SEATTLE STARBUCKS CORP SAID FISCAL FIRSTQUARTER SALES JUMPED 71 TO 66 MILLION FROM 386 MILLION A YEAR AGO THE COFFEE PURVEYOR SAID SALES AT STORES OPEN AT LEAST A YEAR GREW 10 FOR THE PERIOD ENDED JAN 2 9401070164 940107 US SHOE CORP'S SALES CINCINNATI US SHOE CORP SAID SAMESTORE SALES DECLINED 5 FOR THE FIVE WEEKS ENDED JAN 1 FROM THE YEARAGO PERIOD TOTAL SALES FELL 5 TO 2685 MILLION FROM 2825 MILLION IN THE YEARAGO PERIOD FOR THE COMPANY'S WOMEN'S APPAREL OPTICAL AND FOOTWEAR RETAILING OPERATIONS SAMESTORE SALES FOR ITS WOMEN'S APPAREL GROUP FELL 2 WHICH THE COMPANY ATTRIBUTED TO SOFTNESS IN THE TWO WEEKS PRECEDING CHRISTMAS AND A VERY PROMOTIONAL RETAIL ENVIRONMENT SAMESTORE SALES AT THE COMPANY'S LENSCRAFTERS OPTICAL UNIT ROSE 4 WHILE THOSE OF THE FOOTWEAR RETAILING GROUP ROSE 1 FOR THE 11 MONTHS ENDED JAN 1 TOTAL RETAIL SALES DECREASED 2 TO 1886 MILLION FROM THE YEARAGO PERIOD WHILE COMPARABLE STORES SALES FOR THE 11MONTH PERIOD INCREASED 11 TOTAL NUMBER OF STORES OPEN WAS 2278 COMPARED WITH 2468 LAST YEAR A DECLINE OF 8 9401070163 940107 CONTINENTAL AIR TRAFFIC FALLS HOUSTON CONTINENTAL AIRLINES SAID ITS DECEMBER TRAFFIC FELL 58 TO 3305202000 REVENUE PASSENGER MILES FROM 3509027000 A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE AIRLINE SAID ITS LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED ROSE TO 62 FROM 614 FOR THE FULL YEAR 1993 CONTINENTAL SAID TRAFFIC FELL 17 TO 42324180000 REVENUE PASSENGER MILES FROM 43071928000 IN 1992 THE LOAD FACTOR FELL TO 632 FROM 635 9401070162 940107 QUARTERLY MUTUAL FUNDS REVIEW INDIA FUND LAUNCHED BY MORGAN STANLEY NEW DELHI MORGAN STANLEY GROUP INC LAUNCHED A THREEBILLION RUPEE 968 MILLION INDIAN INVESTMENT FUND ON SCHEDULE THIS WEEK AFTER HEADING OFF A COURT CHALLENGE IN INDIA THE FUND IS THE LARGEST OF THREE PRIVATE MUTUAL FUNDS IN THE INDIAN MARKET IT ALSO IS THE FIRST FROM A 100OWNED SUBSIDIARY OF A FOREIGN FINANCIAL INSTITUTION THE NEW MORGAN STANLEY GROWTH FUND EXPECTS TO CLOSE TOMORROW BECAUSE OF STRONG DEMAND IT IS EXPECTED TO BE LISTED ON FIVE INDIAN STOCK EXCHANGES INCLUDING BOMBAY THE GOVERNMENT OPENED THE ASSETMANAGEMENT AND MUTUALFUND BUSINESS TO PRIVATE COMPANIES LAST YEAR AND SEVERAL FUNDS HAVE BEEN APPROVED BY THE SECURITIES AND EXCHANGE BOARD OF INDIA OR SEBI LATE LAST MONTH A LOCAL DELHI COURT ORDERED A STAY OF THE MORGAN STANLEY ISSUE BUT LAWYERS QUICKLY WON AN ORDER FROM THE SUPREME COURT OF INDIA ALLOWING THE ISSUE TO PROCEED ONE PETITION HAD ARGUED THAT BECAUSE MORGAN STANLEY'S DIRECTORS WERE FOREIGNERS THE FORTUNES OF INDIAN INVESTORS WOULD BE AT THE MERCY OF FOREIGN NATIONALS WHO CANNOT BE EASILY HELD LIABLE AND RESPONSIBLE UNDER INDIAN LAWS 9401070161 940107 QUARTERLY MUTUAL FUNDS REVIEW ROBERT LEO TAKES SALES POST AT MFS NEW YORK MUTUALFUND MARKETING EXECUTIVE ROBERT LEO IS LEAVING SMITH BARNEY SHEARSON FOR MASSACHUSETTS FINANCIAL SERVICES BOSTON MFS IS ONE OF THE OLDEST MUTUALFUND COMPANIES IN THE US BUT IN RECENT YEARS IT HASN'T GROWN AT THE RATE OF MANY OF ITS COMPETITORS MFS WHICH HAS TURNED OVER ITS TOP MANAGEMENT IN RECENT YEARS IS TRYING TO BEEF UP ITS SALES AND MR LEO WOULD BECOME PART OF THAT EFFORT MR LEO 49 YEARS OLD WILL BE DIRECTOR OF BROKERDEALER SALES AT MFS BEGINNING JAN 17 HIS GOAL IS TO BOOST THE AMOUNT OF MFS FUNDS SOLD THROUGH BROKERS HE HAD A SIMILAR TITLE AT SMITH BARNEY SHEARSON MR LEO'S DEPARTURE COMES AT A TIME WHEN SMITH BARNEY SHEARSON IS AGGRESSIVELY PARING OPERATIONS FOLLOWING ITS AUGUST MERGER WITH PRIMERICA CORP NOW TRAVELERS INC MFS A SUBSIDIARY OF SUN LIFE ASSURANCE CO OF CANADA MANAGES 35 BILLION 9401070160 940107 SEGA ENTERPRISES PLANS TO SEND VIDEO GAMES BY SATELLITE CABLE TV SPECIAL TO THE WALL STREET JOURNAL TOKYO SEGA ENTERPRISES LTD SAID IT PLANS TO BEAM VIDEO GAMES INTO JAPANESE HOMES VIA BROADCAST SATELLITE AND CABLE TELEVISION IN THE LATTER HALF OF THIS DECADE SEGA ALONG WITH SOFTWARE MAKERS CAPCOM CO KONAMI CORP AND TAITO CORP AND PUBLIC TELEVISION ENTITY JAPAN BROADCASTING CORP KNOWN AS NHK HAS SET UP AN ENTERTAINMENT TASK FORCE AND IS AWAITING CHANGES IN JAPANESE BROADCAST REGULATIONS THAT WOULD MAKE SUCH GAMEPLAYING POSSIBLE THE IDEA IS TO OFFER CONSUMERS ACCESS TO A HOST OF SOFTWARE THROUGH SATELLITE BROADCASTS OR CABLETV HOOKUP POSSIBILITIES INCLUDE ONLINE GAME COMPETITIONS BETWEEN USERS IN APRIL SEGA FORMED A VENTURE WITH TIME WARNER INC'S TIME WARNER ENTERTAINMENT AND TELECOMMUNICATIONS INC BOTH OF THE US TO PIPE VIDEO GAMES INTO US HOMES BY WAY OF CABLE TV SEGA'S PLANS INCLUDE USING THE BS4 BROADCAST SATELLITE TO BE LAUNCHED IN 1997 A COMPANY SPOKESWOMAN SAID THE ENTERTAINMENT TASK FORCE IS LOOKING INTO SUCH SPECIFICS AS HOW TO CHARGE FOR THE SATELLITE GAMES SHE SAID RIVAL NINTENDO CO HAS ALREADY ANNOUNCED SIMILAR PLANS FOR SATELLITE GAMES MEANTIME SEGA SAID IT WILL LAUNCH IN THE US THIS MARCH A VIDEOGAME SYSTEM WITH A DETACHABLE CDROM PLAYER THAT ALSO WORKS AS A PORTABLE PLAYER FOR MUSIC CDS THE GENESIS CDX MULTIMEDIA CDROM ENTERTAINMENT SYSTEM WHICH COMBINES THE FUNCTIONS OF THE COMPANY'S POPULAR GENESIS GAME SYSTEM AND ITS OPTIONAL SEGA CD ATTACHMENT WILL SELL FOR 39999 SEGA SAID IN ADDITION TO THE HARDWARE SIX CDROM SOFTWARE TITLES ARE TO BE INCLUDED THE GENESIS CDX WILL RUN BOTH GAME CARTRIDGES AND CDROMS IT SAID THE SEGA SPOKESWOMAN SAID THE COMPANY EXPECTS TO INTRODUCE THE GENESIS CDX IN EUROPE IN MARCH AS WELL ALTHOUGH IT HASN'T COMPLETED PLANS SEGA HASN'T DECIDED WHETHER TO SELL THE GENESIS CDX IN JAPAN SHE SAID THE SPOKESWOMAN SAID SEGA IS AIMING FOR WORLDWIDE GENESIS CDX SALES OF 200000 UNITS IN THE FIRST YEAR 9401070159 940107 WHO'S NEWS DELL COMPUTER SAYS CHIEF OF TECHNOLOGY LEFT FOR POST AT MIPS AUSTIN TEXAS DELL COMPUTER CORP SAID ITS CHIEF TECHNOLOGY OFFICER G GLENN HENRY LEFT THE COMPANY TO JOIN MICROPROCESSOR DESIGNER MIPS TECHNOLOGIES INC MR HENRY 51 YEARS OLD WILL BE PC DIVISION DIRECTOR FOR MIPS A MOUNTAIN VIEW CALIF UNIT OF SILICON GRAPHICS INC IN THE NEW POST MR HENRY WILL WORK ON DEVELOPING MIPS PROCESSORS FOR PERSONAL COMPUTERS MR HENRY JOINED DELL IN 1988 AT THE TIME THE MAILORDER COMPUTER COMPANY HERALDED HIS ARRIVAL AS A SIGN OF ITS COMMITMENT TO ADVANCED PC RESEARCH AND TECHNOLOGY BEFORE JOINING DELL MR HENRY SPENT 21 YEARS AT INTERNATIONAL BUSINESS MACHINES CORP WHERE HE LED THE EARLY DEVELOPMENT OF BIG BLUE'S UNIX WORKSTATION LINE HE LATER WAS AWARDED THE TITLE OF IBM FELLOW A TOP TECHNICAL ACCOLADE AT THE COMPANY LAST YEAR HOWEVER MR HENRY'S DAYTODAY DUTIES AT DELL WERE DIMINISHED WHEN THE COMPANY HIRED ERIC HARSLEM A FORMER APPLE COMPUTER INC VICE PRESIDENT AS THE NEW SENIOR VICE PRESIDENT OF THE PRODUCT GROUP A POST PREVIOUSLY HELD BY MR HENRY DELL DIDN'T SAY WHETHER MR HENRY'S JOB AS CHIEF TECHNOLOGY OFFICER WOULD BE FILLED 9401070158 940107 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS HERE'S A RADICAL IDEA FOR COMPANIES IF YOU WANT TO SAVE MONEY FIRE YOUR CUTRATE LAWYERS HIRE EXPENSIVE ONES INSTEAD CRAZY CONSIDER THE CASE OF USF&G CORP THE BIG INSURANCE COMPANY WHICH DID JUST THAT AND HAS REAPED ASTONISHING REWARDS AFTER SWITCHING ABOUT HALF OF ITS LEGAL WORK TO BETTERKNOWN ATTORNEYS AND PRICIER LAW FIRMS JUST OVER A YEAR AGO THE INSURER SAYS ITS TOTAL COST OF DEFENDING AND SETTLING CLAIMS PLUNGED BY 50 MILLION THE BEST LAWYERS ARE EXPENSIVE SAYS USF&G'S GENERAL COUNSEL JOHN A MACCOLL BUT THE SECONDBEST LAWYERS ARE VERY EXPENSIVE HIS COMPANY HAS LEARNED HE SAYS THAT TOPFLIGHT ATTORNEYS AT ELITE FIRMS WASTE LESS TIME WIN MORE CASES MAKE FEWER MISTAKES AND ARE MORE INTIMIDATING AT THE SETTLEMENT TABLE USF&G'S RISKY MOVE RUNS DIRECTLY COUNTER TO THE CURRENT LEGAL COSTMANAGEMENT ZEITGEIST EVERYWHERE COMPANIES ARE SCRUTINIZING THEIR LEGAL BUDGETS AND TURNING TO LOWCOST ALTERNATIVES WHEN THEY CAN'T BROWBEAT THEIR TRADITIONAL LAW FIRMS INTO CUTTING RATES IN SOME INSTANCES COMPANIES ARE CONDUCTING BEAUTY CONTESTS IN WHICH LAWYERS COMPETE FOR WORK BY TRYING TO SUBMIT THE LOWEST BID OR ARE DEMANDING FIXEDFEE DEALS IN WHICH LAW FIRMS AGREE IN ADVANCE TO MEET ALL OF A COMPANY'S LEGAL NEEDS FOR A SET SUM BUT THE BALTIMORE PROPERTYANDCASUALTY INSURER GAMBLED THAT THE WAY TO SAVE MONEY MIGHT NOT BE TO SHAVE FEES BUT TO TRY TO MAKE DEEP CUTS IN A BIGGER LEGAL COST DAMAGES ACTUALLY PAID AS A RESULT OF LAWSUITS AGAINST THE COMPANY'S POLICYHOLDERS THE IDEA SUGGESTED BY MR MACCOLL WAS APPROVED BY CHIEF EXECUTIVE OFFICER NORM BLAKE JR THE OFFICIAL HAD TOLD MR MACCOLL TWO YEARS AGO THAT HE WAS WORRIED THAT THE COMPANY HAD DEVELOPED A REPUTATION AS AN EASY MARK IN CLAIMS CASES WITH WEAK DEFENSE ATTORNEYS WHO CAVED IN EASILY THE EXECUTIVES REVIEWED USF&G'S ANNUAL COST OF DEFENDING CLAIMS TEN PERCENT WAS GOING TO LAWYERS IN FEES AND 90 WAS BEING PAID TO PLAINTIFFS IN SETTLEMENTS AND DAMAGE AWARDS MOST COMPANIES OBSESS ABOUT THE LEGAL FEES AND DON'T TRY TO MANAGE THE MORE IMPORTANT NUMBER THE COST OF LOSING MR MACCOLL SAYS WE DECIDED TO TRY AND REDUCE THE 90 BY LEVERAGING THE 10 HE IMMEDIATELY EMBARKED ON A TWOSTEP PROGRAM FIRST HE ENLARGED TO 12 ATTORNEYS FROM THREE THE INHOUSE LAW DEPARTMENT THAT HANDLES SUITS AGAINST POLICYHOLDERS MORE THAN TRIPLING ITS BUDGET TO 3 MILLION EXPERIENCED LITIGATORS WERE LURED WITH SALARY OFFERS THAT WERE COMPETITIVE WITH LOCAL LAW FIRMS NEXT TOP STAFF ATTORNEYS WERE DISPATCHED ACROSS THE COUNTRY TO EVALUATE 250 OF THE COMPANY'S PRINCIPAL OUTSIDE LAW FIRMS THESE TENDED TO BE SMALL FIVETO10PERSON OFFICES THAT CHARGED ABOUT 80 AN HOUR USF&G LAWYERS GRILLED THE OUTSIDE COUNSEL ABOUT TRIAL EXPERIENCE AND PAST VICTORIES ASKING HOW MANY SCALPS THEY HAD HANGING FROM THEIR BELT SAYS MR BLAKE THE ATTORNEYS EVEN PHONED PLAINTIFFS' LAWYERS FOR THE NAMES OF DEFENSE COUNSEL THEY FEARED MOST AFTER A NINEMONTH REVIEW THE AX FELL ON ABOUT 100 OF USF&G'S OUTSIDE LAW FIRMS IN THEIR PLACE THE COMPANY TURNED TO A VARIETY OF COSTLIER FIRMS THESE INCLUDED SUCH WHITESHOE INSTITUTIONS AS BALTIMORE'S PIPER & MARBURY AND HOUSTON'S FULBRIGHT & JAWORSKI BIG FIRMS WHERE ALIST LITIGATORS BILL UPWARDS OF 200 AN HOUR RESULTS WERE APPARENT ALMOST IMMEDIATELY NEIL DILLOFF A PARTNER AT PIPER WAS RETAINED FOR A PROJECT THAT THE COMPANY DUBBED OPERATION HIRED GUN HE REVIEWED 16 OF USF&G'S PRICKLIEST CASES IN TEXAS AND WAS ABLE TO SETTLE THEM FOR A TOTAL OF 63 MILLION OR 3 MILLION LESS THAN PREVIOUS OUTSIDE LAWYERS HAD SUGGESTED WOULD BE THE LOWEST AMOUNT POSSIBLE IN ANOTHER CASE FULBRIGHT PARTNER SCOTT LASSETTER WON A JURY TRIAL ON BEHALF OF A USF&G POLICYHOLDER A FEW WEEKS AFTER THE INSURANCE COMPANY'S PREVIOUS OUTSIDE LAWYER HAD RECOMMENDED SETTLING FOR 1 MILLION AT THE END OF LAST YEAR THE COMPANY CALCULATED THE MONEY IT SPENT IN SETTLEMENTS AND DAMAGES IN 1993 AND COMPARED THAT FIGURE ROUGHLY 12 BILLION WITH ESTIMATES OF WHAT THE COMPANY THOUGHT IT WOULD HAVE PAID IN THE SAME CASES BEFORE STARTING ITS NEW LEGAL PROGRAM THE DIFFERENCE 35 MILLION EVEN MORE SURPRISING WAS THE TALLY FOR LEGAL FEES THE COMPANY CAME IN 15 MILLION UNDER BUDGET SPENDING ABOUT 135 MILLION ON OUTSIDE LAW FIRMS THIS WAS A PARTICULAR BOON BECAUSE THE COMPANY HAD EXPECTED ITS LEGAL FEES TO RISE SOMEWHAT SINCE IT WAS SPENDING MORE PER HOUR ON LAWYERS AND BRINGING MORE CASES TO TRIAL MR MACCOLL SAYS THE SAVINGS MAY ACTUALLY BE EVEN GREATER BECAUSE OF ANOTHER INTANGIBLE BENEFIT DETERRENCE OVER TIME PLAINTIFFS' LAWYERS START TO SENSE THAT A COMPANY IS SERIOUS ABOUT DEFENDING ITSELF AND THEY'LL STOP BRINGING NUISANCE CASES HE SAYS TOPOFTHELINE LAW FIRMS ARE SURE TO CHEER SUCH REPORTS WHERE WORDS LIKE VALUE HAD STARTED TO CREEP INTO THEIR PROMOTIONAL LEXICON NOTIONS LIKE QUALITY MIGHT BEGIN TO REAPPEAR ARMED WITH STORIES LIKE USF&G'S BIGTICKET LAWYERS CAN START WRAPPING THEMSELVES ONCE AGAIN IN THE CASHMERE MANTLE OF ELITISM YOU MIGHT SAY IT'S LIKE BUYING A MERCEDES RATHER THAN A GEO SAYS MR DILLOFF OF THE 265 HOURLY RATE HE CHARGED USF&G THE MERCEDES RUNS BETTER IS MORE EFFICIENT AND DOESN'T BREAK DOWN TO BE SURE THERE'S STILL MUCH TO BE SAID FOR THE RARE FIRM THAT OFFERS LOW FEES AND HIGH QUALITY AS SOME SMALLER SHOPS AND SPINOFFS FROM LARGER FIRMS HAVE BEEN ABLE TO DO BUT SOME CONSULTANTS PREDICT THAT USF&G'S CONTRARIAN STRATEGY MAY BE THE NEXT NEW WAVE IT'S BOTH UNUSUAL AND ENLIGHTENED SAYS JOEL HENNING A SENIOR VICE PRESIDENT OF THE LEGAL CONSULTING FIRM HILDEBRANDT INC SOMERVILLE NJ IT'S REALLY ABOUT TIME THAT GENERAL COUNSEL STOP GOING THROUGH ALL THIS GAMEPLAYING WITH DISCOUNTS AND START FOCUSING ON THE LEGAL FUNCTION WHICH IS TO PROTECT THE COMPANY'S INTERESTS 9401070157 940107 PHILIP MORRIS WORKER PLEADS GUILTY TO CHARGE STEMMING FROM BRIBES NEW YORK A FORMER PURCHASING AGENT FOR PHILIP MORRIS COS PLEADED GUILTY IN FEDERAL COURT HERE TO CHARGES OF BIDRIGGING AND TAX EVASION FOR FAILING TO REPORT AT LEAST 1 MILLION IN BRIBES HE RECEIVED FROM A PHILIP MORRIS SUPPLIER THE JUSTICE DEPARTMENT SAID LOUIS T CAPPELLI AGREED TO DEPOSIT 2 MILLION IN AN ESCROW ACCOUNT TO COVER POSSIBLE FINES MR CAPPELLI OF GARDEN CITY NY COULD NOT BE REACHED FOR COMMENT THE INVESTIGATION WAS PROMPTED BY INFORMATION SUPPLIED BY PHILIP MORRIS WHICH UNCOVERED THE SCHEME IN 1991 AND FIRED MR CAPPELLI AND ANOTHER EMPLOYEE PHILIP MORRIS THEN TURNED ITS INFORMATION OVER THE JUSTICE DEPARTMENT THE GOVERNMENT CHARGED MR CAPPELLI WITH ACCEPTING BRIBES TO AWARD CONTRACTS FOR MAKING ADVERTISING DISPLAY STANDS POSTERS AND COUNTER CARDS TO A PARTICULAR SUPPLIER THE SCHEME ALLEGEDLY BEGAN IN THE LATE 1970S PEOPLE FAMILIAR WITH THE CASE SAID THE INVESTIGATION IS CONTINUING AND IS FOCUSING ON THE OUTSIDE VENDORS THAT SET UP THE ALLEGED SCHEME WITH MR CAPPELLI 9401070155 940107 HOTELS ARE SEEN SHOWING GAINS FOR 4TH QUARTER HIGHER OCCUPANCY RATES ARE CITED BY ANALYSTS AS INDUSTRY RECOVERS BY ANNE WATSON SPECIAL TO THE WALL STREET JOURNAL NEW YORK HOTEL COMPANIES' FOURTHQUARTER EARNINGS WILL PROBABLY JUSTIFY THE MARKET'S RECENT OPTIMISM FOR THE LODGING INDUSTRY ANALYSTS SAID ANALYSTS ATTRIBUTE THEIR OPTIMISTIC VIEWS TO THE ECONOMY AND HIGHER OCCUPANCY AND ROOM RATES AS THE INDUSTRY CONTINUES TO RECOVER FROM A DISMAL PERIOD OF 1990 AND 1991 MY READING WAS THAT BUSINESS WAS GOOD IN THE QUARTER SAID JOSEPH DOYLE AN ANALYST AT SMITH BARNEY SHEARSON INC OCCUPANCY WAS UP 1 TO 2 ROOM PRICES WERE NOT STRONG BUT LOOKING BETTER SMITH TRAVEL RESEARCH OF NASHVILLE TENN SAID IT EXPECTS THE INDUSTRY'S AVERAGE OCCUPANCY RATES WERE 637 IN 1993 UP FROM 617 IN 1992 PKF CONSULTING WHICH TRACKS THE HOTEL INDUSTRY SEES INDUSTRYWIDE REVENUE AND PROFITS INCREASING 32 IN 1993 FOR 1994 THE CONSULTING FIRM FORECASTS REVENUE WILL RISE 45 AND PROFITS WILL GAIN 59 BUT PKF ADDED THAT BECAUSE MANY HOTELS CAN'T REDUCE EXPENSES FURTHER THEY WON'T BE ABLE TO IMPROVE OPERATING PROFIT MARGINS AS THEY DID IN 1992 WHEN MARGINS WIDENED TO 217 FROM 206 IN 1991 ANALYSTS SAID THE ECONOMYLINE HOTELS HAVE RECOVERED THE QUICKEST FROM THE RECESSION THE DEMAND FOR LESSEXPENSIVE ROOMS IS STRONG AND THE ECONOMY HOTELS HAVE MORE FLEXIBILITY TO RAISE THEIR RATES ACCORDING TO MICHAEL MUELLER AN ANALYST AT MONTGOMERY SECURITIES LARGER COMPANIES SUCH AS MARRIOTT INTERNATIONAL INC AND HOSPITALITY FRANCHISE SYSTEMS INC ARE ALSO ENJOYING MORE DEMAND FOR THEIR FRANCHISE SERVICES THE STOCKS OF LEADING PUBLICLY TRADED COMPANIES WITH HOTEL BUSINESSES HOSPITALITY FRANCHISE MARRIOTT LA QUINTA INNS INC AND HILTON HOTELS CORP ALL HIT 52WEEK HIGHS IN LATE DECEMBER HOSPITALITY FRANCHISE SAID IT EXPECTS TO REPORT FOURTHQUARTER EARNINGS OF 25 CENTS A SHARE MORE THAN DOUBLE YEAREARLIER EARNINGS OF 12 CENTS A SHARE THE COMPANY HOLDS THE DAYS INN HOWARD JOHNSON SUPER 8 PARK INN AND RAMADA BRANDS MR MUELLER ATTRIBUTED THE EXPECTED RISE IN HOSPITALITY FRANCHISE'S EARNINGS TO THE COMPANY'S ACQUISITIONS IT BOUGHT SUPER 8 IN APRIL AND PARK INN IN JUNE MR MUELLER ALSO CITED THE COMPANY'S REVENUE FROM PREFERRED VENDOR CONTRACTS WHICH HE SEES PRODUCING ABOUT 65 MILLION IN ANNUAL REVENUE THE LATEST VENDOR CONTRACT WAS SIGNED IN SEPTEMBER WITH PEPSICO INC'S PIZZA HUT ALLOWING PIZZA HUT TO DELIVER PIZZAS TO HOSPITALITY FRANCHISE'S HOTELS JOHN ROHS AN ANALYST AT WERTHEIM SCHRODER & CO ESTIMATES THAT MARRIOTT INTERNATIONAL WILL REPORT EARNINGS OF 45 CENTS A SHARE FOR THE QUARTER THE COMPANY WHICH WAS SPLIT FROM HOST MARRIOTT CORP IN OCTOBER HAD PRO FORMA EARNINGS OF 39 CENTS A SHARE IN THE YEAREARLIER QUARTER A SURVEY OF TWO ANALYSTS BY ZACK'S INVESTMENT RESEARCH INC YIELDED A MEAN ESTIMATE OF 40 CENTS A SHARE FOR MARRIOTT'S RECENT QUARTER MR MUELLER SAID LA QUINTA INNS MEANTIME SHOULD REPORT EARNINGS OF 16 CENTS A SHARE WHICH MATCHES THE MEAN ESTIMATE OF TWO ANALYSTS SURVEYED BY ZACK'S A YEAR EARLIER THE COMPANY REPORTED NET INCOME OF 17 CENTS A SHARE BEFORE A 3FOR2 STOCK SPLIT LA QUINTA'S FOURTHQUARTER EARNINGS WERE LIMITED BY THE COMPANY'S REFURBISHING PROGRAM ONCE THEIR REFURBISHING PROGRAM IS COMPLETED THEIR IMPROVEMENT WILL BE DRAMATIC MR MUELLER SAID JIM SCHMITT OF WESTCOUNTRY FINANCIAL SEES HILTON HOTELS EARNING 55 CENTS A SHARE EXCLUDING ANY EXTRAORDINARY ITEMS THE MEAN ESTIMATE OF EIGHT ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM WAS 63 CENTS A SHARE THE COMPANY REPORTED EARNINGS OF 55 CENTS A SHARE A YEAR EARLIER MR SCHMITT SEES BETTER DAYS AHEAD FOR HILTON SOMETIME IN 1995 AND 1996 ABOUT TWOTHIRDS OF HILTON'S REVENUE COMES FROM GAMBLING BUSINESSES WITH THE REMAINING ONETHIRD FROM LODGING THE COMPANY HAS BEEN HURT BY THE NEW CROP OF COMPETITORS IN THE GAMBLING INDUSTRY AND THE SAGGING HOTEL BUSINESS MR SCHMITT SAID HILTON WILL BE SORELY TESTED IN ITS FIRSTQUARTER WHEN IT WILL FACE THE NEW CASINOHOTEL COMPLEXES IN LAS VEGAS 9401070154 940107 LOTUS' STRONG SALES FOR 4TH QUARTER FUEL RALLY IN SHARES AGAIN CAMBRIDGE MASS LOTUS DEVELOPMENT CORP FINISHED THE YEAR WITH STRONG MOMENTUM BEHIND ITS LATEST 123 SPREADSHEET AND SEVERAL BIG SALES OF ITS SMARTSUITE BUNDLED SOFTWARE PACKAGE EXECUTIVES SAID WE'VE SEEN A STRONG SUSTAINABLE GAIN OF 15 TO 20 PERCENTAGE POINTS IN MARKET SHARE SINCE THE NEW 123 WAS INTRODUCED SIX MONTHS AGO SAID JEFFREY BEIR VICE PRESIDENT OF LOTUS'S SPREADSHEET UNIT OPTIMISM ABOUT FOURTHQUARTER SALES AND NEW PRODUCTS HAS HELPED FUEL A RALLY IN LOTUS SHARES THE STOCK WHICH ROSE 3 WEDNESDAY CLOSED YESTERDAY AT 58125 A SHARE UP 1125 IN TRADING ON THE NASDAQ STOCK MARKET AMONG FOURTHQUARTER SALES WAS A MARINE CORPS PURCHASE OF 20000 UNITS OF SMARTSUITE AND A DECISION BY MOBIL CORP TO STICK WITH LOTUS 123 AFTER AN EVALUATION OF MICROSOFT CORP'S EXCEL PRODUCT MR BEIR SAID 123 OVERTOOK EXCEL IN SINGLECOPY SALES IN THE FOURTH QUARTER BUT HE SAID THE PROGRAM STILL LAGS EXCEL IN OVERALL WINDOWS MARKET SHARE WHEN SUITE SALES ARE FACTORED IN BECAUSE OF THE STRENGTH OF MICROSOFT'S OFFICE SOFTWARE PACKAGE IN OVERALL SALES MR BEIR ESTIMATES THAT 123 HAS RISEN TO ABOUT 40 OF THE WINDOWS MARKET BEHIND EXCEL AT ABOUT 50 OF THE MARKET MICROSOFT'S OFFICE SUITE IS STILL THE MARKET LEADER SAID RICK SHERLUND AN ANALYST WITH GOLDMAN SACHS & CO BUT LOTUS HAS BECOME THE ONLY OTHER MAJOR PLAYER AND BOTH ARE RAPIDLY GAINING SHARE AT THE EXPENSE OF THIRDPLACE BORLAND INTERNATIONAL INC HE SAID 9401070153 940107 COMEX DEFERS ELECTION OF BOARD NEW YORK NEW YORK'S COMMODITY EXCHANGE BEST KNOWN FOR ITS PRECIOUSMETAL FUTURES CONTRACTS SAID IT WOULD DEFER ITS ANNUAL ELECTION OF DIRECTORS UNTIL THE CONCLUSION OF ITS MERGER TALKS WITH THE NEW YORK MERCANTILE EXCHANGE THE NYMEX HAS PROPOSED ACQUIRING THE COMEX TERMS CALL FOR NYMEX TO PAY 35 MILLION WHICH WOULD BE DIVIDED AMONG COMEX MEMBERS COMEX TRADERS ALSO WOULD GET 15 MILLION IN COMPENSATION FROM THEIR EXCHANGE'S OWN REVENUES CURRENT COMEX DIRECTORS AND MEMBERS OF BOTH THE COMEX AND NYMEX ARE EXPECTED TO VOTE ON THE PROPOSAL IN COMING WEEKS 9401070152 940107 INDONESIA BUDGET CALLS FOR BUSINESS GROWTH AND GRIP ON SPENDING JAKARTA INDONESIA'S NEW BUDGET CALLS FOR A TINY RISE IN SPENDING AND A BIG LEAP IN EXPECTATIONS THAT THE PRIMARY ENGINE OF GROWTH WILL BE PRIVATE NONOIL BUSINESS THE DRAFT BUDGET FOR THE YEAR BEGINNING APRIL 1 PRESENTED TO PARLIAMENT BY PRESIDENT SUHARTO KEEPS A FIRM GRIP ON EXPENDITURES WHILE AIMING FOR A HEFTY INCREASE IN TAX COLLECTION INDONESIA IS COUNTING ON RECEIVING ABOUT 48 BILLION IN FOREIGN AID THAT'S A 48 INCREASE FROM THE AMOUNT BUDGETED FOR THE CURRENT YEAR THOUGH IN THE COMING YEAR FOREIGN AID ACCOUNTS FOR A SLIGHTLY SMALLER PERCENTAGE OF TOTAL REVENUE 144 DOWN FROM 15 THE BUDGET TRADITIONALLY APPROVED WITHOUT CHANGES SETS BOTH TOTAL SPENDING AND REVENUE AT 6975 TRILLION RUPIAH 3302 BILLION THAT'S 12 ABOVE THE LEVEL APPROVED FOR THE CURRENT YEAR BUT REPRESENTS LITTLE REAL GROWTH AS ANNUAL INFLATION IS NEARLY 10 THE BUDGET DRAFT CONFIRMS THAT THE COUNTRY HAS BROADENED ITS BASE TO COPE WITH A DROP IN OILEXPORT INCOME WHILE LOW WORLD OIL PRICES NOW AROUND 13 A BARREL CONTRIBUTED TO THE DECISION TO KEEP A TIGHT LID ON SPENDING THE DRAFT SHOWS HOW SMALL A ROLE OIL PLAYS ONLY ABOUT 22 OF DOMESTIC REVENUE WILL COME FROM OIL AND GAS COMPARED WITH NEARLY 80 A DECADE AGO IT ALSO SHOWS THAT TECHNOCRATS RETAIN A STRONG HAND IN MAKING POLICY WHEN MR SUHARTO APPOINTED A NEW CABINET LAST MARCH THERE WERE CONCERNS THAT TECHNOCRATS HAD LOST GROUND TO A SCHOOL OF MINISTERS CALLED THE NATIONALISTS WHO FAVOR BIG STATE SPENDING THE REALISTIC AND CAUTIOUS DRAFT BUDGET INDICATES THAT TECHNOCRATS ARE VERY MUCH IN CONTROL SAID HADI SOESASTRO EXECUTIVE DIRECTOR OF THE PRIVATE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES THE DRAFT ALSO INDICATES THE NATION IS DEPENDING ON PRIVATE BUSINESS WHICH GENERALLY EXPECTS A GOOD 1994 TO SPUR GROWTH 9401070151 940107 BUSINESS BRIEFS TYSON FOODS INC ACQUIRED GORGES FOODSERVICE INC HARLINGEN TEXAS TERMS WEREN'T DISCLOSED F&M NATIONAL CORP SIGNED A PRELIMINARY AGREEMENT TO ACQUIRE HALLMARK BANK & TRUST CO SPRINGFIELD VA TERMS WEREN'T DISCLOSED BUT A SPOKESMAN FOR F&M SAID THE PURCHASE WOULD INVOLVE A TAXFREE EXCHANGE OF SHARES GENERAL TIRE INC WAS AWARDED A 4 MILLION ONEYEAR CONTRACT TO SUPPLY TRUCK AND PASSENGER TIRES FOR CALIFORNIA'S STATEOWNED VEHICLES HOLLYWOOD CASINO CORP BOUGHT A DOCKSIDE CASINO IN TUNICA COUNTY MISS FROM SUMMIT CASINOS INTERNATIONAL INC FOR 15 MILLION REYNOLDS & REYNOLDS CO ACQUIRED FORMCRAFT INC A HOUSTONBASED REGIONAL BUSINESSFORMS MANUFACTURER TERMS WEREN'T DISCLOSED 9401070150 940107 QUARTERLY MUTUAL FUNDS REVIEW IT'S TOUGH TO GET OUT OF INVESTMENT RUT BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL JUST AS IN A BAD RELATIONSHIP YOU PAY DEARLY FOR STAYING TOO LONG IN A LOUSY MUTUAL FUND YOU LOSE MONEY YOU LOSE SLEEP YOU FORGET THERE ARE BETTER MUTUAL FUNDS OUT THERE WAITING FOR YOU THINGS ARE UNLIKELY TO CHANGE UNLESS YOU GET OUT OF THE RUT CONSIDER THIS A RECENT ACADEMIC STUDY SAYS THE WORST MUTUAL FUNDS CONSISTENTLY PRODUCE INFERIOR RETURNS IF I SAW A FUND IN THE BOTTOM 10 IN THE PAST TWO OR THREE YEARS I FOUND THAT THE FUND IS LIKELY TO STAY IN THE BOTTOM 10 SAYS RAVI SHUKLA A SYRACUSE UNIVERSITY FINANCE PROFESSOR WHO COWROTE THE STUDY THERE'S MORE MOMENTUM FOR INFERIOR PERFORMANCE THAN SUPERIOR PERFORMANCE ONE WAY TO AVOID GETTING CAUGHT UP IN THAT MOMENTUM IS TO BECOME A SMARTER SHOPPER IN THE MUTUALFUND SUPERMARKET IT'S EASY TO SEE WHY TOPPERFORMING FUNDS GROW IN SIZE THEY GROW BIGGER GATHER MORE ASSETS SAYS CHARLES TRZCINKA A FINANCE PROFESSOR AT THE STATE UNIVERSITY OF NEW YORK AT BUFFALO AND STUDY COAUTHOR BUT HOW DO YOU EXPLAIN BADLY PERFORMING FUNDS THAT DON'T LOSE ALL THEIR SHAREHOLDERS WHY DON'T PEOPLE PULL THEIR MONEY OUT THEY DON'T MAKE PROPER COMPARISONS PROF TRZCINKA SAYS INVESTORS MAKE THE MISTAKE OF COMPARING THE RETURNS OF MUTUAL FUNDS TO OTHER SAVINGS VEHICLES SUCH AS CERTIFICATES OF DEPOSIT PROF TRZCINKA SAYS INSTEAD THEY SHOULD STACK UP MUTUALFUND RETURNS TO MORE APPROPRIATE BENCHMARKS SUCH AS THE STANDARD & POOR'S 500STOCK INDEX WITH THE RIGHT COMPARISONS AT HAND IT'S EASIER TO DITCH THE LOSERS AND SWITCH TO MOREPROMISING FUNDS HOW DO YOU CHOOSE AMONG THOUSANDS OF FUNDS MOST DON'T THEY LEAVE IT UP TO THEIR BROKER PROF TRZCINKA SAYS THEY NEED TO PUT A LITTLE MORE INTO THEIR DECISIONMAKING PROFS TRZCINKA AND SHUKLA SPENT NEARLY TWO YEARS COMPARING THE PERFORMANCES OF 1387 OPENEND STOCK AND BOND FUNDS FROM 1979 TO 1989 TO THE RETURNS OF THE S&P 500 AND US TREASURY BILLS LOUSY STOCKPICKING POOR MARKETTIMING HIGH EXPENSES AND FREQUENT PORTFOLIO TURNOVER THAT RESULTS IN EXPENSIVE BROKER COMMISSIONS WERE CITED AS SOME OF THE REASONS FOR BOGGING DOWN PERFORMANCE SOME FUNDS CAN THANK BACKEND LOADS FOR THEIR CONTINUED EXISTENCE THESE FUNDS CHARGE COMMISSIONS FOR REDEEMING THEIR SHARES IT'S POSSIBLE PEOPLE SAY TO THEMSELVES THE FUND WILL DO BETTER THEN WE CAN GET OUT' SO THEY STAY IN UNTIL THEN BECAUSE THEY DON'T WANT TO GET THESE CHARGES PROF SHUKLA SAYS IF NOT FOR THOSE LOADS THESE FUNDS WOULD HAVE DISAPPEARED INVESTORS NEED TO BE CAREFUL WHERE THEY PUT THEIR MONEY THERE ARE TONS OF DOGS OUT THERE AND NOT JUST THE 44 WALL STREETS AND STEADMAN SAYS JONATHAN POND A WATERTOWN MASS FINANCIAL PLANNER AND AUTHOR REFERRING TO TWO FUND GROUPS INFAMOUS FOR HAVING HAD POORLY PERFORMING FUNDS BUT YOU DON'T HAVE TO STICK WITH A POOR FUND AND YOU DON'T HAVE TO BUY INTO ONE IF YOU DO YOUR HOMEWORK BEFORE BUYING A FUND IT'S NOT A RANDOM CHANCE IT WILL TURN INTO AN INFERIOR ONE MR POND SAYS MR POND'S OWN RECENT RESEARCH FOUND 100 FUNDS THAT CONSISTENTLY LANDED IN THE TOP 20 IN THEIR CATEGORY IN BOTH OF THE PAST TWO UP AND DOWN MARKETS INDEED PROFS SHUKLA AND TRZCINKA NAMED 24 FUNDS THAT HAVE BEEN CONSISTENTLY SUPERIOR INCLUDING FIDELITY MAGELLAN NICHOLAS FUND LINDNER DIVIDEND AND PHOENIX BALANCED OF COURSE TOPPERFORMING FUNDS CAN STILL FALL TEMPORARILY INTO THE INVESTMENT DOGHOUSE BUT THEY'RE UNLIKELY TO REMAIN THERE FOREVER THE ACADEMIC STUDY RECOMMENDED STICKING WITH LARGE FUNDS DESPITE A COMMON BELIEF THAT SUCH FUNDS ARE SLUGGISH AND INFLEXIBLE THE TWO PROFESSORS CONTEND THAT THE AVERAGE SUPERIOR FUND HAS 11 BILLION IN ASSETS WHILE A TYPICAL LAGGARD HAS 129 MILLION IN ASSETS A LARGE FUND CAN MOVE THE MARKET AND THAT BRINGS A LITTLE PERFORMANCE BIAS TO THE FUND PROF SHUKLA SAYS FUND GROUPS MAKE SURE THEIR STAR FUNDS TURN IN SOLID PERFORMANCES WHICH MEANS THEY WON'T TAKE UNNECESSARY RISKS SAID DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER ASSETS FLOW TO THE BETTER FUNDS MR PHILLIPS SAYS THE LARGER FUNDS TAKE GREAT PAINS TO MAKE SURE THEY DON'T GIVE PEOPLE A REASON TO SELL BESIDES FAVORING LARGE FUNDS FUND EXPERTS OFFER SOME OTHER ADVICE FOR STAYING AWAY FROM MUTUALFUND TURKEYS CHECK FOR OUTRAGEOUS FEES AVERAGE ANNUAL EXPENSES ARE ABOUT 15 FOR STOCK FUNDS 1 FOR TAXABLE BOND FUNDS AND 075 FOR MUNICIPALBOND FUNDS ACCORDING TO MORNINGSTAR PICK A MANAGER WITH A GOOD REPUTATION SEE IF THE MANAGER OF YOUR FAVORITE FUND IS STILL AT THE HELM STICK WITH A WELLKNOWN FUND FAMILY AMONG MR POND'S GUIDELINES FOR INVESTORS DECIDE HOW MUCH TO INVEST IN STOCKS AND BONDS THEN CALCULATE HOW MUCH GOES INTO EACH STOCK AND BONDFUND CATEGORY INTERNATIONAL GROWTH AND INCOME JUNK BONDS ETC IF YOU'RE UNDECIDED DAVID WRIGHT A SANTA MONICA CALIF FINANCIAL ADVISER RECOMMENDS FIDELITY ASSET MANAGER WHICH DIVERSIFIES ITS ASSETS AMONG STOCKS AND BONDS HE ALSO LIKES GT GLOBAL HIGH INCOME A BOND FUND WITH LOW VOLATILITY AND VANGUARD/WELLESLEY INCOME FOR ITS SOLID LONGTERM TRACK RECORD DAVID PETERSEN A SILVER SPRING MD FINANCIAL PLANNER PUTS A HIGH PREMIUM ON A FUND MANAGER WHAT MAKES THINGS WORK IS THE INDIVIDUAL MANAGING THE FUND HE SAYS AMONG HIS FAVORITES ARE AMERICAN HERITAGE'S HEIKO THIEME AND OAKMARK INTERNATIONAL'S DAVID HERRO PROF SHUKLA SAYS A MANAGER'S EDUCATIONAL BACKGROUND MAY BE KEY TO A FUND'S PERFORMANCE A SEPARATE STUDY OF HIS SHOWS THAT MUTUAL FUNDS RUN BY CHARTERED FINANCIAL ANALYSTS POSTED BETTER RETURNS THAN THOSE WITHOUT THE CERTIFICATION CHARTERED FINANCIAL ANALYSTS RECEIVE THIS PROFESSIONAL RANKING AFTER EXTENSIVE EXAMINATIONS AND EXPERIENCE AS ANALYSTS JOHN BUTLER THE RECENTLY RETIRED PRESIDENT OF INVESCO FUNDS GROUP SAYS STAYING WITH A WELLKNOWN FAMILY OF FUNDS MAKES IT EASIER TO REDEEM SHARES FROM ONE FUND AND SWITCH INTO ANOTHER 9401070149 940107 TAIWAN CURBS FOREIGN ROLE IN STOCK MARKET CENTRAL BANK IS CONCERNED OVER CURRENCY'S CLIMB MOVE IS SHIFT IN POLICY BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN TAIWAN'S CENTRAL BANK CONCERNED ABOUT THE RECENT APPRECIATION OF THE NEW TAIWAN DOLLAR IS SLOWING THE FLOW OF FOREIGN CAPITAL INTO THE COUNTRY'S BOOMING STOCK MARKET IT IS A POLICY SHIFT THAT WON'T SIT WELL WITH FOREIGN INVESTORS WHO ARE EAGER TO GET A PIECE OF THE TAIWAN STOCK MARKET'S SKYROCKETING RALLY ON WEDNESDAY THE FIRST TRADING DAY OF 1994 THE MARKET'S WEIGHTED INDEX SHOT UP 34628 POINTS OR 57 TO 641684 TRADING SLOWED THURSDAY WITH THE TAIWAN STOCK EXCHANGE WEIGHTED INDEX UP 3768 POINTS TO CLOSE AT 645452 THE HIGHEST LEVEL SINCE JUNE 7 1990 JUST TWO MONTHS AGO THE CENTRAL BANK OPENED THE FLOODGATES AND ALLOWED OVERSEAS INSTITUTIONAL INVESTORS UNPRECEDENTED ACCESS TO THE MARKET SINCE EARLY NOVEMBER REGULATORS HERE HAVE AUTHORIZED ABOUT US16 BILLION OF PLANNED INVESTMENTS OF FOREIGN CAPITAL IN TAIWANESE SECURITIES THAT MONEY HAS HELPED SPUR THE CURRENT RALLY WHICH HAS BOOSTED SHARE PRICES 60 IN THE PAST TWO MONTHS BUT THE INCREASED FLOW OF CAPITAL INTO TAIWAN DURING DECEMBER ALSO HELPED PUSH THE NEW TAIWAN DOLLAR MODESTLY HIGHER THAT BROUGHT AN IMMEDIATE REACTION FROM THE CENTRAL BANK WHOSE PRIMARY CONCERN IS TO KEEP THE CURRENCY STABLE AND MAINTAIN THE COMPETITIVENESS OF TAIWANESE EXPORTS BROKERS SUGGEST THAT THE CENTRAL BANK ALSO MAY BE WORRIED ABOUT THE REEMERGENCE OF SPECULATIVE TRADING IN THE STOCK MARKET WHICH RECENTLY HAS FEVERISHLY FOLLOWED FOREIGNERS' INVESTMENT STRATEGIES BY SLOWING THE FLOW OF FOREIGN MONEY INTO THE MARKET AUTHORITIES MAY BE HOPING TO COOL THE RALLY CENTRALBANK OFFICIALS LAST WEEKEND INDICATED THROUGH THE LOCAL PRESS THAT THEY ARE ADOPTING A MORERESTRICTIVE POLICY TOWARD FOREIGN INVESTMENT UNDER TAIWAN GOVERNMENT REGULATIONS A TOTAL OF US5 BILLION IN FOREIGN CAPITAL MAY BE BROUGHT INTO THE COUNTRY FOR INVESTMENT IN SECURITIES BUT THE MARKET'S RECENT RALLY HAS BROUGHT A TORRENT OF FOREIGN APPLICATIONS THAT WOULD EXCEED THAT CEILING TAIWAN'S SECURITIES AND EXCHANGE COMMISSION IS PUSHING TO RAISE THE CEILING BUT THE LOCAL PRESS SAYS CENTRALBANK OFFICIALS OPPOSE SUCH A MOVE AT THIS TIME MOREOVER SINCE MIDDECEMBER THE CENTRAL BANK HAS BEEN PROCEEDING SLOWLY IN ACTING ON APPLICATIONS RICHARD WERTHEIMER A BROKER WITH BARING SECURITIES TAIWAN LTD BELIEVES THAT THE TIGHTER POLICY PROBABLY WILL BE TEMPORARY AND THAT ONCE THE CURRENCY STABILIZES INVESTMENT APPROVALS WILL RESUME THE GENERAL TREND OF POLICY IS STILL TO OPEN UP HE SAYS THERE'S GOING TO BE A LOT OF PRESSURE ON THE CENTRAL BANK INDEED FOREIGN INVESTORS ARE CLAMORING TO GET INTO THE TAIWAN STOCK MARKET WHICH HAS UNDERPERFORMED MOST OTHER EAST ASIAN MARKETS FOR THE PAST YEAR CURRENTLY 18 FOREIGN INSTITUTIONS ARE AWAITING APPROVAL TO INVEST US136 BILLION IN TAIWAN SOME FUND MANAGERS SAY THAT THE CURRENT DELAY ON INVESTMENT APPLICATIONS RUNS COUNTER TO TAIWAN'S EFFORTS TO INTRODUCE ECONOMIC AND FINANCIAL REFORMS THAT WOULD ENABLE THE COUNTRY TO ENTER THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN THE NEAR FUTURE LIBERALIZATION OF THE FINANCIAL MARKET IS A PREREQUISITE TO ENTERING GATT SAYS JAMES HSU PRESIDENT OF FUBON INVESTMENT SERVICES CO A LOCAL FUND MANAGEMENT COMPANY SO WE SHOULD BE MORE GENEROUS IN SPEEDING UP THE PROCESS OF LIBERALIZATION RATHER THAN NOT ALLOWING MORE INVESTMENT A FUBON OVERSEAS SUBSIDIARY HAS APPLIED TO INVEST US200 MILLION IN TAIWAN IN CONJUNCTION WITH WARDLEY FINANCIAL SERVICES LTD OF HONG KONG IN A TELEPHONE INTERVIEW SAMUEL SHIEH THE CENTRAL BANK GOVERNOR SAID IT IS TOO EARLY TO DISCUSS WHETHER THE INVESTMENT CEILING WILL BE RAISED BUT HE ASSERTED THAT THE GOVERNMENT IS COMMITTED TO ALLOWING MORE FOREIGN INVESTMENT IN TAIWAN'S MARKET MR SHIEH ACKNOWLEDGED THAT THE CENTRAL BANK WAS CONCERNED ABOUT THE CURRENCY'S APPRECIATION DURING DECEMBER ALONG WITH THE IMPACT ON INTEREST RATES AND MONEY SUPPLY OUR FOREIGNEXCHANGE MARKET IS VERY SHALLOW HE SAID NOTING THAT TURNOVER OFTEN RANGES BETWEEN US50 MILLION AND US100 MILLION A DAY SO IF WE SUDDENLY HAVE US50 MILLION COME IN IN A DAY THERE IS IMMEDIATE APPRECIATION THIS IS VERY DIFFICULT THE SEC HAS BEEN PUSHING TO GET THE CENTRAL BANK TO AGREE TO AN INCREASE IN THE INVESTMENT CEILING TO US75 BILLION OR US10 BILLION BUT GOVERNMENT OFFICIALS SAY THAT SO FAR THE CENTRAL BANK HAS HAD THE UPPER HAND IN THE DEBATE A MINISTRY OF FINANCE OFFICIAL SAID THAT THE FINANCE MINISTER LIN CHENKUO SO FAR HAS REFUSED TO MAKE A FORMAL REQUEST TO THE CENTRAL BANK THAT THE CEILING BE RAISED HE SAID MR LIN HAS URGED THE SEC TO CONTINUE NEGOTIATING WITH THE CENTRAL BANK AND TO WAIT FOR FOREIGN INVESTMENTS TO HIT THE US5 BILLION LIMIT ONE HITCH THE SEC AND THE CENTRAL BANK CAN'T EVEN AGREE ON THE TECHNICALITIES OF HOW TO DEFINE WHEN THAT LIMIT IS REACHED 9401070147 940107 PHILADELPHIA EXCHANGE TO LIST NEW PRODUCTS BASED ON INDEX OPTIONS PHILADELPHIA THE PHILADELPHIA STOCK EXCHANGE SAID IT PLANS TO LAUNCH TRADING IN THREE NEW PRODUCTS BASED ON INDEX OPTIONS EARLY THIS YEAR PENDING APPROVAL BY THE SECURITIES AND EXCHANGE COMMISSION THE EXCHANGE SAID IT PLANS TO LIST THE BIG CAP INDEX COMPRISING 50 OF THE LARGEST STOCKS PUBLICLY TRADED IN THE US THE SEMICONDUCTOR INDEX COMPRISING THE STOCKS OF 16 SEMICONDUCTOR DEVELOPERS MANUFACTURERS AND DISTRIBUTORS AND THE BABY BELL INDEX MADE UP OF THE SHARES OF AMERICAN TELEPHONE & TELEGRAPH CO AND THE REGIONAL BABY BELL TELEPHONE COMPANIES AN INDEX OPTION IS THE RIGHT BUT NOT THE OBLIGATION TO EITHER BUY OR SELL THE VALUE OF AN INDEX AT A PREDETERMINED PRICE ON OR BEFORE A FIXED EXPIRATION DATE 9401070146 940107 CONSOLIDATED TECHNOLOGY GROUP NEW YORK CONSOLIDATED TECHNOLOGY GROUP LTD SAID IT ACQUIRED AVIONICS RESEARCH CORP A PRIVATELY HELD PROVIDER OF TECHNICAL PERSONNEL TERMS WEREN'T DISCLOSED CONSOLIDATED A COMPUTER AND OPTICALRELATED SERVICES COMPANY SAID THE ACQUISITION CONSISTS OF TWO RELATED COMPANIES BASED IN NEW YORK AND FLORIDA 9401070145 940107 ASSETS OF MONEY FUNDS ROSE FOR LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS CLIMBED BY 491 BILLION TO 58787 BILLION FROM A REVISED 58296 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT CO INSTITUTE SAID ASSETS OF 651 RETAIL MONEY MARKET MUTUAL FUNDS GREW BY 482 BILLION TO 39799 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 404 TAXABLE MONEY MARKET FUNDS ROSE BY 178 BILLION TO 30803 BILLION ASSETS OF 247 RETAIL TAXEXEMPT FUNDS ROSE BY 303 BILLION TO 8996 BILLION ASSETS OF THE 280 INSTITUTIONAL MONEY MARKET FUNDS INCREASED BY 965 MILLION TO 18988 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 226 TAXABLE MONEY MARKET FUNDS FELL BY 122 BILLION TO 16664 BILLION ASSETS OF 54 TAXEXEMPT FUNDS ROSE BY 132 BILLION TO 2325 BILLION 9401070144 940107 WHO'S NEWS HOLSON BURNES GROUP INC HOLSON BURNES GROUP INC NORTH SMITHFIELD RI STEVEN W BARNES EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS PHOTOGRAPHALBUM MAKER WAS NAMED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR MR BARNES 33 YEARS OLD SUCCEEDS MALCOLM LLOYD 54 WHO IS LEAVING THE COMPANY TO PURSUE OTHER INTERESTS HOLSON BURNES SAID IN A PRESS STATEMENT DEBORAH CARREAU 36 VICE PRESIDENTCONTROLLER WAS NAMED VICE PRESIDENTFINANCE AND WILL ASSUME MANY OF MR BARNES'S FORMER FINANCIAL DUTIES THE COMPANY SAID HOLSON BURNES ALSO SAID IT EXPECTS 1993 FOURTHQUARTER SALES TO BE IN THE 43 MILLION TO 44 MILLION RANGE WHICH IT SAID REPRESENTS A 13 TO 15 INCREASE OVER THE YEAREARLIER FOURTH QUARTER 9401070143 940107 INTERNATIONAL WORLD ECONOMY GATT TREATY IS PERCEIVED AS MAKING REAL CHANGES MOSTLY FOR THE BETTER BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WAVES OF AMERICAN BUSINESS PEOPLE LOBBIED HARD FOR THE GLOBAL TRADE TREATY THAT FINALLY EMERGED LAST MONTH IN GENEVA NOW THAT THEY'VE GOT IT WILL IT AFFECT HOW THEY OPERATE IN THE REAL WORLD OF INTERNATIONAL COMMERCE ABSOLUTELY AND GENERALLY FOR THE GOOD THOUGH SOMETIMES IN ENTIRELY NEW WAYS THAT'S BECAUSE THE NEW TREATY FOR ALL ITS ERRORS AND OMISSIONS GOES FAR BEYOND ITS PREDECESSORS TO REFLECT CHANGES IN THE GLOBAL ECONOMY FOR THE FIRST TIME IT BRINGS COMMERCIAL SERVICES AGRICULTURE AND INTANGIBLES LIKE SOFTWARE INTO THE FRAMEWORK OF GLOBAL TRADE RULES OVER TIME THE DEAL WILL LEAD TO RULES FOR THESE NEW AREAS OF ECONOMIC ACTIVITY COMPLETE WITH A WORLD TRADING ORGANIZATION TO ENFORCE THEM IT'S A VERY CHANGED WORLD THE RULEBASED ASPECT OF TRADE WILL BE VASTLY EXPANDED SAYS CALMAN COHEN A LOBBYIST WHO REPRESENTS US MULTINATIONALS ON TRADE ISSUES ONLY THE BROAD OUTLINE WAS SIGNED DEC 15 UNDER AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE 116MEMBER ORGANIZATION THAT OVERSEES MOST WORLD COMMERCE ITS COMPLEX CLAUSES WON'T START TO TAKE HOLD UNTIL 1995 IMPORTANT DETAILS ARE STILL BEING ADDED AND UNFINISHED HAGGLING ON CERTAIN KEY TOPICS SUCH AS TELECOMMUNICATIONS AND FINANCIAL SERVICES COULD LAST ANOTHER TWO YEARS THE DOCUMENT IS NEITHER COMPLETE NOR PERFECT YET AFTER A FEW WEEKS OF REFLECTION MANY BUSINESSMEN CONCLUDE ITS TERMS CAN ALTER SIGNIFICANTLY THE CONDUCT OF INTERNATIONAL COMMERCE AS THEY PHASE IN PAST AGREEMENTS BASICALLY CUT TARIFFS OR ABOLISHED OTHER IMPEDIMENTS TO INDUSTRIAL TRADE BUT THIS ONE RECOGNIZES HOW MUCH THE GLOBAL ECONOMY HAS EVOLVED BEYOND THE OLD CONCEPT OF PUTTING THINGS IN BOXES AND SHIPPING THEM SOMEWHERE THIS AGREEMENT MAKES TRADE AND INVESTMENT MORE OPEN AND TRANSPARENT AND MUTUALLY ADVANTAGEOUS AND THAT'S ALWAYS A PLEASURE SAYS JACK EBY A SENIOR STRATEGIST FOR FORD MOTOR CO FOR EXAMPLE THE RULES ON FOREIGN INVESTMENT SAY EXECUTIVES WILL PERMIT MORERATIONAL ECONOMIC CHOICES ABOUT WHERE TO PUT FACTORIES SOME EVEN TALK OF BRINGING BACK JOBS TO THE US RATHER THAN SENDING MORE PRODUCTION OVERSEAS THAT'S BECAUSE SOME OFFSHORE PLANTS WERE BUILT UNDER LAWS REQUIRING COMPANIES TO MANUFACTURE LOCALLY IN ORDER TO SELL LOCALLY THE NEW RULES MAKE IT HARDER FOR GOVERNMENTS TO ENFORCE SUCH DEMANDS FORD HONEYWELL INC AND HEWLETTPACKARD CO ARE AMONG THOSE THAT MIGHT ADJUST THEIR MANUFACTURING NETWORKS ACCORDINGLY INCLUDING GREATER USE OF THEIR US PLANTS FOR EXPORTS A DIVERSE GROUP OF BUSINESSES WELCOME THE TREATY'S NEW PROTECTION FOR INTELLECTUAL PROPERTY MEANING A COMPANY WON'T SEE PROPRIETARY ITEMS SO EASILY RIPPED OFF IT'S NOT SURPRISING THAT A HIGHTECH COMPANY LIKE HEWLETTPACKARD LIKES HOW THE TREATY RAISES THE THRESHOLD LEVEL OF PROTECTION AS A COMPANY EXECUTIVE PUTS IT YET THE ACCOUNTING FIRM ARTHUR ANDERSEN & CO FEELS THE SAME THESE RULES WILL HELP IT GUARD FOR EXAMPLE SOFTWARE USED IN TRAINING COURSES SUCH RULES SHOULD MAKE DOING BUSINESS ABROAD SAFER AND EASIER IF THEY'RE ENFORCED ALWAYS A PROBLEM HOWEVER THE NEW TRADING ORGANIZATION IS SUPPOSED TO PUNISH CHRONIC CHEATERS THE EFFORT TO ADD SERVICE INDUSTRIES MAY BE THE MOST IMPORTANT DEPARTURE FROM PAST AGREEMENTS BUT IT ISN'T OVER IF FINANCIAL SERVICES ARE INCLUDED MORE COMPANIES WILL EXPAND ABROAD IN NEW FIELDS FORD FOR EXAMPLE WANTS TO FINANCE DELIVERIES TO BOTH DEALERS AND CUSTOMERS WORLDWIDE SOMETHING NOW IMPOSSIBLE IN MANY COUNTRIES SUCH THINGS CAN MEAN A LOT TO THE US ECONOMY SERVICE EXPORTS LAST YEAR WERE 160 BILLION WITH A 60 BILLION TRADE SURPLUS CONTROVERSIAL BUT GENERALLY WELCOME ARE NEW RULES ABOUT HOW TO GOVERN THE PRACTICE OF DUMPING OR SELLING AT UNFAIRLY LOW PRICES SOME 40 NATIONS HAVE ANTIDUMPING LAWS AND SOME INCLUDING THE US USE THEM TO PROTECT DOMESTIC INDUSTRIES FROM OVERSEAS RIVALS THAT CAN'T BE STOPPED BY FAIRMARKET MEANS TO SOME DEGREE THE TREATY WILL MAKE SUCH LAWS LESS OPEN TO ABUSE AND CURTAIL PROTECTIONISM YET NOT COMPLETELY ACCORDING TO ONE TRADE SPECIALIST THE US GOT GATT NEGOTIATORS TO REVISE THE LEVEL AT WHICH ANTIDUMPING MEASURES CAN BE APPLIED THE INTENDED RESULT MORE PROTECTION FOR AMERICAN STEELMAKERS THE ACCIDENTAL RESULT MORE DIFFICULTY GETTING AMERICAN WHEAT INTO EUROPE UNDER OTHER TREATY TERMS INTENDED TO FREE THAT MARKET COMPANIES LIKE CARGILL INC AND CONTINENTAL GRAIN CO ARE SURE TO PROTEST DESPITE SUCH GLITCHES THE GENERAL REACTION REMAINS POSITIVE DOING BUSINESS WILL BE MORE PREDICTABLE AND RELIABLE AND FEW COMPANIES COMPLAIN WHEN RISK IS REDUCED 9401070142 940107 QUARTERLY MUTUAL FUNDS REVIEW GETTING STARTED INVESTORS ARE FLOCKING TO FUND COUSINS VARIABLE ANNUITIES BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL GONE ARE THE DAYS WHEN YOU COULD TALK ABOUT MUTUAL FUNDS WITHOUT MENTIONING THEIR TAXSHELTERED COUSINS VARIABLE ANNUITIES DESPITE THE HANDICAP OF A NAME THAT SOUNDS LIKE A GASTROINTESTINAL DISORDER VARIABLE ANNUITIES ARE SHAPING UP AS THE HOTTESTSELLING INVESTMENT OF THE '90S THE MARKET IS GROWING AT A RATE THAT MATCHES THE 1980S GROWTH OF MUTUAL FUNDS SAYS KURT CERULLI A BOSTON FINANCIALPRODUCTS CONSULTANT IN 1993 INVESTORS SHOVELED MORE THAN 40 BILLION INTO VARIABLE ANNUITIES UP FROM 23 BILLION IN 1992 SO WHAT ARE THESE FORBIDDINGLY NAMED CREATURES THEY ARE CALLED VARIABLE BECAUSE THEIR RETURNS ZIGZAG UNLIKE THE NEVERCHANGING YIELD OF A FIXED ANNUITY HERE IS A RUNDOWN OF THEIR PLUSES NOTABLY TAX DEFERRAL AND MINUSES FEES FEES FEES IN THE PAST INVESTORS WHO WANTED TO SHELTER EARNINGS ON MUTUAL FUNDS USUALLY WENT ONE OF TWO ROUTES THEY BOUGHT TAXFREE MUNICIPALBOND FUNDS OR THEY PUT MUTUAL FUNDS INTO AN IRA WHERE EARNINGS COULD GROW TAXDEFERRED NOW MANY ARE TURNING INSTEAD TO VARIABLE ANNUITIES ESPECIALLY IF THEY HAVE A BIG SUM TO SHELTER OR WANT TO TRADE STOCK FUNDS WITHOUT GENERATING AN IMMEDIATE BLIZZARD OF PAPERWORK AND TAXES WHILE VARIABLE ANNUITIES MAY SEEM MYSTERIOUS THEIR TAX ADVANTAGES ARE ALMOST IDENTICAL TO THOSE OF NONDEDUCTIBLE IRAS AS WITH AN IRA INVESTORS CAN OPEN A VARIABLE ANNUITY ACCOUNT AT MANY MUTUALFUND COMPANIES BROKERAGE FIRMS INSURANCE COMPANIES AND AT MANY BANKS UNLIKE WITH AN IRA THERE IS NO LIMIT ON CONTRIBUTIONS WHEN IT COMES TO INVESTING IRA INVESTORS CAN CHOOSE AMONG THE UNIVERSE OF MUTUAL FUNDS BUT VARIABLEANNUITY INVESTORS ARE LIMITED TO THE FUNDS OFFERED WITHIN THE VARIABLEANNUITY ACCOUNT THE AVERAGE NUMBER OFFERED IS SEVEN THEY ALSO HAVE ACCESS TO A CDLIKE ACCOUNT THAT PAYS A FIXED RATE OF RETURN WITH VARIABLE ANNUITIES AS WITH IRAS INVESTORS CAN SWITCH THEIR MONEY AMONG THE FUNDS WITHOUT TRIGGERING TAXES AND EARNINGS ARE TAXDEFERRED UNTIL TAKEN OUT WHEN THEY ARE TAXED AS REGULAR INCOME AS WITH AN IRA INVESTORS CAN TAKE THEIR MONEY OUT IN A LUMP SUM AT ANY POINT THEY PAY INCOME TAXES ON THE EARNINGS PLUS A 10 PENALTY IF THEY ARE UNDER AGE 59 1/2 OR THEY CAN TAKE A SYSTEMATIC WITHDRAWAL BASED ON THEIR LIFE EXPECTANCY THE INVESTMENT OPTIONS WITHIN VARIABLE ANNUITIES ARE IN ESSENCE A HALFDOZEN OR MORE MUTUAL FUNDS THIS MAY NOT BE APPARENT TO PEOPLE INITIALLY BECAUSE THE VOCABULARY IS DIFFERENT THE WORD MUTUAL FUND BECOMES SUBACCOUNT IN A VARIABLE ANNUITY AND MUTUAL FUND INVESTORS ACQUIRE SHARES WHILE VARIABLEANNUITY INVESTORS HAVE ACCUMULATION UNITS DON'T COUNT ON SEEING A CHANGE IN THIS TERMINOLOGY SOON THE INDUSTRY ISN'T EAGER FOR TAXHUNGRY REGULATORS TO FOCUS ON HOW OFTEN INVESTORS VIEW THESE PRODUCTS AS TAX SHELTERS RATHER THAN AS THE RETIREMENTSAVINGS PLANS THEY WERE INTENDED TO BE MOREOVER POINTING OUT THE SIMILARITIES TO MUTUAL FUNDS WOULD INVITE INVESTORS TO COMPARE ANNUITIES WITH MUTUAL FUNDS WHICH ARE EASIER TO GET OUT OF AND TYPICALLY LESS EXPENSIVE DESPITE ALL THE GOBBLEDYGOOK THE MECHANICS OF THE SYSTEM ARE ALMOST IDENTICAL TO MUTUAL FUNDS SAYS MR CERULLI INVESTORS CAN MAKE PERIODIC CONTRIBUTIONS OR PUT IN A LUMP SUM THEY CAN SWITCH FUNDS WITH LIMITS ON FREQUENCY THE MINIMUM INITIAL PURCHASE TYPICALLY RANGES FROM 1000 TO 5000 JUST AS WITH MUTUAL FUNDS THE CLOSING PRICES OF THE SECURITIES IN THE FUNDS AT A GIVEN TIME DETERMINE THE VALUE FOR HOLDERS THE OVERALL VALUE OF THE PORTFOLIO DIVIDED BY THE NUMBER OF ACCUMULATION UNITS DETERMINES THE PRICE FOR THE PURCHASE DESPITE THE SIMILARITY TO NONDEDUCTIBLE IRAS AND MUTUAL FUNDS VARIABLE ANNUITIES AREN'T THE SAME AS OWNING MUTUAL FUNDS AND HAVE A FEW KEY DIFFERENCES THAT MAKE THEM UNDESIRABLE FOR MANY INVESTORS FOR ONE THING VARIABLE ANNUITIES ARE LESS EASY TO SHED THAN MUTUAL FUNDS MOST COME WITH SURRENDER CHARGES THAT START AT 7 AND DECLINE TO ZERO ONLY OVER A PERIOD OF YEARS AND BECAUSE THEY BEHAVE LIKE IRAS IF YOU TAKE MONEY OUT BEFORE AGE 59 1/2 YOU'LL PAY A 10 TAX PENALTY IN ADDITION TO INCOME TAXES FURTHERMORE THE TAX ADVANTAGE MAY NOT BE ALL IT'S CRACKED UP TO BE FEW INSURANCE AGENTS OR BROKERS EXPLAIN TO PEOPLE THAT ALL OF THE EARNINGS IN A VARIABLE ANNUITY ARE GOING TO BE TAXED AS INCOME IN CONTRAST CAPITAL GAINS GENERATED IN A MUTUAL FUND ARE TAXED AT THE LOWER 28 CAPITALGAINS RATE BUT PERHAPS THE CRUCIAL DOWNSIDE TO VARIABLE ANNUITIES IS THE HIGHER FEE LEVEL VARIABLE ANNUITIES HAVE ANNUAL INSURANCECOMPANY FEES THAT AVERAGE 127 ANNUALLY SOME OF THE NEWER PRODUCTS ARE CHARGING 140 OR MORE THIS IS IN ADDITION TO THE ANNUAL INVESTMENT MANAGEMENT FEES WHICH AVERAGE 073 FOR US STOCK FUNDS ENSCONCED IN VARIABLE ANNUITIES TOTAL FEES IN VARIABLE ANNUITIES WITH HIGHERTHANAVERAGE FUND AND INSURANCE EXPENSES CAN EASILY TOP 25 A YEAR THOSE FEES CAN BE QUITE A DRAG ON RETURNS IN THE CASE OF A FUND WITH BONDS YIELDING 6 FOR INSTANCE A TOTAL OF 25 IN ANNUAL VARIABLEANNUITY FEES WOULD EAT UP MORE THAN 40 OF THE ANNUAL YIELD SUCH ADDED EXPENSES ERASE THE ADVANTAGE OF THE TAXDEFERRAL FOR AT LEAST A DECADE AND INVESTORS WHO PUT THEIR MONEY INTO BOND FUNDS MONEYMARKET FUNDS AND FIXEDRETURN ACCOUNTS WHICH TEND TO HAVE LOWER RETURNS THAN STOCK FUNDS OVER TIME COULD WAIT 20 YEARS OR MORE BEFORE THE ADVANTAGE OF THE TAXDEFERRAL GIVES THEM A HIGHER RETURN THAN THEY WOULD HAVE RECEIVED IN A TAXABLE MUTUAL FUND ASSUMING SIMILAR PERFORMANCE HOWEVER THE INSURANCE EXPENSES DO PAY FOR VARIABLEANNUITY FEATURES THAT IRAS DON'T HAVE WHICH MAY APPEAL TO SOME INVESTORS SUCH AS THE GUARANTEED DEATH BENEFIT THIS GUARANTEES THAT IF AN INVESTOR DIES THE BENEFICIARY WILL RECEIVE NO LESS THAN THE ORIGINAL AMOUNTS THE INVESTOR PUTS INTO THE ACCOUNT OVER TIME MINUS WITHDRAWALS IF AN INVESTOR PUT 50000 INTO AN ACCOUNT AND HE LOSES MONEY AND DIES HIS HEIR WOULD RECEIVE THE FULL 50000 OF COURSE IF HIS FUNDS PERFORMED WELL THE HEIR WOULD RECEIVE THE 50000 PLUS THE EARNINGS TO THAT POINT SOME INVESTORS MISTAKENLY BELIEVE THAT THE GUARANTEED DEATH BENEFIT PROVIDES LIFE INSURANCE IT DOESN'T OR PROTECTS THEM FROM LOSS IT DOESN'T IF YOU LIVE YOU CAN LOSE MONEY IN VARIABLE ANNUITY FUNDS THE SAME WAY YOU LOSE MONEY IN FUNDS IN YOUR IRA OR ELSEWHERE IN ADDITION VARIABLE ANNUITY INVESTORS CAN USE THE ANNUITY OPTION WHEN THEY DECIDE TO TAKE THE MONEY OUT OF THEIR ACCOUNT IN RETIREMENT BASED ON THEIR LIFE EXPECTANCY AND THE SIZE OF THEIR BALANCE THE INSURANCE COMPANY PAYS OUT A STREAM OF MONEY FROM THE ACCOUNT THAT IS INTENDED TO LAST FOR THE INVESTOR'S LIFETIME IF YOU DON'T NEED THESE FEATURES A VARIABLE ANNUITY MAY NOT MAKE SENSE SHOULD YOU DECIDE THAT YOU WANT THE ABILITY TO RECEIVE YOUR SAVINGS WHEN YOU RETIRE IN ANNUITY PAYMENTS YOU COULD ALWAYS WAIT TO BUY AN ANNUITY AT THAT TIME SIMILARLY IF YOU WANT TO RECEIVE THE MONEY IN YOUR IRA IN ANNUITY PAYMENTS YOU WOULD HAVE TO SET UP AN ANNUITY ACCOUNT WITHIN YOUR IRA WHEN THE TIME COMES BECAUSE OF COST AND ILLIQUIDITY VARIABLE ANNUITIES MAKE SENSE ONLY FOR INVESTORS WHO HAVE MAXED OUT THE CONTRIBUTIONS THEY CAN MAKE TO IRAS AND COMPANY RETIREMENT PLANS WHO FULLY INTEND TO LEAVE THEIR MONEY INTACT FOR AT LEAST A DECADE AND WHO ARE WILLING TO PUT THEIR MONEY INTO FUNDS THAT PROVIDE THE POTENTIAL FOR HIGHER RETURNS WHEN USED AS A GROWTH VEHICLE THE TAXDEFERRAL OUTWEIGHS THE COSTS FOR LONGTERM INVESTORS SAYS MR CERULLI IF AN ANNUITY MAKES SENSE COMPARE FEES PERFORMANCE AND FEATURES START BY GETTING SALES LITERATURE FROM AT LEAST FIVE COMPANIES AND ASK FOR TOTAL RETURNS OVER THREE YEARS LONGER IF AVAILABLE AFTER ALL EXPENSES HAVE BEEN DEDUCTED A USEFUL PUBLICATION THAT CONTAINS THIS INFORMATION ON MOST ANNUITIES IS MORNINGSTAR'S VARIABLE ANNUITY REPORT 8008765005 A SINGLE ISSUE IS 15 A FEW NOLOAD MUTUAL FUND COMPANIES SELL ANNUITIES DIRECTLY TO CONSUMERS RATHER THAN THROUGH BROKERS OR AGENTS WHICH RESULTS IN LOWER COSTS FIDELITY INVESTMENTS' FIDELITY RETIREMENT RESERVES SCUDDER STEVENS & CLARK'S SCUDDER HORIZON AND VANGUARD GROUP'S VARIABLE ANNUITY PLAN HAVE ANNUAL INSURANCE EXPENSES OF 100 063 AND 055COMPARED WITH AN AVERAGE OF 127 IN ADDITION VANGUARD AND SCUDDER ALSO HAVE LOWERTHANAVERAGE FUND EXPENSES AND NO SURRENDER CHARGES THUS THE TOTAL ANNUAL COSTS FOR A US STOCK FUND IN THESE THREE ANNUITIES ARE 175 AT FIDELITY 133 AT SCUDDER AND 098 AT VANGUARD 9401070141 940107 TAIWAN'S SEC SEEKS TO RAISE THE CEILING ON FOREIGN INVESTING SPECIAL TO THE WALL STREET JOURNAL TAIPEI TAIWAN TAIWAN'S SECURITIES AND EXCHANGE COMMISSION PROPOSED TO RAISE THE CEILING OF FOREIGN INVESTMENTS TO 12 BILLION FROM 5 BILLION SEC CHAIRMAN DAY LININ SAID HE STRONGLY SUPPORTED THE PLAN OF OPENING TAIWAN'S MARKET WIDER TO FOREIGN INSTITUTIONAL INVESTORS THE LATEST PROPOSED CEILING OF 12 BILLION ROUGHLY 10 OF MARKET VALUE OF TAIWAN'S LISTED SHARES COMPARED WITH THE SEC'S PROPOSAL LAST MONTH TO DOUBLE THE CEILING TO 10 BILLION THE NEW TAIWAN DOLLAR APPRECIATED ABOUT 131 IN THE PAST THREE MONTHS MUCH LOWER THAN OTHER MAJOR CURRENCIES MR DAY SAID MR DAY MADE THE REMARKS FOLLOWING AN ASIAN WALL STREET JOURNAL REPORT YESTERDAY THAT TAIWAN'S CENTRAL BANK IS SLOWING THE FLOW OF FOREIGN CAPITAL INTO THE COUNTRY'S BOOMING STOCK MARKET OVER CONCERNS ABOUT RECENT APPRECIATION OF THE LOCAL CURRENCY AT THE END OF 1993 FOREIGN INSTITUTIONS HAD REMITTED ABOUT 27 BILLION INTO TAIWAN FOR EQUITY INVESTMENTS EIGHTEEN FOREIGN INSTITUTIONS ARE AWAITING APPROVAL TO INVEST SOME 136 BILLION IN TAIWAN ON THE FOREIGNEXCHANGE MARKET THE US DOLLAR ENDED SLIGHTLY WEAKER AT 265690 NT DOLLARS IN HEAVY TRADING YESTERDAY DEALERS SAID THE CENTRAL BANK BOUGHT ABOUT 80 MILLION TO PREVENT A SHARP RISE OF THE NT DOLLAR 9401070140 940107 INTERNATIONAL METALLGESELLSCHAFT REVISES ITS LOSSES SHARPLY UPWARD BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT METALLGESELLSCHAFT AG SAID IT IS SADDLED WITH A CUMULATIVE 33 BILLION MARKS 19 BILLION IN EXISTING AND POTENTIAL LOSSES NEARLY 10 TIMES THE ORIGINAL LOSS REPORTED FOR THE MOST RECENT FISCAL YEAR BY PREVIOUS MANAGEMENT KAJO NEUKIRCHEN THE COMPANY'S NEW CHIEF EXECUTIVE OFFICER SAID YESTERDAY THAT THE COMPANY WOULD BE FORCED INTO INSOLVENCY PROCEEDINGS UNLESS BANK CREDITORS FORMALLY APPROVE A 32 BILLIONMARK RESCUE PACKAGE BY A JAN 12 DEADLINE METALLGESELLSCHAFT REVISED ITS LOSS FOR THE FISCAL YEAR ENDED SEPT 30 1993 TO SHOW A DEFICIT OF NEARLY 18 BILLION MARKS COMPARED WITH ITS ORIGINAL REPORT OF A 347MILLIONMARK LOSS IN ADDITION THE COMPANY SAID IT STANDS TO SHOW LOSSES OF AS MUCH AS AN ADDITIONAL 15 BILLION MARKS FROM EXPOSURE IN OIL MARKETS MR NEUKIRCHEN CLAIMED THAT THE COMPANY'S EXTREME FINANCIAL PROBLEMS COULDN'T BE OVERCOME BY CAPITAL INCREASES ALONE HE SAID THE COMPANY WOULD HAVE TO REDUCE LABOR COSTS BY BETWEEN 600 MILLION AND 700 MILLION MARKS THROUGH STAFF CUTS AND DIVESTITURES AFTER DROPPING 38 IN VALUE SINCE MIDNOVEMBER METALLGESELLSCHAFT'S STOCK WAS SUSPENDED FROM TRADING YESTERDAY A DAY AFTER THE COMPANY SAID IT WON A POSITIVE RESPONSE FROM BANK CREDITORS FOR ITS PLAN TO AVERT INSOLVENCY THAT PLAN ENVISIONS RAISING 14 BILLION MARKS IN NEW EQUITY AND A 13 BILLION MARK DEBTFOREQUITY SWAP BY THE BANKS WHICH ALSO ARE BEING ASKED FOR A FRESH 500 MILLION MARK CREDIT LINE A GERMAN BANKER INVOLVED IN THE TALKS SAID METALLGESELLSCHAFT'S TOP FIVE BANK CREDITORS ARE DEUTSCHE BANK BAYERISCHE LANDESBANK CREDIT LYONNAIS OF FRANCE NORDDEUTSCHE LANDESBANK AND SOCIETE GENERALE OF FRANCE 9401070139 940107 QUARTERLY MUTUAL FUNDS REVIEW THESE FUND INVESTORS LOOK TO A HIGHER POWER BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL IS THIS INVESTING FOR THE PROPHET OR THE PROFIT INVESTORS ARE BEING OFFERED AN INCREASING NUMBER OF MUTUAL FUNDS WITH TIES TO RELIGIOUS GROUPS AND THESE FUNDS ARE DOING FAIRLY WELL FOR INVESTORS FIRE AND BRIMSTONE TEND TO MOTIVATE A LOT OF PEOPLE AND THERE'S NO BETTER SALESMAN OR SALES TOOL THAN THE PULPIT SAYS LOUIS HARVEY PRESIDENT OF DALBAR FINANCIAL SERVICES A BOSTON FUNDRESEARCH FIRM IT'S JUST ANOTHER WAY TO GET THE MESSAGE OUT TWO NEW FUNDS RECENTLY HIT THE MARKET DALLASBASED AQUINAS FUNDS A SUBSIDIARY OF THE CATHOLIC FOUNDATION AND MMA PRAXIS MUTUAL FUNDS AN OFFSHOOT OF MENNONITE MUTUAL AID IN GOSHEN IND BUT THERE ARE SOME LUTHERANS AND MUSLIMS WHO HAVE BEEN IN THE MUTUALFUND BUSINESS FOR A LONG TIME THE MINNEAPOLISBASED LUTHERAN BROTHERHOOD FIRST OFFERED A MUTUAL FUND 23 YEARS AGO AND THE AAL MUTUAL FUNDS ASSOCIATED WITH THE AID ASSOCIATION FOR LUTHERANS IN APPLETON WIS FIRST SOLD SHARES IN 1987 FOR INVESTORS ADHERING TO ISLAMIC PRINCIPLES THERE'S THE SEVENYEAROLD AMANA MUTUAL FUNDS TRUST'S INCOME FUND WHICH AS IT HAPPENS IS MANAGED BY AN EPISCOPALIAN MOST OF THESE MUTUAL FUNDS AREN'T JUST IN THE BUSINESS OF INVESTING FOR A PROFIT MANY FOLLOW STRICT RULES OF SOCIALLY RESPONSIBLE INVESTING THAT COMPLY WITH THEIR RELIGIOUS BELIEFS TO HELP PRESERVE PEACE THE MENNONITE'S MMA PRAXIS FUNDS FOR INCOME AND FOR GROWTH BOTH ARE RESTRICTED FROM INVESTING IN MILITARY CONTRACTORS AND ARMSPRODUCTION COMPANIES TREASURY BONDS WHICH COULD BE USED TO FINANCE MILITARY OPERATIONS ALSO ARE BANNED BONDS ARE BLASPHEMOUS FOR THE MUSLIMS TOO FOR VERY DIFFERENT REASONS IN ACCORDANCE WITH ISLAMIC PRINCIPLES INVESTORS CAN'T RECEIVE ANY INTEREST FROM LOANTYPE AGREEMENTS SO BANK STOCKS ARE OFF LIMITS AND THE FUND CAN'T HOLD ANY ENTERTAINMENT COMPANIES THAT HAVE XRATED BUSINESS BUT THE MUSLIMS ARE FREE TO OWN MILITARYRELATED STOCKS BOTH THE MUSLIM AND THE MENNONITE MUTUAL FUNDS CAN'T HAVE GAMBLING OR ALCOHOL INVESTMENTS THE MENNONITES ALSO SHUN TOBACCO STOCKS I'M SURE SOME MENNONITES SMOKE AND DRINK SAYS JB MILLER VICE PRESIDENT OF MENNONITE MUTUAL AID BUT THE OFFICIAL STANCE IS TO TEACH AGAINST IT SO WE DON'T BUY THE STOCKS PRAXIS MUTUAL FUNDS HAVE A BACKEND SALES CHARGE OR LOAD OF 5 IF INVESTORS WITHDRAW WITHIN THE FIRST YEAR THE LOAD DECLINES ONE PERCENTAGE POINT EVERY YEAR UNTIL THERE IS NO CHARGE ANNUAL MANAGEMENT FEES ARE 11 FOR THE INCOME FUND AND 175 FOR THE GROWTH FUND THE CATHOLICS' AQUINAS FUNDS DON'T HAVE ANY INDUSTRYWIDE TYPE OF PROHIBITIONS THESE FUNDS COULD EVEN HOLD SHARES IN A DRUG COMPANY THAT MIGHT HAVE A CONTRACEPTIVE PRODUCT WHICH IS AGAINST CATHOLIC TEACHING SAYS BERNARD DIFIORE EXECUTIVE DIRECTOR OF THE CATHOLIC FOUNDATION IF THE FUNDS OWN STOCK IN A COMPANY THAT IS AGAINST CATHOLIC BELIEFS HOWEVER INVESTORS AND OFFICERS OF THE FUND WILL SEND FORMAL PETITIONS TO COMPANY OFFICIALS WE THINK WE CAN ACCOMPLISH MORE BY TELLING MANAGEMENT RATHER THAN AVOIDING INVESTMENTS MR DIFIORE SAYS THE LUTHERANS DON'T HAVE AN OFFICIAL LIST OF INVESTING RESTRICTIONS BUT AS A PRIVATE POLICY THE MANAGERS DON'T INVEST IN GAMBLING AND TOBACCO STOCKS OR COMPANIES WHOSE PRIMARY BUSINESS INVOLVES ALCOHOL SAYS JIM WALLINE HEAD OF LUTHERAN BROTHERHOOD'S MUTUAL FUNDS WHILE SEVERAL OF THE FUNDS ARE OPEN TO INVESTORS FROM ANY RELIGION SOME HAVE CONSTRAINTS ON WHO CAN INVEST FOR EXAMPLE THE LUTHERAN BROTHERHOOD A FRATERNAL ORGANIZATION MARKETS EXCLUSIVELY TO LUTHERANS RELIGION ASIDE THESE FUNDS HAVE A LOT IN COMMON ALL HAVE A RELATIVELY LOWRISK APPROACH TO INVESTING AND AVERAGE TO ABOVEAVERAGE RETURNS ANALYSTS SAY THERE IS NO REASON WHY A WELLMANAGED FUND OF THIS VARIETY COULDN'T BE A COMPETITIVE PRODUCT SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER SKEPTICS SAY THAT THE INVESTING IS LIMITED BUT THE EVIDENCE OR PERFORMANCE ISN'T CONCLUSIVE ONE WAY OR THE OTHER IN 1993 THE AMANA INCOME FUND WAS UP 116 AND OVER FIVE YEARS THE FUND HAS SHOWN AN ANNUAL RETURN OF 996 THE FUND'S 105 MILLION IN ASSETS ARE SPREAD AMONG MORE THAN A FEW DOZEN STOCKS IT HOLDS LARGE POSITIONS IN WASHINGTON WATER POWER USXUS STEEL GROUP ARCO CHEMICAL AND PACIFIC TELESIS GROUP IT'S A NOLOAD FUND WITH ANNUAL OPERATING EXPENSES OF 158 OUR BIGGEST LIMITATION IS NOT BEING ABLE TO BUY BANK STOCKS AND INSURANCE STOCKS SAYS NICHOLAS KAISER THE FUND'S MANAGER AND PRESIDENT OF SATURNA CAPITAL CORP IN BELLINGHAM WASH WHICH ACTS AS THE ADVISER THE AMANA MUTUAL FUNDS TRUST HAS PLANS TO OFFER A GROWTH PORTFOLIO WHICH WILL INVEST MORE IN TECHNOLOGY AND MEDICALRELATED STOCKS OUR GOAL ISN'T TO BE NO 1 MR KAISER SAYS IT'S TO GET A GOOD DECENT RETURN AND GIVE MUSLIMS A WAY TO INVEST ACCORDING TO THE KORAN MR KAISER CONSULTS WITH NORTH AMERICAN ISLAMIC TRUST WHOSE MEMBERS HOLD SOME SPOTS ON THE FUND'S BOARD TO ENSURE THE FUND MEETS THE FAITH'S REQUIREMENTS AMONG THE LUTHERAN BROTHERHOOD'S FAMILY OF SIX FUNDS THE LUTHERAN BROTHERHOOD FUND HOLDING 525 MILLION IN ASSETS WAS UP 87 IN 1993 AND 1364 ANNUALLY FOR THE PAST FIVE YEARS THIS FUND HAS A LOAD OF 5 AND ANNUAL EXPENSES OF 11 AAL CAPITAL GROWTH FUND WAS UP 61 FOR 1993 AND HAS AN ANNUAL AVERAGE RETURN OF 138 FOR THE PAST FIVE YEARS AAL MUTUAL FUNDS WHICH LIKE MANY SIMILAR FUNDS HAS MONEY MANAGERS OUTSIDE THE RELIGIOUS ORGANIZATION PICKING THE INVESTMENTS CURRENTLY OFFERS FIVE DIFFERENT FUNDS SMALL STOCKS CAPITAL GROWTH BONDS MUNICIPAL BONDS AND MONEYMARKET INSTRUMENTS THE FUNDS HAVE A LOAD OR UPFRONT SALES CHARGE FEE OF 475 AND OPERATING EXPENSES RANGING FROM 1 TO 2 DEPENDING ON THE FUND THE CATHOLICS ALREADY ARE MANAGING MONEY FOR NONPROFIT GROUPS WITH SOME SUCCESS THE CATHOLIC FOUNDATION'S MR DIFIORE SAYS THE 100 MILLION IN THE CATHOLIC COMMON TRUST FUND FOR NONPROFIT ORGANIZATIONS HAS BEEN MANAGED IN THREE DIFFERENT AREAS EQUITY INCOME GROWTH STOCKS AND FIXED INCOMESIMILAR AREAS WHERE THE NEW FUNDS WILL INVEST THE TRUST'S OUTSIDE MANAGERS PRODUCED A RETURN OF 139 FOR 1993 AQUINAS FUNDS HAS NO LOAD BUT HAS ANNUAL OPERATING EXPENSES RANGING FROM 1 TO 165 ANY PROFITS FROM THE FEES WILL BE DONATED TO THE CATHOLIC FOUNDATION TO BE DISTRIBUTED TO CHARITABLE ORGANIZATIONS MENNONITE MUTUAL AID ALSO HAS BEEN MANAGING MONEY FOR NONPROFIT ORGANIZATIONS FOR A LONG TIME AND SPECIFICALLY SET UP THE FUNDS AFTER RECEIVING REQUESTS ASKING FOR INVESTMENT ADVICE MENNONITE MUTUAL AID REPORTS THAT ITS STOCK PORTFOLIO HAS HAD A COMPOUNDED ANNUAL RATE OF RETURN OF 1716 IN THE PAST EIGHT YEARS I DON'T WANT TO GIVE THE IMPRESSION THAT THE NUNS HAVE A LOT OF MONEY UNDER THEIR MATTRESSES SAYS MR DIFIORE FROM THE CATHOLIC FOUNDATION BUT THERE ARE A LOT OF MEMBERS OF THESE ORGANIZATIONS THAT LIKE THE WAY WE'VE INVESTED AND WANT TO BE INVOLVED PERSONALLY 9401070138 940107 EXGREEK ACTRESS TAKES UP THE ISSUE OF EUROPEAN FILMS BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL ATHENS GREECE NEGOTIATORS FROM 117 COUNTRIES EVENTUALLY DECIDED TO SIDESTEP THE EMOTIONAL ISSUE OF FILMS IN THE JUSTCOMPLETED WORLD TRADE TALKS BUT A FORMER ACTRESS SAID SHE HAS NO INTENTION OF LETTING THE ISSUE DIE MELINA MERCOURI THE CULTURE MINISTER IN THE NEWLY RETURNED GREEK SOCIALIST GOVERNMENT SAID SHE HAS GREAT CONCERNS THAT EUROPE'S AUDIOVISUAL SECTOR COULD FACE NEW ASSAULTS FROM THE US OR ELSEWHERE DESPITE THE DECISION TO EXCLUDE THAT INDUSTRY FROM THE URUGUAY ROUND OF TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE US AND EUROPEAN UNION FORMERLY CALLED THE EUROPEAN COMMUNITY CLASHED DURING THE TRADE TALKS OVER QUOTAS AND LEVIES ON US FILMS IN EUROPE EUROPE BELIEVES ITS PROTECTION OF THE INDUSTRY IS VITAL TO PRESERVE COUNTRIES' CULTURAL IDENTITY THIS IS A QUESTION THAT COULD POP UP AGAIN IN FOUR OR SIX YEARS MS MERCOURI KNOWN FOR THE MOVIE NEVER ON SUNDAY TOLD JOURNALISTS IT WORRIES ME THAT WE DON'T HAVE ANYTHING FINAL SHE SAID THAT GREECE WHICH ASSUMED THE ROTATING EU PRESIDENCY ON JAN 1 PLANNED TO CALL A SPECIAL APRIL MEETING OF EU OFFICIALS RESPONSIBLE FOR CULTURAL ISSUES TO DISCUSS THE EUROPEAN FILM INDUSTRY'S FUTURE WE MUST SHOW THE WORLD THAT THERE ARE OUTSTANDING FILM DIRECTORS IN EUROPE SHE SAID IT IS NOT PERMISSIBLE TO ALLOW THE EUROPEAN FILM INDUSTRY TO DIE AND IT IS NOT GOING TO DIE THE MINISTER SAID THERE WERE NO SECRET WEAPONS TO REVERSE THE EUROPEAN FILM INDUSTRY'S SAGGING FORTUNES BUT PLEDGED TO PROPOSE AN EU PROGRAM THAT WOULD ENCOURAGE SOME CINEMAS IN LARGE CITIES TO RESERVE THEIR SCREENS FOR EUROPEANMADE FILMS RATHER THAN US BLOCKBUSTERS SUCH AS JURASSIC PARK THE EUROPEAN COMMISSION WHICH IS PREPARING A STUDY PAPER ON THE FILM INDUSTRY IS LEANING TOWARD A SIMILAR SUBSIDY SCHEME IN ADDITION MS MERCOURI CALLED FOR MORE CINEMATIC COPRODUCTIONS AMONG SEVERAL EUROPEAN COUNTRIES ALTHOUGH MANY FILM CRITICS SAY THE RECORD OF SUCH PRODUCTIONS TO DATE HAS BEEN POOR BY INVOLVING SEVERAL COUNTRIES THE CRITICS SAY THE FILMS OFTEN FAIL TO PRESENT AN ACCURATE PICTURE OF ANY OF THOSE NATIONS 9401070137 940107 EMPLOYERS CASUALTY TEXAS INSURANCE FIRM IS DECLARED INSOLVENT AUSTIN TEXAS AP EMPLOYERS CASUALTY CO A DALLASBASED INSURANCE COMPANY WITH OPERATIONS NATIONWIDE WAS DECLARED INSOLVENT IN THE SECONDLARGEST PROPERTYCASUALTY COMPANY FAILURE IN TEXAS HISTORY EMPLOYERS CASUALTY WAS PLACED INTO TEMPORARY RECEIVERSHIP BY STATE DISTRICT JUDGE JEANNE MEURER HERE WHO ORDERED THE COMPANY'S BANK ACCOUNTS FROZEN THE TEXAS PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION WILL ASSUME RESPONSIBILITY FOR PAYING TEXANS' COVERED CLAIMS THE TEXAS DEPARTMENT OF INSURANCE SAID POLICYHOLDERS OUTSIDE TEXAS ARE PROTECTED BY GUARANTY ASSOCIATIONS OF THE STATES WHERE THEY LIVE THE DEPARTMENT SAID EMPLOYERS CASUALTY OPERATED IN 49 STATES AND SEVERAL FOREIGN COUNTRIES NATIONWIDE THE COMPANY'S 18900 OPEN CLAIMS TOTAL 343 MILLION IN NET EXPOSURE WHICH IS UNPAID CLAIMS MINUS FUNDS DEPOSITED WITH STATE INSURANCE REGULATORS AS SECURITY TEXAS ACCOUNTS FOR 82 OF THE TOTAL WORKERS' COMPENSATION ACCOUNTED FOR ABOUT HALF OF EMPLOYERS CASUALTY'S BUSINESS THE COMPANY ALSO SOLD GENERALLIABILITY PRIVATE PASSENGER AND COMMERCIAL AUTOLIABILITY MEDICALMALPRACTICE AND HOMEOWNERS INSURANCE ON MARCH 9 1992 THE COMPANY WAS PLACED IN CONSERVATORSHIP AND PROHIBITED FROM WRITING NEW POLICIES IT HALTED POLICY RENEWALS AFTER A ONEYEAR PERIOD WHILE EMPLOYERS CASUALTY WAS IN CONSERVATORSHIP MANAGEMENT HIRED BY A COURTAPPOINTED OFFICIAL REDUCED THE COMPANY'S STAFF TO 320 FROM 1200 AND SOUGHT INFUSIONS OF CAPITAL TO REVIVE THE COMPANY THOSE EFFORTS FAILED HOWEVER LEADING TO THE DECISION TO SEEK RECEIVERSHIP THE TEXAS INSURANCE DEPARTMENT SAID THE FAILURE OF THE COMPANY RANKS SECOND IN SIZE IN TEXAS TO THE 1991 INSOLVENCY OF TEXAS EMPLOYERS INSURANCE ASSOCIATION 9401070136 940107 QUARTERLY MUTUAL FUNDS REVIEW NONPROFIT HOSPITAL WORKERS CAN MOVE ASSETS NEW YORK HERE'S A TIP FOR MUTUALFUND INVESTORS WHO TEACH OR WORK FOR NONPROFITS AND HOSPITALS IF YOU HAVE A 403B PLAN YOU MAY BE ABLE TO MOVE YOUR ACCUMULATED ASSETS OUT OF IT TO THE MUTUALFUND COMPANY OF YOUR CHOICE YOU CAN DO THIS EVEN IF YOU DON'T CHANGE JOBS AND EVEN IF THE MUTUALFUND COMPANY YOU WANT TO PUT YOUR MONEY INTO ISN'T ON THE LIST APPROVED BY YOUR SCHOOL DISTRICT OR EMPLOYER THE CATCHES YOU CAN TRANSFER ONLY YOUR ACCUMULATED SAVINGS ALREADY IN THE ACCOUNT NOT NEW MONEY YOU MAY HAVE TO PAY SURRENDER PENALTIES WHICH MOST ANNUITIES IMPOSE AND IF YOUR EMPLOYER HAS PUT MONEY INTO YOUR ACCOUNT THE DEAL IS OFF TO MAKE A TAXFREE TRANSFER YOU MERELY CONTACT THE MUTUALFUND COMPANY OR BROKERAGE FIRM AT WHICH YOU WANT TO OPEN A 403B7 CUSTODIAL TRANSFER ACCOUNT IT WILL SEND YOU AN APPLICATION AND WILL ARRANGE THE TRANSFER WHY MOVE THE MONEY TO GET BETTER RETURNS LOWER FEES AND MORE CONTROL OVER YOUR MONEY BEFORE DECIDING COMPARE THE TOTAL ANNUAL FEES AND PERFORMANCE OF THE ANNUITIES WHERE YOUR 403B MONEY CURRENTLY LIVES WITH THOSE OF THE MUTUAL FUNDS TO WHICH YOU ARE CONSIDERING SWITCHING ONE TACK GET THE VARIABLE ANNUITY PERFORMANCE REPORT AND THE MUTUAL FUND PERFORMANCE REPORT 15 EACH FROM MORNINGSTAR INC 8008765005 9401070135 940107 POLITICS & POLICY TALBOTT'S ABIDING PASSION FOR RUSSIA SHAPES HIS CAREER AND CLINTON ADMINISTRATION'S POLICY BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON STROBE TALBOTT WAS ALWAYS ONE OF THE ANOINTED IN 1967 WHEN NEW YORK TIMES COLUMNIST JAMES RESTON WANTED TO EXPLAIN THE AMERICAN ELITE'S INCREASING DISCOMFORT WITH THE WAR IN VIETNAM HE VISITED YALE AND INTERVIEWED AN EARNEST 21YEAROLD JUNIOR THE STROBE TALBOTTS AT YALE MR RESTON WOULD WRITE MIGHT NOT BE MARCHING BUT THEIR SOLEMN AND CLEANCUT DISSENT MAY BE MUCH MORE IMPORTANT THAN THE SIGNCARRYING PROTESTERS ON THE FRONT PAGE BUT IT WAS THREE YEARS LATER IN A SPARELY FURNISHED ROW HOUSE IN OXFORD ENGLAND THAT HIS LIFE COURSE WAS FIRMLY SET MR TALBOTT TOILED THERE IN THE PREDAWN HOURS SECRETLY TRANSLATING THE MEMOIRS OF OUSTED SOVIET LEADER NIKITA KHRUSHCHEV SUSTAINED BY SCRAMBLED EGGS AND TEA COOKED UP BY HIS HOUSEMATE BILL CLINTON MR TALBOTT'S DRIVE AND THAT RHODES SCHOLAR FRIENDSHIP HAS WON HIM A POWERFUL PLACE IN THE CLINTON ADMINISTRATION FIRST AS THE TOP RUSSIA STRATEGIST AND SOON AS THE NO 2 AT THE STATE DEPARTMENT MANY IN WASHINGTON SEE HIM AS THE SECRETARY OF STATE IN WAITING BUT IT IS RUSSIA THAT HAS BEEN MR TALBOTT'S PASSION LIFE'S WORK AND MAGNIFICENT OBSESSION SINCE HE WAS A TEENAGER HE HAS PORED OVER RUSSIAN POETRY FOR TWO DECADES HE HAS WRITTEN ABOUT THE WORST AND BEST OF USRUSSIAN RELATIONS HE TOOK HIS FAMILY CAMPING IN SIBERIA AND DESPITE THE RUINOUS LEGACY OF COMMUNISM HE IS CONVINCED THAT DEMOCRACY CAN SUCCEED IN RUSSIA THOUGH IT NEVER HAS BEFORE THAT CONVICTION HAS HAD A POWERFUL EFFECT ON PRESIDENT CLINTON WHO HAS INVESTED HUGE AMOUNTS OF CASH AND PRESTIGE IN RUSSIA AND ITS PRESIDENT BORIS YELTSIN AND CONTINUES TO INVEST DESPITE SUCH SETBACKS AS THE STRONG SHOWING BY RUSSIAN FASCISTS AND COMMUNISTS IN DECEMBER'S PARLIAMENTARY ELECTIONS MR CLINTON WILL REAFFIRM THAT SUPPORT MR TALBOTT'S PHRASE IS NOW MORE THAN EVER NEXT WEEK WHEN HE GOES TO MOSCOW FOR HIS SECOND SUMMIT WITH MR YELTSIN TO SOME CRITICS THE ELECTION RESULTS AND MR TALBOTT'S FAILURE TO PREDICT THEM ARE PROOF EITHER OF HIS NAIVETE ABOUT RUSSIA OR A CAPACITY FOR SELFDELUSION I DON'T REALLY THINK STROBE IS NAIVE OR ROMANTIC ABOUT WHAT'S GOING ON IN RUSSIA SAYS MARSHALL GOLDMAN ASSOCIATE DIRECTOR OF HARVARD'S RUSSIAN RESEARCH CENTER HE'S JUST SO COMMITTED TO MAKING IT WORK THAT HE'LL BLIND HIMSELF AND BLIND OTHERS WHEN THINGS GO WRONG DAVID SATTER AN OLD OXFORD FRIEND OF MR TALBOTT'S AND MR CLINTON'S WHO SPENT YEARS IN MOSCOW AS A REPORTER SAYS FOR ALL MY AFFECTION FOR STROBE THEIR POLICY IS ASCRIBING AMERICAN ATTRIBUTES TO RUSSIA WHERE THEY DON'T APPLY ON SEPT 21 JUST BEFORE THE NEWS BROKE THAT MR YELTSIN WAS DISBANDING HIS PARLIAMENT MR TALBOTT WAS ASSURING A CONGRESSIONAL COMMITTEE ABOUT THE NORMALIZATION OF POLITICS IN RUSSIA AND UKRAINE WHERE LEGISLATORS GET UP AND YELL AND SCREAM BUT THEY DON'T HAVE TO WORRY ABOUT BEING TAKEN AWAY IN THE MIDDLE OF THE NIGHT WITHIN THE ADMINISTRATION MR TALBOTT'S ZEAL HAS SOMETIMES CAUSED A STIR A WIDELY QUOTED REMARK FOLLOWING RUSSIA'S ELECTIONS THAT MOSCOW NEEDED LESS SHOCK AND MORE THERAPY SPARKED A FUROR AT THE TREASURY DEPARTMENT WHERE OFFICIALS FEARED MOSCOW WOULD TAKE IT AS AN INVITATION TO BACK OFF REFORMS IT WASN'T A WELLCHOSEN LOCUTION SAYS A SENIOR US OFFICIAL WITH ECONOMICS NOW CENTRAL TO RUSSIA'S SUCCESS AND MR TALBOTT AN ECONOMICS NEOPHYTE HE WILL AT LEAST HAVE TO CHOOSE HIS WORDS MORE CAREFULLY ON HIS TRIP PRESIDENT CLINTON WILL CALL FOR MORE SHOCK AND MORE THERAPY MR TALBOTT SAYS HE PLEADS GUILTY TO THE CHARGE OF BEING A ROMANTIC BUT NOT A TRUE BELIEVER IN HIS YEARS OF WRITING FOR TIME MAGAZINE HE SAW SOME OF THE WORST RUSSIA COULD MUSTER AFTER THE KHRUSHCHEV MEMOIRS CAME OUT HE WAS BANNED FOR FIVE YEARS FROM THE SOVIET UNION MY OPTIMISM IS ROOTED NOT IN ROMANCE BUT IN A CLEAREREYED PERCEPTION OF WHAT THE PEOPLE HAVE ACCOMPLISHED IN THE PAST AND WHAT THEY ARE ACCOMPLISHING NOW HE SAYS NELSON STROBRIDGE TALBOTT III WAS RAISED IN COMFORT AND PRIVILEGE OUTSIDE CLEVELAND THIRDGENERATION HOTCHKISS SCHOOL THIRDGENERATION YALE HIS GRANDFATHER WAS A MEMBER OF WALTER CAMP'S FIRST ALLAMERICA FOOTBALL TEAM MR TALBOTT SAYS TWO EVENTS IN HIS EARLY LIFE SPARKED HIS PASSION FOR RUSSIA THE TERROR OF THE 1962 CUBAN MISSILE CRISIS AND A MAGICAL CLASS AT HOTCHKISS IN RUSSIAN LITERATURE IN TRANSLATION BY HIS FRESHMAN YEAR AT YALE MR TALBOTT WAS CLEARLY IN LOVE WITH THE LANGUAGE AND CULTURE IF NOT THE SYSTEM SAYS HIS BROTHERINLAW AND YALE CLASSMATE DEREK SHEARER IN THEIR INTENSIVERUSSIAN CLASS THE STUDENTS WERE REQUIRED TO GIVE REGULAR FIVEMINUTE SPEECHES I WOULD TALK ABOUT CALIFORNIA WHERE I COME FROM MR SHEARER RECALLS AND STROBE WOULD GIVE A TALK I REMEMBER THE TITLE EXACTLY ON THE MYSTIQUE OF THE RUSSIAN SOUL' MR TALBOTT WROTE HIS SENIOR THESIS ON FYODOR TYUTCHEV A 19THCENTURY RUSSIAN LYRIC POET WHOSE VERSE RECENTLY FOUND ITS WAY INTO A SPEECH BY SECRETARY OF STATE WARREN CHRISTOPHER THE POINT OF NO RETURN CAME DURING MR TALBOTT'S SECOND YEAR AT OXFORD WHEN TIME INC HIRED HIM TO TRANSLATE THE SMUGGLED KHRUSHCHEV MEMOIRS SWEARING BOTH HIM AND HIS HOUSEMATES TO STRICT SECRECY THE KHRUSHCHEV PROJECT CHANGED HIS LIFE MARKING HIM AS A YOUNG MAN ON A FAST TRACK WITH AN ABIDING PASSION IRONICALLY THE MEMOIRS WOULD KEEP HIM OUT OF RUSSIA FOR YEARS THE SOVIET GOVERNMENT DENOUNCED THE FIRST VOLUME AS A FORGERY BRANDING MR TALBOTT A SAPLING OF THE CENTRAL INTELLIGENCE AGENCY IN 1974 AS HE WAS GETTING READY TO MOVE TO MOSCOW FOR TIME A SECOND VOLUME WAS PUBLISHED AND THE AUDIO TAPES AUTHENTICATED HE WAS DECLARED PERSONA NON GRATA AND BARRED FROM RUSSIA FOR FIVE YEARS AS LATE AS 1985 HE REMAINED ON AT LEAST ONE KGB LIST ON A TRAIN TRIP TO RUSSIA FROM POLAND MR TALBOTT WAS ROUSTED BY ARMED SOVIET GUARDS AND INTERROGATED FOR SEVERAL HOURS IT WAS THE MIDDLE OF THE NIGHT AND I CAN STILL REMEMBER STROBE IN HIS PAJAMAS AND SLIPPERS BEING MARCHED THROUGH THE SNOW AND SLUSH UP THE TRACK SAYS HIS TRAVELING COMPANION STEPHEN SMITH THEN TIME'S NATION EDITOR EVEN THEN MR TALBOTT NEVER LOST HIS PASSION IN 1987 HE PUBLISHED A POEM IN THE NEW YORKER DESCRIBING A VISIT TO THE UZBEK CAPITAL OF TASHKENT AND THE REFUGE HE FOUND WITH THE AGING WIDOW OF A COMPOSER THE ONLY HOME WHERE I CAN GO IN TASHKENT AT LEAST IS YOURS HERE'S TO YOU MY HOSTESS TO PEACE FRIENDSHIP AND TREASON THERE IS AN APOCRYPHAL TALE ABOUT MR TALBOTT AND WASHINGTON THE PATRICIAN MR TALBOTT BEGAN HIS CONFIRMATION HEARINGS BY INSTRUCTING SENATORS HOW TO PRONOUNCE HIS NAME TAWLBOT NOT TALBIT IN TRUTH MR TALBOTT OFFERED THE ADMONITION IN JEST WHILE PRACTICING FOR HIS HEARINGS WITH AIDES AT THE STATE DEPARTMENT ONE THING YOU LEARN VERY EARLY ON HE SAYS IS NOT TO CONTRADICT SENATORS THERE IS ALSO A CALCULATING SIDE TO MR TALBOTT'S RELENTLESSLY OPTIMISTIC VIEW OF RUSSIA ON FOREIGN POLICY MATTERS HE SAYS AMERICANS LIKE INSTANT GRATIFICATION THEY WANT TO SEE A QUICK FIX SINCE RUSSIA'S TRANSITION TO DEMOCRACY WILL NOT BE PRETTY OR QUICK HE REASONS AMERICANS NEED COAXING AND CHEERLEADING TO STICK WITH THE POLICY MR TALBOTT IS A CONSUMMATE BRIEFER PLAYING DOWN DOUBTS AND FEARS ABOUT RUSSIA WHENEVER THEY ARISE HOURS AFTER PRESIDENT YELTSIN ORDERED THE ATTACK ON THE RUSSIAN PARLIAMENT MR TALBOTT WAS IN FRONT OF THE CNN CAMERAS INSISTING THAT OPPOSITION FORCES HAD PROVOKED THE CONFRONTATION AND THAT THE GOVERNMENT HAD USED ONLY THAT DEGREE OF FORCE THAT WAS ABSOLUTELY NECESSARY SUCH AN APPROACH DOES HAVE ITS DANGERS A PUBLIC BACKLASH COULD ERUPT IF RUSSIA FAILS TO LIVE UP TO THE ROSY VIEW MOSCOW MIGHT ALSO CONCLUDE THAT US SUPPORT IS VIRTUALLY UNCONDITIONAL MR TALBOTT SAYS THAT HE IS FAR STERNER WITH THE RUSSIANS IN PRIVATE FOR REASONS OF SHEER PRAGMATISM PRESIDENT CLINTON ALMOST CERTAINLY WOULD HAVE BEEN A YELTSIN SUPPORTER HE CAME TO OFFICE CONVINCED THAT ONLY WITH A STABLE RUSSIA COULD HE AFFORD TO CHOP THE DEFENSE BUDGET ENOUGH TO FUND HIS DOMESTIC AGENDA WHAT MR TALBOTT HAS PROVIDED IS THE STRATEGY PRESSING FOR CLOSER RUSSIANUS COLLABORATION IN SPACE DEFENSE SCIENCE AND TECHNOLOGY WHEN NECESSARY HE HAS FOUGHT LIKE A TIGER TO DEFEND HIS VISION LAST FALL WHEN MR CHRISTOPHER AND OTHER TOP OFFICIALS WERE LEANING TOWARD EXTENDING PROVISIONAL MEMBERSHIP IN THE NORTH ATLANTIC TREATY ORGANIZATION TO EASTERN EUROPE'S NEW DEMOCRACIES MR TALBOTT POUNDED OUT A SINGLESPACED FIVEPAGE MEMO ARGUING THAT THE MOVE WOULD FEED RUSSIAN PARANOIA AND WEAKEN MR YELTSIN MR CHRISTOPHER AIDES SAY WAS SWAYED AND SO WAS THE PRESIDENT WHERE MR TALBOTT HAS MADE THE BIGGEST DIFFERENCE IS IN KEEPING MR CLINTON COMMITTED TO RUSSIAN REFORM THROUGH A SERIES OF BONECHILLING CRISES THE MORE SEASONED GEORGE BUSH FLINCHED WHEN HE FIRST GOT THE NEWS THAT MIKHAIL GORBACHEV HAD BEEN DEPOSED IN THE AUGUST 1991 COUP ATTEMPT MR CLINTON HAS YET TO FLINCH MR TALBOTT SAYS THEIR FUNDAMENTAL CONFIDENCE IN PRESIDENT YELTSIN HAS NEVER WAVERED BUT HE ADMITS THERE HAVE BEEN HAIRY MOMENTS ONE OF THE MOST WORRISOME CAME ON OCT 3 WHEN RUSSIAN HARDLINERS APPEARED TO BE GAINING CONTROL OF THE MOSCOW STREETS AND THE YELTSIN GOVERNMENT WENT SILENT FOR HOURS SITTING IN HIS STUDY AT HOME WATCHING THE CRISIS UNFOLD ON CNN MR TALBOTT RECALLS HEARING A MOB OF RUSSIAN NATIONALISTS CHANTING KILL THE YIDS SAVE RUSSIA IT ONLY CONFIRMED HIS COMMITMENT TO THE POLICY THE ALTERNATIVE TO REFORM HE SAYS IS THAT CHANTING MOB LESS CLEAR IS HOW MR TALBOTT WILL HANDLE POLICY QUESTIONS OUTSIDE RUSSIA ONCE HE IS CONFIRMED AS DEPUTY SECRETARY OF STATE AS A COLUMNIST HE ADVOCATED AN ACTIVIST FOREIGN POLICY CALLING FOR UNITED NATIONS AND US MILITARY ACTION IN BOSNIA AND SOMALIA THOUGH MR CLINTON SOUNDED THOSE SAME THEMES A YEAR AGO AFTER A SERIES OF SETBACKS HE HAS SETTLED FOR A WEARY REALISM 9401070134 940107 KEMPER SETTLES TWO LAWSUITS AGAINST A UNIT BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL KEMPER CORP OPTED TO SETTLE TWO LAWSUITS AGAINST ITS SECURITIES UNIT INCLUDING ONE THAT YIELDED A PUNISHING 1374 MILLION VERDICT AGAINST THE COMPANY THE OTHER CASE INVOLVED AN EPISODE IN WHICH KEMPER'S SECURITIES UNIT UNSUCCESSFULLY SOUGHT TO HELP AN EVANGELICALORIENTED COLLEGE FOUNDED BY JERRY FALWELL SELL 61 MILLION IN FIRSTMORTGAGE BONDS THE LONG GROVE ILL INSURANCE AND FINANCIAL CONCERN DIDN'T DISCLOSE TERMS OF THE SETTLEMENTS BEYOND NOTING THAT THEY WILL HAVE NO IMPACT ON EARNINGS BECAUSE RESERVES HAD BEEN TAKEN IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY KEMPER SHARES JUMPED 875 CENTS TO 37 IN THE LARGEST CASE KEMPER SAID IT AGREED TO SETTLE ALL CLAIMS ASSERTED BY CONTICOMMODITY SERVICES INC AND CONTI CUSTOMERS THE CONTICOMMODITY CASE IS THE ONE IN WHICH A HOUSTON JURY HAD FOUND IN 1992 AGAINST KEMPER'S PRESCOTT BALL & TURBEN BROKERAGE DIVISION NEW YORKBASED CONTICOMMODITY A NOWINACTIVE UNIT OF CLOSELY HELD CONTINENTAL GRAIN CO FILED SUIT IN 1986 ALLEGING THAT A GOVERNMENT BOND TRADER AT PRESCOTT HAD ENTERED INTO PREARRANGED TRADES WITH A TRADER AT CONTICOMMODITY'S HOUSTON ARBITRAGE OFFICE IT CONTENDED THAT MANY OF THE LOSSES THEN WERE ASSIGNED TO CUSTOMERS OF CONTICOMMODITY THE SUIT ALLEGED THAT THE TRADES OCCURRED FROM 1982 TO 1984 BOTH BEFORE AND AFTER KEMPER'S 1982 ACQUISITION OF PRESCOTT KEMPER DEFENDED THE CASE IN COURT AND IN APRIL 1992 WAS STUNNED BY THE JURY'S 1374 MILLION VERDICT IN A SECOND UNPLEASANT SURPRISE FOR KEMPER THE JUDGE IN THE HOUSTON TRIAL SUBSEQUENTLY DECLINED TO REDUCE THE JURY'S BIG AWARD KEMPER HAS SINCE BEEN APPEALING THE CASE KEMPER ALSO NOTED YESTERDAY THAT IT HAD REACHED SETTLEMENT WITH CONTI CUSTOMERS WHO HAD FILED SEPARATE LITIGATION ON THE MATTER THAT CASE HADN'T YET GONE TO TRIAL KEMPER ALSO REACHED AN OUTOFCOURT SETTLEMENT OF A LAWSUIT FILED BY CHRISTIAN MUTUAL LIFE INSURANCE CO OF CONCORD NH THAT SUIT INVOLVED THE COLLAPSE OF A PLAN BY WHICH LIBERTY UNIVERSITY OF LYNCHBURG VA WAS TO ISSUE THE BONDS WITH KEMPER AS UNDERWRITER THE 1990 OFFERING FAILED TO FIND BUYERS SUBSEQUENTLY CHRISTIAN MUTUAL WHICH HAD LENT MONEY TO LIBERTY EXPECTING TO BE REPAID FROM THE PROCEEDS ALLEGED IN ITS COMPLAINT THAT KEMPER HAD MISREPRESENTED ITS INTENTIONS REGARDING THE OFFERING TRIAL IN THAT CASE HAD BEEN UNDER WAY IN STATE COURT IN NEW HAMPSHIRE BUT HADN'T YET GONE TO THE JURY KEMPER POINTED OUT THAT LIBERTY UNIVERSITY'S CLAIM IN THE MATTER HAD GONE TO ARBITRATION IN 1992 AND THAT A PANEL HAD RULED IN KEMPER'S FAVOR THE SETTLEMENTS REMOVE UNCERTAINTIES THAT KEMPER FACED FOR NEARLY TWO YEARS SAID A COMPANY OFFICIAL SEPARATELY KEMPER SAID THAT IT SOLD ITS MINORITY HOLDING IN CENTRE REINSURANCE HOLDINGS LTD TO MAJORITY HOLDER ZURICH INSURANCE CO AS A RESULT KEMPER SAID IT WILL REALIZE IN THE JUSTENDED FOURTH QUARTER A GAIN OF 378 MILLION OR ABOUT 115 A SHARE THE COMPANY ALSO SAID THAT IT HAS REFINANCED CERTAIN MORTGAGE LOANS AND OTHER REALESTATE INVESTMENTS IN THE PROCESS REDUCING ITS REALESTATERELATED INVESTMENTS BY ABOUT 15 SUCH INVESTMENTS STOOD AT 17 BILLION AS OF SEPT 30 PROCEEDS OF THE REFINANCING WERE REINVESTED IN INVESTMENTGRADE SECURITIES THE COMPANY SAID THE ACTION ENHANCES ITS LIFEINSURANCE SUBSIDIARIES' LIQUIDITY 9401070133 940107 ATTENTION VOTERS ARUBA NASSAU AND JAMAICA ARE NOT IN AMERICA BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL GEOGRAPHIC ILLITERACY REARS ITS UGLY HEAD AGAIN OR MAYBE THE FOLKS IN ATLANTA ARE SIMPLY THINKING WISHFULLY WHATEVER THE CAUSE VALUJET AIRLINES RECEIVED SOME FARFETCHED ENTRIES IN A RECENT CONTEST WHICH PUT THE CHOICE OF A NEW DESTINATION TO A POPULAR VOTE THE STARTUP CARRIER WHOSE BASE OF OPERATIONS IS ATLANTA ASKED ATLANTANS TO CHOOSE A TWELFTH MARKET FOR IT TO SERVE ALL OF ITS OTHER 11 MARKETS ARE IN THE SOUTHEAST THE ONLY CAVEAT THAT THE NEW DESTINATION BE WITHIN 400 MILES OF ATLANTA BECAUSE VALUJET SPECIALIZES IN SHORT HAULS MORE THAN HALF THE 7500 OR SO ENTRIES VALUJET RECEIVED WERE FOR CITIES WELL BEYOND THAT BOUNDARY LINE SCORES OF ENTRIES CAME IN FOR TOURIST DESTINATIONS SUCH AS SAN DIEGO 1887 MILES AWAY AND FOR SAN FRANCISCO 2135 MILES DISTANT AT 732 MILES NASSAU IN THE BAHAMAS WAS WELL BEYOND THE MILEAGE LIMIT IT'S ALSO OUTSIDE THE US AND VALUJET IS STRICTLY A DOMESTIC CARRIER THAT MEANT VOTES FOR ARUBA BERMUDA AND JAMAICA WERE ALSO OFF THE MAP VALUJET OFFICIALS DON'T KNOW WHETHER THE VOTERS DIDN'T READ THE RULES CORRECTLY WEREN'T REALLY SURE HOW FAR AWAY SOME OF THOSE CITIES WERE OR SIMPLY IGNORED THE RESTRICTIONS AND VOTED THEIR HEART'S DESIRE THE LATTER IS QUITE LIKELY GIVEN THAT VALUJET'S FARES START AT 39 ONE WAY SO IF A FARE THAT LOW IS A POSSIBILITY WHY NOT NOMINATE A ROUTE THAT MATTERS IF ONLY TO ONE VOTER LIKE BLAIRSVILLE GA WHICH IS WITHIN 400 MILES UNFORTUNATELY IT HAS ONLY 600 RESIDENTS AND NO COMMERCIAL AIRPORT IN FACT SEVERAL ENTRIES WERE FOR CITIES THAT HAVE NO COMMERCIAL SERVICE PERHAPS BECAUSE THEY HAVE NO COMMERCIAL AIRPORTS CHILLICOTHE OHIO FALLS IN THAT CATEGORY AS DOES FITZGERALD GA WHICH HAS ONLY A SHORT TURF RUNWAY MORE SUITABLE TO TINY PROPJETS AND CROPDUSTERS THAN VALUJET'S DC9S AFTER WEEDING OUT THE OUTLANDISH AND INELIGIBLE VALUJET PLANS TO ANNOUNCE THE CONTEST RESULTS THIS MORNING NAMING THE CITY IT WILL ADD TO ITS SCHEDULE STARTING MAY 1 AIRLINE OFFICIALS SAID THE TOP THREE VOTE GETTERS WERE CINCINNATI CHARLOTTE NC AND SAVANNAH GA NOT IN THE RUNNING MACON THAT GEORGIA TOWN WAS ONE OF 12 THAT WERE TOO NEAR FROM THE ATLANTA AIRPORT MACON'S ONLY 45 MINUTES AWAY SAID A VALUJET SPOKESWOMAN IT DOESN'T MAKE ANY SENSE TO FLY YOU'D SPEND ALL YOUR TIME IN TRAFFIC GETTING TO THE AIRPORT 9401070132 940107 YOUR MONEY MATTERS WEEKEND REPORT LOOK BEFORE TAKING THE LEAP INTO HEDGE FUNDS BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL WITH STOCK MARKETS AT RECORD HIGHS A LOT OF INVESTORS ARE THINKING ABOUT HOW TO PROTECT THEIR NEST EGGS FROM A POSSIBLE DOWNTURN BUT MANY OF THOSE WEALTHY ENOUGH TO AFFORD MINIMUM INVESTMENTS OF 500000 OR MORE ARE TAKING ACTION THEY ARE ENTRUSTING THEIR MONEY OR AT LEAST A HEFTY CHUNK OF IT TO INVESTMENT MANAGERS WHO RUN PRIVATE PARTNERSHIPS REASSURINGLY KNOWN AS HEDGE FUNDS HEDGE FUNDS WHICH ARE POPULARLY ASSOCIATED WITH SUCH INVESTMENT LUMINARIES AS GEORGE SOROS MICHAEL STEINHARDT AND JULIAN ROBERTSON GOT THEIR NAME BECAUSE MANAGERS CAN HEDGE THEIR BETS WITH STRATEGIES AIMED AT PROTECTING INVESTORS AGAINST A MARKET CORRECTION AND EVEN MAKING MONEY IN A BEAR MARKET WE ARE TRYING TO BALANCE RISK FROM EVERY POSSIBLE ANGLE FOR OUR CLIENTS BY USING A WIDE ARRAY OF STRATEGIES NOT AVAILABLE TO TRADITIONAL MANAGERS SAYS E LEE HENNESSEE DIRECTOR OF THE HEDGE FUND SELECT GROUP OF REPUBLIC NEW YORK SECURITIES CORP IT'S EASY TO UNDERSTAND THE APPEAL SOME SUPERSTAR MANAGERS SUCH AS MR SOROS OF QUANTUM FUND MR STEINHARDT OF STEINHARDT PARTNERS AND MR ROBERTSON OF TIGER FUND PRODUCE BIG RETURNS YEAR AFTER YEAR FOR 1993 FOR EXAMPLE FUNDS RUN BY GEORGE SOROS AVERAGED A 73 GAIN BEFORE INCENTIVE FEES AND MR ROBERTSON'S TIGER FUND HAD A 74 GROSS RETURN BEFORE FEES BUT HEDGE FUNDS CAN ALSO MEAN BIG RISKS INDEED SOME INVESTMENT PROS SAY THAT FAR FROM BEING THE SAFE HARBORS CONJURED UP BY THE NAME HEDGE FUND THESE INVESTMENTS ARE REALLY HIGHSTAKES GAMBLES ON GUNSLINGER MANAGERS THEY PLACE BIG BETS AND THESE CAN BE IN ANY DIRECTION SAYS JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS MR MARKESE SAYS HE'S NEVER SEEN A STUDY OF HEDGE FUNDS THAT INCLUDES THE ADDED RISK THEY TAKE TO ACHIEVE THEIR HIGHER RETURNS HEDGE FUNDS ARE NOT APPROPRIATE FOR A LOT OF PEOPLE SAYS STEVE JANACHOWSKI PARTNER IN THE SAN FRANCISCO INVESTMENTMANAGEMENT FIRM OF BROUWER & JANACHOWSKI THEY TRADE ON MARGIN THEY ARE HIGHLY LEVERAGED AND THEY TAKE BIG POSITIONS THEY EITHER PAY OFF OR GET HAMMERED EVEN MS HENNESSEE DOESN'T RECOMMEND THAT WEALTHY INVESTORS PUT ALL THEIR MONEY IN HEDGE FUNDS INSTEAD SHE SAYS THEY ARE APPROPRIATE FOR JUST A PORTION OF ONE'S ASSETS AS A WAY TO GET INCREASED DIVERSIFICATION CONSULTANTS SAY 40 BILLION IS INVESTED IN HEDGE FUNDS AND THERE MAY BE 800 TO 1000 OF THESE FUNDS IN OPERATION DOUBLE THE NUMBER OF A FEW YEARS AGO TWO OR THREE HEDGE FUNDS ARE OPENING UP EACH WEEK SAYS BUDGE COLLINS PRESIDENT OF COLLINS ASSOCIATES A NEWPORT BEACH CALIF PENSION CONSULTANT AND INVESTMENT MANAGER HEDGE FUNDS HAVE BECOME CHIC SAYS MICHAEL STOLPER A SAN DIEGO CONSULTANT WHO HELPS WEALTHY INDIVIDUALS PICK MONEY MANAGERS THEY ARE ANOTHER CLUB YOU CAN BELONG TO IF YOU ARE AFFLUENT AND OTHER PEOPLE CAN'T BUT THIS IS A CLUB IN WHICH THE INVESTOR MUST TRUST THE FUND MANAGER IN A HEDGE FUND THE MANAGER HAS VIRTUALLY TOTAL POWER TO INVEST YOUR MONEY IN ANYTHING AND ANY WAY HE OR SHE PLEASES THAT INCLUDES SHORT SALES IN WHICH THE MANAGER SEEKS TO PROFIT FROM AN ANTICIPATED PRICE DECLINE BY SELLING BORROWED SHARES EVENTUALLY SHARES MUST BE BOUGHT TO REPLACE THE BORROWED ONES BUT IF THE PRICE FALLS BEFORE THEN THE SHORT SELLER PROFITS HEDGE FUNDS ALSO BUY DERIVATIVES ESOTERIC FINANCIAL ARRANGEMENTS WHOSE RETURNS ARE LINKED TO OR DERIVED FROM THE PERFORMANCE OF SUCH THINGS AS INTEREST RATES CURRENCIES STOCKS OR COMMODITIES THEN THERE ARE FUTURES AND OPTIONS AND OVERSEAS INVESTMENTS IN COUNTRIES YOU'VE NEVER EVEN HEARD OF AND THE MANAGER CAN LEVERAGE YOUR RISK BY BORROWING MONEY TO INVEST ON MARGIN SAYS MR STOLPER THE SAN DIEGO CONSULTANT THERE'S NO SECRET TO HOW THEY DO IT THEY LEVERAGE AND CONCENTRATE THEIR INVESTMENTS TO GET RETURNS UP BUT BOTH THESE STRATEGIES ARE TWOEDGED SWORDS FURTHERMORE YOU WILL RARELY IF EVER SEE THE NAMES OF THE STOCKS BONDS SHORT SALES CURRENCIES AND OTHER INVESTMENTS IN YOUR ACCOUNT PROS SAY YOUR INFORMATION WILL OFTEN CONSIST MERELY OF A LETTER LISTING THE QUARTERLY RATE OF RETURN ON YOUR INVESTMENT A K1 STATEMENT OF INFORMATION FOR YOUR INCOMETAX RETURN AND AN ANNUAL AUDITED FINANCIAL STATEMENT YOU'VE ALSO GOT TO SHARE YOUR PROFITS WITH YOUR MANAGER THE TYPICAL HEDGE FUND MANAGER NOT ONLY GETS A 1 MANAGEMENT FEE BUT ALSO TAKES A HEFTY 20 SLICE OF THE PROFITS THE LURE OF A BIG PAYOFF ATTRACTS THE BEST AND THE BRIGHTEST OF THE INVESTMENT WORLD SAYS DONALD J HARDY DIRECTOR OF RUSSELL PRIVATE INVESTMENT SERVICES A TACOMA WASH INVESTMENTCONSULTING FIRM THE START OF THE YEAR IS CRUCIAL FOR MANY HEDGEFUND INVESTORS BECAUSE IF THEY WANT TO ENTER OR EXIT A FUND THEY OFTEN MUST DO IT ON THE FIRST BUSINESS DAY OF THE YEAR SAYS PETER DECICCO PRESIDENT OF PORTFOLIO MANAGEMENT RESOURCES INC A FAIRFIELD IOWA CONSULTING FIRM THAT SELECTS AND EVALUATES HEDGEFUND MANAGERS BUT ONLY A FEW WEALTHY INDIVIDUALS WITH IMPECCABLE CONNECTIONS CAN INVEST WITH THE SUPERSTARS BECAUSE HEDGE FUNDS ARE LIMITED PARTNERSHIPS THAT AREN'T REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION THEY ARE LIMITED TO 99 INVESTORS EACH AND INVESTMENT POSITIONS WITH THE SUPERSTARS ARE FILLED MINIMUMS OFTEN ARE 10 MILLION WITH THE STAR FUNDS AND YOU MAY HAVE TO LOCK UP YOUR MONEY FOR THREE YEARS INSTEAD OF ONE SOME PROS DON'T THINK THE TYPICAL WELLOFF INVESTOR IS GOING TO BE INVESTING WITH A TOP PERFORMER LET ALONE A SUPERSTAR OF THE HUNDREDS OF HEDGEFUND MANAGERS MAYBE 30 ARE EXTRAORDINARY AND THE REST ARE DESTINED FOR MEDIOCRITY OR WORSE SAYS MR STOLPER STILL STUDIES BY HEDGEFUND CONSULTANTS SHOW THAT THE AVERAGE HEDGEFUND MANAGER THEY TRACK BEATS THE STANDARD & POOR'S 500STOCK INDEX AND THE AVERAGE GROWTH MUTUALFUND MANAGER REPUBLIC NEW YORK'S MS HENNESSEE REPORTED THAT AFTER INCENTIVE FEES THE AVERAGE HEDGE FUND IN HER UNIVERSE OF FUNDS RETURNED 19 ANNUALLY FROM 1987 THROUGH 1992 THAT OVERSHADOWS A YEARLY TOTAL RETURN OF 147 BY THE S&P 500 AND 14 FOR THE AVERAGE GROWTH MUTUALFUND MANAGER MS HENNESSEE'S UNIVERSE OF FUNDS RANGED FROM 111 HEDGE FUNDS IN 1987 TO 362 FUNDS IN 1992 HEDGE FUNDS SOUNDLY OUTPERFORMED THE COMPETITION IN THE TWO RECENT ROUGH YEARS FOR INVESTORS 1987 145 VS 52 FOR THE S&P AND 1990 109 VS A NEGATIVE 34 FOR THE S&P MS HENNESSEE SAYS THROUGH SEPT 30 OF LAST YEAR THE LATEST AVAILABLE NUMBERS THE AVERAGE HEDGE FUND FOLLOWED BY RUSSELL PRIVATE INVESTMENT SERVICES RETURNED 168 UP SHARPLY FROM THE 75 TOTAL RETURN OF THE S&P 500 SAYS MR HARDY STILL SOME INVESTMENT PROS AREN'T CONVINCED MR JANACHOWSKI THE SAN FRANCISCO INVESTMENT ADVISER WONDERS HOW REPRESENTATIVE THE FUNDS IN THE STUDY ARE OF THE WHOLE GROUP OF HEDGE FUNDS IT'S A SELFSELECTING UNIVERSE HE SAYS THESE FUNDS DON'T HAVE TO REPORT THEIR RESULTS SO MANAGERS WHO DON'T DO WELL MAY NOT REPORT OR THEY SIMPLY GO OUT OF BUSINESS BECAUSE THEY CONCENTRATE THEIR INVESTMENTS AND USE LEVERAGE AND SHORT SALES INVESTMENT RETURNS FROM SOME HEDGE FUNDS CAN VARY MUCH MORE THAN THE TYPICAL MUTUAL FUND PROS SAY FOR EXAMPLE ONE FUND EXPERIENCED A 21 LOSS IN THE MONTH OF FEBRUARY ALONE SAYS ONE CONSULTANT ANOTHER FUND RACKED UP A 17 RETURN IN THE MONTH OF MAY FOR PEOPLE WHO HAVE THE STOMACH AND THE WALLET FOR HEDGEFUND INVESTING IT'S PROBABLY WORTH PAYING FOR A CONSULTANT TO SELECT AND MONITOR SEVERAL HEDGE FUNDS INVESTMENT ADVISERS SAY FEES VARY SOME BROKERS CHARGE NO FEES BUT GET COMPENSATED WHEN THE HEDGEFUND MANAGER BUYS AND SELLS STOCKS AND OTHER INVESTMENTS THROUGH THE BROKER'S FIRM CREATING THE POTENTIAL FOR A CONFLICT OF INTEREST SOME CONSULTANTS CHARGE A PERCENTAGE OF ASSETS MANAGED MR DECICCO OF PORTFOLIO MANAGEMENT RESOURCES FOR EXAMPLE CHARGES FEES OF LESS THAN 1 ON LARGE ACCOUNTS HE SAYS ANOTHER APPROACH IS TO BUY A DIVERSIFIED FUND OF HEDGE FUNDS SEVERAL CONSULTANTS OFFER THESE INVESTMENTS MINIMUM INVESTMENT REQUIREMENTS IN THESE FUNDS USUALLY IS LOWER ABOUT 250000 AND IT'S UP TO THE CONSULTANT TO HIRE AND FIRE HEDGE FUNDS IN THE FUND FOR THIS SERVICE CONSULTANTS OFTEN CHARGE 1 OF ASSETS MANAGED SOME CHARGE INCENTIVE FEES ON TOP OF THIS HERE TOO INVESTORS NEED SHARP ANALYSIS BECAUSE THEY ARE ADDING ANOTHER LAYER OF MANAGEMENT FEES TO FEES CHARGED BY THE FUNDS ALREADY UNLESS YOU'RE CAREFUL THIS APPROACH IS GOING TO MAKE THE 3 WRAP FEES CHARGED BY SOME BROKERS ON THEIR MONEYMANAGEMENT ACCOUNTS LOOK LIKE A BARGAIN MR STOLPER SAYS 9401070131 940107 MEDICAL ODYSSEY TESTING A NEW DRUG ENTAILS DAUNTING COSTS AND CLASHING INTERESTS UPJOHN LABORS TO RECRUIT SUITABLE STROKE PATIENTS DICKERS WITH DOCTORS TURF WARS AND PRICE PRESSURE BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL CHARLOTTESVILLE VA ALL NIGHT LONG KAREN DELLINGER HUDDLED WITH HER CHILDREN IN A SMALL VISITORS' LOUNGE AT THE UNIVERSITY OF VIRGINIA HOSPITAL PRAYING THAT HER HUSBAND WILBUR WOULDN'T DIE AT 330 AM A DOCTOR EMERGED FROM THE INTENSIVECARE UNIT TO CONFIRM THAT MR DELLINGER HAD A BRAIN HEMORRHAGE AND NEEDED SURGERY HOURS LATER ANOTHER DOCTOR OFFERED A TANTALIZING CHOICE AN EXPERIMENTAL DRUG WAS BEING TESTED ON PATIENTS THOUGH UNPROVEN IN HUMANS IT HAD REDUCED POTENTIALLY FATAL COMPLICATIONS IN ANIMALS SHORTLY AFTER BRAIN HEMORRHAGES MRS DELLINGER ASKED IF SHE WANTED HER 51YEAROLD HUSBAND TO ENTER THE STUDY SEIZED THE CHANCE IT WAS A MATTER OF LIFE AND DEATH SHE SAYS OF WHETHER HE WOULD EVER REGAIN HIS FACULTIES LIKE THE DELLINGERS HUNDREDS OF PATIENTS AND THEIR DOCTORS AT VARIOUS MEDICAL CENTERS ARE WAITING ANXIOUSLY TO SEE WHETHER THE DRUG TIRILAZAD MESYLATE WORKS THEY ARE TESTING IT AS PART OF A LARGESCALE CLINICAL TRIAL A COSTLY STRESSFUL PROCESS IN WHICH DRUG COMPANIES GATHER DATA THAT THE FOOD AND DRUG ADMINISTRATION USES TO DECIDE WHICH PROPOSED PRESCRIPTION DRUGS ARE SAFE AND EFFECTIVE ENOUGH FOR SALE AND WHICH AREN'T HUMAN DRUG TRIALS ARE CRUCIAL TO PHARMACEUTICAL COMPANIES SUCH AS UPJOHN CO WHICH MAKES TIRILAZAD LAST YEAR ABOUT 2000 COMPOUNDS WERE TESTED ON AT LEAST 650000 PATIENTS IN THE US ALONE THE NATIONAL INSTITUTES OF HEALTH ESTIMATES DRUG COMPANIES SPENT NEARLY 3 BILLION ON HUMAN TRIALS THE BIGGEST CHUNK OF THEIR RESEARCH AND DEVELOPMENT BUDGETS BUT NEW PRESSURES MAKE IT HARDER TO CARRY OUT A DRUG TRIAL QUICKLY AND AFFORDABLY OR EVEN AT ALL BIG TRIALS NOW CAN COST 50 MILLION AND INVOLVE LOGISTICS AS FRENETIC AS SHOOTING A MOVIE WITH BOTH PRESIDENT CLINTON AND BIG INSURERS PUSHING HARD FOR DRUGPRICE CONTROLS PHARMACEUTICAL COMPANIES ARE HAVING A MUCH TOUGHER TIME ABSORBING SUCH EXPENSES IN THE PAST DRUG COMPANIES HAVEN'T REALLY BEEN HAMPERED BY RISING COSTS SAYS LOUIS LASAGNA A DRUGDEVELOPMENT EXPERT AT TUFTS UNIVERSITY BUT NOW THE INDUSTRY IS RUNNING SCARED RESEARCH AND DEVELOPMENT BUDGETS ARE GOING TO BE CUT BACK AND THAT'S BOUND TO HAVE AN IMPACT ON CLINICAL TRIALS AND JUST AS THE DRUG INDUSTRY ENTERS AN ERA OF RETRENCHMENT THE BATTLE FOR CONTROL OF TRIALS IS HEATING UP DOCTORS SCIENTISTS REGULATORS AND DRUGCOMPANY EXECUTIVES REPEATEDLY CLASH OVER TURF AND ISSUES AS VITAL AS PATIENTS' LIVES OR THE INTEGRITY OF A MULTIYEAR PROJECT THE HIGH STAKES TURN EVEN A MINOR SQUABBLE INTO A DRAWNOUT TEST OF WILLS A LOOK AT TIRILAZAD'S JOURNEY FROM LAB TO PATIENT SHOWS HOW THESE HOPES AND FRUSTRATIONS INTERTWINE THE STORY STARTS AT UPJOHN'S LABS IN KALAMAZOO MICH IN THE EARLY 1980S SCIENTISTS HAD DISCOVERED A CASCADE REACTION IN WHICH DYING BRAIN CELLS RELEASE FREE RADICALS A HIGHLY REACTIVE CLASS OF MOLECULES THAT ARE MISSING AN ELECTRON AND THAT GO ON TO DAMAGE HEALTHY BRAIN CELLS NEARBY IF A NEW DRUG COULD STOP THIS CASCADE SCIENTISTS BELIEVED IT COULD HELP HUNDREDS OF THOUSANDS OF STROKE AND HEADINJURY VICTIMS EVERY YEAR BY THE MID1980S UPJOHN HAD SOME PROMISING CANDIDATES WHEN A MOUSE THAT HAD RECEIVED A TEST COMPOUND BEGAN WIGGLING AFTER RESEARCHERS HAD GIVEN IT UP FOR DEAD UPJOHN DECIDED TO CALL ITS POTENTIAL NEW DRUGS LAZAROIDS AFTER THE BIBLICAL LAZARUS BUT BEFORE UPJOHN COULD TEST THEM ON PEOPLE IT NEEDED HELP FROM LEADING RESEARCH DOCTORS AROUND THE US SO IN 1986 WHILE ANIMAL TRIALS WERE UNDER WAY UPJOHN SENT ONE OF ITS EMPLOYEES TO VISIT NEAL KASSELL A NEUROSURGEON AT THE UNIVERSITY OF VIRGINIA TO SEE WHETHER HE WANTED TO STUDY THE MOST PROMISING OF THE LAZAROIDS TIRILAZAD THE TALKS STARTED OFF BADLY UPJOHN WANTED TO FOCUS ON TREATING THE MOST COMMON TYPE OF STROKE ISCHEMIC STROKE WHICH IS CAUSED BY A BLOODFLOW STOPPAGE IN PART OF THE BRAIN AND AFFLICTS 400000 AMERICANS A YEAR DR KASSELL WASN'T INTERESTED HE SPECIALIZED IN A RARER STROKE SUBARACHNOID HEMORRHAGES WHICH INVOLVE BLEEDING BETWEEN THE BRAIN AND THE SKULL AND HIT ONLY 30000 PATIENTS A YEAR BUT AS THE TALKS CONTINUED A POSSIBLE NEW USE OF TIRILAZAD EMERGED MOST HEMORRHAGE PATIENTS UNDERGO PROMPT BRAIN SURGERY WHICH CAN HELP GREATLY AT FIRST BUT STILL LEAVES A RISK OF VASOSPASM A POTENTIALLY FATAL CONSTRICTION OF BLOOD VESSELS IN THE BRAIN ABOUT NINE DAYS AFTER THE INITIAL HEMORRHAGE DOCTORS IN THE MID1980S USED VARIOUS DRUGS TO WARD OFF VASOSPASM WITH LIMITED SUCCESS AS DR KASSELL SAW IT TIRILAZAD MIGHT BE A POTENT NEW WAY OF CONTROLLING VASOSPASM AFTER SOME DICKERING UPJOHN AGREED TO WORK WITH DR KASSELL TO WIDEN THE POSSIBLE USES OF ITS DRUG IT WOULD PAY HIM AND HIS COLLEAGUES TO TEST TIRILAZAD ON RABBITS MONKEYS AND THEN HUMANS WITH HEMORRHAGES WHILE IT PURSUED THE ISCHEMICSTROKE MARKET WITH OTHER DOCTORS TIRILAZAD FACED LONG ODDS MORE THAN 90 OF PROMISING COMPOUNDS PROVE SO HARMFUL OR INEFFECTIVE IN ANIMALS THAT RESEARCHERS DROP THEM BUT TIRILAZAD LIVED UP TO HOPES IN ANIMAL STUDIES IN 1987 AND 1988 IT THEN FARED WELL IN SMALLSCALE TESTS ON HUMAN SUBJECTS A PROCESS THAT FLUNKS 60 OF THE SURVIVING DRUGS IN EARLY 1992 UPJOHN AND THE UNIVERSITY OF VIRGINIA WERE READY FOR THE FINAL ROUND OF PATIENT TRIALS THE COSTLIEST TOUGHEST STAGE CALLED PHASE III TESTING BY THE FDA IT WOULD INVOLVE ABOUT 2000 PATIENTS WORLDWIDE SPLIT ALMOST EVENLY BETWEEN THE US AND FOREIGN COUNTRIES TO OVERSEE THE US PART OF PHASE III UPJOHN AND THE UNIVERSITY SET UP DUAL BATTLE ROOMS IN KALAMAZOO AND CHARLOTTESVILLE RESEARCHERS INITIALLY COMMUNICATED VIA PUBLIC INTERNET LINKS BUT SOON SWITCHED TO PRIVATE COMPUTER LINES FOR SECURITY REASONS PLANNERS AT BOTH SITES MAPPED OUT A STRATEGY TO SIGN UP NEARLY 60 HOSPITALS FOR THE STUDY ENROLL PATIENTS COLLECT DATA AND THEN PREPARE AN FDA FILING THAT MIGHT WELL FILL 50 SHIPPING CARTONS LIKE MOST DRUG MAKERS UPJOHN WANTED TO WORK WITH TOP TEACHING HOSPITALS WHICH HAVE PRESTIGE A STEADY FLOW OF PATIENTS AND THE ABILITY TO HANDLE THE PAPERWORK THAT COULD OVERWHELM A SMALL INSTITUTION THE UNIVERSITY OF VIRGINIA OFFERED ITS OWN MEDICAL CENTER AND HELPED RECRUIT DOCTORS AT BIGNAME CENTERS SUCH AS JOHNS HOPKINS HOSPITAL AND THE MAYO CLINIC WITH SUCH CENTERS HOWEVER CAME SOME PROBLEMS AN EARLY BLOWUP INVOLVED PLANS FOR DOCTORS TO MONITOR PATIENTS' TOTAL TREATMENT COST INCLUDING ANY POSTHOSPITAL CARE SUCH DATA COULD HELP UPJOHN SHOW LATER THAT TIRILAZAD WAS COSTEFFECTIVE EVEN AT A POSSIBLE PRICE OF 1500 OR MORE FOR THE 40 DOSES THAT PATIENTS WOULD NEED BUT SOME DOCTORS BALKED AT THE BOOKKEEPING I'M SURE ALL THAT COST INFORMATION IS IMPORTANT BUT I TOLD THEM I DON'T DO THAT' SAYS EUGENE FLAMM A NEUROSURGEON AT THE UNIVERSITY OF PENNSYLVANIA I'M INTERESTED ONLY IN THE TREATMENT OF VASOSPASM UPJOHN AND DR KASSELL'S AIDES URGED HIM TO RELENT HE DIDN'T I TOLD THEM I'M JUST BEING MY USUAL CANTANKEROUS SELF' DR FLAMM RECALLS ULTIMATELY UPJOHN LET DR FLAMM SKIP THE COST DATA TO UPJOHN WHICH PAYS A 5000 BOUNTY FOR EACH PATIENT ENROLLED IN THE STUDY THE DOCTORS' PICKINESS COULD BE ANNOYING BUT TO PHYSICIANS CLINICAL TRIALS ARE MEANT TO PROMOTE PATIENT CARE AND MEDICAL KNOWLEDGE TRIALS SHOULDN'T BE SWAYED BY A DRUG COMPANY'S MARKETING GOALS DAVID PIEPGRAS A MAYO CLINIC NEUROSURGEON SAYS HE DELAYED JOINING THE TRIAL BECAUSE IT SEEMED TO REQUIRE COSTLY POSSIBLY UNDESIRABLE ADDITIONS TO PATIENT TREATMENT RECRUITING PATIENTS BROUGHT MORE PROBLEMS THE TRIAL RULES SET BY THE UNIVERSITY OF VIRGINIA ALLOWED ANYONE AGE 18 TO 80 TO PARTICIPATE BUT THE PATIENTS COULDN'T BE PREGNANT OR SO ILL FROM OTHER DISEASES THAT THEY WERE LIKELY TO DIE DURING THE TRIAL RESEARCHERS THOUGHT THOSE RULES WERE BROAD ENOUGH THAT THEY COULD EASILY ENROLL 900 US PATIENTS IN 18 MONTHS THEY WERE WRONG ANOTHER RULE ALLOWED PATIENTS TO ENTER THE TRIAL ONLY IF THEY HAD SUFFERED A BRAIN HEMORRHAGE IN THE PAST 48 HOURS OTHERWISE TISSUE DAMAGE MIGHT BE TOO ADVANCED FOR TIRILAZAD TO HELP SUCH TIME LIMITS CAN SHARPLY LIMIT THE PATIENT POOL AND ENROLLMENT IN THE TRIAL FELL BEHIND SCHEDULE THE DELAYS GOT SO FRUSTRATING THAT NURSES IN CHARLOTTESVILLE ONCE CHEERED WHEN A HEMORRHAGE PATIENT ARRIVED WITHIN THE 48HOUR LIMIT LATER THEY DECIDED SUCH OUTBURSTS SEEMED A BIT GHOULISH GETTING PATIENTS' PERMISSION PROVED THORNY TOO UNDER FDA RULES PATIENTS OR THEIR CLOSE RELATIVES MUST READ AND SIGN AN INFORMED CONSENT FORM THAT SPELLS OUT POSSIBLE RISKS OF AN EXPERIMENTAL DRUG UNIVERSITY OF VIRGINIA RESEARCHERS BELIEVED TIRILAZAD'S SIDE EFFECTS WERE SO MINOR THAT IF AN UNCONSCIOUS PATIENT ARRIVED ALONE AT A HOSPITAL THE PATIENT COULD BE ENTERED IN THE TRIAL UNDER A DOCTRINE OF PRESUMED CONSENT THE PATIENT'S FAMILY COULD GIVE FORMAL APPROVAL LATER THAT APPROACH DIDN'T PLAY WELL AT OTHER HOSPITALS LOS ANGELES COUNTY HOSPITAL WHICH UPJOHN HAD BEEN COUNTING ON FOR MANY PATIENTS TOOK AN EXTRA YEAR TO DEVELOP A CONSENT FORM THAT IT REGARDED AS BETTER PROTECTING PATIENTS' RIGHTS MOSTLY BECAUSE OF THAT DELAY THE LOS ANGELES HOSPITAL HAS ENROLLED IN THE STUDY ONLY THREE PATIENTS FAR FEWER THAN EXPECTED YET TRIAL ADMINISTRATORS SAY THAT ONCE PATIENTS OR THEIR FAMILIES SEE THE CONSENT FORM THEY RARELY FORGO THE TRIAL TIRILAZAD'S KNOWN SIDE EFFECTS ARE MODEST RAISED LIVER ENZYMES IN SOME TEST ANIMALS AND MINOR ACHES IN SOME HUMANS I CAN'T THINK OF ANY CASE WHERE A PATIENT HAS REFUSED CONSENT SAYS LAURIE ELDER A UNIVERSITY OF VIRGINIA NURSE NOT ALL PATIENTS GET TIRILAZAD THOUGH ALL GET CONVENTIONAL CARE BUT SOME ALSO GET INTRAVENOUS DOSES OF THE EXPERIMENTAL DRUG WHILE OTHERS GET A PLACEBO STATISTICIANS LATER COMPARE THE TWO GROUPS TO MEET FDA GUIDELINES UPJOHN ASSIGNS PATIENTS RANDOMLY SO THAT ONE GROUP DOESN'T START OUT HEALTHIER OR GET BETTER TREATMENT IT ALSO USES CODED PACKAGES TO MAKE TIRILAZAD AND THE PLACEBO INDISTINGUISHABLE TO TESTERS THAT DOUBLEBLINDING LETS UPJOHN MONITOR THE DRUG'S EFFECTS WITHOUT BEING LED ASTRAY BY GAINS DOCTORS AND PATIENTS HOPE IT IS CAUSING BUT DOCTORS AND NURSES OFTEN TRY TO GUESS WHO IS GETTING THE DRUG AT THE MAYO CLINIC NURSE NICOLEE FODE NOTICED THAT SEVERAL PATIENTS HAD MINOR IRRITATION AT THE ENTRY SITE OF THEIR IV TUBE I THOUGHT AHA I'VE FIGURED IT OUT MS FODE RECALLS BUT SHE LATER LEARNED THAT THE IRRITATION WAS CAUSED BY A CITRATE SOLUTION IN WHICH THE DRUG WAS MIXED AND THAT PLACEBO PATIENTS ALSO GOT THE CITRATE SOLUTION PATIENTS MEANWHILE FIND THEY BECOME NONSTOP DATA BANKS IN A TYPICAL TWOWEEK HOSPITALIZATION THEY GET 40 DOSES OF TIRILAZAD UNDERGO 22 BLOOD TESTS AND HAVE A TOTAL OF 168 ENZYMES AND BLOOD GASES ANALYZED EXTRA BRAIN SCANS AND NEUROLOGICAL TESTS ARE DONE NURSES MAY NEED A TROLLEY JUST TO WHEEL A SINGLE PATIENT'S RECORDS AROUND AT THE TIME MOST PATIENTS DON'T MIND WHEN MR DELLINGER BEGAN HIS TIRILAZAD DOSAGE IN OCTOBER 1992 HE WAS RECOVERING FROM A 10HOUR BRAIN OPERATION TO HIS FAMILY'S DELIGHT HE BEGAN CHATTING ABOUT THAT DAY'S PRO FOOTBALL GAMES WHEN THE ANESTHETIC WORE OFF THOUGH WEAK AND GROGGY HE WASN'T COMPLAINING I KNEW I WAS ONE OF THE LUCKY ONES HE SAYS BUT THE QUEST FOR DATA CAN INFRINGE ON PATIENT CARE MAYO CLINIC'S DR PIEPGRAS BALKED AT REQUESTS TO LEAVE INTRAVENOUS LINES IN ALL PATIENTS FOR TWO WEEKS ANY IV LINE CAN CAUSE IRRITATION AND BLOOD CLOTS HE OBSERVES ADDING THAT IT SEEMED TO BE AN UNNECESSARY RISK FOR PATIENTS WHO HAD RECOVERED FAST HE PERSUADED UPJOHN AND THE UNIVERSITY OF VIRGINIA TO LET HIM DISCHARGE HEALTHY PATIENTS AHEAD OF SCHEDULE EVEN IF FULL DATA HADN'T BEEN GATHERED AFTER PATIENTS' HEALTH STABILIZES AND THEY LEAVE THE HOSPITAL MANY OF THEM AND THEIR FAMILIES ASK MORE QUESTIONS ALTHOUGH MR DELLINGER RECOVERED ENOUGH TO RETURN TO WORK AS A SALES MANAGER FOR A FOOD WHOLESALER HIS WIFE SAYS SHE OFTEN WONDERS WHETHER HE GOT TIRILAZAD OR THE PLACEBO BUT THE HOSPITAL ISN'T VOLUNTEERING THE INFORMATION NOR THAT THE DELLINGERS COULD FIND OUT BY FILING A WRITTEN REQUEST THAT IT WOULD FORWARD TO UPJOHN OF GREATER CONCERN IS WHETHER DOCTORS CAN SPOT ANY PATIENT BEING HURT BY A TRIAL DRUG AND WITHDRAW IT IN TIME HAUNTING RESEARCHERS IS THE CASE OF FIALURIDINE AN ELI LILLY & CO COMPOUND MEANT TO FIGHT HEPATITIS B FIVE PATIENTS DIED IN TRIALS BEFORE RESEARCH WAS HALTED LAST JUNE IN THE TIRILAZAD STUDY NURSES COLLECT HOURLY DATA ON EACH PATIENT AND DOCTORS CAN STOP USING THE DRUG AT ANY TIME MEANWHILE A SAFETY COMMITTEE OF INDEPENDENT STATISTICIANS AND DOCTORS REVIEWS PATIENT DEATHS AND MAJOR COMPLICATIONS THE PANEL RUN BY UNIVERSITY OF TORONTO NEUROSURGEON CHARLES DRAKE CAN BREAK THE ANONYMOUS CODE FOR ANY PATIENT OR STOP THE ENTIRE TRIAL IF PATIENT HEALTH APPEARS AT RISK SO FAR NO SUCH PROBLEM HAS OCCURRED DR DRAKE SAYS STILL AHEAD FOR UPJOHN IS THE FDA'S REVIEW OF PATIENT DATA IF REGULATORS CONSIDER TIRILAZAD SAFE AND EFFECTIVE THEY CAN APPROVE IT IF DOUBTFUL THEY CAN ASK FOR MORE DATA OR REJECT THE DRUG ENTIRELY SUCH REVIEWS INEVITABLY ARE FILLED WITH TENSION REGULATORS WANT TO KEEP DANGEROUS OR POORLY DOCUMENTED DRUGS OFF THE MARKET AND THEY APPROACH EACH NEW FILING WITH SKEPTICISM DRUG COMPANIES ARE ADVOCATES OBSERVES ROBERT TEMPLE AN FDA OFFICIAL IN CHARGE OF NEWDRUG APPROVALS THAT DOESN'T MEAN THAT THEY ARE LIARS BUT THEY ARE ADVOCATES DRUG DEVELOPERS IN TURN FEEL BURDENED BY A SYSTEM IN WHICH REGULATORS HAVE LITTLE TO GAIN BY PROMPTLY APPROVING A GOOD DRUG BUT MUCH TO LOSE IF A BAD ONE SLIPS THROUGH CONVINCED THAT THE TINIEST RECORDKEEPING FLAW MIGHT ATTRACT THE FDA'S SUSPICION NURSES AND STATISTICIANS AT THE UNIVERSITY OF VIRGINIA FRET OVER DATA ALMOST OBSESSIVELY SOME MATERIAL ENTERING MASTER FILES IS CHECKED 61 TIMES ALONG THE WAY SAYS NURSE NANCY TISDALE ESPECIALLY FRANTIC SCRAMBLES INVOLVE PATIENTS WHO START A STUDY BUT DON'T STAY TILL THE END DROPOUTS ARE A PLAGUE OF ANY STUDY THE FDA'S DR TEMPLE SAYS ONE CAN'T TELL WHETHER THE SICKEST OR THE HEALTHIEST PATIENTS ARE DISAPPEARING HE SAYS AS A RESULT HIGH DROPOUT RATES JEOPARDIZE ANY STATISTICAL CONCLUSIONS FROM A STUDY SO NURSES AT EACH HOSPITAL STRIVE TO MAKE SURE THAT SUBJECTS DON'T DISAPPEAR EVEN AFTER THEY ARE DISCHARGED A SAN DIEGO HOSPITAL TRACKED DOWN ONE EXPATIENT IN MEXICO CITY AND PAID 500 FOR HIM TO BE DRIVEN BACK TO THE US FOR A FOLLOWUP EXAM AND AN EAST COAST NURSE FOUND A WAY TO SIPHON DATA FROM UNITED PARCEL SERVICE TO TRACK DOWN FORMER PATIENTS WHO HAVE MOVED I'M NOT SURE IT'S TOTALLY LEGAL THE NURSE SAYS BUT IT WORKS NOW UPJOHN IS STRAINING TO GET TIRILAZAD BEFORE THE FDA THE DRUG'S 17YEAR PATENT IS ALREADY MORE THAN A YEAR OLD AND EVEN THE MOST OPTIMISTIC ANALYSTS THINK IT WILL TAKE FAST WORK IF TIRILAZAD IS TO BE APPROVED IN THE US THIS YEAR THE NONUS STUDY OF HEMORRHAGE PATIENTS WAS COMPLETED LAST SUMMER AND SHOWED SIZABLE GAINS FOR PATIENTS GETTING TIRILAZAD BUT THE US STUDY A CRUCIAL PART OF ANY FDA FILING ISN'T EXPECTED TO END UNTIL JUNE SIX MONTHS BEHIND SCHEDULE AS WORD OF THE OVERSEAS STUDY REACHED WALL STREET LAST FALL ANALYSTS VOICED GROWING OPTIMISM ABOUT TIRILAZAD WHICH UPJOHN CALLS FREEDOX IT'S SIMPLY A MATTER OF TIME FOR A BLOCKBUSTER DRUG TO EMERGE IN THIS CATEGORY SAYS SHERRY SAMOTIN AN ANALYST AT WILKERSON GROUP IN NEW YORK SHE REGARDS TIRILAZAD AS A FRONTRUNNER IN A RACE WITH HALFADOZEN DRUG COMPANIES BUT TO PEOPLE WORKING TO GET TIRILAZAD TO MARKET A RACE IS THE WRONG ANALOGY THEY SEE IT MORE AS A TUGOFWAR OR ARMWRESTLING MATCH WHAT I FIND MOST FASCINATING ABOUT THIS PROCESS ARE THE MULTIPLE LOGICS SAYS WAYNE ALVES HEAD OF NEUROCLINICAL TRIALS AT THE UNIVERSITY OF VIRGINIA THERE'S A MEDICAL LOGIC A REGULATORY LOGIC A DRUGDEVELOPMENT LOGIC AND A SCIENTIFIC LOGIC ALL OF THEM MAKE SENSE IN THEIR OWN WORLDS BUT ALL THESE COMPETING LOGICS HAVE TO BE TRADED OFF IF A TRIAL IS EVER GOING TO BE COMPLETED 9401070130 940107 QUARTERLY MUTUAL FUNDS REVIEW NEW OFFERINGS IN 1993 OF CLOSEDEND FUNDS HIT A RECORD NUMBER NEW YORK NEW OFFERINGS OF CLOSEDEND INVESTMENT FUNDS NUMBERED A RECORD 123 IN 1993 BUT RAISED LESS MONEY OVERALL THAN THE PRIOR YEAR CLOSEDEND STOCK AND BOND FUNDS TOGETHER RAISED 1743 BILLION THAT WAS BEHIND 1992'S RECORD OF 1798 BILLION FROM 99 OFFERINGS THE DECLINE REFLECTS A DROP IN MUNICIPALBONDFUND OFFERINGS DEMAND DECLINED SHARPLY FOR CLOSEDEND MUNI FUNDS IN THE FOURTH QUARTER ONLY FIVE NEW OFFERINGS WERE PRICED COMPARED WITH 23 IN THE 1992 QUARTER OF THE YEAR'S TOTAL EQUITY FUNDS RAISED 2 BILLION THROUGH 14 OFFERINGS BOND FUNDS RAISED 154 BILLION THROUGH 109 OFFERINGS ACCORDING TO LIPPER ANALYTICAL SERVICES INC CLOSEDEND FUNDS WHICH TRADE LIKE STOCKS CAN BE FOUND MOSTLY ON THE NEW YORK STOCK EXCHANGE IN TRADING AFTER THEIR OFFERINGS SOME OF THE CLOSEDEND FUNDS THAT INVEST IN EMERGING MARKETS HAVE BEEN ESPECIALLY STRONG PERFORMERS FOR EXAMPLE THE LATIN AMERICA INVESTMENT FUND MEXICO FUND MEXICO EQUITY & INCOME FUND CHILE FUND AND MALAYSIA FUND ARE ALL TRADING MORE THAN 50 ABOVE THE PAST YEAR'S LOWS INVESTORS REACTED TO THE STRONG OVERSEAS STOCK MARKETS BY BIDDING UP THE SHARE PRICES OF FOREIGN EQUITY CLOSEDEND FUNDS BECAUSE CLOSEDEND FUNDS TRADE ON EXCHANGES THEIR SHARE PRICES ARE SET BY SUPPLY AND DEMAND AND THEY CAN TRADE ABOVE OR BELOW THE PERSHARE VALUE OF THE FUNDS' PORTFOLIO OF INVESTMENTS SHARES THAT TRADE ABOVE THE FUNDS' NET ASSET VALUE ARE SAID TO BE AT A PREMIUM WHILE SHARES TRADING BELOW ARE AT A DISCOUNT AT THE END OF 1993 FOREIGN CLOSEDEND STOCK FUNDS HAD SURGED TO A PREMIUM OF 11 ABOVE NET ASSET VALUE THAT PREMIUM WAS WELL ABOVE THE SLIGHT 14 PREMIUM OF THESE FUNDS ON SEPT 30 AND A BIG CHANGE FROM THE 38 DISCOUNT ON AVERAGE AMONG THESE FUNDS AT THE END OF 1992 ACCORDING TO LIPPER DOMESTICSTOCK FUNDS WALLOWED IN THE DEPTHS IN COMPARISON CLOSEDEND STOCK FUNDS INVESTING IN US STOCKS ENDED THE YEAR AT A DISCOUNT OF 40 FROM THE FUNDS' NET ASSET VALUE PER SHARE BARELY CHANGED FROM THE 41 DISCOUNT AT THE END OF 1992 USSTOCK FUND DISCOUNTS ACTUALLY EXPANDED SLIGHTLY IN THE FOURTH QUARTER WIDENING FROM A 36 DISCOUNT AT SEPT 30 CLOSEDEND BOND FUNDS FELL TO DISCOUNTS AT THE END OF 1993 DOWN FROM SLIGHT PREMIUMS AT THE END OF 1992 THE DISCOUNTS REFLECTED INVESTOR FEARS OF RISING INTEREST RATES WHICH HURT BOND PRICES MUNICIPALBOND FUNDS FELL TO A DISCOUNT OF 33 FROM A PREMIUM OF 12 AT THE END OF 1992 TAXABLEBOND FUNDS FELL TO A DISCOUNT OF 13 COMPARED WITH A PREMIUM OF 15 AT THE END OF 1992 9401070129 940107 WHO'S NEWS PACIFIC TELESIS GROUP PACIFIC TELESIS GROUP SAN FRANCISCO PETER DARBEE WAS NAMED VICE PRESIDENT OF BOTH THIS TELEPHONE COMPANY AND ITS PACIFIC BELL UNIT MR DARBEE 40 YEARS OLD WAS ALSO NAMED CONTROLLER OF THE UNIT A NEW POSITION MR DARBEE WAS FORMERLY A VICE PRESIDENT AND COLEADER AT GOLDMAN SACHS & CO'S ENERGY AND TELECOMMUNICATIONS GROUP IN THE INVESTMENT BANKING SERVICES DEPARTMENT 9401070128 940107 VISITING HONG KONG TRY CAMPING OUT MORE TOURISTS IN COLONY PROMPT HOTELS TO LIFT RATES BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG TRAVELING TO HONG KONG BOOK YOUR HOTEL EARLY AND PULL OUT YOUR WALLET IT'S A SELLER'S MARKET SOARING DEMAND FROM TOURISTS AND BUSINESS TRAVELERS COMBINED WITH A TIGHT SUPPLY OF ROOMS HAVE LIFTED AVERAGE HOTEL OCCUPANCY RATES HERE TO RECORD LEVELS WITH LITTLE NEW SUPPLY SCHEDULED FOR THE MARKET HOTEL EXECUTIVES AND ANALYSTS SAY ROOM RATES ARE LIKELY TO RISE WITH INCREASING VISITOR TRAFFIC AT LEAST FOR THE NEXT YEAR OR TWO NO MAJOR ADDITIONS ARE PLANNED FOR THE FOURSTAR AND FIVESTAR CATEGORY IN THE MIDRANGE MARKET ROOM SUPPLY IS ACTUALLY SHRINKING AS HOTELS THOUGH PROFITABLE ARE BEING REDEVELOPED TO MAKE WAY FOR HIGHERYIELDING OFFICE AND COMMERCIAL PROPERTIES EARLY LAST YEAR BANGKOKBASED BUSINESS CONSULTANT STEVE RASIN COULD WALK INTO THE LUK KWOK HOTEL NEAR HIS COMPANY'S HONG KONG OFFICE AND CHECK IN WITHOUT A RESERVATION BY MIDYEAR HE HAD TO BOOK TWO WEEKS IN ADVANCE IN OCTOBER EVEN THAT DIDN'T GET HIM A ROOM AT THE LUK KWOK OR OTHER HOTELS IN THE AREA SO MR RASIN A SENIOR ASSOCIATE WITH TECHNOMIC CONSULTANTS INTERNATIONAL OF THE US WHO VISITS HERE OFTEN HAD TO SETTLE FOR A HOTEL SEVERAL SUBWAY STOPS AWAY AND HE HAD TO PAY 30 MORE FOR A SMALLER ROOM WITH NO DESK NO INROOM FAX MACHINE AND NO SATELLITE TELEVISION YOU HAD TO PAY FOR MOVIES HE SAYS THIS IS GOING TO BE A FANTASTIC YEAR SAYS DARIO REGAZZONI VICE PRESIDENT OF OPERATIONS ASIA OF CONRAD HOTELS THE INTERNATIONAL ARM OF HILTON HOTELS CORP OF THE US AND GENERAL MANAGER OF THE CONRAD HONG KONG THE DELUXE HOTEL WHICH WAS 90 BOOKED IN OCTOBER HAD AN AVERAGE 1993 OCCUPANCY RATE OF 80 HE SAYS THE OUTLOOK IS VERY ROSY ADDS RICHARD TADROS SENIOR VICE PRESIDENT AT HONG KONGBASED REGAL HOTELS INTERNATIONAL LTD WHICH OPERATES FOUR HOTELS IN THE COLONY OVERALL HONG KONG HOTELS ENJOYED AN AVERAGE OCCUPANCY RATE OF 87 FOR THE FIRST 11 MONTHS OF 1993 THE LATEST PERIOD FOR WHICH FIGURES ARE AVAILABLE ACCORDING TO THE HONG KONG TOURIST ASSOCIATION THIS YEAR THE AVERAGE IS EXPECTED TO EXCEED 90 ACCORDING TO PEREGRINE BROKERAGE LTD WHICH RECENTLY PUBLISHED A STUDY OF ASIAN TOURISM THOSE NUMBERS SHOW HOW THE LAW OF SUPPLY AND DEMAND IS WORKING IN FAVOR OF HOTELS IN THE FIRST 10 MONTHS OF 1993 74 MILLION PEOPLE MORE THAN HALF OF THEM TOURISTS VISITED HONG KONG UP 13 FROM A YEAR EARLIER PEREGRINE FORECASTS GAINS OF 14 THIS YEAR AND 15 NEXT YEAR HOWEVER THE SUPPLY OF HOTEL ROOMS THE HKTA PROJECTS WILL GROW ONLY ABOUT 45 DURING THE NEXT TWO YEARS THE RESULTING SQUEEZE PROMPTS HOTELIERS HERE TO PREDICT THAT ROOM RATES WILL CLIMB AS MUCH AS 30 THIS YEAR AT THE POSH PENINSULA THE COLONY'S PRICIEST INN AND THE FLAGSHIP OF HONGKONG & SHANGHAI HOTELS LTD'S PENINSULA GROUP THE PUBLISHED RATE FOR A DOUBLE ROOM NOW STANDS AT HK2450 US316 A NIGHT ROUGHLY THE SAME AS IN 1990 GENERAL MANAGER FELIX BIEGER WARNS HOWEVER THERE DEFINITELY WILL BE AN INCREASE IN 1994 DESPITE THE FACT THAT THE PENINSULA IS BUILDING A 132ROOM EXTENSION SCHEDULED FOR COMPLETION LATER THIS YEAR AT THE CONRAD ONE OF THREE HOTELS ATOP THE UPMARKET PACIFIC PLACE MALL IN THE CENTRAL BUSINESS DISTRICT THE RATE FOR A DOUBLE WAS HK1536 LAST MONTH UP 40 FROM TWO YEARS EARLIER AND AT THE MIDRANGE CENTURY HONG KONG HOTEL A MEMBER OF HONG KONGBASED CENTURY INTERNATIONAL HOTELS GROUP THE SINGLEROOM TARIFF ROSE IN SEPTEMBER TO HK1300 FROM HK1100 NONETHELESS THE CENTURY ENDED UP WITH AVERAGE OCCUPANCY OF 90 FOR 1993 SOME TRAVEL AGENTS FRET THAT HIGHER RATES COULD START TO DIVERT TOURISTS TO OTHER DESTINATIONS IN SEPTEMBER 1993 ACCORDING TO TRAVEL BUSINESS ANALYST AN INDUSTRY NEWSLETTER AN INTERNATIONALSTANDARD ROOM AVERAGED US10214 IN SINGAPORE US8023 IN BANGKOK AND A HIGHER US11603 IN HONG KONG TOUR OPERATORS COMPLAINING THAT PRICE INCREASES PUT HONG KONG AT A DISADVANTAGE TO SINGAPORE AND BANGKOK SAY THEY'VE RECENTLY FACED RATE INCREASES UP TO 70 WHEN RENEGOTIATING GROUP CONTRACTS WITH LOCAL HOTELS HONG KONG HOTELIERS COUNTER THAT UPSCALE ACCOMMODATIONS HERE ARE STILL CHEAPER THAN IN OTHER CITIES WITH HIGH CONCENTRATIONS OF FOUR AND FIVESTAR HOTELS THERE ARE FIVE GREAT CITIES IN THE WORLD NEW YORK PARIS LONDON TOKYO AND HONG KONG SAYS MR REGAZZONI OF THE CONRAD IF YOU COMPARE US TO THE OTHER FOUR CITIES WE'RE STILL RELATIVELY CHEAP INDEED ACCORDING TO INTERNATIONAL HOTEL CONSULTANCY PKF CONSULTING ROOM RATES IN 1992 THE MOST RECENT YEAR FOR WHICH FIGURES ARE AVAILABLE AVERAGED US220 IN PARIS US162 IN LONDON US134 IN NEW YORK AND US187 IN TOKYO BUT JUST US9786 IN HONG KONG PEOPLE ARE SPOILED SAYS MR TADROS OF REGAL THEY'RE GETTING A VERY GOOD BUY IN HONG KONG IN THE MIDRANGE MARKET MEANWHILE SOARING LAND AND LABOR COSTS PROMPT MANY DEVELOPERS TO PURSUE HIGHYIELD LOWERMAINTENANCE OFFICE AND COMMERCIAL PROJECTS AT THE EXPENSE OF LABOR AND MANAGEMENTINTENSIVE HOTELS AMONG THE HOTELS THAT HAVE CLOSED OR WILL SOON DO SO TO MAKE WAY FOR OTHER DEVELOPMENTS ARE THE 660ROOM LEE GARDENS HOTEL THE 316ROOM CHINA HARBOUR VIEW THE 178ROOM CHINA MERCHANTS HOTEL THE 313ROOM AMBASSADOR HOTEL AND THE 187ROOM HOTEL FORTUNA VIRTUALLY EVERY ROOM IN THE FORTUNA A 30YEAROLD THREESTAR HOTEL THAT CATERS MAINLY TO TAIWANESE AND SOUTHEAST ASIANS HAS BEEN TAKEN IN THE LAST THREE MONTHS BUT AFTER VERY DETAILED CALCULATIONS THE MANAGEMENT STILL DECIDED TO REDEVELOP THE SITE INTO A COMMERCIAL COMPLEX SAYS A FORTUNA EXECUTIVE WHO ASKED NOT TO BE IDENTIFIED THERE'S DEFINITELY GOING TO BE A SHORTAGE OF MIDRANGE HOTELS IF THE TREND CONTINUES THE FORTUNA IS OWNED BY WING ON INTERNATIONAL HOLDINGS LTD OF HONG KONG IN FACT THE STOCK OF MIDRANGE HOTELS IN HONG KONG IS SHRINKING AT A TIME WHEN ARRIVALS FROM CHINA TAIWAN AND SOUTHEAST ASIA THE MAIN USERS OF SUCH HOTELS ARE SURGING IN 1993 17 MILLION MAINLAND CHINESE UP FROM 11 MILLION IN 1992 VISITED HONG KONG ACCOUNTING FOR ABOUT 20 OF TOTAL ARRIVALS ACCORDING TO THE HKTA THEIR SHARE WAS EXCEEDED ONLY BY THE TAIWANESE WITH 21 THE PENINSULA'S MR BIEGER WHO IS ALSO CHAIRMAN OF THE HONG KONG HOTELS ASSOCIATION SAYS THAT FOR THE FIRST TIME IN HIS 40 YEARS HERE THE COLONY IS LOSING HOTEL ROOMS TO OFFICES THE HOTEL ASSOCIATION AND THE HKTA ARE URGING THE GOVERNMENT TO ALLOCATE LAND TO HOTEL DEVELOPERS AT PREFERENTIAL PRICES AND TO GRANT THEM TAX HOLIDAYS TO SPUR CONSTRUCTION IN 1992 TOURISM BROUGHT IN HK48 BILLION SECOND ONLY TO EXPORTS OF TEXTILES AND GARMENTS EVEN SO SAYS PENNY BYRNE ASSISTANT MANAGER OF PUBLIC RELATIONS AT THE HKTA IF IT'S CHEAPER TO KNOCK DOWN A HOTEL AND BUILD AN OFFICE BUILDING THE GOVERNMENT IS SAYING IT CAN DO WITHOUT TOURIST REVENUE 9401070127 940107 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 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 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 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 312 30 TO 59 DAYS 315 60 TO 89 DAYS 318 90 TO 119 DAYS 322 120 TO 149 DAYS 324 150 TO 179 DAYS 332 180 TO 239 DAYS 343 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 319 30 DAYS 322 60 DAYS 326 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 259 TWO MONTHS 265 THREE MONTHS 282 SIX MONTHS 304 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 315 ONE MONTH 325 THREE MONTHS 338 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 308 60 DAYS 312 90 DAYS 317 120 DAYS 323 150 DAYS 327 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 9/16 SIX MONTHS 3 7/8 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 550 GERMANY 586 JAPAN 3 SWITZERLAND 750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY 3 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 310 13 WEEKS 329 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 704 60 DAYS 712 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 702 60 DAYS 712 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9401070125 940107 HP DIGITAL BECOME PC HEAVYWEIGHTS MANAGEMENT LUCK CITED IN IMPRESSIVE TURNAROUNDS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA THIS IS A TALE OF TWO COMPANIES BOTH FAMOUS BRAND NAMES IN THE WORLDWIDE COMPUTER INDUSTRY AND BOTH INFAMOUS FLOPS AT ONE OF ITS HOTTEST SPECIALTIES PERSONAL COMPUTERS UNTIL LATELY THAT IS AGAINST ALL THE ODDS HEWLETTPACKARD CO AND DIGITAL EQUIPMENT CORP HAVE MANAGED IN THE PAST TWO YEARS TO TRANSFORM THEIR ONCEPIDDLING PC BUSINESSES INTO WHAT INDUSTRY ANALYSTS NOW CALL CREDIBLE CONTENDERS ESPECIALLY HEWLETTPACKARD IN THE EUROPEAN MARKET THEY MAY STILL STUMBLE IN THE MONTHS AHEAD BUT THE TALE OF HOW THEY GOT EVEN THIS FAR IN EUROPE ILLUSTRATES THE SELLINGPOWER OF BIG BRAND NAMES IN TODAY'S CUTTHROAT PC MARKET PLUS THE IMPORTANCE OF A FEW LUCKY BREAKS THERE'S A BIT OF LUCK IN HEWLETTPACKARD'S PC PROGRESS ACKNOWLEDGES ALEXIS SOZONOFF GENERAL MANAGER OF HP'S COMPUTER PRODUCTS DIVISION IN EUROPE THE MIDDLE EAST AND AFRICA IT BEGAN ITS WORLDWIDE SALES PUSH JUST AS AN INDUSTRY PRICE WAR BEGAN MAKING BIGBRAND PCS AFFORDABLE TO MORE CONSUMERS PROMPTING A MASS EXODUS FROM NONAME CLONES TO HOUSEHOLD NAMES LIKE HP IT ALSO DIDN'T HURT THAT THE MARKET LEADERS INTERNATIONAL BUSINESS MACHINES CORP AND COMPAQ COMPUTER CORP HAD LONG BACKLOGS OF UNFILLED ORDERS THAT AT ONE POINT LAST YEAR WERE DELAYING DELIVERIES OF SOME MODELS BY SEVERAL WEEKS RATHER THAN WAIT MANY SHOPPERS DECIDED TO CHECK OUT HP BUT GOOD MANAGEMENT ALSO HELPED ANALYSTS SAY AT HEWLETTPACKARD THEY'RE MAKING ALL THE RIGHT MOVES SAYS CHRISTOPHER FELL HEAD EUROPEAN PCINDUSTRY ANALYST FOR DATAQUEST INC A SAN JOSE CALIF MARKET RESEARCH FIRM HE ESTIMATES THAT HEWLETTPACKARD DOUBLED ITS SHARE OF EUROPEAN PC REVENUES TO 44 IN LAST YEAR'S THIRD QUARTER THE MOST RECENT PERIOD FOR WHICH IT HAS COMPILED SUCH DATA THAT PUSHED IT TO FOURTH PLACE IN THE EUROPEAN MARKET LIKEWISE DIGITAL RAISED ITS SHARE OF EUROPEAN INDUSTRY REVENUES TO 24 FROM 14 A YEAR EARLIER THOUGH IT STILL ISN'T IN THE TOP 10 DATAQUEST SAYS IN THE US DIGITAL'S PC DRIVE HAS ALSO FARED WELL BUT HEWLETTPACKARD'S US MARKET SHARE STILL LAGS BEHIND ITS SHARE IN EUROPE AS THE COMPANY HAS YET TO SHED FULLY ITS REPUTATION AS AN ALSORAN DATAQUEST'S MR FELL WARNS OF PITFALLS AHEAD FOR BOTH COMPANIES MOST OF DIGITAL'S PC SALES IN EUROPE HAVE BEEN TO CLIENTS THAT ALREADY OWN OTHER DIGITAL PRODUCTS A RELATIVELY EASY SELL WHAT THEY'VE GOT TO DO NOW IS BREAK OUT OF THAT BUSINESS MODEL AND ATTRACT BRANDNEW CUSTOMERS HE SAYS AND HP THOUGH BIGGER THAN DIGITAL TODAY IN EUROPE IS STILL A LONG WAY FROM CHALLENGING IBM COMPAQ AND APPLE COMPUTER INC WHICH TOGETHER COMMANDED 385 OF EUROPEAN PC MARKET REVENUES IN LAST YEAR'S THIRD QUARTER THERE'S A GREAT LEAP THAT NEEDS TO BE MADE TO START CATCHING UP HE SAYS CERTAINLY A FEW YEARS AGO MANY ANALYSTS SCOFFED AT EITHER COMPANY'S CHANCES OF GETTING ANYWHERE IN THE PC BUSINESS DIGITAL'S MOST FAMOUS FLOP WAS IN 1983 WITH ITS RAINBOW PC MODEL WHICH COULDN'T USE INDUSTRYSTANDARD SOFTWARE AND HEWLETTPACKARD HAD TRIED AND FAILED REPEATEDLY TO MAKE A MARK IN PCSPARTLY BECAUSE IT KEPT OVERCHARGING FOR THEM ANALYSTS SAY WHEN THE COMPANY BEGAN PLANNING YET ANOTHER ATTEMPT IN MAY 1992 EVEN SOME OF ITS OWN EMPLOYEES WERE SKEPTICAL SAYS MR SOZONOFF PEOPLE SAID IT WAS ALMOST LIKE A JOKE HE RECALLS BUT OPERATION HURRICANE AS HP'S EUROPEAN MANAGERS CODENAMED THEIR NEW PC CAMPAIGN WAS BETTER PLANNED THAN PAST EFFORTS WORLDWIDE THE COMPANY BEGAN OFFERING A RANGE OF NEW PC MODELS AND SET ITS PRICES TO BE WITHIN A FEW PERCENTAGE POINTS OF COMPAQ'S MODELS THE INDUSTRY'S MOSTCOMMON BENCHMARKS FOR PC PRICES TO PERMIT SUCH PRICES IT CUT ITS COSTS BY REORGANIZING ITS PC OPERATIONS IN EUROPE IT TOLD ITS 100 COMPUTERPRODUCTS SALESPEOPLE THAT THOU SHALT NOT LOSE AN ORDER TO COMPETITORS MR SOZONOFF SAYS AND REQUIRED INTERNAL REVIEWS OF ANY BIG LOSSES MOST IMPORTANT ANALYSTS SAY IT SUCCEEDED IN GETTING MANY OF ITS COMPUTERPRINTER DEALERS IN EUROPE TO START STOCKING ITS PCS AS WELL BY NO MEANS AN EASY FEAT MANY ALREADY STOCKED IBM COMPAQ AND OTHER PC MODELS AND WOULDN'T NORMALLY WANT THE EXTRA COSTS OF YET ANOTHER BRAND THAT'S WHERE HP'S LUCK CAME IN HANDY AS THE BOOM IN BRANDNAME COMPUTERS BEGAN AND SOME IBM AND COMPAQ MODELS WERE IN SHORT SUPPLY MANY DEALERS BEGAN OFFERING THEIR CUSTOMERS IMMEDIATE DELIVERIES OF HP PCS INSTEAD DIGITAL BY CONTRAST WAS STARTING FROM EVEN FURTHER BEHIND THAN HEWLETTPACKARD UNTIL A FEW YEARS AGO IT DIDN'T EVEN HAVE MANY PC MODELS OF ITS OWN DESIGN PREFERRING TO RESELL OTHER BRANDS UNDER ITS OWN NAME GRADUALLY IT CORRECTED THAT MANUFACTURING NEW MODELS OF ITS OWN AND CUTTING OUTSIDE PURCHASES THAT REDUCED DIGITAL'S COSTS AND LET IT SET PRICES AT ABOUT INDUSTRY AVERAGES IT MADE ITS WORLDWIDE PC BUSINESS A SEPARATE UNIT TO CUT BUREAUCRACY AND COSTS IT ALSO ASSEMBLED A NEW TEAM OF EXPERIENCED PC MANAGERSLED IN EUROPE BY BERNARD AUER A DEFECTOR FROM COMPAQ AND APPLYING THE SAME BASIC MARKETING FORMULAS IN EUROPE AS IN THE US IT SENT PRODUCT CATALOGS AND SALESPEOPLE TO MANY EXISTING DIGITAL CUSTOMERS TO GET DIGITAL'S PCS ON THEIR CORPORATE PROCUREMENT LISTS IN EUROPE TODAY MR AUER SAYS ABOUT 80 OF DIGITAL'S PC SALES ARE TO OWNERS OF OTHER DIGITAL PRODUCTS TO BROADEN THE CLIENTELE MR AUER SAYS HE AIMS TO ENLIST MORE INDEPENDENT PC DISTRIBUTORS AND DEALERS RATHER THAN CONTINUE RELYING ON DIGITAL'S OWN SALES FORCEPROVIDED INTERNAL OBSTACLES ALLOW IT FOR INSTANCE HE SAYS HE WANTS TO AWARD BONUSES TO DIGITAL SALESPEOPLE WHO PASS ON GOOD SALES LEADS TO INDEPENDENT DIGITAL DEALERS A COMMON PRACTICE IN THE PC INDUSTRY THAT KEEPS DEALERS HAPPY AND SALES COSTS LOW BUT THAT'S A BREAK FROM DIGITAL TRADITION HE SAYS THAT WHILE DIGITAL'S NORDICCOUNTRY MANAGERS PLAN TO START THE BONUSES ITS BRITISH MANAGERS THINK THEY'RE ALREADY DOING WELL ENOUGH WITHOUT SUCH INCENTIVES NATURALLY BOTH COMPANIES HAVE BIG PLANS FOR THE FUTURE DIGITAL'S MR AUER AIMS TO DOUBLE EUROPEAN PC SALES IN THE CURRENT FISCAL YEAR THAT BEGAN LAST JULY 4 TO MORE THAN 300000 MACHINES WORTH MORE THAN 500 MILLION HEWLETTPACKARD'S MR SOZONOFF SAYS HE AIMS THIS YEAR TO REPEAT LAST YEAR'S PERFORMANCE OF INCREASING EUROPEAN PC REVENUES BY ABOUT 60 THOUGH HE DECLINES TO PROVIDE REVENUE FIGURES HE INDICATES HP LAST YEAR SOLD MORE THAN 350000 PCS IN EUROPE AT AVERAGE WHOLESALE PRICES OF 1800 APIECE THAT'S WORTH AT LEAST 630 MILLION HIS ULTIMATE GOAL HE SAYS IS 7 TO 10 OF THE EUROPEAN PC MARKET TO GET THERE MR SOZONOFF ISN'T PLANNING ANY SPECIAL NEW TRICKS THERE REALLY IS NO MAGIC TO EXPANDING A PC BUSINESS HE SAYS THE KEY THING IS TO KEEP THE WHEELS CHURNING 9401070123 940107 BRAZIL VEHICLE OUTPUT SETS A RECORD FOR 1993 SPECIAL TO THE WALL STREET JOURNAL SAO PAULO BRAZIL BRAZIL'S AUTO INDUSTRY SAID IT SET A PRODUCTION RECORD IN 1993 WITH 14 MILLION VEHICLES THE INDUSTRY SAID WHEN YOU SET A GOAL OF 12 MILLION VEHICLES AND YOU SEE THESE FIGURES YOU CAN ONLY BE HAPPY SAID LUIZ ADELAR SCHEUER PRESIDENT OF THE NATIONAL ASSOCIATION OF AUTOMOTIVE MANUFACTURERS IN DECEMBER PRODUCTION WAS UP 45 FROM A YEAR EARLIER BUT WAS DOWN 17 FROM NOVEMBER THE INDUSTRY PRODUCED 111000 VEHICLES IN DECEMBER COMPARED WITH 76000 A YEAR EARLIER AND 133000 IN NOVEMBER THE INDUSTRY EXPORTED 331000 VEHICLES IN 1993 DOWN 33 FROM 342000 IN 1992 EXPORTS IN DECEMBER TOTALED 27200 VEHICLES UP 53 FROM A YEAR EARLIER BUT DOWN 23 FROM NOVEMBER BRAZIL EXPORTS AUTOS PRIMARILY TO ARGENTINA AND OTHER LATIN AMERICAN COUNTRIES THE FIGURES INCLUDE PASSENGER CARS TRUCKS AND BUSES 9401070122 940107 INTERNATIONAL BUNDESBANK WON'T CHANGE INTEREST RATES BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT BUNDESBANK PRESIDENT HANS TIETMEYER SAID THE GERMAN CENTRAL BANK WOULD KEEP INTERESTRATE POLICY UNCHANGED FOR THE TIME BEING BUT HE WOULDN'T RULE OUT FURTHER REDUCTIONS IF CONDITIONS WERE RIGHT THE BUNDESBANK'S POLICYSETTING CENTRAL BANK COUNCIL DECIDED YESTERDAY IN ITS FIRST MEETING OF THE YEAR TO KEEP ITS DISCOUNT AND LOMBARD RATES AT CURRENT LEVELS IT ALSO KEPT THE INTEREST RATE ON ITS OPENMARKET SECURITIESREPURCHASE AGREEMENTS FIXED AT 6 FOR TWO WEEKS WE WANTED TO SHOW THAT WE DON'T PLAN ANY CHANGES IN OUR POLICY NOW AND IN THE FORESEEABLE FUTURE MR TIETMEYER TOLD A GROUP OF FOREIGN JOURNALISTS LAST NIGHT AFTER THE COUNCIL'S DECISION WE WILL WAIT AND SEE HOW THINGS DEVELOP THE BUNDESBANK LAST REDUCED ITS OFFICIAL INTEREST RATES OCT 22 WHEN IT BROUGHT ITS DISCOUNT RATE THE RATE CHARGED FOR OVERNIGHT LOANS TO BANKS DOWN TO 575 AND LOWERED ITS LOMBARD RATE WHICH THE BANK CHARGES ON BORROWINGS THAT USE SECURITIES AS COLLATERAL TO 675 SINCE THEN THE CENTRAL BANK HAS BEEN SEEN INTERRUPTING ITS GRADUAL EASING PROCESS AS GROWTH IN ITS M3 BROADLYDEFINED MONEY SUPPLY CONTINUED TO OVERSHOOT GROWTH TARGETS IN LATE 1993 MR TIETMEYER SAID THAT POLICY COULD CHANGE IF INFLATION INDICATORS TURN MORE FAVORABLE EARLIER IN THE WEEK BUNDESBANK COUNCIL MEMBER HANSJUERGEN KOEBNICK SAID CENTRAL BANK POLICY MAKERS WERE PLANNING TO BRING SHORTTERM INTEREST RATES DOWN FURTHER OVER THE COURSE OF THE YEAR CLAIMING THEY WERE TOO HIGH FOR A COUNTRY STILL IN RECESSION MR TIETMEYER SAID HE DIDN'T DISAGREE WITH MR KOEBNICK BUT ADDED THAT HE MIGHT HAVE PUT IT A LITTLE DIFFERENTLY I HAVE ALWAYS SAID THAT OUR M3 TARGET DOESN'T RULE OUT FURTHER INTERESTRATE REDUCTIONS IF THE OTHER PREREQUISITES ARE IN PLACE MR TIETMEYER SAID AMONG THEM ARE INFLATION AND SUCH FACTORS AS THE EXCHANGE RATE FOR THE MARK WHICH MR TIETMEYER SAID THE BUNDESBANK CONTINUES TO MONITOR CLOSELY MR TIETMEYER ALSO SAID HE DIDN'T EXPECT A BROADBASED RECOVERY IN THE WESTERN GERMAN ECONOMY THIS YEAR HE SAID THAT ONLY EXPORTS CAN PULL THE ECONOMY OUT OF ITS MALAISE ASSERTING THAT THE GERMAN ECONOMY HAS NEVER RECOVERED FROM PAST SLUMPS ON ITS DOMESTIC ECONOMY ALONE BUNDESBANK OFFICIALS FEAR THAT MOVING SHORTTERM RATES DOWN TOO QUICKLY COULD REKINDLE INFLATION PRESSURES AND UNDERMINE THE CONFIDENCE OF FINANCIAL MARKETS IN THE MARK THIS COULD SLOW THE INFLOW OF CAPITAL GERMAN NEEDS TO FINANCE PUBLICSECTOR AND CURRENT ACCOUNT DEFICITS CAPITAL SHORTAGES COMBINED WITH NEW INFLATION CONCERNS COULD FORCE LONGTERM INTEREST RATES BACK UP FROM NEARHISTORIC LOWS OF 544 CURRENTLY THE BUNDESBANK ASSERTS THAT LONGTERM RATES ARE THE DECISIVE RATES FOR INVESTMENT DECISIONS BY GERMAN INDUSTRY BUT THE BUNDESBANK'S GOSLOW POLICY HAS BEEN CRITICIZED FOR PROLONGING GERMANY'S ECONOMIC SLUMP 9401070121 940107 TECHNOLOGY & MEDICINE EPA TO EXPAND LIST OF CHEMICALS ON TOXIC REPORT BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED DOUBLING THE NUMBER OF CHEMICALS WHOSE RELEASE INTO WATER OR AIR MUST BE REPORTED TO THE AGENCY BY MANUFACTURERS IN A RULE ISSUED UNDER THE 1986 EMERGENCY PLANNING AND COMMUNITY RIGHTTOKNOW ACT THE EPA PROPOSED ADDING 313 CHEMICALS TO THE LIST OF 320 CHEMICALS WHOSE EMISSIONS MANUFACTURERS ARE REQUIRED TO REPORT FOR THE EPA'S ANNUAL TOXIC RELEASE INVENTORY THE INCREASED REPORTING REQUIREMENTS WOULD BE ESPECIALLY SIGNIFICANT FOR PESTICIDE MANUFACTURERS AND PROCESSORS WHO EMIT MORE THAN HALF THE CHEMICALS THAT THE EPA PROPOSES TO ADD TO THE LIST UNDER THE PLAN THE PESTICIDE INDUSTRY WOULD HAVE TO MONITOR EMISSIONS OF 170 NEW CHEMICALS IN ADDITION TO THE 24 CHEMICALS THEY CURRENTLY MONITOR OTHER AFFECTED INDUSTRIES INCLUDE CHEMICAL MANUFACTURERS METAL FABRICATORS AND FOOD PROCESSORS THOMAS GILDING ENVIRONMENTAL AFFAIRS DIRECTOR FOR THE NATIONAL AGRICULTURAL CHEMICALS ASSOCIATION WHICH REPRESENTS THE PESTICIDE INDUSTRY SAID HIS GROUP WOULD SUPPORT THE NEW REQUIREMENT IF THE CRITERIA FOR INCLUDING THE NEW CHEMICALS ARE BASED ON RISK BUT IF A CHEMICAL IS ON THERE BECAUSE IT HAPPENS TO BE CALLED A PESTICIDE THEN WE'LL HAVE AN ISSUE WITH THAT HE SAID SINCE 1989 THE EPA HAS USED THE TOXIC RELEASE INVENTORY TO ALERT COMMUNITIES TO POTENTIALLY HARMFUL EMISSIONS OF CHEMICALS BY FACTORIES THE DATA HAVE BEEN A SIGNIFICANT PROD TO INDUSTRY TO REDUCE EMISSIONS SERVING AS AN EYE OPENER TO LOTS OF CEOS WHO ARE EMBARRASSED BY THE PUBLICITY THE FINDINGS RECEIVE ACCORDING TO EPA ADMINISTRATOR CAROL BROWNER THE EPA ALSO USES THE DATA IN ITS OWN ENFORCEMENT ACTIONS IN ADDITION TO PROPOSING YESTERDAY'S RULE THE AGENCY PLANS TO PROPOSE A REGULATION EXPANDING THE NUMBER OF INDUSTRIAL SECTORS THAT MUST REPORT TO THE TOXIC RELEASE INVENTORY CURRENTLY ONLY MANUFACTURERS ARE COVERED THE AGENCY IS CONSIDERING ADDING UTILITIES WHOLESALE DISTRIBUTORS AND MINING CONCERNS AMONG OTHERS 9401070120 940107 FOREIGN EXCHANGE DOLLAR RISES AGAINST MOST CURRENCIES DESPITE BEARISH US JOBLESS REPORT BY GARY ROSENBERGER AND XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ROSE AGAINST EUROPEAN CURRENCIES UNDETERRED BY BEARISH US JOBLESS DATA AND A DECISION BY THE BUNDESBANK TO LEAVE GERMAN INTEREST RATES UNCHANGED BUT THE US CURRENCY FELL SLIGHTLY AGAINST THE YEN DAMPED BY REPORTS DURING ASIAN TRADING THAT US ECONOMIST C FRED BERGSTEN HAD URGED THE FEDERAL RESERVE TO PROP UP THE JAPANESE CURRENCY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17445 MARKS UP FROM 17395 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11265 YEN DOWN FROM 11290 YEN STERLING WAS TRADING AT 14815 DOWN FROM 14872 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 11255 YEN AND AT 17435 MARKS THE DOLLAR BEGAN THE DAY TESTING THE DOWNSIDE WITH MR BERGSTEN'S REMARKS PROVIDING AN EARLY EXCUSE TO SELL THE US CURRENCY AGAINST THE YEN THE DOLLAR REMAINED MOSTLY STAGNANT UNTIL IT WENT INTO A SKID AFTER THE BUNDESBANK ANNOUNCED ITS INTENTION TO LEAVE ITS KEY LOMBARD AND DISCOUNT RATES UNDISTURBED AN HOUR LATER DATA WERE RELEASED SHOWING US JOBLESS CLAIMS UP 70000 IN THE WEEK ENDED JAN 1 THAT WAS ALMOST THREE TIMES THE EXPECTED RATE OF INCREASE AND IT APPEARED TO UNDERMINE WIDESPREAD HOPES THAT TODAY'S NONFARM PAYROLL DATA FOR DECEMBER WOULD PROVE BULLISH FOR THE US ECONOMY THE DOUBLE BLOW PUSHED THE DOLLAR TO A DAY'S LOW OF 17350 MARKS BUT IT HELD FAST AT THAT LEVEL BOOSTING TRADERS' OPTIMISM ABOUT THE US CURRENCY'S INNATE STRENGTH WE HAD LOUSY JOBLESS NUMBERS YET FAILED TO BREAK BELOW 17350 MARKS SAID DAVID WALKER SENIOR MANAGER OF TORONTO DOMINION SECURITIES INC THAT CAUSED PEOPLE TO TEST THE OTHER END OF THE RANGE HE ADDED AND TARGET LAST YEAR'S HIGH OF 17473 MARKS TRADERS SAID TODAY'S US MONTHLY NONFARM PAYROLL NUMBERS WOULD BE A CRITICAL TEST OF DOLLAR MOVEMENTS THE NUMBERS ARE OFTEN SEEN AS AN IMPORTANT MEASURE OF THE NATION'S ECONOMIC HEALTH AND BULLISH EXPECTATIONS ABOUT THOSE NUMBERS WERE CREDITED FOR SOME OF THE DOLLAR'S RISE LATE YESTERDAY ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT PREDICTED NONFARM PAYROLLS ROSE 239000 FOR DECEMBER SOME TRADERS HOWEVER SAY THE MARKET MAY BE TOO OPTIMISTIC AND THAT COULD PUT THE DOLLAR AT RISK TODAY IF THE PAYROLL NUMBER IS ANYTHING SHORT OF SPECTACULAR AS IF TO SUPPORT THAT CAUTION US LABOR SECRETARY ROBERT REICH SAID EARLY YESTERDAY THAT THE MONTHLY DATA WOULD SHOW A RISE OF 160000200000 THE BUREAU OF LABOR STATISTICS LATER EMPHASIZED THAT MR REICH HADN'T SEEN THE ACTUAL DECEMBER FIGURES AND WAS MAKING ONLY AN ESTIMATE IF TODAY'S EMPLOYMENT NUMBERS ARE SOFT WE MAY WELL SEE THE DOLLAR DROP TO 16900 MARKS AGAIN SAID CARL AMENDOLA VICE PRESIDENT OF BAYERISCHE HYPOTHEKENUND WECHSELBANK AG YET THE DOLLAR HELD FIRM YESTERDAY AGAINST THE MARK DESPITE AN ANNOUNCEMENT THAT THE BUNDESBANK WOULD LEAVE ITS MAIN INTEREST RATES UNCHANGED THE GERMAN CENTRAL BANK'S DECISION CAME AGAINST A BACKDROP OF A CURRENCY THAT HAD BEEN WEAKENING STEADILY SINCE THE CHRISTMAS HOLIDAYS MR AMENDOLA ARGUED THAT TRADERS WERE WELL PREPARED FOR THE BUNDESBANK'S NEWS THE MARKET WAS 75 SURE NOTHING WOULD HAPPEN AT THE 17400 LEVEL HE SAID NOTING THAT THE BUNDESBANK'S DIRECTORS FEARED THAT A RATE CUT WOULD FURTHER WEAKEN THE MARK AND POSSIBLY FUEL DOMESTIC INFLATION BY RAISING IMPORT PRICES 9401070119 940107 QUARTERLY MUTUAL FUNDS REVIEW CLOSEDEND BOND FUNDS LOOK CHEAP BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL DEPARTMENT STORES AREN'T THE ONLY PLACE FOR AFTERCHRISTMAS SALES BARGAINS ALSO BECKON IN PUBLICLY TRADED BOND FUNDS THERE ARE LOTS OF BARGAINS AROUND IN SUCH FUNDS SAYS THOMAS HERZFELD PRESIDENT OF THOMAS HERZFELD ADVISORS A MIAMI FIRM SPECIALIZING IN PUBLICLY TRADED MUTUAL FUNDS THIS IS HUNTING SEASON FOR CLOSEDEND BOND FUNDS AMONG MR HERZFELD'S FAVORITES ARE NUVEEN INSURED PREMIUM INCOME MUNICIPAL 2 AND NUVEEN PREMIUM INCOME MUNICIPAL 4 CURRENTLY AT DISCOUNTS OF 76 AND 97 RESPECTIVELY THESE TAXEXEMPT BOND FUNDS CAME TO MARKET LAST YEAR AT 15 A SHARE A 68 PREMIUM AND NOW TRADE AT ABOUT 13 A SHARE THEIR ASSETS MEANWHILE HAVE EDGED UP IN VALUE AND SHOULD CONTINUE TO GAIN ON RISING INVESTOR DEMAND AS THE TAX SEASON APPROACHES HE SAYS OF COURSE THE OUTLOOK FOR INTEREST RATES MAY JUSTIFY BOND FUNDS' DISCOUNTS AND THERE'S NO GUARANTEE THEIR CHEAP PRICES WON'T GET EVEN CHEAPER IN THE FUTURE THE APPARENT BARGAINS MAY ACCURATELY REFLECT REAL RISKS LURKING IN THESE FUNDS SOME ANALYSTS SAY IN PARTICULAR THE ANALYSTS POINT TO RIGHTS OFFERINGS NOW BEING PROMOTED BY CHICAGOBASED JOHN NUVEEN & CO ONE OF THE US'S BIGGEST SPONSORS OF CLOSEDEND BOND FUNDS TWO OF NUVEEN'S BIGGEST OLDEST FUNDS NUVEEN MUNICIPAL VALUE FUND AND NUVEEN PREMIUM INCOME MUNICIPAL FUND A PREDECESSOR TO MR HERZFELD'S PICKS ARE TARGETS OF SUCH OFFERINGS WHICH GIVE CURRENT SHAREHOLDERS THE RIGHT TO BUY NEW SHARES BEING ISSUED BY A FUND RIGHTS OFFERINGS ARE CONSIDERED TO BE BAD FOR FUND SHAREHOLDERS BECAUSE THEY DILUTE THEIR HOLDINGS AND OFTEN LEAD THEM TO BUY MORE SHARES WHEN PRICES ARE PEAKING THE MARKET IS SPOOKED THAT MORE SUCH DILUTING RIGHTS ISSUES WILL FOLLOW BUT FANS OF CLOSEDEND FUNDS SAY THE POTENTIAL HAZARDS ALREADY HAVE BEEN DISCOUNTED IN TODAY'S LOW PRICES AT LEAST TWO DOZEN OF PUBLICLY TRADED BOND FUNDS NOW ALLOW INVESTORS TO BUY A DOLLAR'S WORTH OF DIVERSIFIED BOND HOLDINGS FOR AS LITTLE AS 90 CENTS THEY SAY THAT'S A SWITCH FROM JUST A FEW MONTHS AGO WHEN THE SAME FUNDS SOLD FOR PRICES THAT WERE HIGHER THAN THE VALUE OF THE UNDERLYING BONDS PUBLICLY TRADED FUNDS OR CLOSEDEND FUNDS RESEMBLE NORMAL OPENEND MUTUAL FUNDS BUT WITH A FEW KEY DIFFERENCES UNLIKE OPENEND FUNDS WHICH CONSTANTLY ADJUST THE NUMBER OF SHARES OUTSTANDING IN LINE WITH INVESTOR DEMAND CLOSEDEND FUNDS ISSUE A FIXED NUMBER OF SHARES WHEN INDIVIDUALS PURCHASE OR CASH IN ON CLOSEDEND FUNDS THEY'RE AT THE MERCY OF WHAT OTHER INVESTORS THINK THOSE SHARES ARE WORTH AS A RESULT PRICES OF CLOSEDEND FUNDS UNLIKE THOSE OF OPENEND FUNDS DON'T NECESSARILY MATCH THEIR NET ASSET VALUES OR THE PERSHARE VALUE OF THE ASSETS IN THE FUNDS' PORTFOLIOS DEPENDING ON PREVAILING MARKET VIEWS PRICES MAY RISE ABOVE THE FUNDS' NET ASSET VALUES OR AS IS TYPICAL NOW SINK BELOW THEM IDENTIFYING A CHEAP CLOSEDEND FUND IS EASY IT MERELY REQUIRES COMPARING THE FUND'S PUBLICLY TRADED SHARE PRICE WITH ITS NET ASSET VALUE PER SHARE FUNDS USUALLY CALCULATE THEIR PERSHARE NET ASSET VALUE AT LEAST ONCE A WEEK THE WALL STREET JOURNAL PUBLISHES THIS DATA ON MONDAYS ALONG WITH THE FUND'S SHARE PRICE AND THE SIZE OF THE DISCOUNT OR PREMIUM DISCOUNTS PREDOMINATE AMONG BOND FUNDS LATELY CLOSEDEND FUNDS SPECIALIZING IN TAXEXEMPT MUNICIPAL BONDS HAVE BEEN TRADING AT AN AVERAGE DISCOUNT OF 42 ACCORDING TO LIPPER ANALYTICAL SERVICES LAST SUMMER THESE SAME FUNDS TRADED AT AN AVERAGE PREMIUM OF 07 SIMILARLY CLOSEDEND FUNDS THAT INVEST IN TAXABLE BONDS HAVE BEEN SHOWING AN AVERAGE DISCOUNT OF 14 COMPARED WITH AN AVERAGE PREMIUM OF 06 AS RECENTLY AS SEPT 30 WHY THE TURNABOUT SUPPLY HAS DEMONSTRABLY EXCEEDED DEMAND SAYS RON OLIN OF DEEP DISCOUNT ADVISERS AN ASHEVILLE NC MONEY MANAGER SPECIALIZING IN CLOSEDEND FUNDS ON THE SUPPLY SIDE FUND SPONSORS FLOODED THE MARKET LAST YEAR WITH NEW FUND OFFERINGS DESIGNED TO PROFIT FROM THENFALLING INTEREST RATES DEMAND MEANWHILE HAS FALLEN AFTER A REBOUND IN RATES IN THE AUTUMN DAMPED ENTHUSIASM FOR BONDS BETWEEN THOSE TWO FORCES DEMAND HAS BEEN SATED SAYS CATHERINE GILLIS EDITOR OF MORNINGSTAR CLOSEDEND FUNDS A CHICAGO NEWSLETTER MAKING MATTERS WORSE WERE NUVEEN'S SURPRISE ANNOUNCEMENTS OF RIGHTS OFFERINGS IN NOVEMBER TERMS OF THOSE TWO OFFERINGS ALLOW NUVEEN TO ADD AT MOST ONE NEW SHARE FOR EVERY THREE SHARES OUTSTANDING PRICES FOR THE OFFERINGS WILL BE SET AT THE LOWER OF THE FUNDS' NET ASSET VALUE ON JAN 21 OR 95 OF THE FUNDS' AVERAGE MARKET PRICE FOR THE WEEK ENDING JAN 21 FUND WATCHERS SAY NUVEEN'S OFFERINGS ARE EVEN WORSE FOR INVESTORS THAN THEY MAY APPEAR THAT'S BECAUSE BROKERAGE HOUSES AND INVESTMENT ADVISERS WILL SKIM AS MUCH AS 3 OF THE PROCEEDS RAISED MR OLIN CALLS THE FEES TOTALLY UNNECESSARY AND COSTLY TO SHAREHOLDERS NOTING THAT SOME TOTALLY SUCCESSFUL RIGHTS OFFERINGS FOR BOND FUNDS HAVEN'T CHARGED SUCH FEES NUVEEN VICE PRESIDENT JEFF KRATZ ARGUES THAT BROKERS AND OTHER ADVISERS SHOULD BE REWARDED FOR EXPLAINING THE COMPLEXITIES OF THE OFFERINGS TO FUNDHOLDERS FAR FROM HURTING INVESTORS HE CONTENDS THE OFFERINGS ALLOW THEM TO BOOST HOLDINGS AHEAD OF AN EXPECTED RALLY IN MUNICIPAL BONDS BUT MR KRATZ ACKNOWLEDGES THAT NUVEEN HAS A FINANCIAL STAKE IN THE DEAL AFTER SWELLING THE FUNDS THE COMPANY WILL RAKE IN MORE ANNUAL MANAGEMENT FEES THE FACT THAT NUVEEN ISN'T RULING OUT MORE RIGHTS OFFERINGS HAS DEPRESSED PRICES OF MANY NUVEEN MUNICIPAL FUNDS AT TODAY'S PRICES MANY OF THOSE FUNDS ARE ATTRACTIVE ESPECIALLY BECAUSE MANY EXPERTS DO EXPECT MUNICIPALS TO DO WELL AS TAX DEADLINES APPROACH IN APRIL WHEN TAX BILLS ARE PAID THAT'S WHEN IT WILL HIT PEOPLE HOW MUCH THEY NEED TO SHELTER THEIR INCOME SAYS STUART GOLDBERG FORMER HEAD OF MUTUALFUND RESEARCH AT MERRILL LYNCH & CO BESIDES THE TAXEXEMPT FUNDS SUGGESTED BY MR HERZFELD MR OLIN FAVORS OTHER HEAVILY DISCOUNTED NUVEEN MUNICIPAL FUNDS IN ITS NUMBERED PREMIUM SERIES BECAUSE THESE FUNDS ARE LESS THAN A YEAR OLD THEY'RE UNLIKELY CANDIDATES FOR RIGHTS OFFERINGS HE SAYS HE PREFERS FUNDS WITH DISCOUNTS OF ABOUT 10 OR MORE AMONG TAXABLE BOND FUNDS MR OLIN LIKES FORT DEARBORN INCOME SECURITIES FUND A CONSERVATIVELY RUN FUND THAT TRADES AT A 52 DISCOUNT THIS TOO IS AN UNLIKELY CANDIDATE FOR A RIGHTS OFFERING BECAUSE ITS SPONSOR JUST COMPLETED ONE DEC 10 FOR THE ADVENTUROUS MR HERZFELD RECOMMENDS HYPERION 1999 TERM TRUST A TAXABLE BOND FUND THAT DIPPED DISASTROUSLY INTO RISKY MORTGAGEBACKED SECURITIES A PENDING SHAREHOLDER LAWSUIT AGAINST THE FUND HAS HAMMERED ITS IMAGE AS WELL AS ITS SHARE PRICE MR HERZFELD THINKS IT'S A BARGAIN AT TODAY'S 77 DISCOUNT GIVEN THE FACT THAT THE LEGAL PROBLEMS MEAN THE FUND SHOULD ACT MORE CONSERVATIVELY FROM NOW ON 9401070118 940107 AIR FORCE RECLAIMS LOST 360000 GIZMO FROM AUCTIONGOER A MECHANIC PAID 75 FOR IT THOUGH ONLY CIVILIAN USE IS CLOBBERING LOCAL TVS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A 360000 PIECE OF A PENTAGON SATELLITE WAS MISPLACED AND THEN BOUGHT FOR 75 AT AN AUCTION BY AN AUTOMOBILE MECHANIC IN RURAL NORTH CAROLINA ROGER SPILLMAN WHO ALSO SELLS AUTO PARTS AND DELIVERS FUEL OIL IN COOLEEMEE NC SAID AIR FORCE INVESTIGATORS WEREN'T EVEN VERY POLITE IN RETRIEVING THE PART A SHOEBOXSIZED RADIO AMPLIFIER INTENDED FOR THE MILSTAR MILITARY COMMUNICATIONS SATELLITE THEY WERE A LITTLE BIT HUFFY WHEN THEY TOOK IT FROM THE HOUSE OF A HAMRADIO OPERATOR TO WHOM HE HAD LENT THE PART MR SPILLMAN SAID IN AN INTERVIEW THE SAGA OF THE MISSING PART WAS REPORTED YESTERDAY IN THE WINSTONSALEM NC JOURNAL MR SPILLMAN SAID HE HASN'T BEEN REIMBURSED YET BY THE AIR FORCE BUT ADDED THAT HIS LAWYER WAS TOLD BY AN AIR FORCE OFFICIAL THAT IF HE HAD ATTEMPTED TO USE THE DEVICE IN HIS OWN RADIOS IT WOULD HAVE KNOCKED OUT EVERY TV FOR TWO MILES IN EVERY DIRECTION THE AIR FORCE DIDN'T HAVE AN IMMEDIATE COMMENT BUT A SPOKESMAN FOR THE DEFENSE LOGISTICS AGENCY WHICH OPERATES WAREHOUSES FOR THE AIR FORCE SAID THAT THE PAPERWORK FOR THE AMPLIFIER APPARENTLY WAS LOST BY WATKINS MOTOR LINES INC THE TRUCKING COMPANY THAT WAS SUPPOSED TO CONVEY THE PART FROM ITS MAKER RAYTHEON CO TO MCCLELLAN AIR FORCE BASE IN SACRAMENTO CALIF WATKINS THEN APPARENTLY PUT THE PIECE IN A LOSTFREIGHT COLLECTION WHICH IT EVENTUALLY TURNED OVER TO AN AUCTION HOUSE BILL PAUL A VICE PRESIDENT OF THE LAKELAND FLA TRANSPORTATION CONCERN DECLINED TO COMMENT IT ISN'T CLEAR WHY IT TOOK SEVERAL MONTHS FOR THE AIR FORCE TO RECOGNIZE THAT THE EXPENSIVE PIECE OF EQUIPMENT HADN'T BEEN DELIVERED INDEED IT APPEARS THAT THE AIR FORCE DIDN'T DETECT THE MISPLACEMENT AND INSTEAD WAS INFORMED OF THE SITUATION BY RAYTHEON AFTER MR SPILLMAN'S FRIEND REPEATEDLY CONTACTED THE COMPANY SEEKING INSTRUCTIONS ON HOW TO USE THE AMPLIFIER THE EMBARRASSING INCIDENT CAN ONLY ADD TO THE TROUBLES OF THE MULTIBILLIONDOLLAR MILSTAR PROGRAM THE AIR FORCE RUNS THE PROGRAM BUT DOESN'T PARTICULARLY LIKE CARRYING ITS COSTS AND HAS TRIED TO TRIM THE PROGRAM IN THE PAST ONLY TO BE REBUFFED BY THE JOINT CHIEFS OF STAFF A RECENT RAND CORP STUDY CRITICIZED THE PROGRAM WHICH IS BEING INVESTIGATED BY A CONGRESSIONAL COMMITTEE 9401070117 940107 TECHNOLOGY & MEDICINE COPLEY'S DRUG RECALL SENDS STOCK DOWN IN TRADING YESTERDAY CANTON MASS COPLEY PHARMACEUTICAL INC'S NATIONWIDE RECALL OF ITS ASTHMA DRUG ALBUTEROL SENT A CHILL THROUGH THE MARKET YESTERDAY IN UNUSUALLY ACTIVE OVERTHECOUNTER TRADING COPLEY SHARES WERE QUOTED AT 2950 DOWN 8 A GERMAN COMPANY HOECHST CELANESE CORP LAST YEAR ACQUIRED 51 OF THE GENERIC DRUG MANUFACTURER FOR 546 MILLION COPLEY SAID IT RECALLED ALBUTEROL SULFATE INHALATION SOLUTION 05 BECAUSE A POTENTIALLY HARMFUL BACTERIA PSEUDOMONAS FLUORESCENS WAS FOUND IN SOME MANUFACTURING UNITS THE COMPANY'S MEDICAL DIRECTOR KENNETH ZACK SAID THAT THE RECALL IS PRECAUTIONARY AND THAT NO CONSUMERS ARE KNOWN TO HAVE BEEN AFFECTED THIS IS NOT A SITUATION FOR PEOPLE TO PANIC DR ZACK SAID NONETHELESS THE MARKET WAS JITTERY ALBUTEROL IS A SIGNIFICENT COPLEY PRODUCT THE COMPANY'S SALES OF AUTONOMIC DRUGS INCLUDING ALBUTEROL ACCOUNT FOR ABOUT 14 OF ITS SALES COPLEY ESTIMATED THE RECALL WILL COST 6 MILLION OVER THE NEXT SIX MONTHS FOR THE NINE MONTHS ENDED OCT 31 COPLEY REPORTED NET INCOME OF 148 MILLION OR 80 CENTS A SHARE ON SALES OF 646 MILLION COPLEY SAID IT DISCOVERED THE CONTAMINATED UNITS THROUGH ITS OWN QUALITYCONTROL OPERATIONS COPLEY SAID IT WAS COOPERATING WITH THE FOOD AND DRUG ADMINISTRATION IN THE RECALL A SPOKESWOMAN FOR HOECHST SAID WE HAVE FULL CONFIDENCE IN COPLEY WE HAVE BOUGHT 51 OF COPLEY AND WE INTEND TO KEEP IT 9401070116 940107 ABREAST OF THE MARKET INDUSTRIALS BREAK THE 3800 BARRIER BUT ANALYSTS TAKE CAUTIOUS VIEW BY DAVE PETTIT AND THOMAS GRANAHAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE CRACKED THE 3800 LEVEL FOR THE FIRST TIME BUT THE NARROW NATURE OF THE ADVANCE LEFT ANALYSTS UNIMPRESSED STRENGTH IN THE BOND MARKET AND CONTINUED ENTHUSIASM FOR ECONOMICALLY SENSITIVE ISSUES PROPELLED THE INDUSTRIALS WHICH ROSE 506 OR 013 TO 380388 A SECOND STRAIGHT CLOSING HIGH THE AVERAGE HAD FLIRTED WITH 3800 FOR NEARLY TWO WEEKS CYCLICAL TRANSPORTATION ISSUES SURGED LIFTING THE DOW JONES TRANSPORTATION AVERAGE 2338 OR 131 TO 180221 ALSO A SECOND CONSECUTIVE RECORD IT ROSE 138 WEDNESDAY BUT ANALYSTS SAID THE RALLY THAT HAS POWERED THE DOW AVERAGES TO THESE HEIGHTS MIGHT BE LOSING STEAM MOST BROADBASED INDEXES LOST GROUND AND ADVANCERS BARELY TOPPED DECLINERS ON THE NEW YORK STOCK EXCHANGE 1076 TO 1054 VOLUME ON THE BIG BOARD MEANWHILE WAS HEAVY FOR A SECOND STRAIGHT DAY AT 3634 MILLION SHARES MORE THAN 3751 MILLION SHARES CHANGED HANDS WEDNESDAY A NEARLY FOURMONTH HIGH MODEST PRICE MOVEMENT IN THE FACE OF SUCH HEAVY ACTIVITY IS ANOTHER NEGATIVE INDICATOR ANALYSTS SAID MY GUT FEELING IS WE HAVE MOVED A LITTLE TOO FAR TOO FAST I THINK WE COULD GET A LITTLE CORRECTION SAID EDWARD COLLINS HEAD OF US EQUITY TRADING AT DAIWA SECURITIES EVEN THE STRENGTH OF THE HIGHFLYING CYCLICAL GROUP SHOWED SIGNS OF EASING ALLIEDSIGNAL ROSE 1 TO 77 1/2 GOODYEAR TIRE ADDED 1 TO 46 AND MINNESOTA MINING & MANUFACTURING CLIMBED 1 1/2 TO 107 1/4 BUT GENERAL MOTORS ADVANCED ONLY 1/4 AND DEERE 1/8 ONE REASON FOR CAUTION WAS A WEAKERTHANEXPECTED READING FROM THE LABOR DEPARTMENT SHOWING THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE SURGED 70000 LAST WEEK THE MORE IMPORTANT DECEMBER REPORT ON PAYROLLS COMES THIS MORNING THE STANDARD & POOR'S 500 STOCK INDEX LOST 043 OR 009 TO 46712 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 031 OR 012 TO 25900 AND THE DOW JONES EQUITY MARKET INDEX DROPPED 038 OR 009 TO 44219 THE NASDAQ STOCK MARKET THOUGH GAINED FOR A THIRD STRAIGHT DAY THE NASDAQ COMPOSITE INDEX WAS UP 236 OR 030 TO 78041 BUOYED BY STOCKS INCLUDING MICROSOFT WHICH ROSE 2 3/8 TO 84 5/8 MCI COMMUNICATIONS WHICH GAINED 1 3/8 TO 28 1/4 AND ADOBE SYSTEMS UP 4 TO 26 1/2 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX EXTENDED ITS WINNING STREAK TO 11 SESSIONS INCHING UP 021 OR 004 TO 47900 MANY RETAILING STOCKS HAD A ROUGH RIDE WITH CIRCUIT CITY STORES DOWN 4 1/2 OR 20 ON MARKETLEADING VOLUME OF 76 MILLION SHARES THE ELECTRONICS GOODS RETAILER SAID IT WILL BREAK FROM TRADITION AND POSSIBLY TAKE THE LEAD IN PRICECUTTING INITIATIVES IN CONSUMER ELECTRONICS RETAILING SHARES OF BEST BUY WHICH COMPETES WITH CIRCUIT CITY IN MANY REGIONS SKIDDED 7 1/2 OR 16 TO 39 3/4 TANDY CORP WHICH OPERATES RADIO SHACK STORES LOST 1 1/4 TO 46 1/8 INVESTORS ALSO WERE DISAPPOINTED BY THE GENERALLY LACKLUSTER TONE OF RETAILERS' DECEMBER SALES FIGURES RELEASED YESTERDAY SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH AMONG DECLINERS KMART SLUMPED 1 1/2 TO 19 1/2 WOOLWORTH 7/8 TO 24 7/8 JC PENNEY 1 TO 51 5/8 WALMART 7/8 TO 24 5/8 AND BARNES & NOBLE 2 TO 22 7/8 LIMITED INC THOUGH ROSE 7/8 TO 18 THE APPAREL RETAILER SAID DECEMBER SALES ROSE 8 GAP ROCKETED 3 1/8 TO 41 1/2 SALES WERE UP 14 IN THE PERIOD AT THE APPAREL STORE COMPANY COPLEY PHARMACEUTICAL PLUNGED 8 OR 213 TO 29 1/2 ON NEWS LATE WEDNESDAY THAT THE COMPANY IS VOLUNTARILY RECALLING ALL LOTS OF ITS 20MILLILITER VIALS OF ALBUTEROL SULFATE INHALATION SOLUTION COPLEY SAID THE MOVE WILL COST ABOUT 6 MILLION OVER THE CURRENT AND NEXT FISCAL QUARTER SHARES OF VALUE HEALTH JUMPED 3 1/4 OR 101 TO 35 1/2 AFTER THE COMPANY SAID FORD MOTOR AND THE UNITED AUTO WORKERS SELECTED ITS VALUERX UNIT TO ADMINISTER A NATIONWIDE RETAIL AND MAIL ORDER DRUGBENEFITS PROGRAM VALUE HEALTH SAID IT EXPECTS THE AGREEMENT TO PRODUCE 90 MILLION IN ANNUAL REVENUE TWO PROMINENT MEDIA COMPANIES ON THE BIG BOARD WERE UP SHARPLY SHARES OF WASHINGTON POST GAINED 20 3/4 OR 79 TO 282 1/4 AND CBS 4 5/8 TO 284 7/8 OFFICIALS AT WASHINGTON POST RESPONDING TO A BIG BOARD REQUEST TO EXPLAIN UNUSUAL ACTIVITY IN ITS STOCK SAID NO ANNOUNCEMENTS REGARDING COMPANY ACTIVITIES HAD BEEN MADE OR WERE PLANNED LIKEWISE THERE WAS NO NEWS TO EXPLAIN THE JUMP IN CBS GERRITY OIL & GAS SHED 1 1/2 TO 10 5/8 AFTER IT SAID IT IS NO LONGER SEEKING POTENTIAL BUYERS FOR THE COMPANY GERRITY SAID IT ADOPTED A BUSINESS PLAN UNDER WHICH IT WILL EXPAND INTO NEW MARKETS ON A SELECTED BASIS PS GROUP WAS OFF 1 3/4 OR 12 AT 13 LATE WEDNESDAY THE COMPANY SAID IT HAD DISCONTINUED TALKS WITH A GROUP CONTROLLED BY THE PRITZKER FAMILY REGARDING THE SALE OF PS GROUP'S TRAVEL MANAGEMENT UNIT SHARES OF GENSIA SLIPPED 2 TO 23 1/8 AFTER THE COMPANY LATE WEDNESDAY SAID IT WAS NOTIFIED BY REGULATORY AUTHORITIES THAT SUCCESSFUL RESULTS FROM ITS ONGOING STUDY WITH PROTARA USED IN CORONARY SURGERY WILL BE REQUIRED PRIOR TO POTENTIAL APPROVAL TO MARKET THE DRUG SHANGHAI PETROCHEMICAL DROPPED 3 1/8 TO 39 5/8 THE COMPANY SAID IT INCREASED ITS INVESTMENTS IN TWO ASSOCIATED COMPANIES INVOLVED IN TRADING AND INVESTMENTS AND FORMED A NEW COMPANY THAT WILL OWN GAS STATIONS AND TRADE IN PETROCHEMICAL PRODUCTS BRUNSWICK JUMPED 1 3/8 TO 20 ON HEAVY VOLUME ANALYSTS ATTRIBUTED THE ACTION IN PART TO INCREASING CONSUMER CONFIDENCE AND TO INTEREST SPURRED BY THE FORTHCOMING NEW YORK BOAT SHOW 9401070115 940107 HEARD ON THE STREET CUC INTERNATIONAL DRAWS RAVES ON WALL STREET ALTHOUGH SOME SKEPTICS SAY IT'S RIPE FOR A FALL BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL DIM THE LIGHTS PUT FRESH FLOWERS ON THE TABLE AND SUMMON THE STROLLING VIOLINIST WALL STREET JUST LOVES CUC INTERNATIONAL ACCORDING TO ZACKS INVESTMENT RESEARCH 10 OF THE 11 WALL STREET FIRMS THAT FOLLOW CUC RATE IT AS A BUY THE STOCK ROSE 41 IN 1992 AND 86 IN 1993 IT IS AMONG THE 10 MOST EXPENSIVE STOCKS ON THE NEW YORK STOCK EXCHANGE ACCORDING TO A RECENT TALLY BY KIDDER PEABODY SKEPTICS CONCEDE THAT CUC IS A GOOD COMPANY BUT THEY ARGUE THAT THE SHARES ARE DUE FOR A FALL IT'S TIME TO TAKE SOME MONEY OUT SAYS ANALYST JOHN B FRANCK AT PNC FINANCIAL IN PHILADELPHIA LONE BEAR AMONG THE 11 ANALYSTS WHY BE GREEDY AT YESTERDAY'S PRICE OF 34 1/2 DOWN 1 CUC SHARES SELL FOR A TOWERING 48 TIMES THE PAST FOUR QUARTERS' EARNINGS THAT'S THE KIND OF GIDDY MULTIPLE INVESTORS ATTACH TO COMPANIES WHEN WALL STREET VIEWS THEM THROUGH A ROMANTIC HAZE WALMART STORES HOME DEPOT AND US SURGICAL CARRIED SUCH MULTIPLES A YEAR OR TWO AGO THOSE STOCKS HAVE STUMBLED NOT BECAUSE THEY WERE BAD COMPANIES BUT BECAUSE REDHOT EARNINGS GROWTH IS HARD TO SUSTAIN CUC BASED IN STAMFORD CONN OPERATES VARIOUS DISCOUNTBUYING SERVICES CONSUMERS PAY AN ANNUAL FEE SUCH AS 50 A YEAR TO GET DISCOUNTS ON SHOPPING TRAVEL RESTAURANT DINING OR OTHER ITEMS THE DISCOUNT PROGRAMS ARE SOLD MAINLY THROUGH CREDITCARD ISSUERS SUCH AS BANKS WHICH OFTEN PUT THEIR OWN NAMES ON THEM THE STOCK'S SIZZLE STEMS FROM CUC'S PROSPECTS AS A FIRSTCLASS TRAVELER ON THE INFORMATION SUPERHIGHWAY INVESTORS SEE THE TELEVISION TELEPHONE AND COMPUTER BLENDING INTO ONE HIGHPOWERED DEVICE THEY FIGURE THE COMPANIES THAT CAN PROVIDE CONTENT FOR IT WILL THRIVE CUC IS ONE SUCH COMPANY IT ALREADY SELLS ITS SERVICES THROUGH SEVERAL COMPUTER NETWORKS SUCH AS COMPUSERVE AND AMERICA ONLINE AND IT HAS SIGNED AGREEMENTS TO PROVIDE CONTENT FOR INTERACTIVE TELEVISION PILOT PROGRAMS IN ORLANDO FLA WITH TIME WARNER AND CASTRO VALLEY CALIF WITH A JOINT VENTURE OF AMERICAN TELEPHONE & TELEGRAPH AND VIACOM THE WHOLE INTERACTIVEMEDIA AREA HAS TREMENDOUS POTENTIAL FOR THE 1990S SAYS RAY HIRSCH A MONEY MANAGER AT IDS IN MINNEAPOLIS WHICH OWNS THE STOCK HE CAUTIONS HOWEVER THAT IT'S IMPOSSIBLE TO TELL WHICH COMPANIES WILL BE THE WINNERS AND LOSERS OVER THE NEXT COUPLE OF YEARS SO INVESTORS WHO WANT TO CRUISE THE INFORMATION HIGHWAY SHOULD BUY A CARAVAN OF SEVERAL STOCKS CONSUMERS TODAY ARE VERY COSTCONSCIOUS AND CUC FITS RIGHT INTO THAT THEME FOR THE 1990S SAYS CHARLES W HOOPER OF FOUNDERS SPECIAL FUND IN DENVER MR HOOPER'S FUND OWNS 125000 CUC SHARES HE SOLD 75000 LAST FALL BECAUSE I THOUGHT IT WAS EXPENSIVE BUT PLANS TO HANG ON TO THE REST HE LIKES CUC'S EXPOSURE TO INTERACTIVE TELEVISION AND IS ENTHUSIASTIC ABOUT ITS PLANS TO EXPAND IN EUROPE NAOMI TALISH AN ANALYST AT MORGAN STANLEY IS A MAJOR PROPONENT OF THE STOCK CUC CONTINUES TO ADD NEW MEMBERS SHE SAYS IT ALREADY HAS SOME 28 MILLION ALTHOUGH PEOPLE ARE DOUBLECOUNTED IF THEY BELONG TO SAY A TRAVEL CLUB AND A DISCOUNTDINING SERVICE AND MS TALISH THINKS IT WILL ADD ABOUT 25 MILLION THIS YEAR AT THE SAME TIME SHE SAYS CUC HAS LOWERED THE COST OF ACQUIRING MEMBERS ALLOWING IT TO BOOK A SLIGHT PROFIT IN THE FIRST YEAR MS TALISH ESTIMATES THAT CUC WILL EARN 76 CENTS A SHARE IN THE CURRENT FISCAL YEAR THAT ENDS JAN 31 THEN 98 CENTS A SHARE NEXT YEAR AND 127 IN THE YEAR ENDING IN JANUARY 1996 MY FIVEYEAR PROJECTED GROWTH RATE IS 30 SHE SAYS I THINK THE GROWTH IS VERY PREDICTABLE AND THAT DOESN'T INCLUDE IMPACT FROM THE INTERACTIVE SIDE SHE THINKS THE SHARES COULD HIT 45 BY MID1995 BUT MR FRANCK OF PNC WONDERS WHETHER INVESTORS ARE WISE TO ASSUME THAT ANY COMPANY'S EARNINGS CAN GROW 30 A YEAR CONSISTENTLY IN INTERACTIVE COMMUNICATIONS HE SAYS A MYRIAD OF THINGS WILL COME INTO THE MARKETPLACE NOBODY KNOWS WHAT WILL CATCH ON TO LOOK AT CUC'S STOCK PRICE SAYS MR FRANCK YOU WOULD THINK THAT PEOPLE ARE GOING TO DO ALL THEIR SHOPPING BY PUNCHING BUTTONS AT HOME IF THIS IS REALLY THE WAVE OF THE FUTURE CAN YOU IMAGINE THE VACANT RETAIL SPACE ALL THE MALLS SHORT SELLERS INVESTORS WHO BET THAT A PARTICULAR STOCK WILL DECLINE HAVE LOST A LOT OF MONEY IN CUC ROBERT L RENCK HEAD OF A SMALL BROKERAGE AND MONEYMANAGEMENT FIRM SAYS HE URGED SHORT SALES A YEAR OR TWO AGO BUT ISN'T DOING SO NOW MY GRANDDADDY SAID NEVER STAND IN FRONT OF A FREIGHT TRAIN HE SAYS STILL MR RENCK SAYS HE WOULD RATHER SELL CUC SHARES THAN BUY THEM IT REMAINS TO BE SEEN WHETHER THEY HAVE A PROPRIETARY POSITION IN ELECTRONIC SHOPPING HE SAYS THE STOCK'S VALUATION IS EXCESSIVE IT'S ALWAYS BEEN HIGH BUT NOW IT'S EXTREMELY HIGH 9401070114 940107 QUARTERLY MUTUAL FUNDS REVIEW RISKS HAVE THEIR REWARDS AS AREAS FRAUGHT WITH DANGER POST GAINS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RISKY BETS NABBED THE NO 1 SPOTS IN THE LATEST MUTUALFUND PERFORMANCE WARS LEADING THE PACK FOR THE QUARTER YEAR AND LONGER PERIODS WERE FOUR AREAS FRAUGHT WITH TREACHERY GOLD BIOTECHNOLOGY SMALL COMPANIES AND SOUTHEAST ASIAN STOCKS THESE FUNDS LOOK GREAT NOW IN THE PERFORMANCE CHARTS BUT MANY HAVE HAD WILD UPS AND DOWNS IN THE PAST AND PROBABLY WILL HAVE MORE THE BESTPERFORMING FUND FOR THE YEAR LEXINGTON STRATEGIC INVESTMENTS PUTS ITS MONEY IN SMALLER SOUTH AFRICAN MINING COMPANIES THE RISE IN GOLD PRICES CATAPULTED THE FUND OUT OF ITS POSITION AS ONE OF THE WORSTPERFORMING FUNDS FOR THE PAST 10 YEARS FIDELITY SELECT BIOTECHNOLOGY PORTFOLIO RACKED UP THE BEST FIVEYEAR PERFORMANCE DESPITE SOME MAJOR CORPORATE DISASTERS IN THE INDUSTRY IN THE PAST TWO YEARS IN THE FOURTH QUARTER THE BEST PERFORMER WAS MORGAN STANLEY INSTITUTIONAL FUNDASIAN EQUITY PORTFOLIO WHICH IS HEAVILY INVESTED IN MALAYSIA THAILAND AND HONG KONG TWENTIETH CENTURY GIFTRUST INVESTORS IS CELEBRATING ITS RECENT 10YEAR ANNIVERSARY BY BEING THE LEADING FUND IN THAT TIME PERIOD THE FUND INVESTS IN SMALL COMPANIES THAT ARE GROWING QUICKLY WE ARE BUYING HOT ACCELERATING COMPANIES WITH GREAT EARNINGS GROWTH SAYS JAMES E STOWERS III WHO HEADS THE TEAM THAT MANAGES THE KANSAS CITY MOBASED GIFTRUST FUND LAUNCHED IN NOVEMBER 1983 THE FUND FAVORS SHARES OF SMALL YOUNG COMPANIES THAT HAVE EXCITING PROSPECTS THE 50 OR SO STOCKS IN THE FUND HAVE AN AVERAGE MARKET VALUE OF 250 MILLION AND THE FUND'S SMALL SIZE 164 MILLION IN TOTAL ASSETS PERFECTLY SUITS THIS STYLE OF INVESTING ANALYSTS SAY THE HOT MARKET FOR INITIAL PUBLIC OFFERINGS IN 1993 PROVIDED A SLEW OF ADDITIONAL SMALL STOCKS WITH FASTGROWTH PROSPECTS THE IPOS AND OTHER STOCK OFFERINGS HELPED TO GIVE AN EXTRA BOOST TO THE FUND WHICH HAD A TOTAL RETURN PRICE CHANGE PLUS DIVIDENDS OF 314 IN 1993 THE FUND IS SMALL ENOUGH THAT WE ARE ABLE TO BUY INTO THOSE DEALS THAT GIVE SOME PERK TO THE FUND MR STOWERS SAYS AMONG THE HOT IPOS BOUGHT BY THE FUND ARE MICROCHIP TECHNOLOGY INC AND GENERAL NUTRITION INC WHEN INVESTING IN SUCH SMALL STOCKS MR STOWERS SAYS IT'S IMPORTANT TO BE ABLE TO REACT QUICKLY THE FUND HAS A RELATIVELY HIGH ANNUAL AVERAGE TURNOVER RATE OF 140 IN THE PAST FIVE YEARS WE DON'T TURN OVER THE WHOLE FUND EVERY YEAR BUT WE HAVE TO MOVE QUICKLY HE SAYS IN THE SMALLCAP AREA YOU OFTEN SEE A SHOOTING STAR THAT FLAMES OUT REALLY FAST IF WE SEE THAT HAPPENING WE'RE HEADED FOR THE DOOR VERY QUICKLY AS OF OCT 31 THE FUND WAS WEIGHTED 11 IN COMPUTER SOFTWARE 8 IN COMMUNICATIONS SERVICES 12 IN SEMICONDUCTOR AND RELATED ELECTRONIC COMPONENTS AND 11 IN RETAIL STOCKS MR STOWERS SAYS THERE ARE FIVE PORTFOLIO MANAGERS PICKING STOCKS FOR THE FUND BY TRACKING SOME 10000 TO 12000 COMPANIES EVERY QUARTER THE STOCKPICKERS ARE LOOKING FOR COMPANIES WITH TOP AND BOTTOMLINE THAT MEANS REVENUE AND EARNINGS GROWTH HE SAYS THEY DON'T WANT TO OWN COMPANIES THAT ARE JUST INCREASING EARNINGS BY CUTTING EXPENSES WE'RE CAREFUL NOT TO OWN THE KIND OF NAMES THAT GET GLORIFIED OR HAVE THE FEELING OF WALKING ON WATER HE SAYS BUT THIS FUND IS NOT FOR THE GREEDY INDIVIDUALS CAN'T INVEST IN THE GIFTRUST PORTFOLIO FOR THEMSELVES SHARES OF THE FUND MUST BE GIVEN AS A GIFT TO ANOTHER INDIVIDUAL OR ORGANIZATION AND MUST BE HELD EITHER FOR A 10YEAR PERIOD OR FOR THE TIME IT TAKES A MINOR TO REACH ADULTHOOD THESE RESTRICTIONS HELP TO KEEP THE FUND SMALL AND AGILE IT'S A NOLOAD FUND WITH AN ANNUAL MANAGEMENT FEE OF 1 FIDELITY SELECT BIOTECHNOLOGY PORTFOLIO MANAGED TO BE THE BEST PERFORMER FOR THE PAST FIVE YEARS EVEN THOUGH MANY OF THE STOCKS IT OWNS ARE UNLOVED TODAY THE FUND IN 1993 HAD ONLY A GAIN OF 07 THAT FOLLOWED A 1992 LOSS OF 1038 ONLY AFTER 1991'S LEAP OF 9951 GETS FACTORED INTO THE FIVEYEAR PERFORMANCE DOES THE FUND RISE TO THE TOP DURING THAT PERIOD WOW I CAN'T BELIEVE WE'RE ON THE LIST SAYS KAREN FIRESTONE THE PORTFOLIO MANAGER THE GROUP WAS ABYSMAL IN 1992 AND IT STARTED OUT REALLY BAD IN 1993 THE STOCKS SHOWED SIGNS OF LIFE LATE IN THE YEAR BUT THE BIOTECHNOLOGY GROUP OF THE DOW JONES EQUITY MARKET INDEX WOUND UP DOWN 752 IN 1993 IN THE FIRST QUARTER OF 1993 BIOTECHNOLOGY STOCKS HIT BOTTOM AND DIDN'T START TO LOOK BETTER UNTIL THE SECOND HALF AND MUCH OF THE GAINS HAVE COME IN ONLY A FEW INDIVIDUAL STOCKS MS FIRESTONE SAYS ONE OF THE FUND'S BIGGEST HOLDINGS CHIRON CORP AT 84 IS TRADING AT MORE THAN DOUBLE ITS 52WEEK LOW OF 40 THE STOCK HAS BEEN RISING ON THE BELIEF THAT EARNINGS WILL BENEFIT FROM SALES OF BETASERON ITS NEW DRUG FOR MULTIPLE SCLEROSIS ANOTHER BIG HOLDING GENENTECH INC AT 4925 IS UP MORE THAN 57 FROM ITS 52WEEK LOW GENENTECH HAS AN IMPRESSIVE PIPELINE OF NEW PRODUCTS THE BACKING OF GIANT ROCHE HOLDING OF SWITZERLAND AND THE POSSIBILITY OF A TAKEOVER BY ROCHE THE FOOD AND DRUG ADMINISTRATION RECENTLY APPROVED GENENTECH'S DNASE TREATMENT FOR CYSTIC FIBROSIS TO BE MARKETED UNDER THE BRAND NAME PULMOZYME OWNING SOME STOCKS WITH GIANT GAINS IS ONLY PART OF THE STORY THE FUND WAS HELPED GREATLY BY NOT OWNING SEVERAL STOCKS THAT DIVED THE FUND DIDN'T OWN MEDIMMUNE INC WHICH IS NOW TRADING AT 12 LESS THAN HALF OF ITS 52WEEK HIGH OF 32625 WE CAN SAY WE DODGED SOME DISASTERS BUT THE FUND ISN'T UP 20 SHE SAYS NOT EVERY BUST WAS AVOIDED IF I COULD DO SOMETHING OVER AGAIN IN 1993 IT WOULD BE SYNERGEN MS FIRESTONE SAYS THE DATA WERE SO ENCOURAGING I WAS SEDUCED INTO BELIEVING IN ONE DAY SYNERGEN INC PLUNGED 68 WHEN IT ANNOUNCED DISAPPOINTING RESULTS OF ITS DRUG ANTRIL FOR SEPSIS A BLOOD INFECTION THE STOCK CLOSED AT 1325 YESTERDAY COMPARED WITH A YEARLY HIGH IN THE MID60S MS FIRESTONE BELIEVES THE GROUP WILL START DRAWING A LOT OF ATTENTION IN 1994 AS MANY MORE PRODUCTS GO THROUGH LATESTAGE CLINICAL TRIALS AND START SHOWING STRONG RESULTS ASCENDING TO BEST FROM WORST LEXINGTON STRATEGIC INVESTMENTS POSTED A GAIN OF 26978 FOR 1993 JUST 12 MONTHS AGO THE FUND WAS LISTED AS THE WORSTPERFORMING FUND OF 1992 WITH A LOSS OF 6071 YOU WIN SOME YOU LOSE SOME SAYS CAESAR BRYAN WHO BEGAN MANAGING THE FUND AT THE BEGINNING OF 1992 IT WAS JUST HORRIBLE IN 1992 IT'S WHAT HAPPENS TOMORROW THAT COUNTS MR BRYAN IS STICKING WITH GOLD WHEN HE TOOK CHARGE HE DECIDED TO CONCENTRATE THE FUND'S HOLDINGS WHICH NOW COMPRISE 26 STOCKS IN SMALL SOUTH AFRICAN GOLDMINING COMPANIES IN 1993 MANY OF THOSE COMPANIES MANAGED TO BOUNCE BACK FROM TOUGH TIMES AND THEIR STOCK PRICES SOARED GOLD PRICES GOT AS HIGH AS AROUND 415 AN OUNCE DURING THE SUMMER AFTER STARTING THE YEAR AT 330 AN OUNCE GOLD PRICES ARE NOW AROUND 390 MR BRYAN BELIEVES THE BULL MARKET FOR GOLD STILL HAS A WAYS TO GO GOLD HAS BEEN IN A BEAR MARKET FOR THE LAST 13 YEARS AND IT IS JUST OFF THE BOTTOM HE SAYS THERE IS CONTINUED STRONG DEMAND FOR GOLD FROM THE FAR EAST AND SOUTHEAST ASIA SAYS MR BRYAN SOME INVESTORS ARE BUYING GOLD AS A HEDGE AGAINST THE CHANCE OF INCREASING INFLATION IN THEIR GROWING ECONOMIES GOLD IS A LITTLE LIKE CARS OR MINK COATS HE ADDS WHERE WEALTH IS BEING CREATED THERE IS A GREATER DEMAND FOR GOLD ONE OF THE BIGGEST SUCCESS STORIES IN THE FUND IS WESTERN AREAS GOLD MINING NOW TRADING AROUND 850 MORE THAN 11 TIMES ABOVE THE BEGINNING OF 1993 SOME OF THE FUND'S OTHER BIG WINNING POSITIONS ARE KINROSS MINES AND RANDFONTEIN ESTATES GOLD MINING AN EASING OF THE SOUTH AFRICAN POLITICAL SITUATION ALSO HELPED TO BOOST THE FUND A YEAR AGO MR BRYAN TOOK A TRIP TO SOUTH AFRICA TO MAKE THE DECISION TO STAY IN THESE STOCKS MANY OF WHICH NEED TO CUT COSTS AND FIND NEW ORE AFTER WAITING OUT THE WORST MR BRYAN SAYS HE IS STAYING WHERE I AM RIGHT NOW IN GOLD STOCKS THE FUND IS SLATED AS A NATURAL RESOURCES FUND AND COULD MOVE INTO OTHER AREAS SUCH AS BASE METALS SOMETHING HE IS STARTING TO STUDY LEXINGTON MANAGEMENT CORP TOOK OVER THE MANAGEMENT OF LEXINGTON STRATEGIC INVESTMENTS IN 1992 THE FUND CARRIES A CHARGE OR LOAD OF AS MUCH AS 575 THE FUND'S OPERATING EXPENSES WERE A HIGH 408 OF THE FUND'S ASSETS AT THE END OF 1992 WHEN THE FUND HELD 86 MILLION BUT EXPENSES AS A PERCENTAGE OF ASSETS SHOULD DECLINE WITH THE RAPID GROWTH OF THE FUND SINCE THEN WHICH HAS JUMPED TO 81 MILLION MORGAN STANLEY INSTITUTIONAL FUNDASIAN EQUITY PORTFOLIO HAS HAD A DAZZLING PERFORMANCE SINCE ITS INCEPTION THREE YEARS AGO THE SINGAPOREBASED FUND HAD A FOURTHQUARTER GAIN OF 4956 A SHINING ENDING TO A YEAR THAT BROUGHT A 1057 LEAP THIS ISN'T A FUND FOR EVERYONE IT'S ONLY FOR WEALTHY INVESTORS WHO CAN PUT UP THE 500000 MINIMUM INITIAL PURCHASE THE FUND INVESTS HEAVILY IN HONG KONG MALAYSIA SINGAPORE AND THAILAND IT ALSO HAS STOCKS FROM CHINA INDONESIA THE PHILIPPINES AND TAIWAN EAN WAH CHIN PORTFOLIO MANAGER SAYS THE ASIAN MARKETS SHOULD DO REASONABLY WELL IN THIS YEAR'S FIRST HALF BUT NOT AS SPECTACULARLY AS THEY HAVE BEEN THESE MARKETS HAVE GOTTEN VERY SPECULATIVE THERE'S NO ARGUMENT ABOUT IT SHE SAYS NOW SMALL LOCAL INVESTORS ARE STARTING TO SNATCH UP SHARES SHE SAYS ASIANS ARE STARTING TO BENEFIT FROM THE REGION'S GROWING ECONOMIES AND HAVE SOME MONEY TO INVEST LOCAL GOVERNMENTS ARE PROMOTING THE USE OF THE STOCK MARKET THESE FACTORS ADDED TO THE MONEY POURING INTO THE MARKETS FROM THE US AND JAPAN ARE PUSHING STOCK PRICES EVEN HIGHER THE FUND HAS ONLY ABOUT 283 MILLION IN TOTAL ASSETS WHICH IS SPREAD OUT AMONG 160 STOCKS THE PORTFOLIO MANAGER SAYS THE FUND HOLDS ONLY A SMALL PORTION OF EACH COMPANY BECAUSE SUCH STOCKS CAN BE DIFFICULT TO TRADE SOME OF THE LARGER HOLDINGS INCLUDE HUTCHISON WHAMPOA A HONG KONG CONGLOMERATE IN THE TRANSPORTATION AND TELECOMMUNICATIONS INDUSTRIES AND BANGKOK BANK IN THAILAND THE STOCKPICKING TEAM'S MEMBERS ARE ALL FROM THE AREA WHERE THE FUND CHOOSES ITS STOCKS WE OPERATE FROM ASIA OUR WHOLE LIFE IS ASIA OUR FUTURE IS ASIA THE FUND MANAGER SAYS WE KNOW HOW TO GET THE RIGHT COMPANY BOOKS NOT THE ONES THEY SHOW THE TAX COLLECTORS 9401070113 940107 LETTERS TO THE EDITOR DON'T BE FLIPPANT ABOUT OUR CAREERS YOUR OTHERWISE EXCELLENT DEC 16 PAGEONE EXPOSE ON FEDERAL JOBS PROGRAMS RECYCLED AN ELITIST CLICHE ABOUT JOBS IN THE FASTFOOD INDUSTRY WHY SHOULD OUR JOBS BE PASSED OFF AS MERELY FLIPPING HAMBURGERS WHEN IN REALITY OURS IS AN INDUSTRY FILLED WITH OPPORTUNITY FOR HARD WORKERS HOW ELSE CAN YOU EXPLAIN THE HUNDREDS OF THOUSANDS OF SUPERVISORS MANAGERS AND ASSISTANT MANAGERS EARNING SOLID SALARIES IN AN INDUSTRY THAT BOASTS 250000 CHAIN RESTAURANT OUTLETS MOST OF THESE DETERMINED MEN AND WOMEN GOT THEIR START PREPARING FOOD LEARNING TEAMWORK AND ALL THE OTHER CHALLENGING SKILLS THAT ENABLE CHAIN RESTAURANTS TO SERVE MILLIONS OF CUSTOMERS DAILY FLIPPING HAMBURGERS DOESN'T ACCURATELY DESCRIBE OUR BUSINESS ANY MORE THAN FLIPPING NEWSPAPERS ONTO DOORSTEPS DESCRIBES JOBS IN JOURNALISM 9401070112 940107 THE AMERICAS THE US SHOULD PUNISH FIDEL BY GRANTING HIS WISH BY DAVID ASMAN AFTER FIVE MONTHS OF PHONE CALLS LETTER WRITING AND SCHMOOZING AT EMBASSY RECEPTIONS I FINALLY GOT THE CALL MY CUBAN VISA HAD ARRIVED FROM HAVANA HOWEVER LESS THAN 24 HOURS BEFORE I WAS TO LEAVE I WAS TOLD THE VISA HAD BEEN REVOKED DUE TO INCORRECT POLITICAL STATEMENTS MADE BY ME AT A COUNCIL ON FOREIGN RELATIONS MEETING SEVERAL DAYS BEFORE THE STORY OF MY FAILED ATTEMPTS TO GET INTO CUBA REVEALS MORE THAN THE EXTRAORDINARY DIFFICULTIES INVOLVED IN DEALING WITH THE FICKLE CUBAN BUREAUCRACY IT SUGGESTS THAT THE US ECONOMIC EMBARGO OF CUBA IS NOT THE OVERRIDING CONCERN OF THE CUBAN LEADERSHIP AT THE MOMENT AS THE READERS OF THESE PAGES ARE LIKELY AWARE THE JOURNAL EDITORIAL POLICY HAS HARDLY BEEN SYMPATHETIC TO FIDEL CASTRO'S CALLS FOR LIFTING THE EMBARGO IN FACT THE EMBARGO SEEMED JUSTIFIABLE AS LONG AS MR CASTRO ACTED AS THE FUNDING MECHANISM FOR POLITICAL SUBVERSION AROUND THE WORLD AND AS LONG AS THE CUBAN ECONOMY WAS CLEARLY UNDER HIS CONTROL HOWEVER LAST YEAR THERE OCCURRED IN CUBA SOME REMARKABLE ECONOMIC TRANSFORMATIONS THAT HAVE FORCED MANY TO RETHINK THE EMBARGO WHEN CUBA LOST ITS AID FROM THE OLD SOVIET BLOC THE CUBAN ECONOMY WENT INTO A NOSEDIVE THIS WAS NOT UNEXPECTED SINCE THE SOVIETS AND THEIR SATELLITES WERE SUBSIDIZING APPROXIMATELY 25 OF CUBA'S GROSS NATIONAL PRODUCT AND PROVIDING ALMOST ALL OF CUBA'S HARDCURRENCY EARNINGS THROUGH FAVORABLE TRADE DEALINGS THE INABILITY OF THE CUBAN ECONOMIC MODEL SUCH AS IT WAS TO SUSTAIN ITSELF WAS CLEAR TO ANY ANALYST EXCEPT FIDEL AND THE SYCOPHANTS WITH WHOM HE SURROUNDS HIMSELF BUT DESPERATE SITUATIONS CALL FOR DESPERATE MEASURES AND LAST SUMMER THE CLOSED DOOR OF THE CUBAN ECONOMY BEGAN TO CRACK OPEN THE FIRST AND MOST DRAMATIC MEASURE WAS THE DECISION LAST JULY TO ALLOW MOST CUBAN CITIZENS TO HOLD AND TRADE US DOLLARS THE SIGNIFICANCE OF ALLOWING CUBANS TO LEGALLY TRADE IN DOLLARS IS THAT THE CUBAN GOVERNMENT IS NO LONGER THE SOLE EMPLOYER OR INSTIGATOR OF ECONOMIC ACTIVITY CUBANS WHO GET DOLLARS FROM TIPS RELATIVES ABROAD OR BARTER CAN NOW PAY OTHER CUBANS FOR GOODS AND SERVICES IN A CURRENCY OUTSIDE THE GOVERNMENT'S CONTROL WHILE MUCH OF THIS ECONOMIC ACTIVITY IS STILL UNDERGROUND THE DOLLAR PROFITS ACCRUED CAN BE OPENLY SPENT AND EVEN PLACED IN DOLLAR SAVINGS ACCOUNTS AT ABOUT THE SAME TIME THE DOLLAR WAS LEGALIZED MORE THAN 100 PRIVATE OCCUPATIONS WERE LEGALIZED INCLUDING SHOEMAKERS TAXI DRIVERS REPAIRMEN AND CERTAIN FARMERS MANY OF THE RESTRICTIONS PLACED ON THE CUBAN BUSINESS SECTOR REMAIN ONEROUS UNIVERSITY GRADUATES ARE PROHIBITED FROM OPERATING BUSINESSES THE GOVERNMENT RESERVES THE RIGHT TO SUSPEND ANY BUSINESS ARBITRARILY ETC AND CUBAN CITIZENS ARE STILL DENIED MANY ECONOMIC RIGHTS OF OWNERSHIP NOW ENJOYED BY FOREIGNERS HOWEVER DESPITE THE RESTRICTIONS THE LEGENDARY CUBAN ENTREPRENEURIAL SPIRIT HAS KICKED IN AND SPREAD LIKE WILDFIRE ACCORDING TO HARVARDBASED CUBAN EXPERT JORGE DOMINGUEZ BY THE END OF THE YEAR ENTREPRENEURS WERE REGISTERING NEW BUSINESSES AT THE ASTOUNDING RATE OF 800 A DAY AND THAT COUNT MERELY RECORDS THOSE WHO BOTHERED TO REGISTER PERHAPS NOTHING BETTER SHOWS THE POWER OF CUBA'S ENTREPRENEURS THAN THE VEHEMENCE WITH WHICH COMMUNIST HARDLINERS ARE FIGHTING AGAINST THEM LAST WEEK COMMUNIST LEGISLATORS SUCCEEDED IN OUTLAWING SEVERAL ENTERPRISES RECENTLY LEGALIZED IN THE PAST WHEN CASTRO FELT THAT MARKET FORCES WERE GETTING OUT OF CONTROL HE RELIED ON THE UNSWERVING SUPPORT OF HIS INTERNAL SECURITY APPARATUS TO CLOSE DOWN ENTERPRISES SOVIET FUNDS WERE ALSO AVAILABLE TO BLUNT THE EFFECTS BUT SUPPORT FROM THE MILITARY FOR SUCH A CRACKDOWN IS NO LONGER A GIVEN AND OF COURSE THERE IS NO LONGER ANY SOVIET CASH TO MAKE UP FOR LOST MARKETS THIS TIME IT'S UNLIKELY THAT CASTRO CAN PREVENT THE SPREAD OF THE MARKET FORCES THAT HAVE BEEN UNLEASHED IN LIGHT OF ALL THESE CHANGES JOURNAL EDITORIALISTS BEGAN TO FEEL THAT IF INDIVIDUAL CUBANS HAD THE OPPORTUNITY TO RECEIVE FINANCING FROM ABROAD AND TO TRADE WITH THE US A CRITICAL MASS MIGHT DEVELOP THAT WOULD HASTEN THE TRANSITION TO A MORE OPEN ECONOMIC AND POLITICAL SYSTEM UNDER CURRENT CONDITIONS IT BEGAN TO LOOK LIKE THE ECONOMIC EMBARGO HAD OUTLIVED ITS USEFULNESS I MADE MY FEELINGS ABOUT THE EMBARGO KNOWN TO CUBAN REPRESENTATIVES IN THE US AND THEY APPEARED TO BE ENTHUSIASTIC ABOUT MY VISIT UNTIL I SPOKE AT THE COUNCIL ON FOREIGN RELATIONS A CUBAN REPRESENTATIVE TO THE UNITED NATIONS WAS AT THE COUNCIL MEETING AND DUTIFULLY REPORTED MY REMARKS BACK TO HAVANA WHEREUPON MY VISA WAS REVOKED WHILE I NOTED IN MY TALK THE DESPERATE ECONOMIC CIRCUMSTANCES ON THE ISLAND I SAID NOTHING NOT ALREADY WRITTEN IN DETAIL ON MY VISA APPLICATIONS SINCE THE MEETING WAS SUPPOSED TO BE OFFTHERECORD COUNCIL REPRESENTATIVES THREATENED TO BAR CUBANS FROM FUTURE MEETINGS IF MY VISA WAS NOT REISSUED BUT DESPITE THE RISK OF LOSING THE INFORMAL CONTACTS MADE AT THE COUNCIL WITH US DIPLOMATS AND BUSINESS INTERESTS THE CUBANS WERE UNMOVED MORE RECENTLY SEVERAL OTHER JOURNALISTS AND SCHOLARS WHO FAVORED A NEW LOOK AT THE ECONOMIC EMBARGO HAD THEIR VISA REQUESTS EITHER DENIED OR REVOKED IF FIDEL REALLY OPPOSES THE EMBARGO WHY IS HE NOW PREVENTING THE VISITS OF THOSE WHO FAVOR LIFTING IT PARTICULARLY OF THOSE WHO FORMERLY SUPPORTED IT COULD IT BE BECAUSE THE EMBARGO REMAINS THE ONLY EXCUSE HE HAS TO DEFLECT ATTENTION FROM HIS GOVERNMENT'S FAILURE TO END THE ECONOMIC CRISIS WHILE ENDING THE ECONOMIC EMBARGO OF CUBA MAY INDEED ACCELERATE THE MOMENT OF RECKONING FOR THE CUBAN LEADERSHIP THERE ARE MEASURES SHORT OF SUCH A DRAMATIC UNILATERAL ACTION THAT THE CLINTON ADMINISTRATION COULD TAKE TO AFFECT CHANGE IN CUBA PRESIDENT CLINTON SHOULD THROW DOWN THE GAUNTLET AND OFFER TO LIFT THE EMBARGO WITH JUST ONE ECONOMIC CONDITION GRANT THE CUBAN PEOPLE THE SAME ECONOMIC RIGHTS THE CUBAN GOVERNMENT NOW AFFORDS FOREIGNERS NAMELY THE RIGHT TO PRIVATE PROPERTY AND THE PROPER EXECUTION OF CONTRACT RIGHTS AND REASONABLE RETURNS ON INVESTMENT THEN INDIVIDUAL CUBANS COULD TRADE DIRECTLY WITH THE US WITH A MINIMUM OF INTERFERENCE OR CONTACT WITH THE CUBAN GOVERNMENT AS FOR POLITICAL RECOGNITION AND THE OPENING OF INTERNATIONAL PIGGY BANKS FOR DEVELOPMENT LET SUCH POLITICAL REWARDS ACCRUE ONLY AS THE POLITICAL REALITIES CHANGE ON THE ISLAND PERHAPS IN PREPARATION FOR JUST SUCH A CHALLENGE THE CUBAN FOREIGN MINISTER RECENTLY SAID THAT THE GOVERNMENT WILL ACCEPT ONLY UNCONDITIONAL WITHDRAWAL OF THE EMBARGO BUT FOR HOW LONG COULD THE CUBAN LEADERSHIP INSIST THAT GRANTING CUBANS THE SAME RIGHTS ENJOYED BY FOREIGNERS WAS MORE EVIL THAN THE SUFFERING CAUSED BY A SUFFOCATING ECONOMIC EMBARGO MR ASMAN EDITS THE AMERICAS COLUMN 9401070111 940107 PRUDENTIAL LOSES ROUND OVER CLAIMS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS WHO BOUGHT LIMITED PARTNERSHIPS MORE THAN SIX YEARS AGO CAN STILL PURSUE A PRIVATE ARBITRATION CLAIM AGAINST PRUDENTIAL SECURITIES INC A STATE JUDGE RULED IN A TERSE RULING MASSACHUSETTS SUPERIOR COURT JUDGE REGINA QUINLAN DENIED PRUDENTIAL'S BID TO BAR THE INVESTORS FROM FILING AN ARBITRATION CLAIM AGAINST THE FIRM PRUDENTIAL HAD ARGUED THAT THE CASE SHOULD BE THROWN OUT BECAUSE THE INVESTORS HAD FILED THE CLAIM MORE THAN SIX YEARS AFTER BUYING THE PARTNERSHIPS IN VIOLATION OF ARBITRATION RULES THE DECISION HAS BROAD SIGNIFICANCE FOR INVESTORS OF THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT CURRENTLY PRUDENTIAL IS MAILING OUT CLAIM FORMS TO 340000 INVESTORS WHO MUST DECIDE WHETHER TO TAP INTO A 330 MILLION RESTITUTION FUND SET UP BY THE FIRM AS PART OF AN OCTOBER SETTLEMENT WITH REGULATORS OR FILE PRIVATE LEGAL CLAIMS AGAINST THE FIRM MANY INVESTORS BELIEVE THAT IF THEY BOUGHT PARTNERSHIPS MORE THAN SIX YEARS AGO THEIR ONLY SHOT AT RECOVERING MONEY WAS THROUGH THE RESTITUTION FUND THAT'S BECAUSE THE REGULATORY SETTLEMENT ISN'T GOVERNED BY THE STATUTE OF LIMITATIONS THAT NOW APPARENTLY BARS MANY INVESTORS FROM PURSUING OLDER LEGAL CLAIMS UNDER THE REGULATORY ACCORD HOWEVER INVESTORS CAN RECOVER ONLY COMPENSATORY DAMAGES THAT COVER LOSSES NOT PUNITIVE DAMAGES OR ATTORNEYS' FEES THE MASSACHUSETTS CASE DOESN'T HAVE BROAD PRECEDENTIAL VALUE SECURITIES LAWYERS SAY AND IT'S BY NO MEANS THE FIRST RULING OF ITS KIND BUT THE DECISION SHOWS THAT INVESTORS AREN'T NECESSARILY LOCKED INTO THE REPARATIONS FUND TO PURSUE OLDER CLAIMS AGAINST PRUDENTIAL PARTICULARLY IF THEY CAN PROVE THERE WAS NO WAY THEY COULD HAVE DISCOVERED ALLEGED FRAUD UNTIL LONG AFTER THEY BOUGHT THE PARTNERSHIPS LAWYERS SAY PRUDENTIAL WON'T APPEAL THE RULING WHICH NOW GOES TO AN ARBITRATION PANEL THIS RULING DOESN'T PREVENT US FROM ARGUING THE TIME LIMIT IN ARBITRATION SAID JOHN MURRAY PRUDENTIAL'S DIRECTOR OF CORPORATERISK MANAGEMENT THE ARBITRATION PANEL WILL MAKE ITS OWN DECISION A PRUDENTIAL SECURITIES SPOKESMAN ADDED THIS ISN'T EARTHSHATTERING IT HAS HAPPENED BEFORE OVER THE YEARS IN THE MASSACHUSETTS CASE FILED LAST YEAR TWO INVESTORS ACCUSED PRUDENTIAL AND A BROKER OF FRAUD AND UNAUTHORIZED TRADING AMONG OTHER THINGS IN SIX PARTNERSHIPS ALL BOUGHT BETWEEN 1985 AND 1987 BUT PRUDENTIAL TRIED TO BLOCK THE CASE FROM PROCEEDING TO ARBITRATION BEFORE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS CITING THE SIXYEAR TIME LIMIT FOR FILING CLAIMS PRUDENTIAL CITED AN NASD RULE THAT SAYS IN PART THAT NO DISPUTE CLAIM OR CONTROVERSY SHALL BE ELIGIBLE FOR SUBMISSION TO ARBITRATION UNDER THIS CODE WHERE SIX YEARS HAVE ELAPSED FROM THE OCCURRENCE OR EVENT GIVING RISE TO THE ACT OR DISPUTE CLAIM OR CONTROVERSY BUT THE PLAINTIFFS' LAWYERS ARGUED THAT THE CASE WAS FILED ONLY AFTER THE INVESTORS DISCOVERED PROBLEMS WITH THE PARTNERSHIPS THE CLAIMS CLEARLY DIDN'T ARISE WHEN THE INVESTMENTS WERE MADE BUT RATHER WHEN THE INVESTMENTS LOST THEIR VALUE AND THE DEFENDANTS FAILED TO ADVISE THEM THE INVESTORS OF SUCH A LOSS ACCORDING TO PAPERS FILED BY MICHAEL SOBOL AND HARRY MILLER OF SHAFNER & GILLERAN A BOSTON LAW FIRM MANY PRUDENTIAL PARTNERSHIP INVESTORS DIDN'T REALIZE THEIR INVESTMENTS HAD SOURED FOR SEVERAL YEARS THAT'S BECAUSE PRUDENTIAL ALONG WITH MANY OTHER WALL STREET BROKERAGE FIRMS FOR MANY YEARS LISTED INVESTORS' PARTNERSHIP INVESTMENTS AT COST ON MONTHLY BROKERAGEACCOUNT STATEMENTS IN DECEMBER 1991 PRUDENTIAL ADDED A DISCLAIMER THAT THE PARTNERSHIP AMOUNTS ON THE STATEMENTS WERE FACE VALUE ONLY BUT IT STILL DIDN'T DISCLOSE WHAT IN MANY CASES WERE SIGNIFICANT LOSSES THE PROBLEM WAS FURTHER COMPLICATED BECAUSE MANY PARTNERSHIPS WERE HIGHLY ILLIQUID THAT IS THEY COULDN'T EASILY BE RESOLD IN THE SECONDARY MARKETPLACE AS RECENTLY AS JUNE 1993 THE INVESTORS RECEIVED MONTHLY ACCOUNT STATEMENTS WHICH CARRIED THE LIMITED PARTNERSHIPS AT THEIR COST/BASIS ACCORDING TO PAPERS FILED IN THE CASE THIS METHOD OF ACCOUNTING FRAUDULENTLY CONCEALED THE ACTUAL VALUE OF THE LIMITED PARTNERSHIPS INVESTORS WHOSE ACCOUNT STATEMENTS DIDN'T PROPERLY SHOW THE DROP IN PARTNERSHIP VALUES STAND A BETTER CHANCE OF PROVING THAT THEY WEREN'T AWARE OF FRAUD UNTIL LONG AFTER THEY BOUGHT THE INVESTMENT SECURITIES LAWYERS SAY CERTAINLY IF YOU PAID 10000 AND PICKED UP YOUR STATEMENT EVERY MONTH AND IT SHOWED 10000 VALUE THAT COULD HAVE HAD THE EFFECT OF GIVING YOU COMFORT THAT THINGS WERE STILL OK SAYS SAM SCOTT MILLER A NEW YORK SECURITIES LAWYER AND FORMER GENERAL COUNSEL FOR PAINEWEBBER GROUP INC 9401070110 940107 REVIEW & OUTLOOK EDITORIAL ASIDES THREE STRIKES TWICE THIS WEEK THE GOVERNORS OF OUR TWO LARGEST STATES FOCUSED ON CRIMINAL CONTROL IN THEIR ANNUAL STATE MESSAGES PETE WILSON OF CALIFORNIA AND MARIO CUOMO OF NEW YORK BOTH ENDORSED A VERSION OF WASHINGTON STATE'S THREE STRIKES YOU'RE OUT LAW GOVERNOR CUOMO SAID IT'S TIME FELONS WERE TAUGHT A SIMPLE LESSON THREE VIOLENT CRIMES AND YOU'RE IN FOR LIFE WITHOUT PAROLE WHEN AN IDEA IS ENDORSED ON THE SAME DAY BY TWO GOVERNORS OF MEGASTATES ONE DEMOCRAT AND ONE REPUBLICAN IT'S SAFE TO CONCLUDE THE IDEA HAS NOW MOVED TO THE CENTER OF THE NATION'S POLITICAL RADAR SCREEN 9401070109 940107 QUARTERLY MUTUAL FUNDS REVIEW PENDULUM SAYS GROWTH STOCKS AREN'T THE PITS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE GOOD GUYS ALWAYS WIN IN THE END THAT'S THE BETTING OF SOME MUTUALFUND ANALYSTS WHO ARE RECOMMENDING FUNDS THAT SPECIALIZE IN THE HIGHQUALITY GROWTH STOCKS THAT HAVE BECOME SO DESPISED IN THE PAST TWO YEARS HIGHLY REGARDED FUNDS SUCH AS DREYFUS APPRECIATION FUND PASADENA GROWTH FUND AND VANGUARD US GROWTH PORTFOLIO EITHER SUFFERED SMALL LOSSES OR POSTED ONLY MINUSCULE GAINS LAST YEAR MEANWHILE MOST STOCK FUNDS ROARED AHEAD CLIMBING AN AVERAGE OF 125 IN 1993 FOR MANY GROWTHSTOCK FUNDS IT WAS THE SECOND CONSECUTIVE YEAR OF POOR PERFORMANCE YOU'VE HAD THE PENDULUM SWING FROM 1991 WHEN THE MARKET BELIEVED THAT THESE QUALITY BRANDEDGOODS GROWTH COMPANIES HAD INFINITE PRICING POWER TO THE POINT NOW WHERE THE MARKET THINKS THESE COMPANIES HAVE NO PRICING POWER AT ALL SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER IT'S ONE OF THE FEW AREAS OF THE MARKET THAT IS REALLY OUT OF FAVOR MUTUALFUND ANALYSTS OFTEN DIVIDE US STOCK FUNDS INTO FOUR CAMPS LARGECOMPANY GROWTH FUNDS LARGECOMPANY VALUE FUNDS SMALLCOMPANY GROWTH FUNDS AND SMALLCOMPANY VALUE FUNDS GROWTH FUNDS BUY COMPANIES THAT HOLD THE PROMISE OF RAPID FUTURE EARNINGS GROWTH VALUE PLAYERS FAVOR STOCKS THAT ARE CHEAP COMPARED WITH CORPORATE ASSETS OR CURRENT EARNINGS SOME ANALYSTS THINK THAT LARGECOMPANY GROWTH FUNDS NOW ARE AMONG THE MOST ATTRACTIVE SECTORS OF THE STOCKFUND UNIVERSE DESPITE THE RIPROARING BULL MARKET OF THE PAST FEW YEARS THESE FUNDS HAVE TAKEN IT ON THE CHIN AS TOBACCO FOOD AND DRUG STOCKS HAVE FALLEN FROM FAVOR OVER THE PAST YEAR AND A HALF IT'S BEEN ONE OF THE MOST BEATENUP SECTORS OF THE MARKET SAYS KENNETH GREGORY EDITOR OF THE NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER OVER THE NEXT TWO OR THREE YEARS IT MAY BE ONE OF THE BEST STYLES TO PLAY MR GREGORY IS ADVISING HIS SUBSCRIBERS TO BUY THE VANGUARD US GROWTH PORTFOLIO A NOLOAD NOCOMMISSION MUTUAL FUND WITH A 3000 MINIMUM THAT'S RUN BY CHICAGO'S LINCOLN CAPITAL MANAGEMENT WHILE EARNINGS GROWTH HAS SLOWED IN THE GROWTHSTOCK GROUP YOU'RE STILL GETTING BETTERTHANAVERAGE GROWTH HE NOTES IF THE EARNINGS CONTINUE TO COME THROUGH THE PRICE/EARNINGS MULTIPLES WILL KEEP GETTING BETTER AND BETTER AND THAT SHOULD EVENTUALLY CATCH INVESTORS' ATTENTION THE SELLOFF IN COMPANIES SUCH AS MERCK & CO PFIZER INC AND PHILIP MORRIS COS HAS PUT LARGE DENTS IN THE PERFORMANCES OF SOME WIDELY ADMIRED MUTUALFUND MANAGERS AMONG THOSE WHO HAVE BEEN HIT HARD ARE FAYEZ SAROFIM A PRIVATE MONEY MANAGER WHO HAS RUN THE DREYFUS APPRECIATION FUND SINCE OCTOBER 1990 AND ROGER ENGEMANN MANAGER OF THE PASADENA GROWTH FUND AND THE PASADENA NIFTY FIFTY FUND THE DREYFUS AND PASADENA FUNDS DEMAND A 2500 MINIMUM INVESTMENT THE DREYFUS FUND CAN BE BOUGHT WITHOUT PAYING A LOAD BOTH PASADENA FUNDS CHARGE A 55 SALES COMMISSION LARGECOMPANY GROWTH STOCKS HAVE BEEN SO BATTERED THAT THE SHARES HAVE EVEN ATTRACTED SOME VALUE INVESTORS INCLUDING CLIPPER FUND'S JAMES GIPSON AND YACKTMAN FUND'S DONALD YACKTMAN DESPITE A LARGE STAKE IN TOBACCO AND DRUG STOCKS CLIPPER FUND GAINED 113 LAST YEAR YACKTMAN FUND WASN'T NEARLY SO LUCKY TUMBLING 66 OVER THE PAST 12 MONTHS MORNINGSTAR CALCULATES THE YACKTMAN FUND HAS MORE THAN 32 OF ITS STOCK MARKET MONEY IN HEALTHCARE COMPANIES AND ALMOST 27 IN CONSUMER STAPLES WHICH INCLUDES FOOD AND TOBACCO STOCKS I'M INTERESTED IN THE LOW PRICE/EARNINGS PART AND YACKTMAN FUND FITS THAT TO A T SAYS LEWIS ALTFEST PRESIDENT OF LJ ALTFEST & CO A NEW YORK INVESTMENT ADVISER I THINK THE NEXT YEAR IS GOING TO BE A GOOD YEAR FOR YACKTMAN YACKTMAN IS THE PUREST PLAY ON WHAT'S DONE POORLY GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER IS INTRIGUED BY BOTH THE YACKTMAN FUND AND THE VANGUARD INDEX TRUSTGROWTH PORTFOLIO AN INDEX FUND THAT OWNS THE GROWTH STOCKS IN THE STANDARD & POOR'S 500STOCK INDEX VANGUARD INDEX TRUSTGROWTH PORTFOLIO EKED OUT A GAIN OF 15 LAST YEAR WHILE THE VANGUARD INDEX TRUSTVALUE PORTFOLIO WHICH OWNS THE VALUE STOCKS IN THE S&P 500 SOARED 183 WE'RE WATCHING THE GROWTHSTOCK SECTOR VERY VERY CLOSELY SAYS MR PERRITT I THINK IT'S A LITTLE TOO EARLY I SUSPECT THAT SOMETIME THIS YEAR PROBABLY IN THE FIRST HALF THERE WILL BE A NEGATIVE SURPRISE WHICH WILL SET OFF A CORRECTION AND THAT'S WHEN I JUMP IN WITH BOTH FEET NOT EVERYBODY IS BULLISH ON LARGECOMPANY GROWTH STOCKS YOU'RE STILL BUYING INTO A PRICEY MARKET SAYS ROBERT BINGHAM AN INVESTMENT ADVISER WITH SAN FRANCISCO'S BINGHAM OSBORN & SCARBOROUGH AND IF THE MARKET GOES DOWN THOSE FUNDS WILL PROBABLY STILL GO DOWN MORE THAN THE VALUE FUNDS MORNINGSTAR'S MR PHILLIPS WHO OWNS BOTH THE PASADENA NIFTY FIFTY FUND AND THE YACKTMAN FUND CONCEDES THAT THE LARGECOMPANY GROWTH FUNDS WILL TAKE A TUMBLE IF THE BROAD MARKET FALLS BUT HE THINKS THAT BECAUSE THE STOCKS ARE DOWN A LOT ALREADY THAT COULD PROVIDE A CUSHION IF THERE'S A MARKETWIDE SELLOFF 9401070108 940107 BUSINESS OF LAW LEGAL BEAT AIG WILL OFFER INSURANCE POLICY FOR DEFENDANTS IN PATENT CASES BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL A MAJOR INSURER IS SET TO OFFER PATENTINFRINGEMENT INSURANCE A MOVE THAT REFLECTS THE GROWING IMPORTANCE OF PATENT PROTECTION IN HIGHTECHNOLOGY INDUSTRIES AMERICAN INTERNATIONAL GROUP INC'S POLICY WILL COVER UP TO 5 MILLION A YEAR FOR LIABILITY AND LEGAL EXPENSES INCURRED BY DEFENDANTS IN PATENT CASES THE POLICY IS DESIGNED PRIMARILY FOR LARGE COMPANIES ACCUSED OF ILLEGALLY MARKETING PATENTED PRODUCTS OR USING PATENTED TECHNOLOGY AIG'S MOVE COMES IN RESPONSE TO THE GROWING TENDENCY OF SUCH DISPUTES TO LAND IN THE COURTS AS PATENT OWNERS SEEK LEGAL PROTECTION FOR THEIR EXCLUSIVE SALES RIGHTS IN 1992 1474 PATENT CASES WERE FILED IN FEDERAL COURTS NEARLY A 75 INCREASE OVER A DECADE EARLIER ACCORDING TO THE ADMINISTRATIVE OFFICE OF THE US COURTS THE RISE IN LITIGATION HAS BEEN FUELED BY THE ENORMOUS VALUE OF PATENTED INVENTIONS IN HIGHTECHNOLOGY INDUSTRIES AND BY THE LURE OF BIG JURY AWARDS IN SOME RECENT CASES DECLINING SALES IN SOME RECESSIONPLAGUED INDUSTRIES HAVE ALSO PLAYED A ROLE MAKING COMPANIES THAT HOLD PATENTS MORE ZEALOUS ABOUT TRYING TO KEEP INFRINGERS AWAY FROM THEIR TURF BECAUSE PATENT SUITS TYPICALLY REVOLVE AROUND COMPLICATED TECHNOLOGY THEY ARE AMONG THE MOST CUMBERSOME AND EXPENSIVE CASES IN THE LEGAL SYSTEM AND SOME PATENT SPECIALISTS WORRY THAT THE AVAILABILITY OF INSURANCE WILL BOG THE COURTS DOWN WITH EVEN MORE COMPLEX LITIGATION THE MORE BROADLY YOU'RE INSURED AGAINST THIS SORT OF THING THE MORE YOU LOOK LIKE A SUITABLE TARGET BY SOMEBODY WHO HAS A PATENT SAYS KENNETH MADSEN A PATENT LAWYER AT THE NEW YORK LAW FIRM KENYON & KENYON IT'S A STEP IN THE DIRECTION OF PERSONALINJURY LITIGATION MR MADSEN ADDS WHICH WOULD BE GREATLY DIMINISHED WERE IT NOT FOR THE INSURANCE COVERAGE PATENT OWNERS THEMSELVES ALREADY HAVE ACCESS TO INSURANCE THAT COVERS THEIR EXPENSES AS PLAINTIFFS INTELLECTUAL PROPERTY INSURANCE SERVICES CORP LOUISVILLE KY FOR EXAMPLE OFFERS SMALL COMPANIES POLICIES THAT WILL PAY UP TO 500000 TO ENFORCE PATENTS THEY BELIEVE ARE BEING INFRINGED ALSO A NUMBER OF INVESTMENT POOLS AND LIMITED PARTNERSHIPS RECENTLY HAVE EMERGED TO HELP FUND SMALL INVENTORS' LAWSUITS IN RETURN FOR A CUT OF ANY JUDGMENT OR SETTLEMENT ROBERT FLETCHER PRESIDENT OF INTELLECTUAL PROPERTY INSURANCE SERVICES ACKNOWLEDGES THAT FINANCING PATENT LAWSUITS MAY ENCOURAGE MORE LITIGATION HOWEVER HE SAYS MANY OF THOSE SUITS ARE NECESSARY TO ENFORCE THE RIGHTS OF LITTLE GUYS WHO AREN'T BEING TREATED FAIRLY BY THE PATENT SYSTEM IN THE PAST MANY DEFENDANTS IN PATENT CASES HAVE TRIED TO OBTAIN INSURANCE COVERAGE THROUGH THEIR SOCALLED COMPREHENSIVE GENERAL LIABILITY POLICIES BUT INSURERS INCLUDING AIG HAVE BALKED AT THOSE EFFORTS INSISTING THAT THE COMPREHENSIVE POLICIES WEREN'T DESIGNED FOR PATENT DISPUTES LAST SEPTEMBER A CALIFORNIA APPEALS COURT AGREED WITH THE INSURERS RULING THAT AN AETNA CASUALTY & SURETY CO COMPREHENSIVE POLICY DOESN'T COVER PATENT CASES ONE REASON AIG AND OTHER INSURERS HAVE AVOIDED PATENTINFRINGEMENT INSURANCE UNTIL NOW IS THE DIFFICULTY IN ASSESSING THE EXTENT OF A COMPANY'S VULNERABILITY PARTICULARLY WITH HIGHTECH PRODUCTS IT IS OFTEN UNCLEAR EXACTLY WHAT A PARTICULAR PATENT COVERS OR HOW SIMILAR ONE INVENTION IS TO ANOTHER AS A RESULT EVEN COMPANIES THAT APPEAR TO BE ACTING WITHIN THEIR RIGHTS OFTEN FIND THEMSELVES TARGETS OF INFRINGEMENT SUITS IN ADDITION UNLIKE PERSONALINJURY CASES IN WHICH ONE SIDE OFTEN CONCEDES LIABILITY BUT FIGHTS OVER THE AMOUNT OF DAMAGES PATENT CASES USUALLY INVOLVE CONTESTS OVER BOTH LIABILITY AND DAMAGES IN A PATENT CASE YOU HAVE TWO BIG UNKNOWNS INSTEAD OF ONE BIG UNKNOWN SAYS MR MADSEN THE PATENT LAWYER BY INSURING SUCH CASES YOU'RE BUYING A VERY HIGH RISK SOME INSURERS HAVEN'T OFFERED PATENTLIABILITY POLICIES BECAUSE OF THE FEAR THAT SOME COMPANIES MIGHT INTENTIONALLY INFRINGE PATENTS KNOWING THAT THE INSURER WOULD PICK UP THE TAB OF ANY LITIGATION IT'S LIKE INSURING MURDER SAYS SEAN MOONEY AN ECONOMIST AT THE INSURANCE INFORMATION INSTITUTE A TRADE ASSOCIATION PROTECTING PEOPLE FROM LIABILITY OFTEN ENCOURAGES THAT KIND OF BEHAVIOR AIG WILL ATTEMPT TO CONTROL ITS RISK ON THE NEW POLICIES BY REQUIRING HIGHER DEDUCTIBLES AND CHARGING HIGHER PREMIUMS FOR COMPANIES THAT HAVE A HISTORY OF LITIGATION OR THAT HAVEN'T CLOSELY SCRUTINIZED THEIR OWN VULNERABILITY TO LAWSUITS ANNUAL PREMIUMS FOR 5 MILLION OF COVERAGE ARE EXPECTED TO AVERAGE BETWEEN 150000 AND 200000 A YEAR AN AIG SPOKESMAN SAID THE POLICY DOESN'T COVER PUNITIVE DAMAGES WHICH COULD BE AWARDED IN CASES WHERE A COMPANY INTENTIONALLY INFRINGES A PATENT MILBANK TWEED HADLEY & MCCLOY LOST THE APPEAL OF A 2 MILLION JURY VERDICT AGAINST IT STEMMING FROM AN ALLEGED CONFLICT OF INTEREST IN A RULING BY THE SECOND US CIRCUIT COURT OF APPEALS MILBANK WAS FOUND TO HAVE COMMITTED A SERIOUS BREACH OF ITS FIDUCIARY DUTY WHEN WITHOUT ITS CLIENT'S CONSENT IT REPRESENTED THE CLIENT'S AGENT IN A DEAL THAT WAS ALLEGEDLY AGAINST THE CLIENT'S INTERESTS THE DECISION INVOLVED FORMER CLIENT CAROL SUIHAN LEO THE DAUGHTER OF MALAYSIAN INVESTOR TK WEN MRS LEO RETAINED THE BIG NEW YORK LAW FIRM IN 1985 TO REPRESENT HER IN THE TWOSTEP PURCHASE OF CERTAIN ASSETS OF THE BANKRUPT DEAK & CO THE NATURE AND EXTENT OF THE ATTORNEYCLIENT RELATIONSHIP WAS CLOSELY CONTESTED BY MILBANK AT TRIAL WHEN MRS LEO HESITATED TO COMPLETE THE SECOND STAGE OF THE 52 MILLION DEAL HER AGENT SINGAPORE ATTORNEY CHAN CHER BOON EXPRESSED INTEREST AFTER STATING IN WRITING THAT IT WOULDN'T COUNSEL HIM IN ANY RELATED MATTER WITHOUT MRS LEO'S PERMISSION MILBANK PROCEEDED TO REPRESENT MR CHAN IN A SUCCESSFUL BID FOR THE REMAINING ASSETS ACCORDING TO THE COURT'S OPINION MILBANK ARGUED THAT MRS LEO WAS NOT HARMED BY ITS SUBSEQUENT REPRESENTATION OF MR CHAN BECAUSE SHE COULD NOT SHOW THAT THE FIRM'S CONDUCT CAUSED HER TO LOSE ASSETS FOR WHICH SHE NEVER BID BUT THE THREECOURT PANEL REJECTED THE ARGUMENT SHE WAS PREVENTED FROM OBTAINING THE SECONDSTAGE ASSETS BY HER FORMER AGENT ASSISTED BY HER FORMER ATTORNEY THE COURT WROTE ANDREW S O'CONNOR AN ATTORNEY WITH THE NEW YORK FIRM LIDDLE O'CONNOR FINKELSTEIN & ROBINSON WHICH REPRESENTED MILBANK SAID THE LAW FIRM HAD NOT DECIDED WHETHER TO PURSUE AN APPEAL MILBANK TWEED VS CHAN CHER BOON NO 937418 A NEW YORK LAWYER WAS ARRAIGNED IN FEDERAL COURT IN MANHATTAN FOR HIS ALLEGED PARTICIPATION IN TWO SEPARATE INSIDERTRADING RINGS ONE INVOLVING ILLEGAL TRADES IN THE SHARES OF NORTON CO AND THE OTHER INVOLVING THE SHARES OF MOTEL 6 LP THE ARRAIGNMENT MARKS THE FIRST TIME PROSECUTORS HAVE CHARGED ANY INDIVIDUAL WITH PARTICIPATION IN BOTH RINGS THE US ATTORNEY'S OFFICE IN MANHATTAN CHARGED JOSEPH GREENWALD WITH CONSPIRACY IN RELATION TO TRADES IN THE SHARES OF BOTH COMPANIES' STOCK IN 1990 BEFORE THE PUBLIC ANNOUNCEMENT THAT THEY WERE TARGETS OF TENDER OFFERS MR GREENWALD OPERATES GREENWALD SECURITIES TRADING INC FROM OFFICES IN LOWER MANHATTAN WHERE MICHAEL BORLINGHAUS A GERMAN INVESTOR WHO PLEADED GUILTY TO CHARGES STEMMING FROM THE NORTON INVESTIGATION ALSO LEASED SPACE MR GREENWALD 33 YEARS OLD WAS ALSO A FRIEND AND COLLEGE CLASSMATE OF JOHN ANDERSON A CALIFORNIA TANNINGSALON OWNER WHO PLEADED GUILTY TO CONSPIRACY IN THE MOTEL 6 CASE AND FROM WHOM PROSECUTORS CONTEND MR GREENWALD RECEIVED CERTAIN INSIDE INFORMATION BOTH MR BORLINGHAUS AND MR ANDERSON AWAIT SENTENCING TO DATE 11 INDIVIDUALS HAVE BEEN CRIMINALLY CHARGED IN ONE OR ANOTHER OF THE TWO CASES ACCORDING TO ASSISTANT US ATTORNEY DAVID MEISTER WHO SAID INVESTIGATIONS INTO BOTH MATTERS CONTINUE NOTED JAY B STEPHENS FORMER US ATTORNEY IN WASHINGTON DC IS JOINING THE WASHINGTON OFFICE OF PILLSBURY MADISON & SUTRO MR STEPHENS FREQUENTLY MENTIONED AS A POSSIBLE REPUBLICAN CANDIDATE FOR THE US SENATE IN VIRGINIA SAID HE IS WITHDRAWING FROM CONSIDERATION IN THE RACE AND WILL BE AN ACTIVE LITIGATION PARTNER AT THE TIME HE WAS REMOVED AS US ATTORNEY BY THE NEW ADMINISTRATION LAST APRIL MR STEPHENS WAS OVERSEEING AN INVESTIGATION OF THE HOUSE POST OFFICE AND ITS DEALINGS WITH WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL THE PROBE IS CONTINUING MR ROSTENKOWSKI HAS NOT BEEN CHARGED WITH ANY WRONGDOING MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9401070107 940107 LETTERS TO THE EDITOR TOUGH ENOUGH A DEC 10 WASHINGTON WIRE ITEM GIVES THE FALSE IMPRESSION ABOUT MY FRIEND PHIL LADER IE THAT HE IS NOT TOUGH ENOUGH TO BE DEPUTY CHIEF OF STAFF AT THE WHITE HOUSE HIS CRITICS ARE CONFUSING STYLE WITH SUBSTANCE WHEN PHIL RAN FOR GOVERNOR IN SOUTH CAROLINA IN 1986 I WAS THE COORDINATOR OF HIS CAMPAIGN IN CHARLESTON HE EXPECTED ALL TASKS TO BE PERFORMED SWIFTLY AND COMPETENTLY MORE IMPORTANT HE INSPIRES THE PEOPLE WHO WORK FOR HIM TO PLAY AT THE TOP OF THEIR GAME IT WILL BECOME QUICKLY APPARENT TO ANYONE IN DOUBT THAT PRESIDENT CLINTON HAS CHOSEN WISELY 9401070106 940107 QUARTERLY MUTUAL FUNDS REVIEW CANADIAN WHIZZES COIN NEW FUNDFINANCING VEHICLES BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CANADA'S FINANCIAL WIZARDS ARE CRAFTING WAYS FOR AFFLUENT INVESTORS TO KEEP TAXES AT BAY WHILE THEY HELP TO FINANCE THE SURGING SALES OF CANADIAN MUTUAL FUNDS AS MUCH AS 80 OF NEW FUND SALES IN CANADA ARE OF THE DEFERREDLOAD VARIETY WHERE THE INVESTOR DOESN'T PAY A SALES CHARGE UPFRONT BUT RATHER PAYS IT UPON LEAVING THE FUND THE LOAD DECLINES AS INVESTORS STAY IN THE FUND TYPICALLY REACHING ZERO AFTER ABOUT SIX YEARS THIS STRUCTURE HAS HELPED CANADIAN INDUSTRY ASSETS TO SOAR BUT IT IS A CASH DRAIN FOR FUND COMPANIES WHICH FIND THEMSELVES IN THE AWKWARD POSITION OF HAVING TO PAY SALES COMMISSIONS UPFRONT TO A FUNDSELLING BROKER WHILE WAITING FOR MONTHS OR YEARS TO COLLECT A LOAD TO MEET THEIR CASH NEEDS MOST FUND COMPANIES PREVIOUSLY TURNED TO LIMITED PARTNERSHIPS OFFERING RETURNS OF AS MUCH AS 20 ANNUALLY IN EXCHANGE FOR CAPITAL BUT TODAY THE CANADIAN GOVERNMENT IS CHIPPING AWAY AT THE TAX BREAKS AND INCENTIVES THAT HAVE MADE THEM ATTRACTIVE TO INVESTORS SO NOW CANADA'S INVESTMENT DEALERS ARE RUSHING TO THE RESCUE OF THE FUND COMPANIES OFFERING A VARIETY OF NEW WAYS TO PACKAGE INTO SECURITIES THE LOANS THAT FINANCE THE BROKERS' FUNDSALES COMMISSIONS SCOTIAMCLEOD INC A TORONTO INVESTMENT DEALER IS OFFERING TO ACQUIRE AND ROLL UP INTO ONE BIGGER ENTERPRISE 12 SMALL LIMITED PARTNERSHIPS VALUED AT A TOTAL OF ABOUT 90 MILLION CANADIAN DOLLARS US682 MILLION IN EXCHANGE INVESTORS WOULD RECEIVE SHARES IN A PUBLICLY TRADED LIMITED PARTNERSHIP MASTER MUTUAL LIMITED PARTNERSHIP WHICH UNDER NEW TAX RULES WOULD BE ELIGIBLE FOR INCLUSION IN RETIREMENTSAVINGS PLANS THUS SHELTERING THE HIGHYIELDING INVESTMENT FROM TAX HOLDERS OF THE ENTITIES SCOTIAMCLEOD IS SEEKING TO ACQUIRE ALREADY HAVE REAPED ALL OF THEIR UPFRONT TAX SAVINGS A 50 WRITEOFF IN THE FIRST YEAR AND A 25 DEDUCTION IN EACH OF THE NEXT TWO YEARS WITH THOSE TAX SAVINGS USED UP INVESTORS FACE A PRETTY HEAVY TAX BURDEN SAYS ROBERT WILLIAMS SENIOR VICE PRESIDENT AND DIRECTOR OF EQUITY CAPITAL MARKETS AT SCOTIAMCLEOD THIS WOULD GIVE THEM LIQUIDITY AND ALLOW THEM TO SHELTER THE INCOME STREAM STEVE KANGAS A MUTUALFUND ANALYST AT MIDLAND WALWYN CAPITAL SAYS THE POOLING OF THE PARTNERSHIPS OFFERING INVESTORS LIQUIDITY AND FURTHER TAX BREAKS COULD HELP TO ENSURE THE FUTURE OF THE FINANCING VEHICLE EVEN IF AS EXPECTED THE CANADIAN GOVERNMENT REMOVES SOME OF THE UPFRONT TAX BREAKS FOR OTHER PARTNERSHIPS IT REMAINS TO BE SEEN WHETHER THE SCOTIAMCLEOD OFFER WILL SUCCEED IT ALREADY HAS BEEN AMENDED TO RESPOND TO CONCERNS OVER NEW MANAGEMENT FEES AND OTHER ISSUES THE BID EXPIRES JAN 18 THE MUTUALFUND CONCERNS THAT FORMED THE LIMITED PARTNERSHIPS SCOTIAMCLEOD IS SEEKING TO ACQUIRE HAVE YET TO RECOMMEND EITHER ACCEPTANCE OR REJECTION AT LEAST ONE MAJOR FUND CONCERN MACKENZIE FINANCIAL CORP OPTED INSTEAD TO FORGE AHEAD WITH ITS OWN SIMILAR PLAN WITH NEARLY C8 BILLION IN ASSETS UNDER MANAGEMENT THE COMPANY HAS ENOUGH OF ITS OWN LIMITED PARTNERSHIPS OUTSTANDING TO CONSOLIDATE THEM AND LIST THE NEW ENTITY ON THE TORONTO STOCK EXCHANGE EARLY THIS YEAR UNLIKE THE SCOTIAMCLEOD PROPOSAL MACKENZIE WON'T CHARGE INVESTORS A MANAGEMENT FEE IN THE MEANTIME ANOTHER CANADIAN INVESTMENT DEALER HAS COME UP WITH A SOLUTION IT HOPES WILL PROVIDE AN ALTERNATIVE TO THE LIMITED PARTNERSHIPS BURNS FRY LTD PLANS TO LAUNCH THIS MONTH A PLAN TO SECURITIZE THE FUTURE INCOME STREAM FROM A DEFERREDLOAD FUND AND MARKET A FIXEDINCOME SECURITY TO INSTITUTIONAL INVESTORS THESE WOULD BE ATTRACTIVE INVESTMENTS SINCE UNLIKE CAR LOANS OR CREDITCARD SECURITIZATIONS THE RISK OF DEFAULT IS ZERO SAYS KEN SCOTT AN ASSOCIATE AT BURNS FRY IN OTHER WORDS PEOPLE CAN'T PULL THEIR MONEY OUT OF A FUND WITHOUT PAYING THE REQUIRED FEES PRINCIPAL PAYMENTS ARE SPREAD OVER THE LIFE OF THE NOTES WITH THE TERM MATCHING THE PERIOD DURING WHICH INVESTORS HAVE TO PAY A LOAD UPON EXITING BY THE TIME SAY SIX YEARS HAVE PASSED AND NO LOAD IS BEING CHARGED TO INVESTORS WHO HAVE STAYED IN THE FUND THE NOTE WOULD HAVE BEEN PAID OFF IN FULL BECAUSE INSTITUTIONAL INVESTORS IN RETURN FOR A SECURE FIXEDINCOME INVESTMENT WON'T SEEK THE SAME HIGH RETURNS AS INDIVIDUALS BUYING INTO THE LIMITED PARTNERSHIPS MR SCOTT SAYS HE BELIEVES THIS WILL BE A CHEAPER OPTION FOR MUTUALFUND COMPANIES THESE INITIATIVES ARE IMPORTANT BECAUSE FOR MOST COMPANIES THE COMMISSION COSTS CAN'T BE FINANCED THROUGH NORMAL BANK LOANS SAYS MR KANGAS ONE OPTION THAT NO ONE SEEMS TO BE CONSIDERING IS ABANDONING THE TACTIC OF USING DEFERREDLOAD FUNDS EVEN EXECUTIVES AT TRIMARK FINANCIAL CORP WHICH WAS FORCED TO GO PUBLIC MUCH EARLIER THAN PLANNED TO RAISE CAPITAL TO PAY COMMISSIONS SAY THEY EXPECT THESE FUNDS TO CONTINUE TO REPRESENT A SIGNIFICANT PART OF FUTURE SALES TO DATE TRIMARK IS THE ONLY LARGE FUND MANAGER THAT HASN'T TURNED TO LIMITED PARTNERSHIPS TO FINANCE COMMISSION COSTS ANALYSTS AGREE THE PROBLEM IS ONE THAT MAY SOON REAR ITS HEAD IN THE US WHERE DEFERRED LOAD FUNDS ARE GAINING IN POPULARITY AS COMPETITION WITH NOLOAD FUNDS GROWS FUND COMPANIES ARE BEING PUSHED INTO LOWERING FEES OR OFFERING A DEFERREDLOAD PRODUCT ANALYSTS EXPECT THE DEFERREDLOAD FUNDS NOW THE FASTESTGROWING SEGMENT OF THE MARKET TO REPRESENT AS MUCH AS 20 OF THE US FUND INDUSTRY'S LONGTERM ASSETS UNDER MANAGEMENT BY YEAR END UP FROM ABOUT 15 LAST YEAR 9401070105 940107 ECONOMY RETAILERS POST MODERATE GAINS IN HOLIDAY SALES BETTER RESULTS ATTRIBUTED TO STEEP DISCOUNTING IMPACT ON PROFITS SEEN BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL STRONG CONSUMER BUYING JUST BEFORE AND AFTER CHRISTMAS HELPED THE NATION'S BIGGEST RETAIL CHAINS RING UP MODEST SALES GAINS FOR THE HOLIDAY PERIOD BUT THE RESULTS REPORTED YESTERDAY WERE ACHIEVED ONLY AFTER RETAILERS RESORTED TO STEEP DISCOUNTING ESPECIALLY IN THE WEAKERTHANUSUAL APPAREL AREA ANALYSTS EXPECT THIS TO HURT FOURTHQUARTER PROFITS AT MANY STORES OVERALL SALES IN STORES OPEN AT LEAST A YEAR INCREASED 43 IN DECEMBER ACCORDING TO AN INDEX COMPILED BY SALOMON BROTHERS ANOTHER INDEX PREPARED BY MERRILL LYNCH & CO PUT THE SAMESTORE SALES GAIN AT 36 FOR THE MONTH BOTH FIGURES WERE IN LINE WITH WHAT ANALYSTS SAID THEY EXPECTED AT THE END OF THE HOLIDAY SEASON THE BUOYANT FINISH TO DECEMBER HAS RETAIL WATCHERS DISAGREEING ABOUT WHAT WILL HAPPEN IN THE FIRST MONTHS OF THIS YEAR SOME SAID CONSUMERS WILL CONTINUE THEIR AGGRESSIVE SPENDING OTHERS BELIEVE SHOPPERS WILL BEHAVE AS THEY DID LAST YEAR WHEN THE FIRST QUARTER SAW A BROAD CONSUMER PULLBACK RETAILERS' FORTUNES CONTINUED TO HINGE ON THE TYPE OF STORES THEY OPERATED DEPARTMENT STORES BUOYED BY CONSUMER INTEREST IN HOME FURNISHINGS REPORTED STRONGER SALES THAN ANALYSTS EXPECTED EVEN THOUGH APPAREL SALES WERE ANEMIC SPECIALTY APPAREL CHAINS HAD A WEAK SHOWING UNDERPERFORMING ANALYSTS' MODEST EXPECTATIONS DISCOUNT STORES HAD MODERATE GAINS MEETING ANALYSTS' EXPECTATIONS BUT WAREHOUSE CLUBS DID POORLY FAILING TO MEET EXPECTATIONS WITH THE EXCEPTION OF TOY SALES THE HOLIDAY PERIOD IS LESS IMPORTANT FOR DISCOUNT STORES THAN FOR OTHER RETAIL FORMATS MANY RETAILERS ATTRACTED CUSTOMERS THE WEEK AFTER CHRISTMAS BY CUTTING PRICES THE WEEK AFTER CHRISTMAS IS USUALLY A GOOD WEEK BUT IT WAS A VERY GOOD WEEK THIS YEAR A DAYTON HUDSON CORP SPOKESWOMAN SAID THERE WAS A LOT OF APPAREL ON SALE BECAUSE CONSUMERS DIDN'T BUY IT BEFORE CHRISTMAS SHE SAID FOR DECEMBER AS A WHOLE AUTO SALES AND HOME PRODUCT SALES CROWDED OUT APPAREL SALES SAID EDWARD JOHNSON A RETAIL ANALYST WITH LYNCH JONES & RYAN INC THAT WILL CONTINUE THIS YEAR BUT IT WON'T BE AS DESTRUCTIVE TO CLOTHING SALES HE SAID SOME DEPARTMENT STORES DID EXCEPTIONALLY WELL JC PENNEY CO SAID STRONG SALES OF HOME FURNISHINGS AND APPAREL AND ITS BIGGER HOLIDAY ADVERTISING BUDGET PRODUCED A 10 GAIN IN SAMESTORE SALES WHICH REPRESENT SALES AT STORES OPEN AT LEAST A YEAR SEARS ROEBUCK & CO BENEFITED FROM IMPROVED CONSUMER ELECTRONICS APPLIANCE AND HOMEFURNISHING SALES AS WELL AS STRONG APPAREL SALES WHICH HELPED THE COMPANY SCORE A 133 SAMESTORE SALES GAIN SALES AT OTHER DEPARTMENT STORE CHAINS WERE LESS BUOYANT MAY DEPARTMENT STORES CO THE NATION'S LARGEST OPERATOR OF TRADITIONAL DEPARTMENT STORES REPORTED A 49 SALES GAIN IN DECEMBER FEDERATED DEPARTMENT STORES INC SAID IT GOT TWO SURPISES FOR CHRISTMAS STEEPERTHANPLANNED DISCOUNTS AND HIGHERTHANEXPECTED SALES FEDERATED'S SAMESTORE SALES INCREASED 48 FOR THE MONTH SPECIALTY APPAREL SELLERS WEREN'T SO LUCKY LIMITED INC REPORTED A 1 DECLINE IN SAMESTORE SALES IN DECEMBER WHILE MELVILLE CORP SAID ITS SALES DROPPED 08 IN THE MONTH GAP INC HOWEVER FARED BETTER THAN MOST CLOTHING SELLERS REGISTERING A 4 SAMESTORE SALES GAIN TJX CO'S SAMESTORE SALES INCREASED 3 DISCOUNTSTORE OPERATORS POSTED MODERATE GAINS WALMART STORES INC THE NATION'S LARGEST RETAILER SAID ITS DECEMBER SAMESTORE SALES ROSE 4 THE COMPANY WAS HURT BY A 5 SAMESTORE SALES DECLINE AT ITS SAM'S CLUB WAREHOUSE STORES KMART CORP HURT BY POOR PERFORMANCE IN ITS WAREHOUSE AND DRUGSTORE UNITS EKED OUT A 11 SAMESTORE SALES INCREASE DAYTON HUDSON CORP WHICH OPERATES TARGET DISCOUNT STORES MERVYN'S MODERATEPRICE STORES AND UPSCALE DEPARTMENT STORES REPORTED A 32 SAMESTORE SALES GAIN LOOKING AHEAD KAREN SACK A STANDARD & POOR'S CORP RETAIL ANALYST BELIEVES 1994 WILL HAVE ITS UPS AND DOWNS AS 1993 DID THE FIRST QUARTER WILL PROBABLY BE VERY WEAK SHE SAID BEFORE PICKING UP LATER IN THE YEAR I'M LOOKING FOR A SAWTOOTHED PATTERN TO RETAIL SALES THIS YEAR 9401070104 940107 ADVERTISING DEAD CELEBRITIES ARE RESURRECTED AS PITCHMEN BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL DEAD MEN MAY TELL NO TALES BUT MADISON AVENUE IS COUNTING ON THEM TO SELL PRODUCTS DECEASED NOTABLES ARE BEING FEATURED IN PRINT AND TELEVISION ADS TO HAWK EVERYTHING FROM THE INTEGRITY OF BROKERAGE HOUSES TO THE COMFORT OF KHAKI TROUSERS COMPANIES SUCH AS MCDONALD'S GAP AND PEPSICO ARE SEARCHING THROUGH THE ESTATES OF THE DEPARTED TO GET PERMISSION AND PAY FEES FOR THE USE OF THE CELEBRITY ONE REASON FOR THE TREND SAY ADVERTISING INDUSTRY OFFICIALS IS THAT THERE'S VIRTUALLY NO RISK OF BEING EMBARRASSED NO MICHAEL JACKSON OR MADONNA TO WORRY PEPSI EXECUTIVES WITH THEIR ALLEGED MISBEHAVIOR LAST YEAR THE FLORIDA DEPARTMENT OF CITRUS AIRED COMMERCIALS WITH BURT REYNOLDS WHILE HIS MESSY SEPARATION FROM LONI ANDERSON WAS BEING PLAYED OUT IN TABLOIDS AND ON TALK SHOWS THE COMMERCIALS WERE PULLED IN JULY FOUR MONTHS BEFORE THE CONCLUSION OF MR REYNOLDS' ONEYEAR CONTRACT PEOPLE STARTED TALKING MORE ABOUT BURT REYNOLDS AND HIS DIVORCE THAN BURT REYNOLDS AND ORANGE JUICE SAYS GENE RICHMOND THE STATE AGENCY'S DIRECTOR OF ADVERTISING A DEAD CELEBRITY IS A VERY SAFE COMMODITY FOR AN ADVERTISER TO USE THE CLIENT KNOWS WHAT HE IS GETTING SAYS MARK ROESLER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CURTIS MANAGEMENT IN INDIANAPOLIS WHICH REPRESENTS THE ESTATES AND FAMILIES OF DECEASED NOTABLES THE IMAGE THEY PROJECT DOESN'T DEVIATE FROM ONE MOMENT TO THE NEXT WITH LIVING CELEBRITIES A COMPANY MAY SIGN SOMEONE WHO IS CONSIDERED HOT AND SPEND MILLIONS BUILDING A MARKETING CAMPAIGN AROUND THAT PERSON IF THE CELEBRITY'S POPULARITY FADES QUICKLY THE AGENCY AND THE CLIENT ARE LEFT LOOKING FOR A NEW SPOKESMAN PERHAPS THAT IS WHY THE GAP'S WELLRECEIVED PRINT CAMPAIGN FOR ITS LINE OF KHAKI TROUSERS FEATURES SUCH STARS AS HUMPHREY BOGART ORSON WELLS ROCK HUDSON SAMMY DAVIS JR MARILYN MONROE PHOTOGRAPHER ANSEL ADAMS AND BROADWAY PRODUCER AND COMPOSER MOSS HART THERE ARE TWO LIVING CELEBRITIES IN THE GAP CAMPAIGN GENE KELLY AND PLAYWRIGHT ARTHUR MILLER A SPOKESMAN FOR THE SAN FRANCISCOBASED COMPANY SAYS THE CAMPAIGN BEGAN WHEN SOME MARKETING EXPERTS SUGGESTING USING PRESIDENT JOHN F KENNEDY IN THE KHAKI ADS THAT WAS INSTANTLY RULED OUT BY OTHER GAP EXECUTIVES THE SPOKESMAN SAYS BUT GAP MARKETERS WERE TOLD TO DRAW UP A WISH LIST OF CELEBRITIES WHO ILLUSTRATE LEGENDARY STYLE MR BOGART WHO DIED IN 1957 ALSO WAS ONE OF THE DEAD STARS ALONG WITH LOUIS ARMSTRONG JAMES CAGNEY AND CARY GRANT FEATURED IN A POPULAR DIET COKE CAMPAIGN IN 1992 CURTIS MANAGEMENT WHICH HANDLES USE OF MR BOGART'S IMAGE SAYS IT IS NEGOTIATING TO HAVE MR BOGART'S IMAGE APPEAR IN ADS FOR A TELECOMMUNICATIONS COMPANY IT DECLINES TO NAME THE COMPANY MCDONALD'S COMPLETED A CAMPAIGN LATE LAST YEAR WITH ACTORS PORTRAYING THE COMEDY TEAM OF ABBOTT AND COSTELLO FOR A TAKEOFF ON THE DUO'S FAMOUS WHO'S ON FIRST ROUTINE EVEN THOUGH IMAGES OF NEITHER BUD ABBOTT NOR LOU COSTELLO WERE IN THE SPOTS MCDONALD'S HAD TO PAY A FEE TO CURTIS MANAGEMENT FOR USE OF THEIR LIKENESSES AND PEPSI IS USING A BUDDY HOLLY LOOKALIKE FOR AN INTERNATIONAL TELEVISION CAMPAIGN IN THE SPOT A BORED STUDENT IN AN ALGEBRA CLASS SAYS TO NO ONE IN PARTICULAR AS BUDDY HOLLY WOULD SAY BE THERE OR BE SQUARE' THE CAMERA THEN FLASHES ON THE LOOKALIKE MARKETING EXPERTS SAY THE PARADE OF DECEASED STARS ISN'T GHOULISH CELEBRITIES LIKE BOGART RESONATE WITH BABY BOOMERS AND THEIR PARENTS SAYS LILLIAN MARESCH FOUNDER AND PRESIDENT OF GENERATION INSIGHTS IN MINNEAPOLIS THE BOOMERS ARE COMING TO TERMS WITH THEIR OWN MORTALITY AS THEY GET OLDER SO THEY DON'T NECESSARILY RUN FROM DEATH OR GET THE SAME GOOSE BUMPS AS WHEN THEY WERE CHILDREN OR YOUNG ADULTS BY NOW THEY'VE BEEN EXPOSED TO DEATH GARY STIBEL FOUNDER AND PRINCIPAL OF NEW ENGLAND CONSULTING A MANAGEMENT CONSULTING FIRM IN WESTPORT CONN DOESN'T THINK THE GAP ADS MAKE THE BEST USE OF DEAD CELEBRITIES BUT HE PRAISES THE DIET COKE ADS BECAUSE THEIR USE OF FILM CLIPS MAKES THEM MORE MEMORABLE I'M NOT SURE PEOPLE REMEMBER BOGART IN GAP ADS HE SAYS THEY'RE MORE LIKELY TO REMEMBER HIM FROM THE DIET COKE SPOTS MR STIBEL BELIEVES INTERNATIONAL BUSINESS MACHINES' USE OF CHARLIE CHAPLIN'S LITTLE TRAMP CHARACTER IN ITS PERSONAL COMPUTER COMMERCIALS THAT BEGAN RUNNING IN 1981 IS THE BEST EXAMPLE OF USING THE DECEASED THE CHARACTER COMPLEMENTED THE PRODUCT AND NEVER TOOK TOP BILLING INSTEAD THE CHARACTER WAS THE MESSENGER AND DIDN'T OVERSHADOW THE PRODUCT BUT IBM DISCONTINUED THE CHAPLIN SPOTS IN 1987 AND REPLACED THEM WITH CHARACTERS FROM THE HIT TELEVISION SERIES MASH THE SHOW HAD GONE OFF THE AIR FOUR YEARS EARLIER BUT WAS STILL POPULAR IN RERUNS ALL THE ACTORS FROM THE SITUATION COMEDY WERE ALIVE THE SPOTS BOMBED GERBER PRODUCTS CO FREMONT MICH AND GREY ADVERTISING NEW YORK HAVE ENDED THEIR RELATIONSHIP IN THE US AFTER THREE YEARS THE AGENCY SAID ANNUAL BILLINGS FROM GERBER'S BABYFOOD LINES ARE ABOUT 10 MILLION ACCORDING TO COMPETITIVE MEDIA REPORTING THE AGENCY ATTRIBUTED THE MUTUAL SPLIT TO POTENTIAL CONFLICTS BETWEEN EXISTING CLIENTS AND THE GERBER'S GRADUATES LINE OF READYTOEAT TODDLER FOOD GERBER HAS PLANS TO EXPAND THE LINE INTO FOOD CATEGORIES THAT COMPETE WITH BRANDS FROM OTHER GREY CLIENTS EXECUTIVES CLOSE TO THE SITUATION SAID GERBER DOESN'T HAVE IMMEDIATE PLANS TO HIRE A NEW FULLTIME AD AGENCY AND HAS ALREADY ASSIGNED ONE PROJECT TO A SMALL SHOP A GERBER SPOKESMAN COULDN'T BE REACHED FOR A COMMENT GREY WILL RETAIN THE GERBER ACCOUNT IN LATIN AMERICA AND THE AGENCY'S PUBLIC AFFAIRS AND LOBBYING UNIT APCO ALSO WILL CONTINUE TO WORK FOR GERBER THE LOSS FOLLOWS BY TWO DAYS GREY'S LOSS OF THE BIG QUAKER STATE MOTOROIL AD ACCOUNT WHICH LEFT THE AGENCY FOR CHIAT/DAY ACCOUNT MUSICLAND STORES CORP MINNEAPOLIS TAPPED WB DONER & CO DETROIT TO HANDLE THE CREATIVE PORTION OF ITS NATIONAL TV ADVERTISING FOR THE MUSICLAND AND SAM GOODY MUSIC CHAINS A NEW ACCOUNT THE CLIENT WILL CONTINUE TO HANDLE MEDIA PLANNING AND BUYING BILLINGS ARE ESTIMATED AT ABOUT 10 MILLION PEPSICO'S KENTUCKY FRIED CHICKEN TAPPED MINGO GROUP NEW YORK FOR ADVERTISING TO THE AFRICANAMERICAN MARKET AN ASSIGNMENT PREVIOUSLY AT EQUINOX GROUP CHICAGO ACQUISITION FALLONMCELLIGOTT MINNEAPOLIS SAID IT HAS ACQUIRED JOE DUFFY DESIGN INC A MINNEAPOLIS PACKAGEDESIGN SHOP TERMS WEREN'T DISCLOSED MR DUFFY WILL HAVE A SEAT ON THE AGENCY'S BOARD AN AGENCY SPOKESWOMAN SAID FALLON AND DUFFY SHARE AN IMPORTANT CLIENT COCACOLA CO FOR WHICH THEY WORK ON SPECIAL PROJECTS WHO'S NEWS SAATCHI & SAATCHI'S CME KHBB NAMED HOWARD LISZT TO THE POST OF PRESIDENT AND CHIEF OPERATING OFFICER A NEW POSITION PREVIOUSLY MR LISZT 47 YEARS OLD OVERSAW THE AGENCY'S CHICAGO AND MINNEAPOLIS OFFICES KETCHUM ADVERTISING A UNIT OF KETCHUM COMMUNICATIONS NAMED JAMES FICCO III 39YEAROLD EXECUTIVE VICE PRESIDENT TO THE POST OF PRESIDENT OF THE PITTSBURGH OFFICE SUCCEEDING JAN HEDQUIST WHO WAS NAMED VICE CHAIRMAN IN CHARGE OF AGENCY OPERATIONS AT THE PARENT COMPANY 9401070103 940107 QUARTERLY MUTUAL FUNDS REVIEW NOLOAD BUYERS LOAD UP THROUGH DISCOUNT BROKERS BY DEBORAH LOHSE STAFF REPORTER OF THE WALL STREET JOURNAL MORE AND MORE PEOPLE ARE BUYING MUTUAL FUNDS THROUGH DISCOUNT BROKERAGE FIRMS ATTRACTED BY CONVENIENCE AND THE FACT THAT THE BROKERS ARE ELIMINATING THEIR USUAL TRANSACTION FEES FOR A GROWING NUMBER OF FUNDS DISCOUNTERS SUCH AS CHARLES SCHWAB & CO FIDELITY DISCOUNT BROKERAGE AND JACK WHITE & CO OFFER A SELECTION OF SOME 200 FUNDS THAT CAN BE BOUGHT WITHOUT THE FEES THAT NORMALLY GET TACKED ON WHEN EVEN NOLOAD FUNDS ARE BOUGHT THROUGH A BROKER THE SAVINGS CAN BE ANYWHERE FROM 20 TO SEVERAL HUNDRED DOLLARS PER TRANSACTION DEPENDING ON THE BROKERAGE FIRM AND THE SIZE OF THE INVESTMENT MANY FINANCIAL ADVISERS SAY THE NOTRANSACTIONFEE SERVICES ARE A TREMENDOUS BOON FOR INVESTORS BUT THEY CAUTION THAT INVESTORS SHOULDN'T NECESSARILY LIMIT THEMSELVES TO FUNDS THAT ARE BEING SOLD THAT WAY ESPECIALLY IF THAT MEANS FORGOING DIVERSITY OR TOPQUALITY TOPPERFORMING FUNDS FROM GROUPS NOT ON A PARTICULAR BROKERAGE FIRM'S NOFEE LIST FOR YEARS DISCOUNT BROKERS SUCH AS SCHWAB HAVE BEEN A QUICK ONESTOP MARKETPLACE FOR INVESTORS TO BUY SHARES OF ANY OF A THOUSAND OR MORE MUTUAL FUNDS FROM HUNDREDS OF THE MAJOR MUTUALFUND COMPANIES FOR THE MOST PART THE FUNDS THEY SELL ARE NOLOAD FUNDS OR FUNDS WITH LOW UPFRONT SALES CHARGES THIS SERVICE ENABLES INVESTORS TO CONVENIENTLY ASSEMBLE A DIVERSIFIED PORTFOLIO OF FUNDS AND MAKES IT EASY TO SWITCH FROM ONE FUND COMPANY'S OFFERINGS TO ANOTHER'S WITHIN A SINGLE DAY IT CAN TAKE A WEEK OR LONGER TO SWITCH AMONG FUND COMPANIES IF AN INVESTOR BUYS DIRECTLY FROM FUND COMPANIES DISCOUNT BROKERAGE CUSTOMERS ALSO GET ONE CONSOLIDATED STATEMENT OUTLINING THE ACTIVITY IN EACH OF THEIR FUNDS RATHER THAN MULTIPLE MAILINGS FROM SEVERAL FUND GROUPS MORE RECENTLY SEVERAL DISCOUNTERS HAVE SWEETENED THE DEAL WITH NOTRANSACTIONFEE FUNDS IN LIEU OF CHARGING INVESTORS TO BUY AND SELL THE BROKERAGES CHARGE THE FUND GROUPS TO HAVE THEIR FUNDS ON A NOTRANSACTIONFEE LIST HORDES OF INVESTORS HAVE ENTHUSIASTICALLY EMBRACED THE CONCEPT IN ONLY 16 MONTHS SCHWAB HAS SEEN A WHOPPING 8 BILLION IN PURCHASES THROUGH ITS ONESOURCE PROGRAM WITH 250 MILLION MORE COMING IN EVERY WEEK ON AVERAGE MORE COMPANIES ARE SCRAMBLING TO MEET THE NEWFOUND DEMAND BULL & BEAR SECURITIES A NEW YORK DISCOUNT BROKER CURRENTLY OFFERS ONLY EIGHT BULL & BEAR FUNDS WITHOUT TRANSACTION FEES BUT BEGINNING EARLY THIS YEAR IT PLANS TO OFFER 75 NOTRANSACTIONFEE FUNDS FROM FIVE SEPARATE FUND GROUPS SAYS MARK WINMILL THE COMPANY'S PRESIDENT BUT DESPITE THE POPULARITY OF NOFEE INVESTING SOME ADVISERS SAY IT WOULD BE A MISTAKE TO OVERLOOK OTHER FUNDS SIMPLY BECAUSE BUYERS HAVE TO PAY A FEE TO BUY INTO THEM THROUGH THEIR FAVORITE DISCOUNTER PAUL SOLLI MANAGING DIRECTOR OF FINANCIAL DESIGN AN INVESTMENTADVISORY FIRM IN LARKSPUR CALIF SAYS INVESTORS SHOULD STILL SEEK OUT FUNDS THAT HAVE A LOW OVERALL EXPENSE RATIO WHILE A DISCOUNT BROKER'S TRANSACTION FEE IS A ONETIME HIT FOR A BUYANDHOLD INVESTOR ANNUAL MANAGEMENT FEES AND OTHER COSTS REFLECTED IN A FUND'S EXPENSE RATIO CAN DIMINISH YOUR OVERALL RETURN YEAR AFTER YEAR HE NOTES THAT TWO QUALITY FUND FAMILIES T ROWE PRICE ASSOCIATES AND VANGUARD GROUP HAVE UNUSUALLY LOW EXPENSE RATIOS ALTHOUGH THEY AREN'T OFFERED ON DISCOUNTERS' NOTRANSACTIONFEE MENUS THE FEEFREE PHENOMENON MAY TAKE ATTENTION AWAY FROM LOWEXPENSERATIO FUNDS MR SOLLI SAYS FOR INVESTORS LOOKING TO INVEST IN THE NEWLY FEEFREE FUNDS IT MIGHT PAY TO LOOK AT THE MENU AT MORE THAN ONE DISCOUNTER SOME FUNDS MAY BE SOLD WITHOUT TRANSACTION FEES AT ONE FIRM BUT NOT ANOTHER JACK WHITE IN SAN DIEGO OFFERS PIMCO FUNDS WHICH ARE NORMALLY SOLD ONLY TO LARGE INSTITUTIONAL INVESTORS FOR A 5000 MINIMUM INVESTMENT INDIVIDUALS CAN BUY THE PIMCO FUNDS OFFERED BY JACK WHITE WITHOUT TRADING FEES SCHWAB CUSTOMERS CAN ALSO BUY OR SELL PIMCO FUND SHARES BUT THEY HAVE TO PAY SCHWAB'S USUAL MUTUALFUND TRANSACTION FEES SIMILARLY ONLY FIDELITY'S DISCOUNT BROKERAGE FIRM SELLS FIDELITY FUNDS WITHOUT TRANSACTION FEES SOME DISCOUNT BROKERAGE FIRMS ALSO LIMIT INANDOUT TRADING INVESTORS WHO BUY FUNDS THROUGH FIDELITY'S FUNDSNETWORK FOR INSTANCE ARE ALLOWED TO SELL FUND SHARES THEY HAVE HELD LESS THAN SIX MONTHS ONLY FOUR TIMES EVERY 12 MONTHS BEYOND THAT LIMIT CUSTOMERS MUST PAY TRANSACTION FEES AS A RESULT ACTIVE FUND TRADERS MAY FIND THAT THE NOFEE SERVICE ISN'T A HUGE SAVINGS SOME BROKERAGES ALSO CHARGE TRANSACTION FEES IF THE AMOUNT AN INVESTOR REDEEMS IS TOO SMALL AT MURIEL SIEBERT & CO AND JACK WHITE CUSTOMERS WHO REDEEM SHARES VALUED AT LESS THAN 5000 PAY A TRANSACTION FEE EVEN ON NOTRANSACTIONFEE FUNDS EVEN IF INVESTORS HAVE TO PAY TRANSACTION FEES MANY INVESTMENT ADVISERS SAY DISCOUNT BROKERS ARE HARD TO BEAT NOT LEAST FOR THE CONSOLIDATED STATEMENTS THEY PROVIDE WITHOUT THIS FEATURE INVESTORS ARE OFTEN OVERWHELMED WITH PAPERWORK MR SOLLI SAYS AND IN SOME CASES INVESTORS HAVE ACCESS TO FUNDS THROUGH DISCOUNT BROKERS THAT THEY PROBABLY COULDN'T GET INTO ELSEWHERE AT SCHWAB INVESTORS CAN GET INTO THREE FUNDS FROM MUTUAL SERIES FUNDS THAT ARE GENERALLY CLOSED TO NEW INVESTORS AND FOR A 2500 MINIMUM INVESTMENT A SCHWAB INVESTOR COULD BUY SHARES OF ONE OF SIX MAS FUNDS THAT ARE NORMALLY AVAILABLE ONLY TO INSTITUTIONAL INVESTORS WITH A MILLION DOLLARS OR SO TO INVEST DISCOUNT BROKERAGE CUSTOMERS CAN ALSO BORROW AGAINST THEIR MUTUAL FUNDS THROUGH MARGIN LOANS WITH SUCH LOANS YOU CAN GENERALLY BORROW AS MUCH AS HALF OF YOUR ACCOUNT BALANCE AT RATES THAT ARE CURRENTLY AROUND 6675 INVESTORS CAN BORROW TO BUY ADDITIONAL SHARES OF THE FUND OR OTHER SECURITIES OR TO FREE UP LOWCOST CASH GERALD PERRITT EDITOR AND PUBLISHER OF THE MUTUAL FUND LETTER IN CHICAGO SAYS MOST INVESTORS SHOULD BE ABLE TO BUILD A SOLID PORTFOLIO THROUGH DISCOUNT BROKERS CAN YOU GET EVERY FUND NO BUT CAN YOU GET ENOUGH DIVERSITY THAT YOU CAN PUT TOGETHER A PORTFOLIO OF BETTERPERFORMING FUNDS YES 9401070102 940107 REVIEW & OUTLOOK EDITORIAL ASIDES ARIZONA'S CHOICE ARIZONA IS THE LATEST BATTLEGROUND OVER SCHOOL CHOICE CHILDREN ARE ACTUALLY BEING SENT HOME WITH FLYERS FROM THEIR TEACHERS OPPOSING THE ADDITION OF VOUCHERS TO AN EDUCATION REFORM BILL NOW BEFORE THE LEGISLATURE NONETHELESS GOVERNOR FIFE SYMINGTON AND LEGISLATIVE LEADERS BOTH FAVOR VOUCHERS THEY NOTE 2000 PARENTS OF SPECIALED KIDS ALREADY GET STATE VOUCHERS FOR USE IN PRIVATE SCHOOLS BUT TEACHERS' UNIONS VOW TO OPPOSE ANY LEGISLATOR WHO WANTS TO EXPAND THE PROGRAM TO OTHER PARENTS BEV HERMON CHAIRMAN OF THE SENATE EDUCATION COMMITTEE TOLD HER COLLEAGUES THIS WEEK SHE PHILOSOPHICALLY SUPPORTS VOUCHERS BUT WORRIES THEIR INCLUSION MIGHT DOOM THE ENTIRE EDUCATION REFORM BILL BUT VOUCHERS HAVE BECOME THE LITMUS TEST OF WHETHER AN EDUCATION BILL IS TRUE REFORM SEVERAL SENATORS PROMISE TO VOTE AGAINST THE BILL IF IT DOESN'T INCLUDE VOUCHERS TAXPAYERS ARE TIRED OF REFORM BILLS THAT DON'T HOLD SCHOOLS ACCOUNTABLE ADDING A MODEST VOUCHER PROGRAM IS THE CLEAREST WAY ANY LEGISLATURE CAN SIGNAL SCHOOL BUREAUCRATS THEY'RE PUTTING AN END TO SPENDINGASUSUAL 9401070101 940107 TECHNOLOGY PURITAN TO CLOSE PLANT TAKE OVERHAUL CHARGE AFTER AN FDA DECREE OVERLAND PARK KAN PURITANBENNETT CORP AFTER REACHING A CONSENT DECREE WITH THE FOOD AND DRUG ADMINISTRATION THAT TEMPORARILY STOPS ITS SALE OF PORTABLE VENTILATORS AND BLOODGAS MONITORING EQUIPMENT IN THE US SAID IT WILL CLOSE A BOULDER COLO PLANT THE COMPANY ALSO WILL TAKE A RESTRUCTURING CHARGE IN THE CURRENT FISCAL FOURTH QUARTER THE FDA REQUIRED THE TEMPORARY HALT OF SHIPMENTS UNTIL IT CAN DETERMINE IF PURITANBENNETT IS MEETING FEDERAL MEDICALDEVICE MANUFACTURING REGULATIONS AT CERTAIN PRODUCTION PLANTS PURITANBENNETT ALSO SAID IT PLANS TO SUBSTANTIALLY CURTAIL THE PRODUCTION OF BLOODGAS MONITORING DEVICES SALES OF WHICH HAVE BEEN DISAPPOINTING EMPLOYMENT IN THE DIVISION WILL BE CUT AND THE COMPANY WILL SEEK A PARTNER IN THAT BUSINESS THE COMPANY ONCE HAD HIGH HOPES FOR THE RELATIVELY NEW BUSINESS OF MAKING THE GASMONITORING DEVICES BUT ITS SALES IN THIS FIELD FOR THE YEAR ENDING THIS MONTH ONLY WILL BE BETWEEN 2 MILLION AND 5 MILLION ANALYSTS ESTIMATED SEPARATELY THE FDA CONCLUDED THAT A PURITANBENNETT HUMIDIFIER AND VENTILATOR PROBABLY WEREN'T TO BLAME FOR A FATAL FIRE SEPT 1 AT MAIMONIDES MEDICAL CENTER IN NEW YORK THE AGENCY HAD SAID THE FIRE WAS BELIEVED TO HAVE ORIGINATED IN ONE OF THE DEVICES 9401070100 940107 VISIONING' MISSIONS BECOMES ITS OWN MISSION BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL EVERY MARRIOTT HOTEL BOASTS A DIFFERENT ONE SIGNED BY THE BELLHOPS CLERKS AND MAIDS AVIS INC HAS 150 ALL HANGING ON A WALL AT CORPORATE HEADQUARTERS HUNDREDS OF WORKERS AT A HOUSTON METALWORKING COMPANY CARRY CREDITCARD SIZED VERSIONS IN THEIR SHIRTPOCKETS AND WALLETS THEY'RE MISSION STATEMENTS AND THEY'RE FAST BECOMING THE LATEST MANAGEMENT MANIA FACING TOUGHER COMPETITION AND TIGHTER BUDGETS MORE COMPANIES CITIES SCHOOLS AND EVEN INDIVIDUALS ARE TAKING STOCK OF WHO THEY ARE WHAT THEY DO AND HOW THEY PLAN TO DO IT BETTER THEN THEY'RE WRITING IT ALL DOWN THE RESULT A PROLIFERATION OF MISSIONS VISIONS VALUES AND THE LIKE EMBLAZONED ON ANNUAL REPORTS FACTORY WALLS AND COMPANIES HOPE THE PSYCHES OF THEIR WORKERS IT'S THE NEW GROUPTHINK IF WE STATE OUR GOALS WE'RE MORE LIKELY TO MEET THEM IT'S SORT OF LIKE THE TEN COMMANDMENTS SAYS ASHLEY E LEBLANC DIRECTOR OF NORTHERN PENOBSCOT TECH A VOCATIONAL HIGH SCHOOL IN LINCOLN MAINE WHICH RECENTLY DRAFTED MISSION AND VISION STATEMENTS MORE THAN 50 OF BIG COMPANIES HAVE MISSION STATEMENTS NOW TWICE AS MANY AS FIVE YEARS AGO SAYS MARY RABAUT A VICE PRESIDENT WITH GEMINI CONSULTING MORRISTOWN NJ CAVAS M GOBHAI A CAMBRIDGE MASS CONSULTANT SAYS COMPANIES ARE CLAMORING TO HIRE HIM AT 3000 A DAY TO HELP DIVINE THEIR VISIONS SUCH WORK NOW MAKES UP HALF HIS BUSINESS UP FROM 10 FIVE YEARS AGO LESS COSTLY APPROACHES ARE ALSO BOOMING JAN COOK REICHER A HOBOKEN NJ SMALLBUSINESS CONSULTANT GOT SO MANY CLIENT INQUIRIES ABOUT VISION STATEMENTS THAT SHE PUT TOGETHER A SIXPAGE GUIDE TO WRITING THEM THE GUIDE SUGGESTS SENTENCES LIKE WE ARE COMMITTED TO PROVIDING UNEQUALED QUALITY SHE SAYS SHE HAS DISTRIBUTED 1500 COPIES IN THE LAST YEAR AT 10 APIECE BUT MANY VISION STATEMENTS ARE UNINSPIRING DESPITE ALL THE EFFORT DEVOTED TO DEVELOPING THEM OFFICIALS AND FACULTY AT STANFORD'S BUSINESS SCHOOL SPENT MORE THAN A YEAR DEBATING THEIR MISSION AND STRATEGY BEFORE UNVEILING THE RESULTS IN NOVEMBER SURPRISE THE SCHOOL'S GOAL IS TO BE THE LEADING ACADEMIC SCHOOL OF MANAGEMENT IN THE WORLD IN TERMS OF ITS IMPACT ON MANAGEMENT THEORY THINKING PRACTICE AND PERFORMANCE BASICALLY THE SCHOOL'S GOAL BEFORE THE MISSION STATEMENT WAS WRITTEN YET ONE MISSION ISN'T ALWAYS ENOUGH BELL ATLANTIC CORP BOASTS A WHOLE PACKAGE DETAILING ITS BUSINESS PURPOSE VISION VALUES GOALS KNOWN AS BLUE CHIPS A FIVESTEP MANAGEMENT BY COMMITMENT PROCESS AND THE BELL ATLANTIC WAY SEVEN BEHAVIORS AND PROCESSES DESIGNED TO PROMPT CHANGES IN THE COMPANY'S CULTURE SOMERSET COUNTY NJ RECENTLY DEVELOPED MORE THAN 50 MISSION STATEMENTS ONE FOR THE COUNTY AND SEPARATE ONES FOR EACH ADMINISTRATIVE DEPARTMENT AND DIVISION BUT BEFORE DOING SO OFFICIALS SURVEYED 1400 COUNTY WORKERS TO GLEAN KEYWORDS AND PHRASES DESCRIBING WHAT THEY DO FOR COUNTY RESIDENTS MARRIOTT INTERNATIONAL INC WENT EVEN FURTHER AFTER DEVELOPING SEPARATE MISSION STATEMENTS FOR THE CORPORATION AND FOR ITS HOTEL DIVISION THE COMPANY IN 1992 ASKED EACH OF SOME 250 HOTELS TO CRAFT MISSION STATEMENTS OF THEIR OWN EACH HOTEL'S TOP MANAGERS WROTE A FIRST DRAFT THEN STAFF MEMBERS REFINED THE STATEMENTS DURING THREE DAYS OF VISIONING EXERCISES SITTING AT ROUND TABLES OF EIGHT OR 10 HOUSEKEEPERS COOKS DESK CLERKS AND OTHERS GRILLED MANAGERS INTERVIEWED CUSTOMERS AND TORE THROUGH THE DRAFTS PLASTERING WALLCHARTS WITH SUGGESTIONS FOR IMPROVEMENTS THOSE EVENTS WERE INCREDIBLY POWERFUL SAYS BOB NICHOLS A SENIOR VICE PRESIDENT FOR MARRIOTT'S HOTEL UNIT AND COSTLY TOO THE COMPANY ASSIGNED 70 PEOPLE TO TRAVEL FULLTIME TO OVERSEE THE MISSION SESSIONS AND IT MOVED STAFF FROM NEARBY HOTELS TO COVER FOR PARTICIPANTS WHEN SESSIONS TOOK PLACE NOT HAVING A MISSION THESE DAYS CAN MEAN TROUBLE IN ONE OF HIS FIRST PUBLIC STATEMENTS AFTER ASSUMING THE HELM AT INTERNATIONAL BUSINESS MACHINES CORP LOUIS V GERSTNER JR MADE HEADLINES AND STIRRED SHAREHOLDER CONCERN WHEN HE SAID THIS PAST SUMMER THAT THE LAST THING IBM NEEDS RIGHT NOW IS A VISION EXPLAINS A COMPANY SPOKESMAN WHAT LOU GERSTNER WAS SAYING WAS THAT A 25 OR 30WORD SENTENCE IS SIMPLISTIC AND NOT REALISTIC AND NOT HIS FIRST PRIORITY BUT SINCE THEN MR GERSTNER HAS DISTRIBUTED TO EMPLOYEES A LIST OF IBM PRINCIPLES CONSISTING OF EIGHT SENTENCES OF EIGHT TO 18 WORDS EACH THE PRINCIPLES PLEDGE A MINIMUM OF BUREAUCRACY AND SENSITIVITY TO STAFF AND OTHERS AND THE SPOKESMAN SAYS MR GERSTNER DOES PLAN TO ARTICULATE AN EXPLICIT VISION FOR THE COMPANY SOMETIME IN 1994 SOME MANAGEMENT EXPERTS SAY THAT MANY ORGANIZATIONS DEVOTE TOO MUCH TIME TO DEVELOPING MISSION STATEMENTS AND NOT ENOUGH TO MEETING THEM A LOT OF COMPANIES SEE THIS AS A QUICK FIX SAYS JAMES C SHAFFER A VICE PRESIDENT WITH CONSULTANTS TOWERS PERRIN THESE ORGANIZATIONS USE VISION AS A PUBLIC RELATIONS TOOL NOT AS SOMETHING TO CHANGE THE FUNDAMENTAL CULTURE MS RABAUT OF GEMINI CONSULTING CITES A COMMON PROBLEM EMPLOYEES WHO ARGUE WITH CUSTOMERS BLATANTLY IGNORING THEIR COMPANY'S MISSION PROCLAMATION THAT THE CUSTOMER IS ALWAYS RIGHT STILL EXPERTS CONTEND THAT COMPANIES CAN BENEFIT FROM A VISION IF IT IS IMPLEMENTED THE RIGHT WAY ONE STUDY SHOWS THAT 18 VISIONARY COMPANIES OUTPERFORMED A CONTROL GROUP IN THE STOCK MARKET BY MORE THAN SIX TO ONE MEASURED OVER THE PERIOD 1926 TO 1990 JERRY PORRAS PROFESSOR OF ORGANIZATIONAL BEHAVIOR AT STANFORD AND THE STUDY'S COAUTHOR SAYS VISIONARY COMPANIES STAND OUT PARTLY BY SETTING AMBITIOUS GOALS COMMUNICATING THEM TO EMPLOYEES AND FOLLOWING WHAT HE TERMS A CORE IDEOLOGY A PURPOSE BEYOND MAKING MONEY FOR INSTANCE HE CITES WALT DISNEY CO'S AIM OF MAKING PEOPLE HAPPY AS CRITICAL TO ITS SUCCESS YOU CAN SIT DOWN AND GENERATE A VISION IN A FEW DAYS BUT THAT ISN'T ENOUGH MR PORRAS SAYS YOU NEED TO ALIGN THE ORGANIZATION TO ACHIEVE IT ORGANIZATIONS MUST ALSO CHANGE THEIR MISSIONS AND VISIONS TO KEEP UP WITH THE TIMES MR PORRAS AND OTHER EXPERTS SAY MARS INC MODIFIED ITS FIVE PRINCIPLES LAST YEAR TO INCORPORATE REFERENCES TO THE CANDY COMPANY'S AMBITIONS ABROAD BELL ATLANTIC PLANS TO MODIFY ITS VISION TO BE THE WORLD'S BEST COMMUNICATIONS AND INFORMATION MANAGEMENT COMPANY TO INCORPORATE ENTERTAINMENT FOLLOWING ITS ACQUISITION OF CABLE GIANT TELECOMMUNICATIONS INC AND JOHNSON & JOHNSON THIS YEAR WILL CONVENE EXECUTIVES AND SURVEY ITS 80000 EMPLOYEES TO SOLICIT POSSIBLE CHANGES FOR ITS 50YEAROLD CREDO A REVIEW THAT TAKES PLACE EVERY FEW YEARS THE LAST CREDO CHANGE CAME IN 1989 WHEN THE COMPANY DECLARED ITS FIRST RESPONSIBILITY NOT JUST TO THE DOCTORS NURSES PATIENTS AND MOTHERS WHO USE ITS PRODUCTS BUT TO FATHERS TOO ANOTHER CHALLENGE IS EXPRESSING A MISSION OR VISION BRIEFLY BOOSTING THE CHANCE THAT EMPLOYEES WILL REMEMBER IT HEWLETTPACKARD CO TRIED THAT LAST YEAR AFTER CONCLUDING THAT ITS DETAILED STATEMENTS OF ORGANIZATIONAL VALUES CORPORATE OBJECTIVES AND STRATEGIES AND PRACTICES WERE NOT IMMEDIATELY SUCCINCT AND QUITE WORDY SAYS JOHN R EATON THE COMPANY'S BUSINESS DEVELOPMENT MANAGER THE SOLUTION A NEW ONELINE PURPOSE STATEMENT JUST 19 WORDS LONG BUT THE COMPANY COULDN'T STOP THERE FOLLOWING THE PURPOSE IS A FIVELINE EXPLANATION HEADLINED WHAT DOES IT ALL MEAN 9401070099 940107 FINANCING BUSINESS GULF CANADA RESOURCES LTD GULF CANADA RESOURCES LTD A CALGARY ALBERTA OIL PRODUCER SAID IT PLANS TO ISSUE 300 MILLION OF SENIOR SUBORDINATED DEBENTURES IN THE US GULF CANADA SAID IT FILED A PRELIMINARY PROSPECTUS SUPPLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AND THE ALBERTA SECURITIES COMMISSION FOR THE ISSUE WHICH IT SAID IS TO BE UNDERWITTEN BY SALOMON BROTHERS INC AND MORGAN STANLEY & CO GULF WHICH IS 70OWNED BY CREDITORS OF THE REICHMANN FAMILY'S BANKRUPT OLYMPIA & YORK DEVELOPMENTS LTD SAID IT WILL USE THE PROCEEDS TO PREPAY PART OF ITS SENIOR BANK DEBT DUE IN 1996 OLYMPIA & YORK DEVELOPMENTS LTD WAS REORGANIZED LAST YEAR UNDER PROTECTION OF A CANADIAN LAW SIMILAR TO CHAPTER 11 OF THE US BANKRUPTCY CODE AN ITEM IN THE FINANCING BUSINESS COLUMN FRIDAY INCORRECTLY DESCRIBED THE COMPANY AS BANKRUPT 9401070098 940107 LETTERS TO THE EDITOR A TACTICAL CHANGE IN CULTURE WARS' FOR YEARS OR MAYBE IT JUST SEEMS LIKE YEARS YOUR EDITORIALS HAVE GROUSED ABOUT AMERICA'S CRUMMY ARTISTS THE BLIGHT OF GANGSTA RAP MURPHY BROWN ETC UNDER THE RUBRIC OF SOMETHING YOU'VE BEEN PLEASED TO CALL THE CULTURE WARS YET IN YOUR DEC 16 EDITORIAL CAPTIVE CULTURE YOU SNEER AT GATT NEGOTIATORS WHO FEAR THAT AMERICAN FILMS AND MUSIC INJECT AN ALIEN VIRUS INTO THE PURITY OF EUROPEAN LIFE THIS SUDDEN CONVERSION ON YOUR PART SEEMS STRANGE YOU EVEN CITE AS COUNTERVAILING EVIDENCE OF EUROPE AND AMERICA'S ROBUST COMMON CULTURAL TRADITION THE INFLUENCE OF AMERICAN R&B ON JOHN LENNON WHO GIVEN HIS LIFELONG COMMITMENT TO RADICAL CAUSES IS A STRANGE CHAMPION FOR CONSERVATIVE CULTUREWARRIORS SUCH AS YOURSELVES ALSO IN AN ACCOMPANYING ASIDE TV VIOLENCE YOU SCOFF AT A TASK FORCE'S REQUEST THAT VIOLENCE BE KEPT OFF PRIMETIME TV SUGGESTING THAT A LOT OF PEOPLE WHO BEAT THEIR BRAINS OUT ALL DAY TRADING DERIVATIVES AND SUCH LIKE TO UNWIND FROM 8 PM ONWARD WITH OLD FRIENDS LIKE DIRTY HARRY' THE GODFATHER' OR BRUCE LEE MAY ONE ASSUME FROM THIS THAT IF YOUNG AFRICANAMERICANS WISH TO UNWIND AFTER A LONG DAY WITH OLD FRIENDS SUCH AS SNOOP DOGGY DOGG OR ICET THE NEW POPCULTUREFRIENDLY JOURNAL WILL BE SIMILARLY SUPPORTIVE 9401070097 940107 LETTERS TO THE EDITOR HOT COMMODITIES YOUR DEC 6 PAGEONE ARTICLE RED MERCURY IS HOT ALLEGES THAT RED MERCURY IS USED FOR NUCLEAR PURPOSES IN MY DISCUSSION WITH YOUR REPORTER I MADE THE ANALOGY THAT ETHANOL IS USED IN BRAZIL AS A FUEL BUT CAN ALSO BE USED TO MAKE EXPLOSIVE MATERIALS IN OTHER WORDS THE POTENTIAL TO CONVERT INNOCUOUS MATERIALS INTO DANGEROUS ONES IS A MODERNDAY REALITY THAT THE WORLD MUST FACE ADDITIONALLY COUNTRIES PRODUCING IMPORTING AND EXPORTING SUCH COMMODITIES IMPOSE STRICT REGULATIONS ON THEIR COMMERCE THEREFORE RED MERCURY WHICH IS NOT RADIOACTIVE POSES LESS OF A THREAT THAN MANY OTHER SUBSTANCES SOLD ON THE WORLD MARKET 9401070096 940107 NOTABLE & QUOTABLE IN THE DEC 27JAN 3 NEW YORK OBSERVER COLUMNIST RICHARD BROOKHISER COMMENTS ON THE LONG ISLAND RAIL ROAD'S RECENT MASS MURDER IF EVER THERE WAS A HATE CRIMINAL COLIN FERGUSON IS IT HE HATED WHITES ASIANS AND UNCLE TOM NEGROES WHO DID THEIR BIDDING HIS WIFE DIVORCED HIM BECAUSE OF THE VIRULENCE OF HIS RACIAL VIEWS HIS LANDLORD WAS ABOUT TO EVICT HIM FOR THE SAME REASON HE HAD BEEN ARRESTED BY THE TRANSIT POLICE AS IT HAPPENS FOR A RACIAL TIFF AFTER HIS MURDEROUS DEED WAS DONE HIS POCKETS WERE FOUND STUFFED WITH RACIST RANTINGS THE USUAL WATCHDOGS OF HATE CRIME HAVE FALLEN STRANGELY SILENT IN THIS CASE HOWEVER FOR THE OBVIOUS REASON THAT COLIN FERGUSON'S HATRED WAS NOT THE KIND OF HATRED THEY EXPECTED TO BE PUNISHING THE CATEGORY OF THE HATE CRIME WAS MEANT TO DRAW ATTENTION TO THE LEVEL OF WHITE RACISM IN AMERICA 9401070095 940107 WORLD STOCK MARKETS HONG KONG STOCKS PLUNGE SOME SEE FURTHER DECLINES BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL THE HONG KONG STOCK MARKET ONE OF THE WORLD'S HIGHEST FLYING PLUNGED 65 THURSDAY AND LEFT MANY INVESTORS WONDERING WHETHER THE DECLINE SIGNALED THE END OF A LONG BULL RUN THAT HAS BEEN FUELED BY CHINA'S BOOMING ECONOMY SEVERAL MONEY MANAGERS FORECAST FURTHER DECLINES ADDING THAT IT WOULD TAKE AN EXTENDED RETREAT TO CONVINCE THEM TO BUY MORE HONG KONG STOCKS AND EVEN THOSE WHO FELT PRICES WILL RECOVER QUICKLY WARNED THAT INVESTORS SHOULD READ THURSDAY'S EVENTS AS AN OMEN THAT THE EASY RIDE UPWARD IN HONG KONG SHARES IS OVER THE BENCHMARK HANG SENG INDEX FELL 79343 POINTS TO 1137450 FROM 1216793 ON WEDNESDAY REGISTERING ITS BIGGEST SINGLEDAY POINT DROP SINCE THE OCTOBER 1987 GLOBAL STOCKMARKET CRASH WHAT WE SAW IN HONG KONG TODAY WAS INEVITABLE GIVEN THE PACE AND EXTENT OF THE RECENT RISE IN THE MARKET SAID HEATHER MANNERS A DIRECTOR AT HENDERSON INVESTMENT MANAGEMENT IN LONDON REGARDED AS THE BEST WAY TO PLAY CHINA'S FAST ECONOMIC GROWTH THE HONG KONG STOCK MARKET SOARED 116 LAST YEAR 30 IN DECEMBER ALONE FERMIN DA COSTA GOMEZ A PORTFOLIO MANAGER AT PACIFIC ASSET MANAGEMENT NV IN AMSTERDAM COMPARED THE MARKET TO A JET FIGHTER THAT KEPT GOING STRAIGHT UP UNTIL IT STALLED AND THEN BEGAN TO FALL HE SAID HE WOULDN'T BE SURPRISED IF THE HONG KONG STOCK MARKET FELL ANOTHER 25 NOTING THAT THE BRITISHCHINESE CONFLICT OVER INCREASED DEMOCRACY FOR HONG KONG'S RESIDENTS REMAINS UNRESOLVED MR DA COSTA GOMEZ SAID THERE IS A DEFINITE RISK FACTOR ASSIGNED TO HONG KONG WHICH DOESN'T JUSTIFY IT TRADING AT CURRENT LEVELS IT NEEDS TO TAKE A BREATHER MONEY MANAGERS AND BROKERS HAD MANY EXPLANATIONS FOR THE PLUNGE ALTHOUGH MOST WERE SHOCKED BY ITS SHARPNESS BETWEEN CHRISTMAS AND THE NEW YEAR THE FLOOD OF MONEY COMING IN FROM JAPANESE INVESTORS TURNED INTO A TORRENT SAID WILLIAM MURRAY HEAD OF SOUTHEAST ASIAN EQUITY SALES AT BARING SECURITIES LTD IN LONDON THAT MONEY HE ADDED HELPED DRIVE THE MARKET UP 6 AT ONE POINT ON THE FIRST DAY OF TRADING IN 1994 BUT HE SAID THAT IN THE LAST 24 HOURS IT APPEARS THIS BUYING HAS RUN OUT OF STEAM JAPANESE INVESTORS WEREN'T THE ONLY ONES TO CHANGE THEIR MINDS COMING OFF EARLY 1994 STRATEGY MEETINGS EUROPEAN FUND MANAGERS DECIDED THE MARKET WAS TOO PRICEY FOR COMFORT AND THAT THEY WERE NO LONGER WILLING TO COMMIT NEW MONEY SAID MR MURRAY CONTRIBUTING TO THE CUTANDRUN MOOD WERE JAPAN'S NOMURA SECURITIES CO WHICH REDUCED THE HONG KONG MARKET'S WEIGHTING IN MODEL PORTFOLIOS MERRILL LYNCH & CO AND MORGAN STANLEY & CO MADE SIMILAR MOVES LAST FALL MR MURRAY SAID HONG KONG SHARES WERE ALSO HURT BY UNCONFIRMED ACCOUNTS OF SOCIAL UNREST IN CHINA AND REPORTS SUGGESTING THAT CHINA WAS IMPOSING TAX MEASURES THAT WOULD AFFECT THE INTERESTS OF HONG KONG PROPERTY INVESTORS IN CHINA MR DA COSTA GOMEZ OF PACIFIC ASSET MANAGEMENT SAID THAT ANOTHER IMPORTANT FACTOR WAS A DECISION BY HONG KONG BANKS THURSDAY TO REDUCE THE AMOUNT THEY WOULD LEND FOR PURCHASERS OF RESIDENTIAL PROPERTY TO 60 OF THE SALE PRICE FROM 70 THE PROPERTY MARKET IS THE MOST IMPORTANT SECTOR IN HONG KONG HE SAID IF THE PROPERTY SECTOR COUGHS THE MARKET AS A WHOLE CATCHES A COLD WHATEVER THE REASONS MS MANNERS OF HENDERSON SAID IN HONG KONG THERE'S A LEMMING INSTINCT IF THE MARKET'S DUE FOR A CORRECTION AND STARTS FALLING PEOPLE FIND THE EXCUSES TO JUSTIFY THEIR SALES MANY MONEY MANAGERS PREDICTED THAT HONG KONG STOCKS HAVE STILL FURTHER TO FALL WE'VE BEEN CUTTING BACK IN HONG KONG IT ROSE TOO FAR TOO FAST SAID THOMAS TULL A PRINCIPAL AT GULFSTREAM GLOBAL INVESTORS IN DALLAS HE SAID THAT AT CURRENT PRICE LEVELS THE BRITISH COLONY'S SHARES WERE SUSCEPTIBLE TO ANY PROBLEM WITH CHINA'S MOSTFAVOREDNATION TRADING STATUS ANY PROBLEM WITH INFLATION IN CHINA ANY INDICATION THAT CHINESE EXPORTS CAN BE HURT IN ANY WAY THAT WOULD IMPLY A HICCUP EFFECT ON HONG KONG AND PRECIPITATE A DRAG ON PRIVATE CONSUMPTION THE MARKET WOULD HAVE TO FALL TO 9000 BEFORE WE WOULD BEGIN THINKING ABOUT PUTTING MONEY BACK INTO THE HONG KONG STOCK MARKET SAID MR TULL MORE SANGUINE THAN OTHERS MR MURRAY OF BARING SECURITIES PREDICTED THE HANG SENG INDEX COULD FALL TO 10500 AT THAT LEVEL THE HONG KONG STOCK MARKET WOULD BE SELLING AT 145 TIMES 1994 EARNINGS WHICH PUTS IT BACK INTO THE VALUE BRACKETS THAT MOST OF OUR CLIENTS WOULD FEEL MORE COMFORTABLE WITH HE SAID MR MURRAY SAID HIS FIRM HADN'T CHANGED ITS FORECAST OF 14500 FOR THE HANG SENG INDEX WHICH WAS MADE EARLY IN DECEMBER WHEN THE INDEX STOOD AT ABOUT 9300 THAT WOULD MEAN A 27 RISE ABOVE CURRENT LEVELS LONDON SHARES CHALKED UP STRONG GAINS YESTERDAY FINISHING NEAR THE DAY'S HIGHS ON OPTIMISM ABOUT THE ECONOMY FRANKFURT STOCKS CONTINUED TO CONSOLIDATE THOUGH THE MARKET HAD LITTLE REACTION WHEN THE GERMAN BUNDESBANK THE CENTRAL BANK LEFT ITS KEY INTEREST RATES UNCHANGED TOKYO STOCKS ADVANCED HELPED BY ARBITRAGE BUYING AND CONTINUED STRENGTH FOR EXPORTERS' SHARES PROMPTED BY THE YEN'S WEAKENING AGAINST THE DOLLAR WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11165 DOWN 009 REFLECTING LOWER ASIA/PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS AIRFREIGHT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15053 UP 273 OR 185 WITH PITTSTON SERVICES OF THE US RISING 37 IN ITS LOCAL CURRENCY CASINO STOCKS TRAILED AT 22798 DOWN 950 OR 4 WITH GENTING OF MALAYSIA SLIDING 11 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 238 POINTS TO 34030 NEAR THE INTRADAY HIGH OF 34077 THE FT 30STOCK INDEX RALLIED 343 POINTS OR 14 TO 25805 VOLUME WAS 103 BILLION SHARES COMPARED WITH 908 MILLION SHARES A DAY EARLIER PRICES OPENED SHARPLY LOWER WITH THE FT 100 DROPPING 239 POINTS TO THE SESSION'S LOW IN REACTION TO THE HONG KONG MARKET'S PLUNGE BUT LONDON'S DESCENT WAS QUICKLY REVERSED FOLLOWING A RECOVERY IN THE STOCKINDEXFUTURES MARKET AND HEALTHY BUYING BY BRITISH AND FOREIGN INSTITUTIONAL INVESTORS THE MARKET ALSO GATHERED STRENGTH FROM OPTIMISM ABOUT FURTHER CUTS IN BRITISH BASELENDING RATES A RESILIENT EARLY PERFORMANCE ON WALL STREET AFTER US BONDMARKET DECLINES AND SPECULATION ABOUT BRITISH INSURANCESECTOR TAKEOVERS IN FRANKFURT THOUGH GERMANY'S RATE MAINTENANCE HAD LITTLE EFFECT THE DAX 30SHARE INDEX DROPPED 1319 POINTS TO 222022 AFTER LOSING 20 POINTS A DAY EARLIER THIS WEEK'S LOSS IS 21 THE MARKET DECLINED ON PROFITTAKING LINKED TO EXPECTATIONS OF FURTHER PRICE DROPS IN PARIS SHARES CLIMBED 11 AS TRADERS SHRUGGED OFF THE BUNDESBANK'S DECISION ON RATES AND INSTITUTIONAL INVESTORS LED A RALLY THE GAINS WERE HELPED BY A POSITIVE US REPORT ON EMPLOYMENT FOLLOWING TWO DAYS OF PROFITTAKING BARGAIN HUNTERS MOVED IN AMID HOPES FOR LOWER EUROPEAN INTEREST RATES INDEED THE BELGIAN AND DANISH CENTRAL BANKS CUT KEY RATES YESTERDAY IN BRUSSELS STOCKS ROSE TO ANOTHER RECORD THE BELGIAN CENTRAL BANK'S MONEYMARKET RATE CUT CAME AFTER TRADING ENDED BUT HAD BEEN WIDELY ANTICIPATED BY THE BOND AND EQUITIES MARKETS HELPING TO BOOST MOST ISSUES IN ZURICH SHARES ROSE IN ACTIVE TRADING FOCUSED ON BANKING CHEMICAL AND FOOD ISSUES FOREIGN INVESTORS ESPECIALLY FROM GERMANY SNAPPED UP SHARES AND WERE JOINED BY SWISS INSTITUTIONAL INVESTORS BROADENING THE GAINS IN MEXICO CITY THE IPC INDEX CLIMBED 1 TO YET ANOTHER RECORD LED BY FOREIGN BUYERS THE MARKET WAS ENCOURAGED WHEN A PEASANT UPRISING TURNED DORMANT WHICH COULD SPUR GOVERNMENT SPENDING IN POOR AREAS PRIOR TO THE AUGUST PRESIDENTIAL ELECTIONS BOOSTING THE ECONOMY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH JUMPED 41374 POINTS WEDNESDAY ROSE 9851 TO 1788199 ON FRIDAY THE NIKKEI INDEX ROSE 6240 POINTS TO CLOSE THE MORNING SESSION AT 1794439 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES UP FROM 2906 MILLION SHARES A DAY EARLIER GAINERS OUTNUMBERED LOSERS 626422 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 1688 POINTS WEDNESDAY ROSE 642 TO 146927 THE NIKKEI COULDN'T OVERCOME SELLING PRESSURE ABOVE 18000 WHICH IT TOPPED FOR THE FIRST TIME SINCE DEC 20 AND EXPORTER ISSUES WERE KNOCKED BACK ON LATE PROFITTAKING AFTER THE DOLLAR RETREATED IN CURRENCY DEALINGS IN SYDNEY AFTER LANGUISHING IN THE RED FOR MUCH OF THE SESSION SHARE PRICES EDGED UP TO ANOTHER SIXYEAR HIGH FOLLOWING A RALLY IN THE STOCKINDEX MARCH FUTURES CONTRACT OVERSEAS BUYERS CONTINUED TO CONTRIBUTE TO THE MARKET'S RISE IN SINGAPORE STOCKS SANK 18 AFTER DROPPING 16 WEDNESDAY BLUE CHIPS AND FOREIGNHELD SHARES LED LOSERS WITH SOME ISSUES GIVING UP MORE THAN 10 ON SOME PANIC SELLING AMID CONCERNS ABOUT ANY GOVERNMENT REACTION TO AN OVERHEATED MARKET THE BROAD DECLINE WAS BLAMED ON DROPS IN MALAYSIAN STOCKS IN KUALA LUMPUR STOCKS PLUNGED 5 ON PROFITTAKING AFTER A RECENT RALLY IN MANILA EQUITIES JUMPED 19 HELPED BY BARGAINHUNTING AFTER THE MARKET'S 23 SKID A DAY EARLIER IN BANGKOK STOCKS SLUMPED 24 IN ACTIVE CHOPPY TRADING MARKING THE SECOND CONSECUTIVE DROP FOLLOWING A STREAK OF EIGHT RECORD HIGHS IN A ROW THAT ENDED TUESDAY 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 9401070094 940107 QUARTERLY MUTUAL FUNDS REVIEW ECONOMY'S STRENGTH WILL TUG AT BOND FUNDS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL A REVIVING ECONOMY DICTATED THE FOURTHQUARTER BONDMARKET RANKINGS THE FIRST QUARTER PROMISES MORE OF THE SAME HIGHYIELD JUNKBOND FUNDS ARE LIKELY TO OUTPERFORM MOST OTHER BOND SECTORS ONCE AGAIN THIS QUARTER BUT PROBABLY WITH LOWER TOTAL RETURNS THAN IN THE RECENT PAST RETURNS MAY REMAIN UNDER PRESSURE FOR LONGTERM US TREASURY BONDS ANALYSTS HAVE HIGH HOPES FOR BONDS FROM FOREIGN NATIONS ESPECIALLY DEVELOPING NATIONS A PARTICULARLY RISKY BUT REWARDING SECTOR SO FAR THERE WILL BE A GREAT EQUALIZATION OF TOTAL RETURNS IN 1994 SAYS IAN A MACKINNON HEAD OF FIXEDINCOME INVESTING AT VANGUARD GROUP JUNKBOND FUNDS WHICH BOOKED RETURNS OF 475 IN THE FOURTH QUARTER ACCORDING TO PRELIMINARY DATA FROM LIPPER ANALYTICAL SERVICES INC ARE LIKELY TO DO WELL AGAIN BECAUSE THEY BEHAVE A LOT LIKE STOCKS THEY WILL BENEFIT FROM IMPROVEMENT IN THE ECONOMY SAYS MR MACKINNON IT WILL SPELL GENERALIZED RELIEF FOR HIGHYIELD CREDITS ALTHOUGH SOME MAY STUMBLE HE ADDS HE LIKES JUNK BONDS FROM INDUSTRIAL BANKING OR OTHER FINANCIAL CONCERNS EVEN IF INTEREST RATES RISE MODERATELY THIS YEAR JUNK BONDS WOULD STILL BE A GOOD BET SAYS MR MACKINNON THAT'S BECAUSE THE HIGHYIELD SECTOR CONSISTS MAINLY OF INTERMEDIATETERM BONDS AND WILL HAVE SOME PROTECTION AGAINST MODERATELY RISING RATES MR MACKINNON SAYS THAT THE ENVIRONMENT WILL BE GOOD FOR FUND MANAGERS INTERESTED IN BOOSTING THEIR RETURNS BY BUYING LOWERGRADE CORPORATE JUNK THE JUNKBOND MARKET WILL CONTINUE TO BE ATTRACTIVE SAYS GARY COBURN HEAD OF FIXEDINCOME INVESTMENTS AT PUTNAM INVESTMENTS BUT YOU PROBABLY WON'T SEE THE DOUBLEDIGIT RETURNS THAT YOU DID IN 1993 JUNKBOND FUNDS HAD TOTAL RETURNS OF 1950 IN 1993 ACCORDING TO LIPPER TOTAL RETURNS COMBINE THE EFFECT OF PRICE CHANGES AND INCOME THERE'S NO SIGN OF RECESSION AND THAT'S TYPICALLY THE TIME WHEN HIGHYIELD BONDS UNDERPERFORM SAYS DON KELLER A SENIOR PORTFOLIO MANAGER AT KEYSTONE CUSTODIAN FUNDS INC A UNIT OF KEYSTONE GROUP INC IF YOU SEE JUNKBOND FUNDS PROMISING TO MATCH LAST YEAR'S TOTAL RETURNS BE LEERY THE EASIEST WAY TO DO IT SAY THE EXPERTS IS BY LOADING UP ON RISKIER BONDS FOR INVESTORS IN FUNDS SPECIALIZING IN LONGTERM SECURITIES ESPECIALLY TREASURYS THE FOURTH QUARTER MAY BE A HARBINGER OVER THE WHOLE YEAR FUNDS SPECIALIZING IN LONGTERM US TREASURYS AND ZEROCOUPON BONDS WHICH PAY NO INTEREST DID VERY WELL WITH RETURNS OF 1333 AND 2076 RESPECTIVELY BUT IN THE FOURTH QUARTER THEY LOST 123 AND 107 RESPECTIVELY THE DAYS OF BIG RETURNS IN TREASURYS ARE CLEARLY BEHIND US SAYS MR COBURN OF PUTNAM INVESTORS SHOULD BE BUILDING EXPECTATIONS FOR SINGLEDIGIT RETURNS IN THE TREASURY MARKET HE SAYS PERHAPS EVEN LESS THAN THE GIVEN COUPONS FOR SOME SHORTTERM SECURITIES LOW RETURNS OR EVEN LOSSES ARE LIKELY THIS QUARTER FOR FUNDS SPECIALIZING IN SHORTERTERM TREASURYS SAY FUND MANAGERS THAT'S BECAUSE THEY BELIEVE ALL INTEREST RATES WILL RISE THIS YEAR BUT SHORTTERM RATES WILL BE RISING FASTER THAN LONGTERM BOND YIELDS NOTE PRICES FALL WHENEVER RATES RISE ERODING INVESTORS' TOTAL RETURN WE EXPECT A RISE IN RATES WITH THE 30YEAR BOND YIELD ENDING ABOUT 1/2 PERCENTAGE POINT FROM WHERE WE ARE NOW OR ABOUT 685 SAYS MR MACKINNON OF VANGUARD SHORTTERM RATES COULD RISE AS MUCH AS A FULL PERCENTAGE POINT HE SAYS WHICH WOULD PUT THE THREEMONTH TREASURY BILL'S COUPON EQUIVALENT YIELD AT ABOUT 414 A STRONGER ECONOMY AND MODERATE RATE INCREASES MAY MEAN LOWER RETURNS FOR MANY BOND FUNDS BUT NOT NECESSARILY NEGATIVE RETURNS THAT'S BECAUSE INFLATION THE BANE OF BOND INVESTORS IS LIKELY TO REMAIN SUBDUED BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE BUYING POWER OF A FIXED RATE OF RETURN THE BIG CAVEAT IS INFLATION SAYS MR COBURN OF PUTNAM IT WILL BE PRETTY WELL SUBDUED IN 1994 AND THAT WILL PROVIDE A BIT OF A CUSHION TO BOND INVESTMENTS WITH LONG MATURITIES IF YOU WANT TO EVEN COME CLOSE TO 1993'S RETURNS YOU MUST BE WILLING TO TAKE ON GREATER RISKS ANALYSTS SAY THE BEST PLACE FOR THAT SAY THE MANAGERS ARE FUNDS THAT SPECIALIZE IN FOREIGN SECURITIES GLOBAL BOND FUNDS HAD TOTAL RETURNS OF 366 IN THE FOURTH QUARTER JUST BEHIND JUNKBOND FUNDS AND TOTAL RETURNS OF 1761 OVER THE WHOLE YEAR FOR FUNDS SPECIALIZING IN BONDS OF INDUSTRIALIZED NATIONS RETURNS ARE LIKELY TO BE LOWER BUT STILL IN THE HIGH SINGLE DIGITS SAY FUND MANAGERS FOR FUNDS SPECIALIZING IN BONDS OF DEVELOPING NATIONS RETURNS COULD BE EVEN GREATER ESPECIALLY POPULAR AMONG FUND MANAGERS ARE MEXICO ARGENTINA AND VENEZUELA BUT THE RISKS ARE LARGE CURRENCY SHIFTS CAN WIPE OUT ALL RETURNS EVEN WHEN A MARKET DOES WELL AND THERE ARE POLITICAL RISKS SO FAR THE REBELLION IN SOUTHERN MEXICO HASN'T MADE MUCH OF A DENT IN THAT NATION'S BOND MARKETS BUT WHO KNOWS WHAT OTHER SURPRISES LURK IT'S CLEARLY AN ATTRACTIVE AREA BUT NOT FOR WIDOWS AND ORPHANS SAYS MR COBURN TWO OTHER GOOD SECTORS TO BET ON ANALYSTS SAY ARE MUNICIPAL BOND FUNDS AND MORTAGEBACKED BOND FUNDS TAXEXEMPT MUNICIPAL BONDS HAVE BECOME THE POSTER CHILD OF THE BOND MARKET THESE DAYS AS MANAGERS EXTOL THE ADVANTAGES OF MINIMIZING DAMAGE FROM HIGHER TAX RATES BUT THERE IS SOME TRUTH TO ALL THE HYPE FOR ONE THING THERE WILL BE FEWER MUNICIPAL BONDS SOLD THIS YEAR SAY FUND MANAGERS SO IF SUPPLY DROPS AND DEMAND RISES THEY THEORIZE RETURNS WILL BE SMASHING PEOPLE WILL START LOOKING AT WHERE THEIR TAX WITHHOLDING IS AND FINDING MORE REASONS FOR OWNING MORE MUNICIPAL BONDS SAYS MR MACKINNON ONCE AGAIN FUND MANAGERS SAY THE WORST IS OVER WITH MORTGAGEBACKED BOND FUNDS AT LEAST TWO TIMES IN THE PAST TWO YEARS THE SAGES OF WALL STREET BEGAN PUSHING MORTGAGEBACKED SECURITIES BY CLAIMING THAT INTEREST RATES HAD BOTTOMED THEY WERE WRONG BOTH TIMES FUNDS SPECIALIZING IN GOVERNMENT NATIONAL MORTGAGE ASSOCIATION BONDS WERE PUMMELED IN THE FOURTH QUARTER AND POSTED TOTAL RETURNS OF JUST 036 WHILE THEY HAD TOTAL RETURNS OF 644 FOR THE ENTIRE YEAR DESPITE THE RELATIVELY LOW RETURNS LAST YEAR AND BEING BURNED TWICE ALREADY FUND MANAGERS SAY IT MIGHT BE TIME TO CONSIDER MORTGAGES AGAIN WITH INTEREST RATES RISING A BIT THE LOGIC GOES FEWER HOMEOWNERS WILL BE REFINANCING THEIR MORTGAGES THIS IS GOOD NEWS FOR THE FUNDS THAT INVEST IN SECURITIES BACKED BY THE MORTGAGES BUT NOT EVERYONE IS EBULLIENT THERE MAY BE RELIEF FOR THE MORTGAGE SECTOR THIS YEAR SAYS MR MACKINNON BUT I'M NOT SAYING THAT TODAY YOU SHOULD GO OUT AND BUY LOTS OF MORTGAGE SECURITIES ACCORDING TO MR MACKINNON THE WORST OF MORTGAGE REFINANCING IS EITHER NEARLY UPON US OR PAST US 9401070093 940107 BONDHOLDERS OF MACY COULD GET HURT IF SENIOR CREDITORS TRY CRAM DOWN' BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BONDHOLDERS OF RH MACY & CO COULD END UP ON THE LOSING END OF THE RETAILER'S REORGANIZATION IF SENIOR CREDITORS ATTEMPT A CRAM DOWN A CRAM DOWN IS AN OFTENTHREATENED BUT LITTLEUSED MANEUVER IN BANKRUPTCY WORKOUTS SO CALLED BECAUSE IT CRAMS AN UNPALATABLE REORGANIZATION PLAN DOWN THE THROATS OF CREDITORS WITH THE LEAST AMOUNT OF CLOUT IN THIS CASE THE BONDHOLDERS WHO ARE THE MOST JUNIOR AMONG THE CREDITORS PRESSING CLAIMS ON MACY MACY HAS BEEN MIRED IN CHAPTER 11 BANKRUPTCYCOURT PROCEEDINGS SINCE JANUARY 1992 MACY'S MANAGEMENT HAS THE EXCLUSIVE RIGHT TO PUT FORTH A PLAN OF REORGANIZATION BUT RIVAL FEDERATED DEPARTMENT STORES INC IS NOW A CREDITOR AND SAYS IT WANTS TO MERGE THE TWO COMPANIES MACY'S CREDITORS INCLUDING THE BANKS THAT HOLD SENIOR DEBT SECURED BY THE RETAILER'S STORES AND TRADEMARKS AND INVESTORS WHO OWN MACY'S UNSECURED BONDS MUST APPROVE ANY PLAN OF REORGANIZATION BEFORE THE COMPANY CAN EMERGE FROM BANKRUPTCY COURT CREDITORS' CLAIMS TOTAL ABOUT 43 BILLION EXCLUDING INTEREST ORDINARILY WHEN A COMPANY EMERGES FROM BANKRUPTCY COURT SENIOR CREDITORS' CLAIMS ARE PAID OFF AT FACE VALUE PLUS ACCRUED INTEREST JUNIOR CREDITORS MEANWHILE GET THE BULK OF THE STOCK DISTRIBUTED BY THE REORGANIZED COMPANY WHICH EFFECTIVELY MAKES THEM THE CONTROLLING SHAREHOLDERS JUNIOR CREDITORS IN MACY'S CASE ARE INVESTORS IN ITS PUBLICLY TRADED BONDS WITH A FACE VALUE OF 13 BILLION BUT THE SENIOR CREDITORS' GRIP ON THE COMPANY COULD PROVE SO TIGHT THAT LITTLE VALUE SEEPS THROUGH TO MACY'S BONDHOLDERS THE REASON HOLDERS OF MACY'S SENIOR BANK DEBT HAVE A TRUMP CARD TO PLAY BECAUSE OF SEVERAL OVERLOOKED FACETS OF THEIR CLAIMS THE RIGHTS OF THESE BANKDEBT HOLDERS ARE DEFINED BY COVENANTS ARCANE TECHNICAL LANGUAGE BURIED DEEP IN REAMS OF MACY'S FINANCIAL DOCUMENTS DATING BACK AS FAR AS 1986 WHEN THE COMPANY WAS TAKEN PRIVATE IN A LEVERAGED BUYOUT THOSE COVENANTS SPECIFY THAT MACY'S BANK CREDITORS WHO ARE OWED ABOUT 14 BILLION MUST BE PAID ALL INTEREST DUE ON THEIR CLAIMS SINCE THE JANUARY 1992 BANKRUPTCYLAW FILING BEFORE BONDHOLDERS RECEIVE A PENNY MOREOVER THE BANK CREDITORS ACTUALLY CONTROL A SIGNIFICANT PORTION OF MACY BONDS THAT'S BECAUSE WHEN SOME OF THE CURRENT MACY SHAREHOLDERS PUT MONEY INTO THE COMPANY IN 1991 TO ALLOW IT TO BUY BACK ABOUT 420 MILLION OF ITS BONDS THOSE BONDS BECAME PART OF THE COLLATERAL BACKING THE BANKDEBT HOLDERS' CLAIMS THE BANK CREDITORS ARE STRENGTHENED BY THE LANGUAGE IN THE INDENTURE AND BY THEIR COLLATERAL POSITION NOTED ISAAC PACHULSKI A BANKRUPTCY SPECIALIST WITH STUTMAN TREISTER & GLATT A LOS ANGELES LAW FIRM SENIOR CREDITORS COULD USE THESE POWERS TO FORCE THROUGH A PLAN OF REORGANIZATION THAT FAVORS THEM IN EFFECT LEAVING THE BONDHOLDERS WITH LITTLE OR NOTHING IN PRACTICAL TERMS THAT MEANS INVESTORS WHO HAVE PAID AS MUCH AS 51 CENTS ON THE DOLLAR FOR MACY SENIOR BONDS MAY FACE STEEP LOSSES FOR HOLDERS OF MACY SUBORDINATED BONDS AND ZEROCOUPON BONDS THE PICTURE LOOKS EVEN GRIMMER THESE BONDS HAD SOARED IN PRICE AFTER FEDERATED ANNOUNCED THAT IT HAD BOUGHT HALF OF A 1 BILLION POOL OF MACY'S MORTGAGES FROM PRUDENTIAL INSURANCE CO OF AMERICA ON HOPES THAT THE RETAILER'S PRESENCE WOULD SPARK A BIDDING WAR THE LIKELIHOOD OF DISAPPOINTMENT LOOMS ESPECIALLY LARGE IF MACY IS UNABLE TO IMPROVE ITS OPERATING PERFORMANCE INVESTORS HAVE ALREADY PUSHED UP THE PRICE OF MACY BONDS SO HIGH THAT THE COMPANY'S MARKET VALUE IS ABOUT 3 BILLION OR A HEADY 13 TIMES CASH FLOW FOR THE YEAR ENDED IN AUGUST EVEN AT THESE ELEVATED VALUES CLAIMS OF SENIOR CREDITORS LEAVE LITTLE ON THE TABLE FOR ANYONE ELSE THAT'S BECAUSE BY DECEMBER THE EARLIEST THAT MACY IS LIKELY TO EMERGE FROM BANKRUPTCY COURT SENIOR CREDITORS' CLAIMS WOULD EXCEED 3 BILLION INCLUDING 26 BILLION CURRENTLY OWED AND AN ADDITIONAL 600 MILLION OR SO IN INTEREST THAT WOULD BE DUE THESE CREDITORS INCLUDE FEDERAL AND LOCAL TAX COLLECTORS AS WELL AS FEDERATED AND FIDELITY INVESTMENTS MACY'S SECONDLARGEST CREDITOR WITH A 490 MILLION HOLDING OF BANK DEBT DAVID G HEIMAN A BANKRUPTCY LAWYER AT CLEVELANDBASED JONES DAY REAVIS & POGUE WHICH IS REPRESENTING FEDERATED SAID HE PREFERRED NOT TO COMMENT ON THE POSSIBILITY OF A CRAM DOWN SEPARATELY DANIEL HARMETZ THE FIDELITY INVESTMENTS FUND MANAGER WHO HAS BEEN COURTING RIVAL BIDDERS IN HOPES OF PERSUADING THEM TO TRY TO TAKE CONTROL OF MACY TALKED WITH MANAGEMENT OF DILLARD DEPARTMENT STORES INC YESTERDAY TO BROACH THE TOPIC OF A FIDELITYDILLARD BID FOR MACY MR HARMETZ CALLED THE DISCUSSION NONEVENTFUL AND SAID IT WAS BRIEF TO SAY THE LEAST DILLARD DID NOT RETURN PHONE CALLS REQUESTING COMMENT FIDELITY INVESTMENTS ANNOUNCED THAT MR HARMETZ WHO HAD BEEN COHEAD OF FIDELITY'S CAPITAL & INCOME FUND CEDED MANAGEMENT OF THAT MUTUAL FUND TO HIS COMANAGER DAVID BREAZZANO EFFECTIVE JAN 14 MR HARMETZ WILL FOCUS ON FIDELITY'S PRIVATE BANKRUPTCY FUNDS BUT WILL CONTINUE TO BE RESPONSIBLE FOR FIDELITY'S MACY HOLDING 9401070092 940107 LETTERS TO THE EDITOR IT'S RUSSIAN BUT IT ISN'T CAPITALISM IN RESPONSE TO ARTHUR SCHLESINGER'S DEC 27 EDITORIALPAGE ESSAY FASCISM'S LENGTHENING SHADOW IT SEEMS STRANGE FOR ARTHUR SCHLESINGER TO ATTRIBUTE THE PROBLEMS IN RUSSIA TO CAPITALISM GIVEN THAT ONLY 5 OF THE CAPITAL STOCK IS IN PRIVATE HANDS THERE ARE NO LAWS TO PROTECT PRIVATE PROPERTY THE CENTRAL BANK CONTINUES TO PRINT RUBLES LIKE MAD AND FORMER COMMUNISTS AND THEIR SUPPORTERS STILL DOMINATE RUSSIAN POLITICS MORE THAN 80 OF THOSE EMPLOYED IN RUSSIA WORK IN THE PUBLIC SECTOR AND TAXES AS A PERCENTAGE OF GDP ARE TWICE AS HIGH AS THOSE IN THE US RUSSIA'S ECONOMY IS ALMOST AS SOCIALIST NOW AS IT WAS UNDER MIKHAIL GORBACHEV IT IS EQUALLY ABSURD FOR MR SCHLESINGER TO HOLD UP THE NEW DEAL AS A SOLUTION TO RUSSIA'S PROBLEMS WHEN DESCRIBING RUSSIA'S INCREASING GAP BETWEEN THE RICH AND POOR ITS CORRUPTION CRIME MISERY RESENTMENT ETC ONE WOULD HAVE THOUGHT THAT MR SCHLESINGER WAS CHARACTERIZING HIS OWN NEW YORK CITY OR ANY OTHER MAJOR URBAN AREA IN THE US POVERTY MISERY AND CRIME HAVE PERSISTED IN THE US DESPITE NEW DEALTYPE PROGRAMS IN FACT SOME WOULD MAINTAIN THAT THE INCREASE IN THESE PROBLEMS CAN BE LINKED TO SUCH GOVERNMENT SOLUTIONS HAVING SPENT TIME IN EASTERN EUROPE IT IS OBVIOUS TO ME THAT MANY OF THE PROBLEMS THERE AS IN THE US RESULT FROM A LACK OF CAPITALISM CAPITALISM REQUIRES A PRIVATE CAPITAL STOCK WHICH RUSSIA DOES NOT HAVE IT REQUIRES LAWS PROTECTING PRIVATE PROPERTY UNHEARD OF IN RUSSIA IT FUNCTIONS BEST WITH A STABLE CURRENCY SATURATING RUSSIA WITH RUBLES IS NOT CAPITALISM INSTITUTE THESE REFORMS AND RUSSIA AND ITS PEOPLE WILL BEGIN TO THRIVE AS IT IS MOST OF EUROPE RUSSIA AND THE US ARE ALREADY FOLLOWING MR SCHLESINGER'S ADVICE SO CAPITALISM CANNOT BE BLAMED FOR THE ENSUING CHAOS MR SCHLESINGER ARGUES THAT THE WEST IS PARTIALLY TO BLAME FOR THE RISE OF FASCISM IN RUSSIA BECAUSE IT HAS SUPPORTED ECONOMIC POLICIES LAISSEZFAIRE CAPITALISM THAT HAVE LED TO SUCH ECONOMIC DETERIORATION THAT RUSSIANS HAVE TURNED TO EXTREMISM IN THE FORM OF FASCISM AS A RESPONSE THIS ARGUMENT IS FLAWED FIRST FASCIST BEHAVIOR IS NOT A NEW PHENOMENON IN RUSSIA UNDER THE CZARS IT HAD FASCISTLIKE REGIMES FOR HUNDREDS OF YEARS SECOND THE CAUSE OF RUSSIA'S ECONOMIC DECLINE HAS BEEN YEARS OF SOCIALISTIC ECONOMIC POLICIES RUSSIA IN NO WAY RESEMBLES A CAPITALISTIC FREEMARKET ECONOMY LEGITIMATE FREEMARKET REFORMS HAVE YET TO BE IMPLEMENTED CLEARLY THE RUSSIAN ECONOMY IS GOING THROUGH A TRANSITION WHAT IT IS IN TRANSITION TO IS NOT CLEAR WHAT IS CLEAR IS THAT ANY ECONOMIC TRANSFORMATION WILL TAKE TIME AND NOT BE COSTLESS BUT HISTORY HAS SHOWN THAT COUNTRIES THAT HAVE ADAPTED FRIEDMANESQUE FREEMARKET POLICIES HAVE DRAMATICALLY INCREASED THEIR STANDARD OF LIVING WHILE ADDING TO SOCIAL STABILITY THE LIBERTE EGALITE FRATERNITE FOR WHICH PROF SCHLESINGER YEARNS IS SIMPLY AN EARLIER EXAMPLE OF THE COLLECTIVES' PRIORITY OVER THE INDIVIDUAL LET US EXAMINE ROUSSEAU'S OWN WORDS FROM HIS DISCOURSE ON POLITICAL ECONOMY EACH OF US PUTS HIS PERSON AND ALL HIS POWER IN COMMON UNDER THE SUPREME DIRECTION OF THE GENERAL WILL AND IN OUR CORPORATE CAPACITY WE RECEIVE EACH INDIVIDUAL MEMBER AS AN INDIVISIBLE PART OF THE WHOLE IS THIS WHAT THE PROFESSOR MEANS BY LIBERAL DEMOCRACY IF SO HOW DOES HE DIFFERENTIATE THIS FORM OF COLLECTIVE FROM OTHERS SUCH AS THE COMMUNISM AND FASCISM HE CLAIMS TO HATE PROF SCHLESINGER HAS NEVER DISGUISED HIS DISDAIN FOR THE LAISSEZFAIRE MARKET AND ITS ALLEGED TRANSGRESSIONS WHERE DOES HE BELIEVE IT EVER EXISTED NO STUDENT OF ECONOMIC HISTORY CAN IDENTIFY ANY PLACE IN ANY PERIOD WITH A TOTALLY FREE MARKET GOVERNMENT IN WHATEVER FORM HAS ALWAYS INTERVENED TO FAVOR ONE GROUP OVER ANOTHER VOLUNTARY EXCHANGE IS THE MOST JUST AND CIVILIZED SYSTEM OF GOODS AND SERVICES TRANSFER EVER EVOLVED AT THE INDIVIDUAL LEVEL IT IS EXCRUCIATINGLY SIMPLE VIEWED FROM THE AUGUST POSITION OF PROF SCHLESINGER AND HIS FELLOWS IT IS SO COMPLEX THEIR GUIDANCE IS NEEDED PERHAPS HE SHOULD FINALLY BREAK OPEN HIS UNIVERSITY COCOON AND COME JOIN THOSE OF US WHO MUST SATISFY THE VOLUNTARY MARKET EACH DAY PROF SCHLESINGER PREMATURELY BEMOANS THE SUCCESS OF FREEMARKET PHILOSOPHY WHICH HE SAYS HAS GIVEN RUSSIA A STRONG DOSE OF FREEBOOTING EXPLOITATIVE HARDHEARTED 19THCENTURY CAPITALISM PATIENCE PROFESSOR A COUNTRY CANNOT ENJOY A RESPONSIBLE JUST COMPASSIONATE 20THCENTURY MIXEDUP ECONOMY UNLESS THERE ARE FIRST ENOUGH RICH PEOPLE TO SOAK WEALTH TO BE CONFISCATED MUST FIRST BE PRODUCED 9401070091 940107 CREDIT RATINGS AMOCO CORP CHICAGO MOODY'S INVESTORS SERVICE INC SAID IT PLACED ABOUT 45 BILLION OF TRIPLEARATED LONGTERM DEBT FOR CERTAIN OF THIS ENERGY COMPANY'S SUBSIDIARIES UNDER REVIEW FOR POTENTIAL DOWNGRADE AMONG THE DEBT ISSUES BEING REVIEWED ARE AMOCO CO'S GUARANTEED DEBENTURES NOTES AND EURONOTES AND AMOCO CANADA PETROLEUM CO LTD'S GUARANTEED NOTES AND EURONOTES THE RATINGS CONCERN CITED PROBLEMS ASSOCIATED WITH REVERSING THE NEGATIVE TRENDS IN AMOCO'S FINANCIAL RETURNS CASH FLOW PROTECTION MEASURES AND PETROLEUM RESERVES EQUITABLE BAG CO LONG ISLAND CITY NY MOODY'S INVESTORS SERVICE INC DOWNGRADED THIS BAG MAKER'S SENIOR NOTES TO CAA FROM SINGLEB2 ABOUT 105 MILLION IN DEBT WAS AFFECTED THE RATINGS AGENCY CITED CONTINUED OPERATING DIFFICULTIES A HIGH DEBT BURDEN AND NONCOMPLIANCE WITH A DEBT COVENANT IN ADDITION EQUITABLE HAS SHOWN DECLINING SALES IN THE PAST NINE MONTHS AND ITS OPERATING PROFIT IS BEING OVERWHELMED BY HIGH DEBT SERVICING COSTS MOODY'S SAID MOODY'S ADDED THAT WITHOUT A SIGNIFICANT OR SUCCESSFUL PENETRATION OF NEW MARKET SEGMENTS SERVICING EQUITABLE'S FINANCIAL OBLIGATIONS WILL BE A DIFFICULT TASK THE COMPANY COULD NOT BE REACHED TO COMMENT ON THE DOWNGRADE MITCHELL ENERGY & DEVELOPMENT CORP MOODY'S INVESTORS SERVICE INC RAISED ITS RATINGS ON ABOUT 550 MILLION OF DEBT ISSUED BY THIS OIL NATURALGAS AND REALESTATE DEVELOPMENT COMPANY BASED IN THE WOODLANDS TEXAS THE RATING SERVICE RAISED MITCHELL'S SENIOR UNSECURED DEBT TO BAA3 FROM BA1 MOODY'S SAID MITCHELL'S RATED DEBT IS ISSUED BY THE PARENT COMPANY RATHER THAN THE ENERGY SUBSIDIARY WHICH IS ITS MAIN SOURCE OF CASH TO SUPPORT BONDS THUS THERE HAD BEEN SOME CONCERN ABOUT THE FINANCIAL IMPLICATIONS OF A LONGRUMORED SPINOFF MOODY'S SAID THE SERVICE ADDED THAT MITCHELL HAS STATED IT WILL IMPLEMENT ENHANCED BONDHOLDER PROTECTION PROVISIONS REGARDING THE COMPANY'S ABILITY TO PAY A DIVIDEND OR DISTRIBUTE ITS ENERGY ASSETS WITHOUT RESTRICTING THE DISTRIBUTION OF ITS REALESTATE ASSETS 9401070090 940107 ENTERTAINMENT THE EVOLUTION OF AMERICA'S LEADING MEN FROM RUDOLPH VALENTINO TO DAVID CARUSO BY LISA MILLER STAFF REPORTER OF THE WALL STREET JOURNAL THERE'S A NEW HUNK IN TOWN HE'S GOT PALE SKIN THINNING RED HAIR AND A PHYSIQUE THAT'S SLOUCHING TOWARD MIDDLE AGE HE'S DAVID CARUSO THE STAR OF ABC'S CONTROVERSIAL POLICE SERIES NYPD BLUE MR CARUSO EMPHATICALLY DOES NOT HAVE LEADINGMAN LOOKS BUT AS JOHN KELLY AN IRISHAMERICAN POLICE DETECTIVE WITH ROUGH EDGES AND A GENTLE SOUL HE HAS ATTRACTED THE INTEREST OF MANY WOMEN WOMEN ARE THE PRIMARY AUDIENCE FOR PRIMETIME PROGRAMS SO THEIR REACTION TO TELEVISION CHARACTERS IS CRUCIAL TO THE SUCCESS OF A SHOW FOR WOMEN AGED 18 TO 49 NYPD BLUE IS THE THIRTEENTH RATED PRIMETIME PROGRAM THE FIRST IS HOME IMPROVEMENT VERY HIGH FOR A POLICE SHOW WHICH TRADITIONALLY DRAWS MALE VIEWERS DAVID MILCH WHO ALONG WITH STEVEN BOCHCO PRODUCES NYPD BLUE SAYS WOMEN ARE DRAWN TO THE SHOW BY THE COMPLEX DRAMATIC CHARACTERS PARTICULARLY KELLY JOHN KELLY IS THE LATEST INCARNATION IN WHAT LYNN SPIGEL AN ASSOCIATE PROFESSOR OF CINEMA AND TELEVISION CALLS TV'S NEW MASCULINITY THE ERA CAN BE TRACED TO THE MID'80S WHEN THE MOVIE THREE MEN AND A BABY AND THE POPULAR TELEVISION SERIES THIRTYSOMETHING BEGAN PORTRAYING MEN WHO HAVE MACHO SEXUALITY BUT WHO ALSO EXPRESS EMOTION AND DO HOUSEWORK OTHER EXAMPLES TODAY SAYS DR SPIGEL WHO TEACHES AT THE UNIVERSITY OF SOUTHERN CALIFORNIA'S SCHOOL OF CINEMA AND TELEVISION ARE TIM TAYLOR IN THE ABC SITCOM HOME IMPROVEMENT AND THE SHIRTLESS CHISELJAWED MEN OF FOX'S MELROSE PLACE WHO ARE OFTEN SEEN DRYING THE DISHES IN BOXER SHORTS IN RECENT YEARS WOMEN HAVE HAD TO BALANCE THEIR PROFESSIONAL AND PERSONAL LIVES WHICH MAY EXPLAIN WHY THEIR TELEVISION HEROES HAVE EVOLVED INTO MORE REALISTIC MEN CERTAINLY FEMALE ROLES ON TELEVISION HAVE ALSO CHANGED SAYS RICHARD PENA DIRECTOR OF THE FILM SOCIETY OF LINCOLN CENTER IN THE 1970S HE SAYS FARRAH FAWCETT WAS TELEVISION'S PINUP GIRL NOW IT'S 47YEAROLD CANDICE BERGEN AS MURPHY BROWN AND SHARPTONGUED JULIA LOUISDREYFUSS FROM SEINFELD A WHOLE NUMBER OF WOMEN PASSED THROUGH LA LAW' ADDS MR PENA WHO WERE SMART GOOD LAWYERS AS WELL AS ATTRACTIVE SEXY WOMEN REALSEEMING MEN ON TELEVISION AND IN THE MOVIES LIKE AL PACINO AND MR CARUSO HAVE APPEAL BECAUSE THEY HAVE TO USE THEIR BRAINS NOT THEIR LOOKS TO GET THE GIRL SAYS ELIZABETH CAUSEY 31 A SCHOOL ADMINISTRATOR IN MANHATTAN THEY'RE SMART YOU THINK MAYBE THEY'RE SMART ENOUGH NOT TO LIKE KIM BASINGER THE FAVORED TYPE OF MAN IN AMERICAN POPULAR CULTURE TODAY IS A TOUGH BUT GENTLE GUY WHO SHOWS PSYCHOLOGICAL DEPTH AND COMPLEXITY SAYS DAVID SCHWARTZ HEAD OF FILM AND VIDEO AT THE AMERICAN MUSEUM OF THE MOVING IMAGE THUS CLINT EASTWOOD'S EVOLUTION FROM DIRTY HARRY TO A REPRESSED SECRET SERVICE AGENT WITH A BATTERED EGO IN IN THE LINE OF FIRE IN THE 1970S YOU SAW THE SENSITIVE QUIET MALE LIKE ALAN ALDA AND WOODY ALLEN SAYS MR SCHWARTZ THEN IN THE 1980S THERE WAS A BACKLASH AGAINST THAT WITH THE BIG MACHO STARS LIKE SCHWARZENEGGER OR STALLONE BUT THAT SORT OF CHARACTER HAS NO DIMENSIONS THE HARDBOILED GUY WITH THE HEART OF GOLD IS A STOCK CHARACTER IN AMERICAN TELEVISION AND FILM AND THE ACTORS WHO HAVE PLAYED HIM SPRING EASILY TO MIND TRACY BOGART AND CAGNEY THE ACTOR WITH WHOM MR CARUSO IS MOST OFTEN COMPARED MY IMMEDIATE RESPONSE TO CARUSO WAS THE SAME RESPONSE I HAD AS A CHILD TO JAMES CAGNEY SAYS ANITA BETHEL 40 AN NYPD BLUE FAN I ALWAYS FELT INSTINCTIVELY THAT CAGNEY WAS A VERY NICE MAN EVEN IN THOSE TOUGHGUY ROLES HE WAS A GUY WITH A BIG HEART MR PENA OF LINCOLN CENTER'S FILM SOCIETY SAYS MR CARUSO HAS SOMETHING ELSE TOO A CONTEMPORARY PSYCHOLOGY HE OFTEN FACES MODERN SITUATIONS IN WHICH RIGHT AND WRONG ARE OBSCURE IN WHICH GHASTLY URBAN VIOLENCE MAKES MORAL OR RATIONAL BEHAVIOR DIFFICULT KELLY SAYS MR CARUSO WANTS TO DO THE RIGHT THING BUT HE DOESN'T ALWAYS HAVE THE ANSWERS KELLY ALSO TAKES HIS CLOTHES OFF WHICH SETS HIM APART FROM HEARTTHROBS AND COPS OF THE PAST MR CARUSO'S IMPERFECT BACK IS SPORADICALLY DISPLAYED ON NYPD BLUE USUALLY ON ITS WAY FROM RUMPLED BED TO SHOWER ADVERTISERS KNOW THAT BOTH MEN AND WOMEN ARE RESPONDING TO MALE NUDITY SAYS NAOMI WOLF THE FEMINIST AUTHOR OF FIRE WITH FIRE WOMEN PERHAPS WITH ENTHUSIASM AND MEN PERHAPS WITH ANXIETY THAT KEEPS EVERYBODY TUNED IN COSMETICS FRAGRANCE DETERGENT AND DIETPLAN COMPANIES HAVE RESPONDED BY BUYING TIME ON NYPD BLUE KELLY'S RED HAIR IS A TIPOFF THAT HE'S A POSTMODERN HEARTTHROB NEITHER TALL DARK AND HANDSOME LIKE CARY GRANT NOR PRETTY AND WHOLESOME LIKE ROBERT REDFORD MR PENA SAYS MR CARUSO'S OFFBEAT LOOKS ENHANCE THE SENSE THAT JOHN KELLY IS A REAL PERSON A HEARTTHROB IS A VALENTINO A TOM CRUISE WHO HAS A CERTAIN KIND OF BEAUTY SAYS MR PENA CARUSO LOOKS LIKE A GUY WHO COULD BE A MILKMAN ERROL FLYNN COULD NEVER BE A MILKMAN DAVID CARUSO REPRESENTS A MAN WITH A CERTAIN KIND OF MACHISMO WHO HAS COME TO TERMS WITH FEMINISM HE KNOWS HE HAS TO NEGOTIATE AND COMPROMISE WHILE NOT BEING EITHER SEDUCED OR CONVINCED BY IT MR PENA ADDS MR CARUSO HIMSELF SAYS WOMEN LIKE HIS CHARACTER BECAUSE HE MAKES THEM FEEL SAFE HE'S EMOTIONAL MORAL AND VULNERABLE HE SAYS HE GOES TO CONFESSION BUT HE CARRIES A GUN MR CARUSO CREDITS HIS PHYSICAL CHARISMA TO HAVING BEEN AN ATHLETE IN HIGH SCHOOL I WASN'T THE TOP DOG HE SAYS BUT I COULD HOLD MY OWN IN ANY SITUATION WHATEVER MR CARUSO'S OWN CHARACTERISTICS THE PARTICULAR MIX OF WRITING ACTING AND PHYSICAL TRAITS THAT COMPRISE DETECTIVE JOHN KELLY APPEAL TO MANY AMERICAN WOMEN MOIRA SULLIVAN 26 AN ASSOCIATE AT MORGAN STANLEY SAYS THE PROCESS IS GRADUAL HE'S NOT NICE LOOKING AND HE'S GOT THAT REALLY BAD NEW YORK ACCENT THOSE TWO THINGS WERE HARD TO GET PAST AT FIRST SHE SAYS OF COURSE THERE ARE MANY WHO REMAIN UNSWAYED HE'S SO PERFECT COMPLAINS A 33YEAROLD SOCIAL WORKER IN NEW YORK PART OF THE TIME HE'S YOUR TYPICAL COP AND PART OF THE TIME HE TALKS LIKE HE HAS A PHD IN PSYCHOLOGY IT'S BEGINNING TO BUG ME 9401070089 940107 LEISURE & ARTS THE MOBILE GUIDE THE HIPPIE WAY TO TRAVEL BY SUSAN G HAUSER PORTLAND ORE TO SAN FRANCISCO EVEN BEFORE BOARDING THE GREEN TORTOISE THE HIPPIE VERSION OF THE GREYHOUND BUS THAT HAS BEEN PLYING AMERICA'S HIGHWAYS FOR NEARLY 25 YEARS I WAS BERATING MYSELF FOR BEING AN UNFIT MOTHER FROM THE LOOKS OF THE PASSENGERS WAITING TO LOAD THEIR SLEEPING BAGS AND BACKPACKS I WOULD BE EXPOSING MY CHILDREN TO SOME REAL WEIRDOS THERE WAS THE GUY WITH THE GREEN HAIR AND THE TATTOOS ALL OVER HIS LEGS I LOOKED ASKANCE AT THE FIFTYSOMETHING MAN WITH THE JOHN LENNON SPECTACLES THE BLACK SLIPPERS AND THE CONICAL CROCHETED CAP THE GIRL WITH THE DOG WAITED UNTIL THE ASSISTANT DRIVER WHO LOOKED LIKE A REFUGEE FROM A GRUNGE BAND CHECKED TO SEE IF ANY PASSENGERS WERE ALLERGIC TO DOGS COOL HE SAID WHEN ALL RESPONSES WERE NEGATIVE HE BECKONED THE GIRL ABOARD AND AS ORION THE DOG SNUFFLED UP AND DOWN THE AISLE LIKE A VACUUM CLEANER THE HIRSUTE DRIVER IN THE RAINBOW BERET PUT THE TORTOISE INTO GEAR AND WE WERE OFF ON A 22HOUR TRIP IN EVERY SENSE OF THE WORD TO SAN FRANCISCO OUR BUS'S NAME WAS ABIOGENESIS WHICH MEANS BRINGING A NONLIVING THING TO LIFE IT IS ONE OF A FLEET OF GREEN TORTOISE BUSES THAT JOURNEY ACROSS COUNTRY AND AS FAR SOUTH AS CENTRAL AMERICA CHEAPLY TRANSPORTING COUNTERCULTURE TYPES WHO SEEK TO ARRIVE INSPIRED NOT DOGTIRED AS THE COMPANY SLOGAN GOES THE PORTLANDSAN FRANCISCO RUN COSTS 39 COMPARED WITH 48 ON GREYHOUND THE OWNER OF THE BUS LINE GARDINER KENT NOW LIVES IN SAN FRANCISCO WHERE HE OPERATES A YOUTH HOSTEL BUT HE STILL OWNS COW CREEK THE SOUTHERN OREGON REST STOP THAT MAKES THE PORTLANDSAN FRANCISCO RUN UNIQUE IT'S A 117ACRE SPREAD NEAR THE TOWN OF ROSEBURG SMACK IN THE HEART OF TIMBER COUNTRY THE GOD AND SPOTTED OWLFEARIN' LOCALS HAVE INDICATED THAT THEY DON'T WANT NO DAMN HIPPIES STOPPING HERE SO A DINNER BREAK AT THE OWNER'S PROPERTY WAS A REASONABLE ALTERNATIVE IN A RETIRED BUS THAT HAD BEEN CONVERTED INTO A KITCHEN WE PREPARED OUR COMMUNAL MEAL THEN WE DISHED UP THE FISH AND VEGETABLES IN A LARGE GEODESIC DOME MADE FROM THREE BRANCHES AND PLASTIC THE DOME IS CALLED THE THOUGHTPROVOKING STRUCTURE NUMEROUS PEOPLE ASKED IF OUR REPAST CONTAINED ANY MEAT PRODUCTS AND WERE RELIEVED TO LEARN THAT NOTHING ANIMALISH SULLIED THE FOOD HOWEVER THE DRIVER AND MORE THAN HALF THE PASSENGERS SMOKED CIGARETTES THIS SITUATION I FOUND THOUGHTPROVOKING AT COW CREEK MY 12YEAROLD SON SAW A NAKED WOMAN UP CLOSE FOR THE FIRST TIME I THINK WE HAD WALKED DOWN TO THE CREEK TO SEE THE SAUNA BUILT ON THE BANK SUDDENLY A SHAPELY BLOND HIPPIE EMERGED NUDE AND GAILY WAVING HER HANDS ABOVE HER HEAD SCAMPERED INTO THE ICECOLD CREEK I TOLD CORY TO AVERT HIS EYES WHICH HAD MYSTERIOUSLY GROWN TO THE SIZE OF SAUCERS SPEAKING OF SAUCERS AFTER CONVERSING WITH MANY OF MY FELLOW PASSENGERS IT DAWNED ON ME THAT I WAS ABOUT THE ONLY ONE ON THE BUS WHO HAD NEVER ENCOUNTERED AN ALIEN OR A UFO I FEEL LEFT OUT I COMPLAINED GOODNATUREDLY TO THE COSMIC WOMAN AT MY SIDE I'VE NEVER SEEN A UFO SHE OFFERED A SUCCINCT SOLUTION CALL IT FORTH SHE WHISPERED BY THE TIME WE HIT THE ROAD AFTER DINNER MY KIDS HAD MADE LOTS OF NEW FRIENDS PEOPLE WHO SAW IN THEM FERTILE NEW GROUND FOR EXPOSTULATING ON STALE OLD HIPPIE POINTS OF VIEW I HAD HEARD THE SAME OLD STUFF A ZILLION TIMES SINCE COLLEGE DAYS SO I DIDN'T GREET THE THEORIES WITH THE SAME ENTHUSIASM FELT BY MY YOUNG SON MOM HE GASPED DID YOU KNOW OUR BODIES ARE JUST FIGMENTS OF OUR IMAGINATION YES I ANSWERED CURTLY I DID HE LOOKED AT ME WITH AMAZEMENT AND WITH A NEW RESPECT NEVER DID HE REALIZE THAT HIS MOTHER KNEW QUITE SO MUCH WE ROLLED DOWN THE HIGHWAY FOR ANOTHER HOUR OR TWO BEFORE OUR NEXT STOP THE DRIVER PLAYED GRATEFUL DEAD TAPES ON THE GENEROUS SOUND SYSTEMSPEAKERS LINED THE CEILING SO THAT NO PASSENGERS EXPERIENCE MUSIC WITHDRAWAL MIKE THE MAN SITTING ACROSS FROM ME TOLD ME HE HAD ATTENDED 30 GRATEFUL DEAD CONCERTS IN HIS LIFETIME HE SANG ALONG WITH EVERY SINGLE TUNE THE GRATEFUL DEAD SUPPLIED OUR LULLABY AS WE CONVERTED THE GREEN TORTOISE INTO ONE HUGE BED A PROCESS KNOWN AS DOING THE MIRACLE THE VERY FRONT AND BACK OF THE BUS BECAME CARPETED WITH FUTONS UPON WHICH PEOPLE STRETCHED OUT IN ROWS OF SLEEPING BAGS THE MIDDLE OF THE BUS WHICH DURING THE DAY HOUSED TWO CAFE BOOTHS BECAME THREETIERED BUNK BEDS ON EITHER SIDE CORY TOOK A TOP BUNK WHILE MY DAUGHTER AND I SQUEEZED TOGETHER ON A MIDDLE BUNK THE DRIVER TURNED OFF THE MUSIC AND SOON NOTHING WAS HEARD BUT SOFT SNORING AND THE WHEELS ON THE BUS GOING ROUND AND ROUND IN THE MORNING I AWOKE TO SEE THE SUN RISING ABOVE PALM TREES THE GREEN TORTOISE WAS INCHING ALONG IN RUSHHOUR TRAFFIC APPROACHING SAN FRANCISCO I GLANCED OVER AT THE VEHICLES IN THE OTHER LANES AND SAW PEOPLE STARING I ADMIT WE WERE QUITE A SIGHT A BUSLOAD OF PEOPLE IN BED THE GOLDEN GATE BRIDGE WAS IN VIEW WHEN PEOPLE STARTED ROLLING UP THEIR SLEEPING BAGS SITTING CROSSLEGGED ON THE FUTONS AND CONVERSING ABOUT THEIR TRAVEL PLANS A MAN MY AGE WHO TOLD ME HE HADN'T BEEN THE SAME SINCE VIETNAM SAID HE WOULD NOT BE LINGERING IN SAN FRANCISCO BUT WOULD LEAVE AS QUICKLY AS POSSIBLE TO CONTINUE HIS TRIP TO COSTA RICA IF I STAY TOO LONG IN SAN FRANCISCO HE COMPLAINED I GET ACID FLASHBACKS BY THE TIME WE ALL PARTED IN DOWNTOWN SAN FRANCISCO EVERYONE ON THE BUS WAS BEGINNING TO LOOK NORMAL TO ME EVEN THE GUY WITH THE GREEN HAIR I ACCEPTED THEM ALL AS PROPER TRAVELING COMPANIONS FOR ME AND MY CHILDREN THE KIDS AND I HOISTED OUR SLEEPING BAGS TO OUR SHOULDERS GRABBED OUR LUGGAGE TURNED OUR BACKS ON OUR FELLOW TRAVELERS AND WALKED AWAY I WONDERED HOW LONG IT WOULD BE BEFORE THE SPELL WAS BROKEN AND ONCE AGAIN THEY WOULD ALL SEEM LIKE WEIRDOS TO ME MS HAUSER IS A WRITER IN PORTLAND 9401070088 940107 TECHNOLOGY BRIEF TULARIK INC THERAPYCOLLABORATION PACT IS SIGNED WITH MERCK & CO CLOSELY HELD TULARIK INC SOUTH SAN FRANCISCO WON A BIG BOOST WHEN PHARMACEUTICAL GIANT MERCK & CO SIGNED AN AGREEMENT TO COLLABORATE ON A THERAPY TO IMPEDE THE PROGRESS OF SEVERAL SEXUALLY TRANSMITTED VIRUSES TERMS WEREN'T DISCLOSED MERCK HAS RIGHTS TO ANY PRODUCTS TULARIK DEVELOPS TO TREAT HERPES HUMAN PAPPILOMA VIRUS OR THE AIDS VIRUS AND HAS OPTIONS TO PRODUCTS THAT TREAT CYTOMEGALOVIRUS WHICH CAN LEAD TO LOSS OF VISION IN AIDS PATIENTS RESPIRATORY SYNCYTIAL VIRUS AND EPSTEIN BARR VIRUS 9401070087 940107 REVIEW & OUTLOOK EDITORIAL ATTORNEY ARMADA A FEW DAYS BEFORE THE NEW YEAR THE CLINTON JUSTICE DEPARTMENT FILED A LAWSUIT AGAINST THE CITY OF AURORA ILL FOR WHAT IT CALLED THE POLICE AND FIRE DEPARTMENTS' PATTERN AND PRACTICE OF DISCRIMINATION AGAINST JOB APPLICANTS WITH DISABILITIES SUCH AS CHRONIC BACK PROBLEMS JUSTICE'S CIVIL RIGHTS LAWYER CALLED THE SUIT A VENTURE INTO A NEW FIELD OF ANTIDISCRIMINATION LAW WELCOME TO THE NEXT BIG CHAPTER IN THE US LITIGATION EXPLOSION NOW BEING UNFOLDED BY THE CLINTON PRESIDENCY WHAT'S SO WRONG WITH MANDATING AN END TO BIAS IN AMERICA THE WAY IT WILL BE DONE INSTEAD OF CONCENTRATING ON INDIVIDUAL CASES OF DEMONSTRABLE DISCRIMINATION AS WAS THE GENERAL FEDERAL POLICY OF THE 1980S THE CLINTONITES SHOW EVERY INTENTION OF USING BROAD STATISTICAL MEASURES AS WITH AURORA THESE WILL SUBSTANTIATE A COMPANY'S PATTERNS AND PRACTICES OR MORE SPECULATIVELY THE ADVERSE IMPACT OF ITS POLICIES ON ACTUAL OR PROSPECTIVE EMPLOYEES SUPPLIERS OR CUSTOMERS ALL WITH REGARD TO PROTECTED CLASSES OF PEOPLE AND THOSE CATEGORIES KEEP INCREASING ONCE THE ACTIVIST LAWYERS ARE TURNED LOOSE AS THEY LAST WERE UNDER JIMMY CARTER WITH LESS SWEEPING LAWS TO WORK WITH US BUSINESSES CAN EXPECT TO BE DRAGGED INTO COURT OR OTHERWISE BROWBEATEN INTO SETTLEMENTS THAT BOOST THE STOCK OF SOME GROUPS AT THE EXPENSE OF OTHERS AND WE ARE TALKING ABOUT GROUPS BECAUSE THAT IS HOW REMEDIES ARE APPLIED WHEN THE MORE CONCRETE BUT DIFFICULT STANDARD OF BIAS AGAINST INDIVIDUALS IS DISCARDED BILL CLINTON'S COMPTROLLER OF THE CURRENCY EUGENE LUDWIG IS A LEADER IN THE NEW ANTIBIAS WAVE AT OTHER AGENCIES GENERAL COUNSELS ITCHING TO BREAK NEW GROUND ARE THE VANGUARD OF THE LEGAL ASSAULT MOREOVER THERE'S A PENTUP IMPATIENCE IN WASHINGTON'S LIBERAL COMMUNITY THAT WILL BE EASED ONLY BY THE KIND OF BROADBRUSH LITIGATION THAT WOULD SATISFY THOSE WHO THINK THE US IS A PATHOLOGICALLY BIASED SOCIETY THE SIGNALCALLER FOR THIS NEW GAME PLAN IS NONE OTHER THAN WEBSTER HUBBELL THE OFFENSIVE COACH AT THE JUSTICE DEPARTMENT THE ASSOCIATE ATTORNEY GENERAL FROM LITTLE ROCK'S ROSE LAW FIRM RECENTLY TOLD A LUNCHEON OF THE WASHINGTON COUNCIL OF LAWYERS A PRO BONO BASTION THAT HELP WOULD BE ON THE WAY SOON MOST SPECIFICALLY THERE WOULD BE A FRONTLOADED AGENDA FOR THE NEW ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS ONCE A REPLACEMENT FOR LANI GUINIER IS FINALLY FOUND AND FOR THE NEW TOP COMMAND AT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WE WILL BRING PEOPLE IN WHO INTEND TO BE ACTIVE SOUNDS LIKE THE RECRUITERS WILL BE VISITING THE UNIVERSITY OF WISCONSIN LAW SCHOOL THE CSPAN CAMERA WAS ON HAND TO RECORD HILLARY CLINTON'S FORMER LAW PARTNER ALSO PROMISING AGGRESSIVE PROSECUTION OF THE DISABILITIES ACT THE EDUCATION PERIOD IS OVER HE SAID SPECIFICALLY CITING DENTISTS WHO AVOID AIDS PATIENTS THERE WILL BE SCRUTINY OF INSURERS WHO SKIRT HIGHRISK AREAS DEMOLITION OF GLASS CEILINGS IN THE WORKPLACE AND ENFORCEMENT OF ENVIRONMENTAL EQUITY MEANING THEY'LL DISCOURAGE JOBCREATING NOXIOUS PLANTS IN POOR MINORITY AREAS WHERE LAND PRICES MIGHT INVITE THEM MR HUBBELL PRONOUNCED HIMSELF IN FAVOR OF BROADBASED REMEDIES ALL OF WHICH MEANS LAWYERS ON THE LEFT CAN START PUTTING THOSE NEW ADDITIONS ON THEIR HOMES THE CIVIL RIGHTS DIVISION AT JUSTICE IS A TURNKEY OPERATION FOR WHOMEVER THE CLINTONITES CHOOSE TO RUN IT ITS CAREER STAFF WAS BARELY AFFECTED BY THE REAGAN REVOLUTION AND IT'S DISPOSED TO FIND GROUNDS FOR SWEEPING LEGAL ACTION THE SITUATION IS DIFFERENT AT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WHERE CLARENCE THOMAS LED A GENUINE REFORMATION TOWARD AN INDIVIDUALRIGHTS MODEL IT WILL TAKE MANY MONTHS OF DILIGENT EFFORT TO IMPLANT THE GROUP VICTIMIZATION MENTALITY BACK INTO THAT AGENCY INDEED THE CASES OF MR THOMAS AND FORMER SUPREME COURT NOMINEE ROBERT BORK RECALL TO MIND WHAT THIS IMPENDING CLINTON COUNTERREVOLUTION IS ALL ABOUT BOTH WERE SAVAGED BY AN ALLIANCE OF LEGALPOLITICAL INTERESTS WHOSE AGENDA PUTTING ASIDE THE ABORTION ISSUE IS A STREAM OF CLASSBASED DISCRIMINATION CLAIMS IT'S PAYBACK TIME NOW AND THE CLINTONS ARE TRYING TO FILL THE SEATS OF LAWYERLY POWER IN THEIR EXECUTIVE BRANCH WITH THE PEOPLE WHO FOUGHT MESSRS THOMAS AND BORK WE SUSPECT MANY BUSINESS PEOPLE STILL REGARD THESE LEGAL STRUGGLES AS RATHER ARCANE OR PAROCHIAL STUFF THE YEARS JUST AHEAD ARE LIKELY TO TEACH THEM DIFFERENT COMPANIES AND OTHER INSTITUTIONS MAY FIND THAT THEIR BOTTOM LINE HAS A BALANCE DUE THAT SOME LEGAL MIND HAS TRACED TO UNCONSCIOUS DISCRIMINATION AGAIN THERE IS A BIG GAP HERE BETWEEN IDEALISTIC RHETORIC AND THE WAY THESE STRATEGIES GET PLAYED OUT THE ARGUMENTS FOR FAIRNESS AND DIVERSITY HAVE SUPERFICIAL APPEAL TO MOST PEOPLE BUT THEY GET TWISTED IN THE BIZARRE COURSE OF THE ACTUAL LITIGATION OVER STATISTICALLY DERIVED COMPLAINTS IN THE END THE CAUSE OF JUSTICE AMOUNTS TO FOUR WORDS SEE YOU IN COURT 9401070086 940107 MEDICALDEVICE FIRMS' NETS SEEN WEAK IN QUARTER CHARGES LIKELY TO BE TAKEN TO ADJUST TO PROPOSALS ON HEALTHCARE REFORM BY FELICIA PAIK SPECIAL TO THE WALL STREET JOURNAL NEW YORK RESTRUCTURING CHARGES AND SLUGGISH EARNINGS WILL STRIKE SOME MAJOR MEDICALDEVICE COMPANIES IN THE 1993 FOURTH QUARTER AN ILL EFFECT OF THE HEALTHCARE INDUSTRY'S RESPONSE TO THE CLINTON ADMINISTRATION'S REFORM PLANS ANALYSTS SAID THE CLINTON PLANS HAVE FORCED THE MARKETPLACE THE DOCTORS AND THE HOSPITALS TO PRACTICE MORE CONSERVATIVELY AND BE MORE COSTCONSCIOUS AND THAT HAS SPILLED DOWN TO MANUFACTURERS AND MEDICALSUPPLY COMPANIES SAID ANALYST EUGENE MELNITCHENKO OF LEGG MASON WOOD WALKER INC THE WRITEOFFS AND CHARGES ARE THE ADJUSTMENTS MADE FOR THE NEW ENVIRONMENT ANALYST SAM NAVARRO OF FURMAN SELZ INC SAID THE PROPOSED HEALTHCARE REFORMS RESULTED IN THE FREEZING OF HOSPITAL BUDGETS HALTING SOME SURGICAL PROCEDURES AND SLOWING THE PURCHASE OF HOSPITAL SUPPLIES WHICH HAS HURT THE MEDICALSUPPLY COMPANIES MR NAVARRO SAID 1993 WAS A TOUGH YEAR FOR THE INDUSTRY MOST COMPANIES WILL END UP SEEING FINANCIAL PERFORMANCES BELOW THE PROJECTED NUMBERS IN 1993 MEDICALSUPPLY HOUSES ARE EXPECTED TO SHOW 2 TO 4 GROWTH IN REVENUE COMPARED WITH THE 5 TO 7 RISE IN 1992 MR MELNITCHENKO SAID HE SAID PROFITS SHOULD INCREASE BY 6 TO 8 AGAINST THE 10 TO 15 GROWTH OF 1992 BAXTER INTERNATIONAL INC SAID IT WILL TAKE A PRETAX CHARGE AGAINST EARNINGS IN THE FOURTH QUARTER OF 700 MILLION TO RESTRUCTURE ITS BUSINESS AND CUT 4500 EMPLOYEES OR 73 OF ITS WORK FORCE ACCORDING TO A FIRST CALL RESEARCH NETWORK SURVEY 19 ANALYSTS ON AVERAGE ESTIMATE BAXTER WILL EARN 59 CENTS A SHARE FOR FOURTH QUARTER OF 1993 COMPARED WITH THE 62 CENTS REPORTED BY BAXTER IN THE YEARAGO PERIOD US SURGICAL CORP SAID IT EXPECTS A 125 MILLION RESTRUCTURING CHARGE IN THE 1993 FOURTH QUARTER THE COMPANY SAID THE CHARGE REPRESENTS COSTS ASSOCIATED WITH SCUTTLING OF PLANS TO OPEN A EUROPEAN HEADQUARTERS IN PARIS AND THE ELIMINATION OF 300 TO 500 EMPLOYEES FIRST CALL PROJECTS A FOURTHQUARTER LOSS OF NINE CENTS A SHARE COMPARED WITH NET INCOME OF 64 CENTS REPORTED FOR THE YEARAGO PERIOD IT WILL TAKE US SURGICAL A COUPLE OF YEARS TO RETURN TO ITS OLD EARNINGS POWER SAID ANALYST GLENN REICIN OF MORGAN STANLEY & CO THEY HAVE TO EMPHASIZE CONTROL OF COSTS AND GET AN INCREASED DEMAND FOR THEIR PRODUCTS MR REICIN ALSO NOTED THAT CR BARD INC HAS BEEN STRUGGLING TO INCREASE ITS SHARE OF THE ANGIOPLASTY MARKET FOR THE PAST THREE YEARS BUT HE EXPECTS THE COMPANY TO DO WELL IN 1994 WITH TWO NEW PRODUCTS UROLASE A LASER TREATMENT FOR PROSTATE CANCER AND CONTIGEN WHICH ALLEVIATES URINARY INCONTINENCE FIRST CALL ESTIMATES EARNINGS OF 43 CENTS A SHARE FOR CR BARD IN FOURTHQUARTER 1993 COMPARED WITH 40 CENTS A YEAR AGO ANALYSTS SAID ST JUDE MEDICAL INC ALSO SHOULD POST MODEST EARNINGS GROWTH FOR THE QUARTER ANALYSTS ARE WAITING FOR THE COMPANY TO DIVERSIFY IN 1994 PERHAPS THROUGH A MAJOR ACQUISITION AS PROMISED BY ST JUDE MEDICAL PRESIDENT AND CHIEF EXECUTIVE RONALD MATRICARIA WHO JOINED THE COMPANY IN MARCH 1993 FIRST CALL ESTIMATES ST JUDE EARNINGS AT 59 CENTS A SHARE FOR THE FOURTH QUARTER COMPARED WITH 55 CENTS IN 1992 MR REICIN SAID THIS YEAR'S MERGER OF COLUMBIA HEALTHCARE CORP AND HCAHOSPITAL CORP OF AMERICA WHICH JOINED THE NATION'S TWO LARGEST FORPROFIT HOSPITAL CHAINS AND THE MERGER OF MERCK & CO AND MEDCO CONTAINMENT SERVICES INC WHICH MADE MERCK THE BIGGEST PRODUCER AND DISTRIBUTOR OF PHARMACEUTICALS SPURRED EXECUTIVES OF OTHER HOSPITAL AND PHARMACEUTICAL COMPANIES TO CONSIDER A MERGER AS A WAY TO IMPROVE OPERATING EFFICIENCY BUT THERE HASN'T BEEN ANYTHING LIKE THAT IN THE MEDICALDEVICE ARENA YET FOR MANAGEMENT TO RESPOND TO MR REICIN SAID SUCH MERGER ACTION IN THE MEDICALSUPPLY SECTOR WOULD IMPROVE ITS EARNINGS PERFORMANCE HE SAID MR REICIN SAID HE EXPECTS SLOWER PERSHARE EARNINGS GROWTH FOR THE GROUP OF STOCKS HE FOLLOWS WHICH INCLUDES BAXTER US SURGICAL ST JUDE MEDICAL JOHNSON & JOHNSON AND CR BARD HE SAID THE GROUP'S EARNINGS SHOULD RISE 145 IN 1994 AFTER RISING 17 IN 1993 AND 19 IN 1992 FURMAN SELZ ANALYST MR NAVARRO SAID THE NEW FISCAL YEAR WILL SHOW A PICKUP FOR THE INDUSTRY BECAUSE HE BELIEVES THE MARKETPLACE ADJUSTMENTS TO THE CLINTON HEALTHCARE PROPOSALS ARE COMPLETE MR MELNITCHENKO ALSO SAYS HE THINKS MEDICALSUPPLY COMPANIES WILL SHOW HIGHER GROWTH IN 1994 HE PROJECTS AN IMPROVEMENT IN REVENUE OF 6 TO 8 AND A RISE IN PROFIT OF 10 TO 15 FROM 1993 9401070085 940107 QUARTERLY MUTUAL FUNDS REVIEW MUTUALFUND GAINS PUT INVESTORS ON TOP OF THE WORLD BY ROBERT MCGOUGH IT WAS A YEAR OF EXTRAORDINARY STRENGTH ACROSSTHEBOARD IN THE FUND BUSINESS SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER IN CHICAGO AFTER THE THIRD YEAR IN A ROW OF STRONG STOCKFUND RETURNS YOU PINCH YOURSELF THE ECONOMIC UPTURN HELPED ALL YEAR LONG I'VE BEEN A BULL ON THE ECONOMY SAYS G KENNETH HEEBNER WHOSE CGM CAPITAL DEVELOPMENT FUND GAINED 287 IN 1993 WITH HELP FROM A BIG STAKE IN CYCLICAL STOCKS TIED TO THE UPS AND DOWNS OF THE BUSINESS CYCLE THE GUIDING PRINCIPLE AT THIS POINT IN TIME IS RISKMANAGEMENT INSTEAD OF RETURNGATHERING SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER IN CHICAGO TAKE A MODESTLY AGGRESSIVE APPROACH BUT HEDGE BY HOLDING SOME CASH OR INVESTMENTS SUCH AS GOLD FUNDS WHICH TEND TO GO UP WHEN STOCKS GO DOWN STOCK FUNDS BEAT THE S&P 500 IN 1993 BECAUSE THEY OWNED STOCKS OF SMALL AND MIDSIZED COMPANIES THAT ARE RIDING THE ECONOMIC RECOVERY WITH MORE POISE THAN THE BIG BLUE CHIPS IN THE INDEX US STOCK FUNDS ALSO BOOSTED THEIR RETURNS BY SPLURGING ON HOT FOREIGN STOCKS WHILE US INVESTORS WHO STUCK TO HOME MADE GOOD MONEY IN 1993 THE YEAR WILL GO DOWN AS THE ONE WHEN AMERICAN FUND INVESTORS DISCOVERED FOREIGN STOCK MARKETS FUELED BY RECORD SUMS POURING INTO US MUTUAL FUNDS AND ACCELERATING INVESTMENTS BY INSTITUTIONAL INVESTORS LATIN AMERICAN MARKETS EXPLODED UPWARD IN THE FOURTH QUARTER CATCHING THE WAVE STOCK FUNDS INVESTING IN LATIN AMERICA ROSE 2896 IN THE LAST THREE MONTHS OF 1993 WHILE FOR THE YEAR THEY WERE UP 5705 FUNDS INVESTING IN THE PACIFIC ROSE 2662 IN THE FOURTH QUARTER CAPPING OFF A GAIN OF 6381 FOR THE YEAR ENTRANCED BY THE RETURNS THAT THEIR OWN MONEY HAD CREATED FUND INVESTORS CONTINUED TO POUR MONEY INTO INTERNATIONAL FUNDS AT THE END OF THE YEAR ONE OF THE INVESTORS MAKING MONEY IN PACIFIC FUNDS WAS CAROL SHEARER A SEMIRETIRED HEALTHCARE CONSULTANT IN IRVINE CALIF STARTING A YEAR OR TWO AGO MRS SHEARER MOVED OUT OF T ROWE PRICE INTERNATIONAL FUND AND TRADED AMONG SEVERAL OTHER PRICE FUNDS INCLUDING JAPAN AND NEW ASIA STOCK FUNDS BEAT THE PRELIMINARY 1034 ANNUAL RETURN OF TAXABLEBOND FUNDS IN 1993 BUT FEW INVESTMENT ADVISERS HAD EXPECTED INTEREST RATES TO FALL AS LOW AS THEY DID OR BOND FUNDS TO REGISTER SUCH GOOD GAINS BOTH BONDFUND AND STOCKFUND INVESTORS BEAT THE MEAGER 261 RETURN OF RETAIL MONEYMARKET FUNDS FOR THE YEAR IN FACT EVERY CATEGORY OF STOCK FUND MEASURED BY LIPPER ANALYTICAL SERVICES INC BEAT THE RETURN ON MONEYMARKET FUNDS THE TOTALRETURN FIGURES FOR STOCK AND BOND FUNDS MEASURE PRICE CHANGES AND REINVESTED DIVIDENDS DESPITE A REBOUND IN INTEREST RATES IN THE FOURTH QUARTER BOND FUNDS EKED OUT A SLIM GAIN OF 089 FUNDS INVESTING IN INTERESTRATESENSITIVE STOCKS ALSO FLAGGED IN THE FINAL THREE MONTHS OF 1993 UTILITY FUNDS DROPPED 276 ON AVERAGE FINANCIAL SERVICES FUNDS SLID 369 AND REALESTATE FUNDS FELL 102 ONLY JAPAN SUFFERED AMONG BIG OVERSEAS MARKETS IN THE FOURTH QUARTER AS THE JAPANESE ECONOMY SEEMED TO SINK EVER DEEPER BUT DESPITE A LOSS OF 1222 FOR JAPANESE STOCK FUNDS IN THE FOURTH QUARTER THE FUNDS STILL TURNED IN A STRONG 2294 TOTAL RETURN FOR US INVESTORS IN 1993 GOLD RESUMED ITS SURPRISINGLY STRONG RALLY LIFTING GOLD FUNDS 2478 IN THE FOURTH QUARTER AND 8087 IN THE YEAR EVEN HERE MUCH OF THE IMPETUS SEEMS TO BE COMING FROM GROWING WEALTH IN DEVELOPING NATIONS SAYS ANTHONY ORPHANOS MANAGER OF WARBURG PINCUS GROWTH & INCOME UP 371 IN 1993 THERE'S BEEN TREMENDOUS DEMAND AS A RESULT OF THEIR TREMENDOUS INCREASE IN WEALTH OVER THE LAST SEVERAL YEARS AND THE LACK OF DEPTH IN THEIR OWN CAPITAL MARKETS AS A PLACE TO INVEST THE SAVINGS BEING BUILT UP MR ORPHANOS SAYS THE SURFEIT OF GOOD NEWS IN STOCK MARKETS AROUND THE WORLD LEAVES SOME INVESTORS WONDERING ARE THERE ANY BARGAINS LEFT OUT THERE IT'S HARD TO GET EXCITED ABOUT ONE OR TWO ASSET CLASSES INTO WHICH INVESTORS COULD THROW A LOT OF NEW MONEY SAYS KENNETH GREGORY EDITOR OF NOLOAD FUND ANALYST A NEWSLETTER IN SAN FRANCISCO THAT SUGGESTS THAT INVESTORS MIGHT LOOK TO 1994 AS THE YEAR THAT THEY WANT TO BE REALLY DIVERSIFIED AND NOT MAKE A LOT OF BIG BETS FOR INVESTORS SAVING TOWARD A GOAL OF AT MOST 10 YEARS YOU REALLY WANT TO BE IN THREE AREAS DOMESTIC EQUITIES INTERNATIONAL EQUITIES AND SHORTTERM FIXEDINCOME OR CASH SAYS WILLIAM JOHN MIKUS A MANAGING DIRECTOR AT FINANCIAL DESIGN AN INVESTMENT ADVISORY FIRM IN LARKSPUR CALIF THE SHORTER YOUR TIME HORIZON HE SAYS THE MORE YOU SHOULD HOLD IN CASH OR IN SHORTTERM BOND FUNDS DESPITE THEIR FABULOUS RETURNS IN 1993 DON'T BET THE RANCH ON EMERGINGMARKETS FUNDS IN 1994 ADVISERS SAY EVEN IN THE BEST OF WORLDS THEY AREN'T LIKELY TO REPEAT SUCH A HUGE JUMP IN PRICES 9401070083 940107 ECONOMY GOLDEN WEST TALKS TO CALFED HOLDERS ABOUT BUYING THRIFT FOR 630 MILLION BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL GOLDEN WEST FINANCIAL CORP CHAIRMAN HERBERT M SANDLER TOOK HIS 630 MILLION OFFER FOR TROUBLED CALIFORNIA FEDERAL BANK DIRECTLY TO KEY SHAREHOLDERS AFTER AN OVERTURE WAS REBUFFED BY CALFED'S BOARD THE SHAREHOLDERS MOSTLY INSTITUTIONAL INVESTORS WHO COLLECTIVELY OWN MORE THAN 50 OF CALFED WERE STILL MEETING WITH MR SANDLER LAST NIGHT AND COULDN'T BE REACHED FOR COMMENT GOLDEN'S UNUSUAL MOVE WHICH CAME WEEKS AFTER CALFED'S BOARD REJECTED A LETTER OF INTENT OUTLINING GOLDEN'S BID CLASHES WITH THE OAKLAND CALIF THRIFT'S REPUTATION AS A STAID INSTITUTION THAT EVADED THE SAVINGSANDLOAN CRISIS UNDER ITS HUSBANDANDWIFE CHIEF EXECUTIVE TEAM HERBERT AND MARION SANDLER GOLDEN WITH 284 BILLION IN ASSETS NOW ENJOYS A 143 PROFIT MARGIN AMONG THE FATTEST IN THE INDUSTRY MEANWHILE CALFED WITH 157 BILLION IN ASSETS IS STRUGGLING AGAINST CONTINUED LOSSES BY ACQUIRING LOS ANGELESBASED CALFED GOLDEN WOULD EXPAND ITS PRESENCE IN SOUTHERN CALIFORNIA AND GIVE ITSELF FOOTHOLDS IN NEVADA AND GEORGIA AND BY CONSOLIDATING STAFF POSITIONS GOLDEN ALSO COULD WRING OUT ABOUT 60 MILLION TO 70 MILLION A YEAR SAID JONATHAN GRAY AN ANALYST AT SANFORD C BERNSTEIN & CO THE SANDLERS' INTEREST IN CALFED WAS APPARENTLY PIQUED BY AN ESSAY THAT EDWARD G HARSHFIELD CALFED'S NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER WROTE IN CALFED'S SEPT 30 REPORT TO SHAREHOLDERS THE TURNAROUND BANKER SAID CALFED WAS HURT BY NONPERFORMING LOANS AND HAD RETAINED INVESTMENT BANKER SMITH BARNEY SHEARSON INC TO EXPLORE WAYS TO MAXIMIZE SHAREHOLDER VALUE BUT IN AN INTERVIEW MR HARSHFIELD POOHPOOHED MR SANDLER'S OVERTURES THAT'S NOT AN OFFER IT'S A STARTING POINT TO MARK DOWN HE ADDED I'M WILLING TO SELL THIS PLACE AT FAIR VALUE I HAVEN'T SEEN A FAIR VALUE YET IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SHARES OF CALFED CLOSED AT 16125 UP 125 OR 84 ON VOLUME OF 13 MILLION SHARES THE COMPANY'S SEPT 30 BOOK VALUE WAS 2150 A SHARE SPECULATION ABOUT AN OFFER HAS CAUSED CALFED'S STOCK TO JUMP 32 SINCE EARLY NOVEMBER MEANWHILE GOLDEN'S STOCK ALSO LISTED ON THE BIG BOARD ROSE 75 CENTS TO CLOSE AT 3925 A SHARE ON VOLUME OF 204400 SHARES GOLDEN'S 630 MILLION BID INCLUDES 2150 A SHARE FOR CALFED'S 25 MILLION COMMON SHARES OUTSTANDING PLUS 90 MILLION FOR PREFERRED STOCK SUBJECT TO DUE DILIGENCE SMITH BARNEY WHICH BEGAN STUDYING CALFED IN JULY DECIDED TO HOLD AND FIX THE COMPANY RATHER THAN SELL IT TO A BIDDER UNDER THIS STRATEGY CALFED WILL SELL ITS SOUTHEAST DIVISION WHICH INCLUDES 43 BRANCHES WITH TOTAL ASSETS OF 4 BILLION AND RAISE 200 MILLION TO 300 MILLION IN NEW CAPITAL BY ISSUING AND SELLING PREFERRED STOCK AND THROUGH A RIGHTS OFFERING SEVERAL SHAREHOLDERS WHO DECLINED TO BE IDENTIFIED CRITICIZED THE HOLD AND FIX STRATEGY AS DILUTIVE TO THEIR HOLDINGS I HAVE TO THINK THAT SHAREHOLDERS ARE INFINITELY BETTER SERVED BY MR SANDLER'S OFFER SAID ONE HOLDER IN A LETTER SENT WITH THE BID MR SANDLER SAID THE PROPOSED ACQUISITION WOULD ALLOW CALFED TO QUICKLY PUT BEHIND IT THE UNCERTAINTY IN WHICH THE BANK CURRENTLY FINDS ITSELF AND TO FACE CONFIDENTLY ANY CONTINUING LOSSES 9401070082 940107 TECHNOLOGY & MEDICINE NEC SEEKING HELP FROM DELL IN SALES OF ITS COMPUTERS BY JACOB M SCHLESINGER AND DAVID P HAMILTON STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO NEC CORP ENCIRCLED BY A NEW WAVE OF US PERSONALCOMPUTER COMPETITORS IN ITS HOME MARKET IS TRYING TO DRAFT ONE OF THEM DELL COMPUTER CORPTO HELP PRESERVE ITS KINGDOM JAPAN'S LEADING PC MAKER WITH OVER 50 OF THE DOMESTIC MARKET IS NEGOTIATING TO SUPPLY NECSTANDARD PCS TO DELL WHICH WOULD SELL THE MACHINES IN JAPAN UNDER THE DELL LABEL AN NEC SPOKESMAN SAID NEC SELLS PCS IN JAPAN THAT AREN'T COMPATIBLE WITH THE STANDARD ESTABLISHED BY INTERNATIONAL BUSINESS MACHINES CORP DELL REFUSED TO COMMENT ON THE DISCUSSIONS AT THIS TIME THERE HAS BEEN NO DECISION MADE ON THIS PROJECT SAID A COMPANY SPOKESWOMAN IN TOKYO SHE ADDED HOWEVER THAT THERE IS MUCH POSSIBILITY THE COMPANY MIGHT OFFER PCS OTHER THAN THOSE HEWING TO THE IBM STANDARD SINCE IT IS DELL POLICY TO SUPPLY WHAT THE CUSTOMER NEEDS IF SUCH A DEAL BECOMES REALITY IT WOULD BE THE FIRST SUCCESS IN THE US ASSAULT ON NEC'S NEARMONOPOLY ON PCS IN JAPAN US MANUFACTURERS ENTERED JAPAN MORE THAN A YEAR AGO WITH IBMSTYLE MACHINES AND A PRICECUTTING ATTACK INTENDED TO ESTABLISH A BEACHHEAD IN THE WORLD'S SECONDLARGEST PC MARKET AND THE ONLY ONE THEY DON'T DOMINATE SO FAR US FIRMS HAVE RALLIED ALL OF JAPAN'S MAJOR PC MAKERS EXCEPT NEC TO THEIR STANDARD THE NEGOTIATIONS ALSO APPEAR TO SIGNIFY A NEW OFFENSIVE IN THE JAPANESE PC WARS SINCE NEC HAS NEVER BEFORE ALLOWED OTHER COMPANIES TO SELL ITS MACHINES IN THE JAPANESE MARKET IT'S AN ADMISSION THAT NEC IS HAVING TROUBLE RETAINING ITS SHARE AND WANTS TO SOLICIT OTHER MANUFACTURERS HELP SAID CHUCK GOTO AN ANALYST WITH SG WARBURG JAPAN INC FOR DELL TOO A DEAL WITH NEC WOULD MARK A MAJOR CHANGE IN ITS STRATEGY THE ONCE HIGHFLYING COMPUTER MAKER HAS BEEN PLAGUED BY TROUBLE IN ITS PRODUCT LINES ESPECIALLY LAPTOP COMPUTERS WHICH MAKE UP ROUGHLY 40 OF ALL PCS SOLD IN JAPAN DELL HAS ALSO BEEN IN RECENT NEGOTIATIONS TO BUY LAPTOP MACHINES FROM SONY CORP AND AST RESEARCH INC THE NEWS SHARPLY BOOSTED NEC'S SHARE PRICE IN TOKYO AT MIDMORNING ON THE TOKYO STOCK EXCHANGE NEC SHARES WERE UP 17 YEN OR NEARLY 2 AT 923 IN HEAVY DEALINGS AFTER ONLY AN HOUR OF TRADING MORE THAN FOUR MILLION SHARES HAD CHANGED HANDS THE NEC SPOKESMAN SAID DELL APPROACHED NEC ABOUT THE POSSIBLE TIEUP NEC AGREED TO THE TALKS HE ADDED BECAUSE DELL IS DOING DIRECT MARKETING OR SELLING BY MAIL ORDER SUCH SALES METHODS ARE RARE IN JAPAN AND CURRENTLY NEC DOES NOT HAVE A DIRECT SALES CHANNEL LIKE THAT THE SPOKESMAN SAID SO IT WOULDN'T HAVE ANY DIRECT IMPACT OR COMPETITION WITH OUR REGULAR RESALE CHANNELS HE SAID DELL WAS CONSIDERING SELLING NEC NOTEBOOKSIZED PCS AND DESKTOP MODELS AND THAT NEC HOPED TO START SELLING UNDER THE DELL NAME BY SPRING HE SAID NEC WAS AIMING TO SUPPLY DELL WITH AT LEAST 1000 UNITS A MONTH 9401070081 940107 KAWESKE PROBED BY SEC OVER PERSONAL TRADES FORMER PORTFOLIO MANAGER FIRED BY INVESCO BOUGHT ISSUE PUSHED BY KHAN BY LAURIE P COHEN AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING WHETHER FORMER INVESCO FUNDS GROUP PORTFOLIO MANAGER JOHN KAWESKE VIOLATED FEDERAL SECURITIES LAWS BY ALLEGEDLY FAILING TO REPORT CERTAIN TRADES IN HIS PERSONAL ACCOUNT TO HIS EMPLOYER LAWYERS FOR BOTH MR KAWESKE AND FOR INVESCO WHICH FIRED THE STAR PORTFOLIO MANAGER TUESDAY CONFIRMED THAT DOCUMENTS RELATING TO CERTAIN TRADES BY MR KAWESKE HAD BEEN TURNED OVER TO THE DENVER OFFICE OF THE SEC THIS WEEK AND THAT THE AGENCY WAS EXAMINING SOME OF MR KAWESKE'S TRADES DENVERBASED INVESCO PREVIOUSLY SAID IT DISMISSED MR KAWESKE FOR VIOLATING THE BIG MUTUALFUND COMPANY'S RULES ABOUT REPORTING PERSONAL SECURITIES TRADES IT SAID MR KAWESKE HADN'T GOTTEN APPROVAL FOR OR DIDN'T REPORT CONFIRMATION OF SOME 10 TO 20 TRADES IN HIS PERSONAL ACCOUNT MUTUAL FUNDS ARE REQUIRED BY THE SEC TO KEEP TRACK OF FUND MANAGERS' PERSONAL TRADES MR KAWESKE 52 YEARS OLD MANAGED OR COMANAGED THREE INVESCO FUNDS WITH ASSETS OF 46 BILLION OR NEARLY HALF THE 10 BILLION MANAGED BY INVESCO FUNDS GROUP THE GROUP IS OWNED BY UNITED KINGDOMBASED INVESCO PLC AN INVESTMENT MANAGER WITH 64 BILLION IN ASSETS INVESCO WOULDN'T GIVE SPECIFICS OF MR KAWESKE'S TRADES YESTERDAY BUT AT LEAST ONE OF THE TRADES IN QUESTION INVOLVED A PERSONAL INVESTMENT BY MR KAWESKE IN A PRIVATE OFFERING PUSHED BY RAFI KHAN A CALIFORNIA STOCK PROMOTER WHO IS WAGING A PROXY FIGHT FOR CONTROL OF ICN PHARMACEUTICALS ACCORDING TO INDIVIDUALS FAMILIAR WITH THE MATTER THEY SAID THE DEAL INVOLVED WAS TOO SMALL TO BE BOUGHT BY INVESCO FUNDS FUNDS MR KAWESKE MANAGED HAD BEEN LARGE BUYERS OF ICN AND OTHER STOCKS PROMOTED BY MR KHAN LAST MONTH A FEDERAL DISTRICT JUDGE PRESIDING OVER A LAWSUIT BROUGHT BY ICN FOUND THAT MR KHAN SCHEMED TO BUY STOCK IN BRITISH GAS ILLEGALLY IN 1986 THE JUDGE HAD ASKED FEDERAL PROSECUTORS TO EXAMINE WHETHER MR KHAN PERJURED HIMSELF DURING THE ICN PROCEEDINGS ACCORDING TO DAN HESSER INVESCO'S CHAIRMAN AND CHIEF EXECUTIVE THE COMPANY ALSO LEARNED THIS WEEK OF UNREPORTED TRADES IN MR KAWESKE'S WIFE'S NAME MR HESSER SAID THESE TRADES VIOLATED THE FIRM'S RULES ROBERT DAVENPORT THE HEAD OF THE SEC'S REGIONAL OFFICE IN DENVER DECLINED TO CONFIRM OR DENY THE EXISTENCE OF AN INVESTIGATION INTO TRADING BY MR KAWESKE GLEN PAYNE INVESCO'S GENERAL COUNSEL SAID INVESCO'S FIRING OF MR KAWESKE WAS RELEVANT TO OUR SEC REPORTING REQUIREMENTS ANDREW LEVANDER THE ATTORNEY REPRESENTING MR KAWESKE SAID HE BELIEVED THE SEC INVESTIGATION WOULDN'T UNCOVER ANYTHING MORE THAN VIOLATIONS OF A TECHNICAL REPORTING REQUIREMENT HE SAID THAT THIS ISN'T A QUESTION OF INTEGRITY OR HARM TO SHAREHOLDERS AND THAT MR KAWESKE ALWAYS KEPT THE SHAREHOLDERS' INTERESTS FIRST MR LEVANDER SAID MR KAWESKE WASN'T AS CLOSE TO MR KHAN AS OTHER INVESCO FUND MANAGERS WERE INDEED INVESCO'S STRATEGIC PORTFOLIOS TECHNOLOGY FUND MANAGED BY DAN LEONARD CONTINUES TO HOLD STOCKS IN ITS PORTFOLIO FIRST INTRODUCED TO INVESCO BY MR KHAN ACCORDING TO INVESCO'S MR PAYNE HOWEVER MR PAYNE SAID WE AS A FIRM HAVE NOT DONE BUSINESS WITH RAFI KHAN FOR AT LEAST THE LAST THREE MONTHS MR PAYNE ADDED THAT WE HAVE ABSOLUTELY NO INFORMATION THAT ANY OTHER PORTFOLIO MANAGER HAS VIOLATED OUR CODE OF CONDUCT MR KAWESKE WHO SPECIALIZED IN HEALTHCARE AND BIOTECHNOLOGY STOCKS ALSO SEEMED TO HAVE A CLOSE RELATIONSHIP WITH ANOTHER STOCK PROMOTER DAVID BLECH MR BLECH IS THE CHAIRMAN OF D BLECH & CO A NEW YORK BROKERAGE FIRM THAT SPECIALIZES IN FINANCING BIOTECHNOLOGY COMPANIES AS OF OCT 31 MR KAWESKE'S FUNDS OWNED SEVERAL STOCKS SPONSORED BY D BLECH LAST YEAR MR KAWESKE'S SON JOHN KAWESKE JR WORKED AT D BLECH AS A VICE PRESIDENT OF INVESTMENTS AS PREVIOUSLY REPORTED SEC ENFORCEMENT INVESTIGATORS ARE LOOKING AT WHETHER MR BLECH MAY HAVE VIOLATED SECURITIES LAWS BY BESTOWING CHEAP STOCK ON MONEY MANAGERS AND OTHERS PRIOR TO PUBLIC OFFERINGS IN THE PAST MR BLECH SOLD CHEAP STOCK AND WARRANTS TO BROKERS AND INFLUENTIAL WALL STREET EXECUTIVES WHO THEN HAD A VESTED INTEREST IN PROMOTING HIS DEALS TO INVESTORS INVESCO'S MR PAYNE SAID NOBODY KNEW THAT MR KAWESKE'S SON WORKED FOR BLECH HE SAID THAT IF AS A RESULT OF KAWESKE'S SON GOING TO WORK FOR BLECH THERE IS EVIDENCE THAT OUR FUNDS BOUGHT DEALS THAT WOULD BE VERY SERIOUS MR LEVANDER SAID THAT MR KAWESKE HAD DISCLOSED HIS SON'S EMPLOYMENT TO INVESCO THE AGREEMENT WAS THAT INVESCO WOULDN'T COMPENSATE HIS SON IN ANY WAY FOR INVESCO PURCHASES OF BLECHSPONSORED DEALS MR LEVANDER SAID MR KAWESKE ACCEPTED ONLY ONE BLECHSPONSORED STOCK ON BEHALF OF HIS FUNDS DURING THE TIME HIS SON WORKED AT D BLECH REJECTING FOUR OTHERS MR KAWESKE SR NEVER PERSONALLY INVESTED IN A BLECH DEAL MR LEVANDER SAID THE PERFORMANCE OF MR KAWESKE'S FUNDS HAS BEEN HURT BY A GENERAL DECLINE IN THE PRICES OF MEDICAL AND BIOTECHNOLOGY STOCKS PEOPLE CLOSE TO MR KAWESKE SAY HE RECENTLY INDICATED TO INVESCO'S MANAGEMENT THAT HE WAS PLANNING TO LEAVE THE FIRM INDIVIDUALS WHO KNOW HIM SAY HE BELIEVES THAT THE FIRM FIRED HIM BECAUSE IT WAS ANGRY ABOUT HIS IMPENDING DEPARTURE BUT MR HESSER INVESCO'S CHAIRMAN SAID THE FIRING IS NOT A VENDETTA AGAINST KAWESKE MR PAYNE THE GENERAL COUNSEL SAID THE FIRM DISCOVERED THE ALLEGED TRADING VIOLATIONS DURING AN ONGOING REVIEW OF OUR EMPLOYEES' PERSONAL SECURITIES TRANSACTIONS MR PAYNE SAID INVESCO HAS SO FAR EXAMINED TWO YEARS WORTH OF MR KAWESKE'S PERSONAL TRADES AND IS PLANNING TO CONTINUE ITS INVESTIGATION 9401070080 940107 SMALL STOCK FOCUS ISSUES EKE OUT 012 GAIN IN SHADOW OF ANOTHER RECORD DAY FOR INDUSTRIALS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK ANOTHER SLOW STEADY MOVE HIGHER BY SMALLCOMPANY STOCKS WAS OVERSHADOWED BY A SECONDSTRAIGHT RECORD CLOSE BY THE DOW JONES INDUSTRIAL AVERAGE BUT OBSERVERS SAID NOT TO COUNT SMALLER STOCKS OUT SMALL STOCKS HAD THAT TERRIFIC RUN FROM APRIL TO OCTOBER AND THE DOW INDUSTRIALS KIND OF TRUDGED FORWARD SAID ALFRED E GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS INC A LITTLE SLUGGISHNESS HERE IS UNDERSTANDABLE AND NORMAL THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES EKED OUT A 031POINT OR 012 GAIN TO END AT 25833 JUST 184 POINTS OR 071 FROM ITS RECORD OF 26017 SET NOV 2 NASDAQ STOCKS CHURNED A BIT IN A NARROW RANGE BUT THE COMPOSITE INDEX CHALKED UP 236 POINTS OR 030 TO 78041 ONLY 699 POINTS OR 089 FROM ITS RECORD CLOSING HIGH HIT OCT 15 NASDAQ ADVANCERS BEAT RETREATERS 1634 TO 1430 BUT THE INDUSTRIALS CLIMBED 506 POINTS OR 013 TO 380388 BREAKING THE RECORD SET WEDNESDAY AND BUSTING THROUGH THE 3800 BARRIER FOR THE FIRST TIME INDEED TODAY'S NEW YORK STOCK EXCHANGE RALLY WAS POWERED BY ECONOMICALLY SENSITIVE ISSUES WITH BIG BOARD ADVANCERS BARELY SCRAPING PAST DECLINERS SOME FEEL THIS NARROWBASED STRENGTH MIGHT NOT BE SUSTAINABLE NASDAQ NATIONAL MARKET ROSE SLIGHTLY TO 296513337 SHARES FROM 295128300 SHARES WEDNESDAY TOTAL VOLUME FELL BACK A BIT TO 349206000 SHARES FROM 249880300 WEDNESDAY IN THE MEDICALRELATED GROUP MCGAW AN IRVINE CALIF PRODUCER AND DISTRIBUTOR OF INTRAVENOUS SOLUTIONS AND ASSEMBLIES SURGED 4 1/2 OR 42 TO 15 1/4 LATE WEDNESDAY IVAX TRADED ON THE AMERICAN STOCK EXCHANGE SAID IT HAS ENTERED INTO A DEFINITIVE MERGER AGREEMENT TO BUY MCGAW FOR ABOUT 440 MILLION SEVERAL WAVES OF GOOD NEWS CAUSED MONARCH CASINO & RESORT TO RALLY 2 TO 11 1/4 THE COMPANY SAID REVENUE ROSE 26 FOR THE FOURTH QUARTER AND 16 FOR THE FULL YEAR BASED ON A PRELIMINARY REVIEW MONARCH ALSO SAID IT WILL EXPAND ITS CLARION HOTEL CASINO IN RENO NEV SEPARATELY THE COMPANY SAID THE CITY OF GARY IND AGREED TO ENDORSE DUNES MARINA RESORT & CASINOS INC A MAJORITYOWNED SUBSIDIARY OF MONARCH AS ONE OF TWO CODEVELOPERS OF GAMING FACILITIES IN GARY SUBJECT TO ADDITIONAL APPROVALS A DISAPPOINTING 1994 EARNINGS OUTLOOK TOOK DOWN UNITED STATES BANKNOTE NYSE 1 3/4 TO 4 3/8 THE NEW YORK DESIGNER AND PRODUCER OF DOCUMENTS OF VALUE SAID A LOSS OF STAMP BUSINESS FROM THE US POSTAL SERVICE COULD REDUCE EARNINGS BY ABOUT 15 CENTS A SHARE THIS YEAR STRUCTURAL DYNAMICS RESEARCH RETREATED 1 1/8 TO 13 3/4 MORGAN STANLEY AND HANCOCK INSTITUTIONAL EQUITY SERVICES LOWERED THEIR RATINGS ON THE SOFTWARE COMPANY IN MILFORD OHIO TO HOLD FROM BUY THE BROKERAGE FIRMS CITED THE COMPANY'S ANNOUNCEMENT WEDNESDAY THAT IT EXPECTS FOURTHQUARTER REVENUE AND EARNINGS TO FALL SHORT OF ANALYSTS' EXPECTATIONS SOME SMALLER INTERESTRATE SENSITIVE STOCKS FELL BACK DESPITE A BOND RALLY FOR EXAMPLE ANCHOR BANCORP WISCONSIN MADISON WIS WAS DOWN 1/2 TO 22 3/4 FIRST INDIANA CORP INDIANAPOLIS WAS OFF 1/4 TO 23 1/4 AND CENTERBANK LOST 1/4 TO 11 1/4 BUT CALIFORNIA FEDERAL BANK NYSE ROSE 1 1/4 TO 16 1/8 THE COMPANY SAID LATE WEDNESDAY THAT IT HAS HIRED SMITH BARNEY SHEARSON INC TO SELL ITS SOUTHEAST DIVISION TO ENABLE IT TO CONCENTRATE ITS OPERATIONS IN CALIFORNIA AND NEVADA AND FOCUS ALL EFFORTS ON MAXIMIZING ITS OPERATING PROFITS IN THAT REGION ALSO CALIFORNIA FEDERAL SAID IT PLANS TO RAISE 200 TO 300 MILLION IN NEW CAPITAL THROUGH THE SALE OF PREFERRED STOCK AND A RIGHTS OFFERING TO ITS STOCKHOLDERS RETAILERS WERE IN THE SPOTLIGHT AND MANY FELL FOLLOWING DISAPPOINTING DECEMBER RESULTS FOR STORES OPEN AT LEAST A YEAR SOLO SERVE PLUMMETED 7/8 TO 3 1/8 THE COMPANY IN SAN ANTONIO TEXAS SAID DECEMBER SAMESTORE SALES FELL 56 WHILE SAMESTORE SALES FOR THE 48 WEEKS ENDED JAN 1 DECLINED 57 OTHER COMPANIES THAT SHOWED DECLINES AFTER REPORTING A DECREASE IN SAMESTORE SALES WERE MERRYGOROUND ENTERPRISES JOPPA MD DOWN 1/2 TO 3 1/2 AND ANNTAYLOR STORES NEW YORK DOWN 1 TO 24 7/8 BOTH ARE LISTED ON THE NYSE NASDAQTRADED DRESS BARN STAMFORD CONN SAGGED 1 TO 12 7/8 NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 121 WHILE 23 HIT NEW LOWS OBSERVERS SUCH AS AG EDWARDS'S GOLDMAN HOWEVER THINK THE RUSSELL 2000 AND THE NASDAQ COMPOSITE WILL BOTH MAKE NEW HIGHS SOON IT'S NOT LIKE THEY'RE WALLFLOWERS HE SAID SMALLER STOCKS ARE STILL IN A STRONG BULL MARKET ANALYSTS NOTE HOWEVER THAT IT'S A SELECTIVE MARKET RECENT TRENDS HAVE SHOWN BUYERS THROWING MONEY AT A VARIETY OF STOCKS ON A CASEBYCASE BASIS RATHER THAN BUILDING UP ANY ONE SECTOR OUR MARKET DOESN'T HAVE TO ACT GREAT TO TRADE WELL SAID JIM WHIPPLE SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROTHERS INC WHIPPLE ADDED THAT FIRSTOFTHEYEAR EUPHORIA IS SPURRING MARKET PLAYERS TO PUT THEIR MONEY INTO THE MOST EASILY ACCESSIBLE STOCKS THE LARGE CYCLICALS 9401070079 940107 LEISURE & ARTS BOOKSHELF A LIFE AT THE MERCY OF IDEOLOGY BY BRUCE BAWER IDEOLOGY THE ELDERLY SOVIET EMIGRE AVIGDOR BARKOV DECLARES IN NATHAN SHAHAM'S PENETRATING NEW NOVEL BONE TO THE BONE GROVE PRESS 345 PAGES 22 HAS PLAYED AN IMPORTANT ROLE IN MY LIFE MR SHAHAM MAKES THAT ABUNDANTLY CLEAR IN THIS BOOK WHICH TAKES THE FORM OF A JOURNALCUMMEMOIR BEGUN BY AVIGDOR AFTER ARRIVING IN ISRAEL THOUGH HE HAS WORKED AS AMONG OTHER THINGS A MINER PRINTER ROAD BUILDER FARMHAND SHEPHERD COWBOY AND LUMBERJACK AND THOUGH HE HAS LOVED TWO WOMEN AND FATHERED A CHILD BY EACH OF THEM AVIGDOR'S LIFE HAS CENTERED NOT ON THESE OCCUPATIONS AND ATTACHMENTS BUT ON MARXIST POLITICS BORN WITH THE CENTURY AVIGDOR CAME OF AGE ABOUT THE TIME OF THE RUSSIAN REVOLUTION INSPIRED IN HIS YOUTH BOTH BY THE ZIONISM HE SHARED WITH HIS FATHER A TALMUDIC SCHOLAR AND BY A ZEALOUS DEVOTION TO INTERNATIONAL COMMUNISM HE LEFT HIS NATIVE UKRAINE FOR PALESTINE THERE HE WAS ACTIVE IN THE COMMUNIST PARTY AND THE REVOLUTIONARY UNDERGROUND BUT WHEN HE CAME TO RECOGNIZE THE CONFLICT BETWEEN MARXISM AND JEWISH NATIONALISM AND TO FEEL THAT SOVIET RUSSIA WAS A BRAVE NEW WORLD AND ZIONISM A TOOL OF WESTERN IMPERIALISTS HE RETURNED HOME ONLY TO SPEND MOST OF THE STALINIST PERIOD EITHER IN PRISON FOR BEING INSUFFICIENTLY ORTHODOX OR IN THE RED ARMY THERE IS NO CHRONOLOGICAL ORDER TO AVIGDOR'S RECOLLECTIONS HE RECOUNTS HIS MEMORIES HAPHAZARDLY AS THEY ARE TRIGGERED BY CURRENT EVENTS HIS MANNER IS BRISK BLUNT COLLOQUIAL AND DESPITE HIS AVOWALS OF PASSION ODDLY DISPASSIONATE THOUGH NO LONGER AN IDEALIST HE SEES LIFE NEITHER THROUGH A TRAGIC NOR AN ABSURDIST LENS HE BELIEVES IN TRUTH IN UNDERSTANDING HIS PAST IN SERVING HUMANITY'S GREATER GOOD YET HE DOESN'T SEEM OVERBURDENED BY GUILT OVER HIS LONGTIME SUPPORT OF TOTALITARIANISM A DOCUMENTARY MAKER SHELVES A PLANNED PROJECT ABOUT HIS LIFE BECAUSE THE CAMERA LIKES SHARP CONTRADICTIONS VIVID COLORS CLOSED CIRCLES WHILE FOR AVIGDOR LIFE IS A MATTER OF LOOSE ENDS MORAL AMBIGUITIES SHADES OF GRAY TO HIS MIND INDEED THE HISTORY OF SOVIET COMMUNISM IS A STORY NOT OF DEMONS AND SAINTS BUT OF HUMAN SUBTLETIES AND UNCERTAINTIES WHEN HE ADDRESSED AN ISRAELI AUDIENCE ABOUT THE LEADERS OF THE SOVIET DEMOCRACY MOVEMENT A NUMBER OF MY LISTENERS WERE DISPLEASED THAT I HADN'T GIVEN THEM HALOS BUT HAD PORTRAYED THEM AS MODEST UNASSUMING PEOPLE WHOSE CELEBRATED HEROISM GREW OUT OF AN INABILITY AT SOME POINT IN THEIR LIVES TO ACCEPT SOME PIECE OF ARBITRARY INJUSTICE OR SOME TOO BLATANT LIE AVIGDOR QUOTES A FRIEND AS SAYING THAT SHAKESPEARE COULD NEVER HAVE WRITTEN A SOVIET TRAGEDY BECAUSE IT WOULD HAVE BEEN BEYOND THE POWER OF HIS IMAGINATION YET WHAT MR SHAHAM WHO HAS LIVED HIS ENTIRE LIFE ON A KIBBUTZ HAS WRITTEN IS JUST SUCH A TRAGEDY OF A MAN WHOSE MISGUIDED IDEOLOGICAL FERVOR MADE HIM AN INSTRUMENT OF TYRANNY DROVE HIM TO REJECT HIS FAMILY OBLIGATIONS AND HAS LEFT HIM IN HIS OLD AGE STRUGGLING TO FORGE NEW TIES TO CHILDREN AND GRANDCHILDREN TO WHOM HE IS A STRANGER AVIGDOR IS ALSO ONE MIGHT ADD STRUGGLING TO COME TO TERMS WITH THE GOD OF HIS FATHERS ABOUT WHOM HE SAYS ALL MY LIFE I HAVE MAINTAINED THAT HE DOES NOT EXIST AND BEHAVED AS IF HE DOES THERE IS A DEEP IRONY IN THIS FOR IN FACT AVIGDOR THE MARXIST ZEALOT WAS LIKE HIS TALMUDIST FATHER A MAN PROPELLED BY FAITH EVEN THOUGH HIS OWN PARTICULAR FAITH WAS ONE THAT SOUGHT TO EXTINGUISH THE VERY IDEA OF A SPIRITUAL REALM AND A SUPREME BEING AS A YOUNG MEMBER OF THE PARTY FAITHFUL IN PALESTINE FOR INSTANCE HE FELT THAT THE REVOLUTION HAD CHOSEN HIM AND HIS COMRADES TO BE THE JESUS OF OUR TIMES HIS RETURN TO RUSSIA WAS MOTIVATED BY A FRIEND WHO TALKED MARXISM IN THE LANGUAGE OF THE PROPHETS ORIGINALLY PUBLISHED IN HEBREW IN 1981 AND RENDERED INTO A VIGOROUS ENGLISH BY DALYA BILU BONE TO THE BONE IS AN IMPRESSIVELY IMAGINED STUDY OF A MAN WHO COMES OFF AS A REPRESENTATIVE 20THCENTURY FIGURE WITHOUT EVER CEASING TO BE A PLAUSIBLE INDIVIDUAL THE BOOK IS AT ITS MOST EFFECTIVE WHEN IT FOCUSES ON THE THREAT TO CIVILIZED VALUES POSED BY IDEOLOGY THAT DISCOUNTS THE INDIVIDUAL AND VIEWS HUMAN BEINGS AS MEANS OF PRODUCTION COLD SHIVERS RUN DOWN MY SPINE WRITES AVIGDOR WHEN I REMEMBER THINGS THAT I MYSELF SAID IN THOSE YEARS OF PASSIONATE ENTHUSIASM IS IT REALLY POSSIBLE FOR A STUPID MOB OF GREEDY KULAKS TO HOLD BACK THE GALLOPING CHARIOT OF HISTORY' AND THAT WAS ENOUGH TO MAKE ME INDIFFERENT TO THE FATE OF MILLIONS AVIGDOR HAS A COUPLE OF REASONS FOR WRITING HIS MEMOIR ONE OF THEM HE EXPLAINS IS A SOCIALISTBRED SLAVERY TO DOCUMENTS AND ONE IS HIS RECOGNITION OF THE POWER OF WORDS AT THE OLDAGE HOME TO WHICH HE EVENTUALLY MOVES HE'S ASSIGNED TO A ROOM THAT FORMERLY BELONGED TO A POLISH JUDGE READING THROUGH THE MAN'S LIFETIME OF CORRESPONDENCE AVIGDOR COMES TO FEEL THAT HE KNOWS HIM INTIMATELY I COULD HAVE LIVED THE REST OF MY LIFE WITHOUT EVER KNOWING THAT HE HAD EXISTED AVIGDOR NOTES AND YET NOW THAT I AM BREATHING HIS LONELINESS INTO MY LUNGS I CANNOT BANISH HIM FROM MY ROOM MANY A READER OF BONE TO THE BONE MAY FIND AVIGDOR EQUALLY DIFFICULT TO BANISH 9401070078 940107 THURSDAY'S MARKETS INDUSTRIALS PUSH ABOVE 3800 BONDS SURGE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE BROKE THROUGH THE 3800 LEVEL TO ITS SECONDCONSECUTIVE RECORD IN HEAVY TRADING BOND PRICES SURGED AND THE DOLLAR WAS MIXED AFTER CLIMBING MORE THAN 14 POINTS THE INDUSTRIAL AVERAGE RETREATED A BIT TO END WITH A 506POINT GAIN TO A RECORD 380388 STANDARD & POOR'S 500STOCK INDEX EDGED DOWN 043 TO 46712 AND THE NASDAQ COMPOSITE INDEX ADDED 236 TO 78041 THE DOW INDUSTRIALS BOLTED THROUGH THE 3800 LEVEL AFTER THE OPENING BELL CARRIED BY A VIGOROUS ADVANCE IN BOND PRICES INVESTORS CONTINUED TO FAVOR CYCLICAL STOCKS DRIVING THE ECONOMICALLY SENSITIVE DOW JONES TRANSPORTATION AVERAGE TO ITS SECONDSTRAIGHT NEW HIGH THE TRANSPORTS SOARED 2338 TO A RECORD 180221 DURING THE PAST TWO DAYS THE AVERAGE HAS GAINED 27 TRADING VOLUME ON THE NEW YORK STOCK EXCHANGE YESTERDAY WAS THE NINTH HEAVIEST IN HISTORY ANALYSTS SAID LARGE INSTITUTIONAL INVESTORS ARE REENTERING THE MARKET READJUSTING PORTFOLIOS AS THEY OFTEN DO AT THE BEGINNING OF A YEAR BOND PRICES JUMPED EARLY AFTER LABOR SECRETARY ROBERT REICH ESTIMATED IN A TELECONFERENCE THAT TODAY'S EMPLOYMENT REPORT WOULD SHOW A SMALLERTHANEXPECTED GROWTH IN JOBS AFTER THE MARKET MISINTERPRETED HIS REMARK AS FACT THE BUREAU OF LABOR STATISTICS SAID IT WAS JUST AN EDUCATED GUESS AND NOT BASED ON ACTUAL FIGURES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 009 TO 11165 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3634 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1076 ISSUES ROSE AND 1054 FELL THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17445 MARKS AND 11265 YEN COMPARED WITH 17395 MARKS AND 11290 YEN WEDNESDAY 9401070077 940107 PRESSURE GROWS FOR RELEASE OF IRANCONTRA REPORT WASHINGTON LAWYERS FOR NEWS AND RESEARCH ORGANIZATIONS STEPPED UP PRESSURE FOR THE RELEASE OF INDEPENDENT PROSECUTOR LAWRENCE WALSH'S LONGAWAITED REPORT ON THE IRANCONTRA AFFAIR A THREEJUDGE PANEL SIGNALED LAST MONTH THAT THE FINDINGS WOULD BE RELEASED SOON WITH ONLY MINOR DELETIONS BUT SO FAR THERE HAS BEEN NO ACTION WHILE THE COURT CONSIDERS SEALED MOTIONS ON BEHALF OF FORMER REAGAN ADMINISTRATION OFFICIALS SEEKING TIME TO APPEAL THE ORDER TO THE SUPREME COURT ATTORNEYS FOR THE SOCIETY OF PROFESSIONAL JOURNALISTS REPORTERS COMMITTEE FOR FREEDOM OF THE PRESS AND THE NATIONAL SECURITY ARCHIVE COUNTERED YESTERDAY BY ASKING THE COURT TO MAKE THESE MOTIONS PUBLIC TO FORCE AT LEAST A MORE PUBLIC AIRING OF THE JUSTIFICATION FOR THE DELAY THE ACTION CAME AS LEE HAMILTON D IND CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS COMMITTEE WROTE TO THE PANEL ASKING FOR RELEASE OF THE REPORT RELEASING THIS MATERIAL WILL CONTRIBUTE GREATLY TO PUBLIC UNDERSTANDING OF THE AFFAIR SAID REP HAMILTON WHO SERVED AS CHAIRMAN OF THE SPECIAL HOUSE IRANCONTRA INVESTIGATIVE COMMITTEE IN 1987 SUPPRESSION OF THIS MATERIAL COULD DAMAGE RATHER THAN PROTECT INDIVIDUAL REPUTATIONS AND THE PUBLIC RECORD 9401070076 940107 BUSINESS BRIEF TELEPANEL SYSTEMS INC FIRST MAJOR CONTRACT WON FOR SHELFLABELING PRODUCT TELEPANEL SYSTEMS INC TORONTO SAID IT WON A CONTRACT TO INSTALL ITS ELECTRONIC SHELFLABELING SYSTEM IN AS MANY AS 60 GROCERY STORES OWNED BY LOBLAW COS OF TORONTO THE CONTRACT VALUED AT ABOUT 3 MILLION US OVER TWO YEARS MARKS TELEPANEL'S FIRST MAJOR CONTRACT FOR ITS PRODUCT CURRENTLY TELEPANEL'S SYSTEM IS INSTALLED IN 18 STORES IN THE US AND CANADA INCLUDING EIGHT LOBLAW OUTLETS THE TELEPANEL SYSTEM USES RADIO TRANSMITTERS TO SEND DATA TO ELECTRONIC DISPLAY TAGS ON STORE SHELVES PRODUCT PRICE CHANGES ARE MADE AT A CENTRAL COMPUTER LINKED TO THE STORE'S SCANNING SYSTEM ENSURING THAT THE PRICE MARKED IS THE PRICE CHARGED 9401070075 940107 QUARTERLY MUTUAL FUNDS REVIEW WORLD MARKETS CAN'T BE FOREIGN TO US INVESTORS ANYMORE BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE WORLD IS GETTING SMALLER WHETHER INVESTORS LIKE IT OR NOT THEIR WALLETS ARE INFLUENCED NOT ONLY BY CLOAKROOM CONVERSATIONS IN WASHINGTON BUT BY BULL SESSIONS IN BRUSSELS THEIR MONTHLY STATEMENTS REFLECT THE POISE OR PANIC ON THE TRADING FLOORS OF TOKYO AND LONDON JUST AS AN AMERICANMADE CAR IS INCREASINGLY LIKELY TO CONTAIN PARTS FROM JAPAN OR MEXICO MANY US MUTUAL FUNDS NOW BUY FOREIGN STOCKS AS A MATTER OF COURSE TAKE JANUS FUND FOR EXAMPLE JAMES CRAIG MANAGER OF THE 9 BILLION DENVERBASED FUND IS KNOWN FOR HIS PROWESS AS A PICKER OF US GROWTH STOCKS BUT HE SAYS THE US MARKET IS PICKED OVER I HAVE FOUND WONDERFUL STOCKS IN SWITZERLAND OF JANUS FUND'S 10 BIGGEST STOCK POSITIONS RECENTLY FIVE WERE SWISS IN ADDITION MUTUAL FUNDS SPECIFICALLY CHARTERED TO INVEST OVERSEAS ARE WINNING A BIGGER SHARE OF US INVESTORS' DOLLARS THE MERRILL LYNCH GLOBAL ALLOCATION FUND FOR EXAMPLE FIRST HIT 1 BILLION IN ASSETS AROUND LABOR DAY 1992 ONE YEAR LATER THE FUND CONTAINED 46 BILLION AND TODAY IT IS CLOSING IN ON 6 BILLION FUND MANAGER BRYAN ISON SAYS THAT A YEAR AGO HE WOULD HAVE CONSIDERED SUCH GROWTH ABSOLUTELY IMPOSSIBLE EVEN INDEX FUNDS FUNDS THAT ATTEMPT TO MIMIC THE PERFORMANCE OF THE OVERALL US STOCK MARKET ARE FEELING A JOLT FROM THE FLOW OF AMERICAN INVESTORS' MONEY ABROAD IN 1993 VANGUARD INDEX TRUST500 PORTFOLIO THE US'S LARGEST INDEX FUND WAS UP 99 THE THIRDLOWEST RETURN AMONG THE COUNTRY'S 25 BIGGEST STOCK FUNDS ONE REASON OTHER BIG STOCK FUNDS WANDERED FAR AFIELD FROM THE US AND IT PAID OFF MANY OF THE LARGE FUNDS HAVE HAD SUBSTANTIAL BETS INTERNATIONALLY SAYS GEORGE U SAUTER THE VANGUARD MANAGER WHO RUNS THE INDEX FUND HERE'S WHAT THE MANAGERS OF FIVE OF THE US'S JUMBO FUNDS ARE SAYING AT THE MOMENT ABOUT THE INTERNATIONAL TREND AND OTHER INVESTMENT ISSUES JANUS FUND'S MR CRAIG SAYS THAT SWISS COMPANIES USED TO BE INDIFFERENT OR EVEN HOSTILE TO US INVESTORS COMPANY OFFICIALS WOULDN'T MEET WITH US EVEN THOUGH WE WERE SHAREHOLDERS HE RECALLS DISCLOSURE OF CORPORATE DEVELOPMENTS AND STRATEGIES WAS SKETCHY BUT ALL OF THAT HAS CHANGED IN THE PAST COUPLE OF YEARS HE SAYS COMPANIES IN SWITZERLAND HAVE COME TO REALIZE THE VALUE OF TAPPING THE US MARKET THEY NOT ONLY WILL MEET WITH AMERICAN INVESTORS THEY COME TO THE US TO SEEK THEM OUT ENGLISHLANGUAGE VERSIONS OF SWISS ANNUAL REPORTS ARE BECOMING COMMON MR CRAIG HAS BIG POSITIONS IN A HANDFUL OF SWISS STOCKS INCLUDING ROCHE HOLDING SCHWEIZERISCHER BANKVEREIN CREDIT SUISSE AND SCHWEIZENSCHE BANK GESELLSCHAFT HIS FAVORITE IS SWISS RE WHICH DEALS BOTH IN REINSURANCE HENCE ITS NAME AND CONVENTIONAL INSURANCE SWISS RE HAS BEEN GAINING MARKET SHARE IN EUROPE PARTLY BECAUSE OF RECENT TROUBLES AT LLOYD'S OF LONDON HE SAYS MR CRAIG IS SKEPTICAL ABOUT THE RECENT TRENDINESS OF STOCKS FROM DEVELOPING COUNTRIES SUCH AS COLOMBIA AND BRAZIL THEY HAVE WORKED GREAT HE SAYS BUT US INVESTORS MAY BOLT IF THE US MARKET RUNS INTO TURBULENCE AND IN MANY CASES THERE'S NO STRONG HOME MARKET TO SUPPORT THESE FARFLUNG STOCKS AMONG US STOCKS HIS BIGGEST HOLDING IS WALMART STORES I'VE REBUILT MY WALMART POSITION AS THE STOCK FELL TO 25 FROM 35 HE SAYS HE THINKS THE SAM'S WAREHOUSESTORE DIVISION WHICH HAD BEEN A WEAK POINT WILL BECOME A STRONG POINT AS TWO MAJOR COMPETITORS COSTCO AND PRICE HAVE MERGED TO FORM PRICE/COSTCO AND A THIRD THE PACE UNIT OF KMART HAS SOLD MANY OF ITS STORES TO WALMART VANGUARD INDEX THE VANGUARD INDEX TRUST500 PORTFOLIO WHICH CLOSELY TRACKS THE PERFORMANCE OF THE STANDARD & POOR'S 500STOCK INDEX OUTPERFORMED MOST MUTUAL FUNDS IN 1988 1989 AND 1990 SINCE THEN IT HAS OUTPERFORMED ONLY 45 TO 47 OF THE FIELD THAT'S MOSTLY BECAUSE SMALL STOCKS AND RECENTLY FOREIGN STOCKS HAVE OUTPACED THE BIG US STOCKS IN THE INDEX MR SAUTER THE FUND'S MANAGER THINKS SMALL STOCKS MIGHT CONTINUE TO DO WELL ACCORDINGLY HE URGES INVESTORS TO CONSIDER A SISTER FUND THE VANGUARD TOTAL STOCK MARKET PORTFOLIO AS FOR FOREIGN STOCKS MR SAUTER SAYS HE ISN'T AT ALL SURE THAT THEIR RECENT HOT STREAK WILL CONTINUE MANY PEOPLE WHO HOLD EUROPEAN STOCKS EXPECT THAT INTEREST RATES WILL BE LOWERED IN EUROPE THAT WOULD HELP STOCKS ALL RIGHT SAYS MR SAUTER BUT IT COULD ALSO CAUSE EUROPEAN CURRENCIES TO DECLINE AGAINST THE DOLLAR SHAVING THE FOREIGN PORTFOLIOS' VALUE AFTER TRANSLATION TO DOLLARS THE ARGUMENT FOR INDEXING IS THAT IT IS NEARLY IMPOSSIBLE TO PREDICT IN ADVANCE WHICH MUTUAL FUNDS WILL SHOW ABOVEAVERAGE PERFORMANCE BECAUSE INDEX FUNDS DO VERY LITTLE TRADING OF STOCKS THEY HAVE LOW ADMINISTRATIVE COSTS AND GENERATE RELATIVELY SMALL TAX OBLIGATIONS IN LIGHT OF THAT A CONVENTIONAL FUND NEEDS TO BEAT AN INDEX FUND BY ONE PERCENTAGE POINT EVERY YEAR TO COME OUT EVEN MR SAUTER SAYS SOUND SMALL THAT'S ACTUALLY HUGE HE SAYS OVER THE 10 YEARS THROUGH DECEMBER 1992 ONLY 16 FUNDS OUT OF 205 STUDIED BY VANGUARD MANAGED TO BEAT THE WILSHIRE 5000 A BROAD STOCK MARKET INDEX BY ONE PERCENTAGE POINT A YEAR AND AN INVESTOR MIGHT NOT BE ABLE TO PICK THOSE 16 FUNDS IN ADVANCE FIDELITY ASSET MANAGER AN ASSET ALLOCATION FUND CHANGES ITS BLEND OF INVESTMENTS STOCKS BONDS AND CASH IN THE US AND ABROAD ACCORDING TO MANAGER ROBERT BECKWITT'S VIEW OF WHERE THE BEST RATIO OF RISK TO REWARD LIES MR BECKWITT CURRENTLY HAS ABOUT HALF OF HIS STOCK AND BOND PORTFOLIO OUTSIDE THE US FOREIGN INVESTING STILL HAS A LOT OF OPPORTUNITIES HE SAYS ENOUGH TO ENCOURAGE ME TO TAKE MONEY THAT WOULD NORMALLY BE IN THE US AND MOVE IT OVERSEAS HIS FAVORITE FOREIGN STOCK MARKETS NOW ARE BRITAIN AND MEXICO IN BRITAIN HE SAYS YOU'VE GOT A GREAT FUNDAMENTAL PICTURE OF LOW INFLATION INTEREST RATES THAT WILL BE LOWERED MORE AND ECONOMIC GROWTH THE MARKET SHOULD BE VERY PLEASANT MEXICO'S CENTRAL BANK HAS LARGELY WON ITS LONGTIME WAR AGAINST RAMPANT INFLATION MR BECKWITT SAYS SO IT CAN AFFORD TO TAKE ITS FOOT OFF THE BRAKE AND ALLOW THE COUNTRY'S MONEY SUPPLY TO GROW MORE FREELY ALSO HE SAYS MEXICO IS ONE OF THE CHEAPER MARKETS AROUND WITH MANY STOCKS SELLING FOR LESS THAN 10 TIMES THE COMPANIES' EARNINGS THE US STOCK MARKET HE SAYS ISN'T CHEAP BUT HAS SOME ATTRACTIVE COMPANIES WITHIN IT NOW THAT EMPLOYERS ARE LIKELY TO HAVE TO PAY MORE FOR THEIR WORKERS' HEALTH CARE HE THINKS COMPANIES WILL TRY TO REPLACE LABOR WITH CAPITAL SO HE'S BUYING COMPUTEREQUIPMENT MAKERS SUCH AS COMPAQ COMPUTER INTERNATIONAL BUSINESS MACHINES CISCO SYSTEMS AND CABLETRON SYSTEMS HE ALSO LIKES JUNK BONDS CALLING THEM THE CHEAPEST FINANCIAL ASSET IN THE UNITED STATES THOUGH HE CAUTIONS THEY SHOULD BE BOUGHT ONLY AS PART OF A DIVERSIFIED PORTFOLIO MR ISON OF MERRILL LYNCH GLOBAL ALLOCATION FUND IS CARRYING A HEAVIERTHANUSUAL CASH POSITION AND IS LIGHTER THAN USUAL IN STOCKS ONLY 37 I DON'T HAVE A STRONG FEELING THAT STOCKS WILL DECLINE MR ISON SAYS RATHER HIS CAUTIOUS STANCE STEMS FROM WHAT HE CALLS A DISTINCT SHORTAGE OF BARGAINS IN STOCK MARKETS AROUND THE GLOBE FOR THE PAST COUPLE OF YEARS WE GENUINELY DID PERCEIVE THERE TO BE BARGAINS IN EUROPEAN STOCKS HE SAYS I HAVE TO SAY THAT'S LESS TRUE TODAY BECAUSE EUROPEAN STOCK MARKETS HAVE BEEN RALLYING SINCE THE FALL OF 1992 HE BELIEVES INVESTORS HAVE PAID IN ADVANCE FOR A EUROPEAN ECONOMIC RECOVERY THAT'S STILL ON THE HORIZON IN THE US PHILIP MORRIS IS MR ISON'S BIGGEST STOCK POSITION THE STOCK FELL FROM A PEAK OF 77625 TO A TROUGH OF 45 LAST YEAR AS THE COMPANY SLASHED THE PRICE OF MARLBORO CIGARETTES AFTER THE HIT IT TOOK IT SIMPLY GOT TO PRICES WHERE WE FELT THE MARKET WAS PAYING CLOSE TO NOTHING FOR THE DOMESTIC TOBACCO BUSINESS RECALLS MR ISON AT ITS CURRENT PRICE OF 58375 HE CALLS PHILIP MORRIS A REASONABLE HOLD ALSO BATTERED LAST YEAR WERE THE DRUG STOCKS MR ISON MOVED INTO THE SEGMENT IN THE SPRING AND IS HOLDING BRISTOLMYERS SQUIBB SMITHKLINE BEECHAM MERCK AND AMERICAN HOME PRODUCTS FINANCIAL STOCKS ALSO INTEREST MR ISON IN THE PAST FOUR MONTHS THESE STOCKS HAVE FALLEN AS THE MARKET GOT A WHIFF OF HIGHER INTEREST RATES MR ISON DOES BELIEVE THAT HIGHER RATES ARE A THREAT BUT IN HIS VIEW STOCKS SUCH AS CHEMICAL BANKING FIRST UNION AND STUDENT LOAN MARKETING ASSOCIATION SIMPLY GOT TO PRICES THAT WERE ATTRACTIVE WOLODYMYR WRONSKYJ DREYFUS FUND'S MANAGER THINKS 1994 WILL BE A DECENT YEAR IN THE STOCK MARKET BUT NOTHING SPECTACULAR THE US ECONOMY WILL PROBABLY CONTINUE AT THE SAME PACE AS IN 1993 HE SAYS IT IS DIFFICULT TO SEE A MUCH STRONGER PICKUP FOR THAT YOU WOULD NEED BETTER FOREIGN ECONOMIES HE ALSO FIGURES THAT HIGHER TAXES WILL RETARD US GROWTH MR WRONSKYJ IS MAKING A BIG BET ON THE AUTO INDUSTRY INCLUDING CHRYSLER FORD MOTOR TRW WHICH MAKES AIR BAGS EATON STRONG IN TRUCK PARTS AND VARITY ANTISKID BRAKES HIS FAVORITE IS CHRYSLER WHICH HE SAYS IS ROLLING OUT GOOD PRODUCTS THAT PEOPLE ARE BUYING AMONG STOCKS THAT ARE SOMEWHAT BEATEN UP HE FAVORS COMPUTER MAKER HEWLETTPACKARD AND CHIP MAKER INTEL HE IS ALSO FOND OF DIAL CONSOLIDATED RAIL AND COLGATEPALMOLIVE 9401070074 940107 REVENUESHARING PLAN FOR BASEBALL TEAMS FAILS ROSEMONT ILL MAJOR LEAGUE BASEBALL OWNERS FELL ONE VOTE SHORT OF ENACTING A REVENUESHARING PLAN FOLLOWING A SEVENHOUR MEETING HERE TWENTY OF THE 28 TEAMS BACKED A PLAN PROPOSED BY THE PLAYER RELATIONS COMMITTEE THE OWNERS' LABOR ARM SHORT OF THE 75 MAJORITY REQUIRED FOR PASSAGE THE OWNERS WILL TRY AGAIN AT THEIR NEXT ROUND OF MEETINGS SCHEDULED TO BEGIN IN FORT LAUDERDALE FLA JAN 17 I'D BE A LIAR IF I DIDN'T SAY I'D HOPED TO COME TO A CONCLUSION AND GET ON TO THE MAIN EVENT OF NEGOTIATING WITH THE UNION SAID RICHARD RAVITCH HEAD OF THE COMMITTEE BUT HE ADDED I'M STILL AN OPTIMIST THE OLD LABOR CONTRACT EXPIRED DEC 31 THE OWNERS MUST APPROVE A REVENUESHARING PLAN TO PUT FORTH A SALARYCAP PROPOSAL TO THE PLAYERS IN ADDITION SMALLMARKET CLUBS THAT ARE STRAPPED FOR REVENUE HAVE PRESSED FOR AID FROM BIGMARKET TEAMS AS THE REVENUE GAP BETWEEN THE TWO HAS GROWN THE BIGMARKET TEAMS OFFERED THEIR OWN REVENUESHARING MEASURE WHICH GARNERED 11 VOTES IT PROPOSED TO TRIPLE THE AMOUNT OF MONEY NOW TRANSFERRED AMONG CLUBS ACCORDING TO BOSTON RED SOX GENERAL PARTNER JOHN HARRINGTON CURRENTLY REVENUESHARING IS RESTRICTED TO SPLITTING GATE RECEIPTS AND CABLETV INCOME 9401070073 940107 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EUROPEAN UNION RESIDENTS CONTINUE TO GET HASSLED AT BORDERS A YEAR AFTER THE 12COUNTRY TRADE BLOC BECAME A UNIFIED MARKET A CITIZENRIGHTS LOBBY SAID EURO CITIZEN ACTION SERVICE REPORTED THAT TRAVELERS IN THE FORMER EUROPEAN COMMUNITY STILL FACE BARRIERS TO THEIR FREEDOM OF MOVEMENT CUSTOMS POSTS REMAIN IN PLACE TRAIN FERRY AND AIRPLANE PASSENGERS ARE ASKED TO SHOW PASSPORTS AND NONEU NATIONALS WHO LEGALLY RESIDE IN ONE MEMBER STATE OFTEN MUST GET A VISA TO VISIT ANOTHER WORSE STILL THE GROUP SAID THE NINE EU STATES THAT PLEDGED UNDER THE TREATY TO ABOLISH INTERNAL BORDER CONTROLS MISSED THREE DEADLINES LAST YEAR AND SEEM LIKELY TO BREAK THEIR LATEST PLEDGE TO PUT THE ACCORD INTO EFFECT BY FEB 1 THUS THE LOBBY REVIVED ITS CAMPAIGN TO PRESS FOR A FRONTIERLESS BLOC BY GATHERING MORE ANECDOTAL EVIDENCE OF TRAVELERS' TANGLES AT THE BORDER SUCH PROBLEMS STEM PARTLY FROM CUSTOMS AGENCIES' EFFORTS TO FIGHT ILLEGAL IMMIGRATION AND SMUGGLING CHINA MOVED TO COUNTER A STRATEGY USED BY HONG KONG WOMEN TO OBTAIN CANADIAN CITIZENSHIP FOR THEIR CHILDREN BEIJING'S CONSULATE IN VANCOUVER SAID THAT UNDER A RECENT POLICY CHANGE HONG KONG RESIDENTS WILL BE BARRED FROM DUAL CITIZENSHIP WHEN CHINA TAKES CONTROL OF THE BRITISH COLONY IN 1997 NONRESIDENT BIRTHS IN THE VANCOUVER AREA TOTAL ABOUT 300 A YEAR OFTEN TO HONG KONG WOMEN WITH TOURIST VISAS CHILDREN BORN TO FOREIGNERS ARE ELIGIBLE FOR CANADIAN CITIZENSHIP AND AT AGE 18 MAY SPONSOR THEIR PARENTS FOR CITIZENSHIP THIS POLICY HAS BEEN USED BY RESIDENTS OF HONG KONG AS INSURANCE AGAINST POTENTIAL REPRESSION ONCE SOVEREIGNTY REVERTS TO CHINA THE PARIS SUBURB OF ISSYLESMOULINEAUX WILL INSTALL BRAILLE TERMINALS LINKED TO EIGHT TRAFFIC LIGHTS TO HELP BLIND PEOPLE CROSS BUSY INTERSECTIONS PUSHING A BUTTON ON THE DEVICE TURNS THE TRAFFIC SIGNAL RED WHEN THE BUTTON VIBRATES INDICATING A PEDESTRIAN MAY SAFELY CROSS THE TERMINALS ALSO ALLOW THE BLIND TO READ THE NAME OF THE STREET THE DIRECTION OF TRAFFIC AND THE STREET NUMBER OF THE NEAREST BUILDING CHINA'S XINHUA NEWS AGENCY DIDN'T HINT HOW IT KNOWS BUT SAID THE NUMBER OF CARS AND VANS SMUGGLED INTO THE COUNTRY LAST YEAR JUMPED 11 TO 100000 BRAZEN THIEVES HAVE BEEN SEEN DRAGGING VEHICLES ON HUGE FLOATS BEHIND SPEEDBOATS IMPORTED CARS ARE PRIZED AS STATUS SYMBOLS BY NEWLY RICH ENTREPENEURS IN THE BOOMING ECONOMY YET HIGH TARIFFS MAKE SMUGGLED CARS ATTRACTIVE EVEN AFTER CHINA ON JAN 1 SHARPLY CUT TAXES ON CARS LEVIES STILL DOUBLE THE PRICE OF AN IMPORTED AUTO MOREOVER LOOPHOLES FOR AVOIDING TAXES ON LUXURY CARS WERE CLOSED AND MONETARY REFORM THAT DEVALUED THE CURRENCY MADE IMPORTS MORE EXPENSIVE PROPOSALS IN 1993 FOR MANUFACTURING PROJECTS IN MALAYSIA SHRANK FOR THE THIRD CONSECUTIVE YEAR BOTH IN TERMS OF THE TOTAL NUMBER AND ESTIMATED VALUE THE GOVERNMENT RECEIVED 802 APPLICATIONS TO SET UP MANUFACTURING OPERATIONS DOWN 68 FROM A YEAR EARLIER AND THEIR VALUE TOTALED 694 BILLION OFF 20 PROPOSED FOREIGN INVESTMENT IN MANUFACTURING SANK 38 TO 282 BILLION ATTRIBUTED MAINLY TO STIFFER COMPETITION FOR FOREIGN CAPITAL AND TROUBLES IN MAJOR GLOBAL ECONOMIES DOMESTIC CAPITAL INVESTMENT WAS FLAT AS INDUSTRIES PURSUED FEWER AND SMALLER EXPANSIONS CHINA'S CENTRAL BANK AUTHORIZED CIRCULATION OF THE HONG KONG DOLLAR IN TWO SPECIAL ECONOMIC ZONES IN GUANGDONG PROVINCE THE PEOPLE'S BANK OF CHINA SAID THE BRITISH TERRITORY'S DOLLAR SHOULD BECOME THE MAIN CURRENCY IN SHENZHEN AND ZHUHAI BECAUSE THE ZONES IN SOUTHERN CHINA NEAR HONG KONG REQUIRE A DIFFERENT MONETARY SYSTEM THAN THAT USED IN INLAND CITIES THE HONG KONG UNIT ALREADY ISWIDELY USED BY BUSINESSES AND RESIDENTS IN THE ZONES WHICH HAVE HELPED PACE CHINA'S ECONOMIC BOOM IN RECENT YEARS US COMPANIES SPELLED OUT THEIR PREFERENCES FOR ANY EUROPEAN UNION LEGISLATION TO INVOLVE WORKERS IN CORPORATE PLANNING IN A PAPER SENT TO THE COMMISSION OF THE EU FORMERLY THE EUROPEAN COMMUNITY AN AMERICAN CHAMBER OF COMMERCE COMMITTEE OUTLINED PRINCIPLES FOR ANY EU RULES REQUIRING MULTINATIONAL COMPANIES TO CONSULT WORKERS ABOUT THE EMPLOYERS' PLANS THE PANEL WHICH REPRESENTS EUROPEAN UNITS OF MAJOR US COMPANIES OPPOSES EU LEGISLATION ON THE MATTER ARGUING THAT VOLUNTARY AND NONREGULATED METHODS ARE THE MOST EFFECTIVE WAYS OF FOSTERING WORKER PARTICIPATION BUT THE COMMITTEE SEEMED RESIGNED TO SOME FORM OF REGULATION EITHER THROUGH EU LEGISLATION OR A PANEUROPEAN ACCORD BETWEEN EMPLOYERS AND UNIONS THE PANEL SAID ANY EUROPEAN INITIATIVE SHOULD PROVIDE A BROAD FRAMEWORK LEAVING DETAILS TO BE WORKED OUT AT THE COMPANY LEVEL TO IMPROVE THE PHILIPPINES' IMAGE AQUINO AIRPORT IS URGING ITS EMPLOYEES TO REPLACE THEIR SNEER AND ZOMBIE LOOKS WITH SMILES THE GOVERNMENTRUN MANILA AIRPORT WHICH HAS A REPUTATION FOR INEFFICIENCY AND CORRUPTION BEGAN A CAMPAIGN TO TEACH PERSONNEL PROPER ETIQUETTE TOWARD PASSENGERS A BRITISH CONSUMER GROUP DEMANDED CLEARER FOOD LABELING BY PRODUCERS AND RESTAURANTS FOLLOWING THE COUNTRY'S FIFTH KNOWN DEATH IN THE PAST YEAR FROM AN ALLERGIC REACTION TO PEANUTS 9401070072 940107 BUSINESS BRIEF MAGNETEK INC CHARGE TO RESULT IN LOSS FOR FISCAL SECOND QUARTER MAGNETEK INC SAID THAT IT WILL REPORT A LOSS FOR THE SECOND QUARTER ENDED DEC 31 RESULTING FROM A RESTRUCTURING CHARGE THAT ISN'T EXPECTED TO EXCEED 60 MILLION AS PART OF THE RESTRUCTURING WHICH THE COMPANY ANNOUNCED ONLY IN BROAD TERMS LAST OCTOBER MAGNETEK IN LOS ANGELES YESTERDAY SAID IT HAS IDENTIFIED SIX OF ITS BUSINESS GROUPS AS CANDIDATES FOR DIVESTITURE THE OPERATIONS RANGING FROM PLANTS THAT MANUFACTURE HIGHVOLTAGE ELECTRIC COILS TO FACILITIES THAT PRODUCE POWER CONVERTERS MEDIUMPOWER TRANSFORMERS AND INDUSTRIAL BRAKES ACCOUNT FOR ABOUT 29 OF THE COMPANY'S ANNUAL 15 BILLION IN REVENUE THE RESTRUCTURING IS EXPECTED TO BE COMPLETED BY SEPTEMBER SOME OF THE OPERATIONS MAY BE SOLD FOR LESS THAN BOOK VALUE THE COMPANY INDICATED 9401070071 940107 MARKETING BRIEF MEDIA GENERAL INC FIRM TO SELL NEWSPAPER STAKE IN 627 MILLION TRANSACTION MEDIA GENERAL INC RICHMOND VA SAID IT AGREED TO SELL ITS 40 STAKE AND ITS SERIES A AND SERIES C PREFERRED STOCK IN GARDEN STATE NEWSPAPERS TO AN ENTITY CONTROLLED BY RICHARD B SCUDDER AND WILLIAM DEAN SINGLETON FOR ABOUT 627 MILLION MESSRS SINGLETON AND SCUDDER EXECUTIVES AT CLOSELY HELD MEDIANEWS GROUP IN HOUSTON ALREADY CONTROL 60 OF THE GARDEN STATE COMMUNITY NEWSPAPERS CHAIN THIS WEEK MEDIA GENERAL SAID GARDEN STATE NEWSPAPERS FAILED TO REDEEM THE SERIES A AND SERIES C PREFERRED STOCK BY JAN 1 AS REQUIRED UNDER THE ISSUE'S TERMS MEDIA GENERAL SAID IT WANTED TO SELL ITS GARDEN STATE NEWSPAPERS STAKE OR BUY THE REST OF THE CHAIN MEDIA GENERAL ALSO AGREED TO EXCHANGE ITS SERIES B PREFERRED STOCK IN GARDEN STATE NEWSPAPERS FOR THE 9 PREFERRED STOCK IN DENVER NEWSPAPERS INC HELD BY GARDEN STATE NEWSPAPERS MEDIA GENERAL STILL WOULD HOLD A WARRANT TO BUY 40 OF THE COMMON EQUITY OF DENVER NEWSPAPERS WHICH OWNS THE DENVER POST 9401070070 940107 MARKETING & MEDIA CDS OUTSELL CASSETTES IN '93 FOR FIRST TIME IN BUSINESS FOR THE FIRST TIME IN THE MUSIC BUSINESS COMPACT DISKS OUTSOLD CASSETTES IN 1993 ACCORDING TO YEAREND DATA RELEASED BY SOUNDSCAN INC A POINTOFSALE INFORMATION SYSTEM OVERALL UNIT SALES OF ALBUMS AND SINGLES ON ALL FORMATS WERE UP ABOUT 427 LAST YEAR WITH ABOUT 683 MILLION UNITS SOLD IN THE US COMPARED WITH 655 MILLION IN 1992 SOUNDSCAN SAID THIS INCREASE TRANSLATED TO A 10 TO 12 INCREASE IN SALES REVENUE TO THE MUSIC INDUSTRY IT'S A HEALTHY BUSINESS CONSIDERING THE ECONOMY'S NOT SO GREAT SAID MIKE SHALETT CHIEF OPERATING OFFICER OF SOUNDSCAN BASED IN HARTSDALE NY SOUNDSCAN WHICH MONITORS STORES ACCOUNTING FOR ABOUT 70 OF US SALES DOESN'T HAVE COMPLETE FIGURES ON 1991 MUSIC DISTRIBUTORS BEGAN SHIPPING MORE CDS THAN CASSETTES DURING THE FOURTH QUARTER OF 1992 BUT CONSUMERS DIDN'T RESPOND UNTIL THE NEXT YEAR OVERALL SALES OF ALBUM CASSETTES IN 1992 WERE 2996 MILLION UNITS OR 55 OF SALES COMPARED WITH 2482 MILLION UNITS OR 45 OF CDS IN 1993 3043 MILLION CDS OR 53 WERE SOLD COMPARED WITH 2677 MILLION CASSETTES OR 47 THE SALE OF SINGLES WAS STILL STRONG WITH 1108 MILLION UNITS SOLD COMPARED WITH 1073 THE YEAR BEFORE MOST OF THESE SINGLES WERE SOLD IN CASSETTE FORM 9401070069 940107 BUSINESS BRIEF MYCOGEN CORP AGRIGENETICS STAKE BOOSTED LOSS FOR QUARTER YEAR SEEN MYCOGEN CORP SAID IT WOULD TAKE FOURTHQUARTER CHARGES OF 34 MILLION RELATED TO ITS ACQUISITION OF AN ADDITIONAL 295 STAKE IN A JOINT VENTURE IT OWNS WITH LUBRIZOL CORP THE ACQUISITION FOR 7 MILLION IN CASH AND TWO MILLION SHARES OF MYCOGEN STOCK INCREASES MYCOGEN'S STAKE IN THE PARTNERSHIP MYCOGEN PLANT SCIENCES TO 80 THE TWO COMPANIES AGREED IN 1992 TO DEVELOP CROP VARIETIES GENETICALLY ENGINEERED TO BE INSECTRESISTANT AND LUBRIZOL SWAPPED A MAJORITY STAKE IN ITS AGRIGENETICS SEED UNIT FOR CASH AND STOCK VALUED AT 135 MILLION NOW MYCOGEN BASED IN SAN DIEGO SAYS IT HAS AGREED TO PURCHASE LUBRIZOL'S REMAINING STAKE OVER TIME LUBRIZOL'S OWNERSHIP STAKE IN MYCOGEN INCREASES TO ABOUT 32 FROM ABOUT 25 MYCOGEN SAID IT WILL REPORT AN OPERATING LOSS FOR THE QUARTER AND THAT COMBINED WITH THE ONETIME ITEMS THE COMPANY'S NET LOSS FOR 1993 WILL SURPASS THAT OF 1992 WHEN A 304 MILLION LOSS WAS POSTED IN NASDAQ STOCK MARKET TRADING YESTERDAY MYCOGEN SHARES FELL 50 CENTS TO 1150 9401070068 940107 BUSINESS BRIEF CIRCUIT CITY SHARES FALL 20 ON FORECAST OF FLAT YEARLY NET RICHMOND VA CIRCUIT CITY STORES INC REPORTED STRONG SALES GAINS FOR THE CHRISTMAS SEASON BUT THE ELECTRONICS RETAILER'S STOCK PLUNGED 20 ON THE NEWS THAT A PREVIOUSLY ANNOUNCED EXPANSION PLAN AND MORE PRICE CUTTING WOULD RESULT IN VIRTUALLY NO EARNINGS GROWTH IN FISCAL 1995 THE COMPANY THE NATION'S LARGEST SPECIALTY RETAILER OF BRANDNAME CONSUMER ELECTRONICS AND MAJOR APPLIANCES REPORTED THAT DECEMBER SALES AT STORES OPEN ONE YEAR OR LONGER JUMPED 8 FROM THE SAME PERIOD IN 1992 BETTER THAN THE COMPANY HAD EXPECTED TOTAL SALES INCREASED 25 TO 7138 MILLION FROM DECEMBER 1992 HOWEVER THE COMPANY'S SHARES FELL AFTER IT ANNOUNCED THAT IT DOESN'T EXPECT EARNINGS GROWTH IN FISCAL 1995 WHICH BEGINS MARCH 1 ANALYSTS HAD BEEN ESTIMATING THAT EARNINGS FOR FISCAL 1994 ENDING FEB 28 WILL BE ABOUT 140 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CIRCUIT CITY'S STOCK FELL 450 TO 17625 IN HEAVY TRADING DESPITE STRONG EARNINGS OF LATE CIRCUIT CITY'S SHARES HAVE FALLEN RECENTLY FROM A HIGH IN THE LAST YEAR OF ABOUT 33 BECAUSE OF CONCERNS OVER GROWING COMPETITION IN ELECTRONICS RETAILING THE STOCK OF RIVAL BEST BUY CO ALSO WAS BATTERED YESTERDAY TUMBLING 750 OR 16 TO CLOSE AT 3975 IN HEAVY BIG BOARD TRADING RICHARD L SHARP CIRCUIT CITY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID YESTERDAY THAT THIS YEAR HIS COMPANY PLANS A MORE AGGRESSIVE MARKETING APPROACH TO INCREASE ITS MARKET SHARE WHICH WILL INCLUDE LOWER PRICES ESPECIALLY IN COMPETITIVE MARKETS CIRCUIT CITY IS CURRENTLY LOCKED IN A BATTLE FOR NEW MARKETS WITH BEST BUY AND OTHER ELECTRONICSSTORE CHAINS MR SHARP SAID CIRCUIT CITY EXPECTS THAT REDUCTIONS IN GROSS PROFIT MARGINS AND INCREASED COSTS ASSOCIATED WITH THE ACCELERATION IN STORE EXPANSION PLANS WILL RESULT IN NO MATERIAL EARNINGS GROWTH IN FISCAL 1995 LAST MONTH CIRCUIT CITY SAID IT PLANNED TO OPEN 180 NEW SUPERSTORES IN THE NEXT THREE YEARS 9401070067 940107 BUSINESS BRIEF DELTA AIR LINES PETITION IS FILED WITH DOT ON LONDON ROUTE DECISION DELTA AIR LINES SAID IT FILED A PETITION WITH THE FEDERAL APPEALS COURT IN THE DISTRICT OF COLUMBIA CHALLENGING A DECISION BY THE DEPARTMENT OF TRANSPORTATION TO GIVE AMR CORP'S AMERICAN AIRLINES TWO NEW ROUTES TO LONDON THE DOT MOVE LAST NOVEMBER WAS A BLOW TO DELTA AND TO SALT LAKE CITY WHERE THAT AIRLINE HAD PROPOSED ESTABLISHING ONE OF THE ROUTES AT ITS WESTERNMOST HUB INSTEAD THE DOT SELECTED NASHVILLE TENN AND THE RALEIGHDURHAM AREA OF NORTH CAROLINA AMERICAN AIRLINES PLANS TO BEGIN FLYING BOTH ROUTES MAY 26 LAST MONTH DELTA APPEALED THE DOT DECISION BUT THE AGENCY REJECTED THAT REQUEST AS PREVIOUSLY REPORTED THE DOT SAID IT CHOSE THE TWO MARKETS BECAUSE EACH SERVES MORE PEOPLE THAN SALT LAKE CITY BUT IN A STATEMENT YESTERDAY DELTA SAID THE DOT'S CHOICE IGNORES THE LACK OF LONDON SERVICE IN SALT LAKE CITY 9401070066 940107 ECONOMY UNDERFUNDING OF PENSIONS ROSE 40 IN '92 US SAYS WASHINGTON UNDERFUNDING IN FEDERALLY INSURED PENSION PLANS CLIMBED NEARLY 40 TO AN ESTIMATED 53 BILLION IN 1992 INCREASING THE NEED FOR LEGISLATION TO FORCE A NARROWING OF THE FUNDING GAPS THE GOVERNMENT INSURER SAID PENSION BENEFIT GUARANTY CORP EXECUTIVE DIRECTOR MARTIN SLATE SAID THAT WHILE THE MAJORITY OF SINGLEEMPLOYER PENSION FUNDS INSURED BY THE AGENCY ARE FUNDED FULLY THE FIGURE SENDS A CLEAR SIGNAL THAT WE HAVE A GROWING PROBLEM DESPITE THE PBGC'S OWN DEFICIT OF 27 BILLION IN 1992 HOWEVER THE AGENCY HAS AMPLE ASSETS TO PAY BENEFITS FOR MANY YEARS TO COME HE SAID ABOUT 72 OF THE UNDERFUNDING IS IN PLANS SPONSORED BY 50 COMPANIES AS PREVIOUSLY REPORTED ESPECIALLY IN THE STEEL AUTO TIRE AND AIRLINE INDUSTRIES LEGISLATION PROPOSED LATE LAST YEAR BY THE CLINTON ADMINISTRATION WOULD REQUIRE EMPLOYERS WITH UNDERFUNDED PLANS TO SPEED UP CONTRIBUTIONS TO THEIR PENSION FUNDS IT ALSO WOULD BOOST INSURANCE PREMIUMS FOR PLANS THAT POSE THE GREATEST RISK OF FAILURE THAT WOULD REQUIRE THE PBGC TO STEP IN AND PROVIDE LIMITED PENSION BENEFITS FOR THE COMPANY'S CURRENT AND FUTURE RETIREES ABOUT THREEFOURTHS OF THE UNDERFUNDING WHICH ROSE FROM 38 BILLION IN 1991 IS IN PLANS SPONSORED BY FINANCIALLY HEALTHY COMPANIES AND DOESN'T NECESSARILY PRESENT A RISK TO PLAN PARTICIPANTS OR THE PBGC THE AGENCY SAID BUT ABOUT 14 BILLION IN UNDERFUNDING IN THE REMAINING PLANS INVOLVES ABOUT 12 MILLION WORKERS AND RETIREES AT COMPANIES WITH BELOW INVESTMENTGRADE RATINGS THE PBGC SAID 9401070065 940107 PEPPERAND SALT TODAY A MILLIONAIRE I WISH THAT I COULD THINK OF IT MY COMPLIMENTS TO THE CEO 9401070064 940107 BUSINESS BRIEF CARNIVAL CORP CRUISE LINE CONCERN'S PROFIT ROSE 16 IN ITS 4TH QUARTER CARNIVAL CORP SAID FISCAL FOURTHQUARTER EARNINGS ROSE 16 REFLECTING CONTINUED IMPROVEMENT IN REVENUE YIELDS NET INCOME ROSE TO 501 MILLION OR 35 CENTS A SHARE FROM 431 MILLION OR 31 CENTS A SHARE FOURTHQUARTER REVENUE CLIMBED 47 TO 3257 MILLION FROM 311 MILLION IN THE 1992 FOURTH QUARTER FOR THE FISCAL YEAR ENDED NOV 30 NET INCREASED 15 TO 3182 MILLION OR 225 A SHARE FROM 2766 MILLION OR 196 A SHARE A YEAR EARLIER REVENUE CLIMBED 57 TO 156 BILLION FROM 147 BILLION A YEAR EARLIER THE MIAMI CRUISE LINE COMPANY SAID THE FISCALYEAR RECORD RESULTS WERE AIDED BY THE INTRODUCTION OF ADVANCEPURCHASE DISCOUNT PROGRAMS THAT ENABLED EACH LINE TO BETTER MANAGE ITS YIELDS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CARNIVAL SHARES CLOSED AT AT 46375 DOWN 50 CENTS 9401070063 940107 NESTLE ACQUISITION IN POLAND ZURICH NESTLE SA THE SWISSBASED FOOD AND BEVERAGES CONCERN SAID IT HAS TAKEN A 47 STAKE IN GOPLANA POLAND'S SECONDLARGEST CHOCOLATE AND CONFECTIONERY MAKER THE TRANSACTION IS VALUED AT 43 MILLION NESTLE SAID UNDER THE ACQUISITION NESTLE WILL BE ALLOWED TO INCREASE ITS STAKE TO 51 POLISH STATE ENTITIES CURRENTLY CONTROL 47 OF GOPLANA WHILE WORKERS CONTROL 6 A NESTLE SPOKESMAN SAID GOPLANA LOCATED IN POZNAN EMPLOYS AROUND 2400 PEOPLE AND HAD SALES IN 1993 OF 64 MILLION 9401070062 940107 LWT NOT ABLE TO JOIN YORKSHIRE MAY FACE TAKEOVER SPECIAL TO THE WALL STREET JOURNAL LONDON LWT HOLDINGS PLC SAID ITS MERGER TALKS WITH YORKSHIRETYNE TEES TELEVISION HOLDINGS PLC HAVE BEEN DISCONTINUED THE MERGER HAD BEEN SOUGHT BY LWT THE PARENT OF LONDON WEEKEND TELEVISION IN AN ATTEMPT TO WARD OFF A HOSTILE BID FOR LWT FROM GRANADA GROUP PLC THE BREAKDOWN OF THE TALKS BETWEEN THE BRITISH BROADCASTERS ENHANCES THE CHANCE OF GRANADA SUCCEEDING IN ITS BID FOR LWT REACTING TO THE NEWS THE SHARES OF LWT ROSE 22 PENCE 32736 CENTS TO CLOSE AT 648 PENCE 9642 AFTER THE ANNOUNCEMENT SIR CHRISTOPHER BLAND CHAIRMAN OF LWT SAID IN AN INTERVIEW THAT A PROFIT FORECAST TO BE RELEASED NEXT WEEK WILL HELP LWT DEFEND ITSELF AGAINST GRANADA'S HOSTILE BID MR BLAND SAID HE WILL USE THE FORECAST PAIRED WITH THE COMPANY'S PAST RECORD TO CONVINCE SHAREHOLDERS THAT GRANADA'S BID FOR THE COMPANY IS TOO LOW GRANADA LAUNCHED A TAKEOVER DEC 6 WITH AN OFFER THAT VALUED LWT AT ABOUT 660 MILLION 9821 MILLION MR BLAND WOULDN'T COMMENT ON WHETHER HE WOULD CONSIDER ACCEPTING A LARGER BID FROM GRANADA SAYING ONLY THAT THE CURRENT BID WAS INADEQUATE MR BLAND HAD BEEN EAGER TO FORM AN ALLIANCE WITH YORKSHIRE TV AS WELL AS OTHERS AS PART OF A STRATEGY TO STRENGTHEN AND EXPAND HIS GROUP HE WAS TRYING TO CAPITALIZE ON REGULATORY RESTRICTIONS ON ITV COMPANIES THAT BLOCK ONE ITV FRANCHISE HOLDER FROM OWNING MORE THAN TWO OTHERS GRANADA ALREADY HAS ONE FRANCHISE IN A NEWS RELEASE LWT AND YORKSHIRE SAID THAT ALTHOUGH THEY RECOGNIZED THE COMMERCIAL ARGUMENTS FOR A CLOSER RELATIONSHIP THEY WERE UNABLE TO MEET THE INDEPENDANTTELEVISIONNETWORK OR ITV OWNERSHIP RULES AT THE DECEMBER OFFER GRANADA OWNED 1751 OF LWT'S SHARES LAST WEEK GRANADA SAID IT ACCUMULATED AN ADDITIONAL 231 OF LWT SHARES AND IT EXTENDED THE OFFER UNTIL WEDNESDAY GRANADA IS A LEISURE COMPANY WITH MOTORWAY SERVICES BOWLING CENTERS NIGHTCLUBS THEME PARKS TRAVEL SERVICES AND RENTAL BUSINESSES BUT IT IS GAINING PROMINENCE FOR ITS TELEVISION OPERATIONS WHICH INCLUDE PART OF THE UK INDEPENDENT TELEVISION NETWORK AND A STAKE IN BRITISH SKY BROADCASTING 9401070060 940107 ECONOMY LABOR SECRETARY'S EDUCATED GUESS' ON JOBS DATA IGNITES BOND MARKETS BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LABOR SECRETARY ROBERT REICH LEARNED AN IMPORTANT LESSON WHEN HE TALKS THE BOND MARKETS LISTEN IN A TELECONFERENCE BROADCAST FROM THE US INFORMATION AGENCY IN WASHINGTON TO AN ECONOMIC CONFERENCE IN PARIS MR REICH WAS ASKED ABOUT THE DECEMBER UNEMPLOYMENT FIGURES A CLOSELY WATCHED ECONOMIC INDICATOR TO BE RELEASED TODAY I'M SURE YOU HAVE SEEN THEM CAN YOU GIVE US AN INDICATION OF WHAT THEY SHOW MR REICH WAS ASKED HIS REPLY I CAN'T TELL YOU EXACTLY WHAT THEY WILL SHOW BUT I THINK THEY WILL SHOW EMPLOYMENT RISING IN THE AREA OF PROBABLY ANOTHER 160 THOUSAND TO 200000 MR REICH'S RESPONSE INSTANTLY REPORTED BY FINANCIAL WIRE SERVICES GAVE SOME TRADERS THE IMPRESSION THAT HE HAD ACTUALLY SEEN THE EMPLOYMENT FIGURES AND WAS GIVING THE MARKETS AN UNPRECEDENTED HEADSUP THE BOND MARKET WENT INTO A TIZZY SHOOTING UP ON THE NEWS THAT JOB GROWTH IN DECEMBER WAS BELOW WHAT MARKET ANALYSTS WERE EXPECTING BOND PRICES RISE AND INTEREST RATES FALL ON BAD ECONOMIC NEWS BECAUSE THAT IS SEEN AS LESSENING THE RISK OF INFLATION TIMING MADE MATTERS WORSE MR REICH'S STATEMENTS TOOK PLACE AT ABOUT 8 AM NEW YORK TIME AT 830 THE LABOR DEPARTMENT RELEASED ITS WEEKLY REPORT ON CLAIMS FOR UNEMPLOYMENT BENEFITS WHICH SHOWED A HUGE 70000 INCREASE FOR LAST WEEK THAT BAD NEWS SENT THE MARKET SOARING EVEN MORE THE COMBINATION HELPED PUSH INTEREST RATES ON LONGTERM TREASURY SECURITIES DOWN TO 634 FROM 640 KATHERINE ABRAHAM HEAD OF THE LABOR DEPARTMENT'S BUREAU OF LABOR STATISTICS INSISTED THAT MR REICH WAS SIMPLY MAKING A FORECAST AND DIDN'T KNOW FOR SURE HOW MANY JOBS WERE CREATED IN THE ECONOMY DURING DECEMBER FOR SECURITY REASONS THE BUREAU SAID IT DOESN'T SHARE ITS FIGURES WITH THE LABOR SECRETARY UNTIL THE MORNING THEY ARE RELEASED MARY MEAGHER MR REICH'S SPOKESWOMAN CALLED HIS STATEMENTS AN EDUCATED GUESS WE SUSPECT STRONGLY THAT NEXT WEEK'S DATA WILL REGISTER A SIGNIFICANT DECLINESAID MARILYN SCHAJA DONALDSON LUFKIN & JENRETTE CORP MONEYMARKET ECONOMIST THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS CONSIDERED A MORE RELIABLE MEASURE OF LABORMARKET CONDITIONS ROSE ONLY 6500 TO 328500 DURING THE LATEST PERIOD THE FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9401070059 940107 CORPORATE FOCUS STRIKE FEARS IMPERIL GM'S BID TO REV UP ITS TURNAROUND SMITH'S OPTIMISTIC INTERVIEW CONTRASTS WITH UAW'S TRUCKPLANT THREAT BY ROBERT L SIMISON AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT THE UNITED AUTO WORKERS UNION IS THREATENING TO STRIKE A KEY GENERAL MOTORS CORP TRUCK PLANT AS SOON AS TUESDAY UNDERSCORING THE CHALLENGE GM PRESIDENT JOHN F SMITH JR FACES AS HE TRIES TO KICK THE NO 1 AUTO MAKER'S TURNAROUND INTO HIGHER GEAR IN AN INTERVIEW YESTERDAY MR SMITH SAID THERE IS SOME NOISE AND SOME TENSION IN RELATIONS BETWEEN THE COMPANY AND THE UAW BUT HE MAINTAINED THAT GENERALLY WE'RE WORKING VERY WELL TOGETHER WE NEED TO OVER TIME HOWEVER EVEN AS MR SMITH SPOKE UAW OFFICIALS ANGRY AT THE SLOW PROGRESS OF PLANTLEVEL CONTRACT TALKS WERE STARTING THE COUNTDOWN FOR A STRIKE AT GM'S BIG SHREVEPORT LA ASSEMBLY PLANT THAT BUILDS CHEVROLET S10 AND GMC SONOMA PICKUPS THE TRUCKS REDESIGNED FOR LAST FALL ARE AMONG GM'S LARGESTSELLING VEHICLES THE FLAREUP AT SHREVEPORT COMING JUST TWO MONTHS AFTER GM AND THE UAW REACHED A NEW NATIONAL CONTRACT WITHOUT A STRIKE THREAT CAST A CLOUD OVER MR SMITH'S EFFORTS TO HIGHLIGHT GM'S PROGRESS DURING 1993 AND ITS IMPROVED OUTLOOK GM WAS IN THE BLACK OVERALL FOR 1993 AND WILL SHOW MORE IMPROVEMENT IN 1994 MR SMITH SAID DURING HIS INTERVIEW AT THE DETROIT AUTO SHOW THE GM PRESIDENT ALSO SAID GM EUROPE WAS PROFITABLE FOR 1993 AND SOLD SOME 15000 MORE VEHICLES THAN FORECAST IN DECEMBER HOWEVER MR SMITH CAUTIONED THAT THE EUROPEAN MARKET OUTLOOK REMAINS WEAK THE REORGANIZATION OF GM'S NORTH AMERICAN OPERATIONS AND REFOCUSING OF ITS PARTSPROCUREMENT EFFORTS HAVE CUT THE COSTS OF DEVELOPING NEW PRODUCTS 20 TO 30 GM'S NORTH AMERICAN PASSENGERCAR BUSINESS IS STILL FAR FROM HEALTHY BUT GM CAN'T MOVE ANY FASTER TO REPLACE AGING AND UNPROFITABLE PRODUCTS BECAUSE WE HAVE AS MUCH ON OUR PLATTER AS WE CAN HANDLE FROM A HUMANRESOURCES STANDPOINT MR SMITH LATER TOLD THE ASSOCIATED PRESS THAT GM WILL HIRE AS MANY AS 2000 NEW ENGINEERS THIS YEAR BECAUSE WE NEED THOSE RESOURCES MR SMITH DECLINED TO FORECAST GM'S PROFITS FOR 1994 EXCEPT TO SAY THEY WOULD BE BETTER THAN IN 1993 HE REITERATED THAT NORTH AMERICAN OPERATIONS ARE EXPECTED TO SHOW A PROFIT IN 1994 MR SMITH ALSO SAID THE AVAILABILITY OF CAPITAL ISN'T ANY LONGER A CONSTRAINT IN DEVELOPING NEW PRODUCTS IN 1991 GM DELAYED SEVERAL NEWPRODUCT PROGRAMS FOR LACK OF CASH CASH FLOW HAS BEEN VERY FAVORABLE EXCELLENT MR SMITH SAID THAT REFLECTS REDUCED LOSSES LOWER CAPITAL SPENDING AND IMPROVED TURNOVER OF INVENTORIES MR SMITH WAS SWEPT IN AS GM'S CHIEF EXECUTIVE OFFICER IN NOVEMBER 1992 IN A COUP BY GM'S INDEPENDENT DIRECTORS AT A TIME WHEN GM WAS HEMORRHAGING 1 BILLION IN CASH EVERY QUARTER HIS FIRST MANDATE WAS TO STOP THE BLEEDING BY CUTTING COSTS WHILE MR SMITH IS CAREFUL NOT TO MAKE BOLD CLAIMS FOR A TURNAROUND IT'S CLEAR GM IS WELL OFF THE CRITICAL LIST HOWEVER MR SMITH IS QUICK TO SAY THAT GM HAS A LONG WAY TO GO TO REGAIN ITS FORMER PROFITABILITY AND FINANCIAL STRENGTH THE COMPANY MUST BOLSTER ITS BALANCE SHEET WITH BILLIONS IN NEW CASH TO PREPARE FOR THE NEXT AUTOINDUSTRY DOWNTURN MR SMITH SAID TO DO THAT HE SAID WE MUST GET LEAN AND DRASTICALLY IMPROVE PRODUCTIVITY GETTING LEAN OFTEN TRANSLATES INTO FEWER UAW JOBS UAW LEADERS HAD PRAISED MR SMITH'S EFFORTS TO IMPROVE LABORMANAGEMENT RELATIONS AND MR SMITH AND HIS AIDES JUSTIFIED ACCEPTING A COSTLY NEW CONTRACT LAST NOVEMBER BY ARGUING THAT PRESERVING A GOOD RELATIONSHIP WITH THE UAW WAS WORTH THE SACRIFICE OF AN UNFAVORABLE LABOR DEAL MR SMITH'S EFFORT TO MAKE THE BEST OF THE NEW AGREEMENT BY ACCELERATING PRODUCTIVITY IMPROVEMENTS AT GM PLANTS HAS BEGUN TO PROVOKE A UNION BACKLASH IN DECEMBER THE UAW'S TOP BARGAINER AT GM STEPHEN P YOKICH UNLEASHED A TIRADE AT MR SMITH DURING THE SIGNING CEREMONY FOR THE NATIONAL CONTRACT COMPLAINING THAT GM BARGAINERS WERE PUTTING UNDUE PRESSURE ON LOCAL UNIONS TO MAKE CONCESSIONS AND AGREE TO BIG WORK FORCE CUTS RAISING PRODUCTIVITY IS SOMETHING EVERYBODY CAN AGREE ON IN THE ABSTRACT SAID HARLEY SHAIKEN A PROFESSOR AT UNIVERSITY OF CALIFORNIA AT BERKELEY BUT IT GETS MUCH MORE DIFFICULT WHEN YOU GET DOWN TO SPECIFICS SHREVEPORT UNION OFFICIALS SAY ONE OF THEIR COMPLAINTS IS THAT GM IS TRYING TO RUN THE PLANT WITH TOO FEW WORKERS ESSENTIALLY PUSHING FOR IMPROVED PRODUCTIVITY SHREVEPORT CURRENTLY HAS ABOUT 2300 HOURLY EMPLOYEES ON TWO SHIFTS SHREVEPORT IS ONE OF 48 UAWREPRESENTED GM PLANTS THAT HAVEN'T CONCLUDED A LOCAL AGREEMENT GM HAS 112 UAWREPRESENTED FACTORIES WE ARE HOPEFUL WE CAN GET THIS RESOLVED A GM SPOKESWOMAN SAID ADDING THAT TALKS ARE CONTINUING THE SHREVEPORT FACTORY LIKELY WON'T BE THE LAST GM OPERATION TO BRIDLE AT MR SMITH'S PROGRAM OF DOING MORE WITH LESS BUT MR SMITH SAID HE'S DETERMINED THAT GM MUST DO THAT TO REESTABLISH ITSELF AS A STRONG PROFITABLE COMPANY ANOTHER ASPECT OF MR SMITH'S STRATEGY IS TO USE JOINT VENTURES TO EXPAND GM'S BUSINESS WITH LESS CAPITAL INVESTMENT YESTERDAY FOR EXAMPLE GM'S PARTSMAKING UNIT SAID IT IS SETTING UP JOINT VENTURES WITH CHINA TO SELL ENGINEMANAGEMENT SYSTEMS THERE AND A SEPARATE VENTURE WITH ALLIEDSIGNAL INC TO PURSUE DEVELOPMENT AND PRODUCTION OF ADVANCED MATERIALS FOR USE IN CATALYTIC CONVERTERS WHICH SCRUB POLLUTANTS OUT OF ENGINE EXHAUST IN A SEPARATE INITIATIVE MR SMITH SAID GM EXECUTIVES ARE WORKING ON A NEW MORE RIGOROUS METHOD FOR MEASURING THE PERFORMANCE OF EACH OPERATING UNIT MANAGERS WILL BE EXPECTED TO PRODUCE PROFITS EQUIVALENT TO 125 OR MORE OF THE VALUE OF ASSETS INVESTED IN THEIR OPERATIONS AT GM'S SATURN SUBSIDIARY THAT TRANSLATES TO A PROFIT OF ABOUT 300 MILLION A YEAR ON ROUGHLY 25 BILLION IN ASSETS GM WON'T DISCLOSE THE ASSET BASE IT WILL USE IN MEASURING OVERALL OPERATIONS THE RETURNONNETASSETS MEASUREMENT IS USED BY SEVERAL OTHER COMPANIES MR SMITH SAID GM MANAGERS SAY THE MEASUREMENT PUSHES THEM TO SPEND LESS ON NEW EQUIPMENT AND BUILDINGS BECAUSE THE LARGER THE BASE OF ASSETS THE MORE PROFIT REQUIRED TO HIT THE RETURN TARGET THIS COMPANY FOR TOO LONG WAS AN OPERATING INCOMEDRIVEN COMPANY HEIDI KUNZ THE NEW YORKBASED TREASURER OF GM SAID IN A SEPARATE INTERVIEW RECENTLY MS KUNZ'S OFFICE HAS LED THE STUDY OF HOW GM IS TO MEASURE SUCCESS THE COMPANY HAS BEEN VERY PROFITABLE IN THE PAST IN DOLLARS BUT NOT IN RELATION TO ASSETS OR SALES THE PROFITS WERE SO LARGE IT WAS INEBRIATING SHE SAID MR SMITH WON'T REVEAL WHAT KIND OF PROFIT GM WOULD EARN IF IT HIT HIS TARGET FOR RETURN ON NET ASSETS BUT MR SMITH ALSO HAS SAID THAT GM EVENTUALLY SHOULD SHOW FIVE CENTS OF PROFIT FOR EVERY DOLLAR OF SALES ON GM'S 132 BILLION OF 1992 REVENUE THAT PROFIT MARGIN WOULD HAVE YIELDED A RECORD 66 BILLION IN NET INCOME 9401070058 940107 BUSINESS BRIEF GERRITY OIL & GAS CORP SEARCH FOR A POTENTIAL BUYER BEGUN LAST OCTOBER IS ENDED GERRITY OIL & GAS CORP DENVER SAID IT'S TERMINATING THE SEARCH FOR POTENTIAL BUYERS OF THE COMPANY THAT WAS STARTED LAST OCTOBER IN A PREPARED STATEMENT THE COMPANY SAID AFTER INVESTIGATING THE POSSIBILITY OF SELLING THE COMPANY OVER THE PAST THREE MONTHS THE BOARD OF DIRECTORS HAS DETERMINED BASED ON INTERNAL VALUATIONS AND ON THE ADVICE OF SENIOR MANAGEMENT THE INDICATIONS OF INTEREST WHICH HAVE BEEN RECEIVED AND CURRENT INDUSTRY FACTORS THAT GREATER SHAREHOLDER VALUE IS LIKELY TO BE ACHIEVED BY CONTINUING AS AN INDEPENDENT COMPANY RATHER THAN BY SELLING OR MERGING THE COMPANY IN TODAY'S CIRCUMSTANCES IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY GERRITY CLOSED AT 12 DOWN 125 CENTS FOR THE NINE MONTHS ENDED SEPT 30 THE COMPANY HAD NET INCOME OF 98 MILLION OR 58 CENTS A SHARE ON REVENUE OF 501 MILLION 9401070057 940107 BUSINESS BRIEF WAHLCO ENVIRONMENTAL SYSTEMS INC COMPANY TO SHUT 2 UNITS TAKE A CHARGE OF 10 MILLION WAHLCO ENVIRONMENTAL SYSTEMS INC ANNOUNCED SEVERAL RESTRUCTURING MOVES IT SAID WOULD RESULT IN A FOURTHQUARTER CHARGE OF ABOUT 10 MILLION OR 37 CENTS TO 42 CENTS A SHARE THE CHARGE ACCOUNTS FOR COSTS ASSOCIATED WITH THE PHASING DOWN IN 1994 OF THE COMPANY'S WAHLCO POWER PRODUCTS UNIT IN FAIRMONT WVA AND WAHLCO ENGINEERED PRODUCTS CANADA UNIT IN MONTREAL MANUFACTURING EARMARKED FOR CANADA WILL BE TAKEN OVER BY THE COMPANY'S LEWISTON MAINE FACILITY THE MOVES WILL CUT A TOTAL OF ABOUT 105 JOBS OR ABOUT 13 OF THE COMPANY'S WORK FORCE IN THE 1992 FOURTHQUARTER THE SANTA ANA CALIF COMPANY WHICH PROVIDES AIRPOLLUTIONCONTROL SYSTEMS FOR UTILITIES POSTED A NET LOSS OF 48 MILLION OR 27 CENTS A SHARE IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY WAHLCO SHARES ROSE 25 CENTS OR 56 TO 475 9401070056 940107 LLOYD'S OF LONDON AMENDS SETTLEMENT WITH INVESTORS LONDON AP LLOYD'S OF LONDON AMENDED ITS OFFER TO SETTLE CLAIMS FROM HARDHIT INVESTORS CORRECTING A CALCULATION ERROR THE INSURANCE MARKET ALSO EXTENDED ITS DEADLINE FOR ACCEPTANCE OF THE 900 MILLIONPOUND 134 BILLION SETTLEMENT BY TWO WEEKS TO FEB 14 LLOYD'S SAID NEARLY HALF OF THE 21000 NAMES AS LLOYD'S INVESTORS ARE CALLED WILL RECEIVE LESS THAN THEIR ORIGINAL OFFER SOME 12000 NAMES WILL RECEIVE AN INCREASED OFFER LLOYD'S SAID THE CHANGES INVOLVE 20 BILLION POUNDS BUT THE TOTAL AMOUNT OF THE OFFER REMAINS UNCHANGED THERE IS NO QUESTION OF INCREASING THE OFFER AND IF THE OFFER FAILS WE SHALL CONTINUE TO HELP THE NAMES IN SETTLING THEIR LOSSES BUT IT WILL NOT BE IN THE FORM OF ANOTHER OFFER LLOYD'S CHAIRMAN DAVID ROWLAND SAID MANY NAMES ARE FACING BANKRUPTCY AS A RESULT OF INSURANCE LOSSES IN THE LATE 1980S AND EARLY 1990S GROUPED INTO SYNDICATES THAT UNDERWRITE INSURANCE POLICIES THE NAMES RISKED UNLIMITED PERSONAL FINANCIAL LIABILITY IN EXCHANGE FOR THE CHANCE TO SHARE PROFITS MANY BLAME MISMANAGEMENT AND LACK OF REGULATION WITHIN THE INSURANCE MARKET FOR THE LOSSES MEMBERS OF LLOYD'S WHO ACCEPT THE SETTLEMENT OFFER WILL GIVE UP THE RIGHT TO BRING LEGAL ACTION AGAINST LLOYD'S FOR DAMAGES 9401070055 940107 ZALE'S SAMESTORE SALES ROSE DALLAS ZALE CORP SAID ITS SALES AT STORES OPEN MORE THAN A YEAR ROSE 69 IN DECEMBER FROM A YEAR EARLIER THE JEWELRY RETAILER WHICH DIDN'T PROVIDE FIGURES ON ITS TOTAL SALES DURING THE MONTH SAID THE INCREASE IN SAMESTORE SALES WOULD BE OFFSET BY CONTINUING PRESSURE ON THE COMPANY'S PROFIT MARGINS 9401070054 940107 COMMODITIES GOLD FUTURES PRICES SETTLE LOWER AMID CONCERN ABOUT PROSPECTS OF MIDEAST SYNDICATES' SELLING BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GOLD FUTURES PRICES SETTLED LOWER AFTER A DAY OF TURBULENT TRADING SPAWNED BY CONCERNS ABOUT THE PROSPECTS OF SELLING BY MIDDLE EASTERN INVESTOR SYNDICATES AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS DOWN 2 TO 39010 AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVER FUTURES CONTRACT ROSE 52 CENTS TO 5137 AN OUNCE MUCH OF THE STRENGTH IN A PRECIOUSMETALS PRICE RALLY OVER THE PAST TWO MONTHS HAS FLOWED FROM THE MIDDLE EAST WHERE INVESTOR SYNDICATES HAVE BEEN BUYING LARGE QUANTITIES OF SILVER BULLION THESE SYNDICATES ANALYSTS SAY HAVE BEEN HOARDING THE SILVER AS A HEDGE AGAINST POSSIBLE DEVALUATION OF THEIR CURRENCY THE RIYAL YET RECENT AUSTERITY MEASURES TAKEN BY SAUDI ARABIA APPEAR TO HAVE EASED THE PROSPECT OF DEVALUATION OF THE CURRENCY SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH AS A RESULT THERE HAS BEEN SOME LIQUIDATION OF SILVER BY THE MIDDLE EASTERN SYNDICATES SILVER HAS BEEN THE LEADER MR O'NEILL SAID MOST OF THE STRENGTH AND WEAKNESS THAT HAS DEVELOPED IN THE PRECIOUSMETALS MARKET RECENTLY HAS FOLLOWED SILVER SELLING BY THE MIDDLE EASTERN SYNDICATES AND OTHERS PUSHED FUTURES PRICES DOWN SHARPLY AT THE COMEX EARLY YESTERDAY AS PRICES MOVED LOWER PREARRANGED ORDERS TO SELL FUTURES CONTRACTS WERE ACTIVATED ACCELERATING THE PACE OF THE DECLINE BUT BY THE END OF THE TRADING SESSION PRICES RALLIED BACK AS BUYERS RETURNED TO THE MARKET GOLD TRADED ALL THE WAY DOWN TO 385 IN THE FEBRUARY CONTRACT BUT IT REBOUNDED NICELY FROM THAT LEVEL SAID DENISE GIORDANO DIRECTOR OF BULLION TRADING AT SWISS BANK CORP I THINK THIS IS HEALTHY FOR THE MARKET THE PRICE OF GOLD HAS BEEN BUILDING MORE OR LESS STEADILY SINCE EARLY LAST YEAR IT ROSE AS HIGH AS 414 AN OUNCE LAST SUMMER BEFORE FALLING AGAIN TO THE MID300 RANGE A SPATE OF POSITIVE GOVERNMENT ECONOMIC DATA HAS RECENTLY BROUGHT THE PRICE BACK FOR A SECOND TRY AT 400ANOUNCE MOST ANALYSTS THINK GOLD WILL TOP THE 400ANOUNCE LEVEL WITHIN THE NEXT FEW WEEKS AS THE US ECONOMY CONTINUES TO STRENGTHEN IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDEOIL FUTURES PRICES FINISHED SLIGHTLY HIGHER AFTER TRADING IN A WIDE RANGE DESCRIBED BY TRADERS AS A REAL ROLLERCOASTER RIDE SOME MARKET PARTICIPANTS HAVE BEGUN TO QUESTION WHETHER THE MARKET BEARISH FOR WEEKS MAY BE POISED FOR A TURNAROUND DATA ON INVENTORY LEVELS RELEASED BY THE AMERICAN PETROLEUM INSTITUTE AND THE ENERGY DEPARTMENT DURING THE MIDDLE OF THE WEEK PROVIDED SUPPORT FOR THE PRICE RISE THEIR NUMBERS SHOWED CRUDE STOCKS DROPPED BY 63 MILLION TO 66 MILLION BARRELS LAST WEEK IN REACTION TO A SUDDEN UNEXPECTED JUMP IN REFINERY OPERATIONS ANALYSTS AND TRADERS SAID THEY WERE MOST SURPRISED BY THE FACT THAT DATA SHOWED REFINERY OPERATIONS INCREASED TO AS MUCH AS 935 OF CAPACITY A GAIN OF 27 ON THE WEEK ANALYSTS HAD EXPECTED REFINERY OPERATIONS TO DECLINE SOME TRADERS SAID THEY BELIEVE THE JUMP IN REFINERY UTILIZATION COULD REPRESENT A LASTMINUTE EFFORT TO BUILD PRODUCT INVENTORIES BEFORE REFINERIES ARE SHUT DOWN FOR SCHEDULED MAINTENANCE BRITISH PETROLEUM CO'S HUGE LOUISIANA REFINERY IS SCHEDULED FOR A 42DAY SHUTDOWN BEGINNING FEB 17 AND PHILLIPS PETROLEUM CO PLANS A 22DAY CLOSURE AT ITS PLANT IN BORGER TEXAS GRAINS PRICES OF CORN FUTURES CONTRACTS ROSE AMID SPECULATION THAT THE AGRICULTURE DEPARTMENT ON WEDNESDAY WILL REVISE ITS TWOMONTHOLD HARVEST ESTIMATE TO REFLECT MORE DAMAGE FROM EXCESSIVE RAIN AND FLOODING TRADERS EXPECT THE GOVERNMENT TO PUT THE SIZE OF THE RECENTLY HARVESTED CROP BETWEEN 63 BILLION BUSHELS AND 65 BILLION BUSHELS THE AGRICULTURE DEPARTMENT IN NOVEMBER ESTIMATED THAT THE US CORN HARVEST DECLINED 31 TO 65 BILLION BUSHELS FROM THE 1992 CROP US CORN PRICES HAVE SOARED SINCE THE POOR FALL HARVEST AND PRICES WOULD CLIMB EVEN HIGHER THIS WINTER IF THE GOVERNMENT'S FINAL HARVEST ESTIMATE IS REVISED LOWER CORN STOCKPILES THIS YEAR ARE ALREADY EXPECTED TO BE THE TIGHTEST SINCE THE MID1970S MUCH OF THE CORN CROP IS USED TO FEED LIVESTOCK AND TO MAKE FRUCTOSE SWEETENER AND ETHANOL FUEL AMONG OTHER THINGS REVISING THE CORN HARVEST COULD SIGNAL THAT THE US WILL HAVE PROBLEMS SUPPLYING FOREIGN CUSTOMERS IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY ROSE THREE CENTS A BUSHEL TO SETTLE AT 30850 A BUSHEL WHEAT PRICES ROSE AMID FORECASTS THAT COLD TEMPERATURES ACROSS THE SOUTHERN PLAINS OVER THE WEEKEND MIGHT DAMAGE THE DORMANT WHEAT CROP THERE 9401070053 940107 BUSINESS BRIEF AZTEC ENERGY CORP COMPANY FORESEES NET LOSS OF 12 MILLION FOR FISCAL '93 AZTEC ENERGY CORP SAID IT EXPECTS TO REPORT A NET LOSS OF MORE THAN 12 MILLION FOR THE FISCAL YEAR ENDED SEPT 30 THE DALLAS COMPANY ALSO SAID IT EXPECTS TO RESTATE EARNINGS FOR THE FIRST NINE MONTHS OF FISCAL 1993 WHICH HAD BEEN REPORTED AS PROFITABLE AS A LOSS FOR THE FIRST NINE MONTHS AZTEC HAD REPORTED NET INCOME OF 152637 OR FOUR CENTS A SHARE ON REVENUE OF 695719 FOR FISCAL 1992 AZTEC HAD A NET LOSS OF 47000 OR SEVEN CENTS A SHARE ON REVENUE OF 105000 THE TOTAL SHARES OUTSTANDING ROSE TO 43 MILLION CURRENTLY FROM 15 MILLION IN SEPTEMBER 1992 THE OIL AND NATURALGAS COMPANY BLAMED ITS EXPECTED LOSS FOR THE YEAR ON OPERATING COSTS DELAYS IN GAS PRODUCTION AND RECLASSIFYING CERTAIN ITEMS ON ITS BALANCE SHEET AND INCOME STATEMENT AZTEC WHOSE OVERTHECOUNTER TRADING WAS HALTED TEMPORARILY YESTERDAY CLOSED AT 184375 DOWN 59375 CENTS OR 24 9401070052 940107 US TO CUT CHINA'S QUOTAS FOR TEXTILES AND APPAREL WASHINGTON THE CLINTON ADMINISTRATION SAID IT PLANS TO SLASH CHINA'S TEXTILE AND APPAREL QUOTAS 25 TO 35 IN A MOVE CERTAIN TO PUT FURTHER STRAIN ON THE US RELATIONSHIP WITH CHINA US TRADE REPRESENTATIVE MICKEY KANTOR SAID WASHINGTON TOOK ACTION BECAUSE HE CLAIMED CHINESE COMPANIES SHIP GOODS THROUGH OTHER COUNTRIES TO AVOID US QUOTA LIMITS FOR GOODS MADE IN CHINA HE SAID THE CHINESE GOVERNMENT IS INVOLVED TO SOME DEGREE IN THE ILLEGAL SHIPMENTS BECAUSE MANY OF THOSE COMPANIES ARE GOVERNMENTRUN YESTERDAY'S ACTION WAS EXPECTED TALKS OVER CREATING A NEW QUOTA SYSTEM FELL APART LAST MONTH AND US OFFICIALS SAID CHINA DIDN'T RESPOND TO AN INVITATION TO MEET AGAIN OVER THE DISPUTE THE REDUCED QUOTAS TAKE EFFECT JAN 17 RETROACTIVE TO THE BEGINNING OF THE MONTH MR KANTOR SAID THE US CUSTOMS SERVICE CLAIMS AN ESTIMATED 2 BILLION IN CHINESE TEXTILES ARE SHIPPED ILLEGALLY THROUGH OTHER COUNTRIES EACH YEAR LEGAL IMPORTS OF CHINESE TEXTILES AND APPAREL TOTALED ABOUT 45 BILLION IN 1992 MR KANTOR ESTIMATED THE CUTS WOULD COST CHINA BETWEEN 11 BILLION AND 12 BILLION IN EXPORT RECEIPTS ANNUALLY US OFFICIALS SAID THE 35 CUT WOULD APPLY TO EIGHT CATEGORIES OF TEXTILES AND APPAREL IDENTIFIED BY THE CUSTOMS SERVICE AS ITEMS WHERE ALLEGED SHIPMENT VIOLATIONS ARE MOST PREVALENT BY CHINA THE 25 REDUCTION IS EXPECTED TO APPLY TO THE OTHER CATEGORIES OF CHINESE GOODS 9401070051 940107 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON DEFENDERS COME OUT SWINGING ON WHITEWATER ADVISER BEGALA FINALLY OFFERS AN EXPLANATION WHY THE CLINTONS NEVER CLAIMED THEIR REALESTATE LOSSES ON THEIR TAX RETURNS HE SAYS THEY COULD ONLY HAVE DONE SO WHEN THEY LIQUIDATED THEIR INVESTMENT IN 1992 THEY COULD HAVE SAVED 280 IF THEY CLAIMED THE LOSSES AGAINST A 1000 CAPITAL GAIN THEY REPORTED HE SAYS BUT IT WASN'T WORTH IT BECAUSE OF THE HASSLE FACTOR WE WANT TO FIGHT BACK HE SAYS OF THE CHARGES AGAINST THE FIRST COUPLE WE ARE TIRED OF PEOPLE USING BILL AND HILLARY CLINTON AS PUNCHING BAGS CLINTON AIDES SOUGHT UNSUCCESSFULLY TO PLACE A DEFENDER ON CBS'S MORNINGNEWS SHOW YESTERDAY TO CONFRONT SENATE GOP LEADER DOLE GORE IS ITCHING TO BE ASKED ABOUT WHITEWATER SO HE CAN UNLEASH AN ATTACK ON THE CLINTONS' TORMENTORS THE FED WILL WAIT BEFORE RAISING INTEREST RATES UNLESS INFLATION HEATS UP DESPITE WALL STREET SPECULATION TO THE CONTRARY OFFICIALS APPEAR TO HAVE VOTED TO LEAN TOWARD NEITHER HIGHER NOR LOWER RATES AT THEIR CLOSEDDOOR DECEMBER MEETING SOME REGIONAL FED PRESIDENTS ARE RELUCTANT TO GIVE GREENSPAN THE LEEWAY TO MOVE RATES BECAUSE THEY WANT THE PIVOTAL CALL TO BE MADE AT A FORMAL POLICYCOMMITTEE MEETING OTHERS UNSURE HOW STRONG THE FIRST QUARTER WILL BE WANT TO AVOID LAST YEAR'S FLIPFLOP WHEN THE FED LEANED TOWARD HIGHER RATES IN MAY AND REVERSED ITSELF IN AUGUST STILL THE FED PROBABLY WILL PUSH UP RATES BEFORE MIDYEAR THE NEW WHITE HOUSE ECONOMIC FORECAST ANTICIPATES AN INCREASE OF ABOUT A HALF PERCENTAGE POINT THIS YEAR INMAN'S INTERESTS MAY RANGE WELL BEYOND TRADITIONAL PENTAGON CONCERNS THE DEFENSE CHIEFDESIGNATE IS LIKELY TO WEIGH IN ON TRADE MATTERS THOUGH A FREETRADER HE BELIEVES THE GOVERNMENT SHOULD HELP INDUSTRY COMPETE VIGOROUSLY WITH FOREIGN FIRMS HE ALSO FAVORS LOOSENING ANTITRUST REGULATIONS PENTAGON OFFICIALS HAVE BEEN TANGLING OVER THE ISSUE WITH JUSTICE BUT ASPIN NEVER SPOKE OUT ON THEIR BEHALF INMAN IS LIKELY TO ARGUE FOR RELATIVELY ROBUST DEFENSE BUDGETS BUT ALSO FOR SKEWING SPENDING AWAY FROM BIGTICKET WEAPONS PROCUREMENT AND TOWARD RESEARCH AND DEVELOPMENT TO MAINTAIN THE US TECHNOLOGICAL EDGE TO FIND R&D FUNDS HE ALMOST CERTAINLY WILL ORDER MORE PERSONNEL CUTS WHICH COULD BRING HIM INTO CONFLICT WITH THE SERVICES ESPECIALLY THE ARMY HOUSE INTELLIGENCE CHAIRMAN GLICKMAN SAYS INMAN AN INTELLIGENCE SPECIALIST COULD CHALLENGE THE AUTHORITY A LITTLE BIT OF CIA CHIEF WOOLSEY ALARMED BY THE PUBLIC SQUABBLE BETWEEN THE TREASURY AND FED OVER BANKREGULATORY CONSOLIDATION WHITE HOUSE ECONOMIC AIDES TRY TO BROKER A COMPROMISE SOME ADMINISTRATION AND FED OFFICIALS ASK PRIVATELY WHY GREENSPAN DIDN'T PERSONALLY ALERT THE WHITE HOUSE TO HIS CONCERNS WHEN EARLIER TALKS WITH TREASURY BROKE DOWN WILLIAM KRISTOL THE GOP STRATEGIST WHO SHOOK UP REPUBLICANS' HEALTHREFORM THINKING LAST MONTH BY ARGUING THERE IS NO HEALTHCARE CRISIS READIES A FOLLOWUP STRATEGY HE ARGUES THAT RATHER THAN PUSH BIG PLANS TO COUNTER CLINTON'S THE GOP SHOULD PRODUCE A LIMITED SET OF INSURANCE AND MALPRACTICE REFORMS AND TAX INCENTIVES GEORGIA SEN COVERDELL SEEMS ATTRACTED TO THE APPROACH KRISTOL HOPES ABOVE ALL TO CONVERT GINGRICH AND DOLE GLASNOST THE CIA ISSUES ITS FIRST NEWSLETTER TO JOURNALISTS SCHOLARS AND PUBLICINTEREST GROUPS SENT IN AN ENVELOPE BEARING A HOLOGRAM OF A SPY SATELLITE INSTEAD OF A STAMP THE NEWSLETTER PROMISES THAT THE AGENCY WILL RELEASE LARGE QUANTITIES OF ITS SECRET COLD WAR FILES LATER THIS YEAR SOME DEALING WITH THE 1961 BAY OF PIGS INVASION CLINTON'S EMERGING PLAN TO OVERHAUL THE SUPERFUND TOXICCLEANUP PROGRAM MAY PROVE AN EASIER SELL TO REPUBLICANS THAN TO MEMBERS OF HIS OWN PARTY KEY LEGISLATIVE DEMOCRATS WHO HAVE BEEN BRIEFED ON THE PLAN ARE WARY THEY PREFER A GREENER PROPOSAL PUT FORWARD BY A PANEL OF ENVIRONMENTALISTS AND INDUSTRY REPRESENTATIVES JUSTICES RETURN TO FACE CASES ON THE ENVIRONMENT CRIME AND MILITARY BASES THE HIGH COURT RECONVENES MONDAY AMID GROWING BLACKMUN RETIREMENT RUMORS THE JUSTICES WILL USE THE FIGHT OVER THE PROPOSED CLOSING OF THE HUGE PHILADELPHIA NAVY YARD TO DECIDE WHETHER POLITICIANS MAY ASK THE JUDICIARY TO SECONDGUESS THE DECISIONS OF THE BASECLOSING COMMISSION CREATED BY CONGRESS BIG MONEY RIDES ON A CASE FROM CHICAGO INVOLVING WHETHER ASH LEFT AFTER INCINERATION OF CITY TRASH MUST BE TREATED AS HAZARDOUS WASTE IF SO INCINERATORS IN MANY CITIES COULD FAIL PROMPTING DEFAULT ON BILLIONS OF DOLLARS IN MUNICIPAL BONDS THE COURT ALSO WILL CONSIDER WHETHER STATE TAXATION OF ILLEGAL NARCOTICS POSSESSED BY A DEFENDANT SHOULD BE BARRED UNDER THE DOUBLE JEOPARDY CLAUSE MINOR MEMOS CLINTON MOMENTARILY NONPLUSED WHEN A SUPPORTER ASKS HIM AT A WHITE HOUSE RECEPTION WHETHER HE FAVORS ARKANSAS OR GEORGETOWN IN COLLEGE BASKETBALL FINALLY RESPONDS ARKANSAS BUT DON'T TELL JOHN THOMPSON EPA ADMINISTRATOR CAROL BROWNER TAKES FEARSOME CAPITOL HILL BARON JOHN DINGELL TO THE MOVIES TO SEE GRUMPY OLD MEN CLINTON'S BUDGET OFFICE DECIDES TO ISSUE THE BUDGET IN FOUR SEPARATE VOLUMES AS WAS DONE IN THE PRERICHARD DARMAN ERA GONE IS THE SINGLE VOLUME THE SIZE OF THE MANHATTAN PHONE BOOK 9401070050 940107 BUSINESS BRIEF S&K FAMOUS BRANDS INC SHARES DROP MORE THAN 13 AFTER STATEMENT ON SALES SHARES OF S&K FAMOUS BRANDS INC TUMBLED MORE THAN 13 AFTER THE COMPANY ACKNOWLEDGED THAT ITS SALES LEVELS FOR THE FOURTH QUARTER WON'T MEET ANALYSTS' EXPECTATIONS THE RICHMOND VA MENSWEAR RETAILER SAID IT EXPECTS FOURTHQUARTER GROSS SALES TO BE BETWEEN 33 MILLION AND 35 MILLION ABOUT AN 8 TO 15 GAIN OVER THE YEARAGO PERIOD ANALYSTS HAD ESTIMATED FOURTHQUARTER SALES WOULD BE ABOUT 39 MILLION S&K SAID IT BELIEVES LOWERTHANEXPECTED SALES STEMMED FROM SOFT DEMAND FOR MEN'S APPAREL IN SOME LOCATIONS DURING THE HOLIDAY SEASON S&K HAS 154 STORES IN 26 STATES IN NASDAQ MARKET TRADING S&K SHARES FELL 250 TO 16 IN HEAVY TRADING 9401070049 940107 TECHNOLOGY & MEDICINE AT&T EXECUTIVE ATTACKS CABLE INDUSTRY AS WAR OVER INTERACTIVE TV HEATS UP BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS AMERICAN TELEPHONE & TELEGRAPH CO LAUNCHED A BROADSIDE AGAINST THE CABLE TELEVISION INDUSTRY WARNING THAT CABLE PURVEYORS COULD ACT AS GATEKEEPERS RESTRICTING WHAT GOES INTO HOMES OVER THE EMERGING INFORMATION HIGHWAY IN HIS KEYNOTE ADDRESS TO THE CONSUMER ELECTRONICS SHOW HERE YESTERDAY ROBERT KAVNER AT&T EXECUTIVE VICE PRESIDENT AND CHIEF STRATEGIST FOR THE COMPANY'S WIDENING FORAY INTO INTERACTIVE COMMUNICATIONS SAID CABLE AND LOCAL TELEPHONE DISTRIBUTION FIRMS WOULD IMPEDE THE FLOW OF INFORMATION IF THEY FOLLOW CABLE'S CURRENT PRACTICES MR KAVNER SAID TV PRODUCERS HAVE GREAT DIFFICULTY GETTING THEIR IDEAS AND PROGRAMS THROUGH THE CABLE INDUSTRY'S GATE AND HE PREDICTED PROVIDERS OF NEW INTERACTIVE PROGRAMS WOULD FACE THE SAME OBSTACLE IF THE GATE IS NOT OPENED GETTING A PROGRAM ON CABLE WHICH PROVIDES PROGRAMMING TO 624 OR 58 MILLION OF ALL AMERICAN HOMES IS ROUGHLY AKIN TO PICNICKING WITH A TIGER MR KAVNER SAID YOU MIGHT ENJOY THE MEAL BUT THE TIGER ALWAYS EATS LAST MR KAVNER'S SPEECH IS A PRIME EXAMPLE OF HOW PITCHED AND HYPED THE RACE TO OFFER INTERACTIVE SERVICES HAS BECOME AMONG THE RUNNERS IN ADDITION THE AT&T ATTACK COULD BE DISMISSED BY SOME AS SELFSERVING THE COMPANY AND GENERAL MAGIC INC A SILICON VALLEY STARTUP BACKED BY AT&T AND OTHER MAJOR COMPANIES INTRODUCED AT THE SHOW A NEW TECHNOLOGY THAT WILL USE ELECTRONIC AGENTS TO SIFT THROUGH THOUSANDS OF PROGRAMMING CHOICES AND THAT WILL NEED ACCESS TO THE CABLE BOXES THAT OPERATORS CONTROL MR KAVNER'S WORDS BROUGHT A STRONG REBUTTAL FROM THE CABLE INDUSTRY WE WOULD DISAGREE WITH THE GATEKEEPER MODEL AS EVIDENCED BY THE VAST ARRAY OF CREATIVE AND INNOVATIVE PROGRAMS SEEN DAILY ON CABLE TV SAID PEGGY LARAMIE A NATIONAL CABLE TELEVISION ASSOCIATION SPOKESWOMAN WHO ADDED THAT SHE HAD NOT YET SEEN THE FULL TEXT OF THE SPEECH SHE POINTED OUT THAT THERE ARE DOZENS OF NEW NETWORKS BEING LAUNCHED THIS YEAR SHE ADDED WE'RE IN A NEW ERA OF COMPETITION WHICH WILL BE MARKED BY INTEROPERABILITY AND MANY PROVIDERS CABLE EXECUTIVES HAVEN'T INDICATED WHETHER THEY PLAN TO RENT NEW SETTOP BOXES THAT WILL BE NEEDED TO ALLOW TELEVISION VIEWERS AT HOME TO INTERACT WITH VARIOUS SERVICES SUCH AS ELECTRONIC SHOPPING AND VIDEO GAMES THAT CAN BE PLAYED TOGETHER BY PEOPLE IN DIFFERENT CITIES IF THOSE BOXES ARE RENTED MR KAVNER SAID THAT WOULD SEVERELY CRIMP THE ABILITY OF CONSUMER ELECTRONICS COMPANIES TO MAKE COMPETITIVE AND PROFITABLE PRODUCTS WE BELIEVE IT'S A THREAT TO THE VERY SURVIVAL OF THE CONSUMER ELECTRONICS INDUSTRY HE SAID AT&T'S ASSAULT ON CABLE COMES AT A TIME WHEN THE CLINTON ADMINISTRATION IS CONTEMPLATING HOW TO ENSURE THAT BOTH USERS AND PROVIDERS OF THE INFORMATION HIGHWAY GAIN OPEN ACCESS VICE PRESIDENT AL GORE IS TO DISCUSS THE ISSUE NEXT TUESDAY AT A GATHERING IN LOS ANGELES WITH INDUSTRY OFFICIALS MARK ROBICHAUX IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9401070048 940107 BUSINESS BRIEF RAYTHEON CO BEECH AIRCRAFT UNIT WINS PACT VALUED AT 133 MILLION RAYTHEON CO'S BEECH AIRCRAFT UNIT SAID IT RECEIVED A 133 MILLION CONTRACT FROM THE AIR FORCE FOR PILOT TRAINING AIRCRAFT THE CONTRACT CALLS FOR 35 T1A JAYHAWK AIRCRAFT TO BE DELIVERED FROM JULY 1995 TO JUNE 1996 THE PLANE IS A MILITARY VERSION OF THE BEECHJET 400A BUSINESS JET BEECH AIRCRAFT LOCATED IN WICHITA KAN SAID IT HAS RECEIVED OVERALL AIR FORCE CONTRACTS TOTALING 628 MILLION FOR 148 JAYHAWKS THE TOTAL ORDER IS EXPECTED TO BE FOR 180 JAYHAWKS RAYTHEON WHICH IS BASED IN LEXINGTON MASS IS AN ELECTRONICS AND AEROSPACE CONCERN 9401070047 940107 US CANADA MEXICO SEEK TO SPUR NAFTA TARIFF CUTS OTTAWA THE US CANADA AND MEXICO ARE CONSIDERING INDUSTRY PROPOSALS TO SPEED UP TARIFF CUTS UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT THE NAFTA ACCORD WHICH TOOK EFFECT JAN 1 REQUIRES THE THREE COUNTRIES TO REMOVE MOST TARIFFS ON EACH OTHER'S GOODS WITHIN THE NEXT 10 YEARS A CANADIAN OFFICIAL SAID PRODUCTS THAT MAY BE ALLOWED TO TRADE FREE OF TARIFF SOONER THAN PLANNED INCLUDE DRY BEANS FLAT GLASS MAJOR HOUSEHOLD APPLIANCES POTATOES WINE APPLIANCE TIMERS PADLOCKS AND VARIOUS RAILCAR COMPONENTS THE OFFICIAL SAID THE THREE COUNTRIES EXPECT TO RECEIVE INDUSTRY PROPOSALS WITHIN THE NEXT FEW WEEKS TO ACCELERATE TARIFF CUTS ON OTHER GOODS THE NAFTA ACCORD BROADENS THE FIVEYEAROLD USCANADA FREE TRADE AGREEMENT TO INCLUDE MEXICO THE US AND CANADA IN RESPONSE TO INDUSTRY REQUESTS MADE ACCELERATED TARIFF CUTS ON THREE OCCASIONS IN 1990 1991 AND 1993 UNDER THE ORIGINAL USCANADA PACT 9401070046 940107 BUSINESS BRIEF CITY HOLDING CO STOCK SWAP TO BUY THRIFT IS VALUED AT 68 MILLION CITY HOLDING CO IN CHARLESTON WVA SAID IT AGREED TO ACQUIRE LINCOLN SAVINGS BANK IN A STOCK SWAP WITH AN INDICATED VALUE OF ABOUT 68 MILLION THE MOVE MARKS CITY HOLDING'S FIRST FORAY OUTSIDE WEST VIRGINIA AND IS ITS FIFTH ACQUISITION IN THE PAST TWO YEARS THE AGREEMENT WHICH IS STILL SUBJECT TO APPROVAL OF REGULATORY AUTHORITIES AND THE SHAREHOLDERS OF BOTH COMPANIES CALLS FOR A TAXFREE EXCHANGE OF 225 SHARES OF CITY HOLDING COMMON STOCK FOR EACH SHARE OF LINCOLN SAVINGS COMMON SHARES BASED ON THE JAN 5 CLOSING PRICE OF CITY HOLDING SHARES SHAREHOLDERS OF LINCOLN SAVINGS IN CARNEGIE PA WILL RECEIVE CITY HOLDING STOCK WORTH 7594 A SHARE THE TRANSACTION EXPECTED TO BE COMPLETED IN MID1994 WILL BE ACCOUNTED FOR AS A POOLINGOFINTERESTS AND RESULT IN A MARKET CAPITALIZATION OF ABOUT 169 MILLION LINCOLN SAVINGS WHICH OPERATES SEVEN BRANCHES IN THE PITTSBURGH REGION WILL BE A WHOLLYOWNED SUBSIDIARY OF CITY HOLDING RETAINING ITS NAME AND MANAGEMENT 9401070045 940107 BUSINESS BRIEF INTERNATIONAL PAPER CO FOURTHPERIOD EARNINGS ARE LIKELY TO EXCEED ESTIMATES INTERNATIONAL PAPER CO PURCHASE NY SAID IMPROVING RESULTS AT ITS US BUSINESSES ESPECIALLY IN ITS FORESTPRODUCTS OPERATION WILL LEAD TO BETTERTHANEXPECTED FOURTHQUARTER EARNINGS THE PAPER AND FORESTPRODUCTS COMPANY SAID NET INCOME WILL BE BETWEEN 75 CENTS AND 80 CENTS A SHARE IN THE FOURTH QUARTER ENDED DEC 31 1992 NET INCOME EXCLUDING A CHARGE WAS 87 MILLION OR 71 CENTS A SHARE ON SALES OF 34 BILLION INTERNATIONAL PAPER ADDED THAT FAVORABLE PERFORMANCE AT ITS MILLING OPERATIONS ALSO WILL CONTRIBUTE TO THE STRONGERTHANEXPECTED FOURTHQUARTER PERFORMANCE THE COMPANY SAID IT EXPECTS TO RELEASE FOURTHQUARTER AND FULLYEAR EARNINGS TUESDAY IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY INTERNATIONAL PAPER FELL 875 CENTS TO 7150 THE COMPANY ANNOUNCEMENT CAME AFTER THE MARKET CLOSED 9401070044 940107 BUSINESS BRIEF SOUTHWESTERN BELL CORP COMPANY CLOSES PURCHASE OF TWO CABLETV SYSTEMS SOUTHWESTERN BELL CORP SAN ANTONIO SAID IT COMPLETED ITS 650 MILLION ACQUISITION OF TWO WASHINGTON AREA CABLETELEVISION SYSTEMS FROM CLOSELY HELD HAUSER COMMUNICATIONS INC THE REGIONAL TELEPHONE COMPANY TOOK OVER CABLE TV MONTGOMERY SERVING MONTGOMERY COUNTY MD AND CABLE TV ARLINGTON SERVING ARLINGTON COUNTY VA AFTER RECEIVING THE NECESSARY REGULATORY AND LICENSING APPROVALS THE TRANSACTION WAS FIRST ANNOUNCED IN FEBRUARY 1993 9401070042 940107 WHAT'S NEWS WORLDWIDE SARAJEVO SUFFERED INTENSE SERB SHELLING AND FIGHTING FLARED ACROSS BOSNIA BOSNIA'S CAPITAL WAS HIT BY 732 SHELLS BEFORE NOON UN MONITORS SAID LOCAL AUTHORITIES REPORTED EIGHT PEOPLE KILLED INCLUDING A TWOMONTHOLD BABY AND 61 WOUNDED INCLUDING SEVERAL FRENCH PEACEKEEPERS FOR SARAJEVO THIS IS ONE OF THE WORST DAYS SINCE THE BEGINNING OF THE AGGRESSION STATERUN BOSNIAN RADIO SAID CLASHES ACROSS THE FORMER YUGOSLAV REPUBLIC DIMMED PROPECTS FOR JAN 18 GENEVA PEACE TALKS SEPARATELY A FORMER AMERICAN AMBASSADOR TO YUGOSLAVIA BECAME THE FIFTH US CAREER DIPLOMAT IN 17 MONTHS TO RESIGN FROM THE FOREIGN SERVICE BECAUSE OF DISAGREEMENT WITH US POLICY TOWARD BOSNIA THE US AMBASSADOR TO THE UN SHAKEN BY A VISIT TO A MASS GRAVE IN CROATIA FOR AS MANY AS 300 PEOPLE BELIEVED EXECUTED BY SERBS SAID THAT THE WORLD MUST KNOW THE DREADFUL STORY ATTORNEY GENERAL RENO IS LIKELY TO SEEK APPOINTMENT OF AN INDEPENDENT COUNSEL TO PROBE CLINTON'S ROLE IN AN ARKANSAS VENTURE IF CONGRESS PASSES A NEW ETHICS LAW ENABLING SUCH AN APPOINTMENT AND IF THE REENACTED LAW IS APPROPRIATE FOR THIS CASE THE OLD LAW PROVIDING FOR COURTNAMED INDEPENDENT COUNSELS TO INVESTIGATE HIGHLEVEL ADMINISTRATION OFFICIALS EXPIRED A YEAR AGO MEXICO'S PRESIDENT DECLARED THAT A SIXDAY UPRISING IN THE SOUTHERN STATE OF CHIAPAS WASN'T AN INDIAN REBELLION AND THAT THE INDIGENOUS POPULATION HAD REJECTED THE VIOLENCE SALINAS SPOKE AS THOUSANDS OF TROOPS PUSHED THROUGH THE EMBATTLED REGION DRIVING THE REBELS INTO THE HILLS PRESIDENT CLINTON FLEW FROM WASHINGTON TO HOT SPRINGS ARK TO BEGIN MAKING FUNERAL ARRANGEMENTS FOR HIS MOTHER VIRGINIA KELLEY 70 WHO DIED EARLY YESTERDAY FROM COMPLICATIONS RELATED TO BREAST CANCER THE FUNERAL WILL BE TOMORROW MORNING THE US WOULD BE FOOLISH TO IGNORE THE STRONG SHOWING OF EXTREME NATIONALISTS IN RUSSIAN ELECTIONS GORE SAID BUT SUCH CONCERNS ARE NO REASON TO STEER CLEAR HE SAID SUBBING FOR CLINTON THE VICE PRESIDENT OUTLINED THE ADMINISTRATION'S VIEW OF THE IMPORTANCE OF US INVOLVEMENT IN EUROPE AND RUSSIA ISRAEL ANNOUNCED THAT IT WOULD RELEASE 101 PALESTINIAN PRISONERS FROM THE GAZA STRIP AND WEST BANK TODAY AS A GOODWILL GESTURE ISRAEL AND THE PLO REPORTEDLY ARE PLANNING TO RESUME TALKS IN EGYPT ON MONDAY CONCERNING AN ISRAELI TROOP WITHDRAWAL FROM GAZA AND JERICHO THE EPA PROPOSED DOUBLING THE NUMBER OF CHEMICALS WHOSE RELEASE INTO WATER OR AIR MUST BE REPORTED TO THE AGENCY BY MANUFACTURERS THE AGENCY SAID 313 CHEMICALS SHOULD BE ADDED TO THE LIST OF 320 CHEMICALS WHOSE EMISSIONS MANUFACTURERS ARE REQUIRED TO REPORT FOR AN ANNUAL EPA TOXIC RELEASE INVENTORY DEFENSE SECRETARY ASPIN SENT BACK FOR FURTHER REVIEW A DOCUMENT DEFINING RULES FOR WOMEN IN COMBAT A DEFENSE OFFICIAL SAID ASPIN WASN'T SATISFIED THAT THE DRAFT RULES DRAWN UP BY THE PENTAGON WITH ARMY AND MARINE CORPS INPUT SUFFICIENTLY OPENED COMBAT JOBS TO WOMEN THE RULES WERE TO HAVE BEEN MADE PUBLIC THIS WEEK THE WHITE HOUSE TOLD STATES THEY MUST COMPLY WITH A RULE REQUIRING THEM TO PAY FOR ABORTIONS FOR POOR WOMEN WHO ARE VICTIMS OF RAPE OR INCEST OBJECTIONS TO THE NEW ADMINISTRATION POLICY HAVE COME FROM SOME STATES THAT HAVE LAWS PERMITTING MEDICAIDFUNDED ABORTION ONLY IN CASES WHERE A MOTHER'S LIFE IS IN DANGER OHIO'S SEN GLENN URGED EXPANSION OF A FEDERAL INVESTIGATION ON RADIATION TESTING TO INCLUDE EXPERIMENTS WITH DRUGS CHEMICALS AND PESTICIDES THE DEMOCRATIC LAWMAKER SAID IT COULDN'T BE STATED WITH CERTAINTY THAT SUCH EXPERIMENTS CONDUCTED ON US CITIZENS WITHOUT THEIR INFORMED CONSENT WERE NO LONGER TAKING PLACE UN CHIEF BOUTROSGHALI PLANS TO RECOMMEND SHORTLY THAT A REDUCED FORCE OF AT LEAST 15000 TROOPS STAY IN SOMALIA AFTER THE US WITHDRAWS ITS SOLDIERS IN MARCH A SENIOR UN OFFICIAL SAID THE CURRENT UN TROOP LEVEL THERE IS 28000 THE UN IS PUSHING THE BAGHDAD GOVERNMENT TO SELL A ONETIME LIMITED QUANTITY OF OIL ARGUING THAT SUCH A MOVE WOULD HELP LEAD TO RATHER THAN DETRACT FROM A FULL LIFTING OF AN INTERNATIONAL OIL EMBARGO IN THE FUTURE THE IRAQIS ARE BEING URGED BY UN AUTHORITIES TO SELL 16 BILLION IN OIL FOR HUMANITARIAN AID AND TO DEFRAY OTHER UN COSTS 9401070041 940107 PIER 1 IMPORT SALES CLIMB 118 FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SALES FOR THE FIVE WEEKS ENDED JAN 1 ROSE 118 TO 972 MILLION FROM 869 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR INCREASED 68 YEARTODATE SALES JUMPED 92 TO 6006 MILLION FROM 5503 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR WERE UP 54 IN THE YEARTODATE PERIOD 9401070040 940107 BUSINESS BRIEF MORNINGSTAR GROUP INC DAIRY BUSINESS TO BE SOLD PAYOUT WILL BE SUSPENDED MORNINGSTAR GROUP INC DALLAS SAID IT IS SELLING ITS FLORIDA DAIRY BUSINESS FOR 48 MILLION REORGANIZING THE REST OF THE COMPANY'S OPERATIONS AND SUSPENDING ITS DIVIDEND THE DAIRY BUSINESS MIAMIBASED VELDA FARMS ACCOUNTS FOR 130 MILLION OF MORNINGSTAR'S ROUGHLY 400 MILLION IN ANNUAL SALES THE SPECIALTYFOODPRODUCTS COMPANY SAID IT SIGNED A LETTER OF INTENT TO SELL VELDA BUT WOULDN'T IDENTIFY THE BUYER THE REORGANIZATION WHICH WILL INVOLVE AN UNSPECIFIED NUMBER OF JOB CUTS IS EXPECTED TO SAVE AT LEAST 5 MILLION A YEAR IT IS RESULTING IN A 9 MILLION CHARGE AGAINST FOURTHQUARTER EARNINGS MORNINGSTAR SAID IT WILL SUSPEND ITS DIVIDEND AFTER PAYMENT ON JAN 20 OF AN ALREADY DECLARED 375CENT DIVIDEND TO STOCK OF RECORD DEC 31 THE MOVES ARE THE COMPANY'S FIRST MAJOR STEPS SINCE C DEAN METROPOLOUS FORMER PRESIDENT AND CHIEF EXECUTIVE OF STELLA FOODS INC WAS NAMED CHAIRMAN 9401070039 940107 BUSINESS BRIEF ULTRALIFE BATTERIES INC PREPAYMENT OF KODAK NOTE COMPLETES ASSET PURCHASE ULTRALIFE BATTERIES INC SAID IT PAID ABOUT 2 MILLION TO EASTMAN KODAK CO IN FINAL SETTLEMENT OF A NOTE PAYABLE FUTURE ROYALTIES PAST INVENTORY PURCHASES AND ACCRUED INTEREST ON THE PROMISSORY NOTE ULTRALIFE BASED IN NEWARK NY WAS FORMED IN 1991 WHEN IT AGREED TO ACQUIRE LITHIUMBATTERY TECHNOLOGY AND THE ULTRALIFE BRAND NAME FROM KODAK ROCHESTER NY ULTRALIFE SAID THE PROMISSORY NOTE IN THE AMOUNT OF 18 MILLION AND ACCRUED INTEREST WAS DUE MARCH 12 1997 ULTRALIFE SAID PREPAYMENT COMPLETES ALL OBLIGATIONS UNDER THE ASSET PURCHASE AGREEMENT BETWEEN ULTRALIFE AND KODAK SEPARATELY ULTRALIFE SAID IT HAS BEEN NOTIFIED THAT IT WON A 750000 US ARMY CONTRACT FOR DEVELOPMENT OF HIGHENERGY LITHIUM BATTERIES UNDER THE CONTRACT WHICH THE COMPANY SAID IT PLANS TO FINALIZE SHORTLY IT WILL PROVIDE THE ARMY WITH A LITHIUM MANGANESE DIOXIDE BATTERY 9401070038 940107 INTERNATIONAL BRIEF DIXONS PLC LOSS TOTALED 2927 MILLION FOR 6 MONTHS ENDED NOV 13 DIXONS PLC A UK ELECTRONICS CONCERN SAID IT HAD A PRETAX LOSS OF 1967 MILLION 2927 MILLION IN THE SIX MONTHS ENDED NOV 13 AFTER AN EXCEPTIONAL LOSS OF 2105 MILLION THE LOSS COMPARED WITH PROFIT OF 14 MILLION A YEAR EARLIER SALES ROSE 25 TO 11 BILLION 164 BILLION FROM 8734 MILLION DIXONS SAID HOLIDAY SALES WERE CLOSE TO A YEAR EARLIER AND UK RETAIL OPERATING PROFIT FOR THE CURRENT FINANCIAL YEAR NOW APPEARS UNLIKELY TO EQUAL LAST YEAR'S LEVEL ON THE LONDON STOCK EXCHANGE STORES SHARES ENDED GENERALLY WEAKER AFTER DIXONS NOTED THE FLAT HOLIDAY SALES DIXON FELL 15 TO 240 PENCE 3571 FROM 283 PENCE THE EXCEPTIONAL LOSS OF 2105 MILLION WAS DUE TO THE DISPOSAL OF ITS SILO RETAILING UNIT IN THE US IN SEPTEMBER BEFORE EXCEPTIONALS DIXONS PRETAX PROFIT WAS 173 MILLION 9401070037 940107 CREDIT MARKETS BOND PRICES SURGE ON RISE IN JOBLESS CLAIMS REICH FORECAST FOR JOBS REPORT DUE OUT TODAY BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MOTION SICKNESS NOT EUPHORIA IS WHAT BOND MARKET PLAYERS ARE FEELING AFTER YESTERDAY'S RALLY THAT'S BECAUSE FOR THE FOURTH CONSECUTIVE SESSION BOND PRICES SHARPLY REVERSED THEMSELVES ON MONDAY THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED A POINT OR 10 FOR A BOND WITH 1000 FACE VALUE ON TUESDAY IT ROSE NEARLY A POINT ON WEDNESDAY IT DROPPED 3/4 POINT AND YESTERDAY IT ROSE 3/4 POINT TO 98 21/32 VERY CLOSE TO WHERE IT STARTED THE WEEK TO YIELD 634 PART OF THE REASON FOR THE ROCKY RIDE IS WORRY ABOUT THE STATE OF THE NATION'S ECONOMY AFTER ECONOMIC GROWTH PICKED UP IN THE FOURTH QUARTER OF LAST YEAR INVESTORS ARE BEGINNING TO BELIEVE THAT GROWTH COULD CONTINUE THIS QUARTER GREATER ECONOMIC GROWTH COULD MEAN HIGHER INFLATION WHICH HURTS BOND RETURNS THERE WERE TWO FACTORS RESPONSIBLE FOR YESTERDAY'S PRICE BOUNCE ONE WAS A REPORT ON INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE WHICH SHOWED A LARGER JUMP THAN EXPECTED FOR THE WEEK ENDED JAN 1 THE OTHER WAS LABOR SECRETARY ROBERT REICH WHO OFFERED HIS OWN PREDICTION FOR THE STATE OF THE COUNTRY'S JOB MARKET WITH THE OFFICIAL REPORT DUE TO BE RELEASED THIS MORNING AND MR REICH'S PRESUMED ACCESS TO ALL THE LATEST EMPLOYMENT DATA THE BOND MARKET TOOK MR REICH'S ESTIMATE AT FACE VALUE AND RALLIED THAT'S BECAUSE MR REICH'S PERSONAL ESTIMATE SHOWED FEWER JOBS BEING CREATED IN DECEMBER THAN MANY ON WALL STREET HAVE BEEN EXPECTING THIS WAS A RELIEF TO MANY BOND INVESTORS WHO HAD BEEN WORRYING THAT THE REPORT MIGHT SHOW A SURPRISING JUMP BUT MR REICH'S OFFICE DENIED THAT HE HAD ANY ADVANCE KNOWLEDGE OF THE DATA HE HAS NO IDEA ABOUT WHAT THE NUMBER WILL BE A SPOKESPERSON FOR MR REICH SAID HE WAS SIMPLY MAKING AN ESTIMATE BUT MANY BOND TRADERS SHRUGGED OFF THE COMMENTS FROM MR REICH'S OFFICE AND CONTINUED TO ASSUME THAT MR REICH'S ESTIMATE OF 160000 TO 200000 NEW NONFARM POSITIONS IN DECEMBER WOULD COME CLOSE TO THE FINAL REPORTED NUMBER OF THE LABOR DEPARTMENT'S ATTEMPTS TO PUT A DIFFERENT SPIN ON THE REMARKS ONE HEAD BOND TRADER REMARKED THAT'S LIKE SAYING HE'S ONLY MAKING A PERSONAL ESTIMATE OF HIS OWN SALARY GIVEN THE INFORMATION THAT ONE WOULD THINK HE HAS ACCESS TO SAID JOHN COSTAS HEAD OF GOVERNMENTBOND TRADING AT CS FIRST BOSTON INC IT'S A HIGHLY CREDIBLE ESTIMATE THE BOND MARKET HAD BEEN BRACING FOR A LARGER INCREASE OF AT LEAST 225000 IN NONFARM PAYROLL EMPLOYMENT AND THE COMMENTS PROVOKED A ROUND OF BUYING AS TRADERS ASSUMED THAT MR REICH KNEW FOR A FACT WHAT THE REPORT WOULD SHOW PRICES BEGAN TO MOVE HIGHER IN EARLY TRADING AFTER MR REICH MADE HIS COMMENTS DURING A TELECONFERENCE BROADCAST FROM WASHINGTON TO AN ECONOMIC CONFERENCE IN PARIS ACCORDING TO GEORGE WERKING CHIEF OF THE DIVISION OF MONTHLY INDUSTRY EMPLOYMENT AT THE BUREAU OF LABOR STATISTICS WHICH PRODUCES THE PAYROLL STATISTICS MR REICH COULDN'T YET HAVE KNOWN THE ACTUAL FIGURES THE DATA ARE UNDER LOCK AND KEY AT BLS HE SAID MR WERKING SAID MR REICH WOULD BE BRIEFED ON THE REPORT EARLY FRIDAY MORNING BEFORE THE CONFUSION OVER MR REICH'S COMMENTS COULD BE CLEARED UP INITIAL JOBLESS CLAIMS WERE REPORTED UP A GREATERTHANEXPECTED 70000 TO 363000 FOR THE WEEK ENDED JAN 1 ANALYSTS SAID THE CLAIMS DATA ARE TYPICALLY VERY VOLATILE DURING THE HOLIDAY SEASON AND THAT THE RISE WAS SIMPLY A REBOUND FROM THE PREVIOUS WEEK BUT COMING ON THE HEELS OF MR REICH'S REMARKS THE FIGURES MERELY ADDED FUEL TO THE FIRE AND BOND PRICES SURGED THE COMBINATION OF THE TWO WAS PRETTY DAMN POWERFUL SAID MR COSTAS OF FIRST BOSTON CONTRIBUTING TO THE RALLY WAS A NEGATIVE BIAS ON WALL STREET AGAINST THE BOND MARKET SAID MR COSTAS MANY WALL STREET FIRMS EITHER DIDN'T OWN ENOUGH BONDS TO MEET DEMAND YESTERDAY OR HAD ACTUALLY SOLD SHORT TO PROFIT FROM AN EXPECTED DROP IN BOND PRICES SAID MR COSTAS THE RESULT WAS THAT FIRMS WERE FORCED TO BUY BONDS IN THE OPEN MARKET WHICH ADDED TO THE RALLY A TRADER TAKES A SHORT POSITION BY SELLING A BORROWED SECURITY IN HOPES OF BUYING IT BACK LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE THE COMBINATION OF THE INITIAL CLAIMS DATA AND MR REICH'S STATEMENT CAUGHT THE MARKET SHORT SAID MARCELLO FRUSTACI A TRADER AT DAIWA SECURITIES AMERICA INC AND DESPITE THE CLARIFICATIONS OF MR REICH'S REMARK AND A BELIEF THAT THE CLAIMS RISE WAS FLUKE THE BOND PRICES SUSTAINED THEIR GAINS THE TIMING OF MR REICH'S COMMENTS PUZZLED MANY TRADERS AND ANALYSTS IN THE BOND MARKET GIVEN THE FACT THAT HE'S THE SECRETARY OF LABOR IT STANDS TO REASON THAT HE HAS A CONCEPT OF THE NUMBER SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC WHO ADDED THAT IT MAY NOT NECESSARILY BE THE FINAL NUMBER BUT MR FINE SAID IT'S FAIR TO SAY THAT IF HE'S FAR FROM THE MARK WHEN THE NUMBERS ARE ANNOUNCED THIS MORNING THERE WILL BE A CREDIBILITY PROBLEM AND IF MR REICH'S PREDICTION WAS ACCURATE POINTED OUT WILLIAM SULLIVAN A SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS INC IT RAISES THE QUESTION OF WHETHER AN OFFICIAL NEWS EMBARGO ON THE EMPLOYMENT REPORT IS BEING OBSERVED ACCORDING TO ANALYSTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT NONFARM PAYROLL EMPLOYMENT SHOULD POST AN INCREASE OF 239000 THAT WOULD FOLLOW A 208000 INCREASE REGISTERED IN NOVEMBER THE UNEMPLOYMENT RATE MEANWHILE IS EXPECTED TO RISE TO 65 FROM 64 MEANWHILE YESTERDAY THE TREASURY SOLD 1603 BILLION OF ONEYEAR BILLS AT AN AVERAGE DISCOUNT RATE OF 352 HERE ARE DETAILS FROM THE AUCTION 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 COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED JAN 13 AND MATURE JAN 12 1995 ISSUERS SOLD 141 BILLION OF CORPORATE DEBT PRIMARILY IN SHORTER MATURITIES FORD MOTOR CREDIT CO A UNIT OF FORD MOTOR CO WAS ABLE TO TAKE ADVANTAGE OF IMPROVING YIELD SPREADS AMONG AUTOMOBILECOMPANY BONDS TO SELL 500 MILLION OF DEBT A YIELD SPREAD IS THE DIFFERENCE BETWEEN TREASURY AND CORPORATE BOND YIELDS A NARROWER YIELD SPREAD CAN BE A SIGN OF INCREASING DEMAND FOR A COMPANY'S BONDS AS WELL AS IMPROVEMENT IN ITS BALANCE SHEETS FORD SOLD FIVEYEAR NOTES WITH 5625 COUPONS AT 99857 TO YIELD 5658 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 045 PERCENTAGE POINT ABOVE TREASURYS WITH COMPARABLE MATURITIES THE NOTES ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP AND WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC PRICES OF INVESTMENTGRADE BONDS FOLLOWED THE TREASURY MARKET HIGHER WHILE MANY PRICES IN THE JUNKBOND MARKET ALSO ROSE CANADIAN YANKEE BONDS OR DOLLARDENOMINATED DEBT SOLD BY CANADIAN ENTITIES IN THIS COUNTRY IMPROVED SLIGHTLY YESTERDAY THERE WAS ACTIVE BUYING BY DEALERS WHILE INVESTORS REACTED TO NEWS THAT UTILITY HYDROQUEBEC PLANS TO ISSUE 1 BILLION CANADIAN DOLLARS 7576 MILLION OF 10YEAR GLOBAL BONDS TRADERS SAID PRICES OF MOST MUNICIPAL BONDS ENDED HIGHER BUT BUYING WAS LIMITED BEFORE THE RELEASE OF THE DECEMBER EMPLOYMENT DATA IN SECONDARY TRADING CHICAGO'S 575 GASSUPPLY REVENUE BONDS OF 2023 CLOSED 1/8 POINT HIGHER AT 98 7/8 TO YIELD 580 IN THE PRIMARY MARKET A PAINEWEBBER INC GROUP SET YIELDS FOR THE CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY'S 3338 MILLION ISSUE OF REFUNDING BONDS THERE WAS A REPRICING YESTERDAY AFTERNOON DUE TO STRONG DEMAND AND SOME YIELDS WERE LOWERED 003 TO 005 PERCENTAGE POINT FOR BOTH THE 1306 MILLION OF 1994 SERIES A HEALTH FACILITY REFUNDING REVENUE BONDS AND THE 2032 MILLION OF 1994 SERIES B HEALTH FACILITY REFUNDING REVENUE BONDS AFTER THE REPRICING THE 1994 SERIES A BONDS WERE PRICED TO YIELD FROM 234 IN 1994 TO 542 IN 2019 THOSE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE 1994 SERIES B BONDS WERE PRICED TO YIELD FROM 234 IN 1994 TO 547 IN 2021 THEY ARE INSURED BY AMBAC INDEMNITY CORP AND ALSO CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P PRICES OF MORTGAGE SECURITIES MOVED HIGHER THOUGH NOT MATCHING THE GAINS OF THE TREASURY MARKET MORTGAGES OFTEN LAG BEHIND TREASURYS IN A MARKET RALLY IN PART BECAUSE OF THE PREPAYMENT CONCERNS THAT GREET ANY SLIP IN RATES BUT MORTGAGES ALSO MAY HAVE BEEN UNDER SOME PRESSURE AFTER HAVING REACHED FAIRLY HIGH LEVELS THE YIELDS ON CURRENT COUPONS OR MORTGAGES WITH COUPONS OF 65 HAVE NARROWED CONSIDERABLY TO THE BENCHMARK TREASURY 10YEAR NOTE SINCE LAST FRIDAY AS DEALERS HAVE SCOOPED UP COLLATERAL FOR REAL ESTATE MORTGAGE INVESTMENT TRUSTS IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FOR JANUARY DELIVERY ENDED 8/32 HIGHER AT 99 8/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES ENDED 9/32 HIGHER AT 99 14/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES ENDED 9/32 HIGHER AT 99 10/32 DESPITE YESTERDAY'S DROP IN RATES THE PREVAILING VIEW IN THE MORTGAGE MARKET IS THAT PREPAYMENTS DUE TO HOMELOAN REFINANCINGS WILL SLOW MARKEDLY THIS YEAR THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9401070036 940107 BUSINESS BRIEF ASAHI BREWERIES LTD VENTURE WITH ITOCHU TO BUY 75 STAKE IN CSI BREWERY JAPANESE CONCERNS ASAHI BREWERIES LTD AND ITOCHU CORP ANNOUNCED THURSDAY THAT THEY REACHED AN AGREEMENT TO BUY A 75 STAKE IN HONG KONGBASED CSI BREWERY LTD FROM CHINA STRATEGIC INVESTMENT LTD THE PURCHASE GIVES THE BEER MAKER AND THE TRADING HOUSE MANAGEMENT RIGHTS OVER THREE BREWERS IN CHINA HONGZHOU ZHONGCE BEER CO QUANZHOU CSI BEER CO AND HONGZHOU ZHONGCE BEER CO'S JIAXING CO THE INVESTMENT INCLUDING VALUE OF SHARES AND OUTLAYS TO EXPAND PRODUCTION EQUIPMENT AT HONGZHOU ZHONGCE TOTALS ABOUT 35 MILLION AN ASAHI SPOKESMAN SAID ASAHI BREWERIES WILL PROVIDE TECHNICAL SUPPORT AND WILL LICENSE PRODUCTION TO THE THREE BREWERIES IN CHINA THE TWO JAPANESE COMPANIES WILL CONTROL THE BREWERIES THROUGH A STAKE IN CHINA STRATEGIC INVESTMENT OF WHICH ASAHI BREWERIES WILL TAKE 45 WHILE ITOCHU WILL HOLD 30 OF THE HONG KONGBASED COMPANY 9401070035 940107 BUSINESS BRIEF GENERAL ELECTRIC CO UNIT PLANS TO OFFER A LINE OF FUNDS THROUGH BANKS GENERAL ELECTRIC CO STAMFORD CONN SAID ITS GE INVESTMENTS UNIT WILL OFFER A LINE OF MUTUAL FUNDS THROUGH BANKS THE FAMILY OF SIX FUNDS WAS LAUNCHED A YEAR AGO BUT THEY HAVEN'T BEEN AVAILABLE THROUGH BANKS INCLUDED ARE US EQUITY GLOBAL EQUITY TAXEXEMPT FIXED INCOME STRATEGIC INVESTMENT AND MONEYMARKET MUTUAL FUNDS GE INVESTMENTS WHICH CURRENTLY MANAGES ABOUT 9 BILLION IN MUTUAL FUNDS FOR EMPLOYEES AS WELL AS SAVINGS AND BENEFIT PLANS SAID THE NEW MUTUAL FUNDS WILL INITIALLY BE OFFERED THROUGH NEW YORKBASED CHEMICAL BANKING CORP AND FOUNDERS BANK NAPLES FLA 9401070034 940107 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION COLOMBIA AN OFFERING OF UP TO 200 MILLION OF NOTES VIA MERRILL LYNCH & CO JP MORGAN SECURITIES INC AND SALOMON BROTHERS INC EASTMAN CHEMICAL CO A SHELF OFFERING FOR 900 MILLION OF DEBT SECURITIES VIA GOLDMAN SACHS & CO MERRILL LYNCH AND MORGAN STANLEY & CO HEALTHDYNE INC AN OFFERING OF 1720000 COMMON SHARES AND A PARTIAL EXCHANGE OFFERING UPON EFFECTIVENESS OF THE REGISTRATION STATEMENT FOR 2150000 SHARES OF THE COMMON STOCK OF ITS HOME NUTRITIONAL SERVICES INC UNIT BASED ON 08 SHARE OF HEALTHDYNE STOCK FOR EACH SHARE OF HOME NUTRITIONAL SERVICES STOCK TENDERED LA T SPORTSWEAR INC AN INITIAL OFFERING OF 12 MILLION COMMON SHARES VIA ROBINSONHUMPHREY CO 9401070033 940107 POTOMAC WATCH WHAT DID HE KNOW AND WHEN DID HE KNOW IT BY PAUL A GIGOT WHEN THE WHITE HOUSE SACKED EVERY SITTING US ATTORNEY LAST MARCH THIS SPACE HYPERBOLICALLY DEPLORED THE MOST SECRETIVE AND DEEPLY POLITICAL ADMINISTRATION SINCE RICHARD NIXON'S BY NOW THAT LOOKS UNDERSTATED WHITEWATER MAY NOT BE WATERGATE BUT THE CLINTON WHITE HOUSE'S SKILL IN HANDLING THE REAL ESTATES&L SUSPICIONS HAS CERTAINLY EARNED IT THE RIGHT TO BE CALLED NIXONIAN ITS GIFT FOR INSPIRING SUSPICION IN REPORTERS ITS MASTERY OF THE SELFINFLICTED WOUND AND ITS TALENT FOR SEEMING UNCOOPERATIVE AND SLIPPERY ARE ALL QUALITIES WORTHY OF THE MASTER HIMSELF HAVING WORKED AS STAFFERS ON THE HOUSE COMMITTEE TO IMPEACH MR NIXON HILLARY CLINTON AND WHITE HOUSE COUNSEL BERNIE NUSSBAUM MAY HAVE ABSORBED MORE POLITICAL LESSONS THAN THEY EVER IMAGINED AS JOHN LE CARRE ONCE WROTE ABOUT THE CIA AND KGB MAYBE THEY FOUGHT A LOOKINGGLASS WAR LET'S EXAMINE HOW THE CLINTONS HAVE TURNED A SEEMINGLY SMALL SCANDAL INTO A POTENTIALLY MUCH BIGGER ONE INVOLVING THE ABUSE OF PRESIDENTIAL POWER THE NONDENIAL DENIAL THIS WHITE HOUSE IS ADEPT AT NOT GIVING A STRAIGHT ANSWER SO WHITEWATER WAS JUST OLD STORIES THAT WERE ALREADY INVESTIGATED NATURALLY THESE DISMISSALS NONDENIALS ONLY RAISED SUSPICIONS WHEN REPORTERS DISCOVERED NEW STORIES EG THAT THE LAWYER RETAINED BY THE CLINTONS TO INVESTIGATE WHITEWATER IN 1992 HAD IGNORED LARGE TRANSACTIONS THE COVERUP WHEN VINCENT FOSTER THE CLINTONS' PERSONAL LAWYER SHOT HIMSELF IN SECLUDED FORT MARCY LAST SUMMER THE WHITE HOUSE RESPONSE WAS TO BLAME THE PRESS A CHORUS LINE OF COMMENTARY ACCUSED THIS NEWSPAPER IN PARTICULAR BUT WE'VE SINCE LEARNED THAT THE TROUBLED MR FOSTER HAD MORE ON HIS MIND THAN TART EDITORIALS AS THE LAWYER PUTTING TOGETHER THE CLINTONS' PRESIDENTIAL BLIND TRUST HE HANDLED THE FIRST COUPLE'S PERSONAL FINANCES YET HE WAS WELL BEHIND THE PACE OF ANY RECENT PRESIDENCY IN ESTABLISHING THAT BLIND TRUST WHICH WAS FINALLY AND QUIETLY FILED A WEEK AFTER HE DIED WHAT TOOK SO LONG ON THE DAY HE DIED MR FOSTER RECEIVED A PHONE CALL FROM JAMES LYONS THE LAWYER HE'D HIRED TO FILE THE CLINTONS' 1992 WHITEWATER REPORT ON THE SAME DAY TOO A SUBPOENA WAS ISSUED TO SEARCH THE LITTLE ROCK OFFICES OF DAVID HALE A FORMER JUDGE APPOINTED BY MR CLINTON MR HALE HAS SINCE BEEN INDICTED AND HAS ACCUSED MR CLINTON OF BENEFITING FROM A 300000 LOAN MR HALE MADE TO A BUSINESS PARTNER OF THE CLINTONS PERHAPS THESE ARE COINCIDENCES BUT THEY RAISE DOUBTS ESPECIALLY BECAUSE THE WHITE HOUSE HAS BEEN SO EAGER TO BLUNT QUERIES ABOUT MR FOSTER THE PROBE OF HIS DEATH WAS CONFINED TO THE PARK POLICE WHO HAVE NO EXPERTISE IN MYSTERIOUS DEATHS THEIR REPORT ALSO REMAINS A SECRET THOUGH THE JUSTICE DEPARTMENT PROMISED TO MAKE IT PUBLIC AND DON'T FORGET THE EARLY SACKING OF THOSE US ATTORNEYS THAT MEANT MR CLINTON COULD NOMINATE PAULA CASEY A FORMER CAMPAIGN WORKER OF HIS TO THE LITTLE ROCK US ATTORNEY'S POST THAT WOULD INVESTIGATE WHITEWATER SHE HAS SINCE RECUSED HERSELF BUT NOT BEFORE RECOMMENDING TO WASHINGTON THAT A CRIMINAL REFERRAL OF THE CASE TO JUSTICE BY THE RESOLUTION TRUST CORP NOT BE PURSUED A MODIFIED LIMITED HANGOUT CLINTON SPINMEISTERS KNOW THE ZIEGLERESQUE VALUE OF APPEARING TO BE FORTHCOMING EVEN WHILE STONEWALLING SO A DEC 23 DECISION TO RELEASE WHITEWATER DOCUMENTS TAKEN IN SECRET FROM MR FOSTER'S OFFICE WAS HAILED BY THE LIKES OF GEORGE STEPHANOPOULOS AS COMING CLEAN BUT NOW WE LEARN THAT THIS DISCLOSURE WAS RIGGED BY THE WHITE HOUSE SO AS TO AVOID HAVING TO MAKE ANY DOCUMENTS PUBLIC BY CONSPIRING TO HAVE JUSTICE ISSUE A SUBPOENA FOR THE DOCUMENTS THE WHITE HOUSE MADE SURE NOSY REPORTERS CAN'T OBTAIN THOSE DOCUMENTS UNDER THE FREEDOM OF INFORMATION ACT BILL CLINTON HAS ONE ADVANTAGE RICHARD NIXON NEVER HAD A CONGRESS OF HIS OWN PARTY HOUSE BANKING CHAIRMAN HENRY GONZALEZ WHO DID YEOMAN WORK ON THE KEATING FIVE HAS SUDDENLY LOST INTEREST IN S&LS THAT'S WHY EVEN IOWA REPUBLICAN JIM LEACH THE LEAST PARTISAN MEMBER OF CONGRESS HAS CALLED FOR A SPECIAL COUNSEL THIS IS NOT DESPITE CLAIMS BY CLINTON PARTISANS THE SAME THING AS A LAWRENCE WALSHTYPE INDEPENDENT COUNSEL BARNEY FRANK D MASS WANTS TO USE WHITEWATER TO REVIVE THAT LAW RAMMING IT THROUGH THE HOUSE WITHOUT ALLOWING A VOTE ON WHETHER IT SHOULD COVER CONGRESS AS WELL AS THE EXECUTIVE BRANCH BUT THIS COULD ACTUALLY HELP A COVERUP BECAUSE A WHITEWATER WALSH COULD KEEP DOCUMENTS UNDER WRAPS FOR YEARS AS SCHOLAR TERRY EASTLAND REMINDS ME WATERGATE AND EVEN TEAPOT DOME WERE INVESTIGATED BY SPECIAL PROSECUTORS WITHOUT THE RUNAWAY HAIRTRIGGER WALSHTYPE STATUTE WHITEWATER COULD BE AS WELL IF THE COUNSEL WERE SOMEONE WITH THE PROVEN INTEGRITY OF MANHATTAN DA ROBERT MORGENTHAU SUCH A COUNSEL WOULD AT LEAST BE SUBJECT TO POLITICAL CONSTRAINTS THE WAY A WALSHTYPE COUNSEL ISN'T EVEN BETTER WOULD BE A TELEVISED CONGRESSIONAL HEARING A LA THE KEATING FIVE SO VOTERS COULD DECIDE FOR THEMSELVES WITH AN ADMINISTRATION AS NIXONIAN AS THIS ONE HOW ELSE IS IT GOING TO RESTORE ITS CREDIBILITY 9401070032 940107 INTERNATIONAL BRIEF AIRBUS INDUSTRIE EUROPE'S AIRCRAFT ALLIANCE POSTS 78 REVENUE INCREASE AIRBUS INDUSTRIE EUROPE'S LARGE COMMERCIAL AIRCRAFT CONSORTIUM SAID ITS REVENUE ROSE 78 IN 1993 TO 83 BILLION DESPITE A DEPRESSED MARKET THE GROUP CONSISTING OF AEROSPATIALE SA OF FRANCE DAIMLERBENZ AG'S DEUTSCHE AEROSPACEAIRBUS GMBH OF GERMANY BRITISH AEROSPACE PLC OF THE UK AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN SAID IT SAW SOME SIGNS IN 1993 THAT THE MARKET DOWNTURN WAS BOTTOMING OUT WITH SOME AIRLINES APPARENTLY MOVING OUT OF THE RED IT ADDED THERE ARE GROUNDS FOR CAUTIOUS OPTIMISM BUT AIRBUS INDUSTRIE SAID IT DOESN'T ANTICIPATE A FULL RECOVERY IN DEMAND FOR AIRLINERS BEFORE THE SECOND HALF OF THE DECADE UNDERLINING THE WEAKNESS OF THE MARKET THE CONSORTIUM BOOKED 38 NEW FIRM ORDERS LAST YEAR VALUED AT 35 BILLION COMPARED WITH 136 ORDERS VALUED AT 98 BILLION IN 1992 THE NEW ORDERS HOWEVER WERE MORE THAN OFFSET BY 69 CANCELLATIONS 9401070031 940107 BUSINESS BRIEF HEALTHSOUTH REHABILITATION CORP DEAL WITH NATIONAL MEDICAL FOR HOSPITALS IS COMPLETED HEALTHSOUTH REHABILITATION CORP BIRMINGHAM ALA SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF 28 REHABILITATION HOSPITALS AND 45 OUTPATIENT CENTERS FROM NATIONAL MEDICAL ENTERPRISES INC REHABILITATION HOSPITALS OFFER INTENSIVE TREATMENT TO HELP PATIENTS IMPROVE THEIR PHYSICAL CAPABILITIES AFTER A STROKE WORKPLACE INJURY OR OTHER TRAUMA NATIONAL MEDICAL SAID IT PLANNED TO CONCENTRATE ON ITS ACUTECARE HOSPITALS NATIONAL MEDICAL IS UNDER SERIOUS FINANCIAL STRAIN BECAUSE IT FACES ENORMOUS LEGAL LIABILITIES IN PENDING INSURANCECOMPANY MALPRACTICE AND SHAREHOLDER LAWSUITS ACCUSING IT OF BILLING FRAUD AND PATIENT ABUSE AT ITS PSYCHIATRIC HOSPITALS IT ALSO IS THE SUBJECT OF A JUSTICE DEPARTMENT INVESTIGATION OF SUSPECTED CRIMINAL MISCONDUCT BUT ANALYSTS TENDED TO ENDORSE THE COMPANY'S CONTENTION THAT THE DEAL WAS DRIVEN AS MUCH BY STRATEGIC CONSIDERATIONS AS BY THE NEED TO RAISE CASH NATIONAL MEDICAL ENTERPRISES INC HAS RESOLVED ALL MAJOR LITIGATION WITH INSURERS AND WITH MORE THAN HALF OF PSYCHIATRIC PATIENTS IN DISPUTES INVOLVING THE COMPANY'S PSYCHIATRIC HOSPITALS THE COMPANY ALSO HAS ESTABLISHED RESERVES FOR ALL REMAINING CIVIL LITIGATION AN ARTICLE FRIDAY REPORTED INCORRECTLY THAT NATIONAL MEDICAL IS UNDER SERIOUS FINANCIAL STRAIN BECAUSE MUCH OF THE LITIGATION WAS STILL PENDING 9401070029 940107 PHILIPPINE INFLATION GROWS MANILA PHILIPPINES THE PHILIPPINES' YEARONYEAR INFLATION RATE IN DECEMBER ROSE TO 84 FROM 8 IN NOVEMBER AND FROM 82 IN THE YEARAGO PERIOD THE NATIONAL STATISTICS OFFICE REPORTED FOR THE YEAR THE AVERAGE INFLATION RATE REACHED 76 NATIONWIDE WHICH IS ALMOST ON PAR WITH THE GOVERNMENT'S TARGET AVERAGE INFLATION RATE OF 75 FOR 1993 AND LOWER THAN THE AVERAGE OF 89 IN 1992 9401070028 940107 SOVEREIGN BANCORP'S CHAIRMAN STRIKES BACK BY FILING COUNTERSUIT WYOMISSING PA IN THE LATEST CHAPTER OF AN UNUSUAL CORPORATE DISPUTE THE CHAIRMAN OF SOVEREIGN BANCORP INC STRUCK BACK AT COMPANY OFFICERS WHO FILED A LAWSUIT AGAINST HIM TWO WEEKS AGO BY FILING A COUNTERSUIT SOVEREIGN CHAIRMAN FREDERICK J JAINDL CHARGES IN A LAWSUIT FILED IN PHILADELPHIA FEDERAL DISTRICT COURT THAT PRESIDENT AND CHIEF EXECUTIVE OFFICER JAY S SIDHU AND OTHERS ACTED ILLEGALLY BY PERSUADING THE BANK TO SUE HIM AND SEVERAL OTHER DIRECTORS ON DEC 20 THE BANK HOLDING COMPANY ANNOUNCED THAT IT HAD BROUGHT SUIT AGAINST MR JAINDL AND OTHERS FOR ALLEGEDLY FAILING TO DISCLOSE EFFORTS TO SELL THE COMPANY UNDER TERMS THAT WEREN'T IN THE BEST INTERESTS OF SHAREHOLDERS TERMING THE ACTION A JOKE MR JAINDL SAID AT THE THE TIME THAT THE OFFICERS SUED IN ORDER TO BLOCK SOVEREIGN FROM CONSIDERING OVERTURES MADE BY TWO OTHER LARGE BANKING CONCERNS MR JAINDL MAINTAINED THAT MR SIDHU HOLDS OPTIONS THAT WOULD BE MADE WORTHLESS IF THE COMPANY'S OWNERSHIP WERE TO CHANGE IN THE COUNTERSUIT MR JAINDL ASSERTS THAT MR SIDHU STANDS TO ENJOY SUBSTANTIAL MONETARY GAINS IF A SALE OF SOVEREIGN IS POSTPONED OR AVOIDED THE SUIT ASKS THE COURT TO ENJOIN THE BANK'S OFFICERS FROM CONTINUING THEIR LAWSUIT TO PAY UNSPECIFIED DAMAGES TO SOVEREIGN AND TO BE REQUIRED TO PAY THEIR OWN LEGAL FEES MR SIDHU DENIED THE CHARGES AGAINST HIM AND SAID THAT CONTRARY TO MR JAINDL'S ALLEGATIONS AS SOVEREIGN'S SECONDLARGEST INDIVIDUAL SHAREHOLDER HE STANDS TO GAIN A GREAT DEAL FROM THE SALE OF THE COMPANY THE WHOLE POINT ISN'T WHETHER THE BANK SHOULD BE SOLD HE SAID BUT IS IT IN THE INTEREST OF SHAREHOLDERS TO PURSUE ALL OFFERS OR JUST THOSE THAT MR JAINDL IS INTERESTED IN SEPARATELY MR JAINDL RENEWED HIS CALL TO THE BOARD TO HIRE AN INVESTMENT BANK TO EXAMINE THE POSSIBLE SALE OF THE COMPANY SOVEREIGN IS A SAVINGS BANK WITH 43 BILLION IN ASSETS AND 79 OFFICES IN EASTERN PENNSYLVANIA AND CENTRAL NEW JERSEY 9401070027 940107 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 BANK OF NEW YORK DELAWARE 250 MILLION OF FLOATINGRATE BANK NOTES DUE JAN 13 1996 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL PAY QUARTERLY AND FLOAT WEEKLY AT 18 BASIS POINTS OVER THREEMONTH TREASURY BILLS THE FIRST COUPON WILL BE SET JAN 10 RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC BANK OF NEW YORK DELAWARE IS A UNIT OF BANK OF NEW YORK CO CENCALL COMMUNICATIONS CORP 250 MILLION PROCEEDS OF SENIOR REDEEMABLE DISCOUNT NOTES DUE JAN 15 2004 PRICED AT 60994 TO YIELD 10125 ACCORDING TO MCM CORPORATEWATCH THE BONDS PAY NO INTEREST FOR FIVE YEARS AND THEREAFTER HAVE A 10125 COUPON THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED CAA BY MOODY'S THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CIT GROUP HOLDINGS INC 250 MILLION OF FLOATINGRATE NOTES DUE JAN 15 1999 PRICED AT PAR ACCORDING TO BONDATA CORPORATE SERVICE THE COUPON ON THE NONCALLABLE NOTES WILL BE SET JAN 11 AND WILL PAY AND FLOAT QUARTERLY AT 0125 BASIS POINT OVER THREEMONTH LONDON INTERBANK OFFERED RATE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CIT IS 40 OWNED BY CHEMICAL BANKING CORP AND 60 OWNED BY DAIICHI KANGYO BANK LTD FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF STEPUP MEDIUMTERM NOTES DUE JAN 19 1999 PRICED AT PAR TO YIELD 432 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 28 BASIS POINTS ABOVE TREASURYS THE COUPON RISES TO 584 AFTER ONE YEAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FORD MOTOR CREDIT CO 500 MILLION OF NOTES DUE JAN 15 1999 PRICED AS 5625S AT 99857 TO YIELD 5658 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO UNION PACIFIC CORP 879 MILLION OF EQUIPMENT TRUST CERTIFICATES DUE FEB 1 2004 PRICED INITIALLY AT PAR TO YIELD 612 ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES NONCALLABLE FOR SEVEN YEARS WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED DOUBLEA1 BY MOODY'S AND DOUBLEAPLUS BY S&P AND SOLD THROUGH A COMPETITIVE BID WON BY GOLDMAN SACHS & CO WACHOVIA BANKNORTH CAROLINA 100 MILLION OF FLOATINGRATE MEDIUMTERM BANK NOTES DUE JAN 15 1996 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE COUPON WILL PAY AND FLOAT QUARTERLY AT 625 BASIS POINTS UNDER THE THREEMONTH LIBOR THE FIRST COUPON WILL BE SET JAN 14 RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO WACHOVIA IS A UNIT OF FIRST WACHOVIA CORP ADELPHIA COMMUNICATIONS CORP 88 MILLION CLASS A COMMON SHARES PRICED AT 18 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY 3338 MILLION OF BONDS PRICED BY A PAINEWEBBER INC GROUP THE 1306 MILLION OF 1994 SERIES A HEALTHFACILITY REFUNDING REVENUE BONDS ARE PRICED TO YIELD FROM 234 IN 1995 TO 542 IN 2019 THESE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P YIELDS FOR THE 2032 MILLION OF 1994 SERIES B HEALTHFACILITY REFUNDING REVENUE BONDS RANGE FROM 234 IN 1995 TO 547 IN 2021 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P AMERICAN EXPRESS BANK LTD US PARENT 200 MILLION OF SUBORDINATED FLOATINGRATE EURONOTES DUE FEBRUARY 2004 AT ISSUE AND REOFFER PRICE 9975 VIA LEHMAN BROTHERS INTERNATIONAL PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LIBOR PLUS 10 BASIS POINTS MINIMUM COUPON 5 FEES 05 AMERICAN TELEPHONE & TELEGRAPH CO US 400 MILLION OF 55 EUROBONDS DUE FEB 1 1999 AT ISSUE PRICE 10117 VIA CS FIRST BOSTON LTD REOFFERED AT 99595 TO YIELD 56 A MARGIN OF 25 BASIS POINTS ABOVE FIVEYEAR US TREASURY FEES 1875 AUSTRIA SOVEREIGN 60 BILLION YEN OF 375 EUROBONDS DUE FEB 3 2009 AT ISSUE AND REOFFER PRICE 9921 VIA GOLDMAN SACHS INTERNATIONAL LTD AND IBJ INTERNATIONAL LTD BONDS YIELD 382 FEES 0375 BHF FINANCE NETHERLANDS BV GERMAN PARENT 200 MILLION MARKS OF 6 BONDS DUE FEB 10 2004 AT ISSUE PRICE PAR VIA BERLINER HANDELSUND FRANKFURTER BANK GUARANTOR BHF BANK FEES UNDISCLOSED CANADIAN WHEAT BOARD CANADIAN AGENCY 250 MILLION OF 475 EUROBONDS DUE FEB 3 1997 AT ISSUE PRICE 1011075 VIA UBS LTD REOFFERED AT 9992 TO YIELD 478 LAUNCHED OFF EUROMEDIUMTERM NOTE PROGRAM FEES 1375 DEUTSCHE BAUUND BODEN BANK AG GERMANY 100 MILLION MARKS OF REVERSECOUPON COLLARED FLOATINGRATE NOTES DUE FEB 4 2004 AT ISSUE PRICE 1013 VIA DEUTSCHE GENOSSENSCHAFTSBANK COUPON 56 ANNUAL FOR FIRST THREE YEARS THEREAFTER SEMIANNUAL COUPON FLAT AT SIXMONTH MARK LIBOR MINIMUM COUPON 5 MAXIMUM 725 FEES 17 LESS 015 FOR LEAD MANAGER DSL FINANCE BV AMSTERDAM GERMAN PARENT ONE BILLION MARKS OF 5 EUROBONDS DUE FEB 9 1999 AT ISSUE PRICE 10115 VIA DRESDNER BANK AG REOFFERED AT 994 TO YIELD 514 A MARGIN OF 12 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT NOTE GUARANTOR DEUTSCHE SIEDLUNGSUND LANDESRENTENBANK FEES TWO EUROPEAN COAL AND STEEL COMMUNITY SUPRANATIONAL 50 MILLION OF 6875 EUROBONDS DUE JAN 25 2019 AT ISSUE AND REOFFER PRICE 99718 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BONDS YIELD 69 A SPREAD OF 25 BASIS POINTS ABOVE 875 UK GILT OF 2017 FEES UNDISCLOSED FORD CREDIT EUROPE PLC US PARENT 100 MILLION OF FLOATINGRATE EURONOTES DUE FEBRUARY 1999 AT ISSUE AND REOFFER PRICE 9985 VIA BARING BROTHERS & CO PAYABLE QUARTERLY AT THREEMONTH POUND LIBOR PLUS 025 BONDS CALLABLE AT PAR AFTER THREE YEARS LAUNCHED OFF EURO MEDIUMTERM NOTE PROGRAM FEES 0225 STATE BANK OF NEW SOUTH WALES AUSTRALIA 250 MILLION AUSTRALIAN DOLLARS OF 7 EUROBONDS DUE FEB 16 2004 AT ISSUE PRICE 101375 VIA DEUTSCHE BANK AG LONDON BONDS YIELD 725 AFTER FEES OF 2125 A MARGIN OF 23 BASIS POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT BOND GUARANTOR GOVERNMENT OF NEW SOUTH WALES 9401070026 940107 CORRECTIONS & AMPLIFICATIONS TIBOR NAGY JR OF THE TUCSON ARIZ LAW FIRM SNELL & WILMER REPRESENTED MCDONNELL DOUGLAS HELICOPTER CO A UNIT OF MCDONNELL DOUGLAS CORP IN A WRONGFULTERMINATION SUIT THAT WAS DESCRIBED IN AN ARTICLE LAST FRIDAY THE ARTICLE INCORRECTLY REPORTED THAT MR NAGY REPRESENTED THE PLAINTIFF IN THE CASE 9401070025 940107 AMERICA WEST STOCK POSTED STRONG GAINS IN '93 AS FIRM WEIGHED TAKEOVER OFFERS BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL THE DISCLOSURE LAST MONTH THAT AMERICA WEST AIRLINES HAS ONE FIRM BUYOUT OFFER AND AS MANY AS FIVE MORE IN THE WINGS HAS SENT THE STOCK OF THE PHOENIXBASED CARRIER FLYING IN RECENT WEEKS THE STOCK WHICH CLOSED AT 153 A SHARE YESTERDAY IN NASDAQ STOCK MARKET TRADING IS BARELY AIRBORNE IN COMPARISON TO RIVALS BUT THE SURGE FROM 19 CENTS A SHARE IN DECEMBER 1992 TO 143 LAST MONTH MADE AMERICA WEST THE BESTPERFORMING AIRLINE STOCK IN 1993 WITH ITS SHARES RISING MORE THAN 600 IN VALUE WE HAVE INDIVIDUALS SEEING A VERY PROFITABLE COMPANY AND A LOWPRICED EQUITY AND SAYING AHA HERE'S A WAY TO MAKE SOME MONEY' SAYS SAM BUTTRICK AN AIRLINE ANALYST WITH KIDDER PEABODY INC THEY'RE OVERLOOKING THE SOMEWHAT DELICATE FACT THAT AMERICA WEST IS OPERATING IN CHAPTER 11 AND THE DISPOSITION OF ITS EQUITY IS UNCERTAIN AT BEST AMERICA WEST HAS BEEN OPERATING UNDER BANKRUPTCYCOURT PROTECTION SINCE 1991 INDEED MUCH OF THE STOCK'S RECENT MOVEMENT APPEARS TO BE THE RESULT OF A SHORT SQUEEZE AMONG INVESTORS BETTING THE AIRLINE'S WARNINGS ARE TRUE THAT IT WILL WIPE OUT COMMON AND PREFERRED SHARES ONCE IT EMERGES FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION THE NUMBER OF SHARES HELD BY SHORTSELLERS THOSE WHO SELL BORROWED STOCK HOPING TO MAKE A PROFIT WHEN THE PRICE DROPS NEARLY DOUBLED SINCE MIDOCTOBER RISING TO 71 OF THE AIRLINE'S 253 MILLION SHARES OUTSTANDING AT DEC 15 FROM 37 ON OCT 15 BENJAMIN WAISBRAN AN ATTORNEY REPRESENTING AMERICA WEST EQUITY HOLDERS SAYS REPORTS THAT THE COMPANY MAY WIPE OUT EQUITY ARE PREMATURE MR WAISBRAN A PARTNER IN THE CHICAGO LAW FIRM LORD BISSEL & BROOK SAYS WE'RE TAKING THE POSITION IN THIS CASE THAT THIS COMPANY HAS VALUE SUFFICIENT TO PROVIDE RECOVERY FOR SHAREHOLDERS THE EXTENT OF THAT RECOVERY WE DO NOT KNOW HE MAINTAINS THAT THE COMPANY BY REISSUING WARNINGS ABOUT THE EQUITY IS PLAYING INTO THE HANDS OF SHORTSELLERS SPECULATING ON THE STOCK AMERICA WEST CURRENTLY IS WEIGHING A 250 MILLION BID FOR 80 OF THE COMPANY FROM NEW YORK INVESTOR MICHAEL STEINHARDT THE COMPANY SAYS IT HAS SIGNED NONDISCLOSURE AGREEMENTS WITH FIVE OTHER COMPANIES AND THE DEADLINE FOR BIDS IS FEB 10 IN THE MEANTIME AMERICA WEST HASN'T CHANGED ITS POSITION ON THE STOCK WE'VE BEEN TELLING PEOPLE IT'S RISKY TO HOLD THE STOCK A SPOKESMAN SAID 9401070024 940107 MEN'S WEARHOUSE SALES RISE FREMONT CALIF MEN'S WEARHOUSE SAID DECEMBER SALES INCREASED 42 TO 405 MILLION FROM 285 MILLION A YEAR EARLIER THE MEN'S RETAILER SAID SALES AT STORES OPEN AT LEAST A YEAR GREW 18 9401070023 940107 US JUDGE ORDERS KOREAN FIRM TO STOP MAKING DIAMONDS IN GE THEFT CASE BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN AN UNUSUALLY TOUGH INJUNCTION A FEDERAL JUDGE ORDERED THAT A SOUTH KOREAN COMPANY BE BANNED FROM MAKING HIGHGRADE INDUSTRIAL DIAMONDS BECAUSE THE TECHNOLOGY WAS STOLEN FROM GENERAL ELECTRIC CO IN BOSTON US DISTRICT COURT JUDGE NATHANIEL GORTON RULED THAT ILJIN CORP OF SEOUL IS FORBIDDEN TO PRODUCE THE INDUSTRIAL DIAMONDS FOR A PERIOD OF SEVEN YEARS IN MOST CASES WHERE TECHNOLOGY IS STOLEN US JUDGES ORDER ONLY THAT THE OFFENDER NOT USE THE TECHNOLOGY ONLY RARELY DO THEY IMPOSE A PRODUCTION BAN JUDGE GORTON ALSO ORDERED THAT ILJIN EITHER DESTROY OR RETURN TO GENERAL ELECTRIC THE TOOLING BASED ON GE'S TRADE SECRETS IN SEOUL ILJIN HAS 20 HUGE PRESSES MAKING INDUSTRIAL DIAMONDS AND THE ORDER WOULD MEAN THAT THE COMPANY WOULD HAVE TO REMOVE CRITICAL TOOLING FROM THOSE PRESSES THE RULING WOULD RESHAPE THE WORLD'S INDUSTRIAL DIAMOND INDUSTRY IN ADDITION TO ILJIN AND GE THERE ARE ONLY THREE OTHER MAJOR MAKERS OF HIGH GRADE SYNTHETIC DIAMONDS INCLUDING A GERMAN COMPANY A JAPANESE COMPANY AND THE BIGGEST PRODUCER A UNIT OF DE BEERS CONSOLIDATED MINES LTD REMOVING ILJIN WOULD ELIMINATE ONE OF THE FIVE MAJOR PRODUCERS OF THE DIAMONDS WHICH ARE USED IN INDUSTRY TO CUT VERY HARD MATERIALS THE SIZE OF THE WORLDWIDE INDUSTRIAL DIAMOND MARKET ISN'T KNOWN BECAUSE THE COMPANIES DON'T BREAK OUT THEIR SALES FIGURES IT IS HOWEVER CONSIDERED HIGHLY PROFITABLE WITH GE MAKING A 70 MILLION PROFIT IN 1989 ACCORDING TO A COURT DOCUMENT IN A DIFFERENT CASE ANOTHER QUESTION IS WHETHER THE KOREAN COMPANY WILL OBEY THE US COURT ORDER ILJIN HAS SOME ASSETS IN THIS COUNTRY WHICH COULD BE FROZEN IF IT DISOBEYS BUT IT ISN'T KNOWN HOW SUBSTANTIAL THE ASSETS ARE ILJIN'S ATTORNEY MICHAEL KEATING OF FOLEY HOAG & ELIOT IN BOSTON SAID THAT THE COMPANY WOULD BE APPEALING NOT ONLY THE INJUNCTION BUT ALSO THE EARLIER JURY VERDICT THAT ILJIN HAD MISAPPROPRIATED GE'S SECRETS MR KEATING SAID THAT THE INJUNCTION IS MORE BROAD THAN NECESSARY TO PROTECT GE'S INTERESTS ASKED WHETHER HIS CLIENT WOULD OBEY IT MR KEATING SAID THEY HAVE PARTICIPATED IN THE JUDICIAL PROCESS PLAYING BY US RULES AND I FULLY EXPECT THAT THEY WILL CONTINUE TO DO SO IN NEW YORK GE ATTORNEY SALEM KATSH OF WEIL GOTSHAL & MANGES REPLIED THAT THE JUDGE ENTERED THE ONLY KIND OF RELIEF THAT WOULD BE EFFECTIVE THE ILJIN CASE STEMS FROM THE DEPARTURE OF A SCIENTIST CHIENMIN SUNG FROM GE'S INDUSTRIAL DIAMOND UNIT IN 1984 WHEN MR SUNG TOOK ALONG ARMFULS OF GE CONFIDENTIAL DOCUMENTS IN 1988 MR SUNG AGREED TO SELL ILJIN TECHNOLOGY ON MAKING INDUSTRIAL DIAMONDS MR SUNG WAS SUBSEQUENTLY INDICTED AND CONVICTED OF TRANSPORTING STOLEN GE DOCUMENTS IN FEDERAL COURT IN BOSTON GE FILED ITS CIVIL SUIT AGAINST ILJIN CLAIMING THAT THE KOREAN COMPANY HAD KNOWINGLY PURCHASED STOLEN TECHNOLOGY IN HIS RULING JUDGE GORTON SAID THAT THE DIMENSIONS AND MATERIAL SPECIFICATIONS OF THE ILJIN EQUIPMENT ARE SUBSTANTIALLY SIMILAR AND IN SOME RESPECTS IDENTICAL TO GE'S EQUIPMENT JUDGE GORTON ADDED THAT HE WAS IMPOSING THE UNUSUAL PRODUCTION BAN BECAUSE THE TRADE SECRETS ARE INEXTRICABLY CONNECTED TO MANUFACTURING THE HIGHGRADE DIAMONDS IT TOOK GE AND OTHER PRODUCERS 20 YEARS TO DEVELOP THE TECHNOLOGY WHILE IT TOOK ILJIN ONLY TWO THE JUDGE NOTED ILJIN THE JUDGE SAID MADE A CALCULATED DECISION TO CIRCUMVENT THE EXPENSIVE AND DIFFICULT PROCESS OF DEVELOPING THEIR OWN HIGH GRADE DIAMOND TECHNOLOGY BY PURCHASING STOLEN GE TRADE SECRETS THE JUDGE MADE ONE EXCEPTION IN HIS ORDER ALLOWING ILJIN TO PRODUCE THE DIAMONDS IF IT LICENSES THE TECHNOLOGY FROM ANOTHER COMPANY BUT ONE INDUSTRY EXPERT SAID LICENSING COSTS MAY BE SO HIGH AS TO MAKE THIS OPTION IMPRACTICAL 9401070022 940107 REVIEW & OUTLOOK EDITORIAL MORE BILLETS THAN BODIES WITH THE ECONOMY GROWING AND STATE COFFERS FILLING WE CAN EXPECT A PUSH FOR PUBLIC EMPLOYMENT GROWTH BUT THE FACT IS IN MOST JURISDICTIONS THE GOVERNMENT PAYROLL GROWTH NEVER STOPPED FOR THE RECESSION THIS CAN BE SEEN BY COMPARING STATE AND LOCAL EMPLOYMENT FIGURES FOR JUNE 1990 TO JUNE 1993 FROM THE CENTER FOR THE STUDY OF THE STATES WITH CENSUS DATA FROM APRIL 1990 AND JULY 1993 THIS ALLOWS FOR POPULATION CHANGES WHICH OUGHT TO BE THE PRIMARY BASIS FOR ADJUSTMENTS IN THE SIZE OF THE PUBLIC SECTOR WHAT YOU SEE ARE SEVERAL CASES OF UNJUSTIFIED GOVERNMENT GROWTH MANY OF THEM IN THE SOUTH THE MOST FLAGRANT WAS KENTUCKY PUBLIC PAYROLL UP 121 POPULATION UP 28 THEN THERE'S ALABAMA 96 VS 36 AND MISSISSIPPI 82 VS 27 LESSER BUT SIZABLE DISPARITIES WERE SEEN IN ARKANSAS LOUISIANA SOUTH CAROLINA AND WEST VIRGINIA THE CONTRARY EXAMPLE WAS GEORGIA WHICH RESTRAINED TAXPAID EMPLOYEE GROWTH TO 1 WHILE THE STATE GREW BY 68 ELSEWHERE SOME BIG STATES WITH BUDGET TROUBLES MANAGED TO TIGHTEN THEIR BELTS MASSACHUSETTS WITH A STABLE POPULATION CUT ITS PUBLIC PAYROLL 64 NEW YORK LOPPED OFF 28 WHILE THE RESIDENT COUNT FOR THE STATE GREW A MEAGER 12 MARYLAND SLIGHTLY CUT ITS STATE AND LOCAL WORK FORCE EVEN AS IT ADDED 38 TO THE POPULATION AND CALIFORNIA'S POPULATION GREW 49 BUT ADDED ONLY 19 TO THE PUBLIC PAYROLL NEW ENGLAND WAS GENERALLY DISCIPLINED EXCEPT FOR MAINE WHERE THE PUBLIC WORK FORCE GREW AT THREE TIMES THE CENSUS COUNT IN THE MIDWEST NEBRASKA'S OFFICIAL RANKS EXPANDED MORE THAN TWICE AS FAST AS THE NUMBER OF RESIDENTS PUBLIC PAYROLLS IN MINNESOTA SOUTH DAKOTA MISSOURI AND IOWA ALSO OUTPACED THEIR POPULATIONS FLORIDA KEPT ITS RATIO NEARLY EVEN BUT THE RECORD WASN'T AS GOOD IN TEXAS AN 114 INCREASE IN THE GOVERNMENT SECTOR VS A 61 POPULATION GAIN NEXTDOOR OKLAHOMA HAD THE SAME PROBLEM UP 74 IN PAYROLL AND JUST 27 IN PEOPLE OTHER GROWTH STATES THAT RAN AHEAD OF THEMSELVES IN PUBLIC HIRING WERE UTAH 122 VS 8 POPULATION WASHINGTON 113 VS 8 NEVADA 238 VS 156 AND HAWAII 120 VS 58 WHEN THE POLITICIANS COME CALLING FOR MORE MONEY THE FIRST THING THAT VOTERS AND THEIR WATCHDOGS IN THE PRESS SHOULD DO IS TAKE A LOOK AT THIS KIND OF COMPARISON AND ASK THE OBVIOUS QUESTIONS 9401070021 940107 TJX COS POSTS GAINS FRAMINGHAM MASS TJX COS SAID SALES FOR THE FIVE WEEKS ENDED SATURDAY WERE 508 MILLION UP 13 FROM A YEAR AGO SALES AT STORES OPEN AT LEAST A YEAR ROSE 3 FOR THE 48 WEEKS ENDED SATURDAY SALES REACHED 345 BILLION UP 13 FROM 306 BILLION 9401070020 940107 CALIFORNIA INDEPENDENT CRUDEOIL FIRMS ARE CLOSING WELLS AS LOW PRICES PERSIST BY JULIE TRIEDMAN SPECIAL TO THE WALL STREET JOURNAL MANY INDEPENDENT OIL PRODUCERS IN CALIFORNIA ARE CLOSING MARGINALLY PRODUCTIVE WELLS AND SOME SMALLER OUTFITS SAY THEY MAY FACE BANKRUPTCY WITHIN MONTHS IF OIL PRICES STAY WHERE THEY ARE CALIFORNIA PRODUCERS HAVE LAID OFF PEOPLE BANKS ARE REVIEWING THEIR LOANS AND THEY HAVE SIMPLY SHUT DOWN THE PUMPS IN SOME CASES SAID JUDY LEON A SPOKESWOMAN FOR THE INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA IN WASHINGTON DC THE SLIDE IN CRUDE OIL PRICES SINCE OCTOBER HAS SHAKEN OILDRIVEN ECONOMIES WORLDWIDE CURRENTLY CALIFORNIA HEAVY CRUDES SELL FOR ABOUT 8 A BARREL ROUGHLY 6 BELOW THE US BENCHMARK WEST TEXAS INTERMEDIATE PRODUCERS SAY THAT NOT ONLY CALIFORNIA'S ECONOMIC HEALTH BUT LONGTERM PRODUCTION CAPACITY ITSELF COULD DETERIORATE RAPIDLY IF CURRENT PRICES CONTINUE THE INDEPENDENTS AT HIGHEST RISK CARRY HIGH DEBT AND DON'T OWN THE LAND ON WHICH THEY MINE INSTEAD THEY MUST SHELL OUT STEEP ROYALTY FEES TO LANDOWNERS FOR THE RIGHT TO PUMP THE OIL IN ADDITION MOST OF THE CRUDE PRODUCED IN CALIFORNIA IS HEAVY CRUDE THE DAYTODAY COST OF EXTRACTING HEAVY CRUDES EXCEEDS THAT OF THE LIGHTER GRADES FOUND IN MOST OTHER REGIONS OF THE US UNLIKE LIGHTERGRADE FREEFLOWING CRUDES CALIFORNIA HEAVY CRUDES MUST FIRST BE SOFTENED BY HEAT AND THEN FORCED OUT OF THE GROUND BY STEAM AFTER THREE MONTHS OF CELLAR PRICES MOST OF THE STATE'S ROUGHLY 535 ACTIVE INDEPENDENT PRODUCERS REALLY ONLY HAVE 60 DAYS OF CASH RESERVES LEFT SAID VIRGINIA LAZENBY SPOKESWOMAN FOR THE NATIONAL STRIPPER WELLS ASSOCIATION A GROUP REPRESENTING THE INTERESTS OF THE SMALLEST OIL PRODUCERS ONCE THEY'VE CLOSED THESE WELLS THEY'VE LOST THEIR ABILITY TO REVIVE THEM AND COSTS JUST SNOWBALL AL OVERSTREET 62YEAROLD OWNER AND FOUNDER OF CAPITAL PRODUCTION CO BAKERSFIELD CALIF SAID HE HAS CLOSED FIVE OF EIGHT WELLS DURING THE PAST SIX MONTHS HIS COMPANY FACES BANKRUPTCY IN THE NEXT FEW MONTHS IF PRICES REMAIN FLAT HE ADDED A SURVEY OF INDEPENDENTS CONDUCTED BY THE CONSERVATION COMMITTEE OF CALIFORNIA OIL AND GAS PRODUCERS A GROUP AIMED AT PRESERVING THE STATE'S OILPRODUCTION CAPACITY FOUND THAT COMPANIES WERE LOSING MONEY ON ALMOST ONETHIRD OF BARRELS PUMPED IN CALIFORNIA AT CURRENT PRICES ON A DAILY CASHFLOW BASIS IF STARTUP COSTS EQUIPMENT LIABILITY AND DEBT LOAD ARE FACTORED IN ALMOST TWOTHIRDS OF THE STATE'S BARRELS ARE UNPROFITABLE THE STUDY FOUND STOCKDALE OIL & GAS INC A 14PERSON OPERATION HAS CLOSED HALF OF ITS 200 WELLS DURING THE PAST SIX MONTHS ACCORDING TO PHILIP RYALL STOCKDALE'S PRESIDENT THE CLOSURES HAVE CUT OUTPUT ALMOST ONETHIRD SINCE AUGUST TO 700 BARRELS A DAY FROM 1000 AT THIS POINT A COMPANY OUR SIZE MAY NOT STAY IN BUSINESS FOR LONG IN CALIFORNIA SAID MR RYALL ADDING BELIEVE ME WE'RE NERVOUS MR RYALL SAID THE COMPANY CAN PROBABLY SURVIVE LONGER THAN SOME OTHERS OF SIMILAR SIZE BECAUSE STOCKDALE HAS OTHER HOLDINGS ACROSS THE US AND IN OTHER COUNTRIES WHERE LOCAL CRUDES FETCH HIGHER PRICES ANALYSTS AGREE THAT THE FACE OF CALIFORNIA'S OIL INDUSTRY IS CHANGING UNDER THE ONSLAUGHT OF PRICE WEAKNESS BUT SOME SEE THE CURRENT TREND AS AN EVOLUTION TOWARD A MORE STREAMLINED RESILIENT INDUSTRY WITH STRONGER COMPANIES GOBBLING UP WEAKER ONES THE LOWPRICE ENVIRONMENT IS GOING TO PRODUCE SOME WINNERS AS WELL AS SOME LOSERS SAID SANDY KIRKPATRICK PRESIDENT OF KIRKPATRICK ENERGY ASSOCIATES INC A DENVER INVESTMENT FIRM THAT ANALYZES WEST COAST OIL COMPANIES MUCHDEBATED FEDERAL EFFORTS TO HELP SMALL ENERGY COMPANIES ARE ALL FOCUSED ON THE LONG TERM HOWEVER THE STATE OF CALIFORNIA RESPONDING TO THE PLEAS OF PRODUCERS AND TO ITS OWN CONCERN TO PROTECT ITS EMPLOYMENT BASE IS LOOKING FOR WAYS TO EASE THE REGULATORY BURDEN FOR INSTANCE THE STATE HAS THE STIFFEST ENVIRONMENTAL AND AIRQUALITY REGULATIONS IN THE NATION AT THE END OF THIS MONTH THE STATE WILL RELEASE A REPORT EXAMINING THE COST OF ENVIRONMENTAL REGULATIONS TO CALIFORNIA'S OIL INDUSTRY AND WHAT MEASURES COULD BE TAKEN TO REDUCE COSTS IN THE FACE OF CURRENT PRICE DECLINES BUT FOR THE SMALLEST COMPANIES GOVERNMENT HELP MAY BE A CASE OF TOO LITTLE TOO LATE I'VE WORKED SINCE I WAS NINE YEARS OLD IN THIS BUSINESS FROM THE ALASKA NORTH SLOPE TO THE MIDDLE EAST SAID CAPITAL PRODUCTION'S MR OVERSTREET FROM HIS NEW HEADQUARTERS INSIDE HIS HOME NOW I'M LOOKING AT GOING BANKRUPT AT THE TWILIGHT OF MY LIFE 9401070019 940107 T2 MEDICAL DISCLOSES SEC INVESTIGATION RELATING TO TWO EARNINGS RESTATEMENTS BY EMORY THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL ALPHARETTA GA T2 MEDICAL INC DISCLOSED THAT THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING EVENTS SURROUNDING THE COMPANY'S RESTATEMENT LAST SUMMER OF TWO QUARTERLY EARNINGS REPORTS THE COMPANY A PROVIDER OF INTRAVENOUS DRUG THERAPY IN THE HOME AND OTHER MEDICAL SERVICES SAID IT IS RESPONDING TO THE SEC'S REQUEST A SPOKESMAN DECLINED TO ELABORATE T2 MEDICAL ALSO DISCLOSED IN THE FILING THAT IT NO LONGER WOULD PURSUE THE CONTROVERSIAL PHYSICIANOWNERSHIP ARRANGEMENTS THAT HAVE DRIVEN ITS SUCCESS IN THE PAST THE SEC INQUIRY REPRESENTS THE LATEST REVERSAL IN T2 MEDICAL'S FORTUNES ONCE A DARLING OF WALL STREET THE COMPANY IN 1992 LEARNED THAT IT WAS ONE OF SEVERAL FIRMS UNDER INVESTIGATION BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR POSSIBLE MEDICARE FRAUD LAST SUMMER ACCOUNTING PROBLEMS AT THE COMPANY SPARKED A SLEW OF STILLUNRESOLVED SHAREHOLDER LAWSUITS IN AUGUST T2 MEDICAL PRONOUNCED TSQUARED RESTATED ITS EARNINGS SHARPLY DOWNWARD FOR THE FIRST AND SECOND QUARTERS OF ITS 1993 FISCAL YEAR AFTER THE COMPANY SAID IT DISCOVERED ACCOUNTING IRREGULARITIES AND ERRORS THE ORIGINAL DISCLOSURE OF THE ACCOUNTING PROBLEMS WAS ACCOMPANIED BY THE RESIGNATION OF T2 MEDICAL'S CHIEF EXECUTIVE OFFICER JOSEPH C ALLEGRA IN ADDITION THE COMPANY'S CHIEF FINANCIAL OFFICER DAVID HERSH TOOK ADMINISTRATIVE LEAVE WITH PAY AT THE TIME NEITHER THE COMPANY NOR THE EXECUTIVES WOULD SAY WHETHER THEIR DEPARTURES WERE LINKED TO THE ACCOUNTING DISCLOSURES THE EARNINGS RESTATEMENTS STEMMED LARGELY FROM INADEQUATE PROVISIONS FOR DOUBTFUL ACCOUNTS THE COMPANY SAID AT THE TIME DOUBTFUL ACCOUNTS ARE BILLINGS THAT NEITHER INSURERS NOR PATIENTS ARE LIKELY TO COVER MEANWHILE MOUNTING CRITICISM OF DOCTOROWNERSHIP ARRANGEMENTS BY THE PUBLIC AND IN WASHINGTON APPEARS TO HAVE FORCED T2 MEDICAL'S HAND IN RESTRUCTURING ITS CORPORATE DEALINGS THE COMPANY HISTORICALLY HAS GROWN BY MANAGING DOCTOROWNED HOMEHEALTH FIRMS AND LATER BUYING OUT THE DOCTORS' INTERESTS WITH COMPANY STOCK THROUGHOUT THESE RELATIONSHIPS T2 MEDICAL HAS BENEFITED FROM THE CONSTANT FLOW OF PATIENT REFERRALS BY THOSE DOCTORS INCREASINGLY THE PROPRIETY OF SUCH ARRANGEMENTS HAS BEEN CALLED INTO QUESTION BY MEDICAL ETHICISTS AND LEGISLATORS IN THE SEC FILING THE COMPANY SAID IT WOULD EITHER ACQUIRE OR REVISE THE MANAGEMENT AGREEMENTS WITH EXISTING FIRMS THAT ARE MANAGED BUT NOT YET OWNED BY T2 MEDICAL FURTHER THE COMPANY SAID IT IS BOLSTERING ITS SALES AND MARKETING STAFFS IN AN EFFORT TO ESTABLISH ACCOUNTS WITH HOSPITALS AND MANAGEDCARE ORGANIZATIONS T2 MEDICAL'S STRATEGIC SHIFT IS BEING APPLAUDED BY INDUSTRY ANALYSTS THOUGH THEY SUGGEST THAT THE COMPANY SHOULD HAVE MADE THE DECISION EARLIER THIS JUST MOVES THEM CLOSER TO WHERE THE INDUSTRY IS ALREADY SAID LORI PRICE SENIOR ANALYST WITH OPPENHEIMER & CO MS PRICE AND OTHERS ALSO WARN THAT THE COST OF CONVERTING TO A MORE TRADITIONAL SALES STRUCTURE WILL BE HIGH SO FAR ACCORDING TO THE FILING T2 MEDICAL HAS TAKEN SEVERAL MEASURES TO BOLSTER ITS SALES AND MARKETING CAPABILITIES THE COMPANY HAS RECRUITED A NUMBER OF HEALTHCARE EXECUTIVES REDEPLOYED MANY SENIOR EXECUTIVES AND BUILT A SMALL TRADITIONAL SALES STAFF THE DOCUMENT STATES IT'S NOT YET CLEAR HOW EFFECTIVE THESE MOVES WILL BE GIVEN THE TREMENDOUS COMPETITION IN HOME HEALTHCARE TODAY ACCORDING TO MICHAEL BOROCH A HEALTHCARE INDUSTRY CONSULTANT WITH LOUDEN & CO IN NASHVILLE TENN THEY'RE REALLY GOING TO BE CHALLENGED TO GO OUT AND SELL AGAINST EVERYBODY ELSE HE SAID PRICING CONTINUES TO COME DOWN AND THE MARKET ISN'T GROWING NEARLY AS IT HAD IN THE PAST 9401070018 940107 INTERNATIONAL TRW PLANS MEXICAN VENTURE TO START A CREDIT OPERATION IN GUADALAJARA BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY TRW INC WILL ANNOUNCE TODAY A MULTIMILLIONDOLLAR JOINT VENTURE WITH GRUPO CIS AN INVESTOR GROUP TO ESTABLISH A CONSUMER CREDIT REPORTING AGENCY IN MEXICO THE NEW COMPANY CALLED COMCRED IS EXPECTED TO START OPERATIONS IN GUADALAJARA IN 12 TO 18 MONTHS WITH 40 EMPLOYEES DV SKILLING GENERAL MANAGER OF TRW'S INFORMATION SYSTEMS AND SERVICES DECLINED TO DISCLOSE THE EXACT VALUE OF THE AGREEMENT SAYING ONLY THAT THE TRANSACTION WAS IN THE MULTITENS OF MILLIONS OF DOLLARS ACCESSIBLE COMPUTERIZED INFORMATION ON THE CREDIT HISTORY OF INDIVIDUALS HARDLY EXISTS IN MEXICO MANY BANKS STILL KEEP CREDIT RECORDS ON PAPER FURTHERMORE MEXICAN CONSUMERS DON'T HAVE LENGTHY CREDIT HISTORIES BECAUSE THEY PAID CASH FOR MOST OF THEIR PURCHASES DURING THE 1980S AND UNTIL AUGUST 1993 IT WAS ILLEGAL TO SHARE CREDIT INFORMATION OUTSIDE THE BANKING SYSTEM THIS IS A BRANDNEW BUSINESS PABLO GERBER S A PRINCIPAL IN GUADALAJARABASED GRUPO CIS SAID IN AN INTERVIEW IT IS DIFFICULT TO KNOW WHAT KIND OF INFORMATION IS OUT THERE BANKS HAVE AN URGENT NEED FOR CREDIT BUREAUS MEXICAN BANKS ISSUED THOUSANDS OF CREDIT CARDS IN THE PAST THREE YEARS BUT WERE LATER STUNG BY DEFAULTS MANY MEXICAN CONSUMERS INEXPERIENCED USERS OF CREDIT SIMPLY COULDN'T AFFORD THE HIGH FINANCING COSTS CREDIT CARDS WERE ONE OF THE KEY PROBLEM LOAN AREAS FOR BANKS IN 1992 AND IN 1993 SAID LAURA Z BERDEJA BANK ANALYST FOR BARING RESEARCH HERE AT LEAST 10 OF ALL CREDIT CARDS ISSUED WERE IN DEFAULT AT ONE POINT SHE SAID IN SOME INDIVIDUAL BANKS DEFAULT RATES WERE EVEN HIGHER THAN THAT BANKS HAVE SINCE WRITTEN DOWN MANY OF THESE LOANS SHARING CREDIT HISTORIES WITH A THIRD PARTY REPRESENTS A SIGNIFICANT CULTURAL CHANGE FOR MEXICAN BANKS WHICH TRADITIONALLY VIEWED SUCH DATA AS PROPRIETARY TRW SAYS IT NOW HAS INFORMAL COMMITMENTS FROM SEVERAL BANKS TO SHARE CREDIT INFORMATION TRW ALREADY FACES COMPETITION HERE HOWEVER LAST MONTH TRANS UNION CORP AND THE ASSOCIATION OF MEXICAN BANKS SIGNED A LETTER OF INTENT TO FORM A JOINT VENTURE TO PROVIDE ELECTRONIC CREDIT INFORMATION SERVICES BANKS AREN'T THE ONLY ISSUERS OF CREDIT CARDS HERE SEVERAL RETAIL CHAINS EXTEND CREDIT TO SHOPPERS AND A NUMBER OF NONBANK CREDIT CARD COMPANIES OPERATE IN MEXICO CURRENTLY BANKS CHARGE INTEREST RATES OF 30 TO 35 ON CREDIT CARDS HIGH RATES ARE ALSO CHARGED ON AUTO AND HOUSING LOANS BECAUSE MANY BANKS DON'T DISCRIMINATE BETWEEN GOOD CREDIT RISKS AND BAD ONES CREDIT BUREAUS COULD ACTUALLY HELP MEXICAN CONSUMERS BY DISTINGUISHING THOSE INDIVIDUALS WHO ARE GOOD CREDIT RISKS IN THE PAST THERE HAS BEEN NO CONCERN FOR BUILDING A CREDIT HISTORY AMONG CONSUMERS IN MEXICO MS BERDEJA SAID WITH THESE CREDIT BUREAUS YOU WILL BE ABLE TO DISTINGUISH YOURSELF AND MAYBE GET A LOWER INTEREST RATE 9401070017 940107 FOSTER'S BREWING REVAMPS IMAGE SEEKS TO REFRESH ITS SHARE IN CROWDED MARKET BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIA THE BEER THAT PUT AUSTRALIA ON THE WORLD BREWING MAP IS TRYING TO RECAPTURE ITS HOME MARKET BACK IN THE 1980S THE GOGO ENTREPRENEURS WHO RAN THE COMPANY NOW KNOWN AS FOSTER'S BREWING GROUP LTD SPENT MOST OF THAT DECADE BENT ON FOSTERIZING THE WORLD WITH THEIR LAGER BEER FOSTER'S NOW THOSE MEN ARE GONE AND THE COMPANY IS CHANGING ITS ACT ENTER LES HIDDINS OTHERWISE KNOWN AS THE STAR OF BUSH TUCKER MAN AN AUSTRALIAN TELEVISION SERIES THAT SHOWS SURVIVAL TECHNIQUES IN THE WILD IN A TELEVISION CAMPAIGN LAUNCHED LAST MONTH MR HIDDINS FEATURES AGAINST A STRIKING OUTBACK SETTING WITH A CAN OF FOSTER'S IN HAND THE COLOR OF THE CAN REMAINS ITS TRADEMARK BLUE THOUGH A SHADE OR TWO DARKER AND THE REVAMPED THEME IS IT DOESN'T GET ANY BETTER THAN THIS THE AIM IS TO CELEBRATE THE BRAND'S LOCAL HERITAGE FOSTER'S SAYS IN ITS PROMOTIONAL MATERIAL THE COMPANY NEGLECTS TO MENTION THAT FOSTER'S WAS FOUNDED IN MELBOURNE 107 YEARS AGO BY TWO BROTHERS NAMED FOSTER WHO HAILED FROM NEW YORK THE OLD FOSTER'S WAS A PRODUCT OF THE '80S IN A MARKETING SENSE AND WENT THE WAY OF THE '80S BECAUSE IT HAD A LOT OF ASSOCIATION WITH BUSINESS IN GENERAL AND HIGHFLYING SAYS ROBIN HUXLEY MARKETING DIRECTOR AT CARLTON & UNITED BREWERIES LTD A FOSTER'S UNIT THAT IMAGE IN PART HELPED DRIVE THE LAGER'S MARKET SHARE IN AUSTRALIA DOWN TO BETWEEN 7 AND 10 FROM AROUND 16 IN THE MIDTOLATE 1980S HE SAYS THE FOSTER'S STABLE OF BRANDS HOWEVER CONTROLS AN ESTIMATED 53 OF THE COUNTRY'S BEER MARKET WHICH TOTALS ABOUT 55 BILLION AUSTRALIAN DOLLARS US378 BILLION A YEAR IMPORTED BEERS ACCOUNT FOR ONLY ABOUT 1 OF TOTAL BEER SALES IN AUSTRALIA THE RELAUNCHING OF THE FOSTER'S BRAND IS PART OF A TREND IN AUSTRALIA OVER THE PAST TWO YEARS NEW BEERS OR REMAKES HAVE HIT THE SHELVES AT THE RATE OF ABOUT ONE A MONTH THOUGH SOME ARE DIRECTED ONLY AT SMALL REGIONAL MARKETS IT'S THE CLASSIC COMBINATION OF A FALLING MARKET AND TWO MAJOR COMPETITORS SAYS MR HUXLEY WHO NOTES THAT EACH POINT OF MARKET SHARE IN AUSTRALIA IS WORTH A55 MILLION THE CURRENT BLITZ OF BRANDS ISN'T PECULIAR TO AUSTRALIA BREWERS IN OTHER MATURE MARKETS INCLUDING THE US AND CANADA PURSUE A SIMILAR STRATEGY HE AND OTHERS SAY IN AUSTRALIA FOSTER'S AND ITS MAJOR COMPETITOR LION NATHAN LTD WHOSE TOP BRANDS INCLUDE TOOHEYS AND SWAN ARE CONSTANTLY TRYING TO GET THE ATTENTION OF THE CONSUMER SAYS JUSTIN ARTER WHO TRACKS THE BREWING INDUSTRY FOR STOCKBROKERAGE FIRM JB WERE & SON HE THINKS IT IS A TREND THAT IS HERE TO STAY THE RISK MR ARTER ADDS IS THAT IT'S CANNIBALIZING A SHRINKING MARKET PER CAPITA BEER CONSUMPTION HAS PLUNGED 21 TO 956 LITERS IN THE LATEST YEAR FROM 1216 LITERS A DECADE AGO GOVERNMENT FIGURES SHOW MEANWHILE OVER THE PAST FIVE YEARS SOCALLED LIGHT BEERS WITH LOWER ALCOHOL CONTENT HAVE GROWN TO ABOUT 25 OF CONSUMPTION FROM JUST 10 REFLECTING AMONG OTHER FACTORS TOUGHER DRUNKDRIVING REGULATIONS IN AUSTRALIA THE BRIGHT SPOT LATELY ON THE DOMESTIC BEER FRONT INDUSTRY ANALYSTS SAY IS THE INTRODUCTION OF SOCALLED ICE BEERS AND COLDFILTERED PRODUCTS BOTH OF WHICH UNDERGO SPECIAL LOWTEMPERATURE BREWING PROCESSES FOR INSTANCE DESPITE ITS RELATIVELY HIGH ALCOHOL CONTENT FOSTER'S MAINTAINS THAT ITS NEW CARLTON COLD FILTERED BITTER LAUNCHED LAST JUNE ALREADY HAS CAPTURED 45 OF THE NATIONAL MARKET FOR PACKAGED BEER SOME ANALYSTS ATTRIBUTE THE BREW'S SUCCESS TO A CLEAR BOTTLE THAT IS NOVEL FOR AUSTRALIA AND A TASTE THAT IS SWEETER THAN MOST BITTERS AND APPEALS TO THE 18 TO 25YEAROLD SET 9401070016 940107 MARKETING BY YUMIKO ONO AS JAPAN HUNKERS DOWN IN THE ECONOMIC DOLDRUMS FATHERS ARE MOVING INTO THE SPOTLIGHT ON THE SCREEN FATHERS ALWAYS HAVE BEEN REPRESENTED IN TELEVISION ADS BUT THEY TENDED TO PLAY A MINOR ROLE JUST AS JAPANESE FATHERS IN REAL LIFE BUSY AT WORK AND NEVER AT HOME BUT NOW THAT COMPANIES ARE REDUCING OVERTIME BUSINESSMEN ARE COMING HOME MANY HOURS EARLIER AND MORE COMMERCIALS ARE SHOWING FATHERS AS CENTRAL CHARACTERS COOKING CURRY AND WASHING DISHES NAKANO VINEGAR CO WHICH SELLS DRIED FISH FLAKES FOR RICE RECENTLY AIRED AN AD SHOWING A FATHER MOTHER AND CHILD MAKING RICE BALLS IN A PARK A BIG CHANGE FROM LAST YEAR'S AD OF A POPULAR TEENAGE CELEBRITY PLAYING VOLLEYBALL EVEN ROCK STARS ARE PUSHING A FATHERLY IMAGE FUJI PHOTO FILM CO JAPAN'S BIGGEST FILM MAKER RECENTLY SHOWED A POPULAR HEAVYMETAL SINGER HIS FACE PAINTED LIKE THE AMERICAN ROCK BAND KISS AND CLAD IN A BUSINESS SUIT RUNNING AFTER HIS DAUGHTER WITH HER LUNCHBOX AMONG THE 20 HIGHESTRATED ADS ARE SEVERAL COMMERCIALS PORTRAYING FATHER FIGURES SAYS TATSUO SEKINE PRESIDENT OF TOKYO KIKAKU CO A MARKETING RESEARCH COMPANY A FEW YEARS AGO HE SAYS THE TOP ADS WERE DOMINATED BY TEENAGE MODELS BUT THE TREND DOESN'T NECESSARILY MEAN JAPANESE MEN SUDDENLY ARE HELPING OUT WITH THE HOUSEWORK RATHER THE ADS ARE POPULAR BECAUSE FATHERS ARE A SYMBOL OF ENDURANCE SAYS TOKYO KIKAKU'S MR SEKINE AND AMID THE GLOOM OF THE ECONOMIC RECESSION HE SAYS PEOPLE WANT SOMEONE TO RELY ON IN JAPAN'S COMPETITIVE SOFT DRINK MARKET COCACOLA CO'S AMBITIOUS ATTEMPT TO SELL TAB CLEAR HAS FIZZLED LAST MARCH COKE ENTHUSIASTICALLY LAUNCHED ITS LOWCALORIE CLEAR COLA IN JAPAN FLOODING TELEVISION WITH ADS THAT SAID THE BEVERAGE WAS A COMPLETELY NEW IDEA WITH A TASTE THAT'S NOT WHAT YOU THINK AT FIRST CURIOUS TEENAGERS THE MAIN CONSUMERS OF SOFT DRINKS RUSHED TO SAMPLE THE DRINK WHICH COSTS 110 YEN FOR AN EIGHTOUNCE CAN COKE'S JAPANESE UNIT SAYS IT SOLD FOUR MILLION CASES THE FIRST TWO MONTHS A STRONG PERFORMANCE FOR A NEW BRAND BUT FEW PEOPLE CAME BACK FOR MORE AN OFFICIAL FROM COKE'S CONSUMER INFORMATION DEPARTMENT IN JAPAN SAID THE COMPANY DECIDED TO HALT SALES LAST SUMMER IT'S NOT UNCOMMON FOR NEW DRINKS TO QUICKLY VANISH IN JAPAN'S SOFT DRINK MARKET WHICH POSTS ANNUAL SALES OF 42 TRILLION YEN AND INCLUDES MORE THAN 1000 BRANDS IN FACT MANY COMPANIES TEST PRODUCTS BY ROLLING THEM OUT STRAIGHT TO CONSUMERS RECENT ENTRIES INCLUDE SUCH EXOTIC ITEMS AS YOGURT DRINKS INCLUDING CHUNKS OF FERMENTED COCONUT AND PUMPKIN AU LAIT BUT IT'S RARE FOR A DRINK THAT'S MARKETED SO HEAVILY TO BE WITHDRAWN SO SOON ANALYSTS SAY JAPANESE CONSUMERS WEREN'T READY FOR A DRINK LIKE TAB CLEAR FOR ONE THING ORIGINAL TAB HAD LITTLE BRAND RECOGNITION IN A COUNTRY THAT DOESN'T HAVE AS MUCH OF A TASTE FOR COLA AS AMERICA MOREOVER THE NOVELTY OF A CLEAR COLA DIDN'T EXCITE JAPANESE CONSUMERS WHAT'S MORE DIET DRINKS HAVE JUST STARTED TO GAIN ATTENTION AND MANY CONSUMERS WERE PUZZLED BY TAB CLEAR'S ARTIFICIALLY SWEET AFTERTASTE A POPULAR LOWCALORIE DRINK IS CANNED GREEN TEA WHICH ISN'T SWEET AT ALL PEOPLE WANT DRINKS THAT SOUND HEALTHY SAYS A SPOKESMAN FOR THE JAPAN SOFT DRINKS ASSOCIATION WHICH TRACKS BEVERAGE SALES FOR TAB CLEAR HE SAYS THE SWEETNESS MAY HAVE LINGERED A BIT JAPANESE DRIVERS ARE SPENDING A BUNDLE TO STAY ON THE RIGHT ROAD AT A TIME WHEN CONSUMER ELECTRONICS SALES ARE PLUNGING AMID THE RECESSION COMPANIES ARE CASHING IN BY PUSHING COMPUTERIZED SATELLITENAVIGATION SYSTEMS THE DEVICES ATTACHED NEXT TO THE DRIVER'S SEAT SHOW A CAR'S EXACT LOCATION AND GUIDE THE DRIVER TO A DESTINATION WITH AN ARROW ON A TINY TELEVISION SCREEN FIVE MONTHS AFTER ENTERING THE MARKET SONY CORP SAYS IT HAS SOLD NEARLY 40000 OF ITS NVXF10 MODEL DESPITE ITS HEFTY 210000 YEN 1861 PRICE IT'S ONE AREA IN THIS GLOOMY MARKET WHERE THERE'S ACTION GOING ON SAYS A SONY SPOKESMAN A HANDFUL OF RIVAL PRODUCTS HAS SPURRED A PRICE WAR BOOSTING SALES IN THE YEAR ENDED MARCH 31 CARNAVIGATION SYSTEMS SALES IN JAPAN MORE THAN QUADRUPLED FROM A YEAR EARLIER TO 150000 UNITS OBSERVERS ESTIMATE VOLUME TO AT LEAST DOUBLE IN THE NEXT YEAR IT'S A BIT OF A HASSLE TO SCROLL THE DEVICE'S MAPS WITH A REMOTECONTROL OPERATOR WHILE DRIVING BUT THE NAVIGATOR SOLVES A DILEMMA IN JAPAN'S FREQUENT TRAFFIC JAMS WHETHER TO SHOOT OFF ON SOME BACKALLEY SHORTCUT THE MACHINE TELLS WHETHER AND HOW THE DRIVER CAN GET BACK ON TRACK THE CDROM SOFTWARE COVERS ONLY JAPANESE ROADS SONY SAYS IT DOESN'T PLAN TO EXPORT THE DEVICE TO THE US WHERE OLDSMOBILE JUST UNVEILED A SELFNAVIGATING CAR THE DEVICES DETERMINE THE DRIVER'S WHEREABOUTS THROUGH MARITIME GLOBAL POSITIONING SYSTEM NETWORK OF SATELLITES USUALLY USED TO NAVIGATE SHIPS IN ADDITION SANYO ELECTRIC CO'S MACHINE RECOGNIZES VOICE SIGNALS AND PIONEER CORP OFFERS SOFTWARE FOR COMPUTER GAMES AND ENGLISH LANGUAGE LESSONS EYEING THE RISE IN INTEREST IN JAPAN FOR NATURE MAGAZINES NIKKEI BUSINESS PUBLICATIONS INC A TOKYOBASED PUBLISHER SAYS IT'S STUDYING THE POSSIBILITY OF PUBLISHING A JAPANESE VERSION OF NATIONAL GEOGRAPHIC SOCIETY'S MONTHLY MAGAZINE AS EARLY AS NEXT YEAR HOPING TO GAIN FROM JAPAN'S MINERALWATER BOOM SUNTORY LTD ADVERTISES ITS DYNAMIC BRAND BEER NOT FOR ITS TASTE BUT FOR USING NATURAL WATER THAT'S PUMPED FROM A WELL INSIDE ITS BREWING PLANT SUNTORY WHICH LAUNCHED THE BREW IN MARCH AIMS TO SELL 63300 KILOLITERS IN THE FIRST YEAR 9401070015 940107 PETRON CORP PLANS OFFERING OF 20 STAKE IN NEXT FEW MONTHS MANILA PHILIPPINES GOVERNMENTOWNED PETRON CORP WHICH PLANS A PUBLIC OFFERING OF 20 OF ITS EQUITY IN THE NEXT FEW MONTHS ANNOUNCED ITS NET INCOME SURGED BY 84 TO AROUND 27 BILLION PESOS 1 MILLION LAST YEAR PETRON PRESIDENT MONICO JACOB ATTRIBUTED THE SHARP RISE ON AN INCREASE IN REVENUE TO BETWEEN 44 BILLION PESOS TO 45 BILLION PESOS FROM 407 BILLION IN 1992 TO INCREASED VOLUMES INCREASED MARGINS AND BETTER EFFICIENCY HE COULDN'T GIVE FURTHER DETAILS PETRON THE PHILIPPINES' LARGEST OIL REFINING AND MARKETING COMPANY ALSO INCREASED ITS MARKET SHARE TO 44 FROM 40 IN 1992 THE 1993 FIGURES ARE UNAUDITED LAST MONTH IN THE COUNTRY'S LARGEST PRIVATIZATION SAUDI ARABIAN OIL CO SUBMITTED THE HIGHEST BID OF 502 MILLION FOR A 40 STAKE IN PETRON DETAILS OF THE SALE HAVE YET TO BE WORKED OUT BUT AT LEAST ONE OBSTACLE HAS BEEN OVERCOME MALAYSIA'S WESTMONT HOLDINGS SDN BHD WHICH WAS DISQUALIFIED FROM BIDDING FOR PETRON ON TECHNICAL GROUNDS HAS WITHDRAWN ITS PROTEST OVER THE CONDUCT OF THE EXERCISE WESTMONT GAVE NO REASON FOR ITS CHANGE OF HEART PETRON THE WHOLLY OWNED SUBSIDIARY OF THE STATE PHILIPPINE NATIONAL OIL CO HOPES TO GARNER PERHAPS EVEN MORE THAN THE SAUDI ARAMCO DEAL FROM A SECONDARY PUBLIC OFFERING OF A BILLION ONEPESO PARVALUE SHARES REPRESENTING 20 OF THE COMPANY IN DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PETRON SAID IT EXPECTED THE ISSUE TO TOTAL BETWEEN 6 BILLION PESOS AND 16 BILLION PESOS EVEN AT THE MINIMUM AMOUNT THE OFFERING WOULD BE BY FAR THE COUNTRY'S LARGEST STOCK OFFERING EVER 9401070014 940107 QUARTERLY MUTUAL FUNDS REVIEW EMERGING MARKETS' BOOM MAKES A TOP MANAGER QUEASY BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THE SCORCHINGHOT DOMAIN OF EMERGINGMARKET STOCK FUNDS ONE OF THE HOTTEST HANDS AROUND IS MORGAN STANLEY'S 32YEAROLD MADHAV DHAR THE SHARES OF MORGAN STANLEY EMERGING MARKETS A CLOSEDEND FUND MR DHAR MANAGES GAINED 925 IN 1993 IT'S BOOM TIME MR DHAR SAYS WITH AN EXPANSIVE SWEEP OF HIS ARMS INVESTORS ARE POURING MONEY INTO THE STOCK MARKETS OF FASTGROWING DEVELOPING NATIONS SUCH AS ARGENTINA MALAYSIA AND TURKEY PUSHING UP PRICES YET MR DHAR SAYS THE EUPHORIA IN EMERGING STOCK MARKETS SORT OF FRIGHTENS ME BECAUSE IT MAY PORTEND A SETBACK MR DHAR NEATLY FRAMES THE DILEMMA FACING INVESTORS WATCHING THE HOT RETURNS OF EMERGING MARKETS FUNDS SHOULD INVESTORS DIVE INTO THESE MARKETS WHILE THEY'RE MOVING UP OR WAIT TO INVEST AFTER A CORRECTION MR DHAR'S ADVICE PUT YOUR MONEY IN NOW IF YOU'RE INVESTING FOR THE LONG HAUL BUT REGULAR OPENEND FUNDS MIGHT MAKE MORE SENSE THAN PUBLICLY TRADED CLOSEDEND FUNDS SELLING AT HIGH PRICES AND IF YOU'RE INVESTING FOR THE SHORTTERM OR YOU CAN'T STAND TO SUFFER ANY LOSS STAY AWAY THERE MAY BE A ROUGH RIDE IN THE YEAR AHEAD MR DHAR SAYS I FEEL A LITTLE QUEASY AT INVESTORS' NEWFOUND ENTHUSIASM FOR EMERGING MARKETS HE SAYS GIVEN THE FROTHY PSYCHOLOGY OF THESE MARKETS HE SAYS A SCARE TO INVESTORS COULD TRIGGER A ROUT IN THE STOCKS MOREOVER INVESTORS GOING THE ROUTE OF CLOSEDEND FUNDS MUST TODAY PAY HEFTY PREMIUMS MEANING THEY PAY MUCH MORE THAN 1 FOR EVERY DOLLAR'S WORTH OF STOCK HELD IN THE FUND BECAUSE THE SHARES OF CLOSEDEND FUNDS TRADE ON EXCHANGES THEY FLUCTUATE ABOVE AND BELOW THE VALUE OF THE SECURITIES HELD IN THE FUNDS' PORTFOLIOS SHARES IN MR DHAR'S FUND FOR INSTANCE TRADE AT A SIZABLE PREMIUM OF ABOUT 17 OVER THE FUND'S NET ASSETS IF INVESTOR PSYCHOLOGY TURNS BEARISH INVESTORS COULD BE WHIPSAWED AS THE SHARES PLUNGE FROM A PREMIUM TO A DISCOUNT TO THE UNDERLYING PORTFOLIO BUT FOR THE PATIENT INVESTOR MR DHAR SAYS THAT PUTTING PART OF A PORTFOLIO INTO THESE MARKETS COULD TURBOCHARGE RETURNS OVER THE NEXT FIVE OR 10 YEARS DESPITE THEIR SWIFT RUNUP LAST YEAR THE FUNDAMENTALS ARE FINE IN EMERGING MARKETS HE SAYS THE STOCKS HELD IN MORGAN STANLEY EMERGING MARKETS' 400 MILLION PORTFOLIO SELL FOR 17 TIMES PROJECTED 1994 EARNINGS ABOUT IN LINE WITH THE US MARKET BUT MR DHAR EXPECTS EARNINGS AT THE COMPANIES TO GROW 15 TO 18 IN DOLLAR TERMS THAT'S FAR FASTER THAN THE 6 TO 8 GROWTH EXPECTED IN US CORPORATE EARNINGS IN TIME MR DHAR SAYS SWIFTLY RISING EARNINGS SHOULD BOOST EMERGINGMARKET STOCKS FASTER THAN SHARES IN DEVELOPED MARKETS SUCH AS THE US MR DHAR SAYS HE HAS 80 OF HIS PERSONAL FINANCIAL ASSETS INVESTED IN EMERGING MARKETS A FAR HIGHER PROPORTION THAN HE WOULD PROPOSE FOR MOST PEOPLE THAT 80 ALLOCATION MAY BE TOO HIGH FOR THE NEXT MONTH OR YEAR IF A CORRECTION HITS HE SAYS BUT IT'S CERTAINLY NOT TOO HIGH FOR THE NEXT FIVE YEARS A LOT OF FUND WATCHERS AGREE THESE THINGS HAVE RUN PRETTY HARD THE LAST FEW MONTHS SAYS SUSAN PALUCH AN ANALYST AT MORNINGSTAR CLOSEDEND FUNDS A NEWSLETTER IN CHICAGO WHO KNOWS HOW LONG THEY CAN SUSTAIN THAT BUT AS LONGTERM PLAYS THEY HAVE A LOT OF POTENTIAL MR DHAR ALONG WITH MARKET GURU BARTON BIGGS HEADS A MORGAN STANLEY GROUP THAT MANAGES 45 BILLION IN EMERGINGMARKETS ASSETS BESIDES THE EMERGING MARKETS CLOSEDEND FUND MORGAN STANLEY RUNS A HOST OF SINGLECOUNTRY AND REGIONAL CLOSEDEND FUNDS AND MANAGES MONEY FOR INSTITUTIONAL INVESTORS AS WELL MORGAN STANLEY RUNS AN OPENEND FUND AIMED AT INSTITUTIONS WITH A HIGH MINIMUM INVESTMENT OF 500000 THAT FUND HAD A TOTAL RETURN IN 1993 OF 8581 INCLUDING PRICE GAINS AND REINVESTED DIVIDENDS MR DHAR'S FUNDS HAVE A TEAM OF MANAGERS AND ANALYSTS WHO PICK STOCKS MR DHAR OVERSEES THE TEAM AND DECIDES WITH MR BIGGS WHO ALSO HEADS UP ALL OF MORGAN STANLEY ASSET MANAGEMENT HOW MUCH SHOULD GO INTO EACH COUNTRY THE BIGGEST COUNTRIES FOR THE FUNDS CLOSEDEND AND OPENEND NOW ARE BRAZIL 14 INDIA 12 AND HONG KONG AND CHINA 12 MR DHAR WHO TALKED HIS WAY INTO A JOB AT MORGAN STANLEY DURING A HIRING FREEZE WEAVES A COLORFUL CASE FOR EMERGINGMARKETS' PROSPECTS SURPRISINGLY HE SAYS DEVELOPING NATIONS ARE BOOMING THANKS TO THE COLLAPSE OF THE SOVIET UNION PREVIOUSLY DEVELOPING COUNTRIES DID NOT DEVELOP' BECAUSE THEY WERE SEDUCED AWAY FROM CAPITALISM BY ANOTHER MORE NOBLE' IDEOLOGY HE SAYS THE SOVIET UNION OFFERED A MODEL FOR ECONOMIC DEVELOPMENT WITHOUT BIG MACS BUT NOW DEVELOPING NATIONS ARE EMBRACING MARKET ECONOMIES EVEN THOUGH COMPETITION HURTS VERY BADLY UNTIL A SYSTEM STABILIZES WHAT STOCKS DOES HE LIKE HOUSING DEVELOPMENT FINANCE CORP IS A MONOPOLY MORTGAGE FINANCE COMPANY IN INDIA WHILE THE STOCK PRICE IS EXPENSIVE AT 20 TIMES EARNINGS IT'S BENEFITING FROM THE GROWTH OF THE INDIAN MIDDLE CLASS AT A 10 ANNUAL RATE AND A CHANGE IN CUSTOMS LEADING YOUNG INDIANS TO MOVE OUT OF THEIR FAMILIES' HOMES ENTERPRISES QUILMES IN ARGENTINA IS AN EXTREMELY WELLMANAGED BEER COMPANY MR DHAR SAYS WHILE PHILIP MORRIS AND OTHER US COMPANIES ARE TAKING SHARE AWAY FROM FOREIGN TOBACCO COMPANIES BEER TASTES ARE QUITE LOCAL IN BRAZIL THE STOCK OF ELECTROBRAS THE ELECTRIC MONOPOLY IS CHEAP IT'S HAD A 200 MOVE BUT IT STILL SELLS FOR ONLY 30 OF BOOK VALUE HE'S ALSO INVESTED IN BRADESCO A BRAZILIAN COMMERCIAL BANK EVEN THOUGH NO CREDIT IS AVAILABLE IN BRAZIL CURRENTLY IF INFLATION COMES DOWN THERE WILL BE A BOOM IN CREDIT IN BRAZIL INDOCEMENT IN INDONESIA IS A BIG POSITION BECAUSE THE DEVELOPMENT OF THE COUNTRY WILL REQUIRE HEAVY INFRASTRUCTURE SPENDING BUT IT'S HARDER TO FIND AFFORDABLE INFRASTRUCTURE PLAYS AROUND THE WORLD THAN PREVIOUSLY MR DHAR SAYS BECAUSE THERE ARE SO MANY INVESTORS CHASING THEM MR DHAR LIKES PEC ISRAEL ECONOMIC CORP WHICH IS A QUASICLOSEDEND FUND THAT BUYS TROUBLED COMPANIES FIXES THEM UP AND TAKES THEM PUBLIC IT HAS ONE OF THE SMARTEST MANAGEMENTS WE'VE SEEN EASTERN EUROPE WE OWN A LOT OF RUSSIAN DEBT WHICH HAS BEEN FABULOUS MR DHAR SAYS AFRICA THE FUND HAS AMONG OTHER THINGS A STAKE IN A CLOSELY HELD CHICKENRANCHING FIRM IN ZIMBABWE CALLED TRANSZAMBEZE YOU CAN'T BUY STOCKS OFF THE COMPUTER SCREEN IN EMERGING MARKETS MR DHAR SAYS WE LIKE COMPANIES THAT ARE HARD TO ANALYZE MR DHAR GOT INTO MORGAN STANLEY DURING A HIRING FREEZE BY OFFERING TO WORK WITHOUT PAY FOR SIX MONTHS SAYS MR BIGGS HE REALLY JUST SORT OF TALKED HIS WAY FROM BUSINESS SCHOOL INTO GETTING A JOB MR BIGGS SAYS THE GUY SAID I REALLY WANT TO DO THIS YOU DON'T HAVE TO PAY ME' IT WAS CLEAR AFTER HE'D BEEN HERE FOR A WHILE THAT HE WAS A REAL DYNAMO MR DHAR'S INTEREST IN EMERGING MARKETS GOES BEYOND A PROFESSIONAL ONE HE WAS BORN IN DELHI INDIA TO A PRIVILEGED FAMILY HIS FATHER A PROFESSOR WAS AN ADVISER TO INDIAN LEADER INDIRA GANDHI MR DHAR STUDIED ASTROPHYSICS AT ST STEPHENS COLLEGE DELHI UNIVERSITY INDIA BUT DISAPPOINTED HIS FATHER AN ARDENT SOCIALIST BY GOING TO CARNEGIE MELLON IN PITTSBURGH TO GET AN MBA TEN YEARS AGO HE WAS CRUSHED THAT I WAS GOING TO MORGAN STANLEY MR DHAR SAYS I SOLD MY SOUL BUT WHILE HIS OWN BACKGROUND WAS AFFLUENT I GREW UP AROUND EXTREME POVERTY YOU NEVER FORGET THAT THAT'S WHY HE SAYS HE TAKES SUCH PLEASURE IN WATCHING THE BOOM IN DEVELOPING COUNTRIES YOU'RE SEEING POOR PEOPLE GET RICH IN FRONT OF YOU HE SAYS I CAN'T GET VERY EXCITED DECIDING WHETHER TO BUY GM OR CHRYSLER 9401070013 940107 MARKETING & MEDIA JUDGE THROWS OUT BULK OF MGM SUIT AGAINST KERKORIAN BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES A STATE COURT JUDGE HERE ISSUED A PRELIMINARY ORDER THROWING OUT THE BULK OF THE CLAIMS IN A LAWSUIT FILED IN 1992 BY METROGOLDWYNMAYER INC AGAINST THE STUDIO'S FORMER OWNER KIRK KERKORIAN AND OTHERS BUT A SIMILAR SUIT FILED BY MGM'S OWNER FRENCH BANK CREDIT LYONNAIS SA WASN'T DIRECTLY AFFECTED NEITHER WERE CLAIMS AGAINST THE LOS ANGELES ACCOUNTING FIRM HOULIHAN LOKEY HOWARD & ZUKIN WHICH ALSO HAD BEEN A DEFENDANT THE SUIT WHICH SOUGHT 750 MILLION IN DAMAGES HAD CHARGED THAT MR KERKORIAN HIS TRACINDA CORP AND TWO ASSOCIATES BREACHED FIDUCIARY DUTY BY NOT DISCLOSING THE STUDIO'S TRUE FINANCIAL PROBLEMS WHEN THEY SOLD IT TO ITALIAN FINANCIER GIANCARLO PARRETTI IN 1990 FOR 13 BILLION THE BANK FOLLOWED UP QUICKLY WITH ITS OWN LAWSUIT CHARGING FRAUD TRACINDA COUNTERSUED CREDIT LYONNAIS HAD LOANED MR PARRETTI MUCH OF THE MONEY FOR THE 1990 ACQUISITION HOULIHAN LOKEY ISSUED A SOLVENCY OPINION AT THE TIME OF THE SALE BUT MR PARRETTI ENCOUNTERED CASH FLOW PROBLEMS ALMOST IMMEDIATELY AND AFTER A YEAR THE BANK OUSTED HIM THEN FOUGHT HIM IN COURT FOR NEARLY ANOTHER YEAR TO GET THE OUSTER APPROVED THE BANK WOUND UP TAKING POSSESSION OF THE STUDIO IN A DEFAULT ITS EXPOSURE WELL OVER 1 BILLION TRACINDA'S ATTORNEY IN THE MGM MATTER SETH HUFSTEDLER SAID WE'RE OBVIOUSLY PLEASED WITH THE JUDGE'S RULING BUT WOULDN'T COMMENT FURTHER UNTIL THE ORDER WAS FINALIZED A CREDIT LYONNAIS SPOKESMAN CALLED THE ORDER BY LOS ANGELES SUPERIOR COURT JUDGE RICHARD C HUBBELL UNCLEAR AND ADDED WE ARE SEEKING CLARIFICATION FROM JUDGE HUBBELL OF HIS BRIEF ORDER BUT ONE THING THAT IS CLEAR IS THAT THE BANK'S CASE AGAINST THE TRACINDA DEFENDANTS SURVIVES IN FULL AND MGM'S CASE AGAINST HOULIHAN LOKEY SURVIVES THE BANK AND MGM WILL VIGOROUSLY PROSECUTE THESE CLAIMS JUDGE HUBBELL GAVE NO REASONS FOR HIS ORDER WHICH WAS A REVERSAL OF AN EARLIER RULING BY A RETIRED JUDGE ACTING AS A COURT REFEREE ONE ARGUMENT USED BY TRACINDA WAS THAT BECAUSE CREDIT LYONNAIS ACTUALLY ACQUIRED THE STUDIO ALMOST TWO YEARS AFTER IT SAYS IT WAS MISLED IT KNEW FULL WELL BY THAT TIME THE EXTENT OF THE PROBLEMS THE STUDIO ARGUED THAT THE BANK DIDN'T HAVE MUCH CHOICE IN ACQUIRING MGM BECAUSE OF ITS LOAN EXPOSURE AND THAT THE SALE WAS MORE OR LESS A FORECLOSURE PEOPLE CLOSE TO BOTH SIDES WEREN'T CERTAIN WHETHER THE BANK'S LAWSUIT WOULD BE AFFECTED BUT JUDGE HUBBELL IS PRESIDING OVER THAT LAWSUIT AS WELL 9401070012 940107 NOT TONIGHT DEER OR HOW TO LIMIT WHITETAIL POPULATION RESTRAINING HUNGERING HERDS STIRS HUMAN PASSION TALK OF BAMBI BIRTH CONTROL BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL IRONDEQUOIT NY IF IT WEREN'T FOR THE BATTLE OVER DEER CONTRACEPTIVES ARNOLD ECKERT AND SANDY BAKER MIGHT BE MORE CIVIL TO EACH OTHER DEER CONTRACEPTIVES WAIT IT GETS WEIRDER MR ECKERT CALLS MS BAKER AND HER SUPPORTERS LOONEY TUNES BECAUSE THEY WANT TO USE BIRTH CONTROL TO LIMIT THE BURGEONING DEER POPULATION HERE THESE DEER HUGGERS HE SAYS ARE A HATEFUL BUNCH WHO PLANTED A FAKE PIPE BOMB UNDER HIS CAR I'VE NEVER SEEN SUCH VINDICTIVE VICIOUS PEOPLE IN MY LIFE SPUTTERS MR ECKERT WHO HEADS AN EFFORT TO CULL THE NUMBER OF DEER BY LURING THEM TO ISOLATED SPOTS WITH FOOD AND SHOOTING THEM MS BAKER A MEMBER OF THE MONROE COUNTY ALLIANCE FOR WILDLIFE PROTECTION IS A PETITE WOMAN WHO SEEMS TO SHRINK BEHIND THE WHEEL OF HER GRAY CADILLAC SHE DENIES HAVING ANYTHING TO DO WITH THE PHONY BOMB INDEED SHE WONDERS IF MR ECKERT STAGED THE WHOLE THING TO DEFLECT ATTENTION FROM THE DEER SLAUGHTER I'M NO ANIMALRIGHTS FANATIC I'M NOT EVEN A VEGETARIAN SHE SAYS I JUST THINK WE SHOULD LOOK AT ALTERNATIVES BEFORE WE START KILLING THE DEER WARS HAVE DIVIDED THE STREETS AND CULDESACS OF THIS ROCHESTER SUBURB HOME TO 60000 PEOPLE AND A HOTLY DISPUTED NUMBER OF DEER THOSE WHO HATE THEM SAY THERE MUST BE 500 OR MORE DEER ROAMING AROUND PRODEER FORCES SAY THERE IS NO SCIENTIFIC BASIS TO ESTIMATE THE NUMBER BUT MAINTAIN THAT WHATEVER THE ANTIDEER FORCES CALCULATE IT'S INFLATED MANY SUBURBAN COMMUNITIES ARE STRUGGLING TO CONTEND WITH WHITETAILED DEER WHICH MUNCH ON SHRUBBERY AND GARDEN PLANTS LIKE GRAZERS AT A SALAD BAR WHILE THEIR SHARP HOOVES LACERATE THE LAWNS WORSE THE GRACEFUL ANIMALS HAVE FEW NATURAL PREDATORS IN THE SUBURBS BESIDES DODGE MINIVANS AND BUICK SKYLARKS AND AS THE NUMBER OF DEER IN POPULATED AREAS INCREASES SO DO RELATED ROAD ACCIDENTS HITTING A DEER OR GETTING HIT BY ONE CAN KILL THE ANIMAL AND MANGLE THE CAR SWERVING WILDLY TO AVOID COLLISION CAN BE JUST AS DANGEROUS ALSO NO ONE WANTS TO SEE WHITETAILED CARCASSES ALONG THE HIGHWAY ESPECIALLY IN THE SUMMER SUN THE SITUATION HAS TURNED PARTICULARLY NASTY IN IRONDEQUOIT WHERE MANY OF THE PRICIEST HOMES ARE BUILT ALONG THE FRINGES OF DURAND EASTMAN PARK 961 LUSH ACRES THAT INCLUDE AN 18HOLE GOLF COURSE AND MOST OF THE TOWN'S DEER THOMAS GRISWOLD AN 81YEAROLD RETIRED ENGINEER LIVES ON A WINDING LANE NEXT TO THE PARK AND POINTS TO SKELETAL REMAINS OF SHRUBS LEFT BY WHITETAILS WHO AMBLE OVER FOR A SNACK THIS IS NO WAY TO LIVE HE FUMES WHAT MOST GALLS DEER LOVERS IN IRONDEQUOIT IS OFFICIALS' REFUSAL TO CONSIDER SUCH HUMANE ALTERNATIVES TO KILLING AS BIRTH CONTROL BIZARRE AS IT SOUNDS RESEARCHERS SAY THEY ARE WITHIN A FEW YEARS OF DISTRIBUTING A CHEAP AND EFFECTIVE CONTRACEPTIVE VACCINE FOR DEER THAT COULD BE USED IN CERTAIN CONTROLLED SETTINGS SUCH AS IRONDEQUOIT'S PARK SUCH CONTRACEPTIVE INJECTIONS ALREADY HAVE BEEN SUCCESSFULLY TESTED ON WILD HORSES AND 27 SPECIES OF ZOO ANIMALS INCLUDING AFRICAN LIONS AND RIVER HIPPOS IRONDEQUOIT TURNED DOWN AN OFFER TO PARTICIPATE IN A TEST OF THESE BIRTHCONTROL INJECTIONS WHICH ARE ADMINISTERED BY DART GUNS INSTEAD THE TOWN AND COUNTY DECIDED LAST FALL TO LAUNCH A BAITANDSHOOT PROGRAM OVER A SERIES OF NIGHTS OFFDUTY POLICEMEN LURED ABOUT 80 DEER TO ISOLATED SPOTS WITH HEAPS OF CORN FLIPPED ON LIGHTS AND BLASTED AWAY HUNDREDS OF ROUNDS OF GUNSHOTS ECHOED THROUGH THIS TOWN'S NORMALLY QUIET LEAFY STREETS AND CAUSED AN UPROAR ANGRY RESIDENTS MARCHED IN FRONT OF TOWN HALL AND OPPONENTS OF THE SHOOTING STARTED TYING PURPLE RIBBONS TO LAMPPOSTS AND MAILBOXES SOME PARENTS COMPLAINED THE NOISE KEPT CHILDREN AWAKE WHILE DEER ADVOCATES TRIED TO SNEAK PAST POLICE BARRICADES TO DISRUPT THE PROGRAM ANOTHER 160 DEER ARE SLATED TO BE KILLED THIS WINTER ALTHOUGH OFFICIALS NOW SAY THEY HAVE BOUGHT SUPPRESSORS TO MUFFLE THE GUNSHOTS IT WAS DURING THIS CULLING PROGRAM THAT MR ECKERT WHO IS PRESIDENT OF THE MONROE COUNTY LEGISLATURE STARTED OUT ONE MORNING ON HIS DAILY WALK AND FOUND THE FAKE PIPE BOMB LYING IN HIS DRIVEWAY HIS CAR HAD BEEN VANDALIZED WITH SWASTIKAS SCRATCHED ON THE TRUNK AND THE WORDS DEER KILLER ETCHED ON A DOOR THESE ARE THE SAME FOLKS WHO CAN'T BEAR TO SEE AN ANIMAL DIE HE SAYS MR ECKERT ADDS THAT HE TALKED TO JAY KIRKPATRICK ONE OF THE WILDLIFECONTRACEPTIVE EXPERTS ABOUT THE VACCINE LAST YEAR BUT DECIDED IT WAS UNPROVEN IF YOU'RE GOING TO USE A HIGHPOWERED RIFLE TO DART DEER WHY NOT JUST PUT A BULLET IN THEIR HEADS HE ASKS MR KIRKPATRICK DIRECTOR OF CONSERVATION BIOLOGY FOR ZOOMONTANA A REGIONAL ZOO IN BILLINGS MONT CONCEDES THE VACCINE STILL HAS SOME DRAWBACKS CURRENTLY ANIMALS MUST BE DOSED TWICE IN ONE MONTH TO BE INFERTILE FOR A YEAR THE TECHNOLOGY IS DESIGNED FOR SMALL URBAN POPULATIONS HE SAYS WHERE ANIMALS ARE EASILY MONITORED AND LESS FRIGHTENED OF PEOPLE HE IS NOW WORKING ON A ONESHOT TREATMENT WHICH SHOULD BE READY IN A FEW YEARS ONCE WE HAVE THAT HE SAYS WE WILL BE READY TO DISTRIBUTE IT WIDELY DRIVING IRONDEQUOIT'S WINDING STREETS IT'S EASY TO SEE WHO IS ON WHICH SIDE OPPONENTS OF THE BAITANDSHOOT PROGRAM HAVE HUNG OUT PURPLE RIBBONS WHILE THOSE WHO HATE THE DEER TEND TO HAVE THE BESTKEPT YARDS OFTEN FENCED THAT GUY OVER THERE ACTUALLY USES A VACUUM CLEANER IN HIS YARD SAYS MURIEL ARNOLD WHO HAS TWO PURPLE RIBBONS DISPLAYED AND DEER CARVED ON HER MAILBOX MS ARNOLD SAYS ONCEFRIENDLY NEIGHBORS BEGAN SNUBBING HER WHEN THEY LEARNED SHE LIKES DEER ONE MAN SHOWED UP AT HER DOOR WITH A BAG OF DEER DROPPINGS IN HIS HAND DEMANDING SHE STOP TOSSING APPLES IN HER YARD FOR THE ANIMALS HE SHOOK THIS STUFF IN MY FACE AND SAID IT WAS MY FAULT IT WAS IN HIS LAWN SHE RECALLS SHE'S ONE OF THESE BAMBI LOVERS ALL RIGHT SAYS DONALD BURNESS THE NEIGHBOR HE ADMITS CARRYING OVER THE BAG OF DROPPINGS BUT SAYS HE WAS ONLY TRYING TO DRIVE HOME HIS POINT IT MUST HAVE WEIGHED 10 POUNDS HE SAYS MS BAKER WHO LIVES ON THE OTHER SIDE OF THE PARK SAYS SHE HAS GOTTEN PHONE CALLS FROM PEOPLE WHO MUTTERED SHE SHOULD BE SHOT ALONG WITH THE ANIMALS ANOTHER DEER FAN WAS CONFRONTED THREE TIMES BY AN IRATE ANTIDEER MOM WHO IS SO SPOOKED AT THE NUMBER OF DEER ON THE ROAD SHE THREATENED TO COME AFTER THE DEERLOVER'S SON AND DAUGHTER IF HER OWN CHILDREN EVER ARE HURT IN A DEERCAR COLLISION LARAMIE BROWN A SEVENTHGRADE SCIENCE TEACHER WHO HEADS THE IRONDEQUOIT DEER ACTION COMMITTEE THAT ADVOCATES THE CULLING PROGRAM SAYS IT'S NOT THE DEERBUT THE DEER LOVERS WHO IRRITATE HER MOST SHE SAYS SHE ONCE WAS INTENTIONALLY TRIPPED BY AN OPPONENT AT A PUBLIC HEARING AND A FAKE BOMB TURNED UP IN HER MAILBOX JUST DAYS AFTER MR ECKERT FOUND HIS DEER ARE OUR ABORTION ISSUE SHE SAYS IT BRINGS OUT THE EXTREMISTS 9401070011 940107 WHO'S NEWS CYTEC INDUSTRIES TAPS FRY TO HEAD COMPANY WEST PATERSON NJ CYTEC INDUSTRIES INC A RECENT SPINOFF OF AMERICAN CYANAMID CO ANNOUNCED SEVERAL KEY EXECUTIVE APPOINTMENTS THE CHEMICAL MANUFACTURER NAMED DARRYL D FRY 54 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER MR FRY WAS FORMERLY AN EXECUTIVE VICE PRESIDENT OF CYANAMID AND PRESIDENT OF THE COMPANY'S CHEMICAL GROUP IN A MOVE TO TRANSFORM ITSELF FURTHER INTO A MEDICAL AND AGRICULTURAL PRODUCTS COMPANY CYANAMID ANNOUNCED ITS INTENTIONS TO SPINOFF ITS CYTEC UNIT EARLY LAST YEAR IN ADDITION JAMES P CRONIN 40 WAS ALSO NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR CRONIN WAS PREVIOUSLY CONTROLLER AT CYANAMID'S CHEMICAL GROUP CYTEC ALSO NAMED TWO FORMER VICE PRESIDENTS OF CYANAMID'S CHEMICAL GROUP EXECUTIVE VICE PRESIDENTS STEPHEN M CRUM 42 AND CHARLES A RUIBAL 46 9401070010 940107 TECHNOLOGY ZEOS INTERNATIONAL SIGNS LETTER OF INTENT TO BUY COMPUADD MINNEAPOLIS ZEOS INTERNATIONAL LTD FURTHERING THE CONSOLIDATION IN THE PERSONALCOMPUTER INDUSTRY SAID IT SIGNED A LETTER OF INTENT TO BUY COMPUADD CORP A COMPETITOR IN THE MAILORDER COMPUTER BUSINESS ZEOS IN A STATEMENT DIDN'T DISCLOSE THE PURCHASE PRICE ALTHOUGH IT SAID IT PLANNED TO PAY FOR COMPUADD WITH A COMBINATION OF CASH AND STOCK RICHARD W KRAUSE COMPUADD'S PRESIDENT DECLINED TO DISCLOSE FURTHER DETAILS NOTING THAT THE DEAL HAS NOT YET BEEN COMPLETED HE SAID IT WAS TOO EARLY TO TELL WHETHER THE COMPUADD NAME WOULD SURVIVE OR WHETHER HE WOULD HAVE A ROLE IN THE COMBINED COMPANY IN NOVEMBER ZEOS DISCLOSED THAT IT HAD BEGUN VERY PRELIMINARY MERGER TALKS WITH COMPUADD WHICH EMERGED FROM BANKRUPTCYCOURT PROTECTION TWO MONTHS AGO CLOSELY HELD COMPUADD FILED FOR CHAPTER 11 PROTECTION AFTER STUMBLING IN ITS ATTEMPTS TO EXPAND INTO PC RETAILING THE COMPANY HAS SAID IT EXPECTS REVENUE THIS YEAR OF ABOUT 250 MILLION ZEOS HAD SALES OF 169 MILLION FOR THE FIRST NINE MONTHS OF 1993 AND A NET LOSS OF 9 MILLION OR 105 A SHARE IN THE YEAREARLIER NINE MONTHS ZEOS REPORTED A LOSS OF 21 MILLION OR 245 A SHARE ON REVENUE OF 1592 MILLION NEWS OF THE DEAL CAME AFTER THE CLOSE OF THE STOCK MARKET YESTERDAY ZEOS WAS QUOTED AT 3375 UP 125 CENTS IN NASDAQ STOCK MARKET TRADING ZEOS CHAIRMAN GREGORY E HERRICK SAID IN A STATEMENT THAT HE WAS ATTRACTED TO COMPUADD BY ITS WINNING GROUP OF EMPLOYEES AND A LOYAL CUSTOMER BASE THE COMPANY SAID THE TRANSACTION IS SUBJECT TO A DEFINITIVE AGREEMENT REGULATORY APPROVAL AND THE CONSENT OF COMPUADD'S LENDERS 9401070009 940107 WHO'S NEWS MGM NAMES COHEN TO POST SANTA MONICA CALIF METROGOLDWYNMAYER INC SAID IT NAMED RICHARD COHEN PRESIDENT OF THE STUDIO'S HOME VIDEO AND NEW MEDIA ELECTRONIC PUBLISHING UNIT MGM/UA HOME ENTERTAINMENT MR COHEN 43 YEARS OLD IS BEST KNOWN IN HOLLYWOOD FOR SERVING AS EXECUTIVE VICE PRESIDENT OF WALT DISNEY CO'S HOME VIDEO UNIT LATE IN 1992 HE DEPARTED TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF INTERNATIONAL CABLECASTING TECHNOLOGIES INC BASED IN LONDON MGM IS OWNED BY FRENCH BANK CREDIT LYONNAIS SA 9401070008 940107 BLOCKBUSTER AND VIACOM DISCUSS MERGER MOVE COULD ALLOW PARTNERS TO OUTBID RIVAL QVC IN FIGHT FOR PARAMOUNT BY WALL STREET JOURNAL REPORTERS RANDALL SMITH JOHNNIE L ROBERTS AND LAURA LANDRO NEW YORK VIACOM INC AND BLOCKBUSTER ENTERTAINMENT CORP ARE NEGOTIATING A MERGER AIMED AT ENABLING VIACOM TO OUTBID RIVAL QVC NETWORK INC IN THE BATTLE FOR PARAMOUNT COMMUNICATIONS INC ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION VIACOM AND BLOCKBUSTER WERE SCRAMBLING TO PUT THE FINISHING TOUCHES ON A DEAL VALUING BLOCKBUSTER AT ABOUT 7 BILLION THAT COULD BE ANNOUNCED TODAY AS AN INTERIM STEP TO THE MERGER PLAN THESE PEOPLE SAID BLOCKBUSTER MIGHT INCREASE AN EARLIER 600 MILLION INVESTMENT IN VIACOM BY AS MUCH AS 1 BILLION VIACOM COULD USE THE CASH TO SWEETEN ITS PARAMOUNT BID CURRENTLY VALUED AT 93 BILLION TONIGHT IS THE DEADLINE FOR VIACOM TO TOP QVC'S OFFER CURRENTLY VALUED AT 98 BILLION IF VIACOM DOESN'T MAKE A NEW BID BY THE END OF TODAY QVC CHAIRMAN BARRY DILLER COULD WIN THE FOURMONTH CONTEST PROVIDED THAT HOLDERS OF 51 OF PARAMOUNT SHARES TENDER THEIR STOCK TO QVC THE CABLETV HOMESHOPPING CHANNEL BUT A VIACOMBLOCKBUSTER MERGER ALONG WITH A HIGHER VIACOM BID COULD PROLONG THE CONTEST FOR WEEKS THE BOARDS OF VIACOM AND BLOCKBUSTER WERE MEETING LATE YESTERDAY TO DISCUSS THE MERGER PLAN BUT THE PEOPLE FAMILIAR WITH THE PLAN CAUTIONED THAT AN AGREEMENT WASN'T GUARANTEED AND THAT IMPORTANT POINTS REMAINED UNRESOLVED FOR EXAMPLE ONE PERSON SAID THAT THE MERGER AGREEMENT MIGHT BE CONTINGENT ON VIACOM'S WINNING THE BIDDING CONTEST ANOTHER REMOTE POSSIBILITY WAS THAT THE TWO COMPANIES WOULD FORM A JOINT VENTURE POOLING SOME OF THEIR ASSETS IF THEY COULDN'T REACH A MERGER ACCORD BUT THE BROAD OUTLINES OF A MERGER HAD BEEN WORKED OUT THE PEOPLE SAID IN THE MERGER BEING DISCUSSED VIACOM WHICH OWNS MTV NICKELODEON SHOWTIME AND OTHER CABLETV CHANNELS WOULD ISSUE STOCK TO ACQUIRE BLOCKBUSTER A FASTGROWING CHAIN OF VIDEO RENTAL STORES A VIACOMBLOCKBUSTER MERGER WOULD TAKE LONGER TO COMPLETE THAN THE PARAMOUNT BIDDING TIMETABLE ALLOWS BUT BLOCKBUSTER'S POSSIBLE 1 BILLION ADDITIONAL INVESTMENT WOULD ENABLE VIACOM TO MOVE MORE SWIFTLY TO IMPROVE ITS OFFER FOR PARAMOUNT IF THE TWO COMPANIES CAN'T REACH AGREEMENT IN TIME THEY MIGHT SIMPLY DISCLOSE TODAY THAT THEY ARE HOLDING MERGER TALKS AND APPEAL TO PARAMOUNT SHAREHOLDERS FOR MORE TIME TO MAKE A NEW BID WHICH COULD DEPRIVE QVC OF THE NEEDED 51 TRADERS SAID THAT BLOCKBUSTER AND VIACOM TOGETHER WOULD HAVE A STRONGER BALANCE SHEET AND MORE BORROWING POWER TO SWEETEN VIACOM'S OFFER THE COMBINATION WOULD ALSO EXPAND BLOCKBUSTER'S ROLE FROM SIMPLY AN INVESTOR IN VIACOM TO A MAJOR SHAREHOLDER AND PARTNER IN ANY ACQUISITION OF PARAMOUNT THE PEOPLE SAID A HIGHER OFFER FROM THE VIACOM CAMP COULD ALSO HEIGHTEN THE DRAMA IN THE BATTLE FOR PARAMOUNT BY FORCING QVC TO SWEETEN ITS OFFER FOR A THIRD TIME EXACT TERMS OF THE PROPOSED VIACOMBLOCKBUSTER MERGER COULDN'T BE LEARNED VIACOM CHAIRMAN SUMNER REDSTONE WHO HAS AN 84 VOTING STAKE AND 76 ECONOMIC STAKE IN VIACOM IS EXPECTED TO REMAIN IN CONTROL THOUGH HIS OVERALL STAKE WOULD LIKELY BE DIMINISHED BUT BLOCKBUSTER CHAIRMAN WAYNE HUIZENGA WHO CONTROLS A 92 STAKE IN THE FORT LAUDERDALE FLA COMPANY WOULD BECOME A POWER IN THE MERGED COMPANY AS WELL IT WASN'T CLEAR HOW THE MERGER WOULD ADDRESS ISSUES OF MANAGEMENT CONTROL AND SUCCESSION IF VIACOM SUCCEEDS IN MAKING A HIGHER BID IT WOULD FORCE QVC'S MR DILLER TO CONFRONT SIMILAR ISSUES OF HOW MUCH POWER HE WANTS TO GIVE UP TO OBTAIN INCREASED FINANCING FROM BELLSOUTH CORP THE REGIONAL TELEPHONE COMPANY THAT IS BACKING HIS BID IT COULD ALSO ADD AT LEAST ANOTHER TWO WEEKS TO THE CONTEST WHICH BEGAN WHEN VIACOM AND PARAMOUNT ANNOUNCED A FRIENDLY 82 BILLION ACQUISITION AGREEMENT ON SEPT 12 THAT'S BECAUSE EACH NEW BID MUST REMAIN OPEN FOR 10 ADDITIONAL BUSINESS DAYS A VIACOMBLOCKBUSTER MERGER WOULD BE THE LATEST IN A DIZZYING SUCCESSION OF ALLIANCES AMONG COMPANIES ACROSS THE MEDIA SPECTRUM ALL VYING FOR A STAKE IN PARAMOUNT THE ENTERTAINMENT AND PUBLISHING GIANT UNDER THE BIDDING RULES AGREED TO BY VIACOM AND QVC TWO WEEKS AGO IF 51 OF PARAMOUNT'S SHARES ARE TENDERED TO QVC TODAY UNDER ITS CURRENT BID OF 8170 A SHARE AND IF VIACOM DOESN'T RAISE ITS BID QVC WOULD WIN AND VIACOM WOULD HAVE TO BOW OUT SHAREHOLDERS WHO HADN'T TENDERED THEIR SHARES TO QVC WOULD THEN HAVE 10 DAYS TO DO SO BLOCKBUSTER AGREED IN SEPTEMBER TO INVEST 600 MILLION IN VIACOM TO BOLSTER ITS BID TO BUY PARAMOUNT WHILE NYNEX CORP INVESTED 12 BILLION IN VIACOM FACED WITH THE NEED TO COME UP WITH MORE CASH TO TOP QVC'S BID VIACOM WENT BACK TO BOTH INVESTORS LATE LAST MONTH REGIONAL TELEPHONE GIANT NYNEX FACED PRESSURES FROM CONSUMER GROUPS AND REGULATORS HOWEVER AND VIACOM'S TALKS WITH BLOCKBUSTER TOOK PRECEDENCE PEOPLE CLOSE TO THE SITUATION SAID TOP EXECUTIVES OF BLOCKBUSTER MET OVER SEVERAL DAYS THIS WEEK WITH VIACOM INITIALLY DISCUSSING A PLAN FOR BLOCKBUSTER TO INVEST MORE CASH TO BOOST VIACOM'S OFFER FOR PARAMOUNT PEOPLE FAMILIAR WITH THE SITUATION SAID THAT EARLY TALKS WITH VIACOM AND BLOCKBUSTER WERE FRAUGHT WITH DIFFICULTY OVER ISSUES OF VALUE AND CONTROL UNDER THE ORIGINAL AGREEMENT TO INVEST 600 MILLION IN VIACOM BLOCKBUSTER DIDN'T GET VOTING STOCK IN VIACOM BUT COLLECTED A BOARD SEAT AND PREFERRED STOCK WITH A 5 DIVIDEND THE STOCK IS CONVERTIBLE TO VIACOM NONVOTING CLASS B SHARES AT 70 A SHARE IN RECENT TALKS BLOCKBUSTER WAS SAID TO BE DEMANDING MORE FAVORABLE TERMS FROM VIACOM IN RETURN FOR A FURTHER CASH INVESTMENT THE DISCUSSION THEN TURNED TO A COMBINATION OF SOME OR ALL OF VIACOM'S AND BLOCKBUSTER'S BUSINESSES ONE PERSON FAMILIAR WITH BLOCKBUSTER SAID THAT BLOCKBUSTER'S MR HUIZENGA HAD PRESSED FOR A COMBINATION OUT OF GROWING CONCERN FOR THE FUTURE OF BLOCKBUSTER'S OWN BUSINESS BLOCKBUSTER THE NATION'S LARGEST VIDEO CHAIN FACES INCREASING COMPETITION FROM CABLETV PAYPERVIEW CHANNELS AND THE PROMISE OF MOVIES ON DEMAND FROM PHONE AND CABLETV COMPANIES FOR THAT REASON BLOCKBUSTER HAS ALREADY INVESTED IN SMALLER ENTERTAINMENT PRODUCTION CONCERNS SUCH AS SPELLING ENTERTAINMENT DURING THE DAY TRADERS HEARD RUMORS THAT VIACOM'S NEXT MOVE MIGHT BE BIGGER THAN YOU THINK BUT WITHOUT ANY SPECIFICS ONLY AFTER THE STOCK MARKET CLOSED AT 4 PM DID THE RUMORS ABOUT A POSSIBLE MERGER TAKE OFF THOUGH THE VIACOM CAMP HAS BEEN MUM ON ITS PLANS ALL WEEK TRADERS AND ENTERTAINMENT INDUSTRY EXECUTIVES SAY PEOPLE IN THE VIACOM CAMP HAVE BEEN BROADLY HINTING AT A DRAMATIC MOVE TO BE ANNOUNCED TODAY BLOCKBUSTER HAS ABOUT 2221 MILLION SHARES OUTSTANDING VALUED AT ABOUT 66 BILLION AT YESTERDAY'S CLOSING PRICE OF 29875 A SHARE ACCORDING TO THE VALUE LINE INVESTMENT SURVEY BLOCKBUSTER HAS TOTAL DEBT OF 4953 MILLION AND EXPECTED 1993 REVENUES OF ABOUT 21 BILLION IN 1992 IT REPORTED PROFITS OF 142 MILLION OR 76 CENTS A SHARE ON REVENUE OF 12 BILLION BLOCKBUSTER LATE LAST MONTH TRIPLED ITS CREDIT AGREEMENT WITH A GROUP OF BANKS TO 1 BILLION THE SHARE PRICE OF THE FASTGROWING COMPANY HAS RISEN ABOUT 30FOLD SINCE 1988 BASED ON THE RAPID EXPANSION OF ITS CORE BUSINESS OF VIDEO RENTAL STORES WHICH NOW NUMBER MORE THAN 3000 THE STOCK SHOWS LITTLE SIGN OF WEAKENING DESPITE THE THREATS TO ITS BUSINESS POSED BY NEW TECHNOLOGIES BLOCKBUSTER HAS A MUCH STRONGER BALANCE SHEET THAN VIACOM WHOSE STOCKMARKET VALUE IS 54 BILLION BUT WHICH HAS 25 BILLION IN DEBT NOT INCLUDING THE ADDITIONAL 37 BILLION IN DEBT IT WILL ASSUME TO FINANCE ITS CURRENT OFFER FOR PARAMOUNT 9401070007 940107 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED DEC 31 ACCOUNTED FOR 103 OR AN AVERAGE 207 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL SEVEN MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 28 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 302 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 551 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS WHILE 396 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 53 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES AND GOLDMAN SACHS EXECUTED MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY BEAR STEARNS AND KIDDER PEABODY DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9401070006 940107 INTERNATIONAL NATO SEEKS TO EXTEND UMBRELLA WITHOUT FUELING RUSSIAN FEARS USBROKERED COMPROMISE FALLS SHORT OF COVERAGE EASTERN EUROPE WANTS BY PETER GUMBEL AND MARK M NELSON STAFF REPORTERS OF THE WALL STREET JOURNAL BRUSSELS AT A SUMMIT MEETING HERE NEXT WEEK THE NORTH ATLANTIC TREATY ORGANIZATION WILL PROVIDE ITS FIRST ANSWERS TO A STRATEGIC CONUNDRUM HOW TO ENSURE STABILITY IN EUROPE AT A TIME WHEN RUSSIA THE BIGGEST MILITARY POWER IN THE REGION IS BECOMING INCREASINGLY UNSTABLE THAT QUESTION ALREADY ONE OF THE MOST VEXING ISSUES OF THE POSTCOMMUNIST ERA HAS BEEN MADE MORE URGENT BY THE SUCCESS OF MILITANT NATIONALISTS IN RUSSIA'S RECENT PARLIAMENTARY ELECTIONS BUT NATO'S EXPECTED RESPONSE A USINITIATED PLAN KNOWN AS PARTNERSHIPS FOR PEACE IS UPSETTING EAST EUROPEAN NATIONS WHO FEEL LET DOWN BY THE WEST JUST AS THE THREAT FROM THEIR HUGE EASTERN NEIGHBOR SEEMS TO BE ON THE RISE THE INITIATIVE ALSO IS CREATING MISGIVINGS IN WESTERN EUROPE PARTICULARLY IN GERMANY AND FRANCE WHICH ARE NONETHELESS PUBLICLY SUPPORTING IT THE PLAN SAYS AN AIDE TO FRENCH PRESIDENT FRANCOIS MITTERRAND IS A HALFMEASURE IMPOSED BY THE CIRCUMSTANCES THAT DOESN'T COMPLETELY SATISFY ANYONE ONE MAIN CAUSE FOR COMPLAINT IS THAT THE PROPOSAL RISKS CREATING THE IMPRESSION THAT RUSSIA FROM A POSITION OF WEAKNESS NOW IS DICTATING NATO POLICY IT AMOUNTS TO A SUPREME TWIST OF IRONY FOR AN ALLIANCE FOUNDED FOUR DECADES AGO TO PREVENT RUSSIA FROM IMPOSING ITS WILL FROM A POSITION OF MILITARY STRENGTH THIS APPEARANCE IS OF PARTICULAR CONCERN IN EUROPE WHERE GOVERNMENTS ALREADY ARE FACING A TEST OF THEIR CREDIBILITY OVER THEIR LACK OF DECISIVE ACTION TO RESOLVE THE CONFLICT IN BOSNIA US OFFICIALS HOWEVER INSIST THAT THE PROPOSAL IS A REALISTIC INTERIM STEP THAT ULTIMATELY SHOULD SATISFY ALL SIDES THE INITIAL REACTION TO PARTNERSHIPS FOR PEACE MAY BE MIXED BEYOND THAT HOWEVER THE POPULARITY WILL JUMP TREMENDOUSLY AS COUNTRIES LEARN THAT IT WORKS FOR THEM ROBERT HUNTER THE US AMBASSADOR TO NATO SAID IN AN INTERVIEW THE INITIATIVE WHILE CONFIRMING WASHINGTON'S PREOCCUPATION WITH RUSSIA TRIES TO BRIDGE THE SEEMINGLY IRRECONCILABLE POSITIONS OF MOSCOW AND ITS EAST EUROPEAN NEIGHBORS IT WOULD OPEN THE WESTERN ALLIANCE TO MILITARY COOPERATION WITH THE EAST TO AVOID PROVOKING MOSCOW HOWEVER NATO WOULD NOT GRANT SPECIFIC SECURITY GUARANTEES OR EXTEND ITS MEMBERSHIP TO EASTERN NATIONS ANY TIME SOON THAT COMES AS A DISAPPOINTMENT TO EAST EUROPEAN NATIONS WHICH HAVE SEEN MEMBERSHIP IN NATO AS THEIR BEST HOPE FOR ENSURING MILITARY STABILITY FOLLOWING THE COLLAPSE OF SOVIET COMMUNISM UNTIL RECENTLY THE WEST DID LITTLE TO DISCOURAGE THEIR HOPES BUT RUSSIAN PRESIDENT BORIS YELTSIN HAS TAKEN AN INCREASINGLY TOUGH STANCE ON THE ISSUE WARNING THAT AN ENLARGEMENT OF NATO WOULD BE VIEWED AS A HOSTILE MOVE MOSCOW'S TOUGH TALK IS STIRRING CONCERN AND IRRITATION KARL LAMERS THE FOREIGNPOLICY SPOKESMAN OF GERMANY'S RULING CHRISTIAN DEMOCRATIC PARTY YESTERDAY ISSUED A STRONG REBUKE ABOUT THE THREATENING UNDERTONE OF RECENT RUSSIAN STATEMENTS WHICH HE DESCRIBED AS TANTAMOUNT TO LATENT IMPERIALISM HE SAID THE MANNER IN WHICH RUSSIA WAS SEEKING TO PUT PRESSURE ON NATO GIVES PAUSE FOR THOUGHT MOREOVER BOTH LECH WALESA THE POLISH PRESIDENT AND VACLAV HAVEL THE CZECH LEADER HAVE EXPRESSED PUBLIC IRRITATION ABOUT WHAT THEY SEE AS BEING LEFT IN LIMBO MR WALESA HAS CONDEMNED THE WEST'S HESITATION TO ALLOW EASTERN EUROPE TO JOIN NATO AS IRRESPONSIBLE AND SHORTSIGHTED WHILE MR HAVEL HAS COMPARED IT TO THE YALTA TREATY SIGNED AT THE END OF WORLD WAR II THAT PAVED THE WAY FOR SOVIET DOMINATION OF EASTERN EUROPE BEHIND THE RHETORIC ON ALL SIDES HOWEVER THERE IS SOME UNDERSTANDING OF THE TRICKY POSITION NATO FINDS ITSELF IN THE STUNNING SUCCESS OF VLADIMIR ZHIRINOVSKY A FIREBRAND RUSSIAN NATIONALIST IN RUSSIA'S ELECTIONS HAS MADE THE WEST EVEN MORE WARY ABOUT ALIENATING RUSSIA IN WARSAW JERZY MILEWSKI HEAD OF POLAND'S NATIONAL SECURITY ADMINISTRATION AND FIRST DEPUTY DEFENSE MINISTER SAYS HE REALIZES THAT IMMEDIATE NATO MEMBERSHIP ISN'T POSSIBLE BUT HE ADDS WE NEED TO KNOW THAT THE EXISTENCE OF THE NATION IS NOT THREATENED PARTNERSHIPS FOR PEACE DOESN'T PROVIDE A SUFFICIENTLY STRONG SIGNAL HE ARGUES TO PUT FLESH ON ITS BONES HE WANTS NATO TO PROVIDE CLEARER CRITERIA AND A TIMETABLE FOR EVENTUAL MEMBERSHIP IN THE MEANTIME HE SAYS POLAND WILL ASK FOR PERMISSION TO STATION A MILITARY EMISSARY IN MONS BELGIUM THE LOCATION OF SUPREME HEADQUARTERS OF ALLIED POWERS IN EUROPE AND FOR NATO TO SEND AN AMBASSADOR TO WARSAW HE ALSO WANTS NATO TO PROVIDE AIR SURVEILLANCE COVERING POLISH TERRITORY HELP IN DEVELOPING A CLEAR PLAN FOR INTEGRATION OF POLISH FORCES INTO NATOCOMPATIBLE EQUIPMENT AND COMMUNICATIONS AND ACCESS TO NATO MILITARY SCHOOLS MR HUNTER THE US NATO AMBASSADOR SAYS POLAND AND ITS NEIGHBORS WILL GET MANY OF THE THINGS THEY ARE ASKING FOR AND LONGER TERM HE ADDS THERE WILL BE NEW MEMBERS OF NATO IN THE FUTURE SOME WEST EUROPEAN NATIONS PARTICULARLY FRANCE AND GERMANY ARE EAGER TO FIND WAYS TO INTEGRATE EASTERN EUROPE MORE RAPIDLY THEY SEE THE WEST EUROPEAN UNION THE EMBRYONIC MILITARY WING OF THE 12NATION EUROPEAN UNION AS THE EUROPEAN COMMUNITY NOW IS CALLED AS PLAYING A GROWING ROLE IN EUROPEAN DEFENSE AND THEY ARE OFFERING SPECIAL ASSOCIATE STATUS IN THAT BODY TO POLAND PRESIDENT CLINTON IS EXPECTED TO SIGNAL AT THE SUMMIT THAT THE US IS PREPARED TO SUPPORT FULL DEVELOPMENT OF THE WEU SHIFTING AWAY FROM WASHINGTON'S TRADITIONAL WARINESS TOWARD THAT ORGANIZATION BUT THE WEU IS STILL YOUNG AND MOST EAST EUROPEAN OFFICIALS ARE SKEPTICAL THAT IT WILL BECOME AS RELIABLE A GUARANTOR OF THEIR SECURITY AS NATO WOULD BE 9401070005 940107 ECONOMY ADMINISTRATION TO SKIP DETAILS IN PHONE LAWS ESTABLISHING SPECIFIC RULES ON WIDER COMPETITION IS LEFT TO REGULATORS BY DANIEL PEARL AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CLINTON ADMINISTRATION OFFICIALS WHILE DRAFTING PROPOSED LAWS TO GOVERN TELECOMMUNICATIONS COMPETITION ARE PLANNING TO LEAVE MANY OF THE THORNY DETAILS TO OTHERS THE OFFICIALS SAID THE FEDERAL COMMUNICATIONS COMMISSION AND OTHER REGULATORS WOULD PLAY A BIG ROLE IN DETERMINING THE GROUND RULES FOR COMPETITION AMONG TELEPHONE CABLETELEVISION AND LONGDISTANCE COMPANIES ONE OFFICIAL SAID THEIR ROLE WOULD INCLUDE DECIDING WHAT SAFEGUARDS ARE NEEDED TO KEEP SINGLE COMPANIES FROM DOMINATING MARKETS AND DETERMINING WHEN THE GOVERNMENT SHOULD DRAFT REGULATIONS THAT APPLY TO PARTICULAR SERVICES SUCH AS TWOWAY VIDEO INSTEAD OF THE TECHNOLOGY THAT DELIVERS IT SUCH AS CABLE OR TELEPHONE MANY OF THE JUDGMENTS CAN BE DEALT WITH BETTER IN THE REGULATORY PROCESS RATHER THAN IN LEGISLATION COMMERCE SECRETARY RON BROWN TOLD REPORTERS HERE HE CITED RAPIDLY CHANGING TECHNOLOGY AND THE LAW OF UNINTENDED CONSEQUENCES AS REASONS CRITICS OF THE 1992 CABLE REGULATION LAW WHICH SET SPECIFIC PRICE BENCHMARKS FOR BASIC CABLE SERVICE SAY IT HAD THE UNINTENDED EFFECT OF SPURRING CABLE OPERATORS TO RAISE RATES FOR OTHER SERVICES STILL THE ADMINISTRATION HASN'T YET DETERMINED HOW MUCH TO SPELL OUT RULES ABOUT ISSUES SUCH AS CROSSSUBSIDIES AND HOW MUCH TO LEAVE THE ISSUES TO THE FCC AND STATE UTILITY COMMISSIONS DIFFERENT PEOPLE HAVE DIFFERENT IDEAS OF WHAT CONSTITUTES THE RIGHT LEVEL OF DETAIL ONE ADMINISTRATION OFFICIAL SAID DAYS BEFORE VICE PRESIDENT AL GORE IS SCHEDULED TO DESCRIBE THE ADMINISTRATION'S PLANS IN A LOS ANGELES SPEECH OFFICIALS INDICATE THAT MR GORE WILL USE THE SAME BROAD BRUSH THE WHITE HOUSE HAS USED FOR THE PAST SEVERAL MONTHS TO DESCRIBE ITS VISION FOR SPURRING INVESTMENT IN FIBEROPTIC NETWORKS THAT WILL CONVEY VOICE VIDEO AND INFORMATION THE SPEECH WILL LAY OUT THE BASIC PRINCIPLES OF THE ADMINISTRATION'S LEGISLATION MR BROWN SAID MEMBERS OF CONGRESS AND LOBBYISTS HAD BEEN EXPECTING SPECIFIC DETAILS NEXT WEEK BUT MR BROWN TOLD BUSINESS LEADERS THAT THE ADMINISTRATION HADN'T YET ANSWERED SEVERAL BASIC QUESTIONS ABOUT FUTURE GROUND RULES FOR TELECOMMUNICATIONS COMPETITION INCLUDING WHETHER EACH HOME SHOULD BE SERVED BY TWO LINES AND HOW TO ENSURE THAT EVERY HOME CAN AFFORD THE NEW INTERACTIVE SERVICES WHITE HOUSE AIDES MAINTAINED THAT SOME IMPORTANT ISSUES WILL BE LEFT TO THE FCC BECAUSE IT IS MORE FLEXIBLE AND WILL BE BETTER ABLE TO DEAL WITH ISSUES THAT CROP UP FIVE YEARS FROM NOW FOR INSTANCE IT IS UNLIKELY THAT MR GORE WILL ANSWER QUESTIONS INVOLVING HOW TO PROVIDE SUBSIDIES TO GUARANTEE UNIVERSAL SERVICE THAT ISSUE IS TOO COMPLEX TO RESOLVE TODAY WHEN NO ONE EVEN KNOWS HOW UNIVERSAL SERVICE WILL BE DEFINED IN FIVE OR 10 YEARS THE FCC HASN'T EXACTLY BEEN KNOWN FOR LIGHTNING SPEED IN REACTING TO CHANGE BUT FCC CHAIRMAN REED HUNDT IS A CLOSE FRIEND OF MR GORE A LEADER OF THE CLINTON ADMINISTRATION'S TELECOMMUNICATIONS PUSH IT'S FAIR TO SAY THE PRESIDENT VICE PRESIDENT AND SECRETARY HAVE A GREAT DEAL OF RESPECT FOR AND CONFIDENCE IN THE ABILITY OF REED HUNDT AND THE TEAM HE'S PUTTING TOGETHER SAID LARRY IRVING ASSISTANT COMMERCE SECRETARY ANOTHER REASON ADMINISTRATION OFFICIALS WISH TO AVOID SPECIFICS IN THEIR LEGISLATION IS TO AVERT BATTLES WITH CONGRESS WHICH WILL CONSIDER IN ADDITION TO THE ADMINISTRATION'S LEGISLATION AS MANY AS FOUR OTHER BILLS RELAXING BARRIERS TO COMPETITION IN TELECOMMUNICATIONS WITH A GENERAL BILL WE CAN SAY WHERE WE'RE HEADED WITHOUT PAINTING OURSELVES INTO A CORNER WHERE WE CAN'T WORK WITH HILL MEMBERS AN ADMINISTRATION OFFICIAL SAID INDEED AN AIDE TO REP JOHN DINGELL D MICH CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE SAID ADMINISTRATION OFFICIALS HAVE TOLD MR DINGELL IN RECENT DAYS THEIR LEGISLATION WON'T CONFLICT WITH A COMPROMISE BILL MR DINGELL INTRODUCED WITH REP JACK BROOKS D TEXAS CHAIRMAN OF THE HOUSE JUDICIARY COMMITTEE THAT BILL WOULD ALLOW REGIONAL TELEPHONE COMPANIES TO PROVIDE LONGDISTANCE SERVICES ADMINISTRATION OFFICIALS WILL CONTINUE SOLICITING ADVICE FROM BUSINESSES EVEN AFTER THE WHITE HOUSE FILES ITS LEGISLATION YESTERDAY MR BROWN ANNOUNCED A 27MEMBER ADVISORY COUNCIL TO HELP DEVELOP THE ADMINISTRATION'S TELECOMMUNICATIONS POLICIES AND BRING US THE WISDOM OF MANY PERSPECTIVES BUT INDUSTRY OFFICIALS NOTED THAT SOME PERSPECTIVES ARE MUCH MORE APPARENT ON THE PANEL THAN OTHERS FOR EXAMPLE TWO LONGDISTANCE COMPANIES HAVE REPRESENTATIVES ON THE ADVISORY COUNCIL BUT LOCAL AND REGIONAL PHONE COMPANIES DON'T NOR DO ANY TELEVISION NETWORKS OR STUDIOS THOUGH THE COUNCIL DOES INCLUDE OFFICIALS OF TWO CABLE PROGRAMMERS JOHN COOKE OF THE DISNEY CHANNEL AND ROBERT JOHNSON OF BLACK ENTERTAINMENT TELEVISION THE PANEL WILL BE HEADED BY EDWARD MCCRACKEN CHIEF EXECUTIVE OF SILICON GRAPHICS INC A MOUNTAIN VIEW CALIF MAKER OF COMPUTER WORKSTATIONS AND DELANO LEWIS PRESIDENT OF NATIONAL PUBLIC RADIO OTHER MEMBERS INCLUDE NATHAN MYHRVOLD OF MICROSOFT CORP ALEX MANDL OF AMERICAN TELEPHONE & TELEGRAPH CO BERT ROBERTS OF MCI COMMUNICATIONS CORP STANLEY HUBBARD OF HUBBARD BROADCASTING MITCH KAPOR OF THE ELECTRONIC FRONTIER FOUNDATION AND BONNIE BRACEY A VIRGINIA ELEMENTARY SCHOOL TEACHER MR BROWN INSISTED THAT THE COUNCIL IS A DIVERSE GROUP AND SAID IT WON'T BE THE ONLY AVENUE FOR BUSINESSES TO INFLUENCE ADMINISTRATION POLICY A SPOKESWOMAN ALSO SAID THE ADMINISTRATION MAY ADD A BABY BELL REPRESENTATIVE THOUGH THE BELL COMPANIES ARE REPRESENTED THROUGH THEIR RESEARCH ARM BELLCORE 9401070002 940107 LEISURE & ARTS ON SPORTS BASKETBALL IS BEAUTIFUL BY FREDERICK C KLEIN WOODSTOCK NY CHARLEY ROSEN SAYS IT'S NOT TRUE THAT HE'S A LUNATIC WELL NOT ALL THE TIME ANYWAY I'M A PURIST AN HONEST MAN AND I HATE TO SEE A BEAUTIFUL THING DEFILED HE SAYS THERE HAVE BEEN TIMES WHEN MY SENSE OF INJUSTICE HAS GOTTEN THE BETTER OF ME THE BEAUTIFUL THING OF WHICH ROSEN SPEAKS IS BASKETBALL HE HAS COACHED IT FOR A GOOD MANY YEARS AND WHILE HIS PRESENT POST IS A MODEST ONE HE DIRECTS THE WOMEN'S TEAM AT THE STATE UNIVERSITY OF NEW YORK AT NEW PALTZ HIS PERSPECTIVE REMAINS UNIQUE FOR NINE YEARS HE WAS AN ASSISTANT OR HEAD COACH IN THE CONTINENTAL BASKETBALL ASSOCIATION THE SPORT'S MINORLEAGUE NETHERWORLD AND WITH SEVEN BOOKS ON BASKETBALL TO HIS CREDIT SIX OF THEM NOVELS HE'S THE GAME'S FOREMOST LITERARY CHRONICLER AT HIS EASE THE 6FOOT8 52YEAROLD IS A PLEASANT AND REFLECTIVE PERSON A SELFDESCRIBED OVERAGE HIPPIE WHOSE IDENTIFICATION WITH THE 1970S COUNTERCULTURE LED HIM TO ESTABLISH HIS HOME IN THIS UPSTATE NEW YORK COMMUNITY THAT IS ITS SPIRITUAL CAPITAL ONCE BALL MEETS FLOOR HOWEVER THAT TRANQUILITY HAS OFTTIMES PROVED FRAGILE ROSEN ONCE SPENT A DISMAL HOUR OR SO IN A CEDAR RAPIDS IOWA JAIL FOR TAKING A SWING AT AN OPPOSING COACH AFTER A GAME IN THAT CITY BUT MOST OF THE DISTURBERS OF HIS PEACE HAVE BEEN REFEREES HE RACKED UP 1700 IN FINES FOR TECHNICAL FOULS DURING ONE CBA SEASON AT 25 A CLIP THAT COMES OUT TO QUITE A FEW HE DISPUTES PUBLISHED REPORTS THAT FUMING OVER A CALL HE CONSIDERED UNJUST HE ATTEMPTED TO THROW HIS 50THBIRTHDAY CAKE AT A REFEREE DURING A HALFTIME CEREMONY HONORING HIM IN OKLAHOMA CITY WHEN HE COACHED THERE I WAS HOLDING A BALLOON IN ONE HAND AND THIS VERY BIG CAKE IN THE OTHER AND THE CAKE SLIPPED HE CLAIMS BUT HE ADDS AS I WAS LOSING CONTROL OF IT I DID THINK OF TRYING TO FLIP IT IN HIS THE REF'S DIRECTION AS ROSEN SEES IT THE PROBLEM WITH MANY YEA MOST REFEREES IS SIMPLE THEY DON'T UNDERSTAND THE GAME HE DESCRIBES AS BALLET WITH DEFENSE BASKETBALL AT ITS BEST HE SAYS IS NOT FIVE PLAYERS AGAINST FIVE OTHERS INSTEAD ALL 10 PLAY THE SAME GAME THIS CONDITION DOES NOT OBTAIN AUTOMATICALLY IT MUST BE DEVELOPED BY SKILLED ATHLETES FOLLOWING THE SPORT'S PRINCIPLES AND THEIR OWN INSTINCTS BUT ONCE IT DOES THERE'S A FLOW TO IT THAT HAS A LIFE OF ITS OWN THE PLAYERS DON'T KNOW IF THEY'RE WINNING OR LOSING OR VERY MUCH CARE IT TRANSCENDS THAT SORT OF CONCERN BUT JUST WHEN THE ACTION IS GETTING GROOVY SOME DUMB REF'LL BLOW HIS WHISTLE AND BRING EVERYONE BACK TO EARTH JUST ABOUT ALL REFEREES THINK THEY HAVE TO GRAB THE GAME AND BEND IT HE SAYS MOST HAVE NEVER REALLY PLAYED BASKETBALL SO THEY HAVE NO FEEL FOR IT THEY'RE LIKE BLIND MEN TALKING ABOUT ART BUT THERE THEY ARE IN TOTAL CONTROL CAN YOU BLAME ME FOR FREAKING OUT THE REAL WONDER IS WHY ANYONE WITH SENSE KEEPS COMING BACK FOR MORE BUT COME BACK ROSEN DID AGAIN AND AGAIN BIG AND STRONG AS A YOUTH AND ANYTHING BUT BALLETIC HE PLAYED COLLEGE BALL AT HUNTER COLLEGE IN HIS NATIVE NEW YORK HARDLY THE GAME'S BIG TIME REASON TOLD HIM HIS FUTURE LAY ELSEWHERE BUT HE STILL CONTINUED TO DELIVER HOOK SHOTS AND ELBOWS IN GOTHAM'S PLAYGROUNDS HE TAUGHT ENGLISH IN HIGH SCHOOL AND COLLEGE HIS FIRST PUBLISHED NOVEL HAVE JUMP SHOT WILL TRAVEL WAS NOMINATED FOR A NATIONAL BOOK AWARD HE GOT THIS FAR FROM RECEIVING A PHD IN MEDIEVAL STUDIES FROM ST JOHN'S UNIVERSITY BUT BALKED WHEN ASKED TO REVISE HIS DISSERTATION TITLED PSEUDODIONYSIUS AND THE ALLEGORY IN THE GENERAL PROLOGUE TO THE CANTERBURY TALES AND SOON AFTER FLED ACADEME FOR HIS FIRST LOVE HE EXPLAINS WRITING THAT BS THE FIRST TIME CONVINCED ME I DIDN'T WANT TO SPEND A LIFETIME TEACHING IT HE COACHED FOR A COUPLE SEASONS AT BARD COLLEGE IN NEW YORK AND DID SOME NBA SCOUTING THEN FRIEND PHIL JACKSON A FORMER NEW YORK KNICK ASKED HIM TO BE HIS ASSISTANT WITH THE CBA'S ALBANY PATROONS FOR JACKSON THE POST LED TO NBA TITLES WITH THE CHICAGO BULLS FOR ROSEN IT LED TO MORE CBA JOBS AS HEAD COACH IN SAVANNAH GA ROCKFORD ILL OKLAHOMA CITY AND FINALLY IN 199192 ALBANY HIS CBA STAY WAS HIGHLIGHTED BY A CHAMPIONSHIPFINALS BERTH AT ROCKFORD IN 1989 THE DOZEN OR SO OF HIS PLAYERS WHO GRADUATED TO THE BIGS AND HIS 1992 NOVEL THE COCKROACH BASKETBALL LEAGUE WHICH HE SAYS WAS AIMED AT CAPTURING THE BASIC ABSURDITY OF THE CIRCUIT THE MAIN THINGS ABOUT THE CBA WERE THAT EVERYBODY COACHES PLAYERS REFS WANTED TO BE SOMEWHERE ELSE AND THOUGHT HE WAS THERE ONLY BECAUSE SOMEBODY SCREWED HIM HE AVERS UNFORTUNATELY THAT INCLUDED HIM THE PLAN WAS FOR ME TO JOIN PHIL AS AN ASSISTANT IN CHICAGO BUT I GUESS I DIDN'T FIT THE BULLS' CORPORATE IMAGE HE ALLOWS I'M THE SPIRIT OF WOODSTOCK PAST AND ALL THE TROUBLE I GOT INTO DIDN'T HELP AS A CHARACTER IN COCKROACH PUTS IT THOUGH COACHING BEATS WORKING IT ALSO BEATS NOT WORKING SO AFTER A YEAR DEVOTED TO PENNING HIS NEXT NOVEL THE HOUSE OF MOSES ALLSTARS IT'S ABOUT A BEARDED TOURING BASKETBALL TEAM IN THE '30S ROSEN IS BACK ON THE BENCH WITH THE NEW PALTZ WOMEN EVEN THE CBA IT AIN'T SIX OF HIS 10 CHARGES ARE FRESHMEN ONE OF THE OTHERS IS A 31YEAROLD MOTHER OF TWO AND HIS TALLEST PLAYER WHO STANDS 6FOOT0 HAS SMALL HANDS AND FEET AND WANTS TO PLAY THE GAME WITH HER FINGERTIPS HE'S HAD TO CLEAN UP HIS LANGUAGE AND CEASE THREATENING TO TRADE HIS PLAYERS TO YAKIMA IF THEY BOTCH A PATTERN AND HIS TECHNICALFOUL TOTAL THROUGH EIGHT GAMES STANDS AT WHAT THE TV PITCHMEN MIGHT CALL A LOW LOW THREE HE'S LOVING IT THE GIRLS ARE BRIGHT AND HARDWORKING AND WANT NOTHING MORE FROM THE GAME THAN TO PLAY IT IT DOESN'T GET ANY PURER THAN THAT HE SAYS NOW IF THE REFS WOULD JUST GET LOST 9401070001 940107 WHAT'S NEWS BUSINESS AND FINANCE VIACOM AND BLOCKBUSTER ARE NEGOTIATING A MERGER AIMED AT ENABLING VIACOM TO TOP RIVAL QVC'S 98 BILLION BID IN THE BATTLE FOR PARAMOUNT IF VIACOM DOESN'T MAKE A NEW OFFER BY THE END OF TODAY QVC'S DILLER COULD WIN THE CONTEST BUT A VIACOMBLOCKBUSTER MERGER COULD PROLONG THE FIGHT FOR WEEKS WITH VIACOM LIKELY TO RAISE ITS CURRENT BID VALUED AT 93 BILLION THE BIGGEST US RETAIL CHAINS REPORTED MODERATE SALES GAINS FOR THE HOLIDAY PERIOD BUT THE RESULTS WERE ACHIEVED ONLY AFTER STEEP DISCOUNTING ESPECIALLY IN THE WEAK APPAREL SECTOR THE SEC IS INVESTIGATING WHETHER FORMER INVESCO FUNDS GROUP PORTFOLIO MANAGER JOHN KAWESKE VIOLATED FEDERAL SECURITIES LAWS BY ALLEGEDLY FAILING TO REPORT CERTAIN TRADES IN HIS PERSONAL ACCOUNT TO HIS EMPLOYER US MUTUAL STOCK FUNDS GAINED 1254 IN 1993 A YEAR IN WHICH INVESTORS SAW ACROSSTHEBOARD STRENGTH MUTUAL FUNDS INVESTING IN FOREIGN ISSUES SOARED 3940 ON AVERAGE PRUDENTIAL SECURITIES INVESTORS WHO BOUGHT LIMITED PARTNERSHIPS MORE THAN SIX YEARS AGO CAN STILL PURSUE A PRIVATE ARBITRATION CLAIM AGAINST THE BROKERAGE FIRM A STATE JUDGE RULED BONDHOLDERS OF RH MACY COULD END UP ON THE LOSING END OF THE RETAILER'S REORGANIZATION IF SENIOR CREDITORS ATTEMPT A CRAM DOWN AN OFTENTHREATENED THOUGH LITTLEUSED MANEUVER IN BANKRUPTCY WORKOUTS LABOR SECRETARY REICH SENT BOND PRICES SOARING BY SAYING THAT TODAY'S LABOR DATA PROBABLY WOULD SHOW PAYROLL GROWTH BELOW EXPECTATIONS THE LABOR DEPARTMENT LATER QUALIFIED HIS REMARKS THE TREASURY'S 30YEAR ISSUE ENDED UP 3/4 AND ITS YIELD FELL TO 634 HONG KONG STOCKS FELL 65 AND LEFT INVESTORS WONDERING WHETHER THE DROP MARKED THE END OF A LONG BULL RUN THE WHITE HOUSE UNVEILED ITS PLAN FOR CREATING A GOVERNMENT CORPORATION TO MANAGE THE NATION'S AIRTRAFFIC CONTROL SYSTEM IT ALSO PROPOSED LIMITING HOW LONG CARRIERS IN BANKRUPTCY PROCEEDINGS CAN HOLD LEASES AT AIRPORTS COMMERCE SECRETARY BROWN SUGGESTED A MAJOR ROLE FOR THE FCC AND OTHER REGULATORS IN LAYING GROUND RULES FOR TELECOMMUNICATIONS COMPETITION MERRYGOROUND IS ASKING ITS LARGEST SUPPLIERS FOR A NINEMONTH MORATORIUM ON PAYMENTS OF ITS TRADE DEBTS GOLDEN WEST FINANCIAL'S CHAIRMAN TOOK HIS 630 MILLION OFFER FOR TROUBLED CALFED DIRECTLY TO KEY SHAREHOLDERS AFTER BEING REBUFFED BY ITS BOARD THE BULK OF MGM'S 1992 LAWSUIT AGAINST THE STUDIO'S FORMER OWNER KIRK KERKORIAN AND OTHERS WAS THROWN OUT BY A STATE COURT JUDGE BUT A SIMILAR SUIT BY MGM'S OWNER CREDIT LYONNAIS WASN'T DIRECTLY AFFECTED T2 MEDICAL DISCLOSED THAT THE SEC IS STUDYING ITS RESTATEMENT LAST YEAR OF TWO QUARTERLY EARNINGS REPORTS AIG IS SET TO OFFER PATENTINFRINGEMENT INSURANCE THAT WILL COVER UP TO 5 MILLION A YEAR FOR LIABILITY AND LEGAL EXPENSES INCURRED BY DEFENDANTS IN PATENT CASES A MOVE THAT REFLECTS THE GROWING IMPORTANCE OF PATENT PROTECTION IN HIGHTECHNOLOGY INDUSTRIES AT&T LAUNCHED A BROADSIDE AGAINST THE CABLETV INDUSTRY WARNING THAT CABLE AND LOCAL TV DISTRIBUTION FIRMS WOULD IMPEDE THE FLOW OF INFORMATION IF THEY FOLLOW CABLE'S CURRENT GATEKEEPING PRACTICES BONDS LEHMAN BROTHERS TREASURY INDEX 552644 UP 3842 COMMODITIES OIL 1542 A BARREL UP 8 CENTS DOW JONES FUTURES INDEX 14107 OFF 015 SPOT INDEX 12857 UP 011 DOLLAR 11265 YEN OFF 025 17445 MARKS UP 00050 9401060187 940106 MARKETING & MEDIA MARKETSCAN PRIVATE LABELS SEEK TO SHAKE UP BEER MARKET BUT SO FAR FALL FLAT BY EBEN SHAPIRO NOW IT'S TUDOR TIME GUZZLERS OF MILLER AND OTHER BIG BRANDS NEVER DEVELOPED MUCH OF A TASTE FOR A&P'S NOW DEFUNCT TUDOR BEER BUT INTEREST IN PRIVATELABEL BEER IS BREWING AMONG SOME COMPANIES NOW THAT CONSUMERS HAVE GROWN ACCUSTOMED TO PUFFING CHEAP CIGARETTES AND DRINKING CHEAP COLAS WHILE TUDOR WON'T RETURN GREAT ATLANTIC & PACIFIC TEA CO THE BIG SUPERMARKET OPERATOR IS EXPLORING REINTRODUCING A BEER THIS TIME UNDER ITS MASTER CHOICE OR AMERICA'S CHOICE STORE BRAND NAMES OTHER RETAILERS AND BEVERAGE MAKERS ALSO ARE PLANNING PRIVATELABEL BEERS THE BEER MARKET IS A SITTING DUCK SAYS DAVID NICHOL A PRIVATELABEL CONSULTANT WITH LOBLAW COS AND OTHER COMPANIES THE BEER COMPANIES ARE AS VULNERABLE AS THE SOFTDRINK COMPANIES AND THE CIGARETTE COMPANIES PERHAPS BUT SO FAR THE NATION'S BIG BREWERS INCLUDING THE THREE LARGEST ANHEUSERBUSCH COS PHILIP MORRIS COS' MILLER BREWING SUBSIDIARY AND ADOLPH COORS CO HAVE FOUND AN EFFECTIVE ALBEIT PAINFUL WAY TO NEUTRALIZE PRIVATELABEL COMPETITION THEY ARE DISCOUNTING HEAVILY THEIR MAINSTAY PREMIUM BRANDS SUCH AS ANHEUSER'S BUDWEISER AND FOR TRULY STINGY QUAFFERS THEY'RE OFFERING UP CHEAP BRANDS SUCH AS NATURAL LIGHT ANHEUSER KEYSTONE COORS AND MILWAUKEE'S BEST MILLER SOME OF WHICH COST EVEN LESS THAN PRIVATE LABEL AS A RESULT PRIVATELABEL BEER PENETRATION IS ONE OF THE LOWEST IN ANY SUPERMARKET CATEGORY LESS THAN 1 AND FALLING ACCORDING TO DATA PROVIDED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE SOME BEER OBSERVERS PLAY DOWN THE POTENTIAL FOR PRIVATELABEL BEER JERRY STEINMAN PUBLISHER OF BEER MARKETER'S INSIGHTS AN INDUSTRY NEWSLETTER BELIEVES CONSUMERS WILL GRAVITATE INSTEAD TO THE CHEAP BRANDS MADE BY THE BIG BREWERS BUT THE MOVES BY THE BIG BREWERS AREN'T STOPPING SOME COMPANIES FROM ENTERING THE MARKET IN CANADA PRIVATELABEL BEER SALES ARE ON THE RISE PROMPTING COTT CORP OF TORONTO A LARGE PRIVATELABEL BEVERAGE MAKER TO PLAN AN ASSAULT IN THE US COTT MAKES PRESIDENT'S CHOICE BEER IN CANADA HAVING LICENSED THE NAME FROM LOBLAW COTT DECLINES TO SAY WHETHER IT WOULD USE THE PRESIDENT'S CHOICE NAME IN THE US BUT ITS PRIVATELABEL BEER IS EXPECTED TO BE SOLD FIRST AT LUCKY STORES INC A BIG CALIFORNIA CHAIN LUCKY OFFICIALS DECLINE TO COMMENT ALREADY AT D'AGOSTINO SUPERMARKETS A NEW YORK SUPERMARKET CHAIN D'AGOSTINO BEER ACCOUNTS FOR ABOUT 3 OF BEER SALES AT THE STORES AND IS DEVELOPING A SMALL LOYAL FOLLOWING IT ATTEMPTS TO MIMIC MICROBREWERY FLAVOR SAYS MARK GEISTFELD A LAW PROFESSOR IN NEW YORK AND AN OCCASIONAL DRINKER OF D'AGOSTINO LIGHT BEER WHILE IT DOESN'T FULLY ACHIEVE THAT EFFECT THERE AREN'T ANY OTHER CHEAP LIGHT BEERS THAT ATTEMPT TO FILL THAT NICHE RETAILERS' INTEREST IN PRIVATELABEL BEER COULDN'T COME AT A WORSE TIME FOR THE BIG BREWERIES LAST MONTH ANHEUSERBUSCH TOLD DISTRIBUTORS IN CALIFORNIA THAT IT PLANNED TO CUT PRICES THERE TO BOLSTER SLUMPING SALES WITH PROFITS UNDER PRESSURE FROM THE EXTENSIVE DISCOUNTING THE THREE LARGEST BREWERS EACH RECENTLY ANNOUNCED JOB CUTS THERE'S LITTLE ROOM TO RAISE PRICES SO BREWERS HAVE BEEN FORCED TO CUT COSTS SAYS MR STEINMAN HE SAYS BEER SHIPMENTS WERE FLAT FOR THE FIRST NINE MONTHS OF 1993 AFTER LESS THAN A 1 INCREASE IN 1992 DESPITE THE PRESSURE TO CUT COSTS ADVERTISING BUDGETS FOR BREWERS REMAIN HIGH MAKING BEER A TEMPTING TARGET FOR PRIVATELABEL COMPETITION HEAVY AD SPENDING OFTEN SIGNALS THAT A CATEGORY IS RIPE FOR ATTACK FROM NONADVERTISED PRIVATELABEL PRODUCTS IN 1992 THE 10 MOST HEAVILY ADVERTISED BEER BRANDS ALONE SPENT 673 MILLION ON ADVERTISING ACCORDING TO COMPETITIVE MEDIA REPORTING PEOPLE ARE PAYING FOR A LOT OF ADVERTISING WHEN THEY BUY BUDWEISER OR MILLER SAYS RICHARD MCMAHON PRESIDENT OF MINNESOTA BREWING CO OF ST PAUL MINN THE COMPANY IS NEGOTIATING WITH SEVERAL RETAIL CHAINS ABOUT STARTING PRIVATELABEL BEER LINES MR MCMAHON ESTIMATES ADVERTISING ADDS ABOUT 2 TO 3 TO A CASE OF BEER THE AVERAGE COST OF A CASE OF BEER IS 1271 COMPARED WITH 907 FOR PRIVATE LABEL ACCORDING TO INFOSCAN DATA BUT BEERINDUSTRY EXECUTIVES CONTEND THAT ADVERTISING IMAGES OF BRAWNY CONSTRUCTION WORKERS AND POOLSHOOTING HIPSTERS PLAY A SIGNIFICANT ROLE IN SELLING BEER PEOPLE DO CARE WHAT BEER THEY DRINK THERE IS A KIND OF PRIDE SAYS A FORMER ANHEUSERBUSCH EXECUTIVE ROBERT S WEINBERG NOW A BEER CONSULTANT IN ST LOUIS HE ADDS THAT PRIVATELABEL BEERS DON'T HAVE MUCH OF AN IMAGE AND PROBABLY WON'T CATCH ON BEER IS A SOCIAL BEVERAGE AND AS SUCH HAS A BADGE VALUE SAYS A SPOKESMAN FOR MILLER BREWING PRIVATELABEL BEERS DON'T HAVE THE TRADITION HERITAGE OR QUALITY IMAGE THAT PREMIUM BRANDS FROM MAJOR BREWERS TYPICALLY HAVE BUT PHILIP MORRIS HAS ALREADY BEEN SEVERELY STUNG BY UNDERESTIMATING THE APPETITE FOR PRIVATELABEL BRANDS IN BOTH ITS CIGARETTE AND CHEESE BUSINESSES OFFICIALS AT ANHEUSERBUSCH AND COORS DECLINED TO COMMENT ON PRIVATELABEL COMPETITION PERHAPS THE MOST CONSIDERABLE OBSTACLE TO PRIVATELABEL BEER REMAINS THE COMPLEX AND VARIED LAWS THAT GOVERN BEER DISTRIBUTION MR MCMAHON OF MINNESOTA BREWING SAYS THAT ONLY ABOUT HALF OF THE STATES IN THE US ALLOW SUPERMARKETS TO SELL BEER WHAT'S MORE A NATIONAL THREETIER SYSTEM BREWER WHOLESALER AND RETAILER MANDATES THAT A MIDDLEMAN BUY BEER FROM BREWERS AND SELL IT TO RETAILERS IN ORDER FOR PRIVATELABEL BEER TO FLOURISH COMPANIES SUCH AS COTT WOULD NEED TO FIND A WAY TO SHIP DIRECTLY TO RETAILERS D'AGOSTINO GETS ITS BEER THROUGH A SMALL WHOLESALER WE FIND IT ABSOLUTELY AMAZING HOW MUCH POLITICAL CLOUT THE WHOLESALERS HAVE SAYS DAVID GOLDMAN A COTT VICE PRESIDENT 9401060186 940106 CANADA SELLS BONDS AT AUCTION OTTAWA THE CANADIAN GOVERNMENT SOLD AT AN AUCTION YESTERDAY 2 BILLION CANADIAN DOLLARS US152 BILLION OF 65 BONDS DUE JUNE 1 2004 AT AN AVERAGE YIELD OF 6673 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9401060185 940106 WHO'S NEWS BANK OF BOSTON CORP BANK OF BOSTON CORP BOSTON WILLIAM C VAN FAASEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BLUE CROSS AND BLUE SHIELD OF MASSACHUSETTS WAS ELECTED A DIRECTOR OF THIS BANK HOLDING COMPANY EXPANDING BOARD MEMBERSHIP TO 16 9401060184 940106 INDUSTRY FOCUS TOP STEELMAKERS WELCOME 1994 WITH 3 PRICE INCREASE GAINS MAY BE UNDERMINED AS STRONG MARKET SPURS IMPORTS OVERCAPACITY BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL BIG STEELMAKERS ARE STARTING THE NEW YEAR WITH A BANG A 3 PRICE INCREASE SLATED FOR THIS WEEK APPEARS TO BE HOLDING STRONG MOREOVER MOST MAJOR STEELMAKERS ARE BOOKED THROUGH THE FIRST QUARTER GIVING THEM CONFIDENCE ABOUT AN ADDITIONAL 2 PRICE INCREASE SCHEDULED FOR JULY WE FINISHED THE FOURTH QUARTER WITH OUR HIGHEST SHIPMENTS OF THE YEAR AND OUR FORWARD ORDER BOOK IS AS STRONG AS ITS BEEN IN THE LAST 12 MONTHS SAID THOMAS J USHER PRESIDENT OF US STEEL A UNIT OF USX CORP ALTHOUGH PURCHASES BY SERVICE CENTERS THE LARGEST BUYER OF STEEL WERE OFF IN JANUARY THEY'RE ALREADY SHOWING GAINS IN FEBRUARY AND MARCH HE SAID IRONICALLY THAT COULD BE A PROBLEM WITH THE US MARKET SO STRONG IMPORTS ARE CERTAIN TO SURGE SAYS PETER MARCUS AN ANALYST WITH PAINEWEBBER INC AND DOMESTIC STEELMAKERS CONFIDENT ABOUT FUTURE DEMAND ARE BEEFING UP CAPACITY INCLUDING NUCOR CORP WHICH IS ADDING SOME 17 MILLION TONS A YEAR AT ITS TWO FLATROLLED MILLS MR MARCUS FIGURES THAT CAPACITY TO PRODUCE HOTROLLED BAND STEEL WILL CLIMB IN 1994 BY THREE MILLION TONS OR ROUGHLY 17 MORE THAN 1993'S SHIPMENTS UNLESS DEMAND INCREASES PROPORTIONALLY EXCESS SUPPLY COULD UNDERMINE ANY PRICE RELIEF INDEED THERE ARE ALREADY SOME SMALL SIGNS OF WEAKNESS IN SOME CASES STEELMAKERS EXTENDED LOWER FOURTHQUARTER PRICES INTO THE FIRST QUARTER BUYERS ARE ALSO REPORTING DIFFICULTY PASSING ON THE PRICE INCREASE WHICH MAY PROMPT THEM TO BALK OR LOOK TO CHEAPER FOREIGN STEEL ROY WOLF PRESIDENT OF SUMMERVILLE STEEL CO IN SEATTLE SAYS HE ENCOUNTERED STRONG RESISTANCE WHEN HE TRIED TO PASS ALONG THE 10 INCREASE IN WHAT HE PAYS FOR BAR PRODUCTS WHILE HIS COMPETITORS ARE EATING THE PRICE RISE HE'S TRYING TO DEVELOP NICHE MARKETS SERVING SMALL TOOL AND DIE MAKERS WHICH ARE OFTEN IGNORED BY LARGER SERVICE CENTERS AND HAVE LITTLE CHOICE BUT TO ACCEPT HIS PRICES BIG STEEL SAYS IT NEEDS STEEPER PRICES TO OFFSET HIGHER COSTS EVEN AFTER THREE LARGELY SUCCESSFUL PRICE INCREASES IN 1993 SOME INTEGRATED PRODUCERS STILL POSTED LOSSES WELL INTO 1993 FOLLOWING BILLIONS IN LOSSES IN 1991 AND 1992 THIS PARTICULAR INCREASE SEEMS TO BE STICKING IN PART BECAUSE RENEGADE STEELMAKERS HAVEN'T TRIED TO GRAB MARKET SHARE BY UNDERMINING THE BOOST NO ONE HAS BROKEN RANKS SAYS ARNOLD W BRADBURD PRESIDENT OF INTERSTATE STEEL SUPPLY CO IN PHILADELPHIA THAT INCLUDES NUCOR THE CHARLOTTE NC MINIMILL THAT HAS OFTEN UNDERMINED PRICE INCREASES BY KEEPING ITS OWN PRICE LOW BUT IS INCREASING PRICES TO COVER THE HIGHER PRICE OF SCRAP ITS PRIMARY RAW MATERIAL IF NUCOR HADN'T GONE UP THE INTEGRATED PRODUCERS' PRICE INCREASE WOULDN'T FLY SAYS CHARLES A BRADFORD AN ANALYST WITH UBS SECURITIES BUT THERE ARE ALSO STRONG FUNDAMENTALS UNDERLYING THIS PRICE INCREASE INVENTORIES AT MILLS AND SERVICE CENTERS ARE AT A HISTORIC LOW COMPARED WITH SHIPMENTS SAYS CHRISTOPHER PLUMMER AN INDUSTRY CONSULTANT WITH RESOURCE STRATEGIES INC THE INDUSTRY SPENT MUCH OF 1993 RUNNING CLOSE TO 90 OF CAPACITY THANKS TO THE CONTINUED STRENGTH OF THE STEELCONSUMING AUTOMOTIVE MARKET NOW DEMAND IS COMING FROM OTHER SECTORS TOO SUCH AS APPLIANCE MAKERS AS HOUSING STARTS CLIMB SIGNALING THE ECONOMY'S BROADENING STRENGTH NOTES MICHELLE GALANTER APPLEBAUM AN ANALYST WITH SALOMON BROTHERS IN FACT STEELMAKERS ARE EXTENDING DELIVERY TIMES TO CATCH UP WITH DEMAND BUTLER MANUFACTURING CO HAS WATCHED ITS STEEL SUPPLIERS PUSH DELIVERY TIMES OUT AS MUCH AS TWO WEEKS IN JUST THE LAST SIX WEEKS SAYS DON PRATT PRESIDENT OF THE COMMERCIAL MAKER OF STEEL BUILDINGS IN KANSAS CITY MO HIGHER SPOTMARKET PRICES ALSO ARE LIKELY TO TRANSLATE INTO CONTRACTED INCREASES WITH BIG AUTO AND APPLIANCE MANUFACTURERS ALTHOUGH PROBABLY NOT AS HIGH AS THE SPOT MARKET'S 3 MOREOVER GIVEN THE CURRENT MARKET STRENGTH INTEGRATED STEELMAKERS ARE ELIMINATING OTHER DISCOUNTS THAT IN EFFECT LOWERED PRICES FOR EXAMPLE CUSTOMERS SAY THEY NO LONGER CAN BUY STEEL BASED ON A THEORETICAL WEIGHT A SYSTEM THAT TYPICALLY AMOUNTED TO FREEBIES FOR BUYERS THE NEW RULE ADDS ANYWHERE FROM 2 TO 10 TO THE COST SAYS MR PRATT OF BUTLER MANUFACTURING ALL THIS COULD CHANGE IF SUPPLY DOES SURGE AS MR MARCUS PREDICTS THERE'S ALREADY BEEN SOME SLIPPAGE IN PRICING HE SAYS ALONG WITH NUCOR'S EXPANSIONS THE INDUSTRY WILL HAVE INTEGRATED PRODUCER LTV CORP'S REVAMPED CLEVELAND WEST PLANT AND GENEVA STEEL'S NEW CONTINUOUS CASTER BOTH OF WHICH WILL ADD CAPACITY INDEED FEARS OF OVERCAPACITY CONTRIBUTED TO BIRMINGHAM STEEL CORP'S DECISION LAST WEEK TO DITCH AN ATTEMPT TO BUILD A MINIMILL IN ARIZONA NORTH STAR STEEL CO A UNIT OF CARGILL INC ALREADY WAS FURTHER ALONG WITH ITS PLANS FOR A SIMILAR VENTURE IN THE STATE IMPORTS ARE ON THE RISE AS WELL A TREND MR MARCUS SAYS BEGAN IN DECEMBER HAVING WON IN JULY THE BULK OF UNFAIR TRADE CASES FILED AGAINST THEM BY US STEELMAKERS FOREIGN PRODUCERS NOW FEEL FREE TO TARGET BUSINESS HERE AND FOREIGN STEELMAKERS HAVE A BIG COST ADVANTAGE FOR INSTANCE COLDROLLED SHEET COSTS 325 A TON IN EUROPE MUCH LESS THAN THE 520 A TON IN THE US MR MARCUS SAYS EVEN WITH 65 A TON SHIPPING COSTS US PRODUCERS HAVE APPEALED THE INTERNATIONAL TRADE COMMISSION RULINGS STRIKING DOWN DUTIES ON FOREIGN STEEL BUT OBSERVERS GIVE THEM LITTLE CHANCE OF SUCCESS AND NOTE THAT NEW CASES WOULDN'T BE REFILED BEFORE FALL US STEEL'S MR USHER SAID HE SEES NO EVIDENCE OF A SUPPLY SURGE IF WE WERE GOING TO SEE THAT WE'D BE SEEING MORE EVIDENCE OF THAT NOW HE SAID MR USHER SAID IT'S DIFFICULT TO FORECAST WHETHER THE JULY PRICE INCREASE WILL STICK THOUGH THE INDUSTRY'S FUNDAMENTALS LOOK STRONG NOW EVEN IF STEELMAKERS DO FACE PRICING PRESSURES OVER THE NEXT FEW MONTHS PAINEWEBBER'S MR MARCUS PREDICTS PRICING POWER WILL RETURN TO THE PRODUCERS BEGINNING IN 1995 THAT'S WHEN HE EXPECTS THE ECONOMIES IN EUROPE AND JAPAN WILL RECOVER FUELING WORLDWIDE DEMAND AND CREATING A STEEL SHORTAGE 9401060183 940106 WHO'S NEWS SIERRA PACIFIC RESOURCES CO SIERRA PACIFIC RESOURCES CO RENO NEV WALTER M HIGGINS 49 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF THIS UTILITY HOLDING COMPANY SUCCEEDING AUSTIN W STEDHAM 65 WHO IS RETIRING MR HIGGINS RETAINS HIS POSITION AS PRESIDENT BUT WILL GIVE UP HIS POST OF CHIEF OPERATING OFFICER MR STEDHAM WILL KEEP HIS SEAT ON THE BOARD 9401060182 940106 BUSINESS BRIEF PACKARD BELL IS PLANNING A MAKEOVER OF ITS HOME PCS TO HUMANIZE' THEM PACKARD BELL ELECTRONICS INC THE LEADER IN THE BOOMING HOMECOMPUTER MARKET PLANS TO ANNOUNCE TODAY A DESIGN AND MARKETING MAKEOVER AIMED AT HUMANIZING ITS MACHINES THE COMPANY'S STRATEGY TO BE UNVEILED AT THE WINTER CONSUMER ELECTRONICS SHOW IN LAS VEGAS INCLUDES REDESIGNED EXTERIORS FOR ALL OF ITS DESKTOP COMPUTERS A NEW LOGO AND A NEW TELEVISION CAMPAIGN EXPECTED LATER THIS YEAR THAT WILL STRESS THE COMPUTERS' USEFULNESS TO TECHNOPHOBES OFFICIALS AT THE CLOSELY HELD COMPUTER MAKER WHICH IS BASED IN CHATSWORTH CALIF SAY THE REVAMPING IS AIMED AT SOFTENING THE IMAGE OF ITS PERSONAL COMPUTERS FOR CONSUMERS STILL INTIMIDATED BY TECHNOLOGY PEOPLE ARE STILL UNCOMFORTABLE WITH THE IDEA THAT A COMPUTER IS A FRIENDLY EASY THING TO USE SAYS MAL D RANSOM PACKARD BELL'S VICE PRESIDENT OF MARKETING PART OF OUR EFFORT IS TO HUMANIZE COMPUTERS TO ACCOMPLISH THAT PACKARD BELL WILL REPLACE ITS STRIPED LOGO WITH A STYLIZED HUMAN FACE AND SIMPLIFY THE PAMPHLETS AND PACKAGING THAT ACCOMPANY ITS PCS ON RETAIL SHELVES A NEW MULTIMEDIA COMPUTER SCHEDULED TO COME OUT NEXT MONTH WILL BE THE FIRST PACKARD BELL MACHINE REDESIGNED TO MAKE IT LOOK FRIENDLIER MR RANSOM SAYS HE WOULDN'T PROVIDE DETAILS OTHER THAN TO SAY THAT IT WILL HAVE A SMOOTHER SIMPLIFIED LOOK THE NEW STRATEGY REFLECTS THE INCREASED COMPETITION IN THE HOMECOMPUTER MARKET ALTHOUGH PACKARD BELL STILL DOMINATES THAT FASTGROWING NICHE IT NOW MUST COMPETE MORE DIRECTLY WITH MACHINES DESIGNED ESPECIALLY FOR HOME USE BY COMPAQ COMPUTER CORP INTERNATIONAL BUSINESS MACHINES CORP AND EVEN MAILORDER MARKETER DELL COMPUTER CORP ALL HAVE EXPANDED THEIR RETAIL PRESENCE IN HOPES OF CAPTURING A HOME PC MARKET THAT HAS BECOME COMPUTING'S HOTTEST DESKTOP NICHE CHANNEL MARKETING CORP A DALLAS COMPUTER CONSULTING FIRM ESTIMATES THAT THE MARKET FOR HOME PCS WILL GROW ABOUT 58 THIS YEAR TO 93 MILLION COMPUTERS FROM 59 MILLION IN 1993 ANALYSTS SAY NEARLY A QUARTER OF ALL PCS SOLD THROUGH MASSMARKET RETAILERS CARRY THE PACKARD BELL LOGO MORE THAN DOUBLE THE MARKET SHARE OF IBM THE NEXTCLOSEST COMPETITOR PACKARD BELL'S MR RANSOM PREDICTS THAT THE COMPANY'S SALES WILL REACH 23 BILLION THIS YEAR COMPARED WITH 125 BILLION IN 1993 9401060181 940106 TANDY'S RETAIL SALES RISE FORT WORTH TEXAS TANDY CORP SAID DECEMBER RETAIL SALES IN THE US ROSE 18 TO 687 MILLION FROM 5814 MILLION A YEAR EARLIER THE ELECTRONICS RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR INCREASED 8 STORES CLOSED UNDER THE COMPANY'S RESTRUCTURING PLAN WEREN'T INCLUDED IN THE RESULTS 9401060180 940106 ASHLAND COAL SHELF REGISTRATION HUNTINGTON WVA ASHLAND COAL INC SAID MOST HOLDERS OF ASHLAND COAL COMMON STOCK ACQUIRED IN CONJUNCTION WITH THE COMPANY'S 1992 ACQUISITION OF DALTEX COAL CORP HAVE ACCEPTED THE COMPANY'S OFFER TO EXTEND THE EFFECTIVENESS OF THE SHELF REGISTRATION STATEMENT THE COMPANY SAID THE EXTENSION COVERS ABOUT 18 MILLION SHARES ASHLAND SAID ITS OBLIGATION TO MAINTAIN THE CURRENT REGISTRATION WOULD HAVE EXPIRED ON THE EARLIER OF THE DATE ALL REGISTERED SHARES ARE SOLD OR MAY 10 ASHLAND SAID IT WOULD MAINTAIN THE AMENDED REGISTRATION STATEMENT FOR A YEAR BEGINNING ON THE DATE THE SECURITIES AND EXCHANGE COMMISSION DECLARES THE AMENDED STATEMENT EFFECTIVE 9401060179 940106 WHO'S NEWS EL PASO ELECTRIC CO EL PASO ELECTRIC CO EL PASO TEXAS THREE SENIOR OFFICERS TOOK VOLUNTARY EARLY RETIREMENT FROM THIS UTILITY COMPANY THEY ARE WILLIAM J JOHNSON 52 YEARS OLD A SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IGNACIO R TRONCOSO 47 SENIOR VICE PRESIDENT OPERATIONS AND WILLIAM W ROYER 49 SENIOR VICE PRESIDENT SPECIAL PROJECTS A COMPANY SPOKESMAN SAID THE RETIREMENTS WERE PART OF THE COMPANY'S EFFORT TO ALIGN ITS CORPORATE STRUCTURE MORE CLOSELY WITH THAT OF CENTRAL & SOUTHWEST CORP OF DALLAS WHICH HAS AGREED TO ACQUIRE THE COMPANY 9401060178 940106 CREATIVE TECHNOLOGY SETTLEMENT SINGAPORE CREATIVE TECHNOLOGY LTD SAID IT WON A SETTLEMENT AGAINST COVOX INC FOR RIGHTS TO THE SOUND BLASTER TRADEMARK CREATIVE THE MAKER OF SOUND BLASTER AUDIO CARDS FOR PERSONAL COMPUTERS LAST YEAR SUED COVOX A SPEECHRECOGNITION SOFTWARE MAKER ALLEGING THAT COVOX'S VOICE BLASTER PRODUCT INFRINGED ON THE SOUND BLASTER NAME UNDER TERMS OF THE SETTLEMENT COVOX AGREED TO DROP ALL OPPOSITIONS TO CREATIVE'S TRADEMARK APPLICATIONS AND WILL PAY ROYALTIES TO CREATIVE FOR USE OF THE VOICE BLASTER NAME ON PRODUCTS SHIPPED BEFORE JUNE 30 1994 AFTER JULY 1 COVOX MAY NOT ADVERTISE OR PROMOTE ITS PRODUCT AS VOICE BLASTER CLOSELY HELD COVOX IN EUGENE ORE DIDN'T RETURN PHONE CALLS 9401060177 940106 WHO'S NEWS SEDGWICK GROUP PLC SEDGWICK GROUP PLC LONDON JIM PAYNE RETIRED AS CHAIRMAN OF SEDGWICK PAYNE LTD A UNIT OF THIS INSURANCE BROKERAGE CONCERN EFFECTIVE LAST FRIDAY MR PAYNE ALSO WILL RETIRE AS VICE CHAIRMAN AND A MEMBER OF SEDGWICK GROUP'S BOARD ON MARCH 3 THE COMPANY SAID THAT THE DEPARTURE OF MR PAYNE 56 YEARS OLD IS VOLUNTARY ADDING THAT HE HAD GRADUALLY REDUCED HIS RESPONSIBILITIES DURING 1993 MR PAYNE WILL BE SUCCEEDED IMMEDIATELY BY JONATHAN GILBERT A BOARD DIRECTOR OF SEDGWICK GROUP AND DEPUTY CHAIRMAN AND MANAGING DIRECTOR OF SEDGWICK PAYNE 9401060176 940106 INTERNATIONAL GOOD NEWS FUELS RUNUP IN SHARES OF EUROTUNNEL BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL COULD IT BE THERE'S A LIGHT AT THE END OF THE CHUNNEL STOCK IN EUROTUNNEL THE ANGLOFRENCH COMPANY THAT WILL OPERATE THE MUCHAWAITED TUNNEL UNDER THE ENGLISH CHANNEL IS ENJOYING A RUNUP THAT BEGAN IN EARLY DECEMBER IN LONDON YESTERDAY EUROTUNNEL PLC SHARES CLOSED AT 644 PENCE 956 UP 14 PENCE 21 CENTS WHILE IN PARIS SHARES OF EUROTUNNEL SA CLIMBED 16 FRENCH FRANCS 27 CENTS TO CLOSE AT 571 FRANCS 968 THAT'S UP ABOUT 40 FROM THE DEC 1 PRICE ON BOTH EXCHANGES BETTER STILL ANALYSTS SEE ROOM FOR EUROTUNNEL SHARES TO RISE EVEN FURTHER DESPITE HINTS OF A PRICE WAR BY CHANNEL FERRY OPERATORS THAT MARKS A BIG CHANGE FROM A YEAR AGO WHEN EUROTUNNEL WAS MIRED IN A DISPUTE WITH CONTRACTORS CASH WAS RUNNING LOW AN OPENING DATE PROVED ELUSIVE AND THE STOCK SANK TO 2810 FRANCS IN PARIS AND 339 PENCE IN LONDON THE TURNAROUND BEGAN DEC 10 WHEN EUROTUNNEL TOOK OVER THE CHANNEL FROM THE BUILDING CONTRACTORS LOWER BRITISH AND FRENCH INTEREST RATES GAVE THE SHARES ADDITIONAL STEAM THEN CAME NEWS THAT THE FRENCH AND BRITISH GOVERNMENTS HAD EXTENDED EUROTUNNEL'S RIGHT TO OPERATE THE TUNNEL FOR AN ADDITIONAL 10 YEARS THAT NEWS ADDED ABOUT 10 TO THE VALUE OF THE SHARES BECAUSE IT BOOSTS THE COMPANY'S LONGTERM REVENUE POTENTIAL ANALYSTS SAY FINALLY THE COMPANY'S LEAD BANKING SYNDICATE ON TUESDAY APPROVED EUROTUNNEL'S FUNDING PLAN WHICH INCLUDES A COMMITMENT BY LENDERS TO PROVIDE NEW FUNDS AND PAVES THE WAY FOR A LONGEXPECTED 500 MILLION 7425 MILLION RIGHTS ISSUE MEANWHILE EVERYTHING IS GO FOR THE MAY 6 OPENING DATE SOME ANALYSTS THINK THE RECENT GOOD NEWS IS JUST THE BEGINNING THEY POINT TO NEXT WEEK WHEN EUROTUNNEL UNVEILS ITS FARE STRUCTURE ON TUESDAY AND THEN A DAY LATER STARTS TO SELL TICKETS AT LONG LAST THE MONEY WILL START TO COME IN BRITISH NEWS REPORTS SAY THE TUNNEL'S BASIC TOURIST RATE FOR PASSENGERS PUTTING THEIR CAR ON EUROTUNNEL'S LE SHUTTLE SERVICE WILL RANGE FROM 160 TO 260 DEPENDING ON THE SEASON THAT WOULD MAKE IT SLIGHTY MORE EXPENSIVE THAN TRAVEL BY BOAT EUROTUNNEL DECLINES TO CONFIRM THE REPORTED FARES BUT THEY REASSURE INVESTORS WORRIED ABOUT AN AIRLINESTYLE ROUND OF FARE CUTS WE DON'T WANT A PRICE WAR BUT OUR PRICES WILL BE COMPETITIVE WITH THE FERRIES SAYS A EUROTUNNEL SPOKESWOMAN EUROTUNNEL UNDOUBTEDLY FACES STIFF COMPETITION FROM THE ESTABLISHED FERRY OPERATORS ON WEDNESDAY STENA SEALINK OWNED BY SWEDEN'S STENA LINE AB ANNOUNCED IT WILL ABANDON ITS PRACTICE OF CHARGING PASSENGERS ACCORDING TO DEPARTURE TIME IN FAVOR OF A SEASONAL FARE STRUCTURE A MOVE THE COMPANY SAYS WILL HELP IT COMPETE WITH EUROTUNNEL THE OTHER FERRY OPERATOR P&O EUROPEAN FERRIES LTD A UNIT OF PENINSULAR & ORIENTAL STEAM NAVIGATION CO OF THE UNITED KINGDOM SAID IT WILL WAIT FOR EUROTUNNEL TO ANNOUNCE ITS PRICE STRUCTURE BEFORE MAKING ANY CHANGES OF ITS OWN AND NOT EVERYONE THINKS EUROTUNNEL IS OUT OF THE DARK JUST YET SKEPTICS POINT FIRST TO THE FACT THAT THE CHANNEL TUNNEL IS AN UNPROVEN ENTERPRISE WITH A HUGE DEBT LOAD THEY NOTE THAT THE ENTIRE CROSSCHANNEL FERRY MARKET FOR PASSENGERS AND FREIGHT PRODUCES ONLY ABOUT 600 MILLION REVENUE A YEAR EUROTUNNEL STILL HAS SEVERAL OUTSTANDING FINANCIAL ISSUES TO RESOLVE AS IT NEARS COMPLETION OF THE 10 BILLION PROJECT ALTHOUGH THE BANK SYNDICATE HAS APPROVED THE COMPANY'S FUNDING PLAN EUROTUNNEL STILL MUST COMPLETE NEGOTIATIONS FOR AN ADDITIONAL 500 MILLION IN LOANS AND THE RIGHTS ISSUE PLANNED FOR THIS SPRING THERE STILL ARE A NUMBER OF HURDLES SUCH AS THE RIGHTS ISSUE AND THE COMPANY'S ABILITY TO GENERATE SUFFICIENT TRAFFIC SAYS ONE LONDON ANALYST WHO ASKS NOT TO BE IDENTIFIED IT'S AN INCREDIBLY SENTIMENTDRIVEN STOCK THAT YOYOS AROUND ON THE SLIGHTEST NEWS 9401060175 940106 ALASKA AIR'S TRAFFIC SEATTLE ALASKA AIR GROUP INC SAID DECEMBER TRAFFIC INCREASED FOR BOTH ITS UNITS ALASKA AIRLINES FLEW 5409 MILLION REVENUE PASSENGER MILES IN DECEMBER UP 31 FROM 4124 MILLION A YEAR EARLIER LOAD FACTOR WAS 622 UP FROM 545 A YEAR EARLIER HORIZON AIR FLEW 529 MILLION REVENUE PASSENGER MILES UP 20 FROM 40 MILLION A YEAR EARLIER LOAD FACTOR FOR THE MONTH WAS 616 UP FROM 574 A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PASSENGER FLOWN ONE MILE LOAD FACTOR IS THE PERCENTAGE OF A CARRIER'S SEATS FILLED BY PAYING PASSENGERS 9401060174 940106 ECONOMY FACTORY ORDERS INCREASED BY 14 DURING NOVEMBER BY JEFF LEEDS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEW ORDERS FOR FACTORY GOODS CLIMBED A HEALTHY 14 IN NOVEMBER THE COMMERCE DEPARTMENT SAID ANOTHER SIGN THAT THE ECONOMY WAS SURGING TO CLOSE OUT 1993 NOVEMBER'S GROWTH CAME ON TOP OF A 12 GAIN IN OCTOBER AND WAS THE FOURTH CONSECUTIVE INCREASE IN FACTORY ORDERS THE PICKUP IN MANUFACTURING ACTIVITY SUGGESTS FACTORY EMPLOYMENT WILL INCREASE SIGNIFICANTLY IN THE COMING MONTHS THE NOVEMBER BOOST IN ORDERS WAS BROADBASED WITH GAINS IN NEARLY EVERY MAJOR INDUSTRY GROUP AIRCRAFT AND AUTO ORDERS WERE PARTICULARLY STRONG THE REPORT CONFIRMS EARLIER COMMERCE DEPARTMENT STATISTICS SHOWING STRONG NOVEMBER INCREASES IN ORDERS FOR DURABLE GOODS THESE BOOKINGS ROSE 19 IN NOVEMBER AFTER CLIMBING 26 IN OCTOBER ORDERS FOR NONDURABLE GOODS WHICH ARE LESS SENSITIVE TO LOW INTEREST RATES WEREN'T AS ROBUST RISING 09 IN NOVEMBER AFTER FALLING 04 IN THE PRECEDING MONTH SOME FIGURES IN THE REPORT CAST SHADOWS ON THE FACTORY JOBS OUTLOOK THE NUMBER OF UNFILLED ORDERS PLUNGED 06 TO ITS LOWEST LEVEL SINCE MAY 1988 ALSO ORDERS FOR INDUSTRIAL MACHINERY ROSE 49 FOLLOWING A 20 INCREASE IN OCTOBER ALTHOUGH THE GAINS BOOSTED THE INDUSTRY'S GROWTH THE MACHINERY SALES TRANSLATE TO FEWER FACTORY JOBS ACCORDING TO THOMAS RUNIEWICZ AN INDUSTRIAL ANALYST WITH THE WEFA GROUP IN SUBURBAN PHILADELPHIA MANUFACTURERS ARE CONTINUING TO GEAR UP TO IMPROVE EFFICIENCY MR RUNIEWICZ SAID THERE'S A LOT OF INVESTMENT IN PLANT MACHINERY WHICH MEANS LOWER JOB GROWTH STILL ANALYSTS WERE ENCOURAGED BY THE APPARENT TURNAROUND AT THE NATION'S FACTORIES AFTER MONTHS OF DISAPPOINTING GROWTH THE WHOLE INDUSTRY SYSTEM WILL BE LOOKING UPWARD MR RUNIEWICZ SAID THIS IS SETTING THE STAGE FOR A SOLID 1994 ORDERS FOR STONE AND GLASS PRODUCTS AND PRIMARY METALS ALL LINKED TO STEADY GROWTH IN THE CONSTRUCTION BUSINESS POSTED HEALTHY GAINS DURING THE MONTH ELECTRONICEQUIPMENT ORDERS PLUMMETED 77 OFFSETTING A 45 RISE IN OCTOBER THE CATEGORY THAT INCLUDES APPLIANCES POSTED A 203 DECLINE AFTER A 151 GAIN IN OCTOBER ALL FIGURES ARE SEASONALLY ADJUSTED HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9401060173 940106 INVESCO FUNDS FIRES KAWESKE A STAR MANAGER BY ROBERT MCGOUGH AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL IN A MOVE THAT STUNNED THE MUTUALFUND INDUSTRY INVESCO FUNDS GROUP FIRED STAR PORTFOLIO MANAGER JOHN KAWESKE FOR ALLEGEDLY VIOLATING INVESCO'S RULES ABOUT REPORTING PERSONAL SECURITIES TRADES DENVERBASED INVESCO SAID MR KAWESKE WHOM IT DISMISSED ON TUESDAY HAD VIOLATED ITS CODE OF CONDUCT BY NOT GETTING APPROVAL FOR OR NOT REPORTING CONFIRMATION OF A NUMBER OF SECURITIES TRADES WE STRESS THAT THESE UNFORTUNATE CIRCUMSTANCES INVOLVE MR KAWESKE'S PERSONAL ACCOUNTS AND HAD ABSOLUTELY NO IMPACT ON INVESTORS IN THE INVESCO FUNDS DAN HESSER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF INVESCO FUNDS GROUP SAID IN A PRESS RELEASE JOHN ZESCHIN EXECUTIVE VICE PRESIDENT AT INVESCO SAID MR KAWESKE APPARENTLY COMMITTED SOME TECHNICAL VIOLATIONS OF FEDERAL LAW GOVERNING MUTUAL FUNDS BUT HE STRESSED THAT THOSE VIOLATIONS WEREN'T MAJOR MATTERS HE SAID INVESCO REPORTED TO THE SECURITIES AND EXCHANGE COMMISSION WHAT HAS TRANSPIRED ANDREW LEVANDER MR KAWESKE'S ATTORNEY SAID I DON'T BELIEVE THERE ARE ANY VIOLATIONS THAT OCCURRED HERE BUT IF THERE ARE THEY ARE HIGHLY TECHNICAL IN NATURE MR KAWESKE 52 YEARS OLD WAS FIRED FROM HIS POSITIONS AS MANAGER OR COMANAGER FOR THREE INVESCO FUNDS WITH ASSETS OF 46 BILLION OR NEARLY HALF THE 10 BILLION MANAGED AT INVESCO FUNDS GROUP MR KAWESKE REACHED AT HIS HOME DESCRIBED HIS FIRING AS QUITE SHOCKING HE SAID THAT THE VIOLATIONS OF INVESCO'S CODE OF CONDUCT WERE TECHNICAL AND FEW IN NUMBER AND THAT INVESCO'S ACTION WENT BEYOND REASON JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER IN CHICAGO COMMENTED THAT THE DRACONIAN LANGUAGE USED IN THE ANNOUNCEMENT INDICATES THAT THERE IS MORE TO THIS STORY MOST MANAGERS JUST GET A SLAP ON THE WRIST IF THEY FAIL TO FILL OUT THE PAPERWORK MR KAWESKE ENJOYED CLOSE TO SUPERSTAR STATUS AMONG MUTUALFUND MANAGERS ESPECIALLY A COUPLE OF YEARS AGO WHEN THE HEALTHCARE STOCKS HE SPECIALIZED IN DROVE INVESCO STRATEGIC HEALTH SCIENCES FUND TO THE PINNACLE OF PERFORMANCE HIS FUNDS HAVE SUFFERED ALONG WITH THE DOWNTURN IN HEALTHCARE AND BIOTECHNOLOGY STOCKS DURING THE PAST TWO YEARS BUT INVESCO INDUSTRIAL INCOME FUND WHICH HE RAN IN CONJUNCTION WITH TWO OTHER PORTFOLIO MANAGERS WAS CONSIDERED ONE OF THE BESTPERFORMING LOWRISK MUTUAL FUNDS IN THE COUNTRY HE HAS FREQUENTLY BEEN PROFILED IN NATIONAL BUSINESS AND INVESTING PUBLICATIONS MR KAWESKE'S FALL FROM GRACE IS REALLY SURPRISING DEFINITELY OUT OF LEFT FIELD SAID KENNETH GREGORY EDITOR OF NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER I CAN'T THINK OF ANY OTHER INSTANCES OF A BIGNAME HIGHPROFILE MANAGER BEING FIRED FOR ETHICAL REASONS FROM THE '80S ON HE HAS MADE QUITE A NAME FOR HIMSELF IF THE ALLEGATIONS AGAINST MR KAWESKE ARE TRUE IT GIVES US ALL IN THE FUND INDUSTRY A BAD NAME SAID RODNEY LINAFELTER COMANAGER OF TWO FUNDS AT BERGER ASSOCIATES ALSO IN DENVER HISTORICALLY THIS INDUSTRY HAS BEEN VERY VERY CLEAN MR KAWESKE HASN'T BEEN CHARGED WITH DOING ANYTHING ILLEGAL SEVERAL YEARS AGO SOME FUND MANAGERS AND ANALYSTS WERE CAUGHT UP IN CHARGES THAT THEY HAD ACCEPTED ILLEGAL INDUCEMENTS TO BUY JUNK BONDS FROM DREXEL BURNHAM LAMBERT SECURITIES FIRMS INCLUDING FUND ADVISERS ARE BY FEDERAL LAW REQUIRED TO HAVE A COMPLIANCE MANUAL AND CODE OF ETHICS TO GUARD AGAINST THE USE OF INSIDE INFORMATION SAYS ROY ADAMS A FUND ATTORNEY AT HELLER EHRMAN WHITE & MCAULIFFE IN SAN FRANCISCO AMONG OTHER THINGS MUTUAL FUNDS WANT TO GUARD AGAINST AN EMPLOYEE FRONT RUNNING OR BUYING A STOCK BEFORE THE FUND BEGINS BUYING MR ADAMS SAID THE HEAVY BUYING POWER OF A MUTUAL FUND COULD BOOST THE PRICE OF A STOCK GIVING AN ARTIFICIAL GAIN TO THE FRONTRUNNING BUYER CODES OF CONDUCT ARE DESIGNED TO PREVENT SUCH ABUSES INVESCO STRESSED THAT MR KAWESKE DIDN'T ENGAGE IN FRONTRUNNING OR OTHER ILLEGAL TRADING IT FIRED HIM FOR VIOLATING THE REPORTING PROVISIONS OF THE CODE OF CONDUCT IT SAID MR ZESCHIN OBSERVED THAT MR KAWESKE SIMPLY HASN'T COMPLIED BY INVESCO'S RULES IN A SUBSTANTIAL WAY WHY WOULD INVESCO FIRE A TOPLEVEL FUND MANAGER FOR COMPLIANCE PROBLEMS ALONE THE PRINCIPAL REASON IS THAT WE TRY TO ESTABLISH AN ENVIRONMENT OF TRUST AND COMPLIANCE WITH INVESCO'S RULES MR ZESCHIN SAID IN THE SITUATION WITH KAWESKE WE FOUND THAT THE EXTENT OF NONCOMPLIANCE EVEN THOUGH IT DIDN'T AFFECT INVESTORS IN THE FUNDS WAS SUCH THAT WE DIDN'T THINK HE COULD CARRY ON HIS RESPONSIBILITIES MR KAWESKE SAID THAT IN ONLY ONE INSTANCE AMONG 20 PUBLIC STOCK PURCHASES HAD HE FAILED TO GET WRITTEN PRIOR APPROVAL HE ADDED THAT HE HAD STANDING INSTRUCTIONS TO CHARLES SCHWAB CORP HIS BROKER TO SEND CONFIRMATIONS OF HIS TRADES TO INVESCO AND HE SUSPECTED THAT INVESCO HAD LOST SOME OF THOSE INVESCO WHICH MANAGES 10 BILLION IN MUTUAL FUNDS IS OWNED BY UNITED KINGDOMBASED INVESCO PLC AN INVESTMENT MANAGER WITH 64 BILLION IN ASSETS IN THE PAST TWO YEARS TWO OTHER HIGHLY REGARDED FUND MANAGERS LEFT INVESCO IN ADDITION JOHN BUTLER FORMER PRESIDENT OF THE INVESCO FUNDS RETIRED IN LATE 1993 MR KAWESKE SAID HE HADN'T BEEN ON THE BEST OF RELATIONS WITH INVESCO RECENTLY I'VE BEEN A LITTLE UNHAPPY WITH THE WAY THINGS WERE GOING HE CITED A GROWING BUREAUCRACY THAT INTERFERED WITH SOME OF HIS INVESTMENT DECISIONS AND PERSONALITY PROBLEMS AFTER MR BUTLER'S DEPARTURE INVESCO'S MR ZESCHIN REPLIED THAT MR KAWESKE'S DEALINGS WITH MR BUTLER AND DAN HESSER HIS SUCCESSOR WOULD HAVE BEEN LIMITED BECAUSE THEY WERE ON THE MARKETING SIDE OF THE BUSINESS MR KAWESKE ALSO SAID HE WAS ASKED BY INVESCO MANAGEMENT IF HE WERE PLANNING TO SET UP ANOTHER FUND GROUP TO WHICH HE REPLIED THE THOUGHT HAD ENTERED MY MIND MR ZESCHIN SAID THAT GIVEN THE HEAVY DEMAND FOR FUND MANAGERS WITH STRONG RECORDS IT WOULD NOT BE UNUSUAL TO HEAR THAT A MANAGER SUCH AS MR KAWESKE WAS CONSIDERING ALTERNATIVE JOBS WHEN ASKED ABOUT HIS FUTURE PLANS MR KAWESKE SAID I HAVE A NUMBER OF OPPORTUNITIES AND OPTIONS ONE OPTION IS TAKING OVER BECOMING CHAIRMAN OF THE BOARD OF A BIOTECHNOLOGY COMPANY ANOTHER OPTION IS TO GET MORE INVOLVED WITH VENTURE CAPITAL THERE ARE TIMES WHEN PEOPLE SUFFER INJUSTICES MR KAWESKE ADDED 9401060172 940106 ITT'S ANTILOCK BRAKE SALES UP NEW YORK ITT CORP SAID ITS AUTOMOTIVE UNIT SOLD MORE THAN 1 BILLION IN ANTILOCK BRAKE SYSTEMS IN 1993 REPRESENTING A GAIN OF ABOUT 10 FROM 1992 SALES THE COMPANY WHICH ALSO HAS INTERESTS IN HOTELS FINANCIAL SERVICES AND INSURANCE SAID THE AUTOMOTIVE UNIT NOW HAS ABOUT 75 BILLION IN SALES BOOKED THROUGH 1998 FOR ITS ANTILOCK BRAKE AND TRACTION CONTROL SYSTEMS 9401060171 940106 FINANCING BUSINESS AGNICOEAGLE MINES LTD AGNICOEAGLE MINES LTD TORONTO SAID IT PLANS TO ISSUE AS MUCH AS 98 MILLION OF CONVERTIBLE 10YEAR NOTES IN BOTH CANADA AND THE US THE GOLD MINING CONCERN SAID IT WILL USE THE EXPECTED NET PROCEEDS OF 80 MILLION TO FINANCE DEVELOPMENT AND EXPLORATION PROJECTS AND FOR GENERAL CORPORATE PURPOSES THE ISSUE WILL BE UNDERWRITTEN BY A GROUP OF INVESTMENT DEALERS HEADED BY MERRILL LYNCH & CO TERMS OF THE ISSUE WHICH IS EXPECTED TO CLOSE BY THE END OF THE MONTH HAVEN'T BEEN DETERMINED 9401060170 940106 WHO'S NEWS CROWN AMERICAN REALTY TRUST CROWN AMERICAN REALTY TRUST JOHNSTOWN PA FRANK T LAZORCHAK 46 YEARS OLD EXECUTIVE VICE PRESIDENT OF ASSET MANAGEMENT AT THIS REAL ESTATE INVESTMENT TRUST RESIGNED EFFECTIVE DEC 31 FOR PERSONAL REASONS CROWN AMERICAN SAID IT IS ACTIVELY SEEKING A SUCCESSOR TO MR LAZORCHAK IN THE INTERIM THE COMPANY'S PRESIDENT MARK PASQUERILLA WILL ASSUME THE ASSETMANAGEMENT RESPONSIBILITIES 9401060169 940106 INTERNATIONAL MITSUKOSHI TO CUT PAYROLL 10 TOKYO MITSUKOSHI LTD ONE OF JAPAN'S MAJOR DEPARTMENTSTORE CHAINS IS PLANNING TO CUT ITS 12600PERSON LABOR FORCE BY 10 BY 1997 A SPOKESMAN SAID THE COMPANY PLANS TO SHED WORKERS THROUGH ATTRITION AND BY ELIMINATING THE HIRING OF NEW GRADUATES THE SPOKESMAN SAID THE LABOR ADJUSTMENT IS IN LINE WITH THE COMPANY'S LONGTERM MANAGEMENT PLAN AND DOESN'T REFLECT EROSION OF THE COMPANY'S RESULTS 9401060168 940106 WHO'S NEWS CLINTRIALS INC CLINTRIALS INC NASHVILLE TENN PAUL J OTTAVIANO 47 YEARS OLD WAS PROMOTED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT OF US OPERATIONS FOR THIS PHARMACEUTICAL AND BIOTECHNOLOGY CLINICAL RESEARCH CONCERN MR OTTAVIANO'S PREVIOUS POST WAS AS EXECUTIVE VICE PRESIDENT OF OPERATIONS FOR THE COMPANY'S NORTH CAROLINA LOCATION 9401060167 940106 WHO'S NEWS ESCAGENTICS CORP ESCAGENTICS CORP SAN CARLOS CALIF RICHARD E MOSER A PRUDENTIAL SECURITIES INC EXECUTIVE WAS NAMED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS BIOTECHNOLOGY COMPANY MR MOSER 52 YEARS OLD WAS PREVIOUSLY A SENIOR VICE PRESIDENT OF THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT AND PRESIDENT OF R&D FUNDING CORP AN AFFILIATE OF PRUDENTIAL SECURITIES AS PRESIDENT AND CHIEF EXECUTIVE AT ESCAGENTICS MR MOSER SUCCEEDS RAYMOND J MOSHY 68 WHO RETAINS HIS POSITION AS CHAIRMAN AS A DIRECTOR MR MOSER SUCCEEDS DOUGLAS J MACMASTER JR 62 WHO RETAINS HIS POST AS CHAIRMAN OF THE PHYTOPHARMACEUTICALS INC UNIT 9401060166 940106 WHO'S NEWS APPLIED MATERIALS INC APPLIED MATERIALS INC SANTA CLARA CALIF JAMES W BAGLEY 54YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE NEW POST OF VICE CHAIRMAN HE REMAINS CHIEF OPERATING OFFICER AS PRESIDENT HE WILL BE SUCCEEDED BY DAN MAYDAN 59 WHO WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT MESSRS BAGLEY AND MAYDAN JOIN THIS SEMICONDUCTOR SUPPLIER'S NEWLY FORMED THREEMEMBER OFFICE OF THE CHIEF EXECUTIVE THE OTHER MEMBER IS JAMES C MORGAN 55 CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9401060165 940106 WHO'S NEWS POLICY MANAGEMENT SYSTEMS CORP POLICY MANAGEMENT SYSTEMS CORP COLUMBIA SC TIMOTHY V WILLIAMS 44 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS SOFTWARE AND INFORMATIONSERVICES PROVIDER MR WILLIAMS WAS THE CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT FOR CORPORATE SERVICES OF HOLIDAY INN WORLDWIDE LAST SPRING POLICY MANAGEMENT CAME UNDER SCRUTINY BY THE SECURITIES AND EXCHANGE COMMISSION FOR ITS FINANCIAL REPORTING AND ACCOUNTING PROCEDURES AN INTERNAL AUDIT BY ACCOUNTING FIRM COOPERS & LYBRAND IS EXPECTED TO BE RELEASED EARLY THIS YEAR 9401060164 940106 MET LIFE GEORGIA REACH SETTLEMENT OVER SALES TACTICS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL GEORGIA HAS BECOME THE FIRST STATE TO REACH A SETTLEMENT WITH METROPOLITAN LIFE INSURANCE CO OVER ALLEGEDLY MISLEADING SALES TACTICS MET AGREED TO PAY A 250000 FINE TO THE GEORGIA INSURANCE DEPARTMENT WITHOUT ADMITTING OR DENYING ANY WRONGDOING HOWEVER THE COMPANY AGREED TO REIMBURSE ANY AGGRIEVED CUSTOMERS AND TO COOPERATE WITH GEORGIA INVESTIGATORS IN PROBES AGAINST INDIVIDUAL LIFEINSURANCE AGENTS THE GEORGIA ACTION IS SEPARATE FROM A JOINT INVESTIGATION BEING CONDUCTED BY 13 OTHER STATES LIKE GEORGIA THE OTHER STATES ARE LOOKING INTO ALLEGATIONS THAT MET TRICKED CUSTOMERS INTO BUYING LIFE INSURANCE BY PROMOTING IT AS A RETIREMENT ACCOUNT THE FINE WAS THE BIGGEST EVER IMPOSED BY GEORGIA AGAINST AN INSURANCE COMPANY AND IS LARGE BY THE STANDARDS OF ANY STATE INSURANCE COMPANIES WILL BE HELD ACCOUNTABLE WHEN THEY TAKE ADVANTAGE OF THE PUBLIC'S TRUST SAID TIM RYLES GEORGIA STATE INSURANCE COMMISSIONER INSURANCE EXPERTS SAY IT IS POSSIBLE THAT THE OTHER STATES COULD COME DOWN HARDER ON THE COMPANY THAN GEORGIA ALTHOUGH THEY BELIEVE IT IS UNLIKELY GIVEN THAT MET HAS ALREADY TAKEN STEPS TO COOPERATE WITH REGULATORS THEY ADD THAT INSURANCE COMMISSIONERS ALSO BELIEVE THE NEGATIVE PUBLICITY SURROUNDING A STATE DISCIPLINARY ACTION IS ENOUGH TO CHASTEN A COMPANY INSURANCE COMPANIES ARE AS CONCERNED ABOUT THE ADVERSE PUBLICITY AS THE FINE SAID DONALD GABAY AN INSURANCE ATTORNEY WITH STROOCK STROOCK & LAVAN IN NEW YORK MET SAID IT WAS PLEASED WITH THE GEORGIA SETTLEMENT WE WILL CONTINUE WORKING WITH REGULATORS IN OTHER AFFECTED STATES TO ADDRESS ANY OUTSTANDING ISSUES SAID A SPOKESMAN SEPARATELY THE NEW YORK INSURANCE DEPARTMENT WARNED INSURERS TO EXAMINE THEIR MARKETING PRACTICES AND OBTAIN MORE CONTROL OVER THEIR SALES FORCE THE DEPARTMENT WHICH IS INVESTIGATING THE SALES PRACTICES OF SIX OF THE NATION'S 20 BIGGEST LIFE INSURERS SAID IT WILL BEGIN TO INTENSIFY ITS AUDITS OF INSURANCE COMPANIES IN ORDER TO ROOT OUT UNLAWFUL OR IMPROPER ACTIVITIES THE DEPARTMENT DECLINED TO NAME THE SIX COMPANIES ADDING IT MAY INVESTIGATE MORE INSURERS 9401060163 940106 WHO'S NEWS CEDAR FAIR MANAGEMENT CO CEDAR FAIR MANAGEMENT CO SANDUSKY OHIO DONALD H MESSINGER 50 YEARS OLD JAMES L MIEARS 58 AND THOMAS A TRACY 61 WERE NAMED TO THE COMPANY'S BOARD FOR 1994 THE COMPANY IS THE MANAGING GENERAL PARTNER OF CEDAR FAIR LP AN AMUSEMENTPARK COMPANY RICHARD L KINZEL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BOTH CONCERNS AND MARY ANN JORGENSON A PARTNER IN LAW FIRM SQUIRE SANDERS & DEMPSEY IN CLEVELAND BOTH RETAINED THEIR POSITIONS ON THE BOARD COMPANY OFFICIALS SAID SHAREHOLDERS DECIDED TO REDUCE THE SIZE OF THE BOARD TO FIVE FROM NINE MEMBERS 9401060162 940106 TEXAS INSTRUMENTS ACCORD DALLAS TEXAS INSTRUMENTS INC AND SAMSUNG ELECTRONICS CO SAID THEY REACHED A DEFINITIVE AGREEMENT TO JOINTLY OWN AND OPERATE TI'S COMPUTER CHIP PLANT IN PORTO PORTUGAL UNDER THE DEAL FIRST ANNOUNCED IN LATE 1992 THE TWO COMPANIES WILL INVEST MORE THAN 50 MILLION IN THE FACILITY TI AN ELECTRONICS COMPANY WILL REMAIN THE MAJORITY OWNER THOUGH SAMSUNG BASED IN SEOUL SOUTH KOREA HAS AN OPTION TO INCREASE ITS INVESTMENT IN THE PLANT TO 50 OVER THE NEXT THREE YEARS THE PORTUGAL PLANT WILL OPERATE SEPARATE MANUFACTURING LINES TO ASSEMBLE AND TEST EACH COMPANY'S INTEGRATED CIRCUITS 9401060161 940106 SPORTS INSIDE BASEBALL OWNERS GRAPPLE WITH REVENUE SHARING BY JOHN HELYAR STAFF REPORTER OF THE WALL STREET JOURNAL WITH BASEBALL INCREASINGLY BECOMING A SPORT OF THE HAVES AND THE HAVENOTS OWNERS ARE TAKING ANOTHER SWING AT THE THORNY ISSUE OF REVENUESHARING AT A MEETING IN CHICAGO TODAY REPRESENTATIVES OF MAJOR LEAGUE BASEBALL'S 28 TEAMS WILL TRY TO AGREE ON A FORMULA THAT HAS LONG ELUDED THEM HOW TO LEVEL THE FINANCIAL PLAYING FIELD BETWEEN TEAMS IN BIG CITIES LIKE NEW YORK AND LOS ANGELES AND THOSE IN SMALLER ONES LIKE MONTREAL AND SAN DIEGO THE PRESSURE FOR AN AGREEMENT HAS INCREASED IN RECENT YEARS AS THE REVENUE GAP HAS WIDENED BIGMARKET TEAMS NOW GROSS 100 MILLION A YEAR WHILE SMALLMARKET TEAMS TAKE IN ONLY ABOUT 40 MILLION YET THEY'RE ALL TIED TO THE SAME SALARY SCALE UNDER WHICH THE AVERAGE PLAYER'S SALARY HAS ABOUT DOUBLED TO 1060000 IN THE PAST FIVE YEARS TOP FREE AGENTS LIKE WILL CLARK AND RAFAEL PALMEIRO HAVE NEGOTIATED 6MILLIONAYEAR CONTRACTS THIS WINTER ABOUT HALF OF THE TEAMS WERE UNPROFITABLE IN 1993 AND THE NUMBER OF TEAMS WITH LOSSES IS EXPECTED TO INCREASE IN 1994 AS BASEBALL'S NETWORK TV REVENUES DROP SHARPLY BASEBALL'S CONTRACTS WITH CBS AND ESPN WHICH PAID EACH TEAM 14 MILLION A YEAR EXPIRED AFTER 1993 THE NEW DEALS WITH ESPN ABC AND NBC MAY YIELD ONLY 7 MILLION AND PERHAPS CONSIDERABLY LESS IN BASEBALL'S JOINT VENTURE WITH ABC AND NBC ITS REVENUE IS TIED TO TV AD SALES WHICH ARE OFF TO A SPUTTERING START REACHING A REVENUESHARING AGREEMENT IS ALSO CRUCIAL TO GET NEGOTIATIONS MOVING ON A NEW LABOR CONTRACT WITH PLAYERS THE OLD ONE EXPIRED DEC 31 AND THE TWO SIDES HAVEN'T HELD TALKS ON A NEW DEAL IN NEARLY A YEAR THEY HAVEN'T EVEN YET COME TO TERMS ON A SIMPLER MATTER A NEW THREEDIVISION SYSTEM WITH AN EXTRA ROUND OF PLAYOFFS RICHARD RAVITCH THE OWNERS' CHIEF NEGOTIATOR WANTS TO PRESS THE UNION FOR A SALARY CAP BUT HE FIRST NEEDS TO SECURE A REVENUESHARING AGREEMENT AMONG THE OWNERS THAT'S BECAUSE ANY SALARY CAP WILL ENTAIL A SALARY FLOOR AND LOWBUDGET TEAMS WANT THE ASSURANCE OF A SUBSIDY TO MEET THE MINIMUM REQUIREMENT THEY ALSO WANT TO KEEP BIGMARKET TEAMS FROM REAPING WINDFALL PROFITS IF THEIR PAYROLLS ARE REDUCED BY THE CAP SO UNDER REVENUESHARING THE RICHEST CLUBS WOULD ESSENTIALLY TRANSFER FUNDS TO THE POOREST THE MINNESOTA TWINS IS ONE TEAM FEELING THE PINCH LETTING TOPFLIGHT CATCHER BRIAN HARPER GO BECAUSE IT COULDN'T AFFORD HIS SALARY AND KEEP ITS PAYROLL AT AROUND 27 MILLION NETWORK TV IS SUCH A HUGE PERCENTAGE OF OUR TOTAL INCOME COMPARED TO A MAJORMARKET TEAM SAYS JERRY BELL THE TWINS PRESIDENT THE TWINS HAVE BEEN IN THE FOREFRONT OF SMALLMARKET TEAMS PRESSING FOR REVENUESHARING WHILE NEW YORK YANKEES GENERAL PARTNER GEORGE STEINBRENNER HAS BEEN THE MOST VOCAL OF THE BIGMARKET OPPONENTS BASEBALL HAS MORE SMALL OR MEDIUMMARKET TEAMS THAN WELLHEELED ONES BUT REVENUESHARING NEEDS 75 APPROVAL 21 OF THE 28 TEAMS WHEN THE OWNERS LAST MET ON THE ISSUE IN AUGUST IN KOHLER WIS MR RAVITCH WASN'T ABLE TO GET THAT PLURALITY THE OWNERS SPLIT INTO TWO CAUCUSES 10 TEAMS IDENTIFIED WITH BIGMARKET INTERESTS AND 18 ON THE OTHER SIDE AFTER VIRTUALLY ROUNDTHECLOCK TALKS FOR TWO DAYS THE SIDES WERE ABOUT 11 MILLION APART AND THE SUMMIT BROKE UP THE SMALLMARKET CLUBS SOUGHT 65 MILLION THE BIGMARKET CLUBS OFFERED 54 MILLION A NEGOTIATING COMMITTEE WAS FORMED WITH REPRESENTATIVES FROM BOTH CAMPS IT HAS SINCE MET SEVERAL TIMES WITH BOSTON RED SOX GENERAL PARTNER JOHN HARRINGTON DOING MUCH OF THE TALKING FOR BIGMARKET OWNERS AND THE TWINS' MR BELL AND SEATTLE MARINERS CHAIRMAN JOHN ELLIS TAKING LEAD ROLES AMONG THE SMALLMARKET CLUBS RECENTLY THE TWO SIDES HAVE GOTTEN CLOSER ON SOME ISSUES SUCH AS SETTING A LIMIT ON HOW LONG RICH CLUBS WOULD SUBSIDIZE THE POOREST ONES BUT AN AGREEMENT WILL STILL BE ELUSIVE AT THE CHICAGO MEETING WHICH COULD SPILL OVER INTO A SECOND DAY THE PROBLEM ISN'T JUST THE AMOUNT OF MONEY SAYS AN OWNER IT'S PEOPLE'S DIFFERENT MOTIVATIONS THE NEW YORK METS' OWNERS FOR INSTANCE ARE CONSIDERED DOVES ON LABOR ISSUES BY BOTTLING UP REVENUESHARING THEY CAN KEEP MR RAVITCH FROM GETTING OUT OF THE GATE AND INTO A CONFRONTATIONAL STANCE WITH THE UNION IN ADDITION SOME BIGMARKET TEAMS RESIST REVENUESHARING MAINLY BECAUSE IT WOULD ERODE THEIR COMPETITIVE ADVANTAGE THE TORONTO BLUE JAYS WHO HAVE WON THE LAST TWO WORLD SERIES AND CARRY BASEBALL'S HIGHEST PAYROLL AVERAGING 17 MILLION A PLAYER ARE SAID TO FIT THAT CATEGORY TODAY'S MEETING IS THE PRODUCT OF A REBELLION BY THE NATIONAL LEAGUE'S SMALLMARKET TEAMS FIVE OF THEM MONTREAL SAN DIEGO PITTSBURGH HOUSTON AND FLORIDA REFUSED TO SIGN THE NATIONAL LEAGUE BROADCAST AGREEMENT FOR 1994 THAT PACT WHICH HAD BEEN RENEWED ROUTINELY FOR YEARS ESTABLISHES TEAMS' BROADCAST RIGHTS FROM ONE ANOTHER'S BALLPARKS WITHOUT IT A TEAM CAN'T TELEVISE ROAD GAMES EXCEPT BY NEGOTIATING TERMS WITH EACH TEAM THE SMALLMARKET OWNERS WANT TO FORCE A MORE GENEROUS SPLIT OF LOCAL TV REVENUE WHICH ACCOUNTS FOR MUCH OF THE DISPARITY OF FORTUNES AMONG TEAMS THE METS AND LOS ANGELES DODGERS HAVE THE HIGHEST LOCAL BROADCAST PACKAGES IN THE LEAGUE ESTIMATED AT 20 MILLION TO 25 MILLION WHILE THE PITTSBURGH PIRATES ARE AT THE LOW END WITH 6 MILLION THE TEAM THAT PLAYS THE TEAM WITH THE TV RIGHTS DEAL GETS 25 OF THE REVENUE FOR GAMES ON CABLE TV BUT NOTHING FOR OVERTHEAIR BROADCASTS WE'RE PART OF THE ACT PEOPLE COME TO SEE BOTH THE DODGERS AND THE PIRATES SAYS DOUGLAS DANFORTH THE PIRATES' MANAGING PARTNER WE THINK WE DESERVE A BETTER SHARE OF THE REVENUE THE STANDOFF MEANS NATIONAL LEAGUE TEAMS AND THEIR TV RIGHTSHOLDERS CAN'T PLAN THEIR 1994 BROADCAST SCHEDULES OR SECURE ADVERTISING COMMITMENTS NATIONAL LEAGUE PRESIDENT BILL WHITE SCHEDULED A MEETING OF HIS OWNERS IN MIDDECEMBER TO TRY TO RESOLVE THE BROADCAST AGREEMENT AMONG OTHER ITEMS BUT BUD SELIG BASEBALL'S DE FACTO COMMISSIONER AND THE MILWAUKEE BREWERS' OWNER WANTED THE MATTER ADDRESSED IN THE CONTEXT OF REVENUESHARING HE PREVAILED ON THE LEAGUE TO SCRAP ITS MEETING AND SET UP TODAY'S PARLEY 9401060160 940106 WHO'S NEWS ELECTRONIC ARTS INC ELECTRONIC ARTS INC SAN MATEO CALIF DANIEL H CASE III 36 YEARS OLD WAS APPOINTED TO THIS ENTERTAINMENT AND EDUCATION SOFTWARE CONCERN'S BOARD HE FILLS A SEAT LEFT VACANT BY BROOKE BYERS 48 WHO DIDN'T RUN FOR REELECTION 9401060159 940106 ECONOMY BOOM IS FADING IN REFINANCINGS ON MORTGAGES WEEKLY INDEX OF ACTIVITY REGISTERS A 65 DROP FROM SEPTEMBER PEAK BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL THE BOOM IN MORTGAGE REFINANCINGS WHICH SOARED TO RECORD LEVELS LAST YEAR WHEN INTEREST RATES PLUNGED TO THEIR LOWEST POINT IN A QUARTER OF A CENTURY HAS SLOWED SHARPLY A WEEKLY INDEX OF REFINANCING ACTIVITY FELL TO 604 FOR THE LAST WEEK OF 1993 TUMBLING 65 FROM ITS PEAK OF 17273 IN SEPTEMBER IT WAS THE LOWEST LEVEL SINCE JANUARY 1993 ACCORDING TO THE MORTGAGE BANKERS ASSOCIATION OF AMERICA WHICH PUBLISHES THE INDEX AND WILL RELEASE THE FIGURES TODAY A RATE OF 100 IS CONSIDERED NORMAL MOREOVER REFINANCING APPLICATIONS ARE NOW RUNNING AT 45 OF ALL MORTGAGE ORIGINATIONS DOWN FROM ABOUT 70 APPLICATIONS FOR LOANS ON NEWLY PURCHASED HOMES MAKE UP THE REMAINDER OF ORIGINATIONS WE'RE OVER THE EDGE IN SEEING A SHARP CONTRACTION IN REFINANCING SAID JONATHAN E GRAY AN ANALYST FOR SANFORD C BERNSTEIN & CO MR GRAY ESTIMATES THAT REFINANCINGS WHICH TOTALED 533 BILLION LAST YEAR WILL DROP BY 50 TO 266 BILLION THIS YEAR ASSUMING INTEREST RATES STAY FLAT MR GRAY SAID HE EXPECTS ANOTHER DROP OF 60 IN 1995 SOME OF THE DECLINE IN REFINANCINGS IS DUE TO THE TRADITIONAL YEAREND HOLIDAY SLOWDOWN SAID WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKERS ASSOCIATION EVEN THOUGH MOST PEOPLE WHO ARE THINKING ABOUT REFINANCING HAVE ALREADY DONE SO HE SAID THAT THE RECENT UPTICK IN INTEREST RATES STILL LOW BY HISTORICAL STANDARDS WILL ENTICE MANY OF THE REMAINING HOMEOWNERS INTO THE MARKET NEVERTHELESS ANALYSTS EXPECT THAT 1994 WILL RANK AS THE THIRDHIGHEST YEAR ON RECORD FOR REFINANCINGS BECAUSE MANY HOMEOWNERS ARE STILL SCRAMBLING TO LOCK IN RATES THAT ARE HOVERING AT THEIR LOWEST LEVELS IN TWO DECADES THIS WEEK THE AVERAGE RATE SHOT UP TO 735 FROM 724 ON A CONVENTIONAL 30YEAR MORTGAGE ACCORDING TO A PRELIMINARY SURVEY BY HSH ASSOCIATES A BUTLER NJ MORTGAGE PUBLISHER STILL THOSE RATES WOULD BE ATTRACTIVE TO THE 15 TO 20 OF HOMEOWNERS THAT ARE STILL CHAINED TO INTEREST RATES OF 95 OR HIGHER MR GRAY SAID REFINANCING ACTIVITY IS STILL WELL ABOVE THE HISTORIC AVERAGE SAID MR LASKO OF THE MORTGAGE BANKERS ASSOCIATION ADDING PEOPLE ARE STILL TAKING ADVANTAGE OF LOW RATES ANALYSTS EXPECT RATES TO STAY RELATIVELY STABLE FOR THE NEXT YEAR PERHAPS INCHING UP TO 8 RATES FELL AS LOW AS 683 IN OCTOBER BEFORE RISING TO 740 IN NOVEMBER THE EARLIER RATES THE LOWEST IN MEMORY FOR MANY HOMEOWNERS SET OFF A FURY OF REFINANCING ACTIVITY WITH SOME PEOPLE COMING BACK TO THEIR BROKERS TWO OR THREE TIMES REFINANCING BOOMS ROLLED IN LIKE WAVES LAST YEAR ACTIVITY TOOK OFF EARLY IN THE YEAR AND SOARED TO 14 TIMES THE NORMAL VOLUME BY MARCH REACHING A RECORD 17 TIMES BETTER THAN NORMAL LEVEL IN SEPTEMBER THIS REFINANCING BOOM ABSOLUTELY DWARFS ANYTHING THAT HAS EVER HAPPENED BEFORE IN THE LARGEST FINANCIAL MARKET IN THE WORLD SAID MR GRAY THE MORTGAGE BANKERS' INDEX TRACKS THE VOLUME OF HOMEOWNERS APPLYING TO REFINANCE FROM A BASE OF 100 WHICH IS CONSIDERED NORMAL ANYTHING OVER 700 IS CONSIDERED A BOOM WITH SUCH A PRECIPITOUS FALL ANALYSTS SAY A PRICE WAR AMONG MORTGAGE BANKERS IS LIKELY SUCH A FIREFIGHT BROKE OUT BETWEEN 1986 AND 1987 AND PUT AN ESTIMATED ONETHIRD OF MORTGAGE BROKERS OUT OF BUSINESS IT'S ALREADY BECOME EXTREMELY COMPETITIVE SAID THOMAS R HENDRICKSON EXECUTIVE VICE PRESIDENT AT PORTLAND MORTGAGE CO HE SAID THAT IN PORTLAND MORE THAN 100 NEW LENDERS HAVE HIT TOWN IN THE LAST THREE YEARS IN A WAY IT'S A TIME BOMB FOR THE WHOLE BUSINESS THERE'S JUST AN AWFUL LOT OF PEOPLE WHO DON'T KNOW WHAT THEY'RE DOING NOW THE SWELL OF REFINANCING ANALYSTS SAY HAS HELPED THE AVERAGE HOMEOWNER SHAVE 240 OFF OF MONTHLY PAYMENTS EASING PERSONAL DEBT AND CONTRIBUTING TO A SPURT IN CONSUMER CONFIDENCE AND SPENDING LENDERS REPORT THAT INCREASINGLY THEY ARE DEALING WITH PEOPLE REFINANCING FOR THE FIRST TIME HOMEOWNERS THAT HAVE HELD OFF UNTIL NOW IN THE HOPE THAT RATES WOULD DROP EVEN LOWER LENDERS ALSO SAY THEY ARE SEEING MORE PEOPLE BUYING HOMES WHILE NEW MORTGAGES INCREASINGLY OUTPACE REFINANCED MORTGAGES THE TOTAL VOLUME HAS FALLEN SIGNIFICANTLY THE MORTGAGE BANKERS ASSOCIATION'S SEASONALLY ADJUSTED PURCHASE INDEX OF NEW MORTGAGES DROPPED 23 TO 1412 IN THE LAST WEEK OF 1993 FROM THE SEPTEMBER PEAK OF 1821 ANYTHING HIGHER THAN 150 IS CONSIDERED A BOOM MR LASKO SAYS HE IS PUZZLED BY THE DROP AND EXPECTS A SURGE IN HOME BUYING THIS QUARTER I'M LEERY OF USING THIS INDEX TO SAY THAT THE BOOM IN HOME SALES IS OVER HE SAID IT ISN'T 9401060158 940106 WHO'S NEWS AURTEX INC AURTEX INC SAN FRANCISCO TREVOR S SCHULTZ 50 YEARS OLD WAS NAMED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS GOLDEXPLORATION CONCERN MR SCHULTZ WAS GROUP GENERAL MANAGER AND SENIOR VICE PRESIDENT OF A BROKEN HILL PROPRIETARY CO MINERALS UNIT AS PRESIDENT AND CEO HE SUCCEEDS ALLAN KLINE 73 WHO REMAINS CHAIRMAN MR SCHULTZ'S APPOINTMENT AS DIRECTOR EXPANDS THE BOARD TO SIX MEMBERS 9401060157 940106 INTERNATIONAL FLAVORS IN CHINA NEW YORK INTERNATIONAL FLAVORS & FRAGRANCES INC SAID IT FORMED A 20 MILLION VENTURE WITH A CHINESE FRAGRANCEINGREDIENT MANUFACTURER INTERNATIONAL FLAVORS & FRAGRANCES SAID IT OWNS 80 OF THE VENTURE WITH HANGZHOU XIN'ANJIANG PERFUMERY LOCATED IN ZHEJIANG PROVINCE 200 MILES SOUTHWEST OF SHANGHAI THE VENTURE CALLED IFF HANGZHOU WILL MAKE INGREDIENTS USED IN FRAGRANCES FOR PERFUME COSMETICS SOAP AND HOUSEHOLD PRODUCTS THE VENTURE IS INTERNATIONAL FLAVORS' THIRD IN CHINA 9401060156 940106 UKRAINE TAKES WARHEADS FROM NUCLEAR MISSILES WASHINGTON AS A GOODWILL GESTURE TOWARD THE US TECHNICIANS IN UKRAINE HAVE BEGUN REMOVING THE NUCLEAR WARHEADS FROM THE SS24 THE COUNTRY'S MOST MODERN AND POTENT MISSILE THE MOVE WHICH HAS BEEN VERIFIED BY US SATELLITES IS A BEGINNING STEP TOWARD UKRAINE'S TREATY OBLIGATION TO DISMANTLE ITS MISSILES DESTROY THE SILOS AND SEND THE WARHEADS BACK TO RUSSIA WE REGARD THIS AS VERY GOOD NEWS A US OFFICIAL SAID ADDING THAT THE REMOVAL WAS BEING CARRIED OUT JOINTLY BY RUSSIAN AND UKRAINIAN CREWS THE ACTION FOLLOWED A CAMPAIGN BY US EXPERTS TO CONVINCE UKRAINIAN LEADERS THAT THEY HAVE NEITHER THE NEED NOR THE RESOURCES TO MAINTAIN A NUCLEAR ARSENAL THEY POINTED OUT THAT THE MISSILES WHICH CARRY SIX WARHEADS HAVE A MINIMUM RANGE OF AROUND 1700 MILES WHICH MAKES THEM EFFECTIVE FOR HITTING WASHINGTON BUT VERY DIFFICULT TO AIM AT MOSCOW WHICH IS 1100 MILES FROM UKRAINE'S MISSILE FIELDS THE WARHEADS ARE LIKELY TO REMAIN IN UKRAINE UNDER SEPARATE STORAGE FROM THE MISSILES UNTIL THE US NEGOTIATES A CONTRACT WITH RUSSIA TO BUY THE ENRICHED URANIUM FROM THE WARHEADS AND PAY THE PROCEEDS TO UKRAINE 9401060155 940106 NORD RESOURCES EXPANSION DAYTON OHIO NORD RESOURCES CORP SAID IT PLANS A 72 MILLION EXPANSION OF ITS WEST AFRICAN MINING OPERATION OVER THE NEXT FIVE YEARS THE OPERATION IS RUN BY SIERRA RUTILE LTD A COMPANY 50 OWNED BY CONSOLIDATED RUTILE LTD OF AUSTRALIA NORD SAID FINANCING FOR THE EXPANSION WILL COME FROM THE BALANCE OF A 48 MILLION DEVELOPMENT BANKS' LOAN FACILITY AND CASH FLOW GENERATED BY SIERRA RUTILE NORD PRODUCES NATURAL RUTILE A PREMIUM TITANIUM DIOXIDE MINERAL KAOLIN AND PERLITE AND OWNS A MAJOR INTEREST IN NORD PACIFIC LTD AN EXPLORATION COMPANY 9401060154 940106 WHO'S NEWS MCDONALD'S CORP MCDONALD'S CORP OAK BROOK ILL HENRY E GONZALEZ JR 43 YEARS OLD WAS NAMED CORPORATE VICE PRESIDENTOPERATIONS IN CHARGE OF ALL CORPORATE OPERATIONS AND TRAINING DEPARTMENTS IN THE US MR GONZALEZ THE FASTFOOD CHAIN'S ONLY CORPORATE VICE PRESIDENT AND ITS HIGHESTRANKING HISPANIC WILL BECOME A MEMBER OF MCDONALD'S SENIOR MANAGEMENT TEAM A 20YEAR COMPANY VETERAN HE HAS BEEN A REGIONAL VICE PRESIDENT OVERSEEING RESTAURANTS IN THE HARTFORD CONN REGION IN THAT CAPACITY HE LED MCDONALD'S CURRENT TEST OF HOME DELIVERY 9401060153 940106 WHO'S NEWS DIED FRANCIS E FERGUSON 72 RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NORTHWESTERN MUTUAL LIFE INSURANCE CO TUESDAY IN PHOENIX AFTER A LONG RESPIRATORY ILLNESS 9401060152 940106 WHO'S NEWS UNIVERSAL SEISMIC ASSOCIATES INC UNIVERSAL SEISMIC ASSOCIATES INC SUGAR LAND TEXAS RONALD L ENGLAND CONTROLLER WAS NAMED CHIEF FINANCIAL OFFICER OF THIS COMPANY WHICH PROVIDES SEISMIC DATA TO THE ENERGY INDUSTRY MR ENGLAND 36 YEARS OLD SUCCEEDS CALVIN G COBB 38 WHO SERVED AS INTERIM CHIEF FINANCIAL OFFICER AND WILL REMAIN A DIRECTOR THE COMPANY ALSO ELECTED TWO NEW OUTSIDE DIRECTORS EXPANDING THE BOARD TO FIVE MEMBERS THE NEW DIRECTORS ARE MATTHEW R BOB 37 CHIEF GEOPHYSICIST FOR PITTS GROUP AND ALFRED D LASAINE 55 AN INDEPENDENT ENERGY AND GEOPHYSICAL CONSULTANT 9401060151 940106 TECHNOLOGY MAGIC CAP SYSTEM IS EXPECTED TO GIVE USERS OF HANDHELD PCS AN EASIER TIME BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL THE WORLD'S LARGEST CONSUMERELECTRONICS COMPANIES ARE BETTING THAT THE MAGIC CAP OPERATING SYSTEM WILL DO FOR PERSONAL INTELLIGENT COMMUNICATORS WHAT THE MACINTOSH OPERATING SYSTEM DID FOR PERSONAL COMPUTERS MAKE THEM EASY AND FUN TO USE SONY CORP PHILIPS ELECTRONICS NV AND MATSUSHITA ELECTRIC INDUSTRIAL CO'S PANASONIC DIVISION ALONG WITH MOTOROLA INC ARE DEVELOPING HANDHELD DEVICES USING GENERAL MAGIC'S OPERATING SYSTEM SONY AND MOTOROLA EXPECT TO SHIP PERSONAL INTELLIGENT COMMUNICATORS PICS THIS SUMMER ABOUT THE TIME THAT AT&T'S PERSONALINK NETWORK SERVICE OPENS FOR BUSINESS PHILIPS AND PANASONIC ARE EXPECTED TO SHIP THEIR PRODUCTS LATE THIS YEAR OR EARLY NEXT PREVIOUSLY INTRODUCED PICS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO'S EO AND APPLE COMPUTER INC'S NEWTON HAVE BEEN CRITICIZED FOR BEING CLUNKY AND DIFFICULT TO USE THE NEWTON FOR INSTANCE HAS A FLAWED HANDWRITING RECOGNITION SYSTEM THAT MAKES DATA ENTRY A PERILOUS TASK AND COMMUNICATIONS CAPABILITY WAS OBVIOUSLY AN AFTERTHOUGHT IT CAN'T COMMUNICATE WITHOUT COSTLY EXTRA GEAR TO LINK IT TO A TELEPHONE LINE BUT THE MAGIC CAP OPERATING SYSTEM WAS DESIGNED PRETTY MUCH BY THE SAME TEAM THAT BUILT THE LOOK AND FEEL OF THE MAC OPERATING SYSTEM INCLUDING THE LEADERS OF THE MAC EFFORT ANDY HERTZFELD AND BILL ATKINSON THE KEY DESIGNERS ARE REALLY THE INTERFACE NINJAS OF OUR TIME OBSERVES STEVE LEVY AUTHOR OF A HISTORY OF THE MACINTOSH THIS IS DEFINITELY THE A TEAM LIKE THE MAC INTERFACE MAGIC CAP IS A BREAKTHROUGH IN THE SENSE THAT USING IT SEEMS NATURAL INTUITIVE AND EVEN WHIMSICAL UNLIKE THE MAC THE SYSTEM IS FOCUSED ALMOST ENTIRELY ON COMMUNICATION ATTEMPTING TO MAKE IT FAST EASY AND SEMIAUTOMATIC MAGIC CAP IS ALMOST ENTIRELY GRAPHICAL MEANING USERS ACCESS MESSAGE FORMS DRAWING TOOLS NAMES PHONE NUMBERS AND SIMILAR DEVICES BY TAPPING ICONS WITH A STYLUS IT TRIES TO REPLICATE THE PHYSICAL WORLD OF THE USER WITH THREE SCREENS SHOWING A DESK THE ROOMS IN A HALLWAY AND A DOWNTOWN POPULATED WITH THE BUSINESSES AND SERVICES THE USER WANTS TO FREQUENT IF A USER WANTS TO SEND A MESSAGE TO A COLLEAGUE HE CAN TAP A POSTCARD LAYING ON THE DESK THAT BRINGS UP THE POSTCARD PLUS A DIRECTORY OF NAMES WITH PHONE FAX OR EMAIL NUMBERS THE USER CAN WRITE A MESSAGE AND TAP A FEW MORE TIMES TO SEND IT OFF WIRELESSLY IN THE CASE OF MOTOROLA'S PIC AND VIA TELEPHONE MODEM IN SONY'S ANOTHER TAP CAN BRING UP A HALLWAY FULL OF ROOMS WITH SPECIFIC FUNCTIONS SUCH AS A LIBRARY FOR NEWS SERVICES OR A GAME ROOM FOR VIDEO GAMES A FEW MORE TAPS BRING THE SERVICES ONLINE TAPPING THE BUILDING ICONS ON THE DOWNTOWN SCREEN BRINGS UP THE PHONE NUMBERS OF SERVICES SUCH AS A RECORD STORE BROKERAGE OR BANK PURVEYORS OF THESE SERVICES AND INDEPENDENT SOFTWARE DEVELOPERS CAN PROVIDE SOFTWARE MODULES THAT ACTUALLY CREATE THE BUILDING ICONS IN THE USER'S DOWNTOWN AND ALLOW THE USER TO SEND ELECTRONIC AGENTS TO THESE STORES TO BUY THINGS SUCH AS TICKETS OR ALERT HIM TO THE ARRIVAL OF ORDERED GOODS IN FACT DEVELOPERS CAN BUILD NEW PROGRAMS AROUND EVERY FUNCTION ON MAGIC CAP LINKING THEM TO MODULES OR OBJECTS EMBEDDED IN THE SYSTEM THE OBJECTS CAN BE USED FOR EXAMPLE TO ADD ANIMATED CARTOONS OR BITS OF SONGS TO MESSAGES MAGIC CAP WILL INITALLY WORK BETTER ON PERSONAL COMPUTERS THAN ON PICS BECAUSE HANDHELD DEVICES WILL BE UNDERPOWERED FOR A WHILE INDUSTRY EXECUTIVES WHO HAVE TESTED MAGIC CAP ARE HIGH ON THE SYSTEM BUT SAY IT WILL PROBABLY BE ATTACKED BY COMPUTER SOPHISTICATES FOR BEING TOO CUTESY OR TOYLIKE AS THE MAC INITIALLY WAS BUT ROB MECHALEY SENIOR VICE PRESIDENT FOR MCCAW CELLULAR COMMUNICATIONS INC'S WIRELESS DATA DIVISION SAYS MAGIC CAP IS FASCINATING ADDING THAT INDUSTRY EXPERTS HAVE VOIDED THEMSELVES OF EMOTION AND SENTIMENT SOMETHING MORE GAMELIKE AND PLAYFUL IS DEFINITELY MORE CAPTIVATING FOR THE NOVICE MATT KURSH PRESIDENT OF ESHOP INC A SAN MATEO CALIF COMPANY THAT HAS DEVELOPED SOFTWARE THAT GIVES MAGIC CAP USERS VIRTUAL TOURS OF STORES SAYS THE OPERATING SYSTEM WILL REALLY SHINE ON HANDHELD DEVICES AS MORE POWERFUL PROCESSORS MEMORY DEVICES AND SCREENS BECOME AVAILABLE OVER THE NEXT TWO YEARS THEN SOME PHENOMENAL THINGS ARE GOING TO HAPPEN HE SAYS CURIOUSLY MAGIC CAP'S SUCCESS WOULD HURT TWO OF GENERAL MAGIC'S BIGGEST BACKERS AT&T AND APPLE SAY THEY ARE STICKING WITH THE OPERATING SYSTEMS THEY DEVELOPED FOR THEIR EXISTING PERSONAL COMMUNICATORS 9401060150 940106 AMR'S AMERICAN AIRLINES TRAFFIC FORT WORTH TEXAS AMERICAN AIRLINES A UNIT OF AMR CORP REPORTED THAT DECEMBER TRAFFIC FELL 38 FROM A YEAR EARLIER THE CARRIER FLEW 77 BILLION REVENUE PASSENGER MILES DOWN FROM DECEMBER 1992'S EIGHT BILLION MILES A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED FELL SLIGHTLY TO 588 FROM 599 FOR THE YEAR TRAFFIC DECLINED 03 TO 971 BILLION REVENUE PASSENGER MILES FROM 974 BILLION IN 1992 LOAD FACTOR DECLINED TO 604 FROM 637 9401060149 940106 PETROLEUM GEOSERVICES ACCORD HOUSTON PETROLEUM GEOSERVICES A/S AND CLOSELY HELD EDISON CHOUEST OFFSHORE INC SAID THEY AGREED TO BUY A SEISMIC VESSEL FROM SHELL OFFSHORE INC FOR ABOUT 20 MILLION THE COMPANIES SAID THEY WILL OPERATE THE VESSEL AND PROVIDE SEISMIC SERVICES TO SHELL A SUBSIDIARY OF ROYAL DUTCH/SHELL GROUP 9401060148 940106 WHO'S NEWS BRANDON SYSTEMS CORP BRANDON SYSTEMS CORP SECAUCUS NJ PATRICIA KENNEDY 38 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF BRANCH OPERATIONS AT THIS COMPUTER AND TELECOMMUNICATIONS PROVIDER SHE WAS A CORPORATE VICE PRESIDENT OF BRANCH OPERATIONS ALSO PETER LORDI WAS NAMED TO THE ADDITIONAL POST OF SENIOR VICE PRESIDENT OF FINANCE AND ADMINISTRATION MR LORDI 50 IS TREASURER AND A DIRECTOR 9401060147 940106 INTERNATIONAL GAMSAKHURDIA DEPOSED PRESIDENT OF GEORGIA IS REPORTED TO BE DEAD BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW GEORGIA'S DEPOSED PRESIDENT ZVIAD GAMSAKHURDIA EITHER KILLED HIMSELF IN A GEORGIAN VILLAGE BESIEGED BY HIS FOES OR DIED IN A SKIRMISH JUST NORTH OF THE GEORGIAN BORDER ACCORDING TO REPORTS FROM GEORGIA YESTERDAY THE REPORTS CARRIED BY RUSSIAN AND GEORGIAN NEWS AGENCIES HAVE YET TO BE CONFIRMED IN THE VIOLENT FEUDING WORLD OF GEORGIAN POLITICS MR GAMSAKHURDIA PLAYED MANY PARTS AND SOME OBSERVERS AREN'T EVEN PERSUADED THAT HE IS DEAD AFTER BEING OVERTHROWN IN A BLOODY COUP TWO YEARS AGO MR GAMSAKHURDIA STUCK BY HIS CLAIM THAT HE NOT PRESIDENT EDUARD SHEVARDNADZE WAS THE LEGITIMATE LEADER OF GEORGIA LAST FALL MR GAMSAKHURDIA LAUNCHED A CIVIL WAR IN WHICH HIS LOYALISTS SEIZED MUCH OF WESTERN GEORGIA BEFORE THEY WERE LARGELY PUSHED BACK BY TROOPS FIGHTING FOR MR SHEVARDNADZE'S GOVERNMENT THE REPORT THAT MR GAMSAKHURDIA HAD KILLED HIMSELF CAME FROM MR GAMSAKHURDIA'S WIFE MANANA WHO SAID SHE HAD LEARNED OF HER HUSBAND'S DEATH FIVE DAYS AFTER IT HAPPENED MRS GAMSAKHURDIA TOLD RUSSIA'S ITARTASS NEWS SERVICE THAT GEORGIAN AUTHORITIES ARE AWARE OF GAMSAKHURDIA'S DEATH BUT HAVE CAREFULLY CONCEALED THE FACT TO THIS DAY MRS GAMSAKHURDIA WAS SPEAKING FROM GROZNY CAPITAL OF THE SECESSIONIST RUSSIAN REPUBLIC OF CHECHENYA JUST NORTH OF GEORGIA CHECHEN PRESIDENT DZHOKAR DUDAYEV HAS PROVIDED A HAVEN IN GROZNY FOR MR GAMSAKHURDIA AND HIS FAMILY SINCE THEY FLED THE GEORGIAN CAPITAL OF TBILISI A PURPORTED SUICIDE NOTE RELEASED BY THE PRESS SERVICE OF CHECHENYA'S PRESIDENT DUDAYEV AND TRANSLATED BY ITARTASS HAS MR GAMSAKHURDIA WRITING IN ODDLY PEDANTIC PROSE BEING IN CLEAR CONSCIENCE I COMMIT THIS ACT IN TOKEN OF PROTEST AGAINST THE RULING REGIME IN GEORGIA AND BECAUSE I AM DEPRIVED OF THE POSSIBILITY ACTING AS THE PRESIDENT TO NORMALIZE THE SITUATION TO RESTORE LAW AND ORDER GEORGIAN INTERIOR MINISTER SHOTA KVIRAYA LATER IN THE DAY TOLD ITARTASS THAT HIS MINISTRY HAS INFORMATION ABOUT ZVIAD GAMSAKHURDIA'S SUICIDE AND IS NOW DOUBLECHECKING IT STILL LATER THE GEORGIAN PRESS AGENCY GIA WEIGHED IN IT REPORTED THAT ACCORDING TO THE PRESS SERVICE OF THE MKHEDRIONI ONE OF GEORGIA'S STRONGEST PARAMILITARY GROUPS MR GAMSAKHURDIA HAD BEEN WOUNDED IN A SKIRMISH DEC 31 ON CHECHEN TERRITORY AND HAD DIED YESTERDAY IN GROZNY CAMPAIGNED FOR INDEPENDENCE IF THE 54YEAROLD MR GAMSAKHURDIA IS DEAD HIS DEATH CLOSES A MANIC CHAPTER IN RECENT GEORGIAN HISTORY A DISSIDENT WHO SERVED TIME IN PRISON UNDER SOVIET RULE HE LED GEORGIA'S CAMPAIGN FOR INDEPENDENCE AND IN MAY 1991 WAS ELECTED PRESIDENT WITHIN MONTHS HOWEVER MR GAMSAKHURDIA TURNED OUT TO BE AN EXTREME NATIONALIST INTOLERANT OF DISSENT EXALTING THE PURITY AND GRAND DESTINY OF THE GEORGIAN RACE AND ALSO TRYING TO HOLD TOGETHER A COUNTRY ALREADY FRACTURING AMONG VARIOUS WARLORDS MR GAMSAKHURDIA WAS RUN OUT OF OFFICE IN JANUARY 1992 HIS DEATH COULD MEAN THE END OF AN ARMED REBELLION AIMED AT REPLACING THE GOVERNMENT OF MR SHEVARDNADZE A GEORGIAN WHO SERVED AS SOVIET FOREIGN MINISTER UNDER MIKHAIL GORBACHEV BUT MR GAMSAKHURDIA'S DEMISE WOULD HARDLY SPELL THE END OF FIGHTING IN GEORGIA THE COUNTRY'S REGULAR ARMY AMOUNTS AT BEST TO A FEW THOUSAND MEN FAR STRONGER ARE THE VARIOUS PARAMILITARY GROUPS WHO SUPPORT MR SHEVARDNADZE BUT THAT ALSO RUN AN ARRAY OF RACKETS ROBBERY EXTORTION AND MURDER ARE RAMPANT GEORGIA LOST ITS NORTHWESTERN PROVINCE OF ABKHAZIA TO ARMED SEPARATISTS LAST SEPTEMBER AND MR SHEVARDNADZE HAS VOWED TO TAKE IT BACK THE PAST TWO YEARS HAVE ALSO SEEN SEPARATIST FIGHTING IN THE NORTHERN GEORGIAN PROVINCE OF SOUTH OSSETIA WHICH REMAINS RESTIVE ANALYSTS IN TBILISI WARN THAT THE SOUTHWESTERN PROVINCE OF ADJARIA BORDERING TURKEY IS ALSO RIPE FOR SEPARATIST REBELLION MANY GEORGIANS LEERY THAT RUSSIA MIGHT TRY TO REVIVE THE OLD SOVIET EMPIRE OPPOSE MR SHEVARDNADZE'S DECISION FOR GEORGIA TO JOIN THE COMMONWEALTH OF INDEPENDENT STATES AGGRAVATING ALL THESE TROUBLES IS AN UNREFORMED ECONOMY GEORGIA CUT OFF FROM ITS FORMER SOVIET UNION SUBSIDIES HAS BECOME ONE OF THE MOST DESTITUTE AMONG THE FORMER SOVIET REPUBLICS INFLATION HAS REDUCED THE GEORGIAN CURRENCY THE COUPON TO ABOUT ONETWENTIETH OF ITS VALUE SINCE LAST SPRING THE GOVERNMENT RECENTLY HAS BEEN POSTING MILITIA AROUND BAKERIES IN TBILISI TO STOP PEOPLE FROM STORMING THEM FOR BREAD 9401060145 940106 BORDEN STOCK DIVES ON PLAN TO RESTRUCTURE BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BORDEN INC'S STOCK WAS BATTERED YESTERDAY AS INVESTORS EXPRESSED DISAPPOINTMENT WITH THE BELEAGUERED COMPANY'S NEW RESTRUCTURING PLAN AS EXPECTED BORDEN'S LONGAWAITED PLAN CALLS FOR THE SALE OF THE COMPANY'S NORTH AMERICAN SNACKS BUSINESS AND WILL RESULT IN A 650 MILLION CHARGE AGAINST FOURTHQUARTER EARNINGS BORDEN IS ALSO PUTTING ON THE BLOCK ITS TWO SMALLER SEAFOOD AND JAMS AND JELLIES BUSINESSES WHICH TOGETHER WITH SNACKS GENERATED 125 BILLION OR NEARLY 20 OF THE FOOD AND CHEMICAL COMPANY'S ESTIMATED 1993 SALES OF 675 BILLION AFTER HALVING ITS DIVIDEND SIX MONTHS AGO BORDEN YESTERDAY AGAIN SLASHED ITS ANNUAL DIVIDEND IN HALF THIS TIME TO 30 CENTS A SHARE IN A MEETING WITH ANALYSTS NEWLY APPOINTED CHIEF EXECUTIVE OFFICER ERVIN R SHAMES SAID THE DIVESTITURES WOULD HELP BORDEN REFOCUS ON ITS STRENGTHS PARTICULARLY IN THE PASTA AND NICHE GROCERY BUSINESSES WE WANT BORDEN TO BE THE ACKNOWLEDGED LEADER WITHIN THE FOOD INDUSTRY HE SAID BUT THE PLAN WHICH HAD BEEN IN THE WORKS FOR MONTHS FELL FAR SHORT OF WHAT MANY INVESTORS HAD BEEN HOPING FOR BORDEN'S SHARES TUMBLED 13 CLOSING AT 15875 A SHARE DOWN 2375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MANY INVESTORS HAD SPECULATED THAT BORDEN WOULD SELL LARGE CHUNKS OF ITS FLAGGING EMPIRE SUCH AS ITS TROUBLED DAIRY BUSINESS AND SOME HAD SNAPPED UP ITS STOCK IN HOPES THAT THE COMPANY WOULD BE SOLD TO A DEEPPOCKETED FOREIGN BUYER THE PLAN IS A BIG DUD SAID WILLIAM LEACH AN ANALYST AT DONALDSON LUFKIN & JENRETTE I DON'T SEE IT SOLVING ANY OF THEIR PROBLEMS ADDED GOLDMAN SACHS & CO'S NOMI GHEZ MANY PEOPLE ARE DISAPPOINTED BY THE FACT THAT THE RESTRUCTURING SEEMS TO BE SOMEWHAT TIMID IN SCALE BUT WHAT TROUBLED SOME ANALYSTS MORE WAS BORDEN'S FINANCIAL PROJECTIONS BORDEN SAID IT ANTICIPATES A LOSS OF A FEW CENTS A SHARE IN THE FOURTH QUARTER EXCLUDING THE BIG RESTRUCTURING CHARGE BUT INCLUDING A SMALL GAIN FROM THE SALE OF AN ASSET IN ITS CHEMICAL BUSINESS INCLUDING THE 650 MILLION CHARGE BORDEN SAID IT EXPECTS TO REPORT A LOSS OF 590 MILLION TO 600 MILLION FOR THE YEAR THE COMPANY SAID THE FIRST QUARTER OF 1994 WILL BE MARGINALLY PROFITABLE AND SAID FULLYEAR PERSHARE EARNINGS SHOULD BE AT THE UPPER END OF THE 75 CENTS TO 1 RANGE WHILE BORDEN IS PREDICTING SALES AND EARNINGS GROWTH BY 1995 MANY BORDEN WATCHERS ARE SKEPTICAL NOTING THAT THIS IS THE COMPANY'S THIRD RESTRUCTURING EFFORT IN FOUR YEARS EVERY TIME BORDEN MAKES AN ANNOUNCEMENT THEY SAY BY THE WAY THE CURRENT QUARTER IS TERRIBLE BUT THINGS ARE ABOUT TO GET BETTER' SAID MR LEACH STILL WHILE SOME INSTITUTIONAL INVESTORS AND ANALYSTS HAVE CHARACTERIZED BORDEN'S PLAN AS INADEQUATE OTHERS SAY THE COMPANY HAD FEW ALTERNATIVES GIVEN THE STATE OF ITS BUSINESSES AND ITS BALANCE SHEET WITH A PORTFOLIO OF TROUBLED FOOD BRANDS AND MORE THAN 2 BILLION IN DEBT BORDEN COULDN'T AFFORD TO LOSE THE CASH FLOW GENERATED BY ITS HEALTHIER CHEMICAL BUSINESS THEY SAY THE COMPANY ALSO COULDN'T AFFORD TO SELL ITS UNPROFITABLE DAIRY BUSINESS AND TAKE ANOTHER CHARGE SMART COMPANIES DO THINGS SEQUENTIALLY SAYS GARY STIBEL OF NEW ENGLAND CONSULTING GROUP OTHERWISE YOU LITERALLY OPEN THE DOORS UP FOR A FIRE SALE AND THAT'S RARELY A SMART COURSE OF ACTION INDEED SOME PEOPLE CLOSE TO THE COMPANY SAY THE SALE OF BORDEN'S CHEMICAL OR DAIRY BUSINESSES MAY BE CONSIDERED AS EARLY AS THIS YEAR IF THINGS START TO TURN AROUND YOU DON'T DUMP A BUSINESS WHEN YOU KNOW ITS PROBLEMS ARE CORRECTABLE SAID A FOOD INDUSTRY EXECUTIVE EXECUTIVES AT BIG FOOD COMPANIES SOME OF WHICH HAD BEEN HOPING TO SNAG A BARGAIN SUGGEST THAT BORDEN SHOULDN'T EXPECT TO SELL ITS SNACK FOOD BUSINESS WHICH IS MADE UP OF SUCH REGIONAL BRANDS AS WISE AND JAYS FOR TOP DOLLAR ANALYSTS SAID THE COMPANY EXPECTS ITS PLANNED DIVESTITURES TO GENERATE NO MORE THAN 350 MILLION IN THE 52 WEEKS ENDED DEC 5 1993 DOLLAR SALES IN THE CHIPS AND SNACKS CATEGORY INCREASED 28 BUT SALES OF BORDEN'S BRANDS SANK 13 TO 2188 MILLION ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE INDEED BORDEN'S SNACK FOOD BUSINESS WOULD BE A REAL CHALLENGE FOR ITS BUYER SAYS ONE FOOD EXECUTIVE YOU BUY IT AND YOU GET TO GO TOETOTOE WITH INDUSTRY LEADER FRITOLAY CO WHILE SOME INDUSTRY EXECUTIVES HAVE SPECULATED THAT UNITED BISCUITS HOLDINGS PLC'S KEEBLER CO UNIT WOULD BE INTERESTED IN BORDEN'S SNACK FOOD BRANDS THE COMPANY SAYS THERE'S NO KEEBLER INTEREST IN THAT BUSINESS AT THIS TIME AS FOR FRITOLAY A UNIT OF PEPSICO INC THE COMPANY WILL SEE WHAT THEY HAVE TO OFFER SAID A SPOKESMAN BUT AT THIS POINT IT IS PURELY SPECULATIVE IN ADDITION TO THE DIVESTITURES BORDEN SAID IT PLANS COST REDUCTIONS THAT SHOULD REACH AN ANNUALIZED RATE OF 70 MILLION TO 80 MILLION BY YEAR END AND 100 MILLION TO 125 MILLION BY THE END OF 1995 AS PART OF THE PLAN MR SHAMES ALSO UNVEILED NEW STRATEGIES TO TRY TO TURN AROUND BORDEN'S DAIRY OPERATIONS AND FOCUS ON ITS PASTA BUSINESS WHICH IS FIGHTING TO KEEP ITS NO 1 POSITION HE SAID 1994 ADVERTISING SPENDING FOR THE PASTA BUSINESS WILL INCREASE TO 8 MILLION FROM 2 MILLION TO 3 MILLION HE ALSO STRESSED THE GROWTH POTENTIAL OF SOME WELLKNOWN BRANDS IN BORDEN'S NICHE GROCERY BUSINESS INCLUDING CRACKER JACK REALEMON LEMON JUICE EAGLE BRAND CONDENSED MILK AND WYLER'S BOUILLON WHAT'S SO STRIKING TO ME IS THE EXTENT TO WHICH THIS COMPANY HASN'T BEEN ABLE TO GET PEOPLE TO UNDERSTAND THE NUMBER OF GOOD BUSINESSES IT HAS MR SHAMES SAID IN AN INTERVIEW THIS BUSINESS IS IN A LOT BETTER SHAPE THAN A LOT OF OTHER COMPANIES MR SHAMES SAID 490 MILLION OF THE 650 MILLION FOURTHQUARTER CHARGE IS RELATED TO BUSINESS DIVESTITURES WHILE ANOTHER 77 MILLION IS NEEDED FOR ORGANIZATIONAL RESTRUCTURING AND 83 MILLION FOR ACCOUNTING CHANGES HE ADDED CASH FLOW IN 1994 IS EXPECTED TO REACH 400 MILLION TO 450 MILLION MOST OF WHICH WOULD BE APPLIED TO DEBT REPAYMENT 9401060144 940106 WHO'S NEWS CAPITAL CITIES/ABC INC CAPITAL CITIES/ABC INC NEW YORK KRISTIN GERLACH WAS NAMED VICE PRESIDENT BROADCASTING LEGAL SHE SUCCEEDS CHARLES STANFORD WHO ASSUMES THE NEW POST OF VICE PRESIDENT PRODUCTION AND MULTIMEDIA LEGAL MS GERLACH WAS PREVIOUSLY SENIOR GENERAL ATTORNEY LAW AND REGULATION AT THIS BROADCASTING CONCERN 9401060142 940106 INTERNATIONAL VW AGREES NOT TO RECRUIT MORE WORKERS FROM GM BONN IN AN OTHERWISE INCONCLUSIVE COURT SESSION VOLKSWAGEN AG FORMALLY AGREED YESTERDAY NOT TO HIRE ANY MORE EMPLOYEES AWAY FROM GENERAL MOTORS CORP'S PURCHASING DIVISION A FRANKFURT JUDGE ADJOURNED COURT UNTIL FEB 2 WHEN HE WILL ANNOUNCE A DECISION IN THE CIVIL CASE INCLUDING A POSSIBLE EMPLOYMENT BAN ON SEVEN FORMER GM MANAGERS WHO FOLLOWED J IGNACIO LOPEZ DE ARRIORTUA TO VW THE COURT PROCEEDINGS ARE A LEGAL SIDESHOW TO THE ALLEGATIONS OF INDUSTRIAL ESPIONAGE HANGING OVER MR LOPEZ AND HIS FOLLOWERS AND HAVE NO DIRECT EFFECT ON THE CRIMINAL INVESTIGATIONS BEING CONDUCTED BY GERMAN PUBLIC PROSECUTORS AND THE US JUSTICE DEPARTMENT STILL LAWYERS FOR GM AND ITS GERMAN SUBSIDIARY ADAM OPEL AG TRIED TO MAKE THE CASE THAT THE ALLEGED THEFT OF SENSITIVE GM DOCUMENTS TOGETHER WITH WHAT IT CALLS A SYSTEMATIC CAMPAIGN TO POACH KEY EMPLOYEES AMOUNTS TO TRYING TO STEAL THE GM'S PURCHASINGSYSTEM KNOWHOW VW YESTERDAY TOLD THE COURT IT WOULDN'T CONTEST THE INJUNCTION BARRING FURTHER HIRING IN AN EFFORT TO SIMPLIFY COURT PROCEEDINGS THE GERMAN CAR MAKER DENIED THAT THIS DECISION INDICATED ANY ADMISSION OF WRONGDOING 9401060140 940106 BUSINESS BRIEFS HORIZON OUTLET CENTERS INC IS ACQUIRING THE GEORGIAN PLACE OUTLET CENTER SOMERSET PA IN A DEAL VALUED AT 181 MILLION HEILIGMEYERS CO ACQUIRED CERTAIN ASSETS OF 92 STORES OF MCMAHAN'S FURNITURE CO FOR 55 MILLION AN UNAFFILIATED PARTY WILL BUY 70 OF THE STORES FOR ABOUT 57 MILLION AND LEASE THEM BACK TO HEILIGMEYERS MONTEREY PASTA CO EXPANDED ITS RETAIL DISTRIBUTION INTO SOUTHERN CALIFORNIA THROUGH FOUR MAJOR GROCERY CHAINS AND AGREED TO OPEN 12 QUICKSERVICE GOURMET PASTA RESTAURANTS IN MAJOR SHOPPING MALLS IN THAT REGION DURING THE SECOND QUARTER OF THIS YEAR ACOI INC'S SHAREHOLDERS APPROVED A PROPOSAL TO CHANGE THE AUTOINSURANCE CONCERN'S NAME TO HALLMARK FINANCIAL SERVICES INC EFFECTIVE IMMEDIATELY TRINET CORPORATE REALTY TRUST INC ACQUIRED THREE DISTRIBUTION FACILITIES FROM VOLKSWAGEN OF AMERICA A UNIT OF VOLKSWAGEN AG FOR 26 MILLION STERIS CORP COMPLETED ITS ACQUISITION OF MICRODIMENSIONS INC MENTOR OHIO TERMS WEREN'T DISCLOSED 9401060139 940106 JUDGE ORDERS RR DONNELLEY TO SHED MEREDITH/BURDA ON ANTITRUST GROUNDS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL AN ADMINISTRATIVE LAW JUDGE DEALT RR DONNELLEY & SONS CO A SETBACK IN ITS LONGSIMMERING DISPUTE WITH FEDERAL ANTITRUST REGULATORS BY ORDERING THE COMPANY TO SHED OPERATIONS IT PAID 4875 MILLION TO ACQUIRE DESPITE STRENUOUS FEDERAL TRADE COMMISSION OBJECTIONS MORE THAN THREE YEARS AGO JUDGE LEWIS F PARKER FOUND IN FAVOR OF THE FTC'S CLAIM THAT THE CHICAGO COMPANY'S 1990 ACQUISITION OF MEREDITH/BURDA COS IMPROPERLY RESTRICTS COMPETITION IN THE FIELD KNOWN AS HIGHVOLUME PUBLICATION GRAVURE PRINTING DONNELLEY HE RULED MUST SELL THE FOUR PLANTS INVOLVED IN THE ACQUISITION TO AN ACQUIRER APPROVED BY THE FTC THE WORLD'S BIGGEST COMMERCIALPRINTING CONCERN SAID IT WILL APPEAL THE RULING THE APPEAL WILL HAVE THE EFFECT OF STAYING THE ORDER TO SHED THE CONTESTED OPERATIONS IN LATE 1989 DONNELLEY AGREED TO ACQUIRE MEREDITH/BURDA A JOINT VENTURE OWNED BY DES MOINES IOWABASED MEREDITH CORP AND MEMBERS OF GERMANY'S BURDA FAMILY AFTER A LENGTHY REVIEW THE FTC ASKED THE FEDERAL COURT FOR THE DISTRICT OF COLUMBIA TO BAR THE PURCHASE ON THE GROUNDS THAT COMPETITION IN THE GRAVURE PRINTING PROCESS COULD BE HARMED THE GRAVURE PRINTING PROCESS REPRESENTS LESS THAN 20 OF ALL US PRINTING AND IS OVERSHADOWED IN SCOPE BY A DIFFERENT TECHNOLOGY KNOWN AS OFFSET PRINTING IN AUGUST 1990 US DISTRICT COURT JUDGE STANLEY S HARRIS DECLINED THE FTC'S REQUEST TO ISSUE THE INJUNCTION THE REAGAN APPOINTEE FOUND AT THE TIME THAT ANY ANTICOMPETITIVE CONSEQUENCES ARISING OUT OF THE PROPOSED ACQUISITION ARE UNLIKELY THE FTC'S CHALLENGE HE WROTE MIGHT HAVE HAD CONSIDERABLE VALIDITY 10 OR EVEN FIVE YEARS AGO BUT TECHNOLOGICAL DEVELOPMENTS HAVE PERMITTED PRINTERS TO USE THE OFFSET METHOD FOR PRINTING MAGAZINES CATALOGS AND THE LIKE WHICH ARE INDISTINGUISHABLE FROM THOSE PRINTED BY THE GRAVURE METHOD HE ALSO WROTE THAT CUSTOMERS OF COMMERCIALPRINTING OPERATIONS ARE SOPHISTICATED AND POSSESS SUBSTANTIAL BARGAINING POWER EVEN IN MARKETS WHERE COMPETITION IS LIMITED THAT RULING CLEARED THE WAY FOR DONNELLEY TO CLOSE THE DEAL WHICH IT DID IN SEPTEMBER 1990 THE FTC APPEALED THE MATTER TO THE INTERNAL ADMINISTRATIVE LAW JUDGE SIX MONTHS OF HEARINGS ON THE MATTER CONCLUDED LAST JUNE JUDGE PARKER'S RULING THIS WEEK NOTED THAT PRIOR TO THE ACQUISITION MEREDITH/BURDA HAD BEEN THE NATION'S THIRDLARGEST COMMERCIAL PRINTER AND THAT IT AND DONNELLEY HAD BEEN DIRECT AND SUBSTANTIAL COMPETITORS IN THE GRAVURE MARKET THE MERGER HE SAID CREATED A FIRM WITH DOMINANT MARKET POWER OF AS MUCH AS 487 OF THE GRAVURE MARKET HE SPECIFICALLY REJECTED JUDGE HARRIS'S FINDING THAT COMPETITION WOULDN'T BE HURT BECAUSE THE OFFSETPRINTING TECHNOLOGY OFFERS AN ALTERNATIVE DONNELLEY REITERATED THAT IT BELIEVES THE ACQUISITION WAS LEGALLY PROPER THE COMPANY VOWED TO APPEAL THE RULING TO THE FULL FTC AND ON TO THE FEDERAL COURTS IF NEEDED DONNELLEY SHARES CLOSED YESTERDAY AT 30375 OFF 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9401060138 940106 ORYX ENERGY BUYS OIL INTEREST DALLAS ORYX ENERGY CO SAID IT ACQUIRED AN ADDITIONAL 82 INTEREST IN THE NINIAN OIL FIELD IN THE NORTH SEA FROM ENTERPRISE OIL PLC FOR 33 MILLION NINIAN IS ORYX'S LARGEST PRODUCING FIELD AND THE COMPANY SAID THE ACQUISITION BOOSTS ITS INTEREST TO 295 FROM 213 ORYX'S SHARE OF PRODUCTION FROM THE FIELD WILL RISE TO 20000 BARRELS DAILY FROM 15000 THE COMPANY SAID 9401060137 940105 CORPORATE FINANCE BY JEFF D OPDYKE SURE INITIAL PUBLIC OFFERINGS RAISED A BUNDLE OF MONEY FOR TEXAS COMPANIES LAST YEAR MORE THAN 3 BILLION BUT THEY WERE ONLY A SMALL PART OF THE CAPITAL HARVESTED IN THE PUBLIC MARKETS IN 1993 ALSO HOT IN TEXAS SECONDARY AND PREFERRED STOCK OFFERINGS AND DEBT PLACEMENTS ALL TOLD TEXAS BUSINESS PULLED IN MORE THAN 291 BILLION THREE TIMES THE AMOUNT RAISED JUST THREE YEARS AGO FOR THE MOST PART THIS INCREASED ACTIVITY IS THE RESULT OF COMPANIES LOOKING TO CLEAN UP THEIR BALANCE SHEETS AFTER THE PROBLEMS OF THE 1980S THEY ARE ATTRACTED BY TODAY'S LOW INTEREST RATES A GENERALLY FAVORABLE ECONOMIC OUTLOOK AND WALL STREET OPTIMISM SO MANY COMPANIES THAT HAVE NEEDED TO REPAIR THEIR BALANCE SHEETS FOR SO LONG FINALLY FOUND A CONSTRUCTIVE MARKET THEY COULD TAKE ADVANTAGE OF SAYS RICK GORDON MANAGING DIRECTOR IN MERRILL LYNCH'S HOUSTON OFFICE HOUSTON'S TENNECO INC FOR EXAMPLE OUTGUNNED EVERYONE IN THE SECONDARYOFFERING ARENA ISSUING 106 BILLION OF COMMON STOCK IN APRIL TO RETIRE CERTAIN DEBT ALSO IN HOUSTON COASTAL CORP PICKED UP 200 MILLION IN AN APRIL PREFERRED STOCK OFFERING WHICH ALSO EXTINGUISHED SOME OF THAT COMPANY'S DEBT NOT THAT DEBT IS DEAD TEXAS COMPANIES LOADED ON NEARLY 19 BILLION IN 1993 THAT HOWEVER IS DOWN 16 FROM THE YEAR BEFORE WHEN MOST CORPORATIONS FIRST JUMPED AT LOW INTEREST RATES AS MIGHT BE EXPECTED DALLAS AND HOUSTON ACCOUNTED FOR NEARLY ALL THE FINANCING ACTIVITY OF THE 280 DIFFERENT OFFERINGS IN 1993 THE TWO METRO AREAS ACCOUNTED FOR 223 THE LARGEST CORPORATE DEALS OUTSIDE OF DALLAS AND HOUSTON GULF STATES UTILITIES INC BEAUMONT PICKED UP 170 MILLION IN DEBT IN JULY WHILE LAST MONTH SAN ANTONIO'S ARGYLE TELEVISION OPERATIONS INC RAISED 150 MILLION IN DEBT 9401060136 940106 WHO'S NEWS TURNER CORP TURNER CORP NEW YORK DAVID J SMITH 53 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THE BUILDING CONCERN MR SMITH SUCCEEDS ALLEN H WAHLBERG 60 WHO WAS NAMED SENIOR VICE PRESIDENT STRATEGIC PLANNING AND RISK ANALYSIS MR SMITH HAD BEEN VICE PRESIDENT AND TREASURER OF MACK TRUCKS INC A UNIT OF RENAULT VEHICULES INDUSTRIELS THE TRUCK DIVISION OF FRENCH AUTO MAKER RENAULT SA 9401060135 940106 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 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 LOW 3 1/16 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 314 30 TO 59 DAYS 316 60 TO 89 DAYS 320 90 TO 119 DAYS 322 120 TO 149 DAYS 325 150 TO 179 DAYS 333 180 TO 239 DAYS 343 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 321 30 DAYS 323 60 DAYS 327 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 259 TWO MONTHS 265 THREE MONTHS 281 SIX MONTHS 304 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 315 ONE MONTH 325 THREE MONTHS 340 SIX MONTHS BANKERS ACCEPTANCES 310 30 DAYS 311 60 DAYS 315 90 DAYS 320 120 DAYS 326 150 DAYS 330 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 9/16 SIX MONTHS 3 7/8 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 550 GERMANY 588 JAPAN 3 SWITZERLAND 750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY 3 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 310 13 WEEKS 329 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 707 60 DAYS 715 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 702 60 DAYS 712 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9401060134 940106 WHAT'S NEWS WORLDWIDE THOUSANDS OF TROOPS SWEPT INTO SOUTHERN MEXICO TO QUELL A REBELLION ABOUT 12000 SOLDIERS ONEFIFTH OF MEXICO'S ARMED FORCES ATTACKED BY AIR AND BY LAND ON THE FIFTH DAY OF AN UPRISING BY ARMED PEASANTS IN THE SOUTHERN STATE OF CHIAPAS THE MEXICAN AIR FORCE DROPPED BOMBS AND FIRED ROCKETS ON SUSPECTED GUERRILLA STRONGHOLDS IN THE HILLS RINGING THE TOWN OF SAN CRISTOBAL DE LAS CASAS AND HUNDREDS OF REBELS WERE SAID TO BE FLEEING INTO THE HILLS THE MASSIVE MILITARY OFFENSIVE BY THE GOVERNMENT CAME VIRTUALLY ON THE HEELS OF ITS OFFER TO NEGOTIATE ARMY AUTHORITIES SAID THAT THE DEATH TOLL FROM THE UPRISING STOOD AT 95 BUT ROMAN CATHOLIC SOURCES SAID THE FIGURE WAS CLOSER TO 400 NORTH KOREA AND THE US HAVE REACHED AN AGREEMENT IN PRINCIPLE THAT WOULD OPEN PYONGYANG'S SEVEN DECLARED NUCLEAR RESEARCH SITES TO INTERNATIONAL INSPECTION THE STATE DEPARTMENT SAID NORTH KOREA WILL OPEN TALKS WITH THE INTERNATIONAL ATOMIC ENERGY AGENCY TO REVIEW DETAILS OF THE INSPECTION CLINTON'S PERSONAL LAWYER HAD THE JUSTICE DEPARTMENT SUBPOENA DOCUMENTS REGARDING WHITEWATER DEVELOPMENT A MOVE THAT PROBABLY PREVENTS THEIR RELEASE UNDER THE FREEDOM OF INFORMATION ACT THE CLINTONS HAVE TRIED TO DEFUSE A CONTROVERSY OVER THEIR WHITEWATER PARTNERSHIP WITH THE OWNER OF A FAILED THRIFT SERB MILITARY FORCES UNLEASHED HEAVY ARTILLERY ANTIAIRCRAFT AND SNIPER FIRE ON SARAJEVO IN THE WORST BOMBARDMENT RESIDENTS COULD RECALL IN MONTHS MEANWHILE THE UN ANNOUNCED THAT LT GEN SIR MICHAEL ROSE OF BRITAIN WOULD SUCCEED BELGIAN LT GEN FRANCIS BRIQUEMONT AS THE UN'S COMMANDER FOR BOSNIA ISRAEL AND THE PLO AGREED TO MEET AGAIN IN EGYPT NEXT WEEK TO TRY TO IRON OUT DIFFERENCES OVER PALESTINIAN AUTONOMY BUT A SPOKESMAN FOR ISRAEL'S RABIN SAID IT WOULD TAKE MANY WEEKS TO REACH AN ACCORD MEANWHILE PLO CHIEF ARAFAT SENT AN AIDE TO JORDAN FOR EMERGENCY TALKS AMID SOURING RELATIONS THE AMA HAS MADE BIG CAMPAIGN CONTRIBUTIONS TO CONSERVATIVES WHO OPPOSED THE AMA ON SOME KEY ISSUES ACCORDING TO A STUDY IT FOCUSED ON THREE ISSUES PROMOTING TOBACCO EXPORTS REQUIRING A WAITING PERIOD FOR HANDGUN PURCHASES AND RESTRICTING WHAT DOCTORS CAN TELL PATIENTS ABOUT ABORTIONS GEORGIA'S DEPOSED PRESIDENT HAS DIED RUSSIAN AND GEORGIAN NEWS AGENCIES SAID GAMSAKHURDIA REPORTEDLY EITHER KILLED HIMSELF IN A GEORGIAN VILLAGE BESIEGED BY HIS RIVALS OR DIED IN A SKIRMISH JUST NORTH OF THE GEORGIAN BORDER A NASA INVESTIGATORY PANEL CONCLUDED THAT THE DISAPPEARANCE OF THE AGENCY'S MARS OBSERVER MOST LIKELY WAS CAUSED BY A FUELLINE LEAK THAT SENT THE SPACECRAFT SPINNING OUT OF CONTROL THE REPORT IS PROBABLY THE CLOSEST THAT NASA WILL EVER COME TO KNOWING WHAT CAUSED THE FAILURE OF ITS 1 BILLION MARS MISSION IN AUGUST THE FRENCH GOVERNMENT ANNOUNCED PLANS TO IMPOSE TIGHT CONTROLS OVER ARTIFICIAL FERTILIZATION AMID A CONTROVERSY CONCERNING THE BIRTH OF TESTTUBE TWINS TO A 59YEAROLD BRITISH WOMAN THE CONSERVATIVE GOVERNMENT SAID IT WOULD PROPOSE BILLS REQUIRING JUDGES TO APPROVE EMBRYO IMPLANTATIONS SOUGHT BY INFERTILE COUPLES TECHNICIANS IN UKRAINE HAVE BEGUN REMOVING THE NUCLEAR WARHEADS FROM THE SS24 THE COUNTRY'S MOST MODERN AND POTENT MISSILE THE MOVE WHICH HAS BEEN VERIFIED BY US SATELLITES IS A BEGINNING STEP TOWARD UKRAINE'S TREATY OBLIGATION TO DISMANTLE ITS MISSILES DESTROY THE SILOS AND SEND THE WARHEADS BACK TO RUSSIA US SOLDIERS BEGAN A ROADIMPROVEMENT AND SCHOOLCONSTRUCTION MISSION IN A JUNGLE REGION OF COLOMBIA WHERE REBELS AND COCAINE TRAFFICKERS OPERATE A GROUP OF 120 US SOLDIERS FLEW TO THE VILLAGE OF JUANCHACO TO BEGIN THE WORK WHICH SOME LOCAL POLITICIANS HAVE CONDEMNED AS A RUSE TO LET THE US INTERVENE IN COLOMBIA'S INTERNAL AFFAIRS THE IRA'S POLITICAL WING WILL SEND A LETTER TO THE BRITISH GOVERNMENT TO GET CLARIFICATION OF A NORTHERN IRELAND PEACE PLAN THE GROUP'S LEADER SAID GERRY ADAMS THE SINN FEIN PRESIDENT SAID IN A STATEMENT ISSUED IN BELFAST THAT HE IS BAFFLED BY BRITISH PRIME MINISTER MAJOR'S REFUSAL TO DISCUSS THE ANGLOIRISH PEACE PLAN WITH HIM DIED THOMAS P TIP O'NEILL JR 81 FORMER HOUSE SPEAKER WHOSE CAREER BROUGHT HIM FROM AN IRISH IMMIGRANT NEIGHBORHOOD TO THE HIGHEST LEVELS OF NATIONAL POWER LAST NIGHT IN BOSTON THE DEMOCRAT RETIRED IN 1987 AFTER 17 TERMS IN CONGRESS 9401060133 940106 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT AMERICAN PRESIDENT COS 150 MILLION OF DEBENTURES DUE JAN 15 2024 PRICED AS 8S AT 98956 TO YIELD 8093 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 155 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC BANK OF BOSTON CORP 300 MILLION OF SUBORDINATED NOTES DUE FEB 1 2004 PRICED AS 6625S AT 9948 TO YIELD 6696 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 83 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK SYSTEM 429 MILLION OF NOTES DUE JAN 13 1997 PRICED AT PAR TO YIELD 475 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 15 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE JAN 12 2009 PRICED AT PAR TO YIELD 663 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED AT A SPREAD OF 76 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF STEPUP NOTES DUE JAN 12 1999 PRICED INITIALLY AT PAR TO YIELD 5 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES JAN 12 1996 TO 585 THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 72 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF STEPUP MEDIUMTERM NOTES DUE JAN 19 1999 PRICED INITIALLY AT PAR TO YIELD 5 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES TO 59 JAN 19 1996 THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 24 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF STEPUP MEDIUMTERM NOTES DUE JAN 17 1997 PRICED INITIALLY AT PAR TO YIELD 415 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES TO 53 JAN 17 1995 THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FIRST NATIONAL BANK OF MARYLAND 100 MILLION OF FLOATINGRATE NOTES DUE JAN 9 1995 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL FLOAT WEEKLY AND PAY QUARTERLY AT EIGHT BASIS POINTS ABOVE THREEMONTH TREASURY BILLS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FIRST NATIONAL BANK OF MARYLAND IS A UNIT OF FIRST MARYLAND BANCORP PROGRESSIVE CORP 200 MILLION OF NOTES DUE JAN 15 2004 PRICED AS 66S AT 99854 TO YIELD 662 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC STUDENT LOAN MARKETING ASSOCIATION 700 MILLION OF FLOATINGRATE NOTES DUE JAN 13 1999 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL PAY QUARTERLY AND FLOAT WEEKLY AT 21 BASIS POINTS ABOVE THREEMONTH TREASURY BILLS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC NEW JERSEY BUILDING AUTHORITY 315 MILLION OF 1994 SERIES STATEBUILDING REVENUE BONDS APPARENTLY WON BY GOLDMAN SACHS & CO YIELDS FOR REOFFERED BONDS RANGE FROM 325 IN 1996 TO 53 IN 201719 THE BONDS HAVE BEEN RATED DOUBLEA BY MOODY'S AND DOUBLEAMINUS BY S&P FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1670 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 440 MILLION OF REMIC SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 199412 IS BACKED BY FANNIE MAE 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 1 BILLION OF 5 EUROBONDS DUE JAN 31 1997 AT ISSUE PRICE 1013 VIA GOLDMAN SACHS INTERNATIONAL AND LEHMAN BROTHERS INTERNATIONAL REOFFERED AT 100125 TO YIELD 495 A MARGIN OF 32 BASIS POINTS OVER COMPARABLE US TREASURY GUARANTOR ABBEY NATIONAL PLC FEES 1375 BAYERNHYPO FINANCE NV GERMAN PARENT 500 MILLION MARKS OF 6 EUROBONDS DUE FEB 9 2004 AT ISSUE PRICE 1011 VIA BAYERISCHE HYPOTHEKENUND WECHSELBANK AG BONDS YIELD 619 AFTER FEES OF 25 A SPREAD OF 60 BASIS POINTS ABOVE GERMAN BUND OF SEPTEMBER 2003 GUARANTOR BAYERISCHE HYPOTHEKENUND WECHSELBANK AG CREDIT FONCIER DE FRANCE FRENCH AGENCY THREE BILLION FRENCH FRANCS OF 575 EUROBONDS DUE NOV 28 2002 AT ISSUE AND REOFFER PRICE 992 VIA BNP CAPITAL MARKETS LTD BONDS YIELD SPREAD OF 22 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES 03 CREDIT LOCAL DE FRANCE FRENCH AGENCY 200 BILLION LIRE OF 75 EUROBONDS DUE JAN 26 1999 AT ISSUE PRICE 101875 VIA JP MORGAN SECURITIES LTD BONDS YIELD 75 AFTER FEES OF 1875 FINNISH EXPORT CREDIT LTD FINNISH AGENCY FIVE BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 11 1999 AT ISSUE PRICE 10368 VIA MERRILL LYNCH INTERNATIONAL LTD PAYABLE QUARTERLY AT 30 BASIS POINTS OVER THREEMONTH YEN LONDON INTERBANK OFFERED RATE UNTIL JAN 11 1997 THEREAFTER PAYABLE SEMIANNUALLY AT FIVEYEAR YEN SWAP RATE FEES 025 GENERAL ELECTRIC CAPITAL CORP US PARENT 250 BILLION LIRE OF 7375 EUROBONDS DUE FEB 8 1999 AT ISSUE PRICE 1014 VIA PARIBAS CAPITAL MARKETS LTD BONDS YIELD 749 AFTER FEES OF 1875 GENERAL ELECTRIC CAPITAL IS A GENERAL ELECTRIC CO UNIT LA CAISSE CENTRALE DES JARDINS DE QUEBEC CANADA 100 MILLION CANADIAN DOLLARS OF 625 EUROBONDS DUE DEC 29 1999 AT ISSUE PRICE 10125 VIA HAMBROS BANK LTD REOFFERED AT 9965 TO YIELD 632 A SPREAD OF 48 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND FEES 1875 LANDESBANK SCHLESWIGHOLSTEIN GIROZENTRALE LUXEMBOURG BRANCH GERMAN PARENT 100 MILLION OF 65 SUBORDINATED EUROBONDS DUE FEB 4 2004 AT ISSUE PRICE 10005 VIA DAIWA EUROPE LTD REOFFERED AT 984 TO YIELD 672 A MARGIN OF 38 BASIS POINTS ABOVE COMPARABLE UK GILT FEES TWO OSTERREICHISCHE KONTROLLBANK AG AUSTRIAN AGENCY 30 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 27 2001 AT ISSUE PRICE 107816 VIA NIKKO EUROPE PLC PAYABLE SEMIANNUALLY AT SIXMONTH YEN LIBOR PLUS 70 BASIS POINTS FEES UNDISCLOSED PRIMARY INDUSTRY BANK OF AUSTRALIA AUSTRALIA 50 MILLION AUSTRALIAN DOLLARS OF 675 EUROBONDS DUE FEB 25 1999 AT ISSUE PRICE 10115 VIA HAMBROS BANK LTD BONDS YIELD 693 AT 99275 COMANAGERS' BREAKEVEN PRICE FEES TWO LESS 0125 FOR LEAD MANAGER 9401060132 940106 ENTERPRISE VENTURE CAPITALISTS TARGET WOMENOWNED BUSINESSES NEW FUNDS SEE OPPORTUNITIES FOR INVESTMENT IN A MARKET LONG NEGLECTED BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL FOR YEARS THE VENTURECAPITAL INDUSTRY VIRTUALLY IGNORED BUSINESSES OWNED BY WOMEN BUT NOW SUCH ENTREPRENEURS CAN TAP A NEW SOURCE OF MONEY FUNDS TARGETED SOLELY AT WOMEN SEVERAL VENTURECAPITAL FUNDS RECENTLY HAVE SPRUNG UP TO PROVIDE FEMALE ENTREPRENEURS WITH CAPITAL AMONG THEM WOMEN'S EQUITY FUND IN BOULDER COLO NEW ERA CAPITAL PARTNERS IN LOS ANGELES AND INROADS CAPITAL PARTNERS IN CHICAGO TOGETHER THE FUNDS SAY THEY COULD PROVIDE WOMENOWNED BUSINESSES WITH AS MUCH AS 180 MILLION BY THE END OF THIS YEAR ALTHOUGH THE 180 MILLION IS STILL NOWHERE NEAR THE CAPITAL THAT WOMEN NEED IT'S AN IMPORTANT FIRST STEP SAYS DAWNMARIE DRISCOLL A CAPE CORAL FLA AUTHOR AND BUSINESS CONSULTANT THE MONEY MAY SERVE TO ENCOURAGE TRADITIONAL COMMERCIAL LENDERS AND OTHER CAPITAL PROVIDERS TO LOOK SERIOUSLY AT WOMEN AS ENTREPRENEURS SHE ADDS EXPERTS ESTIMATE THAT WOMENOWNED BUSINESSES RECEIVED LESS THAN 1 OF THE APPROXIMATELY 3 BILLION INVESTED BY INSTITUTIONAL VENTURE CAPITALISTS IN 1993 YET BUSINESSES OWNED BY WOMEN ACCOUNT FOR AN ESTIMATED 30 OF ALL US BUSINESSES FOR MANY WOMEN ENTREPRENEURS CREDIT CARDS ARE THE NO 1 SOURCE OF SHORTTERM FINANCING MS DRISCOLL SAYS SOME NEW VENTURE CAPITALISTS AIM TO CHANGE THAT THEY SEE THE MOST PROMISING OPPORTUNITIES IN HELPING ESTABLISHED WOMENOWNED BUSINESSES TO EXPAND THEY ALSO EXPECT BIG GAINS FROM FINANCING THE CONSOLIDATION OF SMALL FRAGMENTED BUSINESSES AND FUNDING TRANSITIONS IN FAMILYOWNED ENTERPRISES THE SPECIALIZED VENTURECAPITAL FUNDS SAY THEY PLAN TO CONCENTRATE ON INDUSTRIES SUCH AS RETAILING FOOD PRODUCTS HEALTH CARE AND MEDIA WHERE WOMEN PLAY MAJOR ROLES OR WHERE GROWTH IS EXPECTED THE LARGEST NUMBERS OF FEMALEOWNED BUSINESSES CURRENTLY ARE FOUND IN RETAILING AND IN BUSINESS AND PROFESSIONAL SERVICES WITH WOMEN CREATING BUSINESSES AT A RECORD RATE THEIR VENTURES OFFER EXTRAORDINARY OPPORTUNITIES FOR INVESTMENT SAYS AARON HARBER CHAIRMAN OF WOMEN'S EQUITY FUND TRADITIONAL FINANCIAL INSTITUTIONS HAVE OVERLOOKED OR MISSED A NUMBER OF EXCEPTIONAL INVESTMENT OPPORTUNITIES OFFERED BY WOMENOWNED BUSINESSES MR HARBER AN ECONOMIC CONSULTANT AND ANNETTE TAYLOR A FORMER BANKER HAVE PUT TOGETHER MORE THAN 55 MILLION IN DEBT AND EQUITY CAPITAL TO INVEST IN WOMENOWNED BUSINESSES BASED IN COLORADO ORGANIZED IN 1992 THEIR FUND COMPLETED ITS FINANCING LAST WEEK IT INTENDS TO BEGIN INVESTING WITHIN THE NEXT 60 TO 90 DAYS MR HARBER SAYS WOMEN HAVE BUILT SIGNIFICANT BUSINESSES IN SPITE OF BEING DENIED ACCESS TO TRADITIONAL SOURCES OF CAPITAL NOTES JUDITH FRANK COFOUNDER OF NEW ERA CAPITAL PARTNERS MANY OF THESE BUSINESSES ARE LEAN WELLMANAGED COMPANIES WITH EXCELLENT POTENTIAL THAT HAVE NOT BEEN OVERPRICED BY THE CAPITAL MARKETS MS FRANK A FORMER WARNER BROS EXECUTIVE TEAMED UP LAST SPRING WITH VENTURE CAPITALISTS RAYMOND DOIG AND ROBERT FLYNN THE TRIO NOW IS TRYING TO RAISE 50 MILLION FOR NEW ERA WHICH WILL INVEST IN WOMENOWNED ENTERPRISES ACROSS THE COUNTRY LAST MONTH SONA WANG MARGARET FISHER AND JERROLD CARRINGTON LAUNCHED INROADS CAPITAL PARTNERS WHICH PLANS TO RAISE 75 MILLION THE FUND PRIMARILY WILL INVEST IN BUSINESSES OWNED BY WOMEN EVEN THOUGH SUCH BUSINESSES HAVE RECEIVED SOME FUNDING FROM TRADITIONAL VENTURE CAPITALISTS MOST WOMEN AND MINORITY ENTREPRENEURS SELDOM FIND THEIR WAY TO THESE FUNDS EXPLAINS MS WANG A GENERAL PARTNER AT BATTERSON JOHNSON & WANG A TRADITIONAL VENTURECAPITAL CONCERN IN CHICAGO THE NEW FUND HAS NO OFFICIAL LINK TO BATTERSON JOHNSON MS WANG SAYS THAT ONE MAJOR PROBLEM IS THE PAUCITY OF FEMALE PARTNERS AT TRADITIONAL VENTURECAPITAL FUNDS EVEN AT THE HANDFUL OF FUNDS WITH FEMALE PARTNERS WOMENOWNED BUSINESSES RARELY GET THE NOD OF THE 16 INVESTMENTS MADE BY BATTERSON JOHNSON SINCE 1988 MS WANG NOTES ONLY ONE WAS A STARTUP FOUNDED BY A WOMAN BUT NOT EVERY FEMALE ENTREPRENEUR SEES A NEED FOR VENTURE FUNDS THAT INVEST EXCLUSIVELY IN WOMEN IN INDUSTRIES SUCH AS COMPUTER TECHNOLOGY AND BIOTECHNOLOGY VENTURES FOUNDED BY WOMEN GET FUNDED WITHOUT GENDER DISCRIMINATION SAYS ANN WINBLAD A SUCCESSFUL SOFTWARE ENTREPRENEUR WHO LATER BECAME A MANAGING PARTNER OF HUMMER WINBLAD VENTURE PARTNERS IN EMERYVILLE CALIF THE VENTURECAPITAL FUND INVESTS ONLY IN SOFTWARE FIRMS IT COULD BE COUNTERPRODUCTIVE TO SEGREGATE WOMEN INTO AN ALLWOMEN'S FUND MS WINBLAD SAYS MOREOVER WOMEN BUSINESS OWNERS THEMSELVES MAY SHY AWAY FROM SUCH FUNDS THE VENTURE CAPITALIST ADDS WOULD I BE ATTRACTED TO A FUND THAT INVESTS ONLY IN WOMEN SHE ASKS IT ISN'T AS APPEALING AS A BROADER FUND WHETHER THE SPECIALIZED FUNDS ULTIMATELY SUCCEED ALSO IS AN OPEN QUESTION ONLY ONE FUND HAS COMPLETED RAISING ITS CAPITAL INROADS AND NEW ERA ADMIT THAT THE TASK WON'T BE EASY BECAUSE INVESTORS ARE WARY OF NEW VENTURECAPITAL FUNDS BUT BOTH FUNDS ARE ENCOURAGED BY THE GROWING DESIRE OF PUBLIC PENSION FUNDS TO INVEST IN ENTERPRISES OWNED BY WOMEN AND MINORITIES MORE PENSION FUNDS UNDER PRESSURE TO MAKE SOCIALLY RESPONSIBLE INVESTMENTS ARE ATTRACTED TO BUSINESSES OWNED BY WOMEN AND MINORITIES BECAUSE SUCH BUSINESSESS HAVE LARGELY BEEN OVERLOOKED IN THE PAST THE OPPORTUNITY TO MAKE MONEY BY INVESTING IN THEM IS SEEN TO BE EVEN GREATER SAYS KELLY MOYLAN A PRINCIPAL AT HAMILTON LANE ADVISERS THE PHILADELPHIA CONCERN EVALUATES ALTERNATIVE INVESTMENTS FOR PUBLIC PENSION FUNDS 9401060131 940106 TECHNOLOGY BRIEF BRISTOLMYERS SQUIBB CO COMPANY FILES TO MARKET EXPERIMENTAL AIDS DRUG BRISTOLMYERS SQUIBB CO NEW YORK SAID IT FILED AN APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION FOR APPROVAL TO MARKET ITS EXPERIMENTAL AIDS DRUG KNOWN AS D4T THE DRUG WHICH BRISTOLMYERS HOPES TO MARKET UNDER THE BRAND NAME ZERIT IS IN THE SAME CHEMICAL FAMILY AS THE THREE ANTIVIRAL DRUGS CURRENTLY APPROVED FOR USE AGAINST HUMAN IMMUNODEFICIENCY VIRUS WHICH CAUSES AIDS BRISTOLMYERS SAID ABOUT 4000 AIDS PATIENTS ALREADY HAVE TAKEN THE DRUG AS PART OF THE COMPANY'S CLINICAL TRIALS MOREOVER NEARLY 11000 MORE PATIENTS HAVE RECEIVED THE DRUG FOR FREE THE DONATIONS WERE PART OF A SPECIAL PROGRAM FOR AIDS PATIENTS WHO HAVEN'T RESPONDED TO THE OTHER DRUGS MAKING THE DRUG AVAILABLE BEFORE ITS APPROVAL BRISTOLMYERS ALREADY SELLS ANOTHER OF THE DRUGS IN THE CHEMICAL CLASS UNDER THE BRAND NAME VIDEX THE OTHER DRUGS ARE AZT SOLD BY WELLCOME PLC OF BRITAIN AND DDI SOLD BY ROCHE HOLDING LTD OF SWITZERLAND 9401060130 940106 WHO'S NEWS AMETECH INC AMETECH INC OKLAHOMA CITY DENNIS SENKOWSKI RESIGNED AS PRESIDENT OF THE HAZARDOUSWASTE MANAGEMENT CONCERN TO PURSUE OTHER BUSINESS INTERESTS THE COMPANY SAID MR SENKOWSKI 49 YEARS OLD COULDN'T BE REACHED FOR COMMENT AMETECH'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER CARL B ANDERSON JR WILL SERVE AS INTERIM PRESIDENT UNTIL A SUCCESSOR TO MR SENKOWSKI IS NAMED 9401060129 940106 TECHNOLOGY CONSUMER GROUP SUES TO GET CLINICAL TRIALS ON ELI LILLY DRUG WASHINGTON A CONSUMER HEALTH GROUP SUED THE FOOD AND DRUG ADMINISTRATION TO OBTAIN COMPLETE CLINICAL STUDIES ON THE ELI LILLY & CO HEPATITIS DRUG FIALURIDINE WHICH KILLED FIVE PATIENTS IN TESTS LAST YEAR PUBLIC CITIZEN HEALTH RESEARCH GROUP SAID THE FDA HASN'T DISCLOSED EARLY CLINICAL FINDINGS ON THE DRUG ALSO CALLED FIAU THE DRUG HAD BEEN CONSIDERED A PROMISING REMEDY FOR HEPATITIS B BUT IN LATER CLINICAL TRIALS AT THE NATIONAL INSTITUTES OF HEALTH FIAU CAUSED IRREVERSIBLE LIVER DAMAGE AND DEATHS THE HEALTH GROUP'S DIRECTOR SIDNEY M WOLFE WROTE FDA COMMISSIONER DAVID KESSLER LAST MONTH CLAIMING THIS TRAGEDY COULD HAVE BEEN PREVENTED BUT FOR A COVERUP OF DATA ON LIVER TOXICITY BY ELI LILLY THE LAWSUIT FILED IN US DISTRICT COURT HERE SAID THE FDA DECLINED TO PROVIDE EARLY ANIMAL AND HUMAN STUDY DATA FROM THE TRIALS WHICH THE GROUP HAD REQUESTED INDIANAPOLISBASED LILLY SAID IT AND THE NATIONAL INSTITUTES OF HEALTH STOPPED THE TRIALS LAST YEAR AS SOON AS THEY REALIZED FIAU WAS CAUSING LIVER DAMAGE IN PATIENTS THE FDA DECLINED TO COMMENT THE GROUP'S DEC 9 LETTER TO THE FDA SAID LILLY CONDUCTED EARLY CLINICAL TRIALS ON 16 NORMAL VOLUNTEERS BEFORE THE NIH RESEARCH AND FOUND A CLEAR WARNING SIGNAL ABOUT LIVER TOXICITY THEN THERE IS NO QUESTION THAT ELI LILLY SHOULD HAVE STOPPED THE NIH TRIAL BEFORE THREE OF THE FIVE PATIENTS WHO EVENTUALLY DIED HAD GOTTEN ANY DOSES OF FIAU WROTE DR WOLFE BUT A LILLY SPOKESMAN SAID EARLY FIAU STUDIES HAVE BEEN REVIEWED BY MANY EXPERTS WHO SAY THE LATER TOXICITY WAS NOT PREDICTABLE SEPARATELY STANDARD & POOR'S CORP SAID IT LOWERED ITS OUTLOOK ON LILLY LONGTERM DEBT TO NEGATIVE FROM STABLE BUT AFFIRMED ITS CURRENT RATINGS ON LILLY SENIOR UNSECURED DEBT AND COMMERCIAL PAPER 9401060128 940106 DELTA'S DECEMBER TRAFFIC ROSE ATLANTA DELTA AIR LINES SAID ITS DECEMBER TRAFFIC ROSE 63 TO 666 BILLION REVENUE PASSENGER MILES FROM 626 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE TO A DECEMBER RECORD OF 61 UP FROM 57 A YEAR EARLIER FOR ALL OF 1993 DELTA SAID IT FLEW 8286 BILLION REVENUE PASSENGER MILES A 29 RISE FROM 805 BILLION A YEAR EARLIER LOAD FACTOR FOR THE YEAR ROSE TO 62 FROM 61 9401060127 940106 WHO'S NEWS BESSEMER GROUP INC BESSEMER GROUP INC NEW YORK FRANK E HELSOM 51 YEARS OLD WAS NAMED AN EXECUTIVE VICE PRESIDENT AT THE BESSEMER TRUST COS SUBSIDIARY OF THIS BANK HOLDING CONCERN SUCCEEDING WARD CAREY WHO LEFT THE COMPANY MR HELSOM WILL ACT AS SENIOR RESIDENT OFFICER OF THE BESSEMER TRUST CO OF FLORIDA UNIT HE WAS CHAIRMAN AND CHIEF INVESTMENT OFFICER FOR TEMPLETON PORTFOLIO ADVISORY INC AND VICE CHAIRMAN OF TEMPLETON INVESTMENT COUNSEL BOTH COMPANIES ARE DIVISIONS OF TEMPLETON WORLDWIDE AN INVESTMENT FIRM IN FORT LAUDERDALE FLA 9401060126 940106 WHO'S NEWS DIME FINANCIAL CORP DIME FINANCIAL CORP WALLINGFORD CONN RALPH D LUKENS WAS NAMED CHAIRMAN OF THIS BANK HOLDING COMPANY AND ITS DIME SAVINGS BANK UNIT BOTH NEW POSITIONS MR LUKENS 64 YEARS OLD HAD BEEN A DIRECTOR OF BOTH COMPANIES HE IS ALSO PROBATE COURT ADMINISTRATOR FOR THE STATE OF CONNECTICUT 9401060125 940106 SANGSTAT STOCK OPTION EXERCISED MENLO PARK CALIF SANGSTAT MEDICAL CORP SAID ITS UNDERWRITERS HAVE FULLY EXERCISED THEIR OPTION TO PURCHASE AN ADDITIONAL 235714 SHARES TO COVER OVERALLOTMENTS IN CONNECTION WITH THE COMPANY'S INITIAL PUBLIC OFFERING DEC 13 THAT BRINGS THE TOTAL NUMBER OF COMMON SHARES SOLD TO 18 MILLION FOR TOTAL PROCEEDS OF 127 MILLION THE BIOPHARMACEUTICALS CONCERN WILL USE THE MONEY FOR RESEARCH AND DEVELOPMENT AND TO FUND CLINICAL TRIALS 9401060124 940106 DYNCORP WINS NASA CONTRACT RESTON VA DYNCORP SAID IT RECEIVED A FIVEYEAR 97 MILLION CONTRACT TO PROVIDE THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WITH AIRCRAFT MAINTENANCE AND MODIFICATION SERVICES DYNCORP A PROFESSIONAL AND TECHNICAL SERVICES COMPANY SAID THAT ABOUT 230 OF ITS EMPLOYEES WILL SERVICE THE AIRCRAFT ASSOCIATED WITH ASTRONAUT SPACEFLIGHT TRAINING THE COMPANY SAID IT ALSO WILL PROVIDE SUPPORT TO OTHER NASA PROGRAMS 9401060123 940106 RAYTHEON AIR FORCE CONTRACT LEXINGTON MA RAYTHEON CO SAID IT RECEIVED A 2193 MILLION CONTRACT FROM THE AIR FORCE TO BUILD 769 MEDIUMRANGE AIRTOAIR MISSILES RAYTHEON SAID 604 OF THE MISSILES WILL GO TO THE AIR FORCE 45 TO THE NAVY 166 TO THE UNITED KINGDOM 12 TO TURKEY AND 42 TO NORWAY THE MISSILES PRODUCED AT RAYTHEON'S FACILITY IN LOWELL MASS ARE THE PRIMARY MEDIUMRANGE AIRTOAIR WEAPON ON AIR FORCE AND NAVY FIGHTER AIRCRAFT 9401060122 940106 SOUTHWEST AIRLINES LATEST TRAFFIC DALLAS SOUTHWEST AIRLINES SAID ITS DECEMBER TRAFFIC ROSE 20 TO 136 BILLION REVENUE PASSENGER MILES FROM 113 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE IN DECEMBER TO 64 FROM 61 A YEAR EARLIER FOR ALL OF 1993 SOUTHWEST SAID IT FLEW 1671 BILLION REVENUE PASSENGER MILES A 21 RISE FROM 1379 BILLION A YEAR EARLIER LOAD FACTOR FOR THE YEAR ROSE TO 68 FROM 65 9401060121 940106 IVAX CORP PLANS TO BUY MCGAW INC IN A STOCK SWAP BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL IVAX CORP IN YET ANOTHER MOVE TOWARD CONSOLIDATION IN THE HEALTHCARE INDUSTRY SAID IT PLANS TO ACQUIRE MCGAW INC A MEDICAL SUPPLY COMPANY FOR ABOUT 440 MILLION IN STOCK MCGAW STOCKHOLDERS WILL RECEIVE 16 A SHARE IN IVAX COMMON STOCK MCGAW HAS 274 MILLION SHARES OUTSTANDING WHILE IVAX HAS 722 MILLION SHARES OUTSTANDING THE TRANSACTION IS EXPECTED TO CLOSE IN THE FIRST OR SECOND QUARTER OF 1994 UNDER THE AGREEMENT MCGAW WILL BECOME A SUBSIDIARY OF IVAX A SPECIALTY CHEMICAL AND PHARMACEUTICALS HOLDING COMPANY BASED IN MIAMI THE MOVE IS THE LATEST IN A SERIES OF MERGERS IN THE HEALTHCARE INDUSTRY IN THE FACE OF CALLS FOR REFORM MEDICAL PROVIDERS SUPPLIERS AND OTHERS ARE JOINING FORCES TO MEET DEMANDS FOR COSTEFFECTIVE CARE PHILLIP FROST CHAIRMAN OF IVAX CALLED MCGAW AN ATTRACTIVE ACQUISITION BECAUSE OF ITS STRONG DISTRIBUTION NETWORK IN HOSPITALS AND NURSING FACILITIES HE NOTED THAT IVAX HAS ESTABLISHED GOOD RELATIONSHIPS WITH PHARMACIES PHYSICIANS CLINICS AND HEALTH MAINTENANCE ORGANIZATIONS WHEN COMBINED WE CAN MARKET A PACKAGE OF DRUG THERAPY PRODUCTS AND SERVICES THAT ADDRESS A BROAD CONTINUUM OF PATIENT NEEDS DR FROST SAID HE SAID TALKS BETWEEN THE COMPANIES STARTED SEVERAL MONTHS AGO AFTER LEHMAN BROTHERS AN ADVISER TO MCGAW APPROACHED IVAX IVAX IS A HOLDING COMPANY WITH SUBSIDIARIES INVOLVED IN SPECIALTY CHEMICALS PHARMACEUTICALS AND MEDICAL DIAGNOSTICS THE COMPANY HAS MADE A SERIES OF ACQUISITIONS MOST NOTABLY THE PURCHASE LAST SUMMER OF JOHNSON PRODUCTS CO THE BLACKOWNED HAIRPRODUCTS PIONEER FOR ABOUT 61 MILLION IN STOCK THROUGH THE FIRST NINE MONTHS OF 1992 IVAX REPORTED EARNINGS OF 593 MILLION OR 82 CENTS A SHARE ON REVENUE OF 4665 MILLION MCGAW BASED IN IRVINE CALIF IS A PROVIDER OF IV THERAPY PRODUCTS AND SERVICES TO HOSPITALS HOME IV THERAPY PROVIDERS SURGICENTERS AND NURSING FACILITIES THE COMPANY WENT PUBLIC EARLIER THIS YEAR NET INCOME THROUGH THE FIRST NINE MONTHS OF 1992 TOTALED 22 MILLION OR NINE CENTS A SHARE ON REVENUE OF 2457 MILLION NEWS OF THE PLANNED ACQUISITION WAS MADE AFTER MARKETS CLOSED YESTERDAY IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING IVAX CLOSED AT 28125 UP 50 CENTS MCGAW CLOSED AT 1075 A SHARE DOWN 125 CENTS IN NASDAQ STOCK MARKET TRADING 9401060120 940106 LAW LEGAL BEAT MORE AND MORE COMPANIES ASK LAW FIRMS TO BID FOR LEGAL WORK BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL COMPANIES ARE INCREASINGLY ASKING OUTSIDE LAW FIRMS TO BID FOR LEGAL WORK A DEVELOPMENT THAT LAWYERS ARE NONE TOO ENTHUSIASTIC ABOUT THAT'S THE UPSHOT OF A NEW SURVEY OF HOW CORPORATIONS ARE USING REQUESTS FOR PROPOSALS TO DOLE OUT LEGAL ASSIGNMENTS MORE THAN ONETHIRD OF THE COMPANIES THAT RESPONDED SAID THEY HAD BEGUN TO USE THIS PROCEDURE WHICH REPRESENTS A MAJOR DEPARTURE FROM COMPANIES' TRADITIONAL APPROACH OF ROUTINELY AWARDING MOST WORK TO REGULAR OUTSIDE COUNSEL ABOUT 80 OF COMPANIES SAID THEY WOULD INCREASE THEIR USE OF PROPOSALS OVER THE NEXT TWO YEARS IN CONTRAST ONLY 29 OF LAWFIRM RESPONDENTS CONSIDERED THEIR CLIENTS' BIDDING PROCEDURE TO BE AN EFFECTIVE OR VERY EFFECTIVE METHOD OF ASSIGNING LEGAL WORK THE SURVEY WAS CONDUCTED BY OF COUNSEL A NEWSLETTER FOR THE LEGAL PROFESSION ABOUT FIVE YEARS AGO SOME INNOVATIVE INHOUSE LAWYERS BEGAN BORROWING THE REQUESTFORPROPOSAL TECHNIQUES USED BY THE CONSTRUCTION AND DEFENSE INDUSTRIES AND ADAPTED IT FOR THEIR OWN USE THEIR PRIMARY GOAL AT THE TIME WAS TO REQUIRE LARGE LAW FIRMS TO COMPETE ON THE BASIS OF PRICE BUT THE GROWING POPULARITY OF THE BIDDING SYSTEM NOW SEEMS TO OWE NEARLY AS MUCH TO STRATEGY CONCERNS AS TO PRICING ISSUES THESE DAYS INHOUSE LAWYERS TYPICALLY TARGET A HANDFUL OF LAW FIRMS AND REQUIRE THEM TO LAY OUT THEIR LEGAL APPROACH AND STAFFING PLANS FOR A PARTICULAR LEGAL MATTER INHOUSE LAWYERS SAY THEY HAVE ADOPTED THE BIDDING PROCESS BECAUSE IT ENCOURAGES OUTSIDE COUNSEL TO COME UP WITH CREATIVE SOLUTIONS AND GIVES THEM INCENTIVE TO KEEP COSTS DOWN IN THE SURVEY 60 OF THE COMPANIES RESPONDING DESCRIBED THEIR USE OF PROPOSALS AS BEING EITHER EFFECTIVE OR VERY EFFECTIVE I LIKE IT BECAUSE IT CREATES COMPETITION WHICH I THINK FOSTERS INNOVATION AND BETTER STRATEGIES SAYS PETER D ZEUGHAUSER OF IRVINE CO ONE OF THE FIRST GENERAL COUNSEL TO TRY BIDDING OUT WORK IT FORCES THE LAW FIRM TO FOCUS ON COST AND STRATEGY EARLY BEFORE THEY GET THE MATTER AND CAUSES A LOT OF BRAINSTORMING EARLY MR ZEUGHAUSER ADDS THAT HIS COMPANY HAS SAVED MILLIONS OF DOLLARS BY BIDDING OUT WORK YOU WOULD BE SHOCKED AT THE COST DISCREPANCIES IN PROPOSALS HE SAYS THERE ARE SOME VERY AGGRESSIVE COST PROPOSALS MADE NOT SURPRISINGLY LAWFIRM PARTNERS ARE LESS EXCITED BY THE DEVELOPMENT SOME RESPONDENTS SAID THEY FELT THAT CLIENTS DIDN'T ASK THE RIGHT QUESTIONS OF THE LAW FIRMS COMPETING FOR THE WORK OR THAT PROPOSALS PROVIDED NO BASIS ON WHICH TO COMPARE QUALITY ONE CONSTANT GRIPE WHICH GENERAL COUNSEL SAY THEY UNDERSTAND IS THAT DRAFTING PROPOSALS IS TIMECONSUMING AND UNREMUNERATIVE LAW FIRMS AFTER ALL ARE DOING ALL THAT BRAINSTORMING FOR FREE SOMETIMES I THINK THE CLIENTS THAT USE THESE SORTS OF THINGS ARE NOT SENSITIVE TO THE AMOUNT OF TIME AND RESOURCES THAT NEED TO BE DEVOTED SAYS JAMES W JONES MANAGING PARTNER OF ARNOLD & PORTER IN WASHINGTON DESPITE SOME RESERVATIONS MR JONES SAYS HE THINKS PROPOSALS ARE PROBABLY A PRETTY GOOD WAY TO SELECT LAWYERS AS LONG AS A CLIENT IS MINDFUL OF NOT ASKING FOR TOO MUCH UP FRONT JULIE SAVARINO A DETROITBASED MARKETING CONSULTANT WHO COSPONSORED THE OF COUNSEL SURVEY SAYS THE RESULTS SHOW THAT THERE'S A LOT OF DENIAL STILL GOING ON BY LAW FIRMS THAT WOULD PREFER TO AVOID THE BIDDING PROCESS OUTSIDE COUNSEL ARE HOPING THIS WILL GO AWAY SHE SAYS MS SAVARINO NOTES THAT LAW FIRMS ARE TREMENDOUSLY INEFFICIENT IN THE WAY THEY RESPOND TO REQUESTS FOR PROPOSALS FOR EXAMPLE FEWER THAN HALF OF THE FIRMS THAT RESPONDED TO THE SURVEY HAVE A CENTRALIZED OFFICE OR FACILITY FOR PREPARING PROPOSALS AND 17 OF THE FIRMS HAVEN'T KEPT TRACK OF THEIR SUCCESS RATE I LOOK BACK WITH A CERTAIN AMOUNT OF NOSTALGIA TO THE OLD DAYS HE ADDS BUT I DON'T THINK THERE'S MUCH USE IN DOING THAT CALIFORNIA DOCTORS WON AN ORDER TEMPORARILY BLOCKING THE STATE'S MEDICAL BOARD FROM PUBLICLY RELEASING INFORMATION ABOUT CURRENT DISCIPLINARY INVESTIGATIONS SUPERIOR COURT JUDGE RONALD ROBIE IN SACRAMENTO RULED THAT PHYSICIANS' PRIVACY RIGHTS OUTWEIGH THE PUBLIC'S INTEREST IN FINDING OUT ABOUT COMPLAINTS THAT HAVE BEEN FILED AGAINST DOCTORS THE STATE'S MEDICAL BOARD HAD IMPLEMENTED NEW RULES IN OCTOBER ALLOWING DISCLOSURE OF ALLEGATIONS AGAINST A DOCTOR BEFORE A FORMAL DISCIPLINARY CHARGE WAS MADE THE BOARD INVESTIGATES COMPLAINTS AGAINST DOCTORS AND IF APPROPRIATE CAN RECOMMEND THAT THE STATE ATTORNEY GENERAL'S OFFICE ISSUE FORMAL CHARGES THE CALIFORNIA MEDICAL ASSOCIATION A PHYSICIANS GROUP SUED TO BLOCK THE NEW RULE THE MEDICAL BOARD ARGUED IN THE CASE THAT PATIENTS NEED TO KNOW ABOUT ALLEGATIONS BEFORE THE ATTORNEY GENERAL'S OFFICE MAKES A DECISION BECAUSE THE CHARGING PROCESS SOMETIMES TAKES MANY MONTHS BUT JUDGE ROBIE COUNTERED IN HIS PRELIMINARY RULING THAT IF A DOCTOR IS POTENTIALLY DANGEROUS TO PATIENTS THE STATE SHOULD SPEED UP THE INVESTIGATIVE PROCESS A FORMAL TRIAL IN THE CASE IS EXPECTED EARLY THIS YEAR BUT A DATE HASN'T BEEN SET PUBLIC DISCLOSURE OF DISCIPLINARY PROCEEDINGS NOT YET RESOLVED IS NOT A SUBSTITUTE FOR PROMPT EVALUATION OF COMPLAINTS PROMPT DECISIONS BY THE ATTORNEY GENERAL AS TO WHETHER TO PROCEED AND TIMELY IMPOSITION OF DISCIPLINE WHEN WARRANTED THE JUDGE WROTE A REFERRAL TO THE ATTORNEY GENERAL IS MUCH LIKE AN ARREST WITHOUT A CONVICTION CANDIS COHEN A SPOKESWOMAN FOR THE BOARD DISAGREED WITH THE DECISION NOTING THAT ARRESTS GENERALLY ARE MATTERS OF PUBLIC RECORD WHY SHOULD CONSUMERS BEAR THE BURDEN OF A LEGAL SYSTEM THAT DOESN'T OPERATE AS QUICKLY AS WE'D ALL LIKE MS COHEN SAID EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9401060119 940106 IN THE LAB DNA EXPERT PEERS AT CROOKS SOLDIERS LITTLE BIGHORN BONES BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL GERMANTOWN MD IN A LABORATORY THE SIZE OF A KITCHENETTE NEXT TO A REFRIGERATOR FULL OF RAPISTS MURDERERS AND GULF WAR SOLDIERS MARK WADHAMS IS PLAYING WITH LIFE HE IS MAKING COPIES OF DNA OR DEOXYRIBONUCLEIC ACID THE STRING OF MOLECULES THAT COMPRISE GENES AND DISTINGUISH ONE HUMAN FROM ANOTHER THE PEOPLE IN HIS FRIDGE ARE IN DNA FORM IN MINIATURE PLASTIC TESTTUBES HELD BY RACKS IN FLUORESCENT RAINBOW COLORS ONE OF THE PEOPLE MR WADHAMS WON'T SAY WHICH IS IN A THERMOCYCLER A MACHINE WITH CONTROLLED HEAT AND PRESSURE THAT CHEMICALLY DUPLICATES SEGMENTS OF DNA PRODUCING ONE BILLION COPIES OF A SEGMENT IN JUST 2 1/2 HOURS BUT THE 33YEAROLD MOLECULAR BIOLOGIST ISN'T TRYING TO MAKE HIS OWN HUMAN WORKING FOR ZENECA INC'S CELLMARK DIAGNOSTICS LAB HE'S EXPERIMENTING WITH A NEW DNA IDENTIFICATION TECHNOLOGY THAT MAY SOON BE USED TO SOLVE CRIMES AND HISTORICAL RIDDLES WHERE THE PHYSICAL EVIDENCE WAS SO DEGRADED THAT IT COULDN'T BE IDENTIFIED USING STANDARD DNA TESTING SO FAR MR WADHAMS HAS USED THE TECHNOLOGY LICENSED FROM BAYLOR COLLEGE OF MEDICINE IN HOUSTON TO IDENTIFY DECIMATED CORPSES FROM THE GULF WAR THE ARMED FORCES INSTITUTE OF PATHOLOGY SENT HIM SAMPLES FROM REMAINS OF SOLDIERS WHO HAD BEEN BLOWN UP AND FROM SOME THAT WERE SUBMERGED FOR SIX WEEKS IN THE PERSIAN GULF AFTER THEIR PLANE WENT DOWN MR WADHAMS HAD TO SAY WHICH SAMPLES CAME FROM THE SAME BODY SO THE CORRESPONDING REMAINS COULD BE PUT INTO INDIVIDUAL BODY BAGS INSTEAD OF ONE MASS GRAVE MR WADHAMS ISN'T FAZED BY THE GRISLY DETAILS HIS FATHER WAS A POLICEMAN AND HE HIMSELF IS AN AVID FAN OF HORROR MYSTERY WRITERS STEPHEN KING AND DEAN R KOONTZ YOU WORK EVERYTHING ALMOST LIKE A MYSTERY KIND OF THING IT HAS THAT KIND OF INTRIGUE MR WADHAMS SAYS YOU HAVE A RESPONSIBILITY TO GET THE RIGHT ANSWER THE DNA IN THE PERSIAN GULF SAMPLES HAD BEEN DEGRADED BY BACTERIA WATER AND HEAT LEAVING MR WADHAMS WITH SNIPPETS OF THE NECKLACELIKE STRAND OF MOLECULES INSTEAD OF ENTIRE STRANDS NEEDED FOR CONVENTIONAL DNA TESTING HE COPIED OR AMPLIFIED THE DNA IN THE THERMOCYCLER AND THEN ANALYZED IT TO SEE WHERE IT CAME FROM SCIENTISTS ALREADY IDENTIFY DNA USING A METHOD CALLED DQ ALPHA NAMED FOR THE SET OF GENETIC MARKERS FOUND ON EVERYONE'S DNA EACH PERSON HAS ONE OF 21 POSSIBLE COMBINATIONS OF DQ ALPHA MARKERS SOME MORE RARE THAN OTHERS THE TROUBLE WITH THE METHOD IS THAT IT'S NOT PRECISE THE ODDS THAT TWO PEOPLE WILL HAVE THE SAME COMBINATION OF DQ ALPHA MARKERS RANGE FROM 1 TO 20 BAYLOR'S METHOD HOWEVER USES BETWEEN 12 AND 20 GENETIC MARKERS KNOWN AS SHORT TANDEM REPEATS OR STRS EACH MARKER CAN VARY FROM ONE PERSON TO THE NEXT AND THERE ARE ANYWHERE FROM 21 TO ABOUT 256 POSSIBLE VERSIONS OF EACH MARKER THE ODDS THAT TWO PEOPLE WILL HAVE THE SAME FOUR STR MARKERS ARE ABOUT ONE IN FOUR MILLION THE ODDS THAT THEY'LL HAVE THE SAME EIGHT STR MARKERS ARE ONE IN 25 BILLION BASED ON TODAY'S WORLDWIDE POPULATION OF ABOUT FIVE BILLION THAT MEANS THE STR METHOD CAN BE USED TO DETERMINE VIRTUALLY CONCLUSIVELY WHETHER DNA FOUND AT THE SCENE OF A CRIME CAME FROM A PARTICULAR SUSPECT THAT COULD HAVE STRENGTHENED THE CASE FOR LAWRENCE PRESLEY THE HEAD OF THE DNA UNIT AT THE FEDERAL BUREAU OF INVESTIGATION MR PRESLEY ANALYZED DRIED SALIVA FOUND ON THE BACK OF AN ENVELOPE USED TO MAIL TO THE NEW YORK TIMES A LETTER CLAIMING CREDIT FOR THE WORLD TRADE CENTER BOMBING THIS YEAR USING THE DQ ALPHA METHOD MR PRESLEY TESTIFIED IN THE CURRENT FEDERALCOURT TRIAL THAT THE SALIVA COULD HAVE ONLY COME FROM 2 TO 3 OF THE US POPULATION AND THAT IT MATCHED THE DNA FROM ONE OF THE SUSPECTS CHEMICAL ENGINEER NIDAL AYYAD THAT EVIDENCE ISN'T CONCLUSIVE IT'S TECHNICALLY POSSIBLE THE SALIVA CAME FROM SOMEONE ELSE IT'S NEVER A POSITIVE ID MR PRESLEY CONCEDED IN AN INTERVIEW INSTEAD THE FBI'S DNA EVIDENCE MAY HAVE BEEN GOOD CORROBORATION INVESTIGATORS HAVE CONNECTED MR AYYAD TO THE BOMBING WITH OTHER EVIDENCE IF THE FBI HAD USED STR TESTING IT MIGHT HAVE PROVED A MORE POWERFUL CONNECTION BETWEEN THE SALIVA AND THE SUSPECT WITH THE ODDS MILLIONS OR BILLIONS TO ONE THAT HE WAS THE SOURCE CELLMARK DOESN'T USE STR TESTING TO SOLVE CRIMES YET BECAUSE IT HAS TO SCIENTIFICALLY VALIDATE THE METHOD BY USING IT REPEATEDLY ON DIFFERENT TYPES OF PHYSICAL EVIDENCE INCLUDING HAIR BLOOD BONE AND MUSCLE TISSUE THEN THE RESULTS MUST BE PUBLISHED IN A PEERREVIEWED JOURNAL WITHOUT SUCH VALIDATION THE METHOD WOULDN'T BE DEEMED GOOD ENOUGH FOR USE IN COURT CELLMARK HOPES TO USE STR TESTING FOR FORENSIC CASES BY SPRING CRIMESOLVERS CAN HARDLY WAIT CELLMARK ESTIMATES THAT ABOUT 20 OF THE PHYSICAL EVIDENCE IT GETS IN POLICE CASES CAN'T BE ANALYZED USING CURRENT METHODS BECAUSE THERE ISN'T ENOUGH EVIDENCE TO WORK WITH SOME OF THESE COULD BE ANALYZED USING THE STR MARKERS AT THE VERY LEAST STR IDENTIFICATION WOULD GIVE PROSECUTORS ANOTHER PIECE OF EVIDENCE TO HELP CONVICT A SUSPECT ROCKNE HARMON A DEPUTY DISTRICT ATTORNEY IN ALAMEDA COUNTY CALIF SAYS STRS COULD GIVE HIM A MORE POWERFUL LINK IN RAPE CASES WHERE THERE WASN'T MUCH SEMEN TO RECOVER HISTORICAL RIDDLES THE STR METHOD MAY ALSO GIVE RESEARCHERS A BETTER SHOT AT SOLVING HISTORICAL RIDDLES CELLMARK SAYS THAT BASED ON ITS PRELIMINARY RESEARCH THE STR PORTIONS OF DNA MAY RESIST DEGRADATION BETTER THAN THE DQ ALPHA PORTION THAT MEANS IT MAY BE A BETTER METHOD FOR TESTING VERY OLD SAMPLES FOR INSTANCE IT MIGHT BE USED TO ANALYZE DNA IN THE BLOOD ON THE SHIRT PRESIDENT LINCOLN WAS WEARING WHEN HE WAS ASSASSINATED BY DOING THAT RESEARCHERS MAY BE ABLE TO DETERMINE WHETHER MR LINCOLN SUFFERED FROM MARFAN SYNDROME AS HISTORIANS SUSPECT MARFAN SYNDROME IS A CONNECTIVE TISSUE DISORDER LINKED TO HEART AND VISUAL ABNORMALITIES AND ABNORMALLY LONG LEGS AND FINGERS BUT NO DNA LASTS FOREVER LAST YEAR MR WADHAMS TRIED TO ANALYZE DNA FROM THE BONES FOUND AT CUSTER'S LAST STAND AT LITTLE BIGHORN MR WADHAMS RECEIVED A SAMPLE OF THE 118YEAROLD BONES IN THE MAIL AND PULVERIZED THEM WITH A MORTAR AND PESTLE YOU CAN ALSO USE COFFEE GRINDERS HE CONFIDES BUT SAYS HE HAS NEVER DONE SO HIMSELF BUT THAT PART OF HISTORY WILL STAY IN THE DOMAIN OF SPECULATING SCHOLARS AND HOLLYWOOD HE COULDN'T GET ANY DNA AT ALL OUT OF THE BONES HE WAS TOO OLD MR WADHAMS SAYS 9401060118 940106 THE ASSAULT ON ASSAULT WEAPONS BY JAMES BOVARD PRESIDENT CLINTON IS BACKING LEGISLATION THAT COULD LEAD TO THE CONFISCATION OF TENS OF MILLIONS OF PRIVATE RIFLES SHOTGUNS AND PISTOLS THOUGH THE BILL MR CLINTON SUPPORTS PURPORTEDLY TARGETS ONLY ASSAULT WEAPONS THE LOOSE DEFINITIONS AND EXPANSIVE GOALS OF THE ANTIGUN LOBBY WILL ALMOST CERTAINLY LEAD TO A VAST INCREASE IN THE NUMBER OF WEAPONS TO BE BANNED IN NOVEMBER THE SENATE PASSED AN AMENDMENT TO ITS CRIME BILL THAT WOULD BAN OWNERSHIP OF ASSAULT WEAPONS AND A HOUSESENATE CONFERENCE IN THE COMING WEEKS WILL DECIDE THE PROVISION'S FATE MR CLINTON ATTORNEY GENERAL JANET RENO AND FBI DIRECTOR LOUIS FREEH HAVE ALL COME OUT IN FAVOR OF BANNING ASSAULT WEAPONS OTHERS ARE JUMPING ON THE BANDWAGON GOV WILLIAM WELD HAS ENDORSED A BAN IN MASSACHUSETTS AND GOV MARIO CUOMO IS CALLING A SPECIAL SESSION OF THE NEW YORK STATE LEGISLATURE ON MARTIN LUTHER KING DAY FOR THE PURPOSE OF CONSIDERING BANNING ASSAULT WEAPONS IN RECENT YEARS THREE STATES AND DOZENS OF CITIES AND COUNTIES HAVE BANNED OR SEVERELY RESTRICTED THE OWNERSHIP OF ASSAULT WEAPONS ACCORDING TO THE DEFENSE DEPARTMENT AN ASSAULT WEAPON IS A RIFLE THAT IS CAPABLE OF BOTH AUTOMATIC MACHINEGUN FIRE AND SEMIAUTOMATIC ONESHOTPERTRIGGERPULL FIRE BUT MOST BANS FOCUS ON SEMIAUTOMATIC RIFLES AND MEDIA COVERAGE ROUTINELY CONFUSES SEMIAUTOMATIC WITH AUTOMATIC MACHINE GUNS OWNERSHIP OF WHICH HAS BEEN SEVERELY RESTRICTED BY THE FEDERAL GOVERNMENT SINCE 1934 AS A RESULT OF MUDDLED DEFINITIONS OF ASSAULT WEAPONS BANS ON SUCH GUNS HAVE BEEN EXTREMELY ARBITRARY IN 1989 CALIFORNIA BANNED THE SALE OR TRANSFER OF ASSAULT WEAPONS AND REQUIRED ALL EXISTING OWNERS TO REGISTER THEIR GUNS THE CALIFORNIA LAW WAS VERY POORLY DRAFTED CALIFORNIA ATTORNEY GENERAL DAN LUNGREN LATER ADMITTED THAT SOME OF THE GUN MODELS BANNED BY THE CALIFORNIA LEGISLATURE DID NOT EXIST SAN FRANCISCO LAWYER DON KATES SUGGESTED THAT LEGISLATORS IN COMPILING THE LIST OF PROHIBITED GUNS APPEARED TO HAVE SELECTED FROM SOME PICTURE BOOK OF MISLABELED FIREARMS THEY THOUGHT LOOKED EVIL THE VAST MAJORITY OF CALIFORNIANS DID NOT REGISTER THEIR GUNS THUS THE LAW MAY HAVE CREATED AS MANY AS 300000 NEW CRIMINALS ACCORDING TO MICHAEL MCNULTY CHAIRMAN OF THE PRIVATE CALIFORNIA ORGANIZATION FOR PUBLIC SAFETY WE ESTIMATE THAT HUNDREDS OF CITIZENS HAVE BEEN ARRESTED AND PROSECUTED FOR FIREARMS NOT ON THE REGULATED LIST IN NUMEROUS CASES POLICE CARRYING OUT SEARCHES OF PEOPLE'S HOMES HAVE SEIZED WEAPONS THEY ALLEGE TO BE ILLEGAL ASSAULT WEAPONS AND THEN HAVE REFUSED TO RETURN THEM EVEN AFTER RECEIVING PROOF THAT THE GUNS ARE NOT LEGALLY BANNED UNDER CALIFORNIA LAW THE ASSAULT WEAPON BAN WAS ENACTED AFTER POLITICIANS CLAIMED THAT SUCH GUNS WERE A GRAVE PUBLIC MENACE BUT TORREY JOHNSON OF THE CALIFORNIA BUREAU OF FORENSIC SERVICES CONCLUDED IN A CONFIDENTIAL REPORT IT IS OBVIOUS TO THOSE OF US IN THE STATE CRIME LAB SYSTEM THAT THE PRESUMPTION THAT ASSAULT WEAPONS' CONSTITUTE A MAJOR THREAT IN CALIFORNIA IS ABSOLUTELY WRONG SIMILAR TRAVESTIES HAVE HAPPENED ELSEWHERE IN 1989 THE DENVER CITY COUNCIL BANNED DENVER RESIDENTS FROM OWNING OR SELLING SOCALLED ASSAULT WEAPONS RESIDENTS COULD APPLY FOR POLICE PERMISSION TO CONTINUE POSSESSING WEAPONS OBTAINED PRIOR TO THE DATE OF THE BAN DENVER EVEN BANNED RESIDENTS FROM USING ASSAULT WEAPONS FOR SELFDEFENSE IN THEIR OWN HOMES AS IF GOVERNMENT OFFICIALS SOUGHT TO PREVENT CITIZENS FROM HAVING AN UNFAIR ADVANTAGE OVER BURGLARS OR RAPISTS WHO BREAK INTO THEIR HOMES IN FEBRUARY OF LAST YEAR A LOCAL COURT STRUCK DOWN THE LAW AS UNCONSTITUTIONALLY VAGUE AND A VIOLATION OF THE STATE CONSTITUTION IN 1990 NEW JERSEY BANNED OWNERSHIP OF SOCALLED ASSAULT RIFLES GOV JIM FLORIO DECLAIMED THERE ARE SOME WEAPONS THAT ARE JUST SO DANGEROUS THAT SOCIETY HAS A RIGHT AND THE OBLIGATION EVEN TO TAKE THOSE WEAPONS OUT OF CIRCULATION MR CLINTON PRAISED THE NEW JERSEY LAW AS A MODEL FOR THE NATION BUT THE BAN WAS SO EXTENSIVE THAT EVEN SOME MODELS OF BB GUNS WERE OUTLAWED JOSEPH CONSTANCE DEPUTY CHIEF OF THE TRENTON NJ POLICE DEPARTMENT TOLD THE SENATE JUDICIARY COMMITTEE IN AUGUST OF LAST YEAR SINCE POLICE STARTED KEEPING STATISTICS WE NOW KNOW THAT ASSAULT WEAPONS ARE/WERE USED IN AN UNDERWHELMING 026 OF 1 OF CRIMES IN NEW JERSEY THIS MEANS THAT MY OFFICERS ARE MORE LIKELY TO CONFRONT AN ESCAPED TIGER FROM THE LOCAL ZOO THAN TO CONFRONT AN ASSAULT RIFLE IN THE HANDS OF A DRUGCRAZED KILLER ON THE STREETS NEW JERSEY HAS AN ESTIMATED 300000 OWNERS OF ASSAULT WEAPONS EACH POTENTIALLY FACING UP TO FIVE YEARS IN PRISON FOR VIOLATING THE STATE LAW IF THEY DO NOT TURN IN THEIR GUNS NEW YORK CITY REQUIRED RIFLE OWNERS TO REGISTER THEIR GUNS IN 1967 CITY COUNCIL MEMBERS AT THAT TIME PROMISED THAT THE REGISTRATION LISTS WOULD NOT BE USED FOR A GENERAL CONFISCATION OF LAWABIDING CITIZENS' WEAPONS ROUGHLY ONE MILLION NEW YORKERS WERE OBLIGED TO REGISTER WITH POLICE IN 1991 MAYOR DAVID DINKINS RAILROADED A BILL THROUGH THE CITY COUNCIL BANNING POSSESSION OF MANY SEMIAUTOMATIC RIFLES CLAIMING THAT THEY WERE ACTUALLY ASSAULT WEAPONS SCORES OF THOUSANDS OF RESIDENTS WHO HAD REGISTERED IN 1967 AND SCRUPULOUSLY OBEYED THE LAW WERE STRIPPED OF THEIR RIGHT TO OWN THEIR GUNS POLICE ARE NOW USING THE REGISTRATION LISTS TO CRACK DOWN ON GUN OWNERS POLICE SENT OUT THREATENING LETTERS AND POLICEMEN HAVE GONE KNOCKING ON DOORS DEMANDING THAT PEOPLE SURRENDER THEIR GUNS ACCORDING TO STEPHEN HALBROOK A LAWYER AND AUTHOR OF TWO BOOKS ON GUN CONTROL MR HALBROOK NOTES THAT THE NEW YORK BAN PROHIBITS SO MANY GUNS THAT THEY DON'T EVEN KNOW HOW MANY ARE PROHIBITED AND THAT THE LAW IS SO VAGUE THAT THE CITY POLICE ARBITRARILY APPLY IT TO ALMOST ANY GUN OWNER JEROLD LEVINE COUNSEL TO THE NEW YORK RIFLE ASSOCIATION OBSERVED TENS OF THOUSANDS OF NEW YORK VETERANS WHO KEPT THEIR RIFLES FROM WORLD WAR II OR THE KOREAN WAR HAVE BEEN TURNED INTO FELONS AS A RESULT OF THIS LAW EVEN THE PUNY TARGET SHOOTING GUNS IN CONEY ISLAND ARCADES HAVE BEEN BANNED UNDER THE NEW LAW BECAUSE THEIR MAGAZINES HOLD MORE THAN FIVE ROUNDS MANY LOCAL AND STATE ASSAULT WEAPONS LAWS AS WELL AS THE BILL THAT THE SENATE PASSED IN NOVEMBER CONTAIN PROVISIONS APPARENTLY WRITTEN BY PEOPLE SPOOKED AFTER WATCHING TOO MANY ARNOLD SCHWARZENEGGER MOVIES THE SENATE BILL BANS GUNS THAT HAVE GRENADELAUNCHER AND BAYONETMOUNT ATTACHMENTS BUT NEITHER THE JUSTICE DEPARTMENT NOR THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS COULD PROVIDE A SINGLE EXAMPLE OF EITHER GRENADE LAUNCHERS OR BAYONETS ATTACHED TO ASSAULT WEAPONS BEING USED IN ANY VIOLENT CRIME IN THE US GRENADE LAUNCHERS WERE USED BY THE FBI IN THEIR FINAL ASSAULT IN WACO BUT THE FBI WOULD NOT BE AFFECTED BY THE BILL THE ASSAULTWEAPON AMENDMENT SPONSORED BY SEN DIANNE FEINSTEIN D CALIF IS WIDELY PERCEIVED AS A FOOT IN THE DOOR TO FAR MORE EXTENSIVE GUN BANS WHEN A CHRISTIAN SCIENCE MONITOR REPORTER ASKED MS FEINSTEIN WHY HER AMENDMENT DID NOT BAN ALL SEMIAUTOMATIC GUNS SHE REPLIED WE COULDN'T HAVE GOTTEN IT THROUGH CONGRESS REP CHARLES SCHUMER D NY DECLARED WE'LL BE CARRYING THE FEINSTEIN BANNER IN THE HOUSE WHEN IT COMES TO SEMIAUTOMATIC WEAPONS IF ALL SEMIAUTOMATIC GUNS WERE BANNED THE FEDERAL GOVERNMENT COULD CONFISCATE 35 MILLION WEAPONS THE CLINTON ADMINISTRATION HAS TENTATIVELY EMBRACED A PROPOSAL TO REQUIRE ALL GUN OWNERS TO BE LICENSEDWHICH COULD BE A PRELUDE TO THE TYPE OF GUN CONFISCATIONS NOW GOING ON IN NEW YORK ASSAULT WEAPONS LAWS RESEMBLE HATE SPEECH LAWS HATE SPEECH LAWS USUALLY BEGIN BY TARGETING A FEW WORDS THAT ALMOST NO ONE APPROVES ONCE THE SYSTEM FOR CONTROLLING AND PUNISHING HATE SPEECH IS PUT INTO PLACE THERE IS LITTLE OR NOTHING TO STOP IT FROM EXPANDING TO PUNISH MORE AND MORE TYPES OF EVERYDAY SPEECH SIMILARLY ONCE AN ASSAULT WEAPONS LAW IS ON THE BOOKS THERE IS LITTLE TO PREVENT POLITICIANS FROM VASTLY INCREASING THE NUMBER OF WEAPONS BANNED UNDER THE LAW THE MAIN EFFECT OF BANNING ASSAULT WEAPONS IS TO GIVE GOVERNMENT AN EXCUSE TO ARREST OR IMPRISON MILLIONS OF AMERICANS WHILE DOING LITTLE OR NOTHING TO REDUCE CRIME AMERICA HAS A LIMITED NUMBER OF POLICE AND POLITICIANS MUST DECIDE WHO THE REAL PUBLIC ENEMIES ARE IF MR CLINTON SIGNS AN ASSAULT WEAPONS BAN IT COULD SIGNAL THE START OF AN ATTACK ON GUN OWNERS' CONSTITUTIONAL RIGHTS THAT COULD FAR SURPASS ALL PREVIOUS GUN BANS MR BOVARD IS THE AUTHOR OF THE FORTHCOMING LOST RIGHTS THE DESTRUCTION OF AMERICAN LIBERTY ST MARTIN'S APRIL 1994 9401060117 940106 ECONOMY MODEST INTERESTRATE RISE IS SEEN BY ADMINISTRATION WASHINGTON TREASURY SECRETARY LLOYD BENTSEN SAID THE ADMINISTRATION FORESEES SOME MODEST RISE IN SHORTTERM INTEREST RATES AT SOME POINT THOUGH HE WOULDN'T SPECULATE ABOUT THE TIMING OF ANY MOVE BY THE FEDERAL RESERVE I MUST SAY THAT IN OUR PROJECTIONS WE ASSUMED THERE WOULD BE A MODEST INCREASE IN SHORTTERM INTEREST RATES HE SAID BUT I MUST SAY ON THE OTHER SIDE OF IT THAT INFLATION HAS BEEN EVEN BETTER CONTAINED THAN WE ANTICIPATED AND THAT HAS BEEN VERY ENCOURAGING 9401060116 940106 EXSEC OFFICIAL NAMED TO POST BY PRUDENTIAL EMBATTLED BROKERAGE FIRM SELECTS LEE SPENCER 50 TO BE INTERIM COUNSEL BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC IN A MOVE TO SHORE UP ITS EMBATTLED LEGAL DEPARTMENT NAMED A FORMER SECURITIES AND EXCHANGE COMMISSION OFFICIAL TO BE INTERIM GENERAL COUNSEL THE APPOINTMENT OF LEE B SPENCER JR 50 YEARS OLD COMES LESS THAN A WEEK AFTER PRUDENTIAL RELIEVED LOREN SCHECHTER OF HIS DUTIES AS GENERAL COUNSEL THE INTERIM REPLACEMENT IS A STOPGAP MEASURE FOR PRUDENTIAL WHICH WANTED TO ACT QUICKLY TO BRING IN AN OUTSIDE EXECUTIVE NOT INVOLVED IN ITS LIMITEDPARTNERSHIP MESS THE MOVE COMES AT A SENSITIVE TIME FOR THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT THE BIG BROKERAGE FIRM HAS BEGUN REVIEWING CLAIMS FORMS FROM AS MANY AS 340000 INVESTORS LOOKING TO TAP INTO A 330 MILLION RESTITUTION FUND SET UP BY PRUDENTIAL AS PART OF AN OCTOBER SETTLEMENT WITH FEDERAL AND STATE REGULATORS REGULATORS HAD ACCUSED PRUDENTIAL OF WIDESPREAD FRAUD IN SELLING ABOUT 8 BILLION OF PARTNERSHIPS TO INVESTORS IN THE 1980S THE APPOINTMENT ALSO COMES AS FEDERAL PROSECUTORS EXAMINE WHAT ROLE PRUDENTIAL'S LEGAL DEPARTMENT WHICH MR SCHECHTER HEADED HAD IN REVIEWING AND APPROVING PROSPECTUSES SALES DOCUMENTS AND OTHER MARKETING MATERIALS INVOLVED IN SELLING THE PARTNERSHIPS PEOPLE FAMILIAR WITH THE MATTER SAID MR SPENCER A PARTNER AT GIBSON DUNN & CRUTCHER HAS MORE THAN SEVEN YEARS OF EXPERIENCE AT THE SEC INCLUDING STINTS AS DIRECTOR OF THE AGENCY'S DIVISION OF CORPORATE FINANCE AND CHIEF COUNSEL FOR ITS INVESTMENTMANAGEMENT DIVISION HE'S AN OUTSTANDING LAWYER WHO IS VERY KNOWLEDGABLE ABOUT THE FEDERAL SECURITIES LAWS SAID HARVEY PITT A NEW YORK SECURITIES LAWYER BUT MR SPENCER'S SEC EXPERIENCE LARGELY CENTERED ON THE PUBLICOFFERING AREA NOT THE REGULATORY ARENA FOR BROKERAGE FIRMS AND STEPPING INTO THE ROLE ON AN INTERIM BASIS PROVIDES SEVERAL CHALLENGES ONE OF THE POTENTIAL PROBLEMS IS THAT MR SPENCER WILL BE PERCEIVED AS ONLY A CARETAKER WHO HAS NO REAL PERMANENT POWER DESPITE HAVING TO MAKE DECISIONS WITH LONGTERM RAMIFICATIONS FOR THE FIRM SECURITIES LAWYERS SAID HARDWICK SIMMONS PRUDENTIAL SECURITIES' PRESIDENT AND CHIEF EXECUTIVE TOOK PAINS TO PLAY DOWN THOSE RISKS LEE WILL HAVE FULL AUTHORITY HERE MR SIMMONS SAID IN AN INTERVIEW HE WILL STEP IN AND TRY TO BRING HIMSELF UP TO SPEED ON THE EVENTS AT HAND PARTICULARLY THE REGULATORY SETTLEMENT MR SIMMONS SAID PRUDENTIAL WILL NAME A PERMANENT SUCCESSOR TO MR SCHECHTER WITHIN THREE MONTHS MR SIMMONS SAID AMONG THE CANDIDATES WILL BE MR SPENCER PEOPLE FAMILIAR WITH THE MATTER SAID ANOTHER POTENTIAL CANDIDATE IS EDWARD FLEISCHMAN A FORMER SEC COMMISSIONER WHO RESIGNED TWO YEARS AGO AFTER SIX YEARS ON THE PANEL MR FLEISCHMAN DECLINED TO COMMENT IN A STATEMENT MR SIMMONS SAID THAT MR SPENCER'S APPOINTMENT WILL SEND A STRONG MESSAGE THAT WE ARE COMMITTED TO MAINTAINING THE HIGHEST ETHICAL STANDARDS THROUGHOUT THE FIRM AND HAVING THE BEST COMPLIANCE PROGRAMS IN THE INDUSTRY AND THAT WE WILL CONTINUE TO RESOLVE OUR UNFORTUNATE PARTNERSHIP LEGACY FAIRLY AND EXPEDITIOUSLY IN HIS NEW POST MR SPENCER WILL MANAGE THE FIRM'S DAYTODAY LEGAL AND COMPLIANCE ACTIVITIES AND OVERSEE THE REPARATIONS FUND HE WILL CONTROL A STAFF OF 87 LAWYERS THAT HAS BEEN CRITICIZED BY SOME AS NOT MOVING QUICKLY ENOUGH TO SETTLE BIG PARTNERSHIP CASES WITH INVESTORS AS OTHER MAJOR WALL STREET BROKERAGE FIRMS DID AMONG THE FIRM'S GOALS MR SPENCER SAID IN AN INTERVIEW IS FAIRNESS TO CUSTOMERS AND FORMER CUSTOMERS AND CAREFULLY LISTENING TO CUSTOMER CONCERNS HE ADDED WE ARE GOING TO ADDRESS LITIGATION STRATEGY WITH THE GREATEST CARE MR SCHECHTER FOR ONE HAS BEEN BLAMED BY SOME PLAINTIFFS' LAWYERS FOR HARDBALL TACTICS TAKEN BY PRUDENTIAL IN HANDLING MANY ARBITRATION AND COURT CASES INVOLVING THE PARTNERSHIPS IN AN INTERVIEW MR SCHECHTER SAID THE FIRM IS COMMITTED TO ACTING IN AN ENTIRELY FAIR FASHION WITH REGARD TO CLAIMS AGAINST IT MR SCHECHTER'S NEW ROLE WILL BE TO PROVIDE SENIOR COUNSEL TO JOHN MURRAY PRUDENTIAL SECURITIES' DIRECTOR OF CORPORATERISK MANAGEMENT LOREN HAS GOT AN AWFUL LOT IN HIS HEAD MR SIMMONS SAID HE'S NOT SOMEONE WE WANT TO LET GO HERE HE'LL PROVIDE COUNSEL WE NEED GOING AHEAD BUT MR SCHECHTER WON'T PROVIDE DIRECT COUNSEL ON THE REGULATORY REPARATIONS FUND MATTER MR SIMMONS SAID THE FUND IS LEE'S PURVIEW 9401060115 940106 PEPPERAND SALT THEY TYPIFY A THOROUGHBRED PLUS WINGTIPS BLACK AND CORDOVAN CLOTHES MAKE THE MAN A GOOD DEAL POORER THIS SMALL ASSIST I FEED IT AND THEN FORGET TO READ IT 9401060114 940106 BOTTOMLINE ACTIVISM OF CALPERS PAYS OFF NEW STUDY INDICATES BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM AT LAST SEEMS TO HAVE DISCOVERED HOW TO PROFIT FROM SHAREHOLDER ACTIVISM FOCUS ON THE BOTTOM LINE IT MAY SOUND LIKE OLDFASHIONED INVESTMENT SENSE BUT THE 80 BILLION CALIFORNIA FUND THE NATION'S LARGEST PENSION PLAN FOR STATE EMPLOYEES ONLY REVAMPED ITS SHAREHOLDERRIGHTS CRUSADE IN 1990 TO FOCUS ON ENSURING BETTER OPERATING PERFORMANCE AT COMPANIES IN WHICH IT INVESTS A NEW STUDY ONE OF THE FIRST REPORT CARDS EVER OF THE LONGTERM EFFECTIVENESS OF CALPERS'S CORPORATEGOVERNANCE ACTIVITIES INDICATES THAT THE FUND'S BACKTOBASICS APPROACH IS PAYING OFF SHARES OF COMPANIES THE FUND HAS PRESSURED TO IMPROVE OPERATING PERFORMANCE ARE HANDILY BEATING THE STANDARD & POOR'S 500 INDEX ACCORDING TO THE STUDY BY WILSHIRE ASSOCIATES INC A PENSIONCONSULTING FIRM BEFORE THE 1990 STRATEGY CHANGE CALPERS'S ACTIVISM CONSISTED OF RAPPING CORPORATE KNUCKLES OVER POISON PILLS AND OTHER ANTITAKEOVER DEVICES UNDER THAT APPROACH THE INVESTMENT PERFORMANCE OF A MAJORITY OF CALPERS'S TARGETS EITHER CONTINUED TO UNDERPERFORM OR ACTUALLY DETERIORATED ONCE THE FUND PRODDED THEM TO SHAPE UP THE DATA SHOW SINCE CALPERS STARTED BECOMING INVOLVED IN LONGTERM OPERATING PERFORMANCE ISSUES THEIR SABERRATTLING IS PRODUCTIVE SAYS STEPHEN NESBITT A SENIOR VICE PRESIDENT AT WILSHIRE WHO WROTE THE STUDY ALTHOUGH CALPERS IS A CLIENT OF WILSHIRE ACCOUNTING FOR ABOUT 1 OF THE CONSULTING FIRM'S REVENUE IT WASN'T INVOLVED IN FINANCING THE STUDY TAKE THE EXAMPLE OF SEARS ROEBUCK & CO ONE OF THE FIRST COMPANIES TO RECEIVE CALPERS'S REVISED TREATMENT THE COMPANY'S STOCK TRAILED THE S&P 500 INDEX BY A CUMULATIVE 102 PERCENTAGE POINTS ON A TOTALRETURN BASIS INCLUDING PRICE CHANGE PLUS DIVIDENDS IN THE FIVE YEARS BEFORE THE FUND CAME KNOCKING IN 1990 SINCE THEN THE COMPANY HAS OUTPERFORMED THE S&P 500 BY 130 PERCENTAGE POINTS OTHER BIG WINNERS UNDER THE NEW APPROACH INCLUDE AMERICAN EXPRESS CO NORTHROP CORP ITT CORP HERCULES INC AND CHRYSLER CORP ACCORDING TO WILSHIRE TO BE SURE SOME TARGETS OF CALPERS'S NEW ACTIVISM INCLUDING WESTINGHOUSE ELECTRIC CORP FAILED TO OUTPERFORM THE MARKET DESPITE THE FUND'S BEST EFFORTS BUT EVEN SUCH SOSO RESULTS ARE A BIG IMPROVEMENT FROM PRIOR YEARS AS A GROUP THE 24 STOCKS TARGETED BY CALPERS SINCE THE 1990 POLICY CHANGE HAVE RACKED UP AVERAGE CUMULATIVE TOTAL RETURNS THAT ARE 109 PERCENTAGE POINTS AHEAD OF THE S&P 500 INDEX THE DATA SHOW THOSE SAME STOCKS LAGGED THE INDEX BY AN AVERAGE 86 PERCENTAGE POINTS BEFORE CALPERS STARTED AGITATING FOR BETTER OPERATING RESULTS THE PERFORMANCE DATA PROVE THAT CALPERS OFFICIALS AREN'T JUST BEATING THEIR CHESTS AND STIRRING THINGS UP SAYS MR NESBITT SUCH IMPROVED PERFORMANCE IS AN IMPORTANT AFFIRMATION OF CALPERS'S ACTIVISM WHOSE WHOLE POINT AFTER ALL IS TO IMPROVE THE FUND'S OWN BOTTOM LINE BECAUSE CALPERS'S PORTFOLIO IS SO VAST IT CAN'T DUMP UNDERPERFORMING SHARES WITHOUT DISRUPTING THE MARKET THE PENSION FUND'S PERMANENT OWNER STATUS SUGGESTS THAT THE ONLY WAY IT CAN RAISE ITS OWN STOCK RETURNS IS TO HELP REMEDY PROBLEMS AT THE COMPANIES THEMSELVES TO BACK UP CONCERNS ABOUT POOR PERFORMANCE THE CALIFORNIA FUND IN 1990 STARTED PAYING OUTSIDE RESEARCH FIRMS TO DO BUSINESS AUDITS OF TROUBLED COMPANIES WHICH IT SHARES WITH MANAGEMENT IN MANY CASES CALPERS ALSO PRESSED COMPANIES TO INSTALL MORE INDEPENDENT DIRECTORS ESPECIALLY ON IMPORTANT BOARD COMMITTEES BEFORE THAT POLICY SHIFT CALPERS'S EFFORTS HAD BEEN CRITICIZED FOR MEDDLING IN CORPORATE AFFAIRS AT THE EXPENSE OF THE FUND'S OWN BENEFICIARIES WHILE THE OLD STRATEGY OFTEN GENERATED BRIEF JUMPS IN STOCK PRICES IT DIDN'T ADDRESS MORE SERIOUS SHORTCOMINGS IN LONGTERM PERFORMANCE ON AVERAGE THE 18 STOCKS CALPERS TARGETED UNDER THE OLD POLICY CONTINUED TO LAG BEHIND THE INDEX BY SIX PERCENTAGE POINTS IN THE SUBSEQUENT FIVE YEARS IN MORE THAN A QUARTER OF THE PRE1990 CASES CALPERS'S EFFORTS BACKFIRED FOR EXAMPLE CONSOLIDATED FREIGHTWAYS INC WAS A STOCKMARKET LAGGARD BEFORE THE PENSION FUND ARRIVED ON THE SCENE IN 1988 BUT ITS RESULTS RAPIDLY DETERIORATED AFTER CALPERS TRIED TO FORCE IT TO DROP ITS POISON PILL A ANTITAKEOVER DEVICE THAT PROTECTS ENTRENCHED MANAGEMENT OFTEN TO THE DETRIMENT OF SHAREHOLDERS CONSOLIDATED FREIGHTWAYS' TOTAL RETURN FELL 139 PERCENTAGE POINTS BEHIND THE S&P 500 IN THE FIVE YEARS AFTER CALPERS BECAME INVOLVED COMPARED WITH ONLY 30 PERCENTAGE POINTS IN THE PRIOR FIVE YEARS THE DATA SHOW WHILE WILSHIRE'S STUDY IS ADJUSTED FOR FACTORS THAT COULD BIAS ITS RESULTS SUCH AS COMPANY SIZE RISK INDUSTRY CONCENTRATION AND GROWTH AND VALUE CHARACTERISTICS THE FIRM IS CAREFUL TO ALLOW THAT CALPERS'S REVISED ACTIVISM ALONE MAY NOT HAVE SPURRED THE IMPROVEMENT STATISTICALLY WE CAN'T PROVE THAT THE CAUSE IS CALPERS INVOLVEMENT MR NESBITT SAYS BUT WE HAVE A STRONG ASSOCIATION BETWEEN THE CALIFORNIA FUND'S PRESENCE AND THE STOCKS' TURNAROUNDS CALPERS FOR ITS PART IS SHY ABOUT TAKING CREDIT THIS REPORT SHOULD NOT BE TAKEN THAT WE WERE THE KEY TO THE TURNAROUND IN EVERY CIRCUMSTANCE SAYS RICHARD KOPPES THE FUND'S GENERAL COUNSEL 9401060112 940106 WHO'S NEWS USLIFE CORP USLIFE CORP NEW YORK DANIEL W ARNOLD 39 YEARS OLD WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT OPERATIONS AT THE USLIFE CREDIT LIFE INSURANCE CO UNIT OF THE INSURANCE HOLDING COMPANY MR ARNOLD WAS PREVIOUSLY VICE PRESIDENT OPERATIONS AT THE UNION FIDELITY LIFE INSURANCE CO UNIT OF AON CORP A CHICAGOBASED INSURANCE HOLDING COMPANY 9401060111 940106 INTERNATIONAL NORTH KOREA US REACH AGREEMENT OPENING NUCLEAR SITES TO INSPECTION BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NORTH KOREA AND THE US HAVE REACHED AN AGREEMENT IN PRINCIPLE THAT WOULD OPEN THE ISOLATED NATION'S SEVEN DECLARED NUCLEAR RESEARCH SITES TO INTERNATIONAL INSPECTION LYNN DAVIS AN UNDERSECRETARY AT THE STATE DEPARTMENT SAID THAT NORTH KOREA WILL OPEN TALKS WITH THE INTERNATIONAL ATOMIC ENERGY AGENCY WITHIN THE NEXT FEW DAYS TO GO OVER THE DETAILS OF THE INSPECTION WHICH WILL BE THE FIRST FULL STUDY OF THE SITES SINCE LAST FEBRUARY THE ARRANGEMENT FALLS SHORT OF THE ADMINISTRATION'S ORIGINAL GOAL OF GETTING NORTH KOREA TO REAFFIRM ITS OBLIGATIONS TO THE NUCLEAR NONPROLIFERATION TREATY WHICH REQUIRES A NATION TO SUBMIT TO PERIODIC INSPECTIONS OF NUCLEAR SITES HOWEVER PRESIDENT CLINTON AND OTHER ADMINISTRATION OFFICIALS YESTERDAY DENIED A NEWS ACCOUNT THAT SUGGESTED THE US HAS RETREATED FROM THAT GOAL WE DIDN'T SETTLE FOR LESS MR CLINTON TOLD A GROUP OF JOURNALISTS SIMILARLY MS DAVIS SAID WE HAVE NOT BACKED DOWN IN TERMS OF ANY OF OUR DEMANDS EXPLAINING THAT THE INSPECTION IS ONE OF TWO INTERIM STEPS THE US HAS REQUIRED BEFORE UNDERTAKING A THIRD ROUND OF MORE GENERAL TALKS WITH NORTH KOREA THE TALKS PROBABLY WILL BE HELD IN GENEVA NEXT MONTH OR AS SOON AS THE RESULTS OF THE INSPECTION ARE KNOWN THOSE TALKS WOULD INCLUDE THE POSSIBILITY OF INSPECTING TWO CONTROVERSIAL ADDITIONAL SITES SEPARATELY ADMINISTRATION SOURCES TRIED TO CREATE SOME FLEXIBILITY IN THE US'S PUBLIC STANCE TOWARD NORTH KOREA A SENIOR ADMINISTRATION OFFICIAL SAID MR CLINTON MISSPOKE IN NOVEMBER WHEN HE SAID THAT NORTH KOREA CANNOT BE ALLOWED TO DEVELOP A NUCLEAR BOMB INSTEAD THE OFFICIAL SAID THE US POSITION IS THAT NORTH KOREA CAN'T DEVELOP ITS NUCLEAR CAPABILITY ANY FURTHER AND MUST BE OPEN TO FULL INSPECTION REGARDING THE OTHER INTERIM STEP MS DAVIS SAID THAT NORTH KOREA IS PREPARING TO CONTINUE ITS OFFAGAINONAGAIN DIALOGUE WITH SOUTH KOREA AS PART OF THE AGREEMENT IN RETURN THE US HAS SAID IT WOULD CANCEL TEAM SPIRIT AN ANNUAL EXERCISE BETWEEN US TROOPS AND THE SOUTH KOREAN ARMY DESIGNED TO PRACTICE RAPID REINFORCEMENT OF THE PENINSULA IN CASE OF AN ATTACK FROM THE NORTH THE COMING IAEA INSPECTION IS INTENDED TO GIVE THE AGENCY THE OPPORTUNITY TO MAKE SURE THAT NONE OF THE SITES IT REGULARLY INSPECTS HAS CHANGED SINCE FEBRUARY THE AGENCY ALSO WOULD REPLACE SEALS BATTERIES AND VIDEOCASSETTES IN EQUIPMENT IT USES FOR REMOTE MONITORING OF ACTIVITY AT THE SITES ONE OFFICIAL SAID THE US HASN'T PERSUADED NORTH KOREA TO RESUME HIGHLEVEL TALKS WITH SOUTH KOREA ONLY TALKS AT THE WORKINGGROUP LEVEL CURRENTLY HIGHLEVEL CONTACTS BETWEEN THE TWO COUNTRIES ARE APPROACHING WHAT MAY BE A NEW LOW A NORTH KOREAN NEWSPAPER CONTROLLED BY THE GOVERNMENT ATTACKED SOUTH KOREA'S PRESIDENT THIS WEEK FOR MAKING REMARKS ABOUT THE NORTH'S ALLEGED NUCLEAR WEAPONS PROGRAM THE TRAITOR KIM YOUNGSAM HAD BETTER ACT WITH DISCRETION MINDFUL THAT HIS TREACHEROUS UTTERANCES AT THE BEGINNING OF THE YEAR WILL ONLY LEAD HIM MORE QUICKLY TO HIS GRAVE ONCE THE STATUS OF NORTH KOREA'S RESEARCH SITES IS KNOWN US OFFICIALS WILL MEET WITH THEIR NORTH KOREAN COUNTERPARTS IN GENEVA FOR A WIDERANGING DISCUSSION THAT WILL BEGIN WITH AN ATTEMPT BY THE US TO GET THE STALINIST STATE TO REAFFIRM ITS OBLIGATIONS UNDER THE TREATY THEY INCLUDE ALLOWING THE IAEA TO CONDUCT PERIODIC REGULAR INSPECTIONS AS WELL AS SPECIAL INSPECTIONS OF SUSPICIOUS UNDECLARED SITES THERE ARE TWO AREAS THAT THE IAEA BELIEVES ARE WASTE SITES THAT CONTAIN EVIDENCE OF NORTH KOREA'S EFFORTS TO DRAW OFF PLUTONIUM FROM ITS RESEARCH REACTOR FUEL TO MAKE NUCLEAR WEAPONS NORTH KOREA TRIGGERED THE INTERNATIONAL FUROR OVER ITS YONGBYON FACILITY IN FEBRUARY WHEN IT DENIED IAEA INSPECTORS ACCESS TO THE SUSPECTED WASTE SITES A MONTH LATER IT ANNOUNCED IT WAS WITHDRAWING FROM THE TREATY SOMETHING NO OTHER NATION HAS DONE IN JUNE THE US GOT NORTH KOREA TO AGREE TO SUSPEND THE WITHDRAWAL US OFFICIALS BELIEVE THAT NORTH KOREA MAY HAVE ENOUGH PLUTONIUM TO MAKE ONE OR TWO NUCLEAR WEAPONS WHETHER THEY HAVE DONE THAT HOWEVER IS A SUBJECT OF WIDERANGING DISPUTES AMONG THE EXPERTS ONE THEORY IS THAT NORTH KOREA MAY HAVE A RUDIMENTARY BOMB BUT THAT IT IS TOO HEAVY TO DELIVER EXCEPT BY BARGE OR TRUCK THERE HAVE BEEN REPORTS FROM DIPLOMATS AND OTHERS WITH CONTACTS IN PYONGYANG THAT NORTH KOREAN DICTATOR KIM ILSUNG AND HIS LEADERSHIP ARE PREPARED TO MAKE CONCESSIONS PERHAPS EVEN GIVING UP THE NATION'S NUCLEAR PROGRAM IN EXCHANGE FOR DESPERATELY NEEDED AID FROM THE WEST THERE HAVE ALSO BEEN REPORTS THAT NORTH KOREA HAS ACCEDED TO ANOTHER US DEMAND AND CANCELED ITS PROPOSED SALE OF LONGRANGE NODONG1 MISSILES TO IRAN A US OFFICIAL SAID REPORTS OF THE CANCELLATION HAVEN'T BEEN CONFIRMED 9401060110 940106 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG OVER THE HOLIDAYS LOTS OF PEOPLE GOT NEW COMPUTERS WITH MODEMS ESSENTIALLY TELEPHONES USED TO TRANSMIT AND RECEIVE COMPUTER DATA THOSE LUCKY ENOUGH TO HAVE THEM HOOKED UP PROPERLY BY NOW PROBABLY ARE ANXIOUS TO FIGURE OUT WHAT TO DO WITH THEM IT'S BEEN A WHILE SINCE I'VE REVIEWED THE MAJOR COMMERCIAL ONLINE SERVICES THOSE HUGE REPOSITORIES OF NEWS DATA AND ELECTRONIC MESSAGES YOU REACH THROUGH YOUR MODEM IN THE PAST SIX MONTHS OR SO COMPETITION AMONG THESE SERVICES HAS HEATED UP FIERCELY WITH NEW FEATURES AND PRICES SO HERE'S A BRIEF UPDATE ON THE BIG THREE GENERALINTEREST CONSUMER SERVICES COMPUSERVE AMERICA ONLINE AND PRODIGY AS WELL AS NEWS ON SOME NEW COMPETITORS SCHEDULED TO SHOW UP THIS YEAR COMPUSERVE STILL HAS THE RICHEST OFFERINGS BUT IT HAS BEEN THE SLOWEST TO CHANGE AND CAN BE MUCH COSTLIER THAN THE OTHER TWO SERVICES ESPECIALLY IF YOU MAKE HEAVY USE OF SOME OF ITS BEST FEATURES THE 15YEAROLD SERVICE OWNED BY H&R BLOCK CLAIMS 16 MILLION SUBSCRIBERS IT HAS ADDED RELATIVELY FEW SIGNIFICANT FEATURES TO ITS TRADITIONAL CORE OF NEWS AND FORUMS BULLETIN BOARDS THAT ARE ESPECIALLY STRONG ON COMPUTER ADVICE AND SUPPORT THE MOST IMPORTANT RECENT ADDITION HAS BEEN AN ONLINE EDITION OF THE WEEKLY MAGAZINE US NEWS AND WORLD REPORT BUT A NUMBER OF INTERESTING THINGS ARE IN THE WORKS INCLUDING ACCESS TO PARTS OF THE INTERNET NETWORK AND A WINDOWS PROGRAM CALLED NAVIGATOR THAT LETS YOU SCAN THE SYSTEM QUICKLY AND SO SAVE MONEY COMPUSERVE MEMBERS PAY 895 A MONTH FOR UNLIMITED ACCESS TO NEWS WEATHER SPORTS STOCK QUOTES AND BASIC REFERENCES USING ANYTHING ELSE INCLUDING THE VALUABLE FORUMS COSTS A STIFF 8 AN HOUR AT STANDARD MODEM SPEEDS AND A TRULY PAINFUL 16 AN HOUR FOR HIGHSPEED MODEMS IT ALSO COSTS EXTRA TO SEND MORE THAN 60 ELECTRONIC MAIL MESSAGES MONTHLY AND TO RECEIVE ELECTRONIC MAIL FROM PEOPLE ON OTHER SERVICES BUT THE SERVICE IS ADDING SOME LOWERCOST TECHNOLOGY THAT MAY ALLOW PRICE CUTS THIS YEAR AMERICA ONLINE AOL REMAINS THE HOTTEST EASIESTTOUSE AND MOST INTERESTING OF THE SERVICES DURING 1993 THE UPSTART SYSTEM MORE THAN DOUBLED ITS MEMBERSHIP HITTING 500000 DUE TO AGGRESSIVE PRICING AND THE INTRODUCTION OF MANY FEATURES AOL OFFERS TIME MAGAZINE ONLINE AS WELL AS THE ATLANTIC MONTHLY THE CHICAGO TRIBUNE AND FEATURES PROVIDED BY NATIONAL PUBLIC RADIO AND CSPAN AMONG OTHERS IT EVEN HAS INTRODUCED A USERFRIENDLY WAY TO REACH PARTS OF THE VAST BUT COMPLEX INTERNET ONLINE SYSTEM WHEN IT COMES TO BASIC NEWS AND REFERENCE SERVICES AMERICA ONLINE LAGS BEHIND ITS COMPETITORS BUT THE COMPANY SAYS IT HAS DEALS IN THE PIPELINE TO REMEDY THAT OVER THE NEXT FEW MONTHS ALSO ITS EXPLOSIVE GROWTH HAS CAUSED PROBLEMS DURING THE PAST FEW MONTHS THE SERVICE HAS CRAWLED AT TIMES THOUGH IT SEEMS TO HAVE RECOVERED LATELY AMERICA ONLINE CHARGES 995 A MONTH FOR THE FIRST FIVE HOURS YOU'RE CONNECTED REGARDLESS OF MODEM SPEED OR THE FEATURES YOU USE WITH A FEW MINOR EXCEPTIONS AFTER THAT IT'S 350 AN HOUR ELECTRONIC MAIL IS FREE PERIOD PRODIGY A JOINT VENTURE OF IBM AND SEARS ROEBUCK FINALLY HAS STARTED TO IMPROVE ITS GARISH JUMBLED LOOK AND CONFUSING SYSTEM FOR NAVIGATING AMONG FEATURES THE NEW MAIN SCREENS ARE CLEANER AND SIMPLER WITH BLACK TEXT ON WHITE INSTEAD OF THE AWFUL COLORED TEXT ON BLACK AND COLORCODED BUTTONS TO TAKE YOU TO VARIOUS FEATURES AND ADS THAT HIDE THEIR GAUDY GRAPHICS UNLESS YOU ASK TO SEE THEM THERE'S ALSO A WINDOWS VERSION OF THE PRODIGY SOFTWARE WITH MENUS AND A COMPANION PROGRAM THAT LETS YOU COMPOSE AND READ ELECTRONIC MAIL OFFLINE THAT'S THE GOOD NEWS BUT THE BAD NEWS IS THAT THE IMPROVEMENTS AFFECT ONLY A SMALL MINORITY OF PRODIGY'S SCREENS SO FAR AND THE NEW LOOK WAS ACCOMPANIED BY STIFF PRICE INCREASES PRODIGY'S NEW PRICING STRUCTURE IS COMPLEX AND CAN GET EXPENSIVE THE SERVICE CHARGES A STANDARD FLAT FEE OF 1495 A MONTH FOR UNLIMITEDUSE CORE SERVICES SUCH AS NEWS AND REFERENCE BUT BULLETIN BOARDS COST 360 AN HOUR AFTER THE FIRST TWO HOURS AND ELECTRONIC MAIL COSTS EXTRA AFTER 30 MESSAGES A MONTH THERE ALSO ARE EXTRA CHARGES FOR SOFTWARE DOWNLOADING AND CERTAIN PREMIUM GAMES AND FINANCIAL FEATURES AND YOU CAN ONLY SEND EMAIL TO PEOPLE ON OTHER SYSTEMS WITH THE OFFLINE MAIL PROGRAM PRODIGY NOW OFFERS FEATURES IN WHICH CABLE TV NETWORKS WILL POST VIEWER INFORMATION AFTER LOSING MEMBERS LAST SUMMER DUE TO THE PRICE RISES THE SERVICE CLAIMS TO HAVE RECOVERED TO ABOUT A MILLION HOUSEHOLD SUBSCRIPTIONS WITH ABOUT TWO MILLION USERS SOME NEW SERVICES ARE DUE TO ENTER THE FRAY THIS YEAR APPLE COMPUTER PLANS A SERVICE CALLED EWORLD WHICH LETS USERS NAVIGATE AMONG FEATURES USING A 3D MAP OF A FICTIONAL TOWN IN WHICH THE BUILDINGS REPRESENT THE SECTIONS OF THE SERVICE EWORLD WILL ONLY BE AVAILABLE ON APPLE'S MACINTOSH COMPUTERS AT FIRST BUT AN IBMCOMPATIBLE VERSION IS PLANNED AT&T ALSO IS BELIEVED TO BE ABOUT TO LAUNCH AN ONLINE SERVICE BUILT AROUND EMAIL MICROSOFT IS WORKING ON ANOTHER SERVICE THAT MAY DEBUT IN LIMITED FASHION LATE THIS YEAR AND A MAJOR TRADEMAGAZINE PUBLISHER IS READYING A NEW SERVICE MAINLY FOR PEOPLE INTERESTED IN COMPUTERS SO KEEP THOSE MODEMS OILED AND READY BUT HAVE YOUR WALLET OPEN THERE'S A LOT TO DO OUT THERE ON THE COMMERCIAL LANES OF THE INFORMATION HIGHWAY IF YOU'RE WILLING TO PAY THE TOLLS 9401060109 940106 CHYRON BONDS CONVERTED BY PESA MELVILLE NY CHYRON CORP SAID ITS LARGEST SHAREHOLDER PESA INC CONVERTED 28 MILLION IN NOTES INTO CHYRON'S COMMON STOCK AND RESOLD THE 14 MILLION SHARES TO EUROPEAN INVESTORS THE NOTES HAD A CONVERSION RATE OF 20 CENTS A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CHYRON SHARES WERE UNCHANGED AT 625 CENTS YESTERDAY AS PART OF CHYRON'S REORGANIZATION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE THE VIDEO GRAPHICS EQUIPMENT MAKER HAD SOLD 5 MILLION IN FOURYEAR CONVERTIBLE NOTES TO PESA A SPANISH BROADCAST ELECTRONICS COMPANY IN THE BANKRUPTCYLAW PROCEEDINGS PESA SAID IT WOULD RESELL THE NOTES OR THE UNDERLYING SHARES WITH THE LATEST TRANSACTION PESA WHICH HOLDS 69 OF CHYRON'S SHARES HAS RESOLD 48 MILLION OF THE NOTES 9401060105 940106 REVIEW & OUTLOOK EDITORIAL ASIDES KILLJOYS RECESSIONWEARY CALIFORNIANS AT LEAST CAN CONSOLE THEMSELVES WITH THE FACT THAT THEIR AIR IS GETTING CLEANER ALL THE FASTER WITHOUT SO MUCH COMMERCE GOING ON THE FLIP SIDE OF THE STORY IS FOUND IN COLORADO WHERE MANY ARE MOVING FOR A BETTER LIFE MONSTER SMOG WOES LOOM HEADLINES THE DENVER POST WITH THE INFLUX OF DRIVERS BLAMED ACTUALLY BOTH PARTS OF THE COUNTRY HAVE DRAMATICALLY IMPROVED THEIR POLLUTION RECORDS IN RECENT YEARS BUT IT'S STILL EASY TO TRIP OVER THE EXCEEDINGLY LOW THRESHOLDS UNDER THE NEW CLEAN AIR ACT HEAVY SANCTIONS FOLLOW THE POST WARNS WILL WASHINGTON CUDGEL COLORADO'S COMEBACK 9401060104 940106 BUSINESS BRIEF AMDAHL CORP COMPUTER FIRM TO DEVELOP MAINFRAMES WITH FUJITSU AMDAHL CORP SEEKING TO CUT ITS RESEARCH AND DEVELOPMENT COSTS SAID IT AND FUJITSU LTD WILL TEAM UP TO JOINTLY DEVELOP BOTH COMPANIES' NEXT GENERATION OF MAINFRAME COMPUTERS AMDAHL'S COMPUTERS WILL BE COMPATIBLE WITH INTERNATIONAL BUSINESS MACHINES CO SYSTEMS FUJITSU'S WILL RUN THEIR OWN OPERATING SYSTEM AMDAHL AND FUJITSU HAVE COLLABORATED IN THE PAST AMDAHL SUNNYVALE CALIF IS A MAINFRAME COMPUTER MAKER FUJITSU BASED IN TOKYO IS A TELECOMMUNICATIONS SEMICONDUCTOR AND ELECTRONICS CONCERN THAT OWNS 44 OF AMDAHL 9401060103 940106 BUSINESS BRIEF BECHTEL GROUP INC UNIT WINS CONTRACT TO BUILD OFFICE COMPLEX IN THAILAND BECHTEL GROUP INC'S BECHTEL CIVIL CO UNIT SAID IT WON A THREEYEAR CONTRACT VALUED AT MORE THAN 200 MILLION TO BUILD A LUXURY OFFICE COMPLEX THAT WILL BE THE TALLEST BUILDINGS IN BANGKOK THAILAND THE 33 MILLIONSQUAREFOOT EMPIRE TOWERS BEING BUILT FOR THAIHONG KONG REAL ESTATE LTD WILL INCLUDE THREE INTERCONNECTED TOWERS OF 62 58 AND 54 FLOORS THE COMPLEX WILL INCLUDE 15 FLOORS OF PARKING THAT CAN FIT AS MANY AS 2700 CARS CONSTRUCTION BEGAN LAST WEEK AND IS EXPECTED TO BE COMPLETE BY LATE 1996 BECHTEL GROUP SAN FRANCISCO IS A LARGE ENGINEERING CONSTRUCTION AND MANAGEMENT COMPANY 9401060102 940106 ON MACY FUND MANAGER SPEAKS LOUDLY BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL THE FUTURE OF RH MACY & CO WILL DEPEND HEAVILY ON DANIEL HARMETZ A 31YEAROLD MONEY MANAGER LITTLE KNOWN OUTSIDE THE ARCANE WORLD OF BANKRUPTCY INVESTING MR HARMETZ WHO SHARES THE RESPONSIBILITY FOR RUNNING FIDELITY INVESTMENTS' CAPITAL & INCOME FUND HAS BEEN THE MOST VOCAL AGITATOR BEHIND THE SCENES DURING MACY'S BANKRUPTCY PROCEEDING AT HIS URGING FIDELITY HAS ACCUMULATED A 490 MILLION POSITION HELD BY A HANDFUL OF THE BOSTONBASED FUND GROUP'S MUTUAL FUNDS THAT MAKES FIDELITY THE RETAILER'S SECONDLARGEST CREDITOR BEHIND FEDERATED DEPARTMENT STORES INC A FORMER BANKRUPTCY LAWYER WHO FIRST BECAME INTERESTED IN BANKRUPTCY INVESTING WHILE AN UNDERGRADUATE AT THE UNIVERSITY OF CALIFORNIA IN BERKELEY MR HARMETZ MANAGES A TOTAL OF 3 BILLION HE MADE HIS NAME DABBLING IN THE DEBT OF DISTRESSED CASINO PROPERTIES MACY IS HIS FIRST BIG BET ON A RETAILER DRAWN TO WHAT HE HOPED WOULD BE A QUICK TURNAROUND OF A FAMOUS NAME MR HARMETZ BEGAN AGGRESSIVELY PUSHING FOR MACY'S EMERGENCE FROM BANKRUPTCY COURT WITHIN DAYS OF ITS JANUARY 1992 FILING FOR PROTECTION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE HE MET WITH REPRESENTATIVES OF THE RETAILER TO URGE A SPEEDY RESOLUTION AT THE SAME TIME HE BEGAN VISITING RIVAL RETAILERS AND OTHER SOCALLED VULTURE INVESTORS WHO PREY ON TROUBLED COMPANIES IN THE HOPES OF SPURRING MACY'S MANAGEMENT TO ACTION HE WAS SO CONFIDENT THAT MACY'S STRONG PRESENCE AND FAMILIAR NAME WOULD APPEAL TO A BUYER THAT HE BOUGHT AS MUCH BANK DEBT AS HE COULD TRADERS SAY UNDAUNTED BY MACY'S STONEWALLING MR HARMETZ INCREASED FIDELITY'S HOLDINGS TENFOLD FROM ABOUT 20 MILLION WITHIN THE FIRST YEAR OF THE BANKRUPTCY FILING TRADERS SAY HE ADDED THE BALANCE BY BUYING JAPANESE BANKS' MACY LOANS FOR AS LITTLE AS 60 CENTS ON THE DOLLAR FIDELITY'S MACY HOLDINGS ARE TOO LARGE TO BE HELD BY FIDELITY CAPITAL & INCOME ALONE IN FACT THAT FUND HOLDS ONLY 84 MILLION OF MACY BANK DEBT THE REST IS SPRINKLED AMONG FIDELITY'S MAGELLAN PURITAN AND EQUITY INCOME FUNDS THE SEARCH FOR A CATALYST FOR CHANGE AT MACY NARROWED QUICKLY TO FEDERATED DEPARTMENT STORES AND DILLARD DEPARTMENT STORES INC ACCORDING TO A PERSON FAMILIAR WITH THE TALKS BY DECEMBER OF LAST YEAR HOWEVER MR HARMETZ WAS BECOMING DISCOURAGED TALKS WITH FEDERATED FLAGGED WHEN THE CINCINNATIBASED RETAILER SEEMED UNWILLING TO PURSUE A HOSTILE STRATEGY FOR GAINING CONTROL OF MACY AND DILLARD'S INTEREST SEEMED LIKEWISE TO LANGUISH IF DAN HAD KNOWN THIS WOULD TURN INTO A TWOYEAR BANKRUPTCY HE WOULD NEVER HAVE BOUGHT THE POSITION SAYS A RIVAL VULTUREFUND MANAGER SO FAR MR HARMETZ HASN'T STATED WHETHER HE'LL SUPPORT ANY BID FROM FEDERATED UNDER BANKRUPTCY LAW FEDERATED CANNOT FILE A PLAN OF REORGANIZATION UNTIL MACY'S EXCLUSIVE RIGHT TO PROPOSE ITS OWN PLAN HAS EXPIRED THAT EXCLUSIVITY PERIOD TERMINATES IN MIDMARCH BUT IT COULD BE EXTENDED BY JUDGE BURTON LIFLAND OF FEDERAL BANKRUPTCY COURT IN NEW YORK MR HARMETZ SAYS HE ISN'T STANDING STILL UNTIL THEN YESTERDAY HE MET WITH MACY MANAGEMENT HE ALSO MET WITH FEDERATED AND TODAY HE IS EXPECTED TO MEET WITH REPRESENTATIVES FROM DILLARD TO DISCUSS THE POSSIBILITY OF A JOINT BID MR HARMETZ REFUSES TO DESCRIBE HOW SUCH A BID MIGHT BE STRUCTURED RIGHT NOW HE SAYS WE ARE JUST DIGESTING THE SITUATION BUT PEOPLE WITH WHOM HE HAS DISCUSSED THE POTENTIAL MOVE SAY MR HARMETZ HAS BEEN MULLING OVER THE IDEA OF JOINING WITH DILLARD TO MAKE A FURTHER INVESTMENT IN MACY IN ORDER TO BUY IT AND BREAK IT UP MR HARMETZ'S INTEREST IN MACY'S DEBT REFLECTS HIS PREFERENCE FOR SENIOR DEBT THAT IS SECURED BY CLAIMS ON A TROUBLED COMPANY'S ASSETS WHENEVER POSSIBLE HE SAYS HE LIKES TO ACCUMULATE A POSITION LARGE ENOUGH TO BLOCK ANY PLAN OF REORGANIZATION THAT HE DOESN'T LIKE THAT'S WHY FIDELITY OWNS THE MACY'S SECURITIES IT DOES BANK DEBT SECURED BY STORES AND BY THE MACY NAME SUCH SECURITY LIMITS THE POSSIBILITY OF LOSS ONCE A REORGANIZED COMPANY EMERGES FROM BANKRUPTCY PROCEEDINGS SECURED DEBT GENERALLY RECEIVES A RECOVERY EQUAL TO THE VALUE OF THE ASSETS BACKING THE ORIGINAL LOAN THIS HAS BEEN A VERY SUCCESSFUL STRATEGY LAST YEAR THE CAPITAL & INCOME FUND THAT MR HARMETZ COMANAGES PRODUCED A TOTAL RETURN OF JUST UNDER 25 ACCORDING TO A FIDELITY SPOKESWOMAN THE RETURN WAS EVEN HIGHER THE YEAR BEFORE AND IT HIT A PEAK OF NEARLY 30 IN 1991 WHEN MR HARMETZ JOINED FROM COLUMBIA SAVINGS & LOAN ONE OF THE LARGEST BUYERS OF HIGHYIELD DEBT AND THE PLACE HE BEGAN WORKING ON RESTRUCTURINGS MR HARMETZ HAS SHARED IN HIS INVESTORS' RETURNS HE SAID HIS ANNUAL COMPENSATION IS IN THE RANGE OF 15 MILLION I MAKE A LOT OF MONEY HE CONCEDES BUT WON'T SPECIFY HOW MUCH MR HARMETZ IS ALSO IN THE UNUSUAL POSITION OF RUNNING A MUTUAL FUND OPEN TO THE PUBLIC WHILE ALSO MANAGING NEARLY 1 BILLION OF PRIVATE FUNDS WITHIN FIDELITY A PERSON FAMILIAR WITH THE FUNDS SAYS THAT MR HARMETZ WILL MANAGE ONLY THE PRIVATE MONEY AS OF THE END OF THIS WEEK 9401060101 940106 GM SATURN UNIT TRUMPETS PROFIT TURNED IN 1993 RESULTS WITH QUALIFICATIONS SET STAGE FOR STRUGGLE OVER FUNDING 2ND PLANT BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP'S SATURN UNIT TURNED A PROFIT IN 1993 WITH SOME BIG QUALIFICATIONS GENERATING BONUSES FOR ITS WORKERS AND SETTING THE STAGE FOR A STRUGGLE WITHIN GM OVER WHETHER TO SINK ANOTHER 1 BILLION OR MORE INTO THE CLOSELY WATCHED EXPERIMENT IN SMALLCAR MAKING FOR GM'S PRESIDENT JOHN F SMITH JR SATURN IS A DILEMMA THE HIGHVISIBILITY PROJECT WITH ITS INNOVATIVE LABOR RELATIONS AND CUSTOMERFRIENDLY SALES STYLE COULD LOSE MOMENTUM UNLESS IT GETS MONEY TO REDESIGN ITS CARS BY 1996 AND EXPAND ITS PRODUCTION CAPACITY BUT MR SMITH CAN ILL AFFORD APPEARING TO FAVOR SATURN AT A TIME WHEN OTHER GM DIVISIONS WITH GREATER PROFIT POTENTIAL ARE STARVED FOR CAPITAL SATURN OFFICIALS LOOKING TO DOWNPLAY SIGNS THAT THE UNIT'S SALES HAVE COOLED USED A PRESS CONFERENCE AT THE DETROIT AUTO SHOW YESTERDAY TO TRUMPET NEWS THAT THE SUBSIDIARY TURNED A PROFIT BEFORE INTEREST PAYMENTS TAXES AND CERTAIN OTHER CHARGES TO CELEBRATE SATURN PLANS TO INVITE 700000 BUYERS TO DESCEND ON THE HAMLET OF SPRING HILL TENN IN JUNE FOR A SORT OF AUTOMOTIVE WOODSTOCK FESTIVAL AT THE SATURN FACTORY THOMAS MANOFF SATURN'S VICE PRESIDENT OF FINANCE SAID THE UNIT'S QUALIFIED PROFIT WHICH HE DIDN'T DISCLOSE WILL GENERATE BONUSES FOR ALL 8000 SATURN EXECUTIVES AND HOURLY WORKERS THOSE BONUSES WILL BE ABOUT 1000 A WORKER A SATURN OFFICIAL INDICATED WORKERS AND EXECUTIVES AT GM'S OTHER NORTH AMERICAN VEHICLE DIVISIONS WON'T RECEIVE PROFITSHARING OR BONUSES THIS YEAR DESPITE ACHIEVING THEIR GOAL OF BREAKING EVEN BEFORE TAXES INTEREST AND OTHER CHARGES SATURN EXECUTIVES NOW WANT TO PERSUADE MR SMITH AND GM'S BOARD TO APPROVE A SECOND SATURN PRODUCTION FACILITY TO BOOST THE UNIT'S CAPACITY TO 500000 VEHICLES A YEAR FROM 322000 VEHICLES A YEAR NOW WITHOUT THE ADDITIONAL PLANT SATURN MAY GO BACK INTO THE RED AND WON'T BE CAPABLE OF GENERATING ITS OWN NEW PRODUCT CAPITAL MR MANOFF INDICATED LONG TERM GM WANTS SATURN TO EARN A 125 RETURN ON ASSETS SAID WILLIAM E HOGLUND GM EXECUTIVE VICE PRESIDENT WHO OVERSEES SATURN OPERATIONS THAT TRANSLATES TO ABOUT 300 MILLION PROFIT A YEAR ON SATURN'S CURRENT OPERATIONS EXECUTIVES AT SOME OF GM'S OTHER DIVISIONS HOWEVER ARE VOICING SKEPTICISM THAT SATURN CAN JUSTIFY A SECOND PLANT SO SOON GIVEN THE FLOOD OF NEW ENTRIES INTO THE SMALLCAR MARKET SUCH AS THE DODGE NEON AND THE REDONE CHEVROLET CAVALIER SCHEDULED OUT THIS FALL GOD LOVE 'EM SAID JC PERKINS THE GM VICE PRESIDENT IN CHARGE OF THE CHEVROLET DIVISION OF SATURN ON TUESDAY HE ADDED THE CASE HASN'T BEEN MADE FOR ADDITIONAL SATURN CAPACITY SATURN'S CASE ISN'T BEING HELPED BY THE RECENT SLOWDOWN IN SALES OF ITS THREEYEAROLD SEDANS AND COUPES SATURN DEALERS WHO ONCE BEGGED FOR CARS NOW HAVE ABOUT 90 DAYS' SUPPLY OF UNSOLD VEHICLES ON HAND THAT'S NEARLY 40 MORE THAN IS CONSIDERED IDEAL SOME ANALYSTS SAY SATURN'S LOT WILL ONLY GET HARDER IN 1994 THE NEON AT 8975 CHANGES ALL THE COMPETITIVE PARAMETERS IN THE SMALL CAR FIELD SAID LEHMAN BROTHERS ANALYST JOSEPH PHILLIPPI WHO ATTENDED SATURN'S PRESS BRIEFING MR SMITH SAID EARLIER THIS WEEK THAT SATURN WON'T GET SPECIAL TREATMENT AS IT DID DURING THE 1980S WHEN GM PLOWED 5 BILLION INTO THE EFFORT TO MATCH JAPANESE SMALL CARS GM NOW LOOKS TO SPEND LESS THAN HALF THAT ON ITS FUTURE NEWVEHICLE PROGRAMS SATURN HAS TO COME IN WITH A PLAN THAT MAKES ECONOMIC SENSE MR SMITH SAID TUESDAY MR MANOFF INDICATED THAT SATURN'S 1993 PROFIT HAD SOME BIG QUALIFICATIONS SATURN ISN'T REPAYING GM IN CASH FOR SOME 3 BILLION IN DEVELOPMENT COSTS MR MANOFF SAID INSTEAD SATURN WILL TAKE CREDIT FOR THE VALUE OF KNOWLEDGE TRANSFERRED TO GM'S OTHER DIVISIONS AND FOR PROFITS EARNED ON SATURN BUSINESS BY OTHER GM OPERATIONS SATURN'S PROFIT ALSO DOESN'T INCLUDE INTEREST ON ABOUT 19 BILLION IN BONDS USED TO FINANCE THE SPRING HILL FACTORY 9401060100 940106 TWA CHIEF SEES IMPROVED RESULTS ON '94 OPERATIONS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL TRANS WORLD AIRLINES FOLLOWING A SURPRISE MANAGEMENT SHAKEUP TUESDAY SAID IT EXPECTS TO REPORT AT LEAST BREAKEVEN OPERATING EARNINGS IN 1994 FOLLOWING SEVERAL YEARS OF OPERATING LOSSES THE FORECAST MADE YESTERDAY IN AN INTERVIEW WITH THE NEWLY APPOINTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER DONALD F CRAIB JR CAME AT A TIME WHEN INVESTOR CONFIDENCE IN THE COMPANY WAS JOLTED BY NEWS THAT WILLIAM R HOWARD QUIT TWA'S TOP JOBS HE HAD JOINED JUST SIX MONTHS BEFORE AND HAD GUIDED IT OUT OF BANKRUPTCY COURT WHENEVER THERE ARE SUDDEN AND UNEXPECTED MANAGEMENT CHANGES IT'S ALWAYS A RED FLAG SAID RAYMOND NEIDL AN AIRLINE ANALYST WITH FURMAN SELZ INC THE DEPARTURES OF MR HOWARD AND GLENN ZANDER A TWA VETERAN AND COVICE CHAIRMAN CAPPED SEVERAL MONTHS OF QUESTIONS ABOUT WHETHER TWA WOULD SURVIVE THE SLACK WINTER TRAFFIC SEASON FOR THE THIRD QUARTER TRADITIONALLY THE AIRLINE INDUSTRY'S STRONGEST PERIOD TWA REPORTED A LOSS OF 617 MILLION AND SOME ANALYSTS HAVE QUESTIONED WHETHER THE COMPANY WOULD HAVE ENOUGH CASH TO MAKE IT TO THE CRUCIAL SPRING AND SUMMER TRAVEL PERIOD MR CRAIB 68 YEARS OLD IS A TWA DIRECTOR AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OF ALLSTATE INSURANCE GROUP IN YESTERDAY'S INTERVIEW HE SAID HE COULDN'T SPECIFICALLY FORECAST TWA'S NET RESULT FOR 1994 BUT AFTER A DAY OF MEETING WITH SENIOR OFFICERS AT HEADQUARTERS IN MOUNT KISCO NY MR CRAIB SAID THE AIRLINE IS LOOKING FOR A MINIMUM OF A BREAKEVEN IN 1994 ON AN OPERATING BASIS TWA HASN'T YET REPORTED FULL 1993 RESULTS BUT IN THE FIRST NINE MONTHS TWA POSTED AN OPERATING LOSS OF 5894 MILLION AFTER TAXES AND A BIG PENSION SETTLEMENT CHARGE AND A NET LOSS OF 4175 MILLION FOR ALL OF 1992 THE CARRIER'S OPERATING LOSS WAS 3143 MILLION AND ITS NET LOSS WAS SLIGHTLY HIGHER TWA FILED FOR PROTECTION FROM CREDITORS IN JANUARY 1992 UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE AND EMERGED FROM THOSE PROCEEDINGS TWO MONTHS AGO MR CRAIB DISMISSED GLOOMY PROGNOSTICATIONS ABOUT THE AIRLINE SAYING TWA HAD ABOUT 160 MILLION IN CASH AT THE END OF DECEMBER HE SAID THAT WILL BE PLENTY TO SEE THE COMPANY THROUGH THE SLOW WINTER MONTHS AS TO 1994 HE SAID THE CARRIER WILL ENHANCE ITS CASH POSITION SOME TWA MANAGERS AND INDUSTRY CONSULTANTS BELIEVE MR HOWARD RESIGNED TUESDAY OVER DIFFERENCES ABOUT STRATEGY WITH OTHER TWA OFFICERS BUT MR CRAIB SAID HE KNEW OF NO SUCH CONFLICTS BILL FELT HE HAD FULFILLED HIS OBLIGATION TO THE COMPANY IN SEEING IT SUCCESSFULLY THROUGH BANKRUPTCY MR CRAIB SAID MR HOWARD DIDN'T RETURN PHONE CALLS MR CRAIB SAID MR ZANDER THE COVICE CHAIRMAN LEFT FOR PERSONAL REASONS WHICH HE DIDN'T DETAIL MR ZANDER COULDN'T BE REACHED ROBIN WILSON TWA'S REMAINING VICE CHAIRMAN SAID THE BOARD RECENTLY APPROVED THE ACQUISITION OF 15 AIRCRAFT ALL OF WHICH ARE EXPECTED TO BE IN SERVICE BY THE SUMMER HE SAID THE AIRLINE PLANS TO BUY EIGHT MCDONNELL DOUGLAS CORP MD80S SIX BOEING CO 767300S AND A BOEING 747200 MR CRAIB NOTING THAT MORE NONAIRLINE OFFICERS HAVE BEEN NAMED TO SENIOR POSTS AT CARRIERS RECENTLY SAID I CONSIDER THIS A PERMANENT SITUATION 9401060099 940106 WHO'S NEWS ICO INC ICO INC HOUSTON STEPHEN D HOUK 37 YEARS OLD RESIGNED AS SENIOR VICE PRESIDENT SECRETARYTREASURER AND CHIEF FINANCIAL OFFICER OF THIS PIPELINE INSPECTION AND COATINGS COMPANY A SPOKESMAN SAID THE COMPANY AND MR HOUK MUTUALLY AGREED TO THE SEPARATION LINDA C BRADY 30 WAS NAMED ACTING CHIEF FINANCIAL OFFICER AND THE BOARD HAS FORMED A COMMITTEE TO FIND A PERMANENT CHIEF FINANCIAL OFFICER 9401060098 940106 AGENCIES URGE RUSSIAN AID BE TIED TO SOCIAL POLICY WASHINGTON THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK ARE STRESSING THE IMPORTANCE OF LINKING FINANCIAL ASSISTANCE TO RUSSIA MORE CLOSELY TO SOCIAL AND ECONOMIC POLICIES RATHER THAN MAINLY POLITICAL MOTIVATIONS THE INSTITUTIONS IN A HIGHLY UNUSUAL JOINT STAFF NOTE ALSO DEFEND THEMSELVES AGAINST SENIOR US OFFICIALS' RECENT CRITICISM OF THE HANDLING OF MULTILATERAL ASSISTANCE TO RUSSIA THOSE OFFICIALS SAID INSUFFICIENT ATTENTION IS BEING PAID TO SOCIAL SAFETYNET PROGRAMS THE NOTE STRESSES THAT MISGUIDED FISCAL SPENDING IS A CRITICAL PROBLEM THAT RUSSIA MUST ADDRESS TO CREATE A MORE EFFICIENT SOCIAL SAFETY NET THE SOCIAL DIMENSION IS BEST ADDRESSED THROUGH TARGETED SOCIAL SAFETY NET POLICIES AS RECOMMENDED BY THE WORLD BANK AND IMF RATHER THAN THROUGH GENERALIZED SUBSIDIES AND CREDITS THE STAFF NOTE STATES THE STAFF NOTE UNDERSCORES THE DESIRE OF THE IMF AND WORLD BANK STAFF TO HOLD RUSSIA MORE ACCOUNTABLE STRESSING THAT WITHOUT POLICY CONDITIONALITY INCREASED CAPITAL FLIGHT AND A PROLONGED PERIOD OF REDUCED LIVING STANDARDS IS MORE LIKELY 9401060097 940106 OLD AMERICA STORES SALES GAIN HOWE TEXAS OLD AMERICA STORES INC SAID SALES LAST MONTH INCREASED 22 TO 143 MILLION FROM 118 MILLION A YEAR EARLIER SALES AT STORES OPEN MORE THAN A YEAR ROSE 39 OLD AMERICA IS A RETAILER OF HOMEDECORATING PRODUCTS AND ARTS AND CRAFTS ITEMS 9401060096 940106 TRUMP IS NEAR AGREEMENT TO BUY LAS VEGAS CASINO NEW YORK DONALD TRUMP IS CLOSE TO A DEAL TO ACQUIRE THE AILING ALADDIN HOTEL CASINO IN LAS VEGAS FOR ABOUT 60 MILLION ACCORDING TO TWO INDIVIDUALS FAMILIAR WITH THE NEGOTIATIONS MR TRUMP WHO HAS SPOKEN FOR YEARS ABOUT EXPANDING INTO LAS VEGAS HOPES TO FINANCE THE PURCHASE THROUGH A BOND OFFERING ACCORDING TO A PERSON FAMILIAR WITH HIS PLANS IT'S UNCLEAR WHETHER THAT OFFERING WOULD BE LINKED TO AN INTENDED PUBLIC OFFERING OF HIS THREE ATLANTIC CITY NJ CASINO PROPERTIES THE PURCHASE AGREEMENT IS EXPECTED TO BE SIGNED WITHIN TWO WEEKS THE ALADDIN IN A PRIME LOCATION NEAR THE NEW MGM GRAND HOTEL HAS BEEN ON THE MARKET FOR MORE THAN TWO YEARS BELL ATLANTIC TRICON LEASING CORP A UNIT OF BELL ATLANTIC CORP TOOK OWNERSHIP OF THE PROPERTY FOLLOWING THE BANKRUPTCY AND DEATH OF ITS FORMER OWNER AN ATTEMPT TO AUCTION THE PROPERTY IN 1991 FAILED TO ATTRACT A SUITABLE BID MR TRUMP DECLINED COMMENT AS DID A SPOKESWOMAN FOR BELL ATLANTIC MR TRUMP IS PREPARING FOR AN OFFERING OF HIS CASINO PROPERTIES TO RAISE MONEY TO PAY OFF ABOUT 200 MILLION IN PERSONALLY GUARANTEED BANK DEBT 9401060095 940106 TEAMSTERS TO VOTE ATLARGE ON RAISING DUES FOR FUND WASHINGTON TOP MANAGEMENT OF THE TEAMSTERS WILL SEEK A DUES INCREASE AS EARLY AS NEXT MONTH IN A BID TO SHORE UP THE TRUCKING UNION'S STRIKE FUND TEAMSTERS OFFICIALS SAID THIS WILL BE THE FIRST TIME THE UNION'S 14 MILLION MEMBERS IN THE US AND CANADA WILL VOTE DIRECTLY ON WHETHER TO RAISE DUES PREVIOUS DUES INCREASES WERE VOTED ON BY DELEGATES AT A CONVENTION AT THE UNION'S 1991 CONVENTION STRIKE BENEFITS WERE RAISED TO 200 A WEEK FROM 55 BUT NO PLAN WAS ADOPTED TO PAY FOR THE INCREASE IN PART AS A RESULT OF THAT INCREASE STRIKE BENEFITS ARE RUNNING ABOUT 34 MILLION A YEAR ABOUT NINE TIMES WHAT THEY WERE BEFORE 1991 UNION MANAGEMENT SAID A UNION SPOKESMAN SAID IT ISN'T CLEAR HOW LARGE AN INCREASE WILL BE SOUGHT EVERYTHING IS STILL UP FOR GRABS FOR HOW MUCH IT MIGHT BE THE SPOKESMAN SAID DUES TO THE INTERNATIONAL STAND AT 370 A MONTH FOR EACH MEMBER WHICH THE UNION SAID IS THE LOWEST OF ANY MAJOR US INTERNATIONAL UNION THE UNION LAST RAISED DUES TO THE INTERNATIONAL IN 1983 THE UNION IS IN SUCH WEAK FINANCIAL CONDITION THAT DURING NEGOTIATIONS WITH UNITED PARCEL SERVICE INC LATE LAST YEAR THE AFLCIO SET UP A 50 MILLION LINE OF CREDIT TO BOLSTER THE TEAMSTERS' STRIKE FUND THAT CREDIT LINE WASN'T TAPPED AS THE UNION AND UPS REACHED A CONTRACT WITHOUT A STRIKE 9401060094 940106 LETTERS TO THE EDITOR CLOSED DOORS HOUSING DISCRIMINATION ILLEGAL HOUSING DISCRIMINATION CONTINUES AT ALARMING RATES IN AMERICAN SOCIETY AS DOCUMENTED BY HUD THE JUSTICE DEPARTMENT AND NUMEROUS ACADEMIC STUDIES UNFORTUNATELY THE APPROACH TAKEN BY YOUR DEC 13 EDITORIAL POLITICALLY CORRECT CLASSIFIEDS TO THIS PROBLEM NOT ONLY FOCUSES ON ONE SPECIFIC CASE IN WHICH MANY OF THE FACTS WERE MISREPRESENTED BUT DISREGARDS THOSE EFFORTS NECESSARY TO ERADICATE HOUSING DISCRIMINATION THE WOMAN WHO PLACED THE CLASSIFIED AD APARTMENT FOR RENT 1 BEDROOM ELECTRIC INCLUDED MATURE CHRISTIAN HANDYMAN WAS OFFERED THE OPPORTUNITY TO DISCUSS SETTLEMENT OPTIONS ON THREE SEPARATE OCCASIONS THROUGH THE STATE'S ADMINISTRATIVE PROCESS IN SIMILAR CASES THE METROPOLITAN MILWAUKEE FAIR HOUSING COUNCIL HAS SETTLED FOR ONLY AN AGREEMENT BY THE HOUSING PROVIDER TO ATTEND A FAIR HOUSING TRAINING SEMINAR TO LEARN ABOUT THE LAWS HOWEVER THE WOMAN REFUSED TO DISCUSS THESE OPTIONS THE ADVERTISER WAS REPRESENTED BY AN ATTORNEY FROM THE RUTHERFORD INSTITUTE IF AS YOUR EDITORIAL STATES SHE HEARD NOTHING ABOUT THE CASE THAT MAY BE ATTRIBUTABLE TO HER ATTORNEY/CLIENT RELATIONSHIP RATHER THAN THE PROCESS ITSELF YOU STATE THAT THE MMFHC WAS TROLLING THE ADS TO NAIL PEOPLE ON THIS IN FACT AS PART OF ITS PROGRAM SERVICES WE PROVIDE LISTINGS OF RENTAL ADS FOR ITS CLIENTS WHO ARE LOOKING FOR HOUSING WHEN COMPILING SUCH LISTINGS THESE ILLEGAL ADS CAME TO OUR ATTENTION YOUR QUERY REGARDING WHERE THE LIMITS ARE ON THIS SORT OF LITIGATION AND ADMINISTRATIVE POLICING REFLECTS THE LACK OF UNDERSTANDING ABOUT THE DAMAGE THESE TYPES OF ADS CREATE THEY NOT ONLY DISCOURAGE POTENTIAL HOMESEEKERS FROM CONSIDERING SUCH HOUSING BUT ALSO SENDS THE ERRONEOUS MESSAGE THAT THIS TYPE OF DISCRIMINATION IS LEGALLY PERMISSIBLE IN FACT THE WOMAN WHO PLACED THE AD CONTENDS SHE FASHIONED HER AD AFTER SHE HAD SEEN SIMILAR ADS PLACED IN NEWSPAPERS INSTEAD OF APPLAUDING THE MILWAUKEE HOUSING COUNCIL FOR ENFORCING A NECESSARY AND WISE LAW YOU PERVERSELY PILLORIED IT FOR DOING WHAT IT IS SUPPOSED TO DO TO ACT UNEQUIVOCALLY AGAINST ETHNIC RELIGIOUS AND GENDER DISCRIMINATION WHENEVER AND WHEREVER IT OCCURS THE COUNCIL'S ATTORNEY WAS BEING UNNECESSARILY KIND WHEN SHE SAID SHE ACCEPTED THE PERPETRATOR'S CONTENTION THAT SHE HADN'T INTENDED TO DISCRIMINATE I NOT ONLY DO NOT ACCEPT HER ALLEGATION BUT TAKE IT AS A FALSEHOOD FOR ONCE BEING INFORMED OF THE INSIDIOUSNESS OF THE AD FOR A RENTER WHO WAS A MATURE CHRISTIAN HANDYMAN SHE COMPOUNDED THE OFFENSE BY INSISTING SHE WAS NOT DOING ANYTHING WRONG AS A CHRISTIAN WHO FELT SHE HAD AN OBLIGATION TO HELP OTHER CHRISTIANS FIRST YOUR WORDS I PRESUME ARE A PARAPHRASE OF HERS THAT OBLIGATION IS AS YOU SHOULD WELL KNOW THE BLOODY PIT FROM WHICH DISCRIMINATION SPRINGS I REMEMBER AS A YOUNG PERSON LOOKING FOR A JOB IN THE CLASSIFIED ADS AND SEEING EACH DOOR SEALED AGAINST ME BY THE ABBREVIATIONS IN THE LOWER CORNER CHR WHITE ONLY HAD YOUR EDITORIAL WRITER BEEN A HANDY WOMAN OR MALE OR FEMALE A JEW OR MUSLIM OR HINDU ETC SEEKING A SITUATION LIKE THE ONE ADVERTISED HE OR SHE MIGHT HAVE REACTED WITH THE LUMP IN THE CHEST THE RIGHTEOUS INDIGNATION AND THE SEETHING ANGER I EXPERIENCED ON READING YOUR EDITORIAL I COMMEND LOCAL STATE AND FEDERAL LAWS THAT LONG AGO BANNED SUCH ADS AS IN CLEAR VIOLATION OF ANTIDISCRIMINATION STATUTES THIS IS NOT POLITICAL CORRECTNESS RUN AMOK IT IS RATHER A SIMPLE CASE OF LEGALIZED EXTORTION SANCTIONED AND ENCOURAGED BY GOVERNMENT IN THE NAME OF FAIRNESS THE ADVERTISER HOWEVER SHOULD CONSIDER HERSELF FORTUNATE THE BUREAUCRATS NABBED HER ON SEXUAL AND RELIGIOUS GROUNDS ONLY HER USE OF THE WORD MATURE IN THE AD CONSTITUTES AGE DISCRIMINATION AS WELL 9401060093 940106 WHO'S NEWS NOVACARE INC NOVACARE INC KING OF PRUSSIA PA C ARNOLD RENSCHLER 51 YEARS OLD WAS NAMED PRESIDENT AND GENERAL MANAGER OF THE REHABILITATIONTHERAPY COMPANY'S HOSPITAL BUSINESS DR RENSCHLER'S FORMER POST PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S CONTRACT SERVICES GROUP WILL BE FILLED BY DARYL A DIXON 33 WHO WAS VICE PRESIDENT OF FIELD OPERATIONS FOR THE GROUP 9401060092 940106 PROPOSED MUNIGIFT RULE MAY INCLUDE FEDERAL RACES WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD SAID SOME CONTRIBUTIONS BY MUNICIPALBOND DEALERS TO STATE AND LOCAL OFFICIALS RUNNING FOR FEDERAL OFFICE MAY IN FACT BE COVERED BY ITS PROPOSAL TO END PAYTOPLAY POLITICAL GIFTS ON MONDAY MSRB EXECUTIVE DIRECTOR CHRISTOPHER TAYLOR SAID THE RULE DOES NOT COVER CONTRIBUTIONS MADE TO A FEDERAL ELECTION BUT THE MSRB YESTERDAY CLARIFIED THIS TO SAY THAT WHILE IT IS GENERALLY TRUE THAT THE RULE WON'T COVER CONTRIBUTIONS MADE IN FEDERAL ELECTIONS THERE MAY BE INSTANCES WHERE THE RULE COVERS POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS RUNNING FOR FEDERAL OFFICE BOARD OFFICIALS DEFERRED ANY FURTHER COMMENT ON THE MATTER UNTIL THE PROPOSED RULE IS SENT TO THE SECURITIES AND EXCHANGE COMMISSION FOR CONSIDERATION SOON THE MSRB IS A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT AND ITS RULES ARE SUBJECT TO SEC APPROVAL SEC OFFICIALS INDICATED THAT COMMISSION CHAIRMAN ARTHUR LEVITT WHO HAS TAKEN A HANDSON ROLE IN TRYING TO RID THE MUNI MARKET OF ITS PAYTOPLAY CULTURE WANTS THE MSRB'S RULE TO BE AS INCLUSIVE AS POSSIBLE AMONG THE GIFTS COVERED BY THE PROPOSED RULE OFFICIALS INDICATED WOULD BE THOSE MADE TO MEMBERS OF CONGRESS WHO ARE RUNNING FOR STATE AND LOCAL OFFICE UNDER THE MSRB'S PROPOSAL A BOND DEALER COULDN'T DO BUSINESS WITH A JURISDICTION WITHIN TWO YEARS OF WHEN THE DEALER ITS POLITICALACTION COMMITTEE OR ITS MUNI PROFESSIONALS CONTRIBUTED TO AN OFFICIAL OF THE JURISDICTION 9401060091 940106 ABREAST OF THE MARKET INDUSTRIALS HIT A RECORD 379882 ON GAINS IN CYCLICAL OIL STOCKS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK SHARP GAINS IN ECONOMICALLY SENSITIVE AND OILRELATED STOCKS CATAPULTED THE DOW JONES INDUSTRIAL AVERAGE TO A RECORD JUST SHY OF THE 3800 MARK STOCKS SPENT MUCH OF THE EARLY PART OF THE SESSION IN NEGATIVE TERRITORY FOLLOWING THE COURSE SET BY THE BOND MARKET BUT BUYERS EMERGED IN THE AFTERNOON CARRYING THE AVERAGE TO A GAIN OF 1492 OR 039 TO 379882 THAT TOPPED A RECORD OF 379433 SET DEC 29 TRADING ACTIVITY SWELLED TO 375134490 SHARES ON THE NEW YORK STOCK EXCHANGE UP FROM 322450880 TUESDAY AND THE HIGHEST ONEDAY TALLY SINCE SEPT 17 FOR A SECOND STRAIGHT DAY ANALYSTS ATTRIBUTED SOME OF THE BUYING TO INSTITUTIONAL INVESTORS SUCH AS PENSION FUNDS INVESTING PART OF THE NEW CASH THEY RECEIVED AT THE START OF THE YEAR CYCLICALS WERE TARGETED BECAUSE OF THE STEADY FLOW OF UPBEAT ECONOMIC STATISTICS THAT THE GOVERNMENT HAS RELEASED OVER THE PAST SEVERAL MONTHS ANOTHER DOSE OF GOOD NEWS CAME YESTERDAY MORNING WITH LABOR DEPARTMENT DATA SHOWING FACTORY ORDERS JUMPED 14 IN NOVEMBER OIL STOCKS BENEFITED FROM A SHARP RALLY IN THE PRICE OF CRUDE OIL LIGHT SWEET CRUDE FOR FEBRUARY DELIVERY JUMPED 71 CENTS TO 1535 A BARREL IN NEW YORK THE FIRST MOVE OVER 15 SINCE DEC 13 BIG GAINERS INCLUDED INTERNATIONAL PAPER WHICH RALLIED 2 3/4 TO 72 3/8 ALUMINUM CO OF AMERICA WHICH INCREASED 1 3/4 TO 72 1/4 DEERE & CO WHICH CLIMBED 1 1/4 TO 73 1/2 AND CHEVRON WHICH JUMPED 1 1/4 TO 90 3/4 BROADBASED INDEXES ALSO ADVANCED BUT LAGGED BEHIND THE DOW JONES INDUSTRIAL AND TRANSPORTATION AVERAGES THE STANDARD & POOR'S 500STOCK INDEX ROSE 060 OR 014 TO 44257 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 044 OR 017 TO 25931 AND THE DOW JONES EQUITY MARKET INDEX GAINED 058 OR 013 TO 44256 THERE WERE 1196 BIG BOARD ADVANCERS AND 999 DECLINERS THE NASDAQ COMPOSITE INDEX INCREASED 377 OR 049 TO 77805 TECHNOLOGY ISSUES WHICH ARE WELL REPRESENTED IN THE NASDAQ STOCK MARKET WERE AMONG THE STRONGEST AREAS APPLE COMPUTER JUMPED 2 1/4 TO 33 3/4 MICROSOFT INCREASED 1 3/4 TO 82 1/4 AND CISCO GAINED 1 1/2 TO 66 1/2 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADDED 143 OR 030 TO 47879 ITS 10TH STRAIGHT DAILY RISE WHILE THE MARKET AS A WHOLE MANAGED TO SHAKE OFF THE BOND MARKET TREND BEFORE THE CLOSE MANY FINANCIALRELATED AND UTILITY STOCKS COULDN'T BANKS WERE MODERATELY LOWER WITH WELLS FARGO & CO DOWN 1 3/4 TO 128 1/8 AND CHASE MANHATTAN OFF 3/8 TO 33 1/8 THE DOW JONES UTILITIES AVERAGE FELL 257 OR 113 TO 22403 AMID THE BUYING THERE WERE ALSO SHARP LOSSES BORDEN PLUNGED 2 3/8 OR 13 TO 15 7/8 AFTER THE NEW YORK FOOD COMPANY DISCLOSED DETAILS OF ITS RESTRUCTURING PLANS INVESTORS WERE DISAPPOINTED THE COMPANY WON'T BE MORE AGGRESSIVE IN SELLING ASSETS ALSO BORDEN SAID IT MAY HALVE ITS ANNUAL DIVIDEND TO 30 CENTS A SHARE VOLUME WAS 44 MILLION SHARES ON NASDAQ MOBILE TELECOMMUNICATIONS PLUMMETED 9 5/8 OR 37 TO 16 1/2 ON VOLUME OF NEARLY 14 MILLION SHARES FACING CHEAPER RATES FROM ITS COMPETITION THE JACKSON MISS COMPANY CUT ITS MONTHLY BASE PRICE ON ITS 90OWNED SKYTEL NATIONWIDE PAGING SERVICE TO 39 FROM 69 ITS PLANO TEXAS RIVAL PAGING NETWORK INC LOST 1 3/4 TO 27 3/4 ALSO ON NASDAQ EUGENE PERONI TECHNICAL ANALYST AT JANNEY MONTGOMERY SCOTT SAID SOME OF THE LAGGARDS IN 1993 ROSE AS INVESTORS BET ON A TURNAROUND MERCK & CO HURT LAST YEAR BY WORRIES ABOUT HEALTHCARE REFORMS JUMPED 1 1/4 TO 37 1/4 ON MARKETLEADING VOLUME OF 111 MILLION INTERNATIONAL BUSINESS MACHINES BATTERED BY A STRING OF RECENT QUARTERLY LOSSES ADDED 1/2 TO 59 1/2 PARAMOUNT COMMUNICATIONS ADDED 3/4 TO 78 1/4 BLOCKBUSTER ENTERTAINMENT EASED 3/8 TO 29 3/4 AND ON THE AMEX VIACOM'S CLASS B SHARES SLIPPED 1 TO 43 1/2 VIACOM HELD LASTMINUTE TALKS WITH BLOCKBUSTER ON FINANCING FOR A SWEETENED BID FOR PARAMOUNT WITH A DEADLINE TOMORROW QVC NETWORK HAS MADE THE HIGHEST OFFER FOR THE NEW YORK MEDIA COMPANY QVC SHARES ROSE 3/4 TO 40 1/2 ON NASDAQ AMERICAN DEPOSITARY RECEIPTS OF MEXICAN COMPANIES RALLIED AS THE MEXICAN STOCK MARKET JUMPED TO A RECORD WORRIES ABOUT UNREST IN SOUTHERN MEXICO CONTINUED TO FADE AS THIS WEEK'S PEASANT UPRISING APPEARED TO BE NEUTRALIZED TELEFONOS DE MEXICO A TELEPHONE SERVICE ISSUE ADDED 1 3/4 TO 68 1/2 GRUPO TRIBASA A CONSTRUCTION ISSUE ADDED 3 5/8 TO 36 1/4 SHARES OF THE REGIONAL TELEPHONE COMPANIES SLID FOR A SECOND STRAIGHT DAY AFTER MCI COMMUNICATIONS DISCLOSED DETAILS OF ITS PLANS TO BUILD LOCAL NETWORKS EXPERTS CALCULATE THAT 25 TO 30 OF REVENUES AT THE BABY BELLS COME FROM ACCESS CHARGES ASSESSED AGAINST LONG DISTANCE SERVICE PROVIDERS SUCH AS MCI SOUTHWESTERN BELL DROPPED 1 3/4 TO 38 7/8 NYNEX SLIPPED 7/8 TO 39 3/8 AMERITECH DECLINED 1 TO 73 1/2 AND U S WEST LOST 1 1/8 TO 43 3/4 MCI MEANWHILE ADDED 1/4 TO 26 7/8 ON NASDAQ KMART SLIPPED 1/2 TO 21 AFTER THE TROY MICH RETAILER DISCLOSED A RESTRUCTURING THAT INCLUDES ISSUING STOCK TARGETED AT FOUR OF ITS UNITS AND THE CLOSURE OF HUNDREDS OF STORES THE REVAMPING WILL RESULT IN A HUGE CHARGE THE COMPANY SAID 9401060090 940106 HEARD ON THE STREET DISNEY STOCK AFTER DISMAL '93 PERFORMANCE IS PRESENTING BETTER PICTURE SOME INVESTORS SAY BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS IN MOST ENTERTAINMENT COMPANIES HAD GOOD REASON TO BE POPPING THE CHAMPAGNE CORKS AT YEAR END AS THE GROUP'S STOCKS FINISHED 1993 WITH AN AVERAGE GAIN OF 46 BUT WALT DISNEY INVESTORS DIDN'T JOIN THE FESTIVITIES WHILE THEIR PEERS CELEBRATED DISNEY HOLDERS FINISHED THE YEAR DOWN 9 AMID WORRIES ABOUT THE COMPANY'S EURO DISNEY THEME PARK DECLINING THEMEPARK ATTENDANCE IN THE US AND A DROP IN INVESTORS' CONFIDENCE IN DISNEY MANAGEMENT BUT SOME HEAVYWEIGHT INVESTORS NOW ARE BEGINNING TO TALK POSITIVELY ABOUT THE STOCK FOR THE FIRST TIME IN NEARLY TWO YEARS SINCE THE STOCK BEGAN TO FALL OUT OF FAVOR AND THEN SETTLED INTO A TRADING RANGE OF 36 TO 47 LAST YEAR THE OUTLOOK MAY BRIGHTEN SOON INVESTORS ARE EXPECTING THE COMPANY TO REPORT STRONG RESULTS FOR ITS FISCAL FIRST QUARTER ENDED IN DECEMBER DREW MARCUS AN ANALYST AT ALEX BROWN & SONS RAISED HIS QUARTERLY ESTIMATE TO 60 CENTS A SHARE FROM 55 CENTS A SHARE AS A RESULT OF GANGBUSTER VIDEO AND BOXOFFICE SALES HE THINKS FILM PROFITS INCLUDING VIDEO SALES GREW 30 FOR THE QUARTER LED BY 21 MILLION COPIES OF ALADDIN VIDEO SALES AND STRONG INTERNATIONAL VIDEO SALES OF BEAUTY AND THE BEAST AND JUNGLE BOOK BUT JUST AS IMPORTANT FOR THE LONG TERM INVESTORS HAVE BEEN CHEERED BY THE GETTOUGH ATTITUDE CHAIRMAN MICHAEL EISNER HAS TAKEN RECENTLY WITH CREDITORS OF EURO DISNEY LAST WEEK MR EISNER SAID HE WOULDN'T RULE OUT CLOSING THE PARK IN FRANCE IF THE COMPANY IS UNABLE TO REACH A RESTRUCTURING WITH CREDITORS OF 6 BILLION IN EURO DISNEY DEBT INVESTORS IN THE PAST HAVE WORRIED ABOUT THE POSSIBILITY OF A LONGTERM DRAIN ON DISNEY FROM THE FRENCH THEME PARK DISNEY INITIALLY INVESTED 160 MILLION IN EURO DISNEY AND CURRENTLY OWNS 49 THE PARK HAS BEEN PLAGUED BY POOR ATTENDANCE INVESTORS ARE RECOGNIZING THAT DISNEY IS BEING COLDBLOODED ABOUT THE PARK AND THAT MEANS A SOLUTION COULD COME EARLIER RATHER THAN LATER SAID CHRISTOPHER DIXON AN ANALYST AT PAINEWEBBER WHICH RECENTLY ADDED DISNEY TO ITS FOCUS LIST OF A DOZEN OR SO STOCKS THAT IT EXPECTS WILL OUTPERFORM THE MARKET AMONG DISNEY STOCK'S BIGGEST SUPPORTERS IS GORDON CRAWFORD A HIGHLY REGARDED PORTFOLIO MANAGER AT CAPITAL RESEARCH & MANAGEMENT WHO PRAISED THE STOCK AT A BEAR STEARNS CONFERENCE IN ARIZONA LAST FALL MR CRAWFORD SAID THE IMPROVING PROSPECTS FOR A RESTRUCTURING OF EURO DISNEY ARE A MAJOR REASON TO BUY THE US COMPANY'S STOCK TOGETHER THE IMPROVING OUTLOOK FOR EURO DISNEY AND A PICKUP IN DISNEY'S US VIDEO AND BOXOFFICE SALES HAVE HELPED TO BOOST THE STOCK IN RECENT WEEKS TO THE TOP END OF THE PAST YEAR'S TRADING RANGE YESTERDAY DISNEY CLOSED AT 44 7/8 UP 1/4 INVESTORS HAVE ALSO BEGUN TO TAKE NOTICE OF DISNEY'S STOCK PRICE WHEN COMPARED WITH THE REST OF THE GROUP YOU'VE BEEN SEEING SOME SWAPPING OUT OF PARAMOUNT AND TIME WARNER WHICH PERFORMED WELL LAST YEAR AND INTO DISNEY SAYS PAINEWEBBER'S MR DIXON PARAMOUNT HAS BEEN TRADING AT AROUND 18 TIMES CASH FLOW WHILE TIME WARNER HAS TRADED AT AROUND 12 TIMES A MONEY MANAGER SAYS DISNEY STOCK EVEN AFTER ITS RECENT CLIMB TRADES AT ONLY ABOUT 10 TIMES THE COMPANY'S CASH FLOW UNLIKE OTHER ENTERTAINMENT COMPANIES BULLS SAY DISNEY HASN'T YET BENEFITED FROM TWO THINGS ITS FILMS AND CHARACTERS HAVE INCREASING VALUE AS POTENTIAL PROGRAMMING FOR EMERGING MULTIMEDIA TECHNOLOGIES AND THEY ALSO CAN BE BIG SELLERS ABROAD DISNEY HAS THE KIND OF PRODUCT WITH WORLDWIDE APPEAL THAT WILL BENEFIT FROM GATT AND NAFTA SAID MORRIS MARK A MONEY MANAGER WHO RECENTLY HAS BEEN ADDING TO HIS DISNEY HOLDINGS DISNEY HAS SHOWN A LOT OF IMAGINATION AND AN ABILITY TO CONTINUE TO CREATE NEW PRODUCTS MR MARK SAID IN FACT DISNEY IN 1994 WILL BE CHURNING OUT MOVIES AT ABOUT TWICE LAST YEAR'S PACE WE'RE BEGINNING TO SEE A RECOGNITION AMONG INVESTORS ABOUT WHAT IT WILL MEAN FOR DISNEY TO RELEASE ONE OUT OF EVERY FOUR MOVIES THAT COMES OUT OF HOLLYWOOD THIS YEAR SAYS MR DIXON DISNEY IS SCHEDULED TO RELEASE 40 MAJOR FILMS THIS YEAR ABOUT 25 OF HOLLYWOOD'S TOTAL EXPECTED OUTPUT EXCLUDING INDEPENDENT FILMS 9401060089 940106 WHO'S NEWS FORMER IBM AIDE IS NAMED CHIEF OF BOLT BERANEK BY TOM KNUDSON STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS GEORGE CONRADES A FORMER SENIOR VICE PRESIDENT AT INTERNATIONAL BUSINESS MACHINES CORP WHO WAS SHOVED ASIDE IN A MANAGEMENT SHAKEUP IN 1991 HAS BEEN HIRED TO REJUVENATE BOLT BERANEK & NEWMAN INC MR CONRADES 54 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BOLT BERANEK SUCCEEDING STEPHEN R LEVY WHO WILL REMAIN CHAIRMAN AT IBM MR CONRADES WAS KNOWN FOR HIS MARKETING PROWESS AND ABILITY TO MOTIVATE EMPLOYEES CHARACTERISTICS THAT WILL BE MUCH IN DEMAND AT BOLT BERANEK WHICH HAS INCURRED LAYOFFS AND LOSSES AS CUSTOMERS IN THE THE MILITARY AND FEDERAL AGENCIES HAVE CUT SPENDING ONE MAJOR CHALLENGE FOR MR CONRADES IS TO BROADEN THE COMPANY'S REVENUE SOURCES AFTER ESTABLISHING ITSELF AS A PIONEERING HIGHTECHNOLOGY COMPANY THAT SPECIALIZES IN PACKETSWITCHING DATA COMMUNICATION BOLT BERANEK NOW RELIES ON GOVERNMENT CONTRACTS FOR ABOUT TWOTHIRDS OF ITS REVENUE MAINLY IN RESEARCH AND COMPUTER AND ACOUSTIC SYSTEMS DESIGN AN UPBEAT MR CONRADES SAYS HE SEES OPPORTUNITIES IN A NUMBER OF NEW BOLT BERANEK TECHNOLOGIES AIMED AT IMPROVING THE WAY PEOPLE AND COMPUTERS COMMUNICATE INCLUDING A HIGHSPEED COMPUTER SWITCHING DEVICE AND SOFTWARE FOR MAKING PICTURES FROM NUMERICAL DATA BY EXPANDING INTO SUCH AREAS BOLT BERANEK WILL HAVE KIND OF A NEW PAN IN WHICH TO PREPARE OUR MEALS SAYS MR CONRADES THE COMPANY'S NET LOSS FOR THE FISCAL YEAR ENDED JUNE 30 WAS 323 MILLION OR 205 A SHARE COMPARED WITH A PROFIT OF 78 MILLION OR 46 CENTS A SHARE A YEAR EARLIER REVENUE FELL 95 TO 2335 MILLION FROM 258 MILLION IN FISCAL 1992 MR CONRADES EARNED A REPUTATION AS A SHARP MARKETER BY HELPING TURN AROUND IBM'S ASIAN OPERATIONS IN 1991 AS A SENIOR VICE PRESIDENT HE WAS A CANDIDATE FOR THE COMPANY'S CHAIRMANSHIP UNTIL HE WAS PUSHED ASIDE IN A SURPRISINGLY PUBLIC MOVE BY THENCHAIRMAN JOHN AKERS MR CONRADES LANDED IN A LESS POWERFUL POSITION WITH LIMITED STAFF AND DUTIES AND LEFT THE COMPANY A FEW MONTHS LATER MANY IBM INSIDERS FELT HE WAS UNFAIRLY VICTIMIZED FOR MR AKERS'S OWN FAILINGS BOLT BERANEK OFFICIALS ARE BETTING THAT MR CONRADES CAN FIND NEW CUSTOMERS FOR TECHNOLOGIES THAT ARE PROMISING BUT HAVEN'T YET GENERATED BIG SALES MR LEVY 53 WHO IS STEPPING DOWN AS BOLT BERANEK'S TOP EXECUTIVE SAID HE WASN'T ASKED TO MOVE ASIDE THIS WAS ENTIRELY INITIATED BY ME HE SAID I'VE BEEN CHIEF EXECUTIVE OFFICER FOR 17 YEARS THERE AREN'T TOO MANY PEOPLE I WOULD STEP ASIDE FOR JOHN LOGAN EXECUTIVE VICE PRESIDENT OF THE ABERDEEN GROUP INC A MARKET RESEARCH AND CONSULTING COMPANY IN BOSTON APPLAUDED THE MOVE FANTASTIC MR LOGAN SAID BBN IS A TERRIFIC TECHNOLOGICAL COMPANY AND CONRADES IS THE KIND OF PERSON WHO CAN TAKE THAT KNOWLEDGE TO THE MARKETPLACE MR LOGAN SAID HE KNOWS WHAT THE BIG DATA CENTERS NEED HOW THEY NEED IT SUPPLIED AND THROUGH WHAT CHANNELS 9401060088 940106 WORLD MARKETS TOKYO STOCKS JUMP 24 ON BRIGHTER PROSPECTS FOR EXPORTERS AS THE JAPANESE YEN WEAKENS BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPANESE STOCKS JUMPED 24 WEDNESDAY AS INVESTORS ENCOURAGED BY BRIGHTER EXPORT PROSPECTS BECAUSE OF A WEAKENING YEN SNAPPED UP SHARES IN BLUECHIP EXPORTERS IN THE FIRST FULL TRADING SESSION OF THE YEAR THE NIKKEI 225STOCK AVERAGE SURGED 41374 POINTS TO 1778348 THE ADVANCE WAS LED BY KEY EXPORTING SECTORS SUCH AS AUTO AND ELECTRONICS MAKERS THE CURRENCY MARKET REALLY GAVE A BOOST TO STOCKS SAID ISAO TAKAHASHI GENERAL MANAGER OF JAPANESE EQUITY TRADING AT JAMES CAPEL PACIFIC LTD AT 11312 YEN TO THE DOLLAR AT THE CLOSE OF TRADING WEDNESDAY IN TOKYO THE GREENBACK WAS HOVERING NEAR ITS HIGHEST LEVELS AGAINST THE YEN IN ROUGHLY EIGHT MONTHS THE TREND MARKS A MODERATE REVERSAL OF THE SITUATION LAST YEAR A STRONG YEN MAKES GOODS PRODUCED IN JAPAN MORE EXPENSIVE IN FOREIGN MARKETS AFTER WATCHING THE DOLLAR FALL TO NEARLY 100 YEN TO THE DOLLAR LAST YEAR JAPANESE CORPORATIONS NOW ARE ENJOYING A LITTLE RELIEF FROM THE PRESSURES THE WEAK DOLLAR HAS PUT ON THEIR BALANCE SHEETS MANY TRADERS SAID THE BENEFITS HAVE BEEN BOOSTED BY ECONOMIC RECOVERY IN THE US A MAJOR JAPANESE EXPORT MARKET SUCH BULLISH TALK IS COMMON IN JAPAN AROUND THE BEGINNING OF EVERY YEAR THIS YEAR MANY INVESTORS EVEN SAID JAPAN'S EQUITY MARKETS MAY START TO ATTRACT SOME OF THE MONEY THAT HAS DRIVEN OTHER ASIAN BOURSES TO RECORD HIGHS IN RECENT MONTHS ONE OF THE ARGUMENTS THAT YOU HEAR IS THAT OTHER ASIAN MARKETS ARE SMALL AND ALREADY HAVE HAD A GOOD RUN SO SOONER OR LATER THE MONEY'S GOING TO HAVE TO FLOW TO TOKYO SAID JARDINE FLEMING SECURITIES SALESMAN PAUL MIGLIORATO STILL MR MIGLIORATO AND OTHERS SAID INVESTORS IN JAPANESE STOCKS FACE MANY UNCERTAINTIES NOT THE LEAST OF WHICH IS A FRACTIOUS PARLIAMENTARY DEBATE ABOUT POLITICAL REFORM MANY SEE THE DEBATE AS DELAYING GOVERNMENT STEPS TO BOOST JAPAN'S FLAGGING ECONOMY LONDON AND FRANKFURT SHARES RETREATED AS EACH MARKET WAS DRAGGED DOWN BY FUTURES DEALINGS BUT STOCKHOLM EQUITIES ROSE TO A SECOND CONSECUTIVE RECORD THE SYDNEY MARKET CLIMBED TO A NEW SIXYEAR HIGH AND TAIPEI PRICES SOARED 57 TO A THREEYEAR HIGH ON RECORD VOLUME WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11174 UP 026 REFLECTING HIGHER ASIA/PACIFIC AND AMERICAN MARKETS AND LOWER EUROPEAN MARKETS POLLUTION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7642 UP 182 OR 24 WITH CLASS B SHARES OF LAIDLAW OF CANADA RISING 67 IN ITS LOCAL CURRENCY WATER UTILITIES STOCKS TRAILED AT 12568 DOWN 186 OR 15 WITH NORTH WEST WATER GROUP OF THE UNITED KINGDOM SLIDING 23 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 293 POINTS TO 33792 THE FT 30STOCK INDEX FELL 58 POINTS TO 25462 VOLUME WAS 908 MILLION SHARES COMPARED WITH 107 BILLION SHARES A DAY EARLIER PESSIMISM IN THE FUTURES MARKET ABOUT THE INTERESTRATE OUTLOOK PRESSURED BIG STOCKS RECENT SIGNS OF AN ECONOMIC PICKUP INCLUDING HIGHER CONSUMER SPENDING HAVE DASHED HOPES THAT LENDING RATES WILL FALL EARLY THIS YEAR A PROSPECT THAT SENT STOCKS UP SHARPLY LAST MONTH DESPITE PROFITTAKING IN LARGECAPITALIZATION STOCKS SOME SMALL COMPANIES POISED TO BENEFIT FROM ECONOMIC RECOVERY POSTED GAINS IN FRANKFURT THE DAX 30STOCK INDEX WHICH HAD SET A NEW HIGH IN THIS YEAR'S OPENING SESSION FELL 2017 POINTS TO 223341 AFTER LOSING 1440 POINTS A DAY EARLIER THE STOCK MARKET WAS PUSHED DOWN BY THE FUTURES MARKET BUT SENTIMENT ABOUT THE CORRECTION WAS POSITIVE FOLLOWING THE STRONG YEAREND GAINS SOME PARTICIPANTS SHRUGGED OFF GERMANY'S HIGHER UNEMPLOYMENT FIGURES FOR DECEMBER IN PARIS FOLLOWING A HIGHER OPENING STOCKS ENDED WITH A 11 LOSS FROM A SHARP BOUT OF PROFITTAKING WHICH DIDN'T SURPRISE PARTICIPANTS GIVEN EQUITIES' RECENT HEIGHTS AN UPSWING IN OIL PRICES FED FEARS THAT US INFLATION AND THUS INTEREST RATES WILL RISE AND CAUSE US STOCKS TO TUMBLE IN MILAN PRICES FELL BROADLY PARTLY FROM TECHNICAL DEADLINES AND FROM MORE LIGHTENING OF POSITIONS AHEAD OF TODAY'S ITALIAN HOLIDAY IN STOCKHOLM'S HALFDAY SESSION BEFORE THE MARKET'S CLOSURE FOR A SWEDISH HOLIDAY TODAY STOCKS' CLIMB INTO RECORD TERRITORY WAS LED BY THE TELECOMMUNICATIONS SECTOR AND IN BRUSSELS SHARES ENDED AT A RECORD HIGH TOPPING THE MARK SET MONDAY GAINS WERE EVENLY SPREAD AMONG CYCLICAL INDUSTRIAL FINANCIAL AND RETAILING SHARES IN MEXICO CITY THE IPC INDEX SOARED 39 TO A RECORD AS A PEASANT UPRISING APPEARED TO BE NEUTRALIZED AND FOREIGN BARGAIN HUNTERS ESPECIALLY US INVESTORS INJECTED FRESH CASH INTO THE MARKET IN SYDNEY STOCKS' GAIN WAS LED BY A STRONG PERFORMANCE BY GOLD ISSUES FOREIGN INVESTORS CONTINUED TO BE BIG BUYERS IN TAIPEI ON THE MARKET'S FIRST TRADING DAY THIS YEAR PRICES SKYROCKETED ON RECORD VOLUME OF 33 BILLION SHARES AS INVESTORS AND SPECULATORS REACTED FAVORABLY TO THE PROPOSED CAPITALGAINS TAX ON SECURITIES INVESTORS WERE OPTIMISTIC THAT THE TAX WOULDN'T AFFECT MOST INDIVIDUAL INVESTORS FINANCIAL ISSUES JUMPED 68 TEXTILES 58 AND ELECTRONICS ISSUES 57 AND IN SEOUL STOCKS CLIMBED 11 ON EXPECTATIONS OF A PEACEFUL SETTLEMENT OF CONFLICTS OVER NORTH KOREA'S SUSPECTED NUCLEARDEVELOPMENT PROJECTS SENTIMENT ALSO WAS BOOSTED BY SPECULATIVE NEWS REPORTS OF A SINOSOUTH KOREAN SUMMIT THESE FACTORS HEIGHTENED HOPES FOR EXPANDED ECONOMIC COOPERATION BY THE TWO KOREAS AND CHINA BUT IN HONG KONG SHARES FELL AS HEAVY PROFITTAKING BROKE A STREAK OF RECORD HIGHS THE BENCHMARK INDEX WAS TUGGED BACK AND FORTH BY BULLISH INVESTORS AND THOSE WHO WERE TURNING CAUTIOUS SHARES SLUMPED AT THE OPENING WEIGHED DOWN BY THE PREVIOUS DAY'S WEAKNESS OF HONG KONG STOCKS THAT ALSO TRADE IN LONDON AFTER BOUNCING BACK UP INTO POSITIVE TERRITORY PRICES WERE UNDERCUT IN LATE TRADING BANKS WERE AMONG THE FEW ADVANCERS AND UTILITIES POSTED THE BIGGEST LOSSES IN SINGAPORE STOCKS GAVE UP EARLY GAINS AND TUMBLED 16 ON RUMORS THAT SENIOR MINISTER LEE KUAN YEW WAS ILL SOME TALK OF COMING HIGHER INTEREST RATES ADDED TO THE JITTERS IN MANILA SHARES SLUMPED 23 IN HEAVY VOLUME HURT BY PROFITTAKING AFTER THREE STRAIGHT DAYS IN RECORD TERRITORY IN BANGKOK TALK OF A CAPITALGAINS TAX WAS PARTLY CITED FOR SPOOKING THE MARKET AND SPURRING A 25 SELLOFF ON RECORD VOLUME 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 9401060087 940106 MONEYFUND YIELDS SUBJECT TO TAX ROSE ASSETS FELL IN WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS ROSE A BIT WHILE ASSETS FELL IN THE WEEK ENDED TUESDAY IBC/DONOGHUE INC'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS INCHED UP TO 278 FROM 276 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS CREPT TO 275 FROM 272 WHILE THE 30DAY SIMPLE YIELD ROSE TO 272 FROM 27 THE 30DAY COMPOUND YIELD ALSO EDGED UP TO 275 FROM 274 ASSETS OF 635 TAXABLE FUNDS TWO FEWER THAN THE PREVIOUS WEEK FELL BY 661 BILLION TO 47344 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS TOOK OUT 715 BILLION WHILE INDIVIDUAL INVESTORS PUT IN 5348 MILLION WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE CHANGES IN YIELDS AND ASSETS TO SEASONAL ADJUSTMENTS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY ONE DAY TO 58 DAYS THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD ROSE TO 236 FROM 219 IN THE LATEST WEEK COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 369 FOR SOMEONE PAYING 36 IN TAXES AND TO 391 FOR THOSE WHO PAY 396 ASSETS OF 339 TAXEXEMPT FUNDS ONE MORE THAN LAST WEEK FELL BY 226 BILLION TO 10569 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY SHORTENED BY TWO DAYS TO 60 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9401060086 940106 FEDERAL PANEL SEEN RECOMMENDING LAWS THAT FAVOR UNIONS WASHINGTON A FEDERAL COMMISSION SET UP TO LOOK AT LABORMANAGEMENT RELATIONS IS LIKELY TO RECOMMEND CHANGES THAT WILL TILT LABOR LAWS TOWARD UNIONS FORMER NATIONAL LABOR RELATIONS BOARD GENERAL COUNSEL JERRY HUNTER SAID MR HUNTER SAID IN AN INTERVIEW THAT HE EXPECTS THE PANEL CALLED THE COMMISSION ON WORKERMANAGEMENT RELATIONS TO PROVIDE A SPRINGBOARD FOR THE CLINTON ADMINISTRATION TO RETURN TO THE GOOD GRACES OF ORGANIZED LABOR RELATIONS HAVE BEEN STRAINED BETWEEN THE WHITE HOUSE AND UNIONS SINCE THE ADMINISTRATION STRONGLY BACKED THE NORTH AMERICAN FREE TRADE AGREEMENT SPECIFICALLY MR HUNTER BELIEVES THAT THE PANEL WILL PROPOSE SPEEDING UP THE MULTISTEP UNIONELECTION PROCESS A CHANGE THAT ORGANIZED LABOR HAS BEEN SEEKING FOR SEVERAL YEARS THE CURRENT SYSTEM FORCES UNIONS TO COLLECT SIGNATURES BEFORE THEY PETITION FOR FORMAL ELECTIONS THE PROCESS CAN TAKE YEARS AND DRAIN UNION COFFERS MR HUNTER SAID THE PANEL ALSO IS LIKELY TO BACK MORE SEVERE REMEDIES FOR VIOLATIONS OF LABOR LAW MOST CHARGES OF VIOLATIONS ARE BROUGHT BY UNIONS AGAINST MANAGEMENT AND ANY STIFFENING OF PENALTIES COULD MAKE COMPANY EXECUTIVES MORE RETICENT ABOUT FIGHTING UNIONS HE SAID MR HUNTER WHO WAS GENERAL COUNSEL AT THE AGENCY UNDER PRESIDENT BUSH WILL BE JOINING ST LOUISBASED BRYAN CAVE MCPHEETERS & MCROBERTS TO PRACTICE LABOR LAW MR HUNTER SAID HE IS OPTIMISTIC THAT PROPOSALS SUCH AS ESTABLISHING SEVERE PENALTIES OR MAKING UNION VOTES EASIER CAN BE STOPPED IN CONGRESS THE FACT THIS PROCESS WILL HAVE TO END UP IN CONGRESS WILL GIVE AN OPPORTUNITY TO SHOW THAT THE NLRB HAS BEEN EVENHANDEDNOT PROMANAGEMENT AS UNIONS HAVE ARGUED HE SAID MR HUNTER ALSO SAID THERE WILL BE SEVERAL SIGNIFICANT NEW CASES TO DETERMINE THE LEGALITY OF WORKERMANAGEMENT TEAMS IN CORPORATE AMERICA TWO MAJOR DECISIONS BY THE BOARD OVER THE PAST YEAR HAVE CAST DOUBT ON JUST HOW TO STRUCTURE THOSE TEAMS AND WHETHER THEY ARE LEGAL PARTICULARLY IN FIRMS WITH UNIONIZED WORK FORCES 9401060085 940106 COMPUTERS NEW SOFTWARE HELPS NETWORKS GET SMARTER BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL THE ERA OF INTELLIGENT COMPUTER NETWORKS FOR THE MASSES IS OFFICIALLY UNDER WAY TOTEM OF THE NEW AGE IS TELESCRIPT A TECHNOLOGY THAT WILL BE DEMONSTRATED TODAY BY SOFTWARE CONSORTIUM GENERAL MAGIC INC AND ITS LARGEST MEMBER AMERICAN TELEPHONE & TELEGRAPH CO TELESCRIPT ALLOWS COMPUTER USERS TO EASILY SEND ELECTRONIC AGENTS OUT ON COMPUTER NETWORKS TO FIND AND FILTER INFORMATION THESE AGENTS CAN PERFORM IN THE USERS' STEAD SUCH CHORES AS SHOPPING OR RETRIEVING NEWS TELESCRIPT CAN ALSO FILTER MESSAGES SELECT THE MOST APPROPRIATE FORM OF WIRED OR WIRELESS TRANSMISSION AND LINK DISPARATE TYPES OF COMPUTERS AND OTHER DEVICES AT&T PLANS TO HAVE A TELESCRIPTBASED NETWORK CALLED PERSONALINK UP AND RUNNING BY THIS SUMMER OVER THE NEXT DECADE GENERAL MAGIC'S BACKERS EXPECT SUCH INTELLIGENT NETWORKS TO GRADUALLY FORM LOCAL AND NATIONAL ELECTRONIC MARKETPLACES WHERE MILLIONS OF BUYERS OF PRODUCTS AND SERVICES DIRECTLY MEET SELLERS SUCH A DEVELOPMENT WOULD AMONG OTHER THINGS FUEL THE DEMAND FOR ONLINE COMPUTER SERVICES AND FOR HANDHELD PERSONAL INTELLIGENT COMMUNICATORS OR PICS AND ERODE THE MARKET SHARE OF TRADITIONAL RETAILERS AND DISTRIBUTORS IT'S A PRETTY BIG IDEA THAT HAS BEEN IN THE WORKS FOR 20 YEARS THE IDEA OF SENDING A PROGRAM FAR AWAY TO OPERATE ON YOUR BEHALF BUT THIS LOOKS LIKE ITS FIRST COMMERCIAL APPEARANCE SAYS BOB METCALFE A PIONEER IN COMPUTER NETWORKING AND NOW PUBLISHER OF INFOWORLD A COMPUTERTRADE PUBLICATION HERE IS HOW TELESCRIPT WORKS THE USER OF A DEVICE SUCH AS A PIC OR PC HAS A BUILTIN SOFTWARE ENGINE OR MODULE THAT INTERPRETS INSTRUCTIONS FROM THE USER THE INSTRUCTIONS ARE SENT IN THE FORM OF AN AGENT EITHER DIRECTLY TO SERVICE PROVIDERS SUCH AS TRAVEL AGENCIES AIRLINES NEWS SERVICES AND BANKS OR TO A HOST NETWORK SUCH AS PERSONALINK DESIGNED TO BE A CENTRALIZED ELECTRONIC MEETING PLACE FOR BUYERS AND SELLERS PERSONALINK FOR EXAMPLE MATCHES THE AGENT SENT BY THE USER TO BUY SAY A 1955 THUNDERBIRD WITH SELLERS OF THE CAR EACH SELLER HAS A COMPUTER WITH ITS OWN TELESCRIPT ENGINE THAT CAN TALK TO THE USER'S AGENT THE SELLERS' AGENTS AUTOMATICALLY RESPOND WITH BIDS THAT ARE PLACED IN THE USER'S PERSONALINK MAILBOX THERE ARE DOUBTERS HOWEVER WHO ARE CONCERNED MAINLY ABOUT THE COMPLEXITY OF BUILDING UP THE FIRST INTELLIGENT NETWORKS OF BUYERS AND SELLERS AND ABOUT THE SPEED AT WHICH PEOPLE WILL COTTON TO THE IDEA OF AUTOMATED ELECTRONIC MESSAGING EARLIER ATTEMPTS TO CREATE ELECTRONIC MARKETPLACES FOR SHOPPING BANKING AND NEWS RETRIEVAL WERE EXPENSIVE FLOPS THE CURRENT LEADING PROVIDERS OF ONLINE SERVICES ARE EXPERIENCING SOLID GROWTH NOW BUT STILL HAVE PENETRATED ONLY 5 OF THE PERSONALCOMPUTER UNIVERSE MOREOVER WHILE TELESCRIPT PERFORMS FLAWLESSLY IN SENDING OUT AGENTS GENERAL MAGIC AND AT&T CONCEDE IT MUST BE TWEAKED FOR GREATER PROCESSING SPEEDS IF IT IS TO SUPPORT A NETWORK AS BIG AS PERSONALINK MEANWHILE ALTHOUGH NO IMMEDIATE COMPETITORS LOOM OTHER POWERFUL COMPANIES SUCH AS ORACLE CORP SUN MICROSYSTEMS INC AND MICROSOFT CORP ARE WORKING ON THEIR OWN VERSIONS OF SMART APPLICATIONS THAT MAY NOT REQUIRE SMART NETWORKS LIKE OTHER TECHNOLOGICAL PIONEERS TELESCRIPT COULD BE SURPASSED BY A CLEVER ALTERNATIVE OR MUTATION BUT TELESCRIPT'S BACKERS ARE CONVINCED IT IS A BREAKTHROUGH BECAUSE ITS INTELLIGENT AGENTS WILL SAVE CONSUMERS A LOT OF TIME AND FIND PRODUCTS SERVICES AND INFORMATION THAT ARE OFTEN HARD OR IMPOSSIBLE TO FIND THIS IS THE BEGINNING OF CYBERSPACE WHERE YOU YOUR WISHES AND WANTS CAN BE REPRESENTED BY AGENT TECHNOLOGY SAYS MARC PORAT GENERAL MAGIC'S CHIEF EXECUTIVE OFFICER TELESCRIPT WAS DEVELOPED BY GENERAL MAGIC OVER THE PAST 3 1/2 YEARS AND IS NOW BEING SHIPPED TO THE CONSORTIUM'S PARTNERS WHICH ALONG WITH AT&T ARE MOTOROLA INC APPLE COMPUTER INC AND THE WORLD'S THREE BIGGEST CONSUMERELECTRONICS CONCERNS SONY CORP MATSUSHITA ELECTRIC INDUSTRIAL CO AND PHILIPS ELECTRONICS NV GENERAL MAGIC BASED IN MOUNTAIN VIEW CALIF IS ALSO SHIPPING MAGIC CAP A NEW OPERATING SYSTEM THAT FACILITATES THE USE OF ELECTRONIC AGENTS ON PICS PERSONAL COMPUTERS AND IN THE FUTURE SMART PHONES AND INTERACTIVE TELEVISION SETS BECAUSE MOST PEOPLE CAN'T EVEN PROGRAM THEIR VIDEOCASSETTE RECORDERS GENERAL MAGIC DOESN'T EXPECT THEM TO PROGRAM AGENTS IT DOES EXPECT THOUSANDS OF INDEPENDENT SOFTWARE DEVELOPERS AND PURVEYORS OF SERVICES AND PRODUCTS TO OFFER SIMPLE SOFTWARE MODULES ONLINE WHICH GREATLY SIMPLIFY THE SENDING OF AN AGENT THESE MODULES WILL ALLOW USERS TO SEND OUT AN AGENT TO FIND FOR INSTANCE A HOTEL AIRLINE AND CAR FOR A VACATION BY SIMPLY SELECTING THE NECESSARY INSTRUCTIONS WITH A CLICK OF A MOUSE OR TAP OF A STYLUS FOR EXAMPLE ESHOP INC A SAN MATEO CALIF SOFTWARE COMPANY HAS LICENSED TECHNOLOGY TO AT&T PERSONALINK THAT ALLOWS MERCHANTS EASILY TO CUSTOMIZE PROGRAMS THAT GIVE SHOPPERS TWO CHOICES A VIRTUAL TOUR OF THEIR STORES OR ALTERNATIVELY A SHOPPING ASSISTANT WHO CAN PROCESS ORDERS FROM AN ELECTRONIC AGENT THIS SOFTWARE WILL BE AVAILABLE WHEN PERSONALINK STARTS OPERATION OTHER INITIAL PERSONALINK SERVICES WILL INCLUDE AN ELECTRONIC MAIL SERVICE THAT ASSIGNS PRIORITIES TO MESSAGES A DAILY NEWS SERVICE FROM MEAD DATA CENTRAL AND A CONNECTION TO THE SKYTEL CORP PAGING NETWORK ABOUT 20 OTHER SOFTWARE DEVELOPERS SUCH AS NEWS ELECTRONIC DATA INC A NEWS CORP UNIT WILL ANNOUNCE APPLICATIONS DESIGNED INITIALLY JUST FOR THE MAGIC CAP OPERATING SYSTEM OR TO LINK MAGIC CAP DEVICES TO ONLINE SERVICES INDUSTRY EXPERTS PREDICT THAT TELESCRIPT AND MAGIC CAP WILL HELP ACCELERATE THE GROWTH IN SUBSCRIBERS TO ONLINE SERVICES AND RESEARCH FIRMS SUCH AS BIS STRATEGIC DECISIONS NORWELL MASS PREDICT THE NEW TECHNOLOGIES WILL HELP FOSTER GROWTH FOR PORTABLE WIRELESS DEVICES BIS EXPECTS ANNUAL SHIPMENTS OF SUCH DEVICES TO REACH TWO MILLION IN 1997 BUT IT MAY TAKE UP TO A DECADE FOR A UBIQUITOUS AGENTBASED ELECTRONIC MARKETPLACE TO EMERGE PARTLY BECAUSE OF INITIALLY HIGH COSTS FOR HANDHELD DEVICES AND FOR TRANSACTION AND TRANSMISSION FEES THEN THERE IS THE CHICKENANDEGG PROBLEM SELLERS WILL BE RELUCTANT TO INVEST IN AGENTBASED SERVICES UNTIL THEY SEE SUBSCRIBERS AND VICE VERSA AT&T IS IN EFFECT CREATING A BIG CHICKEN BY POURING AN ESTIMATED 20 MILLION TO 30 MILLION SO FAR INTO PERSONALINK WILLIAM FALLON AT&T'S DIRECTOR OF MARKETING FOR CONSUMER MESSAGING SAYS THE COMPANY PLANS TO KEEP ITS FEES LOW AND IS PREPARED FOR A SLOW GRADUAL ADOPTION OF ITS SERVICE WE DECIDED TO BUILD A NEW NETWORK SERVICE AROUND TELESCRIPT BECAUSE IT GIVES US THE ABILITY TO GIVE CUSTOMERS THESE PERSONALIZED INTELLIGENT AGENTS MR FALLON SAYS IT'S NOT JUST INFORMATION RETRIEVAL OR SHOPPING OR MESSAGING WHICH ANY NETWORK CAN DO THAT'S A BOLD STEP THAT IS MORE COSTLY TIMECONSUMING AND DIFFICULT THAN OTHER DECISIONS WE COULD HAVE MADE BUT I WOULD HUMBLY PREDICT IT'S THE WAY NETWORKS WILL BROADLY EVOLVE 9401060084 940106 INTERNATIONAL STATE DEFENDS DECISION TO OUST BANESTO BOARD BANK OF SPAIN DOCUMENT SAYS ACCOUNTS FAILED TO REFLECT PERFORMANCE BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID SPAIN'S CENTRAL BANK ISSUED A DOCUMENT OUTLINING THE REASONS BEHIND ITS DECISION LAST WEEK TO OUST THE CHAIRMAN AND BOARD OF BANCO ESPANOL DE CREDITO SPAIN'S FOURTHLARGEST BANK THE ACCOUNTS OF BANESTO AS THE BANK IS KNOWN FAIL TO REFLECT ITS PERFORMANCE IN 1991 AND 1992 AND THE REORGANIZATION PLAN IT PRESENTED TO THE BANK OF SPAIN IN NOVEMBER WAS COMPLETELY UNREALISTIC THE DOCUMENT INDICATES FOR INSTANCE BANESTO PROJECTED PROFIT FOR 1994 OF 50 BILLION PESETAS 3485 MILLION EVEN THOUGH THE BANK WASN'T GENERATING INCOME FICTITIOUS OR OVERVALUED ASSETS UNCALCULATED CREDIT RISKS AND INFLATED CAPITAL GAINS ON ASSET SALES ARE SOME OF THE FACTORS THAT EXPLAIN WHY BANESTO FACED A FINANCIAL SHORTFALL OF AT LEAST 500 BILLION PESETAS AT JUNE 30 1993 COMPARED WITH CAPITAL AND RESERVES OF 359 BILLION PESETAS ACCORDING TO THE BANK OF SPAIN REPORT MEANWHILE FORMER MANAGEMENT AT BANESTO ISSUED ITS FIRST STATEMENT SINCE IT WAS FIRED DEC 28 CLARIFYING THAT IT HADN'T YET RESPONDED TO THE BANK OF SPAIN'S TAKEOVER DECISION BANK OF SPAIN OFFICIALS SAID THEY EXPECTED THE FORMER BANESTO CHAIRMAN MARIO CONDE AND OTHER FORMER BOARD MEMBERS TO TAKE LEGAL ACTION AGAINST THEM MR CONDE IS EXPECTED TO ARGUE THAT THE FIGURES PRESENTED IN THE BANK OF SPAIN DOCUMENT ARE EXAGGERATED AND TO TRY TO FAULT THE CENTRAL BANK'S MOVE ON TECHNICAL GROUNDS UNDER SPANISH LAW MR CONDE HAS 15 DAYS FROM DEC 28 TO PRESENT HIS CASE AGAINST THE BANK OF SPAIN BEFORE THE MINISTRY OF ECONOMY THE UNDERFUNDING OF PROVISIONS AND THE OVERVALUATION OF ASSETS PRESENT POTENTIAL LOSSES FOR THE BANK OF 341 BILLION PESETAS THE CENTRAL BANK SAID THIS FIGURE DOESN'T INCLUDE PROVISIONS FOR LOSSES ON BANESTO'S STAKE IN ITS INDUSTRIAL HOLDING COMPANY CORP INDUSTRIAL Y FINANCIERA DE BANESTO NOR THE LACK OF PROVISIONS FOR LOANS ESTIMATED AT 28 BILLION PESETAS EXTENDED TO EMPLOYEES FOR THE PURCHASE OF THE BANK'S TREASURY STOCK SOME 3398 BILLION PESETAS OF THE BANK'S LOANS OF MORE THAN 250 MILLION PESETAS EACH FOR EXAMPLE SHOULD BE RECLASSIFIED AS NONPERFORMING WHICH REQUIRES ADDITIONAL PROVISIONING OF 1449 BILLION PESETAS THE CENTRAL BANK SAID A YEAR AGO THE CENTRAL BANK ESTIMATED THESE RECLASSIFICATIONS AT ONLY 120 BILLION PESETAS AND THEIR PROVISIONING REQUIREMENTS AT 528 BILLION PESETAS IN DETAILING BANESTO'S ALLEGED BOOKKEEPING SLEIGHT OF HAND THE BANK OF SPAIN DESCRIBES HOW BANESTO EXTENDED LOANS OF 619 BILLION PESETAS TO OASIS INTERNATIONAL GROUP A SPANISH LEISURE COMPANY IN WHICH THE BANK ALSO HAS A DIRECT AND INDIRECT STAKE VALUED AT 203 BILLION PESETAS THROUGH THE RELATIONSHIP BANESTO HID LOSSES FOR OASIS AND WAS IN A POSITION TO INCLUDE UNWARRANTED PROFITS ON ITS ACCOUNTS AND THOSE OF OTHER COMPANIES IN ITS GROUP THE REPORT SAID THE BANK OF SPAIN CALCULATES BANESTO'S UNACCOUNTED LOSSES ON ITS BUSINESS WITH OASIS AT MORE THAN 25 BILLION PESETAS ALSO INCLUDED IN THE 341 BILLION FIGURE ARE CAPITAL LOSSES OF 715 BILLION PESETAS THAT BANESTO FACED ON ITS STOCK INVESTMENT PORTFOLIO AT JUNE 30 1993 NOT INCLUDING ITS STAKE IN CORP INDUSTRIAL & FINANCIERA FOR EXAMPLE BANESTO'S SHAREHOLDING IN THE OFFSHORE COMPANIES BRIGHTSUN LTD AND BANESTO HOLDING LTD SUFFERED CAPITAL LOSSES OF 358 BILLION PESETAS CAUSED PRIMARILY BY EXCHANGERATE DIFFERENCES USED TO ARTIFICIALLY INFLATE THE TWO COMPANIES' NET WORTH THE REPORT SAYS IN ANOTHER INSTANCE BANESTO REPORTED UNJUSTIFIED PROFIT FROM ITS 28 STAKE IN SPANISH INSURER LA UNION & EL FENIX ESPANOL YESTERDAY ALBERTO DE LA PUENTE THE ADMINISTRATOR WHO HAS BEEN IN CHARGE OF LA UNION SINCE SPANISH AUTHORITIES REMOVED ITS MANAGEMENT DEC 30 SAID LA UNION HAS REVISED ITS 1992 ACCOUNTS TO SHOW A LOSS OF 118 BILLION PESETAS IN 1992 INSTEAD OF A PROFIT OF 408 MILLION PESETAS I JUST DON'T KNOW WHAT WAS GOING THROUGH THEIR HEADS FOR THEM TO REPORT A PROFIT HE SAID IT'S VERY SURPRISING LA UNION HE NOTED WILL MERGE WITH AGF SEGUROS THE SPANISH UNIT OF FRENCH INSURER ASSURANCES GENERALES DE FRANCE THE NATIONAL STOCK EXCHANGE COMMISSION APPROVED THE OPERATION TUESDAY AFTER MONTHS OF HEATED DEBATE BETWEEN AGF WHICH OWNS 24 OF LA UNION AND BANESTO OVER THE SPANISH INSURER'S ACCOUNTS IN ITS REPORT THE BANK OF SPAIN ALSO REVEALS THAT BANESTO FACES CAPITAL LOSSES OF 81 BILLION PESETAS ON ITS 80 STAKE IN CORP INDUSTRIAL Y FINANCIERA AS OF JUNE 1993 IT ALSO SHOWED A 13 BILLION PESETA SHORTFALL ON THE HOLDING COMPANY'S PROVISIONS LASTLY THE CENTRAL BANK SAYS THE BANK HAD 201 BILLION PESETAS OF EXPENDITURES INCLUDED AS ASSETS ON ITS ACCOUNTS IN JUNE BANKERS AND ANALYSTS SAID THEY WERE ASTONISHED THAT BANESTO WAS ABLE TO PUSH ITS ACCOUNTS PAST AUDITORS AND GOVERNMENT AUTHORITIES FOR AS LONG AS IT DID MANY WERE CONCERNED THAT THE BANK'S ACCOUNTS ARE SO OBFUSCATED THAT ITS FINANCING NEEDS COULD BE FAR HIGHER THAN THOSE OUTLINED BY THE CENTRAL BANK POSSIBLY DOUBLE THE AMOUNT 9401060082 940106 ON ARKANSAS SEX NOT INHALING AND WHITEWATER BY ROBERT L BARTLEY WHEN THE GENNIFER FLOWERS TAPES HIT THE HEADLINES DURING THE 1992 CAMPAIGN OUR ALBERT HUNT WROTE A COLUMN DEFENDING CANDIDATE BILL CLINTON AGAINST HER SORDID SLEAZY STORY AND ALSO LAYING OUT CONDITIONS THAT MIGHT MAKE A CANDIDATE'S SEX LIFE PERTINENT FOR EXAMPLE ONE IF THE CANDIDATE LIES WHILE MOST OF US WOULD INSTINCTIVELY AGREE THE EXCEPTION IS INTERESTING WE DON'T CARE WHETHER HE DID IT BUT WE DO CARE IF HE DID AND DENIES IT WHY PRECISELY WELL WE TEACH LITTLE CHILDREN NOT TO LIE BECAUSE IT'S WRONG MORALLY BUT ALSO BECAUSE IT OFTEN HAS SERIOUS PRACTICAL CONSEQUENCES IF YOU TELL ONE LIE YOU TYPICALLY HAVE TO COVER UP BY TELLING MORE AFTER A WHILE YOU REACH THE COMPLETELY IMPLAUSIBLE AND PEOPLE STOP BELIEVING YOU AND THEY DON'T BELIEVE YOU IN THE NEXT PINCH EVEN IF THEN YOUR STORY IS TRUE AT THE PRESIDENTIAL LEVEL WE CALL THIS CREDIBILITY A LEADER WHO ISN'T BELIEVED IS NOT LIKELY TO BE EFFECTIVE A PRESIDENT NEEDS BONDS OF TRUST WITH THE PEOPLE THE SHREDDING OF THESE BONDS NOT SOME TWOBIT BURGLARY IS WHY PRESIDENT NIXON HAD TO LEAVE OFFICE ELECTION AS PRESIDENT GIVES YOU A BIRTHRIGHT OF CREDIBILITY BUT YOU CAN ONLY GO TO THE WELL SO MANY TIMES AND HERE IS THE REAL DANGER TO PRESIDENT CLINTON IN THE NEW SEX ALLEGATIONS RAISED BY STATE TROOPERS IN ARKANSAS THEY ERODE CREDIBILITY JUST WHEN HE NEEDS ALL HE CAN MUSTER TO DEAL WITH THE FINANCIAL QUESTIONS WE CALL THE WHITEWATER ISSUE SEXUAL ISSUES ARE ALWAYS PROBLEMATICAL OF COURSE IT IS UNSEEMLY TO GOSSIP ABOUT THE MOST PRIVATE ASPECTS OF SOMEONE ELSE'S LIFE AND THERE'S NO CONSENSUS ON STANDARDS TO APPLY TO POLITICAL LEADERS WHILE SOME WOULD PUNISH ANY INFIDELITY OTHERS SCOFF THAT RULERS HAVE ALWAYS HAD CONCUBINES AND EVEN HAREMS STILL OTHERS STARTING HERE WOULD SAY THAT DWIGHT EISENHOWER SLEEPING WITH HIS DRIVER IN THE MIDST OF WORLD WAR II IS ONE THING WHILE THE WANTON PROMISCUITY THE TROOPERS ALLEGE IN ARKANSAS IS QUITE ANOTHER THESE ALLEGATIONS WERE FIRST DETAILED BY DAVID BROCK IN THE AMERICAN SPECTATOR AND THERE WAS AN INITIAL ATTEMPT TO IMPUGN HIS SCOOP WITH THE LABEL CONSERVATIVE AS IF THAT WERE A DREAD DISEASE BUT THE LOS ANGELES TIMES QUICKLY CONFIRMED THE ESSENCE OF THE BROCK REPORT BY PUBLISHING ITS OWN EXTENSIVE INVESTIGATION THE NET IS THAT TWO TROOPERS TOLD THE SAME STORIES ON THE RECORD TO TWO PUBLICATIONS AND WERE SUPPORTED BY TWO OTHER TROOPERS TALKING ON A NOTFORATTRIBUTION BASIS AMONG OTHER THINGS THEY SUPPORT MISS FLOWERS'S ORIGINAL ACCOUNT THERE ARE ALSO HER TAPES PLUS THE LA TIMES STUDY OF OFFICIAL PHONE RECORDS SUPPORTING AT LEAST ONE PART OF THE TROOPERS' STORY VOTERS WILL HAVE TO MAKE UP THEIR OWN MINDS ON BOTH TRUTH AND RELEVANCE BUT WITH DUE RESPECT FOR THE PROBLEM OF PROVING A NEGATIVE THE PRESIDENTIAL RESPONSE HAS SCARCELY BUILT CONFIDENCE THE WHITE HOUSE BRANDED THE TROOPERS' CHARGES AS OUTRAGEOUS BUT WHEN A REPORTER ASKED SO NONE OF THIS EVER HAPPENED THE PRESIDENT SUFFERED A FIT OF STAMMERING MR BROCK MAKES THE POINT THAT THE ORIGINAL GENNIFER FLOWERS DENIALS ALSO HAD A SLIPPERY QUALITY IN CONFESSING MARIJUANA EXPERIMENTS CANDIDATE CLINTON PROTESTED THAT HE DIDN'T INHALE ARE THE PRESENT PROTESTS OF THE SAME ILK AS THE TROOPERS' STORY SPREAD BETSEY WRIGHT THE SOMETIME CLINTON AIDE WHO POPULARIZED THE PHRASE BIMBO ERUPTION DECAMPED TO LITTLE ROCK ALONG THE WAY CONSULTING HER FAVORITE PRIVATE EYE SAN FRANCISCOBASED JACK PALLADINO SOON STORIES BEGAN TO APPEAR ABOUT THE TROOPERS' WARTS A SEX HARASSMENT CHARGE AGAINST ONE TROOPER TURNED OUT TO HAVE BEEN DISMISSED AN INSURANCE COMPANY LITIGATOR CHARGED THE TWO TROOPERS LIED IN AN INSURANCE SCAM IT TURNS OUT THEY DID GET DRUNK AND WRECK A STATE CAR BUT THE LITIGATION IS ABOUT WHO SHOULD PAY MEDICAL BILLS AND MS WRIGHT PROUDLY DISPLAYED AN AFFIDAVIT FROM TROOPER DANNY FERGUSON SAYING PRESIDENT CLINTON NEVER OFFERED OR INDICATED A WILLINGNESS TO OFFER ANY TROOPER A JOB IN EXCHANGE FOR SILENCE OR HELP IN SHAPING THEIR STORIES REINTERVIEWED BY THE LA TIMES MR FERGUSON SAID YES THE PRESIDENT CALLED YES THEY TALKED ABOUT WHAT TROOPERS WERE GOING TO SAY ABOUT THE SEX CHARGES YES THEY TALKED ABOUT TWO DIFFERENT JOBS BUT THE QUID PRO QUO WAS NEVER EXPLICITLY EXPRESSED THAT IS HE DIDN'T INHALE GETTING INTO A SPITTING MATCH WITH HIS OWN FORMER SECURITY GUARDS WILL SURELY DEPLETE A PRESIDENT'S RESERVOIR OF CREDIBILITY WORSE THIS AMPLIFIES ALL THE DOUBTS IN THE WHITEWATER CASE HERE THE SUSPICION IS THAT FUNDS FROM A FAILING SAVINGS AND LOAN WERE DIVERTED INTO WHITEWATER DEVELOPMENT A REAL ESTATE VENTURE PARTLY OWNED BY THE CLINTONS WHATEVER ELSE THE DEFENSIVE THEMES SOUND FAMILIAR IT'S AN OLD STORY WE HEAR FOR EXAMPLE IS THAT A DENIAL OR NOT IT WAS A MONEYLOSING VENTURE AS IF IT WOULD BE PERFECTLY OK TO FLOAT OFF YOUR REAL ESTATE INVESTMENT LOSS ON THE TAXPAYER THROUGH DEPOSIT INSURANCE SO LONG AS NOTHING NEW GETS INTO YOUR OWN POCKET THE LOSS WAS NEVER DEDUCTED FOR TAX PURPOSES BUT WAS DOCUMENTED IN AN ACCOUNTANT'S REPORT THOUGH AS THE JOURNAL'S BRUCE INGERSOLL JUST DEMONSTRATED THE REPORT IGNORES MAJOR TRANSACTIONS THE CLINTONS WERE PASSIVE SHAREHOLDERS THOUGH AT ONE POINT HILLARY REQUESTED A POWER OF ATTORNEY OVER THE WHOLE BUSINESS THE RECORDS FROM VINCENT FOSTER'S OFFICE WILL BE RELEASED THOUGH IT TURNS OUT ONLY TO THE JUSTICE DEPARTMENT AND IT FURTHER TURNS OUT ONLY AFTER A DELAY FOR INVENTORY AND OF COURSE WE'VE SAID ENOUGH THE DAMAGE FROM THE TROOPERS IS CONTAINED BY A NATURAL IN THIS LIBERTINE AGE EVEN TOUCHING RELUCTANCE TO TRAFFIC IN SEXUAL GOSSIP BUT IN BOTH CASES THE EXCUSES ARE SOUNDING INCREASINGLY LAME WHITEWATER COULD BECOME BILL CLINTON'S CREDIBILITY SINKHOLE SIMPLY BECAUSE NO ONE IS INHIBITED IN TALKING ABOUT DIRTY MONEY MR BARTLEY IS EDITOR OF THE JOURNAL SEE RELATED LETTER LETTERS TO THE EDITOR TROOPER AFFIDAVIT IS A FARCE WSJ JAN 11 1993 9401060081 940106 INTERNATIONAL METALLGESELLSCHAFT AG BANK CREDITORS AGREE TO HELP RESCUE FIRM FRANKFURT METALLGESELLSCHAFT AG AND ITS BANK CREDITORS AGREED TO RAISE 27 BILLION MARKS 16 BILLION AS PART OF A RESCUE PLAN FOR THE TROUBLED GERMAN METALS AND ENGINEERING COMPANY THE COMPANY PLANS TO INCREASE EQUITY BY ISSUING 56 MILLION NEW SHARES FOR 250 MARKS EACH 144 RAISING 14 BILLION MARKS THE STEP WOULD INCREASE THE COMPANY'S NOMINAL EQUITY CAPITAL BY 280 MILLION MARKS FROM THE CURRENT 4418 MILLION MARKS GERMAN EQUITY COMMONLY CARRIES A NOMINAL FACE VALUE OF 50 MARKS A SHARE THE COMPANY DIDN'T PROVIDE A DATE FOR THE NEW SHARE OFFERING BANK CREDITORS ALSO AGREED TO A DEBTFOREQUITY SWAP TO GENERATE ANOTHER 13 BILLION MARKS IN FRESH CASH FOR THE COMPANY UNDER THE PROPOSAL ITS ROUGHLY 100 BANK CREDITORS WOULD CONVERT METALLGESELLSCHAFT BANK DEBT INTO SUBORDINATED CONVERTIBLE PARTICIPATION EQUITY A GERMAN NONVOTING EQUITY INSTRUMENT THAT CAN BE CONVERTED INTO STOCK AT A LATER DATE METALLGESELLSCHAFT ALSO WILL GET A NEW 500 MILLIONMARK CREDIT LINE THE STEPS ARE AIMED AT RESTORING CONFIDENCE IN THE GERMAN COMPANY AFTER IT RAN INTO DIFFICULTIES LATE LAST YEAR FROM A COMBINATION OF OPERATING LOSSES DEEP EXPOSURE IN OIL FUTURES MARKETS AND HEAVY SHORTTERM BANK DEBT ACCUMULATED IN FOUR YEARS OF RAPID EXPANSION THE COMPANY ALSO IS EXPECTED TO ANNOUNCE A SERIES OF DIVESTITURES AND STAFF LAYOFFS IN COMING WEEKS 9401060080 940106 WHO'S NEWS WHITE WILL RETIRE AS HEAD OF SOFTWARE AT TEXAS INSTRUMENTS DALLAS TEXAS INSTRUMENTS INC SAID THE PRESIDENT OF ITS LOSSRIDDEN SOFTWARE DIVISION IS TAKING EARLY RETIREMENT THE ELECTRONICS GIANT SAID JOHN W WHITE 55 YEARS OLD WILL LEAVE THE COMPANY JAN 31 MR WHITE A CORPORATE VICE PRESIDENT HAS BEEN PRESIDENT OF TI'S INFORMATION TECHNOLOGY BUSINESS SINCE 1989 TURNING WHAT BEGAN AS THE COMPANY'S INTERNAL COMPUTER OPERATION INTO A SOFTWARE HEAVYWEIGHT WITH MORE THAN 250 MILLION IN ANNUAL SALES BUT THE UNIT HAS REPORTED LOSSES IN RECENT QUARTERS PROMPTING CONTINUING CRITICISM FROM ANALYSTS WHO THINK TI SHOULD STICK TO ITS FLAGSHIP COMPUTERCHIP BUSINESS IT HAS BEEN A DRAIN ON TI FOR SOME TIME SAID WILLIAM J MILTON JR AN ANALYST AT BROWN BROTHERS HARRIMAN IN NEW YORK I WOULD APPLAUD A MOVE TO SPIN IT OFF IN A MOVE LAST MONTH THAT ANALYSTS SAY REFLECTED THE COMPANY'S DISAPPOINTMENT IN THE UNIT'S RESULTS TI NAMED WILLIAM F HAYES FORMERLY CHIEF OF TI'S DEFENSE BUSINESS AS A CORPORATE EXECUTIVE VICE PRESIDENT IN CHARGE OF THE SOFTWARE UNIT BYPASSING MR WHITE IN AN INTERVIEW MR WHITE SAID THERE'S NOT A DIRECT CORRELATION BETWEEN MR HAYES'S PROMOTION AND HIS DECISION TO RETIRE I'VE BEEN THINKING ABOUT THIS FOR A COUPLE OF YEARS HE SAID A TI SPOKESWOMAN SAID MR HAYES WILL ASSUME MR WHITE'S DUTIES MR WHITE SAID HE'S PROUD OF THE PROGRESS THE UNIT MADE IN MOVING FROM MAINFRAME COMPUTER TECHNOLOGY TO SOFTWARE BUILT FOR NETWORKS OF SMALLER COMPUTERS AND HE POINTS OUT THAT TI'S PRINTER AND NOTEBOOK COMPUTER MANUFACTURING OPERATION WHICH WAS UNDER HIS CONTROL UNTIL A REORGANIZATION IN NOVEMBER HAS BEEN A STRONG PERFORMER RECENTLY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY TI STOCK JUMPED 4 TO 66 A SHARE 9401060079 940106 LATE DECEMBER VEHICLE SALES PACE DECLINED BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE SELLING PACE OF NORTH AMERICANBUILT PASSENGER CARS AND LIGHT TRUCKS SLID IN THE FINAL 10 DAYS OF DECEMBER TO THE LOWEST LEVEL SINCE THE SUMMER LARGELY REFLECTING SLOWER SALES DURING THE HOLIDAY SEASON NORTH AMERICANBUILT VEHICLES SOLD AT A SEASONALLY ADJUSTED SELLING RATE OF 109 MILLION IN THE LATEST PERIOD DOWN SUBSTANTIALLY FROM A STRONG 129 MILLION SELLING PACE IN THE PREVIOUS 30DAY PERIOD THE SELLING RATE EASED SLIGHTLY FROM THE 11 MILLION PACE IN THE LAST 10 DAYS OF DECEMBER 1992 ALTOGETHER AMERICANS BOUGHT 346761 NORTH AMERICANBUILT CARS MINIVANS SPORTUTILITY VEHICLES AND LIGHT TRUCKS IN THE FINAL 10 DAYS OF DECEMBER THAT'S OFF 81 FROM THE 377499 VEHICLES SOLD IN THE YEAREARLIER PERIOD WHEN CAR COMPANIES OFFERED MORE SALES INCENTIVES THIS MARKED THE LAST PERIOD THAT AUTO MAKERS WILL REPORT 10DAY CAR SALES DATA LAST MONTH GENERAL MOTORS CORP AND FORD MOTOR CO SAID THEY WOULD STOP RELEASING THE 10DAY VEHICLE SALES CHRYSLER CORP QUIT REPORTING 10DAY SALES IN 1991 ALL OF THE AUTO MAKERS WILL NOW REPORT VEHICLESALES FIGURES ON A MONTHLY BASIS FOR THE ENTIRE MONTH OF DECEMBER AUTO MAKERS SOLD 1119541 NORTH AMERICANBUILT AND IMPORTED CARS AND LIGHT TRUCKS UP 68 FROM A YEAR EARLIER THAT IS THE EQUIVALENT OF AN 119 MILLION SELLING RATE COMPARED WITH AN 112 MILLION PACE A YEAR EARLIER A TOTAL OF 139 MILLION VEHICLES WERE SOLD IN 1993 UP 83 FROM THE 129 MILLION VEHICLES SOLD A YEAR EARLIER FORD AND CHRYSLER GAINED A BIGGER SHARE OF THE US VEHICLE MARKET LAST YEAR WHILE GM'S SHARE DROPPED FORD WHICH MAKES THE BESTSELLING PASSENGER CAR AND LIGHT TRUCK IN THE US SAW ITS SHARE OF THE US CAR AND LIGHTTRUCK MARKET GROW TO 256 UP FROM 248 A YEAR EARLIER CHRYSLER'S SHARE OF THE TOTAL MARKET SWELLED 14 PERCENTAGE POINTS TO 147 OF THE USVEHICLE MARKET GM'S SHARE OF THE US MARKET DROPPED TO 336 DOWN FROM 342 JAPANESE AUTO MAKERS HELD A COMBINED 231 OF THE US VEHICLE MARKET DOWN 12 PERCENTAGE POINTS FROM A YEAR EARLIER TOTALS INCLUDE ALL VEHICLE SALES REPORTED IN THE PERIOD EXCEPT TOURISTDELIVERY SALES OF IMPORTED MODELS NOTE THERE WERE 26 SELLING DAYS IN THE MOST RECENT MONTH AND 26 A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME 9401060078 940106 WHO'S NEWS SABA PETROLEUM CO SABA PETROLEUM CO IRVINE CALIF WILLIAM L WINELAND 43YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER RESIGNED TO PURSUE OUTSIDE INTERESTS HE WAS SUCCEEDED BY ILYAS CHAUDHARY 45 THE COMPANY'S CHAIRMAN 9401060077 940106 INTERNATIONAL AUTONOMY ACCORD PUTS FURTHER STRAIN ON ARAFAT'S TIES TO JORDAN'S HUSSEIN BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL AMMAN JORDAN THE MIDEAST PEACE PROCESS HAS REVIVED AN OLD RIVALRY BETWEEN KING HUSSEIN OF JORDAN AND THE PALESTINE LIBERATION ORGANIZATION'S YASSER ARAFAT YESTERDAY AS ISRAEL AND THE PLO WERE TRYING TO AGREE ON WHEN TO MEET AGAIN TO IRON OUT THEIR DIFFERENCES OVER PALESTINIAN AUTONOMY MR ARAFAT DISPATCHED HIS FOREIGN MINISTER TO AMMAN FOR EMERGENCY TALKS WITH JORDANIAN OFFICIALS THE MEETING FOLLOWED TWO UNUSUALLY BARBED SPEECHES BY KING HUSSEIN ON SATURDAY AND TUESDAY IN WHICH THE MONARCH SAID THE PLO WOULD HAVE ONE LAST CHANCE THIS WEEK TO COORDINATE STRATEGY WITH JORDAN OR JORDAN MAY BREAK RANKS AND MAKE ITS OWN PEACE WITH ISRAEL BETWEEN THEIR TALKS YESTERDAY JORDANIAN AND PALESTINIAN OFFICIALS LED BY THE PLO'S FAROUK KADDOUMI PLAYED DOWN THE CURRENT RIFT INVOKING ARAB BROTHERHOOD AND THE SPECIAL RELATIONISHIP BETWEEN JORDANIANS AND PALESTINIANS WHO COMPRISE MORE THAN HALF OF JORDAN'S POPULATION OFFICIALS SAID THE TALKS YIELDED NOTHING DECISIVE AND WOULD RESUME TODAY BUT THE KING'S RECENT SPEECHES WERE ALL TOO CLEAR HIS DISTRUST OF YASSER ARAFAT HAS REACHED THE BREAKING POINT THE MAIN BONE OF CONTENTION IS THE PLO'S REFUSAL TO SIGN AN ECONOMICCOOPERATION AGREEMENT WITH JORDAN THAT THE TWO SIDES NEGOTIATED SEVERAL MONTHS AGO THAT AGREEMENT ESTABLISHES JORDAN'S CENTRAL BANK AS THE MAIN MONETARY AUTHORITY FOR THE WEST BANK AND GAZA STRIP UNDER AUTONOMY AND MAKES THE JORDANIAN DINAR THE TERRITORIES' PRIMARY CURRENCY MR ARAFAT HAS BALKED AT THE ACCORD PLO OFFICIALS SAY BECAUSE HE STILL HOPES ISRAEL WILL ALLOW THE PALESTINIANS TO HAVE THEIR OWN CURRENCY AND CENTRAL BANK WHICH ARE IMPORTANT TRAPPINGS MR ARAFAT BELIEVES IN THE PLO'S DRIVE FOR STATEHOOD TO JORDANIAN OFFICIALS MR ARAFAT'S REFUSAL TO SIGN THE ECONOMIC PACT UNDERSCORES THEIR BELIEF THAT THE PLO IS OBSESSED WITH INDEPENDENCE AT THE EXPENSE OF COOPERATION THE PALESTINIANS HAD SOMETHING TANGIBLE IN THE ECONOMIC AGREEMENT THAT WAS SHELVED BECAUSE THEY WANT TO RUN AFTER A SYMBOL OF SOVEREIGNTY SAID JAWAD ANANI JORDAN'S INFORMATION MINISTER AND ITS LEADING PEACE NEGOTIATOR AT A LUNCHEON WITH JOURNALISTS MONDAY AND JORDAN WILL WAIT NO LONGER SAID MR ANANI CLARIFYING KING HUSSEIN'S REMARKS SYRIA MR ANANI SAID IS EXPECTED TO SIGN A DECLARATION OF PRINCIPLES WITH ISRAEL SOON AFTER PRESIDENT HAFEZ ASSAD MEETS PRESIDENT CLINTON IN GENEVA LATER THIS MONTH THE PEACE PROCESS WILL SUDDENLY ACCELERATE AT AN ALARMING SPEED HE SAID AND JORDAN WHICH SIGNED ITS OWN AGENDA FOR PEACE WITH ISRAEL IN SEPTEMBER DOESN'T WANT TO BE LEFT BEHIND IN HIS TUESDAY SPEECH KING HUSSEIN MADE THE POINT THIS WAY WHAT IS OFFERED NOW TO THE PALESTINIANS IS EITHER THAT THEY ARE STRENGTHENED BY JOINING HANDS WITH US OR THE OTHER ALTERNATIVE THERE IS NO NEED FOR ME TO PUT IT FORTH BEHIND THIS THREAT OF ABANDONING THE PLO LURKS AN ABIDING RIVALRY BETWEEN KING HUSSEIN AND MR ARAFAT IN 1970 AFTER A FAILED COUP ATTEMPT JORDANIAN TROOPS FORCED MR ARAFAT'S GUERRILLA FORCES TO FLEE JORDAN IN A BLOODY CIVIL WAR CALLED BLACK SEPTEMBER ALTHOUGH THE TWO LEADERS APPEARED TO PATCH THINGS UP OVER THE YEARS THEIR ENMITY RESURFACED IN THE MID1980S WHEN MR ARAFAT THWARTED A PEACE PLAN HATCHED BY THE KING ISRAEL AND THE REAGAN ADMINISTRATION MR ARAFAT IS SAID TO LOATH KING HUSSEIN BELIEVING THAT HE IS TRYING TO USURP HIS LEADERSHIP OF THE PALESTINIANS KING HUSSEIN FOR HIS PART WANTS TO KEEP A STRONG HAND IN THE WEST BANK JORDANIANS SAY THE TERRITORY LEGALLY BELONGED TO JORDAN UNTIL THE KING RENOUNCED IT IN DEFERENCE TO THE PLO IN 1988 IN ADDITION TO THE ECONOMIC ADVANTAGES FOR JORDAN OF MAINTAINING CLOSE LINKS WITH THE NEWLY AUTONOMOUS TERRITORIES THE KING LIKE ISRAEL MAY HAVE REASON TO BE WARY OF THE EMERGENCE OF A STRONG INDEPENDENT PALESTINE SUCH A STATE JORDANIANS SAY COULD THREATEN MR HUSSEIN'S HASHEMITE RULE IN THE KINGDOM NEXT DOOR WHERE SO MANY OF THE PEOPLE ARE PALESTINIAN FOR THIS REASON KING HUSSEIN HASN'T APPEARED TO MAKE THINGS EASY FOR MR ARAFAT LATELY ON SEVERAL OCCASIONS THE KING HAS REASSERTED THE HASHEMITES' CLAIM TO THE HOLY SITES IN JERUSALEM A SLAP AT MR ARAFAT'S PLAN OF MAKING JERUSALEM THE CAPITAL OF AN INDEPENDENT PALESTINE THIS WEEK KING HUSSEIN ALSO RULED OUT A PALESTINIANJORDANIAN CONFEDERATION ANY TIME SOON TAKING A CLEAR SWIPE AT WHAT HAS BECOME MR ARAFAT'S ACHILLES' HEEL HIS GROWING IMAGE AS AN AUTOCRAT THE DECISION TO CONFEDERATE CAN BE TAKEN IN THE FUTURE THE KING SAID TUESDAY AFTER THE PALESTINIAN PEOPLE REGAIN THEIR LAND IN AN ATMOSPHERE OF DEMOCRACY AND FREEDOM BUT WHAT MAY HAVE BEEN MOST UNCOMFORTABLE FOR MR ARAFAT SAY JORDANIANS AND PALESTINIANS ALIKE HAS BEEN THE KING'S REPEATED THREATS TO MAKE PALESTINIANS IN JORDAN CHOOSE BETWEEN LIVING IN PALESTINE AND JORDAN THESE COMMENTS HAVE STRUCK FEAR IN THE HUNDREDS OF THOUSANDS OF PALESTINIANS WHO HAVE SETTLED AND PROSPERED IN JORDAN AND CAUSED MANY TO RUE MR ARAFAT'S INDELICATE HANDLING OF PALESTINIANJORDANIAN RELATIONS EVERY TIME THE KING SAYS WE MUST CHOOSE OUR HOMELAND BUSINESS DRIES UP FOR A WEEK COMPLAINS ONE PALESTINIAN TRADER 9401060076 940106 TECHNOLOGY SPRINT OFFERS SERVICE ACTIVATED BY VOICE OF CALLINGCARD USERS NEW YORK SPRINT CORP BEGAN MARKETING A VOICEACTIVATED LONGDISTANCE CALLINGCARD SERVICE THAT LETS A CUSTOMER TELL A PHONE TO DIAL A NUMBER RATHER THAN HAVING TO PUSH BUTTONS SPRINT WHICH PIONEERED MANY OF THE LONGDISTANCE INDUSTRY'S NEW TECHNOLOGIES INCLUDING EFFICIENT FIBEROPTIC LINES SAID ITS NEW CARD SERVICE USES CENTRAL COMPUTERS PROGRAMMED WITH SOFTWARE THAT AUTOMATICALLY RECOGNIZES A CALLER'S VOICE THE SYSTEM DOES THIS BY STORING A UNIQUE VOICE PRINT OF THE CALLER A CUSTOMER REGISTERS FOR THE SERVICE BY SPEAKING HIS CALLINGCARD NUMBER AND PASSWORD INTO THE PHONE THREE TIMES THE SYSTEM STORES THE VOICE PRINT LATER WHEN A CALL IS PLACED THE SYSTEM MATCHES THE SPOKEN COMMAND AGAINST THE PRINT BEFORE LETTING THE CALL PASS AND BILLING FOR IT AS MANY AS 10 NUMBERS CAN BE STORED IN THE SPRINT SYSTEM AND CALLED BY DIALING A TOLLFREE NUMBER AND ASKING THE PHONE TO DIAL FOR EXAMPLE MOM OR THE BARBER THERE ARE TWO LEVELS OF SECURITY THE VOICE PRINT AND THE PASSWORD SAID DAVE SCHMIEG PRESIDENT OF SPRINT'S CONSUMER SERVICES GROUP AND YOU CAN USE THE SERVICE FROM ANY TOUCHTONE OR OLDER ROTARYDIAL PHONE SPRINT IS OFFERING THE SERVICE TO CUSTOMERS OF ITS PREMIUM CALLING PLAN FOR A 5 EXTRA MONTHLY FEE THE FEE IS WAIVED IF CALLERS MAKE MORE THAN 50 A MONTH IN LONGDISTANCE CALLS SPRINT SAID NEITHER AMERICAN TELEPHONE & TELEGRAPH CO NOR MCI COMMUNICATIONS CORP OFFER VOICEACTIVATED CARDS SPRINT SAID IT SOON WILL BEGIN A NATIONAL MARKETING CAMPAIGN FOR THE SERVICE 9401060075 940106 CREDIT RATINGS BURNHAM PACIFIC PROPERTIES INC THIS SAN DIEGOBASED REAL ESTATE INVESTMENT TRUST SAID STANDARD & POOR'S CORP RAISED ITS RATING FOR THE COMPANY'S 42 MILLION OF CONVERTIBLE DEBENTURES TO TRIPLEBMINUS FROM DOUBLEBPLUS S&P SAID THE BURNHAM HAD AN IMPROVED CAPITAL STRUCTURE AND A MORE FOCUSED ACQUISITION STRATEGY THE RATING SERVICE ALSO SAID IT ASSIGNED A PRELIMINARY DOUBLEBPLUS/TRIPLEBMINUS TO THE COMPANY'S RECENTLY FILED 200 MILLION MIXED SECURITIES SHELF REGISTRATION 9401060074 940106 WHO'S NEWS CABLE SECTOR'S NCTA NAMES ANSTROM HEAD ON PERMANENT BASIS WASHINGTON THE NATIONAL CABLE TELEVISION ASSOCIATION NAMED ACTING PRESIDENT DECKER ANSTROM TO HEAD THE TRADE GROUP ON A PERMANENT BASIS MR ANSTROM A FORMER NCTA EXECUTIVE VICE PRESIDENT SUCCEEDS JAMES P MOONEY WHO STEPPED DOWN IN JULY AFTER A NINEYEAR STINT THAT ENDED IN A BRUISING BATTLE WITH CONGRESS OVER PASSAGE OF THE 1992 CABLE ACT FOLLOWING A BANNER YEAR OF UNPRECEDENTED CHANGE IN THE CABLE INDUSTRY THE 43YEAROLD MR ANSTROM FACES A BEVY OF CHALLENGES FOR STARTERS CABLE COMPANIES ARE STILL TRYING TO COMPLY WITH NEW RATE RULES SET BY THE FEDERAL COMMUNICATIONS COMMISSION BUT SMALL AND LARGE OPERATORS HAVE DIFFERENT CONCERNS NEW TECHNOLOGIES SUCH AS POCKET TELEPHONES ARE OPENING UP UNTRIED MARKETS AND RECENT MERGERS WITH TELEPHONE COMPANIES HAVE PRODUCED A NEW PARADIGM OF COMPETITIONOFTEN AMONGST NCTA MEMBERS WITH SUCH DIVERSE CONCERNS FROM AN INCREASINGLY BROAD RANGE OF INTERESTS MR ANSTROM'S BIGGEST TASK MAY BE BUILDING A CONSENSUS FROM THE CACOPHONY OF VOICES THE JOB WILL BE TO FIND THE ISSUES WE CAN AGREE ON AND GET A CONSENSUS WHERE POSSIBLE SAID MR ANSTROM HE ADDED THAT HIS FIRST TASK WILL BE TO PURSUE A STRATEGIC REVIEW OF NCTA'S ROLE WHICH IN THE PAST HAS BEEN PRIMARILY TO STAVE OFF REGULATION WE'VE BEEN IN A POLITICAL WAR FOR FIVE YEARS HERE HE SAID ADDING WE HAVE TO MAKE PEACE WITH PUBLIC OFFICIALS MR ANSTROM SAID NCTA ALSO WILL PUSH TO PASS A COMPREHENSIVE TELECOMMUNICATIONS BILL IN CONGRESS IN 1994 CULTIVATE AN IMPROVED RELATIONSHIP WITH THE FCC AND EDUCATE MORE CONSUMERS ABOUT THE VALUE OF CABLE HE'S GOT CONSIDERABLE PEACEMAKER SKILLS THAT CAN BE BROUGHT TO BEAR SAYS MR MOONEY NOT JUST IN CONGRESS BUT ALSO IN THE INDUSTRY PRIOR TO JOINING THE NCTA IN 1987 MR ANSTROM WAS PRESIDENT OF POLITICAL STRATEGIES A WASHINGTON DC CONSULTING FIRM BEFORE THAT HE WORKED IN THE OFFICE OF BUDGET AND MANAGEMENT AND IN THE WHITE HOUSE OFFICE OF PRESIDENTIAL PERSONNEL 9401060073 940106 HONDA VW SEEK TO REGAIN US GLORY ACURA PLANS A LUXURY CAR BUILT HERE BY KRYSTAL MILLER AND OSCAR SURIS STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT TWO FORMER DARLINGS OF AMERICAN CAR BUYERS HONDA'S ACURA DIVISION AND VOLKSWAGEN UNVEILED COMEBACK CONCEPTS IN PRESS BRIEFINGS AT THE AUTO SHOW HERE HONDA MOTOR CO SAID ITS ACURA LUXURY DIVISION WILL INTRODUCE A MODEL IN 1995 THAT WILL BE DESIGNED AND MANUFACTURED ENTIRELY BY THE COMPANY'S US OPERATIONS THE NEW CAR IS INTENDED TO FILL A GAP FOR ACURA ECLIPSED IN RECENT YEARS BY LEXUS AND INFINITI THE LUXURY BRANDS OF TOYOTA MOTOR CORP AND NISSAN MOTOR CORP RESPECTIVELY HONDA WILL BECOME THE FIRST JAPANESE AUTO MAKER TO BUILD A LUXURY CAR IN THE US THE MOVE CONTINUES HONDA'S STRATEGY OF INCREASING CAR PRODUCTION IN THE US AND CUTTING EXPORTS TO THE US PRICES OF EXPORTS HAVE BEEN MADE NONCOMPETITIVE BY THE STRENGTH OF THE JAPANESE YEN AGAINST THE DOLLAR ANALYSTS SAID OTHER JAPANESE AUTO MAKERS ARE LIKELY TO FOLLOW HONDA SAID THE NEW ACURA MODEL WHICH WILL COST UNDER 30000 WILL COMPETE WITH SUCH MODELS AS TOYOTA'S LEXUS ES300 IT WILL BE DESIGNED AT HONDA'S TORRANCE CALIF CENTER AND BUILT AT AN ASSEMBLY PLANT IN EAST LIBERTY OHIO THE NEW MODEL WILL GO ON SALE DURING THE AUTUMN OF 1995 HONDA SAID THE AUTO MAKER WILL BUILD BETWEEN 50000 AND 60000 OF THE VEHICLES ANNUALLY A SPOKESMAN SAID VOLKSWAGEN AG SAID IT IS LAUNCHING A PUSH TO MORE THAN DOUBLE ITS US SALES THIS YEAR ATTEMPTING TO REVERSE A 35 PLUNGE IN SALES FROM 1992 TO 1993 VW WHOSE UBIQUITIOUS BEETLE BECAME A CULTURAL ICON IN THE 1960S IS THE ONLY REMAINING HIGHVOLUME EUROPEAN AUTO MAKER STILL TRYING TO COMPETE IN THE CUTTHROAT AMERICAN MARKET VW'S SALES LAST YEAR PLUNGED TO JUST 49000 VEHICLES FROM 75000 IN 1992 THE 1993 SALES DEBACLE WAS IN PART THE RESULT OF QUALITY AND PRODUCTION GLITCHES AT VW'S MEXICAN ASSEMBLY PLANT WHICH HOBBLED THE LAUNCH OF THE AUTO MAKER'S GOLF AND JETTA COMPACTS NONETHELESS ULRICH SEIFFERT THE COMPANY'S HEAD OF WORLDWIDE RESEARCH VOWED THAT THE NO 1 EUROPEAN AUTO MAKER WON'T BE FORCED OUT OF THE MARKET AS RENAULT FIAT SPA AND PSA PEUGEOT CITROEN WERE IN RECENT YEARS WE ARE FIGHTERS WE WILL STAY IN THIS MARKET WE WILL NOT GIVE UP SAID DR SEIFFERT WHOSE DECLARATION APPEARS TO ILLUSTRATE HOW PRECARIOUS VW'S POSITION HERE HAS BECOME DR SEIFFERT SAID VW WANTS TO RECLAIM ITS IMAGE FOR SELLING HONEST RELIABLE AFFORDABLE CARS EVENTUALLY HE SAID VOLKSWAGEN SEEKS TO INCREASE ANNUAL US SALES TO ABOUT 250000 VEHICLES DURING ITS PEAK YEARS THE COMPANY WAS SELLING A HALFMILLION CARS A YEAR IN THIS MARKET SEPARATELY MAZDA MOTOR CORP SAID ITS NEW MILLENIA LUXURY CAR WILL BE PRICED BETWEEN 25995 AND 31400 ALL MILLENIA MODELS COME EQUIPPED WITH DUAL AIRBAGS ANTILOCK BRAKES AUTOMATIC TRANSMISSION AND A V6 ENGINE THE CAR WILL BE POSITIONED BETWEEN MAZDA'S 626 MODEL AND ITS FLAGSHIP 929 MODEL MAZDA EXPECTS TO SELL 24000 MILLENIAS ANNUALLY THE CAR WILL GO ON SALE IN EARLY SPRING 9401060072 940106 LEISURE & ARTS BOOKSHELF WHO LET WHOM ARM IRAQ BY WILLIAM M CARLEY NORTH KOREA MAY HAVE THE BOMB SOME LATIN AMERICAN NATIONS HAVE BEEN BUYING SUBMARINES AND MIDDLE EASTERN COUNTRIES ARE AS USUAL BUSILY ARMING TO THE TEETH WITH THIS BACKDROP IT'S USEFUL TO HAVE A BOOK WHICH SHOWS HOW ONE NATION HAS EXPLOITED A COUPLE OF THE WORLD'S BIGGEST SHOPPING MALLS FOR WEAPONS TECHNOLOGY THE NATION IN QUESTION IS IRAQ AND THE BOOK ABOUT IRAQ'S MILITARY SHOPPING SPREE DURING THE 1980S IS SPIDER'S WEB THE SECRET HISTORY OF HOW THE WHITE HOUSE LEGALLY ARMED IRAQ BANTAM 455 PAGES 2395 BY ALAN FRIEDMAN UNTIL RECENTLY WITH THE FINANCIAL TIMES I AM ALWAYS SUSPICIOUS OF A BOOK FINANCED IN PART BY ANONYMOUS DONORS AND ONE THAT CONTAINS ITS SHARE OF ANONYMOUS SOURCES AS WELL BUT WHILE ONESIDED AND AT TIMES MURKY MR FRIEDMAN DELIVERS SOME USEFUL INSIGHTS INTO THE FINANCIAL UNDERPINNINGS OF GLOBAL POLITICS FROM THE BEGINNING IT IS CLEAR THAT MR FRIEDMAN SEES ANYONE WHO HELPED ISRAEL'S ARCHENEMY IRAQ AS A FOOL OR A KNAVE SOMETIMES BOTH AS IN THE CASE OF FORMER PRESIDENT BUSH AND HIS SECRETARY OF STATE JAMES BAKER AS WELL AS FORMER PRIME MINISTER MARGARET THATCHER AFTER THE IRANIRAQ WAR THE BUSHBAKER TEAM DECIDED TO FOSTER TRADE WITH IRAQ THE US WAS THEN ABLE TO PURCHASE IRAQI OIL AND SELL THEM GOODS TO REBUILD THEIR SHATTERED ECONOMY AND THE TRADE IT WAS HOPED JUST MIGHT MODERATE SADDAM'S BEHAVIOR BRITAIN TOOK MUCH THE SAME TACK AS THE US IT TURNED OUT THAT SOME OF THE GOODS SOLD TO IRAQ SUCH AS SOPHISTICATED MACHINE TOOLS COULD ALSO BE USED FOR A NUCLEAR BOMB PROGRAM SPIDER'S WEB WRITTEN IN A HECTORING ACCUSATORIAL TONE SUGGESTS THAT MESSRS BUSH AND BAKER AND MRS THATCHER DELIBERATELY CIRCUMVENTED US AND UK EXPORT CONTROLS IN ORDER TO ARM SADDAM BUT IT NEVER PROVES THIS POINT WHEN THE US POLICY OF TRADING WITH IRAQ WAS HATCHED IN OCTOBER 1989 NO ONE DREAMED THAT SADDAM WOULD ATTACK KUWAIT NEARLY A YEAR LATER CAREFULLY READ HOWEVER THE BOOK SHOWS HOW EVEN THE BEST INTENTIONED OF FOREIGN POLICIES CAN GO WRONG TUCKED INTO THE BOOK'S APPENDIX ARE DOZENS OF PREVIOUSLY SECRET US AND BRITISH GOVERNMENT DOCUMENTS THAT SHOW SOME OF THE DIFFICULTIES GOVERNMENTS GO THROUGH IN TRYING TO ADMINISTER THEIR POLICIES ONE GOOD EXAMPLE INVOLVES MATRIX CHURCHILL A COVENTRYBASED BRITISH FIRM SECRETLY OWNED BY IRAQI INTERESTS IN 1989 THE COMPANY HAD APPLIED FOR BRITISH GOVERNMENT PERMISSION TO EXPORT LATHES TO IRAQ THIS PRESENTED A PROBLEM AS A BRITISH GOVERNMENT INTERNAL MEMO POINTED OUTTHERE IS GOOD REASON TO BE SKEPTICAL ABOUT ALLOWING ANY EXPORT WHICH MIGHT HELP IN THE ACHIEVEMENT OF IRAQ'S NUCLEAR OBJECTIVES THE MEMO STATED HOWEVER OFFICIALS FROM INTERESTED DEPARTMENTS HAVE AGREED THAT THERE IS NO REASON TO BELIEVE THAT MATRIX CHURCHILL LATHE EQUIPMENT IS OF SPECIFIC INTEREST TO THE IRAQI NUCLEAR PROGRAMME WE KNOW OF COURSE THAT MACHINE TOOLS CAPABLE OF CONTOURING IN TWO AXES ARE ESSENTIAL FOR THE PRODUCTION OF NUCLEAR WEAPONS BUT THEY ALSO HAVE MANY OTHER LEGITIMATE INDUSTRIAL USES THE MEMO WENT ON TO POINT OUT THAT THERE WERE NO INTERNATIONAL AGREEMENTS PREVENTING EXPORTS OF SUCH DUALUSE EQUIPMENT SO IF BRITAIN DIDN'T SELL THE LATHES TO IRAQ SOME OTHER COUNTRY WOULD IN MATRIX CHURCHILL'S CASE THERE WAS ANOTHER CONSIDERATION UNKNOWN TO THE IRAQIS SOME OF THE COMPANY'S BRITISH EXECUTIVES WERE ACTING AS SPIES FOR BRITISH INTELLIGENCE THUS PROVIDING BRITAIN WITH AN INVALUABLE WINDOW INTO THE IRAQI PROCUREMENT NETWORK DENYING THE EXPORT MIGHT HAVE CLOSED IT THE POLICY AS WE ALL KNOW NOW BACKFIRED WHEN UNITED NATIONS INSPECTORS CHECKED UP ON SADDAM'S FACTORIES AFTER THE WAR THEY FOUND A NUCLEAR BOMB PROJECT FAR MORE ADVANCED THAN ANYONE OUTSIDE IRAQ HAD IMAGINED THE UN INSPECTORS ALSO FOUND MATRIX CHURCHILL MACHINES IN ONE OF THE NUCLEAR PROJECT PLANTS IT WAS WITHOUT DOUBT THE BEST INDUSTRIALTOOLING FACILITY WE HAD SEEN DAVID KAY FORMER NUCLEAR INSPECTOR FOR THE UN SAYS IN THE BOOK MR KAY ADDS WE JOKED ABOUT ONE MEMBER OF THE INSPECTION TEAM FROM BRITISH INTELLIGENCE WE KNEW WHY HE HAD SUCH GOOD INFORMATION ON THE NUMBER OF MATRIX CHURCHILL MACHINES THAT WOULD BE THERE ASTONISHINGLY THE SAME BRITISH GOVERNMENT THEN PROSECUTED IN 1992 SOME MATRIX CHURCHILL OFFICIALS FOR VIOLATING EXPORT LAWS A PROSECUTION THAT WAS DROPPED IN MIDTRIAL THE BOOK ALSO HAS CHAPTERS ON THE ATLANTA BRANCH OF BANCA NAZIONALE DEL LAVORO AND HOW IT FINANCED ARMS EXPORTS TO IRAQ FROM THE US AND PROVIDED LETTERS OF CREDIT FOR SOME OF MATRIX CHURCHILL'S EXPORTS FROM BRITAIN AND MR FRIEDMAN WITH CONVINCING DETAIL SHOWS HOW MR BAKER LOBBIED A US GOVERNMENT AGENCY TO GUARANTEE SOME OF BNL'S LOANS TO IRAQ THE JUSTICE DEPARTMENT'S INVESTIGATION EVENTUALLY LED TO THE INDICTMENT OF SEVERAL ATLANTA BRANCH OFFICIALS BUT THE BOOK FAILS TO ANSWER ONE OF THE MOST TANTALIZING QUESTIONS OF ALL IF THE BRITISH GOVERNMENT WAS USING MATRIX CHURCHILL FOR INTELLIGENCE PURPOSES AS IT SURELY WAS WHY ON EARTH DID THE CROWN EVER PROSECUTE COMPANY OFFICIALS WHO HAD BEEN COOPERATING WITH THAT INTELLIGENCE OPERATION MR CARLEY IS AN INVESTIGATIVE REPORTER FOR THE JOURNAL 9401060071 940106 ECONOMY AMA CONTRIBUTIONS SEEM TO CONTRADICT ITS STANCE ON 3 ISSUES POLITICALCAMPAIGN DONATIONS TO MEMBERS OF CONGRESS ARE ANALYZED IN ARTICLE BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL SOME OF THE LARGEST POLITICALCAMPAIGN CONTRIBUTIONS BY THE AMERICAN MEDICAL ASSOCIATION HAVE GONE TO CONSERVATIVE MEMBERS OF CONGRESS WHO OPPOSED THE AMA ON THREE PUBLICHEALTH ISSUES THAT'S THE CONCLUSION OF A NEW STUDY ANALYZING CONGRESSIONAL VOTING RECORDS AND AMA CAMPAIGN FINANCING FROM 1989 TO 1992 OVER THAT PERIOD THE AMA'S POLITICAL ARM THE AMERICAN MEDICAL POLITICAL ACTION COMMITTEE CONTRIBUTED 53 MILLION TO CANDIDATES FOR CONGRESS THAT RANKED IT AMONG THE TOP HEALTHCARE LOBBYING GROUPS THE STUDY PUTS THE AMA'S LOBBYING PRIORITIES UNDER THE SPOTLIGHT AT AN AWKWARD TIME FOR THE 290000MEMBER PHYSICIANS' ORGANIZATION THE AMA LATELY HAS BEEN URGING CONGRESS TO TAKE A MORE GRADUAL APPROACH TO HEALTHCARE REFORM THAN CALLED FOR BY SOME PROPOSALS AT THE SAME TIME THE AMA IS CONTINUING LONGTIME CAMPAIGNS ON HEALTH ISSUES SUCH AS SMOKING THE AUTHORS OF THE STUDY HARVARD MEDICAL SCHOOL STUDENT JOSHUA SHARFSTEIN AND HIS FATHER BALTIMORE PSYCHIATRIST STEVEN SHARFSTEIN CONTEND THAT AMA LOBBYISTS MAY BE LETTING ECONOMIC INTERESTS SUPERSEDE QUESTIONS OF PUBLIC HEALTH THEIR REPORT IS PUBLISHED IN THE LATEST ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE AMA OFFICIALS DISPUTED THE SHARFSTEINS' INTERPRETATION A SUBJECT OF THIS COMPLEXITY DOESN'T EASILY LEND ITSELF TO A RELATIVELY SIMPLISTIC APPRAISAL SAID JAMES TODD THE AMA'S EXECUTIVE VICE PRESIDENT HE SAID THE SHARFSTEINS' STUDY LOOKED AT MUCH TOO NARROW A RANGE OF HEALTH ISSUES TO BE REPRESENTATIVE OF THE AMA'S OVERALL LOBBYING THE SHARFSTEINS' STUDY FOCUSES ON CONGRESSIONAL VOTING ON THREE ISSUES PROMOTING TOBACCO EXPORTS REQUIRING A WAITING PERIOD FOR HANDGUN PURCHASES AND RESTRICTING WHAT PHYSICIANS IN FEDERALLY FUNDED CLINICS CAN TELL PATIENTS ABOUT ABORTIONS THE AMA REPEATEDLY HAS SPOKEN OUT ON ALL THREE ISSUES OPPOSING TOBACCOEXPORT AID FAVORING FIREARMS WAITING PERIODS AND OPPOSING LIMITS ON DOCTORS' RIGHTS TO COUNSEL PATIENTS DESPITE THE AMA'S PUBLIC STANDS THE SHARFSTEINS FOUND THAT MEMBERS OF CONGRESS WHO TOOK THE OPPOSITE POSITIONS GOT BIGGER CAMPAIGN CONTRIBUTIONS FROM THE AMA'S POLITICAL ARM REPRESENTATIVES WHO VOTED WITH THE AMA ON THE TOBACCO BILL FOR EXAMPLE GOT AN AVERAGE OF 9842 MEMBERS WHO VOTED AGAINST THE AMA POSITION GOT AN AVERAGE OF 11549 SUCH VARIATIONS IN CONTRIBUTIONS BELIE THE AMA POSITIONS ON SOME IMPORTANT PUBLIC HEALTH ISSUES THE SHARFSTEINS WROTE MEANWHILE THE AMA'S POLITICAL ARM CONTRIBUTED SIGNIFICANTLY MORE TO REPRESENTATIVES WITH HIGHER VOTE RATINGS FROM THE AMERICAN CONSERVATIVE UNION THE STUDY FOUND PERHAPS THE MORE CONSERVATIVE REPRESENTATIVES SUPPORTED THE AMA POSITIONS ON ECONOMIC ISSUES IMPORTANT TO PHYSICIANS THE SHARFSTEINS WROTE JOSHUA SHARFSTEIN SAID THE ARTICLE ORGINALLY WAS SUBMITTED TO THE AMA'S OWN LEAD PUBLICATION THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION BUT WAS REJECTED MR SHARFSTEIN SAID HE WASN'T ENTIRELY SURE WHY THE AMA JOURNAL CHOSE NOT TO TAKE THE ARTICLE THE NEW ENGLAND JOURNAL OF MEDICINE IS PUBLISHED BY THE MASSACHUSETTS MEDICAL SOCIETY WHICH IS A MEMBER OF THE AMA BUT THE MASSACHUSETTS SOCIETY HAS LONG GIVEN THE EDITOR OF THE NEW ENGLAND JOURNAL CONSIDERABLE INDEPENDENCE AND THE JOURNAL HAS FREQUENTLY PUBLISHED ARTICLES AND EDITORIALS THAT ARE AT VARIANCE WITH AMA POLICIES AND STANCES 9401060070 940106 ECONOMY CLINTON SET TO CUT CHINA TEXTILE QUOTAS LIFT BAN ON SALE OF SATELLITES TO BEIJING BY BOB DAVIS AND ROBERT S GREENBERGER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS SET TO SLASH CHINA'S TEXTILE QUOTAS BY AS MUCH AS ONETHIRD WHILE ALSO LIFTING A BAN ON THE SALE OF TWO COMMUNICATIONS SATELLITES TO BEIJING OFFICIALS SAID THEY WANT BEIJING TO GREATLY REDUCE THE ILLICIT EXPORT OF GARMENTS THROUGH OTHER COUNTRIES IN AN EFFORT TO EVADE US QUOTA LIMITS THE US CUSTOMS SERVICE ESTIMATES THAT THOSE ILLEGAL EXPORTS AMOUNT TO 2 BILLION ON TOP OF ITS LEGAL QUOTAS WHICH TOTALED ABOUT 45 BILLION LAST YEAR THE ADMINISTRATION IS TO LIFT A BAN ON THE SALE OF TWO SATELLITES BUILT BY MARTIN MARIETTA CORP IN EXCHANGE FOR BEIJING'S AGREEMENT TO BEGIN REGULAR DISCUSSIONS WITH THE US ON WEAPONSPROLIFERATION ISSUES US OFFICIALS SAID BOTH ANNOUNCEMENTS COULD COME AS EARLY AS TODAY THE TWIN MOVES WHICH OFFICIALS SAID AREN'T LINKED COME AS THE ADMINISTRATION IS TRYING TO SORT OUT ITS POLICY TOWARD CHINA CLINTON TRADE OFFICIALS WANT TO SEND A BROAD MESSAGE TO CHINA THAT THE US IS READY TO CRACK DOWN IF CHINA FAILS TO MEET US EXPECTATIONS BUT THAT IT'S ALSO READY TO REWARD CHINA IF IT MAKES DEMONSTRABLE PROGRESS THIS GOODCOP BADCOP STYLE OF TRADE POLICY MARKED THE ADMINISTRATION'S EARLY TRADE RELATIONS WITH EUROPE AND OFTEN LEFT THE EUROPEANS MORE CONFUSED THAN CONVINCED WITH CHINA THE ADMINISTRATION ALSO HAS BEEN SCURRYING TO FIND WAYS TO DEMONSTRATE TO CHINA AND TO CONGRESS THAT IT IS SERIOUS IN DEMANDING IMPROVEMENTS IN HUMAN RIGHTS PRESIDENT CLINTON MUST DECIDE BY JUNE 4 WHETHER CHINA HAS MADE SUFFICIENT IMPROVEMENTS TO JUSTIFY CONTINUING TO ASSESS THE LOWEST POSSIBLE TARIFF RATES ON CHINESE EXPORTS SECRETARY OF STATE WARREN CHRISTOPHER MIGHT MEET CHINA'S FOREIGN MINISTER IN EUROPE THIS MONTH FOR DISCUSSIONS OF THE BILATERAL RELATIONSHIP BOWMAN CUTTER A SENIOR ECONOMIC ADVISER TO PRESIDENT CLINTON TOLD FOREIGN JOURNALISTS LAST MONTH THAT CHINA WOULD BE THE FOCAL POINT OF THE ADMINISTRATION'S TRADE POLICY THIS YEAR IT IS IN THE BALANCE WHETHER OR NOT CHINA WILL BE A MERCANTILIST ECONOMY OR AN OPEN ECONOMY HE SAID THE CHINA QUESTION HAS BEEN THE SUBJECT OF INTERAGENCY MEETINGS THIS WEEK WHICH GAINED URGENCY WHEN CHINA REFUSED TO CONTINUE TEXTILE NEGOTIATIONS IN WASHINGTON WITHIN THE ADMINISTRATION OFFICIALS AT THE STATE DEPARTMENT AND ELSEWHERE WORRY THAT CUTTING CHINA'S QUOTA COULD LEAD TO CHINESE RETALIATION AGAINST US MANUFACTURERS OF AIRCRAFT AND TELECOMMUNICATIONS EQUIPMENT BUT IN THE END THE ADMINISTRATION DECIDED IT WAS MORE IMPORTANT TO FOLLOW THROUGH ON PREVIOUS THREATS THAT IF CHINA DIDN'T REACH AN AGREEMENT THE QUOTAS WOULD BE CUT THE US WANTS CHINA TO SIGN A TEXTILE AGREEMENT THAT WOULD ALLOW THE US TO DEDUCT FROM CHINA'S QUOTA THREE TIMES THE VOLUME OF GOODS SHIPPED IMPROPERLY THROUGH OTHER COUNTRIES OVER THE PAST SIX MONTHS SOUTH KOREA JAMAICA THE CZECH REPUBLIC AND A DOZEN SMALL COUNTRIES HAVE SIGNED SUCH AGREEMENTS IF CHINA AGREES QUOTA REDUCTIONS WOULD BE RESCINDED FOR THEIR PART CHINESE OFFICIALS SAID THEY ARE DOING THEIR BEST TO COMBAT ILLICIT SHIPMENTS AND COMPLAIN THEY ARE BEING UNFAIRLY TARGETED BY WASHINGTON TEXTILE AGREEMENTS ALSO HAVE LAPSED WITH INDIA PAKISTAN AND THAILAND BUT THE US IS LIMITING ITS RESPONSE SO FAR TO CHINA BK ZUTSHI INDIA'S DELEGATE TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE SAID INDIA WANTS TO WRAP UP TEXTILE NEGOTIATIONS WITH THE US BY FEBRUARY IN CHOOSING QUOTA REDUCTIONS THE US SIDESTEPPED POSSIBLE HARSHER ACTIONS SUCH AS PLACING PROHIBITIVELY HIGH TARIFFS ON ALL CHINESE TEXTILE EXPORTS THAT WOULD HAVE IMMEDIATELY CUT INTO CHINA'S TRADE QUOTA REDUCTIONS MAY PROMPT US IMPORTERS TO LOOK ELSEWHERE FOR TEXTILE SUPPLIERS BUT IN THE MAIN THE REDUCTIONS SHOULDN'T HARM CHINA MUCH UNTIL LATE SUMMER US TRADE OFFICIALS CALCULATE WHEN SHIPMENTS FOR THE CHRISTMAS SEASON PICK UP BY THAT TIME THE ADMINISTRATION HOPES BEIJING WILL HAVE AGREED TO THE CHANGES THE US IS SEEKING CONCERNING THE SATELLITE DEAL THE WHITE HOUSE HAS BEEN UNDER PRESSURE FROM US BUSINESSES TO LIFT THE SANCTIONS SINCE THEY WERE IMPOSED ON BEIJING LAST SUMMER FOR THE SALE OF M11 MISSILE TECHNOLOGY TO PAKISTAN A US OFFICIAL SAID THAT UNDER THE AGREEMENT TO HOLD NEGOTIATIONS ON PROLIFERATION QUESTIONS LICENSES WOULD BE APPROVED FOR THE SALE OF ECHOSTAR A 150 MILLION DIRECT BROADCAST SATELLITE AND ASIASAT II VALUED AT 55 MILLION LATER ON THE OFFICIAL SAID A LICENSE FOR A THIRD SATELLITE DEAL MIGHT BE APPROVED INVOLVING GENERAL MOTORS CORP'S HUGHES AIRCRAFT UNIT THE COMPANY HAS CONTRACTS WITH CHINA TO LAUNCH TWO COMMUNICATIONS SATELLITES ONE IS A JOINT VENTURE WITH CHINA THE OTHER SATELLITE IS OWNED BY AN AUSTRALIAN COMPANY THE SATELLITES VALUED AT ABOUT 180 MILLION WOULD BE LAUNCHED BY THE CHINA GREAT WALL INDUSTRIAL CORP HUGHES ARGUES THAT THE BAN ON SATELLITE SALES COULD COST IT AS MUCH AS 1 BILLION IN FUTURE BUSINESS THE SANCTIONS WERE ORIGINALLY ASSESSED BECAUSE THE US SAID THE CHINESE MISSILE TECHNOLOGY SALE VIOLATED GUIDELINES SET BY THE MISSILE TECHNOLOGY CONTROL REGIME BEIJING HAD PROMISED THE BUSH ADMINISTRATION IN 1992 THAT IT WOULD ABIDE BY THE ACCORD IN WHICH SUPPLIER NATIONS AGREE TO PROHIBIT THE SALE OF CERTAIN TECHNOLOGIES TO OTHER COUNTRIES 9401060069 940106 LEISURE & ARTS A FEMINIST THEORY OF GREECE'S PARTHENON FRIEZE BY STEVE COATES NEW YORK A NEW YORK UNIVERSITY PROFESSOR HAS STARTLED AND DELIGHTED THE WORLD OF CLASSICAL ARCHAEOLOGY WITH A RADICAL REINTERPRETATION OF THE PARTHENON FRIEZE THIS ICON OF WESTERN CULTURE NOW IN THE COLLECTION OF THE BRITISH MUSEUM IN LONDON IS ONE OF THE MOST IMPORTANT AND ENIGMATIC SCULPTURES TO SURVIVE FROM ANCIENT GREECE IN HER NEW THEORY JOAN BRETON CONNELLY MOUNTS THE MOST SERIOUS CHALLENGE TO THE TRADITIONAL CONCEPTION OF THE FRIEZE IN OVER 200 YEARS SHE RAISES QUESTIONS ABOUT ATHENS'S ESTABLISHED REPUTATION AS A MISOGYNISTIC SOCIETY BY ARGUING THAT THE FRIEZE DEPICTS A MYTH IN WHICH WOMEN ARE VENERATED AS SOCIAL LEADERS AND MARTYRS MS CONNELLY ARGUES THAT THE FRIEZE AND IN SOME WAYS THE PARTHENON AS A WHOLE CELEBRATES THREE LEGENDARY PRINCESSES WHO AGREE TO DIE IN ORDER TO SAVE ATHENS AND A QUEEN WHO WILLINGLY GIVES UP HER FAMILY SO THE CITY MIGHT SURVIVE IF SHE IS EVEN PARTLY RIGHT IT IS A REVOLUTION FOR THE INTERPRETATION OF THE FRIEZE SAYS WERNER FUCHS AN AUTHORITY ON GREEK SCULPTURE WHO HAS WORKED AT THE UNIVERSITIES OF TUBINGEN AND MUNSTER IN GERMANY AND NOW LIVES IN OXFORD ENGLAND THE 528FOOT FRIEZE ONCE RAN COMPLETELY AROUND THE OUTSIDE WALL OF THE PARTHENON THE TEMPLE OF ATHENA THAT STILL STANDS ON THE ACROPOLIS HILL OVERLOOKING ATHENS A MONUMENTAL BAND OF CARVED HUMAN AND ANIMAL FIGURES IT RUNS UNDER THE ROOF OF THE MARBLE BUILDING'S OUTER COLONNADE IT CLEARLY REPRESENTS A RELIGIOUS PROCESSION OF SOME KIND WITH FIGURES LEADING ANIMALS TO BE SLAUGHTERED SACRIFICIAL ATTENDANTS AND MUSICIANS FOLLOWED BY CHARIOTS AND A CAVALCADE OF NEARLY 200 HORSEMEN THE PROCESSION CONVERGES ON A GROUP OF FIVE FIGURES THAT ONCE OCCUPIED A PROMINENT POSITION ABOVE THE MAIN DOOR OF THE TEMPLE A MAN DRESSED AS A PRIEST AND A YOUNG CHILD HANDLING A LARGE PIECE OF FABRIC FOLDED LIKE A SHEET A STATELY ADULT WOMAN BESIDE THEM AND TWO YOUNGER WOMEN CARRYING OBJECTS OF SOME SORT ON THEIR HEADS GODS ARE IN ATTENDANCE BUT TURN THEIR BACKS ON THE CENTRAL SCENE TAKING A CUE FROM THE FOLDED CLOTH JAMES STUART AND NICHOLAS REVETT ENGLISHMEN TRAVELING IN GREECE OVER TWO CENTURIES AGO SUGGESTED THAT THE FRIEZE MIGHT REPRESENT THE PANATHENAIC PROCESSION PART OF THE ATHENIANS' ANNUAL BIRTHDAY CELEBRATION FOR THEIR PATRON GODDESS ATHENA THE FABRIC THEY REASONED WAS THE PEPLOS A DRESS WHICH THE CITIZENS WOVE ANEW EACH YEAR AND PRESENTED TO THE GODDESS IN THE GREAT PROCESSION THE FIVE CENTRAL FIGURES WERE ALL TO BE CONNECTED IN SOME WAY WITH THE CLIMAX OF THE RITUAL STUART AND REVETT PUBLISHED THEIR HYPOTHESIS IN 1787 AND DESPITE SOME ADMITTED DIFFICULTIES IT HAS REMAINED THE BASIS FOR SERIOUS INTERPRETATIONS OF THE PARTHENON FRIEZE EVER SINCE BUT IF THE TWO AMATEUR SCHOLARS WERE CORRECT THEN THE FRIEZE IS UNIQUE AMONG KNOWN TEMPLE DECORATIONS FROM ANCIENT GREECE IN SHOWING A SCENE FROM CONTEMPORARY LIFE ON GREEK TEMPLES MYTHOLOGICAL SCENES ARE THE NORM IN HER NEW THEORY MS CONNELLY NEATLY SOLVES THIS PROBLEM BY CONNECTING THE FRIEZE WITH A MYTH SHE BELIEVES IS THE BASIS FOR THE SCENE IT DEPICTS SHE FOUND CLUES FOR HER INTERPRETATION IN A THIRDCENTURY BC PAPYRUS USED TO WRAP A MUMMY NOW IN THE LOUVRE FIRST PUBLISHED IN 1967 THE PAPYRUS PRESERVES ABOUT 150 PREVIOUSLY UNKNOWN LINES OF THE ERECHTHEUS A LOST TRAGEDY OF EURIPIDES DATED TO ABOUT 423 BC AROUND THE TIME THAT THE PARTHENON FRIEZE WAS CREATED WHILE THE STORY WAS FAMILIAR FROM OTHER SOURCES EVEN BEFORE THE DISCOVERY OF THE FRAGMENT THE NEW LINES BY EURIPIDES CONTAINED NUMEROUS REFERENCES TO GREEK CULT THAT MS CONNELLY SAYS ALLOWED HER TO CONNECT THE MYTH WITH THE FRIEZE IN THE PLAY ERECHTHEUS THE KING OF ATHENS FACES AN INVASION BY A THRACIAN ARMY HE SEEKS ADVICE AT DELPHI AND FOR ONCE THE ORACLE ANSWERS UNEQUIVOCALLY IN ORDER TO DEFEAT THE INVADERS ERECHTHEUS MUST SACRIFICE ONE OF HIS THREE DAUGHTERS BUT THE GIRLS HAD MADE A VOW THAT THE DEATH OF ONE WOULD MEAN THE DEATH OF THEM ALL HEARING THE GRIM NEWS PRAXITHEA THE QUEEN DELIVERS A STIRRING AND PATRIOTIC SPEECH THE RUIN OF ONE PERSON'S HOUSE IS OF LESS CONSEQUENCE AND BRINGS LESS GRIEF THAN THAT OF THE WHOLE CITY IF THERE WERE A HARVEST OF SONS IN OUR HOUSE RATHER THAN DAUGHTERS AND A HOSTILE FLAME CAME TO THE CITY WOULD I NOT HAVE SENT MY SONS INTO BATTLE FEARING FOR THEIR DEATH I HATE WOMEN WHO IN PREFERENCE FOR THE COMMON GOOD CHOOSE FOR THEIR OWN CHILDREN TO LIVE THE GIRLS AGREE TO BE SLAUGHTERED AND THE THRACIANS ARE DEFEATED THOUGH ERECHTHEUS FALLS IN THE FIGHTING ACCORDING TO THE CONNELLY THEORY THE FIVE FIGURES ABOVE THE DOOR OF THE PARTHENON REPRESENT THE ROYAL COUPLE PREPARING TO SACRIFICE THEIR DAUGHTERS BEFORE THE BATTLE THE FOLDED CLOTH IS THE DEATH SHROUD OF THE YOUNGEST DAUGHTER THE FIRST TO BE SACRIFICED THE ADULT FEMALE PRAXITHEA ATTENDS HER OTHER DAUGHTERS WHO WAIT THEIR TURN CARRYING THEIR OWN SHROUDS AS BUNDLES ON THEIR HEADS ALL MY LIFE I HAVE BEEN PUZZLED ABOUT WHY THE GODS ARE TURNED AROUND FROM THE CENTRAL SCENE SAYS MR FUCHS NOW FOR THE FIRST TIME THERE IS A POSSIBILITY TO KNOW WHY IN GREEK MYTHOLOGY HE SAYS GODS SOMETIMES TURN AWAY FROM THE DEATH THROES OF MORTALS TO AVOID POLLUTING THEIR DIVINE NATURA THERE ARE MANY SHADES OF OPINION ABOUT MS CONNELLY'S AS YET UNPUBLISHED THEORY BUT IT IS THE TALK OF ARCHAEOLOGICAL CIRCLES HER LECTURES ON THE SUBJECT HAVE BEEN GREETED ENTHUSIASTICALLY BY UNIVERSITY AUDIENCES ON BOTH SIDES OF THE ATLANTIC I'M INCLINED TO BELIEVE IT MYSELF SAYS MARTIN ROBERTSON THE FORMER LINCOLN PROFESSOR OF CLASSICAL ARCHAEOLOGY AT OXFORD UNIVERSITY BUT IT'S A BIT PREMATURE TO SAY WHAT THE FINAL REACTION WILL BE THERE HAS BEEN A STRONG RESPONSE SAYS BRUNILDE RIDGWAY RHYS CARPENTER PROFESSOR OF ARCHAEOLOGY AT BRYN MAWR COLLEGE NOT MANY PEOPLE BELIEVE IT SHE MAINTAINS BUT THEY LIKE IT VERY MUCH THE NEW POINT OF VIEW IS VERY STIMULATING CERTAINLY ONE REASON THE VIEW IS SO STIMULATING IS THE PROMINENCE THAT THE MYTH OF ERECHTHEUS'S DAUGHTERS ACCORDS THE HEROIC CAPACITY OF WOMEN EVEN THOUGH VIRGIN SACRIFICE MAY SEEM A PARADOXICAL WAY TO INTRODUCE THAT THEME AS MS CONNELLY PUTS IT IF THE CENTRAL MONUMENT OF WESTERN CULTURE CAN BE SEEN IN PART AS A MONUMENT TO THE HEROISM OF THE THREE MAIDENS WHO AS WILLING VICTIMS AND WITH THE ENCOURAGEMENT OF THEIR MOTHER GAVE THEIR LIVES TO SAVE THE POLIS SO MUCH FOR MISOGYNY IN GREEK MYTH AND WELCOME TO AN EXPANDED VIEW OF WOMEN AS HEROES IN GREEK MYTH AND CULT AS TRULY CELEBRATED IN THE PARTHENON THE GREAT TEMPLE SHE SAYS MIGHT HAVE BEEN THOUGHT TO LIE ABOVE THE TOMB OF THE THREE SLAIN MAIDENS THAT MONUMENTAL TRIBUTE WOULD STAND IN SHARP CONTRAST WITH THE DISMISSIVE ATTITUDE TOWARD WOMEN EXPRESSED BY THE FIFTH CENTURY BC ATHENIAN STATESMAN PERICLES IN A NOTORIOUS AND MUCHQUOTED LINE FROM HIS FUNERAL ORATION THE GLORY OF A WOMAN IS NOT TO FALL BENEATH A WOMAN'S NATURE AND NOT TO BE TALKED OF AMONG MEN WHETHER IN PRAISE OR IN CRITICISM SO FAR EVELYN HARRISON OF NEW YORK UNIVERSITY'S INSTITUTE OF FINE ARTS SEEMS TO BE THE MOST VIGOROUS CRITIC OF PROF CONNELLY'S PROPOSITION SHE DEFENDED A CONSERVATIVE READING OF THE FRIEZE IN A RECENT TALK AT PRINCETON UNIVERSITY I WASN'T ABLE TO BELIEVE ANY OF THIS FROM THE BEGINNING SAYS PROF HARRISON WHO AMONG OTHER OBJECTIONS BELIEVES THAT ERECHTHEUS IS REPRESENTED IN ANOTHER PART OF THE FRIEZE AND THAT THE CHILD IN THE CENTRAL SCENE IS ACTUALLY A BOY SEVERAL SCHOLARS NOTE THAT THERE IS OFTEN A RELUCTANCE TO TAKE STRONG SIDES ON A CONTROVERSIAL IDEA BEFORE IT IS ACTUALLY PUBLISHED ONE HAS TO WAIT UNTIL SHE GETS IT DOWN IN WRITING SAYS OXFORD'S CURRENT LINCOLN PROFESSOR SIR JOHN BOARDMAN WHO ADDS I'M SURE SHE ISN'T RIGHT BUT WHAT SHE SAYS HAS A LOT OF VALUE IN RELATION TO THE FRIEZE THIS PROBLEM MAY NOT EVER BE CONCLUSIVELY SOLVED BUT THE DISCUSSION WILL CONTINUE SAYS HOMER THOMPSON PROFESSOR OF HISTORY AT THE INSTITUTE FOR ADVANCED STUDY AT PRINCETON IT IS A VERY GREAT THEME IN THE HISTORY OF ATHENS IN HER PRIME AND IN HER GLORY 9401060068 940106 MARKETING & MEDIA MEMPHIS FLIGHTS PUT A TWIST ON ROCKING 'ROUND THE CLOCK DISCOUNT FARES TO GRACELAND IN A SINGLE DAY ARE PART OF LATEST MARKETING FAD BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL FEW TRAVELERS ENJOY SQUEEZING ROUNDTRIP FLIGHTS INTO A SINGLE DAY BUT A NEW WAVE OF SPECIAL DISCOUNTS IS LURING FLYERS ON THESE HURRIED EXCURSIONS QUICKHIT FARE SALES THAT REQUIRE PASSENGERS TO DEPART AND RETURN ON THE SAME DAY ARE THE LATEST AIRLINE MARKETING FAD MAKING THEIR DEBUT WITH THE RECENT HOLIDAY SEASON IN THE LATEST EXAMPLE NORTHWEST AIRLINES ANNOUNCED YESTERDAY THAT IT WAS OFFERING DISCOUNT ELVIS FARES FOR TRAVEL TO AND FROM MEMPHIS ON THE LATE ROCK LEGEND'S BIRTHDAY THIS SATURDAY ONE EXAMPLE A ROUNDTRIP ELVIS FARE FROM ATLANTA IS 79 COMPARED WITH THE NORMAL WALKUP PRICE OF 874 MEMPHIS OF COURSE IS HOME TO ELVIS PRESLEY'S GRACELAND MANSION AND IS ALSO THE SITE OF A STRUGGLING NORTHWEST HUB ELVIS'S BIRTHDAY IS A ONEDAY EVENT AND PEOPLE MAKE PILGRIMAGES TO GRACELAND SAID A SPOKESMAN FOR NORTHWEST A UNIT OF WINGS HOLDINGS INC NOT TO BE OUTDONE AMR CORP'S AMERICAN AIRLINES RESPONDED BY OFFERING 79 ROUNDTRIP FARES FROM ITS THREE HUB CITIES DALLAS/FORT WORTH CHICAGO AND NASHVILLE AND THE AIRLINE WILL ALSO GIVE OUT 20 REFUNDS TO PASSENGERS DRESSED IN ELVIS GARB SIDEBURNS AREN'T NECESSARY SUCH SPECIALEVENT SALES ENABLE CARRIERS TO BUILD UP GOODWILL WITH GRATEFUL CUSTOMERS IN THIS CASE MR PRESLEY'S DETERMINED FOLLOWERS BUT THE DISCOUNT IS SO NARROW IN THIS CASE APPLYING TO ONE CITY ON ONE DAY THAT IT SHOULDN'T DILUTE REVENUE BY DISPLACING HIGHERFARE PASSENGERS THE SALES ARE ALSO ONLY OFFERED ON LIGHT TRAVEL DAYS WHEN MOST CARRIERS WOULD OTHERWISE BE FLYING HALFEMPTY PLANES AN INDEPENDENCE DAY FARE SALE IS LIKELY THIS YEAR FOR INSTANCE AIRLINE OFFICIALS SAY ONEDAY DISCOUNTS APPARENTLY WORKED FOR NORTHWEST WHEN IT SOLD CUTRATE TICKETS TO MINNEAPOLIS ON THE LAST SIX SATURDAYS BEFORE CHRISTMAS THE IDEA WAS TO DRAW HOLIDAY SHOPPERS FOR DAYLONG BUYING BINGES AT THE MALL OF AMERICA THE NATION'S LARGEST MALL NORTHWEST SAID THE LOW FARES GENERATED AN EXTRA 15000 TICKET SALES DELTA AIR LINES MEANTIME CUT TICKET PRICES FOR ROUNDTRIP TRAVEL ON CHRISTMAS DAY AND THEN ON DEC 31 AND JAN 1 MOST RIVALS MATCHED DELTA'S MOVE THE CHRISTMAS SALE WHICH CUT SOME ROUNDTRIP FARES TO 79 RESULTED IN AT LEAST 7000 EXTRA PASSENGERS AND 500000 IN EXTRA REVENUE A DELTA SPOKESMAN SAID I FIRST THOUGHT THAT A ONEDAY CHRISTMAS SALE WOULD HAVE SOME PEOPLE SAYING COME ON DELTA COULDN'T YOU BE A LITTLE BIT MORE GENEROUS' BUT WE HAVEN'T HAD ONE COMPLAINT THE SPOKESMAN SAID AIRLINE CRITICS SAY THE LATEST FARE FAD WILL HAVE LITTLE IMPACT IN SOLVING THE INDUSTRY'S WOES NAMELY HIGH COSTS WHICH LEAD TO HIGH FARES WHICH FORCE CARRIERS TO DISCOUNT TICKET PRICES TO BEGIN WITH BUT OTHER OBSERVERS CREDIT THE AIRLINES FOR DELIVERING A REASONABLY INNOVATIVE PROMOTION IT'S SHOWMANSHIP THROW SOMETHING OUT THERE THAT GRABS CONSUMERS' ATTENTION BUT IT MAY PRESAGE MORE CREATIVE MARKETING SUCH AS TARGETING SPECIFIC FLIGHTS AS OPPOSED TO ROUTES FOR DISCOUNTS SAID JOSE G DA ROSA PRESIDENT OF BALBOA TRAVEL INC IN SAN DIEGO 9401060067 940106 TECHNOLOGY BRIEF COPLEY PHARMACEUTICALS INC INHALATION SOLUTION RECALLED BECAUSE OF BACTERIA PROBLEM COPLEY PHARMACEUTICALS INC ANNOUNCED A NATIONWIDE RECALL OF A RESPIRATORY INHALATION SOLUTION BECAUSE OF BACTERIAL CONTAMINATION THE CANTON MASS COMPANY SAID IT RECALLED ALL UNITS OF ALBUTEROL SULFATE INHALATION SOLUTION A PRODUCT USED BY TO RELIEVE ASTHMA AND OTHER RESPIRATORY AILMENTS COPLEY SAID CONSUMERS USING ALBUTEROL SULFATE INHALATION SOLUTION 05 SHOULD STOP USING THE PRODUCT AT ONCE AND RETURN ANY UNUSED PORTIONS TO THEIR PHARMACIST COPLEY SAID IT WAS ISSUING THE RECALL IN COOPERATION WITH THE FOOD AND DRUG ADMINISTRATION THE RECALL DOESN'T AFFECT ALBUTEROL SULFATE INHALATION SOLUTION 0083 9401060066 940106 BUSINESS BRIEF COMPUTER SCIENCES CORP COMPANY ACQUIRES A UNIT OF SEQUA'S ATLANTIC RESEARCH COMPUTER SCIENCES CORP SAID IT ACQUIRED ARC PROFESSIONAL SERVICES GROUP A UNIT OF SEQUA CORP'S ATLANTIC RESEARCH CORP FOR ABOUT 64 MILLION IN CASH ARC A ROCKVILLE MD INFORMATION TECHNOLOGY CONCERN HAS 2000 EMPLOYEES AND ABOUT 170 MILLION IN ANNUAL REVENUE WITH ABOUT 80 COMING FROM FEDERAL CONTRACTS MUCH OF WHICH COMES FROM THE DEFENSE DEPARTMENT COMPUTER SCIENCES AN EL SEGUNDO CALIF INFORMATION TECHNOLOGY COMPANY GENERATES ABOUT HALF OF ITS REVENUE OR 125 BILLION A YEAR FROM FEDERAL CONTRACTS THE OPERATION WILL BECOME PART OF COMPUTER SCIENCES' SYSTEMS ENGINEERING UNIT BASED IN FALLS CHURCH VA 9401060065 940106 BUSINESS BRIEF BELLSOUTH CORP FLORIDA PUBLIC COUNCIL CLEARS UNIT'S 300 MILLION RATE CUT BELLSOUTH CORP ATLANTA SAID FLORIDA'S LEADING CONSUMER ADVOCATE FLORIDA PUBLIC COUNCIL APPROVED A 300 MILLION RATE CUT OVER THREE YEARS FOR THE COMPANY'S SOUTHERN BELL UNIT THE RATE CUT WHICH MUST STILL BE APPROVED BY THE FLORIDA PUBLIC SERVICE COMMISSION WOULD REDUCE THE MONTHLY PHONE BILL FOR THE AVERAGE CUSTOMER IN FLORIDA BY ABOUT 1 BY ELIMINATING THE CHARGE FOR TOUCHTONE SERVICE ABOUT 93 OF BELLSOUTH'S CUSTOMERS IN FLORIDA HAVE TOUCHTONE SERVICE A SPOKESMAN SAID THE RATE CUT HAS BEEN ENDORSED BY FLORIDA'S ATTORNEY GENERAL THE AMERICAN ASSOCIATION OF RETIRED PERSONS AND THE FLORIDA CONSUMER ACTION NETWORK 9401060064 940106 MENDOZA LED MORGAN TO BUY BANESTO STAKE BY STEVEN LIPIN AND NICHOLAS BRAY STAFF REPORTERS OF THE WALL STREET JOURNAL ROBERTO MENDOZA THE CONTROVERSIAL VICE CHAIRMAN OF JP MORGAN & CO APPEARS TO HAVE BEEN THE CHIEF PROPONENT BEHIND THE BANK'S FAILED INVESTMENT IN A SPANISH BANK PEOPLE CLOSE TO MORGAN SAY MR MENDOZA USED HIS CONSIDERABLE CLOUT TO FORCE THE INVESTMENT ON MORGAN'S CORSAIR PARTNERSHIP A LIMITED PARTNERSHIP OVER THE OBJECTIONS OF OTHER MORGAN STAFFERS INCLUDING FUND MANAGER NICHOLAS PAUMGARTEN BY MOST ACCOUNTS MR MENDOZA WAS THE ARCHITECT OF MORGAN'S ILLFATED INVESTMENT IN BANCO ESPANOL DE CREDITO OR BANESTO WHICH WAS EFFECTIVELY SEIZED BY SPANISH GOVERNMENT REGULATORS LAST WEEK MORGAN AND ITS CLIENTS INVESTED 166 MILLION LAST YEAR THROUGH THE CORSAIR PARTNERSHIP A 1 BILLION FUND SET UP TO INVEST IN TROUBLED BANKS AROUND THE WORLD SOON AFTER MORGAN TOOK THE POSITION IN BANESTO MR MENDOZA WAS NAMED TO THE SPANISH BANK'S BOARD BANESTO'S MANAGEMENT AND THE BOARD WERE OUSTED LAST WEEK AND CORSAIR IS AT RISK OF LOSING ITS INVESTMENT WITHIN THE BANK MR MENDOZA IS UNDERSTOOD TO HAVE TAKEN FULL RESPONSIBILITY MR MENDOZA FIRST GAINED WIDE PUBLIC ATTENTION IN 1988 WHEN HE PUSHED STAID JP MORGAN INTO BACKING ONE OF ITS CLIENTS IN A HOSTILE BID FOR ANOTHER MORGAN CLIENT WHILE HIS REPUTATION FOR PUSHING THE ENVELOPE HAD STOOD HIM IN GOOD STEAD AT THE FIRM EARLIER HIS CENTRAL ROLE IN THE BANESTO INVESTMENT THREATENS TO UNDERMINE HIS STANDING ACCORDING TO PEOPLE CLOSE TO THE BANK MR MENDOZA WOULDN'T COMMENT SO FAR THE BANK IS PUTTING A BRAVE FACE ON A BAD SITUATION RICHARD MAHONY A SPOKESMAN FOR THE BANK SAID MORGAN IS TAKING A LONGTERM VIEW AND WILL WATCH TO SEE WHAT THE FINAL OUTCOME WILL BE WE WILL WIN SOME AND LOSE SOME THE CORSAIR FUND'S INVESTMENT IN BANESTO ISN'T THE FIRST INTEREST THAT MR MENDOZA HAS EXPRESSED IN THE SPANISH BANK IN 1991 HE PROPOSED THAT MORGAN CAPITAL THE UNIT THAT INVESTS THE BANK'S OWN CAPITAL TAKE A 25 STAKE IN BANESTO'S NONBANKING SUBSIDIARY CORP INDUSTRIAL Y FINANCIERA DE BANESTO ACCORDING TO A PERSON FAMILIAR WITH THE PROPOSAL THAT IDEA MET RESISTANCE FROM MORGAN STAFFERS IN MADRID WHO EXPRESSED RESERVATIONS ABOUT THE AGGRESSIVE FINANCIAL TACTICS OF BANESTO'S FLASHY CHAIRMAN MARIO CONDE THOSE OBJECTIONS REACHED THE TOP ECHELONS AT MORGAN AND MR MENDOZA'S PROPOSAL WAS REJECTED THE BANK OF SPAIN IN A REPORT ISSUED YESTERDAY SAID BANESTO'S BOOKS FAILED TO REFLECT ITS TRUE PERFORMANCE MR MENDOZA WAS MORE SUCCESSFUL 14 MONTHS LATER DESPITE SIMILAR OBJECTIONS FROM MADRID STAFFERS AND MORE IMPORTANTLY FROM MR PAUMGARTEN THE CORSAIR FUND'S MANAGER SUPPORTERS OF MR PAUMGARTEN ON WALL STREET SAY HE VOICED HIS RESERVATIONS ABOUT THE INVESTMENT BUT ACKNOWLEDGE THAT HE SUPPORTED THE TRANSACTION ONCE IT WAS CLEAR MR MENDOZA WANTED IT TO PROCEED NEITHER MR PAUMGARTEN NOR MR MAHONY WOULD COMMENT THE BANK WON'T EVEN ACKNOWLEDGE THAT AN ARGUMENT TOOK PLACE MR MAHONY THE SPOKESMAN DECLINED COMMENT ON THAT SPECIFIC ISSUE BUT SAID IF THERE WAS A VIGOROUS DEBATE THAT'S NOT A BAD THING IT'S HEALTHY FOR THE PROCESS IT'S WHAT YOU'D EXPECT WHEN CONSIDERING AN INVESTMENT OF THIS KIND SOME POTENTIAL INVESTORS OF CORSAIR WHO DID THEIR OWN DUEDILIGENCE INQUIRIES ON BANESTO WERE PUT OFF BY SOME OF THE BANK'S PRACTICES AMONG THE COMPLAINTS WERE BANESTO'S INABILITY TO QUANTIFY ITS RESERVES FOR CREDIT LOSSES AND THE FACT THAT SIZABLE PARTS OF THE BANK'S BUSINESSES WEREN'T COMPUTERIZED BUT WERE TRACKED MANUALLY ON PIECES OF PAPER NOW CURRENT INVESTORS IN CORSAIR ARE GRIPING TO RIVAL BANKS THAT THEY INVESTED IN THE FUND SOLELY ON THE BASIS OF MORGAN'S REPUTATION BUT THEY BELIEVE MORGAN'S DUEDILIGENCE INVESTIGATION WAS INADEQUATE MR MAHONY SAID HOWEVER THAT WE WERE PLEASED TO SEE THAT SPANISH OFFICIALS LAST WEEK PRAISED THE THOROUGHNESS OF MORGAN'S DISCLOSURES IN THE EQUITY OFFERING CLEARLY MORGAN WAS EARNING SIGNIFICANT FEES FROM ITS RELATIONSHIP WITH BANESTO BUT MORGAN EXECUTIVES SAY IT WOULDN'T PUT ITS CLIENTS' FUNDS AT RISK JUST TO WIN UNDERWRITING ASSIGNMENTS FOR MORGAN CORSAIR WAS THE FIRST BIG FORAY INTO MERCHANT BANKING IN YEARS IT WAS A NATURAL EVOLUTION MR MENDOZA SAID IN AN INTERVIEW IN JULY AFTER ALL MORGAN HAD SPENT THE PREVIOUS 10 YEARS MOVING AWAY FROM TRADITIONAL BANKING TOWARD MORE SOPHISTICATED PRODUCTS DEMANDED BY ITS CLIENTS AND MERCHANT BANKING WAS ONE OF THE LAST OF THOSE PRODUCTS IT HAS BEEN CREATING AND IS EXPECTED TO CLOSE SOON ON TWO 500 MILLION FUNDS ONE TO INVEST IN REAL ESTATE THE OTHER TO INVEST IN INSURANCE MORGAN HAD BEEN INVESTING ON ITS OWN THROUGH MORGAN CAPITAL AND RACKED UP HUGE GAINS WITH INVESTMENTS IN SUCH DEALS AS THE LEVERAGED BUYOUT OF HOSPITAL CORP OF AMERICA MORGAN'S HCA STOCK IS NOW VALUED BY ANALYSTS AT CLOSE TO 1 BILLION AND ITS INSURANCE HOLDINGS HAVE ALSO BEEN A BIG MONEYWINNER CAPITAL IS SOMETHING TO BE HUSBANDED AND INVESTED CAREFULLY MR MENDOZA SAID IN THE JULY INTERVIEW ALTHOUGH MR MENDOZA A YALEEDUCATED CUBANBORN EXECUTIVE DOESN'T FIT THE TYPICAL MORGAN MOLD HE IS SAID TO BE DEEPLY DEVOTED TO THE COMPANY HE CAN BE GRACIOUS IN PERSON BUT DOMINEERING AND HARDNOSED IN BUSINESS MATTERS HE MORE THAN ANYONE ELSE BUILT MORGAN'S MERGER AND INVESTMENT BANKING BUSINESS FROM ALMOST NOTHING AND IS WIDELY REGARDED AS A RAINMAKER WHO CAN BRING IN DEALS HE'S A FIERCE COMPETITOR IN SPORTS AND HAS BEEN KNOWN TO ENGAGE IN MIDNIGHT TENNIS MATCHES WHEN HE WAS A RISING STAR AMONG WALL STREET'S MERGER PROS HE TURNED HEADS BY BECOMING THE FIRST PERSON IN A COMMERCIAL BANK TO EARN MORE THAN 2 MILLION HE FRUSTRATED RIVALS ON WALL STREET BECAUSE HE WAS WILLING TO COMPETE ON PRICE FOR M&A SERVICES HE HELPED BREAK THE CLUBBY OLDWORLD CULTURE OF MORGAN IN 1988 BY ADVISING ONE CLIENT F HOFFMANLA ROCHE TO TAKE A HOSTILE RUN AT STERLING DRUG ANOTHER MORGAN CLIENT HE LATER GOT INTO HOT WATER AGAIN WHEN HE ADVISED A COMPANY THEN CALLED SMITHKLINE BECKMAN ON ITS 37ASHARE BID FOR INTERNATIONAL CLINICAL LABS INC THE PROBLEM WAS THAT JAMES HOUGHTON CORNING GLASS CHAIRMAN WAS A MORGAN DIRECTOR AND HAD PREVIOUSLY BID 26 FOR THE COMPANY MR HOUGHTON THREATENED TO LEAVE THE MORGAN BOARD BUT ULTIMATELY WAS PERSUADED TO REMAIN MORGAN EARNED MORE ADVISING SMITHKLINE THAN ITS WORK FOR CORNING ACCORDING TO THE HOUSE OF MORGAN RON CHERNOW'S BOOK ABOUT THE BANK BUT THE BANESTO INVESTMENT IS CONSIDERED TO BE MR MENDOZA'S FIRST MAJOR BLEMISH AND MORGAN EMPLOYEES NOW WHISPER ABOUT THE AFTERSHOCKS WHAT REMAINS UNCLEAR IS WHY HE WAS SO DETERMINED TO DO BUSINESS WITH BANESTO AND MR CONDE INDEED ONE DAY BEFORE THE BANK OF SPAIN TOOK ACTION MR MENDOZA WROTE TO REGULATORS THAT A PLAN TO TURN AROUND THE BANK WAS SOUND AND HAS BEEN REVIEWED BY THE SENIOR MANAGEMENT OF JP MORGAN IN OUR ROLE AS FINANCIAL ADVISER TO BANESTO 9401060063 940106 TECHNOLOGY AT&T BID TO BUY MCCAW CELLULAR MAY HAVE HIT SNAG BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICAN TELEPHONE & TELEGRAPH CO'S PLAN TO BUY MCCAW CELLULAR COMMUNICATIONS INC MAY HAVE HIT A SNAG AFTER THE JUSTICE DEPARTMENT SAID AT&T SHOULD SEEK SPECIAL PERMISSION FROM FEDERAL COURT IN ITS AT&TMCCAW OPINION WHICH IS NONBINDING THE JUSTICE DEPARTMENT SAID THE COMBINATION SHOULD REQUIRE A WAIVER FROM DISTRICT JUDGE HAROLD H GREENE WHO OVERSEES THE CONSENT DECREE THAT BROKE UP AT&T AND ITS FORMER BELL SYSTEM AT&T HAS ARGUED THAT IT DOESN'T NEED SUCH DISPENSATION THE AGENCY'S OPINION FILED AT THE US DISTRICT COURT FOR THE DISTRICT OF COLUMBIA WAS CONSIDERED BY SOME ANALYSTS TO BE A MINOR TECHNICALITY GREENE CAN TAKE IT OR LEAVE IT SAID GEORGE DELLINGER ANALYST AT NATWEST SECURITIES CORP THIS IS NOT A DEALBREAKER FOR AT&T THE AGENCY WAS RESPONDING TO A PETITION BY BELLSOUTH CORP WHICH HAD SOUGHT A COURT REVIEW HOWEVER IN A RELATED DECISION THE JUSTICE DEPARTMENT SAID IT DIDN'T SUPPORT THE ATLANTABASED BABY BELL'S REQUEST THAT IT BE ALLOWED TO OFFER LONGDISTANCE WIRELESS SERVICES IN ITS REGION IN COMPETITION WITH INDEPENDENT CELLULAR OPERATORS AN AT&T SPOKESMAN BRUSHED ASIDE THE OPINION FAVORING BELLSOUTH'S WAIVER DEMANDS SAYING SUCH A WAIVER IS NOT REQUIRED AND EVEN IF IT IS WE EXPECT THERE WOULD BE NO SIGNIFICANT PROBLEM IN GETTING IT APPROVED AT&T'S SPOKESMAN NOTED THAT THE CONSENT DECREE THAT BROKE UP AT&T PROHIBITED THE COMPANY FROM REACQUIRING BELL ASSETS IT OWNED AT THE TIME OF ITS BREAKUP BUT THE INDEPENDENT CELLULAR FRANCHISES IN WHICH THE BELL COMPANIES HAVE MAJORITY STAKES WITH MCCAW AS A MINORITY PARTNER ARE PROPERTIES THAT THE BABY BELLS DID NOT OWN AT THE TIME OF AT&T'S GIANT DIVESTITURE THAT'S THE WHOLE REASON WE THINK THERE'S NO REASON TO GET A WAIVER THE AT&T SPOKESMAN SAID WE STILL MAINTAIN THAT THERE IS NO IMPEDIMENT TO CLOSING THE AT&TMCCAW MERGER QUICKLY BY THE MIDDLE OF THE YEAR INDEED BELLSOUTH MAY ITSELF HAVE RECEIVED A SETBACK YESTERDAY WHEN THE JUSTICE DEPARTENT SAID IT DIDN'T FAVOR BELLSOUTH'S REQUEST TO PROVIDE LONGDISTANCE SERVICES OVER ITS WIRELESS NETWORK BELLSOUTH HAS MAINTAINED THAT THE AT&TMCCAW COMBINATION WITH ITS LOCAL WIRELESS NETWORKS AND LONGDISTANCE LINES COULD TURN AN ENTIRE REGION INTO AN INEXPENSIVE LOCAL CALLING AREA BY CONTRAST A PHONE COMPANY SUCH AS BELLSOUTH WOULD HAVE TO USE LONGDISTANCE LINKS FROM ANOTHER CARRIER AND PRICE CELLULAR CALLS HIGHER TO RECOVER THESE ADDITIONAL COSTS A BELLSOUTH SPOKESMAN SAID EVEN SO THE BELLSOUTH SPOKESMAN CALLED THE OPINION ON LONGDISTANCE SERVICE A MINOR TECHNICAL POINT SUGGESTING THAT THE COMPANY COULD AGAIN SEEK PERMISSION TO PROVIDE THESE SERVICES IF AT&T IS ASKED TO FILE A REQUEST FOR A WAIVER THE OPINION IS NOT WHAT WE ASKED FOR BUT IT'S A POSITIVE OPINION IN THAT IT DEMONSTRATES THAT THE CONSENT DECREE IS OUTMODED 9401060062 940106 LEISURE & ARTS FILM DOWN BUT NOT OUT IN LONDON AND DUBLIN BY JULIE SALAMON YOU CAN'T MAKE AN OMELETTE WITHOUT CRACKING A FEW EGGS MANKIND IS THE EGGS AND THE OMELETTE STINKS THUS SPEAKS JOHNNY THE VAGRANT PHILOSOPHER ANTIHERO OF NAKED THE MUCHPRAISED FILM FROM BRITISH FILMMAKER MIKE LEIGH IT'S THE KIND OF FILM THAT CRITICS CALL BRAVE MAINLY BECAUSE IT'S SO GRIM AND BECAUSE ITS MAJOR CHARACTERS ARE SO RESOLUTELY UNAPPEALING THE MEN ARE CRUEL WOMENHATERS THE WOMEN ARE MASOCHISTS DARKNESS IS THE WORKING METAPHOR IN THIS FILM WHICH BILLS ITSELF AS AN EXCURSION INTO THE SEAMY UNDERSIDE OF LIFE AMONG THE RECESSIONRAVAGED WORKING CLASS THERE'S NO WAY TO MISS THE METAPHOR NOT WITH DICK POPE'S DEEPLY SHADOWED CINEMATOGRAPHY BUT EVEN WITHOUT THE PICTORIAL GLOOM SPENDING A COUPLE OF HOURS WITH THIS SORRY COLLECTION OF HUMANKIND WOULD BE DEPRESSING I FOUND THE PICTURE'S RELENTLESSLY BLEAK VISION OF BRITISH WORKINGCLASS LIFE TEDIOUS STILL AT TIMES I COULD UNDERSTAND THE PREVAILING FASCINATION WITH NAKED IF NOT THE EXUBERANT PRAISE IT'S RECEIVED MR LEIGH WHO WROTE AS WELL AS DIRECTED THE FILM HAS AN AGILE WIT THAT PERIODICALLY MANIFESTS ITSELF HERE WITH A STRANGE SULLEN FEROCITY HIS CHARACTERS MAY NOT BE MORE THAN THEY SEEM TO BE BUT MR LEIGH MANAGES TO MAKE THE POSSIBILITY PLAUSIBLE THE FILM BEGINS WITH JOHNNY ABUSING ONE WOMAN AND ENDS WITH HIM ABUSING ANOTHER IN BETWEEN HE ABUSES STILL OTHERS HE IS A TALL SKINNY 27YEAROLD DRIFTER WHO HAS RUN AWAY FROM MANCHESTER AND COME TO LONDON LANDING AT THE HOME OF AN OLD GIRLFRIEND LOUISE SHE ISN'T HOME SO HE HAS A CONVERSATION AND SEX WITH ONE OF HER ROOMMATES A WASTED WAIF NAMED SOPHIE JOHNNY HAS A STRANGE SEDUCTIVE POWER OVER ALL THE FILM'S WOMEN EVEN WHEN HE BEATS THEM AND PULLS THEIR HAIR AND TALKS MEANLY TO THEM BAD THINGS HAPPEN TO HIM TOO BUT THE FILM BEGS NO PITY FOR JOHNNY AND EARNS NONE JOHNNY PLAYED WITH SARDONIC POWER BY DAVID THEWLIS IS A FORCEFUL CHARACTER AND THAT FORCE IS MAINLY MENTAL HE ISN'T JUST ANOTHER BAD GUY WHO HATES WOMEN HE IS A TALKER AND A GOOD ONE A NIHILIST WITH A SHREWDLY CYNICAL INTELLIGENCE IF HE DIDN'T LIKE TO PROWL HE MIGHT BE HAPPY SITTING IN COFFEEHOUSES EXPOUNDING ON THE DISMAL STATE OF THE UNIVERSE HOWEVER HE WON'T SETTLE FOR HYPOTHETICALS HIS ODYSSEY THROUGH LONDON INTRODUCES HIM TO MANY SAD WEARY PEOPLE WHO SATISFY HIS SARDONIC WORLDVIEW WHICH HE THEN REINFORCES BY LEAVING THEM SADDER AND WEARIER THAN THEY WERE WHEN THEY MET HIM JOHNNY'S COUNTERPART IS A MYSTERIOUS MAN WHO CALLS HIMSELF JEREMY AND SEBASTIAN THIS MAN PLAYED WITH ROBOTIC COOLNESS BY GREG CRUTTWELL IS RICH AND CONVENTIONALLY HANDSOME AND IS EVEN MORE CRUEL TO WOMEN THAN JOHNNY IS THOUGH THEY EVENTUALLY END UP IN THE SAME HOUSE ABUSING THE SAME WOMEN IT WAS UNCLEAR TO ME WHAT PURPOSE JEREMY/SEBASTIAN SERVES OTHER THAN SHARING THE WOMANBEATING CHORES WHICH HE DOES WITH EXUBERANT VICIOUSNESS IT MUST BE SAID THAT MR LEIGH THE FILMMAKER DOESN'T SEEM TO BE A WOMANHATER HIMSELF UNLESS HE IS USING JOHNNY AND JEREMY/SEBASTIAN TO VENT SOME PRIVATE RAGE THE WOMEN IN NAKED AREN'T MERE PUNCHING BAGS THEY MAY NOT ARTICULATE THEIR DESPAIR AS PUNGENTLY AS JOHNNY BUT THEY EXPRESS IT VERY WELL THE DUBLIN WORKINGCLASS WORLD PRESENTED IN THE SNAPPER ON THE OTHER HAND IS A RATHER GOODNATURED PLACE WHERE PEOPLE APPROACH THE TRAVAILS AND PLEASURES OF EVERYDAY LIFE WITH WRY FORTITUDE THIS SLIGHT SWEET COMEDY DIRECTED WITH NICE WHIMSY BY STEPHEN FREARS WAS ADAPTED BY WRITER RODDY DOYLE FROM THE SECOND OF HIS BARRYTOWN TRILOGY NOVELS ABOUT LIFE IN THE DUBLIN NEIGHBORHOOD OF BARRYTOWN THE FIRST WAS THE COMMITMENTS ABOUT A LOCAL ROCKANDROLL BAND WHICH WAS TURNED INTO A CHARMING PICTURE BY ALAN PARKER IN 1991 THE SNAPPER IS SIMPLY THE STORY OF A YOUNG WOMAN WHO BECOMES PREGNANT OUTOFWEDLOCK AND HOW SHE HER PARENTS AND MANY BROTHERS AND SISTERS AND THE NEIGHBORS COPE SHE'S RELATIVELY BEATIFIC HER FAMILY IS DEAR THE NEIGHBORS GOSSIP ALL WITH QUIRKY WIT MOST ENDEARING IS THE UNBORN BABY'S GRANDFATHER COLM MEANEY AS HE FINDS THE EMBARRASSMENT OF HIS DAUGHTER'S PREGNANCY TURN INTO PLEASURE THE SNAPPER A GENTLY UNASSUMING PICTURE IS YET ANOTHER SURPRISE FROM STEPHEN FREARS THE DIRECTOR HASN'T MADE ALL THAT MANY FILMS BUT HE'S MADE A WIDE VARIETY MOST OF THEM QUITE GOOD HE FIRST MADE A SPLASH IN THIS COUNTRY WITH MY BEAUTIFUL LAUNDRETTE 1985 THIS IS A WONDERFULLY FRESH MOVIE ABOUT THE CLASH OF CULTURES IN WORKINGCLASS LONDON BETWEEN WHITE STREET GANGS ON THE DOLE AND PAKISTANI IMMIGRANTS TRYING TO MAKE THEIR WAY THIS CRYSTALLIZES CASUALLY INTO A LOVE AFFAIR BETWEEN TWO MEN ONE FROM EACH FACTION LATER IN THE US MR FREARS MADE DANGEROUS LIAISONS 1988 THE GRIFTERS 1990 AND HERO 1992 ALL ENJOYABLE ALL VERY DIFFERENT FROM EACH OTHER 9401060061 940106 WHO'S NEWS ROCKWELL INTERNATIONAL GIVES LONGTERM PAY TO TOP FIVE OFFICIALS SEAL BEACH CALIF ROCKWELL INTERNATIONAL CORP AFTER ELIMINATING ALL LONGTERM COMPENSATION FOR SENIOR EXECUTIVES IN 1992 GAVE ITS TOP FIVE OFFICIALS NEARLY 8 MILLION IN SUCH INCENTIVE PAY FOR 1993 CHAIRMAN DONALD R BEALL ACCORDING TO THE COMPANY'S PROXY STATEMENT COLLECTED 35 MILLION IN LONGTERM INCENTIVE PAY IN ADDITION TO THE 17 MILLION HE RECEIVED IN ANNUAL SALARY AND BONUS THE COMPANY'S OTHER FOUR HIGHESTPAID EXECUTIVES RECEIVED AN ADDITIONAL 45 MILLION IN LONGTERM INCENTIVE PAY OVERALL THE COMPANY'S STATEMENT LISTS TOTAL COMPENSATION FOR THE FIVE EXECUTIVES AT NEARLY 13 MILLION PROXY MATERIALS INDICATE ROCKWELL'S BOARD BELIEVES BASE SALARIES FOR THE EXECUTIVES REMAIN SOMEWHAT BELOW THE MEDIAN FOR INDUSTRY BUT LONGTERM INCENTIVES OFFER THE OPPORTUNITY FOR COMPENSATION AT THE HIGH END 9401060060 940106 WHO'S NEWS TLC BEATRICE TO REPLACE FUGETT AS CHAIRMAN CEO BY CONSTANCE MITCHELL FORD STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TLC BEATRICE INTERNATIONAL HOLDINGS INC SAID IT WILL REPLACE JEAN S FUGETT JR AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER A MOVE THAT WAS GREETED WITH ENTHUSIASM BY SOME STOCKHOLDERS THE INTERNATIONAL FOOD COMPANY SAID THAT LOIDA NICOLAS LEWIS THE MAJORITY SHAREHOLDER OF TLC BEATRICE WILL ASSUME THE TITLE OF CHAIRMAN EFFECTIVE FEB 1 THE COMPANY SAID IT HAS BEGUN A SEARCH FOR A CHIEF EXECUTIVE WE ARE EXCITED THAT THEY ARE LOOKING FOR A NEW CEO SAID MARGARET SCHELL AN ANALYST AT JEFFERIES & CO WHICH TRADES THE COMPANY'S CLOSELY HELD STOCK TLC BEATRICE SHE SAID REALLY NEEDS SOMEONE RUNNING THE COMPANY WHO IS FAMILIAR WITH THE INDUSTRY MRS LEWIS IS THE WIDOW OF REGINALD F LEWIS TLC BEATRICE'S FOUNDER CHAIRMAN AND CEO WHO DIED A YEAR AGO AFTER A BRIEF ILLNESS PRIOR TO HIS DEATH MR LEWIS WAS ONE OF AMERICA'S BESTKNOWN BLACK BUSINESS FIGURES AMASSING A FORTUNE ESTIMATED AT 400 MILLION CHIEFLY BY ACQUIRING COMPANIES IN LEVERAGED BUYOUTS AFTER HIS DEATH MANAGEMENT CONTROL OF TLC BEATRICE WAS HANDED TO MR FUGETT MR LEWIS'S HALFBROTHER MR LEWIS'S FAMILY OWNS ABOUT 55 OF THE COMPANY'S STOCK MOST OF THE REMAINING SHARES ARE OWNED BY TLC BEATRICE BONDHOLDERS SHAREHOLDER CONFIDENCE IN MR FUGETT A LAWYER WHO ONCE PLAYED PROFESSIONAL FOOTBALL QUICKLY DETERIORATED AS THE COMPANY'S FORTUNES DECLINED AND AFTER IT WAS DISCLOSED THAT THE COMPANY WAS CONSIDERING BIDDING ON THE BALTIMORE ORIOLES BASEBALL TEAM AT THAT POINT SHAREHOLDERS LOST PATIENCE WITH MR FUGETT'S LEADERSHIP AND FORCED THE COMPANY TO REGISTER ITS SECURITIES WITH THE SECURITIES AND EXCHANGE COMMISSION A MOVE THAT ESSENTIALLY WILL TAKE THE COMPANY PUBLIC THE COMPANY'S STOCK IS EXPECTED TO BEGIN TRADING ON THE NASDAQ STOCK MARKET SOON MR FUGETT SAID HE WILL SERVE AS CEO UNTIL A SUCCESSOR IS APPOINTED SUBSEQUENTLY HE WILL CONTINUE AS A MEMBER OF THE BOARD AND THE MANAGEMENT COMMITTEE MRS LEWIS AN IMMIGRATION ATTORNEY AND NATIVE OF THE PHILIPPINES IS CURRENTLY CHAIRMAN OF THE REGINALD F LEWIS FOUNDATION A PRIVATE ENTITY THAT HAS PLEDGED OR GIVEN 12 MILLION TO INSTITUTIONS AROUND THE WORLD WITH AN EMPHASIS ON AFRICANAMERICAN CAUSES 9401060059 940106 WEDNESDAY'S MARKETS STOCKS GAIN 1492 POINTS TO A RECORD BONDS SLUMP ON RISE IN FACTORY ORDERS THE DOLLAR ADVANCES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE OVERCAME A PLUNGE IN BOND PRICES TO SURGE TO A RECORD THE DOLLAR ROSE THE INDUSTRIAL AVERAGE JUMPED 1492 POINTS TO 379882 EDGING PAST THE PREVIOUS RECORD OF 379433 SET DEC 29 STANDARD & POOR'S 500STOCK INDEX GAINED 066 TO 46755 AND THE NASDAQ COMPOSITE INDEX ROSE 377 TO 77805 INVESTORS PILED INTO ECONOMICALLY SENSITIVE STOCKS BETTING ON STILL FURTHER STRENGTH IN THE ECONOMY IN THE LATEST SIGN OF THE ECONOMY'S VIGOR THE COMMERCE DEPARTMENT REPORTED THAT NEW FACTORY ORDERS ROSE 14 IN NOVEMBER TO A RECORD SEASONALLY ADJUSTED LEVEL THE DOW JONES TRANSPORTATION AVERAGE OFTEN VIEWED AS AN INDICATOR OF FUTURE ECONOMIC GROWTH SOARED 2424 POINTS TO A RECORD 177883 THAT'S A CLEAR CONFIRMATION THAT THE TREND IN THE INDUSTRIALS IS UP AND THAT WE SHOULD GET CLOSER TO 4000 ON THE DOW BEFORE THIS MOVE IS OVER SAID PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES THE STOCK MARKET'S SURGE IN THE FACE OF SLUMPING BOND PRICES ALSO SHOWED INVESTORS' OPTIMISM ABOUT THE ECONOMY MR CANELO SAID WE'RE IN A PERIOD OF SUCH POSITIVE EXPECTATIONS FOR THE ECONOMY AND FOR EARNINGS THAT STOCKS AND BONDS CAN MOVE IN OPPOSITE DIRECTIONS HE SAID BOND PRICES TUMBLED IN WHAT IS SHAPING UP AS A VOLATILE WEEK OF BONDMARKET TRADING AFTER PLUNGING MORE THAN A POINT OR OVER 10 FOR EACH 1000 FACE AMOUNT ON MONDAY THE TREASURY'S BENCHMARK 30YEAR ISSUE SOARED NEARLY A POINT TUESDAY ONLY TO SINK 3/4 POINT YESTERDAY PUSHING THE YIELD UP TO 640 THIS KIND OF TRADING SUGGESTS A PRETTY STRONG DIVIDE BETWEEN THE BONDMARKET BULLS AND BEARS SAID EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE WHILE BOTH BULLS AND BEARS RECOGNIZE THE ECONOMY IS PICKING UP STRENGTH THEY DIFFER ON WHETHER THE ACCELERATION WILL BREED INFLATION EVENTUALLY THE DEBATE WILL BE RESOLVED IN FAVOR OF THE BULLS AS THE ECONOMY CONTINUES TO GROW BUT INFLATION STAYS LOW THANKS TO PRODUCTIVITYLED GROWTH MR YARDENI ARGUED HE EXPECTS THE BOND MARKET TO REMAIN VOLATILE THROUGH THE QUARTER AS THE YIELD ON THE TREASURY'S 30YEAR ISSUE SETTLES INTO A TRADING RANGE OF 62 TO 65 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 026 TO 11174 IN MAJOR MARKET ACTION STOCK PRICES CLIMBED VOLUME TOTALED 3751 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1196 ISSUES ROSE AND 999 FELL THE DOLLAR GAINED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17395 MARKS AND 11290 YEN COMPARED WITH 17355 MARKS AND 11270 YEN TUESDAY 9401060058 940106 BUSINESS BRIEF SOCIETY CORP KEYCORP AND SOCIETY SET MEETINGS FOR MERGER VOTE SPECIAL SHAREHOLDER MEETINGS HAVE BEEN SCHEDULED FOR CLEVELANDBASED SOCIETY CORP AND ALBANY NYBASED KEYCORP ON FEB 16 TO VOTE ON THE MERGER AGREEMENT BETWEEN THE TWO COMPANIES DETAILS ABOUT THE MEETINGS AND TERMS OF THE MERGER ARE BEING SENT TO SHAREHOLDERS IN PROXY MATERIALS SHAREHOLDERS OF RECORD AT THE CLOSE OF BUSINESS DEC 28 1993 WILL HAVE THE RIGHT TO VOTE AT THE MEETINGS THE TWO BANK HOLDING COMPANIES AGREED TO MERGE ON OCT 4 1993 WITH THE NEW CORPORATION TO BE NAMED KEY BANCSHARES INC THE TWO COMPANIES ALSO SAID SHAREHOLDERS WOULD VOTE ON A COMBINED BOARD OF DIRECTORS AT AN ANNUAL MEETING FOR THE NEW COMPANY ON MAY 19 1994 9401060057 940106 MELLON BANK SMITH BARNEY SHEARSON REACH ACCORD ON DIVERTING OF BUSINESS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH MELLON BANK CORP AND SMITH BARNEY SHEARSON INC REACHED A SETTLEMENT IN MELLON'S LAWSUIT ACCUSING SMITH BARNEY SHEARSON OF DIVERTING MUTUALFUND BOOKKEEPING BUSINESS AWAY FROM THE BANK'S BOSTON CO UNIT UNDER THE AGREEMENT MELLON AND SMITH BARNEY SHEARSON WILL DIVVY UP THE BUSINESS OF PROVIDING ADMINISTRATIVE SERVICES TO CERTAIN SMITH BARNEY SHEARSON FUNDS WITH EACH RECEIVING FEES FOR SERVICES PROVIDED THE COMPANIES DIDN'T ELABORATE ON WHICH COMPANY WILL PROVIDE WHICH SERVICES THE AGREEMENT WHICH WAS ANNOUNCED AFTER THE CLOSE OF TRADING IS EFFECTIVE THROUGH MAY 2000 SMITH BARNEY SHEARSON IS OWNED BY TRAVELERS INC FORMERLY PRIMERICA CORP ANALYSTS WERE SURPRISED BY THE NATURE OF THE AGREEMENT SOME HAD EXPECTED ANY SETTLEMENT TO INVOLVE A SALE OF THE ADMINISTRATIVE CONTRACT TO SMITH BARNEY SHEARSON BY MELLON J RICHARD FREDERICKS AN ANALYST WITH MONTGOMERY SECURITIES SAID IT SOUNDS LIKE MELLON GOT AT LEAST WHAT IT BARGAINED FOR WHEN IT ACQUIRED BOSTON COAND THAT'S A POSITIVE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MELLON SHARES FELL 50 CENTS TO 52625 WHILE TRAVELERS SHARES DROPPED 25 CENTS TO 4025 MELLON ACQUIRED BOSTON CO LAST YEAR FROM AMERICAN EXPRESS CO FOR 145 BILLION ITS SUIT FILED IN SEPTEMBER IN US DISTRICT COURT IN PITTSBURGH CONTENDED THAT SMITH BARNEY SHEARSON SET UP MUTUAL FUNDS THAT ARE CLONES OR REPLICAS OF FUNDS THAT BOSTON CO ADMINISTERS FOR SHEARSON MELLON SAID THIS VIOLATED A NONCOMPETE AGREEMENT THAT WAS PART OF PRIMERICA'S 115 BILLION ACQUISITION OF SHEARSON FROM AMERICAN EXPRESS LAST YEAR IN EARLY DECEMBER A FEDERAL JUDGE ISSUED A PRELIMINARY INJUNCTION BARRING SMITH BARNEY SHEARSON FROM DIVERTING ITS MUTUALFUND BOOKKEEPING BUSINESS FROM MELLON THE INJUNCTION WAS CONSIDERED A VICTORY FOR MELLON AS THE BANK HAD CONSIDERED THE CASE CRITICAL TO THE FUTURE OF BOSTON CO'S MUTUALFUND BUSINESS THE SHEARSON FUNDS ACCOUNT FOR ABOUT 100 MILLION OF BOSTON CO'S ANNUAL MUTUALFUND SERVICING REVENUE OF 170 MILLION YESTERDAY'S SETTLEMENT COVERS ORIGINAL SHEARSON FUNDS AND ANY FUNDS SUBSEQUENTLY CREATED BY SMITH BARNEY SHEARSON THROUGH 2000 MELLON SAID THE AGREEMENT WILL RESULT IN A SLIGHT DECLINE IN EXPECTED BOSTON CO REVENUE AS MUCH AS 10 MILLION IN 1994 BUT GREATERTHANEXPECTED REVENUE IN THE FOLLOWING YEARS BECAUSE OF THE FUNDS' EXPECTED GROWTH IN ASSETS THE SETTLEMENT REVIVES WHAT ONCE WAS AN AMICABLE RELATIONSHIP BETWEEN THE TWO COMPANIES AND ITS LEADERS LONGTIME BUSINESS ASSOCIATES INDEED THE AGREEMENT WAS REACHED FOLLOWING A RECENT CONVERSATION IN NEW YORK BETWEEN THE CHAIRMEN MELLON'S FRANK V CAHOUET AND TRAVELERS' SANFORD I WEILL WE HAVE PRESERVED OUR RELATIONSHIP WITH THE SMITH BARNEY SHEARSON FUND FAMILY INTO THE NEXT CENTURY AND WILL BENEFIT FROM THE ONGOING GROWTH OF ONE OF THE NATION'S PREMIER FUND FAMILIES MR CAHOUET SAID MR WEILL SAID WE ARE PLEASED TO HAVE RESOLVED THIS HIGHLY COMPLEX MATTER IN A MUTUALLY SATISFACTORY MANNER 9401060056 940106 MERRILL LYNCH DECIDES TO HALT NEW BUSINESS WITH WASHINGTON DC NEW YORK AP MERRILL LYNCH & CO HAS TEMPORARILY SUSPENDED NEW BUSINESS WITH WASHINGTON DC AFTER ALLEGATIONS THAT MERRILL HAD A CONFLICT OF INTEREST WITH THE CITY'S INVESTMENT ADVISER LAZARD FRERES & CO MERRILL'S MOVE WILL PREVENT IT FROM COMPETING FOR ABOUT A MONTH FOR LUCRATIVE UNDERWRITING DEALS FOR DISTRICT OF COLUMBIA MUNICIPAL BONDS THE MOVE CAME AS TWO COUNCIL MEMBERS ASKED FOR AN INVESTIGATION INTO A FEESPLITTING AGREEMENT BETWEEN MERRILL AND LAZARD CONCERNING TWO FINANCIAL DEALS KNOWN AS INTERESTRATE SWAPS WITH THE DISTRICT IN 1991 AND 1992 MERRILL AND LAZARD WHICH FACE SIMILAR CONFLICT CHARGES IN MASSACHUSETTS DENY ANY WRONGDOING IN BOTH CASES THEY SAID THEY FULLY DISCLOSED AGREEMENTS IN BOTH CASES FOR LAZARD TO ADVISE MERRILL ON THE SWAPS THE SWAPS ARE COMPLEX TRANSACTIONS DESIGNED TO LOWER A CUSTOMER'S FINANCING COSTS BY EXCHANGING FIXEDINTEREST PAYMENTS FOR VARIABLE PAYMENTS MERRILL'S ACTION COMES AT A TIME OF INTENSE SCRUTINY OF THE 12 TRILLION MUNICIPALBOND MARKET AFTER ALLEGATIONS LAST YEAR FROM SEVERAL STATES OF INFLUENCEPEDDLING OR CONFLICTS OF INTEREST MERRILL IS THE NATION'S LARGEST MUNICIPALBOND UNDERWRITER 9401060054 940106 LETTERS TO THE EDITOR ANIMALRIGHTS EFFORTS HURT MEDICAL RESEARCH THE FACT THAT THERE IS AN INCREASE IN YOUNG LAWYERS INTERESTED IN ANIMAL RIGHTS LAW IS A FOREBODING SIGN FOR ANYONE CONCERNED WITH HEALTH CARE LAWYERS CHOOSE ANIMAL RIGHTS AS PET PROJECTS LEGAL BEAT DEC 2 ANIMALRIGHTS GROUPS HAVE SHIFTED THE JUDICIAL FOCUS FROM LEGITIMATE ANIMAL WELFARE ISSUES TO THE PROTECTION OF ANIMAL RIGHTS A MISGUIDED PHILOSOPHY THAT CALLS FOR THE IMMEDIATE ABOLITION OF THE USE OF ANIMALS FOR ANY REASON INCLUDING LIFESAVING MEDICAL RESEARCH AS A RESULT INSTEAD OF SECURING THE HUMANE TREATMENT OF ANIMALS ANIMALRIGHTS LAWYERS ARE NOW ASKED TO PROTECT THOSE EXTREMISTS WHO DESTROY RESEARCH FACILITIES AND CRIPPLE THE MEDICAL RESEARCH COMMUNITY THROUGH EXCESSIVE REGULATION ANIMAL RESEARCH IS ALREADY AMONG THE MOST HEAVILY REGULATED ACTIVITIES IN THE COUNTRY IN FACT DR DAVID KIPNIS OF WASHINGTON UNIVERSITY IN ST LOUIS REMARKED AT A CONGRESSIONAL BIOMEDICAL RESEARCH CAUCUS LUNCHEON RECENTLY THAT WITH ALL THESE REGULATIONS IT SEEMS IT COSTS AS MUCH OR MORE TO BUILD AN ANIMAL RESEARCH LABORATORY THAN TO BUILD A HOSPITAL MANY OF THESE REGULATIONS DO NOT CONTRIBUTE TO ANIMAL WELFARE BUT COST RESEARCHERS TIME AND MONEY THUS AMERICANS WAIT LONGER FOR CURES AND TREATMENTS AND PAY MORE FOR THEIR HEALTH CARE 9401060052 940106 TWO MEN ARE INDICTED IN SCHEME AT EXUNIT OF NATIONAL MEDICAL TOPEKA KAN A FEDERAL GRAND JURY HERE CHARGED A TOP HOSPITAL ADMINISTRATOR AND ANOTHER MAN WITH CONSPIRING TO OBTAIN PATIENT REFERRALS ILLEGALLY FOR PARKVIEW HOSPITAL OWNED BY NATIONAL MEDICAL ENTERPRISES INC AT THE TIME OF THE ALLEGED WRONGDOING MARK M JACKSON 43 YEARS OLD THE TOPEKA PSYCHIATRIC HOSPITAL'S CHIEF EXECUTIVE UNTIL MAY 1992 AND ROBERT MARTINEZ 39 A FORMER MARKETING CONSULTANT FOR THE FACILITY EACH WAS INDICTED ON 32 COUNTS RELATED TO THE ALLEGED CONSPIRACY CARRIED OUT BETWEEN NOVEMBER 1990 AND DECEMBER 1991 MR JACKSON'S INDICTMENT IS THE FIRST OF A NATIONAL MEDICAL EMPLOYEE IN CONNECTION WITH A FEDERAL INVESTIGATION OF SUSPECTED CRIMINAL MISCONDUCT IN ITS PSYCHIATRIC OPERATIONS IN NOVEMBER THE COMPANY IN SANTA MONICA CALIF AGREED TO PLEAD GUILTY TO FEDERAL CRIMINAL CHARGES INVOLVING ITS SHUTTERED PSYCHIATRIC HOSPITAL IN SAN ANTONIO NEITHER NATIONAL MEDICAL ENTERPRISES NOR PARKVIEW HOSPITAL WAS NAMED A DEFENDANT IN THE TOPEKA INDICTMENT AND NATIONAL MEDICAL DECLINED TO COMMENT ON THE ALLEGATIONS NATIONAL MEDICAL SOLD THE HOSPITAL IN JUNE ATTORNEYS FOR THE TWO INDICTED INDIVIDUALS COULDN'T BE REACHED ACCORDING TO THE INDICTMENT MR JACKSON AND MR MARTINEZ MET WITH A US POSTAL SERVICE EMPLOYEE IN NOVEMBER 1990 AND OFFERED TO PAY HIM 3000 A MONTH TO REFER PATIENTS TO PARKVIEW THE EMPLOYEE LOUIS ALBERT GARCIA WAS AN EMPLOYEE ASSISTANCE COUNSELOR MR GARCIA PLEADED GUILTY IN NOVEMBER FOR HIS ROLE IN THE SCHEME AND FACES A MAXIMUM SENTENCE OF FIVE YEARS IN PRISON AND A 50000 FINE PROSECUTORS SAID 9401060051 940106 BUSINESS BRIEF SPS TECHNOLOGIES INC COMPANY TO TAKE CHARGE FOR COSTCUTTING PROGRAM SPS TECHNOLOGIES INC SAID IT WOULD RECORD A 20 MILLION TO 25 MILLION FOURTHQUARTER CHARGE TO FUND A COSTREDUCTION PROGRAM THAT INCLUDES THE ELIMINATION OF 200 JOBS THE NEWTOWN PA COMPANY WHICH MAKES AIRCRAFT FASTENERS SAID IT HAS ALSO SUBSTANTIALLY REDUCED ITS CORPORATE STAFF IS MOVING ITS CORPORATE HEADQUARTERS TO ITS JENKINTOWN PA PLANT AND IS CUTTING NONESSENTIAL EXPENSES SPS SAID IT ANTICIPATES THAT THE FOURTHQUARTER CHARGE WILL PLACE IT IN VIOLATION OF CERTAIN LOANAGREEMENT COVENANTS BUT THE COMPANY SAID IT BELIEVES LENDERS WILL REACT FAVORABLY TO THE COSTCUTTING PROGRAM IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SPS CLIMBED 7 OR 1375 TO CLOSE AT 21125 IN THE 1992 FOURTH QUARTER SPS HAD A NET LOSS OF 94 MILLION OR 185 A SHARE ON SALES OF 748 MILLION THE QUARTER INCLUDED A RESTRUCTURING CHARGE OF 75 MILLION OR 147 A SHARE 9401060050 940106 LETTERS TO THE EDITOR THE 12 DAYS DECONSTRUCTED NOTE AFTER MEMBERS OF THE ANIMAL LIBERATION FRONT THREATENED TO THROW RED PAINT AT MY COMPUTER THE CALLING BIRDS FRENCH HENS AND PARTRIDGE HAVE BEEN REINTRODUCED TO THEIR NATIVE HABITAT TO AVOID FURTHER ANIMALAMERICAN ENSLAVEMENT THE REMAINING GIFT PACKAGE HAS BEEN REVISED TWO SIERRA CLUB CALENDARS PRINTED ON RECYCLED PROCESSED TREE CARCASSES AND A SPOTTED OWL ACTIVIST CHAINED TO AN OLDGROWTH PEAR TREE THE AUTHOR ACKNOWLEDGES INSPIRATION FROM THE LOS ANGELES TIMES BOOKLET GUIDELINES ON ETHNIC RACIAL SEXUAL AND OTHER IDENTIFICATION AND HENRY BEARD AND CHRISTOPHER CERF'S THE OFFICIAL POLITICALLY CORRECT DICTIONARY AND HANDBOOK 9401060049 940106 TECHNOLOGY MARS CRAFT'S FAILURE TIED TO FUEL LEAK BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MYSTERIOUS DISAPPEARANCE OF NASA'S MARS OBSERVER MOST LIKELY WAS CAUSED BY A FUELLINE LEAK THAT SENT THE SPACECRAFT SPINNING OUT OF CONTROL AN INVESTIGATION CONCLUDED WHILE THERE'S NO WAY OF KNOWING DEFINITIVELY WHAT HAPPENED TO THE ERRANT SPACECRAFT OUTSIDE INVESTIGATORS REPORTED A STRONGER POSSIBILITY EXISTS THAT IT IS FLOATING DEAD IN SPACE IN A LOOPING ORBIT AROUND THE SUN THAN THAT IT BLEW UP THE REPORT IS PROBABLY THE CLOSEST THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WILL EVER COME TO KNOWING WHAT CAUSED THE FAILURE OF ITS 1 BILLION MARS MISSION THIS SUMMER NASA PERMANENTLY LOST CONTACT WITH THE UNMANNED SPACE PROBE IN AUGUST ONLY THREE DAYS SHORT OF COMPLETING AN 11MONTH 450 MILLIONMILE JOURNEY TO THE RED PLANET INVESTIGATORS FAILED TO PINPOINT BLAME FOR THE LOSS OF THE SPACECRAFT WHICH WAS MANAGED BY NASA'S JET PROPULSION LABORATORY IN PASADENA CALIF THE SPACECRAFT WAS BUILT BY GENERAL ELECTRIC CO'S FORMER ASTRO SPACE DIVISION BOUGHT BY MARTIN MARIETTA CORP IN APRIL UNLIKE THE HUBBLE SPACE TELESCOPE IN WHICH A MANUFACTURING ERROR DISCOVERED AFTER LAUNCH WAS BLAMED FOR A FLAWED MIRROR THE MARS OBSERVER APPARENTLY DIDN'T FAIL BECAUSE OF ANY EGREGIOUS ERROR BY SUBCONTRACTORS OR NASA NONETHELESS THE REPORT IDENTIFIED DESIGN TECHNICAL AND MANAGEMENT PROBLEMS WITHIN NASA THAT COULD HAVE CONTRIBUTED TO THE LOSS OF THE SPACECRAFT LIKE HOMICIDE DETECTIVES WITHOUT A BODY TO EXAMINE THE MARS OBSERVER INVESTIGATORS WERE HAMPERED BY LACK OF ANY HARD EVIDENCE THE CRAFT'S TRANSMITTERS WERE PURPOSELY SHUT DOWN TEMPORARILY SO THAT ITS FUEL TANKS COULD BE PRESSURIZED TO PREPARE FOR DESCENT INTO MARTIAN ORBIT THE SPACECRAFT NEVER RENEWED CONTACT ESSENTIALLY IT'S IMPOSSIBLE TO PROVIDE CONCLUSIVE EVIDENCE OF A SMOKING GUN SAID TIMOTHY COFFEY RESEARCH DIRECTOR OF THE NAVAL RESEARCH LABORATORY WHO LED THE INVESTIGATION STILL AFTER EXAMINING 60 POSSIBLE SCENARIOS THE BOARD SAID THE MOST PROBABLE CULPRIT WAS A RUPTURE IN FUEL LINES DURING THE TANKPRESSURIZATION PROCESS CAUSING HELIUM GAS TO SPURT AND SEND THE SPACECRAFT ROTATING IN AN UNRECOVERABLE SPIN WITH THE SPACECRAFT'S ELECTRONICS SYSTEM TEMPORARILY SHUT DOWN THE SPACE PROBE COULDN'T CORRECT ITS POSITION OR POINT ITS ANTENNA TO MAKE CONTACT WITH EARTH THE SPINNING COULD HAVE CAUSED SOME HARDWARE SUCH AS THE ANTENNA TO BREAK LOOSE IF THE REPORT IS CORRECT AND THE MARS OBSERVER IS SPINNING OUT IN SPACE THE SPACECRAFT IS USELESS DR COFFEY SAID THE REPORT RULED OUT ONE OF NASA'S SUSPECTS THIS SUMMER SAYING IT IS UNLIKELY THAT THE CRAFT'S CENTRAL CLOCK FAILED BECAUSE OF A POSSIBLY FAULTY TRANSISTOR THE TRANSISTOR WAS MADE BY UNITRODE CORP NASA IS STILL CONSIDERING A LIST OF OPTIONS FOR REVISITING MARS TO MAKE UP CRUCIAL SCIENCE WORK THE MARS OBSERVER THE FIRST US SPACE PROBE TO THE PLANET IN 17 YEARS WAS SUPPOSED TO EXPLORE THE PLANET'S TERRAIN CLIMATE ATMOSPHERE AND MAGNETIC FIELDS 9401060048 940106 MET LIFE GOT CAUGHT OTHERS SENT SAME LETTER BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL AGENTS FOR MET LIFE WEREN'T THE ONLY ONES WHO TRIED TO SELL LIFE INSURANCE TO NURSES WITHOUT TELLING THEM IT WAS LIFE INSURANCE SO DID AGENTS FOR PRUDENTIAL NEW YORK LIFE AND ALLSTATE LETTERS SENT BY AGENTS OF THE OTHER THREE COMPANIES PRUDENTIAL INSURANCE CO OF AMERICA NEW YORK LIFE INSURANCE CO AND ALLSTATE CORP ARE VIRTUAL REPRODUCTIONS OF LETTERS SENT BY METROPOLITAN LIFE INSURANCE CO AGENTS FROM THE TAMPA FLA OFFICE WHICH SPARKED INVESTIGATIONS BY INSURANCE REGULATORS THE LETTERS ARE ALL HEADED BY A VARIANT OF THE PHRASE NURSE'S RETIREMENT PLAN SINCE SEPTEMBER REGULATORS IN FLORIDA AND A DOZEN OTHER STATES HAVE BEEN INVESTIGATING WHETHER MET LIFE'S TAMPA AGENTS DUPED NURSES IN FLORIDA AND ELSEWHERE INTO BUYING LIFE INSURANCE BY CALLING IT A RETIREMENT PLAN FLORIDA'S INSURANCE DEPARTMENT IS NOW ALSO LOOKING INTO NEW YORK LIFE'S SALES LETTER NO ONE IS CERTAIN WHO FIRST DREAMED UP THE PROMOTION BUT THE LETTERS ILLUSTRATE HOW AGENTS IN ADDITION TO MIMICKING ONE ANOTHER SOMETIMES DON'T REFER TO THEIR PRODUCT AS INSURANCE EMPHASIZING INSTEAD THE SAVINGS ASPECTS OF THE PLAN FAILING TO DESCRIBE AN INSURANCE PRODUCT AS INSURANCE IS PROHIBITED BY STATE CONSUMERPROTECTION LAWS THE CONTROVERSIAL NURSES' RETIREMENT PLAN IS A TWIST ON AN INCREASINGLY POPULAR LIFEINSURANCE MARKETING PROGRAM KNOWN AS THE PRIVATE PENSION PLAN THE TERM IS SIMPLY ANOTHER NAME FOR LIFE INSURANCE PRODUCTS THAT HAVE BOTH A DEATH AND AN INVESTMENT BENEFIT IT'S JUST A HOOK SAID GLENN DAILY A NEW YORK INSURANCE CONSULTANT IT'S MARKETING PUFFERY SIMILAR PROGRAMS HAVE TARGETED BEAUTICIANS SMALLBUSINESS OWNERS AND OTHER GROUPS WHOSE EMPLOYERS DON'T PROVIDE PENSION PLANS AGENTS FOR MOST INSURERS SELL PRIVATE PENSION PLANS MOST SAY THEY ARE CAREFUL TO TELL CUSTOMERS THEY ARE SELLING INSURANCE AND ONLY OFFER IT TO PEOPLE WHO NEED BOTH LIFE INSURANCE AND SAVINGS MET CONCEDES THAT SOME OF ITS AGENTS WENT TOO FAR AND HAS ALREADY OFFERED REFUNDS TO UP TO 60000 POLICYHOLDERS NURSES AND OTHERS WHO MAY HAVE UNKNOWINGLY BOUGHT LIFE INSURANCE THE COMPANY EXPECTS TO REFUND AS MUCH AS 40 MILLION THE MET LIFE AND NEW YORK LIFE INVESTIGATIONS ARE PENDING INSURANCE DEPARTMENT OFFICIALS SAY THEY AREN'T INVESTIGATING ALLSTATE OR PRUDENTIAL ALL FOUR COMPANIES SAY ANY QUESTIONABLE SALES PRACTICES WITHIN THEIR ORGANIZATIONS AREN'T WIDESPREAD AGENTS HAVE FOUND THAT RENAMING INSURANCE AND STRESSING ITS TAX BENEFITS OVER ITS DEATH BENEFITS IS A SUCCESSFUL SALES TACTIC PEOPLE WHO DON'T WANT INSURANCE WILL BUY A PRIVATE PENSION PLAN' SAID MR DAILY IN ADDITION PEOPLE WHO WOULDN'T TALK TO A LIFE INSURANCE AGENT WILL BUY FROM A FINANCIAL ADVISER WHICH IS WHAT SOME AGENTS WHO SELL PRIVATE PENSION PLANS CALL THEMSELVES ANYTHING IS BETTER THAN CALLING ONESELF A LIFE INSURANCE AGENT IN TERMS OF PUBLIC RELATIONS SAID JAMES HUNT AN ACTUARY WITH THE NATIONAL INSURANCE CONSUMER ORGANIZATION BUT AGENTS WHO FAIL TO IDENTIFY THEMSELVES AS SUCH WHETHER IN MAILINGS OVER THE PHONE OR IN PERSON ARE BREAKING THE LAW SAID JOHN CALAGNA A SPOKESMAN WITH THE NEW YORK INSURANCE DEPARTMENT TO BE SURE LIFE INSURANCE CAN BE AN APPROPRIATE FORM OF SAVINGS BUT IT'S MOST USEFUL FOR PEOPLE WHO NEED FINANCIAL PROTECTION IN CASE OF UNTIMELY DEATH THIS IS SOMETHING PEOPLE USE ALL OVER THE INDUSTRY SAID JULIAN H GOOD JR AN INSURANCE AGENT IN NEW ORLEANS WHO LAST YEAR DELIVERED A SPEECH ON PRIVATE PENSION PLANS TO AN INDUSTRY SALES CONFERENCE IT'S APPROPRIATE IF IT FITS THE CLIENT'S SITUATION MR GOOD WHO HAS BEEN AN AGENT FOR 12 YEARS WITH VARIOUS COMPANIES INCLUDING MUTUAL BENEFIT LIFE INSURANCE CO AND MET LIFE SAYS HE IS SICKENED BY THE ABUSE OF THE CONCEPT IT TURNS MY STOMACH HE SAID THEY WERE EXPLOITING WHAT WAS A GOOD AND EFFECTIVE IDEA MET'S TAMPA OFFICE WAS RUN BY RICK URSO WHO IN 1992 EARNED 946000 SELLING LIFE INSURANCE MR URSO'S SUCCESS WAS NOTICED BY MANAGERS OF OTHER MET OFFICES WHO ASKED MR URSO TO MAKE PRESENTATIONS TO THEIR AGENTS A VIDEOTAPE OF ONE URSO PRESENTATION WAS MAILED TO MET OFFICES ACROSS THE COUNTRY MR URSO HIMSELF WAS FEATURED AS A SUCCESS STORY IN MET'S INTERNAL PUBLICATIONS BUT WHEN STORIES OF THE TAMPA OFFICE INVESTIGATION CAME TO LIGHT SEVERAL WEEKS AGO MR URSO WAS DISMISSED THROUGH HIS ATTORNEY MR URSO DENIES HE DID ANYTHING WRONG AND SAYS HIS SALES METHODS WERE COMMONPLACE AT MET LIFE MET DENIES THE CONTENTION IN THE CASE OF NEW YORK LIFE THE LETTER WAS SENT BY AN AGENT IN TAMPA STEVEN INGRAM NEW YORK LIFE SAYS MR INGRAM SENT THE LETTER WITHOUT ITS AUTHORIZATION AND ADDS THAT MAILINGS WERE HALTED BEFORE ANY SALES RESULTED MR INGRAM WHO STILL WORKS FOR NEW YORK LIFE COULDN'T BE REACHED FOR COMMENT IN RESPONSE TO THE FLORIDA INVESTIGATION NEW YORK LIFE HAS HIRED A LAW FIRM TO INVESTIGATE ITS SALES PRACTICES IN FLORIDA PRUDENTIAL SAYS THE AGENT WHO SENT ITS LETTER RONALD SCHRAM WHO WORKED IN PITTSBURGH IS NO LONGER WITH THE COMPANY AND THAT MR SCHRAM VIOLATED COMPANY RULES BY SENDING A LETTER NOT APPROVED BY THE HOME OFFICE IN NEWARK MR SCHRAM DECLINED COMMENT THE ALLSTATE LETTER WAS WRITTEN BY TAMPA AGENT JESSE HILL MR HILL WHO IS STILL EMPLOYED WITH ALLSTATE DIDN'T RETURN PHONE CALLS FOR COMMENT ALLSTATE SAID ABOUT 300 OF THE LETTERS WERE SENT OUT AND THAT MR HILL VIOLATED COMPANY RULES BY SENDING A LETTER NOT APPROVED BY HEADQUARTERS NURSES GUARANTEED RETIREMENT SAVINGS PLAN YOUR PRESENT NURSING POSITION YOU WILL NOT LOSE YOUR RETIREMENT BENEFITS METROPOLITAN SHOULD YOU BECOME DISABLED NURSE'S INDIVIDUAL RETIREMENT PLAN RETIREMENT PROGRAM WITH YOU TO HELP YOU REACH YOUR FINANCIAL GOALS MAKE YOUR DEPOSITS FOR YOU NURSES INSURED RETIREMENT PLAN PROGRAM CAN STAY WITH YOU TO HELP YOU REACH YOUR RETIREMENT GOALS BY ALLSTATE SHOULD YOU BECOME DISABLED NURSES INSURED RETIREMENT PLAN CAN STAY WITH YOU TO HELP YOU REACH YOUR RETIREMENT GOALS BY PRUDENTIAL SHOULD YOU BECOME DISABLED 9401060047 940106 TECHNOLOGY BRIEF COMPUSERVE INC TYPE FONTS DOWNLOADING ARE OPTIONS FOR SUBSCRIBERS COMPUSERVE INC COLUMBUS OHIO SAID SUBSCRIBERS TO THE ONLINE COMPUTER SERVICE CAN BUY TYPE FONTS AND DOWNLOAD THEM DIRECTLY TO THEIR COMPUTERS THE NEW ITC FONT LIBRARY PROVIDED BY FONTHAUS INC OF FAIRFIELD CONN IS AVAILABLE ON COMPUSERVE THROUGH DTP ONLINE WHICH OFFERS PRODUCTS AND SERVICES FOR DESKTOP PUBLISHING THE H&R BLOCK INC UNIT SAID THE DESKTOPPUBLISHING SERVICE LAUNCHED LAST WEEK WOULD ALSO INCLUDE CLIP ART AND PHOTOS IN THE COMING MONTHS OTHER ONLINE COMPUTER SERVICES SUCH AS AMERICA ONLINE INC ALSO OFFER FONTS AND CLIP ART TO THEIR CUSTOMERS ACCESS TO DTP ONLINE WILL COST 8 PER HOUR OR 16 PER HOUR FOR FASTER CONNECTIONS IN ADDITION TO THE BASIC MONTHLY 895 CHARGE FOR COMPUSERVE MEMBERS THE TYPE FONTS WHICH ARE NOW AVAILABLE ONLY FOR THE MACINTOSH WILL COST 29 EACH FONTS FOR WINDOWS PROGRAMS WILL SOON BE AVAILABLE THE COMPANY SAID 9401060046 940106 BUSINESS BRIEF SYNOPSYS INC COMPANY PLANS STOCK DEAL TO ACQUIRE LOGIC MODELING SYNOPSYS INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE CLOSELY HELD LOGIC MODELING CORP OF BEAVERTON ORE FOR 26 MILLION SHARES OF STOCK SYNOPSIS SHARES CLOSED AT 4250 YESTERDAY GIVING THE TRANSACTION AN INDICATED VALUE OF 1105 MILLION THE TAXFREE TRANSACTION WILL BE ACCOUNTED FOR AS A POOLING OF INTEREST SYNOPSYS BASED IN MOUNTAIN VIEW CALIF HAD 323 MILLION IN REVENUE FOR THE NINE MONTHS ENDED SEPT 30 IT DEVELOPS HIGHLEVEL DESIGN AUTOMATION SOFTWARE USED TO MAKE INTEGRATED CIRCUITS AND ELECTRONICS SYSTEMS LOGIC MODELING WITH 238 EMPLOYEES AND 1993 REVENUE OF 37 MILLION DEVELOPS SIMULATION MODELS THAT HELP ENGINEERS VERIFY THAT ELECTRONIC DESIGNS WORK 9401060045 940106 REVIEW & OUTLOOK EDITORIAL THE GUNS OF CLINTON THERE WAS AN IMPORTANT GUN CONTROL LESSON MISSED DURING PRESIDENT CLINTON'S RECENT BIRDSHOOTING TRIP TO MARYLAND'S EASTERN SHORE THE PRESIDENT USED A BORROWED BENELLI M1 SUPER 90 FIELD AUTO SHOTGUN TO BAG HIS QUARRY THAT'S A VERY HANDSOME UPSCALE ITALIAN SHOTGUN POPULAR AMONG COLLECTORS AND PERFECTLY LEGAL BUT UNDER SENATOR DIANNE FEINSTEIN'S ASSAULT WEAPONS LEGISLATION PASSED IN THE SENATE LAST YEAR THE PRESIDENT COULD HAVE FOUND HIMSELF ON THE WRONG SIDE OF THE LAW HOW BY MERELY MAKING COSMETIC CHANGES TO THE GUN FOR EXAMPLE IF THE PRESIDENT HAD USED A BENELLI ALTERED WITH A COLLAPSIBLE STOCK AND A PISTOL GRIP HE'D HAVE TRIPPED OVER TWO OF THE FEINSTEIN AMENDMENT CRITERIA THAT MAKE A PREVIOUSLY LEGAL AUTOMATIC SHOTGUN ILLEGAL A COLLAPSIBLE STOCK IS TYPICALLY A LIGHT ALLOY OR PLASTIC FRAME MUCH LIGHTER THAN THE SOLID WOODEN STOCKS TRADITIONAL WITH MOST SHOTGUNS THE COLLAPSIBLE STOCK MAKES THE GUN LIGHTER EASIER TO LUG THROUGH THE WOODS AND HELPS THE SHOOTER FOLLOW THROUGH WITH HIS SWINGING MOTION WHEN TRACKING THE FLIGHT OF SAY MR CLINTON'S BIRD ADD TO THIS A PISTOL GRIP WHICH SOME BIRD SHOOTERS BELIEVE GIVES THEM MORE CONTROL AND THE SHOTGUN IS ILLEGAL IN SHORT IF MR CLINTON'S SHOTGUN HAD THESE ACCESSORIES ADDED WHICH HAVE NOTHING TO DO WITH THE FIREPOWER OF THE SHOTGUN IT WOULD BE BANNED BUT AN UNALTERED VERSION OF THE BENELLI WHICH FIRES THE SAME SLUG AT THE SAME VELOCITY AT THE SAME RATE WOULD REMAIN LEGAL IT SHOULD ALSO BE NOTED THAT THE TERM AUTOMATIC REFERS TO THE LOADING MECHANISM NOT THE FIRING MECHANISM IN FACT MUCH GUN CONTROL LEGISLATION IS BASED ON APPEARANCE RATHER THAN FUNCTION AS DESCRIBED NEARBY BY JAMES BOVARD TAKE SENATOR FEINSTEIN'S HOME STATE OF CALIFORNIA UNDER THAT STATE'S MUCH CELEBRATED ASSAULT WEAPONS BAN THE COLT AR15 IS DEEMED ILLEGAL BUT THE RUGER MINI14 REMAINS LEGAL BOTH WEAPONS FIRE THE 556MM NATO ROUND BOTH COME STANDARD WITH A FIVEROUND CLIP BUT MAGAZINES OF UP TO 50 ROUNDS ARE READILY AND LEGALLY AVAILABLE FOR BOTH BOTH GUNS ARE SEMIAUTOMATICS WHICH SIMPLY MEANS THEY CAN BE FIRED ONLY AS FAST AS THE OPERATOR CAN PULL THE TRIGGER NOT FULLY AUTOMATIC AUTOMATIC WEAPONS OF ANY KIND HAVE BEEN ILLEGAL IN THIS COUNTRY SINCE 1934 ALSO READILY AND LEGALLY AVAILABLE FOR BOTH THE COLT AND THE RUGER ARE VARIOUS PARAMILITARY ACCESSORIES SUCH AS FLASH SUPPRESSORS FOLDING STOCKS TRIPODS BIPODS YOU NAME IT SO WITH SO MUCH IN COMMON WHY IS THE AR15 ILLEGAL AND THE MINI14 LEGAL LOOKS THE AR15 COMES WITH A PISTOL GRIP AND HAS A BLACK PLASTIC STOCK GIVING IT A MILITARY LOOK MUCH LIKE THE M16 THE RUGER ON THE OTHER HAND HAS A TRADITIONAL WOODEN STOCK THE REAL POINT HERE BEARS ON THE WAY LIBERALS TYPICALLY THINK ABOUT A PROBLEM SUCH AS VIOLENT CRIME THEY'LL TURN THEMSELVES INSIDE OUT TO GET A GUN BAN WHICH IN FACT IS LIKELY TO HAVE MINIMAL IMPACT ON THE PROBLEM IT'S SUPPOSEDLY GOING TO REMEDY BUT NO WAY WILL THEIR TORTURED POLITICS ALLOW THEM TO THEN DEVOTE THE SAME FEROCIOUS ENERGY TO TOUGHENING THE LAUGHABLE JUVENILE JUSTICE SYSTEM OR UNWRAPPING THE BUREAUCRACY AND PROCEDURALISM WITH WHICH THEY'VE STRANGLED COURTS AND CRIMINAL JUSTICE AGENCIES AS TO MR CLINTON AND HIS FELLOW SHOTGUNNERS WE WOULDN'T BE TOO SURPRISED IF THE FIRST PEOPLE ARRESTED UNDER THE FEINSTEIN PROVISIONS ARE SHOOTERS SITTING IN BLINDS IN DESOLATE SNOWY MARSHES RATHER THAN THE GUN CUSTOMIZERS RUNNING AROUND SENATOR FEINSTEIN'S BAN ON THE STREETS OF OUR CITIES 9401060044 940106 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE CHINESE YUAN'S DEVALUATION RESULTING FROM UNIFICATION OF CURRENCY EXCHANGE RATES PROMPTED HIGHER AIR FARES FOR FOREIGNERS USING THE COUNTRY'S AIRLINES CHINA'S NEW DUAL FARE SYSTEM FOR CHINESE AND FOREIGN TRAVELERS WILL HELP MAKE UP FOR REVENUES THAT WOULD BE LOST BECAUSE OF LAST SUNDAY'S DEVALUATION IN WHICH THE YUAN FELL 33 AGAINST THE DOLLAR FOR FOREIGNERS FLYING FROM BEIJING PRICES JUMPED ABOUT 50 TO 254 FOR A TICKET TO GUANGZHOU AND TO 153 TO SHANGHAI AND TO 800 FOR A BEIJINGTOKYO FLIGHT FARES FOR CHINESE TRAVELERS REMAIN UNCHANGED SEPARATE TICKET WINDOWS FOR FOREIGNERS ALSO WILL BE MAINTAINED MAJOR WESTERN HOTELS IN THE CAPITAL ALSO WERE RAISING THEIR RATES IN AN EFFORT TO OFFSET EFFECTS OF THE DEVALUATION A JAPANESE OIL REFINER PLANS TO BUILD THE COUNTRY'S FIRST SELFSERVICE GASOLINE STATIONS JAPAN ENERGY CORP EXPECTS TO INTRODUCE THE STATIONS BY MID1995 THE INDUSTRIAL DAILY NIKKEI SANGYO SHIMBUN REPORTED NOW ONLY LICENSED PEOPLE MAY HANDLE PETROLEUM PRODUCTS IN JAPAN BUT THIS RESTRICTION WILL BE EASED UNDER THE GOVERNMENT'S DEREGULATION PROGRAM OPENING THE WAY FOR SELFSERVICE THE PUBLIC HAS BEEN INCREASINGLY CRITICAL OF HIGH PRICES FOR PETROLEUM PRODUCTS AMID JAPAN'S PROLONGED RECESSION JAPAN ENERGY'S NEW STATIONS WOULD BE TWICE AS LARGE AS ITS CURRENT OUTLETS BUT REQUIRE FEWER WORKERS CHINESE RAILWAYS LAST YEAR TRANSPORTED A RECORD 156 BILLION TONS OF FREIGHT UP 28 FROM A YEAR EARLIER THE OFFICIAL CHINA DAILY SAID BUT THE INCREASE FELL FAR SHORT OF THE DEMAND FOR CARGO SPACE GENERATED BY CHINA'S 13 ECONOMIC GROWTH IN 1993 AND FREIGHT SHIPMENTS REMAINED BACKED UP FOR WEEKS AND EVEN MONTHS PASSENGER TRAFFIC ON TRAINS CLIMBED 85 TO 105 BILLION THE GOVERNMENT SAID IT SPENT 383 BILLION BUILDING RAIL LINES LAST YEAR WHEN EARNINGS ROSE 14 TO 931 BILLION FROM 1992 MOST TOURISTS FROM ABROAD SURVEYED BY BRITAIN'S TOURIST AGENCY COMPLAINED THAT LONDON IS OVERPRICED MORE THAN HALF THE VISITORS CHARACTERIZED HOTEL RATES AND STORE RESTAURANT AND THEATER PRICES AS EXPENSIVE OR VERY EXPENSIVE BUT THE FINDINGS REPRESENTED AN IMPROVEMENT FROM THE PREVIOUS YEAR PARTLY BECAUSE THE BRITISH POUND'S VALUE FELL AGAINST MAJOR FOREIGN CURRENCIES IN LATE 1992 LAST YEAR TOURISTS MOST COMMONLY USED THE SUBWAY TO GET AROUND THE CAPITAL A 68MILE UNDERGROUND EXPRESSWAY WILL BE BUILT IN CENTRAL TOKYO AIMED AT EASING TRAFFIC CONGESTION CONSTRUCTION IN THE 746 BILLION PROJECT IS TO BEGIN NEXT YEAR OFFICIALS SAID LAND PURCHASES WILL ACCOUNT FOR HALF THE COST AS PROPERTY RIGHTS EXTEND BELOW THE SURFACE A FOURTH OF THE LAND HAS BEEN ACQUIRED SO FAR THE TUNNEL WILL PASS THROUGH BUSINESS AND SHOPPING DISTRICTS IN A HEAVILY POPULATED AREA CRISSCROSSED BY UTILITY LINES RIVERS AND SUBWAYS COMPLICATING CONSTRUCTION RIOTS BROKE OUT IN YEMEN AS HUNDREDS OF RESIDENTS PROTESTED HIGH PRICES AND A SHARP DROP IN THE VALUE OF THE RIAL CURRENCY THE GOVERNMENT DEPLOYED TROOPS WHO QUELLED THE PROTESTS IN THE CAPITAL OF SANAA AND THE CITY OF TAIZZ 160 MILES TO THE SOUTH THE GOVERNMENT HAS INTRODUCED ECONOMIC REFORMS SINCE NORTH AND SOUTH YEMEN UNITED IN MAY 1990 BUT THE COUNTRY IS ONE OF THE POOREST IN THE REGION ANNUAL INFLATION IS RUNNING AT 100 AND THE RIAL HAS BEEN DROPPING SHARPLY ONE US DOLLAR BOUGHT 75 RIALS YESTERDAY COMPARED WITH 56 RIALS 10 DAYS AGO THE OFFICIAL EXCHANGE RATE IS 12 TO THE DOLLAR VIETNAM SAID IT SLASHED ITS 1993 INFLATION TO 52 FROM 175 IN 1992 THE RATE HAD SOARED AS HIGH AS 500 IN THE MID1980S WHEN HUGE BUDGET DEFICITS WERE FUNDED BY UNFETTERED PRINTING OF MONEY THE 1993 PACE WAS 4 THROUGH NOVEMBER BUT FOOD PRICES SWELLED LAST MONTH JUMPING 10 IN THE CAPITAL OF HANOI THE LATE PICKUP WAS ATTRIBUTED TO A CONSUMERSPENDING SPLURGE AHEAD OF THE LUNAR NEW YEAR FESTIVAL A MAJOR HOLIDAY ON FEB 10 IN ITS TRANSITION TO FREE MARKETS BEGUN IN LATE 1986 VIETNAM HAS REINED IN INFLATION BY STOPPING SUBSIDIES OF THE DEFICIT CONTROLLING CREDIT AND ADJUSTING INTEREST RATES TO MORE REALISTIC LEVELS SEPARATELY THE GOVERNMENT SAID FOOD PRODUCTION LAST YEAR ROSE 33 TO 25 MILLION TONS CITING ECONOMIC REFORMS UPGRADED IRRIGATION SYSTEMS AND GOOD WEATHER VIETNAM WHICH ONCE HAD FOOD DEFICITS HAS BECOME A LEADING RICE EXPORTER FARM EXPORTS TOTALED 791 MILLION IN 1993 UNDER NEW ANTINOISE LAWS IN BRITAIN AUTHORITIES MAY QUICKLY SILENCE BUSKERS IN RESPONSE TO COMPLAINTS THAT THE STREET ENTERTAINERS ARE TOO LOUD AND MAY TOW AWAY OR BREAK INTO CARS TO TURN OFF UNHEEDED ALARMS EIGHTEEN MALAYSIAN GROUPS RANGING FROM INTELLECTUALS TO BUSINESS PEOPLE AND LAWYERS FAULTED A GOVERNMENT DECISION TO LET COLLEGES AND UNIVERSITIES TEACH TECHNICAL SUBJECTS IN ENGLISH DISCONTINUED IN 1980 AS A VESTIGE OF BRITISH COLONIALISM THE GROUPS WANT INSTRUCTION TO CONTINUE IN THE MALAY LANGUAGE 9401060043 940106 POLITICS & POLICY TELECOMMUNICATIONS BILL OPEN TO CHANGE US SAYS WASHINGTON THE CLINTON ADMINISTRATION SAID THAT IT HAS GRAPPLED WITH BROAD QUESTIONS IN DRAFTING A BILL TO ELIMINATE BARRIERS TO TELECOMMUNICATIONS COMPETITION AND THAT THE ADMINISTRATION'S PLAN WILL REMAIN OPEN TO CHANGE IN A MEETING WITH TELEPHONE AND CABLE EXECUTIVES AND CONSUMER ACTIVISTS VICE PRESIDENT AL GORE AND COMMERCE SECRETARY RONALD BROWN SAID THE ADMINISTRATION IS STILL PUSHING TO FILE A BILL SOON TO FREE UP COMPETITION PARTICIPANTS SAID HOUSE LEADERS PLAN TO START HEARINGS LATER THIS MONTH ON TWO BILLS FREEING CABLE LONGDISTANCE AND BABY BELL COMPANIES TO COMPETE WITH ONE ANOTHER AND THE HOUSE ENERGY AND COMMERCE COMMITTEE HAS COMMITTED TO FINISHING ITS WORK ON TELECOMMUNICATIONS REFORM BY MARCH TO TURN TO PRESIDENT CLINTON'S HEALTH PACKAGE A TOP ADMINISTRATION OFFICIAL INSISTED THE WHITE HOUSE HADN'T FALLEN BEHIND SCHEDULE IN ITS YEARLONG EFFORT TO PROMOTE INVESTMENT IN FIBEROPTIC NETWORKS CARRYING VOICE VIDEO AND INFORMATION MR GORE HAS SCHEDULED TWO MORE MEETINGS SIMILAR TO YESTERDAY'S AND MR BROWN IS EXPECTED TO ANNOUNCE TODAY THE FORMATION OF A COMMITTEE OF INDUSTRY EXECUTIVES AND PUBLICINTEREST GROUPS TO CONTINUE ADVISING THE ADMINISTRATION 9401060042 940106 COMMODITIES OIL FUTURES SOAR IN ANTICIPATION OF GLOBAL PUSH FROM PRODUCERS TO CUT OUTPUT PROP UP PRICES BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL OIL PRICES SOARED AS TRADERS ANTICIPATED A GROWING MOVEMENT BY GLOBAL OIL PRODUCERS TO PARE BACK OUTPUT IN ORDER TO PROP UP PRICES REPORTS THAT OIL MINISTERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ARE DISCUSSING PLANS TO MEET LATER THIS MONTH OR DURING EARLY FEBRUARY HAVE BUOYED PRICES THE GROUP WAS SCHEDULED TO MEET IN MARCH BUT DETERIORATING OIL PRICES COULD BRING THEM TOGETHER SOONER CONCERN THAT PRICES WILL REMAIN SOFT THROUGH THE FIRST QUARTER HISTORICALLY THE STRONGEST MARKETING PERIOD OF THE YEAR IS MAKING OIL MINISTERS JUMPY IN ADDITION SAID ALSHANFARI THE OIL MINISTER OF OMAN WILL CONTINUE HIS TOUR OF NONOPEC PRODUCERS IN AN EFFORT TO ELICIT PROMISES FROM THEM TO CUT BACK THEIR OIL PRODUCTION OIL PRICES WERE ALSO SUPPORTED BY REPORTS THAT KUWAIT A POWERFUL MEMBER OF OPEC WAS CONSIDERING A PLAN TO CLOSE DOWN CERTAIN OIL FIELDS IF THE COSTS TO RUN THEM EXCEEDED THE PRICE OF OIL CRUDE OIL FOR FEBRUARY DELIVERY ROSE BY 67 CENTS A BARREL TO FINISH AT 1534 THE FIRST TIME THAT OIL PRICES HAVE BREACHED 15 A BARREL SINCE EARLY DECEMBER HEATING OIL AND GASOLINE PRICES ALSO JUMPED BUT MARKET PARTICIPANTS REMAIN SKEPTICAL ABOUT WHETHER MARKET FUNDAMENTALS HAVE REALLY CHANGED ENOUGH TO SUPPORT YESTERDAY'S PRICE RALLY THE OMANI EFFORT HASN'T RESULTED IN ANY SUBSTANTIVE PROMISES TO HOLD BACK OUTPUT AND STATEMENTS FROM KUWAIT WERE SEEN BY OIL INDUSTRY EXPERTS AS NOTHING MORE THAN EMPTY PROMISES BECAUSE THE COST OF PRODUCING OIL IN THAT TINY PERSIAN GULF COUNTRY DOESN'T RUN MORE THAN 2 A BARREL THAT MARKET PARTICIPANTS PURCHASED OIL CONTRACTS ON THOSE REPORTS REFLECTS A HIGH LEVEL OF NERVOUSNESS WITHIN THE MARKET SAYS MICHAEL ROTHMAN SENIOR ENERGYFUTURES ANALYST FOR MERRILL LYNCH MR ROTHMAN AND OTHER ANALYSTS BELIEVE YESTERDAY'S RALLY MIGHT PROVE TRANSITORY AND DATA RELEASED BY THE AMERICAN PETROLEUM INSTITUTE LATE YESTERDAY WILL PLAY A MAJOR ROLE IN PRICE DIRECTION TODAY THEY SAY THE INSTITUTE REPORTED THAT US CRUDEOIL INVENTORIES FELL BY 66 MILLION BARRELS TO 3418 MILLION BARRELS PRODUCT INVENTORIES HOWEVER UNEXPECTEDLY ROSE WITH DISTILLATE OR HEATING OIL STOCKS GROWING BY 22 MILLION BARRELS TO 1447 MILLION BARRELS GASOLINE SUPPLIES GREW BY 300000 BARRELS TO 225 MILLION BARRELS REFINERY OUTPUT ALSO GREW BUT SOME ANALYSTS POINT OUT THAT THIS INCREASE MAY ULTIMATELY BE MILDLY BULLISH REFLECTING A LASTMINUTE PUSH TO PRODUCE BEFORE A NUMBER OF REFINERIES SHUT DOWN UNITS FOR SEASONAL MAINTENANCE FOR INSTANCE AFTER TRADING YESTERDAY THE US UNIT OF BRITISH PETROLEUM BASED IN CLEVELAND REPORTED THAT ITS HUGE REFINERY IN LOUISIANA WOULD BE SHUT DOWN DURING FEBRUARY FOR 42 DAYS FOR MAINTENANCE PURPOSES IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS FUTURES PRICES FELL FOLLOWING THE LEAD OF SILVER WHOSE PRICE WAS SWAMPED BY PROFITTAKING AT NEW YORK'S COMMODITY EXCHANGE SILVER FOR MARCH DELIVERY WAS DOWN 145 CENTS TO 5085 AN OUNCE WHILE THE PRICE OF THE FEBRUARY GOLD FUTURES CONTRACT FELL 3 TO 39210 AN OUNCE SOME ANALYSTS EXPRESSED SURPRISE THAT PRECIOUSMETALS PRICES WERE FALLING AS CRUDE OIL PRICES ROSE GENERALLY CRUDE AND METALS PRICES MOVE IN TANDEM BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INC THEORIZED THAT ONE REASON FOR THE CHANGE MAY BE THE TRADING ACTIVITY OF MIDDLE EASTERN INVESTOR SYNDICATES MANY MIDDLE EASTERN BUYERS HAVE BOUGHT SILVER AS A HEDGE AGAINST POSSIBLE DEVALUATION OF THEIR CURRENCY THE RIYAL WHICH MIGHT OCCUR IF OIL PRICES STAY DOWN MR SAVAIKO SAID BUT WITH OIL PRICES RISING THAT COULD STAVE OFF A DEVALUATION OF THE CURRENCY AND EASING OF THE DEVALUATION FEARS COULD PROMPT PROFITTAKING IN THE SILVER MARKET OTHER BIG PLAYERS INCLUDING COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY ALSO HELPED TO DRIVE METALS PRICES LOWER YESTERDAY BY SELLING AGGRESSIVELY ANALYSTS SAID GRAINS THE WHEAT FUTURES CONTRACT FOR MARCH DELIVERY AT THE CHICAGO BOARD OF TRADE ROSE BECAUSE THE AGRICULTURE DEPARTMENT CONFIRMED CHINA BOUGHT 299 MILLION BUSHELS OF SUBSIDIZED US WHEAT THE MARCH CONTRACT ROSE 475 CENTS A BUSHEL TO SETTLE AT A LIFEOFCONTRACT HIGH OF 3855 A BUSHEL GRAIN TRADERS SAID YESTERDAY THAT CHINA IS INTERESTED IN BUYING AN ADDITIONAL 105 MILLION BUSHELS WHEAT PRICES HAD CLIMBED EARLIER THIS WEEK ON SPECULATION CHINA WOULD BUY A TOTAL OF 404 MILLION BUSHELS OF US WHEAT PRICES OF CORN FUTURES PRICES SETTLED MIXED AS TRADERS EVENED THEIR POSITIONS IN ANTICIPATION OF A HARVEST REPORT DUE WEDNESDAY FROM THE US AGRICULTURE DEPARTMENT MOST TRADERS EXPECT THE GOVERNMENT TO LOWER ITS TWOMONTHOLD ESTIMATE OF THE 1993 CORN HARVEST THE DEPARTMENT SAID IN NOVEMBER THAT EXCESSIVE RAIN AND FLOODING PROBABLY SHRUNK THE US CORN HARVEST BY 31 TO 65 BILLION BUSHELS FROM THE RECORD 948 BILLION BUSHELS HARVESTED IN 1992 TRADERS SAID YESTERDAY THAT SPARKS COS A WIDELY FOLLOWED MEMPHIS TENN FORECASTING CONCERN TOLD CLIENTS THAT CORN FARMERS HARVESTED 632 BILLION BUSHELS 9401060041 940106 BUSINESS BRIEF BALL CORP COMPANY LOWERS OUTLOOK FOR 4TH PERIOD PLANT TO SHUT BALL CORP SAID ITS EARNINGS FOR THE FOURTH QUARTER ARE EXPECTED TO BE WELL BELOW CURRENT ANALYSTS' MEAN ESTIMATES OF 26 CENTS A SHARE SEPARATELY THE MUNCIE IND MAKER OF METAL AND GLASS CONTAINERS SAID THAT ON APRIL 6 IT WILL CLOSE ITS ASHEVILLE NC GLASSCONTAINER PLANT CUTTING 300 JOBS THE COMPANY SAID THE LOWER FOURTHQUARTER RESULTS ARE LIKELY BECAUSE OF SOFT SALES OF FOOD CANS AND GLASS CONTAINERS AND DOWNTIME TAKEN IN ITS GLASS OPERATIONS TO REDUCE EXCESS INVENTORIES IN THE 1992 FOURTH QUARTER BALL EARNED 116 MILLION OR 39 CENTS A SHARE BALL SAID IT WILL TAKE A CHARGE ASSOCIATED WITH THE PLANT CLOSING BUT THE AMOUNT HASN'T BEEN DETERMINED YET THE COMPANY ALSO SAID IT IS PLANNING TO CLOSE ITS AUGUSTA WIS FOOD CAN PLANT IN MID1994 AS A PART OF THE CONTINUING CONSOLIDATION OF HEEKIN CAN INTO BALL'S NORTH AMERICAN METAL PACKAGING ORGANIZATION 9401060040 940106 BUSINESS BRIEF PS GROUP INC FIRM ISN'T ABLE TO COMPLETE SALE OF SUBSIDIARY TO GROUP PS GROUP INC SAID IT WASN'T ABLE TO REACH A DEFINITIVE AGREEMENT TO SELL AN 85 STAKE IN USTRAVEL SYSTEMS FOR 46 MILLION TO A GROUP CONTROLLED BY THE PRITZKER FAMILY WHICH ALREADY OWNS 15 OF THE TRAVELMANAGEMENT UNIT THE SAN DIEGO COMPANY HAD INTENDED TO USE PROCEEDS OF THE TRANSACTION WHICH WAS ANNOUNCED LAST NOVEMBER TO PAY DOWN DEBT NOW IT SAYS IT IS PURSUING THE ISSUANCE OF ABOUT 14 MILLION DEBT ON A BOEING 737300 LEASED TO A MAJOR AIRLINE PROCEEDS FROM THIS FINANCING PLUS A COMBINATION OF DEBT ON ITS MAJOR TEXAS OIL PROPERTY SALE OF MARKETABLE SECURITIES AND INTERNAL CASH FLOW ARE EXPECTED TO GENERATE SUFFICIENT FUNDS TO REPAY THE COMPANY'S 23 MILLION IN BANK BORROWINGS THE COMPANY SAID PS GROUP ALSO SAID IT IS IN DISCUSSIONS WITH SEVERAL BANKS ABOUT A NEW CREDIT FACILITY TO PROVIDE COLLATERAL FOR CERTAIN LETTERS OF CREDIT 9401060039 940106 BUSINESS BRIEF ADOBE SYSTEMS INC NET INCOME ALMOST DOUBLED FOR THE FISCAL 4TH QUARTER ADOBE SYSTEMS INC BENEFITING FROM SALES OF NEW SOFTWARE PRODUCTS SAID FISCAL FOURTHQUARTER NET INCOME ALMOST DOUBLED DESPITE SOFT PRICING IN ITS FLAGSHIP ADOBE POSTSCRIPT SOFTWARE NET FOR THE QUARTER ENDED NOV 26 WAS 158 MILLION OR 34 CENTS A SHARE AFTER A 1 MILLION CHARGE FOR THE WRITE OFF OF AN INVESTMENT REVENUE TOTALED 865 MILLION IN THE YEAREARLIER QUARTER THE SOFTWARE CONCERN HAD NET OF 84 MILLION OR 18 CENTS A SHARE AFTER A 6 MILLION CHARGE FOR THE WRITE OFF OF A LIMITED PARTNERSHIP INTEREST REVENUE WAS 707 MILLION FOR ALL OF FISCAL 1993 ADOBE'S NET WAS 57 MILLION OR 122 A SHARE AFTER A GAIN OF 39 MILLION OR FIVE CENTS A SHARE FROM THE SALE OF COMMON STOCK REVENUE TOTALED 3134 MILLION IN FISCAL 1992 NET WAS 436 MILLION OR 94 CENTS A SHARE AFTER CHARGES TOTALING 123 MILLION OR 16 CENTS A SHARE FROM A WRITE OFF OF INCOMPLETE RESEARCH AND DEVELOPMENT PROJECTS ASSOCIATED WITH TWO ACQUISITIONS AND FROM A WRITE OFF OF A REALESTATE PARTNERSHIP REVENUE TOTALED 2659 MILLION 9401060038 940106 BUSINESS BRIEF CALIFORNIA ENERGY CO TWO JOINT VENTURES ARE SET TO PROMOTE GROWTH ABROAD CALIFORNIA ENERGY CO OMAHA NEB SAID IT SIGNED TWO JOINTVENTURE AGREEMENTS TO HELP ITS PUSH TO DEVELOP INTERNATIONAL ENERGY PROJECTS IN ONE AGREEMENT THE ENERGY CONCERN FORMED A VENTURE WITH DISTRAL SA PART OF THE LANCASTER DISTRAL GROUP A BOGOTA COLUMBIA ENGINEERING AND MANUFACTURING CONCERN THE COMPANIES WILL DEVELOP POWER PROJECTS IN CENTRAL AND SOUTH AMERICA AS WELL AS IN THE CARIBBEAN THE SECOND AGREEMENT EXPANDS A LINK WITH CLOSELY HELD MINING AND CONSTRUCTION CONCERN PETER KIEWIT SONS' INC WHICH OWNS 35 OF CALIFORNIA ENERGY THE COMPANIES WILL DEVELOP POWER PROJECTS IN THE PHILIPPINES INDONESIA AND COUNTRIES OUTSIDE THE REGION COVERED BY THE DISTRAL VENTURE BOTH AGREEMENTS HAVE INITIAL THREEYEAR TERMS CALLING FOR EQUAL SHARING OF DEVELOPMENT EXPENSES CALIFORNIA ENERGY WILL HOLD A MINIMUM 50 OF THE EQUITY IN THE PROJECTS AND WILL ACT AS OPERATOR 9401060037 940106 BUSINESS BRIEF INTELLICALL INC CONCERN EXPECTS TO REPORT LOSS FOR QUARTER AND YEAR INTELLICALL INC SAYING TWO FOREIGN ORDERS FOR ITS PAY PHONES HAVE BEEN STUCK IN A TESTING AND CERTIFICATION STAGE ANNOUNCED IT WOULD REPORT LOSSES FOR THE FOURTH QUARTER AND ALL OF 1993 THE NEWS SENT THE DALLAS COMPANY'S STOCK SLIDING 50 CENTS OR 55 TO 8625 IN LATE NEW YORK STOCK EXCHANGE TRADING INTELLICALL SAID THE DELAYS KEPT IT FROM SHIPPING PHONES TO INDONESIA AND ARGENTINA IN THE FOURTH QUARTER AS PLANNED A COMPANY SPOKESMAN SAID INTELLICALL HAS ORDERS TOTALING 23 MILLION TO DELIVER 21000 PHONES AND RELATED EQUIPMENT TO THE TWO COUNTRIES THE COMPANY SAID IT COULDN'T PREDICT THE TIMING OF THE SHIPMENTS IT ALSO SAID THE QUALITY OF ITS PRODUCTS WASN'T TO BLAME FOR THE DELAYS IN THE FOURTH QUARTER OF 1992 INTELLICALL HAD A LOSS OF 22 MILLION OR 327 A SHARE ON REVENUE OF 288 MILLION THE RESULTS INCLUDED PRETAX CHARGES TOTALING 22 MILLION FOR ALL OF 1992 THE COMPANY HAD A LOSS OF 249 MILLION OR 371 A SHARE ON REVENUE OF 1545 MILLION 9401060036 940106 FOREIGN EXCHANGE DOLLAR ENDS LITTLE CHANGED AGAINST YEN DESPITE SPEECH ABOUT TRADE BY BENTSEN BY XANDER MELLISH AND GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK A MUCHAWAITED SPEECH BY US TREASURY SECRETARY LLOYD BENTSEN ON USJAPAN TRADE DID NOTHING FOR THE DOLLAR WHICH ENDED LITTLE CHANGED AGAINST THE YEN THE MARK MEANWHILE ENDED LOWER WITH MARKET OPINIONS MIXED ABOUT WHETHER TODAY'S BIWEEKLY BUNDESBANK POLICY MEETING WOULD PRODUCE A CUT IN GERMANY'S KEY INTEREST RATES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17395 MARKS UP FROM 17355 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11290 YEN UP A BIT FROM 11270 YEN STERLING WAS TRADING AT 14872 UP FROM 14865 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 11272 YEN AND AT 17413 MARKS MARKETS WERE GEARED UP FOR MR BENTSEN'S SPEECH FROM THE TIME ASIAN TRADING OPENED ANTICIPATING SOME REPLY TO THE DOLLAR'S RECENT APPRECIATION AGAINST THE YEN THE US CURRENCY HIT AN EIGHTMONTH HIGH OF 11355 YEN EARLY WEDNESDAY AND A JAPANESE NEWS SERVICE QUOTED AN UNNAMED JAPANESE OFFICIAL WISHING THE DOLLAR WOULD REACH 115 YEN SOON WHEN MR BENTSEN TOOK THE PODIUM IN WASHINGTON YESTERDAY HE WARNED JAPAN NOT TO PEG ITS ECONOMIC RECOVERY PLANS TO A DEPRECIATION OF ITS CURRENCY ALLOWING THE YEN TO SLIDE IS NOT AN ACCEPTABLE WAY OUT OF RECESSION FOR JAPAN MR BENTSEN SAID ADDING THAT THE US STILL EXPECTS JAPAN TO REDUCE ITS TRADE SURPLUS AND OPEN ITS MARKETS TO FOREIGN GOODS TRADERS SAID MR BENTSEN'S WORDS HAD LESS IMPACT THAN THEY MIGHT HAVE HAD A YEAR AGO WHEN HIS COMMENTS SHOOK THE DOLLAR TO RECORD LOWS THE DIFFERENCE THEY SAID IS IN PART DUE TO THE STRENGTH OF THE US RECOVERY AND THE DEPTH OF JAPAN'S RECESSION HAS LEFT THE MARKET SO INTRACTABLY BULLISH ON THE DOLLAR AGAINST THE YEN THE DOLLAR DIPPED TO ITS INTRADAY LOW OF 11235 YEN IN THE MOMENTS AFTER HEADLINES FROM MR BENTSEN'S SPEECH WERE RELEASED BUT IT WAS BACK AT ITS PRESPEECH LEVELS OF AROUND 11280 YEN WITHIN AN HOUR TRADERS SAID THEY SEE THE DOLLAR TRYING TO CRACK 11350 YEN AGAIN TODAY WITH A RUN AT 115 YEN POSSIBLE WITHIN A WEEK BECAUSE THE FUNDAMENTALS WEIGH IN FAVOR OF THE DOLLAR IT WILL TAKE MORE THAN JAWBONING TO GET THE DOLLAR DOWN SAID DENNIS PETTIT FOREIGNEXCHANGE MANAGER FOR THE LONG TERM CREDIT BANK OF JAPAN IN NEW YORK EARLY LAST YEAR MR BENTSEN AND OTHER US OFFICIALS EXPRESSED A PREFERENCE FOR A WEAKER DOLLAR AS A MEANS TO RAISE THE PRICE OF JAPANESE GOODS OVERSEAS AND THUS CUT JAPAN'S TRADE SURPLUS WITH THE US THOSE STATEMENTS HELPED DRAG THE DOLLAR FROM 12025 YEN ON FEB 17 WHEN MR BENTSEN FIRST BROACHED THE SUBJECT TO A POSTWAR LOW OF 10040 YEN ON AUG 17 MR BENTSEN'S COMMENTS YESTERDAY DID HOWEVER CAUSE A BRIEF DOLLAR SELLOFF THAT TRIPPED TECHNICAL LEVELS FOR STERLING SENDING IT ON A SUDDEN JUMP TO 14898 FROM 14825 AND TO 25911 MARKS FROM 25776 MARKS WITHIN A COUPLE OF HOURS THE POUND HAS BEEN A MARKET FAVORITE LATELY ON A GENERAL SENSE THAT BRITISH FUNDAMENTALS ARE STRONG AND INTEREST RATES THERE ARE SOLID FOR THE TIME BEING THE POUND ALSO BENEFITED FROM A GENERAL MALAISE IN THE MARK WHICH DECLINED AGAINST THE DOLLAR AND ALMOST ALL OF ITS EUROPEAN COUNTERPARTS VAGUE RUMORS OF INSTABILITY IN RUSSIA TO WHICH GERMAN BANKS HAVE MAJOR LOAN EXPOSURE WEIGHED ON THE CURRENCY AS DID CONCERNS THAT TODAY'S BUNDESBANK COUNCIL MEETING MAY PRODUCE CUTS IN BENCHMARK INTEREST RATES 9401060035 940106 INTERNATIONAL BRIEF AEROSPATIALE SA FRENCH COMPANY EXPECTS TO BE OUT OF RED BY 1995 DESPITE AN APALLING YEAR FOR CIVIL AIRCRAFT SALES IN LAST YEAR FRANCE'S AEROSPATIALE SA SAID IT MANAGED TO REDUCE ITS LOSSES SUBSTANTIALLY IN 1993 AND PREDICTED IT WILL BE OUT OF THE RED BY 1995 AT THE LATEST THAT IS A MORE PESSIMISTIC FORECAST THAN AEROSPATIALE CHAIRMAN LOUIS GALLOIS'S AFFIRMATION AT THE PARIS AIR SHOW IN MID1993 THAT HIS GROUP WOULD BREAK EVEN IN 1994 STATECONTROLLED AEROSPATIALE IS STRUGGLING TO RETURN TO PROFITABILITY IN PREPARATION FOR PRIVATIZATION AFTER 1995 AT A NEWS CONFERENCE ON WEDNESDAY MR GALLOIS CAUTIONED THAT A REAL RECOVERY IN THE AEROSPACE SECTOR IS UNLIKELY UNTIL 1996 OR EVEN 1997 NOTING THAT AROUND THE WORLD THERE ARE ABOUT 500 COMMERCIAL AIRCRAFT SITTING WAITING FOR CUSTOMERS OR APPROXIMATELY THE EQUIVALENT OF ONE YEAR'S PRODUCTION BY THE AVIATION INDUSTRY FOR THE FIRST SIX MONTHS OF 1993 AEROSPATIALE REPORTED A NET LOSS OF 870 MILLION FRENCH FRANCS 1474 MILLION PARTLY REFLECTING RESTRUCTURING COSTS RELATED TO STAFF REDUCTIONS 9401060034 940106 BUSINESS BRIEF CINCINNATI MICROWAVE INC COMPANY EXPECTS TO POST STRONG 4THQUARTER PROFIT CINCINNATI MICROWAVE INC EXPECTS TO POST STRONG FOURTHQUARTER PROFIT AND A NARROWER 1993 LOSS JACQUES ROBINSON PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID FOR THE FOURTH QUARTER CINCINNATI MICROWAVE EXPECTS TO REPORT NET INCOME OF 26 MILLION TO 29 MILLION OR 23 CENTS TO 26 CENTS A SHARE COMPARED WITH A LOSS OF 58 MILLION OR 53 CENTS A SHARE A YEAR EARLIER MR ROBINSON SAID FOURTHQUARTER RESULTS INCLUDED A ONETIME GAIN OF ABOUT SIX CENTS A SHARE FROM THE SALE OF LAND HE SAID FOURTHQUARTER SALES ROSE 11 TO 229 MILLION AN INCREASE FUELED BY DEMAND FOR THE COMPANY'S PASSPORT AND ESCORT RADAR DETECTION DEVICES MR ROBINSON SAID CINCINNATI MICROWAVE PRODUCES CORDLESS TELEPHONES AND WIRELESS MODEMS IN ADDITION TO RADAR DETECTION DEVICES CITING A STRONGER THIRD AND FOURTH QUARTER CINCINNATI MICROWAVE EXPECTS TO REPORT THAT ITS 1993 LOSS NARROWED TO 28 MILLION TO 3 MILLION OR 26 CENTS TO 28 CENTS A SHARE FROM A 1992 LOSS OF 64 MILLION OR 59 CENTS A SHARE SALES FOR THE YEAR ROSE ABOUT 14 TO 585 MILLION FROM 513 MILLION 9401060033 940106 GOLDEN WEST PLANS TO DISCUSS A BID FOR CALIFORNIA FED BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL GOLDEN WEST FINANCIAL CORP WILL MEET TODAY WITH THE 10 LARGEST SHAREHOLDERS OF CALIFORNIA FEDERAL BANK TO DISCUSS A TENDER OFFER FOR THE TROUBLED THRIFT EXPECTED TO BE VALUED AT 615 MILLION PEOPLE CLOSE TO THE TALKS SAID THE MEETING TO BE HELD IN NEW YORK COMES AFTER LOS ANGELESBASED CALFED REJECTED RECENT OVERTURES FROM GOLDEN WEST BASED IN OAKLAND CALIF THE 10 SHAREHOLDERS PRIMARILY INSTITUTIONAL INVESTORS HELD MORE THAN HALF OF CALFED'S COMMON STOCK AS OF TWO MONTHS AGO GOLDEN WEST IS EXPECTED TO BID ABOUT 21 A SHARE FOR CALFED'S 25 MILLION COMMON SHARES OUTSTANDING OR 525 MILLION WHICH IS ROUGHLY CALFED'S BOOK VALUE PLUS 90 MILLION FOR CALFED'S PREFERRED STOCK SHARES OF CALFED WHICH CLOSED YESTERDAY AT 14875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING HAVE JUMPED 32 SINCE EARLY NOVEMBER WHEN NEWS OF A POSSIBLE OFFER BEGAN TO SURFACE EDWARD G HARSHFIELD CALFED'S PRESIDENT AND CHIEF EXECUTIVE SAID HE LEARNED ABOUT THE POSSIBILITY OF A GOLDEN WEST TENDER OFFER LATE YESTERDAY HE SAID GOLDEN WEST CHAIRMAN HERBERT M SANDLER APPROACHED HIM IN NOVEMBER TO TALK ABOUT AN OFFER FOR CALFED BUT IN MR HARSHFIELD'S VIEW INDICATED HE WOULDN'T PAY FULL VALUE FOR THE CALFED FRANCHISE I TOLD HIM IT WASN'T APPROPRIATE SAID MR HARSHFIELD WHO WAS NAMED CEO IN OCTOBER AFTER THE BOARD OUSTED THENCHAIRMAN JERRY ST DENNIS AND CEO WILLIAM CALLENDER MR SANDLER AND HIS WIFE MARION WHO IS GOLDEN WEST'S COCHIEF EXECUTIVE OFFICER ARE CREDITED WITH STEERING THE THRIFT SAFELY THROUGH THE SAVINGSANDLOAN CRISIS OF THE 1980S THEY DIDN'T RETURN A PHONE CALL LATE YESTERDAY SEEKING COMMENT AFTER MR SANDLER'S VISIT CALFED RETAINED SMITH BARNEY SHEARSON TO DEFINE A STRATEGY THE COMPANY THEN DECIDED ON A HOLD AND FIX STRATEGY WHICH IT ANNOUNCED YESTERDAY AFTERNOON IT PLANS TO SELL ITS SOUTHEAST DIVISION WHICH INCLUDES 43 BRANCHES WITH TOTAL ASSETS OF 4 BILLION AND TO RAISE 200 MILLION TO 300 MILLION IN NEW CAPITAL BY ISSUING AND SELLING PREFERRED STOCK AND THROUGH A RIGHTS OFFERING MR HARSHFIELD WOULDN'T COMMENT ON CALFED'S RESPONSE TO GOLDEN WEST'S OVERTURES I DON'T KNOW WHAT THEY'RE GOING TO DO AND I DON'T WHAT THE RESPONSE IS GOING TO BE FOR ME HE SAID 9401060032 940106 BUSINESS BRIEF STRUCTURAL DYNAMICS RESEARCH CORP FOURTHQUARTER EARNINGS SEEN TO BE BELOW ESTIMATES STRUCTURAL DYNAMICS RESEARCH CORP SAID IT EXPECTS TO REPORT EARNINGS FOR THE FOURTH QUARTER ENDED DEC 31 TO BE IN THE RANGE OF 14 CENTS TO 15 CENTS A SHARE WHICH IS BELOW ANALYSTS' ESTIMATES OF ABOUT 19 CENTS A SHARE HOWEVER THE COMPANY IN MILFORD OHIO SAID IT EXPECTS TOTAL REVENUE FOR THE QUARTER TO BE ABOUT 54 MILLION A RECORD HIGH FOR THE SOFTWARE MAKER IN THE YEARAGO FOURTH QUARTER STRUCTURAL DYNAMICS EARNED 19 MILLION OR SEVEN CENTS A SHARE ON REVENUE OF 455 MILLION STRUCTURAL DYNAMICS SAID IT EXPECTS TO REPORT RESULTS FOR THE QUARTER ON OR ABOUT JAN 18 THE COMPANY SAID THAT FOR THE QUARTER REVENUE OF ITS SOFTWARE DIVISION JUMPED ABOUT 23 FROM A YEAR AGO TO AN ESTIMATED 49 MILLION THE COMPANY SUPPLIES MECHANICAL DESIGN AUTOMATION SOFTWARE AND ENGINEERING SERVICES USED BY MANUFACTURERS FOR THE DESIGN ANALYSIS TESTING AND MANUFACTURING OF MECHANICAL PRODUCTS 9401060031 940106 MARKETING & MEDIA ADVERTISING SENDING ADS BY FAX IS GROWING DESPITE USUALLY VIOLATING THE LAW BY KEVIN GOLDMAN LAST SUMMER KATE MCKEOWN'S FAX MACHINE IN PERRYOPOLIS PA HUMMED ALONG AT A FEVERISH PITCH HER COMPANY COLD WAR'S OVER GOT ITS HANDS ON ABOUT 40 BEAUTIFULLY TAILORED OFFICER'S GREATCOATS PREVIOUSLY RESERVED FOR THE UPPER ECHELONS OF THE RED ARMY IN RUSSIA TO GET THE WORD OUT MS MCKEOWN FAXED ADS TO ABOUT 1000 COMPANY EXECUTIVES IN COLD CLIMATES SHE AND A GROWING NUMBER OF ENTREPRENEURS HAVE DISCOVERED THE VALUE OF FACSIMILE MACHINES AS A DIRECTMARKETING TOOL THERE'S JUST ONE HITCH IT IS GENERALLY AGAINST THE LAW ACCORDING TO THE TELEPHONE CONSUMERS PROTECTION ACT OF 1991 IT IS ILLEGAL TO TRANSMIT ADS BY FAX UNLESS THE SENDER HAS THE PERMISSION OF THE RECIPIENT THE LAW IS ROUTINELY IGNORED BUT AN ATTORNEY IN PORTLAND ORE CHARLES HINKLE IS TRYING TO HAVE IT OVERTURNED LAST MONTH A FEDERAL MAGISTRATE UPHELD THE LAW AND MR HINKLE APPEALED THE APPEAL IS CURRENTLY BEFORE A DISTRICT JUDGE IN OREGON AND MR HINKLE EXPECTS A RULING WITHIN A MONTH THE RULING BY THE MAGISTRATE MUST BE REVIEWED BY A DISTRICT JUDGE BEFORE IT BECOMES FINAL OPPONENTS OF THE LAW SAY ADVERTISING BY FAX IS A QUICK AND EFFECTIVE WAY TO GET SOMEONE'S ATTENTION SENDING A FAX IS LESS EXPENSIVE THAN MAILING A LETTER THEY SAY AND IT IS HARMLESS IF THE RECEIVER ISN'T INTERESTED HE CAN SIMPLY TOSS THE FAX IN THE TRASH PEOPLE SHOULD BE FREE TO SEND ANY TYPE OF FAX MESSAGE THEY WANT SAYS MR HINKLE WHO IS REPRESENTING FIVE PLAINTIFFS CHALLENGING THE BAN ON FAX ADVERTISING BUT CRITICS COMPLAIN THAT AN UNSOLICITED FAX IS A NUISANCE TO THE RECEIVER TIES UP FAX MACHINES DELAYING IMPORTANT MESSAGES FROM GETTING THROUGH AND COSTS THE RECIPIENT MONEY IN OFFICE SUPPLIES SUCH AS FAX PAPER AND TONER THE CENTER FOR THE STUDY OF COMMERCIALISM IN WASHINGTON DC IS CONSIDERING FILING A SUIT AGAINST A JUNK FAXER SAYS KAREN BROWN ITS RESEARCH DIRECTOR ALTHOUGH THE ORGANIZATION HASN'T DECIDED ON A TARGET FOR THE POTENTIAL LEGAL ACTION YET OF COURSE MAJOR ADVERTISERS SUCH AS PROCTER & GAMBLE OR COCACOLA AREN'T ABOUT TO FAX ADS TO CONSUMERS INSTEAD FAX ADS ARE USED PRIMARILY BY SERVICE BUSINESSES INCLUDING SOME TRAVEL AGENCIES AND HOTELS THERE ARE ABOUT 18 MILLION FAX MACHINES ACCORDING TO DON MCGRATH PRESIDENT OF NATIONAL FAXLIST WHICH COLLECTS AND SELLS FAX TELEPHONE NUMBERS TO COMPANIES INTERESTED IN SOLICITING INDIVIDUALS VIA THE FAX MACHINES NATIONAL FAXLIST HAS A DATABASE OF ABOUT ONE MILLION BUSINESSES AROUND THE COUNTRY A FAX AD WORKS BECAUSE IT HAS A SENSE OF URGENCY AND ISN'T COVERED BY AN ENVELOPE MR MCGRATH SAYS YOU HAVE TO READ IT IN ORDER TO KNOW IF YOU WANT TO THROW IT OUT JIM SMATHERS EXECUTIVE VICE PRESIDENT OF UNITED ENERGY ASSOCIATES RECENTLY SENT FAXES TO 1200 MACHINES IN THE MIDWEST AND 1200 MACHINES IN THE SOUTHEAST ADVERTISING A NEW PRODUCT TO MAKE EXIT SIGN BULBS BURN LONGER MR SMATHERS SAYS HE HAD A 10 RESPONSE RATE HIGHER THAN IF HE HAD SENT THE SAME AD THROUGH THE MAIL I GUESS WE DIDN'T OFFEND ANYBODY HE SAYS BECAUSE NO ONE TOLD US NOT TO DO IT AGAIN BUT PEOPLE INVOLVED WITH FAX ADVERTISING BELIEVE SOME DEGREE OF FORMAL REGULATION IS IN ORDER MR MCGRATH FOR INSTANCE SAYS COMMONSENSE RULES SHOULD PREVAIL SUCH AS ASKING WHETHER ADDITIONAL FAXES ARE WELCOME AFTER THE INITIAL MISSIVE IS SENT EVEN MR SMATHERS BELIEVES ADS SHOULD BE FAXED ONLY TO PEOPLE WHO GIVE THEIR PERMISSION EVEN THOUGH HIS ADS WERE SENT WITHOUT PRIOR APPROVAL I DON'T WANT TO COME INTO MY OFFICE AND FIND MY FAX BASKET FILLED WITH ADS MR SMATHERS SAYS JAMES F LOCK WHO OPERATES A TRAVEL AGENCY IN SPENCER MASS SAYS THAT OUT OF 500 FAXES HE RECEIVED ONLY EIGHT RESPONSES THAT TOLD HIM NOT TO SEND MORE ADS BUT HE NOTES THAT HE SENDS HIS FAXES AFTER NORMAL BUSINESS HOURS TO AVOID ANY DISRUPTIONS THOUGH NOT AFTER 10 PM BECAUSE THE FAX MAY BE IN SOMEONE'S HOUSE MS MCKEOWN THE ENTREPRENEUR WITH THE RED ARMY COATS WITH BUTTONS WITH THE HAMMER AND SICKLE EMBLAZONED ON A STAR EVEN APOLOGIZED IN HER FAX AD I ASK YOU TO FORGIVE THE UNSOLICITED FAX THE FAX LETTER READS IF YOU'D LIKE REPARATION FOR OUR UNINVITED USE OF YOUR FAX CALL OR FAX ME AND I'LL SEND YOU AT MY EXPENSE A SOVIET LENIN ENAMEL PIN MS MCKEOWN IS A BELIEVER IN ADVERTISING THROUGH FAXES OF THE 40 COATS SHE SAYS SHE SOLD 12 FROM RESPONSES TO THE FAXES D'ARCY MASIUS BENTON & BOWLES SAID IT REORGANIZED ITS TWO HISPANIC AD AGENCIES IN THE US AND EIGHT LATIN AMERICAN AGENCIES INTO A SINGLE NETWORK CAPABLE OF CREATING PANAMERICAN AD CAMPAIGNS TARGETING SPANISHSPEAKING CONSUMERS THE NEW NETWORK CALLED DMB&B AMERICAS INCLUDES SOSA BROMLEY AGUILAR & ASSOCIATES OF SAN ANTONIO AND NOBLE & ASSOCIADOS OF IRVINE CALIF AS WELL AS DMB&B OFFICES IN EIGHT OTHER COUNTRIES CLIENTS INCLUDE COCACOLA CO WHICH AT PRESENT RELIES ON SOSA BROMLEY FOR HISPANIC CAMPAIGNS IN THE US LIONEL SOSA CHAIRMAN AND CHIEF EXECUTIVE OF SOSA BROMLEY WAS NAMED CHAIRMAN OF THE NEW NETWORK KEN LAMBERT A DMB&B EXECUTIVE VICE PRESIDENT IN MEXICO WAS NAMED MANAGING DIRECTOR MR SOSA SAID THE AGENCY ACCELERATED PLANS FOR THE NETWORK AFTER THE NORTH AMERICAN FREE TRADE AGREEMENT PASSED ANTICIPATING THAT PANAMERICAN CAMPAIGNS WILL BE IN GREATER DEMAND WHEN CONSUMER GOODS FLOW FREELY BETWEEN THE US AND MEXICO WE BELIEVE AN AD PRODUCED FOR THE US HISPANIC MARKET CAN WORK AS WELL FOR CHILE OR ARGENTINA MR SOSA SAID NOTING THAT MOST OF THE US SHOPS' HISPANIC ADS ARE IN SPANISH SEPARATELY ANOTHER EXECUTIVE OVERSEEING DMB&B'S LATIN AMERICAN ADVERTISING GEORGE A BURNETT IS LEAVING THE AGENCY MR BURNETT SENIOR VICE PRESIDENT IN CHARGE OF DMB&B'S LATIN AMERICAN REGION WAS NAMED GENERAL MANAGER FOR MARKETING COMMUNICATIONS AT AMERICAN TELEPHONE & TELEGRAPH REPORTING TO JOHN NACCHIO PRESIDENT OF AT&T'S CONSUMER LONGDISTANCE UNIT EXLAX SANDOZ PHARMACEUTICALS A UNIT OF SANDOZ CORP TAPPED GREY ADVERTISING NEW YORK TO CREATE ADS FOR EXLAX LAXATIVE PREVIOUSLY AT BLOOM FCA NEW YORK BILLINGS ARE ESTIMATED AT 8 MILLION BLOOM RETAINS SANDOZ'S TAVIST THERAFLU TRIAMINIC AND TRIAMINICIN ACCOUNTS REVIEW CITIZENS FINANCIAL GROUP PROVIDENCE RI SAID IT HAS PUT ITS 5 MILLION ACCOUNT INTO REVIEW THE INCUMBENT PROVIDENCE SHOP DUFFY & SHANLEY IS PARTICIPATING CITIZENS SAID CITIZENS FINANCIAL A UNIT OF THE ROYAL BANK OF SCOTLAND PLC OPERATES CITIZENS BANK IN SOUTHERN NEW ENGLAND STATES AND CITIZENS MORTGAGE CO BASED IN ATLANTA ACQUISITION AGENCY HOLDING COMPANY OMNICOM GROUP SAID IT HAS ACQUIRED WWAV GROUP PLC WITH BILLINGS OF ABOUT 95 MILLION IN DIRECTRESPONSE AND DATABASE MARKETING TERMS OF THE CASH TRANSACTION WEREN'T DISCLOSED OMNICOM SAID IT WOULD MERGE THE UK OPERATIONS OF ITS RAPP COLLINS WORLDWIDE MARKETING UNIT INTO THE WWAV SHOP FORMING A DIRECTRESPONSE AGENCY IN EUROPE WITH 135 MILLION IN BILLINGS 9401060030 940106 KMART TO REVAMP BUSINESS TAKE CHARGE OF 13 BILLION RETAILER TO SELL OFF STAKES IN SPECIALTY DIVISIONS RELOCATE MORE STORES BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL KMART CORP ADMITTING THAT MANY OF ITS DISCOUNT STORES AREN'T BIG ENOUGH TO COMPETE IN TODAY'S FIERCE RETAIL ENVIRONMENT ANNOUNCED A 13 BILLION PRETAX CHARGE MAINLY FOR REPLACING 500 STORES WITH LARGER ONES IN A FURTHER EFFORT TO FOCUS ON ITS CORE DISCOUNT STORES THE NATION'S SECONDLARGEST RETAILER SAID IT PLANS TO SELL TO THE PUBLIC STAKES OF 20 TO 30 IN FOUR SPECIALTY DIVISIONS KMART WILL CREATE FOUR SEPARATE SERIES OF STOCK TIED TO EARNINGS OF EACH DIVISION THE BORDERSWALDEN BOOKSTORE GROUP THE BUILDERS SQUARE HOMEIMPROVEMENT CHAIN THE OFFICEMAX OFFICESUPPLY UNIT AND THE SPORTS AUTHORITY SPORTINGGOODS GROUP THE MOVE WILL ALLOW KMART TO CONTROL THE BUSINESSES BUT LET THEM TRADE SEPARATELY THE TROY MICH RETAILER MADE CLEAR WHY SUCH MAJOR STEPS ARE NECESSARY IT SAID EARNINGS BEFORE SPECIAL CHARGES FOR THE FOURTH QUARTER AND YEAR ENDING JAN 26 WILL BE WELL BELOW YEAREARLIER LEVELS AND DISCLOSED THAT SALES IN THE CRITICAL CHRISTMAS SEASON WERE LOWER THAN EXPECTED ESPECIALLY FOR APPAREL WHERE RECEIPTS WERE FLAT A YEAR EARLIER KMART EARNED 115 A SHARE FOR THE QUARTER AND 206 A SHARE FOR THE YEAR KMART SAID THE FOURTHQUARTER CHARGE WHICH WILL BE 850 MILLION AFTER TAXES WILL RESULT IN A LOSS FOR THE YEAR WHEN COMBINED WITH TWO OTHER CHARGES TOTALING 450 MILLION RELATED TO PLANNED SALES OF TWO OTHER SPECIALTY DIVISIONS IN 1993 KMART POSTED NET INCOME OF 941 MILLION ON SALES OF 377 BILLION THE RETAILER'S LACKLUSTER CHRISTMAS RESULTS FOLLOW THREE CONSECUTIVE QUARTERS OF DECLINING EARNINGS AND FIVE YEARS OF FLAT PERSHARE RESULTS UNDER PRESSURE TO BOLSTER KMART'S STRUGGLING DISCOUNTSTORE OPERATION CHAIRMAN JOSEPH E ANTONINI HAS EMBARKED ON A BROAD RESTRUCTURING PLAN THAT INVOLVES SHARPLY SCALING BACK THE SPECIALTYSTORE OPERATIONS KMART BEGAN ACQUIRING ONLY A FEW YEARS AGO WITH YESTERDAY'S ANNOUNCEMENT KMART OFFICIALS ALSO ACKNOWLEDGED THE NEED TO ALTER GREATLY THE DIRECTION OF THE 35 BILLION STORERENOVATION PLAN UNDER WAY SINCE 1990 FOR THE COMPANY'S 2347 US DISCOUNT STORES THEY NOW HAVE CONCLUDED THAT THEIR BIGGER STORES THOSE WITH 110000 OR MORE SQUARE FEET PERFORM MUCH BETTER THAN THE OLDER 40000TO65000SQUAREFOOT STORES IT IS APPARENT THAT MANY OF THE STORES ORIGINALLY SLATED FOR REFURBISHMENT ARE NOT LARGE ENOUGH TO PROVIDE A STRONG COMPETITIVE VEHICLE FOR THE FUTURE SAID JOSEPH R THOMAS EXECUTIVE VICE PRESIDENT OF US KMART STORES RETAIL ANALYST WALTER LOEB SAID THAT KMART'S DECISION TO CLOSE 500 MORE STORES THAN ORIGINALLY PLANNED AND REPLACE THEM ALL WITH LARGER ONES IS AN ADMISSION THAT IF THEY DIDN'T DO THIS THEY WOULD LOSE SHARE TO OTHER COMPETITORS UNDER THE RENOVATION PROGRAM KMART ALREADY HAS RELOCATED 300 STORES KMART IS ENGAGED IN A FIERCE COMPETITION WITH INDUSTRY LEADER WALMART STORES INC OF BENTONVILLE ARK IN CONTRAST TO KMART'S EXPANSION PROGRAM WHICH MOSTLY INVOLVES RENOVATING OR RELOCATING OLD STORES WALMART IS AGGRESSIVELY BUILDING NEW ONES KMART ALSO FACES COMPETITIVE PRESSURES FROM DEPARTMENT STORES SUCH AS JC PENNEY CO AND SEARS ROEBUCK & CO WHICH HAVE IMPROVED THEIR APPAREL OFFERINGS AND FROM OUTLET MALLS AND CATEGORY KILLERS SUCH AS TOYS R' US INC REACTION TO KMART'S ACTIONS WAS SWIFT ON WALL STREET TRADING IN KMART STOCK WAS HEAVY WITH 37 MILLION SHARES CHANGING HANDS THE STOCK FELL 50 CENTS A SHARE TO 21 NEAR THE 52WEEK LOW OF 1950 AND TWO DEBTRATING SERVICES STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC PUT KMART STOCK ON REVIEW FOR POSSIBLE DOWNGRADE S&P SAID THAT WHILE KMART IS TAKING STEPS TO IMPROVE ITS PROFITABILITY AND COMPETITIVE POSITION THE RATING AGENCY IS CONCERNED THAT THE CORE DISCOUNTSTORE BUSINESS MAY NOT GENERATE SUFFICIENT RETURNS IN THE FUTURE RETAIL ANALYSTS MOSTLY APPLAUDED KMART FOR TAKING ACTIONS TO BOLSTER ITS DISCOUNT STORES BUT SEVERAL MAINTAINED THAT THE RENOVATED STORES WHILE SHARPER AREN'T PERFORMING AS WELL AS EXPECTED AND ARE LOSING MARKET SHARE FOR ITS PART KMART CLAIMS THE STORES THAT FEATURE ITS SOCALLED LOOK OF THE 90S OUTPERFORM OTHER STORES GARNERING 17 MORE SALES AND 12 MORE CUSTOMERS BECAUSE OF KMART'S POOR PROFIT PERFORMANCE IN RECENT YEARS IT'S VERY HARD TO JUMP UP AND DOWN ABOUT ANY MOVES THE COMPANY MAKES IN A POSITIVE DIRECTION SAID MARGO MCGLADE A PAINEWEBBER ANALYST AND VETERAN KMART FOLLOWER EVEN WITH SHINY NEW STORES SHE SAID KMART HAS YET TO PROVE IT CAN RUN THE STORES WELL NEARLY 70 OF THE 13 BILLION CHARGE WILL COVER CLOSING AND RELOCATING THE 500 STORES THE REST WILL COVER KMART'S PLAN ALSO ANNOUNCED YESTERDAY TO MERGE ITS 1232STORE WALDENBOOKS SPECIALTY DIVISION WITH ITS 43STORE BORDERS BOOKS UNIT AND TO CLOSE 187 UNDERPERFORMING WALDENBOOK STORES THE CHARGE ALSO COVERS KMART'S PLAN TO ACCELERATE RENOVATIONS OF ITS BUILDERS SQUARE HOMEIMPROVEMENT STORES MANY ANALYSTS THINK KMART ERRED WHEN IT STARTED BUYING SPECIALTY STORES IN THE 1980S AFTER MUCH CRITICISM MR ANTONINI ANNOUNCED LATE LAST YEAR THAT KMART WOULD SELL THE UNPROFITABLE PACE MEMBERSHIP WAREHOUSE UNIT TO WALMART AND THE PAYLESS DRUGSTORE OPERATIONS TO A LOS ANGELES INVESTMENT FIRM THE SALE OF MINORITY STAKES IN THE FOUR REMAINING SPECIALTY BUSINESSES IS THE LATEST STEP TO SCALE BACK SPECIALTY OPERATIONS GEORGE MRKONIC HEAD OF KMART'S SPECIALTY RETAILING DIVISION SAID INVESTMENT BANKERS PLACED THE TOTAL MARKET VALUE OF THE FOUR DIVISIONS AT ABOUT 3 BILLION WHICH INDICATES THAT KMART PROBABLY WILL GENERATE 600 MILLION TO 900 MILLION FROM THE OFFERINGS THE COMPANY WHICH WILL CONTINUE TO CARRY THOSE BUSINESSES' EARNINGS ON ITS BOOKS SAID ITS BOARD WILL DETERMINE AT A LATER DATE THE TIMING AND SIZE OF SUCH PUBLIC OFFERINGS AS WELL AS THE SHARE PRICES MR ANTONINI SAID THE OFFERINGS WOULD ENHANCE SHAREHOLDER VALUE AND GIVE KMART GREATER FLEXIBILITY IN RAISING CAPITAL AND STRUCTURING EMPLOYEEINCENTIVE PLANS FOR THE INDIVIDUAL BUSINESSES AS FOR KMART'S CORE DISCOUNT STORES NEW YORK RETAIL CONSULTANT KURT BARNARD SAID THE RETAILER MUST STRENGTHEN ITS APPAREL DEPARTMENTS HE SAID THE COMPANY HASN'T MATCHED THE OUTSTANDING EXPECTATIONS IN APPAREL RAISED BY ITS MUCHTOUTED TELEVISION ADVERTISING CAMPAIGN BEGUN LAST YEAR INDEED MR ANTONINI SAID THAT KMART HAD A DIFFICULT TIME COAXING CUSTOMERS INTO ITS APPAREL DEPARTMENTS THIS CHRISTMAS EVEN DURING CLEARANCE PERIODS IT WAS RATHER AMAZING FOR ME TO SEE HE SAID BLAMING CONSUMERS' PENCHANT ALL YEAR FOR ACQUIRING GOODS FOR THE HOME SLUGGISH CLOTHING SALES HURT FULLYEAR RESULTS HE SAID AS DID A DECLINE IN BUILDERS SQUARE PROFIT CAUSED BY SEVERE WINTER STORMS IN THE FIRST QUARTER AN 87 MILLION OPERATING LOSS AT PACE THROUGH THE FIRST NINEMONTH PERIOD AND HIGHER INTEREST EXPENSE ACTIONS TAKEN BY KMART SINCE 1990 TO BOLSTER ITS CORE DISCOUNTSTORE OPERATIONS FEBRUARY 1990 UNVEILS PLANS TO SPEND 23 BILLION OVER NEXT FIVE YEARS 1 BILLION MORE THAN EARLIER FORECAST TO EXPAND AND RELOCATE MORE STORES THAN PREVIOUSLY PROJECTED AND TO DO IT MORE QUICKLY TOOK A 422 MILLION AFTERTAX 640 MILLION PRETAX CHARGE TO COVER THE COST AUGUST 1991 SELLS 1 BILLION OF A NEW SECURITY TO ENSURE THAT ITS STOREEXPANSION EFFORT ISN'T CRIMPED BY LENDERS' WARINESS TO LEND TO DEVELOPERS MAY 1993 AGREES TO SELL 14 OF ITS AILING PACE MEMBERSHIP WAREHOUSE DIVISION STORES TO RIVAL WALMART STORES INC DISCLOSES IT MIGHT SELL MINORITY INTERESTS IN ONE OR MORE SPECIALTYSTORE CHAINS JUNE 1993 TESTS SUPER KMART STORES WHERE GROCERIES ARE SOLD ALONG WITH GENERAL MERCHANDISE RIVAL WALMART ALREADY HAS 40 SUCH COMBINATION STORES AUGUST 1993 PUTS ITS 560STORE PAYLESS DRUGSTORES UNIT ON THE AUCTION BLOCK IN HOPES OF GETTING AS MUCH AS 1 BILLION FOR IT NOVEMBER 1993 AGREES TO SELL PAYLESS UNIT FOR OVER 1 BILLION TO A LOS ANGELES INVESTMENT FIRM AND ALSO ARRANGES SALE OF 91 MORE PACE WAREHOUSE CLUBS TO WALMART JANUARY 1994 INCREASES TO 800 FROM 300 THE NUMBER OF CORE DISCOUNT STORES IT WILL CLOSE AND RELOCATE AND TO 700 FROM 620 THE NUMBER OF STORE EXPANSIONS SAYS IT INTENDS TO SELL STOCK IN FOUR SPECIALTYSTORE DIVISIONS AND ANNOUNCES AN 850 MILLION AFTERTAX 13 BILLION PRETAX CHARGE 9401060029 940106 OIL LEAKS GLOBAL SPY NETWORKS EAVESDROP ON PROJECTS OF PETROLEUM FIRMS ENGINEER WHO WORE A BUG TO LUNCH HELPED CRACK RING WORKING IN BRITAIN THE DIRTY DOZEN' INSIDE BP BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IT WAS A LUNCHEON FOR THREE AT THE LUXURIOUS INN ON THE PARK ONE WAS AN EXXON CORP ENGINEER THE OTHER TWO MEN HAD A PROPOSITION WOULD THE ENGINEER BE WILLING THEY WANTED TO KNOW TO PERFORM A LITTLE INDUSTRIAL ESPIONAGE IT WOULD BE SIMPLE WHEN EXXON ASKED SUPPLIERS TO PROVIDE NEW EQUIPMENT SUCH AS COMPONENTS FOR PETROCHEMICAL PLANTS PARTS FOR OFFSHORE OIL RIGS OR STEEL PIPE FOR VAST PIPELINE PROJECTS ALL THE ENGINEER HAD TO DO WAS PROVIDE INSIDE INFORMATION WHAT WAS EXXON'S BUDGET FOR THE JOB WHO WERE THE POTENTIAL SUPPLIERS HOW MUCH WERE COMPETITORS BIDDING TO WIN THE CONTRACT IF THE EXXON ENGINEER COULD SUPPLY THAT SORT OF DATA HE WAS TOLD THE OTHER MEN WOULD ACT AS INFORMATION BROKERS SELLING THE INSIDE INFORMATION TO SUPPLIERS IN BRITAIN GERMANY OR JAPAN WHO WERE ANXIOUS TO WIN THE BIDS ONE BROKER AT THE LUNCH MICHAEL SZRAJBER TOLD THE EXXON ENGINEER THAT HE WOULD BE PAID HANDSOMELY FOR HIS INFORMATION AND THAT HIS IDENTITY WOULD BE KEPT SECRET PROTECTED BY CLANDESTINE MEETINGS I NEVER TALK TO PEOPLE AT THE OFFICE EITHER I MEET THEM AFTER OFFICE HOURS OR TALK AT NIGHT YOU KNOW IT'S THE ONLY WAY YOU CAN DO IT MR SZRAJBER SAID THAT LUNCHTIME CONVERSATION RECORDED IN 1990 BY THE EXXON ENGINEER WHO WAS COOPERATING WITH BRITISH POLICE TOUCHED OFF INVESTIGATIONS THAT HAVE UNCOVERED A SERIES OF SPY NETWORKS AROUND THE WORLD THESE NETWORKS US AND BRITISH INVESTIGATORS SAY HAVE PENETRATED MANY OF THE MAJOR INTERNATIONAL OIL COMPANIES INCLUDING THE ROYAL DUTCH/SHELL GROUP BRITISH PETROLEUM CO MOBIL CORP THE MARATHON OIL UNIT OF USX CORP AND STATOIL THE NORWEGIAN GOVERNMENT'S OIL CONCERN THE OIL COMPANIES WON'T COMMENT ON THE RECORD HOWEVER AN INTERNAL BRIEFING PAPER WRITTEN LATE LAST YEAR AT ONE US OIL COMPANY STATES WE ARE NOW AWARE OF THE EXISTENCE OF MANY HIGHLY ORGANIZED SOPHISTICATED NETWORKS OF CORRUPTION OPERATING ON AN INTERNATIONAL SCALE THE DISCOVERY HAS TRIGGERED A HUNT FOR MOLES WITHIN THE BIG OIL COMPANIES IN EUROPE THE US AND ASIA EMPLOYEE PHONE CALLS ARE BEING TRACED SUSPICIOUS TRIPS ARE BEING CHECKED AND COMPANY SECURITY OFFICIALS ARE COMBING THROUGH THE BIDDING PROCESSES FOR CERTAIN CONTRACTS LOOKING FOR MINUTE IRREGULARITIES THAT MIGHT INDICATE A SPY AT WORK IT'S LIKE A JOHN LE CARRE NOVEL SAYS ONE OIL COMPANY SECURITY DIRECTOR BECAUSE PAYMENTS ARE OFTEN CONCEALED IN SWISS OR PANAMANIAN BANKS PROVING THAT A SPY IS AT WORK CAN BE DIFFICULT IN THE US THE FEDERAL BUREAU OF INVESTIGATION HAS BEEN CONDUCTING AN INQUIRY BUT LACKS ENOUGH EVIDENCE FOR INDICTMENTS IN NORWAY POLICE HAVE MADE A FEW ARRESTS IN BRITAIN HOWEVER A TROVE OF DOCUMENTS FOUND IN MR SZRAJBER'S LONDON OFFICE HAS LED TO A SERIES OF INDICTMENTS AND CONVICTIONS INCLUDING THAT OF MR SZRAJBER NAMES OF SOME SUPPLIERS WHO ALLEGEDLY HAVE BOUGHT INSIDE INFORMATION FROM THE BROKERS HAVE ALSO SURFACED INCLUDING TWO PROMINENT JAPANESE TRADING COMPANIES ITOCHU CORP AND MARUBENI CORP AND THYSSEN AG AND MANNESMANN AG BIG GERMAN PRODUCERS OF STEEL AND PIPE WHEN BRITISH POLICE RAIDED THE LONDON OFFICES OF THE TWO JAPANESE FIRMS THEY FOUND NUMEROUS BP INTERNAL DOCUMENTS SOME MARKED CONFIDENTIAL A MARUBENI OFFICIAL WAS ARRESTED AND RELEASED ON POLICE BAIL BUT HE THEN LEFT BRITAIN AND HASN'T RETURNED MARUBENI DECLINES TO COMMENT AN ITOCHU OFFICIAL WAS CHARGED WITH CONSPIRACY TO DEFRAUD BP AND PUT ON TRIAL LAST YEAR BUT EVEN THOUGH HE ADMITTED HE PAID AN INFORMATION BROKER AND GOT BP INTERNAL DOCUMENTS A JURY ACQUITTED HIM IN A STATEMENT ITOCHU SAYS THAT ITS EMPLOYEE HAD NO IDEA THE BP DOCUMENTS WERE CONFIDENTIAL OR OBTAINED ILLEGALLY AND THAT HE DIDN'T ACT IN ANY WAY DETRIMENTAL TO BP IT WAS FOR THESE REASONS WE BELIEVE THAT THE JURY ACQUITTED OUR EMPLOYEE AND CLEARED OUR NAME ITOCHU SAYS THYSSEN HAS ISSUED A STATEMENT THAT THE COMPANY IS NOW AWARE THAT THE PRACTICES OF SOME INDEPENDENT CONSULTANTS HAS BEEN CRITICIZED AND THE USE OF CONSULTANTS IS CURRENTLY UNDER REVIEW BY SENIOR MANAGEMENT MANNESMANN CONCEDES THAT IN ONE CASE THE COMPANY MADE IMPROPER PAYMENTS THE STAKES ARE HUGE EVERY YEAR THE BIG OIL COMPANIES BUY BILLIONS OF DOLLARS OF EQUIPMENT TO PUMP TRANSPORT AND REFINE OIL AND GAS WITH A SINGLE CONTRACT OFTEN WORTH MORE THAN 100 MILLION SOME SUPPLIERS ARE ALL TOO WILLING TO BUY INSIDE INFORMATION IN ORDER TO WIN IF THEY ARE NOT SO WILLING INFORMATION BROKERS PUSH THEM TO BUY IT ACCORDING TO THE BRIEFING PAPER WRITTEN BY THE US OIL COMPANY VENDORS SUPPLIERS AND SUBCONTRACTORS HAVE OFTEN FELT INTIMIDATED BY THESE BROKERS WHO OFTEN PROVIDE CONVINCING EVIDENCE OF THEIR ABILITY TO STEER AN AWARD IN THE DIRECTION THAT SUITS THEM THE DOCUMENT SAYS IF VENDOR A' WILL NOT ENGAGE THEIR SERVICES THEY WILL THREATEN TO REPRESENT VENDOR B' AND ENSURE THAT VENDOR A IS DISADVANTAGED USUALLY AN INFORMATION BROKER CONCENTRATES ON TRYING TO MAKE A DEAL WITH THE VENDOR MOST LIKELY TO WIN SINCE THE INFORMATION BROKER GETS PAID HIS COMMISSION 2 TO 4 OF THE CONTRACT ONLY IF HIS VENDOR GETS THE CONTRACT SOMETIMES A BROKER IN ONE CITY WILL OBTAIN INSIDE INFORMATION AND PASS IT TO A BROKER IN ANOTHER CITY WHO IN TURN PASSES IT TO A SUPPLIER AND THEN THE COMMISSION IS SPLIT US AND BRITISH INVESTIGATORS SAY INFORMATION BROKERS ARE OPERATING IN BOSTON HOUSTON SINGAPORE HONG KONG GENEVA PARIS AND TRIPOLI LIBYA AND ABERDEEN SCOTLAND AS WELL AS LONDON THE SPY NETWORK CAME TO LIGHT ALMOST BY CHANCE WHEN EXXON'S PETROCHEMICAL PLANT IN FAWLEY ENGLAND HAD SOME NEW PROCESSING FACILITIES BUILT PARTLY BY DUTTON ENGINEERING OF BRITAIN A DISPUTE BROKE OUT OVER CONTRACT OVERRUNS TO RESOLVE IT COLIN STUART MANAGING DIRECTOR OF DUTTON INVITED ROBERT WANSTALL AN EXXON ENGINEER TO A PRELIMINARY MEETING AT THE INN ON THE PARK IN LONDON SETTLE THE DISPUTE FOR ABOUT 130000 HE SUGGESTED TO MR WANSTALL AND THE EXXON ENGINEER WOULD GET 10000 FOR HIMSELF MR WANSTALL TOLD HIS SUPERIORS WHO GOT IN TOUCH WITH SECURITY OFFICIALS AT EXXON INTERNATIONAL HEADQUARTERS IN NEW JERSEY WHO INFORMED BRITISH POLICE MR WANSTALL THEN FEIGNED AGREEMENT WITH MR STUART THAT HE WOULD TAKE THE BRIBE THE PAYOFF WAS SCHEDULED FOR JULY 17 1990 AT INN ON THE PARK MR WANSTALL WAS WEARING A CONCEALED TAPE RECORDER AT LUNCH MR WANSTALL WAS HANDED A BROWN ENVELOPE WITH 10000 IN CASH HE WAS ALSO INTRODUCED BY MR STUART TO MR SZRAJBER WHO SAID MR WANSTALL COULD MAKE MUCH BIGGER MONEY IN RETURN FOR INFORMATION ON EXXON CONTRACTS WHAT DO YOU WANT ER ME TO DELIVER TO YOU MR WANSTALL ASKED THING STARTS WITH THE VENDOR'S LIST MR SZRAJBER REPLIED NEXT THING YOU KNOW FIND OUT WHO'S MOST LIKELY TO GET THE JOB ONCE THE BIDS COME IN WE NEED PRICES DELIVERIES COMMERCIAL TERMS ETC THEN KEEP OUR VENDORS INFORMED PUT THEM IN THE NUMBER ONE POSITION A VENDOR THAT KNOWS WHAT COMPETITORS ARE BIDDING MR SZRAJBER ADDED CAN INCREASE ITS BID WHILE STILL UNDERCUTTING THE COMPETITION THAT MEANS EVEN FATTER COMMISSION PAYMENTS FOR THE INFORMATION MR SZRAJBER SAID MR WANSTALL WANTED TO KNOW HOW HE WOULD BE PAID MR SZRAJBER SAID A WINNING SUPPLIER WOULD PAY THE COMMISSION TO ASTAR INTERNATIONAL A SWISS COMPANY CONTROLLED BY MR SZRAJBER WHICH WOULD FORWARD A SHARE OF THE PROCEEDS TO MR WANSTALL MR SZRAJBER ADDED NOW OBVIOUSLY IT MAY BE A BIT EMBARRASSING IF YOU TELL ASTAR TO SEND IT TO BARCLAYS BANK TO YOUR ACCOUNT IN ENGLAND BECAUSE THERE IS A RECORD INSTEAD MR WANSTALL SHOULD SET UP A NUMBERED SWISS BANK ACCOUNT AND WHEN THE MONEY COMES IN AUTOMATICALLY IT GOES TO YOUR NUMBERED ACCOUNT TWO WEEKS LATER BRITISH POLICE RAIDED MR SZRAJBER'S OFFICE IN LONDON IN ADDITION TO LETTERS FAXES AND CONFIDENTIAL BP OIL COMPANY DOCUMENTS THE POLICE FOUND TWO OTHER ITEMS ONE WAS MR SZRAJBER'S DIARY IN WHICH HE DETAILED THE FLOW OF INFORMATION FROM OILCOMPANY SPIES THROUGH INFORMATION BROKERS TO SUPPLIERS POLICE ALSO FOUND RECORDS OF MR SZRAJBER'S SWISS BANK ACCOUNTS SWISS AUTHORITIES HAVE REFUSED TO TURN OVER BANK RECORDS TO AID THE INVESTIGATION BRITISH AUTHORITIES SAY IN BERN A SPOKESMAN FOR THE SWISS DEPARTMENT OF JUSTICE SAYS THE GOVERNMENT REFUSED THE BRITISH REQUEST BECAUSE THERE WAS NO TREATY WITH BRITAIN COVERING SUCH REQUESTS AND BECAUSE THE MATTER WAS NOT CONSIDERED A CRIME UNDER SWISS LAW THE SZRAJBER DOCUMENTS HAVE HELPED UNMASK SEVERAL OF THE RINGS SPYING ON OIL COMPANIES ONE TARGETED SHELL'S BRITISH OPERATION INCLUDING ITS ACQUISITION OF A VESSEL TO HOUSE WORKERS AT A NORTH SEA OIL RIG ACCORDING TO BRITISH PROSECUTORS A SHELL ENGINEER IN LONDON FRANCIS HEMSWORTH WAS GIVING INSIDE INFORMATION ON THE BIDDING PROCESS TO A LONDON BROKER NAMED JOHN NAPIER THE SHELL ENGINEER WAS PAID 45000 FOR THE INFORMATION THE DATA WERE THEN PASSED THROUGH TWO OTHER BROKERS TO A SCANDINAVIAN COMPANY BIDDING FOR THE CONTRACT IN OCTOBER MESSRS NAPIER AND HEMSWORTH PLEADED GUILTY TO MAKING AND RECEIVING CORRUPT PAYMENTS EACH WAS SENTENCED TO A YEAR IN JAIL THE TWO OTHER BROKERS WERE PUT ON TRIAL IN LONDON BUT WERE ACQUITTED IN ANOTHER CASE POLICE IN STAVANGER NORWAY HAVE CHARGED THAT AN ENGINEER WORKING FOR STATOIL THE NORWEGIAN OIL COMPANY HAD BEEN FEEDING INSIDE INFORMATION AND DOCUMENTS ON THE COMPANY'S OILPIPELINE CONTRACTS TO MANNESMANN THE GERMAN PIPE PRODUCER IN RETURN POLICE SAY THE ENGINEER GOT PAYMENTS WORTH MORE THAN 600000 STAVANGER POLICE ARRESTED THE ENGINEER AND TWO MANNESMANN OFFICIALS THE CASE IS HEADING TOWARD TRIAL A MANNESMANN SPOKESMAN IN DUSSELDORF CONCEDES THE COMPANY MADE THE PAYMENTS AND THAT THEY WERE IMPROPER THE SPOKESMAN ADDS THAT FOUR EMPLOYEES INVOLVED IN THE PAYMENTS HAVE LEFT THE COMPANY IN THE US THE SZRAJBER DOCUMENTS HAVE POINTED TO A SPY IN MOBIL THE DOCUMENTS INDICATE HE WAS RECRUITED AND OVERSEEN BY AN INFORMATION BROKER IN THE US WHO IN TURN WAS COOPERATING WITH INFORMATION BROKERS IN LONDON MOBIL DECLINES TO COMMENT FBI AGENTS ARE STILL TRYING TO TRACK THE SPY DOWN IN THE EXXON CASE MESSRS SZRAJBER AND STUART PLEADED GUILTY LAST FEBRUARY TO PAYING THE 10000 BRIBE TO THE EXXON ENGINEER BUT THE SZRAJBER DOCUMENTS SHOWED THAT A FAR BIGGER SCHEME A BROAD SPY OPERATION AGAINST BRITISH PETROLEUM WAS BEING CARRIED OUT BY MR SZRAJBER AND PAOLO SORELLI ANOTHER LONDON INFORMATION BROKER ACCORDING TO CHARGES BROUGHT BY BRITAIN'S SERIOUS FRAUD OFFICE IN A TRIAL IN LONDON'S SOUTHWARK CROWN COURT PROSECUTORS SAID THAT A SPY INSIDE BP'S PROCUREMENT OFFICE KNOWN ONLY AS MR X WAS FEEDING INFORMATION TO MR SORELLI MR SORELLI ALLEGEDLY WAS PASSING THE DATA ON TO MR SZRAJBER WHO IN TURN WAS SELLING THE INFORMATION TO VARIOUS SUPPLIERS IN THE CASE OF ONE BIG PIPELINE PROJECT TO A JOINT VENTURE OF THE GERMAN COMPANIES MANNESMANN AND THYSSEN IN SUCH PROJECTS OIL COMPANIES TRY TO KEEP THE LIST OF BIDDERS SECRET TO PREVENT COLLUSION AMONG SUPPLIERS OIL COMPANIES ALSO DON'T DISCLOSE WHICH WAY THEY ARE LEANING PRIOR TO AWARDING A CONTRACT TO KEEP COMPETITION BRISK DOCUMENTS AND TESTIMONY AT THE TRIAL OF MESSRS SORELLI AND SZRAJBER SHOW HOW THE ESPIONAGE SYSTEM WORKED FIVE YEARS AGO FOR EXAMPLE BP DISCOVERED THAT AN UNDERWATER PIPELINE BRINGING OIL FROM THE NORTH SEA HAD CORRODED IN A MARCH 3 1989 INTERNAL MEMO ONE OF THE EARLIEST BP DOCUMENTS ON THE PROBLEM A BP STUDY TEAM CONCLUDED THAT THE PIPELINE SHOULD BE REPLACED IMMEDIATELY THE TEAM ADDED MANNESMANN IS KNOWN TO HAVE SUFFICIENT CAPACITY SUMITOMO'S CAPACITY HAS TO BE CLARIFIED THE COST WAS ESTIMATED AT 79 MILLION THE MR XSORELLISZRAJBER INFORMATION NETWORK WAS ALREADY WORKING WELL TWO WEEKS BEFORE THE BP INTERNAL MEMO WAS EVEN WRITTEN MR SZRAJBER HAD JOTTED SOME NOTES IN HIS DIARY MAKING REFERENCE TO PAOLO MR SORELLI'S FIRST NAME PAOLOPIPE REPLACEMENT MANNESMANN & SUMITOMO ONLY VALUE 50 M ABOUT 74 MILLION BP SUBSEQUENTLY EXPANDED ITS LIST OF BIDDERS A FEW DAYS LATER MR SZRAJBER WROTE PAOLOBIDDERS 1 NIPPON STEEL 2 NKK 3 SUMITOMO 4 MANNESMANN THAT ACCURATELY IDENTIFIED ALL FOUR COMPANIES ON THE BIDDERS LIST BY THIS TIME ACCORDING TO COURT DOCUMENTS MR SZRAJBER HAD AGREED TO WORK FOR THE MANNESMANNTHYSSEN JOINT VENTURE IN RETURN FOR A COMMISSION WITH A SHARE OF THE COMMISSION GOING TO MR SORELLI MEANWHILE THE LINEUP OF BIDDERS CHANGED AGAIN WITH THE JAPANESE MILLS NIPPON STEEL CORP NKK CORP AND SUMITOMO CORP FORMING A CONSORTIUM TO MAKE A SINGLE BID THAT ANGERED BP OFFICIALS WHO TO AVOID TECHNICAL PROBLEMS WANTED JUST ONE MILL TO SUPPLY THE PIPE SINCE TECHNICAL CONSIDERATIONS CAN BE MORE IMPORTANT THAN PRICE IN DETERMINING WHO WINS SUCH PROJECTS THESE WERE IMPORTANT DEVELOPMENTS THE MR XSORELLISZRAJBER NETWORK SWUNG INTO ACTION TO FEED THIS INFORMATION TO THE MANNESMANNTHYSSEN VENTURE MR SZRAJBER JOTTED IN HIS DIARY MR X FROM BP BP DID NOT LIKE JAPANESE CONSORTIUM THEY ARE NOT FULLY ACCEPTED AND SO FAR HAVE NOT BEEN ASKED ANY QUESTIONS ON THE TECHNICAL SIDE ASK MANNESMANN TO AGREE EVERYTHING BP REQUESTS TECHNICALLY MANNESMANN'S BID HE ADDED IS 10 CHEAPER THAN THE JAPANESE BID THIS CRUCIAL INFORMATION WAS ALL RIGHT ON TARGET IT LOOKED AS IF THE MANNESMANNTHYSSEN VENTURE COULD COAST TO VICTORY AND WOULDN'T HAVE TO SHAVE PRICES TO WIN BUT THE GERMANS STILL WORRIED ABOUT THE JAPANESE THREAT AND DIDN'T HESITATE TO SEEK INFORMATION ON THEIR COMPETITOR INCLUDING THE JAPANESE BID THE SZRAJBER DIARY INDICATES ON APRIL 21 MR SZRAJBER WROTE TERNIEDEN MUST HAVE COPY JAP'S OFFER THE REFERENCE WAS TO JURGEN TERNIEDEN DIRECTOR OF PIPE SALES FOR THYSSEN'S TRADING SUBSIDIARY INTERVIEWED BY PHONE IN DUSSELDORF MR TERNIEDEN DENIES ASKING FOR OR RECEIVING INFORMATION ON THE JAPANESE BID WE WORKED WITH MR SZRAJBER HE SAYS BUT THERE IS A LOT OF CONFUSION IN MR SZRAJBER'S DIARY AND HE MAY HAVE MIXED THINGS UP ON MAY 22 1989 A BP OFFICIAL WROTE A CONFIDENTIAL INTERNAL MEMO RECOMMENDING THAT MANNESMANNTHYSSEN GET THE ORDER BECAUSE OF THE PRICE ADVANTAGE AND TECHNICAL ACCEPTABILITY FOUR DAYS LATER MR SZRAJBER GOT THE WORD AND JOTTED IN HIS DIARY MR X DON'T WORRY ABOUT THE TECHNICAL IN JUNE 1989 BP AWARDED THE PIPE CONTRACT TO THE MANNESMANNTHYSSEN VENTURE A THYSSEN UNIT IN DUSSELDORF THEN PAID NEARLY 15 MILLION TO MR SZRAJBER'S ASTAR INTERNATIONAL IN GENEVA WHICH FORWARDED NEARLY 400000 ABOUT 600000 TO A SORELLI NUMBERED ACCOUNT IN LUGANO SWITZERLAND PROSECUTORS SAID DURING THE COMPETITION FOR THE CONTRACT MR SZRAJBER HAD JOTTED IN HIS DIARY PAOLO WILL GIVE 400000 DOES NOT WANT TO REDUCE HIS MAN A REFERENCE TO MR SORELLI'S SPY INSIDE BP ASTAR SENT ANOTHER 400000 TO A SECOND NUMBERED ACCOUNT IN LUGANO WHICH PROSECUTORS SAID WAS MR X'S ACCOUNT ASKED FOR COMMENT THYSSEN'S MR TERNIEDEN SAYS THAT BECAUSE THE THYSSENMANNESMANN VENTURE WAS THE LOW BIDDER ANYWAY THYSSEN'S PAYMENTS TO MR SZRAJBER DIDN'T HAVE ANY IMPACT ON BP A MANNESMANN SPOKESMAN ALSO ASKED TO COMMENT SAYS HIS COMPANY HAD NO DIRECT CONTACT WITH MR SZRAJBER THYSSEN WHICH OWNS 25 OF THE MANNESMANN PIPE MILL REPRESENTS MANNESMANN IN BRITAIN FOR PIPE SALES ACCORDING TO MR TERNIEDEN AT THE TRIAL MR SZRAJBER DIDN'T TESTIFY MR SORELLI TOOK THE STAND AND DENIED PASSING CERTAIN INFORMATION TO MR SZRAJBER SAYING THAT THE SZRAJBER DIARY MAY HAVE CITED PAOLO AS THE SOURCE BUT SOMEONE ELSE MUST HAVE PROVIDED IT IN OTHER CASES MR SORELLI ADMITTED PASSING INFORMATION BUT SAID HE JUST MADE IT UP TO JUSTIFY HIS SHARE OF THE COMMISSION AS FOR DATA THAT OBVIOUSLY CAME FROM BP INCLUDING INTERNAL BP DOCUMENTS FAXED FROM MR SORELLI'S OFFICE TO MR SZRAJBER'S MR SORELLI TESTIFIED THAT HE HAD NO MR X INSIDE BP PROVIDING THE DATA INSTEAD HE SAID HE GOT IT FROM A MYSTERIOUS SWISS BANKER WHO UNFORTUNATELY HAD RECENTLY DIED ON MARCH 26 1993 THE JURY CONVICTED BOTH MR SZRAJBER AND MR SORELLI OF CONSPIRACY TO COMMIT FRAUD EACH WAS LATER SENTENCED TO THREE YEARS IN PRISON AND 600000 OF THEIR FUNDS WAS CONFISCATED MR X HAS NEVER BEEN PUBLICLY IDENTIFIED POLICE INVESTIGATORS SAY HOWEVER THAT MR X WASN'T ACTING ALONE BUT WAS PART OF A RING OF BP EMPLOYEES SELLING CONFIDENTIAL INFORMATION INVESTIGATORS CALL THE RING THE DIRTY DOZEN BECAUSE OF SWISS BANKSECRECY LAWS PAYOFFS FOR INFORMATION CAN'T BE TRACED WITH LEGAL CERTAINTY TO ANY BP EMPLOYEES TRIAL PROSECUTOR STEPHEN BATTEN SAID IN COURT SEVERAL OF THE SUSPECT EMPLOYEES HAVE LEFT BP SINCE THE CASE BECAME PUBLIC BUT NONE HAVE BEEN INDICTED WHETHER THE OIL INDUSTRY WILL BE ABLE TO STAMP OUT THE SPY RINGS IS UNCERTAIN ACCORDING TO A PROSECUTOR IN THE SHELL CASE INFORMATION BROKER NAPIER TOLD POLICE THAT THE PRACTICE OF GETTING CONFIDENTIAL INFORMATION WAS COMMONPLACE IN EVERY OIL COMPANY HE HAD DEALT WITH FOR 20 YEARS THAT MR NAPIER TOLD THE POLICE IS HOW PEOPLE WIN CONTRACTS 9401060028 940106 TECHNOLOGY HEWLETTPACKARD AGREES TO BUY 15 OF APPLEIBM SOFTWARE JOINT VENTURE BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL HEWLETTPACKARD CO AGREED TO BUY A 15 STAKE IN TALIGENT INC MARKING A MAJOR STRATEGY CHANGE FOR THE CLOSELY WATCHED SOFTWARE JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC HP'S MOVE MAKES IT THE FIRST NEW INVESTOR IN TALIGENT SINCE THE VENTURE WAS ESTABLISHED IN MARCH 1992 AN IBM EXECUTIVE SAID THE TWO COMPUTER HEAVYWEIGHTS MAY SIGN UP ONE OR TWO ADDITIONAL PARTNERS OVER TIME AS WELL THE HP INVESTMENT MARKS AN ENDORSEMENT OF TALIGENT'S TECHNICAL APPROACH BUT THE APPLEIBM PARTNERSHIP HAS SIGNIFICANTLY SCALED BACK ITS ORIGINAL MUCHBALLYHOOED PLANS FORMED IN 1992 TALIGENT TOOK AIM AT CREATING A UNIFIED SOFTWARE OPERATING SYSTEM THAT WOULD BREAK THE VIRTUAL MONOPOLY HELD BY MICROSOFT CORP VARIOUS NEWS REPORTS SAID THE NEW SYSTEM WOULD COME OUT IN LATE 1993 OR SOMETIME IN 1994 OR PERHAPS IN MID1995 TALIGENT EXECUTIVES WON'T SAY WHAT THEIR ORIGINAL DELIVERY DATE WAS BUT THEY NOW CONCEDE THAT TALIGENT WON'T DELIVER SUCH A SYSTEM FOR ANOTHER TWO YEARS GIVING MICROSOFT TIME TO COME OUT WITH A JAZZEDUP ENTRY OF ITS OWN INSTEAD TALIGENT WILL FIRST SELL SOFTWAREDEVELOPMENT TOOLS USING ITS APPROACH KNOWN AS OBJECTORIENTED PROGRAMMING INDEED HP HASN'T PLEDGED TO USE THE NEW OPERATING SYSTEM EVEN THOUGH IT IS INVESTING MORE THAN 10 MILLION FOR THE 15 STAKE ACCORDING TO AN INDIVIDUAL FAMILIAR WITH THE PARTNERSHIP AN OPERATING SYSTEM CONTROLS THE BASIC FUNCTIONS OF A COMPUTER HP WILL SIMPLY MAKE USE OF TALIGENTDEVELOPED TOOLS FOR WORKING ON HP'S OWN PROGRAMMING THE COMPANY SAID A FEW MONTHS AGO THE IBMAPPLE UNIT CONSCIOUSLY PUSHED BACK THE IDEA OF BRINGING FORTH A FULL NEW OPERATING SYSTEM FIRST SAID WILLIAM FILIP AN IBM GENERAL MANAGER WHO OVERSAW THE NEGOTIATIONS WITH HP TALIGENT DECIDED TO BRING THE TOOLS TO MARKET FIRST TO LET OTHER COMPUTER MAKERS INTEGRATE THEM INTO THEIR EXISTING OPERATING SYSTEMS HP WILL RECEIVE A BOARD SEAT AND NEW SHARES IN TALIGENT AND IBM AND APPLE WILL EACH RETAIN A 425 STAKE IN THE CONCERN BESIDES MONEY TO HELP FUND DEVELOPMENT FOR THREE YEARS AT TALIGENT WHICH NOW HAS 350 EMPLOYEES AND EXPECTS TO GROW TO 450 THIS YEAR HP ALSO WILL CONTRIBUTE SOME OF ITS OWN OBJECTORIENTED TECHNOLOGY TO THE VENTURE HP SAID IT WILL LICENSE AND USE TALIGENT TOOLS ON COMPUTERS THAT USE THE UNIX OPERATING SYSTEM AND AN HP CHIP CALLED PARISC IN THE HOPES OF MAKING THE MACHINES EASIER TO PROGRAM WITH OBJECT TECHNOLOGY PROGRAMMERS COMBINE REUSEABLE BUILDING BLOCKS OF SOFTWARE OR OBJECTS THAT COMMUNICATE WITH EACH OTHER AND HELP SOFTWARE WRITERS ASSEMBLE COMPLEX PROGRAMS QUICKLY NOW TALIGENT PLANS TO MAKE ITS SOFTWARE TOOLS AVAILABLE TO WORK WITH OTHER CHIPS AND OPERATING SYSTEMS INCLUDING IBM'S OS/2 APPLE'S SYSTEM 7 FOR THE MACINTOSH AND VARIOUS VERSIONS OF THE UNIX OPERATING SYSTEM THAT MOVE MIGHT UNDERCUT TALIGENT'S OWN EFFORTS TO GET COMPUTER MAKERS TO COMMIT TO THE FULLFLEDGED OPERATING SYSTEM IT WANTS TO DELIVER TWO YEARS HENCE BUT TALIGENT APPARENTLY HOPES TO BLUNT SUPPORT FOR AN OBJECTORIENTED SYSTEM FROM MICROSOFT DUE SOMETIME NEXT YEAR AND CODENAMED CAIRO BY GETTING SOFTWARE DEVELOPERS AND HARDWARE MAKERS TO BEGIN USING TALIGENTGEARED TOOLS NOW THIS MAY WELL SAVE TALIGENT SAID JOHN GAGE DIRECTOR OF SUN MICROSYSTEMS INC'S SCIENCE OFFICE THEY HAD GOOD ENGINEERS AND SOME GOOD WORK BUT NO PRODUCT AND NO CUSTOMERS JOSEPH GUGLIELMI TALIGENT'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE STRATEGY WILL ALLOW APPLICATION SOFTWARE WRITTEN WITH TALIGENT'S PROGRAMMING TOOLS TO WORK ON COMPUTERS FROM MANY DIFFERENT VENDORS WE GET SUPPORT FROM THE WIDEST RANGE OF HARDWARE HE SAID IT ALSO SPEEDS TALIGENT'S TIME TO MARKET MR GUGLIELMI SAID IT WILL BEGIN SHIPPING EARLY VERSIONS OF ITS PROGRAMMING TOOLS TO SOFTWARE DEVELOPERS IN THE FIRST HALF OF THIS YEAR ALLOWING PROGRAMS WRITTEN WITH THEM TO START HITTING THE MARKET IN 1994 THE THIRD MAJOR PLAYER IN THE SOFTWARE RACE IS NEXT INC WHOSE OBJECTORIENTED TECHNOLOGY HAS ALSO BEEN LICENSED BY HP AND WHICH RECENTLY AGREED TO LICENSE IT TO SUN A KEY HP COMPETITOR WHAT'S GOING TO HAPPEN IN THE NEXT TWO OR THREE YEARS IS THE WAY THAT SOFTWARE IS WRITTEN IS GOING TO CHANGE SAID GARY EICHHORN GENERAL MANAGER OF HP'S WORKSTATIONSYSTEMS GROUP IN EVERY MAJOR CHANGE IN THE INDUSTRY THERE IS AN OPPORTUNITY FOR A NEW LEADER TO EMERGE HE EXPECTS TO BEGIN SHIPPING COMPUTERS THAT USE THE TALIGENT TECHNOLOGY BY 1995 HP HAS THE RIGHT TO USE THE FULLFLEDGED TALIGENT OPERATING SYSTEM WHEN IT FINALLY IS READY BUT HASN'T DECIDED WHETHER IT WILL ST JUDE MEDICAL INC ST PAUL MINN WALTER L SEMBROWICH PHD A FOUNDER AND COCHAIRMAN OF DIAMETRICS MEDICAL INC WAS NAMED A DIRECTOR OF THIS MAKER OF HEART VALVES INCREASING BOARD MEMBERSHIP TO NINE 9404120144 940412 WHO'S NEWS TRANS WORLD AIRLINES TRANS WORLD AIRLINES ST LOUIS SCOTT C GIBSON FORMERLY AN OFFICIAL AT CONTINENTAL AIRLINES WAS NAMED TO THE NEW POST OF VICE PRESIDENT OF PLANNING AT THIS CARRIER HAROLD ACHTZIGER FORMERLY AN OFFICIAL AT DELTA AIR LINES WAS NAMED TO THE NEW POST OF VICE PRESIDENT OF INTERNATIONAL AIRLINE OPERATIONS AND WILLIAM L SCHECTER FORMERLY A TWA STAFF OFFICIAL IN LABOR RELATIONS WAS NAMED VICE PRESIDENT OF LABOR RELATIONS A NEW POST JEFFREY H ERICKSON EARLIER NAMED TWA'S PRESIDENT AND CHIEF OPERATING OFFICER WAS ELECTED A DIRECTOR FILLING A VACANCY 9404120143 940412 WHO'S NEWS GENRAD INC GENRAD INC CONCORD MASS ADRIANA STADECKER A DIGITAL EQUIPMENT CORP VICE PRESIDENT WAS NAMED A DIRECTOR OF THIS MAKER OF AUTOMATED TEST EQUIPMENT MS STADECKER WILL SUCCEED WILSON WILDE WHO PLANS TO STEP DOWN FROM THE BOARD NEXT MONTH A COMPANY SPOKESMAN SAID 9404120142 940412 POLITICS & POLICY REP LEACH CRITIC OF THE CLINTONS FACES QUESTIONS AT HOME UNDERSCORING WHITEWATER RISK FOR GOP BY JOHN HARWOOD AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL IOWA CITY IOWA THREE MONTHS INTO REP JIM LEACH'S CAREER AS A HIGHPROFILE PRESIDENTIAL WATCHDOG 17YEAROLD SHAUN COLE HAS A QUESTION DO YOU THINK THAT PURSUING WHITEWATER IS THE BEST WAY YOU CAN REPRESENT US IT'S NOT THE ONLY THING I DO THE VETERAN IOWA REPUBLICAN RESPONDS QUICKLY THOUGH A FLOOD OF RECENT NATIONAL ATTENTION SUGGESTS AS MUCH MOMENTS LATER WHEN ANOTHER CITY HIGH SCHOOL STUDENT VOICES CONCERN THAT THE AFFAIR MAY STALL ACTION ON HEALTH CARE AND OTHER ISSUES MR LEACH INSISTS CONGRESS IS NOT BY ANY MEANS HAMSTRUNG SUCH SKEPTICISM WHICH MR LEACH ENCOUNTERED HERE DURING THE CONGRESSIONAL EASTER RECESS UNDERSCORES THAT PRESIDENT CLINTON ISN'T THE ONLY ONE FACING POLITICAL RISKS OVER THE PUSH TO INVESTIGATE THE CLINTONS' DEALINGS OVER WHITEWATER DEVELOPMENT CORP HARDCHARGING REPUBLICAN LAWMAKERS MAY FACE INCREASING PUBLIC IRE FOR USING WHITEWATER TO PRODUCE GRIDLOCK ESPECIALLY IF A SPECIALCOUNSEL INVESTIGATION AND CONGRESSIONAL HEARINGS DON'T TURN UP MUCH EVIDENCE OF WRONGDOING BY THE CLINTONS PLENTY OF PEOPLE IN THE FIRST DISTRICT APPROVE OF MR LEACH'S EFFORTS TO INVESTIGATE WHITEWATER AT A MEETING OF THE LINN COUNTY FARM BUREAU CORN GROWERS INTERRUPTED THEIR APPEALS FOR MORE FEDERALLY MANDATED ETHANOL PRODUCTION TO INVOKE RUSH LIMBAUGH AND TELL THE CONGRESSMAN TO PRESS ON FOR ALL THE HAULING MANURE HE DOES ON HIS FARM GROUSED 50YEAROLD RON BOSS I DIDN'T MAKE THE MONEY THAT HILLARY RODHAM CLINTON MADE IN THE 1970S INVESTING IN CATTLE FUTURES BUT EVEN MR LEACH WHO HAS LONG THRIVED POLITICALLY ON AN IMAGE OF JUDICIOUS NONPARTISANSHIP ACKNOWLEDGES THE POTENTIAL HAZARDS OF A STAR TURN THAT HAS TAKEN HIM TO NEWSPAPER FRONT PAGES AND THE STAGE OF TELEVISION'S DONAHUE SHOW THERE COULD BE A BACKLASH THE NINETERM HOUSE MEMBER SAYS DOWNING A HOT TURKEY SANDWICH AT A CAFE IN THIS LIBERAL UNIVERSITY TOWN MR LEACH IS ALREADY FEELING THE BARBS OF ANGRY DEMOCRATIC ACTIVISTS AT HOME WHO IN THE PAST HAVE ALL BUT ACQUIESCED TO HIS ROUTINE REELECTION VICTORIES THAT'S JUST NOT THE JIM LEACH PEOPLE HAVE KNOWN FOR 20 YEARS SAYS RON PARKER COMMUNICATIONS DIRECTOR FOR THE IOWA DEMOCRATIC PARTY AFTER LEAVING THE INCUMBENT ESSENTIALLY UNOPPOSED IN THE LAST TWO ELECTIONS THE PARTY HAS ENCOURAGED A BELATED CHALLENGE FROM GLEN WINEKAUF A YOUTHFUL FORMER AIDE TO DEMOCRATIC SEN TOM HARKIN THE FIRSTTIME CANDIDATE ISN'T GIVEN MUCH CHANCE OF WINNING BUT HE SAYS MR LEACH'S PURSUIT OF WHITEWATER WILL HELP HIM RALLY THE DEMOCRATIC BASE IN A DISTRICT THAT GAVE MR CLINTON AN ABOVEAVERAGE 12 PERCENTAGE POINT MARGIN OVER GEORGE BUSH IN 1992 MEANWHILE THE DES MOINES REGISTER RECENTLY CHIDED MR LEACH FOR ANNOUNCING IN ADVANCE THAT HE WOULD UNVEIL UNSPECIFIED BLOCKBUSTER DETAILS ABOUT WHITEWATER THE ALLEGATION TURNED OUT TO BE THAT RESOLUTION TRUST CORP OFFICIALS IN WASHINGTON HAD INTERFERED WITH A WHITEWATERRELATED INVESTIGATION BY SUBORDINATES IN KANSAS CITY MO BUT THE TWO MOST SENIOR OFFICIALS ALLEGEDLY INVOLVED BOTH OF WHOM STARTED WORKING FOR THE GOVERNMENT BEFORE MR CLINTON BECAME PRESIDENT DENIED INTERFERING WITH THE INQUIRY MOREOVER THEY ACCUSED MR LEACH OF IMPROPERLY RELEASING CONFIDENTIAL DOCUMENTS THAT COULD COMPROMISE THE RTC'S ABILITY TO RECOVER MONEY FOR THE TAXPAYERS FROM THOSE RESPONSIBLE FOR THE FAILURE OF MADISON GUARANTY SAVINGS & LOAN THE THRIFT RUN BY THE CLINTONS' WHITEWATER PARTNER THE CONGRESSMAN ALSO FOUND HIMSELF ON THE DEFENSIVE AFTER AN ASSOCIATED PRESS ANALYSIS LAST MONTH CHALLENGED SOME OF HIS MOST SPECTACULAR ALLEGATIONS THAT MR AND MRS CLINTON FAILED TO REPORT AND PAY TAXES ON THE FULL CAPITAL GAINS REALIZED ON THE SALE OF A WHITEWATER LOT THAT THE CLINTONS MADE NOT LOST MONEY IN WHITEWATER THAT 100000 WAS SKIMMED FROM MADISON GUARANTY FOR THE BENEFIT OF WHITEWATER AND THAT REGULATORS WERE PRESSURED NOT TO INVESTIGATE THE LINK BETWEEN WHITEWATER AND THE FAILURE OF THE THRIFT LATE LAST WEEK MR LEACH'S STAFF ISSUED A LENGTHY STATEMENT IN RESPONSE WITHOUT BACKING AWAY FROM CHARGES THAT THE CLINTONS FAILED TO REPORT AND PAY TAXES ON THE FULL GAIN FROM A SALE OF WHITEWATER LOT 13 THE GOP STAFF CONCEDED THAT WE HAVE VERY FEW INTERNAL WHITEWATER DOCUMENTS SO THE FOLLOWING ANALYSIS IS SUBJECT TO REVIEW BASED ON MATERIAL THAT MAY EMERGE LATER ONE OF MR LEACH'S CENTRAL CHARGES IS THAT THE RTC'S WASHINGTON HEADQUARTERS TRIED TO STOP AN INVESTIGATION OF POSSIBLE CRIMINAL CONDUCT BEHIND THE FAILURE OF MADISON TO SUPPORT THIS ALLEGATION HE NOTES THAT THE RTC REMOVED A SENIOR INVESTIGATOR FROM THE CASE BUT MR LEACH HIMSELF HAS RELEASED A MEMO FROM THE INVESTIGATOR JEAN LEWIS IN WHICH SHE AGREES WITH THE DECISION AND PRAISES THOSE WHO ARE TAKING OVER HER ROLE IN THE CASE THE POWERS THAT BE HAVE DECIDED THAT I'M BETTER OFF OUT OF THE LINE OF FIRE AND I AIN'T ARGUING BUT PLEASE LET ME ASSURE YOU THAT WE ARE LEAVING YOU IN VERY CAPABLE HANDS SHE WROTE TO HER STAFF IN KANSAS CITY LAST NOVEMBER THERE'S LITTLE EVIDENCE THAT SUCH QUESTIONS HAVE PENETRATED VERY DEEPLY BACK IN MR LEACH'S DISTRICT THE 51YEAROLD CONGRESSMAN ENJOYS UNUSUAL LATITUDE BECAUSE OF A GREAT RESERVOIR OF GOODWILL AMONG CONSTITUENTS SAYS DAVID NAGLE A FORMER DEMOCRATIC CONGRESSMAN WHO'S TRYING TO REGAIN HIS OLD SEAT FROM REPUBLICAN REP JIM NUSSLE THIS FALL YET GIVEN THE NATION'S VOLATILE ANTIINCUMBENT MOOD EVEN SECURE POLITICIANS CAN FIND THEMSELVES IN TROUBLE IN A HURRY AT SOME POINT JIM IS GOING TO HAVE TO DECIDE WHETHER HE CAN FIND THAT SMOKING GUN MR NAGLE SAYS IF HE CAN'T HE BETTER GET AWAY FROM IT IT'S NOT JUST THE HIGHSCHOOL STUDENTS IN MR LEACH'S DISTRICT WHO WORRY THAT THE WHOLE MESS HAS BECOME A MAJOR DISTRACTION FROM THE NATION'S BUSINESS WHITEWATER DIDN'T COME UP DURING A HEALTHCARE FORUM MR LEACH ATTENDED AT AN IOWA CITY SENIOR CITIZENS CENTER BUT AFTERWARD THE ORGANIZER OF THE AFFAIR EXPRESSED UNEASE I HOPE HE'LL SPEND AS MUCH EFFORT ON THE WHOLE HEALTHCARE ISSUE AS HE HAS ON WHITEWATER SAID BOB WELSH 67 A RETIRED MINISTER WHO HEADS THE JOHNSON COUNTY TASK FORCE ON AGING LET'S GET ON WITH THE MAJOR AGENDA A DEMOCRAT MR WELSH HAS BACKED MR LEACH IN THE PAST BUT ISN'T SURE HE WILL THIS TIME TO ASSUAGE SUCH CONCERNS MR LEACH CALLS THE SCANDAL A SMALL ISSUE THAT'S SIMPLY PART OF HIS JOB AS RANKING REPUBLICAN ON THE HOUSE BANKING COMMITTEE I TRY TO PUT IN A FULL DAY APART FROM WHITEWATER HE SAYS WHILE HOLDING MR CLINTON TO ACCOUNT ON ETHICS ISSUES HE CONSPICUOUSLY DEMONSTRATES HIS OWN ADHERENCE TO STANDARDS DECLINING TO LET A REPORTER BUY HIS SANDWICH AND REFUSING TO ACCEPT A COMMEMORATIVE LITTLE HAWK PIN FROM CITY HIGH GOVERNMENT TEACHER DALE HIBBS EVEN AFTER MR HIBBS ADMITS WITH A CHUCKLE THAT IT IS OF FIVEANDDIME QUALITY MR LEACH ALSO PROJECTS AN AIR OF DUTIFUL INDIFFERENCE TO THE POTENTIAL WHITEWATER BACKLASH I'M NOT SO WEDDED TO MY JOB THAT I CARE HE SAYS IF YOU CAN'T DO WHAT YOU BELIEVE IN PUBLIC LIFE YOU GET OUT OF PUBLIC LIFE 9404120141 940412 ECONOMY REBOUNDING EARNINGS STIR OLD DEBATE ON PRODUCTIVITY'S TIE TO PROFITSHARING BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL WHEN CHRYSLER CORP INSTITUTED PROFITSHARING SIX YEARS AGO IT WAS PARTLY TO SWEETEN THE BITTER PILL OF WAGE CONCESSIONS AT THE TIME THE AUTO MAKER'S EARNINGS WERE STILL WEAK SO PAYOUTS TO EMPLOYEES WERE SMALL THIS YEAR HOWEVER A NEWLY RECOVERED CHRYSLER PAID AVERAGE PROFITSHARING BONUSES OF 4300 A PERSON TO 81000 WORKERS OR AN INDICATED TOTAL OF ABOUT 348 MILLION WITH SUCH LARGE SUMS BEING DOLED OUT CHRYSLER NATURALLY HOPES THAT THE PROGRAM WILL NOT ONLY MAKE WORKERS HAPPY BUT INCREASE THEIR PRODUCTIVITY INTUITIVELY THERE'S A LINK BETWEEN PROFITSHARING AND PRODUCTIVITY SAYS LEE SECHLER A SPOKESMAN FOR THE HIGHLAND PARK MICH COMPANY OUR EMPLOYEES SEE THAT WHAT THEY DO MAKES A DIFFERENCE NOT JUST FOR THE COMPANY BUT FOR THEMSELVES TOO CHRYSLER'S HUNCH SEEMS LOGICAL IF EMPLOYEES GET A CUT OF PROFITS THEY WILL WORK HARDER TO INCREASE THOSE PROFITS YET FOR AS LONG AS PROFITSHARING HAS EXISTED A DEBATE HAS SIMMERED ABOUT ITS IMPACT ON PRODUCTIVITY OR EMPLOYEE OUTPUT PER HOUR WORKED PROFITSHARING MAY NOT HURT BUT HOW MUCH IF AT ALL DOES IT HELP THAT QUESTION IS PARTICULARLY PERTINENT NOW WITH CORPORATE PROFITS REBOUNDING AND WITH ALMOST A QUARTER OF AMERICAN COMPANIES OFFERING PROFITSHARING SOME NEW RESEARCH SUGGESTS THAT PROFITSHARING CAN HELP PRODUCTIVITY APPRECIABLY GIVEN THE RIGHT CONDITIONS STILL THERE REMAIN A NUMBER OF SKEPTICS WHO CONTEND THAT THE LINKS BETWEEN PROFITSHARING PRODUCTIVITY AND PROFITABILITY ARE OFTEN MURKY AT BEST IN A RECENT STUDY RUTGERS UNIVERSITY ECONOMIST DOUGLAS L KRUSE COMPARED COMPANIES THAT HAVE PROFITSHARING WITH THOSE THAT DON'T AND FOUND THAT GENERALLY BUSINESSES WITH PROFITSHARING HAD GREATER GAINS IN PRODUCTIVITY EVEN MORE PROVOCATIVELY MR KRUSE ARGUES THAT PROFITSHARING MAY ACTUALLY HELP COMPANIES AVOID LAYOFFS DURING ROUGH TIMES THE KEY THING FOR PRODUCTIVITY IS DOES THE EMPLOYEE THROUGH PROFITSHARING PERCEIVE THAT HIS PAY DEPENDS ON HIS PERFORMANCE THIS YEAR MR KRUSE SAYS BUT OTHERS DISAGREE A RECENT HARVARD BUSINESS REVIEW ARTICLE TITLED WHY INCENTIVE PLANS CANNOT WORK SAYS THAT REWARD PROGRAMS ARE DOOMED TO FAIL BECAUSE THEY DON'T CREATE AN ENDURING COMMITMENT TO ONE'S WORK RATHER THEY GEAR WORKERS TO PERFORM FOR SPECIFIC REWARDS CITING A RAFT OF SURVEYS AUTHOR ALFIE KOHN ALSO ARGUES THAT BY ESTABLISHING INCENTIVE PLANS EMPLOYERS FREQUENTLY OVERLOOK INTANGIBLES CRUCIAL TO EMPLOYEE SATISFACTION SUCH AS PROVIDING POSITIVE FEEDBACK OR A MEASURE OF SELFDETERMINATION WHEN EMPLOYERS DANGLE GOODIES IN FRONT OF EMPLOYEES THEY MAY WORK HARDER FOR THE SHORT TERM BUT THEY UNDERMINE CREATIVITY AND INTEREST IN THE JOB SAYS MR KOHN A MANAGEMENT CONSULTANT OF THE 712308 PENSION PLANS REGISTERED WITH THE LABOR DEPARTMENT IN 1990 418587 WERE PROFITSHARING PLANS A CATEGORY THAT INCLUDES 401K PLANS MORE THAN 26 MILLION PEOPLE PARTICIPATED IN THE PROFITSHARING PLANS WHICH HAD TOTAL ASSETS OF 5463 BILLION ACCORDING TO THE US CHAMBER OF COMMERCE EMPLOYEE BENEFITS SURVEY CITED BY MR KRUSE THE PERCENTAGE OF US COMPANIES OFFERING PROFITSHARING HAS HOVERED BETWEEN 19 AND 23 SINCE 1963 LAST WEEK CONTINENTAL AIRLINES SAID IT PLANS TO OFFER A PROFITSHARING PLAN TO EMPLOYEES THAT WOULD DISTRIBUTE 15 OF PRETAX EARNINGS PRORATED ACCORDING TO SALARY IN FACT MANY AIRLINES HAVE HAD PROFITSHARING PLANS FOR YEARS BUT SINCE FEW HAVE HAD PROFITS RECENTLY PROFITSHARING HAS HAD LITTLE IMPACT ON PRODUCTIVITY AND MORALE THE EXCEPTION IS SOUTHWEST AIRLINES THE DALLASBASED CARRIER THAT HAS OFFERED PROFITSHARING SINCE 1973 RECENTLY THE COMPANY DISBURSED ITS 1993 PROFITSHARING BONUS WHICH ON AVERAGE CAME TO 105 OF EACH EMPLOYEE'S COMPENSATION PROFITSHARING HAS BEEN A TREMENDOUS INCENTIVE TO PRODUCTIVITY SAYS GARY KERANS PRESIDENT OF THE SOUTHWEST AIRLINES PILOTS ASSOCIATION THE NEW RESEARCH ON PROFITSHARING IS SURE TO FAN THE FLAMES OF THE PRODUCTIVITY DEBATE FOR HIS BOOK PROFIT SHARING DOES IT MAKE A DIFFERENCE MR KRUSE EXAMINED THE FINANCIAL HISTORIES OF 500 PUBLICLY TRADED COMPANIES HALF OF WHICH HAVE PROFITSHARING AFTER MATCHING COMPANIES BY SIZE AND INDUSTRY HE FOUND THAT AT BUSINESSES WITH TRADITIONAL PROFITSHARING AND THOSE WITH DISCRETIONARY INCENTIVE PLANS THE NEW PRODUCTIVITY LEVEL IN THE FIRST YEAR WAS ON AVERAGE 5 HIGHER THAN AT COMPANIES WITHOUT PROFITSHARING MOREOVER PRODUCTIVITY STAYED HIGH FOR THE NEXT SEVEN YEARS BUSINESSES THAT HAVE PLANS LABELED PROFITSHARING BUT WHICH IN FACT GIVE EMPLOYEES AN ANNUAL BONUS BASED ON SALARY NOT ON PROFITS HAD ON AVERAGE NO GAINS IN PRODUCTIVITY IF THEY ARE GOING TO GET MONEY AS A CHRISTMAS BONUS THEY MAY NOT WORK AS HARD BECAUSE THEY FIGURE THEY'LL GET THE MONEY ANYWAY SAYS TERESA GHILARDUCCI A LABOR ECONOMIST AT UNIVERSITY OF NOTRE DAME HARDWARE WHOLESALERS INC IN FORT WAYNE IND ADOPTED PROFITSHARING 41 YEARS AGO TO FUND A PENSION PLAN AND TO MOTIVATE EMPLOYEES THE COMPANY FIGURED THAT IF PEOPLE KNEW THEIR PENSIONS WERE LINKED TO ITS PERFORMANCE THEY MIGHT WORK MORE PRODUCTIVELY THE COMPANY'S GAMBLE SEEMS TO HAVE PAID OFF EMPLOYEE TURNOVER IS LOW THE PENSION NESTS ARE WELLFEATHERED AND RECENT PROFITS SO HIGH THAT AFTER 10 OF 1993 NET INCOME WAS SPLIT AMONG THE COMPANY'S 1000 EMPLOYEES EACH WORKER RECEIVED NEARLY A QUARTER OF HIS OR HER COMPENSATION AT SMALLER COMPANIES WHERE IT'S EASIER FOR EMPLOYEES TO SEE THE CONNECTION BETWEEN THEIR WORK AND THE BOTTOM LINE PRODUCTIVITY GREW EVEN MORE SUBSTANTIALLY BUSINESSES WITH FEWER THAN 775 EMPLOYEES SAW A PRODUCTIVITY LEVEL BETWEEN 11 AND 17 HIGHER THAN COMPARABLE COMPANIES WITHOUT PROFITSHARING SAYS MR KRUSE ALSO COMPANIES REGARDLESS OF SIZE THAT PAY HEFTY PROFIT SHARES HAD GREATER PRODUCTIVITY GROWTH THAN CONCERNS WITHOUT PROFITSHARING MR KRUSE SAYS THOSE PAYING FATTER BONUSES THAN THE AVERAGE 36 OF EMPLOYEE COMPENSATION HAD PRODUCTIVITY LEVELS BETWEEN 7 AND 13 HIGHER THAN COMPANIES WITHOUT PROFITSHARING SPARTAN MOTORS INC A CHARLOTTE MICH MAKER OF FIRETRUCK AND MOTORHOME CHASSIS HAS PAID EMPLOYEES AN AVERAGE OF 15 TO 20 OF COMPENSATION EACH YEAR SINCE ESTABLISHING PROFITSHARING IN 1981 WHILE THE COMPANY SAYS MANY FACTORS HAVE FUELED RECENT PRODUCTIVITY GROWTH AFTER PROFITSHARING WAS INTRODUCED EMPLOYEES BECAME NOTICEABLY MORE FORTHCOMING WITH SUGGESTIONS AND MORE AGGRESSIVE ABOUT ELIMINATING WASTE AT CHRYSLER WHEN PAYMENTS HAD BEEN SO MODEST EARLIER PEOPLE DIDN'T PAY MUCH ATTENTION TO PROFITSHARING SAYS RUDY KUZEL A UNITED AUTO WORKERS REPRESENTATIVE AT CHRYSLER THIS YEAR CHRYSLER PAID OUT AN AVERAGE OF 105 OF COMPENSATION TO ITS 65000 UNIONIZED WORKERS AND 16000 NONUNION STAFF AND PEOPLE WILL WORK TO CONTINUE THE TREND PAYMENTS OF THIS KIND CAN MOTIVATE PEOPLE TO HELP THE COMPANY STAY PROFITABLE ULTIMATELY ADVOCATES OF PROFITSHARING DO CONCEDE ONE THING TO CRITICS WHEN PROFITSHARING DOES WORK IT'S VERY OFTEN BECAUSE THE PLAN IS PART OF A BROADER MANAGEMENT STRATEGY TO STRIP DOWN HIERARCHY AND BOOST EMPLOYEE INVOLVEMENT TO MAXIMIZE THE VALUE OF PROFITSHARING YOU NEED TO EMPOWER EMPLOYEES SAYS DAVID WRAY PRESIDENT OF THE PROFIT SHARING COUNCIL OF AMERICA IF YOU HAVE AN AUTHORITARIAN STYLE OF MANAGEMENT AND EMPLOYEES CAN'T BRING SOMETHING TO THE TABLE THEN THE PLAN CAN'T PERFORM AT ITS BEST 9404120140 940412 BUSINESS BRIEF GOODYEAR SAYS 1STQUARTER NET SURGED AND BOOSTS QUARTERLY DIVIDEND 33 AKRON OHIO GOODYEAR TIRE & RUBBER CO AIDED BY COST CUTTING AND NEW PRODUCTS SAID FIRST QUARTER NET INCOME ROSE 30 TO 35 AND BOOSTED ITS QUARTERLY DIVIDEND 33 TO 20 CENTS A SHARE GOODYEAR'S NET WHICH WILL BE REPORTED LATER THIS MONTH SHOULD BE IN THE 113 MILLION TO 118 MILLION RANGE OR BETWEEN 75 CENTS AND 78 CENTS A SHARE CHAIRMAN STANLEY C GAULT TOLD SHAREHOLDERS AT THE COMPANY'S ANNUAL MEETING PROFIT BEFORE THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES IN THE FIRST QUARTER OF 1993 WAS 871 MILLION OR 60 CENTS A SHARE EXTRAORDINARY CHARGES IN THE YEAREARLIER PERIOD REDUCED EARNINGS TO 800000 OR ONE CENT A SHARE THE INCREASED DIVIDEND IS PAYABLE JUNE 15 TO STOCK OF RECORD MAY 16 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY THE COMPANY'S SHARES WERE DOWN 25 CENTS AT 4150 THE US TIRE MAKER LEFT FOR DEAD IN THE WAKE OF RISING FOREIGN COMPETITION JUST A FEW YEARS AGO HAS STARTLED MANY ANALYSTS BY REJUVENATING ITSELF THE COMPANY HAS CUT ITS DEBT WHILE SQUEEZING PRODUCTION COSTS INTRODUCED SEVERAL NEW TIRES AND PUSHED INTO NEW MARKETS SUCH AS DISTRIBUTING PRIVATE LABEL TIRES THROUGH SUCH RETAILERS AS WALMART AND SEARS SLOWLY BUT SURELY THEY'VE BUILT THEMSELVES A COMPETITIVE ADVANTAGE SAYS STEPHEN GIRSKY A PAINEWEBBER ANALYST WITH THE US AUTO INDUSTRY NOW HUMMING IN HIGH GEAR AND REPLACEMENT SALES GROWING AS WELL GOODYEAR IS WELLPOSITIONED TO REAP THE BENEFITS DAVID GARRITY AN AUTO ANALYST AT MCDONALD & CO IN NEW YORK SAYS HIGH CAPACITY UTILIZATION AT GOODYEAR'S PLANTS HAS PUSHED DOWN UNIT COSTS MAGNIFYING THE EFFECT OF COSTCUTTING MEASURES THE COMPANY ALSO BOOSTED LIST PRICES 3 TO 5 IN MARCH AND ANOTHER INCREASE IS EXPECTED BEFORE THE END OF THE YEAR ALL OF THESE FACTORS ARE HELPING GOODYEAR SAID MR GARRITY MR GAULT ALSO SAID THE COMPANY EXPECTS RECORD EARNINGS FOR ALL OF 1994 BUT DECLINED TO SPECULATE WHETHER THE FULLYEAR EARNINGS GAIN WOULD BE IN THE SAME RANGE AS THAT ESTIMATED FOR THE FIRST QUARTER IN 1993 GOODYEAR HAD NET INCOME OF 3878 MILLION OR 264 A SHARE ON SALES OF 116 BILLION MEANWHILE MANY ARE WATCHING TO SEE WHERE THE COMPANY GOES FROM HERE THE TRICK FOR THE FUTURE WILL BE TO USE THEIR CURRENT ADVANTAGES TO CARRY THEM FORWARD SAYS MR GIRSKY THE ANALYST ONE TREND ALREADY VISIBLE IS GOODYEAR'S PUSH INTO EMERGING MARKETS WHERE PROSPECTS FOR RAPID GROWTH ARE STRONGEST IN YESTERDAY'S MEETING FOR INSTANCE MR GAULT SAID HE IS SEEKING JOINT VENTURES FOR TIRE MANUFACTURING IN CHINA THE COMPANY IS ALREADY GROWING RAPIDLY IN SOUTH AMERICA AND SOUTHEAST ASIA 9404120139 940412 WIRELESSCOMMUNICATIONS MARKETERS ARE TARGETS OF RAIDS BY EIGHT STATES BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES REGULATORS FROM CALIFORNIA AND SEVERAL OTHER STATES ANNOUNCED A SERIES OF RAIDS THAT APPEAR TO MARK THE BIGGEST GOVERNMENT ATTACK YET ON THE BURGEONING PROBLEM OF INVESTMENT FRAUD IN THE WIRELESSCOMMUNICATIONS INDUSTRY REGULATORS SAID THE RAIDS WERE CARRIED OUT LAST WEEK IN SOUTHERN CALIFORNIA AND ATLANTA AGAINST MORE THAN HALF A DOZEN TELEMARKETING OPERATIONS THAT WERE SELLING WIRELESS INVESTMENTS LAWENFORCEMENT OFFICIALS FROM EIGHT STATES TOOK PART IN THE RAIDS WHICH NETTED DOZENS OF BOXES OF RECORDS DUANE FRY A SENIOR INVESTIGATOR FOR THE GEORGIA SECRETARY OF STATE SAID THE ACTIONS WERE THE RESULTS OF MORE THAN HALF A YEAR OF PLANNING BY VARIOUS STATE AGENCIES WHILE THERE ARE MANY LEGITIMATE WIRELESS OPERATIONS REGULATORS SAID SUSPECT OPERATORS HAVE INVADED THE AREA AND THERE IS EVIDENCE OF WIDESPREAD FRAUD INDEED REGULATORS SAID THAT WIRELESS COMMUNICATIONS HAS BECOME ONE OF THE BIGGEST AREAS OF INVESTOR FRAUD IN THE NATION IN SOUTHERN CALIFORNIA ALONE STATE REGULATORS ESTIMATED THAT SOME 30 BOILER ROOMS SELLING WIRELESS INVESTMENTS ARE TAKING IN ROUGHLY 30 MILLION A MONTH WIRELESSCOMMUNICATIONS FRAUDS ARE THE FLAVOR OF THE MONTH SAID GARY MENDOZA THE CALIFORNIA COMMISSIONER OF CORPORATIONS WHOSE OFFICE LED THE RAIDS IN SOUTHERN CALIFORNIA AS A RESULT WIRELESSCOMMUNICATIONS PROMOTERS HAVE INCREASINGLY BECOME TARGETS OF LAWENFORCEMENT OFFICIALS IN THE PAST TWO YEARS NUMEROUS STATES AS WELL AS THE FEDERAL SECURITIES AND EXCHANGE COMMISSION AND THE FEDERAL TRADE COMMISSION HAVE FILED SUITS AGAINST WIRELESS COMPANIES LAST WEEK'S STATE RAIDS BESIDES BEING THE MOST CONCERTED ATTACK YET ON THE PROBLEM WERE ALSO AIMED AT ULTIMATELY BRINGING CRIMINAL CHARGES AGAINST SOME WIRELESS PROMOTERS STATE OFFICIALS SAID WITH CERTAIN PROMOTERS CRIMINAL PENALTIES ARE THE ONLY EFFECTIVE REMEDY THEY JUST PAPER THEIR WALLS WITH CIVIL JUDGMENTS SAID GW MCDONALD ASSISTANT COMMISSIONER FOR ENFORCEMENT FOR THE CALIFORNIA CORPORATIONS DEPARTMENT LIKE OTHER SUCH WIRELESS OPERATIONS THE COMPANIES RAIDED IN SOUTHERN CALIFORNIA OFFERED PROSPECTS THE CHANCE TO INVEST 10000 OR MORE FOR A PIECE OF A WIRELESSCABLE FRANCHISE IN A GIVEN METROPOLITAN AREA SPURRED BY PROMISED RETURNS OF 600 OR MORE OVER FIVE YEARS SOME 3000 INVESTORS NATIONWIDE HAD PUT IN MONEY EVEN THOUGH THE COMPANIES DON'T HAVE ANY OF THEIR WIRELESS FRANCHISES ACTUALLY OPERATING STATE REGULATORS SAID PLUS THESE OFFICIALS ADDED UP TO 50 OF THE INVESTORS' MONEY WENT DIRECTLY TO SALES COMMISSIONS 9404120138 940412 MEDICARE FUND TO PAY HOSPITAL BILLS FACES DEPLETION IN 6 YEARS WASHINGTON THE FEDERAL TRUST FUND USED TO PAY HOSPITAL BILLS FOR THE ELDERLY UNDER THE MEDICARE PROGRAM IS IN DANGER OF BEING DEPLETED IN SIX YEARS TRUSTEES OF THE FUND SAID IN THEIR ANNUAL REPORT THAT'S A SLIGHT IMPROVEMENT FROM THE TRUSTEES' PROJECTION LAST YEAR WHICH CONCLUDED THAT THE MEDICARE HOSPITAL TRUST FUND WAS LIKELY TO RUN OUT OF MONEY BY 1999 SINCE THEN CONGRESS HAS ADOPTED SEVERAL MEASURES THAT INCREASE MEDICARE'S REVENUE AND REDUCE PROJECTED EXPENSES IN THEIR REPORT THE TRUSTEES SAID THAT UNDER THE MOST LIKELY ECONOMIC AND DEMOGRAPHIC ASSUMPTIONS THE MEDICARE TRUST FUND IS LIKELY TO BE EXHAUSTED IN 2001 BUT COULD BE EMPTIED AS EARLY AS 2000 OR AS LATE AS 2004 THE TRUSTEES HAVE BEEN ISSUING SIMILAR DIRE PREDICTIONS FOR SOME TIME NOW BUT CONGRESS HAS BEEN RELUCTANT TO MAKE A LONGTERM FIX PROBABLY BECAUSE FIXING IT WOULD LIKELY HAVE TO INVOLVE EITHER A TAX INCREASE OR A REDUCTION OF BENEFITS HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA ONE OF THE TRUSTEES SAID THAT ENACTING LEGISLATION TO OVERHAUL THE NATION'S HEALTHCARE SYSTEM COULD GO A LONG WAY TOWARD IMPROVING THE SOLVENCY OF MEDICARE MEDICARE'S FINANCIAL CONDITION WOULD IMPROVE SIGNIFICANTLY AS A RESULT OF THE GENERAL COST CONTAINMENT UNDER THE PRESIDENT'S HEALTHCARE REFORM PROPOSAL SHE SAID THE TRUSTEES ALSO OVERSEE THE SOCIAL SECURITY TRUST FUNDS THAT PROVIDE RETIREMENT INCOME FOR THE ELDERLY AND FINANCIAL ASSISTANCE FOR THE DISABLED THEY CONCLUDED THAT THE DISABILITY FUND COULD BE EXHAUSTED BY NEXT YEAR UNLESS A GREATER PORTION OF THE REVENUE FROM THE SOCIAL SECURITY PAYROLL TAX ARE ALLOCATED TO IT THE RETIREMENT TRUST FUND IS EXPECTED TO STAY SOLVENT UNTIL 2036 THE TRUSTEES PROJECTED EIGHT YEARS SOONER THAN THEY PREDICTED LAST YEAR 9404120137 940412 KANSAS CITY INSURER WILL SEEK REVERSAL OF DAMAGE VERDICT KANSAS CITY MO KANSAS CITY LIFE INSURANCE CO SAID IT WILL SEEK THE REVERSAL OF A VERDICT HANDED DOWN BY A STATE COURT JURY IN ALVA OKLA IN WHICH THE PLAINTIFF WAS AWARDED 550000 ACTUAL AND COMPENSATORY DAMAGES AND 10 MILLION IN PUNITIVE DAMAGES THE LIFE INSURER SAID THE CASE ALLEGED THAT A FORMER AGENT FRAUDULENTLY CONVERTED 25000 BELONGING TO A POLICY OWNER AND BENEFICIARY FOR HIS OWN USE KANSAS CITY LIFE SAID THE VERDICT IS UNWARRANTED AND THE SIZE OF THE AWARD IS TOTALLY UNRELATED TO THE ALLEGED DAMAGE IT SAID THAT UPON BEING NOTIFIED OF THE AGENT'S ACTIONS THE COMPANY WITHIN 90 DAYS INVESTIGATED THE ALLEGATIONS FIRED THE AGENT AND PAID THE POLICY OWNER 25000 WITH INTEREST THE COMPANY SAID IT WILL VIGOROUSLY SEEK A REVERSAL OF THE VERDICT IN TRADING ON THE NASDAQ STOCK MARKET KANSAS CITY LIFE SHARES CLOSED AT 4350 A SHARE DOWN 325 OR 7 9404120136 940412 COMMODITIES PRECIOUSMETALS FUTURES PRICES PLUMMET AS PART OF SELLOFF BY COMMODITY FUNDS AND MANAGERS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL PRECIOUSMETALS FUTURES PLUNGED AS PART OF ANOTHER SELLOFF BY COMMODITY FUNDS AND MONEY MANAGERS THE LARGESCALE LIQUIDATION PUSHED PRICES BELOW IMPORTANT TECHNICAL SUPPORT LEVELS AND LEFT THE PRICES FOR GOLD SILVER AND PLATINUM CLOSING AT OR NEAR THEIR LOWS FOR THE DAY AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR JUNE DELIVERY DROPPED 640 TO 37990 AN OUNCE WHILE THE MAY SILVER CONTRACT FELL 227 CENTS TO 5265 AN OUNCE HITTING ITS LOWEST LEVEL SINCE LAST DECEMBER PLATINUM FOR JULY DELIVERY ON THE NEW YORK MERCANTILE EXCHANGE ALSO DECLINED FALLING 960 TO 39740 AN OUNCE THE MAY SILVER CONTRACT LED THE WAY LOWER EARLY IN THE DAY SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH & CO IN NEW YORK WORD SPREAD THAT BANKERS TRUST HAD BEEN MOVING SILVER STOCKS FROM THE COMEX WAREHOUSES AND INTO PRIVATE WAREHOUSES IN ANOTHER STATE HE SAID INVESTORS AND TRADERS MAY HAVE BEEN CAUGHT UNAWARES HE NOTED BELIEVING THAT THE RECENT REPORTED DECLINE IN COMEX WAREHOUSE STOCKS WAS ATTRIBUTABLE TO DEMAND FOR THE COMMODITY THE MARKET IS SO VULNERABLE RIGHT NOW THAT IT JUST CRYSTALLIZED EXISTING WORRIES ABOUT PRECIOUS METALS IN GENERAL AND STARTED THE SELLING MR O'NEILL SAID WHILE THERE REMAINS SOME GENERAL CONCERN ABOUT THE POSSIBILITY OF INTEREST RATES CONTINUING TO RISE COMMODITY MARKET ANALYSTS SAID THERE ARE FEW FUNDAMENTAL REASONS FOR THE DROP IN THE PRICES OF PRECIOUS METALS FUTURES CONTRACTS INSTEAD THEY POINT TO RENEWED SELLING PRESSURE FROM COMMODITY FUNDS AND OTHER MONEY MANAGERS WE SAW FUNDS LIQUIDATING LIKE CRAZY LEADING TO A COMPLETE TECHNICAL BREAKDOWN SAID IAN MACDONALD CHIEF OF PRECIOUS METALS TRADING AT CREDITSUISSE IN NEW YORK AS FUTURES PRICES CONTINUED TO FALL THROUGHOUT THE DAY STOPLOSS ORDERS PLACED BY OTHER INVESTORS WERE TRIGGERED RESULTING IN FURTHER DECLINES FRED DEMLER METALS ECONOMIST AT E D & F MAN A NEW YORK COMMODITY BROKERAGE COMPANY SAID NOW THAT JUNE GOLD HAS FALLEN THROUGH ITS 384ANOUNCE SUPPORT LEVEL THE NEXT SUCH PRICE SUPPORT SHOULD KICK IN AT 375 AN OUNCE HE SAID HIS COMPANY IS SEEING GOOD INTEREST AT AROUND THOSE LEVELS PRICES OF SILVER AND PLATINUM FUTURES CONTRACTS BOTH OF WHICH ARE MORE THINLY TRADED AND HAVE BEEN MORE VOLATILE THAN GOLD ALSO BROKE THROUGH THEIR RESPECTIVE SUPPORT LEVELS OF 539 AND 409 AN OUNCE FUND SELLING SPILLED OVER INTO OTHER COMMODITIES SENDING THE KNIGHTRIDDER COMMODITY RESEARCH BUREAU INDEX DOWN 165 POINTS TO END THE DAY AT 22213 SETTING A LOW FOR 1994 IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS PRICES OF WHEAT FUTURES CONTRACTS PLUNGED IN THE WAKE OF BENEFICIAL WEEKEND RAINS ACROSS THE PARCHED WINTER WHEATGROWING AREAS OF KANSAS OKLAHOMA AND TEXAS IN TRADING AT THE KANSAS CITY BOARD OF TRADE THE HARD RED WINTER WHEAT CONTRACT FOR JULY DELIVERY SANK 925 CENTS A BUSHEL TO SETTLE AT 322 ABOUT 90 OF FIELDS IN THE SOUTHERN PLAINS WHEAT BELT RECEIVED ABOUT HALF AN INCH OF RAIN BEFORE THE STORMS PERSISTENT DRY WEATHER PROMPTED SEVERAL TRADERS TO BEGIN TRIMMING THEIR FORECASTS OF THE WINTER WHEAT HARVEST EVEN THOUGH THE CROP HAS JUST EMERGED FROM DORMANCY AND WON'T BE HARVESTED UNTIL LATE MAY AND JUNE UNTIL THE WEEKEND SOME PARTS OF THE SOUTHERN PLAINS HAD ONLY RECEIVED ABOUT ONE INCH OF PRECIPITATION SINCE THANKSGIVING JOE CHRISTOPHER VICE PRESIDENT OF LINNCO FUTURES GROUP INC KANSAS CITY MO SAID THE RAIN IS STABILIZING FORECASTS OF THE WHEAT HARVEST MR CHRISTOPHER IS PREDICTING THAT US FARMERS WILL HARVEST 244 BILLION BUSHELS OF ALL VARIETIES OF WHEAT THIS YEAR THE BIG DROP IN WHEAT PRICES YESTERDAY HELPED DEPRESSED SOYBEAN AND CORN PRICES AT THE CHICAGO BOARD OF TRADE ENERGY CRUDE AND PRODUCT FUTURES PRICES SETTLED HIGHER YESTERDAY LIFTED BY SLOW BUT STEADY BUYING IN A MARKET WHERE PARTICIPANTS WERE FOCUSED ON THE TECHNICAL ASPECTS OF TRADING WITH LITTLE MARKETSENSITIVE NEWS TO DIRECT THE ACTION TRADERS SAID FAIRLY LIGHT BUYING BY A FEW COMMISSION HOUSES WAS ENOUGH TO DRIVE PRICES ABOVE CERTAIN IMPORTANT LEVELS WHICH IN TURN TRIGGERED ADDITIONAL BUYING TRADERS GENERALLY SHRUGGED OFF BEARISH NEWS SUCH AS A REPORT FROM THE MIDDLE EAST ECONOMIC SURVEY WHICH SHOWED THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CONTINUES TO PUMP MORE THAN ITS QUOTA THE CYPRUSBASED NEWSLETTER ESTIMATED THE GROUP PRODUCED 24990000 BARRELS A DAY IN MARCH WELL ABOVE ITS PRODUCTION CEILING OF 24520000 BARRELS DAILY 9404120135 940412 CREDIT MARKETS FALLING COMMODITY PRICES HELP BONDS RECOVER FROM MIDMORNING SWOON AND POST SLIM GAINS BY THOMAS D LAURICELLA AND ANDREW WILLIS SPECIAL TO THE WALL STREET JOURNAL NEW YORK FALLING COMMODITY PRICES HELPED MOST TREASURY NOTE AND BOND PRICES FINISH WITH SLIM GAINS RECOVERING FROM A MIDMORNING SWOON PRICES OPENED WITH SMALL LOSSES THEN PLUMMETED AT MIDMORNING THE SELLING HIT FIVEYEAR TO 10YEAR SECURITIES HARDEST AND APPEARED TO REFLECT DEALERS HEDGING AGAINST INVENTORIES OF MORTGAGEBACKED SECURITIES TRADERS SAID BUT IN THE AFTERNOON THE MARKET REBOUNDED HELPED BY SHORTCOVERING OR THE CLOSING OUT OF BEARISH BETS BY TRADERS WHO DECIDED TODAY'S PRODUCERPRICE REPORT MIGHT BE BULLISH FOR BONDS ALSO FUELING BONDS' RECOVERY WAS A STEEP DROP YESTERDAY IN PRICES OF COMMODITIES INCLUDING GOLD THE COMMODITY RESEARCH BUREAU INDEX SKIDDED 165 POINTS TO 22213 AND GOLD PLUNGED 630 AN OUNCE TO 37790 BOND INVESTORS LOVE TO SEE COMMODITIES PRICES FALL BECAUSE IT SUGGESTS AN EASING OF THE INFLATION THAT ERODES THE BUYING POWER OF A FIXED INCOME RISING GOLD AND OTHER COMMODITY PRICES HAD BEEN ONE OF THE FACTORS SPARKING FEARS OF A FLAREUP IN INFLATION IN RECENT MONTHS FOR THE MOST PART PLAYERS SAID THE BOND MARKET IS BIDING ITS TIME AHEAD OF ECONOMIC DATA MARKET ACTIVITY WAS DOMINATED BY DEALERS AND SPECULATIVE ACCOUNTS TODAY BRINGS THE RELEASE OF THE PRODUCERPRICE INDEX FOR MARCH TRADERS YESTERDAY SCRAMBLED TO CLOSE OUT POSITIONS IN ADVANCE OF THE PPI DATA WHICH THEY THOUGHT MIGHT BE SUPPORTIVE OF BOND PRICES ECONOMISTS SAY THEY BELIEVE THE PPI WILL POST AN OVERALL INCREASE OF JUST 01 FOR MARCH WITH A 02 GAIN EXCLUDING FOOD AND ENERGY THE INFLATION NUMBERS ARE SUPPOSED TO BE OKAY SO WE SAW SOME SHORTCOVERING BEFORE THE REPORT SAID MARCELLO FRUSTACI A TRADER AT DAIWA SECURITIES AMERICA TOMORROW WILL BRING THE MARCH CONSUMERPRICE INDEX AND RETAILSALES REPORTS AND ON FRIDAY THE FEDERAL RESERVE WILL RELEASE FIGURES FOR MARCH INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION THE INFLATION NUMBERS ARE GOING TO BE SOMEWHAT POSITIVE FOR THE MARKET SUGGESTING THAT INFLATION IS NOT CURRENTLY A PROBLEM SAID STEVE WOOD DIRECTOR OF FINANCIAL MARKETS RESEARCH AT BA SECURITIES BUT THE MARKET IS FINDING IT DIFFICULT TO SUSTAIN A RALLY SO EVEN IF THEY ARE SUPPORTIVE IT DOESN'T SEEM LIKE THE MARKET WILL BE ABLE TO GO UP A WHOLE LOT HE WAS REFERRING TO PRICES WHICH RISE WHENEVER YIELDS FALL WITH THE MARKET CONCERNED ABOUT WHEN THE FEDERAL RESERVE WILL NEXT RAISE SHORTTERM INTEREST RATES TRADERS AND INVESTORS ARE LIKELY TO PUT GREAT STOCK IN THE RETAILSALES AND INDUSTRIALPRODUCTION REPORTS THE INFLATION REPORTS ARE VIEWED AS BACKWARD LOOKING WHILE THE RETAIL SALES AND INDUSTRIAL PRODUCTION DATA MAY PROVIDE CLUES AS TO WHERE INFLATION MAY BE HEADED PARTICIPANTS SAID UNFORTUNATELY FOR BOND HOLDERS THE RETAILSALES AND INDUSTRIALPRODUCTION FIGURES COULD PROVE TROUBLESOME FOR THE MARKET THEY ARE LIKELY TO BE ON THE STRONG SIDE MR WOOD SAID THERE IS ONE POTENTIAL POSITIVE LURKING AMID THE EXPECTED BAD NEWS FOR THE BOND MARKET THIS WEEK MANY ANALYSTS SAY THEY BELIEVE THE FED WILL ANNOUNCE TODAY OR TOMORROW THE PURCHASE OF TREASURYCOUPON SECURITIES TO ADDRESS A SEASONAL SHORTAGE OF RESERVES IN THE BANKING SYSTEM SUCH A MOVE WOULD BE PURELY TECHNICAL AND WOULD HAVE NO MONETARYPOLICY SIGNIFICANCE ANALYSTS SAID BUT WITH THE FED EXPECTED TO BUY 3 BILLION OR 4 BILLION OF SECURITIES DEALERS MAY BE A BIT MORE HESITANT TO AGGRESSIVELY SELL THE MARKET PLAYERS SAID 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 14 THE 13WEEK BILLS MATURE JULY 14 1994 AND THE 26WEEK BILLS MATURE OCT 13 1994 ONE MORE VOLATILE TRADING SESSION IN THE NEXT 90 DAYS WILL MEAN A 50 INCREASE IN FIXEDINCOME MARGIN REQUIREMENTS FOR CANADIAN INVESTMENT DEALERS AFTER TWO WEEKS OF HUGE MARKET SWINGS THE INVESTMENT DEALERS ASSOCIATION WHICH GOVERNS CAPITAL REQUIREMENTS FOR CANADA'S BROKERAGE FIRMS HAS SENT A BULLETIN PREPARING THE INDUSTRY FOR AN INCREASE IN THE CAPITAL NEEDED TO COLLATERALIZE LEVERAGEDBOND POSITIONS THE ASSOCIATION'S NOTICE SAID WE EMPHASIZE THAT THE SURCHARGE HAS NOT YET BEEN TRIGGERED HOWEVER IF CURRENT BOND PRICE VOLATILITY CONTINUES THEN IT IS LIKELY THAT THE SURCHARGE WILL BE IMPLEMENTED THE AMOUNT OF EXTRA MARGIN REQUIRED FROM INVESTMENT DEALERS WOULD DEPEND ON THEIR BOND POSITIONS BUT IDA VICEPRESIDENT FOR CAPITAL MARKETS IAN RUSSELL SAYS AN ADDITIONAL C100 MILLION US723 MILLION OR MORE WOULD LIKELY BE NEEDED MARKET PARTICIPANTS SAY THAT RAISING MARGINS MAY LEAD TO BOND SALES PARTICULARLY BY SMALLER CONCERNS THAT AREN'T OWNED BY MAJOR BANKS WHICH WOULD FURTHER DESTABILIZE THE MARKET HOWEVER MR RUSSELL SAYS THIS IS UNLIKELY AS MANY FIRMS HAVE SUBSTANTIAL EXCESS CAPACITY AND COULD MEET MARGIN CALLS SMALLER FIRMS TEND TO HAVE SMALLER POSITIONS THAT ARE CONCENTRATED IN HIGHLY LIQUID MONEY MARKETS AND LARGER FIRMS TEND TO BE HEDGED AND OVERCAPITALIZED SO THE SITUATION IS SERIOUS BUT NOT ONE I'M LOSING SLEEP OVER SAID GREG CLARKE THE ASSOCIATION'S VICE PRESIDENT FOR MEMBER REGULATION LATE YESTERDAY THE BENCHMARK 65 COUPON CANADIAN GOVERNMENT BOND MATURING IN 2004 HAD DROPPED 40 CENTS TO 8945 TO YIELD 802 COMPARED WITH 804 ON FRIDAY IDA STANDARDS FOR VOLATILITY ARE SET BY PRICE MOVES IN SHORTTERM MEDIUMTERM AND LONGTERM GOVERNMENT OF CANADA DEBT MR CLARKE SAYS VOLATILITY GREATER THAN THE MARGIN REQUIREMENT VIOLATES THE IDA'S GUIDELINE AND IF FOUR VIOLATIONS TAKE PLACE IN ANY ONE CATEGORY OF BONDS OVER A 90DAY PERIOD THEN MARGINS RISE BY 50 FOR ALL FIXEDINCOME HOLDINGS INCLUDING PROVINCIAL MUNICIPAL AND CORPORATE BONDS A PRICE MOVE OF MORE THAN 4 IN THE PRICE OF THE CANADIAN GOVERNMENT 10YEAR NOTE DURING ANY FIVEDAY PERIOD FOR EXAMPLE WOULD TRIGGER THE INCREASED MARGIN REQUIREMENT RIGHT NOW MARGIN REQUIREMENTS ON DEBT SECURITIES RANGE FROM 1 OF FACE VALUE FOR GOVERNMENT BONDS WITH MATURITIES LESS THAN THREE YEARS TO 10 OF FACE VALUE FOR CORPORATE BONDS WITH MATURITIES GREATER THAN SEVEN YEARS IF ADDITIONAL VOLATILITY FORCES THE IDA TO RAISE THE STANDARD MARGIN REQUIREMENTS WOULD RISE TO 15 FOR SHORTTERM GOVERNMENT BONDS AND 15 FOR LONGTERM CORPORATE BONDS PT ALATIEF FREEPORT FINANCE CO BV A UNIT OF FREEPORTMCMORAN COPPER & GOLD INC WAS EXPECTED TO PRICE A 120 MILLION OFFERING OF SEVENYEAR SENIOR NOTES THROUGH LEAD MANAGER CS FIRST BOSTON LATE YESTERDAY THAT WAS THE ONLY CORPORATEDEBT PRICING EXPECTED YESTERDAY AS ISSUANCE REMAINED LOW AHEAD OF THE RELEASE OF ECONOMIC DATA WHILE SOME MARKET PARTICIPANTS SAY SUBDUED PRODUCERPRICE INDEX OR CONSUMERPRICE INDEX REPORTS COULD HELP RALLY THE BOND MARKETS OTHERS WERE SKEPTICAL NONCALLABLE NOTES OF PT ALATIEF A FINANCE UNIT ARE GUARANTEED BY FREEPORTMCMORAN COPPER & GOLD AND ARE RATED BA2 BY MOODY'S INVESTORS SERVICE AND DOUBLEBPLUS BY STANDARD & POOR'S ELSEWHERE TRADING IN THE INVESTMENTGRADE MARKET PERKED UP A LITTLE ALTHOUGH SPREADS REMAINED MOSTLY UNCHANGED FROM FRIDAY TRADERS SAID IN THE JUNKBOND MARKET TRADING ALSO WAS LIGHT WITH PRICES UNCHANGED SEPARATELY AFTER SEVERAL POSTPONEMENTS THE NATIONAL ASSOCIATION OF SECURITIES DEALERS FIXED INCOME PRICING SYSTEM BEGAN OPERATING THE SYSTEM WAS DEVELOPED IN RESPONSE TO SECURITIES AND EXCHANGE COMMISSION CONCERNS ABOUT THE TRANSPARENCY OF PRICING IN THE HIGHYIELD SECONDARY MARKET IT IS INTENDED TO FACILITATE QUOTE DISPLAY TRADE REPORTING DISSEMINATION OF TRADE INFORMATION AND SCREENBASED NEGOTIATION NEWISSUE ACTION IS HEATING UP IN THE MUNICIPALBOND MARKET AFTER LAST WEEK'S LULL IN THE SECONDARY MARKET PRICES CLIMBED AS TRADERS AWAITED TODAY'S REPORT OF THE MARCH PRODUCERPRICE INDEX THE FLORIDA BOARD OF EDUCATION'S 5125 BONDS DUE 2022 WERE ABOUT 3/8 POINT HIGHER AT 84 5/8 IN LATE TRADING YIELDING 627 MUNIS WERE GENERALLY 3/8 TO 1/2 STRONGER AT THE CLOSE AS FOR THE NEW ISSUES HARRIS COUNTY TEXAS 1992 MILLION SERIES 1994A TOLLROAD UNLIMITEDTAX AND SUBORDINATELIEN REVENUE BONDS WERE PRICED BY A DILLON READ GROUP DEMAND WAS STRONG ENOUGH FOR THE SIZE OF THE ISSUE TO BE RAISED TO 2342 MILLION YIELDS RANGE FROM 570 FOR ZEROCOUPON BONDS DUE IN 2001 TO 640 FOR CURRENTINTEREST BONDS DUE IN 2020 THE ISSUE IS ALL SOLD DILLON READ SAID KING COUNTY WASH 170 MILLION SERIES A OF 1994 IMPROVEMENT BONDS WERE WON BY A CS FIRST BOSTON GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 6349 YIELDS RANGE FROM 300 IN 1995 TO 640 IN 2034 THERE WAS AN UNSOLD BALANCE OF ONLY 108 MILLION IN LATE TRADING CS FIRST BOSTON SAID MORE THAN 2 BILLION OF NEW SUPPLY IS EXPECTED TO BE PRICED THIS WEEK IF MUNIS REMAIN STRONG NEW OFFERINGS SCHEDULED FOR PRICING TUESDAY INCLUDE CHARLOTTE NC 162 MILLION SERIES 1994 IMPROVEMENT BONDS AND SEMINOLE COUNTY FLA 82 MILLION SCHOOL DISTRICT CERTIFICATES OF PARTICIPATION ALTHOUGH MOST OF THE MORTGAGE MARKET HAS LATELY BEATEN TREASURYS REGULARLY ONE SECTOR IS SUFFERING AND SEEMS UNLIKELY TO IMPROVE SOON THAT'S THE PRIMARY MARKET WHERE UNDERWRITERS CARVE UP EXISTING MORTGAGE SECURITIES INTO COLLATERALIZED MORTGAGE OBLIGATIONS ACCORDING TO A REPORT RELEASED YESTERDAY BY SECURITIES DATA THE NEWARK NJ RESEARCHER WEEKLY CREATION OF CMOS REACHED A 15MONTH LOW LAST WEEK PRIMARY DEALINGS MEANWHILE WERE SLOW AS THE MARKET AWAITS INFLATION DATA PRICES FINISHED MARGINALLY HIGHER BOND BANKS OFFERED ONLY 17 BILLION IN NEW CMO BONDS IN THE WEEK ENDED APRIL 9 ACCORDING TO THE RESEARCHER DOWN FROM 42 BILLION IN THE PREVIOUS WEEK AND 46 BILLION IN THE YEARAGO PERIOD CMO CREATION IS OFTEN THE DRIVING FORCE BEHIND THE MORTGAGE SECTOR THE DEALS SEEK TO SATISFY A WIDE VARIETY OF REQUIREMENTS FROM DEBT INVESTORS THE FIRM'S RESEARCHERS CITE THE DROP IN TREASURY PRICES AND LOSSES BY ASKIN CAPITAL MANAGEMENT THE NEW YORK INVESTMENT FIRM RUN BY DAVID ASKIN AS FACTORS THAT HAVE SLOWED CMO CREATION MEANWHILE GINNIE MAE 8S FOR APRIL WERE UP 3/32 AT 100 7/32 IN LATE TRADING FREDDIE MAC GOLD 8S FOR APRIL WERE UP 2/32 AT 100 18/32 AND FANNIE MAE 8S FOR APRIL WERE UP 2/32 AT 100 13/32 9404120134 940412 PEPPERAND SALT COME FROM OUR FOES RETURN TO SENDER MEN NO LONGER HIDE BEHIND WOMEN'S SKIRTS BUT THEN NEITHER DO WOMEN 9404120133 940412 RAWSTEEL PRODUCTION ROSE 01 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 01 LAST WEEK TO 1899000 TONS FROM 1898000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 63 FROM THE 1787000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 909 OF ITS CAPABILITY LAST WEEK AND IN THE PREVIOUS WEEK IT USED 845 OF ITS CAPABILITY IN THE YEARAGO WEEK THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9404120132 940412 RESIDENTS OF SOUTH ORANGE NJ WON'T LEAVE HOME WITHOUT IT BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL AS IF THERE WEREN'T ALREADY ENOUGH CREDIT CARDS A SMALL TOWN IN NORTHERN NEW JERSEY IS ABOUT TO COME FORTH WITH YET ANOTHER ENTRY THE SOUTH ORANGE CARD FOLLOWING THE LEAD OF AUTOMOBILE AIRLINE COMPUTER AND TELEPHONE COMPANIES THE TOWN OF SOUTH ORANGE WILL SOON ENTER THE COMPETITIVE CREDITCARD BUSINESS BOTH TO EARN MONEY AND TO ENHANCE CIVIC PRIDE AMONG ITS 17500 RESIDENTS ALSO SINCE THE CARD MAY EVENTUALLY ENTITLE HOLDERS TO DISCOUNTS IN LOCAL STORES TOWN LEADERS HOPE IT WILL GIVE RETAILERS A BOOST WHENEVER YOU USE THE CARD SOUTH ORANGE WILL GET A CUT SAYS MICHAEL MCCARTHY THE PRESIDENT OF THE LOCAL CHAMBER OF COMMERCE WHO THINKS THE CARD WILL CATCH ON BIG I'M GETTING A CARD AND SO IS MY WIFE THAT'S TWO WILLIAM CALABRESE A PHARMACIST AND PRESIDENT OF THE SOUTH ORANGE BOARD OF TRUSTEES BELIEVES SO STRONGLY IN THE CARD THAT HE PLANS TO MARKET IT BOTH OVER THE COUNTER AND IN A DOORTODOOR SALES CAMPAIGN UNDERTAKEN WITH THE HELP OF COLLEGE STUDENTS WE'RE GOING TO HIT EVERYONE HE SAYS WE WANT EVERYONE TO KNOW THAT THIS CARD IS SOMETHING SPECIAL THE CARD MAY ALSO OFFER A DEGREE OF SNOB APPEAL THE CARD WILL NOT BE AVAILABLE TO PEOPLE WHO DON'T LIVE HERE BRAGS ROY DIETRICH THE OWNER OF CHEAPSKATES PLUS THE TOWN'S LARGEST BICYCLE SHOP BUSINESSPEOPLE IN NEIGHBORING TOWNS ARE NOT IMPRESSED INDEED RUSSELL BARLING THE CHAMBER OF COMMERCE PRESIDENT IN NEARBY WEST ORANGE WARNS THAT WEST ORANGE STORES MAY NOT ACCEPT THE SOUTH ORANGE CARD I DON'T THINK THE LOCAL BUSINESSPEOPLE HERE WILL BE TOO HAPPY WITH IT HE SAYS WHERE WILL IT ALL LEAD MR BARLING SUGGESTS THAT THE SOUTH ORANGE CARD COULD LEAD TO THE WEST ORANGE CARD AND PERHAPS ALSO AN EAST ORANGE CARD WITH 567 NEW JERSEY MUNICIPALITIES MR DIETRICH SAYS THE IMPLICATIONS ARE MAJOR IF EVERY COMMUNITY TRIED TO HAVE THEIR OWN CARD IT WOULDN'T BE A CATASTROPHE HE SAYS BUT IT MAY MEAN THAT PEOPLE WILL TEND TO SHOP ONLY IN THEIR OWN TOWN BUT WHILE LOCAL OFFICIALS BELIEVE THE CARD HAS POTENTIAL LOCAL BANKS ARE NOT SO SURE MR CALABRESE HAD TO GO ALL THE WAY TO NEWARK DELAWARE THAT IS TO FIND A BANK WILLING TO SPONSOR THE CARD NAMELY THE MBNA AMERICA BANK SAYS JAMES YOUNG THE PRESIDENT OF THE STATE BANK OF SOUTH ORANGE THE NEW JERSEY BANKS DID NOT SEEM INTERESTED 9404120131 940412 SAFETY FIRST HOW A DEVICE TO AID IN BREAST SELFEXAMS IS KEPT OFF THE MARKET OTHER NATIONS APPROVED IT BUT US DEMANDS PROOF SIMPLE PAD ISN'T RISKY NINEYEAR BATTLE WITH FDA BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL IT IS ABOUT AS SIMPLE AS A MEDICAL DEVICE CAN GET TWO SEALED PLASTIC SHEETS WITH LUBRICANT IN BETWEEN IT IS LAID OVER A WOMAN'S BREAST LIKE A CLOTH DURING AN EXAMINATION TO REDUCE FRICTION GLENDA RICHARDSON THINKS IT PROBABLY SPARED HER DEATH FROM BREAST CANCER JOHN WITHERS A SURGEON AT THE MAUI CLINIC IN HAWAII SAYS IT IS ONE OF THE MOST EFFECTIVE WEAPONS AGAINST BREAST CANCER IN YEARS AND PATRICIA REDMOND A NEW YORK RADIOLOGIST SAYS IT CAN ABSOLUTELY SAVE LIVES BUT DON'T TRY BUYING IT IN THE US THOUGH MANY DOCTORS AND CANCER SPECIALISTS HAIL THE SENSOR PAD AS A USEFUL TOOL IN DETECTING THE DISEASE THAT MANY WOMEN FEAR MOST AND THOUGH IT YEARS AGO SAILED THROUGH APPROVAL PROCESSES IN COUNTRIES IN EUROPE AND ASIA THE FOOD AND DRUG ADMINISTRATION WON'T LET INVENTIVE PRODUCTS INC SELL IT IN THIS COUNTRY GRANT WRIGHT THE PRESIDENT OF INVENTIVE PRODUCTS AND HIS FATHER EARL THE PAD'S COINVENTOR HAVE BEEN FIGHTING FOR NINE YEARS TO GET CLEARANCE FOR THE PRODUCT WHAT BEGAN AS AN FDA REQUEST FOR MORE INFORMATION HAS DEGENERATED INTO A LONG DEBILITATING STRUGGLE AND ALLEGATIONS THAT THE WRIGHTS VIOLATED FEDERAL LAW SO FRUSTRATED DID THE WRIGHTS BECOME ABOUT THE BUREAUCRATIC MAZE THAT SIX YEARS AGO THEY STARTED SELLING THE PAD TO US HOSPITALS WITHOUT FDA CLEARANCE THAT TRIGGERED A COURT BATTLE THAT THEY LOST IN 1992 NOW THEY ARE BACK TO TRYING TO WIN FDA BLESSING FOR THE PAD BUT IF THE DISPUTE ISN'T RESOLVED SOON GRANT WRIGHT SAYS HE WILL CLOSE HIS DECATUR ILL COMPANY WHICH COSTS ABOUT 4000 A MONTH TO OPERATE AND HAS ALREADY BURNED THROUGH 356000 IN LEGAL FEES I'M 33 WITH A WIFE AND THREE KIDS HE SAYS I'VE GOT TO DO SOMETHING WITH MY LIFE MR WRIGHT'S STRUGGLE IN THE EYES OF SOME IS MORE THAN JUST THE TALE OF A SMALLTOWN ENTREPRENEUR'S TANGLE WITH FARAWAY BUREAUCRATS IT IS MORE TOO THAN A STUDY OF HOW THE MEDICALDEVICES INDUSTRY IN THE US COPES WITH THE WORLD'S MOST STRINGENT REGULATORY SYSTEM TO SOME ADVOCATES OF HIS SIMPLE DEVICE IT IS A MANIFESTATION OF THE WAY THE NATION'S LITIGATIONDRIVEN AVERSION TO RISK CAN STIFLE INNOVATION IN THE MEDICAL MARKETPLACE WE AS A SOCIETY REFUSE TO TAKE RISKS AND WANT 100 GUARANTEES THAT OUR LIVES ARE GOING TO BE PERFECT SAYS MARY PALMORE A CHICAGO GYNECOLOGIST DR PALMORE ACKNOWLEDGES THAT THE FDA HAS A LEGAL DUTY TO ENSURE THAT THE PAD ISN'T FALSELY PROMOTED AS A DIAGNOSTIC TOOL BUT SUGGESTS THAT THE AGENCY ITSELF MAY BE CAUGHT UP IN WHAT SHE SEES AS A NATIONAL OBSESSION WITH SAFETY THE FDA IS CONCERNED THAT IN OUR LITIGIOUS SOCIETY A WOMAN WILL SAY I USED IT AND I GOT CANCER ANYWAY' DR PALMORE SAYS THE AGENCY SAYS THAT SAFETY NOT LITIGATION IS ITS MAIN CONCERN AND IT STRONGLY DEFENDS ITS REFUSAL TO AUTHORIZE THE SENSOR PAD THEIR INTENTION IS VERY WORTHY SUSAN ALPERT DIRECTOR OF THE FDA'S OFFICE OF DEVICE EVALUATION SAYS OF THE WRIGHTS BUT THE ISSUE FOR THE AGENCY IS OF ENSURING THAT WE DON'T ALLOW TO MARKET ANY DEVICE THAT POSES SIGNIFICANT RISK WITHOUT AN ATTENDANT BENEFIT INDEED MANY CONSUMER ADVOCATES AND HEALTHCARE SPECIALISTS APPLAUD THE FDA'S RIGOR IN SCREENING DEVICES AND SOME COMPLAIN THAT IT DOESN'T ACT FORCEFULLY ENOUGH THE FDA MEANWHILE FACES A HUGE BACKLOG OF APPLICATIONS FOR NEW MEDICAL DEVICES WHICH HAS STRETCHED THE AVERAGE REVIEW TIME TO 196 DAYS THE AGENCY SAYS IT IS WORKING HARD TO WHITTLE THE BACKLOG OF MORE THAN 5000 APPLICATIONS BREAST CANCER TOOK AN ESTIMATED 46000 LIVES IN THE US LAST YEAR AND WAS THE SECONDBIGGEST CANCER KILLER OF WOMEN EARLY DETECTION IS ESSENTIAL IN DEFEATING IT AND FREQUENT SELFEXAMINATION IS ESSENTIAL TO THAT EFFORT BUT MANY WOMEN DON'T FIND THIS EASY AND THAT IS WHERE THE PAD COMES IN ITS LOWER SHEET CLINGS TO THE SKIN WHILE THE TOP SHEET FLOATS ON A THIN LAYER OF LIQUID SILICON ELIMINATING FRICTION SO A FINGER CAN EXPLORE THE CONTOURS OF AN OBJECT AS SMALL AS A GRAIN OF SALT THE THING THAT AMAZES ME SAYS THE YOUNGER MR WRIGHT IS THAT THE RESEARCH SPENDING ON BREAST CANCER KEEPS GOING UP AND I CAN'T GET THIS SIMPLE 7 PRODUCT INTO THE HANDS OF WOMEN WHO WANT IT HIS FATHER EARL ONCE THOUGHT THE SENSOR PAD WOULD BE A BIG SUCCESS MR WRIGHT 63 IS AN ESTABLISHED INVENTOR WHOSE PRODUCTS RANGE FROM A BLOODSERUM FILTER USED IN LABORATORIES TO NONAEROSOL FOAMING PUMPS USED BY HOSPITAL SURGEONS MR WRIGHT IN 1986 SET UP INVENTIVE PRODUCTS AS A SUBSIDIARY OF HIS EARL WRIGHT CO SOLELY TO MAKE AND MARKET THE SENSOR PAD HE PUT HIS SON IN CHARGE GAINING APPROVAL TO SELL IT IN OTHER COUNTRIES WASN'T A PROBLEM INVENTIVE PRODUCTS APPLIED FOR MARKETING AUTHORIZATION IN CANADA IN 1985 AND GOT IT WITHIN 30 DAYS GRANT WRIGHT SAYS HE ALSO SAYS THE PAD HAS BEEN APPROVED IN JAPAN SINGAPORE KOREA THAILAND AND MOST WEST EUROPEAN COUNTRIES ALTHOUGH INVENTIVE PRODUCTS HASN'T ACTIVELY PROMOTED IT ABROAD WE'VE HAD NO PROBLEMS ANYWHERE IN THE WORLD HE SAYS EXCEPT AT HOME WHEN THE WRIGHTS SOUGHT FDA CLEARANCE FOR THE DEVICE IN 1985 THE AGENCY'S INITIAL RESPONSE WAS POSITIVE STILL THE GOVERNMENT WANTED MORE INFORMATION EVERY TIME WE SUBMITTED INFORMATION THEY ASKED FOR MORE THE SON RECALLS AFTER SEVERAL MONTHS THE AGENCY DENIED APPROVAL FOR THE PAD BUT INDICATED ITS CONCERNS MIGHT BE MET BY EXTENSIVE LABELING CHANGES THE FDA WANTED THE LABELING TO STATE THAT THE SENSOR PAD COULD BE SOLD BY PRESCRIPTION ONLY AND IT WANTED ALL REFERENCES TO BREAST CANCER DELETED THE LABEL WAS TO INCLUDE THE CHEMICAL COMPOSITION OF THE DEVICE IT ALSO WAS TO DESCRIBE THE 10INCHDIAMETER PAD'S SUSCEPTIBILITY TO HEAT SUNLIGHT SOAP FORMALIN ALCOHOL AND OTHER MECHANICAL AGENTS MR WRIGHT SAYS HE IMMEDIATELY SET ABOUT COMPLYING WITH THE REQUESTS BUT ABOUT THREE MONTHS LATER HE SAYS THE FDA INEXPLICABLY NOTIFIED HIM THAT IT WOULDN'T RECONSIDER APPROVING THE PRODUCT INSTEAD HE WAS TOLD INVENTIVE PRODUCTS WOULD HAVE TO GO THROUGH A LABORIOUS PREMARKET APPROVAL PROCESS FOR NEW MEDICAL DEVICES THIS PROCESS IS MEANT TO KEEP NEW MOSTLY HIGHTECHNOLOGY INSTRUMENTS OFF THE MARKET UNTIL THEY CAN BE ADEQUATELY TESTED FOR SAFETY FEW PEOPLE WOULD DISAGREE THAT THE FDA SHOULD GET CONVINCING EVIDENCE THAT INVASIVE DEVICES ARE SAFE MORE THAN 200 PEOPLE DIED IN THE 1980S WHEN THEIR BJORKSHILEY HEART VALVES FRACTURED FOR INSTANCE BUT MR WRIGHT ARGUES THAT THE SENSOR PAD POSES NO DIRECT RISK TO USERS THE FDA RESPONDS THAT THE INDIRECT RISK THAT A CANCEROUS LUMP WOULD GO UNDETECTED IS POTENTIALLY LETHAL THE AGENCY'S DR ALPERT SAYS THE FACT THAT A DEVICE IS SIMPLE DOESN'T NECESSARILY MEAN IT IS BENIGN EVERYTHING DEPENDS ON ITS INTENDED USE SHE DISMISSES ENDORSEMENTS FROM DOCTORS AND PATIENTS WHICH SHE SAYS MANY DEVICE MAKERS TROT OUT AS ANECDOTAL EVIDENCE THAT IS INSUFFICIENT TO MAKE A SCIENTIFIC CASE REPORTING DOESN'T DO IT DATA DOES SHE SAYS IN 1992 ONLY 12 MEDICAL DEVICES WERE GIVEN FDA PREMARKET APPROVAL INCLUDING HEART PACEMAKERS LENSES THAT ARE IMPLANTED INTO THE EYE AFTER CATARACT SURGERY AND DEVICES FOR SMASHING KIDNEY STONES OF THE SIMPLE NONINVASIVE PAD I'VE NEVER SEEN A PRODUCT LIKE THIS HELD OFF THE MARKET SAYS JOHN ISAACS A GYNECOLOGIST IN EVANSTON ILL WHO IS THE AUTHOR OF A TEXTBOOK ON BREAST DISEASE BUT THE FDA SAYS THE SENSOR PAD NEEDS TO BE SCRUTINIZED BECAUSE IT ISN'T SUBSTANTIALLY EQUIVALENT TO A PRODUCT ALREADY ON THE MARKET A LEGAL REQUIREMENT FOR QUICK APPROVAL OF SIMPLE DEVICES THE WRIGHTS ARGUE THAT THE PAD IS SUBSTANTIALLY EQUIVALENT TO SOAP AND WATER A MIXTURE THE MEDICAL COMMUNITY HAS LONG RECOMMENDED TO REDUCE FRICTION IN BREAST SELFEXAMINATION TO OBTAIN PREMARKET APPROVAL THE FDA SAID INVENTIVE PRODUCTS WOULD HAVE TO CONDUCT EXHAUSTIVE CLINICAL TESTS ON WOMEN COMPARING THE NUMBER OF BREASTCANCER CASES DETECTED THROUGH SELFEXAMINATION WITH AND WITHOUT THE SENSOR PAD SUCH TESTS MR WRIGHT SAYS WOULD REQUIRE A HUGE SAMPLE A MINIMUM OF 82000 WOMEN TO PRODUCE STATISTICALLY MEANINGFUL RESULTS AN FDA SPOKESWOMAN DISPUTES THAT FIGURE WE WANT TO BE AS REASONABLE AS WE CAN SHE SAYS THE NUMBER WILL BE MUCH LESS THAN THAT MR WRIGHT SAYS HE HAS ALREADY DONE TWO TRIALS WITH SIMULATED BREAST MODELS WHICH HE CLAIMS YIELD MORE ACCURATE RESULTS IN THE FIRST WOMEN EXAMINED THE ARTIFICIAL BREASTS FOR LUMPS USING BOTH THE PAD AND THEIR BARE HANDS IN THE SECOND THEY USED BOTH THOSE METHODS AND ALSO A THIRD METHOD SOAP AND WATER ON THEIR HANDS THE TESTS SHOWED THAT THE PAD ENHANCED SENSITIVITY AND RESULTED IN INCREASED LUMP DETECTION MR WRIGHT SAYS THE FDA REJECTED HIS TRIALS AS INSUFFICIENT THE PROSPECT OF STARTING OVER WITH THE LENGTHY EXPENSIVE TESTS THE FDA DEMANDED PUSHED THE WRIGHTS TO CHANGE THEIR COURSE BECAUSE THEY NEVER CONSIDERED THE PAD TO BE A MEDICAL DEVICE AS DEFINED BY FEDERAL LAW THEY DECIDED IN 1988 TO MARKET THE PRODUCT DIRECTLY TO HOSPITALS THE WRIGHTS SAY THEYAND THEIR ATTORNEYFIGURED THE FDA EITHER WOULD RECOGNIZE ITS LACK OF JURISDICTION OR TAKE INVENTIVE PRODUCTS TO COURT AND FORCE THE ISSUE OVER 15 MONTHS THE WRIGHTS SOLD 250000 PADS TO SOME 200 HOSPITALS BUT IN APRIL 1989 FEDERAL AGENTS RAIDED THE COMPANY'S DECATUR PLANT AND A NUMBER OF HOSPITALS AND CONFISCATED THE PADS THE ACTION CAME ONE DAY AFTER EARL WRIGHT WAS NAMED A FINALIST IN THE INTELLECTUAL PROPERTY OWNERS FOUNDATION'S INVENTOROFTHEYEAR CONTEST FOR HIS TOUCHENHANCING DEVICE GRANT WRIGHT CHALLENGED THE FDA'S CLAIM TO JURISDICTION OVER THE PAD BUT IN 1990 A US DISTRICT COURT IN DANVILLE ILL RULED FOR THE FDA MR WRIGHT APPEALED AND TWO YEARS LATER AN APPELLATE COURT IN CHICAGO UPHELD THE RULING AT THAT POINT INVENTIVE PRODUCTS TOLD THE FDA IT HAD CEASED MARKETING THE PAD BUT MR WRIGHT DIDN'T GIVE UP IN MARCH 1992 HE FILED AN ETHICS COMPLAINT WITH THE FDA'S INTEGRITY OFFICE AGAINST SOME AGENCY OFFICIALS AFTER LEARNING THAT THEY HAD MET WITH A MINORITY SHAREHOLDER OF THE COMPANY WITHOUT HIS KNOWLEDGE AFTER HE FILED THE COMPLAINT HE SAYS THE FDA TURNED HOSTILE AT A MEETING IN WASHINGTON IN AUGUST 1992 TO DISCUSS REQUIREMENTS FOR PREMARKET APPROVAL HE SAYS AN FDA LAWYER FLANKED BY 10 OTHER AGENCY OFFICIALS AND A JUSTICE DEPARTMENT LAWYER TOLD US WE'D NEVER GET OUR PRODUCT TO MARKET AN AGENCY SPOKESWOMAN SAYS IT IS DOUBTFUL SUCH A REMARK WAS MADE WE HAVE GONE OUT OF OUR WAY TO SHOW THE WRIGHTS HOW TO GET THEIR PRODUCT MARKETED SUCH A COMMENT DOESN'T MAKE SENSE SHE SAYS MR WRIGHT PROMPTLY FIRED OFF LETTERS OF COMPLAINT ABOUT THE MEETING TO THE FDA AND TO REP JOHN DINGELL OF MICHIGAN WHO IS KNOWN FOR FLAILING THE FDA FOR ITS MISSTEPS MORE LETTERS FLEW BACK AND FORTH AN FDA INTEGRITY OFFICER WROTE THAT THE FDA WAS ACTING IN GOOD FAITH MR WRIGHT RESPONDED BY DEMANDING AN INVESTIGATION OF THE FDA LAWYER WHO ATTENDED THE AUGUST MEETING A COUPLE OF DAYS LATER HIS WASHINGTON LAWYER SENT A SEVENPAGE LETTER TO A DINGELL STAFFER ACCUSING THE FDA OF HOUNDING INVENTIVE PRODUCTS FOUR MONTHS LATER THE WRIGHTS RECEIVED NOTICE FROM AN FDA COMPLIANCE OFFICER THAT THE AGENCY WAS INVESTIGATING THEM FOR POSSIBLE VIOLATIONS OF FEDERAL LAW FOR SELLING THE PAD IN 199091 MR GRANT SAYS HE HAS RECEIVED NO WORD ABOUT THE INVESTIGATION SINCE AN FDA ADMINISTRATIVE HEARING IN CHICAGO LAST JUNE BUT HE SAYS HE HAS GOTTEN THE MESSAGE IF YOU SQUAWK THEY WILL SLAP YOU AROUND THE FDA DENIES TAKING ANY RETALIATORY ACTIONS MEANWHILE MEMBERS OF THE MEDICAL COMMUNITY CONTINUE TO SUPPORT THE SENSOR PAD DR WITHERS THE SURGEON AT MAUI CLINIC SAYS THE PAD HAS TWICE ENABLED HIM TO FEEL OTHERWISE UNDETECTABLE LUMPS HE SCOFFS AT THE IDEA THAT USING IT MIGHT GIVE WOMEN A FALSE SENSE OF SECURITY ONE OF THE FDA'S MAIN CONCERNS THERE IS NO QUESTION THAT THE SENSOR PAD INCREASES MY TACTILE ABILITY HE SAYS IT MAKES IT 100 EASIER GALE KATTERHAGEN MEDICAL DIRECTOR OF THE CANCER CENTER AT ST JOSEPH MEDICAL CENTER IN BURBANK CALIF SAYS TESTS HE CONDUCTED FOR INVENTIVE PRODUCTS SEVERAL YEARS AGO INDICATED THAT WOMEN WHO USED THE PAD WERE 22 MORE LIKELY TO PERFORM MONTHLY BREAST EXAMS THIS DEVICE IS HARMLESS DR KATTERHAGEN SAYS WOMEN WHO USE THE PAD SWEAR BY IT MS RICHARDSON A 43YEAROLD DECATUR RESIDENT DOUBTS THAT SHE WOULD HAVE FOUND TWO SMALL LUMPS WITHOUT THE PAD SHE HAD A DOUBLE MASTECTOMY IT PROBABLY SAVED MY LIFE SHE SAYS ADDING THAT SHE GAVE ONE TO HER 19YEAROLD DAUGHTER MARY GORMAN A 55YEAROLD WRITER IN WASHINGTON IS CERTAIN THE PAD SAVED HER BREAST I FOUND MY CANCER BEFORE IT WAS DETECTABLE ON A MAMMOGRAM SHE SAYS HER SURGEON KATHERINE ALLEY SAYS THE DEVICE MAY HAVE SAVED MS GORMAN'S LIFE CONSIDERING THE LETHALITY OF BREAST CANCER DR ALLEY SAYS IT IS JUST RIDICULOUS TO KEEP THE PAD OFF THE MARKET POTENTIAL DEMAND APPEARS TO BE HUGE WHEN A PITTSBURGH HOSPITAL OFFERED ON LOCAL TV IN 1990 TO SEND OUT FREE SAMPLES IT WAS FLOODED WITH 36000 CALLS AND LETTERS FOR ALL THAT THE FDA'S DR ALPERT BELIEVES THAT INVENTIVE PRODUCTS IS LARGELY RESPONSIBLE FOR THE DELAYS IT HAS ENCOUNTERED THERE ARE LOTS OF DIFFERENT KINDS OF TRIALS THEY COULD DO TO SHOW THIS IS EFFECTIVE SHE SAYS IT DOESN'T HAVE TO BE YEARS AND YEARS THE ELDER MR WRIGHT HAS MANAGED TO COMMERCIALIZE THE SENSOR PAD'S ANTIFRICTION TECHNOLOGY FOR A MUCH SMALLER MARKET HE HAS BUILT THE SLIPP A NYLON AND PLASTIC SHEET USED IN HOSPITALS TO TRANSFER PATIENTS FROM A GURNEY TO A BED ABOUT 500 HAVE BEEN SOLD BUT HIS SON SPENDS MUCH OF HIS TIME IN HIS NEARLY EMPTY HEADQUARTERS EXPLAINING TO DOCTORS WHY HE CAN'T SEND THEM SAMPLES OF THE SENSOR PAD LAST YEAR HE LAID OFF HIS OWN BROTHER REDUCING HIS WORK FORCE TO HIMSELF AND HIS SECRETARY FROM A PEAK OF 28 SIX YEARS AGO WE'RE AT THE POINT OF SURRENDER HE SAYS 9404120130 940412 WHO'S NEWS JAN BELL MARKETING INC JAN BELL MARKETING INC SUNRISE FLA PETER J HAYES 51 YEARS OLD HAS BEEN NAMED PRESIDENT CHIEF OPERATING OFFICER AND BOARD MEMBER OF THIS JEWELRY WHOLESALER MR HAYES RESIGNED FROM HIS POSITION AS PRESIDENT OF FAMILY DOLLAR STORES INC TO TAKE THE NEW POSITION AT JAN BELL THE PRESIDENT'S POST WAS PREVIOUSLY HELD BY ALAN LIPTON WHO WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE THE CHIEF OPERATING OFFICER POSITION WAS HELD BY JOHN FULLER WHO WILL REMAIN IN OPERATIONS 9404120129 940412 WHO'S NEWS WELLCOME PLC WELLCOME PLC LONDON DAVID W BARRY 50 YEARS OLD RESEARCH DIRECTOR AT THIS PHARMACEUTICAL COMPANY'S US UNIT AND AN EXECUTIVE DIRECTOR OF THE PARENT WAS NAMED HEAD OF GLOBAL RESEARCH AND DEVELOPMENT OPERATIONS FOR THE PARENT TREVOR JONES HEAD OF UK RESEARCH WILL ASSUME AN ASSIGNMENT ADVISING CHAIRMAN AND CHIEF EXECUTIVE JOHN ROBB ON STRATEGIC MATTERS THE CHANGES TAKE EFFECT AT THE BEGINNING OF NEXT MONTH 9404120128 940412 ICH SEEKS NAME CHANGE LOUISVILLE KY ICH CORP SAID IT WILL ASK SHAREHOLDERS TO APPROVE CHANGING ITS NAME TO SOUTHWESTERN LIFE CORP AT ITS ANNUAL MEETING THE FLAGSHIP OF THE HOLDING COMPANY IS DALLASBASED SOUTHWESTERN LIFE INSURANCE CO ICH SAID THE CHANGE UNDERSCORES ITS RECENT SHIFT TOWARD FOCUSING ON ITS INSURANCE BUSINESSES THE COMPANY EMPHASIZED THAT ITS INSURANCE SUBSIDIARIES WOULD CONTINUE CONDUCTING BUSINESS UNDER THEIR EXISTING NAMES THE DATE OF THE ANNUAL MEETING HASN'T BEEN SET 9404120127 940412 CORRECTIONS & AMPLIFICATIONS THE US GOVERNMENT WILL RELEASE ESTIMATES OF FIRSTQUARTER GROSS DOMESTIC PRODUCT APRIL 28 NOT MAY 27 AS WAS REPORTED IN YESTERDAY'S CREDIT MARKETS COLUMN THE PRELIMINARY REVISION OF THE FIRSTQUARTER GDP WILL BE RELEASED MAY 27 AGCO CORP IS BASED IN NORCROSS GA BASED ON INFORMATION PROVIDED BY THE NEW YORK STOCK EXCHANGE THE COMPANY'S LOCATION WAS MISSTATED IN YESTERDAY'S NEW STOCK LISTINGS COLUMN JOSIE ESQUIVEL IS A SECURITIES ANALYST FOR LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO IN AN ARTICLE YESTERDAY ABOUT ANALYSTS' EARNINGS ESTIMATES FOR ATHLETICSHOE MANUFACTURERS MS ESQUIVEL'S FIRM WAS INCORRECTLY IDENTIFIED 9404120125 940412 SEAGRAM CO ACQUISITION MONTREAL SEAGRAM CO A LIQUOR AND BEVERAGE CONCERN ACQUIRED 20 OF ROTHBURY WINES LTD OF AUSTRALIA MAKING SEAGRAM THE COMPANY'S LARGEST SHAREHOLDER A SEAGRAM OFFICIAL WILL JOIN ROTHBURY'S BOARD IN EXCHANGE FOR ITS EQUITY POSITION SEAGRAM CEDED CONTROL OF ITS SALTRAM WINE ESTATES UNIT TO ROTHBURY THE UNIT BASED IN BAROSSA VALLEY SOUTH AUSTRALIA IS ONE OF AUSTRALIA'S LEADING PRODUCERS OF WINE FURTHER TERMS WEREN'T DISCLOSED 9404120124 940412 FIFTH THIRD BANCORP UNIT'S PACT CINCINNATI MIDWEST PAYMENT SYSTEMS SIGNED A CONTRACT TO PROVIDE ELECTRONIC FUNDS TRANSFER SERVICES TO HIBERNIA NATIONAL BANK MIDWEST PAYMENT IS A UNIT OF FIFTH THIRD BANCORP'S FIFTH THIRD BANK HIBERNIA NATIONAL BANK IS A UNIT OF HIBERNIA CORP FINANCIAL TERMS WEREN'T DISCLOSED MIDWEST PAYMENT SAID IN A NEWS RELEASE THAT UNDER THE PACT IT WILL PROVIDE COMPREHENSIVE ELECTRONIC FUNDS TRANSFER TRANSACTION SERVICES FOR HIBERNIA'S 103 AUTOMATED TELLER MACHINES AND TO HIBERNIA'S ABBY NETWORK 9404120123 940412 INTERNATIONAL AT&T GROUP BRITISH TELECOM TO DEVELOP A EUROPEAN SYSTEM LONDON A GROUP OF ABOUT 30 MULTINATIONAL COMPANIES PICKED TWO SUPPLIERS BRITISH TELECOMMUNICATIONS PLC AND AN ALLIANCE LED BY AMERICAN TELEPHONE & TELEGRAPH CO TO START DEVELOPING A NOVEL EUROPEAN PHONE SERVICE THE GROUP INCLUDING RANK XEROX AND IMPERIAL CHEMICAL INDUSTRIES PLC IS TRYING TO SET UP A CUSTOMIZED EUROPEAN NETWORK TO CARRY THE VOICE TELEPHONE CALLS OF EMPLOYEES CUSTOMERS AND SUPPLIERS THE SERVICE MAY EVENTUALLY HANDLE 150 MILLION OF CALLS A YEAR CHIEFLY IN EIGHT EUROPEAN NATIONS ACCORDING TO PHILIP BARTON THE GROUP'S SECRETARY AND ICI'S TELECOMMUNICATIONS MANAGER A COMPETITION TO SET UP A TRIAL SYSTEM ENDED WITH TWO WINNERS BT AND AN ALLIANCE OF AT&T AND UNISOURCE BV A JOINT VENTURE OF THE SWISS SWEDISH AND DUTCH STATEPHONE COMPANIES LATE THIS YEAR MR BARTON SAID THE GROUP WILL REVIEW THE TWO GROUPS' WORK AND CHOOSE ONE OR MORE LONGTERM SUPPLIERS FOR A PERMANENT SYSTEM BESIDES BT AND AT&TUNISOURCE COMPETING SUPPLIERS WERE USBASED SPRINT CORP CABLE & WIRELESS PLC OF BRITAIN AUSTRALIA'S TELSTRA CORP AND EUNETCOM SA A JOINT VENTURE OF FRANCE TELECOM AND DEUTSCHE BUNDESPOST TELEKOM THE SERVICE MODELED ON SIMILAR ONES IN THE US IS NOVEL IN EUROPE FOR ITS SIZE AND FOR THE LEGAL GROUND IT'S BREAKING IN INDUSTRY JARGON THE SERVICE IS CALLED A VIRTUAL PRIVATE NETWORK FOR A CLOSED USER GROUP THAT MEANS IT ADAPTS PUBLIC PHONECOMPANY LINES TO PROVIDE CUSTOMIZED PHONE SERVICES FOR THE MULTINATIONALS AND THEIR MAIN SUPPLIERS AND CUSTOMERS WHILE MANY SMALLER NETWORKS EXIST IN EUROPE TOUGH LOCAL PHONELICENSING RESTRICTIONS HAVE SO FAR DISCOURAGED COMPANIES FROM BANDING TOGETHER ON SUCH A LARGE SCALE THE GROUP SAYS IT HAS HAD CLEARANCE FROM THE EUROPEAN UNION COMMISSION'S COMPETITION AND TELECOMMUNICATIONS DIRECTORATES BUT ANALYSTS SAY IT MAY STILL FACE COURT CHALLENGES FROM THE STATE PHONE MONOPOLIES IN SOME COUNTRIES 9404120122 940412 SUFFOLK BANCORP COMPLETES DEAL RIVERHEAD NY SUFFOLK BANCORP SAID IT COMPLETED THE ACQUISITION OF HAMPTONS BANCSHARES INC FOR 123 MILLION IN STOCK AND CASH UNDER THE MERGER AGREEMENT 75 OF THE TOTAL CONSIDERATION WAS PAYABLE IN COMMON SHARES AND 25 OF THE PURCHASE PRICE WAS PAYABLE IN CASH AT 1450 A SHARE SUFFOLK BANCORP SAID HAMPTONS BANCSHARES' FORMER UNIT BANK OF THE HAMPTONS HAS BEEN MERGED INTO SUFFOLK BANCORP'S SUFFOLK COUNTY NATIONAL BANK OF RIVERHEAD UNIT 9404120121 940412 WHO'S NEWS RUBBERMAID INC RUBBERMAID INC WOOSTER OHIO FRED S GRUNEWALD WAS NAMED PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S HOME PRODUCTS DIVISION ITS LARGEST OPERATING COMPONENT FORMERLY VICE PRESIDENT OF MARKETING AND ENGINEERING AT BLACK & DECKER CORP'S HOUSEHOLD PRODUCT DIVISION MR GRUNEWALD 43 YEARS OLD SUCCEEDS CHARLES A CARROLL 44 AT RUBBERMAID MR CARROLL HAD CONTINUED OVERSEEING RUBBERMAID'S HOUSEHOLD PRODUCT DIVISION AFTER BEING ELECTED PRESIDENT AND CHIEF OPERATING OFFICER IN SEPTEMBER RUBBERMAID MAKES PLASTIC AND RUBBER PRODUCTS INCLUDING KITCHENWARE LAUNDRY AND BATH ACCESSORIES MICROWAVE OVENWARE OFFICE PRODUCTS AND CHILDREN'S TOYS 9404120120 940412 NOW FUND INVESTORS CAN TRADE HOLDINGS BY ROBERT MCGOUGH AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL SOON INSOMNIACS WILL BE ABLE TO TRADE MUTUAL FUNDS IN THE MIDDLE OF THE NIGHT PERHAPS AT HIGHER OR LOWER PRICES THAN THEY WOULD GET DURING THE DAY SAN DIEGO DISCOUNT BROKER JACK WHITE & CO PLANS TO INTRODUCE ON MAY 2 A 24HOUR SEVENDAYAWEEK ORDER MATCHING SERVICE FOR MUTUAL FUNDS AS WELL AS STOCKS AND COMMODITIES INCLUDING CURRENCIES THE AFTERHOURS TRADING WOULD APPLY TO MANY NOLOAD MUTUAL FUNDS AS WELL AS TO PUBLICLY TRADED CLOSEDEND FUNDS AMONG OTHER THINGS THE SERVICE MIGHT ALLOW INVESTORS TO TRADE IN REACTION TO INTERNATIONAL NEWS WHEN FUND COMPANIES OR EXCHANGES ARE CLOSED MOREOVER RATHER THAN WAITING FOR PRICES TO BE SET WHEN EXCHANGES NEXT OPEN THEIR DOORS INVESTORS COULD GET A PRICE WHENEVER THE TRADE IS MADE I BELIEVE GLOBAL INVESTING IS HERE TO STAY SAYS JACK WHITE PRESIDENT OF THE BROKERAGE FIRM IT REMAINS TO BE SEEN HOW MANY PEOPLE WILL BE USING THIS AT THE START HE CONCEDED BUT WE'RE MAKING IT EASIER FOR PEOPLE TO GET IN AND GET OUT OF FOREIGN INVESTMENTS THE FIRM SAYS ITS PLANNED 24HOUR ORDERMATCHING SERVICE CALLED GLOBAL LINK IS THE FIRST SUCH AFTERHOURS TRADING SYSTEM FOR SMALL INVESTORS FROM A DISCOUNT BROKER SOME FUND COMPANIES AND DISCOUNT BROKERS ALREADY ALLOW SMALL INVESTORS TO PLACE ORDERS AROUND THE CLOCK BUT THESE ORDERS DON'T GET PRICED UNTIL TRADING BEGINS AGAIN AND MOST EXISTING AFTERHOURS TRADING SERVICES ARE GEARED TOWARD INSTITUTIONAL INVESTORS HOW WOULD THE NEW SYSTEM WORK SUPPOSE TWO INVESTORS RISE AT 6 AM AND HEAR ON THE RADIO ABOUT AN EARTHQUAKE IN JAPAN THEY ALSO HEAR THAT JAPANESE STOCKS HAVE PLUNGED ONE INVESTOR AFRAID OF FURTHER MARKET DECLINES MIGHT BE WILLING TO SELL 1000 JAPAN FUND SHARES FOR 10 BELOW THE PRIOR DAY'S CLOSING PRICE JUST TO GET OUT OF THE FUND BEFORE THE DECLINE IN JAPANESE PRICES IS REFLECTED IN ITS PORTFOLIO VALUE ANOTHER INVESTOR SENSING OPPORTUNITY MIGHT CALL JACK WHITE AND OFFER TO BUY 1000 JAPAN FUND SHARES FOR 10 BELOW THE PRIOR CLOSE SINCE THE TWO INVESTORS ARE WILLING TO BUY AND SELL AT THE SAME PRICE THE TWO TRADES WOULD BE CROSSED BY JACK WHITE BEFORE THE START OF THE DAY'S TRADING WHILE THE ORDER WOULD BE TAKEN BY A JACK WHITE BROKER THE TRADE WOULD BE EXECUTED BY COMPUTER THE PROPOSED SYSTEM FROM JACK WHITE SHOWS HOW IMPROVEMENTS IN COMPUTERIZATION AND COMMUNICATION SERVICES HAVE GIVEN ORDINARY INVESTORS BETTER INFORMATION AND BETTER ACCESS TO THE MARKETS SAYS KURT BROUWER PRESIDENT OF BROUWER & JANACHOWSKI A SAN FRANCISCO INVESTMENT ADVISER INSTITUTIONAL TRADERS HAVE BEEN ABLE TO DO AFTERHOURS TRADING A LONG TIME I DON'T THINK THAT MANY OF US NEED TO TRADE AT MIDNIGHT ON A SUNDAY NIGHT BUT IT DOES HELP SOMEONE WHO NEEDS TO SELL AND SOMEONE WHO NEEDS TO BUY THE BIGGEST HURDLE FOR THE PLANNED ROUNDTHECLOCK TRADING SYSTEM IS WHETHER THERE WILL BE ENOUGH VOLUME TO ALLOW BUYERS AND SELLERS TO MATCH ORDERS FOR EVERY SELLER OF A FUND OR SECURITY THERE MUST ALSO BE A BUYER AT THE SAME PRICE A DAYTIME MATCHING SYSTEM OFFERED BY JACK WHITE ALLOWING INVESTORS TO BUY LOAD FUNDS WITHOUT PAYING THE NORMAL SALES COMMISSION HAS SO FAR FAILED TO TAKE OFF FOR LACK OF VOLUME JACK WHITE SAYS IT EXPECTS VOLUME TO INCREASE SOON AS IMPROVEMENTS COME TO THE PROGRAM THE REAL KEY IN MATCHING IS IF YOU CAN FIND SOMEBODY THAT WILL MATCH PARTICULARLY IF IT'S SOMETHING GOING DOWNHILL SAYS A SPOKESMAN FOR COMPETING DISCOUNT BROKER CHARLES SCHWAB & CO WHICH CURRENTLY DOESN'T OFFER A ROUNDTHECLOCK MATCHING SERVICE FIDELITY INVESTMENTS' DISCOUNT BROKERAGE ARM SAYS IT HASN'T HAD DEMAND FROM CUSTOMERS FOR AFTERHOURS MATCHING OF TRADES ONE UNUSUAL WRINKLE TO THE PLANNED MATCHING SERVICE IS THAT INVESTORS MIGHT BE ABLE TO BUY AND SELL GARDENVARIETY OPEN END MUTUAL FUNDS AT PRICES OTHER THAN THEIR NET ASSET VALUE OR NAV THE PERSHARE VALUE OF THE FUND'S PORTFOLIO NORMALLY INVESTORS BUY FUND SHARES AT NAV CALCULATED ONCE A DAY PLUS ANY COMMISSION CHARGED BY A SELLING BROKER BUT WITH THE NEW SERVICE JACK WHITE'S CUSTOMERS CAN BUY OR SELL THE FUND SHARES ABOVE OR BELOW NAV AS LONG AS THERE IS ANOTHER JACK WHITE CUSTOMER WILLING TO TAKE THE OTHER SIDE OF THE TRADE THE FUNDS TRADED WOULD HAVE TO BE AMONG THE 2400 FUNDS SOLD BY JACK WHITE JACK WHITE HAS 350 FUNDS AVAILABLE IN A NOTRANSACTIONFEE PROGRAM FOR WHICH NO COMMISSION WOULD BE CHARGED FOR FUNDS OUTSIDE THIS PROGAM THERE IS A TRANSACTION FEE AT LEAST 27 JACK WHITE SAYS IT WAS THE FIRST DISCOUNT BROKER TO ALLOW CUSTOMERS TO BUY AND SELL NOLOAD MUTUAL FUNDS FOR A TRANSACTION FEE IT BEGAN THAT SERVICE IN 1984 SINCE THEN OTHER DISCOUNT BROKERAGE FIRMS PARTICULARLY CHARLES SCHWAB AND FIDELITY HAVE GROWN FASTER IN THEIR MUTUALFUND TRADING BUSINESS SOME FUND COMPANIES ALLOW INVESTORS TO PLACE ORDERS TO BUY OR SELL FUNDS AFTER BUSINESS HOURS SOME DISCOUNT BROKERS ALSO ALLOW ROUNDTHECLOCK ORDERS BUT THOSE INVESTORS DON'T GET AN IMMEDIATE PRICE INSTEAD THEY QUEUE UP TO TAKE THE NEXT PRICE EITHER AT THE OPENING FOR A STOCK OR AT THE CLOSE OF TRADING FOR A FUND OF COURSE AMID MARKET TURMOIL THERE MAY BE MANY MORE SELL ORDERS THAN BUY ORDERS IN THAT CASE MOST OF THE FUND INVESTORS WANTING TO SELL WOULDN'T BE ABLE TO UNLOAD THEIR SHARES THROUGH GLOBAL LINK AND WOULD HAVE TO WAIT TO SELL AT THE NEXT CALCULATION OF THE FUND'S NAV THE FASTESTGROWING AFTERHOURS TRADING ARENA IS REUTERS HOLDINGS PLC'S ELECTRONIC INSTINET WHOSE SYSTEMS ARE OPEN 24 HOURS A DAY FOR TRADING STOCKS THE SMALL INVESTOR CAN ACCESS OUR SYSTEM THROUGH THE BROKER AFTER HOURS IF HE CAN FIND HIM SAYS RICHARD SCHENKMAN SENIOR VICE PRESIDENT AT INSTINET INDIVIDUALS DON'T CALL INSTINET DIRECTLY THOUGH AND BROKERAGE FIRMS GAIN ACCESS TO THE 24HOUR MARKET VIA COMPUTERS THE NEW YORK STOCK EXCHANGE HAS AN AFTERHOURS CROSSING SESSION FROM 400 PM TO 500 PM EDT WHERE INDIVIDUALS CAN BUY AND SELL STOCKS WHEN A MATCH IS FOUND AT THAT DAY'S CLOSING PRICE SELECTNET A COMPUTERIZED TRADING SYSTEM ALLOWS MEMBERS OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS TO TRADE UNTIL 515 PM WHICH THEY DO LARGELY FOR INSTITUTIONAL INVESTORS 9404120119 940412 THE ZULUS VICTORIAN WARRIORS IN THE MODERN AGE BY DAVID BROOKS IN THE 19TH CENTURY THE ZULUS WERE THE MOST ADMIRED AND ROMANTICIZED OF AFRICAN TRIBES THEY WERE CELEBRATED IN EUROPE AND THE US FOR THEIR WARRIOR SPIRIT AND THEIR FIERCE INDEPENDENCE THEIR IMPOSING REPUTATION WAS FIRST EARNED BY THE ZULU KING SHAKA WHO IN THE 1820S BUILT AN EMPIRE IN SOUTHERN AFRICA IT WAS SEALED IN 1877 WHEN ZULU SOLDIERS DECIMATED A WELLTRAINED BRITISH FORCE AT THE BATTLE OF ISANDHLWANA ONE OF THE FEW TIMES IN THE PAST 400 YEARS THAT AN ARMY WITH SPEARS HAS DEFEATED AN ARMY WITH GUNS TODAY THE ZULUS ARE THE MOST SCORNED OF AFRICAN TRIBES THEY ARE CENSURED FOR EXACTLY THE QUALITIES THAT ONCE EARNED THEM RESPECT THEIR WARRIOR SPIRIT AND FIERCE INDEPENDENCE EARLY LAST YEAR TO TAKE A TYPICAL TREATMENT THE FINANCIAL TIMES RAN AN ESSAY ON THE ZULUS UNDER THE HEADLINE THE HISTORY OF BLOODLUST THAT STAINS THE CONFERENCE TABLE THE ACCOMPANYING ARTWORK SHOWED A MUSCLEBOUND ZULU WARRIOR LOOMING OMINOUSLY OVER A MULTIRACIAL NEGOTIATION THE EDITOR'S EXPLANATORY PANEL READ THE ZULU TRADITION IS KILLING AND CONQUEST UNDER SHAKA THEIR HEROIC BUT BRUTAL WARRIOR KING THIS IS HARD TO RECONCILE WITH THE IDEAL OF A NEW SOUTH AFRICA THE ZULUS ARE VICTIMS OF A CULTURE SHIFT IN THE 19TH CENTURY THE PHENOMENALLY POPULAR NOVELIST H RIDER HAGGARD COULD CELEBRATE THEM AS THE ROMANS OF AFRICA HAGGARD'S ADVENTURE STORIES THE INSPIRATION FOR THE INDIANA JONES SERIES CELEBRATE VIRILITY HE LIVED IN ZULU TERRITORY DURING THE BATTLE OF ISANDHLWANA AND CAME TO SEE THE ZULUS' COURAGE AND DISCIPLINE AS THE EMBODIMENT OF HIS OWN RUGGED IDEALS THE ZULUS WERE PERHAPS THE ONLY SOLDIERS EVER ACCORDING TO MILITARY HISTORIAN JOHN KEEGAN SO DISCIPLINED THAT THEY COULD FACE NAKED BLADES WITHOUT FLINCHING AND IT WASN'T ONLY MACHO NOVELISTS WHO ADMIRED THEM QUEEN VICTORIA PRAISED ZULU FEROCITY AND COURAGE THE VICTORIANS SAW IN THE ZULUS THE MILITARY VIRTUES HONOR GLORY CONTEMPT FOR SOFTNESS THAT WERE CENTRAL TO THEIR OWN IMAGINATIONS MILITARY VIRTUES WERE SO PROMINENT THEN THAT WHEN THE SALVATIONISTS IN LONDON FORMED A CHARITABLE GROUP IN THE 1870S THEY CALLED IT AN ARMY EVEN INTELLECTUALS BELIEVED THAT CHARACTER WAS BUILT THROUGH COMBAT AND ORDEAL THE GREAT HISTORIAN MACAULAY CELEBRATED A FEW OF HIS HEROES WITH A CHARACTERISTIC LINE MEN VERY PEACEABLE BUT WHO COULD BE MADE VERY TERRIBLE THAT'S ALL MARGINALIZED NOW VIRILITY IS NO MORE IMPORTANT TO THE CONTEMPORARY VIRTUES THAN ITS CHIEF EXPONENT RUDYARD KIPLING IS TO CONTEMPORARY CULTURE FREUD THE HORRORS OF THE WORLD WARS ALAN ALDA AND A THOUSAND OTHER 20TH CENTURY INFLUENCES TOOK THE STEAM OUT OF THAT VERSION OF MANLINESS NOW THE MARTIAL VIRTUES ARE RESTRICTED TO SUBCULTURES AND CHURCH GROUPS THINK ABOUT REWRITING THE LYRICS TO ONWARD CHRISTIAN SOLDIERS THE GENTLER IDEALS OF SENSITIVITY COMPASSION INTROSPECTION AND TOLERANCE HOLD SWAY THE ZULUS THUS FIND THEMSELVES OUT OF FAVOR LOSING THEIR CURRENT PROPAGANDA WAR TO THE AFRICAN NATIONAL CONGRESS IN MEDIA AGE POLITICS THE POSITIONS A GROUP TAKES ARE OFTEN LESS IMPORTANT THAN THE ATTITUDES IT STRIKES THE ZULUBASED INKATHA FREEDOM PARTY TAKES MODERATE POSITIONS BUT STRIKES VIRILE BELLIGERENT POSES THE MORE SUCCESSFUL ANC STRATEGY HAS COMBINED RADICAL POLICIES WITH GENTLE PROGRESSIVE ATTITUDES THAT ACCORD WELL WITH TODAY'S ETIQUETTE INKATHA HAS ESPOUSED WESTERNSTYLE MARKET DEMOCRACY WHILE THE ANC HAS ALWAYS HAD A LARGE COMMUNIST ELEMENT EVEN TODAY 26 OF ITS LEADING PARLIAMENTARY CANDIDATES ARE COMMUNISTS INKATHA ORIGINALLY BROKE WITH THE ANC BECAUSE INKATHA OPPOSED VIOLENCE AS THE WAY TO OVERTHROW APARTHEID THE ANC WENT OFF TO FORM A GUERRILLA ARMY INKATHA SUPPORTS SWISS OR AMERICANSTYLE FEDERALISM WHILE THE ANC HAS PUSHED THROUGH A HIGHLY CENTRALIZED CONSTITUTION YET THE POLITICS OF REPUTATION ARE SUCH THAT IT IS THE INKATHA LEADERS WHO ARE KNOWN AS BRISTLING UNRELIABLES WHETHER THE ZULUS REALLY ARE THAT TOUGH IS AN OPEN QUESTION IN HIS 1976 BOOK ZULU THOUGHTPATTERNS AND SYMBOLISM ANTHROPOLOGIST AXELIVAR BERGLUND DESCRIBES A CULTURE THAT IS QUITE PEACEABLE BUT ZULU LEADERS HAVE PLAYED HEAVILY ON THE IMAGE OF THEMSELVES AS FIERCE WARRIORS ESPECIALLY IN RECENT MONTHS AS THEY HAVE FELT THEMSELVES BACKED INTO A CORNER BY THE ANC INKATHA SPEAKERS ARE QUICK TO MAKE PASSIONATE BOASTS AND TO ISSUE DARES LEADER MANGOSUTHU BUTHELEZI IS A SUBTLE POLITICIAN BUT HE HAS EARNED THE NICKNAME BABEZANE AFTER THE THORNY CACTUS PLANT HE IS PROUD AND PRONE TO LASHING OUT WHEN HE FEELS SLIGHTED HIS COMBATIVE STYLE HAS WON LOYALTY AMONG TRADITIONAL ZULUS WHILE ALIENATING MANY URBANITES THE ZULUS' QUANDARY IS THIS THE TWO MOST IMPORTANT GROUPS IN THE COUNTRY THE ANC AND THE WHITE NATIONAL PARTY HAVE ALLIED TO CONSTRUCT A NEW SOUTH AFRICAN ORDER THAT IS GOOD FOR THEM BUT WHICH CEDES LITTLE OR NO POWER TO THE DOZENS OF OTHER GROUPS AND PARTIES OF THESE MINORITY GROUPS RANGING FROM THE BLOWHARDS ON THE WHITE RIGHT TO THE WHITE LIBERALS ON THE DEMOCRATIC LEFT TO THE NIHILISTS ON THE PANAFRICAN LEFT ONLY INKATHA HAS BEEN PROUD OR FIERCE OR STUPID ENOUGH TAKE YOUR PICK TO STAND UP TO THE ANC/NATIONAL PARTY STEAMROLLER IN THE 19TH CENTURY PERHAPS INKATHA'S RESISTANCE TO THE ANCDOMINATED POLITICAL PROCESS WOULD HAVE BEEN SEEN AS A COURAGEOUS STAND FOR DIGNITY EVERY VICTORIANERA AMERICAN AND BRITISH SCHOOLCHILD WOULD HAVE BEEN FAMILIAR WITH THE CLASSIC STATEMENT ABOUT WHEN TO FIGHT THAT IS FOUND IN TOM BROWN'S SCHOOL DAYS THE WORLD MIGHT BE A BETTER WORLD WITHOUT FIGHTING FOR ANYTHING I KNOW BUT IT WOULDN'T BE OUR WORLD AND THEREFORE I AM DEAD AGAINST CRYING PEACE WHEN THERE IS NO PEACE AND ISN'T MEANT TO BE I AM AS SORRY AS ANY MAN TO SEE FOLK FIGHTING THE WRONG PEOPLE AND THE WRONG THINGS BUT I'D A DEAL SOONER SEE THEM DOING THAT THAN THAT THEY SHOULD HAVE NO FIGHT IN THEM COMPARE THE LANGUAGE FOUND IN THIS PASSAGE TO THE SORT OF RHETORIC THAT SURROUNDS THE UNITED NATIONS TODAY WE PLACE A HIGHER EMPHASIS ON COMPROMISE AND RECONCILIATION AND ARE NOT SO CONCERNED THAT PEOPLE SHOULD HAVE FIGHT IN THEM WE ARE LESS WILLING TO SACRIFICE LIVES FOR ETHEREAL AND SOMETIMES BOGUS NOTIONS SUCH AS NATIONAL PRESTIGE VIEWING PEACE AS A GOOD IN ITSELF WESTERN OPINION CAN BE ROUGH ON PEOPLE WHO BECOME DEFINED AS OBSTACLES TO PEACE INKATHA IS NOW RESENTED FOR STANDING IN THE WAY OF WHAT IS VAGUELY KNOWN AS MULTIRACIAL DEMOCRACY THERE ARE SOME ZULUPHILES TODAY SHAKA ZULU PLAYS A LARGE ROLE IN SOME AFROCENTRIC SCHOOL CURRICULUMS BUT IN THE MAINSTREAM THERE IS LITTLE SYMPATHY FOR THE ZULUS AND THEIR CULTURE THAT SHOULD REMIND US THAT PUBLIC DEBATES ABOUT PLACES LIKE SOUTH AFRICA ARE OFTEN SHADOW PLAYS FOR UNSPOKEN DISCUSSIONS OF OUR OWN CULTURAL SHIFTS AND DISPUTES MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE 9404120118 940412 MARKETING & MEDIA ADVERTISING DON'T DARE KNOCK ON MY NETWORK IRATE ONLINE USERS TELL ADVERTISERS BY KEVIN GOLDMAN GEOFF CRENSHAW CONGRATULATED HIMSELF ON HIS CLEVERNESS AS MANAGING PARTNER OF CAPTAIN COOK'S CRUISE CENTER THE 40YEAROLD ENTREPRENEUR WANTED AN INEXPENSIVE WAY TO ADVERTISE A CRUISE TO THE SOUTHERN CARIBBEAN FEATURING CALIFORNIA WINEMAKERS SO MR CRENSHAW POSTED HIS AD ON THE 47 ELECTRONIC BULLETIN BOARDS OF WINE AND DINE ONLINE A SERVICE INCLUDED ON AMERICA ONLINE ONE OF THE COMPUTER INDUSTRY'S ONLINE COMPANIES MR CRENSHAW WHOSE SIGNON IS CAPT COOK THEN SAT BACK IN HIS OFFICE IN VISALIA CALIF WAITING FOR RESPONSES TO ROLL IN A TYPICAL REPLY WHY IS THIS ABUSE ALLOWED I WHOLE HEARTEDLY SIC AGREE THAT CAPT COOKE SIC SHOULD DIE A HORRIBLE SCREAMING DEATH WHO IS THE CREEP GOING TO CURACAO HE SHOULD GO THERE STAY THERE LEAVE US ALONE READ ANOTHER IN THE VERNACULAR OF ONLINE USERS MR CRENSHAW GOT FLAMED MR CRENSHAW'S SIN ACCORDING TO CRAIG GOLDWYN PUBLISHER OF WINE AND DINE ONLINE WASN'T UNDERSTANDING NETIQUETTE THE ACCEPTABLE BEHAVIOR FOR THOSE COMMUNICATING ONLINE AND ACCORDING TO ONLINE EXPERTS IT APPEARS THAT MORE COMPANIES NEED A COURSE FROM A COMPUTERFRIENDLY MISS MANNERS INCREASINGLY SMALL COMPANIES ARE STUMBLING ONTO COMPUTER NETWORKS ANGERING USERS IF PEOPLE WANTED TO BE BOMBARDED WITH COMMERCIALS THEY WOULD GO ELSEWHERE SAYS A SPOKESMAN FOR COMPUSERVE A UNIT OF H&R BLOCK THE RULES ARE JUST BEGINNING TO BE UNDERSTOOD BY THOSE INTERESTED IN ADVERTISING ON THE INTERNET EVEN MR GOLDWYN ONLY GENTLY CHASTISED MR CRENSHAW NO HARD FEELINGS FROM ME MR GOLDWYN WROTE THOUGH I'VE OFTEN WONDERED WHAT THE RESPONSE WOULD BE IF SOMEBODY SHOULD TRY TO DO WHAT YOU DID WE ARE INVENTING AS WE GO THE MILLIONS OF ONLINE USERS ARE UNDERSTANDABLY HARD TO RESIST WHEN COMPANIES WANT TO SPREAD THE WORD ABOUT THEIR PRODUCTS AND SERVICES AND EXECUTIVES WITH MAJOR ONLINE COMPANIES INCLUDING AMERICA ONLINE PRODIGY COMPUSERVE AND GENIE CONCEDE THERE IS LITTLE THAT CAN BE DONE TO PREVENT ADVERTISING FROM CREEPING INTO THE SYSTEM FOR EXAMPLE SOME ONLINE BULLETIN BOARDS ARE FOR THOSE INTERESTED IN SCUBA DIVING AND THERE IS LITTLE TO PREVENT THE APPEARANCE OF RECOMMENDATIONS FOR A SCUBA EQUIPMENT SHOP WE HAVE NO SOLICITATIONS TO OUR MEMBERS AT ALL SAYS A SPOKESWOMAN FOR COMPUSERVE OUR BULLETIN BOARDS ARE SELFPOLICING BY USERS IF AN ADVERTISER IS DISCOVERED THEY ARE YANKED OFF WHILE THE SPOKESWOMAN DECLINES TO BE SPECIFIC SHE ADMITS SOME COMPANIES AND STORES HAVE INDEED BEEN SIGNED OFF IF PEOPLE WANT TO FLOG PRODUCTS WE DISCOURAGE THAT SAYS JENNY AMBROZEK MANAGER OF BULLETIN BOARD COMMUNICATIONS AT PRODIGY SERVICES OUR MEMBERS DON'T WANT THE BULLETIN BOARDS TO HAVE SALESMEN KNOCKING AT THEIR DOOR SOME PEOPLE ARE MORE SUBTLE DISPATCHING ADVERTISING DISGUISED AS INFORMATION WHEN WILLIAM TALBERT CHIEF OPERATING OFFICER OF THE GREATER MIAMI CONVENTION AND VISITORS BUREAU AND HIS FRIEND PATTI HELMS PERUSED THE WINE AND DINE BULLETIN BOARDS ON AMERICA ONLINE RECENTLY THEY WERE PLEASED TO DISCOVER THAT SOMEONE SIGNING ON AS JERRYCT INQUIRED ABOUT NEW HOT SPOTS ON MR TALBERT'S TURF MY FAVORITE RESTAURANT ON SOUTH BEACH IS THE STRAND ON WASHINGTON AVE THE REPLY BEGAN AFTER LISTING A FEW EATERIES MS HELMS ASKED ARE YOU INTERESTED IN RECEIVING A COMPREHENSIVE VISITORS' GUIDE TO MIAMI I USED TO WORK FOR THE LOCAL VISITORS' BUREAU AND WOULD BE HAPPY TO SEND YOU A COPY NO CHARGE IT WOULD BE MY PLEASURE MS HELMS DIDN'T MENTION HER CONNECTION TO MR TALBERT IN A TELEPHONE INTERVIEW YESTERDAY SHE SAID THEY SHARE THE SAME ADDRESS MR TALBERT MAKES NO APOLOGIES FOR SENDING A CHIRPY MESSAGE BACK ABOUT MIAMI AND NOT DISCLOSING THAT THE CONVENTION AND VISITORS BUREAU WAS BEHIND IT WE RECEIVED THE INQUIRY WE GOT SOME INFORMATION FROM OUR MEMBERSHIP WE DEVELOPED SOME NICE MATERIAL AND SENT IT BACK ON THE INTERNET HE SAYS WE ARE ON THE CUTTING EDGE OF A 1990S MARKETING APPROACH HE ADDS THIS IS A FREEBIE AD WHAT GALLS ONLINE COMPANIES IS THAT THERE ARE ELECTRONIC FOLDERS SOLELY FOR ADVERTISERS WHO AREN'T EVEN CHARGED FOR THE SERVICE THE USER WHO PAYS A FEE FOR THE TIME HE OR SHE IS ONLINE HAS THE OPTION OF BROWSING THAT'S WHY ADVERTISING IS SO FROWNED UPON ON NONADVERTISING FOLDERS SAYS JOHN BARBER GENERAL MANAGER OF GENERAL ELECTRIC'S GENIE PEOPLE ARE UNHAPPY WHEN THEY'RE PAYING TO READ ADVERTISING WE HAVE RULES OF THE ROAD ON THE SUPERINFORMATION HIGHWAY COMPANIES THAT WANT TO ADVERTISE SHOULD ABIDE BY THEM MAJOR ADVERTISERS NOW EYE THE TECHNOLOGY THE DEMOGRAPHICS ARE IRRESISTIBLE SAYS BETSY FRANK SENIOR VICE PRESIDENT AND DIRECTOR OF TV INFORMATION AND NEW MEDIA AT SAATCHI & SAATCHI ADVERTISING THE DOMINANT ONLINE USER IS MALE 25 TO 54 YEARS OLD MS FRANK SAYS CLIENTS WOULDN'T BUY BLATANT ADVERTISING INSTEAD IT WOULD HAVE TO BE SOME SORT OF SERVICE OR ENTERTAINMENT THAT IS BEING BROUGHT TO YOU BY THE ADVERTISER IT WOULD HAVE TO TAKE A LOT OF CARE BUT MR CRENSHAW WASN'T CAREFUL ENOUGH AND THUS VIOLATED NETIQUETTE I DIDN'T REALIZE IT WOULD BE VIEWED AS INAPPROPRIATE BEHAVIOR HE SAYS AFTER BEING CALLED NAMES THAT CAN'T BE REPRINTED HERE AND BEING LABELED AS CAP CROOK BY ONE RESPONDENT MR CRENSHAW VOWS THIS IS SOMETHING I WON'T BE DOING AGAIN SHOE ACCOUNT AVIA GROUP INTERNATIONAL A REEBOK SUBSIDIARY STARTED A NATIONAL SEARCH TO REPLACE ITS AGENCY CITRON HALIGMAN BEDECARRE OF SAN FRANCISCO THE AGENCY WHICH SAID IT WILL KEEP THE ESTIMATED 5 MILLION US ACCOUNT FOR 1994 NOTED THAT AVIA IS TRYING TO CENTRALIZE ITS GROWING GLOBAL BUSINESS WHO'S NEWS STEVEN J HEYER WAS NAMED PRESIDENT OF TURNER BROADCASTING SYSTEM'S NEW YORKBASED SALES SUBSIDIARY TO OVERSEE US AND INTERNATIONAL AD SALES MR HEYER 41 YEARS OLD WAS FORMERLY PRESIDENT AND CHIEF OPERATING OFFICER OF YOUNG & RUBICAM'S YOUNG & RUBICAM ADVERTISING WORLDWIDE AS WELL AS Y&R'S EXECUTIVE VICE PRESIDENT PLAY BALL BURKHARDT & CHRISTY ADVERTISING WHICH HANDLES ADS FOR THE NEW YORK KNICKS AND NEW YORK RANGERS WAS AWARDED THE AD ACCOUNT FOR THE NEW YORK YANKEES BASEBALL TEAM 9404120117 940412 FTC SAYS NATIONAL ART RAN SCHEME' TO SELL POSTERS VIA TELEPHONE NEW YORK THE FEDERAL TRADE COMMISSION HAS FILED CHARGES AGAINST A LA JOLLA CALIF COMPANY ALLEGING THAT IT RAN A DECEPTIVE TELEMARKETING SCHEME TO SELL MOVIE POSTERS AT INFLATED PRICES NATIONAL ART PUBLISHERS & DISTRIBUTORS INC ENGAGED IN DECEPTIVE PRACTICES THE FTC ALLEGES WHEN IT SOLD POSTERS FROM SUCH MOVIES AS WHITE HEAT AND PSYCHO FOR 10 TO 60 TIMES THEIR MARKET VALUE OFTEN WITH THE PROMISE THAT THE POSTERS WOULD INCREASE IN VALUE IN FOUR TO SIX MONTHS THE FTC FILED ITS LAWSUIT AGAINST NATIONAL ART LATE LAST WEEK IN US DISTRICT COURT IN CALIFORNIA HUNDREDS OF PEOPLE HAVE PURCHASED THE POSTERS SINCE NATIONAL ART BEGAN TELEPHONE SALES IN APRIL 1993 ACCORDING TO THE FTC NATIONAL ART'S PRINCIPALS BENJAMIN VALENTY AND CHARLES MCLAUGHLIN COULD NOT BE REACHED FOR COMMENT THE COURT HAS CLOSED THE OFFICES OF NATIONAL ART PLACING THE COMPANY IN RECEIVERSHIP MOVIE POSTERS WHICH HAVE SHOWN MARKED APPRECIATION ARE THE LATEST COLLECTIBLES TO BE ADOPTED BY TELEMARKETERS SOCALLED BOILER ROOM OPERATIONS TRY TO CAPITALIZE ON ARTMARKET FADS AND THE PUBLICITY THAT RECORD PRICES GENERATE THE AUCTION RECORD FOR A MOVIE POSTER WAS SET LAST YEAR 198000 FOR AN ORIGINAL POSTER FROM THE CLASSIC FRANKENSTEIN NATIONAL ART'S CLAIMS WERE RIDICULOUS SAID BRUCE HERSCHENSON CONSULTANT ON THE MOVIEPOSTER MARKET TO CHRISTIE'S INTERNATIONAL PLC AUCTION HOUSE MOST CUSTOMERS OF NATIONAL ART BOUGHT SHARES IN SYNDICATIONS OF MOVIE POSTERS USUALLY GROUPS OF 25 ACCORDING TO THE FTC ONE SHARE COST 4000 TO 12500 9404120116 940412 BUSINESS BRIEFS INTERSTATE PARTNERS LP A JOINT VENTURE OF BLACKSTONE GROUP AND INTERSTATE HOTELS CORP ACQUIRED THE COLORADO SPRINGS MARRIOTT IN COLORADO SPRINGS COLO TERMS WEREN'T DISCLOSED REGAL CINEMAS INC ACQUIRED THE BULK OF THE ASSETS OF PRIVATELY HELD NATIONAL THEATRE HOLDINGS INC FOR 245 MILLION A SUBSIDIARY OF RYDER SYSTEM INC PURCHASED LOGICORP INC A PRIVATELY HELD LOGISTICS COMPANY IN WEST BLOOMFIELD MICH TERMS WEREN'T DISCLOSED GUY F ATKINSON CO OF CALIFORNIA'S WALSH CONSTRUCTION CO UNIT WAS AWARDED A 40 MILLION CONTRACT TO DESIGN AND BUILD A COGENERATION PLANT FOR THE UNIVERSITY OF CALIFORNIA'S SAN FRANCISCO MEDICAL FACILITY 9404120115 940412 TOSHIBA 3DO SET VENTURE REDWOOD CITY CALIF 3DO CO SAID TOSHIBA CORP SIGNED AN AGREEMENT TO MAKE MARKET AND DISTRIBUTE 3DO PRODUCTS A SPOKESWOMAN SAID TOSHIBA A JAPANESE ELECTRONICS CONCERN PLANS TO DEVELOP A PORTABLE UNIT THAT COULD BE INSTALLED IN AUTOMOBILES AS A NAVIGATION SYSTEM USING 3DO TECHNOLOGY THE MULTIMEDIA GAME MAKER IS BACKED BY MATSUSHITA ELECTRIC INDUSTRIAL CO OF JAPAN AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK AND TIME WARNER INC NEW YORK 9404120114 940412 WHO'S NEWS TENNECO INC TENNECO INC HOUSTON ILENE S GORDON 40 YEARS OLD WAS NAMED VICE PRESIDENT OPERATIONS SUCCEEDING RICHARD L WAMBOLD 42 WHO WAS NAMED SENIOR VICE PRESIDENT AND GENERAL MANAGER SPECIALTY PACKAGING GROUP OF THIS DIVERSIFIED MANUFACTURING AND NATURAL GAS CONCERN'S PACKAGING CORP OF AMERICA UNIT BASED IN EVANSTON ILL MS GORDON HAS BEEN A SENIOR VICE PRESIDENT OF THE UNIT MR WAMBOLD SUCCEEDS ANTHONY F BOVA 48 WHO RESIGNED TO PURSUE OTHER INTERESTS 9404120113 940412 INTERNATIONAL AIR FRANCE WORKERS BACK MANAGEMENT RESTRUCTURING PLAN BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL AIR FRANCE'S FUTURE GREW BRIGHTER YESTERDAY AFTER THE AIRLINE'S WORKERS VOTED OVERWHELMINGLY IN FAVOR OF A MANAGEMENT RESTRUCTURING PLAN THE STATEOWNED AIRLINE ANNOUNCED THAT 835 OF THE 40000MEMBER STAFF TOOK PART IN THE REFERENDUM ON THE PLAN WITH 813 OF THE VOTES IN SUPPORT OF THE SCHEME THE CARRIER SAID THAT 165 OF THOSE VOTING OPPOSED THE PLAN WHILE 22 OF THE BALLOTS WERE INVALID THE RESULT MARKS A MAJOR VICTORY FOR AIR FRANCE CHAIRMAN CHRISTIAN BLANC WHO SINCE JOINING THE TROUBLED AIRLINE FIVE MONTHS AGO HAS LABORED TO CONVINCE UNIONS AND WORKERS OF THE NEED FOR CHANGE MR BLANC HAD THREATENED TO QUIT IF THE VOTE WAS ANYTHING LESS THAN A CLEAR MAJORITY THE EMPLOYEES HAVE MASSIVELY DEMONSTRATED THEIR DETERMINATION TO GIVE ONCE AGAIN A FUTURE TO AIR FRANCE MR BLANC WAS QUOTED AS SAYING NOW ALL OF US THOSE WHO VOTED YES' AND THOSE WHO VOTED NO' ARE GOING TO WORK TOGETHER AND REBUILD THE COMPANY ALSO LIKELY TO BE CELEBRATING THE RESULT IS FRENCH PRIME MINISTER EDOUARD BALLADUR MR BALLADUR CAME TO OFFICE PROMISING TO PRIVATIZE MUCH OF THE STATEOWNED SECTOR AND PROMOTE BUSINESS BUT HAS BEEN REPEATEDLY HUMILIATED BY SOCIAL UNREST AND MOUNTING LOSSES AT STATE COMPANIES AMONG SUCH INCIDENTS WAS A STRIKE BY AIR FRANCE WORKERS LAST OCTOBER THAT LED MR BALLADUR TO WITHDRAW HIS SUPPORT FOR A RESTRUCTURING PLAN DRAFTED BY FORMER AIRLINE CHAIRMAN BERNARD ATTALI WHO PROMPTLY QUIT CELEBRATION AND RELIEF ARE LIKELY TO BE BRIEF HOWEVER AS THE HARD TASK OF TURNING AROUND THE COMPANY BEGINS AIR FRANCE EXPECTS TO REPORT A 1993 LOSS OF MORE THAN 75 BILLION FRANCS 128 BILLION OR ABOUT HALF THE TOTAL LOSSES OF ALL THE WORLD'S MAJOR AIRLINES COMBINED AND MUCH OF THE AIRLINE'S WORK FORCE APPEARS RELUCTANT TO CHANGE MR BLANC SAYS A CULTURAL REVOLUTION WILL BE REQUIRED AT AIR FRANCE IN THE EYES OF SOME ANALYSTS THE RESTRUCTURING PLAN MAY NOT BE ENOUGH SINCE SOME OF ITS KEY COSTCUTTING MEASURES RELY ON VOLUNTARY ACTIONS BY THE STAFF THE PLAN WILL CUT EMPLOYMENT 12 THROUGH NATURAL DEPARTURES FREEZE SALARIES UNTIL 1996 AND CALL ON MANAGERS TO TAKE PAY CUTS IN EXCHANGE FOR SHARES IN THE COMPANY PROMOTIONS WILL ALSO BE TEMPORARILY SUSPENDED THE FLEET SIZE REDUCED AND WORK HOURS MADE MORE FLEXIBLE THE MOST CONTROVERSIAL PART OF THE PLAN IS A PLANNED 20 BILLIONFRANC CAPITAL INJECTION FROM THE FRENCH GOVERNMENT WITH THE FIRST 10 BILLION FRANCS EXPECTED TO GO INTO THE AIRLINE'S BANK ACCOUNT SOON BUT A HOST OF OTHER EUROPEAN AIRLINES STAND OPPOSED TO THE INFUSION AND ARE EXPECTED TO LOBBY HARD FOR THE EUROPEAN UNION COMMISSION TO BLOCK THE AID 9404120112 940412 WHO'S NEWS FIRST USA INC FIRST USA INC DALLAS PETER B BARTHOLOW WAS NAMED CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT OF THIS CREDITCARD PROVIDER MR BARTHOLOW 45 YEARS OLD RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MCORP DALLAS TO JOIN FIRST USA PAMELA H PATSLEY 37 WHO WAS CHIEF FINANCIAL OFFICER OF FIRST USA AND PRESIDENT OF THE COMPANY'S MERCHANT SERVICES UNIT WILL RELINQUISH THE CFO TITLE TO CONCENTRATE ON MERCHANT SERVICES CHAIRMAN AND CHIEF EXECUTIVE JOHN TOLLESON SAID CONTINUED GROWTH PROMPTED THE COMPANY TO EXPAND ITS MANAGEMENT TEAM IN A RELATED ANNOUNCEMENT MCORP SAID IT WILL NOT REPLACE MR BARTHOLOW TO CUT EXPENSES THE BANKING CONCERN SAID IT EXPECTS IMPLEMENTATION OF ITS CHAPTER 11 BANKRUPTCYLAW PLAN WITHIN A FEW MONTHS 9404120111 940412 FIRST UNION UNIT'S ACQUISITION THE PURCHASE INCLUDES 74 MILLION OF INSURED DEPOSITS AND 30 MILLION OF CASH ASSETS FIRST UNION SAID FIRST UNION NATIONAL BANK IS A UNIT OF FIRST UNION CORP FIRST UNION NATIONAL BANK SAID JACKSONVILLE FEDERAL SAVINGS WILL CEASE OPERATIONS WITHIN A FEW MONTHS AFTER ITS SEVEN BRANCHES ARE CONVERTED TO FIRST UNION NATIONAL BANK BRANCHES 9404120110 940412 MARKETS ABROAD MAY NOW BE DANCING TO OWN BEAT BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WHIPSAWED BY VOLATILE US STOCK AND BOND MARKETS OVERSEAS SECURITIES PARTICULARLY EUROPEAN ARE BEGINNING TO SHOW SIGNS OF BREAKING AWAY FROM BIG BROTHER MONEY MANAGERS AND ANALYSTS ARE TRYING TO FIGURE OUT WHETHER THE RECENT DECLINE IN OVERSEAS BOND YIELDS AND RALLY IN FOREIGN STOCK MARKETS REPRESENT A LASTING ESCAPE FROM THE INFLUENCE OF US FINANCIAL MARKETS OR MERELY A TEMPORARY PAROLE MICHAEL H HYMAN MANAGING DIRECTOR OF GH ASSET MANAGEMENT LTD IN LONDON SUGGESTS THAT THE DECOUPLING OF EUROPE'S MARKETS FROM THE US IS ALREADY HAPPENING HE SAYS KEY EVIDENCE EMERGED DURING THE EASTER HOLIDAY WHEN FUTURES CONTRACTS ON US TREASURY BONDS PLUNGED ABOUT 3 1/2 POINTS OR 35 FOR EACH 1000 FACE AMOUNT FROM LATE THURSDAY MARCH 31 TO EARLY LAST TUESDAY YET AFTER NOT TRADING ON FRIDAY AND MONDAY THE GERMAN GOVERNMENT BOND CONTRACT OPENED TUESDAY ONLY SLIGHTLY BELOW WHERE IT SETTLED THE PREVIOUS THURSDAY AND CLOSED HIGHER THREE WEEKS AGO IF US TREASURYS FELL THREE POINTS EUROPEAN BONDS WOULD HAVE FALLEN THREE POINTS SAYS MR HYMAN BUT WHEN THE US TREASURY MARKET SOLD OFF MY ATTITUDE WAS THAT'S AMERICA'S PROBLEM' I CAME IN TUESDAY MORNING AND DECIDED TO BUY EUROPEAN BONDS UNTIL RECENTLY GLOBAL INVESTORS PLACED THE ECONOMIC FUNDAMENTALS FAVORING EUROPEAN BOND MARKETS LOW INFLATION HIGH UNEMPLOYMENT AND SLOW GROWTH ON THE BACK BURNER NOTING THE WAY EUROPE'S STOCK AND BOND MARKETS TUMBLED ALONGSIDE THOSE IN THE US GEORGE MAGNUS CHIEF INTERNATIONAL FIXEDINCOME ECONOMIST AT SG WARBURG & CO IN LONDON SAYS SOME OF IT HAS TO DO WITH FUNDAMENTALS SOME HAS NOTHING TO DO WITH FUNDAMENTALS IT'S ABOUT INVESTMENT AND TRADING POSITIONS AND IT'S ABOUT FEAR EARLY THIS YEAR MANY LARGE INSTITUTIONAL INVESTORS ESPECIALLY HEDGE FUNDS BORROWED HUGE SUMS TO PLACE BIG BETS ON JAPANESE AND EUROPEAN BOND MARKETS BUT THEY BEGAN DUMPING THEIR BOND HOLDINGS AFTER THE FEDERAL RESERVE RAISED INTEREST RATES ON FEB 4 WE ALL APPRECIATE THAT THERE IS A STRONG INFLUENCE OF AMERICAN CAPITAL MARKETS ON GLOBAL MARKETS BUT SO MUCH OF WHAT WE HAVE SEEN THIS YEAR HAS TO DO WITH BAD POSITIONS THAT WERE OWNED BY THE HEDGE FUNDS BANKS' PROPRIETARY TRADING DESKS AND FINALLY TRUEBLUE INVESTORS SAYS MR MAGNUS THERE HAS BEEN A TREMENDOUS LIQUIDATION OF INVESTMENT POSITIONS TO FINANCE THE LOSSES THAT HAVE BEEN EXPERIENCED AROUND THE GLOBE BUT DURING THE PAST FEW DAYS HE AND OTHERS NOTE SIGNS OF A WELCOME CHANGE THAT COULD HELP BOTH EUROPEAN BOND AND STOCK MARKETS DECOUPLE WE'VE SEEN SHORTTERM EUROPEAN RATES FALL IN THE FACE OF RISING US RATES AND THAT'S A TREND THAT WILL CONTINUE SAYS STEVEN BATES A DIRECTOR IN CHARGE OF CONTINENTAL EUROPEAN EQUITIES AT FLEMING INVESTMENT MANAGEMENT LTD IN LONDON AND THAT'S SUPPORTED BY A FAVORABLE UNITCOST OUTLOOK IN EUROPE EVEN IN GERMANY THINGS ARE LOOKING A LITTLE BETTER WAGE SETTLEMENTS ARE THE LOWEST SINCE THE END OF THE SECOND WORLD WAR MONEY MANGERS MOSTLY AGREE THAT THE JAPANESE STOCK MARKET IS THE LEAST INFLUENCED BY THE US AND THAT AMONG THE WORLD'S OTHER MAJOR FOREIGN EQUITY MARKETS BRITAIN'S IS LINKED CLOSEST TO THE US THE BIG ISSUE THEY SAY IS WHETHER CONTINENTAL EUROPEAN MARKETS CAN BREAK FREE THE CASE FOR DECOUPLING RESTS IN BASIC ECONOMICS MOST ECONOMISTS CONTEND THAT THE WORLD'S MAJOR ECONOMIES ARE OUT OF SYNCH AND THAT RECESSIONRIDDEN CONTINENTAL EUROPE IS TWO TO FOUR YEARS BEHIND THE HIGHGROWTH US ECONOMY AND BRITAIN ABOUT A YEAR BEHIND JAPAN IS CONSIDERED TO BE IN A SIMILAR POSITION TO THAT OF CONTINENTAL EUROPE WE HAVE DIVERGENT CYCLES WITH THE US HEATING UP AND EUROPE AND JAPAN STILL MIRED IN RECESSION SAYS IAN AMSTAD A SENIOR ECONOMIST AT BANKERS TRUST CO IN LONDON EUROPEAN ECONOMIES HE SAYS SUFFER FROM LOW INDUSTRIAL CAPACITYUTILIZATION AND HIGH UNEMPLOYMENT WHAT'S MORE INFLATION IN EUROPE IS DEAD AND BURIED HE SAYS BY CONTRAST MR AMSTAD SAYS THE US HAS INCREASING CAPACITY UTILIZATION ACCELERATING EMPLOYMENT GROWTH A ROBUST RECOVERY AND RISING INTEREST RATES THUS HE AND OTHERS ARGUE THAT EUROPEAN INTEREST RATES WILL CONTINUE TO DECLINE WHILE US RATES RISE THE FUNDAMENTALS ALWAYS WIN IN THE END THE QUESTION IS HOW LONG IT WILL TAKE THEM TO REASSERT THEMSELVES SAYS MR AMSTAD FEW ANALYSTS PREDICT A SMOOTH RIDE NOTING THE CURRENT FRAGILE STATE OF AFFAIRS IN WORLD SECURITIES MARKETS MR MAGNUS OF SG WARBURG WARNS IF WE GET ANOTHER DOWNDRAFT IN THE TREASURY MARKET THE ACID TEST WILL BE WHETHER WE SEE THE LONGEND OF EUROPEAN BONDS DECOUPLING PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES CORP IN NEW YORK SAYS HE THINKS THE DECOUPLING THESIS IS BUNK PARTICULARLY WHEN APPLIED TO EUROPEAN STOCK MARKETS HE CONCEDES THAT INTEREST RATES HAVE TO FALL IN EUROPE AND RISE IN THE US THAT'S AN APPEALING ARGUMENT BUT THAT HASN'T HELPED VERY MUCH HE SAYS HE POINTS OUT THAT IN THE MOST RECENT STOCKMARKET CORRECTION FRENCH AND BRITISH SHARES TUMBLED MORE THAN US STOCKS AND THAT THE GERMAN STOCK MARKET PERFORMED ABOUT THE SAME AS ITS AMERICAN COUNTERPART AND WAS ACTUALLY WORSE OFF IN MARCH MR CANELO POINTS OUT THAT RELATIVE TO THE STANDARD & POOR'S 500STOCK INDEX EUROPEAN EQUITY MARKETS HISTORICALLY HAVE HAD A BETA OF GREATER THAN ONE THAT MEANS IF THE S&P GOES UP EUROPE GOES UP MORE BUT IF THE US MARKET GOES DOWN EUROPEAN MARKETS GO DOWN MORE HE SAYS TO BACK UP HIS ARGUMENT HE POINTS OUT THAT EUROPEAN STOCKS FELL MORE THAN US SHARES IN 1981 AND 1982 AND ALSO SUFFERED EQUIVALENT OR GREATER CORRECTIONS IN 1987 AND 1990 INVESTING IN FOREIGN BOND MARKETS USED TO OFFER US INVESTORS TRUE PORTFOLIO DIVERSIFICATION AND AS RECENTLY AS 1991 EUROPEAN BOND YIELDS WERE RISING WHILE THOSE IN THE US FELL BUT AS AMERICANS INVEST MORE AND MORE MONEY OVERSEAS WE ARE SEEING THAT BOND MARKETS ARE BEGINNING TO ACT A LOT ALIKE SAYS MR CANELO WHEN AMERICAN INVESTORS BUY BONDS THEY ALSO BUY FOREIGN BONDS AND WHEN THEY GET SCARED AND SELL BONDS THEY ALSO SELL FOREIGN BONDS NOTING THAT US INVESTORS BOUGHT ROUGHLY A NET 130 BILLION OF FOREIGN SECURITIES MOSTLY BONDS LAST YEAR MR CANELO SAYS YOU ARE ALSO BEGINNING TO SEE MORE CORRELATION BETWEEN THE US AND FOREIGN BOND MARKETS BECAUSE THE US IS THE BIG GORILLA 9404120109 940412 WINDPOWERED UTILITY PROJECTS STAMFORD CONN HYDROQUEBEC SIGNED 25YEAR AGREEMENTS TO RECEIVE ELECTRICITY FROM TWO WIND FARM PROJECTS OF KENETECH CORP'S KENETECH WINDPOWER UNIT THE CANADIAN GOVERNMENTOWNED PUBLIC UTILITY SAID IT WILL BUY 40 MEGAWATTS FROM TWO WINDPOWER PLANTS KENETECH WINDPOWER BUILT IN QUEBEC HYDROQUEBEC SAID THE TWO FARMS SCHEDULED FOR COMPLETION IN 1996 EACH WILL HAVE 150 TO 200 TURBINES THE CONSTRUCTION PROJECTS FOR THE FARMS WILL COST A TOTAL OF 110 MILLION HYDROQUEBEC SAID ITS SYSTEM WILL BE THE FIRST TO COMBINE HYDROPOWER AND WINDPOWER IT PRODUCES 96 OF ITS ELECTRICITY THROUGH HYDROPOWER 9404120107 940412 BUSINESS BRIEF GIBRALTAR STEEL CORP THREE EXPANSION PROJECTS TO BOOST CAPACITY UP TO 30 GIBRALTAR STEEL CORP BUFFALO NY SAID THREE NEW EXPANSION PROJECTS WHICH COST 72 MILLION WILL BOOST ANNUAL CAPACITY AS MUCH AS 30 THE STEEL PROCESSOR BOUGHT AND IS REFURBISHING A 38INCH REVERSING MILL WHICH REDUCES THE THICKNESS OF STEEL IT ALSO PURCHASED AND IS REBUILDING A 16STRAND OSCILLATING SLITTER WHICH NARROWS THE WIDTH OF STEEL GIBRALTAR ALSO IS EXPANDING ITS ANNEALING CAPABILITIES BY BUYING TWO NEW FURNACES ANNEALING IS A HEATING PROCESS THAT SOFTENS STEEL READYING IT FOR FURTHER PROCESSING 9404120106 940412 MARKETING BRIEF NOTED WHO'S NEWS MATRA HACHETTE SA'S HACHETTE FILIPACCHI MAGAZINES INC UNIT A PUBLISHER OF CONSUMER MAGAZINES INCLUDING ROAD & TRACK ELLE AND POPULAR PHOTOGRAPHY NAMED ITS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER PAUL DEBENEDICTIS SENIOR VICE PRESIDENT RESPONSIBLE FOR NEW BUSINESS DEVELOPMENT AND OVERSIGHT OF FINANCIAL ACTIVITIES CABLE TIME WARNER INC ANNOUNCED THAT ITS FULL SERVICE NETWORK AN INTERACTIVE CABLE AND TELECOMMUNICATION SERVICE TO BE LAUNCHED LATER THIS YEAR IN ORLANDO FLA WILL INCLUDE TURNER BROADCASTING SYSTEM INC'S CNN NETWORK 9404120105 940412 WHO'S NEWS INTUIT INC INTUIT INC MENLO PARK CALIF WILLIAM CAMPBELL 53 A FORMER EXECUTIVE AT APPLE COMPUTER INC WAS NAMED TO THE NEWLY CREATED POSTS OF PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SOFTWARE CONCERN SCOTT COOK 41 THE COMPANY'S LARGEST SHAREHOLDER REMAINS AS CHAIRMAN MR CAMPBELL HELD A NUMBER OF POSITIONS AT APPLE INCLUDING GROUP EXECUTIVE OF THE US IN 1987 HE WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF APPLE'S NEWLY CREATED SOFTWARE COMPANY CALLED CLARIS UNDER MR CAMPBELL'S REIGN CLARIS'S REVENUES GREW TO 100 MILLION IN FOUR YEARS MOST RECENTLY HE HAS BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GO CORP A MAKER OF PENBASED SOFTWARE WHICH WAS RECENTLY ACQUIRED BY AT&T CORP INTUIT IS A MAKER OF PERSONALFINANCE SMALLBUSINESS AND TAXPREPARATION SOFTWARE 9404120104 940412 ECONOMY TEAMSTERS STRIKE DRAWS PEACE OVERTURES FROM ONE FIRM WHILE ANOTHER CLOSES BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESTON TRUCKING SOUGHT A SEPARATE PEACE WITH THE TEAMSTERS IN THE UNION'S WEEKOLD STRIKE WHILE THE SMALLER CHURCHILL TRUCK LINES INC SHUT ITS DOORS THE TEAMSTERS SAID THEY WOULD RETURN TO WORK IMMEDIATELY AT PRESTON A MARYLANDBASED SUBSIDIARY OF YELLOW CORP AFTER PRESTON OPTED TO PULL OUT OF TRUCKING MANAGEMENT INC THE GROUP THAT WAS NEGOTIATING A NEW CONTRACT WITH THE TEAMSTERS WHEN TALKS BROKE OFF LAST MONTH BOTH PRESTON AND CHURCHILL A 68YEAR OLD FIRM BASED IN CHILLICOTHE MO HAD BEEN UNDER FINANCIAL STRAIN BEFORE THE STRIKE THE STRIKE CONTINUES AGAINST 20 COMPANIES INCLUDING YELLOW CORP'S LARGER TRUCKING UNIT YELLOW FREIGHT SYSTEM A SPOKESWOMAN SAID PRESTON DECIDED TO WITHDRAW BECAUSE OF FINANCIAL HARDSHIP FROM THE STRIKE STILL THE TEAMSTERS SAID THE COMPANY'S ACTION SHOWS THAT TRUCKING MANAGEMENT'S UNITED FRONT CONTINUES TO CRUMBLE TRUCKING MANAGEMENT REPRESENTS LESSTHANTRUCKLOAD CARRIERS WHICH CONSOLIDATE SHIPMENTS FROM VARIOUS CUSTOMERS INTO A SINGLE LOAD PRESTON WHICH HAS 5000 TEAMSTER EMPLOYEES AND CHURCHILL WHICH HAD ABOUT 1500 WERE AMONG 19 SMALLER COMPANIES THAT HAD SOUGHT TO GET THEIR UNION TRUCKERS BACK TO WORK THROUGH INTERIM AGREEMENTS WITH THE TEAMSTERS CAROLINA FREIGHT CARRIERS A UNIT OF CAROLINA FREIGHT CORP REACHED SUCH A DEAL LAST WEEK WITH THE TEAMSTERS AGREEING NOT TO STRIKE CAROLINA AND THE COMPANY AGREEING TO ABIDE BY WHATEVER CONTRACT IS REACHED BETWEEN THE TEAMSTERS AND TRUCKING MANAGEMENT BUT SINCE THEN THE OTHER COMPANIES HAVEN'T MADE ANY PROGRESS TOWARD INTERIM AGREEMENTS THE UNION BLAMES TRUCKING MANAGEMENT FOR THAT BUT A NEW JERSEY TRUCKING COMPANY APA TRANSPORT CORP ACCUSED TEAMSTERS PRESIDENT RON CAREY OF SEEKING A HIGHER PRICE TAG THAN CAROLINA'S BECAUSE NEARLY 70000 TEAMSTERS REMAIN ON STRIKE THE PRESTON DEFECTION WON'T HAVE A BIG IMPACT ON ITS OWN AND TRUCKING MANAGEMENT OFFICIALS WERE GIVING NO GROUND YESTERDAY SPEAKING BEFORE PRESTON'S ACTION ROBERT YOUNG CHAIRMAN OF THE NEGOTIATING GROUP SAID THE TRUCKING COMPANIES MIGHT NEED FURTHER CONCESSIONS IF THE TWO SIDES RESUME TALKS BECAUSE THE COMPANIES HAVE LOST BUSINESS DURING THE STRIKE TRUCKING MANAGEMENT'S FINAL CONTRACT OFFER TO THE TEAMSTERS WOULD ALLOW USE OF PARTTIMERS AND RAIL SHIPMENT OF SOME ITEMS THE HAULERS SAY THEY NEED THE CONCESSIONS TO COMPETE WITH NONUNION HAULERS AND WITH PACKAGE COMPANIES SUCH AS UNITED PARCEL SERVICE OF AMERICA INC TEAMSTERS SAY THE COMPANIES' PROPOSAL WOULD THREATEN THEIR JOB SECURITY AND CREATE LOWWAGE JOBS WITH LITTLE OR NO BENEFITS MR YOUNG WHO IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ARKANSAS BEST CORP A LESSTHANTRUCKLOAD COMPANY BASED IN FORT SMITH ARK SAID HIS GROUP'S PROPOSED CONTRACT WOULD ALLOW USE OF PARTTIMERS AND RAILROADS ONLY AS WORKERS RETIRE OR NEW BUSINESS IS ADDED BECAUSE THE STRIKE HAS DIVERTED BUSINESS TO COMPETITORS MR YOUNG SAID HIS COMPANY WOULD PROBABLY LEAVE 20 TO 25 OF ITS WORKERS ON FURLOUGH WHEN THE STRIKE ENDS MAKING IT UNLIKELY IT COULD ENACT A NEW CONTRACT'S COSTSAVING MEASURES ANY TIME SOON IT APPEARS TO ME WE'RE GOING TO BE PLAYING CATCHUP HE SAID AND TRUCKING MANAGEMENT COMPANIES MAY NEED ADDITIONAL STEPS TO MAKE US MORE COMPETITIVE POSSIBLY IN OTHER SECTIONS OF THE CONTRACT THAT'S JUST ANOTHER EFFORT TO SCARE OUR PEOPLE A TEAMSTERS SPOKESMAN SAID 9404120103 940412 TECHNOLOGY & HEALTH VACCINE HELPS IN SKIN CANCER RESEARCHERS SAY BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO RESEARCHERS TREATING A HIGHRISK GROUP OF PATIENTS HAVING MALIGNANT MELANOMA FOUND THEY COULD GREATLY REDUCE RECURRENCE OF THE SKIN CANCER BY USING AN EXPERIMENTAL VACCINE DAVID BERD AND COLLEAGUES AT THOMAS JEFFERSON UNIVERSITY IN PHILADELPHIA GAVE THE VACCINE TO 47 PATIENTS WITH ADVANCED MELANOMA CASES WHERE THE CANCER HAS SPREAD TO THE LYMPH NODES EVEN AFTER SURGERY ABOUT 80 OF SUCH PATIENTS EXPERIENCE A RECURRENCE OF THE TUMOR WHICH IS OFTEN FATAL HOWEVER DR BERD SAID 60 OF HIS VACCINATED PATIENTS REMAINED TUMORFREE AFTER THREE YEARS OF FOLLOWUP OBSERVATION HISTORICALLY ONLY 20 OF PATIENTS HAVE REMAINED CLEAR OF CANCER WITHOUT THE VACCINE HE SAID WHILE SEVEN OR EIGHT GROUPS WORLDWIDE ARE WORKING ON SUCH A CANCER VACCINE WITH VARYING DEGREES OF SUCCESS DR BERD SAID AS FAR AS I KNOW NO ONE HAS PRODUCED THE RESULTS WE'VE PRODUCED THE THOMAS JEFFERSON VACCINE IS MADE FROM AN INDIVIDUAL PATIENT'S TUMOR CELLS WHICH ARE TREATED WITH RADIATION TO PREVENT THE CANCER FROM SPREADING THE CELLS ARE THEN COUPLED TO A CHEMICAL CALLED DINITROPHENYL OR DNP USED FOR 50 YEARS TO BOOST THE IMMUNE RESPONSE IN ANIMAL STUDIES FINALLY THE PATIENTS ARE GIVEN A COMMON CHEMOTHERAPY AGENT CALLED CYCLOPHOSPHAMIDE THE VACCINE WORKS BEST AT PREVENTING RECURRENCE IN PATIENTS WHOSE TUMORS ARE SUFFICIENTLY SMALL TO BE SURGICALLY EXCISED WE'VE TRIED GIVING IT IN MORE ADVANCED MELANOMA BUT IT DOESN'T WORK NEARLY AS WELL DR BERD SAID EVENTUALLY DR BERD'S GROUP WOULD LIKE TO MOVE AWAY FROM THE CUSTOMIZED APPROACH OF USING INDIVIDUAL PATIENTS' CELLS AND STANDARDIZE THE VACCINE THIS MIGHT BE ACHIEVED BY SYNTHESIZING PEPTIDES OR PROTEIN FRAGMENTS ON THE SURFACE OF CANCER CELLS THAT RALLY THE IMMUNE RESPONSE AT THIS POINT WE CAN TREAT ONLY 20 PATIENTS AT A TIME HE SAID DR BERD SAID HIS GROUP RECENTLY WAS AWARDED A US PATENT ON THE VACCINE TECHNIQUE HE PRESENTED HIS RESULTS AT A MEETING OF THE AMERICAN ASSOCIATION FOR CANCER RESEARCH HERE 9404120102 940412 INTERNATIONAL GERMAN FIRM TO PULL BABY FOOD BAD HOMBURG GERMANY ALTANA AG SAID IT WILL WITHDRAW A BABY FOOD THAT WAS AMONG SEVERAL SAID BY A GERMAN ECOLOGICAL INSTITUTE TO SHOW HIGHERTHANPERMITTED PESTICIDE LEVELS IN THE FUTURE THE APPLE AND PEACHAPPLE BABY FOODS PRODUCED BY THE COMPANY'S MILUPA UNIT WILL USE ONLY FRUIT FROM ORCHARDS THAT DON'T USE PESTICIDES OR FERTILIZERS CHAIRMAN KLAUS SCHWEICKART SAID 9404120101 940412 FIDELITY BANKS SET REVAMPING PLAN FOR MACY PROPOSAL WOULD GIVE THEM CONTROL OF BIG RETAILER OTHERS MAY OFFER IDEAS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL LESS THAN A MONTH AFTER RH MACY & CO UNVEILED THE OUTLINE OF ITS REORGANIZATION PLAN ITS BANKS AND CREDITOR FIDELITY INVESTMENTS INTEND TO PROPOSE A RIVAL PLAN THAT WOULD BE MUCH STINGIER TO BONDHOLDERS UNDER THE PLAN TO BE UNVEILED TO COURTAPPOINTED MEDIATOR CYRUS VANCE TODAY CONTROL OF MACY WOULD PASS TO THE BANKS AND FIDELITY AFTER MACY EMERGES FROM CHAPTER 11 BANKRUPTCYCOURT PROTECTION FEDERATED DEPARTMENT STORES INC A MACY CREDITOR THAT HAS STATED ITS INTENTION TO MERGE THE TWO CHAINS WOULD BE PAID IN FULL BUT THE PLAN ISN'T LIKELY TO BE THE LAST WORD ON WHAT HAPPENS TO MACY WHICH HAS BEEN IN BANKRUPTCYCOURT PROCEEDINGS SINCE JANUARY 1992 PROPONENTS SAY IT LEAVES SOME ROOM FOR NEGOTIATION AND SECURED CREDITORS HOPE SOME OF THEIR VIEWS WILL BE REFLECTED IN THE REVISED PROPOSAL THAT MACY ITSELF IS EXPECTED TO FILE WITH MR VANCE ON MAY 3 MOREOVER CINCINNATIBASED FEDERATED PLANS TO MEET WITH MR VANCE ON EITHER THURSDAY OR FRIDAY TO DISCUSS WHEN IT MAY APPROACH MACY'S CREDITORS WITH ITS OWN ALTERNATIVE PROPOSAL FOR A PLAN OF REORGANIZATION A FEDERATED SPOKESWOMAN SAID STILL ANOTHER PROPOSAL COULD COME FROM MACY BONDHOLDERS WHOSE ATTORNEY ROBERT MILLER INTENDS TO MEET WITH MR VANCE LATER THIS WEEK THE CREDITORS AND MACY MANAGERS ARE STRUGGLING TO PLACE A VALUE ON THE NEW YORKBASED RETAILER THAT WILL DETERMINE HOW NEW SECURITIES WILL BE DISTRIBUTED AND WHO WILL CONTROL THE REORGANIZED COMPANY A SURPRISING RIFT OVER VALUE DIVIDED THE MACY BOARD LAST MONTH RESULTING IN A COMPROMISE THAT WAS PRESENTED TO CREDITORS MARCH 23 UNDER THAT PROPOSAL MACY WOULD DISTRIBUTE SECURITIES VALUED AT 36 BILLION TO ALL OF ITS CREDITORS WITH AN ADDITIONAL 500 MILLION TO COME IF THE RETAILER ROSE IN VALUE BUT THAT PLAN DREW FIRE FROM SEVERAL FRONTS IN THEIR PLAN THE BANKS AND FIDELITY PROPOSE VALUING MACY AT 34 BILLION MACY'S REORGANIZATION IS LARGELY IN THEIR HANDS BECAUSE THE RETAILER BORROWED AGAINST JUST ABOUT ALL ITS ASSETS INCLUDING ITS NAME IT HAS TO REPAY THOSE CREDITORS BEFORE BONDHOLDERS ARE ENTITLED TO RECEIVE ANYTHING FURTHER FIDELITY CONTROLS A 490 MILLION STAKE IN THREE CLASSES OF BANK DEBT ENOUGH TO BLOCK ANY PLAN IT DOESN'T LIKE THE GROUP PRESENTED ITS PLAN TO MACY MANAGEMENT THURSDAY AND SEVERAL PEOPLE WHO ATTENDED THE MEETING SAID THEY GOT A FRIENDLY HEARING MACY HASN'T ENDORSED THE PROPOSAL AND DECLINED TO COMMENT CHAIRMAN'S STATEMENT HOWEVER SECURED CREDITORS SAY MYRON E ULLMAN III MACY'S CHAIRMAN OPENED THE MEETING BY REASSURING THEM THAT HE WAS IN CONTROL OF THE BOARD AND THE PROCESS ACCORDING TO A PERSON FAMILIAR WITH THE MEETING TO THE CREDITORS THE COMMENT SUGGESTED THAT OUTSIDE DIRECTOR LAURENCE TISCH WHO FORCED LAST MONTH'S COMPROMISE WOULD NOT CARRY ENOUGH WEIGHT TO GET HIS WAY MACY'S SECURED CREDITORS ARE OWED 24 BILLION PLUS INTEREST ITS PUBLIC BONDHOLDERS ARE OWED 13 BILLION BUT ONLY HOLDERS OF THE MOST SENIOR BONDS WOULD RECEIVE NEW SECURITIES IN THIS CASE WARRANTS UNDER THE BANKS' PROPOSAL THE WARRANTS WOULD ENTITLE HOLDERS OF MACY'S BONDS DUE IN 1998 TO 6 OF MACY'S STOCK ONCE THE RETAILER'S VALUE ROSE TO 38 BILLION THE POWER BROKER AMONG SENIOR BONDHOLDERS IS OMEGA ADVISERS A PRIVATE INVESTMENT PARTNERSHIP MANAGED BY LEON COOPERMAN WHICH HOLDS 40 MILLION FACE AMOUNT OF THE 379 MILLION ISSUE DUE IN 1998 OMEGA PAID BETWEEN 35 CENTS AND 40 CENTS ON THE DOLLAR FOR ITS BONDS LAST SUMMER ACCORDING TO PEOPLE FAMILIAR WITH THE FUND OUR STRATEGY IS TO CUT A DEAL WITH LEON COOPERMAN ONE SECURED CREDITOR SAYS THE PRICE OF MACY BONDS ROSE SHARPLY IN THIN TRADING YESTERDAY MACY 14 1/2 SENIOR BONDS DUE IN 1998 GAINED FOUR POINTS TO CLOSE AT 50 OR 500 FOR EVERY 1000 FACE AMOUNT AN 87 INCREASE THE BONDS DUE IN 2001 GAINED THREE POINTS TO END THE DAY AT 20 THE ZEROCOUPON BONDS DUE IN 2006 CLOSED AT FIVE UP ONE POINT PATRICK M REILLY CONTRIBUTED TO THIS ARTICLE 9404120100 940412 WHO'S NEWS DIED ALVIN W VOGTLE JR 75 RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SOUTHERN CO SUNDAY IN ATLANTA 9404120099 940412 TRACKING TRAVEL BY CARL QUINTANILLA THE CELLULAR PHONE CRAZE STRIKES THE TRAVEL CROWD THE HIGHTECH GADGETS ARE QUICKLY BECOMING A STAPLE FOR TRAVELERS WHO WANT TO BE IN CONSTANT CONTACT SOME USE THE PHONES TO BOOK HOTEL ROOMS WHILE AWAITING THEIR BAGGAGE AT THE AIRPORT ONE WASHINGTON DC BUSINESSMAN RECENTLY RESCHEDULED A FLIGHT WHILE STRANDED IN A STALLED CARRENTAL SHUTTLE TRAVELERS ARE FINDING THAT PHONES PUT YOU IN CONTROL SAYS MIKE HOUGHTON A SPOKESMAN FOR THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION BOSTON'S LENOX HOTEL PROVIDES GUESTS WITH PERSONAL CELLULAR PHONES ON REQUEST THE PHONES COST 175 A MINUTE TO USE SIMS COMMUNICATIONS OF DELRAY BEACH FLA IS MARKETING VENDING MACHINES THAT RENT CELLULAR PHONE KITS COMPLETE WITH BATTERIES AN ADAPTER AND A CASE THE MACHINES WHICH LOOK LIKE SIXFOOTHIGH CELLULAR PHONES ARE IN 93 LOCATIONS INCLUDING AIRPORTS AND HOTELS IN CHICAGO LOS ANGELES MIAMI AND SAN FRANCISCO THE KIT RENTS FOR 495 A DAY PLUS LOCAL PHONE CHARGES OF 160 A MINUTE AND 205 A MINUTE FOR LONGDISTANCE WHEN THE PHONE IS RETURNED THE MACHINE PRINTS A BILL AND CHARGES THE FEE TO A CREDIT CARD SIMS CHAIRMAN DONALD MARKS EXPECTS TO ADD NEARLY 1400 MACHINES WITHIN THE NEXT YEAR AND WITH THE HUGE MARKET FOR CELLULAR PRODUCTS IN THE FAR EAST HE SAYS THAT NUMBER COULD CLIMB TO 2000 MIAMI FIGHTS TO SHED ITS IMAGE AS A DANGEROUS TOURISM SPOT BUT IT PERSISTS A YEAR AFTER THE WELLPUBLICIZED MURDER OF A GERMAN TOURIST OFFICIALS ARE BATTLING AN IMAGE THAT THREATENS MIAMI'S 14 BILLION TOURISM INDUSTRY PUBLIC AND PRIVATE INVESTORS ARE PLANNING 47 BILLION IN TRANSPORTATION PROJECTS THE US ARMY CORPS OF ENGINEERS IS ADDING 23 MILLION OF SAND TO MIAMI'S BEACHES WE'RE COMING OUT STRONG SAYS MERRETT STIERHEIM PRESIDENT OF THE GREATER MIAMI CONVENTION AND VISITORS BUREAU I'M NOT SUGGESTING WE'RE HOME YET BUT I'M VERY BULLISH VISITORS TO MIAMI ROSE JUST SLIGHTLY IN 1993 UP TO 112 MILLION FROM 111 MILLION THE YEAR EARLIER BUT WHILE TOURIST ROBBERIES FELL NEARLY 40 LAST YEAR TO 392 INCIDENTS FOREIGN TOURISTS CONTINUE TO AVOID THE AREA SUELY AUERBACH OF FLORIDA NETWORK TOURS NORTH MIAMI BEACH SAYS EUROPEAN BUSINESS IS DOWN 85 FROM LAST YEAR EUROPEANS SIMPLY THINK IF THEY COME HERE THEY'LL BE MURDERED SHE SAYS AT MIAMI'S SUNBEACH TRAVEL WHICH CATERS PRIMARILY TO EUROPEANS GUESTSERVICE COORDINATOR ANGELA SOTO BOOKED ONLY 215 FOREIGN VISITORS IN MARCH DOWN FROM 2416 A YEAR EARLIER THE DOWNTURN FORCED HER TO LAY OFF FOUR OF SEVEN EMPLOYEES TO CUT DOWN ON ATTACKS ON FOREIGNERS CITY OFFICIALS HAVE UNVEILED SEVERAL CRIMEFIGHTING PROGRAMS INCLUDING THE TOURISTORIENTED POLICE TOP MULTILINGUAL POLICE WHO PATROL THE AIRPORT AND SURROUNDING AREAS ANOTHER TRAP OR THE TOURIST ROBBERY ABATEMENT PROGRAM HAS POLICE WORKING TO IDENTIFY LOST OR CONFUSED TOURISTS BUT PROBLEMS STILL ERUPT MIAMI POLICE LAST MONTH FOUND A CORPSE UNDER A BED AT THE TRAVELERS HOTEL A GUEST WHO UNKNOWINGLY SLEPT WITH THE BODY IN HIS ROOM WAS A GERMAN TOURIST MR STIERHEIM BELIEVES VISITORS WILL RETURN ONCE THE SPOTLIGHT SHINES ON ANOTHER CITY CRIME IS EVERYWHERE IN URBAN AMERICA HE SAYS WE JUST HAD THE MISFORTUNE OF HAVING A FEW TOURISTS ATTACKED TRAGICALLY SOME OF THEM DIED MIAMI HAS REASON TO BE OPTIMISTIC IT HOSTS SUPER BOWL XXIX IN JANUARY AND THE INTERNATIONAL TENNIS HALL OF FAME RECENTLY NAMED MIAMI ITS 1994 CITY OF THE YEAR ACTOR SYLVESTER STALLONE PLANS TO OPEN MIAMI'S FIRST PLANET HOLLYWOOD RESTAURANT THIS SUMMER FOR NEWS JUNKIES VACATIONING CAN BE PAINFUL NEWSPAPERS ARE SOMETIMES SCARCE OVERSEAS AND WHEN THEY ARE AVAILABLE THEY'RE OFTEN A DAY OR TWO LATE JUST TRY GETTING A NEWSPAPER ON A CRUISE SHIP BUT THERE'S HOPE CPC COMMUNICATIONS NEW YORK HAS UNVEILED AN ELECTRONIC NEWS SERVICE CALLED INFOWIRE WHICH TRANSMITS A DAILY 10PAGE EVENING NEWSLETTER VIA THE FAX MACHINE SUBSCRIBERS CAN FORWARD THEIR FAX MACHINES SO THE NEWSLETTER FOLLOWS THEM TO THEIR DESTINATION WHEN YOU GO TO A REMOTE LOCATION YOU'RE OFFLINE SAYS PUBLISHER PAUL SCHAYE WE'RE JUST GIVING NEWS JUNKIES THEIR FIX INFOWIRE TARGETS THE FINANCIAL COMMUNITY IT FEATURES BUSINESS AND POLITICAL NEWS SPORTS SCORES AND THE DAY'S CLOSING STOCK MARKET FIGURES SUBSCRIPTIONS ARE 99 A MONTH AND 199 A MONTH FOR TRANSMISSIONS WITH INDIVIDUAL CLOSING STOCK PRICES CPC HAS SOLD ABOUT 1000 SUBSCRIPTIONS SINCE THE NEWSLETTER'S DEBUT IN EARLY MARCH AND IT EXPECTS A CIRCULATION OF ABOUT 10000 BY YEAR'S END IN HONOR OF THE COMING TAX DEADLINE THE SANDY LANE HOTEL IN BARBADOS IS KNOCKING 1040 OFF THE TOTAL ROOM RATE FOR A 10NIGHT VACATION THROUGH DEC 15 IF IT'S BOOKED AND CONFIRMED BY MIDNIGHT FRIDAY THE WALDORF TOWERS NEW YORK IS OFFERING A 1040 WEEKEND PACKAGE GOOD THROUGH 1994 IF BOOKED BY THE TAX DEADLINE EVERYBODY KNOWS WHAT 1040 IS SAYS A SANDY LANE SPOKESMAN IT'S THE NUMBER WE ALL DREAD US PASSPORT COLORS ARE CHANGING AGAIN LAST APRIL THE STATE DEPARTMENT CHANGED PASSPORT COVERS FROM BLUE TO GREEN BUT AIRLINES COMPLAINED THE SWITCH WAS TOO CONFUSING BLUE COVERS RETURNED IN MARCH AND A SPOKESMAN FOR THE AIR TRANSPORT ASSOCIATION JOKES WE'RE ALL BREATHING A LITTLE EASIER 9404120098 940412 MARKETSCAN FOOD FIRMS CONCOCT DINO NUGGETS GAUDY YOGURT TO ATTRACT KIDS BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL MARKETING HAS BECOME CHILD'S PLAY FOR MANY OF THE NATION'S FOOD COMPANIES CEREAL MAKERS HAVE LONG CATERED TO CHILDREN AND THEIR SWEET TEETH BUT FOOD MAKERS OF ALL STRIPES ARE NOW ROLLING OUT DOZENS OF JUVENILE VERSIONS OF OTHER FOOD PRODUCTS THERE ARE KIDDIE CHEESES FRENCH FRIES GRAHAM CRACKERS TURKEY SAUSAGES AND OATMEAL MA GEDNEY CO IN CHASKA MINN HAS EVEN LAUNCHED DINOSAURSIZE DILLS MINNESOTA PICKLES OF PREHISTORIC SIZE FOR KIDS RENA KARL EDITOR OF THE MARKETING TO KIDS REPORT NEWSLETTER IN ENCINITAS CALIF ESTIMATES THAT 650 FOOD AND GROCERY PRODUCTS FOR KIDS WERE INTRODUCED IN THE PAST FIVE YEARS SUCH PRODUCTS WERE PRETTY MUCH UNHEARD OF BEFORE SHE SAYS SUPERMARKET SALES OF MANY OF THESE NEW PRODUCTS ARE SURGING ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE BUT TARGETING KIDS IS TRICKY BECAUSE THE PRODUCT HAS TO APPEAL TO KIDS BUT ALSO SATISFY NUTRITIONMINDED PARENTS WE HAVE TO SERVE SEVERAL AUDIENCES SAYS DAN STIFTER DIRECTOR OF NEW PRODUCTS AT JEROME FOODS INC THE COMPANY'S NEW GOBBLESTIX TURKEY SAUSAGE PACKAGE TRIES TO DO THAT BY SHOWING A CRAYON DRAWING OF A TURKEY IN SUNGLASSES AND SNEAKERS WHILE STRESSING TO PARENTS THAT IT'S LOW IN FAT MARKETERS ARE DEVELOPING MORE NEW PRODUCTS FOR KIDS BECAUSE THEY BELIEVE TODAY'S INCREASINGLY INDULGENT PARENTS GIVE THEIR CHILDREN MORE SAY IN THE SUPERMARKET MANY PARENTS FEELING GUILTY ABOUT NOT SPENDING MORE TIME ON MEAL PREPARATION ARE EAGER TO PLEASE JUNIOR COMPANIES SAY ESPECIALLY WHEN THE PRODUCTS OFFER CONVENIENCE AND AT LEAST SOME NUTRITIONAL BENEFITS TAYLOR STRONG A SEVENYEAROLD IN THE NEW YORK CITY BOROUGH OF QUEENS ISN'T ALLOWED MUCH CANDY WHEN HE GOES SHOPPING WITH HIS FATHER BUT AMONG THE MANY KIDS' PRODUCTS THAT HIS PARENTS DON'T FIND OBJECTIONABLE ARE YOGURT DECORATED WITH GREEN AND PURPLE LAYERS CHICKEN NUGGETS SHAPED LIKE DINOSAURS AND SALAD DRESSING PIZZA RANCH FLAVOR CHANCES ARE DAD WILL BUY THE PIZZA RANCH DRESSING ON HIS NEXT SHOPPING TRIP SAYS TAYLOR NEVERTHELESS NUTRITIONISTS ARE APPALLED AT MANY OF THE NEW CREATIONS WHICH THEY SAY ARE CONTRIBUTING TO OBESITY IN CHILDREN THE TREND IS IN TURNING ADULT FOODS INTO UNHEALTHY FOODS COMPLAINS JAYNE HURLEY ASSOCIATE NUTRITIONIST FOR THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST FOR INSTANCE SHE SAYS DINOSAURSHAPED CHICKEN NUGGETS ARE HIGH IN FAT AND THE KIDS' YOGURTS ARE TOO SWEET AND HAVE ARTIFICIAL COLORING COMPANIES CLAIM THEY ARE TRYING TO MAKE PRODUCTS MORE NUTRITIONALLY ACCEPTABLE KRAFT'S CHEEZ WHIZ SQUEEZABLE PASTEURIZED PROCESS CHEESE SAUCE A SQUIRTABLE VERSION OF THE FAMILIAR CHEESE SAUCE NOTES IN SMALL LETTERS ON THE PACKAGE THAT IT HAS ONETHIRD LESS FAT THAN BUTTER OR MARGARINE ALTHOUGH GENERAL MILLS SWEETENS ITS YOPLAIT TRIX KIDS' YOGURT PARENTS ARE BUYING IT BECAUSE IT IS STILL RELATIVELY LOW IN FAT AND HAS CALCIUM MARKETERS CONTEND THEY CAN'T MAKE FOODS TOO HEALTHY BECAUSE KIDS WON'T TRADE TASTE FOR NUTRITION FOR EXAMPLE TYSON FOODS INC'S LOONEY TUNES FROZEN DINNERS HAVE FLOPPED BECAUSE CHILDREN DISCOVERED THAT THE PRODUCT'S COLORFUL PACKAGES CONTAINED BLAND CHICKEN AND VEGETABLES AND WHEN CONAGRA INC EXPERIMENTED WITH LOWERFAT VERSIONS OF ITS KID CUISINE FROZEN DINNERS TWO YEARS AGO THE COMPANY FOUND IT COULDN'T GET AWAY WITH SERVING BAKED CHICKEN KIDS INSISTED ON FRIED THE COMPANY REFORMULATED THE DINNERS LOWERING THE SALT AND FAT LEVEL OF THE VEGETABLES WHILE CHANGING THE CHICKEN TO FRIED THE SHEER SIZE OF THE MARKET IS WORTH ALL THIS EFFORT KIDS AGED 12 AND UNDER INFLUENCED THE PURCHASE OF 949 BILLION OF FOOD AND BEVERAGES BY THEIR PARENTS LAST YEAR ESTIMATES JAMES MCNEAL PROFESSOR OF MARKETING AT TEXAS A&M UNIVERSITY COMPARED WITH 824 BILLION TWO YEARS BEFORE I DO FALL FOR THE GIMMICKY THINGS FOR THE KIDS SAYS DANA ORIHEL A 37YEAROLD MOTHER OF TWO IN SAN ANTONIO TEXAS PARENTS ARE SUCKERS RATHER THAN FORCING HER FIVEYEAROLD DAUGHTER TRACEE TO EAT SANDWICHES FOR LUNCH SHE BUYS OSCAR MAYER LUNCHABLE FUN PACKS A BRIGHT YELLOW BOX FILLED WITH AN ASSORTMENT OF HAM CHEESE AND CRACKERS PLUS A REESE'S PEANUTBUTTER CUP SOME PARENTS SAY THEY ENJOY THE JUVENILE PRODUCTS THEMSELVES SUCH AS THE FLINTSTONES KRAFT MACARONI & CHEESE DINNER WHICH INCLUDES PASTA SHAPED LIKE THE CARTOON CHARACTERS I LIKE TO TAP INTO THE CHILD IN ME SAYS PEGGY ELLINGSON A 39YEAROLD MARKETING DIRECTOR AND MOTHER OF TWO IN MINNEAPOLIS SHE DOESN'T WANT TO DEPRIVE HER TWO DAUGHTERS AGED TWO AND FIVE OF SOME FUN AT MEALTIME SHE SAYS AS LONG AS THEY EAT THEIR BROCCOLI AND STRING BEANS TO BALANCE THEIR DIETS SOME CHILDREN ON THEIR OWN ARE BECOMING MORE CONCERNED ABOUT A HEALTHY DIET BRYAN MS ORIHEL'S EIGHTYEAROLD SON IN SAN ANTONIO WAS RECENTLY ENLIGHTENED ABOUT THE PERILS OF FAT SALT AND SUGAR IN HIS SCHOOL'S NUTRITION CLASS NOW HE IS AFRAID TO EAT KIDS' YOGURT BECAUSE HE THINKS THERE'S A BUNCH OF FAT AND SUGAR IN IT MEANWHILE FUNGLE'S FUN FOODS INC A CALIFORNIA HEALTHFOOD COMPANY HAS STARTED MARKETING FATFREE VEGGIE FRANKS N' BEANS FROZEN DINNERS FOR KIDS CHRIS KYSAR THE COMPANY'S GENERAL MANAGER DESCRIBES AT LENGTH THE HEALTHFULNESS OF THE VEGETARIAN PRODUCT BUT HE QUICKLY ADDS THAT IT REALLY TASTES GREAT AND THAT THE PACKAGE IS DECORATED WITH AN ENVIRONMENTALLY CONSCIOUS CARTOON CHARACTER HE EXPLAINS I DON'T WANT TO TURN PEOPLE OFF 9404120097 940412 TEXACO PARTNERS PLAN TO DEVELOP ARCTIC FIELDS WESTERN VENTURE IN RUSSIA CARRIES BIG RISKS TIED TO POLITICS LOGISTICS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL TEXACO INC AND THREE OTHER OIL GIANTS FORMED A COMPANY TO EXPLORE AND DEVELOP HUGE FIELDS BENEATH THE ISOLATED TUNDRA OF RUSSIA'S ARCTIC CIRCLE TEXACO AND ITS PARTNERS EXPECT THE PROJECT TO BE AMONG THE FIRST LARGESCALE WESTERN OIL VENTURES APPROVED BY THE RUSSIAN GOVERNMENT TEXACO BASED IN WHITE PLAINS NY HOLDS A 30 INTEREST IN THE VENTURE AS DOES EXXON CORP OF IRVING TEXAS AMOCO CORP CHICAGO AND OSLO'S NORSK HYDRO SA EACH OWN A 20 SHARE OF THE COMPANY TEXACO OFFICIALS HAVE BEEN WORKING ON THE PROJECT FOR MORE THAN FOUR YEARS AND DECIDED TO BRING IN PARTNERS TO SHARE THE COSTS AND RISKS BOTH POLITICAL AND LOGISTIC ACCORDING TO INDUSTRY ESTIMATES THE PROJECT COULD REQUIRE EXPENDITURES EXCEEDING 50 BILLION OVER ITS 50YEAR LIFE THIS IS ONE OF THE MEGAPROJECTS IN THE WORLD SAID PETER BIJUR A TEXACO SENIOR VICE PRESIDENT RIGHT FROM THE GETGO WE KNEW THE RISKS WERE ENORMOUS THE OIL FIELDS LIE IN A VIRTUALLY UNINHABITED 2847SQUAREMILE REGION OF RUSSIA CALLED TIMAN PECHORA ABOUT 1100 MILES NORTHEAST OF MOSCOW BESIDES HAVING TO BUILD ROADS PIPELINES HOUSES AND OTHER INFRASTRUCTURE AND TO DRILL IN WINTER TEMPERATURES AS LOW AS MINUS 70 DEGREES TEXACO AND ITS PARTNERS SAID THEY WILL HAVE TO BUILD A TANKER TERMINAL IN THE PECHORA SEA TO EXPORT THE CRUDE ICE COVERS THE WATER SEVEN MONTHS OF THE YEAR SO SPECIAL TANKERS WOULD HAVE TO BE BUILT THE POLITICAL CHALLENGES ARE EQUALLY DAUNTING AND MORE IMMEDIATE BECAUSE OF UNCERTAINTY IN RUSSIA MR BIJUR SAID THE PARTNERS WON'T DRILL WELLS UNTIL THEY COMPLETE NEGOTIATIONS OF A CONTRACT WITH THE RUSSIAN GOVERNMENT CALLED A PRODUCTIONSHARING AGREEMENT ON HOW MUCH OIL THE COUNTRY WILL RECEIVE FROM TIMAN PECHORA'S OUTPUT MR BIJUR SAID THAT UNDER THE TERMS BEING DISCUSSED RUSSIA WOULD RECEIVE MORE THAN 50 OF PRODUCTION IN ADDITION THE GROUP ALSO WILL SEEK TO HAVE ITS AGREEMENT APPROVED BY RUSSIA'S PARLIAMENT MR BIJUR PREDICTED THAT COULD HAPPEN LATER THIS YEAR T DON STACY AN AMOCO EXPLORATION OFFICIAL ALSO EXPRESSED CONFIDENCE SAYING HE JUST RETURNED FROM RUSSIA AND RECEIVED ASSURANCES FROM SEVERAL TOPLEVEL GOVERNMENT OFFICIALS THAT THIS PROJECT IS ON A PRIORITY TRACK TO GET APPROVAL HE ACKNOWLEDGED HOWEVER THAT THE PROJECT'S LARGEST RISK IS POLITICAL RISK OTHERS WERE MORE SKEPTICAL ON THE TIMETABLE THERE'S THE TENDENCY OF INDIVIDUAL AGENCIES IN MOSCOW TO TIE YOU IN KNOTS SAID THANE GUSTAFSON A DIRECTOR IN THE WASHINGTON OFFICE OF CONSULTANTS CAMBRIDGE ENERGY RESEARCH ASSOCIATES THE TIMAN PECHORA PROJECT IS ONE OF MORE THAN A HALFDOZEN LARGE WESTERN OILCOMPANY EFFORTS SEEKING RUSSIAN PRODUCTIONSHARING AGREEMENTS AND SUBSEQUENT PARLIAMENTARY APPROVAL THESE PROJECTS WILL PROBABLY HAPPEN SOONER OR LATER IT'S A QUESTION OF WHEN SAID PETER HAULDER A RUSSIAN OIL SPECIALIST IN LONDON WITH CONSULTANTS ARTHUR D LITTLE INC IF THEY RECEIVE APPROVALS THE TIMAN PECHORA PARTNERS WILL START SPENDING MORE THAN 100 MILLION TO DRILL AND PERFORM TESTS OVER THREE YEARS IN THE ROMAN TREBSA FIELD THE LARGEST OF 11 FIELDS DISCOVERED SO FAR IN THE AREA THIS APPRAISAL WORK IS DESIGNED TO BETTER UNDERSTAND THE FIELD'S PRODUCTION POTENTIAL AT THIS POINT THE GROUP ESTIMATES TOTAL RECOVERABLE RESERVES OF MORE THAN TWO BILLION BARRELS OF OIL FROM THE ENTIRE AREA BUT OFFICIALS SAY THE ESTIMATE IS CONSERVATIVE I HOPE IT'S A LOT MORE MR BIJUR SAID THE APPRAISAL WORK SHOULD EVENTUALLY MAKE CLEAR THE AMOUNT THE NEXT PHASE OF TIMAN PECHORA ENTAILING EARLY DEVELOPMENT OF AT LEAST ONE FIELD AND THE CONSTRUCTION OF THE TANKER TERMINAL WOULD QUICKLY REQUIRE SPENDING OF SEVERAL BILLION DOLLARS MR BIJUR SAID HE SAID THE GROUP EXPECTS PRODUCTION TO CLIMB TO ABOUT 120000 BARRELS OF CRUDE A DAY SOMETIME BETWEEN THE YEARS 2000 AND 2003 9404120096 940412 MARKETING & MEDIA POCKET TELEPHONES FACE DIFFICULTIES FCC GROUP IS TOLD BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE EMERGING POCKETPHONE INDUSTRY MAY BE UNABLE TO DEVELOP ENOUGH COMPETITIVE MUSCLE TO TAKE ON THE CELLULARTELEPHONE INDUSTRY UNLESS THE FEDERAL COMMUNICATIONS COMMISSION QUICKLY REVISES ITS PLANNED LICENSING PROCEDURES A GROUP OF ANALYSTS SAID THE EXPERTS TESTIFYING BEFORE A TASK FORCE THE COMMISSION ESTABLISHED LAST MONTH DISAGREED ABOUT THE LIKELY LEVEL OF DEMAND FOR THE NEW SERVICES BUT THEY WARNED THE COMMISSION AGAINST DAWDLING AS IT ESTABLISHES PROCEDURES TO LICENSE POCKET PHONES AND OTHER ADVANCED WIRELESSCOMMUNICATIONS SERVICES CLASSIFIED AS PERSONAL COMMUNICATIONS SERVICES IF LICENSING PROCEDURES GET BOGGED DOWN THE COMMISSION WAS TOLD THE INDUSTRY WILL FLOUNDER AND THE GOVERNMENT WILL COLLECT FAR LESS THAN THE 7 BILLION TO 10 BILLION IT EXPECTS TO RAISE FROM AUCTIONING THE AIRWAVES SEVERAL PANELISTS SUGGESTED AWARDING ONLY A FEW LICENSES WITHIN RELATIVELY LARGE GEOGRAPHIC TERRITORIES THAT COULD MAKE IT EASIER FOR SUCCESSFUL BIDDERS TO CREATE SYSTEMS LARGE ENOUGH TO COMPETE WITH EXISTING CELLULARPHONE COMPANIES THE RECOMMENDATIONS CAME DURING THE FIRST OF TWO DAYS OF PANEL DISCUSSIONS HELD BY THE PCS TASK FORCE THE FCC SET UP THE TASK FORCE TO SORT THROUGH A MYRIAD OF COMPLAINTS ABOUT THE AGENCY'S DECISION LAST YEAR TO SPLIT AVAILABLE RADIO SPECTRUM INTO NUMEROUS SMALL SEGMENTS THE FCC RECEIVED 67 PETITIONS TO RECONSIDER ITS DECISION THE COMMISSION IS EXPECTED TO BEGIN AUCTIONING THE AIRWAVES LATE THIS YEAR AND COULD TAKE TWO YEARS OR SO TO COMPLETE THE PROCESS SUCCESSFUL BIDDERS MUST BUILD EXPENSIVE NETWORKS THAT USE HUNDREDS OF MICROCELLS TO HANDLE CALLS JON HULAK AN ANALYST WITH BIS STRATEGIC DECISIONS IN NORWELL MASS TOLD THE TASK FORCE THAT PERSONAL COMMUNICATIONS SERVICES WOULD PROBABLY ATTRACT SOME 172 MILLION SUBSCRIBERS PAYING A TOTAL OF 62 BILLION AFTER 10 YEARS OVER THE SHORT TERM HE SAID MOST OF THE DEMAND WILL BE DRIVEN BY BUSINESS CUSTOMERS IN THE NATION'S TOP 10 OR 15 MARKETS MR HULAK PREDICTED IT WILL TAKE SEVERAL YEARS BEFORE A BROAD CONSUMER MARKET EMERGES FIRST HE SAID INDUSTRY CONSOLIDATION WILL HAVE TO LEAVE JUST TWO OR THREE PCS COMPETITORS IN EACH MARKET INITIALLY THE SERVICE WON'T BE CHEAP HE PREDICTED THE AVERAGE MONTHLY BILL WILL BE ABOUT 45 AND EQUIPMENT WILL COST ABOUT 400 IN A DECADE THE SERVICE FEE WILL DROP TO ABOUT 35 WHILE THE PHONE WILL COST ABOUT 150 HE SAID TO HASTEN THAT PROCESS HE URGED THE COMMISSION TO REVISE ITS LICENSING SCHEME CREATING ONLY TWO OR THREE MAJOR LICENSEES IN EACH METROPOLITAN AREA THOMAS A STROUP PRESIDENT OF THE PERSONAL COMMUNICATIONS INDUSTRY ASSOCIATION PREDICTED AN EXPLOSION IN DEMAND FOR WIRELESS SERVICES HE SAID THE TRADE GROUP EXPECTS WITHIN 10 YEARS 31 MILLION SUBSCRIBERS FOR POCKET PHONE SERVICES 52 MILLION FOR CELLULAR SERVICE AND 65 MILLION FOR PAGING AND MESSAGING SERVICES 9404120095 940412 CLINTON ADVISER JORDAN TO LEAVE BOARD OF RJR NEW YORK VERNON E JORDAN JR A FRIEND AND ADVISER TO PRESIDENT CLINTON HAS DECIDED NOT TO STAND FOR REELECTION TO RJR NABISCO HOLDINGS INC'S BOARD MR JORDAN A SENIOR PARTNER AT THE WASHINGTON LAW FIRM OF AKIN GUMP STRAUSS HAUER & FELD HAD BEEN CRITICIZED FOR HIS TIES TO THE TOBACCO INDUSTRY THE CLINTON ADMINISTRATION IS PUSHING FOR A SHARP INCREASE IN CIGARETTE TAXES TO HELP PAY FOR HEALTHCARE REFORM MR JORDAN SAID HIS DECISION TO LEAVE RJR'S BOARD HAD NOTHING TO DO WITH THE ADMINISTRATION'S TOBACCO POLICIES FOR EVERYTHING THERE IS A SEASON HE SAID MR JORDAN WHOSE DECISION WAS DISCLOSED IN RJR'S NEWLY RELEASED 1993 ANNUAL REPORT HAS SERVED ON RJR'S BOARD SINCE 1980 WITH A BRIEF INTERRUPTION AFTER THE 1989 LEVERAGED BUYOUT OF RJR FORMER RJR CHAIRMAN LOUIS V GERSTNER JR ALSO CHOSE NOT TO STAND FOR REELECTION MR GERSTNER WHO RESIGNED FROM RJR ON MARCH 26 1993 TO BECOME CHAIRMAN OF INTERNATIONAL BUSINESS MACHINES CORP WAS PAID MORE THAN 2 MILLION BY RJR IN 1993 MOST OF THE PAYMENT WAS TO FUND MR GERSTNER'S RETIREMENT PACKAGE RETURNING TO RJR'S BOARD IS JOHN L CLENDENIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BELLSOUTH CORP RJR HAD A 145 MILLION LOSS IN 1993 THE RESULT OF A COSTCUTTING CHARGE IN A SYMBOLIC COSTSAVING MEASURE RJR'S 1993 ANNUAL REPORT CONTAINS TEXT AND GRAPHS ONLY WE FOUND WE COULD SAVE A FEW DOLLARS BY SKIPPING THE NICE PHOTOGRAPHS SO WE DID CHAIRMAN CHARLES M HARPER WROTE SHAREHOLDERS 9404120094 940412 TECHNOLOGY KEY SEMICONDUCTOR INDEX WAS UNCHANGED IN MARCH SAN JOSE CALIF THE LEADING INDICATOR FOR THE SEMICONDUCTOR INDUSTRY REMAINED CONSTANT IN MARCH A TRADE GROUP SAID THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID THE INDICATOR THE BOOKTOBILL RATIO WAS 113 LAST MONTH UNCHANGED FROM THE PREVIOUS MONTH THAT MEANS THAT FOR EVERY 100 WORTH OF PRODUCT SHIPPED OR BILLED MANUFACTURERS RECEIVED 113 WORTH OF NEW ORDERS OR BOOKINGS BOOKINGS IN THE NORTH AMERICAN MARKET IN MARCH BASED ON A THREEMONTH MOVING AVERAGE TOTALED 272 BILLION UP 28 FROM THE 265 BILLION RECORDED IN FEBRUARY MARCH BOOKINGS WERE 25 HIGHER THAN THE 218 BILLION POSTED IN THE SAME MONTH A YEAR AGO SEMICONDUCTOR BILLINGS FOR MARCH ALSO BASED ON A THREEMONTH MOVING AVERAGE WERE 240 BILLION UP 23 FROM THE 235 BILLION RECORDED THE PREVIOUS MONTH BILLINGS INCREASED 265 FROM THE 185 BILLION RECORDED A YEAR AGO 9404120093 940412 TECHNOLOGY & HEALTH MOTOROLA NET ROSE 46 IN 1ST PERIOD BUT STOCK PLUNGES BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL MOTOROLA INC SCHAUMBURG ILL POSTED A 46 JUMP IN FISCAL FIRSTQUARTER PROFIT BUT THE RESULTS FELL SHORT OF ANALYSTS' EXPECTATIONS SENDING THE COMPANY'S STOCK TUMBLING 64 MOTOROLA CITING STRONG DEMAND FOR CELLULAR PHONES AND SEMICONDUCTOR CHIPS SAID NET INCOME FOR THE PERIOD ENDED APRIL 2 ROSE TO 298 MILLION OR 103 A SHARE COMPARED WITH 204 MILLION OR 72 CENTS A SHARE A YEAR EARLIER SALES ROSE 29 TO 469 BILLION FROM 363 BILLION BUT MOTOROLA'S RESULTS WERE SLIGHTLY BELOW THE AVERAGE ANALYST ESTIMATE OF 104 A SHARE TALLIED BY ZACKS INVESTMENT RESEARCH INC AND SOME ANALYSTS HAD RECENTLY PREDICTED THE SCHAUMBURG ILL COMPANY WOULD HIT 114 OR HIGHER THE RESULTS WERE ISSUED NEAR THE END OF STOCK MARKET TRADING YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MOTOROLA SHARES PLUNGED 675 TO 9925 WALL STREET'S REACTION MAY HAVE MORE TO DO WITH OVERHEATED EXPECTATIONS THAN WITH MAJOR PROBLEMS AT THE COMPANY WHICH POSTED UNUSUAL GROWTH IN SEVERAL BUSINESSES FOR A COMPANY ITS SIZE I THINK ONCE PEOPLE SIT DOWN AND THINK ABOUT IT THEY WILL REALIZE IT'S A GOOD QUARTER SAID MONA ERAIBA AN ANALYST AT ATI FINANCIAL MOTOROLA A HUGE SUPPLIER OF CELLULAR PHONES AND SWITCHING EQUIPMENT SAID SALES FOR THAT DIVISION ROSE 57 TO 167 BILLION WHILE ORDERS ROSE 62 THE COMPANY'S COMMUNICATION PRODUCTS SECTOR WHICH INCLUDES PAGERS HAD SALES GROWTH OF 20 TO 124 BILLION BUT ORDERS FOR THAT SECTOR GREW JUST 1 THAT IS DISAPPOINTING SAID JOHN GERAGHTY AN ANALYST AT CS FIRST BOSTON ONE CAUSE OF THE DISAPPOINTMENT WAS CHINA A MAJOR MARKET FOR MOTOROLA'S PAGERS AND OTHER WIRELESS COMMUNICATIONS GEAR THE COMPANY SAID ORDERS TO CHINA DECLINED DURING THE PERIOD CAUSING INTERNATIONAL ORDERS FOR THE COMMUNICATIONS SEGMENT TO DECLINE OVERALL A MOTOROLA SPOKESMAN ATTRIBUTED THE DECLINE IN CHINESE ORDERS TO STRONG RESULTS IN THAT SECTOR DURING THE YEAREARLIER PERIOD SEMICONDUCTOR PRODUCTS ANOTHER MAJOR BUSINESS SEGMENT GREW 26 TO 161 BILLION IN SALES BUT ORDERS GREW 15 SUGGESTING THAT SEGMENT ALSO MAY BE SLOWING ANOTHER DISAPPOINTMENT TO SOME ANALYSTS WAS THE COMPANY'S RELATIVELY SMALL GOVERNMENT AND SYSTEMS TECHNOLOGY GROUP WHICH INCLUDES MOTOROLA'S SHARE OF THE AMBITIOUS IRIDIUM SATELLITE COMMUNICATIONS VENTURE ANTHONY LANGHAM AN ANALYST AT NATWEST SECURITIES CORP SAID HE HAD EXPECTED REVENUE FROM THE GOVERNMENT SECTOR TO COME IN AT ABOUT 275 MILLION BASED ON THAT UNIT'S RECENT GROWTH MOTOROLA SAID SALES IN ITS GOVERNMENT AND SYSTEMS TECHNOLOGY GROUP GREW 10 TO 138 MILLION ORDERS MORE THAN TRIPLED MR LANGHAM AND OTHER ANALYSTS SAID THEY ARE HOPING FOR FURTHER CLARIFICATION TODAY FROM MOTOROLA ABOUT THE REASON FOR THE GOVERNMENT SYSTEMS SHORTFALL AND RESULTS IN OTHER SEGMENTS THERE WILL BE A LOT OF PEOPLE ON THE CONFERENCE CALL WITH A LOT OF QUESTIONS HE SAID 9404120092 940412 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ARVIN INDUSTRIES INC A SHELF OFFERING FOR 225 MILLION OF SECURITIES HOLLYWOOD CASINO CORP AN OFFERING OF 225 MILLION UNITS CONSISTING OF FIRSTMORTGAGE NOTES AND WARRANTS TO PURCHASE CLASS A COMMON STOCK VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP SALOMON BROTHERS INC AND BEAR STEARNS & CO IMAX CORP A PROPOSED INITIAL OFFERING OF 3250000 COMMON SHARES VIA GOLDMAN SACHS & CO DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND WASSERSTEIN PERELLA SECURITIES INC KIII COMMUNICATIONS CORP AN OFFERING OF 100 MILLION OF SENIOR NOTES VIA MERRILL LYNCH & CO AND MORGAN STANLEY & CO SUN HEALTHCARE GROUP INC AN OFFERING OF 4250000 COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 637500 ADDITIONAL SHARES VIA NATWEST SECURITIES LTD PAINEWEBBER INC AND SMITH BARNEY SHEARSON INC 9404120091 940412 SERB REACTION AWAITED AS NATO MOUNTS A SECOND DAY OF AIR STRIKES IN BOSNIA BY THOMAS E RICKS AND ROBERT S GREENBERGER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AFTER TWO YEARS OF INTERNAL DEBATE THE CLINTON ADMINISTRATION AND THE NATO ALLIANCE ARE ABOUT TO LEARN THE ANSWER TO THE BASIC QUESTION OF INTERVENTION IN THE BALKANS WAR WILL THE SELECTIVE APPLICATION OF WESTERN AIR POWER INTIMIDATE THE BOSNIAN SERBS OR FURTHER PROVOKE THEM THE QUESTION WAS STARKLY POSED BY THE SECOND DAY OF LIMITED NATO AIR STRIKES AGAINST SERB MILITARY POSITIONS ON THE FRINGES OF THE BESIEGED SOUTHEASTERN BOSNIAN TOWN OF GORAZDE TWO US MARINE F/A18 ATTACK FIGHTERS FLYING UNDER NATO COMMAND BOMBED AND SHOT AT SEVERAL SERB ARMORED VEHICLES AND TRUCKS THAT WERE MOVING INTO THE CITY THAT CAME LESS THAN 24 HOURS AFTER A SIMILAR ATTACK BY TWO US AIR FORCE F16S IN WHAT WAS THE FIRST AIR STRIKE IN THE 45YEAR HISTORY OF THE NORTH ATLANTIC TREATY ORGANIZATION THE INITIAL SERB RESPONSE TO THE AIR STRIKES WAS MIXED BETWEEN THE TWO BOMBINGS SERB ARTILLERY SHELLED GORAZDE HEAVILY WITH AS MANY AS EIGHT SHELLS A MINUTE HITTING THE TOWN ACCORDING TO REAR ADM MICHAEL CRAMER HEAD OF INTELLIGENCE FOR THE JOINT CHIEFS OF STAFF ALSO SERB FORCES ELSEWHERE IN BOSNIA LIMITED THE MOVEMENTS OF UNITED NATIONS PEACEKEEPERS AND RELIEF WORKERS US ATTEMPTS TO REACH SERB POLITICAL LEADERS IN BOSNIA AND SERBIA WERE UNSUCCESSFUL AN ADMINISTRATION OFFICIAL SAID HOW THE SERBS ANSWER THE QUESTION OVER THE NEXT SEVERAL DAYS WILL LIKELY DETERMINE WHETHER PEACE COMES TO THE REGION OR NATO AND THE US BECOME INVOLVED AS PARTICIPANTS IN THE TWOYEAROLD BOSNIAN WAR I THINK THE EVENTS OF THE NEXT DAY OR TWO WILL GIVE US A CLEARER PICTURE OF HOW THEY ARE REALLY GOING TO RESPOND DEFENSE SECRETARY WILLIAM PERRY SAID IN AN INTERVIEW WE WERE VERY CLOSE TO AN AGREEMENT BETWEEN THE SERBS AND THE MUSLIMS FOR CESSATION OF HOSTILITIES JUST A FEW DAYS AGO WHAT WE'RE GOING TO TRY TO DO IS TO GET THEM BACK INTO THOSE TALKS ANOTHER SENIOR PENTAGON OFFICIAL ADDED IT COULD GO EITHER WAY AT THIS POINT EVERYONE IS WAITING ANXIOUSLY TO SEE WHAT THE SERB RESPONSE IS GOING TO BE EVERYONE HOPES THE SERBS WILL QUIET DOWN AND FEARS THEY'LL DO SOMETHING LIKE TAKE HOSTAGES IF THEY DO WE'RE IN THE PREDICAMENT OF ESCALATING THIS INDEED THERE WERE UNCONFIRMED REPORTS YESTERDAY FROM US GOVERNMENT ANALYSTS THAT SOME WORKERS FOR THE UN HIGH COMMISSION ON REFUGEES HAD BEEN TAKEN INTO PROTECTIVE CUSTODY BY SERB FORCES NEAR GORAZDE A PRIVATE FRENCH AID GROUP SAID LATER THAT 11 OF ITS WORKERS HAD BEEN TAKEN PRISONER BY BOSNIAN SERBS WHO ACCUSED THEM OF TRANSPORTING ARMS ACCORDING TO THE ASSOCIATED PRESS SEVERAL FACTORS COMPLICATE HOW THE SERBS WILL ACT IN THE COMING DAYS AND HOW THE WEST WILL INTERPRET THEIR MOVES FIRST THE AIR STRIKES AREN'T BEING USED TO ROLL BACK SERB GAINS BUT MORE MODESTLY TO ENCOURAGE THE SERBS TO RETURN TO PEACE NEGOTIATIONS AND ACCEPT A DEAL UNDER WHICH THEY WOULD RECEIVE 49 OF BOSNIA WITH THE REMAINDER GOING TO THE NEW MUSLIMCROAT CONFEDERATION THERE SEEMS TO BE AN ADVANTAGE FOR THE SERBS TO COME TO THE PEACE AGREEMENT AT THIS TIME TO CONSOLIDATE WHAT THEY HAVE SAID SEN RICHARD LUGAR R IND IF THAT HAPPENS THEN THE AIR STRIKES MAY HAVE PROVIDED A VERY ECONOMICAL WAY TO INSURE OR PIN DOWN THE MOMENTUM TOWARD A CEASEFIRE SECOND THE SHAKY SERB CHAIN OF COMMAND MAKES IT DIFFICULT TO KNOW WHETHER SOMETHING THAT HAPPENS IN SAY GORAZDE IS THE ACTION OF A LOCAL MILITIA OR REFLECTS THE INTENTIONS OF THE SERB LEADERSHIP IT ISN'T CLEAR HOW MUCH INFLUENCE SERBIAN LEADER SLOBODAN MILOSEVIC HAS OVER THE BOSNIAN SERB POLITICAL LEADERS IN PALE BOSNIA AND THERE IS A DEBATE GOING ON WITHIN THE US GOVERNMENT ABOUT THE EXTENT TO WHICH RADOVAN KARADZIC THE BOSNIAN SERB LEADER CONTROLS THE BOSNIAN SERB MILITARY UNABLE TO REACH MR KARADZIC SOME US OFFICIALS SPECULATED THAT HIS TOP GENERAL RATKO MLADIC MAY HAVE BEEN IMPEDING HIS COMMUNICATIONS SOME OF THOSE OFFICIALS ARGUE THAT THE SERBS ARE SPLIT WITH AN EXHAUSTED POLITICAL LEADERSHIP EAGER TO SETTLE AND A MILITARY GENERALLY EAGER TO FIGHT ON IT IS POSSIBLE DEFENSE SECRETARY PERRY SAID THAT THE SERB POLITICAL LEADERSHIP ISN'T THAT TIGHTLY CONNECTED TO OR HAVE THAT MUCH CONTROL OVER THE SERB MILITARY LEADERSHIP OTHERS IN THE ADMINISTRATION ARGUE THAT BOSNIAN SERB MILITARY COMMANDERS ARE ACTING AGGRESSIVELY WITH THE CONCURRENCE OF THEIR POLITICAL LEADERS IT'S BEING ORCHESTRATED FROM THE CENTER IT'S NOT JUST THE LOCAL COMMANDERS GETTING CARRIED AWAY A SENIOR US OFFICIAL SAID THAT'S ALL THE MORE REASON WHY WE FELT WE HAD TO CONFRONT THE SERBS FINALLY AS THOSE VIEWS ARE PUT TO THE TEST IN THE COMING DAYS SO TOO MIGHT THE WEST'S RESOLVE BE PROBED BY THE SERBS US GOVERNMENT ANALYSTS SAID THAT THE SERB VIEW MIGHT BE THAT NATO LACKS THE WILL TO CARRY OUT EXTENSIVE MILITARY ATTACKS WHICH IS WHY THE TWO AIR STRIKES HAVE BEEN LIMITED TO JUST FOUR US AIRCRAFT PLINKING TANKS AND TENTS MARINE LT GEN JOHN SHEEHAN HEAD OF OPERATIONS FOR THE JOINT STAFF SAID IT WAS PURE COINCIDENCE THAT BOTH OF THE NATO ATTACKS HAD BEEN EXECUTED BY US AIRCRAFT THERE WERE SIGNS THAT THE ADMINISTRATION COULD FACE HEAVY CRITICISM AT HOME AND ABROAD IF THE BOSNIAN WAR LEADS TO A CONFRONTATION BETWEEN NATO AND THE SERBS IN THE COMING DAYS MANY US MILITARY OFFICERS HAVE ARGUED THAT THE BALKANS FIGHTING IS A CIVIL WAR THAT THE WEST SHOULD AVOID SEN HANK BROWN R COLO A MEMBER OF THE FOREIGN RELATIONS COMMITEE CALLED THE AIR STRIKES HALFHEARTED BUT SAID THEY NEVERTHELESS HAD INVOLVED THE US IN THE WAR RUSSIAN UNHAPPINESS ALSO COULD UNDERCUT THE TOUGHER NATO STANCE RUSSIAN PRESIDENT BORIS YELTSIN EXPRESSED HIS DISPLEASURE IN STATEMENTS TO REPORTERS IN MOSCOW SHORTLY BEFORE LEAVING FOR SPAIN I INSISTED TO CLINTON AND CONTINUE TO INSIST THAT QUESTIONS LIKE AIR STRIKES ON SERB POSITIONS MUST NOT BE DECIDED WITHOUT PRELIMINARY CONSULTATION BETWEEN THE UNITED STATES AND RUSSIA MR YELTSIN SAID RUSSIAN FOREIGN MINISTER ANDREI KOZYREV WAS BLUNTER IT'S A BIG MISTAKE AND A GREAT RISK TO TAKE SUCH DECISIONS WITHOUT RUSSIA HE TOLD REPORTERS IN MADRID ACCORDING TO WIRE REPORTS AIR STRIKES COULD BRING NOT AN END TO WAR BUT ITS ESCALATION BUT THE RHETORICAL SWEEPSTAKES WAS WON BY RUSSIA'S MOST OUTSPOKEN PARLIAMENTARIAN VLADIMIR ZHIRINOVSKY IF I WERE THE PRESIDENT THE ULTRANATIONALIST PRESIDENTIAL HOPEFUL TOLD REPORTERS WE WOULD BOMB THOSE BASES IN ITALY WHERE THE NATO AIRCRAFT ARE BASED THEY BOMB ONE TOWN WE BOMB ANOTHER TOWN RUSSIA HAS DEMANDED A MAJOR ROLE IN THE SEARCH FOR PEACE IN THE FORMER YUGOSLAVIA THAT'S PARTLY AN ATTEMPT BY MOSCOW TO REASSERT ITS VOICE IN WORLD AFFAIRS AFTER SEVERAL HUMILIATING YEARS AS A JUNIOR PARTNER TO THE WEST BUT RUSSIA ALSO SEES ITS ROLE AS PROTECTING THE SERBS OR AT LEAST HEADING OFF AN ANTISERB WESTERN ALLIANCE RUSSIANS ACROSS THE POLITICAL SPECTRUM ARE OPENLY SYMPATHETIC TO THE SERBS WHOM THEY VIEW AS FELLOW SLAVS AND ORTHODOX CHRISTIANS SECRETARY OF STATE WARREN CHRISTOPHER INSISTED AT A NEWS CONFERENCE THAT THE US HAS BEEN IN CLOSE CONTACT WITH THE RUSSIANS AND PATRICK GLYNN A RESIDENT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE SAID MOSCOW IN THE COMING DAYS COULD PLAY THE ROLE OF GOOD COP TO NATO'S BAD COP THEY CAN SAY WE DON'T WANT TO SEE YOU OUR FRIENDS THE SERBS GET INTO DEEPER WATER' MR GLYNN SAID I THINK THEY CAN DO A WHOLE LOT MORE WITH THE SERBS THAN ANY NUMBER OF NATO AIR STRIKES ADI IGNATIUS IN MOSCOW CONTRIBUTED TO THIS ARTICLE 9404120090 940412 INTERNATIONAL TAIWAN WILDLIFE PRODUCTS TO FACE US IMPORT BAN WASHINGTON PRESIDENT CLINTON RESPONDING TO AN INTERNATIONAL OUTCRY AGAINST ILLEGAL ASIAN TRADE IN RHINOCEROS HORNS AND TIGER BONES SAID HE WOULD BAN US IMPORTS OF WILDLIFE SPECIMENS AND PRODUCTS FROM TAIWAN BUT HE DECLINED TO TAKE A SIMILAR STEP AGAINST CHINA MR CLINTON'S ACTIONS WHICH HAD BEEN EXPECTED FOLLOW THE RECOMMENDATIONS OF THE INTERNATIONAL CONVENTION ON INTERNATIONAL TRADE IN ENDANGERED SPECIES OF WILD FAUNA AND FLORA IN A LETTER TO HOUSE SPEAKER THOMAS FOLEY D WASH MR CLINTON SAID TAIWAN HAS FAILED TO PASS LEGISLATION THAT WOULD MAKE IT EASIER TO IDENTIFY STOCKS OF ILLEGAL RHINOCEROS AND TIGER PRODUCTS HE ALSO SAID TAIWAN'S ENFORCEMENT OF ITS LAWS PROHIBITING TRADE IN THE ENDANGERED SPECIES IS INADEQUATE CHINA ON THE OTHER HAND HAS MADE IMPROVEMENTS IN IDENTIFYING ITS STOCKS OF THE ILLEGAL PRODUCTS MR CLINTON SAID IF THE US HAD TAKEN ACTION AGAINST CHINA IT COULD HAVE FURTHER COMPLICATED THE CLINTON ADMINISTRATION'S PENDING DECISION ON WHETHER TO RENEW CHINA'S MOST FAVORED NATION STATUS WHICH ALLOWS CHINA TO EXPORT TO THE US AT THE LOWEST POSSIBLE TARIFF RATES AN INTERIOR DEPARTMENT AIDE SAID THE ADMINISTRATION HAS BEEN PRETTY SUCCESSFUL IN KEEPING THIS SEPARATE FROM THE LARGER TRADE DECISION TO BE MADE IN EARLY JUNE BUT NOTHING IS EVER TOTALLY SEPARATE THE US WILL DECIDE WHICH TAIWANESE GOODS WILL BE AFFECTED AFTER A 30DAY COMMENT PERIOD 9404120089 940412 HEALTH TAX BREAKS THREATENED SOME HOSPITALS TRY TO PROVE HOW CHARITABLE THEY ARE BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL ARIZONA'S TUCSON MEDICAL CENTER IS GIVING BICYCLE HELMETS TO MEMBERS OF ITS HEALTHMAINTENANCE ORGANIZATION AND FOR THE FIRST TIME REPORTING THE GIFT AND OTHER COMMUNITYSERVICE PROGRAMS IN DETAIL TO THE INTERNAL REVENUE SERVICE BESIDES PROTECTING PATIENTS THE HELMETS ARE DESIGNED TO PROTECT A PLACE FOR TUCSON MEDICAL IN THE POSTHEALTHCAREREFORM FUTURE FACED WITH GROWING PRESSURE TO CUT COSTS AS WELL AS MOUNTING ATTACKS ON THEIR TAXEXEMPT STATUS MANY NONPROFIT HOSPITALS LIKE TUCSON ARE STARTING OR EXPANDING COMMUNITYSERVICE PROGRAMS A 1990 GENERAL ACCOUNTING OFFICE STUDY OF NOTFORPROFIT HOSPITALS IN FIVE STATES FOUND THAT BETWEEN 43 AND 71 OF THE NONPROFIT HOSPITALS SURVEYED PROVIDED LESS CHARITY CARE THAN THE ESTIMATED VALUE OF THEIR TAX EXEMPTIONS NONPROFIT HOSPITALS ACCOUNTING FOR ABOUT 60 OF THE NATION'S 5292 ACUTECARE FACILITIES ARE UNDER FIRE FROM POLITICIANS INVESTOROWNED CHAINS AND CONSUMER GROUPS THESE CRITICS CONTEND THAT SUCH HOSPITALS DON'T PROVIDE ENOUGH CHARITY CARE AND COMMUNITY SERVICE TO JUSTIFY AS MUCH AS 9 BILLION A YEAR IN FEDERAL STATE AND LOCAL TAX BREAKS MEMBERS OF CONGRESS HAVE PROPOSED LEGISLATION SETTING CHARITYCARE MINIMUMS AND SANCTIONING FACILITIES FOR CERTAIN ACTIVITIES SUCH AS ENGAGING IN RESEARCHANDDEVELOPMENT VENTURES WITH FORPROFIT COMPANIES SEVERAL PENNSYLVANIA CITIES HAVE CHALLENGED LOCAL EXEMPTIONS IN COURT TEXAS HAS ENACTED COMMUNITYSERVICE REQUIREMENTS AND THE MASSACHUSETTS ATTORNEY GENERAL HAS PROPOSED MAKING NONPROFITS PROVIDE CHARITY CARE ROUGHLY EQUAL IN VALUE TO THEIR TAX EXEMPTIONS THE CLINTON ADMINISTRATION PROPOSES ONLY TO MAKE NONPROFITS DEVELOP PLANS TO ADDRESS LOCAL HEALTHCARE NEEDS BUT SOME CRITICS FAVOR ABOLITION OF THE EXEMPTIONS IF THE CLINTON ADMINISTRATION EXTENDS BASIC HEALTHCARE COVERAGE TO ALL CITIZENS THERE WOULD BE NO REASON FOR TAXEXEMPT STATUS ARGUES ROBERT MCINTYRE DIRECTOR OF THE CITIZENS FOR TAX JUSTICE LOBBYING GROUP IN RESPONSE MANY NOTFORPROFIT HOSPITALS HAVE INITIATED COMMUNITYSERVICE PROGRAMS OR ENHANCED THEIR EFFORTS BALTIMORE'S ST AGNES HOSPITAL NOW OFFERS FREE PRENATAL CARE TO PREGNANT TEENAGERS SOUTH BEND MEMORIAL HOSPITAL IN INDIANA HAS LAUNCHED AN URBANCARE PROGRAM TO COORDINATE THE DELIVERY OF SERVICES TO LOWINCOME AREAS AND RIVERSIDE METHODIST HOSPITAL IN COLUMBUS OHIO HAS OPENED A HEALTH CLINIC AT A LOCAL FOOD PANTRY OTHER HOSPITALS HAVE OPENED COMMUNITY BENEFITS OFFICES AND REVVED UP THEIR PUBLICITY DEPARTMENTS LAST YEAR THE BOARD OF FLORIDA'S ORLANDO REGIONAL MEDICAL CENTER APPOINTED A COMMUNITY BENEFITS COMMITTEE AND OPENED AN OFFICE TO COORDINATE A GROWING LIST OF ACTIVITIES THAT INCLUDE A DOORTODOOR IMMUNIZATION CAMPAIGN TRANSPORTATION SERVICES FOR THE INDIGENT AND A COMPREHENSIVE SURVEY OF LOCAL HEALTH NEEDS WE'RE JUST SAYING THAT COMMUNITY SERVICE IS A VERY IMPORTANT ASPECT OF WHAT WE DO SAYS ROY WRIGHT VICE PRESIDENT BUSINESS DEVELOPMENT NOT THAT IT HASN'T ALWAYS BEEN THAT WAY BUT IT HASN'T BEEN IN A VERY VISIBLE FASHION THAT'S MAINLY BECAUSE FOR DECADES NO ONE ASKED NONPROFIT HOSPITALS TO JUSTIFY THEIR TAX EXEMPTIONS WHICH ARE ROOTED IN THE 19THCENTURY TRADITION OF HOSPITALS AS HEALTHCARE PROVIDERS FOR THE POOR WITH THE SPREAD OF HEALTH INSURANCE AFTER WORLD WAR II THE IRS BEGAN REQUIRING THAT NONPROFIT HOSPITALS MAINTAIN EMERGENCY ROOMS AND TREAT INDIGENT PATIENTS FOR FREE OR BELOW COST BUT THE RULES WERE RELAXED IN 1969 WHEN MANY BELIEVED THAT MEDICARE AND MEDICAID WOULD PROVIDE NEARUNIVERSAL COVERAGE THAT DIDN'T HAPPEN AND WHILE MANY NONPROFITS BRANCHED OUT INTO FREE COMMUNITY SERVICES SUCH AS BLOODPRESSURE TESTING AND NUTRITION CLINICS FEW ATTEMPTED TO QUANTIFY OR SPECIFICALLY BUDGET FOR THEM WITH THE RISE OF COMPETING TAXPAYING CHAINS AND MOUNTING PRESSURE TO CUT COSTS MANY NONPROFITS CUT BACK ON THE SERVICES THAT JUSTIFIED THEIR TAXEXEMPT STATUS THEY BEGAN CONCENTRATING ON GAINING MARKET SHARE ATTRACTING EXPENSIVE EXECUTIVE TALENT AND LAUNCHING LUCRATIVE ANCILLARY BUSINESSES NOW MANY NONPROFITS ARE ATTEMPTING TO SHOW THAT THEY'VE TURN THE TIDE THE ST LOUISBASED CATHOLIC HEALTH ASSOCIATION CREATED A SOCALLED SOCIAL ACCOUNTABILITY BUDGET FOR ITS 650 MEMBER HOSPITALS IT WAS TO SHOW OUR SPONSORS WHAT IT WAS THAT OUR FACILITIES WERE DOING BUT IT WAS ALSO A SET OF TOOLS FOR THE FACILITIES TO EXAMINE THEMSELVES SAYS JULIE TROCCHIO THE ASSOCIATION'S GOVERNMENT RELATIONS LIAISON THE PLANNING BOOKLET WHICH HAS BECOME A MODEL FOR OTHER NONPROFIT HOSPITALS OFFERS TIPS SUCH AS FORMING FOCUS GROUPS TO MEASURE LOCAL OPINION OF THE HOSPITAL'S ACTIVITIES AND RECLASSIFYING BAD DEBTS AS CHARITY CARE BY AUTHORIZING BILL COLLECTORS TO OFFER FINANCIAL ASSISTANCE TO THE INDIGENT THE ONE THING THAT WE'VE LEARNED IS THAT IT IS VERY DIFFICULT TO QUANTIFY SOME OF THESE SERVICES SAYS MS TROCCHIO FOR EXAMPLE SHE SAYS IT IS ALMOST IMPOSSIBLE TO ESTIMATE HOW MANY PREMATURE AND UNDERWEIGHT BIRTHS ARE PREVENTED BY FREE PRENATAL CARE AND NUTRITIONAL COUNSELING FOR TEENAGERS BUT SOME FACILITIES ARE TRYING FOR THE PAST TWO YEARS SETON HOSPITAL IN AUSTIN TEXAS HAS SENT LOCAL OFFICIALS COMMUNITY LEADERS AND REPORTERS AN ANNUAL CARE FOR THE POOR AND COMMUNITY BENEFIT REPORT IN ADDITION TO DETAILS ON MEDICAL CHARITY COSTS NUMBERS OF INDIGENT PATIENTS AND SCREENING AND HEALTH CLASSES THE REPORT INCLUDES STORIES ON PATIENTS HELPED BY CHARITY CARE SUCH AS THE IMPOVERISHED CARPENTER WHOSE FAILING EYESIGHT WAS REPAIRED WITH FREE CATARACT SURGERY SETON THIS YEAR PLANS A SERIES OF NEWSPAPER ADS ABOUT PROGRAMS SUCH AS ITS EAST AUSTIN CLINIC WHICH OFFERS THE WORKING POOR SOCIAL SERVICES FAMILY COUNSELING AND LEGAL REPRESENTATION EVEN AFTER HEALTHCARE REFORM SAYS CHARLES BARNETT SETON'S PRESIDENT AND CHIEF EXECUTIVE WE WILL CONTINUE TO FIND THAT THERE ARE UNMET NEEDS IN THE OVERALL HEALTHCARE DELIVERY SYSTEM 9404120088 940412 MORGAN STANLEY POSTPONES OFFERING OF EUROPE FUND NEW YORK MORGAN STANLEY & CO POSTPONED AN INITIAL OFFERING OF THE MORGAN STANLEY EUROPEAN EMERGING MARKETS FUND MORGAN STANLEY ASSET MANAGEMENT INC IS THE INVESTMENT ADVISER TO THE CLOSEDEND FUND WHICH HAD PLANNED TO OFFER FOUR MILLION SHARES TO TRADE ON THE NEW YORK STOCK EXCHANGE AT 15 APIECE COUNTRY FUNDS HAVE TWO PRICES THE NET ASSET VALUE OF WHAT THE FUNDS' HOLD AND THE PRICE AT WHICH IT TRADES ABOVE OR BELOW THE NAV CLOSEDEND COUNTRY FUNDS HAVE BEEN KNOCKED DOWN WITH MANY TRADING AT DISCOUNTS TO THEIR NAV EUROPEAN FUNDS CURRENTLY HAVE AN AVERAGE DISCOUNT OF 7 AND LATIN AMERICAN FUNDS HAVE AN AVERAGE DISCOUNT OF 2 SAID RONALD SANTANGELO A MERRILL LYNCH CLOSEDEND FUND ANALYST ASIAN FUNDS HAVE NARROWED THEIR PREMIUMS TO 6 FROM 13 IN SEVERAL WEEKS WHICH MEANS THEY MAY BE HEADED TOWARD FALLING TO DISCOUNTS HE SAID THIS GROUP AS A WHOLE HAS SEEN MARKET LOSSES WITH THE STOCKS IN THEIR PORTFOLIOS THE EXPANSION OF DISCOUNTS AND THE NARROWING OF PREMIUMS AT SOME FUNDS MR SANTANGELO SAID THIS HAS COOLED OFF THE EXUBERANCE UNDERWRITERS AND INVESTORS HAD FOR THESE FUNDS AROUND YEAR END 9404120087 940412 DHB CAPITAL'S PURCHASE GREENVALE NY DHB CAPITAL GROUP INC ACQUIRED A MINORITY INTEREST IN ZYDACRON CORP OF MANCHESTER NH TERMS WEREN'T DISCLOSED PRIVATELY HELD ZYDACRON DESIGNS MARKETS AND MANUFACTURES PRODUCTS THAT ALLOW PERSONAL COMPUTERS TO PARTICIPATE IN VIDEOCONFERENCING AND MULTIMEDIA ACTIVITIES 9404120086 940412 INTERNATIONAL BRIEF ABB ASEA BROWN BOVERI AG VENTURE WITH VIETNAMESE WILL PRODUCE TRANSFORMERS ABB ASEA BROWN BOVERI AG THE SWISSSWEDISH HEAVY ENGINEERING GROUP SAID IT SIGNED AN AGREEMENT WITH THE STATEOWNED VIETNAMESE TRANSFORMER MANUFACTURER CTBT TO FORM A JOINT VENTURE IN VIETNAM TO PRODUCE THE LATEST DESIGNS OF DISTRIBUTION TRANSFORMERS THE NEW JOINT VENTURE COMPANY CALLED ABB TRANSFORMERS LTD IS 65OWNED BY ABB AND 35OWNED BY CTBT WHICH IN TURN IS OWNED BY THE VIETNAM MINISTRY OF HEAVY INDUSTRY A SPOKESMAN FOR ABB DECLINED TO DISCLOSE THE AMOUNT OF THE COMPANY'S INVESTMENT IN THE JOINT VENTURE ABB ALSO SAID THAT ITS ABB TRANSFORMERS UNIT PLANS TO EXPAND ITS ACTIVITIES BY PRODUCING OTHER PRODUCTS FOR POWER TRANSMISSION AND DISTRIBUTION APPLICATIONS INCLUDING POWER TRANSFORMERS 9404120085 940412 LAW LEGAL BEAT MINNESOTA MINING FOUR OTHERS JOIN SILICONEIMPLANT SETTLEMENT BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL MINNESOTA MINING & MANUFACTURING CO AFTER INITIALLY BALKING AGREED TO PAY 325 MILLION TO JOIN A GLOBAL SETTLEMENT OF BREASTIMPLANT LAWSUITS FOUR OTHER CORPORATE DEFENDANTS ALSO AGREED TO CONTRIBUTE A COMBINED 171 MILLION AND JOIN THE DEAL THUS RAISING THE TOTAL SETTLEMENT FUND TO WELL OVER 4 BILLION UNION CARBIDE CORP ONCE A SUPPLIER OF SILICONE TO THE BREASTIMPLANT INDUSTRY AGREED TO PAY 138 MILLION ALSO DURING THE FIRST TWO YEARS OF THE SETTLEMENT PROGRAM INAMED CORP CURRENTLY THE PARENT COMPANY OF MCGHAN JOINED THE SETTLEMENT DEAL BY AGREEING TO PAY 25 MILLION STRETCHED OUT OVER 25 YEARS BEGINNING IN THE THIRD YEAR OF THE SETTLEMENT DEAL WILSHIRE FOAM PRODUCTS INC AGREED TO PAY 8 MILLION UP FRONT NEGOTIATORS SAID AND APPLIED SILICONE CORP AGREED TO PAY 250000 WHILE THE TOTAL AMOUNT IN THE SETTLEMENT FUND IS IMPOSSIBLE TO CALCULATE BECAUSE SOME CORPORATE PAYMENTS WILL BE IMMEDIATE AND OTHERS STRETCHED OUT THE ENTRY OF FIVE NEW COMPANIES BRINGS THE TOTAL FUNDS PROMISED ROUGHLY IN LINE WITH THE 475 BILLION FIGURE FIRST ANNOUNCED IN SEPTEMBER THE SETTLEMENT IS CONTINGENT ON FINAL APPROVAL BY US DISTRICT JUDGE SAM C POINTER JR IN BIRMINGHAM ALA WHO HAS BEEN ASSIGNED TO SUPERVISE ALL US BREASTIMPLANT LITIGATION THE SETTLEMENT FUND WOULD EXTEND FOR 30 YEARS AND WOULD COVER ALL US AND FOREIGN WOMEN WITH IMPLANTS WHO CHOOSE TO PARTICIPATE GENERAL ELECTRIC CO A SILICONE SUPPLIER AS WELL AS A HANDFUL OF SMALLER MANUFACTURERS STILL HAVEN'T SIGNED ONTO THE SETTLEMENT PLAN WHICH IF APPROVED WOULD BE THE LARGESTEVER PRODUCTLIABILITY DEAL INSURANCE COMPANIES WILL PICK UP VARIOUS PORTIONS OF THE BILLS FACED BY MANUFACTURERS AND SUPPLIERS THE FUND WILL COMPENSATE WOMEN WITH SILICONE BREAST IMPLANTS IF THEY HAVE SUFFERED INJURIES AND ILLNESSES THAT FALL WITHIN CERTAIN CATEGORIES THESE INCLUDE A WIDE RANGE OF DISEASES OF THE HUMAN IMMUNE SYSTEM MANY RESEARCHERS HAVE CONCLUDED THAT SILICONE CAUSES IMMUNESYSTEM ILLNESSES THOUGH OTHER DOCTORS AND THE COMPANIES THEMSELVES MAINTAIN THAT THIS LINK HASN'T BEEN ESTABLISHED THE FOOD AND DRUG ADMINISTRATION HAS SHARPLY RESTRICTED THE DEVICES' SALE IN THE US AND MOST OF THE COMPANIES INVOLVED NO LONGER MAKE THE IMPLANTS NEGOTIATORS FOR DEFENDANTS AND PLAINTIFFS SAY 3M COULD ONCE HAVE JOINED THE SETTLEMENT LAST FALL FOR CONSIDERABLY LESS THAN WHAT IT NOW WILL COST THE CONSUMERPRODUCTS COMPANY BUT MARCIA ARKO A 3M SPOKESWOMAN SAID NO SUCH HARD OFFER EVER WAS MADE TO THE COMPANY HOWEVER NEGOTIATORS SAY THAT OTHER CORPORATE DEFENDANTS SUCH AS MANUFACTURER DOW CORNING CORP ORIGINALLY OFFERED TO LET 3M SIGN UP FOR A DOLLAR FIGURE APPROXIMATING THE CURRENT 325 MILLION BUT STRETCHED OUT OVER 30 YEARS DOW CORNING IS A JOINT VENTURE OF DOW CHEMICAL CO AND CORNING INC THE NEGOTIATORS SAY PLAINTIFFS THEN PROBABLY WOULD HAVE INSISTED ON MORE THAN THAT AMOUNT BUT NOT NEARLY AS MUCH AS 3M NOW WILL PAY IN THE INTERIM PLAINTIFFS' NEGOTIATORS BEGAN INSISTING ON MORE MONEY IN PART BECAUSE 3M LOST A HOUSTON BREASTIMPLANT JURY AWARD THAT EXCEEDS 30 MILLION IN DAMAGES AND ATTORNEYS' FEES 3M HAS APPEALED THAT STATECOURT DECISION I THINK THEY DID HURT THEMSELVES BY NOT JOINING IN SOONER SAID PLAINTIFFS' NEGOTIATOR MICHAEL T GALLAGHER OF HOUSTON MR GALLAGHER SAID THAT IN RECENT WEEKS HE AND 3M HAVE BEEN DISCUSSING AN UPFRONT RATHER THAN STRETCHEDOUT CONTRIBUTION DURING THE TALKS HE SAID HE DEMANDED 500 MILLION IN IMMEDIATE MONEY 3M OFFERED TO PAY 130 MILLION AND THE TWO SIDES MET AT THE 325 MILLION FIGURE TWO FEDERAL LAWS ALLOWING THE DEATH PENALTY FOR MAIL BOMBERS ARE UNCONSTITUTIONAL A FEDERAL APPEALS COURT SAID THE SAN FRANCISCO COURT SAID THE DECADESOLD LAWS ARE TOO BROAD BECAUSE THEY AUTHORIZE THE DEATH PENALTY EVEN FOR PEOPLE WHO ONLY ACCIDENTALLY KILL WITH A MAIL BOMB FOR INSTANCE PEOPLE WHO SHIP BOMB MATERIALS THAT EXPLODE PREMATURELY THE COURT ALSO SAID THE LAWS ARE SO LOOSELY WRITTEN THAT AN ACCIDENTAL KILLER MIGHT RECEIVE THE DEATH PENALTY WHILE A DELIBERATE MURDERER MIGHT NOT THE RULING CAME IN THE PROSECUTION OF RAYMOND D CHEELY JR A PRISONER WHO ALLEGEDLY TRIED TO BOMB A KEY WITNESS WHO HELPED PUT HIM BEHIND BARS THE WITNESS WAS OUT OF TOWN WHEN THE BOMB ARRIVED AND HIS PARENTS OPENED THE MAIL INSTEAD THE WITNESS'S FATHER DIED AND HIS MOTHER WAS SERIOUSLY INJURED THE GOVERNMENT ARGUED THAT THE MAILBOMB LAWS ARE NARROWLY TAILORED BECAUSE THEY ALLOW THE DEATH PENALTY ONLY FOR THE FEW PEOPLE WHO SEND SUCH BOMBS BUT A THREEJUDGE PANEL OF THE APPEALS COURT SAID THE NARROWING MUST BE SUCH THAT IT FORECLOSES THE PROSPECT OF THE CRUEL AND UNUSUAL PUNISHMENT FROM WANTON OR FREAKISH' IMPOSITION OF THE DEATH PENALTY IN A 25PAGE DISSENT JUDGE ARTHUR L ALARCON SAID THE LAWS ALREADY ARE SPECIFIC ENOUGH GOVERNMENT PROSECUTORS HADN'T READ THE RULING AND HAD NO IMMEDIATE COMMENT RICHARD W POGUE THE FORMER MANAGING PARTNER OF JONES DAY REAVIS & POGUE IN CLEVELAND IS MAKING AN UNUSUAL SWITCH TO PUBLIC RELATIONS STARTING IN JULY MR POGUE WILL BE A SENIOR ADVISER TO CLEVELAND'S DIX & EATON INC A MAJOR REGIONAL PUBLICRELATIONS FIRM AND ONE OF THE 25 BIGGEST FIRMS IN THE COUNTRY AS CHAIRMAN OF JONES DAY MR POGUE HEADED THE NATION'S SECONDBIGGEST LAW FIRM BEHIND BAKER & MCKENZIE AND WAS IN THE FOREFRONT OF THE 1980S MOVEMENT TO PUSH US LAW FIRMS INTO GLOBAL MARKETS HIS LATEST MOVE HOWEVER SURPRISED LEGAL HEADHUNTERS IT'S THE FIRST I'VE HEARD OF A LAWYER GOING INTO PUBLIC RELATIONS SAID BOSTON LEGAL CONSULTANT BRUCE HEINTZ MR POGUE WON'T BE WRITING PRESS RELEASES IN AN INTERVIEW HE SAID HE WILL BE SETTING UP A BASE FROM WHICH HE CAN CONTINUE TO CONSULT ON VARIOUS CIVIC AND CORPORATE PROJECTS IN CLEVELAND AND BRING IN BUSINESS FOR DIX & EATON A LONGTIME CLIENT OF JONES DAY MY MAIN INTEREST IS IN CONTINUING CORPORATE DIRECTORSHIPS AND CIVIC ACTIVITIES HE SAID MR POGUE SITS ON THE BOARDS OF CONTINENTAL AIRLINES AND TRW INC AMONG OTHER COMPANIES AND IS ACTIVE IN CLEVELAND'S CULTURAL AND CIVIC LIFE HE WILL BE WORKING 1000 HOURS A YEAR AT DIX & EATON IN BUSINESSRELATED PUBLIC RELATIONS AS A STRATEGIST AND CONSULTANT SAID HENRY F EATON THE FIRM'S CHAIRMAN HE WON'T BE INVOLVED IN MANAGING THE COMPANY OR PRACTICING LAW MR EATON ADDED JUNDA WOO AND MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9404120084 940412 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED APRIL 8 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 LINDEN LEASED HOUSING CORP WILL REDEEM ON JUNE 1 1994 325000 PRINCIPAL AMOUNT OF ITS FIRST MORTGAGE LEASE RENTAL BONDS SERIES A CHASE MANHATTAN BANK BROOKLYN NEW YORK IS PAYING AGENT ORANGE COUNTY CIVIC CENTER AUTHORITY WILL REDEEM ON MAY 1 1994 ITS 1972 REFUNDING REVENUE BONDS DUE NOV 1 199495 UNION BANK LOS ANGELES IS TRUSTEE AND ESCROW AGENT 9404120083 940412 INTERNATIONAL BRIEF GENERALE DES EAUX SA GROUP NET PROFIT RISES 10 4FOR1 STOCK SPLIT IS PLANNED FRENCH MUNICIPAL SERVICES CONGLOMERATE CIE GENERALE DES EAUX SA GAVE A PRELIMINARY ESTIMATE OF 1993 GROUP NET PROFIT OF 32 BILLION FRANCS 5457 MILLION UP 10 FROM 291 BILLION FRANCS IN 1992 GENERALE DES EAUX ALSO SAID IT PROPOSED BOOSTING ITS ANNUAL DIVIDEND PAYOUT TO 44 FRANCS 8 FROM 43 FRANCS THE PARISBASED COMPANY ALSO PLANS A 4FOR1 SHARE SPLIT TO IMPROVE LIQUIDITY IN SHARE TRADING MEANWHILE THE GROUP ALSO SAID ITS LATEST ESTIMATES SHOW REVENUE ROSE 28 LAST YEAR TO AROUND 147 BILLION FRANCS GROUP CASH FLOW IS EXPECTED TO BE IN THE NEIGHBORHOOD OF 11 BILLION FRANCS A SLIGHT INCREASE FROM 1992 GENERALE DES EAUX SAID 9404120082 940412 MARY KAY FOUNDER SELLS PINK HOME FOR 22 MILLION DALLAS MARY KAY ASH THE FOUNDER OF THE COSMETICS CONCERN MARY KAY CORP SOLD HER 19000SQUAREFOOT PINK MANSION TO A DALLAS DOCTOR ABOUT A MONTH BEFORE IT WAS SCHEDULED TO BE AUCTIONED OFF THE BUYER KAREN GILLUM PAID 22 MILLION ACCORDING TO PEOPLE FAMILIAR WITH THE SALE THAT IS ABOUT 15 LESS THAN MS ASH'S LAST ASKING PRICE FOR THE THREESTORY HOME WHICH HAD BEEN ON THE MARKET FOR TWO YEARS THE HOUSE IN THE CITY'S PRESTON HOLLOW NEIGHBORHOOD IS PATTERNED AFTER THE VERSAILLES PALACE AND INCLUDES THREE FRONTYARD FOUNTAINS PINK CHANDELIERS FROM VENICE AND MANY OTHER PINK FURNISHINGS THE HOME'S FURNISHINGS WILL STILL BE AUCTIONED OFF APRIL 29 SAID WILLIAM BONE AN EXECUTIVE AT NATIONAL AUCTION GROUP INC IN HOUSTON THE FIRM SAID DR GILLUM A FAMILY PHYSICIAN PLANS TO BID ON SOME PIECES 9404120081 940412 BUSINESS BRIEF BJ SERVICES CO SCHLUMBERGER UNIT IS NAMED IN PATENTINFRINGEMENT SUIT BJ SERVICES CO SAID IT FILED A PATENTINFRINGEMENT LAWSUIT AGAINST A UNIT OF SCHLUMBERGER LTD A NEW YORK OILFIELD SERVICES AND MEASUREMENTSSYSTEMS CONCERN BJ SERVICES A HOUSTON PROVIDER OF PRESSUREPUMPING SERVICES TO THE PETROLEUM INDUSTRY SAID THE SUIT ALLEGES INFRINGEMENT BY DOWELL SCHLUMBERGER INC ON THREE PATENTS RELATED TO HIGHTEMPERATURE BORATEFLUID SYSTEMS USED IN TREATING OIL AND NATURALGAS WELLS THE SUIT WAS FILED IN US DISTRICT COURT IN GALVESTON TEXAS BJ SERVICES SAID THE SUIT ASKS FOR UNSPECIFIED DAMAGES AND INJUNCTIVE RELIEF A SPOKESWOMAN FOR SCHLUMBERGER SAID THE COMPANY DOESN'T COMMENT ON PENDING CASES 9404120080 940412 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 1/2 HIGH 3 1/4 LOW 3 1/4 NEAR CLOSING BID 3 3/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 1/4 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 362 30 TO 44 DAYS 365 45 TO 59 DAYS 373 60 TO 89 DAYS 385 90 TO 119 DAYS 398 120 TO 149 DAYS 405 150 TO 179 DAYS 415 180 TO 239 DAYS 430 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 372 30 DAYS 382 60 DAYS 395 90 DAYS CERTIFICATES OF DEPOSIT 311 ONE MONTH 325 TWO MONTHS 338 THREE MONTHS 376 SIX MONTHS 424 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 365 ONE MONTH 390 THREE MONTHS 425 SIX MONTHS BANKERS ACCEPTANCES 361 30 DAYS 371 60 DAYS 380 90 DAYS 393 120 DAYS 402 150 DAYS 413 180 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 7/8 3 3/4 TWO MONTHS 4 3 7/8 THREE MONTHS 4 1/8 4 FOUR MONTHS 4 1/4 4 1/8 FIVE MONTHS 4 3/8 4 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/4 ONE MONTH 4 THREE MONTHS 4 3/8 SIX MONTHS 5 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 569 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 829 60 DAYS 835 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 824 60 DAYS 833 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 610 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 290 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404120079 940412 BUSINESS BRIEF QUEBECOR INC MONTREAL PRINTER TO ACQUIRE ARCATA IN 200 MILLION PACT QUEBECOR PRINTING INC SAID IT WILL ACQUIRE THE SHARES OUTSTANDING OF ARCATA CORP FOR 200 MILLION ARCATA CORP A CLOSELY HELD PRINTING COMPANY BASED IN SAN FRANCISCO HAD REVENUE OF 317 MILLION LAST YEAR IT EMPLOYS ABOUT 3600 PEOPLE AT SIX US SITES CHARLES G CAVELL PRESIDENT AND CHIEF OPERATING OFFICER OF QUEBECOR PRINTING A UNIT OF QUEBECOR INC SAID THE ACQUISITION WILL HELP THE MONTREAL COMPANY'S PERSHARE EARNINGS THIS YEAR BUT DECLINED TO GIVE SPECIFICS THE TRANSACTION IS EXPECTED TO CLOSE BY THE END OF JUNE SUBJECT TO A DUEDILIGENCE REVIEW IN TRADING ON THE MONTREAL EXCHANGE QUEBECOR PRINTING CLOSED AT 26375 CANADIAN DOLLARS US1907 UP 25 CANADIAN CENTS 9404120078 940412 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 COLE NATIONAL CORP INITIAL OFFERING OF FIVE MILLION COMMON SHARES PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NORTHERN BORDER PARTNERS LP 35 MILLION COMMON UNITS PRICED AT 2525 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AND AG EDWARDS & SONS INC ORYX TECHNOLOGY CORP INITIAL OFFERING 11 MILLION UNITS PRICED AT 7 EACH THROUGH MANAGING UNDERWRITER JW CHARLES/CSG EACH UNIT CONSISTS OF TWO COMMON SHARES AND ONE WARRANT TO PURCHASE A COMMON SHARE SPORTS SCIENCES INC INITIAL PUBLIC OFFERING OF 880000 UNITS PRICED AT 5 EACH THROUGH LEAD UNDERWRITER AT BROAD & CO ACCORDING TO THE COMPANY EACH UNIT CONSISTS OF ONE COMMON SHARE AND ONE WARRANT TO PURCHASE A COMMON SHARE HARRIS COUNTY TEXAS 2342 MILLION OF SERIES 1994A TOLLROAD UNLIMITEDTAX SUBORDINATELIEN REVENUE BONDS PRICED BY A DILLON READ & CO GROUP YIELDS RANGE FROM 57 FOR ZEROCOUPON BONDS DUE IN 2001 TO 64 FOR CURRENTINTEREST BONDS DUE IN 2020 ZEROCOUPON BONDS DUE IN 200107 AND BONDS DUE IN 2012 AND 2013 ARE INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP SECURITIES DUE IN 2024 ALSO ARE INSURED BY MBIA BUT AREN'T REOFFERED FORMALLY MOODY'S INVESTORS SERVICE INC HAS RATED THE UNINSURED BONDS DOUBLEA AND STANDARD & POOR'S CORP HAS ASSIGNED A DOUBLEAPLUS RATING INSURED BONDS ARE RATED TRIPLEA BY MOODY'S AND S&P KING COUNTY WASHINGTON 170 MILLION OF SERIES A 1994 IMPROVEMENT BONDS APPARENTLY WON BY A CS FIRST BOSTON INC GROUP YIELDS RANGE FROM 3 IN 1995 TO 64 IN 2034 MOODY'S HAS RATED THE BONDS DOUBLEA1 AND S&P HAS ASSIGNED A DOUBLEAPLUS RATING BADENWUERTTEMBERG LFINANCE NV GERMAN PARENT 100 BILLION ITALIAN LIRE OF 78 EUROBONDS DUE MARCH 8 2004 AT ISSUE PRICE 9675 VIA CREDITO ITALIANO BONDS WILL TRADE INTERCHANGEABLY WITH 300 BILLION LIRE OF IDENTICAL BONDS OUTSTANDING VARIABLE REOFFER PRICE GUARANTOR LANDESKREDITBANK BADENWUERTTEMBERG FEES UNDISCLOSED RHEINISCHE HYPOTHEKEN BANK AG GERMANY 100 MILLION MARKS OF BONDS DUE MAY 5 1999 AT ISSUE PRICE 1006 VIA DEUTSCHE GENOSSENSCHAFTSBANK COUPON 64 IN FIRST YEAR THEREAFTER COUPON 163 MINUS TWICE THREEYEAR MARK SWAP RATE MINIMUM 275 FEES TWO LESS 0075 FOR LEAD MANAGER SUDWEST LB CAPITAL MARKETS PLC GERMAN PARENT 100 BILLION ITALIAN LIRE OF 8 EUROBONDS DUE FEB 24 2004 AT ISSUE PRICE 96875 VIA BANCA DI ROMA AND UBS LTD BONDS WILL TRADE INTERCHANGEABLY WITH 150 BILLION LIRE OF IDENTICAL BONDS OUTSTANDING VARIABLE REOFFER PRICE GUARANTOR SUDWESTDEUTSCHE LANDESBANK GIROZENTRALE FEES TWO SWEDISH EXPORT CREDIT CORP SWEDISH AGENCY 150 BILLION ITALIAN LIRE OF 9125 EUROBONDS DUE MAY 13 2004 AT ISSUE PRICE 10065 VIA BANCA COMMERCIALE ITALIANA AND BANCA NAZIONALE DEL LAVORO BONDS YIELD 934 AFTER FEES OF TWO CALLABLE AT PAR MAY 13 1997 AND ANNUALLY THEREAFTER TOYOTA MOTOR CREDIT CORP JAPANESE PARENT 150 MILLION SWISS FRANCS OF 425 PRIVATELY PLACED NOTES DUE NOV 4 1997 PRICED AT 101125 VIA UNION BANK OF SWITZERLAND FEES 125 WESTERN AUSTRALIA TREASURY CORP AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 7625 EUROBONDS DUE MAY 18 1998 AT ISSUE PRICE 10075 VIA COMMONWEALTH BANK OF AUSTRALIA BONDS YIELD 789 AT 99125 COMANAGERS' BREAKEVEN PRICE GUARANTOR TREASURER OF WESTERN AUSTRALIA FEES 175 LESS 0125 FOR LEAD MANAGER WOOLWICH BUILDING SOCIETY UK 150 MILLION OF FLOATINGRATE EURONOTES DUE APRIL 1998 AT ISSUE PRICE PAR VIA SAMUEL MONTAGU & CO REOFFERED AT 9979 PAYABLE QUARTERLY AT 10 BASIS POINTS OVER THREEMONTH POUND LONDON INTERBANK OFFERED RATE FEES 036 9404120077 940412 CORPORATE FOCUS WESTERN WASTE'S FOUNDER INSTITUTES AN EFFICIENCY DRIVE COLLAPSE OF LUCRATIVE BUYOUT LEADS TO HIRING OF REFORMMINDED OUTSIDER BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL TORRANCE CALIF KOSTI SHIRVANIAN BUILT A 100 MILLION PERSONAL FORTUNE DOING SOCIETY'S DIRTY WORK PICKING UP GARBAGE AND GUIDED HIS WESTERN WASTE INDUSTRIES INC INTO THE TOP RANKS OF REGIONAL TRASHHAULING COMPANIES BUT LAST YEAR THE 64YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER WENT LOOKING FOR SOMEONE TO DO HIS DIRTY WORK CUT WESTERN'S BLOATED COSTS AND WHIP THE HAULER'S OPERATIONS INTO TOP CONDITION MADE TRIM AND MORE PROFITABLE WESTERN COULD PAY MR SHIRVANIAN AND FELLOW SHAREHOLDERS A HUGE REWARD ALL ACROSS THE WASTE INDUSTRY COMPANIES ARE GOING THROUGH A PAINFUL TRANSITION GROWTH HAS SLOWED AS CONSUMERS AND BUSINESSES REDUCE THEIR WASTE OUTPUT AND RECYCLE MORE COSTS ARE UP DUE TO INCREASED ENVIRONMENTAL REGULATION AND CUSTOMER DEMAND FOR BETTER SERVICE AND PRICE COMPETITION IS FIERCE AS HAULERS STRUGGLE TO RETAIN CUSTOMERS WESTERN ALONG WITH INDUSTRY LEADERS WMX TECHNOLOGIES INC AND BROWNINGFERRIS INDUSTRIES INC NEEDS TO CUT COSTS AND GET MORE REVENUE OUT OF HUGE RECENT INVESTMENTS IN DUMPS AND HAULING EQUIPMENT MR SHIRVANIAN WHO DEVOTED 39 YEARS TO BUILDING WESTERN SEEMED TO FIND THE PERFECT CANDIDATE TO DO THAT WHEN HE AGREED IN SEPTEMBER TO SELL WESTERN TO BROWNINGFERRIS IN A STOCK TRANSACTION VALUED AT MORE THAN 400 MILLION BROWNINGFERRIS WAS EXPECTED TO FOLD THE SMALLER HAULER INTO ITS OWN OPERATIONS REALIZING BIG SAVINGS AND THUS JUSTIFYING THE SIZABLE PREMIUM WESTERN HOLDERS WERE TO RECEIVE MR SHIRVANIAN WOULD HAVE BEEN PAID BROWNINGFERRIS STOCK THEN VALUED AT ABOUT 135 MILLION BUT BROWNINGFERRIS BACKED OUT LAST OCTOBER AFTER EXAMINING WESTERN'S OPERATIONS THE COMPANIES WON'T SAY WHY THAT LEFT MR SHIRVANIAN A CHARISMATIC ENTREPRENEUR MORE ADEPT AT BUILDING OPERATIONS THAN RUNNING THEM IN NEED OF HELP AND WITH WESTERN'S SHARE PRICE FALLING THERE WAS ADDED URGENCY THE STOCK CLOSED YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 1475 A SHARE DOWN 125 CENTS AFTER REACHING 2250 IN THE DAYS AFTER THE BROWNINGFERRIS DEAL WAS ANNOUNCED SO IN DECEMBER MR SHIRVANIAN NAMED THE COMPANY'S FIRSTEVER CHIEF OPERATING OFFICER 65YEAROLD RAMSEY G DILIBERO A LONGTIME WASTEINDUSTRY EXECUTIVE RETIRED FROM BROWNINGFERRIS IN 1992 MR DILIBERO HAS MOVED TO SLASH OPERATING COSTS ORDERING MANAGERS TO SQUEEZE MORE REVENUE OUT OF EVERY TRASH TRUCK NEW SET OF TIRES TANK OF FUEL AND TRIP TO THE MECHANIC BUT MR DILIBERO PROBABLY WON'T STAY MUCH LONGER THAN A YEAR HE SAYS HE HOPES TO IMPROVE OPERATIONS WITHIN A YEAR THEN FIND SOMEONE ELSE TO PREVENT BACKSLIDING SO HE CAN RETURN HOME TO THE EAST COAST MR SHIRVANIAN HAS THE MOST TO GAIN FROM A WESTERN TURNAROUND AND A POSSIBLE SALE WHICH HE DOESN'T RULE OUT HIS 385 STAKE IN THE COMPANY HAS FALLEN IN VALUE BY NEARLY 50 MILLION SINCE THE BROWNINGFERRIS DEAL COLLAPSED BUT THE COMPANY HAS FAR TO GO TRACKING REVENUE BY LABOR AND OTHER COST CATEGORIES AFTER HIS ARRIVAL MR DILIBERO FOUND THAT WESTERN PERFORMED AT OR BETTER THAN INDUSTRY AVERAGES IN ONLY 7 OF ITS DIVISIONS HE SAYS HE HAS INCREASED THAT TO 27 IN RECENT MONTHS SAVING 1 MILLION IN ANNUAL COSTS FOR INSTANCE BY CONSOLIDATING FOUR DIVISIONS THAT HAUL TRASH IN THE LOS ANGELES AREA IN MONTHLY MEETINGS WITH MANAGERS MR DILIBERO IS ALSO MOVING TO BRING DISCIPLINE TO AN OPERATION THAT FOR YEARS MOVED TO THE PERSONAL BEAT OF MR SHIRVANIAN AN ENTREPRENEUR TRADITIONALLY REALLY NOT ORGANIZED ANYBODY CAN CALL HIM ANYBODY CAN SEE HIM MR DILIBERO SAYS SWITCHING FROM A COMPANY FOUNDER'S IDIOSYNCRATIC RULE TO THE ORGANIZATION MAN'S APPROACH CAN BE TOUGH MR SHIRVANIAN STARTED WESTERN IN 1955 WITH A SINGLE TRUCK HIS BROTHER SISTER AND BROTHERINLAW ARE ALL CORPORATE OFFICERS AND WESTERN DABBLED UNPROFITABLY FOR YEARS IN A BUSINESS HE IS PERSONALLY FASCINATED BY TRUCKBODY MANUFACTURING BUT IN INTERVIEWS AT LEAST MESSRS SHIRVANIAN AND DILIBERO SEEM TO BE ON THE SAME WAVELENGTH MR DILIBERO SAYS OF MEN SUCH AS HIS BOSS THEY HAVE A TENDENCY TO WANT TO HANG ON AND TO BE EVERYWHERE BUT ONCE THEY START TO WITHDRAW AND HAVE PEACE IN THEIR LIVES THEY LIKE IT MR SHIRVANIAN SAYS OF HIS NEW HELPER PEOPLE KNOW WE'VE CLEANED UP OUR ACT BY BRINGING IN RAMSEY MR SHIRVANIAN SAYS HE HAS NO PLANS TO RETIRE AND REMAINS DEEPLY INVOLVED IN THE COMPANY'S BUSINESS A SALE OF WESTERN STILL IS POSSIBLE AFTER THE BROWNINGFERRIS DEAL COLLAPSED IT HIRED INVESTMENT BANKERS AT SALOMON BROTHERS INC TO PERFORM A SHAREHOLDER VALUE STUDY WHICH IS STILL IN THE WORKS MR SHIRVANIAN SAYS OPTIONS INCLUDE SELLING THE COMPANY GOING IT ALONE AT THE CURRENT SIZE OR MAKING ACQUISITIONS TO INCREASE WESTERN'S MARKET SHARE HE WON'T DISCUSS THE SALOMON STUDY BROWNINGFERRIS BASED IN HOUSTON MAY REMAIN THE MOST LIKELY SUITOR ITS STOCK HAS BEEN STRONGER THAN NATIONAL RIVALS WMX TECHNOLOGIES AND LAIDLAW INC AND WESTERN AND BROWNINGFERRIS HAVE HAULING OPERATIONS AND DUMPS THAT WOULD FIT NICELY TOGETHER ANALYSTS SAY NEITHER COMPANY WILL COMMENT ON WHETHER THEY HAVE HELD TALKS SINCE THE FALL IN THE MEANTIME CONDITIONS ARE DIFFICULT CALIFORNIA'S RECESSION AND THE STATE'S EMBRACING OF AMBITIOUS RECYCLING GOALS HAVE CUT DEEPLY INTO WASTE VOLUME GOING TO DUMPS TRADITIONALLY HAULERS' MOST PROFITABLE ACTIVITY IT WAS A DOUBLE BANG MR SHIRVANIAN SAYS WITH THE DIMMED OUTLOOK WESTERN IS MOVING TO CUT ITS AGGRESSIVE CAPITAL SPENDING OF RECENT YEARS AND HAS WRITTEN DOWN SOME INVESTMENTS IN DUMPS WESTERN MADE CAPITAL INVESTMENTS OF 44 MILLION IN THE YEAR ENDED JUNE 30 1993 AND HOPES TO CUT OUTLAYS TO 35 MILLION IN FISCAL 1994 AND TO 25 MILLION TO 30 MILLION IN YEARS AFTER THAT WESTERN'S MOST ATTRACTIVE ASSET ITS HUGE EL SOBRANTE DUMP IN RIVERSIDE COUNTY EAST OF LOS ANGELES ISN'T PAYING OFF AS QUICKLY AS SOME ANALYSTS EXPECTED WESTERN HOPED BY NOW TO BE TAKING BIG LOADS OF LOS ANGELES TRASH THERE INSTEAD OF THE RELATIVELY SMALL 200 TONS IN DAILY SHIPMENTS IT CURRENTLY SENDS THE PROBLEM LOS ANGELES COUNTY'S DUMP CAPACITY IS LASTING LONGER THAN ENVISIONED AN EXPECTED 10YEAR EXPANSION AT THE COUNTY'S HUGE PUENTE HILLS DUMP WHICH CHARGES ROCKBOTTOM FEES TO HAULERS COULD KEEP TRASH FROM EL SOBRANTE FOR YEARS AN EXPANSION INTO NORTHERN CALIFORNIA HAS PROVED EVEN TOUGHER WESTERN BEGAN WORK JULY 1 1993 ON A SIXYEAR 80 MILLION TRASH AND RECYCLINGCOLLECTION CONTRACT IN SAN JOSE ONLY TO DISCOVER IT BADLY UNDERBID THE WORK IT NEEDED 29 MORE TRUCKS THAN EXPECTED AND ESTIMATES IT WILL LOSE ABOUT 6 MILLION OVER THE LIFE OF THE CONTRACT 9404120076 940412 BUSINESS BRIEF CIT GROUP HOLDINGS INC FIRSTQUARTER NET ROSE 10 ON GROWTH IN RECEIVABLES CIT GROUP HOLDINGS INC NEW YORK REPORTED 10 INCREASE IN FIRSTQUARTER NET INCOME TO 48 MILLION FROM 435 MILLION A YEAR EARLIER THE ASSETBASED FINANCE COMPANY ATTRIBUTED THE IMPROVED PERFORMANCE TO GROWTH IN FINANCE RECEIVABLES REFLECTING THE IMPROVEMENT IN THE US ECONOMY NET INTEREST REVENUE ROSE 7 TO 1751 MILLION FROM 163 MILLION DURING THE QUARTER THE COMPANY COMPLETED THE ACQUISITION OF BARCLAYS COMMERCIAL CORP FROM BARCLAYS PLC OF LONDON ADDING MORE THAN 700 MILLION IN FINANCE RECEIVABLES TOTAL ASSETS WERE 146 BILLION UP ABOUT 64 FROM 1373 BILLION CIT GROUP HOLDINGS IS 60 OWNED BY DAIICHI KANGYO BANK LTD OF TOKYO AND 40 OWNED BY CHEMICAL BANKING CORP OF NEW YORK 9404120075 940412 TRANSCO UNIT SELLS NOTES HOUSTON TRANSCO ENERGY CO SAID ITS TEXAS GAS TRANSMISSION CORP UNIT SOLD 150 MILLION OF 8 5/8 SENIOR UNSECURED NOTES DUE APRIL 1 2004 THE NATURALGAS PIPELINE COMPANY SAID THE PROCEEDS WOULD BE USED TO REDEEM TEXAS GAS TRANSMISSION'S 10 DEBENTURES THAT MATURE NOV A SPOKESMAN FOR TRANSCO SAID REDEMPTION NOTICES ALREADY HAVE BEEN MAILED TO HOLDERS OF THOSE DEBENTURES MERRILL LYNCH & CO WAS LEAD UNDERWRITER FOR THE OFFERING 9404120073 940412 BEAR STEARNS HIRES ANGELL AS ECONOMIST BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BEAR STEARNS COS MOVED QUICKLY TO REPLACE ITS RECENTLY DEPOSED CHIEF ECONOMIST BY HIRING A FORMER FEDERAL RESERVE BOARD GOVERNOR AMID THE STEEPEST BONDMARKET PLUNGE IN SEVEN YEARS THE BIG TRADING FIRM SAID WAYNE D ANGELL WHO RECENTLY COMPLETED AN EIGHTYEAR TERM AT THE FED WILL SUCCEED LAWRENCE A KUDLOW AS CHIEF ECONOMIST MR KUDLOW WHO RECENTLY ACKNOWLEDGED HAVING AN ALCOHOL AND DRUGABUSE PROBLEM WAS FORCED TO RESIGN LAST MONTH AFTER MISSING A MEETING OF INSTITUTIONAL INVESTORS PEOPLE FAMILIAR WITH THE FIRM SAID THE HIRING OF MR ANGELL 63 YEARS OLD IS SIGNIFICANT FOR BEAR STEARNS THE FIRM CLEARLY HAD MISSED MR KUDLOW'S ECONOMIC STANCE AND INPUT DURING ONE OF THE MOST VOLATILE INTERESTRATE PERIODS IN RECENT TIMES BEAR STEARNS WENT OUT OF ITS WAY TO COURT MR ANGELL WITH NEARLY EVERY SENIOR EXECUTIVE PRESSING HIM TO COME ON BOARD SINCE LEAVING THE FED MR ANGELL HAS BEEN SOMETHING OF A HOT COMMODITY ON WALL STREET HE HAD BEEN CHARGING SOME ANALYSTS 100 A MINUTE FOR ADVICE ON INTEREST RATES HIS HIRING COMES AS WALL STREET FIRMS GRAPPLE WITH BONDMARKET TRADING AND FINANCING LOSSES STEMMING FROM A SUDDEN SURGE IN LONGTERM RATES THE 30YEAR TREASURY BOND'S YIELD HAS SURGED TO 723 AS OF YESTERDAY COMPARED WITH 642 AT YEAR END SEPARATELY BEAR STEARNS POSTED NET INCOME OF 1155 MILLION OR 93 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED MARCH 25 THOUGH ITS NET WAS 45 HIGHER THAN A YEAR EARLIER IT FELL 14 FROM THE SECOND QUARTER SIGNALING A SLOWDOWN IN WALL STREET'S THREEYEAR PROFIT BOOM IN THE CURRENT QUARTER AS REPORTED BEAR STEARNS HAS HAD MORTGAGEBOND LOSSES OF AS MUCH AS 25 MILLION TRADERS SAY WHILE THE FOURTH QUARTER IS ONLY TWO WEEKS OLD BOTH THE EQUITY AND FIXEDINCOME MARKETS HAVE BEEN SUBJECT TO EXTREME VOLATILITY JAMES E CAYNE BEAR STEARNS'S PRESIDENT AND CHIEF EXECUTIVE SAID IN A STATEMENT BEAR STEARNS HAS BEEN IMPACTED BY THESE CONDITIONS RESULTING IN MODERATE MARKTOMARKET LOSSES MR CAYNE DECLINED TO ELABORATE AT THE FED MR ANGELL PREACHED THE WISDOM OF CUTTING THE INFLATION RATE TO ZERO AND HAS LONG BEEN AN ADVOCATE OF TRACKING COMMODITY PRICES PARTICULARLY GOLD TO SET MONETARY POLICY AS THE CONSCIENCE OF THE FED MR ANGELL WAS A CRUCIAL PARTICIPANT IN THE SUCCESSFUL STRATEGY THAT BROUGHT INFLATION AND INTEREST RATES TO 30YEAR LOWS MR KUDLOW RECENTLY WROTE IN AN OPED PIECE IN THIS NEWSPAPER FOR HIS PART MR ANGELL ISN'T SHY ABOUT WHAT HE BELIEVES HE BRINGS TO BEAR STEARNS AS I SEE IT I HAVE HAD A RECORD OF ANTICIPATING TURNING POINTS IN MONETARY POLICY HE SAID IN AN INTERVIEW BEFORE RAISING RATES THIS YEAR FOR INSTANCE FED POLICY MAKERS VOTED 102 IN ITS DECEMBER MEETING TO HOLD RATES STEADY MR ANGELL WAS ONE OF THE TWO DISSENTERS IN FAVOR OF HIGHER RATES MR ANGELL IS THE SECOND FORMER FED OFFICIAL TO JOIN THE RANKS OF WALL STREET TRADING FIRMS THIS YEAR IN FEBRUARY FED VICE CHAIRMAN DAVID MULLINS RESIGNED TO JOIN SEVERAL FORMER SALOMON BROTHERS INC EXECUTIVES AT A FLEDGLING BONDARBITRAGE TRADING FIRM IN THE INTERVIEW MR ANGELL DECLINED TO PREDICT THE COURSE OF INTEREST RATES OR WHETHER THE FED WILL RAISE RATES FURTHER BUT IN AN OPED PIECE IN THIS NEWSPAPER YESTERDAY HE URGED THE FED TO BOOST THE DISCOUNT RATE THE INTEREST RATE THE FED CHARGES ON LOANS TO BANKS TO 4 A FULL PERCENTAGEPOINT RISE NEXT LOOK AT GOLD TO TELL YOU IF THE CONCOMITANT 45 FEDERALFUNDS RATE IS TOO HIGH THEN WATCH BOND PRICES RALLY HE WROTE A 5 YIELD FOR 30YEAR BONDS WAS AND STILL MAY BE ACHIEVABLE BEFORE THE END OF THE YEAR BUT IT WILL NOT OCCUR WITHOUT PROMPT ACTION MR ANGELL WROTE THE FEDERALFUNDS RATE IS THE RATE ON OVERNIGHT LOANS BETWEEN BANKS MR ANGELL SAYS HE JOINED BEAR STEARNS BECAUSE AMONG OTHER THINGS HE WANTED HIS ECONOMIC VIEWS TO HAVE A DIRECT IMPACT ON A FIRM AND ITS CLIENTS IT SEEMED TO ME THE LEVERAGE FROM WHAT MY CONTRIBUTION WOULD BE WOULD BE ENHANCED HE SAYS MR ANGELL SAID MONEY DIDN'T PLAY A ROLE IN HIS MOVE AS A SENIOR MANAGING DIRECTOR AT BEAR STEARNS HE WILL EARN AN ANNUAL BASE SALARY OF 200000 PLUS A BONUS THAT COULD TOTAL SEVERAL MILLION DOLLARS PEOPLE FAMILIAR WITH THE FIRM SAID AS FED GOVERNOR HE EARNED AN ANNUAL SALARY OF 123100 HE DECLINED TO DISCUSS HIS NEW PAY ARRANGEMENT AS DID BEAR STEARNS FOR ITS 1993 FISCAL YEAR ENDED IN JUNE BEAR STEARNS'S TOP TWO EXECUTIVES RECEIVED PAYCHECKS OF 159 MILLION APIECE MEANWHILE MR ANGELL SAID HE DIDN'T EXPECT TO BE CONFRONTED WITH PRESSURE TO SUCCUMB TO BEAR STEARNS'S WHIMS OR CLIENT NEEDS PROBLEMS AFFECTING SOME WALL STREET ECONOMISTS THEY KNOW MY HISTORY AND MY MAKEUP AND PRESUMABLY SHARE THE VIEWS ABOUT INTEGRITY THAT I HOLD SO DEAR MR ANGELL SAID IN ITS FISCAL THIRD QUARTER THE COMPANY'S REVENUE NET OF INTEREST EXPENSE GREW 15 TO 6536 MILLION REFLECTING THE SURGE IN INTEREST RATES THE FIRM'S INTEREST EXPENSE ALSO SHOT UP 50 TO 2453 MILLION FOR THE FISCAL NINE MONTHS BEAR STEARNS SAID NET INCOME WAS 3546 MILLION OR 279 A SHARE UP 49 FROM THE 2377 MILLION OR 199 A SHARE IN THE YEAREARLIER PERIOD FOR THE NINE MONTHS BEAR STEARNS'S ANNUALIZED PRETAX RETURN ON EQUITY WAS 503 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BEAR STEARNS SHARES CLOSED AT 20375 DOWN 50 CENTS 9404120071 940412 LEISURE & ARTS ON SPORTS OLAZABAL PUTTS HIS WAY TO FIRST MAJOR' BY FREDERICK C KLEIN AUGUSTA GA THE QUESTION PUT TO THE VETERAN RAY FLOYD THE DAY BEFORE THE MASTERS GOLF TOURNAMENT STARTED WOULD HAVE SOUNDED SILLY ANYPLACE BUT AT AUGUSTA NATIONAL WHERE 12 REPEAT WINNERS HAD CAPTURED 33 OF THE 57 TITLES THERETOFORE CONTESTED THE MAN WHO'D WON IN 1976 AND CHALLENGED SEVERAL OTHER TIMES ANSWERED WITHOUT BLINKING IT'S HARD TO BE A FIRSTTIME WINNER HERE BUT IT'S DONE HE ASSURED THE MASTERS ISN'T ALWAYS WON BY SOMEONE WHO'S WON BEFORE THIS TURNED OUT TO BE ONE OF THOSE YEARS AND THEN SOME THE MAN WHO WON 28YEAROLD JOSEMARIA OLAZABAL OF SPAIN NOT ONLY HAD NEVER WON A MASTERS BUT HAD NEVER WON ONE OF GOLF'S MAJORS ALTHOUGH HE'S BEEN COUNTED AMONG THE GAME'S BEST FOR SEVERAL YEARS CLOSEST TO OLAZABAL ON THE SCOREBOARD WAS HUSKY TOM LEHMAN A 35YEAROLD MINNESOTAN WHO'D NEVER WON ANY TOURNAMENT ON THE MAJORLEAGUE LEVEL THE TWO MADE UP SUNDAY'S LAST PAIRING IN A FINAL ROUND MORE NOTABLE FOR THE SHOTS THAT MISSED THAN FOR THOSE THAT WENT IN THE CRUCIAL BULL'SEYE WAS OLAZABAL'S A 30FOOT EAGLE PUTT ON THE PARFIVE 15TH HOLE THAT UPPED HIS LEAD OVER LEHMAN AND AUGUSTA NATIVE AND PASTCHAMP LARRY MIZE PLAYING IN THE TWOSOME AHEAD TO TWO STROKES BUT THEN THE SPANIARD HAD TO WATCH LEHMAN NARROWLY MISS HIS OWN SHORTER EAGLE TRY ON 15 FROM ABOUT 15 FEET AS WELL AS MAKABLE BIRDIE PUTTS ON THE NEXT TWO HOLES BEFORE BOTCHING THE LAST HOLE AND NEEDING A LONGISH PAR PUTT TO STAY ALIVE THAT ONE WENT AWRY TOO WHEN DID I KNOW I'D WON SMILED OLAZABAL WHOSE LASTROUND 69 GAVE HIM A 72HOLE TOTAL OF 279 STROKES NINE UNDER PAR TO LEHMAN'S 72 AND 281 AND THE THIRDPLACE MIZE'S 71 AND 282 WHEN HIS LEHMAN'S PUTT ON 18 MISSED AS IS TYPICAL OF MANY OF THESE AFFAIRS THE COURSE WAS THE COSTAR LAST WEEK AND ITS ROLE WAS MAGNIFIED BY THE WEATHER SUNNY SKIES AND COOL BREEZES ON THURSDAY AND FRIDAY SHOWED THE BRILLIANT STANDS OF DOGWOOD AND AZALEA TO MAXIMUM ADVANTAGE AND CLOUDS ON SATURDAY AND SUNDAY DIDN'T DIM THE GLORIOUS FLORAL SHOW AUGUSTA NATIONAL'S FAIRWAYS ALWAYS LUSH WERE DOWNRIGHT CARPETLIKE THE COURSE IS IMMACULATE TRULY IMPECCABLE I'VE NEVER SEEN THE GRASS SO FULL GUSHED FLOYD ON WEDNESDAY IT GOT TO WHERE I WAS LOOKING FOR BARE SPOTS BUT COULDN'T FIND ANY BUT THE SAME WEATHER THAT PROVIDED A FEAST FOR THE EYES LED TO A BIRDIE FAMINE AMONG THE CONTESTANTS AUGUSTA NATIONAL'S GREENS ALWAYS ARE AMONG THE FIRMEST AND SLICKEST IN GOLFDOM AND ONLY RAIN CAN DULL THEIR TERRORS THERE WAS SOME ON WEDNESDAY NIGHT BUT NOT ENOUGH TO HELP AND THE WINDS AND TIGHT PIN POSITIONS MADE THINGS DICIER STILL IRON SHOTS BOUNCED INSTEAD OF STUCK PUTTS RAN INSTEAD OF STOPPED SMALL ERRORS HAD LARGE CONSEQUENCES A FOURDAY SCORE OF 288 OR EVEN PAR WAS WORTH 13TH PLACE THE BEST FINISH IN FIVE YEARS THAT COMPLAINTS ABOUT THE COURSE WERE MUTED REFLECTED THE GOLFING TOURISTS' DISINCLINATION TO RILE THE COURSE'S LORDLY PROPRIETORS THE MASTERS AFTER ALL IS AN INVITATIONAL AND ALTHOUGH THE QUALIFICATIONS FOR ENTRY ARE POSTED I SUPPOSE YOU NEVER KNOW EVEN JACK NICKLAUS THE GREATEST OF 'EM ALL WAS CIRCUMSPECT AUGUSTA NATIONAL'S GREENS WERE JUST ABOVE THE POINT OF BEING RIDICULOUS HE SAID PRETOURNEY BUT HE QUICKLY ADDED OF COURSE THAT'S THE WAY YOU WANT THEM TO BE NOWHERE WAS AUGUSTA NATIONAL SNAKIER THAN AT HOLE NO 15 IT'S 500 YARDS LONG WITH A POND FRONTING THE GREEN BUT THAT'S A DRIVE AND A FIVE IRON OR LESS FOR TODAY'S LONG HITTERS AND IT'S BEEN A BIRDIE HEAVEN IN RECENT OUTINGS BUT THIS YEAR THE COURSE'S OVERSEERS SHAVED THE BANK BETWEEN GREEN AND WATER LIKE A BABY'S REAR SAID GREG NORMAN AND EVERY SHOT THAT CAME UP SHORT INCLUDING ONE OF NORMAN'S GOT WET TOM WATSON A TWOTIME CHAMP AND 21TIME COMPETITOR HERE PUT BALLS IN THE WATER DURING ALL FOUR OF HIS ROUNDS INDICATING THE LIMITS OF KNOWING THE TERRITORY A FOOT OR TWO LESS ON ONE SHOT AT 15 MIGHT HAVE CHANGED THE OUTCOME THAT WAS ON THE FIVEIRON THAT PRECEDED OLAZABAL'S SUNDAY EAGLE IT CLUNG TO THE GREEN'S FRONT EDGE BUT WHEN I SAW IT BOUNCE I THOUGHT IT COULD GO IN THE WATER THE CHAMP CONFESSED A LITTLE SHORTER AND IT MIGHT HAVE OLAZABAL'S TRIUMPH COMPLETES THE COMING OF AGE OF A TALENTED YOUNG PLAYER THE SLIM DARKHAIRED GREENSKEEPER'S SON FROM FUENTERRABIA WHO GREW UP IN A HOUSE ONLY A CHIP SHOT AWAY FROM THE COURSE ON WHICH HIS FATHER WORKED WAS A CRACK AMATEUR AS A TEEN A WINNER ON THE EUROPEAN PRO TOUR SINCE AGE 20 AND A FOURTIME MEMBER OF THE EUROPEAN RYDER CUP SQUAD THERE HE PLAYED ROBIN TO SEVE BALLESTEROS'S BATMAN IN A FREQUENT PAIRING THAT HELPED LIFT THE EUROPEANS TO PARITY WITH THE US IN THE ONCEONESIDED EVENT OLAZABAL'S GAME IS QUITE DIFFERENT FROM THAT OF HIS MENTOR THE FLAMBOYANT BALLESTEROS 37 WHOSE MASTERS TITLE IN 1980 BEGAN A RUN OF NINE EUROPEAN WINNERS HERE IN THE PAST 15 YEARS THE YOUNGER MAN LACKS BALLESTEROS'S POWER BUT MAKES UP FOR IT WITH GREATER PRECISION ESPECIALLY AROUND THE GREENS BUT HE WAS MORE THAN WILLING TO ACKNOWLEDGE HIS DEBT AND TO DISCOURAGE COMPARISONS SEVE'S HAD A LOT OF INFLUENCE ON ME HE GAVE ME THE COURAGE AND DETERMINATION TO KEEP PLAYING SAID OLAZABAL HE ADDED HE'S HAD PROBLEMS LATELY BUT I CAN'T COMPARE WITH HIM YET HE'S DONE MUCH MORE THAN I HAVE RUNNERUP LEHMAN'S TALE WAS NO LESS INTERESTING HERE'S A MAN WHO BARELY EARNED GAS MONEY IN THREE YEARS ON THE PGA TOUR IN THE EARLY '80S WENT OFF TO PLAY IN ASIA AND ON VARIOUS SATELLITE CIRCUITS AND MIGHT'VE CHUCKED TOURNAMENT GOLF TO COACH AT THE UNIVERSITY OF MINNESOTA IF THE SCHOOL HADN'T PUT HIM OFF BY INSISTING THAT HE ALSO SPEND HIS WINTERS RENTING CROSSCOUNTRY SKIS FROM ITS PRO SHOP SOMEWHERE ALONG THE LINE HE LEARNED HIS TRADE AND BACK WITH THE BIG BOYS POCKETED MORE THAN 1 MILLION THE PAST TWO YEARS AUGUSTA NATIONAL SUITS THE PREDOMINANT RIGHTTOLEFT DRIFT OF HIS SHOTS THAT'S CALLED A DRAW IF YOU'RE A PRO A HOOK IF YOU'RE A HACKER HE PLACED THIRD HERE LAST YEAR THIRD IN '93 SECOND THIS YEAR THAT'S A NICE PROGRESSION HE WAS TOLD AFTERWARD THINK IF I STAY HOME NEXT YEAR THEY'LL MAIL ME THE TROPHY LEHMAN ASKED IN REPLY 9404120069 940412 CAMPUS DILEMMA THE RISK OF LAWSUITS DISHEARTENS COLLEGES FIGHTING DATE RAPE MEASURES TO ASSIST VICTIMS LEAD TO BITTER WRANGLES OVER RIGHTS OF OTHERS AMATEURS ON HEARING PANELS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL VALPARAISO IND SET IN A QUIET TOWN WHOSE BIGGEST ACTIVITY IS AN ANNUAL POPCORN FESTIVAL HONORING NATIVE SON ORVILLE REDENBACHER VALPARAISO UNIVERSITY IS ALMOST QUAINTLY OLDFASHIONED IT STILL IMPOSES CURFEWS ON FRESHMEN MALE AND FEMALE STUDENTS CAN'T VISIT EACH OTHER'S ROOMS AFTER HOURS DESPITE VIGOROUS CAMPUS PROTEST TWO YEARS AGO THE HEALTH CENTER WON'T DISTRIBUTE CONDOMS AS A CHRISTIAN INSTITUTION EXPLAINS STUDENT ANNE SHEPLER THIS PLACE HAS ALWAYS TRIED TO AVOID DEALING AT ALL WITH SEXUALITY BUT SCHOOL OFFICIALS HAVEN'T BEEN ABLE TO AVOID CONTENDING WITH THE NATIONAL OUTCRY ABOUT DATE RAPE AND WITH THE PERCEPTION THAT IT IS RAMPANT TWO YEARS AGO OFFICIALS AT THE LUTHERANAFFILIATED UNIVERSITY BEGAN WORKING ON A POLICY TO COMBAT SEXUAL ASSAULT LAST SPRING AT A TAKE BACK THE NIGHT ANTIRAPE DEMONSTRATION ABOUT 100 STUDENTS WORE ARMBANDS TO SIGNIFY THAT AT SOME TIME IN THEIR LIVES THEY HAD BEEN ASSAULTED AFTER THE RALLY SEVERAL WOMEN STOOD BEFORE A MICROPHONE AT THE CAMPUS COFFEEHOUSE AND TOLD OF BEING RAPED AT VALPARAISO THE SCHOOL'S PRESIDENT ALAN HARRE QUICKLY CONVENED A MEETING WITH A GROUP OF ADMINISTRATORS AT WHICH HE ASKED SOME OF THE WOMEN TO DISCUSS THEIR EXPERIENCES THE GATHERING LASTED UNTIL ABOUT 3 AM AND LEFT SOME OF THE ADMINISTRATORS CLOSE TO TEARS SAYS KIRSTEN LEE A STUDENT WHO HELPED ORGANIZE THE EVENT AMONG THE STUDENTS' AIMS TO HELP VICTIMS GET SOME REDRESS WITHOUT HAVING TO ENDURE THE EMOTIONAL TRAUMA OF A CRIMINAL TRIAL THUS VALPARAISO JOINED THE GROWING NUMBER OF CAMPUSES THROWN INTO TURMOIL OVER HOW TO ADAPT A DISCIPLINARY SYSTEM TO CHARGES THAT IF BROUGHT IN CRIMINAL COURT WOULD BE FELONIES AS OTHER SCHOOLS ALSO ARE LEARNING WHEN IT COMES TO SEXUAL POLITICS IT IS MUCH SIMPLER TO CREATE NEW RULES THAN TO ENFORCE THEM OR PREDICT THEIR REPERCUSSIONS MR HARRE SAYS HE WAS TOUCHED BY THE POIGNANCY OF THE ISSUES BY THE START OF THE CURRENT SCHOOL YEAR VALPARAISO HAD A SEXUALASSAULT POLICY IN PLACE IN ADDITION TO PROVIDING FOR DISCIPLINARY PROCEDURES THE SCHOOL POSTED IN EVERY DORMITORY ROOM A LIST OF SUGGESTIONS ON HOW STUDENTS COULD AVOID BEING ACCUSED OF ASSAULT OR AVOID BEING ASSAULTED THEMSELVES VALPARAISO ALSO SET UP A SPECIAL COUNSELING OFFICE FOR VICTIMS HOUSED IN THE SAME BUILDING AS THE HOMEECONOMICS DEPARTMENT THE MEASURES WERE WELLRECEIVED ON CAMPUS YOU CAN SAY THAT BY HANDING OUT CONDOMS YOU'RE ENCOURAGING PROMISCUITY SAYS SENIOR DANIEL SASSE WHO SERVES ON A CAMPUS COMMITTEE ON SEXUAL ASSAULT THE FACT THAT PEOPLE WANT TO HELP SOMEONE WHO HAS BEEN RAPED YOU CAN'T REALLY ARGUE WITH THAT BUT IN THE AGE OF LITIGATION HELPING ONE GROUP OFTEN LEADS TO LAWSUITS BY ANOTHER AT YALE UNIVERSITY A STAR BASKETBALL PLAYER WHO WAS KICKED OUT LAST YEAR FOR AN ALLEGED RAPE HAS SUED THE SCHOOL OVER ITS DISCIPLINARY PROCEDURES SIMILAR LAWSUITS HAVE CONFRONTED OLD DOMINION UNIVERSITY IN VIRGINIA AND THE UNIVERSITY OF NEW HAMPSHIRE IT WAS TO BE MUCH THE SAME AT VALPARAISO WHEN THE NEW SEXUALASSAULT POLICY WAS INVOKED LAST FALL THE AFTERMATH SEVERELY TESTED THE UNIVERSITY'S RESOLVE TO DEAL WITH DATE RAPE SHORTLY AFTER THE SEMESTER BEGAN A WOMAN ACCUSED A MAN SHE HAD KNOWN SINCE HIGH SCHOOL OF RAPING HER IN LATE AUGUST SHE TOLD CAMPUS AUTHORITIES SHE ASKED THE MAN TO DINNER AT THE STUDENT UNION BECAUSE HE HAD BEEN MAKING ADVANCES TOWARD HER AND SHE WANTED TO EXPLAIN THAT SHE WASN'T INTERESTED IN A ROMANTIC RELATIONSHIP LATER THAT WEEK ASSUMING SHE HAD MADE THE MESSAGE CLEAR DURING THE DINNER SHE ACCEPTED THE MAN'S INVITATION TO A FRATERNITY DRINKING PARTY WHERE SHE SAID THE MAN LED HER INTO A SMALL ROOM LOCKED THE DOOR AND RAPED HER THE MAN TOLD A VERY DIFFERENT STORY HE SAID THAT THE WOMAN HAD BEEN FLIRTING WITH HIM AND THAT SHE HAD PARTICIPATED VOLUNTARILY IN A FRATERNITYPARTY DRINKING GAME AROUND 3 AM HE SAID THE TWO OF THEM HAD SEXUAL INTERCOURSE HE MAINTAINED THAT THE SEX WAS CONSENSUAL AND THAT SHE ACCUSED HIM OF RAPE AFTER HAVING SECOND THOUGHTS AND GUILT ABOUT BETRAYING HER BOYFRIEND ACCORDING TO THE MAN'S LAWYER JOHN BUSHEMI THROUGH MR BUSHEMI THE MAN DECLINED TO BE INTERVIEWED BECAUSE OF THE NATURE OF THE ALLEGATIONS AND THE FACT THAT NO ONE HAS BEEN CRIMINALLY CHARGED THIS NEWSPAPER IS WITHHOLDING BOTH OF THE STUDENTS' NAMES IF A STUDENT CHOOSES TO PRESS CHARGES A CAMPUS DATERAPE CASE MAY WIND UP IN CRIMINAL COURT WHERE SORTING THROUGH CONFLICTING STORIES WITH LITTLE INDEPENDENT EVIDENCE IS DAUNTING EVEN FOR PROFESSIONAL LAW ENFORCERS IN CAMPUS PROCEEDINGS SCHOOL OFFICIALS FIND THE TASK STILL MORE COMPLICATED AS THEY TRY TO FOLLOW UNIVERSITY POLICY EXACTLY AND AVOID MAKING ANY MISSTEPS THAT COULD HOLD LEGAL IMPLICATIONS STUDENTS HAVE SUED COLLEGES IN CIVIL COURT SEEKING NEW CAMPUS HEARINGS REINSTATEMENT IN SCHOOL AND EVEN MONETARY DAMAGES SOME HAVE WON ON GROUNDS RANGING FROM VIOLATION OF DUEPROCESS RIGHTS DURING A CAMPUS HEARING TO BREACH OF THE SCHOOL'S CONTRACT WITH THE STUDENT BY DEVIATING FROM POLICIES OUTLINED IN THE STUDENT HANDBOOK THE KIND OF AMATEURISM THAT IS INEVITABLE IN THE PROCEEDINGS MAKES YOU VERY VULNERABLE OBSERVES THOMAS H WRIGHT JR VICE PRESIDENT OF PRINCETON UNIVERSITY THE VALPARAISO DISCIPLINARY PANEL CONVENED TO HEAR THE CASE IN A SMALL CLASSROOM IN CHRIST COLLEGE HOME OF THE UNIVERSITY'S ACADEMICHONORS PROGRAM ACCORDING TO STUDENTS WHO WERE PARTICIPANTS THE PANEL COMPOSED OF FOUR ADMINISTRATORS LISTENED TO TESTIMONY FROM SEVERAL STUDENTS AND EVENTUALLY RULED THAT THE MAN HAD VIOLATED VALPARAISO'S SEXUALASSAULT GUIDELINES AND WOULD BE SUSPENDED DEFENDING THE DISCIPLINARY PROCESS WHICH IS SIMILAR TO THAT OF OTHER COLLEGES VALPARAISO SPOKESWOMAN PAT DOWNING EMPHASIZES THAT THESE PROCEDURES HAVE NOTHING TO DO WITH WHETHER A STUDENT IS GUILTY OR NOT GUILTY AT CIVIL OR CRIMINAL LEVELS BUT TWO WEEKS LATER IN FEDERAL DISTRICT COURT IN HAMMOND IND THE MALE STUDENT SUED THE SCHOOL AND THE PANEL MEMBERS CALLING THE HEARING A SHAM AND SEEKING 12 MILLION IN COMPENSATORY AND PUNITIVE DAMAGES THE MAN CHARGES THAT IN THE SCHOOL'S ZEAL TO ASSUAGE CAMPUS CONCERNS ABOUT DATE RAPE IT VIOLATED HIS RIGHTS BY REFUSING TO ALLOW TESTIMONY FROM SEVERAL STUDENTS HE WANTED TO SPEAK ON HIS BEHALF THE SCHOOL ALSO UNREASONABLY REFUSED TO DELAY THE HEARING FOR A WEEK SO THAT THE MAN COULD PREPARE HIS CASE HE CONTENDS IN COURT PAPERS DISPUTING THE CHARGES VALPARAISO RESPONDS THAT THE MAN MISSED THE DEADLINE FOR CHANGING HIS LINEUP OF WITNESSES AND THAT STUDENTS WHO WERE ON HIS LIST BEFORE THE DEADLINE GOT TO TESTIFY THE WOMAN WHO MADE THE RAPE ACCUSATION HASN'T SUED ANYBODY BUT SHE IS BITTER ABOUT THE DISCIPLINARY PROCESS SHE SAYS THE BACKLASH WAS SO BAD THAT SHE CONSIDERED LEAVING VALPARAISO ALTHOUGH SHE BELIEVES THE CAMPUS HEARING ITSELF WAS FAIR SHE LAMENTS THE LOSS OF HER ANONYMITY IN THE PROCESS THOUGH NEITHER THE UNIVERSITY NOR MR BUSHEMI NAMED HER SHE SAYS HER IDENTITY BECAME WIDELY KNOWN AFTER PUBLIC STATEMENTS WERE MADE ABOUT HER CASE THERE'S NO GREAT SECRETS AT VALPARAISO UNIVERSITY SAYS MATT CHRISTIAN A SENIOR WHO BELONGS TO PHI KAPPA PSI THE ACCUSED MAN'S FRATERNITY THE CASE HAS HAD OTHER FALLOUT ON CAMPUS AS WELL ON THE SCHOOL'S SEXUALASSAULT COMMITTEE THE CONVERSATION HAS CHANGED SAYS COMMITTEEMEMBER MR SASSE WHEN DISCUSSING POLICIES EVERYONE NOW ASKS WILL THIS BE OK WITH THE LAWYERS HE SAYS ALSO A SECOND WOMAN WHO ACCUSED A FELLOW STUDENT OF RAPE EARLY IN THE SCHOOL YEAR SAYS VALPARAISO'S CONCERN WITH AVOIDING FURTHER LAWSUITS NEGATED THE PURPOSE OF HAVING A DATERAPE POLICY IN THE FIRST PLACE SHE SAYS HER HEARING WAS POSTPONED FOR SIX WEEKS DURING WHICH TIME SHE REPEATEDLY ENCOUNTERED THE MAN SHE ACCUSED AND SUFFERED FLASHBACKS OF THE ASSAULT SHE ALSO SAYS THAT WHEN IT CAME TIME FOR THE HEARING THE SCHOOL WAS GOING TO PERMIT THE MAN TO BRING HIS LAWYER INTO THE ROOM DURING TESTIMONY SCHOOL POLICY FORBIDS OUTSIDERS TO SIT IN ON A DISCIPLINARY HEARING BUT THE MAN HAD HIRED AN ADJUNCT PROFESSOR IN VALPARAISO'S LAW SCHOOL WHEN SHE LEARNED THAT THE LAWYER WAS TO BE ALLOWED IN THE HEARING ROOM BECAUSE HE WAS A FACULTY MEMBER THE WOMAN SAYS SHE DROPPED HER CHARGES I FELT BY THE TIME IT WAS OVER THAT I WAS MORE VICTIMIZED BY THE SCHOOL THAN I WAS BY THAT MAN SHE SAYS THEY CATERED TO HIM SIMPLY BECAUSE SOMEONE ELSE WAS SUING THEM DARRYL HERSEMANN VALPARAISO'S VICE PRESIDENT FOR STUDENT AFFAIRS DECLINED TO BE INTERVIEWED AND THE SCHOOL WON'T COMMENT ON THE WOMAN'S CASE THE CAMPUS DATERAPE ISSUE IS CREATING ANXIETY AMONG FACULTY STUDENTS AND PARENTS ACROSS THE COUNTRY AMONG OTHER THINGS THE THREAT OF LITIGATION AGAINST DISCIPLINARY PANEL MEMBERS IS DISCOURAGING FACULTY MEMBERS FROM PARTICIPATING AS GREGORY MAGGS A LAW PROFESSOR AT GEORGE WASHINGTON UNIVERSITY IN WASHINGTON PUTS IT SITTING ON A DISCIPLINE COMMITTEE SOUNDS LIKE AN INVITATION TO A LAWSUIT ADMISSIONS OFFICERS FIND THEMSELVES INTERROGATED BY PARENTS ABOUT CAMPUS SAFETY AND SCHOOL POLICY TOWARD SEXUAL BEHAVIOR CAMPUS TURMOIL OVER DISCIPLINARY DECISIONS SUCH AS THOSE AT VALPARAISO CAN DRAW UNWANTED PUBLICITY AND CREATE MISPERCEPTIONS ABOUT THE INCIDENCE OF SEXUAL ASSAULT AT A SCHOOL SOME ADMINISTRATORS AND FACULTY MEMBERS BELIEVE THE LESSON OF SUCH TRAVAILS IS THAT COLLEGES SHOULD GET OUT OF THE DATERAPE ADJUDICATION BUSINESS ALTOGETHER RAPE IS A CRIME IT'S NOT SIMPLY A BREACH OF UNIVERSITY POLICY SAYS BETTY DEBERG A VALPARAISO THEOLOGY PROFESSOR USING CAMPUS HEARINGS MAKES IT SEEM LIKE A FRATERNITY PRANK OTHERS ADD THAT PEOPLE WHO ARE ACCUSED OF AS SERIOUS A CRIME AS RAPE DESERVE EXTENSIVE CONSTITUTIONAL PROTECTIONS THAT ONLY COURTS CAN PROVIDE BUT COLLEGES ARE IN A BIND JUST AS RESOLVING ASSAULT ALLEGATIONS CAN PROMPT LAWSUITS SO CAN TURNING THEM AWAY IN 1991 FOR EXAMPLE FOUR WOMEN STUDENTS SUED CARLETON COLLEGE IN NORTHFIELD MINN CLAIMING THE SCHOOL KNEW THAT CERTAIN MEN HAD A HISTORY OF SEXUAL ABUSE AND DID NOTHING TO PREVENT THEIR ATTACKING AGAIN MOVE ONE WAY YOU'RE THREATENED BY A LAWSUIT FROM ONE SIDE SAYS PRINCETON'S MR WRIGHT MOVE THE OTHER WAY YOU'RE THREATENED FROM THE OTHER IN ADDITION CAMPUS HEARINGS MAY BE THE ONLY HOPE OF REDRESS FOR MANY WOMEN PROVING IN COURT THAT A RAPE OCCURRED IS ALMOST IMPOSSIBLE WOMEN'S ADVOCATES SAY WHEN THE VICTIM AND ASSAILANT ARE ACQUAINTANCES IT IS THIS WHIRLWIND OF COMPETING PRESSURES THAT IS CAUSING HEADACHES FOR ADMINISTRATORS SUCH AS VALPARAISO'S PRESIDENT MR HARRE HE DECLINES TO SAY MUCH ABOUT THE SCHOOL'S PREDICAMENT CITING THE PENDING LAWSUIT AT THIS POINT THE UNIVERSITY IS AT RISK HE POINTS OUT HE STEPS OVER TO HIS OFFICE LIBRARY AND OPENS A BOOK TO A CHART LISTING 15 DIFFERENT LEGAL CLAIMS THAT CAN RESULT FROM CAMPUS SEXUAL ASSAULTS YOU'RE CAUGHT IN ALL SORTS OF POSSIBILITIES HE SAYS IN FEBRUARY VALPARAISO BROUGHT IN A SEXUALASSAULT EXPERT FROM BROWN UNIVERSITY IN PROVIDENCE RI WHO RECOMMENDED A VARIETY OF NEW ASSAULT PROGRAMS INCLUDING CHANGES IN THE DISCIPLINARY PROCESS TO HELP PROTECT IT FROM LAWSUITS STUDENTASSAULT COUNSELORS SAY THE ADMINISTRATION ALSO HAS BEEN MORE CLOSELY SUPERVISING THEIR WORK SUCH CAUTION MAY HELP AVOID FUTURE LEGAL PROBLEMS BUT PREDICTABLY IT ALSO HAS OPENED VALPARAISO TO CHARGES OF SHIRKING ITS DUTIES IN THE FIGHT AGAINST DATE RAPE EVEN CAMPUS ACTIVISTS RARELY CHARITABLE TOWARD ADMINISTRATORS SYMPATHIZE WITH VALPARAISO'S PLIGHT THIS IS A SCHOOL THAT'S REALLY TRYING SAYS MS LEE THE STUDENTASSAULT COUNSELOR AND THEY GOT PUNISHED FOR IT 9404120068 940412 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS APRIL 1225 THE METROPOLITAN MUSEUM'S FIRST PERMANENT GALLERIES DEDICATED TO THE DISPLAY OF THE ARTS OF SOUTH AND SOUTHEAST ASIA OPEN HERE TOMORROW A LARGE LONG STRING OF 18 ROOMS HOLD MORE THAN 1300 WORKS FROM INDIA TO INDONESIA AND POINTS IN BETWEEN FEATURING MORE THAN 80 OBJECTS BY THIS FINNISH ARTIST/GLASS DESIGNER THIS EXHIBIT FOCUSES ON THE DESIGNER'S SKILL AT ADAPTING FINNISH CRAFT TRADITIONS AND TECHNIQUES TO INDUSTRIAL PRODUCTION AMONG THE ITEMS ON DISPLAY ARE HIS ORCHID AN ELEGANTLY TAPERED VASE AND THE HIGHLY TEXTURED FINLANDIA LINE OF SCULPTURES AND VESSELS CREATED WITH CHARRED WOODEN MOLDS THIS NATIONAL TOURING SHOW INCLUDES MORE THAN 100 DECORATIVEARTS OBJECTS BY ARTISANS OF THE 19TH AND 20TH CENTURIES INCLUDED ARE WORKS FROM GUSTAV STICKLEY'S CRAFTSMAN WORKSHOPS ARCHITECTURAL MODELS AND DRAWINGS BY FRANK LLOYD WRIGHT AND GREENE & GREENE POTTERY BY ROOKWOOD NEWCOMB AND OVERBECK AND METALWORK BY CLEMENS FRIEDELL THE COPPER SHOP OF THE ROYCROFTERS AND TIFFANY THE EXHIBIT TRAVELS TO THE TACOMA WASH ART MUSEUM AND THE NELSONATKINS MUSEUM OF ART IN KANSAS CITY INDIANAPOLIS MUSEUM OF ART 1200 W 38TH ST THROUGH JUNE 12 CHILEAN SOPRANO VERONICA VILLARROEL SINGS THE ROLE OF VIOLETTA VALERY THE BEAUTIFUL COURTESAN WITH A TAINTED PAST WHO SEDUCES A YOUNGER MAN IN VERDI'S LA TRAVIATA TENOR MARTIN THOMPSON IS HER CALLOW LOVER ALFREDO WITH ITALIAN BARITONE PAOLO GAVANELLI AS GIORGIO GERMONT HARRY SILVERSTEIN DIRECTS THIS LYRIC OPERA OF CHICAGO PRODUCTION WITH SETS AND COSTUMES BY DESMOND HEELEY VJEKOSLAV SUTEJ CONDUCTS WORTHAM THEATER CENTER'S BROWN THEATER TEXAS STREET AT SMITH APRIL 15 17 20 23 26 AND 29 AND MAY 1 LOCALLY 713 227ARTS ELSEWHERE 1800828ARTS RICHARD STRAUSS'S ARIADNE AUF NAXOS OPENS HERE ON SATURDAY WITH DEBORAH VOIGT SINGING THE TITLE ROLE TERESA STRATAS AS THE COMPOSER WOLFGANG SCHMIDT AS BACCHUS AND TRACY DAHL KICKING UP HER HEELS AS ZERBINETTA JAMES LEVINE CONDUCTS LINCOLN CENTER BROADWAY AT 67TH STREET ALSO APRIL 21 AND 23 CARLO BERGONZI PERFORMS IN AN OFFICIAL AMERICAN FAREWELL CONCERT ON SUNDAY THE CHUBBY LEGEND WILL GIVE NEW WORLD FANS A LAST TASTE OF HIS INTERPRETATIONS OF VERDI BELLINI SCHUBERT ROSSINI AND TOSTI CARNEGIE HALL SEVENTH AVENUE AT 57TH STREET 212 2477800 THIS PROFESSIONAL SQUASH ASSOCIATION TOURNAMENT WILL FEATURE 40 OF THE 45 TOP PROFESSIONAL SQUASH PLAYERS INCLUDING DEFENDING CHAMPION JANSHER KHAN AND WORLD NO 2 BRETT MARTIN OF AUSTRALIA WORLD FINANCIAL CENTER WEST AND LIBERTY STREETS APRIL 1421 9404120067 940412 LEISURE & ARTS BOOKSHELF UNCONVENTIONAL WISDOM BY HEATHER MAC DONALD PUBLIC DEBATE ABOUT HOMELESSNESS HAS BEEN LONG ON RHETORIC SHORT ON FACTS FROM THE WILDLY INFLATED NUMBERS OF THE HOMELESS CIRCULATED BY ADVOCATES TO THE UNFOUNDED CHARGE THAT CUTS IN THE FEDERAL HOUSING PROGRAMS PUSHED PEOPLE ONTO THE STREETS EXAGGERATION AND DISTORTION HAVE RULED THE DAY IN THE HOMELESS HARVARD UNIVERSITY PRESS 192 PAGES 1795 CHRISTOPHER JENCKS PROFESSOR OF SOCIOLOGY AT NORTHWESTERN UNIVERSITY SUBJECTS THE VARIOUS EXPLANATIONS OF HOMELESSNESS TO RIGOROUS ANALYSIS MUCH CONVENTIONAL WISDOM WITHERS UNDER HIS SCRUTINY MOST SEVERELY DAMAGED IS THE UBIQUITOUS CLAIM THAT HOMELESSNESS RESULTED FROM CHANGES IN THE HOUSING MARKET MR JENCKS WEAVES HIS WAY THROUGH A MASS OF ECONOMIC DATA TO SHOW THAT THE ALLEGED SHORTAGE OF AFFORDABLE HOUSING HAS BEEN EITHER OVERSTATED OR STATED IN A MISLEADING FASHION IF LOWQUALITY LOWRENT UNITS WERE IN SHORT SUPPLY HE ARGUES THEY SHOULD HAVE A LOW VACANCY RATE BUT VACANCY RATES WERE SLIGHTLY HIGHER IN UNSUBSIDIZED LOWRENT UNITS THAN IN MORE EXPENSIVE UNITS THROUGHOUT THE 1980S LIKEWISE MR JENCKS SHOWS THAT THE MUCHDECRIED DESTRUCTION OF SINGLEROOMOCCUPANCY HOTELS SROS OCCURRED AS A RESULT OF DECLINING DEMAND DURING THE '60S AND '70S THE RAZING OF SKID ROW DID NOT THEREFORE CAUSE HOMELESSNESS A DECADE LATER BY THE TIME DEMAND DID RISE IN THE '80S HOWEVER STRINGENT NEW BUILDING CODES INTRODUCED BY PROGRESSIVE REFORMERS PREVENTED SRO RECONSTRUCTION FINALLY MR JENCKS DEMOLISHES THE CHARGE THAT FEDERAL HOUSING PROGRAMS SUFFERED DRACONIAN CUTS DURING THE REAGANBUSH YEARS ACTUAL OUTLAYS FOR LOWINCOME HOUSING DOUBLED BETWEEN 1980 AND 1992 TO 18 BILLION A RATE OF GROWTH HIGHER THAN THAT OF EITHER SOCIAL SECURITY OR DEFENSE THIS SITUATION POSED A DILEMMA FOR DEMOCRATS HAD THEY TAKEN CREDIT FOR PRESERVING GOVERNMENT HOUSING PROGRAMS DURING A REPUBLICAN ADMINISTRATION THEY WOULD NO LONGER BE ABLE TO BLAME THE REPUBLICANS FOR HOMELESSNESS WORSE THEY WOULD BE VULNERABLE TO THE CHARGE THAT THE PERSISTENCE OF HOMELESSNESS SHOWS THAT SUCH PROGRAMS ARE ACTUALLY COUNTERPRODUCTIVE MR JENCKS DOES CONFIRM THAT UNTREATED MENTAL ILLNESS AND DRUG ADDICTION ARE CENTRAL FACTORS IN HOMELESSNESS HIS ANALYSIS OF THE DEINSTITUTIONALIZATION OF THE MENTALLY ILL IS PARTICULARLY ACUTE AS PRESENTED IN THE HOMELESS HOMELESSNESS IS NOT A SINGLE PHENOMENON BUT SEVERAL DIFFERENT PHENOMENA ARISING AT DIFFERENT TIMES FROM DIFFERENT CAUSES UNFORTUNATELY MR JENCKS CAN'T MAKE UP HIS MIND WHICH OF THOSE CAUSES ARE MOST SALIENT AT ONE POINT HE ANALYZES HOMELESSNESS ON A TEMPORAL AXIS ATTRIBUTING ITS RISE BEFORE 1984 TO INCREASED ECONOMIC VULNERABILITY AND AFTER 1984 WHEN THE ECONOMY BEGAN TO IMPROVE TO CRACK RISING RENTS WEAKENED FAMILY TIES AND THE INCREASED AVAILABILITY OF SHELTERS LATER HE ATTRIBUTES HOMELESSNESS AMONG SINGLE ADULTS TO DEINSTITUTIONALIZATION CRACK THE INCREASE IN LONGTERM JOBLESSNESS AND POLITICAL RESTRICTIONS ON THE RECREATION OF FLOPHOUSES THE BOOK LACKS AN OVERARCHING NARRATIVE THAT COULD TIE ITS DISCRETE ANALYSES TOGETHER INTERMITTENTLY MR JENCKS SPECULATES ABOUT HUMAN BEHAVIOR HE ARGUES FOR EXAMPLE THAT THE PREVALENCE OF SUBSTANCE ABUSE IS DUE TO AMERICANS' FAILURE TO PREPARE CHILDREN FOR COMPETITIVE FAILURE YET THE FAITH THAT INDIVIDUAL EFFORT CORRELATES WITH ECONOMIC SUCCESS WAS SURELY STRONGER EARLIER IN THE CENTURY WHEN SUBSTANCE ABUSE WAS FAR LESS OF A PROBLEM HE DISMISSES THE DECLINE OF THE WORK ETHIC AS AN EXPLANATION FOR LONGTERM JOBLESSNESS ON THE GROUND THAT EMPLOYMENT WAS HIGH DURING THE '60S WHEN THE WORK ETHIC WAS MOST LOUDLY CHALLENGED BUT THAT HARDLY PROVES THAT TODAY'S PERMANENTLY UNEMPLOYED HAVE A STRONG WORK ETHIC OR THAT THEY HAVE BEEN UNTOUCHED BY THE LONG ARM OF COUNTERCULTURAL IDEOLOGY MOST CONTROVERSIALLY MR JENCKS ATTRIBUTES RISING ILLEGITIMACY AMONG POORLY EDUCATED COUPLES IN PART TO THE LACK OF OPPORTUNITY FOR MEN TO ENJOY THE PSYCHOLOGICAL BENEFITS OF BEING THEIR FAMILY'S SOLE BREADWINNER GIVEN THE CULTURE OF IRRESPONSIBILITY THAT IS FUELING UNDERCLASS ILLEGITIMACY ESPECIALLY AMONG TEENS TO IMPUTE TO PHANTOM FATHERS A THWARTED DESIRE TO PROVIDE FOR THEIR CHILDREN SEEMS FANCIFUL AT BEST WHEN MR JENCKS TURNS TO SOLUTIONS TO HOMELESSNESS HOWEVER HIS THINKING IS GUIDED LARGELY BY PRAGMATISM ALTHOUGH HE REJECTS HOUSING AS A PRIMARY CAUSE OF HOMELESSNESS HE WOULD PROVIDE IT AS A SOLUTION IT IS EASIER TO HOUSE SOMEONE HE ARGUES THAN TO CHANGE HIS CHARACTER UNLIKE MOST ADVOCATES HOWEVER HE PROPOSES INSERTING CUBICLE LODGINGS SMALL WINDOWLESS ROOMS FOR SINGLE ADULTS IN FORMER SHELTERS AND ABANDONED BUILDINGS OUTSIDE OF RESIDENTIAL AREAS THE CURRENT RAGE FOR BUILDING UPSCALE LODGINGS HE WARNS WILL BANKRUPT THE SYSTEM LONG BEFORE IT PROVIDES UNIVERSAL SHELTER WHEN HE TURNS TO THE MENTALLY ILL HE CALLS FOR RENT VOUCHERS GREATER INVESTMENT IN COMMUNITY CARE AND A STRENGTHENED POWER OF INVOLUNTARY COMMITMENT MR JENCKS'S SOLUTIONS SIDESTEP MANY QUESTIONS ABOUT PERSONAL RESPONSIBILITY ESPECIALLY REGARDING GOVERNMENT SUPPORT OF ILLEGITIMACY HIS ASSUMPTION THAT GOVERNMENT OWES EVERYONE SHELTER IS ALSO HIGHLY DEBATABLE BUT MR JENCKS'S THINKING IS GUIDED BY A ZEAL FOR TRUTH THAT HAS BEEN SADLY LACKING IN HOMELESSNESS POLICY OVER THE PAST DECADE MS MAC DONALD IS A CONTRIBUTING EDITOR AT CITY JOURNAL IN NEW YORK 9404120066 940412 POLITICS & POLICY CLINTONS PAY BACK TAXES AND INTEREST OF 14615 RELATED TO 1980 CAPITAL GAIN BY MICHAEL K FRISBY AND SCOTT KILMAN STAFF REPORTERS OF THE WALL STREET JOURNAL PRESIDENT AND HILLARY RODHAM CLINTON PAID 14615 IN BACK FEDERAL AND STATE TAXES AND INTEREST AFTER FAILING TO REPORT A 6498 CAPITAL GAIN IN THE FAMILY'S 1980 RETURNS DAVID KENDALL THE PRESIDENT'S PERSONAL ATTORNEY SAID THE CLINTONS WEREN'T REQUIRED TO PAY BECAUSE THE STATUTE OF LIMITATIONS HAD EXPIRED BUT MADE THE PAYMENTS VOLUNTARILY MR KENDALL SAID THE CAPITAL GAIN RESULTED FROM COMMODITIES TRADING THAT MRS CLINTON DID WITH STEPHENS INC WHEN THE CLINTONS FILED THEIR TAXES THEY DIDN'T HAVE A STATEMENT FROM ONE OF THE BROKERAGE FIRMS THAT STEPHENS HAD USED FOR THE TRADES THE 6498 CAPITAL GAIN MADE ON THE ACCOUNT WAS OVERLOOKED OFFICIALS SAID AT THE END OF MARCH WHEN THE WHITE HOUSE RELEASED RECORDS OF MRS CLINTON'S COMMODITIES TRADING IT SAID THAT THE TRADING IN THE STEPHENS ACCOUNT HAD RESULTED IN A LOSS OF ABOUT 1000 MR KENDALL NOTED THAT THREE OF THE PAST FIVE PRESIDENTS HAVE BEEN REQUIRED TO PAY BACK TAXES TO THE INTERNAL REVENUE SERVICE THE CLINTONS HAVE REACHED BACK 14 YEARS TO A TIME LONG CLOSED BY THE IRS AND AFTER A CAREFUL INVESTIGATION HAVE MADE THE DETERMINATION THEMSELVES TO PAY NOT ONLY THE TAX BUT ALSO INTEREST FOR THAT ENTIRE PERIOD IN AN AMOUNT THAT DWARFS THE TAX PAID THE CLINTONS PAID 3315 IN FEDERAL TAXES PLUS 10134 IN INTEREST AS WELL AS 514 IN STATE TAXES AND 652 IN INTEREST MR KENDALL ALSO DISCLOSED THAT THE CLINTONS' 1979 TAX RETURNS HAD BEEN AUDITED BY THE IRS BUT THE AGENCY CONCLUDED THEIR COMMODITIES TRADING AND INTEREST DEDUCTIONS WERE ACCURATELY REPORTED THE WHITE HOUSE ASKED THAT MRS CLINTON'S DAILY TRADING RECORDS BE REVIEWED BY LEO MELAMED PERHAPS CHICAGO'S BESTKNOWN FUTURES TRADER WHO PRONOUNCED THE AFFAIR A TEMPEST IN A TEAPOT NOTHING IN THESE RECORDS APPEARS TO REFLECT ANY TRADING VIOLATIONS ON THE PART OF MRS CLINTON BUT MR MELAMED ACKNOWLEDGED IN AN INTERVIEW YESTERDAY THAT THE WHITE HOUSE HADN'T PROVIDED HIM WITH THE RECORDS OUTLINING MRS CLINTON'S FIRST TRADE AT REFCO INC WHICH IS THE ONE THAT HAS MOST ASTONISHED OTHER TRADERS THE FIRST DAY OF TRADING WASN'T AVAILABLE SAID MR MELAMED BUT WHO KEEPS RECORDS THAT ARE 15 YEARS OLD OTHER TRADERS HAVE CALCULATED THAT IF MRS CLINTON BEGAN IN CATTLE FUTURES SHE WOULD HAVE NEEDED TO HANDLE SEVERAL CONTRACTS IN ORDER TO NET SO MUCH SO QUICKLY AT THE TIME THE CHICAGO MERCANTILE EXCHANGE REQUIRED FIRMS TO KEEP AT LEAST 900 IN A MARGIN ACCOUNT TO CONTROL JUST ONE CONTRACT MOST FIRMS REQUIRED THE SAME OF THEIR CUSTOMERS THE EXCEPTION WAS FOR TRADES THAT BEGAN AND ENDED DURING THE DAY BUT IT WASN'T CLEAR FROM THE MONTHLY RECORDS WHETHER MRS CLINTON WAS DAY TRADING AN ACTIVITY UNUSUAL FOR A NOVICE TO ATTEMPT LET ALONE GET RIGHT MANY SPECULATORS ALLOW THEIR BROKERS TO DO THEIR TRADING FOR THEM BUT MR MELAMED WHO SERVED UNTIL 1991 AS CHAIRMAN OF THE EXECUTIVE COMMITTEE AT THE CHICAGO MERC SAID HE DIDN'T FIND ANY RECORD OF MRS CLINTON'S GIVING HER BROKER AUTHORITY TO DO SOCALLED DISCRETIONARY TRADING MR MELAMED SAID THE DAILY TRADING RECORDS HE DID SEE DISCLOSED THAT MRS CLINTON'S MARGIN ACCOUNT WAS OCCASIONALLY THIN AND EVEN INSUFFICIENT FOR HER LEVEL OF TRADING THAT DIDN'T PUT HER IN VIOLATION OF ANY RULES OF THE EXCHANGE WHICH REGULATES ONLY FIRMS AND NOT THEIR CUSTOMERS ON SOME OF THE BUSIEST DAYS MRS CLINTON HAD A COMMODITYFUTURES POSITION VALUED AT MORE THAN 1 MILLION ACCORDING TO THE DAILY RECORDS HOWEVER ACCORDING TO MR MELAMED MRS CLINTON IS PROBABLY ONE OF HUNDREDS OF REFCO CUSTOMERS WHOSE TRADING PRACTICES FELL OUTSIDE THE INDUSTRY NORM AT THE TIME A REFCO SPOKESMAN HAS SAID THAT NOBODY AT THE FIRM REMEMBERS ITS POLICY BACK THEN BUT THE MERC FINED REFCO 250000 IN 1979 FOR MARGIN VIOLATIONS THE FIRM NEITHER ADMITTED NOR DENIED THE EXCHANGE'S ALLEGATIONS MR MELAMED SAID THE RECORDS HE SCRUTINIZED WERE CLEAR OF ANY SIGN THAT MRS CLINTON HAD WINNING TRADES IMPROPERLY PARKED IN HER ACCOUNT ACCORDING TO MR MELAMED THE RECORDS HE SAW SHOWED THAT MRS CLINTON MOSTLY FORMED POSITIONS IN THE MARKET THAT LASTED MORE THAN ONE DAY WHICH HE SAID MAKES THE POSSIBILITY OF IMPROPER ALLOCATION UNLIKELY OTHER COMMODITY EXPERTS HAVE SAID THAT THE FACT TRADES ARE HELD OVERNIGHT ISN'T CONCLUSIVE PROOF 9404120065 940412 EDUCATION TO BOOST IQS AID IS NEEDED IN FIRST 3 YEARS BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL NEW RESEARCH ON BRAIN DEVELOPMENT SUGGESTS THAT ANY ATTEMPT TO MAXIMIZE INTELLECTUAL GROWTH MUST BEGIN DURING THE FIRST THREE YEARS OF LIFE MUCH EARLIER THAN PREVIOUSLY BELIEVED SCIENTISTS HAVE DISCOVERED THAT A CHILD'S ENVIRONMENT INFLUENCES THE NUMBER OF BRAIN CELLS THE CHILD KEEPS AND THE CONNECTIONS BETWEEN THEM ACCORDING TO A REPORT ISSUED TODAY BY THE CARNEGIE CORP OF NEW YORK THE FINDINGS ARE PROMPTING THE NONPROFIT CARNEGIE FOUNDATION AS WELL AS SOME CHILDDEVELOPMENT EXPERTS TO CALL ON CONGRESS TO EXPAND FAMILYLEAVE RIGHTS IMPROVE THE TRAINING OF DAYCARE WORKERS AND EXTEND THE HEAD START PROGRAM FOR HIGHRISK YOUNGSTERS TO CHILDREN UNDER AGE THREE BY ENSURING A GOOD START IN LIFE WE HAVE MORE OPPORTUNITY TO PROMOTE LEARNING AND PREVENT DAMAGE THAN WE EVER IMAGINED THE CARNEGIE REPORT SAYS SCIENTISTS HAVE KNOWN FOR DECADES THAT ENVIRONMENT AFFECTS BEHAVIOR BUT ONLY IN RECENT YEARS HAVE THEY STARTED TO UNDERSTAND THAT THE BRAIN IS LITERALLY SHAPED BY EXPERIENCE THEY NOW BELIEVE AN INFANT'S BRAIN DEVELOPS MORE QUICKLY IN THE FIRST YEAR THAN THEY HAD EXPECTED AND THAT SENSORY EXPERIENCES CAN AFFECT WHICH BRAIN CELLS AND CELL CONNECTIONS LIVE OR DIE BABIES ARE BORN WITH BILLIONS OF BRAIN CELLS MANY MORE THAN THEY HAVE AT AGE THREE AND NEARLY TWICE AS MANY AS THEY HAVE AS ADULTS RECENT RESEARCH SHOWS DURING THE FIRST MONTHS OF LIFE CONNECTIONS BETWEEN THESE CELLS CALLED SYNAPSES MULTIPLY RAPIDLY TO 1000 TRILLION FORMING THE STRUCTURES THAT ALLOW LEARNING TO OCCUR NATURE ACTS LIKE A SCULPTOR THROUGHOUT CHILDHOOD SCIENTISTS SAY CHISELING AWAY THE EXCESSIVE CELLS AND SYNAPSES SO THE BRAIN CAN FUNCTION MORE EFFICIENTLY IN ADULTHOOD IN PART IT DECIDES WHICH SYNAPSES ARE SUPERFLUOUS BY DETERMINING WHICH ONES NEVER GET USED THAT'S WHY PEOPLE WHO TAKE PIANO LESSONS BEFORE AGE NINE FIND IT EASIER TO PLAY PIANO AS ADULTS THAN THOSE WHO DIDN'T START STUDYING THE INSTRUMENT UNTIL LATER IN LIFE SAYS HARRY CHUGANI A NEUROSCIENTIST AT THE UNIVERSITY OF MICHIGAN CHILDREN'S HOSPITAL BY ENROLLING A CHILD IN MUSIC LESSONS YOU'VE CHANGED THE FINE ANATOMY OF THE BRAIN DR CHUGANI SAYS ANIMAL STUDIES SHOW THAT BRAINS DEVELOP DIFFERENTLY IN MORE ENRICHED ENVIRONMENTS WHEN RATS SPEND THEIR LIVES BEFORE SEXUAL MATURITY IN CAGES FILLED WITH TOYS THEY DEVELOP MORE SYNAPSES THAN RATS IN EMPTY CAGES SAYS WILLIAM GREENOUGH A NEUROBIOLOGIST WITH THE BECKMAN INSTITUTE AT THE UNIVERSITY OF ILLINOIS THESE RATS HAVE 80 MORE CAPILLARY VOLUME PER BRAIN CELL THAT IS BIGGER CAPILLARIES AND MORE OF THEM ALLOWING THE BRAIN TO RECEIVE A BETTER SUPPLY OF NUTRIENTS AND OXYGEN MEANWHILE THE NEUROGLIA WHICH HELP KEEP THE NERVOUS SYSTEM STABLE SHOW INCREASES IN METABOLIC RATES AND SIZE IN THESE RATS NEGATIVE EXPERIENCES CAN HAVE LASTING EFFECTS SCIENTISTS SAY BECAUSE THEY CAN ALTER THE ORGANIZATION OF THE BRAIN CHILDREN RAISED IN POOR ENVIRONMENTS CAN DISPLAY COGNITIVE DEFICITS BY 18 MONTHS THAT MAY BE IRREVERSIBLE STUDIES SHOW SEVERE STRESS IN MONKEYS AND RATS MEANWHILE HAS CREATED SERIOUS PROBLEMS TOO RESULTING IN HORMONAL CHANGES THAT CAUSE THE DEATH OF BRAIN CELLS INVOLVED IN LEARNING AND MEMORY I DON'T THINK I'D GET PARANOID ABOUT THIS BUT I WOULD NOT TOTALLY DISMISS THE IDEA THAT STRESS COULD HAVE AN IMPACT SAYS BRUCE MCEWEN A NEUROSCIENTIST AT ROCKEFELLER UNIVERSITY WHO HAS STUDIED THE EFFECT OF STRESS ON THE BRAIN CHILD EXPERTS SAY THE NEW RESEARCH SHOULDN'T MAKE PARENTS OBSESSIVE ABOUT STIMULATING CERTAIN PORTIONS OF THEIR CHILDREN'S BRAINS BUT SIMPLY MAKE THEM MORE AWARE OF THE IMPORTANCE OF THE EARLY YEARS OF LIFE SOME PARENTS THINK A NEWBORN IS KIND OF A BLOB SAYS EDWARD ZIGLER DIRECTOR OF THE YALE UNIVERSITY BUSH CENTER IN CHILD DEVELOPMENT AND SOCIAL POLICY AND A FOUNDER OF HEAD START STIMULATING A CHILD PROPERLY IS SIMPLE HE SAYS BUT IT DOES TAKE TIME PUTTING CHILDREN ON YOUR LAP LETTING THEM TURN PAGES WHEN YOU READ TO THEM NORMAL EVERYDAY INTERACTIONS DROP THE NONSENSE ABOUT QUALITY TIME HE SAYS IT'S QUANTITY TIME THAT CHILDREN NEED MR ZIGLER THINKS IT'S BEST FOR CHILDREN TO STAY HOME WITH A PARENT FOR THE FIRST SIX MONTHS OF LIFE GIVEN THE CHILD'S DEVELOPMENTAL CHANGES AND FAMILY ADJUSTMENTS TO THE NEWBORN THAT'S WHY HE IS A STRONG ADVOCATE OF EXPANDING FAMILY LEAVE TO SIX MONTHS UP FROM THE CURRENT REQUIREMENT THAT BUSINESSES WITH 50 OR MORE EMPLOYEES ALLOW WORKERS TO TAKE UP TO 12 WEEKS OF UNPAID LEAVE THE CARNEGIE CORP'S TASK FORCE ON CHILDREN WHICH MR ZIGLER SERVES ON ALSO WANTS BUSINESSES TO PARTIALLY PAY PARENTS ON LEAVE SINCE FEW FAMILIES CAN AFFORD TO LOSE MONTHS OF INCOME CHILDREN WON'T BE DAMAGED BY HIGHQUALITY DAY CARE EXPERTS SAY TODDLERS WHO RECEIVE GOOD DAY CARE WILL FARE AS WELL AS IF THEY STAYED HOME ALL THE TIME WITH A PARENT STUDIES SHOW BUT THE PROBLEM IS THAT GOOD DAY CARE IS HARD TO FIND CHILD CARE IN AMERICA IS BAD SAYS MR ZIGLER CITING THE FAMILIES AND WORK INSTITUTE'S RECENT REPORT THAT RATED ONLY 9 OF FAMILY CHILD CARE AND RELATIVE CARE ARRANGEMENTS AS GOOD QUALITY THE INSTITUTE CONCLUDED THAT QUALITY COULD BE IMPROVED BY TRAINING DAYCARE WORKERS A RECOMMENDATION THE CARNEGIE CORP WANTS THE GOVERNMENT TO ENCOURAGE THE BRAIN RESEARCH HAS FARREACHING IMPLICATIONS FOR UNDERPRIVILEGED CHILDREN WHO COULD BE SPARED LIVES OF MENTAL RETARDATION WITH EARLY INTERVENTION WHEN EXTREMELY HIGHRISK CHILDREN ENTERED EDUCATIONAL PROGRAMS BY SIX MONTHS OF AGE THEIR INCIDENCE OF MENTAL RETARDATION WAS CUT 80 SAYS CRAIG RAMEY A DEVELOPMENTAL PSYCHOLOGIST AT THE UNIVERSITY OF ALABAMA AT BIRMINGHAM BY AGE THREE THESE CHILDREN HAD IQS THAT WERE 15 TO 20 POINTS HIGHER THAN CHILDREN OF SIMILAR BACKGROUNDS WHO HAD NOT ATTENDED PROGRAMS MR RAMEY SAYS AT AGE 12 THESE CHILDREN STILL FUNCTIONED AT A HIGHER LEVEL AND AT AGE 15 THE EFFECTS WERE EVEN STRONGER SUGGESTING THAT EARLY EDUCATIONAL PROGRAMS CAN HAVE LONGLASTING AND CUMULATIVE EFFECTS CHILDREN WHO ENTER PRESCHOOL AT AGE THREE ALSO SHOW IMPROVEMENT HE SAYS BUT THEY NEVER APPEAR TO FULLY OVERCOME WHAT THEY LOST IN THE FIRST THREE YEARS SUCH EVIDENCE HAS PERSUADED DEMOCRATIC SEN EDWARD KENNEDY OF MASSACHUSETTS TO SEEK TO EXPAND THE HEAD START PROGRAM TO INCLUDE CHILDREN FROM INFANCY TO AGE THREE THE CURRENT STARTING AGE IS THREE TO FIVE THE EXPANSION IS EXPECTED TO BE INCLUDED IN HEAD START LEGISLATION SCHEDULED TO BE WRITTEN WEDNESDAY IN THE SENATE EDUCATION AND LABOR COMMITTEE WHICH SEN KENNEDY HEADS THERE WILL BE 120 MILLION SET ASIDE FOR THESE NEW HEAD STARTS IN THE NEXT FISCAL YEAR AND 300 MILLION BY FISCAL 1998 THE EVIDENCE IS NOW SO CONVINCING THAT HIGHRISK CHILDREN CAN BENEFIT FROM THESE INTERVENTIONS THAT WE HAVE TO JUSTIFY TO OURSELVES WHY WE WOULDN'T PROVIDE IT MR RAMEY SAYS WHAT NEW SCIENTIFIC RESEARCH SHOWS BRAIN DEVELOPMENT BEFORE AGE ONE IS MORE RAPID AND EXTENSIVE THAN PREVIOUSLY REALIZED BRAIN DEVELOPMENT IS MUCH MORE VULNERABLE TO ENVIRONMENTAL INFLUENCE THAN SUSPECTED THE INFLUENCE OF EARLY ENVIRONMENT ON BRAIN DEVELOPMENT IS LONG LASTING ENVIRONMENT AFFECTS THE NUMBER OF BRAIN CELLS CONNECTIONS AMONG THEM AND THE WAY CONNECTIONS ARE WIRED EARLY STRESS HAS A NEGATIVE IMPACT ON BRAIN FUNCTION 9404120064 940412 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY MARCH 30 1994 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9404120063 940412 ROCHE SALES ROSE IN 1ST QUARTER ZURICH ROCHE HOLDING LTD A SWISS DRUGS GROUP ANNOUNCED YESTERDAY THAT ITS GROUP SALES ROSE 62 IN THE FIRST QUARTER TO 373 BILLION FRANCS 258 BILLION FROM 351 BILLION FRANCS IN THE SAME PERIOD OF 1993 ROCHE SAID FIRST QUARTER SALES IN THE DRUG DIVISION ROSE 10 FRAGRANCES AND FLAVORS SAW SALES RISE 9 WHILE THE VITAMINS AND FINE CHEMICALS SECTOR ROSE 3 DIAGNOSTICS SALES FELL 5 9404120062 940412 MONDAY'S MARKETS STOCKS END DAY MIXED BONDS GAIN TRADERS ARE CAUTIOUS AS THEY AWAIT DATA RELATED TO INFLATION BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED IN CAUTIOUS TRADING AHEAD OF SEVERAL INFLATION REPORTS THIS WEEK BOND PRICES ROSE AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1457 POINTS TO 368883 IT WAS UP MORE THAN 26 POINTS EARLY IN THE SESSION TEMPORARILY PIERCING THE 3700 LEVEL BEFORE RETREATING A BIT STANDARD & POOR'S 500STOCK INDEX GAINED 277 TO 44987 BUT THE NASDAQ COMPOSITE INDEX INCHED DOWN 060 TO 74811 TRADING VOLUME WAS RELATIVELY LIGHT AS INVESTORS AWAITED TODAY'S RELEASE OF PRODUCER PRICE DATA FOR MARCH THOSE FIGURES WILL BE FOLLOWED TOMORROW BY A REPORT ON MARCH CONSUMER PRICES WE HAVE A DOUBLE DOSE OF INFLATION NUMBERS COMING THIS WEEK BUT THE MARKET WAS EMBOLDENED A BIT BY A SENSE THE NUMBERS WON'T BE SO BAD SAID ALAN R ACKERMAN A STRATEGIST AT REICH & CO WEAKNESS IN PRECIOUSMETALS AND MINING STOCKS ALSO HINTED AT A SPATE OF POSITIVE INFLATION NEWS ANALYSTS SAID BANK STOCKS LED THE MARKET LARGELY BECAUSE OF EXPECTATIONS OF COMING BANK MERGERS THESE STOCKS GOT A BOOST FROM A WALL STREET JOURNAL ARTICLE ABOUT A POSSIBLE MERGER OF FLEET FINANCIAL AND BANK OF NEW YORK ANALYSTS SAID BANK STOCKS ALSO WERE DUE FOR A REBOUND AFTER SLUMPING IN RECENT WEEKS STABLE INTEREST RATES AND AN IMPROVING OUTLOOK FOR BANKS' LOAN DEMAND AND EARNINGS AIDED THE RALLY BOND TRADERS ALSO WERE CAUTIOUS PRIOR TO THE COMING INFLATION NEWS KNOCKING PRICES LOWER EARLY IN THE DAY THEN DRIVING THEM HIGHER LATER WE HAVE A DECENT SHOT AT SOME KIND OF RALLY IN THE BOND MARKET AS LONG AS WE DON'T GET ANY NASTY SURPRISES IN THE INFLATION NUMBERS SAID WALTER C REVIS MARKET ANALYST AT HAMILTON INVESTMENTS IN CHICAGO IN THE CURRENCY MARKETS THE DOLLAR TUMBLED AGAINST THE YEN AMID CONCERNS THE US WILL BEGIN PUSHING FOR A STRONGER YEN TO FORCE JAPAN TO BE LESS PROTECTIONIST AND STIMULATE ITS ECONOMY RICHARD WITTEN PARTNER IN CHARGE OF FOREIGNEXCHANGE SALES AT GOLDMAN SACHS SAID JAPAN'S POLITICAL TURMOIL AFTER THE RESIGNATION OF PRIME MINISTER MORIHIRO HOSOKAWA PROBABLY WILL FORESTALL ANY MARKETOPENING ACTION BY THE JAPANESE IN THAT ENVIRONMENT THERE ISN'T A TREMENDOUS AMOUNT OF RISK IN BEING SHORT DOLLARS LONG YEN HE SAID WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 111 TO 11355 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2431 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1168 ISSUES ROSE AND 1022 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED 1/4 POINT OR 250 FOR EACH 1000 FACE AMOUNT TO YIELD 723 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17120 MARKS AND 10345 YEN COMPARED WITH 17125 MARKS AND 10515 YEN FRIDAY 9404120061 940412 EPA ACTS TO SPEED TREATMENT OF SEWAGE OVERFLOWING IN RAINS WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY UNVEILED NEW PROCEDURES AIMED AT EXPEDITING TREATMENT OF SEWAGE THAT FLOWS INTO RIVERS LAKES AND STREAMS DURING HEAVY RAINS THE PLAN ADDRESSES COMBINED SEWER OVERFLOW A PROBLEM THAT OFTEN OCCURS DURING RAINSTORMS WHEN SEWER SYSTEMS CONNECTED TO STORMWATER DRAINS OVERFLOW AND EMPTY INTO WATERWAYS ALTHOUGH SUCH OVERFLOW IS ILLEGAL UNDER THE 1972 CLEAN WATER ACT THE EPA HAS BEEN VAGUE ABOUT HOW CITIES SHOULD DEAL WITH THE PROBLEM AND COURTS HAVE IMPOSED VARYING SOLUTIONS COMBINED SEWERS ARE FOUND IN 1100 COMMUNITIES AROUND THE NATION THE COST FOR CITIES TO ADDRESS COMBINED SEWER OVERFLOWS HAS BEEN ESTIMATED AT BETWEEN 100 BILLION AND 200 BILLION NATIONWIDE OVER THE LONG TERM BUT THE ADMINISTRATION SAYS ITS NEW PLAN WOULD COST CITIES ONLY 41 BILLION BECAUSE IT WOULD GIVE LOCALITIES MORE FLEXIBILITY UNDER THE NEW PROCEDURES CITIES MUST IMMEDIATELY ADOPT CERTAIN CONTROLS SUCH AS MAXIMIZING SEWAGE FLOW INTO TREATMENT PLANTS AND PROHIBITING COMBINED SEWER OVERFLOWS DURING DRY WEATHER THE EPA SAID HOWEVER THAT IT WON'T REQUIRE MANY CITIES TO PERFORM ELABORATE SECONDARY BIOLOGICAL TREATMENT OF SEWAGE OVERFLOW IN TREATMENT PLANTS PROVIDED SUCH OVERFLOWS OCCUR NO MORE THAN FOUR TIMES A YEAR AND PROVIDED CITIES PERFORM PRIMARY TREATMENT SUCH AS DISINFECTING THE WATER AND REMOVING SOLIDS ON 85 OF THE OVERFLOW BEFORE IT EMPTIES INTO WATERWAYS AN EARLIER DRAFT OF THE PROCEDURES WAS PROPOSED A YEAR AGO AND IS INCORPORATED INTO LEGISLATION TO REVISE THE CLEAN WATER ACT THAT LAST MONTH CLEARED THE SENATE ENVIRONMENT AND PUBLIC WORKS COMMITTEE BUT THE EPA CAN ADOPT THE NEW PROCEDURES WITHOUT LEGISLATION COMMITTEE CHAIRMAN SEN MAX BAUCUS D MONT SAID IN A STATEMENT THAT THE PLAN SHOWS HOW WE CAN ACHIEVE ENVIRONMENTAL PROGRESS IN AN ECONOMICALLY RESPONSIBLE WAY 9404120060 940412 SMALL STOCK FOCUS ISSUES FINISH FLAT AS BIG STOCKS RALLY AMID EARNINGSRELATED ENTHUSIASM BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK INTEREST RATESENSITIVE STOCKS STRENGTHENED BUT OTHERS IN THE SMALLCOMPANY SPHERE WERE LEFT OUT IN THE COLD AS LARGER ISSUES FIRMED ON EARNINGSRELATED OPTIMISM WALL STREET WAS ALSO FEELING GOOD ABOUT TWO PIECES OF INFLATION DATA DUE OUT THIS WEEK MARCH PRODUCER PRICES TODAY AND MARCH CONSUMER PRICES SET FOR RELEASE TOMORROW BOTH INDICATORS ARE EXPECTED TO SHOW THAT INFLATION REMAINS UNDER CONTROL BUT MARKET WATCHERS SAID SMALLSTOCK INVESTORS DIDN'T SHARE IN THE ENTHUSIASM THAT CARRIED THE DOW JONES INDUSTRIAL AVERAGE 1457 POINTS HIGHER YESTERDAY YESTERDAY'S RALLY WAS CONFINED MOSTLY TO BIG BLUE CHIP ISSUES WITH SMALLER STOCKS FINISHING ABOUT FLAT THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS EDGED UP 006 TO 25474 THE NASDAQ STOCK MARKET COMPOSITE INDEX EASED 060 TO 74811 BOTH MEASUREMENTS SPENT THE SESSION IN A VERY NARROW RANGE ADVANCING NASDAQ ISSUES RAN BEHIND DECLINERS 1496 TO 1663 ON VOLUME OF 238 MILLION SHARES COMPARED WITH 269 MILLION SHARES ON FRIDAY BONDS ENDED HIGHER AFTER EARLY WEAKNESS THE LONG BOND ROSE ABOUT 1/4 POINT DEPRESSING ITS YIELD TO 723 FINANCIAL STOCKS DREW SUSTENANCE FROM BONDS AND ALSO GOT A SHOT IN THE ARM FROM EXPECTATIONS THAT THE GROUP WILL SPORT IMPRESSIVE EARNINGS BANK STOCKS RELEASE PROFIT REPORTS FIRST PRIME BANCORP PHILADELPHIA ADVANCED 1 5/8 TO 21 5/8 PEOPLES BANCORP OF WORCESTER WORCESTER MASS IMPROVED 1 TO 48 3/4 AND INDEPENDENCE BANCORP PERKASIE PA TACKED ON 1 1/8 TO 38 BUT BUYING INTEREST DIDN'T HIT OTHER GROUPS IN EARNINGS NEWS SHAW GROUP DROPPED 4 1/8 TO 18 7/8 THE BATON ROUGE LA PIPINGSYSTEMS CONCERN REPORTED FISCAL SECONDQUARTER EARNINGS OF 22 CENTS A SHARE COMPARED WITH 17 CENTS A YEAR EARLIER BUT SALES FOR THE PERIOD DROPPED ABOUT 4 MILLION TO 273 MILLION WATKINSJOHNSON POPPED 2 HIGHER TO 29 AFTER SAYING IT EXPECTS A STRONG FINANCIAL PERFORMANCE THIS YEAR THE PALO ALTO CALIF ELECTRONICSYSTEMS CONCERN WHICH EARNED 18 CENTS A SHARE FOR 1993 TOLD SHAREHOLDERS SATURDAY THAT ORDERS ESPECIALLY FOR SEMICONDUCTOR EQUIPMENT ARE ABOVE EXPECTATIONS AND IT PROJECTS REVENUE FOR THE SEGMENT WILL GROW BY 50 THIS YEAR KEPTEL ROSE 1 TO 12 1/2 THE TINTON FALLS NJ NETWORKING CONCERN SAID ITS FISCAL SECONDQUARTER EARNINGS JUMPED TO 22 CENTS A SHARE FROM 16 CENTS A YEAR EARLIER ELSEWHERE IN THE TECHNOLOGY SECTOR ENCORE COMPUTER JUMPED 15/16 TO 4 3/16 CNBC FINANCIAL CORRESPONDENT DAN DORFMAN REPORTED THAT THE COMPANY IS BROKERAGE FIRM KENSINGTON WELLS'S NO 1 STOCK PICK FOR THE NEXT NINE TO 12 MONTHS ENCORE OF FORT LAUDERDALE FLA TOPPED THE NASDAQ MOST ACTIVES LIST WITH 86 MILLION SHARES UP FROM THE 212600 THAT CHANGE HANDS ON AVERAGE EACH DAY MEDIA VISION TECHNOLOGY A FREMONT CALIF MULTIMEDIA CONCERN SLIPPED 1 1/4 TO 7 3/8 ITS RIVAL CREATIVE TECHNOLOGY HAS SHRUNK ITS POPULAR SOUND BOARDS FOR PERSONAL COMPUTERS DOWN TO A MICROCHIP SOONER THAN EXPECTED THE WALL STREET JOURNAL REPORTED CREATIVE TECHNOLOGY FELL 1 TO 23 A RAYMOND JAMES & ASSOCIATES UPGRADE TO BUY FROM HOLD LIFTED ROBERDS A WEST CARROLLTON OHIO OPERATOR OF HOMEFURNISHING STORES 1 TO 9 1/2 THE BROKERAGE FIRM ALSO RAISED ITS 1994 AND 1995 EARNINGS ESTIMATES BASED ON ITS BELIEF THAT THE COMPANY'S FIRSTQUARTER SALES FIGURES WILL EXCEED ITS ORIGINAL EXPECTATIONS ALPHA 1 BIOMEDICALS SANK 2 TO 8 THE BETHESDA MD CONCERN SAID AN ARBITRATOR FOUND THAT ALPHA BREACHED ITS OBLIGATION UNDER A LICENSE AGREEMENT BY FAILING TO SUPPLY ON A TIMELY BASIS SCICLONE PHARMACEUTICALS WITH 200 GRAMS OF THYMOSIN ALPHA 1 IT ORDERED FOR DELIVERY IN DECEMBER SCICLONE SAN MATEO CALIF EDGED 1/2 HIGHER TO 17 1/2 HORACE MANN EDUCATORS LOST 1 1/8 TO 27 3/8 ON THE NEW YORK STOCK EXCHANGE LATE FRIDAY THE SPRINGFIELD ILL INSURER SAID IT EXPECTS FIRSTQUARTER EARNINGS WILL BE REDUCED BY 65 MILLION OR 20 CENTS A SHARE DUE TO CLAIMS FROM THE CALIFORNIA EARTHQUAKE SEVERE WINTER WEATHER AND A LATE MARCH SERIES OF TORNADOES ON THE MERGER FRONT FISCHER & PORTER JUMPED 2 TO 24 5/8 ON THE AMERICAN STOCK EXCHANGE THE WARMINSTER PA MAKER OF MEASUREMENT INSTRUMENTS SAID IT RECEIVED AN UNSOLICITED PROPOSAL FROM ELSAG BAILEY PROCESS AUTOMATION FOR AN ALLCASH MERGER AT 2425 A SHARE ON A FULLY DILUTED BASIS ELSAG BAILEY OF THE NETHERLANDS EASED 1/4 TO 22 1/4 THIS IS THE SLOWEST FULLDAY SESSION SINCE DEC 27 ACCORDING TO NASDAQ DATA THE EXTREMELY LIGHT VOLUME INDICATES PLAYERS' UNWILLINGNESS TO GET INVOLVED UNTIL THEY GET MORE OF A DIRECTION FROM EARNINGS THE ECONOMIC DATA AND INTEREST RATES SAID JOHN WOSCZYNA A MARKET STRATEGIST AT RONEY & CO PART OF THE CONTINUED RELUCTANCE IS RATERELATED AND PART OF IT IS THAT PORTFOLIOS ARE HURTING AFTER THE RECENT CORRECTION SAID MR WOSCZYNA THERE WAS NO REASON TO DO ANYTHING SAID JIM THOMAS VICE PRESIDENT OF EQUITY TRADING AT DAVENPORT & CO HE SAID THE LEVEL OF NERVOUSNESS THAT EXISTS MADE BUYERS SEEK THE SHELTER OF LARGER ISSUES YESTERDAY RATHER THAN THE VOLATILITY OF SMALLER STOCKS 9404120059 940412 INTERNATIONAL BRIEF NINE NETWORK AUSTRALIA LTD COMPANY TO BUY 15 STAKE IN OPTUS COMMUNICATIONS NINE NETWORK AUSTRALIA LTD A TELEVISION NETWORK CONTROLLED BY AUSTRALIAN INVESTOR KERRY PACKER AGREED TO BUY A 15 STAKE IN OPTUS COMMUNICATIONS PTY FOR 318 MILLION AUSTRALIAN DOLLARS US2312 MILLION OPTUS WHICH IS ESTABLISHING AUSTRALIA'S SECOND TELECOMMUNICATIONS CARRIER ALSO OPERATES COMMUNICATIONS SATELLITES OPTUS WILL ISSUE 265 MILLION NEW SHARES TO NINE NETWORK THE TV COMPANY WILL FINANCE THE INVESTMENT THROUGH BANKS CURRENT SHAREHOLDERS IN OPTUS ARE BELLSOUTH CORP OF ATLANTA AND CABLE & WIRELESS PLC OF BRITAIN EACH OF WHICH OWNS 245 THE BALANCE IS OWNED BY AUSTRALIAN COMPANIES MAYNE NICKLESS LTD AUSTRALIAN MUTUAL PROVIDENT SOCIETY NATIONAL MUTUAL LIFE ASSOCIATION OF AUSTRALASIA LTD AND AIDC LTD THE INVESTMENT BY NINE NETWORK INCREASES THE AUSTRALIAN SHAREHOLDING IN OPTUS TO MORE THAN 58 FROM 51 9404120058 940412 TEJAS POWER PLACES NOTES HOUSTON TEJAS POWER CORP SAID IT PRIVATELY PLACED 35 MILLION OF 733 UNSECURED SENIOR NOTES DUE MARCH 15 2004 THE NATURALGAS GATHERER AND MARKETER SAID THE NOTES WHICH WILL BEGIN PAYING SEMIANNUAL INTEREST SEPT 15 WERE PLACED WITH A GROUP OF INSTITUTIONAL INVESTORS TEJAS POWER SAID IT WILL USE THE PROCEEDS FOR PAYMENT OF ALL ITS OUTSTANDING CORPORATE BANK DEBT FOR ACQUISITIONS AND FOR GENERAL CORPORATE PURPOSES 9404120057 940412 INTERNATIONAL BRIEF CREDIT LYONNAIS PARTNER IS SOUGHT FOR CLIO A COMPUTERSERVICES ASSET CREDIT LYONNAIS CHAIRMAN JEAN PEYRELEVADE SAID THE STATECONTROLLED BANK IN PARIS IS LOOKING FOR A PARTNER FOR CLIO A HOLDING COMPANY THAT EMBRACES ITS COMPUTERSERVICES INTERESTS MR PEYRELEVADE SAID TO A MEETING OF FINANCIAL ANALYSTS THAT THE SELECTION OF THE PARTNER WOULD DEPEND ON THE PRICE OFFERED AND THE PARTNER'S WILLINGNESS TO WORK WITH LYONNAIS AS REPORTED CREDIT LYONNAIS PLANS TO SELL OFF AT LEAST 20 BILLION FRANCS 340 BILLION OF ASSETS OVER THE NEXT TWO YEARS AS PART OF A RESCUE PLAN AIMED AT BRINGING THE BANK BACK TO PROFITABILITY BY NEXT YEAR THE BANK TURNED IN A LOSS OF 69 BILLION FRANCS IN 1993 AND FORCED THE GOVERNMENT TO STEP IN TO BAIL IT OUT CLIO'S COMPUTER INTERESTS INCLUDE SLIGOSMARBEN A COMPANY THAT OFFERS COMPUTER SERVICES FOR THE BANKING SECTOR CCMX A COMPANY THAT PROVIDES SOLUTIONS FOR ACCOUNTING FIRMS AND SMALL BUSINESSES AND CONCEPT A MANAGEMENTSOFTWARE CONCERN 9404120056 940412 PACIFICARE UNIT'S NAME CHANGE MIAMI PACIFICARE HEALTH SYSTEMS INC SAID IT CHANGED THE NAME OF ITS ADVANTAGE HEALTH PLANS INC UNIT TO PACIFICARE OF FLORIDA THE COMPANY SAID PACIFICARE OF FLORIDA OPERATES IN DADE BROWARD PALM BEACH LEE GLADES AND HENDRY COUNTIES 9404120055 940412 REVIEW & OUTLOOK EDITORIAL BOMBING IN BOSNIA THE CLINTON ADMINISTRATION AND THE UNITED NATIONS REGAINED AT LEAST SOME OF THEIR LOST CREDIBILITY SUNDAY WITH AIR STRIKES AGAINST BOSNIAN SERB POSITIONS AROUND GORAZDE YET ONCE DESTROYED CREDIBILITY IS NOT EASILY REBUILT BY YESTERDAY MORNING SERB FORCES WERE BACK AT IT AGAIN SHELLING MUSLIM DEFENSES IN GORAZDE AND BY ONE REPORT NARROWLY MISSING THE BUILDING WHERE UN STAFF ARE SHELTERED SO YESTERDAY TWO MARINE CORPS FA18 GROUND ATTACK PLANES HIT THE SERBS AGAIN CERTAINLY THE CLINTON ADMINISTRATION SHOULD BE CONGRATULATED FOR FINALLY HARDENING ITS ATTITUDE TOWARD SERB AGGRESSION USING AIR STRIKES IN SUCH A LIMITED WAY AND IN THE ABSENCE OF A BROADER PLAN HOWEVER HAS LITTLE MORE EFFECT THAN A STUNGUN MORE SERIOUS MEASURES MOST LIKELY WILL BE NEEDED TO DETER THE SERBS FURTHER THE EVENTS LEADING UP TO SUNDAY'S AIR STRIKES SHOW THAT THE WEST'S RESPONSE TO THE WAR IN BOSNIA REMAINS AD HOC AND INCOHERENT FROM THE MOMENT THE SERBS DEFERRED TO A RUSSIAN AND USBROKERED WITHDRAWAL FROM SARAJEVO IN FEBRUARY THEY BEGAN STEALTHILY REDEPLOYING FORCES AROUND GORAZDE A MUSLIM ENCLAVE STRATEGICALLY POSITIONED CLOSE TO THE SERB BORDER BY MARCH 28 A CONFIDENTIAL UN REPORT LEAKED TO JOURNALISTS SAID SERB FORCES WERE PREPARING FOR A MASSIVE ATTACK NO DOUBT INTENDING TO TAKE GORAZDE BEFORE THE ARRIVAL OF SOME 800 UKRAINIAN PEACEKEEPERS PERHAPS THE SERBS WOULD HAVE THOUGHT TWICE ABOUT THE OFFENSIVE IF THE INTERNATIONAL COMMUNITY HAD REACTED IMMEDIATELY BUT THE UN WAS BUSY BUILDING ON THE SARAJEVO CEASEFIRE THE SERBS SEEM TO HAVE INTERPRETED THIS NEGLECT AS AN ALLCLEAR THE ARTILLERY BARRAGE STARTED TWO DAYS LATER AND APPROPRIATELY BY APRIL FOOL'S DAY THE SERBS HAD MOVED MORE THAN 50 TANKS INTO THE REGION BY APRIL 5 THE SERBS HAD BROKEN THROUGH WEAK BOSNIAN MUSLIM DEFENSES ON THREE SIDES LEAVING HUNDREDS OF CIVILIANS TO FLEE BURNING VILLAGES ASSUMING THE SERBS TAKE SOME OF THEIR CUES FROM WASHINGTON A TREND THAT HAS BEEN WELLESTABLISHED DURING THIS WAR THE POLICY CONFUSION THERE IN THE PAST WEEK COULD ONLY HAVE ENCOURAGED THEM TO GO FOR THE GOAL LAST SUNDAY DEFENSE SECRETARY WILLIAM PERRY SAID ON NATIONAL TELEVISION THAT US FORCES WOULD NOT BECOME INVOLVED TO PROTECT THE MUSLIMS IN GORAZDE PRESIDENT CLINTON'S CHAIRMAN OF THE JOINT CHIEFS OF STAFF GENERAL JOHN SHALIKASHVILI ECHOED THIS VIEW AT A PENTAGON NEWS CONFERENCE LAST WEEK RIGHT NOW IT IS OUR JUDGMENT THAT CONDITIONS IN GORAZDE DO NOT LEND THEMSELVES TO THE USE OF AIR POWER LATER GENERAL SHALIKASHVILI BACKTRACKED SAYING THAT MR CLINTON WAS NOT RULING OUT THE USE OF FORCE IN BOSNIA AND MR CLINTON DELIVERED A TOUGH STATEMENT OF US RESOLVE TO ENFORCE THE UN SAFE AREAS IT IS PARTICULARLY UNHELPFUL TO DIPLOMATIC EFFORTS TO HAVE TOP DEFENSE PEOPLE SAY ON NATIONAL TELEVISION THAT AIR STRIKES ARE UNLIKELY WHEN THE WARRING SIDES HAVE NOT BEEN RESPONDING WELL TO DIPLOMACY TO BEGIN WITH AFTER NEARLY TWO MONTHS OF OSTENSIBLE PROGRESS IN PEACE NEGOTIATIONS BOTH SERBS AND MUSLIMS SEEM TO BE BACKING OFF THEIR TENTATIVE AGREEMENTS IF THE SERBS WERE INTERESTED IN SETTLEMENT RUNNING OVER GORAZDE WOULD BE A FUNNY WAY OF SHOWING IT THIS WEEKEND'S ACTION OF COURSE MAY NOT SETTLE ANYTHING BUT IT WILL HAVE THE EFFECT OF RAISING THE COST OF AGGRESSION FOR THE SERBS SOMETHING THAT THE WEST SHOULD HAVE STARTED DOING LONG AGO AT SOME POINT THE COST OF THE WAR FOR SERBS HAS TO BE RAISED TO THE POINT WHERE THEY WILL SEE NO FURTHER ADVANTAGE IN CARRYING ON THEIR AGGRESSION IT'S TOO BAD SOMEONE DIDN'T FIGURE THAT OUT SOONER BUT NOW THAT THERE IS SERIOUS ENGAGEMENT THAT MAY BE THE ONLY WAY OF ENDING THE BOSNIAN TRAGEDY FOR THE CLINTON ADMINISTRATION THERE IS A LESSON HERE A POWERFUL NATION HAS TO HAVE A COHERENT AND CREDIBLE FOREIGN POLICY OR IT WILL ALWAYS INVITE TROUBLE 9404120054 940412 INTERNATIONAL BRIEF FERRUZZI FINANZIARIA SPA BOARD CLEARS CAPITAL INCREASE THROUGH ISSUING NEW SHARES ITALY'S FERRUZZI FINANZIARIA SPA SAID ITS BOARD APPROVED A CAPITAL INCREASE OF 134 TRILLION LIRE 8208 MILLION THROUGH THE ISSUE OF 5801 MILLION NEW SHARES AT PRICES FROM 1000 LIRE TO 4000 LIRE SHAREHOLDERS GAVE THE BOARD PERMISSION TO RAISE CAPITAL AT A NOV 30 MEETING FERRUZZI ALSO SAID THAT ITS SHARES OUTSTANDING WILL RISE TO 148 TRILLION FROM 8962 BILLION AFTER COMPLETION OF THE CAPITAL INCREASE THE FERRUZZI FAMILY'S STAKE IN FERRUZZI FINANZIARIA WILL DROP TO 12 FROM 198 WHILE THE STAKE ITS CREDITOR BANKS OWN IN FERRUZZI WILL RISE TO 689 FROM 487 UNDER THE TERMS OF THE RESTRUCTURING THE COMPANY SAID FERRUZZI SAID OPERATING PROFIT FOR THE FIRST TWO MONTHS OF 1994 ROSE 263 TO 447 BILLION LIRE WHILE REVENUE INCREASED 126 TO 345 TRILLION LIRE COMPARABLE 1993 FIGURES WEREN'T PROVIDED 9404120053 940412 BUSINESS BRIEF LEWIS GALOOB TOYS INC NINTENDO UNIT PAYS FIRM 161 MILLION FROM LAWSUIT LEWIS GALOOB TOYS INC SAID IT RECEIVED A 161 MILLION PAYMENT FROM NINTENDO OF AMERICA INC GALOOB BASED IN SOUTH SAN FRANCISCO CALIF MAKES TOYS AND VIDEO GAMES AS REPORTED LAST YEAR GALOOB WAS AWARDED 15 MILLION IN A LAWSUIT AGAINST THE US UNIT OF JAPAN'S NINTENDO CO TO COMPENSATE GALOOB FOR PROFITS LOST FROM JUNE 1990 TO JULY 1991 DURING THAT PERIOD BECAUSE OF A LAWSUIT BROUGHT BY NINTENDO GALOOB WASN'T ALLOWED TO SELL ITS GAME GENIE A DEVICE THAT CAN MAKE NINTENDO'S VIDEO GAMES EITHER EASIER OR HARDER TO PLAY THE ADDITION OF INTEREST TO THE ORIGINAL AWARD INCREASED THE TOTAL PAYMENT TO 161 MILLION GALOOB SAID IT WILL KEEP 122 MILLION OF THE AWARD WITH 39 MILLION GOING TO ITS GAME GENIE LICENSORS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE GALOOB SHARES CLOSED AT 6875 UP 125 CENTS 9404120052 940412 USA WASTE SEEKS TO ADD TO SITE DALLAS USA WASTE SERVICES INC ASKED THE COUNTY BOARD OF LAKE COUNTY ILL TO APPROVE AN EXPANSION OF THE COMPANY'S COUNTRYSIDE LANDFILL THE COMPANY SAID THE EXPANSION WOULD BE BOTH VERTICAL AND HORIZONTAL AND WOULD ADD AT LEAST 21 YEARS TO THE FACILITY'S LIFE EXPECTANCY IF THE COUNTY GIVES ITS APPROVAL USA WASTE SAID IT WILL THEN SEEK STATE APPROVAL THE COMPANY SAID THE FULL APPROVAL PROCESS IS EXPECTED TO TAKE 12 TO 18 MONTHS WHICH IT SAID IS WELL WITHIN THE REMAINING LIFE EXPECTANCY OF THE CURRENT SITE 9404120051 940412 AU BON PAIN CLOSES ACQUISITION BOSTON AU BON PAIN CO SAID IT HAS CLOSED ON THE ACQUISITION OF ABP MIDWEST INC FOR 390000 SHARES OF AU BON PAIN'S CLASS A COMMON STOCK AND 250000 CASH AU BON PAIN SAID REVENUE OF APB MIDWEST BAKERY CAFES WHICH OPERATED 19 FRANCHISED AU BON PAIN BAKERY CAFES IN CHICAGO AND MINNEAPOLIS STPAUL WAS ABOUT 127 MILLION FOR THE YEAR ENDED DEC 9404120050 940412 ABREAST OF THE MARKET STOCKS END MIXED IN LIGHT ACTION AS INVESTORS AWAIT INFLATION DATA BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS WERE MIXED AMID A MODERATE BOND MARKET RALLY AND SLIDING COMMODITY PRICES BUT MOSTLY IT WAS A SESSION OF WAITING MANY INVESTORS REMAINED INACTIVE IN ANTICIPATION OF TODAY'S SCHEDULED LABOR DEPARTMENT READING ON PRODUCER PRICES AND TOMORROW'S PLANNED REPORT ON CONSUMER PRICES THE DOW JONES INDUSTRIAL AVERAGE GAINED 1457 TO 368883 AND MANY BROADBASED INDEXES ADVANCED STILL TRADING CONTINUED TO EASE FROM ITS TORRID PACE OF MORE THAN A WEEK AGO WHEN PRICES WERE TUMBLING ON THE NEW YORK STOCK EXCHANGE THERE WERE 1168 ISSUES ADVANCING 1022 DECLINING AND 601 UNCHANGED VOLUME ON THE BIG BOARD REACHED JUST 248150000 SHARES COMPARED WITH 262500000 SHARES FRIDAY IT WAS THE LOWEST ONEDAY LEVEL SINCE FEB 11 WHEN 2137 MILLION SHARES TRADED IN A SNOW STORMSHORTENED SESSION TRADING ENDED 90 MINUTES EARLY THAT DAY VOLUME HASN'T BEEN LOWER THAN YESTERDAY DURING A FULL TRADING SESSION SINCE JAN 17 BUT AHEAD OF THE PRICE DATA INVESTORS WERE ENCOURAGED BY ONE INFLATION INDICATOR THE COMMODITIES MARKETS WHICH FELL SHARPLY THE KNIGHTRIDDER COMMODITY RESEARCH BUREAU INDEX OF 21 WIDELY FOLLOWED COMMODITIES FELL 165 TO 22213 THAT HELPED ENCOURAGE BOND INVESTORS THE TREASURY'S 30YEAR SECURITY WAS UP ABOUT 1/4 POINT NUDGING ITS YIELD DOWN TO 723 ECONOMISTS EXPECTED A 01 INCREASE TODAY IN THE PRODUCER PRICE INDEX A MEASURE OF WHOLESALE LEVEL INFLATION THE CONSUMER PRICE INDEX IS EXPECTED TO RISE BY 02 TOMORROW THE STANDARD & POOR'S 500STOCK INDEX INCREASED 277 TO 44987 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 116 TO 24945 AND THE DOW JONES EQUITY MARKET INDEX ADDED 233 TO 42645 THE NASDAQ COMPOSITE INDEX THOUGH EASED 060 TO 74811 AND THE AMEX MARKET VALUE INDEX SLIPPED 055 TO 44066 THOMAS GALLAGHER DIRECTOR OF CAPITAL COMMITMENT AT OPPENHEIMER & CO ATTRIBUTED THE WEAKNESS ON THE NASDAQ STOCK MARKET IN PART TO WEAKNESS IN THE TECHNOLOGY GROUP CISCO SYSTEMS LOST 1 3/8 TO 33 3/8 AND SEAGATE TECHNOLOGY 1 11/16 TO 22 1/2 HOPES FOR MORE ENCOURAGING EARNINGS REPORTS HELPED LIFT ECONOMICALLY SENSITIVE STOCKS SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH INVESTORS WILL BE INUNDATED WITH FIRSTQUARTER PROFIT STATEMENTS BEGINNING NEXT WEEK ALLIEDSIGNAL GAINED 5/8 TO 36 3/4 USXUS STEEL WAS UP 3/4 TO 38 1/8 BANK STOCKS SURGED AIDED BY NEWS THAT FLEET FINANCIAL GROUP AND BANK OF NEW YORK ARE IN MERGER DISCUSSIONS ANALYSTS SAID A DEAL BETWEEN THOSE FIRMS COULD SPARK OTHER COMBINATIONS AMONG REGIONAL BANKS FLEET'S SHARES WHICH WERE STRONG LAST WEEK INCHED UP 1/8 TO 39 3/4 BANK OF NEW YORK GAINED 1 3/4 TO 53 3/4 CITICORP ADVANCED 1 1/8 TO 39 1/2 NATIONSBANK 2 1/8 TO 51 1/2 FIRST BANK SYSTEM 1 7/8 TO 36 CHEMICAL BANKING 1 1/8 TO 38 3/4 AND BANK OF BOSTON 7/8 TO 25 7/8 THE BANK GROUP WAS ALSO AMONG THE PRIME BENEFICIARIES OF THE BOND MARKET'S STRENGTH JOHNSON & JOHNSON RALLIED 1 3/8 TO 38 3/4 AFTER RECEIVING POSITIVE MENTIONS FROM TWO INVESTMENT HEAVYWEIGHTS JOHN TEMPLETON FOUNDER OF TEMPLETON FUNDS AND PETER LYNCH OF FIDELITY INVESTMENTS MR LYNCH PREDICTED SHARES OF THE NEW BRUNSWICK NJ DRUG AND PERSONALCARE PRODUCTS MAKER WILL DOUBLE WITHIN SEVERAL YEARS MESSRS TEMPLETON AND LYNCH APPEARED ON PUBLIC BROADCASTING SYSTEMS' WALL STREET WEEK OTHER DRUG STOCKS WERE MOSTLY HIGHER WARNERLAMBERT ROSE 1 TO 63 AMERICAN HOME PRODUCTS 3/4 TO 58 1/4 AND BRISTOLMYERS SQUIBB 3/4 TO 51 3/8 MERCK THOUGH SLIPPED 3/8 TO 29 5/8 BLOCKBUSTER ENTERTAINMENT INCREASED 5/8 TO 26 1/2 THE WALL STREET JOURNAL'S HEARD ON THE STREET COLUMN REPORTED THAT SOME MONEY MANAGERS BELIEVE THE FORT LAUDERDALE FLA COMPANY'S STOCK WILL RECOVER FROM ITS RECENT WEAKNESS THE STOCK HAS EASED SINCE THE COMPANY AGREED TO BE ACQUIRED BY VIACOM ON TERMS THAT DISSATISFY SOME PEOPLE VIACOM'S CLASS B STOCK WAS UNCHANGED AT 24 ON THE AMEX FASTENAL INCREASED 1 5/8 TO 30 7/8 ON NASDAQ AFTER ROBERT W BAIRD & CO INCREASED ITS RATING ON THE WINONA MINN MAKER OF NUTS BOLTS AND SCREWS TO STRONG BUY FROM ACCUMULATE THE SECURITIES FIRM SAID RECENT LOSSES IN FASTENAL HAVE LEFT IT AT AN ATTRACTIVE PRICE STUDENT LOAN MARKETING ASSOCIATION OR SALLIE MAE ADDED 1 TO 43 7/8 THE WASHINGTON DC COMPANY WHICH PROVIDES FINANCING FOR STUDENT LOANS REPORTED FIRSTQUARTER EARNINGS OF 142 A SHARE EXCLUDING A CHARGE COMPARED WITH 162 A SHARE LAST YEAR 9404120048 940412 THE CLINTON TAX HOAX BY ALAN REYNOLDS PRESIDENT CLINTON HAS ASSURED US THAT WHEN WE GET AROUND TO FILING OUR TAX RETURNS NEARLY ALL OF US WILL BE PLEASANTLY SURPRISED TO FIND THAT OUR TAXES HAVE NOT GONE UP AFTER ALL IN FACT SAYS THE ECONOMIC REPORT OF THE PRESIDENT THE INCOME TAX INCREASES APPLY ONLY TO FAMILIES WITH TAXABLE INCOMES OVER 140000 THE TOP 12 OF HOUSEHOLDS WHERE DID THEY COME UP WITH THAT 12 FIGURE ANYWAY IT TURNS OUT TO BE A COUNT OF THE NUMBER OF FAMILIES EARNING MORE THAN 200000 THAT COMES TO 14 MILLION OR 13 OF ALL FAMILIES THESE FAMILIES ARE SAID TO BE THOSE WITH TAXABLE INCOMES ABOVE 140000 WHICH IS WHERE THE NEW 36 TAX KICKS IN ON A JOINT RETURN HOW DOES A BEFORETAX INCOME OF 200000 TURN INTO A TAXABLE INCOME OF ONLY 140000 WHEN THE ADMINISTRATION SAYS 81 OF ITS TAX INCREASE AFFECTS ONLY THOSE EARNING MORE THAN 200000 IT IS DEFINING INCOME IN A RATHER CREATIVE WAY THE SMALL PRINT UNDER TABLE 21 IN THE BUDGET OMITTED FROM THE SAME TABLE IN THE ECONOMIC REPORT EXPLAINS FAMILY INCOME INCLUDES ALL FEDERAL INCOME SOCIAL INSURANCE AND CORPORATE INCOME TAXES THUS FAMILIES SUPPOSEDLY EARNING 200000 ARE REALLY EARNING CLOSER TO 180000 IN THE CONVENTIONAL SENSE THIS FIGURE THEN BECOMES 140000 OF TAXABLE INCOME ASSUMING AN AVERAGE DEDUCTION OF 40000 EVEN IF THE NUMBER OF FAMILIES WITH EXPANDED INCOME ABOVE 200000 IS REALLY EQUIVALENT TO THE NUMBER OF JOINT RETURNS WITH A TAXABLE INCOME OVER 140000 THAT STILL DOES NOT TELL US WHAT PERCENTAGE OF WORKERS OR TAXPAYERS WILL BE AFFECTED FOR ONE THING MOST HIGHINCOME FAMILIES HAVE AT LEAST TWO FAMILY MEMBERS WORKING THAT MEANS THERE ARE NEARLY TWICE AS MANY WORKERS AS FAMILIES AFFECTED BY THE NEW HIGHER TAX RATES BY MY CALCULATION APPROXIMATELY 2 OF ALL WORKERS WHO ARE IN MARRIED FAMILIES FILING JOINT RETURNS ARE NOW IN A 36 OR HIGHER TAX BRACKET BUT THAT IS ONLY A FRACTION OF THE PROBLEM RECALL THAT THE ECONOMIC REPORT CLAIMS THAT ONLY 12 OF HOUSEHOLDS ARE AFFECTED BY HIGHER TAX RATES THIS IS MUCH WORSE THAN MISLEADING IT LEAVES OUT MILLIONS OF UNMARRIED PROFESSIONALS AND MANAGERS THE 36 TAX APPLIES TO ALL TAXABLE INCOME ABOVE 115000 FOR SINGLES 127500 FOR HOUSEHOLD HEADS AND 70000 FOR MARRIED PEOPLE WHO FILE SEPARATELY THERE ARE 56 MILLION FAMILIES WITH EXPANDED INCOMES BETWEEN 100000 AND 200000 THAT FIGURE INCLUDES MANY SINGLES WHO ARE INDEED AFFECTED BY THE 36 TAX BRACKET AS WELL AS MARRIED PEOPLE WHO DO NOT FILE JOINT RETURNS AND HAVE TAXABLE INCOMES ABOVE 70000 NOT ONE OF THESE TAXPAYERS IS COUNTED AMONG THE 14 MILLION FAMILIES EARNING OVER 200000 RETIRED PEOPLE HIT HARD BY HIGHER INCOME TAX RATES ON SOCIAL SECURITY BENEFITS ARE NOT COUNTED EITHER ADDING SINGLES AND SECONDEARNERS INTO THE RANKS OF THOSE SHOVED INTO THE HIGHER TAX BRACKETS WOULD BE MORE HONEST BUT WOULD STILL UNDERSTATE THE PERCENTAGE OF TAXPAYERS IN THAT PLIGHT THAT IS BECAUSE LOWINCOME FAMILIES DO NOT PAY ANY INCOME TAX MORE THAN 10 OF ALL HOUSEHOLDS HAVE INSTEAD BEEN RECEIVING A FEDERAL CHECK AT TAX TIME FROM THE EARNED INCOME TAX CREDIT THIS PROPORTION WILL SOON RISE QUITE SUBSTANTIALLY BECAUSE THE EARNED INCOME TAX CREDIT WAS MADE FAR MORE GENEROUS LAST YEAR AS A RESULT MANY SECONDEARNERS IN TWOPAYCHECK HOUSEHOLDS MAY STOP WORKING WHICH FURTHER EXPANDS THE PERCENTAGE OF TAXPAYERS HIT BY HIGHER TAX RATES IN FAIRNESS NOBODY ON THE CLINTON TEAM EVER CLAIMED THAT HIGHER TAX RATES WOULD HAVE NO BAD EFFECTS ON THE ECONOMY WHAT THEY CLAIMED IS THAT HIGHER TAX RATES WOULD ONLY AFFECT 12 OF HOUSEHOLDS WHICH IS SIMPLY UNTRUE THEY ALSO CLAIMED THAT HIGHER TAX RATES WOULD RESULT IN LOWER LONGTERM INTERESTS RATES WHICH NEVER MADE SENSE AND IS NOW DISCREDITED BY SIX MONTHS OF RISING BOND YIELDS THERE IS A NEW LINE OF DEFENSE BUT IT DOES NOT LOOK MORE PROMISING THAN THE FIRST TWO MR CLINTON'S ECONOMIC REPORT CLAIMS TAX RATES WON'T BE SO BAD BECAUSE HIGH INCOME TAXPAYERS ARE PRESUMABLY MORE LIKELY TO MAKE THE PAYMENTS OUT OF SAVINGS IN DEMANDSIDE TRICKLEUP ECONOMICS SAVINGS DON'T MATTER THOSE RICH FAMILIES AND SINGLES CAN SIMPLY PAY THEIR TAXES BY LIQUIDATING STOCKS AND BONDS AT DISTRESSSALE PRICES BESIDES SAYS THE ECONOMIC REPORT PAYMENT OF THE EITC WILL TEND TO STIMULATE DEMAND JUST SEND OUT MORE GOVERNMENT CHECKS ON THE CONDITION THAT ONE SPOUSE STAYS HOME AND THE ECONOMY WILL REMAIN ALMOST AS ROSY AS THE BUDGET FORECAST OF PERPETUAL 58 YIELDS ON 10YEAR BONDS IN REALITY THE PUNITIVE NEW TAX RATES ON SUCCESS WILL INDEED HURT SAVING AND WILL ALSO SHRINK LABOR FORCE PARTICIPATION THE STATISTICAL TRICKS USED TO MAKE INCOMES OF AFFECTED TAXPAYERS LOOK HIGHER THAN THEY ARE OR TO PRETEND THAT ONLY FAMILIES FILING JOINT RETURNS ARE IN THE HIGHER TAX BRACKETS WILL NOT FOOL THOSE WHO ARE NOW FILING THEIR 1993 TAX RETURNS IF LEGISLATORS WHO VOTED FOR HIGHER TAX RATES REALLY BELIEVED THAT ONLY 12 OF VOTERS WOULD BE DIRECTLY AFFECTED THEY WILL BE SURPRISED BY THE NUMBER OF ANGRY TAXPAYERS THEY HAVE TO FACE IN NOVEMBER MR REYNOLDS IS DIRECTOR OF ECONOMIC RESEARCH AT THE HUDSON INSTITUTE IN INDIANAPOLIS 9404120047 940412 REVIEW & OUTLOOK EDITORIAL JUSTICE MITCHELL ON WHITEWATER ISN'T IT JUST LIKE THE CLINTON ADMINISTRATION TO DANGLE A LIFETIME SUPREME COURT APPOINTMENT BEFORE THE SENATE'S LEADING PLAYER IN THE DECISION ON WHITEWATER HEARINGS MAJORITY LEADER GEORGE MITCHELL HASN'T BEEN NOMINATED TO THE COURT YET BUT WE SOMEHOW DOUBT HE CAN PUT HIS PROSPECTS OUT OF HIS MIND AS HE NEGOTIATES HOW AND WHETHER TO REDEEM THE PROMISE OF HEARINGS CONGRESS RETURNS FROM EASTER RECESS TODAY AND BEFORE LEAVING TOWN BOTH THE SENATE AND HOUSE VOTED TO GO AHEAD WITH HEARINGS THE MAJORITY LEADER COULD ALWAYS SIMPLY KEEP THIS PROMISE OR WITH THE COURT APPOINTMENT NOW SO PROMINENTLY DANGLING HE COULD DEMONSTRATE JUDICIAL TEMPERAMENT BY RECUSING HIMSELF FROM THE DECISION ON THE OTHER HAND MR MITCHELL IS A PROVEN MASTER OF USING THE POWERS OF HIS OFFICE TO STALL PROMISES TO DEATH AS IN 1989 HE MANAGED TO DEFEAT A CAPITAL GAINS TAX CUT PROPOSED BY THE ADMINISTRATION PASSED BY THE HOUSE AND FAVORED BY A MAJORITY OF HIS OWN CHAMBER WILL WHITEWATER HEARINGS MEET THE SAME FATE SO WE NOTE THAT PUTATIVE JUSTICE MITCHELL IS SUDDENLY PREOCCUPIED WITH THE TIMING AND SCOPE OF HEARINGS WE'RE GOING TO DO IT AT A TIME AND UNDER CIRCUMSTANCES WHICH DO NOT UNDERMINE THE SPECIAL COUNSEL'S INVESTIGATION HE SAID SUNDAY IN OTHER WORDS HE'S FOR LETTING CONGRESS HIDE BEHIND SPECIAL COUNSEL ROBERT FISKE'S PROBE HE WANTS TO DELAY HEARINGS UNTIL MR FISKE IS FINISHED WITH THE WASHINGTON PORTION OF HIS PROBE AND RELEASES SOME PRELIMINARY REPORT PERHAPS TELLING US IF LAWS WERE BROKEN BUT LITTLE OR NOTHING ABOUT WHAT ACTUALLY TOOK PLACE THIS WOULD GIVE MR MITCHELL A FIG LEAF TO SAY HEARINGS REALLY AREN'T NEEDED ON THESE MATTERS AND IF REPUBLICANS PRESSED THE ARKANSAS PORTION OF WHITEWATER MR MITCHELL WOULD SAY CONGRESS MUST AGAIN WAIT UNTIL MR FISKE FINISHES THAT PART OF HIS PROBE THAT WOULD CONVENIENTLY PUSH HEARINGS BEYOND NOVEMBER'S ELECTION AND MR MITCHELL'S OWN ELEVATION TO THE BENCH IF ONLY RICHARD NIXON HAD THOUGHT OF THIS MR MITCHELL'S OTHER OBJECTION IS THAT WHITEWATER HEARINGS WOULD SOMEHOW PREVENT US FROM DOING CRIME WELFARE REFORM HEALTH CARE REFORM AND OTHER THINGS BUT WHY SHOULD IT IF THERE'S AS LITTLE TO WHITEWATER AS THE WHITE HOUSE SAYS IT'S HARD TO SEE HOW IT WOULD SWALLOW ALL OF CONGRESS THIS FRETTING ABOUT CONGRESSIONAL HEARINGS NEVER BOTHERED DEMOCRATS IN THE PAST A RECENT STUDY BY GEORGE MANGAN FOR THE CONGRESSIONAL RESEARCH SERVICE FOUND THAT CONGRESS HELD NO FEWER THAN 25 HEARINGS OR INVESTIGATIONS INTO ETHICAL OR LEGAL ISSUES FROM 1981 TO 1992 IN ONLY ONE OF THE 12 REAGAN AND BUSH YEARS 1991 THE GULF WAR YEAR DID CONGRESS NOT HOLD SUCH HEARINGS IN PRESIDENTIAL ELECTION YEARS IT HELD THREE EACH THESE INQUIRIES INCLUDED SUCH MOMENTOUS SCANDALS AS WHETHER AN AMBASSADOR MISUSED A GIFT FUND WHETHER ED MEESE MISFILED A 1985 PERSONAL DISCLOSURE FORM AND THE BACKGROUND AND PROPRIETY OF TELEPHONE CONTACTS BETWEEN A REAGAN BUDGET OFFICIAL AND THE ECONOMIC REGULATORY ADMINISTRATION NOTHING CAME OF THESE AND IN ANY EVENT AT LEAST ED MEESE NEVER MADE A KILLING IN CATTLE FUTURES AT LEAST FOUR OF THESE 25 PROBES OF GOP PRESIDENTS TOOK PLACE WHILE REPUBLICANS CONTROLLED THE SENATE THESE WERE IRANCONTRA SENATEHOUSE SELECT COMMITTEES IN 198687 AN EXAMINATION OF CHARLES ZWICK FOR TELEPHONE RECORDINGS SENATE FOREIGN RELATIONS IN 1984 AND EVEN PROBES OF THE PRIVATE BUSINESS DEALINGS OF REAGAN OFFICIALS JOHN FEDDERS SENATE BANKING IN 1983 AND BILL CASEY SENATE INTELLIGENCE IN 1981 THAT TOOK PLACE BEFORE THEY HAD TAKEN PUBLIC OFFICE IN THREE CASES CONGRESS ALSO LOOKED INTO MATTERS THAT WERE ALSO BEING PURSUED BY AN INDEPENDENT COUNSEL CONGRESS UNDERMINED THE SPECIAL COUNSEL IN ONLY ONE CASE IRANCONTRA AND THAT WAS BECAUSE IT GRANTED IMMUNITY WHICH WON'T HAPPEN IN WHITEWATER REPUBLICAN LEADER BOB DOLE IS NOW REQUESTING A SINGLE SPECIAL COMMITTEE TO BE COMPOSED OF MEMBERS FROM EACH OF THE SEVERAL COMMITTEES THAT MIGHT CLAIM A PIECE OF WHITEWATER THAT WOULD AT LEAST ELIMINATE THE CIRCUS OF SEVERAL COMMITTEE HEARINGS EVEN AS IT ENSURED OVERSIGHT OF ALL THE VARIOUS PARTS OF THE STORY THAT NOW TRAVEL UNDER THE NAME OF WHITEWATER INCLUDING WE HOPE HILLARY RODHAM CLINTON'S CATTLE MIRACLE THE HOUSE WOULD STILL DO ITS THING OF COURSE ONCE SPEAKER FOLEY LOSES HIS MORTAL FEAR OF REPUBLICAN JIM LEACH WE HOPE REPUBLICANS ARE SERIOUS THE DUTY OF A CONGRESSIONAL OPPOSITION IS TO SCRUTINIZE THE EXECUTIVE BRANCH ESPECIALLY WHEN THE PARTY IN POWER WON'T INVESTIGATE ITSELF REPUBLICANS ARE ALREADY HOLDING UP THE NOMINATION OF BANK REGULATOR AND FRIENDOFHILLARY RICKI TIGERT BUT THEY BLINKED CLARK CLIFFORD LAWYER JAMIE GORELICK INTO THE JUSTICE DEPARTMENT ON A VOICE VOTE THE JUSTICE MITCHELL TALK CAN CUT BOTH WAYS REPUBLICANS HAVE IT IN THEIR POWER TO MAKE SURE HE DOESN'T GET THE EXPECTED SMOOTH CONFIRMATION UNLESS THEY GET REAL WHITEWATER HEARINGS 9404120046 940412 BUSINESS BRIEF SANDY CORP TRAINER TOUTS INDEPENDENCE AFTER REJECTING MERGER OFFER SANDY CORP A CORPORATE TRAINING PROVIDER THAT REJECTED A SECOND MERGER PROPOSAL FROM TEXASBASED WESTCOTT COMMUNICATIONS INC SAID IT CAN BEST SERVE CLIENTS THROUGH INDEPENDENCE THE COMPANY HAS STATED IT EXPECTS REVENUE FOR THE YEAR ENDING AUG 31 TO INCREASE AS MUCH AS 14 MORE THAN FISCAL 1993 REVENUE OF 35 MILLION FOR THE SECOND QUARTER ENDED FEB 28 THE TROY MICH COMPANY REPORTED EARNINGS OF 398000 OR 17 CENTS A SHARE WITH 98 MILLION REVENUE COMPARED WITH EARNINGS OF 430000 OR 18 CENTS A SHARE A YEAR EARLIER WITH 85 MILLION REVENUE WILLIAM SANDY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE BOARD CONSIDERED WESTCOTT'S LATEST MERGER OFFER OF ONE SHARE FOR EACH 1896 SHARES OF SANDY STOCK BUT SANDY SAID THE BOARD REJECTED THE OFFER TO PURSUE ITS OWN STRATEGY 9404120045 940412 MCDONNELL DOUGLAS SAID TO GET CONTRACT TO LAUNCH 40 SATELLITES FOR IRIDIUM PLAN BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP IS EXPECTED TO ANNOUNCE THAT IT HAS WON A 400 MILLION AGREEMENT TO LAUNCH 40 SATELLITES FOR THE IRIDIUM MOBILEPHONE SYSTEM ITS LARGEST COMMERCIAL SPACELAUNCH CONTRACT ST LOUISBASED MCDONNELL AND IRIDIUM PROJECT LEADER MOTOROLA INC PLAN TO DISCLOSE DETAILS OF THE CONTRACT LATER THIS WEEK A MCDONNELL SPOKESWOMAN DECLINED COMMENT AND MOTOROLA OFFICIALS COULDN'T BE REACHED BUT SEVERAL PEOPLE FAMILIAR WITH THE CONTRACT SAID THE COMPANY WILL USE ITS DELTA II ROCKETS TO PLACE FIVE SATELLITES IN ORBIT ON EACH OF EIGHT LAUNCHES IN ALL THE 337 BILLION IRIDIUM CONSTELLATION WILL REQUIRE 73 SATELLITES INCLUDING ACTIVE AND BACKUP SYSTEMS THAT WILL BE LAUNCHED STARTING IN 1996 OTHER LAUNCHSERVICES WILL BE PROVIDED BY THREE PROTON ROCKETS FROM RUSSIA'S KRUNICHEV SPACE CENTER CARRYING SEVEN SATELLITES EACH AND BY CHINA GREAT WALL INDUSTRY CORP WHICH WILL PROVIDE SIX ROCKETS CARRYING TWO SATELLITES EACH MCDONNELL A LEADING PROVIDER OF MILITARY LAUNCH SERVICES HAS LANDED COMMERCIAL CONTRACTS TYPICALLY FOR ONLY ONE OR TWO LAUNCHES IN THE PAST THIS IS A BIG ONE FOR THEM SAID ONE INDUSTRY MANAGER FAMILIAR WITH THE COMPANY'S ORDERS ANOTHER EXPRESSED SURPRISE AT THE LARGE SIZE OF THE CONTRACT THE IRIDIUM PLAN CALLS FOR PROVIDING A HIGHSTRENGTH SIGNAL CARRYING TELEPHONE CALLS TO USERS WORLDWIDE WITHOUT PASSING THROUGH LOCAL PHONE SYSTEMS STARTING IN 1998 WHILE IRIDIUM BACKERS ARE CONFIDENT THE SYSTEM WILL SUCCEED RIVALS AND SKEPTICS HAVE SUGGESTED THAT IT IS TOO CUMBERSOME AND COSTLY AND THAT PERMINUTE CHARGES OF 210 OR MORE WILL BE TOO PRICEY TO ATTRACT A HIGH VOLUME OF CALLERS AMONG THE SYSTEMS CHALLENGING IRIDIUM IS GLOBALSTAR A 48SATELLITE MOBILETELEPHONE SYSTEM LED BY LORAL CORP OF NEW YORK WHICH INTENDS TO CHARGE 65 CENTS A MINUTE IN THE AREAS IT SERVES LOCKHEED CORP A PARTNER AND SUPPLIER IN THE IRIDIUM PROJECT ALSO HOPES TO LAND LAUNCH CONTRACTS FOR REPLACEMENT SATELLITES THAT EVENTUALLY WILL BE NEEDED FOR THE IRIDIUM CONSTELLATION LOCKHEED WOULD USE ITS NEW LLV SMALLPAYLOAD ROCKET SYSTEM WHICH WILL CARRY ITS FIRST SATELLITE IN NOVEMBER 1994 FOR CTA INC OF ROCKVILLE MD THE INTERNATIONAL MARKET FOR COMMERCIAL LAUNCH SERVICES IS ALREADY CROWDED WITH COMPETITORS AND US PROVIDERS HAVE BEEN PUT UNDER EXTRAORDINARY PRESSURE BY THE LOWER COST RUSSIAN AND CHINESE ENTRANTS LOCKHEED NONETHELESS HOPES IT CAN FIND A NICHE BY OFFERING A FAMILY OF LAUNCH VEHICLES CARRYING PAYLOADS OF 2000 TO 8000 POUNDS THE COMPANY HAS ANOTHER CONTRACT WITH BALL CORP'S SPACE DIVISION TO CARRY A SMALL MILITARY PAYLOAD IN JUNE 1996 9404120043 940412 WORLD MARKETS TOKYO WINNING STREAK IS HALTED BY UNCERTAINTY ABOUT JAPANESE RULE EUROPEAN BOURSES GAIN A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS ENDED MIXED MONDAY SNAPPING A FOURSESSION WINNING STREAK IN EXTREMELY LIGHT DEALINGS AMID UNCERTAINTY ABOUT WHO WILL BE PICKED AS JAPAN'S NEW PRIME MINISTER LONDON SHARES CLIMBED SOLIDLY TO END AT THE DAY'S HIGHS INFLUENCED BY HIGHER BRITISH GOVERNMENT BONDS AND EARLY STRENGTH ON WALL STREET FRANKFURT PRICES JUMPED 1 AS CONFIDENCE FROM LAST WEEK'S MARKET ROBUSTNESS CARRIED OVER HOPES FOR A GERMAN INTERESTRATE REDUCTION HELPED PUSH MANY EUROPEAN STOCK MARKETS HIGHER WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11355 UP 111 REFLECTING HIGHER MARKETS IN ALL REGIONS HEALTH CARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 16496 UP 466 OR 29 WITH COMMUNITY PSYCHIATRIC OF THE US POSTING A 58 GAIN IN ITS LOCAL CURRENCY TOBACCO STOCKS TRAILED AT 7288 DOWN 123 OR 17 WITH RICHEMONT OF SWITZERLAND SLIDING 78 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 4401 POINTS FRIDAY FELL 3691 TO 1989808 IN TRADING TUESDAY THE NIKKEI FELL 19014 POINTS TO CLOSE THE MORNING SESSION AT 1970794 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES DOWN SHARPLY FROM 5254 MILLION SHARES FRIDAY WHEN TURNOVER WAS SOMEWHAT EXAGGERATED BY THE SPECIAL QUOTATION FOR SETTLEMENT OF APRIL NIKKEIINDEX OPTIONS CONTRACTS GAINERS TOPPED LOSERS 535460 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 011 POINT FRIDAY SLIPPED 075 TO 161405 INVESTORS WEREN'T WILLING TO MAKE MAJOR MOVES AHEAD OF ANY SIGNS OF PROGRESS IN THE PROCESS TO SELECT A SUCCESSOR TO PRIME MINISTER MORIHIRO HOSOKAWA WHO SAID FRIDAY HE INTENDED TO RESIGN BECAUSE OF ALLEGATIONS ABOUT HIS PERSONAL FINANCES THAT LEFT THE NIKKEI TO MOVE IN AN EXTREMELY NARROW RANGE OF 13183 POINTS LEADERS OF THE GOVERNING COALITION PARTIES APPEARED STALLED ON FORMING A NEW GOVERNMENT AND MARKET PARTICIPANTS WORRIED THAT THE COALITION WOULD SPLIT USHERING IN POLITICAL CONFUSION THAT COULD HURT THE ECONOMY AND STOCKS THE NIKKEI WAS LITTLE CHANGED IN AFTERNOON DEALINGS EVEN AFTER THE INDUSTRIAL BANK OF JAPAN SAID IT WAS KEEPING ITS LONGTERM PRIME LENDING RATE UNCHANGED AT 44 FOR APRIL THIS RATE IS A BENCHMARK FOR MANY PERSONAL HOUSING AND CORPORATE LOANS IN JAPAN IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 286 POINTS TO 31494 ALSO THE SESSION PEAK RECOVERING FROM A SESSION LOSS OF 71 POINTS THE FT 30STOCK INDEX GAINED 211 POINTS TO 24884 VOLUME WAS 6023 MILLION SHARES COMPARED WITH 8767 MILLION SHARES IN THE PREVIOUS SESSION A SLOWING THAT IS TYPICAL ON THE FIRST DAY OF A NEW FISCAL QUARTER IN THE RUNUP TO TWO US INFLATION REPORTS ON PRODUCER AND CONSUMER PRICES TODAY AND TOMORROW LONDON INVESTORS WERE RELIEVED TO SEE EARLY STRENGTH IN NEW YORK STOCKS WHICH HAVE RECENTLY TRACKED MOVES IN THE WEAK US BOND MARKET LONDON TRADERS SAID ANY SIGN THAT US INFLATION IS MUCH HIGHER THAN EXPECTED COULD TRIGGER MORE DISRUPTION IN THE BOND MARKETS AND THUS SEND LONDON SHARES DOWN THE MARKET ALSO HOPED THE GERMAN BUNDESBANK THE CENTRAL BANK WOULD EASE RATES THIS WEEK IN FRANKFURT FOLLOWING LAST WEEK'S 33 GAIN THE DAX 30STOCK INDEX CLIMBED 2199 POINTS TO 222533 THE HIGHEST LEVEL SINCE EARLY JANUARY WHEN IT FELL FROM ITS RECORD HIGH OF 226798 THE INDEX SCORED AN INTRADAY HIGH OF 223399 YESTERDAY WHEN MUCH OF THE ACTIVITY WAS ATTRIBUTED TO PROFESSIONAL TRADERS' BUYING TO COVER SHORT OR OVERSOLD POSITIONS WHILE FOREIGN INVESTORS BEGAN TO SHOW RENEWED INTEREST EXTENDING TO SMALLCAPITALIZED ISSUES A BULLISH SIGN THE MARKET ALSO WAS LIFTED BY HOPES FOR A RATE CUT THURSDAY BY THE BUNDESBANK THOUGH MOST INVESTORS DIDN'T EXPECT AN EASING FOR TWO MORE WEEKS BUT IN PARIS AMID GROWING EXPECTATIONS FOR A GERMAN RATE CUT THIS WEEK SHARES REBOUNDED FROM OPENING LOSSES AND RALLIED 14 FOLLOWING DECLINES IN THE TWO PREVIOUS SESSIONS INVESTORS ALSO WERE ENCOURAGED BY FRENCH CORPORATE EARNINGS FOR 1993 THAT TENDED TO CONFIRM IT WASN'T SUCH A BAD YEAR AFTER ALL MUCH OF THE RELATIVELY CALM TURNOVER WAS ATTRIBUTED TO SHORTCOVERING AND PURCHASES BY FUTURES OPERATORS OF UNDERLYING BASKETS OF EQUITIES IN AMSTERDAM STOCKS ADVANCED IN ACTIVE TRADING THE UNEXPECTED CLIMB WAS LINKED TO THE OPTIONS CONTRACT EXPIRATION FRIDAY IN MILAN SHARES INCLUDING THOSE TRADED ELECTRONICALLY SOARED 34 ON SUSTAINED ENTHUSIASM ABOUT THE PROSPECT THAT ITALY WOULD SOON FORM A RIGHTWING COALITION GOVERNMENT IN THE EXTREMELY HEAVY TRADING PERHAPS THOUSANDS OF STOCK ORDERS WEREN'T EXECUTED BY THE SESSION'S CLOSE ITALIAN INVESTORS INCREASINGLY MOVED THEIR CASH FROM FIXEDINCOME INVESTMENTS INTO THE STOCK MARKET AND INDUSTRIAL ISSUES CONTINUED TO BE THE BIGGEST BENEFICIARIES BECAUSE OF THEIR OUTLOOK UNDER THE EXPECTED NEW GOVERNMENT IN MADRID EQUITIES ROSE ON GROWING SPECULATION THAT THE GERMAN BUNDESBANK WOULD REDUCE RATES THURSDAY IN STOCKHOLM EQUITIES ROSE FOR THE FIFTH SESSION IN A ROW THIS TIME MAINLY BECAUSE OF DECLINING BOND YIELDS IN ZURICH SHARES SURVIVED A LATE BOUT OF PROFITTAKING TO END SLIGHTLY HIGHER IN LIGHT VOLUME IN SYDNEY SHARES EASED IN LIGHT TRADING PARTLY BECAUSE OF A SHARP RISE IN THE AUSTRALIAN DOLLAR IN HONG KONG EQUITIES GOT A SOLID LIFT IN LATE DEALINGS BY SPECULATIVE BARGAINHUNTERS TO SURGE TO A 19 GAIN BUT TURNOVER REMAINED ANEMIC WITHOUT ANY SIGNIFICANT FOREIGN PARTICIPATION IN SINGAPORE PRICES SOARED ALMOST 3 LED BY A FEW BLUE CHIPS WITH LATE BUYING ATTRIBUTED TO JAPANESE FUNDS BUT THE BROADER MARKET WAS QUIET AND TRADING WAS THIN IN KUALA LUMPUR STOCKS JUMPED 12 IN LIGHT DEALINGS AS CAUTIOUS BUYERS SEARCHED FOR ATTRACTIVELY PRICED ISSUES LARGELY AMONG BLUE CHIPS DESPITE THE BARGAINHUNTING A MARKET FLOOR HADN'T BEEN DISCERNED AND PRICES WERE CONSIDERED VULNERABLE TO INFLUENCES FROM ABROAD IN SEOUL SHARES ADVANCED 13 IN A TECHNICAL REACTION TO SHARP RECENT DROPS FOR LARGE BLUE CHIPS IN MANILA PRICES ENDED MIXED AS BARGAINHUNTERS PROPELLED THE BOURSE TO A LATE RECOVERY FROM EARLY WEAKNESS IN TAIPEI THE MARKET SLUMPED 14 IN ACTIVE DEALINGS AS PROFITTAKING IN FINANCIAL SHARES ERODED EARLY STRENGTH INVESTORS CONTINUED TO BE NERVOUS ABOUT INTEREST RATES AND A SLOWDOWN IN EUROPEAN INTERESTRATE CUTS IN BANGKOK STOCKS ROSE SOLIDLY BUT ACTIVITY WAS LIGHT AHEAD OF A THREEDAY THAI HOLIDAY WITH INVESTORS ALSO RELUCTANT BECAUSE OF POLITICAL PROBLEMS CONCERNING CONSTITUTIONAL AMENDMENTS IN MEXICO CITY STOCKS DROPPED SLIGHTLY LESS THAN 1 ON THIS YEAR'S SLOWEST TURNOVER IN A DIRECTIONLESS SESSION AMID CONTINUED UNCERTAINTIES ABOUT MEXICO'S POLITICAL SITUATION FOLLOWING THE MARCH 23 ASSASSINATION OF THE RULING PARTY'S PRESIDENTIAL CANDIDATE 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 9404120042 940412 BUSINESS BRIEF PPG INDUSTRIES INC AUTOCOATING PARTNERSHIP WITH NIPPON PAINT IS ENDED PPG INDUSTRIES INC SAID IT AND NIPPON PAINT CO OF OSAKA JAPAN HAVE ENDED AGREEMENTS UNDER WHICH THE COMPANIES COOPERATIVELY PROVIDED COATINGS TO JAPANESE AUTO MAKERS IN NORTH AMERICA AND EUROPE THE PITTSBURGHBASED PRODUCER OF GLASS CHEMICALS AND COATINGS SAID IT DISCUSSED CONTINUING THE RELATIONSHIP WITH NIPPON PAINT BUT BOTH COMPANY'S OBJECTIVES ALLOWED THE AGREEMENTS WHICH HAD BEEN EXTENDED SEVERAL TIMES TO EXPIRE THE COMPANIES WILL JOINTLY SERVE CUSTOMERS FOR A ONEYEAR TRANSITION PERIOD UNDER THE 1987 AGREEMENTS NIPPON PAINT PROVIDED PRODUCT QUALIFICATION TECHNICAL SUPPORT AND LICENSED CERTAIN PRODUCTS TO THE US COMPANY PPG SAID IT HAS CONTINUING RIGHTS TO THE PRODUCT TECHNOLOGY AND WILL MAKE MORE PRODUCTS FORMERLY PROVIDED BY NIPPON PAINT 9404120041 940412 WHO'S NEWS PUBLIC SERVICE CO OF NEW MEXICO PUBLIC SERVICE CO OF NEW MEXICO ALBUQUERQUE NM MANUEL LUJAN JR 65 YEARS OLD WAS NAMED A DIRECTOR OF THIS UTILITY COMPANY FILLING A POSITION VACANT SINCE DECEMBER MR LUJAN WAS FORMERLY A US CONGRESSMAN AND SECRETARY OF THE INTERIOR 9404120040 940412 BUSINESS BRIEF ARMCO INC STEELMAKER TO RECORD GAINS FROM SHARE SALE VENTURE ARMCO INC SAID IT WILL RECORD NONRECURRING GAINS IN THE SECOND QUARTER OF ABOUT 67 MILLION OR 64 CENTS A SHARE ARISING FROM THE INITIAL PUBLIC OFFERING AND RECAPITALIZATION OF ITS FORMER JOINT VENTURE ARMCO STEEL CO ARMCO A PITTSBURGHBASED PRODUCER OF STAINLESS AND ELECTRICAL STEELS SAID THE INCOME CONSISTS OF A PRETAX GAIN OF 37 MILLION AND A TAX CREDIT OF 30 MILLION THE PRETAX GAIN IS RELATED TO THE RECOGNITION OF DEFERRED PENSION CURTAILMENT GAINS AND THE RELEASE FROM CERTAIN OBLIGATIONS TO THE FORMER JOINT VENTURE ARMCO ALSO SAID IT RECEIVED 1023987 COMMON SHARES IN THE NEWLY CREATED AK STEEL CORP FORMERLY ARMCO STEEL A JOINT VENTURE WITH JAPAN'S KAWASAKI STEEL CORP IN EXCHANGE FOR ITS EQUITY INTEREST IN THE OPERATION THE COMPANY SAID THE STOCK IS VALUED AT 24 MILLION 9404120039 940412 ANTITRUST PACT AIMS TO SUPPORT DEFENSE MERGERS PENTAGON US REGULATORS AGREE TO GIVE INDUSTRY SPECIAL CONSIDERATIONS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PENTAGON OFFICIALS AND FEDERAL ANTITRUST REGULATORS HAVE REACHED AN INFORMAL UNDERSTANDING THAT IS EXPECTED TO MAKE IT SUBSTANTIALLY EASIER FOR MERGERS TO OCCUR IN THE DEFENSE INDUSTRY AS A RESULT OF THE NEW ACCORD WHICH IS DESCRIBED IN A REPORT EXPECTED TO BE RELEASED TODAY ANTITRUST OFFICIALS AT THE JUSTICE DEPARTMENT AND THE FEDERAL TRADE COMMISSION WILL CONSIDER THE PENTAGON'S VIEWS IN EVALUATING DEFENSEINDUSTRY MERGERS AND GIVE MORE CONSIDERATION TO THE PECULIAR CIRCUMSTANCES OF THE US DEFENSE MARKET SAID PEOPLE FAMILIAR WITH THE STUDY DEFENSE SECRETARY WILLIAM PERRY WHO REPEATEDLY HAS SAID THAT MUCH MORE CONSOLIDATION IS NEEDED IN THE DEFENSE INDUSTRY HAS ENDORSED THE REPORT THE PEOPLE SAID IT WILL HELP DEFINE FOR THE INDUSTRY AND FOR THE DEPARTMENT OF DEFENSE WHAT THE ANTITRUST ISSUES AND CONCERNS ARE SAID BERNARD SCHWARTZ CHAIRMAN AND CHIEF EXECUTIVE OF LORAL CORP A NEW YORK DEFENSE ELECTRONICS AND INFORMATION COMPANY MR SCHWARTZ WAS A MEMBER OF THE PANEL THAT PRODUCED THE 50PAGE REPORT THE GROUP ALSO INCLUDED REPRESENTATIVES OF THE JUSTICE DEPARTMENT THE FTC THE PENTAGON THE ANTITRUST BAR AND PUBLICINTEREST GROUPS THE PANEL WHOSE FINDINGS WERE UNANIMOUS WON'T CALL FOR LEGISLATIVE OR REGULATORY CHANGES IT ALSO EXPLICITLY WILL REJECT EXEMPTING THE DEFENSE INDUSTRY FROM ANTITRUST REGULATIONS BUT ITS REPORT DOES ARGUE THAT THE DEFENSE INDUSTRY ESPECIALLY IN ITS CURRENT PERIOD OF POSTCOLD WAR CONSOLIDATION SHOULD BE GIVEN SPECIAL CONSIDERATION BY REGULATORS IT MAINTAINS THAT DEFENSE IS DIFFERENT AND THAT CONVENTIONAL ANTITRUST POLICY SHOULD BE ADJUSTED SAID ONE PERSON FAMILIAR WITH THE REPORT THE MOST NOTABLE DIFFERENCE BETWEEN THE DEFENSE INDUSTRY AND OTHER SECTORS THE REPORT ARGUES IS THAT DEFENSE MERGERS HAVE IMPLICATIONS FOR NATIONAL SECURITY THAT AREN'T RAISED BY MOST INDUSTRIAL COMBINATIONS IN ADDITION THE REPORT NOTES THE DEFENSE DEPARTMENT IS AN EXTREMELY POWERFUL BUYER SO THE TRADITIONAL RATIONALE THAT ANTITRUST RULES ARE NEEDED TO PROTECT THE CONSUMER MAY NOT APPLY IN ALL DEFENSE SITUATIONS THE REPORT RECOMMENDS EXPANDING THE OFFICE OF THE PENTAGON'S GENERAL COUNSEL TO INCLUDE AN ANTITRUST OFFICE IT ALSO SAYS THE DEFENSE SECRETARY'S OFFICE SHOULD ESTABLISH A SMALL UNIT TO ANALYZE THE MILITARY IMPLICATIONS OF DEFENSEINDUSTRY ANTITRUST QUESTIONS LORAL'S MR SCHWARTZ SAID THAT WITH SUCH NEW CAPABILITIES THE PENTAGON SHOULD BE ABLE TO PROVIDE MORE RELIABLE GUIDANCE TO DEFENSE COMPANIES THAT ARE CONTEMPLATING ACQUISITIONS INDUSTRY LEADERS SUCH AS MR SCHWARTZ HAVE BEEN CONCERNED THAT ANTITRUST CONCERNS WILL POSE AN OBSTACLE FOR THE CONTINUING STRING OF BIG MERGERS OR ACQUISITIONS IN THE INDUSTRY ALTHOUGH THE BIGGEST DEALS HAVEN'T BEEN BLOCKED OR HAMPERED THESE INCLUDE LORAL'S 15 BILLION PURCHASE OF IBM CORP'S FEDERAL SYSTEMS UNIT EARLIER THIS YEAR NORTHROP CORP'S AGREEMENT TO PURCHASE GRUMMAN CORP EARLIER THIS MONTH A DEAL VALUED AT 217 BILLION AND MARTIN MARIETTA CORP'S 305 BILLION ACQUISITION OF GENERAL ELECTRIC CO'S AEROSPACE DIVISION LAST YEAR THE LARGEST DEFENSE COMBINATION IN RECENT YEARS ONE MEMBER OF THE STUDY GROUP WHICH WAS ESTABLISHED ABOUT SIX MONTHS AGO SAID ITS TALKS INITIALLY WERE CONFRONTATIONAL ONE SIDE ARGUED THAT NO CHANGES ARE NEEDED IN TRADITIONAL ANTITRUST CONSIDERATION OF DEFENSE MERGERS WHILE THE OTHER CONTENDED THAT THE CURRENT REGULATORY STRUCTURE IS INCAPABLE OF ADDRESSING THE UNIQUE SITUATION OF AN INDUSTRY THAT IS SHRINKING RAPIDLY YET WHOSE CONTINUED EXISTENCE IS OF DEEP INTEREST TO THE GOVERNMENT MONTHS OF DISCUSSION LED TO A CONSENSUS VIEW THAT THE PECULIAR CONCERNS OF THE PENTAGON AND THE INDUSTRY COULD BE ADDRESSED IF THE PENTAGON IS BETTER ABLE TO ARTICULATE THEM AND ANTITRUST REGULATORS ARE BETTER ABLE TO UNDERSTAND THEM JEFF COLE IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9404120038 940412 INTERNATIONAL BRIEF ECCO SA TEMPORARY SERVICES GROUP POSTS 10 INCREASE IN PROFIT FRENCH TEMPORARY EMPLOYMENT SERVICES GROUP ECCO SA PARIS SAID ITS GROUP NET PROFIT ADVANCED 10 LAST YEAR TO 2416 MILLION FRANCS 412 MILLION FROM 219 MILLION FRANCS ALTHOUGH THE GROUP IS HOLDING ITS ANNUAL NET DIVIDEND PAYOUT STEADY AT 10 FRANCS A SHARE IT IS PROPOSING A 1FOR4 FREE SHARE ISSUE REVENUES SLIPPED 47 TO 1247 BILLION FRANCS 213 BILLION WHILE PRETAX PROFIT FROM CONTINUING ACTIVITIES DECLINED 43 TO 5388 MILLION FRANCS DESPITE THE DROP IN REVENUE ECCO SAID THE GROUP'S INTERNATIONALIZATION AND PRODUCTIVITY EFFORTS THROUGHOUT HELPED IT ADVANCE NET GROUP PROFIT REVENUES IN TEMPORARY EMPLOYMENT SERVICES OUTSIDE OF FRANCE GREW LAST YEAR AS DID REVENUES FROM SECURITY AND CLEANING SERVICES ACTIVITIES THESE GAINS HELPED OFFSET A DROP IN RESULTS FROM ECCO'S FRENCH TEMPORARY EMPLOYMENT ACTIVITIES WHICH WERE HIT HARD BY THE COUNTRY'S ECONOMIC RECESSION 9404120037 940412 TECHNOLOGY & HEALTH FOUR HOSPITAL SUPPLIERS WILL LAUNCH COMMON ELECTRONIC ORDERING SYSTEM BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL FOUR MAJOR HOSPITAL SUPPLIERS ARE LAUNCHING A COMBINED EFFORT TO ENABLE HOSPITALS TO USE A STANDARDIZED ELECTRONIC ORDERING SYSTEM TO CUT DOWN THE PAPERWORK AND COSTS INVOLVED IN BUYING SUPPLIES THE INITIATIVE WHOSE PARTICIPANTS INCLUDE BAXTER INTERNATIONAL INC AIMS TO ESTABLISH A COMMON DATA COMMUNICATIONS STANDARD FOR BOTH HOSPITALS AND SUPPLIERS TO PROCESS ORDERS DELIVER PRICE AND PRODUCT INFORMATION AND MAKE PAYMENTS ELECTRONICALLY THE IDEA IS TO CUT DOWN ON PAPER PURCHASE ORDERS AND INVOICES IN MUCH THE SAME WAY INSURANCE COMPANIES ARE SEEKING TO REDUCE PAPER MEDICAL CLAIMS THIS WILL LEAD US TOWARD STANDARDIZATION OF PRACTICES SAID DAN BROWNING DIRECTOR OF ELECTRONIC DATA INTERCHANGE AT BAXTER DEERFIELD ILL ANYTIME YOU START STANDARDIZING THINGS YOU REDUCE COSTS ON THE CUSTOMER'S SIDE AND THE SUPPLIER'S SIDE A LARGE 500BED HOSPITAL SPENDS 30 TO 40 IN OVERHEAD EACH TIME IT PLACES AN ORDER ACCORDING TO TORREY BYLES OF BIS STRATEGIC DECISIONS A MARKET RESEARCH FIRM IN NORWELL MASS SUPPLIERS SPEND 24 TO 28 SIMPLY TO PROCESS AN ORDER ELECTRONIC DATA INTERCHANGE COULD REDUCE COSTS TO HOSPITALS TO ABOUT 12 AN ORDER AND TO JUST 32 CENTS FOR SUPPLIERS HE SAID THE EFFORT IS ONE OF SEVERAL SIMILAR PROJECTS UNDER WAY TO IMPROVE HOSPITAL EFFICIENCY THROUGH ELECTRONIC DATA INTERCHANGE OR EDI AN ELECTRONIC PROTOCOL ALREADY WIDELY USED BY MANUFACTURERS AND RETAILERS TO CONTROL INVENTORIES AND CARRY OUT TRANSACTIONS FOR INSTANCE TWO BIG HOSPITAL ASSOCIATIONS VOLUNTARY HOSPITALS OF AMERICA DALLAS AND PREMIER HEALTH ALLIANCE CHICAGO ARE DEVELOPING ELECTRONIC ORDERING TECHNOLOGY FOR THEIR MEMBERS SAID GARREN HAGEMEIER EXECUTIVE DIRECTOR OF HEALTHCARE EDI CORP A NOTFORPROFIT EDI USERS GROUP IN LITTLE ROCK ARK THE SUPPLIERS' INITIATIVE IS BEING ANNOUNCED TODAY IN ORLANDO FLA AT A MEETING OF HEALTHCARE EDI CORP CURRENTLY BAXTER AND OTHER LARGE VENDORS EACH HAVE PROPRIETARY SYSTEMS THAT ENABLE HOSPITALS TO PLACE ORDERS ELECTRONICALLY A HOSPITAL USUALLY HAS TO USE A DIFFERENT SYSTEM OFTEN WITH A DIFFERENT COMPUTER TERMINAL FOR EACH VENDOR IN ADDITION THE ORDERS ARE GENERALLY PROCESSED BY MAINFRAME COMPUTERS WHICH ARE EXPENSIVE TO MAINTAIN AND ONCE AN ORDER IS PLACED THE SYSTEMS TRIGGER THE LABORINTENSIVE PRODUCTION OF PAPER PURCHASE ORDERS AND INVOICES LARRY WARDEN DIRECTOR OF MATERIAL SERVICES AT ST FRANCIS HOSPITAL IN TULSA OKLA WHO HAS TESTED THE NEW SYSTEM SAID WHAT WE'RE TRYING TO DO IS GET EVERYONE ON A GENERIC INTERCHANGEABLE STANDARD SO WE DON'T HAVE SYSTEMS THAT ARE UNIQUE TO THE INDIVIDUAL VENDORS ESPECIALLY THE LARGE VENDORS IN ADDITION TO BAXTER EASTMAN KODAK CO ROCHESTER NY A SUPPLIER OF IMAGING PRODUCTS BOISE CASCADE CORP BOISE IDAHO A MARKETER OF OFFICE PRODUCTS AND BERGEN BRUNSWIG CORP ORANGE CALIF A PHARMACEUTICAL DISTRIBUTOR ARE INITIAL SPONSORS OTHER MAJOR SUPPLIERS ARE EXPECTED TO SIGN ON OFFICIALS SAID YOU CAN'T DO THIS WITH JUST ONE OR TWO SUPPLIERS BAXTER'S MR BROWNING SAID THE ONLY WAY IT WILL SUCCEED IS FOR EVERYONE TO GET INVOLVED THE PROJECT WILL RUN ON DESKTOPCOMPUTERS WITH SOFTWARE MARKETED BY TSI INTERNATIONAL SOFTWARE LTD WILTON CONN A CLOSELY HELD SUPPLIER OF EDI SOFTWARE SCHEDULED FOR RELEASE ON JULY 1 THE SOFTWARE INITIALLY WILL AUTOMATE PURCHASING FUNCTIONS LATER VERSIONS ARE EXPECTED TO INCLUDE ELECTRONIC INVOICES A CATALOG THAT WILL ENABLE HOSPITALS TO COMPARE PRICES OF COMPETING GOODS ONLINE AND ELECTRONIC PAYMENT ELIMINATING THE NEED TO CUT AND DEPOSIT CHECKS 9404120036 940412 TECHNOLOGY BRIEF DIGITAL EQUIPMENT CORP COMPUTER MAKER TO LAUNCH NEW MODEL IN ALPHA LINE DIGITAL EQUIPMENT CORP WILL UNVEIL A NEW COMPUTER IN ITS ALPHA LINE USING A DESIGN APPROACH THAT IS SHARPLY DIFFERENT FROM THE COMPANY'S PAST EFFORTS ANALYSTS SAID THE NEW SYSTEM CALLED A SERVER BECAUSE IT LINKS MANY DESKTOP COMPUTERS TOGETHER IN A NETWORK OFFERS THE POWER OF A WORKSTATION OR LARGER MINICOMPUTER YET IS DESIGNED LIKE A PERSONAL COMPUTER USING STANDARD PARTS AND MANUFACTURING TECHNIQUES ANALYSTS ALSO SAID IT APPEARS AGGRESSIVELY PRICED THE 2100 LINE STARTS AT 18900 AND CAN RUN MULTIPLE SOFTWARE OPERATING SYSTEMS INCLUDING MICROSOFT CORP'S WINDOWS NT AND UNIX THE MAYNARD MASS COMPUTER COMPANY ALSO IS EXPECTED TO UNVEIL SOFTWARE THAT ALLOWS GROUPS OF COMPUTERS RUNNING UNIX SOFTWARE TO WORK TOGETHER THIS TECHNIQUE CLUSTERING HELPED FUEL SALES OF DIGITAL'S OLD VAX LINE 9404120035 940412 INTERNATIONAL RUSSIA'S FLAP WITH UKRAINE GROWS HOTTER BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE STANDOFF BETWEEN RUSSIA AND UKRAINE OVER THE FORMER SOVIET BLACK SEA FLEET HAS DEGENERATED INTO UGLY BRAWLING THE ESCALATION OF THEIR DISPUTE BEGAN FRIDAY IN THE BLACK SEA PORT OF ODESSA WHEN A PRORUSSIAN SHIP FROM THE BLACK SEA FLEET AN OCEAN RESEARCH VESSEL CALLED THE CHELEKEN TOOK ONBOARD SOME NAVIGATIONAL EQUIPMENT CLAIMED BY UKRAINE AND SET SAIL FOR BLACK SEA FLEET HEADQUARTERS IN THE UKRAINIAN PORT OF SEVASTOPOL UKRAINIAN SERVICEMEN TRIED TO PREVENT THE CHELEKEN FROM MAKING OFF WITH THE EQUIPMENT THEY WERE THWARTED BY 30 RUSSIAN SERVICEMEN BRANDISHING GUNS ACCORDING TO THE UKRAINIAN NAVY COMMAND IN RESPONSE UKRAINE MOBILIZED FIGHTER PLANES FOR MANEUVERS OVER SEVASTOPOL ACCORDING TO THE BLACK SEA FLEET PRESS SERVICE THEY DIDN'T ATTACK THOUGH AND THE CHELEKEN REPORTEDLY ARRIVED SAFELY SATURDAY IN SEVASTOPOL TENSION ROSE FURTHER SUNDAY HOWEVER WHEN UKRAINIAN SERVICEMEN SEIZED CONTROL OF A BLACK SEA FLEET FACILITY IN ODESSA HARBOR AND ARRESTED THREE PRORUSSIAN OFFICERS DETAILS SURROUNDING UKRAINE'S SEIZURE OF THE BASE AT ODESSA ARE STILL IN DISPUTE A SPOKESMAN FOR THE BLACK SEA FLEET ANDREI GRACHEV TOLD RUSSIA'S INTERFAX NEWS AGENCY THAT 120 UKRAINIAN COMMANDOS STORMED THE BASE TAKING CONTROL OF A NUMBER OF BLACK SEA FLEET SHIPS MOTHBALLED THERE AND IN THE PROCESS BEATING UP SOME CIVILIANS UKRAINE'S DEFENSE MINISTRY ON MONDAY DENOUNCED THIS ACCOUNT AS A LIE AND SAID THE TAKEOVER OF THE BASE AT ODESSA HAD BEEN DONE PEACEFULLY IN RETRIBUTION FOR THE BLACK SEA FLEET'S PIRATICALLY STEALING AND TRANSPORTING EXPENSIVE NAVIGATIONAL EQUIPMENT FROM ODESSA THE BLACK SEA FLEET HAS BEEN A CORROSIVE ISSUE BETWEEN RUSSIA AND UKRAINE SINCE THE SOVIET COLLAPSE IN 1991 LEFT THE FLEET'S 300 SHIPS 70000 PERSONNEL AND HEFTY SHORE FACILITIES IN JURISDICTIONAL LIMBO THOUGH BOTH COUNTRIES ARE SUPPOSED TO BE FUNDING THE FLEET A POSTSOVIET ECONOMIC MELTDOWN HAS LEFT UKRAINE EVEN LESS ABLE THAN RUSSIA TO SHOULDER ITS SHARE AND THOUGH THE FLEET HAS HEADQUARTERS IN UKRAINE MANY OF ITS SHIPS HAVE IN THE PAST YEAR HOISTED RUSSIA'S PREREVOLUTIONARY BLUEONWHITE ST ANDREW'S FLAG AS A SIGN OF LOYALTY TO RUSSIA THESE LATEST SPARKS BETWEEN RUSSIA AND UKRAINE ARE FLYING INTO AN ATMOSPHERE PRIMED FOR POLITICAL COMBUSTION IT WAS THE SECESSION OF UKRAINE IN 1991 THAT CATALYZED THE BREAKUP OF THE SOVIET UNION AND AS RUSSIA SEEKS DISTRACTION FROM ITS DOMESTIC MISERIES WITH RESURGENT IMPERIAL DREAMS THERE ARE PARTS OF UKRAINE THAT RUSSIA WOULD BE PLEASED TO HAVE BACK PRIME AMONG THESE IS THE CRIMEAN PENINSULA SITE OF SEVASTOPOL AND IN SOME PARTS OF UKRAINE ESPECIALLY CRIMEA PEOPLE WEARY OF AN UNREFORMED ECONOMY THAT MAKES EVEN RUSSIA'S LOOK GOOD HAVE INCREASINGLY BEGUN TO FAVOR SOME FORM OF REUNION WITH RUSSIA SOME ARE CALLING FOR ECONOMIC REINTEGRATION ALONG THE EASTERN UKRAINIANRUSSIAN BORDER FOR EXAMPLE AND THE SEMIAUTONOMOUS REGION OF CRIMEA IN DEFIANCE OF UKRAINE'S GOVERNMENT IN KIEV ELECTED IN JANUARY A PRORUSSIAN PRESIDENT FOR THE PENINSULA YURI MESHKOV PRORUSSIAN SENTIMENT ON CRIMEA WHICH WAS RUSSIAN TERRITORY BEFORE SOVIET PREMIER NIKITA KHRUSHCHEV GAVE IT TO UKRAINE IN 1954 WAS REAFFIRMED BY THE RECENT PARLIAMENTARY ELECTIONS AS WELL AS A CRIMEAN REFERENDUM ON CLOSER TIES TO RUSSIA ALSO HELD IN DEFIANCE OF KIEV IN THE LARGELY NATIONALIST WESTERN UKRAINE AND IN KIEV THE CAPITAL HOWEVER UKRAINIANS INCLUDING PRESIDENT LEONID KRAVCHUK HAVE SAID THERE WILL BE NO CONCESSION OF TERRITORY TO RUSSIA THE CURRENT QUARREL IN ODESSA OVER BLACK SEA FLEET ACTIVITIES UNDERSCORES THE DANGER THAT THESE GROWING DISAGREEMENTS COULD FLARE INTO OPEN CONFLICT IN WHAT WAS PRESUMABLY AN EFFORT TO DEFUSE TENSION OVER THE BLACK SEA FLEET MR KRAVCHUK AND RUSSIAN PRIME MINISTER VIKTOR CHERNOMYRDIN CONFERRED BY TELEPHONE MONDAY EVENING ACCORDING TO RUSSIA'S ITARTASS NEWS SERVICE BUT EVEN IF THE FRACAS IS QUELLED FOR NOW POLITICAL ANALYSTS WARN THAT THE FRICTIONS THAT PRODUCED THE CHELEKEN INCIDENT ARE FAR FROM RESOLVED 9404120034 940412 ECONOMY ENERGY USE TO RISE SHARPLY REPORT INDICATES IEA EXPECTS WORLD GAINS THROUGH 2010 BUT SAYS GROWTH FOR OIL WILL LAG BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE INTERNATIONAL ENERGY AGENCY IN AN UPDATED PROJECTION OF ENERGY AND OIL DEMAND THROUGH THE YEAR 2010 FORECAST THAT WORLD ENERGY USE WILL GROW AT A STRONG ANNUAL RATE OF 21 BUT THAT OIL CONSUMPTION WILL RISE MORE SLOWLY BY 2010 ACCORDING TO THE IEA'S NEW WORLD ENERGY OUTLOOK SCHEDULED FOR RELEASE AT A TOKYO NEWS CONFERENCE TODAY THE WORLD WILL BE CONSUMING 48 MORE ENERGY THAN IN 1991 THE BASE YEAR FOR THE AGENCY'S FORECAST LAST YEAR ENERGY DEMAND WAS FLAT BECAUSE OF A WEAK WORLD ECONOMY THE PARISBASED IEA IS THE ENERGY AGENCY FOR THE WESTERN NATIONS THAT MAKE UP THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT OR OECD IT COMMEMORATES ITS 20TH ANNIVERSARY TODAY AT A SEMINAR IN TOKYO HOSTED BY THE JAPANESE GOVERNMENT THE AGENCY'S LATEST LONGTERM ESTIMATE OF ENERGY DEMAND USES A REFERENCE CASE FOR FUTURE OIL PRICES THAT ARE 2 A BARREL LESS THAN FORECAST IN LAST YEAR'S ENERGY OUTLOOK THE NEW PROJECTIONS ARE BASED ON AN ASSUMED AVERAGE OF 17 IN CONSTANT 1993 DOLLARS FOR OIL IMPORTED BY IEA MEMBER NATIONS IN 1994 AND 1995 THE ESTIMATED PRICE THEN RISES TO 28 A BARREL BY 2005 AFTER WHICH IT REMAINS FLAT THAT COMPARES WITH LAST YEAR'S IEA FORECAST OF 30 BY 2005 DESPITE EXPECTATIONS THAT FUTURE PRICES WILL BE SLIGHTLY LOWER THAN PREVIOUSLY PROJECTED OIL'S PERCENTAGE OF ENERGY CONSUMED WILL CONTINUE TO SHRINK THE IEA SAID THE SHARE OF OIL IN THE ENERGY MIX OF THE OECD COUNTRIES IS EXPECTED TO DECLINE FROM ABOUT 42 IN 1991 TO ABOUT 38 IN 2010 THE AGENCY SAID IT ADDED THAT THE WORLD SHARES OF NATURAL GAS AND SOLID FUELS SUCH AS COAL WILL SHOW GAINS AT THE EXPENSE OF BOTH OIL AND NUCLEAR POWER BUT IT NOTED THAT ELECTRICITY IS THE MOST RAPIDLY GROWING FORM OF FINAL ENERGY STILL THE IEA SAID OIL REMAINS THE MOST SIGNIFICANT SINGLE CONTRIBUTOR TO WORLD ENERGY IN THE OECD NATIONS WHERE A GRADUAL DECLINE IN TOTAL PRODUCTION IS EXPECTED TO CONTINUE OIL IMPORTS COULD ACCOUNT FOR CLOSE TO 70 OF OIL DEMAND BY 2010 THE IEA NOTED THIS REPRESENTS A RISE IN OIL IMPORTS OF SOME NINE MILLION BARRELS PER DAY AN INCREASE WHICH WILL LIKELY HAVE TO BE MET PRIMARILY BY THE MAJOR MIDDLE EAST PRODUCERS AND VENEZUELA THE IEA SAID ALSO THE IEA EXPECTS DEMAND FOR BOTH OIL AND OTHER ENERGY TO GROW MUCH FASTER IN COUNTRIES OUTSIDE THE OECD IN THOSE COUNTRIES PARTICULARLY IN CHINA AND THE DYNAMIC ECONOMIES OF EAST ASIA GROWTH IN ENERGY USE COULD BE MORE THAN 4 PER ANNUM ON AVERAGE OVER THE OUTLOOK PERIOD THE AGENCY SAID ECONOMIC GROWTH WILL BE EVEN STRONGER THAN THAT FOR ENERGY DEMAND ACCORDING TO THE IEA WORLD GDP GROSS DOMESTIC PRODUCT IS EXPECTED TO BE MORE THAN 70 HIGHER IN 2010 THAN IT WAS IN 1991 THE IEA SAID IT IS THIS UNDERLYING ASSUMPTION OF ECONOMIC GROWTH WHICH MORE THAN ANY OTHER FACTOR IS THE REASON FOR THE INEXORABLE INCREASE IN ENERGY DEMAND 9404120033 940412 HEARD ON THE STREET CHEWEDUP FOODFIRM STOCKS ARE ON MENU FOR ANALYSTS WARY OF FURTHER MARKET SLIDES BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOOD STOCKS LOOK AWFULLY TEMPTING TO SOME MONEY MANAGERS BEARS MAY BE ROAMING WALL STREET CHEWING UP ONE COMPANY AFTER ANOTHER BUT THEY HAVE ALREADY FEASTED ON FOOD PROCESSORS SUCH AS HJ HEINZ AND QUAKER OATS THEREIN LIES THE ATTRACTION MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER & CO THINKS NERVOUS MONEY MANAGERS WILL TURN TO FOOD STOCKS BECAUSE THESE STOCKS ARE ALREADY SO BEATEN DOWN THAT THEY ARE LIKELY TO HOLD UP BETTER IF THE STOCK MARKET RESUMES ITS SLIDE I BELIEVE YOU'LL GET GOOD RELATIVE PERFORMANCE FROM THE GROUP OVER THE NEXT FEW MONTHS MR METZ SAYS I KNOW THE ERA OF PRICING POWER AND BRAND NAMES IS MEANT TO BE OVER BUT AT DEEP DISCOUNTS TO THE MARKET I THINK THEY'RE RELATIVELY ATTRACTIVE FOOD STOCKS HAVE SOLD OFF AS INVESTORS WORRY THAT BRANDNAME FOOD PRODUCTS CAN NO LONGER COMMAND PREMIUM PRICES BUT CHRISTOPHER WILES MANAGER OF THE 130 MILLIONINASSETS LIBERTY EQUITY INCOME FUND THINKS FOOD COMPANIES ARE ADJUSTING TO THE COMPETITION FROM NONAME ALTERNATIVES HE IS SCRUTINIZING COMPANIES SUCH AS CAMPBELL SOUP HEINZ AND HERSHEY FOODS THESE COMPANIES WITH VERY STRONG BRAND NAMES ARE LEARNING TO WORK WITH LOWER COSTS SO THAT THEY CAN COMPETE HE SAYS THE DOWNSIDE RISK IN THESE NAMES IS VERY LIMITED HERE THE VALUATIONS ARE GETTING TOO HARD TO IGNORE NOT EVERYBODY IS RUSHING TO BUY FOOD STOCKS RICHARD HOEY MANAGER OF THE 15 BILLION DREYFUS GROWTH & INCOME FUND CONCEDES THAT FOOD STOCKS MAY DO BETTER IF THE MARKET FALLS FURTHER BUT HE DOESN'T SEE THAT AS A BIG VIRTUE THE APPEAL OF LOSING MONEY MORE SLOWLY IS NOT VERY GREAT MR HOEY SAYS TO BUY THESE STOCKS YOU NEED SOME CONVICTION THAT YOU'RE GOING TO MAKE MONEY A LOT OF THE FOOD STOCKS ARE OKAY BUT NOT TERRIBLY EXCITING I'D RATHER OWN A MIX OF TREASURY BILLS AND MOREAGGRESSIVE STOCKS SO I HAVE SOME POTENTIAL UPSIDE BUT OTHER STOCKPICKERS THINK THAT CONCERNS ABOUT BRANDNAME PRODUCTS ARE ALREADY FULLY REFLECTED IN FOODCOMPANY STOCK PRICES THEY ARGUE THAT CONSUMERS WILL LOOK MORE FONDLY ON BRANDNAME FOODS AS THE ECONOMY RECOVERS AND INCOMES RISE FOOD STOCKS WERE HOT IN 1991 SOARING MORE THAN 41 AS MEASURED BY THE FOOD INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX BUT SINCE THEN THE STOCKS HAVE SLUMPED FALLING MORE THAN 15 BETWEEN THE END OF 1991 AND MARCH 31 OF THIS YEAR THE DOW JONES INDUSTRIAL AVERAGE GAINED ALMOST 15 IN THE SAME STRETCH WITH FOOD STOCKS SO DEPRESSED THE COMPANIES ARE STARTING TO ATTRACT SOME BARGAINHUNTING MONEY MANAGERS MARINA CARLSON COMANAGER OF THE STRONG OPPORTUNITY FUND FAVORS QUAKER OATS THE CHICAGO MAKER OF CEREALS PET FOOD AND GATORADE FOR SOME REASON PEOPLE DON'T LIKE QUAKER OATS SHE SAYS THEY CONSIDER IT A SECONDTIER COMPANY SOME ANALYSTS FEAR THAT PEPSICO AND COCACOLA'S ENTRY INTO THE SPORTSDRINK MARKET WILL CRIMP SALES OF GATORADE WHICH IS AN IMPORTANT SOURCE OF PROFITS FOR QUAKER OATS BUT MS CARLSON DOESN'T THINK THE FEARS ARE JUSTIFIED I DON'T SEE COKE AND PEPSI BEING A THREAT YET SHE SAYS MS CARLSON FIGURES THAT QUAKER OATS HAS A VALUE OF 92 A SHARE BASED ON ITS BREAKUP VALUE AS A RESULT WE FELT YOU COULD SEE QUAKER OATS IN THE LOW TO MID70S SHE SAYS THE STOCK CLOSED YESTERDAY AT 62 5/8 UP 1/4 CHARLES MAYER COMANAGER OF THE 4 BILLION INVESCO INDUSTRIAL INCOME FUND IS BETTING ON CPC INTERNATIONAL AND HEINZ CPC MAKES KNORR SOUPS HELLMANN'S MAYONNAISE AND MAZOLA CORN OIL HEINZ HELPS FOLKS PUT ON WEIGHT WITH BAKED BEANS AND OREIDA FRENCH FRIES AND HELPS THEM TAKE IT OFF AGAIN WITH ITS WEIGHT WATCHERS PROGRAMS THE COMPANY'S STOCK YIELDS AROUND 4 IN DIVIDENDS HEINZ HAS SOME YIELD SUPPORT AND IT HAS SOME UPSIDE POTENTIAL BASED ON A RECOVERY IN EUROPE AND A RECOVERY IN WEIGHT WATCHERS MR MAYER SAYS AND I THINK THAT CPC IS THE BEST GROWTH COMPANY IN THE FOOD GROUP CPC WHICH CLOSED YESTERDAY AT 46 5/8 UP 7/8 TRADES AT LESS THAN 13 TIMES STREET EARNINGS FORECASTS OF 362 A SHARE FOR 1995 ANALYSTS ARE LOOKING FOR CPC'S EARNINGS TO GROW AT 11 ANNUALLY IN THE NEXT FEW YEARS BUT MR MAYER THINKS CPC WILL DO BETTER THAN ANALYSTS EXPECT I THINK THE GROWTH RATE IS HIGHER THAN 11 HE SAYS I THINK IT'S MORE LIKE 13 IT'S ONE OF THE FEW FOOD STOCKS THAT SELLS AT A MULTIPLE THAT MATCHES ITS GROWTH RATE 9404120032 940412 MORGAN STANLEY BADLY BRUISED REVAMPS ITS OPERATIONS CULTURE BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR MUCH OF THE 1980S BLUECHIP WHITESHOE BANKER MORGAN STANLEY GROUP INC SAT COMFORTABLY IN THE TOP FIVE IN THE WORLD IN INVESTMENT BANKING IT RESTED ON A STERLING REPUTATION ITS MERGERS EXPERTISE AND A CHERISHED ROLE AS THE LOWKEY BANKER OF CHOICE FOR SEVERAL FOREIGN NATIONS' CENTRAL BANKS THAT'S OVER QUIET CLASSY MORGAN STANLEY IS A COMPANY UNDER ATTACK ITS CLIENTS ARE BEING COURTED ITS TALENT IS BEING RAIDED AND IN 1993 THE MOST LUCRATIVE YEAR IN WALL STREET'S HISTORY MORGAN'S TAKE FROM ITS CORE BUSINESS OF INVESTMENT BANKING SLID FOUR QUARTERS IN A ROW LAST JUNE IT LOST MERGERS SUPERSTAR ROBERT F GREENHILL TO TRAVELERS INC'S SMITH BARNEY SHEARSON UNIT WHEN HE WALKED OUT HE TOOK WITH HIM NOT ONLY TOPTIER CLIENT VIACOM INC BUT A DOZEN INVESTMENT BANKERS A GROUP NOW BITTERLY REFERRED TO AT MORGAN AS BOB AND THE BRANCH DAVIDIANS A REFERENCE TO WACO TEXAS CULT LEADER DAVID KORESH AND HIS DOOMED FOLLOWERS NOW MORGAN STANDS AT SEVENTH PLACE IN WALL STREET'S CLOSELY WATCHED UNDERWRITING RANKINGS ITS 67 SHARE OF THE STOCK AND BOND UNDERWRITING MARKET ABOUT ONETHIRD OF WHAT IT WAS IN THE EARLY '80S WHAT WENT WRONG RIVALS BLAME MORGAN'S STOPANDSTART EXPANSION AND INVESTMENT IN ASIA AN UPPERCRUST STODGINESS WHEN IT CAME TO FIGHTING HARD FOR MARKET SHARE AND A CORPORATE HISTORY OF POLITICAL INFIGHTING SOME MORGAN OFFICIALS STUNNED BY THE INROADS COMPETITORS HAVE MADE AGREE NOW THE COMPANY HAS LAUNCHED AN OVERHAUL OF HOW ITS OPERATIONS WORK TOGETHER AND MORE IMPORTANT OF ITS CORPORATE CULTURE SAYS MORGAN PRESIDENT JOHN J MACK IT HAS GONE ON ONE OF WALL STREET'S BIGGEST HIRING BINGES IT HAS PURCHASED A HUGE 176 MILLION OFFICE BUILDING A BARGAIN PRICE BECAUSE IT BORDERS NEW YORK'S SEEDY TIMES SQUARE DISTRICT TO COMBINE MORGAN OPERATIONS SCATTERED ALL OVER NEW YORK WITH ELABORATE NEW PERFORMANCE REVIEWS THAT DOCK BANKERS FOR INTERNAL TURF WARS THE FIRM CLAIMS IT'S WELL ON ITS WAY BACK TO DOMINANCE OF THE WORLD MARKETS OUR GOAL SAYS MR MACK IS TO BE THE NO 1 GLOBAL INVESTMENT BANK WHETHER OR NOT MORGAN SUCCEEDS DEPENDS TO SOME EXTENT UPON MR GREENHILL THE FORMER MORGAN PRESIDENT THE FIRM IS STILL STINGING FROM THE DEFECTION OF THE WELLCONNECTED BANKER A 31YEAR MORGAN VETERAN TO SMITH BARNEY WHEN HE LOST OUT TO MR MACK IN A BATTLE FOR CONTROL OF THE COMPANY THE PARTING WASN'T AMICABLE AND IT HAS STAYED THAT WAY AT A NEWS CONFERENCE LAST JUNE A BEAMING MR GREENHILL TOLD REPORTERS THAT TRAVELERS CHAIRMAN SANFORD WEILL HAD GIVEN HIM THE CHANCE TO BUILD THE FIRM OF TOMORROW WITHIN A MONTH MR GREENHILL DUMPED 884863 SHARES OF MORGAN STOCK HE GOT ABOUT 70 A SHARE FOR A TOTAL OF ABOUT 61 MILLION THE STOCK HIT A RECORD HIGH OF 89625 IN SEPTEMBER AND CLOSED YESTERDAY AT 66375 UP 875 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FOLLOWING MR GREENHILL TO SMITH BARNEY WERE ROBERT LESSIN AND MICHAEL LEVITT BANKERS TO HENRY KRAVIS HEAD OF THE POWERFUL BUYOUT FIRM KOHLBERG KRAVIS ROBERTS & CO MR GREENHILL SHORTLY WENT ON TO THE BIGGEST MERGER SO FAR OF THE DECADE THE COLOSSAL VIACOMPARAMOUNT COMMUNICATIONS INC DEAL WHICH REPORTEDLY EARNED SMITH BARNEY MORE THAN 25 MILLION IN FEES HE LATER ELBOWED SMITH BARNEY IN AS COMANAGER ON A DEAL FOR LONGTIME MORGAN CLIENT RJR NABISCO AND INTO KEENLY SOUGHT OFFERINGS FOR TOSCO CORP AND PLAYTEX CORP ROBERT MATSCHULLAT MORGAN'S HEAD OF INVESTMENT BANKING SAYS WE'RE HUGE AND THE AMOUNT OF BUSINESS WE'VE LOST TO THEM IS TINY NONETHELESS SMITH BARNEY'S BOTTOMLINE PITCH TO CLIENTS HAS BEEN THAT IT UNLIKE MORGAN HAS A HUGE NETWORK OF RETAIL BROKERS TO SELL A CLIENT'S SECURITIES FEELINGS GOT SO STRAINED BETWEEN MORGAN AND SMITH BARNEY THAT LATE LAST SUMMER MORGAN CHAIRMAN RICHARD FISHER CALLED MR WEILL AND ACCORDING TO PEOPLE FAMILIAR WITH THE CONVERSATION ASKED HIM TO BACK OFF FROM THE CLIENT AND TALENT RAIDING BOTH MEN DECLINE TO DISCUSS THE CONVERSATION NONETHELESS THE BATTLE HAS CONTINUED TO THE TUNE OF ABOUT 15 DEFECTIONS SO FAR YOU'VE GOT SELECTIVE BREEDING GOING ON THE PART OF SMITH BARNEY SAYS PETER GONYE OF EGON ZEHNDER INTERNATIONAL AN EXECUTIVERECRUITMENT FIRM SHEER NUMBERS OF MORGAN DEFECTIONS WOULD CHARACTERIZE IT AS AGGRESSIVE AND IN SHEER NUMBERS IT'S CLEAR IT HAS BEEN A SUCCESS IN RECENT WEEKS SMITH BARNEY HAS HIRED AWAY VETERAN BANKERS ROBERT A JEFFE HEAD OF MORGAN'S GLOBAL NATURALRESOURCES GROUP THOMAS K BARBER ITS HEAD BANKER IN CANADA AND STEPHEN STONEFIELD WHO HAD BEEN A MANAGING DIRECTOR OF EQUITYCAPITAL MARKETS WE'RE HELPING THEM WITH THEIR OVERHEAD WRYLY OBSERVES ONE TRAVELERS OFFICIAL MORGAN STANLEY HAS FILLED THE EMPTY BANKER SLOTS WITH A HANDFUL OF HIGHPROFILE HIRES MOST NOTABLY IT WON THE BATTLE FOR JOSEPH PERELLA FORMER PRESIDENT AND COFOUNDER OF WASSERSTEIN PERELLA & CO MR FISHER SAYS MR PERELLA WAS A MAJOR FACTOR IN RECENTLY WINNING BACK CLIENT TIME WARNER INC WHICH HAD ESSENTIALLY BLACKBALLED MORGAN YEARS AGO WHEN THE FIRM HAD SERVED AS ADVISER TO PARAMOUNT NOW MR PERELLA'S GROUP IS STRUCTURING TIME WARNER'S POISON PILL A DEFENSE TACTIC DESIGNED TO MAKE HOSTILE TAKEOVERS PROHIBITIVELY EXPENSIVE AND LAST WEEK GARY PARR MR PERELLA'S SUCCESSOR AS PRESIDENT AT WASSERSTEIN PERELLA ALSO JUMPED SHIP TO MORGAN THE HIRES WERE PART OF WHAT WALL STREET EXECUTIVE RECRUITERS TERM ONE OF THE BIGGEST HIRING BINGES ON WALL STREET MORGAN HAS ADDED 1200 WORKERS SINCE LATE 1991 BRINGING ITS TOTAL WORK FORCE TO 8200 MOST OF THE EMPLOYEES WERE ADDED OVERSEAS IN PERHAPS THE SAVVIEST OF MORGAN'S CHANGES A HUGE COMMITMENT TO GLOBAL BANKING IN FACT THE SAME STRENGTHS THAT MADE THE FIRM SO SUCCESSFUL IN THE 1980S STRONG DIVISIONS GIVEN FREE REIN BACKFIRED WHEN GLOBAL CAPITALRAISING BECAME WALL STREET'S MAJOR BUSINESS THIS DECADE SAYS CARTER MCCLELLAND WHO RAN CORPORATE FINANCE THEN AND NOW IS MANAGING DIRECTOR OF FINANCE OPERATIONS AND ADMINISTRATION THERE WAS DECISIONMAKING GRIDLOCK HE SAYS WHEN WE ASKED WHERE DO WE WANT TO BE IN GERMANY IN FIVE YEARS' EACH DIVISION HAD A DIFFERENT ANSWER NO MORE ON THE INTERNATIONAL FRONT AT LEAST MORGAN'S OVERHAUL IS ALREADY REAPING RESULTS IN 1993 THE FIRM GOT 45 OF ITS INCOME FROM OVERSEAS OPERATIONS AND IN THE SEGMENTS OF THE US UNDERWRITING BUSINESS HOSPITABLE TO FOREIGN ISSUERS ITS MARKET SHARE IS PICKING UP THE COMPANY HAS OPENED MOSCOW SHANGHAI AND BOMBAY OFFICES IN ADDITION TO ALL THE STANDARD WALL STREET OVERSEAS POSTS AND HAS BEEFED UP RESEARCH AND DERIVATIVES TRADING TO SUPPORT AN INTERNATIONAL SECURITIES BUSINESS TELLINGLY EXECUTIVES AT POWERHOUSE GOLDMAN SACHS & CO SAY THAT IN SOME SOCALLED EMERGING NATIONS MORGAN IS NOW GOLDMAN'S BIGGEST THREAT THE FIRM'S INTERNATIONAL DIVERSIFICATION IS A MAJOR REASON ALONG WITH MORGAN'S HISTORICALLY ABOVEAVERAGE RETURN ON COMMON EQUITY THAT SOME WALL STREET ANALYSTS HAVE MAINTAINED A BUY RECOMMENDATION ON ITS STOCK EVEN AS THEY HAVE SOURED ON THE US BROKERAGE INDUSTRY EVEN SMITH BARNEY'S OWN STOCKRESEARCH DEPARTMENT SAYS WITH THE CAVEAT THAT IT'S A HIGHRISK PREDICTION MORGAN STANLEY IS LIKELY TO OUTPERFORM THE MARKET 9404120031 940412 WHAT'S NEWS BUSINESS AND FINANCE THE PENTAGON AND ANTITRUST REGULATORS REACHED AN INFORMAL UNDERSTANDING THAT COULD MAKE IT SUBSTANTIALLY EASIER FOR MERGERS TO OCCUR IN THE DEFENSE INDUSTRY UNDER THE ACCORD WHICH IS DESCRIBED IN A REPORT EXPECTED TO BE RELEASED TODAY ANTITRUST REGULATORS WILL CONSIDER THE PENTAGON'S VIEWS IN EVALUATING DEFENSEINDUSTRY MERGERS AND GIVE MORE CONSIDERATION TO THE PECULIAR CIRCUMSTANCES OF THE US DEFENSE MARKET WORLD ENERGY USE WILL GROW AT A STRONG ANNUAL RATE OF 21 THROUGH THE YEAR 2010 BUT OIL CONSUMPTION WILL RISE MORE SLOWLY ACCORDING TO AN INTERNATIONAL ENERGY AGENCY FORECAST TEXACO AND THREE OTHER OIL GIANTS FORMED A COMPANY TO EXPLORE AND DEVELOP HUGE FIELDS BENEATH THE ISOLATED TUNDRA OF RUSSIA'S ARCTIC CIRCLE MACY'S BANKS AND CREDITOR FIDELITY INVESTMENTS INTEND TO PROPOSE A RIVAL REORGANIZATION PLAN THAT WOULD BE MUCH STINGIER TO BONDHOLDERS THAN THE OUTLINE THAT WAS SUBMITTED BY MACY MINNESOTA MINING AGREED TO PAY 325 MILLION TO JOIN A GLOBAL SETTLEMENT OF BREASTIMPLANT LAWSUITS FOUR OTHER FIRMS ALSO AGREED TO PAY A COMBINED 171 MILLION TO JOIN THE DEAL RAISING THE SETTLEMENT FUND TO OVER 4 BILLION STRIKING PRESTON TRUCKING WORKERS AGREED TO RETURN AFTER THE COMPANY WITHDREW FROM A MANAGEMENT GROUP AT ODDS WITH THE TEAMSTERS IN A WEEKOLD STRIKE MEANWHILE THE SMALLER CHURCHILL TRUCK SHUT ITS DOORS XEROX PLANS TO UNVEIL NEXT WEEK AN INNOVATIVE SOFTWARE SYSTEM THAT LETS COMPUTERS AND COPIERS INTERACT MCDONNELL DOUGLAS IS EXPECTED TO ANNOUNCE THAT IT HAS WON A 400 MILLION AGREEMENT TO LAUNCH 40 SATELLITES FOR THE IRIDIUM MOBILEPHONE SYSTEM FOUR MAJOR HOSPITAL SUPPLIERS ARE LAUNCHING AN EFFORT TO LET HOSPITALS USE A STANDARDIZED ELECTRONIC ORDERING SYSTEM TO CUT DOWN THE PAPERWORK AND COSTS INVOLVED IN BUYING SUPPLIES BEAR STEARNS HIRED EXFED GOVERNOR WAYNE ANGELL TO BECOME ITS CHIEF ECONOMIST AMID THE STEEPEST BONDMARKET PLUNGE IN SEVEN YEARS PROFITSHARING CAN HELP PRODUCTIVITY APPRECIABLY GIVEN THE RIGHT CONDITIONS SOME NEW RESEARCH SUGGESTS STILL OTHERS CONTEND THAT THE LINKS BETWEEN PROFITSHARING PRODUCTIVITY AND PROFITABILITY ARE OFTEN MURKY AT BEST PRECIOUSMETALS FUTURES PLUNGED AS PART OF ANOTHER SELLOFF BY COMMODITY FUNDS AND MONEY MANAGERS DISCOUNT BROKER JACK WHITE PLANS TO OFFER 24HOUR TRADING IN MUTUAL FUNDS THE ORDER MATCHING SERVICE WOULD LET INVESTORS BUY OR SELL FUND SHARES ABOVE OR BELOW NET ASSET VALUE AS LONG AS THERE IS SOMEONE WILLING TO TAKE THE OTHER SIDE OF THE TRADE MICROSOFT IS EXPECTED TO ANNOUNCE TODAY THAT IT IS ABANDONING ITS PARTNERSHIP WITH SYBASE A LEADING MAKER OF HIGHEND DATABASE SOFTWARE CHARGES OF WIDESPREAD INVESTMENT FRAUD IN THE WIRELESSCOMMUNICATIONS INDUSTRY RESULTED IN A SERIES OF RAIDS BY SEVERAL STATES LAST WEEK THE RAIDS WERE CARRIED OUT IN SOUTHERN CALIFORNIA AND ATLANTA AGAINST MORE THAN HALF A DOZEN TELEMARKETING OPERATIONS THAT WERE SELLING WIRELESS INVESTMENTS BONDS LEHMAN BROTHERS TREASURY INDEX 512612 UP 1074 COMMODITIES OIL 1587 A BARREL UP 30 CENTS DOW JONES FUTURES INDEX 13738 OFF 150 SPOT INDEX 13070 OFF 040 DOLLAR 10345 YEN OFF 17 17120 MARKS OFF 00005 9404120030 940412 BUSINESS BRIEF CPC INTERNATIONAL INC FIRSTQUARTER NET ROSE 85 AS REVENUE INCREASED 62 CPC INTERNATIONAL INC SAID IT POSTED AN 85 INCREASE IN FIRSTQUARTER NET INCOME BENEFITING FROM SOLID OPERATING GAINS AND LOWER FINANCING COSTS THE ENGLEWOOD CLIFFS NJ FOOD COMPANY SAID NET ROSE TO 981 MILLION OR 63 CENTS A SHARE FROM 904 MILLION OR 58 CENTS A SHARE A YEAR AGO SALES IN THE QUARTER ROSE 62 TO 174 BILLION FROM 164 BILLION CPC SAID VOLUME GROWTH ABOUT ONETHIRD OF WHICH WAS FROM ACQUISITIONS AND HIGHER PRICES CONTRIBUTED TO THE GAINS WHICH WERE RESTRAINED BY UNFAVORABLE FOREIGN CURRENCY VALUES CR SHOEMATE CHAIRMAN AND CHIEF EXECUTIVE SAID CPC IS OFF TO A GOOD START THIS YEAR PARTICULARLY WHEN LOOKING AT RESULTS IN LOCAL CURRENCIES HE SAID RECENT ACQUISITIONS ARE CONTRIBUTING AND THAT GEOGRAPHIC EXPANSION AND NEW PRODUCT INTRODUCTIONS ALSO ARE PRODUCING GROWTH HE SAID THE LATIN AMERICAN CONSUMER FOODS BUSINESS HAD A VERY STRONG QUARTER BUT THAT CPC EXPECTS IT TO BE HURT IN THE SECOND QUARTER BY A DIFFICULT ENVIRONMENT IN BRAZIL CAUSED BY UNCERTAINTIES ABOUT THE NEW ECONOMIC PLAN THERE 9404120029 940412 BUSINESS BRIEF STUDENT LOAN MARKETING ASSOCIATION FIRSTQUARTER EARNINGS ROSE 7 AS LENDER'S ASSETS GREW THE STUDENT LOAN MARKETING ASSOCIATION OR SALLIE MAE SAID FIRSTQUARTER EARNINGS ROSE 7 CITING CONTINUED STEADY GROWTH IN ITS STUDENTLOAN PORTFOLIO FOR THE QUARTER NET INCOME WAS 1125 MILLION OR 131 A SHARE COMPARED WITH 1047 MILLION OR 115 A SHARE A YEAR EARLIER ASSETS INCREASED TO 4815 MILLION UP 6 FROM 457 MILLION DURING THE QUARTER WASHINGTONBASED SALLIE MAE REPURCHASED ABOUT 13 MILLION SHARES OF ITS COMMON STOCK AS PART OF A CONTINUING REPURCHASE PROGRAM AS OF MARCH 31 THE NATION'S LARGEST LENDER FOR POSTSECONDARY EDUCATION HAD 827 MILLION SHARES OUTSTANDING COMPARED WITH 878 MILLION A YEAR EARLIER SEPARATELY SALLIE MAE ANNOUNCED AN OFFERING OF 500 MILLION IN SHORTTERM FLOATINGRATE NOTES DUE OCT 13 THE STUDENT LOAN MARKETING ASSOCIATION SAID ASSETS AS OF MARCH 31 WERE 4815 BILLION UP 6 FROM 457 BILLION YESTERDAY'S ARTICLE ON SALLIE MAE'S FIRSTQUARTER EARNINGS MISSTATED THE ASSET FIGURES SALLIE MAE MAKES A SECONDARY MARKET IN EDUCATION LOANS AND PROVIDES SECURED ADVANCES AND OPERATIONAL SUPPORT TO LOAN ORIGINATORS THE ARTICLE INCORRECTLY SAID SALLIE MAE WAS A DIRECT LENDER 9404120028 940412 BUSINESS BRIEF JACKPOT ENTERPRISES INC MERGER CONSIDERED CONCERN TO POST DECLINE IN EARNINGS JACKPOT ENTERPRISES INC A LAS VEGAS SLOTMACHINE OPERATOR SAID IT IS IN PRELIMINARY DISCUSSIONS WITH A GAMING ENTERPRISE REGARDING THE MERGER OR CONSOLIDATION OF ITS BUSINESS WITH JACKPOT'S JACKPOT'S CHIEF FINANCIAL OFFICER FREDERICK SANDVICK SAID THE COMPANY'S BOARD RETAINED THE INVESTMENT FIRM OF BEAR STEARNS & CO TO EVALUATE POSSIBILITIES HE DECLINED TO IDENTIFY THE GAMING ENTERPRISE JACKPOT ALSO SAID A MAJOR CUSTOMER HAS DECIDED AGAINST RENEWING A LICENSE AGREEMENT FOR SLOTMACHINE OPERATIONS THE AGREEMENT WHICH EXPIRES JUNE 30 INVOLVES ABOUT 240 MACHINES IN 14 LOCATIONS THE LOST BUSINESS WILL HAVE A SIGNIFICANT EFFECT ON OPERATIONS JACKPOT SAID JACKPOT ALSO SAID IT EXPECTS TO REPORT SOMEWHAT LOWER NET INCOME FOR THE FISCAL THIRD QUARTER ENDED MARCH 31 THE COMPANY EARNED 16 MILLION A YEAR EARLIER THE COMPANY EXPECTS TO REPORT REVENUE ROSE 10 TO 15 FROM THE YEAREARLIER 217 MILLION EARNINGS WERE HURT BY LOSSES AT JACKPOT'S TUNIC MISS CASINO OPERATIONS MR SANDVICK SAID 9404120027 940412 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EACH OF THE 125 MEMBERS OF THE WORLD TRADE BODY WILL BENEFIT FROM THE TRADELIBERALIZATION AGREEMENT SAID PETER SUTHERLAND DIRECTORGENERAL OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN MOROCCO FOR A GATT MEETING TO SIGN THE ACCORD MR SUTHERLAND SAID THE GRADUAL LOWERING OF TRADE BARRIERS IS EXPECTED TO INCREASE MERCHANDISE EXPORTS BY 755 BILLION BY THE YEAR 2005 AND THAT ANALYSIS DOESN'T MEASURE THE FULL EFFECT OF THE AGREEMENT BECAUSE GATT DIDN'T APPRAISE RESULTS OF TRADE IN SERVICES OR THE TRADE STIMULUS FROM STRENGTHENED RULES AND PROCEDURES HE SAID INDEED MR SUTHERLAND SAID THE BIGGEST GAINS FOR SOME COUNTRIES WOULD COME FROM THE NEW RULES THAT PROVIDE STABILITY HEADING OFF TRADE DISPUTES PILOTS IN TURKEY REFUSED TO WORK CITING SAFETY RISKS BECAUSE OF IRREGULAR WORKING HOURS HUNDREDS OF PASSENGERS WERE STRANDED AT TURKISH AIRPORTS BECAUSE OF THE UNEXPECTED WALKOUT BY ABOUT 660 PILOTS WHO SAID THEIR WORKING HOURS VIOLATED AVIATION RULES THAT REQUIRE A REST PERIOD AFTER EACH FLIGHT THEY SAID STATERUN TURKISH AIRLINES EXPANDED ITS FLEET IN THE PAST FEW YEARS BUT NOT ITS STAFF THE CARRIER FLEW JUST TWO INTERNATIONAL FLIGHTS YESTERDAY THE STRIKE COMES AMID ECONOMIC PROBLEMS FOR TURKEY WHICH IS PURSUING AUSTERITY MEASURES INCLUDING PRICE INCREASES LAYOFFS AND NEW TAXES IN A BID TO CUT THE BUDGET DEFICIT AND INFLATION CHINESE TRADE OFFICIALS IN A NEW EFFORT TO EASE FRICTION WITH THE US IMPOSED PENALTIES ON COMPANIES THAT ALLEGEDLY EVADED US TEXTILE QUOTAS THE GOVERNMENT FINED THE FIRMS CONFISCATED THEIR PROFITS IN THE EVASION CASES AND SUSPENDED THEM FROM EXPORTING IN ONE CASE FOR TWO YEARS THE CHINA DAILY NEWSPAPER SAID THE FIRMS IN SHENYANG FUJIAN AND GUANGZHOU FALSELY LABELED SHORTS PAJAMAS AND TOWELS AS MADE IN FIJI OR THAILAND CORRUPTION CHARGES WERE FILED AGAINST 53 PEOPLE IN TAIWAN BRINGING TO 188 THE NUMBER OF PEOPLE INDICTED IN A VOTEBUYING SCANDAL AMONG THOSE INDICTED WAS KUO YENSHENG A MEMBER OF THE RULING NATIONALIST PARTY ACCUSED OF GIVING HIS CODEFENDANTS 16 MILLION TO ELECT HIM SPEAKER IN MARCH 1 BALLOTING SEPARATELY PROSECUTORS IN EIGHT CITIES AND COUNTIES HAVE CHARGED 135 PEOPLE INCLUDING 111 OFFICIALS WITH PAYING OR ACCEPTING ELECTION BRIBES INVESTIGATIONS CONTINUE IN THE CRACKDOWN FOLLOWING THE NATIONALISTS' VICTORY SWEEP FOLLOWING THE DEATH OF A DOCTOR IN BRITAIN POSSIBLY FROM EXHAUSTION THE BRITISH MEDICAL ASSOCIATION URGED THE GOVERNMENT TO EXPAND MEDICAL STAFFS AND CAP THE WORKWEEK AT 72 HOURS IN JANUARY A 27YEAROLD JUNIOR PHYSICIAN COLLAPSED AND DIED AFTER WORKING AN 86HOUR WEEK AN AUTOPSY DIDN'T PINPOINT THE CAUSE OF DEATH THE ASSOCIATION SAID BRITISH DOCTORS WORK MORE HOURS THAN THEIR EUROPEAN COUNTERPARTS NOTING THAT 83HOUR WEEKS AREN'T UNCOMMON AND THAT MOST JUNIOR DOCTORS EXCEED 76 HOURS IRELAND HAS A LEGAL LIMIT OF 65 HOURS A WEEK IN DENMARK PHYSICIANS WORK 37 1/2 HOURS A WEEK GERMAN RETAILERS OFFERED EMPLOYEES IN THE EASTERN REGION A 227 PAY INCREASE WHICH THE HBV UNION LAMBASTED AS A PROVOCATION THE OFFER TO THE 350000 WORKERS WOULD TAKE EFFECT IN AUGUST THE CURRENT CONTRACT EXPIRES APRIL 30 EMPLOYERS ALSO PROPOSED A 16 PAY CUT AT COMPANIES WITH FEWER THAN 15 EMPLOYEES THE PACKAGE WOULD PRODUCE A PAY SCALE EQUAL TO 80 OF THE WESTERN GERMAN LEVEL DOWN FROM 83 NOW SECTORS THROUGHOUT THE GERMAN ECONOMY HAVE BEEN MOVING TOWARD PAY PARITY SINCE REUNIFICATION CHINA STEPPING UP ITS CRACKDOWN ON CORRUPTION EXECUTED THE PRESIDENT OF A COMPANY WHO HAD BEEN FOUND GUILTY OF MASTERMINDING A BOND SCHEME RANKED AS ONE OF THE COUNTRY'S BIGGEST FRAUD CASES THE SUPREME PEOPLE'S COURT REJECTED AN APPEAL BY SHEN TAIFU THE 39YEAROLD FOUNDER OF GREAT WALL MACHINERY & ELECTRONICS HIGHTECHNOLOGY INDUSTRIAL GROUP CORP CONVICTED OF EMBEZZLEMENT AND BRIBERY INVOLVING 375000 HIS WIFE THE FIRM'S VICE PRESIDENT WAS GIVEN A 15YEAR PRISON SENTENCE IN THE 14MONTHOLD CASE THE COURT ALSO UPHELD A GUILTY VERDICT AGAINST LI XIAOSHI 53 FORMER SCIENCE AND TECHNOLOGY VICE MINISTER SENTENCED TO 20 YEARS FOR ACCEPTING BRIBES IN THE CASE AFTER BEING FIRED AND EXPELLED FROM THE COMMUNIST PARTY A DEPARTURE FROM THE TRADITIONAL RETIRING OR TRANSFERRING OF ERRANT MEMBERS OF THE RULING ELITE THE GREAT WALL CASE WAS DESCRIBED AS A PYRAMIDSTYLE BOND SCAM THAT TOOK IN 115 MILLION FROM 100000 INVESTORS NATIONWIDE WHO WERE PROMISED 24 INTEREST DOUBLE PREVAILING RATES CHINA HAS DENIED USING STATE FUNDS TO BAIL OUT THEIR LOSSES A THIRD OF ALL DUTCH WORKERS BICYCLED TO THEIR JOBS LAST YEAR AND 12 USED PUBLIC TRANSIT WHILE ONLY HALF DROVE PROPORTIONS THAT HAVE REMAINED CONSTANT SINCE THE MID1980S OF PEOPLE WHO LIVED WITHIN SIX MILES OF THEIR OFFICES MORE THAN HALF COMMUTED ON BIKES OFFICIALS IN THE PHILIPPINES SAID CULTISTS HAVE RAIDED DOZENS OF TOMBS IN A SOUTHERN PROVINCE AND STOLEN SKELETONS' KNEECAPS FOR USE IN AMULETS BELIEVED TO PROTECT AGAINST BULLETS IN THE COMMUNIST INSURRECTION 9404120026 940412 WHO'S NEWS LESSIN AT SMITH BARNEY IS HOSPITALIZED WITH STROKE NEW YORK ROBERT LESSIN SMITH BARNEY SHEARSON INC'S POWERFUL INVESTMENTBANKING CHIEF SUFFERED A MILD STROKE OVER THE WEEKEND AND WILL BE OUT OF WORK FOR SEVERAL WEEKS A SENIOR EXECUTIVE SAID MR LESSIN 39 YEARS OLD IS EXPECTED TO FULLY RECOVER ALTHOUGH NOBODY AT THE FIRM KNOWS THE PRECISE PROGNOSIS THE EXECUTIVE SAID MR LESSIN REMAINS IN A MANHATTAN HOSPITAL MR LESSIN'S SUDDEN HEALTH PROBLEM COULD BE A BLOW FOR SMITH BARNEY A UNIT OF TRAVELERS INC AND THE NATION'S SECONDLARGEST BROKERAGE FIRM MR LESSIN IS A KEY PLAYER IN THE FIRM'S PUSH TO BECOME AN INVESTMENTBANKING POWERHOUSE MR LESSIN A FORMER MORGAN STANLEY GROUP INC EXECUTIVE WAS AMONG THE MOST PROMINENT HIRES LAST YEAR BY ROBERT GREENHILL SMITH BARNEY'S CHAIRMAN AND CHIEF EXECUTIVE AND FORMER MORGAN STANLEY PRESIDENT DESPITE SOME RECENT HIGHPROFILE INVESTMENTBANKING DEALS SMITH BARNEY REMAINS A SECONDTIER PLAYER IN UNDERWRITING AND MERGERS THE INVESTMENTBANKING PUSH IS PART OF A BROAD STRATEGY BY TRAVELERS CHAIRMAN SANFORD WEILL TO CREATE A FINANCIALSERVICES JUGGERNAUT MR LESSIN IS AMONG SMITH BARNEY'S MOST HIGHLY REGARDED BANKERS SMITH BARNEY HASN'T NAMED AN INTERIM REPLACEMENT FOR MR LESSIN WE HAVE A VERY STRONG CADRE OF PEOPLE THE EXECUTIVE SAID 9404120025 940412 BUSINESS BRIEF FISCHER & PORTER CO MEASURINGDEVICE FIRM GETS OFFER FROM SECOND BIDDER FISCHER & PORTER CO WHICH LAST MONTH AGREED TO BE ACQUIRED BY MOORCO INTERNATIONAL INC SAID IT RECEIVED AN UNSOLICITED TAKEOVER OFFER FROM ELSAG BAILEY PROCESS AUTOMATION NV A DUTCH PRODUCER OF INDUSTRIAL PROCESS SYSTEMS ELSAG OFFERED 2425 A SHARE OR ABOUT 1565 MILLION FOR FISCHER A WARMINSTER PA MAKER OF COMMERCIAL MEASURING DEVICES THE AGREEMENT WITH MOORCO INTERNATIONAL A HOUSTON MEASUREMENT AND PRESSURECONTROL PRODUCT SUPPLIER TO THE ENERGY INDUSTRY WAS FOR 2325 A SHARE OR 150 MILLION IN AMERICAN STOCK EXCHANGE TRADING FISCHER'S STOCK JUMPED 2 TO 2463 ASHARE LAURENCE FINNEGAN FISCHER'S CHIEF FINANCIAL OFFICER SAID THE COMPANY IS EVALUATING ELSAG'S BID MOORCO DECLINED TO COMMENT 9404120024 940412 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN COMPANY SMOKING BANS DO THEY ACTUALLY HELP WORKERS QUIT MERCK CHAIRMAN ROY VAGELOS SAYS THE NUMBER OF EMPLOYEES WHO SMOKE FELL 25 DURING THE FIRST 18 MONTHS OF A COMPANYWIDE BAN MORE THAN A THIRD OF THE EMPLOYEES WHO TOOK SMOKINGCESSATION CLASSES STAYED OFF CIGARETTES FOR TWO YEARS STATE FARM REPORTS SIMILAR RESULTS I'VE HAD EMPLOYEES COME UP AND SAY TO ME THAT THIS IS THE ONLY WAY THEY EVER COULD HAVE QUIT SMOKING SAYS PERSONNEL DIRECTOR RON PREWITT BUT COUNTRY COMPANIES INSURANCE BLOOMINGTON ILL WHICH BOASTED A 25 SUCCESS RATE WHEN IT LAUNCHED ANTISMOKING PROGRAMS IN 1987 AND 1988 NOW DROPS THEM FOR LACK OF WORKER INTEREST MANY PEOPLE JUST LEAVE AT LUNCH TO SMOKE OR SMOKE AT HOME SAYS SPOKESWOMAN DEANNA FRAUTSCHI BELL ATLANTIC WHICH INSTITUTED A SMOKEFREE WORKPLACE IN 1988 ALSO STOPS PAYING FOR SMOKINGCESSATION PROGRAMS AS DOES CONSOLIDATED PAPERS WISCONSIN RAPIDS WIS PUBLIC SERVICE ELECTRIC & GAS OF NEWARK NJ THOUGH HELPS SOME 3370 EMPLOYEES WHO SMOKE 28 OF ITS WORK FORCE THROUGH AMERICAN CANCER SOCIETY AND OTHER PROGRAMS IT'S STILL THE BACK OF THE PLANE FOR MOST BUSINESS TRAVELERS THE END OF THE RECESSION HASN'T BROUGHT MUCH MORE FIRSTCLASS TRAVEL FOR EXECUTIVES COMPANIES SAY ELECTRONIC DATA SYSTEMS WHICH ENDED SUCH PERKS IN 1991 PAYS FOR FIRST CLASS ONLY IF A CRITICAL CONTRACT IS AT STAKE AMERICAN GENERAL A HOUSTON INSURER RESERVES THE WIDE SEATS FOR ITS EXECUTIVE VICE PRESIDENTS AND UNIT PRESIDENTS HOME BUILDER CENTEX CORP AND OTHERS BAN FIRSTCLASS TRAVEL UNLESS EXECUTIVES USE FREQUENTFLIER CERTIFICATES MOST COMPANIES LET EXECUTIVES KEEP THEIR MILES THEN TRADE THEM IN FOR FREE FLIGHTS OR UPGRADES ENCORE COMPUTER PLANTATION FLA REIMBURSES EMPLOYEES HALF OF THE DISCOUNTED RATE FOR ANY FLIGHT IN WHICH PERSONAL FREQUENTFLIER MILES ARE USED GAY RETIREES SOON WILL HAVE THEIR OWN RETIREMENT COMMUNITY THE PALMS OF MANASOTA A 20VILLA COMPLEX IS ON THE DRAWING BOARDS OUTSIDE SARASOTA FLA BILL LAING WHO IS BUILDING THE PROPERTY IS STILL SEARCHING FOR THE RIGHT SITE BUT EXPECTS TO FIND IT SOON HE ALREADY HAS RECEIVED MORE THAN 300 INQUIRIES AFTER ADS IN GAY PUBLICATIONS SUCH AS 10 PERCENT AND THE ADVOCATE TOUT THE FIRST ALTERNATIVE RETIREMENT HOME THERE IS NOTHING IN THE COUNTRY LIKE THIS NOT ONE RETIREMENT HOME FOR GAYS AND LESBIANS SAYS MR LAING WHO PLANS TO INCLUDE A PERMANENTCARE HOME FOR RESIDENTS UNABLE TO COOK AND HANDLE DAILY CHORES WHAT ABOUT HETEROSEXUAL APPLICANTS IF I GET STRAIGHT PEOPLE WHO WANT TO COME IN I CANNOT BY LAW KEEP THEM OUT HE SAYS BUT THEY MUST KNOW THAT IT'S GOING TO BE MADE UP OF GAY AND LESBIAN PEOPLE MR LAING SAYS HE IS PLEASANTLY SURPRISED ABOUT A LACK OF BACKLASH WE HAVEN'T GOTTEN ANY HOMOPHOBIC MAIL NOT ANY THE FEDERAL GOVERNMENT KICKS OFF A MASSIVE EFFORT TO SPUR EARLY RETIREMENTS US OFFICIALS HOPE TO LURE AS MANY AS 100000 WORKERS TO BAIL OUT AS PART OF THE FIVEYEAR GOAL OF REDUCING THE FEDERAL WORK FORCE BY 272000 BUYOUT OFFERS BEGIN AT SEVEN AGENCIES INCLUDING THE AGRICULTURE AND STATE DEPARTMENTS MONEY GETS 'EM BUT MANAGEMENT KEEPS 'EM RECENT STUDIES SHOW SEARCH FIRM CHALLENGER GRAY & CHRISTMAS FOUND IN A SURVEY THAT JOB CANDIDATES ARE WOOED TO NEW FIRMS MOSTLY BY BIG SALARIES BUT A SEPARATE SURVEY BY WILSON LEARNING CORP SAYS THAT WHAT KEEPS EMPLOYEES HAPPY IS STRONG LEADERSHIP SKILLS AMONG TOP MANAGEMENT CHEMICAL WORKFARE NEARLY TWO OF THREE WORKERS WORLDWIDE ARE EXPOSED TO CHEMICALS AT WORK THE INTERNATIONAL LABOR ORGANIZATION REPORTS THE UNITED NATIONS ARM SAYS MANY PROBLEMS INVOLVE AGRICULTURAL PESTICIDES AND CHEMICAL PRODUCTION THE PROBLEM IS QUITE CHRONIC IN DEVELOPING COUNTRIES SAYS ISAAC OBADIA ILO'S HEALTH AND SAFETY EXPERT TRAINING AND BETTER INFORMATION ARE CRUCIAL SOLUTIONS HE SAYS TRADING PLACES CHEMICAL COMPANIES SWITCH EMPLOYEES TO LEARN NEW TRICKS DOW CHEMICAL CO SENT EMPLOYEE JOHN LATHAM ON A TWOYEAR STINT TO SHOW NALCO CHEMICAL CO A FEW THINGS ABOUT ENVIRONMENTAL AND SAFETY OPERATIONS IN EXCHANGE DOW GETS NALCO EMPLOYEE STEVEN CURTIS TO SHARE HIS EXPERTISE IN SALES AND MARKETING WITH DOW'S ADVANCED CLEANING SYSTEMS BUSINESS SUCH A SWAP IS ALMOST UNHEARD OF IN THE CORPORATE WORLD DOW NORTH AMERICA VICE PRESIDENT JOHN DUREN SAYS THE EXCHANGE RESULTED FROM THE FIRMS' MUTUAL RESPECT THEY BUY THINGS FROM US WE BUY THINGS FROM THEM AND WE LIKE THE WAY THEY DO BUSINESS MR DUREN SAYS WE ARE GOING TO BORROW FROM EACH OTHER'S STRENGTHS ADDS NALCO PRESIDENT TED MOONEY THE SWAP ALSO SAVES THE COMPANIES A BIT OF MONEY WITHOUT THE SWAP MR MOONEY SAYS NALCO WOULD HAVE HAD TO HIRE SOMEONE WITH ENVIRONMENTAL AND SAFETY EXPERTISE THE CHECKOFF ONLY 400000 WOMEN IN THE US EARN MORE THAN 75000 A YEAR ABOUT ONEEIGHTH OF THE NUMBER OF MEN MAKING THAT MUCH NOTES WOMEN'S BUREAU DIRECTOR KAREN NUSSBAUM IN WORKING MOTHER MAGAZINE ABOUT A QUARTER OF ALL UNFAIR LABOR PRACTICE COMPLAINTS FILED WITH THE NLRB RELATE TO THE US POSTAL SERVICE POSTAL BOARD CHAIRMAN WILLIAM GOULD IV ESTIMATES CASES INVOLVING THE US POSTAL SERVICE MAKE UP ABOUT 7 OF ALL UNFAIR LABOR PRACTICE COMPLAINTS FILED WITH THE NATIONAL LABOR RELATIONS BOARD BASED ON ERRONEOUS INFORMATION FROM THE NLRB TUESDAY'S LABOR LETTER COLUMN OVERSTATED THE FIGURE IN THE SAME ITEM NLRB CHAIRMAN WILLIAM GOULD IV WAS MISIDENTIFIED 9404120023 940412 BUSINESS WORLD EE YOU LATER CEO BY TIM W FERGUSON FINALLY SOMEBODY IS REACTING DIRECTLY TO THE WALKAWAY WINDFALLS FOR FAILED OR FLEETING TOP EXECUTIVES THE NEW YORK CITY TEACHERS' RETIREMENT FUND HAS ATTACKED A WESTINGHOUSE ELECTRIC CORP INCENTIVE PLAN THAT IRRESPONSIBLY REWARDS ROBERT A WATSON DEPARTED HEAD OF THE FINANCIAL SERVICES UNIT MR WATSON ALREADY HAS SECURED A REPORTED 10 MILLION TO 14 MILLION FOR 18 MONTHS OF WORK LIQUIDATING THE CREDIT OPERATION THE NEW YORKERS COMPLAIN A COMPENSATION SCHEME TO BE RATIFIED BY WESTINGHOUSE STOCKHOLDERS APRIL 27 WOULD ADD OPTIONS ON 80000 SHARES OF STOCK THE GRAVY FOR MR WATSON WOULD COME FROM A PLAN AIMED AT ATTRACTING RETAINING AND MOTIVATING KEY MANAGEMENT A NEW YORK PENSION FUND RELEASE WRYLY NOTES THAT MR WATSON CANNOT CONTRIBUTE TO THAT GOAL BEING THAT HE IS NO LONGER EMPLOYED IN SEIZING ON THE OPTIONS THE TEACHERS' TRUSTEES ARE TAKING THE ONLY STAND THEY CAN AGAINST THE OVERALL ENRICHMENT BUT THE USE OF A PERFORMANCE INCENTIVE TO GIVE MR WATSON THIS LITTLE EXTRA IS IRKSOME IN ITS OWN RIGHT BECAUSE IT LUMPS HIM IN WITH OTHERS WHO ARE STILL AROUND TO BE MOTIVATED WESTINGHOUSE ELECTRIC SURELY NEEDS A BOOST FOUR MONTHS AFTER MR WATSON CLOSED UP SHOP WITH SOME HIGHLY DISCOUNTED LOAN SALES THE PARENT COMPANY'S STOCK CONTINUES TO LAG ITS INDUSTRY AND THE BROADER MARKET AT LEAST THIS EXECUTIVE DID SOMETHING WHILE PASSING THROUGH IN RECENT YEARS A HOST OF TOPMANAGEMENT TURKEYS HAVE BEEN DISPATCHED WITH HUGE SUMS AFTER ACCOMPLISHING LITTLE FOR THEIR BOSSES THE SHAREHOLDERS ANY PROTESTS THESE BONANZAS HAVE ELICITED WERE SOON LOST AMID GENERAL CRITICISM OF EXECUTIVE COMPENSATION MUCH OF WHICH IS MISPLACED PREMIUM PAY FOR UNDELIVERED GOODS IS THE PROPER TARGET AND MULTIMILLIONDOLLAR CEO EXITS OF THE '90S EXEMPLIFY IT PROMINENT CASES INCLUDE THE MAN WHO HIRED MR WATSON AT WESTINGHOUSE PAUL LEGO AS WELL AS JOHN AKERS AT IBM AND ROBERT STEMPEL AT GENERAL MOTORS ANTHONY D'AMATO OF BORDEN WILL GET 36 MILLION OVER FOUR YEARS CHARTER MEDICAL'S WILLIAM FICKLING TOOK AWAY ABOUT 2 MILLION IN SALARY ON HIS REMAINING CONTRACT PLUS OPTIONS ON TWO MILLION SHARES OPTIONS WHICH CAN BE MADE TO PAY OFF EVEN WHEN THE STOCK FLOPS ARE THE BIG COMPENSATION KICKER FOR CEOS WHEN THEY WERE TAKEN AWAY FROM JAMES ROBINSON AFTER HE WAS FORCED OUT AT AMERICAN EXPRESS HIS 18 MILLION PACKAGE WAS DESCRIBED AS BARE BONES IT ISN'T JUST THE TOP MAN WHO LEAVES WITH A SMILE ON HIS WALLET A CHIEF DEPUTY OR SUBSIDIARY BOSS MAY FALL OUT OF FAVOR AND INTO MONEY WHETHER BECAUSE OF SHORTCOMINGS OR SIMPLY A POWER STRUGGLE NICHOLAS NICHOLAS FORCED OUT AS NO 2 AT TIME WARNER GOT MORE THAN 16 MILLION TO EASE THE PAIN PLUS A 600000 PENSION FOR LIFE AND OTHER GOODIES PETER COHEN WAS SHOWN THE DOOR AND 10 MILLION AT SHEARSON LEHMAN THEN PART OF AMERICAN EXPRESS THIS STRUCK EVEN WALL STREET FOLKS AS A BIT MUCH SO WHEN HIS SUCCESSOR HOWARD CLARK JR WAS OUSTED HE GOT ONLY 22 MILLION MEASURED AGAINST THE OVERALL EXPENSES OF THE CORPORATIONS INVOLVED THESE SUMS ARE PEANUTS OF COURSE AND SOME SAY IT'S BETTER TO PAY A LOSER TO LEAVE THAN TO PAY HIM TO STAY THE GIVEAWAYS MATTER HOWEVER BOTH AS SYMBOLS AND SYMPTOMS SYMBOLS OF A COMPANY'S DISREGARD FOR SHAREHOLDERS' FUNDS THAT CANNOT HELP BUT BE INTERPRETED BY EMPLOYEES AT ALL LEVELS WHO HAVE THEIR OWN CHANCES TO CART A LITTLE OUT THE BACK DOOR AND SYMPTOMS OF A SYSTEM THAT STILL CAN'T GET THE BASICS OF CORPORATE GOVERNANCE RIGHT HOSTILE TAKEOVERS BARELY SEEN SINCE THE MID1980S WERE A WAY TO GET AT MANAGEMENT'S FEATHERED NESTS BUT THEY LED IN TURN TO GOLDEN PARACHUTES THAT PROTECTED THE PECUNIARY INTERESTS OF TOP EXECUTIVES THOSE BECAME THE GOLDEN BOOTS OF TODAY BY THE TIME THE LOOT MAKES NEWS IT'S USUALLY TOO LATE NELL MINOW LONG AN ACTIVIST FOR INSTITUTIONAL SHAREHOLDERS AND NOW WITH THE LENS FUND NOTES THAT OUTRAGEOUS SEVERANCES GENERALLY ARE ESTABLISHED AT HIRING TIME THIS CALLS FOR INTERESTED INDEPENDENT AND INVESTED DIRECTORS PARTICULARLY ON THE COMPENSATION COMMITTEES OF BOARDS WHERE THEY CAN HELP TO ENSURE THAT MANAGERS TOO HAVE A SIGNIFICANT STAKE IN THEIR COMPANIES ADVANCES HAVE BEEN INCREMENTAL AT BEST IN THIS AREA SAYS MS MINOW THE PAY PANELS ARE MEETING LONGER PUTTING THEIR NAMES ON REPORTS AND HIRING THEIR OWN CONSULTANTS BUT THEY STILL USUALLY OWE THEIR POSITIONS TO THE CEO AND NO MATTER HOW THEY'RE CHOSEN SHE SAYS INDIFFERENCE OF DIRECTORS IS STILL A PROBLEM THE BEST CHECK IS TO INSIST ON NOMINEES WITH A LOT OF MONEY IN THE COMPANY CURRENT CONTROVERSY OVER THE ACCOUNTING FOR EXECUTIVE STOCK OPTIONS FOCUSES ON A DEVICE THAT IS SUPPOSED TO MAKE FOR BETTER MANAGEMENT BUT AS WE'VE SEEN DOESN'T ALWAYS DO THAT MANY OF THE OPTIONS ARE POORLY DRAWN FROM THE SHAREOWNERS' STANDPOINT MS MINOW THINKS HAVING TO PUT THEM ON THE BALANCE SHEET WOULD LEAD TO BETTER CRAFTING IN THE WESTINGHOUSE CASE JON LUKOMNIK NEW YORK CITY'S DEPUTY COMPTROLLER SAYS THE LATEST BONUS FOR MR WATSON IS THE 13TH CHIME ON THE CUCKOO CLOCK IT MAKES YOU WONDER ABOUT THE OTHER 12 IT ALSO REMINDS US THE HOUR IS LATE FOR CHANGE 9404120022 940412 BUSINESS BRIEF AMERICAN INDUSTRIAL PROPERTIES BIG HOLDER OF REIT OPPOSES ITS PROPOSAL TO REORGANIZE AMERICAN INDUSTRIAL PROPERTIES REIT'S LARGEST SHAREHOLDER FILED PROXY MATERIALS OPPOSING THE TRUST'S PLANNED REORGANIZATION CALLING IT A CLASSIC CASE OF MANAGEMENT ENTRENCHMENT AMERICAN HOLDINGS INC A NEW JERSEY INVESTMENT CONCERN THAT OWNS 73 OF THE REAL ESTATE INVESTMENT TRUST'S SHARES IS ASKING SHAREHOLDERS TO REJECT THE PROPOSAL WHICH INCLUDES A 1FOR5 REVERSE STOCK SPLIT AND ANTITAKEOVER PROVISIONS THE PLAN WHICH WILL BE VOTED ON AT A SPECIAL SHAREHOLDERS' MEETING MAY 10 WOULD MERGE THE REIT INTO A MARYLAND SUBSIDIARY AND IN THE PROCESS LIMIT OWNERSHIP BY A SINGLE PERSON TO 98 REQUIRE A STAGGERED BOARD AND ALLOW FOR ISSUANCE OF 10 MILLION SHARES OF PREFERRED STOCK AS A POISON PILL IN ADDITION PROVISIONS IN MARYLAND LAW CAN REQUIRE 80 SHAREHOLDER APPROVAL FOR MERGERS EARLIER THIS YEAR THE COMPANY ALSO GRANTED EMPLOYMENT AGREEMENTS TO OFFICERS CALLING FOR SEVERANCE PAYMENTS IN THE EVENT OF A CHANGE OF CONTROL 9404120021 940412 LETTERS TO THE EDITOR WE DON'T PUT OBSTACLES IN THE PATH OF DOCTORS THERE WAS A COLLECTIVE WINCE HERE AT BLUE CARE NETWORK OF SOUTHEAST MICHIGAN WHEN WE SAW OUR CHART IN YOUR MARCH 24 EDITION A TASTE OF MANAGED CARE SOME READERS MIGHT GET THE WRONG IDEA THAT THIS CHART IS THE ROUTE A PHYSICIAN MUST TAKE TO GET ACCESS TO CARE FOR A PATIENT WORSE YET SOMEONE MIGHT THINK THESE ARE THE STEPS A PATIENT MUST TAKE THE CHART ILLUSTRATES A PROCESS PHYSICIANS HELPED DESIGN AT THE REQUEST OF EMPLOYERS WHO ARE CONCERNED THEIR EMPLOYEES GET APPROPRIATE CARE IT SHOWS THE TOTALITY OF STEPS TAKEN TO DETERMINE IF AN ELECTIVE MEDICAL SERVICE IS NECESSARY AND APPROPRIATE IT IS A COMMON BELIEF THAT A SIGNIFICANT PERCENTAGE OF ELECTIVE SURGERIES PERFORMED EACH YEAR ARE NOT APPROPRIATE WE IMPLEMENTED THIS PROGRAM TO MAKE SURE THAT OUR MEMBERS RECEIVE ONLY NECESSARY ELECTIVE SURGERIES SURGERIES PERFORMED FOR LIFETHREATENING MEDICAL CONDITIONS ARE NOT SUBJECT TO THIS REVIEW WE'RE NOT OUT TO SECONDGUESS PHYSICIANS WHO HAVE SIGNED UP FOR OUR NETWORK IN FACT THIS AUTOMATED PROGRAM ENSURES CONSISTENT MEDICAL OPINION REVIEWS ARE BASED ON GUIDELINES DEVELOPED BY NATIONAL MEDICAL EXPERTS OUR PHYSICIANS CAN APPEAL ANY DECISION OF THIS PROGRAM APPEALED DECISIONS ARE GIVEN WITHIN DAYS AROUND 90 OF MEDICAL SERVICES REVIEWED ARE APPROVED THESE PROGRAMS WERE DESIGNED FOR BUSINESSES THAT HAVE ASKED DOCTORS TO DEMONSTRATE THAT ALL SURGERIES ARE APPROPRIATE LARGE EMPLOYERS ACROSS THE NATION HAVE EMBRACED SUCH PROGRAMS 9404120020 940412 BUSINESS BRIEF SYNOPTICS COMMUNICATIONS INC NET FELL 37 IN 1ST QUARTER ON A REVENUE RISE OF 56 SYNOPTICS COMMUNICATIONS INC SAID PROFIT FELL 37 IN THE FIRST QUARTER THOUGH ITS STOCK PRICE ROSE ON FAVORABLE ANALYST COMMENTS BEFORE THE RESULTS WERE RELEASED THE SANTA CLARA CALIF COMPANY WHICH MAKES COMPUTERNETWORKING EQUIPMENT REPORTED NET INCOME OF 159 MILLION OR 23 CENTS A SHARE IN THE YEAREARLIER PERIOD SYNOPTICS REPORTED NET INCOME OF 219 MILLION OR 32 CENTS A SHARE REVENUE ROSE 56 TO 1613 MILLION FROM 1527 MILLION PROFIT IN THE LATEST PERIOD FELL BELOW THE AVERAGE ESTIMATE OF 30 CENTS A SHARE COMPUTED BY ZACKS INVESTMENT RESEARCH INC THE COMPANY HAS BEEN HURT BY EXCESS INVENTORY IT ALSO CITED SEASONAL FACTORS AND COMPETITIVE POSITIONING IN EXPLAINING THE DECLINE WHICH WAS REPORTED AFTER STOCK MARKETS CLOSED SYNOPTICS STOCK ROSE 150 OR 73 TO CLOSE AT 22 A SHARE IN NASDAQ STOCK MARKET TRADING YESTERDAY 9404120019 940412 LETTERS TO THE EDITOR BANK DRIVEN TO FAILURE FOR POLITICAL REASONS AS CHIEF EXECUTIVE OFFICER OF BANCO LATINO FOR 14 MONTHS UNTIL DECEMBER 1993 AND A BANK EMPLOYEE FOR 18 YEARS I MUST RESPOND TO THE ALLEGATIONS BY CARLOS BALL THE AMERICAS FEB 4 AND THOR HALVORSSEN THE AMERICAS MARCH 4 THE VENEZUELAN GOVERNMENT'S INTERVENTION IN BANCO LATINO ON JAN 16 STEMMED FROM POLITICAL MOTIVES IT WAS NOT CAUSED BY DUBIOUS BANKING PRACTICES OR CRIMINAL ACTIVITIES THAT VENEZUELA IS IN TURMOIL THERE CAN BE NO DOUBT CONGRESS IS IN THE THROES OF PASSING LEGISLATION ENTITLED EMERGENCY LAW FOR THE FINANCIAL SECTOR MR BALL IMPLIED THAT BANCO LATINO HAD BEEN FAVORED WITH SPECIAL ASSISTANCE BY FOGADE ROUGHLY EQUIVALENT TO THE FDIC ON THE CONTRARY IT WAS DELIBERATELY STARVED OF THE GOVERNMENT SUPPORT THAT HAS NOW BEEN EXTENDED TO OTHER BANKS THE GOVERNMENT HAS THROUGH FOGADE TAKEN CONTROL OF AROUND HALF THE VENEZUELAN BANKING SYSTEM AND GUARANTEED THAT ALL BANKS WILL SURVIVE IN A PUBLIC ANNOUNCEMENT UNUSUALLY SIGNED BY THE PRESIDENT AND ALL THE DIRECTORS THE CENTRAL BANK EXPLICITLY ACKNOWLEDGED THAT THE GENERAL BANKING CRISIS HAD BEEN BREWING SINCE 1992 IT REVEALED THAT AT THE TIME THIS INFORMATION WAS RELAYED TO THE GOVERNMENT CLEARLY THE TREATMENT METED OUT TO BANCO LATINO BY THE AUTHORITIES WAS DISCRIMINATORY BECAUSE OF THE GOVERNMENT'S UNWILLINGNESS TO REFUTE RUMORS THAT THE SUPERINTENDENT OF BANKS WAS ABOUT TO INTERVENE IN A THREEMONTH PERIOD MORE THAN 30 OF BANCO LATINO'S DEPOSITS WAS WITHDRAWN ONE INSTANCE OF THIS HOSTILE ATTITUDE WAS A FAX SENT OUT ON JAN 4 BY THE STATEOWNED LINEA AEROPOSTAL VENEZOLANA AIRLINE ORDERING TRAVEL AGENCIES TO REFUSE ALL PAYMENTS ON BANCO LATINO CHEQUES THE INSTRUCTION WAS SUBSEQUENTLY COUNTERMANDED IRREPARABLE DAMAGE HAD ALREADY BEEN INFLICTED BUT NO EXPLANATION OF THE EPISODE WAS EVER PROVIDED EACH WEEK IT BECAME MORE DIFFICULT FOR THE BANK TO MEET ITS OBLIGATIONS IN THE CLEARING HOUSE ON THE INEVITABLE DAY THAT THE BANCO LATINO FOUND ITSELF SHORT OF THE 30 MILLION IT NEEDED IT WAS STILL OWED THREE TIMES THAT SUM BY THE GOVERNMENT A DEBT THAT WAS UNDERPINNED BY GOVERNMENT BONDS THAT WERE PHYSICALLY LOCATED IN THE CENTRAL BANK IN ORDER TO BE USABLE THEY HAD TO BE ENDORSED BY A GOVERNMENT OFFICIAL WHEN AT LAST THE OFFICIAL DID ARRIVE IT WAS 15 MINUTES AFTER THE CENTRAL BANK HAD CLOSED THE CENTRAL BANK HAS CONFIRMED THIS VERSION OF EVENTS AMONG MANY WILD RUMORS IS AN ACCUSATION THAT I LAUNDERED DRUG MONEY FROM THE OUTSET OF MY TENURE AS CHIEF EXECUTIVE OF BANCO LATINO I INSTITUTED RIGOROUS OBJECTIVE CONTROLS DESIGNED TO COUNTER POSSIBLE MONEY LAUNDERING GOVERNMENT OFFICIALS IN THE US HAVE ASSURED ME PERSONALLY AND IN WRITING THAT I ALONG WITH MY FAMILY AM NOT THE SUBJECT OF ANY INVESTIGATION BANCO LATINO ALONGSIDE ALL OTHER VENEZUELAN BANKS HAD ITS IMPERFECTIONS THESE WERE PERHAPS HEIGHTENED BY THE ECONOMIC CRISIS OF RECENT TIMES UNLIKE OTHER VENEZUELAN BANKS BANCO LATINO WAS NOT ONLY ALLOWED TO COLLAPSE IT WAS DRIVEN TO FAILURE FOR POLITICAL REASONS MR GOMEZ LOPEZ SERVED AS CHAIRMAN OF BANCO LATINO AT THE TIME OF THE GOVERNMENT'S INTERVENTION 9404120018 940412 INTERNATIONAL SUSPICIONS ABOUT DEATHS OF 24 TOURISTS DRIVE WEDGE BETWEEN TAIWAN CHINA BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN CLAD IN SACKCLOTH AND WAILING WITH GRIEF THE MOURNERS STEPPED THROUGH CUSTOMS AND CROWDED INTO A TENT ON THE GROUNDS OF CHIANG KAISHEK INTERNATIONAL AIRPORT CLUTCHING PHOTOGRAPHS OF 24 RELATIVES KILLED IN A SUSPICIOUS BOATING ACCIDENT IN CHINA THEY WERE GREETED BY SOMBER GOVERNMENT MINISTERS WHO CALLED ON BEIJING TO EXPLAIN THE TRAGEDY THE MARCH 31 DEATH OF THE TOURISTS ON A SCENIC LAKE IN ZHEJIANG PROVINCE STUNNED TAIWAN BUT WHAT CAME AFTER AS FAMILY MEMBERS SPENT A WEEK IN CHINA SEEKING ANSWERS TO QUESTIONS ABOUT THE DISASTER AND RETURNED BITTERLY DISSATISFIED HAS POISONED THE POLITICAL ATMOSPHERE MAINLAND AUTHORITIES' STRONGARM EFFORTS TO PREVENT THE RELATIVES FROM LEARNING WHAT HAPPENED ON THE BOAT AND FROM BRINGING THE BODIES HOME FOR AUTOPSIES AND CREMATIONS HAVE TRIGGERED A FIRESTORM OF ANGER AGAINST CHINA MANY TAIWANESE BELIEVE THAT CHINESE OFFICIALS ARE CLUMSILY COVERING UP A MASS MURDER THE TRAGEDY AND ITS AFTERMATH ALSO HAVE UNDERCUT A YEAR OF PAINSTAKING EFFORTS BY TAIPEI AND BEIJING TO IMPROVE RELATIONS ALTHOUGH TAIWANESE OFFICIALS SHOW NO SIGN OF ABANDONING THE DIPLOMATIC EFFORT THEY SAY THERE WILL BE REPERCUSSIONS FOR FUTURE EXCHANGES BECAUSE OF BEIJING'S FAILURE TO ANSWER QUESTIONS ABOUT THE INCIDENT THEY ARE ALSO CRITICAL OF CHINA'S TREATMENT OF THE VICTIMS' FAMILIES THERE ALREADY HAS BEEN AN ECONOMIC IMPACT TRAVEL AGENCIES REPORT THAT THOUSANDS OF TAIWANESE HAVE CANCELED TRIPS TO CHINA AND THEY EXPECT MANY MORE TO FOLLOW SUIT GOVERNMENT OFFICIALS ARE CALLING ON BUSINESSMEN TO RETHINK INVESTMENT PLANS ALTHOUGH IT ISN'T LIKELY THAT TAIWAN INVESTORS SUDDENLY WILL RETREAT FROM THE MAINLAND BUT THE LASTING IMPACT WILL BE ON HOW THE AVERAGE TAIWANESE LOOKS AT CHINA WHATEVER TRUST AND GOODWILL WAS ESTABLISHED OVER THE PAST YEAR HAS EVAPORATED AND A SOCIETY ALREADY AMBIVALENT ABOUT EVENTUAL REUNIFICATION WITH CHINA IS BOUND TO TURN MORE DOUBTFUL IN A STATEMENT DEMANDING THAT THE CHINESE APOLOGIZE FOR THE TRAGEDY THE FAMILY MEMBERS RETURNING FROM CHINA ALSO CALLED ON THEIR GOVERNMENT TO SERIOUSLY RECONSIDER CROSSSTRAIT RELATIONS PRESIDENT LEE TENGHUI FUELED THE CONTROVERSY BY DECLARING IN A SPEECH OVER THE WEEKEND JUST LIKE BANDITS IN THE MAINLAND THEY HAVE HARMED SO MANY OF OUR TAIWANESE COUNTRYMEN LIKE THIS CAN YOU CALL THIS A GOVERNMENT THE COMMON PEOPLE OF CHINA SHOULD GET RID OF THIS GOVERNMENT IT WAS THE FIRST TIME PRESIDENT LEE PUBLICLY CALLED THE CHINESE GOVERNMENT BANDITS AN EPITHET THAT USED TO APPEAR IN ALL TAIWAN GOVERNMENT PROPAGANDA ON APRIL 2 CHINA REPORTED THAT THE TAIWANESE TOURISTS AND EIGHT MAINLAND CREWMEN HAD BEEN FOUND BURNED TO DEATH ON THE BOAT IN QIANDAO LAKE ABOUT 185 MILES SOUTHWEST OF SHANGHAI RELATIVES WHO TRAVELED TO THE SITE TO COLLECT THE BODIES IMMEDIATELY BECAME SUSPICIOUS OF LOCAL CHINESE OFFICIALS' EXPLANATION THAT THE DEATHS OCCURRED IN AN ACCIDENTAL FIRE THE TAIWANESE SAY THEY WERE PREVENTED FROM CAREFULLY EXAMINING THE BODIES AND FROM INSPECTING THE BOAT AUTOPSIES WERE PERFORMED WITHOUT THEIR PERMISSION AND THEY WEREN'T ALLOWED TO SEE THE REPORTS THEY SAY AFTER COMPLAINING ABOUT THEIR TREATMENT THEY WERE DETAINED AT A HOTEL CUT OFF FROM CONTACT WITH OUTSIDERS AND TOLD THEY MUST AGREE TO ALLOW LOCAL OFFICIALS TO CREMATE THE BODIES ALL EFFORTS BY TAIWAN'S STRAITS EXCHANGE FOUNDATION A SEMIGOVERNMENTAL BODY SET UP TO DEAL WITH THE MAINLAND ON BILATERAL ISSUES TO SEND REPRESENTATIVES TO ZHEJIANG OR TO OBTAIN EXPLANATIONS FROM THEIR COUNTERPARTS IN BEIJING WERE REBUFFED AFTER NEARLY A WEEK THE TAIWANESE RELATIVES AGREED TO ALLOW THE BODIES TO BE CREMATED AND THEY WERE ALLOWED TO LEAVE ZHEJIANG WITH THE ASHES THE MAINLAND'S ACTIONS WERE CLOSELY CHRONICLED BY THE TAIWANESE MEDIA AND SUSPICIONS QUICKLY GREW THAT THE TOURISTS HAD MET WITH FOUL PLAY THE SORROW AND ANGER CAME TO A HEAD AT THE AIRPORT SATURDAY AFTERNOON A SCENE WITNESSED LIVE ON TAIWAN TELEVISION AND REPLAYED WORLDWIDE AS HUNDREDS OF RELATIVES JOURNALISTS AND GOVERNMENT OFFICIALS GATHERED TO MEET THE FAMILY MEMBERS AFTER PLACING PHOTOS OF THE DEAD ON AN ALTAR AND LIGHTING INCENSE DELEGATION MEMBERS HELD A NEWS CONFERENCE AT WHICH THEY SUGGESTED A MASS KILLING HAD OCCURRED THEY ASKED HOW EVERY PERSON ON THE BOAT INCLUDING THE CREW COULD HAVE BEEN FOUND BURNED TO DEATH ON A LOWER DECK AND THEY SAID THEY HAD SEEN BULLET HOLES IN THE BOAT THEY SUGGESTED THE BODIES MAY HAVE BEEN BURNED TO COVER UP MURDER SENIOR TAIWANESE OFFICIALS JOINED THE FAMILY MEMBERS IN INSISTING THAT THE CHINESE GOVERNMENT INVESTIGATE THE SITUATION THE ATTENTION GIVEN IN THE INTERNATIONAL MEDIA TO THE FAMILY MEMBERS' RETURN TO TAIWAN APPEARS TO HAVE FORCED THE CHINESE GOVERNMENT TO GIVE SOME GROUND ON SATURDAY A VICE SECRETARYGENERAL OF THE STRAITS EXCHANGE FOUNDATION WAS INVITED TO BEIJING FOR TALKS CHINA'S OFFICIAL XINHUA NEWS SERVICE LATE SATURDAY REPORTED THAT THE POSSIBILITY OF SABOTAGE IS NOT RULED OUT IN THE TOURISTS' DEATHS AT THE SAME TIME BEIJING'S TAIWAN AFFAIRS OFFICE ISSUED A STATEMENT SAYING WE HOPE THAT RELEVANT SECTORS IN TAIWAN CAN LOOK OBJECTIVELY AND COOLLY AT THIS ACCIDENT TO PREVENT PEOPLE FROM USING IT TO CREATE PUBLIC OPINION AND INCIDENTS UNHELPFUL TO THE DEVELOPMENT OF RELATIONS BETWEEN THE TWO SIDES 9404120017 940412 BUSINESS BRIEF SUSQUEHANNA BANCSHARES INC PACTS SIGNED TO BUY 3 BANKS IN MARYLAND FOR 107 MILLION SUSQUEHANNA BANCSHARES INC LITITZ PA SIGNED DEFINITIVE AGREEMENTS TO ACQUIRE THREE MARYLAND BANKS FOR A TOTAL OF ABOUT 107 MILLION IN STOCK AND CASH SIGNIFICANTLY EXPANDING ITS REACH INTO THE STATE SUSQUEHANNA SAID IT WILL ACQUIRE FAIRFAX FINANCIAL CORP OF BALTIMORE FOR ABOUT 55 MILLION IN CASH AND REISERTOWN HOLDINGS INC OF REISERTOWN FOR ABOUT 28 MILLION IN CASH THE COMPANY ALSO AGREED TO ACQUIRE ATLANFED BANCORP INC OF BALTIMORE FOR ABOUT 12 MILLION COMMON SHARES REPRESENTING ABOUT 2006 FOR EACH ATLANFED SHARE ON A FULLY DILUTED BASIS AFTER THE TRANSACTIONS SUSQUEHANNA WILL HAVE FOUR BANKING INSTITUTIONS IN MARYLAND WITH 14 BILLION IN ASSETS AND FIVE BANKS IN PENNSYLVANIA WITH 15 BILLION IN ASSETS THE COMPANY EXPECTS THE ACQUISITIONS TO ADD TO EARNINGS IN A YEAR AFTER THE TRANSACTIONS CLOSE 9404120016 940412 WHAT'S NEWS WORLDWIDE NATO BOMBED SERB POSITIONS IN SOUTHEASTERN BOSNIA FOR A SECOND DAY TWO US FIGHTERS BOMBED AND SHOT AT SEVERAL SERB ARMORED VEHICLES AND TRUCKS THAT WERE MOVING INTO THE TOWN OF GORAZDE EARLIER IN THE DAY SERB ARTILLERY SHELLED GORAZDE HEAVILY AND SERB FORCES ELSEWHERE IN BOSNIA LIMITED THE MOVEMENTS OF UN PEACEKEEPERS AND RELIEF WORKERS US ATTEMPTS TO REACH SERB POLITICAL LEADERS IN BOSNIA AND SERBIA WERE UNSUCCESSFUL A US OFFICIAL SAID CLINTON SAID HE TALKED BY TELEPHONE SUNDAY NIGHT WITH RUSSIA'S YELTSIN WHO EXPRESSED CONCERN OVER THE INITIAL BOMBING AND THE FACT THAT MOSCOW DIDN'T KNOW ABOUT IT IN ADVANCE BATTLES RAGED THROUGH RWANDA'S CAPITAL AND SPREAD INTO THE COUNTRYSIDE FIGHTING INTENSIFIED BETWEEN THE RWANDAN ARMY AND REBELS AND THOUSANDS OF CORPSES WERE REPORTED TO BE PILED UP IN THE CAPITAL KIGALI RELIEF OFFICIALS ESTIMATED AS MANY AS 20000 PEOPLE HAVE DIED IN KIGALI ALONE IN FIVE DAYS OF ETHNIC SLAUGHTER IN RWANDA'S SECONDLARGEST CITY BUTARE REFUGEES FROM RURAL AREAS TOLD OF ROAMING GANGS THAT WERE SETTING FIRE TO VILLAGES AND HACKING RESIDENTS TO DEATH MOST RELIEF AGENCIES PULLED FOREIGN STAFFERS OUT OF THE COUNTRY THE UN HAS BEEN TRYING TO BROKER AN EFFECTIVE CEASEFIRE PACT BETWEEN THE REBELS AND THE ARMY BUT THE REBELS AGAIN REFUSED TO SIGN A TRUCE YESTERDAY THE CLINTONS PAID 14615 IN BACK FEDERAL AND STATE TAXES AND INTEREST AFTER FAILING TO REPORT A 6498 CAPITAL GAIN IN THE FAMILY'S 1980 RETURNS THE PRESIDENT'S PERSONAL ATTORNEY SAID THE CAPITAL GAIN RESULTED FROM COMMODITIES TRADING BY MRS CLINTON A FORMER DEPUTY PRIME MINISTER EMERGED AS AN UNEXPECTED CONTENDER TO BECOME JAPAN'S NEXT LEADER MICHIO WATANABE 70 A MEMBER OF THE OPPOSITION LIBERAL DEMOCRATIC PARTY DECLARED HIS INTEREST IN JOINING WITH SOME ELEMENTS OF THE RULING COALITION IN ORDER TO SUCCEED PRIME MINISTER HOSOKAWA ISRAEL HAS AGREED TO RELEASE 2500 PALESTINIAN PRISONERS TWO DAYS AFTER IT SIGNS AN ACCORD WITH THE PLO ON ISRAEL'S PULLOUT FROM GAZA AND JERICHO ACCORDING TO A PLO NEGOTIATOR IN CAIRO THE WITHDRAWAL ACCORD ORIGINALLY DUE TO BE SIGNED TOMORROW AT THE LATEST NOW IS EXPECTED TO BE WRAPPED UP BY THE END OF THIS MONTH INFANTS' BRAINS WERE REPORTED TO BE MORE MALLEABLE THAN PREVIOUSLY THOUGHT WITH THE NUMBER OF BRAIN CELLS AND CONNECTIONS BETWEEN THEM INFLUENCED BY A CHILD'S ENVIRONMENT POVERTY IS INCREASING DRAMATICALLY AMONG THE NATION'S INFANTS AND TODDLERS ACCORDING TO A CONGRESSIONAL STUDY THAT SAID MANY OF THESE CHILDREN ARE LOCKED OUT OF FEDERAL HEALTH AND EDUCATION PROGRAMS FLORIDA SUED TO COLLECT 15 BILLION FROM THE FEDERAL GOVERNMENT TO COMPENSATE THE STATE FOR PROVIDING SCHOOLING HEALTH CARE AND PRISON BEDS FOR HUNDREDS OF THOUSANDS OF ILLEGAL IMMIGRANTS GOV CHILES SAID THE SUIT WAS THE FIRST OF ITS KIND RESEARCHERS IN PHILADELPHIA SAID THEY USED AN EXPERIMENTAL VACCINE TO REDUCE THE RECURRENCE OF MALIGNANT MELANOMA IN A HIGHRISK GROUP OF PATIENTS WITH THE SKIN CANCER HEARINGS BEGAN IN CINCINNATI ON RADIATION EXPERIMENTS CONDUCTED DURING THE 1960S ON 88 CANCER PATIENTS MOSTLY POOR AND BLACK A HOUSE PANEL HEARD TESTIMONY FROM PATIENTS' RELATIVES TO DETERMINE WHETHER FAMILIES SHOULD BE COMPENSATED THE EXPERIMENTS WERE PARTLY FUNDED BY THE PENTAGON VIOLENCE IN THE WORKPLACE IS RISING ACCORDING TO A SURVEY WITH NEARLY A QUARTER OF FIRMS SAYING AT LEAST ONE OF THEIR WORKERS HAS BEEN ATTACKED OR KILLED ON THE JOB SINCE 1990 ACCORDING TO THE STUDY THOUGH ONLY 24 OF EMPLOYERS OFFER SOME OF THEIR EMPLOYEES ANY FORMAL TRAINING IN COPING WITH WORKPLACE VIOLENCE UKRAINE AND RUSSIA HAVE ESCALATED THEIR DISPUTE OVER THE FORMER SOVIET UNION'S BLACK SEA FLEET IN THE LATEST OF A SERIES OF INCIDENTS UKRAINIAN SERVICEMEN SEIZED CONTROL OF A FLEET FACILITY IN ODESSA HARBOR OVER THE WEEKEND ALGERIA'S HARDLINE PRIME MINISTER QUIT AND WAS SUCCEEDED BY THE NATION'S EQUIPMENT MINISTER WHO IS A MODERATE MALEK RESIGNED AFTER WEEKS OF ARMY CLASHES WITH MUSLIM FUNDAMENTALISTS 9404120015 940412 BUSINESS BRIEF CATO CORP FISCAL FIRSTQUARTER PROFIT IS SEEN TRAILING ESTIMATES CATO CORP SAID IT EXPECTS NET INCOME FOR ITS FIRST FISCAL QUARTER ENDING APRIL 30 TO BE BETWEEN 83 MILLION AND 9 MILLION OR 28 CENTS TO 30 CENTS A SHARE ANALYSTS HAD BEEN EXPECTING PROFIT OF ROUGHLY 10 MILLION OR 34 CENTS A SHARE THE CHARLOTTE NC COMPANY SAID SALES OF ITS WOMEN'S APPAREL WERE SLOWER THAN EXPECTED DURING MARCH THE COMPANY SAID IT STILL EXPECTS TO END THE YEAR ON TARGET WITH NET INCOME OF BETWEEN 97 CENTS AND 103 A SHARE LAST YEAR THE COMPANY REPORTED FISCAL FIRSTQUARTER PROFIT OF 94 MILLION OR 32 CENTS A SHARE 9404120014 940412 INTERNATIONAL PEPSICO WILL ACQUIRE INDIA FIRM THAT LEADS BOMBAY DRINK MARKET NEW DELHI PEPSICO INC IS POISED TO GRAB A LARGE CHUNK OF BOMBAY'S SOFTDRINKS MARKET BY ACQUIRING A 105YEAROLD INDIAN COMPANY THAT PRODUCES AND SELLS SEVERAL DOMINANT BRANDS IN THE CITY LATER THIS WEEK PEPSI FOODS LTD THE US COMPANY'S INDIAN SUBSIDIARY IS TO SIGN AN AGREEMENT FORGING A STRATEGIC ALLIANCE WITH DUKE & SONS LTD PEPSI FOODS MANAGING DIRECTOR PM SINHA SAID IN AN INTERVIEW MR SINHA WOULDN'T DISCLOSE TERMS HE SAID THE DEAL WILL GIVE PEPSI A 35 SHARE OF THE FASTGROWING BOMBAY SOFTDRINK MARKET MOST OF THE REST OF THE BOMBAY MARKET IS HELD BY COCACOLA CO'S SUBSIDIARY COCACOLA INDIA THROUGH BRANDS IT ACQUIRED WHEN IT TOOK OVER MARKET LEADER PARLE EXPORTS LTD LAST YEAR AS PART OF ITS STRATEGY FOR ENTERING THE INDIAN MARKET COCACOLA DOESN'T YET SELL ITS FLAGSHIP COKE BRAND IN INDIA PEPSICO'S PEPSI BRAND AND ITS ORANGE AND LIME DRINKS HAVE GRABBED AN ESTIMATED 30 OF INDIA'S 11 BILLION RUPEE 3533 MILLION SOFTDRINKS MARKET SINCE COCACOLA REENTERED INDIA IN 1990 MR SINHA SAID THAT DUKE'S SODA WATER LEMONADE AND MANGOFLAVORED DRINK ARE MARKET LEADERS IN BOMBAY AND THAT PEPSI WOULD LIKE TO SELL THEM NATIONWIDE IN THE MEANTIME THE DEAL WILL GIVE PEPSI ITS FIRST BIG BOTTLING PLANT IN BOMBAY SO FAR THE COMPANY HAS SUPPLIED THE CITY FROM A PLANT ABOUT 806 MILES AWAY AND MUNICIPAL AUTHORITIES HAVE TAXED SHIPMENTS WHEN THEY ENTER THE CITY DUKE'S BOMBAY BOTTLING PLANT HAS AN ANNUAL PRODUCTION CAPACITY OF ABOUT 75 MILLION CASES AND IS BEING RUN AT ABOUT 55 MILLION CASES A YEAR MR SINHA SAID HE ADDED THAT PEPSI PLANS TO BOOST CAPACITY TO 14 MILLION CASES FOR AN ASSAULT ON THE BOMBAY MARKET COCACOLA CO HAS BEEN SELLING ITS COKE BRAND IN INDIA SINCE OCTOBER 1993 BUT DOESN'T YET MARKET THE BRAND IN BOMBAY AN ARTICLE TUESDAY INCORRECTLY STATED THAT COKE ISN'T YET MARKETED IN INDIA 9404120013 940412 TECHNOLOGY & HEALTH RESEARCH LINKS PERSISTENCE OF CANCER CELLS TO ENZYME WASHINGTON AP RESEARCHERS MAY HAVE DISCOVERED WHY CANCER CELLS ARE ABLE TO REPRODUCE ENDLESSLY A FINDING THAT COULD LEAD TO DRUGS THAT WOULD ATTACK DISEASE CELLS DIRECTLY WITHOUT HARMING HEALTHY TISSUE CALVIN B HARLEY WHO DIRECTED THE RESEARCH AT MCMASTER UNIVERSITY IN ONTARIO SAID HIS GROUP FOUND AN ENZYME IN CANCER CELLS THAT PERMITS THE UNLIMITED REPLICATION OF NEW CELLS THE ENZYME IS ABSENT IN NORMAL BODY CELLS AT A NEWS CONFERENCE YESTERDAY DR HARLEY SAID NORMAL CELLS ARE ABLE TO REPRODUCE ONLY A FINITE NUMBER OF TIMES LIMITED BY THE CONDITION OF THE TIP END OF THE CHROMOSOMES IN A CELL THIS TIP CALLED THE TELOMERE CONTAINS A CAP OF IDENTICAL GENES THAT PROTECT THE REST OF THE GENE STRUCTURE CANCERCELL LINES HOWEVER SEEM TO BE ABLE TO REPLICATE ENDLESSLY DR HARLEY SAID HIS STUDY SUGGESTS THIS IS BECAUSE CANCER CELLS FOR UNKNOWN REASONS PRODUCE TELOMERASE AN ENZYME ABLE TO REPAIR THE TELOMERE BY REPLACING THE LOST GENES SINCE THE TELOMERE IS REPAIRED CONSTANTLY CANCER CELLS KEEP REPLICATING DR HARLEY'S STUDY BASED ON TESTTUBE RESEARCH IS TO BE PUBLISHED TODAY IN THE PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES 9404120012 940412 LETTERS TO THE EDITOR JUSTICE SERVED OR MEDIEVAL SADISM I WAS PLEASED TO SEE AN AMERICAN JONATHAN HOLBURT WRITING ON YOUR MARCH 28 EDITORIAL PAGE TO DEFEND THE STRONG ARM OF SINGAPORE LAW IN WHICH A YOUNG AMERICAN WHO CONFESSED TO A 10DAY SPREE OF VANDALISM HERE HAS BEEN SENTENCED TO SIX STROKES OF THE BAMBOO CANE A 1400 FINE AND FOUR MONTHS IN JAIL I HAVE FOLLOWED THIS STORY IN THE NEWSPAPERS WITH PROGRESSIVELY GREATER ASTONISHMENT OUR STATE DEPARTMENT'S CHARGE D'AFFAIRES WASTES AMERICA'S GOOD WILL AND MY TAX DOLLARS PROTESTING THE PUNISHMENT OF A YOUNG AMERICAN VANDAL AS AMERICA SLIDES INTO SOCIAL CHAOS AT THE HANDS OF THE LAWYERS SINGAPORE IS AN INTERESTING LESSON IN THE SPAN OF THE SAME 50 YEARS THAT AMERICA HAS SLIPPED INTO CRIME AND DISORDER UNDER AN EVERMORE INCOHERENT SET OF LEGAL MANIPULATIONS THAT HAVE DEPRIVED SOCIETY OF THE RIGHT TO PROTECT ITSELF SINGAPORE HAS RISEN FROM A SEAMY CORRUPT SEAPORT TO AN ASTONISHINGLY PRODUCTIVE ORDERLY MULTICULTURAL SOCIETY THAT LIVES IN PEACE BECAUSE OF RESPECT FOR AND ENFORCEMENT OF HIGH STANDARDS OF CIVIL BEHAVIOR THE LESSONS ARE CLEAR IN AMERICA THE LAWYERS HAVE CONTROL OF THE JUDICIARY THE PRESIDENCY AND THE CONGRESS THE HOUR IS VERY LATE FOR AMERICA CERTAINLY NO ONE IN WASHINGTON SEEMS AWARE NOR DO THE CULTURAL RADICALS AT THE INDOCTRINATION CENTERS WHICH WE STILL CALL UNIVERSITIES I SUSPECT IF THIS VANDAL IS CANED IT WILL TURN OUT TO BE A SEMINAL MOMENT IN HIS LIFE AND MAY WELL SAVE HIM FROM FURTHER DESTRUCTIVE BEHAVIOR AFTER HAVING GIVEN DR SPOCK'S TEACHINGS 50 YEARS OF TRIAL AND HAVING SEEN THE ERROR I FEEL WE NEED TO GIVE CANING A CHANCE THE APOLOGIA MR HOLBURT OFFERED FOR SINGAPORE'S USE OF THE RATTAN A BAMBOO SHAFT ON A YOUNG AMERICAN CONVICTED OF VANDALISM IS CASUISTIC IN THE EXTREME HE NEGLECTS TO MENTION THAT THE RATTAN IS USED FOR ONLY THREE CLASSES OF OFFENSE VANDALISM MURDER AND RAPE NO MATTER HOW TRAUMATIZED A SINGAPOREAN MAY BE TO FIND HIS OR HER CAR SPRAYPAINTED NO ONE WHO HAS NOT ENTIRELY LOST TOUCH WITH WESTERN STANDARDS OF JUSTICE WOULD ARGUE THAT VANDALISM IS COMPARABLE TO MURDER OR RAPE AND MERITS A PUNISHMENT NORMALLY ACCORDED TO THESE IN FACT THE STROKES OF THE RATTAN RESULT IN SEVERE INJURY IT IS NO MERE SPANKING ANYONE WHO HAS EVER HANDLED BAMBOO WILL KNOW THAT ONCE SNAPPED IT BREAKS INTO NUMEROUS LONGITUDINAL SLATS THAT SPLAY WHEN PRESSED AGAINST SOMETHING AND THAT PINCH WHEN RETRACTED EACH STROKE OF THE RATTAN WILL SPLAY AGAINST THE VICTIM'S BUTTOCKS AND WITH EACH RECOIL WILL LIFT OFF LONG BLOODY STRIPS OF THE VICTIM'S FLESH THAT IS THE REASON THE RATTAN IS NORMALLY SAVED FOR MURDER AND RAPE AFTER 16 STROKES THE MAXIMUM THE VICTIM IS NOT ONLY SCARRED FOR LIFE BUT WITHOUT PROMPT MEDICAL ATTENTION COULD DIE FROM SHOCK OR LOSS OF BLOOD I WAS IN SINGAPORE TWICE AS A MEMBER OF THE US MARINES WE WERE ALL CAREFULLY BRIEFED ABOUT THIS BIZARRE PENALTY WHEN WE TOOK LIBERTY THERE AND I HAVE NO SYMPATHY FOR WILLFUL VANDALS BUT THIS PUNISHMENT IS NOTHING LESS THAN A SADISTIC PUNISHMENT THAT HAS NO MORE PLACE IN THE MODERN WORLD THAN THE ISLAMIC PRACTICE OF MAIMING THIEVES OR THE MEDIEVAL EUROPEAN PRACTICE OF FRYING RELIGIOUS AND POLITICAL DISSIDENTS ON AN ENORMOUS SKILLET INDEED SINGAPORE USES THE RATTAN AS A PUNISHMENT FOR VANDALISM AND EQUATES IT WITH MURDER OR RAPE PRIMARILY TO SUPPRESS POLITICAL DISSENT MR FAY HAS ADMITTED DAMAGING 18 VEHICLES SINGAPORE'S IMPORT DUTY ON MOTOR VEHICLES IS ONE OF THE HIGHEST IN THE WORLD CARS ARE ALMOST TWICE AS EXPENSIVE AS THEY ARE IN THE US THE CAR OWNERS AND INSURANCE COMPANIES INVOLVED WOULD NATURALLY BE QUITE UPSET THE SINGAPORE JUDGE MADE ONE MISTAKE ANTICIPATING A PROTEST HE SHOULD HAVE GIVEN MR FAY THE MAXIMUM SENTENCE OF 16 STROKES AFTER WHICH HE COULD THEN APPEAR LENIENT BY REDUCING THE SENTENCE TO SIX ISN'T THAT THE AMERICAN WAY SINGAPORE A POLICE STATE UNDER THE GUISE OF DEMOCRACY IS WELLKNOWN FOR ITS DRACONIAN LAWS AND HUMANRIGHTS VIOLATIONS THE SYCOPHANTIC GOVERNMENTCONTROLLED PRESS HAS TAKEN MUCH SADISTIC PLEASURE IN CALLING FOR THE COURTS TO ORDER THIS BARBARIC SENTENCE TO AN UNWITTING AMERICAN TEENAGER FOR MINOR PRANKS HOWEVER THE US CANNOT AND SHOULD NOT TOLERATE SUCH ACTS OF VIOLENCE AND TERROR AGAINST ITS CITIZENS IN SINGAPORE THE US SHOULD STAND UP FOR ITS CITIZENS ABROAD AND SHOULD DO ALL IT CAN TO ENSURE THEIR SAFETY AND PROTECT THEM FROM BRUTALITY THE US TRAVEL ADVISORY SHOULD POST PROMINENT NOTICES IN INTERNATIONAL AIRPORTS WARNING ALL AMERICANS TRAVELING TO SINGAPORE THAT THE LAW REQUIRES SEVERE TORTURE FOR PERCEIVED MINOR VIOLATIONS THEY SHOULD ALSO BE WARNED THAT THE TYPE OF TORTUROUS CANING METED OUT BY AN OFFICER TRAINED IN MARTIAL ARTS RIPS OPEN THE FLESH CAUSES FAINTING LEAVES PERMANENT SCARS AND SENDS VICTIMS TO A STATE OF SHOCK THOUGH I AGREE WITH ALMOST ALL OF WHAT MR HOLBURT WROTE ABOUT THE CANING I DISAGREE STRONGLY WITH HIS DESCRIPTION OF THE CONDITIONS IN SINGAPORE IN 1959 I SUSPECT HE HAS SUCCUMBED TO THE REWRITING OF HISTORY BY THE PEOPLE'S ACTION PARTY OR SOME OTHER SOURCE OF MISINFORMATION I LIVED IN SINGAPORE IN 1959 LIVING THERE AT THAT TIME ONE DID NOT FEEL ANY PRESENCE OF THE BRITISH MILITARY FROM THE TIME THAT THOMAS STAMFORD RAFFLES FOUNDED SINGAPORE IN 1819 THE CITY WAS A STRATEGIC TRADING PORT FOR ALL OF SOUTHEAST ASIA AND HAS BEEN VERY SUCCESSFUL BY ANY HISTORICAL STANDARD NO SINGAPORE DID NOT HAVE AND NEVER HAS HAD ANY NATURAL RESOURCES OTHER THAN THE HARD WORK ETHIC OF ALL THE PEOPLE WHO HAVE WORKED THERE SINCE ITS FOUNDING IN 1959 CRIME WAS NOT RAMPANT SINGAPORE WAS A CLEAN LAWABIDING CITY AND AN ISLAND OF ORDERLINESS IN A RATHER STORMY SOUTHEAST ASIA 9404120011 940412 COORDINATED TESTING OF MUTUALFUND SALES URGED BY COMPTROLLER WASHINGTON COMPTROLLER OF THE CURRENCY EUGENE LUDWIG URGED FEDERAL BANKING AND SECURITIES REGULATORS TO BEGIN COORDINATED TESTING OF THE SALES METHODS FOR MUTUAL FUNDS MR LUDWIG ENCOURAGED FELLOW REGULATORS TO FORM AN INTERAGENCY TASK FORCE THAT WOULD DEVELOP A UNIFORM APPROACH FOR TESTING HOW SALESPEOPLE FOR BANKS THRIFTS AND SECURITIES FIRMS PITCH MUTUAL FUNDS TO PROSPECTIVE CUSTOMERS THE EFFORT WOULD HELP ENSURE THAT MUTUALFUND CUSTOMERS RECEIVE THE INFORMATION THEY NEED TO MAKE INFORMED DECISIONS ABOUT INVESTING THE COMPTROLLER SAID THE TESTS WOULD CONCENTRATE PARTLY ON WHETHER THE MUTUAL FUND BEING OFFERED IS SUITABLE FOR THE PARTICULAR CUSTOMER THE COMPTROLLER AND THE SECURITIES AND EXCHANGE COMMISSION HAVE SUITABILITY REQUIREMENTS THAT BEAR ON THIS QUESTION THE TESTS WOULD ALSO DELVE INTO WHAT SALESPEOPLE SAY AS TO WHETHER MUTUAL FUNDS ARE FEDERALLY INSURED MR LUDWIG SAID SURVEYS BY THE SEC AND THE AMERICAN ASSOCIATION OF RETIRED PERSONS HAVE SHOWN WIDESPREAD CONSUMER CONFUSION ABOUT WHETHER MUTUALFUND INVESTMENTS ARE INSURED BY THE FEDERAL DEPOSIT INSURANCE CORP BANK DEPOSITS ARE FDICINSURED BUT MUTUALFUND INVESTMENTS WHETHER THEY'RE SOLD BY BANKS OR SECURITIES FIRMS AREN'T THE COMPTROLLER'S BANKEXAMINATION POLICIES ENCOURAGE BANKS TO TEST THEIR OWN SALES PERSONNEL ON MUTUALFUND SALES PROCEDURES AND TO ASK CUSTOMERS IF THEY UNDERSTOOD WHAT THEY BOUGHT MR LUDWIG WROTE TO THE SEC THE FDIC THE FEDERAL RESERVE BOARD AND THE OFFICE OF THRIFT SUPERVISION WHILE NO RESPONSES HAVE YET BEEN RECEIVED OFFICIALS OF THOSE AGENCIES IN TALKS WITH MR LUDWIG SEEMED GENERALLY INTERESTED IN THE PROPOSAL A SPOKESWOMAN FOR HIS OFFICE SAID 9404120010 940412 FINANCIAL ADVISORS IS TARGET OF SEC CHARGES OF SECURITIES FRAUD CONCORD NH THE SECURITIES AND EXCHANGE COMMISSION HAS CHARGED A NEW ENGLAND INVESTMENT FIRM FINANCIAL ADVISORS INC WITH SECURITIES FRAUD ALLEGING THAT THE COMPANY SOLD 35 MILLION IN UNREGISTERED SECURITIES THEN DIVERTED AND MISUSED A MAJORITY OF THE PROCEEDS THE CIVIL COMPLAINT FILED IN THE US DISTRICT COURT HERE ALLEGED THAT FINANCIAL ADVISORS ALONG WITH ITS CHAIRMAN AND CHIEF EXECUTIVE NORMAN L BROOKS INDUCED AT LEAST A HUNDRED INVESTORS TO PURCHASE THE SECURITIES IN THE FORM OF PROMISSORY NOTES GUARANTEEING ANNUAL RATES OF RETURN OF 10 TO 14 INVESTORS WERE TOLD THAT THE INVESTMENTS WOULD BE USED TO MAKE AUTOMOBILE LOANS IN A RISKFREE VENTURE THE COMPLAINT SAID THE FIRM EMPLOYING APPROXIMATELY 10 TELEMARKETERS AND OPERATING AT ONE TIME OUT OF A CHELMSFORD MASS OFFICE AND LATER FROM BEDFORD NH CONTACTED AS MANY AS 35000 POTENTIAL INVESTORS NATIONWIDE UNDER THE SCHEME THE SEC ALLEGED BASED ON A REVIEW OF THE COMPANY'S PHONE RECORDS THE COMPANY IS NOW BASED IN BEDFORD IN ACTUALITY HOWEVER ONLY 850000 OF THE MONEY WAS USED FOR IN AUTOMOBILE LOANS AND 27 MILLION IS EITHER MISUSED OR UNACCOUNTED FOR ALLEGED JAMES ADELMAN ASSISTANT DISTRICT ADMINISTRATOR FOR THE SEC IN BOSTON THE SEC HAS SOUGHT A TEMPORARY RESTRAINING ORDER AND PERMANENT INJUNCTION REQUESTING THAT THE ASSETS OF MR BROOKS AND THAT OF FINANCIAL ADVISORS ALONG WITH SEVERAL OTHER SUBSIDIARIES BE FROZEN A HEARING HAS BEEN SET FOR THURSDAY MR ADELMAN SAID JOHN FIELD III ATTORNEY FOR MR BROOKS DECLINED TO COMMENT SAYING THAT HE HADN'T SEEN A COPY OF THE COMPLAINT 9404120009 940412 INTERNATIONAL SENIOR LDP MEMBER SEEKS TO BE JAPAN'S NEXT LEADER WATANABE SAYS HE MAY JOIN WITH RULING COALITION WHERE RIFT IS GROWING BY WALL STREET JOURNAL REPORTERS DAVID P HAMILTON MASAYOSHI KANABAYASHI AND JATHON SAPSFORD TOKYO BLUNTSPOKEN MICHIO WATANABE IS EMERGING AS AN UNEXPECTED CONTENDER TO LEAD JAPAN MR WATANABE A SENIOR POLITICIAN IN THE OPPOSITION LIBERAL DEMOCRATIC PARTY AND A FORMER DEPUTY PRIME MINISTER YESTERDAY DECLARED HIS INTEREST IN JOINING SOME ELEMENTS OF THE RULING COALITION IN ORDER TO SUCCEED PRIME MINISTER MORIHIRO HOSOKAWA WHO ANNOUNCED HIS RESIGNATION FRIDAY AT THE SAME TIME A GROUP OF YOUNG LDP POLITICIANS BROKE WITH THE PARTY HIERARCHY AND DECLARED THEIR SUPPORT FOR MR WATANABE INSISTING THAT ONLY HE HAS THE DECISIVENESS NEEDED TO TACKLE THE NATION'S PROBLEMS WE MUST PUT THE NATION AND THE PEOPLE BEFORE THE LIBERAL DEMOCRATIC PARTY SAID SHOKEI ARAI A 46YEAROLD LDP LEGISLATOR WHO BACKS MR WATANABE MEANWHILE A RIFT IN THE SEVENMEMBER RULING COALITION WIDENED AS MEMBERS AGAIN FAILED TO REACH AGREEMENT ON PICKING A NEW PRIME MINISTER THREE OF THE PARTIES INCLUDING MR HOSOKAWA'S JAPAN NEW PARTY AND THE SHINSEITO PARTY BOYCOTTED A MEETING CALLED BY THE OTHER FOUR THE IMPASSE UNDERSCORES DIFFERENCES THAT HAVE EMERGED BETWEEN MORE AGGRESSIVE REFORMERS PERSONIFIED BY SHINSEITO STRATEGIST ICHIRO OZAWA AND A GOSLOW FACTION LED BY CHIEF CABINET SECRETARY MASAYOSHI TAKEMURA SOME ANALYSTS SAY THAT FAILURE TO REACH AGREEMENT AT A MEETING SCHEDULED FOR TUESDAY COULD LEAD TO A LASTING SPLIT IN THE COALITION THE STRUGGLE WITHIN THE COALITION AND THE INVOLVEMENT OF MR WATANABE AND OTHER POTENTIAL LDP DEFECTORS REPRESENT THE SECOND STAGE IN A PROTRACTED PERIOD OF TRANSITION AND POLITICAL REALIGNMENT THE FIRST CAME LAST SUMMER WHEN THE LDP SPLIT AND ELEMENTS JOINED THE CURRENT RULING COALITION TO END 38 YEARS OF ONEPARTY RULE NOW THE SCRAMBLE IS ON TO LURE MORE DEFECTORS AWAY FROM THE LDP A REALIGNMENT THAT MAY WELL DRAW TOGETHER SUCH ONETIME RIVALS AS MR OZAWA AND MR WATANABE OR EVEN SUCH UNLIKELY BEDFELLOWS AS CORE MEMBERS OF THE LDP AND THEIR LONGTIME FOES IN THE SOCIALIST PARTY ON ONE SIDE FORMER LDP MEMBERS INCLUDING MR OZAWA AND FOREIGN MINISTER TSUTOMU HATA WANT TO TRANSFORM JAPAN INTO A NATION THAT ASSUMES INTERNATIONAL MILITARY RESPONSIBILITIES AND TAKES VIGOROUS STEPS TO DEREGULATE ITS ECONOMY ON THE OTHER SIDE MR TAKEMURA AND HIS ALLIES IN THE SOCIALIST PARTY OPPOSE EXPANSION OF THE JAPANESE MILITARY ROLE PREFERRING TO TAKE ECONOMIC REFORM MORE SLOWLY TO MINIMIZE THE PAIN INFLICTED BY ECONOMIC DISLOCATION IT IS STILL POSSIBLE THAT THE COALITION CAN PATCH UP ITS DIFFERENCES AND FORM A NEW GOVERNMENT PROBABLY UNDER MR HATA BUT IF THE COALITION CRUMBLES BOTH SIDES WILL INTENSIFY EFFORTS TO LINE UP ALLIES IN THE LDP WHICH WILL HOLD THE BALANCE OF POWER THAT'S WHERE MR WATANABE AND HIS ALLIES IN THE LDP COME IN IN CONTRAST TO MR HOSOKAWA WHO CALLED WORLD WAR II A JAPANESE WAR OF AGGRESSION MR WATANABE ARGUES THAT THE WAR WAS ONE OF SURVIVAL AND OF DEFENSE IN STYLE MR WATANABE'S MODE WOULD BE A THROWBACK TO THE LDP SAYS GERALD CURTIS A COLUMBIA UNIVERSITY JAPAN EXPERT MR WATANABE WHO HAS A HISTORY OF MAKING CARELESS AND OFTEN OFFENSIVE REMARKS IS STILL BEST KNOWN IN THE WEST FOR ONCE CLAIMING THAT SOME AMERICAN BLACKS DON'T CARE IF THEY GO BANKRUPT AND HE HAD TO APOLOGIZE AFTER SAYING IN 1988 THAT MANY CHINESE DIG CAVES AND LIVE IN THEM BECAUSE OF POOR COMMUNIST MANAGEMENT MR WATANABE HAS RECENTLY GROWN EVEN MORE OUTSPOKEN I'M FULL OF SPIRIT AND ENERGY THE 70YEAROLD LEGISLATOR SAID OVER THE WEEKEND WHEN A FEMALE TV REPORTER ASKED HIM ABOUT HIS FRAGILE HEALTH BUT I HAVE NO SEIRYOKU A PHRASE OFTEN TRANSLATED AS SEXUAL VIGOR NEVERTHELESS MR WATANABE HAS TAKEN CARE TO POSITION HIMSELF AS SOMETHING OF AN OZAWASTYLE REFORMER ON SUNDAY HE PUBLISHED A NEW BOOK THE NEW CONSERVATIVE REVOLUTION IN WHICH HE WROTE I THINK IT IS OK TO DISSOLVE THE LIBERAL DEMOCRATIC PARTY IN FAVOR OF A TWOPARTY SYSTEM MR WATANABE ALSO CALLS FOR A MASSIVE 170 TRILLION YEN 163 TRILLION BOOST IN PUBLICWORKS SPENDING BY THE END OF THE DECADE AND GOVERNMENT BUYBACKS OF BAD BANK LOANS IN ORDER TO STIMULATE JAPAN'S SLUGGISH ECONOMY MR WATANABE HAS INSISTED HE AND HIS SUPPORTERS WON'T ACTUALLY LEAVE THE LDP UNTIL HE IS CERTAIN HE CAN ATTRACT ENOUGH DEFECTORS TO FORM A NEW GOVERNMENT WITH MEMBERS OF THE EXISTING COALITION DESPITE HIS SUPPORT FROM YOUNGER LDP MEMBERS IT'S STILL FAR FROM CLEAR THAT HE CAN DO SO HISAYUKI MIYAKE AN INDEPENDENT POLITICAL ANALYST GIVES MR WATANABE ONLY A 10 TO 20 CHANCE OF ACTUALLY BECOMING PRIME MINISTER EVEN IF HE DOESN'T SUCCEED HOWEVER MR WATANABE MAY STILL PLAY A ROLE IN POLITICAL REALIGNMENT OZAWA WANTS TO PENETRATE THE LDP TO BREAK IT UP SAYS TAKAO TOSHIKAWA EDITOR OF A POLITICAL NEWSLETTER HIS INTENT IS NOT TO MAKE WATANABE PRIME MINISTER BUT TO BREAK UP THE LDP SEPARATELY JAPAN ANNOUNCED THAT IT WILL SEND NOBUO MATSUNAGA A HIGHRANKING BUREAUCRAT AND FORMER AMBASSADOR TO THE US TO MOROCCO LATER THIS WEEK FOR THE SIGNING OF A WORLD TRADE AGREEMENT MR MATSUNAGA IS A STANDIN FOR MR HATA WHO HAD HOPED TO MEET WITH US TRADE REPRESENTATIVE MICKEY KANTOR TO PRESS THE US TO RESUME STALLED TRADE TALKS WITH JAPAN 9404120008 940412 FINANCING BUSINESS KIII COMMUNICATIONS CORP KIII COMMUNICATIONS CORP A NEW YORK PUBLISHING COMPANY CONTROLLED BY THE INVESTMENT COMPANY OF KOHLBERG KRAVIS ROBERTS & CO REGISTERED TO OFFER 100 MILLION OF SENIOR NOTES DUE 2004 IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY SAID PROCEEDS WILL BE COMBINED WITH OTHER BORROWINGS TO REPAY ABOUT 564 MILLION OF DEBT UNDER AN OLD CREDIT AGREEMENT MERRILL LYNCH & CO AND MORGAN STANLEY & CO WILL UNDERWRITE THE OFFERING 9404120007 940412 ENOUGH IS ENOUGH ON WHITEWATER BY ARTHUR SCHLESINGER JR ONE GREAT BLEMISH IN THE POPULAR MIND OF AMERICA AND THE PROLIFIC PARENT OF AN INNUMERABLE BROOD OF EVILS THE ENGLISH VISITOR TELLS US IS UNIVERSAL DISTRUST YOU NO SOONER SET UP AN IDOL FIRMLY THAN YOU ARE SURE TO PULL IT DOWN AND DASH IT INTO FRAGMENTS ANY MAN WHO ATTAINS A HIGH PLACE AMONG YOU FROM THE PRESIDENT DOWNWARDS MAY DATE HIS DOWNFALL FROM THAT MOMENT FOR ANY PRINTED LIE THAT ANY NOTORIOUS VILLAIN PENS ALTHOUGH IT MILITATE DIRECTLY AGAINST THE CHARACTER AND CONDUCT OF A LIFE APPEALS AT ONCE TO YOUR DISTRUST AND IS BELIEVED THE ENGLISH VISITOR WAS CHARLES DICKENS AND HE WAS TELLING AMERICANS THESE THINGS IN 1842 A CENTURY AND A HALF LATER UNIVERSAL DISTRUST HAS CLEARLY NOT VANISHED FROM THE AMERICAN PSYCHE NOR IS A MEASURE OF DISTRUST A BAD THING FOR A DEMOCRACY IT IS PROPER AND NECESSARY THAT PRESIDENTS BE HELD RIGOROUSLY RESPONSIBLE FOR EVERYTHING THEY ORDER OR APPROVE AS PRESIDENT THE PRESIDENT SAID ANDREW JACKSON MUST BE ACCOUNTABLE AT THE BAR OF PUBLIC OPINION FOR EVERY ACT OF HIS ADMINISTRATION BUT THE CURRENT WHITEWATER HULLABALOO INTRODUCES A STARTLING AND UNPRECEDENTED DOCTRINE THAT A PRESIDENT SHOULD BE INVESTIGATED NOT FOR THINGS HE HAS DONE AS PRESIDENT BUT FOR THINGS HE MIGHT OR MIGHT NOT HAVE BEEN INVOLVED IN A DOZEN YEARS BEFORE HE BECAME PRESIDENT HAS THERE BEEN A PREVIOUS INSTANCE IN AMERICAN HISTORY WHEN CONGRESSIONAL COMMITTEES AND SPECIAL PROSECUTORS WERE MOBILIZED TO INVESTIGATE A PRESIDENT'S PREPRESIDENTIAL CAREER I CAN THINK OF NONE THE TRADITIONAL ASSUMPTION HAS BEEN THAT A CANDIDATE'S PREPRESIDENTIAL CAREER IS AN ENTIRELY LEGITIMATE ELECTION ISSUE BUT THAT ONCE THE ELECTION IS OVER AND THE NEW PRESIDENT HAS BEEN ANOINTED BY THE VOTERS THE SLATE IS WIPED CLEAN AND THE PRESIDENT IS THEREAFTER JUDGED ON HIS PRESIDENCY THIS IS WHERE COMPARISONS WITH WATERGATE OR IRANCONTRA FAIL IN THOSE CASES PRESIDENTS WERE PURSUED NOT BECAUSE OF EXHUMATIONS FROM THE PAST BUT BECAUSE OF ILLEGAL PROJECTS UNDERTAKEN IN THE PRESIDENTIAL PRESENT THE WHITEWATER DOCTRINE IN SHORT IS AN ASTONISHING HISTORICAL INNOVATION IF IT HAD BEEN APPLIED TO PREVIOUS PRESIDENTS TO LYNDON JOHNSON FOR EXAMPLE THINK WHAT A FIELD DAY CONGRESSIONAL COMMITTEES AND SPECIAL PROSECUTORS WOULD HAVE HAD DIGGING UP POLITICAL AND FINANCIAL DIRT IN TEXAS A REJOINDER IS THAT MR CLINTON IS BEING PURSUED NOT FOR WHAT HAPPENED IN ARKANSAS LONG BEFORE HIS PRESIDENCY BUT FOR A PRESUMED COVERUP PERPETRATED BY HIS PRESIDENCY IT IS TRUE ENOUGH THAT MR CLINTON HAS BEEN ILLSERVED BY HIS WHITE HOUSE STAFF HE HAS SURROUNDED HIMSELF WITH PEOPLE WITH LIMITED GOVERNMENT EXPERIENCE HIS STAFFERS HAVE NOT KNOWN HOW LITTLE THEY KNOW THE CONSEQUENT SUCCESSION OF WHITE HOUSE RESIGNATIONS AND SUBPOENAS FEEDS THE SUSPICION THAT THERE MUST BE SOMETHING ROTTEN IN THE INNER CIRCLE REORGANIZATION OF THE WHITE HOUSE STAFF AND RECRUITMENT OF PEOPLE OF EXPERIENCE AND STATURE SHOULD BE ONE OF THE PRESIDENT'S TOP PRIORITIES BRINGING IN LLOYD CUTLER IS AN EXCELLENT BUT APPARENTLY BY MR CUTLER'S CHOICE ONLY A TEMPORARY FIX BUT THE REAL ISSUE IS NOT MR CLINTON'S WHITE HOUSE STAFF IT IS WHETHER ANYTHING HAPPENED IN ARKANSAS A DOZEN YEARS AGO TO JUSTIFY THIS EXTRAORDINARY DETOUR FROM PRESENT URGENCIES OF GOVERNMENT IF ALL THAT IS INVOLVED IN WHITEWATER IS SOUTHERN COURTHOUSE POLITICS OF A FAMILIAR SORT WHAT DOES THAT HAVE TO DO WITH THE CLINTON PRESIDENCY A DECADE LATER DID HARRY TRUMAN'S ASSOCIATION WITH THE PENDERGAST MACHINE DISQUALIFY HIM FROM THE PRESIDENCY AND IF THE PRESS AND THE REPUBLICANS DO COME UP WITH SOME MAJOR OFFENSE COMMITTED YEARS AGO WHAT DO THEY HAVE IN MIND AS THEIR NEXT STEP DO THEY REALLY THINK THAT THIS WOULD PROVIDE GROUNDS FOR IMPEACHMENT OBVIOUSLY THE WHITEWATER STALKERS HAVE OTHER MOTIVATIONS THAN DISINTERESTED CONCERN FOR THE GENERAL WELFARE AND FOR THE HISTORICAL RECORD REPUBLICANS ARE USING WHITEWATER IN AN ATTEMPT TO DERAIL A REFORM PROGRAM THAT WAS JUST BEGINNING TO GATHER STEAM AND TO DISCREDIT A PRESIDENTIAL WIFE WHOSE VIEWS THEY ARE RELUCTANT TO ATTACK DIRECTLY AS FOR THE PRESS SOME REPORTERS ONE FEARS ARE ENGAGED IN A QUEST FOR PULITZER PRIZES AND WOODWARDBERNSTEIN NOTORIETY OTHERS FEEL THAT THEY WERE DECEIVED BY THE INCOMPLETE AND INACCURATE EXPLANATIONS THE CLINTON PEOPLE GAVE THEM DURING THE CAMPAIGN AGAIN THE STAFF PROBLEM AND ARE DETERMINED NOT TO BE TAKEN IN AGAIN AND THE DYNAMICS OF COMPETITION SOMETIMES DRIVE JOURNALISTS TO LOSE THEIR SENSE OF PROPORTION IN PURSUIT OF A JUICY STORY LITTLE COULD BE MORE RIDICULOUS THAN THE RECENT TIME COVER STORY HINTING DARKLY THAT GEORGE STEPHANOPOULOS MIGHT BE OBSTRUCTING JUSTICE BECAUSE HE QUERIED THE HIRING OF A FORMER REPUBLICAN PROSECUTOR BY A DEMOCRATIC TREASURY DEPARTMENT TO LOOK INTO AN ASPECT OF THE WHITEWATER AFFAIR I DO NOT KNOW OF ANY WHITE HOUSE IN HISTORY DEMOCRATIC OR REPUBLICAN THAT WOULD NOT HAVE OBJECTED TO THE APPOINTMENT OF A RABID PARTISAN FROM THE OPPOSITION TO A POST THAT COULD DO DAMAGE TO THE ADMINISTRATION EVEN THE AUGUST NEW YORK TIMES DEVOTES LEAD EDITORIALS TO WHITEWATER AS IF THIS WERE THE MOST URGENT ISSUE FACING THE NATION IT CALLS ON NEWS ORGANIZATIONS TO PUT MORE RESOURCES RATHER THAN FEWER INTO THE WHITEWATER STORY CITING THE FAILURE OF THE PRESS TO FOLLOW UP ON THE IRANCONTRA AND SAVINGSANDLOAN SCANDALS BUT THOSE SCANDALS WERE THE RESPONSIBILITY OF AN ADMINISTRATION IN POWER THEY WERE NOT SCANDALS OF MR REAGAN'S PREPRESIDENTIAL PAST ONE EXPECTS THE WALL STREET JOURNAL A NEWSPAPER THAT TOLERANTLY ENDURES MY PERIODIC HERESIES TO DENOUNCE A REFORM ADMINISTRATION ENGAGED IN VENTURES OF WHICH THE JOURNAL'S EDITORS DISAPPROVE BUT WHAT IN THE WORLD IS THE TIMES DRIVING AT WHY DO TIMES EDITORS THINK THAT PUTTING MORE RESOURCES INTO AN INVESTIGATION OF ANCIENT HISTORY IN ARKANSAS IS SO VITAL FOR THE FUTURE OF THE REPUBLIC AS TO JUSTIFY BRINGING DOWN AN ADMINISTRATION THAT THE TIMES GENERALLY SUPPORTS OR AT THE VERY LEAST BLOCKING ACTION ON REFORMS THAT THE TIMES GENERALLY APPROVES THE TIMES'S PRIORITIES SEEM A TRIFLE ASKEW FANATICISM AS SANTAYANA SAID CONSISTS IN REDOUBLING YOUR EFFORTS WHEN YOU HAVE FORGOTTEN YOUR AIM READING THE TIMES'S SELFRIGHTEOUS EDITORIALS TODAY ONE CAN ONLY REFLECT WHAT GRAND OPPORTUNITIES EARLIER TIMES EDITORS MISSED IN NOT DEMANDING SPECIAL PROSECUTORS AND CONGRESSIONAL INVESTIGATIONS OF LBJ'S TEXAS PAST CHESTER A ARTHUR'S ADMINISTRATION OF THE NEW YORK CUSTOMHOUSE AND JAMES A GARFIELD'S CONNECTION WITH THE CREDIT MOBILIER AND THE WOODENBLOCK PAVEMENT SCANDALS AND IN THE LONGER RUN ONE WONDERS WHY THE TIMES OR EVEN THE JOURNAL ENDORSES A DOCTRINE HITHERTO UNKNOWN IN OUR HISTORY THAT THROWS OPEN A PRESIDENT'S PAST TO AIMLESS INVESTIGATION AT THE EXPENSE OF THE BUSINESS OF THE PRESENT A DOCTRINE GUARANTEED TO PRODUCE GOVERNMENTAL PARALYSIS ON AN UNPRECEDENTED SCALE AS A HISTORIAN AND BIOGRAPHER I AM IN FAVOR OF HISTORICAL INQUIRIES FOR THEIR OWN SAKE AND I TRUST THAT IN DUE COURSE BILL CLINTON WILL FIND HIS ROBERT CARO BUT I DOUBT THAT SUCH INQUIRIES HAVE MUCH RELEVANCE TO THE ACTIONS OF ADMINISTRATIONS IN OFFICE IF THEY DO SHED LIGHT CONGRESS AND THE PRESS SHOULD FOCUS ON PRESENT ACTIONS NOT ON ALLEGED ANTECEDENTS UNLESS PUTTING IN MORE RESOURCES PRODUCES SOME STUNNING DISCLOSURE MORE AND MORE PEOPLE WILL AGREE WITH BARRY GOLDWATER GET OFF THE PRESIDENT'S BACK AND LET HIM GET ON WITH HIS JOB IN THE END WHITEWATER MAY DAMAGE THE PRESS AND THE POLITICAL OPPOSITION AS MUCH AS IT DAMAGES THE CLINTON ADMINISTRATION THE INITIAL IMPACT CAME FROM EXPLOITATION OF THE UNIVERSAL DISTRUST THAT DICKENS SAW AS A GREAT BLEMISH IN THE AMERICAN POPULAR MIND BUT IF DISTRUST IS UNIVERSAL IT MAY BRING DOWN NEWSPAPER EDITORS AND LEADERS OF THE OPPOSITION AS WELL MR SCHLESINGER IS ALBERT SCHWEITZER PROFESSOR OF THE HUMANITIES AT THE CITY UNIVERSITY OF NEW YORK AND A WINNER OF PULITZER PRIZES IN HISTORY AND BIOGRAPHY 9404120006 940412 WORKPLACE COMPANIES SEE MORE WORKPLACE VIOLENCE BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL LAWYERS ARE LOCKING THEIR OFFICES DOCTORS ARE WEARING THEIR IDENTIFICATION TAGS UPSIDE DOWN SOME EXECUTIVES ARE EVEN WEARING BULLETPROOF VESTS TO WORK THEIR FEAR GROWING VIOLENCE IN THE WORKPLACE NEARLY A QUARTER OF 311 COMPANIES SURVEYED BY THE AMERICAN MANAGEMENT ASSOCIATION IN PRELIMINARY RESULTS RELEASED YESTERDAY SAY AT LEAST ONE OF THEIR WORKERS HAS BEEN ATTACKED OR KILLED ON THE JOB SINCE 1990 ANOTHER 31 REPORTED THREATS AGAINST WORKERS OVERALL 1004 AMERICANS WERE MURDERED ON THE JOB IN 1992 FEDERAL STATISTICS SHOW 32 MORE THAN THE ANNUAL AVERAGE IN THE 1980S HOMICIDE IS THE NO 2 CAUSE OF DEATH IN THE WORKPLACE THE NO 1 CAUSE IS TRANSPORTATION ACCIDENTS TO RESPOND TO THE ESCALATING VIOLENCE CALIFORNIA STATE CONGRESSWOMAN DEDE ALPERT HAS INTRODUCED BILLS THAT WOULD ALLOW EMPLOYERS TO OBTAIN RESTRAINING ORDERS TO PROTECT THEIR WORKERS CLIENTS AND CUSTOMERS AND FORBID EMPLOYEES FROM BRINGING GUNS TO THE WORKPLACE UNLESS THEY HAVE WRITTEN PERMISSION FROM THEIR EMPLOYERS BUT ACCORDING TO THE AMA RESULTS ONLY 24 OF EMPLOYERS OFFER FORMAL TRAINING TO SOME EMPLOYEES IN COPING WITH WORKPLACE VIOLENCE AND JUST 10 OFFER SUCH TRAINING TO ALL EMPLOYEES THE FACT THAT FEWER THAN HALF OF FIRMS HAVE ANY KIND OF PROCEDURES IN PLACE TO DEAL WITH SUCH INCIDENTS SHOWS A LACK OF PREPAREDNESS SAYS ERIC GREENBERG DIRECTOR OF MANAGEMENT STUDIES FOR AMA A NONPROFIT MANAGEMENT TRAINING ORGANIZATION IN NEW YORK TOO MANY ARE SITTING AROUND WAITING FOR SOMETHING TO HAPPEN COMPANIES HAVE BEEN SLOW TO MOVE PARTLY BECAUSE THEY DON'T KNOW WHAT THEY'RE UP AGAINST THE BUREAU OF LABOR STATISTICS WHICH COMPILES STATISTICS ON DEATH IN THE WORKPLACE DOESN'T REQUIRE COMPANIES TO REPORT THREATS OR ATTACKS IN WHICH NO ONE DIES FEDERAL EXPRESS CORP FOR INSTANCE WAS NOT REQUIRED TO REPORT AS WORKPLACE VIOLENCE THE RECENT ATTACK BY A WORKER ABOARD A FEDERAL EXPRESS CARGO JET ON THE PLANE'S CREW FOUR PEOPLE INCLUDING THE ASSAILANT WERE SERIOUSLY INJURED ANOTHER STATISTICAL VOID HOW OFTEN ARE THE TARGETS SUPERVISORS AND HOW OFTEN ARE THEY COWORKERS ARE FORMER WORKERS OR CUSTOMERS MORE LIKELY TO BE ATTACKERS THAN CURRENT ONES WITHOUT THAT KIND OF DATA YOU HAVE NO IDEA OF THE MAGNITUDE OF THE PROBLEM YOU DON'T KNOW HOW TO ORCHESTRATE A RESPONSE OR PREVENTIVE PLAN OF ACTION SAYS DR KENNETH WOLF DIRECTOR OF THE MULTI RESOURCE CENTER FOR CRISIS RESPONSE IN SOUTHFIELD MICH INDEED MR WOLF AND OTHER CONSULTANTS OFTEN CALLED ON TO HELP COMPANIES COPE WITH WORKPLACE VIOLENCE HAVE LITTLE DATA TO WORK WITH THE VAST MAJORITY OF THE 1004 WORKERS WHO WERE KILLED ON THE JOB IN 1992 LATER DATA AREN'T AVAILABLE WERE KILLED IN ROBBERIES OR STICKUPS MOSTLY IN STORES RESTAURANTS AND TAXI CABS NOT IN OFFICE BUILDINGS ANOTHER 6 WERE POLICE KILLED IN THE LINE OF DUTY THAT LEAVES 126 MURDERS THAT LIKELY TOOK PLACE IN AN OFFICE OR ON THE FACTORY FLOOR ACCORDING TO FEDERAL STATISTICS 87 OF THESE MURDERS WERE BUSINESS DISPUTES BETWEEN CURRENT AND FORMER WORKERS OR BETWEEN CUSTOMERS AND CLIENTS THE REMAINING MURDERS WERE PERSONAL DISPUTES MOSTLY INVOLVING A FEMALE WORKER'S CURRENT OR FORMER HUSBAND OR BOYFRIEND BASED ON THE BUSINESS DISPUTE MURDERS EXPERTS HAVE DRAWN CONFLICTING PROFILES OF WHICH WORKERS ARE LIKELY TO ATTACK OR KILL IN THE WORKPLACE MOST EXPERTS INCLUDING DR WOLF SAY THE KILLERS TEND TO BE MIDDLEAGED WHITE MEN WHO HAVE A SENSE OF ENTITLEMENT AND OFTEN COMPLAIN ABOUT THEIR WORK BUT PARK DIETZ HEAD OF THE THREAT ASSESSMENT GROUP A CONSULTING FIRM IN NEWPORT CALIF SAYS THREE OF THOSE FOUR CRITERIA ARE DEAD WRONG STATISTICALLY THE PEOPLE MOST LIKELY TO BE VIOLENT ARE YOUNG MINORITY AND MALE HE SAYS SINCE IT'S ILLEGAL TO SCREEN JOB APPLICANTS FOR AGE RACE OR SEX HE SUGGESTS ANOTHER RELIABLE INDICATOR OF A VIOLENT TEMPERAMENT HISTORY OF PRIOR VIOLENCE ACCORDING TO THE AMA SURVEY ONLY 48 OF FIRMS SCREEN APPLICANTS FOR PRIOR CRIMINAL RECORDS BUT IT'S NOT CLEAR HOW MANY DO THAT SIMPLY BY ASKING APPLICANTS IF THEY HAVE BEEN CONVICTED OF FELONIES COMPANIES WHO DO THIS ARE ASSUMING THE EMPLOYEES WILL TELL THE TRUTH WHICH IS NOT A GOOD BET IN THE FEDERAL EXPRESS INCIDENT FOR INCIDENCE THE ATTACKER FLIGHT ENGINEER AUBURN CALLOWAY WAS ABOUT TO LOSE HIS JOB BECAUSE HE HAD ALLEGEDLY FALSIFIED HIS APPLICATION FORM A FEDERAL EXPRESS SPOKESMAN WOULD NOT ELABORATE THERE ARE OTHER DANGER SIGNS COMPANIES CAN LOOK FOR THE GUNMAN IN THE 1991 MASSACRE AT THE US POSTAL SERVICE OFFICE IN ROYAL OAK MICH FOR INSTANCE HAD WARNED COWORKERS THAT IF HE DIDN'T WIN HIS JOB BACK HE WOULD MAKE HIS WORKPLACE LOOK LIKE EDMUND OKLA WHERE A POSTAL CARRIER KILLED 14 PEOPLE IN 1986 SAYS DR WOLF A CONSULTANT TO THE POST OFFICE ANOTHER WARNING THE GUNMAN THOMAS MCILVANE HAD BEEN DISMISSED FROM THE MILITARY FOR DISCIPLINARY PROBLEMS INCLUDING USING A TANK TO RUN OVER THE CAR OF A PERSON WITH WHOM HE'D HAD A DISPUTE SAYS A POST OFFICE SPOKESMAN COMPANIES CAN TAKE STEPS TO DEFUSE A WORKER'S ANGER BEFORE IT TURNS VIOLENT THE POST OFFICE FOR EXAMPLE ENCOURAGES EMPLOYEES TO REPORT POTENTIALLY VIOLENT COWORKERS TO A TOLLFREE HOTLINE WHICH GETS ABOUT 10000 CALLS A YEAR LAST YEAR POSTAL INSPECTORS SPENT 100000 HOURS INVESTIGATING CALLS ABOUT WORKPLACE VIOLENCE THE POST OFFICE HAS ALSO FORMED AN INTERVENTION TEAM OF NINE WORKERS WHO WILL TRY TO MEDIATE CONFLICTS IN THE WORKPLACE THE TEAM COMPLETED ITS TRAINING A MONTH AGO BUT HASN'T BEEN DISPATCHED TO WORK SITES YET IN OCTOBER THE POST OFFICE HIRED AN OUTSIDE FIRM TO SCREEN APPLICANTS BUT THAT WON'T AFFECT 750000 EMPLOYEES ALREADY ON THE ROLLS OFFICIALS HAVE CONSIDERED REVIEWING PERSONNEL FILES TO FIND TIME BOMBS EMPLOYEES WHO MIGHT ATTACK COWORKERS BUT DECIDED AGAINST SCREENING BECAUSE THEY FEARED LITIGATION EVERYONE AFTER THE FACT HAS ALL KINDS OF IDEAS ON WHAT YOU COULD HAVE DONE SAYS JOE MAHON THE POSTAL AGENCY'S VICE PRESIDENT OF LABOR RELATIONS BUT BEFORE THE FACT THEY'RE VERY CONCERNED ABOUT PRIVACY AND ALL THE THINGS WE HOLD DEAR IN OUR SOCIETY OF COURSE THERE MAY BE LITTLE WARNING THE GUNMAN WHO STORMED THE OFFICES OF SAN FRANCISCO LAW FIRM PETTIT & MARTIN LAST JULY WAS A DISGRUNTLED CLIENT WHO NEVER INDICATED HE WAS UNHAPPY WITH THE FIRM HE KILLED EIGHT PEOPLE BEFORE TURNING HIS GUN ON HIMSELF THE FIRM RESPONDED BY KEEPING ITS DOORS LOCKED AND ARMING ITS RECEPTIONIST WITH A PANIC BUTTON BUT IS THERE A SUREFIRE WAY TO PREVENT AN ATTACK I REALLY DONT THINK THERE IS SAYS THE FIRM'S MARKETING DIRECTOR VICTORIA SPANG 9404120005 940412 FOREIGN EXCHANGE DOLLAR SKIDS AGAINST YEN AS TURMOIL IN JAPAN HURTS TRADE TALKS' PROSPECTS BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL FURTHER TAKING THE STEAM OUT OF THE DOLLAR WAS A RENEWED CALL BY AN INFLUENTIAL US ECONOMIST FOR A SIGNIFICANTLY STRONGER YEN TO HACK AWAY AT JAPAN'S TRADE SURPLUS IN THE ABSENCE OF A TRADE DEAL AGAINST EUROPEAN CURRENCIES THE DOLLAR WAS NARROWLY MIXED FAILING TO BREAK OUT OF FAMILIAR RANGES AS INVESTORS TOOK TO THE SIDELINES PRIOR TO THE RELEASE OF IMPORTANT US ECONOMIC DATA AND A DECISION THIS WEEK BY GERMANY'S CENTRAL BANK ON INTEREST RATES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 10345 YEN DOWN SHARPLY FROM 10515 YEN LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 17120 MARKS DOWN SLIGHTLY FROM 17125 MARKS STERLING WAS TRADING AT 14705 OFF FROM 14765 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10332 YEN AND AT 17130 MARKS JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA'S ABRUPT DECISION FRIDAY TO RESIGN AMID ALLEGATIONS OF DIRTY FINANCIAL DEALINGS WAS FIRST SEEN AS BULLISH FOR THE DOLLAR BUT INFIGHTING BY HIS COALITION OVER A SUCCESSOR HAS UNSETTLED A MARKET NERVOUS ABOUT THE LONGMIRED USJAPAN TRADE TALKS SENDING THE DOLLAR SOUTHWARD THE DOLLAR'S CLIMB FRIDAY TOOK PLACE ON THE THEORY THAT MR HOSOKAWA'S EXIT WOULDN'T BE SUCH A BAD THING IF HE WERE QUICKLY SUCCEEDED BY POLITICALLY ASTUTE FOREIGN MINISTER TSUTOMU HATA SEEN AS MORE CAPABLE OF ENDING GOVERNMENT GRIDLOCK IN JAPAN AND REVIVING TRADE TALKS I THINK THERE WAS A REREAD ON THE ORIGINAL BLUSH THAT THE HOSOKAWA RESIGNATION WAS A DOLLAR BUY SAID RICH TAUBERMAN VICE PRESIDENT AT WESTPAC BANKING CORP IN NEW YORK NOW THE VIEW IS THAT IT WILL IMPEDE TRADE NEGOTIATIONS TRADERS NOTED THAT REPEATED INTERVENTION BY THE BANK OF JAPAN DURING ASIAN TRADING YESTERDAY WASN'T ABLE TO REVERSE THE DOLLAR'S TWOYEN SLIDE TO AN INTRADAY LOW OF 10308 YEN ONCE IT BECAME OBVIOUS THAT THE LIBERAL SIDE OF THE RULING COALITION WOULDN'T MOVE BEHIND THE CONSERVATIVE FACTION PUSHING MR HATA FOR PREMIER MR HATA'S POLITICAL SITUATION REMAINS IN DOUBT AFTER WEEKEND DEBATES THAT ILLUSTRATED THE FRAGILITY OF THE COALITION NOT ONLY IS IT UNCLEAR WHETHER MR HATA WILL BE TAPPED TO BE THE NEXT PRIME MINISTER HE ALSO MAY BE FORCED TO CANCEL A PREVIOUSLY ANNOUNCED MEETING WITH US TRADE REPRESENTATIVE MICKEY KANTOR DURING THE RATIFICATION OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR GATT IN MOROCCO THIS WEEK JAPANESE OFFICIALS ANNOUNCED YESTERDAY THAT FOREIGN MINISTRY SPECIAL ADVISER NOBUO MATSUNAGA WOULD BE SENT FOR THE SIGNING IN MR HATA'S PLACE BUT REMAINED VAGUE AS TO WHETHER MR HATA HIMSELF WOULD ATTEND I DON'T KNOW IF IT MATTERS WESTPAC BANKING'S MR TAUBERMAN SAID ADDING GIVEN THE DISARRAY IN JAPAN AT THE MOMENT THE MARKET WILL FOCUS ON WHAT KANTOR SAYS MEANWHILE ECONOMIST C FRED BERGSTEN WHO MANY IN THE FOREIGNEXCHANGE MARKET SEE AS CLOSELY CONNECTED TO THE CLINTON ADMINISTRATION REITERATED HIS CALLS FOR A DOLLAR VALUED AT BELOW 100 YEN IF JAPAN FAILS TO SPUR ITS DOMESTIC ECONOMY AND OPEN ITS MARKETS TO US GOODS BUT MR TAUBERMAN SAID HE DOUBTS WHETHER TRADERS WILL TAKE TOO MUCH ADVANTAGE OF JAPAN'S FIX AND BASH THE DOLLAR WE'VE SEEN A TWOYEN SELLOFF HE SAID IN THE SCHEME OF SUCH UPHEAVAL IN JAPANESE POLITICS I THINK THAT'S RATHER SLIM 9404120004 940412 TECHNOLOGY & HEALTH XEROX SYSTEM TIES COPIERS TO COMPUTERS SOFTWARE COULD OPEN WAY FOR SPEEDY PUBLICATION OF BUSINESS DOCUMENTS BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK XEROX CORP HOPES TO MAKE A BIG SPLASH NEXT WEEK BY UNVEILING AN INNOVATIVE SOFTWARE SYSTEM THAT ENABLES COMPUTERS AND COPIERS TO INTERACT POTENTIALLY FREEING UP THE PRINTING AND PUBLISHING INDUSTRY TO CREATE HUGE LOADS OF DOCUMENTS AND BOOKS QUICKLY ON DEMAND XEROX IS IN TALKS TO LINE UP ENDORSEMENTS OF ITS NEW APPROACH FROM AS MANY AS 50 CORPORATE PARTNERS INCLUDING SUCH HEAVYWEIGHT PLAYERS AS AMERICAN TELEPHONE & TELEGRAPH CO AND ADOBE SYSTEMS CORP THE SYSTEM CODENAMED PROJECT TYPHOON INSIDE XEROX AND TO BE OFFICIALLY KNOWN BY THE TECHIE LABEL DOCUSP AIMS TO SERVE THE BILLIONDOLLAR INDUSTRY FOR SOCALLED OFFSET PRINTING IF IT SUCCEEDS IT COULD HAVE AN IMPACT ON HOW MILLIONS OF PAGES OF PRINT ARE HANDLED IN BUSINESSES EVERY YEAR BY ALLOWING CUSTOMERS AND PUBLISHERS TO PRINT AT SITES AS SMALL AS THE LOCAL COPIER SHOP ACCORDING TO EXPERTS FAMILIAR WITH THE PROJECT IT OPENS UP MASSIVE MARKETS SAID JOEL WECKSELL OF GARTNER GROUP A STAMFORD CONN CONSULTING FIRM WITH THE MOVE THE COPIER MAKER IS TRYING TO POSITION ITSELF FOR THE DIGITAL AGE AND TO PREVENT THE OBSOLESCENCE OF SOME OF ITS PREMIER PRODUCTS SUCH AS DOCUTECH A POWERFUL PRINTER THAT COPIES 135 PAGES A MINUTE DOCUSP WILL BE THE BIGGEST STEP XEROX HAS TAKEN SO FAR IN THAT DIRECTION THIS WILL BREATHE NEW LIFE INTO DOCTEC SAID ANALYST DANIEL MANDRESH OF MERRILL LYNCH & CO THE TECHNIQUE OF MODERN COMMUNICATIONS AND DOCUMENTATION ARE COMING TOGETHER COMPANY EXECUTIVES PROMISE MORE SUCH ANNOUNCEMENTS IN THE FUTURE AS THE DOCUMENT COMPANY WE HAVE TO MOVE BEYOND THE LIGHTLENS COPIER SAID PETER VAN CUYLENBERG EXECUTIVE VICE PRESIDENT AT XEROX SEEKING OUTSIDE BACKING RATHER THAN MOUNTING SUCH AN AMBITIOUS UNDERTAKING ON ITS OWN XEROX IS NEGOTIATING WITH MYRIAD POTENTIAL PARTNERS THEY INCLUDE APPLICATION SOFTWARE DESIGNERS SUCH AS ADOBE AND MOORE ADVANCED SERVICES INC AT&T AND OTHER LARGE TELECOMMUNICATIONS FIRMS OVER WHOSE NETWORKS HUGE ELECTRONIC FILES WOULD BE ZAPPED TO OFFICE GEAR AND SUCH PUBLISHING COMPANIES AS RR DONNELLY & SONS INC OF CHICAGO PEOPLE FAMILIAR WITH THE PROJECT SAID XEROX IS TRYING TO PROMOTE THE NEW SYSTEM AS AN OPEN DESIGN THAT WILL LET CUSTOMERS WORK WITH MANY DIFFERENT KINDS OF COMPUTERS AND APPLICATIONS SOME XEROX OFFICIALS HOPE DOCUSP WILL BECOME TO PRINTING OPERATIONS WHAT MICROSOFT CORP'S WINDOWS IS TO PERSONAL COMPUTERS XEROX STILL NEEDS TO OVERCOME SOME SIGNIFICANT CHALLENGES HOWEVER TO MAKE ANY OF THIS HAPPEN IT MUST LAND A PARTNERSHIP WITH AT&T FOR EXAMPLE TO GET HELP IN WRITING APPLICATIONS THAT WILL WORK OVER THE PHONE LINES AT&T AND XEROX DECLINED TO COMMENT ON THE DISCUSSIONS STILL THE COPIER MAKER'S PURSUIT OF SUCH PARTNERSHIPS HAS DRAWN PRAISE OPEN STANDARDS ARE A GOOD THING FOR XEROX TO BE DOING SAID AMY WOHL OF WOHL ASSOCIATES BALA CYNWYD PA XEROX HAS ALWAYS HAD INCREDIBLE TECHNOLOGY BUT GREAT DIFFICULTY FITTING IT INTO THE MARKETPLACE INITIALLY XEROX WILL AIM DOCUSP AT THE MARKET FOR COLLEGE TEXTBOOKS AND AT BANKS INSURANCE COMPANIES AND OTHER BUSINESS CUSTOMERS THAT USE A LOT OF FORMS EVENTUALLY IT COULD ALTER THE ENTIRE BOOKPUBLISHING INDUSTRY AS WELL SOME EXPERTS BELIEVE BY OFFERING HUGE COST SAVINGS IN STORAGE AND TRANSPORTATION TAKEN TOGETHER THAT WOULD EXPAND THE 14 BILLIONAYEAR COPYING MARKET NOT ONLY FOR XEROX BUT FOR OTHER COPY MAKERS AS WELL COPYING AND PRINTING TODAY IS A RELATIVELY RIGID PROCESS BECAUSE SOFTWARE HAS TO BE WRITTEN SPECIFICALLY FOR THE PRINTER OR SOMONE HAS TO STAND BY THE COPYING MACHINE PROVIDING THE PROPER COMMANDS DOCUSP OVERCOMES A MAJOR HURDLE BY PROVIDING A SOFTWARE DESIGN THAT ALLOWS COMPUTER NETWORKS SCANNERS DATASTORAGE DEVICES AND RETRIEVAL SYSTEMS TO WORK TOGETHER AS ONE SEAMLESS SYSTEM THE SOFTWARE RUNS ON A COMPUTER SERVER AND DIRECTS TRAFFIC AMONG ALL THOSE MACHINES AND THEIR VARIOUS APPLICATIONS THE GOAL IS TO GIVE A USER THE ABILITY TO DESIGN OR UPDATE A DOCUMENT IN ONE CITY AND PRINT IT OUT IN VOLUME AT A BOOK SHOP OR OFFICE IN ANOTHER CITY XEROX IS PLANNING TO ANNOUNCE NEW DEVICES FOR DOCUTECH ITS HIGHVOLUME COPIER THAT WILL BIND BOOKS ALREADY XEROX IS EXPERIMENTING WITH COURSE PACKETS ELECTRONICALLY AT CORNELL UNIVERSITY'S CAMPUS BOOKSTORE MOST TEXTBOOKS ARE OUT OF DATE IN 18 MONTHS THE TIME IT TAKES TO PUBLISH THEM SAID RICH MCDANIEL MANAGER OF THE STORE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY XEROX SHARES JUMPED 225 TO A 52WEEK HIGH OF 104 9404120003 940412 INTERNATIONAL SONY CDROMS FOR NOTEBOOKS TOKYO SONY CORP ANNOUNCED MONDAY THAT IT WILL START SAMPLE SHIPMENTS IN NOVEMBER OF COMPACTDISK READONLY MEMORY DRIVES WITH A THICKNESS OF 068 INCH FOR USE IN NOTEBOOKSTYLE PERSONAL COMPUTERS SONY SAID IT WOULD SELL THE 1225OUNCE HIGHVOLUME DATA RETRIEVAL DEVICES TO PC MAKERS FOR USE IN NOTEBOOK PCS WITH THICKNESSES OF ROUGHLY 16 INCHES IT SAID THE UNITS WOULD SELL FOR 54000 YEN 512 EACH 9404120002 940412 BUSINESS BRIEF AMPEX INC LOSS WIDENED IN 4TH PERIOD RESTRUCTURING CHARGES CITED AMPEX INC POSTED A WIDENED FOURTHQUARTER NET LOSS OF 214 MILLION OR 1157 A SHARE INCLUDING RESTRUCTURING CHARGES OF 2034 MILLION IN THE YEAREARLIER QUARTER THE REDWOOD CITY CALIF MAKER OF RECORDING SYSTEMS HAD A LOSS OF 249 MILLION OR 134 A SHARE SALES IN THE LATEST QUARTER FELL TO 391 MILLION FROM 553 MILLION AMPEX SAID THE CHARGES MOST OF WHICH WERE PREVIOUSLY ANNOUNCED RESULTED FROM WRITEDOWNS OF ASSETS RELATED TO ITS TELEVISION BUSINESS AND CERTAIN INTANGIBLES FOR THE YEAR AMPEX HAD A NET LOSS OF 2964 MILLION OR 1674 A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 714 MILLION OR 464 A SHARE THE 1993 RESULTS REFLECT RESTRUCTURING CHARGES OF 2305 MILLION IN NASDAQ STOCK MARKET TRADING AMPEX WAS QUOTED AT 2375 DOWN 125 CENTS 9404120001 940412 BUSINESS BRIEF U S WEST TO REDUCE SHARES IN OFFERING FOR ITS INSURANCE UNIT NEW YORK BOWING TO CONTINUED MARKET VOLATILITY AMONG INSURANCE STOCKS U S WEST INC SAID IT PLANS TO SHARPLY REDUCE THE NUMBER OF SHARES IN A PROPOSED PUBLIC OFFERING OF ITS BONDINSURANCE UNIT FINANCIAL SECURITY ASSURANCE HOLDINGS LTD IN DECEMBER U S WEST A REGIONAL TELEPHONE COMPANY POSTPONED A PLANNED INITIAL PUBLIC OFFERING OF FINANCIAL SECURITY CITING A WEAKNESS IN INSURANCE STOCKS FINANCIAL SECURITY SAID IT NOW PLANS TO FILE AN AMENDED REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 75 MILLION SHARES OR ABOUT 286 OF ITS SHARES DOWN FROM THE INITIALLY PLANNED OFFERING OF 135 MILLION SHARES IN A RELATED MOVE U S WEST SIGNED AN AGREEMENT TO SELL TWO MILLION OF THE 75 MILLION FINANCIAL SECURITIES IPO SHARES OR A 76 STAKE TO FUND AMERICAN ENTERPRISES HOLDINGS INC FUND AMERICAN IS A FINANCIAL SERVICES HOLDING COMPANY BASED IN NORWICH VT IT HAS ABOUT 33 BILLION IN ASSETS FUND AMERICAN WILL PAY THE SAME PRICE AS THE PUBLIC OFFERING FINANCIAL SECURITY'S ORIGINAL OFFERING PRICE WAS 23 TO 25 A SHARE ANALYSTS AT THE TIME HOWEVER HAD SUGGESTED SLUMPING INSURANCE STOCKS AND A GLUT OF INSURANCE OFFERINGS COULD FORCE FINANCIAL SECURITY TO LOWER ITS OFFERING PRICE FINANCIAL SECURITY HASN'T YET DISCLOSED A PERSHARE PRICE FOR THE 75 MILLION SHARE PUBLIC OFFERING FINANCIAL SECURITY GUARANTEES ASSETBACKED SECURITIES AND MUNICIPAL BONDS WORLDWIDE AND HAS 43 BILLION OF NET INSURANCE IN FORCE THE OFFERING IS PART OF A PLAN BY U S WEST BASED IN ENGLEWOOD COLO TO LEAVE THE FINANCIALSERVICES BUSINESS 9404120074 940328 STRONG ARM OF SINGAPORE LAW BY JONATHAN HOLBURT SINGAPORE A YOUNG AMERICAN WHO CONFESSED TO A 10DAY SPREE OF VANDALISM HERE HAS BEEN SENTENCED TO SIX STROKES OF THE CANE A 1400 FINE AND FOUR MONTHS IN JAIL IN RESPONSE TO THE CANING SENTENCE PRESIDENT CLINTON SAID THIS PUNISHMENT IS EXTREME AND WE HOPE VERY MUCH THAT IT WILL BE RECONSIDERED THE AMERICAN CHARGE D'AFFAIRES IN SINGAPORE HAS PROTESTED AS WELL BUT INSTEAD OF HOWLING IN SYMPATHY WITH THE BAD GUY AMERICAN OFFICIALS SHOULD ADMIRE THE SWIFT STRONG ARM OF SINGAPOREAN JUSTICE EIGHTEENYEAROLD MICHAEL FAY FROM DAYTON OHIO PLEADED GUILTY AFTER POLICE CHARGED HIM WITH VANDALISM FOR SPRAYPAINTING 18 CARS AND THROWING EGGS BRICKS AND FLOWER POTS AT THEM POLICE ALSO FOUND STOLEN SINGAPORE FLAGS AND STREET SIGNS IN MR FAY'S HOME HE WAS CONVICTED ON MARCH 3 OF VANDALISM AND POSSESSION OF STOLEN PROPERTY AND HIS SENTENCE IS LESS THAN THE MAXIMUM MANY AMERICANS IN SINGAPORE SAY MR FAY WHO IS OUT ON BAIL PENDING APPEAL GOT WHAT HE DESERVED BY CONTRAST US CHARGE D'AFFAIRES RALPH BOYCE OPPOSED MICHAEL FAY'S CANING ARGUING THE YOUTH WAS A FIRST OFFENDER THE DIPLOMAT ALSO PLEADED THAT CANING WOULD LEAVE A PERMANENT SCAR ON MR FAY WHILE MR FAY LEFT ONLY SOLUBLE MARKS ON THE CARS HE SPRAYPAINTED MR FAY HAS DONE MORE PERMANENT HARM THAN THE CHARGE D'AFFAIRES IS WILLING TO ACKNOWLEDGE HOWEVER AS ALL VICTIMS OF CRIME CAN ATTEST CRIMINAL ACTS CAUSE EMOTIONAL AS WELL AS PHYSICAL DAMAGE WHEN MICHAEL FAY SPRAYPAINTED THOSE CARS HE VIOLATED HIS VICTIMS' SENSE OF SECURITY AND TORE AWAY AT SINGAPORE'S IDENTITY AS A SAFE PLACE TO LIVE THIS FACT IS NOT LOST ON THE SINGAPORE GOVERNMENT TO KEEP CRIME AT BAY FIRST OFFENDERS ARE TREATED HARSHLY SO THAT THEY DON'T BECOME SECOND OFFENDERS A WHACK ON THE BACKSIDE WITH A BAMBOO STICK LEAVES A PERMANENT SCAR ON CRIMINALS SO THAT THEY DON'T FORGET THE POWER OF THE LAW CANING IS NOT AMONG SINGAPORE'S NOTORIOUS PRACTICES LIKE THE BAN ON CHEWING GUM IT IS A LEGITIMATE WAY FOR A SOCIETY TO PROTECT ITSELF SINGAPORE PRIDES ITSELF ON BEING A CONFUCIAN SOCIETY WHERE COLLECTIVE RIGHTS ARE MORE IMPORTANT THAN THE RIGHTS OF THE INDIVIDUAL THE OPPOSITE IS FREQUENTLY TRUE IN THE US WHERE THE RUGGED REBELLIOUS INDIVIDUAL HOLDS AN HONORED PLACE IN FOLKLORE SOME MIGHT ARGUE THAT MICHAEL FAY IS NOT A CRIMINAL BUT A TEENAGE REBEL LIKE JAMES DEAN IN REBEL WITHOUT A CAUSE THAT'S PLAIN WRONG IN THIS ERA OF RISING CRIME RATES AND QUIET DESPERATE FEAR IN MUCH OF THE AMERICAN POPULACE IT WOULD BE AN ACT OF POLITICAL BRAVERY AND SOCIETAL SALVATION TO RECOGNIZE THAT BEATING A CRIMINAL IS SOMETIMES THE SMARTEST THING TO DO THE US LEGAL ESTABLISHMENT PARTIAL TO JAIL SENTENCES AND MONETARY FINES CONSIDERS CANING TO BE CRUEL AND UNUSUAL PUNISHMENT SOMETHING WHICH IS SPECIFICALLY BANNED IN THE CONSTITUTION BUT WHAT CONSTITUTES CRUEL AND UNUSUAL PUNISHMENT IS CONSTANTLY BEING DEBATED IT TOOK YEARS OF DEBATE BEFORE THE US SUPREME COURT DECIDED THAT THE DEATH PENALTY DID NOT CONSTITUTE CRUEL AND UNUSUAL PUNISHMENT AND CLEARLY THE SINGAPORE GOVERNMENT THOUGH NOT BOUND BY US LAWS MAKES A SIMILAR ARGUMENT IN FAVOR OF CANING A SINGAPORE GOVERNMENT SPOKESMAN NOTED THAT THE CITYSTATE TREATS CRIMINALS FIRMLY TO AVOID THE FATE OF NEW YORK HE KNOWS WHAT HE'S TALKING ABOUT IN 1959 WHEN SINGAPORE BECAME SELFGOVERNING IT WAS LITTLE MORE THAN A BRITISH MILITARY BASE IT HAD NO NATURAL RESOURCES CRIME WAS RAMPANT SECRET CRIMINAL SOCIETIES HAD CONSIDERABLE POWER PROSTITUTION AND DRUG ADDICTION WERE WIDESPREAD THE COUNTRY WAS POOR ITS SLUMS NOTORIOUS SINGAPORE WAS ON NOBODY'S LIST OF MOST LIKELY TO SUCCEED THE PEOPLE'S ACTION PARTY STILL IN POWER TODAY CLEANED UP THE COUNTRY BLOCK BY BLOCK IT DID IT BY PASSING LAWS THAT ARE STRICTLY ENFORCED LITTER AND YOU WILL BE FINED MORE THAN 300 TRAFFIC IN DRUGS AND YOU WILL RECEIVE THE DEATH PENALTY THE RESULT HAS BEEN ASTONISHING SINGAPORE IS ONE OF THE SAFEST CITIES ON EARTH AND ITS PEOPLE AMONG THE MOST PROSPEROUS LAWS NEED TO BE STRICTLY ENFORCED AMERICANS HAVE HEARD TOO MANY STORIES ABOUT TURNSTILE JUSTICE JUVENILES ARE ARRESTED AND RELEASED ON THE SAME DAY CHILDREN WHO ADMIT KILLING THEIR PARENTS ARE NOT CONVICTED OF THE CRIME THERE HAVE BEEN FAR TOO MANY EXCEPTIONS TO THE RULES AND THESE EXCEPTIONS MAKE A MOCKERY OF THE RULES THEMSELVES ACCORDING TO SINGAPORE LAW MICHAEL FAY'S JUDGE COULD HAVE SENTENCED HIM TO 16 STROKES RATHER THAN JUST SIX BUT HE WAS LENIENT MR FAY'S CRIME SPREE TOOK PLACE OVER 10 DAYS IT WAS PREMEDITATED AND CALCULATED MR FAY AND HIS FRIENDS DID NOT SIMPLY GET DRUNK ONE NIGHT AND DECIDE TO RAISE HELL THEY SOBERLY AND DELIBERATELY DECIDED TO WREAK HAVOC THE PUBLIC DEBATE HAS MADE IT SEEM THAT SINGAPORE LAW IS RIGID AND UNYIELDING IT IS NOT THE JUDGE METED OUT THE PUNISHMENT THAT HE FELT WOULD BOTH FIT THE CRIME AND PREVENT ITS RECURRENCE MANY AMERICANS HERE AGREE WITH THE JUDGE AND AMERICANS AT HOME SHOULD TAKE NOTICE MR HOLBURT AN AMERICAN EXECUTIVE HAS LIVED IN SINGAPORE FOR SIX YEARS SEE RELATED LETTERS LETTERS TO THE EDITOR JUSTICE SERVED OR MEDIEVAL SADISM WSJ APRIL 12 1994 9403280060 YY94 MM04 9404120072 940204 THE AMERICAS BANK'S FAILURE SIGNALS END OF CRONYISM IN VENEZUELA BY CARLOS BALL THE JAN 13 COLLAPSE OF BANCO LATINO REPRESENTS MORE THAN THE END OF RECKLESS BANKING PRACTICES BY VENEZUELA'S SECONDLARGEST COMMERCIAL BANK IT ALSO MAY SIGNAL THE END OF AN ERA OF POLITICALCORPORATE CRONYISM THAT HAS CHARACTERIZED VENEZUELA'S CULTURE FOR THE PAST 20 YEARS IN THE LATE 1970S DURING EXPRESIDENT CARLOS ANDRES PEREZ'S FIRST ADMINISTRATION BANCO LATINO WAS KNOWN AS THE BANK OF THE 12 APOSTLES THE WORD APOSTLE WAS USED FOR THE DOZEN OR SO VENEZUELAN BUSINESSMEN CLOSE TO THE PRESIDENTIAL PALACE WHO BECAME MULTIMILLIONAIRES PRACTICALLY OVERNIGHT MOST OF THESE FORTUNES WERE MADE THROUGH PUBLIC CONSTRUCTION WORK AS WELL AS FOREIGN CONTRACTS IN LATIN AMERICAN COUNTRIES THAT WERE RECEIVING AID FROM THE OILRICH VENEZUELAN GOVERNMENT THE LAVISH SPENDING HABITS OF BANCO LATINO ASSOCIATES WERE WELL KNOWN PROBABLY NO OTHER BANK IN THE WORLD HAD MORE MEMBERS OF ITS BOARD WITH PRIVATE JETS BANCO LATINO'S CHAIRMAN GUSTAVO GOMEZ LOPEZ REPORTEDLY OWNED THREE LAST OCTOBER WHEN KNOWLEDGEABLE CORPORATE TREASURERS WERE ALREADY WITHDRAWING THEIR DEPOSITS FROM BANCO LATINO HUNDREDS OF CORPORATE CHIEF EXECUTIVES RECEIVED INVITATIONS TO ATTEND THE OPENING OF THE BANK'S PARIS OFFICE THE OFFER INCLUDED FREE FLIGHTS IN CHARTERED JETS AND AN ALLEXPENSESPAID THREENIGHT STAY AT THE CRILLON OR RITZ AS FOR BANKING PRACTICES CLIENTS WHO TOWARD THE END WANTED TO WITHDRAW THEIR CDS WERE OFFERED AN INTEREST RATE OF 105 ABOUT TWICE THE GOING RATE IT MAY NOT SEEM SURPRISING THAT THE FINANCIAL AUTHORITIES DIDN'T MORE CLOSELY MONITOR THE BANK'S OPERATIONS WHEN ONE EXAMINES THEIR COLLEGIAL RELATIONSHIP WITH BANCO LATINO FOGADE THE LOCAL EQUIVALENT OF THE FEDERAL DEPOSIT INSURANCE CORP HAD 3366 OF ITS FUNDS IN BANCO LATINO AND A FURTHER 1287 IN A CLOSELY RELATED BANK THOSE FUNDS WEREN'T EVEN IN HIGHLY LIQUID ASSETS AS THE LAW PRESCRIBES SOMETHING THAT SERIOUSLY COMPLICATES THE VENEZUELAN BANKING CRISIS BUT THEN THE HEAD OF FOGADE HAD NO PREVIOUS EXPERIENCE IN THE FINANCIAL WORLD AN ATTORNEY SHE WAS MARRIED TO THE FORMER CHIEF BODYGUARD AND CONFIDANT OF EXPRESIDENT PEREZ A NEW AND FAR MORE RESTRICTIVE BANKING LAW TOOK EFFECT JAN 1 TOO LATE TO SAVE BANCO LATINO BUT EVEN WITH THE NEW LAW BANCO LATINO HAD BEEN ASSOCIATED FOR SO LONG WITH THE RULING ELITE THAT BUREAUCRATS WEREN'T ABOUT TO PUT THEIR JOBS ON THE LINE INVESTIGATING IT THIS INCLUDES LEADERS OF BOTH MAJOR POLITICAL PARTIES THE AD AND COPEI THE LATEST ISSUE OF THE MOST RESPECTED LOCAL BANK RISK REPORT READS A TOLERANT AND PERMISSIVE ATTITUDE BY THE SUPERVISORY AGENCY FAVORS SPECULATIVE CONDUCT INSTIGATES NONCOMPLIANCE WITH THE LAW AND DOES NOT PENALIZE ACCOUNTING PRACTICES AND MANIPULATIONS THAT REDUCE THE TRANSPARENCY OF THE FINANCIAL STATEMENTS THINGS AT BANCO LATINO BEGAN TO GET SERIOUSLY OUT OF HAND AFTER THE BANK'S LONGTIME CHAIRMAN THE LATE PEDRO TINOCO WAS APPOINTED HEAD OF THE CENTRAL BANK IN FEBRUARY 1989 BY THE NOW IMPEACHED PRESIDENT PEREZ DURING MR TINOCO'S NEARLY FOURYEAR TENURE AT THE CENTRAL BANK HIS OWN BANCO LATINO REALLY TOOK OFF IN MARCH 1989 A SOPHISTICATED OPERATION CALLED DEBT RECONVERSION WAS ESTABLISHED BY PRESIDENTIAL DECREE THIS DECREE ALLOWED THE PURCHASE OF THE NATION'S FOREIGN DEBT AT PREVAILING MARKEDDOWN PRICES AND THE RESALE OF THAT SAME DEBT PACKAGE TO THE GOVERNMENT AT NEAR FACE VALUE THIS SCHEME WAS SET UP TO HELP TROUBLED COMPANIES AND THE FIRST BENEFICIARIES WERE NATURALLY COMPANIES OF THE APOSTLES OVER 50 OF ALL DEBT RECONVERSION DEALS WERE DONE THROUGH BANCO LATINO AFTER LEAVING THE CENTRAL BANK MR TINOCO RETURNED TO HIS LAW OFFICE AND TO HIS JOB AS CHAIRMAN OF CADA SUPERMARKETS PART OF THE CISNEROS CONGLOMERATE OF COMPANIES ORGANIZACION DIEGO CISNEROS MR TINOCO'S LAW FIRM PARTNERS TOGETHER WITH RICARDO CISNEROS YOUNGER BROTHER OF APOSTLE GUSTAVO CISNEROS AND GUSTAVO GOMEZ LOPEZ THE SONINLAW OF ANOTHER OF THE ORIGINAL 12 APOSTLES CONTROLLED BANCO LATINO AND SAT ON ITS BOARD ANOTHER BOARD MEMBER WAS FRANCISCO PEREZ A BROTHER OF PRESIDENT PEREZ THE TINOCO LAW FIRM REPRESENTS THE CHASE MANHATTAN BANK IN VENEZUELA AND PLAYED ON BOTH SIDES OF THE FENCE IN THE LONG INVOLVED AND VERY PROFITABLE DEALS CONCERNING THE COUNTRY'S FOREIGN DEBT SOON AFTER THE SECOND MILITARY COUP AGAINST THE PEREZ ADMINISTRATION ON NOV 27 1992 THE CISNEROS CONGLOMERATE STARTED TO REDUCE ITS EXPOSURE IN VENEZUELA ON DEC 4 1992 IT BORROWED 55 MILLION IN ORDER TO BUY IN PARTNERSHIP WITH MEXICO'S EMILIO AZCARRAGA THE LARGEST SPANISHLANGUAGE TELEVISION NETWORK IN THE US UNIVISION LATER CADA AND BANCO LATINO BEGAN TO BE SIPHONED OFF TO PURCHASE PUEBLO SUPERMARKETS IN PUERTO RICO AND XTRA SUPERMARKETS IN FLORIDA THE LOGIC BEHIND SUCH TRANSACTIONS IS NOT HARD TO DEDUCE PRESIDENT PEREZ'S POLITICAL SUPPORT HAD EVAPORATED WITH ACCUSATIONS OF FRAUD AND HIS LATER IMPEACHMENT THE CISNEROS MEDIA EMPIRE ALREADY HAD SWITCHED TO ENDORSING SOMEONE ELSE EDUARDO FERNANDEZ FOR PRESIDENT MR FERNANDEZ THE THENSECRETARY GENERAL OF THE SOCIAL CHRISTIAN PARTY COPEI LOST OUT IN THE PRESIDENTIAL PRIMARIES TO OSWALDO ALVAREZ PAZ THE CISNEROS GROUP THEN IMMEDIATELY THREW ITS BACKING TO GOV ALVAREZ WHILE CAMPAIGN CONTRIBUTIONS AREN'T MADE PUBLIC IT WAS WIDELY KNOWN THAT BANCO LATINO HAD BECOME THE LARGEST CONTRIBUTOR TO GOV ALVAREZ'S CAMPAIGN IN FACT ONE OF THE PRINCIPAL REASONS WHY GOV ALVAREZ LOST THE PRESIDENTIAL ELECTION LAST DECEMBER TO RAFAEL CALDERA WAS PROBABLY VOTER CONCERN OVER HIS TIES TO SEVERAL BUSINESSMEN WHO HAD GREATLY BENEFITED FROM THE PEREZ DEBT RECONVERSION AND PRIVATIZATION PROGRAMS WITH MESSRS PEREZ AND ALVAREZ OUT OF THE POLITICAL ARENA AND WITH FORMER PRESIDENT CALDERA AN OUTSPOKEN OPPONENT OF CORRUPTION IN HIGH PLACES BACK IN THE PRESIDENTIAL PALACE AS OF WEDNESDAY IT SEEMS MORE THAN LIKELY THAT THE GROUP THAT HAD FLOURISHED THROUGH ITS POLITICAL CONNECTIONS DECIDED TO CUT ITS LOSSES WIPE THE SLATE CLEAN AND GET OUT OF VENEZUELA THE COLLAPSE OF BANCO LATINO LEAVES ONE MILLION ACCOUNTHOLDERS PRESSURING THE GOVERNMENT TO LIVE UP TO ITS IMPLICIT GUARANTEE TO COVER ALL DEPOSITS NOT JUST THE FIRST 9300 INSURED BY FOGADE ON THEIR SIDE IS THE FACT THAT MOST OF THE MONEY BELONGING TO THE STATE OIL CORPORATION PENSION FUNDS AND THE PENSION FUNDS OF THE ARMED FORCES WERE MANAGED BY BANCO LATINO COLONELS WITHOUT PENSIONS PRESENT A VERY REAL RISK TO ANY LATIN AMERICAN GOVERNMENT MR BALL IS A VENEZUELAN JOURNALIST AND PRESIDENT OF AGENCIA INTERAMERICANA DE PRENSA ECONOMICA AN ECONOMIC NEWS AND SYNDICATION SERVICE FOR SPANISHLANGUAGE NEWSPAPERS SEE RELATED LETTER LETTERS TO THE EDITOR THE TRUTH ABOUT OUR FAMILY BUSINESS WSJ JAN 8 1994 SEE RELATED LETTER LETTERS TO THE EDITOR BANK DRIVEN TO FAILURE FOR POLITICAL REASONS WSJ APRIL 12 1994 9402040083 YY94 MM04 9404110158 940411 INTERNATIONAL HOSOKAWA'S DEPARTURE PROMISES SHORTTERM INSTABILITY BY STAFF REPORTERS MICHAEL WILLIAMS JATHON SAPSFORD AND DAVID P HAMILTON TOKYO AMID JAPAN'S SCRAMBLE TO FIND A NEW PRIME MINISTER FRONTRUNNER TSUTOMU HATA THIS WEEKEND TOOK THE PODIUM AT THE POSH HOTEL OKURA TO REASSURE A MEETING OF THE BLUERIBBON TRILATERAL COMMISSION DON'T WORRY THE JAPANESE FOREIGN MINISTER CONFIDENTLY TOLD LEADERS FROM THE US JAPAN AND EUROPE TOKYO WILL CONTINUE ITS POLITICAL AND ECONOMIC REFORMS BUT MR HATA CONCEDED THE TUMULT MEANS HE MIGHT NOT MAKE IT TO THIS WEEK'S WORLD TRADE TREATY SIGNING IN MOROCCO WHERE HE HAD BEEN HOPING TO JUMP START STALLED US TRADE TALKS BY MEETING WITH TRADE REPRESENTATIVE MICKEY KANTOR THE RESIGNATION FRIDAY OF PRIME MINISTER MORIHIRO HOSOKAWA WHO STAYS IN POWER UNTIL JAPANESE LAWMAKERS CAN PICK A SUCCESSOR USHERS IN AN EXTENDED PERIOD OF UNCERTAINTY IN THE WORLD'S SECOND BIGGEST ECONOMY AFTER ONLY EIGHT MONTHS IN POWER MR HOSOKAWA LEAVES A NATION IN THE MIDST OF WRENCHING ECONOMIC AND POLITICAL CHANGE AND THERE'S NO TURNING BACK BUT SHORTTERM PROSPECTS HAVE SUDDENLY BECOME MUCH CLOUDIER THE RULING SEVENPARTY COALITION FAILED FOR THE SECOND CONSECUTIVE DAY YESTERDAY TO REACH AN ACCORD ON A NEW LEADER FRIENDS ARE ARGUING WITH FRIENDS SAID A COALITION LEGISLATOR SCURRYING OUT OF A MEETING AND FORMER ENEMIES ARE HAVING QUIET CONVERSATIONS WITH ONE ANOTHER INDEED IT'S GETTING HARDER TO TELL THEM APART A MEMBER OF THE SOCIALISTS THE COALITION'S LARGEST PARTY CALLED AN ABRUPT END TO YESTERDAY'S COALITION MEETING AFTER LESS THAN AN HOUR PROMPTING THE SHINSEITO PARTY OF WHICH MR HATA IS COLEADER TO THREATEN A BOYCOTT OF TODAY'S TALKS IF AND WHEN THE COALITION DOES SELECT A NEW LEADER WHICH THEY PROMISE TO DO THIS WEEK THE PROSPECT IS FOR GREATER POLITICAL INSTABILITY UNTIL JAPAN IS GOVERNED BY POLITICIANS BACKED BY A SOLID WORKING MAJORITY IN THE INTERIM IT'S HARD TO SEE ANYTHING BUT UTTER CONFUSION SAYS GERALD CURTIS A COLUMBIA UNIVERSITY PROFESSOR OF POLITICAL SCIENCE IN NEW YORK HE AND OTHER OBSERVERS PREDICT THAT PUTTING TOGETHER A TRULY STABLE GOVERNMENT COULD TAKE EIGHT MONTHS TO A YEAR OR MORE THE COSTS COULD BE SIGNIFICANT THE CURRENT SITUATION RISKS TIPPING JAPAN INTO A TRIPLEDIP RECESSION BY UNDERMINING BUSINESS CONFIDENCE AND BOOSTING THE YEN WHICH HURTS EXPORTERS AND WITH ALL EYES IN TOKYO ON THE DOMESTIC POWER STRUGGLE WASHINGTON WON'T MAKE MUCH PROGRESS ON THE ISSUES IT CARES MOST ABOUT GETTING JAPAN TO STIMULATE DOMESTIC DEMAND AND PROMOTE IMPORTS USJAPAN TRADE RELATIONS ARE DOOMED TO BE BESET BY FRICTION FOR MANY MONTHS TO COME SAYS ROBERT HORMATS VICE CHAIRMAN OF GOLDMAN SACHS INTERNATIONAL BUT THE US AND JAPAN'S OTHER ALLIES CAN ALSO TAKE HEART WHILE MR HOSOKAWA'S POLITICAL DEMISE MAY RETARD THE REFORMS WASHINGTON HOPED HE WOULD DELIVER JAPAN ALREADY IS MOVING ALBEIT SLOWLY TO TRANSFORM ITSELF INTO THE CONSUMERDRIVEN IMPORT SUPERPOWER WASHINGTON HAS LONG SOUGHT INDEED IMPORTS MANY OF THEM FROM AMERICA ARE SURGING DESPITE THE ECONOMIC GLOOM AND MR HOSOKAWA'S BUZZWORDS OF CONSUMER EMPOWERMENT AND DEREGULATION HAVE HIT A POPULAR CHORD POLITICALLY MR HOSOKAWA'S LASTING LEGACY IS THAT JAPAN WON'T SLIP BACK INTO THE CONTROL OF THE OPAQUE AND GRAYING LEADERSHIP OF ITS RECENT PAST INDEED HOURS AFTER MR HOSOKAWA'S RESIGNATION GRIMFACED LEADERS OF NOWOPPOSITION LIBERAL DEMOCRATIC PARTY WHICH FACES ITS OWN DIVISIONS OVER POLICY AND LOYALTIES FILED INTO A SMOKY ROOM TO PLOT TACTICS BUT THE ATTENDEES WHO INCLUDED FORMER PREMIERS YASUHIRO NAKASONE AND KIICHI MIYAZAWADECIDED THERE IS LITTLE THE LDP CAN DO RIGHT NOW A PARTY AIDE SAID NEW ELECTORAL RULES THAT COME INTO FORCE LATER THIS YEAR SHOULD COMPEL POLITICIANS TO BE MORE RESPONSIVE ON TAX CUTS LOWER PRICES AND OTHER ISSUES THAT VOTERS AND THE CLINTON ADMINISTRATION CARE ABOUT AND A STRONG YEN COMBINED WITH CORPORATE AND HOUSEHOLD CUTBACKS IN AN ERA OF SLOWER GROWTH IS UNLEASHING AN IMPORT BOOM THAT ECONOMISTS EXPECT TO CONTINUE FOR YEARS MR HOSOKAWA'S TENURE WAS SHORT BUT IT WAS INTENSE SAYS KUNIKO INOGUCHI PROFESSOR OF POLITICAL SCIENCE AT SOPHIA UNIVERSITY IN TOKYO SHE BRIEFLY RECOUNTS THE HIGHLIGHTS OF HIS EIGHTMONTH TENURE POLITICAL REFORM OPENING JAPAN'S RICE MARKET TO IMPORTS PUSHING ECONOMIC DEREGULATION ACKNOWLEDGING JAPAN'S WARTIME BEHAVIOR IT WOULD BE VERY HARD TO NULLIFY THE NEW WIND HE STARTED SHE SAYS IN PARTICULAR THE POLITICAL REFORM BILL PASSED EARLIER THIS YEAR ALREADY ENSURES THAT POWER WILL SHIFT IN FUTURE ELECTIONS TO URBAN VOTERS PEOPLE MORE IN TUNE WITH THE COALITION'S BRAND OF TAXCUTTING CONSUMERISM AND DEREGULATION THAN THE RURAL ELECTORATE THEY ARE PEOPLE SUCH AS KOSHI HIDAKA A TOKYO OFFICE WORKER WHO SAYS THAT WHETHER MR HOSOKAWA IS IN CHARGE OR NOT HE WANTS TO SEE A STIMULATED ECONOMY AND INTEREST RATES ABOVE THEIR CURRENT RECORD LOWS SO I CAN GET HIGHER INTEREST ON MY SAVINGS INDEED EVEN THE CIRCUMSTANCES OF MR HOSOKAWA'S RESIGNATION BEAR THE HALLMARKS OF A CHANGING JAPAN WHILE ON THE SURFACE HE WAS FELLED BY A FINANCIALCORRUPTION SCANDAL SIMILAR TO ONES THAT HAVE CLAIMED FOUR PRIME MINISTERS IN ROUGHLY AS MANY YEARS THE ALLEGATIONS OF HIS MISCONDUCT ACCEPTING A 100 MILLION YEN LOAN FROM TRUCKING COMPANY SAGAWA KYUBINWERE ONLY THE TRIGGER OF HIS DOWNFALL MR HOSOKAWA IS A VICTIM OF POLITICAL SQUABBLES BOTH WITHIN HIS COALITION AND WITH THE OPPOSITION LDP THAT STEM AS MUCH FROM POWER GRABS AS FROM POLICY SUCH PUBLIC BATTLING IS A NEW FIXTURE OF THE JAPANESE POLITICAL LANDSCAPE WHOSE IMPACT IS TO MAKE JAPAN HARDER TO GOVERN UNLIKE PREDECESSORS THOUGH MR HOSOKAWA DIDN'T SCRAMBLE TO KEEP HIS POST STUNNING EVEN CLOSE ALLIES IRONICALLY JAPAN'S EDITORIALISTS YESTERDAY LAMBASTED THE RESIGNATION BY THE 56YEAROLD PREMIER AS IRRESPONSIBLE MR HOSOKAWA'S DEPARTURE MARKS THE START OF A SECOND STAGE OF POLITICAL REALIGNMENT THAT BEGAN LAST SUMMER WHEN HE AND OTHER REFORMISTS FORCED THE LIBERAL DEMOCRATS OUT OF POWER AFTER A 38YEAR REIGN WHEN THE DUST SETTLES MOST EXPERTS EXPECT A NEW JAPANESE POLITICAL LANDSCAPE TO BE DOMINATED BY TWO OR THREE MAJOR POLITICAL PARTIES DOWN FROM NINE CURRENTLY WHICH OUGHT TO MAKE IT EASIER TO GOVERN JAPAN IN THE MEANTIME THERE IS LIKELY TO BE GREATER SHORTTERM VOLATILITY IF EVEN THE CORRUPTIONCUTTING MR HOSOKAWA WHO DREW TREMENDOUS SUPPORT INITIALLY FOR HIS NEW CLEAN IMAGE HAS A SKELETON IN THE CLOSET ANY SUCCESSOR PROBABLY WILL TOO UNLESS THE NEXT PRIME MINISTER IS SNOW WHITE JOKES PAUL SUMMERVILLE RESEARCH DIRECTOR AT LEHMAN BROTHERS IN TOKYO THE SHORTTERM SCENARIOS BEING SPUN OUT IN TOKYO ALL POINT TO A ROCKY RIDE AHEAD THE CURRENT ALLIANCE SPANS THE SPECTRUM FROM SOCIALISTS TO CONSERVATIVES WITH A BUDDHISTBACKED PARTY IN BETWEEN MANY OF THEM SHARPLY DIVIDED ON ISSUES RANGING FROM TAX POLICY TO DEFENSE IF THE COALITION FAILS TO AGREE IT MIGHT BE REPLACED BY A NEW ALLIANCE BETWEEN DEFECTORS FROM THE LIBERAL DEMOCRATS AND EITHER MODERATES OR CONSERVATIVES FROM THE COALITION EITHER BLOC MIGHT BE MORE STABLE BUT AGAIN IT WOULDN'T MATCH MR HOSOKAWA'S PUBLIC BACKING SHOULD THE POLITICIANS FAIL TO FORM A GOVERNMENT THERE COULD BE NEW ELECTIONS A MOVE THAT WOULD THROW JAPAN INTO MONTHS OF GRIDLOCK ON THE STREETS OF TOKYO SUCH CONSUMERS AS JUN TANAKA A 26YEAROLD EMPLOYEE OF A SECURITIES FIRM SAY THEY ARE STAYING THE COURSE OF REFORM HOSOKAWA DID A GOOD JOB HE SAYS THE TREND OF CHANGE WILL CONTINUE JUST AS SURELY AS WATER FLOWS DOWNHILL EQUALLY IRRESISTIBLE FORCES ARE SURGING THROUGH JAPAN'S ECONOMY TO AMERICA'S BENEFIT A STRONG YEN MAKES IT CHEAPER TO BUY FOREIGN GOODS 19 CHEAPER SINCE THE BEGINNING OF LAST YEAR JAPAN'S EXTENDED DOWNTURN HAS SQUEEZED HOUSEHOLDS AND COMPANIES FORCING THEM TO SEEK OUT BARGAINPRICED GOODS THE RESULT IS AN IMPORT BINGE JAPAN'S VOLUME OF GOODS PURCHASED FROM THE US HAS RISEN FOR MONTHS AND AT A STEADILY ACCELERATING PACE ECONOMISTS IN TOKYO EXPECT THE GAINS TO CONTINUE A NUMBER OF THESE TRENDS ARE UNDER WAY AND CAN SUSTAIN THEMSELVES SAYS MR HORMATS THAT'S GOING TO BE TRUE NO MATTER WHO'S IN POWER AT THE SAME TIME THOUGH THE POLITICAL TURMOIL POSES A POTENTIAL SETBACK TO THE ECONOMY WHICH HAS LATELY SHOWN A FEW HINTS OF REVIVING FROM ITS THREEYEAR STOPANDGO SLUMP EVEN BEFORE THE RESIGNATION MOST ECONOMISTS HAD BEEN CALLING FOR GROWTH OF LESS THAN 1 THIS YEAR ALTHOUGH FEW ARE REVISING DOWN THEIR ESTIMATES YET MANY JAPANESE EXECUTIVES FEAR A BLOW TO CONFIDENCE BOTH BUSINESS AND CONSUMER IF THE CONSUMER FALTERS THEN THAT'S IT FOR THE RECOVERY SAYS JAMES VESTAL ECONOMIST AT BARCLAYS DE ZOETE WEDD SECURITIES JAPAN LTD HE THINKS JAPAN'S GDP IS SET TO RISE JUST 05 THIS YEAR AFTER A MEAGER 01 RISE LAST YEAR THE MOST IMPORTANT BAROMETER OF THE TURMOIL'S IMPACT ON THE ECONOMY MAY BE THE YEN POLITICAL UNCERTAINTY NORMALLY WEAKENS A NATION'S CURRENCY THAT WOULD BE A BLESSING FOR JAPAN SINCE A STRONG YEN IS MAKING ITS GOODS MORE EXPENSIVE AND HENCE LESS COMPETITIVE ABROAD BUT MORGAN STANLEY ECONOMIST MINEKO SASAKISMITH SAYS THE LIKELIHOOD OF FURTHER DELAYS ON USJAPAN TRADE MEANS THE MARKETS EXPECT WASHINGTON TO TALK UP THE YEN SHE THINKS THE YEN WILL BE CAUGHT IN A TUG OF WAR BETWEEN UPWARD AND DOWNWARD PRESSURES TRADING THIS WEEK BETWEEN 103 YEN AND 106 YEN TO THE DOLLAR THE SITUATION SHOULD KEEP THE DOLLAR FROM RISING MUCH BEYOND 108 YEN TO 110 YEN BY YEAR'S END SHE SAYS A RATE OF 110 YEN IS CONSIDERED TO BE THE MAKEORBREAK POINT FOR MANY EXPORTERS JAPAN'S VULNERABILITY ALSO MEANS THE US SHOULD RETHINK ITS HARDBALL TRADE TACTICS OBSERVERS IN TOKYO SAY THE COLLAPSE OF THE USJAPAN TRADE TALKS WAS ONE IN A SERIES OF EMBARRASSING POLITICAL DEFEATS THAT UNDERMINED MR HOSOKAWA JAPAN'S LEADING ADVOCATE OF THE KINDS OF REFORMS WASHINGTON SEEKS THERE'S NO QUESTION THE CLINTON ADMINISTRATION HELPED DESTROY THE HOSOKAWA GOVERNMENT SAYS MR CURTIS OF COLUMBIA UNIVERSITY THE SILVER LINING IN THIS STORM CLOUD IS THAT IT GIVES THE CLINTON ADMINISTRATION A GOLDEN OPPORTUNITY TO CALL A CEASEFIRE IN ITS TRADE FEUD WITH JAPAN INDEED OFFICIALS IN WASHINGTON SAY THEY HAD ALREADY PLANNED TO TEMPORARILY SCALE BACK THE PRESSURE ON TOKYO FEARING THAT THEY HAD BEGUN TO OBSESS ABOUT THE ISSUE WHILE THE US WILL PROBABLY TARGET ALLEGEDLY UNFAIR GOVERNMENT PURCHASING PRACTICES ON APRIL 30 A DEADLINE SET BY CONGRESS OFFICIALS SAY ACTION ISN'T VERY LIKELY FOR MONTHS AFTER THAT IN WASHINGTON SECRETARY OF STATE WARREN CHRISTOPHER SAID THAT I'M SURE WE'LL BE ABLE TO WORK WELL WITH WHOEVER IS SELECTED AS THE NEXT PRIME MINSITER APPEARING ON NBC NEWS'S MEET THE PRESS YESTERDAY MR CHRISTOPHER REJECTED THE NOTION THAT US PRESSURE ON JAPAN TO OPEN ITS MARKETS HAD PLAYED A ROLE IN MR HOSOKAWA'S POLITICAL DEMISE WITH PRIME MINISTER HOSOKAWA WE WERE PUSHING AGAINST AN OPEN DOOR IF YOU READ THE THINGS HE WROTE BEFORE HE BECAME PRIME MINISTER HE WAS VERY SUPPORTIVE OF INCREASING ACCESS MR CHRISTOPHER ADDED WE'LL CONTINUE WITH THE FRAMEWORK AGREEMENT PURSUING THE FRAMEWORK AGREEMENT TRYING TO GET COMPLIANCE WITH THAT WITH WHATEVER GOVERNMENT COMES INTO OFFICE 9404110157 940411 CHEMICAL SECTOR GREW STRONGER IN 1ST QUARTER EARNINGS AIDED BY INCREASE IN DOMESTIC DEMAND WORST MAY BE OVER BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHEMICAL MAKERS' FIRSTQUARTER EARNINGS WILL REFLECT CONTINUED STRENGTHENING IN DOMESTIC DEMAND BOLSTERED BY TENTATIVE IMPROVEMENT IN THE BATTERED EUROPEAN CHEMICALS MARKETPLACE ANALYSTS SAY THE CHEMICAL INDUSTRY REMAINS IN A CYCLICAL LOW BUT MANY OBSERVERS FEEL THE INDUSTRY'S LONG SLIDE BOTTOMED OUT LATE LAST YEAR AND WITH THE WORST BEHIND THEM CHEMICAL MAKERS HAVE ENTERED A SLOW RECOVERY AS A RESULT YEARONYEAR EARNINGS COMPARISONS ARE EXPECTED TO BE POSITIVE NOT JUST FOR THE LATEST PERIOD BUT FOR SOME TIME TO COME IT'S POSSIBLE TO ARGUE TODAY THAT MANY OF THE PETROCHEMICAL AND PLASTICS COMPANIES HAVE SEEN THEIR LAST NEGATIVE EARNINGS COMPARISON FOR THE NEXT THREE TO FOUR YEARS KIDDER PEABODY ANALYST PAUL LEMING WROTE IN A RECENT REPORT BUT HE MAINTAINS A CAUTIOUS VIEW FOR 1994 HE SAYS INVESTORS WHO HAVE BID UP PETROCHEMICAL MAKERS' SHARES IN RECENT MONTHS SHOULD BE FOCUSED ON THE RATE AT WHICH EARNINGS IMPROVE RATHER THAN REACTING TO THE INDUSTRY BEING POISED FOR EARNINGS UPTURNS IN COMING YEARS AS IN THE FOURTH QUARTER THE VOLUME OF CHEMICALS AND PLASTICS SHIPPED WILL SHOW A RISE IN THE FIRST QUARTER THE BOOMING AUTO AND HOUSING INDUSTRIES HELPED MANY CHEMICAL COMPANIES' US SALES LOWER PETROLEUM PRICES MADE SOME PETROCHEMICAL COMPANIES' FEEDSTOCKS CHEAPER LOWERING THEIR PRODUCTION COST BASIS PERHAPS MOST IMPORTANT RESTRUCTURING MOVES AT SOME COMPANIES ARE BEARING THE FRUIT OF IMPROVED MARGINS SUCH MOVES CONTRIBUTED SIGNIFICANTLY TO HIGHER FOURTHQUARTER EARNINGS AT DUPONT CO DOW CHEMICAL CO MONSANTO CO AND UNION CARBIDE CORP AND ARE EXPECTED TO HELP COMPARISONS FOR THE LATEST PERIOD BUT EXCESS CAPACITY STILL PLAGUED THE INDUSTRY IN THE FIRST QUARTER DEPRESSING PRICES FOR MANY BULK AND COMMODITY CHEMICALS AND WHILE THE ECONOMIES OF EUROPE AND ASIA MAY BE SHOWING INCREMENTAL IMPROVEMENT THOSE MARKETS REMAINED SUBDUED COMPARED WITH THE RELATIVELY ROBUST NORTH AMERICAN MARKET ANALYSTS' PROJECTIONS FOR SOME OF THE BIGGEST PLAYERS UNDERSCORE THE INDUSTRY'S DYNAMICS AT WILMINGTON DELBASED DUPONT THE NATION'S BIGGEST CHEMICAL MAKER CONTINUED WEAKESS IN OIL PRICES HURT RESULTS FOR ITS CONOCO ENERGY UNIT BECAUSE THERE'S A LAG BETWEEN THE TIME OIL PRICES FALL AND THE EFFECT ON CONOCO THE 1993 FOURTH QUARTER'S RESULTS WEREN'T HURT UNTIL LATE IN THE PERIOD IN THE LATEST QUARTER THE LAG WASN'T A FACTOR AND CONOCO'S EARNINGS SUFFERED DESPITE CUTTING COSTS BUT SG WARBURG ANALYST PAUL RAMAN SAYS FUNDAMENTAL BUSINESS CONDITIONS HAVE BEEN IMPROVING FOR DUPONT AND SEVERAL KEY BUSINESSES ARE POISED TO SHOW SIGNIFICANT IMPROVEMENT AMONG POSITIVE FACTORS HE SEES ARE HIGHER VOLUME AND A PRICE INCREASE FOR A KEY TITANIUM DIOXIDE PAINT ADDITIVE OTHER BUSINESSES SUCH AS NYLON AND AGRICULTURAL PRODUCTS HAVE A POSITIVE OUTLOOK BECAUSE OF IMPROVED VOLUMES LOWER COSTS AND THE POSSIBILITY OF SOME PRICING IMPROVEMENT VOLUME GROWTH AND COST CUTTING SHOULD HAVE HELPED EARNINGS BY 25 CENTS A SHARE HE ESTIMATES ON THE NEGATIVE SIDE PRICES SLID ABOUT 1 WHICH TRIMMED PROFIT FIVE CENTS A SHARE MR RAMAN ESTIMATES CURRENCY VARIATIONS ARE EXPECTED TO SHOW A NEGATIVE IMPACT OF TWO CENTS A SHARE LOWER OIL PRICES ARE EXPECTED TO SHOW A NEGATIVE VARIANCE OF SEVEN CENTS A SHARE AND THE NEGATIVE IMPACT OF STARTUP COSTS ARE ESTIMATED AT FIVE CENTS A SHARE ALL TOLD I'M LOOKING FOR 70 CENTS FOR THE QUARTER COMPARED WITH NET INCOME OF 68 CENTS A SHARE A YEAR EARLIER HE SAYS ANALYSTS EXPECT ST LOUISBASED MONSANTO TO REPORT FIRSTQUARTER EARNINGS OF ABOUT 153 A SHARE COMPARED WITH 99 CENTS A SHARE A YEAR EARLIER LOWER PETROLEUM PRICES WERE HELPFUL AS WERE MONSANTO'S INTERNAL COST CUTS AND CONTINUED STRENGTH IN ITS AGRICULTURALPRODUCTS SECTION A BIG SUPPLIER OF PLASTICS TO US AUTO MAKERS MONSANTO WAS HELPED BY THAT INDUSTRY'S SOLID SALES AND THE HOUSING INDUSTRY'S UPTURN BENEFITED THE COMPANY'S CARPETFIBERS OPERATION 9404110156 940411 FLEET AND BANK OF NEW YORK DISCUSS MERGER TALKS CALLED EXPLORATORY COMBINATION WOULD BE DOMINANT IN NORTHEAST BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL BANK OF NEW YORK CO AND FLEET FINANCIAL GROUP INC ARE IN DISCUSSIONS ABOUT A POSSIBLE COMBINATION AMID GROWING SIGNS THAT MERGER FEVER IS SPREADING IN THE BANKING INDUSTRY THE TWO BANKS DECLINED TO COMMENT BUT INDIVIDUALS FAMILIAR WITH THE TALKS SAID THEY ARE AT AN EXPLORATORY STAGE AND THE TWO SIDES ARE FAR FROM AN AGREEMENT MOREOVER A MERGER WOULD BE DIFFICULT AT THIS TIME BECAUSE FLEET IS IN THE MIDST OF A COSTCUTTING PLAN THAT WON'T BE COMPLETED UNTIL APRIL 1995 ONE INDIVIDUAL SUGGESTED HOWEVER THAT THE COSTCUTTING PROGRAM WOULDN'T PREVENT A MERGER BECAUSE SUCH TRANSACTIONS CAN TAKE MONTHS TO WORK OUT AND EVEN MORE TIME FOR REGULATORY AND SHAREHOLDER APPROVAL BOTH COMPANIES HAVE SAID THEY ARE INTERESTED IN ACQUISITIONS ALTHOUGH FLEET CHAIRMAN TERRENCE MURRAY HAS BEEN MORE VOCAL ABOUT A MERGER WITH A SIMILARSIZE INSTITUTION OUTSIDE FLEET'S NEW ENGLAND TERRITORY ONE GOAL OF THE COSTCUTTING WAS GETTING THE BANK IN SHAPE FOR A POSSIBLE MERGER OR ACQUISITION IF COMPLETED A MERGER OF THE TWO BANKS EACH OF WHICH HAS SLIGHTLY MORE THAN 45 BILLION IN ASSETS WOULD CREATE THE NATION'S SEVENTHLARGEST BANKING COMPANY AND THE DOMINANT REGIONAL BANK IN THE NORTHEAST NEW YORK CITYBASED BANK OF NEW YORK WITH 383 BRANCHES IS THE BIGGEST BANK IN SUBURBAN NEW YORK AND LAST YEAR EXPANDED INTO NEW JERSEY FLEET BASED IN PROVIDENCE RI IS THE BIGGEST BANK IN NEW ENGLAND WITH 800 BRANCHES AND HAS OPERATIONS IN NEW YORK STATE AS WELL SUCH A MERGER WOULD BE MUCH LIKE THE 4 BILLION DEAL BETWEEN KEYCORP AND SOCIETY CORP EARLIER THIS YEAR WHICH COMBINED SIMILARSIZE COMPANIES BANK OF NEW YORK EARNED 559 MILLION LAST YEAR AND HAS A MARKET VALUE OF ABOUT 486 BILLION WHILE FLEET EARNED 488 MILLION AND HAS A MARKET VALUE OF ABOUT 54 BILLION FLEET'S STOCK HAS CLIMBED THIS YEAR AS A RESULT OF ITS COSTCUTTING PROGRAM AS WELL AS RECENT REPORTS ABOUT A MERGER ON THURSDAY BLOOMBERG BUSINESS NEWS REPORTED THAT THE TWO FIRMS HELD MERGER DISCUSSIONS WITHIN THE PAST MONTH ON FRIDAY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FLEET CLOSED AT 39625 UP 1125 A 52WEEK HIGH BANK OF NEW YORK CLOSED AT 52 DOWN 125 CENTS INVESTMENT BANKERS NOT INVOLVED IN THE DEAL SAY A COMBINATION OF THE TWO BANKS MAKES SENSE FOR SEVERAL REASONS WHILE THE TRANSACTION WOULDN'T BE DRIVEN SOLELY BY EXPENSE REDUCTIONS BANK OF NEW YORK AND FLEET COULD WRING SAVINGS OUT OF OVERLAPPING OPERATIONS IN NEW YORK IN PARTICULAR THEY WOULD BE ABLE TO CLOSE BRANCHES WHICH ARE INCREASINGLY VIEWED AS AN EXPENSIVE MEANS TO DISTRIBUTE PRODUCTS AND SERVICES IN ADDITION BOTH HAVE MORTGAGE COMPANIES THAT COULD BE COMBINED BANKERS AND ANALYSTS SAY A COMBINATION WOULD ALLOW THE BANKS TO SPREAD THEIR RESPECTIVE PRODUCTS ACROSS A BROADER CUSTOMER BASE AND BECOME MORE EFFICIENT BANK OF NEW YORK'S FASTGROWING CREDITCARD OPERATIONS COULD BE MARKETED THROUGH FLEET'S SPRAWLING CONSUMER BANK FOR INSTANCE THE QUESTION OF WHO WOULD CONTROL THE COMBINED INSTITUTION IS A THORNY ONE THE CHAIRMAN OF BANK OF NEW YORK J CARTER BACOT IS 61 YEARS OLD AND MUST RETIRE BY AGE 65 FLEET'S MR MURRAY IS 54 AND COULD TAKE THE REINS EVENTUALLY IT IS POSSIBLE THAT MR MURRAY WOULD STEP DOWN AND MR BACOT WOULD RUN THE COMPANY FOR A FEW YEARS PEOPLE WHO KNOW BOTH OF THEM SAY IT'S UNCLEAR WHO THE SUCCESSORS WOULD BE AT BOTH BANKS BOTH BANKS HAVE SUCCEEDED IN GROWING THROUGH ACQUISITIONS BANK OF NEW YORK ACQUIRED IRVING BANCORP IN 1988 IN A HOSTILE TAKEOVER AND IS CONSIDERED AMONG THE MOST EFFICIENT OF BIG BANKS FLEET PURCHASED 49 BANKS IN 1980S BUT IT HAS BEEN LESS ADEPT AT WRINGING EXPENSE REDUCTIONS FROM THE TRANSACTIONS A MERGER OF THE TWO COULD PROPEL OTHER BANKS TO FIND REGIONAL PARTNERS IN WHAT IS ALREADY AN INCREASINGLY ACTIVE ENVIRONMENT FOR BANK MERGERS AND ACQUISITIONS IN THE FIRST QUARTER OF 1994 THE VALUE OF BANK MERGERS AND ACQUISITIONS TOTALED ABOUT 4 BILLION WHILE THE NEARTERM PROSPECTS FOR BIG REGIONAL BANKS ARE BRIGHT MANY CHIEF EXECUTIVES ARE LESS SANGUINE ABOUT WHAT THE LANDSCAPE WILL LOOK LIKE DOWN THE ROAD TAKEOVER EXPERTS SAY WITH BANKS UNDER INTENSE PRESSURE FROM OTHER PROVIDERS OF FINANCIAL SERVICES AS WELL AS EACH OTHER MANY CHIEF EXECUTIVES ARE HOLDING INFORMAL TALKS TO EXPLORE WHICH COMPETITORS MIGHT MAKE THE BEST FIT INVESTMENT BANKERS SAY JUST ASSUME EVERYBODY IS TALKING TO EVERYBODY ONE INVESTMENT BANKER SAID FROM OHIO TO BOSTON THERE ARE ABOUT A DOZEN BANKS WITH ASSETS OF 25 BILLION TO 60 BILLION THAT ARE POSSIBLE CANDIDATES FOR MERGERS THAT WOULD CREATE GIANTS COVERING WIDE SWATHS OF THE COUNTRY IN ADDITION SOUTHEASTERN BANKS WILL SOON BE ALLOWED TO BUY BANKS OUTSIDE THEIR REGION BECAUSE OF A LOOSENING OF STATE LAWS PEOPLE ARE TRYING TO FIGURE WHAT THE LANDSCAPE WILL LOOK LIKE IN FIVE YEARS AND WHAT THE CONSEQUENCES ARE SAID RICHARD THORNBURGH MANAGING DIRECTOR IN CHARGE OF THE BANK AND THRIFT PRACTICE AT CS FIRST BOSTON CORP WHO ISN'T INVOLVED IN THE BANK OF NEW YORKFLEET TALKS A BYPRODUCT IS ALLIANCES OR COMBINATIONS BUT THERE ARE AS MANY OBSTACLES AS THERE ARE REASONS TO MERGE FEW EXECUTIVES WILLINGLY STEP DOWN AND BOTH MESSRS MURRAY AND BACOT ARE CONSIDERED STRONGWILLED LEADERS MOREOVER BANKS' DIFFERENT CULTURES CAN CLASH AND A MERGER OF EQUALS IN WHICH NO SINGLE MANAGEMENT CONTROLS THE SURVIVING ENTITY IS VIEWED AS MORE DIFFICULT TO ACHIEVE THAN ONE IN WHICH ONE MANAGEMENT GROUP CLEARLY TAKES THE REINS CEOS HAVE A VARIETY OF CONVERSATIONS SAYS MR THORNBURGH BUT IF PEOPLE DON'T HAVE A SHARED VISION OF STRATEGY OR ORGANIZATION STRUCTURE A TRANSACTION IS NOT GOING TO HAPPEN A PERIOD OF EXPLORATION DOESN'T MEAN THERE'S GOING TO BE A COMBINATION 9404110155 940411 FDA BOOSTS WARNING ON ZENECA PRODUCT OF CANCER SIDE EFFECT WASHINGTON THE FOOD AND DRUG ADMINISTRATION ISSUED A STRONGER WARNING TO WOMEN AND DOCTORS THAT TAMOXIFEN A DRUG USED IN TREATMENT OF BREAST CANCER POSES AN INCREASED RISK OF CANCER OF THE UTERUS DESPITE THE INCREASED RISK HOWEVER RECENT STUDY RESULTS REAFFIRM THAT TAMOXIFEN CAN DELAY OR PREVENT RELAPSE IN PATIENTS WHO HAVE UNDERGONE SURGERY FOR BREAST CANCER THEREFORE THE FDA SAID TAMOXIFEN CONTINUES TO BE INDICATED FOR THE TREATMENT OF BREAST CANCER THE UPDATED WARNING IS BASED ON THE DRUG'S PACKAGE INSERT THAT HAS BEEN REVISED TO REFLECT THE MOST RECENT DATA FROM LARGE TRIALS THE MANUFACTURER OF TAMOXIFEN ZENECA PHARMACEUTICALS IS SENDING THE UPDATED LABELING INFORMATION TO 380000 ONCOLOGISTS AND HEALTHCARE PROFESSIONALS ZENECA PHARMACEUTICALS IS A UNIT OF BRITAIN'S ZENECA GROUP PLC TAMOXIFEN IS A VALUABLE TREATMENT FOR BREAST CANCER BUT IT IS IMPORTANT FOR WOMEN TO RECOGNIZE THAT THERE ARE SIDE EFFECTS INCLUDING AN INCREASED RISK OF CANCER OF THE UTERUS SAID DAVID A KESSLER FDA COMMISSIONER IN A NEWS RELEASE A STUDY IN SWEDEN WHICH HAS NOW FOLLOWED PARTICIPANTS FOR ABOUT NINE YEARS SHOWED THAT BREASTCANCER PATIENTS WHO TAKE TAMOXIFEN HAVE A HIGHER RISK OF UTERINE CANCER THAN HAD BEEN SUGGESTED BY EARLIER RESEARCH IN THE LATEST RESULTS OF THE STUDY 23 OF THE 1372 PATIENTS TAKING TAMOXIFEN DEVELOPED THE DISEASE COMPARED WITH FOUR OF THE 1357 PATIENTS IN THE CONTROL GROUP A CONTINUING TRIAL IN THE NATIONAL SURGICAL ADJUVANT BREAST AND BOWEL PROJECT PRODUCED SIMILAR RESULTS AFTER 68 YEARS OF FOLLOWUP THE FDA SAID THE DATA TOGETHER SHOW THAT WOMEN TAKING TAMOXIFEN FACE A RISK OF UTERINE CANCER TWO TO THREE TIMES HIGHER THAN THE RISK TO WOMEN WITHOUT BREAST CANCER IN THE GENERAL POPULATION TAMOXIFEN IS MARKETED UNDER THE TRADE NAME NOLVADEX 9404110154 940411 CHICAGO CITY COLLEGES SUE THE WESTCAP UNIT OF NATIONAL WESTERN CHICAGO CITY COLLEGES OF CHICAGO FILED SUIT AGAINST NATIONAL WESTERN LIFE INSURANCE CO'S WESTCAP BROKERDEALER UNIT ALLEGING THAT WESTCAP WRONGFULLY SOLD THE COLLEGE SYSTEM 96 MILLION OF HIGHLY RISKY SECURITIES THAT WERE THOROUGHLY UNSUITABLE FOR ITS INVESTMENT PORTFOLIO THE SOCALLED COLLATERALIZED MORTGAGE OBLIGATIONS OR CMOS ARE ILLIQUID AND EXTREMELY SENSITIVE TO INTEREST RATE TRENDS AND HAVE DECLINED SHARPLY IN VALUE SINCE INTEREST RATES BEGAN RISING THE SUIT FILED IN FEDERAL COURT HERE SAYS WESTCAP SECURITIES VIOLATED FEDERAL SECURITIES LAW BY FAILING TO DISCLOSE THE RISK ASSOCIATED WITH THE PRINCIPALONLY SECURITIES NATIONAL WESTERN LIFE BASED IN AUSTIN TEXAS HAS SAID THAT WESTCAP HAS ADEQUATE DOCUMENTATION TO VALIDATE THE SECURITIES PURCHASES BY CITY COLLEGES THE COLLEGE SYSTEM'S TREASURER PHILLIP R LUHMANN LAST AUTUMN INVESTED ESSENTIALLY ALL OF THE SYSTEM'S PORTFOLIO IN CMOS THE CITY COLLEGES SUIT SAYS HE HAD NO AUTHORITY TO PURCHASE THE RISKY LONGTERM SECURITIES WHILE THE SUIT DOESN'T MENTION IT THE COLLEGE SYSTEM DISCLOSED THAT IT HAD DISMISSED MR LUHMANN IN FEBRUARY FOR BREACHING ITS POLICIES THE SUIT INDICATES THAT MR LUHMANN IN LATE MARCH 1993 BEGAN BUYING SMALL AMOUNTS OF THE PRINCIPALONLY SECURITIES FROM WESTCAP AND STEPPED UP PURCHASES IN THE FALL THE COLLEGE SYSTEM HAD NO KNOWLEDGE OF HIS EARLY DEALS THE SUIT SAYS THE SUIT CONTENDS MR LUHMANN WAS LULLED INTO A FALSE SENSE OF SECURITY ABOUT THE SAFETY OF THE ISSUES BY HIS EARLY INVESTMENTS AND IN SEPTEMBER HE BEGAN INVESTING THE FULL 96 MILLION IN NOVEMBER THE SUIT SAYS MR LUHMANN ASKED WESTCAP FOR AN EXTENSION OF THE SETTLEMENT DATES FOR PURCHASES THEN OUTSTANDING WESTCAP REFUSED AND INSTEAD OFFERED TO ENGAGE IN REVERSE REPURCHASE TRANSACTIONS WHICH WERE IN EFFECT FINANCING TRANSACTIONS OR LOANS THE SUIT SAYS IT ASKED WESTCAP TO RESCIND ALL THE TRANSACTIONS WHICH IT ASSERTS WERE FRAUDULENTLY INDUCED AND LEGALLY UNAUTHORIZED THE SUIT ASKS THE COURT TO GRANT AMONG OTHER THINGS A RESCISSION OF THE CONTRACTS AS WELL AS DAMAGES OF AT LEAST 50 MILLION AND UNDETERMINED PUNITIVE DAMAGES 9404110153 940411 CREDIT MARKETS BONDS AWAIT NEW SIGNALS OF INFLATION IN A SHIFT OBSERVERS EXPECT ACCELERATION IN ECONOMIC GROWTH BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NOW THAT THE YIELD ON THE 30YEAR TREASURY BOND HAS JUMPED FROM 642 AT THE START OF THE YEAR TO 725 ON FRIDAY IT'S SAFE TO BUY BONDS RIGHT MAYBE NOT YET THAT'S BECAUSE MANY ECONOMISTS ARE ADJUSTING THEIR FORECASTS TO INCREASE THEIR PREDICTIONS OF ECONOMIC GROWTH FOR THIS YEAR AND A STRONGER ECONOMY COULD FUEL INFLATION WHICH WOULD HURT BOND INVESTORS WHO DEPEND ON A FIXED INCOME JUST LAST WEEK THE INTERNATIONAL MONETARY FUND UPGRADED ITS PROJECTION OF US ECONOMIC GROWTH THIS YEAR TO 38 FROM 26 NONE OF THE 51 ECONOMISTS SURVEYED LAST DECEMBER BY THIS PAPER PREDICTED SUCH A HIGH GROWTH RATE IN FACT MORE THAN HALF HAD PREDICTED 3 OR BELOW IT'S WHAT I CALL COINCIDENT FORECASTING SAYS LEIF H OLSEN WHO HEADS A MONEY MANAGEMENT AND ECONOMIC CONSULTING FIRM BEARING HIS NAME IN NEW CANAAN CONN FOR MUCH OF THE PAST TWO YEARS WALL STREET ECONOMISTS WOULD SIMPLY WAIT FOR THE MOST RECENT NUMBERS AND EXTRAPOLATE THEIR PREDICTIONS FROM THEM MANY INVESTORS BAILED OUT OF JUNKBOND FUNDS IN THE WEEK ENDED WEDNESDAY CAUSING SOME OF THESE FUNDS' BIGGEST OUTFLOWS EVER ACCORDING TO AMG DATA SERVICES OF ARCATA CALIF ABOUT 1 BILLION IN ASSETS WENT OUT THE DOOR MANY ECONOMISTS ARE HESITATING TO RAISE RED FLAGS ABOUT INFLATIONARY PRESSURES IN THE NEXT YEAR PREFERRING INSTEAD TO CALL THE BIG 7 JUMP IN FOURTHQUARTER GDP A ONETIME EVENT WHETHER THAT HOLDS TRUE WON'T BE KNOWN UNTIL MAY 27 WHEN THE GOVERNMENT RELEASES ITS PRELIMINARY ESTIMATES FOR FIRSTQUARTER GDP IN THE MEANTIME THERE ARE PLENTY OF OTHER THINGS TO WORRY ABOUT TOMORROW AND WEDNESDAY FOR EXAMPLE THE GOVERNMENT WILL RELEASE FIGURES ON CONSUMER AND PRODUCER PRICES IN MARCH BOTH IMPORTANT INFLATION BENCHMARKS TOMORROW A REPORT ON RETAIL SALES IN MARCH IS DUE AND ON FRIDAY A REPORT ON CAPACITY UTILIZATION IS TO BE RELEASED WITH THE JITTERS STILL IN THE BOND MARKET AFTER THE RECENT SELLOFF ANY ONE OF THESE REPORTS COULD SEND RATES RISING AGAIN IF INVESTORS SEE THEM CONFIRMING THAT THE ECONOMIC RECOVERY IS IN FACT RATHER ROBUST MR OLSEN FOR ONE ENVISIONS INFLATION RISING TO 35 OR EVEN 4 BY THE SECOND HALF OF THIS YEAR FEWER THAN HALF A DOZEN OF THE ECONOMISTS SURVEYED BY THE WALL STREET JOURNAL AT YEAR'S END HAD SUCH HIGH INFLATION RATES IN THEIR FORECASTS THIS SUDDEN BURST OF GROWTH IS UNSETTLING BECAUSE IT WASN'T IN THE FORECAST MR OLSEN SAYS THE FED'S EFFORTS TO SPARK ECONOMIC GROWTH BY REDUCING SHORTTERM INTEREST RATES TO THEIR LOWEST LEVEL IN DECADES MAY HAVE GONE TOO FAR CAUSING UNEXPECTEDLY RAPID ECONOMIC GROWTH IT'S INESCAPABLE THAT INFLATION WILL RISE MR OLSEN SAYS THE QUESTION IS BY HOW MUCH MANY ECONOMISTS HAVE ARGUED THAT CONTINUING SLOWDOWNS IN THE ECONOMIES OF OTHER INDUSTRIALIZED NATIONS WILL HELP KEEP INFLATIONARY PRESSURES LOW IN THE US MR OLSEN BEGS TO DIFFER HE SAYS THERE ISN'T AS MUCH CORRELATION AMONG MARKETS AS MANY OF THESE ECONOMISTS BELIEVE JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS INC NEW YORK SAYS THE RISKS ARE RISING THAT WE'LL RUN INTO INFLATIONARY PRESSURES BEFORE THIS YEAR IS OVER BUT TO ASSUME THAT IS INEVITABLE WOULD BE JUMPING THE GUN THE RISKS OF A CYCLICAL BEAR MARKET IN BONDS HAVE CERTAINLY INCREASED GIVEN THE LIKELIHOOD THAT THE ECONOMY HAS BEEN GROWING MORE RAPIDLY THAN ANTICIPATED HE SAYS BUT TO SAY THAT THAT CONCLUSION IS ALREADY INEVITABLE REQUIRES SOME PESSIMISTIC ASSUMPTIONS YOU WOULD HAVE TO ASSUME THE FEDERAL RESERVE WON'T REMAIN VIGILANT IN FIGHTING INFLATION THE FED HAS RAISED SHORTTERM INTEREST RATES TWICE SINCE FEBRUARY WITH LITTLE IN THE WAY OF INFLATION NEWS YOU WOULD HAVE TO THINK THAT EXCESS CAPACITY HAS DIMINISHED TO SUCH A DEGREE THAT INFLATIONARY PRESSURES ARE INEVITABLE AND YOU WOULD HAVE TO THINK THAT CREDIT DEMAND WILL ACCELERATE TO SUCH AN EXTENT THAT REAL INTEREST RATES WILL RISE SHARPLY TO REACH THAT BEARISH CONCLUSION REMAINS PREMATURE HE SAYS ONE OF THE BATTLE CRIES WALL STREET CLIENTS MAY RECALL FROM LATE LAST YEAR WAS FIVE AND FIVE IN '95 TRANSLATED THAT MEANS A 5 YIELD ON THE 30YEAR TREASURY BOND AND A DOW JONES INDUSTRIAL AVERAGE OF 5000 BY 1995 HOW FAR AWAY THAT ALL SEEMS NOW WHEN THE FED FIRST MOVED TO CUT INTEREST RATES IN EARLY FEBRUARY MR LIPSKY SAID THAT LONGTERM RATES STILL COULD GO BELOW 6 THIS YEAR MR LIPSKY REMAINS OPTIMISTIC ABOUT RATES DROPPING AGAIN BUT HE THINKS THEY WILL RISE FIRST PERHAPS TO 75 OVER THE NEXT FEW WEEKS UNTIL THE FED PUSHES UP SHORTTERM INTEREST RATES ENOUGH TO CALM FEARS OF INFLATION AN OFTENBLAMED ELEMENT IN THE BOND MARKET SELLOFF IS THE LEVERAGE USED BY INVESTORS AS RATES WERE DROPPING THE MOST COMMON LEVERAGE PLOY WAS TO BORROW MONEY AT LOW SHORTTERM INTEREST RATES TO BUY HIGHERYIELDING LONGTERM SECURITIES THIS STRATEGY WORKED BEAUTIFULLY AS LONG AS SHORTTERM RATES REMAINED LOW AND LONGTERM RATES DROPPED THUS INCREASING THE VALUE OF THE LONGTERM SECURITIES BUT WHEN THE FED BEGAN TO RAISE SHORTTERM INTEREST RATES AND THE BOND MARKETS REACTED NEGATIVELY BY KNOCKING DOWN THE VALUE OF LONGTERM SECURITIES THIS STRATEGY BACKFIRED A NUMBER OF HEDGE FUNDS ARE CONTINUING TO GO DOWN IN FLAMES BECAUSE OF SELFDESTRUCTING LEVERAGED POSITIONS SOME OBSERVERS THINK LEVERAGE WILL REMAIN A MAJOR FACTOR IN THE BOND MARKET FOR SOME TIME IN THE LATEST EDITION OF GRANT'S INTEREST RATE OBSERVER NEW YORK EDITOR JAMES GRANT REFLECTED ON THIS TOPIC IS THE COAST CLEAR OR HAS THE USE OF SPECULATIVE LEVERAGE MERELY BEEN SHIFTED NOT REDUCED GRANT'S DOESN'T DIRECTLY ANSWER THAT QUESTION BUT DOES POINT OUT THAT THE SCALE OF LENDING AND BORROWING TO SPECULATE IN GOVERNMENT DEBT WAS TREMENDOUS ACCORDING TO DATA COMPILED BY GRANT'S FROM THE FEDERAL RESERVE BANK OF NEW YORK NET LENDING OF TREASURYS BY US GOVERNMENTSECURITIES DEALERS JUMPED FROM ABOUT 100 BILLION AT THE START OF 1992 TO NEARLY 200 BILLION BY THE END OF LAST YEAR THESE ARE FOURWEEK MOVING AVERAGES OF WEEKLY DATA BY MARCH 2 THOSE LOANS HAD DROPPED TO 1808 BILLION ACCORDING TO GRANT'S IN THE LATEST COMPLETE MONTH FOR WHICH DATA ARE AVAILABLE FEBRUARY ALL DOMESTICALLY CHARTERED COMMERCIAL BANKS SHOWED SECURITIES LOANS IN THE SUM OF 80 BILLION UP 27 FROM THE PRIOR FEBRUARY GRANT'S SAYS TO PUT THAT GROWTH IN PERSPECTIVE OVERALL LENDING ROSE BY ONLY 4 FOREIGN BANKS MEANWHILE LENT 27 BILLION AGAINST SECURITIES COLLATERAL IN FEBRUARY UP 38 FROM THE YEAREARLIER MONTH AFTER THREE DAYS OF GAINS THE AIR WAS LET OUT OF THE TREASURY MARKET'S BALLOON FRIDAY AS PRICES FELL ACROSS THE BOARD THE BENCHMARK 30YEAR TREASURY BOND SLID MORE THAN 1/2 POINT TO 87 24/32 TO YIELD 725 UP FROM 720 ON THURSDAY THE MARKET HAD A WEAK TONE THROUGHOUT THE DAY BUT HELD RELATIVELY STEADY TRADERS SAID SEVERAL BIG SELLERS ENTERED THE MARKET AT MIDAFTERNOON DRIVING PRICES LOWER PRICES RECOVERED BRIEFLY THEN FALTERED AGAIN TO END NEAR THEIR LOWS THE 10YEAR TREASURY NOTE DROPPED 3/8 POINT TO 92 18/32 FOR A YIELD OF 691 COMPARED WITH 685 ON THURSDAY DEALERS SAID INVESTORS WANTED TO LIGHTEN UP POSITIONS AHEAD OF THE WEEKEND ALTHOUGH THE MARKET HAS BEEN ABLE TO STABILIZE AFTER WEEKS OF DECLINES TRADERS AND INVESTORS REMAIN NERVOUS THIS MARKET HAS NO LASTING RESILIENCE SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS THE SMALLEST THING CAN SEND PEOPLE INTO A SELLING MODE THE US GOVERNMENT WILL RELEASE ESTIMATES OF FIRSTQUARTER GROSS DOMESTIC PRODUCT APRIL 28 NOT MAY 27 AS WAS REPORTED IN YESTERDAY'S CREDIT MARKETS COLUMN THE PRELIMINARY REVISION OF THE FIRSTQUARTER GDP WILL BE RELEASED MAY 27 9404110152 940411 WHO'S NEWS COMSHARE INC COMSHARE INC ANN ARBOR MICH T WALLACE WRATHALL 56 YEARS OLD FORMERLY CHIEF FINANCIAL OFFICER OF THIS SOFTWARE PRODUCER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS RICHARD L CRANDALL 50 WHO BECOMES CHAIRMAN A POST THAT HAD BEEN VACANT 9404110151 940411 WHO'S NEWS CIRCUIT CITY STORES INC CIRCUIT CITY STORES INC RICHMOND VA W STEPHEN CANNON WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT AND GENERAL COUNSEL AT THIS CONSUMER ELECTRONICS AND APPLIANCE RETAILER MR CANNON 42 YEARS OLD WAS A PARTNER AT THE LAW FIRM WUNDER DIEFENDERFER CANNON & THELEN IN WASHINGTON DC 9404110150 940411 WHO'S NEWS REVCO DS INC REVCO DS INC TWINSBURG OHIO SHELI Z ROSENBERG AND JOHN V GUTTAG WERE NAMED DIRECTORS OF THIS DRUG STORE CHAIN INCREASING THE BOARD'S SIZE TO 13 MS ROSENBERG 52 YEARS OLD IS A PARTNER IN THE CHICAGO LAW FIRM ROSENBERG & LIEBENTRITT MR GUTTAG 45 IS A PROFESSOR OF COMPUTER SCIENCE AND ENGINEERING AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY 9404110149 940411 WHO'S NEWS SELFIX INC SELFIX INC CHICAGO JAMES R TENNANT 40 YEARS OLD FORMERLY PRESIDENT OF FCB DIRECT THE DIRECTMARKETING OPERATIONS OF FOOTE CONE & BELDING COMMUNICATIONS INC WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE HOUSEWARE AND HARDWARE CONCERN SUCCEEDING NORMA RAGIR WHO DIED IN FEBRUARY 9404110148 940411 WHO'S NEWS NYNEX CORP NYNEX CORP WHITE PLAINS NY JEFFREY S RUBIN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WILL LEAVE THE COMPANY LATER THIS YEAR THE REGIONAL PHONE COMPANY SAID MR RUBIN 50 YEARS OLD PLANS TO PURSUE OTHER BUSINESS INTERESTS MR RUBIN JOINED NYNEX IN AUGUST 1990 AS VICE PRESIDENTFINANCE FROM COMBUSTION ENGINEERING INC WHERE HE HAD BEEN VICE PRESIDENTFINANCE AND CHIEF FINANCIAL OFFICER FOR THE STAMFORD CONN COMPANY 9404110147 940411 INTERNATIONAL STRIFETORN NATAL VILLAGE SHOWS OBSTACLES TO ELECTIONS STABILITY BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL BHAMBAYI SOUTH AFRICA VUMANI SUKUDE APOLOGIZES FOR NOT GETTING UP TO GREET A VISITOR TO HER SHACK BUT THE GUNSHOT WOUND IN HER THIGH PREVENTS HER FROM RISING FROM HER MAT I WAS WITH A GROUP OF WOMEN SINGING AND PRAYING ON EASTER SUNDAY WHEN WE HEARD GUNSHOTS FROM THE OTHER SIDE THE SIXTYISH MRS SUKUDE EXPLAINS ONE OF MY NEIGHBORS DIED WHILE I WAS RUNNING AWAY I FELT A BULLET ENTER FROM BEHIND I DON'T KNOW WHY THEY DID IT ON THE OTHER SIDE OF BHAMBAYI A WRETCHED SQUATTER SETTLEMENT 12 MILES OUTSIDE DURBAN 43YEAROLD VELAPHI MANTENGU LIES ON A MAT OUTSIDE HIS HOUSE AND TELLS A SIMILAR TALE I WAS CROSSING THE STREET AND I GOT SHOT IN THE STOMACH HE SAYS LIFTING UP THE FLOWERED WOMAN'S BATHROBE HE'S WEARING TO SHOW THE BULLET WOUND IN HIS STOMACH I DON'T EVEN KNOW WHY THEY SHOT MRS SUKUDE LIVES IN THE AFRICAN NATIONAL CONGRESSCONTROLLED SECTION OF BHAMBAYI MR MANTENGU LIVES ON THE SIDE CONTROLLED BY THE INKATHA FREEDOM PARTY BHAMBAYI IS IN THE FRONTLINE OF THE FACTIONAL FIGHTING THAT'S RAGING THROUGHOUT THE NATALKWAZULU REGION TURNING SOUTH AFRICA'S HERALDED NEGOTIATED REVOLUTION INTO A BLOODSTAINED AFFAIR AND CASTING A PALL OVER THE COUNTRY'S HISTORIC APRIL 26 TO 28 ALLRACE ELECTIONS DESPITE A LOCAL STATE OF EMERGENCY DECREED LAST MONTH BY PRESIDENT FW DE KLERK FIGHTING BETWEEN SUPPORTERS OF ANC LEADER NELSON MANDELA AND INKATHA LEADER MANGOSUTHU BUTHELEZI CLAIMS ABOUT 10 LIVES DAILY THE STRIFE IS RAISING SERIOUS DOUBTS OVER HOW FREE AND FAIR ELECTIONS IN NATAL WILL BE AND THE LIKELIHOOD OF FURTHER FIGHTING RAISES QUESTIONS OVER THE STABILITY OF POSTELECTION SOUTH AFRICA THE POSSIBILITY OF MUCH MORE WIDESPREAD CONFLICT SOME EVEN SAY CIVIL WAR IS IN MY OPINION VERY GREAT SAYS GAVIN WOODS EXECUTIVE DIRECTOR OF THE INKATHA INSTITUTE FOR SOUTH AFRICA A RESEARCH OUTFIT CLOSE TO MR BUTHELEZI'S PARTY THAT MIGHT NOT PROVIDE THE SORT OF STORY FOREIGN INVESTORS WOULD LIKE TO HEAR FROM SOUTH AFRICA THE CONFLICT PITS ZULUS AGAINST ZULUS AND CLANS AGAINST CLANS DIVIDING VILLAGES AND FAMILIES LONG THE RULER OF THE SELFGOVERNING ZULU HOMELAND WHICH IS SLATED TO DISAPPEAR AFTER THE ELECTIONS MR BUTHELEZI FEARS HE WILL BE LEFT OUT OF THE NEW SOUTH AFRICA ANGERED BY WHAT HE PERCEIVES TO BE AN ALLIANCE BETWEEN THE ANC AND THE RULING NATIONAL PARTY TO MARGINALIZE HIM MR BUTHELEZI IS URGING HIS FOLLOWERS TO BOYCOTT THE ELECTIONS AND HAS THREATENED A FINAL STRUGGLE TO THE FINISH BETWEEN THE ANC AND THE ZULU NATION HE IS SUPPORTED BY ZULU KING GOODWILL ZWELITHINI WHO HAS SAID HE WILL DECLARE A SOVEREIGN ZULU STATE UNLESS INKATHA'S DEMANDS WHICH INCLUDE POSTPONING THE ELECTIONS LIFTING THE STATE OF EMERGENCY AND AMENDING THE COUNTRY'S INTERIM CONSTITUTION TO CREATE A FEDERAL STATE ARE MET BUT THEIR JOINT STAND IS CONTROVERSIAL EVEN SOME INKATHA SUPPORTERS SAY MR BUTHELEZI WOULD HAVE A BETTER CASE IF HE PARTICIPATED IN THE ELECTIONS TO RAISE OPPOSITION IN PARLIAMENT AND MANY ZULUS WANT TO BE PART OF THE NEW SOUTH AFRICA NOT AN INDEPENDENT KINGDOM ON FRIDAY 12 HOURS OF TALKS IN A GAME RESERVE BETWEEN MESSRS MANDELA BUTHELEZI DE KLERK AND KING ZWELITHINI FAILED TO NARROW DIFFERENCES WE'RE UNABLE TO PLACE BEFORE YOU ANY TANGIBLE RESULT FROM THIS DISCUSSION MR MANDELA THE OVERWHELMING FAVORITE TO BE SOUTH AFRICA'S NEXT PRESIDENT SAID GLUMLY AFTER THE TALKS THE PARTIES ARE NOW LOOKING TO INTERNATIONAL MEDIATION WHICH COULD INVOLVE FORMER SECRETARY OF STATE HENRY KISSINGER AND BRITAIN'S LORD CARRINGTON BHAMBAYI SHOWS JUST HOW HARD A TASK THEY WILL FACE THE SQUATTER SETTLEMENT WHOSE NAME IS DERIVED FROM BOMBAY IS LOCATED ON A FORMER INDIAN FARM WHERE MAHATMA GANDHI ONCE LIVED BUT THE GUTTED PRINTING PRESS HE FOUNDED HERE PROVES THAT HIS MESSAGE OF PEACE ISN'T HEEDED THERE ARE SO MANY FLASHPOINTS OF VIOLENCE IN NATAL BUT OVER TIME IN TERMS OF CONSISTENTLY HAVING A PROBLEM BHAMBAYI IS CERTAINLY ONE OF THE WORST SAYS PHILIP HOURQUEBIE A LOCAL BUSINESSMAN WHO HAS BEEN INVOLVED IN FRUITLESS PEACE EFFORTS BY ONE COUNT OVER 300 PEOPLE HAVE DIED IN THE PAST YEAR PROMPTING THE POLICE TO SET UP A TOLLFREE NUMBER FOR CLUES TO THE SENSELESS KILLINGS OF THE PEOPLE OF BHAMBAYI IN BHAMBAYI AS ELSEWHERE THE CALLS FOR ELECTION BOYCOTTS AND CONSTITUTIONAL DISPUTES ARE SUBSUMED BY MUCH MORE MUNDANE ISSUES LIKE LAND TRIBE POVERTY OR JUST CRIMINAL OCCURRENCES THAT ARE EXPLOITED BY THE ANC AND INKATHA BHAMBAYI USED TO BE SOLIDLY PROANC BUT INTERNAL DISSENT LED A FACTION TO JOIN INKATHA THE ANC SIDE IS KNOWN AS THE REDS AND THE INKATHA SIDE AS THE GREENS IT'S EASY TO SEE WHERE THE DIVISION LIES IT'S WHERE THE HOUSES HAVE BEEN REDUCED TO RUBBLE AND TWISTED SHEETS OF CORRUGATED METAL NOBODY DARES CROSS THAT LINE I HAVE COUSINS ON THE OTHER SIDE BUT I HAVEN'T SEEN THEM SINCE OCTOBER SAYS LENFORD MDIBI WHO LIVES ON THE ANC SIDE MISTRUST AND FEAR ARE PREVALENT ON BOTH SIDES ALSINAH MGANDELA A 54YEAROLD RESIDENT OF THE ANC SIDE SAYS SHE OFTEN DOESN'T SLEEP IN HER HOUSE FOR FEAR OF ATTACKS INSTEAD SHE GOES WITH HER TWO CHILDREN TO SLEEP IN THE BACK OF A MINIBUS TAXI AT A NEARBY GAS STATION BECAUSE IT'S CLOSE TO THE POLICE STATION HER TWO CHILDREN HAVEN'T GONE TO SCHOOL IN A YEAR BECAUSE SHE'S AFRAID THEY'LL BE SHOT OVER ON THE INKATHA SIDE JAMES MTETHUA SITS BY HIS LITTLE GROCERY STORE RIGHT NEXT TO A ROW OF HOUSES THAT HAS BEEN BURNT TO THE GROUND AND DESCRIBES THE LITANY OF SHOOTINGS HE'S SEEN SOME ARE SHOT IN THEIR HOUSES SOME ARE SHOT AS THEY WALK SOME ARE SHOT RUNNING OUT OF THEIR HOMES AFTER THEY'RE SET ON FIRE HE SAYS PEOPLE GET SHOT WHEN THEY GO TO WORK SO THEY LOSE THEIR JOBS BECAUSE THEY'RE AFRAID TO GO OUT HOW CAN YOU VOTE WITH VIOLENCE LIKE THIS HE ASKS YOU GO VOTE AND COME BACK TO FIND YOUR HOUSE HAS BEEN BURNT I MUST LOOK AFTER MY PREMISES WE LIVE A WILD LIFE A REALLY WILD LIFE AND NOBODY HELPS US WHAT'S IT ALL ABOUT I DON'T REALLY KNOW HE SAYS ANC AGAINST INKATHA THAT'S ALL I CAN SAY BOTH SIDES BLAME THE OTHER ONE FOR THE VIOLENCE AND SAY THEY'RE PREPARED TO MAKE PEACE BUT FEEL THEY'RE CAUGHT UP IN A WIDER DRAMA WE'RE TIRED OF THIS WAR SAYS MR MTETHUA SO WOULD HE BE PREPARED TO PLAY HIS PART FOR PEACE MR MTETHUA PAUSES THEY STARTED FIGHTING BURNING HOUSES KILLING HE SAYS WE CAN'T LET THEM DO THAT NOW WE WANT TO KILL THEM 9404110146 940411 SWISS JOBLESS RATE DECLINES BERN SWITZERLAND'S UNEMPLOYMENT RATE DECLINED TO 5 IN MARCH FROM 52 IN FEBRUARY THE GOVERNMENT SAID IN MARCH 1993 THE RATE WAS 49 LAST MONTH A TOTAL OF 182136 PEOPLE WERE REGISTERED AS WITHOUT WORK DOWN FROM 187382 IN FEBRUARY BUT STILL UP FROM 151000 IN MARCH 1993 THE GOVERNMENT LISTED 5883 JOBS AS UNFILLED LAST MONTH UP FROM 5263 IN FEBRUARY 9404110145 940411 CLOSED END FUNDS FRIDAY APRIL 8 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 GENERAL EQUITY FUNDS HACTUAL DIV DATE WAS 3/31 9404110144 940411 SMUCKERS TO BUY JUICE BUSINESS ORRVILLE OHIO JM SMUCKER CO SAID IT SIGNED A LETTER OF INTENT TO BUY THE AFTER THE FALL FRUITJUICE AND JUICEBEVERAGE BUSINESS FROM AFTER THE FALL PRODUCTS INC BRATTLEBORO VT TERMS WEREN'T DISCLOSED SMUCKER IS A MAKER OF JAMS JELLIES SYRUPS ICECREAM TOPPINGS AND OTHER FRUITRELATED FOOD PRODUCTS 9404110143 940411 APPLE SOUTH BUYS PARTNERSHIP MADISON GA APPLE SOUTH INC SAID IT AGREED TO ACQUIRE APPLE TENNFLO LP A CLOSELY OWNED PARTNERSHIP BASED IN KNOXVILLE TENN AND CONTROL OF ITS 10 RESTAURANTS IN A TRANSACTION VALUED AT 17 MILLION APPLE SOUTH OPERATES 87 APPLEBEE'S NEIGHBORHOOD GRILL RESTAURANTS AND SEVERAL OTHER RESTAURANTS 9404110142 940411 SUPPORT GROWS FOR IRS DISCLOSURE OF MUNI ACTIONS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON SUPPORT IS BUILDING TO ALLOW THE INTERNAL REVENUE SERVICE TO DISCLOSE SPECIFIC INFORMATION ABOUT ITS MUNICIPALBOND ENFORCEMENT ACTIONS IRS COMMISSIONER MARGARET RICHARDSON SAID IN A RECENT INTERVIEW THAT SHE IS SYMPATHETIC WITH THE IDEA OF DISCLOSING CERTAIN MUNI ENFORCEMENT INFORMATION SHE MADE IT CLEAR THOUGH THAT ANY HEIGHTENED DISCLOSURE COULDN'T BE DONE BY ADMINISTRATIVE FIAT BUT INSTEAD WOULD REQUIRE CONGRESSIONAL ACTION THE NATIONAL ASSOCIATION OF BOND LAWYERS IS STRONGLY BACKING ENFORCEMENT DISCLOSURE THE GENERAL ACCOUNTING OFFICE MAINTAINS THAT IDENTIFYING BONDMARKET PARTICIPANTS WHO HAVE BEEN SUBJECT TO IRS ENFORCEMENT ACTIONS WOULD PROMOTE COMPLIANCE BY BRINGING MARKET FORCES TO BEAR AGAINST ABUSERS THE IRS HASN'T YET FASHIONED A SPECIFIC PROPOSAL BUT IS WEIGHING LEGISLATIVE OPTIONS TO ENHANCE MUNI COMPLIANCE ACCORDING TO A NEW GAO REPORT THE GAO A CONGRESSIONAL WATCHDOG AGENCY HAS SUGGESTED AS A LEADING OPTION DISCLOSING THE NAMES OF THE BOND UNDERWRITERS LAWYERS AND OTHERS RESPONSIBLE FOR NONCOMPLIANCE UNDER CURRENT LAW THE IRS IS BARRED FROM DISCLOSING SPECIFIC INFORMATION REGARDING ITS MUNI ENFORCEMENT ACTIONS IT IS LIMITED MERELY TO RECITING OVERALL ENFORCEMENTRELATED FIGURES PARTICULARS MAY BE MADE PUBLIC ONLY IF THE PARTIES SUBJECT TO THE ENFORCEMENT ACTION FORMALLY WAIVE THEIR PROTECTIONS AGAINST PUBLIC DISCLOSURE IN RESPONSE TO A PRESS INQUIRY THE IRS DISCLOSED THAT IT HAS ENTERED INTO 92 SETTLEMENTS TO RESOLVE MUNI DISPUTES OVER THE PAST DOZEN YEARS AND THAT IT HAS RECOUPED MORE THAN 103 MILLION FROM MARKET PARTICIPANTS IN THESE PACTS BUT THE AGENCY CAN'T SAY ANYTHING MORE ABOUT SUCH SOCALLED CLOSING AGREEMENTS THE IRS'S CONFIDENTIALITY RULES ARE DESIGNED TO PROTECT TAXPAYERS THE GAO AND OTHERS ARGUE THAT STATE AND LOCAL BOND ISSUERS AND THEIR CONTRACTORS SUCH AS BOND UNDERWRITERS AND LAWYERS SHOULDN'T BE SHIELDED FROM DISCLOSURE BECAUSE GOVERNMENTAL UNITS ARE SUPPOSED TO BE ACCOUNTABLE TO THE CITIZENS THEY REPRESENT RICHARD CHIRLS OF ORRICK HERRINGTON & SUTCLIFFE A FORMER PRESIDENT OF THE BOND LAWYERS' GROUP SAID MOST PEOPLE AGREE THAT ENFORCEMENT ACTIVITIES RELATING DIRECTLY TO PRIVATE BONDHOLDERS SHOULDN'T BE DISCLOSED BUT HE SAID DISCLOSING OTHER PARTICULARS INCLUDING THOSE RELATING TO BOND PROFESSIONALS WOULD HELP THE IRS ENFORCE THE LAW AND WOULD BENEFIT THE MUNI MARKET SIGNIFICANTLY OVER TIME THE PRESIDENT OF THE NABL NEIL ARKUSS OF PALMER & DODGE SAID BOND LAWYERS ARE VERY PRODISCLOSURE AND WOULD SUPPORT ENTHUSIASTICALLY A MOVE TOWARD DISCLOSURE OF ENFORCEMENT SPECIFICS 9404110141 940411 COMPUTER FIRMS SEEN REPORTING A GOOD QUARTER MODEST SIGNS OF RECOVERY DURING THE FIRST PERIOD ARE AWAITED BY ANALYSTS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S LARGEST COMPUTER COMPANIES ARE EXPECTED TO REPORT MODEST SIGNS OF RECOVERY FOR THE FIRST QUARTER WHILE THE MAJOR PERSONALCOMPUTER MAKERS WILL POST CONTINUED STRONG SALES GROWTH WE'RE NOT LIKELY TO HAVE THE DOWNDRAFT WE'VE SEEN SO OFTEN IN PAST QUARTERS SAYS BARRY BOSAK AN ANALYST WITH SMITH BARNEY SHEARSON TECHNOLOGY INVESTORS WHO USUALLY FACE THE END OF THE QUARTER IN COMBAT HELMETS MAY EVEN SEE AN UPSIDE SURPRISE HE SAYS CRAY RESEARCH INC COMPAQ COMPUTER CORP AND EVEN INTERNATIONAL BUSINESS MACHINES CORP COULD OUTPACE EXPECTATIONS SOME ANALYSTS SAY IBM IS SEEN REPORTING A MODEST PROFIT WHILE PC MAKERS COMPAQ AND APPLE COMPUTER INC SHOULD POST STRONG SALES GROWTH BUT APPLE'S FIRSTQUARTER PROFIT IS EXPECTED TO BE OFF SHARPLY AS IT BEGINS A TRANSITION TO A NEW PRODUCT LINE BASED ON THE POWERPC CHIP DESIGN HEWLETTPACKARD CO NOW THE NATION'S SECONDLARGEST COMPUTER MAKER IS FORECAST TO DELIVER ANOTHER BLOCKBUSTER THANKS TO ITS BOOMING COMPUTERPRINTER BUSINESS SUN MICROSYSTEMS INC MEANWHILE HAS ALREADY WARNED INVESTORS TO EXPECT A SLOWDOWN IN REVENUE GROWTH AND DIGITAL EQUIPMENT CORP IS SEEN REPORTING ANOTHER FIRSTQUARTER LOSS DAN MANDRESH OF MERRILL LYNCH & CO EXPECTS IBM TO REPORT FIRSTQUARTER NET INCOME OF 66 MILLION OR 11 CENTS A SHARE ON A 2 REVENUE DECLINE TO 128 BILLION IN THE YEAREARLIER QUARTER IBM HAD A LOSS OF 285 MILLION OR 50 CENTS A SHARE ON REVENUE OF 131 BILLION MR MANDRESH SAYS SALES OF BIG MAINFRAME COMPUTERS STILL IBM'S MOST IMPORTANT BUSINESS CONTINUE TO DECLINE HE SEES IBM'S MAINFRAME SALES EXCLUDING ASSOCIATED SOFTWARE AND RELATED SYSTEMS FALLING SHARPLY TO ABOUT 45 BILLION FOR ALL OF 1994 FROM 62 BILLION LAST YEAR JAY STEVENS OF DEAN WITTER NOTES THAT DESPITE THE DECLINE IBM IS RUNNING A MAINFRAME BACKLOG BECAUSE OF HUGE CUTS IN PRODUCTION CAPACITY MR STEVENS'S FIRSTQUARTER ESTIMATE IS 10 CENTS A SHARE BUT IT COULD EASILY COME IN BETTER THAN THAT COMPAQ COMPUTER HAD A TERRIFIC QUARTER BY ALL ESTIMATES THOUGH SOME ANALYSTS ATTRIBUTED MUCH OF THE RISE TO SALESCHANNEL EXPANSION THAT ISN'T LIKELY TO BE SUSTAINABLE AT THIS PACE OVER THE LONG TERM RIGHT NOW WHAT'S HAPPENING WITH PCS AND COMPAQ IN PARTICULAR IS A LOT MORE THE DYNAMICS OF A RETAIL BUSINESS THAN A TECHNOLOGY COMPANY SAYS THOMAS ROONEY OF DONALDSON LUFKIN & JENRETTE HE NOTES THAT OUTLETS FOR COMPAQ'S PRODUCTS SOARED 78 LAST YEAR AS NEW ESTABLISHMENTS SUCH AS WALMART STORES STARTED CARRYING PCS MR ROONEY EXPECTS COMPAQ TO POST A PROFIT OF 130 MILLION OR 150 A SHARE ON 2 BILLION IN REVENUE A 24 INCREASE FROM A YEAR BEFORE BUT HE NOW SAYS IT LOOKS AS IF THEY MAY COME IN EVEN HIGHER THAN THAT ANDREW NEFF OF BEAR STEARNS WHO EXPECTS NET OF 154 A SHARE COMPARED WITH THE YEARBEFORE 123 A SHARE SAYS MARCH WENT OUT LIKE A LION IN THE PC BUSINESS WITH DEMAND ACCELERATING IN THE QUARTER'S FINAL WEEKS DIGITAL EQUIPMENT COULD ALSO SERVE UP A SURPRISE FOR ITS THIRD QUARTER ENDED MARCH 30 LOSS ESTIMATES CENTER ON 35 CENTS A SHARE BUT THEY RANGE FROM 10 CENTS A SHARE TO AS MUCH AS 50 CENTS A SHARE DEAN WITTER'S MR STEVENS STANDS AT A 17CENT LOSS OR 24 MILLION ON A 6 REVENUE DECLINE TO 325 BILLION THE YEAREARLIER LOSS WAS 301 MILLION OR 23 CENTS A SHARE ON REVENUE OF 345 BILLION WE THINK BUSINESS MAY HAVE BEEN A LITTLE BETTER THAN PEOPLE REALIZE WITH IMPROVING SALES OF ALPHABASED SYSTEMS DIGITAL'S NEW COMPUTER DESIGN AND LESS CURRENCY PRESSURE OVERSEAS MR STEVENS SAYS SHAO WANG OF SMITH BARNEY STANDS AT A 35CENT LOSS AND A BROADER REVENUE DECLINE OF 8 A DIGITAL SPOKESMAN WOULDN'T DISCUSS THE QUARTER HE DID NOTE HOWEVER THAT THE COMPANY IS OPERATING VERY CLOSE TO BREAKEVEN AND A LITTLE REVENUE ONE WAY OR THE OTHER CAN MAKE A DIFFERENCE INDEED MANAGERS AT DIGITAL SAY SOME SEGMENTS WERE UNEXPECTEDLY STRONG IN THE PERIOD ESPECIALLY PERSONAL COMPUTERS WHICH ARE BEING SHIPPED AT A RATE OF 250000 UNITS A QUARTER BUT THE PROFITS ON SUCH LOWEND SYSTEMS ARE THIN WHILE DIGITAL'S LARGER VAX SYSTEM SALES REMAIN IN DECLINE MAKING IT DIFFICULT TO HANDICAP FINAL QUARTERLY RESULTS HEWLETTPACKARD IN ITS SECOND FISCAL QUARTER ENDING APRIL 30 WILL SHOW SHARPLY HIGHER NET INCOME OF 415 MILLION OR 160 A SHARE ON REVENUE OF 61 BILLION SAYS GOLDMAN SACHS ANALYST BARRY WILLMAN MR WANG OF SMITH BARNEY IS MORE CAUTIOUS AT 150 A SHARE IN THE YEARAGO QUARTER THE MAKER OF COMPUTERS MEDICAL INSTRUMENTS AND PRINTERS POSTED NET OF 347 MILLION OR 138 A SHARE ON REVENUE OF 51 BILLION MR WILLMAN SAYS THAT HEWLETT'S COLOR INKJET PRINTER BUSINESS IS REALLY EXPLODING AND THAT THE TOTAL PRINTER BUSINESS INCLUDING SUPPLIES WILL SOAR 33 TO 81 BILLION THIS FISCAL YEAR HE EXPECTS A COLOR LASER PRINTER TO JOIN THE HEWLETT PRINTER LINE BY OCTOBER ONE CONCERN AMONG ANALYSTS HOWEVER IS HEWLETT'S HIGH LEVELS OF INVENTORY THEY'VE BEEN UP FOR SEVEN STRAIGHT QUARTERS AND LAST QUARTER THEY WERE UP 10 DESPITE MANAGEMENT'S EFFORTS TO REDUCE THEM MR WILLMAN SAYS OVER ALL THEY'VE RISEN 40 FROM LAST YEAR WHILE REVENUE ROSE 24 MR WILLMAN NOTES THIS BUILDUP IS GOING TO BE A CHALLENGE AS THEY MOVE THROUGH THE YEAR HE SAYS APPLE IN THE MIDST OF A MAJOR PRODUCT TRANSITION IS EXPECTED TO REPORT SHARPLY LOWER NET OF 12 MILLION OR 10 CENTS A SHARE ESTIMATES MR ROONEY OF DLJ ON A 12 REVENUE RISE TO 22 BILLION MR BOSAK OF SMITH BARNEY IS LESS PESSIMISTIC WITH AN ESTIMATE OF 28 MILLION OR 24 CENTS A SHARE IN THE YEARBEFORE QUARTER NET WAS 111 MILLION OR 92 CENTS A SHARE ON REVENUE OF 197 BILLION THESE NEXT TWO QUARTERS ARE GOING TO BE VERY DIFFICULT FOR APPLE MR ROONEY SAYS BUSINESS CUSTOMERS AREN'T BUYING 9404110140 940411 TECHNOLOGY DECISION FROM FDA ON CALGENE TOMATO EXPECTED IN 90 DAYS WASHINGTON THE FOOD AND DRUG ADMINISTRATION EXPECTS TO RENDER A DECISION WITHIN 90 DAYS ON CALGENE INC'S BID TO MARKET ITS ROTRESISTANT FLAVR SAVR TOMATO FDA'S FOOD SAFETY COMMITTEE ON FRIDAY GENERALLY AGREED WITH THE AGENCY'S STAFF ANALYSIS OF THE GENETICALLY ENGINEERED TOMATO AGENCY SCIENTISTS LAST WEEK CONCLUDED THE TOMATO IS AS SAFE AS ANY OTHER COMMONLY CONSUMED ONES CALGENE'S FLAVR SAVR IS GENETICALLY ALTERED BY A TECHNIQUE KNOWN AS ANTISENSE IN WHICH SCIENTISTS INACTIVATED A GENE RESPONSIBLE FOR MAKING AN ENZYME THAT CAUSES RIPE FRUIT TO ROT THE GOAL IS TO ENABLE GROWERS TO PICK AND SHIP VINERIPENED TOMATOES RATHER THAN THE IMMATURE GREEN VARIETY WHILE PRESERVING A LONG SHELF LIFE FDA'S PANEL OF OUTSIDE EXPERTS WASN'T UNANIMOUS HOWEVER COLUMBIA UNIVERSITY PROFESSOR JOAN DYE GUSSOW URGED THE AGENCY TO RESIST INDUSTRY PRESSURE AND DELAY APPROVAL OF THE TOMATO UNTIL THE FDA DEVELOPS A COMPREHENSIVE POLICY FOR REVIEWING BIOENGINEERED PRODUCE HOWEVER GUSTAAF DE ZOETEN CHAIRMAN OF PLANT PATHOLOGY AT MICHIGAN STATE UNIVERSITY SAID IT IS UNFAIR TO HOLD CALGENE HOSTAGE AFTER FIVE YEARS OF FDA REVIEW IN NASDAQ TRADING FRIDAY CALGENE SHARES CLOSED AT 12375 DOWN 25 CENTS CURRENTLY FDA REQUIRES PREMARKET NOTIFICATION OF GENESPLICED FOODS WHEN A SAFETY ISSUE IS AT STAKE OR WHEN GENETIC MANIPULATION CHANGES THE PRODUCT'S BASIC NUTRITIONAL ELEMENTS 9404110139 940411 FOREIGN EXCHANGE POUND IS SEEN RISING AGAINST THE MARK HOLDING ITS OWN AGAINST THE US DOLLAR BY NICHOLAS ELLIOTT SPECIAL TO THE WALL STREET JOURNAL LONDON THE POUND WILL GAIN AGAINST THE MARK AND WILL LARGELY HOLD ITS GROUND AGAINST THE DOLLAR AT LEAST THROUGH THIS YEAR CURRENCY MARKET PLAYERS SAID A WIDENING DIFFERENTIAL BETWEEN INTEREST RATES IN GERMANY AND BRITAIN WILL PROVIDE KEY SUPPORT TO THE POUND ALTHOUGH RISING US RATES COULD LIMIT THE POUND'S UPSIDE AGAINST THE DOLLAR STERLING'S CERTAINLY GOING TO BE HEADING UPWARD SAID KEITH EDMONDS CHIEF ANALYST AT IBJI RESEARCH HERE BUT SOME UNCERTAINTY ABOUT STERLING'S PERFORMANCE REMAINS ANALYSTS CAUTIONED THEY CITED THE THREAT OF A LEADERSHIP CHALLENGE TO PRIME MINISTER JOHN MAJOR POSSIBLE TAX INCREASES THAT WOULD SLOW BRITAIN'S ECONOMIC GROWTH AND THE IMPACT OF ANY WIDENING OF THE CURRENT ACCOUNT DEFICIT A WIDELY WATCHED MEASURE OF THE COUNTRY'S TRADE PERFORMANCE STILL TRENDS IN BRITISH AND GERMAN INTEREST RATES FOR THE REMAINDER OF 1994 COULD PROVIDE POWERFUL SUPPORT FOR THE POUND IN THAT CURRENCY RELATIONSHIP ANALYSTS ADDED BRITISH AUTHORITIES MAY TRIM ANOTHER 1/4 PERCENTAGE POINT FROM KEY INTEREST RATES BUT RATES WOULD LIKELY RISE FROM THERE SAID MR EDMONDS OF IBJI RESEARCH BRITISH BASE RATES STAND AT 5 1/4 AFTER HAVING BEEN TRIMMED BY 1/4 POINT ON FEB 8 MEANWHILE MR EDMONDS SAID GERMAN AUTHORITIES ARE GOING TO CONTINUE CUTTING INTEREST RATES THROUGH THIS YEAR HE SEES THE POUND REACHING 270 MARKS WITHIN 12 MONTHS COMPARED WITH 252 MARKS AND 14770 LATE FRIDAY AFTERNOON IN LONDON IN LATE TRADING FRIDAY IN NEW YORK THE POUND WAS TRADING AT 14765 UP FROM 14740 LATE THURSDAY THE DOLLAR WAS ALSO QUOTED LATE FRIDAY AT 17125 MARKS DOWN FROM 17165 MARKS LATE THURSDAY AND AT 10515 YEN UP FROM 10490 YEN IN MIDDAY TRADING IN TOKYO MONDAY THE DOLLAR WAS QUOTED AT 10463 YEN AND 17067 MARKS MARK GEDDES TREASURY ECONOMIST AT MIDLAND GLOBAL MARKETS IS LESS BULLISH ABOUT STERLING ARGUING THAT POLITICAL FACTORS WILL KEEP IT FROM TOPPING 258 MARKS HE POINTS TO LOCAL ELECTIONS ON MAY 5 AND EUROPEAN PARLIAMENTARY ELECTIONS ON JUNE 9 A POOR SHOWING BY THE RULING CONSERVATIVES COULD REIGNITE SPECULATION THAT MR MAJOR WILL BE REPLACED MR GEDDES SAID BUT CURRENCY MARKETS ALREADY MAY HAVE LARGELY DISCOUNTED THE GOVERNMENT'S LATEST POLITICAL WOES OTHERS SAID AFTER CRITICISM OF MR MAJOR FROM WITHIN HIS PARTY CAUSED STERLING TO DROP RECENTLY THE BRITISH CURRENCY RECOUPED MUCH OF ITS LOSSES POLITICS I DON'T SEE THAT AS IMPORTANT IN THE LONG TERM ARGUED ADRIAN SCHMIDT INTERNATIONAL ECONOMIST AT CHASE INVESTMENT BANK GIVEN THE LOW POPULARITY OF THE CONSERVATIVES ADDED MR EDMONDS OF IBJI RESEARCH IF THERE'S A CHANGE OF LEADERSHIP CAN IT GET THAT MUCH WORSE AND WHILE THE LARGE TAX INCREASES THAT TOOK EFFECT THIS MONTH COULD AFFECT THE BRITISH CURRENCY IF THERE ARE SIGNS THAT CONSUMER DEMAND IS SLOWING ANALYSTS BELIEVE A SLOWDOWN IN SPENDING ALREADY HAS OCCURRED IN ANTICIPATION OF THAT MEANWHILE ANALYSTS EXPECT STRONGER GROWTH IN THE US TO GIVE THE DOLLAR THE EDGE ON STERLING WITH THE US ECONOMY SEEMINGLY STRONG MANY MARKET PLAYERS EXPECT THAT THE FEDERAL RESERVE WILL TIGHTEN CREDIT CONDITIONS SOON ALTHOUGH THE DOLLAR ALSO FACES POLITICAL UNCERTAINTIES SUCH AS THE WHITEWATER INVESTIGATION THE POLITICAL RISKS SEEM GREATER FOR STERLING MIDLAND'S MR GEDDES BELIEVES MR GEDDES SEES STERLING MOVING DOWN GENTLY AGAINST THE DOLLAR TO 142 IN 12 MONTHS THAT'S NOT MUCH DIFFERENT FROM THE PROJECTION BY CHASE'S MR SCHMIDT WHO SEES THE POUND AT 145 AT THE END OF THE YEAR IN THE LONGER TERM THOUGH BRITAIN'S STRENGTHENING ECONOMY COULD WORK TO THE DISADVANTAGE OF ITS CURRENCY STRONGER DEMAND WOULD PULL IN MORE IMPORTS CAUSING THE CURRENT ACCOUNT GAP TO WIDEN ECONOMISTS AT UBS LTD ARGUE THAT THE DEFICIT IS REALLY ABOUT TWICE THE SIZE OFFICIAL FIGURES SHOW AND BEARISH FORECASTERS SEE THAT AS A KEY REASON WHY THE POUND MAY WEAKEN EVENTUALLY IF YOU CHART THE TRADEWEIGHTED INDEX AND THE SIZE OF THE CURRENT ACCOUNT DEFICIT THEY FOLLOW VERY CLOSELY NOTED MIDLAND'S MR GEDDES HE ADDED THAT ANY PICKUP IN THE ECONOMIC GROWTH IS GOING TO MAKE THAT WORSE CHASE'S MR SCHMIDT IS LESS CONCERNED THE CURRENT ACCOUNT IS A LONGERTERM PROBLEM BUT EVEN IF IT'S TWICE AS HIGH AS OFFICIALLY REPORTED THAT'S NOT REALLY SURPRISING AT THIS STAGE OF THE CYCLE HE SAID THIS YEAR CAPITAL INFLOWS INTO GOVERNMENT BONDS AND INVESTMENT INFLOWS WILL COUNTER THE DEFICIT ON THE CURRENT ACCOUNT MR SCHMIDT ADDED 9404110138 940411 CANADIAN GOLD MINING PROJECT SASKATOON SASKATCHEWAN CAMECO CORP SAID IT WILL PROCEED WITH PRODUCTION AT ITS CONTACT LAKE GOLD PROJECT IN NORTHERN SASKATCHEWAN AT A COST OF 36 MILLION CANADIAN DOLLARS US26 MILLION THE MINE IS EXPECTED TO PRODUCE ABOUT 338000 OUNCES OF GOLD IN THE NEXT SIX YEARS A FURTHER 336000 OUNCES OF UNPROVEN RESERVES LIE NEAR THE PROPERTY THE PROJECT IS TWOTHIRDS OWNED BY CAMECO A SASKATOON URANIUM PROCESSOR AND ONETHIRD BY URANERZ EXPLORATION & MINING LTD A SUBSIDIARY OF GERMAN MINING GROUP URANERZBERGBAU GMBH 9404110137 940411 WAXMAN EXTENDS OFFER BEDFORD HEIGHTS OHIO WAXMAN INDUSTRIES INC SAID IT EXTENDED TO NEXT FRIDAY FROM LAST FRIDAY ITS TENDER OFFER FOR ITS 1375 SENIOR SUBORDINATED NOTES DUE JUNE 1 1999 WAXMAN A SUPPLIER TO THE HOME REPAIR AND REMODELING MARKET SAID IT EXTENDED THE TENDER OFFER BECAUSE OF UNFAVORABLE MARKET CONDITIONS WHICH HAVE DELAYED THE CLOSING OF ITS DEBT REFINANCING AS OF FRIDAY 874 MILLION PRINCIPAL AMOUNT OF THE NOTES HAD BEEN TENDERED WAXMAN SAID 9404110136 940411 POLITICS & POLICY DOGGED BY WHITEWATER CLINTON SEEMS FRUSTRATED BUT MORE DETERMINED TO ACHIEVE HIS POLICY GOALS BY MICHAEL K FRISBY AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE TURMOIL OVER WHITEWATER HAS PRODUCED AN UNEXPECTED FALLOUT AT THE WHITE HOUSE PRESIDENT CLINTON PERHAPS TO SHOW HE ISN'T DISTRACTED IS GENERATING AN INCREASED SENSE OF URGENCY TO PRESS HIS POLICY GOALS HIS TEMPO HAS QUICKENED FORCING ORDER ON A SLIPSHOD WHITE HOUSE OPERATION THE COLLEGE DORMITORY ATMOSPHERE IN WHICH AIDES HUDDLED IN HIS OFFICE AS IF IT WERE A FRAT HOUSE HAS VANISHED REPLACED BY A MORE INTENSE MOOD THE PRESIDENT HOLDS FEWER MEETINGS WITH STAFF AND THE ONES HE CONDUCTS ARE SHORTER IF AIDES TALK POINTLESSLY HE SIGNALS TO WRAP IT UP AND MR CLINTON RENOWNED FOR HIS LATENESS IS NOW FAR MORE CONSCIOUS OF BEING ON TIME THE PRESIDENT'S NEW ATTITUDE AFFECTS WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY MR CLINTON'S TOP AIDE IS MORE OFTEN A FUNNEL BETWEEN THE PRESIDENT AND THE STAFF MUCH MORE IN THE TRADITION OF HIS POSITION SO THAT MR CLINTON DOESN'T NEED TO SEE OTHER AIDES AS MUCH IN TURN MR MCLARTY URGES THE STAFF TO PAY ATTENTION TO THEIR JOBS NOT WHITEWATER HE ACKNOWLEDGES THOUGH THAT THE MEDIA COVERAGE ABOUT THE FIRST COUPLE'S PERSONAL FINANCES AND ABOUT HILLARY RODHAM CLINTON'S INVESTMENTS AND FORMER LAW CLIENTS HAS BEEN DISMAYING TO BOTH MR CLINTON AND HILLARY THE FIRST LADY HAS AVOIDED GETTING INVOLVED IN ISSUES OTHER THAN HEALTH CARE AND WHITE HOUSE AIDES SAY MR CLINTON IS FRUSTRATED MORE OFTEN THAN THEY HAVE SEEN IN THE PAST OFTEN SHOWING HIS QUICK TEMPER IN THE OVAL OFFICE RECENTLY HE EXPLODED IN ANGER OVER MEDIA CRITICISM OF HIS WIFE AND SHOUTED TO STAFFERS IT'S NOT FAIR WHAT THEY'RE DOING TO HILLARY AIDES SAY THE PRESIDENT FREQUENTLY BEGINS HIS MORNINGS PREOCCUPIED AND ROCKING FROM THE LATEST WHITEWATER PUNCHES BUT THEN HE SHAKES IT OFF AS HE GETS INTO HIS DAY HE'S LIKE ANYBODY HE'LL BLOW OFF STEAM SAYS WHITE HOUSE COMMUNICATIONS AIDE JEFF ELLER OVERALL HE HAS A MUCH LONGER AND MORE POSITIVE PERSPECTIVE THAN YOU WOULD IMAGINE LIKE OTHER PRESIDENTS UNDER FIRE MR CLINTON HAS TURNED TO THE WHITE HOUSE ITSELF FOR STRENGTH HE READS UP ON ITS HISTORY AND WHAT HIS PREDECESSORS DID WHEN FACING THEIR OWN TURMOIL WHERE PRESIDENT NIXON IN THE DEPTHS OF WATERGATE SOUGHT COMFORT BY TALKING TO THE PORTRAITS OF FORMER PRESIDENTS MR CLINTON ENJOYS LEADING GUESTS ON TOURS AT A RECENT DINNER WITH ABOUT 12 DEMOCRATIC SENATORS HE RECALLED HOW PRESIDENTS HAVE ALTERNATED BETWEEN HOLDING DINNERS UPSTAIRS OR DOWNSTAIRS IN THE WHITE HOUSE RESIDENCE ACCORDING TO VARIOUS PERSONAL PREFERENCES MASSACHUSETTS SEN JOHN KERRY WHO ATTENDED THE DINNER SAYS THERE WAS NO HINT THAT MR CLINTON WAS DISTRAUGHT HE WAS EXTREMELY UPBEAT VERY FUNNY AND FULL OF ENERGY AND ENTHUSIASM THE SENATOR SAYS HE STRUCK ME AS BEING NOT SOMEONE SIGNIFICANTLY DISTRACTED AIDES SAY THE PRESIDENT STRIVES TO PUT ON A STRONG FACE TO THE OUTSIDE WORLD HIS DOMESTIC TRIPS HAVE HELPED GIVE HIM CONFIDENCE THAT WHILE WHITEWATER IS A BIG ISSUE IN WASHINGTON IT ISN'T ONE THAT HURTS HIM BADLY IN THE COUNTRY IN FACT ONE REASON FOR THE PRESIDENT'S FREQUENT TRAVEL IS TO HIGHLIGHT HIS LEGISLATIVE AGENDA AND TO TRY TO OVERSHADOW THE CONTROVERSY AT TIMES IT WORKS ALONG ROPELINES IN DALLAS VERO BEACH FLA AND SAN DIEGO HE DIDN'T HEAR GROUSING ABOUT WHITEWATER THERE WAS MOSTLY ENCOURAGEMENT TYPICAL WAS ONE WOMAN IN CENTURY CITY FLA WHO SHOUTED TO MR CLINTON DON'T WORRY ABOUT WHITEWATER WE WANT HEALTH CARE THE PRESIDENT LOOKED UP ACKNOWLEDGED THE SENTIMENT WAVED AND GAVE A THUMB'S UP MR CLINTON HAS HAD TO DEAL WITH SOME HARSH QUESTIONS AS WELL INCLUDING ABOUT WHITEWATER AND HE DIDN'T LIKE IT A BIT AFTER THE CHARLOTTE NC TOWN HALL MEETING LAST WEEK IN WHICH HE FIELDED SEVERAL HARDBALL QUERIES HE WAS SAID BY AIDES TO HAVE FUMED OPENLY ABOUT THE UNUSUAL HOSTILITY IN THE AUDIENCE LATER HIS STAFFERS WERE ACCUSED OF TRYING TO SALT THE TOWN HALL MEETING IN KANSAS CITY KAN LAST THURSDAY WITH MORE FRIENDLY QUESTIONERS A CHARGE THEY DENY STILL MR CLINTON TO HIS PRIVATE DISTRESS WAS PEPPERED WITH A FEW TOUGH QUESTIONS INCLUDING ONE ABOUT THE TOPIC HE THOUGHT HE COULD CLEARLY CONTROL HEALTH CARE BUT STILL MR CLINTON RELISHES THE TIMES WHEN HE CAN DIRECTLY ANSWER HIS CRITICS AFTER A NEWS CONFERENCE WITH EDUARD SHEVARDNADZE THE HEAD OF THE GEORGIAN REPUBLIC HE CAME BACK TO THE WEST WING PUMPED UP WHY ARE YOU IN SUCH A GOOD MOOD AN AIDE ASKED BECAUSE I FINALLY GOT A CHANCE TO ANSWER SOME QUESTIONS I FINALLY HAD A CHANCE TO DEFEND MYSELF I FINALLY HAD MY CHANCE TO DEFEND HILLARY MRS CLINTON DESCRIBED BY FRIENDS AS GREATLY DISTRESSED BY THE QUESTIONING OF HER INTEGRITY HAS APPRECIATED HER HUSBAND'S STRONG DEFENSE AS SHE HAS BECOME A MAJOR CHARACTER IN THE WHITEWATER SOAP OPERA WITH INVESTIGATORS EXAMINING HER COMMODITIES TRADING PROFITS AND FORMER LEGAL CLIENTS SHE HAS TOLD FRIENDS HOW IMPORTANT THE PRESIDENT'S RESILIENCE HAS BEEN IN HELPING HER WEATHER THE STORM IT APPEARS HOWEVER THAT THE FIRST LADY HAS BACKED AWAY FROM GETTING INVOLVED WITH SOME MAJOR ISSUES THAT SHE WOULD NORMALLY BE EXPECTED TO WEIGH IN ON MODERATES EXPECTED THAT SHE WOULD HAVE TO BE DEALT WITH ON WELFARE REFORM AND THE CRIME BILL PERHAPS TO MAKE THEM MORE PALATABLE TO LIBERALS BUT SHE HASN'T HAD ANY REAL IMPACT ON EITHER HER SPOKESPEOPLE INSIST THIS IS JUST BECAUSE SHE IS FOCUSING ON HEALTHCARE REFORM PRESIDENT CLINTON HAS INSTRUCTED HIS STAFF NOT TO EXPRESS BITTERNESS AND FOR THE MOST PART THEY ARE OBLIGING AT THE END OF THE PRACTICE SESSION FOR HIS RECENT PRIMETIME NEWS CONFERENCE POLITICAL ADVISER PAUL BEGALA WAS SURPRISED BY THE EASYGOING TONE OF THE MEETING MR PRESIDENT HE JOKED WHAT WE REALLY NEED IS MORE BITTERNESS AND SELFPITY THE ENTIRE OVAL OFFICE ERUPTED WITH LAUGHTER 9404110135 940411 COMAIR PASSENGER BOARDINGS RISE CINCINNATI COMAIR HOLDINGS INC SAID PASSENGER BOARDINGS FOR MARCH ROSE 25 TO 274256 FROM 219354 A YEAR EARLIER REVENUE PASSENGER MILES OR ONE PASSENGER FLYING ONE MILE INCREASED 475 IN MARCH TO 749 MILLION FROM 508 MILLION THE PARENT COMPANY OF REGIONAL AIRLINE COMAIR SAID FOR THE YEAR ENDED MARCH 31 PASSENGER BOARDINGS ROSE 14 TO 27 MILLION FROM 24 MILLION REVENUE PASSENGER MILES FOR THE YEAR TOTALED 6964 MILLION A 28 INCREASE FROM 5455 MILLION A YEAR EARLIER 9404110134 940411 FOREIGNEXCHANGE TRADING POUNDS JAPAN'S KASHIMA BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPANESE OIL REFINER KASHIMA OIL CO ANNOUNCED A 1525 BILLION YEN 145 BILLION LOSS FROM FOREIGNEXCHANGE TRADING ONE OF THE BIGGEST SUCH LOSSES ON RECORD PRESIDENT HACHIRO OBATA WILL STEP DOWN TO TAKE RESPONSIBILITY THE COMPANY SAID KASHIMA A MEDIUMSIZED REFINER WITH TIES TO INDUSTRY GIANT JAPAN ENERGY CORP WILL DECLARE A 619 BILLION YEN NET LOSS IN CONNECTION WITH THE FOREIGNEXCHANGE CHARGE AND WILL ALSO SELL UNSPECIFIED PROPERTY AND SECURITIES KASHIMA SAID THE LOSSES WON'T AFFECT ITS CORE REFINING BUSINESS KASHIMA IS THE SECOND JAPANESE OIL COMPANY IN TWO YEARS TO SUFFER A MAJOR POUNDING IN FOREIGNEXCHANGE TRADING LAST YEAR SHOWA SHELL SEKIYU KK AN AFFILIATE OF THE ROYAL DUTCH/SHELL GROUP HAD A 1663 BILLION YEN FOREIGNEXCHANGE LOSS LIKE SHOWA SHELL KASHIMA WAS SITTING ON ITS LOSSES FOR SEVERAL YEARS BEFORE THEY CAME TO LIGHT DESPITE GOVERNMENT EFFORTS TO TIGHTEN SCRUTINY OVER SUCH TRADING AFTER SHOWA SHELL ANNOUNCED ITS LOSS JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY REPORTEDLY QUIZZED OTHER OIL COMPANIES ABOUT THEIR DEALINGS BUT KASHIMA APPARENTLY DIDN'T DISCLOSE THE LOSS KASHIMA OFFICIALS WEREN'T AVAILABLE FOR COMMENT YESTERDAY IT MAY BE NO COINCIDENCE THAT TWO JAPANESE OIL COMPANIES SHOULD EACH SUFFER SUCH HUGE LOSSES WHILE JAPAN IS ONE OF THE WORLD'S LARGEST OIL CONSUMERS ITS OIL COMPANIES HAVE RELATIVELY LITTLE EXPERIENCE IN INTERNATIONAL MARKETS OWING TO YEARS OF HEAVY GOVERNMENT CONTROL UNTIL MITI BEGAN A DEREGULATION CAMPAIGN IN THE 1980S MUCH OF THE REFINER'S OIL WAS PURCHASED THROUGH JAPANESE TRADING COMPANIES WHICH HAVE MORE EXPERIENCE IN FOREIGNEXCHANGE OPERATIONS KASHIMA APPARENTLY LOST MONEY THROUGH THE FORWARD FOREIGNEXCHANGE MARKET WHERE PARTIES AGREE TO BUY AND SELL CURRENCIES AT AGREED UPON RATES YEARS AHEAD OF TIME THIS ENABLES A COMPANY TO BETTER BUDGET ITS LONGTERM COSTS HOWEVER IT PROVES DISASTROUS IF EXCHANGE RATES SWING WILDLY AND THE COMPANY HASN'T HEDGED ITSELF WITH ANOTHER CONTRACT THAT LETS IT REVERSE ITS POSITION THE DAMAGE CAN WORSEN OVER THE YEARS SHOWA SHELL ORIGINALLY ANNOUNCED ITS LOSS AT 125 BILLION YEN BUT TOOK MORE OF A HIT AS THE YEN STRENGTHENED IN 1993 KASHIMA HAS APPARENTLY CLOSED OUT ITS POSITIONS AND WON'T HAVE FURTHER LOSSES FROM ITS DISCLOSED FOREIGNEXCHANGE TRADING 9404110133 940411 INTERNATIONAL WASHINGTON INSIGHT CHANGES AT EUROPEAN DEVELOPMENT BANK MAY FALL SHORT OF IMPRESSING CONGRESS BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A GRAND UNDERSTATEMENT SEN PATRICK LEAHY D VT RECENTLY NOTED THAT MULTILATERAL DEVELOPMENT BANKS WOULD NOT WIN A POPULARITY CONTEST IN THE CONGRESS NONE THOUGH HAS ENDURED A DRUBBING LIKE THE ONE DEALT THE LONDONBASED EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT THE EBRD IN WHICH THE US IS THE SINGLE LARGEST SHAREHOLDER GOT ZEROED OUT IN LAST YEAR'S US BUDGET DAMAGING ITS CREDIBILITY AND IMPERILING ITS PUSH TO SUPPORT MARKET ECONOMIES IN WHAT USED TO BE THE SOVIET EMPIRE CONGRESS WAS REACTING TO SCALDING CRITICISM OF THE BANK AND ITS FORMER PRESIDENT JACQUES ATTALI WHOSE LAVISH SPENDING AND ODD ACCOUNTING HABITS ULTIMATELY FORCED HIM INTO A HUMILIATING RESIGNATION THE BANK'S NEW PRESIDENT FORMER INTERNATIONAL MONETARY FUND CHAIRMAN JACQUES DE LAROSIERE HAS GONE A LONG WAY TOWARD RESTORING CONFIDENCE IN THE INSTITUTION NEXT MONTH CONGRESS WILL CONSIDER WHETHER TO REWARD THE CHANGE WITH A NEW INFUSION OF FUNDS MR DE LAROSIERE RECENTLY WAS MAKING THE ROUNDS IN WASHINGTON TELLING OF COSTCUTTING AND COMPARATIVE AUSTERITY AT THE BANK'S LONDON HEADQUARTERS STAFFERS ARE PROHIBITED FROM FLYING FIRST CLASS MR DE LAROSIERE HIMSELF HAGGLED HIS NIGHTLY HOTEL BILL IN WASHINGTON DOWN TO 95 FROM 104 ALL THAT EASES CONGRESSIONAL OUTRAGE TOWARD THE BANK BUT IT DOESN'T ALLEVIATE PROBLEMS STEMMING FROM THE BROADER AVERSION TO MULTILATERAL INSTITUTIONS IN THE VIEW OF TOO MANY LAWMAKERS THESE INSTITUTIONS EAT UP US MONEY BUT SLIP OUTSIDE DIRECT US CONTROL MOREOVER BUDGET PRESSURES RELENTLESSLY THREATEN THE BANKS THIS YEAR THE EBRD WILL BE COMPETING FOR FUNDS WITH A 900 MILLION AID REQUEST FOR THE FORMER SOVIET UNION AS WELL AS WORLD BANK PROGRAMS THAT SUPPORT THE POOREST OF THE WORLD'S POOR IT'S GOING TO BE A TOUGH SELL PARTICULARLY BECAUSE FUNDING LEVELS ARE SO TIGHT SAYS ONE HOUSE STAFFER PREDICTING THAT CONGRESS ALMOST CERTAINLY WON'T PROVIDE THE FULL 70 MILLION THE ADMINISTRATION REQUESTED THE CONGRESSIONAL TENDENCY TO GIVE THE MULTILATERALS SHORT SHRIFT SHOWS UP IN A THUMPING 847 MILLION US STATE OF ARREARS TO THE INSTITUTIONS THIS SUM REPRESENTS MONEY THAT THE US HAS PROMISED BUT CONGRESS HAS WITHHELD THAT'S A POOR RECORD FOR THE WORLD'S BIGGEST ECONOMY WHICH VIEWS ECONOMICS AS THE KEY TO STABILITY IF WASHINGTON CONSIDERS THE STABLE TRANSITION OF THE COLLAPSED COMMUNIST EMPIRE ITS TOP FOREIGNPOLICY PRIORITY IT SHOULD SUPPORT THE EBRD DESPITE THE BANK'S EARLY EXCESSES ITS PROGRAMS HAVE BEEN AT LEAST AS SUCCESSFUL AS THOSE MOUNTED FROM WASHINGTON WHICH HAVE POURED AID MONEY LARGELY INTO THE COFFERS OF US CONSULTANTS WITH LITTLE TANGIBLE BENEFIT FOR ORDINARY RUSSIANS OR UKRAINIANS THE EBRD IS FINANCING PROJECTS IN THE FORMER EAST BLOC WITH SOME 27 US COMPANIES PARTICIPATING AS COINVESTORS CONCERNS WORKING WITH THE BANK INCLUDE COCACOLA CO BELL ATLANTIC CORP AND NEWMONT MINING CORP THE EBRD LIKE THE INTERNATIONAL FINANCE CORP THE PRIVATESECTOR ARM OF THE WORLD BANK SEEKS TO CONCENTRATE ON PRIVATE COMPANIES RATHER THAN GOVERNMENTS WE HAVE TO BE PRESENT IN THE REAL ECONOMY AT THE ENTERPRISE LEVEL MR DE LAROSIERE SAID IN A RECENT INTERVIEW HE ADDED THAT THE BANK IS TRYING TO REACH MORE MEDIUM OR SMALL ENTERPRISES WHICH CAN HELP FILL THE ECONOMIC VACUUM LEFT BY THE INDUSTRIAL DINOSAURS THAT ARE COLLAPSING THROUGHOUT THE OLD SOVIET BLOC THE NEWER ENTERPRISES AREN'T SADDLED WITH THE PROBLEMS OF THE PAST AND THEY OFTEN HAVE GREATER PROSPECTS OF SUCCESS HE SAID THE BANK HAS HAD TROUBLE MEETING A REQUIREMENT THAT 60 OF ITS LENDING GO TO PRIVATESECTOR RATHER THAN STATE PROJECTS THAT GOAL IS WORTHY THE WORLD BANK IN ITS EARLY DAYS SQUANDERED FUNDS BY FUNNELING MONEY THROUGH INEFFICIENT AND OFTEN CORRUPT GOVERNMENTS HOWEVER THE EBRD'S DIFFICULTY IN MEETING THE 60 TARGET SHOULDN'T BE BLAMED ENTIRELY ON THE BANK ITSELF WITH THE EXCEPTION OF THE CZECH REPUBLIC THE EAST BLOC GOVERNMENTS APPROACHED PRIVATIZATION IN FITS AND STARTS UNTIL RECENTLY THERE WERE TOO FEW SOLIDLY POSITIONED PRIVATE ENTERPRISES FOR THE BANK TO SUPPORT PERHAPS THE BANK'S BIGGEST PROBLEM IS ITS SIZE WITH ABOUT 12 BILLION IN CAPITAL IT IS OVERWHELMED BY THE SIZE OF ITS TASK EBRD BANKERS CONCEDE THAT THEIR EFFORTS SEEM LIKE DROPS IN THE BUCKET BUT THAT IS THE NATURE OF ECONOMIC REHABILITATION IF THE US HAS A STAKE IN THE ECONOMIC REPAIR OF THE EAST BLOC AND FEW WOULD ARGUE IT DOESN'T IT SHOULDN'T SHORTCHANGE ANY PLAYER THAT IS HELPING ENTERPRISES GET ON THEIR FEET MOREOVER INVESTMENT IN THE EBRD CAN TRANSLATE TO GREATER LEVERAGE THAN DIRECT US AID SINCE THE BANK GETS OTHER GOVERNMENTS AS WELL AS PRIVATE CORPORATIONS AND BANKS INVOLVED IN ITS EFFORTS 9404110132 940411 AMERICA WEST AIR MARCH TRAFFIC PHOENIX AMERICA WEST AIRLINES SAID ITS MARCH TRAFFIC ROSE 182 FROM A YEAR EARLIER THE CARRIER REPORTED 109 BILLION REVENUE PASSENGER MILES FOR THE MONTH UP FROM 926 MILLION IN MARCH 1993 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 732 FROM 634 A YEAR EARLIER FOR THE YEAR TO DATE TRAFFIC ROSE 141 TO 29 BILLION REVENUE PASSENGER MILES FROM 26 BILLION A YEAR EARLIER LOAD FACTOR ROSE TO 678 FROM 601 9404110131 940411 RHODE ISLAND DINER SETTLES DISPUTE WITH DISNEY CO PAWTUCKET RI MODERN DINER THE LOCAL LANDMARK THAT SUED WALT DISNEY CO FOR TRADEMARK VIOLATION WHEN THE DINER'S LIKENESS APPEARED ON A MICKEY MOUSE SWEAT SHIRT SAID IT SETTLED THE CASE UNDER THE SETTLEMENT MODERN DINER SAID IT WILL RECEIVE A PAYMENT FROM JERRY LEIGH INC LOS ANGELES THE DISNEY LICENSEE THAT DESIGNED AND MARKETED THE SWEAT SHIRT DISNEY IS NOTED FOR AGGRESSIVELY PROTECTING ITS OWN TRADEMARKS NICHOLAS DEMOU OWNER OF MODERN DINER WHOSE DISPUTE WITH DISNEY WAS THE SUBJECT OF A WALL STREET JOURNAL ARTICLE EARLIER THIS YEAR SAID HE WAS VERY SATISFIED WITH THE SETTLEMENT HE SAID HE COULDN'T DISCUSS TERMS 9404110130 940411 MARQUETTE ELECTRONICS INC MILWAUKEE MARQUETTE ELECTRONICS INC SAID IT AGREED TO BUY COROMETRICS MEDICAL SYSTEMS A UNIT OF AMERICAN HOME PRODUCTS CORP FOR 73 MILLION MARQUETTE MAKES MEDICAL ELECTRONICS EQUIPMENT AND SYSTEMS FOR THE DIAGNOSIS MONITORING AND INFORMATION INTEGRATION OF PATIENTS REQUIRING CRITICAL CARE COROMETRICS MAKES A LINE OF FETAL MONITORS THE COMPANY SAID THE TRANSACTION IS SUBJECT TO GOVERNMENT ANTITRUST CLEARANCE AND TO APPROVAL BY AMERICAN HOME PRODUCTS' BOARD 9404110129 940411 NEWCAR SALES RISE IN ITALY MILAN NEWCAR SALES IN ITALY LAST MONTH ROSE 16 FROM THE YEAR EARLIER THE FIRST INCREASE IN 19 MONTHS ACCORDING TO FIGURES RELEASED BY THE NATIONAL ASSOCIATION OF CAR MANUFACTURERS ANFIA ANFIA SAID 193030 NEW CARS WERE SOLD IN MARCH COMPARED WITH 189966 IN MARCH 1993 LAST MONTH'S RESULTS AFTER MANY MONTHS OF LOWER SALES COULD REPRESENT THE FIRST POSITIVE SIGNAL EVEN IF SOME EASTER SEASONAL VARIATIONS AFFECTED THE FIGURES ANFIA SAID IN MARCH DOMESTIC BRANDS CAPTURED 45 OF THE ITALIAN MARKET FOR AUTOMOBILES COMPARED WITH 43 IN THE YEAREARLIER PERIOD 9404110128 940411 BNL PLANS TO CONSOLIDATE US BUSINESS IN NEW YORK NEW YORK AP ITALIAN STATEOWNED BANK BANCA NAZIONALE DEL LAVORO IS CLOSING TWO US BRANCHES INCLUDING THE ATLANTA OFFICE THAT ILLEGALLY LOANED 55 BILLION TO IRAQ IN THE YEARS BEFORE THE PERSIAN GULF WAR THE BANK ALSO IS CLOSING ITS MIAMI BRANCH AND RESTRUCTURING ITS CHICAGO AND LOS ANGELES BRANCHES TO CONSOLIDATE US BUSINESS IN NEW YORK THE BANK SAID IN A STATEMENT BNL IS ONE OF ITALY'S LARGEST BANKS WITH MORE THAN 20000 EMPLOYEES AND 655 BILLION IN ASSETS WHILE WE REMAIN STRONGLY COMMITTED TO THE US MARKET WE MUST STRIVE FOR BETTER FOCUSED AND MORE COSTEFFECTIVE OPERATIONS IN THE US AND WORLDWIDE DAVIDE CROFF MANAGING DIRECTOR OF BNL SAID IN A STATEMENT BNL DIDN'T ELABORATE ON THE REASONS FOR THE CUTBACKS OR WHETHER THEY WERE RELATED TO THE IRAQ LOAN SCANDAL THAT ENSNARED THE ATLANTA BRANCH 9404110127 940411 MANAGER'S JOURNAL THEY LAUGHED WHEN I SAT DOWN TO WRITE BY PHIL THEIBERT WANT TO WRITE COMPELLING LETTERS AND MEMOS WANT TO WRITE PERSUASIVE COPY STUDY YOUR DIRECT MAIL YOU CANNOT BORE PEOPLE INTO BUYING THE YEARS I SPENT WRITING DIRECT MAIL COPY DRILLED THAT CLASSIC DAVID OGILVY LINE INTO MY HEAD THAT'S WHY I LOVE JUNK MAIL IT PROVIDES THE BEST WRITING COURSE IN THE WORLD EVERY WORD IS DESIGNED TO PRODUCE RESULTS THE PROS HAVE FIVE SECONDS TO HOOK YOU IF YOU DON'T CALL THAT 800 NUMBER THEY'RE FIRED SO THEY KNOW HOW TO USE WORD AND PHRASE CUES LIKE NO ONE ELSE IN BUSINESS CENT IS MASCULINE PENNY IS FEMININE TAKE THE QUIZ INSIDE BEATS TAKE THE TEST INSIDE PEOPLE LOVE QUIZZES HATE TESTS POSTAGEFREE BEATS POSTAGEPAID WITH UPSCALE CUSTOMERS USE COMPLIMENTARY NOT FREE DO YOU MAKE THESE MISTAKES IN ENGLISH BEATS ARE YOU AFRAID OF MAKING MISTAKES IN ENGLISH AND ALWAYS INCLUDE A PS' 80 OF ALL DIRECT MAIL RECIPIENTS READ THEM YOU CAN USE THE SAME KIND OF PSYCHOLOGY TO MAKE SURE YOUR OWN MEMOS GET READ HERE ARE SOME CORPORATE WRITING TIPS THAT CAN BE FOUND IN YOUR DIRECT MAIL EMPHASIZE CONTROL THE OPTIMA CARD PUTS THE RIGHT PERSON IN CHARGE OF YOUR INTEREST RATE YOU PEOPLE WANT TO BE IN CONTROL OF THEIR LIVES FOR A MEMO THIS SEMINAR PUTS THE RIGHT PERSON IN CHARGE YOU TAP INTO FEAR A GREAT HEADLINE I'LL NEVER LOSE MY JOB I'LL NEVER LOSE MY JOB IT TAPPED RIGHT INTO MY SENSE OF SECURITY AND FEAR OF INSECURITY IN A MEMO YOU COULD ASK WHAT IS THE ONE MISTAKE THAT COULD RUIN US OR SIMPLY BEGIN BY SAYING PROTECT YOURSELF PROMISE TO UNLOCK A PUZZLE THE DEAF HEAR WHISPERS COMPELS YOU TO READ ON FOR A LETTER TO YOUR SALES FORCE HOW I DOUBLED MY CLIENT LIST IN ONE EVENING PROMISE EXCLUSIVITY QUITE FRANKLY OUR CREDIT CARD IS NOT FOR EVERYONE AND EVERYONE WHO APPLIES FOR MEMBERSHIP IS NOT APPROVED IF IT WORKS FOR THEM IT CAN WORK FOR YOU I'M SENDING THIS TO ONLY A SELECT FEW TANTALIZE THINK HOW WONDERFUL IT WOULD FEEL TO WALK WITHOUT PAIN THIS CAN BE APPLIED TO MOST COMPANY PROBLEMS FOR A MEMO THINK HOW WONDERFUL IT WOULD BE TO REDUCE OUR INVENTORY COSTS SHOW WHAT'S IN IT FOR ME SAVE UP TO 60 ON THE BOOKS YOU ORDER FOR A LETTER SAVE UP TO 60 ON OUR LONGDISTANCE CALLS USE HEADLINE GRABBERS GOLF PROS BANNED FROM USING NEW HOT' BALL FLIES TOO FAR TO ANNOUNCE A TRAINING PROGRAM LEARN TO USE A COMPUTER IN LESS THAN AN HOUR PAINT A PICTURE LISTEN TO 500 DOLPHINS SHRIEKING IN PANIC AS THEY GASP FOR AIR FOR A MEMO LISTEN TO 500 ANGRY CUSTOMERS SCREAMING FOR REFUNDS UNLESS YOU STRESS CONVENIENCE NEVER WASTE ANOTHER EVENING RETURNING VIDEOS WE PICK THEM UP TELL YOUR EMPLOYEES HOW YOU CAN MAKE THEIR LIVES EASIER TO PROMOTE YOUR TRAVEL DESK WRITE NEVER STAND IN LINE FOR ANOTHER TICKET EMPHASIZE THE NEGATIVE ARE YOU MAKING THESE SEVEN COMMON MISTAKES IN YOUR GOLF GAME IN YOUR OFFICE ASK ARE YOU MAKING THESE SEVEN COMMON MISTAKES IN YOUR ENTRIES PLAY ON UNDERDOG APPEAL REMEMBER THE BRILLIANT AD THEY LAUGHED WHEN I SAT DOWN AT THE PIANO PEOPLE LOVE UNDERDOGS WHO SUCCEED USE THEY LAUGHED WHEN I ORDERED 100 NEW OR THEY THOUGHT I WAS NUTS WHEN ASK PROVOCATIVE QUESTIONS WHEN AN EMPLOYEE GETS SICK HOW LONG DOES IT TAKE YOUR COMPANY TO RECOVER FOR A MEMO ARE OUR PUMPS COSTING MORE TO OPERATE THAN THEY SHOULD USE THE BARKER TECHNIQUE CALL YOUR FRIENDS CHECK YOUR FUSE BOX AND GET READY TO ROCK BECAUSE WE'RE BRINGING THE WORLD'S LOUDEST MOST AWESOME THOSE PEOPLE ARE EXCITED SHOW PASSION AND EXCITEMENT IN YOUR LETTERS THIS COMPANY IS ABOUT TO TAKE OFF LIKE NEVER BEFORE APPEAL TO CURIOSITY/GREED IF YOU THINK YOU COULD NEVER GET A BOAT A CAR AND A TRIP FOR 2250 THINK AGAIN FOR A MEMO IF YOU THOUGHT WE CAN'T EARN 100000 WITH THIS NEW PRODUCT THINK AGAIN ELICIT GUILT STRESS URGENCY IN THE 10 SECONDS IT TOOK YOU TO OPEN AND BEGIN TO READ THIS LETTER FOUR CHILDREN DIED FROM THE EFFECTS OF MALNUTRITION OR DISEASE OW RIGHT TO THE HEART PERHAPS YOU COULD USE IN ONE WEEK OUR COMPANY WILL WASTE 10000 UNLESS YOU USE BULLETS PEOPLE SKIPREAD PROS BULLET IMPORTANT POINTS FOR EXAMPLE WHEN SELLING DRIVING GLASSES THEY WRITE BEAT HEADLIGHT GLARE DRIVE THROUGH BLINDING RAIN INCREASE VISION AND SAFETY PS DON'T THROW AWAY THAT DIRECT MAIL IT'LL BEAT ANY WRITING COURSE YOU EVER TOOK MR THEIBERT LIVES IN PHOENIX AND IS A SPEECH WRITER FOR A LARGE WESTERN UTILITY 9404110126 940411 FINANCING BUSINESS ENSERCH CORP ENSERCH CORP DALLAS SAID IT SOLD THREE MILLION PREFERRED SHARES FOR 75 MILLION EACH SHARE REPRESENTS 1/40TH OWNERSHIP IN ONE SHARE OF THE NATURAL GAS COMPANY'S ADJUSTABLE RATE CUMULATIVE PREFERRED STOCK SERIES F THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PROCEEDS OF THE SALE WILL BE USED TO PAY DOWN DEBT 9404110125 940411 ATHLETICSHOE MAKERS TO POST SLUGGISH RESULTS OUTDOORFOOTWEAR FIRMS DIDN'T DO ANY BETTER IN THE LATEST QUARTER BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL ATHLETICSHOE MANUFACTURERS STILL PLAYING CATCHUP AFTER BEING CAUGHT FLATFOOTED BY THE YEAROLD BOOM IN RUGGED OUTDOOR SHOES ARE EXPECTED TO REPORT LACKLUSTER EARNINGS IN THEIR RECENTLY ENDED QUARTERS BUT WITH A FEW EXCEPTIONS LONGTIME OUTDOORFOOTWEAR MAKERS DIDN'T FARE ANY BETTER AS THE RUSH OF TRADITIONAL SNEAKER MANUFACTURERS INTO THE OUTDOOR MARKET INTENSIFIED COMPETITION AND LOWERED PRICES INDUSTRYWIDE ANALYSTS ESTIMATE THAT REEBOK INTERNATIONAL LTD'S FIRSTQUARTER EARNINGS INCREASED 5 TO 8 AND THAT BOTH LA GEAR INC AND OUTDOOR SPECIALIST TIMBERLAND CO WILL REPORT LOSSES DECKERS OUTDOOR CORP HOWEVER SHOULD REPORT A 15 EARNINGS IMPROVEMENT NIKE INC THE NATION'S LARGEST FOOTWEAR MANUFACTURER EARLIER REPORTED NET INCOME OF 632 MILLION OR 85 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED FEB 28 DOWN FROM 895 MILLION OR 116 A SHARE A YEAR AGO NIKE OF BEAVERTON ORE SAID REVENUE FELL 10 TO 8718 MILLION FROM 972 MILLION SHEARSON LEHMAN BROTHERS ANALYST JOSIE ESQUIVEL RECKONS REEBOK'S FIRSTQUARTER NET INCREASED 8 TO 80 CENTS A SHARE FROM 74 CENTS LAST YEAR REVENUE CLIMBED 4 TO 866 MILLION FROM 825 MILLION A YEAR AGO REEBOK'S EARNINGS COMPARISONS BENEFITED FROM A WEAK YEARAGO FIRST QUARTER WHEN THE STOUGHTON MASS CONCERN'S RESULTS WERE HURT AS A RESULT OF A DISAGREEMENT WITH RETAILERS ON CERTAIN PRICING POLICIES MS ESQUIVEL SAID REEBOK'S EUROPEAN BUSINESS DEPRESSED BY A RECESSION OVERSEAS HAS ALSO STARTED TO REBOUND AND SOME OF THE SLACK FROM A FASHION SWITCH TO HIKING BOOTS FROM SNEAKERS IS BEING PICKED UP BY REEBOK'S AGGRESSIVE ENTRY INTO THE RUGGEDOUTDOOR MARKET MS ESQUIVEL SAID LA GEAR LOS ANGELES SEEKING TO GET BACK ON TRACK FOLLOWING A STRING OF DISMAL RESULTS IS EXPECTED TO REPORT A NARROWER FISCAL FIRSTQUARTER LOSS OF ABOUT 30 CENTS A SHARE COMPARED WITH LAST YEAR'S 59 CENTS A SHARE SAID GARY JACOBSON A KIDDER PEABODY & CO ANALYST MR JACOBSON ESTIMATED THAT LA GEAR'S REVENUE CLIMBED MORE THAN 35 TO 103 MILLION BUT LEAVING ROOM FOR SURPRISES MR JACOBSON ADDED THAT THE COMPANY'S REVENUE COULD EXCEED HIS ESTIMATE MR JACOBSON SAID REVENUE IN THE QUARTER ENDED FEB 28 WAS HELPED BY A ONETIME SALE OF APPROXIMATELY 20 MILLION IN EXCESS INVENTORY TO WALMART STORES INC WHICH DOESN'T NORMALLY SELL LA GEAR SHOES WITHOUT THE EXTRAORDINARY SALE LA GEAR'S REVENUE GROWTH WOULD HAVE STILL BEEN IN THE DOUBLE DIGITS MR JACOBSON ADDED LA GEAR WAS HURT AMONG SOME RETAILERS WHEN IT DECIDED TWO YEARS AGO TO EXPAND RAPIDLY BY SELLING TO DISCOUNTERS ANALYSTS SAID BUT RETAILERS ARE BEGINNING TO ACCEPT LA GEAR'S NAME AGAIN MR JACOBSON SAID TIMBERLAND WILL REPORT A FIRSTQUARTER PERSHARE LOSS OF 18 CENTS AGAINST NET OF 21 CENTS A YEAR AGO PREDICTS LEE ALLEN PRESIDENT OF ALLEN FINANCIAL ADVISORS AN INSTITUTIONAL FUND MANAGEMENT ADVISER IN BOSTON MR ALLEN SAID PROFIT MARGINS AT THE HAMPTON NH BOOT MAKER HAVE BEEN SQUEEZED BY A PRICE WAR IN THE CASUAL AND BOAT SHOE MARKET AS COMPETITORS CONTINUE TO CROWD THE FIELD TIMBERLAND'S BOAT SHOES HAVE COME DOWN IN PRICE BY ABOUT 15 FROM THEIR 85 TAG THAT DISCOUNT WAS PRECEDED LAST QUARTER BY A PRICE REDUCTION IN THE COMPANY'S WEATHERBUCK CASUAL SHOE LINE WHICH NOW SELLS FOR ABOUT 95 DOWN FROM 135 PREVIOUSLY COSTS ASSOCIATED WITH TIMBERLAND'S RECENT ACQUISITION OF ITS ITALIAN DISTRIBUTOR AND THE STARTUP OF A SUBSIDIARY IN ITALY ARE ALSO PARTLY TO BLAME FOR THE FIRSTQUARTER LOSS THE COMPANY ISN'T EXPECTED TO WRITE OFF ANY OF THE COSTS ASSOCIATED WITH THE ACQUISITION HE SAID REVENUE FUELED BY GROWTH IN APPAREL THE BOAT SHOE BUSINESS AND A PICKUP IN THE EUROPEAN ECONOMY SHOULD HAVE CLIMBED BY MORE THAN 40 TO 100 MILLION TO 105 MILLION FROM 706 MILLION THE COMPANY SHOULD GET ROLLING AGAIN LATER IN THE YEAR FOLLOWING A SLOW START HOWEVER MR ALLEN PREDICTED HE'S COUNTING ON A BULLISH RUGGED OUTDOOR BUSINESS AND LEAVING UNREVISED HIS FULLYEAR EARNINGS ESTIMATE FOR TIMBERLAND OF 290 A SHARE UP FROM LAST YEAR'S 201 MOST OF THE GAINS ARE TO COME IN THE SECOND HALF OF THE YEAR FOR TIMBERLAND WHOSE SALES ARE HEAVIEST IN THE FALL FAYE LANDES AN ANALYST FOR SMITH BARNEY SHEARSON SAID SHE EXPECTS DECKERS OUTDOOR TO REPORT A FIRSTQUARTER PROFIT EQUAL TO 38 CENTS A SHARE BASED ON 97 MILLION SHARES OUTSTANDING UP 15 FROM 33 CENTS A SHARE IN THE YEARAGO QUARTER EARNINGS GROWTH AT THE CARPINTERIA CALIF MAKER OF SPORTS SANDALS WAS ALMOST ENTIRELY THE RESULT OF SALES GROWTH MS LANDES ESTIMATES THAT SALES CLIMBED 54 IN THE FIRST QUARTER TO 267 MILLION FROM 173 MILLION A YEAR AGO APPROXIMATELY 90 OF DECKERS' SALES COME FROM ITS TEVA SPORTS SANDALS THE LEAD BRAND IN THE BURGEONING CATEGORY THEY WERE ONCE WORN BY WHITE WATER RAFTERS MS LANDES SAID BUT TODAY THE SANDALS ARE WORN BY A GROWING NUMBER OF PEOPLE FOR STREET USE AS WELL SOMETIMES WITH THICK INSULATED SOCKS RETAILER OUTLOOK FOR THE NEXT FEW MONTHS REMAINS CAUTIOUS AND ANALYSTS AREN'T BULLISH ON ANY IMMEDIATE REBOUND BY SNEAKER COMPANIES PARTICULARLY IN THE US MARKET JENNIFER BLACK GROVES A BLACK INC ANALYST WHO FOLLOWS NIKE ESTIMATED THE COMPANY'S DOMESTIC SALES IN FOOTWEAR AND APPAREL IN THE FISCAL FOURTH QUARTER WILL LAG BEHIND YEARAGO TALLIES BY 21 BUT SHE PREDICTED THAT NIKE SALES AND EARNINGS SHOULD PICK UP IN FISCAL 1995 WHICH BEGINS IN JUNE JOSIE ESQUIVEL IS A SECURITIES ANALYST FOR LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO IN AN ARTICLE YESTERDAY ABOUT ANALYSTS' EARNINGS ESTIMATES FOR ATHLETICSHOE MANUFACTURERS MS ESQUIVEL'S FIRM WAS INCORRECTLY IDENTIFIED 9404110124 940411 FINANCING BUSINESS REVCO DS INC REVCO DS INC TWINSBURG OHIO SAID IT PLANS TO RAISE 217 MILLION IN A STOCKRIGHTS OFFERING TO HELP PAY FOR ITS PENDING 600 MILLION ACQUISITION OF DRUGSTORE CONCERN HOOKSUPERX INC THE RIGHTS OFFERING WOULD ALLOW STOCKHOLDERS TO BUY ADDITIONAL SHARES EQUAL TO A PROPORTION OF THE SHARES THEY ALREADY OWN REVCO SAID BOARD APPROVAL OF THE OFFERING IS PREDICATED UPON THE SUBSCRIPTION PRICE NOT BEING HIGHER THAN 14 A SHARE OR LOWER THAN 13 A SHARE ZELL/CHILMARK FUND LP WHICH OWNS 20 OF THE COMMON STOCK AGREED TO BUY ALL THE SHARES TO WHICH IT WOULD BE ENTITLED REVCO SAID ZELL/CHILMARK ALSO AGREED TO BUY ANY SHARES NOT PURCHASED BY OTHER SHAREHOLDERS AND MAGTEN ASSET MANAGEMENT CORP WHICH OWNS 17 OF REVCO'S STOCK AGREED TO BUY THE SHARES TO WHICH IT WOULD BE ENTITLED THE DRUGSTORE CHAIN ALSO SAID IT WILL SOLICIT THE CONSENT OF HOLDERS OF ITS 9125 SENIOR NOTES DUE 2000 TO CERTAIN AMENDMENTS THE MERGER AGREEMENT BETWEEN REVCO AND HOOK SUPERX REQUIRES REVCO BY APRIL 29 TO OBTAIN THE CONSENT OR DEPOSIT SUFFICIENT FUNDS TO BUY BACK THE NOTES A SPOKESMAN WAS UNABLE TO ELABORATE ON THE AMENDMENTS 9404110123 940411 MASSACHUSETTS PANEL TO REVIEW LOAN CASES FOR POSSIBLE RACE BIAS BOSTON MASSACHUSETTS ATTORNEY GENERAL SCOTT HARSHBARGER APPOINTED A PANEL TO REVIEW CASES IN WHICH MINORITY APPLICANTS WERE DENIED MORTGAGE LENDING ABOUT 120 CASES WILL BE REVIEWED HE ANNOUNCED SATURDAY IF UNFAIR LENDING PRACTICES ARE FOUND APPLICANTS WILL RECEIVE COMPENSATION OF 15000 A NEW LOAN OR LOAN RESTRUCTURING THE PANEL IS PART OF A COMPREHENSIVE AGREEMENT REACHED BY MR HARSHBARGER WITH THE MASSACHUSETTS BANKERS ASSOCIATION AND 27 BANKING INSTITUTIONS AND MORTGAGE COMPANIES FOLLOWING A FEDERAL RESERVE BANK STUDY OF DISCRIMINATION IN MORTGAGE LENDING THE BANKERS GROUP ALSO AGREED TO ESTABLISH SIX ANTIDISCRIMINATION MEASURES INCLUDING SETTING UP A COLLEGELEVEL PROGRAM TO TRAIN AND RECRUIT MINORITIES TO ENTER THE MORTGAGE INDUSTRY 9404110122 940411 US JETS BOMB SERBS BESIEGING MUSLIM ENCLAVE AIR STRIKE SUGGESTS NATO MAY ADOPT HARDER LINE IN SETTLING BOSNIAN WAR BY THOMAS E RICKS AND ROBERT S GREENBERGER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TWO US WARPLANES BOMBED SERB NATIONALIST FORCES BESIEGING A MUSLIM TOWN IN SOUTHEASTERN BOSNIA AN ACTION THAT INDICATES NATO MAY BE TAKING A TOUGHER STANCE TO TRY TO FORCE A SETTLEMENT TO THE BOSNIAN WAR THE AIR STRIKES YESTERDAY OUTSIDE THE TOWN OF GORAZDE ABOUT 30 MILES SOUTHEAST OF SARAJEVO WERE THE FIRST EVER CARRIED OUT IN BOSNIA BY THE NORTH ATLANTIC TREATY ORGANIZATION WHICH HAS LONG PROMISED TO USE AIR POWER TO PROTECT UNITED NATIONS PEACEKEEPERS THREATENED BY THE FIGHTING THE STRIKES ALSO WERE THE SECOND OFFENSIVE ACTION EVER COMMITTED BY THE 45YEAROLD ALLIANCE THE FIRST SUCH ACTION TOOK PLACE JUST SIX WEEKS AGO WHEN US FIGHTERS SHOT DOWN FOUR SERB ATTACK JETS VIOLATING A NATOENFORCED NOFLY ZONE OVER BOSNIA THE TARGET WAS A SERB COMMAND AND COMMUNICATIONS CENTER SAID A MILITARY OFFICER FAMILIAR WITH THE SITUATION NATO AIRCRAFT WERE OVER THE AREA LAST NIGHT ASSESSING THE DAMAGE BUT IT WASN'T IMMEDIATELY CLEAR WHAT THE EFFECT OF THE BOMBING WAS THE BOSNIAN SERB MILITARY SAID THAT CIVILIAN CASUALTIES HAD OCCURRED ACCORDING TO WIRE REPORTS THE TWO AIR FORCE F16CS BASED IN AVIANO ITALY DROPPED THREE MARK82 500POUND BOMBS A PENTAGON OFFICIAL SAID THE UNITED NATIONS SAID IN A STATEMENT ISSUED IN SARAJEVO THAT IT REQUESTED THE AIR STRIKE BECAUSE BOSNIAN SERB TANKS AND ARTILLERY HAD BEGUN SHELLING THE TOWN OF GORAZDE ENDANGERING CIVILIANS AND UN PERSONNEL AN IMMEDIATE CESSATION OF THE SHELLING OF GORAZDE BY BOSNIAN SERB FORCES WAS DEMANDED THE UN SAID IT WASN'T CLEAR WHETHER NATO WAS PREPARED TO PREVENT SERB FORCES FROM TAKING THE TOWN OF GORAZDE WHICH HAS BEEN DECLARED A SAFE ENCLAVE BY THE UN PROTECTING THE TOWN AND ITS CIVILIAN POPULATION WOULD BE A SIGNIFICANT EXPANSION OF THE UN ROLE IN BOSNIA COMMENTS BY PRESIDENT CLINTON SEEMED TO INDICATE THAT NATO AIRCRAFT WOULD BE USED TO PROTECT THE CITY THE PRESIDENT SAID YESTERDAY THAT WE WERE RETALIATING THE UNITED NATIONS MADE IT ABSOLUTELY CLEAR THAT THERE WERE UN PERSONNEL IN GORAZDE THAT AN ATTACK ON THE TOWN WOULD BE INTERPRETED AS A CLEAR VIOLATION OF THE RULES HE ADDED IT'S A CLEAR CALL TO THE SERBS TO PULL BACK FROM GORAZDE AND RESUME THE NEGOTIATIONS FOLLOWING A THREEHOUR MEETING AT THE WHITE HOUSE YESTERDAY AFTERNOON OF THE PRESIDENT'S SENIOR FOREIGNPOLICY ADVISERS MADELEINE ALBRIGHT THE US AMBASSADOR TO THE UN SAID IN AN INTERVIEW WITH CABLE NEWS NETWORK THAT IT'S VERY CLEAR THAT ADDITIONAL ATTACKS WILL BE MET IN THE SAME WAY BUT A SPOKESMAN AT NATO'S SOUTHERN MILITARY HEADQUARTERS IN NAPLES ITALY INSISTED THAT NATO ISN'T NOW COMMITTED TO PREVENTING THE FALL OF GORADZE WE HAVE NEVER BEEN AUTHORIZED TO PROTECT CIVILIANS SAID SQUADRON LEADER JOHN JEFFERY A BRITISH OFFICER WE RESPONDED TO A UN REQUEST AND THAT'S ALL WE'RE DOING WHATEVER THE US AND NATO POSITION ON GORADZE IS IT IS CLEAR THAT THE US HOPES THE AIR STRIKE WILL ENCOURAGE BOSNIAN SERBS AND MUSLIMS TO BRING THEIR PEACE TALKS TO A CONCLUSION SPEAKING YESTERDAY ON NBC'S MEET THE PRESS PROGRAM JUST BEFORE THE BOMBING WHICH OCCURRED ABOUT NOON EDT SECRETARY OF STATE WARREN CHRISTOPHER SAID HE HAD BEEN TOLD BY CHARLES REDMAN THE SPECIAL US ENVOY TO THE REGION THAT THERE HAD BEEN A VERY SERIOUS DISCUSSION SATURDAY BETWEEN SERBS AND BOSNIANS ABOUT A CESSATION OF HOSTILITIES WITHIN A FEW DAYS A SENIOR US OFFICIAL SAID LATER YESTERDAY THAT THE AIR STRIKE MAKES CLEAR TO THE SERBS THAT THEY CAN'T SQUEEZE GORAZDE AS A WAY TO GAIN ADVANTAGE IN THE NEGOTIATIONS IN RECENT DAYS SERB FORCES DEPLOYING TANKS ARTILLERY AND INFANTRY GAINED CONTROL OVER HIGH GROUND OVERLOOKING GORAZDE MR CHRISTOPHER YESTERDAY TRIED TO PLAY DOWN THE MILITARY SIDE AND EMPHASIZE DIPLOMACY GORAZDE IS THE IMMEDIATE SITUATION WHERE I THINK THAT PROBABLY THE SERBS ARE TRYING TO PUT PRESSURE ON IN ORDER TO ACHIEVE THE KIND OF A CESSATION OF HOSTILITIES THAT THEY WANT HE SAID BUT WE MUST NEVER LOSE SIGHT OF THE FACT THAT THE GOAL WE'RE TRYING TO ACHIEVE HERE IS A SETTLEMENT BETWEEN THE PARTIES AND I THINK THAT CAN BEST BEGIN WITH A CESSATION OF HOSTILITIES MR CHRISTOPHER ALSO PRAISED RUSSIA FOR ITS HELP IN TRYING TO END THE FIGHTING IN BOSNIA NOTING THAT THERE WILL ALWAYS BE ELEMENTS OF RIVALRY BETWEEN THE US AND RUSSIA IN FOREIGN POLICY HE SAID THAT IN BOSNIA WHERE MOSCOW HAS INFLUENCE WITH THE SERBS BECAUSE OF HISTORIC TIES WITH THEM WE'RE WORKING RATHER CLOSELY WITH THEM ON A DAILY BASIS TO TRY TO ACHIEVE A SETTLEMENT THERE YESTERDAY'S AIR STRIKE HELPS PUT TO REST SOME CONFUSION OVER ADMINISTRATION POLICY REGARDING DEEPER INVOLVEMENT IN THE BOSNIAN WAR EARLY LAST WEEK DEFENSE SECRETARY WILLIAM PERRY AND GEN JOHN SHALIKASHVILI THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF SAID THEY OPPOSED USING AIR POWER TO PREVENT THE BOSNIAN SERBS FROM TAKING GORAZDE AFTER THOSE REMARKS WERE WIDELY INTERPRETED AS GIVING A GREEN LIGHT TO THE SERBS MR CLINTON'S NATIONAL SECURITY ADVISER ANTHONY LAKE SAID IN A SPEECH THURSDAY THAT THE US WOULDN'T RULE OUT THE USE OF AIR POWER TO PROTECT CITIES SUCH AS GORAZDE THAT HAVE BEEN DECLARED SAFE HAVENS BY THE UN 9404110121 940411 POLITICS & POLICY PENTAGON BACKS SUGGESTION TO PRIVATIZE DEPOT WORK WASHINGTON THE PENTAGON ENDORSED AN INTERNAL TASK FORCE'S RECOMMENDATION THAT MUCH OF THE MAINTENANCE WORK PERFORMED BY THE MILITARY'S DEPOTS BE TURNED OVER TO THE PRIVATE SECTOR DEPUTY DEFENSE SECRETARY JOHN DEUTCH IN A COVER LETTER TO CONGRESS CALLED THE TASK FORCE'S REPORT A CONSTRUCTIVE CONTRIBUTION TO THE PROBLEM OF HOW TO REDUCE THE MILITARY'S INFRASTRUCTURE THE PENTAGON CURRENTLY SPENDS ABOUT 15 BILLION A YEAR ON MAINTENANCE WITH LESS THAN ONETHIRD OF THAT GOING TO THE PRIVATE SECTOR SOME OF THE RECOMMENDATIONS CAN BE IMPLEMENTED IMMEDIATELY OTHERS REQUIRE CONGRESSIONAL APPROVAL THE TASK FORCE AS EXPECTED RECOMMENDED THAT THE MILITARY RETAIN ONLY A CORE OF ESSENTIAL JOBS AND TURN OVER ALMOST ALL MAJOR MODIFICATION AND UPGRADING WORK TO THE DEFENSE INDUSTRY IN ADDITION THE REPORT RECOMMENDED ENDING COMPETITION FOR CONTRACTS BETWEEN MILITARY DEPOTS AND THE PRIVATE SECTOR THE REPORT ALSO NOTED THAT THE AIR FORCE VIGOROUSLY DISSENTED FROM THOSE CONCLUSIONS 9404110120 940411 CANADIAN JOBLESS RATE DECLINES OTTAWA THE UNEMPLOYMENT RATE IN CANADA DECLINED TO 106 OF THE CIVILIAN LABOR FORCE IN MARCH ITS LOWEST LEVEL IN MORE THAN TWO YEARS STATISTICS CANADA A GOVERNMENT AGENCY SAID THE RATE IN FEBRUARY WAS 111 THE DECLINE IN MARCH RESULTED FROM A 04 INCREASE IN THE NUMBER OF PEOPLE EMPLOYED AND A 02 DECLINE IN THE LABOR FORCE EMPLOYMENT HAS INCREASED IN FOUR OF THE PAST FIVE MONTHS 9404110119 940411 BROKERAGE FIRMS LOST GROUND IN 1ST QUARTER AFTER 3 YEARS OF PROFIT GAIN WHAT WENT UP MAY COME DOWN IN 1994 BY MICHAEL SANTOLI SPECIAL TO THE WALL STREET JOURNAL NEW YORK BROKERAGE FIRMS ARE EXPECTED TO REPORT THAT EARNINGS BEGAN TO EBB IN THE FIRST QUARTER AFTER AN UNINTERRUPTED THREEYEAR RISE ANALYSTS SAID BY MOST MEASURES THE PROFITS SECURITIES FIRMS LIKELY REAPED IN THE FIRST QUARTER WERE QUITE STRONG BUT AFTER THE TORRID EARNINGS GROWTH OF LAST YEAR AND THE CURRENT VOLATILITY IN FINANCIAL MARKETS THE FIRST QUARTER IS SHAPING UP AS THE PAUSE BEFORE A GRADUAL EARNINGS SLIDE INDUSTRY COMMENTATORS SAID MOST ANALYSTS ESTIMATE THE FIRMS' FIRSTQUARTER EARNINGS WILL BE ABOUT FLAT WITH THE ROBUST LEVELS OF THE 1993 FIRST AND FOURTH QUARTERS BUT FOR ALL OF 1994 HIGHER INTEREST RATES LOWER TRADING PROFITS AND A SLOWER UNDERWRITING STREAM ARE EXPECTED TO PUSH PROFITS DOWN MORE THAN 10 BELOW 1993'S RESULTS ESPECIALLY FOR THE BIGGEST NEW YORK FIRMS AFTER UNUSUALLY HIGH VOLATILITY AND TRADING VOLUME FOR MUCH OF THE FIRST QUARTER COMMISSIONS THE CORE REVENUE STREAM FOR MANY FIRMS ARE LIKELY TO BE STRONG FIRST OF MICHIGAN ANALYST PERRIN LONG SAID THIS VIEW IS SUPPORTED BY DISCOUNT BROKER CHARLES SCHWAB CORP'S PROJECTION IT WOULD REPORT RECORD FIRSTQUARTER EARNINGS OF 66 CENTS A SHARE AHEAD OF ESTIMATES AND 10 HIGHER THE 60 CENTS A SHARE A YEAR EARLIER BUT FIRMS HEAVILY RELIANT ON FIXEDINCOME TRADING MIGHT HAVE RUN INTO DIFFICULTY AFTER INTEREST RATES INCHED UP AND INVESTORS BOLTED THE BOND MARKET IN THE SECOND HALF OF THE QUARTER BROKERS' PROFITS FROM DEALING IN BONDS FROM THEIR BIG INVENTORIES PROBABLY DECLINED AS SPREADS NARROWED MR LONG SAID OPPENHEIMER & CO ANALYST STEPHEN EISMAN SAID THE SELLOFF IN BONDS PROMPTED HIM LATE LAST MONTH TO CUT HIS ESTIMATE FOR MORGAN STANLEY GROUP INC FOR THE YEAR ENDING JANUARY 1995 TO 850 A SHARE FROM 950 SALOMON INC ALSO MIGHT BE VULNERABLE TO BONDMARKET INSTABILITY ANALYSTS SAID ESTIMATING TRADING RESULTS THOUGH IS TRICKY BECAUSE VOLATILITY CAN BE GOOD FOR TRADERS AND IT IS DIFFICULT TO KNOW WHAT POSITIONS A FIRM HAS TAKEN INDEPENDENT ANALYST JOHN KEEFE SAID SOME FIRMS MIGHT HAVE BENEFITED FROM VOLATILE BOND PRICES BECAUSE THEIR TRADING DESKS WERE ON THE RIGHT SIDE OF THE MARKET FOR THE LATEST QUARTER ANALYSTS ESTIMATE EARNINGS FOR MERRILL LYNCH & CO AT ABOUT 145 A SHARE COMPARED WITH 151 A YEAR EARLIER FOR PAINEWEBBER GROUP INC AT 73 CENTS A SHARE COMPARED WITH 84 CENTS A SHARE AND MORGAN STANLEY WHOSE FIRST QUARTER ENDS APRIL 30 AT 213 A SHARE AGAINST 229 A SHARE SALOMON WHICH HAD ONE OF ITS POORER TRADING QUARTERS A YEAR EARLIER AND HAD A NET LOSS OF 76 CENTS A SHARE IS PROJECTED TO REPORT EARNINGS OF ABOUT 125 A SHARE FOR THE FIRST QUARTER BEAR STEARNS COS IS EXPECTED TO POST NET CLOSE TO LAST YEAR'S 90 CENTS A SHARE FOR ITS THIRD QUARTER ENDED MARCH 30 IN THE FIRST QUARTER UNDERWRITING BUSINESS AND THE FEES IT GENERATES WERE ABOUT ON PAR WITH THE LEVELS IN EACH QUARTER LAST YEAR AND SHOULD HAVE BOLSTERED EARNINGS BUT THE OUTLOOK FOR INVESTMENTBANKING VOLUME OVER THE REST OF THE YEAR IS UNCERTAIN BECAUSE OF INSTABILITY IN THE FINANCIAL MARKETS ANALYSTS SAID IN RECENT WEEKS SEVERAL NEW ISSUES WERE POSTPONED AND OTHERS HAD A DIFFICULT TIME GETTING TO MARKET BUT OPPENHEIMER'S MR EISMAN SAID FOR FIRMS WITH A SIGNIFICANT INTERNATIONAL PRESENCE OVERSEAS INVESTMENTBANKING BUSINESS COULD MAKE UP FOR SOME SOFTENING IN THE DOMESTIC MARKET JOAN SOLOTAR OF DONALDSON LUFKIN & JENRETTE SAID THAT FROM THE START OF THE YEAR SHE HAS ENVISIONED THE INDUSTRY'S PROFITS SLIPPING BY AS MUCH AS 20 IN 1994 ASSUMING A MODERATE RISE IN INTEREST RATES WHICH SEEMS TO HAVE COME TO PASS ANALYSTS' CONSENSUS ESTIMATES FOR THE BIG NEW YORK WIREHOUSES ARE ONLY SLIGHTLY MORE OPTIMISTIC NET INCOME FOR MERRILL LYNCH IN 1994 IS EXPECTED TO FALL BY ABOUT 11 FOR SALOMON BY 16 AND FOR PAINEWEBBER GROUP BY 15 ANALYSTS EXPECT MORGAN STANLEY WHOSE FISCAL YEAR ENDS IN JANUARY TO EARN 11 LESS IN THE CURRENT FISCAL YEAR DEAN WITTER DISCOVER & CO WHICH DERIVES MORE THAN HALF ITS EARNINGS FROM CREDITCARD OPERATIONS IS FORECAST TO EARN SLIGHTLY MORE IN 1994 THAN IN 1993 REGIONAL FIRMS WHICH GENERALLY ARE ORIENTED TOWARD RETAIL BROKERAGE BUSINESS ARE EXPECTED TO PERFORM SOMEWHAT BETTER THAN THEIR BIGGER MORE DIVERSIFIED COMPETITORS FIRST OF MICHIGAN'S MR LONG ONE OF THE ONLY ANALYSTS WHO FOLLOWS REGIONAL FIRMS SAID THEIR RESULTS WILL BE STRONG IF THE MARKETS DON'T COLLAPSE FURTHER AND TRADING VOLUME REMAINS HIGH BUT REGIONAL FIRMS IN PARTICULAR ARE AT THE MERCY OF INDIVIDUAL INVESTORS WHO MANY FEAR MIGHT FLEE THE SECURITIES MARKETS IF THE MARKETS CONTINUE TO FLOUNDER AND IF BANK INTEREST RATES RISE MORE RECENT DATA REFLECTING A SURGE IN INDIVIDUALS TAKING SHELTER IN MONEYMARKET ACCOUNTS POURING IN 76 BILLION LAST WEEK SHOW THE PROCESS MIGHT BE STARTING BUT MR LONG SAID A SHIFT INTO MONEYMARKET FUNDS OF THAT MAGNITUDE SHOULDN'T SERIOUSLY DAMP FIRMS' ASSETMANAGEMENT AND COMMISSION REVENUE MR LONG SAID HE IS LOOKING IN 1994 FOR THE INDUSTRY TO POST EARNINGS CLOSE TO THOSE OF LAST YEAR WITHIN 5 UP OR DOWN 9404110118 940411 BOEING GETS FUNDING FROM PENTAGON TO HELP DEVELOP A LIGHTWEIGHT FIGHTER BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO RECEIVED PENTAGON FUNDING TO HELP DESIGN A LIGHTWEIGHT FIGHTER JET GIVING THE COMPANY A SHOT AT BECOMING A PRIME CONTRACTOR ON A TACTICALAIRCAFT PROGRAM FOR THE FIRST TIME IN DECADES UNDER AN AGREEMENT WITH THE ADVANCED RESEARCH PROJECTS AGENCY BOEING WILL SPLIT WITH THE GOVERNMENT 32 MILLION IN COSTS TO CONTINUE DEVELOPMENT OF A LOWCOST FIGHTER THAT COULD TAKE OFF ON SHORT RUNWAYS THEN LAND BY DESCENDING VERTICALLY THE PLANE WHICH ALSO COULD PERFORM CONVENTIONAL TAKEOFFS AND LANDINGS WOULD BE USED BY THE MARINE CORPS AND THE AIR FORCE RIVALS MCDONNELL DOUGLAS CORP AND LOCKHEED CORP ALREADY HAD BEEN FUNDED FOR SIMILAR PROJECTS LAST YEAR AFTER A COMPETITION THAT LEFT BOEING AND ITS PARTNERS BEHIND TO PAY TENS OF MILLIONS OF DOLLARS FOR THEIR OWN RESEARCH BOEING PARTNERS ON THE PROJECT INCLUDE UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY ENGINE DIVISION AND ROLLSROYCE PLC OF BRITAIN EACH OF THE COMPANIES HOPES TO LEAD IN DEVELOPMENT OF A SINGLEENGINE FIGHTER TO REPLACE LOCKHEED'S CONVENTIONAL F16 WITH AN ADVANCED SHORT TAKEOFF AND VERTICAL LANDING PLANE THAT WOULD BE DEPLOYED AFTER THE TURN OF THE CENTURY MCDONNELL ALREADY IS A COPRODUCER WITH BRITISH AEROSPACE PLC OF THE BRITISHDESIGNED AV8B HARRIER JUMP JET DEPLOYED BY US AND FOREIGN FORCES THAT PLANE ESSENTIALLY REDIRECTS ENGINE EXHAUST DOWNWARD TO DESCEND VERTICALLY FOR LANDING SEATTLEBASED BOEING HAS PROPOSED A SIMILAR APPROACH USING ONLY THE PLANE'S PRIMARY ENGINES FOR HOVERING AND VERTICAL LANDINGS IN ITS DESIGN FOR THE NEW JET FEDERAL OFFICIALS HAD INITIALLY CALLED FOR DESIGNS THAT ALSO USE A LIFT FAN ELSEWHERE ON THE JET FOR VERTICAL MOVEMENT AFTER REJECTING THE BOEING APPROACH AT FIRST PENTAGON RESEARCH OFFICIALS NOW HAVE AGREED TO HELP FUND A ONEYEAR 12 MILLION FIRST PHASE OF RESEARCH WITH AN OPTION FOR A SECOND PHASE VALUED AT ABOUT 20 MILLION THAT WOULD CONTINUE THROUGH EARLY 1996 BOEING IS SOMETIMES SEEN AS A SECONDTIER PLAYER IN MILITARY AIRCRAFT WHILE BEING THE MARKET LEADER IN PRODUCING COMMERCIAL AIRLINERS ITS LATEST TWOENGINE COMMERCIAL JET THE ADVANCED 350SEAT 777 JETLINER WAS OFFICIALLY UNVEILED TO A CROWD OF ABOUT 100000 WORKERS AND SUPPLIERS AT ROLLOUT CEREMONIES SATURDAY THE COMPANY IS A MINORITY PARTNER WITH LOCKHEED IN DEVELOPMENT OF THE THE AIR FORCE'S LARGER NEXTGENERATION F22 AIRSUPERIORITY FIGHTER AND A MAJOR SUBCONTRACTOR ON NORTHROP CORP'S RADARELUDING B2 BOMBER BUT BOEING HASN'T WON A FIGHTER PRIME CONTRACT SINCE WORLD WAR II A COMPANY SPOKESWOMAN SAID BOEING OFFICIALS EMBOLDENED BY THE RENEWED FEDERAL INTEREST IN THEIR DESIGN SAY THE COMPANY HAS THE ENGINEERING AND PRODUCTION SKILLS TO LEAD IN PRODUCTION OF AN ADVANCED MILITARY JET BOEING'S GOING TO BE A BIG PRIME CONTRACTOR SAID RICHARD HARDY CHIEF OF THE COMPANY'S MILITARY AIRPLANE UNIT IN A RECENT INTERVIEW WHEN DEVELOPMENT PHASES ARE COMPLETE IN TWO YEARS HE PREDICTED PENTAGON OFFICIALS WILL LOOK AT THIS AND SAY YOU'VE GOT TO BUILD ONE OR TWO OF THESE JUST TO SEE WHETHER YOU CAN DO IT BOEING CHAIRMAN FRANK SHRONTZ HAS SAID THAT A LOT OF THINGS HAVE TO HAPPEN BEFORE BOEING CAN BE A PRIME CONTRACTOR ON TACTICALAIRCRAFT PROGRAMS GIVEN FEDERAL BUDGET CONSTRAINTS HE SAID IT'S GOING TO BE A LONG TIME BEFORE THAT OPPORTUNITY PRESENTS ITSELF A SPOKESMAN FOR MCDONNELL DOUGLAS DECLINED TO COMMENT ON THE BOEING AWARD AND LOCKHEED'S SPOKESMAN COULDN'T BE REACHED BUT ONE MANAGER AT A RIVAL MANUFACTURER SAID THAT BOEING'S DESIGN GOALS ARE SO AGGRESSIVE THAT IF THE PLANE SUCCEEDS I'D QUIT AND GO TO WORK FOR THEM MICKEY MICHELLICH MANAGER OF ADVANCED TACTICALAIRCRAFT PROGRAMS FOR BOEING DECLINED TO COMMENT ON REPORTS THAT THE COMPANY'S DESIGN CALLS FOR AN EXTRAORDINARILY MANEUVERABLE RADARELUDING LOWWEIGHT JET WITH A 1000MILE RANGE AND A TOP SPEED OF 13 TIMES THE SPEED OF SOUND ALL FOR A COST ROUGHLY EQUAL TO TODAY'S 30 MILLION PRICE TAG OF A FULLY EQUIPPED F16 HOWEVER HE SAID INNOVATIVE AND LOWCOST TECHNIQUES FOR DESIGN TOOLING AND PRODUCTION ARE WHAT WE'RE REALLY FOCUSING ON 9404110117 940411 TECHNOLOGY PATENT COMMISSIONER OUTLINES STEPS TO HELP AVOID DISPUTES OVER SOFTWARE BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL THE COMMISSIONER OF THE US PATENT AND TRADEMARK OFFICE RESPONDING TO A FLOOD OF COMPLAINTS ABOUT THE WAY PATENTS ARE AWARDED FOR COMPUTER SOFTWARE OUTLINED STEPS TO MAKE THE SOFTWARE PATENT SYSTEM WORKABLE SO THAT IT TAKES YOU TO THE BANK AND NOT THE COURTHOUSE BRUCE LEHMAN A VETERAN PATENT ATTORNEY WHO TOOK OVER THE PATENT OFFICE LAST SUMMER SAID HE FAVORS PUBLICIZING PATENT APPLICATIONS WHICH NOW ARE REVIEWED BY THE GOVERNMENT IN STRICT SECRECY PUBLICIZING THE APPLICATIONS HE SAID IN AN INTERVIEW WOULD GIVE KNOWLEDGEABLE OBSERVERS THE OPPORTUNITY TO COME FORWARD WITH DISSENTING PRIOR ART OR EVIDENCE THAT COULD SHOW THE CLAIM TO BE INVALID TO EARN A PATENT AN INVENTION MUST BE BOTH NOVEL AND NOT ALREADY IN WIDE USE EXAMINERS EMPLOYED BY THE GOVERNMENT ARE USUALLY SPECIALISTS IN CERTAIN TECHNICAL FIELDS THEY DECIDE WHETHER AN INVENTION DESERVES A PATENT WHICH GIVES ITS HOLDER COMMERCIAL RIGHTS FOR 17 YEARS DISPUTES OVER PATENTS OFTEN END UP IN THE COURTS IN RECENT YEARS SOFTWARE PATENTS HAVE PROVED AMONG THE MOST CONTENTIOUS MR LEHMAN BLAMES THE GOVERNMENT FOR FAILING TO STAY ABREAST OF THE FIELD OF COMPUTER PROGRAMS WHICH ARE INCREASINGLY VALUABLE BECAUSE THEY DEFINE THE POWER AND CHARACTER OF EVERYTHING FROM PERSONAL COMPUTERS TO HOUSEHOLD GADGETS EVEN TODAY THERE ARE NO SOFTWARE SPECIALISTS AMONG THE OFFICE'S EXAMINERS SEVEN SUCH SPECIALISTS ARE TO JOIN THE OFFICE THIS SUMMER ANOTHER POTENTIAL PROBLEM IS THE FACT THAT PATENT EXAMINERS RECEIVE BONUSES BASED ON THE NUMBER OF ADMINISTRATIVE ACTIONS THEY TAKE SO YOU CAN'T BLAME THE EXAMINERS IF THEY DID A RUSH JOB MR LEHMAN SAID BY THIS FALL HE HOPES TO INTRODUCE A NEW BONUS PLAN FOR EXAMINERS ONE THAT DOESN'T OFFER A HIDDEN INCENTIVE TO GLOSS OVER COMPLEXITIES THE PLAN HOWEVER IS SUBJECT TO APPROVAL BY THE EXAMINERS' UNION THE PATENT OFFICE IS COUNTING ON MORE INFORMATION FROM THE SOFTWARE INDUSTRY TO PRODUCE MORE DURABLE PATENT AWARDS BECAUSE SOFTWARE IS SUCH A RAPIDLY CHANGING FIELD AND SOFTWARE COMPANIES GENERALLY KEEP THEIR TECHNIQUES AND INNOVATIONS TO THEMSELVES THE PUBLISHED SCIENTIFIC AND TECHNICAL PAPERS THAT GUIDE EXAMINERS WHEN THEY REVIEW OTHER FIELDS ARE LARGELY ABSENT FOR COMPUTER PROGRAMS MR LEHMAN OBSERVED TO HELP FILL THIS INFORMATION GAP PATENT EXAMINERS LAST MONTH BEGAN TAPPING INTO A DATABASE ON SOFTWARE COMPILED BY THE SOFTWARE PATENT INSTITUTE AN INDUSTRYSUPPORTED CLEARINGHOUSE AT THE UNIVERSITY OF MICHIGAN BETTERTRAINED EXAMINERS AND MORE DATA WILL HELP INSURE AGAINST ISSUANCE OF ILLCONCEIVED PATENTS IN THE FUTURE TODAY HOWEVER SOFTWARE MAKERS GROAN UNDER THE WEIGHT OF HUNDREDS OF DUBIOUS PATENTS AWARDED IN RECENT YEARS MAKING IT HARD TO KNOW WHEN THEY'RE INFRINGING ON RIVAL TERRITORY LAST MONTH THE PATENT OFFICE TOOK THE FIRST STEP TOWARD OVERTURNING PERHAPS THE MOST NOTORIOUS SOFTWARE PATENT WHICH COVERED A COMMON WAY OF MIXING SOUND VIDEO AND TEXT THE PATENT WAS AWARDED LAST YEAR TO A SUBSIDIARY OF THE TRIBUNE CO EVEN THOUGH THE TECHNIQUE WAS CONSIDERED OBVIOUS AND IN WIDE USE A FEW MONTHS AGO MR LEHMAN REOPENED REVIEW OF THE AWARD INVITING DISSENTERS TO SUPPLY THE PATENT OFFICE WITH PRIOR ART TO DETERMINE THE PATENT'S LEGITIMACY ADMITTING THAT HIS PROPOSED REFORMS DON'T AMOUNT TO A PANACEA MR LEHMAN SAID HE WOULDN'T RULE OUT THE POSSIBILITY OF USING HIS AUTHORITY TO REEXAMINE OTHER ILLADVISED PATENT AWARDS THE COMMISSIONER MAY SOON GET HIS CHANCE SOFTWARE MAKERS ARE STARTING TO COMPLAIN ABOUT A BROAD PATENT COVERING THE WAY AN ADVERTISEMENT CAN BE SPLICED INTO A COMPUTER PROGRAM AND DISPLAYED ON SCREEN THE PATENT AWARDED TWO YEARS AGO TO TWO CALIFORNIA INVENTORS SEEMS TO COVER AN OBVIOUS AND LONGSTANDING SOFTWARE TECHNIQUE IT IS RAISING HACKLES NOW BECAUSE ITS OWNERS RECENTLY BEGAN SEEKING ROYALTY PAYMENTS FROM COMPANIES WHO HAVE BLENDED ADVERTISEMENTS INTO COMPUTER PROGRAMS A SPOKESWOMAN FOR MR LEHMAN SAID HE IS AWARE OF THE DISPUTED PATENT AND HIS OFFICE IS LOOKING AT IT LOUIS KNOBBE A NEWPORT BEACH CALIF ATTORNEY FOR THE PATENT HOLDERS SAID HE HAS SEEN NOTHING SO FAR THAT WOULD INVALIDATE THE PATENT MR KNOBBE SAID THAT THE PATENT COMMISSIONER MAY OPEN UP A FLOODGATE OF REEXAMINATION BY CALLING INTO QUESTION ALREADY AWARDED PATENTS HOWEVER POORLY CONCEIVED PATENTS CAN WREAK INDUSTRY HAVOC AND MR LEHMAN SOUNDS DETERMINED TO PREVENT PATENTINSPIRED CHAOS IN THE SOFTWARE FIELD I'M NOT GOING TO LET PEOPLE SNEAK PATENTS THROUGH THIS OFFICE THAT SHOULDN'T BE ISSUED HE SAID 9404110116 940411 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EUROPEAN UNION FINANCE MINISTERS BACKED CONSTRUCTION OF A HIGHSPEED RAIL NETWORK FINAL CLEARANCE COULD COME AT A JUNE MEETING OF EU LEADERS ONE PROPOSED TRAIN ROUTE WOULD RUN FROM FRANCE THROUGH GERMANY TO WARSAW A SECOND WOULD EXTEND FROM MILAN THROUGH AUSTRIA AND GERMANY TO WARSAW TWO OTHERS WOULD CONNECT MADRID AND BARCELONA SPAIN WITH SOUTHERN FRANCE AND LONDON WITH THE ENGLISH CHANNEL TUNNEL LINK TO FRANCE COSTS WEREN'T SPECIFIED THOUGH THE OUTLAY FOR THE ALPINE SECTION ACROSS THE BRENNER PASS ON THE ITALIANAUSTRIAN BORDER WAS ESTIMATED AT 135 BILLION THE RAIL LINES ARE AMONG ABOUT A DOZEN ENERGY TELECOMMUNICATIONS AND TRANSPORTATION PROJECTS THE 12NATION TRADE BLOC IS CONSIDERING FOR A RECOMMENDED 451 BILLION IN FINANCING MINISTERS ALSO SUPPORTED BUILDING ROADS FROM VALLADOLID SPAIN TO LISBON AND FROM GREECE TO BULGARIA AND TO TURKEY THE WORK TO START WITHIN TWO YEARS WOULD HELP CUT RECORDHIGH UNEMPLOYMENT IN THE EU INDIA'S FINANCIAL SECTOR WAS MOSTLY SHUT DOWN FRIDAY BY A STRIKE OF 15 MILLION BANK AND INSURANCE INDUSTRY EMPLOYEES THE WALKOUT WAS CALLED BY ABOUT 20 UNIONS AND LABOR ASSOCIATIONS OPPOSED TO GOVERNMENT ECONOMIC REFORMS PROVIDING FOR PRIVATE COMPETITION FOR NATIONALIZED OVERSTAFFED BANKS BANK EMPLOYEES DEMONSTRATED IN BOMBAY THE COUNTRY'S COMMERCIAL CAPITAL DEALINGS WERE MINIMAL IN INDIA'S MONEY AND FOREIGNEXCHANGE MARKETS AND CLEARING OF CHECKS TOTALING ABOUT 320 MILLION WAS HELD UP AS CENTRALBANK EMPLOYEES JOINED THE ONEDAY STOPPAGE POPE JOHN PAUL II FORMALLY OPENED THE RESTORED SISTINE CHAPEL FOLLOWING A CONTROVERSIAL 14YEAR CLEANING AND BRIGHTENING OF MICHELANGELO'S THE LAST JUDGMENT THE 4 MILLION RESTORATION WAS PAID FOR BY THE JAPANESE NIPPON TELEVISION NETWORK WHICH ALSO PAID 7 MILLION FOR THREEYEAR REPRODUCTION AND FILM RIGHTS MICHELANGELO PAINTED THE CHAPEL IN TWO PERIODS BETWEEN 1508 AND 1541 THE FRESCOES DEPICT THE RENNAISSANCE MASTER'S VISION OF HUMANITY'S FINAL MOMENTS SOME OF THE BREECHES AND VEILS PAINTED ON NUDES SOON AFTER THE ARTIST'S DEATH WERE LEFT INTACT TO DOCUMENT COUNTERREFORMATION RULES OF DECORUM FOR RELIGIOUS ART THE BRAZILIAN GOVERNMENT ALLOWED FINANCIAL INSTITUTIONS TO USE THE REAL VALUE UNIT KNOWN AS THE URV TO MAKE CUSTOMER TRANSACTIONS EASIER IN A TRANSITION TO A NEW CURRENCY THE URV ON PAR WITH THE US DOLLAR WAS UNVEILED MARCH 1 IN AN ECONOMIC STABILIZATION PLAN IT REPLACED INDEXES FOR SETTING WAGES PRICES TAXES CONTRACTS AND INTEREST RATES INDEXING HAD BEEN DESIGNED TO HELP COPE WITH INFLATION THE CRUZEIRO REAL CURRENCY WHICH IS DEVALUED 19 DAILY TO COMPENSATE FOR A 43 MONTHLY INFLATION RATE IS EVENTUALLY TO BE REPLACED BY A RENAMED URV THE MALAYSIAN GOVERNMENT EXPECTS TO SPEND 603 BILLION TO DEVELOP ITS TELECOMMUNICATIONS INDUSTRY THROUGH 1997 UNDER A PROGRAM TO FURTHER THE COUNTRY'S ECONOMIC TRANSFORMATION MALAYSIA HOPES TO ENSURE STEADY GROWTH IN THE SECTOR THROUGH SUSTAINED INVESTMENT IN RESEARCH AND DEVELOPMENT CITING INCREASING DEMAND FOR TELECOMMUNICATIONS SERVICES THE GOVERNMENT IS ENCOURAGING JOINTVENTURE PROJECTS WITH MULTINATIONAL MANUFACTURERS TO PRODUCE OR ASSEMBLE TELECOMMUNICATIONS EQUIPMENT IN MALAYSIA SETTING THE PACE TELECOM MALAYSIA IS INVESTING 2492 MILLION IN ITS DOMESTIC NETWORK 595 MILLION IN ITS INTERNATIONAL NETWORK AND 632 MILLION IN RURAL TELECOMMUNICATIONS DEVELOPMENT POLAND APPLIED TO JOIN THE EUROPEAN UNION IT IS THE SECOND FORMER EAST BLOC COUNTRY AFTER HUNGARY TO SEEK MEMBERSHIP IN THE TRADE BLOC A PAIR OF QUEEN VICTORIA'S MONOGRAMMED BLACK SILK STOCKINGS SOLD FOR 1657 AT A SOTHEBY'S AUCTION IN LONDON TO A BRITON WHO WILL DISPLAY THEM AT HIS INN IN CAULDON ENGLAND THOUGH VICTORIA'S REIGN ENDED IN 1901 SOTHEBY'S SAID ITEMS OF HER CLOTHING SUCH AS UNDERGARMENTS AND NIGHTGOWNS TURN UP OFTEN 9404110115 940411 WHO'S NEWS MCI BOOSTS TAYLOR'S RESPONSIBILITY IN UNIT FOLLOWING RESHUFFLE WASHINGTON MCI COMMUNICATIONS CORP NAMED ITS NO 2 EXECUTIVE GERALD H TAYLOR TO THE ADDITIONAL POSITIONS OF PRESIDENT AND CHIEF OPERATING OFFICER OF ITS MCI TELECOMMUNICATIONS CORP UNIT THE UNIT IS RESPONSIBLE FOR THE LONGDISTANCE CARRIER'S WORLDWIDE OPERATIONS MR TAYLOR 52 YEARS OLD WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT AND GROUP EXECUTIVE OF MCI COMMUNICATIONS SERVICES WHICH INCLUDES US OPERATIONS AND THE LONGDISTANCE BUSINESS AND CONTRIBUTES 90 OF MCI'S REVENUE THE PROMOTION ESSENTIALLY ASSEMBLES MCI'S BUSINESSES AND STRATEGIC ALLIANCES UNDER A SINGLE ORGANIZATION MCI WITH NEARLY 12 BILLION IN REVENUE IS THE NATION'S SECONDLARGEST LONGDISTANCE SERVICE PROVIDER THE LATEST MOVE FOLLOWS A RESHUFFLING OF MCI'S SENIOR MANAGEMENT IN SEPTEMBER BY CHAIRMAN AND CHIEF EXECUTIVE BERT C ROBERTS JR FOLLOWING THE COMPANY'S ALLIANCE WITH BRITISH TELECOMMUNICATIONS PLC UNDER THOSE CHANGES MCI HAD EXPANDED THE DUTIES OF A HANDFUL OF EXECUTIVES NOTABLY MR TAYLOR'S MCI ALSO GAVE ADDITIONAL RESPONSIBILITIES TO EUGENE EIDENBERG EXECUTIVE VICE PRESIDENT AND GROUP EXECUTIVE TO INCLUDE OVERSIGHT OF MCI METRO THE LOCAL TELECOMMUNICATIONS UNIT AND CORPORATE REGULATORY AND PUBLIC POLICY MATTERS 9404110114 940411 PHARMACY TRADE GROUP CREATES FIRM TO COMPETE FOR PRESCRIPTIONDRUG PLANS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL A PHARMACY TRADE ASSOCIATION HAS FORMED A COMPANY IN AN EFFORT TO PULL TOGETHER THE NATION'S CHAIN AND INDEPENDENT DRUGSTORES TO COMPETE FOR THE RAPIDLY GROWING BUSINESS OF MANAGING PRESCRIPTIONDRUG PROGRAMS FOR EMPLOYERS' HEALTHCARE PLANS USING SEED MONEY PROVIDED BY SOME OF THE LARGEST CHAIN DRUGSTORES THE NATIONAL ASSOCIATION OF CHAIN DRUG STORES IN ALEXANDRIA VA HAS FORMED A COMPANY CALLED PHARMACY DIRECT NETWORK TO COMPETE WITH MERCK & CO'S MEDCO CONTAINMENT SERVICES MCKESSON CORP'S PCS HEALTH SYSTEMS INC AND OTHERS LIKE ITS RIVALS THE NEW NETWORK WILL BID FOR CONTRACTS FROM EMPLOYERS AND INSURANCE COMPANIES TO PROCESS DRUG CLAIMS AND DEVELOP WAYS TO CONTAIN PRESCRIPTIONDRUG COSTS SUCH AS NEGOTIATING DISCOUNTS FROM DRUG MANUFACTURERS AND LIKE MEDCO AND PCS THE NETWORK WILL BE LINKED ELECTRONICALLY TO PHARMACIES THE MOVE IS THE LATEST TWIST IN THE HEALTHCARE INDUSTRY'S RESTRUCTURING WHICH IS FORCING TRADITIONAL PROVIDERS SUCH AS PHARMACISTS TO FIND MORE EFFECTIVE WAYS TO COMPETE PHARMACISTS HAVE BEEN STRUGGLING WITH THE GROWING CONTROL OF MANAGED CARE OVER THEIR BUSINESS THEIR MARGINS HAVE BEEN SQUEEZED BY BENEFITMANAGEMENT COMPANIES SUCH AS MEDCO AND PCS THAT DEMAND DISCOUNTS FROM THE PHARMACIES IN RETURN FOR INCLUSION IN THEIR NETWORKS THE NEW NETWORK IS SOMETHING THAT HAS SPARKED THE IMAGINATION OF COMMUNITY PHARMACISTS WHO SEE THIS AS AN OPPORTUNITY TO REGAIN CONTROL OF THEIR DESTINIES ONE TRADEASSOCIATION OFFICIAL SAID EACH OF THE 24 DRUGSTORE CHAINS REPRESENTED ON THE TRADE ASSOCIATION'S BOARD CONTRIBUTED A TOTAL OF MORE THAN 200000 TO START PHARMACY DIRECT NETWORK OFFICIALS SAID THEY INCLUDE THRIFT DRUG INC PATHMARK RITE AID CORP REVCO DS INC PAY LESS DRUG STORES CVS AND WALGREEN CO NEXT WEEK THE NEW NETWORK WILL FORMALLY INVITE EACH OF THE NATION'S 60000 RETAIL PHARMACIES IN CHAIN AND INDEPENDENT DRUGSTORES TO JOIN THE NEW NETWORK WILL BE OWNED BY ITS MEMBERSHIP THE TRADEASSOCIATION OFFICIALS SAID THAT BASED ON INITIAL INDICATIONS THEY EXPECT TO RAISE 9 MILLION TO 12 MILLION IN CHARTERMEMBERSHIP DUES FROM 30000 TO 40000 PHARMACIES THE NETWORK SHOULD BE BIDDING FOR 1995 CONTRACTS FROM EMPLOYERS AND INSURANCE COMPANIES BY THE SUMMER THEY ADDED A MERCK SPOKESWOMAN SAID THE COMPANY WELCOMED THE NEW NETWORK BECAUSE MORE COMPETITION ULTIMATELY MEANS INNOVATIVE SOLUTIONS TO HEALTHCARE PROBLEMS BUT DAVID TECKMAN SENIOR VICE PRESIDENT OF SALES AT MCKESSON'S PCS SAID THERE ARE SO MANY DRUG BENEFITMANAGEMENT COMPANIES ALREADY IN THE MARKET THAT A NEW PLAYER WOULD HAVE DIFFICULTY GAINING A SUBSTANTIAL MARKET SHARE MOREOVER THE NEW NETWORK WOULDN'T OFFER ANY ADVANTAGES OVER PCS'S NETWORK HE CONTENDED TRADE ASSOCIATION OFFICIALS HOWEVER SAID THE NEW NETWORK'S BIG ADVANTAGE IS THAT PHARMACIES ARE MORE LIKELY TO BE ACTIVELY INVOLVED IN THE HEALTH PLANS' PROGRAMS TO CUT COSTS AND IMPROVE CARE BECAUSE THEY WILL OWN THE NETWORK ONE TRADEASSOCIATION OFFICIAL ADDED THAT PHARMACISTS DON'T THINK THIRDPARTY BROKERS SUCH AS MEDCO OR PCS HAVE THEIR INTERESTS AT HEART THE OFFICIALS ALSO SAID THE NEW NETWORK WILL BE ABLE TO BID COMPETITIVELY BECAUSE IT DOESN'T HAVE TO PAY PROFITS TO SHAREHOLDERS OR PARENT COMPANIES THE NETWORK WILL PAY PHARMACISTS TO HELP HEALTH PLANS MEET COSTCONTAINMENT GOALS THROUGH USE OF CHEAPER GENERIC DRUGS AND BY STICKING WITH THE NETWORK'S FORMULARY A FORMULARY IS A LIST OF PREFERRED DRUGS CREATED BY MANAGEDCARE ORGANIZATIONS TO CONTROL COSTS PHARMACEUTICAL COMPANIES COMPETE FOR PREFERRED STATUS ON A FORMULARY USUALLY BY OFFERING DISCOUNTS OR PROOF THAT ITS DRUG IS BETTER AT REDUCING OTHER HEALTHCARE COSTS SUCH AS HOSPITALIZATION THE TRADEASSOCIATION OFFICIALS SAID PHARMACEUTICAL COMPANIES HAVE INDICATED THEY ARE EAGER TO WORK WITH THE NEW NETWORK IN PART AS A WAY TO COMPETE AGAINST MERCKMEDCO THE COMPANIES WOULD PROVIDE DISCOUNTS AND HELP WITH DEVELOPING ECONOMIC RESEARCH SAMPLING PROGRAMS AND SPECIAL DISTRIBUTION AND PATIENTCARE SYSTEMS ACCORDING TO THE OFFICIALS DESPITE RETAIL PHARMACISTS' PAST VOCIFEROUS OBJECTIONS TO MAILORDER COMPETITORS THE NEW NETWORK WILL ALSO OFFER MAILORDER SERVICES THE TRADE ASSOCIATION OFFICIALS SAID BUT IT WILL SEEK WAYS TO MEET HEALTH PLANS' OBJECTIVES OF LOWER PRESCRIPTION DRUG COSTS THROUGH RETAIL PHARMACIES FIRST UNLIKE MAILORDER OPERATIONS THEY SAID THE RETAIL PHARMACIST IS IN A BETTER POSITION TO INTERACT DIRECTLY WITH THE PATIENTS AND ENSURE THEY ARE TAKING THEIR MEDICATIONS PROPERLY WHICH SHOULD LOWER THE PLANS' OVERALL HEALTHCARE COSTS THE TRADE ASSOCIATION OFFICIALS SAID THEY HAVE STRUCTURED THE NEW NETWORK TO AVOID ANTITRUST PROBLEMS THE DRUGSTORES ARE FREE TO WORK WITH MEDCO PCS AND OTHER MANAGEDCARE COMPANIES AS THEY DO NOW THEY SAID AND THE NEW NETWORK WILL COMPETE WITH THE MANAGEDCARE UNITS STARTED BY SOME DRUG CHAINS SUCH AS THRIFT THEY NOTED THE NEW NETWORK WILL GO AFTER THE BIG NATIONAL ACCOUNTS WITH LARGE EMPLOYERS AND INSURANCE COMPANIES THE OFFICIALS SAID THE NEW COMPANY ALSO DOESN'T CHANGE THE DRUGSTORE INDUSTRY'S COMPLAINT THAT DRUG COMPANIES ENGAGE IN DISCRIMINATORY PRICING BY GIVING MANAGEDCARE BUYERS DISCOUNTS THAT AREN'T AVAILABLE TO MOST RETAIL PHARMACISTS A TRADE ASSOCIATION OFFICIAL SAID SOME DRUGSTORES HAVE SUED SOME DRUG COMPANIES TO GAIN ACCESS TO THE DISCOUNTS THROUGH THE NEW NETWORK THE PHARMACISTS WILL HAVE ACCESS TO SOME OF THOSE DISCOUNTS HE NOTED THE DISCOUNTS ARE DELIVERED IN THE FORM OF REBATES WHICH DRUG BENEFIT MANAGEMENT COMPANIES TYPICALLY SPLIT WITH EMPLOYERS THE NEW NETWORK WILL PAY SOME OF THE REBATE MONEY TO PHARMACISTS AS INCENTIVES TO MEET PERFORMANCE GOALS BUT THE DRUGSTORES WILL STILL NEGOTIATE THEIR DRUG COSTS INDEPENDENTLY 9404110113 940411 THREE ASKIN PARTNERSHIPS SEEK CHAPTER 11 STATUS NEW YORK THREE PRIVATE INVESTMENT PARTNERSHIPS MANAGED BY DAVID ASKIN FILED FOR BANKRUPTCYLAW PROTECTION IN FEDERAL BANKRUPTCY COURT HERE LAST WEEK THE FILING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE BY MR ASKIN WILL STAY LAWSUITS ALREADY FILED AGAINST THE THREE HEDGE FUNDS GRANITE PARTNERS LP GRANITE CORP AND QUARTZ HEDGE FUND LAST WEEK KIDDER PEABODY & CO AND LEHMAN BROTHERS INC BOTH CREDITORS OF THE PARTNERSHIPS SUED FUNDS MANAGED BY MR ASKIN IN STATE SUPREME COURT IN MANHATTAN KIDDER SUED TO RECOVER 255 MILLION AND LEHMAN SUED FOR 65 MILLION MR ASKIN HAD LEVERAGED THE PARTNERSHIPS' HOLDINGS OF VOLATILE MORTGAGEBACKED SECURITIES WITH BORROWINGS FROM SECURITIES FIRMS WHEN THE VALUE OF THOSE SECURITIES FELL THE BROKERAGE FIRMS REPOSSESSED THE SECURITIES IN LATE MARCH GRANITE AN OFFSHORE FUND LISTED ASSETS OF 940 MILLION AND LIABILITIES OF 718 MILLION AS OF DEC 31 1993 QUARTZ LISTED ASSETS OF 144 MILLION AND LIABILITIES OF 108 MILLION AS OF JAN 31 1994 GRANITE PARTNERS DIDN'T DISCLOSE ASSETS OR LIABILITIES 9404110112 940411 INTERNATIONAL JUDGE FREES ONE SUSPECT IN COLOSIO ASSASSINATION MEXICO CITY REUTER THE JUDGE PRESIDING OVER INVESTIGATIONS INTO THE SLAYING OF MEXICAN PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO YESTERDAY ORDERED ONE SUSPECT FREED FOR LACK OF EVIDENCE AND ISSUED FORMAL IMPRISONMENT ORDERS AGAINST TWO OTHERS JUDGE ALEJANDRO SOSA SAID HE HAD ORDERED THE RELEASE OF RODOLFO RIVAPALACIO A FORMER POLICE OFFICER WHO ORGANIZED A SECURITY DETAIL FOR MR COLOSIO IN TIJUANA THE DAY OF HIS DEATH AFTER FINDING INSUFFICIENT GROUNDS TO JAIL HIM ON CHARGES OF CRIMINAL ASSOCIATION SEVERAL MEMBERS OF THE SECURITY DETAIL HAVE BEEN ACCUSED OF TAKING PART IN THE MARCH 23 SLAYING SPECIAL PROSECUTOR MIGUEL MONTES HAS SAID THAT AT LEAST SEVEN PEOPLE TOOK PART IN A CONSPIRACY TO KILL MR COLOSIO ALTHOUGH HE HAS YET TO SUPPLY A MOTIVE MR MONTES SAID SUSPICION FELL ON MR RIVAPALACIO A MEMBER OF THE RULING INSTITUTIONAL REVOLUTIONARY PARTY BECAUSE HE ORGANIZED THE SECURITY TEAM HE DOESN'T APPEAR IN VIDEO OR PHOTOGRAPHIC EVIDENCE MR SOSA SAID HE ALSO THREW OUT CHARGES OF CRIMINAL ASSOCIATION AGAINST ALL THE SUSPECTS IN THE ASSASSINATION BUT HE ORDERED THE FORMAL IMPRISONMENT OF FORMER POLICEMAN VICENTE MAYORAL VALENZUELA AND HIS SON RODOLFO MAYORAL ESQUER ON CHARGES OF AIDING AND ABETTING THE MURDER OF THE SEVEN PEOPLE MR MONTES SAID TOOK PART IN THE CONSPIRACY FOUR ARE NOW IN PRISON ONE HAS BEEN ORDERED FREED A SIXTH MAN HAS BEEN QUESTIONED BY POLICE AND THE IDENTITY AND WHEREABOUTS OF A SEVENTH ARE UNKNOWN 9404110111 940411 LEISURE & ARTS BOOKSHELF CHANGE YOUR DIET AND SAVE YOUR SOUL BY JOE QUEENAN NEVER TRUST A TV EVANGELIST UNLESS HE CAN DO SEVENTYFIVE PUSHUPS CAUTIONS HARRY MILLROY THE EXTREMELY HEALTHCONSCIOUS PROTAGONIST OF PAUL THEROUX'S MESMERIZINGLY WEIRD NEW NOVEL MILLROY THE MAGICIAN RANDOM HOUSE 437 PAGES 24 IF HE'S UNHEALTHY HE'S A HYPOCRITE NEVER MIND WHO THIS EDICT IS PROMULGATED BY MILLROY TOWARD THE END OF THE NOVEL LONG AFTER HE HAS PULLED OFF AN UNUSUAL CAREER MOVE FROM BLADESWALLOWING CARNIVAL ACT TO TV EVANGELIST MILLROY ACHIEVES THIS IMPROBABLE ASCENT BY CLAIMING TO BE IN CONTROL OF NINE SEPARATE BODILY FUNCTIONS AND BY ADHERING TO A SPECTACULARLY ONEDIMENSIONAL MESSAGE IF YOU WANT TO SAVE YOUR IMMORTAL SOUL CHANGE YOUR DIET EATING RIGHT IS A FORM OF WORSHIP HE DECLARES THE ROAD TO PARADISE LEADS DIRECTLY THROUGH YOUR GUT HE PREACHES TAPPING INTO THE AMERICAN OBSESSION WITH DIET AND HEALTH FADS WAS JESUS UNDER THE WEATHER HE ASKS DOES THE BOOK EVER SPEAK OF JESUS COUGHING OR BEING AFFLICTED BY GAS OR HAVING PNEUMONIA WAS THE SAVIOR EVER SICK THINK ABOUT IT ONE OF MR THEROUX'S LOOPIEST HEROES MILLROY IS A DIRECT LITERARY DESCENDANT OF THE MISANTHROPIC FATHER IN MOSQUITO COAST WHO DRAGS HIS WIFE AND CHILDREN OFF TO A JUNGLE UTOPIA IN CENTRAL AMERICA BUT ENDS UP BEING TORN TO PIECES BY VULTURES AS HIS BEWILDERED BUT NOT ENTIRELY SURPRISED FAMILY LOOKS ON LIKE HIM MILLROY IS GIVEN TO TURGID UNOCCASIONED PRONOUNCEMENTS I EAT NOTHING WITH A FACE NOTHING WITH LEGS I EAT NOTHING WITH A MOTHER BUT HAPPILY FOR THE READER MILLROY THE MAGICIAN HAS A SOMEWHAT LESS GRUESOME DENOUEMENT THAN ITS ANTISOCIAL CENTRAL AMERICAN FORERUNNER IN FACT STRIPPED OF ITS MESSIANIC THEME AND ITS OBVIOUS NODS TO ANIMAL FARM ELMER GANTRY LOST HORIZONS AND EVEN GULLIVER'S TRAVELS MILLROY THE MAGICIAN CAN ACTUALLY BE READ AS A LOVE STORY OF SORTS THIS PARTICULAR LOVE STORY CONCERNS AN IMPRESSIONABLE YOUNG GIRL THE NARRATOR OF THE STORY WHO FALLS UNDER THE MAGICIAN'S SPELL THE FIRST TIME SHE SEES HIM SWALLOW FIRE I ALWAYS USE UNLEADED GASOLINE MILLROY REMARKS IN ONE OF THE GREATEST AND ENVIRONMENTALLY SENSITIVE PICKUP LINES OF ALL TIME JILLY FARINA IMMEDIATELY DECIDES TO RUN AWAY FROM HOME AND BECOME HIS ASSISTANT DISGUISING HERSELF AS A BOY SHE STAYS BY HIS SIDE AS HE LANDS HIS FIRST CABLETV SHOW WEATHERS THE STORM WHEN VIEWERS START TO QUESTION THE APPROPRIATENESS OF REFERRING TO BOWEL MOVEMENTS ON A DAYTIME KIDDIE PROGRAM AND PARTICIPATES IN HIS ULTIMATE TRIUMPH AS HE OPENS A CHAIN OF EVANGELICAL DINERS ALL ACROSS THE NATION SERVING SUCH EXOTIC FARE AS JACOB POTTAGE DANIEL LENTILS AND EZEKIEL BREAD FROM THESE DINERS HE ALSO AIRS A WEEKLY TV PROGRAM THAT TEACHES THAT THE BIBLE SHOULD BE LOOKED UPON NOT AS SACRED TEXT BUT AS A DIETARY GUIDE BUT EVENTUALLY THINGS START TO FALL APART FOR THIS ODDBALL EVANGELIST PRANKS SUCH AS PULLING A LIVE RAT OUT OF AN INFIDEL'S MOUTH MERELY RAISE EYEBROWS BUT WHEN A MAN NAMED MORRIE ARKLE SHOWS UP AND SAYS HE WANTS TO TURN THE DINERS INTO A BUNCH OF BUB CITY CRABSHACKS AND MILLROY TRANSFORMS ARKLE INTO A MURKY LIQUID AND THEN DRINKS HIM HE HAS CLEARLY PASSED THE LIMITS OF GOOD TASTE ALTHOUGH PRANKS SUCH AS THIS SO IMPRESS MILLROY'S YOUNG DISCIPLES THAT HE IS REFERRED TO AS THE BOSS OF DISS SUCH ERRATIC BEHAVIOR OFFERS A PERFECT OPPORTUNITY TO HIS ENEMIES IN THE MEDIA THE FASTFOOD BUSINESS AND THE RELIGIOUS COMMUNITY TO POOL THEIR TALENTS AND DESTROY HIM ULTIMATELY THIS CABAL OF NAYSAYERS WREAK HAVOC ON MILLROY'S ZANY JUDEOCHRISTIAN GASTROINTESTINAL EMPIRE FORCING HIM INTO HIDING IN HAWAII THE SITE OF HIS FIRST MIRACLES ONE OF THE REASONS HE HAS TO GO INTO HIDING IS BECAUSE JILLY IS STILL UNDERAGE AND ALTHOUGH THEIR RELATIONSHIP UP UNTIL THIS POINT HAS HAD NO SEXUAL COMPONENT SOCIETY STILL FROWNS ON MESSIANIC MAGICIANS WHO RUN OFF TO HAWAII WITH TEENAGE GIRLS DISGUISED AS BOYS THIS BOOK REALLY IS VERY STRANGE THE MOST AMAZING FEAT THAT MR THEROUX ONE OF AMERICA'S MOST CONTINUALLY ENTERTAINING WRITERS ACHIEVES IN MILLROY IS TO KEEP THE READER FOCUSED FOR HUNDREDS OF PAGES ON AN ANNOYING PROTAGONIST WHO NEVER TALKS ABOUT ANYTHING BUT THE INTIMATE CONNECTION BETWEEN HIS SPIRITUAL LIFE AND THE HEALTH OF HIS INNARDS MR THEROUX ACHIEVES THIS LARGELY WITH HIS SPLENDID EAR FOR DIALOGUE LISTEN TO THIS PASSAGE WHEN A SLEAZEBALL NAMED ED VEAZIE TRIES TO PERSUADE MILLROY TO TURN HIS PRISTINE ENTERPRISE INTO A VULGAR FRANCHISING OPERATION THOUGH THE BOOK IS ON THE FLABBY SIDE ITS VERY GIRTH SEEMS APPROPRIATE FOR THE SUBJECT HOW CAN A NATION OF DIETOBSESSED CHUNKSTERS SAVE THEIR IMMORTAL SOULS HASN'T THERE GOT TO BE SOMETHING SERIOUSLY WRONG IN A COUNTRY WHERE THE POOR PEOPLE ARE FAT AND THE RICH PEOPLE ARE SKINNY MILLROY ASKS 9404110110 940411 AUSTRALIAN ANALYSTS SAY JUMP IN EXPORTS HELPS WINE MAKERS BOOMING OVERSEAS SHIPMENTS OFFSET DOMESTIC SALES SLIP LARGER COMPANIES FAVORED BY DAMIAN MILVERTON SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA WITH A BUMPER GRAPE CROP JUST HARVESTED SOME OF AUSTRALIA'S LISTED WINE COMPANIES ARE BECOMING AS PALATABLE TO ANALYSTS AS THEIR WINES ARE TO INTERNATIONAL TASTE BUDS EXPORTS OF AUSTRALIAN WINE ARE BOOMING JUST IN TIME TO OFFSET A DECLINE IN DOMESTIC SALES AMID A SHIFT TOWARD PREMIUM PRODUCTS ANN DIAMANT AN ANALYST AT SWISS BANK CORP'S SBC AUSTRALIA LTD UNIT AND KIERA GRANT AN ANALYST AT HAMBROS EQUITIES LTD BELIEVE THE LARGER LISTED WINE MAKERS SUCH AS BRL HARDY LTD AND MILDARA BLASS LTD WILL REAP THE GREATEST BENEFITS FROM THE SURGE IN EXPORTS MILDARA BLASS'S MAIN BRANDS ARE WOLF BLASS AND KRONDORF BRL HARDY'S MAIN BRANDS ARE HOUGHTON'S AND SIR JAMES MS DIAMANT AND MS GRANT ALSO FAVOR PETALUMA LTD A SMALLER PRODUCER BECAUSE IT IS FAIRLY SELFSUFFICIENT IN GRAPE SUPPLIES WELLPOSITIONED IN THE PREMIUM END OF THE MARKET AND ATTRACTIVE AS A POSSIBLE TAKEOVER TARGET IN ADDITION TO ITS NAMESAKE BRAND PETALUMA MAKES KNAPPSTEIN AUSTRALIA'S BIGGEST WINE COMPANY SOUTHCORP HOLDINGS LTD HAS SUFFERED ON THE STOCK MARKET BECAUSE OF LOSSES FROM DIVERSIFYING INTO THE PRODUCTION OF HOUSEHOLD WATER HEATERS IN THE US STILL MS GRANT SEES IT AS AN OPPORTUNITY TO BUY SOUTHCORP WHICH SHE SAID BOASTS STRONG CASH FLOW WIDELY RECOGNIZED BRANDS SUCH AS PENFOLDS AND SEPPELTS AND LOW DEBT WINE EXPORTS ARE EXPECTED TO RISE TO 146 MILLION LITERS IN THE YEAR ENDING JUNE 30 FROM 103 MILLION LITERS THE YEAR BEFORE EXPORTS IN 1980 TOTALED 92 MILLION LITERS AUSTRALIAN WINE COMPANIES HAVE BEEN FORCED TO TACKLE FOREIGN MARKETS DOMINATED BY EUROPEAN AND CALIFORNIA WINES BECAUSE OF DECLINING WINE CONSUMPTION AT HOME WHERE A MORE HEALTHCONSCIOUS SOCIETY DRINKS LESS BUT BETTER WINES AND WHERE PREMIUM BOTTLED WINES ARE FAVORED OVER WINE SOLD IN BULK MS DIAMANT BELIEVES THAT ALL AUSTRALIAN WINE COMPANIES WILL BENEFIT FROM THE EXPORT DRIVE BUT THAT ONLY A FEW WILL BE ABLE TO EXPAND PRODUCTION ENOUGH TO REALLY ENJOY ITS FRUITS SOME OF THEM WILL BE MORE SUCCESSFUL THAN OTHERS SHE SAID SHE SAID SHE RECOMMENDS THOSE THAT PRODUCE PREMIUM WINES AND HAVE THE CAPACITY TO EXPAND EXPORTS IN PARTICULAR BRL HARDY AND MILDARA BLASS HAMBROS'S MS GRANT SAID COMPANIES THAT BUY MORE VINEYARDS IN AUSTRALIA'S BEST GROWING AREAS AND TARGET HIGHMARGIN OVERSEAS MARKETS SHOULD SHOW SUBSTANTIAL EARNINGS GROWTH LIFTING THEIR STOCK PRICES CONSEQUENTLY IT WILL BE THOSE WINE COMPANIES WITH STRONGLY ESTABLISHED EXPORT MARKETS DIRECT MARKETING OFFSHORE AND AN ABILITY TO MEET EXPORT DEMANDS WITHOUT A MASSIVE INCREASE IN CAPITAL EXPENDITURE THAT WILL PROSPER MS GRANT SAID IN A NEW STUDY ON AUSTRALIA'S WINE INDUSTRY BOTH MS GRANT AND MS DIAMANT BELIEVE THE LARGER LISTED WINE COMPANIES WILL CONTINUE TO GROW AS THEY HUNT FOR ADDITIONAL GRAPE SUPPLIES THE SMALLER COMPANIES WILL HAVE TO CHOOSE BETWEEN TURNING TO BANKS OR THE STOCK MARKET FOR FUNDS TO GROW OR FACE BEING SWALLOWED BY RIVALS THEY SAID THEY STRONGLY FAVOR MILDARA BLASS BECAUSE IT HAS SECURED EXTRA GRAPEGROWING ACREAGE THE TWO ANALYSTS ARE SLIGHTLY LESS BULLISH ON BRL HARDY BECAUSE OF ITS SLIMMER PROFIT MARGIN YET MS GRANT SAID BRL HARDY'S PUSH TO SELL PREMIUM WINES OVERSEAS ITS STRONG DOMESTIC SALES AND ITS GRAPE SELFSUFFICIENCY WILL UNDERPIN EARNINGS GROWTH 9404110109 940411 LEISURE & ARTS TELEVISION NEW FACES AT ARCHIE'S LIFE IN THE 'HOOD BY ROBERT GOLDBERG THIS WEEK ARCHIE BUNKER'S GRANDSON GOES BACK TO THE OLD QUEENS NEIGHBORHOOD TO SEE THE HOUSE WHERE HE WAS BORN ONLY NOW THERE'S A BLACK FAMILY LIVING IN IT AS HE WALKS IN THE DOOR THEY'RE IN THE MIDDLE OF AN ARGUMENT YOU'RE A BIGOT THE SON IS SHOUTING AT THE FATHER A BLACK MAN CAN'T BE A BIGOT PROCLAIMS THE FATHER TELL THAT TO A KOREAN RETORTS THE YOUNG MAN ARCHIE'S GRANDSON LOOKS AROUND THE LIVING ROOM AND NODS YEAH HE SAYS THIS IS THE HOUSE ALL RIGHT TWENTYTHREE YEARS AFTER ALL IN THE FAMILY NORMAN LEAR IS INDEED TREADING THE SAME REAL ESTATE IN 704 HAUSER STREET CBS MONDAYS 8309 PM EDT AND IN SOME WAYS THE OLD PLACE IS AS AMUSING AS EVER THE FRONT DOOR STILL SLAMS PRETTY WELL AND THE KITCHEN IS STILL THE PLACE PEOPLE GO TO COOL OFF THIS TIME OUT MR LEAR HAS FLIPPED THE COLORS THE GENDERS THE POLITICS BUT THE FLOOR PLAN REMAINS THE SAME AND IT'S AMAZING HOW THE GHOSTS OF THE FORMER TENANTS KEEP RATTLING OFF THE WALLS ACTUALLY IT'S NOT SO AMAZING AT ALL 704 HAUSER IS DESIGNED TO REST ON THE FOUNDATION OF THE EARLIER PROGRAM THE SELFREFERENTIAL IRONY IS BUILTIN AND PART OF THE CHARM THE NEW RESIDENTS ARE THE CUMBERBATCHES A MIDDLECLASS BLACK FAMILY WITH A LOUDMOUTHED OPINIONATED FATHER JOHN AMOS A PEACEMAKING MOTHER LYNNIE GODFREY AND A SERIOUS COLLEGEGOING SON THURGOOD MARSHALL CUMBERBATCH TE RUSSELL ONLY THIS TIME THE FATHER IS A BLEEDINGHEART LIBERAL WHILE THE SON IS A BESPECTACLED NEOCONSERVATIVE THE GREATEST IMPEDIMENT TO THE ADVANCEMENT OF BLACK PEOPLE IS CERTAINLY NOT WHITE PEOPLE HE ANNOUNCES A MAN CAN BE BLACK WITHOUT FEELING LIKE A VICTIM HIS FATHER GIVES HIM AN EXASPERATED LOOK SO WE JUST FEEL LIKE VICTIMS DO WE HE SAYS LABELING HIS BOY UNCLE CLARENCE THOMAS JR THE EXTRA TWIST IS THURGOOD'S GIRLFRIEND CHERLYN MARKOWITZ MAURA TIERNEY WHO IS WHITE AND JEWISH MUCH TO MR CUMBERBATCH'S CHAGRIN WITH ALL THE BEAUTIFUL BLACK WOMEN ON THE PLANET HE SAYS TO HIS SON WITH ALL THE BEAUTIFUL NUBIAN SISTERS YOU COULDN'T FIND ONE TO MEET YOUR NEEDS TWO DECADES AFTER ARCHIE BUNKER MR LEAR IS STILL TRYING TO SHOCK STILL ATTACKING TABOOS SUCH AS INTERRACIAL ROMANCE TO HIS CREDIT HE HAS THE COURAGE TO MENTION THE UNMENTIONABLES BLACK AND WHITE TO BUILD HIS HUMOR AROUND THEM AND TO GIVE A GIFTED COMEDIAN MR AMOS FREE REIN BUT ALONG THE WAY HE SURE CAN BE HEAVYHANDED HOW DO I KNOW I'M NOT JUST ANOTHER BLACK GUY AFTER A WHITE WOMAN AS A KIND OF TROPHY ASKS THURGOOD HOW DO I KNOW I'M NOT JUST ANOTHER WHITE WOMAN AFTER A BLACK STUD SAYS CHERLYN LAUGHS FROM THE LAUGH TRACK AND THE COUPLE STARE AT EACH OTHER LOVINGLY WE ARE SOMETHING ELSE AREN'T WE SHE SIGHS PERHAPS IT'S A SIGN OF AMERICA'S PROGRESS BUT NONE OF THESE MATURE THEMES SEEM SHOCKING ANYMORE POLISHED AND LIKABLE AS 704 HAUSER CAN BE AND IT'S PROBABLY MR LEAR'S BEST SINCE ALL IN THE FAMILY THERE'S NO NEW GROUND BEING BROKEN HERE IT'S JUST ANOTHER SITCOM A LITTLE LIVED IN A LITTLE FADED FAMILY TIES PLUS ALL IN THE FAMILY TIME TO MOVE TO A NEW NEIGHBORHOOD SOUTH CENTRAL LOS ANGELES IS A VERY DIFFERENT 'HOOD AND AFTER THE FIRES AT FLORENCE AND NORMANDIE YOU WOULDN'T EXPECT TO SEE ANY COMEDIES SPRINGING UP THERE WHEN SOUTH CENTRAL FOX TUESDAYS 8830 PM EDT WAS BEING SHOT FOR CBS IN FACT THE EXECUTIVES REPORTEDLY KEPT ASKING FOR MORE LAUGHS BUT THE LAUGHS WEREN'T SO EASY TO FIND IN A DISTRICT WHERE THE UNEMPLOYMENT FIGURES ARE RIVALED ONLY BY THE NUMBER OF GUNSHOT VICTIMS THE PROGRAM KEPT GETTING DARKER UNTIL CBS NERVOUSLY BACKED OUT AND FOX STEPPED IN WHAT SOUTH CENTRAL BRINGS TO THE AIR IS AN INTRIGUING UNEASY COMPROMISE BETWEEN DRAMA AND SITUATION COMEDY THE STORY OF AN UNEMPLOYED SINGLE MOTHER JOAN MOSELY TINA LIFFORD STRUGGLING TO FIND A JOB AND KEEP HER THREE CHILDREN OFF THE STREETS WHERE HER OLDEST BOY WAS KILLED THE HUMOR CAN BE REFRESHINGLY BRACING YOUNG TASHA TASHA SCOTT SAYS NOTHING GETS ME GOING LIKE THE SMELL OF GUNPOWDER IN THE MORNING THEN AGAIN IT CAN BE PURE SITCOM KIDS LAUGHING AT THEIR BROTHER ANDRE LARENZ TATE AS HE SLURPS DOWN HIS CEREAL FROM MOMENT TO MOMENT SOUTH CENTRAL SLIPS IN AND OUT OF THE SITCOM MOLD IT HAS A LAUGH TRACK BUT THE LANGUAGE IS OFTEN SURPRISINGLY HARSH IT HAS THE LOOK OF VIDEO BUT SEGMENTS ARE SHOT ON FILM LIKE DRAMA TO ME SOUTH CENTRAL AS CREATED BY RALPH FARQUHAR AND MICHAEL J WEITHORN IS ODDLY SUBVERSIVE IT OFFERS UP THE STANDARDISSUE FORMULA A HALFHOUR OF YUCKS BUILT AROUND A CENTRAL QUESTION ONLY HERE THE QUESTIONS ARE DIFFERENT WILL THE MOSELY FAMILY DESPERATE FOR CASH ACCEPT A LOAN FROM A NEIGHBORHOOD DRUG DEALER WILL ANDRE BUY HIMSELF A BEEPER SINCE ALL THE COOL KIDS HAVE ONE HIS MOTHER SAYS THAT'S AKIN TO SUICIDE LIKE A SIGN FOR THE POLICE ANNOUNCING I'M YOUNG I'M BLACK I'M STUPID SHOOT ME SHOULD WE LAUGH OR NOT LIKE ANY SITUATION COMEDY THE TROUBLES GET NEATLY WRAPPED UP IN A HALFHOUR BUT UNLIKE MOST SUCH SHOWS BIGGER PROBLEMS LOOM OVERHEAD AND THEY DON'T GO AWAY SOMETIMES SOUTH CENTRAL UNDERCUTS THE GENRE SOMETIMES IT FALLS PREY TO IT SOMETIMES BOTH ANDRE'S FRIEND LAUGHS AT HIM MY OWN MOMMA DON'T EVEN WHUP ME ANDRE NODS IT'S HARD TO DO THAT FROM PRISON SOUTH CENTRAL IS NOT AS POLISHED OR AS CONSISTENTLY FUNNY AS 704 HAUSER BUT IT'S GRITTIER AND TONALLY MUCH MORE INTERESTING FOR ALL ITS FLAWS SOUTH CENTRAL HAS THE POTENTIAL TO BE A LANDMARK SHOW A PROGRAM THAT COMES BY BOTH ITS COMEDY AND ITS DRAMA HONESTLY AFTER THIS THE NETWORKS ARE GOING TO HAVE TO REDISTRICT 9404110108 940411 CORPORATE FOCUS SYNOPTICS WAITS FOR A BOOST FROM NEW TECHNOLOGY IT FACES STIFF COMPETITION ON HUBS SLOW TAKEOFF FOR ATM NETWORKS BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL COMPUTER NETWORKING IS POISED FOR A BIG LEAP BUT CUSTOMERS ARE STILL ON THE LEDGE SO SYNOPTICS COMMUNICATIONS INC FACES A BALANCING ACT THE SANTA CLARA CALIF COMPANY PRACTICALLY INVENTED THE MARKET FOR DEVICES CALLED HUBS WHICH COORDINATE NETWORKS OF PERSONAL COMPUTERS MORE RECENTLY THE COMPANY HAS INVESTED 50 MILLION TO MASTER TECHNOLOGIES ASSOCIATED WITH ATM THE ACRONYM FOR A NEW HIGHTECH LINGUA FRANCA THAT COULD MAKE VIDEO CONFERENCES AS FAMILIAR ON DESKTOP PCS AS ELECTRONIC MAIL BUT MOST USERS WON'T MOVE TO ATM NETWORKS UNTIL 1995 AT THE EARLIEST IN THE MEANTIME SYNOPTICS IS RUNNING INTO STIFF COMPETITION FOR CONVENTIONAL HUBS AND THE COMPANY MUST WORK THROUGH AN INVENTORY GLUT AT ITS DISTRIBUTORS WHICH BOUGHT TOO MANY OF THE COMPANY'S LOWEND HUBS LAST YEAR AND SUBSEQUENTLY SLOWED PURCHASES FROM THE COMPANY AS A RESULT ANALYSTS EXPECT FIRSTQUARTER PROFIT TO BE RELEASED TODAY TO BE DOWN MORE THAN 20 FROM FOURTHQUARTER LEVELS SINCE QUADRUPLING IN 1992 SYNOPTICS' STOCK HAS SAGGED AND IS OFF 26 SINCE THE BEGINNING OF THE YEAR LAGGING BEHIND RIVALS THAT HAVEN'T EXPERIENCED SUCH SHARP BOOMANDBUST CYCLES AND THE POSSIBILITY OF HITTING 1 BILLION IN SALES THIS YEAR A GOAL THAT LOOKED ATTAINABLE LAST SUMMER HAS RECEDED THEY ARE STILL A STRONG COMPETITOR BUT THEY CERTAINLY WEAKENED QUITE SIGNIFICANTLY OVER THE PAST FEW MONTHS SAYS ERIC BENHAMOU CHIEF EXECUTIVE OFFICER OF CROSSTOWN COMPETITOR 3COM CORP MANY COMPANIES WOULD LOVE SYNOPTICS' PROBLEMS OVER THE PAST THREE YEARS THE COMPANY'S PROFITS AND SALES HAVE NEARLY TRIPLED IT MANAGED TO IMPROVE ITS NO 1 SHARE OF THE 24 BILLION HUB MARKET LAST YEAR MOVING TO 31 FROM 25 IN 1992 ACCORDING TO THE MARKET RESEARCH FIRM DATAQUEST INC THE OUTLOOK'S STILL REALLY STRONG FOR AT LEAST TWO MORE YEARS MAYBE LONGER PREDICTS ANDREW LUDWICK SYNOPTICS' CHIEF EXECUTIVE OFFICER BUT MARKET RESEARCH FIRM INTERNATIONAL DATA CORP PREDICTS HUB SALES GROWTH WILL SLOW TO 31 IN 1994 FROM LAST YEAR'S 63 JUMP A SHAKEOUT AMONG MORE THAN 50 HUB MAKERS HAS ALREADY BEGUN SYNOPTICS MUST CAREFULLY ENCOURAGE A LONGTERM TRANSITION TO ATM WHILE MAKING A SERIES OF INCREMENTAL STEPS TO KEEP EXISTING CUSTOMERS HAPPY THE NEXT MAJOR DEVELOPMENT A COMPUTER SWITCHING SYSTEM BASED ON THE POPULAR ETHERNET FORMAT THAT OFFERS A SIZABLE SPEED BOOST WITHOUT THE DISLOCATIONS OF ATM THE COMPANY ALSO MUST RALLY ITS INDEPENDENT DISTRIBUTORS AND RESELLERS TO COUNTER ONE OF THE MOST AGGRESSIVE DIRECTSALES FORCES IN HIGH TECHNOLOGY CABLETRON SYSTEMS INC THE COMPANY'S ARCH RIVAL IN ROCHESTER NH HAS BEEN WINNING CUSTOMERS AND KEY PARTNERS IN RELATED NETWORKING TECHNOLOGIES FASTGROWING CISCO SYSTEMS INC THOUGH STILL A SYNOPTICS COLLABORATOR IS NOW ALIGNED MORE CLOSELY WITH CABLETRON AND EVEN CHOSE ITS HUBS TO RUN NEW BUILDINGS IN NEARBY SAN JOSE CRAIG BENSON CABLETRON'S CHAIRMAN AND CHIEF OPERATING OFFICER ARGUES THAT SYNOPTICS' INDEPENDENT RESELLERS HAVE PROBLEMS TEACHING CUSTOMERS ABOUT NEXTGENERATION HUBS BUT INDEPENDENT RESELLERS HAVE BEEN AN UNSHAKABLE TENET AT THE COMPANY SINCE 1985 WHEN MR LUDWICK ENDED A 17YEAR CAREER AT XEROX CORP TO FOUND THE COMPANY MR LUDWICK 48 YEARS OLD WAS JOINED BY RONALD SCHMIDT A KEY XEROX TECHNOLOGIST WHO IS THE COMPANY'S SENIOR VICE PRESIDENT AND CHIEF TECHNICAL OFFICER HUBS TYPICALLY SIT IN WIRING CLOSETS IN OFFICE BUILDINGS CONTROLLING CONNECTIONS TO A GROUP OF COMPUTERS ON A FLOOR OR IN A DEPARTMENT THEY RANGE FROM STANDALONE BOXES STARTING FOR LESS THAN 1000 TO 80000 CABINETS THAT ARE UPGRADED BY ADDING NEW CIRCUIT BOARDS SALES AND PRICES ARE OFTEN MEASURED BY HUB PORTS THE CONNECTIONS INTO WHICH USERS PLUG COMPUTERS PRINTERS AND OTHER DEVICES SYNOPTICS HAS NOW SHIPPED NEARLY 10 MILLION PORTS FUELING THAT DEMAND MR LUDWICK SAYS IS THE RESTRUCTURING THAT IS RESHAPING LARGE COMPANIES AS THEY SLASH JOBS AND PUSH DECISIONMAKING INTO DECENTRALIZED OFFICES PC NETWORKS BECOME MORE CRUCIAL IN KEEPING MANAGERS INFORMED ATM SHORT FOR ASYNCHRONOUS TRANSFER MODE COULD ACCELERATE THE TREND THE NEW TECHNOLOGY PACKAGES TEXT SOUND AND MOVING PICTURES INTO CONVENIENT CHUNKS OF DATA THAT CAN BE TRANSFERRED EASILY LIKE TELEPHONE SWITCHING SYSTEMS ATM NETWORKS SET UP DEDICATED CHANNELS TO EACH USER EARLIER SYSTEMS SUCH AS ETHERNET AND TOKEN RING WORK LIKE PARTY LINES SLOWING DOWN WHEN MORE COMPUTERS ARE USING A NETWORK OHIO STATE UNIVERSITY'S COMPUTER AND INFORMATION SCIENCES DEPARTMENT HAS PICKED SYNOPTICS' ATM EQUIPMENT FOR ONE OF THE LARGEST ATM INSTALLATIONS TO DATE ALLOWING MORE THAN 400 COMPUTERS TO SWAP DATA VIDEO AND AUDIO AT DUKE UNIVERSITY A LONGTIME CABLETRON STRONGHOLD THE MEDICAL CENTER'S RADIOLOGY DEPARTMENT PLANS TO USE SYNOPTICS ATM GEAR TO TRANSFER COMPUTERIZED XRAYS IN ABOUT A SECOND RATHER THAN THE MINUTE REQUIRED USING ETHERNET ATM IS A DAUNTING JUMP HOWEVER SYNOPTICS' SYSTEM COSTS ABOUT 1495 PER PORT MORE THAN THREE TIMES THE PRICE OF ITS MOST SOPHISTICATED ETHERNETBASED HUB TO EASE THE TRANSITION SYNOPTICS' BIG SYSTEM 5000 HUB WAS ANNOUNCED LAST SEPTEMBER WITH THE ABILITY TO LET USERS MOVE UP GRADUALLY BY PLUGGING IN ATM UPGRADES BUT THAT CIRCUITRY WON'T BE AVAILABLE UNTIL THE SECOND HALF OF 1994 AND SOME RESELLERS SAY CUSTOMERS HELD OFF BUYING THE NEW SYSTEM AS A RESULT SYNOPTICS INSISTS IT HAS ALREADY SOLD SOME 2100 SYSTEM 5000S BUT TAM DELL'ORO A DATAQUEST ANALYST CONTENDS THE MARKETING STRATEGY WAS A FACTOR AS SYNOPTICS' SHARE OF MODULAR HUB PORT SHIPMENTS FELL FROM 268 IN THE FIRST HALF OF 1993 TO 233 IN THE SECOND HALF WHILE CABLETRON MOVED TO 38 FROM 292 AT THE OTHER END OF THE MARKET 3COM HEWLETTPACKARD CO AND OTHERS ARE ADDING MARKET SHARE IN LOWPRICED STACKABLE HUBS THAT NOW ACCOUNT FOR NEARLY 50 OF SYNOPTICS' CURRENT PORT SHIPMENTS WE HAVE A GOOD SHOT AT ACTUALLY PASSING THEM ALTOGETHER IN THE NEXT FEW WEEKS SAYS MR BENHAMOU OF 3COM SYNOPTICS IS RESPONDING WITH MORE INNOVATION LATE THIS MONTH IT WILL HELP PUSH HUB PRICES DOWN EVEN FURTHER WITH AN EIGHTPORT UNIT FOR SMALL OFFICES THAT STARTS AT 399 ALSO IN THE CURRENT QUARTER SYNOPTICS WILL MAKE AN IMPORTANT PUSH INTO SWITCHED ETHERNET A LOWCOST WAY OF SUPERCHARGING THAT TECHNOLOGY BY SETTING UP A DEDICATED CONNECTION TO EACH DESK ANOTHER BIG JUMP ON THE AGENDA DUBBED FAST ETHERNET OFFERS A 10FOLD SPEED BOOST THOUGH IT REQUIRES NEW CIRCUIT BOARDS IN EACH CONNECTED COMPUTER MOST ANALYSTS THINK MR LUDWICK IS ON THE RIGHT TRACK BUT THEY ARE CAUTIOUS ABOUT HIS TIMING THEY ARE TOO STRONG TOO SMART AND TOO LARGE NOT TO ULTIMATELY WORK THROUGH THIS SAYS RICHARD KIMBALL AN ANALYST AT MONTGOMERY SECURITIES I JUST DON'T KNOW WHEN 9404110107 940411 AN ARAB POLL UNPREPARED FOR PEACE BY HILAL KHASHAN THERE IS GOOD REASON TO DOUBT THAT ARAB PUBLIC OPINION IS READY FOR PEACE WITH ISRAEL SURVEY RESEARCH I CONDUCTED AMONG 1000 MUSLIM LEBANESE SYRIANS AND DIASPORA PALESTINIANS ON THE EVE OF THE SIGNING OF THE SEPT 13 1993 AGREEMENT BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION SUGGESTS THAT THE LEADERS ARE VERY FAR AHEAD OF THE MASSES WHEN IT COMES TO CONTEMPLATING PEACE WITH ISRAEL THIS IMPLIES THAT ARAB LEADERS RISK DELEGITIMIZING THEMSELVES PERHAPS DANGEROUSLY SO IF THEY PERSIST WITH CURRENT POLICIES TO BEGIN WITH OF THE RESPONDENTS WHO FAVORED THE PEACE PROCESS NOT ONE SINGLE PERSON GAVE A POSITIVE JUSTIFICATION FOR PEACE WITH ISRAEL RESPONDENTS VARIOUSLY SEE PEACE AS THE ONLY AVAILABLE ALTERNATIVE AT THE PRESENT OR AS A CHANCE TO RECOVER SOME TERRITORY OCCUPIED BY ISRAEL SINCE THE SIX DAY WAR OR AS AN OPPORTUNITY TO PUT A HALT TO ISRAELI AGGRESSION BUT THE MOST POPULAR VIEW SEES THE PEACE AS AN INTERIM MEASURE FOR ARABS TO REORGANIZE THEMSELVES AND STRIKE AT ISRAEL LATER IN ALL MORE THAN 90 OF THOSE WHO SUPPORT PEACE SAY THEY WOULD CEASE TO SUPPORT IT IF ISRAEL WERE WEAKENED IN THE FUTURE THESE RESULTS FORCE US TO CONCLUDE THAT ARABS WHO SUPPORT THE PEACE NEGOTIATIONS SEE THEM LEADING TO A TRUCE NOT TO A LASTING PEACE ALSO REVEALING ARE THE ALTERNATIVES TO DIRECT NEGOTIATIONS THAT ARAB RESPONDENTS OFFER THREEQUARTERS OF THEM CALL FOR IMMEDIATE MILITARY CONFRONTATION AGAINST ISRAEL THE REMAINING ONEFOURTH CALL FOR MAINTAINING THE PRESENT SITUATION OF NO PEACE NO WAR PENDING THE TIME WHEN ARABS CAN ATTAIN THEIR OBJECTIVES THIS PROMPTS TWO COMMENTS WHEN THREEQUARTERS OF THE RESPONDENTS LOOK FORWARD TO WAR IT HARDLY AUGURS WELL FOR THE CAUSE OF TRUE PEACE AND WHEN ARABS CALL FOR MILITARY ACTION AGAINST ISRAEL THEY DEMONSTRATE THEMSELVES TO BE OUT OF TOUCH WITH REALITY IF ARABS COULD NOT DESTROY ISRAEL DURING THE PEAK OF SUPERPOWER POLARITY THEY ARE UNLIKELY TO DO SO IN A TIME OF US PREDOMINANCE FROM THESE DATA I CONCLUDE THAT ARABS EVEN THOSE WHO ADVOCATE IT ARE NOT READY PSYCHOLOGICALLY FOR PEACE VIEWS OF ISRAEL'S LONGTERM PLANS AFTER A PEACE AGREEMENT BEAR OUT THIS CONCLUSION THE RESPONDENTS WORRY MOST THAT PEACE WILL ENABLE ISRAEL TO BECOME THE MIDDLE EAST'S ECONOMIC SUPERPOWER FOLLOWED BY CONCERNS THAT IT WILL TRY TO OBTAIN THE LION'S SHARE OF THE REGION'S WATER RESOURCES AND INSTIGATE SECTARIAN CONFLICT MANY ARABS CHARGE ISRAEL WITH FOMENTING THE LEBANESE CIVIL WAR COMPOUNDING THE KURDISH QUESTION IN NORTHERN IRAQ AND AGGRAVATING THE REBELLION IN SOUTHERN SUDAN THEY PERCEIVE A GRAND ZIONIST SCHEME TO CREATE MINISTATES REPLACING LEBANON SYRIA IRAQ AND EGYPT SUCH SUSPICIONS OF ISRAEL SHOULD BE DYING VESTIGES OF THE ARABISRAELI CONFLICT'S EARLY DAYS THAT THEY REMAIN VIBRANT INDICATES INTELLECTUAL STAGNATION AND POINTS TO A FAILURE TO UNDERSTAND THE COMPLEXITY AND DYNAMISM OF POLITICS THE RESPONDENTS TWOTHIRDS OF WHOM ARE PROFESSIONALS HAVE FALLEN VICTIM TO UNCRITICAL POLITICAL EVALUATIONS THIS STUDY HAS PRODUCED SOBERING RESULTS THE RESPONDENTS SHOW LITTLE UNDERSTANDING OF THE MEANING OF PEACE MUCH LESS AN APPRECIATION OF ITS POSSIBLE BENEFITS QUITE THE CONTRARY THEY SEE PEACE AS SURRENDER AND DISPLAY ATTITUDES THAT SUGGEST THAT THE CONFLICT WITH ISRAEL HAS YET A LONG LIFE AHEAD THE SURVEY FINDINGS POINT TO STRONG ANTIISRAELI SENTIMENTS REMAINING IN ARAB POLITICAL CULTURE THE LEADERSHIP BEARS CONSIDERABLE RESPONSIBILITY FOR THIS STATE OF AFFAIRS SINCE THE EARLY 1920S IT HAS HEAVILY SOCIALIZED THE POPULATIONS TO SUSPECT JEWS HATE ZIONISTS AND THEN TO SEEK THE DESTRUCTION OF THE STATE OF ISRAEL AND WHEN ARAB LEADERS FINALLY CHOSE TO TAKE PART IN PEACE TALKS WITH ISRAEL THEY DID NOT ADEQUATELY PREPARE THEIR PEOPLE FOR WHAT MIGHT ENSUE THEIR PEACE BY STEALTH CONSISTS OF ONE STEP FORWARD TWO STEPS BACKWARD LEADERS ONCE EXAGGERATED THEIR TOUGH STANCE AGAINST ISRAEL NOW THEY UNDERESTIMATE THE IMPLICATIONS OF PEACE ARABS TODAY ARE IN A STATE OF MUTED REBELLION FEELING ABANDONED BY THEIR LEADERS AND BYPASSED BY MODERNITY AND POLITICAL LIBERALIZATION GENUINE PEACE IS NOT IMPROBABLE BUT IT DEMANDS PROFOUND RESOCIALIZATION AMERICANS CAN HELP BY PROMOTING MUTUAL INTERACTION COOPERATION AND UNDERSTANDING SO THAT PEACE EVENTUALLY STANDS ON ITS OWN OTHERWISE THE QUIET THAT PREVAILS IN THE LEVANT THESE DAYS COULD VERY WELL BE A CALM THAT PRECEDES THE STORM MR KHASHAN IS AN ASSOCIATE PROFESSOR OF POLITICAL SCIENCE AT THE AMERICAN UNIVERSITY OF BEIRUT THIS ARTICLE DERIVES FROM A LONGER STUDY IN THE INAUGURAL ISSUE OF THE MIDDLE EAST QUARTERLY 9404110106 940411 FIRST COMMERCIAL TO BUY FIRM LITTLE ROCK ARK FIRST COMMERCIAL CORP SAID IT AGREED TO ACQUIRE CLOSELY HELD UNITED AMERICAN BANCSHARES INC FOR 106 MILLION UNITED AMERICAN OWNS FIRST NATIONAL BANK OF PALESTINE TEXAS 9404110105 940411 ENTERPRISE THRIVING ON QUIRKINESS SOFTWARE FIRM SAVES SCREENS WHILE ENTERTAINING USERS BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL SOME WORKERS ON THE SECOND FLOOR OF BERKELEY SYSTEMS INC'S HEADQUARTERS USE THE STAIRS TO GO DOWN BUT MOST JUST SLITHER DOWN A WINDING PLASTIC SLIDE EVERY COMPANY SHOULD HAVE A SLIDE BUT PEOPLE HERE HAVEN'T FIGURED THE STATIC ELECTRICITY OUT SAYS JOAN BLADES BERKELEY'S COFOUNDER AND MARKETING DIRECTOR YOU CAN CRACKLE ALL THE WAY DOWN ON A HIGHVOLTAGE DAY THIS IS THE SAME SMALL BERKELEY CALIF SOFTWARE COMPANY THAT CREATED THE WINGED TOASTERS THAT FLIT ACROSS MANY COMPUTER MONITORS WHEN THEIR SYSTEMS ARE DORMANT BY CAREFULLY EXPLOITING CONSUMERS' DESIRE FOR MORE DISTINCTIVE AND ENTERTAINING SOFTWARE BERKELEY HAS TURNED WHIMSY INTO A PRIME BUSINESS ASSET OTHER IMAGES BERKELEY HAS BROUGHT TO COMPUTER SCREENS INCLUDE TROPICAL FISH BOUNCING BALLS FLOATING CLOCKS MULTICOLORED KALEIDOSCOPES URBAN SKYLINES MOONSCAPES DISNEY AND STAR TREK CHARACTERS AND COMICSTRIP SUPERHEROES THE COMPANY ALSO SELLS INFLATABLE FLYING TOASTERS TO TRUE AFICIONADOS COMPANIES THAT CAN DESIGN TOOLS THAT WILL HELP PEOPLE PERSONALIZE COMPUTERS AND MAKE THEM ACTUALLY WANT TO USE THEM MORE OFTEN WILL BE SUCCESSFUL IN THE '90S SAYS WESLEY BOYD BERKELEY'S CHIEF EXECUTIVE AND COFOUNDER CERTAINLY THE APPETITE FOR INEXPENSIVE SCREEN SAVER SOFTWARE WHICH PREVENTS TEXT AND OTHER IMAGES FROM BEING BURNED INTO A MONITOR'S SCREEN WHEN THE COMPUTER ISN'T BEING USED SEEMS TO BE GROWING INTERNATIONAL DATA CORP A FRAMINGHAM MASS COMPANY THAT RESEARCHES INFORMATION TECHNOLOGY PREDICTS THE SCREENSAVER MARKET WILL REACH 180 MILLION BY 1997 UP FROM ABOUT 80 MILLION LAST YEAR BERKELEY'S REVENUE LAST YEAR WAS 20 MILLION UP FROM 600000 IN 1988 NEWER COMPUTER MONITORS ARE MUCH MORE RESISTANT TO BURNIN BUT BERKELEY SAYS PEOPLE STILL WANT SCREEN SAVERS FOR ESTHETIC REASONS THE COMPANY ADDS THAT USERS HAVE ALSO COME TO RELY ON THE DEVICES FOR SECURITY PURPOSES WITH THE HELP OF A PASSWORD THE SCREEN SAVER CAN BE LOCKED TO KEEP SENSITIVE COMPUTER MATERIAL FROM PRYING EYES MR BOYD SAYS HE ORIGINALLY DREW EMPLOYEES TO BERKELEY NOT BY PROMISING A POT OF GOLD BUT BY OFFERING THEM A PLACE WHERE THEY COULD LET THEIR IMAGINATIONS RUN WILD YOU NEED TO HAVE AN ENVIRONMENT THAT SUPPORTS CREATIVITY AND ALLOWS PEOPLE NOT TO WORRY ABOUT GETTING SLAPPED DOWN WHEN THEY COME UP WITH A GOOD IDEA HE SAYS THE 33YEAROLD MR BOYD WHO HAS BEEN PROGRAMMING COMPUTERS SINCE HE WAS 12 BEGAN EXPLORING THE IDEA OF STARTING HIS OWN COMPANY IN 1986 ARMED WITH A 50000 GRANT FROM THE NATIONAL INSTITUTES OF HEALTH A FEDERAL RESEARCH AGENCY BASED IN BETHESDA MD HE DEVELOPED A SOFTWARE PRODUCT THAT MADE IT EASIER FOR PEOPLE WITH VISUAL IMPAIRMENTS TO READ A COMPUTER SCREEN WHEN MR BOYD TRIED SELLING THE SOFTWARE DUBBED INLARGE AT TRADE SHOWS DEMAND WAS WEAK BUT THE TECHNOLOGY LED TO ANOTHER PRODUCT STEPPING OUT THAT HELPED DESIGNERS MANIPULATE GRAPHIC ARTS APPLICATIONS WHEN MR BOYD TOOK STEPPING OUT TO TRADE SHOWS IN 1987 IT WAS A BIG SUCCESS AND HE AND HIS WIFE MS BLADES FOUNDED BERKELEY THAT YEAR BERKELEY SOLD STEPPING OUT THROUGH CATALOGS UNTIL MAINSTREAM SOFTWARE DISTRIBUTORS PICKED UP THE PRODUCT FOR RETAIL STORES ANOTHER POPULAR PRODUCT THE COMPANY INTRODUCED IN 1989 OUTSPOKEN ENABLED MACINTOSH COMPUTERS TO SPEAK TO BLIND USERS STEPPING OUT AND OUTSPOKEN PROVIDED BERKELEY WITH A STEADY REVENUE STREAM AND THE COMPANY'S GROWTH MIGHT HAVE ENDED THERE BUT ONE AFTERNOON IN 1989 MR BOYD NOTICED THAT A COLLEAGUE'S SCREEN SAVERS CHANGED PERIODICALLY AT THE TIME ONLY ONE SCREEN SAVER WAS AVAILABLE COMMERCIALLY AND IT COULDN'T ACCOMMODATE MULTIPLE IMAGES MR BOYD QUICKLY TRACKED DOWN JACK EASTMAN THE PROGRAMMER RESPONSIBLE FOR THE SOFTWARE MR EASTMAN WHO WAS THEN WORKING AS A PHYSICIST FOR ANOTHER COMPANY SOLD THE PROGRAM RIGHTS TO BERKELEY AND JOINED THE COMPANY AS ITS ENGINEERING DIRECTOR BERKELEY DEVELOPED 17 SCREENSAVER IMAGES TO ACCOMPANY MR EASTMAN'S PROGRAM MOST OF THEM JUST LIGHTNING BOLTS AND BOUNCING LINES ONE IMAGE HOWEVER WAS DISTINCT INSPIRED BY MR EASTMAN'S NOCTURNAL WANDERINGS AROUND HIS KITCHEN IT JUST POPPED INTO MY HEAD FLYING TOASTERS MR EASTMAN RECALLS IT PROBABLY HAD SOMETHING TO DO WITH THE LATENESS OF THE HOUR BERKELEY INTRODUCED THE SCREENSAVER SOFTWARE TITLED AFTER DARK AT TRADE SHOWS IN 1989 THE TOASTERS WHICH WERE SURROUNDED BY FLOATING PIECES OF TOAST USERS COULD ADJUST HOW WELLBROWNED THE SLICES WERE GENERATED A BUZZ THE RESPONSE LED BERKELEY TO FOCUS ON IMPROVING THE QUALITY OF ITS ARTWORK AND A SECOND VERSION OF AFTER DARK WAS INTRODUCED IN 1990 BERKELEY SOON HAD A MAJOR HIT ON ITS HANDS AFTER DARK NOW RANKS AMONG THE TOPSELLING SOFTWARE APPLICATIONS ACCORDING TO PC DATA A RESTON VA COMPANY THAT TRACKS THE COMPUTER INDUSTRY TO DEVELOP MORE PRODUCTS BERKELEY'S 12 ARTISTS WORK CLOSELY WITH THE COMPANY'S TECHNICIANS NICK RUSH A FORMER MUSICIAN AND TELEVISION SCRIPT WRITER OVERSEES THE DESIGN STAFF I LOOK AT THINGS IN TERMS OF STORY AND RESPONSE WHEN WE'RE DESIGNING PRODUCTS SAYS MR RUSH I WANT THINGS TO HAVE A HOOK FOR ALL THE FUN AT BERKELEY MR BOYD SAYS WE ARE STILL A BUSINESS AND THERE'S A FINANCIAL STRUCTURE AND BUSINESS MODEL EVERYONE KNOWS AND UNDERSTANDS HE RECENTLY HIRED EXPERIENCED FINANCIAL MANAGERS AND RAISED OPERATING FUNDS BY SELLING EQUITY STAKES IN THE COMPANY TO TWO VENTURE CAPITAL FIRMS BERKELEY HAS ALSO BEEN VERY AGGRESSIVE ABOUT PROTECTING ITS BUSINESS INTERESTS WHEN DELRINA CORP A TORONTOBASED MAKER OF SCREEN SAVERS INTRODUCED A PARODY OF FLYING TOASTERS LAST YEAR BERKELEY PROMPTLY FILED A COPYRIGHT INFRINGEMENT SUIT AGAINST IT THE COMPANIES SETTLED OUT OF COURT IN DECEMBER WITH DELRINA AGREEING TO ALTER ITS IMAGERY NONETHELESS THERE IS ALWAYS A LITTLE ROOM FOR FRIVOLITY WHILE FEW AT BERKELEY WILL REVEAL THEIR FAVORITE SCREEN SAVERS MR EASTMAN SAYS HE IS PARTICULARLY FOND OF A PICKLESHAPED FIGURE IN THE COMPANY'S BOGLANDS PACKAGE THAT LOOKS LIKE SANTA CLAUS AND FLOATS TOWARD THE BOTTOM OF THE SCREEN WHEN IT ARRIVES THERE IT BOUNCES AROUND RINGING AND MAKING FOUL NOISES THEN IT EXPLODES MR EASTMAN'S REASON FOR ADORING THE LITTLE FELLOW IT'S AGGRESSIVELY STUPID HE SAYS 9404110104 940411 BUSINESS BRIEF HONDA MOTOR CO AUTO MAKER'S US DIVISION SETS JAPANESE IMPORT RECORD HONDA MOTOR CO'S US DIVISION SAID IT EXPORTED 24386 VEHICLES DURING THE FIRST THREE MONTHS OF THE YEAR A 533 INCREASE FROM THE YEARAGO PERIOD MARCH WAS A RECORD MONTH WITH EXPORTS TOTALING 10824 VEHICLES SAID AMERICAN HONDA MOTOR CO OF TORRANCE CALIF USBUILT HONDA CARS WERE THE TOPSELLING IMPORT BRAND IN JAPAN FOR THE FIRST QUARTER OF 1994 REGISTERING 6117 ACCORDS AND 1481 CIVICS IN SALES BOTH THE ACCORD WAGON AND THE CIVIC COUPE WERE DESIGNED AND DEVELOPED BY HONDA IN THE US AND ALONG WITH THE ACCORD COUPE ARE BUILT ONLY IN THE US 9404110103 940411 ECONOMY ECONOMY MAY SOON GET A NEW SPARK IF COMPANIES BEGIN TO BOOST INVENTORIES BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY WHICH HAS BEEN PICKING UP MOMENTUM FOR SEVERAL MONTHS COULD SOON GET AN EXTRA BOOST FROM RISING INVENTORIES ECONOMISTS SAY COMPANIES WILL HAVE TO BEGIN REPLENISHING THEIR STOCKPILES TO KEEP UP WITH GROWING DEMAND AND TO PROVIDE CUSTOMERS WITH A WIDER SELECTION OF MERCHANDISE THE BUILDUP MAY NOT HAVE AS BIG AN IMPACT ON THE ECONOMY AS IN PREVIOUS RECOVERIES BECAUSE OF A GENERAL TREND TOWARD LOW INVENTORIES BUT EXPANDING INVENTORIES ARE STILL LIKELY TO SPARK ANOTHER ECONOMICGROWTH SPURT POSSIBLY WREAKING MORE HAVOC ON THE ALREADY EDGY FINANCIAL MARKETS AS INVESTORS TRY TO GUESS WHETHER THE NEW GROWTH WILL BRING INFLATION AND HIGHER INTEREST RATES WHEN THE ECONOMY FIRST PICKED UP WE WERE CAUTIOUS AND DIDN'T WANT TO ADD MUCH INVENTORY SAYS LIAM NOLAN COMPTROLLER OF UNIVERSAL DYNAMICS INC AN EQUIPMENT MAKER FOR THE PLASTICS INDUSTRY IN WOODBRIDGE VA BUT WHEN THE COMPANY'S SALES PASSED YEAREARLIER LEVELS BY 50 IT DECIDED TO INCREASE ITS STOCKPILES OF STEEL PRODUCTS CIRCUIT BOARDS AND BLOWERS BY NEARLY 10 USUALLY WHEN A SLIDING ECONOMY TURNS AROUND IT'S LARGELY BECAUSE OF A HUGE BUILDUP IN INVENTORIES AS COMPANIES GEAR UP TO MEET RISING DEMAND IN THE PAST FOUR RECOVERIES INVENTORYREPLENISHING HAS CONTRIBUTED AN AVERAGE OF ABOUT 15 TO ECONOMIC GROWTH IN THE FIRST THREE YEARS THIS TIME AROUND COMPANIES HAVE BEEN SLOW TO ADD TO THEIR STOCKPILES IN THE FOURTH QUARTER FOR INSTANCE THE ECONOMY GREW AT ITS FASTEST CLIP IN 10 YEARS RISING AT AN ANNUAL RATE OF 87 BILLION MEASURED IN 1987 DOLLARS BUT RISING INVENTORIES ACCOUNTED FOR ONLY 2 BILLION OR ABOUT 2 WE HAD NEITHER THE SHARP SWING TOWARD EXPANSIONS NOR THE INVENTORY BUILDUP THIS TIME SAYS WHITE HOUSE ECONOMIST ALAN BLINDER INSTEAD INVENTORIES ARE INCHING DOWN RELATIVE TO SALES FOR ALL OF 1993 TOTAL NONFARM INVENTORIES RAN AT ABOUT 230 TIMES MONTHLY SALES DOWN FROM 235 IN 1992 AND 248 IN 1991 A RECENT SURVEY OF PURCHASING MANAGERS FOUND THEIR INVENTORIES AT THE LOWEST LEVEL SINCE DECEMBER 1991 OF THE 20 INDUSTRIES SURVEYED ONLY THE APPAREL PLASTICS AND RUBBER INDUSTRIES INCREASED STOCKPILES BUT MANY ECONOMISTS INCLUDING FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN WHO WATCHES INVENTORY FIGURES CLOSELY SUSPECT THAT A BUILDUP IN STOCKPILES IS LIKELY SOON GIVING THE ECONOMY AN EXTRA KICK WE'RE AT A CRITICAL POINT SAYS ALAN GAYLE DIRECTOR OF SHORTTERM INVESTMENTS FOR CAPITOLINE INVESTMENT SERVICES INC A SUBSIDIARY OF CRESTAR BANK WITH BUSINESS PICKING UP CUSTOMER SERVICE IS VERY IMPORTANT IT'S GOOD BUSINESS TO MAKE SURE YOU HAVE AN ADEQUATE SELECTION SOME COMPANIES HAVE ALREADY FOUND THAT OUT TAYLOR MACHINE WORKS INC A MAKER OF INDUSTRIAL LIFT TRUCKS IN LOUISVILLE MISS HAD A RECORD SALES PACE IN 1993 20 ABOVE 1992'S AND EXPECTS A SIMILAR INCREASE THIS YEAR BUT IT WASN'T UNTIL LATE LAST YEAR THAT THE COMPANY STARTED BUILDING UP ITS STOCKPILES OF ENGINES TRANSMISSIONS AND AXLES SAYS PRESIDENT LEX TAYLOR MR TAYLOR SAID HE REALIZED IT WAS BECOMING DIFFICULT TO SERVE CUSTOMERS IN A TIMELY MANNER AND FEARED LOSING THEM NO QUESTION HE SAYS THE CUSTOMER WILL GO SOMEWHERE ELSE SO WE WANT TO HAVE A LITTLE CUSHION THERE THE COMPANY'S INVENTORIES ARE NOW 10 HIGHER THAN A YEAR EARLIER IF THIS ATTITUDE IS DUPLICATED ACROSS THE COUNTRY THE ECONOMY COULD BE IN FOR MORE GROWTH IN THE SECOND HALF OF THE YEAR THAN PREVIOUSLY THOUGHT THE POSSIBLE CONTRIBUTION OF INVENTORIES HAS BEEN VIRTUALLY IGNORED IN THE GROWTH SCENARIOS OF MANY ECONOMISTS BUT MARK ZANDI CHIEF ECONOMIST OF REGIONAL FINANCIAL ASSOCIATES IN WEST CHESTER PA SAYS INCREASING STOCKPILES COULD ADD 05 TO 1 PERCENTAGE POINT TO ECONOMIC GROWTH OVER THE NEXT YEAR GIVING THE ECONOMY A GROWTH SURPRISE PART OF WHAT'S HAPPENING HAS TO DO WITH THE NEW TREND IN LOW INVENTORIES THE JUSTINTIME CRAZE THAT HAS SWEPT CORPORATE AMERICA MEANS INVENTORIES AREN'T LIKELY TO GROW AS FAST AS THEY HAVE IN THE PAST COMPANIES HAVE WORKED TOO HARD ON INVENTORY MANAGEMENT THEY ARE NOT GOING TO GIVE IT UP SAYS RICHARD BERNER CHIEF ECONOMIST OF MELLON BANK IN PITTSBURGH TRUCKS HAVE BEEN INSTRUMENTAL IN HELPING COMPANIES KEEP INVENTORIES LEAN EIGHTEENWHEELERS PULL UP TO FACTORY LOADING DOCKS TO DELIVER PARTS THAT GO ALMOST IMMEDIATELY ONTO PRODUCTION LINES BYPASSING THE WAREHOUSES THE TREND TOWARD LOWER STOCKPILES MAKES IT DIFFICULT FOR ECONOMISTS TO DRAW FROM THE PAST AND FIGURE OUT WHAT ROLE INVENTORYBUILDING WILL PLAY IN THIS RECOVERY BUT MR ZANDI SAYS INVENTORIES ARE SURE TO PLAY A BIGGER ROLE DESPITE THE TREND EVEN GIVEN THE TRENDS INVENTORIES ARE MUCH MUCH LOWER THAN YOU WOULD EXPECT HE SAYS SO IT SEEMS THAT PART OF WHAT HAS HAPPENED HAS ALSO HAD TO DO WITH CAUTION BUSINESSES WARY ABOUT THE STRENGTH OF THE CONSUMER HAVEN'T WANTED TO FILL UP SHELVES WITH EXTRA MERCHANDISE ONLY TO HAVE THE GOODS SIT THERE BUT CONSUMERS NOW SEEM FIRMLY BACK IN THE SADDLE SO COMPANIES MAY BE WILLING TO GO A LITTLE FARTHER OUT ON THE LIMB TO BEEF UP THE STOCKROOM A GOOD ANALOGY TO WHAT HAS HAPPENED WITH INVENTORIES IS THE UNWILLINGNESS OF MANUFACTURERS TO ADD WORKERS IN THE FIRST FEW YEARS OF THE RECOVERY DESPITE AN IMPROVING ECONOMY FACTORIES INSTEAD RELIED HEAVILY ON OVERTIME WHILE CONTINUING TO SLASH THEIR PAYROLLS PART OF THE PHENOMENON WAS A TREND TOWARD FOCUSING ON EFFICIENCY BUT A FEW MONTHS AGO FACTORIES FINALLY STARTED ADDING NEW WORKERS SUGGESTING THAT A BIT OF CAUTION HAD BEEN INVOLVED AS WELL THE FACT THAT INVENTORIES ARE GROWING FAR MORE SLOWLY THAN IN PREVIOUS RECOVERIES DOES HAVE ADVANTAGES IT HELPS SET UP THE ECONOMY TO GROW AT A STEADY AND EVEN PACE RATHER THAN IN BIG BUSTANDBOOM CYCLES SAYS STUART HOFFMAN CHIEF ECONOMIST OF PNC BANK CORP OF PITTSBURGH OFTEN WHEN DEMAND SLOWS DOWN BUSINESSES ARE CAUGHT WITH A LOT OF EXCESS INVENTORY AND MUST SHARPLY CURB PRODUCTION CAUSING THE ECONOMY TO CONTRACT ALTHOUGH NO ONE EXPECTS INVENTORIES TO BEGIN GROWING AT AN EXTREMELY FAST PACE THERE ARE A FEW THINGS THAT MAY MAKE STOCKPILES RISE MORE RAPIDLY THAN EXPECTED IF INFLATION TAKES OFF WHICH DOESN'T SEEM LIKELY COMPANIES MAY LOAD UP ON INVENTORIES AS A HEDGE AGAINST HIGHER PRICES DOWN THE ROAD AND THE POSSIBILITY OF MAJOR STRIKES LIKE THE TEAMSTERS TRUCKING STRIKE NOW IN PROGRESS MAY ALSO PROMPT INVENTORYBUILDING 9404110102 940411 INDIA'S VIDESH SANCHAR NIGAM TO MAKE NATION'S LARGEST INTERNATIONAL OFFERING BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL BOMBAY INDIA INDIA'S LARGEST INTERNATIONAL EQUITY OFFERING TO DATE IS FINALLY GOING TO MARKET THE COUNTRY'S OVERSEAS TELECOMMUNICATIONS COMPANY STATEOWNED VIDESH SANCHAR NIGAM LTD OR VSNL BEGINS ITS ROADSHOW IN TOKYO MONDAY IF THE RESPONSE IS FAVORABLE ANALYSTS SAY THE ISSUE COULD BE AS LARGE AS 1 BILLION THE MUCHDELAYED OFFERING OF GLOBAL DEPOSITARY RECEIPTS OR GDRS WHICH REPRESENT SHARES IN THE COMPANY AND ARE LIKELY TO BE TRADED ON THE LUXEMBOURG STOCK EXCHANGE HAD BEEN EXPECTED TO REACH THE MARKET IN FEBRUARY OR MARCH BUT OBTAINING GOVERNMENT CLEARANCES TOOK LONGER THAN THE COMPANY HAD ANTICIPATED MEANWHILE THE MARKET FOR INDIAN SHARES HAS SLUMPED BOTH AT HOME AND ABROAD VSNL'S SHARE PRICE WHICH PEAKED IN FEBRUARY AT MORE THAN 1700 RUPEES 5460 HAS FLUCTUATED THIS WEEK BETWEEN 1200 RUPEES AND 1400 RUPEES WITH ONLY A FEW THOUSAND SHARES TRADED SOME INDIAN GDRS FORMERLY IN HEAVY DEMAND ARE TRADING BELOW THEIR ISSUE PRICES SOME ARE EVEN SELLING BELOW THE ISSUING COMPANIES' SHARE PRICES IN THE BOMBAY MARKET THE PACE OF NEW GLOBAL OFFERINGS HAS SLOWED FROM 14 IN JANUARY AND FEBRUARY TO JUST TWO SMALL ISSUES IN MARCH IT WAS BOUND TO HAPPEN SAYS AJIT DAYAL A DIRECTOR AT JARDINE FLEMING INDIA SECURITIES SOME INDIAN COMPANIES WENT OUT AT VERY HIGH PRICES AND THERE'S A LOT OF INDIAN PAPER ABOUT INVESTORS HE ADDS ARE TURNING CAUTIOUS FOREIGN INVESTMENT IN INDIAN SHARES WHICH REACHED ALMOST 4 BILLION 25 BILLION OF THAT THROUGH GDRS IN THE YEAR ENDED MARCH 1994 HAS SLOWED THE BOMBAY SENSITIVE INDEX OF INDIAN SHARES HAS FALLEN ABOUT 10 SINCE THE GOVERNMENT ANNOUNCED ITS LATEST BUDGET AT THE END OF FEBRUARY SHARE PRICES AND LIQUIDITY HAVE ALSO BEEN HIT BY A CONTROVERSY BETWEEN BROKERS AND THE SECURITIES AND EXCHANGE BOARD OF INDIA THE DISPUTE ERUPTED AFTER THE REGULATORY BODY BANNED CARRYOVER TRADING THROUGH WHICH BROKERS COULD FINANCE OPEN POSITIONS INDEFINITELY RATHER THAN TAKING DELIVERY OF SHARES TO ADD TO INVESTORS' WOES CUSTODIAN BANKS WHICH TRANSFER SHARES FOR CLIENTS AND STORE THE SHARE CERTIFICATES HAVE STOPPED TAKING NEW CLIENTS IN ORDER TO CLEAR THE BACKLOG OF PAPERWORK GENERATED BY INDIA'S CUMBERSOME SETTLEMENT PROCEDURES IN THE RUSH OF FOREIGN BUYING THAT HIT THE MARKET LATE LAST YEAR STILL VSNL IS SEEN AS A STRONG COMPANY AND ITS ISSUE LEAD MANAGED BY SALOMON BROTHERS AND KLEINWORT BENSON COULD BE ATTRACTIVE BUT THE PRICING IS CRUCIAL THE FUNDAMENTALS ARE VERY STRONG SAYS SANJEEV NANAVATI HEAD OF MERCHANT BANKING AT STANDARD CHARTERED BANK BUT IF YOU OVERPRICE THE DEAL IT MAY NOT BE VERY ATTRACTIVE IT HAS TO BE A VERY ATTRACTIVE RETURN TO DRAW IN THAT KIND OF MONEY ON THE OTHER HAND HE ADDS IN AN ISSUE OF THIS SIZE THE COMPANY AND ITS LEAD MANAGERS WILL BE UNDER PRESSURE NOT TO APPEAR TO SELL THE COUNTRY SHORT BY UNDERPRICING THE ISSUE VSNL THE FIRST STATEOWNED FIRM TO ISSUE GDRS IS EXPECTED TO RETAIN ITS MONOPOLY ON INDIA'S INTERNATIONAL TELECOMMUNICATIONS TRAFFIC FOR THE FORSEEABLE FUTURE AND IT'S IN A MARKET WHERE TELECOMMUNICATIONS COMPANIES HAVE MORE BUSINESS THAN THEY CAN HANDLE BASIC TELECOMMUNICATIONS SERVICES HAVE GROWN 10 A YEAR WELL SHORT OF THE 17 GROWTH IN DEMAND AS MEASURED BY WAITING LISTS FOR TELEPHONES DEMAND FOR INTERNATIONAL TELECOMMUNICATIONS HAS BEEN GROWING EVEN FASTER ANALYSTS SAY THE COMPANY HAS A VERY GOOD REPUTATION AND WE FEEL IT SHOULD GROW CONTINUOUSLY FOR THE NEXT FIVE YEARS SAYS HEMENDRA KOTHARI CHAIRMAN OF DSP FINANCIAL CONSULTANTS LTD VSNL PLANS TO ISSUE GDRS REPRESENTING 20 MILLION SHARES WHICH AT THE COMPANY'S CURRENT SHARE PRICE WOULD BRING IN ABOUT 900 MILLION THE OFFERING IS EXPECTED TO INCREASE VSNL'S PAIDIN CAPITAL TO ONE BILLION RUPEES 321 MILLION FROM 800 MILLION RUPEES THE COMPANY PLANS TO INVEST ALMOST 1 BILLION IN AN AMBITIOUS EXPANSION PROGRAM THAT INCLUDES A FIBEROPTIC SUBMARINE CABLE ALONG A COAST OF INDIA WHICH WOULD AUGMENT DOMESTIC AND INTERNATIONAL TRAFFIC A SERIES OF GATEWAY EXCHANGES INCLUDING THOSE NEEDED FOR MOTOROLA'S IRIDIUM GLOBAL TELECOMMUNICATIONS PROJECT A SHARE IN A PROJECT IMPLEMENTED BY NYNEX CORP TO BUILD A FIBEROPTIC SUBMARINE CABLE LINKING THE UK WITH JAPAN AND MEMBERSHIP IN THE INMARSATP GLOBAL TELECOMMUNICATIONS SYSTEM VSNL POSTED A PRETAX PROFIT OF 307 BILLION RUPEES 112 BILLION RUPEES AFTER TAXES ON SALES OF 748 BILLION RUPEES IN THE FISCAL YEAR ENDED MARCH 1993 THIS COMPARES WITH A PRETAX PROFIT OF 276 BILLION RUPEES ON SALES OF 616 BILLION RUPEES A YEAR EARLIER 9404110101 940411 WORLD STOCK MARKETS JAPAN'S POLITICS LEAVE STOCKS IN LURCH BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN IS GETTING A NEW PRIME MINISTER AND THE JAPANESE STOCK MARKET MAY GET A WHOLE NEW DEAL THE RESIGNATION OF PRIME MINISTER MORIHIRO HOSOKAWA IS THROWING ONE OF THE WORLD'S TOPPERFORMING STOCK MARKETS THIS YEAR INTO THE LURCH SUDDENLY INVESTORS ARE RECONSIDERING THE BULLISH ECONOMICRECOVERY SCENARIOS THAT HAVE LIFTED THE NIKKEI 225STOCK INDEX 14 SINCE DECEMBER AFTER A WEEKEND OF CRISIS MEETINGS FAILED TO REACH ACCORD ON A NEW LEADER JAPAN'S RULING COALITION SAYS IT INTENDS TO TRY AGAIN TO PICK A SUCCESSOR TO MR HOSOKAWA THIS WEEK BUT THE POLITICAL UNCERTAINTY SEEMS LIKELY TO SLOW THE TIMETABLE FOR ECONOMIC STIMULUS AND DEREGULATION THUS MAKING THE OUTLOOK FOR A RECOVERY IN THE ECONOMY AND CORPORATE EARNINGS MUCH MORE UNCERTAIN THIS LOOKS TO ME LIKE A RECIPE FOR A COMPLETE MESS SAYS ALEXANDER KINMONT STRATEGIST AT MORGAN STANLEY JAPAN LTD THE REASON TO HOLD THIS MARKET HAS BEEN THE RESTRUCTURING OF THE ECONOMY AND THAT ISN'T HELPED BY THE PRIME MINISTER'S RESIGNATION MORGAN STANLEY HAS BEEN A LEADING BULL ON JAPAN THIS YEAR WITH CALLS FOR THE NIKKEI TO HIT 21000 NOW MR KINMONT THINKS THE MARKET WILL SOON LOSE 5 FROM ITS 1993499 CLOSE ON FRIDAY THEN DRIFT FOR SEVERAL MONTHS WHILE THE POLITICAL PICTURE CLEARS THE CHIEF WORRY IS THAT MR HOSOKAWA'S DEPARTURE WILL SQUELCH JAPAN'S MODEST ECONOMIC UPTURN SIGNS OF WHICH ALREADY ARE BEGINNING TO APPEAR IN RECENT CARSALES AND HOUSINGSTARTS DATA WHILE ANY SUCCESSOR IS UNLIKELY TO ROLL BACK MR HOSOKAWA'S PROGRAM JAPAN'S NEXT LEADER MAY FACE GREATER OBSTACLES IN GETTING HIS INITIATIVES THROUGH A FRACTIOUS POLITICAL LANDSCAPE WITH JAPAN'S ECONOMY STRUGGLING TO BOUNCE OFF THE BOTTOM THE LAST THING THE INVESTORS WANT IS A POLITICAL CRISIS WORRIES BANKER HIDEO ISHIHARA WHO LAST WEEK WAS NAMED CHAIRMAN OF GOLDMAN SACHS JAPAN LTD AT THIS POINT OF FAINT ECONOMIC RECOVERY WE AGAIN HAVE A PERIOD OF POLITICAL UNCERTAINTY THAT COULD STOP THE RECOVERY IN ITS TRACKS HE SAYS SOME SECTORS SEEM PARTICULARLY VULNERABLE IF THE INFLUENCE OF JAPAN'S BUREAUCRATS IS ENHANCED IN JAPAN'S NEXT GOVERNMENT SEVERAL OF THE BIGCAPITALIZATION SHARES THAT WERE RISING ON MR HOSOKAWA'S PROPOSED ECONOMICRESTRUCTURING PROGRAMS WILL BE CLOBBERED THE STOCKS TIED TO DEREGULATION ARE SUSPECT SAYS ALAN LIVSEY STRATEGIST AT KLEINWORT BENSON INTERNATIONAL INC HE THINKS SHARES OF TOKYO BROADCASTING SYSTEM INC ARE DUE TO TUMBLE CUTTING REGULATION AND OPENING UP BROADCASTING TO FREERMARKET FORCES WAS ONE OF THE INITIATIVES TARGETED BY MR HOSOKAWA IN TRADING MONDAY AT ABOUT MIDDAY THE NIKKEI GAINED 3160 POINTS TO 1996659 THE NIKKEI PLUNGED 2 IN LESS THAN 10 MINUTES THEN REVERSED ON HOPES THAT THE POLITICAL CRISIS WOULD ACTUALLY BREAK THE PARLIAMENTARY GRIDLOCK ON THE NATION'S BUDGET WHICH HAS BEEN DRAGGING DOWN SENTIMENT THE MARKET WAS A LITTLE HASTY WORKING OUT A POLITICAL SUCCESSION SAYS HUGH SIMON MANAGING DIRECTOR OF EAST ASIA HAMON ASSET MANAGEMENT LTD PEOPLE WERE SAYING THE NIKKEI WAS GOING TO GO TO 24000 BUT IN FACT IT'S NOT GOING TO BE SUCH AN EASY RIDE IN JAPAN MR SIMON HASN'T GIVEN UP ON JAPAN BUT SEES A SHAKEOUT AS INTERNATIONAL INVESTORS GET SKITTISH ABOUT THE 27 BILLION IN NEW FUNDS THEY ALREADY HAVE INVESTED IN JAPAN SO FAR THIS YEAR HE IS HOLDING ON TO SHARES IN ELECTRONICS EXPORTERS SUCH AS RICOH CO WHICH RELY ON OVERSEAS EARNINGS BUT HE SAYS IT'S TIME TO SELL BIGCAPITALIZATION COMPANIES SUCH AS THOSE IN THE CHEMICAL AND PAPER SECTORS BECAUSE OF THE DIMMER PROSPECTS OF A CYCLICAL RECOVERY SOON EXPORTERS WHICH INCLUDE JAPAN'S ELECTRONICS AND AUTOMOTIVE GIANTS COULD BENEFIT FROM A WEAKER YEN WHICH WOULD MAKE THEIR PRODUCTS CHEAPER IN OVERSEAS MARKETS INDEED THE YEN DID FALL SOMEWHAT IN THE WAKE OF THE POLITICAL NEWS CLOSING AT 10515 IN NEW YORK DOWN FROM 10485 MR KINMONT THINKS INVESTORS SHOULD GET OUT OF THE STOCKS THAT WERE RISING ON HOPEDFOR POLITICAL CHANGES NIPPON TELEGRAPH & TELEPHONE CORP THE MOST WIDELY OWNED STOCK IN JAPAN COULD BE A PRIME CASUALTY HE SAYS BECAUSE IT'S A STOCK THAT'S CLOSELY ASSOCIATED WITH HOSOKAWA IT'S BEEN MOVING ON PUBLICITY ABOUT POSSIBLE DEREGULATION AND RATE INCREASES NOT ON ITS FUNDAMENTALS MICHAEL LINDSELL INVESTMENT DIRECTOR AT GT CAPITAL MANAGEMENT CO SAYS THE MARKET WAS ALREADY EXPENSIVE EVEN BEFORE MR HOSOKAWA STEPPED DOWN NOW HE THINKS THE POLITICAL ENVIRONMENT WILL BE LESS CERTAIN WHICH COULD CRIMP ECONOMIC GROWTH THE SHARE PRICES OF SUCH GIANT PAPER COMPANIES AS MITSUBISHI PAPER MILLS LTD ALONG WITH SEVERAL CHEMICAL AND STEEL STOCKS ARE PARTICULARLY VULNERABLE HE THINKS TO BE SURE SOME INVESTORS THINK MR HOSOKAWA'S FALL IS A PLUS FOR THE MARKET IF I HAD ANY MORE CASH TO INVEST I'D BUY SAYS MARK FAWCETT A FUND MANAGER WITH INDOSUEZ GARTMORE ASSET MANAGEMENT JAPAN LTD HOSOKAWA'S PRESENCE WAS JUST HOLDING UP PASSAGE OF THE BUDGET AND WE'RE NOT WORRIED ABOUT A DOWNTURN IN THE ECONOMIC CYCLE DEREGULATION HE THINKS IS STILL IN THE CARDS FOR JAPAN MR FAWCETT IS SHYING AWAY FROM BIG COMPANIES CONCENTRATING INSTEAD ON SMALLER JAPANESE STOCKS THAT HE THINKS WILL BE NIMBLE ENOUGH TO PROFIT FROM DEREGULATION HE HAS BEEN BUYING SHARES OF COMSON CORP WHICH MANUFACTURES RECYCLING MACHINERY AND KISHU PAPER CO A SMALLER PULP COMPANY LONDON SHARES FELL FRIDAY HELD BACK BY A WEAK BRITISH GOVERNMENT BOND MARKET AND CONTINUED CONCERNS ABOUT US INTEREST RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11244 DOWN 032 REFLECTING AN INCREASE IN MARKETS IN EUROPE AND DROPS IN AMERICAN AND ASIA/PACIFIC MARKETS SAVINGS AND LOAN STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9134 UP 116 OR 13 WITH METROPOLITAN FINANCIAL OF THE US POSTING A 46 GAIN IN ITS LOCAL CURRENCY COAL STOCKS TRAILED AT 10333 DOWN 298 OR 28 WITH CYPRUS AMAX MINERALS OF THE US SLIDING 56 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 82 POINTS TO 31208 JUST TWO POINTS ABOVE THE SESSION'S LOW THE FT 30STOCK INDEX FELL 76 POINTS TO 24673 VOLUME WAS 8767 MILLION SHARES COMPARED WITH 7124 MILLION SHARES IN THE PREVIOUS SESSION INVESTORS REMAINED NERVOUS ABOUT US INTEREST RATES AND AWAITED CLUES FROM THE DIRECTION OF US BOND AND EQUITY MARKETS STILL THE LONDON BOURSE WAS RELIEVED THAT FRIDAY'S SESSION WAS RELATIVELY CALM FOLLOWING RECENT SWINGS IN FRANKFURT PRICES CLOSED MIXED AND WELL BELOW THE DAY'S HIGHS THE DAX 30STOCK INDEX EDGED UP 193 POINTS TO 220334 AFTER FALLING ABOUT 10 POINTS IN THE LAST 10 MINUTES OF TRADING THOUGH IT ENDED LAST WEEK WITH A 33 GAIN FRIDAY'S LATE DROP WAS ATTRIBUTED TO THIN TRADING AND INVESTORS' RELUCTANCE TO HOLD POSITIONS OVER THE WEEKEND IN MILAN SHARES INCLUDING THOSE TRADED ELECTRONICALLY RALLIED 15 IN HEAVY TRADING MARKING THE THIRD GAIN IN A ROW AS INVESTORS CONTINUED TO BELIEVE THAT A NEW ITALIAN GOVERNMENT WILL BE FORMED DESPITE POLITICAL WRANGLING IN MEXICO CITY STOCKS TUMBLED 19 IN A QUIET SESSION FOLLOWING NEWS THAT FOREIGN INVESTMENT IN THE MARKET IN THE FIRST QUARTER DROPPED 79 FROM A YEAR EARLIER HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9404110100 940411 A TEST OF INTEGRITY BY WAYNE D ANGELL SOMETIMES POLICY MAKERS AND BOND HOLDERS COMPLAIN THAT BOND MARKETS ARE NOT RATIONAL WHEN THE MARKET MOVES AGAINST THEM SUCH COMPLAINTS ARE SILLY POLICY MAKERS SHOULD TAKE ADVANTAGE OF THE MARKET'S ACTIONS TO LEARN MORE AND TO SHARPEN THEIR POLICY STRATEGY BONDHOLDERS AND BOND BUYERS CAN ALWAYS BUY MORE BONDS IF BOND PRICES ARE IRRATIONALLY CHEAP WHY WERE THERE NO CRIES ABOUT IRRATIONAL MARKETS LAST OCTOBER WHEN THE YIELD ON 30YEAR TREASURY BONDS FELL BELOW 58 WHEN THERE WAS THE GOOD NEWS OF FALLING INTEREST RATES WE CONTINUALLY HEARD THE CLINTON CROWD EXPLAINING THAT THEIR DEFICITREDUCTION PACKAGE WAS RESPONSIBLE YET THAT WAS WRONG BOND PRICE MOVEMENTS ARE INITIATED BY CHANGED PERCEPTIONS CONCERNING THE MONETARY POLICY ENVIRONMENT IN THE PAST 12 MONTHS UNFORTUNATELY FEDERAL RESERVE POLICY MAKERS FINALLY SUCCEEDED IN CONVINCING THE MARKETS THAT THEY WERE GIVING FIRST PRIORITY TO GETTING THE ECONOMY GOING FOR THE FED THE GOAL OF ZERO INFLATION WAS RELEGATED TO A SECONDARY PRIORITY FACED WITH THE WHITES OF THE EYES OF ECONOMIC GROWTH THE MARKET CHANGED IT EXPECTATIONS THE MARKET SAW THAT THE FED WAS BEING TIMID ABOUT TIGHTENING AND SO CRUMBLED THERE IS AN ELEMENT OF MORALITY PLAY TO TO PAST MONTHS' EVENTS AND THEIR BACKGROUND AFTER ALL 80 YEARS OF HAVING THE FED ON THE WATCH HAVE MEANT THAT IN 1994 A 20 BILL BUYS ONLY AS MUCH AS A DOLLAR BILL DID IN 1914 SINCE INFLATION HAS AVERAGED NEARLY 4 A YEAR FOR THOSE EIGHT DECADES BONDHOLDERS NEED A BONA FIDE PLEDGE IN ORDER TO EXPECT DEPRECIATION TO BE LESS THAN THAT DURING THE NEXT 30 YEARS THIS IS WHAT THE MARKET IS TELLING THOSE WHO WILL PICK NEW GOVERNORS FOR THE FED IN COMING WEEKS AND THOSE WHO WILL PICK A SUCCESSOR TO CHAIRMAN ALAN GREENSPAN IN 1996 CREDIBILITY ON SOUND MONEY WILL DETERMINE THE DEGREE OF THE FED'S POWER IN THE FUTURE LET'S TAKE A LOOK AT THE BOND MARKETS DURING THE PAST FEW MONTHS MONETARY POLICY DIRECTLY CONTROLS SHORTTERM INTEREST RATES AND CAN STRONGLY INFLUENCE THE DIRECTION OF LONGTERM RATES WHEN THE FED IS LOOSE AND SHORTTERM INTEREST RATES ARE COOPTED IN THE NAME OF MAKING THE ECONOMY GROW HIGHER RATES ARE AROUND THE CORNER BONDHOLDERS TAKE HITS DURING THE TRANSITION THE MAGNITUDE OF THOSE HITS DEPENDS ON THE MARKET'S DEGREE OF UNCERTAINTY AS WE HAVE SEEN LATELY A SERIES OF SMALL STEPS WITH NO END IN SIGHT CAUSES UNCERTAINTY A ONETIME SUBSTANTIAL MOVE WOULD BE MORE REASSURING POLITICS AND THE CLINTON ADMINISTRATION'S THREATS OF EXCHANGERATE WARFARE PLAY A ROLE HERE IF MONETARY POLICY MAKERS ARE IN AN INCREASINGLY HOSTILE POLITICAL ENVIRONMENT MARKETS ARE UNCERTAIN AS TO HOW THE FED WILL ACT ANY TIME ADMINISTRATION OFFICIALS ARE USING THE THREAT OF EXCHANGERATE WARFARE WHILE THE FED PROVIDES ABUNDANT DOLLAR RESERVES US BONDS ARE GOING TO GET TROUNCED FED INFLUENCE ON SHORTTERM INTEREST RATES IS IN FACT DEPENDENT ON THE FED'S OWN SELFRELIANCE IN SCENARIOS LIKE THE ONE MENTIONED ABOVE THE FED LOSES ITS ABILITY TO ACHIEVE LOWER LONGTERM INTEREST RATES IN A DEMOCRACY GENERALLY THE CENTRAL BANK MUST COMPETE FOR POLITICAL POWER WITH THOSE WHO WANT TO DIMINISH ITS INFLUENCE PRIVATE PARTIES AND ELECTED OFFICIALS WHO MIGHT PREFER EXPANSIONARY MONETARY POLICY FOR THEIR OWN REASONS THE FED HOWEVER CAN STRENGTHEN ITS INDEPENDENCE BY ENUNCIATING A CLEAR MESSAGE THAT IT WILL KEEP THE CURRENCY STRONG AND SO INCREASE THE WELFARE OF CITIZENS IN THIS CASE THE PUBLIC INTEREST IS CLOSELY ALIGNED WITH THAT OF BONDHOLDERS FALLING BOND PRICES ARE A SPECIAL OPPORTUNITY FOR THE CENTRAL BANK TO REASSERT INTEGRITY AND REEMPHASIZE ITS SOUNDMONEY OBJECTIVES WHEN BONDHOLDERS SENSE THAT MONETARY POLICY HAS BEEN TOO LOOSE TOO LONG THE FED IS PUSHED INTO A CORNER DOES IT WISH TO WIN BACK CREDIBILITY BY SHOWING THAT ITS PRIMARY OBJECTIVE IS TO CONTROL INFLATION OR DOES IT WISH TO LIE LOW WINNING CREDIBILITY BACK MEANS HIGHER RATES NOW THE ALTERNATIVE THOUGH IS YET HIGHER RATES IN THE FUTURE IT IS WORTH TAKING A MOMENT TO RECALL THAT MANY AMERICANS SAW THE COSTS OF A WRONG CHOICE WHEN INFLATION HIT IN THE 1960S AND 1970S AND CAUSED A DECLINE IN OUR WELFARE THE INTERNATIONAL RESERVE CURRENCY ROLE OF THE DOLLAR WAS TAKEN TO THE BRINK OF DISASTER IN 1978 AND 1979 A NEW TERM STAGFLATION WAS ADDED TO OUR ECONOMIC LEXICON AS WORKER PRODUCTIVITY CRASHED AND INFLATION ACCELERATED THE BREAKDOWN IN OUR CONTROL OF MONEY CAUSED A BREAKDOWN IN THE FREE MARKET GENERALLY WITH PRICE CONTROLS WE WERE CLOSE TO SUBSTITUTING PRODUCTION CONTROLS REGULATION AND RATIONING FOR MARKETPLACE SIGNALS OUR MANUFACTURING SECTOR COULD NOT GET IT RIGHT ITS LEADERS SEEMED TO BELIEVE THE CUSTOMER WAS WRONG OF COURSE THE NEXT STEP IN THE CHAIN OF DISASTER WAS TO PROTECT AMERICAN WORKERS AND COMPANIES FROM INTERNATIONAL COMPETITION SEVERAL STEPS WERE TAKEN IN THIS DIRECTION PAUL VOLCKER AVERTED THIS DISASTER AFTER JIMMY CARTER APPOINTED HIM FED CHAIRMAN HE ADOPTED A MONETARY POLICY THAT FOCUSED ON RELEASING AND CONTROLLING SHORTTERM INTEREST RATES THERE WAS A LOUD SQUEALING OF THE BRAKES SHORTTERM INTEREST RATES SPIKED ABOVE 20 UNTIL INFLATION NOSEDIVED FROM DOUBLEDIGIT RATES AND THE DEMAND FOR MONEY SURGED UPWARD CONSEQUENTLY THE MONEY STOCK GREW BUT DEMAND OUTPACED IT AND MONETARY RESTRAINT WAS MAINTAINED THE ADJUSTMENT WAS NOT WITHOUT COST THE UNANTICIPATED SLOWING IN INFLATION CONTRIBUTED TO A PROLONGED RECESSION AND SEVERELY LIMITED THE GROWTH OF FEDERAL REVENUES PRICES ADJUSTED WE HAD BANKRUPTCIES IN THE RUSTBELT FARM AND ENERGY SECTORS FOLLOWED BY BANK FAILURES A RELAXATION OF MONETARY POLICY IN 1986 THAT MAY HAVE AVERTED DEPRESSION SERVED TO REIGNITE INFLATION FIRES ON BOTH COASTS ALAN GREENSPAN MR VOLCKER'S SUCCESSOR WORKED WITH A CORE OF SOUND MONEY ADVOCATES ON THE FEDERAL OPEN MARKET COMMITTEE TO CRAFT A STRATEGY THAT WOULD DISINFLATE WITH LESS PAIN SIGNIFICANT VOICES AMONG US PROCLAIMED ZERO INFLATION AND MONETARY RESTRAINT FOLLOWED ONE COST OF THIS POLICY WAS A DROP IN PRICES OF LAND AND HOUSES BANK FAILURES AND THE CREDIT CRUNCH AFTER ALL THIS WHY WOULD THOSE FORMULATING MONETARY POLICY TODAY LACK RESOLVE IN CONTINUING THE DISINFLATION STRATEGY THE ONETIME COSTS WERE PAID IN FULL AMERICANS KNOW TOO THAT THE PRICE STABILITY OF THE VOLCKERGREENSPAN ERA HAS DIRECTLY BUILT AMERICAN COMPETITIVENESS JUST AS THE ONSET OF INFLATION WAS ACCOMPANIED BY A DECLINE IN LABOR PRODUCTIVITY THE NEW ERA OF PRICE STABILITY WAS ASSOCIATED WITH A GROWING AWARENESS IN THE ECONOMY THAT PROFIT MARGINS ON GOODS COULD BE IMPROVED ONLY THROUGH NEW EFFICIENCIES NOT THROUGH PRICE INCREASES CONSUMERS AND PRODUCERS AS BUYERS EXPECTED TO GET MORE FOR THEIR MONEY AND GENERALLY REFUSED TO TAKE LESS AS A RESULT BUSINESS LEADERS WERE FINALLY MOTIVATED TO USE THE FRUITS OF NEW INFORMATION TECHNOLOGY TO PRODUCE MORE WITH LESS MIDDLE AND TOPMANAGEMENT PEOPLE JOINED THE RANKS OF PRODUCTION WORKERS WHO HAD TO ACCEPT EITHER LOWER PAY OR UNEMPLOYMENT FOR THE FIRST TIME IN SEVERAL DECADES COMPENSATION INCREASES WERE EQUAL TO OR LESS THAN PRODUCTIVITY GAINS EQUITY PRICES IN THE US REFLECT THE NEW BRIGHTER EARNINGS STREAMS HOW COULD THE BENEFITS OF HAVING ACHIEVED GRADUAL AND SURE PROGRESS TOWARD PRICE LEVEL STABILITY BE OVERLOOKED WHAT OF THE FUTURE WHILE THE FEDERAL RESERVE'S OPEN MARKET COMMITTEE WAITS TO DECIDE THE PROSPECTS FOR ACHIEVING HIGH GROWTH WITHOUT INFLATION RECEDE MONETARY ACCOMMODATION A POLICY THAT IS TOO EASY IS STILL IN PLACE THIS IS AN ACCOMMODATION THAT HAS ALREADY BEGUN THE PROCESS OF SYNCHRONIZING ALL SECTORS OF THE US ECONOMY INTO AN INFLATIONACCELERATING EXPANSION JUST AS PEOPLE BUY GOLD TO AVOID MONETARY ASSETS SO THEY ARE BUYING HOUSES NOW TO BEAT PRICE INCREASES CONTINUING THE CURRENT POLICY WILL MEAN AN UNNECESSARY AND COSTLY RECESSION THERE SEEMS TO BE A HESITANCY TO RESTATE THE PRICE STABILITY PLEDGE ON THE PART OF THE FED'S LEADERSHIP YET I FOR ONE AM COUNTING ON MY FORMER COLLEAGUES TO DO THE RIGHT THING NOT EVERYONE MAY AGREE ON TIMING BUT THE MEMBERS OF THE COMMITTEE KNOW THEY CAN RETURN TO THE EARLIER DISINFLATION STRATEGY THAT SOUGHT TO TARGET ZERO INFLATION TWO FEDERAL RESERVE GOVERNOR POSTS ARE NOW OPEN BUT NO APPOINTMENT EVENT CAN OVERSHADOW THE PRICESTABILITY TASK AT HAND THE INTEGRITY OF THE FED IS NOT FOR SALE WHAT'S MY PRECISE PRESCRIPTION INCREASE THE DISCOUNT RATE THE RATE OF INTEREST THE FED CHARGES ON LOANS TO BANKS AND OTHER DEPOSITORY INSTITUTIONS PUT THAT NUMBER AT 4 UP 100 BASIS POINTS THEN WAIT UNTIL YOU CAN DETERMINE THE EFFECTS BEFORE MAKING ANOTHER MOVE NEXT LOOK AT GOLD TO TELL YOU IF THE CONCOMITANT 45 FED FUNDS RATE IS TOO HIGH THEN WATCH BOND PRICES RALLY A 5 YIELD FOR 30YEAR BONDS WAS AND STILL MAY BE ACHIEVABLE BEFORE THE END OF THE YEAR BUT IT WILL NOT OCCUR WITHOUT PROMPT ACTION SOME WILL SAY THIS IS A POSTURE THE FED ISN'T STRONG ENOUGH TO TAKE AND THAT IT SHOULD REINFLATE IN ORDER TO BUY UP GOVERNMENT DEBT THIRTY YEARS AGO WHEN THE GOVERNMENT DEBTTOGDP RATIO WAS 35 POLITICIANS MAY HAVE THOUGHT THEY COULD AFFORD SOME ACCELERATION OF INFLATION TODAY WITH THE RATIO MORE THAN TWICE AS HIGH REINFLATING WILL NOT WORK THE US MONETARY SYSTEM WORKS ON PROMISES ITS BELIEVABILITY IS DEPENDENT ON THE GOVERNMENT KEEPING ITS HANDS OUT OF THE FEDERAL RESERVE MONETARYPOLICY PROCESS INDEED BILL CLINTON THE PRESIDENT LIKE BILL CLINTON THE CANDIDATE HAS HAD MUCH TO GAIN BY SHOWING A FRIENDLIER FACE TO THE FED THE PRESIDENT HAS FAR TOO MANY INTEGRITY PROBLEMS TO RISK HIS OWN REELECTION CHANCES BY SUFFERING THE CONSEQUENCES OF THE HIGH INTEREST RATES THAT WOULD FOLLOW THE APPOINTMENT OF EASY MONEY MEMBERS TO THE BOARD OF GOVERNORS MR CLINTON WILL NEED PEOPLE WITH SOUND MONEY VIEWS AND AS THE MARCH 1996 DATE FOR THE APPOINTMENT OF A NEW CHAIRMAN APPROACHES THE BOND MARKET RESPONSE MAY WELL DICTATE THE PRESIDENT'S CHOICE IT COULD IN THE END BE ALAN GREENSPAN OR A CLOSE MONETARY POLICY LOOKALIKE MR ANGELL RECENTLY COMPLETED HIS TERM ON THE FEDERAL RESERVE BOARD OF GOVERNORS 9404110099 940411 BUSINESS BRIEF AZTEC ENERGY CORP ACCOUNTANT'S WORRY CITED COMPANY SEEKS MERGER DEAL AZTEC ENERGY CORP SAID THAT ITS ACCOUNTANT PRICE WATERHOUSE IS WITHDRAWING ITS REPORT ON THE COMPANY'S FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPT 30 1993 AND THAT PRICE WATERHOUSE HAS SUBSTANTIAL DOUBTS ABOUT AZTEC'S ABILITY TO CONTINUE AZTEC ALSO ANNOUNCED THAT IT HAS REACHED A PRELIMINARY AGREEMENT TO MERGE WITH MIDWEST ENERGY OF TULSA OKLA IN A STOCK TRANSACTION AZTEC SAID MIDWEST IS AWARE OF THE PRICE WATERHOUSE DECISION AND THE DALLAS OIL AND GAS COMPANY'S FINANCIAL CONDITION AZTEC SAID PRICE WATERHOUSE RAISED CONCERNS ABOUT RECURRING LOSSES FROM COMPANY OPERATIONS AND LACK OF WORKING CAPITAL AMONG OTHER THINGS FOR THE YEAR ENDED SEPT 30 AZTEC REPORTED A LOSS OF 101 MILLION OR 49 CENTS A SHARE ON REVENUE OF 777721 UNDER THE PROPOSED MERGER MIDWEST AN OIL AND GAS COMPANY WILL EXCHANGE 962 SHARES FOR EACH SHARE OF AZTEC COMMON 9404110098 940411 WHO'S NEWS AMVESTORS FINANCIAL CORP AMVESTORS FINANCIAL CORP TOPEKA KAN ROBERT T MCELROY JACK H BRIER AND JAMES V O'DONNELL WERE NAMED DIRECTORS OF THE INSURANCE COMPANY DR MCELROY 58 YEARS OLD SUCCEEDS JOHN Q ADAMS JR 72 WHO WILL RETIRE NEXT MONTH BECAUSE HE HAS REACHED THE BOARD'S MANDATORY RETIREMENT AGE DR MCELROY IS A SURGEON IN TOPEKA MR BRIER 47 IS PRESIDENT OF BRIER DEVELOPMENT CO A COMMERCIAL REALESTATE FIRM IN TOPEKA AND PREVIOUSLY SERVED AS SECRETARY OF STATE OF KANSAS MR O'DONNELL 43 IS PRESIDENT OF BUSHO'DONNELL & CO AN INVESTMENT FIRM IN ST LOUIS THE ADDITION OF MR BRIER AND MR O'DONNELL TO THE BOARD INCREASES ITS SIZE TO NINE MEMBERS 9404110096 940411 WHAT'S NEWS BUSINESS AND FINANCE A PHARMACY TRADE GROUP FORMED A COMPANY LINKING CHAIN AND INDEPENDENT DRUGSTORES THAT WILL SEEK SOME OF THE RAPIDLY GROWING BUSINESS OF MANAGING PRESCRIPTIONDRUG PROGRAMS FOR EMPLOYERS' HEALTHCARE PLANS THE NEW COMPANY WILL COMPETE AGAINST MERCK'S MEDCO OPERATION AND MCKESSON'S PCS HEALTH SYSTEMS AND WILL USE SEED MONEY FROM SOME OF THE LARGEST CHAIN DRUGSTORES BANK OF NEW YORK AND FLEET FINANCIAL GROUP ARE IN DISCUSSIONS ABOUT A POSSIBLE COMBINATION ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS AS MERGER FEVER APPEARS TO BE SPREADING IN THE BANKING INDUSTRY BUT THE COMPANIES ARE FAR FROM A DEFINITIVE PACT WOOLWORTH IS PULLING OUT OF THE SHORTTERM COMMERCIALPAPER MARKET AMID SIGNS OF INVESTOR UNEASINESS OVER THE RETAILER'S FINANCIAL SITUATION SHIPPERS ACROSS THE COUNTRY TURNED TO PACKAGE DELIVERERS AND NONUNION TRUCK COMPANIES AND GENERALLY WERE ABLE TO MOVE THEIR GOODS DESPITE THE TEAMSTERS' STRIKE AGAINST 22 CARRIERS BUT THE EASY GOING MAY SOON GIVE WAY TO LENGTHENING DELIVERY SCHEDULES THE STOCK MARKET'S DECLINE OVER THE PAST TWO MONTHS WAS A CORRECTION THAT HIT BOTTOM LAST WEEK SOME ANALYSTS SAID THOUGH THE DOW JONES INDUSTRIALS FELL 1900 FRIDAY TO 367426 FOR THE WEEK THEY WERE UP 11 OTHER ANALYSTS SAID THE BOND MARKET HOLDS THE KEY TO STOCKS' PERFORMANCE THE BOND MARKET WILL BE LOOKING CAREFULLY FOR SIGNS OF INFLATION FROM SEVERAL REPORTS THAT WILL BE RELEASED THIS WEEK STRONG RESULTS IN PRODUCER AND CONSUMER PRICES COULD SEND BOND PRICES DOWN AND INTEREST RATES HIGHER THE TREASURY 30YEAR BOND'S PRICE SLID OVER A 1/2 POINT FRIDAY TO YIELD 725 VIACOM IS EXPLORING THE SALE OF MADISON SQUARE GARDEN AND THE NEW YORK KNICKS AND RANGERS SPORTS TEAMS AS IT FACES THE POSSIBLE COLLAPSE OF ITS PLAN TO ACQUIRE BLOCKBUSTER AMONG THE FIRMS THAT HAVE INDICATED INTEREST IS PHONE COMPANY NYNEX A LEON BLACKRUN INVESTMENT FUND HAS ACQUIRED A KEY PIECE OF DEBT IN OLYMPIA & YORK'S US SUBSIDIARY WHICH COULD GIVE IT A SENIOR POSITION TO CITICORP AND OTHER CREDITORS FOR CONTROL OF THE REALESTATE CONCERN'S EQUITY THE ECONOMY COULD SOON GET AN EXTRA BOOST FROM RISING INVENTORIES AS ECONOMISTS SAY COMPANIES WILL HAVE TO REPLENISH STOCKPILES TO KEEP UP WITH GROWING DEMAND AND TO PROVIDE CUSTOMERS A WIDER PRODUCT SELECTION BOEING RECEIVED PENTAGON FUNDING TO HELP DESIGN A LIGHTWEIGHT FIGHTER JET GIVING IT A SHOT AT BECOMING A PRIME CONTRACTOR ON A TACTICALAIRCAFT PROGRAM FOR THE FIRST TIME IN DECADES JAPANESE OIL REFINER KASHIMA OIL ANNOUNCED A 145 BILLION LOSS FROM FOREIGNEXCHANGE TRADING ONE OF THE BIGGEST SUCH LOSSES ON RECORD THE FIRM'S PRESIDENT WILL STEP DOWN CREATIVE TECHNOLOGY SHRANK ITS POPULAR SOUND BOARDS FOR PERSONAL COMPUTERS DOWN TO A MICROCHIP A SOONERTHANEXPECTED FEAT IN ONE OF TECHNOLOGY'S MOST TURBULENT MARKETS THE IRS COMMISSIONER SAID THAT SHE IS SYMPATHETIC WITH THE IDEA OF DISCLOSING CERTAIN INFORMATION ABOUT MUNICIPALBOND ENFORCEMENT ACTIONS BUT SHE SAID ANY HEIGHTENED DISCLOSURE WOULD REQUIRE CONGRESSIONAL ACTION BONDS LEHMAN BROTHERS TREASURY INDEX 511538 OFF 2313 COMMODITIES OIL 1557 A BARREL OFF ONE CENT DOW JONES FUTURES INDEX 13888 OFF 089 SPOT INDEX 13110 OFF 053 DOLLAR 10515 YEN UP 025 17125 MARKS OFF 00040 9404110095 940411 WHO'S NEWS SANWA BANK LTD SANWA BANK LTD TOKYO JAMES R POWERS WAS NAMED COPRESIDENT OF SANWA SECURITIES USA CO LP THE AMERICAN SECURITIES SUBSIDIARY OF THIS JAPANESE BANKING CONCERN MR POWERS 43 YEARS OLD WAS MOST RECENTLY MANAGING DIRECTOR/HEAD OF FOREIGN EXCHANGE AND FOREIGN FIXEDINCOME SALES AT CS FIRST BOSTON INC THE COPRESIDENCY WILL BE SHARED WITH SHIRO OZEKI A COMPANY SPOKESMAN SAID THE POSITION MR POWERS IS FILLING HAS BEEN VACANT FOR ABOUT 10 MONTHS AT SANWA SECURITIES USA THE COPRESIDENCY IS TYPICALLY DIVIDED BETWEEN A JAPANESE AND AN AMERICAN NATIONAL THE SPOKESMAN ADDED THE UNIT HAS ABOUT 15 BILLION IN ASSETS 9404110094 940411 STATES MOVE TO TOUGHEN BEERKEG LAWS IN ATTEMPT TO CURB UNDERAGE DRINKING BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL THE HIGH SCHOOL AND COLLEGE BEER BASH MAY BE GOING BUST A GROWING NUMBER OF LOCAL GOVERNMENTS ARE MOVING TO CURB BEER CONSUMPTION BY UNDERAGE DRINKERS THROUGH MONITORING BEERKEG SALES LAST WEEK THE MARYLAND LEGISLATURE SENT GOV WILLIAM DONALD SCHAEFER A MEASURE THAT WOULD REQUIRE BUYERS OF BEER KEGS TO REGISTER WITH LIQUOR STORES AND TAKE RESPONSIBILITY IF MINORS CONSUME THE BEER WASHINGTON OREGON MAINE AND VIRGINIA ARE AMONG OTHER STATES AND LOCALITIES THAT HAVE SIMILAR KEGREGISTRATION LAWS UNDER THE MARYLAND BILL WHICH GOV SCHAEFER IS EXPECTED TO SIGN A LIQUOR STORE COULD BE FINED 50 FOR THE FIRST OFFENSE OF SELLING AN UNREGISTERED KEG TO PERSONS UNDER THE AGE OF 21 AND A MINOR FOUND WITH AN UNREGISTERED KEG COULD BE FINED 250 ON FIRST OFFENSE THE GREATEST FINES OF 500 FOR FIRST OFFENSE ARE FOR ADULTS WHO HAVE UNREGISTERED KEGS OR WHO ALLOW REGISTERED KEGS TO BE USED BY MINORS ONE OF THE BIGGEST CONTRIBUTORS TO UNDERAGE DRINKING IS ADULTS SUPPLYING THE ALCOHOL SAID BONNIE HOLMES COORDINATOR FOR THE MARYLAND UNDERAGE DRINKING PREVENTION COALITION A GRASSROOTS OFFSHOOT OF THE GOVERNOR'S DRUG AND ALCOHOL ABUSE COMMISSION A KEG CONTAINS 155 GALLONS OF BEER EQUIVALENT TO ABOUT SEVEN OR EIGHT CASES AND TYPICALLY IS BOUGHT BY BARS AND RESTAURANTS TO SERVE DRAFT BEER LAST YEAR ABOUT 41 MILLION KEGS WERE SOLD ACCORDING TO THE BEER INSTITUTE A WASHINGTONBASED TRADE ASSOCIATION KEGS SOMETIMES CALLED BARRELS USUALLY ARE RENTED AND RETURNED TO LIQUOR STORES OR VENDORS THOUGH RESTAURANTS AND BARS DOMINATE THE KEG TRADE INDIVIDUALS BUY KEGS FOR PARTIES BECAUSE THEY'RE MUCH CHEAPER THAN CANS OR BOTTLES AND MANY OF THOSE KEGS FIND THEIR WAY TO PARTIES OR KEGGERS ATTENDED BY MINORS ERIC DANIELSON A RECENT MARYLAND HIGHSCHOOL GRADUATE RECALLS KEG PARTIES ATTENDED BY HUNDREDS OF STUDENTS WEEKLY SOME PARTIES WERE RAIDED BY POLICE WHO CARTED THE KIDS OFF IN BUSES AT ONE HE ATTENDED AS A SOPHOMORE AN OLD WOODEN PORCH WITH 75 KIDS COLLAPSED HURTING SEVERAL TEENAGERS INCLUDING HIMSELF THE LARGE NUMBER OF PEOPLE WERE ON THE PORCH BECAUSE THE KEG WAS THERE HE SAID WHEN THERE'S A KEG THERE'S MASS CONSUMPTION PEOPLE JUST DRINK DRINK DRINK MR DANIELSON SAID IT ISN'T THE SAME WITH CANS OR BOTTLES HE SAID PEOPLE GO CRAZY WHEN THERE'S A KEG UNDERAGE DRINKING IS A PARTICULARLY SERIOUS PROBLEM IN MARYLAND IN PART BECAUSE OF SOME PARENTS' ATTITUDE THAT ALL KIDS WILL DRINK MS HOLMES SAID LAST FALL IT CAME TO LIGHT THAT PARENTS IN AFFLUENT MONTGOMERY COUNTY WERE BUYING KEGS OF BEER FOR PARTIES HOSTED BY THEIR HIGHSCHOOL CHILDREN AT HOME MS HOLMES SAID THE PARENTS WHO ALSO RENTED BUSES TO TRANSPORT THE PARTY GOERS THOUGHT THEY WERE KEEPING THEIR KIDS SAFE BY PREVENTING DANGEROUS BEHAVIOR SUCH AS DRINKING AND DRIVING THE PARENTS WEREN'T ARRESTED BUT THE INCIDENTS RECEIVED A LOT OF MEDIA ATTENTION SHE SAID A 1992 MARYLAND SURVEY OF ADOLESCENTS FOUND THAT 59 OF 10TH GRADERS DRANK ALCOHOL IN THE PREVIOUS YEAR AND 31 ENGAGED IN BINGE DRINKING OF FIVE OR MORE DRINKS AT A SITTING STATE LIQUOR OFFICIALS SAY KEG REGISTRATION SHARPLY CUTS DOWN ON KEG PARTIES MAINE LIQUOR OFFICIALS ESTIMATE THAT THE NUMBER OF KEG PARTIES FELL BY 80 AFTER IT PASSED ITS KEGREGISTRATION LAW SALES OF ALCOHOL IN KEGS DECLINED BY HALF ACCORDING TO MAINE LIQUOR OFFICIALS IN A LETTER TO THEIR MARYLAND COUNTERPARTS IN WASHINGTON INCIDENTS OF ILLEGAL KEG PARTIES DECREASED SIGNIFICANTLY AROUND THE STATE'S TWO MAJOR UNIVERSITIES ACCORDING TO AN OFFICIAL OF THE STATE'S LIQUOR CONTROL BOARD IN A LETTER TO MARYLAND OFFICIALS A TAVERN NEAR WASHINGTON STATE UNIVERSITY ROUTINELY SOLD HUNDREDS OF KEGS A MONTH SOMETIMES 50 OR MORE IN ONE DAY BUT HAS DISCONTINUED KEG SALES SINCE THE KEGREGISTRATION LAW TOOK EFFECT IN 1989 ACCORDING TO THE STATE OFFICIAL THE OREGON RULE REQUIRING KEG BUYERS TO REGISTER HAS DISCOURAGED MINORS FROM TRYING TO BUY KEGS AND HAS ALLOWED THE STATE TO TRACK KEG BUYERS WHEN MINORS ARE FOUND TO BE DRINKING ACCORDING TO THE OREGON LIQUOR CONTROL COMMISSION IN A LETTER TO THE MONTGOMERY COUNTY MARYLAND BOARD OF LICENSING COMMISSION JEFFREY BECKER VICE PRESIDENT OF ALCOHOL ISSUES AT THE BEER INSTITUTE SAID THE TRADE ORGANIZATION DOESN'T HAVE A FORMAL POSITION ON THE ISSUE BUT THERE ARE LAWS AGAINST UNDERAGE DRINKING AND SERVING MINORS AND IF YOU'RE PREDISPOSED TO SERVE BEER TO A MINOR PACKAGING ISN'T THE OBSTACLE HE SAID 9404110093 940411 COSMIC COLLISION APPLE AND CARL SAGAN ARE BUTTING HEADS HE ROCKETS INTO COURT IRATE OVER A CODE NAME SOME THINK IT IS A FLAMEOUT BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO CARL SAGAN THE NOTED ASTRONOMER IS A FUNNY MAN JUST ASK HIS WIFE A LAUGH A MINUTE SHE SAYS OTHER PEOPLE HE DOESN'T ALWAYS FIND SO AMUSING FOR EXAMPLE HE DOES NOT CONSIDER HIMSELF A BUTTHEAD ASTRONOMER AND THOSE WHO HAVE INTIMATED THAT HE IS HAVE BEEN HAULED INTO COURT SUED BY UNSMILING LAWYERS THIS ALL BEGAN A FEW MONTHS AGO NERDS OVER AT APPLE COMPUTER INC WERE PUTTING TOGETHER SOME NEW COMPUTER MODELS CUSTOMARILY APPLE GIVES THESE MACHINES SECRET CODE NAMES DURING DEVELOPMENT AND REAL NAMES WHEN THEY ARE READY TO BE SOLD TO THE PUBLIC CODENAMING IS CONSIDERED AN HONOR YOU PICK A NAME OF SOMEONE YOU RESPECT EXPLAINS MARK MACGILLIVRAY A CALIFORNIA COMPUTER CONSULTANT APPLE HAS HAD COMPUTERS IN THE WORKS NAMED AFTER GEORGE GERSHWIN AND CHARLES LINDBERGH AND MORE RECENTLY SOMEBODY PLUCKED OUT DR SAGAN AS A CODENAME HONOREE THE NERDS REPORTEDLY JESTED MAYBE THE NAME WOULD BE LUCKY PROPELLING THE COMPUTERS TO SALES OF BILLIONS AND BILLIONS DR SAGAN OF COURSE IS KNOWN FOR HIS TV PROGRAMS ABOUT CELESTIAL EVENTS BILLIONS AND BILLIONS OF YEARS AGO SOMEBODY WROTE ABOUT THIS IN A COMPUTER MAGAZINE BUT WHEN DR SAGAN A CORNELL UNIVERSITY PROFESSOR LEARNED OF THE PURPORTED HONOR HE DIDN'T LAUGH HIS LAWYERS WROTE APPLE TO COMPLAIN THAT THIS WAS AN ILLEGAL USURPATION OF HIS NAME FOR COMMERCIAL PURPOSES FINE SAID APPLE BUT THE NERDS WERE MORE MISCHIEVOUS THEY CHANGED THE CODE NAME ALL RIGHT TO THE ABBREVIATION BHA WHEN INQUIRING MINDS ASKED WHAT THIS MEANT THEY SUPPOSEDLY WERE TOLD BUTTHEAD ASTRONOMER THIS TRAVELED AT LIGHT SPEED TO THE 59YEAROLD ASTRONOMER HE SUED APPLE LAST WEEK IN US DISTRICT COURT IN LOS ANGELES THE SUIT CONTENDS THAT CALLING DR SAGAN A BUTTHEAD ASTRONOMER IS DEFAMATORY ON ITS FACE AND HAS SUBJECTED HIM TO HATRED CONTEMPT RIDICULE AND OBLOQUY HE IS SEEKING UNSPECIFIED DAMAGES DR SAGAN WASN'T AVAILABLE AND HIS LAWYER DECLINED TO COMMENT APPLE WON'T EITHER THOUGH A SPOKESMAN CONTRARY TO PREVIOUS ACCOUNTS SAYS THE BHA DESIGNATION THAT REPLACED THE SAGAN CODE NAME WAS RANDOMLY CHOSEN SOME LAWYERS EXPECT DR SAGAN'S SUIT TO FLAME OUT IT IS DOUBTFUL THAT AN UNOFFICIAL CODE NAME IS A COMMERCIAL USE OF HIS NAME THEY SAY AND UNDER RECENT US SUPREME COURT RULINGS ON LIBEL IT IS UNLIKELY THAT BUTTHEAD WILL BE SEEN AS DEFAMATORY SAYS KEVIN BAINE A WASHINGTON LAWYER IF YOU REFER TO SOMEONE AS A BUTTHEAD ORDINARILY SPEAKING NO ONE IS GOING TO TAKE THAT AS ANY SPECIFIC CHARGE OF ANY IMPROPER CONDUCT OR INSINUATION OF ANY CHARACTER TRAIT HE SAYS A BIG QUESTION MR BAINE SAYS THAT WOULD HAVE TO BE ANSWERED AT TRIAL WHAT EXACTLY IS A BUTTHEAD ANYWAY AS PORTRAYED BY THE DEMONIC CHARACTERS ON MTV'S BEAVIS AND BUTTHEAD CARTOON SERIES A BUTTHEAD IS A WISECRACKING LOUT NOT SO SAYS LAID BACK ENTERPRISES IN OKLAHOMA CITY WHICH CLAIMS A TRADEMARK ON AN AMIABLE CARTOON CHARACTER NAMED BUTTHEAD WE CONSIDER OUR BUTTHEAD TO BE AN ENDEARING FUNLOVING GUY A SPOKESMAN SAYS 9404110092 940411 REVIEW & OUTLOOK EDITORIAL ASIDES FAIR SCIENCE CHALK ONE UP FOR SCIENCE IT SEEMS 12YEAROLD RUSSELL GRISBECK OF RAMONA CALIF SHOOK UP THE NANNY SQUAD WITH HIS SCIENCE PROJECT THE 12YEAROLD TESTED FIVE DIFFERENT COMPOSITE GUNPOWDERS TO SEE WHICH WOULD GIVE A BULLET THE GREATEST VELOCITY AND ACCURACY THE PROJECT ACCORDING TO GRISBECK'S SEVENTHGRADE SCIENCE TEACHER WAS WORTHY OF AN APLUS AND NOMINATION TO THE GREATER SAN DIEGO SCIENCE AND ENGINEERING FAIR BUT THE COMMITTEE OVERSEEING THE FAIR REJECTED YOUNG GRISBECK'S PROJECT SAYING SOME CHILDREN MIGHT GO HOME AND TRY THE EXPERIMENT THEMSELVES WHEN AN EVEN GREATER OUTCRY AROSE OVER HIS BEING BARRED FROM THE FAIR AND THE GRISBECKS BEGAN TALKING ABOUT LAWYERS THE COMMITTEE RECONSIDERED AND DECIDED THAT RUSSELL WOULD BE ALLOWED TO DISPLAY HIS WORK AT THE FAIR ONLY IN AMERICA COULD SOMETHING AS SIMPLE AS A SCIENCE FAIR PROJECT NEARLY LEAD TO LITIGATION 9404110091 940411 REVIEW & OUTLOOK EDITORIAL THE PENN FILE AN UPDATE FIRST THE NEWS FROM THEMORETHINGSCHANGETHEMORE THEYSTAYTHESAME DEPARTMENT THE UNIVERSITY OF PENNSYLVANIA IS THE SITE AS HARDLY ANYONE NEEDS TO BE TOLD OF THE FAMOUS ACADEMIC TRIAL OF FRESHMAN EDEN JACOBOWITZ HAULED BEFORE A CAMPUS JUDICIAL INQUIRY BOARD AND CHARGED WITH RACIST HARASSMENT FOR SHOUTING WATER BUFFALO AT SOME NOISY SORORITY WOMEN IN ITS JUST RELEASED OFFICIAL REPORT A BOARD OF INQUIRY EMPANELED BY INTERIM PROVOST MARVIN LAZERSON TO LOOK INTO THE PROCEDURAL ASPECT OF THE CASE HAS NOW CONCLUDED THAT THE JUDICIAL PROCEDURE FAILED THE WOMEN STUDENTS WHO BROUGHT THE CHARGES WHICH WERE WITHDRAWN THE CAUSE OF THIS DENIED JUSTICE THE REPORT'S WRITERS FIND WAS AN OUTSIDE ORGANIZATION SUCH AS THE AMERICAN CIVIL LIBERTIES UNION THE PRESS AND THE PUBLICITY THE CASE GENERATED IN SHORT IT IS APPARENTLY STILL THE VIEW OF PENN ADMINISTRATORS AND THEIR AGENTS THAT THE UNIVERSITY SHOULD HAVE BEEN ALLOWED TO PRESS A SPECTACULARLY LUDICROUS CASE UNDER ITS HARASSMENT CODE UNIMPEDED BY NOTICE OR COMMENT FROM THE OUTSIDE WORLD THE WRITERS OF THE PENN OFFICIAL REPORT GO ON TO REVEAL HOWEVER INADVERTENTLY JUST WHAT IT WAS ABOUT THE MEDIA SCRUTINY THAT WAS SO OBJECTIONABLE IN A REMARKABLE SUMMARY THE REPORT NOTES THAT THE HARASSMENT CODE CONTAINED FLAWS WHICH COULD NOT WITHSTAND THE STRESS OF INTENSE PUBLICITY AND INTERNATIONAL ATTENTION THAT ABOUT SUMS MATTERS UP IN OUR VIEW HERE'S TO MORE INTENSE PUBLICITY AND INTERNATIONAL ATTENTION FOR THE CAMPUSES OF AMERICA THEY COULD USE IT NOW FOR THE GOOD NEWS WHICH IS THAT AT THE UNIVERSITY OF PENNSYLVANIA THE STUDENTS AT LEAST HAVE AWAKENED TO THE THREAT POSED BY SPEECH AND THOUGHT POLICE CAMPUS TRIBUNALS AND THE LIKE IN THE ELECTIONS TO THE UNDERGRADUATE ASSEMBLY THIS YEAR EDEN JACOBOWITZ TARGET OF THE WATER BUFFALO PROCEEDINGS WON MORE VOTES THAN ANY OTHER CANDIDATE WHEN THE UNDERGRADUATE ASSEMBLY SELECTED ITS HEAD IT CHOSE NONE OTHER THAN AN OUTSPOKEN DEFENDER OF FREE SPEECH WHO HAPPENS ALSO TO BE PRESIDENT OF THE COLLEGE REPUBLICANS DAN DEBICELLA THIS OUTCOME WOULD HAVE BEEN UNTHINKABLE A YEAR AGO SAY THOSE WHO KNOW THE CAMPUS ATMOSPHERE WE TAKE HEART FROM THIS AS SHOULD THE STUDENTS AND TEACHERS AT COLLEGES AND UNIVERSITIES AROUND THE COUNTRY WHERE THE BATTLE TO UPHOLD DEMOCRATIC VALUES IS ONGOING WE ALSO HAVE A SUGGESTION WHICH IS THAT STUDENTS ON ALL THE NATION'S CAMPUSES TAKE PART IN A ONEDAY NATIONAL REFERENDUM ON POLITICAL CORRECTNESS WE HAVE A FEELING THE ADMINISTRATORS AND FACULTY NOW BUSY ADMINISTERING SPEECH CODES AND SENTENCING STUDENTS AND TEACHERS TO SENSITIVITY TRAINING OR HOLDING JUDICIAL HEARINGS ON NONSENSICAL IDEOLOGICAL OFFENSES MIGHT BE CHASTENED BY THE OUTCOME 9404110090 940411 REVIEW & OUTLOOK EDITORIAL SO LONG MORIHIRO IN STEPPING DOWN JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA ALLUDED TO YET MORE PROBLEMS WITH HIS PAST FINANCIAL DEALINGS THAT WOULD BE IN ADDITION TO A DUBIOUS 1982 LOAN FROM THE SAGAWA KYUBIN TRUCKING COMPANY AND HIS NICE LITTLE PROFIT IN THE NIPPON TELEPHONE PRIVATIZATION OVER THE WEEKEND THE FRIEND AND MONEY MANAGER MR HOSOKAWA CITED AT HIS VALEDICTORY PRESS CONFERENCE WAS REVEALED TO HAVE BEEN A CRONY OF THE LATE PRIME MINISTER TANAKA MR HOSOKAWA'S MENTOR AND A MAN NOT EXACTLY UNSULLIED BY THE SMELL OF GRAFT THE FRIEND WAS REPORTEDLY IN CHARGE OF MAKING QUESTIONABLE TRANSFERS FROM MR HOSOKAWA'S ACCOUNT TO A PUBLISHER FRIEND OF MR TANAKA WHAT A SHOCKER THAT SOMEBODY WHO GREW UP POLITICALLY IN THE RANKS OF THE LIBERAL DEMOCRATS SHOULD HAVE SOME DIRTY LINEN IN HIS HAMPER FOR REAL COMEDY THOUGH YOU CAN'T BEAT THE SURVIVING RUMP OF THE LDP WHIPPING THEMSELVES INTO A SELFRIGHTEOUS LATHER AND DEMANDING TO CROSSEXAMINE MR HOSOKAWA'S PERSONAL SECRETARY FROM THE EARLY EIGHTIES THIS THEY INSISTED ON BEFORE TAKING THEIR SEATS IN THE DIET AND PASSING THE OVERDUE NATIONAL BUDGET AS IF SOMEHOW THE TWO WERE RELATED MR HOSOKAWA WAS PERHAPS TOO OBSERVANT OF JAPANESE POLITICAL ETIQUETTE AND INSTEAD OF SUMMONING HIS COALITION TO ENACT THE BUDGET ALONE HE STEPPED DOWN SOME PUNDITS SUSPECT THE LDP SIMPLY WANTED TO MANUFACTURE A CRISIS IN ORDER TO GET IN ONE MORE ELECTION UNDER THE OLD RULES BUILT UP BY THE LDP ITSELF TO FAVOR ITS BRAND OF MONEY POLITICS AND ITS CONSTELLATION OF ULTRAENTRENCHED INTEREST GROUPS BUT THE MORE LIKELY RESULT OF JAPAN'S LEADERSHIP CRISIS WILL BE TO HASTEN THE REALIGNMENT OF JAPANESE POLITICS INTO A GENUINELY COMPETITIVE TWOPARTY SYSTEM WE WOULDN'T BE SURPRISED TO SEE THE YOUTHFUL MR HOSOKAWA BACK BEFORE LONG IT IS WORTH PARSING OUT THE CONNECTION BETWEEN MR HOSOKAWA AND THE OLD SYSTEM HE SOUGHT TO REFORM THE RELATIONSHIP BETWEEN POLITICIANS AND MONEY HAS BECOME A QUANDARY PLAGUING THE INDUSTRIALIZED WORLD ITALY HAS HANDED ITS REFORMIST HOPES OVER TO AN ENTREPRENEUR SILVIO BERLUSCONI WHO GREW RICH UNDER THE CORRUPT ANCIEN REGIME BILL AND HILLARY CLINTON WERE ENMESHED IN AN UNSAVORY POLITICOFINANCIAL NETWORK DURING THEIR ARKANSAS DAYS WHAT WE LEARN FROM ALL THESE CASES IS HOW HIGH THE BIDDING HAS GONE FOR THE FAVORS OF GOVERNMENT IN THE INDUSTRIALIZED WORLD IN JAPAN'S CARTELIZED ECONOMY IT HAS BEEN THE BUSINESS OF GOVERNMENT TO PICK WINNERS AND LOSERS THE RESULT IS THE KIND OF FINANCIAL SLEAZE THAT HAS BROUGHT DOWN THREE OF THE LAST FIVE JAPANESE PRIME MINISTERS ANOTHER HAVING BEEN KNOCKED OUT OF THE BOX BY A DISGRUNTLED GEISHA WHAT'S MORE THERE IS AN INTERESTING SIDELIGHT TO BE CULLED FROM MR HOSOKAWA'S APPARENT INSIDE TRACK ON NTT SHARES FROM WHAT WE STRONGLY SUSPECT WAS GOING ON WITH HILLARY CLINTON'S COMMODITIES TRADING FROM JAPAN'S FAMOUS RECRUIT SCANDAL FROM BCCI AND MUCH ELSE ALL THESE CASES SUGGEST THE UTILITY OF MODERN FINANCIAL MARKETS AS VEHICLES FOR MAKING SURE THAT LOWEARNING POLITICIANS SHARE IN THE REWARDS OF THE ECONOMIC ACTIVITIES THEY ARE SO WELL PLACED TO INFLUENCE THE SOLUTION FOR THIS PROBLEM IS NOT TO ENGAGE IN SOME HOPELESS QUEST FOR A MR CLEAN AS MR HOSOKAWA WAS REPUTED TO BE AND THE CLINTONS INSIST THEY ARE NOW AS THE JAPANESE HAVE SHOWN WITH THEIR REVOLVING PRIME MINISTERS VOTERS CAN RUN THROUGH POLITICIANS AT A FURIOUS CLIP IN SEARCH OF SOMEBODY WHO IS TRULY IMMUNE TO THESE TEMPTATIONS MUCH BETTER TO REMOVE THE TEMPTATIONS THEMSELVES AS MUCH AS POSSIBLE BY HAVING THE GOVERNMENT DISENTANGLE ITSELF FROM THE PRODUCTIVE ECONOMY LET COMPANIES AND ENTREPRENEURS LIVE AND DIE ACCORDING TO THEIR ABILITY TO PROVIDE VALUE FOR CUSTOMERS RATHER THAN BY THEIR ABILITY TO PERSUADE POLITICIANS TO TILT THE GAMEBOARD IN THEIR FAVOR THAT IS WHAT MR HOSOKAWA WAS ALL ABOUT AS HE PROVED BY HIS POLITICAL REFORM LAW BY HIS DECISION TO OPEN UP TO RICE IMPORTS BY HIS COMMITMENT TO WEAKENING THE POWER OF BUREAUCRATS AND STRENGTHENING THE FORCES OF COMPETITION IN ITALY SILVIO BERLUSCONI WAS ELECTED ON A SIMILAR PLATFORM OF TAXCUTTING DEREGULATION PRIVATIZATION AND VOUCHERIZING SOCIAL SERVICES BILL CLINTON MEANWHILE HAS BEEN RUNNING HARD IN THE OPPOSITE DIRECTION THE MOST BREATHTAKING EXAMPLE BEING HIS WIFE'S PLAN FOR POLITICIZING THE DELIVERY OF HEALTH CARE ONESEVENTH OF THE US ECONOMY NO ONE'S TALKED MUCH YET HOW THIS EXPANSION WOULD AVOID THE MONEY SCANDALS OF MEDICARE AND MEDICAID MR HOSOKAWA HAD BEEN TRYING TO MASSAGE HIS ODDBALL COALITION INTO A GENUINE REFORM PARTY IT COULD HARDLY HAVE HELPED THAT HE HAD TO UNDERTAKE THIS TASK AMID JAPAN'S STAGNANT ECONOMY AND THAT A GLOBALLY OBLIVIOUS CLINTON ADMINISTRATION DECIDED THIS WAS THE BEST TIME TO RAIN DOWN TRADE THREATS ON THE JAPANESE PRIME MINISTER BUT THE FATE OF JAPAN WILL BE DECIDED BY THE JAPANESE AND THE REFORMIST SPIRIT EMBODIED BY MR HOSOKAWA WILL NECESSARILY BECOME A TOUCHSTONE FOR HIS WOULDBE SUCCESSORS 9404110089 940411 BUSINESS BRIEF CENTEX TELEMANAGEMENT INC CONFIDENTIAL INFORMATION TO BE SHARED WITH MFS CENTEX TELEMANAGEMENT INC SAN FRANCISCO SAID IT AGREED TO SHARE CERTAIN CONFIDENTIAL INFORMATION WITH MFS COMMUNICATIONS CO WHICH LAST MONTH LAUNCHED AN UNFRIENDLY TAKEOVER ATTEMPT OF CENTEX AS PART OF THE AGREEMENT MFS OMAHA NEB EXTENDED ITS TENDER OFFER TO MAY 3 AND PROMISED TO REFRAIN FROM LITIGATION IN THIS PERIOD THE TENDER OFFER WAS SET TO EXPIRE TOMORROW IN A STATEMENT CENTEX SAID IT HAS BEGUN TO SHARE CONFIDENTIAL INFORMATION WITH UNNAMED THIRD PARTIES WHO ARE INTERESTED IN POSSIBLE BUSINESS COMBINATIONS AND STRATEGIC PARTNERSHIPS BOTH CENTEX AND MFS ARE TELECOMMUNICATIONS COMPANIES 9404110088 940411 THE OUTLOOK FED MOVED TOO SLOW ON INCREASING RATES BY ALAN MURRAY WASHINGTON WITH THE CLARITY OF HINDSIGHT IT NOW APPEARS THAT THE FEDERAL RESERVE HAS FALLEN BEHIND IN ITS JOB GIVEN THE CURRENT STRENGTH OF THE ECONOMY SHORTTERM INTEREST RATES SHOULD BE HIGHER THE FED'S TARDINESS IN RAISING RATES SHOULD COME AS NO SURPRISE FED CHAIRMAN ALAN GREENSPAN ALWAYS PREFERS TO WAIT GATHER MORE DATA AND BE ABSOLUTELY SURE OF HIS ANALYSIS BEFORE MAKING A MOVE BE IT TOWARD HIGHER OR LOWER RATES OVER TIME THAT HASN'T BEEN A BAD STRATEGY FOR A MAN WHOSE JOB IS AKIN TO DRIVING A CAR THROUGH THE REARVIEW MIRROR BUT IT IS HAZARDOUS WHEN THE ECONOMY TAKES A SHARP TURN THE FED'S SLOW RESPONSE TO SIGNS OF A DOWNTURN IN THE SUMMER AND FALL OF 1990 CAUSED IN PART BY MR GREENSPAN'S DESIRE TO HOLD OFF CUTTING RATES UNTIL CONGRESS COMPLETED ITS DEFICITREDUCTION PACKAGE PROBABLY PROLONGED THAT RECESSION AND ITS SLOW RESPONSE TO THE CURRENT UPTURN IN ECONOMIC ACTIVITY EXACERBATED BY A DESIRE TO AVOID UPSETTING FINANCIAL MARKETS COULD PROVE TROUBLESOME AS WELL THERE ARE SOME ANALYSTS OF COURSE WHO STILL ARGUE THE FED IS BEING TOO AGGRESSIVE AND THAT ITS TWO QUARTERPOINT MOVES TOWARD HIGHER SHORTTERM RATES THIS YEAR WERE UNNECESSARY THESE ANALYSTS CORRECTLY POINT OUT THAT THERE ARE NO SIGNS OF ACCELERATING INFLATION ON THE HORIZON THE PRICE REPORTS DUE THIS WEEK ARE EXPECTED TO SHOW INFLATION RUNNING AT AN ANNUAL RATE OF ROUGHLY 3 BUT THAT MISSES THE POINT THE REASON THE FED NEEDS TO RAISE INTEREST RATES NOW ISN'T TO COMBAT INCIPIENT INFLATION BUT TO STOP STIMULATING AN ECONOMY THAT NEEDS NO STIMULUS IT ISN'T TIME TO SLAM ON THE BRAKES BUT IT IS PAST TIME TO TAKE THE FOOT OFF THE ACCELERATOR THE FED'S POLICY COMMITTEE SEEMS TO SHARE THAT VIEW EVEN IF IT HAS BEEN SLOW TO ACT ON IT COMMITTEE MINUTES WHICH ARE RELEASED ROUGHLY SIX WEEKS AFTER THE GROUP MEETS ARE FILLED WITH DRY LANGUAGE ABOUT THE NEED TO MOVE MONETARY POLICY TO A DESIRABLE NEUTRAL STANCE AND AT A MEETING ON FEB 34 WHEN THE FED FINALLY MADE ITS FIRST SMALL STEP TOWARD HIGHER RATES COMMITTEE MEMBERS ARE SAID TO HAVE FELT THAT THE CURRENT POLICY POSTURE WHICH HAS BEEN IN EFFECT SINCE THE LATE SUMMER OF 1992 WAS HIGHLY STIMULATIVE AS EVIDENCED FOR EXAMPLE BY VERY LOW OR EVEN SLIGHTLY NEGATIVE REAL INFLATIONADJUSTED SHORTTERM INTEREST RATES INDEED SOME POLICY MAKERS AT THAT MEETING FAVORED AN IMMEDIATE HALFPOINT INCREASE IN SHORTTERM RATES BUT MR GREENSPAN'S MORE CAUTIOUS SUGGESTION PREVAILED LEFT UNCLEAR IS THE QUESTION OF JUST WHAT A NEUTRAL STANCE FOR MONETARY POLICY IS I DON'T THINK THERE IS A UNIQUE CLEAR SENSE OF WHAT NEUTRAL MEANS SAYS RICHARD SYRON WHO RECENTLY STEPPED DOWN AS HEAD OF THE FEDERAL RESERVE BANK OF BOSTON BUT IT IS HARD TO ARGUE EVEN WITH THE FED'S TWO MOVES THIS YEAR TO HIGHER RATES THAT ITS CURRENT POSTURE IS NEUTRAL THE FEDERALFUNDS RATE WHICH IS THE KEY SHORTTERM INTEREST RATE CONTROLLED BY THE FED NOW STANDS AT 35 AND INFLATION IS RUNNING AT ROUGHLY 3 THAT MEANS THE REAL INTEREST RATE THE RETURN AFTER INFLATION IS TAKEN INTO ACCOUNT IS ONLY 05 THAT IS WELL BELOW HISTORICAL EXPERIENCE SAYS BARRY BOSWORTH OF THE BROOKINGS INSTITUTION WHO ADDS THAT THE NORM IS 15 TO 2 REAL SHORTTERM RATES IN THE MIDDLE OF AN ECONOMIC EXPANSION LAURA TYSON WHO HEADS PRESIDENT CLINTON'S COUNCIL OF ECONOMIC ADVISERS ARGUES THAT THE AVERAGES MR BOSWORTH REFERS TO ARE DISTORTED BY THE UNUSUAL EXPERIENCE OF THE 1980S WHEN REAL RATES AVERAGED CLOSE TO 3 IF YOU LOOK AT DECADELONG SPANS OF POSTWAR EXPERIENCE EXCLUDING 1983 TO 1993 AVERAGES OF REAL INTEREST RATES HAVE ALWAYS BEEN BELOW 1 MS TYSON SAYS SEVERAL PRESENT AND FORMER FED POLICY MAKERS SUGGEST THE FED AIM FOR SOMETHING IN BETWEEN THE EXPERIENCE OF THE '50S AND THE EXPERIENCE OF THE 1980S AT THIS POINT IF YOU COULD GET THE FEDERALFUNDS RATE TO 4 THEN I THINK THE MARKETS WOULD BE QUIETED BY IT SAID FORMER FED GOVERNOR WAYNE ANGELL IN AN INTERVIEW WITH DOW JONES CAPITAL MARKETS REPORT LAST WEEK WHAT ARE THE CONSEQUENCES OF HOLDING RATES TOO LOW AT THIS STAGE OF THE ECONOMIC EXPANSION SOME ECONOMISTS INCLUDING THOSE IN THE CLINTON ADMINISTRATION ARGUE THEY ARE ALMOST NIL THE REASON THE BOND MARKET IS DOING THE FED'S WORK FOR IT THE RUNUP IN LONGTERM INTEREST RATES WHICH ARE CONTROLLED BY THE MARKETS NOT THE FED HAS ALREADY BOOSTED MOST OF THE KEY INTEREST RATES THAT AFFECT THE ECONOMY ANYONE TRYING TO BUY OR REFINANCE A HOUSE FOR INSTANCE KNOWS THAT MORTGAGE INTEREST RATES HAVE GONE UP MORE THAN ONE AND A HALF PERCENTAGE POINTS IN THE PAST FEW MONTHS TO 85 IT'S NOT THE FED WHO DID IT SAYS MR BOSWORTH BUT WHO CARES WHO DID IT FED OFFICIALS ON THE OTHER HAND ARE INTERESTED IN FINDING A BETTER EQUILIBRIUM THEY AREN'T LIKELY TO MOVE UNTIL FINANCIAL MARKETS SETTLE BUT ONCE CALM RETURNS THE FED WILL RESUME RAISING SHORTTERM INTEREST RATES AND HOPE THAT LONGTERM RATES COME DOWN AS THE BOND MARKETS BECOME CONVINCED THAT INFLATION REMAINS UNDER CONTROL 9404110087 940411 BUSINESS BRIEF SINGAPORE TELECOM PACT IS SIGNED WITH CHINA TO SPUR GREATER COOPERATION SINGAPORE TELECOM AND THE CHINESE GOVERNMENT HAVE SIGNED A MEMORANDUM OF UNDERSTANDING FOR GREATER COOPERATION IN TELECOMMUNICATIONS SERVICES BETWEEN THE TWO COUNTRIES A STATEMENT FROM SINGAPORE TELECOM SAID UNDER THE AGREEMENT BETWEEN THE COMPANY AND THE DIRECTORATE GENERAL OF TELECOMMUNICATIONS OF THE MINISTRY OF POSTS AND TELECOMMUNICATIONS THE TWO WILL WORK TOWARD RELIABLE ECONOMICAL AND EFFECTIVE TELECOMMUNCIATIONS SERVICES BETWEEN SINGAPORE AND THE PEOPLE'S REPUBLIC OF CHINA THE STATEMENT SAID THE STATEMENT SAID THE TWO WILL ALSO COOPERATE ON THE EXCHANGE OF INFORMATION ON TELECOMMUNICATIONS DEVELOPMENTS AND OPPORTUNITIES THE EXCHANGE OF INFORMATION IN TECHNICAL OPERATIONAL BUSINESS AND MARKETING AREAS THE DEVELOMENT OF JOINT STUDIES ON MARKETING AND TECHNICAL ISSUES AND THE DEVELOPMENT OF JOINT MARKETING 9404110086 940411 HEARD ON THE STREET BLOCKBUSTER SHARES DOWN SINCE VIACOM PACT ARE LOOKING LIKE A BUY' TO SOME MANAGERS BY GREG STEINMETZ AND ANITA SHARPE STAFF REPORTERS OF THE WALL STREET JOURNAL BLOCKBUSTER ENTERTAINMENT INSTEAD OF RISING LIKE A NORMAL TAKEOVER TARGET SANK AFTER THE COMPANY'S JANUARY AGREEMENT TO BE ACQUIRED BY VIACOM BUT NOW IT HAS FALLEN TOO FAR SOME MONEY MANAGERS SAY BLOCKBUSTER COULD RALLY TO 40 WITHIN 12 MONTHS FROM 25 7/8 FRIDAY SAYS FUND MANAGER RANDALL HAASE WITH ALLIANCE CAPITAL MANAGEMENT WHICH OWNS THREE MILLION BLOCKBUSTER SHARES AMONG THE REASONS BLOCKBUSTER DIVED WAS THE PROSPECT OF ITS STOCKSWAP MERGER WITH VIACOM A COMPANY THAT HAS JUST LOADED UP WITH DEBT TO BUY PARAMOUNT COMMUNICATIONS BUT NOW MR HAASE EXPECTS ONE OF TWO STOCKBUOYING THINGS TO HAPPEN TO BLOCKBUSTER 1 VIACOM SWEETENS THE TERMS 2 THE DEAL DIES AND BLOCKBUSTER CLIMBS TO A LEVEL JUSTIFIED BY ITS STRONG FUNDAMENTALS UNDER THE ACCORD BLOCKBUSTER HOLDERS WOULD SWAP THEIR HOLDINGS FOR A PACKAGE OF VIACOM CLASS A AND CLASS B SHARES WHICH HAVE DIVED SINCE VIACOM WON THE SEPARATE BIDDING WAR FOR PARAMOUNT VIACOM B IS DOWN TO 24 FROM ABOVE 40 IF THE MERGER CLOSED TODAY BLOCKBUSTER HOLDERS WOULD GET SECURITIES VALUED AT ONLY ABOUT 20 FOR EACH OF THEIR SHARES 11 LESS THAN WHERE BLOCKBUSTER WAS TRADING BEFORE IT AGREED TO MERGE AND 5875 LESS THAN FRIDAY'S PRICE NO RATIONAL SHAREHOLDER WOULD VOTE FOR SUCH A DEAL ALL OF WHICH EXCITES MR HAASE OWNING BLOCKBUSTER TODAY IS A LAYUP HE SAYS IF THE DEAL GOES THROUGH IT HAS TO GO THROUGH AT A HIGHER PRICE IF IT DOESN'T GO THROUGH THE STOCK GOES UP TOO LAWRENCE HAVERTY A MONEY MANAGER WITH STATE STREET RESEARCH IN BOSTON AGREES IF THE DEAL EXPLODES THE STOCK GOES TO BETWEEN 30 AND 35 HE SAYS ON FRIDAY GOLDMAN SACHS ISSUED A TRADING BUY RECOMMENDATION ON BLOCKBUSTER GOLDMAN IS AMONG THE ADVISERS TO VIACOM THERE ARE SOME SKEPTICS CLIFFORD KRAUSS A PORTFOLIO MANAGER WITH EATON VANCE SOLD BLOCKBUSTER STOCK AFTER THE COMPANY GOT INVOLVED IN THE PARAMOUNT FRENZY HE SAYS THE COMPLEXITY SURROUNDING THE THREEWAY COMBINATION OF VIACOM PARAMOUNT AND BLOCKBUSTER MAKES AN INVESTMENT DICEY NOW HE WOULD RATHER WAIT AND SEE BLOCKBUSTER CHAIRMAN WAYNE HUIZENGA HAS BEEN GROUSING TO ANALYSTS AND TO VIACOM ABOUT THE TERMS EACH BLOCKBUSTER SHARE WOULD BE SWAPPED FOR 060615 SHARE OF VIACOM CLASS B 008 OF VIACOM CLASS A AND DEPENDING ON THE PRICE OF VIACOM STOCK AS MUCH AS 013829 ADDITIONAL SHARE OF VIACOM B MR HUIZENGA AND HIS MANAGERS WHO CONTROL 23 OF BLOCKBUSTER ARE LEGALLY BOUND TO VOTE FOR THE MERGER BUT BLOCKBUSTER BULLS BELIEVE VIACOM WILL STILL FAIL TO GET THE NECESSARY MAJORITY VIACOM EXECUTIVES SAY THEY ARE STILL KEEN TO COMPLETE THE DEAL AND ARE REPLYING TO SECURITIES AND EXCHANGE COMMISSION COMMENT ON THE TELEPHONEBOOKSIZED PROXY STATEMENT BUT TENSION BETWEEN THE TWO SIDES IS MOUNTING VIACOM IS URGING BLOCKBUSTER TO EMBARK ON A ROADSHOW TO SELL THE DEAL TO THE STREET WHICH BLOCKBUSTER IS SAID TO BE REFUSING TO DO INSISTING VIACOM RENEGOTIATE FIRST PEOPLE CLOSE TO VIACOM SAY IT ISN'T RULING OUT A SWEETENED DEAL BUT VIACOM SAYS NO DECISION HAS BEEN MADE TO FISH OR CUT BAIT THE MERGER PLAN AROSE DURING THE BATTLE FOR PARAMOUNT VIACOM NEEDED ALLIES AND TO RAISE CASH QUICKLY SOLD NEW VIACOM SECURITIES TO BLOCKBUSTER FOR 185 BILLION WITH 10 BILLION OF LONGTERM DEBT VIACOM IS ATTRACTED TO BLOCKBUSTER'S CASH FLOW 522 MILLION LAST YEAR FOR BLOCKBUSTER THE MERGER PLAN SEEMED TO PRESENT A WAY TO CASH OUT BEFORE THE COMPANY GOT RUN OVER ON THE INFORMATION SUPERHIGHWAY BUT NOW THAT A NUMBER OF CABLE AND PHONECOMPANY MERGER PLANS HAVE COME UNGLUED INVESTORS SAY THE VIDEO RETAILERS DON'T HAVE TO WORRY ABOUT LOSING THEIR CUSTOMERS SO FAST THE MECHANISM THAT WILL PROVIDE COMPETITION HAS BEEN STALLED MR HAVERTY SAYS PAUL C MARSH AN ANALYST WITH NATWEST SECURITIES BELIEVES THE MASS MARKET FOR MOVIES ON DEMAND IS 10 TO 15 YEARS AWAY WITH 3593 VIDEO STORES BLOCKBUSTER HAS POSTED QUARTERLY EARNINGS INCREASES RANGING FROM 40 TO 64 IN THE PAST TWO YEARS ANALYSTS BELIEVE PERSHARE PROFIT WAS ABOUT 29 CENTS FOR THE FIRST QUARTER UP FROM THE YEARAGO 20 CENTS DIVERSIFICATION SHOULD HELP BLOCKBUSTER FANS SAY THE COMPANY OWNS SUCH MUSIC RETAILERS AS SOUND WAREHOUSE MUSIC PLUS TURTLE'S AND RECORD BAR LAST YEAR IT BOUGHT A CONTROLLING STAKE IN SPELLING ENTERTAINMENT GROUP WHICH PRODUCES THE HIT TV SHOW BEVERLY HILLS 90210 AND OWNS RIGHTS TO SUCH SHOWS AS DYNASTY BLOCKBUSTER IS NOT A COMPANY THAT WILL STAND STILL SAYS WILLIAM GARRISON AN ANALYST WITH STEIN ROE & FARNHAM IN CHICAGO IF THE DEAL DOESN'T GO THROUGH IT CONTINUES TO DEVELOP ITS VIDEO BUSINESS AND OTHER BUSINESSES 9404110085 940411 VIACOM MULLS SALE OF ARENA SPORTS TEAMS NYNEX SAID TO SHOW INTEREST IN THE KNICKS RANGERS MADISON SQUARE GARDEN BY JOHNNIE L ROBERTS AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL VIACOM INC FACED WITH THE POSSIBLE COLLAPSE OF ITS ACQUISITION OF BLOCKBUSTER ENTERTAINMENT CORP IS EXPLORING THE SALE OF MADISON SQUARE GARDEN AND THE NEW YORK KNICKS AND RANGERS SPORTS TEAMS PEOPLE FAMILIAR WITH THE SITUATION SAY VIACOM HAS ALREADY RECEIVED A NUMBER OF UNSOLICITED EXPRESSIONS OF INTEREST IN BUYING THE GARDEN AND THE TEAMS SHOULD THEY BE PUT UP FOR SALE THE PEOPLE SAID AMONG THE COMPANIES THAT HAVE INDICATED INTEREST IS REGIONAL TELEPHONE CONCERN NYNEX CORP WHICH HAS ALREADY INVESTED 12 BILLION IN VIACOM'S ACQUISITION OF PARAMOUNT COMMUNICATIONS INC IN EXCHANGE FOR NONVOTING PREFERRED STOCK IN THE COMBINED COMPANY VIACOM ACQUIRED THE GARDEN AND THE TEAMS AS PART OF ITS 96 BILLION PURCHASE OF PARAMOUNT VIACOM OFFICIALS DECLINED COMMENT STRESSING THAT THERE ARE NO ACTIVE TALKS ABOUT THE SALE OF THE GARDEN AND THE TEAMS WITH ANYONE AT PRESENT AND A NYNEX SPOKESMAN ALSO DENIED ANY ACTIVE TALKS NYNEX IS IN CONTINUOUS DISCUSSIONS WITH A VARIETY OF PARTNERS ON BUSINESS OPPORTUNITIES AND VIACOM IS CERTAINLY ONE OF OUR MOST IMPORTANT PARTNERS A NYNEX SPOKESMAN SAID BUT THERE ARE NO NEGOTIATIONS DISCUSSIONS OR TALKS WITH VIACOM ON THE POSSIBILITY OF A PURCHASE OF THE GARDEN IF ITS BLOCKBUSTER DEAL FALLS APART VIACOM WILL NEED TO SELL ASSETS TO RAISE CASH VIACOM HAS BEEN COUNTING ON BLOCKBUSTER'S HEFTY CASH FLOW TO HELP IT PAY DOWN DEBT FROM THE PARAMOUNT PURCHASE BUT A SHARP DROP IN VIACOM STOCK AFTER THE PARAMOUNT ACQUISITION HAS SHARPLY CUT THE VALUE OF VIACOM'S OFFER TO BLOCKBUSTER SHAREHOLDERS AND THE VIACOMBLOCKBUSTER DEAL IS WIDELY EXPECTED TO DIE IF IT ISN'T RENEGOTIATED ON TERMS MORE FAVORABLE TO BLOCKBUSTER SHAREHOLDERS PARAMOUNT'S MADISON SQUARE GARDEN WHICH ALSO INCLUDES THE MSG CABLE NETWORK HAS LONG BEEN REGARDED AS THE MOST LIKELY CANDIDATE FOR SALE SHOULD VIACOM BE FORCED TO SHED ASSETS THOUGH ANALYSTS ESTIMATE THAT THE GARDEN THE NETWORK AND THE TEAMS ONLY EARNED ABOUT 30 MILLION IN OPERATING PROFIT LAST YEAR THE KNICKERBOCKERS BASKETBALL TEAM AND RANGERS HOCKEY TEAM ARE CONSIDERED HOT PROPERTIES IN THE NEW YORK REGION AND SPORTS FRANCHISES OFTEN FETCH A PREMIUM SOME ANALYSTS ESTIMATE THE GARDEN AND THE TEAMS COULD FETCH BETWEEN 500 MILLION AND 1 BILLION NEW YORKBASED NYNEX IS SAID BY PEOPLE FAMILIAR WITH THE SITUATION TO BE INTERESTED IN THE GARDEN FOR THE ACCESS IT WOULD GIVE THE PHONE COMPANY TO EXCLUSIVE VIDEO RIGHTS TO THE TWO SPORTS TEAMS THOUGH NYNEX DOESN'T CURRENTLY HAVE A VIDEO NETWORK IT IS ALLOWED TO SELL PROGRAMMING TO THE HOME AND IT IS CURRENTLY TESTING THE SALE OF VIDEO SERVICES IN THREE NEW YORK APARTMENT BUILDINGS HOWEVER NYNEX HAS ALSO COME UNDER CRITICISM BY WALL STREET FOR ITS INVESTMENT IN VIACOM FOR WHICH IT RECEIVED NO ASSETS AND A NONVOTING SECURITY CONSUMER GROUPS IN NEW YORK HAVE ALSO BEEN CRITICAL OF THE COMPANY'S INVESTMENT SAYING IT WILL COME OUT OF THE HIDE OF TELEPHONE CUSTOMERS IT ISN'T CLEAR HOW EITHER CONSTITUENCY WOULD REACT TO A FURTHER INVESTMENT IN A SPORTS FRANCHISE AS PREVIOUSLY REPORTED PARAMOUNT PRESIDENT AND CHIEF OPERATING OFFICER STANLEY JAFFE HAS ALSO EXPRESSED INTEREST IN BUYING THE SPORTS TEAMS THOUGH HOW HE WOULD RAISE THE MONEY ISN'T CLEAR MR JAFFE IS CURRENTLY IN DIFFICULT SEVERANCE NEGOTIATIONS WITH VIACOM OVER THE TERMINATION OF HIS EMPLOYMENT AMONG THE ISSUES THE TWO SIDES ARE SQUABBLING OVER IS PARAMOUNT'S INSTALLATION OF A 12 MILLION SCREENING ROOM IN MR JAFFE'S NEW YORK HOME WHICH HE IS OBLIGATED TO EITHER PURCHASE OR ALLOW THE COMPANY TO REMOVE IF HE LEAVES UNTIL THESE ISSUES ARE RESOLVED NO DISCUSSIONS ABOUT THE GARDEN ARE LIKELY PEOPLE CLOSE TO VIACOM SAID MR JAFFE COULDN'T BE REACHED FOR COMMENT YESTERDAY LESLIE CAULEY CONTRIBUTED TO THIS ARTICLE 9404110084 940411 RETAILING BRIGHTER LIGHTS FEWER BARGAINS OUTLETS GO UPSCALE BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL JODI STERN WAS WILLING TO TRAVEL 50 MILES TO THE CARTER'S CHILDRENSWEAR OUTLET IN KENOSHA WIS TO BUY HER DAUGHTER QUALITY CLOTHES AT LOWER PRICES TO HER SURPRISE MS STERN FOUND THAT THE SAME RED FLOWERED OUTFIT SHE HAD BOUGHT FOR 8 AT A DEPARTMENT STORE NEAR HER HOME COST 12 AT THE OUTLET I ACTUALLY DO BETTER AT SOME NONOUTLET STORES SHE CONCLUDED ONCE BAREBONES WAREHOUSES FOR MANUFACTURERS' IMPERFECT OR EXCESS MERCHANDISE OUTLETS HAVE SWIFTLY EVOLVED INTO SPIFFY MALLS WHERE RETAILERS TRY TO OUTDO ONE ANOTHER'S ACCENT LIGHTING PRIVATE DRESSING ROOMS SNAPPY DISPLAYS AND GENEROUS RETURN POLICIES THESE DAYS OUTLET MALLS OFFER A RANGE OF GOODS AND SERVICES INCLUDING FIRSTRUN CLOTHING AT ALMOSTREGULAR PRICES CONSUMERS ARE BAFFLED AND SOME ARE FED UP THEY SAY OUTLET PRICES KEY TO DRAWING THEM MANY MILES FROM THEIR HOMES AREN'T LOW ENOUGH ANYMORE TO JUSTIFY THE TIME AND GAS MONEY DEPARTMENT AND SPECIALTY STORES WHICH HAVE RISEN TO THE CHALLENGE AND NOW OFFER COMPARABLE DEALS MAY BE REGAINING THE ADVANTAGE OF THEIR PROXIMITY TO SHOPPERS LAST WEEK DEPARTMENT STORES REPORTED SURPRISINGLY STRONG DOUBLEDIGIT SALES GAINS FOR MARCH OF COURSE PATIENT SEASONED SHOPPERS CAN STILL FIND GREAT DEALS IN OUTLETS WHICH IS WHY OUTLETS HAVE BEEN THE FASTEST GROWING RETAIL SEGMENT IN RECENT YEARS SALES LAST YEAR WERE 99 BILLION ABOUT 2 OF TOTAL RETAIL SALES THE NUMBER OF OUTLETS NATIONWIDE HAS MORE THAN TRIPLED OVER THE PAST SIX YEARS TO 10500 EVEN REGULAR RETAILERS LIKE GAP INC AND NORDSTROM INC HAVE OPENED OUTLET STORES MANUFACTURERS HAVE OPENED SO MANY OUTLETS THAT THEY CAN NO LONGER FILL THEM WITH IRREGULARS AND OVERRUNS NOW THEY'RE FORCED TO STOCK THESE OUTOFTHEWAY LOCATIONS WITH FIRSTRUN MERCHANDISEBRANDNEW GOODS FRESH FROM THE FACTORY THE GROWTH HAS PROBABLY BEEN TOO FAST SAYS GEORGE ROSENBAUM CHIEF EXECUTIVE OF LEO J SHAPIRO & ASSOCIATES A CHICAGO MARKET RESEARCH FIRM YOU CANNOT DEVELOP A CHAIN OF 80 STORES FOR MISTAKES ONLY NO MATTER HOW BAD YOU ARE MOREOVER DURING THE RECESSION MANY CAUTIOUS NONOUTLET RETAILERS CUT BACK ON THE NUMBER OF LINES THEY CARRIED AND HAVEN'T REINSTATED THEM THIS TOO FORCES MANUFACTURERS TO SELL THEIR FIRSTRUN MERCHANDISE IN OUTLETS WE STILL HAVE TO LIVE AND BREATHE SAYS DANNY FRIEDMAN PRESIDENT OF CROWN PACIFIC USA INC WHICH MAKES ACCESSORIES UNDER THE JONES NEW YORK LABEL MR FRIEDMAN SAYS CROWN PACIFIC SHIPS GOODS DIRECTLY TO JONES NEW YORK OUTLETS IT'S LIKE BEING IN YOUR OWN RETAIL BUSINESS HE SAYS GROUP USA A UNIT OF FIRST TRADING CORP OF SECAUCUS NJ IS A CHAIN OF SPACIOUS WELLLIT STORES CARRYING SEVERAL DIFFERENT APPAREL BRANDS IN 18 OUTLET MALLS NATIONWIDE THE STORES ARE SO GORGEOUS IT DOESN'T EVEN LOOK LIKE YOU'RE GETTING A DISCOUNT BOASTS A SPOKESWOMAN IT'S NOT REALLY AN OUTLET EITHER IT'S WELL SHE PAUSES WE DON'T KNOW WHAT TO CALL OURSELVES OUTLETS ARE BECOMING TOO SLICK TOO SOPHISTICATED TO BE VIEWED AS BARGAIN BASEMENTS IN THE MINDS OF CONSUMERS SAYS ELYSA LAZAR PUBLISHER OF OUTLET SHOPPING GUIDE AND A MONTHLY NEWSLETTER ABOUT BARGAINS IN THE NEW YORK CITY AREA WHEN THE OUTLET STORE IS NICER THAN THE STORES ON MADISON AVENUE THEN CONSUMERS KNOW THEY'RE PAYING FOR OVERHEAD THESE CONTRADICTORY MESSAGES ARE ALSO FELT IN THE SERVICE CONSUMERS GET AT OUTLET MALLS WHEN OUTLETS WERE SPARE WAREHOUSES THE SERVICE PEOPLE ACTUALLY WORKED IN THE FACTORY AND COULD ANSWER QUESTIONS ABOUT SAY WHY THE STITCHING ON A PAIR OF JEANS WAS IRREGULAR NOW SALES CLERKS ARE MUCH LIKE SALESPEOPLE ELSEWHERE PRICES ARE ANOTHER GIVEAWAY THAT OUTLETS HAVE CHANGED OUTLETMALL DEVELOPERS TYPICALLY REQUIRE THEIR TENANTS TO CUT LEAST 20 FROM THE SUGGESTED RETAIL PRICE BUT WHAT IS THE SUGGESTED RETAIL PRICE MANY STORES AREN'T TELLING THE AMERICAN TOURISTER OUTLET IN KENOSHA FEATURES A BRIEFCASE FOR 13495 WITHOUT REVEALING THE LIST PRICE SO THE DISCOUNT REMAINS A MYSTERY AN ANNTAYLOR OUTLET IN GURNEE MILLS MALL 45 MILES NORTH OF CHICAGO OFFERS A FORMFITTING SUMMER DRESS FOR 97 THE LIST PRICE A SALESWOMAN SAYS THE OUTLET HAS YET TO MARK DOWN THE NEW ARRIVAL DEPARTMENT STORES HAVE LEARNED TO COMPETE WITH OUTLETS BY OFFERING FREQUENT SALES THEY TYPICALLY START SALES IN THE 25TO30 RANGE AND THEN DROP PRICES EVEN FURTHER SO WHEN OUTLETS SKIMP ON DISCOUNTS THEY ARE DOING TRADITIONAL RETAILERS A BIG FAVOR SAYS MS LIEBMANN OF WSL MARKETING IF DEPARTMENT STORES RUN A SALE THE PRICES MIGHT BE LOWER THERE OFFERS A MANAGER OF KENOSHA'S PFALTZGRAFF OUTLET WHICH SELLS HOUSEWARES FOR ABOUT 20 OFF TOP DESIGNERS TYPICALLY OFFER MUCH DEEPER DISCOUNTS IN THEIR OUTLETS BUT THEY START FROM A MUCH HIGHER BASE A DONNA KARAN OUTLET ALSO IN KENOSHA MARKED DOWN A DRESSY IVORY JACKET TO 280 FROM 465 BUT SAYS A 19YEAROLD SHOPPER EMILY SCHLESINGER MY THEORY IS THAT HALF OF EXPENSIVE IS STILL EXPENSIVE THE RESULT CAN BE A RETAILING MISHMASH AND FEW GENUINE BARGAINS GURNEE MILLS IS AN ENORMOUS 200STORE MALL THAT HOUSES TWO FOOD COURTS DESIGNER OUTLETS REGULAR RETAILERS AND LOWEREND OUTLETS IS IT STILL AN OUTLET MALL YEAH WE'RE AN OUTLET PLUS A WHOLE LOT MORE SAYS KENT DIGBY SENIOR VICE PRESIDENT OF MILLS CORP THE MALL'S DEVELOPER SUCH HYBRIDS ARE TOO LARGE AND TOO UNDEFINED ARGUES STANLEY EICHELBAUM PRESIDENT OF MARKETING DEVELOPMENTS INC OF CINCINNATI THEY'RE REALLY MIXING UP MESSAGES SHARON O'NEIL ROAMING GURNEE MILLS WITHOUT SHOPPING BAGS SAYS HER COUSIN FROM OAKLAND CALIF WANTED TO SEE THE OUTLETS BUT MS O'NEIL A 24YEAROLD SALES REPRESENTATIVE PREFERS TO CATCH ACTUAL TOP QUALITY STUFF ON SALE NEAR HER HOME IN CHICAGO YOU COME HERE MORE TO SAY YOU'VE DONE IT SHE SAYS 9404110083 940411 WHO'S NEWS ATRIX LABORATORIES INC ATRIX LABORATORIES INC FORT COLLINS COLO WILLIAM C O'NEIL JR A DIRECTOR OF THIS DRUGDELIVERY CONCERN WAS NAMED CHAIRMAN SUCCEEDING JOHN HORAN 73 YEARS OLD WHO THE COMPANY SAID IS RETIRING MR O'NEIL 59 WHO HAD BEEN SERVING AS DIRECTOR OF ATRIX IS CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT OF CLINTRIALS RESEARCH INC OF NASHVILLE TENN 9404110081 940411 ECONOMY WOOLWORTH TO RETIRE COMMERCIAL PAPER AMID UNEASINESS ABOUT ITS FINANCES BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WOOLWORTH CORP IS PULLING OUT OF THE SHORTTERM COMMERCIALPAPER MARKET AMID SIGNS OF INVESTOR UNEASINESS ABOUT THE RETAILER'S FINANCIAL SITUATION THE COMPANY WILL INSTEAD USE ITS EXISTING BANKCREDIT LINES BELIEVED TO AMOUNT TO AS MUCH AS 15 BILLION TO RETIRE THE EXISTING COMMERCIAL PAPER THAT HAD BEEN USED TO FUND CONTINUING OPERATIONS BANKERS SAID THE CHANGE WHILE UNUSUAL DOESN'T SIGNAL ANY FINANCIAL CRISIS BUT BANKERS SAID THERE WAS CONCERN THAT INVESTORS WOULD SHUN WOOLWORTH'S COMMERCIAL PAPER A SHORTTERM OBLIGATION USED BY COMPANIES TO OBTAIN CASH AND HURT THE COMPANY'S CREDIBILITY ON WALL STREET EVEN MORE WOOLWORTH WOULDN'T COMMENT WE THINK IT'S A PRUDENT THING TO DO SAID PAM STUBING A RATINGS ANALYST AT MOODY'S INVESTORS SERVICE ABOUT THE DECISION TO WITHDRAW FROM THE COMMERCIALPAPER MARKET MOODY'S AND STANDARD & POOR'S ARE REVIEWING WOOLWORTH'S CREDIT RATING TWO WEEKS AGO THE RETAILER SURPRISED INVESTORS AND SUPPLIERS BY DISCLOSING THAT IT WAS INVESTIGATING ALLEGED ACCOUNTING IRREGULARITIES INTERNALLY THE COMPANY SAID IT WILL RESTATE QUARTERLY RESULTS FOR THE FISCAL YEAR ENDED JAN 29 THE COMPANY PREVIOUSLY SAID THAT WILLIAM K LAVIN ITS CHAIRMAN AND CHIEF EXECUTIVE AND CHARLES T YOUNG CHIEF FINANCIAL OFFICER WERE STEPPING ASIDE TEMPORARILY WOOLWORTH'S USE OF BANKCREDIT LINES WON'T HAVE ANY NEARTERM FINANCIAL IMPACT ALTHOUGH IT LIKELY WILL RAISE THE RETAILER'S BORROWING COSTS ANALYSTS SAID THE COMPANY WOULDN'T DISCLOSE ITS AMOUNT OF COMMERCIALPAPER OUTSTANDING BUT AS OF JANUARY IT HAD 533 MILLION IN SHORTTERM DEBT UP FROM 164 MILLION ONE YEAR AGO TOTAL CURRENT LIABILITIES THAT MATURE WITHIN ONE YEAR ARE JUST OVER 2 BILLION GOLDMAN SACHS AND JP MORGAN SECURITIES WOOLWORTH'S COMMERCIALPAPER DEALERS WOULDN'T COMMENT WOOLWORTH'S MOVE REFLECTS HOW FICKLE THE COMMERCIALPAPER MARKET CAN BE DURING TIMES OF FINANCIAL STRESS IN RECENT YEARS COMPANIES SUCH AS MARRIOTT CORP AND WESTINGHOUSE ELECTRIC CORP HAVE HAD PROBLEMS SELLING COMMERCIAL PAPER AND TURNED TO BANKS FOR THEIR SHORTTERM FINANCING JANET MANGANO A RETAIL ANALYST WITH BURNHAM SECURITIES VIEWED WOOLWORTH'S MOVE WITH SOME CONCERN BECAUSE THE COMPANY IS LIKELY TO FACE DEMANDS FOR CREDIT LATER THIS YEAR WE REALLY DON'T KNOW WHAT THEIR REAL CASH NEEDS ARE GOING TO BE IN 1994 MS MANGANO SAID BUT THEY ARE CERTAINLY GOING TO NEED CASH FOR SEASONAL PURCHASES OF INVENTORY STORE REMODELING AND FOR OPENING NEW STORES IF I WAS WOOLWORTH I WOULD WANT TO STAY ACTIVE IN THE CREDIT MARKETS WHILE ACKNOWLEDGING THAT WE REALLY DON'T KNOW WOOLWORTH'S FINANCIAL CONDITION MS MANGANO NOTED THAT WOOLWORTH'S OPERATING RESULTS WILL LIKELY IMPROVE THIS FISCAL YEAR FOLLOWING THE CLOSING OF NEARLY 1000 LARGELY UNPROFITABLE FW WOOLWORTH VARIETY AND KINNEY SHOE STORES WOOLWORTH BEGAN TALKS A MONTH AGO WITH ITS BANKS INCLUDING THE BANK UNITS OF JP MORGAN & CO CITICORP AND NATIONAL WESTMINSTER BANK PLC ABOUT A NEW CREDIT LINE OF AS MUCH AS 15 BILLION THE CREDIT REPLACES VARIOUS LINES INCLUDING THOSE THAT ARE BEING USED TO RETIRE THE COMMERCIAL PAPER THAT MATURES IN JUNE PATRICK M REILLY CONTRIBUTED TO THIS ARTICLE 9404110080 940411 BUSINESS BRIEF HYUNDAI GROUP TRADING ARM PLANS TO SELL TRANSFORMERS TO MALAYSIA HYUNDAI CORP THE TRADING ARM OF ONE OF SOUTH KOREA'S LARGEST CONGLOMERATES HYUNDAI GROUP SAID IT WILL SELL 18 TRANSFORMERS VALUED AT 16 MILLION TO THE MALAYSIAN GOVERNMENT HYUNDAI OFFICIALS SAID ALL OF THE TRANSFORMERS WILL BE DELIVERED TO THE MALAYSIAN GOVERNMENT BY JULY 1995 THEY WILL BE USED IN NINE SUBSTATIONS IN THE PASIR GUDANG AREA NOW UNDER CONSTRUCTION BY THE MALAYSIAN GOVERNMENT OFFICIALS SAID WITH THE EXPORT OF TRANSFORMERS TO MALAYSIA HYUNDAI HOPES TO EXPAND ITS MARKET TO SUCH COUNTRIES AS INDONESIA AND THAILAND OFFICIALS ADDED 9404110079 940411 INTERNATIONAL BRIEF SCANDINAVIAN AIRLINES SYSTEM CARRIER AGREES WITH UNIONS ON PLAN TO REDUCE COSTS SCANDINAVIAN AIRLINES SYSTEM SAID IT HAD REACHED AGREEMENT IN PRINCIPLE WITH UNIONS REPRESENTING ITS CABIN PERSONNEL ON A PLAN TO REDUCE COSTS BY 410 MILLION KRONOR 52 MILLION THE PLAN INCLUDES A PERMANENT CUT OF 682 FULLTIME JOBS SAS SAID IT EXPECTS TO SIGN A FINAL AGREEMENT THIS WEEK SAS SAID IT HOPED TO OFFER LEAVES OF ABSENCE PARTTIME WORK OR SEVERANCE PAY TO SOME OF THE LAIDOFF WORKERS BESIDES SLASHING JOBS THE COSTCUTTING PLAN INVOLVES REDUCED CREWS ON FLIGHTS FEWER DAYS OFF FOR CABIN PERSONNEL AND A FREEZE ON WAGES UNTIL MARCH 1 1995 SAS SAID OVERALL SAS WILL NOW REDUCE OPERATING EXPENSES BY 29 BILLION KRONOR THROUGH NEXT YEAR MAINLY THROUGH THE ELIMINATION OF 2900 JOBS OR ROUGHLY ONE OUT OF EVERY SEVEN OF THE 20000 FULLTIME EMPLOYEES SEPARATELY SAS SAID IT REACHED AGREEMENT IN PRINCIPLE WITH UNIONS TO PHASE OUT 250 TO 300 PILOT JOBS 9404110078 940411 SEC GIVES GUIDANCE ON CHALLENGES TO NEW RULE REJECTS VOLUNTARY STAY BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION OUTLINED PROCEDURES FOR THOSE PLANNING TO MOUNT LEGAL CHALLENGES TO A NEW RULE DESIGNED TO END PAY TO PLAY PRACTICES IN THE MUNICIPAL BOND MARKET THE SEC'S GUIDANCE CAME IN AN UNUSUAL ORDER RELEASED FRIDAY IN WHICH IT ACKNOWLEDGED THE INEVITABILITY OF JUDICIAL REVIEW OF THE RULE THE AGENCY ALSO REJECTED IMPOSING A VOLUNTARY STAY TO BLOCK THE RULE FROM TAKING EFFECT PENDING A COURT DECISION AND AMPLIFIED ON WHY IT THINKS THE RULE IS CONSTITUTIONAL ONE LAWSUIT ALREADY HAS BEEN FILED IN FEDERAL COURT IN ALABAMA BY BOND DEALER WILLIAM BLOUNT WHO ALSO HEADS ALABAMA'S DEMOCRATIC PARTY HE ATTACKS THE RULE AS UNCONSTITUTIONAL UNDER THE FIRST AMENDMENT THE SEC HAS MOVED TO DISMISS THIS SUIT AS IMPROPERLY FILED SAYING THE FEDERAL SECURITIES LAWS REQUIRE SUCH CHALLENGES TO BE FILED EXCLUSIVELY IN FEDERAL APPEALS COURTS IN ITS ORDER THE SEC SAID COURTS ARE GENERALLY PRECLUDED FROM GRANTING STAYS OF ITS RULES UNLESS AN APPLICATION FOR A STAY FIRST HAS BEEN FILED WITH THE COMMISSION THE SEC CONSIDERED WHETHER A VOLUNTARY STAY OF THE RULE WAS WARRANTED AND CONCLUDED IT WASN'T THE SEC SAID PARTIES APPLYING FOR STAYS SHOULD IDENTIFY THE PROVISIONS OF THE RULE BEING CHALLENGED AND THE REASONS WHY A STAY IS WARRANTED AND SHOULD DESCRIBE WITH SPECIFICITY THE NATURE OF ANY ALLEGED HARM OR INJURY IT ALSO PROVIDED GUIDANCE ON FILING DEADLINES RELEVANT TO WHICH FEDERAL APPEALS COURT OR COURTS WILL GET JURISDICTION OF CHALLENGES THE RULE WOULD BAR BOND DEALERS FROM DOING BUSINESS WITH A STATE OR LOCAL JURISDICTION WITHIN TWO YEARS OF MAKING A POLITICAL CONTRIBUTION TO AN OFFICIAL OF THE JURISDICTION THE RULE WAS PROPOSED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD A SELFREGULATORY BODY AND WAS APPROVED BY THE SEC LAST WEEK IT WON'T TAKE EFFECT UNTIL 10 DAYS AFTER THE SEC'S APPROVAL ORDER IS PUBLISHED IN THE FEDERAL REGISTER THE SEC SAID THE RULE ADDRESSED THE PROBLEM IN WHICH POLITICAL CONTRIBUTIONS ARE MADE TO STATE OR LOCAL OFFICIALS TO OBTAIN BOND BUSINESS IT SAID SUCH PRACTICES DIRECTLY AFFECT MUNICIPAL SECURITIES MARKETS BY INCREASING COSTS BORNE BY ISSUERS DEALERS AND ULTIMATELY INVESTORS BY CREATING ARTIFICIAL BARRIERS TO COMPETITION AND BY UNDERMINING UNDERWRITER AND MARKET INTEGRITY IN EXPLAINING WHY IT REJECTED A VOLUNTARY STAY THE SEC SAID IT SEES NO CONSTITUTIONAL BASIS FOR CHALLENGING THE DISCLOSURE AND RECORDKEEPING PROVISIONS OF THE RULE EVEN A SIGNIFICANT INTERFERENCE WITH THE RIGHTS PROTECTED BY THE FIRST AMENDMENT MAY BE JUSTIFIED BY A SUFFICIENTLY COMPELLING GOVERNMENT INTEREST SO LONG AS THE INTERFERENCE IS CLOSELY DRAWN TO AVOID UNNECESSARY ABRIDGEMENT OF THOSE PROTECTED RIGHTS THE SEC SAID IN ITS SEPARATE ORDER APPROVING THE RULE ITSELF PREVENTION OF FRAUD AND MANIPULATION AND THE APPEARANCE OF FRAUD AND MANIPULATION ARE COMPELLING GOVERNMENT INTERESTS 9404110077 940411 BUSINESS BRIEF LUKENS INC STEELPLATE CONCERN BLAMES WEATHER FOR 1STQUARTER LOSS LUKENS INC CITING THE HARSH WINTER SAID IT WILL POST A FIRSTQUARTER NET LOSS OF 20 CENTS TO 25 CENTS A SHARE IN THE YEARAGO PERIOD LUKENS RECORDED A NET LOSS OF 597 MILLION OR 407 A SHARE EXCLUDING A 659 MILLION CHARGE FOR AN ACCOUNTING ADJUSTMENT LUKENS HAD EARNINGS OF 62 MILLION OR 39 CENTS A SHARE IN THAT PERIOD THE WORST WINTER WEATHER ON RECORD SHARPLY LOWERED OUR PRODUCTION AND SHIPMENT RATES AND SIGNIFICANTLY DROVE UP OUR OPERATING AND MAINTENANCE COSTS DURING THE QUARTER SAID RW VAN SANT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COATESVILLE PA STEELPLATE MAKER BUT MR VAN SANT SAID WITH RETURNING PRODUCTIVITY A RISING BACKLOG AND FIRM PRICES AN IMPROVED SECONDQUARTER PERFORMANCE IS EXPECTED 9404110076 940411 SOFTWARE FIRMS TO POST GAINS IN PROFIT SALES MICROSOFT AND LOTUS ARE AMONG THOSE TO SHOW RISES IN LATEST QUARTER BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL AMID A PUNISHING INDUSTRY CONSOLIDATION MANY SOFTWARE COMPANIES ARE EXPECTED TO POST STRONG GAINS FOR THE QUARTER ENDED MARCH 31 MICROSOFT CORP THE BIGGEST SOFTWARE MAKER IS EXPECTED TO POST EARNINGS AND REVENUE GAINS WELL IN EXCESS OF 20 BETTY LYTER AN ANALYST AT MONTGOMERY SECURITIES SEES MICROSOFT OF REDMOND WASH POSTING EARNINGS OF 307 MILLION OR 101 A SHARE A GAIN OF 26 FROM THE PERSHARE EARNINGS OF A YEAR AGO SHE ESTIMATES THAT REVENUE ROSE 23 TO 118 BILLION FOR THE QUARTER MICROSOFT WHICH MAKES THE BASIC SOFTWARE THAT COMES WITH MOST PERSONAL COMPUTERS IS BENEFITING FROM CONTINUED STRONG PC SHIPMENTS MS LYTER SAID APPLICATION SALES HAVE BEEN STRONG WORLDWIDE AS WELL LOTUS DEVELOPMENT CORP ANOTHER BELLWETHER SUPPLIER OF PC SOFTWARE ALSO IS EXPECTED TO POST SOLID GAINS MARY MCCAFFREY AN ANALYST AT ALEX BROWN ESTIMATES THAT LOTUS WILL POST EARNINGS OF 198 MILLION OR 43 CENTS A SHARE UP 62 FROM 122 MILLION OR 29 CENTS A SHARE IN THE YEARAGO PERIOD MS MCCAFFREY EXPECTS REVENUE TO REACH 265 MILLION FOR THE QUARTER UP 17 FROM 227 MILLION LOTUS BEST KNOWN FOR ITS SPREADSHEET SOFTWARE IS BENEFITING FROM RAPIDLY RISING SALES OF A PROGRAM CALLED NOTES THAT HELPS WORKERS TO COLLABORATE ELECTRONICALLY THE NOTES SUCCESS IS HUGE SAID STEPHEN MCCLELLAN AN ANALYST AT MERRILL LYNCH IT'S BECOMING A WORLDWIDE CORPORATE STANDARD FOR COLLABORATION THE PICTURE AT LOTUS OF CAMBRIDGE MASS IS AIDED BY A COMPARISON WITH A WEAK FIRST QUARTER OF 1993 MS MCCAFFREY SAID ANOTHER SOFTWARE BEHEMOTH EXPECTED TO POST RESPECTABLE GAINS FOR THE FIRST QUARTER IS COMPUTER ASSOCIATES INTERNATIONAL A MAJOR SUPPLIER OF SOFTWARE FOR MAINFRAME COMPUTERS MR MCCLELLAN EXPECTS COMPUTER ASSOCIATES OF ISLANDIA NY TO REPORT A 15 INCREASE IN REVENUE AND NET INCOME OF 79 CENTS A SHARE UP FROM 57 CENTS A YEAR AGO GROWING FAR MORE QUICKLY THAN EITHER MICROSOFT OR LOTUS ARE SUPPLIERS OF TOOLS AND ENGINES THAT MANAGE LARGE AMOUNTS OF DATA AND MAKE IT POSSIBLE FOR SOMEONE WITH A PC TO EASILY RETRIEVE OR STORE SUCH DATA ON A LARGER COMPUTER WHICH ITSELF MAY SERVE AN ENTIRE ORGANIZATION THIS TREND CALLED DOWNSIZING IS LIFTING THE FORTUNES OF DATABASE COMPANIES SAID THERESE MURPHY AN ANALYST AT SMITH BARNEY SHEARSON SYBASE INC EMERYVILLE CALIF IS THE FASTESTGROWING PUBLICLY HELD DATABASE SOFTWARE COMPANY MS MURPHY EXPECTS THE COMPANY TO EARN 111 MILLION OR 21 CENTS A SHARE UP 79 FROM 62 MILLION OR 12 CENTS A SHARE IN THE YEARAGO PERIOD SHE EXPECTS SYBASE TO POST REVENUE OF 124 MILLION UP 55 FROM 80 MILLION MS MURPHY ANTICIPATES STRONG BUT LESS DAZZLING GROWTH AT INFORMIX CORP MENLO PARK CALIF SHE EXPECTS INFORMIX TO POST EARNINGS OF 14 MILLION OR 21 CENTS A SHARE UP 22 FROM 115 MILLION OR 17 CENTS A SHARE IN THE PRIOR YEAR SHE EXPECTS INFORMIX TO POST SALES OF 98 MILLION UP 27 FROM 77 MILLION SMALLER SOFTWARE COMPANIES WHICH AREN'T SELLING DOWNSIZING PRODUCTS ARE SEEING SLOWER GROWTH SYMANTEC CORP CUPERTINO CALIF IS ONE SUCH CONCERN MS LYTER EXPECTS THE COMPANY WHOSE FINANCIAL DATA WERE RESTATED RECENTLY TO ACCOUNT FOR AN ACQUISITION TO EARN 69 MILLION OR 22 CENTS A SHARE ON SALES OF 695 MILLION COMPARED WITH A LOSS OF 73 MILLION OR 25 CENTS A SHARE ON SALES OF 639 MILLION IN THE YEARAGO PERIOD IN THE MIDST OF A SHIFT IN ITS PRODUCT MIX FROM DESKTOP TO NETWORKING PROGRAMS SYMANTEC MUST RAMP UP THESE NEW PRODUCT LINES FASTER THAN THE DESKTOP BUSINESS DECLINES SAID PETER ROGERS AN ANALYST AT ROBERTSON STEPHENS & CO THAT'S GOING TO BE A VERY TRICKY THING FOR THEM 9404110074 940411 TAIWAN TRADE SURPLUS FELL BY 885 IN MARCH FROM THE YEAR BEFORE SPECIAL TO THE WALL STREET JOURNAL TAIPEI TAIWAN POSTED A TRADE SURPLUS OF 100 MILLION IN MARCH PLUNGING 885 FROM 860 MILLION A YEAR EARLIER THE MINISTRY OF FINANCE SAID THE MINISTRY SAID EXPORTS IN MARCH FELL 52 FROM THE YEAR BEFORE TO 7 BILLION AND IMPORTS INCREASED 57 TO 69 BILLION OFFICIALS ATTRIBUTED THE SHARP DECLINE IN THE TRADE SURPLUS TO THE SHRINKING SURPLUS WITH THE US AND TO THE DEFICIT WITH EUROPE TAIWAN'S SURPLUS WITH THE US PLUMMETED 735 TO 190 MILLION LAST MONTH EXPORTS TO THE US TOTALED 175 BILLION FALLING 121 FROM A YEAR EARLIER WHILE IMPORTS WERE UP 214 TO 156 BILLION MEANWHILE TAIWAN'S DEFICIT WITH EUROPEAN COUNTRIES STOOD AT 200 MILLION IN MARCH COMPARED WITH A SURPLUS OF 30 MILLION THE YEAR BEFORE THIS ISLAND'S DEFICIT WITH JAPAN ROSE 24 FROM A YEAR EARLIER TO 132 BILLION JAPAN REMAINED TAIWAN'S TOP SUPPLIER IN THE MONTH AS IMPORTS OF JAPANESE PRODUCTS TOTALED 209 BILLION UP 06 FROM A YEAR EARLIER EXPORTS TO JAPAN WERE 770 MILLION IN MARCH DOWN 22 TAIWAN REGISTERED A SURPLUS OF 158 BILLION WITH HONG KONG RISING 119 FROM MARCH 1993 EXPORTS TO HONG KONG CREPT UP 76 TO 168 BILLION WHILE IMPORTS WERE OFF 32 TO 100 MILLION 9404110073 940411 SMALL STOCK FOCUS MARKETS' TURMOIL DELAYS SOME OFFERINGS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL THE IPO PIPELINE IS BEGINNING TO CRACK SEVERAL INITIAL PUBLIC OFFERINGS HAVE BEEN DELAYED VICTIMS OF THE SPRINGTIME TEMPEST IN THE EQUITY MARKETS THE NEWISSUE DELAYS COME AS LITTLE SURPRISE TO MARKET PROS WHO HAD BEEN PREDICTING THAT MARKET TURMOIL WOULD SHAKE OUT SOME OF THE PLANNED EQUITY OFFERINGS REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION SUCH A SHAKEOUT PARTICULARLY OF THE LARGE NUMBER OF SMALLER OFFERINGS WOULD BE HEALTHY FOR THE OVERALL STOCK MARKET THEY SAY FOR EQUITIES TO STABILIZE AND MOVE HIGHER FRESH MONEY IS GOING TO HAVE TO GO BACK INTO STOCKS ALREADY IN THE MARKET AND NOT INTO LITTLEKNOWN AND TYPICALLY SPECULATIVE IPOS THESE MANAGERS ASSERT SO FAR THE NUMBER OF PLANNED OFFERINGS BEING SET ASIDE IS TINY COMPARED WITH THE BACKLOG OF SOME 100 OR SO DEALS SCHEDULED TO BE PRICED OVER THE NEXT SIX WEEKS AND CERTAINLY NO ONE IS PREDICTING THAT THE SIZZLING IPO MARKET IS HEADED FOR THE DEEPFREEZE BUT ROBERT NATALE WHO TRACKS THE IPO MARKET FOR STANDARD & POOR'S SAYS COMPANIES CONSIDERING GOING PUBLIC ARE BEING URGED TO MOVE QUICKLY THE IPO WINDOW WAS WIDE OPEN NOW IT'S CLOSED HALFWAY HE SAYS UNDERWRITERS ARE TRYING TO CONVINCE COMPANIES THAT THEY SHOULD GET THEIR DEALS OUT NOW BEFORE THE WINDOW CLOSES COMPLETELY WITH ANY SHARP MARKET DECLINE FROM HERE ESPECIALLY IN THE SMALLCAP MARKET THAT WINDOW COULD CLOSE WITH A BANG HE SAYS SO FAR THE DELAYED ISSUES INCLUDE OVERHEAD DOOR A MAKER OF AUTOMATIC GARAGE DOORS SCANVEC AN ISRAELI SOFTWARE COMPANY ANALYTICAL TECHNOLOGY A MAKER OF LAB INSTRUMENTS PGS INTERNATIONAL A BELGIAN BIOTECH COMPANY AND ALUMINUM AND SHEETSTEEL COMPONENT MAKER FABWELL INC ANALYSTS ALSO HAVE SPECULATED THAT A NUMBER OF METOO OFFERINGS OR THOSE COMPANIES TRYING TO MIMIC THE SUCCESSFUL LAUNCH OF COMPARABLE ISSUES THE LIKES OF BOSTON CHICKEN COULD HIT THE SKIDS MORGAN STANLEY IS THE LEAD MANAGER FOR THE OVERHEAD DOOR DEAL WHICH WAS SUPPOSED TO HAVE PRICED EARLY LAST WEEK FURMAN SELZ IS LEAD MANAGING THE SCANVEC ISSUE WHICH WAS DUE IN LATE MARCH ALEX BROWN IS THE CHIEF UNDERWRITER OF THE ANALYTICAL DEAL WHICH WAS SCHEDULED FOR PRICING IN EARLY APRIL AND MERRILL LYNCH IS UNDERWRITING THE PGS OFFERING WHICH WAS SCHEDULED TO BE PRICED TWO WEEKS AGO AT ELKHART INDBASED FABWEL ADVERSE MARKET CONDITIONS HAVE PUT THE OFFERING ON ICE AT LEAST FOR NOW ACCORDING TO THE COMPANY AND THE ISSUE'S LEAD MANAGER MCDONALD & CO WE'VE NOT PULLED IT ALTOGETHER SAYS JOHN GARDNER CHIEF FINANCIAL OFFICER THE MAIN REASON FOR THE MOVE WAS THE UNCERTAINTY THE TURMOIL AND THE VOLATILITY OF THE STOCK MARKET THE 25 MILLIONSHARE OFFERING HAD BEEN EXPECTED TO BE PRICED IN A RANGE OF 1214 A SHARE IN MID TO LATE MARCH IF THE STOCK MARKET STABILIZES AND RETURNS TO SOME DEGREE OF HEALTH WE'RE OPTIMISTIC WE COULD PRICE THE ISSUE LATER IN THE MONTH MR GARDNER SAYS HE ADDS THAT THE COMPANY HAS NO PLANS TO PRICE IT BELOW THE ORIGINAL RANGE THAT SAID THE FABWEL EXECUTIVE DOESN'T RULE OUT PULLING THE ISSUE ALTOGETHER IF THE MARKET DOESN'T REGAIN ITS UPWARD PUSH WE'RE GOING PUBLIC TO GET RID OF OUR DEBT BUT DO WE NEED THE PUBLIC OFFERING IN ORDER TO SURVIVE THE ANSWER IS NO HE SAYS DESPITE THE UNCERTAIN ENVIRONMENT FOR THOSE COMPANIES HOPING TO GO PUBLIC A NUMBER OF RECENTLY PRICED ISSUES HAVE POSTED UNEXPECTEDLY STRONG SHOWINGS IN THE SOCALLED IPO AFTERMARKET ANALYSTS SAY LEAR SEATING FOR EXAMPLE JUMPED NEARLY 17 ON ITS FIRST DAY OF TRADING THE MANUFACTURER OF AUTO AND TRUCK SEATS PRICED ITS 94 MILLIONSHARE ISSUE AFTER THE CLOSE WEDNESDAY AT 1550 NEAR THE BOTTOM OF ITS 1517 RANGE IT CLOSED THURSDAY AT 18125 WHERE IT ENDED THE WEEK ANALYSTS SAY THE STOCK'S STRONG PERFORMANCE IS TIED TO BULLISH NEWS COMING OUT OF DETROIT WHERE THE BIG THREE AUTO MAKERS ARE EXPERIENCING A SURGE IN SALES OTHER ISSUES SHOWING ROBUST FIRSTDAY AND AFTERMARKET PERFORMANCE HAVE BEEN APPLIED DIGITAL ACCESS A TELECOM EQUIPMENT MAKER WHICH WAS PRICED AT 12 ON MARCH 29 AND CLOSED FRIDAY AT 19 UP 25 CENTS ON THE DAY AND GULF SOUTH MEDICAL SUPPLY WHICH PRICED AT 16 ON MARCH 24 AND CLOSED FRIDAY AT 2375 UP 2125 OR NEARLY 10 ON THE DAY MR NATALE THE STANDARD & POOR'S ANALYST THINKS THE BESTPERFORMING IPOS IN THE MONTHS AHEAD WILL BE THOSE OF TECHNOLOGY AND ECONOMICALSENSITIVE COMPANIES WHETHER SUCH COMPANIES AS CCUBE MICROSYSTEM SCHEDULED TO BE PRICED AT 1416 IN MIDAPRIL GET A GOOD BOUNCE ON THEIR FIRST DAY OF TRADING WILL BE A BELLWETHER FOR THIS NOWMATURE NEWISSUE MARKET HE SAYS WHAT WILL MATTER MOST HOWEVER IS THE GENERAL TONE OF THE SMALL AND MIDCAP MARKET THE NEWISSUES MARKET TAKES ITS LEAD FROM THE OVERALL MARKET AS LONG AS SMALL CAPS OUTPERFORM THE S&P 500STOCK INDEX AND AS LONG AS THE RETURNS ARE POSITIVE ON A YEARTODATE BASIS FOR SMALL AND MIDCAPS THERE'LL BE CONTINUING DEMAND FOR NEW ISSUES HE PREDICTS WITH YEARTODATE RETURNS STILL SHOWING RED THOSE CONDITIONS ARE NOT BEING MET THE RUSSELL 2000 THE BROADEST GAUGE OF SMALLCAP PERFORMANCE IS DOWN 15 YEAR TO DATE A SMALLER DECLINE TO BE SURE THAN THE S&P WHICH IS DOWN MORE THAN 3 BUT THOSE CONDITIONS COULD BE MET A MONTH FROM NOW AND THAT'S WHY THERE REMAIN SO MANY FILINGS IN THE PIPELINE HE ADDS MS KILLIAN THE RENAISSANCE ANALYST SAYS SHE HAS HIGH EXPECTATIONS FOR TELEDANMARK THE DANISH TELECOM COMPANY BEING PRIVATIZED BY THE GOVERNMENT THE 126 MILLIONSHARE ISSUE IS EXPECTED TO BE PRICED AT 2083 TO 2386 AT THE END OF THIS MONTH WE SEE THIS HIGHQUALITY ISSUE AS ANALOGOUS TO THE BRITISH TELECOM OFFERING SHE SAYS THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCOMPANY STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES DECLINED 122 OR 050 TO 25473 FOLLOWING THREE SESSIONS OF GAINS DECLINING NASDAQ ISSUES OUTPACED ADVANCERS BY 1715 TO 1353 ON NASDAQ NATIONAL MARKET VOLUME OF 229518000 SHARES AND TOTAL VOLUME OF 268821000 ON THURSDAY NATIONAL MARKET VOLUME WAS 245213000 SHARES AND TOTAL TURNOVER WAS 284686000 FOR THE WEEK THE RUSSELL 2000 ADDED 362 OR 145 THE NASDAQ COMPOSITE GAINED 525 OR 071 AND THE DOW JONES INDUSTRIAL AVERAGE ROSE 383 OR 105 CONTINUUM JUMPED 1 1/8 TO 21 1/4 ON THE NEW YORK STOCK EXCHANGE LATE THURSDAY THE SOFTWARE COMPANY SAID IT ESTIMATES FISCAL FOURTHQUARTER REVENUE WILL EXCEED THIRDQUARTER REVENUE OF 648 MILLION BECAUSE OF THE EXECUTION OF MORE THAN 20 MILLION IN CONTRACTS IMPROVED EARNINGS BOOSTED COBRA GOLF 3 1/4 TO 31 3/4 AFTER THURSDAY'S CLOSE THE MAKER OF GOLF CLUBS SAID ITS FIRSTQUARTER NET INCOME WAS 48 CENTS A SHARE COMPARED WITH PRO FORMA EARNINGS OF 25 CENTS A YEAR EARLIER PONCE FEDERAL BANK GAINED 7/8 TO 8 1/2 THE PONCE PUERTO RICO COMPANY POSTED FIRSTQUARTER EARNINGS OF 42 CENTS A SHARE UP FROM 26 CENTS A YEAR EARLIER HORACE MANN EDUCATORS JUMPED 3 TO 28 1/2 BEFORE TRADING IN THE SECURITY WAS HALTED ON THE BIG BOARD IN MIDAFTERNOON A GROUP THAT HOLDS A 445 STAKE IN THE COMPANY SAID LIMITEDPARTNERSHIP AGREEMENTS WILL REQUIRE IT TO SELL OR DISTRIBUTE THE POSITION BY THE END OF THE YEAR AMONG NEW ISSUES CERPLEX GROUP JUMPED TO 12 FROM ITS OFFERING PRICE OF 11 LATE THURSDAY THE PROVIDER OF REPAIR SERVICES FOR ELECTRONIC EQUIPMENT SAID IT WILL USE PROCEEDS TO REPAY DEBT FOR POTENTIAL ACQUISITIONS AND FOR GENERAL CORPORATE PURPOSES OTHER GAINERS INCLUDED ELTRON INTERNATIONAL WHICH ADVANCED 7/8 TO 8 7/8 THE COMPANY RECEIVED A 26 MILLION FOLLOWON ORDER FROM UNITED PARCEL SERVICE OF AMERICA FOR BAR CODE PRINTERS TO BE DELIVERED THROUGH THIS YEAR PLANAR SYSTEMS GAINED 1 TO 10 1/2 THE COMPANY SAID IT RECEIVED A 1 MILLION RESEARCH CONTRACT FOR ADVANCED DEVELOPMENT OF FULLCOLOR FLATPANEL DISPLAYS WESTERN PUBLISHING GROUP DROPPED 2 3/4 TO 11 1/2 THE COMPANY SAID IT WASN'T STILL IN TALKS TO BE ACQUIRED AND THAT ITS BOARD HAD APPROVED THE SALE OF ITS GAMES AND PUZZLES BUSINESS TO HASBRO INC IN A TRANSACTION EXPECTED TO YIELD 105 MILLION IN CASH PROCEEDS HASBRO INCHED 1/4 HIGHER TO 35 3/4 ON THE AMERICAN STOCK EXCHANGE THE TECHNOLOGY SECTOR WAS ONE OF THE WEAKER SMALLSTOCK GROUPS MILTOPE GROUP A MICROCOMPUTER CONCERN SLIPPED 1/2 TO 3 TRIQUINT SEMICONDUCTOR AN INTEGRATEDCIRCUITS FIRM LOST 1 5/8 TO 13 1/8 AND COMPUTER NETWORK TECHNOLOGY A NETWORKING COMPANY DECLINED 13/16 TO 9 5/8 CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9404110072 940411 ECONOMY SHIPPERS MOVE GOODS DESPITE TEAMSTERS STRIKE ALTERNATIVE TRANSPORTATION HAS HELPED COMPANIES AVOID BIG DISRUPTIONS A WALL STREET JOURNAL NEWS ROUNDUP SHIPPERS ACROSS THE COUNTRY TURNED TO PACKAGE DELIVERERS AND NONUNION TRUCK COMPANIES AND GENERALLY WERE ABLE TO MOVE THEIR GOODS DESPITE THE TEAMSTERS' STRIKE AGAINST 22 CARRIERS THE STRIKE BY MORE THAN 75000 TEAMSTERS TRUCK DRIVERS AND DOCK WORKERS THAT BEGAN LAST WEEK HAS DELAYED SOME FREIGHT AND BOOSTED COSTS FOR SOME SHIPPERS BUT MANY SHIPPERS SAID THEY HAVE BEEN ABLE TO AVOID MAJOR DISRUPTIONS BY LINING UP ALTERNATIVE TRANSPORTATION IF IT'S NOT BUSINESS AS USUAL IT'S THE CLOSEST THING TO IT SAID DON SHINKLE A VICE PRESIDENT OF WALMART STORES INC THE NATION'S LARGEST RETAILER HE ADDED THAT NEARLY ALL WALMART SUPPLIERS WERE ABLE TO MAKE ALTERNATIVE ARRANGEMENTS MOSTLY WITH NONUNION TRUCKING FIRMS BUT THE INITIAL EASY GOING MAY SOON GIVE WAY TO LENGTHENING DELIVERY SCHEDULES AS THE STRIKE CONTINUES AGAINST THE LESSTHANTRUCKLOAD CARRIERS THE STRUCK COMPANIES WHICH CONSOLIDATE SHIPMENTS FROM A NUMBER OF SHIPPERS INTO SINGLE LOADS REPRESENT LESS THAN 10 OF THE NATION'S ANNUAL INTERCITY TRUCKING BILL OF ABOUT 150 BILLION THERE IS ONLY SO MUCH EXCESS CAPACITY OUT THERE AND SHIPPERS WILL BEGIN TO USE UP ALL THAT CAPACITY SAID ROGER HERMANN DIRECTOR OF TRANSPORTATION AT THE MALLINCKRODT SPECIALTY CHEMICALS CO UNIT OF MALLINCKRODT GROUP INC CARRIERS THAT ARE OPERATING WILL SEE THEIR OPERATIONS BOG DOWN BECAUSE THERE WILL BE MORE FREIGHT TO MOVE THAN THEY HAVE TRUCKS AND DRIVERS THERE WEREN'T ANY INDICATIONS OVER THE WEEKEND THAT THE TEAMSTERS STRIKE WOULD BE SETTLED SOON NO ADDITIONAL TALKS ARE SCHEDULED BETWEEN THE TEAMSTERS AND TRUCKING MANAGEMENT INC THE NEGOTIATING ARM FOR THE 22 COMPANIES A REQUEST BY SEVERAL OF THE SMALLER STRUCK COMPANIES TO RESUME OPERATIONS UNDER INTERIM AGREEMENTS WAS TURNED DOWN FOR NOW BY THE TEAMSTERS THE LARGEST CARRIERS CONSOLIDATED FREIGHTWAYS INC ROADWAY SERVICES INC YELLOW CORP AND ARKANSAS BEST CORP APPEARED READY TO WITHSTAND A LENGTHY STRIKE THIS IS OUR LAST BEST CHANCE TO GAIN SOME EFFICIENCIES AND FLEXIBILITY SAID ROBERT YOUNG III PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ARKANSAS BEST IN FORT SMITH ARK I DON'T THINK WE'LL HAVE THE OPPORTUNITY IN THE NEXT CONTRACT BECAUSE BY THEN OUR MARKET SHARE WOULD BE SO SMALL AND OUR COMPANIES SO WEAK IT WOULD BE TOO LATE BUT THERE'S A LIMIT TO HOW LONG MR YOUNG IS PREPARED TO HOLD OUT FOR THE PRODUCTIVITY GAINS HE SEEKS WE COULD WEATHER A MONTHLONG STRIKE BUT NOT TWO MONTHS HE SAID I WOULD RUN OUT OF CASH THE LARGE CARRIERS WANT TO EXPAND THE USE OF PARTTIME WORKERS AND CUT COSTS BY SHIFTING MORE LONGHAUL FREIGHT TO RAILROADS SUCH MOVES ARE NEEDED THEY SAY TO COMPETE WITH UNITED PARCEL SERVICE OF AMERICA INC THE LARGEST TEAMSTERS EMPLOYER WHICH HAS WIDE LATITUDE IN ITS USE OF RAIL TRANSPORTATION AND PARTTIMERS THE BIG LESSTHANTRUCKLOAD CARRIERS ALSO COMPLAIN THAT THEY ARE LOSING FREIGHT AND MARKET SHARE TO LOWERCOST NONUNION REGIONAL RIVALS TO MEET THE COMPETITION CONSOLIDATED FREIGHTWAYS ROADWAY AND TO A LESSER EXTENT YELLOW HAVE STARTED OR ACQUIRED THEIR OWN NONUNION REGIONAL CARRIERS INFURIATING THE TEAMSTERS MEANWHILE THE TEAMSTERS CONTINUED TO CLAIM SOLID WORKER SUPPORT FOR THE STRIKE THE TEAMSTERS WANT ENHANCED JOB SECURITY INCLUDING GREATER RESTRICTIONS ON DEVELOPMENT OF NONUNION OPERATIONS AND A LARGER PAYANDBENEFIT PACKAGE THAN MANAGEMENT HAS OFFERED THE UNION WHOSE MEMBERS RECENTLY TURNED DOWN A PROPOSED DUES INCREASE HAS 15 MILLION IN ITS STRIKE FUND ENOUGH TO LAST ABOUT A WEEK ONCE 200AWEEK BENEFITS KICK IN DURING THE SECOND WEEK OF A STRIKE THE UNION ALSO CLAIMS 80 MILLION IN LOAN GUARANTEES AND A SPOKESWOMAN SAID WE'RE PREPARED TO DO WHAT IT TAKES TO GET A GOOD CONTRACT ON TUESDAY CAROLINA FREIGHT CARRIERS WHICH EMPLOYS ABOUT 7000 TEAMSTERS ENTERED INTO AN INTERIM AGREEMENT ALLOWING THE COMPANY TO OPERATE DURING THE STRIKE ON FRIDAY THE TEAMSTERS CIRCULATED PORTIONS OF A LETTER FROM JIM CARLTON PRESIDENT OF CAROLINA FREIGHT CARRIERS TO TRUCKING MANAGEMENT URGING THAT IT CHANGE COURSE IN ITS CURRENT NEGOTIATIONS WITH THE TEAMSTERS AND RECONSIDER ITS DEMANDS FOR BINDING ARBITRATION AND LOWCOST PARTTIMERS CAROLINA FREIGHT CARRIERS WHICH ORIGINALLY SUPPORTED THOSE GOALS CONFIRMED IT SENT THE LETTER BUT DECLINED TO COMMENT THE COMPANY IS A UNIT OF CAROLINA FREIGHT CORP THE TEAMSTERS' AGREEMENT WITH CAROLINA FREIGHT CARRIERS HAS A CANCELLATION CLAUSE THAT ALLOWS THE UNION TO STRIKE THE COMPANY IF THE WALKOUT EXPANDS BUT IT'S NOT A THREAT WE'RE HOLDING OVER THEIR HEADS A TEAMSTERS SPOKESWOMAN SAYS MEANWHILE AMERICAN FREIGHTWAYS CORP HAS SEEN A 25 INCREASE IN BUSINESS SINCE THE STRIKE BEGAN WE'RE SCRAMBLING TO GET FREIGHT PICKED UP AND MOVED ON TIME BUT THERE WILL NATURALLY BE SOME DELAYS SAID SHERIDAN GARRISON CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF THE NONUNION CARRIER IN HARRISON ARK THE COMPANY IS LEASING SOME TRAILERS AND BOOSTING ITS USE OF RAIL SERVICES TO MEET DEMAND UNITED PARCEL SERVICE SAID IT HASN'T SEEN A NOTICEABLE INCREASE IN VOLUME YET BUT MANY SHIPPERS SAID THEY ARE SENDING FREIGHT TO THE BIG PACKAGE DELIVERER THE STRIKE IS CAUSING HEADACHES FOR MANY SHIPPERS ROBERT BOSCH A FARMINGTON HILLS MICH SUPPLIER OF FUEL SYSTEMS AND ANTILOCK BRAKES HAS SOME SUPPLIES STUCK IN TRANSIT IF THE STRIKE CONTINUES THE COMPANY MAY HAVE TO SHIP OTHER PARTS TO REPLACE THEM CATERPILLAR INC PEORIA ILL IS USING CARRIERS THAT AREN'T ON STRIKE TO SUBSTITUTE FOR ITS NORMAL SUPPLY SYSTEM BOOSTING SOME TRANSPORTATION COSTS FORD MOTOR CO HIRED VANS LAST WEEK TO RUSH AUTO PARTS TO ASSEMBLY PLANTS IN ONE CASE THE PARTS ARRIVED TWO HOURS BEFORE THE PLANT WOULD HAVE RUN OUT WE HAVE TO PAY MORE AND WORRY A LOT BUT SO FAR WE HAVE BEEN ABLE TO GET SHIPMENTS MOVED SAID CHARLES WILKINS FORD'S TRANSPORTATION DIRECTOR 9404110071 940411 EUROPE ADDS BRAINS TO SMART CARDS TO GET MODELS OF ELECTRONIC PURSES' 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 THESE DAYS 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 GOTTEN BEYOND THE TESTMARKETING STAGE BANKERS IN BRITAIN DENMARK BELGIUM SPAIN AND ELSEWHERE ARE ALREADY EXAMINING HOW THEY COULD FIT INTO SUCH A WIREDUP WORLD THEIR TENTATIVE ANSWER IS CALLED THE ELECTRONIC PURSE IT'S 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 SAYS JENS LINDBOE LARSEN VICE PRESIDENT FOR SYSTEMS DEVELOPMENT OF DANMONT A DANISH BANKING CONSORTIUM THAT'S PROMOTING SUCH A CARD THE CHIP CARD IS A KEY TO THE FUTURE IN THIS AREA HE SAYS THE MAIN IDEA IS THAT THEY'RE NEITHER CREDIT NOR DEBIT CARDS BUT CAN CARRY A RUNNING CASH BALANCE IN THEIR SILICON MEMORIES SWIPE THEM THROUGH A CARDREADER AT A SHOP BANK OR PAY TELEPHONE AND THE AMOUNT OF ANY PURCHASE IS AUTOMATICALLY DEBITED FROM THE CARD AND CREDITED TO THE MERCHANT NO CREDIT CHECKS OR TELEPHONE AUTHORIZATIONS ARE NEEDED THE MONEY IS EITHER ON THE CARD OR IT ISN'T WHAT HAPPENS NEXT DIFFERS WITH THE CARD DESIGNER WITH THE DANISH CARD YOU JUST TOSS IT OUT WHEN THE INITIAL 100KRONER 15 BALANCE IS DEPLETED UNDER A MOREAMBITOUS BRITISH SYSTEM MONDEX THE BALANCE IS REPLENISHED BY A VISIT OR A 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 SAYS TIM JONES CHIEF EXECUTIVE OF A JOINT VENTURE OF NATIONAL WESTMINSTER BANK PLC AND MIDLAND BANK PLC THAT'S PROMOTING THE MONDEX CARD SURE HE SAYS PEOPLE CAN SUBSCRIBE TO INDIVIDUAL ELECTRONIC SERVICES AND GET BILLS IN THE MAIL BUT THAT WON'T HANDLE MILLIONS OF FLEETING TRANSACTIONS SUCH AS ORDERING A VIDEO OR CHECKING A STOCK QUOTE AND SURE PEOPLE CAN QUOTE A CREDITCARD OR DEBITCARD NUMBER BUT IT COSTS 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 SIMPLY 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 PIPE DREAM AS INDUSTRY CRITICS CLAIM COMMERCIAL MULTIMEDIA SERVICES 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 9404110070 940411 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AMERICAN PUBLISHING CO A UNIT OF TORONTO PUBLISHING CONCERN HOLLINGER INC AN OFFERING OF 73 MILLION CLASS A SHARES AT AN EXPECTED 14 TO 16 PER SHARE WITH AN OVERALLOTMENT OPTION FOR 11 MILLION ADDITIONAL SHARES VIA SMITH BARNEY SHEARSON INC AG EDWARDS & SONS INC AND MERRILL LYNCH & CO FAMILY BARGAIN CORP AN OFFERING OF 3500000 SHARES OF ITS SERIES A CUMULATIVE CONVERTIBLE PREFERRED STOCK FTP SOFTWARE INC AN OFFERING OF 4000000 COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 600000 SHARES VIA MONTGOMERY SECURITIES ALEX BROWN & SONS INC AND COWEN & CO PROFESSIONAL BANCORP INC AN AMENDED OFFERING OF 7 MILLION OF CONVERTIBLE SUBORDINATED RESET NOTES AN INCREASE FROM THE PREVIOUS OFFERING OF 5 MILLION AND ANOTHER RECTIFIED OFFERING OF 250000 COMMON SHARES INSTEAD OF THE PREVIOUSLY ANNOUNCED 400000 SHARES WITH OPTIONS TO PURCHASE UP TO AN ADDITIONAL 1050000 OF NOTES AND UP TO AN ADDITIONAL 37500 COMMON SHARES FOR OVERALLOTMENTS TURBOCHEF INC AN INITIAL OFFERING OF 13 MILLION COMMON SHARES AT 5 A SHARE AND A SHAREHOLDER OFFERING OF AN ADDITIONAL 550000 SHARES VIA WHALE SECURITIES CO UGI UTILITIES INC A SHELF OFFERING OF UP TO 100 MILLION OF DEBT SECURITIES 9404110069 940411 PEPPER AND SALT WHEN I FINISH IT'LL BE A DONE DEAL IN TWO UNDER PAR TO SPRING RELATE AND MUDITATE WHAT IF WE RETURN TO NATURE AND SHE'S NOT THERE 9404110067 940411 BUSINESS BRIEF MARVEL ENTERTAINMENT GROUP INC COMIC BOOK PUBLISHER STOCK FALLS AFTER EARNINGS FORECAST SHARES OF MARVEL ENTERTAINMENT GROUP INC TUMBLED AFTER THE COMPANY SAID IT EXPECTED EARNINGS GROWTH FOR MAINLY THE SECOND HALF OF THE YEAR CONTRARY TO ANALYSTS' ESTIMATES MARVEL SAID DUE TO CHANGING TRENDS IN ITS REVENUE AND PROFIT MIX IT EXPECTS INCREASES PRIMARILY IN THE SECOND HALF OF 1994 MARVEL'S SHARES FELL 2 OR 95 TO CLOSE AT 19 IN NEW YORK STOCK EXCHANGE TRADING MARVEL A PUBLISHER OF COMIC BOOKS AND SUPPLIER OF SPORTS AND ENTERTAINMENT TRADING CARDS SAID IT AFFIRMED ANALYSTS' EARNINGS ESTIMATES OF BETWEEN 77 MILLION OR 74 CENTS A SHARE AND 81 MILLION OR 78 CENTS A SHARE FOR 1994 COMPARED WITH 56 MILLION OR 55 CENTS A SHARE IN 1993 BASED ON SALES TRENDS MARVEL SAID IT EXPECTS STRONG GROWTH IN SEVERAL UNITS TO OFFSET SOFTNESS IN PUBLISHING AND SPORTS CARDS 9404110066 940411 BUSINESS BRIEF ALUMINUM CO OF AMERICA FIRSTQUARTER LOSS TOTALED 1083 MILLION AFTER CHARGES ALUMINUM CO OF AMERICA POSTED A FIRSTQUARTER LOSS OF 1083 MILLION ON TWO BIG CHARGES COMPARED WITH EARNINGS OF 276 MILLION A YEAR AGO BUT EXCLUDING THE CHARGES THE PITTSBURGHBASED ALUMINUM COMPANY EARNED 96 MILLION OR 10 CENTS A SHARE ANALYSTS SAID ALCOA WAS ALSO AIDED BY ITS 51 STAKE IN ALCOA OF AUSTRALIA A RAW MATERIALS UNIT THAT CONTRIBUTED 29 MILLION TO THE QUARTER'S EARNINGS ALCOA REPORTED A LOSS OF 122 A SHARE COMPARED WITH NET INCOME OF 31 CENTS IN 1993'S FIRST QUARTER THE CHARGES INCLUDED 50 MILLION OR 56 CENTS A SHARE TO CLOSE A CALIFORNIA PLANT AND 679 MILLION OR 76 CENTS A SHARE TO COVER THE EARLY REDEMPTION OF 7 DEBENTURES DUE 2011 QUARTERLY REVENUE WAS 223 BILLION UP 5 FROM 213 BILLION A YEAR AGO 9404110065 940411 WALTER INDUSTRIES INC BONDHOLDERS SET PACT AMID BANKRUPTCY CASE NEW YORK WALTER INDUSTRIES INC'S BONDHOLDERS REACHED AN AGREEMENT TO SETTLE A DISPUTE AMONG CREDITORS ONE OF SEVERAL ISSUES IN THE TAMPA FLA HOMEBUILDER'S BANKRUPTCYLAW CASE WALTER INDUSTRIES FORMERLY JIM WALTER CORP WAS TAKEN PRIVATE BY KOHLBERG KRAVIS ROBERTS & CO IN A 1987 LEVERAGED BUYOUT FOR 24 BILLION WITHIN TWO YEARS IT FILED FOR PROTECTION UNDER FEDERAL BANKRUPTCY LAW UNDER ONE SETTLEMENT PLAN PENDING IN US BANKRUPTCY COURT BONDHOLDERS FOR SOME 11 BILLION OF DEBT WOULD GET PAID IN FULL IN SOME COMBINATION OF DEBT AND EQUITY WHEN WALTER INDUSTRIES EMERGES FROM BANKRUPTCYLAW PROCEEDINGS THE BONDHOLDERS' AGREEMENT ANNOUNCED FRIDAY DEFINED HOW THE DEBT WOULD BE ALLOCATED TO THE HOLDERS OF BONDS BEFORE THE BUYOUT AS WELL AS HOLDERS AFTER THE BUYOUT SAID DANIEL H GOLDEN A PARTNER AT NEW YORK LAW FIRM STROOCK & STROOCK & LAVAN AND COUNSEL FOR THE BONDHOLDERS' COMMITTEE THE COMMITTEE'S AGREEMENT IS ONE OF FOUR PLANS FILED WITH THE COURT AND IS INDEPENDENT OF THE COMPANY'S REORGANIZATION PLAN MR GOLDEN SAID THE AGREEMENT WAS REACHED BY THE ACACIA GROUP GABRIEL CAPITAL LP APOLLO ADVISORS AND LEHMAN BROTHERS INC HOLDERS OF SUBORDINATED BONDS ISSUED BY WALTER INDUSTRIES AND THE BANK OF NEW YORK AND MELLON BANK NA INDENTURE TRUSTEES FOR SUBORDINATED BONDS ISSUED BEFORE THE 1987 LEVERAGED BUYOUT 9404110064 940411 BUSINESS BRIEF CANADIAN HIGHWAYS INTERNATIONAL ONTARIO SELECTS COMPANY FOR 723 MILLION ROAD WORK THE ONTARIO GOVERNMENT SAID IT CONDITIONALLY CHOSE CANADIAN HIGHWAYS INTERNATIONAL CORP TO BUILD A 43MILE HIGHWAY LINKING THE ONTARIO CITIES OF OAKVILLE AND MARKHAM THE NEW HIGHWAY WHICH IS EXPECTED TO COST ABOUT ONE BILLION CANADIAN DOLLARS US723 MILLION WILL INCLUDE THE PROVINCE'S FIRST TOLL AND WILL REDUCE TRAFFIC CONGESTION IN THE TORONTO AREA CANADIAN HIGHWAYS IS EQUALLY OWNED BY FOUR COMPANIES AGRA INDUSTRIES LTD OF CALGARY ALBERTA BANISTER INC OF SCARBOROUGH ONTARIO ST LAWRENCE CEMENT INC OF MONTROYAL QUEBEC AND ARMBRO ENTERPRISES INC OF BRAMPTON ONTARIO A FINAL AGREEMENT BETWEEN THE GOVERNMENT AND CANADIAN HIGHWAYS WILL LIKELY BE REACHED BY EARLY MAY SAID AN OFFICIAL FROM AGRA WHICH WILL BE PROJECT MANAGER THE HIGHWAY IS PLANNED TO BE COMPLETED IN 1999 9404110063 940411 BUSINESS BRIEF FIRST CHICAGO CORP EARNINGS FOR FIRST QUARTER ARE SEEN STEADY TO HIGHER FIRST CHICAGO CORP SAID IT EXPECTS FIRSTQUARTER EARNINGS TO MEET OR BETTER YEAREARLIER RESULTS SAYING MOST OF ITS BUSINESSES CONTINUED TO PERFORM WELL AT THE BANK'S ANNUAL MEETING IN CHICAGO RICHARD L THOMAS CHAIRMAN ADDED THAT THE BANK'S CREDIT QUALITY ALSO CONTINUED TO IMPROVE HE ADDED THAT A 45 MILLION GAIN FROM ITS INVESTMENT IN NEXTEL COMMUNICATIONS INC AS WELL AS OTHER EQUITY SALES WERE MORE THAN SUFFICIENT TO OFFSET VERY NEGATIVE TRADING RESULTS DURING THE FIRST QUARTER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY FIRST CHICAGO GAINED 875 CENTS TO 50625 A SHARE FOR THE FIRST QUARTER OF 1993 FIRST CHICAGO REPORTED NET INCOME OF 1791 MILLION OR 197 A SHARE 9404110062 940411 TECHNOLOGY CREATIVE TECH GETS SOUND BOARDS TO FIT ONTO MICROCHIPS BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL MILPITAS CALIF CREATIVE TECHNOLOGY LTD HAS SHRUNK ITS POPULAR SOUND BOARDS FOR PERSONAL COMPUTERS DOWN TO A MICROCHIP A SOONERTHANEXPECTED MILESTONE IN ONE OF TECHNOLOGY'S MOST TURBULENT MARKETS THE COMPANY WHICH IS BASED IN SINGAPORE BUT HAS MAJOR OPERATIONS HERE SAID IT WILL HAVE SAMPLE SHIPMENTS THIS QUARTER OF CHIPS THAT DUPLICATE THE FUNCTIONS OF TWO SOUND BLASTER CIRCUIT BOARDS WHICH ALLOW PCS TO PLAY GAMES AND ENTERTAINMENT SOFTWARE WITH MOREVIVID SOUNDS PRICES WEREN'T DISCLOSED SOUNDBOARD SALES ARE EXPECTED TO MORE THAN DOUBLE TO 58 MILLION UNITS THIS YEAR MARKET RESEARCHER DATAQUEST INC ESTIMATES BUT PRICES HAVE FALLEN SHARPLY AND RETAIL SALES OF BOARDS ARE EXPECTED TO GIVE WAY TO CIRCUITRY BUILT INTO COMPUTERS CREATIVE ALREADY SELLS BOARDS TO PC MAKERS BUT HAS LAGGED ARCHRIVAL MEDIA VISION TECHNOLOGY INC OF FREMONT CALIF IN SHRINKING THAT TECHNOLOGY INTO A SET OF CHIPS ITS NEW TECHNOLOGY WHICH PUTS THE SAME FUNCTIONS INTO A SINGLE CHIP WASN'T EXPECTED UNTIL THE SECOND HALF OF THE YEAR ANALYSTS SAID KS CHAY CREATIVE'S PRESIDENT WOULDN'T DISCLOSE POTENTIAL CUSTOMERS BUT PREDICTED THE CHIP WOULD ALLOW THE COMPANY TO EXTEND ITS SALES LEAD IF THEY PRICE IT AGGRESSIVELY I THINK THIS WILL HAVE A BIG IMPACT ON MEDIA VISION BECAUSE THEY'VE BEEN THE ONLY GAME IN TOWN SAID BRUCE RYON AN ANALYST AT DATAQUEST INC A SAN JOSE CALIF MARKETRESEARCH CONCERN BUT MEDIA VISION IS EXPECTED TO SHRINK ITS OWN SOUND TECHNOLOGY TO A SINGLE CHIP LATER THIS YEAR POSSIBLY BY THE TIME CREATIVE BEGINS VOLUME SHIPMENTS WE ARE ON THE SAME INTEGRATION PATH SAID SATISH GUPTA THE COMPANY'S VICE PRESIDENT OF STRATEGIC MARKETING AND DEVELOPMENT CREATIVE'S NEW CHIPS REPLICATE ITS SOUND BLASTER PRO AND SOUND BLASTER 16 BOARDS A THIRD CHIP DUPLICATES FUNCTIONS OF A NEWER BOARD FROM CREATIVE'S EMU SYSTEMS SUBSIDIARY THAT USES THE SAMPLING TECHNIQUE OF MUSICAL SYNTHESIZERS TO CREATE MORE REALISTIC SOUND 9404110061 940411 WHO'S NEWS VERONIS SUHLER & ASSOCIATES INC VERONIS SUHLER & ASSOCIATES INC NEW YORK GENE F JANKOWSKI A FORMER PRESIDENT AND CHAIRMAN OF CBS INC'S BROADCAST GROUP WAS NAMED MANAGING DIRECTOR SPECIALIZING IN ELECTRONIC MEDIA AT THIS INVESTMENTBANKING FIRM MR JANKOWSKI 57 YEARS OLD WAS MOST RECENTLY CHAIRMAN OF JANKOWSKI COMMUNICATIONS SYSTEMS INC A NEW YORK INVESTMENTBANKING FIRM 9404110059 940411 POLITICS & POLICY BROKER RECALLS MRS CLINTON'S TRADING DENIES HER PROFIT WAS FROM FAVORITISM BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL BELLA VISTA ARK HILLARY RODHAM CLINTON'S FORMER COMMODITY BROKER SAYS HE NOW RECALLS THAT SHE TRADED CATTLE FUTURES THROUGH HIS BROKERAGE OFFICE IN THE LATE 1970S BUT DENIES THAT MRS CLINTON'S 99000 PROFIT ON A 1000 INVESTMENT WAS THE RESULT OF FAVORITISM I RESENT THE INSINUATION THAT I EVER GAVE ANYBODY PREFERENTIAL TREATMENT OR DID ANYTHING DISHONEST ROBERT L RED BONE SAID IN AN INTERVIEW AT HIS HOME HERE SHE ABSOLUTELY WAS NOT THE ONLY POLITICALLY PROMINENT PERSON WHO TRADED AND SOME OF THEM DID EVEN BETTER THAN HILLARY CLINTON MRS CLINTON OPENED HER ACCOUNT AT MR BONE'S SPRINGDALE ARK BRANCH OF THE CHICAGOBASED BROKERAGE HOUSE REFCO INC IN 1978 A MONTH BEFORE HER HUSBAND WAS ELECTED TO HIS FIRST TERM AS ARKANSAS GOVERNOR SHE EARNED A PROFIT OF MORE THAN 500 ON HER FIRST DAY OF TRADING REAPING 5300 ON THE 1000 INVESTMENT SHE NEVER INVESTED MORE THAN THE INITIAL 1000 BUT WITHDREW A TOTAL OF 99000 IN PROFITS OVER THE NEXT 10 MONTHS TRADING RECORDS SHOW MR BONE PREVIOUSLY SAID HE DIDN'T RECALL HANDLING MRS CLINTON'S COMMODITY TRADES BUT IN THE INTERVIEW AT HIS HOME LAST FRIDAY HE SAID READING NEWS ACCOUNTS OF THE TRADES HELPED HIM TO REMEMBER HE SAID MRS CLINTON WAS PART OF A GROUP OF INVESTORS REFERRED TO HIS BROKERAGE OFFICE BY JAMES BLAIR A PROMINENT ARKANSAS ATTORNEY WHO WAS OUTSIDE COUNSEL TO TYSON FOODS INC AT THE TIME DURING THE PEAK OF AN EXTRAORDINARY BULL MARKET IN CATTLE ASKED WHO DIRECTED MRS CLINTON'S TRADING DURING THOSE MONTHS MR BONE SAID I THINK SHE WAS MORE OR LESS WITH MR BLAIR THE WHITE HOUSE ACKNOWLEDGED THIS WEEKEND THAT MR BLAIR HAD PLACED THE ORDERS FOR MOST OF MRS CLINTON'S CATTLE FUTURES TRADES THE WHITE HOUSE HAD PREVIOUSLY PORTRAYED MR BLAIR AS AN IMPORTANT ADVISER TO MRS CLINTON BUT DIDN'T REVEAL THAT HE CONTACTED THE BROKER FOR TRADES ON THE ACCOUNT THIS ARRANGEMENT WAS FIRST REPORTED BY THE WASHINGTON POST YESTERDAY IN THE FIRST EXTENSIVE INTERVIEW MR BONE HAS GRANTED SINCE MRS CLINTON'S COMMODITY TRADING BECAME KNOWN HE SAID HE HASN'T BEEN CONTACTED BY WHITEWATER SPECIAL COUNSEL ROBERT FISKE NOR MR BONE SAID WOULD HE WELCOME SUCH AN INQUIRY THEY'D HAVE TO SUBPOENA ME HE SAID THOUGH STAUNCHLY DENYING HE SHOWED PERSONAL FAVORITISM TOWARD MRS CLINTON MR BONE ACKNOWLEDGED WIDESPREAD USE OF THE CONTROVERSIAL PRACTICE OF BLOCK TRADING IN HIS BRANCH OFFICE AT THE TIME MRS CLINTON WAS TRADING THERE BLOCK TRADING OR ENTERING CUSTOMER ORDERS FOR FUTURES CONTRACTS EN MASSE AND PARCELING OUT THE TRADES LATER WAS STANDARD OPERATING PROCEDURE A TIMESAVING DEVICE MR BONE SAID THE PRACTICE SINCE HAS BECOME ILLEGAL BECAUSE OF REGULATORY CONCERNS THAT IT CAN BE USED TO DISBURSE WINNING TRADES TO FAVORED CUSTOMERS' ACCOUNTS WHILE DUMPING LOSING TRADES ELSEWHERE WHEN ENTERING A BLOCK TRADE MR BONE SAID I KNEW WHAT EVERY CUSTOMER WAS GOING TO GET AT THE TIME I PLACED THE ORDER NOBODY EVER GOT PREFERENTIAL TREATMENT FROM OLD RED HE SAID IT WAS POSSIBLE HE HAD PLACED SOME OF MRS CLINTON'S TRADES AS PART OF SUCH A BLOCK BUT HE DIDN'T SPECIFICALLY RECALL DOING SO HE SAID HE HASN'T RETAINED ANY OF THE RECORDS FROM MRS CLINTON'S TRADES ASKED ABOUT ALLEGATIONS IN CIVIL LAWSUITS THAT HE SOMETIMES PLACED ORDERS ON BEHALF OF HIS CUSTOMERS IN THE BRANCH WITHOUT THEIR PRIOR APPROVAL MR BONE SAID YOU'RE TRYING TO TRADE IT'S A FAST GAME MR BONE WAS DISCIPLINED BY COMMODITYMARKET REGULATORS FOR A VARIETY OF INFRACTIONS IN THE LATE 1970S AND EARLY 1980S IN 1977 THE COMMODITY FUTURES TRADING COMMISSION SUSPENDED HIS PERSONAL TRADING PRIVILEGES FOR A YEAR FOR PARTICIPATING IN AN ATTEMPT TO MANIPULATE THE CHICAGO MERCANTILE EXCHANGE'S EGG MARKET IN 1979 THE MERC SUSPENDED MR BONE'S TRADING PRIVILEGES AT THE EXCHANGE FOR THREE YEARS FOR SERIOUS AND REPEATED VIOLATIONS OF RECORDKEEPING FUNCTIONS ORDERENTRY PROCEDURES MARGIN REQUIREMENTS AND HEDGE PROCEDURES AND IN 1981 THE CFTC DISCIPLINED MR BONE AGAIN FOR VIOLATING THE TERMS OF HIS FIRST ONEYEAR TRADING PROHIBITION IN THAT CASE MR BONE AGREED TO A 100000 FINE A THREEYEAR TRADING PROHIBITION AND A ONEYEAR REVOCATION OF HIS COMMODITY BROKERAGE LICENSE IN 1985 MR BONE FILED FOR PERSONALBANKRUPTCY PROTECTION CITING MILLIONS OF DOLLARS IN DEBTS TO COMMODITYTRADING FIRMS AND OTHERS HE NOW SAID HE DOESN'T OWE ANYBODY ANYTHING AND ADDED THAT HE CONTINUES TO TRADE IN FUTURES MARKETS INCLUDING CATTLE OTHER COMMODITIES AND EVEN SOCALLED FINANCIAL FUTURES CONTRACTS BASED ON US TREASURY BONDS STOCKS AND OTHER ASSETS MR BONE 60 YEARS OLD IS IN THE PROCESS OF MOVING OUT OF HIS TIDY BRICK HOME IN RURAL ARKANSAS HE SAID HE PLANS TO RETURN TO MISSOURI WHERE HE WAS BORN AND OPEN A BUSINESS THOUGH HE WON'T SAY WHAT KIND I HAVE TO STAY ACTIVE HE SAID MICHAEL K FRISBY IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9404110058 940411 BUSINESS BRIEF KIA MOTORS CORP SOUTH KOREAN AUTO AFFILIATE IS DISCUSSING HITACHI VENTURE KIA PRECISION WORKS CO AN AFFILIATE OF SOUTH KOREAN CONGLOMERATE KIA MOTORS CORP SAID IT'S TALKING WITH A DIVISION OF HITACHI LTD OF JAPAN ABOUT AUTOMOBILE MOTOR TECHNOLOGY A KIA OFFICIAL SAID THE COMPANY PLANS TO BEGIN PRODUCING MOTORS BY THE END OF THIS YEAR IN ITS PLANT IN CHANGWON 310 MILES SOUTHEAST OF ITS SEOUL HEADQUARTERS IN TECHNOLOGICAL COOPERATION WITH HITACHI THE AUTOMOBILEMOTOR PRODUCTION WILL HELP THE COMPANY EXPAND INTO A MORE TECHNOLOGYINTENSIVE AREA SAID THE KIA OFFICIAL KIA PRECISION WORKS PRODUCES SPECIALLY EQUIPPED MOTOR VEHICLES AND VARIOUS AUTO PARTS INCLUDING ARRESTING GEARS THE OFFICIAL SAID MOST MOTORS TO BE PRODUCED IN ITS CHANGWON PLANT WILL BE SUPPLIED TO KIA MOTORS THE NATION'S SECOND LARGEST AUTO MAKER 9404110057 940411 BUSINESS BRIEF FREEPORT MCMORAN OIL & GAS HOUSTON FUEL CONCERN STOPS PRODUCTION AT ONE GULF SITE FREEPORT MCMORAN OIL & GAS ROYALTY TRUST SAID IT HAS PLUGGED AND ABANDONED THE NO 10 WELL ON WEST DELTA BLOCK 34 IN THE GULF OF MEXICO BECAUSE OF ADVERSE RESULTS FROM PRODUCTION TESTS AS A RESULT THE COMPANY SAID TOTAL PROVEN RESERVES ATTRIBUTABLE TO ITS PROPERTIES AS OF DEC 31 WERE LOWERED TO ABOUT 66 BILLION CUBIC FEET OF NATURAL GAS AND ABOUT 113000 BARRELS OF OIL DOWN FROM ABOUT 83 BILLION CUBIC FEET OF NATURAL GAS AND ABOUT 116000 BARRELS OF OIL FREEPORT MCMORAN A HOUSTONBASED OIL AND GAS ROYALTIES CONCERN SAID NO CASH DISTRIBUTIONS ARE EXPECTED TO BE MADE TO UNIT HOLDERS THROUGH THE FIRST HALF OF 1994 AND POSSIBLY FUTURE PERIODS THE COMPANY CITED COSTS ASSOCIATED WITH EXPLORATORY DRILLING AT WEST DELTA BLOCK 34 AND THE CONTINUED FUNDING OF THE RESERVE FOR ITS ADMINISTRATIVE EXPENSES THE COMPANY LAST PAID A DISTRIBUTION TO UNITHOLDERS IN OCTOBER 9404110056 940411 BUSINESS BRIEF INCHCAPE PLC UNIT EXPECTED TO DISTRIBUTE ROLLSROYCE CARS IN CHINA INCHCAPE PACIFIC PLC WILL BECOME THE EXCLUSIVE DISTRIBUTOR OF ROLLSROYCE CARS IN CHINA ACCORDING TO A PERSON AT THE COMPANY OFFICIALLY THE HONG KONG SUBSIDIARY OF INCHCAPE PLC OF BRITAIN WILL ONLY SAY THAT IT HAS SCHEDULED A SIGNING CEREMONY WITH ROLLSROYCE ON APRIL 19 AT CHINA'S GREAT WALL NEAR BEIJING INCHCAPE PACIFIC ALREADY SELLS AN UNSPECIFIED NUMBER OF THE LUXURY CARS TO MAINLAND CHINESE THROUGH ITS FRANCHISE IN HONG KONG BUT MOST OF THOSE CARS ARE SOLD TO CUSTOMERS JUST ACROSS THE BORDER IN SOUTHERN CHINA AS IN HONG KONG THE MAINLAND DEAL IS EXPECTED TO INCLUDE RIGHTS TO SELL BENTLEY CARS WHICH LIKE ROLLROYCES ARE PRODUCED BY VICKERS PLC INCHCAPE PACIFIC OFFICIALS DECLINED TO APPRAISE THE MARKET FOR THE LUXURY VEHICLES IN CHINA ALTHOUGH ESTIMATES ARE EXPECTED TO BE ANNOUNCED AT THE SIGNING CEREMONY CARS CONSTITUTE A CORE BUSINESS FOR INCHCAPE PACIFIC IN ASIA BUT THE COMPANY HAS SEVERAL OTHER INTERESTS IN THE REGION INCLUDING CONSUMER PRODUCTS WINES AND SPIRITS BUSINESS MACHINES AND SHIPPING 9404110055 940411 LOGGING TIME HARSH LABOR CAMPS IN SIBERIA STILL EXIST IN DEMOCRATIC RUSSIA NORTH KOREA OPERATES THEM TO HARVEST THE TIMBER SHARES PROFITS WITH HOST HUNGER COLD AND WORSE BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL CHEGDOMYN RUSSIA FURTIVELY WE ARE DRIVING THROUGH A LABOR CAMP THAT COULD BE ALMOST ANYWHERE IN NORTH KOREA THE OBLIGATORY PORTRAIT OF GREAT LEADER KIM IL SUNG LOOKS OUT ACROSS THE SAGGING WOODEN BARRACKS OF NORTH KOREAN LUMBERJACKS LOUDSPEAKERS WAFT STATEAPPROVED ANTHEMS OF GLORY ACROSS THE SNOW A SIGN IN HUGE RED KOREAN CHARACTERS EXHORTS DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA TO VICTORY INSIDE KOREAN WORKERS ARE FREEZING HUNGRY AND POLICED BY PRESIDENT KIM'S SECURITY AGENTS WHO ACCORDING TO AMNESTY INTERNATIONAL TORTURE SOME WORKERS IF THEY MAKE THE WRONG MOVE BUT THIS NORTH KOREAN CAMP ISN'T IN NORTH KOREA IT IS IN RUSSIA SUPPOSEDLY A FREE COUNTRY THE CAMP ONE OF MORE THAN A DOZEN IN EASTERN RUSSIA IS A COG IN ONE OF THE MOST SORDID AND PROFITABLE JOINT VENTURES IN RUSSIA TODAY A STATETOSTATE DEAL BETWEEN MOSCOW AND PYONGYANG UNDER WHICH SOME 15000 NORTH KOREANS TENDED BY NORTH KOREAN GUARDS LOG THE VAST BIRCH AND PINE FORESTS OF SOUTHEASTERN SIBERIA THEY ARE PAID A PITTANCE AND FORBIDDEN TO LEAVE THE CAMPS IT IS PRACTICALLY SLAVE LABOR SAYS A RUSSIAN SECURITY OFFICER IN THE REGION THIS ENTERPRISE BEGAN 27 YEARS AGO AS A BARGAIN BETWEEN THE REGIMES OF RUSSIA'S LEONID BREZHNEV AND HIS COMMUNIST NEIGHBOR THE SAME PRESIDENT KIM WHO LAUNCHED THE KOREAN WAR IN THE 1950S AND STILL RULES TODAY SINCE 1967 RUSSIA HAS SUPPLIED THE FORESTS LOGGING EQUIPMENT FUEL AND RAIL TRANSPORT NORTH KOREA HAS CHIPPED IN WITH THE LUMBERJACKS THE TWO COUNTRIES DIVIDE THE TAKE MOST OF WHICH IS EXPORTED TO COUNTRIES SUCH AS JAPAN FOR HARD CURRENCY THIS SETUP DIDN'T BOTHER MOSCOW IN COMMUNIST TIMES THIS CORNER OF SIBERIA WAS PART OF THE EXTENSIVE SOVIET PRISON SYSTEM KNOWN AS THE GULAG SOVIET POLITICAL PRISONERS SHIPPED HERE WERE PUT TO WORK MINING COAL OR CUTTING TIMBER BUT SINCE THE SOVIET UNION COLLAPSED IN 1991 THE REPRESSIVE KOREAN CAMPS HAVE BECOME AN ACUTE EMBARRASSMENT TO RUSSIA WE JUST WANT TO FINISH THIS NIGHTMARE AS SOON AS POSSIBLE SAYS A RUSSIAN FOREIGN MINISTRY OFFICIAL TEIMOURAZ RAMISHVILI HE SAYS THERE IS HARSH TREATMENT IN THE CAMPS INCLUDING TORTURE BEATINGS SOME WORKERS DIE HE ADDS AND THE REASONS OF THEIR DEATH ARE CONTROVERSIAL IN INCREASING NUMBERS NORTH KOREAN WORKERS ARE FLEEING THE CAMPS MOST HOPING FOR ASYLUM IN SOUTH KOREA JUST LAST WEEK A SPOKESMAN FOR SOUTH KOREAN PRESIDENT KIM YOUNG SAM SAID 90 RUNAWAY LOGGERS TURNED UP AT SOUTH KOREA'S EMBASSY IN MOSCOW AND ITS CONSULATE IN VLADIVOSTOK REQUESTING ASYLUM BUT THE GOVERNMENT ISN'T ACCEPTING THEM IN ORDER TO AVOID GETTING ON THE NERVES OF NORTH KOREA THE SPOKESMAN SAID PYONGYANG HAS WARNED THAT IT WILL VIEW ANY LOGGERS GRANTED ASYLUM AS HAVING BEEN KIDNAPPED IT ALSO THREATENED TO RESPOND WITH UNSPECIFIED DECISIVE COUNTERMEASURES MOSCOW IN FRUSTRATION BROKE OFF ITS LOGGING CONTRACT WITH NORTH KOREA AT THE END OF LAST YEAR TALKS ON A NEW CONTRACT ARE STALLED OVER PYONGYANG'S REFUSAL TO STOP RUNNING THE CAMPS AS TOTALITARIAN ENCLAVES YET BOTH COUNTRIES STILL WANT THE HARDCURRENCY PROFITS AND RUSSIANS WON'T LOG THIS BRUTAL TERRAIN FOR SO LITTLE PAY SO UNDER WHAT ONE MOSCOW OFFICIAL TERMS A GENTLEMEN'S AGREEMENT THE KOREAN LOGGING CARRIES ON AS BEFORE A CLANDESTINE TOUR OF SEVERAL OF THE REMOTE CAMPS GIVES A GLIMPSE OF HOW RAW AND DESPERATE LIFE IS FOR THE KOREANS THERE THE CAMPS AND THE FEW SURROUNDING TOWNS FRIGID OUTPOSTS PEOPLED MAINLY BY DESCENDANTS OF FORMER SOVIET FORCED LABORERS ARE REACHABLE ONLY BY AIR OR TRAIN CUT OFF BY MOUNTAINS AND FORESTS FROM THE REST OF RUSSIA THE TEMPERATURE IN WINTER CAN FALL TO 50 DEGREES BELOW ZERO AT CHEGDOMYN'S ONLY HOTEL A SHABBY CONCRETE BUILDING WITH RUSTEDOUT PLUMBING LOCALS GATHER BEFORE A LOBBY TELEVISION SET EACH EVENING TO WATCH AMERICAN SOAP OPERAS DUBBED IN RUSSIAN LOCAL AND CAMP OFFICIALS WON'T ALLOW AN AMERICAN INSIDE THE CAMPS BUT A COAL MINER PROVES MORE HELPFUL RENTING OUT HIS SERVICES AS A DRIVER TO NAVIGATE THE FEW RUTTED SNOWPACKED ROADS IN AN OLD WHITE ZHIGULI AT ONE OF THE LOGGERS' COMPOUNDS NEAR THE TOWN OF URGAL JUST SOUTHWEST OF CHEGDOMYN THE GUARD WHO LIFTS THE GATE STANDS IN THE SNOW WEARING SNEAKERS WITH NO LACES AND NO SOCKS HE AND MOST OTHER NORTH KOREANS HERE ARE BONETHIN APART FROM WHATEVER THEY CAN ILLICITLY FORAGE OR TRADE THEY SUBSIST ON PYONGYANGSUPPLIED RATIONS OF CABBAGE AND RICE HUNGRY NORTH KOREANS SOMETIMES SLIP AWAY FROM THE CAMP TO BEG DOORTODOOR FROM THE RUSSIANS ONE KOREAN CAME HERE AND YOU COULD SEE HE WAS JUST STARVING I GAVE HIM BREAD AND SALT PORK SAYS A HOUSEWIFE VALENTINA SHAPRINSHAYA CONDITIONS ARE MUCH THE SAME AT ANOTHER CAMP ON THE OUTSKIRTS OF CHEGDOMYN HERE THE ROWS OF LONG WOODEN BARRACKS ARE HEAVY WITH ICICLES YET MANY WINDOWS ARE COVERED ONLY WITH CARDBOARD OR PLASTIC SHEETING THERE IS NO PLUMBING TWO WORKERS ROLLING HEAVY LOGS IN FRONT OF ONE CABIN WEAR TORN PANTS AND FELT SHOES WHEN A FOREIGNER APPROACHES SEVERAL CAMP OFFICIALS APPEAR AND THE TWO WORKERS QUICKLY TURN AWAY CAMP OFFICIALS TRY HARD TO KEEP FOREIGNERS OUT WHEN A REPORTER FOR THE GERMAN MAGAZINE DER SPIEGEL FLEW IN TO YET ANOTHER CAMP BY HELICOPTER TWO YEARS AGO HE AND HIS RUSSIAN CREW WERE RUN OFF BY SCORES OF NORTH KOREANS WHO APPARENTLY FOLLOWING ORDERS BEAT UP THE MEN AND ATTACKED THEIR HELICOPTER WITH A CHAIN SAW AND AN AX ONE KOREAN WHO RAN AWAY FROM THE CHEGDOMYN CAMP AND IS IN HIDING IN MOSCOW SAYS HE WAS JAILED INSIDE THE COMPOUND FOR SELLING GOODS TO RUSSIANS ANOTHER JAIL HE ASSERTS IS SET ASIDE FOR THE SOLITARY CONFINEMENT OF LOGGERS WHO COMMIT POLITICAL OFFENSES THOSE PEOPLE WHO OPPOSE KIM IL SUNG THEY RECEIVE TORTURE HE SAYS HALF OF THEM THEY KILL SO THAT THEY CAN'T RUN AWAY MOST OF THE PEOPLE PUT IN THE ISOLATION CELLS YOU DON'T KNOW WHAT HAPPENS TO THEM HE SAYS THAT HE HAS SEEN LABORERS DIE BY BEING CRUSHED BY FALLING TREES OR BY COLLISIONS BETWEEN LUMBER TRUCKS WHEN BRAKES HAVE FAILED HE CLAIMS THAT CAMP AUTHORITIES WAIT UNTIL THEY HAVE 10 CORPSES BEFORE SHIPPING THEM BACK IN BULK BY RAIL TO NORTH KOREA A ROUTINE HE SAYS HE SAW REPEATED 20 TO 30 TIMES OVER HIS FOUR YEARS IN THE CAMPS NORTH KOREA HAS DENIED TORTURING JAILING OR OTHERWISE MISTREATING LABORERS THERE IS NO PRISON' BUT ONLY EDUCATION ROOMS NORTH KOREAN OFFICIALS SAID IN A LETTER LAST FALL TO AMNESTY INTERNATIONAL WHICH IN OCTOBER DECRIED ABUSES IN THE CAMPS THE LETTER ADDED THE DEATH PENALTY IS RARELY IMPOSED ONLY ON EXTREMELY SERIOUS CASES AND NO ONE HAS BEEN SENTENCED ON POLITICAL GROUNDS THE GRIM REALITY IS THAT WHILE NORTH KOREA ONCE SHIPPED POLITICAL UNDESIRABLES TO CHEGDOMYN AS PUNISHMENT NOW SOME NORTH KOREANS ACTUALLY VIE TO COME HERE PROSPECTS ARE SO BLEAK AT HOME THAT SOME VIEW EVEN A SIBERIAN LABOR CAMP AS A WINDOW ON A WORLD OF FREEDOM THE RUNAWAY IN MOSCOW FOR EXAMPLE SAYS HE BRIBED OFFICIALS IN HIS NORTH KOREAN HOMETOWN WITH LIQUOR AND WARMUP SUITS TO BE CHOSEN FOR THE CAMPS ANXIOUS TO BE ABLE TO TRADE WITH THE RUSSIANS ONCE HE ARRIVED HE SMUGGLED IN 300 PACKS OF CHEWING GUM AS CURRENCY TO OFFER FOR OTHER GOODS SOME KOREANS DO MANAGE DESPITE CAMP RULES TO TRADE IN RUSSIA'S RELATIVELY OPEN MARKETS THEY TRAP ANIMALS AND SELL THE PELTS ON TRANSISTOR RADIOS BOUGHT FROM RUSSIANS THEY LISTEN SECRETLY TO THE NEWS A PASTIME IMPOSSIBLE IN THEIR HOMELAND WHERE RADIOS ARE MADE WITH BUTTONS THAT BRING IN ONLY GOVERNMENT STATIONS IN CHEGDOMYN A SQUAT RUNDOWN TOWN WHERE MOST RUSSIANS LIVE WITH WOODBURNING STOVES AND WITHOUT RUNNING WATER SOME KOREANS CLANDESTINELY PEDDLE FIREWOOD AT THE BLUE FRONT GATE OF THE KOREAN OPERATION'S HEADQUARTERS IN TOWN A CHIPPER KOREAN GUARD WEARING A KIM IL SUNG BUTTON SELLS BOTTLES OF VODKA FROM UNDER HIS FELT JACKET TO PASSING RUSSIANS AND IN THE TOWN'S MEAGER CENTRAL MARKET TWO NORTH KOREANS SPEAKING PIDGIN RUSSIAN CAUTIOUSLY OFFER TO SELL SABLE HATS THOUGH THEY THEMSELVES LACK HATS AND GLOVES BEFORE THEY CAN SHOW THEIR WARES TWO OTHER NORTH KOREANS WHO BY THEIR WARMER CLOTHES APPEAR TO BE CAMP BOSSES MARCH THEM TO A WAITING VEHICLE IN RUSSIA'S NEW OPEN SOCIETY MORE OF THE NORTH KOREANS ARE FINDING WAYS TO FLEE THE CAMPS BUT THE STAKES ARE HIGH IF I GET CAUGHT I WOULD BE DEPORTED BACK TO NORTH KOREA SAYS THE RUNAWAY IN MOSCOW THERE HE BELIEVES I WOULD BE TORTURED AND QUIETLY DISPOSED OF HE ADDS THAT WHEN RUSSIA OPENED UP HE THOUGHT HE HAD FOUND A DOOR TO FREEDOM BUT THOUGH I THOUGHT THE DOOR WAS OPEN NOW THAT I AM ACTUALLY HERE IT'S NOT OPEN AT ALL IN THE RUSSIAN CITY OF KHABAROVSK ON THE CHINESE BORDER CHIEF TRANSIT HUB FOR CHEGDOMYN NORTH KOREAN SECURITY AGENTS PATROL THE TRAIN STATION FOR WOULDBE DEFECTORS RUNAWAYS ARE TAKEN TO A HUGE NORTH KOREAN CONSULATE ON THE EDGE OF TOWN WHERE RUSSIAN SECURITY OFFICIALS SAY THEY GENERALLY VANISH AT THE CONSULATE TRANSLATOR HAN BOO GIL IS ASKED WHETHER HUMAN RIGHTS ARE BEING VIOLATED IN THE CAMPS WHAT HUMAN RIGHTS HE ASKS THEY'RE IN THE WOODS JUST WORKING WHAT HUMAN RIGHTS CAN THERE BE 9404110053 940411 BUSINESS BRIEF KEMPER CORP COMPANY APPEALS TO HOLDERS IN GE CAPITAL PROXY FIGHT KEMPER CORP URGED ITS SHAREHOLDERS TO TAKE ITS SIDE IN A PROXY BATTLE AGAINST GE CAPITAL CORP AND ACCUSED GE CAPITAL OF REPEATED INACCURACIES INNUENDOES AND INCONSISTENCIES LAST MONTH KEMPER REBUFFED AN UNSOLICITED 55ASHARE OR 22 BILLION TAKEOVER OFFER FROM GE CAPITAL THE FINANCIAL UNIT OF GENERAL ELECTRIC CO FAIRFIELD CONN THEN LAUNCHED A PROXY BATTLE TO OUST FOUR KEMPER DIRECTORS AT THE COMPANY'S MAY 11 ANNUAL MEETING AND PRESSURE THE BOARD TO AGREE TO A SALE A KEMPER LETTER DATED APRIL 9 TO SHAREHOLDERS CHARGED GE CAPITAL WITH ERRONEOUSLY STATING THAT KEMPER MANAGEMENT SAID ITS COMPANY IS NOT FOR SALE AT ANY PRICE THE KEMPER LETTER REJOINED KEMPER MANAGEMENT HAS NEVER MADE THIS STATEMENT AND NEVER WILL KEMPER IS A MONEYMANAGEMENT AND INSURANCE COMPANY BASED IN LONG GROVE ILL A SPOKESMAN FOR GE SAID THE COMPANY HADN'T YET RECEIVED THE LETTER 9404110052 940411 BUSINESS BRIEF GROUPE DES ASSURANCES NATIONALES FRENCH BANKING UNIT POSTS BIG PROFIT INCREASE FOR 1993 UNION EUROPEENNE DE CIC THE PARISBASED BANKING UNIT OF FRANCE'S GROUPE DES ASSURANCES NATIONALES SAID FRIDAY ITS NET GROUP PROFIT SURGED TO 380 MILLION FRANCS 646 MILLION IN 1993 FROM 116 MILLION FRANCS THE PREVIOUS YEAR CIC SAID 1993 PROFIT WAS 822 MILLION FRANCS BEFORE COSTS LINKED TO THE TRANSFER OF REAL ESTATE FINANCING UNIT UIC TO GAN NET BANKING INCOME ROSE 89 TO 171 BILLION FRANCS IN 1993 FROM 157 BILLION FRANCS THE PREVIOUS YEAR CIC ATTRIBUTED THE RISE MAINLY TO STRENGTH IN COMMISSIONBASED ACTIVITIES COMMENTING ON LAST YEAR'S RESULTS CIC SAID ITS LOAN VOLUME CLIMBED 12 TO 2116 BILLION FRANCS WHILE DEPOSITS WERE UP 91 TO 1713 BILLION FRANCS NEW PROVISIONS FOR LOAN RISK GAINED 15 TO 35 BILLION FRANCS 9404110051 940411 BUSINESS BRIEF KENNEDYWILSON INC UNIT TO BE BROKER FOR SALE OF FIVE CALIFORNIA PROPERTIES KENNEDYWILSON INTERNATIONAL A UNIT OF KENNEDYWILSON INC SAID IT WILL ACT AS BROKER FOR THE SEALEDBID SALE OF FIVE SHOPPING CENTERS IN SOUTHERN CALIFORNIA THE SANTA MONICA CALIF COMPANY SAID ALL OF THE PROPERTIES ARE 100 OCCUPIED WITH 75 TO 90 CREDIT TENANTS THE PROPERTIES' OWNERS WERE NOT DISCLOSED BY KENNEDYWILSON THE PROPERTIES ARE LOCATED IN SAN FERNANDO EL MONTE VENTURA SAN DIEGO AND SANTA ANA CALIF AMONG THEM IS SAN FERNANDO VALUE SQUARE WITH ABOUT 223043 SQUARE FEET AND A RESERVE PRICE OF 23 MILLION IN EL MONTE CALIF THE ROUGHLY 399537 SQUARE FOOT EL MONTE SHOPPING CENTER WILL BE OFFERED WITH A RESERVE PRICE OF 355 MILLION 9404110050 940411 THEY HAVE SEEN HOUSTON'S FUTURE AND IT HAS MOATS AND DRAWBRIDGES BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL GEORGE BUSH MAY NOT HAVE HAD MUCH OF ONE BUT THE VISION THING IS BREAKING OUT ALL OVER HIS HOME TOWN OF HOUSTON THE CITY'S MAYOR BOB LANIER HAS ASKED LOCAL RESIDENTS TO WRITE IN WITH THEIR VISION OF THE CITY'S FUTURE WITH ABOUT 357 ENTRIES SO FAR IT APPEARS HOUSTONIANS ENVISION A PRISTINE METROPOLIS THAT IS PART PREINDUSTRIAL EDEN PART HIGHTECH HAVEN IT HAS NO BILLBOARDS POWER LINES AND OUTDOOR VENDORS THEY CLOG INTERSECTIONS IF YOU CAN'T IMAGINE IT IT PROBABLY ISN'T GOING TO HAPPEN SAYS DONNA KRISTAPONIS THE CITY'S DIRECTOR OF PLANNING DEVELOPMENT NO ONE CAN ACCUSE THE NATION'S FOURTHLARGEST CITY OF LACKING IMAGINATION ONE WOMAN FEARING BANDITS SUGGESTED TRANSFORMING DOWNTOWN HOUSTON INTO A MEDIEVAL WALLED CITY WITH MOATS AND DRAWBRIDGES A MAN FORESAW THE DAY THAT ALL ETHNIC GROUPS SPOKE THEIR NATIVE LANGUAGE TO ENCOURAGE TOURISM A LIGHT RAIL SYSTEM AKIN TO THE ONE IN PARIS WOULD ALSO BE WELCOMED ACCORDING TO ANOTHER RESIDENT THE ENTRIES HAVE BEEN A MIXTURE OF THE PRACTICAL AND POIGNANT A WOMAN WHO HAS BEEN UNEMPLOYED SINCE AUGUST ENVISIONED A HOUSTON WITH GREATER JOB OPPORTUNITIES ANOTHER RESIDENT WISHING TO SPRUCE UP EVERY NOOK AND CRANNY IN OUR CITY ASKED FOR DISCOUNTS ON PAINT AND HOME CLEANUP SUPPLIES ANOTHER MAN SENT A PHOTOGRAPH OF HIS STRIPED CAT AND MADE A PLEA FOR A CITY WITH CLEAN AIR AND WATER WHERE SPAYED CATS LIKE ME ARE WANTED AND LOVED THIS IMAGINE HOUSTON CAMPAIGN WAS CONCEIVED LAST YEAR IN CONJUNCTION WITH THE CITY'S EFFORTS TO ADOPT ITS FIRST ZONING ORDINANCE BUT VOTERS SAID NO TO ZONING THUS DENIED ANY REAL PLANNING AUTHORITY THE CITY MUST NOW SETTLE FOR ACCUMULATING A PUBLIC WISH LIST A FUTURE PLANNING REPORT DRAWING UPON THE IMAGINE HOUSTON ENTRIES IS PROMISED MR LANIER HOWEVER SAYS THE CAMPAIGN WILL STILL PLAY AN IMPORTANT CIVIC ROLE IT MAKES PEOPLE FEEL PART OF THE BODY POLITIC IN A BROADER SENSE THE MAYOR SAYS IT'S NOT JUST A GOAL TO AIM FOR BUT PART OF THE UNDERSTANDING OF WHAT WE AS A PEOPLE WANT TO BE PROCLAIMING A VISION NO MATTER HOW IDEALISTIC IS AN AMERICAN TRADITION DATING BACK TO THE DECLARATION OF INDEPENDENCE MR LANIER SAYS BUT THE DECLARATION OF INDEPENDENCE NEVER SAID ANYTHING ABOUT BILLBOARDS 9404110049 940411 FORM + FUNCTION BY JOHN PIERSON YOU'RE SITTING DOWN BUT YOUR BACK IS UP AND DOING BACKCYCLER IS A CURVED SUPPORT THAT FITS BETWEEN THE HUMAN BACK AND THE SEAT BACK EVERY TWO MINUTES THE COMPUTERCONTROLLED BACKCYCLER GIVES THE USER A GENTLE NUDGE IN THE LOWER SPINE PUSHING THE SMALL OF THE BACK FORWARD AN INCH OR TWO DEPENDING ON THE USER'S WEIGHT STIFFNESS POSTURE POSITION AND PREFERENCE A MINUTE LATER BACKCYCLER BEGINS LETTING OFF THE PRESSURE SLOWLY RETURNING THE BACK TO REST DEVELOPED AT THE UNIVERSITY OF VERMONT MEDICAL SCHOOL THE BACKCYCLER IS PORTABLE AND IS PRICED AT 255 ERGOMEDICS OF WINOOSKI VT IS TALKING WITH MAKERS OF CAR AND OFFICE SEATING ABOUT INSTALLING THE DEVICE IN THEIR PRODUCTS MOST ERGONOMIC CHAIRS AND BACKRESTS ARE STATIC OR VIBRATE BUT STATIC SUPPORT EVENTUALLY LEADS TO STIFFNESS AND LOW BACK PAIN SAYS ERGOMEDICS WHILE VIBRATION MOVES ONLY THE SOFT TISSUE NOT THE SPINE THE CONTINUOUS MOTION EMPLOYED BY BACKCYCLER HAS LONG BEEN USED TO TREAT INJURIES TO LEG AND ARM JOINTS THE COMPANY SAYS THE INVENTOR OF A LEADING PORTABLE BACK SUPPORT SAYS BACKCYCLER IS EXPENSIVE UNNECESSARY AND POSSIBLY DANGEROUS FRANK ROBERTS PRESIDENT OF ORBUS FORME TORONTO SAYS THAT MOVING THE LOWER SPINE IN AND OUT DOES NOTHING FOR YOU AND I WOULD THINK WOULD CAUSE YOU HARM ERGOMEDICS PRESIDENT FRANK MCNABB REPLIES THERE IS NO EVIDENCE THAT BACKCYCLER CAUSES HARM IN SIX YEARS OF RESEARCH WE HAVEN'T ENCOUNTERED ANYTHING LIKE THAT MR ROBERTS COUNTERS PEOPLE SHOULD BE RESTING THESE INJURED BONES NOT MOVING THEM THE ORBUS FORME A STATIC BACK SUPPORT RETAILS FOR ABOUT 60 CHARLES DAVIS MARKETING VICE PRESIDENT AT STEELCASE CALLS THE BACKCYCLER PHILOSOPHICALLY VERY PROMISING AND SAYS HIS COMPANY PLANS TO DO FIELD TESTS WITH THE BACKCYCLER'S TECHNOLOGY INSERTED IN SOME OF ITS OFFICE CHAIRS TO BE COMFORTABLE THE SPINE REQUIRES NOURISHMENT THROUGH BLOOD FLOW ADDS MR DAVIS AND THE ONLY WAY TO DO THAT IS TO MOVE IT NOW THE VIRTUAL CONCERT TOUR YOU PLAY PARIS VIENNA AMSTERDAM NEW YORK ALL IN AN AFTERNOON WITH THE FLICK OF A SWITCH A NEW COMPUTERIZED MUSIC ROOM CAN TRANSPORT A MUSICIAN ACOUSTICALLY TO 16 PLACES INCLUDING A PRACTICE ROOM RECITAL HALL INTIMATE THEATER RECORDING STUDIO CATHEDRAL CONCERT HALL AND STADIUM MADE BY WENGER OF OWATONNA MINN THE WENGER ACOUSTIC VIRTUAL ENVIRONMENT OR THE WAVE MIMICS A SPACE EMPTY OR FILLED WITH AN AUDIENCE THE WAVE CAN SIMULATE VARIATIONS IN THE SHAPE OF A CONCERT HALL AND 25 OTHER FACTORS THE MUSICIAN PLAYS OR SINGS IN THE 11BY13 1/2 FOOT ROOM THE SOUND IS PICKED UP BY A COMPUTER DESIGNED BY BOSTONBASED LEXICON INSTANTLY THE WAVE IS FILLED WITH THE MUSIC BUT AS IF IT HAS BEEN PRODUCED IN THE CHOSEN ENVIRONMENT RATHER THAN IN A BOX THE WAVE CAN GIVE MUSIC STUDENTS ACCESS TO PERFORMANCE HALLS THAT ORDINARILY WOULD BE BEYOND THEIR REACH IT ALLOWS PROFESSIONAL MUSICIANS TO WARM UP IN AN ENVIRONMENT JUST LIKE THE ONE THAT THEY WILL BE PERFORMING IN MUSICIANS WHO HAVE TRIED THE WAVE ARE ENTHUSIASTIC SIGRID JOHNSON A VOICE INSTRUCTOR AT ST OLAF COLLEGE NORTHFIELD MINN SAYS A LOT OF STUDENTS NEVER GET TO PERFORM IN A CATHEDRAL JAMES VANDEMARK A PROFESSOR OF DOUBLE BASS AT THE EASTMAN SCHOOL OF MUSIC ROCHESTER NY PRAISES THE ROOM FOR PROVIDING A COMPLETE DECEPTION A MAJOR MAKER OF MUSICAL FURNITURE AND EQUIPMENT WENGER SAYS ITS NEW MUSIC ROOM IS UNDER CONSIDERATION AT UNIVERSITIES IN GEORGIA SOUTH CAROLINA AND TEXAS AND BY THE BANDS OF THE US MILITARY SERVICES THE PRICE IS 80000 A WAVE DESIGNERS KNOW HOW TO MAKE PRODUCTS THAT ANYONE CAN USE NO MATTER HOW YOUNG OLD OR INFIRM BUT MAKING A PRODUCT THAT ANYONE MIGHT WANT TO USE IS HARDER JASON BILLIG A SENIOR AT STATE UNIVERSITY OF NEW YORK/BUFFALO THINKS HE'S FOUND THE WAY MR BILLIG AND HIS PARTNER WILLIAM CHEUNG HAVE DESIGNED AN OUTDOOR DRINKING FOUNTAIN THAT TEETERS LIKE A SEESAW TO SERVE PEOPLE OF VARIOUS HEIGHTS USING A PIVOT POINT AND A MOVABLE COUNTERWEIGHT OPPOSITE THE DRINKING END THE HEIGHTADJUSTABLE WATER FOUNTAIN CAN ALTERNATELY SERVE SOMEONE IN A WHEELCHAIR A SEVENFOOTTALL BASKETBALL PLAYER OR A CHILD THE BILLIGCHEUNG FOUNTAIN HAS BEEN DEEMED UNIVERSAL ENOUGH BY THE AMERICAN SOCIETY ON AGING TO WIN A FIRST PRIZE IN ITS ANNUAL DESIGN COMPETITION PART OF THAT PRIZE WAS FOR LOOKS THE DESIGNERS SAY THEY WERE INSPIRED BY THE MOBILES OF ALEXANDER CALDER THEIR FOUNTAIN ALSO RESEMBLES A LARGE BIRD IN FLIGHT IT'S PLAYFUL IT'S NOT CLINICAL SAYS MR BILLIG IT ATTRACTS YOUR ATTENTION AND MAKES YOU WANT TO USE IT PROF ABIR MULLICK IN WHOSE CLASS THE DESIGN WAS CONCEIVED CALLS THE FOUNTAIN AS SPONTANEOUS AS NATURE 9404110048 940411 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 7/16 HIGH 3 1/8 LOW 3 1/8 NEAR CLOSING BID 3 1/4 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 362 30 TO 44 DAYS 365 45 TO 59 DAYS 375 60 TO 94 DAYS 385 95 TO 119 DAYS 398 120 TO 149 DAYS 405 150 TO 179 DAYS 415 180 TO 239 DAYS 430 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 372 30 DAYS 382 60 DAYS 395 90 DAYS CERTIFICATES OF DEPOSIT 310 ONE MONTH 324 TWO MONTHS 337 THREE MONTHS 373 SIX MONTHS 421 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 365 ONE MONTH 385 THREE MONTHS 425 SIX MONTHS BANKERS ACCEPTANCES 363 30 DAYS 372 60 DAYS 382 90 DAYS 395 120 DAYS 403 150 DAYS 414 180 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 7/8 3 3/4 TWO MONTHS 4 3 7/8 THREE MONTHS 4 1/8 4 FOUR MONTHS 4 1/4 4 1/8 FIVE MONTHS 4 5/16 4 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/4 ONE MONTH 4 THREE MONTHS 4 3/8 SIX MONTHS 4 15/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 569 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 4 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 371 13 WEEKS 402 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 826 60 DAYS 833 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 822 60 DAYS 830 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 610 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 289 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404110047 940411 GLOBAL VIEW MARRAKESH IS NO PLACE FOR A TRADE AMBUSH BY GEORGE MELLOAN GOVERNMENT MINISTERS FROM ALL OVER THE WORLD WILL BE IN MARRAKESH MOROCCO THIS WEEK TO COMPLETE THE URUGUAY ROUND PRESUMABLY THERE WILL BE NO FINAL HITCH BUT THERE WILL BE SOME EXCESS BAGGAGE THAT COULD BLUNT THE ROUND'S FREETRADE GOALS THE PROBLEM STEMS FROM THE RATHER INTRICATE TRADE POLITICS OF THE CLINTON ADMINISTRATION PERHAPS THE PRESIDENT KNOWS WHAT HE IS DOING AS HE BOBS AND WEAVES AND DANCES BACKWARD AND FORWARD ON TRADE FOR THE BENEFIT OF CONGRESS THE ENVIRONMENTALISTS AND AMERICAN LABOR MAYBE IT WILL WIN HIM CONGRESSIONAL APPROVAL FOR THE URUGUAY ROUND WHICH WOULD BE A VERY GOOD THING INDEED BUT BOTH AMERICANS AND NONAMERICANS ARE BECOMING CONFUSED ABOUT WHAT THE ADMINISTRATION'S REAL POSITION ON TRADE IS ASSUMING IT HAS ONE THERE IS SOME DANGER THAT INSTEAD OF MR CLINTON PLAYING THE TRADE POLITICS GAME THE GAME WILL START PLAYING HIM THE CONFUSION ABOUT CLINTON TRADE POLICIES ARISES FROM THE CONTRAST BETWEEN WHERE THE ADMINISTRATION SEEMED TO BE GOING IN 1993 AND WHERE IT SEEMS TO BE GOING TODAY LAST YEAR MR CLINTON THREW HIS PRESIDENTIAL WEIGHT BEHIND BOTH THE NAFTA AND URUGUAY ROUND FREE TRADE INITIATIVES AND HELPED PUSH THROUGH AGREEMENTS ON BOTH IT WAS GOOD POLITICS BECAUSE AMERICANS KNEW THAT THE COUNTRY WAS IN NEED OF ECONOMIC STIMULUS AND SENSED INSTINCTIVELY THAT FREER COMMERCE AT ANY LEVEL IS GOOD FOR BUSINESS BUT THIS YEAR THE BACKWARD DANCE BEGAN THE ADMINISTRATION PICKED FIGHTS WITH JAPAN OVER MARKET OPENING AND WITH CHINA OVER HUMAN RIGHTS THREATENING BOTH WITH TRADE SANCTIONS EVEN MORE INTERESTINGLY IT STEPPED INTO THE DOMESTIC POLITICS OF INDONESIA TO DEMAND MORE STRINGENT REGULATIONS THAT WOULD RAISE LABOR COSTS AGAIN BRANDISHING THE TRADE WEAPON THIS WEEK MICKEY KANTOR WILL GO TO MARRAKESH TO PROMOTE A POLICY THAT WOULD TIE FUTURE ACCESS TO US MARKETS BY DEVELOPING COUNTRIES TO FURTHER IMPROVEMENTS IN BOTH THEIR LABOR AND ENVIRONMENTAL STANDARDS FRANCE AND MAYBE SOME OTHER INDUSTRIAL NATIONS WILL LEND SUPPORT A COMPROMISE BETWEEN THE US AND DEVELOPING NATIONS IN GENEVA LAST THURSDAY WILL ALLOW THE US TO RAISE THE LABOR STANDARDS ISSUE BUT NOT MAKE IT PART OF SUBSTANTIVE DISCUSSIONS IT CAN BE PURSUED LATER SOME THIRD WORLD LEADERS ARE FURIOUS AT WHAT THEY SAW AS A GAME OF BAIT AND SWITCH THEY WERE ASKED TO OPEN UP THEIR COUNTRIES TO FOREIGN TRADE AND INVESTMENT AS PART OF THE URUGUAY ROUND AND WERE IN TURN TO HAVE BETTER ACCESS TO INDUSTRIAL WORLD MARKETS TO MAKE THIS TRADENOTAID DEAL MANY RISKED THEIR POLITICAL FUTURES BY GOING HEADTOHEAD WITH PROTECTIONIST MOGULS IN THEIR OWN COUNTRIES NOW THE INDUSTRIAL NATIONS LED BY MR CLINTON WANT TO IMPOSE CONDITIONS ON MARKET ACCESS THAT COULD SHUT THEM OUT ONCE MORE DEVELOPING NATIONS SEE LABOR STANDARDS AS A BLATANT ATTEMPT TO DENY THEM THE ADVANTAGE OF LOWCOST LABOR AS THEY TRY TO COMPETE IN WORLD MARKETS WITH MORE ADVANCED NATIONS THEY HAVE A POINT CERTAINLY THE MAJOR FORCE BEHIND THE CLINTON ADMINISTRATION'S LABOR STANDARDS DRIVE IS THE AMERICAN LABOR MOVEMENT WHICH MAKES NO BONES ABOUT ITS DESIRE TO REDUCE THE FLOW OF GOODS MADE WITH CHEAP FOREIGN LABOR INTO THE US AT THE COST SO THE UNIONS CLAIM OF US JOBS THE INTERNATIONAL LABOR MOVEMENT NOT SURPRISINGLY IS SOMEWHAT MORE MODERATE THAN AMERICAN UNIONS THE INTERNATIONAL CONFEDERATION OF FREE TRADE UNIONS ICFTU SAYS IT DOES NOT WANT A GLOBAL MINIMUM WAGE BUT THAT IT FEELS JUSTIFIED IN FIGHTING FOR AN END TO JOB DISCRIMINATION FORCED LABOR CHILD LABOR AND RESTRICTIONS ON THE RIGHTS OF WORKERS TO FORM FREE TRADE UNIONS THESE ARE ALL GOALS WELL WITHIN THE BOUNDS SET BY THE INTERNATIONAL LABOR ORGANIZATION A UN AGENCY AND THE ICFTU SEES NO REASON WHY THEY SHOULD NOT BE BACKED BY THE NEW INTERNATIONAL TRADE ORGANIZATION ITO DUE FOR APPROVAL AT MARRAKESH THIS WEEK TO BECOME THE NEW REGULATOR OF WORLD TRADE AT THE BEGINNING OF NEXT YEAR IT SEEMS LIKELY THAT THE US WILL CONTINUE TO PRESS FOR SUCH A LINKAGE DESPITE THURSDAY'S COMPROMISE IT WOULD BE HARD TO TAKE EXCEPTION TO THE ICFTU'S GOALS FOR IMPROVING WORKING CONDITIONS AROUND THE WORLD BUT THE QUESTION IS WHETHER THEY SHOULD BE TIED TO TRADE GATT CAN'T BE THE ARBITER OF ALL ECONOMIC AND POLITICAL RELATIONS BALKRISHAN ZUTSHI INDIA'S AMBASSADOR TO GATT TOLD THE JOURNAL'S BHUSHAN BAHREE A FEW DAYS AGO IT WILL COLLAPSE UNDER THE STRAIN THAT TOO IS A GOOD POINT NOT ONLY WOULD SUCH CONSIDERATIONS OVERLOAD THE ITO BUT THEY ALSO WOULD OPEN UP HUGE NEW AREAS FOR TRADE DISPUTES WHICH COULD IN EFFECT WIPE OUT ANY FREE TRADE GAINS FROM THE URUAGUAY ROUND AGREEMENT THE CLINTON ADMINISTRATION'S DECISION TO PULL ITS SUPER 301 TRADE LEGISLATION OUT OF THE CLOSET GIVING ITSELF THE POWER TO ACT UNILATERALLY TO PUNISH WHAT IT SEES AS UNFAIR TRADE PRACTICES ELSEWHERE IN THE WORLD IS NOT ENCOURAGING TO THOSE COUNTRIES WHO FEAR THAT THE CLINTONITES ARE SEEKING BACKDOOR PROTECTIONISM EVEN WHILE THEY SING THE PRAISES OF FREE TRADE NOW BACK TO THE MATTER OF MR CLINTON'S DOMESTIC POLITICAL PROBLEMS WITH THE POSITION STAKED OUT FOR MARRAKESH HE NO DOUBT HOPES TO MOLLIFY THOSE FORCES IN CONGRESS THAT MIGHT TRY TO BLOCK APPROVAL OF THE URUGUAY ROUND NO ONE NEEDS TO TELL A PRESIDENT WITH HIS POLITICAL INSTINCTS THE IMPORTANCE OF TRYING TO GET LABOR AND THE ENVIRONMENTALISTS IN HIS CAMP IF THIS IS SIMPLY THE POLITICAL BUSINESS NEEDED TO FURTHER OPEN UP TRADE WELL THAT'S LIFE BUT THIS KIND OF POLITICS BRINGS TO MIND HOW LYNDON JOHNSON WON SUPPORT FOR THE WAR ON POVERTY THE TEXAN ALSO WAS A SHREWD POLITICIAN HE THOUGHT THAT YOU CAN'T DO THINGS FOR POOR FOLKS WITHOUT GETTING A LOT OF RICH AND POWERFUL FOLKS BEHIND YOU SO THE WAR ON POVERTY ENLISTED CONTRACTORS AND BANKERS TO BUILD PUBLIC HOUSING DOCTORS AND HOSPITALS IN SUPPORT OF MEDICARE AND MYRIAD OTHER LOBBIES THAT COULD SEE SOME BENEFIT FOR THEMSELVES INCLUDING EVEN SOME PSYCHOLOGICAL UPLIFT FROM ENLISTING IN THE PRESIDENT'S WAR THE ONLY PROBLEM IS THAT THE WAR ON POVERTY ENDED UP DOING FAR MORE FOR THE RICH AND POWERFUL THAN IT EVER DID FOR THE POOR CERTAINLY LOOKING AT ITS SUPPOSED ACHIEVEMENTS TODAY DOES NOT ENCOURAGE ONE TO THINK HIGHLY OF EMPLOYING SPECIAL INTEREST POLITICS TO WIN LARGER AND MORE DEFENSIBLE GOALS MR CLINTON'S PROBLEM IS THAT IF LABOR AND THE ENVIRONMENTALISTS DECIDE TO SUPPORT THE URUGUAY ROUND THEY WILL MOST LIKELY WANT THE REWARDS THEY WERE PROMISED SPECIFICALLY THE RIGHT TO PUNISH THROUGH TRADE SANCTIONS THOSE NATIONS THAT FOR ONE REASON OR ANOTHER INCUR THEIR WRATH THAT ISN'T LIKELY TO SERVE THE PRINCIPLE OF FREE COMMERCE AND IT SURE IS A PRESCRIPTION FOR MAKING A LOT OF FUTURE TROUBLE BETWEEN THE US AND ITS TRADING PARTNERS 9404110046 940411 BUSINESS BRIEF CHIYODA CORP FIRM MAY GET 2 CONTRACTS TO BUILD PLANTS IN MEXICO JAPANESE ENGINEERING CONCERN CHIYODA CORP SAID IT EXPECTS TO BE AWARDED CONTRACTS TO BUILD TWO PETROCHEMICAL PLANTS IN MEXICO FOR THAT COUNTRY'S STATE OILMARKETING COMPANY PM I COMERCIO INTERNACIONAL SA DE CV CHIYODA SAID THE VALUE OF THE CONTRACTS IS EIGHT BILLION YEN 763 MILLION PHILLIPS PETROLEUM CO OF THE US AND MEXICO'S EPN INGENIERIA ARE TO BE INVOLVED IN CONSTRUCTION WORK IS TO BEGIN IN MAY AND BE COMPLETED AFTER 18 MONTHS THE JAPANESE COMPANY SAID THE CONTRACTS IT EXPECTS THIS MONTH ARE TO BUILD TWO ALKYLATION PLANTS ONE IN TULA WITH CAPACITY OF 7600 BARRELS A DAY AND THE OTHER IN SALINA CRUZ WITH CAPACITY OF 14000 BARRELS A DAY ALKYLATION IS A PROCESS IN WHICH OCTANE LEVELS ARE INCREASED IN GASOLINE CHIYODA SAID MEXICAN OIL CONCERN WANTS TO ESTABLISH A THIRD PLANT WITH CAPACITY OF 7600 BARRELS A DAY IN SALAMANCA BUT DIDN'T INDICATE THAT A CONTRACTOR WAS SELECTED 9404110045 940411 BUSINESS BRIEF SAMSUNG ELECTRONICS CO SOUTH KOREAN CONCERN SIGNS APPLIANCE EXPORT AGREEMENT SAMSUNG ELECTRONICS CO SOUTH KOREA'S BIGGEST ELECTRONICS MAKER SAID IT HAS SIGNED A CONTRACT TO EXPORT WASHING MACHINES AND RELATED TECHNOLOGIES VALUED AT 40 MILLION TO INDIA'S VOLTAS CO SAMSUNG OFFICIALS SAID WASHING MACHINES WILL YIELD 33 MILLION OF THE AGREEMENT WITH VOLTAS A TATA GROUP COMPANY IN 1994 SAMSUNG ALSO SIGNED A 10YEAR CONTRACT WITH THE INDIAN COMPANY TO RECEIVE THE REMAINING 7 MILLION IN ROYALTY PAYMENTS IN EXCHANGE FOR SAMSUNG'S PROPRIETARY TECHNOLOGY TO MAKE WASHING MACHINES OFFICIALS SAID SAMSUNG AND VOLTAS ARE DISCUSSING EXPANSION OF THEIR TECHNOLOGYTRANSFER AGREEMENT TO SUCH CONSUMER ELECTRONIC APPLIANCES AS MICROWAVE OVENS REFRIGERATORS AND AIR CONDITIONERS OFFICIALS SAID 9404110044 940411 BUSINESS BRIEF UNIVERSAL HOLDING CORP UNIT ACQUIRES CERTAIN ASSETS OF ONTARIO BLUE CROSS LINE UNIVERSAL HOLDING CORP'S WORLDNET SERVICES SUBSIDIARY ACQUIRED CERTAIN ASSETS OF ONTARIO BLUE CROSS'S PAY MED UNIT TERMS WEREN'T DISCLOSED A UNIVERSAL HOLDING SPOKESMAN SAID THE COMPANY ALSO REACHED A LONGTERM AGREEMENT TO SERVICE THE TRAVELING CUSTOMERS OF ONTARIO BLUE CROSS BASED IN TORONTO UNIVERSAL HOLDING BASED IN BREWSTER NY SAID WORLDNET WILL OPERATE A 24HOUR PAY MED CENTER IN MIAMI AND PROVIDE MANAGEDCARE MEDICAL COSTCONTAINMENT AND ASSISTANCE SERVICES TO INTERNATIONAL TRAVELERS IN THE US AND CERTAIN OTHER COUNTRIES ON BEHALF OF A NUMBER OF CANADIAN INSURERS AND EUROCROSS A DUTCH TRAVELER'S ASSISTANCE COMPANY THE COMPANY ALSO SAID ITS AMERICAN PROGRESSIVE LIFE & HEALTH INSURANCE CO OF NEW YORK UNIT ACQUIRED A BLOCK OF MORE THAN 35000 ACCIDENT POLICIES REPRESENTING MORE THAN 11 MILLION OF ANNUALIZED PREMIUMS FROM NORTH AMERICAN CO FOR LIFE & HEALTH INSURANCE 9404110042 940411 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN MORTGAGE CORP 125 MILLION OF DEBENTURES DUE APRIL 18 2001 PRICED AT PAR TO YIELD 733 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR ONE YEAR AND WAS PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF MULTIPLE STEPUP MEDIUMTERM NOTES DUE APRIL 21 1999 PRICED INITIALLY AT PAR TO YIELD 63 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES APRIL 21 1995 TO 64 AND THEN TO 65 75 AND 875 IN EACH CONSECUTIVE YEAR THE ISSUE IS NONCALLABLE FOR ONE YEAR AND WAS PRICED AT A SPREAD OF 165 BASIS POINTS OVER ONEYEAR TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PEPSICO INC 500 MILLION OF FLOATINGRATE NOTES DUE APRIL 13 1995 PRICED AT PAR THROUGH LEAD MANAGER MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL FLOAT WEEKLY AND PAY QUARTERLY AT 125 BASIS POINTS ABOVE THREEMONTH TREASURY BILLS THE NONCALLABLE ISSUE IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP ENSERCH CORP 75 MILLION OF ADJUSTABLERATE PERPETUAL CUMULATIVE PREFERRED STOCK PRICED AT PAR WITH A 6375 DIVIDEND YIELD THE THREE MILLION SHARES WERE PRICED AT 25 EACH ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS CALLABLE ON MAY 1 1999 AT PAR AND IS RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE FIRST DIVIDEND WILL BE PAID AUG 1 THE DIVIDEND FLOATS AND PAYS QUARTERLY AT 87 OF THE HIGHER OF THE THREEMONTH 10YEAR OR 30YEAR CONSTANTMATURITY TREASURY THERE IS A COLLAR OF 45 TO 105 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO LACROSSE FOOTWEAR INC INITIAL OFFERING OF 15 MILLION COMMON SHARES PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY ROBERT W BAIRD & CO MEN'S WEARHOUSE INC ONE MILLION COMMON SHARES PRICED AT 29 A SHARE THROUGH UNDERWRITERS BY BEAR STEARNS & CO MONTGOMERY SECURITIES AND ROBERTSON STEPHENS & CO ACCORDING TO THE COMPANY TURBOCHEF INC INITIAL OFFERING OF 13 MILLION COMMON SHARES PRICED AT 5 EACH THROUGH UNDERWRITER WHALE SECURITIES CO FEDERAL HOME LOAN MORTGAGE CORP 1042 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1726 IS BACKED BY THE AGENCY'S CLASS 1663 AD REMICS FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF REMIC SECURITIES OFFERED BY JP MORGAN SECURITIES INC THE OFFERING SERIES 199477 IS BACKED BY THE PRINCIPALONLY AND INTERESTONLY PORTIONS OF THE AGENCY'S STRIPPED MORTGAGEBACKED SECURITY TRUST 260 THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 795 AND WEIGHTED AVERAGE MATURITY OF 354 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REMIC SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES TRUST 199478 IS BACKED BY PRINCIPALONLY STRIPS FROM STRIPS TRUST 251 CITIBANK NA 532 MILLION OF GLOBAL ASSETBACKED CERTIFICATES IN TWO TRANCHES ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES WERE SOLD THROUGH STANDARD CREDIT CARD MASTER TRUST 19943 A SPECIALPURPOSE VECHICLE THE 500 MILLION SENIOR TRANCHE WAS SOLD THROUGH UNDERWRITERS LED BY CITIBANK AND THE 32 MILLION SUBORDINATE TRANCHE WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE COLLATERAL FOR BOTH TRANCHES IS VISA AND MASTERCARD CREDIT CARD RECEIVABLES IN A SOFTBULLET STRUCTURE CREDIT ENHANCEMENT INCLUDES A 94 SENIOR TRANCHE AND A 6 SUBORDINATE TRANCHE THERE ALSO IS A 7 CASH COLLATERAL ACCOUNT OF WHICH 5 IS SHARED BETWEEN THE SENIOR AND SUBORDINATE PARTS AND 2 IS DEDICATED TO THE SUBORDINATE PART THE 500 MILLION OF SENIOR CLASS A CERTIFICATES WAS PRICED WITH A 68 COUPON AT 99845 TO YIELD 6838 A SPREAD OF 42 BASIS POINTS ABOVE THE 5875 TREASURYS MATURING IN 1999 THE EXPECTED AVERAGE LIFE AND EXPECTED FINAL MATURITY IS APRIL 7 1999 AND THE LEGAL FINAL MATURITY IS APRIL 7 2001 THE CERTIFICATES ARE RATED TRIPLEA BY MOODY'S S&P FITCH INVESTORS SERVICE INC AND DUFF & PHELPS CREDIT RATING CO THE 32 MILLION OF SUBORDINATE CLASS B CERTIFICATES WAS PRICED WITH A 7 COUPON AT 99865 TO YIELD 7038 A SPREAD OF 62 BASIS POINTS ABOVE THE 5875 TREASURYS MATURING IN 1999 THE SECURITIES HAVE AN APRIL 7 1999 AVERAGE LIFE AND EXPECTED FINAL MATURITY AND A APRIL 7 2001 LEGAL FINAL MATURITY THE BONDS ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P CITIBANK IS A CITICORP UNIT BANK NEDERLANDSE GEMEENTEN NETHERLANDS 100 MILLION SWISS FRANCS OF 4375 PUBLIC BONDS DUE MAY 25 1998 PRICED AT 1022 VIA CREDIT SUISSE SAID FEES 175 BAYERISCHE HYPOTHEKEN UND WECHSELBANK AG GERMANY 75 BILLION ITALIAN LIRE OF 805 EUROBONDS DUE NOV 3 1998 AT ISSUE PRICE 9985 VIA BANCA EUROMOBILIARE SPA BONDS TO TRADE INTERCHANGEABLY WITH 150 BILLION LIRE OF OUTSTANDING IDENTICAL BONDS FEES UNDISCLOSED COMMERZBANK OVERSEAS FINANCE NV GERMAN PARENT 150 MILLION SWISS FRANCS OF 45 PUBLIC BONDS DUE MAY 11 1999 PRICE AT 102375 VIA SWISS BANK CORP FEES TWO GRACECHURCH MORTGAGE FINANCE NO 2 PLC SPECIALPURPOSE VEHICLE 270 MILLION OF SENIOR CLASS A MORTGAGEBACKED FLOATINGRATE EURONOTES DUE DECEMBER 2028 AT ISSUE AND REOFFER PRICE PAR VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BONDS SECURED ON PORTFOLIO OF FIRST MORTGAGES ON RESIDENTIAL PROPERTIES IN ENGLAND AND WALES ORIGINATED BY BARCLAYS BANK PLC AND SCOTLIFE HOME LOANS NO 3 LTD PAYABLE QUARTERLY AT THREEMONTH POUND LONDON INTERBANK OFFERED RATE PLUS 25 BASIS POINTS CALLABLE AT PAR FROM MARCH 2001 IF NOT CALLED COUPON STEPS UP TO LIBOR PLUS 70 BASIS POINTS CALLABLE AT ANY INTEREST PAYMENT DATE IF PRINCIPAL OUTSTANDING FALLS BELOW 28 MILLION AVERAGE EXPECTED LIFE 351 YEARS FEES 02 SOCIETE NATIONALE DES CHEMINS DE FER FRANCAIS FRANCE 500 MILLION FRENCH FRANCS OF ZEROCOUPON EUROBONDS DUE JUNE 13 2004 AT ISSUE AND REOFFER PRICE 50687 VIA JP MORGAN ET COMPAGNIE SA AND CAISSE DES DEPOTS ET CONSIGNATIONS BONDS YIELD 694 A SPREAD OF 39 BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES 02 9404110041 940411 LETTERS TO THE EDITOR WHAT LAURENCE TRIBE DIDN'T DO FOR ME LAURENCE TRIBE IN HIS MARCH 24 LETTER CRITICIZING YOUR ARTICLE ABOUT HIS OUTRAGEOUS LEGAL FEES LAURENCE TRIBE'S FEES MAY WORK AGAINST HIM MARCH 17 MAKES A POOR ATTEMPT TO WIN SUPPORT OF HIS UNBELIEVABLE REQUEST FOR A 275 MILLION FEE FOR HANDLING MY APPEAL BY MISLEADING YOUR READERS MR TRIBE TRIES TO RATIONALIZE HIS FEE BY CLAIMING THAT HE SIGNED A DETAILED AGREEMENT WITH HIS CLIENT A MULTIMILLIONDOLLAR CORPORATION EXPERIENCED IN LEGAL AFFAIRS THAT IS RIDICULOUS AT THE TIME WE SIGNED THE FEE CONTRACT MR TRIBE KNEW VERY WELL THAT MY WIFE AND I WERE ALREADY IN PERSONAL BANKRUPTCY AND THAT THE CORPORATION LIGHTNING LUBE INC HAD NO MONEY AS FOR MY EXPERIENCE IN LEGAL AFFAIRS I LEFT SCHOOL WHEN I WAS 16 YEARS OLD AND HAD NEVER BEEN INVOLVED IN A LAWSUIT AGAINST ANYONE UNTIL THE WITCO SUIT IN WHICH MR TRIBE ACTED AS MY APPEAL'S ATTORNEY I NEVER EVEN KNEW THAT THERE WERE APPEAL ATTORNEYS UNTIL ABOUT A WEEK BEFORE THE END OF THE TRIAL WHEN MY ATTORNEY TOLD ME THAT WE HAD TO HIRE MR TRIBE TO PROTECT ANY PUNITIVE DAMAGE AWARD WE MIGHT RECEIVE I WAS SHOCKED BY MR TRIBE'S FEE DEMAND AND WOULD NOT SIGN IT UNTIL MY LAWYER AND MR TRIBE SHOWED ME ANOTHER CLIENT'S CONTRACT AND ASSURED ME THAT THE FEE HE DEMANDED WAS USUAL FOR CASES LIKE THIS EVEN SO THE FACT THAT MR TRIBE'S FEE AGREEMENT REQUIRED THAT THE AMOUNT OF HIS FEE BE KEPT CONFIDENTIAL AND THAT NO ONE WAS TO SEE THE FEE AGREEMENT SOUNDED AWFULLY STRANGE TO ME MR TRIBE DEFENDS HIS 275 MILLION BY SAYING THAT HE AND HIS COLLEAGUES PREVAILED IN UPHOLDING THE FULL 115 MILLION COMPENSATORY DAMAGE AWARD WHAT HE FAILED TO SAY IS THAT THAT PORTION OF THE JUDGMENT WAS NEVER IN JEOPARDY IN FACT HE FILED AN AFFIDAVIT IN MY BANKRUPTCY CASE SWEARING THAT IT WAS HIGHLY UNLIKELY THAT THE 115 MILLION COMPENSATORY AWARD WOULD BE THROWN OUT BY THE COURT OF APPEALS THIS WAS BEFORE THE DECISION CAME DOWN FROM THE THIRD CIRCUIT IN WHICH MR TRIBE AND HIS COLLEAGUES FAILED TO REINSTATE THE 50 MILLION PUNITIVE DAMAGE AWARD WHICH WAS THE REASON WHY HE WAS HIRED TO BEGIN WITH MR TRIBE'S STATEMENT THAT HE DID A GREAT JOB ON APPEAL NOT ONLY IGNORES THE FACT THAT HE LOST THE 50 MILLION PUNITIVE DAMAGE AWARD THAT HE WAS RETAINED TO PROTECT BUT BECAUSE HE FAILED TO RAISE A CERTAIN ISSUE ON APPEAL THE FEDERAL JUDGE WHO CONCEDED THAT WE OTHERWISE WOULD HAVE BEEN ENTITLED TO AN ADDITIONAL 630000 FROM WITCO RULED THAT BECAUSE OF THE FAILURE TO RAISE HIS MISTAKE ON APPEAL WE WERE NOT ENTITLED TO THOSE MONIES HOW SOMEONE CAN DEMAND 275 MILLION WHEN A FEDERAL JUDGE HAS ALREADY STATED THAT HE MADE A 650000 ERROR IS BEYOND ME IF MR TRIBE UNDERSTOOD OUR CASE HE NEVER WOULD HAVE LET HIS COLLEAGUE WHO NEVER HANDLED AN APPEAL ARGUMENT BEFORE SPLIT THE ORAL ARGUMENT IN THE APPEALS COURT WITH HIM IT WOULD BE VERY SAD IF A MAN LIKE MR TRIBE WERE EVER TO BECOME AN IMPORTANT PART OF THE LEGAL SYSTEM IN THIS GREAT COUNTRY I BELIEVE THAT HE REPRESENTS EVERYTHING THAT IS BAD ABOUT THE LEGAL SYSTEM 9404110040 940411 CORRECTIONS & AMPLIFICATIONS CHRYSLER CORP SAID ITS REPAIR OF A BRAKE BRACKET ON NEON SUBCOMPACTS IN FEBRUARY INVOLVED 1260 CARS THAT WERE IN CUSTOMER HANDS A FURTHER APPROXIMATELY 5800 VEHICLES WERE REPAIRED BEFORE THEY WERE SOLD CHRYSLER SAID PRODUCTION HAS SINCE RISEN TO 55000 AN ARTICLE FRIDAY DIDN'T SAY HOW MANY CARS WERE INVOLVED A LIST OF DOW JONES INDUSTRY GROUP COMPONENTS THAT RAN LAST MONDAY FAILED TO INCLUDE A SERIES OF CHANGES EFFECTIVE APRIL 1 AN UPDATED LIST OF DOW JONES INDUSTRY GROUP COMPONENTS APPEARS IN TODAY'S ISSUE THE MUNICIPAL BOND INDEX'S 20YEAR GENERAL OBLIGATIONS SUBINDEX SUPPLIED BY MERRILL LYNCH & CO MEASURED 645 UP 041 FOR THE WEEK ENDED APRIL 5 THE SUBINDEX SUPPLIED BY MERRILL LYNCH PIERCE FENNER & SMITH INC WAS MISSTATED IN FRIDAY'S EDITION AS 684 UP 080 9404110039 940411 WHAT'S NEWS WORLDWIDE US PLANES BOMBED BOSNIAN SERB FORCES NEAR A BESIEGED MUSLIM TOWN THE AIR STRIKES OUTSIDE GORAZDE IN SOUTHEASTERN BOSNIA REPRESENTED THE FIRST NATO ATTACK ON GROUND POSITIONS IN THE ALLIANCE'S 45YEAR HISTORY THE TWO AIR FORCE F16CS BASED IN ITALY DROPPED THREE 500POUND BOMBS ON WHAT WAS DESCRIBED AS A SERB COMMAND AND COMMUNICATIONS CENTER NATO AIRCRAFT WERE FLYING OVER THE AREA LAST NIGHT TO ASSESS DAMAGE CLINTON TERMED THE ACTION A CLEAR CALL TO THE SERBS TO PULL BACK FROM GORAZDE AND RESUME PEACE NEGOTIATIONS IT WASN'T CLEAR WHETHER NATO WAS PREPARED TO ACTUALLY PREVENT THE SERBS FROM CAPTURING GORAZDE WHICH HAS BEEN DECLARED A SAFE ENCLAVE BY THE UN FOREIGNERS FLED RWANDA'S CAPITAL WHERE THE DEATH TOLL WAS IN THE THOUSANDS FIRES BURNED ON THE OUTSKIRTS OF THE DEVASTATED CITY KIGALI AS FIGHTING ABATED SOMEWHAT THE ETHNIC CLASHES FORCED THE EVACUATION OF HUNDREDS OF EUROPEANS AND AMERICANS RELIEF OFFICIALS ESTIMATED AS MANY AS 10000 PEOPLE HAD BEEN KILLED IN KIGALI IN THREE DAYS OF SLAUGHTER INCLUDING THE OVERNIGHT MASSACRE BY SOLDIERS OF AT LEAST 100 PATIENTS IN A HOSPITAL BODIES WERE STREWN IN THE STREETS AND HUNDREDS OF CIVILIANS WERE SEEN LOOTING AID WAREHOUSES OUTSIDE THE RWANDAN CAPITAL THE HUTUDOMINATED ARMY AND MOSTLY TUTSI REBEL FORCES REPORTEDLY AGREED TO A CEASEFIRE BUT ITS EFFECTIVENESS WAS IN DOUBT HOSOKAWA'S RESIGNATION SET OFF A SCRAMBLE IN JAPAN FOR A SUCCESSOR THE PRIME MINISTER'S DECISION ANNOUNCED FRIDAY USHERS IN A PERIOD OF UNCERTAINTY OVER THE WEEKEND JAPAN'S RULING SEVENPARTY COALITION FAILED TO DECIDE ON A SUCCESSOR TO HOSOKAWA WHO SAID HE WAS QUITTING BECAUSE OF SCANDALS OVER HIS FINANCES A FRONTRUNNER TO SUCCEED HIM IS FOREIGN MINISTER HATA IN THE MEANTIME THE US WON'T BE ABLE TO MAKE MUCH PROGRESS ON TRADE A KEY WORRY AMONG ECONOMISTS IS THAT HOSOKAWA'S DEPARTURE WILL SQUELCH JAPAN'S MODEST ECONOMIC UPTURN SIGNS OF WHICH ALREADY HAD BEGUN TO APPEAR THE ISRAELI CABINET AGREED TO GRANT MORE THAN 18000 WORK PERMITS TO FOREIGN LABORERS IN AN EFFORT TO REPLACE PALESTINIANS FROM THE WEST BANK AND GAZA STRIP WHO ARE NOW BARRED FROM ENTERING ISRAEL TO GO TO WORK THE MOVE COMES IN THE WAKE OF A CAR BOMB ATTACK LAST WEEK THAT KILLED SEVEN ISRAELIS THE PLO AND ISRAEL RESUMED TALKS IN CAIRO BUT IT WAS UNLIKELY THE NEGOTIATORS WOULD BE ABLE TO WRAP UP AN AUTONOMY AGREEMENT BY WEDNESDAY AS HAD BEEN DEMANDED BY THE PALESTINIANS AUTHORITIES HAVE ALLEGED IN TWO SEPARATE INCIDENTS THAT NEW ENGLAND COLLEGE STUDENTS COMMITTED COMPUTER FRAUD TIED TO SOFTWARE PIRACY ON THE INTERNET MEANWHILE THE COMMISSIONER OF THE US PATENT AND TRADEMARK OFFICE OUTLINED STEPS AIMED AT IMPROVING HOW SOFTWARE PATENTS ARE AWARDED A BROKER RECALLED THAT HILLARY RODHAM CLINTON TRADED CATTLE FUTURES THROUGH HIS SPRINGDALE ARK OFFICE IN THE LATE 1970S BUT HE DENIED THAT HER 99000 PROFIT ON A 1000 INVESTMENT WAS THE RESULT OF FAVORITISM ROBERT L RED BONE PREVIOUSLY HAD SAID HE DIDN'T RECALL HANDLING MRS CLINTON'S COMMODITY TRADES MANDELA ACCUSED PRESIDENT DE KLERK OF INVOLVEMENT IN SOUTH AFRICAN VIOLENCE EITHER BY OMISSION OR COMMISSION THE AFRICAN NATIONAL CONGRESS LEADER AND DE KLERK HELD UNPRODUCTIVE TALKS FRIDAY WITH ZULU LEADERS BOYCOTTING THIS MONTH'S ALLRACE VOTE ENGINEERS REPAIRED A BROKEN RADAR INSTRUMENT ON SPACE SHUTTLE ENDEAVOUR ALLOWING THE SPACECRAFT TO BEGIN MAKING A THREEDIMENSIONAL MAP OF THE EARTH'S FEATURES SIX ASTRONAUTS ARE ABOARD THE CRAFT WHICH WAS LAUNCHED ON SATURDAY MUSLIM MILITANTS IN EGYPT KILLED A LEADING COVERT OPERATIVE IN THE GOVERNMENT'S INTELLIGENCE EFFORTS AGAINST THEM SATURDAY'S SLAYING IN CAIRO SUGGESTED THAT MILITANTS MAY HAVE PENETRATED SECURITY FORCES THE VICTIM WAS A 53YEAROLD GENERAL JOSE MARIA OLAZABAL OF SPAIN WON THE MASTERS GOLF CHAMPIONSHIP IN AUGUSTA GA BY TWO STROKES DIED KURT COBAIN 27 LEAD SINGER FOR THE GROUNDBREAKING GRUNGE ROCK BAND NIRVANA FRIDAY IN SEATTLE AN APPARENT SUICIDE 9404110038 940411 GRUMMAN TO LEAVE S&P 500 NEW YORK STANDARD & POOR'S CORP SAID IT WOULD REPLACE GRUMMAN CORP WITH US HEALTHCARE INC IN THE S&P 500STOCK INDEX AFTER THE CLOSE OF TRADING ON APRIL 15 GRUMMAN IS BEING ACQUIRED BY NORTHROP CORP US HEALTHCARE A BLUE BELL PA HEALTH MAINTENANCE ORGANIZATION WILL BE REPLACED IN THE S&P MIDCAP 400 INDEX BY HUBBELL INC ORANGE CONN A MAKER OF ELECTRICAL AND ELECTRONIC PRODUCTS 9404110036 940411 PROFIT SLIDE FOR TOBACCO MAY BE ENDING BRIGHTER OUTLOOK IS SEEN FOR CIGARETTE CONCERNS DESPITE WEAK QUARTER BY MARIA MOOSHIL SPECIAL TO THE WALL STREET JOURNAL NEW YORK FIRSTQUARTER RESULTS FOR TOBACCO COMPANIES WILL PROVIDE INVESTORS WITH THE LAST OF A SERIES OF PAINFUL LOWER EARNINGS COMPARISONS WROUGHT BY LAST YEAR'S CIGARETTE PRICE WAR THEME ONE IS THIS IS THE LAST OF THE REALLY LOUSY QUARTERS DEAN WITTER REYNOLDS ANALYST LAWRENCE ADELMAN SAID THEME TWO IS THE INDUSTRY IS GOING THROUGH A PARTICULARLY DIFFICULT PERIOD IN TERMS OF THE REGULATORY AND LEGISLATIVE ENVIRONMENT AND BECAUSE OF THOSE ISSUES LESS RELATIVE INTEREST IS BEING PUT ON OPERATING FUNDAMENTALS STRONG EARNINGS COMPARISONS FOR THE TWO LARGEST CIGARETTE COMPANIES PHILIP MORRIS COS AND RJR NABISCO HOLDINGS CORP ARE EXPECTED FOR THE REST OF THE YEAR BEGINNING WITH THE SECOND QUARTER ENDING JUNE THE OUTLOOK IS BASED ON THE DEVASTATING HIT EARNINGS TOOK IN LAST YEAR'S SECOND THIRD AND FOURTH QUARTERS FOLLOWING A PRICE CUT IN THE PREMIUMPRICED CIGARETTE CATEGORY THAT TOOK EFFECT IN MAY THAT ACTION REDUCED PHILIP MORRIS'S PRETAX PROFIT BY 2 BILLION LAST YEAR THE VERY SIGNIFICANT THING IS NOT FIRSTQUARTER NUMBERS GOLDMAN SACHS & CO ANALYST MARC I COHEN SAID THE SIGNIFICANT THING IS MOVING THROUGH THIS CYCLE AND INTO A TRANSITION WHERE THE TWO LARGER COMPANIES AT LEAST WILL MOVE INTO A PERIOD OF ACCELERATION OF BOTTOMLINE GROWTH BUT INVESTORS WILL HAVE TO STRUGGLE THROUGH LOWER FIRSTQUARTER EARNINGS AND CONTINUING ATTACKS ON THE INDUSTRY FIRSTQUARTER EARNINGS ARE EXPECTED TO BE DOWN ABOUT 40 FOR RJR NABISCO AND AMERICAN BRANDS INC AND NEARLY 10 FOR PHILIP MORRIS AS IN RECENT QUARTERS LOWER DOMESTIC TOBACCO OPERATING PROFITS WILL OVERPOWER RELATIVE STRENGTH IN INTERNATIONAL TOBACCO AND FOOD OPERATIONS FOR PHILIP MORRIS AND RJR NABISCO AMERICAN BRANDS HOWEVER IS GETTING HIT FROM ALL SIDES IN ADDITION TO A LARGE DECLINE IN US TOBACCO PROFITS PAINEWEBBER INC ANALYST EMANUEL GOLDMAN SEES A 25 PLUNGE IN OPERATING PROFITS FOR THE COMPANY'S UKBASED INTERNATIONAL TOBACCO DIVISION BECAUSE WHOLESALERS STOCKED UP ON INVENTORY IN THE FOURTH QUARTER BEFORE A UK TAX INCREASE GOLDMAN SACHS ANALYST MR COHEN SAID THE COMPANY'S TAX RATE WILL BE ABOUT THREE PERCENTAGE POINTS HIGHER THAN LAST YEAR'S AND THAT REALIZED INVESTMENT GAINS IN THE COMPANY'S INSURANCE UNIT WILL BE SUBSTANTIALLY LOWER THAN THE UNUSUALLY HIGH GAINS IN THE YEARAGO QUARTER THE ONLY TOBACCO COMPANY EXPECTED TO BETTER YEARAGO EARNINGS IS NONCIGARETTE MAKER UST INC EARNINGS FOR THE MAKER OF MOIST SMOKELESS TOBACCO ARE EXPECTED TO RISE 11 TO 41 CENTS A SHARE FROM LAST YEAR'S 37 CENTS ON THE STRENGTH OF PRICING AND VOLUME GAINS ANALYSTS EXPECT RJR NABISCO'S COOKIE AND CRACKER BUSINESS BOLSTERED BY SUCCESSFUL INNOVATIVE PRODUCTS TO SHOW PERCENTAGE GROWTH IN THE MIDTOHIGH SINGLE DIGITS DAVID ADELMAN LAWRENCE'S SON WHO FOLLOWS RJR NABISCO FOR DEAN WITTER SAID THE COMPANY HAS TROUNCED ITS MAIN COMPETITOR UNITED BISCUITS PLC'S KEEBLER CO WHICH HAS DONE A POOR JOB OF DEVELOPING AND MARKETING NEW PRODUCTS IN INTERNATIONAL TOBACCO RJR NABISCO'S OPERATING PROFITS AND VOLUMES ARE EXPECTED TO IMPROVE STRONGLY OVER LAST YEAR FROM EXPANSION INTO EASTERN EUROPE AND RUSSIA ANALYSTS ARE LOOKING FOR AN INCREASE OF ABOUT 10 TO 12 IN PHILIP MORRIS'S DOMESTIC UNIT SHIPMENTS BUT WARNED THAT INVESTORS SHOULDN'T BE MISLED INTO THINKING DOMESTIC TOBACCO IS A GROWTH BUSINESS SHIPMENTS LAST YEAR WERE LIGHT BECAUSE WHOLESALERS HAD LOADED UP ON PRODUCT IN THE 1992 FOURTH QUARTER IN ADVANCE OF A JAN 1 1993 PRICE INCREASE AS THE EARNINGS PICTURE BRIGHTENS FOR TOBACCO COMPANIES THIS YEAR EFFORTS TO RESTRICT BAN AND TAX CIGARETTE SMOKING IN THE US PROMISE TO DOG THE INDUSTRY IN THE PAST FEW MONTHS THE DEBATE SURROUNDING TOBACCO COMPANIES HAS INTENSIFIED WITH CALLS BY THE FOOD AND DRUG ADMINISTRATION TO REGULATE CIGARETTES AS A DRUG AND PROPOSALS BY CONGRESS TO BAN SMOKING IN ALL PUBLIC PLACES MANY ANALYSTS SAID THE REGULATORY AND LEGISLATIVE ISSUES ARE NOT NEW IT'S JUST THAT THE HEAT HAS BEEN INCREASED TO FURTHER THE CLINTON ADMINISTRATION'S AGENDA THE PRESIDENT HAS ASKED CONGRESS TO RAISE THE EXCISE TAX TO 99 CENTS A PACK FROM 24 CENTS TO HELP PAY FOR HEALTHCARE REFORM SANFORD BERNSTEIN ANALYST GARY BLACK SAID THE GOVERNMENT HAS LONG TAXED AND RESTRICTED SMOKING BUT THE PERCENTAGE OF SMOKERS WHO QUIT HAS REMAINED STEADY AT ABOUT 2 TO 3 ANNUALLY YOU'D HAVE THOUGHT THAT WOULD HAVE ACCELERATED HE SAID IN SPITE OF ALL THE EXOGENOUS FACTORS MR BLACK SAID THE TOBACCO INDUSTRY'S FUNDAMENTAL PROSPECTS REMAIN STRONG SUPERIOR EARNINGS GROWTH AND HIGH DIVIDEND YIELDS FOUND IN PHILIP MORRIS AND UST WILL ULTIMATELY DRIVE THESE STOCKS HE SAID 9404110035 940411 COMMODITIES WHEATFUTURES PRICES ARE ESPECIALLY VOLATILE BECAUSE OF DRY WEATHER IN THE SOUTHERN PLAINS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE WEATHER IN THE SOUTHERN PLAINS IS BEGINNING TO DOMINATE THE PRICES OF THE US WHEAT CROP WHEAT IS USUALLY THE FIRST CROP OF THE YEAR THAT IS HEAVILY INFLUENCED BY WEATHER FORECASTS BECAUSE IT IS HARVESTED THE EARLIEST DRY WEATHER THIS YEAR IS MAKING WHEAT PRICES PARTICULARLY VOLATILE OKLAHOMA THE TEXAS PANHANDLE REGION AND LARGE PARTS OF KANSAS ARE REPORTING DRIER WEATHER THAN USUAL IN THE EARLY STAGES OF THE GROWING SEASON FOR WINTER WHEAT WHEN MARKETS ARE ALREADY JITTERY ABOUT THE PROSPECTS FOR THIS YEAR'S CROP AT THE KANSAS CITY BOARD OF TRADE JULY HARD RED WINTER WHEAT FELL 275 CENTS TO SETTLE AT 33125 A BUSHEL FRIDAY AT THE CHICAGO BOARD OF TRADE SOFT RED WINTER WHEAT FOR JULY DELIVERY SETTLED AT 333 A BUSHEL DOWN 25 CENTS THE DROP IN PRICES CAME IN THE WAKE OF REPORTS THAT SOME AREAS OF THE WHEATGROWING REGIONS COULD AT LAST SEE SOME RAIN EARLY THIS WEEK LAST WEEK PRICES MOVED SHARPLY HIGHER ON CONCERNS ABOUT RAINFALL AND SPECULATION THAT THE CHINESE MIGHT BE LOOKING FOR GRAIN SUPPLIES MOST ANALYSTS NOW DISMISS THE REPORTED CHINESE INTEREST AS PREMATURE BUT SAY THEY ARE CONTINUING TO MONITOR THE RAINFALL SITUATION CLOSELY THESE FEW DAYS ARE THE BEST OPPORTUNITY FOR RAIN FOR THE NEXT LITTLE WHILE SAID PETER LEAVITT CHIEF EXECUTIVE OFFICER OF WEATHER SERVICES CORP IN BEDFORD MASS HE ADDED THAT SOUTHERN NEBRASKA KANSAS OKLAHOMA AND PARTS OF TEXAS HAVE FACED DRIER CONDITIONS THAN USUAL THIS YEAR THE SITUATION IS BEING SAVED TO A CERTAIN EXTENT BY THE FACT THAT THERE'S MOISTURE IN THE SUBSOIL FROM LAST YEAR MR LEAVITT SAID NOW WHAT'S NEEDED IS ENOUGH RAIN TO GET THE WHEAT GOING TO ALLOW IT TO REACH THE SUBSOIL MOISTURE MAX WILLIAMS WHO OPERATES A GRAIN ELEVATOR IN WILMORE KAN SAID THAT FARMERS IN HIS AREA WOULD BE CONTENT WITH HALF AN INCH OF RAIN THE APRIL RAINS ARE THE MOST IMPORTANT WHEN THE WHEAT COMES OUT OF DORMANCY HE ADDED THERE PROBABLY ARE SOME FIELDS THAT ARE DAMAGED ALREADY BUT THE REST COULD RECOVER WITH SOME TIMELY RAIN BILL BIEDERMAN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC IN CRYSTAL LAKE ILL SAID HE HAS CUT ESTIMATES OF THE SIZE OF THIS YEAR'S HARD RED WINTER WHEAT CROP BY 3 BELOW THE INITIAL PROJECTED YIELD OF 3984 BUSHELS PER ACRE DUE TO THE LACK OF RAINFALL WHEAT STOCKPILES APPEAR RELATIVELY STABLE WITH THE AGRICULTURE DEPARTMENT REPORTING 588 MILLION BUSHELS IN STORAGE NOW COMPARED WITH 529 MILLION BUSHELS A YEAR EARLIER BUT THE TIGHT SUPPLY OF CORN HAS FORCED FARMERS IN SOME PARTS OF THE COUNTRY TO FEED WHEAT TO THEIR LIVESTOCK WHICH MAY DRIVE DOWN THOSE STOCK LEVELS AND HELP MOVE PRICES HIGHER DANIEL BASSE MARKETRESEARCH DIRECTOR OF AGRESOURCE CO IN CHICAGO SAID SOME OF THE WEATHER CONCERN MAY BE OVERDONE YOU DON'T NEED A LOT OF RAINFALL FOR THINGS TO TURN AROUND HE SAID THE MAXIMUM NEED FOR RAIN IS IN ABOUT A MONTH'S TIME WHEN WHEAT HEADS BEGIN TO EMERGE AND THE WHEAT FLOWERS ONLY IF THE REGION STAYS BONE DRY UNTIL THEN WOULD THERE BE SERIOUS CAUSE FOR CONCERN HE CONTENDED GRAINMARKET ANALYSTS SAID THEY WILL BE WATCHING THE WEATHER CLOSELY OVER THE NEXT FEW DAYS TO SEE WHERE RAIN HAS FALLEN AND TO DETERMINE QUANTITIES MEANWHILE TRADERS ARE LOOKING AHEAD TO THE IMPACT THAT THE STOCK AND BOND MARKETS WILL HAVE ON COMMODITYFUTURES PRICES IN GENERAL WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH & CO WARNED THAT FURTHER DECLINES IN EQUITIES AND FIXEDINCOME INVESTMENTS COULD ONCE AGAIN DEPRESS COMMODITY PRICES THERE ARE CONCERNS ABOUT A SHARP BREAK IN THOSE MARKETS CAUSING PRESSURE ON FUNDS TO LIQUIDATE THEIR HOLDINGS HE SAID AT THE VERY LEAST THERE WILL BE PSYCHOLOGICAL PRESSURE ON THE MARKET A WEAKNESS IN THE BOND MARKET COULD BE PARTICULARLY BAD NEWS FOR COPPER PRICES HE ADDED WHICH ARE HURT BY THE PROSPECT OF HIGHER INTEREST RATES AND LOWER HOUSING STARTS WIDESPREAD SELLING BY FUNDS CAUSED THE PRICES OF MOST COMMODITY FUTURES TO DROP EARLY LAST WEEK IN THE WAKE OF A SHARP DECLINE IN THE STOCK AND BOND MARKETS MR O'NEILL SAID THAT MODERATE INCREASES IN IMPORTANT PRICING DATA TO BE RELEASED THIS WEEK HAVE ALREADY BEEN BUILT INTO THE PRICES OF MOST COMMODITIES AND AREN'T LIKELY TO HAVE ANY IMPACT ON THE MARKET 9404110034 940411 HEALTHCARE CONSOLIDATIONS WILL TRIM SOME MEDICALDEVICE COMPANY GROWTH BY FELICIA PAIK SPECIAL TO THE WALL STREET JOURNAL NEW YORK SOME MEDICAL DEVICE COMPANIES WILL POST SOFTER SALES AND EARNINGS GROWTH FOR THE FIRST QUARTER BECAUSE OF COST CONTROLS IMPLEMENTED IN THE CONSOLIDATION OF HOSPITAL COMPANIES AND MANAGED CARE PROVIDERS THIS QUARTER PUTS INTO SHARP FOCUS THE HAVES AND THE HAVENOTS HAMBRECHT & QUIST ANALYST KURT KRUGER SAID LARGE BROADBASED COMPANIES HAVE BEEN SLUGGISH BUT SINGLEPRODUCT COMPANIES SUCH AS HEART TECHNOLOGY INC OR MEDIUMSIZE COMPANIES SUCH AS CORDIS CORP WITH ANNUAL SALES OF 250 MILLION TO 350 MILLION WILL PERFORM WELL FOR THE QUARTER ENDED MARCH 31 MR KRUGER SAID ALTHOUGH THE NUMBER OF SURGICAL PROCEDURES PERFORMED HAS INCREASED AND HOSPITALS SEEM TO BE LOOSENING PURSE STRINGS IN ORDER TO RESTOCK INVENTORIES AFTER ALMOST A YEAR OF COSTCUTTING MOVES PRECIPITATED BY HEALTHCARE REFORM PROPOSALS ANALYSTS ARE CAUTIOUS ABOUT PROSPECTS BECAUSE PROCEDURES ARE UP IT GIVES THE MEDICAL DEVICE INDUSTRY A FALSE SENSE OF SECURITY SAID GLENN REICIN AN ANALYST WITH MORGAN STANLEY & CO WHO SAID THE PROCEDURES GROWTH RATE IS ABOUT 3 TO 5 GREATER THAN LAST YEAR ROBINSON HUMPHREY CO ANALYST JOHN RUNNINGEN SAID THAT ONCE HEALTHCARE PROVIDERS SETTLE DOWN AFTER THE LATEST ROUND OF MERGERS AND ACQUISITIONS HOSPITALS SEEKING ECONOMIES OF SCALE WILL SQUEEZE EVEN MORE PRICE CONCESSIONS OUT OF MEDICAL DEVICE COMPANIES ON AVERAGE MEDICAL DEVICE COMPANIES WILL SEE GROWTH IN SALES OF ABOUT 5 TO 10 IN THE FIRST QUARTER AND IN EARNINGS OF ABOUT 10 TO 15 TRADITIONALLY THESE COMPANIES HAVE SEEN INCREASES IN SALES AND EARNINGS OF 15 TO 20 ANALYSTS SAID MR KRUGER SAID COMPANIES WITH SINGLE OR NARROW PRODUCT LINES SHOULD SHOW BETTER RESULTS THAN LARGER COMPANIES HE SAID SUCH COMPANIES INCREASED THEIR MARKET SHARE AFTER RECENT FOOD AND DRUG ADMINISTRATION APPROVAL OF ADVANCED DEVICES FOR EXAMPLE HEART TECHNOLOGY WILL SHOW SALES AND EARNINGS INCREASES COMPLETELY OFF THE CHART IN THE FIRST QUARTER MR KRUGER SAID BECAUSE OF SALES OF ITS ROTABLATOR AN ATERIAL PLAQUE CUTTING SYSTEM WHICH RECEIVED FDA APPROVAL IN MID1993 MR KRUGER SAID HE EXPECTS HEART TECHNOLOGY TO POST FIRSTQUARTER REVENUE OF 105 MILLION AND EARNINGS OF FIVE CENTS A SHARE COMPARED WITH REVENUE OF 13 MILLION AND A LOSS OF 12 CENTS A SHARE IN THE YEARAGO QUARTER AN INSTITUTIONAL BROKERS ESTIMATE SYSTEM SURVEY OF SEVEN ANALYSTS ESTIMATED HEART TECHNOLOGY WILL EARN FOUR CENTS A SHARE IN THE FIRST QUARTER THE 1993 FIRSTQUARTER LOSS WAS RELATED TO A RECALL OF ITS ROTABLATOR SYSTEM IN JUNE 1992 AND REFLECTED COSTS OF REPLACEMENT AND RESTARTING PRODUCTION MR RUNNINGEN THE ROBINSON HUMPHREY ANALYST SAID HE EXPECTS SOFAMOR/DANEK GROUP INC A MAKER OF SPINAL IMPLANT DEVICES TO EARN 32 CENTS A SHARE IN THE FIRST QUARTER COMPARED WITH 24 CENTS IN THE YEARAGO PERIOD A 33 INCREASE MR KRUGER SAID HE EXPECTS CORDIS CORP TO RECORD 21 GROWTH IN SALES FROM THE 642 MILLION OF THE YEARAGO FISCAL THIRD QUARTER ENDED MARCH 31 AND BOSTON SCIENTIFIC CORP WILL SEE A 19 SALES INCREASE FROM THE 889 MILLION OF THE YEARAGO PERIOD HE SAID ACCORDING TO IBES BOSTON SCIENTIFIC IS EXPECTED TO EARN 19 CENTS A SHARE COMPARED WITH 15 CENTS A YEAR AGO A 26 INCREASE CR BARD INC SHOULD EARN 43 CENTS A SHARE COMPARED WITH 39 CENTS IN LAST YEAR'S FIRST QUARTER AND CORDIS SHOULD EARN 62 CENTS A SHARE COMPARED WITH 53 CENTS IN THE YEARAGO PERIOD ANALYSTS SAID LARGE COMPANIES SUCH AS BAXTER INTERNATIONAL INC AND BECTON DICKINSON & CO WILL SEE AN EASING IN SALES GROWTH BECAUSE OF INDUSTRY COSTCONTAINMENT RESULTING IN SLOWER FIRSTQUARTER EARNINGS GROWTH AN IBES SURVEY OF 12 ANALYSTS ESTIMATED THAT BAXTER WILL EARN 45 CENTS A SHARE COMPARED WITH 43 CENTS IN LAST YEAR'S FIRST QUARTER AN INCREASE OF LESS THAN 5 AND AN IBES SURVEY OF 10 ANALYSTS FORECASTS BECTON DICKINSON WILL EARN 77 CENTS A SHARE IN THE FISCAL SECOND QUARTER COMPARED WITH 76 CENTS A YEAR AGO HOWEVER JOHNSON & JOHNSON SHOULD POST STRONG RESULTS BECAUSE SALES IN ITS PHARMACEUTICALS BUSINESS HAVE BEEN COMPENSATING FOR ITS MEDICAL DEVICE SECTOR SAID MR REICIN THE MORGAN STANLEY ANALYST MR REICIN SAID JOHNSON & JOHNSON SHOULD REPORT EARNINGS OF 85 CENTS A SHARE COMPARED WITH 77 CENTS A YEAR AGO US SURGICAL CORP WILL REPORT ITS FOURTHSTRAIGHT QUARTER IN THE RED AND ITS PROBLEMS ARE A REFLECTION OF THE CHANGING HEALTHCARE LANDSCAPE THE COMPANY SAID IT EXPECTS TO POST FIRSTQUARTER LOSSES NARROWER THAN THE 26 CENTS A SHARE LOSS REPORTED IN THE 1993 FOURTH QUARTER WHICH INCLUDED AN 130 MILLION RESTRUCTURING CHARGE ON APRIL 1 THE COMPANY COMPLETED ITS COSTCUTTING PROGRAM WHICH INCLUDED A WORK FORCE REDUCTION OF 20 AND A 150 MILLION ELIMINATION OF OPERATING AND FIXED MANUFACTURING COSTS 9404110033 940411 MARKETING & MEDIA CBS IN PROGRAMMING VENTURE NEW YORK CBS INC FORMED A JOINT VENTURE WITH KEENEN IVORY WAYANS' IVORY WAY PRODUCTIONS TO DEVELOP AND PRODUCE TELEVISION PROGRAMMING MR WAYANS IS A FILM AND TELEVISION DIRECTOR PRODUCER AND ACTOR WHO IS BEST KNOWN FOR THE SERIES IN LIVING COLOR WHICH AIRS ON NEWS CORP'S FOX NETWORK MR WAYANS WILL BE HEAD OF THE NEW COMPANY WHICH WILL BE EQUALLY OWNED BY THE TWO PARTNERS CBS WILL HAVE RIGHT OF FIRST REFUSAL FOR PROJECTS FROM THE VENTURE 9404110032 940411 ENTERTAINMENT SUPERMODELS HAVE LAUNCHED A THOUSAND SPINOFFS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL FOR SUPERMODELS THESE DAYS FASHION IS JUST A SIDELINE THEIR REAL JOBS ARE AS MEDIA CONGLOMERATES THE GIRLS AS THEY'RE CALLED IN THE FASHION INDUSTRY HAVE ACQUIRED A NEW KIND OF STATURE THEY'RE FEATURED IN MOVIES AND TELEVISION SHOWS THEY'RE THE FOCUS OF CABLE CHANNELS AND MAGAZINES THEY ENDORSE PRODUCTS FROM SOFT DRINKS TO GYM SHOES FASHION IS THE HOT SCENE OF THE 90S SAYS DOUG HERZOG SENIOR VICE PRESIDENT FOR PROGRAMMING AT MTV THE BIGGEST STAR AT MTV THESE DAYS IS NOT A ROCK SINGER BUT THE MODEL CINDY CRAWFORD HOST OF THE MTV SERIES HOUSE OF STYLE A BEHINDTHESCENES LOOK AT THE FASHION WORLD THE BURGEONING INTEREST IN SUPERMODELS AND THEIR UNIVERSE IS FUELED BY ENTERTAINMENT AND MEDIA COMPANIES WHICH HOPE TO STRIKE GOLD WHEN A BEAUTIFUL FACE BECOMES A HOUSEHOLD NAME AND BY THE MODELS THEMSELVES WHO ARE PROVING TO BE SHREWD SELFPROMOTERS ADEPT AT CREATING WIDELY MARKETABLE IMAGES AMERICANS LOVE GLAMOUR ENTERTAINMENT EXECUTIVES SAY AND THE MODELS ARE FILLING THE VOID LEFT WHEN HOLLYWOOD STARS RETREATED BEHIND THEIR CAUSES AND CHILDREN THESE MODELS ARE BECOMING SMALL ENTERTAINMENT COMPANIES THEY ARE MINICONGLOMERATES SAYS DAVID PECKER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HACHETTE FILIPACCHI MAGAZINES WHICH PUBLISHES ELLE MAGAZINE AND ELLE'S LATEST SPINOFF TOP MODEL A MODEL IS A BRAND WHO BEGINS HER CAREER ON THE RUNWAY MR PECKER EXPLAINS AND IF THINGS WORK OUT ENDS UP ON A CALENDER OR IN A MAJOR MOTION PICTURE MR PECKER SAYS HE WAS RECENTLY SHOWN A COMPUTER SCREEN SAVER THAT FEATURED CLAUDIA SCHIFFER THE SCREEN SAVER IS NOT YET COMMERCIALLY AVAILABLE MS CRAWFORD PRESIDENT OF CRAWDADDY INC A HOLDING COMPANY THAT OVERSEES HER VARIOUS ENTERPRISES EARNS MORE THAN 5 MILLION A YEAR AND IS CONSIDERED ONE OF THE MOST SUCCESSFUL OF THE EMPIREBUILDERS PAYING UNUSUAL ATTENTION TO HER CAREFULLY CULTIVATED CLIENTS LIKE PEPSI MS CRAWFORD SURPRISED PEPSI'S TOP EXECUTIVES WHEN SHE PROPOSED ATTENDING A BOTTLERS' CONVENTION TO LEARN MORE ABOUT THE BUSINESS CERTAINLY AS A CELEBRITY IT WOULD NOT BE AT THE TOP OF YOUR LIST OF THINGS TO DO SAYS CRAIG WEATHERUP PRESIDENT AND CHIEF EXECUTIVE OF PEPSICOLA A UNIT OF PEPSICO MS CRAWFORD'S PLANS FOR THE FUTURE I'M INTERESTED IN MORE PROJECTS WHERE I'M A PROFIT PARTICIPANT SHE SAYS JIM BOLGER NEW ZEALAND'S PRIME MINISTER IS SCHEDULED TO APPEAR WITH THE MODEL ELLE MACPHERSON LATER THIS MONTH AT THE OPENING OF A FACTORY FOR A LINGERIE COMPANY ASSOCIATED WITH THE AUSTRALIAN MODEL ELLE IS A GLOBAL FRANCHISE SAYS HER MANAGER STUART CAMERON WHO HELPS HER PRESIDE OVER ELLE MACPHERSON INC THE HOLDING COMPANY THAT HAS INTERESTS IN VIDEO FILM AND APPAREL SHE CONTROLS A MULTIMILLIONDOLLAR CORPORATION MODELS ARE SHOWING UP IN OTHER UNLIKELY PLACES TOO I HAVE MY OWN SHOE SAYS GABRIELLE REECE A 6FOOT 3INCH MODEL AND PROFESSIONAL VOLLEYBALL PLAYER NIKE JUST INTRODUCED ITS AIR TRAINER SET WITH A G ON THE HEEL LIKE MS CRAWFORD THE 24YEAROLD MS REECE ADEPTLY CULTIVATES HER COMMERCIAL INTERESTS AND IS WARY OF OVEREXPOSURE I DON'T WANT TO BE EVERYWHERE YOU TURN SHE SAYS I WOULD LIKE TO KEEP IT LESS DILUTED FOR MEDIA GIANTS TAPPING INTO THIS TREND IS RISKY SUPERMODELS MAY FALL OUT OF FAVOR WITH THE FICKLE PUBLIC BECAUSE OF OVEREXPOSURE AS SOON AS ANY TREND GETS THIS BIG IT'S NOT FAR FROM DEATH SAYS LUC SANTE A NEW YORKBASED CULTURAL CRITIC NOW HOWEVER THERE IS NO SHORTAGE OF COMPANIES TRYING TO THINK OF NEW WAYS TO PUT MODELS' IMAGES INTO LIVING ROOMS ABBEVILLE PRESS INC RECENTLY PUBLISHED DESIGNS BY GIANNI VERSACE A COFFEETABLE BOOK OF PHOTOS OF MODELS IN VERSACE CLOTHING ANTHONY GUCCIONE THE SON OF PENTHOUSE PUBLISHER BOB GUCCIONE IS TRYING TO RAISE 60 MILLION TO LAUNCH FADTV A 24HOUR CABLE CHANNEL DEVOTED TO THE FASHION WORLD FADTV IS ONE OF AT LEAST TWO FASHION CHANNELS IN DEVELOPMENT MR GUCCIONE SAYS HIS NETWORK CAN DO FOR THE FASHION BUSINESS WHAT MTV DID FOR THE MUSIC INDUSTRY THE FUTURE OF FASHION IS TELEVISION HE SAYS MR GUCCIONE BELIEVES THE POPULARITY OF MODELS IS THE RESULT OF THE LOWKEY PRIVATE LIVES NOW FAVORED BY MANY MOVIE STARS THE MODELS HAVE STEPPED INTO THE SPOTLIGHT THAT THE MOVIE STARS HAVE VACATED HE SAYS NATURE ABHORS A VACUUM BLAME PART OF THE FASHION HOOPLA ON THE FASTGROWING WORLD OF CABLE TELEVISION WITH THE PROLIFERATION OF CABLE CHANNELS WE ARE CREATING A TECHNOLOGICAL MONSTER THAT NEEDS MORE AND MORE PROGRAMMING TO FEED IT SAYS THOMAS E PALMIERI JR A FORMER EXECUTIVE AT MTM ENTERTAINMENT WHO IS DEVELOPING A RIVAL FASHION CHANNEL FOR CABLE MR PALMIERI SAYS THE FASHION WORLD IS IDEAL FOR CABLE BECAUSE THE RUNWAY SHOWS ARE VIDEOTAPED PROVIDING AN INEXPENSIVE SOURCE OF PROGRAMMING AND THE FASHION HOUSES AND COSMETICS COMPANIES ARE NATURAL ADVERTISERS PERHAPS THE MOST OVERT ATTEMPT TO CAPITALIZE ON THE INTEREST IN MODELS IS ELLE'S TOP MODEL A NEW MAGAZINE FOR 17TO25YEAROLDS THAT ADULATES THE MODELS FOCUSING ON ONE BIG NAME EACH ISSUE HER BEAUTY TALENT KINDNESS AND PROFESSIONALISM EXPLAIN CLAUDIA'S FORMIDABLE SUCCESS ACCORDING TO THE TEXT IN ONE OF THE 52 PAGES IN THE PREMIERE ISSUE DEVOTED TO MS SCHIFFER THE MAGAZINE ALSO FEATURES AN ARTICLE ON MODELS' BOYFRIENDS HEADLINED THE BOYFRIENDS THE MOST ENVIED MEN OF OUR TIMES FOX BROADCASTING CO RECENTLY AIRED A MADEFORTV MOVIE MODEL BY DAY CRIMEFIGHTER BY NIGHT AND HAS TWO MORE SHOWS BASED ON MODELS IN DEVELOPMENT FACE VALUE THE ADVENTURES OF SIX MODELS SHARING A NEW YORK APARTMENT AND MODELS INC WHICH WILL TAKE THE AUDIENCE BEHIND THE SCENES OF THE EXCITING WORLD OF HIGHFASHION MODELING AND MODELING WHILE LONG A SOURCE OF MOVIE STARS IS INCREASINGLY BECOMING THE FOCUS OF MOVIES THE FASHION WORLD IS ABUZZ ABOUT ROBERT ALTMAN'S FASHION MOVIE WHICH IS IN PRODUCTION LATELY SAYS ISAAC MIZRAHI A FASHION DESIGNER WHOM ONE OF MR ALTMAN'S ACTORS USED FOR INSPIRATION THERE ARE MORE PHOTOGRAPHERS BACKSTAGE THAN IN FRONT OF THE STAGE 9404110031 940411 TECHNOLOGY MOLECULAR BIOSYSTEMS SETS FUND TO SETTLE LAWSUIT SAN DIEGO MOLECULAR BIOSYSTEMS INC SAID IT WOULD CREATE A 45 MILLION FUND TO SETTLE A SHAREHOLDER LAWSUIT THAT CHARGED IT WITH MISLEADING INVESTORS ABOUT PROSPECTS FOR ITS ALBUNEX CARDIACIMAGINING PRODUCT THE DEVELOPER OF CONTRAST AGENTS USED IN MEDICAL IMAGING SAID IT WOULD REPORT A CHARGE OF 37 MILLION TO EARNINGS FOR ITS FOURTH QUARTER ENDED MARCH 31 IT SAID 800000 OF THE TOTAL SETTLEMENT AMOUNT WHICH COMPRISES 3 MILLION IN CASH AND 15 MILLION IN MOLECULAR BIOSYSTEMS COMMON STOCK WOULD BE CONTRIBUTED BY INSURANCE COVERING OFFICERS AND DIRECTORS MOLECULAR SAID IT MADE ITS DENIAL OF ANY WRONGDOING PART OF THE SETTLEMENT AGREEMENT AND CALLED THE SETTLEMENT THE ONLY PRUDENT COURSE TO AVOID UNCERTAINTIES AND RESOURCE DRAIN FROM THE LITIGATION 9404110030 940411 WMX SELLS OPTIONS IN BUYBACK STRATEGY INVOLVING LESS CASH OAK BROOK ILL WMX TECHNOLOGIES INC HAVING SPENT HEAVILY ON STOCK REPURCHASES LAST YEAR EVEN AS THE COMPANY'S SHARES FELL SHARPLY HAS SWITCHED TO A BUYBACK STRATEGY THAT INITIALLY AT LEAST INVOLVES FAR LESS CASH SELLING PUT OPTIONS ON ITS STOCK A COMPANY EXECUTIVE SAID IN AN INTERVIEW BRUCE D TOBECKSEN VICE PRESIDENT OF FINANCE FOR THE WASTE HANDLING COMPANY SAID THAT THUS FAR IN 1994 WMX HASN'T REPURCHASED FOR CASH ANY OF ITS SHARES LAST YEAR THE COMPANY BOUGHT BACK 84 MILLION SHARES OF ITS STOCK AND 33 MILLION SHARES OF ITS MAJORITYOWNED CHEMICAL WASTE MANAGEMENT INC UNIT SPENDING MORE THAN 300 MILLION DESPITE THAT SUPPORT BOTH STOCKS FELL SHARPLY DURING THE YEAR AS INVESTORS RETREATED FROM THE ENVIRONMENTAL SERVICES SECTOR HUGE DISPOSAL CAPACITY PRICE CUTTING AND OTHER COMPETITIVE PRESSURES ARE SQUEEZING PROFITS IN THE INDUSTRY THE HALT IN BUYBACKS CAME AS STANDARD & POOR'S CORP LAST FALL DOWNGRADED WMX'S 5 BILLION OF DEBT AND THE COMPANY SAID IT WOULD TRIM CAPITAL SPENDING AND OTHERWISE LIMIT CASH OUTLAYS DURING 1994 HOWEVER WMX UNDER ITS PREVIOUSLY AUTHORIZED BUYBACK PROGRAM HAS SOLD PUT OPTIONS COVERING 43 MILLION OF ITS SHARES THE OPTIONS MATURE IN NOVEMBER OF THIS YEAR AND GIVE THE HOLDERS THE RIGHT TO REQUIRE WMX TO BUY SHARES AT PRICES RANGING FROM 24375 TO 24841 MR TOBECKSEN SAID THE PUTS WERE SOLD THROUGH SEVERAL DEALERS TO INSTITUTIONAL HOLDERS OF WMX SHARES THAT FELT SOME RISK EITHER SPECIFIC TO THE STOCK OR ABOUT THE STOCK MARKET MORE BROADLY THAT MADE THEM WILLING TO PAY A FEE TO LIMIT THEIR DOWNSIDE HE WOULDN'T IDENTIFY ANY BUYERS IN THEORY AT LEAST THE MOVE BY THE COMPANY HELPS SUPPORT ITS STOCK PRICE WE COULD CLEARLY DO MORE OF THESE WE MAY HE SAID IT'S PART OF THE STOCK REPURCHASE STRATEGY 9404110029 940411 MARGARETTEN FINANCIAL CORP PERTH AMBOY NJ MARGARETTEN FINANCIAL CORP SAID MARCH LOAN PRODUCTION TOTALED 12 BILLION ALMOST DOUBLE THE YEAREARLIER 619 MILLION THE LATEST FIGURE INCLUDED 489 MILLION IN RETAIL RESIDENTIAL MORTGAGES 39 OF THEM REFINANCINGS 159 MILLION OF WHOLESALE MORTGAGES AND 528 MILLION OF CORRESPONDENT TRANSACTIONS AT MARCH 31 MARGARETTEN'S MORTGAGE SERVICING PORTFOLIO TOTALED 158 BILLION UP FROM 147 BILLION A YEAR EARLIER 9404110028 940411 BRITISH CAR REGISTRATIONS RISE LONDON NEWCAR REGISTRATIONS IN BRITAIN ROSE 148 IN MARCH ACCORDING TO THE LATEST FIGURES FROM THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS THIS COMPARES WITH A SIMILAR 148 RISE IN FEBRUARY AND A 127 INCREASE IN MARCH 1993 THE SOCIETY REPORTED THAT NEW REGISTRATIONS IN THE FIRST QUARTER OF THIS YEAR TOTALED 529436 UP 168 FROM THE 453261 REGISTERED IN THE FIRST QUARTER OF 1993 9404110027 940411 CHASE MANHATTAN COMMITMENT NEW YORK CHASE MANHATTAN CORP SAID IT MADE A 500000 EQUITY COMMITMENT IN NEW YORK NATIONAL BANK A MINORITYOWNED COMMERCIAL BANK IN THE SOUTH BRONX CHASE WHICH WILL MAKE SEVERAL EQUITY PURCHASES OVER FOUR YEARS BOUGHT 125000 IN NEWLY ISSUED PREFERRED STOCK LAST WEEK THE CHASE PURCHASES WILL INCREASE NEW YORK NATIONAL'S EQUITY CAPITAL BY 143 NEW YORK NATIONAL BANK WITH ASSETS OF 60 MILLION OPERATES THREE BRANCHES IN THE SOUTH BRONX AND EAST HARLEM 9404110026 940411 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 HUNTSMAN CORP 575 MILLION OF 10YEAR FIRST MORTGAGE NOTES VIA BT SECURITIES CORP MEDAREX INC 25 MILLION SHARES VIA KEMPER SECURITIES AND JOSEPHTHAL LYON & ROSS INC MILLS CORP INITIAL 141 MILLION SHARES VIA MERRILL LYNCH & CO NATIONAL MATERIAL CORP INITIAL 55 MILLION SHARES VIA GOLDMAN SACHS & CO PALMER WIRELESS INC INITIAL 5 MILLION SHARES VIA SMITH BARNEY SHEARSON INC PETROLEUM GEOSERVICES AS ADR 52 MILLION AMERICAN DEPOSITARY SHARES VIA LEHMAN BROTHERS AND PAINEWEBBER INC THRIFTY PAYLESS INC 600 MILLION OF TWOPART DEBT OFFERING VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP TRANS OCEAN CONTAINER CORP 75 MILLION OF SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH VIKING STAR SHIPPING INC 135 MILLION SHARES VIA MORGAN STANLEY & CO XCELLENET INC INITIAL 2 MILLION SHARES VIA ALEX BROWN & SONS INC AND ROBERTSON STEPHENS & CO KING COUNTY WASH 170 MILLION OF IMPROVEMENT BONDS 1994 SERIES A VIA COMPETITIVE BID CHARLOTTE NC 162 MILLION OF 1994 IMPROVEMENT BONDS VIA COMPETITIVE BID VIRGINIA HOUSING DEVELOPMENT AUTHORITY 108 MILLION OF REVENUE BONDS VIA COMPETITIVE BID ATLANTA 250 MILLION OF AIRPORTFACILITIES REVENUE BONDS VIA MERRILL LYNCH AND ARTEMIS CAPITAL GROUP INC CALIFORNIA HOUSING FINANCE AGENCY 227 MILLION OF REVENUE BONDS VIA A LEHMAN BROTHERS GROUP CHICAGO 80 MILLION OF SERIES 1994A REVENUE BONDS FOR MIDWAY AIRPORT VIA A SMITH BARNEY SHEARSON GROUP DETROIT AIRPORT 80 MILLION OF REVENUE BONDS VIA A LEHMAN BROTHERS GROUP HARRIS COUNTY TEXAS 1995 MILLION OF REVENUE BONDS VIA A DILLON READ & CO GROUP ILLINOIS HEALTH FACILITIES AUTHORITY 75 MILLION OF REVENUE BONDS VIA A LEHMAN BROTHERS GROUP NEW YORK TRIBOROUGH BRIDGE & TUNNEL AUTHORITY 200 MILLION OF SERIES 1994 SPECIALOBLIGATION VARIABLERATE DEMAND BONDS VIA A DILLON READ GROUP SEMINOLE COUNTY FLA 82 MILLION OF SCHOOL DISTRICT CERTIFICATES OF PARTICIPATION VIA A BEAR STEARNS & CO GROUP 9404110025 940411 ADVANCED SURGICAL TO BUY FIRM PRINCETON NJ ADVANCED SURGICAL INC SAID IT AGREED TO ACQUIRE LAPAROMED CORP IRVINE CALIF IN A STOCK TRANSACTION VALUED AT 10 MILLION TO 12 MILLION BOTH COMPANIES DEVELOP PRODUCTS FOR MINIMALLY INVASIVE SURGERY 9404110024 940411 MILES GETS CHEMDESIGN SHARES PITTSBURGH MILES INC SAID IT RECEIVED 92 OR 84 MILLION SHARES OF CHEMDESIGN CORP'S COMMON STOCK OUTSTANDING IN A TENDER OFFER THAT EXPIRED ON THURSDAY MILES HAD OFFERED 850 A SHARE CHEMDESIGN A FITCHBURG MASS CHEMICAL MAKER STILL MUST HOLD A STOCKHOLDERS MEETING TO APPROVE THE MERGER ALTHOUGH MILES SAID ITS STAKE ASSURES APPROVAL OF THE PLAN MILES A CHEMICAL HEALTH CARE AND IMAGING TECHNOLOGY CONCERN IS A UNIT OF BAYER AG OF GERMANY 9404110023 940411 CITIZENS BANCSHARES ACQUISITION SALINEVILLE OHIO CITIZENS BANCSHARES INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE UNITY BANCORP INC IN A STOCK SWAP VALUED AT ABOUT 5 MILLION OR 3750 A SHARE UNDER THE AGREEMENT CITIZENS WILL ISSUE 121 SHARES OF ITS COMMON STOCK FOR EACH SHARE OF UNITY BASED IN NEW WATERFORD OHIO THE FINAL EXCHANGE RATE COULD BE ADJUSTED BASED ON CITIZENS' STOCK PRICE BEFORE CLOSING WHICH THE COMPANIES EXPECT WILL HAPPEN LATE THIS YEAR ON THE NASDAQ STOCK MARKET FRIDAY CITIZENS' SHARES ROSE 75 CENTS TO 29 CITIZENS HAS ABOUT 649 MILLION IN ASSETS UNITY HAS ABOUT 70 MILLION 9404110022 940411 SANTA FE ENERGY SELLS PROPERTIES HOUSTON SANTA FE ENERGY RESOURCES INC COMPLETED THE SALE OF CERTAIN OIL AND GAS PROPERTIES IN TEXAS OKLAHOMA AND THE ROCKY MOUNTAIN STATES TO BRIDGE OIL USA INC A UNIT OF BRIDGE OIL LTD OF AUSTRALIA SANTA FE SAID BRIDGE PAID ABOUT 40 MILLION REFLECTING THE EFFECT OF CLOSING ADJUSTMENTS ON THE 51 MILLION PRICE REPORTED IN DECEMBER BRIDGE OIL USA INC A UNIT OF BRIDGE OIL LTD OF AUSTRALIA PAID SANTA FE ENERGY RESOURCES INC 48 MILLION FOR CERTAIN OIL AND NATURAL GAS PROPERTIES IN TEXAS OKLAHOMA AND THE ROCKY MOUNTAIN STATES AN ARTICLE MONDAY INCORRECTLY STATED THE SALE PRICE AS 40 MILLION 9404110021 940411 MAJOR AIRLINES LIKELY TO POST NARROWER LOSSES FIRSTQUARTER IMPROVEMENT SEEN DESPITE WEATHER CALIFORNIA EARTHQUAKE BY DEAN ORSER SPECIAL TO THE WALL STREET JOURNAL NEW YORK MAJOR US AIRLINES ARE EXPECTED TO REPORT NARROWED LOSSES FOR THE FIRST QUARTER DESPITE EARLY SETBACKS RELATED TO SEVERE WINTER WEATHER AND THE CALIFORNIA EARTHQUAKE ANALYSTS PREDICT AN OPERATING LOSS OF 100 MILLION TO 150 MILLION FOR THE INDUSTRY COMPARED WITH A 325 MILLION LOSS IN THE FIRST QUARTER OF 1993 BUT YIELDS THE AVERAGE REVENUE A CARRIER RECEIVES FOR FLYING EACH PASSENGER A MILE ARE EXPECTED TO BE DOWN 4 AS STEEPERTHANEXPECTED DISCOUNTS TAKE A BITE OUT OF REVENUES ACCORDING TO HELANE BECKER AIRLINE ANALYST FOR LEHMAN BROTHERS ANALYSTS SAID LEANER OPERATIONS ROBUST MARCH TRAFFIC AND LOW FUEL COSTS HELPED MITIGATE LOSSES FOR MOST AIRLINES IN WHAT IS TRADITIONALLY THE INDUSTRY'S WEAKEST QUARTER AN EXCEPTION USAIR GROUP INC WHOSE LOSSES ARE EXPECTED TO SWELL REFLECTING A TOUGH EAST COAST FARE WAR AGAINST CONTINENTAL AIRLINES INC SOME ANALYSTS ALSO SEE CONTINENTAL'S LOSSES EXCEEDING THOSE OF LAST YEAR'S FIRST QUARTER MORGAN STANLEY ANALYST KEVIN C MURPHY FOR EXAMPLE ESTIMATED THAT USAIR WILL POST A LOSS OF 4 A SHARE IN THE LATEST QUARTER COMPARED WITH 165 IN THE FIRST QUARTER OF 1993 MS BECKER PUT THE LOSS AT 410 A SHARE MR MURPHY EXPECTS CONTINENTAL TO REPORT A LOSS OF 3 A SHARE FOR THE QUARTER COMPARED WITH 236 A SHARE IN 1993 ANALYSTS SEE INDUSTRYWIDE TRAFFIC GROWTH OF BETWEEN 23 AND 4 DEPENDING ON FINAL TALLIES FOR MARCH A RECENT AIRLINE UPDATE FROM SALOMON BROTHERS PREDICTED THAT DOMESTIC TRAFFIC ALONE WOULD RISE MORE THAN 8 IN MARCH KIDDER PEABODY & CO ANALYST SAMUEL BUTTRICK SAID THE FIRSTQUARTER SHOWING PORTENDS A SECOND YEAR OF CYCLICAL RECOVERY AFTER THREE YEARS OF RECESSION AND FARE WARS HE SEES MOST AIRLINES POSTING LOSSES EQUAL TO OR SMALLER THAN THOSE IN LAST YEAR'S FIRST QUARTER CREDITING LOW FUEL PRICES HE OFFERED A CRUDE GUESS THAT AIRLINES SAVED ABOUT 200 MILLION ON FUEL EXPENSES IN THE QUARTER THEY STILL STAND A FIGHTING CHANCE OF BEING PROFITABLE FOR 1994 MORGAN STANLEY'S MR MURPHY SAID THE LOSSES HAVE DECLINED AND HOPEFULLY THAT BODES WELL FOR A SEASONABLY STRONG SUMMER DAVID A SWIERENGA CHIEF ECONOMIST FOR THE AIR TRANSPORT ASSOCIATION AND ADMITTEDLY A PESSIMIST SAID HE THINKS THE INDUSTRY'S QUARTERLY OPERATING LOSS WILL SURPASS LAST YEAR'S HE REASONED THAT AIRLINES ARE CUTTING SERVICES FLYING FEWER PLANES FOR EXAMPLE TO REDUCE EXPENSES AND OFFERING DISCOUNTS TO ATTRACT PASSENGERS WHILE COSTS SPECIFICALLY LABOR COSTS ARE GOING UP IT SEEMS TO BE HARD TO MAKE A CASE FOR PROFIT WHEN REVENUES ARE DECLINING AND COSTS ARE RISING MR SWIERENGA SAID NONETHELESS HE SAID HE SHARES WALL STREET'S OPTIMISM THE INDUSTRY WILL POST A NET PROFIT OF ABOUT 1 BILLION IN 1994 9404110020 940411 GROWING PAINS ITS ACQUISITION BINGE HAS LOADED BANC ONE WITH MAZE OF BRANCHES COMPANY ALSO HAS TRAILED SOME RIVALS IN ADDING NEW CUSTOMER SERVICES NOW A DRIVE TO CUT COSTS BY GABRIELLA STERN AND CLARE ANSBERRY STAFF REPORTERS OF THE WALL STREET JOURNAL JOHN B MCCOY'S PAST IS CATCHING UP WITH HIM THE THIRDGENERATION BANKER HAS SPENT THE PAST DECADE LEADING BANC ONE CORP'S AUTOBAHNPACED ACQUISITION DRIVE BUYING UP 112 BANKS QUINTUPLING EMPLOYMENT AND MAKING BANC ONE ONE OF THE NATION'S MOST PROFITABLE INSTITUTIONS HIS BOLD MARCH FROM COLUMBUS OHIO TO TEXAS AND ARIZONA WOWED INVESTORS AND THRUST HIM INTO A NATIONAL SPOTLIGHT THE HOMEY EXECUTIVE SOCIALIZES WITH LEVERAGEDBUYOUT SPECIALIST HENRY KRAVIS AND HAS A PHOTO OF HIMSELF WITH GEORGE BUSH AT A GOLF TOURNAMENT HIS ABILITY TO TURN OUT A STEADY STREAM OF PROFIT RECORDS EARNED THE GRUDGING RESPECT OF COMPETITORS WHO SOUGHT OUT HIS ADVICE ON ACQUISITIONS NOW HOWEVER HE COULD USE THEIR ADVICE BANC ONE IN THE VIEW OF SOME ANALYSTS HAS SIMPLY GROWN TOO BIG TOO FAST PURSUING SIZE RATHER THAN EFFICIENCY MR MCCOY KEPT ADDING OPERATIONS WITHOUT ELIMINATING REDUNDANCIES OR MARGINAL BUSINESSES THE RESULT A SPRAWLING NETWORK OF 1333 HIGHOVERHEAD BRANCHES NOT MANY FEWER THAN NATIONSBANK OF CHARLOTTE NC WHICH IS TWICE ITS SIZE AND 81 BANKS EACH WITH ITS OWN BOARD OF DIRECTORS AND CHIEF EXECUTIVE OFFICER MOREOVER NATIONAL STATUS BECAME SO ALLCONSUMING THAT THE EXECUTIVE WHO SEEMED TO WALK ON WATER OVERLOOKED A SEA CHANGE IN BANKING BANC ONE RELIED ON ACQUISITIONS FOR AS MUCH AS TWO TO THREE PERCENTAGE POINTS OF ITS 134 COMPOUNDED ANNUAL EARNINGS GROWTH OVER 25 YEARS MEANWHILE SOME COMPETITORS ENTERED OTHER INVESTMENTRELATED BUSINESSES PREPARING TO BATTLE MUTUALFUND COMPANIES THAT HAVE ALMOST EVERYTHING BANKS HAVE AND MORE MR MCCOY CONCEDES THAT BANC ONE HAS TO DO A BETTER JOB OF SELLING SERVICES SUCH AS INSURANCE PERSONAL TRUST SERVICES AND PENSION MANAGEMENT WE REALLY WANT TO BE A ONESTOP SHOPPING CENTER THE 50YEAROLD CHAIRMAN SAYS WE NEED TO CHANGE HOW WE TAKE CARE OF THE RETAIL CUSTOMER THAT'S A TOUGH ADMISSION FOR A BANKER WHOSE CODDLING OF RETAIL CUSTOMERS HELPED PRODUCE A STRING OF 25 YEARS OF RECORD EARNINGS IN 1993 WHEN BANC ONE ACQUIRED BIG BANKS IN ARIZONA AND WEST VIRGINIA NET INCOME SURGED 30 TO 114 BILLION OR 298 A SHARE MR MCCOY SAYS SUCH EARNINGS GROWTH OUGHT TO QUIET SKEPTICS AND HE NOTES THAT THE MANY BRANCHES THOUGH THEY NEED TO OFFER MORE SERVICES ARE A WAY TO REACH A BROAD RETAILCUSTOMER BASE THAT FEW OTHER BANKS HAVE INCLUDING NATIONSBANK WE HAVE A STRATEGY AND DIRECTION THAT HAS WORKED FOR US HE DECLARES YET SOME INVESTORS CONSIDER THE STOCK JUST AVERAGE I'M LOOKING AT INVESTMENTS THAT WILL GIVE ME SUBSTANTIAL RETURNS IN 12 TO 18 MONTHS BANC ONE IS NOT POSITIONED THERE RIGHT NOW SAYS TOM MARSICO VICE PRESIDENT OF JANUS CAPITAL CORP A MUTUALFUND COMPANY THAT WAS ONCE A MAJOR BANC ONE SHAREHOLDER BUT HAS ELIMINATED ITS STAKE WITH SUCH DEFECTIONS BANC ONE STOCK HAS FARED RELATIVELY POORLY IT HAS DROPPED 21 IN THE PAST 12 MONTHS COMPARED WITH A 7 SLIDE AT MAJOR REGIONAL BANKS THAT SLIPPAGE HAS UNDERMINED ITS ABILITY TO BUY OTHER BANKS WITH STOCK EARLIER THIS YEAR FIRSTIER FINANCIAL INC IN OMAHA NEB WAS SO CLOSE TO JOINING THE BANC ONE FAMILY THAT IT DOWNLOADED ITS FINANCIAL RECORDS INTO BANC ONE COMPUTERS AND WAS CONSIDERING WHETHER TO HOLD THE POSTMERGER CELEBRATION AT A LOCAL RACETRACK OR HOTEL THEN THE UNTHINKABLE HAPPENED BANC ONE'S HIGHFLYING STOCK FELL NERVOUS FIRSTIER EXECUTIVES DEMANDED A HIGHER PRICE AND SQUABBLED OVER GOLDEN PARACHUTES THE DEAL CRUMBLED IN FEBRUARY MR MCCOY SAYS HE DESERVES A PAT ON THE BACK FOR LETTING THE DEAL GO BUT ALTHOUGH BANC ONE MAY HAVE BEEN PRUDENT IN NOT UPPING ITS ANTE THE COLLAPSE OF THE DEAL SIGNALS THE COMPANY'S DIMINISHING BUYING POWER THAT IN TURN RAISES DOUBT ABOUT MR MCCOY'S ABILITY TO CONTINUE POSTING 13AYEAR EARNINGS GROWTH AS THE BANK HAS SAID IT CAN DO TO MAKE MATTERS WORSE BANC ONE DISCLOSED THAT IT HAD 36 BILLION IN CONTRACTS FOR DERIVATIVES THOSE OFFBALANCESHEET INVESTMENTS ESSENTIALLY CONTRACTS WHOSE VALUE IS DERIVED FROM THE WORTH OF SOME UNDERLYING ASSET SHOWED HOW HEAVILY ITS STELLAR PERFORMANCE DEPENDED ON SOMETHING OTHER THAN BANKING THE DERIVATIVES INCREASED ITS EARNINGS WHEN INTEREST RATES WERE FALLING BUT NOW WITH RATES HIGHER BANC ONE ACKNOWLEDGES THAT DERIVATIVES PROBABLY WON'T BE AS PROFITABLE THE CLOUD HANGING OVER BANC ONE COULDN'T COME AT A WORSE TIME SAYS JOHN FISHER A FORMER SENIOR VICE PRESIDENT WE'RE ON THE THRESHOLD OF NATIONAL BANKING SAYS MR FISHER WHO JOINED THE BANK IN 1960 WHEN IT WAS THE 800THLARGEST IN THE US AND RETIRED FOUR YEARS AGO WHEN IT WAS EIGHTH IF THERE WAS EVER A TIME BANC ONE NEEDED A STRONG STOCK PRICE AND AGGRESSIVE ACQUISITION EFFORTS IT'S RIGHT NOW EVEN MR MCCOY'S FATHER A FORMER BANC ONE CHAIRMAN AND STILL A DIRECTOR ISN'T ENTIRELY PLEASED JOHN G MCCOY WHO THREATENED TO SEND HIS SON TO TYPING SCHOOL BECAUSE HE WASN'T DISTINGUISHING HIMSELF IN COLLEGE GIVES HIM AN A+ SINCE HE TOOK OVER IN 1984 BUT HE DROPS THAT TO AN A FOR THE PAST YEAR WELL WE'VE INCREASED EARNINGS THE FATHER SAYS BUT I'M TAKING THE PLUS OFF BECAUSE THE STOCK DROPPED THE YOUNGER MR MCCOY SAYS THAT ALTHOUGH PEOPLE ASK HIM HOW ARE YOU SLEEPING AT NIGHT HE ISN'T TOSSING OR TURNING YET THE EVERCOMPETITIVE EXECUTIVE HAS BECOME UNCHARACTERISTICALLY DEFENSIVE WHEN A RIVAL BANKING COMPANY SOCIETY CORP IN CLEVELAND MERGED WITH KEYCORP NOW ALSO CLEVELANDBASED CREATING A TOUGHER COMPETITOR HE OPENLY CRITICIZED THE DEAL SAYING A MERGER OF EQUALSIZE BANKS DIDN'T MAKE SENSE TO SHAREHOLDERS HIS STRATEGY HAS ALWAYS BEEN TO GOBBLE UP SMALLER BANKS ACROSS THE COUNTRY A STRATEGY THAT MR MCCOY APPROACHED THE SAME WAY HE SKIS WHEN VISITING THE FAMILY'S GETAWAY IN DEER VALLEY UTAH HURTLING STRAIGHT DOWN IGNORING PLEAS FROM FAMILY AND FRIENDS TO TAKE IT EASY WHILE COMPETITORS WERE BLIGHTED BY SOURED REALESTATE OIL AND FOREIGN LOANS BANC ONE BRANCHES SPREAD LIKE DANDELIONS THROUGH THE HIGHINTEREST 1980S AND SOAKED UP CONSUMER DEPOSITS IT WAS A CHEAP SMART WAY TO RAISE LENDABLE FUNDS ASSETS BLOSSOMED TO 80 BILLION IN ADDITION BANC ONE WAS A LEADER IN CONSUMER CREDIT CARDS IT PLOWED MUCH OF THE REVENUE FROM THAT BUSINESS BACK INTO ACQUISITIONS INSTEAD OF DEVELOPING NEW USES FOR THE CREDITCARD PROCESSING TECHNOLOGY THAT TECHNOLOGY COULD BE TURNED TO PROCESSING MEDICAL CLAIMS AND INSURANCE FORMS RECENTLY BANC ONE ACQUIRED CROGHAN & ASSOCIATES OF BOULDER COLO A SMALL PROCESSING COMPANY THAT HAS DEVELOPED SOFTWARE TO ELECTRONICALLY COMPLETE PAYMENTS BETWEEN PATIENTS PROVIDERS AND INSURANCE COMPANIES YET BANC ONE REMAINED THE FOLKSY COMMUNITY BANK PLASTERING ITS NAME ON BASKETBALL BACKBOARDS OF HIGHSCHOOL GYMS IN SMALL OHIO TOWNS AND CULTIVATING CUSTOMERS NEGLECTED BY OTHERS KEVIN MCHUGH A SOLO CONSULTANT IN CHAGRIN FALLS OHIO SAYS BANKS WITH A BIGGER LOCAL PRESENCE IGNORED HIM BUT A BANC ONE REPRESENTATIVE SAID WE WANT YOUR BUSINESS AND CREATED A SPECIAL LOAN ARRANGEMENT TO FINANCE HIS STARTUP BUT WHILE MR MCCOY GENERALLY RETAINS THE RETAIL FOCUS OF HIS FATHER AND GRANDFATHER THE INDUSTRY IS CHANGING BRANCHES ARE RAPIDLY BECOMING LESS PROFITABLE AND EVEN OUTDATED AS CONSUMERS GET MONEY FROM MACHINES FINANCE MORE CARS THROUGH AUTO MAKERS AND INCREASINGLY DEPOSIT MONEY ELSEWHERE TOTAL HOUSEHOLD ASSETS HELD BY BANKS PEAKED BY 1980 NOW INVESTMENTS IN BRANCHES PEOPLE AND COMPUTER TERMINALS AREN'T AS VIABLE UNLESS THEY OFFER A WIDE VARIETY OF SERVICES MEANWHILE HIS COMPETITORS HAVE RECOVERED FROM MOST OF THEIR BAD LOANS AND PLUNGED INTO LESSTRADITIONAL INVESTMENTMANAGEMENT BUSINESSES SUCH AS PROCESSING GOVERNMENT SECURITIES THE REASON FINANCIALSERVICE COMPANIES SUCH AS MERRILL LYNCH & CO ARE CHANGING THE WAY CONSUMERS HANDLE THEIR MONEY AWAY FROM CERTIFICATES OF DEPOSIT AND SAVINGS ACCOUNTS AND INTO MUTUAL FUNDS MELLON BANK CORP OF PITTSBURGH A REGIONAL RIVAL BOUGHT BOSTON CO AND DREYFUS CORP LAST YEAR WHILE NATIONSBANK LINKED UP WITH DEAN WITTER DISCOVER & CO OF NEW YORK TO OFFER MORE INVESTMENT SERVICES MR MCCOY'S POSITION YOU CAN ONLY DO SO MANY THINGS I WOULD SAY WE HAVE FOCUSED MORE ON THE RETAIL LENDING SIDE OF THE BUSINESS BE IT CREDITCARD SECONDMORTGAGE OR ELECTRONIC TAX PAYMENTS WE HAVE OVER THE LAST THREE YEARS STARTED TO PUT MORE AND MORE EFFORT INTO INVESTOR SERVICES WHY DIDN'T WE DO IT 10 YEARS AGO IT'S A MATTER OF PRIORITIES WHAT YOU'RE DOING WHEN BANC ONE FOCUSED ON TRADITIONAL BANKING UNTIL IT RECOGNIZED THE SHIFT IN CONSUMER INVESTING PRACTICES AT THE SAME TIME INTEREST RATES WERE FALLING MAKING ROUTINE LOANS LESS PROFITABLE ONLY THEN DID IT BEGIN INSTALLING SMALL PERSONALINVESTMENT CENTERS IN ITS BRANCHES MOREOVER IT PREFERS TO TRAIN ITS OWN PEOPLE AND PUT ITS OWN SERVICES IN BRANCHES RATHER THAN GETTING MUTUALFUND OR INSURANCE COMPANIES TO SET UP SALES KIOSKS BANC ONE'S FEELING IS CUSTOMER SATISFACTION WILL BE GREATER IF WE LEARN TO DO THIS OURSELVES MR FISHER SAYS HOWEVER DAVID A RISMILLER FIRSTIER FINANCIAL'S CHIEF EXECUTIVE COMMENTS THE DOWNSIDE IS IT'S SLOW THAT IS ESPECIALLY TROUBLESOME GIVEN BANC ONE'S HIGH COSTS BANC ONE SAYS ITS COSTS ARE DECLINING AND ONLY THE NEWEST BANKS SUCH AS THOSE IN COLORADO KENTUCKY AND WEST VIRGINIA DON'T HAVE RESPECTABLE EFFICIENCY RATIOS WHICH MEASURE NONINTEREST EXPENSES AS A PERCENTAGE OF NET INTEREST AND OTHER INCOME HIGH COSTS WOULD BE HERESY AT THE BANC ONE OF YORE WHEN THE CORPORATE STAFF TOTALED ABOUT SEVEN PEOPLE SALVAGED STRAY PAPER CLIPS AND MADE EVERY SALARY DECISION WHEN MESSRS MCCOY AND FISHER FLEW FIRST CLASS AFTER A LONG BUSINESS TRIP TO CALIFORNIA THEY REIMBURSED THE COMPANY BY THE LATE 1980S HEADQUARTERS HAD ADOPTED MORE LAYERS TO MANAGE ITS FARFLUNG OPERATIONS AND SHIFTED SALARY DECISIONS TO THEM BUT BANC ONE STILL PRIDED ITSELF ON ITS RELATIVELY SPARTAN CULTURE AND EXPECTED NEW UNITS TO FOLLOW SUIT THAT WAS A TOUGH SELL IN TEXAS WHERE BANC ONE BOUGHT FAILED MCORP IN 1990 EVERYTHING ABOUT TEXAS SEEMED BIGGER AND FLASHIER THAN THE FOLKS IN COLUMBUS WERE USED TO TREASURER GEORGE MEILING CITES MCORP'S TWO CHEFS THE FRENCH CHEF EARNED 80000 THE TEXMEX CHEF 65000 AFTER RETURNING FROM A BOARD MEETING IN FEBRUARY 1990 A MONTH AFTER BANC ONE TOOK OVER MR MCCOY STOMPED INTO MR MEILING'S OFFICE DO YOU KNOW ABOUT THE CHEFS MR MCCOY ROARED THEY ARE GONE SO ARE SOME EXECUTIVES BUT EVEN AS BANC ONE OFFICIALS CUT EXPENSES COSTS BALLOONED BANC ONE INSISTED ON CHANGING THE ENTIRE TEXAS ORGANIZATION MCORP HAD RELATIVELY FEW BRANCHES 15 IN THE DALLASFORT WORTH AREA WHICH IS THREE TIMES THE SIZE OF COLUMBUS WHERE BANC ONE HAD 45 BRANCHES BANC ONE OPENED MORE THAN 100 NEW TEXAS BRANCHES IT ALSO CREATED FIVE REGIONAL MANAGEMENT CENTERS AND TODAY THE TEXAS UNIT HAS 24 SEPARATE BANK PRESIDENTS 24 BOARDS AND 24 ADMINISTRATIVE STAFFS I WONDER IF THOSE GUYS ARE BUILDING SUCH LAYERS OF MANAGEMENT THAT EVENTUALLY THEY'LL EITHER BECOME LETHARGIC OR EXPENSIVE MR FISHER SAYS THAT CHANGES THE UNCOMMON PARTNERSHIP THE UNCOMMON PARTNERSHIP A TERM COINED BY MR FISHER IN 1968 AND THE BANC ONE CREDO EVER SINCE IS ESSENTIALLY THIS LEAVE AFFILIATES AUTONOMOUS TO CUT COSTS SET SALARIES HIRE AND MARKET THE IDEA IS TO ENGENDER LOYALTY AND PRIDE IN LOCAL EMPLOYEES AND PRESERVE BANC ONE'S NICEGUY IMAGE FOR FUTURE MERGER CANDIDATES BUT IT IS NEARLY IMPOSSIBLE TO FORCE INDIVIDUAL FIEFS TO CONSOLIDATE OPERATIONS AND ELIMINATE REDUNDANCIES AND LOCAL MANAGERS DON'T WANT TO CUT THEIR OWN STAFF OR DEPARTMENTS IN COLORADO FOR EXAMPLE LOCAL EXECUTIVES WERE PREOCCUPIED WITH MOLLIFYING CUSTOMERS WHOSE BANK STATEMENTS WERE LATE OR INCORRECT DURING A BUMPY CHANGEOVER TO A BANC ONE DATAPROCESSING SYSTEM IN ADDITION THE UNIT LOST CUSTOMERS WHO DIDN'T LIKE BANC ONE'S LINEUP OF PRODUCTS INSIDERS SAY THE DISTRACTIONS KEPT EXECUTIVES FROM CONCENTRATING SUFFICIENTLY ON STREAMLINING SOME OF THE STATE'S HALFDOZEN BANKS AND QUICKLY CONSOLIDATING CHECK PROCESSING ACCOUNTING AND BOOKKEEPING MOREOVER BANC ONE STILL HASN'T CONSOLIDATED ITS DATAPROCESSING OPERATIONS ACROSS THE COUNTRY BY MOVING TO ONE INTEGRATED SOFTWARE SYSTEM WILLIAM T BOARDMAN BANC ONE'S MERGERMEISTER AND A SENIOR EXECUTIVE VICE PRESIDENT CONCEDES THERE ARE ADDITIONAL COSTSAVING OPPORTUNITIES BUT SAYS COSTS AT AFFILIATES ARE COMING DOWN PRETTY FAST MR MCCOY DEFENDS THE UNCOMMON PARTNERSHIP SAYING EVEN THOUGH COST CUTTING IS SLOWER IT STICKS BECAUSE LOCAL MANAGERS FEEL EMPOWERED NOT RESENTFUL AND MAKE SMART MOVES HE ADDS THAT BANC ONE EXPECTS TO CUT 150 MILLION IN EXPENSES THIS YEAR EARLIER THIS YEAR ITS TEXAS OPERATIONS ELIMINATED 100 JOBS IN THE FINANCIAL AREA TEXAS HAS GONE FROM 21 CHIEF FINANCIAL OFFICERS TO FIVE OR SIX HE NOTES THERE'S NOT A MARKET WE'RE IN WHERE WE'RE NOT IMPROVING THE EFFICIENCY RATIO HE SAYS LAST YEAR BANC ONE CONSOLIDATED 13 CREDITCARD CENTERS INTO FOUR I DON'T THINK WE'VE HAD TO CUT COSTS TO INCREASE EARNINGS IN THE PAST THE ELDER MR MCCOY SAYS NOW WE ARE CUTTING COSTS INDEED DIRECTORS SAY THE YOUNGER MR MCCOY NEEDS TO CONCENTRATE ON INTERNAL OPERATIONS THEY DID WHAT WAS IMPORTANT AT THAT TIME IN THEIR EXPANSION NOW THEY'RE GOING TO ATTACK THE EXPENSE SIDE OF IT SAYS ONE DIRECTOR ROBERT WALTER THAT UNDOUBTEDLY MEANS CONSOLIDATING SMALLER BANKS AND WINNOWING ITS HUGE BRANCH SYSTEM SOME STATES COULD LOSE AT LEAST 50 OF THEIR BANC ONE AFFILIATES INDEED THE COMPANY IS TELLING ANALYSTS IT'S ABOUT TO CONSOLIDATE ITS 16 BANKS IN WEST VIRGINIA THOUGH COMPARED TO SOME CORPORATE CUTBACKS IT DOESN'T ANTICIPATE DRACONIAN MEASURES WE'RE NOT DOING A FLEET SAYS MR BOARDMAN REFERRING TO MASSIVE COST CUTTING AT FLEET FINANCIAL GROUP INC MR MCCOY IS PHILOSOPHICAL ABOUT THE GROWING PAINS LIFE IS A LONG WINDING ROAD HE SAYS I'D LIKE TO DO EVERY DEAL AND MAKE 20 EARNINGS GROWTH A YEAR BUT YOU CAN'T DO THAT THE BIG DIFFERENCE NOW IS WE'RE A BIGGER GUY IT WAS ALWAYS NICE WHEN YOU WERE THE LITTLE GUY 9404110019 940411 GABELLI PLANS TO SKIP IPO IN LAUNCHING CLOSEDEND FUND OF MULTIMEDIA STOCKS BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK PICKER MARIO GABELLI IS COMING OUT WITH A PUBLICLY TRADED FUND WITHOUT UNDERWRITERS FINANCING THE DEAL OR BROKERS PITCHING THE PRODUCT THE GABELLI EQUITY TRUST INC A CLOSEDEND FUND WITH 937 MILLION IN ASSETS PLANS TO TRANSFER 10 OF ITS ASSETS IN CASH IN A SPINOFF TO THE COMING GABELLI MULTIMEDIA TRUST INC THE NEW FUND IS IN REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION SHAREHOLDERS IN EQUITY TRUST WOULD GET THE NEW FUNDS' COMMON SHARES AS A DIVIDEND RECEIVING ONE MULTIMEDIA TRUST SHARE FOR EVERY 10 SHARES THEY HAVE IN EQUITY TRUST THIS MEANS THEY WOULD PAY NO MONEY UPFRONT FOR THEIR NEW SHARES AND IF THEY DON'T WANT THE SHARES THEY CAN SELL THEM IN THE STOCK MARKET SAID COLIN MATHEWS AN ANALYST AT MORNINGSTAR CLOSEDEND FUNDS A CHICAGO NEWSLETTER EQUITY TRUST HAS 83 MILLION SHARES OUTSTANDING THE PLAN IS SUBJECT TO SHAREHOLDER APPROVAL MOST CLOSEDEND FUNDS WHICH UNLIKE OPENEND FUNDS ISSUE A FIXED NUMBER OF SHARES AND TRADE ON AN EXCHANGE ARE LAUNCHED THROUGH INITIAL OFFERINGS AN UNDERWRITER FINANCES THE DEAL AND BROKERS SELL THE SHARES AN EXISTING FUND CAN RAISE MONEY THROUGH A RIGHTS OFFERING IN WHICH CURRENT SHAREHOLDERS GET RIGHTS TO BUY ADDITIONAL STOCK AT A DISCOUNT WITHOUT BROKERAGE COMMISSIONS CLOSEDEND FUNDS USE THE OFFERINGS TO BOOST ASSETS AND MANAGEMENT FEES BUT SHAREHOLDERS ARE FORCED TO COME UP WITH MORE CASH IF THEY DON'T WANT THEIR CURRENT SHARES DILUTED MR GABELLI HAS USED RIGHTS OFFERINGS FOR EQUITY TRUST THE SPINOFF PLAN IS A WAY TO BRING OUT A NEW CLOSEDEND FUND WITHOUT A LOT OF HASSLE MR MATHEWS SAID GABELLI WOULD HAVE TO CUT A DEAL WITH AN UNDERWRITER TO DO THIS AS AN INITIAL OFFERING THIS IS A SHAREHOLDERFRIENDLY WAY TO OFFER A NEW FUND MR GABELLI SAID THE NEW FUND WOULD GO BACK TO OUR ROOTS IN ESTABLISHING A NICHE FUND TO INVEST IN MULTIMEDIA STOCKS BUT HE DECLINED TO DISCUSS THE FUND FURTHER SAYING IT STILL IS IN REGISTRATION MR GABELLI IS KNOWN FOR HIS INTEREST IN MULTIMEDIA STOCKS OF POTENTIAL LEADERS ON THE INFORMATION SUPERHIGHWAY MR MATHEWS SAID HE'S ALWAYS TALKING ABOUT THE INTERACTIVE COUCHPOTATO THEME IN FACT MR GABELLI HAS A FUND BY THAT NAME THERE'S THE GABELLI INTERACTIVE COUCH POTATO FUND THE GABELLI GLOBAL TELECOMMUNICATIONS FUND AND A FORTHCOMING GABELLI GLOBAL ENTERTAINMENT & MEDIA FUND ALL OF THOSE ARE OPENEND FUNDS UNLIKE EQUITY TRUST GABELLI FUNDS INC RYE NY RUNS MUTUAL FUNDS AND PRIVATE AND INSTITUTIONAL ACCOUNTS WITH ASSETS OF ABOUT 82 BILLION THE EQUITY TRUST FUND HAD ITS TOP HOLDINGS AT THE END OF THE YEAR IN SUCH STOCKS AS TIME WARNER INC SPRINT CORP VIACOM INC UNITED TELEVISION INC AND TELEPHONE & DATA SYSTEMS INC ACCORDING TO MORNINGSTAR BUT EQUITY TRUST IS A GOOD OLDFASHIONED GROWTHATAGOODPRICE PORTFOLIO THAT INCLUDES AMERICAN EXPRESS CO AND GENERAL MOTORS CORP MR MATHEWS SAID THE NEW FUND WILL HAVE TWOTHIRDS OF ITS INVESTMENTS IN WORLDWIDE MULTIMEDIA STOCKS MR MATHEWS SAID IT CAN DO WELL BECAUSE MR GABELLI DEFINES MULTIMEDIA BROADLY TO INCLUDE INFORMATION PROVIDERS UTILITIES PUBLISHERS AND SOFTWARE CABLE AND CELLUAR COMPANIES INTERNATIONALLY MR MATHEWS SAID BUT SUCH TECHNOLOGY STOCKS CAN BE VOLATILE MANY OPENEND FUNDS INVEST IN TELECOMMUNICATIONS STOCKS BUT THE ONLY OTHER CLOSEDEND FUND WITH A NICHE IN SUCH INVESTMENTS IS THE NEW AGE MEDIA FUND INC RUN BY T ROWE PRICE ASSOCIATES INC IN BALTIMORE THAT FUND WAS LAUNCHED IN OCTOBER AT 15 A SHARE AND CLOSED FRIDAY AT 10625 UP 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9404110018 940411 COMPUSA OPENS SUPERSTORES DALLAS COMPUSA INC SAID IT IS OPENING SUPERSTORES THIS MONTH IN NEW YORK CITY'S BOROUGH OF MANHATTAN AND IN FAIRLAWN OHIO GIVING THE COMPUTER RETAILER A TOTAL OF 74 OUTLETS 9404110017 940411 RYAN BECK EXTENDS TWO OFFERS WEST ORANGE NJ RYAN BECK & CO SAID IT EXTENDED UNTIL THURSDAY ITS OFFER TO EXCHANGE AS MANY AS 1250000 SHARES OF STOCK FOR CONVERTIBLE PREFERRED AND A SEPARATE OFFER TO PURCHASE UP TO 150000 COMMON SHARES AS OF LAST THURSDAY THE INVESTMENT BANKING FIRM SAID IT HAD RECEIVED TENDERS FOR ABOUT 559300 SHARES IN THE EXCHANGE OFFER AND FOR 140455 SHARES IN ITS OFFER TO BUY COMMON STOCK 9404110016 940411 FLOW TO FIGHT ANTITRUST SUIT KENT WASH FLOW INTERNATIONAL INC SAID IT WILL CHALLENGE A FEDERAL ANTITRUST LAWSUIT FILED LAST MONDAY IN US DISTRICT COURT IN DETROIT THAT SEEKS TO BLOCK ITS PROPOSED PURCHASE OF THE WATERJET CUTTING SYSTEMS DIVISION OF INGERSOLLRAND CO FLOW WHICH MAKES WATERJETS SAID IT REJECTS THE CLAIM BY THE JUSTICE DEPARTMENT THAT THE ACQUISITION WILL ELIMINATE COMPETITION IN THE WATERJET MARKET 9404110015 940411 PRATT & LAMBERT ANNUAL MEETING BUFFALO NY PRATT & LAMBERT INC CITING A PENDING ACQUISITION SAID IT WILL HOLD ITS ANNUAL MEETING IN AUGUST INSTEAD OF IN MAY WHEN IT'S NORMALLY HELD AMONG OTHER ISSUES SHAREHOLDERS WILL VOTE ON A DEFINITIVE MERGER AGREEMENT WITH UNITED COATINGS INC PRATT A PAINT COATINGS AND ADHESIVES MAKER SAID IT WILL SET THE DATE AND LOCATION FOR THE MEETING LATER 9404110014 940411 TECHNOLOGY FDA APPROVES INVACARE PLAN ELYRIA OHIO INVACARE CORP SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO BEGIN SELLING A NUMBER OF NEW POWER WHEELCHAIRS IN THE US THE WHEELCHAIRS INCLUDE THE COMPANY'S ACTION STORM SERIES WHICH FEATURES INDEPENDENT SUSPENSION 9404110013 940411 INTERNATIONAL ITALIAN COALITION'S ACCORD ASSUAGES NORTHERN LEAGUE SPECIAL TO THE WALL STREET JOURNAL ROME ITALY'S POSTELECTION TURMOIL WAS EASED FURTHER WITH AN ACCORD THAT CAST A BLUEPRINT FOR GOVERNMENT REFORMS THAT INCLUDE SHIFTING SOME POWERS FROM THE CAPITAL TO THE REGIONS THE PACT BETWEEN TWO MEMBERS OF THE ELECTIONWINNING COALITION THE NORTHERN LEAGUE AND THE NATIONAL ALLIANCE COULD CLEAR THE WAY FOR MEDIA MAGNATE SILVIO BERLUSCONI TO BECOME PREMIER THE NORTHERN LEAGUE'S LEADER UMBERTO BOSSI HAS SAID RECENTLY HE MAY ACCEPT MR BERLUSCONI AS PREMIER IF THE NEW GOVERNMENT STRIVES TO DECENTRALIZE GOVERNMENT POWER THE MAIN OBJECTIVE OF THE NORTHERN LEAGUE THE ACCORD REACHED FRIDAY ENDORSES REWRITING THE CONSTITUTION TO GIVE MORE POWER TO REGIONAL ASSEMBLIES AND POSSIBLY ALLOWING DIRECT ELECTION OF THE PREMIER THE CHANGES WOULD HAVE TO BE APPROVED IN A NATIONWIDE REFERENDUM MR BOSSI MET FRIDAY WITH PRESIDENT OSCAR LUIGI SCALFARO WHO MUST CONFIRM THE SELECTION OF A NEW PREMIER MR SCALFARO HAS SAID HE WOULD LIKE TO HAVE A PREMIER IN PLACE BEFORE THE NEW PARLIAMENT CONVENES APRIL 15 MR BERLUSCONI'S FORZA ITALIA BROUGHT TOGETHER THE NORTHERN LEAGUE AND THE FARRIGHT NATIONAL ALLIANCE UNDER A COALITION THAT DOMINATED PARLIAMENTARY ELECTIONS MARCH 2728 THE NATIONAL ALLIANCE WHICH GREW OUT OF A NEOFASCIST MOVEMENT FAVORED MR BERLUSCONI AS PREMIER BUT MR BOSSI SAID MR BERLUSCONI'S TV AND PRINT HOLDINGS MAKE HIM UNFIT FOR THE POST 9404110012 940411 ABREAST OF THE MARKET AFTER TWO MONTHS OF STOCK DECLINES MANY ANALYSTS SAY CORRECTION IS OVER BY STEVEN E LEVINGSTON AND JOHN R DORFMAN STAFF REPORTERS OF THE WALL STREET JOURNAL THERE NOW THAT WASN'T SO BAD IF IT'S REALLY OVER AFTER A LITTLE MORE THAN TWO MONTHS OF NERVEWRACKING DECLINES MANY ANALYSTS ARE BIDDING A NONETOOFOND FAREWELL TO THE STOCK MARKET CORRECTION THEY CONTEND THAT STOCK PRICES HIT BOTTOM LAST MONDAY WHEN THE DOW JONES INDUSTRIAL AVERAGE CLOSED AT 359335 SURE THE INDUSTRIAL AVERAGE FELL 1900 FRIDAY TO CLOSE AT 367426 BUT FOR THE WEEK THE AVERAGE WAS UP 3830 OR 11 THE HOPEFUL CONSENSUS IS THAT THE DAMAGE IS OVER FOR NOW WHILE FEW ANALYSTS ARE LOOKING FOR A RIPROARING RALLY MANY THINK THAT THE MARKET'S RECENT HAMMERING WAS NOTHING MORE THAN A TYPICAL SLUMP IN A BULL MARKET IT WAS JUST A HEALTHY CORRECTION THAT MADE EVERYONE SICK RATHER THAN THE START OF A GRIZZLY BEAR SAYS ALFRED GOLDMAN DIRECTOR OF MARKET ANALYSIS AT AG EDWARDS & SONS IN ST LOUIS SOME ANALYSTS SAY THAT THE STOCK MARKET'S VIOLENT PRICE SWINGS EARLY LAST WEEK WERE THE DEATH THROES OF THE CORRECTION AC MOORE PORTFOLIO MANAGER AND STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF SAYS THE CORRECTION'S FATE WAS SEALED WHEN THE INDUSTRIAL AVERAGE LEAPED 82 POINTS TUESDAY RIGHT AFTER PLUNGING 42 POINTS MONDAY THE MARKET'S ACTIVITY TENDED TO FALL INTO THE PATTERN OF CLIMACTIC ACTION MR MOORE SAID BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY CITES THREE MAJOR FACTORS THAT LEAD HIM TO THE CONCLUSION THE CORRECTION IS OVER FOR ONE THING THE WORST OF THE BOND MARKET ROUT SEEMS PAST AND INTEREST RATES ARE LIKELY TO RETURN TO MORE REASONABLE LEVELS HE ALSO EXPECTS ECONOMIC REPORTS IN COMING WEEKS TO SHOW STEADY GROWTH AND THAT GROWTH WILL CONTINUE TO PRODUCE HEALTHY PROFIT REPORTS THAT WILL LIFT STOCK PRICES THAT ISN'T TO SAY HE'S LOOKING FOR FIREWORKS MR WIEN ESTIMATES THAT THE INDUSTRIAL AVERAGE WILL GAIN ONLY 5 TO 10 THIS YEAR THERE'S A GOOD CHANCE THE MARKET WILL GET TO 4000 BEFORE YEAR'S END HE PREDICTS OTHER ANALYSTS FIGURE THE BOND MARKET HOLDS THE KEY TO THE STOCK MARKET'S PERFORMANCE STOCK PRICES HAVE LARGELY MIRRORED THE MOVEMENT OF BOND PRICES THROUGHOUT THE DOWNTURN AND ANOTHER BIG PLUNGE IN THE BOND MARKET COULD CERTAINLY PUMMEL STOCKS BADLY TELL ME WHAT THE BOND MARKET IS GOING TO DO AND I'LL TELL YOU WHAT THE STOCK MARKET WILL DO IN TERMS OF A LOW SAYS STEVEN RESNICK DIRECTOR OF QUANTITATIVE ANALYSIS AT COWEN ASSET MANAGEMENT BUT HE ADDS THAT I THINK THE MAJOR PHASE OF THE STOCK MARKET'S DETERIORATION IS OVER SETH GLICKENHAUS A VETERAN PORTFOLIO MANAGER WHO RUNS GLICKENHAUS & CO IN NEW YORK AGREES FOR NOW ALL THE DAMAGE HAS BEEN DONE THE PUBLIC DIDN'T REACT BADLY TO THE BREAK MR GLICKENHAUS EXPECTS THE INDUSTRIAL AVERAGE TO CLIMB BACK ABOVE 3800 BUT HE THINKS THE 4000 LEVEL WILL PROVE TO BE A FORMIDABLE BARRIER JUST AS THE 300 MARK WAS IN THE 1930S AND THE 1000 LEVEL WAS IN THE LATE 1960S AND EARLY 1970S WITH THE RECENT RISE IN INTEREST RATES BONDS ARE STARTING TO PRESENT TOUGHER COMPETITION TO THE STOCK MARKET FOR INVESTORS' MONEY MR GLICKENHAUS SAYS ACCORDING TO AMG DATA SERVICES MUTUAL FUNDS EXPERIENCED AN OUTFLOW OF ONLY ABOUT 06 OF THEIR ASSETS IN THE WEEK ENDED WEDNESDAY IF THE CORRECTION IS OVER IT WAS AN ABSOLUTELY TYPICAL DOWNTURN BOTH IN SEVERITY AND IN LENGTH IN THE 50 YEARS THROUGH DECEMBER THE DOW JONES INDUSTRIAL AVERAGE HAD 127 STOCKMARKET DECLINES OF 5 OR MORE ACCORDING TO NED DAVIS RESEARCH INC IN NOKOMIS FLA SUCH DIPS ARE THE MOSQUITO BITES OF INVESTING AND TYPICALLY OCCUR MORE THAN TWICE A YEAR THE AVERAGE LOSS IN THE 127 DECLINES WAS 95 STARTING FROM THIS YEAR'S JAN 31 HIGH OF 397836 SUCH A DECLINE WOULD HAVE CLIPPED THE INDUSTRIAL AVERAGE BY ABOUT 378 POINTS THE ACTUAL DAMAGE TO THE CLOSING LOW LAST MONDAY WAS 385 POINTS OR 97 WHAT ABOUT LENGTH THE AVERAGE DECLINE LASTED ABOUT 49 TRADING DAYS OR A LITTLE MORE THAN TWO MONTHS THE RECENT DECLINE LASTED FROM THE START OF FEBRUARY INTO EARLY APRIL A LITTLE MORE THAN TWO MONTHS WHAT ARE THE CHANCES THE CORRECTION ISN'T OVER BASED ON MARKET HISTORY ONLY 26 OF 5 DROPS TURN INTO 10 DROPS ONCE THE MARKET'S DOWN 10 THERE'S A 48 CHANCE IT WILL FALL A TOTAL OF 15 OR MORE AND ONCE IT'S DOWN 15 THERE'S A 56 CHANCE OF THE TOTAL DAMAGE REACHING 20 WHICH IS ONE COMMON DEFINITION OF A BEAR MARKET OR SEVERE DOWNTURN SINCE 1943 THERE HAVE BEEN 33 MODERATE CORRECTIONS OF 10 OR MORE 16 SEVERE CORRECTIONS OF 15 OR MORE AND NINE OUTRIGHT BEARMARKET DROPS OF 20 OR MORE THE LATEST BEAR MARKET WAS IN SUMMER AND FALL OF 1990 AS TROOPS MASSED IN KUWAIT TO FIGHT IRAQ AND A US RECESSION WAS BEGINNING ONE CONCERN SOME PORTFOLIO MANAGERS HAVE ABOUT THE CURRENT MARKET IS THAT THE RECENT SLIDE IN THE DOW JONES INDUSTRIAL AVERAGE STILL LEFT STOCKS IN PRICEY TERRITORY AT LAST MONDAY'S CLOSING LEVEL OF 359335 THE INDUSTRIAL AVERAGE HAD A PRICE/EARNINGS RATIO OF 247 BASED ON THE PREVIOUS FOUR QUARTERS' EARNINGS AND A PRICE/DIVIDEND RATIO OF 352 THOSE RATIOS WHILE LESS BLOATED THAN THEY WERE EARLIER IN THE YEAR ARE STILL AMONG THE HIGHEST IN MARKET HISTORY SINCE 1905 THE AVERAGE P/E FOR THE INDUSTRIAL AVERAGE HAS BEEN 136 ANYTHING ABOVE 224 IS IN THE PRICIEST 10 OF VALUATIONS STOCKS OVER THE YEARS HAVE SOLD FOR AN AVERAGE OF 241 TIMES THEIR DIVIDENDS WITH AN AVERAGE DIVIDEND YIELD OF 41 A PRICE/DIVIDEND RATIO OF 321 OR MORE DEFINES THE TOP 10 OF VALUATIONS PUT ANOTHER WAY ANY DIVIDEND YIELD OF LESS THAN 31 IS IN THE SKIMPIEST 10 AS OF LAST MONDAY'S CLOSE THE DIVIDEND WAS A PALTRY 284 SOME INVESTORS CLING TO A BLEAK VIEW JOHN BOWEN WHO RUNS AN INVESTMENT COMPANY BEARING HIS NAME IN CORONADO CALIF EXPECTS STOCK PRICES TO GRIND LOWER HE DOUBTS A PREVAILING ARGUMENT THAT MUTUAL FUND INVESTORS WILL HANG TOUGH IN THE FACE OF ANOTHER STEEP DROP IN PRICES I THINK THIS QUARTER WILL BE LOOKED AT AS THE START OF A BEAR MARKET HE SAYS JOSEPH GRANVILLE A KANSAS CITY MO NEWSLETTER PUNDIT ADVISED SUBSCRIBERS LAST MONDAY NIGHT TO CLOSE OUT SHORT POSITIONS IN EXPECTATION THAT THE CORRECTION IS OVER FOR NOW BUT HE EXPECTS ONLY A TWOTOTHREEWEEK BOUNCE FOLLOWED BY ANOTHER SLIDE THAT WILL TAKE THE INDUSTRIAL AVERAGE DOWN TO ABOUT 2000 BY EARLY 1995 WILL WEINSTEIN SENIOR PARTNER AT GENESIS MERCHANT GROUP SECURITIES IN SAN FRANCISCO DOESN'T BELIEVE THERE WAS A TRUE SELLING CLIMAX IN THE RECENT SLIDE IS THE CORRECTION OVER MY EYES SAY YES BUT MY STOMACH SAYS NO STOCKS LOST GROUND AS BOND PRICES WEAKENED AGAIN THE DOW JONES INDUSTRIAL AVERAGE SLUMPED 1900 POINTS TO CLOSE AT 367426 STANDARD & POOR'S 500STOCK INDEX EASED 378 TO 44710 AND THE NASDAQ COMPOSITE INDEX TUMBLED 646 TO 74871 DECLINING ISSUES OUTPACED ADVANCERS 1406 TO 800 VOLUME FELL TO 262490000 SHARES FROM 287730000 SHARES THURSDAY FOR THE WEEK THE INDUSTRIAL AVERAGE WAS UP 11 THE S&P 500 03 AND THE NASDAQ COMPOSITE 07 ECONOMICALLY SENSITIVE STOCKS WERE AMONG THE HARDEST HIT FRIDAY AS INVESTORS TOOK PROFITS AFTER THE MIDWEEK GAINS CHRYSLER WAS ONE OF THE MOST ACTIVE BIG BOARD ISSUES DROPPING 3 TO 50 7/8 FORD MOTOR LOST 2 1/4 TO 58 3/8 AND GENERAL MOTORS 2 3/8 TO 57 3/4 TRUCKING ISSUES ALSO WERE HURT REELING FROM THE TEAMSTERS' STRIKE ROADWAY SERVICES FELL 1 7/8 TO 65 5/8 AND JB HUNT TRANSPORT SKIDDED 2 1/4 TO 21 BOTH ON NASDAQ CONSOLIDATED FREIGHTWAYS EASED 1/8 TO 26 3/8 ON THE BIG BOARD TRUCKING STOCKS ALSO WERE HURT BY A REPORT IN THE WALL STREET JOURNAL THAT CONGRESS IS CLOSE TO PASSING A BILL THAT COULD BRING PACKAGE DELIVERY CONCERNS SUCH AS UNITED PARCEL SERVICE ONTO THE TRUCKERS' TURF MARVEL ENTERTAINMENT SLUMPED 2 TO 19 AFTER THE NEW YORK COMPANY SAID ITS EARNINGS GROWTH WILL BE WEAKER THAN EXPECTED IN THE FIRST HALF OF 1994 CITING SOFTNESS IN ITS PUBLISHING AND SPORTS CARD BUSINESS SALOMON BROTHERS CUT ITS RATING ON THE STOCK TO HOLD FROM BUY MID ATLANTIC MEDICAL JUMPED 5 1/4 TO 49 1/8 THE ROCKVILLE MD COMPANY EXPECTS ITS FIRSTQUARTER PROFIT TO BE 52 CENTS TO 57 CENTS A SHARE WELL ABOVE THE 21 CENTS A SHARE IT EARNED A YEAR EARLIER THE HEALTH MAINTENANCE ORGANIZATION CITED STRONG MEMBERSHIP GROWTH AND LOWER THAN EXPECTED MEDICAL UTILIZATION TANDY RECOVERED PART OF ITS LOSSES FROM THURSDAY RISING 1 5/8 TO 34 1/8 THE STOCK TUMBLED 3 5/8 THURSDAY AFTER THE FORT WORTH TEXAS ELECTRONICS RETAILER SAID ITS FIRSTQUARTER EARNINGS WERE AT THE LOW END OF ANALYSTS' EXPECTATIONS CHIQUITA BRANDS FELL 1 1/2 TO 15 7/8 PRUDENTIAL SECURITIES LOWERED THE RATING ON THE CINCINNATI FRUIT AND VEGETABLE COMPANY TO HOLD FROM BUY AND CUT ITS ESTIMATE OF THE COMPANY'S FIRSTQUARTER EARNINGS TO 60 CENTS A SHARE IT HAD PREDICTED FIRSTQUARTER EARNINGS OF 65 CENTS A SHARE IF THE STOCK MARKET'S SLIDE ENDED APRIL 4 IT WAS JUST A TYPICAL CORRECTION THE DROP WAS 97 VS AN AVERAGE DECLINE OF 95 9404110011 940411 URANIUM PACT BETWEEN US AND RUSSIA IS CHALLENGED BY CANADA UNDER NAFTA BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA IS OFFICIALLY CHALLENGING A RECENTLY NEGOTIATED URANIUMSALES AGREEMENT BETWEEN THE US AND RUSSIA CLAIMING THAT IT DISCRIMINATES AGAINST CANADIAN PRODUCERS CANADIAN TRADE MINISTER ROY MACLAREN SAID THE USRUSSIAN PACT WILL ENDANGER THE CANADIAN URANIUM INDUSTRY THE PACT IS SEEN AS A POTENTIAL BOON TO US URANIUM MINES WHICH CURRENTLY FACE TOUGH COMPETITION FROM CANADA'S LOWCOST HIGHGRADE MINES UNDER THE AGREEMENT WHICH WAS SIGNED AND PUT INTO EFFECT LAST MONTH US UTILITIES MAY BUY UP TO 43 MILLION POUNDS OF RUSSIAN URANIUM OVER 10 YEARS PROVIDED THEY PURCHASE AN EQUAL AMOUNT OF NEWLY PRODUCED US URANIUM THE CANADIAN GOVERNMENT CLAIMS THE AGREEMENT WOULD FREEZE CANADA AND OTHER COUNTRIES OUT OF THE US MARKET CANADA ONE OF THE LARGEST SUPPLIERS TO THE US CURRENTLY SUPPLIES ABOUT 24 OF THE US URANIUM DEMAND IF IT ALL CAME TO PASS THERE SIMPLY WOULDN'T BE ANY ROOM FOR ANY CANADIAN URANIUM A CANADIAN GOVERNMENT OFFICIAL SAID CANADA IS CHALLENGING THE PACT UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH IS AIMED AT ELIMINATING TRADE BARRIERS BETWEEN CANADA THE US AND MEXICO UNDER NAFTA CANADA AND THE US HAVE A 30DAY PERIOD ENDING APRIL 21 TO DISCUSS THE ISSUE CANADA MAY THEN REFER THE CASE TO A TRADE PANEL WITH MEMBERS FROM THE THREE COUNTRIES THE ARRANGEMENT GIVES RUSSIA PREFERENTIAL ACCESS TO THE US MARKET AND ENCOURAGES NEW PRODUCTION OF OTHERWISE UNECONOMIC URANIUM DEPOSITS IN THE US SAID JERRY GRANDEY A VICE PRESIDENT AT CAMECO CORP A MAJOR CANADIAN URANIUM PRODUCER SEVERAL EUROPEAN COUNTRIES AND AUSTRALIA ALSO HAVE PROTESTED THE USRUSSIA AGREEMENT INDUSTRY ANALYSTS SAY THE PRICE OF THE COMBINED USRUSSIAN URANIUM WILL BE CHEAPER THAN WESTERN MINES CAN OFFER BECAUSE OF RUSSIA'S URANIUM STOCKPILES WHICH ARE BELIEVED TO BE HUGE NO ONE KNOWS FOR CERTAIN JUST HOW LARGE THE STOCKPILES ARE SAID CURT STEEL VICE PRESIDENT OF THE URANIUM EXCHANGE CO A US URANIUMINDUSTRY CONSULTANT AND BROKER IT IS BELIEVED THAT MOST OF THE URANIUM IS OF A HIGHLY ENRICHED GRADE FOUND IN NUCLEAR WARHEADS WHICH CAN BE DILUTED AND USED IN POWER PLANTS MR STEEL SAID WITH NO PRODUCTION COSTS RUSSIA CAN SELL THE STOCKPILED URANIUM FOR AS LITTLE AS IT WANTS HE SAID THE CURRENT MARKET PRICE FOR URANIUM IS ABOUT 10 A POUND RUSSIAN URANIUM IS PRICED AT ABOUT 7 A POUND THE CANADIAN TRADE MINISTER MR MACLAREN HAS ARGUED THAT UNDER NAFTA CANADA'S URANIUM PRODUCERS MUST RECEIVE TREATMENT EQUAL TO US PRODUCERS WHICH IN THIS CASE WOULD ALLOW CANADIAN URANIUM TO BE MATCHED WITH RUSSIAN IMPORTS THE NEW USRUSSIA PACT AMENDS A 1992 AGREEMENT THAT PROHIBITED RUSSIA FROM SELLING URANIUM IN THE US MARKET UNTIL THE MARKET PRICE REACHED 13 A POUND THE EARLIER AGREEMENT WAS CHANGED BECAUSE THE MARKET PRICE DIDN'T RISE TO 13 AND BECAUSE THE AGREEMENT WAS DIFFICULT TO ENFORCE THE US GOVERNMENT HAS TRIED TO PROVIDE A MARKET FOR RUSSIAN URANIUM TO ENCOURAGE RUSSIA TO DISMANTLE ITS NUCLEAR WARHEADS AND TO HELP IT MAKE THE TRANSITION TO A MARKET ECONOMY THE URANIUM MARKET HAS BEEN SPOOKED FOR A LONG TIME WITH A LOT OF UNCERTAINTY SAID ONE SENIOR US GOVERNMENT OFFICIAL THE NEW AGREEMENT RESOLVES THE RELATIONSHIP BETWEEN THE LARGEST URANIUM CONSUMER IN THE WORLD AND ONE OF THE LARGEST PRODUCERS IN THE WORLD THAT'S GOOD FOR EVERYBODY HE SAID CANADA IS ALSO FACING TOUGH COMPETITION FROM OTHER LOWPRICED RUSSIAN COMMODITIES INCLUDING NICKEL ALUMINUM AND POTASH 9404110010 940411 LEISURE & ARTS THE GALLERY A STROLL THROUGH ART'S AGES BY FARAH NAYERI GRENOBLE FRANCE ANYONE WHO BELIEVES PARIS TO BE FRANCE'S SOLE REPOSITORY OF PROMINENT ARTWORK OUGHT TO RECONSIDER THE COUNTRY'S FIRST MODERNART MUSEUM WAS BORN NOT IN PARIS BUT IN GRENOBLE UNBEKNOWNST TO MANY THIS SMALL PROVINCIAL CITY NESTLED IN A HANDSOME ALPINE VALLEY HAS A CULTURAL STATURE QUITE INCOMMENSURATE TO ITS SIZE AND THE OPENING OF THE NEW GRENOBLE MUSEUM THE LARGEST TO DATE OUTSIDE THE CAPITAL PROMISES TO EARN THE CITY A BIG ASTERISK ON THE EUROPEAN CULTURAL MAP STROLLING THROUGH THE MUSEUM IS AKIN TO TAKING A RIDE THROUGH THE AGES FROM A TIME WHEN ART MEANT AN ILLUMINATED ICON OF THE VIRGIN MARY TO A TIME WHEN IT HAS COME TO MEAN A ROW OF SUSPENDED UNDERWOOD TYPEWRITERS CLICKING IN OPEN SPACE SEVEN CENTURIES OF WESTERN ART WITH PARTICULAR EMPHASIS ON THE 17TH AND 20TH CENTURIES ARE SPANNED IN THE MUSEUM'S EXHIBITION HALLS WHICH ARE ARRANGED IN CHRONOLOGICAL ORDER IT WAS CURATOR SERGE LEMOINE WHO DECIDED ON THIS LINEAR CHRONOLOGICAL CONCEPTION AND IT WAS HE WHO LAID DOWN THE MANY REQUIREMENTS FOR THE ARCHITECTS TO MEET NATURAL LIGHTING THROUGH PHOTOELECTRIC SKYLIGHTS TALL WALLS FOR THE MANY OVERSIZED PAINTINGS AND A SINGLE FLOOR TO HOLD ALL OF THE WORKS THE RESULT IS AN UNREMARKABLE THOUGH NOT UGLY BUILDING IN WHITE CONCRETE THAT MR LEMOINE HIMSELF ADMITS IS AT THE SERVICE OF THE ART THAT ART INCLUDES SHOWPIECES ENVIED THE WORLD OVER THE CROWNING ITEMS A FOURPART SERIES BY ZURBARAN DATING FROM 163839 SCENES OF THE LIFE OF CHRIST TAKEN FROM A CHARTERHOUSE RETABLE IN SPAIN AND MATISSE'S INTERIEUR AUX AUBERGINES OF 1911 ONE OF THE ARTIST'S FOUR INTERIORS OF UTMOST IMPORTANCE IN UNDERSTANDING HIS OEUVRE VISITORS CAN BE FORGIVEN FOR WONDERING WHAT SUCH JEWELS OF EUROPE'S AESTHETIC HERITAGE ARE DOING IN THIS SLEEPY CITY SUFFICE IT TO SAY THAT GRENOBLE WAS LUCKY REVOLUTIONARY SEIZURES GIFTS OF THE STATE TAXFUNDED ACQUISITIONS AND DONATIONS HAVE GRACED THE CITY WITH A COLLECTION WORTHY OF BOTH THE LOUVRE AND THE POMPIDOU CENTER SET UP AT THE TAIL END OF THE REVOLUTION IN 1796 JUST THREE YEARS AFTER THE LOUVRE'S INAUGURATION THE GRENOBLE MUSEUM BEGAN ITS COLLECTION WITH WORKS SEIZED DURING THE REVOLUTION FROM CHURCHES IN THE VICINITY NOTABLY A PORTRAIT OF ST JEROME BY GEORGES DE LA TOUR FIFTEEN YEARS LATER GRENOBLE RECEIVED A SERIES OF WORKS THAT PARIS HAD NO MORE ROOM FOR INCLUDING A GIGANTIC RUBENS MASTERPIECE ST GREGORY THE POPE SURROUNDED BY SAINTS 160607 PRIDE OF GRENOBLE'S FLEMISH PAINTING COLLECTION THEN THERE WERE THE MUSEUM'S OWN ACQUISITIONS NO LESS SIGNIFICANT A RAVISHING VIEW OF VENICE BY CANALETTO 172628 AND A SMALL BUT NOTABLE DELACROIX 185558 PURCHASED WHILE THE PAINTER WAS STILL LIVING AND OF COURSE DONATIONS BY A LONG LINE OF BENEFACTORS KEPT THE COLLECTIONS REPLENISHED THE ZURBARAN SERIES FOR INSTANCE WAS GIVEN BY GEN LEON DE BEYLIE WHO HAD PURCHASED THE WORKS IN 1904 A MAJOR EARLY 20THCENTURY COLLECTION CONTAINING WORKS BY DERAIN VLAMINCK AND MATISSE WAS THE GIFT OF GEORGETTE AGUTTE A PAINTER AND WIFE OF POLITICIAN MARCEL SEMBAT ARTISTS TOO VOLUNTEERED THEIR WORKS MATISSE FOR INSTANCE RECLAIMED HIS INTERIEUR AUX AUBERGINES FROM THE COLLECTOR MICHAEL STEIN BROTHER OF GERTRUDE STEIN FOR THE MUSEUM PICASSO DONATED HIS LA FEMME LISANT WOMAN READING A PONDEROUS GRAY FIGURE REPRESENTING HIS WIFE OLGA IN 1920 EVEN DR ALBERT BARNES THE CELEBRATED AMERICAN ART COLLECTOR PARTED WITH A 1915 PORTRAIT OF PAUL GUILLAUME BY GIORGIO DE CHIRICO WHICH HE NO DOUBT INITIALLY INTENDED FOR HIS OWN MUSEUM IN PENNSYLVANIA THAT SO MANY EARLY 20THCENTURY ARTISTS AND COLLECTORS CHOSE TO BESTOW THEIR WORKS UPON THE MUSEUM IN GRENOBLE MAY AGAIN SEEM MYSTERIOUS GRENOBLE HAS ONE MAN TO THANK PIERREANDRE FARCY OR ANDRYFARCY AS HE WAS COMMONLY KNOWN CURATOR OF THE GRENOBLE MUSEUM FROM 1919 UNTIL 1949 A PAINTER AND ART CRITIC BY PROFESSION ANDRYFARCY WAS A HABITUE OF PARIS ART CIRCLES AND ACCUSTOMED TO HOBNOBBING WITH EVERYONE FROM PICASSO ON DOWN THEIR DONATIONS WERE A TRIBUTE TO HIS STATURE AS AN OUTSTANDING AESTHETE AND CONNOISSEUR ANDRYFARCY DID MORE THAN ACCEPT GIFTS HE PURCHASED COUNTLESS PAINTINGS FROM ARTISTS IMMEDIATELY ON COMPLETION AT THE TIME THIS WAS A NEW PHENOMENON FRENCH MUSEUMS HAD STOPPED BUYING ART FROM LIVING ARTISTS SIMPLY BECAUSE THEY DISLIKED THE WORKS OF RENOIR MONET AND THE LIKE GRENOBLE QUICKLY TOOK THE LEAD BY ACQUIRING PIECES SUCH AS A LUMINOUS BONNARD LEGER'S LE REMORQUEUR AND A GORY SOUTINE BOEUF ECORCHE SUCCESSIVE CURATORS ALL THE WAY UP TO MR LEMOINE HAVE WITH PUBLIC MONEY KEPT UP THE TRADITION WITH SOME 700000 A YEAR IN ACQUISITION MONEY THE MUSEUM HAS ROOM TO MANEUVER AND A WALK THROUGH THE VAST CONTEMPORARY ART COLLECTION INDICATES THAT THE MONEY HAS BEEN PUT TO GOOD USE FROM SOL LEWITT AND SAM FRANCIS TO GILBERT AND GEORGE AND TOM WESSELMAN GRENOBLE BOASTS A FANTASTIC SAMPLING OF CONTEMPORARY ART SECOND IN FRANCE ONLY TO THAT OF THE POMPIDOU CENTER TEMPORARY EXHIBITIONS SUCH AS THE REBECCA HORN AND KURT SCHWITTERS SHOWS SET FOR NEXT YEAR WILL SERVE TO ENHANCE THE MUSEUM'S REPUTATION AND OCCASIONALLY TO DISPLAY WORKS THAT OTHERWISE SIT IN STORAGE ROOMS FOR DESPITE ITS 21600 SQUARE YARDS OF SPACE ONLY 1250 WORKS ARE PERMANENTLY ON VIEW SOME 3500 REMAIN IN THE CELLARS THIS IS AN IMPROVEMENT NEVERTHELESS FROM THE LIMITED EXHIBITION SPACE OF THE MUSEUM'S FORMER HOME A 19THCENTURY NEOCLASSICAL EDIFICE ACROSS TOWN IN THE NEXT FEW YEARS TWO OTHER PROVINCIAL MUSEUMS ARE SCHEDULED TO GRAB THE SPOTLIGHT LYON AND ROUEN WHICH WILL BE GETTING SPACIOUS NEW WINGS AND MATCHING IF NOT OUTDOING GRENOBLE THE DAY WILL SOON COME WHEN ART LOVERS WILL STOP NOT JUST IN PARIS BUT OUTSIDE TOO FOR A COMPLETE PICTURE OF FRANCE'S CULTURAL TREASURES MS NAYERI IS A WRITER IN PARIS 9404110009 940411 TECHNOLOGY TWO FACE COMPUTERFRAUD ALLEGATIONS OVER SOFTWARE PIRACY ON THE INTERNET BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON SOFTWARE COMPANIES ARE CHEERING BUT ADVOCATES OF ELECTRONIC FREE SPEECH ARE CONCERNED FOLLOWING TWO SEPARATE INCIDENTS IN WHICH AUTHORITIES ALLEGED NEW ENGLAND COLLEGE STUDENTS COMMITTED COMPUTER FRAUD TIED TO SOFTWARE PIRACY ON THE INTERNET THE MOVES SERVED NOTICE THAT AUTHORITIES ARE WATCHING FOR COPYRIGHT VIOLATIONS ON THE INTERNET AN INTERNATIONAL PUBLIC COMPUTER NETWORK ACCESSIBLE TO AN ESTIMATED 20 MILLION PEOPLE THAT IS WIDELY SEEN AS A PROTOTYPE OF THE BALLYHOOED INFORMATION SUPERHIGHWAY SOME CRITICS SAID THE MOVES ARE LEGALLY QUESTIONABLE AND IF UPHELD COULD STIFLE THE FREE FLOW OF INFORMATION IN CYBERSPACE IN ONE CASE ANNOUNCED BY THE US ATTORNEY IN BOSTON A FEDERAL GRAND JURY CHARGED MASSACHUSETTS INSTITUTE OF TECHNOLOGY STUDENT DAVID LAMACCHIA WITH COMPUTER FRAUD IT SAID THAT MR LAMACCHIA WHO IS 20 YEARS OLD RAN A COMPUTER BULLETIN BOARD THAT HELPED PEOPLE OBTAIN FOR FREE SOFTWARE PROGRAMS THAT COMPANIES SELL AND HAVE COPYRIGHTED IN THE OTHER CASE RHODE ISLAND STATE POLICE IN PROVIDENCE ARRESTED DANIEL A GOLDWATER A 20YEAROLD BROWN UNIVERSITY STUDENT FOR ALLEGED COMPUTER FRAUD OVER DISTRIBUTING COPYRIGHTED SOFTWARE OVER THE INTERNET THE ARREST CAME AFTER BROWN OFFICIALS PASSED ALONG TO POLICE AN ANONYMOUS TIP ABOUT MR GOLDWATER PRODUCERS OF SOFTWARE AND OTHER INTELLECTUAL PROPERTY SUCH AS NEWSLETTERS MUSIC PHOTOS AND BOOKS HAVE LONG COMPLAINED ABOUT COPYRIGHT ENFORCEMENT IN CYBERSPACE COMPUTERS MAKE IT EASY TO COPY ANY DIGITAL INFORMATION AND STORE IT ON A COMPUTER BULLETIN BOARD FROM WHICH PEOPLE ALL OVER THE WORLD CAN MAKE PERSONAL COPIES WITHOUT PAYING FOR THEM MANY SUCH PROGRAMS AND PHOTOS THAT TRAVEL THE INTERNET ARE SOCALLED FREEWARE WHICH IS DONATED BY ITS PRODUCERS BUT COPYRIGHT HOLDERS SAY SOME BULLETIN BOARDS ARE FULL OF COPYRIGHT MATERIAL BY GOING AFTER THE BULLETINBOARD OPERATORS AUTHORITIES SIDESTEP THE MORE DIFFICULT TASK OF CATCHING THE INDIVIDUALS MAKING COPIES OF PROGRAMS THE BOSTON ACTION IN PARTICULAR WAS INTENDED AS A WARNING THE INDICTMENT WILL SEND A LOUD AND CLEAR MESSAGE SAID US ATTORNEY DONALD K STERN THE INTERNET HAS PERMITTED COPYING TO HAPPEN ON AN INTERNATIONALLY MASSIVE SCALE WITH TREMENDOUS LOSSES TO SOFTWARE OWNERS BUT SOME COMPUTERRIGHTS PROPONENTS SAID THE INDICTMENT GOES TOO FAR BECAUSE MR LAMACCHIA DIDN'T ACTUALLY COPY THE SOFTWARE HIMSELF IT ISN'T CLEAR WHAT THE CRIME WAS SAID HARVEY SILVERGLATE WHO IS REPRESENTING THE DEFENDANT THIS IS JUST ANOTHER THEATER IN THE GREAT CIVILLIBERTIES BATTLE OVER CONTROL OF VARIOUS TELECOMMUNICATIONS HE ADDED ACCORDING TO THE INDICTMENT MR LAMACCHIA USED MIT COMPUTERS TO ESTABLISH A COMPUTER BULLETIN BOARD CALLED CYNOSURE CONNECTED TO THE INTERNET MR STERN SAID OVER 1 MILLION WORTH OF SOFTWARE WAS ILLEGALLY COPIED FROM CYNOSURE ACCORDING TO THE INDICTMENT MR LAMACCHIA ENGAGED IN A CONSPIRACY THAT INVOLVED DISSEMINATING THE BULLETIN BOARD'S ADDRESS AND LETTING OTHERS AVAIL THEMSELVES OF THE OPPORTUNITY TO COPY COMPUTER FILES THE INDICTMENT DOESN'T CHARGE THAT MR LAMACCHIA HIMSELF COPIED THE PROGRAMS OR DISTRIBUTED THEM MR LAMACCHIA APPARENTLY DIDN'T CHARGE PEOPLE TO USE THE BOARD THE INDICTMENT QUOTED A COMPUTER MESSAGE FROM JOHN GAUNT SYSOP COMPUTERESE FOR SYSTEM OPERATOR IT SAID IF ANYONE HAS THIS STUFF I'D APPRECIATE IT HE THEN NAMED SIM CITY A GAME BY MAXIS CORP EXCEL 50 A MICROSOFT CORP SPREADSHEET PROGRAM AND WORDPERFECT 60 A WORDPERFECT CORP WORDPROCESSING PROGRAM MR LAMACCHIA COULDN'T BE REACHED FOR COMMENT MR SILVERGLATE HIS ATTORNEY SAID THAT WITH COMPUTERS CONNECTED TO THE INTERNET IT IS VERY DIFFICULT TO PROVE WHO ACTUALLY WROTE A MESSAGE THE SOFTWARE THAT WAS UPLOADED AND DOWNLOADED WENT THROUGH A SOCALLED ANONYMOUS SERVER A COMPUTER IN FINLAND THAT PRESERVES PRIVACY BY STRIPPING SENDERS' ADDRESSES OFF MESSAGES THE BOARD WAS IN OPERATION FROM NOV 21 1993 TO JAN 5 1994 AN MIT SPOKESMAN SAID THE UNIVERSITY DISCOVERED THE BOARD AND NOTIFIED THE FEDERAL BUREAU OF INVESTIGATION BUT THE FBI WAS ALREADY WORKING ON THE CASE SIMILARLY IN PROVIDENCE MR GOLDWATER WAS ARRESTED IN CONNECTION WITH A BULLETIN BOARD FOR WHICH HE DIDN'T COLLECT FEES IN AN INTERVIEW HE SAID IT ISN'T CLEAR THAT MY CASE IS SIMILAR TO MR LAMACCHIA'S HE DECLINED TO COMMENT FURTHER A BROWN UNIVERSITY SPOKESMAN SAID THE SCHOOL STRIVES TO PREVENT ABUSE OF THE INTERNET BECAUSE IT'S A TREMENDOUSLY VALUABLE RESOURCE FOR US SOFTWARE COMPANIES HAVE BEEN PRESSING THE GOVERNMENT TO GO AFTER SOFTWARE PIRATES WHO THEY CONTEND COST THEM BILLIONS OF DOLLARS IN REVENUE ANNUALLY BY COPYING SOFTWARE AND EITHER GIVING IT AWAY OR SELLING IT AT LOW PRICES THE SOFTWARE PUBLISHERS ASSOCIATION A TRADE GROUP HAS PROSECUTED A NUMBER OF COMPANIES THAT HAVE ILLEGALLY COPIED SOFTWARE AND THE GOVERNMENT HAS INDICTED A FEW BULLETIN BOARDS THAT CHARGED USERS TO DOWNLOAD PIRATED SOFTWARE PEOPLE FAMILIAR WITH SOFTWARE PIRACY SAID BULLETINBOARD OPERATORS WHO DON'T COLLECT FEES FROM CUSTOMERS HAVE RARELY BEEN CHARGED IN THE PAST ANDREW PRESTON PRESIDENT OF TMAKER CO A MOUNTAIN VIEW CALIF SOFTWARE MAKER SAID PRIVATE COMPANIES HAVE TROUBLE SUING BULLETIN BOARDS BECAUSE THESE SYSTEM OPERATORS GENERALLY HAVE NET ASSETS OF 3995 THERE'S NO MONEY IN IT FROM A RECOVERY PERSPECTIVE HARVARD LAW SCHOOL PROF LAURENCE TRIBE A CONSTITUTIONALLAW EXPERT SAID THE LACK OF A PROFIT MOTIVE SHOULD LEAD PROSECUTORS TO AVOID SUCH CASES BECAUSE INDICTMENT MIGHT CHILL THE OPEN TRANSMISSION OF INFORMATION IN CYBERSPACE 9404110008 940411 LETTERS TO THE EDITOR IT'S JUST SCANDALOUS IN RESPONSE TO MARK HELPRIN'S MARCH 25 EDITORIALPAGE ARTICLE SCHOOL FOR SCANDAL WHERE WAS THE NATIONAL MEDIA 18 MONTHS AGO THERE ARE PEOPLE IN THIS COUNTRY WHO ALMOST SEEM SURPRISED THAT THE PRESIDENT THEY ELECTED DOES NOT APPEAR TO BE TRUSTWORTHY EVEN THEN THERE WERE ALLEGATIONS ABOUT HIS MARITAL INFIDELITY THE WHITEWATER LAND DEAL AND HIS ASSOCIATION WITH DAN LASATER BUT THE LIBERAL MEDIA ALMOST SEEMED TO OVERLOOK ALL THAT IN FAVOR OF REPORTING ON BUS TOURS AND THE PROPER SPELLING OF POTATO IT IS TRUE THAT THE ECONOMY WAS NOT IN GOOD SHAPE BUT WHAT SHOULD WE EXPECT AFTER EIGHT YEARS OF STAGGERING GROWTH ONE OF THE FIRST THINGS ANY STUDENT IN ANY ECONOMY CLASS LEARNS IS THAT IT IS NORMAL FOR AN ECONOMY TO GO FROM RECESSION 1981 TO RECOVERY 1982 TO PROSPERITY 19839 TO DECLINE 1990 THE REAGANBUSH YEARS COMPRISED THE LARGEST PEACETIME EXPANSION THE WORLD HAD EVER SEEN YET THE PRESS CHOSE TO CHARACTERIZE THAT PERIOD AS THE DECADE OF GREED IF ONLY WE COULD REPEAT THAT AWFUL TIME NOW THAT THE ELECTION IS OVER THE PRESS CAN NO LONGER IGNORE THE ALLEGATIONS LITTLE BY LITTLE IT IS ALL COMING OUT MY QUESTIONS REMAIN WHERE WAS THE PRESS WHEN THE ARKANSAS BEAUTY QUEEN WAS SAYING THAT SHE HAD HAD AN AFFAIR WITH GOV CLINTON WHY DIDN'T THE PRESS INVESTIGATE WHITEWATER WHEN IT WAS FIRST HEARD OF WHY DIDN'T THE PRESS DISCUSS DAN LASATER THE ONLY ANSWERS I CAN COME UP WITH ARE THAT EITHER THEY WERE TOO BUSY TAKING AIM AT PRESIDENT BUSH OR THAT THEY SO BADLY WANTED ONE OF THEIR OWN IN THE WHITE HOUSE MR HELPRIN'S ESSAY WAS A WONDERFUL READ I HAD MY HEAD STUCK IN BAREXAM STUDIES IN THE EARLY '70S AND WAS UNAWARE THAT THE WATERGATE BREAKIN AND COVERUP NEVER HAPPENED RICHARD NIXON WAS FORCED TO RESIGN BECAUSE HE WAS THE FIRST AMERICAN PRESIDENT TO LOSE A WAR I HAD NEVER UNDERSTOOD THAT THIS WAS WHY SPIRO AGNEW RESIGNED AND ATTORNEY GENERAL JOHN MITCHELL WENT TO JAIL I HAVE TO READ THIS GUY'S NOVELS MR HELPRIN FAULTS PRESIDENT CLINTON FOR INSULTING THE REST OF THE COUNTRY WHEN HE SAID THAT THIS COUNTRY WOULD HAVE FEWER PROBLEMS IF MORE PEOPLE HAD STRONGER CHARACTER WOULD MR HELPRIN ALSO CRITICIZE RONALD REAGAN WHO FREQUENTLY MADE SUCH ASSERTIONS WHEN GEORGE BUSH AND PAT BUCHANAN URGED US TO ADOPT THEIR FAMILY VALUES WAS MR HELPRIN INSULTED AND INCENSED SEEKING TO CREMATE DEMOCRATS FOR THEIR ARROGANCE MR HELPRIN GOES ON TO CLAIM THAT THE AMERICAN PEOPLE ARE BLINDED TO SCANDAL AND BAMBOOZLED INTO ACQUIESCENCE BY THE DEMOCRATIC MONOPOLIZATION OF NOT ONLY THE PRESIDENCY BUT ALSO CONGRESS THE PRESS THE UNIVERSITIES PUBLIC EDUCATION HOLLYWOOD PUBLISHING LOCAL AND STATE GOVERNMENT THE UNIONS AND BUREAUCRACIES EVERYWHERE OF COURSE THOSE POOR AMERICAN PEOPLE DON'T KNOW ENOUGH TO READ LEARN AND THEN VOTE REPUBLICAN BUT MR HELPRIN WOULD BE GLAD TO DISABUSE THEM OF THEIR PITEOUS IGNORANCE WITH HIS DIVINE WISDOM DID THE CLINTONS STUFF THE BALLOT BOXES I THINK NOT MR HELPRIN GET OVER IT YOUR TEAM LOST MR HELPRIN IS TOO KIND THE CLINTONS AND THEIR COTERIE ARE THE MOST RECENT AND BLATANT EXAMPLE OF LEADERS WHO POSSESS WHAT FA HAYEK CALLED THE FATAL CONCEIT ENAMORED BY THEIR OWN INTELLIGENCE AND GOOD INTENTIONS THEY FEEL DESTINED TO IMPROVE SOCIETY BY BENEVOLENTLY RESHAPING IT FROM ON HIGH THIS TOPDOWN BIAS IS AS INEFFECTIVE IN PUBLIC POLICY AS IT IS IN MANAGING A BUSINESS OR THE WHITE HOUSE FOR THAT MATTER IT LEADS TO A PATERNALISM WE SEE IN THE ADMINISTRATION'S HEALTH CARE REFORMS INDUSTRIAL POLICY THE PLAN TO BAN PUBLIC SMOKING AND THE NAIVE INTENT TO GROW THE ECONOMY IT IS SEEN IN A DISDAIN FOR THE RULES ORDINARY MORTALS HAVE TO FOLLOW SUCH AS TAX LAWS FOIA REQUESTS SECURITY CLEARANCES AND CRIMINALINVESTIGATION PROCEDURES WHILE TOPDOWN MAY WORK IN THEORY IT FAILS IN REALITY BECAUSE PEOPLE MARKETS AND EVENTS ARE FAR TOO COMPLICATED FOR EVEN REALLY SMART FOBS TO MICROMANAGE THE FRAUD MR HELPRIN OVERLOOKED IS HOW THIS TOPDOWN ADMINISTRATION CONTINUES TO PORTRAY ITSELF AS EGALITARIAN WHILE CASTING ITS FREEMARKET LIMITEDGOVERNMENT FOES AS ELITIST AND GREEDY WHITEWATER IF NOTHING ELSE IS WASHING AWAY THIS POPULIST RHETORIC EXPOSING THE CONCEIT THAT UNDERPINS THE LEFT'S POLICIES AND CHARACTER WHAT AN UNEXPECTED DELIGHT TO FIND THE STAID EDITORIAL PAGE ENLIVENED WITH THE HILARIOUS MUSINGS OF NOVELIST MARK HELPRIN HIS USE OF THE MOCKSERIOUS POLITICAL COMMENTARY TONE WAS BRILLIANT PRODUCING SUCH HOWLERS AS THE REAL EXPLANATION FOR WATERGATE NIXON BEING PUNISHED FOR LOSING A WAR AND BILL CLINTON AS A STANDIN FOR NICOLAE CEAUSESCU AND THE VILLAGE PEOPLE GREAT STUFF EQUALLY SIDESPLITTING WAS MR HELPRIN'S PSEUDOOPERATIC BEMOANING OF FRAUD AND SCANDAL IN THE WHITE HOUSE WHILE CITING NO SPECIFIC EVIDENCE OF EITHER I CAN'T WAIT UNTIL HE AIMS HIS RAPIER WIT AT AL D'AMATO AND BOB DOLE HE WILL WON'T HE 9404110007 940411 INVESTMENT FUND RUN BY BLACK ACQUIRES KEY PIECE OF DEBT IN O&Y'S US UNIT BY LARRY M GREENBERG AND MITCHELL PACELLE STAFF REPORTERS OF THE WALL STREET JOURNAL AN INVESTMENT FUND RUN BY LEON BLACK HAS ACQUIRED A KEY PIECE OF DEBT IN OLYMPIA & YORK'S US SUBSIDIARY WHICH COULD GIVE IT A POSITION SENIOR TO CITICORP AND OTHER CREDITORS FOR CONTROL OF THE REALESTATE CONCERN'S EQUITY BANK OF MONTREAL SAID IT SOLD THE FUND APOLLO REAL ESTATE INVESTMENTS ITS 31 SHARE OF A 140 MILLION LOAN MADE TO OLYMPIA & YORK COS USA BY A BANK GROUP LED BY JP MORGAN & CO TERMS OF THE SALE WEREN'T DISCLOSED THE LOAN WHICH IS INDIRECTLY SECURED BY SOME OF O&Y USA'S BEST PROPERTIES AMONG THEM NEW YORK'S WORLD FINANCIAL CENTER HAS ATTRACTED OTHER LARGE INVESTORS INCLUDING GENERAL MOTORS CORP'S PENSION FUND AND HONG KONG BILLIONAIRE LI KASHING MR BLACK NOW IS EXPECTED TO BE IN A STRONGER POSITION TO BID FOR THE REST OF THE LOAN PACKAGE AN APOLLO SPOKESMAN SAID MR BLACK AND OTHER OFFICIALS OF THE FUND WERE UNAVAILABLE FOR COMMENT THE US UNIT OF OLYMPIA & YORK DEVELOPMENTS LTD OF TORONTO IS NEGOTIATING TO RESTRUCTURE A TOTAL OF SOME 5 BILLION OF DEBT WITHOUT A BANKRUPTCYLAW FILING THE PARENT COMPANY EMERGED FROM CANADIAN BANKRUPTCYLAW PROTECTION LAST YEAR THE IDEA IS TO GAIN A POSITION THAT ALLOWS YOU TO INFLUENCE THE OVERALL RESTRUCTURING AND MAYBE END UP CONTROLLING IT IT'S THE SAME GAME MR BLACK HAS BEEN PLAYING ON THE CORPORATE SIDE SAID AN INDIVIDUAL WITH KNOWLEDGE OF O&Y USA'S DEBT MR BLACK THE FORMER HEAD OF MERGERS AND ACQUISITIONS AT DREXEL BURNHAM LAMBERT INC IS KNOWN FOR BUYING DEBT OF TROUBLED COMPANIES AND PARLAYING THESE HOLDINGS INTO DOMINANT EQUITY POSITIONS IN THIS CASE IT ISN'T CLEAR WHETHER MR BLACK'S ULTIMATE GOAL IS TO GAIN CONTROL OF THE COMPANY OR MERELY TO PROFIT FROM THE RESTRUCTURING MR BLACK FORMED THE APOLLO FUND LAST YEAR TO INVEST IN DISTRESSED REAL ESTATE IN NOVEMBER THE FUND PAID 160 MILLION FOR MORTGAGE BONDS THAT ARE SECURED BY THREE OTHER O&Y USA BUILDINGS IN NEW YORK UNLIKE THE EARLIER INVESTMENT HOWEVER THE NEW O&Y USA DEBT WOULDN'T GIVE MR BLACK ANY DIRECT CLAIM ON PROPERTY BUT IT EVENTUALLY COULD ALLOW HIM TO CONVERT THE DEBT INTO AN EQUITY STAKE IN THE ENTIRE COMPANY THE STRENGTH OF MR BLACK'S POSITION LIES IN THE COMPLEX LAYERS OF O&Y USA'S DEBT ASSUMING O&Y USA REACHES AGREEMENTS TO RESTRUCTURE THE DEBT OF ITS LEAD CREDITORS WHO HOLD DIRECT CLAIMS ON PROPERTY THE COMPANY WOULD THEN NEED TO SATISFY THE CLAIMS OF SECONDARY CREDITORS SUCH AS MR BLACK THE PARTICULAR DEBT THAT MR BLACK HAS BOUGHT RANKS SENIOR TO OTHER CLAIMS ON THE COMPANY'S EQUITY SUCH AS THOSE HELD BY CITICORP AND THE BIG BANKS THAT EFFECTIVELY CONTROL THE CANADIAN PARENT COMPANY MR BLACK'S MOVE REPRESENTS A PARTICULAR THREAT TO CREDITORS OF O&Y USA'S CANADIAN PARENT WHOSE MAIN HOPE OF RECOUPING THEIR EARLIER LOSSES TO OLYMPIA & YORK RESTS WITH THE US OPERATIONS SOME OF THESE CREDITORS INCLUDING CANADIAN IMPERIAL BANK OF COMMERCE AND HONGKONG & SHANGHAI BANKING CORP A UNIT OF HSBC HOLDINGS PLC ALSO HAVE BEEN INTERESTED IN ACQUIRING THE LOAN PACKAGE HELD BY THE JP MORGAN BANK GROUP WHICH ALSO INCLUDES SEVERAL EUROPEAN BANKS THE BANK GROUP'S OBJECTIVE TO ACHIEVE VALUE FOR ITS LOAN HAS NOT CHANGED A JP MORGAN SPOKESMAN SAID IT'S TOO EARLY TO SAY WHETHER MR BLACK'S PURCHASE OF SOME OF THE DEBT WILL CHANGE THE GROUP'S STRATEGY BUT THE BANK GROUP IS LOOKING FORWARD TO TALKING WITH APOLLO AND HEARING THEIR IDEAS HE SAID THE BANK GROUP IS BOTH CONSIDERING THE SALE OF THE REST OF THE LOAN PACKAGE AND NEGOTIATING WITH O&Y USA 9404110006 940411 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING ONE INITIAL PUBLIC OFFERING THE BIG BOARD BEGAN TRADING AGCO CORP NORCROSS VA A MANUFACTURER AND DISTRIBUTOR OF AGRICULTURAL EQUIPMENT MACHINERY AND REPLACEMENT PARTS UNDER AG AND CALIFORNIA WATER SERVICE CO SAN JOSE CALIF A PUBLIC WATER COMPANY UNDER CWT BOTH COMPANIES PREVIOUSLY TRADED OVERTHE COUNTER ALSO REGENCY HEALTH SERVICES INC NEWPORT BEACH CALIF A HEALTHCARE FACILITIES OPERATOR UNDER RHS FORMERLY TRADED ON THE AMERICAN STOCK EXCHANGE LEAR SEATING CORP SOUTHFIELD MICH A SUPPLIER OF AUTOMOBILE AND LIGHT TRUCK SEAT SYSTEMS UNDER LEA IS AN INITIAL OFFERING THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 13 NEW LISTINGS INCLUDING 12 INITIAL OFFERINGS THE NASDAQ ADDED THE FOLLOWING INITIAL OFFERINGS TO ITS NATIONAL MARKET SYSTEM LACROSSE FOOTWEAR INC LACROSSE WIS A PRODUCER OF FOOTWEAR BOOT BAY RIDGE BANCORP INC BROOKLYN NY FORMED TO ACQUIRE BAY RIDGE FEDERAL SAVINGS BANK BRBC WHOLESALE CELLULAR USA INC INDIANAPOLIS A DISTRIBUTOR OF CELLULAR TELEPHONES AND RELATED PRODUCTS CELL CERPLEX GROUP INC ANAHEIM CALIF A PROVIDER OF REPAIR SERVICES FOR ELECTRONIC EQUIPMENT CPLX HEMASURE INC MARLBOROUGH MASS A DEVELOPER OF SAFETY PRODUCTS FOR BLOOD TRANSFUSION AND DONATION PROCEDURES HMSR LFS BANCORP INC LEXINGTON KY A HOLDING COMPANY OF LEXINGTON FEDERAL SAVINGS BANK LFSB MTI TECHNOLOGY CORP ANAHEIM CALIF A MAKER OF STORAGE SYSTEMS FOR COMPUTER SYSTEMS MTIC PERMANENT BANCORP INC EVANSVILLE IND A HOLDING COMPANY OFFERING UP TO TWO MILLION SHARES OF ITS STOCK IN CONNECTION WITH THE CONVERSION OF PERMANENT FEDERAL SAVINGS BANK PERM BUGABOO CREEK STEAK HOUSE INC EAST PROVIDENCE RI A RESTAURANT OWNER AND OPERATOR RARE REDFED BANCORP INC REDLANDS CALIF A BANK HOLDING COMPANY REDF VIVUS INC ALSO RETIREMENT CARE ASSOCIATES INC ATLANTA A MANAGER OF RETIREMENT PERSONAL CARE AND NURSING FACILITIES RCRE A PREVIOUSLY TRADED STOCK WAS LISTED ON THE NASDAQ NATIONAL MARKET SYSTEM THE AMEX AND THE CHICAGO BOARD OPTIONS EXCHANGE WILL BEGIN TRADING OPTIONS ON ORBITAL SCIENCES CORP TODAY AMEX ALSO SAID IT WILL DELIST 11 EQUITY OPTIONS IN RESPONSE TO MEMBER FIRMS' CONCERNS OVER A PROLIFERATION OF NEW OPTIONS THE FOLLOWING SEVEN OPTIONS WERE DELISTED ALLEGHENY LUDLUM CORP CATELLUS DEVELOPMENT CORP DATASCOPE CORP GLENAYRE TECHNOLOGIES INC HERBALIFE INTERNATIONAL INC MERRYGOROUND ENTERPRISES INC AND XOMA CORP IN ADDITION AMEX SAID IT WILL NOT ADD NEW EXPIRATION MONTHS TO FOUR OTHER EQUITY OPTIONS CITIZENS UTILITY CO CXZ/101 AND CZZ/102 LIPOSOME TECHNOLOGY INC MYCOGEN CORP AND UTAH MEDICAL PRODUCTS INC THE CBOE BEGAN TRADING THE FOLLOWING OPTIONS CHRONIMED INC GOOD GUYS INC INTUIT CORP WALL DATA INC AND WATSON PHARMACEUTICALS INC THE PACIFIC STOCK EXCHANGE WILL BEGIN TRADING REAL GOODS TRADING CORP UKIAH CALIF AN ENERGY SYSTEMS AND CONSERVATION PRODUCTS RETAILER UNDER RGT P TODAY THE PSE ALSO SAID IT PLANS TO DELIST AERIAL ASSAULT INC PENDING APPROVAL BY THE SECURITIES AND EXCHANGE COMMISSION FOR FAILURE TO COMPLY WITH MINIMUM LISTING CRITERIA THE EXCHANGE SUSPENDED AERIAL'S COMMON STOCK AND WARRANTS FROM TRADING ON FEB 22 AGCO CORP IS BASED IN NORCROSS GA BASED ON INFORMATION PROVIDED BY THE NEW YORK STOCK EXCHANGE THE COMPANY'S LOCATION WAS MISSTATED IN YESTERDAY'S NEW STOCK LISTINGS COLUMN 9404110005 940411 LEGAL BEAT BLOWING SMOKE AROUND OTHERS MAY BE BATTERY BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL EXPOSING SOMEONE TO SECONDHAND CIGARETTE SMOKE CAN CONSTITUTE BATTERY THE SAME LEGAL DESCRIPTION APPLIED TO PUNCHING SOMEONE IN THE JAW THREE COURTS HAVE FOUND OVER THE PAST YEAR CIVIL COURT JUDGES IN CALIFORNIA GEORGIA AND OHIO HAVE AGREED THAT BATTERY WHICH USUALLY ENTAILS TOUCHING SOMEONE AGAINST HIS OR HER WILL CAN APPLY TO CIGARETTE CIGAR OR PIPE SMOKE PIPE SMOKE IS VISIBLE A GEORGIA STATE APPEALS COURT SAID IN ONE OF THE CASES IT IS DETECTABLE THROUGH THE SENSES AND MAY BE INGESTED OR INHALED IT IS CAPABLE OF TOUCHING OR MAKING CONTACT WITH ONE'S PERSON IN A NUMBER OF WAYS NOT EVERYONE WHO SMOKES AROUND OTHER PEOPLE CAN BE DEEMED AN ASSAILANT BUT A SMOKER WHO KNOWS THAT SOMEONE NEARBY IS ALLERGIC AND WHO CONTINUES TO SMOKE IN THAT PERSON'S PRESENCE IS A FAIR TARGET FOR A CIVIL SUIT LAWYERS SAY BATTERY CAN BE CHARGED AS A CRIMINAL OFFENSE OR AS IN THE SECONDHAND SMOKE CASES ALLEGED IN A CIVIL LAWSUIT FOR DAMAGES IN THE GEORGIA CASE BONNIE RICHARDSON A FORMER BANK RECEPTIONIST ALLEGED THAT A COLLEAGUE MALICIOUSLY DIRECTED PIPE SMOKE AT HER A CLAIM HE DISPUTES MS RICHARDSON SAID THE PIPE SMOKE SENT HER TO THE HOSPITAL TWICE FOR SEVERE HEADACHES NAUSEA AND WEIGHT LOSS THE STATE APPEALS COURT SAID HER LAWSUIT CAN CONTINUE AND THE BANK AND COWORKER HAVE APPEALED TO THE GEORGIA SUPREME COURT THEY ARGUE THAT WORKERS' COMPENSATION SHOULD GOVERN NORMALLY EMPLOYEES WHO GET SICK ON THE JOB CAN GET PAID ONLY THROUGH THE WORKERS' COMPENSATION SYSTEM IN WHICH RECOVERIES ARE LIMITED A BATTERY ALLEGATION LIFTS A CASE OUT OF WORKERS' COMP AND ALLOWS FOR BIGGER RECOVERIES POTENTIALLY YOU'VE GOT COMPENSATORY DAMAGES AND PUNITIVE DAMAGES THERE'S NO LIMIT SAYS LARRY A MINSKY A LONG BEACH CALIF ATTORNEY FOR A SMOKESENSITIVE WOMAN WHO RECENTLY FILED SUCH A CASE LAWSUITS OVER SECONDHAND SMOKE ARE NOT NEW BUT DEVELOPMENTS IN POLLUTION LAW AND PUBLIC OPINION ABOUT SMOKING HAVE HELPED MAKE SOME BATTERY CLAIMS POSSIBLE JUST AS LANDOWNERS CAN NOW TREAT SOME KINDS OF POLLUTION AS A TRESPASS PLAINTIFFS' LAWYERS SAY CIGARETTE SMOKE CAN BE BATTERY EVEN THOUGH NO PHYSICAL CONTACT OCCURRED AND PUBLIC OPINION ABOUT SMOKING HAS HAD AN EFFECT ON COURTS TOO IT WAS REGARDED AS GEE SOMETHING WE ALL PUT UP WITH SAYS GEORGE WASHINGTON UNIVERSITY LAW PROFESSOR JOHN F BANZHAF III WHO NOTED THAT SOME TYPES OF BATTERY CLAIMS REQUIRE THAT THE ASSAILANT ACTED IN A WAY THAT A REASONABLE PERSON WOULD FIND OFFENSIVE WHAT THESE CASES SAY IS THAT WHAT IS REGARDED AS OFFENSIVE IS CHANGING JUST AS IT IS IN SEXUAL HARASSMENT THE LITIGATION ALSO GAINED MOMENTUM AFTER AN ENVIRONMENTAL PROTECTION AGENCY REPORT LAST YEAR LINKING SECONDHAND SMOKE TO LUNG CANCER AND OTHER AILMENTS IN THEIR SUITS SMOKESENSITIVE EMPLOYEES ALSO FREQUENTLY ALLEGE THAT THEIR COMPANIES DID NOTHING TO HELP THEM EVEN AFTER REPEATED REQUESTS IN THE CASE RECENTLY HANDLED BY MR MINSKY THE CALIFORNIA ATTORNEY AN EMPLOYEE OF AN INSURANCEBROKERAGE FIRM ALLEGEDLY DEVELOPED DISABLING RESPIRATORY PROBLEMS BECAUSE OF THICK SMOKE AT WORK THE EMPLOYER HOGG ROBINSON INSURANCE BROKERS INC ALLEGEDLY IGNORED 13 COMPLAINTS BY THE WORKER AND FAILED TO ENFORCE A CORPORATE SMOKING POLICY A SPOKESWOMAN FOR THE COMPANY SAID IT BANNED SMOKING IN MANY AREAS AFTER THE WOMAN COMPLAINED GAVE HER A SMOKEFREE OFFICE WITH A SPECIAL FILTER AND EVEN OFFERED HER WORK IN A SMOKEFREE BUILDING THE CASE WAS SETTLED LAST MONTH FOR AN UNDISCLOSED AMOUNT ANDY FURMAN A CINCINNATI SPORTSRADIO HOST WAS SUED FOR BATTERY BY AN ANTISMOKING ADVOCATE WHO VISITED HIS STATION DURING THE GREAT AMERICAN SMOKEOUT IN 1991 THE ACTIVIST WAS APPEARING ON ANOTHER PROGRAM WHEN MR FURMAN WHO WAS IN THE STUDIO BLEW CIGAR SMOKE IN THE GUEST'S FACE CAUSING PHYSICAL DISCOMFORT HUMILIATION AND DISTRESS ACCORDING TO THE LAWSUIT THE GUEST AHRON LEICHTMAN EXECUTIVE DIRECTOR OF SAN FRANCISCOBASED CITIZENS FOR A TOBACCOFREE SOCIETY SAID HE WOKE UP THE NEXT DAY WITH A CORNEAL ABRASION AND COULDN'T PUT IN HIS CONTACT LENSES MR FURMAN WHO RESPONDED TO THE LAWSUIT BY SENDING A BOX OF CIGARS TO MR LEICHTMAN'S ATTORNEY SAID HE DID BLOW THE SMOKE BUT IT WAS SCHTICK HE KNEW ME MR FURMAN SAID I MEAN I DO STUFF LIKE THAT ON THE AIR I WOULD NEVER DO IT TO A STRANGER THE RADIO STATION WLW ALSO WAS SUED AND A STATE APPEALS COURT IN JANUARY REVERSED A TRIALCOURT JUDGE WHO HAD DISMISSED THE CASE THE APPEALS COURT HOWEVER SAID THERE COULD BE NO LIABILITY IN SUCH A CASE UNLESS THE SMOKER DELIBERATELY AIMED THE SMOKE AT ANOTHER PERSON MR FURMAN AND MR LEICHTMAN SAY THEY ARE NEGOTIATING A SETTLEMENT THE RECENT RULINGS ASTONISH SOME SMOKERS AND EMPLOYERS I RESPECT PEOPLE AND THEIR RIGHTS BUT SOMETIMES PEOPLE HAVE TO HAVE A LIFE SAYS MR FURMAN THE SPORTSRADIO HOST AND WALKER MERRYMAN VICE PRESIDENT OF THE TOBACCO INSTITUTE AN INDUSTRY LOBBYING GROUP IN WASHINGTON SAYS THESE KINDS OF INTERPERSONAL DISPUTES SIMPLY DON'T BELONG IN A COURT SYSTEM THAT IS AS OVERBURDENED AS THE AMERICAN JUDICIAL SYSTEM IS ATTORNEYS FOR SMOKERS ALSO ARGUE THAT THEIR CLIENTS DIDN'T INTEND THE SMOKE TO TOUCH OTHER PEOPLE AND INTENT IS A LEGAL COMPONENT OF ASSAULT AND BATTERY AN ILLINOIS APPEALS COURT AGREED WITH THAT REASONING IN OCTOBER BUT EVEN THAT COURT SUGGESTED THAT SECONDHAND SMOKE COULD UNDER SOME CIRCUMSTANCES CONSTITUTE BATTERY 9404110004 940411 MARKETING & MEDIA ADVERTISING SURVEY ADDRESSES A '90S QUESTION WHAT WILL GET A GREEN' AD READ BY KEVIN GOLDMAN GREEN ADVERTISING CAMPAIGNS MAY BE POLITICALLY CORRECT BUT THEY AREN'T ALWAYS FRUITFUL MANY BIG ADVERTISERS RANGING FROM REVLON TO ANHEUSERBUSCH TO PROCTER & GAMBLE HAVE BEEN CAPITALIZING ON THE ENVIRONMENT EVEN IF IT DOESN'T HAVE QUITE THE CACHET OF A FEW YEARS AGO WHEN TIME NAMED EARTH AS PLANET OF THE YEAR SUBSTITUTING FOR ITS MAN OF THE YEAR HONOR YET COMPANIES SOMETIMES BADLY MISFIRE FAILING TO BREAK THROUGH THE CLUTTER OF PRINT ADS AND MISSING AN OPPORTUNITY TO HOOK CONSUMERS THAT IS THE CONCLUSION OF A TWOYEAR STUDY OF ADS WITH ENVIRONMENTAL THEMES BY ROPER STARCH WORLDWIDE A MARKETRESEARCH COMPANY IN MAMARONECK NY THE SURVEY OF 22516 READERS EXAMINED MORE THAN 300 GREEN ADS THAT APPEARED IN 186 MAGAZINES SINCE 1991 ROPER STARCH SAYS IT IS THE FIRST STUDY OF ADS FEATURING THE ENVIRONMENT AS A SELLING TOOL THE SURVEY RESULTS PROVIDE A TEXTBOOK LESSON ABOUT THE DANGER OF SIMPLY JUMPING ONTO A TRENDY ISSUE THE CLIENT SHOULD NEVER FORGET ONE OF THE FUNDAMENTAL RULES OF ADVERTISING EMPHASIZE THE WHAT'S IN IT FOR ME FACTOR ACCORDING TO ROPER STARCH TOO MANY GREEN ADS FAILED TO MAKE THE CONNECTION BETWEEN WHAT THE COMPANY IS DOING FOR THE ENVIRONMENT AND HOW IT AFFECTS INDIVIDUAL CONSUMERS FOR EXAMPLE AN AD FOR BUDWEISER SIMPLY SHOWED A PICTURE OF A CAN OF THE BREW YOU WON'T BELIEVE WHAT THIS CAN CAN DO READ THE HEADLINE THE TEXT GOES INTO DETAIL ABOUT RECYCLING THAT APPROACH MAY BE NOBLE BUT IT FAILED TO IMPRESS THE ROPER SURVEY RESPONDENTS ANYONE CAN SEE A BUDWEISER CAN ON THEIR SHELF AT HOME SAYS PHILIP W SAWYER EDITOR OF THE STARCH TESTED COPY NEWSLETTER AND THE AD IS ABOUT THE VALUES OF RECYCLING WHAT DOES THAT MEAN TO THE AVERAGE PERSON WILL IT MAKE BUDWEISER CHEAPER TO BUY THAT'S WHAT THE CONSUMER WANTS TO KNOW FORD MOTOR STUMBLED WITH AN AD DECLARING ENVIRONMENTAL RESPONSIBILITY FUELS OUR RESEARCH THE AD SAYS FORD VEHICLES MEET CALIFORNIA'S STRICT EMISSION STANDARDS SCHEDULED TO GO INTO EFFECT IN THE LATE 1990S THE AD ALSO MENTIONS ELECTRIC CARS AGAIN MR SAWYER SAYS THE AD FAILED TO MAKE A CONNECTION WITH THE READERS IN THE SURVEY IT IS ALL ABOUT FORD AND NOT ABOUT YOU HE SAYS WHAT DO I GET OUT OF ALL OF THIS NOTHING SUBSTANTIVE SO WHAT APPROACH DOES WORK MR SAWYER SAYS REVLON PERFORMED WELL WITH AN AD FOR ITS NEW AGE NATURALS CREAMS THE AD BEGINS WE BELIEVE IN THE GOODNESS NATURE PROVIDES WE BRING YOU NO HYPE NO OUTRAGEOUS CLAIMS NONANIMALTESTED FORMULAS IN RECYCLABLE CONTAINERS THE AD GOES ON TO SAY THAT USING THE PRODUCT WILL RESULT IN HEALTHIER SKIN THAT'S A BENEFIT HE SAYS THE AD IS ALSO VISUALLY APPEALING WITH LARGE READABLE TEXT AND A SMALL PHOTOGRAPH OF AN ATTRACTIVE WOMAN THE SLOGAN ALSO HITS HOME BECAUSE WE BELIEVE WHAT IS GOOD FOR THE EARTH IS GOOD FOR ALL OF US ANOTHER AD THAT WAS CONSIDERED EFFECTIVE CAME FROM SAMSUNG GROUP THE AD SHOWS A MAJESTIC SCENE OF A SNOWCOVERED MOUNTAIN REGION WITH A CALM OCEAN IN THE FOREGROUND ALL THAT IS VISIBLE IN THE OCEAN IS THE TIP OF A WHALE'S TAIL IN BRIEF WELLWRITTEN COPY THE AD ADDRESSES A NEW TYPE OF SUPERTANKER PRODUCED BY THE COMPANY THAT THE COMPANY SAYS PREVENTS OIL SPILLS THE USE OF THE ENVIRONMENT IS ALSO SMART STRATEGY WHEN IT COMES TO ADVERTISING CATEGORIES THAT ROPER STARCH DESCRIBES AS LOW INTEREST FOR INSTANCE AMERICAN INTERNATIONAL GROUP AN INSURANCE AND FINANCIALSERVICES COMPANY PRODUCED A TWOPAGE AD THAT IS DECIDEDLY NOT SEXY THE HEADLINE AMERICA NEEDS A NEW SYSTEM TO ACHIEVE FAST AND EFFECTIVE CLEANUP OF OUR ENVIRONMENT THE BLACKANDWHITE PHOTOGRAPHY IS A BLEAK LANDSCAPE OF BARE TREES AND A STILL LAKE WITH A DANGER NO TRESPASSING SIGN POSTED THE AD IS UNUSUAL IN THAT IT IS VIRTUALLY SOLID TEXT A 15PARAGRAPH REPORT ON THE ENVIRONMENT PERHAPS SURPRISINGLY MANY INDIVIDUALS BROWSING THROUGH MAGAZINES ACTUALLY STOPPED AND READ THE COPY THE HEADLINE CONVINCES PEOPLE THAT WHAT FOLLOWS IS WORTH READING SAYS MR SAWYER A SPOKESMAN FOR AIG IN NEW YORK SAYS THE COMPANY CONSIDERED IT A NORISK SITUATION TO LOAD THE AD WITH WORDS IF THE SUBJECT MATTER IS A HOT TOPIC THERE IS NO REASON THE COPY HAS TO BE SHORT THE SPOKESMAN SAYS ONE AD FOR AN INDUSTRIAL COMPANY ASEA BROWN BOVERI FAILED EVEN THOUGH IT HAD A STRIKING IMAGE AND EASYTOREAD COPY THE AD SHOWS A FARMHOUSE IN A FIELD OF WHEAT WHEN KANSAS POWER AND LIGHT WANTED TO MAKE SURE THE GREAT PLAINS STAYED GREAT WHO DID THEY TURN TO MR SAWYER SAYS READERS DIDN'T UNDERSTAND THAT IT MEANT TO MAKE THE GREAT PLAINS GREAT WHAT'S MORE SOMETHING ELSE IN THE AD WAS BOTHERSOME SAYS MR SAWYER NEAR THE FARMHOUSE ARE TWO INDIVIDUALS SKULKING AROUND IT REMINDS MR SAWYER OF THE FILM IN COLD BLOOD BASED ON THE TRUMAN CAPOTE BOOK ABOUT THE REALLIFE MURDER OF A KANSAS FARMER AND HIS FAMILY BY TWO ROBBERS FOR THOSE ADVERTISERS WANTING TO CLIMB ONTO THE ENVIRONMENTAL BANDWAGON MR SAWYER OFFERS THIS ADVICE BE SPECIFIC ABOUT THE PRODUCT'S BENEFITS IN TERMS OF THE CONSUMER AND NOT SOCIETY IN GENERAL AND EXPLOIT THE INHERENT VISUAL POWER IN ENVIRONMENTALISM APPEAL TO A PERSON'S EGO SAYS MR SAWYER DON'T AIM AIDS TO SAVE THE PLANET MOST PEOPLE WOULD RATHER SAVE THEMSELVES PERDUE FARMS WHOSE FORMER CHAIRMAN FRANK PERDUE HAS BEEN TOUTING THE SALISBURY MD COMPANY'S CHICKENS IN COMMERCIALS FOR 23 YEARS IS INTRODUCING HIS SON AS A NEW CORPORATE SPOKESMAN IN A SPOT CURRENTLY AIRING IN RICHMOND VA AND ALBANY NY FRANK PERDUE INTRODUCES HIS SON JIM PERDUE TO THE PUBLIC JIM PERDUE HAS BEEN CHAIRMAN AT PERDUE FOR ALMOST THREE YEARS FRANK PERDUE IS CHAIRMAN OF THE BOARD'S EXECUTIVE COMMITTEE IN THE SPOT CREATED BY INTERPUBLIC GROUP'S LOWE & PARTNERS/SMS FRANK PERDUE WONDERS WHETHER HIS COMPETITORS THINK EVENTUALLY I'LL JUST RETIRE HE USHERS IN HIS SON SAYING HE MAY BE EVEN TOUGHER THAN I AM IT IS JIM NOT FRANK WHO DELIVERS THE BRAND'S MONEYBACK GUARANTEE THE SPOT ENDS WITH JIM GOING BACK TO WORK AND FRANK SAYING I THINK I'LL TAKE A TRIP DOWN TO THE CARIBBEAN EVEN SO A PERDUE SPOKESMAN SAID THE SPOT DOESN'T MARK THE END OF FRANK PERDUE'S CAREER AS A SPOKESMAN IT ISN'T A SIGNAL THAT FRANK IS GOING TO STOP BEING IN THE COMMERCIALS ACCOUNTS KIRSHENBAUM & BOND NEW YORK PREVAILED IN THE REVIEW FOR KEDS CORP'S ADVERTISING ACCOUNT PREVIOUSLY AT LEONARD MONAHAN LUBARS & KELLY OF PROVIDENCE RI BILLINGS IN 1993 WERE 12 MILLION IN 1993 ACCORDING TO COMPETITIVE MEDIA REPORTING GENOVA HARTWICK JULIANO OF GREENWICH CONN WON THE FILIPPO BERIO OLIVEOIL ACCOUNT PREVIOUSLY AT ISIDORE & PAULSON NEW YORK BILLINGS COULDN'T BE DETERMINED DIGITAL DIGITAL EQUIPMENT CORP THE MAYNARD MASS COMPUTER MAKER SAID IT HAS FORMALLY BEGUN A REVIEW OF ITS ESTIMATED 30 MILLION ACCOUNT INCUMBENTS ARE ARNOLD FORTUNA LAWNER & CABOT BOSTON CIOCIOLA & CO NEW YORK HOLLAND MARK MARTIN BURLINGTON MASS KETCHUM ADVERTISING A UNIT OF KETCHUM COMMUNICATIONS OF PITTSBURGH AND MULLEN ADVERTISING WENHAM MASS THE PERSONALCOMPUTER PORTION OF DEC'S ADVERTISING RECENTLY AWARDED TO YOUNG & RUBICAM WON'T BE REVIEWED THE COMPANY SAID WHO'S NEWS JIM TENNANT PRESIDENT OF FCB DIRECT FOOTE CONE & BELDING COMMUNICATIONS' DIRECTMARKETING UNIT IS LEAVING TO TAKE THE POST OF CHAIRMAN AND CHIEF EXEUTIVE AT SELFIX INC A CHICAGO HOUSEWARES COMPANY JIM CERASNI A 50YEAROLD SENIOR VICE PRESIDENT AT FOOTE CONE SUCCEEDS MR TENNANT AGE 40 9404110003 940411 BUSINESS BRIEF GENERAL HOST CORP LAWN PRODUCT RETAILER POSTS FISCAL FOURTHQUARTER LOSS GENERAL HOST CORP REPORTED A NET LOSS FOR THE FISCAL FOURTH QUARTER DUE TO A CHARGE FROM THE CLOSING OF UNPROFITABLE STORES AND THE WRITEDOWN OF AN INVESTMENT FOR THE QUARTER ENDED JAN 30 THE STAMFORD CONN SPECIALTY RETAILER OF LAWN AND GARDEN PRODUCTS CRAFTS AND CHRISTMAS MERCHANDISE REPORTED A NET LOSS OF 427 MILLION OR 203 A SHARE COMPARED WITH NET INCOME OF 258000 OR ONE CENT A SHARE A YEAR EARLIER THE RECENT QUARTER INCLUDED A CHARGE OF 229 MILLION FOR STORE CLOSINGS AND OTHER COSTS AND A 157 MILLION LOSS ON THE COMPANY'S INVESTMENT IN SUNBELT NURSERY GROUP INC SALES ROSE 1 TO 1663 MILLION FROM 1647 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING GENERAL HOST SHARES FELL 12 CENTS TO 637 9404110002 940411 LETTERS TO THE EDITOR TAX RATES ON TRUSTS YOUR ARTICLE THERE'S STILL SOME TIME TO TAKE ACTION IF YOU WANT TO SAVE ON TRUST TAXES MONEY & INVESTING FEB 24 FAILED TO SPECIFY IRREVOCABLE WHEN REFERRING TO TRUST AND TRUST TAXES THE 1993 OMNIBUS BUDGET RECONCILIATION ACT INCREASED THE RATE AT WHICH AN IRREVOCABLE TRUST PAYS INCOME TAX TO 396 ON EARNINGS ABOVE 7501 BUT A REVOCABLE/LIVING/GRANTOR TRUST BY FAR THE MOST COMMON TYPE IN ESTATE PLANNING IS TAXED AT THE SAME TAX RATE THE INDIVIDUAL SETTING UP THE TRUST IS TAXED A REVOCABLE TRUST IS INVISIBLE TO THE INTERNAL REVENUE SERVICE 9404110001 940411 INTERNATIONAL ISRAEL WILL GRANT MORE WORK PERMITS FOR FOREIGNERS TO REPLACE PALESTINIANS BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL TEL AVIV IN A BREAK WITH PREVIOUS POLICY THE ISRAELI CABINET AGREED TO GRANT MORE THAN 18000 WORK PERMITS TO FOREIGN LABORERS IN AN EFFORT TO REPLACE PALESTINIANS FROM THE WEST BANK AND GAZA STRIP WHO ARE NOW BARRED FROM ENTERING ISRAEL TO GO TO WORK THE DECISION COMES IN THE WAKE OF A SUICIDE CARBOMB ATTACK BY A PALESTINIAN THAT KILLED SEVEN ISRAELIS AND INJURED MORE THAN 50 OTHERS AS THEY WAITED TO BOARD A BUS IN THE ISRAELI CITY OF AFULA THE ISLAMIC FUNDAMENTALIST HAMAS GROUP WHICH TOOK RESPONSIBILITY FOR THE ATTACK HAS THREATENED TO LAUNCH FIVE MORE CARBOMB ATTACKS BEFORE ISRAEL'S INDEPENDENCE DAY LATER THIS WEEK THERE ARE CURRENTLY 6000 FOREIGN LABORERS WORKING IN ISRAEL MAINLY FROM THAILAND TURKEY ROMANIA AND OTHER EASTERN EUROPEAN COUNTRIES ANOTHER 7000 RECEIVED WORK PERMITS LAST MONTH BUT HAVEN'T YET ARRIVED YESTERDAY'S CABINET DECISION WILL BRING THE NUMBER OF FOREIGN WORKERS IN ISRAEL TO MORE THAN 30000 THE ISRAELI GOVERNMENT HAS NEVER BEFORE PERMITTED SUCH A LARGE NUMBER OF FOREIGN LABORERS TO WORK IN ISRAEL LAST YEAR WHEN THE CABINET IMPOSED AN EXTENDED CLOSURE OF THE OCCUPIED TERRITORIES TO CONTROL ESCALATING VIOLENCE LABOR MINISTER ORA NAMIR REJECTED THE IDEA OF HIRING FOREIGN WORKERS TO REPLACE PALESTINIANS SHE AND OTHER CABINET MINISTERS CITED THE ZIONIST IDEAL OF HEBREW WORK THE NOTION THAT JEWISH HANDS SHOULD PERFORM NEEDED PHYSICAL TASKS AND ARGUED THAT WORKERS SHOULD COME FROM AMONG THE UNEMPLOYED IN AN INTERVIEW WITH ISRAELI TELEVISION SHE ACKNOWLEDGED THAT WHILE HER IDEOLOGICAL VIEWS HAVEN'T CHANGED GOVERNMENT EFFORTS TO RECRUIT ISRAELI WORKERS INTO CONSTRUCTION AND AGRICULTURE THE TWO SECTORS OF THE ECONOMY THAT STILL RELY HEAVILY ON MANUAL LABOR AND TOGETHER EMPLOY CLOSE TO 80 OF ALL PALESTINIAN WORKERS IN ISRAEL HAD LARGELY FAILED ACCORDING TO MINISTRY OF LABOR STATISTICS DESPITE A GOVERNMENT POLICY OF OFFERING SALARIES ABOVE THE MINIMUM WAGE IN ORDER TO ATTRACT AGRICULTURAL WORKERS OF THE 107000 ISRAELIS LOOKING FOR WORK ONLY 1400 WERE WILLING TO PICK CROPS ALMOST THE SAME NUMBER REFUSED TO TAKE AGRICULTURAL JOBS EVEN THOUGH THE REFUSAL MEANT LOSING THEIR UNEMPLOYMENT BENEFITS THE LABOR SITUATION HIGHLIGHTS A DILEMMA FOR BOTH ISRAELI AND PALESTINIAN LEADERS DURING THE PERIOD OF PALESTINIAN SELFRULE THAT BEGINS AFTER ISRAEL'S SCHEDULED WITHDRAWAL FROM THE WEST BANK CITY OF JERICHO AND THE GAZA STRIP THIS WEEK PALESTINIAN ECONOMISTS SAY THAT THE PEACE AGREEMENT CAN'T SURVIVE IF PALESTINIANS ARE BARRED FROM WORKING IN ISRAEL BECAUSE THE PALESTINIAN ECONOMY IS SO FRAGILE YET ISRAELI PUBLIC SUPPORT FOR THE PEACE AGREEMENT PLUMMETS EVERY TIME THERE IS A TERRORIST ATTACK ALREADY SEVERAL ISRAELI CITIES HAVE TAKEN STEPS TO BAR PALESTINIAN LABORERS MUHAMMAD SHTAYYEH A MEMBER OF THE PALESTINIAN DELEGATION TO THE ECONOMIC TALKS AND AN ECONOMICS PROFESSOR AT BIR ZEIT UNIVERSITY IN RAMALLAH SAYS THE CLOSURE OF THE WEST BANK AND GAZA AND THE HARSH ECONOMIC CONSEQUENCES PALESTINIAN RESIDENTS ARE SUFFERING BENEFITS ONLY RADICAL GROUPS THAT OPPOSE THE PEACE PROCESS THE PERSON WHO DID THE OPERATION IN AFULA WAS NOT A WORKER IN ISRAEL HE WAS A 19YEAROLD WITHOUT A JOB OR MONEY OR HOPE SAYS MR SHTAYYEH ISRAEL IS MAKING A MISTAKE THESE KINDS OF MEASURES CAUSE ANGER TO ACCUMULATE AND ISRAEL WILL FACE THE CONSEQUENCES ISRAELI EFFORTS TO CREATE JOBS INSIDE THE WEST BANK AND GAZA HAVE PROVED TO BE OF ONLY LIMITED HELP UNEMPLOYMENT IS RUNNING AT 54 PALESTINIAN ECONOMISTS SAY YEHUDA GOREN VICE PRESIDENT OF THE ASSOCIATION OF CONTRACTORS & BUILDERS IN ISRAEL SAYS THAT DESPITE THE UNPRECEDENTED LEVELS OF FOREIGN WORKERS COMING TO ISRAEL HIS INDUSTRY STILL NEEDS AT LEAST 60000 MORE WORKERS TO KEEP UP WITH PRESENT DEMANDS WHILE 30000 ISRAELIS HAVE ENTERED THE CONSTRUCTION INDUSTRY IN THE PAST 2 1/2 YEARS THANKS TO RECRUITING DRIVES MR GOREN SAYS THE NUMBER OF POTENTIAL NEW ISRAELI WORKERS HAS ALREADY BEEN TAPPED 9404110082 940325 SCHOOL FOR SCANDAL BY MARK HELPRIN NOW THAT THE BLOOM IS OFF THE ROSE THE WHITE HOUSE ORACLES ARE THUMPING THEIR NAKED TAILS IN UNISON TO PROTEST THAT WHITEWATER IS POLITICAL SURELY THEY DESERVE THE NOBEL PRIZE FOR THE DISCOVERY THAT POLITICAL SCANDALS HAVE A POLITICAL COMPONENT AND IF THEY CONTINUE THEIR RESEARCHES PERHAPS THEY WILL ALSO LEARN THAT THE MEASURE OF A SCANDAL IS NOT THE MATERIAL OF SCANDAL ITSELF BUT THE POLITICAL DYNAMIC OF WHICH THE UNFOLDING SCENARIO IS BUT AN EXPRESSION THOUGH LIBERALS HALLUCINATE MUCH ABOUT WATERGATE RICHARD NIXON WAS FORCED TO RESIGN BECAUSE HE WAS THE FIRST AMERICAN PRESIDENT TO LOSE A WAR THE REST WAS MERELY THE INSTRUMENT OF THE UNDERLYING FORCES A SHADOW PLAY BY THE SAME TOKEN IRANCONTRA WAS A RESULT OF THE COMPLETE ISOLATION OF REPUBLICAN POLITICAL FORTUNES IN THE EXECUTIVE AN ISLAND IN A TIDE OF DEMOCRATIC POWER THAT THREATENED TO WASH OVER IT THE CORRUPTIONS OF WHITEWATER ARE LIKE THE FRUIT OF A RICHLY BEARING TREE AND IT SEEMS THAT EVERY DAY A NEW DEAD HAND RISES FROM A MISTY ARKANSAS LAKE BUT THEY ARE NOT THE TRUE MEASURE OF WHITEWATER WHITEWATER FLOURISHES ONLY BECAUSE THE CLINTON ADMINISTRATION IS CONDEMNED TO REST IN A POLITICALLY SHORTSHEETED BED OF ITS OWN MAKING WHAT A BAD IDEA TO BEGIN A MESSIANIC PRESIDENCY WITH ONLY 43 OF THE POPULAR VOTE LESS THAN POLLED BY WILLKIE DEWEY STEVENSON NIXON FORD AND DUKAKIS WHEN THEY LOST AND OF THAT 43 MANY WERE UNAWARE OF HILLARY HIDING IN THE BUSHES TO THE LEFT OF THE CANDIDATE LIKE THE 900POUND BOYFRIEND OF A VOLUPTUOUS GIRL HITCHHIKER AS SOON AS HILLARY GOT INTO THE CAR SHE BUMPED OUT ALL BUT THE PRESIDENT'S CORE CONSTITUENCY THE 25 TO 30 WHO WILL BE WITH HIM TO THE END YOU WOULD THINK THAT WITH SUCH A NARROW BASE THE WHITE HOUSE HILLARYS HIGHLY INEXPERIENCED LEFTLIBERAL ACADEMIC RIGHTEOUS YUPPIES WOULD HAVE TRODDEN CAREFULLY BUT THEY DID NOT FOR THEIR ABIDING FAITH IN THE POWER OF THEIR OWN INTELLIGENCE TO MANAGE THE UNMANAGEABLE AMOUNTS TO NOTHING MORE THAN ABJECT STUPIDITY AND THEY ACTED ACCORDINGLY NO PRESIDENT IN LIVING MEMORY HAS EXULTED IN HIS VICTORY WITH THE SAME IMMODESTY THE IMMEDIATE PUNISHMENT FOR THIS BEING THAT THE EARLY CLINTON ADMINISTRATION CAME TO RESEMBLE A SCIENCE FICTION CHARACTER WHO AGES 50 YEARS IN LESS THAN A MINUTE THEY WERE BLINDED TO THEIR LIMITATIONS BY THE SLAVISH OBEDIENCE OF A PRESS THAT TEMPTING THE FATES PORTRAYED THE CLINTONS AS SAVIORS SAINTS AND DIVINE BEINGS LITERALLY WITH ANGELS' WINGS AND THOUGH FLACKERY IS JUST A RUBBER BAND THE MORE YOU STRETCH IT OUT THE HARDER IT SNAPS BACK IT DID THE IMPOSSIBLE IT QUINTUPLED THE ARROGANCE OF THE MOST ARROGANT PEOPLE IN AMERICA A TRIUMPHALIST COTERIE OF GRADUATE STUDENTS WHO ACCORD TO THE HARD LEFT THE SAME UNEASY RESPECT THAT MOST PEOPLE RESERVE FOR THE CLERGY AND GROW TEARYEYED OVER BATS SQUIRRELS AND CARIBOU AS WITH BARELY CONCEALABLE PLEASURE THEY SACRIFICE WHOLE REGIONS OF REDNECKS THIS IS NOT MERELY THE ARROGANCE OF VICTORY AND OF YOUTH BUT OF LAWYERS LAWYERS LIKE UNDERTAKERS MEDDLE DECISIVELY IN EVERYONE'S BUSINESS BUT ONLY AFTER IT FAILS MOST ARE REDEEMED BY UNDERSTANDING THAT THEIR POWER COMES FROM THIS PECULIAR CIRCUMSTANCE BUT CLINTILLIANS SEEM TO THINK IT COMES FROM A CHRISTLIKE GLOW WITHIN THEMSELVES IS IT SURPRISING THAT THEY BELIEVE THEIR FIRST TASK IS TO HEAL THE SICK AND THAT TO DO SO THEY NEED ONLY REDESIGN THE COUNTRY AFTER THEY HAVE GIVEN IT MEANING BANISHED ITS GREED AND PUT IT ON THE INFORMATION SUPERHIGHWAY TO LAPTOP HEAVEN THEY ARE THE MISSIONARIES AND WE ARE THE HOTTENTOTS NOT EVERYONE IN THIS GROUP IS AS CALLOW AS THE PRESIDENT'S MEDIA DIRECTOR WHO TOLD THE JOURNAL LAST YEAR OF HIS PLANS FOR BCTV' BILL CLINTON ON TV 24 HOURS A DAY AND NOT EVERYONE IS A NETWORKED CRONY OR A TOKEN ZOE OR A CHICKEN TYCOON ALL PUT IN PLACE IF NOT YET CONFIRMED IN THE MOST INCOMPETENT EXPLOSION OF PATRONAGE SINCE CALIGULA APPOINTED HIS HORSE FOR AT LEAST HALF A DOZEN GROWNUPS HAVE AGREED TO HELP BILL CLINTON MOSTLY EMINENT RETREADS WHO IN THEIR DAYS OF GLORY WERE CARTER'S LITTLE LIVER PILLS AND WHO EVEN NOW AFTER ALL THESE YEARS STILL MOVE ABOUT ON LITTLE MARSHMALLOW FEET LES ASPIN IMPOTENT EVEN AT HIS OWN SPECIALTY OF GUTTING THE MILITARY WARREN CHRISTOPHER BREAKING INTO EVERY FOREIGN GARDEN AND RUNNING AWAY WHEN THE DOG BARKS DAVID GERGEN HAND WELDED TO THE EJECTION LEVER DONNA SHALALA PRAYING THAT AT THE NEXT STATE DINNER SHE WON'T BE SEATED NEXT TO GEORGE HAMILTON LLOYD CUTLER HAPPY BUT WORRIED AS IF NEIL DIAMOND HAD BEEN ASKED TO CONDUCT THE BERLIN PHILHARMONIC EVEN THE GROWNUPS CANNOT SAVE BILL CLINTON FROM HIMSELF IF ONLY BECAUSE THEY CANNOT HAVE ANY IDEA OF HOW TO CARRY THE QUICKSILVER FROM THE FLAMES GRANTED IN QUESTIONS OF SINCERITY THE PRESIDENT IS PERPETUALLY CONDEMNED TO BE UPSTAGED BY HIS VICE PRESIDENT THOUGH FOR THE COUNTRY'S SAKE LET US HOPE THAT AL GORE IS NOT AS SINCERE AS HE APPEARS TO BE FOR WITH SINCERITY LIKE HIS WHO NEEDS FRAUD FRAUD IS WHAT WHITEWATER AND THE ADMINISTRATION ARE ALL ABOUT FRAUD PIOUS TAWDRY FINANCIAL SEXUAL POLITICAL PLAIN SIMPLE AND HABITUAL FRAUD SOMEWHERE BETWEEN THE CORE OF THE LEFT AND THE 43 PLURALITY THAT MADE BILL CLINTON COMMANDER IN CHIEF ARE THE AMERICAN VOTERS WHO THOUGHT THEY WERE SUPPORTING A NEW DEMOCRAT AND WOUND UP INSTEAD WITH A SLIGHTLY MORE BUTTONEDUP VERSION OF THE VILLAGE PEOPLE BORIS YELTSIN WHO OUGHT TO KNOW WHEREOF HE SPEAKS CALLS BILL CLINTON A SOCIALIST AND GENERAL JARUZELSKI THE FORMER MILITARY DICTATOR OF POLAND LOOKING MORE THAN EVER LIKE ONE OF THE THREE BLIND MICE SAYS THAT HE STILL RETAINS THE VALUES OF THE LEFT AND THAT ACTUALLY IN CLINTON'S PROGRAM I SEE ELEMENTS I LIKE A LOT FRAUD THOMAS MANN OF THE BROOKINGS INSTITUTION STATES THAT WE WOULD BE CONDEMNING HIM IF HE DIDN'T PULL BACK FROM HIS CAMPAIGN PROMISES BECAUSE HE WOULD BE AN IRRESPONSIBLE PRESIDENT THAT IS THE PRESIDENT HAD TO LIE TO YOU FOR YOUR OWN GOOD THE PRESIDENT LIES RESPONSIBLY NOT ONLY DOES HE REMAIN MORALLY SUPERIOR WHEN HE LIES HIS LYING ACTUALLY MAKES HIM MORALLY SUPERIOR THIS GOES BEYOND THE NORMAL CORRUPTIONS OF AMERICAN POLITICS ONTO THE AIRLESS AND UNFAMILIAR PLAINS OF TOTALITARIANISM FRAUD IN A WONDERFUL REVERSAL OF BOSS TWEED'S IMMENSE PUBLIC OUTLAYS FOR BROOMS ETC THE PRESIDENT TELLS THE NEW YORK TIMES THAT HE DOES NOT WANT A CONGRESSIONAL INQUIRY INTO WHITEWATER BECAUSE IT WOULD NOT BE WORTH THE MONEY IT WOULD COST HE DOESN'T WANT A CONGRESSIONAL INQUIRY INTO WHITEWATER BECAUSE HE WANTS TO SAVE MONEY DOES THE PRESIDENT THINK HE LEADS A NATION OF IDIOTS THE ANSWER IS YES BUT HE IS JUST CAUTIOUS ENOUGH TO SPEAK INDIRECTLY WHEN OF HIS WIFE HE SAYS IF THE REST OF THE PEOPLE IN THIS COUNTRY IF EVERYBODY IN THIS COUNTRY HAD A CHARACTER AS STRONG AS HERS WE WOULDN'T HAVE HALF THE PROBLEMS WE'VE GOT TODAY THESE ARE NOT THE WORDS OF LOUIS XVI JUAN PERON OR NICOLAE CEAUSESCU BUT OF THE PRESIDENT OF THE UNITED STATES DEFENDING HIS OVERBEARING WIFE BY INSULTING THE REST OF THE COUNTRY HAD A REPUBLICAN PRESIDENT SAID THIS HE WOULD HAVE BEEN PUT IN THE ICE CREAM CASE WITHIN MINUTES NOR HAS ANY PRESIDENT OF SOUND MIND AND BODY EVER HAD THE TEMERITY TO INSTALL THE FIRST LADY IN A VIRTUAL COPRESIDENCY IN WHICH SHE STALKS ABOUT THE COUNTRY GIVING SPEECHES APPEARS BEFORE CONGRESS SUPERVISES AT LEAST ONE CABINET DEPARTMENT AND IS THE CHIEF OF HIS HER ADMINISTRATION'S MOST AMBITIOUS INITIATIVE THOUGH IN WHITEWATER MODE IT IS TO THE CLINTONS' ADVANTAGE TO DISMISS THIS WITH OFFENDED INNOCENCE THEY AND THEIR SUPPORTERS HAVE BEEN TRUMPETING IT FOR MORE THAN A YEAR THE PRESIDENT HAS REINVENTED GOVERNMENT AND THE UNITED STATES OF AMERICA NOW HAS NOT ONE CHIEF EXECUTIVE BUT ONE AND A HALF THIS RATHER PROFOUND CHANGE IS NOT THE RESULT OF A CONSTITUTIONAL AMENDMENT OR EVEN INFORMED DEBATE IT JUST HAPPENED IT HAS EMBARRASSED CONGRESS AND ESCAPED THE CONDEMNATION OF AN ANESTHETIZED PRESS IT IS THE SOLID AND IDENTIFIABLE CORE OF AN OTHERWISE MERCURIAL CLOUD OF HUBRIS ARROGANCE AND PETTY CORRUPTION IT IS THE ULTIMATE EXPRESSION OF THE NATURE OF THIS PRESIDENCY IN WHICH THE RULES EXIST ONLY FOR EVERYONE ELSE BECAUSE THE WORK OF THE ELECT IN REMAKING THE WORLD IS TOO IMPORTANT TO FETTER WITH LAWS AND TRUTH WERE IT NOT FOR THE FACT THAT THE PRESIDENT'S OWN PARTY DOMINATES CONGRESS THE PRESS THE UNIVERSITIES PUBLIC EDUCATION HOLLYWOOD PUBLISHING LOCAL AND STATE GOVERNMENT THE UNIONS AND BUREAUCRACIES EVERYWHERE THE ASSUMPTION BY HILLARY RODHAM CLINTON OF THE POWERS OF AN OFFICE TO WHICH SHE DID NOT ACCEDE WOULD BE A CONSTITUTIONAL CRISIS IT SHOULD BE A CONSTITUTIONAL CRISIS BUT IT IS NOT IT IS INSTEAD SUBLIMATED IN SCANDAL IT IS INSTEAD THE DRIVING FORCE IN THE CONFLICT OF WHICH WHITEWATER IS BUT THE INSTRUMENT THE MERE EXPRESSION AND THE SHADOW PLAY MR HELPRIN A NOVELIST IS A CONTRIBUTING EDITOR OF THE JOURNAL SEE RELATED LETTERS LETTERS TO THE EDITOR IT'S JUST SCANDALOUS WSJ APRIL 11 1994 9403250045 YY94 MM04 9404110068 940324 LETTERS TO THE EDITOR HEADS YOU WIN TAILS I LOSE IT SEEMS THAT NOTHING WILL SATISFY YOU THE LAST TIME YOU CRITICIZED ME WAS FOR MAKING MY LEGAL SERVICES AVAILABLE FREE TO GOVERNMENT PROSECUTORS JUSTICE AND COWARDICE REVIEW & OUTLOOK JUNE 28 1988 NOW YOU ATTACK ME BECAUSE BUSINESS CLIENTS IN AN OPEN MARKET OFFER TO PAY ME VERY SUBSTANTIAL FEES TO HANDLE THEIR CASES IN LIGHT OF THE PERCEIVED VALUE OF MY WORK LAURENCE TRIBE'S FEES MAY WORK AGAINST HIM MARCH 17 1994 WITH THE JOURNAL I GUESS IT'S HEADS YOU WIN TAILS I LOSE I BELIEVE THE ARTICLE CREATES NUMEROUS FALSE IMPRESSIONS FOR EXAMPLE IT STATES THAT MY FEE AGREEMENT PROVIDED THAT I WAS GUARANTEED A 28 MILLION FEE IN ONE NEW JERSEY CASE REGARDLESS OF DECISION THE AGREEMENT MAKES CLEAR HOWEVER THAT MY FEES WOULD BE PAID ONLY OUT OF ANY PAYMENT RECEIVED BY MY CLIENT FROM THE DEFENDANT MOREOVER I HAD AGREED SEPARATELY WITH TWO COLLEAGUES WHO WORKED WITH ME ON THE CASE THAT I WOULD RECEIVE JUST 40 OF ANY FEES PAID AND THEY WOULD RECEIVE THE REMAINDER THE ARTICLE ALSO STATES THAT WE WOULD HAVE RECEIVED 65 MILLION HAD WE PROSECUTED OUR CLIENT'S CASE SUCCESSFULLY ALL THE WAY TO THE US SUPREME COURT BUT FAILS TO MENTION THAT THE CLIENT HAD ORIGINALLY OFFERED ME 10 MILLION FOR DOING THIS AND I REDUCED THAT FEE BY 35 MILLION IN ADDITION THE ARTICLE FAILS TO NOTE THAT WE WOULD HAVE RECEIVED 65 MILLION ONLY IF WE HAD WON AT LEAST 36 MILLION FOR THE CLIENT THE ARTICLE SAYS THAT I FAILED TO GET THE LOWERCOURT DECISION OVERTURNED BUT MY COLLEAGUES AND I PREVAILED IN THE COURT OF APPEALS BY PERSUADING THAT COURT TO UPHOLD IN FULL THE 115 MILLION AWARDED TO OUR CLIENT BY THE TRIAL JUDGE NO MEAN FEAT IN LIGHT OF THE MANY ERRORS COMMITTED BY OUR CLIENT'S TRIAL COUNSEL WHILE WE DID NOT SUCCEED IN PERSUADING THE COURT OF APPEALS TO REINSTATE THE PUNITIVE DAMAGES THE TRIAL COURT HAD THROWN OUT OUR CLIENT HAD NEVER MADE THE 28 MILLION FEE CONTINGENT ON THAT PART OF THE CASE MOST IMPORTANT FOR A TRUE PICTURE OF MY PRACTICE IS THAT I DO MORE THAN HALF MY LEGAL WORK FREE OF CHARGE REPRESENTING SUCH CLIENTS AS MIGRANT FARMWORKERS SUPREME COURT 1990 PATIENTS AT FAMILY PLANNING CLINICS SUPREME COURT 1991 CIGARETTE SMOKERS SUPREME COURT 1992 PREGNANT WOMEN SUBJECT TO GAG ORDER IN SOUTH CAROLINA EARLIER THIS YEAR AND MANY OTHERS NO COMMERCIAL LAW FIRM IN AMERICA CAN MAKE THIS CLAIM YOUR ARTICLE REFERS TO MY 750ANHOUR FEE BUT WHEN MY PRO BONO WORK IS FACTORED IN MY FEES IN FACT AVERAGE UNDER 350 PER HOUR IN AN ARMSLENGTH TRANSACTION I SIGNED A DETAILED AGREEMENT WITH MY CLIENT A MULTIMILLIONDOLLAR CORPORATION EXPERIENCED IN LEGAL AFFAIRS AND PROVIDED WHAT I BELIEVE WAS OUTSTANDING SERVICE AND AN EXCELLENT RESULT IT IS IRONIC THAT YOU WOULD NOW CRITICIZE THE REWARDS OF MERIT IN A FREE MARKET I AM A THIRDYEAR JOINT JD/MBA CANDIDATE AT HARVARD LAW AND BUSINESS SCHOOLS LAST SEMESTER DESPITE A HUGE WAITING LIST I WAS ABLE TO TAKE PROF TRIBE'S CONSTITUTIONAL LAW CLASS AFTER WATCHING LISTENING TO AND DEBATING WITH PROF TRIBE FOR HOURS PRACTICALLY EVERY DAY FOR WEEKS I THINK I HAVE A GOOD IDEA OF WHAT KIND OF PERSON HE IS I KNOW HE IS A MAN WITH A PASSION FOR TEACHING AND A STRONG SENSE OF RIGHT AND WRONG I ALSO KNOW HIM TO BE FAIR HE DOES LITTLE YET SIGNIFICANT THINGS FOR HIS STUDENTS THAT MOST OTHER HARVARD PROFESSORS DO NOT DO SUCH AS LEARNING THE NAMES OF HIS 150 STUDENTS INVITING A DIFFERENT SUBSET OF THEM OVER TO HIS HOUSE EVERY FRIDAY EVENING BRINGING BASKETS OF APPLES TO EVERY CLASS AND SPENDING A SATURDAY AFTERNOON AFTER THE SEMESTER'S END REVIEWING THE ANSWERS TO HIS FINAL EXAM HE IS CONSTANTLY INNOVATING HIS COURSE SYLLABUS TO IMPROVE LEARNING HE SPENDS CONSIDERABLE TIME PREPARING FOR EACH CLASS HE MAINTAINS CONSISTENT OFFICE HOURS AND HE NEVER MISSED A SINGLE CLASS LAST SEMESTER HE IS DEFINITELY NOT THE UNCARING MONEYFOCUSED MAN SOME OF THOSE QUOTED IN YOUR ARTICLE DEPICT HIM TO BE HIS CLIENTS OBVIOUSLY THINK PROF TRIBE IS WORTH HIS FEES SINCE THEY ALL VOLUNTARILY RETAINED HIM AND AS YOU NOTED HE MAKES FULL DISCLOSURE OF FEE STRUCTURE IN REFERRING TO THE GRENDEL'S DEN LITIGATION YOU FAILED TO MENTION THAT IT WAS A GROUNDBREAKING CASE DEALING WITH IMPORTANT FIRST AMENDMENT SEPARATIONOFCHURCHANDSTATE ISSUES YOU ALSO FAILED TO MENTION THAT HE REPRESENTED THIS VERY MODEST RESTAURANT PRO BONO IF HE HAD LOST HE WOULD HAVE RECEIVED NOTHING THE ONLY REASON HE BILLED THE STATE WAS THAT FEDERAL LAW SPECIFICALLY ALLOWS FOR STATES TO COMPENSATE PLAINTIFFS WHO SUCCESSFULLY CHALLENGE THE CONSTITUTIONALITY OF STATE LAWS IN SOME SENSE THIS LAW IS MEANT TO PREVENT A STATE FROM USING ITS DEEP POCKETS TO OPPRESS ALL WHO CHALLENGE IT PROF TRIBE'S BILLING THE STATE WAS IN PART TO DETER THE STATE FROM OVERLY PROTECTING AND LITIGATING IMPROPER LAWS PROF TRIBE DESERVES THE PRAISE AND COMPENSATION HE IS GETTING HE IS A BRILLIANT SCHOLAR PROVEN APPELLATE LITIGATOR CARING TEACHER AND A VERY DECENT HUMAN BEING YOUR ARTICLE IS A WONDERFUL EXAMPLE OF HOW THE LEGAL SYSTEM IN THIS COUNTRY FINANCIALLY RAPES AMERICAN BUSINESSES ONE PARTICULARLY DISGRACEFUL EXAMPLE WAS THE ASSOCIATE ATTORNEY WHO BILLED A CLIENT 625 FOR A ONESENTENCE LETTER HIS REMARK AT THE TIME WAS THAT IT WAS A VERY LONG SENTENCE PROF TRIBE'S DEFENSE OF THIS BILL WAS EQUALLY DISGRACEFUL HE SAID THE ASSOCIATE THOUGHT ABOUT THE ISSUE ALL DAY BEFORE HE WROTE THE LETTER WHAT IS LEGAL REPRESENTATION WORTH AS A SOCIETY WE HAVE NO IDEA BECAUSE THERE ARE NO GUIDELINES AND LAW FIRMS GENERALLY ARE LOATHE TO DISCUSS THE FINAL ANTICIPATED COST OF ANY LEGAL WORK THE MARKET DETERMINES THE VALUE OF EACH LEGAL TRANSACTION FUELED BY THE LAW FIRMS THEMSELVES OF COURSE NOT ALL ATTORNEYS MAKE BIG MONEY BUT WHY IS A CORPORATE OR A TRIAL ATTORNEY WORTH 300000 A YEAR AND OUR PUBLIC SCHOOL TEACHERS FOR EXAMPLE WORTH ONETENTH OF THAT AMOUNT THIS IS NOT WHAT CAPITALISM AND THE FREE MARKET SYSTEM HAVE WROUGHT THIS WAS CREATED BY A LEGAL SYSTEM OUT OF CONTROL PLAYING BY ITS OWN RULES AND RUNNING ROUGHSHOD OVER VIRTUALLY ALL OTHER FACETS OF AMERICAN LIFE SHAME ON YOU USUALLY YOUR VIEWS ARE MORE ACCEPTABLE TO ME THAN THOSE OF LAURENCE TRIBE BUT IN THE ARTICLE ABOUT HIM YOU HAVE MISSED THE BOAT OK YOU DON'T WANT HIM TO BE CONSIDERED FOR THE SUPREME COURT STATE YOUR REASONS INSTEAD YOU MAKE A BIG DEAL ABOUT HOW MUCH MONEY HE EARNS THAT'S WHAT HAPPENS IN A MARKET ECONOMY I DON'T BELIEVE ANYONE HAS EVER BEEN BEEN FORCED OR COERCED INTO A CONTRACT WITH MR TRIBE I'M A SHAREHOLDER OF A COMPANY MR TRIBE SUCCESSFULLY REPRESENTED HE DID A MAGNIFICENT JOB WITH THE ASSISTANCE OF JONATHAN MASSEY AND KEN CHESEBRO THEY WORKED FOR A CONTINGENCY FEE AND COULD HAVE RECEIVED NOTHING SEE RELATED LETTER LETTERS TO THE EDITOR WHAT LAURENCE TRIBE DIDN'T DO FOR ME WSJ APRIL 11 1994 9403240022 YY94 MM04 9404110060 940317 LAURENCE TRIBE'S FEES MAY WORK AGAINST HIM BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL LAURENCE H TRIBE HAS BEEN DISCUSSED AS A POTENTIAL SUPREME COURT NOMINEE FOR MORE THAN A DECADE WHEN REPUBLICANS OCCUPIED THE WHITE HOUSE HIS LIBERAL REPUTATION DISQUALIFIED HIM NOW IRONICALLY HIS PREEMINENCE AS A LEGAL ENTREPRENEUR AND HIS HIGH FEES THREATEN TO UNDERMINE HIS REPUTATION MR TRIBE A PROFESSOR AT HARVARD LAW SCHOOL IS FACING A FEE CHALLENGE THAT RAISES ETHICAL QUESTIONS ABOUT HIS BILLS WHICH CAN RUN TO SEVERAL MILLION DOLLARS FOR HANDLING AN APPELLATE CASE RALPH VENUTO A CLIENT WHO RAN A STRING OF QUICKLUBE SHOPS IN NEW JERSEY IS SEEKING A REDUCTION OF MR TRIBE'S 2750000 FEE I'M SORRY I EVER LEARNED HIS NAME MR VENUTO SAYS MR TRIBE IS CONSIDERED BY MANY TO BE TOO LIBERAL TO BE APPOINTED TO THE SUPREME COURT EVEN BY PRESIDENT CLINTON BUT THE CONTROVERSY OVER HIS FEES MAKES THE POSSIBILITY EVEN MORE REMOTE MR TRIBE'S BILL TO MR VENUTO PUSHES THINGS RIGHT TO AND MAYBE PAST THE POINT OF UNCONSCIONABLE SAYS CHARLES WOLFRAM A LAW PROFESSOR AT CORNELL UNIVERSITY LAW SCHOOL SAYS REX E LEE A FORMER US SOLICITOR GENERAL WHO WILL ARGUE HIS 59TH CASE BEFORE THE SUPREME COURT NEXT WEEK IF LARRY GETS NOMINATED THERE WILL BE ENORMOUS OPPOSITION AND THOSE OPPOSED TO HIM WILL LOOK FOR ANY POSSIBLE ARGUMENT THEY CAN FIND AND THESE KINDS OF FEES WILL CERTAINLY BE AMONG THEM JOHN THORNE ASSOCIATE GENERAL COUNSEL FOR BELL ATLANTIC CORP WHICH MR TRIBE REPRESENTS SAYS MR TRIBE'S 750ANHOUR FEE IS MORE THAN I WOULD BILL IF I WERE IN PRIVATE PRACTICE MOST TOP LAWYERS FOR COMPANIES AND WEALTHY CLIENTS BILL AT ABOUT 400 AN HOUR BUT MR THORNE ADDS THAT MR TRIBE IS THE MODERNDAY DANIEL WEBSTER THERE'S NOBODY BETTER ON HIS FEET IN ARGUMENTS BEFORE THE US SUPREME COURT MR TRIBE'S WINLOSS RECORD IS 166 AMONG THE BEST IN THE BUSINESS MR TRIBE SAYS THAT FOR EACH CASE THAT PAYS HIM HANDSOMELY THERE ARE AS MANY THAT DON'T PAY AT ALL THE 52YEAROLD PROFESSOR SAYS THAT HIS PAYING CLIENTS IN EVERY CASE EXCEPT FOR RALPH VENUTO SEEM PLEASED WITH WHAT THEY'RE GETTING MR TRIBE IS GENERALLY REGARDED AS ONE OF THE BEST LAWYERS IN THE COUNTRY HE BEGAN TEACHING AT HARVARD IN 1968 AND A DECADE LATER PUBLISHED A TREATISE ON CONSTITUTIONAL LAW THAT IS WIDELY READ BY LAW STUDENTS AND FREQUENTLY CITED IN COURT OPINIONS HIS EARLY COURTROOM WORK WAS CAUSE ORIENTED AND HE DID MUCH OF IT PRO BONO HE TOOK ON ABORTION SODOMY AND THE RIGHT OF HARE KRISHNAS TO SOLICIT DONATIONS AT A STATE FAIR AS THE 1980S PROGRESSED MR TRIBE'S CORPORATE WORK GREW AND HIS FEES BALLOONED HIS STUNNING 1987 SUPREME COURT VICTORY ON BEHALF OF PENNZOIL CO IN ITS 11 BILLION FIGHT WITH TEXACO INC WON HIM ABOUT 4 MILLION IN FEES MAKING HIM THE TOP CHOICE OF COMPANIES LOOKING FOR AN APPELLATE LAWYER BUT MR TRIBE'S ILLUSTRIOUS CAREER MATTERS NOT AT ALL TO MR VENUTO OR TO STEVEN M KRAMER FORMERLY MR VENUTO'S ATTORNEY EACH HAS A LEGAL COMPLAINT ABOUT MR TRIBE'S FEES AND HIS PERFORMANCE MR KRAMER REPRESENTED LIGHTNING LUBE INC MR VENUTO'S COMPANY IN A 1992 CIVIL TRIAL AGAINST WITCO CORP ALLEGING THAT WITCO A COMPETITOR AND A SUPPLIER SPREAD MALICIOUS RUMORS AMONG LIGHTNING LUBE FRANCHISES THAT CAUSED THE COMPANY'S DEMISE A JURY AWARDED LIGHTNING LUBE 115 MILLION IN ACTUAL DAMAGES AND 50 MILLION IN PUNITIVE DAMAGES BUT THE FEDERAL JUDGE PRESIDING OVER THE CAMDEN NJ TRIAL THREW OUT THE PUNITIVEDAMAGE AWARD MR KRAMER SAYS HE AND MR VENUTO RETAINED MR TRIBE TO HANDLE THE APPEAL MR TRIBE AND HIS ASSOCIATE JONATHAN MASSEY FAILED TO GET THE LOWERCOURT DECISION OVERTURNED MR KRAMER IS SUING MR TRIBE IN CAMDEN FEDERAL COURT FOR BREACH OF CONTRACT FRAUD AND SLANDER AMONG OTHER CHARGES AND IS SEEKING DAMAGES OF MORE THAN 5 MILLION MR KRAMER SAYS MR TRIBE NEVER MASTERED THE RECORD AND OVERLOOKED A TECHNICALITY THAT COULD COST LIGHTNING LUBE 630000 MR TRIBE SAYS MR KRAMER'S LAWSUIT IS FRIVOLOUS HE NOTES THAT MR VENUTO FIRED MR KRAMER OVER A FEE DISPUTE AND THAT AS A PART OF THAT SETTLEMENT MR KRAMER STANDS TO GAIN 25 OF THE AMOUNT BY WHICH MR TRIBE'S FEES GET REDUCED MR TRIBE SAYS HE DID A FINE JOB FOR MR VENUTO HOW HARD I WORKED ISN'T THE ISSUE HE SAYS THERE WAS AN AGREEMENT THAT KEYED THE FEES TO A PRODUCT MR TRIBE SAYS HE TOOK THE CASE BECAUSE AT THE TIME HE WAS INTERESTED IN PUNITIVEDAMAGES ISSUES MOREOVER HE SAYS I TEND TO BE SYMPATHETIC WITH LITTLE COMPANIES WHO GET CRUSHED BY BIG GOLIATHS MR TRIBE'S ELABORATE 14PAGE FEE CONTRACT WITH LIGHTNING LUBE INC IS CONTAINED IN THE COURT RECORDS IN IT MR TRIBE LAYS OUT A 15STAGE FEE PLAN HAD MR TRIBE WON THE CASE IN THE US SUPREME COURT HE AND HIS TWO ASSOCIATES WOULD HAVE COLLECTED 65 MILLION LAST WEEK IN A SEPARATE FILING MR VENUTO CHALLENGED THE 2750000 IN LEGAL FEES IN A REQUEST TO THE NEW JERSEY SUPREME COURT'S ARBITRATION COMMITTEE HE WROTE I FEEL THE FEE ASSERTED BY MR TRIBE IS UNCONSCIONABLE BASED ON THE AMOUNT OF WORK INVOLVED AND THE RESULT OBTAINED MR VENUTO PAID MR TRIBE A 50000 RETAINER AT THE OUTSET AND PUT 2750000 INTO AN ESCROW ACCOUNT MR VENUTO SAYS THAT AT THE LAST MINUTE MR TRIBE ASKED PERMISSION TO SHARE THE APPEALSCOURT ARGUMENT WITH HIS ASSOCIATE MR MASSEY A FORMER STUDENT WHO CONFIRMS THAT HE HAD NEVER BEFORE ARGUED AN APPEAL MR TRIBE WON'T COMMENT ON THE ARBITRATION REQUEST WHETHER MR TRIBE WILL GET HIS LIGHTNING LUBE FEE WILL ULTIMATELY BE DECIDED IN ARBITRATION SOMETIME THIS YEAR THE AMERICAN BAR ASSOCIATION'S RULES OF PROFESSIONAL CONDUCT SET NO MAXIMUM FOR LEGAL FEES SAYING ONLY THAT A LAWYER'S FEE SHALL BE REASONABLE MR WOLFRAM OF CORNELL RECALLS THAT IN 1975 ANTITRUST LAWYER MOSES LASKY CHARGED TELEX CORP A SHOCKING 1 MILLION FOR FILING A PETITION TO HAVE THE COMPANY'S CASE AGAINST INTERNATIONAL BUSINESS MACHINES CORP HEARD BEFORE THE SUPREME COURT BUT MR LASKY'S APPEARANCE IN THAT CASE IS CREDITED WITH FORCING IBM TO INITIATE SETTLEMENT TALKS TRIBE GETS 1 MILLION IN A MONTH MR WOLFRAM SAYS AND HIS INVOLVEMENT IN LIGHTNING LUBE DIDN'T PUSH ANYONE TO SETTLE WHILE MR TRIBE SAYS THIS IS HIS FIRST FEE CHALLENGE BY A CLIENT INTERVIEWS WITH OTHER LAWYERS AND CLIENTS SUGGEST THAT MR TRIBE HAS AGGRESSIVE BILLING PRACTICES IN ONE CASE MR TRIBE ACKNOWLEDGES THAT HE SAID HE WOULD QUIT UNLESS HE GOT MORE MONEY ACCORDING TO LETTERS PROVIDED TO THIS NEWSPAPER MR TRIBE WAS RETAINED IN MAY 1991 TO REPRESENT ELLIOT FINEMAN A NEW JERSEY BUSINESSMAN WHO HAD JUST WON A 239 MILLION VERDICT FROM ARMSTRONG WORLD INDUSTRIES INC A LANCASTER PA MAKER OF FLOOR COVERINGS THAT 11STAGE FEE AGREEMENT CALLED FOR MR TRIBE TO EARN FEES RANGING FROM A MINIMUM OF 125 TO A MAXIMUM OF 10 OF ANY DAMAGES PAID BY ARMSTRONG DEPENDING ON HOW FAR HE COULD TAKE THE CASE SOON AFTER THE FEE AGREEMENT WAS SIGNED HOWEVER THE TRIAL JUDGE THREW OUT THE AWARD AND ORDERED A NEW TRIAL MR TRIBE DEMANDED MORE MONEY GUARANTEEING HIM BETWEEN 7 AND 14 OF THE MONEY ARMSTRONG MIGHT EVENTUALLY PAY MR TRIBE SAYS HE ASKED FOR MORE MONEY BECAUSE THE CASE BECAME RISKIER AFTER THE VERDICT WAS REJECTED AND HE DIDN'T FEEL OBLIGED TO REMAIN INVOLVED MR FINEMAN SAYS HE AGREED BECAUSE OF THE CHANGED CIRCUMSTANCES AND SAYS HE IS PLEASED WITH MR TRIBE WHO STILL REPRESENTS HIM THE CASE IS SCHEDULED TO BE RETRIED IN FEDERAL COURT IN NEWARK NEXT MONTH AND MR TRIBE PLANS TO HANDLE POSSIBLE APPEALS MR TRIBE'S BILLS HAVE RAISED EYEBROWS AS FAR BACK AS 1983 IN THE CASE OF GRENDEL'S DEN A RESTAURANT NEAR HARVARD THAT CHALLENGED A STATE LAW ALLOWING CHURCHES TO VETO LIQUOR LICENSES OF NEARBY EATERIES AFTER MR TRIBE WON THE CASE IN THE SUPREME COURT HE BILLED THE STATE OF MASSACHUSETTS 264000 UNDER A FEDERAL ACT THAT ALLOWS PLAINTIFFS LAWYERS TO BILL STATES FOR UNCONSTITUTIONAL LAWS WHEN MASSACHUSETTS CHALLENGED THE FEE IT WAS REVEALED THAT ONE OF MR TRIBE'S ASSOCIATES BILLED THE STATE 625 TO WRITE A ONESENTENCE LETTER IT WAS A LONG SENTENCE THE ASSOCIATE WAS QUOTED AS SAYING AT THE TIME EVEN NOW MR TRIBE SAYS THE ALLEGATION OF OVERBILLING IN THAT CASE WAS A CHEAP SHOT HE CONCEDES IT WAS A SHORT LETTER BUT THE ASSOCIATE DID SPEND A DAY THINKING ABOUT IT EVENTUALLY AN APPEALS COURT AWARDED MR TRIBE ABOUT HALF THE AMOUNT HE HAD SOUGHT ALL MR TRIBE'S LEGAL FEES SUPPLEMENT THE 140000 ANNUAL SALARY HE GETS FOR TEACHING A FULL COURSE LOAD AT HARVARD LAW SCHOOL HARVARD PERMITS ITS LAW PROFESSORS TO SPEND 20 OF THEIR TIME ON PRIVATE MATTERS AND MR TRIBE SAYS HE FINDS TIME FOR HIS PRIVATE LAW PRACTICE BY SLEEPING ONLY FIVE HOURS A NIGHT AND WORKING WEEKENDS IF MR TRIBE IS NOMINATED AND CONFIRMED FOR A SUPREME COURT POST ONE THING IS CERTAIN SAYS MR LEE THE FORMER SOLICITOR GENERAL HE'D HAVE TO TAKE A CUT IN PAY FLIGHT ATTENDANTS WHO SAY THEY WERE FORCED TO BREATHE SECONDHAND SMOKE CAN PURSUE A CLASSACTION LAWSUIT AGAINST THE TOBACCO INDUSTRY A FLORIDA APPEALS COURT SAID THE PROPOSED CLASS CONSISTS OF 60000 CURRENT AND FORMER FLIGHT ATTENDANTS WHO DO NOT SMOKE BUT WERE EXPOSED TO PASSENGERS' CIGARETTE FUMES BEFORE CONGRESS BANNED MOST INFLIGHT SMOKING IN 1989 THE LAWSUIT CLAIMS THAT THESE FLIGHT ATTENDANTS HAVE BECOME ILL OR HAVE OTHERWISE BEEN HARMED BY THEIR FORCED EXPOSURE TO SMOKE THE APPEALSCOURT PANEL IN MIAMI REVERSED A TRIALCOURT JUDGE WHO HAD TOLD 30 FLIGHT ATTENDANTS FROM VARIOUS AIRLINES THAT THEY WOULD EACH NEED TO PURSUE SEPARATE LAWSUITS THE APPEALS COURT RULING ON TUESDAY SAID THE FLIGHT ATTENDANTS HAVE SIMILAR CLAIMS AND TOGETHER COULD ADEQUATELY REPRESENT THE LARGER CLASS OF 60000 AS A PRACTICAL MATTER IT'S MONUMENTALLY SIGNIFICANT BECAUSE IF I HAD TO GO INDIVIDUALLY I WOULD HAVE TO GO TO DIFFERENT STATES SAID STANLEY M ROSENBLATT A MIAMI ATTORNEY REPRESENTING ALL THE FLIGHT ATTENDANTS YOU WOULD GET INVOLVED IN VERY COMPLEX STATUTEOFLIMITATIONS AND JURISDICTIONAL ISSUES ALTHOUGH THE COURT DID NOT CERTIFY A CLASS ACTION THAT IS A FORMALITY AT THIS POINT MR ROSENBLATT SAID BUT THE RULING WAS PLAYED DOWN BY TOBACCO COMPANIES WHICH STRESSED THAT THE FLIGHT ATTENDANTS HAVE NOT FORMALLY WON CLASS CERTIFICATION WILLIAM S OHLEMEYER AN ATTORNEY FOR DEFENDANT PHILIP MORRIS COS AT THE KANSAS CITY MO LAW FIRM SHOOK HARDY & BACON SAID ALL THE APPELLATE COURT HAS SAID IS THAT THE CLASSACTION CLAIMS CAN WITHSTAND A MOTION TO DISMISS PHILIP MORRIS AND RJR NABISCO HOLDINGS CORP SAID THE FLIGHT ATTENDANTS STILL HAVE TO PERSUADE THE TRIAL COURT TO ALLOW THEM TO PROCEED AS A CLASS BESIDES NEW YORKBASED PHILIP MORRIS AND RJR NABISCO THE DEFENDANTS ARE LOEWS CORP NEW YORK AMERICAN BRANDS INC OLD GREENWICH CONN BROOKE GROUP LTD MIAMI AND DOSAL TOBACCO CORP A SMALL MIAMI COMPANY A LOEWS REPRESENTATIVE WAS UNAVAILABLE FOR COMMENT ON THE RULING THE OTHER COMPANIES HAD NO COMMENT LAWSUITS OVER SECONDHAND SMOKE ROSE AFTER THE ENVIRONMENTAL PROTECTION AGENCY IN JANUARY 1993 LINKED THE SMOKE TO LUNG CANCER AND OTHER AILMENTS MOST OF THE RESULTING LITIGATION IS AIMED AT EMPLOYERS THAT ALLOWED SMOKING IN THE WORKPLACE BUT ANOTHER LAWSUIT AGAINST THE TOBACCO INDUSTRY FILED BY A MISSISSIPPI BARBERSHOP OWNER IS SLATED TO GO TO TRIAL IN SEPTEMBER THE US SENATE OVERWHELMINGLY VOTED TO PROHIBIT THE FILING OF LAWSUITS INVOLVING CRASHES OF OLDER LIGHT AIRCRAFT IN WHAT PROPONENTS SAID WAS A BREAKTHROUGH IN THE EFFORT TO CHANGE LIABILITY LAWS AT THE FEDERAL LEVEL THE MEASURE WHICH STILL MUST BE CONSIDERED IN THE HOUSE WOULD BAR SUITS ALLEGING FLAWS IN THE DESIGN OF LIGHT AIRCRAFT THAT ARE 18 YEARS OR OLDER THE GENERAL AVIATION INDUSTRY HAS BEEN LOBBYING FOR SUCH PROTECTION SINCE 1986 SAYING IT HAS BEEN SWAMPED WITH FRIVOLOUS SUITS INVOLVING 30YEAROLD OR 40YEAROLD PLANES YESTERDAY'S 918 VOTE WAS THE FIRST TIME EITHER THE HOUSE OR SENATE HAD EVER FORMALLY CONSIDERED SUCH LEGISLATION CONSUMER GROUPS AND TRIAL LAWYERS DECRIED THE ACTION I FAIL TO SEE HOW THIS IS GOING TO KEEP THE PLANES FROM FALLING OUT OF THE AIR SAID BARRY J NACE PRESIDENT OF THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA MR NACE SAID HE EXPECTS WISER HEADS WILL PREVAIL IN THE HOUSE THE BILL PROVIDES THREE EXCEPTIONS INCLUDING WHERE MANUFACTURERS HAVE PROVIDED FALSE SAFETY INFORMATION ABOUT AN AIRCRAFT TO FEDERAL REGULATORS AND WHERE THE CRASH INVOLVES AN EMERGENCY MEDICAL EVACUATION OR A VICTIM ON THE GROUND THE BILL WAS SPONSORED BY REPUBLICAN SEN NANCY KASSEBAUM OF KANSAS HOME TO THE THREE LARGEST US MANUFACTURERS OF LIGHT AIRCRAFT EXCEPT IN CASES INVOLVING NUCLEAR ACCIDENTS AND CHILDHOOD VACCINES CONGRESS HASN'T ENACTED LEGISLATION GENERALLY AFFECTING RIGHTS TO BRING SUITS INVOLVING DEFECTIVE PRODUCTS OR PERSONAL INJURIES SINCE THE TURN OF THE CENTURY A FEDERAL BILL THAT LIMITS PUNITIVE DAMAGES IN PRODUCT CASES FACES A LIKELY SENATE VOTE THIS SPRING MURDER ACQUITTAL A MAN WHO WAS ACCUSED UNDER A NOVEL LEGAL THEORY OF DESTROYING A WOMAN'S WILL TO LIVE BY RAPING HER WAS ACQUITTED OF MURDER BUT A CALIFORNIA STATECOURT JURY FOUND JOSE ALONSO GARCIA 20 GUILTY OF RAPE AND FIVE COUNTS OF SEXUAL ASSAULT THE ASSOCIATED PRESS REPORTED THE 79YEAROLD RAPE VICTIM DIED A MONTH AFTER THE ATTACK AND MANY CRIMINALLAW SPECIALISTS HAD QUESTIONED WHETHER CASE LAW WOULD SUPPORT A MURDER CHARGE IN SUCH CIRCUMSTANCES ONE JUROR SAID THE JURY CONCLUDED THAT THE WOMAN DIED OF CANCER UNRELATED TO THE RAPE JUNDA WOO IN NEW YORK AND RICHARD B SCHMITT IN WASHINGTON CONTRIBUTED TO THIS ARTICLE A GRAPH PUBLISHED WITH A MARCH 17 ARTICLE ABOUT LAURENCE TRIBE'S LEGAL PRACTICE STATED THAT MR TRIBE WAS GUARANTEED PAYMENT OF 28 MILLION IN FEES IN A FEDERAL COURT CASE IF THE CASE WERE TO BE SETTLED REGARDLESS OF THE DECISION BY THE COURT OF APPEALS MR TRIBE'S FEE AGREEMENT FOR HIS APPELLATE WORK PROVIDED THAT THE FEE WHETHER MORE OR LESS THAN 28 MILLION WAS CONTINGENT ON HIS CLIENT'S WINNING A COURT JUDGMENT OR SETTLEMENT AND WAS SUBJECT TO OTHER LIMITATIONS KEYED TO THE SIZE OF ANY PAYMENT TO THE CLIENT SEE RELATED LETTER LETTERS TO THE EDITOR HEADS YOU WIN TALES I LOSE WSJ MARCH 24 1994 SEE RELATED LETTER LETTERS TO THE EDITOR WHAT LAURENCE TRIBE DIDN'T DO FOR ME WSJ APRIL 11 1994 9403170109 9403240016 YY94 MM03 YY94 MM04 9404110075 940224 YOUR MONEY MATTERS TAXES 1994 THERE'S STILL SOME TIME TO TAKE ACTION IF YOU WANT TO SAVE ON TRUST TAXES BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL IF YOUR GREAT AUNT LEFT YOU HER FORTUNE IN TRUST THERE IS GOOD REASON TO MAKE SURE THE TRUST TAXES ARE DONE EARLY THIS YEAR IT'S THE 1993 TAX ACT AND IT SIGNIFICANTLY INCREASES THE TAX ON ANY ORDINARY INCOME ACCUMULATED IN A TRUST INDEED ANYTHING OVER 7500 WILL BE TAXED AT A STIFF 396 THE OLD TOP TRUST RATE OF 31 WHICH USED TO APPLY TO THE INCOME OVER 11250 NOW KICKS IN AT ONLY 3500 IT'S REALLY PRETTY HARSH SAYS ATTORNEY JOSEPH H NEWBERG TAX PARTNER WITH SULLIVAN & WORCESTER BOSTON NOTING THAT 396 IS THE SAME RATE PAID ON ORDINARY INCOME BY PEOPLE EARNING MORE THAN 250000 A YEAR BUT FOLKS WHO DON'T DAWDLE MAY HAVE SOME ROOM FOR MANEUVERING FOR ONE THING TRUSTEES HAVE 65 DAYS FROM YEAR END UNTIL MARCH 6 TO MAKE DISTRIBUTIONS AND HAVE THEM BE TREATED AS IF MADE ON DEC THAT MEANS A TRUSTEE COULD DISTRIBUTE INCOME TO A BENEFICIARY IN A LOWER TAX BRACKET GETTING A 1993 DEDUCTION FOR THE DISTRIBUTION THE BENEFICIARY IN TURN WOULD PAY TAXES ON THAT INCOME BUT AT HIS OR HER TAX RATE THAT COULD RESULT IN A SUBSTANTIAL TAX SAVINGS TRUSTEES HAVE ONLY A WEEK AND A HALF TO TAKE ADVANTAGE OF THIS STRATEGY FOR THE 1993 TAX YEAR THERE IS CERTAINLY STILL TIME TO ACT SAYS MR NEWBERG BUT DO IT NOW IN SOME CASES TRUSTEES MAY NOT WANT TO GIVE MONEY TO THE BENEFICIARIES MAYBE THE BENEFICIARIES DON'T NEED THE INCOME OR PERHAPS THEY MIGHT SQUANDER IT SAYS STUART KESSLER SENIOR PARTNER WITH GOLDSTEIN GOLUB KESSLER & CO NEW YORK TRUSTEES MIGHT STILL BE ABLE TO TAKE ADVANTAGE OF THIS STRATEGY IF THE TRUSTS ALLOW DISTRIBUTIONS FOR THE BENEFIT OF THE BENEFICIARY SAYS MARTIN M SHENKMAN A NEW YORK ATTORNEY AND FINANCIAL ADVISER AS SUCH THE TRUSTEE MIGHT BE ABLE TO PAY SCHOOL TUITION OR MEDICAL BILLS OR EVEN MAKE AN INVESTMENT IN A BENEFICIARY'S NAME BUT BEFORE TRUSTEES MAKE ANY DISTRIBUTIONS THEY HAD BETTER TAKE A GOOD LOOK AT THE BENEFICIARIES' TAXES THERE IS NO SAVINGS IF THEY ARE ALREADY IN THE 396 BRACKET EVEN MINOR CHILDREN CAN BE IN THIS BRACKET SINCE THOSE UNDER 14 YEARS OLD ARE TAXED AT THEIR PARENTS' RATE AFTER THE FIRST 1200 OF UNEARNED INCOME TRUSTEES ALSO NEED TO READ THE TRUST AGREEMENT MANY TRUSTS DON'T ALLOW ANY DISTRIBUTIONS OF INCOME OR ALLOW DISTRIBUTIONS ONLY IF THE BENEFICIARIES NEED THE INCOME MOREOVER A DISTRIBUTION SIMPLY MAY NOT MAKE ANY SENSE FOR MANY TRUSTS IN MANY GENERATIONSKIPPING TRUSTS A DISTRIBUTION OF INCOME WOULD DEFEAT THE GOAL OF PROTECTING ASSETS FROM EVEN HIGHER TAXES AS PART OF A BENEFICIARY'S ESTATE THE DISTRIBUTION STRATEGY ALSO DOESN'T WORK FOR SHORTTERM CAPITAL GAINS IN GENERAL UNLESS A PROVISION HAS BEEN MADE IN THE TRUST AND IS CONSISTENT WITH LOCAL LAW MR NEWBERG SAYS SHORTTERM CAPITAL GAINS WILL BE TAXED TO THE TRUST AS ORDINARY INCOME EVEN IF A DISTRIBUTION IS MADE IF YOU CAN'T OR DON'T WANT TO DISTRIBUTE THERE ARE STILL WAYS TO CUT THIS YEAR'S TRUST TAXES SUCH AS CHANGING THE INVESTMENT MIX TO REDUCE TAXABLE INCOME AND THE SOONER YOU MAKE THE CHANGE THE LESS TAXES THE TRUST WILL PAY FOR 1994 MUNICIPAL BONDS FOR EXAMPLE DON'T PRODUCE TAXABLE INCOME SOME LIFE INSURANCE PRODUCTS MAY OFFER SIMILAR ADVANTAGES LONGTERM CAPITAL GAINS AREN'T TAXED UNTIL THE INVESTMENT IS SOLD AND THEN ONLY AT A TOP RATE OF 28 MUTUAL FUNDS ARE ALREADY TARGETING THIS MARKET DESIGNING PORTFOLIOS THAT PRODUCE THE LEAST POSSIBLE AMOUNT OF TAX MR SHENKMAN SAYS THIS SEEMINGLY SIMPLE STRATEGY HOWEVER CAN TURN INTO A QUAGMIRE FOR THE UNWARY TRUSTEE THINK ABOUT WHAT HAPPENS IN A TRUST DESIGNED TO PROVIDE INCOME TO A SURVIVING SPOUSE FOR LIFE WITH THE REMAINDER GOING TO THE CHILDREN INVESTING ONLY IN THE STOCK MARKET WOULD FAVOR THE CHILDREN OVER THE SPOUSE WHILE MOVING STRICTLY TO TAXFREE BONDS WOULD BENEFIT THE SPOUSE TO THE DETRIMENT OF THE CHILDREN WHENEVER SOMEONE DOES SOMETHING JUST TO AVOID TAXES THEY RUN THE CHANCE OF RUNNING AFOUL OF SOMETHING ELSE SAYS SANDRA A CIULLO DIRECTOR OF ESTATE AND TRUST SERVICES FOR GRANT THORNTON IN NEW YORK AND IN THIS CASE IT MAY BE THE TRUSTEE'S FIDUCIARY RESPONSIBILITIES THAT MEANS MANY PEOPLE MAY JUST HAVE TO SWALLOW HARD AND WATCH UNCLE SAM TAKE A BIGGER BITE IN THAT CASE ADVISERS SAY IT IS IMPORTANT TO REMEMBER WHY A TRUST WAS SET UP IN THE FIRST PLACE INCOME TAXES ARE NOT THE MAJOR REASON TRUSTS ARE SET UP EXPLAINS MR SHENKMAN THE PRIMARY REASON IS PROTECTION OF PEOPLE AND ASSETS AND THAT HASN'T CHANGED ACT BUT ALSO KICK IN AT MUCH LOWER INCOME LEVELS CREATING A DOUBLE WHAMMY FOR MANY TRUSTS SEE RELATED LETTER LETTERS TO THE EDITOR TAX RATES ON TRUSTS WSJ APRIL 11 1994 9402240127 YY94 MM04