BENSALEM PA CHARMING SHOPPES INC SAID SALES FOR THE FIVE WEEKS ENDED APRIL 2 ROSE 15 TO 1228 MILLION FROM 1071 MILLION A YEAR EARLIER AND SALES AT STORES OPEN AT LEAST A YEAR ROSE 6 SALES FOR THE TWO MONTHS INCREASED 11 TO 1973 MILLION FROM 1772 MILLION WHILE SALES AT STORES OPEN AT LEAST A YEAR ROSE 2 THE COMPANY OPERATES 1340 STORES IN 45 STATES UNDER THE NAMES FASHION BUG AND FASHION BUG PLUS 9404080194 940408 ECONOMY SALES OF NONDURABLE GOODS ARE EXPECTED TO INCREASE AS SPENDING HABITS SHIFT BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A SHIFT IN CONSUMER SPENDING THIS YEAR IS EXPECTED TO PUT MORE BOUNCE IN THE SALES OF APPAREL SHOES NAMEBRAND FOODS AND OTHER EVERYDAY PRODUCTS COMPANIES IN THOSE PRODUCT AREAS KNOWN AS NONDURABLES ARE ALREADY SEEING A PICKUP IN BUSINESS SALES IN RECENT MONTHS ACCELERATED AT TALBOTS INC THE WOMEN'S CLOTHING CHAIN AND HARTMARX CORP A MAKER OF MEN'S SUITS AND WOMEN'S APPAREL NAMEBRAND COOKIES MADE BY NABISCO FOODS A UNIT OF RJR NABISCO INC ARE GAINING IN MARKET SHARE OVER LOWERPRICED STORE BRANDS IN FACT SALES OF THE LATTER ARE DECLINING FOR THE FIRST TIME IN YEARS WE'RE ENTERING THE SECOND STAGE OF THE ECONOMIC UPTURN SAYS ALLEN SINAI CHIEF ECONOMIST WITH LEHMAN BROTHERS HE EXPECTS SOON TO SEE DECLINES IN THE SALES GROWTH OF BIGTICKET DURABLES SUCH AS AUTOS AND APPLIANCES THAT HAVE FUELED THE ECONOMIC RECOVERY THUS FAR INSTEAD AS MORE PEOPLE GET JOBS AND INCOMES BEGIN TO RISE AGAIN THEY'LL MOVE FROM BUYING THAT CRITICAL BIGTICKET ITEM TO BUYING PRODUCTS THAT ARE SECOND ON THE PRIORITY LIST CONSUMERS WILL BE SPENDING MORE ON A WHOLE RANGE OF ITEMS FROM CLOTHING TO TOYS TO SPORTS EQUIPMENT SAYS MR SINAI THAT'S THE TYPICAL PATTERN WHEN AN ECONOMY IS COMING OUT OF RECESSION THIS TIME HOWEVER SPENDING ON CLOTHING AND OTHER NONDURABLES LAGGED MORE THAN USUAL NOTES SUSAN STERNE PRESIDENT OF ECONOMIC ANALYSIS ASSOCIATES AT FIRST CUSTOMERS DIDN'T LIKE THE PRICES AND THEN THEY SPENT THEIR MONEY ON AUTOS AND OUTFITTING NEW HOMES JOHN NELSON A COMPUTER PROGRAMMER IN ATLANTA IS AN EXAMPLE OF THAT PHENOMENON HE RECENTLY BOUGHT A NEW 12PASSENGER VAN TO ACCOMMODATE HIS GROWING FAMILY THE 450AMONTH FINANCING PAYMENT MEANS HIS BUDGET WILL BE PRETTY TIGHT I'M GOING TO HAVE TO MAKE THE OLD SUITS LAST SPENDING ON NONDURABLES SHOWED ONLY A 24 GAIN LAST YEAR COMPARED WITH A 73 INCREASE FOR DURABLES IN THE FIRST QUARTER OF THIS YEAR SALES OF DURABLES POWERED ALONG BY THE BOOMING AUTO INDUSTRY CONTINUED TO SURPASS THOSE OF NONDURABLES BUT NOW THERE'S A ROLEREVERSAL IN THE MAKING A CONTRIBUTING FACTOR ECONOMISTS SAY WILL BE THE IMPACT ON HOME SALES OF HIGHER INTEREST RATES CONSUMERS USUALLY SPEND THOUSANDS OF DOLLARS ON NEW APPLIANCES AND FURNITURE AFTER BUYING A NEW HOME IF HOME SALES TAIL OFF BECAUSE OF HIGHER RATES ADDITIONAL MONEY WILL BE FREED FOR CONSUMERS TO SPEND ON OTHER PRODUCTS INDEED MANY RETAILERS YESTERDAY REPORTED THAT THEIR SALES HAD PICKED UP IN MARCH MANY CONSUMERS NO LONGER FEEL THE NEED TO PINCH PENNIES SAYS ANDREW SHORE A PERSONALCARE AND HOUSEHOLD GOODS ANALYST WITH PAINEWEBBER INC HE PARTICULARLY THINKS PROCTER & GAMBLE CO WILL DO WELL AS THE ECONOMIC RECOVERY CONTINUES THE COMPANY HAS MADE ITS BROAD RANGE OF WELLKNOWN PRODUCTS INCLUDING IVORY SOAP AND DUNCAN HINES CAKE MIX MORE APPEALING TO CONSUMERS BY LOWERING PRICES OVER THE PAST YEAR IT WILL BE ONE OF THE BIGGEST WINNERS IN THE CONSUMER NONDURABLES GROUP AS CONSUMERS ARE MORE WILLING TO BUY BRANDS AND PRIVATELABEL SALES BEGIN TO THIN MR SHORE SAYS NATIONAL BRANDS PICK UP WHEN DISPOSABLE INCOME PICKS UP ADDS ROBERT JACKSON VICE PRESIDENT OF PLANNING FOR NABISCO FOODS THE CORRELATION OVER TIME IS ALMOST PERFECT HE SAYS OVER THE PAST FEW MONTHS HE SAYS SALES OF NABISCO PRODUCTS SUCH AS OREO COOKIES RITZ CRACKERS AND GREY POUPON MUSTARD HAVE GAINED AT THE EXPENSE OF STOREBRANDS AT HARTMARX THE TONE IS UPBEAT AS WELL SALES OF THE COMPANY'S LINE OF SUITS UNDER SUCH BRAND NAMES AS HICKEYFREEMAN AND HART SCHAFFNER & MARX ARE UP PRETTY SUBSTANTIALLY THIS YEAR SAYS HOMI PATEL PRESIDENT OVER THE PAST TWO OR THREE WEEKS WE ARE SEEING BETTER RESULTS IN OUR WOMEN'S BUSINESS WHICH HAD BEEN TERRIBLE FOR A LONG TIME HE ADDS EVEN SO FEW ANALYSTS EXPECT TO SEE THE KIND OF HEADY SALES OF CONSUMER PRODUCTS THAT WAS THE HALLMARK OF THE 1980S MR SINAI BELIEVES THAT THE CONSUMER CHASTENED BY THE RECESSION IS NOW MORE CONSERVATIVE AND WILL PROBABLY STAY SO FOR AT LEAST THE NEXT FEW YEARS 9404080193 940408 TANDY SALES ROSE IN MARCH FORT WORTH TEXAS TANDY CORP SAID SALES AT ALL US STORES INCREASED 17 IN MARCH TO 3232 MILLION FROM 2763 MILLION THE CONSUMER ELECTRONICS RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR INCREASED 1 IN THE US IN MARCH 9404080192 940408 DETROIT DIESEL'S NEW ENGINE DETROIT DETROIT DIESEL CORP SAID IT WILL BEGIN PRODUCTION NEXT YEAR OF A NEW ENGINE THE DETROIT DIESEL 55 SERIES AT ITS FACTORY IN REDFORD MICH DETROIT DIESEL SAID THE NEW ENGINE IS BETTER SUITED TO MEET MORE STRINGENT US FUEL ECONOMY REQUIREMENTS AND EMISSION STANDARDS 9404080191 940408 DELTA TRAFFIC INCREASED IN MARCH ATLANTA DELTA AIR LINES SAID MARCH TRAFFIC INCREASED 83 TO 732 BILLION REVENUE PASSENGER MILES FROM 676 BILLION A YEAR AGO A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE DELTA'S LOAD FACTOR OR PERCENTAGE OF SEATS FILLED WAS 6703 COMPARED WITH 6293 A YEAR AGO THE AIRLINE SAID THAT FOR THE FIRST THREE MONTHS OF THE YEAR IT FLEW 1939 BILLION REVENUE PASSENGER MILES UP 61 FROM 1827 BILLION LOAD FACTOR ROSE TO 6181 FROM 6293 A YEAR AGO 9404080190 940408 TECHNOLOGY & HEALTH MOTOROLA FIRM TO DEVELOP PHONE ANSWERING DEVICE BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS MOTOROLA INC AND THE NATION'S LARGEST PAGING CONCERN ARE TEAMING UP TO DEVELOP A PORTABLE TELEPHONE ANSWERING DEVICE NO BIGGER THAN A BEEPER THE PLANS TO BE ANNOUNCED TODAY BY MOTOROLA AND DALLASBASED PAGING NETWORK INC COMES AS THE PAGING INDUSTRY TRIES TO BROADEN ITS APPEAL BEYOND THE BUSINESS MARKET FOR INSTANCE MOTOROLA HAS FOR MONTHS BEEN PITCHING A LINE OF NEONCOLORED PAGERS WHILE PRONET INC ANOTHER DALLAS PAGING COMPANY EARLIER THIS YEAR LAUNCHED A MALLBASED RETAIL STORE THAT SELLS ONLY WIRELESS PRODUCTS NEVERTHELESS ACCEPTANCE HAS BEEN SLOW WITH PAGERS USED BY ONLY ABOUT 7 OF THE US POPULATION BY CONTRAST ABOUT ONETHIRD OF AMERICANS OWN TELEPHONE ANSWERING MACHINES AND ABOUT 30 OF US HOUSEHOLDS HAVE A PERSONAL COMPUTER THE NEW MOTOROLAPAGENET DEVICE CALLED VOICENOW TRANSLATES MESSAGES INTO DIGITAL BITS WHICH THEN ARE ZIPPED OVER AIRWAVES TO A RECEIVER THAT RESEMBLES TODAY'S BEEPERS THE USER NOTIFIED BY A TONE THAT A MESSAGE HAS ARRIVED CAN EITHER REPLAY THE VOICE MESSAGE IMMEDIATELY OR STORE IT ON A COMPUTER CHIP TO REPLAY LATER THE PRODUCT TO BE MANUFACTURED BY MOTOROLA WILL BE AVAILABLE NEXT YEAR IT IS AN ENHANCED VERSION OF VOICE PAGERS THAT WERE POPULAR A DECADE AGO BUT DISAPPEARED THEN PAGING COMPANIES FOUND IT WAS NOT ECONOMICAL TO OFFER THE SERVICE SINCE VOICE DATA TOOK UP MUCH SPACE ON A WIRELESS SYSTEM ALREADY SHORT OF CAPACITY AND BECAUSE THE DEVICES WERE ANALOG RATHER THAN DIGITAL SOUND QUALITY OFTEN WAS POOR IN RECENT YEARS ADVANCES IN DATA COMPRESSION AND TRANSMISSION SYSTEMS HAVE MADE DIGITAL VOICE MESSAGING MORE EFFICIENT AND LOWERED ITS COST PAGENET PRESIDENT TERRY L SCOTT SAID VOICENOW WILL COST USERS ABOUT 20 A MONTH WHILE THAT'S DOUBLE THE PRICE OF MOST CONVENTIONAL PAGERS THAT DISPLAY ONLY THE CALLER'S PHONE NUMBER MR SCOTT SAYS IT'S FAR LESS THAN A CELLULAR TELEPHONE BILL WHICH AVERAGES ABOUT 75 A MONTH CONSUMERS ARE SAYING THAT JUST GIVING THEM A TELEPHONE NUMBER ISN'T ENOUGH ANYMORE MR SCOTT SAID STILL SOME ANALYSTS QUESTION WHETHER EVEN THE IMPROVED VOICE PAGERS WILL AMOUNT TO ANYTHING MORE THAN NICHE PRODUCTS FREDERICK W MORAN A WIRELESS TELECOMMUNICATIONS ANALYST AT SALOMON BROTHERS INC IN NEW YORK PROJECTS THE PENETRATION OF PAGERS WILL GROW TO 86 OF THE POPULATION THIS YEAR FROM 73 IN 1993 THANKS PRIMARILY TO CONTINUED GROWTH IN THE MARKET FOR SIMPLE DEVICES THAT DISPLAY PEOPLE'S TELEPHONE NUMBERS THE CORE OF THE PAGER BUSINESS WILL REMAIN THE LOWEND USER LOOKING FOR A LOWCOST WAY OF KEEPING IN TOUCH MR MORAN SAID 9404080189 940408 ASIAN ENTREPRENEUR OFFERS PHILIPPINES PROFIT PACT IF GIVEN BIGGER AIRLINE ROLE BY REGINALD CHUA STAFF REPORTER OF THE WALL STREET JOURNAL MANILA LUCIO TAN SEEMS SURE HE CAN MAKE PHILIPPINE AIRLINES SOAR SO SURE THAT HE'S OFFERING TO GUARANTEE THE GOVERNMENT AS MUCH AS TWO BILLION PESOS 738 MILLION OVER THREE YEARS IF HE CAN'T THE OFFER TO THE GOVERNMENT AN UNEASY PARTNER WITH MR TAN IN THE TROUBLED CARRIER WAS MADE IN A LETTER SIGNED BY THE CHINESEFILIPINO ENTREPRENEUR AND ADDRESSED TO PRESIDENT FIDEL RAMOS MANILA'S RESPONSE ISN'T YET KNOWN IN THE LETTER MR TAN TOLD THE GOVERNMENT THAT MALAYSIAN BUSINESSMAN ROBERT KUOK IS INTERESTED IN PURCHASING MANILA'S 20 STAKE IN PR HOLDINGS THE TANCONTROLLED CONSORTIUM THAT OWNS TWOTHIRDS OF THE AIRLINE SUCH A DEAL WOULD ALLOW MR TAN A FREER HAND TO RUN THE AIRLINE WHILE LEAVING MANILA WITH A 33 DIRECT STAKE IN PAL AN ASSOCIATE OF MR KUOK CONFIRMED THAT HE IS CONSIDERING TAKING A STAKE IN THE AIRLINE BUT DECLINED TO GIVE DETAILS MR TAN ALSO SAID IN THE LETTER THAT HE IS CONFIDENT PAL DESPITE ITS CURRENT TIDE OF RED INK CAN TURN IN PROFIT OF AROUND TWO BILLION PESOS A YEAR OR ABOUT SIX BILLION PESOS OVER THREE YEARS HE WROTE THAT HE'S WILLING TO ENSURE MANILA GETS PAID ONETHIRD OF THAT SUM IN PROPORTION TO ITS REMAINING SHAREHOLDING IF HE CAN'T PRODUCE THOSE RESULTS THIS WOULD IMPLY THAT ALL PROFITS ARE DISTRIBUTED AMONG SHAREHOLDERS AN UNUSUAL PRACTICE AND A POINT MR TAN'S LETTER DIDN'T ADDRESS MR TAN HAS A CLEAR INTEREST IN REDUCING GOVERNMENT CONTROL OF THE AIRLINE BUT HE COULD HAVE CHOSEN A SIMPLER METHOD THE GOVERNMENT AND MR TAN HAVE SPARRED OVER STRATEGIC DECISIONS WITH MANILA LOATH TO GIVE MUCH LEEWAY IN THE NATIONAL CARRIER TO MR TAN A CLOSE ASSOCIATE OF FORMER PRESIDENT FERDINAND MARCOS AND THE DEFENDANT IN SEVERAL CASES OF TAX EVASION MR TAN DENIES THE TAX CHARGES BUT MR TAN WHO CONTROLS FIVE OF 15 SEATS ON PAL'S BOARD COULD ACHIEVE MUCH THE SAME GOAL BY SIMPLY WAITING UNTIL PR HOLDINGS' ANNUAL STOCKHOLDERS' MEETING IN AUGUST THEN EXPLOITING A PROVISION OF THE CONSORTIUM'S BYLAWS THAT ALLOWS HIM TO NAME TWOTHIRDS OF THE AIRLINE'S BOARD FURTHERMORE PAL HASN'T YET COME NEAR TO EARNING THE PROFIT MR TAN IS PROMISING IN THE YEARS ENDED MARCH 1992 AND MARCH 1993 TWO OF PAL'S BESTPERFORMING YEARS THE COMPANY REPORTED ANNUAL EARNINGS OF MORE THAN ONE BILLION PESOS THE AIRLINE IS LIKELY TO HAVE A LOSS THIS YEAR LARGELY BECAUSE OF HEFTY ONETIME CHARGES AND BALLOONING MAINTENANCE BILLS IN THE 10 MONTHS TO JANUARY PAL HAD A LOSS OF 153 MILLION PESOS AGAINST A GAIN OF 134 BILLION PESOS A YEAR EARLIER ONE TAN ASSOCIATE SAID MR TAN ISN'T TALKING ABOUT TURNING THE AIRLINE AROUND RIGHT AWAY OR REACHING THE TWOBILLION PESO PROFIT LEVEL IN THE NEAR FUTURE THIS YEAR OR NEXT IT'S IMPOSSIBLE HE SAID BUT ASSOCIATES OF MR TAN CONTEND THE AIRLINE EVENTUALLY CAN SHOW STRONG PROFIT GROWTH ESPECIALLY IF IT CONCENTRATES ON A CORE BUSINESS OF FILIPINO TRAVELERS AND USES SECONDHAND PLANES RATHER THAN SPENDING FOR NEW AIRCRAFT THAT'S AT THE HEART OF A MAJOR DISPUTE BETWEEN TAN A TOBACCO MAGNATE AND MANILA PAL CHIEF EXECUTIVE OFFICER CARLOS DOMINGUEZ A FORMER CABINET SECRETARY AND A GOVERNMENT NOMINEE ON A PREVIOUS PAL BOARD ARGUES THE AIRLINE NEEDS TO REFLEET TO LOWER MAINTENANCE COSTS AND TAKE ADVANTAGE OF MORE FUELEFFICIENT AIRCRAFT IT ISN'T CERTAIN THAT MR KUOK'S VIEWS ON THE AIRLINE MATCH THOSE OF MR TAN BUT TAN ASSOCIATES SAID MR KUOK WOULD BRING TO PAL SOME KNOWLEDGE OF THE INDUSTRY MR KUOK WHOSE BUSINESS INTERESTS INCLUDE SUGAR HOTELS AND MEDIA ISN'T KNOWN TO HAVE ANY SIGNIFICANT STAKES IN AIRLINES HOWEVER HE SERVED FROM 1969 TO 1971 AS CHAIRMAN OF MALAYSIASINGAPORE AIRLINES WHICH WAS SUBSEQUENTLY SPLIT INTO SINGAPORE AIRLINES AND MALAYSIAN AIRLINE SYSTEM 9404080188 940408 INTERNATIONAL BRITISH AEROSPACE AEROSPATIALE HOPE UPDATED ENLARGED CONCORDE TAKES OFF BY DANA MILBANK AND BRIAN COLEMAN STAFF REPORTERS OF THE WALL STREET JOURNAL HERE THEY GO AGAIN JUST WHEN YOU THOUGHT YOU'D HEARD THE LAST OF SUPERSONIC TRANSPORT BRITISH AEROSPACE PLC AND FRANCE'S AEROSPATIALE SA THE COMPANIES THAT BROUGHT YOU THE LOSSMAKING CONCORDE HAVE COME ROARING BACK YESTERDAY IN PARTNERSHIP WITH DAIMLERBENZ AG'S DEUTSCHE AEROSPACE UNIT THEY ANNOUNCED A RESEARCH PROGRAM TO DEVELOP A SECONDGENERATION CONCORDE ACCORDING TO THE VISION OUTLINED IN BAE'S NEWS RELEASE THERE COULD BE 500 TO 1000 OF THESE SPEEDY BIRDS IN THE SKY EARLY NEXT CENTURY WHISKING ORDINARY FOLK AROUND THE WORLD FOR FARES NOT MUCH MORE THAN A 747'S BAE SAID THE THREE COMPANIES WILL SPEND SERIOUS MONEY AND REQUEST GOVERNMENT FUNDS THE COMPANIES SAID THEY WILL DEVOTE AS MANY AS 100 FULLTIME AND PARTTIME WORKERS TO THE PROJECT AND SPEND ABOUT 100 MILLION A YEAR BAE AEROSPATIALE AND DEUTSCHE AIRBUS WHICH IS ANOTHER DAIMLERBENZ UNIT ALONG WITH CONSTRUCCIONES AERONAUTICAS SA OF SPAIN MAKE UP THE AIRBUS INDUSTRIE CONSORTIUM WHICH THEY FORMED IN THE EARLY 1970S BUT WILL CONCORDE II FLY FORGET IT IT WILL NEVER HAPPEN SAYS WYN ELLIS SG WARBURG SECURITIES' AEROSPACE ANALYST THE DAY ANYBODY INVESTS REAL MONEY IN THESE THINGS SELL THEIR SHARES AND HOW DO THE AIRLINES FEEL ABOUT A NEW CONCORDE A SPOKESMAN FOR AMR CORP'S AMERICAN AIRLINES SAID THE AIRLINE ISN'T INTERESTED IN THE PLANE THEY HAVE REASON TO BE SKEPTICAL THE FIRST GENERATION SUFFERED AN ABORTED TAKEOFF COSTING BILLIONS OF DOLLARS AND 15 YEARS OF EFFORT FAR FROM CHARLES DE GAULLE'S BOAST THAT THE CONCORDE WOULD END AMERICAN COLONIZATION OF THE SKIES ONLY 14 CONCORDES WERE BUILT IN THE 1970S AND THOSE WERE SOLD TO AIR FRANCE AND BRITISH AIRWAYS THE CAPTIVE NATIONAL CARRIERS THOUGH BRITISH AIRWAYS MAKES AN OPERATING PROFIT ON ITS CONCORDES THE PLANE NEVER COVERED ITS HUGE ORIGINAL INVESTMENT THE ENVIRONMENTAL MOVEMENT BLOCKED THE CONCORDE FROM MANY ROUTES BECAUSE OF ITS NOISE AND POLLUTION AND THE FARES PROVED TOO HIGH FOR ALL BUT THE RICH US PLANS FOR A SIMILAR PLANE WERE SHOT DOWN BY THE NIXON ADMINISTRATION SUBSEQUENT PLANS INCLUDING A NEW YORKTOSYDNEYINMINUTES SPACEPLANE A PET OF THE US DEFENSE DEPARTMENT WERE PUT IN HOLDING PATTERNS BUT THE EUROPEAN COMPANIES THINK THINGS WILL BE DIFFERENT THIS TIME THE NEW PLANES STILL WOULD TRAVEL AT TWICE THE SPEED OF SOUND BUT THEY WOULD CARRY 250 PASSENGERS COMPARED WITH 100 ON THE CURRENT CONCORDE FOR DISTANCES UP TO 6200 MILES DOUBLE THE CURRENT RANGE THEY WOULD ALSO BE QUIETER CLEANER AND CHEAPER INSTEAD OF STRATOSPHERIC FARES BRITISH AIRWAYS CHARGES 3030 4451 FOR A ROUND TRIP ON THE CONCORDE BETWEEN NEW YORK AND LONDON COMPARED WITH 239 FOR ITS CHEAPEST SUBSONIC FARE THE NEW PLANES WOULD BE CHEAP ENOUGH TO ATTRACT VACATIONERS WITH BLUE JEANS AND CAMERAS DESIGNERS THINK THEY CAN ACHIEVE THESE FARES BECAUSE THE NEW PLANE WHILE CARRYING MORE THAN DOUBLE THE PASSENGERS OF THE CURRENT CONCORDE CAN ALSO BE MADE SIGNIFICANTLY MORE FUEL EFFICIENT NOT EVERYONE FINDS THIS STRICTLY FANCIFUL WE'RE VERY INTERESTED IN A NEW SUPERSONIC SAYS A BRITISH AIRWAYS SPOKESMAN ADDS A BOEING CO SPOKESMAN WE'RE FINDING THE POTENTIAL MARKET WOULD BE SIGNIFICANT EXPERTS SAY US COMPANIES AND NASA SPEND MORE THAN 100 MILLION A YEAR RESEARCHING SUPERSONIC TRANSPORT AND THE JAPANESE ABOUT 60 MILLION THE EUROPEAN PARTNERSHIP WOULD BE SIMILAR TO A GOVERNMENTFUNDED PROJECT INVOLVING US COMPANIES ALTHOUGH BOTH GROUPS WOULD LIKELY COOPERATE ON A NEW CONCORDE THE EUROPEAN AND AMERICAN PRODUCERS ALONG WITH RUSSIA'S TUPOLEV AND VARIOUS JAPANESE COMPANIES ALREADY PARTICIPATE IN A SEPARATE SUPERSONIC STUDY GROUP THE EUROPEANS ARE TRYING NOT TO RAISE EXPECTATIONS ESPECIALLY BECAUSE THE PLANES WOULDN'T FLY UNTIL 2005 OR 2010 WHEN THE FIRST CONCORDES RETIRE AN AEROSPATIALE SPOKESMAN SAYS THE MEMORANDUM OF UNDERSTANDING SIGNED BY THE THREE COMPANIES IS FOR TWO YEARS BUT WE KNOW THAT RESEARCH PROGRAMS OFTEN NEED MORE TIME HE SAYS THIS WILL PROBABLY TAKE AT LEAST FOUR TO FIVE YEARS AT LEAST ALL THREE COMPANIES WILL BE BUSY STUDYING ANOTHER COSTLY FLYING MACHINE A SUBSONIC PLANE CAPABLE OF CARRYING BETWEEN 550 AND 800 PEOPLE THAT PROJECT WHOSE OTHER PARTNERS INCLUDE BOEING AND CONSTRUCCIONES AERONAUTICAS IS EXPECTED TO COST AS MUCH AS 15 BILLION AND UNLIKE A SECONDGENERATION CONCORDE THE SOCALLED SUPERJUMBO ALREADY HAS SEVERAL EAGER CUSTOMERS THE WORLD INDUSTRY WILL HAVE ONE MAJOR PROJECT ON ITS MIND FOR THE NEXT 10 YEARS SAID CHRIS AVERY OF PARIBAS CAPITAL MARKETS AND IT'S NOT SONOFCONCORDE 9404080187 940408 DIMESTORE DRAMA WOOLWORTH IS SHAKEN BY ACCOUNTING PROBE AT A VERY BAD MOMENT FADED CHAIN WAS IN MIDST OF A MAJOR OVERHAUL NEGOTIATING WITH BANKS A SHOCK TO A STIFF CULTURE' BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AS WOOLWORTH CORP BEGAN DELVING INTO ACCOUNTING IRREGULARITIES THAT PROMPTED TWO TOP EXECUTIVES TO TEMPORARILY STEP ASIDE LAST WEEKEND FRANK LOBASSO WAS RALLYING THE TROOPS AT A SLIGHTLY DINGY FW WOOLWORTH STORE ON 34TH STREET HERE MR LOBASSO A 32YEAR COMPANY VETERAN WHO MANAGES THIS OUTPOST OF THE FADED FIVEANDDIME EMPIRE HAD GATHERED HIS CLERKS IN THE STORE'S COFFEE SHOP HIS VOICE RISING TO A SHOUT HE EXHORTED THEM TO FORGET ABOUT WHO MAY OR MAY NOT BE FOOLING AROUND WITH A BUNCH OF BOOKS CONCENTRATE ON THE CUSTOMER HE SAID AS THE MEETING ADJOURNED THE WORKERS STOOD JOINED HANDS AND TOOK A PLEDGE WE ARE THE WOOLWORTH COMPANY LET OUR PRIDE SHOW THE SMELL OF FRIED CHICKEN WAFTED THROUGH THE EARLYMORNING AIR BUT THE QUESTION OF WHO INDEED MIGHT HAVE BEEN FOOLING AROUND WITH THE BOOKS OR WHETHER WHAT HAPPENED WAS SIMPLY AN OVERSIGHT STILL HANGS HEAVY IT IS CASTING A PALL OVER A COMPANY THAT HAS ALWAYS BEEN KNOWN FOR ITS STRAIGHTARROW WAYS AND IT IS THREATENING TO DISRUPT A MAJOR OVERHAUL OF A RETAILING GIANT WHOSE ORIGINS DATE BACK TO 1879 WHEN FRANK WOOLWORTH OPENED HIS GREAT FIVE CENT STORE IN LANCASTER PA AS PART OF THE SWEEPING MAKEOVER 970 STORES MOSTLY MONEYLOSING WOOLWORTH AND KINNEY SHOE OUTLETS HAVE ALREADY BEEN SHUTTERED IN A PARTICULARLY BITTER TWIST THE COMPANY'S CAUTIOUS BYTHEBOOK HANDLING OF THE AFFAIR APPEARS TO BE MAKING MATTERS WORSE WOOLWORTH HAS SAID THE IRREGULARITIES WERE RELATIVELY SMALLSCALE AND WERE CORRECTED IN THE COMPANY'S FOURTH QUARTER ENDED JAN 29 YET THE BOARD'S CREATION OF A HEAVYWEIGHT INVESTIGATIVE TEAM LED BY A FORMER IRANCONTRA INVESTIGATOR ALONG WITH THE DEPARTURE OF THE TWO EXECUTIVES HAS PROMPTED HIGH ANXIETY AMONG SOME SUPPLIERS THAT THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM K LAVIN STEPPED ASIDE IS AN ADMISSION THAT THERE IS MORE GOING ON THAN ORIGINALLY STATED CONTENDS VINCENT CREO OF SOLO CREDIT SERVICE CORP A RETAIL CREDIT FIRM IN NEW YORK WHO SAYS HE HAS BEEN FIELDING FRANTIC CALLS FROM SUPPLIERS THIS IS NOT CALMING PEOPLE MR LAVIN AND THE OTHER MAN WHO STEPPED ASIDE TEMPORARILY CHIEF FINANCIAL OFFICER CHARLES T YOUNG SAY THEY HAVEN'T DONE ANYTHING WRONG INSIDERS SAY THEY LEFT LARGELY BECAUSE OF PRESSURE FROM WOOLWORTH'S BANKERS ONE EXECUTIVE CLOSE TO THE BOARD BELIEVES THE IRREGULARITIES PROBABLY WEREN'T INTENTIONAL BUT RESULTED FROM INVENTORY MISCALCULATIONS MADE BY US AND CANADIAN UNITS AS THEY SOLD OR LIQUIDATED HUGE NUMBERS OF STORES YET THE COMPANY'S EXTREME RESPONSE IN HAVING THE TWO MEN STEP DOWN HE SAYS IS CREATING A PUBLICRELATIONS NIGHTMARE IT'S ONE OF THE ALLTIME GREAT DEBACLES HE SAYS IT HASN'T BEEN HANDLED IN THE RIGHT WAY IF MR LAVIN ENDS UP BEING CLEARED HE ADDS WE'VE RUINED HIS REPUTATION FOR NO GOOD REASON OTHERS SUGGEST THE TWO MEN MAY NOT RETURN MY INSTINCT IS THIS IS THE FIRST STEP IN LAVIN'S PERMANENT DEPARTURE FROM THE COMPANY SAYS JANET MANGANO A RETAIL ANALYST WITH BURNHAM SECURITIES INC IN NEW YORK NEXT WEEK THE COMPANY IS EXPECTED TO NAME A FINANCIAL EXECUTIVE FROM ANOTHER FIRM AS INTERIM CHIEF FINANCIAL OFFICER AND SOME PEOPLE FAMILIAR WITH THE DETAILS SAY THEY EXPECT THE APPOINTMENT ULTIMATELY TO BECOME PERMANENT JITTERY INVESTORS AND SUPPLIERS APPARENTLY HAVEN'T BEEN CALMED BY WOOLWORTH'S INTERIM CHAIRMAN AND CEO BOARD MEMBER JOHN W ADAMS THE 69YEAROLD CANADIAN MADE HIS MARK AS HEAD OF A COMPANY THAT MAKES PLUMBING AND PETROLEUM EQUIPMENT VENDORS NEED ASSURANCE WOOLWORTH IS VIABLE THAT THE STORES ARE DOING WELL SAYS MS MANGANO BECAUSE MR ADAMS DOESN'T HAVE STRONG LINKS WITH SEVENTH AVENUE THE ANALYST ADDS I DON'T KNOW WHERE THAT MESSAGE IS GOING TO COME FROM WOOLWORTH IS SCRAMBLING TO APPEASE ITS INVESTORS BANKERS AND SUPPLIERS YESTERDAY IT RELEASED STRONG MARCH SALES FIGURES FOR THE FIVE WEEKS ENDED SATURDAY SALES WERE UP 105 AT US STORES OPEN AT LEAST A YEAR BECAUSE OF THE STRONG SALES I WOULDN'T BE SURPRISED IF PEOPLE FORGET ABOUT ALL THIS STUFF AND START FEELING GOOD ABOUT THE COMPANY AGAIN SAYS AN OPTIMISTIC DISTRICT MANAGER WOOLWORTH'S PREDICAMENT IS SURPRISING FOR THE UNABASHEDLY OLDFASHIONED COMPANY THE CHAIN HAS BUILT A REPUTATION AS A SOLID CORPORATE CITIZEN SEEMINGLY AS INTERESTED IN ITS CUSTOMERS AS IN PROFITS THOUGH IT HAS CLOSED WOOLWORTH STORES IN SMALLTOWN AMERICA IT HAS KEPT STORES ALIVE IN HARLEM AND OTHER INNERCITY NEIGHBORHOODS WHERE THEY ARE GENERALLY PROFITABLE AND BADLY NEEDED LATE LAST YEAR ITS FOOT LOCKER DIVISION WAS ONE OF THE LARGEST CONTRIBUTORS TO A NEW YORK PROGRAM IN WHICH GUNS COULD BE SWAPPED FOR GIFT CERTIFICATES EVEN ITS HEADQUARTERS IS A SHRINE TO A BYGONE ERA OF CORPORATE STABILITY INSTEAD OF FOLLOWING THE CORPORATE EXODUS TO THE SUBURBS FOLLOWING WORLD WAR II WOOLWORTH HAS PROUDLY REMAINED IN ITS ORIGINAL HEADQUARTERS ON BROADWAY IN LOWER MANHATTAN BUILT IN 1913 BY FRANK WOOLWORTH THE BUILDING WITH ITS ORNATE CHURCHLIKE SPIRES AND RICHLY DECORATED INTERIORS WAS DUBBED BY A NEW YORK CLERGYMAN OF THE DAY AS THE CATHEDRAL OF COMMERCE WOOLWORTH MAY BE ONE OF THE LAST GREAT INSULAR CORPORATE CULTURES IN AMERICA WHERE EXECUTIVES PUT DOWN ROOTS AND STAY MR LAVIN'S PREDECESSOR AS CHAIRMAN HAROLD E SELLS BEGAN IN THE 1940S AS A SHOE SALESMAN IN FORT SMITH ARK FOR KINNEY WHICH WOOLWORTH ACQUIRED IN 1965 MR LAVIN HAS WORKED AT WOOLWORTH SINCE 1981 MR YOUNG JOINED KINNEY IN 1971 BOTH MR SELLS 65 AND MR LAVIN 49 PROJECT A SLIGHTLY DATED IMAGE THEY ALWAYS LOOK LIKE MIDWESTERNERS WHO WERE TRANSPLANTED TO NEW YORK ONE ANALYST COMMENTS ANALYSTS RECALL LATEAFTERNOON MEETINGS WITH COMPANY EXECUTIVES AT HEADQUARTERS THAT ALWAYS ADJOURNED AT 430 FOR COCKTAILS IN AN ADJOINING ROOM BUT SOME SUGGEST THE COMPANY HAD BECOME TOO INSULAR IT'S A STIFF CULTURE SAYS R FULTON MACDONALD PRESIDENT OF INTERNATIONAL BUSINESS DEVELOPMENT CORP A RETAIL CONSULTANT THAT HAS WORKED WITH WOOLWORTH IT'S INBRED YOU DIDN'T HAVE CONTEMPORARY MERCHANDISE AND MARKETING SKILLS AND IT'S A VERY AUTOCRATIC ORGANIZATION WITH A KIND OF CULTURE THAT GENERALLY DOESN'T CREATE THE STIMULUS FOR CHANGE THAT CULTURE MADE IT DIFFICULT FOR MR LAVIN TO IMPOSE HIS IDEAS FOR A WHOLESALE MAKEOVER OF THE FIRM PEOPLE FAMILIAR WITH THE COMPANY SAY AFTER TAKING HIS POST IN JULY HE EMBARKED ON AN AMBITIOUS QUEST TO SHED UNPROFITABLE STORES WHILE SPEEDING EXPANSION OVERSEAS AND IN SPECIALTY RETAILING UNDER HIS LEADERSHIP WOOLWORTH WAS TRYING TO DUPLICATE THE SUCCESS OF ITS FOOT LOCKER CHAIN WITH A BROAD ARRAY OF SPECIALTY STORES SUCH AS SILK & SATIN LINGERIE STORES AND CUPPS FINE COFFEES GOURMET JAVA BARS IN AN INTERVIEW LAST FALL MR LAVIN PREDICTED WOOLWORTH WOULD BECOME DOMINANT IN SPECIALTY RETAILING DRIVEN BY WHAT HE CALLED HIS FOUR RISING STARS THESE ARE LADY FOOT LOCKER TARGETING 18 TO 24YEAROLD WOMEN CHAMPS SPORTS WHICH SELLS TEAMLOGO JACKETS NORTHERN REFLECTIONS WHICH SELLS WOMEN'S CASUAL WEEKEND WEAR AND AFTERTHOUGHTS A PURVEYOR OF COSTUME JEWELRY AND HANDBAGS AIMED AT TEENAGE GIRLS IN PURSUIT OF THAT STRATEGY MR LAVIN ORDERED THE WIDESPREAD STORE CLOSINGS THAT MEANT CUTTING 13000 FULL AND PARTTIME JOBS ABOUT 9 OF THE WORK FORCE THE COMPANY TOOK A PRETAX 630 MILLION CHARGE FOR INVENTORY WRITEDOWNS AND OTHER EXPENSES IN THE YEAR ENDED IN JANUARY THE MAGNITUDE OF THE CLOSINGS WHICH INCLUDED HEAVY LIQUIDATION OF MERCHANDISE MAY HAVE CONTRIBUTED TO WOOLWORTH'S ACCOUNTING MESS ANALYSTS AND ACCOUNTING EXPERTS SAY THE COMPANY HAS SAID IT WILL RESTATE QUARTERLY RESULTS FOR THE LATEST FISCAL YEAR WHEN YOU ARE DOING SO MUCH ADJUSTMENT IN INVENTORY I COULD SEE WHERE ERRORS TOOK PLACE A BOARD MEMBER SAYS THE FAST PACE OF THE CLOSINGS MAY HAVE BEEN A FACTOR TOO MR LAVIN DID IN THREE TO FOUR MONTHS WHAT HAD BEEN PLANNED FOR THREE TO FOUR YEARS SAYS BURNHAM'S MS MANGANO HE FELT THIS WAS HIS CHANCE TO TURN AROUND OPERATIONS AND THAT HE WOULD DO WHAT HE HAD TO DO TO RETURN WOOLWORTH TO ACCEPTABLE LEVELS OF PROFITABILITY FOR THE LATEST FISCAL YEAR WOOLWORTH REPORTED A NET LOSS OF 495 MILLION COMPARED WITH YEAREARLIER NET INCOME OF 280 MILLION REVENUE FELL 34 TO 963 BILLION LIKE MOST RETAILERS WOOLWORTH CAN'T CLOSE ITS STORES EVERY QUARTER TO COUNT MERCHANDISE AND INSTEAD ESTIMATES INVENTORY ON HAND WHEN THEY AREN'T ACTUALLY COUNTING INVENTORY THERE IS ALWAYS THE SUSCEPTIBILITY FOR INVENTORY MANIPULATION AND FOR FINANCIAL STATEMENTS TO BE MISLEADING SAYS HOWARD SCHILIT AN EXPERT IN ACCOUNTING SCAMS AND A PROFESSOR AT AMERICAN UNIVERSITY IN WASHINGTON THE IRREGULARITIES COULD BE INTENTIONAL OR COMPLETELY UNINTENTIONAL HE SAYS AT THE SAME TIME STORE MANAGERS SAY THEY WERE PUT UNDER PRESSURE TO BOOST PERFORMANCE A MIDWEST WOOLWORTH STORE MANAGER SAYS HE WAS FURIOUS AFTER ATTENDING A TENSE FEBRUARY DISTRICT MEETING IN PREVIOUS YEARS THEY USED THE MEETINGS TO FIRE YOU UP HE SAYS THIS TIME I GOT A LOT OF NEGATIVE VIBRATIONS FROM THE COMPANY MANAGERS WERE CALLED ON TO IMPROVE DAILY MAINTENANCE AND CUSTOMER SERVICE AND WERE GIVEN A LIST OF DETAILS THAT HAD TO BE FOLLOWED DOWN TO THE LETTER THIS MANAGER SAYS ALL THE CONTINGENCY TALK I CONSIDERED IT A VOCAL THREAT IF THE RULES AREN'T FOLLOWED IT WILL COST YOU YOUR JOB THE INTERNAL INVESTIGATION COMES AT A CRUCIAL TIME FOR WOOLWORTH IT IS IN THE MIDST OF SENSITIVE TALKS WITH LENDERS THE ACCOUNTING PROBLEM HIT JUST A FEW WEEKS AFTER WOOLWORTH BEGAN DISCUSSIONS WITH MORGAN GUARANTY TRUST CO OF NEW YORK NATIONAL WESTMINSTER BANK PLC AND CITIBANK ABOUT ARRANGING A NEW 15 BILLION CREDIT LINE THE CREDIT LINE REPLACES EXISTING BANK FINANCING THAT MATURES IN JUNE BUT IT IS BELIEVED TO BE ON HOLD UNTIL THE INQUIRY ENDS THE BANKS DECLINED TO COMMENT OR DIDN'T RETURN CALLS ON WEDNESDAY OF LAST WEEK THE DAY WOOLWORTH DISCLOSED THE INTERNAL INVESTIGATION REPRESENTATIVES OF THE THREE BANKS MET WITH MR LAVIN AND OTHER BOARD MEMBERS THE BANKERS BECAME ALARMED WHEN THEY WERE TOLD THAT THE INVESTIGATION FOCUSED AT LEAST IN PART ON POSSIBLE INVOLVEMENT BY MESSRS LAVIN AND YOUNG SAY PEOPLE FAMILIAR WITH THE MEETING THE BANKS WERE CONCERNED THAT SINCE THESE GUYS WERE PART OF THE INVESTIGATION AND THEY WERE STILL RUNNING THE COMPANY THAT THE INVESTIGATION NOT APPEAR LIKE A HASTILY DONE WHITEWASH SAYS A PERSON CLOSE TO THE BOARD THE BANKS THOUGHT IT WOULD BE BETTER IF DURING THE PROCESS THESE TWO GUYS STEPPED DOWN THE BANKERS WITH CITIBANK'S REPRESENTATIVES BEING THE MOST ADAMANT MADE THEIR CASE TO BOARD MEMBERS WHO ORIGINALLY DIDN'T THINK MR LAVIN WOULD HAVE TO STEP DOWN DURING AN INVESTIGATION THIS PERSON SAYS BUT AS THE WEEKEND APPROACHED THIS PERSON ADDS AND AS NEWS REPORTS SAID THAT SKITTISH WOOLWORTH SUPPLIERS MIGHT HOLD BACK SHIPMENTS THE BOARD BEGAN TO RECOGNIZE YOU HAVE TO MAKE SURE THE PROCESS IS AND APPEARS TO BE CORRECT AT A BOARD MEETING LATE SATURDAY NIGHT THE TWO EXECUTIVES AGREED TO MOVE ASIDE PENDING THE INVESTIGATION'S RESULTS ONE BANKER FAMILIAR WITH THE SITUATION SAYS THE BANKS DIDN'T SPECIFICALLY ASK FOR MESSRS LAVIN AND YOUNG TO STEP DOWN THE BANKER ADDS I THINK THE BANKS DID RECOMMEND TO THE COMPANY THAT THEY TRY TO MOVE QUICKLY TO GET IT RESOLVED NEWS OF THE IRREGULARITIES HAS BROUGHT LAWYERS AND INVESTORS OUT OF THE WOODWORK TRIGGERING NEARLY A DOZEN SHAREHOLDER LAWSUITS THEY ALLEGE AMONG OTHER THINGS THAT SENIOR MANAGEMENT ATTEMPTED TO INDUCE INVESTORS TO BUY STOCK AT ARTIFICIALLY INFLATED PRICES OTHER SUITS ALLEGE SUBSTANTIAL INSIDER SELLING BY OFFICERS WHILE IN POSSESSION OF MATERIAL ADVERSE INFORMATION ABOUT WOOLWORTH ITS LACK OF INTERNAL CONTROLS AND ITS MARGINS SUITS CAME FIRST FROM INDIVIDUAL SHAREHOLDERS A FAIRLY TYPICAL OCCURRENCE FOLLOWING A SHARP DECLINE IN A STOCK'S PRICE ON THE DISCLOSURE OF NEGATIVE NEWS BUT YESTERDAY THE STATE OF FLORIDA SUED IN FEDERAL COURT IN WHITE PLAINS NY ALSO CLAIMING EXECUTIVES HAD WITHHELD ADVERSE INFORMATION THE SUIT WAS FILED ON BEHALF OF THE STATE BOARD OF ADMINISTRATION OF FLORIDA WHICH ADMINISTERS THE PENSION FUND FOR STATE EMPLOYEES THE STATE OWNS 432500 SHARES OF WOOLWORTH INDEED SEVERAL SENIOR WOOLWORTH EXECUTIVES NOT INCLUDING MR LAVIN SOLD LARGE CHUNKS OF THEIR STOCKHOLDINGS IN THE MONTHS PRIOR TO LAST WEEK'S NEWS ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS WOOLWORTH SHARES HAVE PLUMMETED 40 SINCE DEC 31 THE COMPANY WON'T COMMENT ON PENDING LITIGATION WOOLWORTH'S BOARD INADVERTENTLY MAY HAVE CAUSED EVEN MORE INVESTOR ANXIETY BY SUMMONING SOME BIG GUNS FOR ITS INVESTIGATION INCLUDING NEW YORK LAW FIRM PAUL WEISS RIFKIND WHARTON & GARRISON AND ACCOUNTING FIRM KPMG PEAT MARWICK THE PAUL WEISS PARTNER IN CHARGE OF THE INVESTIGATION IS MARK A BELNICK WHO IN 1987 WAS A KEY MEMBER OF THE STAFF OF THE SENATE SELECT COMMITTEE INVESTIGATING THE IRANCONTRA AFFAIR WHILE BOARD MEMBERS WRESTLE WITH THE INVESTIGATION AN EVEN MORE PRESSING CONCERN IS WOOLWORTH'S FUNDAMENTAL BUSINESS THROUGH THE 1980S WOOLWORTH HAD RELIED ON THE ROBUST GROWTH OF ITS SPECIALTY DIVISION MAINLY THE FOOT LOCKER CHAIN AND ITS SPINOFFS LADY FOOT LOCKER AND KIDS FOOT LOCKER MR LAVIN HAD BEEN DEPENDING HEAVILY ON SPECIALTY STORES FOR WOOLWORTH'S FUTURE BUT IN 1993 AS SNEAKER SALES SLOWED IN THE FACE OF COMPETITION FROM RUGGED OUTDOOR FOOTWEAR ANALYSTS SAY FOOT LOCKER WAS FORCED INTO HEAVY DISCOUNTING TO MOVE MERCHANDISE SPECIALTY OPERATING PROFITS BEFORE CHARGES AND SPECIAL ITEMS PLUNGED 62 TO 159 MILLION IN THE LATEST FISCAL YEAR THE QUESTION WE MAY ASK OURSELVES ONE BOARD MEMBER SAYS IS DO WE HAVE THE RIGHT MANAGEMENT TO RUN OUR RETAIL BUSINESS STEVEN LIPIN CONTRIBUTED TO THIS ARTICLE J CARTER BACOT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BANK OF NEW YORK CO JOHN J MACKOWSKI FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ATLANTIC MUTUAL INSURANCE CO 9404080186 940408 ECONOMY FIRMS INCREASE BANK FINANCING FOR EXPANSION PICKUP IN LOANS IS FUELING US ECONOMY GIVING BANKERS NEEDED FUNDS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER A LONG HIATUS BUSINESSES ARE FINALLY INCREASING THEIR BORROWINGS FROM BANKS TO HELP FINANCE EXPANSION PLANS ADDING FUEL TO THE ECONOMY AND SOME MUCHNEEDED REVENUE TO THE BANKING INDUSTRY SOME OF THE PICKUP IS COMING FROM THE MULTIBILLIONDOLLAR LOANS USED TO FINANCE THE RECENT SPATE OF ACQUISITIONS SUCH AS NORTHROP CORP'S 28 BILLION BANK FINANCING FOR ITS ACQUISITION OF GRUMMAN CORP COMPANIES ARE ALSO RAISING FUNDS TO EXPAND THEIR OPERATIONS OR BUILD INVENTORY AFTER THE DEBTFUELED BINGE OF THE 1980S BUSINESSES HAVE BEEN WARY ABOUT ADDING DEBT TO THEIR BALANCE SHEETS THE UNWILLINGNESS OF COMPANIES TO BORROW TEMPERED ECONOMIC GROWTH SINCE FEW COMPANIES WERE ADDING CAPACITY OR BUILDING UP INVENTORIES BUT STRONG CORPORATE EARNINGS AND GROWING DEMAND FOR PRODUCTS HAVE PROMPTED SOME COMPANIES TO TAKE ON HEAVIER DEBT LOADS ALTHOUGH MANY COMPANIES HAVE BEEN TAPPING THE BOND MARKET IN RECENT YEARS BANK LOANS ARE OFTEN USED FOR SHORTERTERM NEEDS SUCH AS BUILDING UP INVENTORIES GIVEN THAT LENDING HAS LAGGED ECONOMIC GROWTH THE PICKUP IN BANK LOANS VALIDATES THAT THE ECONOMY HAS REACHED A SELFSUSTAINING MOMENTUM SAYS JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO THE SURGE IN LOAN DEMAND IS COMING FROM BOTH LARGE AND SMALL COMPANIES ALTHOUGH IT VARIES IN DIFFERENT REGIONS BUSINESSLOAN VOLUME IS STILL LAGGING IN NEW YORK AND SAN FRANCISCO WHILE IT IS CLIMBING BRISKLY IN CLEVELAND DALLAS AND PHILADELPHIA FEDERAL RESERVE DATA SHOW OVERALL BUSINESS LOANS AT THE NATION'S BIGGEST BANKS HAVE RISEN NEARLY 20 BILLION TO JUST UNDER 290 BILLION FROM SEPTEMBER THROUGH MARCH 23 THE FED SAYS EVEN THE RECENT RISE IN INTEREST RATES ISN'T HAVING ANY NEGATIVE EFFECT ON LOAN DEMAND AT LEAST FOR THE MOMENT IN BOTH 1983 AND 1988 FOR INSTANCE LENDING PICKED UP EVEN AS INTEREST RATES ROSE I DON'T THINK THE FED HAS MOVED AGGRESSIVELY ENOUGH THAT IT WOULD DETER BUSINESS BORROWING SAID JOHN LONSKI OF MOODY'S INVESTORS SERVICE INC EVEN COMPANIES WORRIED ABOUT HIGHER RATES ARE TURNING TO DERIVATIVE INSTRUMENTS SUCH AS SWAPS WHICH ALLOW THEM TO LOCK IN THEIR FINANCING RATE NOW PLYGEM INDUSTRIES INC A NEW YORK COMPANY THAT SELLS HOMEIMPROVEMENT PRODUCTS LOCKED IN ABOUT HALF OF ITS NEW 200 MILLION BANK FINANCING THROUGH THE USE OF DERIVATIVES IT HAS ADDED CAPACITY TO PLANTS IN WISCONSIN TENNESSEE AND OHIO THE FINANCING REPLACED ABOUT 175 MILLION IN EXISTING CREDIT LINES COMBINED WITH AN ALREADY GROWING CONSUMER LOAN BUSINESS THE UPTICK IN BUSINESS LENDING SHOULD HELP BANKS' REVENUE PICTURE WHICH HAS BEEN FACING SHRINKING PROFIT MARGINS BETWEEN BORROWING RATES AND EARNINGS FROM LOANS AND INVESTMENTS BANKS ARE CERTAINLY COMPETING AGGRESSIVELY FOR NEW BUSINESS AS WELL AS TRYING TO KEEP EXISTING CLIENTS EVEN THOUGH DATAMETRICS CORP A CHATSWORTH CALIF DEFENSE SUBCONTRACTOR DIDN'T WANT TO EXPAND ITS DEBT LOAD IT WAS ABLE TO SHAVE THE INTEREST RATE IT PAYS ON A LOAN TO 025 OF A PERCENTAGE POINT FROM ONE FULL PERCENTAGE POINT OVER THE PRIME RATE WHEN IT ROLLED OVER ITS 3 MILLION CREDIT LINE FROM SANWA BANK LAST FALL WE GAVE THEM SOME HINTS ABOUT TALKING TO OTHER BANKS AND THEY CAME IN WITH A NEW PROPOSAL SAID JACK VAN BUREN DATAMETRICS CHIEF FINANCIAL OFFICER ALL OF THESE BANKS HAVE A GOOD IDEA OF WHAT THE COMPETITIVE MARKET IS LIKE OUT THERE HOLDERS OF US TREASURY BONDS MIGHT HAVE CAUSE TO WORRY ABOUT THE RISING DEMAND FOR BANK LOANS THAT DEMAND HAS ALREADY SLOWED AND COULD HALT BANKS' PURCHASES OF GOVERNMENT SECURITIES EXPERTS SAY THAT COULD BE BAD NEWS FOR THE BOND MARKET SINCE BANKS HAVE BEEN AMONG THE BIGGEST BUYERS OF BONDS INCREASING THEIR HOLDINGS OF GOVERNMENTRELATED SECURITIES BY 282 BILLION SINCE THE END OF 1990 IT'S THE TYPE OF NEWS THAT KEEPS TREASURY NOTEHOLDERS AWAKE AT NIGHT SAID MR LONSKI OF MOODY'S OF COURSE THE REBOUND IN LENDING COULD FIZZLE AS IT HAS DONE A FEW TIMES IN RECENT YEARS MOREOVER THE LENDING IS UNLIKELY TO APPROACH THE DOUBLEDIGIT ANNUAL GROWTH RATES OF THE 1980S AND HAS REBOUNDED FROM VERY LOW LEVELS AND DESPITE A CYCLICAL UPTURN THERE REMAINS A LONGTERM SHIFT AWAY FROM LOANS AS MANY MIDSIZE COMPANIES FIND THEY CAN TAP THE STOCK AND BOND MARKETS THE UPTICK ITSELF HAS SURPRISED SOME ANALYSTS AND OTHERS WHO HAD BEEN PREDICTING CONTINUED SLUGGISHNESS IN THE SOUTH NEW ORLEANSBASED HARRAH'S JAZZ CO WHICH IS ONETHIRD OWNED BY MEMPHISBASED PROMUS CORP IS RAISING 200 MILLION IN NEW BANK FINANCING AS WELL AS 425 MILLION IN BONDS TO HELP FINANCE THE CONSTRUCTION OF A NEW CASINO CBI ADDED MORE THAN 300 MILLION IN DEBT LAST YEAR FROM BANKS AND BONDS AND WILL LIKELY ADD ANOTHER 30 MILLION TO 50 MILLION THIS YEAR IN EITHER COMMERCIAL PAPER OR SHORTTERM BANK BORROWINGS SAYS GEORGE SCHUEPPERT EXECUTIVE VICE PRESIDENT WHILE THE COMMERCIAL PAPER MARKET IS ABOUT 010 OF A PERCENTAGE POINT CHEAPER THAN SHORTTERM BANK LINES BANKS ARE MORE FLEXIBLE ABOUT THE TERMS AND MATURITIES HE SAYS WILLIAM DICKINSON MANAGER OF CHASE MANHATTAN BANK CORP'S NEW ENGLAND MIDDLEMARKET BANKING SAYS THE BANK IS BENEFITING FROM THE BORROWING UPTURN HIS GROUP HAS MADE 130 MILLION IN NEW LOANS IN THE FIRST QUARTER COMPARED WITH 330 MILLION FOR ALL OF LAST YEAR ONE CLIENT IS MULTICARE COS A NEW JERSEYBASED NURSINGHOME CHAIN WHICH RECENTLY OBTAINED AN 85 MILLION REVOLVING CREDIT LINE PART OF THE LOAN WAS USED FOR A RECENT ACQUISITION AND TO PAY OFF HIGHCOST BONDS BUT THE COMPANY ALSO NEEDED FINANCING TO BUILD ITS GROWING BUSINESS THAT CATERS TO MORE MEDICALLY DEMANDING PATIENTS THE COMPANY HAS ADDED EMPLOYEES IN RECENT MONTHS DEMAND FOR OUR SERVICES IS GROWING SAID DANIEL STRAUS CHIEF EXECUTIVE OFFICER COMPANIES THAT HAVE ACCESS TO FINANCING WILL BENEFIT TREMENDOUSLY 9404080185 940408 NASDAQ PLANS CHANGE IN RULES ON CRITERIA FOR DELISTING CONCERNS WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS PROPOSED RULE CHANGES THAT WOULD CLARIFY THE NASD'S BROAD DISCRETION TO DROP COMPANIES FROM LISTING ON NASDAQ THE CHANGE WOULD ALLOW THE NASD TO REVOKE THE LISTING PRIVILEGE FOR A COMPANY'S SECURITIES EVEN THOUGH THE SECURITIES MEET ALL ENUMERATED CRITERIA FOR INITIAL OR CONTINUED INCLUSION IN THE NASDAQ SYSTEM ACCORDING TO A DRAFT OF THE RULE THE NASD SAID THE CHANGE WOULD BRING NASDAQ'S RULES MORE IN LINE WITH THE RULES COVERING COMPANIES LISTED ON THE AMERICAN AND NEW YORK STOCK EXCHANGES THE CHANGE REQUIRES APPROVAL BY THE SECURITIES AND EXCHANGE COMMISSION THE PROPOSAL REPLACES AN EARLIER NASD REQUEST FOR THE POWER TO DELIST COMPANIES WHEN AN OFFICER OR DIRECTOR WAS FOUND TO HAVE PREVIOUSLY VIOLATED SECURITIES LAWS SECURITIES LAWYERS OBJECTED TO THOSE SOCALLED BAD BOY CRITERIA PROMPTING THE NASD TO PROPOSE THE LESSSPECIFIC RULE CHANGE SPELLING OUT ITS DISCRETIONARY AUTHORITY 9404080184 940408 TECHNOLOGY & HEALTH RACE FOR TOMATOES THAT LAST LONGER GETS NEW ENTRANT PIONEER'S NEW VARIETY USES CONVENTIONAL TECHNIQUES RATHER THAN GENE SPLICING BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL DES MOINES IOWA HERE COMES SUPER LIFE THE NEWEST ENTRANT IN THE RACE FOR A LONGERLASTING TOMATO WHILE WALL STREET HAS BEEN BETTING MILLIONS ON BETTER TOMATOES CREATED IN GENESPLICING LABS THE WORLD'S LARGEST SEEDCORN COMPANY USING MORECONVENTIONAL BREEDING TECHNIQUES HAS BEEN QUIETLY GROWING ITS OWN IMPROVED VARIETIES IN SUNNY FIELDS OVERSEAS TOMORROW IN A FIELD NEAR HOMESTEAD FLA PIONEER HIBRED INTERNATIONAL INC IS EXPECTED TO UNVEIL THE RESULTS CALLED SUPER LIFE TO COMMERCIAL GROWERS A PRODUCT OF EIGHT GENERATIONS OF PLANT HYBRIDIZATION SUPER LIFE IS TOUTED AS BEING SLOWER TO SPOIL THAN REGULAR TOMATOES AND RIVALING GENETICALLY ENGINEERED VERSIONS IN BEING ABLE TO RIPEN ON THE VINE THEN REMAIN FIRM AND TASTY WEEKS AFTER PICKING THOSE CHARACTERISTICS ARE SEEN AS A BOON TO GROWERS AND PACKERS SUPPLYING THE NATION'S SUPERMARKETS AND PRODUCE STANDS WITH FRESH TOMATOES MEANWHILE THE BESTKNOWN BIOTECH VARIETY CALGENE INC'S FLAVR SAVR TOMATO WHICH HAS STIRRED BROAD INVESTOR INTEREST AWAITS GOVERNMENT APPROVAL AND AN UNCERTAIN FUTURE FROM BOYCOTTTHREATENING OPPONENTS WHEN IT DOES GET TO MARKET TODAY A FOOD AND DRUG ADMINISTRATION SCIENTIFIC PANEL IS EXPECTED TO CONCLUDE A THREEDAY REVIEW OF THE CALGENE TOMATO MONTHS AFTER THE COMPANY THOUGHT IT WOULD BE SHIPPING IT TO MARKET ALTHOUGH THE FDA HAS SAID IT WOULDN'T CHALLENGE GENETICALLY ENGINEERED PRODUCE CALGENE WANTS FLAVR SAVR'S GENETIC MANIPULATION APPROVED AS A FOOD ADDITIVE PIONEER HAS AVOIDED THE APPROVAL PROCESS BY STICKING TO TRADITIONAL PLANTBREEDING TECHNIQUES IN HYBRIDIZATION PLANTS WITH DESIRABLE TRAITS ARE MATED UNTIL THE IDEAL OFFSPRING RESULTS UNLIKE CALGENE AND OTHER GENETICENGINEERING CONCERNS PIONEER DOESN'T INTEND TO MARKET ITS LONGLIFE TOMATOES ITSELF BUT RATHER SELL THE SEED TO GROWERS A STRATEGY IT HAS SUCCESSFULLY EMPLOYED WITH HYBRID CORN AND OTHER FEED GRAINS SUPER LIFE ISN'T THE FIRST SLOWTOROT CROSSBRED TOMATO ISRAELIDEVELOPED GREENHOUSEGROWN VARIETIES ARE SOLD IN EUROPE AND A NEW JERSEY COMPANY DNA PLANT TECHNOLOGY CORP USED A COMBINATION OF BREEDING AND CULTURING TO DEVELOP A PREMIUMPRICED VERSION SOLD IN MIDATLANTIC SUPERMARKETS BUT PIONEER'S IS THE FIRST EXTENDEDLIFE SEED DEVELOPED FOR COMMERCIAL GROWERS WHO SUPPLY MOST OF THE NATION'S FRESH TOMATO CROP KETCHUP AND PIZZASAUCE PROCESSORS DON'T REQUIRE LONGLIFE VARIETIES NOR DOES PIONEER SEE A MARKET AMONG AMATEUR GARDENERS SINCE MOST DAMAGE TO TOMATOES OCCURS DURING SHIPMENT LONGERLIFE TOMATOES ARE PARTICULARLY APPEALING TO COMMERCIAL GROWERS WITH A TOMATO THAT CAN RIPEN AND REMAIN ON THE VINE FOR DAYS GROWERS CAN BETTER TIME THEIR HARVESTS TO MARKET PRICES WHICH OFTEN FLUCTUATE SIGNIFICANTLY THEY ALSO CAN REDUCE THE COST OF HARVESTING WHICH MUST BE DONE BY HAND PERISHABILITY IS A TREMENDOUS PRESSURE ON THEM SAID HERB ECKHOUSE DIRECTOR OF PIONEER'S VEGETABLE GENETICS UNIT WHICH DEVELOPED THE SUPER LIFE LINE SUCH VARIETIES SHOULD DRAMATICALLY REDUCE SPOILAGE WHICH NOW REQUIRES PERHAPS 15 OF THE CROP TO BE THROWN AWAY HE SAID WHILE PIONEER SET OUT TO DEVELOP THE SUPER LIFE TOMATO IN 1989 THE INITIAL BREEDING WORK HAD BEGUN 15 YEARS EARLIER UNDER THE SUPERVISION OF PAT CRILL A FORMER UNIVERSITY OF FLORIDA SCIENTIST WHO NOW WORKS FOR THE COMPANY WHERE HE IS SOMETIMES CALLED DR TOMATO THOSE EATING A SUPER LIFE TOMATO PROBABLY COULDN'T TELL THE DIFFERENCE BETWEEN IT AND A NORMAL STOREBOUGHT TOMATO DR CRILL SAID THE DIFFERENCE IS THE WAY IT ARRIVES ON YOUR PLATE PIONEER IS WORKING TO MAKE THE CURRENT SUPER LIFE TOMATO AN EVEN EARLIERMATURING MORE DISEASERESISTANT AND HIGHERYIELDING PLANT COMPANY OFFICIALS SAID IT ALSO IS DEVELOPING SLOWERTOSPOIL PEPPERS MELONS SQUASH AND CARROTS SOME OF WHICH COULD BE IN SUPERMARKETS LATER THIS YEAR MR ECKHOUSE SAID 9404080183 940408 STARBUCKS POSTS 68 RISE IN SALES SEATTLE STARBUCKS CORP A COFFEE RETAILER REPORTED SALES OF 232 MILLION FOR THE FIVEWEEK PERIOD ENDING APRIL 3 AN INCREASE OF 68 FROM THE YEARAGO PERIOD SALES AT STORES OPEN AT LEAST A YEAR JUMPED 9 FOR THE PERIOD COMPARED WITH A YEAR AGO 9404080182 940408 MOTHERS WORK SALES DOUBLED PHILADELPHIA MOTHERS WORK INC A RETAILER OF UPSCALE MATERNITY CLOTHING SAID MARCH SALES MORE THAN DOUBLED TO 56 MILLION FROM 27 MILLION WHILE COMPARABLESTORE SALES ROSE 91 THE COMPANY OPENED FOUR NEW STORES DURING THE MONTH BRINGING THE TOTAL TO 142 9404080181 940408 ROSS STORES REPORTS RISE IN SALES NEWARK CALIF ROSS STORES INC AN OFFPRICE RETAILER REPORTED SALES OF 116 MILLION FOR THE FIVEWEEK PERIOD ENDED APRIL 2 AN INCREASE OF 18 FROM THE YEARAGO PERIOD SALES AT STORES OPEN AT LEAST A YEAR INCREASED 11 IN THE PERIOD FROM THE YEAR BEFORE 9404080180 940408 SALES AT GYMBOREE INCREASE 44 BURLINGAME CALIF GYMBOREE CORP A CHILDREN'S APPAREL RETAILER SAID ITS SALES FOR THE FIVEWEEK PERIOD ENDED APRIL 3 ROSE 44 TO 154 MILLION COMPARED WITH THE YEARAGO PERIOD SALES AT STORES OPEN AT LEAST A YEAR ROSE 11 FROM THE SAME PERIOD LAST YEAR 9404080179 940408 RISE IN SALES FOR 50OFF STORES SAN ANTONIO DISCOUNT RETAILER 50OFF STORES INC SAID ITS SALES AT STORES OPEN AT LEAST A YEAR ROSE 76 IN THE FOUR WEEKS ENDED MARCH 25 COMPARED WITH A YEAR EARLIER THE COMPANY SAID TOTAL SALES IN THE PERIOD WERE UP 51 TO 144 MILLION FROM 137 MILLION A YEAR EARLIER 9404080178 940408 WORLD MARKETS SHARE PRICES GAIN 1 IN TOKYO FINISH MIXED IN LONDON BUT CONTINUE TO CLIMB IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS GAINED 1 THURSDAY AS A LATE BURST OF ARBITRAGERELATED BUYING SENT PRICES SURGING AFTER THEY HAD DRIFTED IN NARROW RANGES BUT VOLUME REMAINED THIN LONDON SHARES WERE MIXED BECAUSE OF CONCERNS ABOUT BRITISH INTEREST RATES AND AN EARLY RETREAT ON WALL STREET BUT FRANKFURT EQUITIES CONTINUED TO RALLY ON INVESTORS' INCREASING OPTIMISM ABOUT THE GERMAN ECONOMY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11276 UP 059 REFLECTING HIGHER MARKETS IN ALL REGIONS FOOTWEAR STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 8889 UP 201 OR 23 WITH LA GEAR OF THE US POSTING A 93 GAIN IN ITS LOCAL CURRENCY WATER UTILITIES STOCKS TRAILED AT 11607 DOWN 207 OR 18 WITH LYONNAISE DES EAUX OF FRANCE SLIDING 31 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 13353 POINTS WEDNESDAY CLIMBED 19424 TO 1989098 IN TRADING FRIDAY IN TOKYO THE NIKKEI EASED 2851 POINTS TO CLOSE THE MORNING SESSION AT 1986247 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 260 MILLION SHARES DOWN FROM 3404 MILLION SHARES A DAY EARLIER GAINERS SWAMPED LOSERS 664356 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 1158 POINTS WEDNESDAY ADDED 1278 TO 161319 FOR MOST OF THE DAY INSTITUTIONAL INVESTORS MADE FEW MOVES AND INDIVIDUALS SHOPPED AMONG SMALL ISSUES LEAVING MAJOR INDEXES TO MEANDER IN A NARROW RANGE THE NIKKEI HIT ITS INTRADAY LOW OF 1958772 IN THE LATE MORNING AND MOVED UP TO ITS SESSION PEAK OF 1994609 LATE IN THE DAY A DROP IN THE JAPANESE BOND MARKET FOLLOWING A NEWS REPORT OF RUMORS THAT THE BANK OF JAPAN WOULD INCREASE ITS OFFICIAL DISCOUNT RATE CONTRIBUTED TO THE LATE SURGE AS INVESTORS SHIFTED THEIR FUNDS INTO STOCKINDEX FUTURES REVERSING THE TREND OF THE PAST TWO MONTHS OF HEAVY BUYING OF THE TOKYO MARKET'S LARGEST ISSUES INVESTORS PARTICULARLY THOSE FROM OVERSEAS TURNED THEIR FOCUS TO SMALLCAPITALIZATION SHARES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100STOCK INDEX SLIPPED 25 POINTS TO 31290 THE FT 30STOCK INDEX ROSE 20 POINTS TO 24749 VOLUME SHRANK TO 7124 MILLION SHARES FROM 9442 MILLION SHARES A DAY EARLIER LONDON PRICES FELL EARLY AS DATA SHOWING A STRONGERTHANEXPECTED RISE IN BRITISH INDUSTRIAL PRODUCTION CRUSHED HOPES FOR A CUT SOON IN THE BASE LENDING RATE BUT THE FUTURES AND EQUITIES MARKETS BECAME OVERSOLD AND BOUNCED BACK THEN NEW YORK STOCKS WEAKENED IN EARLY DEALINGS BUT MANAGED TO TRIM THOSE LOSSES BY THE TIME THE LONDON BOURSE CLOSED VOLUME LIGHTENED AS FUND MANAGERS STAYED ON THE SIDELINES AWAITING DIRECTION AS THE NEW QUARTER BEGINS IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1021 POINTS TO 220141 NEAR THE INTRADAY HIGH OF 220519 THE MARKET GAUGE HAS RISEN 32 THIS WEEK AND INVESTORS WERE CHEERED THAT IT FINISHED YESTERDAY ABOVE A PERCEIVED TECHNICAL BARRIER OF 2200 FOR THE FIRST TIME SINCE MIDJANUARY SENTIMENT ALSO WAS BOOSTED BY DATA THAT INDICATED THE GERMAN RECOVERY FROM RECESSION HAS TAKEN HOLD IN WESTERN GERMANY MANUFACTURING ORDERS WERE BETTER THAN EXPECTED AND INDUSTRIAL OUTPUT ROSE IN FEBRUARY WHILE THE REGION'S MARCH JOBLESS RATE EASED ADDING TO THE OPTIMISM FROM THE GERMAN CENTRAL BANK'S EASING OF AN INTEREST RATE A DAY EARLIER IN PARIS FOLLOWING A SEESAW SESSION SHARES FINISHED LOWER INFLUENCED DURING AFTERNOON DEALINGS BY EARLY DOWNTURNS ON WALL STREET AND IN THE BOND MARKET INVESTORS SOUGHT CLUES ABOUT WHETHER THE FRENCH ECONOMY HAS GAINED ANY MOMENTUM AND WERE DISTRACTED BY SIGNS THAT THE GOVERNMENT CONTINUED TO HAVE PROBLEMS CONTROLLING SOCIAL CONFLICTS AS A PUBLIC TRANSIT STRIKE HALTED MOST PARISAREA TRAIN SERVICE IN AMSTERDAM STOCKS ENDED BROADLY MIXED AFTER NEW YORK'S SOFTNESS PULLED THE DUTCH MARKET DOWN FROM HIGHER MIDDAY LEVELS AND STEADY BOND PRICES AND A FIRMER DOLLAR FAILED TO PRODUCE ANY SUPPORT FOR THE BOURSE IN MILAN STOCKS INCLUDING THOSE TRADED ELECTRONICALLY JUMPED 15 IN HEAVY TRADING BUYING INTEREST WAS SO STRONG THAT TRADE EXECUTIONS FREQUENTLY LAGGED BEHIND ORDERS DURING MUCH OF THE DAY WHILE ITALIAN INSTITUTIONS HAD BOUGHT HEAVILY EARLIER IN THE WEEK INDIVIDUAL AND FOREIGN INVESTORS LEAPED IN TO SPUR THE UPWARD MOMENTUM IN MADRID SHARES FINISHED LITTLE CHANGED AFTER THE WEAKER OPENING ON WALL STREET ERODED MOST OF THE SPANISH MARKET'S EARLY MODERATE GAINS IN STOCKHOLM EQUITIES ROSE IN CHOPPY TRADING AS HIGHER BOND YIELDS TOOK THE EDGE OFF THE MARKET'S RECENT REBOUND PRICES OPENED STEADY TO LOWER FIRMED CONSIDERABLY BY MIDDAY ONLY TO FALL BACK FROM HIGHS IN LATE TRADING PARTLY BECAUSE OF RISING INTEREST RATES IN ZURICH STOCKS JUMPED 1 IN ACTIVE TRADING LED BY BANKING AND INSURANCE ISSUES WHICH INVESTORS ESPECIALLY THOSE FROM THE US DECIDED WERE UNDERVALUED CASH ALSO WAS ATTRACTED TO EQUITIES BY A GROWING CONVICTION THAT EUROPEAN INTEREST RATES STILL HAVE ROOM TO DECLINE FURTHER IN COMING MONTHS IN SYDNEY WHERE INVESTORS CONTINUED TO LOOK TO WALL STREET FOR DIRECTION SHARES TRADED QUIETLY IN A NARROW BAND BEFORE CLOSING SLIGHTLY HIGHER IN HONG KONG STOCKS GAINED IN AN UNSTEADY BUT QUIET SESSION WITH ALL MAJOR SECTORS ENDED HIGHER THOUGH BY WIDELY VARYING DEGREES WEDNESDAY'S LACK OF DIRECTION IN NEW YORK STOCKS FAILED TO PROVIDE ANY LEADERSHIP FOR THE HONG KONG MARKET WHERE FEW FRESH FACTORS EMERGED IN SINGAPORE EQUITIES FELL IN SLOW LIGHT DEALINGS AS ATTENTION REMAINED MIRED IN INTERESTRATE CONCERNS IN KUALA LUMPUR THE MAIN INDEX EDGED UP BUT THE BROADER MARKET SOFTENED IN THIN ACTIVITY AS LIMITED SUPPORT FOR SOME BLUE CHIPS FAILED TO PROP UP THE BOURSE IN SEOUL PRICES ENDED MIXED WITH A SELLING SPREE IN THE FINAL MINUTES OF THE SESSION WIPING OUT EARLIER GAINS IN TAIPEI AFTER THREE DAYS OF ADVANCES PROFITTAKING PULLED THE BENCHMARK INDEX DOWN INTO NEGATIVE TERRITORY IN THE LAST HOUR OF DEALINGS IN MANILA SHARES SLUMPED 18 IN LIGHT VOLUME LED BY A SELLOFF IN THE TELECOMMUNICATIONS SECTOR IN MEXICO CITY STOCKS ROSE LIFTED BY BARGAINHUNTERS AFTER A SEESAW SESSION BECAUSE OF LINGERING POLITICAL UNCERTAINTIES SINCE THE RECENT ASSASSINATION OF A MEXICAN PRESIDENTIAL CANDIDATE AMONG CORPORATE DEVELOPMENTS IN FRANKFURT DAIMLERBENZ FELL 4 MARKS TO 86850 MARKS 50660 THE AUTO AEROSPACE AND TECHNOLOGY COMPANY CUT ITS DIVIDEND 38 TO 8 MARKS 467 A SHARE THE FIRST REDUCTION IN A QUARTER CENTURY AND THE THIRD IN DAIMLER'S POSTWAR HISTORY THE CUT TO ACCOMMODATE SEVERANCE COSTS OF LAYOFFS IS SIGNIFICANTLY DEEPER THAN ANALYSTS EXPECTED IN PARIS CERUS PLUNGED 78 FRENCH FRANCS OR 57 TO 129 FRANCS 2199 THE FRENCH HOLDING COMPANY WHICH GROUPS THE NONITALIAN ASSETS OF THE FINANCIER CARLO DE BENEDETTI UNVEILED PLANS TO RAISE 858 MILLION FRANCS 14626 THROUGH A RIGHTS ISSUE OFFERING HOLDERS ONE NEW SHARE AT 100 FRANCS FOR EVERY THREE HELD 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 9404080177 940408 WHO'S NEWS CHRYSLER CORP CHRYSLER CORP HIGHLAND PARK MICH JOHN E HERLITZ 51 YEARS OLD EXECUTIVE DIRECTORPRODUCT DESIGN WAS NAMED VICE PRESIDENTPRODUCT DESIGN 9404080176 940408 INTERNATIONAL WORLD ECONOMY JAPAN PLEASE NOTE FOREIGN INVESTMENT IS REALLY GOOD FOR A NATION'S ECONOMY BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOREIGN INVESTMENT IS GOOD FOR YOU THE ECONOMISTS SAY AND MORE OF IT IS EVEN BETTER THIS IS THE UNSURPRISING CONCLUSION IN A FORTHCOMING REPORT FROM THE PARISBASED ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT A 24MEMBER ASSOCIATION OF THE WORLD'S LEADING MARKET ECONOMIES OECD RESEARCHERS FOUND THAT OUTSIDE INVESTMENT BRINGS ENORMOUS BENEFITS TO NATIONS THAT WELCOME IT AND SPEEDS INTERNATIONAL ECONOMIC INTEGRATION AS WELL BUT THE STUDY SHOULD HELP SOME AMERICANS WHO CONTEND JAPAN MUST BE COERCED INTO TOLERATING MUCH MORE FOREIGN INVESTMENT BEFORE THE REST OF THE WORLD CAN SOLVE ITS TRADE PROBLEMS THERE THEY SAY TRADE FOLLOWS INVESTMENT AS NIGHT FOLLOWS DAY AND THAT JAPAN'S 143 BILLION GLOBAL TRADE SURPLUS WON'T SHRINK SUBSTANTIALLY UNTIL IT BECOMES A MORE CONGENIAL PLACE FOR FOREIGNERS TO OWN COMPANIES AND DESPITE BRAVE TALK FROM TOKYO ABOUT RADICAL REFORMS THAT TIME DOESN'T SEEM IMMINENT PARTLY CRITICS SAY BECAUSE THE CLINTON ADMINISTRATION HAS SOME WRONG IDEAS ABOUT WHERE SOLUTIONS LIE IN THE CASE OF JAPAN IT IS DOUBTFUL THAT THE CHANGES WILL OCCUR IN TIME TO REDUCE TRADE TENSION SAYS DAVID HALE CHIEF ECONOMIST FOR KEMPER FINANCIAL SERVICES INC BOLSTERING THAT VIEW WASN'T THE OECD'S PURPOSE IT SHUNS CONTROVERSY AND WON'T EVEN RELEASE ITS WORK BEFORE MEMBERS HAVE A CHANCE TO PURGE ANY ARGUMENTATIVE NOTIONS THIS REPORT MOST LIKELY TO APPEAR IN JUNE MERELY SET ITSELF THE TASK OF MEASURING THE OVERALL EFFECT OF FOREIGN DIRECT INVESTMENTS BY SELECTED MEMBER STATES OECD MEMBERS MADE RECORD HIGH INVESTMENTS DURING THE 1980S MOSTLY INSIDE EACH OTHER'S BORDERS AND IT WANTED TO DOCUMENT THE IMPACT THE EFFECTS WERE ALMOST ALWAYS POSITIVE WHICH THE JAPANESE SHOULD NOTE IN 10 OF THE 15 COUNTRIES STUDIED FOREIGNOWNED COMPANIES CREATED NEW EMPLOYMENT MORE RAPIDLY THAN DID HOST COUNTRY FIRMS SOMETIMES EXPANDING WHEN DOMESTIC ONES WERE CONTRACTING IN THREE OTHERS THEY ELIMINATED JOBS BUT MORE SLOWLY THAN DID DOMESTIC BUSINESS ONLY SOARING GERMAN AND JAPANESE COSTS CAUSED OVERSEAS OWNERS TO SLASH JOBS QUICKLY EMPLOYMENT AT US SUBSIDIARIES IN JAPAN FELL 30 DURING THAT DECADE BY CONTRAST FOREIGNOWNED COMPANIES CREATED 26 MILLION JOBS IN THE US DURING THOSE YEARS ONE MILLION OF THEM IN MANUFACTURING AND IN ALL 15 COUNTRIES OECD RESEARCHERS FOUND THAT FOREIGN OWNERS PAY HIGHER WAGES THAN DO DOMESTIC FIRMS BEYOND THAT FOREIGNOWNED COMPANIES USUALLY ARE MORE EFFICIENT IN BOTH ABSOLUTE LEVELS AND IN THE RATES OF PRODUCTIVITY INCREASES DURING THE 1980S GAINS RESULTED FROM HAVING MORE ADVANCED TECHNOLOGY THAN DOMESTIC COMPANIES OR FROM ADDING CAPACITY BY CONTRAST PRODUCTIVITY INCREASES AT LOCALLY OWNED COMPANIES MORE OFTEN RESULTED FROM FIRING PEOPLE HOWEVER THE FOREIGNTRADE EFFECT RELATES MOST CLEARLY TO THE REST OF THE WORLD'S SQUABBLES WITH JAPAN FOREIGN SUBSIDIARIES TEND TO EXPORT AND IMPORT MORE THAN DOMESTIC FIRMS WITH MOST OF THEIR IMPORTS COMING FROM THE PARENT COMPANY VIA INTRAFIRM TRADE SAYS AN OECD SUMMARY OF ITS STUDY OTHER RESEARCHERS HAVE FOUND THE SAME BRANCHES OF MULTINATIONAL COMPANIES TEND TO BUY FROM AND SELL TO EACH OTHER SWELLING INTERNATIONAL TRADE FIGURES ECONOMIST MARK MASON OF YALE SAYS THIS APPLIES ESPECIALLY TO USOWNED COMPANIES IN JAPAN THEY HAVE THE HIGHEST IMPORT PROPENSITY OF ANY AMERICAN SUBSIDIARIES IN THE WORLD HE SAYS BUT THERE AREN'T ENOUGH OF THEM OR OF INVESTMENTS FROM ANYWHERE ELSE TO HAVE GREAT IMPACT LESS THAN 1 OF BUSINESS ASSETS IN JAPAN ARE FOREIGNOWNED COMPARED WITH 20 IN THE US FOREIGNERS ACCOUNT FOR ONLY 12 OF SALES INSIDE JAPAN COUNTING BOTH IMPORTS AND GOODS MADE BY THEIR SUBSIDIARIES WHILE THEY HAVE 165 OF THE US MARKET THE CLINTON ADMINISTRATION SAYS JAPAN MUST IMPORT MORE AS MEASURED BY OBJECTIVE CRITERIA IT DENIES TOKYO'S CLAIM THAT THIS IS MANAGED TRADE BUT SOME AMERICANS CONTEND IT WOULD BECOME MANAGED TRADE BY DEFAULT AND SO THE POLICY IS WRONG THEY SAY THE CENTRAL PROBLEM IS THAT TOKYO CONTROLS PROPERTY AND FINANCIAL MARKETS IN WAYS THAT KEEP OUT FOREIGN INVESTORS DEREGULATION WOULD MAKE LAND AND CAPITAL AVAILABLE AND CUT BUSINESS COSTS OUTSIDERS' MAIN COMPLAINT MAKING MORE INVESTMENT FEASIBLE MORE TRADE WOULD FOLLOW REDUCING DEFICITS WHICH BRING OTHERS SUCH GRIEF THOSE RESTRICTIVE RULES ARE THE HEART OF A PROTECTIONIST SYSTEM AND THEY MUST GO THE CRITICS INSIST TINKERING AT THE MARGINS WITH TALK OF MARKET SHARE WON'T DO THE JOB AS MR MASON SAYS OWNERSHIP IS WHAT REALLY MATTERS 9404080175 940408 WHO'S NEWS ISHIHARA IS NAMED TO HEAD GOLDMAN AFFILIATE IN JAPAN BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO GOLDMAN SACHS & CO NAMED JAPANESE BANKER HIDEO ISHIHARA AS CHAIRMAN OF GOLDMAN SACHS JAPAN LTD AN AFFILIATED COMPANY IN A MOVE THAT UNDERSCORES THE US INVESTMENT BANK'S AMBITIONS FOR CLOSER TIES WITH JAPAN MR ISHIHARA 64 YEARS OLD COMES TO GOLDMAN SACHS AFTER A 40YEAR CAREER AT INDUSTRIAL BANK OF JAPAN LTD JAPAN'S PREMIER LENDER TO LARGE JAPANESE CORPORATIONS HE LEFT IBJ AS DEPUTY PRESIDENT IN 1992 AND HAS SINCE BEEN PRESIDENT OF IBJ'S LEASING AFFILIATE MR ISHIHARA ALSO WILL BECOME A GENERAL PARTNER OF GOLDMAN SACHS & CO THE FIRM RARELY HAS HIRED AN OUTSIDER TO JOIN ITS PARTNERSHIP RANKS TYPICALLY GOLDMAN SACHS EMPLOYEES TOIL FOR YEARS BEFORE EVEN BEING CONSIDERED FOR A PARTNERSHIP ONE OF THE MOST HIGHLY PRIZED POSITIONS ON WALL STREET MR ISHIHARA'S APPOINTMENT AS CHAIRMAN A POSITION WHICH IS CURRENTLY VACANT IS EFFECTIVE APRIL 30 HE WILL SHARE EXECUTIVE AUTHORITY WITH HENRY JAMES WHO IS PRESIDENT OF GOLDMAN SACHS'S 600PERSON JAPANESE OPERATION THE CHOICE OF AN IBJ BANKER MIGHT SURPRISE SOME OBSERVERS SINCE IBJ RIVAL SUMITOMO BANK LTD OWNS A 12 NONVOTING STAKE IN GOLDMAN SACHS'S JAPANESE OPERATION BUT MR ISHIHARA SAID THE APPOINTMENT HAD SUMITOMO'S FULL APPROVAL A SUMITOMO SPOKESMAN DECLINED TO COMMENT EXCEPT TO NOTE THAT SUMITOMO CAN'T VETO ANY GOLDMAN SACHS DECISIONS THE ANNOUNCEMENT COMES AT A TIME WHEN JAPANESE COMPANIES ARE MOVING AWAY FROM TRADITIONAL BANK LENDING AND INTO THE TYPES OF MARKETBASED FINANCING AT WHICH US BANKS EXCEL MANY COMPANIES ARE STILL FAR BEHIND THEIR FOREIGN COUNTERPARTS IN STOCK AND BOND ISSUANCE OR USE OF FINANCIAL DERIVATIVES BUT ARE OFTEN WARY OF DEALING WITH NONJAPANESE BANKS AS CHAIRMAN MR ISHIHARA SAID MY EMPHASIS WILL BE ON DEVELOPING RELATIONS WITH MAJOR JAPANESE COMPANIES PARTICULARLY IN EQUITY FINANCE FIXEDINCOME SECURITIES AND DERIVATIVES UNLIKE OTHER US INVESTMENT BANKS IN JAPAN GOLDMAN SACHS HADN'T PREVIOUSLY NAMED A FORMER JAPANESE BANKER AS CHAIRMAN MR ISHIHARA HAS BEEN INVOLVED IN JAPANESE ASSET SECURITIZATION A WAY OF TAKING ASSETS OFF A COMPANY'S BALANCE SHEET BY TURNING THEM INTO MARKETTRADED PRODUCTS GOLDMAN SACHS WOULD LIKE TO SECURITIZE SOME OF THE ESTIMATED 300 BILLION IN NONPERFORMING LOANS IN JAPAN'S BANKING SYSTEM 9404080174 940408 AK STEEL CORP RECAPITALIZATION MIDDLETOWN OHIO AK STEEL CORP SAID IT COMPLETED ITS RECAPITALIZATION WHICH INCLUDED AN INITIAL PUBLIC OFFERING OF 195 MILLION SHARES AT 2350 EACH AND 325 MILLION OF 1075 SENIOR NOTES AK A STEELMAKER FORMERLY WAS ARMCO STEEL CO LP A JOINT VENTURE BETWEEN ARMCO INC AND KAWASAKI STEEL CORP 9404080173 940408 TUESDAY MORNING CORP SALES DALLAS TUESDAY MORNING CORP SAID SALES IN ITS STORES OPEN AT LEAST A YEAR FELL 95 IN THE FIRST QUARTER FROM A YEAR EARLIER THE DISCOUNT GIFT RETAILER SAID TOTAL SALES IN THE PERIOD WERE 256 MILLION UP 2 FROM 25 MILLION A YEAR EARLIER THE COMPANY SAID THE DECREASE IN SAMESTORE SALES WAS GREATER THAN IT EXPECTED 9404080172 940408 TODAY'S MAN 5WEEK SALES ROSE MOORESTOWN NJ TODAY'S MAN INC WHICH OPERATES 25 MENSWEAR SUPERSTORES SAID SALES ROSE 43 FOR THE FIVE WEEKS ENDED APRIL 2 TO 154 MILLION FROM 108 MILLION SAMESTORE SALES ROSE 7 FOR MARCH AND APRIL SALES ROSE 31 TO 239 MILLION FROM 183 MILLION WHILE SAMESTORE SALES ROSE 13 9404080171 940408 WHO'S NEWS LINCARE HOLDINGS INC LINCARE HOLDINGS INC CLEARWATER FLA JAMES T KELLY PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS RESPIRATORYTHERAPY CONCERN WAS ELECTED TO THE ADDITIONAL POSITION OF CHAIRMAN MR KELLY 47 YEARS OLD SUCCEEDS ANDREW M PAUL A GENERAL PARTNER IN THE LEVERAGEDBUYOUT FIRM OF WELSH CARSON ANDERSON & STOWE NEW YORK MR PAUL 38 REMAINS A LINCARE DIRECTOR 9404080170 940408 SUNRISE ENERGY RECEIVES LOAN DALLAS SUNRISE ENERGY SERVICES INC SAID IT OBTAINED AN 8 MILLION CORPORATE LOAN FROM FIDELITY FUNDING INC OF DALLAS SUNRISE ENERGY A NATURALGAS COMPANY SAID IT PLANS TO USE THE FUNDS FOR WORKING CAPITAL AND TO ANCHOR A BANK LETTER OF CREDIT FACILITY TO AUGMENT THE COMPANY'S BUYING CAPACITY 9404080169 940408 DRESS BARN SALES RISE STAMFORD CONN DRESS BARN INC SAID SALES FOR THE FIVE WEEKS ENDED APRIL 2 ROSE 38 TO 457 MILLION FROM 33 MILLION A YEAR EARLIER WHILE SALES AT STORES OPEN MORE THAN A YEAR INCREASED 23 THE COMPANY OPERATES 676 WOMEN'S OFFPRICE APPAREL STORES 10 MORE THAN A YEAR AGO DRESS BARN OPERATES IN 42 STATES 9404080168 940408 MINING CONCERN CREDIT PACT NEW YORK ASARCO INC SAID IT ENTERED INTO A NEW FIVEYEAR 350 MILLION REVOLVING CREDIT AGREEMENT REPLACING ONE SET TO EXPIRE IN MAY 1996 AGENTS FOR THE CREDIT FACILITY ARE UNITS OF CHASE MANHATTAN CORP CITICORP AND JP MORGAN & CO ASARCO IS A MINING COMPANY THAT PRODUCES COPPER LEAD ZINC GOLD AND SPECIALTY CHEMICALS AND MINERALS 9404080167 940408 GANTOS SALES FELL 1 IN MARCH GRAND RAPIDS MICH GANTOS INC SAID ITS MARCH SALES DROPPED 1 FROM A YEAR AGO TO 191 MILLION FOR THE FIVEWEEK PERIOD ENDED APRIL 2 THE WOMEN'S APPAREL RETAILER SAID IT HAD SALES OF 317 MILLION FOR THE NINE WEEKS ENDED APRIL 2 A 1 DECREASE FROM A YEAR EARLIER GANTOS SAID IT HAS ADJUSTED ITS NET SALES FIGURES FOR 1993 TO EXCLUDE SALES FROM THE 41 STORES THAT WERE CLOSED IN THE FOURTH QUARTER OF LAST YEAR 9404080166 940408 ECONOMY COMPANIES TO LIFT 94 SPENDING BY 8 DATA SHOW MODERATE PACE FOR ECONOMY BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY IS CHUGGING STEADILY ALONG BUT NOT ROARING THREE ECONOMIC REPORTS INDICATE US BUSINESSES PLAN TO SPEND 8 MORE ON NEW PLANTS AND EQUIPMENT IN 1994 THAN IN 1993 THE COMMERCE DEPARTMENT SAID THE PLANNED SPENDING BEFORE BEING ADJUSTED FOR INFLATION TOTALS 63276 BILLION MOST OF THE CAPITAL INVESTMENT IS IN HEAVY MANUFACTURING PLANNED SPENDING OFTEN EXCEEDS ACTUAL OUTLAYS FOR PLANTS AND EQUIPMENT ALTHOUGH IN 1993 AS THE ECONOMY RECOVERED MODERATELY ACTUAL SPENDING OF 58564 BILLION WAS SLIGHTLY HIGHER THAN EXPECTATIONS THROUGHOUT THE YEAR THE 1993 CAPITAL SPENDING WAS 71 ABOVE 1992 SPENDING MANUFACTURERS PROJECTED A 75 RISE IN 1994 OUTLAYS FOLLOWING A 30 INCREASE IN 1993 BLAST FURNACES AUTOS AND ELECTRICAL MACHINERY ARE EXPECTED TO SEE THE HIGHEST CAPITAL OUTLAYS CAPITAL SPENDING BY THE AIRCRAFT INDUSTRY IS SEEN DECLINING 173 COMPARED WITH A DECLINE OF 257 IN 1993 THE REPORTS SUPPORTED THE CLINTON ADMINISTRATION WHICH HAS TAKEN PAINS TO PORTRAY THE ECONOMY AS GROWING BUT AT A MORE MODERATE PACE THAN IN THE FOURTH QUARTER IN THAT PERIOD THE GROSS DOMESTIC PRODUCT INCREASED AT AN ANNUAL RATE OF 7 PROMPTING INFLATION FEARS THAT HAVE HELPED ROIL THE FINANCIAL MARKETS WE SEE UNEMPLOYMENT DOWN AND INFLATION UNDER CONTROL SAID TREASURY SECRETARY LLOYD BENTSEN IN A FORT WORTH TEXAS SPEECH THAT OTHERWISE AVOIDED COMMENTS ON THE ECONOMY OR THE FINANCIAL MARKETS STOCK AND BOND MARKETS CONTINUED THEIR REBOUND YESTERDAY WITH THE DOW JONES INDUSTRIAL AVERAGE GAINING 1353 POINTS AND THE 30YEAR TREASURY BOND RISING 3/8 POINT THE LABOR DEPARTMENT REPORTED THAT INITIAL UNEMPLOYMENT CLAIMS ROSE BY 7000 TO 337000 LAST WEEK ALTHOUGH THE FOURWEEK MOVING AVERAGE OF NEW CLAIMS FELL TO 338250 FROM 341500 A WEEK EARLIER FEWER LAYOFFS ARE BEING REPORTED ACROSS A BROAD SPECTRUM OF INDUSTRIES THE NUMBERS SUGGESTED THAT THE STRONG MARCH EMPLOYMENT REPORT WHICH RATTLED THE MARKETS LAST WEEK WAS A SNAP BACK FROM THE SEVERE WINTER WEATHER THAT CURTAILED CONSTRUCTION AND OTHER HIRING ALTHOUGH EMPLOYMENT IS IMPROVING WE SHOULDN'T EXPECT TO SEE THE STRENGTHS WE SAW IN THE MONTH OF MARCH SAID MARILYN SCHAJA ECONOMIST FOR DONALDSON LUFKIN & JENRETTE SECURITIES CORP THAT GAVE THE MARKET SOME SUPPORT ALSO THE FEDERAL RESERVE REPORTED YESTERDAY THAT CONSUMER CREDIT IN THE US EXPANDED BY 354 BILLION IN FEBRUARY OR AT A 53 ADJUSTED ANNUAL RATE IN JANUARY IT GREW AT A 97 RATE OR BY 637 BILLION ALTHOUGH IT WAS THE NINTH STRAIGHT MONTHLY EXPANSION IN CREDIT IT WAS THE SMALLEST INCREASE SINCE JUNE 1993 WHEN CREDIT GREW AT A 34 ANNUAL RATE A FED OFFICIAL SAID CONSUMER CREDIT OUTSTANDING REACHED A RECORD 800 BILLION IN FEBRUARY A FED OFFICIAL SAID FIGURES IN ALL THE REPORTS ARE ADJUSTED FOR SEASONAL VARIATIONS HERE IS THE BREAKDOWN BY MAJOR INDUSTRIES OF CAPITAL SPENDING PLANS FOR 1994 WITH ACTUAL SPENDING FOR 1993 AND 1992 IN BILLIONS OF DOLLARS HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR FEBRUARY IN BILLIONS AND PERCENTAGE CHANGES FROM JANUARY AT AN ANNUAL RATE 9404080165 940408 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED MARCH 31 ACCOUNTED FOR 109 OR AN AVERAGE 357 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 132 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 475 INVOLVED STOCKINDEX ARBITRAGE UP FROM 386 IN THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 611 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AND 374 FOR THEIR CUSTOMERS AN ADDITIONAL 15 WAS CUSTOMER FACILITATION IN WHICH FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES SUSQUEHANNA UBS SECURITIES AND COOPER NEFF EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY DID MOST OF ITS TRADING FOR ITS CUSTOMERS DURING THE THREE INSTANCES LAST WEEK IN WHICH THE DOW JONES INDUSTRIALS FELL AT LEAST 50 POINTS IN A ONEHOUR PERIOD THE FIRMS DOING THE MOST PROGRAM TRADING WERE NOMURA SECURITIES SUSQUEHANNA AND UBS SECURITIES ALL PRIMARILY ON THE SELL SIDE 9404080164 940408 ERICSSON GETS CYPRUS CONTRACT STOCKHOLM SWEDISH TELECOMMUNICATIONS GROUP TELEFON AB LM ERICSSON SAID IT SIGNED A CONTRACT WITH THE CYPRUS TELECOMMUNICATIONS AUTHORITY FOR A GSM GLOBAL SYSTEM FOR MOBILE COMMUNICATIONS NETWORK TO PROVIDE COMPLETE COVERAGE OF GOVERNMENTCONTROLLED AREAS OF THE REPUBLIC OF CYPRUS THE VALUE OF THE CONTRACT WASN'T DISCLOSED THE NETWORK IS EXPECTED TO BE OPERATIONAL BY THE END OF 1994 ERICSSON SAID 9404080163 940408 REVIEW & OUTLOOK EDITORIAL RETREAT FROM DEAUVILLE THE FRENCH ARE RETREATING UNDER WITHERING FIRE FROM THE CANADIANS ON THE MATTER OF THE HOTEL ROOMS IN DEAUVILLE A FEW MORE DUSTUPS OVER THE DDAY ANNIVERSARY OBSERVANCES IN NORMANDY AND WE MAY BE FIGHTING WORLD WAR II ALL OVER AGAIN WITH A DIFFERENT SET OF ALLIANCES THE HOTEL DEBACLE STEMMED FROM A DEMAND BY FRENCH PRESIDENT FRANCOIS MITTERRAND FOR MORE ROOMS TO ACCOMMODATE AN UNEXPECTED NUMBER OF HEADS OF STATE COMING TO THE JUNE 6 DOINGS TO BOOK THEM INTO THE HOTEL ROYAL SOME ANONYMOUS FONCTIONNAIRE SHIFTED TV CREWS AND JOURNALISTS TO THE HOTEL DU GOLF THAT MEANT BUMPING SOME GUESTS FROM THE GOLF THOSE BUMPED HAPPENED TO INCLUDE A COUPLE OF HUNDRED VETERANS OF THE FIRST CANADIAN PARATROOP BATTALION AND OTHER CANADIAN AND BRITISH UNITS WHO HELPED LIBERATE FRANCE THE FIRST TOOK HEAVY CASUALTIES ON DDAY WE'RE BLOODY ANGRY DECLARED RONALD ANDERSON PRESIDENT OF THE CANADIAN FIRST'S VETERAN'S ASSOCIATION WHICH HAD PAID 70000 IN DEPOSITS FOR THE TRIP THE CANADIAN AMBASSADOR TO FRANCE STEPPED IN IN THE BRITISH HOUSE OF COMMONS LABOR MPS WERE DEMANDING ACTION THE POOR FRENCH FOREIGN MINISTRY SPOKESMAN RICHARD DUQUE WAS ASSIGNED TO PUT OUT THE FIRE AND MANAGED TO SCORCH HIMSELF IN THE PROCESS THERE WAS NEVER ANY PLANNED COMMANDEERING NOR WERE THERE ANY FORCED MEASURES AND THERE WAS NEVER A CONTROVERSY NEVER A PROBLEM OF COURSE NOT AT LEAST NOT UNTIL THE AGING VETERANS DEMONSTRATED THAT THEY STILL HAD SOME FIGHT LEFT AND HANDED M MITTERRAND AND FRANCE AN ENORMOUS EMBARRASSMENT PERHAPS THE HOTEL DUSTUP IN DEAUVILLE WILL BE A CHASTENING EXPERIENCE IT SHOULD SERVE AS A WARNING TO THOSE NATIONAL FIGURES WHO ARE UNDOUBTEDLY TEMPTED TO USE THE DDAY OBSERVANCES AS AN OCCASION FOR POLITICAL GRANDSTANDING 9404080162 940408 WHO'S NEWS BURLINGTON RESOURCES INC BURLINGTON RESOURCES INC HOUSTON JOHN E HAGALE EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS OIL AND NATURAL GAS COMPANY'S MERIDIAN OIL INC UNIT WAS NAMED TO THE ADDITIONAL POSTS OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THE PARENT COMPANY MR HAGALE 37 YEARS OLD SUCCEEDS GEORGE E HOWISON 49 WHO REMAINS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MERIDIAN OIL INC 9404080161 940408 COSMETIC CENTER SALES JUMP 13 SAVAGE MD COSMETIC CENTER INC SAID SALES FOR THE FISCAL MONTH ENDED MARCH 25 ROSE 13 TO 78 MILLION FROM 69 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR ROSE 3 THE SPECIALTY RETAILER OF COSMETICS SAID IT SIGNED A LEASE IN ATLANTA IT ALSO PLANS TO ENTER THE PHILADELPHIA MARKET THIS SPRING WITH THREE NEW STORES AND PLANS OPENINGS IN NORTH CAROLINA MARYLAND AND VIRGINIA 9404080160 940408 WHO'S NEWS AMERICAN MEDICAL HOLDINGS INC AMERICAN MEDICAL HOLDINGS INC DALLAS THOMAS J SABATINO JR WAS NAMED SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF THIS OPERATOR OF ACUTECARE HOSPITAL'S AMERICAN MEDICAL INTERNATIONAL INC OPERATING UNIT MR SABATINO 35 YEARS OLD WAS PREVIOUSLY ASSOCIATE GENERAL COUNSEL OF THE UNIT HE SUCCEEDS MARSCHALL I SMITH 49 WHO RESIGNED SEVEN MONTHS AGO TO ACCEPT A POSITION AT IMC FERTILIZER GROUP INC IN NORTHBROOK ILL 9404080159 940408 CYGNE'S CHIEF CITES QUICK TURNAROUND AS REASON FOR APPAREL MAKER'S SUCCESS BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CYGNE DESIGNS INC'S CHAIRMAN AND CHIEF EXECUTIVE BERNARD M MANUEL LIKES TO SAY THAT AT ANY TIME THE PRIVATE LABEL APPAREL COMPANY'S INVENTORY OF FINISHED GOODS IS ON A PLANE THE INSISTENCE ON MANUFACTURING ONLY WHAT HAS BEEN SOLD WITH A QUICK TURNAROUND IS WHAT HE SAID HAS HELPED CYGNE AVOID SOME OF THE RISKS OF CHANGING FASHION TRENDS OUR VERY QUICK TURN TIME AFFORDS OUR CUSTOMERS AN OPPORTUNITY TO MAKE UP THEIR MIND AT THE LAST MINUTE ABOUT THE LATEST FASHION TRENDS THE EXECUTIVE SAID IN AN INTERVIEW CYGNE TURNS ITS INVENTORIES ABOUT 15 TIMES A YEAR COMPARED WITH OTHER APPAREL COMPANIES SUCH AS LIZ CLAIBORNE INC AND JONES APPAREL GROUP INC'S JONES NEW YORK WHICH MR MANUEL SAID TURN THEIR INVENTORIES ABOUT FOUR TO FIVE TIMES A YEAR MR MANUEL IS EXPECTING CYGNE TO REPORT NEXT WEEK THAT SALES FOR THE FISCAL FOURTH QUARTER ENDED JAN 29 ROSE ABOUT 32 TO ROUGHLY 62 MILLION FROM 47 MILLION WHILE NET INCOME GREW ABOUT 37 TO ABOUT 25 MILLION OR 30 CENTS A SHARE FROM 18 MILLION OR 34 CENTS A SHARE THE PREVIOUS YEAR THERE WERE 83 MILLION SHARES OUTSTANDING IN THE LATEST QUARTER UP ABOUT 56 FROM 53 MILLION A YEAR AGO BECAUSE OF CYGNE'S INITIAL PUBLIC OFFERING LAST AUGUST FOR THE FISCAL YEAR THE EXECUTIVE ESTIMATES CYGNE WILL REPORT A SALES INCREASE OF ABOUT 77 TO AN ESTIMATED 220 MILLION FROM 125 MILLION MR MANUEL ESTIMATES NET ROSE ABOUT 96 TO ROUGHLY 61 MILLION OR 92 CENTS A SHARE FROM 31 MILLION OR 59 CENTS A SHARE CYGNE HAD STRONG SALES INCREASES TO ITS TOP THREE CUSTOMERS ANNTAYLOR STORES CORP AND LIMITED INC'S LIMITED STORES AND EXPRESS DIVISIONS WHICH ACCOUNTED FOR MORE THAN 90 OF 1993 SALES TO DECREASE ITS HEAVY DEPENDENCE ON THE THREE CUSTOMERS CYGNE HAS SOUGHT NEW CUSTOMERS INCLUDING THE CASUAL CORNER AND PETITES SOPHISTICATES DIVISIONS OF US SHOE CORP AND AMERICAN EAGLE OUTFITTERS WHICH ARE EXPECTED TO ACCOUNT FOR MORE THAN 20 OF 1994 SALES VOLUME CYGNE WAS ALSO SUCCESSFUL IN BRANCHING OUT IN 1992 IN A JOINT VENTURE WITH ANNTAYLOR AS WELL AS ON A NEW LINE OF KNITS AND SWEATERS THIS WEEK CYGNE ANNOUNCED THE COMPLETION OF ITS PURCHASE OF FENN WRIGHT & MANSON INC A CLOSELY HELD PRIVATELABEL MAKER OF WOMEN'S AND MEN'S SPORTSWEAR FOR TWO MILLION SHARES OF NEWLY ISSUED STOCK AT 22 A SHARE OR ABOUT 44 MILLION AS A RESULT OF THE PURCHASE FENN WRIGHT HOLDERS WHICH INCLUDE ITS PRINCIPALS COLIN C FENN TREVOR WRIGHT AND A HONG KONG GROUP CALLED KADOORIE MCCAULEY GROUP NOW OWN NEARLY 20 OF CYGNE WHILE CYGNE PRINCIPALS AND FORMER INVESTORS HOLD A CONTROLLING INTEREST IN IT MR FENN HAS BECOME CYGNE'S VICE CHAIRMAN MR MANUEL SAID THAT ALTHOUGH CYGNE IS ISSUING TWO MILLION SHARES IN THE FENN WRIGHT ACQUISITION THE PURCHASE IS EXPECTED TO BE ANTIDILUTIVE TO PERSHARE EARNINGS HE SAID THE PURCHASE WHICH WILL ADD SOCALLED SOFTDRESSING PRODUCTS SUCH AS SILK DRESSES BLOUSES AND SKIRTS WILL GIVE CYGNE A COMPLETE LINE OF WOMEN'S APPAREL CYGNE HAS BEEN STRONG IN CONSTRUCTED SPORTSWEAR SUCH AS JACKETS AND SUITS THE PURCHASE ALSO WILL ADD OTHER CUSTOMERS INCLUDING DEPARTMENT STORES SUCH AS RH MACY & CO AND THOSE OWNED BY FEDERATED DEPARTMENT STORES INC THE EXECUTIVE ESTIMATED THAT IF THE FENN WRIGHT ACQUISITION HAD BEEN MADE A YEAR AGO CYGNE PROFORMA SALES FOR THE LATEST YEAR WOULD HAVE BEEN ABOUT 370 MILLION WALL STREET ESTIMATES PUT CYGNE SALES FOR THE CURRENT YEAR INCLUDING THE ACQUISITION AT ABOUT 500 MILLION MR MANUEL SAID CYGNE'S THRUST THIS YEAR WILL BE ON INTERNAL GROWTH BUT THAT THE COMPANY WOULD CONSIDER MAKING ACQUISITIONS OF OTHER DESIGNFOCUSED PRIVATELABEL MANUFACTURERS ABOUT 80 OF CYGNE'S MANUFACTURING IS DONE OVERSEAS IN 1989 BEFORE CURRENT MANAGEMENT TOOK OVER THE COMPANY HAD A LIQUIDITY CRISIS BECAUSE IT COULDN'T FILL CUSTOMERS' ORDERS IN TIME AFTER MR MANUEL CAME ON BOARD IN 1990 FROM AMVENT A BOUTIQUE INVESTMENT BANK WHICH HE FOUNDED CYGNE REDUCED THE NUMBER OF MANUFACTURING SUBCONTRACTORS AND INCREASED QUALITY CONTROL AT THE REMAINING FACTORIES MR MANUEL SAID A KEY TO THE COMPANY'S GROWTH HAS BEEN ITS ABILITY TO CONTROL A VERY DIFFICULT GLOBAL MANUFACTURING PROCESS COORDINATING FABRIC AND TRIM DELIVERIES FROM DIFFERENT COUNTRIES AND STILL MAKE QUICK CHANGES 9404080158 940408 CONTINENTAL AIR'S TRAFFIC RISES HOUSTON CONTINENTAL AIRLINES SAID ITS MARCH TRAFFIC ROSE 07 FROM A YEAR EARLIER THE CARRIER REPORTED THAT TRAFFIC ROSE TO 36 BILLION REVENUE PASSENGER MILES FROM 35 BILLION REVENUE PASSENGER MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 659 FROM 625 FOR THE YEAR TO DATE TRAFFIC FELL 47 TO 93 BILLION REVENUE PASSENGER MILES FROM 98 BILLION REVENUE PASSENGER MILES A YEAR EARLIER LOAD FACTOR ROSE TO 609 FROM 585 9404080157 940408 INTERNATIONAL UK'S WIMPEY TO SELL UNIT LONDON UK CONSTRUCTION GROUP GEORGE WIMPEY PLC SAID IT AGREED TO SELL ITS WIMPOL SATELLITE SURVEY AND POSITIONING UNIT TO FUGRO MCCLELLAND NV A DUTCH CONSULTING ENGINEERING COMPANY THE SALE WILL GENERATE PROCEEDS TO WIMPEY OF 54 MILLION 79 MILLION PLUS THE REPAYMENT OF INTERCOMPANY DEBT WIMPEY'S CHIEF EXECUTIVE OFFICER JOE DWYER SAID OUR EXIT FROM THIS SPECIALIST AREA WHICH IS PERIPHERAL TO THE GROUP'S MAINSTREAM ACTIVITIES IS IN LINE WITH OUR DIVESTMENT STRATEGY FOR NONCORE BUSINESSES 9404080156 940408 POLITICS & POLICY BOND LAWYERS IN BOOST FOR IRS ADOPT AMPLIFIED' STANDARD FOR TAX OPINIONS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON BOND LAWYERS SUPPORTING BEEFEDUP INTERNAL REVENUE SERVICE ENFORCEMENT EFFORTS IN THE MUNICIPAL BOND MARKET HAVE ADOPTED AN AMPLIFIED STANDARD FOR THEIR TAX OPINIONS FOR BONDS TO BE SOLD AS TAXEXEMPTS LAWYERS MUST ISSUE UNQUALIFIED OPINIONS THAT THE SECURITIES QUALIFY FOR TAXEXEMPT STATUS THESE OPINIONS ASSURE INVESTORS THAT THE BONDS WILL BE EXEMPT FROM FEDERAL TAXATION THE AMPLIFIED STANDARD HAS BEEN FORMALLY EMBRACED BY THE NATIONAL ASSOCIATION OF BOND LAWYERS AND DISTRIBUTED TO ALL ITS MEMBERS IT CALLS ON LAWYERS WHO SAY THE IRS WILL ACCEPT THEIR OPINIONS TO ASSUME THE AGENCY WILL REVIEW ALL MATTERS PERTAINING TO THE OPINIONS AND TO ASSUME THE IRS WILL CHALLENGE THE OPINIONS IF THEY DON'T JIBE WITH THE AGENCY'S VIEWS UNDER THE AMPLIFIED STANDARD THE NABL SAID BOND COUNSEL MAY NOT BASE THEIR OPINION ON THE LIKELIHOOD THAT THE MATTER WOULD NOT BE AUDITED OR THAT THE AMOUNT IN CONTROVERSY WOULD BE TOO SMALL FOR THE IRS TO LITIGATE OR THAT THE IRS AND THE ISSUER WOULD ENTER INTO A CLOSING AGREEMENT TO RESOLVE DISPUTES WHILE SUCH LANGUAGE SEEMS TO ENCOURAGE A HIGHER STANDARD IN TAX OPINIONS NABL OFFICIALS INSISTED ON CALLING THE CHANGE AN AMPLIFICATION OR A CLARIFICATION NABL PRESIDENT NEIL ARKUSS OF PALMER & DODGE SAID THE CLARIFICATION MESHES WITH THE IRS'S MORE ACTIVE PRESENCE IN THE MUNI MARKET AND THE LACK OF PERTINENT JUDICIAL PRECEDENT BOND LAWYER SHARON WHITE OF JONES HALL HILL & WHITE SAID THE AMPLIFIED STANDARD SEEKS TO FILL THE VOID CREATED BY THE DEARTH OF APPLICABLE LEGAL PRECEDENTS BY ENCOURAGING BOND LAWYERS TO KEY THEIR OPINIONS TO REALWORLD IRS GUIDANCE THE IRS HAS STEPPED UP ITS ENFORCEMENT EFFORTS IN THE MARKET AND PLANS TO CONDUCT EXTENSIVE MUNI AUDITS THE US TAX COURT AGREED FOR THE FIRST TIME TO HEAR A CASE IN WHICH INVESTORS CHALLENGED AN IRS HOLDING THAT INTEREST ON BONDS THEY PURCHASED AS TAXEXEMPT SECURITIES IS TAXABLE A DECISION IN THE CASE ISN'T EXPECTED UNTIL THE SUMMER OF 1995 UNDER THE TAXOPINION STANDARD PREVIOUSLY ENDORSED BY THE GROUP LAWYERS GAVE UNQUALIFIED OPINIONS ONLY IF THEY DETERMINED THAT IT WOULD BE UNREASONABLE FOR A COURT TO HOLD TO THE CONTRARY UNDER THE AMPLIFIED STANDARD THEY MAY REACH THIS CONCLUSION BY DETERMINING THAT THERE IS NO REASONABLE POSSIBILITY THAT THE INTERNAL REVENUE SERVICE WOULD NOT CONCUR OR ACQUIESCE IN THE OPINION 9404080155 940408 VOLVO UNIT TO CHANGE NAME STOCKHOLM SWEDEN'S VOLVO FLYGMOTOR AB A UNIT OF AUTOMOTIVE AND INDUSTRIAL GROUP AB VOLVO SAID IT WILL CHANGE ITS NAME TO VOLVO AERO CORP INCREASED INTERNATIONAL OPERATIONS FOR VOLVO FLYGMOTOR WHICH PRODUCES AVIATION ENGINES HAS MADE THE CHANGE NECESSARY THE GROUP SAID THE NAMECHANGE PROCESS IS EXPECTED TO BE COMPLETED BY JULY 1 WE HAVE MANY CUSTOMERS AND PARTNERS IN BOTH THE US AND EUROPE SAID ARNE WITTLOEV PRESIDENT OF VOLVO FLYGMOTOR IN THOSE COUNTRIES THE SWEDISH WORD FLYGMOTOR' ISN'T A MARKETABLE NAME 9404080154 940408 WHO'S NEWS VARITY CORP VARITY CORP BUFFALO NY HOWARD CHANDLER 54 YEARS OLD FORMERLY GROUP CORPORATE AFFAIRS DIRECTOR OF GRAND METROPOLITAN PLC WAS NAMED SENIOR VICE PRESIDENT OF HUMAN RESOURCES AT THIS INDUSTRIAL MANAGEMENT COMPANY WITH CORE BUSINESSES IN AUTOMOTIVE COMPONENTS FARM MACHINERY AND DIESEL ENGINES MR CHANDLER ALSO NAMED TO VARITY'S FIVEMEMBER MANAGEMENT COMMITTEE SUCCEEDS BRUCE HARVEY WHO WAS RECENTLY NAMED VICE PRESIDENT OF PLANNING AND ADMINISTRATION AT THE COMPANY'S KELSEYHAYES GROUP UNIT 9404080153 940408 INTERNATIONAL UK INDUSTRIAL OUTPUT RISES LONDON BRITISH INDUSTRIAL PRODUCTION ROSE A SEASONALLY ADJUSTED 08 IN FEBRUARY FROM JANUARY AND JUMPED 35 FROM A YEAR EARLIER ACCORDING TO PROVISIONAL FIGURES RELEASED BY THE CENTRAL STATISTICAL OFFICE THE FEBRUARY FIGURE WAS MUCH HIGHER THAN ECONOMISTS' EXPECTATIONS OF A 03 RISE ON THE MONTH AND A 31 INCREASE ON THE YEAR MANUFACTURING PRODUCTION ALONE ROSE 06 IN THE MONTH AND WAS UP 17 FROM A YEAR EARLIER IT WAS EXPECTED TO RISE 03 ON THE MONTH AND 16 ON THE YEAR 9404080152 940408 BROWNINGFERRIS GETS CONTRACT HOUSTON BROWNINGFERRIS INDUSTRIES INC SAID IT HAS BEEN AWARDED A 140 MILLION CONTRACT TO COLLECT RESIDENTIAL WASTE RECYCLABLES AND YARD WASTE FOR THE CITY OF FREMONT CALIF THE WASTE SERVICES CONCERN WHICH HAS HAD A LANDFILL IN ALAMEDA COUNTY FOR SEVERAL YEARS SAID SERVICE TO THE 44000HOME COMMUNITY MARKS ITS ENTRY FOR WASTE COLLECTION IN THE COUNTY THE LIFE OF THE CONTRACT EXTENDS FOR SEVEN YEARS WITH THREE ONEYEAR OPTIONS BASED ON PERFORMANCE 9404080151 940408 ATLANTIC SOUTHEAST TRAFFIC RISES ATLANTA ATLANTIC SOUTHEAST AIRLINES SAID ITS MARCH TRAFFIC ROSE ABOUT 38 FROM MARCH 1993 THE REGIONAL CARRIER REPORTED 65 MILLION REVENUE PASSENGER MILES FOR THE MONTH UP FROM 47 MILLION MILES IN MARCH 1993 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED FELL TO 473 FROM 479 A YEAR EARLIER FOR THE YEAR TO DATE TRAFFIC ROSE ABOUT 36 TO 1768 MILLION REVENUE PASSENGER MILES FROM 1304 MILLION IN 1993 9404080150 940408 OLIVETTI SAYS COST TRIMMING CUT 93 NET LOSS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN ING C OLIVETTI & CO SAID THAT ITS 1993 NET LOSS NARROWED TO 4646 BILLION LIRE 281 MILLION AND THAT IT EXPECTS TO BREAK EVEN AT THE OPERATING LEVEL THIS YEAR FOR THE FIRST TIME SINCE PLUNGING INTO THE RED IN 1991 THE COMPUTER COMPANY ALSO SAID IT PLANS A 250 BILLION LIRE CAPITAL INCREASE THROUGH THE ISSUANCE OF CONVERTIBLE BONDS THE NEW FUNDS ARE EXPECTED TO HELP PAY DOWN SHORTTERM DEBT AS WELL AS PARTIALLY FINANCE OLIVETTI'S INVESTMENT IN ITALY'S SECOND CELLULARTELEPHONE OPERATION OLIVETTI SAID GROUP OPERATING LOSSES NARROWED TO 2059 BILLION LIRE LAST YEAR FROM 229 BILLION LIRE IN 1992 THE COMPANY WHICH BEGAN A MASSIVE RESTRUCTURING IN 1989 SAID IMPROVED PERFORMANCE STEMMED FROM FURTHER CUTS IN OPERATING COSTS AND HIGHER REVENUE FROM THE NEWPRODUCT INTRODUCTIONS LAST YEAR THE IMPROVEMENT CAME DESPITE A FALL OF 3035 IN COMPUTER PRICES LAST YEAR THE EUROPEAN RECESSION AND A MEAGER 2 GROWTH IN THE EUROPEAN INFORMATION TECHNOLOGY MARKET SAID CORRADO PASSERA JOINT MANAGING DIRECTOR I WON'T SAY WE'RE COMPELETLY OUT OF THE DARK BUT WE'RE ON THE RIGHT TRACK MR PASSERA SAID AFTER TWO YEARS OF DECLINING REVENUE SALES ROSE 73 LAST YEAR TO 8612 TRILLION LIRE FROM 8025 TRILLION LIRE IN 1992 SALES IN THE FIRST QUARTER OF 1994 ARE OUTPACING THOSE OF THE YEARAGO PERIOD MR PASSERA SAID HE SAID INCREASES CAME FROM EUROPE EXCLUDING ITALY WHICH RECORDED AN 115 RISE AND THE REST OF THE WORLD WHERE SALES ROSE 265 SALES IN ITALY FELL 6 LAST YEAR THE COMPANY INCREASED ITS EUROPEAN MARKET SHARES IN PERSONAL COMPUTERS TO 65 FROM 62 IN 1992 IN COMPUTER NOTEBOOKS TO 6 FROM 4 AND INKJET PRINTERS TO 62 FROM 55 FINANCIAL ANALYSTS SAID THAT RESULTS WERE IN LINE WITH EXPECTATIONS AND THAT THE COMPANY IS WELLPLACED FOR AN UPTURN IN THE MARKET THIS YEAR SEEMS TO HAVE STARTED OUT VERY WELL FOR THEM AND THEY SHOULD DO WELL IF THE EUROPEAN ECONOMIES ARE PICKING UP SAID FIONA MARSHALL ANALYST WITH KLEINWORT BENSON SECURITIES IN LONDON OLIVETTI SAID THE NET EFFECT OF DEVALUATION OF THE LIRA WAS NEGATIVE FOR THE COMPANY BECAUSE OLIVETTI BUYS 80 OF ITS COMPONENTS IN YEN AND DOLLARS AND EMPLOYS 50 OF ITS STAFF OUTSIDE OF ITALY WITHOUT THE NEGATIVE EFFECT OF DEVALUATION ON PROFIT OF THE ITALIAN OPERATION THE COMPANY WOULD BE AT BREAKEVEN RIGHT NOW MR PASSERA SAID OLIVETTI IS REAPING BENEFITS FROM ITS RESTRUCTURING PLAN MR PASSERA SAID THE COMPANY CONTINUED TO TRIM ITS WORK FORCE IN 1993 FOR THE FOURTH CONSECUTIVE YEAR CUTTING 13 OF ITS EMPLOYEES OLIVETTI NOW EMPLOYS 35171 FROM 56937 WHEN THE PLAN BEGAN IN 1989 THUS SELLING AND ADMINISTRATIVE EXPENSES FELL 14 LAST YEAR NET DEBT DECLINED TO 7979 BILLION LIRE IN 1993 FROM 961 BILLION LIRE IN 1992 DUE IN PART TO A RIGHTS ISSUE LAUNCHED IN JUNE THE COMPANY SAID IT WILL ISSUE AS MANY AS 250 MILLION COMMON SHARES FOR THE CONVERSION OF A FORTHCOMING BOND ISSUE BY OLIVETTI INTERNATIONAL SA SHARES WHICH WILL BE OFFERED TO INSTITUTIONAL INVESTORS WILL HAVE A FACE VALUE OF 1000 LIRE THE COMPANY SAID IT WILL SET THE CONVERSION RATIO AFTER IT SETS THE CONVERSION PRICE THE PRICE WILL BE BASED ON EITHER PERSHARE EQUITY VALUE INCREASED BY 5 OR THE AVERAGE SHARE PRICE ON THE FIVE TRADING DAYS PRIOR TO THE BOND OFFER INCREASED BY 520 WHICHEVER IS HIGHER MR PASSERA FORECAST THAT COMPUTER PRICES WILL CONTINUE TO FALL THIS YEAR EUROPE'S COMPUTER DEMAND ISN'T EXPECTED TO RISE ABOVE LAST YEAR'S 2 OLIVETTI WHICH CREATED A NEW TELECOMMUNICATIONS DIVISION IN 1994 WILL NOT SEE BENEFITS FROM THE NEW CELLULAR TELEPHONE LICENSE IT WON LAST MONTH UNTIL 1996 MR PASSERA SAID THE OMNITEL CONSORTIUM IN WHICH OLIVETTI HOLDS A 35 STAKE IS EXPECTED TO REAP AS MUCH AS ONE BILLION LIRE IN REVENUE FROM THE LICENSE IN 1997 HE SAID OLIVETTI WILL INVEST 1000 BILLION LIRE OF THE 3000 BILLION LIRE NEEDED FOR THE VENTURE 9404080149 940408 REVIEW & OUTLOOK EDITORIAL WRIGHT WRONGED WHILE THE MUSEUM OF MODERN ART IN NEW YORK CITY IS CELEBRATING THE 125TH ANNIVERSARY OF FRANK LLOYD WRIGHT'S BIRTH WITH AN IMPRESSIVE EXHIBITION ANOTHER MUSEUM IS BUSILY CHISELING AWAY AT THE ONE IMPORTANT BUILDING HE CREATED IN NEW YORK THE SOLOMON R GUGGENHEIM MUSEUM FINISHED IN 1959 THE GRANDLY ECCENTRIC STRUCTURE WITH ITS SWIRLING ROTUNDA HAS BEEN ONE OF THE CITY'S WORLDRENOWN MONUMENTS BUT UNDER THE DIRECTORSHIP OF THOMAS KRENS THE MUSEUM BOARD HAS BECOME ASTONISHINGLY BLITHE ABOUT ITS STEWARDSHIP OF THIS REMARKABLE LANDMARK AND INCREASINGLY OBSESSED WITH ERECTING MINIGUGGENHEIMS THE WORLD OVER INCLUDING SALZBURG WHICH HAS SO FAR REJECTED ITS ADVANCES ONLY TWO YEARS AGO A 10STORY TOWER OF GREAT BANALITY BY THE GWATHMEYSIEGEL FIRM AROSE BEHIND WRIGHT'S INVERTED ZIGGURAT TO HOUSE THE COLLECTION AND NEW OFFICES SINCE THE MUSEUM STEADFASTLY REFUSED TO ENTERTAIN SUBTLER SOLUTIONS IT WOULDN'T DIG UNDERGROUND OR BUY A NEARBY BUILDING NOR DID IT STOP REFUSING THE PILES OF MEDIOCRE ART IT RECEIVES AS TAX DEDUCTIONS BY CAGEY COLLECTORS BUT SUBTLETY IS NOT A FAVORED WORD HERE NOW THE MUSEUM IS TRYING TO PLASTER THE NAMES OF PATRONS ALL OVER THE OUTSIDE OF ITS RECENTLY CLEANED BUILDING ONLY THE PROSPECT OF A ZONING BATTLE DERAILED PLANS TO PUBLICLY THANK ONE LARGE DONOR WITH HIS NAME IN BIG LETTERS ON THE UGLY ADDITION WRIGHT'S FAMED ROTUNDA ON FIFTH AVENUE WHICH REQUIRES ONLY PERMISSION FROM THE LANDMARKS COMMISSION FOR EMBELLISHMENT OR EMBLIGHTMENT IS STILL IN PLAY IT IS HERE THAT REAL ESTATE DEVELOPER SAMUEL LEFRAK WISHES TO SEE HIS NAME IN RETURN FOR GIVING THE GUGGENHEIM 10 MILLION SOON THE COMMISSION WILL VOTE ON WHETHER WRIGHT'S ROTUNDA CAN BE EMBLAZONED WITH A SIGN DECLARING IT THE LEFRAK ROTUNDA REDUCED IN VERBOSITY FROM THE ORIGINALLY REQUESTED THE SAMUEL J AND ETHEL LEFRAK ROTUNDA ALREADY IT'S COMMON PRACTICE THROUGH THE MUSEUM WORLD TO EMBLAZON INTERIOR GALLERIES WITH THE NAMES OF BENEFACTORS THERE'S NOTHING REALLY WRONG WITH THAT THOUGH IT'S INTERESTING TO NOTE HOW BIG THOSE LETTERS ARE QUITE DIFFERENT FROM THE DISCRETE FRAME TAGS FAVORED DECADES AGO BY ART PATRON MRS HAVEMEYER BUT WHAT'S NEXT WILL EVERY COLUMN OUTSIDE THE METROPOLITAN FOR INSTANCE SOON BE FESTOONED WITH THE NAMES OF PATRONS WITH THE LARGEST EGOS AND CHECKS IT WAS SOLOMON GUGGENHEIM WHO HAD THE GUTS AND VISION TO HIRE A GREAT ARCHITECT FOR HIS MUSEUM THE MONUMENT TO HIS ACHIEVEMENT SHOULDN'T BE CLUTTERED FOREVER BY ADVERTISEMENTS FOR THE CHECKWRITERS 9404080148 940408 NLRB INDICATES A SHIFT TOWARD LABOR WITH PROPOSAL TO EXPAND UNION ACCESS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL LABOR RELATIONS BOARD SIGNALING A TILT TOWARD ORGANIZED LABOR IS CONSIDERING WHETHER TO ADOPT RULES GIVING UNIONS MORE ACCESS TO EMPLOYEES AT WORK THE BOARD IS WEIGHING PROPOSALS THAT WOULD ALLOW UNIONS EQUAL TIME WHEN COMPANIES FORCE EMPLOYEES TO ATTEND ANTIUNION MEETINGS DURING WORK HOURS SUCH SESSIONS TYPICALLY ARE CALLED DURING CONTENTIOUS BATTLES OVER UNION REPRESENTATION IN ADDITION THE BOARD WILL DEBATE THIS MONTH WHETHER TO SET RULES GOVERNING HOW UNION DUES PAID BY NONMEMBERS CAN BE USED AND WHETHER IT SHOULD SET GUIDELINES FOR WHEN UNION ORGANIZERS CAN COME ON COMPANY PROPERTY IT ALSO IS LOOKING AT WHETHER TO CLARIFY WHAT MAKES UP A UNION BARGAINING UNIT THE AGENDA SET BY NEW CHAIRMAN WILLIAM GOULD IV WOULD GO TO THE HEART OF MANY OF THE MOST HOTLY CONTESTED UNIONMANAGEMENT ISSUES BEGINNING LAST MONTH DEMOCRATS TOOK CONTROL OF THE BOARD FOR THE FIRST TIME IN MORE THAN A DECADE MR GOULD AND OTHERS HAVE VOWED TO RETURN THE BOARD TO THE CENTER OF THE LABORMANAGEMENT SPECTRUM THE BOARD BECAME QUITE ONESIDED UNDER PRESIDENT REAGAN MR GOULD SAID YESTERDAY JUST THE ACT OF ADOPTING RULES WOULD BE AN UNUSUAL STEP FOR THE NLRB THE AGENCY HAS PASSED RULES ON ONLY TWO SUBSTANTIVE LEGAL ISSUES IN ITS HISTORY INSTEAD PREFERRING TO LET ITS CASEBYCASE DECISIONS SET LABOR LAW BUT MR GOULD WHO WORKED AT THE AGENCY 30 YEARS AGO IS DISTRESSED THAT THE BOARD STILL IS DECIDING CASES ON THE SAME ISSUES IT CONSIDERED WHEN HE WAS THERE IN THE 1960S HE SEES REPETITIVE WRANGLING AS A WAY LAWYERS DELAY NLRB DECISIONS AND SAP THE AGENCY'S RESOURCES TOO OFTEN THE BOARD IN THE PAST HAS BEEN BOGGED DOWN IN COMPLEX DOCTRINE AND DOGMA THAT FREQUENTLY HAD US ASKING HOW MANY ANGELS CAN STAND ON THE HEAD OF A LEGAL NEEDLE HE SAID THAT INEVITABLY LEADS TO DELAY AND A WASTING OF THE BOARD'S RESOURCES SEVERAL OF THE TOPICS NOW FACING THE NEW BOARD WILL CENTER ON HOW MUCH ACCESS ORGANIZED LABOR HAS TO COMPANY EMPLOYEES FOR EXAMPLE MANY COMPANIES CURRENTLY HOLD CAPTIVE AUDIENCE MEETINGS REQUIRING WORKERS TO LISTEN TO THE EMPLOYERS' SIDE DURING UNION ELECTIONS BUT THERE IS NO EQUIVALENT MECHANISM FOR UNIONS THE QUESTION IS CAN WE DEVISE RULES FOR BOTH SIDES TO HAVE ACCESS TO EMPLOYEES MR GOULD ASKED EVEN BEFORE THAT ISSUE REACHES THE BOARD HE SAID THE PANEL PROBABLY WILL TAKE UP THE LEGALITY OF UNION ACCESS TO COMPANY PROPERTY IN EARLY 1992 THE SUPREME COURT DECIDED THAT CORPORATIONS CAN PROHIBIT UNION ORGANIZERS FROM ENTERING COMPANY PROPERTY TO COMMUNICATE WITH WORKERS BUT THE COURT DIDN'T ADDRESS WHETHER SUCH ORGANIZERS COULD STAND ON COMPANY PROPERTY OUTSIDE A RETAIL STORE FOR INSTANCE AND HAND OUT PAMPHLETS TO THE GENERAL PUBLIC AN NLRB DECISION ON THE LEGALITY OF SUCH ACTIVITY IS MORE LIKELY TO BE DEALT WITH THROUGH CASE RULINGS RATHER THAN REGULATION ALSO ON THE NEARTERM DOCKET IS AN EFFORT TO CLARIFY THE SOCALLED BECK CASE WHICH DETERMINES HOW UNIONS CAN SPEND DUES THAT NONUNION EMPLOYERS ARE FORCED TO PAY NONMEMBERS HAVE OBJECTED TO THEIR DUES BEING USED FOR POLITICAL PURPOSES AND A RECENT SUPREME COURT RULING SAID THE DUES CAN BE USED ONLY FOR ACTIVITIES GERMANE TO COLLECTIVE BARGAINING MR GOULD SAID HE WOULD LIKE TO CLARIFY THE BECK DECISION SO THE ISSUE WON'T HAVE TO BE LITIGATED FINALLY MR GOULD SAID THE BOARD WILL DEBATE WHAT MAKES UP A COLLECTIVE BARGAINING UNIT LEGAL DISPUTES ABOUND ABOUT WHETHER INDIVIDUAL PLANTS IN MULTIPLANT COMPANIES CAN BE UNIONIZED AND WHETHER SKILLED SEMISKILLED AND UNSKILLED LABOR ALL SHOULD BE REPRESENTED BY THE SAME BARGAINING UNIT WHILE THE BOARD RECENTLY DECIDED THERE WAS A PRESUMPTION IN FAVOR OF SINGLEPLANT UNITS MR GOULD SAID IT DOESN'T SEEM TO HAVE BEEN CLEAR ENOUGH TO DIMINISH THE LITIGATION ONE MATTER NOT ON MR GOULD'S RULEMAKING AGENDA IS THE ISSUE OF WORKERMANAGEMENT TEAMS THEY CURRENTLY ARE ILLEGAL IN MANY FORMS AS A RESULT OF EARLIER NLRB DECISIONS IN CONGRESSIONAL TESTIMONY MR GOULD HAS BACKED EMPLOYEE INVOLVEMENT AND SEVERAL CASES RELATING TO THE LEGALITY OF TEAMS ARE PENDING AT THE BOARD BUSINESS OFFICIALS DECRIED MR GOULD'S AGENDA HE MADE IT VERY CLEAR IN HIS BOOK THAT CAME OUT DURING HIS NOMINATION THAT HE HAS AN AGENDA FOR REFORM SAID JEFF MCGUINESS PRESIDENT OF THE LABOR POLICY ASSOCIATION NOW HE APPEARS TO BE TAKING STEPS TO IMPLEMENT THAT AGENDA 9404080147 940408 COMMODITIES COPPER FUTURES STILL STAGE TECHNICAL RECOVERY SPURRED BY RUMORS LONDON INVENTORIES ARE LOW BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COPPER FUTURES PRICES CONTINUED TO STAGE A TECHNICAL RECOVERY SPURRED ON BY RUMORS THAT LONDON METAL EXCHANGE INVENTORIES MAY HAVE DECLINED AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR MAY DELIVERY WAS UP 11 CENTS AT 8680 CENTS A POUND THE PRICE OF THE ACTIVELY TRADED MAY CONTRACT HAS FALLEN FROM ITS HIGH OF 9320 REACHED MARCH 16 AMID CONCERNS THAT DEMAND WAS WEAKER THAN ORIGINALLY ANTICIPATED AND ACTUAL HEAVY SELLING BY COMMODITY FUNDS EARLIER THIS WEEK THE MARKET HAD FALLEN TO A RATHER ATTRACTIVE LEVEL WHICH HAS TRIGGERED A NICE RALLY SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH & CO SOME ANALYSTS AND TRADERS ATTRIBUTED YESTERDAY'S UPWARD MOVE IN COPPER FUTURES PRICES TO THE CONTINUED RECOVERY OF THE STOCK MARKET LATE THIS WEEK AND FEWER FEARS THAT INTEREST RATES WILL RISE SHARPLY IN THE SHORT TERM THEY ALSO CITED RUMORS THAT INVENTORY FIGURES TO BE RELEASED TODAY BY THE LONDON METAL EXCHANGE WILL SHOW THAT STOCKS OF THE METAL ARE LOWER THAN ORIGINALLY ANTICIPATED BERNARD SAVAIKO SENIOR ANALYST AT PAINEWEBBER INC NOTED THAT THE LOW PRICES PROMPTED INDUSTRIAL USERS OF COPPER TO RETURN TO THE MARKET AS BUYERS BUT MOST OBSERVERS AGREE THAT THE RALLY IS MORE TECHNICAL IN NATURE RICHARD HIRSCH VICE PRESIDENT OF SHARPS PIXLEY A COMMODITY BROKERAGE HOUSE AND MEMBER OF DEUTSCHE BANK AG SAID THAT THE OPEN INTEREST IN THE MAY CONTRACT HAS DROPPED NOTICEABLY IN RECENT DAYS THE OPEN INTEREST IS THE NUMBER OF CONTRACTS STILL TO BE SETTLED MR HIRSCH NOTED THAT MANY INVESTORS WHO HAD OWNED THE MAY COPPER CONTRACTS FOR SEVERAL MONTHS OPTED TO SELL THEIR HOLDINGS BUT HE SAID THE MOVE IS TECHNICALLY NOT BEARISH SINCE THE REDUCTION IN OPEN INTEREST THAT RESULTS MAKES THE MARKET MORE PRONE TO BOUNCE UPWARD AGAIN BUT FUNDAMENTAL CONCERNS MAY RESTRICT THE METAL'S ABILITY TO RETURN TO ITS HIGH LEVEL OF THE YEAR FIRST OF ALL THE SECOND QUARTER IS TRADITIONALLY A SLUGGISH PERIOD FOR COPPER PURCHASES AS MANUFACTURERS PREPARE FOR SEASONAL DOWNTIME AND MAINTENANCE OVER THE SUMMER SECONDLY WORRIES PERSIST ABOUT DEMAND LEVELS NOT ONLY IN THE US BUT ALSO IN EUROPE AND ASIA OF PARTICULAR CONCERN IS THE SPECULATION THAT CHINA TRADITIONALLY A LARGE BUYER OF COPPER MAY PURCHASE MUCH LESS THAN EXPECTED THIS YEAR ONE POTENTIAL NEGATIVE IS THAT WE COULD SEE LME WAREHOUSE STOCKS MOVE UP AGAIN MR O'NEILL SAID WITHOUT ANY INDICATION OF IMMINENT CHINESE PURCHASES COPPER FUTURES MAY NOT MAINTAIN THEIR UPWARD MOMENTUM IN OTHER COMMODITY MARKETS YESTERDAY COFFEE COFFEE FUTURES PRICES EXTENDED THEIR GAINS ON NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE WITH COFFEE FOR MAY DELIVERY REACHING 8395 CENTS A POUND UP 090 CENTS MR O'NEILL OF MERRILL LYNCH SAID A TIGHT SUPPLY OF THE COMMODITY IN EUROPE HELPED PROPEL PRICES HIGHER FOR THE SECOND CONSECUTIVE DAY BUT PAINEWEBBER'S MR SAVAIKO SAID HE EXPECTS COFFEE PRICES TO HIT RESISTANCE IN THE VICINITY OF 8475 TO 8570 CENTS A POUND DESPITE CONTINUING CONCERNS ABOUT LOW INVENTORY LEVELS AND THE POSSIBILITY OF LOWER EXPORTS FROM BRAZIL AND COLOMBIA ENERGY CRUDE OIL AND PRODUCT FUTURES PRICES FELL WITH MUCH OF THE DECLINE RELATED TO WEAKNESS IN THE GASOLINE MARKET WHERE SUPPLIES ARE SEEN AS AMPLE TRADERS SAID THE MARKET WAS ALSO PRESSURED BY EXPECTATIONS OF INCREASED IMPORTS OF CRUDE OIL FROM THE NORTH SEA AND WEST AFRICA THIS IS BECAUSE PRICES IN THE US HAVE RISEN FASTER THAN OTHER MARKETS MAKING IMPORTS MORE ATTRACTIVE ON A COST BASIS PRODUCTION IN THE NORTH SEA JUMPED SHARPLY DURING THE FIRST QUARTER OVER YEAREARLIER LEVELS A FACTOR THAT HAS WEIGHED HEAVILY ON OIL PRICES DURING RECENT WEEKS WITHOUT ANY SIGNIFICANT NEWS TO MOVE PRICES TRADERS YESTERDAY FOCUSED ON TECHNICAL FACTORS AS WELL 9404080146 940408 CREDIT MARKETS TREASURY PRICES RISE BUT MORTGAGE SECTOR FALTERS DUE TO FALLOUT FROM SELLOFF OF ASKIN HOLDINGS BY ABBY SCHULTZ AND GENE COLTER SPECIAL TO THE WALL STREET JOURNAL NEW YORK TREASURY PRICES ROSE BUT SENTIMENTS REMAINED GLOOMY IN SOME BONDMARKET SECTORS ESPECIALLY IN CERTAIN EXOTIC MORTGAGEBACKED SECURITIES THE BENCHMARK 30YEAR TREASURY BOND ROSE 3/8 POINT OR 375 FOR A BOND WITH 1000 FACE VALUE TO 88 9/32 ITS YIELD DROPPED TO 720 FROM 724 THE FORCED LIQUIDATION OF ASKIN CAPITAL MANAGEMENT'S MORTGAGESECURITIES HOLDINGS HAS BEEN BAD NEWS FOR THE LUCRATIVE BUSINESS OF SELLING COMPLEX MORTGAGEBACKED OFFERINGS WITH ASKIN NO LONGER MAKING PURCHASES THE MARKET HAS BEEN DEPRIVED OF A HUGE BUYER OF SOME OF THE MOST RISKY PORTIONS OF COLLATERALIZED MORTGAGE OBLIGATIONS OR CMOS WHICH HAD FETCHED SOME OF THE BIGGEST UNDERWRITING PROFITS ON WALL STREET ASKIN'S TROUBLES ADDED TO WEAKNESS IN THE MORTGAGEBACKEDSECURITIES MARKET CREATED BY THE RECENT PLUNGE IN BOND PRICES AND IT CREATED A SITUATION OF ILLIQUIDITY WHERE EVEN SELLERS HAVING NOTHING TO DO WITH ASKIN ARE HAVING TROUBLE MAKING TRADES SO NERVOUS ARE SOME INVESTORS THAT THEY HAVE LOST FAITH IN THE PRICES BEING QUOTED TO THEM BY MAJOR WALL STREET DEALERS FOR CERTAIN MORTGAGEBACKED SECURITIES THEY FEAR THAT DEALERS MAY BE LESS INTERESTED IN THEIR CLIENTS AND MORE INTERESTED IN SAVING THEMSELVES FROM MASSIVE LOSSES ON SHARPLY DEVALUED MORTGAGEBACKED SECURITIES ASKIN MANAGED THREE HEDGE FUNDS AND SEVERAL OTHER ACCOUNTS TOTALING 600 MILLION MUCH OF THAT INVESTED IN CMOS WALL STREET DEALERS FORCED THE FIRM LAST WEEK TO FORFEIT ITS BOND PORTFOLIOS WHICH HAD BEEN PLEDGED AS COLLATERAL AGAINST BILLIONS OF DOLLARS OF LOANS FROM THOSE FIRMS CMOS ARE CREATED FROM POOLS OF MORTGAGE PASSTHROUGHS WITH SIMILAR COUPONS DEALERS CARVE UP THE CASH FLOWS FROM THE UNDERLYING POOL OF LOANS TO CREATE BONDS OF VARIOUS MATURITIES RISKS AND VOLATILITIES WHEN PASSTHROUGHS ARE INEXPENSIVE DEALERS CAN PROFIT BY SIMPLY SCOOPING THEM UP AND REPACKAGING THEM INTO BONDS WITH SHORTER MATURITIES AND HIGHER PRICES CMOS ARE DESIGNED TO APPEAL TO A RANGE OF BUYERS WITH SOME PORTIONS OR TRANCHES TAILORED TO PROVIDE RELATIVELY HIGH RISK AND COMPARABLE REWARDS AND OTHERS STRUCTURED TO BE FAIRLY TAME ISSUANCE OF CMOS IS DRIVEN BY THE ABILITY OF THE BANKERS WHO CREATE THEM TO SELL THE RISKIER CLASSES SINCE THE OTHER PORTIONS APPEAL TO A WIDER AUDIENCE OF INVESTORS DAVID ASKIN PRINCIPAL OF THE MONEYMANAGEMENT FIRM AND THE FORMER HEAD OF FIXEDINCOME RESEARCH AT DREXEL BURNHAM LAMBERT IN ITS HEYDAY WAS ONE OF THE BIGGEST CONSUMERS OF THE VOLATILE RISKIER CLASSES OF SUCH REALESTATE MORTGAGEINVESTMENT CONDUITS WITH HIS FIRM OUT OF THE MARKET THE ABILITY OF UNDERWRITERS TO COMPLETE SUCH DEALS HAS BEEN SEVERELY HANDICAPPED ONE RESULT OF THE MARKET ILLIQUIDITY CREATED BY ASKIN'S TROUBLES IS THAT MANY WALL STREET BANKS HAVE BEEN UNWILLING TO BID FOR BONDS SAID SOME MARKET PARTICIPANTS MARKET MAKERS ARE NOT SUPPORTING THEIR CUSTOMERS SAID CHUCK RAMSEY A PRINCIPAL AT ALEX BROWN & SONS REGIONAL BROKERS HAVE BENEFITED FROM THIS ILLIQUIDITY BY SERVING AS MIDDLEMEN BETWEEN MAJOR ACCOUNTS AND WALL STREET MR RAMSEY SAID ONE REASON THEY ARE GOING THROUGH REGIONAL BROKERS SUCH AS ALEX BROWN IS THAT THEY DON'T TRUST THE PRICES THEY ARE GETTING FROM THE INVESTMENT BANKS MR RAMSEY SAID BUT MAJOR INVESTORS IN DERIVATIVE MORTGAGE SECURITIES COUNTERED THAT PRICES OF THE RISKIER BONDS WHILE STILL LOW ARE BEGINNING TO STABILIZE LEADING TO GREATER CONFIDENCE IN THE OVERALL MORTGAGEBACKEDSECURITIES MARKET AMONG THE BROADER GROUP OF MORTGAGE INVESTORS MANY PARTICIPANTS IN THE MORTGAGEBACKEDSECURITIES MARKET BELIEVE ASKIN'S ROLE IN THE MARKET WAS BIG ENOUGH TO SLOW DOWN CMO DEALS FOR THE TIME BEING THE PERCENTAGE OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION'S 30YEAR MORTGAGEBACKED SECURITIES THAT HAVE BEEN REPACKAGED INTO REMICS HAS FALLEN TO 75 FROM AS HIGH AS 90 IN THE FALL OF 1993 ACCORDING TO TRADERS ASKIN WAS A BIG BUYER OF CMO DEALS FROM GENERAL ELECTRIC CO UNIT KIDDER PEABODY & CO EQUITABLE COS UNIT DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND BEAR STEARNS COS UNIT BEAR STEARNS & CO OFFICIALS AT KIDDER AND BEAR STEARNS WOULDN'T COMMENT ON ASKIN RICHARD WHITING THE HEAD OF DONALDSON'S MORTGAGE DESK WOULDN'T DISCUSS HIS FIRM'S RELATIONSHIPS WITH ASKIN BUT HE DID NOTE THAT INVESTMENT BANKS HAVE MADE A LOT OF MONEY IN MORTGAGEBACKED DERIVATIVES OVER THE PAST YEARS IN THE CONTEXT OF THE PROFITS OF THE PAST I DON'T THINK IT'S DEBILITATING FOR MOST PEOPLE HE SAID EVERYBODY IS PREPARED TO TAKE A NEGATIVE JOLT FROM THE MARKET IF DIFFICULTIES IN CREATING CMOS PERSIST THE WHOLE REALESTATE FINANCING SYSTEM COULD BACK UP TO THE EXTENT THAT HOMEOWNERS WOULD ULTIMATELY PAY MORE FOR FINANCING BUT SOME INVESTORS SAY THE PRICES OF EXOTIC CMO CLASSES HAVE RECOVERED SOMEWHAT SINCE THE ASKIN LIQUIDATION BECAME KNOWN AND SHOULD RECOVER MORE BY THE END OF THE MONTH ALTHOUGH PRICES OF US TREASURY NOTES AND BONDS SEESAWED OVER THE COURSE OF THE SESSION THEY ENDED WITH GAINS YESTERDAY AS THE MARKET CONTINUED TO CONSOLIDATE AFTER ITS RECENT STEEP DECLINES ACTIVITY WAS DOMINATED BY DEALERS AND SHORTTERM SPECULATIVE ACCOUNTS THE 10YEAR NOTE ROSE NEARLY 3/8 POINT TO 92 30/32 TO YIELD 685 DOWN FROM 69 ON WEDNESDAY MOST OF THE BUYING WAS RELATED TO THE UNWINDING OF POSITIONS IN WHICH DEALERS HAD SOLD TREASURYS SHORT AS HEDGES AGAINST INVENTORIES OF MORTGAGEBACKED AND MUNICIPAL SECURITIES TRADERS SAID A TRADER TAKES A SHORT POSITION BY SELLING A BORROWED SECURITY IN THE HOPES OF REPLACING IT LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE AFTER TAKING MORE OF A BEATING THAN TREASURYS CERTAIN PLAINVANILLA MORTGAGE SECURITIES AND MUNICIPALS HAVE NOW RALLIED SIGNIFICANTLY FOR THREE CONSECUTIVE DAYS AS INVESTORS VIEWED PRICES AS EXTREMELY ATTRACTIVE THAT ISN'T THE CASE FOR MUCH OF THE MARKET FOR EXOTIC AND VOLATILE MORTGAGEBACKED SECURITIES SUCH AS CMOS WHICH CONTINUED TO WOBBLE DEALERS WERE USING TREASURYS AS THE SELL' SIDE OF THE HEDGE AGAINST THESE OTHER MARKETS SAID BILL FEEZER AN EXECUTIVE VICE PRESIDENT AT SANWA SECURITIES INC BUT MORTGAGES GOT TO HISTORICALLY WIDE SPREADS AGAINST TREASURYS AND GUYS CAME IN AND STARTED BUYING SO NOW DEALERS ARE TAKING THE TREASURYS BACK HE SAID THE HEAVY SELLING OF OTHER FIXEDINCOME PRODUCTS PLAYED A MAJOR ROLE IN ACCELERATING THE BOND MARKET'S DECLINES TRADERS HAVE SAID BUT THAT SEEMS TO BE OVER FOR THE MOMENT BECAUSE A SHORT SALE INVOLVES THE SELLING OF A SECURITY THAT HAS BEEN BORROWED AND WILL BE REPLACED LATER AN OFFSHOOT OF THE HEAVY SHORT SELLING OF TREASURYS HAS BEEN A SCARCITY OF THE ISSUES TYPICALLY USED FOR HEDGING THE HARDESTTOBORROW SECURITY HAS BEEN THE 10YEAR NOTE IN THE REPO MARKET WHICH IS THE ARENA IN WHICH FIRMS LEND CASH IN EXCHANGE FOR THE TEMPORARY USE OF THE SECURITIES THE DEMAND FOR THE ISSUE HAS FORCED FIRMS ESSENTIALLY TO GRANT LOANS AT RATES AS LOW AS 025 TO OBTAIN ACCESS TO 10YEAR NOTES IN REPOMARKET JARGON WHEN AN ISSUE TRADES AT SUCH A LOW RATE IT IS ON SPECIAL THE SCARCITY OF THE 10YEAR NOTES ALSO HAS ATTRACTED THE ATTENTION OF THE FEDERAL RESERVE BANK OF NEW YORK AS IT HAS DONE WITH OTHER ISSUES ON SPECIAL THE FED SAID IT WAS REQUIRING PRIMARY DEALERS TO PROVIDE DAILY WRITTEN REPORTS ON FINANCING AND POSITIONING IN THE 10YEAR NOTE AS PART OF OUR CONTINUING SURVEILLANCE OF THE MARKET FROM TIME TO TIME WE HAVE ASKED DEALERS FOR INFORMATION ABOUT PARTICULAR SECURITIES A SPOKESMAN FOR THE BANK SAID IN THE WAKE OF THE SALOMON BROTHERS TREASURYAUCTION SCANDAL THE FED AND THE TREASURY DEPARTMENT HAVE BEEN ON GUARD FOR DEALERS CORNERING ISSUES IN WHAT ARE KNOWN AS REPOMARKET SQUEEZES BUT PLAYERS SAID THE DEMAND FOR THE 10YEAR NOTES APPEARED TO BE LEGITIMATE THE LOW RATE IS REFLECTIVE OF THE 10YEAR BEING USED FOR HEDGING SAID JOHN FRIEL A MANAGING DIRECTOR AT DONALDSON LUFKIN & JENRETTE SECURITIES WITH THE HELP OF THE REVERSAL OF HEDGE POSITIONS THE TREASURY MARKET APPEARS TO HAVE FOUND A DEGREE OF STABILITY BUT TRADERS SAID THE CALM WON'T LAST FOREVER NEXT WEEK FOR EXAMPLE THE MARKET WILL HAVE TO CONTEND WITH A FULL SLATE OF ECONOMIC DATA INCLUDING FIGURES ON PRODUCER AND CONSUMER PRICES AS WELL AS THE MONTHLY RETAILSALES REPORT A QUIET TONE PREVAILED AND TRADING REMAINED THIN AS ONLY PHILIPS ELECTRONICS NV SHAWMUT NATIONAL CORP UNIT SHAWMUT BANK CONNECTICUT NA AND WACHOVIA CORP UNIT WACHOVIA BANK OF NORTH CAROLINA NA SOLD CORPORATE DEBT OFFERINGS FROM THE FEDERAL HOME LOAN BANK SYSTEM BOOSTED THE TOTAL DEBT SOLD TO MORE THAN 12 BILLION MEANWHILE STANDARD & POOR'S CORP REVISED ITS RATINGS OUTLOOK ON PRESIDENT RIVERBOAT CASINOS INC TO STABLE FROM POSITIVE AS A RESULT OF TUESDAY'S DEFEAT OF THE RIVERBOATGAMBLING AMENDMENT IN MISSOURI THE DEFEAT HURTS PRESIDENT MORE THAN MOST GAMING COMPANIES DUE TO THE SIGNIFICANT IMPACT GAMING IN MISSOURI WAS TO HAVE ON THE COMPANY S&P SAID BUT THE BONDS OF PRESIDENT AND OTHER RIVERBOATGAMBLING COMPANIES REMAINED BASICALLY UNCHANGED AFTER SHARP PRICE DECLINES WEDNESDAY TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT WITH SPREADS UNCHANGED TRADING IN THE JUNKBOND MARKET WAS ALSO LIGHT WITH PRICES UNCHANGED MUNICIPAL BONDS CONTINUED THEIR REBOUND AND WERE UP A POINT OR MORE IN LATE TRADING AS INVESTORS FOCUSED ON THE MARKET'S BARGAINBASEMENT PRICES AND TEMPTING YIELDS AMONG CLOSELY WATCHED ISSUES THE NEW YORK STATE ENVIRONMENTAL FACILITIES CORP'S 5875 OF 2014 BONDS WERE ABOUT 1 1/2 POINTS HIGHER AT 94 5/8 YIELDING 630 YESTERDAY THERE WAS BROADBASED PARTICIPATION BY BUYERS AND AN ABSENCE OF THE SELLING LISTS THAT PLAGUED THE MARKET RECENTLY SAID PETER TAYLOR A TRADER AT DILLON READ & CO MARKET PARTICIPANTS FELT COMFORTABLE ENOUGH TO LOAD UP ON MUNIS AGAIN EVEN THOUGH IT IS A LITTLE TOO EARLY TO CALL US OUT OF THE WOODS HE SAID DEALER INVENTORIES ARE DECLINING DUE TO THE PICKUP IN PURCHASES THE SUPPLY SITUATION HAS ALSO BEEN HELPED BY THE DEARTH OF NEW ISSUES THIS WEEK WELL OVER 1 BILLION OF NEW OFFERINGS HAD BEEN EXPECTED BUT MANY WERE POSTPONED OR PUT ON A DAYTODAY PRICING BASIS DUE TO THE MARKET'S EARLIER WEAKNESS THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9404080145 940408 CORRECTIONS & AMPLIFICATIONS AN ENVIRONMENTAL PROTECTION AGENCY REPORT ON EMISSIONS ASSOCIATED WITH ELECTRIC CARS INCLUDED A CHART COMPARING CARBON DIOXIDE OUTPUT FROM CONVENTIONAL CARS AND FROM THE GENERATION OF POWER TO CHARGE ELECTRICVEHICLE BATTERIES A MARKETPLACE ARTICLE TUESDAY INCORRECTLY REPORTED THAT THE CHART COMPARED CARBON MONOXIDE EMISSIONS FROM THE TWO SOURCES SUN MICROSYSTEMS INC'S THIRDQUARTER NET INCOME OF 60 CENTS A SHARE WAS BELOW ANALYSTS' ESTIMATES MADE BEFORE MARCH 31 BUT ABOVE PROJECTIONS MADE AFTER THAT DAY WHEN THE COMPANY DISCLOSED THAT REVENUE FOR THE PERIOD WOULD BE LOWER THAN EXPECTED AN ARTICLE THURSDAY INCORRECTLY SAID SUN'S EARNINGS WERE BELOW EXPECTATIONS 9404080144 940408 MELENDEZ TO SUCCEED O'CONNELL AS PRESIDENT OF INDEPENDENT SECTOR WASHINGTON INDEPENDENT SECTOR THE NATIONAL PHILANTHROPIC ORGANIZATION NAMED SARA E MELENDEZ 53 YEARS OLD AS ITS NEW PRESIDENT EFFECTIVE SEPT 1 INDEPENDENT SECTOR IS A NONPROFIT COALITION OF OVER 800 CORPORATE FOUNDATION AND VOLUNTARY ORGANIZATION MEMBERS DR MELENDEZ IS CURRENTLY PRESIDENT OF THE CENTER FOR APPLIED LINGUISTICS IN WASHINGTON DR MELENDEZ WILL SUCCEED BRIAN O'CONNELL 64 WHO FOUNDED INDEPENDENT SECTOR 14 YEARS AGO AND HAS BEEN ITS PRESIDENT SINCE THEN MR O'CONNELL WILL JOIN THE LINCOLN FILENE CENTER AT TUFTS UNIVERSITY IN BOSTON 9404080143 940408 TECHNOLOGY & HEALTH SALES OF APPLE'S NEW LINE OF POWER MACS TOP FORECASTS AT MANY COMPUTER STORES BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF APPLE COMPUTER INC'S NEW LINE OF POWERPCBASED MACINTOSHES ARE RUNNING AHEAD OF EXPECTATIONS IN MANY COMPUTER STORES GIVING THE COMPANY EARLY MOMENTUM IN ITS QUEST TO BOOST SLOWED MARKETSHARE GROWTH DISTRIBUTORS REPORT VIBRANT SALES OF APPLE'S POWER MACINTOSH PERSONAL COMPUTERS SINCE THEY WERE LAUNCHED MARCH 14 WITH SOME OUTLETS HAVING SOLD OUT ON CERTAIN MODELS WE HAVE NO POWER MACINTOSHES LEFT AND WE ARE VERY PROUD OF THAT SAID DONYA MULLINS COOWNER OF MICROAGE COMPUTER CENTER OF THE TRIAD A GREENSBORO NC OUTLET THAT SOLD ITS ALLOTMENT OF 20 POWER MACS INGRAM MICRO INC A BIG DISTRIBUTOR BASED IN SANTA ANA CALIF REPORTS ITS STOCK OF POWER MACINTOSHES WASN'T ENOUGH TO MEET DEMAND AND THAT IT HAS A SMALL BACKLOG OF ORDERS THE MOVEMENT OF THE PRODUCT WAS BRISK AND DEMAND REMAINS STRONG SAID DAVE JASKULKE INGRAM MICRO'S DIRECTOR OF APPLE PRODUCT SALES HE ADDED APPLE BROUGHT POWER MACINTOSH TO MARKET WHEN IT SAID IT WOULD AND CUSTOMERS REPORT FEW PROBLEMS RUNNING THE MACHINES THE NEW PCS RANGE IN PRICE FROM 1800 TO 5300 OFFICIALS AT CUPERTINO CALIFBASED APPLE WOULDN'T DIVULGE ANY SALES NUMBERS BUT A SPOKESWOMAN SAID WE ARE VERY HAPPY WITH HOW THINGS ARE GOING APPLE OFFICIALS HAD SAID AT THE LAUNCH IN NEW YORK CITY THAT THEY ALREADY HAD BOOKED 150000 POWER MACINTOSH ORDERS WITH A GOAL OF SHIPPING ONE MILLION WITHIN A YEAR ANALYSTS SAY APPLE APPEARS TO BE AHEAD OF ITS SALES PLAN WITH A BACKLOG OF ORDERS OF UP TO TWO WEEKS ON SOME COMPUTERS IT'S NOT LIKE MCDONALD'S YET MILLIONS AND MILLIONS SOLD BUT THIS IS THE BEST THEY COULD HAVE HOPED FOR SAID MARK MACGILLIVRAY MANAGING DIRECTOR OF H&M CONSULTING AN INDUSTRY CONSULTING CONCERN IN SUNNYVALE CALIF BECAUSE NEW COMPUTER PRODUCTS ARE OFTEN SNAPPED UP BY GADGET HOUNDS THE EARLY SALES RESULTS DON'T INDICATE HOW THE POWER MAC SALES WILL HOLD UP LONG TERM APPLE'S MUCHTOUTED NEWTON MESSAGEPAD FOR INSTANCE SOLD BRISKLY IN THE WEEKS AFTER BEING INTRODUCED LAST SUMMER ONLY TO FLOUNDER IN LATER MONTHS AMID USER COMPLAINTS OVER ITS FLAWED HANDWRITING RECOGNITION APPLE RECENTLY RELEASED AN IMPROVED MESSAGEPAD BUT DISTRIBUTORS SAY SALES REMAIN SLOW STILL APPLE HAS SO MUCH RIDING ON POWER MACINTOSH THAT IT WOULD HAVE BEEN A DISASTER HAD SALES OF THE NEW COMPUTERS NOT STARTED OFF SO WELL COMMITTED TO TRANSFORMING THE ENTIRE MACINTOSH LINE TO THE COMPUTERS BASED ON THE ROBUST POWERPC CHIP WHICH SERVES AS THE BRAINS OF A PC APPLE IS LITERALLY BETTING THE COMPANY ON POWER MACINTOSH'S OUTCOME THROUGH THE TRANSITION APPLE HAS TO WALK THE TIGHTROPE OF SELLING THE NEW MACINTOSHES WITHOUT CANNIBALIZING SALES ON ITS MAINSTAY LINE OF OLDER MACINTOSH QUADRAS SO FAR DISTRIBUTORS REPORT THEIR QUADRA SALES ARE HOLDING UP STRONG INGRAM MICRO IN FACT SAID MARCH WAS ITS STRONGEST MONTH EVER FOR QUADRA SALES AND OFFICIALS THERE ATTRIBUTE THAT COMPUTER'S LOWERED PRICE WITH A PC MARKET SHARE STUCK AT AROUND 11 WORLDWIDE APPLE HOPES BOTH TO HOLD ONTO ITS TRADITIONAL BASE OF MAC LOYALISTS AND ATTRACT NEW CUSTOMERS FROM THE RIVAL CAMP OF PCS THAT RUN ON INTEL CORP CHIPS AND MICROSOFT CORP'S DOS AND WINDOWS OPERATING SYSTEMS AS THE INTELMICROSOFT PCS COMMAND SOME 85 OF THE MARKET AND A RESULTING BIGGER SHARE OF THE SOFTWARE PROGRAMS THAT SELL COMPUTERS APPLE HAS ITS WORK CUT OUT ESPECIALLY GIVEN THE FACT THAT SANTA CLARA CALIFBASED INTEL HAS DECLARED WAR BY FLOODING THE MARKET WITH POWERFUL PENTIUM CHIPS AT DISCOUNTED PRICES AS EXPECTED THE FIRST ITERATIONS OF THE POWER MACINTOSH ARE SELLING MOSTLY TO MAC USERS WANTING MORE POWER AND PERFORMANCE IT SEEMS TO BE FAIRLY ORDINARY MAC PEOPLE WHO HAVE BEEN WAITING TO UPGRADE FROM AN OLDER MACHINE SAID KEN KRICH PRESIDENT OF COMPUTERWARE A NINESTORE CHAIN THAT SELLS APPLE PRODUCTS IN THE SAN FRANCISCO BAY AREA MR KRICH ADDED THAT POWER MACINTOSH SALES HAVE BEEN STRONG AT HIS STORES SINCE THE LAUNCH AND THAT HE EXPECTS EVEN MORE HEAVY PURCHASING AS ADDITIONAL SOFTWARE PROGRAMS ARE RELEASED THAT ARE WRITTEN TO RUN AT THE MACHINE'S HIGH SPEED DAVID NESS A COMPUTER SPECIALIST AT COMPETITRACK A NEW YORK ADVERTISING TRACKING SERVICE THAT NOW USES ABOUT 20 OLDER MACS SAID HIS COMPANY WILL PICK UP A COUPLE OF POWER MACS LATER THIS YEAR WHEN MORE PROGRAMS ARE OUT THERE'S NO REASON FOR US TO BUY RIGHT NOW MR NESS SAID CURRENTLY ONLY A FEW PROGRAMS ARE AVAILABLE FOR POWER MACINTOSH ALTHOUGH IT RUNS ALL THE OLD MACINTOSH PROGRAMS AT QUADRA SPEEDS AS WELL AS SLOWEDDOWN VERSIONS OF DOS AND WINDOWS 9404080142 940408 METALS INDUSTRY HAD CHILLING FIRST QUARTER FOUL WEATHER RAISED COSTS HURT PROFIT BUT RESULTS MAY SHOW LATE GAINS BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL THE FRIGID WINTER SAPPED MAJOR STEELMAKERS' FIRSTQUARTER EARNINGS AS THE HARSH FREEZE CAUSED POWER OUTAGES AND EQUIPMENT FAILURES CUTTING PRODUCTION AND INCREASING COSTS MEANWHILE GLOBAL GLUT AND PRODUCTION CUTS HIT ALUMINUM MAKERS THE REAL THEME HERE IS THE WEATHER THAT AFFECTED STEEL IN JANUARY AND PART OF FEBRUARY SAYS R WAYNE ATWELL AN ANALYST WITH MORGAN STANLEY BUT A STRONG MARCH SPURRED BY DEMAND FROM AUTOMOBILE MAKERS AND NONRESIDENTIAL CONSTRUCTION MAY HAVE HELPED MAKE UP FOR THE WINTER'S HIGH COSTS STEELMAKERS' MARCH PERFORMANCE REPORTS COULD CONCEIVABLY SURPRISE MANAGEMENT AS WELL AS OBSERVERS MR ATWELL SAYS AND THAT STRONG MARCH SHOULD LEAD TO AN EVEN BETTER SECOND QUARTER IF YOU LOOK BEYOND WINTER THE SECOND QUARTER IS GOING TO KNOCK YOUR SOCKS OFF SAYS JORDAN ESTRA AN ANALYST WITH MERRILL LYNCH IN THE FIRST QUARTER STEEL SHIPMENTS CLIMBED 3 TO 225 MILLION TONS FROM 218 MILLION TONS A YEAR EARLIER ESTIMATES MICHAEL MONTGOMERY A SENIOR ASSOCIATE WITH DRI/MCGRAW HILL WHILE THE GROWTH IN SHIPMENTS MAY SEEM SMALL MR MONTGOMERY POINTS OUT THAT IT'S TOUGH TO SHOW A BIG INCREASE FOR AN INDUSTRY OPERATING AT OVER 90 CAPACITY AND ON JAN 1 BIG STEELMAKERS RANG IN THE NEW YEAR WITH A 3 SPOTPRICE INCREASE SINCE 1993'S FIRST QUARTER SPOT PRICES HAVE CLIMBED AS MUCH AS 15 MR ESTRA SAYS STILL THE FORTUNES OF INDIVIDUAL STEELMAKERS ARE MIXED BASED ON SEVERAL FACTORS THE LARGEST BEING THE FRIGID FIRST TWO MONTHS OF THE FIRST QUARTER AT USX CORP'S US STEEL GROUP THE HARSH WINTER CUT VOLUMES BY AT LEAST 100000 TONS TO 25 MILLION TONS FROM AN EXPECTED 26 MILLION TONS ESTIMATES JOHN C TUMAZOS AN ANALYST WITH DONALDSON LUFKIN & JENRETTE IN JANUARY US STEEL HAD A SIZABLE LOSS HE SAYS US STEEL'S EARNINGS ALSO SUFFERED FROM AN ACCIDENT AT ITS MON VALLEY WORKS NEAR PITTSBURGH A LADLE SPILLED MOLTEN STEEL FORCING THE COMPANY TO SHUT DOWN FOR ABOUT 10 DAYS ITS CONTINUOUS CASTER WHICH TURNS LIQUID STEEL INTO SLABS ANALYSTS ARE AT ODDS ABOUT US STEEL EARNINGS SOME PREDICTING A GAIN OF 55 CENTS A SHARE AND OTHERS A LOSS OF 25 CENTS A SHARE WITH CONSENSUS AT PROFIT OF 21 CENTS A SHARE ACCORDING TO FIRST CALL A UNIT OF THOMSON FINANCIAL SERVICES A YEAR EARLIER US STEEL EARNED 18 CENTS A SHARE CHARLES A BRADFORD AN ANALYST WITH UBS SECURITIES BELIEVES THE WEATHER ACCIDENT AND BONUSES PAID TO WORKERS UNDER A NEW CONTRACT WILL PUSH US STEEL INTO THE RED FOR THE QUARTER BETHLEHEM STEEL CORP HAD SEVERAL OUTAGES IN THE QUARTER ITS MAJOR BLAST FURNACE AT ITS BETHLEHEM PA MILL FAILED FORCING THE COMPANY TO RELY ON A SMALLER LESS EFFICIENT FURNACE ON TOP OF THAT A PLANNED BLASTFURNACE OUTAGE FOR MAINTENANCE AT BETHLEHEM'S BURNS HARBOR IND PLANT CAUSED THE COMPANY TO BUY SLAB STEEL AND REBUILDING A COKE OVEN THERE MADE BETHLEHEM TURN TO OUTSIDERS FOR THE BLASTFURNACE FUEL SAYS MR TUMAZOS DESPITE ITS PROBLEMS ANALYSTS EXPECT BETHLEHEM TO POST EARNINGS OF 20 CENTS A SHARE COMPARED WITH A LOSS OF 54 CENTS A YEAR EARLIER TWO OTHER BIG STEELMAKERS LTV CORP AND INLAND STEEL INDUSTRIES INC ALSO ARE EXPECTED TO POST IMPROVED RESULTS ANALYSTS SEE LTV REPORTING EARNINGS OF NINE CENTS A SHARE COMPARED WITH A LOSS OF 43 CENTS A SHARE A YEAR EARLIER THOUGH A COMPARISON IS TOUGH BECAUSE THE COMPANY WAS IN BANKRUPTCYCOURT PROCEEDINGS LAST YEAR INLAND WHICH MR ATWELL SAYS BENEFITED FROM A TURNAROUND AT ITS BAR MILL IS EXPECTED TO REPORT EARNINGS OF THREE CENTS A SHARE COMPARED WITH A LOSS OF 112 A SHARE IN 1993'S FIRST QUARTER ACCORDING TO FIRST CALL NATIONAL STEEL CORP WAS STILL DOGGED BY OPERATIONAL PROBLEMS SAYS CLARENCE MORRISON AN ANALYST WITH PRUDENTIAL SECURITIES BUT ANALYSTS EXPECT THAT IT NARROWED ITS LOSS FROM A YEAR EARLIER TO 57 CENTS A SHARE FROM 219 A SHARE ACCORDING TO FIRST CALL MINIMILLS WERE HIT HARD THROUGHOUT 1993 BY SOARING PRICES FOR SCRAP STEEL THEIR CHIEF RAW MATERIAL BUT SCRAP PRICES STABILIZED IN THE FIRST QUARTER WHICH ALONG WITH HIGHER VOLUMES AND PRICES AIDED RESULTS NUCOR CORP THE NATION'S BIGGEST MINIMILL SHOULD POST EARNINGS OF 41 CENTS A SHARE ACCORDING TO FIRST CALL'S CONSENSUS UP FROM 25 CENTS A SHARE A YEAR EARLIER TAKING INTO ACCOUNT A 2FOR1 STOCK SPLIT SPECIALTY STEELMAKERS FOUGHT SOARING IMPORTS AND FALLING PRICES IN THE PERIOD WITH THE RECESSION IN EUROPE AND WITH MOST OF THE CAPACITY OWNED BY GOVERNMENTS IT'S NOT SURPRISING THEY WANT TO CONTINUE TO PRODUCE AND FIND AN OUTLET IN THE US SAYS MR ESTRA OF MERRILL LYNCH ALLEGHENY LUDLUM CORP FELT THE IMPACT AND ANALYSTS ESTIMATE ITS NET INCOME FELL TO 22 CENTS A SHARE FROM 28 CENTS A SHARE IN 1993'S FIRST QUARTER TAKING INTO ACCOUNT A 2FOR1 STOCK SPLIT ARMCO INC'S LOSS NARROWED TO 13 CENTS A SHARE COMPARED WITH A LOSS OF 25 CENTS A SHARE EXCLUDING A BIG ACCOUNTING CHARGE LAST YEAR ITS NET LOSS WAS 319 A SHARE FOR THE PERIOD LIKE SPECIALTY STEELMAKERS ALUMINUM PRODUCERS ARE FEELING PRESSURE FROM OVERSEAS THOUGH IT'S EVEN MORE SEVERE DESPITE AN AGREEMENT IN JANUARY AMONG SEVERAL NATIONS TO CUT PRODUCTION INVENTORIES REMAINED HIGH IN THE FIRST QUARTER PRICES CLIMBED BUT NOT ENOUGH TO PRODUCE PROFITS ANALYSTS EXPECT ALUMINUM CO OF AMERICA TO POST A LOSS OF THREE CENTS A SHARE ACCORDING TO FIRST CALL THAT EXCLUDES CHARGES OF 75 CENTS A SHARE TO RETIRE DEBT AND 56 CENTS A SHARE TO CLOSE A CALIFORNIA FABRICATING PLANT SAYS MR TUMAZOS ALCOA WAS HOBBLED TOO BY LOWER PRICES OF ALUMINA A RAW MATERIAL USED TO MAKE ALUMINUM A YEAR EARLIER ALCOA EARNED 31 CENTS A SHARE ANOTHER BIG ALUMINUM PRODUCER REYNOLDS METALS CO IS EXPECTED TO POST A LOSS OF 38 CENTS A SHARE COMPARED WITH A LOSS OF 55 CENTS A SHARE IN 1993'S FIRST QUARTER 9404080140 940408 BUSINESS BRIEFS ASHLAND OIL INC'S ASHLAND CHEMICAL CO UNIT ACQUIRED EUROBASE SPA AN ITALIAN PRODUCER PACKAGER AND MARKETER OF CHEMICALS FOR THE SEMICONDUCTOR INDUSTRY ALTAMIRA MANAGEMENT LTD ACQUIRED A CONTROLLING INTEREST IN REGENT PACIFIC GROUP LTD AN INVESTMENT MANAGEMENT COMPANY WITH OPERATIONS IN HONG KONG AND BRITAIN VALLEY FORGE CORP ENTERED A LETTER OF INTENT TO ACQUIRE GUEST CO A MANUFACTURER OF MARINE PRODUCTS BASED IN MERIDEN CONN TERMS WEREN'T DISCLOSED TRW INC RECEIVED A FOURYEAR 61 MILLION CONTRACT TO BUILD THE FIRST SPACECRAFT IN TAIWAN'S NEW CIVILIAN SPACE PROGRAM WESTINGHOUSE ELECTRIC CORP WAS AWARDED A 30 MILLION CONTRACT BY PLN INDONESIA'S NATIONAL UTILITY FOR AN 84MEGAWATT POWER PLANT ON THE ISLAND OF BALI 9404080139 940408 RJR NABISCO WILL REDEEM HIGHCOST DEBT BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RJR NABISCO HOLDINGS CORP SAID IT PLANNED TO REDEEM ABOUT 2 BILLION IN EXPENSIVE DEBT ON MAY 15 ANALYSTS HAD EXPECTED THE REDEMPTION AS A FIRST STEP IN SEPARATING RJR'S FOOD AND TOBACCO BUSINESSES THE 2 BILLION IN SUBORDINATED DEBENTURES CONTAINS RESTRICTIVE COVENANTS THAT PROHIBIT BREAKING UP THE COMPANY IN ADDITION TO REMOVING ONE OBSTACLE TO SEPARATING NABISCO FOODS GROUP FROM RJ REYNOLDS TOBACCO UNIT REDEEMING THE DEBENTURES ELIMINATES HIGHCOST DEBT FOR RJR THE DEBENTURES WHICH COME DUE IN 2001 CARRY AN AVERAGE INTEREST RATE OF NEARLY 15 MAY 15 WAS THE EARLIEST DATE THE DEBENTURES COULD BE REDEEMED RJR RECENTLY SAID THAT IT WAS REVIEWING A VARIETY OF STRATEGIC OPTIONS WHICH INCLUDED DIVESTITURES AND ACQUISITIONS A COMPANY SPOKESMAN SAID THE REDEMPTION MAKES SENSE BECAUSE OF INTEREST SAVINGS AND ACKNOWLEDGED THAT REDEEMING THE DEBENTURES GIVES RJR MORE FLEXIBILITY IF A DEAL COMES ALONG THAT MAKES SENSE IT IS NATURAL TO EXPECT THEM TO REFINANCE SINCE IT IS HIGHCOST DEBT AND IT LIMITED THEIR FLEXIBILITY FOR WHATEVER THEY MIGHT WANT TO DO SAYS ROY BURRY AN ANALYST AT KIDDER PEABODY & CO MR BURRY AND OTHERS BELIEVE THAT RJR WOULD EVENTUALLY LIKE TO SELL ITS TOBACCO BUSINESS TO A FOREIGN BUYER BUT PEOPLE CLOSE TO THE COMPANY SAY THE INVESTIGATION OF MERGERS OR SALES HAS LARGELY BEEN PUT ON HOLD BECAUSE RJR IS IN THE MIDST OF TRYING TO RAISE NEARLY 2 BILLION THROUGH AN OFFERING FOR 300 MILLION SHARES OF INTERESTBEARING CONVERTIBLE STOCK ANY SALE OR SPINOFF OF THE TOBACCO COMPANY OR FOOD GROUP BY RJR IS MORE LIKELY IN THREE TO SIX MONTHS AFTER THE STOCK OFFERING IS COMPLETED ACCORDING TO PEOPLE CLOSE TO THE COMPANY INVESTMENT BANKERS SAY THE VOLATILITY OF THE STOCK AND BOND MARKET EARLIER IN THE WEEK JEOPARDIZED RJR'S STOCK OFFERING BUT THE MARKET HAS STABILIZED OVER THE PAST FEW DAYS AND RJR'S STOCK PRICE HAS ALSO RISEN CLOSING YESTERDAY AT 625 UNCHANGED IN TRADING ON THE NEW YORK STOCK EXCHANGE STILL CRITICS OF THE CONVERTIBLE STOCK OFFERING SAY IT FACES A TOUGH SELL IF RJR IS DIVIDED HOLDERS WILL BE RECEIVING A TOBACCO STOCK AT A TIME WHEN THE TOBACCO INDUSTRY FACES THE THREAT OF HIGHER CIGARETTE TAXES AND THE PROSPECT OF HARSH GOVERNMENT REGULATION THE CONVERTIBLE STOCK DEAL IS AWAITING FINAL APPROVAL FROM THE SECURITIES AND EXCHANGE COMMISSION WITH SEC APPROVAL PENDING THE ROAD SHOW THE MEETINGS WITH POTENTIAL INVESTORS TO SELL THE STOCK HAS BEEN PUSHED BACK A WEEK TO APRIL 18 THE DEAL IS EXPECTED TO BE COMPLETED NEAR THE END OF THE MONTH IF STOCK MARKET CONDITIONS REMAIN STABLE THE CONVERTIBLE STOCK IS EXPECTED TO CARRY AN INTEREST RATE OF ABOUT 875 9404080138 940408 GREENSPAN SAYS TECHNOLOGY MAY NARROW INCOME GAP SAN FRANCISCO FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN THINKS NEW TECHNOLOGIES EVENTUALLY COULD HELP CLOSE THE WIDENING INCOME GAP AMONG AMERICANS AND THUS PERVASIVE PESSIMISM ABOUT THE US ECONOMY IS UNWARRANTED MR GREENSPAN SAID INNOVATIONS IN COMPUTER SOFTWARE AND OTHER HIGHTECH PRODUCTS WILL LEAD TO GOOD JOBS AND HIGHER STANDARDS OF LIVING EVEN FOR RELATIVELY UNSKILLED WORKERS GRAPHICS AND TOUCHSCREENS FOR EXAMPLE WILL ENABLE ILLITERATE PEOPLE TO PERFORM FUNCTIONS VIA COMPUTER THAT HAVE SIGNIFICANT ECONOMIC VALUE USERFRIENDLY IS A TERM THAT IS CRITICAL TO THE FUTURE OF THE US HE SAID IN AN ADDRESS TO SAN FRANCISCOAREA BUSINESS LEADERS HE MADE NO REFERENCE TO INTEREST RATES OR THE NEARTERM OUTLOOK FOR THE ECONOMY IN THE WAKE OF A MONTHLONG PLUNGE IN BOND PRICES TRIGGERED BY THE FED'S DECISION TO RAISE SHORTTERM RATES DESPITE SOLID UNDERLYING ECONOMIC STRENGTH AND A RECENT RESURGENCE OF AMERICAN COMPANIES IN KEY GLOBAL INDUSTRIES MR GREENSPAN SAID INEXPLICABLY THERE REMAINS AN EXTRAORDINARILY DEEPROOTED FOREBODING AMONG CONSUMERS ABOUT THEIR FUTURE THERE IS NO DOUBT THE ECONOMY WILL EMERGE HEALTHIER AND OPERATE FAR MORE EFFICIENTLY THAN WE PERCEIVE IT AS WE ADAPT TO IRREVERSIBLE CHANGES SUCH AS THE SHIFT FROM MANUFACTURED GOODS TO KNOWLEDGEBASED SERVICES HE ADDED 9404080137 940408 KELLOGG WON'T CUT PRICES GENERAL MILLS SPEEDS PLANS A WALL STREET JOURNAL NEWS ROUNDUP KELLOGG CO SAID IT HAS NO PLANS TO ROLL BACK PRICES ON ITS BREAKFAST CEREALS EVEN AS RIVAL GENERAL MILLS INC SAID IT WOULD ACCELERATE ITS PLANS TO DO SO IN THE FACE OF GENERAL MILLS' FORTHCOMING 11 PRICE CUT ON EIGHT OF ITS BIGGEST BRANDS KELLOGG THE WORLD'S LARGEST MAKER OF READYTOEAT CEREAL SAID IT REMAINS THE VALUE LEADER WITH ITS PRODUCTS PRICED BELOW THE AVERAGE OF BRANDED COMPETITORS KELLOGG RAISED PRICES ON MOST OF ITS CEREALS AN AVERAGE OF 26 IN FEBRUARY ITS SECOND INCREASE IN SIX MONTHS GENERAL MILLS CONTENDING THAT THE INDUSTRY PRACTICE OF RAISING PRICES AND OFFSETTING THEM WITH PROMOTIONAL SPENDING MAKES NO SENSE HASN'T BOOSTED ITS PRICES SINCE JANUARY 1993 EARLIER THIS WEEK GENERAL MILLS SAID IT WOULD CUT PRICES AND SHRINK THE NUMBER AND VALUE OF COUPONS THAT ALLOW CONSUMERS TO BUY CEREAL AT A DISCOUNT YESTERDAY IT MOVED UP TO NEXT MONDAY FROM MAY 2 THE EFFECTIVE DATE OF THE ROLLBACK THOUGH IT CAUTIONED THAT GROCERS MAY TAKE TWO TO THREE WEEKS TO IMPLEMENT THE LOWER PRICES GENERAL MILLS ALSO SAID IT IS CANCELING A NATIONWIDE INSTORE COUPONING CAMPAIGN SCHEDULED FOR THIS MONTH AS PART OF ITS PLAN TO PARE 175 MILLION FROM CEREAL'S MARKETING EXPENDITURES ASKED ABOUT ITS INTENTIONS A KELLOGG SPOKESMAN REITERATED THE COMPANY'S DECLARATION THAT IT PLANS TO REDUCE PROMOTIONAL SPENDING THIS YEAR 9404080136 940408 BATTLE MOUNTAIN UNIT'S CURBS ARE DISSOLVED LENDERS AGREE GOLD MINE IS COMPLETED ALLOWING LATITUDE TO INTI RAYMI BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON BATTLE MOUNTAIN GOLD CO SAID LENDERS TO ITS 88OWNED INTI RAYMI UNIT HAVE AGREED THAT ITS BOLIVIAN GOLD MINE HAS BEEN COMPLETED ALLOWING INTI RAYMI TO REPAY LOANS TO BATTLE MOUNTAIN AND TO BEGIN PAYING DIVIDENDS TO INTI'S SHAREHOLDERS UNDER THE FINANCING AGREEMENTS BATTLE MOUNTAIN HAD TO SECURE THE PROJECT LOANS WITH 49 OF ITS INTI RAYMI SHARES UNTIL THE KORI KOLLO PROJECT REACHED COMPLETION STATUS THOSE SHARES ARE NOW RELEASED IN ADDITION BATTLE MOUNTAIN IS NO LONGER OBLIGATED TO PROVIDE FINANCIAL SUPPORT TO ENSURE THAT INTI RAYMI CAN MEET ITS OBLIGATIONS THE THREE MULTILATERAL AGENCIES THAT PROVIDED THE 95 MILLION PROJECT FINANCING WERE OVERSEAS PRIVATE INVESTMENT CORP INTERNATIONAL FINANCE CORP AND THE CORP ANDINA DE FOMENTO IN AN INTERVIEW ON OTHER MATTERS BATTLE MOUNTAIN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER KARL ELERS SAID THAT HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES OF A BREAKEVEN FIRST QUARTER AFTER PAYING PREFERRED DIVIDENDS HE ALSO SAID ANALYSTS' EXPECTATIONS THAT THE GOLD MINING COMPANY WILL EARN ABOUT 10 CENTS A SHARE FOR THE YEAR ARE REASONABLE AS LONG AS GOLD PRICES STAY ABOUT WHERE THEY ARE NOW MR ELERS IS PROJECTING THAT BATTLE MOUNTAIN WILL PRODUCE ABOUT 500000 OUNCES OF GOLD THIS YEAR THAT WILL INCREASE TO THE HIGH 500S IN 1995 AND 1996 CASH COSTS THROUGH THE PERIOD SHOULD REMAIN AT ABOUT 200 AN OUNCE HE ESTIMATED ASSUMING TIMELY PERMITTING OF THE COMPANY'S PLANNED CROWN JEWEL MINE IN WASHINGTON STATE AND PHOENIX MINE IN NEVADA PRODUCTION SHOULD RISE TO 700000 OUNCES IN 1997 AND 1998 THE COMPANY SEES RECENT LEGISLATION THAT PASSED IN WASHINGTON STATE AS A POSITIVE STEP IN MOVING ITS 51OWNED CROWN JEWEL PROJECT CLOSER TO CONSTRUCTION AND PRODUCTION THE COMPANY AND ITS PARTNER CROWN RESOURCES CORP STARTED EFFORTS IN 1990 TO GET STATE AND FEDERAL PERMITS TO BUILD THE MILL AND MINE SEVERAL DELAYS CAUSED BY ENVIRONMENTAL ACTIVISTS AND SLOW GOVERNMENT RESPONSES HAVE PUSHED CONSTRUCTION OF THE MINE BACK ABOUT TWO YEARS AND THE COMPANIES NOW ANTICIPATE CONSTRUCTION COULD BEGIN NEXT SUMMER WASHINGTON'S NEW MINING LAW SIGNED LAST WEEK BY GOV MIKE LOWRY TOUGHENED SOME OF THE STATE'S MINING REGULATIONS BUT ENSURED MANY ENVIRONMENTALISTS THAT THERE IS SIGNIFICANT STATE OVERSIGHT OF MINING PROJECTS MR ELERS SAID THERE WILL ALWAYS BE SOME PEOPLE WHO SIMPLY DO NOT WANT MINING HE SAID BUT WE FEEL THE REAL ISSUES HAVE BEEN ADDRESSED WITH RISING PRODUCTION THE COMPANY IS PRESSURED TO REPLACE ITS RESERVES WITH EVERLARGER AND MORE FREQUENT DISCOVERIES MR ELERS SAID TO DO THAT BATTLE MOUNTAIN IS SPENDING 14 MILLION THIS YEAR ON ITS EXPLORATION BUDGET INCLUDING DRILLING ON KNOWN DEPOSITS COMPARED WITH 105 MILLION LAST YEAR AMONG THE CURRENT PROSPECTS FOR NEW MINES IS THE PHOENIX DEPOSIT AT THE COMPANY'S BATTLE MOUNTAIN COMPLEX IN NEVADA A FEASIBILITY STUDY WILL BE COMPLETED THIS SUMMER TO DETERMINE THE ECONOMIC VIABILITY OF THE DEPOSIT WHICH COULD ADD 900000 OUNCES TO THE COMPANY'S CURRENT 74 MILLIONOUNCE RESERVE AND ANNUAL PRODUCTION OF ABOUT 120000 OUNCES IN ADDITION EXPLORATORY DRILLING CONTINUES AROUND THE COMPANY'S AUSTRALIAN RED DOME AND BOLIVIAN KORI KOLLO MINES AND THE COMPANY SAYS IT IS CONFIDENT ADDITIONAL RESERVES WILL BE IDENTIFIED THERE BATTLE MOUNTAIN IS ALSO DRILLING ON ITS OWN AND IN JOINT VENTURES IN HONDURAS AUSTRALIA MEXICO NEVADA AND MONTANA MAPPING AND SURFACE SAMPLING HAS BEGUN IN PERU AND ARGENTINA CURRENT CAPITAL PROJECTS INCLUDE A 30 MILLION EFFORT TO INCREASE KORI KOLLO PRODUCTION 40 BY EXPANDING MILL CAPACITY AND IMPROVING RECOVERY OF GOLD FROM THE ORE 9404080135 940408 CHRYSLER'S QUALITY REPUTATION RECEIVES FRESH JOLT OVER THIRD NEON PROBLEM BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT CHRYSLER CORP'S REPUTATION FOR QUALITY ALREADY CONSIDERED SHAKY WAS FURTHER DAMAGED WITH THE DISCLOSURE OF A THIRD PROBLEM IN ITS NEW NEON SMALL CAR THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION SAID THE NEON WHICH WENT ON SALE THIS YEAR WAS RECALLED A THIRD TIME TO FIX A BRAKE BRACKET CHRYSLER SOUGHT TO PLAY DOWN THE PROBLEM CALLING IT A ROUTINE MAINTENANCE PROCEDURE THE BRAKE FIX WAS MADE IN FEBRUARY AT THE SAME TIME A PREVIOUSLY ANNOUNCED RECALL WAS CONDUCTED TO REPLACE THE CAR'S COMPUTER IN JANUARY CHRYSLER RECALLED THE CARS TO REPAIR A PROBLEM WITH ANTILOCK BRAKES THE THREE NEON DEFECTS CAME DESPITE CHRYSLER'S ONGOING CAMPAIGN TO IMPROVE THE QUALITY OF ITS VEHICLES THE AUTO MAKER HAS SAID IT WOULD LIKE THE NEON TO BE AMONG THE TOP 10 VEHICLES IN QUALITY ALONGSIDE SUCH MODELS AS TOYOTA MOTOR CORP'S LEXUS LS400 AN AMBITIOUS GOAL FOR A COMPANY STILL PLAGUED BY BELOWAVERAGE SCORES IN MOST QUALITY SURVEYS A CHRYSLER SPOKESMAN SAID THE AUTO MAKER HAS MADE GREAT PROGRESS IN ITS EFFORTS TO BUILD MORE RELIABLE VEHICLES AND INTENDS TO CONTINUE TO MAKE PROGRESS BUT CONSUMER REPORTS IN ITS APRIL ISSUE BLASTED THE RELIABILITY OF SOME OF THE AUTO MAKER'S BESTSELLING LIGHT TRUCKS INCLUDING ITS MINIVANS ITS DAKOTA PICKUP AND ALL OF ITS JEEP MODELS 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 9404080134 940408 INTERNATIONAL SALES OF IMPORTED CARS ENJOY BOOM IN JAPAN LED BY US MODELS SPECIAL TO THE WALL STREET JOURNAL TOKYO SALES OF IMPORTED CARS ARE BOOMING IN JAPAN WHILE JAPANESE AUTO MAKERS ARE SUFFERING FROM SHARP DROPS IN THEIR DOMESTIC BUSINESS THE JAPAN AUTOMOBILE IMPORTERS' ASSOCIATION SAID SALES OF IMPORTED CARS TRUCKS AND BUSES IN JAPAN SOARED TO 217633 UNITS IN THE FISCAL YEAR ENDED MARCH 31 A 14 INCREASE FROM A YEAR EARLIER SETTING A RECORD FOR ANNUAL SALES OF IMPORTED VEHICLES SALES OF USMADE CARS ROSE 33 FROM A YEAR EARLIER TO 58968 UNITS IN ADDITION THE ASSOCIATION SAID MARCH SALES ROSE TO 32440 A RECORD FOR MONTHLY SALES AND A 41 JUMP FROM A YEAR EARLIER INDUSTRY OFFICIALS AND ANALYSTS SAY THE SHARP INCREASE IN AUTO IMPORTS OVER THE PAST YEAR IS DUE LARGELY TO LOWER PRICES MADE POSSIBLE BY A STRONG APPRECIATION OF THE YEN BUT THEY SAY THE UPTREND IN SALES IS LIKELY TO CONTINUE OVER THE COMING YEARS AS JAPANESE AUTO DEALERS OPEN UP TO FOREIGN CARS MEANWHILE THE ASSOCIATION SAID SALES OF CARS MADE WITHIN JAPAN BY THE COUNTRY'S 11 AUTO MAKERS DROPPED 96 IN THE PAST FISCAL YEAR TO 46 MILLION UNITS IN THE SAME YEAR IMPORTS OF EUROPEAN CARS WHICH JAPANESE CONSUMERS GENERALLY HAD PREFERRED OVER US CARS REMAINED LITTLE CHANGED SEPARATELY TWO NISSAN MOTOR CO DEALERSHIPS WERE SCHEDULED TO ANNOUNCE TODAY THE ESTABLISHMENT OF SUBSIDIARIES IN TOKYO AND OSAKA TO SELL IMPORTED FORD MOTOR CO AUTOMOBILES THE EXACT NUMBER OF THE SUBSIDIARIES' OUTLETS HOWEVER HASN'T BEEN DECIDED THE DEALERSHIPS SAID 9404080133 940408 MARKETING & MEDIA EW SCRIPPS BOARD BACKS BID CINCINNATI EW SCRIPPS CO SAID ITS PROPOSAL TO BUY THE 14 INTEREST IN ITS SCRIPPS HOWARD BROADCASTING CO UNIT THAT IT DOESN'T ALREADY OWN WAS APPROVED BY SCRIPPS HOWARD'S BOARD BUT EW SCRIPPS WILL HAVE TO PAY MORE THAN IT ORIGINALLY OFFERED IT BOOSTED ITS OFFER TO 345 OF ITS CLASS A COMMON SHARES FOR EACH SCRIPPS HOWARD SHARE FROM THREE SHARES EW SCRIPPS SAID THE NEW OFFER HAS A VALUE OF ABOUT 119 MILLION EW SCRIPPS OPERATES NEWSPAPERS A TELEVISION PROGRAMMING COMPANY AND OTHER MEDIA INTERESTS SCRIPPS HOWARD OPERATES NINE TELEVISION STATIONS AND CABLE TELEVISION SYSTEMS 9404080132 940408 INTERNATIONAL JAPAN INTENDS TO PRESS US TO REOPEN TRADE TALKS TOKYO JAPAN INTENDS TO PRESS THE US TO REOPEN TRADE TALKS NEXT WEEK WHEN SENIOR OFFICIALS FROM THE TWO COUNTRIES ARE EXPECTED TO MEET IN MOROCCO A TOP BUREAUCRAT SAID WE WOULD LIKE TO SEIZE ANY CHANCES IN MEETING WITH THE US AND WANT TO REOPEN THE FRAMEWORK TALKS HIDEAKI KUMANO ADMINISTRATIVE VICE MINISTER OF JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY TOLD REPORTERS WE CAN EASILY IMAGINE THERE WILL BE SUCH A CHANCE AT THE MOROCCO MEETING LEADERS FROM THE US AND JAPAN WILL BE IN MARRAKESH ON APRIL 15 TO OFFICIALLY CONCLUDE THE URUGUAY ROUND OF WORLDTRADE TALKS AT THAT TIME JAPANESE FOREIGN MINISTER TSUTOMU HATA IS EXPECTED TO HOLD DISCUSSIONS WITH US TRADE REPRESENTATIVE MICKEY KANTOR MR KUMANO ADDED THAT JAPAN WON'T BE MAKING ANY ADDITIONAL OFFERS IN MARRAKESH BUT HIS COMMENTS ARE THE CLEAREST INDICATION OF JAPAN'S EAGERNESS TO RESTART NEGOTIATIONS TRADE TALKS IN WHICH THE TWO NATIONS SOUGHT TO REACH AGREEMENT ON SPECIFIC ISSUES UNDER AN OVERALL FRAMEWORK COLLAPSED IN MIDFEBRUARY LAST WEEK JAPAN UNVEILED A PACKAGE OF VOLUNTARY MARKETOPENING MEASURES TO PERSUADE THE US TO RETURN TO TALKS US OFFICIALS PLAYED DOWN EXPECTATIONS THAT THE MARRAKESH TALKS COULD LEAD TO A BREAKTHROUGH NONE OF THE ADMINISTRATION'S SENIOR JAPAN NEGOTIATORS WILL ACCOMPANY MR KANTOR MOREOVER TRADE OFFICIALS SAY THEY ARE WAITING FOR JAPAN TO MAKE A MORE DETAILED OFFER OF MARKET OPENINGS ONE NEGOTIATOR SAID JAPAN'S MOST RECENT OFFER REPRESENTS MERELY AN OUTLINE OF TOPICS TO BE ADDRESSED 9404080131 940408 INTERNATIONAL DAIMLERBENZ REDUCES PAYOUT FOR FIRST TIME IN A QUARTER CENTURY SPECIAL TO THE WALL STREET JOURNAL FRANKFURT DAIMLERBENZ AG CUT ITS DIVIDEND FOR THE FIRST TIME IN A QUARTER CENTURY AND THE THIRD TIME IN ITS POSTWAR HISTORY THE LARGE GERMAN LUXURYAUTOMOBILE AEROSPACE AND TECHNOLOGY COMPANY TRIMMED ITS 1993 PERSHARE PAYOUT TO EIGHT MARKS 467 FROM 13 MARKS IN 1992 THE DIVIDEND CUT IS SIGNIFICANTLY DEEPER THAN MANY PROMINENT INDUSTRY ANALYSTS HAD EXPECTED MOST HAD FORECAST A SYMBOLIC CUT TO ABOUT 10 MARKS WHICH WOULD HAVE TRIMMED THE RETURN BUT PRESERVED AN ATTRACTIVE DOUBLEDIGIT MAGNITUDE SEVERAL PROMINENT GERMAN ANALYSTS HAD EVEN CALLED FOR AN UNCHANGED 13MARK PAYOUT FOR THE GROUP WHICH INCLUDES THE MERCEDESBENZ LUXURYCAR COMPANY INSTEAD THE DIVIDEND FOR 1993 FELL TO ITS LOWEST LEVEL SINCE 1974 WHEN THE COMPANY PAID SEVEN MARKS A SHARE JUSTIFYING THE MOVE THE COMPANY CITED ITS HIGH SEVERANCE COSTS TO COVER LAYOFFS IN 1993 DAIMLER ANNOUNCED A PAINFUL SERIES OF JOB ELIMINATIONS THAT TOTALED 50000 BY THE END OF THE YEAR DAIMLER ALSO CITED THE WORLDWIDE RECESSION AND LAST YEAR'S DIFFICULT BUSINESS CLIMATE THE COMPANY'S FULLYEAR 1993 REPORT WITH SALES AND EARNINGS WILL BE RELEASED NEXT TUESDAY 9404080130 940408 TECHNOLOGY & HEALTH HIV MAY CAUSE CANCER DIRECTLY RESEARCH FINDS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO AFTER YEARS OF PROBING INDIRECT LINKS BETWEEN AIDS AND CANCER SCIENTISTS SAID THEY FOUND CLUES THAT HIV DIRECTLY CAUSES CANCER BY INFILTRATING THE GENES OF ITS HOST THE RESEARCH MAY CHILL EFFORTS TO USE DISABLED FORMS OF HIV AS AN AIDS VACCINE AMID FEARS THAT ANY LIVE VIRUS EVEN IF INCAPABLE OF CAUSING AIDS MIGHT STILL RETAIN THE POWER TO INSERT ITSELF INTO HUMAN GENES AND TRIGGER TUMORS AIDS HAS LONG BEEN KNOWN TO CONTRIBUTE TO SEVERAL FORMS OF CANCER INCLUDING THE CAPILLARY CANCER KAPOSI'S SARCOMA AND THE LYMPHSYSTEM TUMOR BCELL LYMPHOMA EITHER BY WEAKENING THE IMMUNE SYSTEM OR BY ACTING AS AN ACCOMPLICE OR COFACTOR IN CANCER HOWEVER STUDY AUTHORS MICHAEL MCGRATH AND BRUCE SHIRAMIZU OF THE UNIVERSITY OF CALIFORNIA HERE SAID THEY FOUND A RARER FORM OF LYMPHOMA CALLED NONBCELL LYMPHOMA IN WHICH HIV INSERTED ITSELF DIRECTLY INTO THE DNA OF HUMAN CELLS HIV THEY FOUND INSINUATED ITSELF RIGHT NEXT TO AN ONCOGENE OR CANCERCAUSING GENE KNOWN AS C/FES AND THROUGH A PROCESS OF MUTATION ACTIVATED THE ONCOGENE TO CAUSE CANCER MANY HUMAN VIRUSES PROMOTE CANCER IN DIFFERENT WAYS FROM HTLV1 WHICH DIRECTLY INFECTS WHITE BLOOD CELLS TO CAUSE A FORM OF LEUKEMIA TO HEPATITIS B WHICH INDIRECTLY CAUSES CANCER BY INFECTING AND DAMAGING LIVER TISSUES HOWEVER DR MCGRATH SAID THIS WOULD BE THE FIRST TIME THAT ANY HUMAN RETROVIRUS HAS BEEN IMPLICATED IN CAUSING A CANCER LIKE THIS THE ONLY PRECEDENT FOR HIV'S SUSPECTED ACTION IN THESE LYMPHOMAS IS AN ANIMAL VIRUS THAT CAUSES LYMPHOMA IN CHICKENS THE WORK IS TO APPEAR IN THE JOURNAL CANCER RESEARCH NEXT WEEK IF CONFIRMED IT'S AN IMPORTANT FINDING SAID WILLIAM BLATTNER THE NATIONAL CANCER INSTITUTE'S CHIEF OF VIRAL EPIDEMIOLOGY WHO RECENTLY OPENED A COMPUTER REGISTRY TRACKING LINKS BETWEEN AIDS AND AN ARRAY OF CANCERS IT'S A HEADSUP THAT THEY'RE ON TO SOMETHING THAT NEEDS LOOKING INTO 9404080129 940408 THURSDAY'S MARKETS STOCKS CLIMB ON ADVANCE IN BOND PRICES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES CLIMBED THANKS TO A MORE SANGUINE BOND MARKET THE DOLLAR WAS MOSTLY HIGHER ADVANCING FOR THE THIRDSTRAIGHT DAY THE DOW JONES INDUSTRIAL AVERAGE ROSE 1353 POINTS TO 369326 STANDARD & POOR'S 500STOCK INDEX ADDED 283 TO 45088 AND THE NASDAQ COMPOSITE INDEX JUMPED 445 TO 75517 ANALYSTS SAID STABILITY IN THE BOND MARKET HELPED PAVE THE WAY FOR GAINS IN STOCKS BOND PRICES HAD BEEN UNDER PRESSURE EARLIER THIS WEEK AS PROFESSIONAL TRADERS STARTED DUMPING GOVERNMENT SECURITIES IN AN EFFORT TO PROTECT THEMSELVES AGAINST PRICE DECLINES IN OTHER MORE ILLIQUID FIXEDINCOME INSTRUMENTS NOW THAT SOME LIQUIDITY HAS BEEN RESTORED TO THE MUNICIPAL AND MORTGAGEBACKED SECURITIES MARKET SOME OF THE PRESSURE ON TREASURYS HAS SUBSIDED SAID NEIL SOSS CHIEF ECONOMIST AT CS FIRST BOSTON BUT STEPHEN SLIFER CHIEF FINANCIAL MARKET ECONOMIST AT LEHMAN BROTHERS SAID HE WOULDN'T READ TOO MUCH INTO THE AFTERNOON RALLY IN BONDS MY FEAR IS THAT WE DID A LITTLE BETTER ONLY BECAUSE PEOPLE FEEL THE FEDERAL RESERVE ISN'T GOING TO TIGHTEN SOON AND I'M NOT SURE THAT'S TRUE SAID MR SLIFER HE SAID THAT IF YESTERDAY'S CHAINSTORE SALES DATA ARE ANY INDICATION THE ECONOMY MAY BE STRONGER THAN MANY INVESTORS ARE WAGERING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 059 TO 11276 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2877 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1370 ISSUES ADVANCED AND 761 DECLINED BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED 3/8 POINT OR 375 FOR EACH 1000 FACE AMOUNT TO YIELD 720 THE DOLLAR WAS MOSTLY HIGHER IN LATE NEW YORK TRADING THE CURRENCY WAS AT 17165 MARKS AND 10490 YEN COMPARED WITH 17165 MARKS AND 10455 YEN WEDNESDAY 9404080128 940408 INTERNATIONAL GERMANY'S ARMS MAKERS EXPRESS FEAR OVER SURVIVAL AMID POSTCOLDWAR CUTS BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL KIEL GERMANY BECAUSE OF GERMANY'S HISTORY ARMS MANUFACTURERS ARE PROBABLY THE NATION'S LEAST POPULAR AND LOWESTPROFILE INDUSTRIALISTS BUT AS BONN'S POSTCOLD WAR MILITARY CUTBACKS CONTINUE THEY ARE BECOMING ANGRY AND VOLUBLE WE UNDERSTOOD THAT WE HAD TO CONFORM TO NEW CIRCUMSTANCES SAYS GERT WINKLER CHAIRMAN OF MAK SYSTEM GMBH A TANK MANUFACTURING SUBSIDIARY OF DEFENSE GIANT RHEINMETALL GMBH IN THIS WINDSWEPT BALTIC PORT THE QUESTION WAS WHETHER THIS WAS GOING TO BE GUIDED CHANGE OR FLYING BLIND WE'RE FLYING BLIND MR WINKLER IS ONE OF A CHORUS OF CONTRACTORS WHO HAVE VOICED DISMAY THAT EXPORT RULES AND WHAT THEY DESCRIBE AS CHAOTIC PLANNING FOR GERMANY'S POSTCOLD WAR MILITARY ARE DIMMING THEIR CHANCES FOR SURVIVAL HIS COMPANY A PRIMARY PRODUCER OF THE LEOPARD 2 TANK HAS HAD SINKING REVENUES FOR THREE YEARS RUNNING AND ITS WORK FORCE HAS SHRUNK BY 50 SINCE 1990 WE'VE BEEN PULLED DOWN SO FAR HE COMPLAINS THE ISSUE IS NOW WHETHER WE CAN HOLD ON TO KNOWHOW ACCUSTOMED TO 15YEAR PLANS THAT HAVE SET OUT PROCUREMENT GUIDELINES WITH PRUSSIAN PRECISION DEFENSE EXECUTIVES HAVE WATCHED AS BUDGETS HAVE BEEN REVISED SHRUNK OR DISCARDED WITHIN MONTHS THE BOTTOM LINE HAS BEEN MORE PAINFUL THAN IN MOST NORTH ATLANTIC TREATY ORGANIZATION COUNTRIES INCLUDING THE US SINCE 1990 GERMAN SPENDING ON HARDWARE AND RESEARCH HAS BEEN ROUGHLY HALVED FOR 1994 IT IS LESS THAN 35 BILLION EXACTLY HOW THE DRAWDOWN HAS AFFECTED BALANCE SHEETS IS UNKNOWN BECAUSE FEW GERMAN FIRMS ARE EXCLUSIVELY IN THE ARMAMENTS INDUSTRY AND MOST REFUSE TO BREAK OUT RESULTS FOR SPECIAL TECHNICS A EUPHEMISM SOME USE FOR MILITARY WORK BUT SOME INDICATION IS CLEAR FROM TAKEOVER ACTIVITY AS IN THE US THERE HAS BEEN A WAVE OF CONSOLIDATIONS WITH ANALYSTS EXPECTING MORE MERGERS THERE IS A CONCENTRATION GOING ON IN WHICH ONLY A FEW FIRMS WILL SURVIVE SAYS HARALD SCHMIDT OF COMMERZBANK STRAPPED BY THE COSTS OF REBUILDING EASTERN GERMANY THE FEDERAL GOVERNMENT NEVER DEVELOPED A PROGRAM FOR CONVERTING FIRMS TO CIVILIAN PRODUCTION HOW MUCH OF THE INDUSTRY WILL ULTIMATELY REMAIN THEREFORE MAY DEPEND ON WHETHER CONTRACTORS CAN PERSUADE BONN TO CHANGE THE COUNTRY'S EXPORT REGULATIONS UNDER THE CURRENT RULES GERMAN FIRMS HAVE NO PROBLEM WITH EXPORTS TO OTHER NATO COUNTRIES OR TO WESTERN EUROPEAN DEMOCRACIES A SALE OF LEOPARD 2S TO SWEDEN WILL HELP KEEP MAK PRODUCTION LINES RUNNING FOR THE NEAR FUTURE BUT EXPORTS TO AREAS OF TENSION ARE PROHIBITED AND GOVERNMENT REVIEW PROCEDURES HAVE MEANT THAT RELATIVELY LITTLE IS EXPORTED TO THE DEVELOPING WORLD OR THE BOOMING ARMAMENTS MARKET IN THE FAR EAST GERMAN SHIPBUILDERS FOR EXAMPLE ARE BITTER THAT A MULTIBILLIONDOLLAR SUBMARINE ORDER BY TAIWAN WAS SCOTCHED BY THE GOVERNMENT LAST YEAR IN ADDITION CONTRACTORS ARGUE THEY ARE INCREASINGLY BEING SHUT OUT OF COOPERATIVE DEVELOPMENT VENTURES WITH PRODUCERS IN OTHER NATO COUNTRIES BECAUSE OF THE GERMAN GOVERNMENT'S VETO POWER OVER EVENTUAL EXPORTS ALTHOUGH BONN INSISTS THAT IT WANTS GERMAN FIRMS TO PRESERVE THE KNOWHOW AND RESOURCES TO BE CAPABLE OF BEING LEAD CONTRACTORS IN A VARIETY OF FIELDS THAT HAS ALREADY BEEN LOST EXCEPT PERHAPS WITH SOME AIRCRAFT AT DEUTSCHE AEROSPACE AG SAYS KLAUS BECHER A DEFENSE EXPERT AT BONN'S RESEARCH INSTITUTE OF THE GERMAN SOCIETY FOR FOREIGN POLICY FEARS OF EXCLUSION FROM COOPERATIVE PROJECTS HAVE PROMPTED INDUSTRIALISTS TO LOBBY FOR HARMONIZING RULES WITH OTHER EUROPEAN UNION COUNTRIES TO MAKE THE POINT THAT GERMAN INDUSTRY WANTS TO OPERATE ON THE SAME TERMS AS OTHERS EDZARD REUTER CHAIRMAN OF DAIMLERBENZ AG GERMANY'S LARGEST COMPANY WARNED THAT THE CONSEQUENCE IF NOTHING HAPPENS HERE IS THAT WE WILL NOT BE ABLE TO DO DEFENSE TECHNOLOGY LONGTERM IN THIS COUNTRY AND THEN WE WILL GO ABROAD DAIMLER'S DEUTSCHE AEROSPACE SUBSIDIARY HAS BEEN ONE OF THE CONTRACTORS HARDEST HIT BY THE DOWNTURN AND IS CLOSING SIX PLANTS AND LAYING OFF 16000 WORKERS ALTHOUGH COMPANIES HAVE NOT BEEN SHY ABOUT EMPHASIZING THE ISSUE OF JOB LOSSES GAINING PUBLIC SUPPORT IS NOT PROVING EASY RECOLLECTIONS ARE STILL FRESH OF THE CHEMICAL WEAPONS PLANT IN RABTA LIBYA THAT WAS ILLEGALLY BUILT BY A GERMAN FIRM AND A NUMBER OF PREGULF WAR CASES INVOLVING EXPORTS TO IRAQ HAVE BEEN WORKING THEIR WAY THROUGH THE COURTS LEADING CONSERVATIVES IN CHANCELLOR HELMUT KOHL'S CABINET AND THE PARLIAMENT HAVE RAISED THE ISSUE OF CHANGING RULES REPEATEDLY IN RECENT MONTHS ONLY TO BE CRITICIZED BY OTHERS IN THE PARTY OR ATTACKED IN THE PRESS IN FACT THE IDEA OF LIBERALIZED ARMS EXPORTS REMAINS UNPOPULAR ENOUGH THAT INDUSTRY LOBBYISTS STILL HAVE LITTLE SWAY OVER PARLIAMENT MEMBERS WHOSE DISTRICTS MAY BE AFFECTED BY FURTHER INDUSTRY SHRINKAGE KIEL FOR EXAMPLE IS THE HOME TO SEVERAL SIZABLE CONTRACTORS AND IS REPRESENTED BY SOCIAL DEMOCRAT NORBERT GANSEL A LEADING OPPONENT OF LOOSENING THE REGULATIONS HIS CONSTITUENTS HE SAYS KNOW VERY WELL WHAT HE STANDS FOR I'M IN POLITICS BECAUSE I THINK YOU CAN LEARN FROM HISTORY ARMS EXPORTS HAVE NOTHING TO DO WITH OUR OWN SECURITY 9404080127 940408 INTERNATIONAL BRITISH AIRWAYS PASSENGER TRAFFIC LONDON BRITISH AIRWAYS PLC SAID THAT ITS PASSENGER TRAFFIC WAS UP 12 IN MARCH FROM A YEAR EARLIER THE UNITED KINGDOM CARRIER SAID IN A NEWS RELEASE THAT THE INCREASE TO 690 BILLION REVENUE KILOMETERS FROM 618 BILLION WAS ACCOMPANIED BY A 97 GROWTH IN AVAILABLE SEAT KILOMETERS TO 976 BILLION FROM 889 BILLION WHICH INCREASED ITS PASSENGERLOAD FACTOR TO 71 FROM 70 THE MARCH AND FEBRUARY DATA TOGETHER REPRESENT THE BEST IMPROVEMENT IN THE 1993/1994 FINANCIAL YEAR BRITISH AIRWAYS SAID THE COMPANY ADDED THAT THE MARCH RESULTS WERE DEPRESSED BY THE IMPACT OF MORTAR ATTACKS ON LONDON'S HEATHROW AIRPORT 9404080126 940408 CBI INDUSTRIES IS TOLD TO PAY MARATHON OIL 315 MILLION FOR LEAK OAK BROOK ILL CBI INDUSTRIES INC SAID A TEXAS STATE COURT ORDERED IT TO PAY MARATHON OIL CO 315 MILLION FOR ITS PART IN A 1987 CHEMICAL LEAK THAT OCCURRED DURING WORK ON A MARATHON REFINERY CBI CALLED THE JUDGMENT COMPLETELY UNEXPECTED AS WELL AS NOT WARRANTED AND SAID IT PLANS TO SEEK TO HAVE THE ORDER REDUCED THROUGH POSTTRIAL MOTIONS IT SAID IT'S WEIGHING AN APPEAL IF THOSE EFFORTS AREN'T SUCCESSFUL IT ALSO NOTED THAT IT IS IN LITIGATION WITH ITS INSURERS WHO HAVE TO DATE DENIED ANY COVERAGE FOR THE INCIDENT BASED ON CERTAIN POLLUTION EXCLUSIONS IN CBI'S POLICIES BECAUSE OF THOSE UNCERTAINTIES THE COMPANY SAID IT'S NOT CLEAR WHETHER CBI WILL HAVE TO TAKE ADDITIONAL RESERVES BECAUSE OF THE JUDGMENT IT HASN'T DISCLOSED THE SIZE OF THE RESERVES IT'S TAKEN TO DATE CBI WAS HELPING CARRY OUT RENOVATIONS AT A MARATHON PLANT WHEN A SUBCONTRACTOR'S CRANE BUCKLED AND CAUSED THE RELEASE OF HARMFUL FUMES FROM AN ACID TANK THE MISHAP CAUSED THE EVACUATION OF THOUSANDS OF TEXAS CITY RESIDENTS MARATHON A UNIT OF USX CORP HAD SUED CBI FOR DAMAGES TO THE REFINERY AND TO RECOVER DAMAGES AND OTHER EXPENSES PAID EARLIER TO CIVIL PLAINTIFFS 9404080125 940408 EMORY UNIVERSITY SAYS IT WILL RENAME SCHOOL AFTER COCACOLA CHIEF ATLANTA EMORY UNIVERSITY SAID IT IS RENAMING ITS BUSINESS SCHOOL AFTER ROBERTO C GOIZUETA CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF COCACOLA CO THE NAME CHANGE FOLLOWS A 10 MILLION PLEDGE TO THE PRIVATE UNIVERSITY BY A FOUNDATION FOUNDED BY ROBERT W WOODRUFF A FORMER CHAIRMAN OF COCACOLA THE DONATION WHICH WAS PROPOSED BY EMORY UNIVERSITY TO HONOR MR GOIZUETA'S BUSINESS ACHIEVEMENTS AND COMMITMENT TO THE SCHOOL WILL BE APPLIED TO THE COST OF A FIVESTORY CLASSROOM BUILDING EMORY UNIVERSITY HAS BENEFITED FOR DECADES FROM THE PHILANTHROPY OF COCACOLA AND ITS SENIOR EXECUTIVES ASA CANDLER A COMPANY FOUNDER PAID FOR THE SCHOOL TO BE MOVED TO ATLANTA FROM NEARBY OXFORD GA IN 1919 EMORY'S ENDOWMENT FUND CONSISTING LARGELY OF COCACOLA STOCK AMOUNTED TO 17 BILLION AS OF LAST SUMMER UP FROM 253 MILLION IN 1981 THE YEAR MR GOIZUETA BECAME CHAIRMAN OF COCACOLA MR GOIZUETA HAS SERVED AS AN EMORY UNIVERSITY TRUSTEE SINCE 1980 9404080124 940408 GOLDEN WEST IS SAID TO SEEK FORD'S S&L UNIT OFFER FOR FIRST NATIONWIDE IS LIKELY TO BE CLOSE TO RIVAL 1 BILLION BIDS BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO GOLDEN WEST FINANCIAL CORP PLANS TO ENTER THE BIDDING FOR FORD MOTOR CO'S UNPROFITABLE THRIFT UNIT FIRST NATIONWIDE FINANCIAL CORP PEOPLE CLOSE TO THE SITUATION SAID TERMS OF GOLDEN WEST'S EXPECTED BID COULDN'T BE LEARNED ALTHOUGH IT IS LIKELY TO BE CLOSE TO THE ESTIMATED 1 BILLION THE THRIFT HAS RECEIVED FROM TWO OTHER SUITORS LAST MONTH FIRST NATIONWIDE RECEIVED A BID FROM DALLASBASED MADISON FINANCIAL INC AND A JOINT BID FROM LOS ANGELESBASED GREAT WESTERN FINANCIAL CORP AND LEHMAN BROTHERS INC OFFICIALS AT FIRST NATIONWIDE HOPE THE EXPECTED ENTRY OF GOLDEN WEST COULD BUMP THE BIDDING TO AS HIGH AS 12 BILLION FIRST NATIONWIDE HAS SET A MONDAYNIGHT DEADLINE FOR FINAL BIDS AND IS EXPECTED TO ANNOUNCE THE WINNING PROPOSAL SOMETIME NEXT WEEK IF THE BIDDING GOES THAT HIGH FORD WOULD COME CLOSE TO RECOUPING THE 13 BILLION IT PLOWED INTO THE THRIFT SINCE 1985 ALTHOUGH ITS EARNINGS ON THE INVESTMENT WILL HAVE BEEN NIL FIRST NATIONWIDE POSTED LOSSES FOR THE PAST THREE YEARS TOTALING 200 MILLION MAINLY FROM SOURED APARTMENT LOANS AND A PORTFOLIOHEDGING STRATEGY GONE AWRY OFFICIALS AT FIRST NATIONWIDE AND THE BIDDING COMPANIES DECLINED TO COMMENT GOLDEN WEST'S INTEREST IN FIRST NATIONWIDE WAS SPARKED AFTER ITS ATTEMPT TO ACQUIRE ANOTHER STRUGGLING THRIFT CALIFORNIA FEDERAL BANK IN LOS ANGELES WAS REBUFFED LAST MONTH ANALYSTS SAID GOLDEN WEST BASED IN OAKLAND CALIF ONE OF THE INDUSTRY'S STAR PERFORMERS IS LOOKING FOR WAYS TO GENERATE NEW PROFITS AT A TIME WHEN LOAN GROWTH IS ANEMIC GENERAL ELECTRIC CAPITAL CORP AND KIDDER PEABODY & CO BOTH UNITS OF GENERAL ELECTRIC CO FAIRFIELD CONN ARE WORKING WITH GOLDEN WEST ON ITS BID GREAT WESTERN'S GROUP ALSO NOW INCLUDES SEVERAL OTHER FINANCIAL INSTITUTIONS WHO WANT TO BUY SOME OF FIRST NATIONWIDE'S 181 BRANCHES MAINLY LOCATED IN CALIFORNIA OHIO MICHIGAN FLORIDA NEW YORK AND NEW JERSEY FIRST NATIONWIDE HAS TOTAL ASSETS OF 16 BILLION THE IDENTITY OF GREAT WESTERN'S OTHER PARTNERS COULD NOT BE DETERMINED GREAT WESTERN THE NATION'S SECOND LARGEST THRIFT IS AN UNLIKELY BUYER FOR SAN FRANCISCOBASED FIRST NATIONWIDE SAYS JONATHAN GRAY AN ANALYST WITH SANFORD C BERNSTEIN & CO BECAUSE IT NEEDS LOANS NOT MORE DEPOSITS OR BRANCHES AND FIRST NATIONWIDE'S LOANORIGINATION CAPACITY IS SMALL FOR ITS SIZE IT'S A BATTLESHIP WITH TINY GUNS HE SAID ONE STRATEGY WOULD BE TO USE THE BRANCHES AS BEACHHEADS AROUND THE COUNTRY AND WORK TO EXPAND LENDING OPERATIONS A PLAN THAT GOLDEN WEST MAY PURSUE ACCORDING TO A PERSON CLOSE TO THE DEAL LEHMAN THE INVESTMENTBANKING UNIT OF AMERICAN EXPRESS CO IS AFTER THE THRIFT'S PROBLEM ASSETS TOTALING 870 MILLION AT YEAREND 1993 THE BUYER WILL HAVE THE RIGHT TO SELL 500 MILLION OF THOSE ASSETS BACK TO FIRST NATIONWIDE AND THUS WILL BE PROTECTED FROM MOST CREDIT RISK IN THE TRANSACTION LATELY LEHMAN HAS BEEN A BIG PURCHASER OF MORTGAGES BOTH PERFORMING AND NONPERFORMING WHICH IT HOPES TO RESELL FOR A PROFIT AS PROPERTY MARKETS RECOVER THE THIRD BIDDER MADISON IS LED BY TEXAS INVESTOR GERALD J FORD WHO IS ATTEMPTING TO RAISE FINANCING THROUGH A PRIVATE PLACEMENT OF EQUITY FIRST NATIONWIDE HAS BEEN ON THE BLOCK SINCE NOVEMBER 9404080123 940408 ANNTAYLOR SALES ROSE IN MARCH NEW YORK ANNTAYLOR STORES CORP SAID SALES FOR THE FIVE WEEKS ENDED APRIL 2 ROSE 27 TO 564 MILLION FROM 445 MILLION WHILE SALES AT STORES OPEN AT LEAST A YEAR ROSE 14 MARCH SALES WERE AIDED BY THE ONEWEEK SHIFT IN THE EASTER HOLIDAY TO MARCH THIS YEAR FROM APRIL IN 1993 FOR THE FISCAL YEARTODATE SALES TOTALED 938 MILLION UP 26 FROM 746 MILLION A YEAR EARLIER AND UP 13 ON A SAMESTORE BASIS ANNTAYLOR OPERATES 234 STORES IN 38 STATES AND THE DISTRICT OF COLUMBIA 9404080122 940408 BUSINESS BRIEF TYSON FOODS INC POULTRY PROCESSOR EXTENDS HOSTILE BID FOR WLR FOODS TYSON FOODS INC SAID IT EXTENDED ITS HOSTILE TENDER OFFER TO ACQUIRE WLR FOODS INC FOR 30 A SHARE TO JUNE 3 FROM APRIL 8 THE SPRINGDALE ARK POULTRY PROCESSOR SAID IT'S EXTENDING THE TENDER OFFER BEYOND A COURT HEARING ON ITS CHALLENGES TO WLR'S TAKEOVER DEFENSES WHICH IS SCHEDULED IN LATE MAY IN US DISTRICT COURT IN CHARLOTTESVILLE VA THE EXTENSION ALSO ALLOWS TIME TO SATISFY CERTAIN OTHER CONDITIONS IN TYSON'S OFFER THE COMPANY SAID TYSON LAUNCHED THE TENDER OFFER LAST MONTH BUT WLR BASED IN HINTON VA HAS REBUFFED ITS OVERTURES 9404080121 940408 BONTON STORES SALES CLIMB YORK PA BONTON STORES INC SAID SALES FOR THE FIVE WEEKS ENDED APRIL 2 ROSE 89 TO 294 MILLION FROM 27 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR CLIMBED 104 YEARTODATE SALES SINCE FEBRUARY ROSE 97 TO 47 MILLION FROM 428 MILLION WHILE COMPARABLESTORE SALES ROSE 111 THE COMPANY OPERATES 35 DEPARTMENT STORES IN PENNSYLVANIA NEW YORK MARYLAND AND WEST VIRGINIA 9404080120 940408 BLYTH PLANS STOCK BUYBACK FOSTER CITY CALIF BLYTH HOLDINGS INC A SOFTWARE MAKER SAID IT PLANS TO BEGIN BUYING BACK AS MANY AS 340000 SHARES OF ITS COMMON STOCK ON THE OPEN MARKET 9404080119 940408 TUMBLE IN MORTGAGE SECURITIES SPARKS LAWSUITS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE RECENT DEBACLE IN THE MORTGAGEBACKED SECURITIES MARKET HAS TRIGGERED PUBLIC FIGHTS BETWEEN SOME BIG WALL STREET TRADING FIRMS AND THEIR INVESTMENTFUND CLIENTS IN A LAWSUIT FILED IN FEDERAL COURT HERE WASHINGTON GROUP LTD AN INVESTMENT FUND THAT HAS SUFFERED BIG BONDTRADING LOSSES ACCUSED BEAR STEARNS COS OF MAKING AN UNAUTHORIZED MORTGAGE DERIVATIVES TRADE AND MAKING UNREASONABLE DEMANDS FOR A MARGIN CALL WHICH REQUIRED WASHINGTON TO IMMEDIATELY PUT UP MORE CASH AND COLLATERAL TO OFFSET THE SHRIVELING VALUE OF ITS BOND PORTFOLIO IN A SEPARATE SERIES OF SUITS FILED IN A STATE COURT HERE A LEHMAN BROTHERS INC UNIT ALLEGED THAT FOUR FUNDS RUN BY ASKIN CAPITAL MANAGEMENT LP OWES LEHMAN A TOTAL OF 66 MILLION STEMMING FROM FINANCING ASKIN'S PURCHASES OF MORTGAGEBACKED BONDS THE RECENT LIQUIDATION OF THE ASKINMANAGED FUNDS AND THE RESULTING COLLAPSE OF MORTGAGEBACKED BOND PRICES INFLICTED LOSSES ON SEVERAL BIG SECURITIES FIRMS THAT LENT MONEY TO THE FUNDS THE LAWSUITS PROVIDE A RARE PEEK INTO THE INTERNAL CONFLICTS THAT ERUPT ON WALL STREET DURING MARKET PLUNGES SUCH AS THE RECENT UPHEAVAL IN MORTGAGEBACKED BONDS THE SUITS ALSO UNDERSCORE THE CHAOS NOW ENGULFING THE MORTGAGE MARKET AND HOW FIRMS CAN LOSE MONEY FINANCING THESE BONDS SEVERAL BIG WALL STREET FIRMS INCLUDING BEAR STEARNS GOLDMAN SACHS & CO GENERAL ELECTRIC CO'S KIDDER PEABODY GROUP INC AMERICAN EXPRESS CO'S LEHMAN UNIT AND EQUITABLE COS' DONALDSON LUFKIN & JENRETTE SECURITIES CORP HAVE HAD LOSSES TOTALING TENS OF MILLIONS OF DOLLARS IN THE BONDMARKET DISASTER TRADERS SAY LOOK FOR MORE BONDMARKET LITIGATION WALL STREET LAWYERS SAY AS INJURED PARTIES SEEK TO SPREAD THE BLAME AROUND BOTH THE BOND AND STOCK MARKET CRASHES OF 1987 TRIGGERED A FLURRY OF LAWSUITS AND ARBITRATION CASES SOME OF WHICH ARE STILL BEING FOUGHT TODAY THE SUIT AGAINST BEAR STEARNS STEMMED FROM A PRECIPITOUS SLIDE IN WASHINGTON GROUP'S BOND PORTFOLIO IN RECENT WEEKS ACCORDING TO THE COMPLAINT ON MONDAY AT 8 PM THE SUIT SAID BEAR STEARNS DEMANDED AN ADDITIONAL 3 MILLION IN CASH OR MARKETABLE SECURITIES ACCEPTABLE TO US TO COVER WASHINGTON'S LOSSES IF THE MARGIN CALL WASN'T MET BY 10 AM TUESDAY THE SUIT SAID BEAR STEARNS THREATENED ACTION INCLUDING THE LIQUIDATION OF THE BONDS IN WASHINGTON'S ACCOUNT WHICH WOULD WIPE OUT THE PORTFOLIO WASHINGTON SAYS BEAR STEARNS WAS UNREASONABLE BY REJECTING AN OFFER OF 144 MILLION OF ROCKSOLID ASSETS INCLUDING THE PERSONAL GUARANTEE OF DAVID MARGOLIS WASHINGTON'S PRINCIPAL TO MEET THE MARGIN CALL AT THE SAME TIME WASHINGTON SAID BEAR STEARNS MADE AN IMPROPER AND UNAUTHORIZED TRADE OF 1 MILLION OF MORTGAGE BONDS ACCORDING TO THE SUIT THE BONDS' VALUE WAS CUT IN HALF BY THE NEXT DAY THE SUIT SAID EXACERBATING THE MARGIN CALL AS IMPORTANT THE SUIT SAYS BEAR STEARNS HAD NO IDEA OF THE VALUE OF THE MORTGAGE BONDS IN SEVERAL PHONE CALLS VINCENT MATTONE A SENIOR BEAR STEARNS EXECUTIVE GAVE CONFLICTING ASSESSMENTS OF THE VALUE OF PLAINTIFF'S SECURITIES AND THEREFORE VIRTUALLY ADMITTED THAT THE MARGIN AMOUNT THAT WAS CLAIMED TO BE DUE COULD NOT BE SUBSTANTIATED THE SUIT ALLEGED WASHINGTON BEAR STEARNS AND MR MATTONE ALL DECLINED TO COMMENT US DISTRICT JUDGE MICHAEL B MUKASEY ON WEDNESDAY REFUSED WASHINGTON'S REQUEST FOR A TEMPORARY RESTRAINING ORDER TO PREVENT BEAR STEARNS FROM LIQUIDATING THE ACCOUNT WHICH IT SINCE HAS DONE A HEARING ON THE OTHER ASPECTS OF THE SUIT HASN'T YET BEEN SET IN THE OTHER ACTION LEHMAN GOVERNMENT SECURITIES INC ACCUSED FOUR ASKIN FUNDS GRANITE CORP GRANITE PARTNERS LP UNIGESTION INTERNATIONAL LTD AND QUARTZ HEDGE FUND OF FAILING TO MEET A SERIES OF MARGIN CALLS AFTER SHARP LOSSES BY THE ASKIN FUNDS LEHMAN SAYS THAT IT LIQUIDATED THE ASKIN ACCOUNTS BUT THAT THE SALES DID NOT COVER ALL THE OBLIGATIONS OF THE FUNDS TOTALING 66 MILLION ACCORDING TO PAPERS FILED IN THE CASE ASKIN DECLINED TO COMMENT JUSTICE ELLIOTT WILK OF NEW YORK'S STATE SUPREME COURT THIS WEEK ISSUED A TEMPORARY RESTRAINING ORDER BARRING THE FOUR ASKIN FUNDS FROM TRANSFERRING SELLING CONCEALING DEPOSITING OR OTHERWISE DISPOSING OF OR INTERFERING WITH THE 66 MILLION LEHMAN SAYS IT IS OWED A HEARING HAS BEEN SET FOR APRIL 20 9404080118 940408 SECOND ROUND OF ELECTIONS IN UKRAINE MAY PROVE FRUITFUL FOR REFORM BACKERS BY NATALIA A FEDUSCHAK SPECIAL TO THE WALL STREET JOURNAL ODESSA UKRAINE AS UKRAINIAN CITIZENS GEAR UP FOR THE SECOND ROUND OF PARLIAMENTARY ELECTIONS TOMORROW AND SUNDAY THE COUNTRY'S REFORMERS MAY HAVE SOMETHING TO CHEER ABOUT SOME WESTERN AND UKRAINIAN ANALYSTS PREDICT THAT AFTER THE STRONG SHOWING BY CONSERVATIVE FORCES IN THE FIRST ROUND OF UKRAINE'S PARLIAMENTARY ELECTIONS TWO WEEKS AGO DEMOCRATIC FORCES WILL DO BETTER THAN EXPECTED IN THE SECOND ROUND MANY PROREFORM CANDIDATES WILL BE RUNNING SAYS MYRON WASYLYK EXECUTIVE DIRECTOR OF THE WESTERNFUNDED COUNCIL OF ADVISERS TO THE UKRAINIAN PARLIAMENT I THINK THEY'LL DO WELL ONLY 73 SEATS OF THE 450MEMBER PARLIAMENT WERE FILLED AFTER THE FIRST ROUND OF ELECTIONS MARCH 27 AND A HANDFUL OF SECONDROUND RACES LAST WEEKEND OF THOSE 40 SEATS WERE WON BY INDEPENDENT CANDIDATES INCLUDING SOME KEY PROREFORMERS SUCH AS FORMER DEPUTY PRIME MINISTERS OF ECONOMIC REFORM VOLODYMYR LANOVIY AND VICTOR PYNZENYK THE COMMUNIST SOCIALIST AND AGRARIAN PARTIES HAVE WON 24 SEATS AND THE DEMOCRATICNATIONALIST PARTIES HAVE TAKEN NINE UNDER UKRAINE'S ELECTORAL SYSTEM SEVERAL ROUNDS MAY BE NECESSARY BEFORE CANDIDATES WIN A MAJORITY OF THE VOTES MOST OF THE PARLIAMENTARY SEATS ARE EXPECTED TO BE FILLED AFTER THE BULK OF THE SECONDROUND VOTING THIS WEEKEND ALTHOUGH THE OUTCOME MAY BE HARD TO PREDICT SOME UKRAINIAN LEADERS SAY DEMOCRATIC REFORMERS COULD WIN MORE THAN ONETHIRD OF THE SEATS ABOUT 35 DEMOCRATS I THINK THE NEW PARLIAMENT WILL HAVE MORE DEMOCRATS THAN THE ONE ELECTED IN 1990 SAYS THERE WILL BE ABOUT 35 DEMOCRATS IN THIS PARLIAMENT AS COMPARED TO 26 IN 1990 SAYS LEVKO LUKYANENKO COCHAIRMAN OF THE DEMOCRATICNATIONALIST UKRAINA BLOC HE PREDICTS ABOUT 35 OF PARLIAMENT WILL BE DEMOCRATS COMPARED WITH 26 IN 1990 HE EXPECTS THE PERCENTAGE OF COMMUNISTS TO FALL TO 40 WHILE STILL A SIGNIFICANT NUMBER THAT WOULD BE FEWER CONSERVATIVES THAN IN THE PREVIOUS PARLIAMENT COMMUNISTS VIRTUALLY DOMINATED THE OLD PARLIAMENT ELECTED BEFORE THE COLLAPSE OF THE SOVIET UNION SARAH FARNSWORTH OF THE NATIONAL DEMOCRATIC INSTITUTE A DEMOCRACYBUILDING ORGANIZATION FUNDED BY THE DEMOCRATIC PARTY OF THE US CREDITS ORGANIZATIONS LIKE THE PRODEMOCRACY MOVEMENT RUKH FOR THE ELECTION SUCCESS OF REFORMERS RUKH HAS DONE A LOT OF TRAINING AND ORGANIZATION IN COMMUNITIES THROUGHOUT UKRAINE'S REGIONS IT HAS SHOWN THAT IF YOU TRAIN AND ORGANIZE PEOPLE EARLY YOU CAN MAKE A DIFFERENCE SHE SAYS ESTABLISHED IN 1989 RUKH IS A GRASSROOTS ORGANIZATION BASED IN KIEV WITH BRANCHES IN ODESSA AND MOST MAJOR UKRAINIAN CITIES IT HAS BEEN AT THE FOREFRONT OF THE DEMOCRACY MOVEMENT IN THE COUNTRY DESPITE ORGANIZATIONAL DIFFICULTIES AND POWER STRUGGLES OVER ITS LEADERSHIP RUKH HAS ESTABLISHED A GOOD TEAM THEY'VE SENT A STRONG MESSAGE TO THE VOTERS THAT THEY HAVE A VISION FOR THE FUTURE THAT INCLUDES ECONOMIC REFORM AND OPPOSING THE OLD PARTY SYSTEM MS FARNSWORTH SAYS RUKH HAS PRESENTED THE IMAGE THAT THESE ARE GUYS YOU CAN TRUST PEOPLE ARE VOTING FOR THEM RUKH ALSO HAS THROWN ITS WEIGHT BEHIND PROREFORM CANDIDATES OUTSIDE ITS ORGANIZATION GIVING THE MOVEMENT CROSSPARTY APPEAL BEFORE THE FIRST ROUND OF ELECTIONS FOR INSTANCE RUKH PRINTED A BOOKLET NAMING SOME 308 CANDIDATES IT SUPPORTED OF THOSE ONLY 220 WERE RUKH MEMBERS THE IMPORTANT THING NOW IS NOT SO MUCH THAT RUKH PEOPLE GET INTO PARLIAMENT BUT THAT DEMOCRATS GET INTO PARLIAMENT SAYS DMYTRO PONOMARCHUK RUKH'S PRESS SECRETARY IN THE FIRST ROUND OF ELECTIONS 14 CANDIDATES SUPPORTED BY RUKH WON MORE THAN 50 OF THE VOTE EVEN IN THOSE DISTRICTS WHERE AS MANY AS 30 CANDIDATES RAN ON THE OTHER HAND FORMER PRIME MINISTER LEONID KUCHMA'S INTERREGIONAL BLOCK FOR REFORMS A COALITION PRIMARILY OF INDUSTRIALISTS HASN'T DONE AS WELL AS EXPECTED ONLY MR KUCHMA OF SOME 300 CANDIDATES FROM THE COALITION WON IN FIRSTROUND VOTING LIKE RUKH THE IBR IS PUSHING FOR ECONOMIC REFORM BUT SEES A PACT WITH RUSSIA AS UKRAINE'S ONLY WAY OUT OF ECONOMIC DIRE STRAITS THAT IDEA WINS SUPPORT IN EASTERN UKRAINE BUT GETS OPPOSITION IN WESTERN UKRAINE AND FROM RUKH SERHEI HOLOWATY A PROREFORM DEPUTY BACKED BY RUKH WHO WON IN THE FIRST ROUND OF ELECTIONS SAYS THE KUCHMA COALITION REPRESENTS THE THINKING OF ONLY ONE REGION IN UKRAINE IT DOESN'T HAVE A CROSSCOUNTRY APPEAL AND THEREFORE CAN'T UNITE AND MS FARNSWORTH SAYS THERE'S BEEN A LOT OF HYPE OVER KUCHMA AND HIS PROMINENCE BUT IT'S NEVER BEEN CLEAR FROM THE BEGINNING WHAT THE STRUCTURE IS OF THE KUCHMA BLOCK MOST OF THE PEOPLE WHO ARE RUNNING WITH HIM ARE UNKNOWN THE SUCCESS OF COMMUNIST PARTY CANDIDATES IS ATTRIBUTED PRIMARILY TO PEOPLE'S DISENCHANTMENT WITH SLOW ECONOMIC REFORM THEIR INFLUENCE WILL GROW IF WE DON'T STRAIGHTEN OUT THE ECONOMIC PROBLEMS SAYS RUKH LEADER VYACHESLAV CHORNOVIL WE NEED TO BEGIN REFORMS TODAY IF WE HAD MOVED QUICKER WITH REFORMS WE WOULDN'T HAVE MANY OF THE PROBLEMS WE HAVE TODAY HE SAYS 9404080117 940408 ARMCO FACES SUIT BY PENSION AGENCY OVER FORMER UNIT BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PENSION BENEFIT GUARANTY CORP SUED ARMCO INC TO RECOUP ABOUT 214 MILLION IN PENSION UNDERFUNDING PLUS INTEREST FOR A PENSION PLAN OF RESERVE MINING CO A FORMER ARMCO UNIT THE PBGC WHICH INSURES MANY PRIVATE PENSION PLANS SAID RESERVE MINING'S PLAN WAS UNDERFUNDED BY ABOUT 214 MILLION WHEN IT WAS TERMINATED IN MAY 1987 RESERVE MINING WAS A GENERAL PARTNERSHIP 50OWNED BY FIRST TACONITE INC A COMPANY THAT THE PBGC SAID WAS CREATED BY ARMCO TO HOLD ITS RESERVE MINING PARTNERSHIP INTEREST THE PBGC FILED SUIT IN US DISTRICT COURT IN MINNEAPOLIS BASING ITS ACTION PARTLY ON A FEDERAL APPEALS COURT DECISION IN 1991 INVOLVING MINNESOTA POWER & LIGHT CO'S SUCCESSFUL SUIT AGAINST ARMCO FOR A RESERVE MINING DEBT THAT COURT UPHELD A LOWERCOURT DECISION HOLDING THAT FIRST TACONITE WAS SIMPLY A PAPER COMPANY AND THAT BOTH FIRST TACONITE AND RESERVE MINING WERE ALTER EGOS OF ARMCO BECAUSE THEY WERE BOTH UNDERCAPITALIZED AND HAD NONFUNCTIONING OFFICERS AND DIRECTORS THE PBGC CONTENDS THAT BECAUSE BOTH RESERVE MINING AND FIRST TACONITE WERE ARMCO ALTER EGOS ARMCO IS LIABLE FOR THE UNFUNDED BENEFITS IN THE RESERVE MINING PENSION PLAN IT COVERS NEARLY 2000 FORMER WORKERS AND RETIREES RESERVE MINING AND FIRST TACONITE WENT INTO BANKRUPTCY PROCEEDINGS IN 1986 AND HAVE SINCE BEEN LIQUIDATED THE PBGC SAID THE AGENCY TOOK OVER THE RESERVE MINING PLAN LAST JULY THE PBGC SAID THAT IF IT RECOVERS THE AMOUNT SOUGHT IT WILL COVER ALL THE PENSION BENEFITS DUE TO THE 2000 PLAN PARTICIPANTS INCLUDING THAT PORTION THAT ISN'T GUARANTEED BY THE PBGC THE OTHER 50 INTEREST IN RESERVE MINING WAS OWNED BY REPUBLICRESERVE INC WHICH ITSELF WAS OWNED BY LTV CORP THE PBGC SAID THE AGENCY SAID IT DIDN'T SUE LTV TO HELP RECOVER THE RESERVE MINING PENSION BENEFITS BECAUSE THE PBGC DIDN'T LEARN OF THE ARMCO PAPERCOMPANY AND ALTEREGO CORPORATE RELATIONSHIPS UNTIL THE 1991 COURT DECISION AND IT WAS THEN TOO LATE UNDER FEDERAL BANKRUPTCY LAW TO FILE ANY LAWSUIT IF APPROPRIATE AGAINST LTV AFTER A PROLONGED LEGAL BATTLE THE PBGC EARLY LAST YEAR SIGNED AN AGREEMENT WITH LTV IN WHICH THE COMPANY WOULD FUND ITS OWN PENSIONS AGAIN AFTER EMERGING FROM BANKRUPTCYLAW PROCEEDINGS IT EMERGED FROM THOSE PROCEEDINGS IN MID1993 9404080116 940408 BIG THREE AUTO MAKERS PLAN FOR MORE OVERTIME ON STRONG DEMAND DETROIT THE BIG THREE AUTO MAKERS CONTINUE TO SCHEDULE OVERTIME AT MOST NORTH AMERICAN ASSEMBLY PLANTS IN AN EFFORT TO MEET STRONG DEMAND FOR VEHICLES GENERAL MOTORS CORP SAID IT PLANNED OVERTIME THIS WEEK AT EIGHT CAR AND ALL 14 OF ITS TRUCK ASSEMBLY PLANTS FORD MOTOR CO SAID IT HAS OPERATED OVERTIME THIS WEEK AT ALL OF ITS US ASSEMBLY PLANTS EXCEPT THE ATLANTA AND CHICAGO TAURUS/SABLE ASSEMBLY PLANTS AND ITS WIXOM MICH LUXURYCAR PLANT CHRYSLER CORP REPORTED THAT ONLY ONE OF ITS ASSSEMBLY PLANTS THE DETROIT VIPER LOCATION WOULDN'T BE WORKING OVERTIME THIS WEEK OR NEXT WHILE MOST OF THE OVERTIME SCHEDULING IS DRIVEN BY SALES DEMAND SOME OF THE OVERTIME IS AN ATTEMPT TO RECOUP LOST PRODUCTION OVER THE EASTER HOLIDAY ALTOGETHER THE AUTO MAKERS SAID THEY PLAN TO BUILD 219552 CARS AND TRUCKS THIS WEEK DOWN 61 FROM THE 233928 VEHICLES BUILT IN THE SAME WEEK A YEAR EARLIER THAT WEEK DIDN'T INCLUDE THE EASTER BREAK 9404080115 940408 EZ AGREES TO BUY RADIO STATION FAIRFAX VA EZ COMMUNICATIONS INC A RADIOSTATION OPERATOR SAID IT AGREED DEFINITIVELY TO ACQUIRE RADIO STATION KZOKFM IN SEATTLE FOR 198 MILLION FROM CLG MEDIA OF SEATTLE INC AFTER THE ACQUISITION FOR WHICH REGULATORY APPROVALS ARE REQUIRED EZ WILL OWN 15 STATIONS INCLUDING A PENDING PURCHASE 9404080114 940408 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN UNION WILL SET UP A PANEL OF INDEPENDENT MONETARY SPECIALISTS TO STUDY TECHNICAL PROBLEMS IN INTRODUCING A SINGLE CURRENCY FOR THE 12COUNTRY BLOC WHICH COULD ADD FOUR MEMBERS NEXT YEAR THE COMMITTEE WILL HAVE SIX MONTHS TO REPORT ON HOW THE EUROPEAN CURRENCY UNIT SHOULD BE TRANSFORMED INTO THE EU'S SINGLE CURRENCY THE MOVE COMES AMID RENEWED ALBEIT CAUTIOUS OPTIMISM AT THE EU ABOUT CHANCES FOR ECONOMIC AND MONETARY UNION LATER THIS DECADE GIVEN THE ECU'S RECENT STABILITY ON CURRENCY MARKETS AN EU TREATY ON BROADER EUROPEAN UNIFICATION PROVIDES FOR MONETARY UNION IN 1997 THOUGH AN EU COMMISSION OFFICIAL SAID THIS COURSE DEPENDS ON THE STRENGTH OF EUROPE'S ECONOMIC RECOVERY THE STUDY PANEL WILL DRAW ON TWO EU MEMBERS' CURRENCY CHANGES BRITAIN'S EARLY 1970S DECIMALIZATION AND GERMANY'S RECENT UNIFICATION AN EU PAPER ON ITS TRANSITION URGES ESTABLISHING A BODY MODELED ON BRITAIN'S SWITCH AND A CAMPAIGN TOUTING BENEFITS OF A SINGLE CURRENCY THE PERSONAL SAVINGS RATE IN GERMANY DECLINED TO 111 OF INFLATIONADJUSTED INCOMES AT THE END OF LAST YEAR FROM 131 TWO YEARS EARLIER THE INSTITUTE OF GERMAN ECONOMICS IN COLOGNE SAID THE DROP THE FIRST SINCE THE 1980S RECESSION WAS ATTRIBUTED TO A SHRINKAGE OF HOUSEHOLD INCOME SAVINGS TYPICALLY INCREASE DURING RECESSIONS AS PEOPLE TRY TO CREATE A SAFETY NET IN CASE OF JOB LOSSES BUT BECAUSE INFLATIONADJUSTED INCOMES HAVE DECLINED IN GERMANY'S CURRENT RECESSION HOUSEHOLDS HAVE BEEN FORCED TO SAVE LESS OR USE SAVINGS TO AVOID LOWER LIVING STANDARDS A PUBLIC TRANSPORTATION STRIKE ALL BUT PARALYZED THE PARIS METROPOLITAN REGION TEN OF THE STATERUN TRANSIT AUTHORITY'S 11 UNIONS CALLED THE ONEDAY WALKOUT TO PROTEST A PLANNED REFORM OF THE SYSTEM IN THE FRENCH REGION THAT INCLUDES THE CAPITAL EVEN THOUGH GOVERNMENT OFFICIALS SAID THE TRANSPORT EMPLOYEES' STATUS WOULDN'T BE ALTERED ABOUT HALF OF PARIS'S 13 SUBWAY LINES WERE SHUT DURING THE MORNING RUSH HOUR AND LESS THAN 15 OF METRO TRAINS AND BUSES OPERATED AS COMMUTERS TRIED TO DRIVE TO WORK AN ESTIMATED 140 MILES OF HIGHWAYS AROUND PARIS AS WELL AS CITY STREETS WERE CLOGGED WITH TRAFFIC THE FIRST INTERNATIONAL BRIDGE SPANNING THE 2500MILE MEKONG RIVER OPENS TODAY LINKING THAILAND AND LAOS AND ADVANCING HOPES FOR AN ASIAN HIGHWAY FROM SINGAPORE TO CHINA THE 294 MILLION FRIENDSHIP BRIDGE THREEQUARTERS OF A MILE LONG WILL OPEN LANDLOCKED LAOS TO A TRANSPORT NETWORK EXTENDING SOUTH TO THE GULF OF THAILAND MALAYSIA AND SINGAPORE WHILE THAI BUSINESS CONSIDERS THE BRIDGE A TRADE OPPORTUNITY LAOS FEARS TRAFFIC AND OTHER PROBLEMS LAOS A POOR COUNTRY ABIDES BY RULING COMMUNIST PRINCIPLES BUT IS COMMITTED TO ECONOMIC LIBERALIZATION THE ROMANIAN GOVERNMENT INCREASED FUEL PRICES REFLECTING HIGHER PRODUCTION AND IMPORT COSTS THE ACTION AFFECTS GASOLINE NATURAL GAS AND ELECTRICITY AND IN TURN PUBLIC TRANSIT RATHER THAN PROTEST FREQUENT PRICE INCREASES UNIONS DEMAND PAY RAISES AND QUICKER PRIVATIZATIONS SUBSIDIZED RESIDENTIAL ELECTRICITY RATES ROSE 42 BUSINESSES' UTILITY RATES COULD DOUBLE THE PRICE OF GASOLINE LAST BOOSTED FIVE MONTHS AGO ROSE 13 TO 27 CENTS A LITER THE NEW PRICES ARE FAR BELOW WESTERN EUROPEAN AVERAGES BUT SO IS ROMANIANS' AVERAGE SALARY AT 64 A MONTH NEWSPAPERS IN BULGARIA DENOUNCED PARLIAMENT'S REFUSAL TO EXEMPT THEM FROM THE 18 VALUEADDED TAX THAT TOOK EFFECT LAST FRIDAY ASSERTING THIS THREATENED FREE SPEECH IN A SECRET BALLOT LATE WEDNESDAY THE LAWMAKERS REJECTED A THREEYEAR TAX EXEMPTION FOR NEWSPAPERS LEGISLATORS EARLIER THIS WEEK DEFEATED ANOTHER PROPOSAL THAT WOULD HAVE EXEMPTED MEDIA ADVERTISEMENTS FROM THE VAT THE SPANISH GOVERNMENT REDUCED CELLULARTELEPHONE TARIFFS THAT WILL TAKE EFFECT MONDAY BY AN AVERAGE OF 15 IN A BID TO INCREASE USAGE AND BRING PRICES IN LINE WITH THE REST OF EUROPE THE GOVERNMENT AIMS THIS YEAR TO RAISE THE USAGE RATIO TO 10 CELLULAR PHONES FROM THE CURRENT 6 FOR EVERY 1000 PEOPLE THE CONNECTION FEE WAS SLASHED 60 TO 72STILL HIGHER THAN THE RANGE OF 32 TO 38 IN FRANCE GERMANY AND PORTUGAL MONTHLY FEES FOR INDIVIDUALS RANGING FROM 1585 TO 3245 REMAIN UNCHANGED THOUGH WEEKEND CALLS WILL BE DISCOUNTED 65 CORPORATE CUSTOMERS' MONTHLY FEES WERE REDUCED 17 TO 108 FOR THE FIRST LINE AND 33 TO 8650 FOR ADDITIONAL LINES TELEFONICA DE ESPANA SA HAS A MONOPOLY ON SPAIN'S CELLULAR OPERATIONS A SECOND OPERATING LICENSE IS TO BE AWARDED THIS YEAR ANALYSTS SAID THE TARIFF REDUCTIONS COULD SPUR STRONG GROWTH FOR THE TELECOMMUNICATIONS COMPANY BEFORE THE MARKET IS OPENED TO COMPETITION AUSTRIA SCHEDULED FOR JUNE 12 A NATIONAL REFERENDUM ON THE GOVERNMENT'S AGREEMENT TO JOIN THE EUROPEAN UNION PROPOSED FOR JAN 1 APPROVAL IS EXPECTED LITHUANIA'S TEMPORARY TALONAS CURRENCY INTRODUCED IN 1992 IN THE TRANSITION FROM THE OLD SOVIET RUBLE TO THE CURRENT LITAS IS BACK IN CIRCULATION AS TOILET PAPER A VILNIUS FACTORY IS CONVERTING INTO TISSUE 30 TONS OF THE ABSORBENT TALONAS BANKNOTES WHICH WERE DUBBED ZOO TICKETS BECAUSE THEY BORE PICTURES OF ANIMALS 9404080113 940408 NUCLEAR PLANT DECLARES AN ALERT IN NEW JERSEY WASHINGTON A NUCLEAR PLANT IN NEW JERSEY DECLARED AN ALERT AFTER SEVERAL PUMPS AND VALVES FAILED TO OPERATE PROPERLY NO RADIOACTIVE MATERIAL WAS RELEASED AND NONE IS IN DANGER OF BEING RELEASED ACCORDING TO ED WENZINGER TECHNICAL BRANCH CHIEF FOR THE NUCLEAR REGULATORY COMMISSION IN NEARBY KING OF PRUSSIA PA BUT BECAUSE OF COMPOUNDED TECHNICAL PROBLEMS AT THE PLANT THE UTILITY PUBLIC SERVICE ELECTRIC & GAS CO HANCOCKS BRIDGE NJ UPGRADED ITS INITIAL DESIGNATION OF THE MISHAP FROM AN UNUSUAL EVENT TO AN ALERT ALERTS USUALLY OCCUR THREE OR FOUR TIMES A YEAR MR WENZINGER SAID AN ALERT FALLS SHORT OF A SITE AREA EMERGENCY WHICH IN TURN FALLS SHORT OF A GENERAL EMERGENCY THE DESIGNATION FOR THE WELLKNOWN 1979 MISHAP AT THREE MILE ISLAND AT THE NEW JERSEY PLANT THE MALFUNCTION BEGAN WHEN AN INTAKE PIPE THAT DRAWS WATER FROM THE DELAWARE RIVER BECAME CLOGGED WITH GRASS AFTER OPERATORS REDUCED POWER TO DEAL WITH THE PROBLEM MR WENZINGER SAID THE POWER UNACCOUNTABLY INCREASED CAUSING THE EMERGENCY SYSTEM TO SHUT THE PLANT DOWN A SPOKESWOMAN FOR THE UTILITY DECLINED TO COMMENT BUT A STATEMENT ISSUED BY THE UTILITY SAID THE ALERT WAS A PRECAUTIONARY MEASURE AND THAT AN INVESTIGATION OF THE EVENT IS UNDER WAY 9404080112 940408 INTERNATIONAL FOREIGN INVESTMENT BANKERS FACE LIMITS ON CHINESE UNDERWRITINGS BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA FOREIGN INVESTMENT BANKS COMPETING TO UNDERWRITE CHINESE COMPANIES SELECTED FOR LISTING ON OVERSEAS STOCK MARKETS WILL BE ALLOWED TO REPRESENT NO MORE THAN ONE OR TWO EACH A SENIOR SECURITIES OFFICIAL SAID THE GOVERNMENT FEARS THAT SOME LARGE US AND HONG KONG INVESTMENT BANKS THREATEN TO NEARLY MONOPOLIZE THE UNDERWRITING MARKET FOR THE 22 SELECTED FIRMS THE OFFICIAL OF THE CHINA SECURITIES REGULATORY COMMISSION SAID THE OFFICIAL WHO ASKED NOT BE IDENTIFIED SAID SOME SMALLER BANKS WITH FEWER CONNECTIONS IN CHINA SHOULD BE ENCOURAGED TO TAKE PART IN THE SHARE OFFERINGS AT LEAST UNTIL CHINESE COMPANIES BECOME MORE EXPERIENCED IN CHOOSING AN UNDERWRITER THE LIMITATION WILL COME AS A SURPRISE TO MANY INVESTMENT BANKS WHICH HAVE COMPETED VIGOROUSLY FOR SEVERAL MONTHS TO LINE UP AS MANY UNDERWRITING JOBS AS POSSIBLE AMONG THE 22 COMPANIES BEIJING WILL PERMIT TO MAKE FOREIGN SHARE OFFERINGS JOHN MACK MORGAN STANLEY GROUP INC'S PRESIDENT SAID LAST MONTH THAT MORGAN INTENDED TO WIN UNDERWRITING JOBS AT FOUR OF THE COMPANIES OTHER LARGE US EUROPEAN AND ASIAN FIRMS BEEN DOING EVERYTHING THEY CAN TO WIN BUSINESS WINING AND DINING CHINESE OFFICIALS THROWING OFFICEOPENING PARTIES AND TROTTING OUT SENIOR BANK EXECUTIVES FOR HIGHPROFILE VISITS TO CHINA MORE IMPORTANT MANY HAVE SPLURGED ON TALENTED YOUNG MAINLAND CHINESE GOLDMAN SACHS & CO HAS FILLED ITS HONG KONG OFFICE WITH CHINESEBORN USEDUCATED YOUNG EXECUTIVES EVERYBODY WANTS TO HIRE A CHINESE WITH A DEGREE FROM HARVARD OR STANFORD AND EXPERIENCE ON WALL STREET A HONG KONG EXECUTIVE RECRUITER MAX LUMMIS SAID IN A RECENT INTERVIEW ADDS LIU ERHFEI A 35YEAROLD HARVARD BUSINESS SCHOOL GRADUATE WHO HAS WORKED FOR GOLDMAN SACHS AND MORGAN STANLEY AND WHO NOW HEADS SMITH BARNEY ASIA AMERICAN INVESTMENT BANKS MAY NOT KNOW HOW TO FIT INTO CHINA CHINESE PEOPLE CAN TELL WHO'S GOOD AND WHO'S NOT SMITH BARNEY ASIA IS A UNIT OF SMITH BARNEY SHEARSON INC WHICH IN TURN IS OWNED BY TRAVELERS INC YET THE CAP ON THE NUMBER OF ISSUES FOREIGN FIRMS CAN UNDERWRITE SHOWS THAT CHINA MAY STILL DISTRUST MERCENARY AGENTS OF A FREE MARKET THE GOVERNMENT SELECTED THE COMPANIES THAT WILL BE PERMITTED TO LIST THEIR STOCK ABROAD AND BEIJING INTENDS FOR THE LISTINGS TO SUCCEED THE SECURITIES REGULATOR SAID THE LIMITATION IS NOT AN ALLOCATION STRESSING THAT THE COMPANIES WILL HAVE THE RIGHT TO SUGGEST THEIR OWN UNDERWRITER BUT HE SAID THEY WILL HAVE TO SUBMIT A FIRST SECOND AND THIRD CHOICE TO THE REGULATORY COMMISSION IF A COMPANY'S FIRST CHOICE ALREADY REPRESENTS ONE OR TWO OTHER FIRMS THE COMMISSION WILL INSTRUCT THE FIRM TO PICK ITS SECOND OR THIRD CHOICE WE HAVE AN IMMATURE SECURITIES MARKET THE SECURITIES OFFICIAL SAID HAVING LOTS OF FRIENDS OR TAKING PEOPLE OUT FOR EXPENSIVE DINNERS DOESN'T MEAN YOU CAN DO A GOOD JOB REPRESENTING THE FIRM HE ADDED THE OFFICIAL DESCRIBED CHINESE COMPANIES AS SUSCEPTIBLE TO CHOOSING BRAND NAME INVESTMENT BANKS WHICH HE SAID COULD LEAD TO A MONOPOLY SITUATION HE SAID EVEN THE LARGEST AMERICAN INVESTMENT BANKS WOULD FIND IT DIFFICULT OR IMPOSSIBLE TO EFFECTIVELY REPRESENT MORE THAN TWO CHINESE COMPANIES OF THE CURRENT BATCH OF 22 IF ONLY BECAUSE OF THE TIME AND AMOUNT OF PREPARATION REQUIRED FOR AN OVERSEAS LISTING WE SAW THIS LAST YEAR WITH THE NINE HE SAID REFERRING TO THE FIRST BATCH OF NINE CHINESE COMPANIES TO LIST SHARES IN HONG KONG THE UNDERWRITERS WERE RELYING ON KIDS RIGHT OUT OF COLLEGE SOMETIMES EVEN COLLEGE STUDENTS ON SUMMER VACATION WERE DOING THE WORK THAT SHOULD BE DONE BY MORE EXPERIENCED PEOPLE THE OFFICIAL SAID THE GOVERNMENT WOULD ALSO PLACE A LOOSER CAP ON THE NUMBER OF FIRMS AN ACCOUNTING COMPANY CAN REPRESENT SUGGESTING THAT EACH SUCH COMPANY SHOULD HANDLE NO MORE THAN THREE OR FOUR OF THE 22 SOME INVESTMENT BANKERS AND ACCOUNTING EXECUTIVES SAID RECENTLY THAT CUTTHROAT COMPETITION TO WORK WITH AS MANY CHINESE FIRMS AS POSSIBLE HAD LED TO SOME SITUATIONS THAT WOULD BE CONSIDERED UNETHICAL ON WALL STREET AS ONE BANKER PUT IT IN PARTICULAR SOME BANKS HAVE PROMISED CHINESE COMPANIES THAT THEY COULD DELIVER PRICE/EARNINGS RATIOS IN THE 30S AND 40S AND OFFERED TO SLASH COMMISSIONS IN ORDER TO WIN CLIENTS CRITICS SAID MOST OF THE 22 COMPANIES WILL LIST SHARES ON THE HONG KONG STOCK EXCHANGE WHERE P/E RATIOS AVERAGE IN THE LOW TEENS A FEW OF THE COMPANIES PLAN PRIMARY LISTINGS IN NEW YORK INVESTMENT BANKS ARE NOT PERMITTED TO RECRUIT CHINESE COMPANIES TO LIST ABROAD ON THEIR OWN THE CURRENT BATCH OF 22 WHICH INCLUDES TRANSPORTATION ENERGY AND HEAVYINDUSTRY CONCERNS WILL PROBABLY BEGIN LISTING LATER THIS YEAR BUT THE PROCESS MAY STRETCH THROUGH THE END OF 1995 OFFICIALS SAID RICHARD GRAHAM CHIEF REPRESENTATIVE FOR BARING BROTHERS & CO IN CHINA SAID RESTRICTIONS THAT ALLOWED A WIDER VARIETY OF UNDERWRITING FIRMS TO WIN BUSINESS IN CHINA MAKES SOME SENSE THERE JUST AREN'T MANY MAJOR BANKS THAT COULD HANDLE MORE BUSINESS THAN THAT IT WOULD STRETCH THEIR EXPERIENCE HE SAID ANOTHER BANKER WAS MORE SKEPTICAL SAYING NEW RESTRICTIONS FURTHER DELAYED THE DAY WHEN THE MARKET DECIDES NOT ONLY WHICH INVESTMENT BANKS SUCCEED IN CHINA BUT WHICH COMPANIES APPEAL TO OVERSEAS INVESTORS THE GOVERNMENT TREATS US LIKE KIDS IN A SCHOOLYARD FIGHTING OVER A PIECE OF CANDY LIKE OK IF YOU'RE ALL GOOD YOU CAN HAVE ONE PIECE' HE SAID 9404080111 940408 WMX CHIEF WILL RECEIVE NO RAISE IN '94 BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WMX TECHNOLOGIES INC STRUGGLING WITH SLOWED GROWTH IN THE ENVIRONMENTAL SERVICES INDUSTRY WON'T RAISE THE 14 MILLION BASE SALARY OF ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER DEAN L BUNTROCK IN 1994 A COMPANY OFFICIAL SAID THE COMPANY'S NO 2 EXECUTIVE MEANWHILE PRESIDENT AND CHIEF OPERATING OFFICER PHILLIP B ROONEY HAD ANOTHER BIG YEAR IN 1993 WITH TOTAL COMPENSATION OF 54 MILLION ACCORDING TO WMX PROXY MATERIAL MOST OF THAT AMOUNT CAME FROM GAINS ON OPTIONS HE EXERCISED TO BUY STOCK IN A MAJORITYOWNED UNIT WHEELABRATOR TECHNOLOGIES INC TOP OFFICERS OF WMX A TRASH HAULING COMPANY BASED IN OAK BROOK ILL HAVE IN RECENT YEARS BEEN AMONG THE MORE HIGHLY PAID CORPORATE EXECUTIVES LARGELY DUE TO HEFTY GAINS ON STOCK OPTIONS AS SHARES OF THE CORPORATE PARENT AND SOME OF ITS PUBLICLY TRADED UNITS ROSE SHARPLY IN RECENT MONTHS HOWEVER WASTE COMPANY SHARES HAVE TAKEN A NOSE DIVE REACTING TO LOWERTHANEXPECTED VOLUMES OF TRASH AND FIERCE PRICE CUTTING WMX FORMERLY WASTE MANAGEMENT INC HAD UNTIL RECENTLY BLAMED THE RECESSION FOR MOST OF ITS WOES BUT MR BUNTROCK NOW ACKNOWLEDGES THE SLACK ECONOMY MASKED TO A CERTAIN EXTENT SOME IMPORTANT STRUCTURAL CHANGES IN THE WASTE BUSINESS THAT ARE CUTTING INTO PROFITS THE TOP TWO OFFICERS ARE EXPECTED THIS YEAR TO TURN MORE OF THEIR ATTENTION TO IMPROVING RETURNS ON HUGE RECENT INVESTMENTS IN THE COMPANY'S NORTH AMERICAN GARBAGE BUSINESS WHICH ACCOUNTED FOR ABOUT HALF OF 1993 REVENUE OF 914 BILLION MR BUNTROCK'S 1993 BASE SALARY OF 14 MILLION WAS A 27 INCREASE OVER 1992 SALARY OF 11 MILLION HE AND OTHER TOP OFFICERS RECEIVED NO 1993 BONUS HOWEVER IN PART BECAUSE WMX'S PROFIT SKIDDED 47 TO 4528 MILLION OR 93 CENTS A SHARE INCLUDING SOME BIG CHARGES TO WRITE DOWN THE VALUE OF HAZARDOUS WASTE INCINERATORS IN 1992 MR BUNTROCK RECEIVED A 550000 BONUS BEYOND DISCLOSING THAT MR BUNTROCK'S BASE PAY WAS HELD EQUAL TO LAST YEAR'S THE COMPANY OFFICIAL WOULDN'T COMMENT ON EXECUTIVE COMPENSATION MR BUNTROCK IS ELIGIBLE FOR A BONUS OF UP TO HALF HIS BASE PAY IF WMX ACHIEVES CERTAIN PROFIT AND STOCKPRICE GOALS IN 1994 THE COMPANY WON'T DISCLOSE THOSE GOALS MR ROONEY'S 1993 BASE SALARY OF 1 MILLION WAS AN 11 INCREASE OF THE 1992 BASE PAY OF 900000 HE ALSO RECEIVED A 382500 CASH BONUS THAT YEAR MOST OF HIS COMPENSATION THE PAST TWO YEARS CAME FROM EXERCISING WHEELABRATOR OPTIONS HE HAD 1992 GAINS OF 103 MILLION AND 1993 GAINS OF 43 MILLION THOSE EXERCISES EXHAUST A 16 MILLIONSHARE OPTION PACKAGE HE RECEIVED WHEN HE TOOK ON THE ADDITIONAL DUTIES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WHEELABRATOR WHICH OPERATES GARBAGE INCINERATORS AND MARKETS AIR AND WATER POLLUTIONCONTROL EQUIPMENT 9404080110 940408 INTERNATIONAL BRITISH TELECOM SETS LINK WITH NORWAY'S STATE PHONE CONCERN LONDON BRITISH TELECOMMUNICATIONS PLC AND THE NORWEGIAN STATE PHONE COMPANY SAID THEY FORMED A STRATEGIC ALLIANCE IN WHICH BT WILL HELP PROVIDE A GROWING SHARE OF NORWAY'S INTERNATIONAL BUSINESSCOMMUNICATIONS SERVICES THE PARTNERSHIP ENDS A MONTHSLONG SEARCH BY NORWEGIAN TELECOM FOR A BIG BROTHER IN THE GLOBAL TELECOMMUNICATIONS INDUSTRY TO HELP IT PROVIDE NORWAY'S BIG OIL INDUSTRY AND MULTINATIONAL COMPANIES WITH THE FANCY GLOBAL COMMUNICATIONS SERVICES THEY'RE DEMANDING BESIDES BT A NORWEGIAN TELECOM SPOKESMAN SAID HIS COMPANY ALSO CONSIDERED AMERICAN TELEPHONE & TELEGRAPH CO SPRINT CORP AND UNISOURCE NV AN ALLIANCE OF THE SWEDISH SWISS AND DUTCH PHONE COMPANIES THE ANNOUNCEMENT YESTERDAY AT AN OSLO NEWS CONFERENCE IS THE LATEST STEP IN A FRENZIED MATING DANCE IN THE EUROPEAN PHONEINDUSTRY AS COMPETITION HEIGHTENS IN THE ONCECLOSED EUROPEAN TELECOMMUNICATIONS MARKET SMALLER PHONE COMPANIES ARE CONCLUDING THEY CAN'T AFFORD BY THEMSELVES TO DEVELOP AND MAINTAIN ALL THE SOPHISTICATED INTERNATIONAL SERVICES THAT THEIR BIGGEST CUSTOMERS ARE CLAMORING FOR AS A RESULT COMPANIES IN SMALL COUNTRIES SUCH AS NORWAY BELGIUM IRELAND AND DENMARK HAVE BEEN COURTING BIGCOUNTRY PARTNERS IN GERMANY FRANCE BRITAIN OR THE US ALREADY A COMPLEX WEB OF CROSSBORDER ALLIANCES IS FORMING THE NORWEGIAN TELECOM SPOKESMAN DESCRIBED THE BT PACT AS A BROAD FRAMEWORK UNDER WHICH HIS COMPANY WILL DISTRIBUTE MANY BT SERVICES IN NORWAY IN SOME CASES JUST CONNECTING NORWAY'S EXISTING BUSINESSCOMMUNICATIONS SERVICES TO BT'S INTERNATIONAL NETWORK AND IN OTHER CASES INSTALLING BT SYSTEMS IN NORWAY THE FIRST SERVICES TO BE OFFERED ARE BT'S SOCALLED MANAGED DATA NETWORK AND LAN INTERCONNECT TWO DATACOMMUNICATIONS SERVICES FOR BUSINESSES 9404080109 940408 SMALL STOCK FOCUS BOND RALLY AND A BOUNTY OF BARGAINS GET STOCKBUYING BANDWAGON ROLLING BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK A STRONGER BOND MARKET SHORTCOVERING AND THE OPPORTUNITY TO BARGAIN SHOP COMBINED TO PUSH SMALLCAPITALIZATION STOCKS HIGHER THE BENCHMARK 30YEAR TREASURY BOND WAS UP 3/8 WHILE ITS YIELD FELL TO 720 THE RUSSELL 2000 INDEX OF SMALLCOMPANY STOCKS ADVANCED 142 OR 06 TO 25595 THE NASDAQ COMPOSITE INDEX ROSE 445 OR 06 TO 75517 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 156 OR 06 TO 25022 THE DOW JONES INDUSTRIAL AVERAGE ROSE 1353 OR 04 TO 369326 NASDAQ STOCK MARKET ADVANCERS OUTNUMBERED DECLINERS 1733 TO 1373 ON VOLUME OF 285 MILLION SHARES COMPARED WITH 294 MILLION SHARES A DAY EARLIER NATIONAL MARKET VOLUME WAS 244 MILLION SHARES COMPARED WITH 257 MILLION SHARES ON WEDNESDAY STAC ELECTRONICS SOARED 1 3/8 OR 26 TO 6 5/8 AFTER THE CARLSBAD CALIF TECHNOLOGY COMPANY SAID IT WAS EXTENDING ITS STACKER 40 DATA COMPRESSION SOFTWARE FOR WINDOWS AND DOS UPGRADE TO USERS OF MSDOS 60 PC DOS 61 AND NOVELL DOS 7 ALSO PUSHING THE STOCK HIGHER ANALYSTS SAID WAS NEWS OF AN INTERNATIONAL BUSINESS MACHINES LICENSING PACT THAT WILL HELP PUT STAC'S COMPRESSION TECHNOLOGY IN ABOUT A QUARTER OF THE PERSONAL COMPUTERS SHIPPED EACH YEAR INDUSTRYWIDE THE IBM AGREEMENT COMES ON THE HEELS OF A SIMILAR ACCORD BETWEEN STAC AND COMPAQ COMPUTER ABOUT TWO WEEKS AGO STANDARD MICROSYSTEMS SURGED 2 7/16 OR 15 TO 18 9/16 AFTER THE HAUPPAUGE NY SEMICONDUCTOR COMPANY REPORTED FOURTHQUARTER EARNINGS OF 45 CENTS A SHARE WHICH WERE IN LINE WITH ANALYSTS' EXPECTATIONS AND WELL AHEAD OF THE YEAREARLIER EARNINGS OF 37 CENTS AST RESEARCH GAINED 2 1/4 OR 12 TO 21 3/4 AFTER BEAR STEARNS UPGRADED THE STOCK TO BUY FROM HOLD THE INVESTMENT FIRM SAID A SURVEY SHOWED PERSONALCOMPUTER DEMAND ACCELERATED TOWARD THE END OF MARCH AND THAT THE IRVINE CALIF COMPUTER COMPANY'S NEW PC PRODUCT CYCLE HOLDS PLENTY OF PROMISE CENTOCOR A MALVERN PA BIOTECH COMPANY WAS UP 3/4 OR 8 TO 10 ACCORDING TO REPORTS IN TWO MEDICAL JOURNALS THE COMPANY'S BLOODCLOTTING DRUG CENTORX APPEARS TO SIGNIFICANTLY IMPROVE THE SUCCESS OF ANGIOPLASTY WHICH IS PERFORMED ON 400000 AMERICANS ANNUALLY WEST MARINE SAILED HIGHER BY 1 1/2 OR 78 TO 20 3/4 AFTER THE WATSONVILLE CALIF BOATINGSUPPLY COMPANY REPORTED THAT MARCH SAMESTORE SALES ROSE 16 FROM THE YEAREARLIER PERIOD AND THAT TOTAL MARCH SALES ROSE 42 ONE PRICE CLOTHING STORES A DUNCAN SC RETAIL STORE CHAIN ADVANCED 1 1/4 OR 49 TO 26 3/4 AFTER IT REPORTED A 14 INCREASE IN SAMESTORE SALES AND A 42 RISE IN TOTAL SALES FOR THE FIRST QUARTER COMPARED WITH A YEAR EARLIER BENCHMARK ELECTRONICS AMEX ROSE 7/8 OR 36 TO 25 1/8 AFTER WHEAT FIRST BUTCHER & SINGER REINSTATED COVERAGE OF THE CLUTE TEXAS CIRCUITBOARD COMPANY WITH A LONGTERM BUY RATING WHEAT FIRST CITED BENCHMARK'S STRONG MANAGEMENT AND THE COMPANY'S MARKET POSITION IN AN INDUSTRY IT EXPECTS TO GROW BY 20 IN 1994 WHEAT FIRST EXPECTS THE COMPANY'S EARNINGS TO GROW 28 THIS YEAR MOLECULAR DYNAMICS PLUMMETED 3 7/8 OR 39 TO 6 1/8 AFTER THE COMPANY SAID IT EXPECTS TO HAVE A SUBSTANTIAL FIRSTQUARTER LOSS ON SALES THAT WILL BE 20 LOWER THAN THOSE OF THE YEAREARLIER PERIOD THE SUNNYVALE CALIF IMAGINGEQUIPMENT COMPANY ALSO SAID IT EXPECTS SECONDQUARTER RESULTS TO FALL BELOW PREDICTIONS BECAUSE OF WEAKNESS IN ITS EUROPEAN AND PACIFIC RIM MARKETS GREAT LAKES AVIATION SANK 3 1/4 OR 27 TO 8 5/8 AFTER PIPER JAFFRAY CUT ITS RATING ON THE STOCK TO ACCUMULATE FROM BUY CITING BAD WEATHER AND UNEXPECTEDLY HIGH EXPENSES PIPER LOWERED ITS EARNINGS ESTIMATES AND NOW EXPECTS THE SPENCER IOWA AIRLINE TO BREAK EVEN FOR THE FIRST QUARTER COMPARED WITH THE PREVIOUS PROJECTION OF AN EIGHTCENT PERSHARE PROFIT CALGENE SKIDDED 2 1/8 OR 14 TO 12 5/8 AFTER MERRILL LYNCH LOWERED ITS INTERMEDIATETERM RATING ON THE DAVIS CALIF BIOTECH COMPANY TO NEUTRAL FROM ABOVE AVERAGE WHILE MAINTAINING ITS LONGTERM RATING OF ABOVE AVERAGE SOFTWARE PUBLISHING WAS OFF 1 OR 14 TO 6 1/8 ON NEWS THE SANTA CLARA CALIF SOFTWARE COMPANY WILL LAY OFF HALF OF ITS 480 EMPLOYEES OVER THE NEXT 90 DAYS TAKE A RESTRUCTURING CHARGE OF 9 MILLION AND REPORT A DISASTROUS DROP IN SALES FOR ITS FISCAL SECOND QUARTER ENDED MARCH 31 THE COMPANY SAID IT EXPECTS REVENUE OF 14 MILLION FOR ITS FISCAL SECOND QUARTER COMPARED WITH REVENUE OF 434 MILLION A YEAR EARLIER TRADERS SAID THE GAINS POSTED BY SMALLCAP STOCKS WERE WIDESPREAD WITH NO SINGLE INDUSTRY GROUP STEPPING INTO A PRONOUNCED LEADERSHIP ROLE BUT DESPITE THE ACROSSTHEBOARD GAINS WHICH OFTEN SIGNAL A STRONG BASE FOR FURTHER INCREASES TRADERS SAID THERE IS STILL WIDESPREAD UNCERTAINTY ABOUT THE MARKET'S DIRECTION THERE'S BEEN A TREMENDOUS AMOUNT OF BUYING INTEREST YESTERDAY SAID JERRY MULLINS HEAD OF OVERTHECOUNTER TRADING AT DEAN WITTER REYNOLDS INC NEVERTHELESS I STILL SEE THE MARKET GOING LOWER MR MULLINS SAID NOT TOMORROW OR MONDAY BUT WITHIN THE NEXT COUPLE OF WEEKS IT WILL GO A LOT LOWER THE TONE OF THE SMALLCAP MARKET IN GENERAL IS IMPROVED SAID JIM THOMAS VICE PRESIDENT OF EQUITY TRADING AT DAVENPORT & CO BUT HE CAUTIONED THAT SMALLERCOMPANY STOCKS ARE STILL SWINGING WITH THE BOND MARKET AND THAT ANOTHER SURGE IN RATES LIKELY WOULD TAKE A SEVERE TOLL ON THE SMALLCAP MARKET GIVEN THE FRENETIC PACE OF TRADING IN RECENT SESSIONS IT WAS A PRETTY QUIET DAY MR THOMAS SAID THE PLUNGE IN LONGTERM INTEREST RATES LAST YEAR WAS WIDELY SEEN AS THE KEY FACTOR BEHIND THE STEADY RISE IN STOCK PRICES WHEN LOWER RATES MANIFESTED THEMSELVES IN A STRONGER ECONOMY ECONOMIC GROWTH BECAME THE DRIVING FORCE BUT FOLLOWING THE RECENT RISE IN BOTH SHORTTERM AND LONGTERM INTEREST RATES WHICH MIGHT BE A TEMPORARY SPIKE OR LASTING TREND TRADERS AND ANALYSTS SAY THE MARKET'S FOCUS HAS QUICKLY RETURNED TO INTEREST RATES YOU'VE GOT TO WATCH INTEREST RATES WARNED BRETT DISCHER VICE PRESIDENT OF EQUITY TRADING AT DAIN BOSWORTH IN TRYING TO FIGURE OUT WHICH WAY THE STOCK MARKET IS HEADED MR DISCHER SAID INVESTORS HAVE TO ASK THEMSELVES IF LONGTERM INTEREST RATES ARE MORE THAN 7 AS THEY CURRENTLY ARE IS THAT ENOUGH TO LURE PEOPLE BACK INTO THE FIXEDINCOME MARKET FROM EQUITIES SO FAR IT DOESN'T LOOK LIKE IT THE NEXT SEVERAL WEEKS LIKELY WILL SEE INVESTORS RESPONDING TO THE FLOOD OF FIRSTQUARTER EARNINGS REPORTS GIVEN THE MARKET'S CURRENT SENSITIVITY TO RATES IT WILL BE A VERY UNFORGIVING MARKET WHEN IT COMES TO JUDGING COMPANY EARNINGS MR DISCHER SAID UNLESS STOCKS MEET OR BEAT EXPECTATIONS THE MARKET WILL DEAL WITH YOU ACCORDINGLY 9404080108 940408 TAIWAN INVESTORS AWAIT LISTINGS OF CHIP MAKERS MACRONIX TSMC SET BIDS TO TRADE THEIR STOCK AMID BOOMING INDUSTRY BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL HSINCHU TAIWAN TWO OF TAIWAN'S LEADING CHIP MAKERS ARE PLANNING TO TAKE ADVANTAGE OF STRONG INVESTOR INTEREST IN THE COUNTRY'S BOOMING SEMICONDUCTOR INDUSTRY BY LISTING THEIR SHARES THIS YEAR TAIWAN SEMICONDUCTOR MANUFACTURING CO THE COUNTRY'S LARGEST SEMICONDUCTOR MAKER IS IN THE FINAL STAGES OF APPLYING TO JOIN THE TAIWAN STOCK EXCHANGE THE COMPANY IS EXPECTED TO OFFER ABOUT 40 MILLION SHARES AROUND MIDYEAR THAT REPRESENTS 5 TO 6 OF ITS CURRENT SHARE CAPITAL MEANWHILE MACRONIX INTERNATIONAL CO A COMPANY THAT EMERGED IN THE TAIWAN SEMICONDUCTOR MARKET IN 1992 OFFERING A MORE SOPHISTICATED MIX OF PRODUCTS THAN MOST OF TAIWAN'S CHIP MAKERS IS PLANNING TO APPLY IN THE NEXT FEW WEEKS FOR THE STOCK MARKET'S FIRST LISTING AS A CATEGORY C STOCK TAIWAN'S STOCKMARKET AUTHORITIES HAVE ESTABLISHED THE CATEGORY C SHARES FOR HIGHTECHNOLOGY COMPANIES WHOSE HISTORY OF PROFITABILITY ISN'T LONG ENOUGH TO MEET REQUIREMENTS FOR LISTING AS CATEGORY A OR CATEGORY B SHARES MACRONIX'S BOARD HASN'T SET PLANS BUT ANALYSTS EXPECT THE LISTING TO BE APPROVED LATE THIS YEAR THE TWO COMPANIES ARE EXPECTED TO RECEIVE A WARM WELCOME FROM INVESTORS PARTICULARLY FOREIGN INSTITUTIONAL INVESTORS EAGER TO OBTAIN GREATER EXPOSURE TO TAIWAN'S CHIP MAKERS ALTHOUGH SEMICONDUCTORS ARE REGARDED AS THE STRONGEST SEGMENT OF TAIWAN'S HUGE HIGHTECH INDUSTRIAL SECTOR ONLY ONE OF THE COUNTRY'S SEVEN CHIP MAKERS UNITED MICROELECTRONICS CORPIS LISTED INVESTORS SEEKING TO TAKE WIDER ADVANTAGE OF THE INDUSTRY'S RAPID GROWTH HAVE BEEN BUYING SHARES IN THE PACKAGERS AND TESTERS OF INTEGRATED CIRCUITS OR ICS DEMAND FOR TSMC AND MACRONIX IS GOING TO BE VERY STRONG ASSUMING THE MARKET DOESN'T TANK RIGHT AT THE TIME THEY LIST SAYS JONATHAN M ROSS TAIWAN COUNTRY MANAGER FOR HG ASIA SECURITIES TAIWAN LTD THE PROSPECTS FOR TAIWAN IC MANUFACTURERS ARE OUTSTANDING TAIWAN'S OUTPUT OF SEMICONDUCTORS LAST YEAR PLACED IT FIFTH IN THE GLOBAL INDUSTRY BEHIND THE US JAPAN SOUTH KOREA AND GERMANY ACCORDING TO THE TAIWAN GOVERNMENT'S ELECTRONICS RESEARCH SERVICE ORGANIZATION TAIWANESE CHIP PRODUCTION LAST YEAR WAS VALUED AT 181 BILLION UP 62 FROM 1992 THE GLOBAL INDUSTRY GREW AT A 28 RATE MOST IMPORTANT FOR THE TAIWAN INDUSTRY'S PROSPECTS IS THAT THE LOCAL MANUFACTURERS HAVE SCOPE TO INCREASE THEIR SALES AT HOME AT PRESENT LOCAL MANUFACTURERS MEET LESS THAN ONETHIRD OF DOMESTIC DEMAND THE REST IS IMPORTED TAIWAN'S CHIP MAKERS ARE CONCENTRATED HERE IN THE HSINCHU SCIENCEBASED INDUSTRIAL PARK POPULARLY CALLED TAIWAN'S SILICON VALLEY AMID PICTURESQUE LANDSCAPING COMPANIES CHURN OUT MILLIONS OF CHIPS A YEAR FOR AN ARRAY OF FUNCTIONS MEMORY DEVICES FOR PERSONAL COMPUTERS TELECOMMUNICATIONS ICS SEMICONDUCTORS FOR VIDEO GAMES AND OTHERS TSMC PLAYS A KEY ROLE IN THE TAIWAN INDUSTRY ITS TWO SEMICONDUCTOR FACTORIES LAST YEAR PRODUCED 122 BILLION TAIWANESE DOLLARS US4627 MILLION ACCORDING TO WEDNESDAY'S EXCHANGE RATE IN NEW YORK IN SALES ABOUT ONEQUARTER OF THE INDUSTRY'S OUTPUT BUT TSMC DOESN'T SELL ANY PRODUCTS OF ITS OWN ALL OF ITS OUTPUT IS FOR WHAT THE INDUSTRY CALLS FOUNDRY SERVICES OTHER COMPANIES BRING THEIR CHIP DESIGNS TO TSMC TO BE PRODUCED AT ITS FACTORIES DONALD W BROOKS TSMC'S PRESIDENT SAYS FOUNDRY OPERATIONS REPRESENT A GROWING PORTION OF THE SEMICONDUCTOR INDUSTRY'S OUTPUT BECAUSE MORE SMALL COMPANIES ARE EMERGING THAT DESIGN CHIPS BUT DON'T HAVE THEIR OWN WAFERFABRICATION PLANTS OR WAFER FABS IF YOU LOOK AT THE INDUSTRY YOU SEE THAT FABLESS COMPANIES ARE BECOMING A GREATER AND GREATER PERCENTAGE MR BROOKS SAYS THEY BASICALLY LOOK TO US IN ADDITION TSMC PRODUCES ICS FOR LARGE CHIP MAKERS FACING CAPACITY SHORTAGES AT THEIR FACILITIES CHIP COMPANIES HAVE HISTORICALLY UNDERINVESTED AND I THINK THERE WILL BE CAPITAL SHORTAGES FOR THE NEXT FEW YEARS THAT BODE WELL FOR TSMC MR BROOKS SAYS MANY INDUSTRY EXECUTIVES EXPECT SEMICONDUCTOR DEMAND TO DWARF CAPACITY IN TAIWAN UNTIL LATE IN THE DECADE TSMC WHICH BEGAN MAKING CHIPS IN 1988 IS BUILDING ITS THIRD WAFER FAB AT AN ESTIMATED COST OF NT20 BILLION WITH OUTPUT SCHEDULED TO BEGIN LATE NEXT YEAR MR BROOKS FORECASTS TSMC'S SALES AT MORE THAN NT16 BILLION THIS YEAR BUT DECLINES TO OFFER A PROFIT FORECAST MICHAEL HUNG A TECHNOLOGY ANALYST WITH JARDINE FLEMING SECURITIES LTD IN TAIWAN SAYS TSMC EARNED NT39 BILLION LAST YEAR AND HE PROJECTS EARNINGS THIS YEAR OF NT52 BILLION MACRONIX IS A MUCH SMALLER AND YOUNGER COMPANY HAVING BEGUN PRODUCTION IN 1992 IN 1993 THE FIRST YEAR IN WHICH IT HAD A PROFIT THE COMPANY EARNED NT480 MILLION ON SALES OF NT39 BILLION MIIN WU MACRONIX'S PRESIDENT FORECASTS EARNINGS THIS YEAR OF NT14 BILLION ON SALES OF NT61 BILLION MACRONIX ALSO IS PLANNING TO BUILD A SECOND FACTORY MR WU SAYS THE NEW PLANT WILL COST ABOUT NT12 BILLION WITH GROUND BREAKING SCHEDULED FOR 1996 MACRONIX RECENTLY HAS GARNERED MORE ATTENTION THAN TSMC BECAUSE IT IS SEEKING THE FIRST CATEGORY C SHARE LISTING WHICH INVESTORS ALREADY ARE CALLING TECHNOLOGY STOCKS ALTHOUGH TAIWAN'S SECURITIES AND EXCHANGE COMMISSION SAYS IT WILL USE LOOSER GUIDELINES REGARDING PROFITABILITY FOR APPROVING THE CATEGORY C SHARES IT ALSO WILL IMPOSE SOME STRICTER RULES THE C SHARES WILL BECOME A POOL OF HIGHEARNINGSGROWTH COMPANIES AND WILL BE VERY POPULAR SAYS MR HUNG OF JARDINE FLEMING 9404080107 940408 STIFF PRICE WAR LIKELY TO HURT INSURERS' RESULTS AFTER QUAKES AND STORMS INVESTORS HAD HOPED FOR RISE IN PREMIUMS BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NATURAL DISASTERS WILL HAMMER PROPERTY AND CASUALTY INSURERS' FIRSTQUARTER EARNINGS BUT SOME OF THE PUNY RESULTS WILL BE THE COMPANIES' OWN FAULT THEY'RE WAGING A PRICE WAR LARGELY DUE TO THE CALIFORNIA EARTHQUAKES AND BRUTAL WINTER STORMS THE INSURERS' OPERATING EARNINGS ARE EXPECTED TO DROP 40 ON AVERAGE FROM THE FIRST QUARTER OF 1993 SAID THOMAS CHOLNOKY AN ANALYST WITH GOLDMAN SACHS BUT INVESTORS WILL FIND SOME OF THE MOST DISHEARTENING NEWS ON THE TOP LINE PREMIUM RATES ARE EXPECTED TO RISE MINIMALLY FROM THE YEAREARLIER PERIOD AND SIGNIFICANT PRICE INCREASES ARE UNLIKELY THIS YEAR ANALYSTS SAID THE FIRSTQUARTER CATASTROPHES WERE BAD ENOUGH TO MESS UP THE EARNINGS BUT NOT BAD ENOUGH TO TURN THE CYCLE SAID RONALD FRANK SENIOR INSURANCE ANALYST AT SMITH BARNEY SHEARSON WITH PRICE COMPETITION STILL RAGING JEFFREY COHEN AN ANALYST AT SG WARBURG SAID INSURERS WILL CONTINUE TO BOUNCE AROUND AT A LEVEL WHERE MOST COMPANIES ARE NOT ALL THAT PROFITABLE AMONG INSURERS HARDEST HIT BY THE DISASTERS IS ALLSTATE CORP WHICH IS 801OWNED BY SEARS ROEBUCK & CO ON MARCH 21 ALLSTATE SAID ITS FIRSTQUARTER EARTHQUAKE AND STORM LOSSES WOULD TOTAL 750 MILLION AS A RESULT THE INSURER ESTIMATED A 30CENTASHARE OPERATING LOSS FOR THE QUARTER ENDING MARCH 31 AND A NET LOSS INCLUDING REALIZED CAPITAL GAINS OF 15 CENTS A SHARE ALLSTATE EARNED 61 CENTS A SHARE IN OPERATING PROFIT A YEAR EARLIER AND 75 CENTS IN NET PROFIT ON REVENUE OF 512 BILLION AT AETNA LIFE & CASUALTY CO HARTFORD CONN THE EARTHQUAKE AND STORMS CAUSED AN ESTIMATED AFTERTAX LOSS OF 120 MILLION COMBINED WITH FLAT OR SLIGHTLY LOWER PREMIUM RATES ANALYSTS EXPECT FIRSTQUARTER OPERATING EARNINGS TO FALL 62 TO 40 CENTS A SHARE FROM 106 A YEAR EARLIER ON REVENUE OF 429 BILLION MANY INSURERS SUCH AS AETNA ARE CUTTING OPERATING COSTS TO BOOST RESULTS BUT THE INDUSTRY'S FORTUNES WON'T IMPROVE SIGNIFICANTLY UNTIL INSURERS RAISE PRICES ANALYSTS SAID ALAN ZIMMERMANN AN ANALYST WITH PRUDENTIAL SECURITIES EXPECTS FIRSTQUARTER PREMIUM REVENUE TO RUN ABOUT 6 AHEAD OF THE YEAREARLIER PERIOD BROKERS SAID CATASTROPHE PROPERTY RATES IN DISASTERPRONE REGIONS ARE JUMPING 25 AND SOME SPECIALTY INSURANCE RATES ARE SURGING BUT MR ZIMMERMANN SAID MUCH OF THE 6 INCREASE REPRESENTS NEW BUSINESS CREATED BY AN EXPANDING ECONOMY NOT PRICE INCREASES THE COMPETITION DOESN'T ALLOW THEM TO ARBITRARILY RAISE RATES SAID JOHN DEITCHMAN A CASUALTY INSURANCE EXPERT WHO IS A DIRECTOR OF JOHNSON & HIGGINS AN INSURANCE BROKERAGE HOUSE THERE ARE STILL NEW PLAYERS COMING IN HE SAID INCLUDING EUROPEAN COMPANIES ADDS MR FRANK IT'S JUST NOT A MARKET THAT'S GOING TO SUPPORT KNOCKTHECOVEROFFTHEBALL PREMIUM GROWTH RATES IN A JANUARY SURVEY BY SG WARBURG 47 OF THE AGENTS AND BROKERS WHO RESPONDED SAID RENEWAL PREMIUMS IN STANDARD COMMERCIAL LINES ARE LOWER THAN A YEAR AGO WHILE JUST 22 SAID THEY'RE HIGHER THAT COMPARES WITH 41 AND 28 RESPECTIVELY IN JULY 1993 ANY SIGNIFICANT IMPROVEMENT IN PRICING STILL SEEMS SOME TIME OFF WARBURG'S MR COHEN SAID THE GOOD NEWS MR COHEN SAID IS THAT THESE STOCKS ARE LOWER THAN THEY WERE IN 1993 NONETHELESS HE RECOMMENDS THAT INVESTORS UNDERWEIGHT PROPERTY AND CASUALTY COMPANIES IN THEIR PORTFOLIOS INDUSTRY FUNDAMENTALS ARE NEITHER IMPROVING NOR DETERIORATING FAST ENOUGH TO ATTRACT INVESTORS HE SAID EVER SINCE HURRICANE ANDREW LEFT BEHIND 165 BILLION IN PAID CLAIMS IN AUGUST 1992 INVESTORS HAVE ANTICIPATED A TURN IN THE PRICING CYCLE THAT HAD REDUCED SOME BUSINESS INSURANCE COSTS UP TO 40 IN THE LAST SIX YEARS AFTER ANDREW THEY BID UP PRICES OF PROPERTY AND CASUALTY INSURERS ON THE ASSUMPTION THE LARGE LOSSES WOULD BRING THE INDUSTRY BACK TO ITS SENSES AND END THE AGGRESSIVE PRICE CUTTING WHEN RATES DIDN'T RISE THE STOCK PRICES RETREATED WHAT WILL IT TAKE TO GET THE MARKET TO TURN IN GENERAL ANALYSTS DON'T BELIEVE PRICES WILL SPIKE UNLESS CAPACITY SHRINKS WHAT COULD CAUSE THAT TO HAPPEN GOLDMAN SACH'S MR CHOLNOKY SEES THREE SCENARIOS UNDER WHICH THE INDUSTRY'S 1818 BILLION SURPLUS WOULD SHRINK ANOTHER HURRICANE THE SIZE OF ANDREW BUT UNACCOMPANIED BY BULL MARKETS THAT ALLOWED INSURERS TO OFFSET LOSSES WITH PROFITS FROM BOND AND STOCK SALES A MAJOR CORRECTION IN THE FINANCIAL MARKETS THAT WOULD REDUCE THE VALUE OF INVESTED ASSETS AND A REALIZATION THAT THE INDUSTRY'S LOSS RESERVES ARE UNDERSTATED TO SOME EXTENT THE INSURERS' OPERATING EARNINGS HAVE BEEN HELPED BY RISING INTEREST RATES INSURERS MOSTLY STUFF THEIR PORTFOLIOS WITH BONDS AND RECENT PURCHASES CARRY HIGHER COUPONS THAN DO MANY BONDS BOUGHT LAST YEAR COUPON PAYMENTS AND ANY STOCK DIVIDENDS COUNT AS OPERATING INCOME ON THE OTHER HAND INSURERS WILL SUFFER CAPITAL LOSSES IF THEY SELL BONDS PAYING LESS INTEREST THAN THE GOING RATE INSURERS UNDER PRESSURE TO PAY OUT BIG CATASTROPHE CLAIMS MAY HAVE NO CHOICE BUT TO TAKE THOSE LOSSES ANALYSTS SAID 9404080106 940408 CANADIAN PRIMARY STEEL OUTPUT OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 267488 METRIC TONS IN THE WEEK ENDED APRIL 2 A 13 INCREASE FROM 237667 TONS THE PREVIOUS WEEK BUT A 7 DECLINE FROM 287729 TONS A YEAR EARLIER STATISTICS CANADA SAID A METRIC TON IS EQUAL TO 220462 POUNDS 9404080105 940408 ENTERPRISE FRANCHISEE LAWSUIT SEEKS 1 BILLION FROM SOUTHLAND OPERATOR OF 7ELEVEN STORES IS ACCUSED OF FRAUD BREACH OF CONTRACT BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL SOUTHLAND CORP THE BELEAGUERED DALLAS FRANCHISER OF 7ELEVEN CONVENIENCE STORES HAS YET ANOTHER FIGHT ON ITS HANDS NINE INDIVIDUALS THIS WEEK ASKED A FEDERAL COURT IN CHICAGO TO CERTIFY A CLASSACTION LAWSUIT SEEKING MORE THAN 1 BILLION AGAINST SOUTHLAND AND ITS OWNERS THE SUIT ALLEGES FRAUD BREACH OF CONTRACT AND OTHER MISDEEDS BY THE FRANCHISER IT IS POTENTIALLY THE LARGEST IN A FLURRY OF LEGAL BATTLES BETWEEN FRANCHISEES AND SOUTHLAND WHICH OVERSEES MORE THAN 14000 STORES WORLDWIDE THE FRANCHISER WAS HIT LAST AUGUST WITH A MAJOR FRANCHISEE SUIT IN A CALIFORNIA STATE COURT OVER ALLEGED VENDOR KICKBACKS FORCED 24HOUR OPERATION AND OTHER MATTERS SOUTHLAND ALSO FACES A LAWSUIT BY THE OWNERS OF SOME OF THE EIGHT FRANCHISES IT MOVED TO TERMINATE IN JANUARY FOR ALLEGED PRICEGOUGING AFTER THE LOS ANGELES EARTHQUAKE THE COMPANY DENIES WRONGDOING IN THOSE DISPUTES NOW THE NEW CHICAGO PLAINTIFFS CLAIM TO BE ACTING ON BEHALF OF MORE THAN 2000 CURRENT AND FORMER 7ELEVEN FRANCHISEES IN THE US ACCORDING TO THE SUIT SOUTHLAND HAS HURT THE CHAIN BY SLASHING ADVERTISING REMODELING AND OTHER SUPPORT SERVICES SINCE 1987 ROBERT A ZARCO A MIAMI ATTORNEY DEVELOPED THE SUIT SOUTHLAND WHICH HAS BEEN CONTROLLED BY JAPANESE RETAILER ITOYOKADO CO SINCE 1991 ISSUED A STATEMENT CALLING THE SUIT PREPOSTEROUS AND UNFOUNDED CLARK J MATTHEWS SOUTHLAND'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IT'S ABSOLUTELY MINDBOGGLING THAT ANYONE COULD CONCLUDE AFTER REVIEWING THE FACTS THAT SOUTHLAND HASN'T SUPPORTED 7ELEVEN FRANCHISEES DAVID J KAUFMANN A NEW YORK LAWYER FOR SOUTHLAND CALLED THE ALLEGATIONS IN THE SUIT FALSE RECKLESS AND OUTRAGEOUS AND SAID THIS SUIT SMACKS OF ATTORNEY OPPORTUNISM WHICH WILL BE PROPERLY DEALT WITH IT APPEARS THAT MR ZARCO WHIPPED UP FRANCHISEE INTEREST IN THIS SUIT RATHER THAN THE OTHER WAY AROUND HE ADDED I FIND IT STUNNING THAT FOR A PURPORTED CLASS ACTION MR ZARCO COULD COME UP WITH ONLY NINE NAMED PLAINTIFFS MR ZARCO WHO WAS SAID TO BE TRAVELING COULDN'T BE REACHED FOR COMMENT SOME LAWYERS WITH NO CONNECTIONS TO THE CASE SAID THE LAWSUIT MAY BE A LONG SHOT MARIO L HERMAN A FRANCHISEE ATTORNEY IN WASHINGTON SAID CLASS ACTIONS AGAINST FRANCHISERS ARE GENERALLY DIFFICULT TO GET CERTIFIED UNLIKE SHAREHOLDERS WHO ALL OWN IDENTICAL SECURITIES FRANCHISEES MAY HAVE DIFFERING CONTRACTS MAY HAVE RECEIVED DIFFERENT PROMISES AND OFTEN OPERATE UNDER DISPARATE CIRCUMSTANCES THE 7ELEVEN CHAIN INCLUDES MORE THAN 3000 FRANCHISED UNITS IN THE US WHERE SOUTHLAND IS THE BIGGEST OPERATOR OF CONVENIENCE STORES FRANCHISEES OPERATE 7ELEVEN STORES PROVIDED BY SOUTHLAND THE COMPANY SERVES AS LANDLORD AND EVEN KEEPS THE BOOKS IN RETURN SOUTHLAND COLLECTS A HEFTY SHARE SOMETIMES AS HIGH AS 58 OF EACH STORE'S GROSS PROFIT AS DEFINED BY THE CHAIN THIS IS MUCH MORE THAN MOST OTHER FRANCHISERS GET BUT FEW OTHERS PROMISE OR PROVIDE SO MUCH SERVICE FRANCHISING SPECIALISTS SAY THE INITIAL FRANCHISE FEES ARE ALSO COMPARATIVELY LOW ONE REASON THE CHAIN OFTEN APPEALS TO FRANCHISE BUYERS WITH LITTLE CASH ACCORDING TO THE CHICAGO SUIT HOWEVER SOUTHLAND HAS CONTINUED COLLECTING ITS USUAL CHARGES EVEN AFTER CUTTING BACK SERVICES TO FRANCHISEES THE ALLEGED CUTS BEGAN AFTER A 49 BILLION LEVERAGED BUYOUT OF SOUTHLAND IN 1987 SOUTHLAND WAS FINANCIALLY DEVASTATED BY THE BUYOUT THE SUIT SAYS BURDENED WITH DEBT THE COMPANY WAS NO LONGER ABLE TO SATISFY ITS OBLIGATIONS TO FRANCHISEES THE SUIT CHARGES IT SAYS THE FRANCHISER SLASHED CAPITAL SPENDING FOR EXAMPLE SUCH SPENDING FELL 72 IN 1988 THE SUIT SAYS ALSO IN 1988 THE FRANCHISER CEASED ALL ADVERTISING THE SUIT ADDS THE COMPANY SAYS ADVERTISING STOPPED ONLY FOR A SHORT WHILE AND IT SAYS CAPITALSPENDING NUMBERS AREN'T A FAIR MEASURE OF FRANCHISEE SUPPORT INDEED IT SAYS IT STOPPED BUILDING NEW STORES IN ORDER TO FOCUS ON SUPPORTING EXISTING ONES THE PHYSICAL DETERIORATION OF THEIR STORES AND THE LACK OF ADVERTISING HURT FRANCHISEES WHOSE SALES AND PROFITS FELL THE SUIT SAYS MEANWHILE IT SAYS SOUTHLAND CONCEALED ITS FINANCIAL CONDITION FROM FRANCHISES IN PART BY MAKING FALSE AND MISLEADING STATEMENTS ABOUT THREE YEARS AFTER THE LEVERAGED BUYOUT THE COMPANY VOLUNTARILY SOUGHT PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE IT EMERGED FROM COURT PROTECTION EARLY IN 1991 CENTRAL TO THE COMPANY'S SURVIVAL WAS THE PURCHASE OF A CONTROLLING STAKE NOW 64 BY COMPANIES OWNED BY ITOYOKADO IN ALLEGING PROBLEMS CAUSED BY A LEVERAGED BUYOUT THE SOUTHLAND SUIT RESEMBLES A SUIT BY A GROUP OF FRANCHISEES AGAINST POSTAL INSTANT PRESS INC IN STATE COURT IN CALIFORNIA PIP DENIES WRONGDOING THE SOUTHLAND SUIT IS MUCH MORE AMBITIOUS HOWEVER SEEKING STATUS AS A CLASS ACTION ON BEHALF OF THOUSANDS EVEN THOUGH THERE ARE ONLY NINE PLAINTIFFS IN ITS STATEMENT SOUTHLAND SAID IT HAS VIGOROUSLY SUPPORTED FRANCHISEES THE COMPANY SAID THAT THROUGHOUT THE BUYOUT AND SUBSEQUENT EVENTS IT HONORED ALL CONTRACTUAL OBLIGATIONS TO FRANCHISEES THE COMPANY ADDED THAT DURING THE LAST FIVE YEARS IT HAS PROVIDED FRANCHISEES WITH MORE THAN 85 MILLION OF INCOME AND INCENTIVES ABOVE AND BEYOND THAT WHICH WE ARE OBLIGATED TO PROVIDE SOUTHLAND SAID IT NOW ENSURES THAT SOME FRANCHISEES WILL EARN A SPECIFIED MINIMUM GROSS INCOME THE COMPANY SAID IT ALSO NOW GIVES 1000 A MONTH IN EXTRA FINANCIAL ASSISTANCE TO SOME STORES SOUTHLAND SAID FRANCHISEES' ANNUAL NET INCOME ROUTINELY REPORTED TO THE FRANCHISER WAS NEARLY 17 HIGHER IN 1993 THAN IN 1987 WHEN THE ALLEGED PROBLEMS BEGAN THE COMPANY SAID 7ELEVEN STORES CONTINUE TO OUTPERFORM THE INDUSTRY AVERAGE THE COMPANY SAID IT IS IN THE MIDST OF ITS MOSTEXTENSIVE REMODELING PROGRAM EVER MORE THAN 1500 STORES HAVE BEEN REMODELED SINCE LATE 1992 WITH 1000 MORE TO BE REMODELED THIS YEAR IT ADDED ABOUT HALF OF THE STORES BEING REMODELED ARE OPERATED BY FRANCHISEES IT SAID 9404080104 940408 WHO'S NEWS JAMES RIVER CHAIRMAN TO RETIRE ARLINGTON VA JAMES RIVER CORP'S TOP EXECUTIVE SAID HE PLANS TO RETIRE FROM THE COMPANY IN EARLY 1996 AND EXPECTS TO NAME A SUCCESSOR BY LATE NEXT YEAR ROBERT C WILLIAMS 64 YEARS OLD CHIEF EXECUTIVE OFFICER CHAIRMAN AND PRESIDENT WAS A COFOUNDER OF JAMES RIVER IN 1969 HE ALSO SERVES AS CHIEF OPERATING OFFICER ALTHOUGH THE COMPANY'S OFFICIAL RETIREMENT AGE IS 65 MR WILLIAMS' CONTRACT HAS BEEN EXTENDED BEYOND THAT DATE A SPOKESMAN FOR JAMES RIVER SAID THE COMPANY EXPECTS TO APPOINT A NEW PRESIDENT AND CHIEF OPERATING OFFICER BY LATE 1995 JAMES RIVER A MAKER OF PAPER PRODUCTS FOR CONSUMER PRODUCTS FOOD AND CONSUMER PACKAGING AND COMMUNICATIONS HAD SALES OF 47 BILLION IN 1993 9404080103 940408 PIPELINE FIRMS SIGN PURCHASE SETTLEMENTS WITH GAS COMPANY HOUSTON PIPELINE SUBSIDIARIES OF COASTAL CORP TENNECO INC TRANSCO ENERGY CO AND OCCIDENTAL PETROLEUM CORP'S MIDCON CORP UNIT SAID THEY SIGNED SETTLEMENT AGREEMENTS WITH DAKOTA GASIFICATION CO AND THE DEPARTMENT OF ENERGY OVER GASPURCHASE AGREEMENTS THE PIPELINE COMPANIES SAID THE SETTLEMENTS ARE RELATED TO THEIR RESPECTIVE CONTRACTS SIGNED IN 1982 TO PURCHASE GAS FROM THE GREAT PLAINS GASIFICATION PLANT THE PLANT PRODUCES SYNTHETIC NATURAL GAS THE COMPANIES SAID THE DISPUTES WERE OVER THE PRICE TO BE PAID BY THE PIPELINES FOR THE SYNTHETIC GAS AND THE QUANTITY OF GAS TO BE TAKEN BY THE PIPELINES THE PIPELINE COMPANIES SAID THE AGREEMENTS AMEND THE PRICE AND QUANTITY PROVISIONS OF THE EXISTING GASPURCHASE AGREEMENTS BETWEEN THE PIPELINES AND DAKOTA THE AGREEMENTS CALL FOR MARKETBASED PRICING WITH MONTHLY DEMAND CHARGES OF 6 MILLION PAYABLE FOR SEVEN YEARS THE AGREEMENT IS SUBJECT TO APPROVAL BY THE FEDERAL ENERGY REGULATORY COMMISSION UNTIL APPROVAL EACH PIPELINE WILL PAY 370 PER MILLION BRITISH THERMAL UNITS FOR GAS DELIVERED FROM THE PLANT 9404080102 940408 HEARD ON THE STREET WOOLWORTH STOCK APPEALS TO BARGAIN HUNTERS DESPITE THE BIG RETAILER'S MOUND OF TROUBLES BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL WOOLWORTH'S TROUBLES ARE PILED HIGH BUT GUTSY BARGAIN HUNTERS FIND THE STOCK NOW AT AN EIGHTYEAR LOW IRRESISTIBLE MICHAEL PRICE THE VETERAN MONEY MANAGER WHO RUNS MUTUAL SHARES FUND IN SHORT HILLS NJ BOUGHT THREE MILLION WOOLWORTH SHARES LAST MONTH AFTER THE COMPANY SAID IT WAS INVESTIGATING POSSIBLE ACCOUNTING IRREGULARITIES AND THE STOCK PLUNGED BELOW 15 YESTERDAY WOOLWORTH CLOSED AT 14 7/8 UP 1 IN THE PAST TWO YEARS THE STOCK HAD COME DOWN FROM 36 INTO THE LOW 20S MR PRICE SAYS HE AND HIS ANALYSTS HAD TAKEN A CLOSE LOOK AT THE SHARES A FEW MONTHS AGO WE PASSED AT 21 HE SAYS BUT AT 15 OR LESS HE SAYS THE STOCK IS JUST TOO CHEAP TO RESIST STATISTICALLY THE BIG RETAILER IS A FLAMING BARGAIN THE STOCK SELLS FOR ONLY ABOUT 20 OF THE COMPANY'S PERSHARE SALES THE DIVIDEND YIELD IS ABOVE 75 WHICH MEANS THE DIVIDEND COULD BE CHOPPED IN HALF AND THE YIELD WOULD STILL BE ABOVE AVERAGE THE STOCK PRICE IS ONLY SEVEN TIMES AVERAGE ANNUAL EARNINGS FOR THE FIVE YEARS 19881992 EARNINGS TURNED NEGATIVE RECENTLY AND ARE UNCERTAIN UNTIL THE ACCOUNTING QUESTION IS RESOLVED TO BE SURE PROBLEMS ARE NUMEROUS GROWTH IS SLOW AT WOOLWORTH DISCOUNT STORES AND KINNEY SHOE STORES FOOT LOCKER LONG THE COMPANY'S HOTTEST CHAIN HAS COOLED AS CONSUMERS ESPECIALLY TEENAGERS TURNED AWAY FROM ATHLETIC SHOES WOOLWORTH ANNOUNCED LAST FALL THAT IT WOULD CLOSE A SLEW OF UNPROFITABLE STORES MAINLY WOOLWORTH AND KINNEY IT ALSO SOLD MOST OF ITS WOOLCO STORES IN CANADA TO WALMART STORES THOSE BOLD MOVES WERE GREETED FAVORABLY BY INVESTORS BUT THEN CAME THE RECENT ANNOUNCEMENT THAT THE COMPANY WAS INVESTIGATING POSSIBLE ACCOUNTING IRREGULARITIES THE STOCK PLUNGED 25 ON THE NEWS WOOLWORTH'S CHAIRMAN WILLIAM K LAVIN AND ITS CHIEF FINANCIAL OFFICER WILLIAM T YOUNG RELINQUISHED THEIR DUTIES THIS MONTH PENDING THE OUTCOME OF AN INTERNAL INVESTIGATION WORD OF INSIDER SALES BY FOUR EXECUTIVES INCLUDING MR YOUNG HAS FURTHER DAMPED INVESTOR CONFIDENCE THE MINUTE ACCOUNTING QUESTIONS COME UP I MOVE TO THE SIDELINES SAYS JOHN B FIELDS A PORTFOLIO MANAGER WITH DELAWARE MANAGEMENT CO IN PHILADELPHIA HE WAS SELLING SOME WOOLWORTH SHARES BEFORE THE FLAP AROSE AND SHED THE REST ON THE NEWS THE STRATEGY WOOLWORTH EXECUTED IN THE 1980S WAS AN EXCITING ONE HE SAYS THEY TOOK CASH FROM THE OLD FIVEANDDIME STORES AND INVESTED IT IN SPECIALTY STORES FOOT LOCKER GOT SO SUCCESSFUL AND SO BIG THAT AS IT MATURED THEY HAD GREAT DIFFICULTY IN REPLACING THAT GROWTH THIS WHOLE SHIFT IN FASHION TREND AWAY FROM SNEAKERS TO THE GRUNGE LOOK HAS HAD A MATERIAL IMPACT ON THE BUSINESS JEFFREY FEINER ANALYST AT SALOMON BROTHERS DOWNGRADED WOOLWORTH TO HOLD FROM BUY THIS WEEK EVEN AT AROUND 14 HE SAID THE STOCK'S MULTIPLE WOULD BE 10 TIMES HIS REVISED PROFIT ESTIMATE OF 140 A SHARE FOR THE FISCAL YEAR ENDING NEXT JANUARY THAT'S A FAIR VALUATION CONSIDERING THE UNCERTAINTY CREATED BY THE ACCOUNTING PROBE HE SAYS WOOLWORTH HAS SAID IT EXPECTS TO RESTATE EARNINGS FOR THREE FISCAL QUARTERS ENDED IN APRIL JULY AND OCTOBER 1993 THOUGH IT ADDED SOMEWHAT MYSTERIOUSLY THAT FULLYEAR RESULTS WON'T BE AFFECTED IT DIDN'T RULE OUT A POSSIBLE RESTATEMENT FOR THE PREVIOUS FISCAL YEAR BUT ALL THIS DOESN'T DAUNT PETER HOLT A FORMER INVESTMENT BANKER WHO HAS JUST LAUNCHED HIS OWN HEDGE FUND HOLT SPECIAL SITUATIONS FUND ONE OF THE FIRST THINGS HE DID WAS TO BUY WOOLWORTH AT ABOUT 13 I LIKE TO TRY TO GET IN CLOSE TO THE BOTTOM SAYS MR HOLT WHO ADDS THAT FOR HIS OWN ACCOUNT HE BOUGHT COMPAQ AT 24 CHRYSLER AT 10 3/4 AND CITICORP AT 9 1/2 THOSE STOCKS HAVE ALL SOARED WOOLWORTH HAS A GREAT BRAND NAME IN GERMANY AND TREMENDOUS GROWTH OPPORTUNITIES OVERSEAS MR HOLT SAYS IF IMPROPRIETIES ARE UNCOVERED THE STOCK COULD SUFFER A LITTLE MORE BUT IT HAS FALLEN SO FAR ALREADY THAT HE DEEMS THE REMAINING RISK SMALL WOOLWORTH'S MAIN PROBLEM AS EDWARD A WELLER AN ANALYST WITH ROBERTSON STEPHENS SEES IT IS THAT MANY OF ITS STORES ARE MALL PARASITES THAT DEPEND ON WALKIN TRAFFIC AS THE POPULATION GETS OLDER AND BUSIER FEWER AND FEWER PEOPLE WILL BE CRUISING THE MALL THE WAY THEY DID FIVE 10 OR 15 YEARS AGO BUT MR WELLER ALLOWS THAT WHEN THE STOCK IS DOWN IT'S A LOT MORE INTERESTING WOOLWORTH HAS A LOT OF REAL COMPETITIVE BUSINESSES HE SAYS HE ESPECIALLY LIKES WORLD FOOT LOCKER OUTLETS WHICH ARE LARGER VERSIONS OF FOOT LOCKER STORES WITH BETTER DISPLAY OF SHOES AND WIDER SELECTION OF ATHLETIC CLOTHING STOCKS TEND TO BE MOST ATTRACTIVE HE SAYS WHEN THE NEWS IS UGLIEST 9404080101 940408 LEGAL BEAT THE BUSINESS OF LAW HISPANICS PUSH HARD FOR CABRANES TO BECOME BLACKMUN'S SUCCESSOR BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL JOSE CABRANES CHIEF JUDGE FOR THE US DISTRICT COURT IN NEW HAVEN CONN HAS BECOME THE FOCAL POINT OF AN AGGRESSIVE LOBBYING CAMPAIGN BY HISPANIC GROUPS THAT ARE EAGER TO SEE ONE OF THEIR OWN ON THE US SUPREME COURT THE GROUPS ARE PRESSING PRESIDENT CLINTON TO NOMINATE THE 53YEAROLD PUERTO RICANBORN JURIST TO FILL THE VACANCY CREATED BY THIS WEEK'S RETIREMENT OF SUPREME COURT JUSTICE HARRY BLACKMUN WE THINK FAIRNESS DICTATES THAT IT IS OUR TURN SAID WILFREDO CARABALLO THE PRESIDENT OF THE 20000MEMBER HISPANIC NATIONAL BAR ASSOCIATION LAST APRIL THE GROUP PREPARED A LIST OF SEVEN POTENTIAL HISPANIC SUPREME COURT NOMINEES FOR THE WHITE HOUSE INCLUDING JUDGE CABRANES AND YESTERDAY IT REITERATED ITS SUPPORT FOR A HISPANIC NOMINEE IN AN OPEN LETTER TO THE PRESIDENT THE GROUP ALSO IS SENDING OUT NOTICES TO HISPANIC INTEREST GROUPS ACROSS THE COUNTRY URGING THEM TO GET INVOLVED IN THE PROCESS BY WRITING MEMBERS OF CONGRESS OR THE ADMINISTRATION MEANWHILE THE CONGRESSIONAL HISPANIC CAUCUS URGED THE PRESIDENT TO NAME THE FIRSTEVER HISPANIC NOMINEE IN A LETTER RELEASED A FEW HOURS AFTER JUSTICE BLACKMUN'S RESIGNATION LATINO LAW STUDENTS AT SUCH PLACES AS HARVARD LAW SCHOOL ARE ORGANIZING A LETTERWRITING CAMPAIGN HISPANIC GROUPS SAY THEY AREN'T WEDDED TO JUDGE CABRANES THOUGH HE HAS EMERGED AS THE LEADING HISPANIC CANDIDATE AMONG THOSE CONSIDERED IN THE EARLY RUNNING BY ADMINISTRATION OFFICIALS RETIRING SENATE MAJORITY LEADER GEORGE MITCHELL 60 HAS BEEN MENTIONED AS THE CANDIDATE HAVING THE INSIDE TRACK INSIDE THE WHITE HOUSE THOUGH OFFICIALS SAY HIS SELECTION IS HARDLY A FOREGONE CONCLUSION JUDGE CABRANES LIKE THE PRESIDENT AND FIRST LADY IS A GRADUATE OF YALE LAW SCHOOL HE WAS GENERAL COUNSEL OF YALE UNIVERSITY BEFORE BEING NOMINATED TO THE FEDERAL TRIAL COURT IN CONNECTICUT BY PRESIDENT CARTER IN 1979 AND HE HAS BEEN DESCRIBED AS THE FIRST PUERTO RICANBORN CITIZEN TO HOLD A FEDERAL JUDGESHIP ON THE MAINLAND THE JUDGE WHO HASN'T BEEN INVOLVED IN THE LOBBYING EFFORT DECLINED TO COMMENT ON IT OVER THE YEARS JUDGE CABRANES THE SON OF A FEDERAL PROBATION OFFICER HAS EARNED A REPUTATION AS A METICULOUS JURIST WHO PAYS ATTENTION TO THE INDIVIDUAL CONCERNS OF LITIGANTS IN COURT PROCEEDINGS HE HAS BEEN AN OUTSPOKEN CRITIC OF FEDERAL SENTENCING GUIDELINES FOR EXAMPLE FEELING THAT THEY ENCROACH ON THE ROLE OF JUDGES TO TAILOR PUNISHMENTS TO INDIVIDUAL FEDERAL OFFENSES AT THE SAME TIME HE HAS BEEN ACTIVELY CONCERNED ABOUT THE GROWING CONGESTION IN THE FEDERAL COURTS AND THE ABUSES THAT RESULT HE WAS ONE OF FIVE FEDERAL JUDGES WHO SERVED ON A SPECIAL COMMITTEE APPOINTED BY CHIEF JUSTICE WILLIAM H REHNQUIST SEVERAL YEARS AGO TO STUDY WAYS TO REFORM THE FEDERAL JUDICIARY AMONG JUDGE CABRANES'S MOST NOTED CASES INVOLVED HIS ISSUING A COURT ORDER PUTTING SEVERE RESTRICTIONS ON THE ABILITY OF A PERSON TO USE THE COURTS FOR FURTHER LITIGATION WHO HAD REPEATEDLY FILED FRIVOLOUS LAWSUITS I DON'T BELIEVE HE IS OUT CONSTANTLY TRYING TO MAKE NEW LAW BUT HE IS WILLING TO SEIZE THE OCCASIONS WHEN NEW LAW IS NECESSARY SAID KATY WELLS A LAWYER AT WILMER CUTLER & PICKERING AND ONE OF JUDGE CABRANES'S FORMER LAW CLERKS HIS APPROACH HAS NOW EARNED HIM CONSIDERATION AS A HIGHCOURT NOMINEE IN BOTH REPUBLICAN AND DEMOCRATIC ADMINISTRATIONS IN 1991 HE WAS INCLUDED ON MANY LISTS OF POSSIBLE SUCCESSORS TO RETIRING JUSTICE THURGOOD MARSHALL MR CARABALLO A PROFESSOR AT SETON HALL UNIVERSITY LAW SCHOOL SAYS HIS GROUP FEELS THAT THERE ARE A NUMBER OF QUALIFIED HISPANIC CANDIDATES THOUGH JUDGE CABRANES HAS EMERGED AS THE LEADING CONTENDER AMONG OTHER POSSIBLE JUDGES THE GROUP HAS IDENTIFIED JOSEPH BACA OF THE NEW MEXICO SUPREME COURT DAN MORALES ATTORNEY GENERAL OF TEXAS AND CRUZ REYNOSO A UNIVERSITY OF CALIFORNIA AT LOS ANGELES LAW PROFESSOR AND FORMER CALIFORNIA SUPREME COURT JUSTICE WHILE HISPANICS CONSTITUTE MORE THAN 10 OF THE US POPULATION THEY MAKE UP LESS THAN 5 OF ALL FEDERAL JUDGES PRESIDENT CLINTON RECENTLY NOMINATED SEVERAL HISPANIC JURISTS TO THE FEDERAL BENCH THESE INCLUDE RICARDO URBINA A DISTRICT OF COLUMBIA SUPERIOR COURT JUDGE FOR A SEAT ON WASHINGTON'S FEDERAL TRIAL BENCH AND FORMER TEXAS SUPREME COURT JUDGE FORTUNATO BENAVIDES FOR THE FIFTH US CIRCUIT COURT OF APPEALS MICHAEL DIAMOND A TOP PARTNER AT NEW YORK'S SKADDEN ARPS SLATE MEAGHER & FLOM WILL JOIN REVLON GROUP'S PARENT MACANDREWS & FORBES HOLDINGS INC AS AN EXECUTIVE VICE PRESIDENT OF ITS NEWLY FORMED MULTIMEDIA UNIT MR DIAMOND 51 SAID HE HAS ALWAYS BEEN INTERESTED IN GETTING INTO BUSINESS AS OPPOSED TO JUST PURELY PRACTICING LAW IN HIS NEW POSITION HE EXPECTS TO HELP RUN THE UNIT CALLED NEW WORLD COMMUNICATIONS GROUP AND ANTICIPATES MAKING SOME ACQUISITIONS OF TELEVISION STATIONS HE SAYS MR DIAMOND WHO LIVES IN LOS ANGELES WAS ON A SHORT LIST OF CANDIDATES TO SUCCEED PETER MULLEN AS SKADDEN'S EXECUTIVE PARTNER LAST DECEMBER THE FIRM ANNOUNCED THE POST WOULD GO TO ROBERT SHEEHAN A PARTNER IN THE NEW YORK OFFICE AND A DARKHORSE CONTENDER MR DIAMOND SAID HE WAS DISAPPOINTED AT THE TIME BUT DIDN'T IMMEDIATELY DECIDE TO LEAVE I VIEWED THE EXECUTIVE PARTNERSHIP AS AN OPPORTUNITY TO BE A BUSINESSMAN INSTEAD OF A LAWYER HE SAID IT WAS AN OPPORTUNITY THAT DIDN'T PAN OUT SO I KEPT LOOKING FOR OTHER OPPORTUNITIES EARLE YAFFA MANAGING DIRECTOR OF SKADDEN SAID HE EXPECTED MR DIAMOND A MERGERS AND ACQUISITIONS SPECIALIST TO CONTINUE TO WORK CLOSELY WITH THE FIRM MACANDREWS HAS BEEN A VERY IMPORTANT CLIENT AND ANYTHING WE CAN DO TO CONTINUE TO ESTABLISH GOOD RELATIONS WITH THEM IS GOING TO HELP US AMY STEVENS CONTRIBUTED TO THIS ARTICLE 9404080100 940408 YOUR MONEY MATTERS WEEKEND REPORT BEWARE OF PORTFOLIO RISKS AS YOU SEEK REWARDS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL HOW MUCH WOULD YOU HAVE TO LOSE BEFORE YOU LOST IT AFTER THE MARKETS' ROLLERCOASTER RIDE DURING THE PAST FEW WEEKS A LOT OF PEOPLE PROBABLY WISH THEY HAD ANSWERED THAT QUESTION BEFORE THEY PUT TOGETHER THEIR INVESTMENT PORTFOLIOS CASHING IN YOUR INVESTMENTS AT THE DEPTH OF A BEAR MARKET AND THEREBY LOCKING IN YOUR LOSSES RANKS AMONG THE WORST MISTAKES AN INVESTOR CAN MAKE YET TOO MANY PEOPLE END UP DOING JUST THAT BECAUSE THEY DON'T GIVE MORE THAN PASSING CONSIDERATION TO HOW MUCH THEY COULD STAND TO LOSE IN A MARKET DOWNTURN BY FOCUSING ALMOST EXCLUSIVELY ON HOW MUCH THEY WOULD LIKE TO MAKE THEY WIND UP OWNING A PORTFOLIO THAT'S TOO RISKY FOR THEIR TASTES WHEN WE HAVE A NEW CLIENT ONE OF THE FIRST THINGS WE DO IS HAVE THEM THINK ABOUT THE WORSTCASE SCENARIO THAT THEY COULD LIVE WITH SAYS KENNETH GREGORY A SAN FRANCISCO INVESTMENT ADVISER AND EDITOR OF THE NOLOAD FUND ANALYST A MONTHLY NEWSLETTER IF YOU KNOW HOW BADLY BLOODIED YOUR PORTFOLIO CAN BE HE SAYS AT LEAST YOU'RE NOT CAUGHT OFF GUARD IT MAKES IT EASIER TO LIVE WITH WITH THE STOCK AND BOND MARKETS DOWN SHARPLY FROM THEIR PEAKS AND WITH THE POTENTIAL FOR FURTHER LOSSES IN THE WEEKS AHEAD THIS IS A PARTICULARLY GOOD TIME TO THINK ABOUT YOUR TOLERANCE FOR PAIN INVESTMENT ADVISERS SAY TO ILLUSTRATE THE SORT OF LOSSES YOU COULD SUFFER THE WALL STREET JOURNAL ASKED T ROWE PRICE ASSOCIATES THE BIG BALTIMOREBASED MUTUALFUND MANAGER TO CALCULATE THE PERFORMANCE FROM YEAREND 1945 THROUGH YEAREND 1993 FOR PORTFOLIOS THAT CONTAIN VARIOUS AMOUNTS OF STOCKS AND BONDS THE FUND COMPANY LOOKED AT FIVE PORTFOLIOS INCLUDING AN ALLSTOCK PORTFOLIO AN ALLBOND PORTFOLIO AND THREE PORTFOLIOS THAT COMBINE STOCKS AND BONDS THE COMBINED PORTFOLIOS INCLUDE A GROWTH PORTFOLIO WITH 75 STOCKS AND 25 BONDS A BALANCED PORTFOLIO OF 50 STOCKS AND 50 BONDS AND AN INCOMEORIENTED PORTFOLIO WITH 25 STOCKS AND 75 BONDS IBBOTSON ASSOCIATES' DATA FOR INTERMEDIATETERM GOVERNMENT BONDS WERE USED AS A PROXY FOR BONDS WHILE THE STANDARD & POOR'S 500STOCK INDEX WAS USED TO REPRESENT STOCKS WHILE STOCKS ARE CLEARLY MUCH MORE SUSCEPTIBLE TO SUBSTANTIAL SHORTTERM LOSSES THAN BONDS HISTORY SUGGESTS THAT EVEN THE MOST SKITTISH INVESTORS SHOULD PROBABLY OWN AT LEAST SOME STOCKS SAYS STEVEN NORWITZ A T ROWE PRICE VICE PRESIDENT PEOPLE WHO TEND TO BE STRICTLY BOND INVESTORS CAN IMPROVE THEIR RETURNS BY INCREASING THEIR STOCK POSITION MR NORWITZ SAYS AND THEY CAN DO THAT WITHOUT REALLY INCREASING THE RISK OF THEIR PORTFOLIO STOCKS AND BONDS SOMETIMES MOVE TOGETHER AS THEY HAVE IN RECENT WEEKS BUT THAT'S NOT ALWAYS THE CASE WHEN BONDS DECLINE IN PRICE STOCKS MAY PROVIDE OFFSETTING GAINS AS A RESULT ADDING A SMALL POSITION IN STOCKS TO A BOND PORTFOLIO WILL TEND TO BOLSTER RETURNS WITHOUT INCREASING RISK FOR INSTANCE COMPARE THE PERFORMANCE OF THE ALLBOND PORTFOLIO WITH THAT OF THE PORTFOLIO COMPOSED OF 75 BONDS AND 25 STOCKS IN THE POSTWORLD WAR II PERIOD THERE HAS BEEN VIRTUALLY NO DIFFERENCE IN THE RISK LEVEL OF THESE TWO PORTFOLIOS BOTH PORTFOLIOS HAVE SUFFERED FIVE MODERATE DOWN YEARS BETWEEN THE END OF 1945 AND THE END OF LAST YEAR AND THERE WAS ONLY A SLIGHT DIFFERENCE IN THE SIZE OF DROPS IN THOSE YEARS BUT THE DIFFERENCE IN RETURN WAS SUBSTANTIAL AN ALLBOND PORTFOLIO WOULD HAVE RETURNED 59 A YEAR IN THE POSTWAR PERIOD COMPARED WITH 76 FOR A PORTFOLIO THAT COMPRISES 25 STOCKS AND 75 BONDS THESE ARE TOTAL RETURN FIGURES REFLECTING BOTH BOND AND STOCK PRICE CHANGES AND THE REINVESTMENT OF INTEREST AND DIVIDENDS IF YOU MOVE EVEN FURTHER INTO STOCKS HOWEVER THE POTENTIAL LOSSES START RISING SIGNIFICANTLY WITH A 50 STOCK POSITION THE WORST DOWN YEAR WAS MINUS 10 IN 1974 MR NORWITZ SAYS THAT'S NOT BAD GIVEN THE INCREASED RETURN YOU GET IT'S A GOOD ARGUMENT FOR BALANCED FUNDS THE MUTUAL FUNDS THAT BUY A MIX OF STOCKS AND BONDS LOOKING AT LOSSES FOR JUST A SINGLE CALENDAR YEAR CAN BE MISLEADING HOWEVER BECAUSE OCCASIONALLY A PORTFOLIO WILL GENERATE BACKTOBACK DOWN YEARS FOR INSTANCE THE ALLSTOCK PORTFOLIO PLUNGED 147 IN 1973 AND AN ADDITIONAL 265 IN 1974 FOR A CUMULATIVE LOSS OF MORE THAN 37 THIS CUMULATIVE LOSS IS LESS THAN THE SUM OF THE TWO DOWN YEARS BECAUSE OF THE WAY THE PROCESS OF COMPOUNDING WORKS THE 197374 BEAR MARKET WAS ALSO BAD NEWS FOR THE GROWTH PORTFOLIO WITH ITS COMBINATION OF 75 STOCKS AND 25 BONDS AND THE BALANCED PORTFOLIO WHICH SPLITS ITS MONEY EQUALLY BETWEEN STOCKS AND BONDS THE GROWTH PORTFOLIO TUMBLED 265 DURING THE TWOYEAR STRETCH WHILE THE BALANCED PORTFOLIO FELL 149 INVESTORS CAN HOWEVER SOFTEN THE BLOW OF A STOCKMARKET SELLOFF BY ENSURING THAT THEY OWN A BROAD ARRAY OF STOCKS SAYS WILLIAM JOHN MIKUS A MANAGING DIRECTOR WITH FINANCIAL DESIGN A LOS ANGELES INVESTMENT ADVISER WHAT YOU SHOULD DO IS DIVERSIFY YOUR PORTFOLIO FURTHER THAN JUST S&P 500 STOCKS MR MIKUS SAYS YOU WANT TO DIVERSIFY INTO SMALLCAP STOCKS AND MIDCAP STOCKS AND YOU ALSO WANT TO DIVERSIFY INTERNATIONALLY THROUGH DIVERSIFICATION YOU CAN REDUCE YOUR RISK AND INCREASE YOUR RETURNS IT'S THE CLOSEST THING TO A FREE LUNCH YOU WILL EVER FIND IN STRUCTURING A PORTFOLIO WHAT SHOULD YOU DO IF YOUR PORTFOLIO IS TOO HEAVILY INVESTED IN THE STOCK MARKET GIVEN YOUR CONCERN ABOUT LARGE SHORTTERM LOSSES SELLING STOCKS NOW MAY SEEM LIKE A POOR MOVE GIVEN THAT THE STOCK MARKET HAS ALREADY FALLEN SUBSTANTIALLY BUT BECAUSE BONDS HAVE ALSO BEEN HIT HARD SWAPPING OUT OF STOCKS AND INTO BONDS MAY NOT BE SO FOOLISH MR MIKUS SAYS IF YOUR PORTFOLIO DOES NOT REFLECT YOUR RISK TOLERANCE YOU SHOULD REBALANCE IT AND REBALANCE IT NOW HE SAYS PEOPLE SHOULD LOOK AT THESE THINGS IN A DISCIPLINED MANNER MR MIKUS ADDS THOUGH THAT YOU SHOULDN'T DECIDE THAT YOUR TOLERANCE FOR RISK IS LOWER JUST BECAUSE STOCK PRICES HAVE FALLEN IF YOU DO BOOST YOUR BOND HOLDINGS BE PICKY ABOUT THE SORT OF BONDS YOU BUY INVESTMENT ADVISERS SAY IN THE POSTWAR PERIOD INTERMEDIATETERM GOVERNMENT BONDS LOST MONEY IN FIVE CALENDAR YEARS THE POOREST YEAR WAS 1958 WHEN THESE BONDS DIPPED 13 BY CONTRAST LONGTERM GOVERNMENT BONDS SUFFERED THROUGH 16 DOWN YEARS BETWEEN YEAREND 1945 AND YEAREND 1993 INCLUDING A 92 DRUBBING IN 1967 IN FACT IN THE POSTWAR PERIOD LONGTERM GOVERNMENT BONDS HAVE SUFFERED MORE DOWN YEARS THAN STOCKS WHICH HAVE HAD 11 LOSING YEARS PEOPLE ALWAYS VIEW STOCKS AS BEING THE MORE VOLATILE INVESTMENT SAYS T ROWE PRICE'S MR NORWITZ BUT YOU CAN HAVE PRETTY SIGNIFICANT LOSSES WITH LONGTERM BONDS RESULTS FOR PORTFOLIOS HOLDING VARYING AMOUNTS OF STOCKS AND BONDS & POOR'S 500STOCK INDEX AND INTERMEDIATETERM GOVERNMENT BONDS 9404080099 940408 WORK & FAMILY BY SUE SHELLENBARGER MORE PEOPLE WITH QUESTIONABLE BACKGROUNDS ARE APPLYING FOR CHILDCARE JOBS SECURITY AGENCIES REPORT A RISE IN CANDIDATES WHO FLUNK BACKGROUND CHECKS PAUL MINOR PRESIDENT OF AMERICAN INTERNATIONAL SECURITY FAIRFAX VA SAYS THAT WHILE MOST ARE VERY UPSTANDING PEOPLE APPLICANTS WHO GIVE FALSE INFORMATION OR HAVE CRIMINAL BACKGROUNDS HAVE RISEN TO 8 TO 9 OF THE 5000 WOULDBE NANNIES HE CHECKS OUT EACH YEAR COMPARED WITH 5 ABOUT TWO YEARS AGO AMONG THE CRIMES UNCOVERED ARE DRIVING ON A SUSPENDED LICENSE USING A FALSE SOCIAL SECURITY NUMBER SHOPLIFTING AND MAYHEM LYNN PETERSON OWNER OF PFC INFORMATION SERVICES OAKLAND CALIF SAYS APPLICANTS WITH SERIOUS CREDIT PROBLEMS OR CONVICTIONS FOR OFFENSES LIKE PETTY THEFT DRUG POSSESSION OR ASSAULT HAVE RISEN TO 5 OF THE 900 CANDIDATES SHE CHECKS EACH YEAR FROM 1 TO 2 TWO YEARS AGO A DUALCAREER COUPLE WITH A TODDLER RECENTLY RAN A NEWSPAPER AD FOR A NANNY AND HIRED A WOMAN WHO HAD GOOD REFERENCES MS PETERSON SAYS BUT A BACKGROUND CHECK SHOWED THE WOMAN HAD BEEN CONVICTED OF FELONY ASSAULT FOR ATTACKING FOUR PEOPLE WITH A BROKEN BEER BOTTLE ANOTHER FAMILY CHANGED TRAVEL PLANS WHEN MS PETERSON FOUND THE NANNY THEY JUST HIRED HAD FIVE ALIASES AND SPENT TWO YEARS IN PRISON FOR ASSAULT WITH A DEADLY WEAPON JOB SHORTAGES HAVE DRAWN PEOPLE WHO HAVE NO BUSINESS TAKING CARE OF CHILDREN INTO CHILD CARE MS PETERSON SAYS THEY THINK TAKING CARE OF CHILDREN IS EASY AND THEY ARE DESPERATE FOR WORK MR MINOR ADDS THAT SOME PEOPLE SEE A LIVEIN NANNY JOB AS A GOOD WAY TO GET AWAY FROM BIG PROBLEMS TO GO UNDERGROUND WITH SUPPORT FROM A PROTECTIVE FAMILY ALSO MORE FAMILIES ARE SUBJECTING APPLICANTS TO BACKGROUND CHECKS SAYS WENDY SACHS PRESIDENT OF THE INTERNATIONAL NANNY ASSOCIATION PEOPLE WITH FALSE RESUMES TEND TO APPLY TO FAMILIES RATHER THAN AGENCIES HOPING TO AVOID SCRUTINY IN AN INCIDENT THAT IS LIKELY TO BE REPEATED AT OTHER COMPANIES PERKINELMER HAS FIRED A FIELDSERVICE WORKER FOR REFUSING TO MOVE HIS OFFICE INTO HIS HOME A TREND TOWARD FORCING WORKERS TO TELECOMMUTE IS RAISING NEW MANAGEMENT ISSUES LIKE MANY COMPANIES THE NORWALK CONN MAKER OF SCIENTIFIC AND LABORATORY EQUIPMENT IS CLOSING ABOUT 35 SALES AND SERVICE OFFICES AND MOVING SEVERAL HUNDRED EMPLOYEES INTO HOME OFFICES FURNISHED WITH COMPANY SUPPLIES FURNITURE AND EQUIPMENT ONE GOAL IS TO GET THE SALES AND SERVICE FORCE CLOSER TO THE CUSTOMER SAYS SPOKESWOMAN CAROL BLASZCZYNSKI BUT WAYNE WOLFINGER AN EIGHTYEAR SALES AND SERVICE REPRESENTATIVE IN ALASKA WAS BOTHERED BY THE COMPANY'S REFUSAL TO COMPENSATE HIM FOR SPACE INSURANCE COSTS AND OTHER EXPENSES WHILE MR WOLFINGER SAYS HE WOULDN'T MIND WORKING AT HOME COMPANY OFFICIALS WEREN'T ACKNOWLEDGING THAT THIS WAS AN INCONVENIENCE FOR ME AND A HUGE BENEFIT FOR THEM HE SAYS PERKINELMER REFUSED A COMPROMISE OFFERED BY MR WOLFINGER TO STORE SPARE PARTS IN HIS HOME IN RETURN FOR PART OF THE 120 A MONTH THE COMPANY WAS PLANNING TO PAY FOR WAREHOUSE SPACE HE MADE SOME DEMANDS THAT WE JUST COULDN'T LIVE WITH MS BLASZCZYNSKI SAYS HE WAS A GOOD EMPLOYEE WE WOULD HAVE LOVED TO HAVE IT WORK OUT BUT PERKINELMER POLICY DICTATED THAT WE WERE NOT GOING TO PAY ANY EMPLOYEES TO WORK OUT OF THEIR HOMES SHE SAYS THE COMPANY FIRED MR WOLFINGER IN DECEMBER AND PLANS FOR THE TIME BEING TO SERVICE ALASKA CUSTOMERS FROM SEATTLE GIL GORDON A MONMOUTH JUNCTION NJ MANAGEMENT CONSULTANT WHO DISCLOSED THE INCIDENT IN HIS MONTHLY TELECOMMUTING NEWSLETTER CALLS THE COMPANY'S DECISION POLICY MAKING RUN AMOK HE SAYS IT SACRIFICED A GOOD EMPLOYEE WITHOUT REGARD FOR THE POSSIBILITY THAT CUSTOMER SERVICE MIGHT SUFFER AS MORE COMPANIES MOVE EMPLOYEES INTO HOME OFFICES THE POTENTIAL FOR THIS IS GOING TO INCREASE EMPLOYERS PREPARE A HEAVY DOSE OF SCIENCE AND TECHNOLOGY FOR TAKE OUR DAUGHTERS TO WORK DAY AMID GROWING ATTENTION TO THE SCARCITY OF WOMEN IN SCIENTIFIC AND TECHNICAL FIELDS EMPLOYERS ARE RACING TO SHOW OFF THEIR LAB AND SCIENTIFIC GEAR TO NINE TO 15YEAROLD GIRLS ON THE SECOND ANNUAL MS FOUNDATIONSPONSORED EVENT APRIL 28 AFTER A PITCH FOR SCIENCE CAREERS BY ASTRONAUT KATHY THORNTON AT THE JOHNSON SPACE CENTER IN HOUSTON AN ANTICIPATED 100 GIRLS WILL EXPERIENCE WEIGHTLESSNESS AND A METEOR CRASH IN A SIMULATED SPACE SHUTTLE THEN TRY OUT EQUIPMENT IN THE ROBOTICS LAB AT SCHERINGPLOUGH 250 GIRLS WILL TOUR ITS NEW 1300SCIENTIST RESEARCH FACILITY AND JOHNSON & JOHNSON'S ORTHOMCNEIL PHARMACEUTICAL UNIT PLANS LOTS OF HANDSON SCIENTIFIC EXPERIMENTS FOR 350 GIRLS INCLUDING CREATING A PRODUCT AND FIGURING OUT HOW TO TEST NAME PACKAGE AND MARKET IT A SPOKESWOMAN SAYS CORPORATE SPONSORS FOR THE EVENT WHICH DREW HEAVY PUBLICITY LAST YEAR MORE THAN TRIPLED OTHER PLANS TRANSATLANTIC VIDEOCONFERENCES BETWEEN GIRLS AT BP AMERICA IN CLEVELAND AND BRITISH PETROLEUM THE PARENT IN LONDON AND AT COOPERS & LYBRAND BRAINTEASERS VIA A COMPUTER BULLETIN BOARD LINKING GIRLS AT ITS 100 US OFFICES EMPLOYER LACTATIONSUPPORT PROGRAMS SIGNIFICANTLY INCREASE BREASTFEEDING AMONG WORKING MOTHERS REDUCING ILLNESSES IN THEIR INFANTS A STUDY BY RONA COHEN AN ASSISTANT PROFESSOR OF NURSING AT THE UNIVERSITY OF CALIFORNIA LOS ANGELES SHOWS THAT PROVIDING SPACE EQUIPMENT AND A LACTATION CONSULTANT ENABLED 75 OF PARTICIPANTS TO BREASTFEED INFANTS SIX MONTHS OR MORE CHILD CARE TOPS THE LIST OF SPECIAL HELP SOUGHT BY EMPLOYEES WHO TRANSFER RUNZHEIMER INTERNATIONAL SAYS WITH 16 ASKING FOR IT COMPARED WITH 14 SEEKING HELP IN FINDING SCHOOLS AND 13 IN FINDING A SPOUSE A NEW JOB 9404080097 940408 INFORMAL POLL SHOWS NASDAQ POLICY UPSETS MORE THAN 32/64 OF TRADERS BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOME SUPPOSEDLY SAVVY WALL STREET TRADERS ARE REALLY SCRATCHING THEIR HEADS AND NOT BECAUSE OF THE STOCK MARKET'S RECENT GYRATIONS THIS WEEK THE NASDAQ STOCK MARKET STILL KNOWN TO MANY AS THE OVERTHECOUNTER MARKET QUIETLY INTRODUCED A NEW WAY TO REPORT STOCK PRICES IT NOW USES INCREMENTS OF 1/64 OF A DOLLAR OR 15625 CENTS ALL STOCK TRADES ARE BEING ROUNDED TO WHAT NASDAQ DESCRIBES AS THE NEAREST 64TH FRACTION RATHER THAN THE NEAREST 1/8 FRACTION STAY WITH US NOW WHAT IT MEANS IS THAT A PRICE FOR A MAJOR STOCK TRADED THROUGH NASDAQ CAN NOW BE REPORTED AS SAY 40 17/64 OR A NOTCH HIGHER AT 40 9/32 THAT IS MORE PRECISE SAYS NASDAQ THAN THE TRADITIONAL SYSTEM OF PRICING ALL BUT THE SMALLEST STOCKS IN INCREMENTS NO SMALLER THAN 1/8 OF A DOLLAR OR 125 CENTS BUT THE NEW FRACTIONS INFURIATE SOME VETERAN TRADERS IT'S JUST POINTLESS SAYS EE BUZZY GEDULD PRESIDENT OF HERZOG HEINE GEDULD INC HE SAYS PROBLEMS ARE CAUSED WHEN YOU HAVE 150000 SHARES FOR SALE AND ALL OF A SUDDEN SOMEONE'S TRADING IN 64THS IT'S NOT THE REAL WORLD ANOTHER NASDAQ TRADER PETER DA PUZZO OF CANTOR FITZGERALD INC GAVE CHARTS TO HIS TRADERS THAT CONVERT 1/64 1/32 AND SO ON TO CENTS I'M NOT USED TO DEALING IN 64THS NOR ARE MOST PEOPLE HE SAYS NASDAQ HAS GOTTEN CALLS FROM ANGRY BROKERS NASDAQ EXECUTIVE JOHN WALL SAYS REGRETTABLY WE DIDN'T REALLY GIVE BROKERS A GREAT DEAL OF FOREWARNING BUT HE ADDS THAT THERE ARE NO PLANS TO BACK OFF THE NEW SYSTEM AFTER ALL HE SAYS TRADERS HAVE ALREADY BEEN TRADING IN SMALLER FRACTIONS BUT ROUNDING THE REPORTED PRICE TO THE NEAREST 1/8 THE NEW YORK STOCK EXCHANGE HASN'T SWITCHED TO SMALLER FRACTIONS BUT THE ISSUE IS UNDER REVIEW SAYS A SPOKESMAN PETER COOLIDGE A SENIOR NASDAQ STOCK TRADER AT KIDDER PEABODY & CO AGREES THAT THE CHANGE PROVIDES FULLER DISCLOSURE TO THE PUBLIC THOUGH HE CONCEDES THAT DOING THE CALCULATIONS IS SOMETHING WE'LL HAVE TO GET USED TO TO INVESTORS' LONG LIST OF MARKET COMPLEXITIES MR COOLIDGE SAYS THEY WILL HAVE TO LEARN WHAT 64THS ARE 9404080096 940408 LEISURE & ARTS ON SPORTS HOCH STILL HOPING FOR THAT GREEN JACKET BY FREDERICK C KLEIN AUGUSTA GA THE MASTERS GOLF TOURNAMENT PLAYED HERE IN THE PLACE WHERE SPRING BEGINS GOT STARTED YESTERDAY AND IT'S WELL WORTH THE WINNING BESIDES THE USUAL LARGE CHECK AND SIDE GOODIES THE CHAMPION RECEIVES A GREEN JACKET HIS NAME ON THE SAME TROPHY AS JACK ARNIE BEN AND SAM AND A BIT OF WHATEVER IMMORTALITY HIS SPORT CAN OFFER THOSE THINGS HAVE CROSSED SCOTT HOCH'S MIND AROUND THIS TIME FOR THE PAST FIVE YEARS TO BE AS CLOSE AS I WAS AND NOT TO HAVE WON WELL IT'S NOT A GOOD FEELING HE SAYS THE WORST PART IS THAT I KNOW I SHOULD HAVE GOLF FANS KNOW WHAT HOCH IS TALKING ABOUT BUT FOR OTHERS A BRIEF HISTORY LESSON IS IN ORDER THE YEAR WAS 1989 AND HOCH A 33YEAROLD PRO THERETOFORE LITTLE DISTINGUISHABLE FROM THE REST OF THE POLYESTER PACK STOOD OVER A 2 1/2FOOT PAR PUTT ON THE FIRST HOLE OF A PLAYOFF WITH THE BRITISHER NICK FALDO THE MASTERS CROWN WOULD BE HOCH'S IF HE MADE IT HIS FIRST MAJOR CHAMPIONSHIP BUT SHOCKINGLY HE MISSED AND A FALDO BIRDIE ON THE NEXT HOLE MADE HIM THE CHAMP INSTEAD COMPOUNDING HOCH'S EMBARRASSMENT WAS ITS IMMEDIATE AFTERMATH AS SEVERAL DOZEN JOURNALISTS ON THE SCENE POINTED OUT HIS NAME IS PRONOUNCED HOKE AS IN CHOKE IN SPORTS CHOKING DENOTES A FAILURE OF NERVE UNDER PRESSURE IT'S AN UGLY CHARGE WHICH SHOULDN'T BE MADE LIGHTLY BUT A RHYME'S A RHYME AND MANY COULDN'T RESIST I HAD TO CHECK BACK TO MAKE SURE BUT I'M PLEASED THAT I DID HERE AGAIN FOR HIS NINTH MASTERS HOCH ANSWERS THE OBVIOUS QUESTION BEFORE IT'S ASKED SURE THE LABEL BOTHERED ME BECAUSE I DIDN'T THINK IT WAS TRUE HE SAYS WHATEVER ELSE I DID OR DIDN'T DO THAT WEEK I DIDN'T CHOKE I NEVER WAS NERVOUS WHICH WAS UNUSUAL FOR ME I WISH I KNEW WHY SO I COULD BE THAT WAY AGAIN BUT TIME HAS DULLED THE BARB PEOPLE ARE GIVEN TAGS AND THEY'RE TOUGH TO GET RID OF BUT THAT'S LIFE HE SHRUGS I'M USUALLY PRETTY HAPPY WITH THE SCOTT HOCH I KNOW THAT SCOTT HOCH MAY NOT HAVE MADE THE GOLFING SPLASH OF SOME BUT HE'S EARNED A VERY NICE LIVING IN A VERY DIFFICULT SPORT WITH NO OBVIOUS PHYSICAL ADVANTAGES HIS OFFICIAL WINNINGS OF 3868696 IN 14 SEASONS THROUGH 1993 PLACED HIM 26TH ON THE PROFESSIONAL GOLFERS ASSOCIATION TOUR'S ALLTIME MONEY LIST DESPITE THE FACT THAT HE MISSED MUCH OF 1992 RECUPERATING FROM SHOULDER SURGERY HE ADDED TO THAT IN A BIG WAY IN FEBRUARY BY PICKING UP 198000 IN WINNING THE 90HOLE BOB HOPE CHRYSLER CLASSIC HIS FIFTH CAREER TRIUMPH IN 1986 HIS SEVENTH SEASON OUT HE WON THE PRESTIGIOUS VARDON TROPHY FOR LOW STROKE AVERAGE ON THE TOUR AT 7008 PER ROUND HE DID IT WITHOUT WINNING A TOURNAMENT TESTIFYING TO THE DIFFICULTY OF COMING IN FIRST ANYTIME AMONG WHAT PROBABLY IS THE MOST SPECIFICALLY SKILLED GROUP OF ATHLETES EXTANT WHAT HOCH DOES BEST IS MAKE DO WITH WHAT HE HAS AT 5FEET11 AND 160 POUNDS THE THINNINGHAIRED NORTH CAROLINA NATIVE CAN'T HIT THE BALL AS FAR AS MOST OF HIS FELLOW TOURISTS SO HE MUST TRY TO KEEP IT OUT OF HARM'S WAY YOU CAN STAY IN BUSINESS THAT WAY BUT IT'S TOUGH TO SHINE EXCEPT FOR THE HANDFUL OF PLAYERS WITH GREAT GAMES WINNING IS PRETTY MUCH OF A FLUKE HE ASSERTS I'LL ADMIT AS MUCH ABOUT MY WIN IN THE HOPE OF MY FIVE ROUNDS THERE I PLAYED MAYBE 2 1/2 GOOD ONES ONE OF THEM WAS FANTASTIC I SHOT A 62 AND IT PULLED ME THROUGH ON TOP BUT YOU CAN'T EXPECT 62S TOO OFTEN HOCH CERTAINLY WASN'T EXPECTING LIGHTNING TO STRIKE WHEN HE CAME HERE IN APRIL OF '89 HE GENERALLY THRIVED ON TIGHT EXACTING COURSES WHICH EXPANSIVE AUGUSTA NATIONAL IS NOT AND HAD NEVER PLACED HIGHER THAN 27TH IN FIVE PREVIOUS MASTERS APPEARANCES MOREOVER ON THE FIRST TWO DAYS HE TEED OFF AT OR NEAR THE REAR OF THE FIELD ON SPIKE AND BALLMARKED GREENS NEVERTHELESS HIS SCORES OF 69 AND 74 PUT HIM IN CONTENTION AND A ONEUNDERPAR 71 IN A RAINY THIRD ROUND WHICH HE AND OTHERS HAD TO FINISH ON SUNDAY MORNING BECAUSE OF SATURDAY RAINS KEPT HIM THERE SUNDAY TURNED OUT TO BE ONE OF THE WILDEST DAYS IN THE TOURNEY'S 57 YEARS SIX PLAYERS HELD OR TIED FOR THE LEAD AT SOME TIME OR ANOTHER AND IF NOT FOR 18THHOLE BOGEYS BEN CRENSHAW AND GREG NORMAN WOULD HAVE JOINED HOCH AND FALDO IN THE PLAYOFF SEVE BALLESTEROS MIGHT HAVE BEEN IN IT TOO IF HE HADN'T HIT A BALL INTO THE WATER ON PARTHREE 16 THE METHODICAL FALDO PLAYED BEST THAT DAY SHOOTING A 65 BUT HE HAD A THIRDROUND 77 TO OVERCOME HOCH WAS STEADIER HITTING THE FIRST 16 GREENS IN REGULATION TO STAND FOUR UNDER PAR AND WHILE HISTORY HAS FOCUSED ON THE PUTT HE MISSED ON THE FIRST PLAYOFF HOLE HE ALSO HAD A MAKABLE PUTT ON 17 THAT COULD HAVE GIVEN HIM THE TITLE THAT ONE STILL GALLS HOCH HIT HIS FIRST BAD DRIVE OF THE DAY ON THE 400YARD PAR FOUR AND HIS THREEIRON SECOND SHOT SAILED PAST THE GREEN HIS CHIP SHOT BACK UPHILL TO A TIGHT PIN PLACEMENT WAS HAILED BY SOME AS THE BEST SHOT OF THE TOURNAMENT AND LEFT HIM A FIVEFOOTER FOR PAR I'D BEEN FOOLED A COUPLE TIMES BY A SNEAKY LEFTTORIGHT BREAK FROM AROUND THAT SPOT AND TOLD MYSELF I WOULDN'T LET THAT HAPPEN AGAIN HE RECALLS I HIT MY PUTT JUST TO THE RIGHT OF THE HOLE EXACTLY THE WAY I WANTED BUT IT DIDN'T BREAK TO THIS DAY I DON'T KNOW WHY HOCH HAD ANOTHER CHANCE FOR VICTORY WITH A 15FOOT BIRDIE TRY ON 18 BUT MISSED HE AND FALDO BEGAN THEIR PLAYOFF UNDER GRAY SKIES WITH DARKNESS DESCENDING FALDO BOTCHED THE FIRST EXTRA HOLE NO 10 FOR A BOGEY HOCH WAS ON THE GREEN IN TWO ON THE 485YARD PAR FOUR AND LAGGED TO 2 1/2 FEET MAYBE A BIT LESS HE LINED UP HIS PUTT STOOD OVER IT AND BACKED OFF IT WASN'T NERVES I JUST FORGOT WHAT I WANTED TO DO HE RETREATED LOOKED AGAIN AND STROKED IT TOO FAR LEFT GOOD STROKE BAD READ HE SAYS IT WAS HIS ONLY THREEPUTT GREEN OF THE 74 HOLES HE PLAYED IN THE TOURNEY I'VE BEEN TOLD NOBODY'S EVER PUTTED THAT WELL AT AUGUSTA HE NOTES HIS PUTT BACK WAS HARDER HE MADE IT BUT IT JUST PROLONGED THINGS FALDO'S 25FOOT BIRDIE PUTT ON THE NEXT HOLE WAS THE FINISHER I THINK ABOUT THAT TOURNAMENT QUITE OFTEN HOCH SAYS IT DOESN'T EAT AT ME BUT I THINK IT'D BEEN NICE TO HAVE WON MAYBE I'LL GET A CHANCE AGAIN AND IT'LL COME OUT DIFFERENT 9404080094 940408 LAWYERS AND CLIENTS FINLEY KUMBLE'S CREDITORS LEFT WANTING BUT BANKRUPTCY PROS COLLECT THEIR FEES BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL FINLEY KUMBLE THE ONCEGIANT LAW FIRM THAT MET ITS DOOM IN 1988 IS HAUNTING ITS CREDITORS FROM BEYOND THE GRAVE BANKRUPTCY RECORDS REVEAL THAT FINLEY KUMBLE'S BREAKUP HAS ENRICHED ONLY THE PROFESSIONALS PICKING AT THE FIRM'S CARCASS SUCH AS LAWYERS TRUSTEES AND ACCOUNTANTS THEY HAVE BEEN PAID MORE THAN 37 MILLION MEANWHILE ANYONE THAT LENT THE FIRM A SIGNIFICANT SUM OF MONEY INCLUDING LEADING BANKS HASN'T RECEIVED A DIME AFTER SIX YEARS IN CHAPTER 11 BANKRUPTCYCOURT PROCEEDINGS THE DOCUMENTS SHOW THE TRUSTEE OF THE FIRM'S ESTATE COLLECTED 60 MILLION IN CASH FOR THE CREDITORS BUT SOME 48 MILLION OR 80 HAS BEEN SPENT JUST ON OPERATING AND ADMINISTERING THE BANKRUPTCY CASE THE BIGGEST CHUNK ABOUT 23 MILLION HAS GONE TO A NEW YORK LAW FIRM MILBANK TWEED HADLEY & MCCLOY WHICH REPRESENTED THE TRUSTEE NONE OF FINLEY KUMBLE'S FOUR LARGEST CREDITORS MAJOR BANKS THAT LOANED IT A TOTAL OF 85 MILLION WOULD COMMENT PUBLICLY ABOUT FEES IN THE CASE BUT PRIVATELY SOME SAY THEY ARE LIVID ONE BANK EXECUTIVE CALLED THE CASE AN ABOMINATION AND DESCRIBED THE MANAGEMENT OF THE BANKRUPTCY AS DEPLORABLE BANKRUPTCY PROFESSIONALS AND ACADEMICS ALSO RAISED CONCERNS IF CREDITORS HAVEN'T GOTTEN ANYTHING AND FEES CONSUMED MOST OF THE ESTATE YOU CAN LEGITIMATELY ASK WHETHER SOMETHING WENT WRONG HERE SAYS DOUGLAS BAIRD A BANKRUPTCY PROFESSOR AT THE UNIVERSITY OF CHICAGO LAW SCHOOL JOEL ZWEIBEL A NEW YORK BANKRUPTCY LAWYER WITH O'MELVENY & MYERS SAYS EIGHTY PERCENT SPENT ON BANKRUPTCY COSTS SEEMS TO ME VERY HIGH FOR EXAMPLE THOSE COSTS ACCOUNTED FOR LESS THAN 30 OF THE TAKE IN A LARGE LAWFIRM BANKRUPTCY FOR WHICH MR ZWEIBEL'S FIRM REPRESENTED THE TRUSTEE TO BE SURE FINLEY KUMBLE'S TRUSTEE INHERITED A MORASS UNLIKE ANYTHING THE LEGAL PROFESSION HAD SEEN FINLEY KUMBLE WAGNER HEINE UNDERBERG MANLEY MYERSON & CASEY ONCE AMERICA'S FOURTH LARGEST LAW FIRM WITH 700 ATTORNEYS WAS RIPPED APART IN 1987 BECAUSE OF EXCESSIVE DEBT AND BITTER EGO CLASHES ITS MOST INFAMOUS ALUMNUS FORMER NAME PARTNER HARVEY MYERSON LATER WENT TO JAIL FOR SWINDLING CLIENTS OF A SUCCESSOR FIRM HE FOUNDED FINLEY KUMBLE WAS PUSHED INTO BANKRUPTCY PROCEEDINGS BY THE FOUR BANK CREDITORS WITH 105 MILLION IN DEBT EXCLUDING MALPRACTICE CLAIMS IT WAS THE BIGGEST LAWFIRM BANKRUPTCY EVER PROFESSIONAL PARTNERSHIPS MAKE FOR DIFFICULT DISSOLUTION CASES BECAUSE FEDERAL BANKRUPTCY LAWS DON'T REQUIRE INDIVIDUAL PARTNERS TO AGREE TO A BANKRUPTCY PLAN EACH IS THEORETICALLY LIABLE FOR THE PARTNERSHIP'S FULL DEBT BUT THAT OBLIGATION CAN ONLY BE ENFORCED BY A CIVIL LAWSUIT THE FINLEY KUMBLE CASE WAS COMPLICATED BY PROBLEMS WITH THE FIRM'S RECORDKEEPING AND PARTNERS' CONFLICTING ACCOUNTS OF THEIR WORTH AND OBLIGATIONS FRANCIS MUSSELMAN WHO WAS COURTAPPOINTED TRUSTEE FROM 1988 UNTIL LAST MAY CRAFTED A PLAN THAT CALLED FOR THE ESTATE TO BE FUNDED LARGELY BY COLLECTIONS OF ACCOUNTS RECEIVABLES PLUS CASH CONTRIBUTIONS BY FORMER PARTNERS AS DETERMINED BY A FORMULA MOST OF THE FORMER PARTNERS SIGNED THE PLAN AND IT WAS APPROVED BY THE US BANKRUPTCY COURT IN NEW YORK IN DECEMBER 1991 MR MUSSELMAN SAYS THE COSTS WERE JUSTIFIED BECAUSE THE CASE WAS THE FIRST OF ITS KIND AND VERY COMPLICATED I HAD TO BRING TO AGREEMENT NOT ONLY ALL OF THE CREDITORS BUT 250ODD FORMER PARTNERS WHO DIDN'T GET ALONG TOGETHER WHEN TIMES WERE GOOD LET ALONE IN TIMES OF ADVERSITY THAT TOOK A LOT OF WORK HE SAYS THE ALTERNATIVE MIGHT HAVE BEEN 287 PERSONAL BANKRUPTCIES ON TOP OF THE BANKRUPTCY OF THE PARTNERSHIP HE SAYS I DO NOT APOLOGIZE AT ALL FOR ANY PART OF THE CASE I HAD ANYTHING TO DO WITH I THINK IT WAS A SMASHING SUCCESS MR MUSSELMAN THE RETIRED FORMER MANAGING PARTNER OF MILBANK TWEED BROUGHT IN HIS FIRM AT THE BEGINNING ACCORDING TO COURTAPPROVED FEE APPLICATIONS AS MANY AS 67 MILBANK LAWYERS WERE ASSIGNED TO FINLEY KUMBLE BUSINESS OVER THE COURSE OF THE CASE THE 68YEAROLD MR MUSSELMAN ADAMANTLY REJECTS ANY SUGGESTION HE WAS REPLACED BECAUSE OF THE HIGH COSTS INCURRED BY MILBANK I AGREED TO SERVE AS LIQUIDATING TRUSTEE FOR A PERIOD OF NO MORE THAN SIX MONTHS WITH ONE POSSIBLE SIXMONTH EXTENSION IF I AGREED I DID THEN I WAS FINISHED HE SAYS MR MUSSELMAN SAYS HE REDUCED HIS USUAL HOURLY RATE FRANCIS LOGAN MANAGING PARTNER OF MILBANK DEFENDS THE FIRM'S WORK AND ITS FEES WE DO THINK WE'VE DONE A GOOD JOB IN AN EXTRAORDINARILY DIFFICULT AND PRECEDENTSETTING SITUATION HE SAYS THE FIRM SAYS IT REDUCED SOME OF ITS HOURLY RATES AND WROTE OFF SOME ATTORNEY TIME MY UNDERSTANDING IS THAT THE CREDITORS COMMITTEE IS SATISFIED AND HAS APPROVED PAYMENTS TO US SAYS MR LOGAN MILBANK TWEED CONTINUES TO WORK ON SOME MINOR MATTERS RELATED TO THE CASE MR LOGAN POINTS OUT THAT SOME PEOPLE WITH CLAIMS AGAINST FINLEY KUMBLE HAVE BEEN PAID FORMER CLIENTS WHO HAVE SETTLED MALPRACTICE ALLEGATIONS AGAINST THE FIRM HAVE RECEIVED A TOTAL OF 263 MILLION AND ARE DUE TO GET ANOTHER 42 MILLION HOWEVER THESE CLAIMANTS ARE BEING COMPENSATED FROM A SEPARATE TRUST FUNDED BY FINLEY KUMBLE'S MALPRACTICE INSURERS AND THEIR CLAIMS WERE ADMINISTERED BY A SEPARATE TRUSTEE AND LAW FIRM ARTHUR CHRISTY AND HIS NEW YORK LAW FIRM CHRISTY & VIENER MR LOGAN ALSO NOTES THAT THE BANKRUPTCY ESTATE WHICH IS RESPONSIBLE FOR COMPENSATING THE MAJOR CREDITORS EXPECTS TO COLLECT ANOTHER 30 MILLION IT'S IMPORTANT TO TAKE ALL OF THE COLLECTIONS INTO ACCOUNT NOT JUST PART OF THEM HE SAYS BUT IS IT FAIR TO COMPENSATE THE PROFESSIONALS BEFORE THE CREDITORS MR MUSSELMAN SAYS THE BANKRUPTCY SYSTEM CAN ALLOW FOR NO ALTERNATIVE ADMINISTRATIVE FEES MUST BE PAID FIRST HE SAYS OTHERWISE NO CASE WOULD EVER BE ADMINISTERED MR BAIRD THE UNIVERSITY OF CHICAGO LAW PROFESSOR AGREES IF YOU ASK LAWYERS TO WAIT WITH OTHER CREDITORS TO GET A SHARE OF THE ESTATE YOU'RE BASICALLY ASKING THEM TO WORK FOR BELOW MARKET RATE HE ADDS THAT ATTORNEYS WILLING TO DO SO MIGHT NOT BE OF THE HIGHEST QUALITY AND THE CREDITORS MAY ULTIMATELY SUFFER THE FINLEY KUMBLE DOCUMENTS CONSISTING OF COURT RECORDS UPDATED WITH TRUSTEE'S RECORDS THAT HAVEN'T BEEN MADE PUBLIC INDICATE THE ESTATE HAD ABOUT 83 MILLION IN CASH AS OF DEC 31 ABOUT 13 MILLION WAS USED TO PARTIALLY COMPENSATE A GROUP OF VERY MINOR CREDITORS A COMMON PRACTICE IN SUCH CASES WITH INDIVIDUAL CLAIMS OF LESS THAN 20000 SOME SMALL TAX CREDITORS WERE ALSO PAID ALBERT TOGUT A NEW YORK ATTORNEY AT TOGUT SEGAL & SEGAL WHO REPLACED MR MUSSELMAN AS TRUSTEE SAYS HE EXPECTS TO MAKE AN INITIAL DISTRIBUTION TO MAJOR CREDITORS SOON HE DECLINED TO BE MORE SPECIFIC PAYMENTS TO THE MAJOR CREDITORS HAVE BEEN HELD UP HE SAYS BECAUSE A FEW CLAIMS AGAINST THE ESTATE HAVEN'T BEEN RESOLVED AND BECAUSE SEVERAL FORMER FINLEY KUMBLE PARTNERS HAVE DEFAULTED MR TOGUT FORMER CHAIRMAN OF THE FINLEY KUMBLE CREDITORS COMMITTEE AND HIS FIRM HAVE BEEN PAID ABOUT 2 MILLION FOR TRUSTEE WORK A SPOKESMAN FOR ONE MAJOR CREDITOR THE FEDERAL DEPOSIT INSURANCE CORP THE SUCCESSOR TO ONE OF FINLEY KUMBLE'S LENDERS SAYS THE AGENCY HAD HOPED TO GET ABOUT 80 CENTS ON THE DOLLAR OF ITS 104 MILLION CLAIM NOW IT LOOKS LIKE WE WON'T GET MORE THAN 20 CENTS AND WE'RE LOOKING TO ABOUT THE YEAR 2000 BEFORE THIS BANKRUPTCY COULD BE COMPLETELY WRAPPED UP HE SAYS 9404080093 940408 BUSINESS BRIEF DETROIT EDISON CO NUCLEAR POWER PLANT REPAIRS MAY COST UP TO 50 MILLION DETROIT EDISON CO SAID IT WOULD COST 35 MILLION TO 50 MILLION TO REPAIR ITS FERMI 2 NUCLEAR POWER PLANT BUT NO DECISION HAS BEEN MADE TO REPAIR ALL OR PART OF THE FACILITY EDISON SAID IT HAS FOUND CRACKS IN ADDITIONAL TURBINE BLADES AT THE PLANT THE NEWPORT MICH COMPANY HAS BEEN ANALYZING THE DAMAGE TO FIND THE CAUSE OF A TURBINE FAILURE THAT TOOK THE NUCLEAR PLANT OUT OF SERVICE LAST DECEMBER THE ACCIDENT WHICH INVOLVED ONLY NONNUCLEAR PLANT EQUIPMENT CAUSED MECHANICAL DAMAGE TO THE TURBINE AND MECHANICAL AND FIRE DAMAGE TO THE GENERATOR THE FINDING OF ADDITIONAL CRACKS LEADS US TO CONSIDER WHETHER REPLACEMENT RATHER THAN REPAIR IS THE BETTER OPTION SAID DOUGLAS R GIPSON EDISON'S SENIOR VICE PRESIDENT OF NUCLEAR GENERATION 9404080092 940408 LETTERS TO THE EDITOR EUROPEAN BANK'S HUMANRIGHTS PLEDGE REGARDING YOUR ARTICLE EUROPEAN BANK GETS DOWN TO BUSINESS SOME EDITIONS MARCH 14 1994 THE CHARTER OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT NEGOTIATED BY ITS 40 ORIGINAL MEMBERS STATES A COMMITMENT TO THE FUNDAMENTAL PRINCIPLES OF MULTIPARTY DEMOCRACY THE RULE OF LAW RESPECT FOR HUMAN RIGHTS AND MARKET ECONOMICS THIS COMMITMENT WAS MADE BASED ON A RECOGNITION THAT THE ROOT CAUSES OF THE ECONOMIC CATASTROPHE IN EASTERN EUROPE AND THE SOVIET UNION WERE THE RESULT AT LEAST IN PART OF THE WIDESPREAD DENIAL OF BASIC HUMAN RIGHTS THE CREATION OF THE POLITICAL UNIT AT THE EBRD WAS SIMPLY A MEANS TO IMPLEMENT THE CHARTER'S MANDATE IN A FAIR NEUTRAL AND INFORMED MANNER IF THE UNIT IS BEING DISMANTLED IT REMAINS TO BE SEEN HOW THE EBRD WILL COMPLY WITH ITS LEGAL OBLIGATION TO ADDRESS THESE ISSUES 9404080091 940408 REVIEW & OUTLOOK EDITORIAL BLOCKING THE INFORMATION HIGHWAY COME TO THINK OF IT AL GORE REALLY DOES LOOK LIKE A STATE HIGHWAY COP PUT A HELMET AND MIRRORED AVIATOR GLASSES ON THE VICE PRESIDENT AND YOU'RE LOOKING AT THE GUY WHOSE FEDERAL COMMUNICATIONS COMMISSION IS SETTING UP RADAR TRAPS AND ROADBLOCKS ALL ALONG THE INFORMATION HIGHWAY THE GOREFCC'S 55 MPH SPEED LIMIT IS A MANDATED 17 REDUCTION IN CABLE TV RATES DUE TO TAKE EFFECT MAY 15 NOT TO MENTION SOME 700 PAGES OF ATTENDANT REGULATORY CAUTION LIGHTS THIS WEEK SOUTHWESTERN BELL AND COX ENTERPRISES JUNKED THEIR PROPOSED 49 BILLION VENTURE INTO EXPLORING THE SYNERGIES OF CABLE TV AND TELEPHONES THE DEAL FOUNDERED PRINCIPALLY ON THE SAME ROADBLOCK THAT RECENTLY THWARTED THE UNION OF TELECOMMUNICATIONS AND BELL ATLANTIC AN ALMOST CERTAIN REDUCTION IN CASH FLOW TO THE CABLE OPERATORS FROM THE 17 CUT IN THEIR SUBSCRIBER RATES ALSO TUESDAY JUDGE HAROLD GREENE OVERSEER OF THE AT&T CONSENT DECREE SINCE 1982 FLAGGED DOWN AT&T'S PURCHASE OF MCCAW CELLULAR JUDGE GREENE WANTS THE COMPANIES TO SHOW THAT THE ACQUISITION IS IN THE PUBLIC INTEREST BUT EVEN MORE BREATHTAKING THEY HAVE TO ACTUALLY PAY THEIR LAWYERS TO PROVE TO JUDGE GREENE THAT CIRCUMSTANCES IN TELECOMMUNICATIONS HAVE CHANGED SINCE THE CONSENT DECREE NOW THE FOLKS AT THE FCC ARE GETTING TESTY OVER THE CHARGE THAT THEIR RATE REDUCTION IS WRECKING THE INFORMATION HIGHWAY THEIR RESPONSES AS REPORTED IN WEDNESDAY'S WASHINGTON POST DESERVE A LOT OF ATTENTION FIRST THERE WAS MR GORE'S HANDPICKED FCC CHAIRMAN REED HUNDT UNTIL RECENTLY A BELTWAY LAWYER MR HUNDT OFFERED THAT THE 17 CUT WILL BE GOOD FOR BUSINESS BECAUSE THE CHEAPER RATES WILL ATTRACT MORE CUSTOMERS SEVERAL WEEKS AGO WHEN TCIBELL ATLANTIC COLLAPSED WE LIKENED THE FCC'S MINDSET TO THAT OF FRENCH BUREAUCRATS WE APOLOGIZE TO THE FRENCH BUREAUCRATS ANOTHER ANONYMOUS FCC SOURCE GOT CLOSER TO THE HEART OF IT OUR JOB IS NOT TO MAKE MERGERS WORK OR NOT WORK OUR JOB IS TO EFFECTUATE CONGRESS'S MANDATE THAT CONSUMERS PAY REASONABLE PRICES FOR CABLE AND FOR THE INDUSTRY TO HAVE REASONABLE INCENTIVES FOR FUTURE INVESTMENT SUCCINCTLY THAT IS THE REGULATORS' CREDO GRANTING THE SINCERITY OF THE COPS HERE THERE IS IN FACT A SERIOUS PHILOSOPHICAL DIFFERENCE AT THE CENTER OF THIS TENSION BETWEEN THE PUBLIC SERVANTS AND THE ROAD RUNNERS ON THE INFORMATION HIGHWAY VICE PRESIDENT GORE ESPECIALLY TALKS A GOOD GAME ABOUT EMBRACING THE VISION OF AN INFORMATIONDRIVEN ECONOMY RIDING ALONG ELECTRONIC PATHWAYS BUT AT CRUNCH TIME MR GORE AND HIS ALLIES ARE CHOKING THEY'RE AFRAID THAT SOMEWHERE SOMEHOW CONSUMERS COULD BE HURT WHEN THE CORPORATE GIANTS START COMPETING HARD FOR THE INFORMATION MARKET THAT IS EVEN HIGHTECH DEMOCRATS DON'T TRUST THE MARKET TO PRODUCE GOOD ON ITS OWN NO IN THE PUBLIC INTEREST THEY WILL SET UP ROADBLOCKS ON THE INFORMATION HIGHWAY TO MANDATE SAFETY INSPECTION AND EXTRACT TOLLS SLOWER IS SAFER OUR OWN VIEW IS THAT IT IS TRULY HUBRIS FOR THESE POLITICIANS TO THINK THEY CAN SOMEHOW FINE TUNE OR STAGE MANAGE THE RAPIDLY DEVELOPING WORLD OF ADVANCED TECHNOLOGIES THAT INCLUDES ITS EMERGING FINANCIAL AND CORPORATE STRUCTURE NO DOUBT THE INVESTMENT BANKERS ARE RIGHT THAT THE DEALS WILL GET DONE EVENTUALLY BUT THE FAMOUS EXECUTIVES AREN'T THE ONLY ONES GRIDLOCKED BY THESE DECISIONS ENTIRE ARMIES OF ENGINEERS AND SOFTWARE WIZARDS THE PEOPLE WHO WILL ACTUALLY BRING THIS EXCITING FUTURE TO LIFE ARE PUT IN LEAD SHOES WHEN THE FCC MICROMANAGES LIKE THIS OUR GUESS IS THAT CONSUMERS WOULD HAPPILY RISK EXPOSURE TO THESE FOLKS RIGHT NOW BUT THE TEKKIECRATS OF THE CLINTON ADMINISTRATION THINK OTHERWISE OF COURSE EVEN IN A DOWN MARKET THERE ARE WINNERS ONE POTENTIAL BENEFICIARY THAT COMES TO MIND COULD BE JOHN MALONE'S TELECOMMUNICATIONS WITH THE FCC'S RATE MANDATE SUPPRESSING THE INCOME OF THE REMAINING SMALL CABLE OPERATORS THEY'RE LIKELY TO BECOME VULNERABLE TO ACQUISITION AT A REDUCED PRICE INCIDENTALLY WE NOTICE THAT TCI HAS JUST ELECTED TO ITS BOARD OF DIRECTORS FORMER HOUSE MAJORITY WHIP TONY COELHO THE ULTIMATE BELTWAY GAMESMAN MAKES SENSE TO US UNDER THE CIRCUMSTANCES BUT WE'D FEEL SAFER IF THESE FELLOWS WERE DOING THEIR DEALS BEYOND THE BELTWAY OUT IN THE OPEN MARKET WHERE WE COULD SEE THEM 9404080090 940408 LEISURE & ARTS THEATER BETTER THAN BROADWAY BY EDWIN WILSON LONDON ASK ANY KNOWLEDGEABLE PERSON ABOUT THE STATE OF WEST END THEATER AND HE WILL TELL YOU THAT IT IS BESET BY THE SAME PROBLEMS AS BROADWAY THE SCENE IS DOMINATED BY A FEW BLOCKBUSTER MUSICALS THAT HAVE BEEN AROUND FOR YEARS PRODUCTION COSTS AND TICKET PRICES ARE TOO HIGH NOTHING ORIGINATES IN THE WEST END BUT IS INSTEAD IMPORTED FROM NONPROFIT THEATERS OR FROM ABROAD THERE ARE NO NEW PRODUCERS AND NO NEW PLAYS IF YOU LOOK MORE CLOSELY THOUGH YOU WILL SEE THAT THE SITUATIONS IN LONDON AND NEW YORK ARE FAR FROM IDENTICAL THERE ARE SIGNIFICANT WAYS IN WHICH THE THEATER HERE FAR OUTSHINES ITS NEW YORK COUNTERPART AT THE MOMENT THERE ARE 15 MUSICALS PLAYING IN THE WEST END AND 13 ON BROADWAY MORE OR LESS THE SAME NUMBER WHEN HOWEVER WE COME TO NONMUSICALS THE CONTRAST IS STARTLING IN FACT IT'S ASTONISHING THERE ARE SIX PLAYS CURRENTLY ON BROADWAY AND THAT'S COUNTING ANGELS IN AMERICA AS TWO PLAYS HERE THERE ARE FOUR TIMES AS MANY 14 PLAYS IN THE WEST END AND AT LEAST FIVE EACH AT THE ROYAL NATIONAL THEATRE AND THE ROYAL SHAKESPEARE COMPANY RSC FOR A TOTAL OF 24 MOREOVER THE TWO DOZEN FIRSTCLASS NONMUSICAL PRODUCTIONS AVAILABLE HERE REPRESENT NOT ONLY QUANTITY BUT REMARKABLE VARIETY THERE IS FOR EXAMPLE AN ABSOLUTE TURKEY A BEDROOM FARCE BY THE FRENCH MASTER GEORGES FEYDEAU STARRING THE DELIGHTFUL FELICITY KENDAL AND A TOPFLIGHT CAST IT HAS BEEN DIRECTED WITH FERVOR AND MATHEMATICAL PRECISION BY SIR PETER HALL AFTER INTERMINABLE CONFUSIONS AND ATTEMPTED INFIDELITIES THE PLAY REACHES A CLIMAX IN THE INEVITABLE HOTEL BEDROOM INTO WHICH EVERY COUPLE IN PARIS SEEMS TO HAVE BEEN BOOKED ON THE SAME NIGHT STANDING IN MARKED CONTRAST IS A MORE SERIOUS WORK IVAN TURGENEV'S A MONTH IN THE COUNTRY WRITTEN IN 1850 THE PLAY EXQUISITELY DELINEATES BOTH THE HEARTACHE AND THE COMEDY OF LOVE THE WIFE OF A WEALTHY LANDOWNER FALLS DESPERATELY IN LOVE WITH THE TUTOR OF HER SON ONLY TO DISCOVER THAT HER YOUNG WARD HAS ALSO BEEN SMITTEN BY HIM MEANWHILE EVERYONE ELSE ON THE ESTATE IS ALSO IN THE THROES OF SOME KIND OF PASSION TURGENEV CAPTURES WITH AN UNFAILING EYE EVERY AMUSING REVERSAL IN THIS ROMANTIC ROLLER COASTER PLAYING THE HEROINE IS HELEN MIRREN KNOWN IN THE US FOR HER PORTRAYAL OF THE HIGHSTRUNG SUPERINTELLIGENT DETECTIVE IN THE BRITISH TV MINISERIES PRIME SUSPECT HERE SHE IS IN A DIFFERENT MODE ALTOGETHER AND LIKE THE REST OF THE CAST SHE IS SUPERB IN ADDITION TO THESE THE CURRENT CROP HERE INCLUDES PLAYS BY CARYL CHURCHILL TONY KUSHNER DAVID MAMET HAROLD PINTER JB PRIESTLEY AND TOM STOPPARD CONTRIBUTING TO THIS RICH MIX ARE OFFERINGS THAT ARE PLAYING AT OR HAVE TRANSFERRED FROM THE NATIONAL AND THE RSC SOME MIGHT ARGUE THAT IT IS UNFAIR TO COUNT THESE TWO LARGE INSTITUTIONAL THEATERS BECAUSE THEY RECEIVE SIGNIFICANT GOVERNMENT SUBSIDIES IN A WAY THAT NO THEATERS IN NEW YORK DO NONPROFIT THEATERS IN NEW YORK SUCH AS THE MANHATTAN THEATER CLUB LINCOLN CENTER AND THE ROUNDABOUT HAVE NOTHING LIKE THE SAME FINANCIAL BACKING THEIR TRUE COUNTERPARTS IN LONDON ARE PLACES LIKE THE ROYAL COURT AND THE ALMEIDA WHATEVER THEIR SOURCES OF SUPPORT HOWEVER THE NATIONAL AND THE RSC OFFER A RANGE OF FULLSCALE PRODUCTIONS WITH EXEMPLARY CASTS THAT ARE THE EQUIVALENT OF THE BEST OF EITHER BROADWAY OR THE WEST END FROM THE AUDIENCE STANDPOINT THEREFORE THEY PROVIDE JUST THAT MUCH MORE IN THE WAY OF CHOICE ONE ASPECT OF THE WIDERANGING ACTIVITY IN LONDON IS THE OPPORTUNITY IT AFFORDS THE ARTISTS OF THE THEATER AT THE MOMENT FOR EXAMPLE THE CITY IS AWASH IN EXCITING DIRECTORS IN ADDITION TO OLD HANDS SUCH AS SIR PETER AND SIR BILL BRYDEN WHO MOUNTED A MONTH IN THE COUNTRY THERE ARE A HOST OF YOUNG MEN WHO HAVE TAKEN THE THEATER BY STORM AMONG THEM ARE NICHOLAS HYTNER RESPONSIBLE FOR MISS SAIGON THE MADNESS OF GEORGE III AND MOST RECENTLY THE REVIVAL OF CAROUSEL BOTH HERE AND IN NEW YORK DECLAN DONNELLAN DIRECTOR OF THE TWO PARTS OF ANGELS IN AMERICA AND A WIDELY ACCLAIMED SWEENEY TODD AND STEPHEN DALDRY WHOSE INNOVATIVE INTERPRETATION OF AN INSPECTOR CALLS HAS WON ACCOLADES HERE AND IS ABOUT TO OPEN IN NEW YORK MR DALDRY'S FIRST PRODUCTION AS ARTISTIC DIRECTOR OF THE ROYAL COURT THEATRE WAS A REVELATORY VERSION OF ARNOLD WESKER'S THE KITCHEN MAKE NO MISTAKE NOT ALL THE NONMUSICAL PLAYS HERE ARE GEMS ALONG WITH THE GOOD STUFF THERE ARE LONGRUNNING SEX FARCES SUCH AS DON'T DRESS FOR DINNER AND HOARY MELODRAMAS SUCH AS THE WOMAN IN BLACK BUT THAT'S WHAT IT'S ALL ABOUT HAROLD CLURMAN ONCE WROTE THAT THE THEATER DESPERATELY NEEDS MORE FAILURES IN ORDER TO PRODUCE MORE MASTERPIECES ONE COULD PARAPHRASE THAT TO SAY THAT A HEALTHY THEATER NEEDS A MIXTURE OF THE TRASHY AND THE SUBLIME IT'S TRUE THAT THERE IS A SERIOUS SHORTAGE OF NEW PLAYS ON BOTH SIDES OF THE ATLANTIC WHERE NEW ONES WILL COME FROM NO ONE KNOWS BUT WHILE WE ARE WAITING FOR THEM TO ARRIVE WE CAN DO ONE OF TWO THINGS WE CAN THROW UP OUR HANDS AND DECLARE THE SITUATION HOPELESS AS THE THEATER IN NEW YORK SEEMS TO HAVE DONE OR WE CAN ROLL UP OUR SLEEVES AND GET ON WITH THE BUSINESS OF CREATING THEATER WHICH IS WHAT IS HAPPENING HERE IF THAT MEANS PUTTING AN OLD WINE IN NEW BOTTLES SO BE IT THAT'S BETTER THAN HAVING EVERYONE STAND AROUND DYING FOR A DRINK 9404080089 940408 BELL ATLANTIC DIGITAL SERVICE PHILADELPHIA BELL ATLANTIC CORP SAID ITS BELL ATLANTIC MOBILE UNIT IS OFFERING ITS PHILADELPHIA AND PITTSBURGH CUSTOMERS ACCESS TO DIGITAL CELLULAR SERVICE THE REGIONAL PHONE COMPANY SAID DIGITAL TECHNOLOGY PROVIDES STATICFREE CALLING AND INCREASED PRIVACY AND INCREASES NETWORK CAPACITY COMPARED WITH CURRENT ANALOG SYSTEMS 9404080088 940408 IS A BASEBALL CLUB WITH MICHAEL JORDAN STILL MINOR LEAGUE BIRMINGHAM AND ITS BARONS ARE PREPARING THEMSELVES FOR A WHOLE NEW GAME BY ELEENA DE LISSER AND JOHN HELYAR STAFF REPORTERS OF THE WALL STREET JOURNAL HOOVER ALA THE SPORTS BUSINESS IN AMERICA IS VERY GOOD SAYS KIMIYA MICK ONUKI CONTROLLER OF THE MINORLEAGUE BIRMINGHAM BARONS BASEBALL TEAM AND AN OFFICIAL OF SUNTORY LTD THE JAPANESE BEER AND SPIRITS COMPANY THAT IS THE TEAM'S OWNER WE'RE LEARNING HOW TO DRAW PEOPLE AND PLAN A PROMOTION PROMOTION IS IN FACT A SPECIALTY OF MINORLEAGUE BASEBALL TEAMS WHICH AT THIS TIME OF YEAR CUSTOMARILY PULL ALL KINDS OF STUNTS TO DRAW SPECTATORS AWAY FROM THEIR TELEVISION SETS AND OUT OF THE HOUSE THE SAVANNAH BRAVES ONCE LURED FANS WITH PRAY FOR PITCHING NIGHT HALF PRICE FOR PEOPLE WHO BROUGHT CHURCH BULLETINS THE ST PAUL SAINTS HAVE TRAINED A PIG TO CARRY BALLS TO UMPIRES MANY TEAMS HAVE ESTABLISHED DIRTIEST CAR NIGHT IN WHICH THE OWNER OF THE DIRTIEST CAR IN THE PARKING LOT GETS A GIFT CERTIFICATE TO A CAR WASH SUNTORY'S BIRMINGHAM BARONS THOUGH HAVE A NEW WRINKLE TONIGHT THEY WILL BE PLAYING MICHAEL JORDAN IN RIGHT FIELD THE BARONS HAVE SOLD OUT THEIR 10400SEAT STADIUM FOR THEIR FIRST FOUR GAMES THEY ARE BRACED FOR A 130PERSON MINICAMTOTING MEDIA HORDE THEY HAVE TRIPLED THEIR SECURITYGUARD FORCE AND NEARLY DOUBLED THE NUMBER OF USHERS THE TEAM'S PRESIDENT BILL HARDEKOPF HAS RESORTED TO DOING BUSINESS OUT OF HIS CAR WHERE HE CAN AVOID CONSTANT INTERRUPTIONS AND CAN USE HIS CELLULAR PHONE THE BARONS' SIX OFFICE LINES ARE HOPELESS CONSTANTLY JAMMED WITH CALLERS ASKING THINGS LIKE REMEMBER ME I'M YOUR SEVENTH COUSIN ONCE REMOVED AS TICKET MANAGER JOE DRAKE PUTS IT THE BARONS' FORMER OWNER DID GET THROUGH TO MR HARDEKOPF THE OTHER DAY TO OFFER SOME PRACTICAL ADVICE BASED ON HAVING ONCE HANDLED AN OVERFLOW CROWD FOR ALABAMA LEGEND BO JACKSON BEEF UP ELECTRICAL CAPACITY THE MAIN THING YOU'VE GOT TO WORRY ABOUT IS THAT THESE TV TRUCKS DON'T BLOW OUT YOUR ELECTRICAL SYSTEM SAYS ART CLARKSON MR CLARKSON NOW A MINORLEAGUE HOCKEY OWNER IN BIRMINGHAM SEES A NECESSARY ADJUSTMENT BEYOND AMPERAGE TOO THERE ARE 160 MINORLEAGUE CITIES AND THIS ONE WON THE LOTTERY TICKET HE SAYS THEY HAVE TO SWITCH FROM A MINORLEAGUE VIEWPOINT TO A MAJORLEAGUE MINDSET ALAS SOME FEEL THE BARONS ARE WELL ON THEIR WAY TO DOING SO THE TEAM HAS FOR YEARS GIVEN FREE TICKETS COUNTY BY COUNTY TO SCHOOLCHILDREN FOR USE AT A PARTICULAR GAME THIS SUNDAY WAS TO BE JEFFERSON COUNTY NIGHT AND THE BARONS HAD DISTRIBUTED 46000 PASSES TO SCHOOLS BUT EARLY THIS WEEK THE CLUB TOLD THE JEFFERSON COUNTY BOARD OF EDUCATION THAT THE TICKETS WOULDN'T BE HONORED THIS IS RIDICULOUS SAYS DICK ATCHISON A SCHOOL PRINCIPAL WHO HAD ALREADY HANDED OUT 1000 PASSES ALL THESE KIDS HAVE RECEIVED TICKETS AND NOW WE'RE TELLING THEM NO YOU CAN'T GO' WHY GIVE AWAY TICKETS WHEN YOU CAN SELL THEM FOR 10 15 APIECE MR HARDEKOPF SAYS THAT THE PROGRAM WAS SET UP LONG BEFORE MR JORDAN ARRIVED THAT HE IS JUST TRYING TO AVOID A LOGISTICAL NIGHTMARE AND THAT CHILDREN WILL BE ABLE TO REDEEM THE PASSES FOR GAMES LATER ON DESPITE THE UNUSUAL CIRCUMSTANCES THE BARONS DO REFLECT A BROADER REALITY IN THE BUSH LEAGUES MINORLEAGUE TEAMS HAVE BECOME LESS A PIECE OF AMERICANA AND MORE OF A BUSINESS THE BARONS PLAY IN A GLEAMING 14 MILLION PARK BUILT BY THE SUBURBAN TOWN OF HOOVER ATTENDANCE DOUBLED AND PROFIT QUINTUPLED WHEN THE BARONS MOVED TO HOOVER METROPOLITAN STADIUM FROM DECREPIT RICKWOOD FIELD IN 1988 STILL ITS 1993 REVENUE ONLY AMOUNTED TO AROUND 1 MILLION THE BARONS' OWNERSHIP ALSO REFLECTS A WIDER TREND SUNTORY PAID 36 MILLION FOR THE TEAM IN 1990 REFLECTING A HUGE RUNUP IN MINORLEAGUE CLUBS' VALUE DOUBLEA FRANCHISES LIKE BIRMINGHAM SOLD FOR 10000 IN THE 1960S AND INCREASED CORPORATE AND SYNDICATE OWNERSHIP BIRMINGHAM'S TEAM BEGAN LIFE AS THE COAL BARONS IN 1885 AND IT HAS BEEN A ROBUST FRANCHISE EVEN THOUGH THIS IS MOSTLY FOOTBALL COUNTRY THE BARONS DREW A WHOPPING 448000 FANS ONE YEAR IN THE LATE 1940S AND THAT DIDN'T EVEN COUNT THE GATE FOR THE BIRMINGHAM BLACK BARONS FOR WHOM WILLIE MAYS WAS LEARNING TO PLAY BASEBALL THE TEAM FOLDED IN 1961 HOWEVER RATHER THAN ACCEDE TO INTEGRATION THAT WAS TO BE EXPECTED PERHAPS FOR A FRANCHISE THAT GAVE BULL CONNOR HIS START IN PUBLIC LIFE AS ITS 1930SERA RADIO ANNOUNCER THE BARONS WERE REVIVED IN 1964 AND HAD GREAT SQUADS IN THE LATE '60S WHEN THE TEAM WAS A FARM CLUB OF THE KANSAS CITY A'S AND OWNER CHARLIE FINLEY A BIRMINGHAM NATIVE STOCKED IT WITH HIS TOP YOUNG STARS ROLLIE FINGERS JOE RUDI AND REGGIE JACKSON IT WAS STILL BRUTAL FOR BLACK ATHLETES THEN MR JACKSON HAD TO STAY AT A BLACKSONLY HOTEL IN 1967 TWENTYSEVEN YEARS LATER MR JORDAN IS SEARCHING FOR HOUSING THROUGH THE BARONS' EXCLUSIVE REALESTATE AGENT AND SETTING FORTH EXACTING REQUIREMENTS A HOUSE THAT IS NO MORE THAN THREE YEARS OLD WITH FOUR OR MORE BEDROOMS A TOPNOTCH SECURITY SYSTEM AND WITHIN A MONTHLY BUDGET OF 3000 TO 5000 THE AGENT MARY MILTON HAS RECEIVED 40 UNSOLICITED CALLS OFFERING PROPERTIES BUT HER CLIENT HASN'T YET FOUND ANYTHING BUT MR JORDAN'S REAL IMPACT ON BIRMINGHAM WILL BE LESS ON THE REALESTATE MARKET THAN ON THE BARONS IF HE CAN LAST FOR LONG THEY WON'T HAVE TO SCUFFLE THROUGH 140 GAMES WITH ATTRACTIONS LIKE BABE RUFF THEIR LOVABLE OVERSIZED DOG MASCOT OR PROMOTIONS LIKE DIAMOND DAY WHEREIN 500 LADIES DIG FOR A HIDDEN GEM ON THE FIELD THE BARONS' SOUTHERN LEAGUE COMPETITORS ARE ALSO SCORING BIG RUNS THE DAY AFTER MR JORDAN WAS ASSIGNED TO BIRMINGHAM CAROLINA MUDCATS GENERAL MANAGER JOE KREMER CAME IN TO WORK AT 630 AM AND A 30YARDLONG LINE OF PEOPLE HAD ALREADY FORMED TO BUY TICKETS TO BARONS GAMES SOME NOT SCHEDULED UNTIL JULY EVEN IF HE DOESN'T LAST THE BARONS' SEASONTICKET BASE HAS JUMPED 40 TO 1400 AND ADVANCE SALES HAVE CLIMBED SHARPLY AS WELL THANKS TO FANS LIKE WANDA PRENTICE A 33YEAROLD BIRMINGHAM RESIDENT WHO HAD HER BOYFRIEND DRIVE THE 15 MILES TO HOOVER WEDNESDAY JUST TO WATCH MR JORDAN PRACTICE WHEN SHE CAUGHT A GLIMPSE OF HIM ON THE FIELD SHE RAN SCREAMING OUT OF THE STANDS I SAW MIKE I SAW MIKE HE WAVED AT ME SHE SHRIEKED I THINK I'M GOING TO FAINT MY GOD THERE IS A DOWNSIDE FOR MR JORDAN'S SUPPORTING CAST IN CHICAGO BULLS DAYS TEAMMATES WERE CONDESCENDINGLY CALLED THE JORDANAIRES AND THESE MINORLEAGUERS FALL EVEN FURTHER UNDER HIS SHADOW THOUGH SOME MAY BE BETTER BASEBALL PLAYERS WHEN BARONS MANAGER TERRY FRANCONA INTRODUCED PLAYERS AT A LOCAL MEDIA LUNCHEON THIS WEEK HE PLEADED THAT THEY NOT BE IGNORED PLEASE DON'T MAKE THEM TAKE A BACK SEAT HE SAID BUT IF MR JORDAN LASTS OTHERS HOPE TO HITCH THEIR WAGON TO HIS STAR FELLOW PLAYERS HOPE HE IS SERIOUS ABOUT BUYING A LUXURY BUS SO THAT THERE WON'T BE ANY REPEATS OF LAST YEAR'S ORDEALS WHEN THE TEAM BUS BROKE DOWN TWICE RADIO PLAYBYPLAY MAN CURT BLOOM HOPES THE REFLECTED GLORY OF MR JORDAN WILL ADD LUSTER TO HIS DEMO TAPES SO HE CAN MOVE UP TO A BIGLEAGUE BOOTH HE HAS BEEN WORKING ON HIS SIGNATURE HOMERUN CALL TO PREPARE FOR MR JORDAN'S FIRST ONE GONZO JORDAN I WOULD BE LYING IF I TRIED TO DOWNPLAY THE SIGNIFICANCE OF ALL THIS SAYS MR BLOOM 31 ALL MY LIFE I'VE WANTED TO BE AN ANNOUNCER IN THE MAJOR LEAGUES COME FRIDAY NIGHT I GET MY CHANCE MY AUDITION 9404080087 940408 WASHINGTON SLOWS SPEED ON INFORMATION SUPERHIGHWAY BY WALL STREET JOURNAL REPORTERS JOHN J KELLER AND LESLIE CAULEY IN NEW YORK AND MARY LU CARNEVALE IN WASHINGTON TO HEAR TELECOMMUNICATIONS COMPANIES TELL IT CONFLICTING POLICIES OUTDATED REGULATIONS AND INSENSITIVE WASHINGTON BUREAUCRATS ARE HAMPERING THEIR EFFORTS TO BUILD THE INFORMATION HIGHWAY IT'S VERY FRUSTRATING SAYS WAYNE PERRY VICE CHAIRMAN OF MCCAW CELLULAR COMMUNICATIONS INC WHOSE PLANNED 126 BILLION MERGER WITH AMERICAN TELEPHONE & TELEGRAPH CO GOT SNAGGED IN WASHINGTON THIS WEEK IF YOU HAVE A LOW TOLERANCE FOR AMBIGUITY TELECOMMUNICATIONS ISN'T THE INDUSTRY TO WORK IN RIGHT NOW OF COURSE THERE ARE MANY OTHER REASONS WHY TELECOMMUNICATIONS ALLIANCES ARE BOGGING DOWN OR FALLING APART CORPORATE CULTURES HAVE CLASHED AND PHONE COMPANIES NO LONGER WANTED TO PAY TOP DOLLAR FOR CABLE MONOPOLIES THAT WILL SOON BE PINCHED BY RATE REGULATION AND COMPETITION IN ADDITION TECHNOLOGICAL GLITCHES AND UNCERTAIN CONSUMER DEMAND HAVE SLOWED NEW SERVICES REED HUNDT CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION ACKNOWLEDGES THAT THERE'S NO QUESTION THAT ANY REGULATION IS A BURDEN THAT MOST BUSINESSES WOULD RATHER NOT BEAR BUT HE SAYS AGENCY STAFF HAS WORKED OVERTIME FOR WEEKS TO HELP CABLE OPERATORS COMPLY WITH NEW PRICING RULES THE FCC HAS EVEN SET UP A PHONE BANK TO HELP CABLE OPERATORS FIGURE OUT THE RULES' IMPACT IF THEY GIVE US THE DATA WE WILL DO THE CALCULATIONS FOR THEM HE SAYS PHONE AND CABLE COMPANIES ARE STILL FRUSTRATED THOUGH THE FCC HAS HELD BACK MORE THAN A DOZEN REQUESTS FOR INTERACTIVE NETWORK TESTS FOR MONTHS FEDERAL JUDGE HAROLD H GREENE WHO FIRST APPROVED THE BREAKUP OF AT&T A DECADE AGO CONTINUES TO HOLD SWAY OVER VIRTUALLY EVERY MOVE AT&T AND THE BABY BELLS MAKE TOWARD THE INTERACTIVE ERA AND THE JUSTICE DEPARTMENT SEEMS TO BE TAKING A HARDER LINE IN REVIEWING SUCH COMBINATIONS AS AT&TMCCAW AND BEFORE ITS COLLAPSE BELL ATLANTIC CORP'S PLAN TO ACQUIRE TELECOMMUNICATIONS INC THERE STILL ISN'T A FIRM POLICY FOR GIVING PHONE COMPANIES THE FREEDOM TO SET THEIR OWN RATES FOR ADVANCED VIDEO AND DATA SERVICES OVER THE NEW HIGHWAYS LAMENTS TIMOTHY J REGAN VICE PRESIDENT OF PUBLIC POLICY AT CORNING INC A PRINCIPAL SUPPLIER OF OPTICAL COMMUNICATIONS FIBER THIS MAKES IT VERY DIFFICULT FOR A TELEPHONE COMPANY TO BUILD A STATEOFTHEART COMMUNICATIONS SYSTEM WHEN THEY COULD POTENTIALLY LOSE THEIR MAJOR SOURCE OF REVENUE TO A NEW RIVAL CARRIER THAT CAN SET PRICES AT WILL HE SAYS HE NOTES THAT OF THE 29 MILLION HOMES SCHEDULED TO BE WIRED FOR VIDEO SERVICES ONLY 25 WILL ACTUALLY GET TWOWAY SERVICES MOST WILL ONLY GET BROADCAST CABLE TV HE SAYS JUDGE GREENE'S OVERSIGHT AND THE PROTRACTED PROCESS FOR WINNING WAIVERS CAN BE PARTICULARLY VEXING TO THE BABY BELL REGIONAL PHONE COMPANIES AND OTHERS LOOKING FOR QUICK EXPANSION IF WE HAD A GUY WHO WAS NOT QUITE SO EGOTISTICAL AND TRIED TO BE MORE OF A CAREFUL MOLDER OF POLICY THAT WOULD BE ONE THING BUT THE PERSON WE HAVE HAS ESSENTIALLY BECOME A COURT AND LEGISLATOR OF TELECOM POLICY SAYS ROBERT LYNCH SOUTHWESTERN BELL CORP'S REGULATORY AFFAIRS COUNSEL JAMES R YOUNG VICE PRESIDENT AND GENERAL COUNSEL AT BELL ATLANTIC SAYS OF THE WAIVER PROCESS IN THE EARLY DAYS IT WAS FRUSTRATING BUT AT LEAST SOME WAIVERS GOT THROUGH TEN YEARS LATER THAT PROCESS HAS BROKEN DOWN COMPLETELY IN 1986 FOR EXAMPLE THE US DISTRICT COURT IN WASHINGTON DC ACTED ON 49 WAIVER REQUESTS AND THE AVERAGE AGE OF WAIVERS STILL PENDING WAS JUST FIVE MONTHS IN 1993 THE COURT ACTED ON JUST NINE WAIVERS AND THE REMAINING ONES WERE AN AVERAGE OF FOUR YEARS OLD THE PROCESS ISN'T MUCH FASTER AT THE JUSTICE DEPARTMENT WHICH HAS A WAIVER PROCESS OF ITS OWN IN 1984 THE DEPARTMENT DISPOSED OF 23 WAIVERS WHICH WERE PENDING AT THE AGENCY FOR TWO MONTHS ON AVERAGE BUT IN 1993 THE DEPARTMENT HANDLED JUST SEVEN WAIVERS AND EACH ONE WAITED AROUND FOR AN AVERAGE OF THREE YEARS BIGGER ROADBLOCKS LOOM AT THE FCC THE AGENCY RECENTLY IMPOSED RATE CUTS OF 17 IN MONTHLY CABLE BILLS MAKING PHONECABLE ALLIANCES LESS FINANCIALLY ALLURING CABLE CASH FLOWS HAD BEEN ONE OF THE MAIN ATTRACTIONS FOR THE BELL COMPANIES THE INCREASES HELPED DERAIL THE BELL ATLANTICTCI MERGER AND THIS WEEK THE 46 BILLION CABLE VENTURE BETWEEN SOUTHWESTERN BELL CORP AND COX COMMUNICATIONS INC UNRAVELED ULTIMATELY IT COULD ADD YEARS TO THE TIME REQUIRED FOR THE INFORMATION HIGHWAY TO REACH MOST AMERICANS THERE IS ALSO AN FCC LOGJAM THE AGENCY HAS APPROVED JUST FIVE TRIALS FOR INTERACTIVE VIDEO SERVICES ANOTHER 17 REQUESTS ARE PENDING AND SOME OF THEM HAVE LANGUISHED AT THE AGENCY FOR MORE THAN A YEAR ONE RESULT BELL ATLANTIC HAS REPEATEDLY PROCLAIMED THAT IT WOULD WIRE UP A QUARTER OF A MILLION HOMES BY THE END OF THIS YEAR BUT NOW WILL BE LUCKY TO GET 1000 HOMES LINKED UP BY YEAREND A COMPANY SPOKESMAN SAYS THAT COMPANY ALONE HAS MORE THAN 15 BILLION IN PROPOSED INVESTMENTS THAT HINGE ON GETTING APPROVAL FIRST FROM THE FCC YET THE FCC USES AN APPROVAL PROCESS THAT DATES BACK TO THE EARLY 20TH CENTURY AND ORIGINALLY APPLIED TO RAILROAD REQUESTS TO EXTEND THEIR TRACKS TODAY IT IS A FRACTIOUS AFFAIR ONE BELL ATLANTIC FILING ALONE HAS HAD MORE THAN 50 PLEADINGS AS CONSUMER ADVOCATES POTENTIAL COMPETITORS INCUMBENT CABLE OPERATORS AND MUNICIPAL OFFICIALS WEIGH IN WITH THEIR CONFLICTING VIEWS THE TASK OF SORTING THROUGH ALL THE ARGUMENTS FALLS ON THE SHOULDERS OF JUST THREE FCC STAFFERS WHO MAKE THEIR RECOMMENDATIONS TO THE FCC COMMISSIONERS WHO ARE RESPONSIBLE FOR MAKING FINAL DECISIONS ON APPLICATIONS WE'RE DOING IT JUST AS FAST AS WE CAN WITH THE AVAILABLE RESOURCES WE HAVE SAYS GREG LIPSCOMB AN FCC ATTORNEY IN THE COMMON CARRIER BUREAU THERE'S A COMMUNICATIONS REVOLUTION UNDER WAY AND WE'RE MAKING AN EFFORT TO KEEP UP WITH THAT IN OTHER CASES LOCAL GOVERNMENT OFFICIALS CAN CLOG UP THE WORKS NYNEX HAD AN FCC REQUEST PENDING TO WIRE UP JUST THREE BUILDINGS IN MANHATTAN FOR VIDEO SERVICES BUT NEW YORK OFFICIALS BALKED SAYING THE COMPANY DIDN'T HAVE PROPER PERMISSION TO PROCEED THE FCC AFTER MUCH DELIBERATION ULTIMATELY LET THE TEST GO FORWARD IN OTHER INSTANCES THE FCC MAKES VALIANT ATTEMPTS TO SPEED THE REGULATORY PROCESS ONLY TO HAVE THE EFFORT FALL SHORT AS IT PREPARED TO IMPOSE THE LATEST ROUND OF CABLE RATE CUTS BY MAY 15 THE FCC WENT SO FAR AS TO SUPPLY COMPUTER DISKS SO THAT CABLE OPERATORS COULD POP THEM INTO THEIR PCS AND START CRUNCHING NUMBERS BUT THE AGENCY USED THE EXCEL SPREADSHEET PROGRAM INSTEAD OF LOTUS WHICH IS USED BY ALMOST EVERY ACCOUNTING DEPARTMENT IN THE INDUSTRY THE FCC IS NOW WORKING ON A LOTUS VERSION THE FCC'S THIN STAFF WAS FURTHER BURDENED BY THE ONEROUS NEW REREGULATION OF CABLE IT WON A 25 BUDGET INCREASE LAST YEAR BUT MUCH OF THAT WILL COVER THE NEW CABLE RULES ONLY NOW IS THE FCC INSTALLING A NEW PHONE SYSTEM AND NEW COMPUTERS AS RECENTLY AS FIVE YEARS AGO IT STILL USED ROTARY PHONES THE AGENCY HAS BEEN UNDER A LOT OF PRESSURE BECAUSE OF CONGRESSIONAL DEADLINES AND SCARCE RESOURCES SAYS FCC VETERAN BRIAN FONTES A TOP AIDE TO FCC COMMISSIONER JAMES QUELLO A LOT OF THINGS ARE HAPPENING IN THE INDUSTRY THAT REQUIRE QUICK DECISIONS THEY COME TO THE COMMISSION AND WANT DECISIONS MADE YESTERDAY THE LONGER YOU HAVE TO WAIT THE EASIER IT IS FOR A COMPETITOR WHO DOESN'T HAVE TO JUMP THROUGH THE SAME HOOPS TO GET A HEAD START SAYS KATHY WOODS DIRECTOR OF REGULATORY RELATIONS FOR THE US TELEPHONE ASSOCIATION COMING LEGISLATION MAY CHANGE THAT BILLS IN THE HOUSE AND SENATE WHICH CALL FOR LOOSENING RESTRICTIONS ON THE BABY BELLS' ENTRANCE INTO LONGDISTANCE AND OTHER SERVICES WOULD ALSO SET A FRAMEWORK FOR A NATIONAL TELECOMMUNICATIONS POLICY SUCH CENTRALIZED TELECOM SUPERVISION WOULD PREEMPT CERTAIN STATE AND LOCAL REGULATIONS LAWS THAT OFTEN IMPEDE THE DELIVERY OF ADVANCED SERVICES 9404080086 940408 LETTERS TO THE EDITOR THE OLD BILTMORE GUYS DOLLS NATHAN & HOLDEN I ENJOYED MARIE WINN'S MARCH 14 ESSAY CONCERNING THE DUCKS IN CENTRAL PARK SHE MAY ENJOY KNOWING THAT THE CLOCK AT THE BILTMORE HOTEL USED AS A MEETING SPOT BY HOLDEN CAULFIELD IN THE CATCHER IN THE RYE STILL EXISTS IN ABOUT THE SAME SPOT THE BILTMORE WAS RENOVATED AS AN OFFICE BUILDING AT 335 MADISON AVE SEVERAL YEARS AGO AND STILL HAS THE CLOCK IN THE LOBBY THIS WAS INSISTED UPON BY THE PRIME TENANT THE BILTMORE HOTEL FIGURED IN OTHER WORKS OF THE ERA THE BILTMORE GARAGE WAS THE SPOT THAT JOEY BILTMORE OFFERED TO NATHAN DETROIT FOR HIS CRAP GAME IN GUYS AND DOLLS BUT NATHAN DIDN'T HAVE THE NECESSARY ONE THOUSAND BUCKS AND THE BILTMORE GARAGE DIDN'T SURVIVE THE CONVERSION TO AN OFFICE BUILDING EITHER 9404080083 940408 PEPPERAND SALT TO ALL THOSE EXCITING DOMESTIC FIGHTS I HAVE PASSED UP ALL THEIR BAIT AND DIDN'T ONCE GET SPRITZED 9404080082 940408 LETTERS TO THE EDITOR IT'S UNFAIR TO COMPARE SILVERADO WHITEWATER WOLFGANG G ROESELER LETTERS TO THE EDITOR MARCH 31 QUESTIONS WHY THE JOURNAL EDITORIAL WRITERS DID NOT REACH THE SAME LEVEL OF INDIGNATION RELATIVE TO THE SILVERADO/NEIL BUSH SCANDAL THAT THEY DID RELATIVE TO THE CLINTONS' FINANCIAL DEALINGS FROM THE PERSPECTIVE OF SOMEONE WHO FOLLOWS BANKS FOR A LIVING AND OCCASIONALLY SELLS THEM I SAY THE CASES ARE VERY DIFFERENT NEIL BUSH NEVER RAN FOR OFFICE AND THERE HAVE BEEN FEW ACCUSATIONS THAT HE ENRICHED HIMSELF AT THE EXPENSE OF THE TAXPAYERS HE WAS GUILTY OF POOR JUDGMENT AND TECHNICAL VIOLATIONS AND HE WAS SANCTIONED FOR IT EXCEPT FOR HIS PARENTAGE HIS SINS WOULD NOT HAVE RATED A PAGE 15 STORY IN ANY NEWSPAPER THE CLINTONS ON THE OTHER HAND ARE ACCUSED OF BENEFITING DIRECTLY AND PERSONALLY FROM ABUSES OF POWER BY MR CLINTON WHEN HE WAS GOVERNOR OF ARKANSAS FURTHER AS MR CLINTON DOES HOLD THE MOST POWERFUL ELECTIVE OFFICE IN THE WORLD HIS ACTIONS ARE NEWS PARTICULARLY WHEN THERE ARE ADDITIONAL ACCUSATIONS OF BOTH PAST AND CURRENT INCIDENTS THAT ARE EQUALLY QUESTIONABLE TO SAY THAT THESE TWO CASES RATE THE SAME LEVEL OF INDIGNATION IS LUDICROUS FRANKLY I AM WONDERING WHEN THE REST OF THE MEDIA WILL SUMMON UP THE SAME LEVEL OF INDIGNATION AND OUTRAGE AT THE CLINTONS AS WAS HEAPED ON NEIL BUSH SHOULD NOT A MAN WHO HAS RUN SUCCESSFULLY FOR THE HIGHEST OFFICE IN THE LAND BE HELD TO AT LEAST AS HIGH A STANDARD AS A MAN WHOSE ONLY CLAIM TO FAME IS BEING THE SON OF A MAN WHO WAS ELECTED PRESIDENT 9404080081 940408 DILLARD POSTS HIGHER SALES LITTLE ROCK ARK DILLARD DEPARTMENT STORES INC SAID SALES AT STORES OPEN MORE THAN A YEAR ROSE 16 FOR THE MONTH ENDED SATURDAY TOTAL SALES INCREASED 20 TO 5439 MILLION FROM 453 MILLION DURING THE TWOMONTH PERIOD ENDED SATURDAY TOTAL SALES ROSE 13 TO 924 MILLION FROM 8153 MILLION SALES AT STORES OPEN MORE THAN A YEAR INCREASED 10 9404080080 940408 LETTERS TO THE EDITOR IT'S NOT A CASE OF THEM VS US WHAT DO LANDLORDS HISPANICS NEONAZIS SNAIL DARTERS BLACKS JEWS RAIN FORESTS BUDDHISTS ATHEISTS UNMARRIED COUPLES SECULAR HUMANISTS AND CATHOLICS HAVE IN COMMON THEY ALL MANAGED TO MAKE AN APPEARANCE IN YOUR MARCH 22 EDITORIAL LANDLORDS' RIGHTS APPARENTLY ENVIRONMENTALISM RELIGIOUS FREEDOM PROPERTY GOVERNMENTAL REGULATION TOLERANCE SEPARATION OF CHURCH AND STATE EQUAL TREATMENT AND DISCRIMINATION ISSUES ALL BOIL DOWN ONCE AGAIN TO BIG BROTHER VS THE LITTLE GUY TO THEM VS US AFTER ALL THE POOR BROTHERS DESILETS MERELY WANT TO ACT ON THEIR OBVIOUS RIGHT TO COLLECT RENT CHECKS ONLY FROM THOSE WHO SHARE THEIR MORAL OUTLOOK DO THEY REGULARLY CHECK TO MAKE SURE THEIR PROPERLY MARRIED TENANTS ARE USING ONLY THE RHYTHM METHOD FOR CONTRACEPTION I ESPECIALLY LIKED YOUR CLAIM THAT THE DESILETS' REFUSING TO RENT TO UNMARRIED COUPLES IS ESSENTIALLY NO DIFFERENT FROM A JEWISH SYNAGOGUE REFUSING TO RENT ITS MEETING HALL TO A NEONAZI GATHERING A PARTICULARLY APT ANALOGY SINCE WE ALL KNOW THAT UNMARRIED COUPLES ARE ORGANIZED WITH THE PURPOSE OF HARASSING SUBJUGATING AND ULTIMATELY ELIMINATING VARIOUS RACIAL AND RELIGIOUS GROUPS LIFE IS FAR MORE COMPLICATED AND INTERESTING THAN YOU PORTRAY THE GOOD GUYS AND THE BAD GUYS ARE NOT THAT EASY TO IDENTIFY PLEASE STOP INSULTING THE INTELLIGENCE OF YOUR READERS 9404080079 940408 LETTERS TO THE EDITOR DON'T LET THAT WHISTLE SCARE YOU MARCY MASON'S MARCH 14 MANAGER'S JOURNAL THE CURSE OF WHISTLEBLOWING ILLUSTRATES THE PUBLIC CONFUSION ABOUT THE PURPOSE AND EFFECT OF THE COMPREHENSIVE COMPLIANCE PROGRAMS BEING ESTABLISHED BY MANY AMERICAN BUSINESSES TODAY THE ENACTMENT OF THE FEDERAL ORGANIZATIONAL SENTENCING GUIDELINES HAS CAUSED MANY CORPORATIONS TO REVAMP EXISTING POLICIES OR IMPLEMENT NEW SYSTEMS TO CREATE PROGRAMS THAT QUALIFY AS EFFECTIVE UNDER THE GUIDELINES CONTRARY TO MS MASON'S THESIS THE PURPOSE OF THESE PROGRAMS AND THE ETHICS HOTLINES THAT ARE OFTEN PART OF THEM IS NOT TO CREATE A KIND OF CORPORATE POLICE STATE BUT RATHER TO COMPLY WITH THE LAW AND FOSTER AWARENESS OF BUSINESS ETHICS AN EFFECTIVE COMPLIANCE PROGRAM PROVIDES FOUR SIGNIFICANT ADVANTAGES IT DISSEMINATES A POSITIVE CORPORATE ETHOS THAT DISCOURAGES WRONGDOING IF EFFECTIVE THE PROGRAM DETECTS MISCONDUCT AND ALLOWS THE COMPANY TO ADDRESS SITUATIONS PROMPTLY TO MINIMIZE COSTLY ADVERSE CONSEQUENCES INCLUDING CRIMINAL PROSECUTION CIVIL LITIGATION LOST PRODUCTIVITY AND NEGATIVE PUBLICITY A GOOD PROGRAM OFTEN WEIGHS HEAVILY WITH A PROSECUTOR CONSIDERING WHETHER TO INDICT A CORPORATION AS OPPOSED TO GOING AFTER ONLY ITS ROGUE EMPLOYEES THE EXISTENCE OF AN EFFECTIVE COMPLIANCE PROGRAM CAN REDUCE A CONVICTED COMPANY'S FINE SUBSTANTIALLY THEORETICALLY AS MUCH AS 95 AND HELP A COMPANY AVOID CORPORATE PROBATION WHICH CAN RESULT IN COURT SUPERVISION OF ITS AFFAIRS MS MASON FAILS TO NOTE THAT THE GUIDELINES REQUIRE A COMPANY AS PART OF ITS COMPLIANCE PROGRAM TO PUBLICIZE A REPORTING SYSTEM WHEREBY EMPLOYEES AND OTHER AGENTS COULD REPORT CRIMINAL CONDUCT BY OTHERS WITHOUT FEAR OF RETRIBUTION WHILE NOT REQUIRED THE HOTLINE HAS BEEN THE OBVIOUS PREFERRED CHOICE FOR MANY LARGE CORPORATIONS TRYING TO MEET THIS REQUIREMENT THE GUIDELINES REWARD ONLY THOSE PROGRAMS DEEMED EFFECTIVE AND EFFECTIVENESS IS JUDGED IN PART BY WHETHER A PROGRAM MEETS INDUSTRY STANDARDS THUS A COMPANY THAT CHOOSES NOT TO IMPLEMENT A HOTLINE SYSTEM WHEN ALL OF ITS COMPETITORS ARE DOING SO RUNS THE RISK OF HAVING A NONEFFECTIVE AND ESSENTIALLY WORTHLESS COMPLIANCE PROGRAM AN ETHICS HOTLINE MIGHT AS MS MASON SUGGESTS CAUSE SOME EMPLOYEES TO FEAR THAT COWORKERS ARE LOOKING OVER THEIR SHOULDERS READY TO SNITCH IF IMPLEMENTED PROPERLY HOWEVER IT IS MORE LIKELY TO GIVE WORKERS A SENSE THAT THEIR EMPLOYER PLAYS BY THE RULES AND TAKES BUSINESS ETHICS SERIOUSLY MS MASON NOTED EMPLOYEE FEARS OF BIG BROTHER AND CITED A DEMORALIZING MINDSET CREATED BY INVESTIGATIONS SHE ALSO QUESTIONED THE ABILITY OF COMPANIES TO PROTECT CONFIDENTIALITY AND TO PROTECT WHISTLEBLOWERS FROM RETRIBUTION A HOTLINE SHOULD SERVE AS A LAST RECOURSE IN AN ESTABLISHED MANAGEMENT PROCESS FOR RAISING WORKPLACE CONCERNS KEY TO AN EFFECTIVE PROGRAM IS HAVING QUALIFIED TRUSTED PEOPLE TO STAFF THE PHONE LINES AND CONDUCT THOROUGH EXPEDITIOUS INVESTIGATIONS A HOTLINE PROGRAM ALSO SHOULD BE REGULARLY MEASURED FOR EFFECTIVENESS HOTLINES ARE NOT A PANACEA FOR ENSURING ETHICAL BEHAVIOR OR PREVENTING COMPLIANCE PROBLEMS COMPANIES SERIOUSLY COMMITTED TO UNEARTHING AND CORRECTING EMPLOYEE WRONGDOING MUST FIRST FOSTER AN ATMOSPHERE OF TRUST AT ALL LEVELS TOP MANAGEMENT MUST BE ABSOLUTELY COMMITTED TO ETHICAL CONDUCT AND GUIDELINES FOR APPROPRIATE BEHAVIOR MUST BE CLEARLY ESTABLISHED WIDELY COMMUNICATED AND FOLLOWED THROUGHOUT THE CORPORATION 9404080078 940408 THE AMERICAS CANADA'S TAXING POLS OUTWITTED BY UNDERGROUND ECONOMY BY PIERRE LEMIEUX MONTREAL JUST AFTER HE TOOK OVER AS FEDERAL FINANCE MINISTER PAUL MARTIN WAS QUOTED IN THE JAN 4 EDITION OF THIS PAPER AS SAYING THAT HUNDREDS OF THOUSANDS OF OTHERWISE HONEST PEOPLE HAVE WITHDRAWN THEIR CONSENT TO BE GOVERNED HE WAS REFERRING TO THEIR PARTICIPATION IN THE UNDERGROUND ECONOMY IN PARTICULAR THE PRACTICE OF SMUGGLING IS WHAT MOST PROVOKED HIS IRE SHORTLY AFTERWARD MR MARTIN'S COLLEAGUE DEPARTMENT OF REVENUE MINISTER DAVID ANDERSON WENT FURTHER BY SUGGESTING THAT CANADA BECOME A NATION OF GOVERNMENT SNITCHES IN THE FEB 12 TORONTO GLOBE AND MAIL MR ANDERSON PUT CANADIANS ON NOTICE PEOPLE WHO ARE CURRENTLY IN THE UNDERGROUND ECONOMY WILL SUDDENLY START REALIZING THAT ANY DAY OF THE WEEK ANY HOUR OF THE DAY REVENUE CANADA MAY GET A PHONE CALL AND SOMEONE MAY RAT ON THEM OBVIOUSLY THE BUREAUCRATS SMELL SOMETHING ROTTEN IN THE STATE OF CANADA SMUGGLING IS ONLY ONE FACET OF THE UNDERGROUND ECONOMY THAT HAS DEVELOPED IN RESPONSE TO HIGH TAXES AND REGULATION BUT THE PRACTICE OF SMUGGLING ESPECIALLY THE SMUGGLING OF ALCOHOL AND TOBACCO IS WHAT THE GOVERNMENT HAS SET ITS SIGHTS ON UNTIL LAST FEBRUARY FEDERAL AND PROVINCIAL TAX INCREASES FORCED UP THE LEGAL PRICE OF A CARTON OF CIGARETTES TO NEARLY 50 CANADIAN TOBACCO SMUGGLED PRIMARILY FROM THE US SOLD FOR ROUGHLY HALF THE LEGAL PRICE ACCORDING TO INDUSTRY SOURCES THREEFOURTHS OF CIGARETTES CONSUMED IN QUEBEC AND 40 IN THE WHOLE COUNTRY WERE CONTRABAND ORDINARY HONEST CITIZENS PURCHASED SMUGGLED CIGARETTES AT LOCAL CONVENIENCE STORES ENTERPRISING TEENAGERS RAN PROFITABLE SIDE BUSINESSES AT SCHOOL IN QUEBEC A SHOPKEEPERS' ALLIANCE CALLED MOVEMENT TO ABOLISH CIGARETTE TAXES OPENLY DEFIED THE LAW BY STAGING SALES OF SMUGGLED CIGARETTES THE CHIEF OF THE QUEBEC PROVINCIAL POLICE HAD TO WARN HIS OFFICERS AGAINST SMOKING SMUGGLED TOBACCO FINALLY THE GOVERNMENT CRIED UNCLE ON FEB 8 THE FEDERAL AND THE QUEBEC GOVERNMENTS ANNOUNCED A JOINT 20 REDUCTION OF TAXES ON A CARTON OF CIGARETTES IN AN EFFORT TO FIGHT SMUGGLING IN QUEBEC THIS LED TO A DROP OF 50 IN LEGAL TOBACCO PRICES POLICE OFFICIALS ESTIMATE THAT SMUGGLING HAS NOW DIMINISHED BY 80 TO 90 IN THIS PROVINCE THE PROVINCES THAT HAVE NOT CUT THEIR OWN TAX RATES OR HAVE NOT CUT THEM AS MUCH AS QUEBEC ARE NOW COMPLAINING ABOUT INTERPROVINCIAL SMUGGLING NEVERTHELESS THE GOVERNMENT STILL DOESN'T GET IT WHEN HE ANNOUNCED THE TAX REDUCTION PRIME MINISTER JEAN CHRETIEN SUGGESTED THAT ONCE THE SMUGGLING NETWORKS HAVE BEEN DISMANTLED THE GOVERNMENT WILL BE ABLE TO RESTORE THE APPROPRIATE LEVEL OF TAXATION TWO DAYS LATER HIS HEALTH MINISTER REPEATED THE WARNING THE FACT THAT NOT EVERY VOTER IS A COMPLETE SUCKER PARTLY EXPLAINS WHY SOME INTERNATIONAL SMUGGLING STILL GOES ON MOREOVER SMUGGLERS HAVE SWITCHED TO OTHER LUCRATIVE UNDERGROUND MARKETS THAT ARE ALSO FUELED BY EXCESSIVE TAXATION ACCORDING TO INDUSTRY SOURCES CANADIAN TAXES ON LIQUOR PRODUCTS AMOUNT TO SOME 83 OF THE RETAIL COST TWICE THE AVERAGE US LEVEL OF TAXATION NOT SURPRISINGLY THE QUEBEC PROVINCIAL POLICE HAVE NOTED AN INCREASE IN ALCOHOL AND PERFUME SMUGGLING OFTEN THROUGH THE NETWORK OF FORMER UNDERGROUND TOBACCO SMUGGLERS INDEED ALCOHOL SMUGGLING PROBABLY IS EQUIVALENT TO 15 TO 25 OF THE LEGAL MARKET FIREARMS SMUGGLING IS APPARENTLY ALSO ON THE RISE FOLLOWING 1991 AND 1992 LEGISLATION THAT BASICALLY AIMS AT DISARMING CANADIANS LIKE ANY UNDERGROUND ACTIVITY HOUSEHOLD SERVICES CONSTRUCTION AND REPAIRS BARTER ETC THE DEVELOPMENT OF SMUGGLING NETWORKS DURING THE PAST FEW YEARS HAS HAD AN IMPACT ON GOVERNMENT REVENUES AS ILLUSTRATED BY THE ACCOMPANYING TABLE AFTER GROWING FOR SOME YEARS TOTAL GOVERNMENT REVENUES FEDERAL AND PROVINCIAL FROM ALCOHOL AND TOBACCO TAXES STARTED DIPPING IN 1992 AND THEN FELL SIGNIFICANTLY A 79 DROP IN 1993 AT LEAST AT THE FEDERAL LEVEL THE RECENT REVENUE SHORTAGE COMES MAINLY FROM TOBACCO BUT ALCOHOL TAX REVENUES HAVE REMAINED STAGNANT SINCE THE LATE 1980S BUT MORE OMINOUS EFFECTS OF THESE TRENDS ARE BECOMING APPARENT NEW POLICE POWERS HAVE BEEN OR ARE IN THE PROCESS OF BEING INTRODUCED AGAINST SUSPECTED SMUGGLERS FOR EXAMPLE AN AMENDMENT TO ONTARIO'S TOBACCO TAX ACT WOULD GIVE POLICE THE POWER TO SEARCH PRIVATE CARS WITHOUT A WARRANT OR EVEN AGAINST INDIVIDUALS FOUND IN POSSESSION OF SMUGGLED TOBACCO STEEP FINES IN QUEBEC OFFICER MICHEL BRUNET OF THE QUEBEC PROVINCIAL POLICE CONCEDES THAT SMUGGLING CAN NEVER BE TOTALLY ERADICATED THERE WILL ALWAYS BE BANK ROBBERS HE SAYS OF COURSE NOT ALL CANADIANS WOULD ARGUE THAT SMUGGLING SHOULD BE RANKED WITH BANK ROBBERY AS A MATTER OF FACT CONFISCATORY TAXATION IS A MUCH MORE LIKELY CANDIDATE FOR THE COMPARISON THE UNDERGROUND ECONOMY IS ACTUALLY A USEFUL BUILTIN RESTRAINT TO THE FISCAL APPETITES AND POWER HUNGER OF LEVIATHAN IF THE CITIZEN DID NOT HAVE THIS ESCAPE HATCH HE WOULD BE MUCH EASIER PREY FOR THE RULERS THIS IS NOT TO SAY THAT THE UNDERGROUND ECONOMY RELEASES ALL THE PRESSURE OF AN OVERTAXED AND OVERREGULATED ECONOMY AND THUS ESTABLISHES AN ACCEPTABLE EQUILIBRIUM TO SUCH A SOCIETY SMUGGLING REMAINS A SYMPTOM OF A SICK SOCIETY NOT A HEALTHY ONE CONFISCATORY TAXES AND GALLOPING REGULATION DESTROY PUBLIC MORALITY WHILE CANADIANS MAY BE MORALLY JUSTIFIED IN RESISTING STATE INTRUSION BY RETREATING TO THE UNDERGROUND ECONOMY THE DANGER IS THAT THESE JUSTIFIED CHEATING HABITS AGAINST GOVERNMENT WILL SPREAD TO OTHER FIELDS CANADA WOULD NOT BE THE FIRST INSTANCE WHERE A TYRANNY DESTROYS PUBLIC MORALITY LET ALL REVENUE MINISTERS OF THE WORLD HEAR THE FOLLOWING SEGMENT FROM A 1923 SPEECH BEFORE THE ITALIAN SENATE BY PRIME MINISTER BENITO MUSSOLINI THE GOVERNMENT HAS BEEN COMPELLED TO LEVY TAXES WHICH UNAVOIDABLY HIT LARGE SECTIONS OF THE POPULATION THE ITALIAN PEOPLE ARE DISCIPLINED SILENT AND CALM THEY WORK AND KNOW THAT THERE IS A GOVERNMENT WHICH GOVERNS AND KNOW ABOVE ALL THAT IF THIS GOVERNMENT HITS CRUELLY CERTAIN SECTIONS OF THE ITALIAN PEOPLE IT DOES SO NOT OUT OF CAPRICE BUT FROM THE SUPREME NECESSITY OF NATIONAL ORDER I WROTE TO THE CANADIAN MINISTER OF REVENUE SUGGESTING THAT MUSSOLINI WOULD CERTAINLY UNDERSTAND HIS FISCAL PROGRAM HE HAS NOT YET REPLIED MR LEMIEUX IS AN ECONOMIST AUTHOR AND VISITING PROFESSOR AT THE UNIVERSITY OF QUEBEC IN HULL 9404080077 940408 MARKETING & MEDIA ADVERTISING NIKE HEWLETT ESCHEW TRADITIONAL IN NEW SALES PITCHES FOR PRODUCTS BY KEVIN GOLDMAN CAN ADS SELL A PRODUCT WITHOUT HAWKING A BRAND NAME OR PRAISING ITS ATTRIBUTES AT LEAST TWO MAJOR ADVERTISERS APPEAR TO THINK SO THOUGH THEY HAVE LITTLE ELSE IN COMMON NIKE AND HEWLETTPACKARD ARE BOTH AIRING TV COMMERCIALS WITH A SIMILAR DISDAIN FOR THE TRADITIONAL SALES PITCH IN NIKE'S NEW ADS THE ATHLETIC FOOTWEAR AND APPAREL COMPANY DOESN'T EVEN USE ITS NAME HEWLETTPACKARD'S NEW COMMERCIALS FOR LASER PRINTERS BARELY SHOW THE PRODUCT AND DON'T BOTHER TO DISCUSS ITS CAPABILITIES BOTH COMPANIES SHARE ONE TRAIT THEY ARE LEADERS IN THEIR MARKETS AND CAN AFFORD TO TAKE CHANCES THAT VIEWERS WILL PERK UP FOR UNUSUAL ATTENTIONGETTING ADS THAT SELL MORE ATTITUDE THAN ANYTHING ELSE NIKE HAD STRONG ATHLETIC FOOTWEAR SALES IN 1993 OF 195 BILLION LEADING THE 62 BILLION CATEGORY ACCORDING TO SPORTING GOODS INTELLIGENCE NEWSLETTER IN GLEN MILLS PA A RISE OF 77 OVER THE PREVIOUS YEAR AND IN THE 59 BILLION LASERPRINTER CATEGORY HEWLETTPACKARD IS NO 1 ACCORDING TO BIS STRATEGIC DECISIONS A MARKET RESEARCH FIRM IN NORWELL MASS BIS DIDN'T HAVE EXACT SALES FIGURES FOR EACH COMPANY IN THE CATEGORY NIKE'S CAMPAIGN TAKES THE BIGGEST GAMBLE THE ONLY CLUE THAT NIKE IS THE PRODUCT IN SEVEN NEW TELEVISION COMMERCIALS IS ITS LOGO WHICH RESEMBLES AN ELONGATED CHECK MARK THE NAME NIKE ISN'T SEEN AT ALL EACH AD SHOWS A NEW YORK STREET SCENE RANGING FROM AN OPEN MANHOLE WHERE THE LOGO IS PLACED AS GRAFFITI ON A BARRIER TO A NEIGHBORHOOD BODEGA WITH THE LOGO ON THE ANTITHEFT SECURITY GATE AND INCLUDES A MONOLOGUE ABOUT LIFE IN MANHATTAN HA HA HA BASKETBALL IS THE THING IN THE CITY THE VOICEOVER BEGINS NOT FOOTBALL NOT BASEBALL NOT SOCCER NOT HOCKEY IT'S A BLIZZARD OUT THERE AND YOU DON'T SEE NOBODY IN THE CITY PLAYING FOOTBALL THE NIKE ADS WHICH ARE ONLY BEING SEEN IN THE NEW YORK MARKET ON SHOWS SUCH AS NBC'S SATURDAY NIGHT LIVE AND ON CABLE'S MSG SPORTS NETWORK SPEAK TO THE CITY AND ITS PASSION FOR BASKETBALL SAYS A SPOKESMAN FOR THE BEAVERTON ORE COMPANY THE PURPOSE OF THE CAMPAIGN IS TO CONTINUE INNOVATIVE AND CREATIVE ADVERTISING THE SPOKESMAN SAYS THE ADS FROM NIKE'S AGENCY WIEDEN & KENNEDY AREN'T RISKY GIVEN THE CONTEXT THAT THE NIKE LOGO IS SO WELL KNOWN INDEED STEPHEN A GREYSER PROFESSOR OF MARKETING AT THE HARVARD BUSINESS SCHOOL SAYS HE BELIEVES THE NIKE ADS ARE DIRECTED TO PEOPLE WHO KNOW ABOUT NIKE ALREADY THE ADS ARE SAYING WITH A WINK AND A NOD THAT THE COMPANY IS SO IN' SO HIP IT DOESN'T HAVE TO IDENTIFY ITSELF TO THOSE IN THE KNOW IF YOU DON'T GET THE AD NIKE IS SAYING IT DOESN'T WANT YOU AS A CUSTOMER MR GREYSER SAYS THE ADS CARRY SOME RISK THAT CASUAL TELEVISION VIEWERS WILL BE MORE MYSTIFIED THAN MOTIVATED TO BUY A NIKE PRODUCT HAL ROSS PRESIDENT OF MAPES & ROSS A PRINCETON NJ COMMUNICATIONSRESEARCH COMPANY SAYS THE NIKE AD VIOLATES A BASIC RULE OF MARKETING HOWEVER A VIEWER SHOULD BE ABLE TO TELL WHAT THE SPOT IS ABOUT EVEN IF THE SOUND IS TURNED DOWN ADVERTISERS ARE TRYING SO HARD TO BE DIFFERENT SAYS MR ROSS IT ALMOST NEVER WORKS TO TEASE OR PUZZLE SOMEONE IT IS WRONG FOR AN ADVERTISER TO THINK A TV VIEWER IS SITTING AT HOME WAITING TO BE CHALLENGED BY A COMMERCIAL BUT NIKE SAYS THE ADS ARE INDEED TARGETING THOSE WHO ARE ALREADY FAMILIAR WITH ITS SOCALLED SWOOSH LOGO AND THE COMPANY FEELS THE SPOTS ARE A PERFECT COMPLEMENT TO MANHATTAN'S INNERCITY CHARACTER IN ADDITION NIKE SAYS IT HAS NO PLANS TO PRODUCE SEPARATE ADS FOR OTHER CITIES OUR ADS WILL CONTINUE TO BE A MIX OF BRANDORIENTED AND PRODUCTSPECIFIC SAYS THE SPOKESMAN FOR INSTANCE NIKE IS CONCENTRATING ON MARKETING A NEW SHOE AIR DARWIN WITH COMMERCIALS FEATURING SAN ANTONIO SPURS FORWARD DENNIS RODMAN WHEREAS NIKE IS TAKING THE CONCEPT OF SUBLIMINAL ADVERTISING TO THE EDGE IN AT LEAST ONE OF THE COMMERCIALS ONE HAS TO LITERALLY STRAIN TO FIND THE LOGO HEWLETTPACKARD IS LESS DARING AT LEAST ITS LASERPRINTER MAKES A CAMEO IN TWO OF THE FOUR SPOTS FROM SAATCHI & SAATCHI IN SAN FRANCISCO THE COMMERCIALS ARE INTERVIEWS WITH HURRIED INDIVIDUALS WHO USE THE LASER PRINTER INSTEAD OF RELYING ON TRADITIONAL TECHNIQUES SUCH AS DEMONSTRATING THE EQUIPMENT OR COMPARING ITS USAGE WITH A COMPETITOR'S PRODUCT HEWLETTPACKARD USES ACTORS PORTRAYING CUSTOMERS SOME OF WHOM ARE FRAZZLED AND OTHERS WHO HAVE CHIPS ON THEIR SHOULDERS AS PEOPLE BECOME MORE SOPHISTICATED AND COMFORTABLE WITH TECHNOLOGY THEY ARE MORE INTERESTED IN WHAT THE EQUIPMENT CAN DO FOR THEM AND LESS INTERESTED IN HOW IT WORKS SAYS ARLENE KING A MARKETING COMMUNICATIONS MANAGER FOR HEWLETTPACKARD YET THE CAMPAIGN IS STIRRING UP SOME CONVERSATION INTERNALLY SHE SAYS SOME PEOPLE WITHIN HEWLETTPACKARD ARE SOMEWHAT UNCOMFORTABLE WITH THE DIRECTION OF THE CAMPAIGN BECAUSE WE ARE A HIGHTECH COMPANY AND THE ADS DON'T FOCUS ON ANY ASPECT OF THE TECHNOLOGY INDEED ONE AD SHOWS A BESPECTACLED YUPPIE IMPATIENTLY SHIFTING IN HIS CHAIR WHILE VERBALLY SPARRING WITH HIS UNSEEN INTERVIEWER WHO ASKS DO YOU HAVE TIME FOR A COUPLE OF QUESTIONS THE QUICK RETORT SHORT ONES WHAT DO YOU THINK ABOUT YOUR LASERJET PRINTER I DON'T COMES THE HOSTILE RESPONSE EVER LASERPRINTERS WORK WHAT IS THERE TO THINK ABOUT AND SO ON WE WANTED TO SHOW THESE ARE BUSY PEOPLE WITH A GREAT DEAL ON THEIR MINDS AND THE PRINTER IS LOW ON THEIR LIST OF PRIORITIES SAYS ROB INGALIS EXECUTIVE VICE PRESIDENT AND CREATIVE DIRECTOR AT SAATCHI & SAATCHI'S SAN FRANCISCO OFFICE MOST PEOPLE DON'T WANT TO THINK ABOUT A PRINTER THEY WANT IT TO WORK IN THE OFFICE AND AT HOME PERIOD BUT MR ROSS SAYS HE DOUBTS HEWLETTPACKARD IS SENDING THAT MESSAGE EFFECTIVELY BECAUSE MOST PEOPLE WOULD FIND THE PRINTER USERS PORTRAYED IN THE COMMERCIALS OBNOXIOUS VIEWERS CAN GET TURNED OFF BY THE ATTITUDE OF THOSE WORKERS IN THE COMMERCIALS HE SAYS ACCOUNT D'ARCY MASIUS BENTON & BOWLES'S ST LOUIS OFFICE HAS WON ADDITIONAL BUSINESS FROM CLIENT BLOCKBUSTER ENTERTAINMENT CORP CREATING LOCAL ADVERTISING FOR BLOCKBUSTER STORES IN 15 CITIES ESTIMATED CONSOLIDATED BILLINGS ARE 25 MILLION DMB&B SAID AGENCIES INCLUDING INTERPUBLIC GROUP'S LINTAS AND BERNSTEINREIN PREVIOUSLY HANDLED THE BUSINESS DMB&B SAID WHO'S NEWS JOHN FITZGERALD VICE CHAIRMAN CHIEF OPERATING OFFICER OF NORTH AMERICAN OPERATIONS AT INTERPUBLIC GROUP'S MCCANNERICKSON WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MCCANN'S JAPANESE UNIT A SUCCESSOR TO MR FITZGERALD 47 WASN'T NAMED NAME CHANGE GOODBY BERLIN & SILVERSTEIN A SAN FRANCISCO UNIT OF OMNICOM GROUP SAID IT IS CHANGING ITS NAME TO GOODBY SILVERSTEIN & PARTNERS ANDY BERLIN WHO LEFT THE COMPANY IN 1992 NOW HEADS ANOTHER OMNICOM AGENCY BERLIN WRIGHT CAMERON IN NEW YORK NIKE LIZ DOLAN VICE PRESIDENT OF COMMUNICATIONS AT NIKE INC WAS NAMED VICE PRESIDENT OF MARKETING MS DOLAN REPLACES ANDY MOONEY WHO WAS NAMED DIRECTOR OF NEW BUSINESS DEVELOPMENT A NEW POSITION 9404080076 940408 TEST OF AZT BACKS CRITICISM OF EARLY USE LATEST DATA DASH HOPES OF WELLCOME FOR CHANGE IN TENTATIVE RESULTS BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL THE LONGAWAITED FINAL VERSION OF A ANGLOFRENCH CLINICAL TRIAL OF WELLCOME PLC'S AIDS MEDICINE RETROVIR REAFFIRMED CRITICISM OF EARLY TREATMENT OF ASYMPTOMATIC PATIENTS INFECTED WITH HIV INITIAL RESULTS OF THE SOCALLED CONCORDE TRIAL PREVIEWED IN BRITISH MEDICAL JOURNAL THE LANCET A YEAR AGO FOUND NO BENEFITS FROM SUCH EARLY TREATMENT WITH RETROVIR KNOWN AS AZT THE NEWS HAMMERED WELLCOME STOCK AND SENT RETROVIR SALES PLUMMETING PARTICULARLY IN THE US WHERE EARLY TREATMENT FOR HIV WAS MOST WIDESPREAD WELLCOME OFFICALS CHALLENGED THOSE TENTATIVE RESULTS CLAIMING THAT CHANGES OF METHODOLOGY MIDWAY IN THE TRIAL HAD SKEWED THE OUTCOME BUT PUBLICATION OF COMPLETE DATA IN THE LANCET'S LATEST ISSUE DASHED ANY REMAINING HOPES THE BRITISH COMPANY HAD OF OVERTURNING CONCORDE'S PRELIMINARY CONCLUSIONS WELLCOME'S REPRESENTATIVES ON THE TRIAL'S COORDINATING COMMITTEE STILL DECLINED TO ENDORSE THE FINAL REPORT BUT A SPOKESMAN ACKNOWLEDGED THE COMPANY WASN'T ARGUING WITH ANY OF CONCORDE'S DATA IT'S JUST THAT WE'RE UNABLE TO SUPPORT SOME OF THE CONCLUSIONS THEY'VE DRAWN THE OFFICIAL PUBLICATION DATE OF THE LATEST ISSUE OF THE LANCET IS TOMORROW WELLCOME SHARES STILL SLIPPED 725 PENCE TO 555 3/4 PENCE 816IN LONDON TRADING YESTERDAY AND COULD DROP FURTHER TODAY ONCE THE CONCORDE RESULTS ARE WIDELY CIRCULATED NEVERTHELESS THE WELLCOME SPOKESMAN INSISTED WELLCOME CONTINUES TO BELIEVE IN THE VALUE OF EARLY THERAPY WITH RETROVIR AS A WAY TO DELAY DISEASE PROGRESSION IN ASYMPTOMATIC PEOPLE INFECTED WITH THE AIDS VIRUS RETROVIR IS UNQUESTIONABLY THE BEST WEAPON CURRENTLY AVAILABLE AND WHILE BENEFITS MAY NOT LAST AS LONG AS WE WOULD LIKE RETROVIR IS EFFECTIVE IN EXTENDING A PATIENT'S PERIOD OF DISEASEFREE LIFE THE COMPANY DECLARED IN A STATEMENT DATA FROM CONCORDE CERTAINLY DON'T BUTTRESS SUCH CLAIMS BY FAR THE BIGGEST CLINICAL TRIAL TO DATE TESTING EARLY THERAPY WITH RETROVIR CONCORDE EXAMINED 1749 SYMPTOMFREE PEOPLE IN THE UK AND FRANCE INFECTED WITH THE HUMAN IMMUNODEFICIENCY VIRUS WHICH CAUSES AIDS HALF RECEIVED RETROVIR AND HALF GOT A PLACEBO OR DUMMY DRUG UNTIL THE ONSET OF SYMPTOMS WHEN THEY THEN SWITCHED TO RETROVIR AFTER THREE YEARS THE SURVIVAL RATE WAS 92 IN THE EARLYTREATMENT GROUP AND 94 IN THE DEFERREDTREATMENT GROUP THE RATE OF PROGESSION TO AIDS OR DEATH WAS 18 IN BOTH GROUPS INVESTIGATORS REPORTED A BENEFIT FROM IMMEDIATE THERAPY AFTER A YEAR'S PROGRESSION OF THE ILLNESS THE RESULTS OF CONCORDE DO NOT ENCOURAGE THE EARLY USE OF RETROVIR IN SYMPTOMFREE HIVINFECTED INDIVIDUALS THE STUDY CONCLUDED THE BOTTOM LINE IS THAT THERE IS A BENEFIT OF EARLY TREATMENT WITH RETROVIRBUT IT'S SMALL AND IT WEARS OFF SAID IAN WELLER A PROFESSOR AT UNIVERSITY COLLEGE LONDON MEDICAL SCHOOL AND PRINCIPAL INVESTIGATOR FOR THE BRITISH ARM OF CONCORDE DESPITE INITIAL CRITICISM FROM OTHER CLINICAL SCIENTISTS IN ADDITION TO WELLCOME OUR RESULTS HAVE STOOD THE TEST OF TIME DR WELLER SAID THE OPTIMUM TIME TO START RETROVIR THERAPY REMAINS UNCLEAR THE CONCORDE STUDY DECLARED QUALITYOFLIFE CONCERNS HAVE MOUNTED SINCE AUTHORS OF AN EARLIER US TRIAL WHICH OBTAINED FAVORABLE RESULTS FROM EARLY RETROVIR TREATMENT SUBSEQUENTLY WARNED OF EXTENSIVE SIDE EFFECTS OF TREATMENT IN A FOLLOWUP PAPER THAT QUALITYOFLIFE ASSESSMENT CITED SIDE EFFECTS EXPERIENCED BY ALMOST ALL PATIENTS THAT MAY BE SUFFICIENTLY DISTURBING TO OUTWEIGH THE GAIN ASSOCIATED WITH THE DELAY IN PROGRESSION OF THE DISEASE ESPECIALLY FOR ASYMPTOMATIC PATIENTS DR WELLER ADVISES ASYMPTOMATIC PATIENTS TO KEEP IN MIND THAT A POLICY OF CAREFUL WATCHING AND WAITING WHAT THE CONSERVATIVE PHYSICIAN ALWAYS DOES IS AS GOOD AS WRITING THAT PRESCRIPTION EARLY ON EVEN IN PATIENTS WHO HAVE DEVELOPED AIDS SYMPTOMS IT'S STILL NOT CLEAR HOW LONG RETROVIR REMAINS EFFECTIVE BUT THE RISKBENEFIT EQUATION IS SO MUCH TOWARD BENEFIT THAT YOU START IT HE SAID SOME ANALYSTS HAVE DISMISSED CONCORDE AS A TEST OF OUTMODED MONOTHERAPY OR TREATMENT WITH A SINGLE DRUG WHILE MOST SCIENTISTS TODAY BELIEVE A COMBINATION OF DIFFERENT DRUGS WILL BE MORE EFFECTIVE AND PREVENT THE AIDS VIRUS FROM DEVELOPING RESISTENCE TO MEDICINES THE WELLCOME SPOKESMAN FOR INSTANCE CITED RECENT AGREEMENTS THAT BROUGHT THE COMPANY ACCESS TO TWO NEW AIDS DRUGS BEING TESTED FOR USE TOGETHER WITH RETROVIR HOWEVER DR WELLER STRESSED THAT THE CLINICAL VALUE OF COMBINATION THERAPY REMAINS AS UNPROVEN AS EARLY TREATMENT OF ASYMPTOMATIC HIVPOSITIVE PATIENTS PRIOR TO CONCORDE WHAT WE'VE GOT NOW IS WHAT WE HAD WITH MONOTHERAPY EARLY ON PROMISING WORK IN THE LAB HE SAID BUT WE DON'T KNOW IF COMBINATION THERAPY HAS ANY CLINICAL EFFECT OR IF IT DOES MORE GOOD THAN HARM 9404080075 940408 ABREAST OF THE MARKET INDUSTRIALS TACK ON 1353 POINTS DESPITE INTERESTRATE CONCERNS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK PRICES TRACKED THE ACTION IN BONDS WITH BOTH MARKETS FINISHING NEAR THEIR SESSION HIGHS INVESTORS REMAIN WARY OF THE BOND MARKET AND THE PROSPECT OF STILLHIGHER INTEREST RATES TRADERS SAID BUT BONDS HAVE ESCAPED HEAVY SELLING SINCE MONDAY AND STOCK INVESTORS ARE INCHING BACK INTO THE MARKET THE DOW JONES INDUSTRIAL AVERAGE WHICH PLUMMETED 71 BETWEEN MARCH 24 AND LAST FRIDAY ADVANCED FOR A THIRD STRAIGHT SESSION IT GAINED 1353 POINTS OR 037 TO 369326 IT IS NOW ABOUT 140 POINTS OR 4 ABOVE ITS INTRADAY LOW OF MONDAY BROADBASED INDEXES ALSO ADVANCED AFTER A MIXED SHOWING WEDNESDAY ADVANCING ISSUES OUTPACED DECLINERS BY A SOLID 1370TO761 MARGIN ON THE NEW YORK STOCK EXCHANGE VOLUME MODERATED TO 287731000 SHARES FROM 300789000 WEDNESDAY VOLUME HADN'T BEEN BELOW THE HEAVY 300 MILLIONSHARE LEVEL SINCE MARCH 28 THE INDUSTRIAL AVERAGE TUMBLED MORE THAN 20 POINTS YESTERDAY MORNING AS THE TREASURY BOND MARKET RETREATED BUT BOTH MARKETS RECOVERED OVER THE BALANCE OF THE DAY THE 30YEAR SECURITY FINISHED WITH A GAIN OF 3/8 POINT TO YIELD 720 THE STANDARD & POOR'S 500 STOCK INDEX ADVANCED 283 OR 063 TO 45088 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 156 OR 063 TO 25022 AND THE DOW JONES EQUITY MARKET INDEX CLIMBED 265 OR 062 TO 42794 THE NASDAQ COMPOSITE INDEX MANAGED TO STAY IN POSITIVE GROUND NEARLY ALL DAY IT FINISHED WITH AN ADVANCE OF 445 OR 059 TO 75517 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX INCREASED 078 OR 018 TO 44176 RETAILING ISSUES JUMPED AFTER THE NATION'S MAJOR CHAINSTORE OPERATORS REPORTED STRONG MARCH SALES FIGURES WALMART CLIMBED 3/4 TO 26 5/8 GAP 2 1/4 TO 49 DAYTON HUDSON 1 5/8 TO 78 3/4 DILLARD DEPARTMENT STORES 2 1/4 TO 35 3/4 AND NINE WEST 2 1/8 TO 34 1/8 TANDY CORP THOUGH TUMBLED 3 5/8 TO 32 1/2 AFTER JOHN ROACH CHAIRMAN OF THE ELECTRONIC GOODS RETAILER ESTIMATED ITS FIRSTQUARTER EARNINGS WERE AT THE LOW END OF ANALYSTS' EXPECTATIONS ITS COMPUTER SALES WERE WEAK LAST MONTH PARTLY BECAUSE OF DELAYS IN DELIVERY OF SOME LAPTOP MODELS LEAR SEATING JUMPED TO 18 1/8 FROM ITS INITIAL OFFERING PRICE OF 15 1/2 A SHARE IN ITS FIRST DAY OF TRADING ON HEAVY VOLUME OF 45 MILLION SHARES THE 9375000SHARE OFFERING HAD BEEN EXPECTED TO FETCH 15 TO 17 A SHARE LEAR A MAKER OF CAR AND TRUCK SEATS WAS THE SUBJECT OF A LEVERAGED BUYOUT IN 1988 SUN MICROSYSTEMS RALLIED 3 1/8 TO 25 3/8 AFTER THE MAKER OF COMPUTER WORKSTATIONS REPORTED THIRDQUARTER EARNINGS OF 60 CENTS A SHARE UP FROM 47 CENTS A YEAR AGO MERRILL LYNCH UPGRADED ITS INTERMEDIATETERM RATING ON THE STOCK TO ABOVE AVERAGE FROM NEUTRAL AST RESEARCH INCREASED 2 1/4 TO 21 3/4 ON NASDAQ BEAR STEARNS ANALYST ANDREW J NEFF RAISED A RATING ON THE PERSONALCOMPUTER MAKER TO BUY FROM HOLD HE SAID DEMAND FOR PCS HAS ACCELERATED OTHER TECHNOLOGY STOCKS WERE MOSTLY HIGHER MICRON TECHNOLOGY INCREASED 4 3/4 TO 97 3/4 TEXAS INSTRUMENTS ADDED 1 1/8 TO 82 1/2 COMPAQ COMPUTER ROSE 1 3/4 TO 104 1/4 AND INTEL GAINED 1 TO 70 5/8 ON NASDAQ BANKING STOCKS SURGED ALONG WITH THE BOND MARKET EARNINGS IN THAT INDUSTRY ARE CLOSELY LINKED TO THE DIRECTION OF INTEREST RATES CHEMICAL BANKING WAS UP 1 5/8 TO 38 CHASE MANHATTAN 7/8 TO 33 5/8 BANKAMERICA 1 1/2 TO 41 3/8 AND FLEET FINANCIAL 1 1/2 TO 38 1/2 FIRST INTERSTATE BANCORP JUMPED 1 1/4 TO 79 5/8 WHILE WELLS FARGO INCREASED 3 TO 146 1/2 AS RUMORS RESURFACED THAT THE TWO CALIFORNIA BANKS WILL MERGE SPOKESMEN FOR THE COMPANIES DECLINED TO COMMENT ON THE TALK CASINO STOCKS RETOOK SOME OF THE GROUND LOST WEDNESDAY FOLLOWING NEWS THAT VOTERS IN MISSOURI HAD DEFEATED A STATE CONSTITUTIONAL AMENDMENT THAT WOULD HAVE APPROVED USE OF SLOT MACHINES ON RIVERBOAT GAMBLING FACILITIES THERE PROMUS WHICH LOST 3 1/4 WEDNESDAY WAS UP 1 TO 38 5/8 CAESARS WORLD WHICH SLIPPED 1 3/4 WEDNESDAY SURGED 3 1/4 TO 48 1/2 AMERICAN DEPOSITARY RECEIPTS OF COMPANIA DE TELEFONOS DE CHILE A CHILEAN TELEPHONE SERVICE COMPANY JUMPED 5 3/4 TO 94 1/4 STOCKS WERE SHARPLY HIGHER IN ITS HOME MARKET IN SANTIAGO RALPH BLOCH A MARKET STRATEGIST AT RAYMOND JAMES & ASSOCIATES SAID THE BROADBASED NATURE OF THE MARKET ADVANCE OVER THE PAST THREE SESSIONS HAS CONVINCED HIM THAT THE REBOUND IN STOCK PRICES WILL CONTINUE AND POSSIBLY EXPAND FOLLOWING RELEASE OF GOVERNMENT REPORTS ON INFLATION NEXT WEEK IN LOWQUALITY TECHNICAL RALLIES RALLIES THAT AREN'T GOING TO LAST BREADTH TENDS TO BE SLOPPY ALMOST FROM THE FIRST DAY AND CERTAINLY ON THE SECOND WE ARE GETTING THE EXACT OPPOSITE OF THAT NOW MR BLOCH SAID HE THINKS STOCKS WILL EDGE HIGHER EVEN BEFORE THE INFLATION REPORTS BUT JOHN SCHRAFF A TRADER AT DAIWA SECURITIES SAID MANY INVESTORS ARE WAITING FOR TUESDAY'S PRODUCER PRICE DATA AND WEDNESDAY'S CONSUMER PRICE DATA BEFORE DECIDING TO MAKE MAJOR NEW COMMITMENTS TO STOCKS EVERYONE IS WAITING FOR A SIGNAL FROM THAT NEWS HE SAID 9404080074 940408 BUSINESS BRIEF NABORS INDUSTRIES INC MITCHELL ENERGY SELLS RIGS FOR CASH STOCK WARRANTS NABORS INDUSTRIES INC SAID IT PURCHASED 16 OILFIELD DRILLING RIGS AND RELATED EQUIPMENT FROM MITCHELL ENERGY & DEVELOPMENT CORP FOR 9 MILLION AND 650000 TWOYEAR WARRANTS A SPOKESMAN FOR MITCHELL ENERGY SAID IT WILL RECEIVE AN ADDITIONAL AMOUNT OF AS MUCH AS 1 MILLION DEPENDING ON WHETHER IT EXERCISES THOSE WARRANTS OR NABORS INDUSTRIES CALLS THEM HE SAID THE WARRANTS ARE FOR PURCHASE OF NABORS INDUSTRIES' STOCK FOR 792 A SHARE THE STOCK WAS UNCHANGED YESTERDAY AT 6375 NABORS INDUSTRIES BASED IN HOUSTON SAID THE NEWLY ACQUIRED RIGS WHICH IT WILL MARKET PRIMARILY IN ITS GULF COAST SOUTHERN AND SOUTHWESTERN DISTRICTS BRING TO ABOUT 170 ITS NUMBER OF US LAND RIGS 9404080073 940408 TECHNOLOGY & HEALTH GROUP OF MAJOR COMPANIES IS EXPECTED TO OFFER GOODS SERVICES ON THE INTERNET BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAPITALISM IS COMING TO THE INTERNET A GROUP OF MAJOR PLAYERS INCLUDING HEWLETTPACKARD CO APPLE COMPUTER INC SUN MICROSYSTEMS INC LOCKHEED CORP AND BANK OF AMERICA A SUBSIDIARY OF BANKAMERICA CORP IS EXPECTED TO LAUNCH WHAT MAY BE THE FIRST LARGESCALE EFFORT TO TRANSACT BUSINESS ON THE INTERNET BY SEPTEMBER COMMERCENET WHICH IS TO BE ANNOUNCED EARLY NEXT WEEK PROMISES TO LET USERS PURCHASE GOODS AND SERVICES AND DO BANKING ONLINE COMMERCENET COULD ENABLE COMPANIES TO PLACE ORDERS WITH SUPPLIERS BID ON CONTRACTS AND COLLABORATE OVER THE NETWORK IN DESIGNING PRODUCTS ITS ORGANIZERS SAY THE OUTLOOK FOR BUSINESS ON THE INTERNET THE GLOBAL NETWORK OF COMPUTER NETWORKS IS VAST ASIDE FROM SEEING THE INTERNET'S 20 MILLION USERS AS AN UNCONQUERED MARKETPLACE COMPANIES CAN CUT COSTS AND TIME COMMERCENET HAS AN INITIAL INVESTMENT OF 12 MILLION HALF OF ITS FUNDING WILL COME FROM THE GOVERNMENT BUT THE MONEY INVESTED HAS NOTHING TO DO WITH THE IMPACT ON THE MARKET SAYS BOB FRANK PROJECT LEADER OF LAWRENCE LIVERMORE NATIONAL LABORATORY A MEMBER OF THE GROUP CURRENTLY NO COMMERCIAL ONLINE SERVICES ARE AS LARGE OR FOSTER THE KIND OF BUSINESS OPERATIONS COMMERCENET ORGANIZERS HAVE IN MIND ORGANIZERS SAY THE SERVICE WILL BEGIN WITH ABOUT 50 COMPANIES INITIALLY FOCUSING ON THE HIGHTECH ARENA BUT IN SHORT ORDER PIZZA PARLORS AND REALESTATE AGENTS ARE GOING TO PUT THEIR INFORMATION ON LINE INSISTS MARTIN TENENBAUM CHIEF EXECUTIVE OF ENTERPRISE INTEGRATION TECHNOLOGIES A CALIFORNIA CONSULTING COMPANY THAT IS MANAGING THE PROJECT FOR EXAMPLE A COMPUTER MANUFACTURER COULD SOLICIT BIDS ON THE NETWORK FOR COMPUTER CHIPS AWARD A CONTRACT AND PURCHASE THOSE CHIPS ONLINE SELLING THE FINISHED PRODUCTS TO CUSTOMERS OVER THE NETWORK HE CLAIMS BUSINESS CAN EXPERIENCE A 10 REDUCTION IN PRODUCT COSTS AND AN 80 REDUCTION IN THE TIME IT TAKES TO ORDER PRODUCTS BECAUSE OF THE SPEED OF NETWORK COMMUNICATIONS ADDITIONALLY BUSINESSES WILL BE ENCOURAGED TO COORDINATE PRODUCTION OF GOODS VIA THE INTERNET INCLUDING CONTACTING VENDORS AND SCHEDULING PRODUCTION CYCLES COMMERCENET ALSO HOPES TO PROVIDE BROKERAGE AND NOTARY SERVICES TO ENABLE FINANCIAL TRANSACTIONS TO TAKE PLACE OVER THE NETWORK THE SERVICE WILL USE MOSAIC SOFTWARE THAT WILL BE PRIVACY ENHANCED OR ENCRYPTED TO PROTECT SENSITIVE INFORMATION SUCH AS CREDITCARD NUMBERS MYLES TRACHTENBERG MANAGER OF TECHNOLOGY SERVICES FOR CHASE MANHATTAN BANK SAYS SUCH SECURITY METHODS ARE NECESSARY IN THE ORGANIZED CHAOS OF THE INTERNET WHILE CHASE WILL PROVIDE INFORMATION ABOUT ITS BANKING PRODUCTS ON THE SYSTEM IT AND OTHERS SUCH AS BANK OF AMERICA ARE TAKING A WAITANDSEE ATTITUDE BEFORE THEY ROLL OUT TRANSACTIONS ONLINE CITIBANK FOR EXAMPLE HOPES TO PROVIDE PAYMENT SUPPORT FOR THE ONLINE CATALOGS THAT MANY EXPECT WILL FLOOD THE SERVICE THIS IS THE FIRST INDUSTRIAL PARK IN CYBERSPACE SAYS DANIEL P DERN AUTHOR OF THE NEW USERS GUIDE TO THE INTERNET 9404080072 940408 BUSINESS BRIEF GM FINES ARE UPHELD BUT REDUCED BY OSHA ADMINISTRATIVE LAW JUDGE WASHINGTON AN ADMINISTRATIVE LAW JUDGE UPHELD NEARLY 2 MILLION IN FINES AGAINST GENERAL MOTORS CORP IN CONNECTION WITH THE 1991 DEATH OF A WORKER IN THE AUTO MAKER'S OKLAHOMA CITY PLANT THE RULING BY STANLEY SCHWARTZ AN ADMINISTRATIVE JUDGE FOR THE OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION REDUCED THE SIZE OF GM'S LIABILITY FROM THE 28 MILLION PROPOSED IN 1991 BY THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION EVEN WITH THE REDUCTION THE FINE IS THE LARGEST EVER AWARDED TO OSHA BY AN ADMINISTRATIVE LAW JUDGE SAID OSHA CHIEF JOSEPH DEAR MR SCHWARTZ SAID HE PLANS TO FILE HIS DECISION APRIL 19 WITH THE SAFETY COMMISSION AFTER THAT GM HAS 30 DAYS TO APPEAL TO THE COMMISSION IF IT LOSES THAT STEP THE COMPANY COULD APPEAL FURTHER TO THE US COURT OF APPEALS GM DISAGREES WITH THE DECISION AND WILL CONSIDER ITS NEXT STEP IN THE MATTER AFTER A DETAILED REVIEW OF THE DECISION SAID BOB VERVINCK PERSONNEL DIRECTOR AT THE OKLAHOMA CITY ASSEMBLY PLANT HE SAID THE COMPANY SHOWED DURING THE TRIAL THAT THE PLANT HAD MADE SIGNIFICANT PROGRESS IN HEALTH AND SAFETY EFFORTS THE HEALTH AND SAFETY OF ITS EMPLOYEES REMAINS GENERAL MOTORS' CONCERN IN APRIL 1991 DON SMITH AN EMPLOYEE WORKING ON A CONVEYOR LINE DIED OF HEAD INJURIES SUFFERED WHEN A PNEUMATIC LIFT UNEXPECTEDLY STARTED RUNNING OSHA ACCUSED GM OF VIOLATING THE SOCALLED LOCKOUT/TAGOUT RULE WHICH REQUIRES EMPLOYERS TO USE LOCKS TO ENSURE THAT MACHINES BEING SERVICED CAN'T BE TURNED ON INADVERTENTLY OSHA ALLEGED THAT GM FAILED TO CREATE EFFECTIVE LOCKOUT/TAGOUT PROCEDURES AT THE PLANT AND FAILED TO TRAIN WORKERS AND SUPERVISORS IN THE PROCEDURES THE AGENCY CITED GM FOR WILLFUL VIOLATION OF SAFETY LAWS AND FOR THE FIRST TIME ATTEMPTED TO IMPOSE MAXIMUM PENALTIES ALLOWED IN EGREGIOUS CASES MR SCHWARTZ AGREEING THAT THE CASE WAS EGREGIOUS UPHELD 43 OF THE 57 ALLEGED WILLFUL VIOLATIONS OF THE LOCKOUT/TAGOUT STANDARD HE CALLED THE ATTITUDE AT THE PLANT A FLAGRANT DISREGARD OF THE STANDARD MR SCHWARTZ ALSO SAID IT IS CLEAR BASED ON EMPLOYEE TESTIMONY THAT MANAGEMENT WAS AWARE EMPLOYEES WERE NOT LOCKING OUT 9404080071 940408 BUSINESS BRIEF PECHINEY INTERNATIONAL SA A STAKE OF 40 IS ACQUIRED IN ITALIAN PACKAGER CAPOLO FRENCH ALUMINUM AND PACKAGING GROUP PECHINEY INTERNATIONAL SA SAID IT HAS STRENGTHENED ITS FOOTHOLD IN THE ITALIAN PACKAGING MARKET BY ACQUIRING A 40 INTEREST IN CAPOLO ITALY'S LEADING INDUSTRIAL PACKAGING CONCERN THE REMAINDER OF CAPOLO'S CAPITAL IS HELD BY THE COMPANY'S MANAGEMENT PECHINEY ACQUIRED ITS SHARES FROM INSTITUTIONAL AND OTHER INVESTORS CAPOLO HAD SALES OF 270 BILLION LIRE 1633 MILLION IN 1993 AND EMPLOYS 800 PEOPLE IN SEVEN FACTORIES PECHINEY ALREADY HAS TWO PACKAGING UNITS IN ITALY ITS NATIONAL CAN ITALIANA SUBSIDIARY MANUFACTURES STEEL CANS AT A PLANT NEAR NAPLES AND ITS PECHINEY PACKAGING ALIMENTARE PRODUCES ALUMINUM PACKAGING FOR THE FOOD INDUSTRY 9404080070 940408 MARKETING & MEDIA TCI ANNOUNCES 100 MILLION CENTER FOR DIGITAL SERVICE BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL TELECOMMUNICATIONS INC UNVEILED A 100 MILLION DIGITALCOMPRESSION CENTER WHICH WILL ALLOW TCI AND OTHER CABLE OPERATORS TO EXPAND CHANNEL CAPACITY THE NEW FACILITY DUBBED THE NATIONAL DIGITAL TELEVISION CENTER PROMISES TO OFFER AN ARRAY OF PROGRAMMING IN DIGITAL FORM TO CABLE SYSTEMS PARTICULARLY SMALL OPERATORS IN RURAL AREAS THE CENTER WILL BE ABLE TO TRANSMIT AS MANY AS 10 COMPRESSED DIGITAL CHANNELS ON THE SPACE OF ONE ANALOG CHANNEL TCI DENVER SAID THE CENTER WILL HAVE THE CAPACITY TO OFFER MORE THAN 300 DIFFERENT SERVICES ALTHOUGH THAT MUCH PROGRAMMING WON'T BE AVAILABLE FOR SEVERAL YEARS IN ADDITION EACH LOCAL CABLE SYSTEM WILL DECIDE WHAT IT WANTS TO OFFER CUSTOMERS STILL SAID A TCI SPOKESMAN THE PROBLEM OF LIMITED CHANNEL CAPACITY IS GOING TO DISAPPEAR OVER A PERIOD OF TIME TCI THE NATION'S LARGEST CABLE OPERATOR CALLED THE CENTER AN INDISPENSABLE ELEMENT IN ITS PLAN TO CONSTRUCT INTERACTIVE FULLSERVICE NETWORKS AND SAID THE CENTER WOULD PERMIT MANY CABLE OPERATORS TO JOIN THE DIGITAL AGE SOONER AND CHEAPER THAN BY UPGRADING THEIR OWN SYSTEMS TCI DECLINED TO SAY HOW MUCH IT WOULD CHARGE FOR THE NEW SERVICE BUT THE NEW CENTER WON'T HAVE ANY CUSTOMERS UNTIL 1995 WHEN A NEW GENERATION OF DIGITAL TVSETTOP BOXES BECOMES AVAILABLE FROM MANUFACTURERS MOREOVER THE NEW BOXES WILL BE EXPENSIVE AT FIRST AND CABLE OPERATORS ARE EXPECTED TO ROLL THEM OUT SLOWLY GENERAL INSTRUMENT CORP SCIENTIFICATLANTA INC AND HEWLETTPACKARD CO ARE EXPECTED TO MANUFACTURE SUCH SETTOP BOXES FOR THE INDUSTRY USING TECHNOLOGY LICENSED FROM GENERAL INSTRUMENT PREVIOUSLY THE JUSTICE DEPARTMENT WAS CONCERNED WITH EXCLUSIVE ARRANGEMENTS IN CONTRACTS BETWEEN TCI AND GENERAL INSTRUMENT BUT TCI SAID YESTERDAY THAT IT HAD FORGONE ANY AND ALL EXCLUSIVE PROVISIONS WITH GENERAL INSTRUMENT TECHNOLOGY THAT MAY HAVE EXISTED TCI ALSO SAID IT HAD ALREADY REACHED AGREEMENTS IN PRINCIPLE WITH TWO GROUPS OF INDEPENDENT CABLE COMPANIES FOR THE CENTER'S SERVICE THE NATIONAL CABLE TELEVISION COOPERATIVE AND TELESYNERGY TCI HOPES THE NEW CENTER WITH ITS POTENTIALLY VAST PROGRAMMING RESOURCES WILL BLUNT THE COMPETITIVE IMPACT OF SOONTOCOME DIRECTBROADCASTSATELLITE SERVICES SUCH AS HUGHES COMMUNICATIONS INC'S DIRECTTV AND US SATELLITE BROADCASTING CO WHICH WILL SOON DELIVER TV PROGRAMMING TO DISHES THE SIZE OF A PIZZA PAN HUGHES IS A SUBSIDIARY OF GENERAL MOTORS CORP IN A FEDERAL ANTITRUST SUIT FILED AGAINST TCI BY VIACOM INC IN SEPTEMBER VIACOM CHARGED THAT THE CENTER WAS THE CORNERSTONE OF AN EFFORT BY TCI TO MONOPOLIZE THE DISTRIBUTION OF PROGRAMMING VIACOM WHICH OWNS THE CABLE CHANNELS MTV AND NICKELODEON SAID TCI COULD REFUSE TO DISTRIBUTE ANY PROGRAMMING SERVICE THAT IS NOT UPLINKED AND DELIVERED THROUGH THE CENTER BUT A TCI SPOKESMAN SAID THE CHARGE WAS EMPTY AND WAS MADE DURING THE BATTLE FOR PARAMOUNT COMMUNICATIONS INC WHEN TCI WAS BELIEVED TO BE BACKING VIACOM'S RIVAL QVC NETWORK INC 9404080069 940408 FOR THE PUBLIC GOOD BIG LAW FIRM WORKS FREE TO SEEK JUSTICE IN 71YEAROLD CASE FLORIDA'S HOLLAND & KNIGHT SPOTLIGHTS GROWING ROLE OF PRO BONO LEGAL WORK A TOWN REDUCED TO ASHES BY ERIC MORGENTHALER STAFF REPORTER OF THE WALL STREET JOURNAL TALLAHASSEE FLA ON NEW YEAR'S DAY OF 1923 A WHITE WOMAN IN THE TOWN OF SUMNER NEAR FLORIDA'S WEST COAST SAID SHE HAD BEEN ASSAULTED BY A BLACK MAN A POSSE WAS FORMED WITH BLOODHOUNDS AND WITHIN A DAY OR TWO A BLACK MAN HAD BEEN LYNCHED FOR SUPPOSEDLY HELPING THE ASSAILANT GET AWAY OVER THE NEXT FEW DAYS THE INCIDENT DEGENERATED INTO AN ALLOUT ATTACK BY WHITES ON A BLACK COMMUNITY CALLED ROSEWOOD THREE MILES EAST OF SUMNER AT LEAST SEVEN MORE PEOPLE WERE KILLED FIVE BLACKS TWO WHITES AND ROSEWOOD WAS REDUCED TO ASHES THROUGH IT ALL FLORIDA OFFICIALS LOOKED THE OTHER WAY THERE WAS NOTHING AND NO ONE THE SURVIVORS COULD TURN TO SAYS ARNETT DOCTOR WHOSE GREATGRANDMOTHER WAS KILLED IN THE TRAGEDY WHICH HIS MOTHER AND OTHER RELATIVES LIVED THROUGH THE STATE THE COUNTY THERE WAS NO ONE ABSOLUTELY NO ONE THEY COULD TURN TO TO HAVE THIS SITUATION ADDRESSED THE SURVIVORS FLED ROSEWOOD A TINY COMMUNITY OF ABOUT 120 PEOPLE NEVER TO RETURN MANY WERE SO FRIGHTENED THEY WARNED THEIR CHILDREN NEVER TO SPEAK OF THE INCIDENT TO OUTSIDERS BUT IN THE PAST COUPLE OF YEARS AFTER DECADES OF NEGLECT THE ROSEWOOD FAMILY AS SURVIVORS AND HEIRS OFTEN CALL THEMSELVES HAS FINALLY GOTTEN THE ATTENTION OF STATE OFFICIALS THE REASON REFLECTS A CHANGE IN THE POWER BALANCE OF A SORT THAT WOULD HAVE BEEN UNTHINKABLE IN 1923 ROSEWOOD'S CAUSE HAS BEEN TAKEN UP BY THE BIGGEST LAW FIRM IN FLORIDA THE FIRM IS HOLLAND & KNIGHT WHICH HAS OFFICES THROUGHOUT THE STATE AND IN WASHINGTON IT HAS THE REGION'S MOST EXTENSIVE PROGRAM FOR HANDLING PUBLICINTEREST CASES AND IN LATE 1992 IT AGREED TO REPRESENT THE ROSEWOOD FAMILY WITHOUT CHARGE ITS EFFORTS SPOTLIGHT THE IMPORTANCE OF PRO BONO LEGAL WORK FROM THE LATIN PRO BONO PUBLICO MEANING FOR THE PUBLIC GOOD IN GIVING A VOICE TO PEOPLE OUTSIDE THE SYSTEM THERE'S NO QUESTION THAT WHEN THE STATE'S LARGEST LAW FIRM GOT BEHIND THE FAMILY IT WAS SUDDENLY A VERY SERIOUS MATTER SAYS STEPHEN F HANLON A PARTNER IN HOLLAND & KNIGHT'S OFFICE HERE IN THE STATE CAPITAL WHO WORKS FULL TIME AS HEAD OF THE COMMUNITY SERVICES TEAM THE FIRM'S PRO BONO OPERATION TODAY THE FLORIDA SENATE IS EXPECTED TO APPROVE A CLAIMS BILL THAT WOULD COMPENSATE SURVIVORS OF THE ROSEWOOD MASSACRE AS THE INCIDENT HAS COME TO BE KNOWN THE BILL AS PASSED BY THE HOUSE LAST MONDAY WOULD AWARD UP TO 150000 EACH TO ROSEWOOD SURVIVORS OF WHOM FEWER THAN 10 ARE KNOWN TO BE LIVING IT ALSO WOULD ESTABLISH A 500000 FUND TO COMPENSATE FAMILIES FOR PROPERTY LOSS AND CREATE 25 SCHOLARSHIPS FOR NEEDY STUDENTS WITH PREFERENCE TO ROSEWOOD DESCENDANTS THE TOTAL COST IS LIMITED TO 21 MILLION GOV LAWTON CHILES SUPPORTS THE LEGISLATION HOLLAND & KNIGHT HAS KEPT A LOW PROFILE THROUGHOUT THE ROSEWOOD GOINGSON BUT THE 360LAWYER FIRM CONTRIBUTED SOME OF ITS HEAVIEST HITTERS INCLUDING MARTHA BARNETT ITS TOP LEGISLATIVE ATTORNEY WHO RECENTLY BECAME THE FIRST WOMAN ELECTED HEAD OF THE AMERICAN BAR ASSOCIATION'S HOUSE OF DELEGATES BY VIRTUALLY ALL ACCOUNTS THE FIRM'S ROLE HAS BEEN PIVOTAL THEY'VE DONE AN EXCELLENT JOB SAYS MIGUEL DE GRANDY A MIAMI REPUBLICAN WHO COSPONSORED THE BILL THEY WERE THE ONES WHO BROUGHT IT TO MY ATTENTION HAD IT NOT BEEN FOR THE CONSIDERABLE ECONOMIC RESOURCES THEY BROUGHT TO THE ISSUE I DON'T THINK WE COULD HAVE PUT IT TOGETHER MR DOCTOR THE ROSEWOOD LEADER SAYS SIMPLY I CANNOT THANK HOLLAND & KNIGHT ENOUGH THE LAWYERS HAVE DEVOTED A HUMONGOUS NUMBER OF HOURS TO THE CASE HE SAYS I CAN THINK OF DAYS WE STARTED AT 8 OR 9 IN THE MORNING AND ENDED AT 10 OR 11 AT NIGHT DAYS UPON DAYS LIKE THAT THE ROSEWOOD CASE IS UNUSUAL BUT THE IMPULSE BEHIND IT IS NOT THE IDEA THAT A LAWYER HAS A RESPONSIBILITY TO DO PUBLICSERVICE WORK FOR THE POOR IS A VENERABLE ONE BUT NOT EVERY LAWYER BUYS INTO IT AND THE LEVEL AND QUALITY OF PRO BONO WORK VARY WIDELY THERE ARE FIRMS THAT TALK ABOUT PRO BONO WORK AS BEING INVOLVED WITH THEIR SYMPHONY OR DOING FUND RAISING FOR UNITED WAY SAYS ESTHER LARDENT DIRECTOR OF THE ABA'S LAWFIRM PRO BONO PROJECT THOSE ARE NOT UNIMPORTANT ACTIVITIES BUT THEY'RE FUNDAMENTALLY NOT THINGS YOU HAVE TO BE A LAWYER TO DO AND THEY'RE ALSO THINGS THAT LOOK AWFULLY CLOSE TO BEING BUSINESS DEVELOPMENT HOWEVER MANY OF THE COUNTRY'S LEADING FIRMS HAVE LONG HAD SERIOUS PRO BONO PROGRAMS WORKING FOR CLIENTS AS DIVERSE AS DEATHROW INMATES MIGRANT WORKERS HOMELESS PEOPLE ENVIRONMENTAL GROUPS AND FAMILYPLANNING CLINICS WASHINGTON'S ARNOLD & PORTER LONG A LEADER IN THE FIELD ENCOURAGES LAWYERS TO SPEND UP TO 15 OF THEIR TIME IN PRO BONO COVINGTON & BURLING ANOTHER WASHINGTON FIRM WITH AN EXTENSIVE PROGRAM IS IN ITS 25TH YEAR OF LENDING LAWYERS FULL TIME TO THE LOCAL LEGALSERVICES PROGRAM FOR THE POOR IT NOW SUPPLIES THREE LAWYERS TWO SECRETARIES AND TWO PARALEGALS FOR SIX MONTHS AT A TIME THE EFFORTS OFTEN ARE ON THE CUTTING EDGE OF CHANGE EARLIER THIS WEEK A FEDERAL JUDGE BARRED THE PENTAGON FROM DISCHARGING SIX GAY SERVICE MEMBERS PENDING RESOLUTION OF A SUIT THAT MAY POSE A MAJOR CHALLENGE TO THE GOVERNMENT'S POLICY ON HOMOSEXUALS IN THE MILITARY THE SUIT WAS BROUGHT BY THE LAMBDA LEGAL DEFENSE AND EDUCATION FUND AND THE AMERICAN CIVIL LIBERTIES UNION WITH THE HELP OF ATTORNEYS FROM NEW YORK'S SULLIVAN & CROMWELL IN RECENT YEARS THE FOCUS ON PRO BONO ACTIVITIES HAS BEEN INTENSIFYING LEGAL PUBLICATIONS SUCH AS THE AMERICAN LAWYER HAVE STARTED RANKING FIRMS BY THEIR PRO BONO EFFORTS THE ABA LAST NOVEMBER LAUNCHED A PRO BONO CHALLENGE ASKING FIRMS TO DEVOTE UP TO 5 OF BILLABLE HOURS TO PRO BONO WORK IT SAYS 170 OF THE COUNTRY'S TOP 500 FIRMS HAVE SIGNED UP SO FAR AND PLEDGED A TOTAL OF FOUR MILLION HOURS OF PRO BONO TIME ANNUALLY BUT SOME LAWYERS COMPLAIN THAT THE EMPHASIS ON PRO BONO WORK OFTEN SMACKS OF POLITICAL CORRECTNESS IT'S MAKING SOMEBODY ELSE'S CHARITY MY CHARITY I RESENT THAT MOST OF ALL SAYS HENRY TRAWICK AN ATTORNEY IN SARASOTA FLA HE COFOUNDED A GROUP OF SOME 500 LAWYERS THAT IS CHALLENGING THE REGULATORY POWERS OF THE 50600MEMBER FLORIDA BAR INCLUDING ITS EFFORTS TO MONITOR THE LEVEL OF LAWYERS' PRO BONO WORK FOR THE POOR WHICH HE TERMS INVOLUNTARY SERVITUDE I DO WORK FOR CHURCHES FOR FREE AND HAVE FOR 45 YEARS MR TRAWICK SAYS IF I WERE TO REPRESENT THE HUMANE SOCIETY I WOULDN'T CHARGE THEM BUT HERE THEY'RE TELLING ME I MUST REPRESENT WHAT IS DEFINED BY THEM AS THE POOR I DON'T WANT SOMEONE ELSE TELLING ME WHAT TO DO FLORIDA'S HOLLAND & KNIGHT WHOSE ROOTS TRACE BACK TO THE EARLY PART OF THE CENTURY HAS LONG BEEN KNOWN FOR ITS PRO BONO EFFORTS MUCH OF THAT STEMS FROM CHESTERFIELD SMITH THE FIRM'S 76YEAROLD CHAIRMAN EMERITUS AND A FORMER PRESIDENT OF THE ABA I'VE HAD SOME COMPLAINTS ABOUT THE FIRM'S PRO BONO ACTIVITIES MR SMITH SAYS BUT NONE THAT I'VE WORRIED ABOUT HE ADDS MOST COME FROM PEOPLE WHO HAVE A BIAS AGAINST CERTAIN GROUPS YOU REPRESENT GROUPS THEY FEEL ARE CREEPS AND YOU TELL THEM WELL I DON'T THINK THEY ARE CREEPS' AND YOU GO AHEAD AND DO IT THE BULK OF HOLLAND & KNIGHT'S PRO BONO WORK INVOLVES INDIVIDUAL LAWYERS PURSUING INDIVIDUAL CASES BUT IN 1990 THE FIRM ESTABLISHED ITS COMMUNITY SERVICES TEAM AMONG OTHER REASONS TO CREATE A WAY TO MARSHAL THE FIRM'S FULL RESOURCES ON BIG PROJECTS THE FIRM SAYS COMMUNITY SERVICES NOW ACCOUNTS FOR ABOUT 6500 OF THE ROUGHLY 14000 PRO BONO HOURS ITS LAWYERS AVERAGE EACH YEAR IT SAYS THEY ALSO SPEND ANOTHER 6000 HOURS ANNUALLY ON CIVIC OR CHARITABLE WORK HOLLAND & KNIGHT NAMED MR HANLON A FORMER LEGALSERVICES ATTORNEY WHO RECENTLY HAD JOINED THE FIRM TO HEAD THE NEW OPERATION WITH AN ASSOCIATE ROTATING ON AN 18MONTH STINT THE FIRST CASE MR HANLON PROPOSED ACCEPTING WAS AGAINST TAMPA GENERAL HOSPITAL AND THE UNIVERSITY OF SOUTH FLORIDA ACCUSING THEM OF DOING MEDICAL EXPERIMENTS ON LOWINCOME PREGNANT WOMEN WITHOUT PROPER CONSENT ALL THE GUYS IN OUR MEDICAL PRACTICE WENT OH MY GOD THIS COULD RUIN US' MR HANLON RECALLS CHEERFULLY IT WAS A GREAT WAY FOR ME TO INTRODUCE MYSELF TO THE FIRM HE VISITED ALL THE PARTNERS TO EXPLAIN THE CASE AND OFFERED EACH A COPY OF THE PROPOSED COMPLAINT TO SHOW TO THEIR CLIENTS TO A ONE THE CLIENTS SAID IF WE DO THAT IT WILL BE FINE MR HANLON SAYS THAT CASE IS STILL IN THE COURTS BEFORE ACCEPTING A CASE MR HANLON ALWAYS CIRCULATES A MEMO ABOUT IT TO THE FIRM'S 218 PARTNERS GIVING THEM 10 DAYS TO WEIGH IN THERE'S NEVER BEEN A CASE WHERE SOME DON'T SAY THEY DON'T THINK WE SHOULD BE DOING IT HE SAYS SOMETIMES THE ARGUMENTS PERSUADE HIM TO DROP A CASE THE FINAL DECISION RESTS WITH THE FIRM'S MANAGING PARTNER MR HANLON SAYS HIS OFFICE HAS AN ANNUAL BUDGET OF ABOUT 1 MILLION HALF OF THAT COVERS THE BILLING TIME OF MR HANLON AND HIS ASSOCIATE THE OTHER HALF REFLECTS A BANK OF ABOUT 3000 HOURS FROM THE REST OF THE FIRM THAT HE CAN DRAW ON THE OFFICE GETS HUNDREDS OF CALLS A MONTH FROM PEOPLE NEEDING PRO BONO WORK SAYS MANUEL DOBRINSKY WHO RECENTLY COMPLETED AN 18MONTH STINT AS THE OFFICE'S ASSOCIATE BUT IT TURNS MOST DOWN AND MR HANLON SAYS HE CURRENTLY ISN'T TAKING NEW CASES SINCE ITS FOUNDING COMMUNITY SERVICES HAS TAKEN SEVERAL DOZEN CASES RANGING FROM FIGHTING HOUSING DISCRIMINATION IN MIAMI TO HELPING A FAMILY GET A HOSPITAL TO END LIFE SUPPORT FOR AN ACCIDENT VICTIM THE FIRM DOESN'T SHY FROM CONTROVERSY IN 1992 MR HANLON SENT A MEMO TO PARTNERS PROPOSING TO REPRESENT A LESBIAN COUPLE SEEKING TO OVERTURN A STATE DECISION THAT THEY COULDN'T BE FOSTER PARENTS I HAD MORE AFFIRMATIVE RESPONSE TO THAT CASE THAN ANY OTHER I PROPOSED HE SAYS AND ONLY THREE SAID THEY OPPOSED IT THE CASE IS STILL BEING LITIGATED THE ROSEWOOD CASE WASN'T ESPECIALLY CONTROVERSIAL MR HANLON FIRST HEARD OF IT FROM A PRODUCER WHO HAD BOUGHT THE RIGHTS TO TWO SURVIVORS' STORIES EVEN AS HE WAS DRAWN INTO IT HE AND OTHER LAWYERS QUESTIONED THE WISDOM OF TAKING ON SUCH AN OLD CASE A DECISION TO TAKE A CASE IS A DECISION NOT TO TAKE OTHER CASES HE SAYS HE SPENT ABOUT EIGHT MONTHS HE SAYS RESEARCHING ROSEWOOD BEFORE RECOMMENDING THAT THE FIRM TAKE THE CASE AN INTERVAL HE SAYS ISN'T UNUSUAL FINALLY HE BECAME CONVINCED THE CASE WAS OF UNIQUE IMPORTANCE IT HAS ENORMOUS MEANING TO AFRICANAMERICANS MR HANLON SAYS BECAUSE ROSEWOOD WAS AN INDEPENDENT WORKINGCLASS PROPERTYOWNING SELFSUFFICIENT AFRICANAMERICAN COMMUNITY WHICH COULD HAVE BEEN PASSED DOWN FROM ONE GENERATION TO THE NEXT AND IT WAS SNUFFED OUT AND FOR MANY MANY AFRICANAMERICANS THAT SAYS SO MUCH ABOUT THEIR STRUGGLE IN AMERICA PRO BONO WORK SOMETIMES YIELDS ATTORNEYS FEES BUT MR HANLON SAYS THE FIRM WOULD NEVER MAKE A DIME FROM ROSEWOOD I THINK THE PUBLIC WOULD BE OUTRAGED IF IT THOUGHT THE LAWYERS WERE GETTING SOMETHING HE SAYS WHEN SOME ROSEWOOD PEOPLE SOUGHT ADVICE ON FILM CONTRACTS MR HANLON REFERRED THEM TO ANOTHER FIRM EVEN THOUGH HOLLAND & KNIGHT HAS ITS OWN ENTERTAINMENT LAWYERS MR HANLON QUICKLY DETERMINED THAT THE CHANCES OF A JUDICIAL SOLUTION TO THE CASE WERE SLIM GIVEN THE STATUTE OF LIMITATIONS BUT A LEGISLATIVE SOLUTION SEEMED POSSIBLE A CLAIMS BILL WAS DRAWN UP MODELED ON THE REPARATIONS ACT THAT CONGRESS PASSED IN 1988 TO COMPENSATE JAPANESEAMERICANS INTERNED DURING WORLD WAR II AN ECONOMIST WAS BROUGHT IN AT A PRICE OF 8000 TO THE LAW FIRM TO CALCULATE MONETARY DAMAGES MEANWHILE THE LAWYERS INTERVIEWED SURVIVORS AND OTHERS LAST SUMMER MESSRS HANLON AND DOBRINSKY ATTENDED A ROSEWOOD FAMILY REUNION IN WASHINGTON DC THE ONLY WHITES AMONG THE SCORES OF ATTENDEES AND GOT FURTHER CORROBORATION OF THE STORY ALTHOUGH THE CLAIMS BILL HAD THE SUPPORT OF THE LEGISLATIVE LEADERSHIP AND THE STATE'S MAJOR NEWSPAPERS IT WAS VERY CONTROVERSIAL EVEN SOME SUPPORTERS WORRIED ABOUT THE PRECEDENT IT WOULD SET THUS HOLLAND & KNIGHT SHEPHERDED IT ALL THE WAY ON ONE CRITICAL DAY MS BARNETT'S ROSEWOOD DUTIES KEPT HER FROM SPENDING TIME WITH A MAJOR CORPORATE CLIENT THIS ONE IS UNIQUE MS BARNETT SAYS ROSEWOOD HAS A LIFE OF ITS OWN FOR MS BARNETT IT IS ESPECIALLY PERSONAL AFTER HOLLAND & KNIGHT ACCEPTED THE CASE SHE THOUGHT SHE RECOGNIZED THE NAMES OF SOME OF THE ROSEWOOD KIN FROM HER CHILDHOOD DAYS IN LACOOCHEE FLA WHERE HER FATHER WAS THE TOWN PHYSICIAN SURE ENOUGH SEVERAL FAMILIES HAD MOVED TO LACOOCHEE AFTER FLEEING ROSEWOOD AND THEY KNEW EXACTLY WHO SHE WAS HER FATHER DELIVERED ME SAYS MR DOCTOR 9404080068 940408 SUDBURY INC EXPECTS TO REPORT A NET LOSS FOR FISCAL 3RD QUARTER CLEVELAND SUDBURY INC IS RACKING UP SHARPLY HIGHER OPERATING EARNINGS BUT THE COMPANY'S SUCCESS TRIGGERED AN UNUSUAL CHARGE THAT WILL RESULT IN A NET LOSS FOR THE THIRD QUARTER ENDED FEB 28 SAID JACQUES R SARDAS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER BOLSTERED BY A STRONG AUTO MARKET SUDBURY EXPECTS TO REPORT THAT FISCAL THIRDQUARTER OPERATING PROFIT BEFORE INTEREST COSTS AND UNUSUAL CHARGES MORE THAN DOUBLED MR SARDAS SAID IN AN INTERVIEW SALES JUMPED MORE THAN 15 HE ADDED THE COMPANY EXPECTS TO REPORT A NET LOSS FOR THE QUARTER OF ABOUT 26 MILLION OR 21 CENTS A SHARE MR SARDAS SAID IN THE YEAREARLIER QUARTER SUDBURY HAD A NET LOSS OF 205000 OR TWO CENTS A SHARE INCLUDING SPECIAL CHARGES OF 146000 IN AN INTERVIEW MR SARDAS SAID HE EXPECTS STRONG OPERATING RESULTS AGAIN IN THE FOURTH QUARTER ENDING MAY 31 BECAUSE OF IMPROVED EFFICIENCY AT SUDBURY'S SIX OPERATING UNITS COMBINED WITH STRONG AUTOMOTIVE DEMAND PARTS FOR CARS AND LIGHT TRUCKS ACCOUNT FOR ABOUT HALF THE COMPANY'S SALES HE DECLINED TO MAKE A SPECIFIC EARNINGS FORECAST FOR THE FOURTH QUARTER OR FISCAL YEAR DURING THE THIRD QUARTER SUDBURY INCURRED UNUSUAL CHARGES TOTALING NEARLY 6 MILLION TO COVER COSTS OF INCENTIVE COMPENSATION FOR MR SARDAS ARISING FROM THE COMPANY'S PROGRESS SINCE EMERGING FROM BANKRUPTCYCOURT REORGANIZATION ON SEPT 1 1992 OPERATING PROFIT BEFORE INTEREST COSTS AND UNUSUAL CHARGES JUMPED TO ABOUT 33 MILLION COMPARED WITH 15 MILLION THE SAME BUSINESSES EARNED A YEAR EARLIER MR SARDAS ESTIMATED INTEREST EXPENSE DECLINED TO 900000 FROM 13 MILLION HE SAID THAT INDICATES PROFIT BEFORE UNUSUAL CHARGES OF ABOUT 24 MILLION IN THE 1994 THIRD PERIOD UP FROM ABOUT 200000 A YEAR EARLIER SUDBURY'S EARNINGS ARE SHIELDED FROM TAXES BY LOSS CARRYFORWARDS SUDBURY'S SALES IN THE QUARTER EXCEEDED 60 MILLION HE SAID UP FROM 522 MILLION A YEAR EARLIER SALES AND OPERATINGPROFIT FIGURES FOR THE 1993 PERIOD EXCLUDE RESULTS OF UNITS SOLD AS PART OF SUDBURY'S REORGANIZATION PLAN 9404080067 940408 MONEYFUND ASSETS SOAR BY 1079 BILLION DURING LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS HAD THEIR BIGGEST WEEK IN MORE THAN TWO YEARS RISING 1079 BILLION TO 60052 BILLION FROM A REVISED 58973 BILLION THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 663 RETAIL MONEY MARKET MUTUAL FUNDS SOARED 1048 BILLION TO 42336 BILLION THE TRADE GROUP REPORTED AMONG RETAIL FUNDS ASSETS OF 412 TAXABLE MONEY MARKET FUNDS CLIMBED 848 BILLION TO 32773 BILLION WHILE ASSETS OF 251 RETAIL TAXEXEMPT FUNDS GREW BY 201 BILLION TO 9563 BILLION THE LARGE NET INFLOW INTO RETAIL MUTUAL FUNDS IS NOT UNEXPECTED GIVEN THE UNCERTAINTY GENERATED BY RECENT VOLATILITY IN THE MONEY AND CAPITAL MARKETS SAID RICHARD MARCIS ACTING DIRECTOR OF RESEARCH AT THE INSTITUTE ASSETS OF INSTITUTIONAL MONEY MARKET FUNDS INCREASED BY 3097 MILLION TO 17716 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF TAXABLE MONEY MARKET FUNDS SLID 3742 MILLION TO 15325 BILLION ASSETS OF TAXEXEMPT FUNDS ROSE BY 6839 MILLION TO 2391 BILLION 9404080066 940408 HILO AUTOMOTIVE SALES RISE HOUSTON HILO AUTOMOTIVE INC SAID MARCH SALES AT STORES OPEN AT LEAST A YEAR ROSE 78 TOTAL SALES INCREASED 19 TO 197 MILLION FROM 165 MILLION A YEAR EARLIER FOR THE THREE MONTHS ENDED MARCH 31 SALES INCREASED 16 TO 524 MILLION FROM 452 MILLION SAMESTORE SALES ROSE 47 9404080065 940408 BUSINESS BRIEF ALLIEDSIGNAL INC GE SELECTS FIRM TO PROVIDE CONTROLS FOR PLANE ENGINE ALLIEDSIGNAL INC SAID IT WAS SELECTED BY GENERAL ELECTRIC CO TO PROVIDE HYDROMECHANICAL CONTROLS FOR THE NEW CFM567 TURBOFAN AIRCRAFT ENGINE THE CONTRACT IS ESTIMATED TO BE VALUED AT MORE THAN 280 MILLION DURING THE FIRST 10 YEARS OF PRODUCTION ALLIEDSIGNAL SAID THE GE ENGINE WILL POWER A NEW GENERATION OF BOEING CO 737 AIRCRAFT DELIVERIES ARE SCHEDULED TO BEGIN IN 1996 THE ENGINES WILL BE PRODUCED BY CFM INTERNATIONAL A JOINT VENTURE OF GE AND SNECMA OF FRANCE ALLIEDSIGNAL BASED IN MORRIS TOWNSHIP NJ PRODUCES AEROSPACE AND AUTOMOTIVE PRODUCTS CHEMICALS FIBERS PLASTICS AND ADVANCED MATERIALS 9404080064 940408 USAIR'S MARCH TRAFFIC ROSE 14 ARLINGTON VA USAIR A UNIT OF USAIR GROUP INC SAID ITS MARCH TRAFFIC ROSE 14 TO 333 BILLION REVENUE PASSENGER MILES FROM 292 BILLION REVENUE PASSENGER MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 654 FROM 612 FOR THE FIRST THREE MONTHS OF 1994 THE CARRIER SAID IT FLEW 839 BILLION REVENUE PASSENGER MILES UP 58 FROM THE 793 BILLION REVENUE PASSENGER MILES FLOWN A YEAR EARLIER LOAD FACTOR WAS 59 COMPARED WITH 556 9404080063 940408 BUSINESS BRIEF CARDINAL REALTY SERVICES INC HOUSING MANAGING COMPANY COMPLETES A RESTRUCTURING CARDINAL REALTY SERVICES INC COMPLETED A REFINANCING AND RESTRUCTURING WHICH IT SAID WILL SIGNIFICANTLY AFFECT ITS FIRSTQUARTER EARNINGS CARDINAL A COLUMBUS OHIOBASED COMPANY THAT MANAGES AND OWNS MULTIFAMILY REAL ESTATE ALSO SAID THE TRANSACTIONS ARE EXPECTED TO GENERATE SIGNIFICANT REVENUE AND CASH FLOW FOR THE COMPANY IN FUTURE PERIODS BUT THE COMPANY DIDN'T PROVIDE SPECIFICS IN THE FIRST TRANSACTION CARDINAL CLOSED PERMANENT FINANCING ON 94 APARTMENT PROPERTIES AS A RESULT CARDINAL CUT THE PROPERTIES' DEBT TO 109 MILLION FROM 1223 MILLION IN THE SECOND TRANSACTION CARDINAL RESTRUCTURED LOANS ON 24 APARTMENT PROPERTIES THE LOANS WERE DISCOUNTED TO 313 MILLION FROM 376 MILLION 9404080062 940408 THE BUSINESS OF LAW PAY ISSUE RAISED IN SEN MITCHELL'S CHANCES FOR COURT BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SQUAD OF ADMINISTRATION LAWYERS FOCUSING ON SEN GEORGE MITCHELL AS THE LEADING CANDIDATE TO SUCCEED RETIRING JUSTICE HARRY BLACKMUN SCRAMBLED TO PUT TO REST QUESTIONS ABOUT AN ARCANE PAYRAISE ISSUE THE LAWYERS DON'T SEE THE ISSUE AS A SERIOUS OBSTACLE TO A MITCHELL NOMINATION BUT THEIR EFFORTS REFLECT PRESIDENT CLINTON'S STRONG INCLINATION TO NAME THE SENATE MAJORITY LEADER TO THE COURT THE ISSUE IS THE US CONSTITUTION'S EMOLUMENTS CLAUSE WHICH FORBIDS APPOINTMENT OF A MEMBER OF CONGRESS TO A FEDERAL POST WHOSE COMPENSATION HAS BEEN INCREASED DURING THE MEMBER'S CURRENT TERM THE IDEA IS TO PREVENT LAWMAKERS FROM RAISING THE PAY OF OTHER GOVERNMENT JOBS THEY HOPE TO GET CONSERVATIVE ACTIVISTS ARE SAYING THAT BECAUSE SUPREME COURT SALARIES HAVE BEEN RAISED DURING SEN MITCHELL'S CURRENT SIXYEAR TERM HE CAN'T BE PUT ON THE COURT THE CONSERVATIVE FREE CONGRESS FOUNDATION PROMISES A FIGHT DECLARING THE CONSTITUTION CLEARLY PROHIBITS SEN MITCHELL FROM BEING APPOINTED TO THE SUPREME COURT AT THIS TIME ONE OBVIOUS SOLUTION WOULD BE FOR SEN MITCHELL IF NOMINATED AND CONFIRMED TO DELAY JOINING THE HIGH COURT UNTIL JANUARY AFTER HIS SENATE TERM EXPIRES THAT COULD BE AWKWARD POLITICALLY HOWEVER AND WOULD CAUSE LOGISTICAL PROBLEMS AT THE COURT WHICH BEGINS ITS TERM IN EARLY OCTOBER FOR LEGISLATORS MOVING TO CABINET POSTS INCLUDING TREASURY SECRETARY LLOYD BENTSEN WHO CAME FROM THE SENATE CONGRESS HAS APPROVED SPECIAL LEGISLATION ROLLING BACK THE SALARY FOR THE NEW JOBS TO WHERE IT WAS AT THE BEGINNING OF THE LAWMAKERS' MOSTRECENT TERM SOME CONSTITUTIONAL SCHOLARS SUCH AS HARVARD'S LAURENCE TRIBE BELIEVE THAT THE LEGISLATIVE FIX WOULD WORK FOR A SUPREME COURT NOMINEE AS LONG AS CONGRESS PASSES THE PAY ROLLBACK AFTER JUSTICE BLACKMUN RESIGNS AND BEFORE SEN MITCHELL IS SWORN IN THE TIMING IS CRUCIAL BECAUSE A SEPARATE CONSTITUTIONAL PROVISION PROHIBITS CUTTING A FEDERAL JUDGE'S PAY DURING HIS TIME IN OFFICE THE PAYRAISE ISSUE HAS COME UP BEFORE IN CONNECTION WITH THE SUPREME COURT MOST RECENTLY WHEN SEN ORRIN HATCH R UTAH THE RANKING REPUBLICAN ON THE SENATE JUDICIARY COMMITTEE WAS CONSIDERED FOR THE COURT IN 1987 AT THAT TIME REAGAN ADMINISTRATION LAWYERS AT THE JUSTICE DEPARTMENT CONCLUDED THAT THERE WASN'T A CLEAN' WAY AROUND THE PAY PROBLEM IN FACT THERE WAS A MORE PRACTICAL OBSTACLE IN 1987 HOUSE DEMOCRATS INDICATED THEY WOULD BLOCK SALARYROLLBACK LEGISLATION FOR SEN HATCH BARRING UNFORESEEN DEVELOPMENTS THE CLINTON ADMINISTRATION DOESN'T NEED TO WORRY ABOUT ROADBLOCKS IN THE DEMOCRATCONTROLLED CONGRESS BUT THE REAGANERA LEGAL OPINION STILL NEEDS TO BE REFUTED SEN HATCH A KEY FIGURE IN CONFIRMATION POLITICS DISMISSES THE PAYRAISE ISSUE THERE ARE A LOT OF WAYS TO GET AROUND THE EMOLUMENTS CLAUSE HE SAYS CONSERVATIVES COULD STILL CHALLENGE A MITCHELL APPOINTMENT IN COURT BUT SUCH A SUIT WOULD BE A LONG SHOT A SIMILAR CHALLENGE AIMED AT SENATORTURNEDJUSTICE HUGO BLACK IN THE 1930S WAS DISMISSED ON PROCEDURAL GROUNDS AND THE SUPREME COURT DECLINED TO CONSIDER THE CASE 9404080061 940408 NOMURA SECURITIES LED PROGRAM TRADERS IN TWO MARKET DROPS NEW YORK LAST WEEK'S MARKET PLUNGES OCCURRED AMID ACTIVE COMPUTERAIDED PROGRAM TRADING LED BY NOMURA SECURITIES CO'S US UNIT ACCORDING TO NEWLY RELEASED STATISTICS IN A SPECIAL SUPPLEMENT TO THE NEW YORK STOCK EXCHANGE'S WEEKLY REPORT ON PROGRAM TRADING THE JAPANESE BROKERAGE CONCERN WAS LISTED AS THE MOST ACTIVE TRADER DURING THE SHARPEST PARTS OF THE MARKET'S PLUNGES ON MARCH 30 AND MARCH 31 NOMURA TRADED 68 MILLION SHARES IN PROGRAMTRADING STRATEGIES DURING THOSE PLUNGES VIRTUALLY ALL OF NOMURA'S TRADING CONSISTED OF INDEXARBITRAGE TRADES FOR ITS OWN ACCOUNT MOSTLY ON THE SELLING SIDE THE STATISTICS MAY ADD FIRE TO THE COMPLAINTS OF PROGRAMTRADING CRITICS THAT SUCH RAPID MULTISTOCK TRADING EXACERBATES MARKET DECLINES PROGRAM TRADING WHICH IS BACK AT RECORD LEVELS AFTER BEING CRITICIZED AFTER THE 1987 STOCK MARKET CRASH IS DEFINED AS THE PURCHASE OR SALE OF AT LEAST 15 STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE THE MOST CONTROVERSIAL FORM IS INDEX ARBITRAGE WHICH INVOLVES THE TRADING OF STOCKS WITH OFFSETTING TRADES IN FUTURES AND OPTIONS MARKETS RESPONDING TO POSTCRASH CONCERNS THE BIG BOARD ISSUES A SUPPLEMENT ON PROGRAM TRADING FOR PERIODS IN WHICH THE DOW JONES INDUSTRIAL AVERAGE DECLINES 50 POINTS WITHIN A ONEHOUR PERIOD THAT HAPPENED TWICE ON MARCH 30 WHEN THE DOW EVENTUALLY CLOSED 7227 POINTS LOWER AND ONCE ON MARCH 31 AFTER NOMURA THE NEXT MOST ACTIVE TRADERS DURING THE PERIODS EXAMINED WERE SUSQUEHANNA INVESTMENT GROUP 56 MILLION SHARES UNION BANK OF SWITZERLAND'S UBS SECURITIES 42 MILLION SHARES COOPER NEFF & ASSOCIATES 29 MILLION SHARES AND MORGAN STANLEY GROUP INC 22 MILLION SHARES ALL EXCEPT MORGAN STANLEY TRADED MOSTLY ON THE SELL SIDE AND FOR THEIR OWN ACCOUNTS OF THE THREE PERIODS EXAMINED THE MOST ACTIVE PROGRAM TRADING OCCURRED FROM 230 PM TO 330 PM ON MARCH 30 WHEN 175 OF THE BIG BOARD'S VOLUME OF 548 MILLION SHARES WAS PROGRAM TRADING MOST OF THE TRADING WAS FOR THE BROKERAGE FIRMS' OWN ACCOUNTS AND THERE WAS TWICE AS MUCH PROGRAM SELLING AS BUYING 9404080060 940408 TECHNOLOGY & HEALTH HUMAN GENOME PLOTS OVER 45000 GENES IN SMITHKLINE PACT A WALL STREET JOURNAL NEWS ROUNDUP HUMAN GENOME SCIENCES INC SAID IT HAD SEQUENCED MORE THAN 45000 HUMAN GENES A MILESTONE THAT PROMPTED THE PAYMENT OF AN ADDITIONAL 125 MILLION FROM SMITHKLINE BEECHAM PLC THE ROCKVILLE MD BIOTECHNOLOGY COMPANY IS DEEP INTO AN ATTEMPT TO PLUCK ALL HUMAN GENES OUT OF THE DNA IN HUMAN CELLS IT'S ESTIMATED THERE ARE BETWEEN 50000 AND 100000 HUMAN GENES HUMAN GENOME AND A NONPROFIT INSTITUTE IT SUPPORTS THE INSTITUTE FOR GENOMIC RESEARCH HAVE A TECHNIQUE FOR RAPIDLY IDENTIFYING WHICH SNIPPETS OF HUMAN DNA ARE GENES AND WHICH ARE MEANINGLESS STRETCHES OF UNKNOWN PURPOSE THE COMPANY THEN TAKES THE GENE SNIPPETS AND DETERMINES THE ORDER OR SEQUENCE OF THE MOLECULES THAT COMPRISE EACH GENE A YEAR AGO SMITHKLINE BEECHAM THE BIG ANGLOAMERICAN DRUG MAKER COMMITTED 125 MILLION TOWARD HUMAN GENOME'S EFFORT PAYING AN INITIAL 59 MILLION IN 1993 THE REMAINING 66 MILLION WAS TO BE PARCELED OUT AS VARIOUS MILESTONES WERE PASSED A YEAR AHEAD OF THE DEADLINE IN THE SMITHKLINE ARRANGEMENT HUMAN GENOME MANAGED TO REACH THE MILESTONE OF SEQUENCING 45000 HUMAN GENES THE NEXT MILESTONE WILL BE THE SEQUENCING OF EITHER 90000 GENES OR A NUMBER THAT HUMAN GENOME AND SMITHKLINE AGREE CONSTITUTES 90 OF ALL HUMAN GENES WHICHEVER IS SMALLER EXPLAINED HUMAN GENOME CHAIRMAN AND CHIEF EXECUTIVE WILLIAM HASELTINE THIS MILESTONE WOULD TRIGGER THE PURCHASE BY SMITHKLINE OF 25 MILLION OF HUMAN GENOME'S SHARES AT ABOUT 70 A SHARE 9404080059 940408 PRUDENTIAL INSURANCE TOLD BY JURY TO PAY 254 MILLION AWARD A WALL STREET JOURNAL NEWS ROUNDUP AN ALABAMA JURY AWARDED TWO POLICY HOLDERS OF PRUDENTIAL INSURANCE CO OF AMERICA 254 MILLION IN A VERDICT CRITICIZING THE INSURER FOR ITS SUPERVISION OF AN ALLEGED UNSCRUPULOUS AGENT THE AWARD INVOLVES A LONGTIME PRUDENTIAL AGENT WHO ALLEGEDLY MISREPRESENTED THE BENEFITS OF FIVE DIFFERENT POLICIES SOLD TO AN OPELIKA ALA COUPLE BETWEEN 1983 AND 1993 ACCORDING TO JERE BEASLEY THE COUPLE'S ATTORNEY IN MONTGOMERY ALA ACCORDING TO MR BEASLEY PRUDENTIAL HAD SETTLED OUT OF COURT ABOUT 35 SEPARATE CLAIMS INVOLVING THE SAME AGENT AND COMPLAINTS ABOUT THE AGENT WERE CONTAINED IN HIS PERSONNEL FILE PRUDENTIAL TERMED THE AWARD GROSSLY EXCESSIVE AND SAID IT WOULD APPEAL IN A STATEMENT THE COMPANY SAID IT WAS EAGER TO ADDRESS LEGITIMATE COMPLAINTS AND NOTED THAT IT WAS NEVER GIVEN AN OPPORTUNITY TO ADDRESS THE SPECIFIC COMPLAINT PRIOR TO LITIGATION MEANWHILE THE INSURER ALSO FACES A LAWSUIT IN A PENNSYLVANIA STATE COURT ALLEGING THAT ITS AGENTS HAVE CHURNED ACCOUNTS UNDER THIS PRACTICE AGENTS SEEK OUT COMPANY POLICYHOLDERS WHO HAVE PAID PREMIUMS FOR YEARS AND HAVE BUILT UP EQUITY THE AGENTS PERSUADE THEM TO USE THE EQUITY OR TO BORROW AGAINST THE VALUE OF THE POLICIES AND TO ROLL THE PROCEEDS INTO A NEW UNNECESSARY POLICY THE NEW POLICY'S BENEFITS INCLUDE A HEFTY COMMISSION TO THE AGENT IN THE ALABAMA CASE HEARD IN THE CIRCUIT COURT FOR BARBOUR COUNTY EUFAULA DIVISION THE JURY RETURNED ITS VERDICT WEDNESDAY UNDER A FRAUD COUNT IT FOUND AGAINST BOTH THE AGENT CHARLIE WHATLEY AND THE COMPANY AWARDING 230000 COMPENSATORY DAMAGES AND 75 MILLION IN PUNITIVE DAMAGES THE JURY ALSO CONCLUDED THAT PRUDENTIAL HAD IMPROPERLY SUPERVISED THE AGENT AND AWARDED 200000 IN COMPENSATORY DAMAGES AND 175 MILLION IN PUNITIVE DAMAGES 9404080058 940408 TRUCKING FIRMS FACE A PROBLEM WITH CONGRESS COMPANIES NOW FIGHTING STRIKE BY TEAMSTERS SEE THREAT IN AVIATION BILL BY DANIEL PEARL AND ROBERT FRANK STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE TRUCKING COMPANIES FIGHTING A TEAMSTERS STRIKE ARE FACING ANOTHER BATTLE CONGRESS MAY FREE UP LARGER RIVALS TO COMPETE WITH THEM THIS YEAR THE SENATE IS CLOSE TO PASSING AN AVIATION BILL THAT INCLUDES A MEASURE BARRING STATES FROM REGULATING RATES AND SERVICES OF SUCH PACKAGEDELIVERY COMPANIES AS UNITED PARCEL SERVICE OF AMERICA INC THE LITTLENOTICED MEASURE STANDS A GOOD CHANCE OF SURVIVAL IN CONGRESS DESPITE LONGSTANDING OPPOSITION FROM TEAMSTERS WHO HAVE FEARED IT WOULD THREATEN THE SAME COMPANIES THEY'RE NOW STRIKING LESSTHANTRUCKLOAD CARRIERS WHICH CONSOLIDATE SMALL SHIPMENTS IN A SINGLE TRAILER THE TEAMSTERS STRIKE SHOWED FEW SIGNS OF RESOLUTION YESTERDAY SEVERAL SMALL COMPANIES ARE EXPECTED TO ASK THE UNION TODAY TO ALLOW WORKERS TO RETURN TO THEIR JOBS IF THE COMPANIES AGREE TO SIGN ON TO WHATEVER AGREEMENT IS EVENTUALLY REACHED THE FOUR LARGE TRUCKING COMPANIES IN THE DISPUTE WHICH EMPLOY 70000 OF THE 75000 STRIKING TEAMSTERS AREN'T EXPECTED TO SEEK ANY SUCH ACCORD THOSE COMPANIES ARE YELLOW CORP CONSOLIDATED FREIGHTWAYS INC ROADWAY SERVICES AND ARKANSAS BEST CORP LESSTHANTRUCKLOAD CARRIERS HAVE ALREADY BEEN BATTERED BY UPS AND OTHER COMPETITORS IN RECENT YEARS PARTLY BECAUSE OF PRICECUTTING ALLOWED BY THE DEREGULATION OF INTERSTATE TRUCKING IN 1980 WITHIN STATE BORDERS HOWEVER THESE CARRIERS HAVE HAD MORE PROTECTION FROM LARGE COMPETITORS IF THE STATE REGULATIONS ARE LIFTED BIG COMPANIES COULD PICK AND CHOOSE THEIR MARKET AND CRUSH WHATEVER CARRIER SERVES IT TODAY SAYS JAMES HARKINS EXECUTIVE DIRECTOR OF THE REGULAR COMMON CARRIERS CONFERENCE WHICH HELPS SET RATES FOR MANY LESSTHANTRUCKLOAD CARRIERS IT'S LIKE A MULTITON HYDRAULIC PRESS COMING DOWN ON A SMALL TIN CAN OPPONENTS OF STATE REGULATION HOWEVER SAY IT COSTS TRUCKING CUSTOMERS AS MUCH AS 12 BILLION A YEAR ROBERT VOLTMANN OF THE NATIONAL INDUSTRIAL TRANSPORTATION LEAGUE A GROUP THAT REPRESENTS TRUCKING CUSTOMERS SAYS SOME STATES LOCK OUT COMPETITION ON CERTAIN ROUTES THE LOCAL TRUCKERS ARE BASICALLY GUARANTEED TO MAKE MONEY BY THE STATE MR VOLTMANN SAYS IRONICALLY THE EFFORT TO LIFT THE STATE REGULATIONS IS BEING PUSHED BY A COMPANY THE TRUCKERS DIDN'T USED TO CONSIDER A THREAT FEDERAL EXPRESS CORP THE AIREXPRESS GIANT BASED IN MEMPHIS TENN FEDERAL EXPRESS SAYS THE COMPANY COULD BE FORCED TO FLY PACKAGES OUT OF SOME STATES TO AVOID REGULATION EVEN IF THE PACKAGE IS ULTIMATELY HEADING TO A NEIGHBORING TOWN THE COMPANY IS AIMING TO MAKE MORE OF THESE DELIVERIES BY TRUCK ESPECIALLY AS THE MARKET IS MOVING TOWARD TWODAY DELIVERIES RATHER THAN OVERNIGHT ALTHOUGH MOST OF THE 40 STATES THAT REGULATE TRUCKING WITHIN THEIR BORDERS HAVEN'T ENFORCED REGULATIONS ON FEDERAL EXPRESS BECAUSE THEY'VE CONSIDERED IT AN AIRLINE THAT COULD CHANGE AS FEDERAL EXPRESS ACTS MORE LIKE A TRUCKING COMPANY FEDERAL EXPRESS SAYS IT HAS NO PLANS TO COMPETE DIRECTLY WITH THE LESSTHANTRUCKLOAD CARRIERS WHICH CARRY ENTIRE PALETTES OF GOODS AND TAKE THREE OR FOUR DAYS TO DELIVER THEM BUT ANALYSTS DISAGREE THEY HAVE EVERY INTENTION OF GOING IN THERE AND DOING BATTLE SAID PAUL SCHLESINGER ANALYST AT DONALDSON LUFKIN & JENRETTE AND THIS WILL HELP DESPITE FEDERAL EXPRESS CHAIRMAN FREDERICK SMITH'S PERSONAL LOBBYING OF SCORES OF CONGRESSMEN OVER THE YEARS UNION OPPOSITION KEPT THE COMPANY FROM GETTING ANYWHERE AND FEDERAL EXPRESS HAD TO BATTLE STATE REGULATIONS IN INDIVIDUAL COURTS IN 1991 THE COMPANY WON A VICTORY IN CALIFORNIA WHEN A FEDERAL COURT RULED FEDERAL EXPRESS WAS EXEMPT FROM THE STATE'S TRUCKING REGULATIONS AND IN DECEMBER FEDERAL EXPRESS CAJOLED TEXAS OFFICIALS INTO COPYING THE CALIFORNIA ACTION BY MAKING THAT A CONDITION OF MOVING A MAJOR REGIONAL HUB AND MORE THAN 600 JOBS TO FORT WORTH SINCE THEN THERE'S BEEN A FAST SNOWBALL EFFECT ATLANTABASED UPS CONCERNED THAT THE TEXAS AND CALIFORNIA DECISIONS LEFT IT AT A DISADVANTAGE JOINED FORCES WITH FEDERAL EXPRESS IN CONGRESS UPS'S LARGEST HUB IS IN LOUISVILLE KY AND THE COMPANY GOT THE SUPPORT OF DEMOCRATIC SEN WENDELL FORD OF KENTUCKY WHO HEADS THE SENATE AVIATION SUBCOMMITTEE FEDERAL EXPRESS ALSO REACHED OUT TO UNION PACIFIC CORP WHICH OWNS OVERNITE TRANSPORTATION CO A NONUNION TRUCKING COMPANY UNION PACIFIC A RAILROAD BASED IN BETHLEHEM PA ALSO OWNS SKYWAY FREIGHT SYSTEMS INC A SMALL CARGO COMPANY AT THE URGING OF THE COMPANIES SEN FORD AND SEN JAMES SASSER D TENN FILED AN AMENDMENT TO THE AVIATION BILL THAT INCLUDES TRUCKERS SUCH AS OVERNITE THAT ARE LINKED TO A CARGO AIRLINE NOW OTHERS INCLUDING SOME OF THE LARGER LESSTHANTRUCKLOAD CARRIERS ARE TRYING TO AVOID BEING LEFT BEHIND YELLOW CORP WHICH USES FORMER TRANSPORTATION SECRETARY JAMES BURNLEY AS ITS LOBBYIST IS TRYING TO GET THE AMENDMENT LANGUAGE CHANGED SO THAT A TRUCKING COMPANY THAT SOMETIMES PUTS PACKAGES ON OTHER COMPANIES' AIRPLANES CAN'T BE REGULATED BY STATES EITHER THIS IS NOT SOMETHING WE STARTED SAYS WARREN HOEMANN YELLOW CORP'S VICE PRESIDENT OF GOVERNMENT RELATIONS BUT HE SAYS ANY CARRIER THAT'S EXEMPTED FROM STATE REGULATIONS CAN ENTER NEW MARKETS AND THUS SPREAD ITS COSTS BETTER IN GENERAL UNIONIZED CARRIERS HAVE HAD A HARD TIME COMPETING WITH NONUNION TRUCKERS UNDER DEREGULATION THE AVERAGE UNIONIZED LESSTHANTRUCKLOAD DRIVER EARNS 4500050000 A YEAR COMPARED WITH 3500040000 FOR THEIR NONUNION COUNTERPARTS ACCORDING TO WHEAT FIRST SECURITIES INC MANY LESSTHANTRUCKLOAD COMPANIES HAVE SET UP OR PURCHASED NONUNION OPERATIONS TO COMPETE ON THE REGIONAL LEVEL STILL THEIR MOST FEARED COMPETITOR IS UPS WHICH IS THE LARGEST TEAMSTERS EMPLOYER BUT WHICH USES PARTTIMERS IN ITS SORTING HUBS AND CAN CUT COSTS BY SHIPPING LARGE VOLUMES BY RAIL UPS HAS LAUNCHED A HOST OF BULK DISCOUNTS AND RELAXED WEIGHT LIMITATIONS TO CAPTURE MORE OF THE GROWING COMMERCIAL MARKET ALTHOUGH THE TEAMSTERS ARGUE THAT UPS DOESN'T COMPETE WITH THE LESSTHANTRUCKLOAD CARRIERS AND THEREFORE THE CONTRACTS AREN'T COMPARABLE A UPS SPOKESMAN SAID THE COMPANY NOW COMPETES WITH THESE CARRIERS FOR A TREMENDOUS AMOUNT OF BUSINESS THE TEAMSTERS' NEXT MAJOR CONTRACT RENEGOTIATION IS WITH CAR HAULERS NEXT YEAR A RECENT UPS SQUABBLE IN COLORADO SHOWS ONE REASON THE COMPANY IS SO EAGER TO BE EXEMPTED FROM STATE REGULATIONS IN FEBRUARY UPS ANNOUNCED A NATIONWIDE RATE INCREASE FOR GROUND AND AIR DELIVERIES THE COMPANY HAD TO GET EACH STATE'S APPROVAL IN COLORADO NONE OF THE COMPANY'S 19000 CUSTOMERS OPPOSED THE MOVE EXCEPT ONE ALTHOUGH THE UNIDENTIFIED CUSTOMER SHIPPED LESS THAN SIX PACKAGES A DAY WITH UPS IT WAS STILL ABLE TO BLOCK THE RATE INCREASE ACCORDING TO THE COMPANY WHICH SAID THE DELAY HAS COST 230000 IN LOST REVENUE SO FAR DANIEL MACHALABA IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9404080056 940408 BUSINESS BRIEF HOUSTON INDUSTRIES INC UNIT AND CHEWTON GLEN PLAN A TIRETOENERGY VENTURE HOUSTON INDUSTRIES INC SAID A UNIT WILL JOIN CLOSELY HELD CHEWTON GLEN ENERGY INC OF ENGLEWOOD COLO IN A 105 MILLION ILLINOIS TIRETOENERGY PLANT VENTURE A SPOKESMAN FOR THE UNIT HOUSTON INDUSTRIES ENERGY INC SAID HE EXPECTS THE COMPLETED PLANT TO HAVE REVENUE OF ABOUT 20 MILLION A YEAR THE 199MEGAWATT PLANT IN FORD HEIGHTS 30 MILES SOUTH OF CHICAGO WILL BE FUELED BY 65000 TONS OF SCRAP TIRES A YEAR AND WILL SELL ELECTRICITY TO COMMONWEALTH EDISON THE UTILITY THAT SERVES THE CHICAGO AREA HOUSTON INDUSTRIES SAID HOUSTON INDUSTRIES A UTILITY HOLDING COMPANY SAID ITS UNIT IS A 20OWNER IN THE PLANT WITH CHEWTON GLEN OWNING THE REMAINING 80 9404080055 940408 THIRTYYEAR MORTGAGES SHOW BIG JUMP IN RATES A WALL STREET JOURNAL NEWS ROUNDUP INTEREST RATES ON CONVENTIONAL 30YEAR MORTGAGES JUMPED ALMOST HALF A POINT THIS WEEK BEFORE SLIDING SOMEWHAT TO 852 YESTERDAY ACCORDING TO HSH ASSOCIATES A MORTGAGEINFORMATION PUBLISHER IN BUTLER NJ IN LATE MARCH RATES CLIMBED ABOVE THE PSYCHOLOGICALLY IMPORTANT 8 THRESHOLD FOR THE FIRST TIME IN MORE THAN A YEAR TURMOIL IN THE BOND MARKET WHICH INFLUENCES MORTGAGE RATES PUSHED 30YEAR MORTGAGE RATES AS HIGH AS 861 EARLIER THIS WEEK THAT MARKED THE LARGEST WEEKLY JUMP IN RATES SINCE 1987 AND THE SECONDHIGHEST SINCE HSH BEGAN KEEPING RECORDS 15 YEARS AGO SAID KEITH GUMBINGER AN ANALYST AT THE FIRM THE MARKET HAS BEEN IGNORING REAL ECONOMIC NEWS WHICH HAS BEEN STEADILY IMPROVING SAID MR GUMBINGER THE MARKETS ARE NUTS JUST REELING FROM RUMOR TO RUMOR 9404080054 940408 TECHNOLOGY CELGENE TO TEST PATIENTS WITH CACHEXIA TREATMENT WARREN NJ CELGENE CORP SAID IT PLANS TO BEGIN EARLYSTAGE HUMAN TESTING OF THALIDOMIDE IN AIDS PATIENTS TO TREAT CACHEXIA OR THE WASTING THAT RESULTS FROM THE BODY'S INABILITY TO PROCESS NUTRIENTS THALIDOMIDE IS AN ORGANIC MOLECULE THAT CAUSED SEVERE BIRTH DEFECTS IN EUROPE WHEN IT WAS PRESCRIBED AS A SEDATIVE AND MORNINGSICKNESS TREATMENT IN THE EARLY 1960S IT IS EFFECTIVE IN TREATING SOME SYMPTOMS OF LEPROSY THE MAJORITY OF PEOPLE WITH ADVANCED AIDS SUFFER FROM CACHEXIA WHICH CAN ITSELF LEAD TO DEATH ACCORDING TO THE COMPANY THALIDOMIDE HAS BEEN SHOWN IN PATIENTS TO REDUCE THE PRODUCTION OF TUMOR NECROSIS FACTOR ALPHA A PROTEIN ELEVATED LEVELS OF WHICH HAVE BEEN STRONGLY IMPLICATED IN THE WEIGHT LOSS IN A SEPARATE STUDY PLANNED BY CELGENE AND THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES THALIDOMIDE WILL BE TESTED TO INHIBIT THE SYNTHESIS OF TUMOR NECROSIS FACTOR ALPHA WHICH IS BELIEVED TO BE INVOLVED IN HIV REPLICATION IN HUMANS THE COMPANY SAID THE BIOTECHNOLOGY COMPANY PLANS TO TEST DERIVATIVES OF THE DRUG AS A TREATMENT FOR RHEUMATOID ARTHRITIS INFLAMMATORY BOWEL DISEASE AND MULTIPLE SCLEROSIS 9404080053 940408 POLITICS & POLICY MCDOUGAL TO PEDDLE COPIES OF WHITEWATER DOCUMENTS WASHINGTON ERSTWHILE CLINTON BUSINESS PARTNER JAMES MCDOUGAL HAS A MONEYMAKER ON HIS HANDS PEDDLING COPIES OF WHITEWATER DEVELOPMENT CO DOCUMENTS TO THE NEWS MEDIA THE DOCUMENTS GO ON SALE TUESDAY PRICE TAG 4000 FOR THE ENTIRE 2000PAGE PACKAGE THEY INCLUDE BANK RECORDS ON WHITEWATER LOANS CORPORATE TAX RETURNS AND RECORDS ON LOT SALES AT THE 230ACRE VACATIONHOME DEVELOPMENT IN THE ARKANSAS OZARKS THE CLINTONS WHO SOLD THEIR 50 STAKE IN WHITEWATER TO MR MCDOUGAL IN 1992 TURNED THE RECORDS OVER TO MR MCDOUGAL THIS WEEK SO THAT HE COULD FILE TAX RETURNS SAM HEUER MR MCDOUGAL'S LITTLE ROCK LAWYER SAID HIS CLIENT NEEDS TO RAISE MONEY FOR HIS LEGAL DEFENSE MR HEUER HAS SAID THAT HE EXPECTS SPECIAL COUNSEL ROBERT FISKE'S INVESTIGATION OF WHITEWATER AND MADISON GUARANTY SAVINGS & LOAN TO RESULT IN MR MCDOUGAL'S INDICTMENT MR MCDOUGAL OWNED THE FAILED LITTLE ROCK THRIFT UNTIL FEDERAL REGULATORS TOOK OVER IN 1989 LAST MONTH MR MCDOUGAL WHO IS RUNNING IN THE DEMOCRATIC PRIMARY FOR A CONGRESSIONAL SEAT FROM ARKANSAS BEGAN SELLING DIRT FROM A WHITEWATER LOT FOR 1995 A CUBIC FOOT 9404080052 940408 LINKS TO ASKIN HAUNT WALL STREET FIRMS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL MONDAY MORNING A KIDDER PEABODY & CO SALESMAN IN CHICAGO CIRCULATED A MEMO TO CUSTOMERS AS CONCISE AS IT WAS ELECTRIFYING THE MEMO ADVERTISED THAT KIDDER WANTED TO DUMP A BOATLOAD OF ESOTERIC MORTGAGE SECURITIES INCLUDING A PORTION ONCE HELD BY HEDGEFUND MANAGER DAVID ASKIN WHOSE FUNDS COLLAPSED LAST WEEK JACK WELCH SAYS THESE MUST GO THE SALESMAN TOLD CLIENTS REFERRING TO THE CHIEF EXECUTIVE OFFICER OF GENERAL ELECTRIC CO KIDDER'S PARENT AS THE MEMO HAS MADE THE ROUNDS OF A JITTERY BOND MARKET KIDDER REPRESENTATIVES HAVE TRIED TO PASS IT OFF AS THE SALESMAN'S JOKE BUT THE DISINTEGRATION OF MR ASKIN'S PORTFOLIO AND THE SELLOFF IT ENGENDERED IS NO LAUGHING MATTER NOT FOR MR ASKIN'S WIPEDOUT INVESTORS NOT FOR OTHERS HIT BY FALLING MORTGAGE AND TREASURY BOND PRICES AND ESPECIALLY NOT FOR KIDDER WHICH FORGED A PARTICULARLY TIGHT RELATIONSHIP WITH MR ASKIN HE WAS ONE OF THEIR TOP FIVE ACCOUNTS FOR MORTGAGE DERIVATIVES SAYS THE HEAD OF A RIVAL MORTGAGEDERIVATIVE TRADING DESK MR ASKIN ALSO WAS CLOSE TO OTHER BIG DEALERS IN MORTGAGE DERIVATIVES INCLUDING BEAR STEARNS & CO A UNIT OF BEAR STEARNS COS AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP A UNIT OF EQUITABLE COS NOW THOSE TIES ARE COMING BACK TO HAUNT THE FIRMS AND THE REPERCUSSIONS ARE BEING FELT THROUGHOUT THE BOND MARKET MR ASKIN'S HIGHLY EXPLOSIVE BONDS FROM THEIR INVENTORIES THE DEALERS HAVE HEDGED THEMSELVES BY DITCHING OTHER BONDS INSTEAD THEIR FRANTIC SALES OF TREASURY SECURITIES LAST FRIDAY AND MONDAY PLAYED A DIRECT ROLE IN DRIVING THE MARKET LOWER TRADERS SAY MR ASKIN'S NEW YORK FIRM ASKIN CAPITAL MANAGEMENT MANAGED THREE HEDGE FUNDS AND SEVERAL OTHER ACCOUNTS TOTALING 600 MILLION LAST WEEK WALL STREET DEALERS FORCED HIM TO FORFEIT HIS BOND PORTFOLIOS WHICH HE HAD PLEDGED AS COLLATERAL AGAINST BILLIONS OF DOLLARS OF LOANS FROM THOSE FIRMS AS BOND PRICES FELL THE DEALERS CAME TO BELIEVE MR ASKIN'S HOLDINGS WERE WORTH LESS THAN HE OWED THEM AND THEY FORCED A LIQUIDATION OF HIS BUSINESS MANY MONEY MANAGERS DABBLE IN VOLATILE MORTGAGE DERIVATIVES WHOSE RETURNS ARE LINKED TO OR DERIVED FROM POOLS OF MORTGAGE LOANS BUT MR ASKIN'S PORTFOLIO WAS BY FAR THE BIGGEST TRADERS SAY NOT ONLY THAT HE WAS THE ONLY MANAGER TO FINANCE HIS PURCHASES OF THESE RISKY SECURITIES WITH HUGE AMOUNTS OF BORROWED MONEY A TACTIC THAT PROVED TO BE HIS UNDOING MR ASKIN DIDN'T RETURN CALLS SEEKING COMMENT MR ASKIN SPECIALIZED IN BUYING THE MOST VOLATILE AND HARDESTTOPRICE AMONG THESE DERIVATIVES KNOWN AS COLLATERALIZED MORTGAGE OBLIGATIONS CMOS ARE MORTGAGEBACKED BONDS CREATED BY CARVING UP THE INTEREST AND PRINCIPAL CASH FLOWS FROM TRADITIONAL MORTGAGEBACKED BONDS INTO HIGHLY IDIOSYNCRATIC PIECES WHILE SOME CMOS ARE DESIGNED TO BE STAID OTHERS HAVE VOLATILE CASH FLOWS AND CONSEQUENTLY VOLATILE PRICES THESE RISKY PIECES KNOWN AS TOXIC WASTE AMONG TRADERS ARE WHAT'S LEFT OVER WHEN DEALERS FINISH STRIPPING OFF THE PREDICTABLE POPULAR CMOS FOR WALL STREET MR ASKIN WAS THE LATEST IN A STRING OF BUYERS WHOSE APPETITE FOR THOSE MERCURIAL PIECES MADE IT POSSIBLE TO SELL THE REST OF A DEAL IN EFFECT THE FIRMS LENT HIM MONEY TO ENABLE HIM TO BUY CMOS THAT NO ONE ELSE COULD STOMACH IN THE PAST YEAR TOXIC WASTE HAS CREATED PROBLEMS FOR NUMEROUS INSURANCE COMPANIES AND AT LEAST ONE LARGE STATE PENSION FUND MORE RECENTLY IT'S BEEN DUMPED INTO KITCHENSINK BONDS WHICH CONTAIN A HODGEPODGE OF CMOS NO ONE WANTED TO BUY WALL STREET HALTED THAT PRACTICE EARLIER THIS YEAR WHEN THOSE BONDS CAME UNDER SCRUTINY OF THE SECURITIES AND EXCHANGE COMMISSION TRADERS SAY MR ASKIN BECAME AN ESPECIALLY CRITICAL CUSTOMER FOR KIDDER WHICH UNDERWROTE 65 BILLION OF CMOS LAST YEAR MORE THAN TWICE AS MANY AS SECONDRANKED LEHMAN BROTHERS INC KIDDER'S HOLDINGS OF MERCURIAL CMOS IS ESTIMATED BY OTHER TRADERS TO BE AS HIGH AS 700 MILLION A STAKE THAT MAY EVENTUALLY COST IT MORE THAN 100 MILLION IN LOSSES ACCORDING TO TRADERS AT MERRILL LYNCH & CO LEHMAN AND ELSEWHERE KIDDER'S CMO LOSSES RESULTED IN PART FROM BONDS THE FIRM SOLD TO MR ASKIN IN JANUARY FOR MARCH SETTLEMENT WHICH MR ASKIN NEVER PAID FOR AS WELL AS FROM BONDS MR ASKIN HAD USED AS COLLATERAL FOR HIS BORROWINGS KIDDER OFFICIALS DECLINED TO COMMENT ON THESE ESTIMATES WHEN MR ASKIN'S DEALERS FORCED HIM TO TURN OVER HIS CMOS TO THEM THEY FACED A SINGULAR PROBLEM HIS HOLDINGS WERE EXCEPTIONALLY EXPOSED TO RISING INTEREST RATES WITH LOSSES ACCELERATING AS RATES WENT HIGHER ATTEMPTING TO LIMIT THEIR LOSSES DURING THE RECENT SPIKE IN RATES THESE DEALERS SOLD HUGE POSITIONS IN FIVEYEAR AND 10YEAR TREASURY NOTES TRADERS SAY THEIR TWODAY SELLING FRENZY ON FRIDAY AND MONDAY APPEARS TO HAVE HAD A DIRECT IMPACT ON THE YIELDS OF THOSE TREASURY NOTES THE FIVEYEAR NOTE DROPPED NEARLY TWO POINTS TO 96 26/32 A MOVE THAT COST INVESTORS NEARLY 20 FOR EVERY 1000 FACE AMOUNT OF BONDS THE DROP IN THE 10YEAR COST INVESTORS EVEN MORE YESTERDAY THE FEDERAL RESERVE BANK OF NEW YORK SAID IT WOULD REQUIRE PRIMARY DEALERS TO PROVIDE INFORMATION ON THEIR DEALINGS IN THE CURRENT ISSUE OF THE 10YEAR NOTE THERE'S A TON OF ESOTERIC STUFF OUT THERE THAT'S NOT PROPERLY PRICED SAID ONE MERRILL LYNCH TRADER SPEAKING TO A HEDGEFUND CLIENT TUESDAY MORNING THE TRADER PREDICTED THAT INVESTORS' UNCERTAINTIES ABOUT THEIR OWN MORTGAGE HOLDINGS WOULD CONTINUE TO ROIL THE TREASURY MARKET THE IMPACT ON THE TREASURYS IS BY NO MEANS OVER HE SAID NOR IS THE PAIN OVER FOR MR ASKIN'S BELEAGUERED INVESTORS PRICE WATERHOUSE CO WHICH HAD BEEN HIRED BY MR ASKIN TO DO THE YEAREND AUDIT FOR HIS FUNDS FOR 1993 HAS BEEN UNABLE TO COMPLETE THAT TASK ACCORDING TO CHRIS BROWN OF GLENWOOD FINANCIAL GROUP AN INVESTOR ONE REASON SAYS MR BROWN IS BECAUSE MR ASKIN IN DECEMBER BEGAN USING HIS OWN PRICES FOR THE BONDS RATHER THAN GETTING MARKET PRICES FROM WALL STREET EARLIER THIS WEEK THE INVESTORS HIRED CHRISTOPHER HILBERT OF LORD DAY & LORD BARRETT SMITH A NEW YORK LAW FIRM TO FIND OUT WHAT'S LEFT FOR US SAID ONE INVESTOR WE STILL DON'T KNOW WHERE WE STAND 9404080051 940408 WHO'S NEWS FEDERAL RESERVE BANK OF NEW YORK FEDERAL RESERVE BANK OF NEW YORK NEW YORK THIS RESERVE BANK ONE OF 12 DISTRICT BANKS IN THE FEDERAL RESERVE SYSTEM NAMED SEVEN OFFICERS AS SENIOR VICE PRESIDENTS CARL W TURNIPSEED 46 YEARS OLD NEW MANAGER OF THE BANK'S BUFFALO NY BRANCH AND FORMER HEAD OF PERSONNEL KATHLEEN A O'NEIL 42 NAMED HEAD OF PERSONNEL PLANNING AND CONTROL AND PREVIOUSLY HEAD OF INTERNATIONAL BANK EXAMINATIONS AND TERRENCE J CHECKI 48 WHO MOVES TO INTERNATIONAL BANK EXAMINATIONS FROM INTERNATIONAL AFFAIRS FOUR NEW SENIOR VICE PRESIDENTS WHO CONTINUE IN THEIR PREVIOUS DUTIES INCLUDE PETER BAKSTANSKY 53 PUBLIC INFORMATION CHRISTINE M CUMMING 41 BANK ANALYSIS AND SPECIALIZED EXAMINATIONS CHRISTOPHER J MCCURDY 49 BANKING AND PAYMENT STUDIES AND ROBERT A O'SULLIVAN 52 DOMESTIC BANK EXAMINATIONS 9404080050 940408 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON'S AGENDA FOR 1994 FACES ITS ACID TEST AS CONGRESS RETURNS THE NEXT SEVEN WEEKS RUNNING UP TO THE MEMORIAL DAY RECESS WILL BE PIVOTAL IN DETERMINING WHAT AND HOW MUCH CAN BE ACCOMPLISHED GOING INTO THE MIDTERM ELECTIONS ON HEALTH CARE SUCH CRITICAL MATTERS AS TAXES AND THE TREATMENT OF SMALL BUSINESSES WILL GO BEFORE THE FULL HOUSE WAYS AND MEANS AND ENERGY AND COMMERCE COMMITTEES SENATE LEADER MITCHELL HOPES TO STOKE THE HEALTHCARE FIRES AT A DEMOCRATIC RETREAT NEXT WEEKEND THAT THE PRESIDENT IS TO ATTEND MEANWHILE THE BUDGET BLUEPRINT COMING OUT OF A HOUSESENATE CONFERENCE THIS MONTH WILL DEMAND MORE SAVINGS FROM APPROPRIATIONS AT THE EXPENSE OF THE CLINTON INVESTMENT PROGRAM THE CRIME BILL AND RELATED GUNCONTROL PROVISIONS WILL BE TESTED ON THE HOUSE FLOOR THE SENATE FACES SEVERAL ENVIRONMENTAL VOTES IMPORTANT TO THE WEST AS WELL AS CLEANWATER LEGISLATION AFFECTING STATE AND LOCAL GOVERNMENTS THE US CEASES FIRE FOR NOW IN ITS TRADE BATTLE WITH JAPAN SENIOR TRADE OFFICIALS SAY THEY WILL HOLD OFF FILING NEW TRADE CASES INVOLVING FLAT GLASS AND FINANCIAL SERVICES UNTIL AT LEAST THE END OF THE MONTH THEY ALSO PLEDGE TO SOFTEN HARSH RHETORIC BELIEVING JAPAN IS FEELING THE PRESSURE AND IS DEVISING A NEW PLAN TO MEET US CONCERNS OFFICIALS DENY THEIR ATTITUDE IS GUIDED BY FLUCTUATIONS IN THE BOND MARKET OR CONCERN ABOUT NORTH KOREA THEY SAY THE TRADE IMPASSE WITH JAPAN CONTRIBUTES IN ONLY A MINOR WAY TO MARKET WOES KANTOR CALLS SUCH TALK OF A JAPANESE IMPACT ON THE BOND MARKET VASTLY AND WILDLY OVERSTATED IMPATIENCE GROWS WITH ARAFAT AS TALKS DRAG ON US OFFICIALS CONCEDE IT IS NOW VIRTUALLY IMPOSSIBLE TO COMPLETE THE ACCORD AND ISRAELI WITHDRAWAL BY NEXT WEDNESDAY'S ORIGINAL DEADLINE THEY COMPLAIN THAT THE PALESTINIANS KEEP REOPENING ISSUES THAT WERE CONSIDERED RESOLVED SUCH AS THE SIZE OF THE PALESTINIAN POLICE FORCE PALESTINIANS ALSO POSTPONE A SCHEDULED MEETING IN PARIS TO DISCUSS ECONOMIC ARRANGEMENTS WITH ISRAEL MUCH OF THE BLAME IS LAID ON STALLING BY ARAFAT AT PLO HEADQUARTERS IN TUNIS OFFICIALS SAY HE HASN'T YET APPROVED BYLAWS TO SET UP THE PALESTINIAN ORGANIZATION THAT WILL RECEIVE AND DISPENSE FUNDS FROM INTERNATIONAL DONORS AS A RESULT LITTLE MONEY HAS REACHED THE TERRITORIES DESPITE PLEDGES OF 2 BILLION OVER FIVE YEARS US OFFICIALS STRESS TO ARAFAT THAT HE MUST BEGIN TO SHOW ECONOMIC IMPROVEMENTS ON THE GROUND IN ORDER TO BOLSTER HIS ERODING SUPPORT AMONG YOUNG PALESTINIANS CAMELOT REDUX FORMER JFK AIDE AND CONFIDANT THEODORE SORENSEN EMERGES AS A LEADING CANDIDATE TO BE THE PERMANENT WHITE HOUSE COUNSEL BUT SOME CLINTON AIDES SAY THEY ARE SO PLEASED WITH INTERIM COUNSEL LLOYD CUTLER THAT THEY HOPE HE WILL HAVE A CHANGE OF HEART AND STAY ON SEC OFFICIALS ACKNOWLEDGE COMMUNICATIONS FUMBLES THE DAY AFTER MEXICAN CANDIDATE COLOSIO WAS ASSASSINATED THE SEC LED TREASURY DEPARTMENT AND CONGRESSIONAL STAFFERS TO BELIEVE TRADING IN MEXICAN SECURITIES WOULD BE HALTED UNTIL 11 AM BUT THEN ASKED EXCHANGES TO DELAY ONLY UNTIL 10 BENTSEN WAS CAUGHT OFF GUARD WHEN TRADING OPENED WITHOUT WARNING ALL ABOARD PROMINENT DEMOCRATIC WASHINGTON LOBBYISTS AND PR EXECUTIVES CLAMBER ONTO A COMMITTEE FORMED TO DEFEND THE CLINTONS FROM WHITEWATER ATTACKS THE BACK TO BUSINESS COMMITTEE INCLUDES ANNE WEXLER OF THE WEXLER GROUP JODY POWELL OF POWELL/TATE AND LESLIE DACH AND PAUL COSTELLO OF EDELMAN INC THE GROUP ALSO INCLUDES PROMINENT POLITICIANS AND ACADEMICS RING OF RED COURT RECORDS DOCUMENTING TIES BETWEEN TYSON FOODS INC AND HILLARY RODHAM CLINTON'S COMMODITIES BROKER RED BONE REVEAL THAT WHEN BONE FILED FOR PERSONALBANKRUPTCY PROTECTION IN 1985 HE SETTLED PART OF A 270000 DEBT TO TYSON CEO DONALD TYSON BY GIVING HIM A DIAMOND RING VALUED AT 210000 THE PENTAGON PLANS A NEW POLICY TO COUNTER WEAPONS OF MASS DESTRUCTION THE NEW POLICY WHICH WILL BE UNVEILED NEXT MONTH IS AIMED AT TRYING BOTH TO DETER AND DEFEND AGAINST THE USE OF PROLIFERATING NUCLEAR CHEMICAL AND BIOLOGICAL WEAPONS AGAINST US TROOPS THE MILITARY WILL BE ASKED TO RETHINK DEFENSES AGAINST SUCH WEAPONS RANGING FROM VACCINES AGAINST GERM BOMBS TO ANTIMISSILE MISSILES COMMANDERS ALSO WILL BE ASKED TO FOCUS ON ISSUES THAT HAVE BEEN IGNORED SUCH AS PROTECTING CIVILIAN POPULATIONS FROM SCUD ATTACKS THE CIA'S COUNTERPROLIFERATION CENTER WILL BE EXPANDED AS WILL THE DEFENSE INTELLIGENCE AGENCY'S EFFORTS TO DEVELOP TARGETING DATA OFFICIALS DISMISS INTERNAL CRITICS WHO SAY THEY ARE SIMPLY COMING UP WITH WAYS TO FIX PROBLEMS THEY ARE CREATING THEMSELVES BY EASING HIGHTECH EXPORTS MINOR MEMOS A DUKE SIGN AT THE NCAA FINALS HILLARY THERE'S NO FUTURE IN HOGS WILLIAMS ELECTRONICS SAYS IT'S JUST A COINCIDENCE THAT IT MAKES A PINBALL GAME CALLED WHITE WATER THE NAME OF THE RAFT ON THE FRONT DISPLAY WET WILLY AFTER LAST YEAR FERVENTLY OPPOSING THE INTERIOR SECRETARY'S POSSIBLE NOMINATION TO THE SUPREME COURT SOME NOWDISILLUSIONED ENVIRONMENTALISTS CIRCULATE BUMPER STICKERS URGING BABBITT FOR SUPREME COURT 9404080049 940408 BUSINESS BRIEF DELTA AIR LINES CARRIER TO MATCH ITS RIVALS IN FREQUENTFLIER PROGRAM AFTER SPENDING A YEAR STUDYING ITS FREQUENTFLIER PROGRAM DELTA AIR LINES HAD DECIDED IT WILL ESSENTIALLY MATCH THE COMPETITION DELTA'S NEW PROGRAM RENAMED SKYMILES GOES INTO EFFECT MAY 1 1995 THE AIRLINE WILL REDUCE THE NUMBER OF MILES NEEDED FOR A FREE TICKET TO 25000 FROM 30000 AND DECREASE THE MINIMUM MILES A FLIER RECEIVES PER TRIP TO 500 FROM 1000 AND THE ATLANTABASED CARRIER WILL ALSO ADOPT A THREEYEAR EXPIRATION PERIOD TO REDEEM MILEAGE CREDITS SKYMILES IS SIMILAR TO RIVAL PROGRAMS MOST CARRIERS GIVE OUT A MINIMUM OF 500 MILES A TRIP DELTA'S MAIN COMPETITORS UAL CORP'S UNITED AIRLINES AND AMR CORP'S AMERICAN AIRLINES RECENTLY ANNOUNCED THAT THEY'RE MOVING THEIR REDEMPTION LEVELS TO 25000 FROM 20000 THREEYEAR EXPIRATION DATES ON MILES ARE COMMON IN THE INDUSTRY BUT DELTA TRAVELERS APPEAR TO HAVE AN EDGE HERE THE AIRLINE SAYS ITS CUSTOMERS WILL NOT LOSE THEIR CREDITS IF THEY FLY AT LEAST ONCE EVERY THREE YEARS 9404080048 940408 BUSINESS BRIEF UNITED RETAIL GROUP INC TOTAL MARCH SALES ROSE 17 FISCAL 1STPERIOD NET TO FALL UNITED RETAIL GROUP INC SAID MARCH SALES ROSE 17 TO 356 MILLION FROM 305 MILLION WHILE SALES AT STORES OPEN AT LEAST A YEAR ROSE 11 THIS YEAR'S RESULTS BENEFITED FROM AN EARLIER EASTER WEEK SALES SO FAR THIS FISCAL YEAR ROSE 9 TO 575 MILLION FROM 529 MILLION AND SAMESTORE SALES ROSE 4 UNITED RETAIL WHICH OPERATES RETAIL CHAINS DEVOTED TO LARGESIZE WOMEN'S CLOTHING AND IS BASED IN ROCHELLE PARK NJ SAID AVERAGE STORE INVENTORY LEVELS AT MONTH END WERE SLIGHTLY ABOVE LAST YEAR'S LEVELS WHILE MERCHANDISE PROFIT MARGINS WERE LOWER THAN A YEAR AGO RAPHAEL BENAROYA CHAIRMAN PRESIDENT AND CEO SAID THAT IN PART DUE TO THE LOWER MARGINS IT IS VERY LIKELY THAT EARNINGS IN THE FIRST QUARTER ENDING MAY 1 WOULD BE LOWER THAN A YEAR AGO WHEN NET INCOME WAS 23 MILLION OR 17 CENTS A SHARE ON SALES OF 829 MILLION 9404080047 940408 WHAT'S NEWS BUSINESS AND FINANCE BIG RETAILERS REPORTED SURPRISINGLY STRONG SALES GAINS IN MARCH AS AN EARLY EASTER AND WARMER WEATHER INSPIRED SHOPPERS TO LOAD UP ON SPRING GOODS EVEN AFTER ACCOUNTING FOR THE HOLIDAY AND THE SUNSHINE ANALYSTS WERE STARTLED AT THE HEARTY ACROSSTHEBOARD SALES INCREASES ESPECIALLY FOR APPAREL WHERE SALES HAD BEEN CHRONICALLY WEAK MARCH SALES FOR STORES OPENED AT LEAST A YEAR SOARED 11 FROM A YEAR EARLIER A SHIFT IN CONSUMER SPENDING THIS YEAR IS EXPECTED TO PUT MORE BOUNCE IN THE SALES OF APPAREL NAMEBRAND FOODS AND OTHER NONDURABLE PRODUCTS US BUSINESSES PLAN TO SPEND 8 MORE ON NEW PLANTS AND EQUIPMENT IN 1994 THAN IN 1993 A SURVEY SHOWS THE REPORT ALONG WITH TWO OTHERS SUGGESTS THE ECONOMY IS GROWING THOUGH MORE MODERATELY THAN IN THE FOURTH PERIOD BUSINESSES ARE INCREASING THEIR BORROWINGS FROM BANKS TO HELP FINANCE EXPANSION PLANS ADDING FUEL TO THE ECONOMY AND SOME MUCHNEEDED REVENUE TO THE BANKING INDUSTRY TRUCK COMPANIES FIGHTING A TEAMSTERS STRIKE FACE ANOTHER BATTLE AS CONGRESS APPEARS CLOSE TO PASSING A BILL THAT WOULD FREE UP LARGER DELIVERY COMPANIES TO COMPETE WITH THEM THE NATIONAL LABOR RELATIONS BOARD IS MULLING RULES GIVING UNIONS MORE ACCESS TO EMPLOYEES AT WORK THE BOARD IS WEIGHING PROPOSALS TO ALLOW UNIONS EQUAL TIME WHEN COMPANIES FORCE EMPLOYEES TO ATTEND ANTIUNION MEETINGS DURING WORK HOURS GOLDEN WEST FINANCIAL PLANS TO ENTER THE BIDDING FOR FORD MOTOR'S UNPROFITABLE THRIFT UNIT THE UNIT FIRST NATIONWIDE FINANCIAL HAS SET A MONDAYNIGHT DEADLINE FOR BIDS BEAR STEARNS WAS ACCUSED IN A SUIT BY AN INVESTMENT FUND OF MAKING AN UNAUTHORIZED MORTGAGE DERIVATIVES TRADE AND MAKING UNREASONABLE DEMANDS TO PUT UP MORE MONEY THE LAWSUIT FOLLOWS RECENT UPHEAVAL IN THE MORTGAGEBACKED SECURITIES MARKET THE NEW YORK TIMES NAMED AS MANAGING EDITOR EUGENE ROBERTS JR WHO LEFT IN 1972 TO BECOME EXECUTIVE EDITOR OF THE PHILADELPHIA INQUIRER ARMCO WAS SUED BY THE PENSION BENEFIT GUARANTY CORP WHICH SEEKS TO RECOUP ABOUT 214 MILLION IN PENSION UNDERFUNDING PLUS INTEREST FOR A PENSION PLAN OF A FORMER ARMCO UNIT SALES OF APPLE'S NEW LINE OF POWER MACINTOSHES ARE RUNNING AHEAD OF EXPECTATIONS IN MANY STORES GIVING THE COMPANY EARLY MOMENTUM IN ITS QUEST TO BOOST SLOWED MARKETSHARE GROWTH A GROUP OF MAJOR COMPANIES IS EXPECTED TO LAUNCH A LARGESCALE EFFORT TO TRANSACT BUSINESS ON THE INTERNET TELECOMMUNICATIONS UNVEILED A 100 MILLION DIGITALCOMPRESSION CENTER WHICH WILL ALLOW CABLE OPERATORS TO GREATLY EXPAND CHANNEL CAPACITY CHRYSLER DISCLOSED A THIRD PROBLEM IN ITS NEW NEON SMALL CAR FURTHER DAMAGING THE AUTO MAKER'S ALREADY SHAKY REPUTATION FOR QUALITY FEDERAL SAFETY OFFICIALS SAID THE NEON WAS RECALLED A THIRD TIME TO FIX A BRAKE BRACKET WHICH CHRYSLER CALLED A ROUTINE MAINTENANCE PROCEDURE GOLDMAN SACHS NAMED A JAPANESE BANKER AS CHAIRMAN OF ITS AFFILIATED JAPANESE FIRM REFLECTING GOLDMAN'S AMBITIONS FOR CLOSER TIES WITH JAPAN HIDEO ISHIHARA HAD BEEN AT INDUSTRIAL BANK OF JAPAN FOR 40 YEARS BONDS LEHMAN BROTHERS TREASURY INDEX 513851 UP 1691 COMMODITIES OIL 1557 A BARREL OFF 21 CENTS DOW JONES FUTURES INDEX 13977 OFF 026 SPOT INDEX 13163 UP 004 DOLLAR 10490 YEN UP 035 17165 MARKS UNCHANGED 9404080046 940408 ILLINOIS COMPROMISE ADVANCES LEGISLATION FOR CASINO COMPLEX CHICAGO ILLINOIS GOV JIM EDGAR AND CHICAGO MAYOR RICHARD M DALEY REACHED A COMPROMISE ON GAMBLING LEGISLATION THAT WOULD AUTHORIZE FIVE DOCKSIDE CASINOS AND AN 800 MILLION ENTERTAINMENT COMPLEX ALONG THE CHICAGO RIVER THE LEGISLATION INTRODUCED YESTERDAY CALLS FOR FIVE DOCKSIDE CASINOS WITH 1200 GAMBLING POSITIONS EACH EACH CASINO LICENSEE WOULD BE REQUIRED TO CONTRIBUTE AT LEAST 100 MILLION TO HELP FINANCE THE INDOOR ENTERTAINMENT CENTER AND THE STATE'S GAMBLING TAX WOULD BE MAINTAINED AT ITS CURRENT LEVEL OF 20 OF GROSS RECEIPTS THE BILL ALSO INCLUDES AN UNDEFINED PERPERSON ADMISSIONS CHARGE WHICH CASINO COMPANIES ESTIMATED WOULD BE ABOUT 6 TO RAISE MONEY FOR THE CITY'S SCHOOLS TOTAL DIRECT AND INDIRECT TAX REVENUES WOULD BE AROUND 200 MILLION FOR THE STATE 50 MILLION FOR THE CITY AND 50 MILLION TO 65 MILLION FOR THE SCHOOLS MAYOR DALEY'S OFFICE SAID SEVERAL MAJOR CASINO OPERATORS INCLUDING CIRCUS CIRCUS ENTERPRISES INC HILTON HOTELS CORP CAESARS WORLD INC MIRAGE RESORTS INC AND PROMUS COS HAVE EXPRESSED STRONG INTEREST IN THE CHICAGO MARKET ALTHOUGH MANY DETAILS OF THE PLAN HAVE YET TO BE IRONED OUT MAYOR DALEY'S OFFICE ALSO HAS CONTACTED BIG ENTERTAINMENT COMPANIES SUCH AS MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC UNIT SONY CORP TIME WARNER AND WALT DISNEY CO ABOUT OPERATING THE ENTERTAINMENT COMPLEX DISNEY RELUCTANT TO ASSOCIATE ITSELF WITH GAMING IS SAID TO BE UNINTERESTED A SPOKESWOMAN FOR TIME WARNER'S SIX FLAGS SUBSIDIARY SAID SHE WAS UNAWARE OF THE CONTACT THE OTHERS CONFIRMED THEIR INTEREST IN THE PROJECT MCA HAS HAD THE MOST DISCUSSIONS EXECUTIVES SAY 9404080044 940408 WHAT'S NEWS WORLDWIDE ISRAEL SEALED OFF THE OCCUPIED TERRITORIES AND NEW VIOLENCE ERUPTED THE ARMY BARRED 18 MILLION PALESTINIANS FROM ENTERING ISRAEL FOR A WEEK IN AN EFFORT TO COMBAT A WAVE OF ATTACKS THE ORDER ONE OF THE STRICTEST EVER IMPOSED CAME A DAY AFTER A MUSLIM FUNDAMENTALIST SET OFF A CAR BOMB THAT KILLED EIGHT PEOPLE IN NORTHERN ISRAEL IN NEW ATTACKS AN ISRAELI WAS KILLED AND FOUR WOUNDED IN SOUTHERN ISRAEL WHEN A PALESTINIAN OPENED FIRE AT A BUS STOP TWO ISRAELIS WERE ALSO STABBED AND SLIGHTLY WOUNDED BY ARABS AT ENTRANCES TO THE GAZA STRIP THE US WAS DISSATISFIED WITH THE PLO'S OFFER OF CONDOLENCES TO FAMILIES OF ISRAELI VICTIMS WE WISH THEY WOULD CONDEMN THE VIOLENCE SECRETARY OF STATE CHRISTOPHER SAID CIVIL WAR BROKE OUT IN RWANDA AND ITS PRIME MINISTER WAS SLAIN VIOLENCE ERUPTED IN THE SMALL AFRICAN NATION A DAY AFTER A ROCKET ATTACK DOWNED A PLANE CARRYING ITS PRESIDENT AND THE PRESIDENT OF NEIGHBORING BURUNDI KILLING BOTH AS FIGHTING SWEPT THE RWANDAN CAPITAL KIGALI THE COUNTRY'S PRIME MINISTER WAS KILLED AND AT LEAST 11 BELGIAN UN PEACEKEEPERS WERE SLAIN BY THE PRESIDENTIAL GUARD AMID THE UNREST THREE CABINET MINISTERS WERE REPORTED ABDUCTED AND 17 JESUIT RWANDAN PRIESTS WERE SAID TO HAVE BEEN KILLED IN BURUNDI WHERE 100000 PEOPLE DIED IN ETHNIC VIOLENCE AFTER THE OCTOBER ASSASSINATION OF ITS PREVIOUS PRESIDENT DIPLOMATS SAID THE CAPITAL WAS QUIET BOSNIAN MUSLIMS AND SERBS AGREED TO A 24HOUR TRUCE AS A GOODWILL GESTURE WHILE THEY CONSIDER WHETHER TO SIGN A PERMANENT CEASEFIRE AGREEMENT UN MILITARY OFFICIALS ANNOUNCED IN WASHINGTON THE CLINTON ADMINISTRATION CALLED FOR THE QUICK DISPATCH OF HUNDREDS OF UN PEACEKEEPERS TO SERBENCIRCLED GORAZDE IN EASTERN BOSNIA BRITAIN'S MAJOR REJECTED A NEW CALL FOR DIRECT TALKS WITH THE LEADER OF THE IRISH REPUBLICAN ARMY'S POLITICAL WING WHO SAID THE GROUP'S THREEDAY TRUCE IN NORTHERN IRELAND WOULDN'T BE EXTENDED BEYOND THE WEEKEND MEANWHILE THE BRITISH MINISTER FOR NORTHERN IRELAND DISMISSED THE TRUCE ANNOUNCEMENT AS AN IRA PLOY POLICE MUST POSSESS WARRANTS TO CONDUCT GUN SWEEPS IN PUBLICHOUSING PROJECTS EVEN IF RESIDENTS SUPPORT WARRANTLESS SEARCHES A FEDERAL JUDGE IN CHICAGO SAID HIS RULING CONTINUED AN INJUNCTION HE ISSUED LAST MONTH THE CHICAGO HOUSING AUTHORITY CONTENDS ITS ANTICRIME EFFORTS ARE BEING THWARTED BY DRAWNOUT LEGAL PROCEDURES NORTH KOREA IS PREPARED TO LEAP FORWARD IN ITS NUCLEAR WEAPONS PROGRAM AND PLUTONIUM PRODUCTION CAPACITY DESPITE INTERNATIONAL PRESSURES US ASSISTANT DEFENSE SECRETARY ASHTON CARTER SAID HE REFERRED TO A NEW NUCLEAR MATERIAL REPROCESSING FACILITY BEING BUILT IN YONGBYON A DAYCARE SURVEY WAS CRITICAL OF THE QUALITY OF CARE GIVEN BY INHOME PROVIDERS AND FOUND THAT MANY OF THE CHILDREN STUDIED DIDN'T FEEL SECURE WITH THEIR CAREGIVERS UNEXPECTEDLY THE SURVEY ALSO FOUND THAT CHILDREN ARE MORE LIKELY TO BE SECURELY ATTACHED TO CAREGIVERS WHO AREN'T RELATED TO THEM WASHINGTON IS SEEKING REVISIONS IN A UN DRAFT DOCUMENT ON STABILIZING GLOBAL POPULATION GROWTH WITH THE US HOPING TO INCLUDE STRONGER LANGUAGE ON THE IMPORTANCE OF ACCESS TO ABORTION SERVICES THE DRAFT IS ALREADY UNDER ATTACK BY ROMAN CATHOLICS AND ANTIABORTION ACTIVISTS TWENTY BLACKS WERE KILLED IN SCATTERED FIGHTING THROUGHOUT SOUTH AFRICA'S NATAL PROVINCE DESPITE THE ADDITION OF 700 GOVERNMENT TROOPS TO THE REGION SECURITY FORCES SAID THE HEAD OF THE NATIONAL ELECTION COMMISSION SAID THE VIOLENCE WOULDN'T FORCE A POSTPONEMENT OF THIS MONTH'S BALLOTING IN NATAL AND THE KWAZULU BLACK HOMELAND COLOMBIA ANGRILY REJECTED US CLAIMS THAT WIDESPREAD CORRUPTION IN BOGOTA WAS HAMPERING THE FIGHT AGAINST MEMBERS OF THE CALI COCAINE CARTEL THE STATE DEPARTMENT THIS WEEK RELEASED A REPORT CITING CORRUPTION AS A PROBLEM IN THE ANTIDRUG EFFORT AS WELL AS THE LENIENT SENTENCES HANDED DOWN TO CONVICTED DRUG TRAFFICKERS BEIJING ACCUSED THE US OF IRRESPONSIBLE MEDDLING IN CHINA'S INTERNAL AFFAIRS BY EXPRESSING CONCERN OVER DETAINED DISSIDENT WEI JINGSHENG CHINA'S DETENTION OF WEI HAS REVIVED A DISPUTE WITH THE STATE DEPARTMENT OVER HUMAN RIGHTS CLINTON HAS SAID HE WON'T RENEW BEIJING'S TRADE PRIVILEGES UNLESS SIGNIFICANT PROGRESS IS MADE BY JUNE 9404080043 940408 BUSINESS BRIEF WESTERN DIGITAL CORP COMPUTER ELECTRONICS MAKER POSTS SALES EARNINGS SURGE WESTERN DIGITAL CORP POSTED SHARPLY HIGHER EARNINGS FOR ITS THIRD QUARTER ENDED MARCH 26 LIFTING ITS SHARES ON THE NEW YORK STOCK EXCHANGE 125 TO 1950 THE IRVINE CALIFBASED MAKER OF COMPUTER ELECTRONICS AND STORAGE EQUIPMENT SAID IT POSTED NET INCOME OF 284 MILLION OR 64 CENTS A SHARE COMPARED WITH 16 MILLION OR FIVE CENTS A SHARE IN THE YEARAGO PERIOD SALES ROSE BY 29 TO 421 MILLION COMPARED WITH 3254 MILLION IN THE YEARAGO QUARTER WESTERN DIGITAL CREDITED STRONG DEMAND AND SMALLERTHANEXPECTED DECLINES IN PRICES FOR ITS SOLID RESULTS 9404080042 940408 CORPORATE FOCUS SYNTEX IS SUFFERING FROM CHALLENGE BY GENERIC DRUGS EXPIRED PATENTS ON FLAGSHIP PRODUCTS SPELL PLUNGING SALES AND EARNINGS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL TWO OR THREE YEARS AGO SYNTEX CORP WAS THE POTENTATE OF PAINKILLERS ITS FLAGSHIP PRODUCTS THE ANTIINFLAMMATORY DRUGS NAPROSYN AND ANAPROX REACHED 1 BILLION IN SALES OR HALF THE COMPANY'S TOTAL REVENUE SYNTEX REAPED 80 GROSS PROFIT MARGINS THAT WERE THE ENVY OF THE DRUG INDUSTRY BUT THE DRUGS' PATENT EXPIRED IN DECEMBER AND SYNTEX WAS HAMMERED BY A RAPID DROP IN PRICE FOR GENERIC VERSIONS INCLUDING THOSE SOLD BY ITS OWN UNIT HAMILTON PHARMA THE DOWNWARD SPIRAL LED TO DISCOUNTS 80 TO 85 LOWER THAN THE BRANDED DRUGS THE COMPANY'S STOCK HAS SKIDDED BELOW 14 A SHARE REPRESENTING A MORE THAN 92 BILLION DROP IN MARKET VALUE SINCE ITS 56ASHARE APEX IN 1992 IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SYNTEX SHARES WERE DOWN 125 CENTS AT 13625 THE LEVEL OF GENERIC EROSION IS UNPARALLELED SAYS RONALD NORDMANN MANAGING DIRECTOR AND ANALYST AT PAINEWEBBER INC IN NEW YORK NO DRUG HAS COLLAPSED AS RAPIDLY AS NAPROSYN YOU LIVE BY THE SWORD AND DIE BY THE SWORD SYNTEX'S PROBLEMS ARE COMPOUNDED BY A DEARTH OF PROMISING NEW DRUGS IN ITS RESEARCHANDDEVELOPMENT PIPELINE ANALYSTS NOW EXPECT EARNINGS FOR THE YEAR ENDING JULY 31 WILL FALL TO BETWEEN 125 A SHARE AND 155 A SHARE LAST YEAR PROFIT WAS 220 A SHARE BEFORE A 249 MILLION RESTRUCTURING CHARGE DEPRESSED PROFIT TO 129 FURTHER EROSION IS FORECAST FOR FISCAL 1995 AMID THIS GRIM OUTLOOK SYNTEX HAS EMBARKED ON A STRATEGY MANY OTHER COMPANIES HAVE SHUNNED IT'S CANNIBALIZING ITS OWN BRANDED LINE BY AGGRESSIVELY MARKETING THE GENERIC VERSION OF NAPROSYN CALLED NAPROXEN THROUGH ITS HAMILTON UNIT BY NOT FLINCHING FROM HUGE PRICE CUTS HAMILTON HAS SUCCEEDED IN RETAINING THE LION'S SHARE OF GENERIC NAPROXEN SALES AND EVEN SELLS BULK CHEMICALS TO ITS COMPETITORS IN THE TRADE SYNTEX ALSO PLANS AN EXPENSIVE MARKET LAUNCH OF AN OVERTHECOUNTER VERSION OF NAPROXEN ALEVE WITH PROCTER & GAMBLE CO THIS TOO IS EXPECTED TO LOSE MONEY IN THE SHORT RUN THE IDEA IS TO PROTECT REVENUES AND MARKET SHARE AT THE COST OF THE BOTTOM LINE THEY DON'T HAVE A CHOICE OBSERVES JOSEPH RICCARDO AN ANALYST AT BEAR STEARNS & CO IN NEW YORK ADDS ARVIND DESAI AN ANALYST WITH NEW YORKBASED MEHTA & ISALY YOU HAVE TO PROTECT THE TOP LINE IN DESPERATE SITUATIONS LIKE THIS THEY HAD TO GO IN AT LOWER AND LOWER PRICES TO MATCH THE ONSLAUGHT OF THE GENERIC DRUGS SOME MIGHT WONDER WHETHER SYNTEX HAS BEEN TOO ZEALOUS IN PROMOTING ITS GENERIC NAPROXEN TO PROTECT SHARE BUT AS MR NORDMANN POINTS OUT THERE WERE FEW OPTIONS SYNTEX LOST THE PATENT ON NAPROSYN IN DECEMBER 1993 AND WITHIN FIVE WEEKS 10 GENERIC COMPANIES ENTERED THE MARKETPLACE THE MOST AGGRESSIVE PRICECUTTER WAS PRICING ITS NAPROSYN KNOCK OFF AT MORE THAN AN 80 PRICE CUT IT SEEMS LIKE IT'S REALLY A BIT OF A DEAD END FOR THEM RIGHT NOW MR DESAI SAYS FOR ANALYSTS TO USE WORDS LIKE DEAD END AND DESPERATE TO DESCRIBE THE PLIGHT OF THE PALO ALTO CALIF COMPANY WOULD HAVE BEEN UNTHINKABLE IN THE HALCYON DAYS OF 1991 AND 1992 BACK THEN THE COMPANY SPENT LAVISHLY NEARLY ONE FIFTH OF ITS REVENUE ON R&D AND PROUDLY BOASTED OF HAVING 50 COMPOUNDS UNDER DEVELOPMENT BUT TODAY AFTER BELTTIGHTENING IT HAS A MUCH THINNER RESEARCH PIPELINE OF SEVEN DRUGS COUPLED WITH THE FAILURE SO FAR OF FOUR OTHER PRODUCTS TO OFFSET THE LOSS IN NAPROXEN SALES THIS SITUATION COULD LAST YEARS BEFORE RELIEF IS IN SIGHT FOR NOW HOWEVER THERE'S NO NEW REVENUE GUSHER IN SIGHT FOR SYNTEX VERY DETERMINED EFFORTS ARE BEING MADE BY SYNTEX SAYS MR DESAI TO PUMP UP SALES TO OFFSET AN EXPECTED 300 MILLION PLUNGE IN NAPROXEN SALES FROM FOUR OTHER PRODUCTS TORADOL FOR POSTSURGICAL PAIN HAS FLAT SALES AT 320 MILLION A YEAR SYNAREL A HORMONE SPRAY FOR TREATMENT OF UTERINE DISORDERS SLIPPED SLIGHTLY AMID COMPETITION TO ABOUT 17 MILLION A YEAR CYTOVENE FOR AN INFECTION THAT CAUSES BLINDNESS IN AIDS PATIENTS AND OTHERS ROSE MODESTLY TO ABOUT 88 MILLION IN ANNUALIZED SALES TICLID FOR STROKE AND HEART DISEASE JUMPED TO ABOUT 70 MILLION IN ANNUALIZED SALES FROM 45 MILLION LAST YEAR BY LATE 1995 TO EARLY 1996 SYNTEX MAY BE IN LINE FOR SOME REVENUE RELIEF THIS IS DEPENDENT ON SUCCESS IN THREE OR FOUR PRODUCT MOVES INCLUDING GETTING APPROVAL FOR AN ORAL FORM OF CYTOVENE WINNING A EXPANDED APPROVAL FOR TORADOL BASED UPON CURRENT SAFETY STUDIES IN 10000 PATIENTS GROWTH OF TICLID SALES AND MARKET APPROVAL OF A NEW DRUG TO PREVENT THE REJECTION OF KIDNEY TRANSPLANTS SYNTEX'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER PAUL FREIMAN DECLINED TO BE INTERVIEWED FOR THIS ARTICLE HOWEVER HE ISSUED A STATEMENT ACKNOWLEDGING THE SERIOUSNESS OF THE PATENT EXPIRATION WE'RE IN FOR A COUPLE OF DIFFICULT YEARS HE SAID BUT MR FREIMAN STRESSED SYNTEX THROUGH ITS ITS RECENT BELTTIGHTENING GENERIC SALES AND OVERTHECOUNTER PRODUCT STRATEGY WAS SERIOUS ABOUT BECOMING MORE COMPETITIVE DESPITE A PAINFUL RESTRUCTURING PROGRAM SLASHING EMPLOYMENT TO 9500 FROM 11700 BY 1995 AND CLOSING FACILITIES IN THE US FRANCE BRITAIN AND CANADA SOME ANALYSTS FEEL SYNTEX IS STILL OVERSPENDING IF CASH PROBLEMS DEVELOP THE SCENT OF A DISTRESSED COMPANY COULD INVITE TAKEOVER SHARKS IN SUCH AN ATMOSPHERE SYNTEX' DIVIDEND OF 104 A YEAR A MAJOR SUPPORT AGAINST FURTHER STOCKPRICE EROSION COULD BECOME VULNERABLE TOO IF THE DIVIDEND IS SUSPENDED AND THE STOCK WEAKENS FURTHER WALL STREET EXPECTS POTENTIAL INTEREST IN A TAKEOVER COULD BLOSSOM BUT EVEN HERE SYNTEX HAS PROBLEMS THAT COULD BLOCK ITS ACQUISITION DESPITE BEING BASED IN THE LEAFY UNIVERSITY TOWN OF PALO ALTO SYNTEX IS CHARTERED IN PANAMA A TROPICAL TAX SHELTER AMONG THE VERY FINEST IN THE WORLD SAYS PAINEWEBBER'S MR NORDMANN WHICH ALLOWS THE COMPANY AN EFFECTIVE CORPORATE TAX RATE OF 6 THAT'S JUST A FRACTION OF THE AVERAGE DRUG COMPANY'S TAX RATE FOR 1994 WHICH WILL BE ABOUT 34 HE SAYS ANALYSTS ARE BETTING THE INTERNAL REVENUE SERVICE WOULD FROWN ON ANY SUITOR'S EFFORT TO CLAIM THIS TAX BENEFIT THUS MR NORDMANN SAYS ANY ACQUIRING US COMPANY WOULD FIND SYNTEX'S DECLINING EARNINGS BASE FULLY TAXED WHICH MEANS THE COMPANY WOULD NOT BE WORTH EVEN 14 A SHARE 9404080040 940408 BUSINESS BRIEF BARNES & NOBLE INC CHAIRMAN INVESTING GROUP TO SELL TWO MILLION SHARES BOOK RETAILER BARNES & NOBLE INC SAID ITS CHAIRMAN AND AN INVESTING GROUP PLAN TO SELL TWO MILLION SHARES OF THE COMPANY VALUED AT ABOUT 49 MILLION AT CURRENT PRICES BARNES & NOBLE SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE OFFERING THE COMPANY WON'T RECEIVE ANY OF THE PROCEEDS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BARNES & NOBLE SHARES CLOSED AT 2450 DOWN 125 CENTS OR 05 THE ANNOUNCEMENT SAID LEONARD RIGGIO CHAIRMAN AND CHIEF EXECUTIVE OFFICER PLANS TO SELL 15 MILLION SHARES AFTER THE OFFERING HE WILL OWN ABOUT 26 OF THE COMPANY'S COMMON STOCK THE OTHER SHAREHOLDER SELLING 500000 SHARES OR ABOUT HALF ITS POSITION IS PRINCES GATE INVESTORS LP AND RELATED INVESTORS IT IS AN INVESTMENT FUND AFFILIATED WITH MORGAN STANLEY & CO THE LEAD UNDERWRITER 9404080039 940408 BUSINESS BRIEF FLUOR CORP DOE RUN BUSINESS IS SOLD TO AFFILIATE OF RENCO GROUP FLUOR CORP SAID IT HAS SOLD ITS DOE RUN CO LEAD MININGANDMILLING BUSINESS TO AN AFFILIATE OF CLOSELY HELD RENCO GROUP OF NEW YORK THE PRICE WASN'T DISCLOSED FLUOR IN IRVINE CALIF WHICH HAD ANNOUNCED ITS DECISION TO EXIT THE LEAD BUSINESS IN LATE 1992 SAID IT WILL BE PAID IN CASH AN INTERESTBEARING NOTE AND PARTICIPATION IN DOE RUN'S FUTURE PROFITABILITY HOWEVER THE SALE WILL HAVE NO IMPACT ON FLUOR'S EARNINGS WITH SIX MINES FOUR MILLS AND TWO SMELTERS ST LOUISBASED DOE RUN IS THE LARGEST INTEGRATED PRODUCER OF LEAD METAL IN NORTH AMERICA FLUOR VALUED ITS LEAD OPERATIONS AS A DISCONTINUED BUSINESS AT ABOUT 173 MILLION IN THE COMPANY'S 1993 ANNUAL REPORT THE UNIT HAD FISCAL 1993 REVENUE OF 121 MILLION WHICH WERE NOT INCLUDED IN FLUOR'S CONSOLIDATED RESULTS THE RENCO GROUP IS A HOLDING COMPANY WITH INVESTMENTS IN NATURAL RESOURCES AND INDUSTRIAL OPERATIONS 9404080038 940408 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE APRIL 14 2004 PRICED AT PAR TO YIELD 7445 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS AND WAS PRICED AT A SPREAD OF 52 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH MITCHELL INVESTMENT GROUP INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF MEDIUMTERM NOTES DUE APRIL 14 2004 PRICED AT PAR TO YIELD 737 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS AND WAS PRICED AT A SPREAD OF 52 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC PHILIPS ELECTRONICS NV 250 MILLION OF NOTES DUE APRIL 15 2004 PRICED AT PAR TO YIELD 775 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 88 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SHAWMUT BANK CONNECTICUT NA 250 MILLION OF BANK NOTES DUE APRIL 15 1996 PRICED AT PAR THROUGH LEAD MANAGER LEHMAN BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR ONE YEAR AND FLOATS AND PAYS QUARTERLY AT A SPREAD OF 23 BASIS POINTS ABOVE THE LONDON INTERBANK OFFERED RATE SHAWMUT BANK CONNECTICUT IS A UNIT OF SHAWMUT NATIONAL CORP STUDENT LOAN MORTGAGE ASSOCIATION 100 MILLION OF MULTIPLE STEPUP NOTES DUE APRIL 29 2004 PRICED INITIALLY AT PAR TO YIELD 625 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES APRIL 29 1996 TO 7 THEN TO 75 APRIL 29 1997 TO 8 APRIL 29 1998 TO 9 APRIL 29 1999 TO 10 APRIL 29 2000 TO 11 APRIL 29 2001 TO 12 APRIL 29 2002 AND TO 13 APRIL 29 2003 THE ISSUE IS NONCALLABLE FOR TWO YEARS AND WAS PRICED AT A SPREAD OF 165 BASIS POINTS ABOVE 10YEAR TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST TENNESSEE BANK WACHOVIA BANK OF NORTH CAROLINA NA 125 MILLION NOTES PRICED IN TWO PARTS THROUGH LEAD MANAGER GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 50 MILLION OF BANK NOTES DUE APRIL 14 1997 WAS PRICED AS 605S AT 99613 TO YIELD 6193 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 75 MILLION OF NOTES DUE APRIL 14 1999 WAS PRICED AS 67S AT 99557 TO YIELD 6806 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 37 BASIS POINTS ABOVE TREASURYS THE NOTES ARE RATED DOUBLEA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAPLUS BY STANDARD & POOR'S CORP WACHOVIA BANK IS A UNIT OF WACHOVIA CORP CERPLEX GROUP INC INITIAL OFFERING OF 25 MILLION COMMON SHARES PRICED AT 11 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND COMANAGER MONTGOMERY SECURITIES CFM INTERNATIONAL INC INITIAL PUBLIC OFFERING OF FOUR MILLION COMMON SHARES AT 75 CANADIAN DOLLARS EACH THROUGH UNDERWRITERS RESEARCH CAPITAL CORP MIDLAND WALWYN CAPITAL INC AND FIRST MARATHON SECURITIES LTD HEMASURE INC INITIAL PUBLIC OFFERING OF 22 MILLION COMMON SHARES PRICED AT 7 EACH THROUGH UNDERWRITER D BLECH & CO ACCORDING TO THE COMPANY HERITAGE MEDIA CORP 37 MILLION COMMON SHARES PRICED AT 17 EACH THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC VIVUS INC INITIAL OFFERING OF 21 MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES AND INVEMED SECURITIES WANDEL & GOLTERMANN TECHNOLOGIES INC INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 11 EACH THROUGH UNDERWRITERS LED BY ROBINSONHUMPHREY CO AND INTERSTATE/JOHNSON LANE CORP FEDERAL NATIONAL MORTGAGE ASSOCIATION 5005 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 199479 IS BACKED BY FANNIE MAE'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS ABB INTERNATIONAL FINANCE NV SWISSSWEDISH PARENT 150 MILLION SWISS FRANCS OF 45 PUBLIC BONDS DUE MAY 18 2000 PRICED AT 102375 VIA CREDIT SUISSE FEES 225 BAYERISCHE LANDESBANK GIROZENTRALE GERMANY 100 MILLION CANADIAN DOLLARS OF 85 EUROBONDS DUE MAY 4 2004 AT ISSUE PRICE 100924 VIA SCOTIA MCLEOD INC REOFFERED AT 99249 TO YIELD 862 A MARGIN OF 35 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND FEES TWO HONDA INTERNATIONAL FINANCE BV JAPANESE PARENT 10 BILLION YEN OF 31 EUROBONDS DUE JULY 29 1996 AT ISSUE AND REOFFER PRICE 10046 VIA MERRILL LYNCH INTERNATIONAL LTD BONDS YIELD 289 KEEPWELL AGREEMENT WITH HONDA MOTOR CO FEES 025 NORTHERN ROCK BUILDING SOCIETY UK 100 MILLION OF FLOATINGRATE NOTES DUE APRIL 1998 AT ISSUE PRICE PAR VIA KLEINWORT BENSON LTD AND SG WARBURG SECURITIES LTD REOFFERED AT 9981 PAYABLE QUARTERLY AT THREEMONTH LIBOR PLUS 125 BASIS POINTS CALLABLE QUARTERLY FROM APRIL 1996 AT PAR ISSUED OFF EUROMEDIUMTERM NOTE PROGRAM FEES 034 NORWEST FINANCIAL CANADA INC US PARENT 75 MILLION CANADIAN DOLLARS OF 85 EUROBONDS DUE MAY 12 1999 AT AN ISSUE PRICE OF 100275 VIA LEAD UNDERWRITER WOOD GUNDY INC THE BONDS ARE BEING REOFFERED AT 98675 TO YIELD 884 A MARGIN OF 79 BASIS POINTS OVER THE 775 CANADIAN GOVERMENT BOND OF 1999 THE ISSUE IS GUARANTEED BY NORWEST FINANCIAL INC THE BORROWER'S SENIOR DEBT OUTSTANDING IS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P FEES 1875 THERMO ELECTRON CORP US 300 MILLION OF 5 SENIOR CONVERTIBLE EURO DEBENTURES DUE APRIL 2001 AT ISSUE PRICE PAR VIA LEHMAN BROTHERS INTERNATIONAL DEBENTURES CONVERTIBLE FROM 60 DAYS AFTER PAYMENT DATE AT CONVERSION PRICE 4725 A PREMIUM OF 1489 OVER WEDNESDAY'S CLOSING SHARE PRICE CALLABLE FROM APRIL 1997 AT 102 DECLINING BY ONE POINT ANNUALLY UNTIL 1999 FEES UNDISCLOSED PAYABLE SEMIANNUALLY TATE & LYLE INTERNATIONAL FINANCE PLC UK PARENT 100 MILLION OF 8 EUROBONDS DUE OCT 12 1999 AT ISSUE PRICE 10138 VIA HOARE GOVETT SECURITIES LTD AND UBS LTD REOFFERED AT 9983 TO YIELD 802 A MARGIN OF 80 BASIS POINTS OVER COMPARABLE UK GILT GUARANTOR TATE & LYLE PLC FEES 1875 WESTLB EUROPE AG GERMANY 150 BILLION ITALIAN LIRE OF 85 EUROBONDS DUE MAY 11 1999 AT ISSUE PRICE 1015 VIA BANCA DI ROMA AND WESTDEUTSCHE LANDESBANK GIROZENTRALE BONDS YIELD 860 AFTER FEES OF 1875 9404080037 940408 TOYOTA LEXUS UNITS WILL BE REORGANIZED TO BOLSTER US SALES DETROIT TOYOTA MOTOR CORP SAID IT IS REORGANIZING ITS TOYOTA AND LEXUS SALES DIVISIONS IN THE US IN AN ATTEMPT TO CUT COSTS AND BOLSTER SALES IN THE FIERCELY COMPETITIVE US MARKET THE REORGANIZATION STRESSES GROUP DECISIONMAKING AND TEAMWORK CONCEPTS WIDELY USED BY AUTO COMPANIES IN JAPAN IN THE US HOWEVER TOYOTA IS THE FIRST JAPANESE AUTO MAKER TO DIVIDE ITS SALES AND MARKETING RESPONSIBILITIES INTO A TEAM FORMAT IRONICALLY IT IS FOLLOWING CHRYSLER CORP'S LEAD IN MAKING THE CHANGE TOYOTA SAID THE NEW SCHEME WILL ALLOW EACH SALES AND MARKETING EXECUTIVE TO FOCUS ON A LIMITED NUMBER OF MODELS RATHER THAN ON THE COMPANY'S ENTIRE MODEL LINE UNDER TOYOTA'S PREVIOUS STRUCTURE THE PERSON IN CHARGE OF MARKETING WOULD BE RESPONSIBLE FOR MARKETING EVERY VEHICLE WE SELL SAID SPOKESMAN JOE TETHEROW BY SEPARATING THE VEHICLES INTO TEAMS EVERYONE WILL HAVE BETTER FOCUS THE TOYOTA DIVISION WILL BE DIVIDED INTO THREE SALES TEAMS RESPONSIBLE FOR DISTRIBUTION MERCHANDISING ADVERTISING AND USEDVEHICLE SALES OF SPECIFIED MODELS ALL OF THE TEAMS WILL REPORT TO J DAVIS ILLINGWORTH GROUP VICE PRESIDENT OF THE TOYOTA DIVISION TOYOTA SAID THE REORGANIZATION DOESN'T INVOLVE ANY LAYOFFS OR STAFF CUTS ROBERT D WELDON JR WAS NAMED VICE PRESIDENT OF THE SALES AND PLANNING GROUP THAT WILL HANDLE TOYOTA'S LARGER CARS THE CAMRY AVALON AND PREVIA MR WELDON PREVIOUSLY WAS VICE PRESIDENT OF MARKETING ROBERT C MALING WAS NAMED VICE PRESIDENT OF THE GROUP OVERSEEING TOYOTA'S SMALL CARS AND SPORTS COUPES MR MALING HAD BEEN VICE PRESIDENT OF SALES ADMINISTRATION BRYAN BERGSTEINSSON ALSO A VICE PRESIDENT WILL DIRECT A TEAM CHARGED WITH TRUCKS AND SPORTUTILITY VEHICLES MR BERGSTEINSSON MOST RECENTLY SERVED AS VICE PRESIDENT OF CORPORATE PLANNING THE LEXUS DIVISION WILL ALSO BE DIVIDED INTO TEAMS ONE RESPONSIBLE FOR THE LS400 ONE FOR THE ES300 AND ONE FOR THE GS300 SC300 AND SC400 THE TEAM MANAGERS WILL ALL REPORT TO DAVID W DANZER CORPORATE MANAGER OF MARKETING AND CARLINE SALES MR DANZER AND THE TEAM MANAGERS WILL REPORT TO GEORGE BORST GROUP VICE PRESIDENT OF THE LEXUS DIVISION 9404080036 940408 BUSINESS BRIEF TANDY CORP STOCK FALLS 10 ON POOR SALES AND FIRSTQUARTER OUTLOOK TANDY CORP POSTED DISAPPOINTING MARCH SALES AND SAID ITS FIRSTQUARTER EARNINGS WOULD BE AT THE LOW END OF ANALYSTS' EXPECTATIONS THE COMPANY'S STOCK TUMBLED 10 ON THE NEWS THE FORT WORTH TEXAS ELECTRONICS AND COMPUTER RETAILER SAID TOTAL SALES ROSE 17 IN MARCH FROM A YEAR EARLIER BUT SALES AT STORES OPEN AT LEAST A YEAR WERE UP ONLY 1 THE SMALLEST SUCH RISE FOR TANDY IN A YEAR AT A MEETING OF SECURITIES ANALYSTS IN NEW YORK JOHN ROACH THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE BLAMED THE DISAPPOINTING SALES ON UNCERTAINTY AMONG CONSUMERS ABOUT THE LATEST GENERATION OF PERSONAL COMPUTERS AND DELAYS IN THE DELIVERY OF CERTAIN LAPTOP PRODUCTS MR ROACH ALSO TOLD THE ANALYSTS THAT TANDY EXPECTS TO POST FIRSTQUARTER EARNINGS BETWEEN 50 CENTS AND 60 CENTS A SHARE A YEAR EARLIER THE COMPANY EARNED 221 MILLION OR 26 CENTS A SHARE ON REVENUE OF 8814 MILLION 9404080035 940408 BUSINESS BRIEF WHIRLPOOL CORP APPLIANCE MAKER TO BUILD ITS NEW PLANT IN OKLAHOMA WHIRLPOOL CORP SAID IT DECIDED TO BUILD ITS PLANNED 100 MILLION COOKINGAPPLIANCE PLANT NEAR TULSA OKLA CONSTRUCTION OF THE 470000SQUAREFOOT FACILITY AT AN INDUSTRIAL PARK 12 MILES NORTH OF TULSA WILL BEGIN THIS SUMMER AND PRODUCTION WILL BEGIN IN MID1996 THE APPLIANCEMANUFACTURING CONCERN SAID WHIRLPOOL SAID THE PLANT AT FULL EMPLOYMENT IS EXPECTED TO HAVE ABOUT 1300 WORKERS IT WILL MAKE A NEW LINE OF FREESTANDING ELECTRIC AND GAS RANGES THAT WHIRLPOOL SAYS WILL BE EASIER TO USE AND CLEAN AND OFFER ADVANCED FEATURES THE BENTON HARBOR MICHBASED COMPANY CURRENTLY BUYS MOST OF ITS GAS RANGES FROM OTHER MANUFACTURERS ITS FREESTANDING ELECTRIC RANGES ARE CURRENTLY MANUFACTURED AT A PLANT IN FINDLAY OHIO PRODUCTION OF RANGES AT THE FINDLAY PLANT WILL BE PHASED OUT AS THE TULSA PLANT GOES ON LINE THE COMPANY SAID A SPOKESWOMAN SAID THE COMPANY HOPES THAT THROUGH ATTRITION AND THROUGH AN EXPECTED INCREASE IN PRODUCTION OF DISHWASHERS THE PLANT ALSO MAKES FEW OF THE ABOUT 450 WORKERS CURRENTLY INVOLVED IN RANGE PRODUCTION WILL LOSE THEIR JOBS TULSA HAD ACTIVELY WOOED WHIRLPOOL TO BUILD ITS PLANT THERE AND OKLAHOMA LEGISLATORS LATE LAST MONTH ENACTED LEGISLATION THAT PERMITS TULSA COUNTY TO SEEK VOTER APPROVAL OF A SALES TAX TO HELP FINANCE THE PURCHASE OF EQUIPMENT FOR A COMPANY THAT MOVES INTO THE REGION 9404080034 940408 WHO'S NEWS MOOIBROEK IS OUSTED AS CEO OF AMERICAN MEDICAL ELECTRONICS DALLAS AMERICAN MEDICAL ELECTRONICS INC SAID ITS BOARD REMOVED JOSEPH MOOIBROEK AS PRESIDENT AND CHIEF EXECUTIVE OFFICER THE MEDICAL DEVICE MAKER SAID CHAIRMAN ARTHUR W SCHWALM 61 YEARS OLD WOULD SERVE AS INTERIM CHIEF EXECUTIVE UNTIL A SUCCESSOR IS CHOSEN MR SCHWALM HAS BEEN AN AMERICAN MEDICAL DIRECTOR AND INVESTOR SINCE 1983 AND IS THE FOUNDER AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OF CARDIAC PACEMAKERS INC NOW A UNIT OF ELI LILLY & CO MR MOOIBROEK 51 COULDN'T BE REACHED FOR A COMMENT THE COMPANY SAID HE HADN'T BEEN ASKED TO RESIGN AS A DIRECTOR AND COULD REMAIN WITH THE COMPANY IN SOME ADVISORY CAPACITY THE MOVE COMES A WEEK AFTER THE BOARD'S FOUR OUTSIDE DIRECTORS ASKED MR MOOIBROEK TO RESIGN AS CHIEF EXECUTIVE IN A DISPUTE OVER THE PACE OF THE COMPANY'S GROWTH AND DIVERSIFICATION EFFORTS ON MARCH 29 MR MOOIBROEK THE ONLY INSIDE DIRECTOR REFUSED TO RESIGN AND INSTEAD ASKED THE FOUR OTHER DIRECTORS TO QUIT MR SCHWALM SAID THE COMPANY WHICH MAKES DEVICES DESIGNED TO STIMULATE THE HEALING OF BROKEN BONES WOULD LIKE TO EXPAND BROADLY INTO RELATED PRODUCT AREAS AND INCREASE INTERNATIONAL SALES HE SAID THE SEARCH FOR A NEW CHIEF EXECUTIVE WILL FOCUS ON CANDIDATES WITH DEMONSTRATED ABILITY TO GROW AND DIVERSIFY THE COMPANY TO THE 100 MILLION SALES LEVEL AND BEYOND THE COMPANY HAD 1993 NET INCOME OF 53 MILLION OR 74 CENTS A SHARE ON REVENUE OF 393 MILLION AMERICAN MEDICAL STOCK CLOSED AT 13563 A SHARE UP 625 CENTS A SHARE IN TRADING YESTERDAY ON THE NASDAQ STOCK MARKET 9404080030 940408 BUSINESS BRIEF LIBERTE INVESTORS FIRM EMERGES FROM SHIELD OF CHAPTER 11 FORMS UNIT LIBERTE INVESTORS EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS UNDER THE TERMS OF ITS REORGANIZATION PLAN THE REAL ESTATE INVESTMENT TRUST IN DALLAS SAID IT TRANSFERRED MOST OF ITS ASSETS TO A NEWLY FORMED UNIT RESURGENCE PROPERTIES INC THE COMPANY DISTRIBUTED THE COMMON STOCK OF RESURGENCE TO HOLDERS OF LIBERTE'S 105 SUBORDINATED NOTES DUE 1993 TO FULLY SATISFY OBLIGATIONS TO THOSE DEBTHOLDERS RESURGENCE ASSUMED LIBERTE'S 80 MILLION OF SENIOR SECURED DEBT WHICH HAD BEEN DUE SINCE MAY 1993 LIBERTE SAID LIBERTE RETAINED 38 MILLION OF ASSETS INCLUDING CASH SENIOR NOTES OF RESURGENCE AND EQUITY INTEREST IN REAL ESTATE LIBERTE FILED FOR BANKRUPTCYCOURT PROTECTION IN OCTOBER 1993 ITS REORGANIZATION PLAN RECEIVED COURT APPROVAL IN JANUARY 9404080029 940408 BUSINESS BRIEF ACCLAIM ENTERTAINMENT INC FISCAL 2NDPERIOD NET GREW FIRM TO BUY COMICS CONCERN ACCLAIM ENTERTAINMENT INC OYSTER BAY NY SAID NET INCOME FOR ITS FISCAL SECOND QUARTER ROSE 97 REFLECTING A STRONG CHRISTMAS SELLING SEASON AND INTERNATIONAL EXPANSION THE COMPANY ALSO SAID IT AGREED IN PRINCIPLE TO BUY VOYAGER COMMUNICATIONS INC PUBLISHERS OF VALIANT COMICS FOR 65 MILLION IN EITHER CASH STOCK OR BOTH THE VIDEOGAME MAKER SAID NET FOR THE QUARTER ENDED FEB 28 ROSE TO 106 MILLION OR 24 CENTS A SHARE FROM 54 MILLION OR 13 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 61 TO 1155 MILLION FROM 716 MILLION THE COMPANY ATTRIBUTED RESULTS TO THE STRENGTH OF ITS CATALOG TITLES AND NEW RELEASES IT ALSO SAID ESTABLISHED OPERATIONS IN SPAIN THROUGH A PACT WITH WALT DISNEY CO'S BUENA VISTA HOME VIDEO ACCLAIM PLANS TO USE COMICBOOK BUSINESS PROPERTIES FOR INTERACTIVE ENTERTAINMENT AND OTHER LICENSING ACTIVITIES IT ALSO AGREED WITH SEGA ENTERPRISES LTD TO DEVELOP GAMES FOR THE TOKYO VIDEOGAME COMPANY'S ARCADE MACHINES THE RECENTLY ANNOUNCED GENESIS SUPER 32X HOME MACHINE AND ANOTHER HOME PLAYER 9404080028 940408 BUSINESS BRIEF FOOD LION INC GROCERY STORE FIRM SAYS NET JUMPED 42 IN FIRST QUARTER FOOD LION INC POSTED A 42 JUMP IN FIRSTQUARTER EARNINGS ON A 9 INCREASE IN SALES THE SALISBURY NC GROCERY STORE CHAIN SAID NET INCOME ROSE TO 312 MILLION OR SIX CENTS A SHARE FROM 219 MILLION OR FIVE CENTS A SHARE A YEAR EARLIER SALES ROSE TO 180 BILLION FROM 166 BILLION SALES AT STORES OPEN AT LEAST A YEAR ROSE FOR THE SECOND CONSECUTIVE QUARTER CLIMBING BY 3 IN THE LATEST QUARTER COMPARED WITH 29 IN THE FOURTH QUARTER OF 1993 THE FIGURES REPRESENT A TURNAROUND FOR FOOD LION WHICH HAS BEEN HURT BY AN EXPANSION INTO TEXAS AND A DAMAGING ABC TELEVISION REPORT THAT WAS BROADCAST IN LATE 1992 IN JANUARY THE COMPANY ANNOUNCED PLANS TO CLOSE 88 UNPROFITABLE STORES DURING THE FIRST QUARTER OF 1994 FOOD LION OPENED SIX NEW STORES REPLACED TWO OLDER STORES RENOVATED NINE STORES AND CLOSED 54 DURING THE BALANCE OF THE YEAR THE COMPANY PLANS TO OPEN 30 TO 40 NEW STORES COMPLETE 40 TO 50 STORE RENOVATIONS AND CLOSE AN ADDITIONAL 34 STORES 9404080027 940408 BUSINESS BRIEF MERRYGOROUND ENTERPRISES INC REORGANIZATION COSTS LED TO FISCAL 4THQUARTER LOSS MERRYGOROUND ENTERPRISES INC REPORTED A NET LOSS FOR THE FISCAL FOURTH QUARTER LARGELY TO DUE TO COSTS ASSOCIATED WITH ITS CHAPTER 11 REORGANIZATION FOR THE QUARTER ENDED JAN 29 THE JOPPA MD SPECIALTY RETAILER REPORTED A NET LOSS OF 66 MILLION OR 12 CENTS A SHARE COMPARED WITH NET INCOME OF 14 MILLION OR 26 CENTS A SHARE A YEAR EARLIER THE RECENT QUARTER INCLUDED A 69 MILLION CHARGE FOR REORGANIZATION EXPENSES THE RETAILER FILED FOR PROTECTION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE IN EARLY JANUARY REVENUE INCREASED 32 TO 3041 MILLION FROM 2947 MILLION THE RETAILER ADDED THAT SALES FOR THE FIVE WEEKS ENDED APRIL 2 FELL 3 TO 67 MILLION FROM 69 MILLION A YEAR EARLIER SALES AT STORES OPEN MORE THAN ONE YEAR A KEY MEASURE OF A RETAILER'S HEALTH DROPPED 22 COMPARED WITH THE SAME PERIOD LAST YEAR THE COMPANY HAS 1419 STORES IN 44 STATES IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING MERRYGOROUND FELL 125 CENTS TO 275 9404080026 940408 TECHNOLOGY US SURGICAL RECEIVES FDA WARNING LETTER FOR STAPLER PRODUCT A WALL STREET JOURNAL NEWS ROUNDUP THE FOOD AND DRUG ADMINISTRATION HAS ISSUED A WARNING LETTER CITING US SURGICAL CORP FOR FAILING TO REPORT 15 CASES IN WHICH ONE OF ITS PRODUCTS MALFUNCTIONED DURING SURGERY THE INCIDENTS INVOLVED A SURGICAL STAPLER KNOWN AS ENDO GIA USED IN MINIMALLY INVASIVE SURGICAL PROCEDURES IN THREE CASES ACCORDING TO THE LETTER THE MALFUNCTION MAY HAVE LED TO INJURY TO PATIENTS INCLUDING ONE WHO NEEDED A SECOND OPERATION TO STOP INTERNAL BLEEDING US SURGICAL NORWALK CONN SAID IT DOESN'T BELIEVE ANY OF THE INCIDENTS WARRANTED REPORTING UNDER FDA REGULATIONS AND THAT IT IS IN DISCUSSIONS WITH THE AGENCY TO CLARIFY REPORTING REQUIREMENTS MARIANNE SCIPIONE VICE PRESIDENT FOR CORPORATE COMMUNICATIONS SAID THE COMPANY BELIEVES THE INCIDENTS OCCURRED BECAUSE OPERATING ROOM PERSONNEL DIDN'T LOAD STAPLE CARTRIDGES PROPERLY ONTO THE DEVICE THEY'RE NOT CONTACTING US BECAUSE WE HAVE PRODUCT DEFECTS MS SCIPIONE SAID BUT BECAUSE IN THEIR OPINION WE DIDN'T FILE THESE REPORTS AS REQUIRED SHE SAID THE WARNING LETTER DATED MARCH 16 IS THE FIRST THE COMPANY HAS RECEIVED SHE ALSO SAID THE FDA HAS ISSUED 50 SIMILAR WARNING LETTERS TO OTHER MAJOR MEDICAL DEVICE MAKERS IN THE PAST YEAR THE COMPANY HAS SOLD MORE THAN ONE MILLION ENDO GIA INSTRUMENTS SINCE THE DEVICE WAS INTRODUCED IN 1991 SHE ADDED AN FDA SPOKESMAN SAID THAT WARNING LETTERS ARE NOT UNCOMMON AND GO OUT SEVERAL TIMES A YEAR TO DIFFERENT COMPANIES ON VARIOUS PROBLEMS 9404080025 940408 BUSINESS BRIEF ELECTROSOURCE INC COMPANY TO BUY OUT STAKE FROM JOINTVENTURE PARTNER ELECTROSOURCE INC SAID IT WILL BUY OUT ITS PARTNER IN ITS HALFOWNED HORIZON BATTERY TECHNOLOGIES INC JOINT VENTURE THE AUSTIN TEXAS BATTERY DEVELOPER SAID IT WILL MERGE WITH HORIZON IT WILL EXCHANGE COMMON STOCK VALUED AT APPROXIMATELY 10 MILLION FOR BDM TECHNOLOGIES INC'S HALFINTEREST IN THE JOINT VENTURE GIVING BDM A 12 TO 15 STAKE IN THE COMBINED COMPANY SINCE LAST YEAR BDM TECHNOLOGIES HAS FUNDED DEVELOPMENT OF THE HORIZON MANUFACTURING FACILITY IN SAN MARCOS TEXAS WHERE ELECTROSOURCE'S TECHNOLOGY IS BEING USED TO PRODUCE LEADACID BATTERIES BDM TECHNOLOGIES IS A UNIT OF TECHNOLOGICALSERVICES COMPANY BDM INTERNATIONAL INC OF MCLEAN VA ELECTROSOURCE SAID BDM WON'T FUND THE JOINT VENTURE AFTER JUNE 30 AND THAT THE COMPANY IS SEEKING THIRDPARTY FUNDING TO PRODUCE AND DEVELOP THE HORIZON BATTERY 9404080024 940408 HASBRO AGREES TO BUY PUZZLE GAME LINES IN 105 MILLION PACT PAWTUCKET RI HASBRO INC CONTINUING ON A QUEST TO BROADEN ITS LINES OF TOY OFFERINGS AGREED TO ACQUIRE THE GAMES AND PUZZLES BUSINESSES OF WESTERN PUBLISHING GROUP INC FOR 105 MILLION THE ACQUISITION FURTHER DIVERSIFIES HASBRO'S LINES OF GAMES AND PUZZLES WHICH LAST YEAR DID APPROXIMATELY 475 MILLION IN SALES ACCORDING TO LAURIE LIVELY SMITH ANALYST FOR SEIDLER INC BUT IT ALSO BRINGS INTO THE HASBRO FOLD AT LEAST TWO WELL KNOWN ADULT GAMES PICTIONARY AND BALDERDASH ALONG WITH BOASTING RIGHTS TO THE LARGEST LINE OF PUZZLES IN THE US IN THE FISCAL YEAR ENDED JAN 29 1994 WESTERN PUBLISHING'S PUZZLES AND GAMES BUSINESSES HAD SALES OF ABOUT 130 MILLION AND ESTIMATED PRETAX OPERATING LOSSES OF 20 MILLION MS LIVELY SAID WESTERN PUBLISHING HAS ADMITTED THAT IT DIDN'T UNDERSTAND THE BUSINESS OF GAMES AND PUZZLES BUT THAT HASBRO WILL PROVE TO BE A MUCH MORE CAPABLE MANAGER EARLIER THIS YEAR WESTERN PUBLISHING HAD INDICATED A WILLINGNESS TO BE ACQUIRED OUTRIGHT IN FACT SPECULATION ABOUT A POSSIBLE MERGER AGREEMENT IN NOVEMBER SENT WESTERN PUBLISHING SHARES SOARING 550 TO 18 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY WESTERN FINISHED UP 375 CENTS AT 1425 MERGER TALKS WITH SEVERAL COMPANIES CONTINUED INTO 1994 BUT WESTERN SAID IT HAD OPTED TO SELL ONLY A PORTION OF THE CONCERN ON THE ADVICE OF ITS INVESTMENT ADVISERS WESTERN SAID IT HAS CEASED MERGER DISCUSSIONS AND NOW PLANS TO FOCUS ON ITS CORE PUBLISHING AND PRINTING BUSINESSES 9404080023 940408 BUSINESS BRIEF MERCANTILE STORES CO FISCAL FIRSTQUARTER CHARGE SET FOR MERGER OF TWO UNITS MERCANTILE STORES CO SAID IT WILL TAKE A ONETIME CHARGE OF ABOUT 3 MILLION IN THE FISCAL FIRST QUARTER FOR COSTS RELATED TO THE MERGER OF TWO DIVISIONS THE FAIRFIELD OHIO DEPARTMENT STORE OPERATOR SAID THE CHARGE COMES FROM COMBINING ITS JOSLIN'S AND JONES STORE CO DIVISIONS MERCANTILE POSTED NET INCOME OF 145 MILLION OR 40 CENTS A SHARE FOR THE YEARAGO FIRST QUARTER ENDED MAY 1 MERCANTILE WHICH OPERATES 101 DEPARTMENT STORES REPORTED SALES OF 273 BILLION FOR THE YEAR ENDED JAN 31 THE COMPANY EXPECTS 3 MILLION IN ANNUAL SAVINGS FROM THE MERGER AFTER THE FIRST YEAR THE NEW DIVISION WILL ENCOMPASS 24 STORES GREGORY A BRANDJORD 46 YEARS OLD AND PRESIDENT OF JONES STORE WAS NAMED PRESIDENT OF THE MERGED UNIT ROGER D DERR 58 PRESIDENT OF JOSLIN'S SAID HE WILL RETIRE DUE TO HEALTH REASONS 9404080022 940408 BUSINESS BRIEF SAGE TECHNOLOGIES INC COMPANY'S SHARES JUMP 18 ON NEWS OF RISE IN REVENUE SHARES OF SAGE TECHNOLOGIES INC JUMPED 18 AFTER THE SUPPLIER OF COMPUTER PRODUCTS AND SERVICES SAID IT EXPECTS TO REPORT REVENUE OF 115 MILLION TO 120 MILLION IN ITS FIRST QUARTER THE STAMFORD CONNBASED COMPANY WHICH REPORTED REVENUE OF 78 MILLION IN THE 1993 FIRST QUARTER HAS GROWN ALMOST ENTIRELY THROUGH ACQUISITIONS SINCE THEN SAGE SAID IT COMPLETED THE PURCHASE OF CLOSELY HELD CBM INC A LEXINGTON KYBASED SUPPLIER OF COMPUTER PRODUCTS AND SERVICES IN THE MIDWEST AND SOUTHEAST THE AMOUNT WASN'T DISCLOSED CBM HAS ANNUAL SALES OF ABOUT 100 MILLION SAGE ALSO SAID IT EXPECTS REVENUE OF MORE THAN 200 MILLION IN THE SECOND QUARTER UP FROM 325 MILLION A YEAR AGO SAGE SHARES CLOSED AT 13875 UP 2125 IN NASDAQ STOCK MARKET TRADING 9404080021 940408 BUSINESS BRIEF SCORE BOARD INC FISCAL 4THPERIOD NET ROSE OPERATING LOSS IS EXPECTED SCORE BOARD INC REPORTED A 20 JUMP IN FISCAL FOURTHQUARTER NET INCOME BUT SAID IT EXPECTS AN OPERATING LOSS IN THE CURRENT FIRST QUARTER FOR THE FOURTHQUARTER ENDED JAN 31 THE COMPANY REPORTED NET INCOME OF 36 MILLION OR 31 CENTS A SHARE COMPARED WITH 3 MILLION OR 28 CENTS A SHARE REVENUE INCREASED 26 TO 314 MILLION FROM 306 MILLION IN THE YEAREARLIER PERIOD THE TRADING CARD AND MEMORABILIA COMPANY ALSO ANNOUNCED THAT IT PLANS TO CONSOLIDATE OPERATIONS NOW IN GEORGIA AND NEW JERSEY INTO ITS CHERRY HILL NJ OFFICE SCORE BOARD SAID THAT IN ADDITION TO THE EXPECTED OPERATING LOSS IT WOULD RECORD A CHARGE OF 39 MILLION OR 33 CENTS A SHARE TO COVER THE MOVE AND TO ADDRESS OTHER ASPECTS OF CONSOLIDATION SCORE BOARD SAID ITS INVENTORY LEVELS ROSE 19 DURING FISCAL 1994 TO 349 MILLION DUE TO GROWTH IN REVENUE AND INCREASING BREADTH OF ITS PRODUCT LINES IN TRADING YESTERDAY ON THE NASDAQ STOCK MARKET SCORE BOARD STOCK FELL 75 CENTS OR 77 TO 9 A SHARE 9404080020 940408 CLINTON SUGGESTS PRICE RISE TO COVER HEALTHCARE COSTS PRESIDENT CLINTON SUGGESTED LAST NIGHT THAT FOODSERVICE BUSINESSES RAISE PRICES TO MEET THE COST OF PROVIDING HEALTH BENEFITS FOR THEIR EMPLOYEES UNDER HIS HEALTHCAREREFORM PROPOSAL SPEAKING AT A TOWN MEETING IN KANSAS CITY KAN MR CLINTON MADE THE RECOMMENDATION AFTER HERMAN CAIN CHIEF EXECUTIVE OFFICER OF GODFATHER'S PIZZA SAID HE WOULD BE FORCED TO LAY OFF EMPLOYEES TO PAY FOR BENEFITS THAT WOULD BE MANDATED BY THE PRESIDENT'S PLAN THE COMPANY HAS 10000 EMLOYEES ONETHIRD ARE NOW INSURED AND TWOTHIRDS ARE PARTTIME OR TEMPORARY WORKERS MR CAIN ASKED WHAT HE SHOULD TELL ANY EMPLOYEES HE IS FORCED TO FIRE IN RESPONDING THE PRESIDENT NOTED THAT A SIGNIFICANT 40 OF THE US FOOD DOLLAR IS SPENT EATING OUT HE ARGUED THAT MR CAIN'S COSTS WOULD BE LESS THAN THE BUSINESSMAN ESTIMATED AND THAT HIS COMPETITORS WOULD FACE THE SAME SITUATION WHY WOULDN'T YOU ALL BE ABLE TO RAISE THE PRICE OF PIZZA 2 MR CLINTON ASKED I'M A SATISFIED CUSTOMER I'D KEEP BUYING FROM YOU WHITE HOUSE AIDES SAID THAT MR CAIN IS A FREQUENT CRITIC OF THE PRESIDENT'S HEALTHCARE PLAN 9404080019 940408 ECONOMY BIG RETAILERS REPORT A SURGE IN MARCH SALES EARLY EASTER FINE WEATHER ADD TO SURPRISE GAINS TURNAROUND FOR APPAREL BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S LARGEST RETAILERS REPORTED SURPRISINGLY STRONG SALES GAINS IN MARCH AS AN EARLY EASTER AND WARMER WEATHER INSPIRED SHOPPERS TO LOAD UP ON SPRING GOODS BUT EVEN AFTER ACCOUNTING FOR THE HOLIDAY AND THE SUNSHINE ANALYSTS WERE STARTLED AT THE HEARTY ACROSSTHEBOARD SALES INCREASES ESPECIALLY FOR APPAREL WHERE SALES HAD BEEN CHRONICALLY WEAK THERE'S AN UNDERLYING STRENGTH IN CONSUMER DEMAND SAID ANALYST JANET MANGANO OF BURNHAM SECURITIES MARCH SALES FOR STORES OPENED AT LEAST A YEAR SOARED 11 FROM A YEAR EARLIER ACCORDING TO INDEXES OF SEVERAL RETAILERS COMPILED BY SALOMON BROTHERS INC AND ALEX BROWN & SONS IT'S A PLEASANT SURPRISE SAID ROBERT BUCHANAN OF ALEX BROWN WHO EXPECTED A GAIN OF ABOUT 8 OF COURSE RETAILERS HAD AN EASIER TIME POSTING GLOWING NUMBERS COMPARED WITH YEARAGO SALES FIGURES THAT WERE ROCKED BY MARCH 1993 SNOWSTORMS IN THE EAST BUT SHOPPERS' RENEWED ENTHUSIASM FOR SPRING FASHION IS YET ANOTHER ENCOURAGING SIGN THAT CONSUMER CONFIDENCE IS ON THE RISE EARLIER THIS WEEK CAR AND TRUCK MAKERS ALSO REPORTED ROBUST SALES THOUGH THEY EXPECT THE MOMENTUM TO CONTINUE AT LEAST THROUGH THE FIRST HALF OF THE YEAR ANALYSTS CAUTIONED THAT APRIL SALES WILL LIKELY BE MORE TEPID BECAUSE EASTER THE THIRDLARGEST SELLING PERIOD BEHIND CHRISTMAS AND BACKTOSCHOOL FELL A WEEK EARLIER THIS YEAR STEALING SALES FOR MARCH IT'S NOT POSSIBLE TO INFER FROM THE LATEST SALES RESULTS ALONE THAT CONSUMERS ARE FINALLY UNZIPPING THEIR POCKETBOOKS SAID KURT BARNARD A NEW YORK RETAIL CONSULTANT MR BUCHANAN SAID THIS IS THE FIRST TIME RETAILERS HAVE HAD REAL STRONG APPAREL SALES SINCE THE FIRST HALF OF 1987 CONSUMERS ARE USING THEIR CREDIT CARDS AND FISTFULS OF CASH TO TELL THE FASHION WORLD THAT THEY'RE ON THE RIGHT TRACK WITH SHORTER SKIRTS AND OTHER FRESH STYLES SAID NEW YORK FASHION CONSULTANT ALAN MILLSTEIN GAP INC'S SAMESTORE SALES JUMPED 16 REALLY KNOCKING THE COVER OFF THE BALL SAID MR BUCHANAN SAMESTORE SALES AT TALBOTS INC SOARED 26 AND ROSE 14 AT ANNTAYLOR STORES CORP EVEN LIMITED INC WHOSE RESULTS HAVE LANGUISHED POSTED A 7 SAMESTORE SALES RISE THAT'S REALLY A MIRACLE FOR THEM SAID MR MILLSTEIN FEDERATED DEPARTMENT STORES INC SAW A RETURNING STRENGTH IN VIRTUALLY ALL MAJOR CATEGORIES OF OUR READYTOWEAR BUSINESS SAID ALLEN QUESTROM CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE CINCINNATI RETAILER POSTED ONLY A 31 SAMESTORE SALES GAIN BUT IT WAS BETTER THAN WALL STREET EXPECTED PARTICULARLY BECAUSE FEDERATED MOVED KEY PROMOTIONS OUT OF MARCH AND INTO APRIL MAY DEPARTMENT STORES INC JC PENNEY CO AND SEARS ROEBUCK & CO CONTINUED THEIR HOT STREAKS WITH SAMESTORE SALES GAINS OF 15 14 AND 17 RESPECTIVELY SALES IN VIRTUALLY ALL MERCHANDISE CATEGORIES MOVED AHEAD STRONGLY SAID ARTHUR MARTINEZ CHAIRMAN AND CHIEF EXECUTIVE OF SEARS' MERCHANDISE GROUP SINGLING OUT DRESSES AND LAWNANDGARDEN TOOLS SEARS ECLIPSED KMART CORP LAST MONTH AS THE NATION'S SECONDLARGEST RETAILER FOR THE FIRST TIME SINCE LOSING THE SPOT THREE YEARS AGO WALMART STORES INC IS THE LARGEST RETAILER KMART'S DISCOUNT STORES POSTED A 33 SAMESTORE SALES GAIN CONSUMERS ARE STILL ENAMORED WITH BUYING GOODS FOR THE HOME WHERE THEY'RE SPENDING MORE AND MORE TIME SAMESTORE SALES ROSE 45 AT BEST BUY CO WHICH SELLS ELECTRONICS AND APPLIANCES AND 11 AT HECHINGER CO A HOMEIMPROVEMENT RETAILER DISCOUNTERS POSTED STARTLING SALES GAINS INDICATING THAT CONSUMERS HOWEVER CONFIDENT ARE AS VALUECONSCIOUS AS EVER ANALYSTS SAID SAMESTORE SALES CLIMBED 15 AT WALMART 13 AT CALDOR CORP AND 12 AT DAYTON HUDSON CORP'S TARGET STORES UNIT THERE IS A CONTINUING CONSUMER INTEREST IN VALUEPRICED MERCHANDISE SAID HENRY T DENERO DAYTON HUDSON'S VICE CHAIRMAN IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY WALMART SHARES ROSE 75 CENTS TO 26625 DAYTON HUDSON 1625 TO 7875 AND GAP 225 OR 48 TO 49 9404080018 940408 PIRELLI SAYS IT'S POISED FOR A RECOVERY FOLLOWING PAINFUL RESTRUCTURING MOVES BY MAUREEN KLINE SPECIAL TO THE WALL STREET JOURNAL MILAN AFTER TWO LONG YEARS OF PAYING THE COSTS OF A FAILED ACQUISITION ITALIAN TIRE AND CABLE MAKER PIRELLI SPA SAYS IT'S ON THE VERGE OF RECOVERY DESPITE ROCKBOTTOM GLOBAL DEMAND FOR ITS PRODUCTS AFTER A DISASTROUS ATTEMPT TO TAKE OVER GERMAN COMPETITOR CONTINENTAL AG PIRELLI SOLD ITS NONCORE BUSINESSES TO FOCUS ON TIRES AND CABLESONLY TO FIND THE TWO SECTORS VICTIMS OF WORLDWIDE DEMAND SLUMPS AND DEMAND DOESN'T APPEAR LIKELY TO RISE ANY TIME SOON PIRELLI'S TIRE BUSINESS IS AT THE MERCY OF THE AUTOMOBILE MARKET WHILE THE LONGTERM FUTURE OF ITS CABLE BUSINESS WILL DEPEND ON THE TECHNOLOGY RACE IN THE TELECOMMUNICATIONS SECTOR STILL PIRELLI'S CHIEF EXECUTIVE OFFICER MARCO TRONCHETTI PROVERA PREDICTS THAT THE COMPANY WILL SHOW A PROFIT THIS YEAR IF YOU LOOK AT FINANCIAL FIGURES PRODUCT INNOVATION AND PROFITABILITY YOU SEE THAT THE CHANGE HAS BEEN DRAMATIC HE SAID INDEED ANALYSTS HAIL PIRELLI AS AN EXAMPLE OF A TIMELY TURNAROUND SAYING THAT AFTER SUCCESSFULLY PRUNING JOBS AND PRODUCT LINES THE COMPANY HAS SLASHED COSTS AND IS READY TO TAKE ADVANTAGE OF EVEN A MEAGER UPTURN IN DEMAND PIRELLI'S STOCK PRICE HAS RISEN ABOUT 175 SINCE DECEMBER 1992 IN RESPONSE TO MR TRONCHETTI'S RESTRUCTURING EFFORTS AS WELL AS TO PIRELLI'S LONGTERM POTENTIAL ANALYSTS SAY MOREOVER MANY OF THEM SAY THE SHARES MAY RISE FURTHER PIRELLI CLOSED YESTERDAY AT 2765 LIRE 169 UP SIX LIRE IN TRADING ON THE MILAN STOCK EXCHANGE DESPITE CONTINUING LOW DEMAND PIRELLI WILL ARM ITSELF WITH ONE TRILLION LIRE IN FRESH CAPITAL LAUNCHING A THREEYEAR PLAN THAT INCLUDES 14 TRILLION LIRE IN CAPITAL EXPENDITURES AND 800 BILLION LIRE IN RESEARCH AND DEVELOPMENT SPENDING AND IT HOPES STEP UP TIRE AND CABLE SALES AND WHILE THERE HAS BEEN NO FURTHER TALK OF BIG ACQUISITIONS PIRELLI DOES PLAN A STEPBYSTEP EXPANSION IT WILL INTRODUCE NEW PRODUCTS EXPAND IN NEW MARKETS AND CONTINUE TECHNOLOGICAL DEVELOPMENTS MR TRONCHETTI SAID PIRELLI WILL REPORT A 1993 OPERATING PROFIT OF SOME TENS OF BILLIONS OF LIRE MR TRONCHETTI SAID AND HE PREDICTS A NET PROFIT FOR 1994 SINCE THE COMPANY WILL BE FREE OF RESTRUCTURING COSTS THAT WOULD BE A SIGNIFICANT IMPROVEMENT FROM 1991 WHEN THE BID FOR CONTINENTAL WAS FINALLY DROPPED PIRELLI REPORTED A GROUP LOSS OF 673 BILLION LIRE FOR 1991 ABOUT HALF OF WHICH WAS ATTRIBUTED TO ITS 15MONTH BATTLE FOR CONTINENTAL IN 1992 PIRELLI NARROWED ITS LOSS SIGNIFICANTLY TO 154 BILLION LIRE ALTHOUGH IT HAD TO GRAPPLE WITH BOTH RESTRUCTURING COSTS AND PLUMMETING TIRE DEMAND IN THE SECOND HALF OF THE YEAR DEMAND FOR TIRES HAS BEEN IN THE DOLDRUMS EVER SINCE MR TRONCHETTI WON'T PREDICT WHEN THE TIRE MARKET WILL SEE BETTER DAYS BUT ANALYSTS SAY DEMAND FOR REPLACEMENT TIRES PIRELLI'S STRONG SUIT WILL PICK UP WHEN CONSUMER CONFIDENCE DOES THE PROBLEMS IN THE CABLE BUSINESS STEM MAINLY FROM THE NEED TO PHASE OUT COPPER CABLES AS NEW TECHNOLOGIES REPLACE THEM AND BY SLACK DEMAND FROM ENERGY AND TELECOMMUNICATIONS COMPANIES DURING ITS TWO YEARS OF RESTRUCTURING PIRELLI CLOSED 22 FACTORIES CUT ITS WORK FORCE TO 40000 FROM 50000 SOLD NONCORE ASSETS REORDERED ITS FINANCES AND GOT A NEW MANAGEMENT TEAM AT THE SAME TIME IT HAS SLASHED NET DEBT TO 21 TRILLION LIRE FROM 37 TRILLION LIRE CUTTING INTEREST PAYMENTS 27 IN 1993 ALONE SALES PER EMPLOYEE HAVE INCREASED TO 220 MILLION LIRE FROM 168 MILLION LIRE PIRELLI HAS PROBABLY BEEN THE MOST EFFECTIVE OF THE TIRE COMPANIES IN PURSUING RESTRUCTURING ACCORDING TO GIAMPAOLO TRASI MARKET STRATEGIST AT MILAN BROKERAGE FIRM SIGECO 9404080017 940408 HECHINGER SALES INCREASE 26 LANDOVER MD HOMEIMPROVEMENTSTORE OPERATOR HECHINGER CO SAID MARCH SALES ROSE 26 TO 2142 MILLION FROM 1701 MILLION WHILE SALES AT STORES OPEN MORE THAN A YEAR ROSE 11 THE HOME QUARTERS WAREHOUSE UNIT HAD A 55 SALES GAIN INCLUDING 15 FOR SAMESTORE SALES TWO HOME QUARTERS UNITS OPENED IN MARCH ANOTHER OPENS IN LITTLE ROCK ARK NEXT WEEK AND A TOTAL OF 11 NEW HOME QUARTER STORES ARE PLANNED FOR THE FISCAL YEAR ENDING NEXT JANUARY 9404080016 940408 SOLO SERVE HAS SALES GAIN SAN ANTONIO SOLO SERVE CORP SAID SALES AT ITS STORES OPEN AT LEAST A YEAR ROSE 37 IN THE FIVE WEEKS ENDED SATURDAY COMPARED WITH A YEAR EARLIER THE DISCOUNT RETAILER SAID ITS TOTAL SALES IN THE PERIOD WERE 172 MILLION UP 12 FROM 153 MILLION 9404080015 940408 FOREIGN EXCHANGE DOLLAR GAINS AGAINST THE YEN HELPED BY NEWS OF NORTH KOREA'S NUCLEAR STATUS BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR MOVED HIGHER AGAINST THE YEN YESTERDAY ON ALARMING REPORTS ABOUT NORTH KOREA'S NUCLEAR CAPABILITY AND ON SURPRISINGLY CONCILIATORY COMMENTS TOWARD JAPAN BY AN OFTEN ASCERBIC US TRADE OFFICIAL REPORTS THAT NORTH KOREA IS POISED FOR A LEAP FORWARD IN ITS NUCLEARWEAPONS PROGRAM SPURRED SUFFICIENT UNCERTAINTY TO PUSH THE DOLLAR FROM INTRADAY LOWS AROUND 10405 YEN TO AN INTRADAY HIGH OF 10510 YEN BUT AT THAT LEVEL IT RAN INTO A SOLID WALL OF SELLING BY JAPANESE EXPORT INDUSTRIES US OFFICIALS SAID THEY WERE PARTICULARLY CONCERNED THAT SPENT FUEL RODS FROM NORTH KOREAN REACTORS WOULD BE USED TOWARD PROCESSING NUCLEARWEAPONS GRADE PLUTONIUM TRADERS SAID THE DOLLAR MIGHT HAVE MOVED LOWER EXCEPT FOR REMARKS BY US TRADE REPRESENTATIVE MICKEY KANTOR WHO AGAINST ALL EXPECTATIONS MADE SOME POSITIVE COMMENTS ABOUT USJAPAN RELATIONS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 10490 YEN UP FROM 10455 YEN LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 17165 MARKS UNCHANGED FROM WEDNESDAY STERLING WAS TRADING AT 14740 UP FROM 14680 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10508 YEN AND AT 17128 MARKS MR KANTOR SAID HE WAS VERY PLEASED BY JAPAN'S SUPPORT OF A US DEMAND FOR A WORKERS' RIGHTS INITIATIVE LINKED TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR GATT HE NOTED THAT THE US AND JAPANESE GOVERNMENTS HAVE WORKED TOGETHER VERY WELL ON THIS ISSUE THE COMMENT RAISED HOPES THAT USJAPAN TRADE RELATIONS WOULD IMPROVE THUS RELIEVING US PRESSURE FOR A STRONG YEN TO SLASH THE SIZE OF JAPAN'S TRADE SURPLUS SAID STEPHEN FLANAGAN VICE PRESIDENT AT PAINEWEBBER INC THE MARKET ISN'T USED TO MR KANTOR USING THE WORDS JAPAN' AND PLEASED' IN THE SAME SENTENCE MR FLANAGAN SAID AN ADDITIONAL COMMENT BY MR KANTOR THAT DOLLARYEN MOVEMENTS SHOULDN'T BE SEEN AS LINKED TO US INITIATIVES TO OPEN JAPANESE DOMESTIC MARKETS ALSO WAS DOLLARSUPPORTIVE TRADERS SAID MEANWHILE A FLURRY OF RUMORS SURROUNDING THE APPEARANCE EARLIER YESTERDAY OF ALAN GREENSPAN FEDERAL RESERVE CHAIRMAN BEFORE BUSINESS LEADERS IN SAN FRANCISCO SPARKED HECTIC DOLLARBUYING PARTICULARLY AGAINST THE MARK BUT THOSE GAINS WERE HANDED BACK WHEN MR GREENSPAN'S ACTUAL ADDRESS PROVED SOMEWHAT TEPID THERE WERE RUMORS THAT MR GREENSPAN WAS GOING TO ANNOUNCE A 150BASIS POINT BOOST IN INTEREST RATES SAID JACK GRIFFIN VICE PRESIDENT AT FUJI BANK LTD IN NEW YORK SOME TRADERS SUGGESTED THE RUMORS WERE BEING SPREAD BY CHICAGO OPTIONS TRADERS IN AN ATTEMPT TO DRIVE THE DOLLARMARK AND DOLLARYEN TOWARD AN APPEALING STRIKE PRICE NOBODY WHO WAS INTELLIGENT WOULD HAVE TRADED OFF THAT SITUATION MR GRIFFIN SAID BUT HE ADDED THAT THE RUMORS WERE NEVERTHELESS DOLLARSUPPORTIVE WHEN MR GREENSPAN'S REMARKS EVENTUALLY WERE DISSEMINATED THEY PROVED TO PROVIDE THE ANTICLIMAX MOST TRADERS HAD EXPECTED ALL ALONG MR GREENSPAN EXPRESSED HIS HOPES THAT CURRENT ECONOMIC FEARS WOULD FADE AND BE SUPPLANTED BY A SENSE OF OPTIMISM AS THE EARLIER RUMORS EVAPORATED THE DOLLAR CAME OFF ITS HIGHS AGAINST THE MARK BUT MR GREENSPAN'S COMMENTS NEVERTHELESS LENT SOME SUPPORT TO THE DOLLAR TRADERS SAID MR GREENSPAN'S SENTIMENTS WERE TOO FAMILIAR TO BE SIGNIFICANTLY MARKETMOVING BUT THEY MAY HAVE STABILIZED THE DOLLAR AT AROUND THE RANGES ESTABLISHED DURING THE PAST TWO DAYS ELSEWHERE STERLING DREW STRENGTH FROM A CONTINUING MARKET CORRECTION THAT FOLLOWED WEEKS OF HEAVY SELLOFFS SPURRED BY CONCERNS ABOUT BRITISH PRIME MINISTER JOHN MAJOR'S POLITICAL FUTURE THE POUND ESPECIALLY FOUND SUPPORT YESTERDAY ON VERY BULLISH UK INDUSTRIAL PRODUCTION DATA THAT FAR EXCEEDED MARKET EXPECTATIONS 9404080014 940408 POLITICS & POLICY UNEXPECTED OBSTACLES ARE THREATENING TO DELAY OR DERAIL CONGRESSIONAL APPROVAL OF GATT PACT BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WORLDTRADE PACT THAT WAS EXPECTED TO SAIL EASILY THROUGH CONGRESS THIS SPRING IS NOW FIGHTING STRONG HEAD WINDS AND IS IN DANGER OF CAPSIZING THE UNEXPECTED SQUALL COMES AT AN EMBARRASSING TIME FOR THE WHITE HOUSE TRADE MINISTERS FROM AROUND THE WORLD WILL JET TO MARRAKESH MOROCCO TO SIGN THE PACT NEXT FRIDAY WHICH WAS NEGOTIATED UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE US TRADE REPRESENTATIVE MICKEY KANTOR WANTS THE MEETING TO FOCUS ON ENVIRONMENTAL AND LABOR ISSUES BUT HE IS BOUND TO BE PUT ON THE DEFENSIVE BY DELEGATES QUESTIONING WHEN OR WHETHER CONGRESS WILL APPROVE THE PACT WHICH CUTS TARIFFS AND AGRICULTURAL SUBSIDIES AND STRENGTHENS PATENT PROTECTION GLOBALLY THE LONGER THE GATT PACT SLIPS THE GREATER THE RISK THAT SOMETHING WILL UNDO IT SAYS ROBERT HORMATS A FORMER TRADE NEGOTIATOR WHO IS NOW VICE CHAIRMAN OF GOLDMAN SACHS & CO THAT'S AN UNHEALTHY SIGNAL ESPECIALLY WHEN THERE ARE SO MANY UNCERTAINTIES IN THE INTERNATIONAL TRADING ENVIRONMENT THE ADMINISTRATION'S GATT PROBLEMS EASED SLIGHTLY YESTERDAY WHEN GATT DELEGATES AGREED TO A US PROPOSAL TO DISCUSS INTERNATIONAL LABOR STANDARDS AT MARRAKESH A MINIMUM GOAL OF UNIONS THAT FOUGHT THE NORTH AMERICAN FREE TRADE AGREEMENT MR KANTOR CALLED THE AGREEMENT A MODESTLY DRAMATIC STEP BUT THE WHITE HOUSE'S BIGGEST GATT HEADACHE REMAINS FIGURING OUT HOW TO PAY THE BILL FOR LOST TARIFF REVENUE NOW ESTIMATED AT ABOUT 13 BILLION OVER FIVE YEARS DEMOCRATIC LAWMAKERS SAY THEY WON'T TAKE THE RAP FOR GATT TAX INCREASES OR PROGRAM CUTS WITHOUT REPUBLICAN SUPPORT BUT SENATE REPUBLICANS SAY THEY WON'T HELP THE WHITE HOUSE UNTIL IT CHANGES GATT PROVISIONS PERMITTING SUBSIDIES FOR HIGHTECH PROJECTS WHICH REPUBLICANS CONTEND WILL INCREASE GOVERNMENT MEDDLING IN THE MARKET AND OTHER WOES TROUBLE IS GATT NEGOTIATIONS ON SUBSIDIES ENDED MONTHS AGO NOW THE LONGER THIS IMPASSE CONTINUES THE TOUGHER THE POLITICS OF GATT RAISING THE PROSPECT OF ANOTHER BRUISING TRADE BATTLE ON CAPITOL HILL BY THE FALL THE WHITE HOUSE EXPECTS CONGRESS TO BE CONSUMED WITH HEALTH CARE AND WELFARE REFORM WHICH COULD SQUEEZE OUT GATT UNTIL NEXT YEAR A DELAY WOULD GIVE POPULIST CRUSADERS WHO MADE NAFTA SUCH A BITTER FIGHT TIME TO MAKE AN ELECTIONYEAR ISSUE OUT OF GATT INSTEAD OF NAFTA'S GIANT SUCKING SOUND OPPONENTS RAIL AGAINST GATT'S FACELESS BUREAUCRATS IN GENEVA WHO WILL HAVE GREATER POWERS UNDER THE NEW ACCORD TO CHALLENGE US ENVIRONMENTAL AND SAFETY LAWS IF NAFTA WAS A JOBS DEBATE THIS IS A DEMOCRACY DEBATE SAYS LORI WALLACH THE HIGHVOLTAGE TRADE ORGANIZER AT THE CONSUMER GROUP PUBLIC CITIZEN WHO COORDINATED VISITS BY ACTIVISTS TO 84 LAWMAKERS DURING THE EASTER RECESS MR KANTOR SAYS THE ADMINISTRATION STILL WANTS CONGRESS TO VOTE ON THE TRADE PACT EARLY THIS SUMMER INDEED HE ALREADY HAS OBTAINED COMMITMENTS FROM GATT DELEGATES TO MOVE UP THE DATE THE ACCORD GOES INTO EFFECT BY SIX MONTHS TO JAN 1 1995 OR AS SOON THEREAFTER AS PRACTICABLE PARTLY TO PRESSURE CONGRESS FOR AN EARLY VOTE A LONG DELAY HE SAYS WOULD CAUSE OTHERS TO BEGIN TO WONDER IF OUR POLICY HAS CHANGED CONCERNING OPEN MARKETS AND EXPANDING TRADE BUT MAJORITY LEADER RICHARD GEPHARDT SAYS HE'S READY TO PUT OFF A GATT VOTE UNTIL NEXT YEAR I DON'T THINK WE SHOULD HAVE A DEADLINE OR TIMETABLE THAT PUSHES US HE SAYS FIRST THE WHITE HOUSE HAS TO SCROUNGE UP ENOUGH MONEY TO PAY FOR GATT SOME IN THE ADMINISTRATION ONCE HOPED TO GET A WAIVER FROM THE DEFICITREDUCTION LAW WHICH REQUIRES NEW REVENUES OR SPENDING CUTS TO PAY FOR NEW PROGRAMS AFTER ALL MR KANTOR ARGUES GATT'S BOOST TO THE ECONOMY WILL PRODUCE AT LEAST 3 IN FEDERAL REVENUES FOR EACH 1 OF TARIFF CUT BUT THAT IDEA FLOPPED DEMOCRATS WORRIED THAT MR KANTOR'S ARGUMENTS SOUNDED TOO MUCH LIKE THOSE USED BY THE BUSH WHITE HOUSE TO JUSTIFY A CAPITALGAINS TAX CUT REPUBLICANS DIDN'T WANT TO GIVE THE CLINTON WHITE HOUSE WITH ITS BIG SPENDING PLANS A PRECEDENT TO SEEK MORE WAIVERS EVEN FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN WEIGHED IN AGAINST A WAIVER NEXT MR KANTOR FLOATED A PLAN ON CAPITOL HILL TO SELL QUOTA RIGHTS TO IMPORT TEXTILES BUT HIS OWN LEGAL DEPARTMENT SHOT THAT ONE DOWN FINDING THAT THE PLAN VIOLATED THE NEW GATT PACT THEN LATE LAST MONTH MR KANTOR TREASURY SECRETARY LLOYD BENTSEN AND BUDGET DIRECTOR LEON PANETTA MET WITH CONGRESSIONAL LEADERS TO OUTLINE A BUNCH OF NEW UNPOPULAR IDEAS THEY WOULD CUT FARM SUBSIDIES BY ABOUT 3 BILLION ON THE ASSUMPTION THAT FARM INCOME WOULD RISE A LOSING ARGUMENT IN FARM STATES THEY WOULD CHARGE VARIOUS FEES FOR RADIO WAVES USED BY COMMUNICATIONS FIRMS BUT BROADCASTERS PERENNIALLY OPPOSE THAT IDEA AND LAWMAKERS DON'T LIKE TO ANNOY BROADCASTERS DURING AN ELECTION YEAR CLINTON OFFICIALS ALSO TALK ABOUT TAXING LIQUOR OR RENEWING THE SUPERFUND TAX ON CHEMICAL COMPANIES THAT IS DUE TO EXPIRE AT THE END OF NEXT YEAR AND USING THE REVENUES TO HELP PAY FOR GATT BUT THOSE TAXES ARE IN DEMAND TO PAY FOR OTHER PROGRAMS TOO INCLUDING MORE SUPERFUND TOXICWASTE CLEANUPS THEY TELL US THEY'RE NOT SURE WHAT TO DO SAYS SEN MAX BAUCUS THE MONTANA DEMOCRAT WHO CHAIRS A TRADE SUBCOMMITTEE HE STILL WANTS TO TRY FOR A BUDGET WAIVER ANY NEW REVENUE SHOULD GO TO PAY FOR HEALTH CARE HE SAYS BUSINESS THE BIG GATT BENEFICIARY BLUSTERS ABOUT THE ACCORD BUT DOESN'T HELP MUCH FOURTEEN BILLION DOLLARS IN THE SCHEME OF THINGS IS A SPIT IN THE BUCKET SAYS DONALD FISHER CHIEF EXECUTIVE OFFICER OF GAP INC REFERRING TO THE EARLY CALCULATION OF GATT'S PRICE TAG BUT HE QUICKLY ADDS THAT HE DOESN'T BACK ANY TAX INCREASE AND HE HATES IMPORTQUOTA AUCTIONS WHICH COULD RAISE THE PRICE OF GAP CLOTHES GATT'S WOES IN CONGRESS ARE COMPLICATED BY THE SURPRISINGLY EFFECTIVE OPPOSITION OF SEN JOHN DANFORTH A MISSOURI REPUBLICAN WHO IS A SENIOR MEMBER OF THE SENATE FINANCE COMMITTEE MR DANFORTH HAS BEEN RALLYING ALL THE SENATE'S REPUBLICANS AND A FEW DEMOCRATS TO ATTACK THE GATT PROVISION ALLOWING STEEP GOVERNMENT SUBSIDIES OF COMMERCIAL TECHNOLOGY PROJECTS MR KANTOR SAYS THE PROVISION PROTECTS SEMATECH A SEMICONDUCTOR CONSORTIUM AND OTHER HIGHTECH VENTURES THAT GET FEDERAL FUNDING BUT MR DANFORTH FEARS THAT GATT WILL IGNITE A SUBSIDIES RACE WITH OTHER COUNTRIES WHICH THE U S WILL LOSE TO SHOW HIS STRENGTH MR DANFORTH RECENTLY TURNED A SENATE DEBATE OVER AN OBSCURE TECHNOLOGYFUNDING BILL INTO A REFERENDUM ON GATT HE HELD THE SENATE FLOOR FOR THE GOOD PART OF A WEEK DEFEATED A DEMOCRATIC EFFORT TO SHUT OFF DEBATE AND FORCED THE ADMINISTRATION TO COMPROMISE WITH HIM BEFORE HE YIELDED DURING THE DEBATE HE SAYS MR KANTOR TOLD HIM THE ADMINISTRATION WOULD CONSIDER NEGOTIATING A SIDE AGREEMENT ON SUBSIDIES WITH OTHER MAJOR TRADING PARTNERS THAT WOULD INTERPRET THE AGREEMENT'S LANGUAGE IN A WAY THAT WOULD SHARPLY DEFINE THE USE OF SUBSIDIES IF THAT HAPPENS THE REPUBLICAN LAWMAKER BROADLY HINTS HE WOULD HELP LINE UP OTHER REPUBLICANS FOR A GATT FUNDING PLAN BUT NOW MR KANTOR SAYS HE HAS DECIDED AGAINST ANY SIDE DEAL SERIOUS CONCERNS ABOUT SUBSIDIES CAN BE ADDRESSED IN THE GATT LEGISLATION ITSELF US LAW OF COURSE DOESN'T BIND ANY OTHER NATION SO THAT PLAN IS UNLIKELY TO SATISFY SEN DANFORTH BUT THE TRADE REP MAY HAVE NO BETTER ALTERNATIVE IF THE US TRIES TO RENEGOTIATE ONE PART OF GATT THE EUROPEAN UNION AND OTHERS WOULD SURELY TRY TO RENEGOTIATE OTHER PARTS WATCHING THE HUBBUB FROM HIS CRAMPED OFFICE NEAR CAPITOL HILL IS PAT CHOATE A LEADER OF THE NAFTA FIGHT AND ADVISER TO ROSS PEROT HE IS STUDYING GATT'S SUCCESSOR ORGANIZATION CALLED THE WORLD TRADE ORGANIZATION WHICH GIVES EACH COUNTRY ONE VOTE NO MATTER ITS SIZE MAKING SLOVAKIA THEORETICALLY EQUAL TO THE US THAT MAKES THE WTO A UNITED NATIONS OF TRADE WHERE THE US HAS NO VETO HE SAYS ADMINISTRATION LAWYERS SAY THAT ANALOGY IS DEEPLY FLAWED ON IMPORTANT ISSUES THE US CAN DISREGARD A WTO FINDING THEY GO LINEBYLINE THROUGH THE STUPENDOUSLY COMPLEX ACCORD TO PROVE THEIR POINT NO MATTER MR CHOATE IS ALREADY BASHING GATT ON THE RADIO TALKSHOW CIRCUIT FOR THREATENING US SOVEREIGNTY OUTSIDE OF WASHINGTON HE SAYS YOU FIND THAT PEOPLE ARE OPPOSED TO ANY TRADE AGREEMENT 9404080013 940408 MINING FIRMS LIKELY TO POST EARNINGS GAINS HIGHER GOLD PRICES IN '94 FLOOD DAMAGES IN '93 ARE CITED IN ESTIMATES BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL MANY MINING COMPANIES WILL BE REPORTING HIGHER FIRSTQUARTER EARNINGS THIS YEAR THAN A YEAR AGO ANALYSTS SAID THE MOREFAVORABLE COMPARISONS ARE PARTLY DUE TO LAST YEAR'S FLOODING AT ARIZONA COPPER MINES AND THIS YEAR'S HIGHER GOLD PRICES AVERAGE GOLD PRICES FOR THE FIRST QUARTER ROSE ALMOST 17 TO 38434 AN OUNCE FROM 32984 A YEAR AGO ACCORDING TO JOHN GROSS PUBLISHER OF THE COPPER JOURNAL MEANWHILE COPPER PRICES FELL 12 TO 8685 CENTS A POUND FROM 9821 CENTS HE SAID LAST YEAR'S FIRSTQUARTER RAINS BELTED THE EARNINGS OF THREE OF THE NATION'S LARGEST COPPER PRODUCERS AS A RESULT ANALYSTS EXPECT ASARCO INC AND CYPRUS AMAX MINERALS CO TO SHOW IMPROVED FIGURES FOR THE LATEST QUARTER IN SPITE OF LOWER COPPER PRICES J CLARENCE MORRISON AN ANALYST FOR PRUDENTIAL SECURITIES RESEARCH PUTS CYPRUS AT 18 CENTS A SHARE BEFORE ANY WRITEDOWNS FROM ITS RECENT ACQUISITON OF AMAX INC COMPARED WITH A LOSS OF NINE CENTS A SHARE AND ASARCO AT A LOSS OF 16 CENTS AGAINST A LOSS OF 74 CENTS HE EXPECTS MAGMA COPPER CO TO REPORT A PROFIT OF SIX CENTS A SHARE AGAINST ONE CENT A YEAR AGO PHELPS DODGE CORP WHICH WASN'T HURT AS MUCH BY THE ARIZONA RAINS IN EARLY 1993 SHOULD REPORT EARNINGS OF 53 CENTS A SHARE DOWN FROM 85 CENTS A YEAR EARLIER BECAUSE OF LOWER COPPER PRICES HE SAID FREEPORTMCMORAN COPPER & GOLD INC SHOULD REPORT HIGHER EARNINGS BECAUSE OF BETTERGRADE ORE PROCESSED AT ITS INDONESIAN MINES AND LOWER COSTS SAID MARC COHEN AN ANALYST AT KIDDER PEABODY & CO THE COMPANY HASN'T ANY ARIZONA MINES AND THEREFORE WASN'T HURT BY LAST YEAR'S RAINS GOLDMINING COMPANIES BENEFITED FROM THE SIGNIFICANT INCREASE IN GOLD PRICES OVER THE YEAR MR COHEN ESTIMATES HOMESTAKE MINING CO WILL REPORT EARNINGS OF 12 CENTS A SHARE COMPARED WITH OPERATING EARNINGS OF FOUR CENTS A SHARE BEFORE RESTRUCTURING CHARGES LAST YEAR HE PUTS PLACER DOME INC AT SEVEN CENTS A SHARE VERSUS FIVE CENTS AMERICAN BARRICK RESOURCES CORP AT 20 CENTS A SHARE VERSUS 16 CENTS AND BATTLE MOUNTAIN GOLD CO AT BREAKEVEN COMPARED WITH A LOSS OF FOUR CENTS JOHN TUMAZOS AN ANALYST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP SAID HE EXPECTS PEGASUS GOLD INC TO REPORT EARNINGS OF EIGHT CENTS A SHARE COMPARED WITH A LOSS OF ONE CENT AND NEWMONT GOLD CO TO REPORT 28 CENTS A SHARE UP FROM 21 CENTS FOR THE REST OF THE YEAR ANALYSTS ARE SPLIT IN THEIR PREDICTIONS OF THE PACE OF ECONOMIC RECOVERY WORLDWIDE AND THEREFORE THE DIRECTION OF COPPER PRICES SOME THINK THE US EUROPEAN AND JAPANESE ECONOMIES WON'T ACCELERATE ENOUGH TO TRIGGER MORE COPPER DEMAND AT THE SAME TIME THAT NEW MINES AND MINE EXPANSIONS WILL BE ADDING ABOUT 4 TO WORLD COPPER SUPPLIES ONE SHOULD BE A LITTLE CAUTIOUS WHEN LOOKING AT COPPER COMPANIES' HIGHER EARNINGS SAID VICTOR LAZAROVICI AN ANALYST AT SMITH BARNEY SHEARSON WHO IS BEARISH ON COPPER FIRSTQUARTER EARNINGS WILL NOT BE INDICATIVE OF THE REST OF THE YEAR BUT MR MORRISON THE PRUDENTIAL ANALYST SAID HE EXPECTS WORLD COPPER DEMAND TO OUTSTRIP SUPPLY BY 100000 TONS OR ABOUT 1 OF TOTAL WORLDWIDE CONSUMPTION IN 1994 THE REAL STORY IS THAT THE INDUSTRIAL SIDE OF THE ECONOMY IN THE US IS DOING WELL MR MORRISON SAID AND NOW THERE ARE INDICATIONS THAT EUROPE IS STARTING TO TURN COMPLICATING ANY FORECASTS FOR GOLD IS THE UNCERTAINTY ABOUT INTEREST RATES BUT SOME ANALYSTS SAID THERE'S PLENTY REASON TO BE BEARISH ON GOLD STOCKS GIVEN THE HUGE INCREASE IN GOLD STOCK PRICES OVER THE PAST YEAR GOLD STOCKS ARE STATISTICALLY TWICE AS EXPENSIVE AS THEY WERE LAST YEAR SAID MR TUMAZOS HE ADDED THAT ONLY A HANDFUL OF GOLD COMPANIES INCLUDING AMERICAN BARRICK NEWMONT MINING CORP SANTA FE PACIFIC CORP'S GOLD UNIT AND FREEPORTMCMORAN COPPER & GOLD HAVE BOOSTED THEIR GOLD RESERVES ENOUGH TO JUSTIFY STOCK PRICE APPRECIATION OTHER COMPANIES HAD SHARE PRICE GAINS WITHOUT ANY IMPROVEMENT IN THEIR OUTLOOK OTHER THAN HIGHER GOLD PRICES THEREFORE HE ISN'T RECOMMENDING ANY GOLD STOCKS FOR PURCHASE HE ADDED 9404080012 940408 PIER 1 IMPORTS POSTS GAINS FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SALES AT ITS STORES OPEN AT LEAST A YEAR ROSE 11 IN THE FIVE WEEKS ENDED SATURDAY COMPARED WITH A YEAR AGO THE SPECIALTY RETAILER SAID TOTAL SALES IN THE PERIOD WERE 623 MILLION UP 14 FROM A YEAR EARLIER 9404080011 940408 WHO'S NEWS GLYKO BIOMEDICAL LTD GLYKO BIOMEDICAL LTD NOVATO CALIF THIS MAKER OF MEDICAL DIAGNOSTIC EQUIPMENT SAID THAT ITS CHAIRMAN JACK T JOHANSEN 51 YEARS OLD RESIGNED MR JOHANSEN A SENIOR VICE PRESIDENT AT MILLIPORE CORP WHICH OWNS 25 OF GLYKO IS EXPECTED TO BE SUCCEEDED BY ANOTHER MILLIPORE REPRESENTATIVE 9404080010 940408 EDUCATION POOR QUALITY FOUND IN FAMILY DAY CARE BY SUE SHELLENBARGER STAFF REPORTER OF THE WALL STREET JOURNAL THE BROADEST STUDY YET OF THE NATION'S MOST WIDELY USED KIND OF CHILD CARE FAMILY DAY CARE AND RELATIVE CARE REVEALS MAJOR QUALITY PROBLEMS WITH MORE THAN A THIRD OF THE CHILDREN STUDIED RECEIVING CARE OF SUCH POOR QUALITY THAT IT COULD HARM THEIR DEVELOPMENT THE SURVEY ALSO SHOWS THAT DROPPING THE KIDS OFF WITH A RELATIVE IN ORDER TO GO TO WORK MAY BE ONE OF THE WORST THINGS A PARENT CAN DO THE STUDY BY THE FAMILIES AND WORK INSTITUTE A NONPROFIT NEW YORK RESEARCH CONCERN EXAMINED FAMILY CHILD CARE WHICH IS INFORMAL CARE IN THE PROVIDER'S HOME OR IN A RELATIVE'S HOME FAMILY DAY CARE AND RELATIVE CARE ARE USED BY 33 OF EMPLOYED PARENTS COMPARED WITH 28 WHO USE CHILDCARE CENTERS AND 28 WHO CARE FOR THEIR CHILDREN THEMSELVES OFTEN BY WORKING DIFFERENT SCHEDULES BY SURVEYING 226 CHILDCARE PROVIDERS AND 820 MOTHERS AND OBSERVING THEIR CHILDREN DURING DAY CARE RESEARCHERS FOUND THAT ONLY HALF THE CHILDREN WERE SECURELY ATTACHED TO THEIR PROVIDERS OR FELT TRUSTING AND SECURE WITH THEM A FUNDAMENTAL MEASURE OF QUALITY ONLY 9 OF THE PROVIDERS WERE RATED AS GOOD QUALITY WHILE 56 PROVIDED ONLY ADEQUATE OR CUSTODIAL CARE AND 35 WERE INADEQUATE THE STUDY SAYS AND MORE THAN A QUARTER OF THE MOTHERS SURVEYED SAID THEY WERE SO DISSATISFIED THAT THEY WOULD USE OTHER CARE IF THEY COULD FIND IT UNEXPECTEDLY THE STUDY ALSO FOUND THAT CHILDREN ARE MORE LIKELY TO BE SECURELY ATTACHED TO UNRELATED CAREGIVERS THAN TO RELATIVES CARING FOR THEM APPARENTLY THE RESEARCHERS CONCLUDED BECAUSE MANY RELATIVES WOULD RATHER NOT CARE FOR THE CHILDREN BUT DO SO ONLY AS A FAVOR EDWARD ZIGLER DIRECTOR OF THE YALE UNIVERSITY BUSH CENTER IN CHILD DEVELOPMENT AND SOCIAL POLICY AND A FOUNDER OF HEAD START TERMS TRAGIC THE FINDING THAT SO FEW CHILDREN IN RELATIVE AND FAMILY DAY CARE RECEIVE HIGHQUALITY CARE IF A CHILD HAS HAD FIVE LOUSY YEARS OF CHILD CARE HE OR SHE WILL NOT ARRIVE AT SCHOOL AT AGE FIVE READY TO LEARN HE SAYS THE FINDINGS DON'T MEAN FAMILY DAY CARE AND RELATIVE CARE ARE WORSE THAN OTHER KINDS OF CHILD CARE STUDIES OF CHILDCARE CENTERS HAVE FOUND THAT ABOUT HALF THE CHILDREN ARE SECURELY ATTACHED TO WORKERS IN TYPICAL CENTERS AND ABOUT A QUARTER OF THE PARENTS USING CENTERS WOULD CHANGE THEIR ARRANGEMENTS IF THEY COULD BUT THE LATEST STUDY EXPLODES THE WIDELY ACCEPTED VIEW THAT FAMILY DAY CARE AND RELATIVE CARE ARE A MORE INTIMATE AND RELIABLE ALTERNATIVE TO CHILDCARE CENTERS DR ZIGLER SAYS THE STUDY ALSO SUGGESTS THAT STATE REGULATORS HAVE AN EVEN LOOSER GRASP ON THE UNDERGROUND CHILDCARE ECONOMY THAN WAS PREVIOUSLY BELIEVED ONE IN FIVE OF THE CAREGIVERS SURVEYED WAS OPERATING WITHOUT REQUIRED STATE LICENSES PREVIOUSLY MOST EXPERTS ASSUMED THAT MOST UNREGULATED PROVIDERS CARED FOR TOO FEW CHILDREN TO REQUIRE LICENSES THE BEST QUALITY CARE IN THE STUDY WAS USUALLY PROVIDED BY LICENSED NONRELATIVES WHO FOLLOWED GOOD SAFETY PRACTICES OPERATED IN A BUSINESSLIKE WAY PAYING TAXES PROVIDING CONTRACTS AND SO ON AND CARED FOR THREE TO SIX CHILDREN RATHER THAN ONE OR TWO THE BEST PROVIDERS ALSO TENDED TO CHARGE MORE CHILDREN FROM LOWINCOME AND MINORITY FAMILIES IN THE STUDY TENDED TO BE IN LOWER QUALITY CARE THAN OTHERS AND RELYING ON RELATIVES WASN'T A SOLUTION THE STUDY SHOWED THREEFIFTHS OF THE RELATIVES SURVEYED SAID THEY WERE ONLY HELPING OUT THE MOTHERS SUGGESTING THEY WOULD RATHER BE DOING SOMETHING ELSE ALSO NEARLY TWOTHIRDS OF THE RELATIVES WERE LIVING IN POVERTY CREATING STRESSED SOCIALLY ISOLATED CONDITIONS THE STUDY SAYS THE FINDINGS ARE SIGNIFICANT FOR THE WELFAREREFORM DEBATE SOME STATES PRESSURE WELFARE RECIPIENTS TO BECOME CHILDCARE PROVIDERS PUBLIC POLICY MEASURES MUST NOT PUSH OR REQUIRE PEOPLE TO TAKE CARE OF CHILDREN WHEN THEIR HEARTS OR INTERESTS LIE ELSEWHERE THE STUDY SAYS ALSO MANY PARENTS MAKE BAD ASSUMPTIONS IN CHOOSING CHILD CARE THE STUDY SHOWS WHILE PARENTS PLACE LITTLE IMPORTANCE ON WHETHER A PROVIDER IS LICENSED THE STUDY FOUND THAT LICENSED PROVIDERS TEND TO BE MORE SENSITIVE AND RESPONSIVE AND ARE FAR LESS LIKELY TO PROVIDE POORQUALITY CARE ALSO WHILE PARENTS PLACE A HIGH VALUE ON LONG EXPERIENCE PROVIDERS WITH MORE YEARS OF EXPERIENCE WERE MORE DETACHED AND HARSHER IN THEIR DEALINGS WITH CHILDREN THE FINDINGS UNDERLINE THE NEED FOR CONSUMER EDUCATION THE STUDY SAYS THE STUDY WAS DONE IN THE DALLAS LOS ANGELES AND CHARLOTTE NC AREAS AND FUNDED BY 10 FOUNDATIONS AND COMPANIES 9404080009 940408 US SHOE CORP SALES CINCINNATI US SHOE CORP SAID SAMESTORE SALES ROSE 11 IN THE FIVE WEEKS ENDED SATURDAY SALES OF US SHOE'S RETAILING OPERATIONS WERE 2067 MILLION ON 2259 STORES COMPARED WITH 1975 MILLION ON 2452 STORES IN THE SAME PERIOD A YEAR EARLIER SAMESTORE SALES IN THE TWO MONTHS ENDED APRIL 2 INCREASED 8 TOTAL RETAIL SALES WERE 3461 MILLION IN THE PERIOD COMPARED WITH 3398 MILLION A YEAR EARLIER IN THE MOST RECENT FIVEWEEK PERIOD US SHOE SAID SAMESTORE SALES CLIMBED 6 IN ITS WOMEN'S APPARELRETAILING UNIT 18 IN ITS DOMESTIC OPTICAL RETAILING GROUP AND 17 IN ITS FOOTWEARRETAILING DIVISION 9404080008 940408 MARKETING AND MEDIA DOW JONES NET UP 30 IN FIRST QUARTER REVENUE ROSE 77 NEW YORK DOW JONES & CO SAID NET INCOME FOR THE FIRST QUARTER ROSE 30 TO 402 MILLION OR 40 CENTS A SHARE FROM 309 MILLION OR 31 CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER'S RESULTS INCLUDE A ONETIME AFTERTAX CHARGE OF 3 MILLION OR THREE CENTS A SHARE FROM ADOPTION OF AN ACCOUNTING CHANGE FOR EMPLOYEES' POSTEMPLOYMENT BENEFITS EXCLUDING THE CHARGE NET INCOME IN THE QUARTER ROSE 40 WE ARE GRATIFIED THAT ALL SEGMENTS OF THE COMPANY CONTRIBUTED TO THE IMPROVED EARNINGS SAID PETER R KANN CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DOW JONES CLOSED AT 39125 UP 125 OPERATING INCOME IN THE LATEST QUARTER ROSE 36 TO 888 MILLION WHILE REVENUE ROSE 77 TO 4992 MILLION OPERATING INCOME AT DOW JONES'S INFORMATION SERVICES SEGMENT WHICH INCLUDES THE RESULTS OF THE COMPANY'S DOW JONES/TELERATE AND BUSINESS INFORMATION SERVICES GROUPS GREW 40 TO 481 MILLION REVENUE CLIMBED 99 TO 2299 MILLION THE BUSINESS PUBLICATIONS SEGMENT POSTED OPERATING INCOME OF 415 MILLION UP 31 WHILE REVENUE ROSE 72 TO 2135 MILLION ADVERTISING LINAGE AT THE WALL STREET JOURNAL INCREASED 17 IN THE FIRST QUARTER ON A PERISSUE BASIS ADVERTISING LINAGE WAS EVEN WITH A YEAR EARLIER OTTAWAY NEWSPAPERS DOW JONES'S COMMUNITY NEWSPAPER SUBSIDIARY HAD AN OPERATING INCOME INCREASE OF 18 TO 44 MILLION WHILE REVENUE ROSE 13 TO 558 MILLION ADVERTISING LINAGE AT OTTAWAY'S 21 DAILY NEWSPAPERS FELL 11 DOW JONES PUBLISHES THE WALL STREET JOURNAL BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES INCLUDING DOW JONES TELERATE AND COMMUNITY NEWSPAPERS 9404080007 940408 US LATIN AMERICAN COUNTRIES TO INCREASE REGIONAL BANK CAPITAL WASHINGTON THE US AND LATIN AMERICAN COUNTRIES WILL ANNOUNCE A 40 BILLION INCREASE IN THE INTERAMERICAN DEVELOPMENT BANK'S CAPITAL WHICH WILL ALLOW THE BANK TO INCREASE ANNUAL LENDING BY 20 TO 7 BILLION US OFFICIALS SAID AS PART OF THE PACT TO BE SEALED AT THE BANK'S ANNUAL MEETING THIS WEEKEND IN GUADALAJARA MEXICO US AND LATIN NATIONS ARE CUTTING THEIR OWNERSHIP STAKE IN THE BANK WHILE EUROPE AND JAPAN ARE INCREASING THEIR COMBINED SHARE TO ABOUT 15 FROM 7 THE US SHARE WILL FALL TO ABOUT 30 FROM 34 THE BANK IS THE LARGEST OF THE REGIONAL DEVELOPMENT BANKS AND THE CAPITAL INCREASE THE FIRST THE CLINTON ADMINISTRATION HAS PROPOSED FOR ANY OF THE BANKS REFLECTS THE CONTINUED US COMMITMENT TO LATIN AMERICA SAID US TREASURY UNDERSECRETARY LAWRENCE SUMMERS THE BUSH ADMINISTRATION FAVORED AN INCREASE IN THE BANK'S CAPITAL BUT THE CLINTON ADMINISTRATION HAS PUT ITS STAMP ON THE PLAN WHICH CALLS FOR THE BANK TO INCREASE BY 50 ITS LENDING FOR ENVIRONMENTAL AND SOCIAL PROGRAMS TO EARMARK 5 OF ITS PORTFOLIO FOR PRIVATE INFRASTRUCTURE PROJECTS AND TO MAKE MORE INFORMATION AVAILABLE TO THE PUBLIC ONLY 2 1/2 OF THE 40 BILLION CAPITAL INCREASE IS TO BE PAID IN CASH OVER THE NEXT FIVE YEARS THE REMAINDER IS WHAT'S KNOWN AS CALLABLE CAPITAL OR PROMISES BY GOVERNMENTS TO COME UP WITH MONEY IF NEEDED THE BANK LEVERAGES THE CAPITAL BY BORROWING ON WORLD FINANCIAL MARKETS THE TREASURY IS ASKING CONGRESS TO APPROPRIATE ABOUT 25 MILLION FOR EACH OF THE NEXT FIVE YEARS AS THE US SHARE OF PAIDIN CAPITAL THE US SHARE OF THE OVERALL CAPITAL INCREASE AMOUNTS TO 9 BILLION 9404080006 940408 INTERNATIONAL BRIEF MARUBENI CORP LINK IS FORMED TO MARKET PERSONAL COMPUTERS IN CHINA JAPANESE TRADING HOUSE MARUBENI CORP HAS FORMED A BUSINESS LINK WITH BEIJINGBASED LEGEND COMPUTER GROUP WHICH ALLOWS MARUBENI TO MARKET PERSONAL COMPUTERS IN CHINA A MARUBENI SPOKESMAN SAID THE BUSINESS LINKUP AT ITS INITIAL STAGE WILL SELL SOFTWARE AND MACINTOSH MODEL DESKTOP PCS BOTH MADE BY APPLE COMPUTER INC BY AS EARLY AS AUTUMN THE SPOKESMAN SAID LEGEND IS A LEADING MAKER OF PC'S IN CHINA MARUBENI AND LEGEND ARE PLANNING TO OPEN A SALES AND SERVICE CENTER IN BEIJING AND TO INCREASE THE NUMBER OF CHINESE SITES TO 200 TO 300 IN THE NEXT THREE YEARS HE SAID THE SPOKESMAN ALSO SAID CHINESE LANGUAGE COMPUTERSOFTWARE DEVELOPED BY LEGEND WILL BE SOLD IN SOUTHEAST ASIAN NATIONS 9404080005 940408 BUSINESS BRIEF BERTELSMANN AG GERMAN COMPANY SAYS SALES ROSE 62 FOR SIX MONTHS BERTELSMANN AG SAID GROUP SALES FOR THE FIRST SIX MONTHS OF ITS FISCAL YEAR CLIMBED 62 FROM A YEAR EARLIER TO 93 BILLION MARKS 54 BILLION THE GERMAN MEDIA COMPANY DIDN'T REPORT EARNINGS FIGURES IN ITS REPORT BUT SAID NET INCOME FOR THE JULYDECEMBER PERIOD IS WELL ABOVE PLAN THE STRONG INCREASE IN NET INCOME CAME ABOVE ALL FROM INCREASED PROFITABILITY IN THE US AND FURTHER POSITIVE DEVELOPMENTS IN THE GROUP'S CORE BUSINESSES PRIMARILY IN EUROPE OUTSIDE GERMANY IT SAID BERTELSMANN PREDICTED SALES FOR THE YEAR ENDING JUNE 30 WOULD SHOW AN INCREASE OF 6 TO MORE THAN 18 BILLION MARKS IT MADE THE FORECAST DESPITE CAUTIONING THAT SALES GROWTH IN SOME UNSPECIFIED AREAS SLOWED IN JANUARY AND FEBRUARY BERTELSMANN'S REPORT WAS WRITTEN BEFORE LAST WEEK'S DECISION TO SHUT DOWN GERMANY'S VOX TELEVISION STATION BERTELSMANN OWNED 249 OF THE STATION THROUGH ITS UFA FILM & FERNSEH GMBH SUBSIDIARY AND ACQUIRED AN ADDITIONAL 145 IN TRUST IN FEBRUARY 9404080004 940408 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 3/8 LOW 3 3/8 NEAR CLOSING BID 3 7/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 1/4 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 365 30 TO 44 DAYS 368 45 TO 59 DAYS 375 60 TO 94 DAYS 388 95 TO 119 DAYS 398 120 TO 149 DAYS 405 150 TO 179 DAYS 418 180 TO 239 DAYS 430 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 374 30 DAYS 385 60 DAYS 397 90 DAYS CERTIFICATES OF DEPOSIT 310 ONE MONTH 324 TWO MONTHS 338 THREE MONTHS 374 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 375 ONE MONTH 395 THREE MONTHS 430 SIX MONTHS BANKERS ACCEPTANCES 365 30 DAYS 380 60 DAYS 390 90 DAYS 4 120 DAYS 410 150 DAYS 420 180 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 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 571 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 818 60 DAYS 824 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 814 60 DAYS 822 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 9404080003 940408 BUSINESS BRIEF NISSAN MOTOR CORP MAXIMA SEDANS ARE RECALLED TO REPAIR THE AIRBAG SYSTEM NISSAN MOTOR CORP SAID IT IS RECALLING 71500 OF ITS 1992 AND 1993 MAXIMA SEDANS IN THE US AND CANADA TO REPLACE A SENSOR IN THE AIRBAG SYSTEM NISSAN SAID THE CURRENT SENSOR IS SENSITIVE TO UNDERBODY IMPACTS WHICH MAY CAUSE THE AIRBAG TO DEPLOY AIRBAGS ARE DESIGNED TO DEPLOY IN FRONTAL COLLISIONS NISSAN SAID IT IS AWARE OF THREE INJURIES INVOLVING AIRBAG DEPLOYMENT AFTER UNDERBODY IMPACT THE NEW SENSOR IS LESS SENSITIVE TO SUCH IMPACTS THE AUTO MAKER SAID NISSAN SAID IT BEGAN NOTIFYING OWNERS IN LATE MARCH TO TAKE THEIR VEHICLES TO DEALERSHIPS FOR FREE REPAIRS 9404080001 940408 MEDIA NEW YORK TIMES SELECTS OUTSIDER AS A TOP EDITOR BY MEG COX AND ALIX M FREEDMAN STAFF REPORTERS OF THE WALL STREET JOURNAL SHATTERING ITS TRADITION OF PROMOTING TOP EDITORS FROM WITHIN THE NEW YORK TIMES NAMED AS MANAGING EDITOR EUGENE L ROBERTS JR WHO LEFT THE TIMES IN 1972 TO BECOME EXECUTIVE EDITOR OF THE PHILADELPHIA INQUIRER THE ANNOUNCEMENT COMES ALONG WITH A MORE EXPECTED MOVE JOSEPH LELYVELD 57 YEARS OLD WILL SUCCEED MAX FRANKEL 64 WHO STEPS DOWN AFTER EIGHT YEARS AS EXECUTIVE EDITOR MR LELYVELD WHO HAS SERVED AS MANAGING EDITOR AT THE TIMES FOR THE PAST FOUR YEARS WILL MOVE INTO THE POST EFFECTIVE JULY 1 EDITORS AND REPORTERS AT LEADING NEWSPAPERS SAY MR ROBERTS'S RETURN IS AN INDICATION OF THE TIMES'S RENEWED COMMITMENT TO SERIOUS INVESTIGATIVE JOURNALISM HE IS ALSO VIEWED AS A MORALE BUILDER AND AN AGENT OF CHANGE THIS IS A MAN WHO CHANGES THE PAPERS HE'S IN CHARGE OF SAYS WARREN HOGE AN ASSISTANT MANAGING EDITOR AT THE TIMES HE IS ALL SUBSTANCE HE ISN'T BLUE SMOKE AND MIRRORS ADDS ROBERT J ROSENTHAL AN ASSISTANT MANAGING EDITOR AT THE INQUIRER WHILE AT THE INQUIRER MR ROBERTS 61 LED THAT PAPER TO DISTINCTION WINNING 17 PULITZER PRIZES IN 18 YEARS HIS APPOINTMENT WHICH PASSES OVER SEVEN CURRENT ASSISTANT MANAGING EDITORS IS THE LATEST EFFORT TO SHAKE UP THE PAPER BY ARTHUR SULZBERGER JR SINCE HE BECAME PUBLISHER TWO YEARS AGO THE PAPER IS CONTROLLED BY THE SULZBERGER FAMILY UNDER MR SULZBERGER THE TIMES HAS GREATLY EXPANDED THE PAPER'S FEATURE STYLE AND CULTURAL COVERAGE AND HAS INTRODUCED COLOR PRINTING TO ITS SUNDAY EDITION BUT SOME CRITICS COMPLAIN THAT DEPTH AND SERIOUSNESS HAVE BEEN SACRIFICED IN THE PROCESS UNDERMINING NEWSROOM MORALE THERE WERE MANY PEOPLE FROM INSIDE THE TIMES WHO COULD HAVE PLAYED THE ROLE BUT THERE WASN'T ONE OBVIOUS OUTSTANDING CANDIDATE SAID MR LELYVELD MOST OF OUR YOUNGER GENERATION OF EDITORS HAVE HELD THEIR JOBS A RELATIVELY SHORT TIME TO HAVE AN EDITOR OF GENE'S DISTINCTION AT MY SIDE FOR A FINITE TIME DOESN'T CUT OFF THE CAREER PATH OF ANYONE AT THE PAPER THE LAST TIME THE TIMES HIRED A MANAGING EDITOR FROM OUTSIDE WAS 1904 THE PAPER DID BRING IN A NEW NATIONAL EDITOR FROM ANOTHER PAPER SIX MONTHS AGO HOWEVER BY TRADITION AND PRACTICE REPORTERS AND EDITORS WHO LEAVE HAVEN'T BEEN WELCOME TO RETURN MR ROBERTS LEFT THE TIMES'S AT THE AGE OF 40 TO RUN THE INQUIRER CONVINCED FORMER ASSOCIATES SAY THAT AM ROSENTHAL NOT HE WAS IN LINE FOR THE TIMES' TOP EDITING JOB YESTERDAY MR ROSENTHAL WHO WAS THE PAPER'S TOP EDITOR FOR YEARS PRAISED HIS FORMER RIVAL SAYING HE TRANSFORMED THE INQUIRER INTO A PULITZER PRIZEWINNING MACHINE HE'LL EXCITE THE STAFF JOURNALISTICALLY EVEN MORE MR LELYVELD HAS BEEN STEPPING UP THE PAPER'S FOCUS ON INVESTIGATIVE REPORTING SINCE HE WAS NAMED MANAGING EDITOR FOUR YEARS AGO HE HAS HIRED A STRING OF TOP REPORTERS FROM OTHER PAPERS AND SEVERAL MONTHS AGO HEADED A MEETING WITH REPORTERS IN NEW YORK ON HOW TO IMPROVE INVESTIGATIVE REPORTING ASKED ABOUT WHETHER THAT WILL BE EMPHASIZED EVEN MORE WITH THE ADDITION OF MR ROBERTS MR LELYVELD SAID I DON'T WANT TO SUGGEST THAT I WILL DEEMPHASIZE CULTURE AND STYLE BUT SURE WE CARE ABOUT THE MEAT AND POTATOES THE PILLARS OF OUR NATIONAL AND INTERNATIONAL COVERAGE GENE WILL HELP US USE THE RESOURCES WE NOW HAVE TO BETTER ADVANTAGE THIS FALL MR FRANKEL A 42YEAR TIMES VETERAN WILL BEGIN WRITING A MEDIA COLUMN FOR THE TIMES SUNDAY MAGAZINE MR FRANKEL'S DEPARTURE BEFORE THE MANDATED RETIREMENT AGE OF 65 LEFT SOME TIMES INSIDERS SPECULATING THAT HE HAD BEEN ASKED TO STEP ASIDE BECAUSE OF WEAKNESSES IN THE PAPER AND AN ALOOF MANAGEMENT STYLE MR FRANKEL COULDN'T BE REACHED FOR COMMENT THE TIMES HAS GAINED A REPUTATION IN JOURNALISTIC CIRCLES IN RECENT YEARS FOR AN INCREASINGLY INSULAR BUREAUCRATIC CULTURE MR ROBERTS IS EXPECTED TO HAVE AN IMMEDIATE IMPACT ON THAT IN MR HOGE'S VIEW MR ROBERTS'S APPOINTMENT REPRESENTS AN UNEXPECTED HUMILITY ON THE TIMES'S PART HIS MISSION MR HOGE SAYS WILL BE NOT SO MUCH CHANGING THE PAPER'S CONTENT BUT HOW WE RUN AND MANAGE OURSELVES THE TIMES'S FINANCIAL CONDITION PARTICULARLY ITS ADVERTISING REVENUE WAS DEEPLY SHAKEN IN RECENT YEARS BY THE 1987 STOCKMARKET CRASH FOLLOWED BY THE PROLONGED RETAIL RECESSION PARTICULARLY IN NEW YORK CITY RESULTING IN COSTCUTTING AND SOME STAFF REDUCTION BUT ALONG WITH MUCH OF THE REST OF THE INDUSTRY THE COMPANY BOUNCED BACK IN THE LAST QUARTER OF 1993 TURNING IN OPERATING PROFITS THAT EXCEEDED ANALYSTS' ESTIMATES IN 1993 THE COMPANY REPORTED EARNINGS OF 61 MILLION AFTER A NUMBER OF SPECIAL WRITEDOWNS ON REVENUE OF 202 BILLION IN OCTOBER THE COMPANY ACQUIRED AFFILIATED PUBLICATIONS PARENT OF THE BOSTON GLOBE FOR 11 BILLION TIMES STAFFERS HAD ANTICIPATED MR LELYVELD'S PROMOTION THOUGH HE HADN'T GROOMED A CLEAR HEIR APPARENT FOR THE MANAGING EDITOR JOB SPECULATION ABOUT WHO WOULD SUCCEED HIM HAD INCLUDED HOWELL RAINES PROMOTED RECENTLY TO EDITORIAL PAGE EDITOR AND METROPOLITAN EDITOR GERALD BOYD AN ASSISTANT MANAGING EDITOR MR ROBERTS IS TAKING A THREEYEAR LEAVE OF ABSENCE FROM HIS TEACHING JOB AT THE UNIVERSITY OF MARYLAND'S SCHOOL OF JOURNALISM DURING THIS PERIOD THE TIMES CAN GROOM ITS NEXT GENERATION OF TOP EDITORS THE SULZBERGERS ARE USING AN OLDFASHIONED MANAGEMENT TECHNIQUE IN BRINGING IN AN OUTSIDER AS A MECHANISM FOR CHANGE HOWEVER WHAT IS UNUSUAL ABOUT MR ROBERTS'S APPOINTMENT IS THAT HE IS BEING SLOTTED IN THE NO 2 POSITION IN THE COMPANY RATHER THAN THE TOP JOB MR ROBERTS IS KNOWN AS A REPORTER'S EDITOR WHO GIVES REPORTERS THE FREEDOM AND ENCOURAGEMENT TO TAKE ON AMBITIOUS PROJECTS ONE OF HIS FAVORITE MAXIMS ASSOCIATES SAY IS GREAT STORIES DON'T BREAK THEY OOZE WHEN HE WORKED PREVIOUSLY AT THE TIMES AS NATIONAL EDITOR HE WAS THE ARCHITECT OF EXPANDED NATIONAL COVERAGE VASTLY INCREASING THE NUMBER OF REPORTERS OUTSIDE NEW YORK AN ABSENTMINDED TACITURN SOUTHERNER MR ROBERTS IS KNOWN FOR HIS DISREGARD FOR THE ORDINARY MINUTIAE OF LIFE ONE DAY HE TURNED TO HIS SECRETARY AT THE INQUIRER AND ASKED DID I EAT TODAY HE WAS KNOWN FOR PARKING MORE THAN ONE CAR IN THE NEWSPAPER'S PARKING LOT HAVING FORGOTTEN THAT HE'D DRIVEN IN THE PREVIOUS DAY HE ONCE SET HIS DESK ON FIRE WITH A CIGARETTE RECALLS ROBERT ROSENTHAL OF THE INQUIRER HE WAS VERY UNTIMESLIKE HIS SHIRT MIGHT BE HANGING OUT HIS SHOES WOULD BE OFF THERE WOULD BE THE LONGEST ASH YOU COULD IMAGINE HANGING OFF HIS LIP HE IS SOMEONE WHO IS EASILY MISJUDGED AND UNDERESTIMATED WHICH WAS HIS GREAT TRICK AS A REPORTER 9404080084 940322 REVIEW & OUTLOOK EDITORIAL LANDLORDS' RIGHTS IT WOULD BE NICE IF THE POLITICALLY ENLIGHTENED ELITES PAID AS MUCH ATTENTION TO THE RIGHTS OF HOMO SUPERINTENDUS THE ORDINARY LANDLORD AS THEY DO TO THOSE OF SNAIL DARTERS RAIN FORESTS AND OTHER SUCH EXOTICA NICE BUT UNLIKELY IN RECENT YEARS LANDLORDS HAVE BEEN HEMMED IN BY ONE REGULATION AFTER ANOTHER THE UPSHOT IS THAT IN MANY PLACES THEY CAN'T RAISE THE RENT KICK OUT CRACKHEAD TENANTS OR CHOOSE WHO OCCUPIES THEIR BUILDING WITHOUT THE NANNY STATE'S OK NOW ONE MASSACHUSETTS FAMILY IS FIGHTING BACK AND IN THE PROCESS STANDING UP FOR RELIGIOUS AS WELL AS PROPERTY RIGHTS RICK AND PAUL DESILETS BROTHERS WHO OWN AN APARTMENT BUILDING IN TURNERS FALLS MASS REFUSED IN 1989 TO RENT ONE OF THEIR UNITS TO CYNTHIA TARAIL AND MARK LATTANZI AN UNMARRIED COUPLE THE DESILETS ARE DEVOUT CATHOLICS AND IN THEIR MINDS SEX OUTSIDE OF MARRIAGE IS WRONG NOT ONLY MORALLY WRONG BUT ALSO LEGALLY AN OLD STATE LAW STILL ON THE BOOKS FORBIDS FORNICATION THAT LAW NOTWITHSTANDING THE MASSACHUSETTS ATTORNEY GENERAL'S OFFICE SUED THE DESILETS CLAIMING THEY HAD VIOLATED A 1974 STATUTE PROHIBITING HOUSING DISCRIMINATION BASED ON MARITAL STATUS WITH THE HELP OF ATTORNEYS FROM PAT ROBERTSON'S AMERICAN CENTER FOR LAW AND JUSTICE THE DESILETS FOUGHT BACK CHARGING THAT THE STATE WAS TRYING TO VIOLATE THEIR FIRST AMENDMENT RIGHTS ROUND I WENT TO THE DESILETS A STATE JUDGE THREW OUT THE ATTORNEY GENERAL'S CASE IN 1992 ROUND II BEGAN LAST MONTH WHEN THE STATE HIGH COURT HEARD AN APPEAL FILED BY THE ATTORNEY GENERAL A DECISION IS EXPECTED IN THE NEXT FEW MONTHS YOU DON'T HAVE TO AGREE WITH THE DESILETS' RELIGIOUS VIEWS TO BE SYMPATHETIC TO THEIR PLIGHT THEY'RE NOT BIGOTS THEY'RE WILLING TO RENT TO JEWS OR BUDDHISTS BLACKS OR HISPANICS MARRIED OR UNMARRIED HOWEVER THEY DRAW THE LINE AT TENANTS WHO COMMIT IN THEIR EYES OBJECTIONABLE BEHAVIOR ON THE PREMISES THEIR POSITION IS ESSENTIALLY NO DIFFERENT FROM A JEWISH SYNAGOGUE REFUSING TO RENT ITS MEETING HALL TO A NEONAZI GATHERING IT'S A MORAL STAND WE'RE MAKING PAUL DESILETS TELLS US AND IT COSTS US DEARLY IN LOST RENT YET THE DESILETS' DECISION HAS DRAWN A STORM OF CONTROVERSY A NUMBER OF RELIGIOUS GROUPS HAVE FILED AMICUS BRIEFS FOR THE BROTHERS WHILE THE USUAL SUSPECTS WHO KEEP THEIR RADARS TUNED FOR ERRANT INTRUDERS INTO THEIR REALM HAVE RAISED THE SPECTER OF FASCISM DESCENDING IF THE DESILETS GET THEIR WAY THIS IS A MAJOR BATTLE IN THE CULTURAL WARS SAYS NIKOLAS NIKAS THE DESILETS' LAWYER TWO SIMILAR CASES IN MINNESOTA AND CALIFORNIA WERE DECIDED IN FAVOR OF THE LANDLORD EVEN BEFORE CONGRESS PASSED THE RELIGIOUS FREEDOM RESTORATION ACT LAST YEAR THE BAY STATE CASE COULD BE AN IMPORTANT BELLWETHER OF WHETHER THE COURTS BELIEVE THAT RELIGIOUS SENSIBILITIES DESERVE THE SAME PROTECTION AS MORE POPULAR ATTITUDES IN RECENT YEARS A TROUBLING DOUBLE STANDARD HAS BEEN EVIDENT ATHEISTS ARE SHIELDED FROM RELIGION IN THE TOWN SQUARE YET RELIGIOUS PEOPLE HAVE NO PROTECTION FROM ANTIRELIGIOUS SECULAR HUMANIST VIEWS IN SAY THE CLASSROOM IT WILL BE INTERESTING TO SEE IF THE MASSACHUSETTS COURT RECOGNIZES THAT ALLOWING A NONCHRISTIAN TO VIEW A CRECHE ON MAIN STREET IS FAR LESS INTRUSIVE THAN FORCING A CATHOLIC TO TAKE INTO HIS OWN BUILDING A COUPLE WHOSE BEHAVIOR IS DEEPLY OFFENSIVE TO HIM THE DESILETS CASE ALSO WILL TEST WHETHER THE COURTS BELIEVE THAT INVESTING YOUR TIME SWEAT AND MONEY IN A PROPERTY ENTITLES YOU TO CERTAIN RIGHTS OR WHETHER THE STATE CAN ABRIDGE YOUR RIGHTS IN THE NAME OF ANY MORAL TREND OF THE MOMENT THE EVIDENCE SO FAR HASN'T BEEN ENCOURAGING COURTS IN MASSACHUSETTS AND ELSEWHERE HAVE NOT ONLY UPHELD INSANELY RESTRICTIVE RENT CONTROLS BUT ALSO FORCED LANDLORDS TO SPEND MILLIONS OF DOLLARS ON LEADPAINT CLEANUPS OF DUBIOUS MERIT THE DESILETS CASE NO MATTER HOW IT TURNS OUT WILL NOT RESOLVE THIS OLD DISPUTE BUT IT DOES HAVE THE POTENTIAL TO PROVIDE SOME SATISFACTION TO THOSE OF US WHO HOLD THE UNFASHIONABLE BELIEF THAT LANDLORDS PERFORM A MORE VALUABLE FUNCTION IN THE OVERALL SCHEME OF THINGS THAN DO SNAIL DARTERS SEE RELATED LETTER LETTERS TO THE EDITOR IT'S NOT A CASE OF THEM VS US WSJ APRIL 8 1994 9403220081 YY94 MM04 9404080057 940331 LETTERS TO THE EDITOR PENDERGAST AND TRUMAN IN REGARD TO PAUL GIGOT'S MARCH 25 POTOMAC WATCH PENULTIMATE PARAGRAPH PERHAPS NONE OF THAT WOULD MATTER IF THE CLINTONS HAD LEFT IT ALL BEHIND IN LITTLE ROCK HARRY TRUMAN MANAGED TO SHED THE BAGGAGE OF THE ST LOUIS PENDERGAST MACHINE AS PRESIDENT AFTER ALL PRESIDENT TRUMAN HAILED FROM KANSAS CITY NOT ST LOUIS THE PENDERGAST MACHINE OPERATED IN JACKSON COUNTY WHICH IS OF COURSE KANSAS CITY BY THE WAY WHERE WAS YOUR EDITORIAL STAFF'S MORAL INDIGNATION DURING THE SILVERADO/NEIL BUSH SCANDAL YOUR EDITORIAL PAGE IS ALWAYS FUN TO READ MAKES UP FOR NOT HAVING COMICS SEE RELATED LETTER LETTERS TO THE EDITOR IT'S UNFAIR TO COMPARE SILVERADO WHITEWATER WSJ APRIL 8 1994 9403310099 YY94 MM04 9404080033 940314 MANAGER'S JOURNAL THE CURSE OF WHISTLEBLOWING BY MARCY MASON LAST SUMMER INTERNATIONAL PAPER HEADQUARTERED IN PURCHASE NY IMPLEMENTED THE COMPLIANCE LINE THIS CONFIDENTIAL 800 NUMBER HOTLINE WAS DESCRIBED IN A COMPANY ANNOUNCEMENT AS A SIMPLE WAY FOR EMPLOYEES TO REPORT ACTIVITIES THAT MAY INVOLVE CRIMINAL CONDUCT OR CORPORATE POLICY VIOLATIONS IN OTHER WORDS INTERNATIONAL PAPER WANTS ITS STAFF TO SNITCH IT'S A FRIGHTENING CONCEPT SAYS A 16YEAR VETERAN OF THE COMPANY IF SOMEONE DOESN'T LIKE YOU HE CAN CALL THE NUMBER EVEN IF THERE'S NOTHING TO BACK IT UP THEY'RE STILL GOING TO DO SOME KIND OF INVESTIGATION IT'S THE BIG BROTHER THING YOU'RE ENCOURAGED TO REPORT ON YOUR NEIGHBORS AND FRIENDS SUCH FEARS ARE WORTHY OF SERIOUS CONSIDERATION MOST OF THE PREMIER ETHICS PROGRAMS AT US CORPORATIONS HAVE SIMILAR HOTLINE REPORTING SYSTEMS SAYS W MICHAEL HOFFMAN DIRECTOR OF THE CENTER FOR BUSINESS ETHICS AND PROFESSOR OF ETHICS AT BENTLEY COLLEGE IN WALTHAM MASS THE NUMBER OF HOTLINES WHICH MR HOFFMAN ESTIMATES AT MORE THAN 100 IS GROWING ESPECIALLY AFTER THE FEDERAL SENTENCING GUIDELINES FOR CORPORATE CRIMES CAME OUT IN NOVEMBER 1991 TO SATISFY THE GUIDELINES AN ORGANIZATION MUST PROVE THAT IT HAS EXERCISED DUE DILIGENCE TO PREVENT AND DETECT CRIMINAL CONDUCT BY ITS EMPLOYEES AND OTHER AGENTS TO DO SO A COMPANY MUST UTILIZE MONITORING AND AUDITING SYSTEMS DESIGNED TO DETECT CRIMINAL CONDUCT SUCH AS AN ETHICS HOTLINE MR HOFFMAN EXPLAINS COMPANIES FAILING TO COMPLY CAN BE SUBJECT TO FINES COSTING THEM HUNDREDS OF MILLIONS OF DOLLARS THE DANGERS OF THESE MECHANISMS ARE VERY REAL THEY CREATE AN ENVIRONMENT OF MISTRUST SAYS BARBARA LEY TOFFLER A PRINCIPAL AT RESOURCES FOR RESPONSIBLE MANAGEMENT A BOSTON CONSULTING FIRM AND A FORMER PROFESSOR OF ORGANIZATIONAL BEHAVIOR AND HUMAN RESOURCE MANAGEMENT AT THE HARVARD BUSINESS SCHOOL COMPANIES TALK ABOUT EMPOWERMENT AND SETTING UP AUTONOMOUS TEAMS SHE SAYS BUT GUESS WHAT IF PEOPLE ARE SO AFRAID THAT THEY'RE GOING TO BE QUESTIONED INVESTIGATED OR REPORTED ON DO YOU THINK ANYONE IS GOING TO DARE TO TAKE ANY KIND OF INDEPENDENT STEPS THAT SOMEBODY ELSE MIGHT SEE AS BEING WRONG INSTEAD WHAT IT PRODUCES MS TOFFLER SAYS IS A VERY DEMORALIZED ANGRY WORK FORCE PARTICULARLY DURING DIFFICULT ECONOMIC TIMES WHEN PEOPLE ARE ANXIOUS ABOUT KEEPING THEIR JOBS SUCH WAS THE CASE AT A HEATING AND OIL COMPANY THAT CHOSE TO INSTALL A HOTLINE FIVE YEARS AGO TO RESOLVE RACIAL DISCRIMINATION PROBLEMS SAYS RENANA BROOKS A PSYCHOLOGIST IN WASHINGTON DC WHO TREATS PEOPLE WHO HAVE LOST THEIR JOBS BECAUSE THEY HAVE BEEN WHISTLEBLOWERS WHEN PEOPLE STARTED TO REPORT DISCRIMINATION A CAMPAIGN OF INTIMIDATION BEGAN SUPERVISORS VIEWED THOSE THEY BELIEVED DID THE REPORTING AS TROUBLEMAKERS AND BEGAN DOCUMENTING THEM TO BE FIRED IT'S A HOSTILE ENVIRONMENT NOW SAYS MS BROOKS THE WHOLE CLIMATE OF THE COMPANY HAS BECOME POLARIZED PEOPLE BECAME VERY DEFENSIVE AND FELT THEY WERE BEING ATTACKED SOME EVEN HAD NERVOUS BREAKDOWNS SHE NOTES THIS SIGNALS ANOTHER PROBLEM THAT NEEDS TO BE ADDRESSED IF PEOPLE ARE CALLING IN ANONYMOUSLY ACCUSING JOHN DOE OF VIOLATING SOMETHING HOW ARE JOHN DOE'S RIGHTS GOING TO BE PROTECTED ASKS MR HOFFMAN IN THIS COUNTRY WE HAVE LAWS WHEN YOU'RE OUTSIDE THE CORPORATION YOU HAVE THE RIGHT TO FACE YOUR ACCUSER YET INSIDE THE CORPORATION THE SAME RULES OF JUSTICE DON'T APPLY INTERESTINGLY ENOUGH EVEN THOSE WHO DEFEND WHISTLEBLOWERS ARE SKEPTICAL OF HOTLINES ONE SUCH DOUBTER IS LOUIS CLARK EXECUTIVE DIRECTOR OF THE GOVERNMENT ACCOUNTABILITY PROJECT A NONPROFIT LEGAL FOUNDATION IN WASHINGTON HOTLINES ARE SET UP WITHOUT ANY KIND OF PROMISES OF HOW THEY ARE GOING TO PROTECT THE PEOPLE WHO USE THEM HE SAYS IF THERE AREN'T ANY GUARANTEES OF ADEQUATE PROTECTION THEN ESSENTIALLY YOU'RE OFFERING SOMETHING TO PEOPLE THAT WILL END UP ENDANGERING THEIR JOBS THEIR RELATIONSHIPS WITH THEIR COWORKERS AND PERHAPS THEIR LIVES AND HISTORICALLY WHISTLEBLOWERS HAVE PAID A VERY HIGH PRICE FOR THEIR GOOD DEEDS OF THE 1700 WHISTLEBLOWERS INTERVIEWED BY EDNA OTTNEY A QUALITY ASSURANCE ENGINEER WHO HAS INVESTIGATED EMPLOYEE CONCERNS IN THE NUCLEAR POWER INDUSTRY SINCE 1985 90 EXPERIENCED NEGATIVE FALLOUT OTHER STUDIES CONCUR INCLUDING THE MOST RECENT A SURVEY OF 35 AUSTRALIAN WHISTLEBLOWERS PUBLISHED IN THE BRITISH MEDICAL JOURNAL LAST SEPTEMBER THE STUDY FOUND EIGHT OF THE WHISTLEBLOWERS HAD LOST THEIR JOBS AS A RESULT OF THEIR ACTIONS 10 HAD BEEN DEMOTED 10 HAD RESIGNED OR RETIRED EARLY BECAUSE OF ILLHEALTH RELATED TO VICTIMIZATION 15 WERE TAKING PRESCRIBED MEDICATION TO DEAL WITH THE STRESS AND 17 HAD CONSIDERED SUICIDE FOR SOME WHISTLEBLOWERS THE RETALIATION HAS BEEN EVEN GRAVER IN NOVEMBER 1992 TOM MONFILS AN EMPLOYEE OF THE JAMES RIVER PAPER MILL IN GREEN BAY WIS BLEW THE WHISTLE ON A FELLOW WORKER FOR THEFT HE TELEPHONED THE LOCAL POLICE ASSUMING THAT HIS CALL WOULD REMAIN CONFIDENTIAL UNFORTUNATELY HE ASSUMED WRONG TWO WEEKS AFTER MR MONFILS SNITCHED HE WAS FOUND DEAD AT THE BOTTOM OF A TISSUE PULP HOLDING VAT WITH A 40POUND WEIGHT TIED TO HIS NECK IT WAS A BOTCHED SITUATION SAYS JACK YUSKO MANAGER OF HUMAN RESOURCES AT THE MILL REFERRING TO THE RELEASE OF MR MONFILS'S RECORDED TELEPHONE CONVERSATION THIS PROMPTS A RATHER IMPORTANT QUESTION IF A POLICE DEPARTMENT PROFESSIONALLY TRAINED TO DEAL WITH CRIMINAL ACTIVITY CAN MISHANDLE INFORMATION COMMUNICATED OVER THE PHONE COULDN'T A CORPORATION USING ITS OWN INTERNAL MECHANISM DO THE SAME ON PAPER THESE HOTLINES SOUND WONDERFUL SAYS MS OTTNEY THE QUALITY ASSURANCE ENGINEER THEY TELL EMPLOYEES WE NEED TO KNOW WHAT'S WRONG AND WHAT COULD BE DONE BETTER SO THAT WE CAN BE A FAMILY AND WORK WITH HIGH ETHICS THAT'S IN A PERFECT WORLD BUT IN REALITY IT'S A FARCE THE PROBLEM ACCORDING TO MS OTTNEY LIES IN THE IMPLEMENTATION CONFIDENTIALITY INVOLVES FAR MORE THAN PROMISING TO KEEP SOMEONE'S NAME SECRET YOU CAN PROMISE EMPLOYEES ANYTHING BUT IF YOU'RE NOT HELD LEGALLY ACCOUNTABLE WITH A BINDING AGREEMENT TO KEEP THAT PROMISE IT DOESN'T MEAN ANYTHING SO HOW CAN COMPANIES COMPLY WITH THE FEDERAL SENTENCING GUIDELINES AND STILL PROTECT THEIR EMPLOYEES THE FEDERAL SENTENCING GUIDELINES DON'T SAY THAT A HOTLINE IS AN ABSOLUTE NECESSITY SAYS FORMER US ATTORNEY PETER VAIRA NOW PRACTICING IN PHILADELPHIA RATHER THE GUIDELINES WANT A COMPANY TO ESTABLISH A METHOD WHERE EMPLOYEES ARE ABLE TO COMMUNICATE WITH THE LEAST AMOUNT OF PROBLEMS THE BEST WAY TO DO THAT SAYS MS OTTNEY IS TO WORK WITH A TOTALLY INDEPENDENT OUTSIDE COMPANY THAT'S BEEN GIVEN THE AUTHORITY TO RECEIVE AND INVESTIGATE COMPLAINTS BUT KEEPS THE NAMES OF THE INDIVIDUALS INVOLVED CONFIDENTIAL LEGITIMATE PROBLEMS ARE REPORTED TO MANAGEMENT NOT IDENTITIES AS SUCH COMPANIES CAN OBJECTIVELY FOCUS THEIR ATTENTION ON RESOLVING THEIR PROBLEMS AND PREVENT ANY NEW ONES FROM OCCURRING MS MASON IS A WRITER LIVING IN CHICAGO SEE RELATED LETTER LETTERS TO THE EDITOR WE FIX PROBLEMS INSTEAD OF BLAME WSJ MARCH 21 1994 SEE RELATED LETTERS LETTERS TO THE EDITOR DON'T LET THAT WHISTLE SCARE YOU WSJ APRIL 8 1994 9403140048 9403210093 YY94 MM03 YY94 MM04 9404080032 940314 LEISURE & ARTS ABOUT THOSE DUCKS HOLDEN BY MARIE WINN I KNOW IT'S PROBABLY TOO LATE AND YOU DON'T GIVE A DAMN ABOUT SUCH THINGS ANY MORE YOU'RE PROBABLY IN SOME CRUMMY RETIREMENT COMMUNITY IN FLORIDA OR ARIZONA OR SOMEWHERE FOR CRYING OUT LOUD HERE'S HOW I FIGURE IT IN 1945 WHEN YOUR AUTHOR JD SALINGER PUBLISHED THE FIRST STORY ABOUT YOU IN COLLIER'S MAGAZINE YOU WERE A JUNIOR IN HIGH SCHOOL SO YOU'RE GOING TO GET YOUR SOCIAL SECURITY IN THE NEXT COUPLE OF YEARS BUT ALL THROUGH THE CATCHER IN THE RYE YOU KEPT ASKING A QUESTION A REALLY GOOD QUESTION AND NOBODY EVER GAVE YOU AN ANSWER IT WAS PATHETIC I MEAN YOU REALLY WANTED SOME INFORMATION AND IN CHAPTER 12 ALL HORWITZ THE TAXI DRIVER WOULD SAY WAS HOW THE HELL SHOULD I KNOW NO WONDER YOU ENDED UP IN A LOONY BIN IN THE LAST CHAPTER I HOPE I'M NOT GIVING AWAY ANY SECRETS OR ANYTHING BUT CATCHER HAS BEEN OUT FOR 43 YEARS JUST ABOUT AND I GUESS MOST PEOPLE KNOW HOW IT ENDS BY NOW YOU REMEMBER YOUR QUESTION THE ONE ABOUT THE DUCKS IN CENTRAL PARK YOU WERE WORRIED ABOUT WHAT HAPPENS TO THOSE DUCKS WHEN ALL THE LAKES FREEZE OVER YOU WONDERED WHETHER SOME GUY CAME IN A TRUCK AND TOOK THEM AWAY TO A ZOO OR SOMETHING IT SHOWED THAT YOU WERE A SENSITIVE KID HOLDEN IT REALLY DID YOUR CARING ABOUT THE DUCKS AND EVERYTHING I MEAN MOST PEOPLE JUST DON'T GIVE A DAMN ABOUT THE ANIMALS IN THE PARK AND ALL WELL ALL THESE YEARS I'VE KIND OF WONDERED ABOUT YOUR QUESTION MYSELF BUT NOT VERY HARD BECAUSE THINGS HAVE CHANGED SINCE THE 1940S OR '50S WHEN YOU WERE GETTING KICKED OUT OF THAT PHONY PREP SCHOOL AND MEETING OLD SALLY HAYES UNDER THE CLOCK AT THE BILTMORE WOULD YOU BELIEVE IT HOLDEN THAT CLOCK ISN'T THERE ANYMORE THEY'VE TAKEN DOWN THE WHOLE DAMN HOTEL FOR CHRISSAKE BUT THAT'S NOT WHAT I MEAN WHEN I SAY THINGS HAVE CHANGED I MEAN THAT IT HASN'T BEEN SO COLD THESE WINTERS I REMEMBER CENTRAL PARK IN THE '40S AND '50S IN THOSE DAYS IT GOT REALLY COLD IN JANUARY OR FEBRUARY KIDS USED TO ACTUALLY ICE SKATE ON THE OLD ROWBOAT LAKE LIKE ME AND MY SISTER OLD JANET USED TO SKATE THERE ALL THE TIME AND SO DID A LOT OF OTHER PEOPLE OF COURSE WE DIDN'T HAVE MUCH CHOICE IF WE WANTED TO SKATE BECAUSE THEY DIDN'T HAVE ANY SKATING RINKS IN THE PARK IN THOSE DAYS THERE WAS ONLY THE RINK AT ROCKEFELLER CENTER AND THAT ONE WAS TOO EXPENSIVE BESIDES ALL THE GIRLS THERE HAD THESE LITTLE SKATING DRESSES WITH WHITE FUR AT THE HEM AND SLEEVES I DIDN'T HAVE ONE IN THOSE DAYS I'M SORRY TO TELL YOU HOLDEN I DIDN'T WORRY ABOUT THE DUCKS LIKE YOU DID I HONESTLY NEVER GAVE THE DUCKS A SINGLE THOUGHT I DON'T KNOW WHAT WAS WRONG WITH ME SOMETHING I GUESS BECAUSE I NEVER GOT KICKED OUT OF SCHOOL EITHER BY THE TIME I GREW UP AND BEGAN TO REALLY CARE ABOUT DUCKS AND STUFF THE WINTERS STOPPED BEING SO COLD I DON'T KNOW WHY EXACTLY MAYBE THE GREENHOUSE EFFECT OR WHATEVER BUT IT'S THE TRUTH THE LAKES IN CENTRAL PARK HARDLY EVER FROZE OVER DURING THE PAST FEW DECADES NOT SOLIDLY SO YOU COULD SKATE ON THEM AND NOT ALL OVER SO ANYBODY HAD TO WORRY ABOUT THE DUCKS BUT RECENTLY I'VE BEEN THINKING ABOUT YOU A LOT HOLDEN REALLY I HAVE BECAUSE THIS HAS BEEN ONE UNBELIEVABLY COLD WINTER I MEAN IT'S BEEN REALLY COLD ALL THE LAKES AND EVEN THE RESERVOIR IN CENTRAL PARK HAVE FROZEN SOLID PEOPLE HAVE BEEN SKATING ON THE ROWBOAT LAKE FOR CHRISSAKE AND I HAVEN'T SEEN ANYBODY DO THAT FOR ABOUT 500 YEARS NOT SINCE I WAS A LITTLE GIRL SO YOUR QUESTION BEGAN TO REALLY BOTHER ME AND GUESS WHAT HOLDEN I ACTUALLY FOUND OUT WHAT HAPPENS TO THE DUCKS IN CENTRAL PARK WHEN EVERYTHING FREEZES OVER AND I CAN TELL YOU THAT NOBODY COMES WITH A TRUCK AND TAKES THEM AWAY TO THE ZOO OR ANYTHING MY FRIEND BILL DEGRAPHENREID FOUND THEM HE'S THIS NICE OLDER GUY WITH A BIG SHOCK OF WHITE HAIR WHO FEEDS THE DUCKS ALL YEAR I MEAN HE REALLY CARES ABOUT THE DUCKS AND HE BRINGS THEM HUGE AMOUNTS OF FOOD ALL THE TIME AND IMAGINE THIS HE ACTUALLY KNOWS THOSE DUCKS I'M NOT KIDDING IT'S ABSOLUTELY AMAZING THERE'S THIS ONE FEMALE MALLARD HE CALLS MISSY AND THERE'S ALL MISSY'S CHILDREN SHE HAD EIGHT DUCKLINGS LAST SPRING AND THERE'S MISSY'S SISTER HE CALLS HER MISSY TOO WHO WAS SLIGHTLY CRIPPLED FROM GETTING TANGLED IN A FISHING LINE AND A BIG BUNCH OF OTHER DUCKS WHEN HE CALLS MISSY MISSY ONE OF THE TWO MISSYS ALWAYS COMES ANYHOW WHEN ALL THE LAKES FROZE THIS YEAR BILL BEGAN TO WORRY ABOUT THE DUCKS SO HE LOOKED ALL OVER THE PARK FOR THEM FINALLY HE FOUND THEM ALL OF THEM HUNDREDS OF DUCKS INCLUDING MISSY AND MISSY'S SISTER THEY WERE ALL IN A SECRET PLACE JUST ABOUT THE ONLY PLACE IN ALL OF CENTRAL PARK THAT HADN'T FROZEN OVER BECAUSE THERE'S AN ACTUAL NATURAL SPRING THAT RUNS INTO IT WHILE MOST OF THE OTHER STREAMS IN THE PARK TURN ON AND OFF WITH A FAUCET FOR CHRISSAKE SO BILL'S BEEN GOING THERE JUST ABOUT EVERY DAY AND FEEDING MISSY I AND MISSY II AND ALL THE OTHER DUCKS JUST HEAPS OF FOOD EVEN THOUGH IT'S BEEN SO COLD AND THE ROADS IN THE PARK HAVE BEEN HORRIBLY ICY AND BESIDES HE'S HAD THIS PAINFUL FOOT CONDITION BONE SPURS THAT MAKES IT HARD TO WALK SO HOLDEN I'M GOING TO TELL YOU HOW TO FIND THE SECRET PLACE WHERE THE DUCKS IN CENTRAL PARK GO WHEN ALL THE LAKES ARE FROZEN OVER DO YOU KNOW WHERE BALCONY BRIDGE IS IT'S THIS STRUCTURE THAT IS ACTUALLY A PART OF THE WEST DRIVE SOMEWHERE AROUND 77TH STREET IF YOU STAND ON ITS EAST SIDE YOU GET A FANTASTIC VIEW OF THE ROWBOAT LAKE AND THE CENTRAL PARK SOUTH AND FIFTH AVENUE SKYLINES FROM ITS WEST SIDE YOU'RE FACING THE NATURAL HISTORY MUSEUM WELL ALL THE DUCKS ARE RIGHT THERE AND NOBODY HARDLY NOTICES THEM HUNDREDS OF DUCKS RIGHT UNDER OLD BALCONY BRIDGE IF YOU STAND THERE FACING FIFTH AVENUE AND THROW DOWN A LOT OF BREAD YOU'LL SEE THEM ALL RIGHT THEY'LL ALL COME OUT AND PUSH AND SHOVE AND GOBBLE UP EVERY CRUMB YOU SHOULD COME AND DO IT HOLDEN IT'LL MAKE YOU SO DAMN HAPPY IT'LL JUST ABOUT KILL YOU IT REALLY WILL MS WINN IS A WRITER IN NEW YORK SEE RELATED LETTER LETTERS TO THE EDITOR THE OLD BILTMORE GUYS DOLLS NATHAN & HOLDEN WSJ APRIL 8 1994 9403140147 YY94 MM04 9404080031 940314 EUROPEAN BANK GETS DOWN TO BUSINESS UNDER DE LAROSIERE LENDER TO EAST ESCHEWS POLITICS BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THESE DAYS THERE'S A FRESH STORY HEARTENING THE SHAREHOLDERS OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT FIFTEEN MINUTES INTO HIS FIRST DAY AS PRESIDENT IN OCTOBER JACQUES DE LAROSIERE CALLED IN HIS PREDECESSOR'S BUDGET CHIEF AND SAID HE MUST GO THE FELLOW PROTESTED THAT HE HAD FOUND ANOTHER JOB WITHIN THE BANK FIND ONE OUTSIDE THE BANK REPLIED MR DE LAROSIERE AND SO THE LAST COMPATRIOT OF JACQUES ATTALI THE EBRD'S CONTENTIOUS FOUNDER DEPARTED FOR PARIS WHERE MR ATTALI TOOK REFUGE AFTER RESIGNING FROM THE EBRD UNDER FIRE LAST SUMMER MR DE LAROSIERE IS SIGNIFICANTLY CHANGING THE EBRD CUTTING COSTS MERGING DIVISIONS AND ESPOUSING A HUMBLER NARROWER MISSION FOR THE ONCE VISIONARY INSTITUTION DE LAROSIERE HAS CLEARED UP THE MESS AND BROUGHT ORDER TO THE ORGANIZATION SAYS H ONNO RUDING A VICE CHAIRMAN AT CITIBANK AND FORMER DUTCH FINANCE MINISTER WHO ALSO WAS CONSIDERED AS A POSSIBLE SUCCESSOR TO MR ATTALI THE EBRD SAYS ONE HIGHLEVEL US OFFICIAL MAY GO FROM ONE OF THE WORSTRUN INTERNATIONAL FINANCIAL INSTITUTIONS TO ONE OF THE BESTRUN RATHER THAN PUSH A POLITICAL AGENDA MR DE LAROSIERE IS FOCUSING ON FINDING AND FUNDING PRIVATESECTOR DEALS HE HAS TARGETED FINANCIALSERVICES BUSINESSES AS A PLACE WHERE THE BANK CAN EFFICIENTLY FUNNEL MONEY TO BUDDING ENTREPRENEURS DEALS THAT DON'T INVOLVE WESTERN PARTNERS ARE BEING SOUGHT EQUITY NOT JUST LOANS IS BEING STRESSED EASTWEST TRADE WILL BE BACKED WE HAVE A CLEAR ORGANIZATION WITH OBJECTIVES AND A BUDGET THAT REFLECTS THAT SAYS A SENIOR BANKER AT THE EBRD LIKE EVERY OTHER ORGANIZATION I EVER WORKED FOR BUT THESE CHANGES WHILE APPLAUDED BY MOST RAISE QUESTIONS ABOUT WHETHER THE EBRD CAN ACCOMPLISH WHAT MANY HOPED IT WOULD BETTER RUN IT MAY BE BUT THIS RETOOLED FINANCIAL INSTITUTION WILL NEVER LIVE UP TO MR ATTALI'S ORIGINAL VISION AS THE MAJOR FORCE DRIVING THE FORMER COMMUNIST WORLD TOWARD DEMOCRACY AND FREE MARKETS THE BIGGEST SUCCESSES IN THE REGION SO FAR POLAND AND THE CZECH REPUBLIC GOT THERE WITHOUT MUCH ACCESS TO EBRD EXPERTISE OR ITS ECU 10 BILLION 115 BILLION IN CAPITAL WITH MR ATTALI GONE THE POLITICAL EDICT OF THE BANK TO FOSTER HUMAN RIGHTS AND PLURALISM HAS GONE BY THE WAYSIDE DESPITE WIDE SUPPORT FOR MR DE LAROSIERE'S FRUGALITY IN THE WAKE OF MR ATTALI'S EXTRAVAGANCE SOME WORRY HE MAY BE GOING TOO FAR THOSE AMONG THE BANK'S 700 EMPLOYEES WHO DIDN'T WALLOW IN THE ATTALI ERA OF PRIVATE PLANES AND FANCY MEALS COMPLAIN THAT THEY ARE BEING PUNISHED FOR A STYLE THEY NEVER ENJOYED A HUGE CRY OF PAIN WENT UP LAST CHRISTMAS WHEN THE BANK ANNOUNCED SALARY INCREASES WOULD BE RESTRICTED TO 15 THIS YEAR WHILE BEING FORCED TO FLY MORE IN SEARCH OF PROJECTS ON THE EASTERN FRONTIER STAFFERS ARE TRAVELING LESS COMFORTABLY FLYING THROUGH CONNECTING CITIES INSTEAD OF DIRECT BECAUSE IT'S CHEAPER AT LEAST 10 BANKERS HAVE QUIT TO JOIN INVESTMENT BANKS GIVEN ITS HISTORY IT IS LESS SURPRISING THAT EBRD IS BEING REVAMPED THAN THAT IT HAS SURVIVED AT ALL LIKE MANY REGIONAL DEVELOPMENT BANKS IT WAS BORN IN CONTROVERSY MANY WESTERN POWERS ARGUED THAT FUNDS TO HELP THE EAST COULD BE MORE EFFICIENTLY CHANNELED THROUGH EXISTING INSTITUTIONS SUCH AS THE WORLD BANK ITS INTERNATIONAL FINANCE CORP PRIVATE INVESTMENT ARM THE INTERNATIONAL MONETARY FUND AND THE EUROPEAN INVESTMENT BANK IN BRUSSELS REGIONAL DEVELOPMENT BANKS SUCH AS THE ASIAN DEVELOPMENT BANK AND THE AFRICAN DEVELOPMENT BANK HAD A HISTORY OF DIFFICULT STARTUP TIMES BUT MR ATTALI THEN CHIEF ADVISER TO FRENCH PRESIDENT FRANCOIS MITTERAND ARGUED THAT A SPECIAL SEPARATE INSTITUTION WAS NEEDED TO FOCUS ON THE REGION WHICH WAS UNDERGOING HISTORIC POLITICAL AND ECONOMIC CHANGE THE SHAREHOLDERS OF THE BANK WHICH ARE THE MAJOR WESTERN GOVERNMENTS AND THE EASTERN CLIENT STATES STILL BELIEVE THIS ALTHOUGH HE HAD NO BANKING BACKGROUND OR MANAGEMENT EXPERIENCE THEY MADE MR ATTALI THE EBRD'S FIRST PRESIDENT HE SOON FOUND HIMSELF COMPLETELY OUT OF SYNCH WITH THE BANK'S BACKERS THEY JUST WANTED TO ENCOURAGE MARKET ECONOMIES BY LENDING MONEY TO NASCENT PRIVATE ENTERPRISES MR ATTALI WANTED TO INFLUENCE HE INTERPRETED THE POLITICAL ELEMENT OF THE BANK'S CHARTER AS A MANDATE TO ACTIVELY PROMOTE DEMOCRACY AT THE EBRD MR ATTALI CREATED A POLITICAL DEPARTMENT TO IMPLEMENT HIS AGENDA I WROTE TO SOME PRIME MINISTERS AND I EVEN CALLED SOME PRESIDENTS IN ORDER TO TELL THEM I WAS VERY SHOCKED ABOUT A SPECIFIC ACTION IN TERMS OF MINORITY RIGHTS OR PRESS FREEDOMS AND THAT THESE WOULD HAVE CONSEQUENCES IN TERMS OF INVESTMENTS OF THE BANK HE SAYS MR DE LAROSIERE'S FIRST MOVE WHEN HE ARRIVED LAST FALL WAS TO DISMANTLE THIS SAME POLITICAL DEPARTMENT THAT MR ATTALI HELD DEAR THE BANK'S POLITICAL ACTIVITIES SHOULD NOT BE PROMINENT SAYS AN INTERNAL EBRD NEWSLETTER SUMMING UP THE RESULTS OF A TASK FORCE DEFINING THE BANK'S NEW MISSION THEY SHOULD BE CONFINED TO BASIC MONITORING AND THE KNOWLEDGE ABOUT POLITICAL CONDITIONS NECESSARY FOR OPERATIONAL PURPOSES IT SAYS THE BANK'S POLITICAL GOALS MAY NOW BE FULFILLED THROUGH MORAL SUASION SUGGESTS ONE DIRECTOR PROJECTS IN CROATIA ARE ON HOLD HE SAYS A LETTER GRANTING FINANCIAL CONCESSIONS TO A CENTRAL ASIAN REPUBLIC DIPLOMATICALLY SUGGESTED DEMOCRACY WAS FLAGGING WITHIN THE EBRD ITSELF THOSE WHO JOINED TO PUSH POLITICAL CHANGE NOW ARE FISH OUT OF WATER THE MERCHANT BANKERS ARE THRIVING TO EXECUTE THE BANK'S SCALEDDOWN PURPOSE MR DE LAROSIERE MERGED THE MERCHANT AND DEVELOPMENT BANKING DEPARTMENTS REORGANIZING THEM INTO COUNTRY TEAMS WITH CHIEFS RESPONSIBLE FOR DEVELOPING DEALS WITHIN THEIR TERRITORIES HE CUT OPERATING COSTS TO 8 BELOW BUDGET BY HALTING APPROVED STAFF INCREASES AND BANNING BUSINESS AND FIRSTCLASS AIR TRAVEL FUNDING FOR ROADS TELECOMMUNICATIONS POWER PLANTS AND THE LIKE SHOULD FOCUS ON PROJECTS THAT MOBILIZE PRIVATESECTOR FINANCE AND HAVE SIGNIFICANT BENEFITS SAYS AN INTERNAL BANK REPORT GOVERNMENT LOANS FOR PROJECTS THAT DON'T DIRECTLY SUPPORT PRIVATE BUSINESS SHOULD BE LEFT TO INSTITUTIONS SUCH AS THE WORLD BANK THE REPORT SAYS UTILITIES ARE A PRIORITY FOR RESTRUCTURING AND PRIVATIZATION MEANWHILE THE EBRD LAST YEAR APPROVED 91 PROJECTS FOR ECU 228 BILLION IN LOANS AND EQUITY NEARLY DOUBLE THE 51 PROJECTS APPROVED IN 1992 FOR ECU 109 BILLION THE IFC WHICH ALSO FUNDS PRIVATE ENTERPRISE APPROVED ONLY 10 EAST EUROPEAN PROJECTS IN ITS FISCAL YEAR ENDED JUNE 30 1993 DOWN FROM 13 IN FISCAL 1992 MUCH OF THIS ACTIVITY OF COURSE BEGAN UNDER MR ATTALI MOREOVER BANKERS WITHIN THE INSTITUTION SAY THAT THE FUROR OVER THE SMALL AMOUNT OF MONEY THAT THE BANK HAS ACTUALLY GIVEN OUT A TOTAL OF ECU 557 MILLION IS MISPLACED BECAUSE MANY OF THE PROJECTS APPROVED EARLIER FINALLY BEGAN OPERATING LAST YEAR THE AMOUNT THE BANK DISBURSED WENT UP FROM ECU 122 MILLION IN 1992 TO ECU 435 MILLION IN 1993 THE BANK ADDS THAT FEW OF ITS DEALS HAVE ACTUALLY GONE SOUR IT HAS WRITTEN OFF 30 OF ITS MOST VISIBLE FAILURE THE PARTNERSHIP WITH AIR FRANCE IN CZECHOSLOVAK AIRLINES BUT UNDER THE AIR FRANCE AGREEMENT THE FRENCH AIRLINE IS OBLIGATED TO REPAY THE EBRD 70 OF ITS INVESTMENT MEANWHILE THE EBRD'S INVESTMENTS IN COKOLADOVNY A CZECH CHOCOLATE AND BISCUIT COMPANY AND IN WIELKOPOLSKI BANK KREDYTOWY SA A POLISH BANK HAVE SOARED IN VALUE BANK DIRECTORS WHO REPRESENT SHAREHOLDERS SAY THAT LENDING THIS YEAR WON'T RISE AT ALL THE NUMBER OF PROJECTS WILL GROW BECAUSE THE BANK IS EMPHASIZING PRIVATE DEALS WHICH TEND TO BE SMALLER THAN GOVERNMENT PROJECTS GOVERNMENT LENDING IS BEING REDUCED STILL EAST EUROPEANS SAY THE BANK SEEMS MORE RECEPTIVE THEY ARE MUCH MORE FLEXIBLE AND MUCH MORE ORIENTED TO DO SOME BUSINESS SAYS DIMITAR GUERGIEV THE COMMERCIAL COUNSELOR AT THE BULGARIAN EMBASSY HERE WHO RECENTLY MET WITH BANK MANAGEMENT IN SOFIA TO DO DEALS BEYOND THE COUNTRIES WHICH HAVE RAPIDLY PRIVATIZED POLAND THE CZECH REPUBLIC AND HUNGARY THE EBRD'S DOZEN FIELD OFFICES ARE FLUSHING OUT PRIVATE PROJECTS INSTEAD OF ATTENDING GOVERNMENT RECEPTIONS NESTOR GAYOWSKY THE EBRD REPRESENTATIVE IN KIEV UKRAINE SAYS THE BANK IS SENDING OUT MORE MISSIONS HIS OFFICE PROBABLY WILL EXPAND PREVIOUSLY THE EBRD'S DEALS WERE CONCENTRATED ON COUNTRIES CLOSE TO WESTERN EUROPE WHERE WESTERN COMPANIES WANTED FINANCING FOR THEIR JOINT VENTURES MOST EBRD MONEY WENT TO HUNGARY AND POLAND SENIOR BANKERS SAY THIS YEAR RUSSIA WILL BE THE BIGGEST RECIPIENT UNDER MR DE LAROSIERE'S DIRECTION IT'S CLEAR THAT THE EBRD IS FAST BECOMING A TAXPAYERFUNDED MERRILL LYNCH & CO FOR THE EAST THOUGH MINUS THE BIG BONUSES AND PERKS WHILE SOME MOURN THE NEW APOLITICAL APPROACH SHAREHOLDERS ARE HAPPY BANK STAFF WHO HAVE SPENT THEIR CAREERS AS BANKERS ARE RELIEVED TOO SEE RELATED LETTER LETTERS TO THE EDITOR EUROPEAN BANK'S HUMANRIGHTS PLEDGE WSJ APRIL 8 1994 9403140027 YY94 MM04 9404070168 940407 WHO'S NEWS TRINZIC CORP TRINZIC CORP PALO ALTO CALIF THIS COMPUTERSOFTWARE MAKER SAID THAT ITS PRESIDENT FRANK L CHISHOLM 45 YEARS OLD RESIGNED TO PURSUE OTHER INTERESTS CHIEF EXECUTIVE OFFICER JIM GAGNARD 47 WILL ADD THE PRESIDENCY TO HIS DUTIES 9404070167 940407 LAIDLAW BLAMES BAD WEATHER QUAKE FOR 40 SLUMP IN 2NDQUARTER PROFIT BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL BURLINGTON ONTARIO SEVERE WINTER WEATHER AND THE LOS ANGELES EARTHQUAKE HURT LAIDLAW INC'S SCHOOL BUS OPERATIONS HELPING TO DRIVE THE COMPANY'S FISCAL SECONDQUARTER PROFIT DOWN 40 LAIDLAW SAID THE LATEST PERIOD'S RESULTS WERE HELD BACK AS WELL BY CONTINUING PROBLEMS WITH PERMITS AT ITS HAZARDOUSWASTE FACILITY IN PINEWOOD SC WHICH HAS OPERATED AT PARTIAL CAPACITY SINCE THE SUMMER ON THE POSITIVE SIDE HOWEVER THE COMPANY SAW A MARKED IMPROVEMENT IN ITS US SOLIDWASTE OPERATIONS FOLLOWING A RESTRUCTURING OF THAT DIVISION LAST YEAR LAIDLAW REPORTED PROFIT FOR THE QUARTER ENDED FEB 28 OF 17 MILLION OR SIX CENTS A SHARE DOWN FROM 281 MILLION OR 10 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 11 TO 5204 MILLION FROM 469 MILLION BOOSTED IN PART BY THE COMPANY'S RECENT ENTRY INTO THE AMBULANCE SERVICES BUSINESS LAIDLAW SAID IT LOST ABOUT 12 MILLION IN REVENUE IN THE SECOND QUARTER AS A RESULT OF SCHOOLS' CLOSING DUE TO HARSH WEATHER OR THE EARTHQUAKE THE COMPANY SAID IT EXPECTS TO RECOUP ABOUT HALF OF THE LOST INCOME LATER THIS YEAR WHEN SCHOOLS EXTEND THEIR SCHEDULES TO MAKE UP FOR LOST CLASSROOM TIME LOS ANGELES REPRESENTS LAIDLAW'S LARGEST SCHOOL BUS CONTRACT IN SOLID WASTE LAIDLAW TOOK A SPECIAL CHARGE LAST YEAR FOR CLOSING OR SELLING A NUMBER OF ITS LEAST LUCRATIVE SITES AS A RESULT REVENUE DECLINED FOR THE BUSINESS IN THE LATEST QUARTER BUT OPERATING MARGINS ROSE TO 102 FROM 76 A YEAR EARLIER A LAIDLAW SPOKESMAN SAID THERE HAD BEEN A SLIGHT FIRMING IN SOLIDWASTE PRICES IN SOME US MARKETS FOR THE FIRST SIX MONTHS OF ITS FISCAL YEAR LAIDLAW HAD PROFIT OF 55 MILLION OR 20 CENTS A SHARE DOWN FROM 77 MILLION OR 28 CENTS A SHARE A YEAR EARLIER REVENUE GAINED 86 TO 107 BILLION LAIDLAW SAID IT EXPECTS ITS RESULTS WILL IMPROVE DURING THE BALANCE OF ITS FISCAL YEAR 9404070166 940407 REVIEW & OUTLOOK EDITORIAL AN ACCOUNTABLE CONGRESS A BIPARTISAN GROUP OF MEMBERS WANT A SPECIAL SESSION NEXT MONTH THAT WOULD CONSIST SOLELY OF A TOPTOBOTTOM DEBATE ON FEDERAL SPENDING FOLLOWED BY ROLLCALL VOTES ON SPECIFIC PROGRAMS IF THEY SUCCEED CONGRESS MAY NEVER BE QUITE THE SAME AGAIN REP ROB ANDREWS A NEW JERSEY DEMOCRAT AND REP BILL ZELIFF A NEW HAMPSHIRE REPUBLICAN HAVE A TOTAL OF 214 SPONSORS ONLY FOUR SHORT OF A HOUSE MAJORITY FOR WHAT THEY CALL THE A TO Z SPENDING CUTS PLAN IT IS SIMPLE AND CLEARCUT A SPECIAL SESSION OF CONGRESS WOULD BE CONVENED IN EARLY MAY IT WOULD HOLD A MINIMUM OF 56 HOURS OF DEBATE ON SPENDING CUTS ONLY AMENDMENTS THAT REDUCE OUTLAYS WOULD BE ALLOWED IE NO TAX INCREASES EVERY PROGRAM INCLUDING ENTITLEMENTS WOULD BE SUBJECT TO REDUCTION CURRENTLY HOUSE RULES PROTECT ABOUT HALF OF THE BUDGET OR 752 BILLION FROM MOST BUDGETCUTTING AMENDMENTS ORDER A ROLL CALL VOTE ON EVERY SPENDING CUT THAT'S IT NO GIMMICKS NO BACKROOM DEALS NO COSMETIC CUTS A TO Z WOULD MEAN REAL VOTES ON REAL SPENDING CUTS OF COURSE NOTHING GUARANTEES MEMBERS WILL VOTE FOR REAL SPENDING CUTS LAST NOVEMBER WHEN REPS JOHN KASICH AND TIM PENNY WANTED TO CHOP A MERE 1 FROM THE BUDGET THEY LOST 219 TO 213 UNDER THE A TO Z PLAN ANY MEMBER FOR ONCE COULD PROPOSE AN END TO SAY MOHAIR SUBSIDIES OR PUBLIC HOUSING BOONDOGGLES MEMBERS WOULD BE FREE TO VOTE TO KEEP THEM BUT VOTERS WOULD FINALLY KNOW HOW SERIOUSLY THEIR MEMBER OF CONGRESS WANTED TO CUT SPENDING EVERYONE WOULD BE ACCOUNTABLE AND IN AN ELECTION YEAR NATURALLY THE LEADERSHIPDOMINATED RULES COMMITTEE HAS NIXED THE IDEA SPEAKER TOM FOLEY OPPOSES IT BECAUSE IT WOULDN'T RECYCLE SPENDING CUTS INTO NEW PROGRAMS HE ALSO SAYS A SPECIAL SESSION WOULD TURN INTO A THREERING CIRCUS BUT THE CURRENT BUDGET PROCESS IS A CIRCUS THAT'S LED TO FISCAL CHAOS AND DISTRUST OF CONGRESS RESPONDS REP ANDREWS REPS ANDREWS AND ZELIFF ARE ONLY FOUR SPONSORS SHORT OF A HOUSE MAJORITY ON A TO Z LAST AUGUST A MAJORITY OF MEMBERS SIGNED A LETTER TO SPEAKER FOLEY ENDORSING A SPECIAL SESSION ON SPENDING CUTS HOWEVER 28 OF THOSE MEMBERS HAVEN'T YET COSPONSORED THE BILL TO MAKE A TO Z A REALITY THEIR NAMES APPEAR NEARBY OF COURSE SHOULD A HOUSE MAJORITY SIGN UP THAT DOESN'T MEAN A TO Z WILL GO ANYWHERE THE RULES COMMITTEE CAN STILL BLOCK IT FROM A FLOOR VOTE THE ONLY WAY TO MAKE HOUSE LEADERS ACCEPT IT IS TO ALSO HAVE 218 MEMBERS SIGN A DISCHARGE PETITION TO FORCE A TO Z ONTO THE FLOOR IN THE PAST HOUSE LEADERS WERE ABLE TO USE THE SECRECY OF THE PETITION TO CONVINCE MEMBERS TO REMOVE THEIR NAMES FROM PETITIONS ALL THAT CHANGED LAST SEPTEMBER AFTER A PUBLIC OUTCRY AGAINST SECRECY GENERATED BY REP JIM INHOFE THIS NEWSPAPER AND TALK RADIO UNDER VOTER SIEGE THE HOUSE VOTED 384 TO 40 TO REQUIRE EVERY NAME ON A DISCHARGE PETITION BE MADE PUBLIC THAT MEANS VOTERS CAN KNOW WHICH MEMBERS WANT TO HAVE IT BOTH WAYS FOSTERING THE PERCEPTION THAT THEY FAVOR OPEN DEBATE BY SPONSORING A TO Z BUT NOT ANGERING THE LEADERSHIP BY SIGNING THE ALLIMPORTANT DISCHARGE PETITION SHOULD REPS ANDREWS AND ZELIFF GET A MAJORITY TO SPONSOR A TO Z THEY WILL CIRCULATE A DISCHARGE PETITION TO REQUIRE A VOTE THEY HOPE TO BEGIN ON OR ABOUT APRIL 15 THE DEADLINE FOR AMERICANS TO SEND 550 BILLION IN PERSONAL INCOME TAXES TO WASHINGTON 9404070165 940407 REX STORES' SALES ARE UP DAYTON OHIO REX STORES CORP SAID TOTAL SALES CLIMBED 30 IN MARCH TO 228 MILLION FROM 175 MILLION A YEAR AGO SALES AT STORES OPEN AT LEAST SIX QUARTERS ROSE 7 REX A CONSUMER ELECTRONICS AND APPLIANCE RETAILER ALSO SAID TOTAL SALES IN FEBRUARY AND MARCH FISCAL 1995'S FIRST TWO MONTHS INCREASED 30 TO 454 MILLION FROM 349 MILLION SALES AT STORES OPEN AT LEAST SIX QUARTERS WERE UP 6 9404070164 940407 TRANSALTA UNIT SETS CUTBACKS CALGARY ALBERTA TRANSALTA UTILITIES CORP SAID IT WILL CUT BETWEEN 250 AND 375 JOBS OR 10 TO 15 OF THE COMPANY'S STAFF STARTING NEXT MONTH THE CUTS ALONG WITH OTHER COSTTRIMMING MOVES ARE AIMED AT REDUCING THE COMPANY'S OPERATING EXPENSES BY 30 MILLION CANADIAN DOLLARS US217 MILLION A YEAR BY NEXT YEAR THE COMPANY SAID THE ELECTRIC UTILITY A UNIT OF TRANSALTA CORP CALGARY SAID THE MOVES ARE NECESSARY TO AVOID RATE INCREASES AT LEAST UNTIL 1997 9404070163 940407 MARKETING & MEDIA SCRIPPS' UNIT SETS ACCORD CINCINNATI EW SCRIPPS CO'S UNITED MEDIA UNIT SAID IT AGREED TO SELL THE COPYRIGHT SYNDICATION AND LICENSING RIGHTS FOR GARFIELD TO PAWS INC OWNED BY JIM DAVIS THE COMIC STRIP'S CREATOR TERMS WEREN'T DISCLOSED UNITED MEDIA SAID IT EXPECTS TO CLOSE THE TRANSACTION BY MAY 31 PAWS IS BASED IN ALBANY IND 9404070162 940407 WHO'S NEWS TITAN CORP TITAN CORP SAN DIEGO ROGER HAY 44 YEARS OLD WAS APPOINTED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS SUPPLIER OF HIGH TECHNOLOGY INFORMATION AND ELECTRONIC PRODUCTS AND SYSTEMS HE SUCCEEDS STEPHEN P MEYER ALSO 44 WHO WAS NAMED PRESIDENT OF THE COMPANY'S APPLIED TECHNOLOGIES GROUP 9404070161 940407 INTERNATIONAL BROWN BOVERI GETS CONTRACT ZURICH ABB ASEA BROWN BOVERI LTD A ZURICHBASED SWISSSWEDISH HEAVYENGINEERING GROUP SAID IT RECEIVED A POWER PLANT ORDER FROM IRAN VALUED AT ABOUT 150 MILLION THE ORDER PLACED BY THE TEHERAN REGIONAL ELECTRICITY CORP WITH FINANCING BY THE WORLD BANK INVOLVES THE CONVERSION OF A GAS TURBINE POWER PLANT INTO A COMBINEDCYCLE PLANT 9404070160 940407 FOREIGN AFFILIATES OF US FIRMS TO LIFT SPENDING 8 IN 1994 WASHINGTON FOREIGN AFFILIATES OF US COMPANIES PLAN TO INCREASE THEIR CAPITAL SPENDING 8 THIS YEAR TO 696 BILLION THE COMMERCE DEPARTMENT SAID THE INCREASE IS THE LARGEST SINCE AN 8 RISE IN 1990 AND FOLLOWS A 2 RISE LAST YEAR THE REPORT MEASURES PLANNED CAPITAL SPENDING BY FOREIGN AFFILIATES IN WHICH US COMPANIES HOLD MAJORITY STAKES THE INCREASES ARE CONCENTRATED IN THREE AREAS 16 BILLION IN ASIAN AND PACIFIC REGION COUNTRIES 13 BILLION IN CANADA AND 12 BILLION IN LATIN AMERICAN COUNTRIES MOST OF THE COUNTRIES WHERE LARGE INCREASES ARE PLANNED ARE EXPERIENCING ROBUST ECONOMIC GROWTH THE REPORT SAID BIG INCREASES IN MEXICO AND CANADA MAY HAVE BEEN PROMPTED BY THE APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT LAST NOVEMBER AND BY THE RECENT UPTURN IN NORTH AMERICAN SALES BY USOWNED AUTO COMPANIES THE REPORT SAID EXPENDITURES FOR EUROPE ARE EXPECTED TO BE LITTLE CHANGED IN THE MANUFACTURING INDUSTRY SPENDING IS TO RISE 8 TO 301 BILLION FOLLOWING A 3 DECREASE LAST YEAR THIS YEAR'S INCREASE EXCEEDS THE 5 INCREASE IN TOTAL DOMESTIC CAPITAL SPENDING PLANNED BY ALL US MANUFACTURING COMPANIES AS REPORTED IN A CENSUS BUREAU SURVEY TRANSPORTATION COMPANIES ARE PLANNING A 22 INCREASE IN CAPITAL SPENDING IN OTHER COUNTRIES TO 68 BILLION IN PART TO LAUNCH NEW CAR MODELS ABROAD THE TRANSPORTATION SECTOR PLANNED A 10 DECREASE IN CAPITAL SPENDING LAST YEAR PETROLEUM AFFILIATES PLAN TO INCREASE SPENDING 8 TO 208 BILLION AFTER A 5 INCREASE IN 1993 9404070159 940407 ZARING HOMES LOAN AGREEMENT CINCINNATI ZARING HOMES INC SAID IT COMPLETED A 51 MILLION LOAN AGREEMENT WITH THREE BANKS THE AGREEMENT CONSISTS OF A 30 MILLION UNSECURED REVOLVING CREDIT FACILITY AND 21 MILLION IN TERM DEBT ZARING A BUILDER OF SINGLEFAMILY HOMES SAID IT WILL USE FUNDS FROM THE REVOLVING CREDIT FACILITY FOR WORKING CAPITAL AND A PORTION OF THE FUNDS BORROWED UNDER THE TERM LOAN FOR EXPANSION ZARING ALSO SAID ITS BOARD ADOPTED A SHARE REPURCHASE PROGRAM AUTHORIZING THE COMPANY TO BUY BACK ITS COMMON SHARES ON THE OPEN MARKET 9404070158 940407 SUMMIT BANCORP ACQUISITION CHATHAM NJ SUMMIT BANCORP SAID IT AGREED TO ACQUIRE LANCASTER FINANCIAL LTD A MORTGAGE BANKING COMPANY FOR 500000 SUMMIT COMMON SHARES THE TRANSACTION WOULD BE VALUED AT ABOUT 98 MILLION BASED ON SUMMIT'S CLOSING PRICE YESTERDAY OF 19625 IN NASDAQ STOCK MARKET TRADING SUMMIT SAID THE COMBINED CLOSED MORTGAGE VOLUME FOR ITS OPERATIONS AND THOSE OF LANCASTER EXCEEDED 1 BILLION LAST YEAR SUMMIT A BANK HOLDING COMPANY WITH 43 BILLION IN ASSETS ORIGINATED AND CLOSED 605 MILLION OF RESIDENTIAL MORTGAGES IN 1993 9404070157 940407 INTERNATIONAL SPANISH NEW CAR SALES CLIMB MADRID SPANISH NEW CAR SALES ROSE 156 IN MARCH 1994 TO 85906 UNITS FROM 74306 UNITS A YEAR EARLIER SAID THE SPANISH ASSOCIATION OF CAR MAKERS OR ANFAC DESPITE THE RISE IN MARCH ANFAC SAID THIS MONTH'S SALES FIGURES ARE MORE THAN 6 LOWER THAN THE AVERAGE FOR MARCH FOR THE FIVEYEAR PERIOD OF 198993 WHICH WAS 91540 UNITS THIS MONTH'S SALES FIGURES ARE ALSO 115 BELOW THE 1992 MARCH SALES FIGURE OF 97057 UNITS ANFAC NOTED 9404070156 940407 SOUTHWEST AIRLINES' TRAFFIC RISES DALLAS SOUTHWEST AIRLINES SAID ITS MARCH TRAFFIC INCLUDING MORRIS AIR ROSE 258 FROM MARCH 1993 THE CARRIER REPORTED 19 BILLION REVENUE PASSENGER MILES FOR THE MONTH UP FROM 15 BILLION MILES FOR MARCH 1993 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 704 FROM 685 A YEAR EARLIER FOR THE YEAR TO DATE TRAFFIC ROSE 249 TO FIVE BILLION REVENUE PASSENGER MILES FROM FOUR BILLION IN 1993 LOAD FACTOR FOR THE PERIOD ALSO ROSE TO 669 FROM 66 9404070155 940407 WHO'S NEWS SAFECARD SERVICES INC SAFECARD SERVICES INC CHEYENNE WYO THOMAS F PETWAY III WAS ELECTED A DIRECTOR OF THIS CREDITCARD SERVICE CONCERN EXPANDING THE BOARD TO EIGHT MEMBERS MR PETWAY 53 YEARS OLD IS CHAIRMAN OF PRUDENTIAL NETWORK REALTY A FLORIDA REALESTATE CONCERN AND IS AN OWNER OF THE JACKSONVILLE JAGUARS A NATIONAL FOOTBALL LEAGUE FRANCHISE 9404070154 940407 MIRAGE PORTOFINO PLAN VENTURE MIAMI BEACH FLA MIRAGE RESORTS INC LAS VEGAS AND PORTOFINO GROUP WILL DEVELOP AND OPERATE A 500 MILLION HOTEL AND CASINO HERE IF FLORIDA APPROVES CASINO GAMBLING THE COMPANIES SAID IN A JOINT STATEMENT THE COMPANIES SAID THEY WILL EACH OWN 50 OF THE NEW 1000ROOM FACILITY THOMAS KRAMER WHO OWNS PORTOFINO HERE IS ONE OF THE LEADING PROPONENTS OF LEGALIZED GAMBLING IN FLORIDA 9404070153 940407 QUARTERLY MUTUAL FUNDS REVIEW BONDFUND INVESTORS HAVE ROUGH RIDE BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL THE THRASHING OF THE WORLD'S BOND MARKETS LATELY REMINDS PORTFOLIO MANAGER GEORGE KINDER OF AN OLD WALL STREET QUIP BULLS MAKE MONEY AND BEARS MAKE MONEY BUT HOGS GET SLAUGHTERED AMONG THE BIGGEST HOGS TO MEET THEIR MAKER IN THE FIRST QUARTER WERE THE BONDFUND INVESTORS CHASING HIGHER YIELDS NEVER HAVE SO MANY SMALL INVESTORS REDEPLOYED THEIR BANKDEPOSIT MONEY INTO LONGTERM OR HIGHLY SPECIALIZED BOND MUTUAL FUNDS HOPING FOR ANOTHER YEAR OF DOUBLEDIGIT RETURNS FATTENED BY DECLINING INTEREST RATES AND RARELY HAVE THE RESULTS BEEN SORRIER TAXABLEBOND MUTUAL FUNDS ENDED THE FIRST QUARTER WITH A 247 LOSS ACCORDING TO LIPPER ANALYTICAL SERVICES INC BOND INVESTORS SHOULD GET USED TO LOWER RETURNS AND MOVE MONEY INTO SHORTTERM BOND FUNDS IN EASYTOTRADE MARKETS FOR THE TIME BEINGUNLESS THEY WANT TO HAVE THEIR HEADS HANDED TO THEM AGAIN FINANCIAL PLANNERS SAY FED MOVES BOND YIELDS SOARED FOLLOWING THE FED'S DECISION TO BOOST SHORTTERM INTEREST RATES TWO TIMES IN THE QUARTER BECAUSE BOND PRICES MOVE IN THE OPPOSITE DIRECTION OF YIELDS THE PRICE SLIDE DECIMATED THE NET ASSET VALUES OF BOND FUNDS AS THE 30YEAR TREASURY YIELD JUMPED TO 708 BY THE END OF THE QUARTER FROM 642 AT THE START YIELDS ARE EVEN HIGHER NOW 724 AS OF YESTERDAY INVESTORS IN SHORTTERM INVESTMENTGRADE BOND FUNDS HAD RELATIVELY SMALL LOSSES OF 083 INVESTORS IN LONGTERM BOND FUNDS WERE IN MUCH GREATER PAIN ZEROCOUPON BOND FUNDS PLUNGED 572 IN THE QUARTER AND THOSE UNLUCKY SOULS IN BOND FUNDS SPECIALIZING IN MUNICIPAL BONDS DOWN 586 MORTGAGES DOWN 259 OR FOREIGN BONDS DOWN 587 NOW OWN PORTFOLIOS THAT SEEM TO BE BEHAVING MORE LIKE RUNAWAY MUSTANGS THAN SAVINGS VEHICLES ALL THE LIPPER FIGURES ARE TOTAL RETURNS WHICH ARE THE COMBINED EFFECT OF THE PRICE CHANGE PLUS DIVIDENDS PAID TO BONDFUND SHAREHOLDERS THANKS TO SPECTACULAR PRICE GAINS AND FALLING INTEREST RATES IN MANY LONGTERM AND FOREIGN BOND FUNDS OVER THE PAST THREE YEARS MANY INVESTORS BECAME COMPLACENT AND MADE TWO BIG MISTAKES FIRST THEY STARTED TO EXPECT PRICE GAINS FROM THEIR BOND INVESTMENTS THAT USUALLY CAN BE FOUND ONLY IN THE STOCK MARKET AND AT THE SAME TIME THAT THEY REACHED FOR BIGGER RETURNS MANY SEEMED TO HAVE FORGOTTEN THAT A BOND MUTUAL FUND IS NOT THE SAME AS A BOND THERE IS NO SET MATURITY DATE FOR A BOND FUND NO FUTURE MOMENT MONTHS OR YEARS DOWN THE ROAD WHEN THE INVESTOR CAN EXPECT TO GET OUT WITH HIS PRINCIPAL INTACT THE RESULT IS THAT THERE ARE A LOT OF INVESTORS WHO HAVE SUDDENLY DISCOVERED THAT THEY ARE IN THE WRONG KIND OF BOND FUND FOR THEIR NEEDS MANY OF THEM ARE HESITATING IN SWITCHING BACK INTO THE RIGHT KIND OF FUND FOR THOSE INVESTORS MR KINDER HAS SOME ADVICE SELL YOU SHOULD SELL ON ALL OF THIS BOND PANIC HE SAYS IT'S JUST GOING TO GET WORSE WITH THE ECONOMY HEATING UP MR KINDER SAYS THAT EVEN MANY INVESTORS WITH A LONGTERM OUTLOOK WOULD BE WISE TO MOVE THEIR MONEY INTO SHORTTERM BOND FUNDS IF THEY HAVEN'T DONE SO YET I WOULDN'T RECOMMEND A LONGTERM BOND FUND AT ALL TO ANYONE AT THIS POINT HE SAYS EVEN IF YOU WERE A LONGTERM INVESTOR WHY IS THAT ONCE THE FED STARTS TO RAISE INTEREST RATES IT TAKES A YEAR OR TWO FOR THE FULL EFFECT OF THAT RISE TO UNFOLD HE SAYS UNTIL THEN THERE IS NO SENSE IN TRYING TO BEAT THE MARKET THERE ARE TOO MANY COMPLICATED FORCES FOR AN INDIVIDUAL INVESTOR TO UNDERSTAND HE SAYS IT'S BETTER TO PUT YOUR MONEY INTO A SHORTTERM FUND FOR THE MOMENT AND WAIT FOR THE MARKET TO SETTLE DOWN BEFORE GOING INTO AN INTERMEDIATETERM BOND FUND I'D JUST WAIT UNTIL THE VOLATILITY HAS REALLY BEEN RELIEVED IN THE MARKET THESE DAYS YOU DON'T GET PAID ADEQUATELY FOR THE RISK YOU TAKE IN LONGTERM BONDS HE EXPLAINS IF PEOPLE WANT SOME RISK AND WANT A HIGHER RATE OF RETURN THEY SHOULD HAVE CASH FOR SAFETY AND ENOUGH STOCK TO HAVE A HIGHER RATE OF RETURN IN FACT THAT'S WHAT MANY OF WALL STREET'S PORTFOLIO STRATEGISTS ARE ADVISING AND WHAT A LOT OF THE BIGGEST MONEY MANAGERS ARE DOING THESE DAYS THOSE THAT MANAGE BOND FUNDS HAVE PUT AS MUCH MONEY INTO CASH AS THEY CAN THOSE THAT CAN PUT MONEY INTO STOCK HAVE DONE SO WILLIAM GROSS A MANAGING DIRECTOR AT PACIFIC INVESTMENT MANAGEMENT CO OF NEWPORT BEACH CALIF FOR EXAMPLE HAS A STEEP 15 BILLION OF HIS ASSETS OR 30 IN CASH INSTRUMENTS DON'T GET OBSESSED WITH THE QUESTION OF MARKET TIMING SAYS WILLIAM J MIKUS MANAGING DIRECTOR AT FINANCIAL DESIGN A LOS ANGELES INVESTMENT ADVISORY FIRM NOBODY CAN TIME THE MARKET YOU COULD SELL TODAY AND IT COULD RECOVER OR GO BACK UP NOBODY CAN PREDICT THE FUTURE HE SAYS THE ONLY APPROPRIATE QUESTION TO ASK IS IF YOUR BOND FUND REFLECTS YOUR INVESTMENT OBJECTIVE IF YOUR MOTHER HAS A TIME HORIZON OF FIVE YEARS AND SHE HAS A BOND FUND WITH A DURATION OF 15 YEARS SHE'S IN THE WRONG FUND HE SAYS MANY INVESTORS THOUGHT BOND FUNDS WERE SAFE AND THEY PUT THEIR MONEY IN AT THE WORST TIME SAYS MR MIKUS THE MOVE BY MANY INVESTORS FROM CDS TO LONGTERM BOND FUNDS DIDN'T MAKE A LOT OF SENSE HE ADDS INVESTORS WERE TOO QUICK TO TAKE A MOUNTAINLOAD OF RISK FOR A TEASPOON OF EXTRA RETURN HE SAYS LONGTERM BONDS DO NOT COMPENSATE FOR THE INHERENT RISKS THAT THEY CARRY AS FOR JUNK BONDS AND DEVELOPINGNATION BONDS BOTH HOT PERFORMERS IN THE PAST THREE YEARS MR MIKUS SAYS INVESTORS SHOULD ONLY PUT A SMALL PORTION OF ASSETS INTO THEM IF ANY DEVELOPINGNATION BONDS ARE HIGHLY ILLIQUID AND IT'S DIFFICULT TO QUANTIFY THE RISK HE SAYS EVEN PROFESSIONALS HAVE A HARD TIME CALCULATING THE RISK AND AS AN INDIVIDUAL YOU ARE IN A WORSE POSITION MR MIKUS ADVISES THAT INVESTORS STEER CLEAR OF MANY SPECIALIZED BOND FUNDS AND CONCENTRATE INSTEAD ON DIVERSIFIED FUNDS WITH A VARIETY OF HOLDINGS IN INVESTMENTGRADE CORPORATE BONDS AND GOVERNMENT BONDS IF YOU MADE A MISTAKE AND YOU'RE TOO LONG' WHY STAY WITH A BAD POSITION ASKS MR MIKUS BLOW IT OUT AS SOON AS POSSIBLE IT'S KIND OF LIKE GOING TO A PARTY HE SAYS IF IT'S A BAD PARTY AND YOU AREN'T HAVING A GOOD TIME DO YOU WANT TO STICK IT OUT AND HOPE IT GETS BETTER OR LEAVE RIGHT AWAY SOME WILL SAY IT'S BETTER TO STICK IT OUT HE SAYS SOME WILL SAY IF I TAKE ENOUGH LOSSES IN THIS BOND FUND AT SOME POINT IT'S GOING TO TURN AROUND' MR MIKUS SAYS A LOT OF PEOPLE MADE THAT CRUCIAL MISTAKE IN THE LATE 1970S 9404070152 940407 ECONOMY STRONG 1STQUARTER PROFITS ARE EXPECTED TO BE REPORTED BY GM FORD CHRYSLER BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE BIG THREE AUTO MAKERS ARE EXPECTED TO REPORT STRONG COMBINED FIRSTQUARTER EARNINGS OF AS MUCH AS 34 BILLION AND ANALYSTS SAY SECONDQUARTER PROFITS COULD BE EVEN STRONGER DETROIT'S HEALTHY PROFIT GAINS AND ITS PLANS FOR AN 117 INCREASE IN SECONDQUARTER PRODUCTION LARGELY REFLECT BOOMING SALES OF MINIVANS SPORTUTILITY VEHICLES AND LIGHT TRUCKS IN THE FIRST QUARTER SALES OF THOSE VEHICLES ROSE 229 TO 14 MILLION UNITS SALES OF PASSENGER CARS MEANWHILE CLIMBED 155 TO 22 MILLION VEHICLES THE AUTO INDUSTRY IS IN THE MIDST OF A POWERFUL IMPROVEMENT IN EARNINGS SAID JOHN KIRNAN AN AUTO ANALYST WITH SALOMON BROTHERS AUTO ANALYSTS SAID DETROIT'S RECOVERY WILL CONTINUE TO GATHER STEAM DESPITE RECENT JITTERS ABOUT THE ECONOMY PENTUP DEMAND RELATIVELY LOW INTEREST RATES AND STEADY INCOME GROWTH WILL KEEP THE RALLY GOING EXPERTS SAID THE FIRST QUARTER WILL BE A GREAT START TO A FABULOUS YEAR SAID JOHN CASESA AN AUTO CONSULTANT WITH WERTHEIM SCHRODER & CO THE FIRSTQUARTER EARNINGS WILL REVERSE THE BIG THREE'S COMBINED YEAREARLIER NET LOSS OF 31 BILLION WHICH REFLECTED A HUGE LOSS BY CHRYSLER CORP THIS YEAR'S BIG PROFITS COME FROM IMPROVED RETAIL SALES A DECLINE IN SALES TO RENTALCAR FLEETS AND REDUCED REBATES AND OTHER SALES INCENTIVES INDUSTRY EXPERTS SAID THE AVERAGE VEHICLE INCENTIVE FELL TO 750 IN THE 1994 FIRST QUARTER FROM 850 A YEAR EARLIER IN ADDITION GENERAL MOTORS CORP AND FORD MOTOR CO ARE PROFITING FROM A GRADUAL TURNAROUND IN THEIR EUROPEAN OPERATIONS AFTER MORE THAN A YEAR OF STEEP DECLINES IN AUTO SALES INDUSTRY EXPERTS SAID EUROPE IS SLOWLY EMERGING FROM THE DOLDRUMS ANALYSTS SAID GM EARNED AS MUCH AS 150 MILLION IN EUROPE IN THE FIRST QUARTER AND FORD EITHER BROKE EVEN OR HAD A MODEST PROFIT ANALYSTS SAY GM COULD REPORT NET INCOME OF 11 BILLION TO 147 BILLION OR 150 TO 170 A SHARE THOSE ESTIMATES INCLUDE THE 758 MILLION CHARGE THAT GM SAID RECENTLY IT WOULD TAKE IN THE FIRST QUARTER TO REFLECT THE COST OF DISABILITY AND CERTAIN OTHER EMPLOYEE BENEFITS THE RESULTS WOULD BE A BIG IMPROVEMENT FROM THE 513 MILLION OR 42 CENTS A SHARE THAT GM EARNED IN THE 1993 FIRST QUARTER IT WOULD ALSO PUT GM ON TRACK TO MEET ITS GOAL OF SHOWING A PROFIT IN NORTH AMERICAN OPERATIONS THIS YEAR FORD COULD REPORT FIRSTQUARTER EARNINGS OF BETWEEN 860 MILLION OR 170 A SHARE AND 1 BILLION OR 2 A SHARE THAT COMPARES WITH YEARBEFORE NET OF 572 MILLION OR 102 A SHARE AND CHRYSLER'S EARNINGS FOR THE FIRST QUARTER ARE EXPECTED TO RANGE BETWEEN 870 MILLION OR 220 A SHARE AND 938 MILLION OR 235 A SHARE A YEAR AGO CHRYSLER REPORTED A FIRSTQUARTER NET LOSS OF 42 BILLION OR 1281 A SHARE AFTER A BIG ONETIME CHARGE TO REFLECT FUTURE COSTS OF RETIREE MEDICAL BENEFITS ANALYSTS SAID CHRYSLER IS BENEFITING FROM THE INTRODUCTION OF NEW MODELS SUCH AS THE NEON SUBCOMPACT AND STRONG SALES OF PROFITABLE MINIVANS AND SPORT UTILITY VEHICLES SO WHAT WILL DETROIT DO WITH ITS NEWFOUND WEALTH INDUSTRY EXPERTS SAY GM WILL INJECT CASH INTO ITS UNDERFUNDED PENSION PLAN CHRYSLER AND FORD ARE EXPECTED TO RAISE THEIR DIVIDENDS THIS YEAR ALL THE AUTO MAKERS WILL STOCKPILE AMPLE CASH TO WEATHER THE NEXT INDUSTRY DOWNTURN SOMETHING THEY DIDN'T DO IN THE 1980S ANALYSTS SAID THE COMPANIES LEARNED IN THE 1980S THAT YOU DON'T GET A GREAT RETURN FROM BUYING OTHER COMPANIES SAID SCOTT MERLIS AN AUTO CONSULTANT WITH MORGAN STANLEY & CO YOU BECOME MORE COMPETITIVE WITH A CASH CUSHION THE AUTO MAKERS WILL ALSO INVEST HEAVILY IN NEW PRODUCT DEVELOPMENT MR CASESA OF WERTHEIM SCHRODER SAID GM FORD AND CHRYSLER WILL INTRODUCE A TOTAL OF 149 RESTYLED PRODUCTS BETWEEN NOW AND THE 1998 MODEL YEAR THE AUTO MAKERS FULLY EXPECT THE GOOD TIMES TO ROLL INTO THE SECOND QUARTER INDUSTRY EXECUTIVES SAID THE 10 MAJOR US AUTO MAKERS PLAN TO MANUFACTURE 1800676 CARS IN THE SECOND QUARTER UP 89 FROM YEAREARLIER LEVELS THE AUTO MAKERS PLAN TO BUILD 1457000 MINIVANS SPORT UTILITY VEHICLES AND LIGHT TRUCKS IN THE APRILTHROUGHJUNE PERIOD UP 182 FROM A YEAR AGO THE BIG THREE PLAN TO INCREASE TOTAL SECONDQUARTER PRODUCTION 117 TO 2710000 CARS AND TRUCKS PRODUCTION IS CONSISTENT WITH DEMAND SAID MR CASESA THE DOMESTICS HAVE GOTTEN OUT OF THE HABIT OF OVERPRODUCING IN HOPES THAT THE MARKET WILL MATERIALIZE TO ABSORB THE INVENTORY PRODUCTION NUMBERS FOR CHRYSLER AND GM ARE BASED ON ESTIMATES BY WARD'S AUTOMOTIVE REPORTS JAPANESE AUTO MAKERS PLAN TO BOOST SECONDQUARTER PRODUCTION AT THEIR US FACTORIES BY A COMBINED 191 INDUSTRY EXPERTS PREDICT JAPANESE AUTO MAKERS WILL BUILD MORE AND MORE VEHICLES IN THE US TO OFFSET THE NEGATIVE EFFECTS OF THE STRONG YEN TOYOTA MOTOR CORP THE LARGEST JAPANESE AUTO MAKER PLANS A 237 INCREASE IN CAR PRODUCTION AT ITS US FACILITIES HONDA MOTOR CO PLANS TO BUILD 255 MORE CARS IN THE US IN THE 1994 SECOND QUARTER THAN IT DID A YEAR EARLIER HERE ARE THE AUTO MAKERS' PLANS FOR THE SECOND QUARTER 9404070151 940407 WHO'S NEWS US LONG DISTANCE CORP US LONG DISTANCE CORP SAN ANTONIO MICHAEL E HIGGINS WAS NAMED CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT OF THIS LONGDISTANCE AND OPERATORSERVICES COMPANY HE SUCCEEDS STEPHEN DEATON WHO RESIGNED IN FEBRUARY AFTER SEVEN WEEKS ON THE JOB MR HIGGINS 44 YEARS OLD WAS MOST RECENTLY CHIEF FINANCIAL OFFICER OF CONTINENTIAL AIRLINES' SYSTEM ONE CORP UNIT 9404070150 940407 POLITICS & PEOPLE IN PRAISE OF PRESIDENTIAL PREROGATIVES BY ALBERT R HUNT TWO MONTHS AGO WHEN THE STATE DEPARTMENT ANNOUNCED THAT IT WOULD FOCUS ON THE TREATMENT OF WOMEN IN ITS YEARLY REPORT ON HUMAN RIGHTS CONDITIONS THE NEW YORK TIMES REPORTED THAT OFFICIALS DENIED THAT THE WHITE HOUSE PLAYED ANY ROLE IN THIS NEW EMPHASIS ABOUT THE SAME TIME THE JUSTICE DEPARTMENT IN A REVERSAL FROM EARLIER POSITIONS SIDED WITH THE STATE OF CALIFORNIA AND AGAINST BARCLAYS BANK IN A PENDING SUPREME COURT CASE ON HOW STATES TAX FOREIGNBASED COMPANIES THIS PROMPTED SUGGESTIONS THAT THE WHITE HOUSE WAS INTERFERING WITH THE INDEPENDENCE OF JUSTICE'S SOLICITOR GENERAL TWO WEEKS AGO WHITE HOUSE PRESS SECRETARY DEE DEE MYERS WAS BOMBARDED WITH QUESTIONS AT A PRESS BRIEFING ON THE PROPRIETY OF THE WHITE HOUSE INTERVENING IN A JUSTICE DEPARTMENT REVIEW OF A CLEMENCY REQUEST FOR JONATHAN POLLARD THE FORMER NAVAL OFFICER CONVICTED OF SPYING FOR THE ISRAELIS THESE THREE VERY DIVERSE EPISODES SHARE A COMMON THREAD THE INSANE IMPLICATION THAT THE PRESIDENT OF THE UNITED STATES IS NOT SUPPOSED TO SET THE POLICY OF HIS OWN ADMINISTRATION THIS ABSURD NOTION HAS ACCELERATED IN RECENT WEEKS IN THE FRENZY OF THE WHITEWATER SCANDAL THE PRESIDENT SHOULD NOT GET INVOLVED IN INDIVIDUAL REGULATORY MATTERS THAT'S WHY INDEPENDENT AGENCIES WITH MEMBERS APPOINTED BY THE PRESIDENT WERE CREATED BUT CERTAINLY THE PRESIDENT IS SUPPOSED TO DIRECT THE POLICY OF HIS OWN ADMINISTRATION THESE RECENT ANECDOTES ARE ILLUSTRATIVE LET'S HOPE THAT THE WHITE HOUSE PLAYED A ROLE IN DECIDING WHETHER TO EMPHASIZE THE TREATMENT OF WOMEN IN US HUMAN RIGHTS POLICIES THAT'S NOT A DECISION THAT SHOULD BE LEFT TO THE STRIPEDPANTS SET THE BARCLAYS BANK TAXATION CASE IS TOO ARCANE FOR MY FEEBLE MIND SO IT'S AN OPEN QUESTION TO ME WHETHER THE ADMINISTRATION IS CORRECT BUT IN 1992 BILL CLINTON CAMPAIGNED IN CALIFORNIA ON PRECISELY THIS POSITION RIGHT OR WRONG HE GOT A LOT MORE VOTES THAN ANY BUREAUCRATS IN THE SOLICITOR GENERAL'S OFFICE AS FOR COMPLAINTS ABOUT ANY WHITE HOUSE INVOLVEMENT IN THE POLLARD CLEMENCY CASE CRITICS OUGHT TO READ A SIMPLE DOCUMENT ARTICLE 2 OF THE CONSTITUTION IT STATES THE PRESIDENT SHALL HAVE POWER TO GRANT REPRIEVES AND PARDONS THAT RESPONSIBILITY RESTS EXCLUSIVELY WITH THE OFFICE OF PRESIDENT IN THE CURRENT CLIMATE ONE TOP WHITE HOUSE ASSISTANT SAYS WE HEAR FOOTSTEPS EVERY TIME WE GET INVOLVED IN ANYTHING CONTROVERSIAL THE PRESIDENCY FOR ALL THE DESIRABLE CHECKS AND BALANCES SHOULDN'T FUNCTION WITH SUCH INHIBITIONS THE PRESIDENT OUGHT TO BE ACTIVELY INVOLVED IN GOVERNMENTAL DECISIONS SAYS TERRY EASTLAND A CONSERVATIVE FORMER REPUBLICAN JUSTICE DEPARTMENT OFFICIAL AND AUTHOR OF AN ACCLAIMED BOOK ON THE POWER AND PREROGATIVES OF THE EXECUTIVE BRANCH THAT'S WHY WE ELECT A PRESIDENT THAT'S WHAT THE CONSTITUTION SAYS HE'S SUPPOSED TO DO TO BE SURE SOME OF THE PROBLEMS WERE INITIATED BY LIBERALS IN THE 1980S ESPECIALLY IN THE JUDICIAL AREA IN AN EFFORT TO STEM THE CONSERVATIVE REAGAN TIDE BUT TODAY SOME CONSERVATIVES SENSING WEAKNESS IN AN ACTIVIST DEMOCRATIC PRESIDENT ARE SEIZING THE MOMENT TO TRY TO HAMSTRING EXECUTIVE PREROGATIVES THIS SORT OF SITUATIONAL POSITIONING IS DANGEROUSLY SHORTSIGHTED THE MOST DRAMATIC CATALYST WAS THE STORY REVEALING THAT TOP WHITE HOUSE AIDES GEORGE STEPHANOPOULOS AND HAROLD ICKES HAD EXPRESSED DISPLEASURE TO TWO TOP TREASURY DEPARTMENT OFFICIALS OVER THE APPOINTMENT OF JAY STEPHENS A FORMER REPUBLICAN PROSECUTOR TO HANDLE SOME OF THE CIVIL MATTERS OF THE WHITEWATERTAINTED MADISON GUARANTY YET A CAREFUL LOOK AT THE PARTICULARS AND THE BROADER QUESTION ON WHETHER THE ADMINISTRATION HAS SOUGHT TO MANIPULATE THE RESOLUTION TRUST CORP TO PROTECT THE PRESIDENT SUGGESTS THERE IS LITTLE BASIS FOR SUCH OVERREACTION JAY STEPHENS IS A FORMER US ATTORNEY OF UNBRIDLED POLITICAL AMBITIONS WHO WAS FIRED BY PRESIDENT CLINTON A YEAR AGO AND THEN BLASTED THE PRESIDENT SINCE THEN HE'S BEEN AN ACTIVELY PARTISAN REPUBLICAN WHOSE CONDUCT CONCERNING THE INVESTIGATION OF REP DAN ROSTENKOWSKI WAS SO OUTRAGEOUS THAT HIS REPUBLICAN PREDECESSOR AS US ATTORNEY CALLED HIS ACTIONS UNPROFESSIONAL IT WOULD HAVE BEEN UNTHINKABLE FOR ANY WHITE HOUSE AIDE NOT TO COMPLAIN ABOUT THIS APPOINTMENT IMAGINE JOHN SUNUNU OR ED MEESE TIMIDLY ACCEPTING THE APPOINTMENT OF A FEROCIOUSLY PARTISAN LIBERAL DEMOCRAT TO INVESTIGATE MATTERS INVOLVING PRESIDENT REAGAN OR BUSH BUT THE MOST IMPORTANT POINT IS THAT PRIVATE SNIPING ASIDE THERE'S NO EVIDENCE THAT ANYTHING WAS DONE TO REMOVE MR STEPHENS IF INTEMPERATE PHONE CALLS BECOME A FELONY WE'LL HAVE TO DOUBLE THE NATIONAL DEBT TO BUILD ENOUGH NEW PRISONS AND WHILE IT WAS CLEARLY A BAD IDEA TO MAKE DEPUTY TREASURY SECRETARY ROGER ALTMAN THE ACTING HEAD OF THE RTC IT DOESN'T APPEAR THAT THIS AGENCY HAS BEEN COMPROMISED BY CLINTON POLITICAL APPOINTEES INDEED THE ADMINISTRATION NOMINATED A PROMINENT REPUBLICAN STANLEY TATE TO HEAD THE AGENCY LAST YEAR THE SELECTION WON PRAISE FROM SUCH DIVERSE EDITORIAL PAGES AS THE LIBERAL MIAMI HERALD AND CONSERVATIVE WALL STREET JOURNAL MR TATE DROPPED OUT LATE LAST YEAR WHEN SENATE BANKING COMMITTEE CHAIRMAN DON RIEGLE REFUSED TO MOVE THE NOMINATION REPUBLICAN REP JIM LEACH THE MOST SERIOUS AND LEVELHEADED REPUBLICAN WHITEWATER CRITIC HAS ALLEGED THERE HAS BEEN POLITICAL PRESSURE ON RTC INVESTIGATORS BUT LAST WEEK THE TWO TOP RTC CAREER OFFICIALS JOHN RYAN AND ELLEN KULKA WROTE A LETTER TO MR LEACH FLATLY ASSERTING THAT NO PRESSURE HAS BEEN EXERTED BY THE CLINTON ADMINISTRATION ON THE MADISON GUARANTY AND WHITEWATER INVESTIGATIONS THE BOTTOM LINE IS THAT AN ACTIVE REPUBLICAN WAS NOMINATED TO HEAD THE RTC A VEHEMENTLY PARTISAN REPUBLICAN HAS BEEN TAPPED TO PROBE PART OF THE MADISON GUARANTY SCANDAL AND THERE IS NO DOCUMENTATION OF ANY PRESSURE OR ACTION BY CLINTON APPOINTEES TO IMPEDE ANY INVESTIGATION ON WHITEWATER THERE REMAIN SOME SERIOUS UNANSWERED QUESTIONS ABOUT DEALINGS IN ARKANSAS A DECADE OR MORE AGO NOT ONLY IS THE SPECIAL COUNSEL IN ORDER BUT CONGRESS OUGHT TO SWIFTLY PASS THE INDEPENDENT COUNSEL LAW AND ROBERT FISKE OUGHT TO BE REAPPOINTED AS A TRULY INDEPENDENT COUNSEL CONGRESSIONAL HEARINGS ARE ABSOLUTELY ESSENTIAL BUT TO LEAP FROM THAT TO SUGGESTIONS THAT THIS ADMINISTRATION HAS ENGAGED IN SYSTEMATIC ABUSES OF POWER AND THAT THE AUTHORITY OF THIS EXECUTIVE OUGHT TO BE CURBED IS NONSENSE POLITICAL OPPONENTS WOULD LIKE TO USE THIS AS AN EFFORT TO PARALYZE PRESIDENT CLINTON BUT THEY WOULD DO WELL TO REMEMBER THAT'S A WEAPON THAT NOT ONLY CAN BUT INVARIABLY WILL BE TURNED ON THEM ONCE ONE OF THEIR OWN RETURNS TO THE OVAL OFFICE 9404070149 940407 QUARTERLY MUTUAL FUNDS REVIEW DEFENSIVE MISTAKES NOW CAN HURT LATER BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL THE BEST DEFENSE IS A SMART OFFENSE AFTER A ROUGH FIRST QUARTER INVESTORS ARE DUCKING FOR COVER AS THE STOCKMARKET FLAK GETS HEAVIER BUT ALL TOO OFTEN INVESTORS' EFFORTS TO MAKE A STOCK PORTFOLIO BULLETPROOF CAN BACKFIRE EXPERTS SAY INVESTORS HAVE TO BE CAREFUL NOT TO MAKE THE WRONG DEFENSIVE MOVES SAYS EARL OSBORN OF BINGHAM OSBORN & SCARBOROUGH A FINANCIAL ADVISORY FIRM IN SAN FRANCISCO IF YOU ARE GOING TO INVEST IN STOCKS HE SAYS YOU MUST PREPARE FOR THE CHANCE OF A MAJOR MARKET DOWNTURN WHICH YOU WILL NOT SEE COMING NOBODY CAN SAY FOR SURE HOW LONG THE STOCKMARKET SLIDE WILL LAST YET IT IS ALREADY CLEAR THAT THE EASY STOCKMARKET RETURNS OF RECENT YEARS ARE LIKELY TO PROVE ELUSIVE IN 1994 IN THE NEXT THREE TO FIVE YEARS I DON'T THINK PEOPLE ARE GOING TO MAKE ANYWHERE NEAR THE KIND OF MONEY THEY MADE IN THE LAST 10 YEARS MR OSBORN SAYS UNNERVED BY THIS OUTLOOK INVESTORS CAN EASILY WIND UP JUMPING OUT OF THE FRYING PAN INTO THE FIRE IN A FRANTIC EFFORT TO AVOID MAJOR LOSSES WHICH MISTAKES ARE INVESTORS MOST LIKELY TO MAKE IN TRYING TO DEFEND THEIR PORTFOLIOS AGAINST A BROAD STOCK SLUMP AND HOW CAN THEY AVOID THESE DEFENSIVE ERRORS BASED ON A SAMPLING OF STOCK STRATEGISTS MONEY MANAGERS AND MUTUALFUND ANALYSTS HERE'S A RUNDOWN OF MAJOR BLUNDERS THAT QUEASY INVESTORS SHOULD TRY TO AVOID ALLORNOTHING BETS DUMPING ALL YOUR STOCK FUNDS IS THE WORST AND THE MOST COMMON MISTAKE MADE BY INVESTORS TRYING TO BE DEFENSIVE EXPERTS SAY THE SINGLE LARGEST RISK IN INVESTING IS NOT BEING IN COMMON STOCKS THAT'S A BIGGER RISK THAN BEING IN THEM MR OSBORN SAYS MODERATION IS THE KEY TO LIGHTENING UP A PORTFOLIO'S EXPOSURE TO STOCKS MR OSBORN SAYS HE RECOMMENDS THAT INVESTORS WHO CURRENTLY HAVE 70 OF THEIR PORTFOLIOS IN STOCKS LOWER THEIR HOLDINGS TO 50 THOSE WHO HAVE 50 SHOULD GO DOWN TO 35 IF YOU ARE 30 IN EQUITIES STAY RIGHT WHERE YOU ARE AND NEVER LET YOUR PORTFOLIO DROP BELOW THAT MINIMUM HE SAYS OVERVALUING VALUE FUNDS IN 1990 MANY INDIVIDUALS SHOVED THEIR MONEY INTO SOCALLED VALUE FUNDS THE MUTUAL FUNDS THAT INVEST IN STOCKS TRADING AT RELATIVELY LOW MULTIPLES OF EARNINGS OR BOOK VALUE THE IDEA WAS THAT THESE LOWERPRICED STOCKS SHOULD HAVE THE STRONGEST RESISTANCE TO MARKET SWINGS SOUND LIKE A GOOD WAY TO BE SAFE AGAINST A BIG MARKET DECLINE WELL IN THE LAST STOCKMARKET DEBACLE IT SIMPLY DIDN'T WORK IN FACT 1990 IS A BEAUTIFUL EXAMPLE OF WHERE A GOOD THEORY HAD BAD RESULTS MR OSBORN SAYS VALUE STOCKS WENT DOWN THE FASTEST YOU JUST DON'T KNOW WHAT MARKET SEGMENT WILL COLLAPSE FAILING TO STAY DIVERSIFIED MANY INDIVIDUALS WILL TRY TO CLING TO A FEW SEGMENTS OF THE MARKET TO ESCAPE THE TERROR OF A BEARMARKET DEBACLE BUT MANY WILL HURT THEIR CHANCES OF MINIMIZING DAMAGE BY CONCENTRATING IN ONE OR TWO PARTICULAR MARKET SEGMENTS THAT THEY THINK WILL RESIST A MAJOR MARKET DOWNTURN ALTHOUGH CERTAIN STOCK GROUPS SUCH AS INSURANCE TEND TO HAVE RELATIVELY GOOD RECORDS IN DOWN MARKETS INVESTING IN A SINGLE AREA OF THE MARKET IS EXTREMELY RISKY MR OSBORN RECOMMENDS THAT INVESTORS EVENLY SPREAD THE STOCK HOLDINGS IN THEIR PORTFOLIOS AMONG FIVE DIFFERENT TYPES OF FUNDS FOREIGN VALUE GROWTH SMALLCOMPANY AND INCOMEORIENTED DODGING OLD BULLETS EVERYONE ALWAYS TRIES TO FIGHT THE LAST WAR SAYS GERALD PERRITT EDITOR AND PUBLISHER OF THE MUTUAL FUND LETTER IN CHICAGO BUT WHAT HAPPENED IN THE LAST BEAR MARKET MIGHT NOT HOLD OUT THIS TIME AROUND IN EARLY 1987 MANY ANALYSTS ADVISED INVESTORS TO GO INTO EUROPEAN STOCKS AS A GOOD DEFENSE AGAINST THE HIGH PRICES IN THE US MARKETS MR PERRITT SAYS BUT PRICES WERE JUST AS HIGH IN EUROPE AS IN THE US AND ALL THE EUROPEAN STOCKS GOT KILLED INVESTORS MIGHT REMEMBER ALL THAT AND STAY AWAY FROM EUROPEAN STOCKS NOT REALIZING THAT THE ECONOMICS ARE COMPLETELY DIFFERENT THIS TIME AROUND DESPITE THE RISE LAST YEAR EUROPEAN STOCKS ARE STILL AT A LOW LEVEL HE SAYS YOU'VE GOT A SITUATION WHERE YOU COULD DO WELL TO BE IN THESE COUNTRIES WE'RE BIG ON EUROPE RIGHT NOW THE BONDSARESAFE BLUNDER FLEEING FROM STOCK FUNDS INTO BOND MUTUAL FUNDS IS NOT A GOOD WAY TO AVOID RISK EXPERTS SAY WHY DO THEY THINK IT'S A DUBIOUS BET TO TRADE STOCKMARKET RISK FOR INTERESTRATE RISK NOW THE UNDOING OF THIS BULL MARKET IS RISING INTEREST RATES WHICH COMES FROM THE RISING RATE OF INFLATION MR PERRITT CONTENDS THE UNDOING OF THE STOCK MARKET WILL BE THE SAME UNDOING AS THE BOND MARKET'S YOU CAN RUN BUT YOU CANNOT HIDE BOND PRICES MOVE INVERSELY TO YIELDS DECLINING AS YIELDS GO UP AND AS BOND PRICES ERODE SO DOES THE VALUE OF THE SHARES INVESTORS HOLD IN BOND MUTUAL FUNDS BECAUSE THE BOND MARKET APPEARS TO BE HEADING INTO A CYCLE OF INCREASING INTEREST RATES IT CAN NO LONGER BE CONSIDERED THE CONSERVATIVE INVESTMENT WARNS CRAIG LITMAN A FUND ANALYST AT LITMAN/GREGORY & CO AN INVESTMENTADVISORY FIRM IN SAN FRANCISCO HAVING ALL YOUR MONEY IN BONDS IS STUPID MR LITMAN ARGUES EVEN IF RATES STAY IN THE SAME RANGE BOND RETURNS ARE NOT GOING TO BE THAT ATTRACTIVE A 6 OR 7 YIELD ON THE 30YEAR TREASURY BOND WON'T KEEP YOU AHEAD OF THE GAME IF INFLATION DOES HEAT UP STOCKS ARE A BETTER BET TO STAY AHEAD OF INFLATION VENERATING BEARMARKET WIZARDS THROWING ALL YOUR MONEY INTO FUNDS WITH GOOD BEARMARKET RECORDS BUT POOR OVERALL PERFORMANCE ISN'T A GOOD STRATEGY FOR THE LONG TERM TAKE MATHERS FUND IT HAD STELLAR RETURNS IN 1987 AND 1990 BUT LAGGED BEHIND THE STANDARD & POOR'S 500STOCK INDEX IN THE OTHER YEARS SINCE 1982 THROUGH YEAR END ITS 10YEAR ANNUALIZED RETURN WAS BARELY ABOVE 105 ABOUT FOUR PERCENTAGE POINTS BELOW THE MARKET'S AVERAGE ANNUAL RETURN MATHERS FUND IS MANAGED BY HENRY G VAN DER EB AN EXTREME VALUE INVESTOR WHO KEEPS MUCH OF HIS PORTFOLIO IN CASH THIS FUND MIGHT BE USED EFFECTIVELY AS A SORT OF INSURANCE POLICY OR A BALANCE ON A MOREAGGRESSIVE FUND IN A DIVERSE PORTFOLIO BUT ITS ERRATIC PERFORMANCE MAKES IT A RISKY CHOICE FOR MOST INVESTORS TYPICALLY THOSE TYPES OF FUNDS THAT ARE POSITIONED DEFENSIVELY ARE NOT GOING TO DO AS WELL ON THE UPSIDE MR LITMAN SAYS YOU HAVE TO LOOK AT THE CONSISTENCY OF PERFORMANCE SELLING ON WEAK DAYS MUTUALFUND INVESTORS ARE TOO QUICK TO SELL ON A ROTTEN DAY IN THE MARKET TRY NOT TO SELL ON A DOWN DAY WHEN IT LOOKS LIKE THE MARKETS ARE HEADING LOWER MR LITMAN SAYS I THINK ESPECIALLY WITH MUTUAL FUNDS YOU HAVE TO GIVE YOURSELF SOME BREATHING ROOM TO SIT BACK AND LOOK AT MARKETS OVER A SEVERALDAY PERIOD DON'T SCARE TOO EASILY THE STOCK MARKET SELLOFF OF THE DAY SHOULDN'T SCARE INVESTORS INTO QUICK REACTIONS MUTUALFUND INVESTORS SHOULDN'T TRY TO BE MARKET TIMERS SWITCHING QUICKLY IN AND OUT OF DIFFERENT TYPES OF FUNDS DEPENDING ON THE LATEST POLITICAL CRISIS IN A FOREIGN COUNTRY OR THE LATEST US INFLATION REPORT 9404070148 940407 LEISURE & ARTS HUNTING BAGGING A WHITETAIL LEGEND AND A NEW WORLD RECORD BY MICHAEL PEARCE BIGGAR SASKATCHEWAN MILO HANSON WAS WEARING A BROAD SMILE AS HE HURRIED A FATEFUL 50 YARDS LAST NOV 23 IT WAS MORE THAN JUST A SMILE OF SIMPLE PLEASANTNESS IT WAS A GRIN OF EXCITEMENT AND SATISFACTION FROM A BELOVED TASK WELL DONE IT WAS A BUS DRIVER WHO HAD FIRST SEEN AND REPORTED THAT A MONSTROUS WHITETAIL WAS ROAMING NEAR HERE SUBSEQUENT REPORTS OF THIS BUCKLIKENOOTHER CONTINUED TO TRICKLE INTO THE LOCAL COFFEE SHOP WHERE THE ANIMAL SOAKED UP CONVERSATION AND FLOODED THE MINDS OF LOCAL HUNTERS EVEN THOUGH THEY REALIZED THE ODDS WERE IN THE WHITETAIL'S FAVOR WHEN DEER SEASON OPENED ON NOV 15 MR HANSON AND A FEW FELLOW HUNTERS DECIDED TO FOCUS THEIR EFFORTS ON THE BUCK FEW HAD EVEN SEEN AS THEY HAVE ELSEWHERE IN THE COUNTRY THE WHITETAILS IN MR HANSON'S HUNTING GROUNDS HAVE DONE WELL THE PAST TWO DECADES FINDING DEER OR EVEN NICE BUCKS FOR THAT MATTER WASN'T HARD THAT FIRST WEEK OF HUNTING BUT THE GARGANTUAN BUCK OF THEIR QUEST PROVED ELUSIVE AS IT ALWAYS DOES FOR HUNTERS DAWN THAT TUESDAY MORNING BROUGHT WITH IT NEW HOPE AND IDEAL HUNTING CONDITIONS A WIND HAD COME UP ON MONDAY TO BLOW THE OLD DEER TRACKS SHUT AND IT HAD SNOWED A LITTLE THAT NIGHT RECALLS MR HANSON A LIFELONG SASKATCHEWAN FARMER/STOCKMAN AND AVID HUNTER FOR 32 OF HIS 48 YEARS IT WAS NICE NOT REAL COLD ABOUT 10 DEGREES SOMETIMES IT'S 30 OR 35 BELOW WHEN WE'RE OUT TWO OF MR HANSON'S FRIENDS SPOTTED THE BUCK IN THE DISTANCE EARLY THAT MORNING USING THE FRESH TRACKING SNOW AND THE COMBINED EXPERIENCE OF MORE THAN 100 DEER SEASONS THE HUNTERS DEVISED THEIR STRATEGY AND WERE ON THEIR WAY TRUE TO HIS SPECIES THE BIG WHITETAIL POSSESSED AN UNCANNY ABILITY TO FRUSTRATE THE HUNTERS THIS EVOLVED INTO SEVERAL HOURS OF CATANDMOUSE THAT LED THE SPORTSMEN ACROSS WIDEOPEN CROP FIELDS THROUGH WOOD LOTS AND DENSE THICKETS OF BRUSH POPLAR AND WILLOWS IT ENDED WHEN THE BUCK BURST FROM COVER 100 YARDS AWAY FROM WHERE MR HANSON WAS WAITING USING A VENERABLE LEVERACTION WINCHESTER THAT HAD SERVED HIM WELL THE PAST QUARTERCENTURY MR HANSON QUICKLY DROPPED THE BUCK HUSTLING TO HALVE THE DISTANCE MR HANSON ADDED ANOTHER ROUND TO ENSURE A HUMANE END EMOTIONS RANGED FROM EXCITEMENT AND RELIEF TO A LITTLE REMORSE AS HE NEARED HIS PRIZE LIKE THEY DO IN MOST SPORTSMEN BUT FROM THAT DAY ON MR HANSON WOULD NEVER AGAIN BE CONSIDERED A TYPICAL SPORTSMAN THE BUCK HE'D TAKEN WAS ANYTHING BUT TYPICAL THE INCREDIBLE HORNS CARRIED AN EVEN DOZEN TOWERING MAIN POINTS THE LONGEST SKYED TO 14 INCHES AND FIVE OTHERS WERE MORE THAN 11 INCHES AS WELL AS DEEP THE RACK WAS ALSO WIDE AND LONG THE MAIN BEAMS CARRIED MORE THAN 28 INCHES FROM WHERE THEY SPROUTED AND SWEPT FORWARD IN A 27INCHPLUS SPREAD THOUGH TAKEN IN THE HEART OF SOME OF THE WORLD'S TOP TROPHYWHITETAIL COUNTRY THE ENORMOUS RACK QUICKLY BROUGHT LOCAL HUNTERS TO MR HANSON'S FARM FOR A GLIMPSE AND TO OFFER CONGRATULATIONS WISE IN THE WAYS OF THE BOONE AND CROCKETT CLUB THE OFFICIAL MEASURERS AND RATERS OF NORTH AMERICAN BIG GAME ONE GUEST TOOK A TAPE MEASURE TO THE RACK IN A PROCESS THAT TAKES ABOUT A HALFHOUR HE MEASURED FOR TOTAL TINE POINT AND MAINBEAM LENGTH RACK MASS AND SPREAD AND THEN TOOK DEDUCTIONS FOR LACK OF SYMMETRY THE FINAL NUMBERS SURPRISED BOTH THE SCORER AND MR HANSON WE WENT INSIDE TO ADD UP THE FIGURES ON THE CALCULATOR AND HE KEPT SAYING I MUST'VE MADE SOME MISTAKE LET'S ADD THEM AGAIN' REMEMBERS MR HANSON A STOUT MAN WITH A FRIENDLY SMILE WE KEPT COMING UP WITH ABOUT 214 INCHES I THOUGHT THAT WAS VERY GOOD BUT THEN HE TOLD ME THE EXISTING WORLD RECORD WAS AROUND 205 OR 206 I WAS KIND OF SHOCKED FOR THE SAKE OF ACCURACY MR HANSON HAD THE RACK SCORED AGAIN AND THE TALLY WAS ABOUT THE SAME AFTER A MANDATORY 60DAY WAITING PERIOD THE RACK WAS SCORED AGAIN AND BLESSED WITH A TOTAL OF 213 POINTS BY A BOONE AND CROCKETT OFFICIAL THE RACK IS EXPECTED TO BE OFFICIALLY NAMED A NEW WORLD RECORD AT THE ORGANIZATION'S NEXT AWARDS BANQUET IN JUNE 1995 IT WAS SEVERAL DAYS AFTER THE PRELIMINARY MEASUREMENTS THAT MR HANSON BEGAN TO FULLY COMPREHEND HIS ACCOMPLISHMENT AT FIRST I KIND OF JUST THOUGHT OH GREAT IT LOOKS LIKE I'VE GOT THE WORLD RECORD' HE SAYS BUT THEN THE LOCAL TV STATION DID AN INTERVIEW AND SHOWED THE RACK ON THE AIR ALL HELL BROKE LOOSE AFTER THAT MR HANSON'S USUALLY QUIET PHONE BEGAN RINGING NEARLY NONSTOP WITH CALLS FROM WELLWISHING HUNTERS AND THE OUTDOOR MEDIA HIS HOMETOWN A VILLAGE OF 2500 WHOSE PREVIOUS CLAIM TO FAME WAS A MEMORABLE SIGN THAT STATES NEW YORK IS BIG BUT THIS IS BIGGAR WAS ON THE LIPS AND MINDS OF TROPHYWHITETAIL CONNOISSEURS FROM MAINE TO MONTANA EVEN THOUGH IT WAS SOMETHING WE PREDICTED COULD HAPPEN A FEW YEARS AGO IT'S THE BIGGEST STORY TO COME ALONG IN YEARS SAYS GERALD BETHGE EXECUTIVE EDITOR OF OUTDOOR LIFE MAGAZINE THE WORLD RECORD HE BROKE A WISCONSIN BUCK OF 206 WAS TAKEN BY JAMES JORDAN WAY BACK IN 1914 WE'RE TALKING ABOUT BEATING A RECORD THAT WAS NEARLY EIGHT DECADES OLD AND NOT JUST BY A LITTLE BIT THAT'S BIG ALL OF THE ATTENTION HAS INTRODUCED MR HANSON TO THOUSANDS OF NEW PEOPLE BOTH AT HOME AND ON THE ROAD HIS WAS THE MOST POPULAR HAND TO BE SHAKEN AT THE HUGE ANNUAL SHOOTING HUNTING OUTDOOR TRADE SHOW IN DALLAS IN JANUARY MANY HAVE EVEN SUGGESTED THAT HE QUIT DEER HUNTING WHILE HE'S AHEAD BUT MR HANSON WILL HAVE NONE OF THAT THOUGH HE RAISES WORLDCLASS BEEF HE HAS A SPECIAL LIKING FOR VENISON WE USUALLY MAKE SAUSAGE OUT OF MOST OF IT HE SAYS WE SMOKE OUR OWN OLIVE HIS WIFE HAS A GREAT RECIPE NO TWO BATCHES EVER SEEM TO TURN OUT EXACTLY THE SAME BUT IT'S ALWAYS GOOD AND LIKE MOST SPORTSMEN MR HANSON HEADS AFIELD EVERY FALL FOR MORE THAN JUST A SET OF HORNS FOR THE WALL AND MEAT FOR HIS FREEZER WE REALLY LOOK FORWARD TO IT EVERY YEAR OLIVE LIKES TO DEER HUNT TOO AND IT'S OUR HOLIDAY SAYS MR HANSON A MAN WHO'S NO STRANGER TO WORKING 16HOUR DAYS FOR WEEKS ON END WE ENJOY HUNTING WITH OUR FRIENDS NEIGHBORS AND FAMILY ONE GUY FROM IN TOWN TAKES ALL THREE WEEKS OF THE SEASON OFF NOT SURPRISINGLY MR HANSON CREDITS MUCH OF THEIR LOVE OF THE SPORT WITH JUST BEING OUT THERE EVEN THOUGH IT'S NOT FAR FROM HOME WE USUALLY STOP AT NOON AND BUILD A FIRE TO COOK SAUSAGE OR SOMETHING OVER MR HANSON WILL FIND PLENTY TO SMILE ABOUT IN FUTURE DEER SEASONS BUT NONE OF THOSE SMILES WILL LIKELY BE AS BIG OR AS BRIGHT AS THE ONE HE HAD ON HIS FACE WHEN HE FIRST WALKED UP TO THE BUCK THAT HAS ENGRAVED HIS NAME IN HUNTING HISTORY MR PEARCE IS AN OUTDOORS WRITER IN NEWTON KAN 9404070146 940407 AMERICAN AIRLINES TRAFFIC UP DALLAS AMERICAN AIRLINES SAID ITS MARCH TRAFFIC ROSE 1 FROM MARCH 1993 THE AMR CORP UNIT REPORTED 83 BILLION REVENUE PASSENGER MILES FOR THE MONTH UP FROM 82 BILLION FOR MARCH 1993 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE TO 641 FROM 604 A YEAR EARLIER FOR THE YEAR TO DATE TRAFFIC FELL 16 TO 223 BILLION REVENUE PASSENGER MILES FROM 227 BILLION IN 1993 LOAD FACTOR FOR THE PERIOD ROSE TO 609 FROM 58 9404070145 940407 INTUIT BUYS SOFTWARE LINE MENLO PARK CALIF INTUIT INC A MAKER OF FINANCIAL SOFTWARE FOR PERSONAL COMPUTERS SAID IT PURCHASED A RIVAL'S TAXPREPARATION SOFTWARE LINE FOR 65 MILLION IN THE LATEST SIGN OF CONSOLIDATION IN THE PC SOFTWARE INDUSTRY INTUIT SAID IT WILL DISCONTINUE THE TAXSOFTWARE PRODUCTS MARKETED BY BEST PROGRAMS INC OF RESTON VA AND OFFER TO SELL ITS OWN PROGRAMS TO BEST'S CUSTOMERS INTUIT WHICH ALSO IS ACQUIRING A BEST CUSTOMERSERVICE CENTER SAID IT MIGHT MAKE ADDITIONAL PAYMENTS TO BEST IN 1995 AND 1996 BASED ON ACHIEVING CERTAIN FINANCIAL GOALS 9404070144 940407 CANADIAN BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SOLD AT AN AUCTION YESTERDAY TWO BILLION CANADIAN DOLLARS US145 BILLION OF 775 BONDS DUE SEPT 1 1999 AT AN AVERAGE YIELD OF 7885 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9404070143 940407 WOLOHAN LUMBER SALES CLIMB SAGINAW MICH WOLOHAN LUMBER CO A LUMBER AND BUILDING MATERIALS RETAILER SAID MARCH SALES ROSE 38 TO 322 MILLION FROM 234 MILLION A YEAR EARLIER SALES AT STORES OPEN ONE YEAR OR LONGER CLIMBED 30 FOR THE FIRST THREE MONTHS OF 1993 SALES ROSE 193 TO 765 MILLION FROM 641 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST ONE YEAR JUMPED 15 9404070142 940407 DELL COMPUTER TO EXPAND PLANT AUSTIN TEXAS DELL COMPUTER CORP SAID IT PLANS TO DOUBLE THE SIZE OF ITS LIMERICK IRELAND MANUFACTURING PLANT AND HIRE AN ADDITIONAL 400 PEOPLE THE MAILORDER PERSONAL COMPUTER VENDOR SAID THE PLANNED EXPANSION EXPECTED TO BEGIN IMMEDIATELY WILL ADD 140000 SQUARE FEET OF MANUFACTURING SPACE TO THE PLANT THE COMPANY'S 136000SQUAREFOOT LIMERICK FACILITY OPENED IN 1990 EMPLOYS ABOUT 380 PEOPLE 9404070141 940407 TECHNOLOGY & HEALTH HYBRIDON IS GIVEN CLEARANCE TO TEST NEW AIDS DRUG BY TOM KNUDSON STAFF REPORTER OF THE WALL STREET JOURNAL WORCESTER MASS HYBRIDON INC SAID IT RECEIVED APPROVAL TO BEGIN THE FIRST US CLINICAL TEST OF A NEW GENETICALLY ENGINEERED DRUG IN AIDS PATIENTS THE DRUG GEM 91 IS PART OF THE EMERGING ANTISENSE FIELD OF GENE MANIPULATION ANTISENSE DRUGS FIGHT ILLNESS BY STOPPING THE MANUFACTURE OF VIRAL PROTEINS ASSOCIATED WITH DISEASE IN OCTOBER THE FIRSTEVER CLINICAL TRIALS OF GEM 91 BEGAN IN FRANCE AND INVOLVED 23 HIVPOSITIVE PATIENTS THE DRUG WAS WELL TOLERATED WITH NO CLINICALLY SIGNIFICANT SIDE EFFECTS THE COMPANY SAID IN A PRESS STATEMENT NO ONE IS CALLING GEM 91 A CURE BUT LABORATORY TESTS HAVE SHOWN THE DRUG BLOCKS THE REPRODUCTION OF THE HIV VIRUS SAYS PAUL SCHECHTER SENIOR VICE PRESIDENT OF DRUG DEVELOPMENT AT HYBRIDON WHICH IS A PRIVATELY HELD COMPANY WE CANNOT SAY IT KILLS THE VIRUS MR SCHECHTER SAYS BUT IT ARRESTS THE VIRUS IT STOPS THE REPLICATION OF THE VIRUS BUT MANY ARE SKEPTICAL ANTISENSE TECHNOLOGY IS PROMISING BUT THERE HAVE BEEN TOO MANY INSTANCES WHERE A PROMISING TREATMENT BASED ON PRECLINICAL DATA DOES NOT DO WELL IN HUMANS SAYS MICHAEL P WALSH AN ANALYST WITH ROBERTSON STEPHENS IN SAN FRANCISCO GEM 91 IS A NEW APPROACH THAT'S NEVER BEEN TRIED BEFORE FOR THIS DISEASE MR WALSH SAYS IS IT WORTHY OF TESTING YES IT IS BUT I'LL REMAIN SKEPTICAL UNTIL I SEE SOME HUMAN CLINICAL DATA GEM 91 IS EMERGING AS OTHER AIDS TREATMENTS HAVE FALTERED ONE PROBLEM IS THE ABILITY OF THE HIV VIRUS TO MUTATE AND DEVELOP RESISTANCE TO TREATMENT BUT GEM 91 IS LESS LIKELY TO ENCOUNTER RESISTANCE PROBLEMS BECAUSE IT HAS MULTIPLE TARGETS IN THE AIDS VIRUS MR SCHECHTER SAYS THE CLINICAL TRIAL WHICH HAS BEEN APPROVED BY THE US FOOD AND DRUG ADMINISTRATION IS SCHEDULED TO BEGIN WITHIN TWO WEEKS AT THE UNIVERSITY OF ALABAMA ACCORDING TO MR SCHECHTER IT WILL INVOLVE SIX PATIENTS THE PURPOSE IS TO ASSESS THE DRUG'S SAFETY AND HOW IT WORKS IN THE BODY MR SCHECHTER SAYS IF SUCCESSFUL FURTHER TESTS WOULD EXAMINE THE DRUG'S AIDSFIGHTING CAPABILITIES THERE ARE A LOT OF QUESTIONS IN INVESTORS' MINDS ABOUT THE FUNDAMENTALS OF THE TECHNOLOGY SAYS GREGORY B BROWN A PHYSICIAN AND BIOTECHNOLOGY ANALYST WITH VECTOR SECURITIES INTERNATIONAL IN DEERFIELD ILL BUT DR BROWN ADDS THAT GEM 91 HAS REAL POTENTIAL IN NATIONAL INSTITUTES OF HEALTH SCREENS IT HAS NOT DEMONSTRATED ANY RESISTANCE IT'S GOING INTO HUMANS NOW THAT'S KIND OF THE BLACK BOX 9404070140 940407 LEGAL BEAT AUTHOR WHO SUED OVER SCORNFUL REVIEW IS NOW SCORNED BY THE PUBLISHING WORLD BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL TOURING THE COUNTRY IN AUGUST 1989 TO PROMOTE HIS LATEST BOOK DAN E MOLDEA HAD DREAMS OF A BESTSELLER THEN DISASTER STRUCK THE INFLUENTIAL NEW YORK TIMES BOOK REVIEW SLAMMED HIS EXPOSE INTERFERENCE HOW ORGANIZED CRIME INFLUENCES PROFESSIONAL FOOTBALL SAYING IT WAS RIDDLED WITH UNFOUNDED INSINUATIONS AND SLOPPY JOURNALISM MR MOLDEA WAS OUTRAGED CLAIMING THAT IT WAS THE TIMES REVIEW THAT CONTAINED ERRORS HE DEMANDED A CORRECTION OR AT LEAST THE PUBLICATION OF A LETTER TO THE EDITOR WHEN THE PAPER REFUSED HE DID THE UNTHINKABLE HE SUED THE TIMES OVER A HARSH BOOK REVIEW MR MOLDEA WAS IMMEDIATELY SCORNED BY MANY IN THE JOURNALISM AND PUBLISHING WORLDS HE ISN'T AFTER ALL THE FIRST AUTHOR TO BE PUBLICLY SKEWERED AND HIS LIBEL SUIT WAS THROWN OUT BY A FEDERAL JUDGE IN WASHINGTON DC BUT IN FEBRUARY A US APPEALS COURT PANEL REINSTATED THE SUIT SAYING CRITICISM LITERARY OR OTHERWISE ISN'T INSULATED FROM LIBEL ACTIONS THE MEDIA ARE UP IN ARMS OVER THE PANEL'S DECISION POINTING TO A DISSENTING JUDGE'S ASSERTION THAT IT COULD OPEN UP THE ENTIRE ARENA OF ARTISTIC CRITICISM TO MASS DEFAMATION SUITS UNTIL RECENTLY COURTS MADE A SHARP DISTINCTION BETWEEN ASSERTIONS OF FACT AND OPINION AND OPINION WAS COMPLETELY SHIELDED FROM LIBEL SUITS BUT IN 1990 THE SUPREME COURT REJECTED THE DICHOTOMY SAYING THAT STATEMENTS OF OPINION CAN BE LIBELOUS IF THEY IMPLY FALSE FACTS THE APPEALS COURT'S MOLDEA RULING IS BUILT ON THE 1990 PRECEDENT IF THE APPEALS COURT DECISION IS UPHELD PREDICTS CARLIN ROMANO THE PHILADELPHIA INQUIRER'S LITERARY CRITIC TOUGH REVIEWS WILL BE DILUTED REVIEWERS ALSO FEAR THAT IF TYPICALLY UNPROFITABLE BOOK SECTIONS ARE EXPOSED TO NEW LEGAL LIABILITY MANY PAPERS WILL STOP PUBLISHING THEM MEANWHILE PUBLISHERS ARE ALARMED BY ANYTHING THAT MIGHT THREATEN BOOK SECTIONS BECAUSE REVIEWS EVEN SCATHING ONES ARE A PRIME MEANS OF PROMOTION ESPECIALLY FOR AUTHORS WHO AREN'T ALREADY FAMOUS I'M SPEECHLESS SAYS JANE ISAY PUBLISHER OF THE GOSSET BOOKS IMPRINT AT PUTNAM PUBLISHING GROUP INC PRINT REVIEWS ARE THE KEY TO THE PUBLICITY OF SERIOUS BOOKS SOME JOURNALISTS AND FIRST AMENDMENT BUFFS SEE MR MOLDEA AS A TRAITOR FOR DAN MOLDEA AN INVESTIGATIVE JOURNALIST WHO HAS BEEN THE BENEFICIARY OF LIBELDEFENSE LAW TO TURN AROUND AND FILE A LIBEL SUIT IS UNCONSCIONABLE SAYS JANE KIRTLEY EXECUTIVE DIRECTOR OF THE REPORTERS COMMITTEE FOR FREEDOM OF THE PRESS DOW JONES & CO PUBLISHER OF THIS NEWSPAPER HAS JOINED A BRIEF BACKING THE TIMES'S REQUEST FOR A HEARING BY THE FULL APPEALS COURT MR MOLDEA ARGUES THAT BY IMPUGNING HIS CREDIBILITY THE TIMES HURT NOT JUST HIS BOOK BUT ALSO HIS CAREER AS A FREELANCE INVESTIGATIVE JOURNALIST TV PRODUCERS STOPPED CALLING PUBLISHERS FOR A TIME WOULDN'T EVEN NIBBLE AT NEW BOOK PROPOSALS AND LECTURE INVITATIONS DRIED UP I FELT DESTROYED HE SAYS THE AUTHOR OF THREE EARLIER BOOKS ON ORGANIZED CRIME THE 44YEAROLD MR MOLDEA WAS THRILLED WHEN ADVANCE COPIES OF INTERFERENCE LED TO APPEARANCES ON NATIONAL TV INCLUDING ABC'S NIGHTLINE AND GOOD MORNING AMERICA BUT IN EARLY SEPTEMBER JUST AS THE 1989 FOOTBALL SEASON WAS STARTING THE TIMES LANDED A POWERFUL BLOW CONCEDING THAT THERE WAS SOME REALLY HOT STUFF IN INTERFERENCE THE REVIEWER TIMES SPORTSWRITER GERALD ESKENAZI WROTE BUT THERE IS TOO MUCH SLOPPY JOURNALISM TO TRUST THE BULK OF THIS BOOK'S 512 PAGES HE CITED MISSPELLED NAMES AND A SERIES OF WHAT HE PRESENTED AS BUNGLED ANECDOTES THREE NAMES WERE MISSPELLED MR MOLDEA CONCEDES BUT HE INSISTS THAT THE 700WORD REVIEW OTHERWISE MISPORTRAYED PASSAGES FROM HIS BOOK FOR EXAMPLE THE REVIEW ASSERTED THAT INTERFERENCE INACCURATELY DEPICTED A PREGAME MEETING BETWEEN FORMER NEW YORK JET JOE NAMATH AND AN OPPOSING PLAYER AS SINISTER MR MOLDEA ARGUES THAT HIS BOOK PLAINLY DESCRIBED THE MEETING AS INNOCENT THE TIMES REVIEWER DIDN'T RETURN CALLS SEEKING COMMENT THE PAPER'S ATTORNEYS SAY THE REVIEW WASN'T LIBELOUS OTHER PRINT CRITIQUES OF INTERFERENCE WERE MIXED THE WASHINGTON POST PANNED IT BUT PRINTED MR MOLDEA'S LETTER TO THE EDITOR THE LOS ANGELES TIMES COMPARED THE BOOK TO A HARDNOSED FULLBACK GRACELESSLY WRITTEN BUT PACKED WITH NAMES DATES AND PLACES HITTING THE HOLES UNTIL THE DEFENSE ONE'S INCREDULITY GIVES WAY BASED ON AN ADVANCE COPY OF INTERFERENCE INDEPENDENT PRODUCER MARNIE INSKIP WAS ASSIGNED TO DO A SEGMENT ON MR MOLDEA BY FOXTV AFTER THE TIMES REVIEW APPEARED FOX OFFICIALS CALLED HER IN POINTED TO A COPY OF THE REVIEW AND DEMANDED WHAT'S THIS MS INSKIP SAYS THE SEGMENT WAS CANCELED WHILE ALARMED BY THE APPEALS COURT RULING THE PHILADELPHIA INQUIRER'S MR ROMANO SYMPATHIZES WITH MR MOLDEA'S PREDICAMENT HE HAS A POINT MR ROMANO SAYS THAT A DEVASTATING REVIEW IN THE NEW YORK TIMES BOOK REVIEW SERIOUSLY HURTS THE COMMERCIAL PROSPECTS OF A BOOK MR ROMANO ADDS THAT THE WHOLE PROBLEM COULD HAVE BEEN AVOIDED IF THE TIMES HAD BEEN MORE GENEROUS IN ALLOWING MOLDEA TO EXPRESS HIS DISSATISFACTION SALES OF INTERFERENCE TOPPED OUT AT 21000 AND AS BOOKSTORES BEGAN RETURNING THOUSANDS OF COPIES MR MOLDEA SUED THE TIMES IN AUGUST 1990 INITIALLY MR MOLDEA'S SUIT COMPOUNDED HIS PROBLEMS FOR THE FIRST TIME IN HIS CAREER HE COULDN'T GET EVEN A SINGLE OFFER ON HIS BOOK PROPOSALS NEW YORK AGENT FRANK WEIMANN TRIED TO PEDDLE AN ASTOLDTO MEMOIR OF A FORMER US INTELLIGENCE AGENT WITH MR MOLDEA AS THE WRITER BUT PUBLISHERS' ATTITUDES APPEARED TO BE 'IF THIS GUY IS GOING TO SUE THE NEW YORK TIMES WHAT KIND OF TROUBLE WILL THAT GET US INTO' SAYS MR WEIMANN MR MOLDEA SAYS THAT BY 1991 HIS ANNUAL INCOME FROM LECTURING AND PUBLISHING UNDER HIS OWN NAME HAD DWINDLED TO 2800 DOWN FROM 59000 IN 1988 UNMARRIED HE KEPT FOOD ON THE TABLE BY GHOSTWRITING DOING SOME PRIVATEEYE WORK AND SERVING AS AN EXPERT WITNESS ON THE MOB LATELY HIS LUCK HAS TURNED A BIT LAST JULY HE GOT A 75000 CONTRACT WITH NORTON & CO TO WRITE A BOOK ABOUT THE KILLING OF ROBERT KENNEDY THEN THERE WAS THE 21 DECISION BY THE APPEALS PANEL THE PANEL MAJORITY FOUND THAT SOME OF THE TIMES'S CHARACTERIZATIONS OF INTERFERENCE WERE SUFFICIENTLY FACTUAL AS OPPOSED TO BEING UNVERIFIABLE OPINION TO ALLOW A JURY TO FIND THEM FALSE THE PANEL MAJORITY DISMISSED SOME OTHER SPECIFIC OBJECTIONS RAISED BY MR MOLDEA BUT SAID THE FACT THAT THE REVIEW LABELED THE AUTHOR SLOPPY WAS COMPARABLE TO PUBLICLY BRANDING A BRAIN SURGEON CLUMSY PUBLISHERS NOT TO MENTION BOOK REVIEWERS ARE CLOSELY WATCHING APPEALS TO THE RULING IN ADDITION TO ITS PENDING REQUEST FOR A NEW HEARING BY THE FULL 11MEMBER APPEALS COURT THE TIMES COULD ALSO APPEAL TO THE SUPREME COURT SAYS MR MOLDEA WE STILL HAVE A LONG WAY TO GO SO MANY NEW YORKERS AVOID JURY DUTY OR ARE SHABBILY TREATED BY LAWYERS JUDGES AND CLERKS WHEN THEY DO SHOW UP THAT THE SYSTEM IS IN CRISIS THE STATE'S CHIEF JUDGE SAID TO MAKE SURE MORE POTENTIAL JURORS DO APPEAR IN COURT A STATE JURYREFORM PANEL CREATED BY CHIEF JUDGE JUDITH S KAYE RECOMMENDED CHANGES IN LAWS AND PROCEDURES THAT COULD DOUBLE OR EVEN TRIPLE THE NUMBER OF PEOPLE CALLED ONE SUCH PROPOSAL WHICH NEEDS STATE LEGISLATIVE APPROVAL ABOLISHES THE 23 OCCUPATIONAL EXEMPTIONS THAT ALLOW DOCTORS LAWYERS AND EVEN PHYSICAL THERAPISTS TO SKIP JURY DUTY FEW STATES HAVE NEARLY SO MANY EXEMPTIONS THE PANEL ALSO WANTS TO ELIMINATE NEW YORK'S UNIQUE SYSTEM OF DRAWING JURORS FROM A SPECIAL LIST THAT INCLUDES AT MOST ONLY HALF OF ALL PEOPLE WHO ARE LEGALLY ELIGIBLE THE LIST IS REPLENISHED ONLY WHEN SOMEBODY ON IT DIES MOVES AWAY OR OTHERWISE BECOME DISQUALIFIED THE PANEL HEADED BY COLLEEN MCMAHON A PARTNER AT THE NEW YORK LAW FIRM PAUL WEISS RIFKIND WHARTON & GARRISON ALSO HOPES TO ADD WELFARE RECIPIENTS TO THE LIST SOMETHING OTHER STATES APPARENTLY HAVEN'T DONE TO MAKE JURY DUTY BRIEFER MS MCMAHON WANTS TO REQUIRE ONLY ONE DAY OF SERVICE FROM PEOPLE WHO AREN'T SELECTED FOR A TRIAL A SYSTEM ALREADY USED IN MANY OTHER PLACES SOME NEW YORK JURORS CURRENTLY SERVE TWO WEEKS AND THEIR LEADING COMPLAINT IS THAT THEY MUST SIT AROUND SO MUCH TO MAKE JURY DUTY MORE PLEASANT JUDGE KAYE HAS ALREADY LAUNCHED A PROGRAM TO CLEAN UP DECREPIT WAITING ROOMS AND GIVE CIVILITY TRAINING TO COURT STAFF OTHER PROPOSED REFORMS INCLUDE PAYING JURORS MORE MONEY PREVENTING LAWYERS FROM REJECTING SO MANY JURORS THROUGH SOCALLED PEREMPTORY CHALLENGES AND ENCOURAGING LITIGANTS TO SETTLE CASES BEFORE A JURY IS PICKED SOME OF THE PROPOSALS CAN BE IMPLEMENTED IMMEDIATELY BY COURT RULE BUT THE CHIEF JUDGE IS TAKING COMMENTS FROM THE PUBLIC FOR 90 DAYS OTHER PROPOSALS NEED LAWMAKERS' APPROVAL PREVIOUS ATTEMPTS TO FIX NEW YORK'S JURY SYSTEM HAVE FLOUNDERED LEGISLATION TO CUT BACK ON OCCUPATIONAL EXEMPTIONS FOR INSTANCE HAS REPEATEDLY FAILED YESTERDAY THE NEW YORK STATE TRIAL LAWYERS ASSOCIATION QUICKLY ANNOUNCED ITS OPPOSITION TO A PROPOSED 1000 JURY TAX THAT LITIGANTS WOULD JOINTLY PAY TO COVER THE COURT'S COSTS OF CHOOSING A JURY OTHER STATES ALSO ARE LOOKING AT REFORMING THEIR JURY SYSTEMS SAID THOMAS MUNSTERMAN WHO STUDIES JURIES AT THE NATIONAL CENTER FOR STATE COURTS WILLIAMSBURG VA NOT IN SUCH A BIG WAY HE SAID BUT THEN HOW DO I SAY THIS OTHER STATES HAVEN'T HAD AS FAR TO GO NOTED A SETTLEMENT HAS BEEN REACHED IN THE CASE OF THE LATE NELENE FOX WHOSE FAMILY WON AN 89 MILLION JURY VERDICT IN A SUIT AGAINST THE HEALTH NET HEALTHMAINTENANCE ORGANIZATION FOR REFUSING TO COVER A BONEMARROW TRANSPLANT TO TREAT HER BREAST CANCER POSTTRIAL MOTIONS IN THE CASE BELIEVED TO BE THE FIRST INVOLVING THE ISSUE TO BE TRIED BY A JURY HAD BEGUN EARLIER THIS WEEK TERMS OF THE SETTLEMENT WEREN'T DISCLOSED HEALTH NET IS A UNIT OF HEALTH SYSTEMS INTERNATIONAL INC JUNDA WOO CONTRIBUTED TO THIS COLUMN 9404070139 940407 ECONOMY US VEHICLE SALES ROSE 20 IN MARCH BUT RAPID PACE ISN'T SEEN CONTINUING BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT SALES OF NEW CARS AND LIGHT TRUCKS BOOMED IN MARCH RISING 20 FROM A YEAR EARLIER AND HITTING A SEASONALLY ADJUSTED ANNUAL RATE OF 159 MILLION UNITS BUT SALES WERE SO HOT THAT SOME ANALYSTS PREDICTED A MARGINAL DROPOFF IN APRIL AND MAY IF YOU'RE IN THE AUTO BUSINESS HAPPY DAYS ARE HERE AGAIN SAID CHRIS CEDERGREN A PRODUCT ANALYST WITH AUTOPACIFIC GROUP INC A CALIFORNIA RESEARCH CONCERN WE'RE ON AN INCREDIBLE TRAJECTORY SAID DAVID BRADLEY AN ANALYST WITH JP MORGAN SECURITIES INC ALL TOGETHER CAR MAKERS SOLD 1446120 DOMESTICALLY MADE AND IMPORTED LIGHT CARS AND TRUCKS IN THE US IN MARCH THE ANNUALIZED SALES PACE WAS UP SHARPLY FROM THE INDUSTRY'S 151MILLIONVEHICLE AVERAGE PACE OF THE PREVIOUS THREE MONTHS IN MARCH 1993 VEHICLES WERE SELLING AT A RATE OF 133 MILLION A YEAR THE SALES SURGE PRODUCED RECORDS THROUGHOUT THE INDUSTRY CHRYSLER CORP REPORTED ITS HIGHEST VEHICLE SALES TOTAL FOR A SINGLE MONTH SINCE IT BEGAN MAKING CARS 69 YEARS AGO FORD MOTOR CO AND GENERAL MOTORS CORP BOTH REPORTED HITTING A RECORD FOR MONTHLY TRUCK SALES MITSUBISHI MOTOR CORP'S SALES SURGED 741 THIS WAS THE INDUSTRY'S BEST MONTH SINCE THE PEAK YEAR OF 1988 SAID ROBERT L REWEY FORD'S VICE PRESIDENT FOR MARKETING AND SALES THE MARCH SALES REFLECTED THE RELEASE OF DEMAND THAT HAD BEEN PENT UP DURING THE WINTER MONTHS AND RISING CONSUMER CONFIDENCE IN THE STRENGTHENING ECONOMY ANALYSTS SAID RISING INTEREST RATES AREN'T EXPECTED TO HAVE MUCH IMPACT ON STRONG AUTO SALES EXECUTIVES AND ANALYSTS SAID NONETHELESS THE TORRID PACE ISN'T LIKELY TO CONTINUE IT'S GOING TO TRAIL OFF A BIT SAID MR BRADLEY THE JP MORGAN ANALYST MARCH RESULTS WERE EXAGGERATED BY HEAVY WINTER SNOWS WHICH PUSHED SOME BUYERS OUT OF JANUARY AND FEBRUARY ANALYSTS SAID MOREOVER HEAVY SPRING PROMOTIONS HAD THE EFFECT OF LURING SOME CUSTOMERS TO BUY IN MARCH RATHER THAN WAIT UNTIL APRIL OR MAY THE MARKET OVERPERFORMED SAID MR CEDERGREN OF AUTOPACIFIC EVEN THOUGH SALES FROM THE BIG THREE AUTO MAKERS SURGED THE DETROIT COMPANIES' SHARE OF THE US MARKET DROPPED TO 734 FROM 755 A YEAR EARLIER LARGELY BECAUSE BOTH GM AND FORD WERE HURT BY CAPACITY CONSTRAINTS AND MODEL CHANGEOVERS FORD SAW THE STEEPEST SHARE LOSS DOWN TO 241 FROM 255 SALES OF FORD'S TEMPO AND FESTIVA MODELS WHICH ARE BEING PHASED OUT WERE DOWN SHARPLY WHILE SALES OF THE NEW WINDSTAR MINIVAN AND SUCH FORTHCOMING MODELS AS THE CONTOUR THE TEMPO'S REPLACEMENT HAVE YET TO KICK IN WHAT'S MORE FORD HAS NOT YET IMPLEMENTED PLANS TO EXPAND CAPACITY OF ITS HOT SELLING EXPLORER SPORTUTILITY VEHICLE AND PICKUPS FORD ALSO REPORTED A CONTINUING SHIFT FROM FLEET SALES TOWARD MORE PROFITABLE RETAIL CAR SALES HEAVY LOWPROFIT FLEET SALES IN THE PAST INFLATED BIG THREE VOLUMES AND MARKET SHARE OVERALL FORD'S CAR SALES WERE UP ONLY 96 FORD SAID BUT THAT INCREASE INCLUDED A 23 SURGE IN RETAIL CAR SALES PARTLY OFFSET BY A 9 DECLINE IN THE FLEET MARKET GM WHICH LOST A POINT OF MARKET SHARE TO 334 OF THE MARKET REPORTED SIMILAR PROBLEMS WITH MODEL CHANGEOVERS AND A SHIFT FROM FLEET TO RETAIL GM HAS STOPPED PRODUCTION OF THE CHEVROLET LUMINA AS IT CHANGES OVER FOR A NEW MODEL AND THE DROP IN THAT VEHICLE ALONE TO 7127 CARS FROM 20325 CARS A YEAR EARLIER COULD ACCOUNT FOR THE AUTO MAKER'S SHARE LOSS STRONG DEMAND FOR THE MONTH FAILED TO LIFT ALL OF GM'S DIVISIONS EQUALLY WHILE PONTIAC SAW A 25 SURGE IN CAR SALES SATURN REPORTED ONLY A 6 JUMP AND CADILLAC INCREASED BY 2 J MICHAEL LOSH GM'S GROUP VICE PRESIDENT FOR SALES AND MARKETING SAID THOSE FIGURES PARTLY REFLECT A CONTINUING SHIFT AWAY FROM FLEET SALES HE SAID GM'S RETAIL SALES WERE UP 19 AND FLEET SALES WERE UP ONLY 4 TOTAL GM VEHICLE SALES ROSE 164 CHRYSLER'S MARKET SHARE INCREASED A MODERATE 03 POINT TO 159 DESPITE THE AUTO MAKER CHALKING UP WHAT IT SAID WAS THE STRONGEST MONTH IN ITS HISTORY CHRYSLER'S SALES HIT 230386 CARS AND TRUCKS UP FROM THE PREVIOUS RECORD SET IN MARCH 1988 OF 223787 VEHICLES THE COMPANY SAW HOT DEMAND FOR SUCH NEW PRODUCTS AS THE NEON SMALL CAR AND RAM PICKUP TOYOTA MOTOR CORP REPORTED ITS BEST MARCH EVER EVEN THOUGH SALES FOR ITS LEXUS LUXURY CAR BRAND INCREASED A MODERATE 14 THE BULK OF TOYOTA'S 162 SURGE CAME FROM TOYOTA CARS SUCH AS THE CAMRY UP 363 BUT DESPITE ITS RECORDBREAKING PERFORMANCE TOYOTA'S MARKET SHARE DROPPED TO 71 FROM 74 AS MOST OTHER MANUFACTURERS POSTED MUCH SHARPER SALES INCREASES HONDA MOTOR CO'S SALES INCREASED 283 LARGELY ON THE STRENGTH OF THE COMPANY'S REDESIGNED ACCORD WHICH HAD A 464 SALES INCREASE TO 30110 VEHICLES NISSAN MOTOR CO'S SALES JUMPED 399 LED BY STRONG SALES OF THE MAXIMA ALTIMA AND SENTRA SEDANS MAZDA MOTOR CO'S SALES SURGED 436 BOOSTED BY STRONG SALES OF THE PROTEGE SMALL CAR AND THE NEWLY INTRODUCED MILLENIA MITSUBISHI'S SALES WERE A RECORD FOR MARCH THE COMPANY SAW BIG INCREASES IN ITS GALANT AND ECLIPSE CAR MODELS MEXICO FOR SALE IN THE US TOURISTDELIVERY SALES OF IMPORTED MODELS A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME 9404070137 940407 LAW TWO WHO SHREDDED DOCUMENTS AT ROSE LAW FIRM RESIGN BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL THE TWO COURIERS AT THE CENTER OF THE CONTROVERSY OVER DOCUMENT SHREDDING AT THE ROSE LAW FIRM HAVE QUIT THEIR JOBS ROBERT FISKE SPECIAL COUNSEL IN THE WHITEWATER CASE HAS BEEN INVESTIGATING ALLEGATIONS THAT THE TWO PARTTIME COURIERS DESTROYED DOCUMENTS BELONGING TO WHITE HOUSE AIDE VINCENT FOSTER WHOSE BODY WAS FOUND IN A VIRGINIA PARK LAST YEAR ROSE MANAGING PARTNER RONALD CLARK AND A LAWYER FOR THE TWO COURIERS SAID THEY LEFT THE FIRM OF THEIR OWN VOLITION MR CLARK AND ONE OF THE COURIERS CLAYTON LINDSEY TESTIFIED ABOUT THE SHREDDING BEFORE A SPECIAL GRAND JURY IN LITTLE ROCK ARK LAST WEEK ACCORDING TO PEOPLE FAMILIAR WITH MR FISKE'S INVESTIGATION JEREMY HEDGES THE OTHER COURIER TESTIFIED EARLIER BEFORE ANOTHER GRAND JURY MR HEDGES HAS SAID THAT HE AND MR LINDSEY DESTROYED DOCUMENTS IN A BOX MARKED WITH MR FOSTER'S INITIALS MR FOSTER HANDLED SOME TAX MATTERS INVOLVING PRESIDENT CLINTON'S AND HILLARY RODHAM CLINTON'S WHITEWATER DEVELOPMENT CORP INVESTMENT A FILE PERTAINING TO THE INVESTMENT WAS FOUND IN MR FOSTER'S OFFICE AFTER HIS DEATH PRIOR TO BECOMING DEPUTY WHITE HOUSE COUNSEL MR FOSTER WAS A PARTNER AT THE ROSE LAW FIRM MR CLARK HAS SAID THAT NONE OF MR FOSTER'S FILES WERE SHREDDED MESSRS HEDGES AND LINDSEY WHO ARE STUDENTS AT THE UNIVERSITY OF ARKANSAS AT LITTLE ROCK HAVE BEEN VAGUE ABOUT THE TIMING OF THE SHREDDING AND THEIR VERSIONS OF EVENTS HAVE VARIED IN NUMEROUS INTERVIEWS WITH REPORTERS IN AN INTERVIEW YESTERDAY MR LINDSEY SAID I DON'T HAVE ANY IDEA WHETHER THE MATERIALS HE SHREDDED WERE FOSTER FILES I JUST DON'T THINK THE ROSE LAW FIRM WOULD DO THAT HE ADDED MR HEDGES COULDN'T BE REACHED FOR COMMENT LAST MONTH MR HEDGES SAID THAT HE THOUGHT THE SHREDDING OCCURRED AFTER MR FISKE WAS APPOINTED IN LATE JANUARY AS HE WAS AWARE OF MR FISKE'S NAME AT THE TIME HE HAS TOLD AT LEAST ONE PERSON THAT THE SHREDDING TOOK PLACE AFTER THE ROSE FIRM RECEIVED A SUBPOENA THE FBI HELPED HIM PLACE THE DATE SAID THIS PERSON THE LAW FIRM RECEIVED A SUBPOENA IN JANUARY FROM A JUSTICE DEPARTMENT LAWYER INVESTIGATING WHITEWATER PRIOR TO MR FISKE'S APPOINTMENT A LAWYER ON MR FISKE'S STAFF DECLINED TO COMMENT PAT AYDELOTT THE COURIERS' LAWYER SAID MR HEDGES WAS ABLE TO REMEMBER THE DATE AFTER HE RELATED IT TO SOMETHING HE WAS DOING AT SCHOOL HE SAID HE THINKS MR FISKE IS DONE WITH MY BOYS AND HE'S MOVING ON UP THE LADDER TO SEE WHERE THE BOX CAME FROM AND WHO COMPILED THE BOX MEANWHILE DAVID KENDALL THE CLINTONS' LAWYER RETURNED TO JAMES MCDOUGAL 2000 PAGES OF WHITEWATER DOCUMENTS MR MCDOUGAL WHO SAID HE NEEDED THE DOCUMENTS TO PREPARE HIS TAX RETURNS WAS A PARTNER OF THE CLINTONS IN THE ILLFATED REALESTATE INVESTMENT THE DOCUMENTS INCLUDED BANK RECORDS ESCROW RECEIPTS AND CORPORATE TAX RETURNS IN A LETTER TO MR MCDOUGAL'S ATTORNEY MR KENDALL NOTED THAT THE CLINTONS GOT THE RECORDS IN LATE 1989 OR EARLY 1990 WHEN THEIR ACCOUNTANT SOUGHT TO PREPARE CORPORATE TAX RETURNS HE SAID THE CLINTONS NEVER POSSESSED A COMPLETE SET OF CORPORATE RECORDS FOR WHITEWATER AND HE NOTED THAT THE CLINTONS SOLD THEIR SHARE IN THE DEVELOPMENT TO MR MCDOUGAL IN 1992 SEPARATELY THE FEDERAL DEPOSIT INSURANCE CORP HAS ASKED ABOUT 100 LAW FIRMS NATIONALLY WHETHER THEY HIRED THE ROSE FIRM TO WORK ON ANY FDIC OR FEDERAL SAVINGS & LOAN INSURANCE CORP MATTERS AS A SUBCONTRACTOR OR LOCAL COUNSEL THE FDIC ASKED THE LAW FIRMS TO PRESERVE ALL FILES AND BILLS RELATED TO WORK PERFORMED BY ROSE ALAN J WHITNEY AN FDIC SPOKESMAN SAID THE LETTER WAS SENT TO LAW FIRMS IN THE PAST WEEK SO THAT THE AGENCY COULD PROVIDE THE INFORMATION TO NEW YORK SEN ALFONSE D'AMATO AND IOWA REP JAMES LEACH WHO HAVE CALLED FOR CONGRESSIONAL HEARINGS INTO WHITEWATER MR CLARK OF THE ROSE FIRM SAID HE DIDN'T KNOW OF THE FDIC REQUEST BRUCE INGERSOLL IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9404070136 940407 MARKETING & MEDIA TORSTAR PLANS NEW CHANNEL TORONTO TORSTAR CORP SAID IT WILL LAUNCH A NEW CABLE TELEVISION CHANNEL THAT WILL PROVIDE PREVIEWS OF MOTION PICTURES AND LOCAL THEATER LISTINGS ACROSS THE US TORSTAR A TORONTO PUBLISHING CONCERN SAID IT WILL START POPCORN CHANNEL EARLY NEXT YEAR IN A JOINT VENTURE WITH SALTER STREET FILMS LTD A CANADIAN FILM AND TELEVISION PRODUCTION COMPANY A TORSTAR OFFICIAL SAID THE COMPANY WILL INITIALLY OWN 80 OF THE VENTURE BUT WILL SEEK OTHER PARTNERS THE CHANNEL WILL REQUIRE A TOTAL INVESTMENT OF LESS THAN 25 MILLION OVER THE NEXT FEW YEARS THE OFFICIAL SAID 9404070135 940407 DEFENSEPARTS SUPPLIERS CHARGED IN KICKBACK CASE BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS FEDERAL PROSECUTORS FILED CRIMINAL CHARGES AGAINST THREE SMALL DEFENSEPARTS SUPPLIERS AND 10 PEOPLE FOR ALLEGED KICKBACK SCHEMES INVOLVING MILITARY CONTRACTS ACCORDING TO THE INDICTMENTS THE SUPPLIERS PAID PURCHASING OFFICIALS AT DEFENSE CONTRACTORS INCLUDING BELL HELICOPTER TEXTRON INC AND VOUGHT AIRCRAFT INC IN EXCHANGE FOR INSIDE INFORMATION AND FAVORABLE TREATMENT NEITHER BELL HELICOPTER NOR VOUGHT WAS CHARGED BUT FORMER EMPLOYEES OF THE COMPANIES WERE CHARGED BELL HELICOPTER IS A UNIT OF TEXTRON INC PROVIDENCE RI VOUGHT IS A JOINT VENTURE OF CARLYLE GROUP A WASHINGTON INVESTMENT COMPANY AND NORTHROP CORP BASED IN LOS ANGELES BELL HELICOPTER SAID IT INFORMED THE GOVERNMENT ABOUT TWO YEARS AGO OF POSSIBLE MISCONDUCT INVOLVING PARTS PURCHASING AND SAID IT HAS BEEN COOPERATING WITH FEDERAL AUTHORITIES SINCE THEN THE TIPOFF CAME WHEN WE FOUND MATERIAL COMING IN THAT WAS SUBSTANDARD SAID BELL HELICOPTER SPOKESMAN BOB LEDER BUT HE ADDED NONE OF THIS MATERIAL WAS USED FOR FLIGHTSAFETYCRITICAL PARTS VOUGHT AIRCRAFT SAID IT HAD NO COMMENT ON THE CHARGES THE CHARGES COME AT A TIME OF INCREASING CONCERN ABOUT WHETHER SHRINKAGE AND CONSOLIDATION OF DEFENSE CONTRACTORS WILL HURT COMPETITION IN THE INDUSTRY AS THE DEFENSE DOLLARS SHRINK YOU'RE GOING TO SEE A LOT MORE OF THIS TYPE OF ACTIVITY SAID RONALD MAU SPECIAL AGENT WITH THE ARMY'S CRIMINAL INVESTIGATION COMMAND THE THREE SUPPLIERS CHARGED WERE C&A ELECTRONICS OF DALLAS ELECTRO ENTERPRISES INC OF OKLAHOMA CITY AND HITECH MANUFACTURING CO OF GRAND PRAIRIE TEXAS OFFICIALS AT ALL THREE COMPANIES COULDN'T BE REACHED FOR COMMENT PROSECUTORS SAID THEY REACHED PLEA AGREEMENTS WITH ELECTRO ENTERPRISES AND HITECH MANUFACTURING THE INDIVIDUALS CHARGED INCLUDE TWO FORMER BELL HELICOPTER BUYERS A VOUGHT BUYER FOUR ELECTRO ENTERPRISES EMPLOYEES TWO C & A OFFICIALS AND AN EMPLOYEE OF A COMPANY THAT REPRESENTED SEVERAL PARTS SUPPLIERS THREE OF THE PEOPLE CHARGED AGREED TO PLEAD GUILTY PROSECUTORS SAID US ATTORNEY PAUL COGGINS SAID THE GOVERNMENT'S TWOYEAR PROBE EMPLOYED UNDERCOVER AGENTS POSING AS BUYERS HE SAID INVESTIGATORS ALSO USED WIRETAPS ON SIX TELEPHONE LINES TO RECORD THOUSANDS OF CONVERSATIONS 9404070134 940407 QUARTERLY MUTUAL FUNDS REVIEW SEE THE FOREST WHEN WEIGHING THE FEES BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL SOME MUTUALFUND FEES NEVER DIE AND MANY INVESTORS BARELY REALIZE IT THANKS TO TODAY'S DIZZYING ARRAY OF MUTUALFUND PRICING STRUCTURES AND LOOPHOLES IN THE REGULATIONS REGULATORS LAST SUMMER ADOPTED NEW RULES DESIGNED TO SET A MAXIMUM LEVEL FOR THE CONTINUING BROKERAGE COMMISSIONS KNOWN AS 12B1 FEES THAT FUNDS CHARGE SHAREHOLDERS BUT IF YOU'RE IN A BROKERSOLD FUND WITH AN ANNUAL 12B1 FEE CHANCES ARE YOU'LL END UP PAYING MORE OVER THE YEARS THAN THE 85 LEGAL SALESCOMMISSION LIMIT FOR INITIAL FUND PURCHASES THE 12B1 FEE IS BASED ON A FUND'S TOTAL ASSETS AND THEN PRORATED FOR EACH HOLDER THAT COULD BE ONE OF THE RESULTS ULTIMATELY BUT YOU'D HAVE TO BE A LONGTERM SHAREHOLDER SAYS R CLARK HOOPER A VICE PRESIDENT WITH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH PROPOSED THE REVISED RULES APPROVED BY THE SECURITIES AND EXCHANGE COMMISSION LAST JULY IF IT APPEARS SUCH PRICING MANEUVERS VIOLATE THE LEGAL MAXIMUM ON A FUND'S LOAD OR SALES COMMISSION THEY ESSENTIALLY DO BUT THAT'S ALL RIGHT ACCORDING TO FEDERAL REGULATIONS AS LONG AS THE FUND TELLS YOU ABOUT IT FUNDS MUST DISCLOSE IN THEIR PROSPECTUSES AND NEAR THE FEE TABLE THAT SUCH 12B1 CHARGES COULD RESULT IN LONGTERM SHAREHOLDERS PAYING MORE THAN THE MAXIMUM 85 SALES CHARGE MS HOOPER SAYS FUNDS THAT ARE SOLD BY BROKERS OR FINANCIAL PLANNERS CHARGE A SALES COMMISSION OR LOAD EITHER WHEN YOU BUY OR SELL A FUND NOLOAD FUNDS ARE SOLD DIRECTLY TO THE PUBLIC BY THE FUND COMPANY ALL FUNDS CHARGE ANNUAL EXPENSES MANY FUNDS HAVE ADDED THE ANNUAL 12B1 FEE NAMED AFTER THE SEC RULES THAT PERMITS THEM INITIALLY THE FEE WAS TO HELP A FUND PAY FOR MARKETING COSTS BUT NOW IT COMPENSATES BROKERS WHO SELL THE FUNDS UNDER THE NEW RULES MUTUAL FUNDS CAN'T CHARGE ANNUALLY MORE THAN 075 IN 12B1 FEES NOR MORE THAN 025 IN A SERVICE FEE WHICH IS TO COMPENSATE BROKERS FOR KEEPING UP ON YOUR INVESTMENTS THE 12B1 FEES PREVIOUSLY HAD BEEN UNREGULATED ALTHOUGH MANY FUND GROUPS KEPT THEM AT OR UNDER 125 ANNUALLY WHILE THE FUND INDUSTRY SAYS SHAREHOLDERS CAN CONCEIVABLY EXCEED THE SALESCHARGE LIMIT THEY ARGUE THAT INVESTORS ARE UNLIKELY TO FALL INTO THAT TRAP LOAD FUNDS WITH CUMULATIVE 12B1 EXPENSES DO TEND TO EXCEED AN 85 SALES CHARGE AFTER 10 TO 12 YEARS BUT SHAREHOLDERS STICK WITH A FUND FOR AN AVERAGE OF ONLY FIVE TO SEVEN YEARS ACCORDING TO THE INVESTMENT COMPANY INSTITUTE THE FUND TRADE GROUP THAT 10TO12YEAR TIME RANGE TAKES INTO ACCOUNT THE DECLINING VALUE OF MONEY THE FACT THAT INVESTORS WHO PAY UPFRONT LOADS HAVE LESS MONEY WORKING FOR THEM RIGHT AWAY AND THE UNLIKELIHOOD THAT A FUND HAS BOTH STEEP UPFRONT LOADS AND HIGH 12B1 FEES FOR INSTANCE A FUND PROBABLY WOULDN'T CARRY A 45 UPFRONT LOAD PLUS A 1 ANNUAL 12B1 IT WOULD HAVE ONE OR THE OTHER OR IT MIGHT HAVE A HIGH LOAD BUT A SMALL 12B1 FUND EXPERTS SAID THE REVISED RULES ALSO STATE THAT IF FUNDS DON'T INCREASE SALES OF SHARES TO NEW INVESTORS THEY CAN'T COLLECT THE FULL 12B1 FEE SO THIS WILL LOWER COSTS TO SHAREHOLDERS IN THE FUNDS THE NASD'S MS HOOPER SAID BUT WITH ALL OF THESE CONDITIONS IT'S HARD TO KNOW WHEN YOU'VE SAILED PAST THE SALESCHARGE LIMITS NO CLEAR WARNINGS THERE'S NO MAGICAL GREEN LIGHT THAT SAYS YOU'RE ABOUT TO PAY MORE SAYS GEOFFREY BOBROFF A DENVER MUTUALFUND CONSULTANT MANY FUND SHAREHOLDERS ARE AFFECTED BY THESE RULES AT THE END OF THE YEAR 3532 MUTUAL FUNDS OUT OF 5881 CARRIED A 12B1 FEE ACCORDING TO LIPPER ANALYTICAL SERVICES INC NOLOAD FUNDS ARE INCLUDED IN THE RULE CHANGES ONLY FUNDS THAT CHARGE 12B1 FEES OF AT MOST 025 ARE PERMITTED TO CALL THEMSELVES NOLOAD DECIDE HOW LONG YOU'LL STICK WITH A FUND MR BOBROFF SAYS BECAUSE IT'S DIFFICULT TO MAKE A JUDGMENT UNLESS YOU HAVE A GOOD SENSE OF THE TIME HORIZON ON BROKERSOLD FUNDS MUTUALFUND EXPERTS SAY INVESTORS PLANNING FOR THE LONGTERM MAY BE BETTER OFF WITH THE 'A' SHARES OF FUNDS WITH UPFRONT SALES CHARGES OF 4 TO 5 THE INDUSTRY AVERAGE THESE FUNDS TYPICALLY HAVE SMALL IF ANY 12B1 FEES THE B' SHARES OF FUND HAVE NO UPFRONT COMMISSION BUT CHARGE YOU IF YOU CASH OUT TOO EARLY TYPICALLY BEFORE SIX YEARS THESE SHARES CARRY HIGHER ANNUAL 12B1 FEES BUT CONVERT TO A' SHARES AFTER SIX OR SO YEARS SO YOU CAN ESCAPE THE HIGH 12B1 CHARGE SHAREHOLDERS WHO CAN'T LOOK OUT PAST THREE OR FIVE YEARS SHOULD BUY A FUND WITH THE INCREASINGLY POPULAR C' OR D' SHARES OR LEVELLOAD FUNDS MR BOBROFF SAYS THESE FUNDS CARRY NO UPFRONT OR BACKEND COMMISSION BUT THEY HAVE A 1 ANNUAL 12B1 FEE 9404070133 940407 INTERNATIONAL CREDIT LYONNAIS PULLS OUT OF KEY FRENCH BANK GROUP PARIS JEAN PEYRELEVADE CHAIRMAN OF CREDIT LYONNAIS HAS SUSPENDED PARTICIPATION IN THE INFLUENTIAL ASSOCIATION FRANCAISE DES BANQUES TO PROTEST CRITICISMS OF CREDIT LYONNAIS BY OTHER PROMINENT BANKERS MR PEYRELEVADE CONFIRMED THE DECISION IN A RADIO INTERVIEW YESTERDAY NOTING THAT THE DECISION IS FOR THE TIME BEING THE RECENTLY ANNOUNCED GOVERNMENTBAILOUT PLAN FOR CREDIT LYONNAIS WHICH HAD A LOSS OF 69 BILLION FRANCS 118 BILLION IN 1993 HAS SPARKED PROTESTS FROM VARIOUS FINANCIALCOMMUNITY OBSERVERS NOTABLY SOCIETE GENERALE CHAIRMAN MARC VIENOT HAS SUGGESTED THAT THE BAILOUT PLAN MIGHT HAVE BEEN MORE APPROPRIATE AFTER CREDIT LYONNAIS HAD MADE A SINCERE EFFORT TO SHED ASSETS AND CUT COSTS THE HEAVY LOSSES AT CREDIT LYONNAIS HAVE SWEPT UP A POLITICAL STORM OVER THE ROLE OF JEANYVES HABERER WHO WAS SUCCEEDED BY MR PEYRELEVADE LATE LAST YEAR MR HABERER ORIGINALLY WAS PARACHUTED INTO THE TOP JOB AT CREDIT NATIONAL A SMALLER STATEOWNED BANK LAST WEEK HOWEVER AMID AN ACRIMONIOUS DEBATE OVER WHO IS TO BLAME FOR CREDIT LYONNAIS LOSSES THE GOVERNMENT ANNOUNCED THAT MR HABERER HAD BEEN FIRED 9404070132 940407 NEW ENGLAND INVESTMENT FUND NEW ENGLAND INVESTMENT COS IS CHANGING THE NAME OF ONE OF ITS MUTUALFUND GROUPS TO NEW ENGLAND FUNDS STARTING APRIL 18 THE FUND GROUP IS CURRENTLY CALLED TNE FUND GROUP NEW ENGLAND INVESTMENT COS BASED IN BOSTON IS A PUBLICLY TRADED LIMITED PARTNERSHIP WITH MORE THAN 60 BILLION IN ASSETS THE FIRM WAS CREATED WHEN PUBLICLY TRADED REICH & TANG A SMALL FUND GROUP MERGED LAST YEAR WITH THE MUCHLARGER NEW ENGLAND INVESTMENT COS A SUBSIDIARY OF NEW ENGLAND MUTUAL LIFE INSURANCE CO NEW ENGLAND MUTUAL LIFE STILL OWNS 65 OF NEW ENGLAND INVESTMENT COS 9404070131 940407 TECHNOLOGY SOFTWARE MAKER TO LAY OFF HALF ITS STAFF IN 90 DAYS BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL SANTA CLARA CALIF SOFTWARE PUBLISHING CORP BATTERED AFTER SHIFTS IN THE WAY COMPUTER PROGRAMS ARE SOLD SAID IT WILL LAY OFF HALF OF ITS 480 EMPLOYEES OVER THE NEXT 90 DAYS TAKE A RESTRUCTURING CHARGE OF 9 MILLION AND REPORT A DISASTROUS DROP IN SALES FOR ITS FISCAL SECOND QUARTER ENDED MARCH 31 THE COMPANY ALSO SAID THAT ITS FOUNDER FRED GIBBONS HAS BEEN REPLACED AS CHIEF EXECUTIVE OFFICER BY IRFAN SALIM PRESIDENT AND CHIEF OPERATING OFFICER MR GIBBONS A PIONEER IN THE PERSONALCOMPUTER SOFTWARE INDUSTRY WHO WAS ONCE CONSIDERED IN THE SAME LEAGUE AS MICROSOFT'S WILLIAM GATES WILL REMAIN AS CHAIRMAN SOFTWARE PUBLISHING WHICH IN THE EARLY 1980S WAS TOUTED AS A BUDDING SUPERSTAR IN A FASTGROWTH INDUSTRY HAS SEEN ITS BUSINESS COLLAPSE ALMOST OVERNIGHT THE COMPANY SAID IT EXPECTS REVENUE OF 14 MILLION FOR ITS FISCAL SECOND QUARTER COMPARED WITH REVENUE OF 434 MILLION IN THE YEARAGO PERIOD IN A RECENT INTERVIEW MR GIBBONS BEMOANED THE RISE OF TWO FORCES IN SOFTWARE SHARPLY LOWER PRICES AND THE PRACTICE OF BUNDLING DIFFERENT PROGRAMS TOGETHER AS A SINGLE UNIT OR SUITE BECAUSE IT LACKS A BROAD PRODUCT LINE SOFTWARE PUBLISHING WHICH OFFERS A HIGHLY REGARDED GRAPHICS PROGRAM HAS BEEN GORED BY MICROSOFT CORP AND LOTUS DEVELOPMENT CORP WHICH TOGETHER DOMINATE THE SUITE MARKET AND HAVE THEIR OWN GRAPHICS PROGRAMS THE COMPANY ALSO HAS BEEN SQUEEZED BY THE SHARP FALL IN SOFTWARE PRICES IN MANY CASES PROGRAMS NOW SELL FOR A THIRD OR LESS OF THE PRICE THEY COMMANDED TWO AND THREE YEARS AGO SOFTWARE PUBLISHING IS ALSO STILL HURTING FROM ITS INABILITY TO SHIFT ITS PROGRAMS FROM THE AGING DOS OPERATING SYSTEM TO WINDOWS WHICH IN RECENT YEARS HAS COME TO DEFINE PC SOFTWARE IN ITS HARVARD GRAPHICS PRODUCT THE COMPANY HAD BEEN THE LEADER IN DOS GRAPHICS PROGRAMS BUT IN THE WINDOWS ERA THE PROGRAM HAS LAGGED CONSIDERABLY A YEAR OR SO AGO THEY SHOULD'VE SOLD OUT TO A LARGE COMPANY WHO COULD'VE PUT HARVARD GRAPHICS INTO A SUITE SAID KENNETH BURKE A SOFTWARE ANALYST AT MABON SECURITIES IN SAN FRANCISCO WITH 53 MILLION IN CASH ON HAND SOFTWARE PUBLISHING STILL IS VIABLE AND COULD BE SOLD BUT THE OUTLOOK IS CLOUDY WHEN SALES ARE DECLINING AT AN ACCELERATING RATE SAID MR BURKE IN A STATEMENT THE COMPANY SAID IT INTENDS TO CONCENTRATE ON ITS STRENGTHS IN GRAPHICS AND TO CONSOLIDATE ITS SALES MARKET AND PRODUCT DEVELOPMENT ACTIVITIES IT ALSO SAID IT SIGNED A LETTER OF INTENT TO SELL ITS CUSTOMERSERVICE CENTER IN MADISON WIS TO A PENNSYLVANIA SOFTWARE VENDOR NAMED SOFTMART THE NEWS WAS DISCLOSED AFTER THE CLOSE OF TRADING SOFTWARE PUBLISHING'S STOCK FINISHED AT 7125 UNCHANGED ON THE NASDAQ STOCK MARKET IT HAD TRADED AS HIGH AS 3525 IN 1991 9404070130 940407 INVESTORS SHIFT MORE THAN 76 BILLION TO MONEY FUNDS BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL INDIVIDUAL INVESTORS FLEEING THE TURMOIL IN THE STOCK AND BOND MARKETS POURED MORE THAN 76 BILLION INTO MONEYMARKET MUTUAL FUNDS DURING THE LATEST WEEK THAT'S MORE THAN HALF OF THE 12 BILLION THAT WAS ADDED TO MONEY FUNDS DURING THE ENTIRE FIRST QUARTER AND THE LARGEST WEEKLY INFLOW IN MANY MONTHS NEARLY ALL OF THE LATEST FLOOD OF CASH 732 BILLION WENT INTO TAXABLE FUNDS WHOSE AVERAGE YIELD TOPPED 3 FOR THE FIRST TIME SINCE SEPTEMBER 1992 ABOUT 320 MILLION WENT INTO TAXEXEMPT FUNDS WE HAVEN'T HAD ANYTHING LIKE THIS FOR A WHILE SAID WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER BUT THIS HAS BEEN THE FIRST BIG CORRECTION IN THE BOND AND STOCK MARKETS IN A WHILE MONEYFUND ASSETS HAD BEEN FALLING STEADILY AS YIELDS PLUMMETED TO ALLTIME LOWS AFTER DROPPING TO 267 LATE LAST YEAR FROM NEARLY 10 IN THE SPRING OF 1989 YIELDS ON TAXABLE FUNDS BEGAN RISING CONSISTENTLY IN EARLY FEBRUARY FOLLOWING THE FEDERAL RESERVE'S MOVE TO TIGHTEN SHORTTERM INTEREST RATES IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS WHICH ASSUMES REINVESTMENT OF DIVIDENDS ROSE TO 302 FROM 298 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT FUND MANAGERS ARE POSITIONING THEMSELVES FOR FURTHER INCREASES IN SHORTTERM RATES WHICH WOULD PUSH UP YIELDS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS PRIMARILY COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY AND GOVERNMENT AGENCY SECURITIES SHORTENED BY A DAY TO 47 DAYS THE SHORTEST IT HAS BEEN SINCE JANUARY 1991 SECURITIES AND EXCHANGE COMMISSION REGULATIONS LIMIT MONEY FUNDS TO A MAXIMUM AVERAGE MATURITY OF 90 DAYS THE RECENT PEAK WAS 66 DAYS IN LATE 1992 INSTITUTIONAL INVESTORS ACTUALLY WITHDREW NEARLY 5 BILLION FROM TAXABLE FUNDS IN THE LATEST WEEK IN FAVOR OF DIRECT MARKET INVESTMENTS MONEYFUND YIELDS TYPICALLY LAG BEHIND MARKET RATES AND INSTITUTIONS TEND TO MOVE CASH IN AND OUT FREQUENTLY TO CAPTURE THE BEST RETURNS AS A RESULT TOTAL ASSETS OF TAXABLE FUNDS ROSE JUST 233 BILLION IN THE LATEST WEEK TO 47849 BILLION ACCORDING TO MONEY FUND REPORT OF THAT TOTAL 3272 BILLION IS IN FUNDS OPEN TO INDIVIDUALS AND 15129 BILLION IS IN INSTITUTIONAL FUNDS THE PAST WEEK'S RISE IN MONEYFUND ASSETS CAME WHEN INDIVIDUAL INVESTORS WERE OFTEN TAPPING FUNDS TO WRITE CHECKS TO THE INTERNAL REVENUE SERVICE THE ASSET INFLOWS CONFIRM WHAT MUTUALFUND COMPANIES HAVE BEEN SAYING FOR THE LAST WEEK INVESTORS ARE PULLING SIGNIFICANT CASH OUT OF STOCK AND BOND FUNDS BUT THE SURGE HASN'T TURNED INTO A GENUINE FLOOD ALTHOUGH 7 BILLION IS SUBSTANTIAL IT WASN'T UNUSUAL WHEN INTEREST RATES WERE SOARING INTO DOUBLEDIGITS IN THE LATE 1980S FOR ASSETS TO RISE BY 10 BILLION A WEEK OR MORE INDEED THE LATEST GROWTH AMOUNTS TO JUST 23 OF THE ASSETS OF FUNDS OPEN TO INDIVIDUALS THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS ROSE TO 297 FROM 293 DURING THE LATEST WEEK ACCORDING TO MONEY FUND REPORT THE AVERAGE 30DAY SIMPLE YIELD ROSE TO 290 FROM 286 AND THE AVERAGE 30DAY COMPOUND YIELD WENT TO 293 FROM 290 TAXEXEMPT YIELDS TYPICALLY ARE MORE VOLATILE THAN TAXABLE YIELDS IN RESPONSE TO THE SUPPLY OF AND DEMAND FOR THE SHORTTERM MUNICIPAL SECURITIES THE FUNDS BUY AVERAGE MATURITY OF THE TAXEXEMPT FUNDS' PORTFOLIOS SHORTENED BY A DAY TO 50 DAYS ASSETS OF ALL 351 TAXFREE FUNDS TRACKED BY MONEY FUND REPORT INCLUDING THOSE OPEN TO INSTITUTIONS ROSE BY 380 MILLION TO 11626 BILLION MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9404070129 940407 INTERNATIONAL SPRINT FIVE OTHER PHONE COMPANIES RECEIVE LICENSES TO EXPAND IN BRITAIN BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IN A MOVE THAT MAY HELP RESOLVE A TELECOMMUNICATIONS TRADE SPAT WITH WASHINGTON THE BRITISH GOVERNMENT GRANTED LICENSES FOR SPRINT CORP AND FIVE OTHER COMPANIES TO EXPAND THEIR TELECOMMUNICATIONS SERVICES IN BRITAIN THE DECISION GIVES THE COMPANIES THE FULL AUTHORITY THEY HAD BEEN SEEKING TO COMPETE HEADON WITH THE COUNTRY'S MAIN CARRIERS BRITISH TELECOMMUNICATIONS PLC AND CABLE & WIRELESS PLC'S MERCURY COMMUNICATIONS LTD IN CONNECTING PHONE CALLS MADE WITHIN BRITAIN FOR CALLS ABROAD IT LETS THEM EXPAND THEIR SERVICES THOUGH STILL FALLS SHORT OF FULL CLEARANCE THEY CAN'T USE THEIR OWN LINES TO CARRY THEIR CUSTOMER'S CALLS ABROAD AND MUST LEASE THEM INSTEAD FROM BT OR MERCURY BESIDES KANSAS CITY MOBASED SPRINT THE THIRDLARGEST US LONGDISTANCE CARRIER THE LICENSEES ARE THE WORLDCOM UNIT OF CULVER CITY CALIFBASED IDB COMMUNICATIONS GROUP INC CANADA'S VIDEOTRON CORP TELIA AB THE SWEDISH STATE PHONE COMPANY TELSTRA CORP AUSTRALIA'S MAIN PHONE COMPANY AND NORWEB PLC A BRITISH ELECTRICITY COMPANY MOST HAD ALREADY BEEN PROVIDING LIMITED SERVICES IN BRITAIN UNDER NARROWER PERMITS WITH THE NEW LICENSES ACCORDING TO THE UK DEPARTMENT OF TRADE AND INDUSTRY THE SIX MAY INVEST MORE THAN 100 MILLION 146 MILLION EXPANDING THEIR UK SERVICES THE SPRINT AND IDB AWARDS IN PARTICULAR MAY EASE TRADE TENSIONS BETWEEN LONDON AND WASHINGTON OVER LICENSING EACH OTHERS' PHONE COMPANIES AMONG OTHER THINGS THE BRITISH MOVE MAY IMPROVE THE POLITICAL CLIMATE IN WASHINGTON FOR CLEARANCE OF BT'S LONGDELAYED APPLICATION TO BUY A 43 BILLION 20 STAKE IN MCI COMMUNICATIONS INC THE INVESTMENT FIRST PROPOSED LAST JUNE HAS BEEN DELAYED PENDING REVIEWS BY THE FEDERAL COMMUNICATIONS COMMISSION AND THE US JUSTICE DEPARTMENT WE CERTAINLY VIEW IT AS POSITIVE SAID DIANE CORNELL THE FCC CHAIRMAN'S TOP AIDE ON INTERNATIONAL ISSUES THE BRITISH GOVERNMENT MOVED FORWARD IN PROCESSING THE LICENSING APPLICATIONS OF US CARRIERS WHILE NOT MENTIONING BT DIRECTLY A JUNIOR BRITISH TRADE AND TECHNOLOGY MINISTER PATRICK MCLOUGHLIN HIGHLIGHTED THE POLITICS OF THE LICENSE AWARDS BY ISSUING A STATEMENT SAYING THEY CONFIRM THE POSITION OF THE UK AS THE MOST OPEN TELECOMSMARKET IN THE WORLD WE HAVE NO BARRIERS APPLYING SPECIFICALLY TO FOREIGN COMPANIES THE BRITISH GOVERNMENT HAS BEEN COMPLAINING THAT SUCH BARRIERS EXIST IN US LAW UNDER WHICH ALL BUT A FEW FOREIGNERS HAVE BEEN BARRED FROM OWNING MORE THAN 25 OF ANY US COMPANY WITH A PUBLIC RADIOCOMMUNICATIONS LICENSE IN OTHER WORDS ANY SIGNIFICANT TELECOMMUNICATIONS SERVICE COMPANY US GOVERNMENT OFFICIALS WHILE ACKNOWLEDGING THE BRITISH GRIPE COUNTER THAT OTHER ASPECTS OF THE UK REGULATORY SYSTEM MAKE IT TOUGH FOR FOREIGNERS IN BRITAIN IN THE PAST TWO YEARS THE BICKERING HAS BECOME ABOUT AS BITTER AS ANY TRADE DISPUTES EVER GET BETWEEN TWO SUCH FRIENDLY NATIONS AND HAS TIED UP LICENSE APPLICATIONS IN BOTH COUNTRIES INCLUDING ONE BY AMERICAN TELEPHONE & TELEGRAPH CO IN BRITAIN INDEED AT&T WAS CONSPICUOUSLY ABSENT FROM YESTERDAY'S AWARDS ALL APPLICATIONS ARE DEALT WITH ON A CASEBYCASE BASIS AND WE'LL MAKE AN ANNOUNCEMENT IN DUE COURSE A TRADE DEPARTMENT SPOKESWOMAN SAID WHEN ASKED ABOUT AT&T AN AT&T SPOKESWOMAN CALLED SPRINT'S SUCCESS GREAT NEWS FOR OPEN COMPETITION IN THE UK AS FOR OUR OWN LICENSE WE'RE STILL WAITING TO HEAR THE BRITISH GOVERNMENT ACTUALLY SIGNALED LAST SUMMER THAT THE SPRINT AND IDB LICENSES WERE COMING AND EVEN GAVE IDB A TEMPORARY ONE BUT THEN AS THE TRADE TENSIONS MOUNTED WITH WASHINGTON THE BRITISH BUREAUCRATS HANDLING THE LICENSES BEGAN DRAGGING THEIR FEET WE EXPECTED FURTHER DELAYS SO IT RATHER TOOK US BY SURPRISE WHEN THE APPROVAL FINALLY CAME THROUGH THIS WEEK SAID VINCENT GARGARO CHIEF EXECUTIVE OF SPRINT'S OPERATIONS IN NORTHERN EUROPE UNDER AN EARLIER NARROWER LICENSE SPRINT ALREADY HAS 200 EMPLOYEES IN BRITAIN THEY MAINLY PROVIDE DATACOMMUNICATIONS SERVICES BUT LAST YEAR IT STARTED OFFERING LIMITED INTERNATIONAL VOICE COMMUNICATIONS USING BT AND MERCURY LINES TO CARRY SOME BUSINESSCUSTOMER CALLS FROM LONDON TO OTHER COUNTRIES ITS NEW LICENSE DESIGNATES IT AS A PUBLIC TELECOMMUNICATIONS OPERATOR AUTHORIZED TO CONNECT ANY LOCAL OR NATIONAL CALLS WITHIN THE UK EITHER WITH ITS OWN WIRES AND SWITCHES OR LEASING THEM FROM OTHERS ON INTERNATIONAL CALLS SPRINT AND THE OTHER NEW LICENSEES GOT HALF A LOAF SPRINT IS SEEKING FULL COMMERCIAL FREEDOM WITH A SOCALLED FACILITIESBASED LICENSE TO CONNECT ANY CUSTOMER'S CALL IN BRITAIN TO ANYWHERE IN THE WORLD USING ITS OWN NETWORK WHAT IT GOT INSTEAD WAS A LICENSE FOR SOCALLED INTERNATIONAL SIMPLE RESALE LEASING BT OR MERCURY LINES TO CARRY ITS CUSTOMERS' CALLS OUT OF THE COUNTRY TECHNICALLY THE LICENSE AUTHORIZES SUCH CALLS TO JUST THREE COUNTRIES CANADA AUSTRALIA AND SWEDEN BUT INDUSTRY EXECUTIVES SAY THAT MEANS ONLY THAT CALLS TO OTHER NATIONS SUCH AS THE US WILL HAVE TO BE ELECTRONICALLY ROUTED THROUGH ONE OF THE THREE DESIGNATED DESTINATIONS BRITISH OFFICIALS HAVE SAID THEY WON'T ALLOW DIRECT ROUTING TO THE US UNTIL THE FCC GRANTS EQUIVALENT FREEDOMS TO BRITISH COMPANIES OPERATING IN THE US SPRINT'S MR GARGARO CALLED THE INTERNATIONAL PERMIT HOWEVER LIMITED A MOVE IN THE RIGHT DIRECTION BUT WE BELIEVE THERE WILL COME A TIME WHEN WE DO GET THE FULL LICENSE 9404070128 940407 POLITICS & POLICY JUDGE THREATENS TO FINE LEHMAN BROTHERS ON DATA WASHINGTON A FEDERAL JUDGE THREATENED TO FINE LEHMAN BROTHERS IF IT DOESN'T PROVIDE A WEALTH OF DATA BY MONDAY TO PLAINTIFFS WHO SAY IT HELPED TWO HEDGE FUNDS EXECUTE A SQUEEZE ON US TREASURY NOTES IN APRIL 1991 LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO ISN'T A DEFENDANT IN THE SUIT BUT PLAINTIFFS ALLEGE THAT THE FIRM THEN KNOWN AS SHEARSON LEHMAN BROTHERS INC LENT MONEY IN AUGUST 1991 TO STEINHARDT MANAGEMENT CO AND CAXTON CORP AT A RATE HUNDREDS OF BASIS POINTS BELOW GENERAL RATES ACCORDING TO A COMPLAINT THAT HAS BEEN UNSEALED RECENTLY A BASIS POINT IS 1/100 OF A PERCENTAGE POINT THE SUIT ALLEGES THAT LEHMAN'S FINANCING HELPED THE HEDGE FUNDS TO HOLD ON TO 116 BILLION OF TWOYEAR TREASURY NOTES LAST WEEK SALOMON BROTHERS AND THE TWO HEDGE FUNDS AGREED TO SETTLE THE CLASSACTION LAWSUIT FOR 100 MILLION BUT US DISTRICT JUDGE ROBERT PATTERSON SAID AT A HEARING ON MONDAY IT'S NOT SETTLED AND IT MAY NOT EVEN BE PARTIALLY SETTLED HE EMPHASIZED HIS OBLIGATION TO DETERMINE IF THE PROPOSED SETTLEMENT IS REASONABLE A SPOKESMAN FOR LEHMAN WOULDN'T COMMENT YESTERDAY ALTHOUGH THE FIRM PREVIOUSLY HAS SAID ITS CONDUCT IN THE GOVERNMENTSECURITIES MARKET WAS BEYOND REPROACH 9404070125 940407 INTERNATIONAL TAIWAN'S CONSUMER PRICE INDEX TAIPEI TAIWAN TAIWAN'S CONSUMER PRICE INDEX ROSE 34 IN MARCH FROM THE YEAREARLIER MONTH TO 11002 BUT SLIPPED 02 FROM FEBRUARY THE DIRECTORATE GENERAL OF BUDGET ACCOUNTING AND STATISTICS SAID THIS COMPARES WITH FEBRUARY'S YEARONYEAR INCREASE OF 39 JANUARY'S 29 AND DECEMBER'S 46 9404070124 940407 SMALL STOCK FOCUS CASINO SHARES DIVE ON VOTE IN MISSOURI BY PAULINE YOSHIHASHI AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CASINO SHARES TOOK A BEATING BUT SMALLCAPITALIZATION ISSUES MANAGED TO EDGE UP FOR A SECONDCONSECUTIVE DAY IN CHOPPY TRADING THE RUSSELL 2000 INDEX A BROAD GAUGE OF SMALLSTOCK PERFORMANCE GAINED 057 OR 022 TO 25453 AFTER SURGING 692 OR 28 ON TUESDAY CASINO SHARES BIG AND SMALL WERE POUNDED BY NEWS THAT MISSOURI VOTERS NARROWLY REJECTED A STATE CONSTITUTIONAL AMENDMENT THAT WOULD HAVE ALLOWED SLOT MACHINES ON RIVERBOAT CASINOS THE MEASURE FELL SHORT BY JUST 1261 VOTES OUT OF MORE THAN A MILLION CAST BUT INVESTORS PUMMELED GAMBLING GIANTS SUCH AS PROMUS AND HILTON HOTELS AS WELL AS SMALLERCAP COMPANIES SUCH AS STATION CASINOS AND ARGOSY GAMING ALL OF WHICH HAVE SOME EXPOSURE IN MISSOURI THE FALLOUT FROM THE MISSOURI VOTE WAS GREATEST AT PRESIDENT RIVERBOAT CASINOS WHICH DIVED 30 IN EXTREMELY HEAVY TRADING PRESIDENT RIVERBOAT'S STOCK WHICH DROPPED 5 3/8 TO 12 1/2 ON THE NASDAQ STOCK MARKET WAS THE DAY'S MOST ACTIVELY TRADED ISSUE WITH MORE THAN 126 MILLION SHARES SWAPPING HANDS THE STOCK'S AVERAGE DAILY VOLUME IS AROUND A HALFMILLION SHARES AFTER THIS MISSOURI VOTE I THINK THE CASINO STOCKS ARE GOING TO BE DOWN AND OUT FOR A WHILE SAID GIL KNIGHT MANAGING DIRECTOR OF ASB CAPITAL MANAGEMENT IN WASHINGTON IT'S HURT THE SECTOR IN TERMS OF INVESTORS' CONFIDENCE THEY'LL WANT TO WAIT AND SEE STILL MANY INDUSTRY OPTIMISTS SAY ODDS ARE GOOD THAT MISSOURI VOTERS WILL APPROVE THE MEASURE IF IT'S OFFERED UP AGAIN IN THE STATE'S AUGUST PRIMARY ELECTION OR THE NOVEMBER GENERAL ELECTION SNOW AND RAIN MAY HAVE KEPT MANY VOTERS FROM THE POLLS AND SPRING ELECTIONS HISTORICALLY HAVE HAD WEAK TURNOUTS OBSERVERS SAID IN NOVEMBER 1992 MISSOURI VOTERS APPROVED A LAW LEGALIZING CASINOSTYLE GAMBLING ON THE MISSOURI AND MISSISSIPPI RIVERS BUT THE STATE SUPREME COURT BALKED AT LEGALIZING SLOT MACHINES BECAUSE IT'S UNCLEAR WHETHER THEY ARE GAMES OF SKILL LIKE BLACKJACK AND POKER OR GAMES OF CHANCE THE DEFEATED AMENDMENT 3 WOULD HAVE LIFTED THE STATE'S BAN ON GAMES OF CHANCE I THINK IT'S JUST A TEMPORARY SETBACK SAID ONE BULLISH ANALYST MICHAEL MUELLER OF MONTGOMERY SECURITIES IN SAN FRANCISCO I THINK FOR MOST COMPANIES IT WILL MEAN A SEVENMONTH DELAY ROLAND GILLIS SENIOR PORTFOLIO MANAGER FOR KEYSTONE CUSTODIAN FUNDS IN BOSTON SAW HIS PORTFOLIO'S 700000SHARE HOLDING IN PRESIDENT RIVERBOAT TAKE A BATH TO THE TUNE OF A 35 MILLION PAPER LOSS BUT HE'S NOT SELLING SELLING IT DOWN HERE WOULD BE KIND OF STUPID HE SAID I'M PRETTY CONFIDENT THAT THE ISSUE WILL GET BACK ON THE BALLOT IN THE SUMMER THE GOVERNOR IS A BIG SUPPORTER AND SO IS THE STATE LEGISLATURE IT'S A DELAY NOT A MORTAL BLOW HE SAID PRESIDENT RIVERBOAT HAS A LOT OF LICENSING POTENTIAL IN THE BIG LOUISIANA MARKET AND OPERATES IN IOWA WHERE BET LIMITATIONS RECENTLY WERE REMOVED DOUGLAS KASS DIRECTOR OF INSTITUTIONAL EQUITIES AT JW CHARLES/CSG IN BOCA RATON FLA THINKS THE STOCK IS A BUY AT YESTERDAY'S CLOSING PRICE OF 12 1/2 HE PUT OUT A SELL RECOMMENDATION IN NOVEMBER WHEN THE STOCK TRADED AROUND 30 A SHARE WE SEE A TARGET OF ABOUT 17 OR 18 A SHARE OVER THE NEXT SIX TO NINE MONTHS HE SAID BUT OTHER INVESTORS ALREADY SKITTISH ABOUT THE GROUP'S SHARP DECLINE IN RECENT WEEKS AND THE SPECTER OF A PROPOSED 4 GAMBLING REVENUE TAX BEING FLOATED BY THE WHITE HOUSE TO FINANCE WELFARE REFORM SOLD PRESIDENT RIVERBOAT AND OTHER EXPOSED ISSUES IN DROVES SMALLERCAP STATION CASINOS FELL 3 13/16 TO 14 3/4 FOR A 21 DIVE AND ARGOSY LOST 4 1/4 TO TRADE AT 19 3/4 AN 18 DROP AMONG THE MAJORS ON THE NEW YORK STOCK EXCHANGE PROMUS WHICH HAS TWO PLANNED MISSOURI PROJECTS FELL 3 1/4 TO 37 5/8 WHILE HILTON LOST 3 1/4 TO CLOSE AT 57 7/8 CAESARS WORLD WHICH HAS A JOINT VENTURE WITH CASINO MAGIC LOST 1 3/4 TO CLOSE AT 45 1/4 AND EQUIPMENT MAKER INTERNATIONAL GAME TECHNOLOGY FELL 3/4 TO 27 EVEN THOUGH THE FAILED MEASURE IS EXPECTED TO HAVE A MINIMAL EFFECT ON ITS EARNINGS IN THE NEXT FEW QUARTERS ANALYSTS SAID CASINO OPERATORS SAY THEY MUST NOW DECIDE WHETHER TO OPEN UP THEIR FACILITIES AS SCHEDULED WITH ONLY ACKNOWLEDGED GAMES OF SKILL OR TAKE A WAITANDSEE POSITION WE ARE STILL VERY MUCH INTERESTED IN OPERATING BOTH OF OUR CASINOS IN THE STATE AND ARE LOOKING FOR OUR BEST OPTIONS BETWEEN NOW AND THE NEXT REFERENDUM OPPORTUNITY PROMUS PRESIDENT PHILIP SATRE SAID GLENN CHRISTENSON STATION CASINOS' EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE COMPANY WILL SEEK STATE PERMISSION TO OPEN ITS ST CHARLES PROJECT NEAR ST LOUIS WITH GAMES OF SKILL AFTER ITS LICENSING INVESTIGATION IS COMPLETED ARGOSY PRESIDENT STEVE NORTON SAID IT MAKES MORE SENSE FOR HIS COMPANY AND OTHERS TO OPEN WITH BLACKJACK AND POKER IN KANSAS CITY RATHER THAN IN ST LOUIS WHICH FACES COMPETITION FROM FULLFLEDGED CASINOS ACROSS THE RIVER IN ILLINOISINCLUDING ONE OWNED BY ARGOSY HILTON AZTAR BOYD GAMING AND OTHERS SAID THEY'RE MULLING THEIR OPTIONS EVEN SOME COMPANIES WITH NO EXPOSURE IN MISSOURI SUCH AS CIRCUS CIRCUS ENTERPRISES NYSE WHICH FELL 1 3/8 TO 30 3/4 LOST GROUND IN YESTERDAY'S MARKET WHILE GAMBLING ANALYSTS AGREED THAT THE VOTE DOESN'T SIGNAL A GREAT SHIFT IN VOTER SENTIMENT IT DOES UNDERSCORE OTHER MAJOR ISSUES THIS IS A STRONG SIGNAL TO INVESTORS THAT POLITICAL UNCERTAINTIES WHETHER STATE OR FEDERAL HAVE BECOME THE MOST IMPORTANT FACTORS IN JUDGING GAMING STOCKS SAID DENNIS FORST OF HANCOCK INSTITUTIONAL EQUITY SERVICES IN LOS ANGELES ELSEWHERE TUESDAY'S BUYING ENTHUSIASM OVERRODE SLIGHTLY HIGHER RATES DRIVING SMALLCOMPANY STOCKS UP MODESTLY OVERALL THE NASDAQ COMPOSITE INDEX FELL 023 TO 75072 FOLLOWING TUESDAY'S 2354POINT JUMP 9404070123 940407 QUARTERLY MUTUAL FUNDS REVIEW WHY PANIC WHEN YOU CAN BUY KEY MANAGERS SEE UPSIDE BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL MADNESS IN THE MARKETS THE DOW JONES INDUSTRIAL AVERAGE LOSING NEARLY 400 POINTS ON AN EIGHTWEEK DIET BOND YIELDS SPURTING AS PRICES SINK THIS ISN'T ARMAGEDDON IT'S A BUYING OPPORTUNITY AT LEAST SO SAY THE MANAGERS OF SOME OF THE COUNTRY'S LARGEST MUTUAL FUNDS THE GREAT THING ABOUT THESE CORRECTIONS IS THAT YOU GET AN OPPORTUNITY TO BUY STOCKS YOU'VE WANTED TO BUY FOR A LONG TIME AT CHEAPER PRICES SAYS JEFFREY VINIK MANAGER OF FIDELITY MAGELLAN FUND THE NATION'S LARGEST AND MOST FAMOUS MUTUAL FUND MR VINIK DOESN'T NECESSARILY EXPECT THE MARKET TO FORGE AHEAD TO NEW HEIGHTS ALTHOUGH IT DID REBOUND STRONGLY TUESDAY AND WAS UP SLIGHTLY YESTERDAY HE CARES MORE ABOUT FINDING GREAT BUYS IN INDIVIDUAL STOCKS THAN ABOUT THE OVERALL MARKET SIMILARLY MICHAEL PRICE MANAGER OF MUTUAL SHARES FUND IN SHORT HILLS NJ FINDS A LOT OF VALUES TODAY THERE'S ONE STOCK AFTER ANOTHER WHERE WE CAN PUT SOME REAL MONEY HE SAYS HE'S BEEN DEPLOYING SOME OF THE CASH HOARD HE HAD BUILT UP FOR A RAINY DAY WHILE THE DOW JONES INDUSTRIAL AVERAGE IS DOWN 75 FROM ITS ENDOFJANUARY HIGH MR PRICE NOTES THAT MANY INDIVIDUAL STOCKS HAVE BEEN KNOCKED DOWN 20 TO 30 FROM THEIR PEAK LEVELS NOT ALL OF THOSE BRUISED ISSUES ARE WORTH BUYING BUT SOME OF THEM ARE EVEN MANAGERS WHO ALWAYS STAY FULLY INVESTED AND THEREFORE MUST SELL SOME STOCKS TO BUY OTHERS SEE OPPORTUNITIES IN THE MARKET'S RECENT TURMOIL WHEN STOCKS ARE MOVING RAPIDLY THE MANAGERS RESHAPE THEIR PORTFOLIOS TO TAKE ADVANTAGE OF OPPORTUNITIES THAT POP UP SUDDENLY JETTISONING STOCKS THAT LOOK FULLY PRICED AND BUYING GOOD COMPANIES THAT HAVE BEEN KNOCKED DOWN HERE'S WHAT THE MANAGERS AT FOUR OF THE NATION'S BIGGEST MUTUAL FUNDS ARE DOING WITH THEIR PORTFOLIOS NOW MR VINIK MANAGER OF THE MIGHTY MAGELLAN FUND FAR AND AWAY THE NATION'S LARGEST WITH MORE THAN 30 BILLION IN ASSETS LOVES MANUFACTURERS THE US HE SAYS HAS LOW CAPITAL COSTS A LOW CURRENCY AND LOW WAGES ON A WORLDWIDE BASIS THE LOWEST OF THE G7 OR GROUP OF SEVEN LEADING INDUSTRIALIZED COUNTRIES LOOK WHAT SOME JAPANESE COMPANIES ARE DOING MR VINIK URGES KIRIN BREWERY WILL IMPORT BEER AND BEER CANS FROM ANHEUSERBUSCH FUJI PHOTO FILM IS BUILDING A US PLANT HARDLY A DAY GOES BY WHERE YOU DON'T FIND MORE EVIDENCE OF THE COSTEFFECTIVENESS OF US MANUFACTURERS HE SAYS THIS IS THE MAJOR THEME IN THE ECONOMY AND THE STOCK MARKET FOR THE REST OF THE '90S CATERPILLAR THE PEORIA ILL MAKER OF EARTHMOVING EQUIPMENT IS A GREAT WAY TO PLAY THIS THEME MR VINIK SAYS COMPANIES NEED EARTHMOVING EQUIPMENT TO BUILD PLANTS MR VINIK CALLED CATERPILLAR SHARES A STEAL AT THEIR LATE MARCH LEVEL OF AROUND 110 WHAT IF THE MARKET PLOWS LOWER FRANKLY I'D LOVE TO SEE CAT UNDER 100 HE SAYS I'D MAKE IT ONE OF MY BIGGEST POSITIONS FOR TWO YEARS MR VINIK HAS BEEN SWEET ON SEMICONDUCTOR STOCKS AND HE'S NOT ABOUT TO CHANGE HIS OPINION NOW THE ELECTRONICS INDUSTRY IS THE DRIVER OF THE US ECONOMY HE SAYS COMPANIES ARE BASICALLY FIRING PEOPLE AND HIRING COMPUTERS THEY'RE BUYING PCS THEY'RE BUYING NETWORKING EQUIPMENT AND TELECOMMUNICATIONS EQUIPMENT AND ALL THIS STUFF USES SEMICONDUCTORS HIS PORTFOLIO HOLDS INTEL MOTOROLA AND NATIONAL SEMICONDUCTOR ANOTHER VINIK FAVORITE IS GOODYEAR TIRE & RUBBER DOWN ABOUT 18 FROM ITS HIGH OF 4925 YOU COULD ROLL INTO GOODYEAR STOCK YESTERDAY FOR 40625 A SHARE THAT'S ONLY ABOUT 11 TIMES FIDELITY'S ESTIMATE OF GOODYEAR'S 1994 EARNINGS MR VINIK HAS BEEN PADDING HIS ALREADY SIZABLE POSITION IN INTERNATIONAL BUSINESS MACHINES THERE'S BEEN A GOOD AMOUNT OF INSIDER BUYING LATELY INCLUDING CHIEF EXECUTIVE LOU GERSTNER HE SAYS BUSINESS IS ACTUALLY PRETTY GOOD RIGHT NOW EVEN IN THE MAINFRAMES THEIR COSTCUTTING IS RIGHT ON TARGET AND THEY ARE CONTINUING TO GENERATE GOOD CASH FLOW WHICH IS OFTEN A VERY POSITIVE INDICATOR IN TURNAROUND SITUATIONS ALSO ON HIS BUY LIST ARE SOME BELEAGUERED FINANCIAL STOCKS SUCH AS FEDERAL NATIONAL MORTGAGE ASSOCIATION AND GENERAL RE I HAVE BEEN VERY LIGHT ON FINANCIALS FOR A YEAR AND I'M STILL UNDERWEIGHTED HE SAYS BUT I THINK MOST OF THIS UPWARD MOVE IN INTEREST RATES IS BEHIND US ON THE OTHER HAND THE BOSTON MONEY MANAGER EXPRESSES CONTINUED ABHORRENCE OF CONSUMERNONDURABLE STOCKS HE TURNED NEGATIVE ON FOOD DRUG AND TOBACCO STOCKS BACK IN 1992 WHEN THEY WERE STILL POPULAR THE STOCKS HAVE HAD A TWOYEAR SLIDE BUT IT'S STILL VERY EARLY IN THEIR UNDERPERFORMANCE MR VINIK DECLARES BECAUSE LOTS OF TOUGH PRICE COMPETITION LIES AHEAD AS CRAZY AS IT SEEMS I THINK CATERPILLAR WHICH HAS DOUBLED OVER THE PAST YEAR IS A MUCH BETTER BUY THAN MERCK WHICH HAS FALLEN IN HALF HE LIKENS THE CONSUMER NONDURABLES WHICH WERE INVESTORS' FAVORITES IN THE LATE 1980S TO THE OIL STOCKS A DECADE EARLIER OR THE NIFTY FIFTY GROWTH STOCKS A DECADE BEFORE THAT IN EACH CASE HE SAYS THE ONCEREVERED GROUP UNDERPERFORMED THE MARKET FOR YEARS AFTER LOSING STATUS AS INVESTORS' DARLINGS PAUL VANCE MANAGER OF DEAN WITTER DIVIDEND GROWTH FUND SAYS HE'S BEEN DOING BUSINESS AS USUAL DURING THE STOCKMARKET SLIDE WE REMAIN PRETTY OPTIMISTIC TAKING A LONGTERM VIEW HE SAYS ONE REASON HE EXPECTS RELATIVELY BENIGN INFLATION THAT MEANS THAT BY THE END OF THE DECADE LONGTERM INTEREST RATES WILL BE BELOW CURRENT LEVELS HE SAYS MR VANCE ALSO LIKES THE COUNTRY'S DEMOGRAPHIC TRENDS A MUCH GREATER PORTION OF OUR POPULATION ARE BECOMING SAVERS AND THEREFORE INVESTORS HE SAYS HE SEES BUSINESSES' PRODUCTIVITY INCREASING AND COMPANIES BEING TAPPED ONLY FOR RELATIVELY LOW WAGE GAINS DON'T LOOK FOR ANY BIG STOCKPICKING THEMES OR INDUSTRY BETS FROM THIS NEW YORK MONEY MANAGER MR VANCE DESCRIBES HIMSELF AS STRICTLY A BOTTOMSUP MANAGER PICKING STOCKS ONE AT A TIME HE OWNS A LOT OF STOCKS RECENTLY 73 HIGH EVEN FOR HIM AND GIVES THEM ROUGHLY EQUAL WEIGHTS IN THE PORTFOLIO GENERALLY HIS FUND BUYS STOCKS WITH A DIVIDEND YIELD ABOVE THE YIELD ON THE STANDARD & POOR'S 500STOCK INDEX CURRENTLY 29 TO BOOST ITS YIELD THE FUND ALSO OWNS SOME TREASURY BONDS BY BUYING STOCKS DURING A DECLINE MR VANCE SAYS WE FIND RELATIVELY BETTER VALUES THAN WHEN EVERYBODY ELSE IS BUYING DURING THE RECENT UNPLEASANTNESS HE HAS ADDED TO HIS HOLDINGS IN IBM GENERAL MOTORS FORD MOTOR MINNESOTA MINING & MANUFACTURING AND GENERAL ELECTRIC I TEND TO STICK TO THE ONES THAT ARE REALLY BEING BATTERED THE MOST HE SAYS I THINK THEY PRESENT OPPORTUNITIES UNDERSTANDING THE SHORTTERM GYRATIONS OF THE STOCK MARKET IS A JOB FOR A PSYCHOANALYST NOT A SECURITIES ANALYST SAYS DAVID TRIPPLE MANAGER OF PIONEER II FUND IN BOSTON WE'RE ROTTEN PSYCHIATRISTS HE SAYS WE'VE NEVER SUCCEEDED IN GETTING THE MARKET ON THE COUCH AND UNDERSTANDING IT STOCKS HAVE BEEN AT HISTORICALLY EXPENSIVE PRICE LEVELS MR TRIPPLE SAYS SO YOU HAVE TO BE CAUTIOUS ABOUT EXPECTATIONS FOR RETURNS A PRICE DROP OF 5 TO 10 FROM SUCH ELEVATED LEVELS OUGHT NOT TO BE ENOUGH TO CHANGE YOUR OVERALL VIEW BUT ON A RIFLE SHOT BASIS MR TRIPPLE SAYS SOME STOCKS LOOK LIKE GOOD BUYS FOR EXAMPLE HE AND HIS COLLEAGUE FRANK BOGGAN ARE PARTIAL TO SERVICE CORP INTERNATIONAL BASED IN HOUSTON SERVICE CORP OWNS AND OPERATES FUNERAL PARLORS AND CEMETERIES IT'S A VERY FRAGMENTED BUSINESS SAYS MR BOGGAN VERY MOM AND POP SERVICE CORP'S MARKET SHARE IS ABOUT 12 AND GROWING HE SAYS ALLOWING THE COMPANY TO BENEFIT FROM ECONOMIES OF SCALE MESSRS TRIPPLE AND BOGGAN ARE FANS OF TECHNOLOGY STOCKS BECAUSE LIKE MR VINIK THEY EXPECT MORE AUTOMATION IN THE WORKPLACE IT LOOKS LIKE OUR GOVERNMENT IS DOING EVERYTHING IN ITS POWER TO MAKE IT MORE EXPENSIVE TO HAVE A WORKER ON YOUR PAYROLL SAYS MR BOGGAN THEY OWN HEWLETTPACKARD ADOBE SYSTEMS ANALOG DEVICES AND SYNOPTICS COMMUNICATIONS THE FINANCIAL SECTOR IS BARGAINHUNTING TURF FOR PIONEER II'S MANAGERS HERE THE VALUATIONS ARE REALLY COMPELLING MR BOGGAN SAYS WITH MANY STOCKS SELLING FOR ONLY SEVEN OR EIGHT TIMES ESTIMATED 1994 EARNINGS HE FAVORS REGIONAL BANKS SUCH AS FIRST TENNESSEE NATIONAL AND MUNICIPALBOND INSURERS AMBAC AND MBIA MR PRICE OF MUTUAL SHARES IS A BUSY MAN THIS WEEK AND NOT ONLY BECAUSE HE'S BUYING STOCKS AS THEY FALL HE'S ALSO REOPENING HIS FLAGSHIP FUND WHICH HAD BEEN CLOSED TO NEW INVESTORS SINCE 1989 WITH THE DOW JONES INDUSTRIAL AVERAGE BELOW 3700 YOU'VE GOT TO START BUYING MR PRICE SAYS SURE IT MIGHT FALL TO 3300 HE SAYS BUT THE CORRECTION HAS LET THE AIR OUT FROM OVERINFLATED STOCKS AND CREATED A MUCH HEALTHIER ENVIRONMENT FURTHERMORE HE SAYS TAKEOVER ACTIVITY HAS REVIVED INTEREST RATES ARE STILL AT REASONABLE LEVELS BANK LENDING IS PICKING UP AND THE CLINTON ADMINISTRATION IS FAIRLY PROBUSINESS FOR A DEMOCRATIC ADMINISTRATION THOSE ARE ALL PLUSES FOR INVESTORS MR PRICE MADE HIS REPUTATION IN LARGE PART ON BANKRUPTCY STOCKS AND COMPLICATED SPECIAL SITUATION INVESTING BUT AT THE MOMENT HE'S DOING PLAIN OLD BARGAINHUNTING TAKE WOOLWORTH FOR EXAMPLE PRACTICALLY NOBODY ELSE WILL THE STOCK PLUNGED ABOUT 25 AFTER THE COMPANY ANNOUNCED IT IS INVESTIGATING POSSIBLE ACCOUNTING IRREGULARITIES THAT BROUGHT THE STOCK INTO THE MIDTEENS COMPARED WITH 36 A COUPLE OF YEARS AGO AT TODAY'S LEVEL MR PRICE SAYS IT'S JUST TOO CHEAP TO RESIST AMERICAN EXPRESS IS MUCH TOO CHEAP HE SAYS AND IS WISELY SPINNING OFF ITS FEASTORFAMINE BROKERAGEHOUSE UNIT LEHMAN BROTHERS SEARS ROEBUCK LOOKS GOOD TO HIM FOR ITS PARTIAL OWNERSHIP OF ALLSTATE AND FOR ITS MERCHANDISING COMEBACK AND HE LIKES LITTON INDUSTRIES ONCE A BLOATED CONGLOMERATE NOW SLIMMED DOWN BASICALLY TO SHIPBUILDING AND INDUSTRIAL AUTOMATION MR PRICE IS ALSO DRAWN TO BIG DRUG STOCKS MAKING NEW LOWS SURE HE SAYS BUSINESS IS TOUGH BUT MANY OF THE STOCKS ARE SELLING FOR ONLY 12 TIMES ESTIMATED EARNINGS AND HAVE GREAT BALANCE SHEETS 9404070122 940407 CREDIT MARKETS TREASURY 30YEAR BOND ENDS LITTLE CHANGED AFTER EARLY RALLY TRIGGERS MODERATE SELLOFF BY THOMAS D LAURICELLA AND LAUREN YOUNG STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRICES OF US TREASURY SECURITIES MADE WIDE SWINGS YESTERDAY BUT ENDED LITTLE CHANGED AS THE WOBBLY BOND MARKET STRUGGLED TO REGAIN ITS FOOTING FOLLOWING ITS RECENT SELLOFF MARKET PARTICIPANTS SAID TRADING WAS A BIT MORE BALANCED YESTERDAY THAN IN RECENT SESSIONS WHICH HAVE BEEN DOMINATED EITHER BY WAVES OF SELLING OR IN THE CASE OF TUESDAY'S RALLY BUYING THE MARKET SEEMS LIKE IT IS TRYING TO BALANCE ITSELF SAID CARY LEAHEY SENIOR FINANCIAL ECONOMIST AT LEHMAN GOVERNMENT SECURITIES BUT WHILE BOND TRADING HAS SHOWN SIGNS OF CALMING DOWN INVESTORS REMAIN WARY OF COMMITTING SIGNIFICANT AMOUNTS OF NEW CASH TO THE BATTERED MARKET EVERYBODY IS LOOKING FOR SOME STABILITY SAID DENNIS BUSHE MANAGING DIRECTOR AT PRUDENTIAL INVESTMENT ADVISORS SO FAR THE MARKET HAS NOT HAD THE ABILITY TO SUSTAIN A RALLY FOR MORE THAN ONE DAY AND THAT'S A PROBLEM THE BENCHMARK 30YEAR TREASURY BOND ROSE JUST 1/32 TO 87 29/32 TO YIELD 724 VIRTUALLY UNCHANGED FROM TUESDAY HELPING TO PROVIDE A DEGREE OF SUPPORT TO SHORTTERM TREASURYS YESTERDAY WAS A WASHINGTON POST ARTICLE QUOTING AN UNNAMED FEDERAL RESERVE OFFICIAL AS INDICATING THAT AS LONG AS THE STOCK AND BOND MARKETS REMAIN VOLATILE THE FED WILL HOLD OFF RAISING INTEREST RATES AGAIN MOST MARKET PARTICIPANTS WEREN'T EXPECTING A NEARTERM TIGHTENING OF MONETARY POLICY ANYWAY BUT THE REPORT NEVERTHELESS PROMPTED DEALERS TO TAKE PRICES HIGHER IN EARLY TRADING BUT THE HIGHER PRICES PRODUCED BY THE MORNING RALLY WERE USED AS A LAUNCHING PAD FOR TRADERS AND INVESTORS WHO WANTED TO SELL TREASURYS THE SELLING PICKED UP STEAM AS THE MORNING WORE ON AND AT ONE STAGE THE PRICE OF THE TREASURY'S 30YEAR BOND WAS DOWN 7/8 POINT AFTER RISING NEARLY 1/2 POINT EARLIER DURING THE SELLOFF SOME TRADERS REPORTED THAT INVESTORS WERE SHIFTING OUT OF TREASURYS AND INTO MORTGAGEBACKED SECURITIES MORTGAGES HAVE TAKEN AN EVEN WORSE BEATING THAN TREASURYS IN RECENT WEEKS AND WERE WIDELY VIEWED AS ATTRACTIVE IN PRICE AND AS OFTEN HAPPENS IN THE FINANCIAL MARKETS TRADERS BEGAN TO RETHINK THEIR INITIAL IMPRESSION OF THE POST ARTICLE AFTER TAKING A SECOND LOOK AT THE STORY TRADERS SAID THAT IF THE FED WERE TO HOLD OFF TIGHTENING MONETARY POLICY SIMPLY BECAUSE THE MARKETS WERE VOLATILE THE FED WOULDN'T BE ACCOMPLISHING ITS PRIMARY GOAL OF FIGHTING INFLATION I DON'T THINK IT'S A RISK YET BUT THEY SHOULD KEEP THEIR EYE ON THE BALL WHICH IS KEEPING INFLATION LOW AND GROWTH STEADY SAID LEHMAN'S MR LEAHY IN ADDITION MARKET PARTICIPANTS SAID THE STORY RAISED THE SPECTER OF THE FED'S CAVING IN TO POLITICAL PRESSURE IT DOESN'T ADD A LOT OF CONFIDENCE TO THE MARKET SAID MR BUSHE OF PRUDENTIAL IF THAT SCENARIO WERE TO PLAY ITSELF OUT LONGTERM INTEREST RATES WOULD RESUME THEIR CLIMB PLAYERS SAID THE BONDMARKET VIGILANTES WILL DO THE FED'S JOB IF THEY DON'T BELIEVE THE FED IS HANDLING IT RIGHT SAID MATTHEW ALEXY MARKET STRATEGIST AT CS FIRST BOSTON INC DESPITE THE MARKET'S CONCERNS THE SELLING ABATED BY MIDAFTERNOON ONCE IT BECAME CLEAR THAT THE BOND MARKET WASN'T GOING TO COLLAPSE AND TRADERS BEGAN TO CLOSE OUT SHORT POSITIONS A TRADER TAKES A SHORT POSITION BY SELLING A BORROWED SECURITY IN THE HOPES OF REPLACING IT LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE ON THE BACK OF THE SHORT COVERING THE BOND MARKET WAS ABLE TO RECOUP ITS EARLY LOSSES CORPORATE NEW ISSUANCE REMAINED AT A TRICKLE MEANWHILE SOME JUNK BONDS TRADED DOWN ON NEWS OF THE DEFEATED RIVERBOATGAMBLING REFERENDUM IN MISSOURI AND USAIR INC'S RATINGS DOWNGRADE BY MOODY'S INVESTORS SERVICE INC PRICES IN THE JUNKBOND MARKET ENDED THE DAY UNCHANGED IN LIGHT TRADING VF CORP AN APPAREL MANUFACTURER IN READING PA SOLD 100 MILLION OF 10YEAR NOTES WITH A 76 COUPON AT 99857 TO YIELD 762 THE ISSUE IS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY STANDARD & POOR'S CORP AND WAS SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO STATION CASINOS INC AND OTHER RIVERBOAT OPERATORS ARE EXPECTED TO MOVE AHEAD WITH PLANS FOR RIVERBOAT GAMBLING IN MISSOURI DESPITE TUESDAY'S FAILED REFERENDUM TO ALLOW SLOT MACHINES IN THE STATE'S FLOATING CASINOS BUT THE BOND MARKET WASN'T OPTIMISTIC AS THE DEBT OF RIVERBOAT OPERATORS TRADED DOWN ON THE NEWS STATION CASINOS' 9 5/8 COUPON SENIOR SUBORDINATED NOTES MATURING IN 2003 TRADED DOWN SEVEN POINTS OR 70 FOR A BOND WITH A 1000 FACE VALUE TO 90 THE YIELD ROSE TO 1141 FROM 1013 A TRADER SAID PRESIDENT RIVERBOAT CASINOS INC'S 11 3/4 COUPON SENIOR SUBORDINATED MATURING IN 2001 TRADED DOWN BY NINE POINTS OR 90 FOR A BOND WITH A 1000 FACE VALUE TO 91 A TRADER SAID THE YIELD ROSE TO 1371 FROM 1152 A TRADER SAID MISSOURI VOTERS NARROWLY DEFEATED A CONSTITUTIONAL AMENDMENT THAT WOULD HAVE ALLOWED SLOT MACHINES AND OTHER GAMES OF CHANCE ON RIVERBOATS RIVERBOAT POKER AND OTHER GAMES OF SKILL AREN'T AFFECTED BY THE VOTE THE FAILED REFERENDUM HOWEVER ISN'T EXPECTED TO HAVE AN EFFECT ON STATION CASINOS' PLANNED 80 MILLION DEBT OFFERING SAID GLENN CHRISTENSON STATION CASINOS' CHIEF FINANCIAL OFFICER THE JUNKBOND OFFERING WAS DELAYED EARLIER THIS MONTH DUE TO MARKET CONDITIONS CLEARLY WITH SLOT MACHINES ON BOARD THEY WOULD HAVE BEEN MUCH STRONGER BONDS MR CHRISTENSON SAID BUT THE COMPANY DOESN'T NEED THE FUNDS AT THIS TIME AND THE OPENING OF A SITE IN LAS VEGAS THIS SUMMER WILL BRING IN ADDITIONAL CASH FLOW HE SAID CASINO OPERATORS AND INDUSTRY ANALYSTS ARE STILL BETTING THAT A GAMES OF CHANCE REFERENDUM WILL BE PASSED IN AUGUST OR NOVEMBER BALLOTING MEANWHILE MOODY'S DOWNGRADED USAIR'S LONGTERM SENIOR UNSECURED RATING TO SINGLEB2 FROM BA3 AND ITS SENIOR SECURED RATING TO SINGLEB1 FROM BA2 IN ADDITION MOODY'S SAID THE PREFERREDSTOCK RATING OF ITS PARENT COMPANY USAIR GROUP WAS LOWERED TO CAA FROM SINGLEB3 ABOUT 25 BILLION IN LONGTERM DEBT IS AFFECTED THE RATING AGENCY SAID THE AIRLINE'S DEBT OUTSTANDING TRADED DOWN TEMPORARILY BUT RETURNED TO NEAR TUESDAY'S LEVELS TRADERS SAID ADDING THAT THE DOWNGRADE WAS EXPECTED THE RATING ACTIONS WERE TAKEN BECAUSE OF THE LIKELIHOOD THAT INTENSE PRICE COMPETITION IN USAIR'S MAIN MARKETS WILL RESULT IN A CONTINUATION OF POOR OPERATING RESULTS OVER THE FORESEEABLE FUTURE UNTIL SUCH TIME AS ITS COSTS CAN BE REDUCED MOODY'S SAID IN A NEWS RELEASE IN ADDITION MOODY'S ALSO CITED UNCERTAINTY ABOUT USAIR'S CURRENT NEGOTIATIONS WITH ITS EMPLOYEES WHO ARE SEEKING WAGE AND BENEFIT CONCESSIONS MUNICIPAL BONDS FINISHED WITH GAINS OF 1/2 POINT OR MORE AFTER A ROLLER COASTER RIDE MUNIS CLIMBED IN EARLY TRADING LOST SOME GROUND IN THE AFTERNOON WHEN TREASURYS FELL THEN BOUNCED BACK BEFORE THE CLOSE AS GOVERNMENT BONDS RECOVERED HOWEVER THERE WASN'T MUCH TWOSIDED TRADING IN THE VOLATILE MARKET AND FEW BIDS AND OFFERS WERE LISTED ON MUNI QUOTE SYSTEMS THE DIFFICULT MARKET CONDITIONS AREN'T SURPRISING GIVEN THAT MANY MUNI ISSUES PLUMMETED MORE THAN 10 POINTS IN THE WEEKS FOLLOWING THE FEDERAL RESERVE'S FEB 4 INTERESTRATE TIGHTENING AND HAVE YET TO STABILIZE A NEW YORKBASED TRADER SAID THAT THE ONE BRIGHT SPOT YESTERDAY WAS THE DISAPPEARANCE OF THE SEEMINGLY ENDLESS SELLING LISTS THAT FLOODED THE MARKET FOR THE PAST TWO MONTHS MORTGAGES WERE UP 3/8 POINT OR BETTER IN LATE TRADING TRADERS SAID RETAIL INVESTORS MADE A GOOD SHOWING DURING THE SESSION AS WAS THE CASE TUESDAY BUT IT APPEARED THAT MORE MONEY MANAGERS WERE BUYING RATHER THAN JUST BANKS OR INSURANCE COMPANIES THE IMPLICATION WAS THAT SOME OF THE MOST IMPORTANT RETAIL INVESTORSMUTUAL FUNDSWERE RETURNING THE ATTRACTION TO BUYERS MAY BE THAT YIELDS ON CURRENTCOUPON MORTGAGES THOSE BONDS PRICED BELOW PAR OR NEAR PAR AND NOW IN PRODUCTION BY MORTGAGE BANKERS ARE TRADING AT ABOUT THREEYEAR HIGHS OVER COMPARABLE TREASURYS ACCORDING TO THE FIXEDINCOME RESEARCH DEPARTMENT AT PRUDENTIAL SECURITIES ONE NEW REALESTATE MORTGAGEINVESTMENT CONDUIT WAS BROUGHT TO MARKET FEDERAL HOME LOAN MORTGAGE CORP'S SERIES 1725 A 335 MILLION DEAL BACKED BY FREDDIE MAC'S 30YEAR 7 MORTGAGE SECURITIES AND UNDERWRITTEN BY MORGAN STANLEY & CO IN LATE TRADING THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 8S FOR APRIL DELIVERY WAS UP 17/32 AT 100 12/32 THE FREDDIE MAC GOLD 8S FOR APRIL WAS UP 15/32 AT 100 27/32 AND THE FEDERAL NATIONAL MORTGAGE ASSOCIATION 8S FOR APRIL WAS UP 15/32 AT 100 23/32 THE TREASURY 5 7/8 10YEAR NOTE WAS DOWN 1/32 AT 92 18/32 9404070121 940407 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 5/8 HIGH 3 3/8 LOW 3 3/8 NEAR CLOSING BID 3 1/2 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 367 30 TO 44 DAYS 370 45 TO 59 DAYS 378 60 TO 89 DAYS 390 90 TO 119 DAYS 4 120 TO 149 DAYS 408 150 TO 179 DAYS 418 180 TO 239 DAYS 430 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 377 30 DAYS 387 60 DAYS 399 90 DAYS CERTIFICATES OF DEPOSIT 310 ONE MONTH 325 TWO MONTHS 338 THREE MONTHS 375 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 375 ONE MONTH 395 THREE MONTHS 433 SIX MONTHS BANKERS ACCEPTANCES 365 30 DAYS 380 60 DAYS 390 90 DAYS 4 120 DAYS 410 150 DAYS 420 180 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 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 573 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 836 60 DAYS 843 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 823 60 DAYS 831 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 615 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 288 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404070120 940407 CORPORATE FOCUS NISSAN FINDS THE ROAD IS ROUGH DESPITE COST CUTTING STRONG YEN AND ECONOMIC DOWNTURN BLOCK AMBITIOUS RESTRUCTURING PLAN BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AS LOSSES WIDEN AT NISSAN MOTOR CO THE STRUGGLING JAPANESE AUTO MAKER IS FINDING THE ROAD TO RECOVERY FAR BUMPIER THAN EXPECTED ITS AMBITIOUS RESTRUCTURING PLAN TOUTED AS ONE OF CORPORATE JAPAN'S MOST DRASTIC WHEN UNVEILED LAST YEAR HAS RUN INTO TWO ROADBLOCKS A STRONG YEN AND AN ECONOMIC DOWNTURN IN JAPAN THAT IS DRAGGING ON MUCH LONGER THAN ANTICIPATED DESPITE COSTCUTTING STEPS EXECUTIVES SAY NISSAN'S CONSOLIDATED PRETAX LOSS FOR THE FISCAL YEAR THAT ENDED LAST THURSDAY WILL BE WIDER THAN THE PREVIOUS FISCAL YEAR'S 1018 BILLION YEN 1032 MILLION RESULTS FOR THE JUSTENDED FISCAL YEAR ARE GOING TO BE THE WORST OF ALL SAID NISSAN MANAGING DIRECTOR KOICHI TAKAGI HE DECLINED TO FORECAST EXACTLY HOW DEEP THE NISSAN GROUP WILL BE IN THE RED THESE ARE INDEED HARD TIMES FOR NISSAN ANALYSTS SAY JAPAN'S ECONOMIC SLUMP WILL CAUSE 1994 SALES TO FALL AS MUCH AS 20 SHORT OF THE PROJECTIONS NISSAN SET WHEN IT ANNOUNCED ITS RESTRUCTURING PROGRAM LAST YEAR MEANTIME THE STRONG YEN IS HURTING NISSAN'S EXPORTS AND ERODING ITS REVENUE EARNED ABROAD EVEN IN ITS BUOYANT US OPERATIONS AND ALL THIS COMES AFTER NISSAN LAST YEAR REPORTED ITS FIRST PARENTCOMPANY LOSS SINCE THE COMPANY WAS LISTED ON THE TOKYO STOCK EXCHANGE IN 1951 AS A RESULT NISSAN OFFICIALS SAY THAT THEIR DRACONIAN RESTRUCTURING PLAN MUST GET A LOT TOUGHER IF THEY ARE TO PULL THEMSELVES OUT OF THE MIRE WE STILL HAVEN'T DONE ENOUGH CONCEDES MR TAKAGI JAPAN'S NO 2 AUTO MAKER HAS SHARPLY REDUCED THE VARIETY OF CARS IN ITS LINEUP WHICH ONCE EXCEEDED THE RANGE OFFERED BY MUCHLARGER TOYOTA MOTOR CORP NISSAN ALSO IS PRESSURING SUPPLIERS TO LOWER PRICES IT IS TELLING WORKERS TO TAKE MORE FURLOUGH TIME IT IS BOOSTING PRODUCTION ABROAD AND MAKING REPEATED REDUCTIONS IN THE LONG LIST OF PARTS IT USES TO PRODUCE ITS CARS NISSAN RECENTLY ANNOUNCED IT HAS DUMPED 200 MILLION IN LAND HOLDINGS AS PART OF WHAT BARING SECURITIES ANALYST ENDA CLARKE CALLS AN ALL OUT EFFORT TO BREAK EVEN ON A PARENTCOMPANY LEVEL DESPITE OPERATING LOSSES BUT MANY ARE SKEPTICAL THAT NISSAN WILL PULL OUT OF ITS SLUMP SOON ANALYSTS SAY THE COMPANY STILL HAS FAR TOO MANY PLANTS AND EMPLOYEES FOR THE GLUTTED DOMESTIC MARKET AND DOMESTIC SALES SHOW LITTLE SIGN OF REVIVING STATISTICS RELEASED THIS WEEK SHOWED THAT NISSAN'S SALES IN JAPAN DURING MARCH FELL 11 FROM A YEAR EARLIER THE ONLY DOUBLEDIGIT DECLINE AMONG JAPAN'S TOP FIVE AUTO MAKERS TAKASHI WAGURI HEAD OF TAIYO NISSAN A DEALERSHIP IN DOWNTOWN TOKYO SAYS SALES ARE LESS THAN HALF OF WHAT THEY WERE AT THEIR PEAK THEY SAY THINGS WILL START LOOKING UP IN THE FALL MR WAGURI SAYS I WONDER THE US IS THE ONE BRIGHT SPOT IN NISSAN'S GLOBAL OPERATIONS BUT EVEN THERE THE VALUE OF NISSAN'S EFFORTS IS BEING SAPPED BY THE STRONG YEN WHEN NISSAN DREW UP ITS RECOVERY PLAN LAST YEAR IT ASSUMED AN EXCHANGE RATE OF ROUGHLY 120 YEN TO THE DOLLAR BUT THE DOLLAR IS CURRENTLY FETCHING AROUND 104 YEN WHICH HAS UNDERCUT THE VALUE OF NISSAN'S US EARNINGS WHEN REPATRIATED TO JAPAN THAT'S BAD ENOUGH BUT THE SOARING YEN PROVIDES A DOUBLEWHAMMY BY MAKING NISSAN'S EXPORTS MORE EXPENSIVE AND LESS COMPETITIVE IN AMERICA BECAUSE THE YEN SHOWS NO SIGN OF RETREATING ANALYSTS SAY THE COMPANY HAS TO FURTHER BOOST US PRODUCTION IN A EFFORT TO AVOID PAINFUL PRICE INCREASES ON EXPORTS NISSAN CARS PRODUCED IN THE US JUMPED TO 386000 UNITS IN 1993 FROM 265000 UNITS IN 1991 LARGELY BECAUSE OF THE POPULARITY OF ITS ALTIMA MODEL THE SPOKESMAN ESTIMATED US SALES WOULD CLEAR 400000 THIS YEAR NISSAN'S MR TAKAGI SAYS THE COMPANY IS HAPPY WITH ITS US OPERATIONS WHICH HE DESCRIBES AS PROFITABLE IN DOLLAR TERMS BUT THE US OPERATIONS HAVE ONLY A LIMITED IMPACT ON NISSAN'S BOTTOM LINE REVENUES FROM AMERICA AREN'T ENOUGH TO OFFSET NISSAN'S OTHER TROUBLES SAID KOJI ENDO ANALYST AT LEHMAN BROTHERS JAPAN INC AND ANALYSTS ARE SKEPTICAL THAT NISSAN'S RECENTLY ANNOUNCED PLAN TO BUY MORE US AUTO PARTS WILL MUCH ALTER THE SITUATION THEY BELIEVE THAT THE PLAN UNDER WHICH NISSAN WILL INCREASE ITS PURCHASE OF USMADE PARTS BY 70 OVER FIVE YEARS WAS DONE MORE AS A POLITICAL GESTURE TO HELP DEFUSE USJAPAN ECONOMIC TENSIONS THAN FOR AN UNDERLYING BUSINESS PURPOSE NISSAN'S GLOBAL TROUBLES EXTEND TO EUROPE WHERE A LONGRUNNING ECONOMIC DOWNTURN HAS HURT DEMAND JUST AS NEW NISSAN PRODUCTION OPERATIONS WERE COMING ON STREAM EXCESS INVENTORIES AT ITS UK PLANT CAUSED THE COMPANY TO REDUCE A SHIFT FOR A PERIOD THOUGH NISSAN OFFICIALS SAY THAT MOST OF THE SHIFT IS NOW BACK ON THE LINE IN SPAIN ANALYSTS SAY NISSAN'S SUBSIDIARY IS BLEEDING RED INK WHICH IS PROVING HARD TO STAUNCH WHEN RIVAL JAPANESE CAR MAKER SUZUKI MOTOR CO TRIED TO LAY OFF WORKERS AT ITS SPANISH SUBSIDIARY WORKERS RIOTED AN OMINOUS PRECEDENT FOR NISSAN EXECUTIVES WHO SAY THEY NEED TO SCALE BACK THEIR SPANISH OPERATIONS THE OUTLOOK FOR THE EUROPEAN MARKET IS NOT VERY GOOD SAID BARING'S MR CLARKE NOWHERE IS THE SITUATION MORE DIFFICULT THAN AT HOME IN JAPAN THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION SAID AUTO PRODUCTION IN FEBRUARY FELL 14 OVER THE YEARAGO PERIOD THE SEVENTEENTH STRAIGHT MONTH OF DECLINES AMID THE NATION'S ECONOMIC SLUMP CONSUMERS ARE SHOWING LITTLE INTEREST IN NEW CARS OF ANY MAKE THUS NISSAN IS LOOKING TO CUT ITS OPERATIONS IN JAPAN ANYWAY IT CAN THAT PROPOSITION IS COMPLICATED HOWEVER BY THE CULTURAL BARRIERS IN JAPAN AGAINST LAYING OFF EXCESS WORKERS STILL NISSAN EXECUTIVES SAY THEY HAVE OTHER OPTIONS WHILE EXECUTIVES DECLINED TO BE SPECIFIC ABOUT WHERE THEY WOULD CUT NEXT ANALYSTS SAY RECENT MOVES SHOW THE COMPANY UNDERSTANDS THE NEED TO CHANGE ITS BLOATED STRUCTURE NISSAN SAID RECENTLY IT PLANS TO REDUCE BY OVER 30 THE MORE THAN TWO DOZEN VARIETIES OF CAR CHASSIS IT PRODUCES THAT STEP ALONE WILL SAVE IT NEARLY 1 BILLION OVER THE NEXT FOUR YEARS EXECUTIVES SAY THAT ON A GLOBAL BASIS CONSOLIDATED EARNINGS WILL NOT BE BACK INTO THE BLACK UNTIL THE YEAR ENDING MARCH 1996 ANALYSTS GENERALLY AGREE SAYING IT WILL TAKE AT LEAST THAT LONG TO REDUCE THE OVERCAPACITY AND EXCESS STAFFING THAT ARE AT THE CORE OF THE COMPANY'S DIFFICULTIES ANALYSTS SAY THOSE HEADACHES ARE A DIRECT RESULT OF PAST EXCESSES THE COMPANY EXPANDED VORACIOUSLY IN THE LATE 1980S IN WHAT SOME INDUSTRY OBSERVERS DESCRIBE AS AN EFFORT TO CATCH UP WITH TOYOTA JAPAN'S LARGEST CAR MAKER THOSE HEADY DAYS ARE LONG PAST AND EXECUTIVES ARE CAUTIOUS WHEN TALKING ABOUT THEIR HOPES THAT THE DOMESTIC MARKET WILL RECOVER BY THE END OF THE CURRENT YEAR AFTER ALL NISSAN'S LEADERS HAVE BEEN DISAPPOINTED BEFORE WHEN EXECUTIVES WERE DRAWING UP RECOVERY PLANS EARLY LAST YEAR THEY HADN'T COUNTED ON THE CLINTON ADMINISTRATION'S SUBSEQUENT BACKING OF A STRONG YEN POLICY AS A MEANS OF NARROWING JAPAN'S TRADE SURPLUS THEY WERE ALREADY STRUGGLING BEFORE THE YEN ROSE SAID JONATHAN DOBSON AN ANALYST AT JARDINE FLEMING SECURITIES IN TOKYO THEN THEY HAD THE CARPET PULLED OUT FROM UNDER THEM 9404070119 940407 PRICING HEALTH CARE QUOTAS IN CLINTON'S HEALTH PLAN BY JOSHUA ABRAMOWITZ ON THE OFF CHANCE THAT YOU'RE FLIPPING THROUGH THE CLINTON HEALTH CARE BILL AND COME ACROSS PART TWO OF POINT C OF SECTION 3013 UNDER SUBPART B OF PART I OF SUBTITLE A OF TITLE III YOU'LL BE IN FOR A LITTLE SURPRISE QUOTAS HAVE COME TO MEDICINE IF THE CLINTON ADMINISTRATION HAS ITS WAY MEDICAL STUDENTS WILL BE CHOSEN TO TRAIN FOR SPECIALIST POSITIONS SURGERY AND ANESTHESIOLOGY FOR INSTANCE IN PART ON THE BASIS OF THEIR RACE AND ETHNICITY THE UNPUBLICIZED QUOTA PLAN FITS NEATLY INTO THE CLINTONS' HEALTH CARE STRATEGY THE ADMINISTRATION BELIEVES THAT TOO MANY DOCTORS ARE CHOOSING TO BECOME SPECIALISTS BECAUSE SPECIALIST POSITIONS TEND TO BE MORE HIGHLY PAID AND MORE PRESTIGIOUS AND NOT ENOUGH ARE CHOOSING TO BECOME PRIMARY CARE PHYSICIANS SUCH AS FAMILY DOCTORS AND PEDIATRICIANS THAT IN ITSELF MAY BE BAD SINCE CUTTING THE NUMBER OF SPECIALISTS SO DRAMATICALLY COULD REDUCE THE QUALITY OF HEALTH CARE BUT IT GETS WORSE THE AFOREMENTIONED COUNCIL WOULD DECIDE WHICH TRAINING PROGRAMS WERE TO BE ALLOTTED STUDENTS AND HOW MANY STUDENTS EACH WOULD RECEIVE IF A TRAINING PROGRAM FAILED TO STAY IN THE COUNCIL'S GOOD GRACES AND SINCE THE COUNCIL IS ADMINISTRATIONAPPOINTED THE PRESIDENT'S GOOD GRACES AS WELL IT WOULD RISK LOSING STUDENTS WHEN DECIDING HOW MANY PLACES TO ALLOT TO EACH TRAINING PROGRAM THE NATIONAL COUNCIL WOULD ACCORDING TO THE BILL DETERMINE THE NUMBER OF RACIAL AND ETHNIC MINORITIES CURRENTLY ENROLLED IN THAT PROGRAM THE BILL IS QUITE CLEAR IN ALLOTTING SPACES THE NATIONAL COUNCIL SHALL CONSIDER THE EXTENT TO WHICH THE POPULATION OF TRAINING PARTICIPANTS IN THE PROGRAM INCLUDES TRAINING PARTICIPANTS WHO ARE MEMBERS OF RACIAL OR ETHNIC MINORITY GROUPS AND ALSO WITH RESPECT TO A RACIAL OR ETHNIC GROUP REPRESENTED AMONG THE TRAINING PARTICIPANTS THE EXTENT TO WHICH THE GROUP IS UNDERREPRESENTED IN THE FIELD OF MEDICINE GENERALLY AND IN THE VARIOUS MEDICAL SPECIALTIES IF A PROGRAM DOESN'T HAVE ENOUGH MINORITIES TO PLEASE THE COUNCIL IT WOULD RISK RECEIVING A REDUCED NUMBER OF STUDENT SLOTS OR PERHAPS NONE AT ALL TRAINING PROGRAMS WOULD QUICKLY ADD UP TWO AND TWO AND REALIZE THAT THERE IS ONLY ONE GUARANTEED WAY TO STAY AROUND QUOTAS BUT ISN'T THERE AFFIRMATIVE ACTION IN MEDICAL SCHOOLS ALREADY SURE IN FACT THE FAMOUS SUPREME COURT CASE REGENTS OF THE UNIVERSITY OF CALIFORNIA V BAKKE CONCERNED A MEDICAL SCHOOL'S POLICY OF GIVING PREFERENTIAL TREATMENT TO MINORITY APPLICANTS YET THE CLINTONS' PLAN WOULD MAKE AFFIRMATIVE ACTION MORE SEVERE CURRENTLY TRAINING PROGRAMS TRY TO RECRUIT MINORITIES UNDER THE CLINTON PROPOSAL IT APPEARS THAT THESE PROGRAMS WILL BE REQUIRED TO RECRUIT MINORITIES NO MATTER WHAT THE COST OR RISK LOSING STUDENTS ALTOGETHER THE RESULTS COULD BE MESSY AS WITH SO MANY OTHER QUOTA PROGRAMS THE CLINTON PLAN WOULD MAKE MINORITY DOCTORS UNCOMFORTABLE AND WHITE DOCTORS RESENTFUL MEANWHILE THE PROPORTION OF LESS QUALIFIED SPECIALISTS MIGHT INCREASE THREATENING THE QUALITY OF MEDICAL CARE AND SADDEST OF ALL PATIENTS WORRIED ABOUT THIS DANGER MIGHT AVOID MINORITY SPECIALISTS ALTOGETHER ONE OF THE MOST POPULAR ARGUMENTS FOR MEDICAL QUOTAS IS THAT MINORITY DOCTORS ARE MORE LIKELY TO SERVE MINORITY PATIENTS BUT THIS IN FACT IS AN ARGUMENT AGAINST THE CLINTONS' PLAN FOR IF MORE MINORITIES BECOME SPECIALISTS FEWER WILL BECOME PRIMARY CARE DOCTORS AND IT IS THESE PRIMARY CARE PHYSICIANS WITH WHOM PATIENTS WILL MOST CLOSELY INTERACT IN THE HUMANITIES AND IN THE SOCIAL SCIENCES THERE IS FREQUENTLY ANOTHER JUSTIFICATION FOR QUOTAS IF THEY SEEM TO FAVOR LESS QUALIFIED PEOPLE PROPONENTS ASSERT IT'S BECAUSE THE WORD QUALIFIED HAS BEEN USED IN A NARROW WHITE MALE MANNER WE NEED TO THINK MORE BROADLY THE ARGUMENT GOES BUT WOULD THESE SAME PEOPLE ARGUE THAT THERE IS SAY A WHITE MALE WAY TO PERFORM A TRIPLE BYPASS OPERATION CERTAINLY THEY WOULD NOT THIS TRULY IS A CASE IN WHICH WE ARE ALL THE SAME UNDERNEATH AS WITH THE CLINTONS' HEALTH PLAN OVERALL THE QUOTA PROPOSAL MAY BE NOBLE IN ITS INTENTIONS BUT IT WOULD SURELY BE HARMFUL IN PRACTICE YET ANOTHER REASON WHY THE ILLCONCEIVED BILL NEEDS SERIOUS RECONSIDERATION MR ABRAMOWITZ IS MANAGING EDITOR OF THE PUBLIC INTEREST 9404070118 940407 INPUT/OUTPUT SETS STOCK SPLIT STAFFORD TEXAS INPUT/OUTPUT INC SAID ITS DIRECTORS AUTHORIZED A 2FOR1 SPLIT OF ITS COMMON STOCK THE SEISMICINSTRUMENTS COMPANY SAID THE SPLIT WILL APPLY TO SHARES OF RECORD AT THE CLOSE OF BUSINESS APRIL 18 WITH DISTRIBUTION OF ADDITIONAL SHARES ON MAY 4 A SPOKESWOMAN FOR THE COMPANY SAID IT HAS ABOUT 79 MILLION SHARES OUTSTANDING 9404070117 940407 INTERNATIONAL PRIME MINISTER DENIES SAYING HE MAY RESIGN AMID CHARGES FUELING ANOTHER JAPANESE CRISIS BY MICHAEL WILLIAMS AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO A STEADY DRUMBEAT OF CORRUPTION ALLEGATIONS AGAINST PRIME MINISTER MORIHIRO HOSOKAWA IS PLUNGING HIS GOVERNMENT INTO YET ANOTHER POLITICAL CRISIS ONE THAT A NUMBER OF OBSERVERS SAY HE MIGHTN'T SURVIVE QUESTIONS OVER LOANS AND STOCK PURCHASES ALLEGEDLY MADE BY THE PRIME MINISTER ARE HOLDING UP PASSAGE OF JAPAN'S ANNUAL BUDGET IN PARLIAMENT THE IMPASSE THREATENS TO DELAY A DECISION ON EXTENDING A CRUCIAL INCOMETAX CUT ENDANGERING ECONOMIC RECOVERY AND POTENTIALLY SIDETRACKING EFFORTS TO FINISH MARKETOPENING MEASURES INTENDED TO EASE US TRADE TENSIONS UNDER THE WORSTCASE SCENARIO THE STALEMATE MIGHT EVEN FORCE MR HOSOKAWA'S RESIGNATION OR PRECIPITATE NEW ELECTIONS THROWING JAPAN INTO ANOTHER ROUND OF EXTENDED UNCERTAINTY INDEED IF THE MARKETOPENING MEASURES ARE SANDBAGGED BY POLITICS IT WILL HURT RELATIONS WITH THE US SAYS KOZO YAMAMOTO A LEGISLATOR IN THE RULING COALITION MR HOSOKAWA HIMSELF DEEPENED THE DOUBTS ABOUT HIS POLITICAL VIABILITY EARLY WEDNESDAY THE PRIME MINISTER CALLED HIS LATEST IN A STRING OF EMERGENCY LATENIGHT NEWS CONFERENCES THIS TIME TO QUASH A REPORT BY TWO LEGISLATORS THAT HE TOLD THEM HE WANTS TO RESIGN MR HOSOKAWA DENIED MAKING THE STATEMENT BUT BACKPEDALED WHEN PRESSED BY REPORTERS I DON'T REMEMBER THINGS IN DETAIL HE TOLD JAPANESE REPORTERS SOME OF THE PRIME MINISTER'S SUPPORTERS IN PARLIAMENT CONCEDE HE PROBABLY MADE THE REMARK BUT SAY HE HAS BEEN UNDER PRESSURE AND DID SO IN JEST THE RESIGNATION FLAP SAYS YURIKO KOIKE A LEGISLATOR FROM MR HOSOKAWA'S JAPAN NEW PARTY STEMS FROM AN OFFHAND REMARK MADE BY A NATURE LOVER WHO IS DISTRESSED THAT HE HAS BEEN COOPED UP INSIDE DOING POLITICS UNABLE TO VIEW THE CHERRY BLOSSOMS NOW FLOWERING IN TOKYO HE'S UNDER MENTAL STRESS DEPRESSION HAS ACCUMULATED DURING THE LAST SEVEN OR EIGHT MONTHS SHE SAYS MR HOSOKAWA HAS EXTRICATED HIMSELF FROM A SERIES OF FULLBLOWN CRISES SINCE HE CAME TO POWER LAST SUMMER AND HE MAY EMERGE FROM THIS ONE POLLS SHOW THAT A LARGE MAJORITY OF VOTERS STILL WANT HIM TO REMAIN IN OFFICE BECAUSE THEY MISTRUST HIS OPPONENTS THE LIBERAL DEMOCRATIC PARTY THOUGH MR HOSOKAWA'S POPULARITY RATINGS HAVE PLUNGED TO LESS THAN 50 IN SOME POLLS THEY REMAIN HIGH BY HISTORICAL STANDARDS MOREOVER MANY JAPANESE SEEM CURIOUSLY UNPERTURBED BY THE LATEST REVELATIONS ASSERTING THAT MR HOSOKAWA'S ALLEGED MISCONDUCT WOULDN'T HAVE BEEN UNUSUAL NOTHING HAS CHANGED SINCE MR HOSOKAWA TOOK OFFICE SAYS HIROKI NAKAHORI A 32YEAROLD COMPUTERCOMPANY EMPLOYEE DESPITE THE CURRENT BROUHAHA HE STILL SUPPORTS MR HOSOKAWA OVER THE OPPOSITION BECAUSE WE SAW A LOT OF BAD THINGS GENERATED BY THE VERY LONG RULE OF THE LIBERAL DEMOCRATS AND MANY POLITICIANS BELIEVE THE LIBERAL DEMOCRATS DIVIDED THEMSELVES AND AWARE OF THEIR LOW POPULARITY ARE UNWILLING TO RISK PRECIPITATING A CRISIS THUS JAPAN'S STOCK AND CURRENCY MARKETS TOOK THE RESIGNATION REMARK IN STRIDE YESTERDAY AND VERY FEW OBSERVERS ARE DECLARING THAT MR HOSOKAWA IS FINISHED STILL THE CURRENT DEADLOCK DIFFERS FROM PREVIOUS ONES IN IMPORTANT RESPECTS MR HOSOKAWA WHO HAS TOUTED HIMSELF AS AN AGENT OF CHANGE STANDS ACCUSED OF THE KIND OF CORRUPTION THAT HE CAME TO OFFICE VOWING TO STAMP OUT WHAT'S MORE IN HOLDING UP THE BUDGET MR HOSOKAWA'S OPPONENTS ARE USING A TECHNIQUE THAT IN THE PAST HAS TOPPLED PRIME MINISTERS AND AS THE RESIGNATION FLAP SUGGESTS THERE ARE SIGNS THAT HE IS WEARYING OF THE POLITICAL RAT RACE THE PRIME MINISTER IS NOW WALKING ON THE EDGE OF A CLIFF SAYS TAKAO TOSHIKAWA EDITOR OF A POLITICAL NEWSLETTER HIS TEFLON COATING IS VANISHING MR HOSOKAWA'S OPPONENTS HAVE STUNG HIM WITH A PAIR OF CHARGES THE FIRST CONCERNS HIS HANDLING OF A 100 MILLION YEN 955000 LOAN HE RECEIVED IN 1982 FROM SAGAWA KYUBIN A TRUCKING FIRM AT THE CENTER OF A POLITICALPAYOFF SCANDAL THAT HELPED SWEEP THE LIBERAL DEMOCRATS OUT OF POWER LAST YEAR MR HOSOKAWA HAS SAID HE BORROWED THE MONEY AT MARKET INTEREST RATES AND EVENTUALLY REPAID THE LOAN THE MONEY WAS USED HE HAS SAID TO REPAIR HIS MAIN RESIDENCE AND TO BUY A CONDOMINIUM IN TOKYO'S POSH AZABU DISTRICT THE LIBERAL DEMOCRATS ASSERT THE MONEY WAS A GIFT AND THAT MR HOSOKAWA USED IT IMPROPERLY TO FINANCE A SUCCESSFUL RUN FOR THE GOVERNORSHIP OF KUMAMOTO PREFECTURE THE JAPANESE PRESS HAS REPORTED THAT A RECEIPT HE SUBMITTED FOR THE LOAN REPAYMENT CONTAINS NEITHER THE NAME NOR SEAL OF THE ISSUER AND IS IN THE AMOUNT OF 10 MILLION YEN ONETENTH THE AMOUNT BORROWED THE SECOND CHARGE IS THAT MR HOSOKAWA MISLED PARLIAMENT ABOUT HIS INVOLVEMENT IN THE 1986 PURCHASE OF 300 SHARES IN NIPPON TELEGRAPH & TELEPHONE CORP MR HOSOKAWA HAD SAID THAT HIS FATHERINLAW BOUGHT THE SHARES USING A 400 MILLION YEN LOAN FROM A FINANCING FIRM BUT STOCK CONSULTANT SHUZO FUJIKI CAME FORWARD LAST WEEK TO SAY THAT HE ARRANGED THE INVESTMENT ON THE BEHALF OF MR HOSOKAWA HIMSELF THROUGH AN AIDE OF THE THENGOVERNOR THE STOCK WAS SIMPLY PARKED IN THE FATHERINLAW'S NAME MR FUJIKI SAID IN A PHONE INTERVIEW IT WAS A DEAL STRICTLY DONE ON HOSOKAWA'S WILL SAID THE CONSULTANT JAPANESE NEWS REPORTS SAY THAT A PROFIT OF TENS OF MILLIONS OF YEN WAS EARNED ON THE NTT SHARE SALES IF THE CHARGES ARE TRUE MR HOSOKAWA WOULD AT MINIMUM BE GUILTY OF MISLEADING PARLIAMENT AND OF RECEIVING THE SAME SORT OF SWEETHEART DEALS THE CORRUPT LIBERAL DEMOCRATS WERE REVILED FOR THE PRESS HERE ALSO NOTES THAT THE CHARGES RAISE THE POSSIBILITY OF CAMPAIGNFINANCE AND TAXLAW VIOLATIONS THOUGH SOME NOTE THE STATUTE OF LIMITATIONS FOR PROSECUTION MAY HAVE ALREADY RUN OUT THE LIBERAL DEMOCRATS DEMAND THAT MR HOSOKAWA SUBMIT MORE EVIDENCE OR ALLOW HIS FORMER SECRETARY TO TESTIFY BEFORE PARLIAMENT ABOUT THE ALLEGATIONS OTHERWISE PARLIAMENT WON'T BUDGE SAYS TAKASHI FUKAYA LEADER OF THE LIBERAL DEMOCRATS' LOWER HOUSE BUDGET COMMITTEE MR HOSOKAWA'S PEOPLE REFUSE TO GO ALONG SAYING THE PRIME MINISTER HAS PROVIDED FULL ANSWERS MR HOSOKAWA'S ALLIES ARE BRACING FOR ROUGH GOING IN THE WEEKS AHEAD JAPAN'S GOVERNMENT IS RUNNING ON A STOPGAP BUDGET UNTIL MAY 20 AND COALITION LEADERS WORRY THAT FAILURE TO HAVE A FULL BUDGET IN PLACE BY THEN WILL DAMAGE BUSINESS CONFIDENCE THAT LEAVES THEM WITH LITTLE TIME PERHAPS AS LITTLE AS A WEEK TO GET THE BUDGET TALKS MOVING IF THE BUDGET REMAINS TIED UP THE COALITION COULD RAM THROUGH THE DELIBERATIONS WITHOUT THE OPPOSITION'S PARTICIPATION A MOVE THAT RISKS TRIGGERING A NOCONFIDENCE MOTION FROM THE LIBERAL DEMOCRATS MR HOSOKAWA COULD RESIGN AS PART OF A DEAL TO GET DELIBERATIONS MOVING HE COULD EVEN CALL ELECTIONS THOUGH BOTH SIDES SEEM UNPREPARED NOW TO DO THAT THE CONSTANT VEERING FROM CRISIS TO CRISIS APPEARS TO BE FRAZZLING MR HOSOKAWA'S NERVES DURING A PARLIAMENTARY GRILLING ABOUT THE NTT SHARES LAST WEEK HE SNAPPED THAT EVEN IF THE ALLEGATIONS WERE TRUE WHAT'S WRONG WITH THAT 9404070115 940407 LEHMAN BROTHERS BIDS FAREWELL TO BUSINESS IN MERCHANT BANKING NEW YORK LEHMAN BROTHERS INC IN A BID TO MORE SELECTIVELY USE ITS CAPITAL IS RETREATING FROM THE MERCHANTBANKING BUSINESS THE AMERICAN EXPRESS CO UNIT SAID IT STOPPED MAKING MERCHANTBANKING INVESTMENTS IN EARLY MARCH AND WON'T REPLACE ITS 125 BILLION MERCHANTBANKING FUND THE FIRM SAID HOWEVER THAT IT WILL STILL MAKE SELECTIVE MERCHANTBANKING INVESTMENTS MEANWHILE FOUR SENIOR EXECUTIVES IN LEHMAN'S MERCHANTBANKING UNIT INCLUDING JAMES A STERN 43 YEARS OLD A LEHMAN VETERAN AND ITS FORMER MERCHANTBANKING CHIEF ARE LEAVING TO SET UP AN INVESTMENT BOUTIQUE CYPRESS CAPITAL GROUP INC THESE EXECUTIVES WHO REPRESENTED FOUR OF THE FIVE MANAGING DIRECTORS IN LEHMAN'S MERCHANTBANKING GROUP WILL CONTINUE TO MANAGE THE REMAINING INVESTMENTS FROM LEHMAN'S 125 BILLION FUND THE MOVES COME AS LEHMAN PREPARES TO BECOME AN INDEPENDENT PUBLICLY TRADED INVESTMENT BANK FOR THE FIRST TIME SINCE IT WAS FOUNDED IN 1850 LEHMAN WITHOUT THE BACKING OF AMERICAN EXPRESS IS TAKING PAINS NOT TO TIE UP MUCH OF ITS EQUITY CAPITAL IN LONGTERM INVESTMENTS IN MERCHANTBANKING DEALS FIRMS USE THEIR OWN CAPITAL POOLED WITH THAT FROM CLIENTS TO BUY STAKES IN COMPANIES ALAN WASHKOWITZ A MANAGING DIRECTOR WILL HEAD THE FIRM'S MERCHANTBANKING BUSINESS THE FOUR FORMER LEHMAN EXECUTIVES INCLUDING JEFFREY HUGHES 53 JAMES SINGLETON 38 AND DAVID SPALDING 39 WILL CONTINUE TO WORK CLOSELY WITH LEHMAN UNDER A THREEYEAR CONSULTING AGREEMENT THE FIRM SAID AS OF DEC 31 1993 LEHMAN HAD A TOTAL OF 890 MILLION OF EQUITY INVESTED IN ITS MERCHANTBANKING PORTFOLIO ACCORDING TO INTERNAL LEHMAN DOCUMENTS LEHMAN'S MERCHANTBANKING GROUP HAD AN ANNUAL RATE OF RETURN OF 466 ON THE PARTNERSHIP PORTFOLIO THE DOCUMENTS SAY 9404070114 940407 INITIAL PUBLIC OFFERS OF CLOSEDEND FUNDS RAISE 46 BILLION NEW YORK INITIAL PUBLIC OFFERINGS OF CLOSEDEND FUNDS RAISED 46 BILLION IN THE FIRST THREE MONTHS OF 1994 DOWN 67 FROM THE YEAREARLIER QUARTER FUNDS INVESTING IN THE STOCKS AND BONDS OF DEVELOPING NATIONS DOMINATED CLOSEDEND FUND IPOS IN THE LATEST QUARTER FUNDS INVESTING IN THE STOCKS OF SOUTH AFRICA INDIA AND PACIFIC NATIONS ALL VIED FOR INVESTOR MONEY THE BIGGEST OFFERING IN THE QUARTER GLOBAL PRIVATIZATION FUND HAD THE DISTINCTION OF BEING SOLD TO INVESTORS TWICE AFTER AN ERROR IN A GRAPH OF THE PROSPECTUS CAUSED A RESCISSION OF THE ORIGINAL OFFER THE SECOND TRY RAISING A SLIGHTLY LOWER AMOUNT OF CASH NETTED 977 MILLION FOR THE FUND AFTER COMMISSIONS IPOS IN THE FIRST QUARTER OF 1993 WERE DOMINATED BY FUNDS INVESTING IN BONDS ESPECIALLY MUNICIPAL BONDS THE NUMBER OF FUNDS OFFERED DROPPED TO 21 IN THE FIRST THREE MONTHS OF 1994 DOWN FROM 29 IN THE 1993 FIRST QUARTER 9404070113 940407 WHO'S NEWS FALLS FINANCIAL INC FALLS FINANCIAL INC CUYAHOGA FALLS OHIO JAMES J LITTLE 31 YEARS OLD FORMERLY CHIEF FINANCIAL AND ACCOUNTING OFFICER WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SAVINGS BANK HOLDING COMPANY AND OF ITS FALLS SAVINGS BANK UNIT AS PRESIDENT OF THE CORPORATION HE SUCCEEDS GENE STALNAKER 63 WHO RETIRED AS THE CORPORATION'S PRESIDENT AND CHIEF OPERATING OFFICER MR STALNAKER WILL CONTINUE TO SERVE ON THE BOARDS OF THE HOLDING COMPANY AND ITS UNIT MR LITTLE SUCCEEDS HOWARD W ATWOOD 71 AS CHIEF EXECUTIVE OFFICER MR ATWOOD CONTINUES AS THE COMPANY'S CHAIRMAN AND AS CHAIRMAN OF FALLS SAVINGS BANK IN ADDITION MR LITTLE WAS NAMED A NEW DIRECTOR OF THE HOLDING COMPANY AND OF FALLS SAVINGS BANK THIS RESTORES THE CORPORATION'S BOARD SIZE TO SEVEN MEMBERS SINCE ONE DIRECTOR ROBERT H REYNOLDS HAD RETIRED AT THE END OF 1993 THE COMPANY SAID THE COMPANY HASN'T NAMED A SUCCESSOR TO MR LITTLE A SPOKESMAN SAID FALLS FINANCIAL EXPECTS TO NAME A SUCCESSOR SOON MR LITTLE WILL FULFILL THE DUTIES OF THE FINANCIAL CHIEF UNTIL THEN 9404070112 940407 JUSTICE DEPARTMENT WEIGHS CHALLENGING AT&TMCCAW PACT ON ANTITRUST ISSUES BY LESLIE CAULEY AND VIVECA NOVAK STAFF REPORTERS OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO MAY FACE A NEW REGULATORY HURDLE IN COMPLETING ITS 126 BILLION ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS CO AS THE JUSTICE DEPARTMENT WEIGHS WHETHER TO CHALLENGE THE DEAL ON ANTICOMPETITIVE GROUNDS THE JUSTICE DEPARTMENT MAY MOVE TO BLOCK OR REVISE AT&T'S PROPOSAL TO BUY MCCAW BY ARGUING THAT AT&T COULD USE ITS PROWESS AS A MAJOR MAKER OF CELLULAR GEAR TO HURT RIVALS IN THE WIRELESS BUSINESS ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THE JUSTICE DEPARTMENT DENIED THAT IT IS CLOSE TO A DECISION ROBERT LITAN DEPUTY ASSISTANT ATTORNEY GENERAL FOR ANTITRUST SAID THE MERGER INVESTIGATION IS STILL UNDER WAY BUT IT'S GOT MONTHS TO GO THE BOTTOM LINE IS THERE'S NOTHING IMMINENT TO THIS MCCAW IS SUPPLYING LOTS AND LOTS OF DATA AND THAT PROCESS IS STILL ONGOING BUT PEOPLE CLOSE TO THE SITUATION SAID THE ANTITRUST DIVISION IS LOOKING HARD AT SEEKING A PRELIMINARY INJUNCTION BLOCKING THE MERGER SUCH A MOVE BY THE JUSTICE DEPARTMENT COULD POSE THE BIGGEST HURDLE YET TO AT&T'S BOLD ACQUISITION PLAN TUESDAY US DISTRICT JUDGE HAROLD H GREENE RULED THAT THE DEAL WOULD ESSENTIALLY VIOLATE THE ORIGINAL TERMS OF THE BREAKUP OF THE OLD AT&T A DECADE AGO UNLESS THE COMPANY CAN PERSUADE HIM TO GRANT A WAIVER BECAUSE THE ACQUISITION IS IN THE PUBLIC INTEREST JUSTICE OFFICIALS RECENTLY ASKED AT&T TO SUBMIT ADDITIONAL INFORMATION ON COMPETITIVE ASPECTS OF THE MERGER AND THE DEADLINE IS APPROACHING SOON AT&T OFFICIALS ARE SLATED TO MEET WITH JUSTICE OFFICIALS TODAY TO GO OVER MERGER DETAILS AS PART OF A REGULARLY SCHEDULED SESSION LAST FALL AT&T AGREED TO BUY MCCAW FOR 126 BILLION IN STOCK MCCAW THE NATION'S LARGEST CELLULARPHONE COMPANY HAS TWO MILLION CUSTOMERS IN MARCH PEOPLE CLOSE TO THE JUSTICE DEPARTMENT INDICATED THE DEPARTMENT WAS CONCERNED THE MERGER WOULD GIVE AT&T AN INCENTIVE TO CHARGE MCCAW'S COMPETITORS MORE WHILE PROVIDING POOR SERVICE AT&T IS A LEADING EQUIPMENT MANUFACTURER THAT SUPPLIES COMPUTERIZED SWITCHES AND CELL SITES TO MCCAW'S MAIN RIVALS A NUMBER OF REGIONAL BELL TELEPHONE COMPANIES THAT USE THE AT&T GEAR FOR THEIR OWN CELLULAR SERVICES AS SUCH IT HAS ACCESS TO INTIMATE NETWORK DETAILS THAT COMPANIES CONSIDER PROPRIETARY INCLUDING NETWORK CONFIGURATION ONCE IT ACQUIRES MCCAW SOME BABY BELLS FEAR AT&T WOULD HAVE AN INCENTIVE TO USE THAT INFORMATION TO THEIR COMPETITIVE DISADVANTAGE IN MARKETS WHERE THEY COMPETE WITH AT&T'S NEWLY ACQUIRED MCCAW PROPERTY AT&T KNOWS EVERYTHING THERE IS TO KNOW ABOUT MY INFRASTRUCTURE MY FREQUENCIES MY TUNING YOU NAME IT AND I DEPEND ON THEM FOR FIRSTCLASS MAINTENANCE OF THE NETWORK SAID JOHN E ROONEY PRESIDENT OF THE CELLULAR UNIT OF CHICAGOBASED AMERITECH CORP AN AT&T EQUIPMENT CUSTOMER IF THIS MERGER GOES THROUGH I'LL BE THEIR CUSTOMER ON ONE SIDE AND THEIR COMPETITOR ON THE OTHER IT'S STUPID MR ROONEY BELIEVES THIS POSSIBLE CONFLICT OF INTEREST IF LEFT UNCHECKED HAS THE POTENTIAL TO SEVERELY HANDICAP DEVELOPMENT OF THE WIRELESS INDUSTRY IN THE US THAT VIEW IS SHARED BY BOTH BELL ATLANTIC CORP AND SOUTHWESTERN BELL CORP WHICH ASKED THE FEDERAL COMMUNICATIONS COMMISSION LAST FALL TO BLOCK THE ACQUISITION UNTIL THE BABY BELLS ARE ALLOWED INTO THE LONGDISTANCE AND EQUIPMENT MANUFACTURING BUSINESS FRANCINE BERRY VICE PRESIDENT OF LAW FOR AT&T DISMISSED THE CONCERNS OVER AT&T'S EQUIPMENTMAKING ROLE AS BASELESS CONTENDING THE MARKET IS A VERY COMPETITIVE INDUSTRY MOREOVER MS BERRY SAID SHE HADN'T HEARD THOSE CONCERNS RAISED BY THE JUSTICE DEPARTMENT DIRECTLY BUT I'M SURE THEY ARE FROM OTHER PARTIES BUT A MCCAW SPOKESMAN ACKNOWLEDGED THAT JAMES BARKSDALE MCCAW'S PRESIDENT AND CHIEF OPERATING OFFICER HAD TALKED WITH JUSTICE INVESTIGATORS ABOUT THE ISSUE SEVERAL MONTHS AGO EVEN SO MCCAW CONTINUES TO BELIEVE THAT IT ISN'T A BIG ISSUE THE SPOKESMAN SAID WE HAVE SAID FROM THE BEGINNING THAT WE WOULD NEVER BE A ONEVENDOR COMPANY THE SPOKESMAN SAID MEANING THAT MCCAW WILL BUY GEAR FROM MANY DIFFERENT MANUFACTURERS AT&T COULD RESOLVE THE ANTITRUST ISSUES ON ITS OWN BY SAY ERECTING A CHINESE WALL TO ENSURE COMPETITORS THAT PROPRIETARY INFORMATION ABOUT THEIR NETWORKS IS NOT MADE AVAILABLE TO ITS NEW WIRELESS OPERATIONS THE MCCAW SPOKESMAN DECLINED TO SAY WHAT CONCESSIONS IF ANY MCCAW WOULD BE WILLING TO MAKE TO ADDRESS THE CONCERNS OF FEDERAL WATCHDOGS REVIEWING THE ACQUISITION AGREEMENT WE STILL EXPECT THE DEAL TO CLOSE ON TIME HE SAID WE'LL WAIT AND SEE WHAT HAPPENS IN THE MEANTIME AT&T IS GOING TO HAVE TO ADDRESS THE CONCERNS OF THE US DISTRICT COURT IN WASHINGTON JUDGE GREENE'S RULING ON TUESDAY CAME IN RESPONSE TO A FILING BY BELLSOUTH CORP ATLANTA WHICH HAD ARGUED THAT MCCAW'S PARTIAL OWNERSHIP IN CELLULAR SYSTEMS COOWNED BY BELLSOUTH WOULD POSE A VIOLATION OF THE CONSENT DECREE UNDER WHICH AT&T WAS SPLIT UP BELLSOUTH HAD NEVER SOUGHT TO BREAK THE MCCAW DEAL PEOPLE FAMILIAR WITH THE COMPANY'S THINKING SAY BUT RATHER TO FORCE AT&T TO PUBLICLY ADMIT THAT COMPETITION IN THE WIRELESS MARKET WAS ROBUST ENOUGH TO WARRANT LOOSENING SOME OF THE RESTRICTIONS ON THE BELLS IN PARTICULAR BELLSOUTH WANTS RELIEF FROM THE RESTRICTIONS IN FLORIDA WHERE IT GOES HEADTOHEAD FOR WIRELESS CUSTOMERS WITH MCCAW IN FLORIDA BELLSOUTH CAN'T DIRECTLY SHIP WIRELESS CALLS ACROSS THE STATE IT HAS TO HAND THEM OFF FROM ONE SWITCHING CENTER TO ANOTHER MAKING IT MORE DIFFICULT AND EXPENSIVE TO HANDLE CALLS THE BABY BELL ALSO HAS TO GIVE CUSTOMERS THEIR CHOICE OF LONGDISTANCE PROVIDER MCCAW ITS MAIN COMPETITOR HAS NONE OF THOSE RESTRICTIONS GIVING IT ACCORDING TO BELLSOUTH A LEG UP IN THE MARKET SO FAR AT&T HAS CONTINUED TO OPPOSE BELLSOUTH'S REQUEST FOR RELIEF IN FLORIDA AT&T HAS STEADFASTLY MAINTAINED THAT COMPETITION IN THE LOCAL TELEPHONE MARKET WASN'T SUFFICIENT TO WARRANT LOOSENING THE RESTRICTIONS AT&T INDICATED IT HAS NO INTENTION OF CHANGING ITS PUBLIC STANCE ON THE ISSUE THE BOTTLENECK IS STILL THE BOTTLENECK MS BERRY SAID REFERRING TO THE BABY BELLS' LOCK ON THE LOCAL TELEPHONE MARKET WHAT HAS CHANGED SINCE THE BREAKUP OF THE TELEPHONE MONOPOLY MS BERRY SAID IS THAT THE BELLS ARE GOING OUTSIDE THEIR HOME TURFS TO BUY CELLULAR PROPERTIES MAKING IT ALMOST IMPOSSIBLE FOR OTHER COMPANIES TO BUY CELLULAR SYSTEMS WITHOUT BUMPING UP AGAINST A BELL 9404070111 940407 WHO'S NEWS MONSANTO CO MONSANTO CO ST LOUIS ROBERT B HOFFMAN 57 YEARS OLD FORMERLY VICE PRESIDENT INTERNATIONAL OPERATIONS OF FMC CORP WAS NAMED CHIEF FINANCIAL OFFICER OF THIS CHEMICAL CONCERN SUCCEEDING FRANCIS A STROBLE WHO RETIRED 9404070110 940407 FOREIGN EXCHANGE DOLLAR CLINGS TO HIGHER LEVELS IN MARK YEN REFUSING TO YIELD ITS RECENT GAINS BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR HUMMED ALONG YESTERDAY NEAR RANGES ESTABLISHED IN TUESDAY'S RUNUP REFUSING TO GIVE BACK GAINS BUT ALSO DECLINING TO TEST SIGNIFICANTLY HIGHER GROUND INDEED THE DOLLAR'S RELATIVE LACK OF ACTIVITY MIRRORED MOVEMENTS IN THE US STOCK AND BOND MARKETS WHICH ALSO TRADED INDOLENTLY A DAY AFTER TUESDAY'S TREMENDOUS RALLY LATE IN NEW YORK THE DOLLAR WAS GENERALLY FIRMER QUOTED AT 17165 MARKS UP FROM 17140 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10455 YEN UP FROM 10435 YEN STERLING WAS TRADING AT 14680 UP FROM 14645 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10442 YEN AND AT 17125 MARKS BUT LITTLE NEWS COULD WELL BE BULLISH NEWS IT'S CONSOLIDATION DAY IF YOU'RE A DOLLAR BULL YOU CAN TAKE A LITTLE BIT OF HEART THERE WASN'T A SELLOFF SAID BOB NEAR VICE PRESIDENT AT BANK OF NEW YORK MR NEAR NOTED THAT THE DOLLAR APPEARS TO HAVE FOUND A NEW RANGE CENTERED AROUND 17150 MARKS AND 10450 YEN MUCH LIKE THE WAY THE US STOCK AND BOND MARKETS MIGHT HAVE FOUND THEIR OWN COMFORT ZONES DURING THE PAST TWO DAYS THE COMBINATION OF LAST FRIDAY'S IMPRESSIVE 456000 GAIN IN US MARCH NONFARM PAYROLLS AND TUESDAY'S STOCK AND BOND MARKET SURGES PROVIDED THE GREEN LIGHT FOR DOLLAR BULLS SAID ALAN RUSKIN SENIOR ECONOMIST AT IDEA A FINANCIALFORECASTING GROUP IN NEW YORK A LOT OF PEOPLE WANTED TO EXTEND THEIR LONG DOLLAR POSITIONS BUT WERE TOO SCARED TO DO SO IN THE FACE OF THE BOND AND STOCK COLLAPSES OF THE PAST TWO MONTHS HE ADDED MR RUSKIN SAID THAT WITH TUESDAY'S RALLY A LOT OF SHORTDOLLAR POSITIONS WERE SQUARED OUT GIVING BEARISH TECHNICAL TRADERS REASON TO LOOK TO THE POSITIVE SIDE OF THEIR CHARTS BUT IF THE DOLLAR HAS FOUND A HIGHER RANGE IN WHICH TO TRADE INVESTORS MIGHT NOT BE READY TO PUSH IT TOWARD THE STRATOSPHERE JUST YET ANALYSTS SAID IF THIS IS GOING TO BE A SERIOUS DOLLAR BULL RUN TUESDAY'S GAINS COULD PROVIDE A BASE MR RUSKIN SAID BUT HE ADDED THAT TOO MUCH OF THE MARKET REMAINS FIDGETY INDEED INVESTORS STILL REMEMBER HOW BADLY SOME WERE BURNED ON THE DOLLAR'S UNDERPERFORMANCE THE FIRST TWO MONTHS OF THE YEAR WHEN EXPECTATIONS WERE WIDESPREAD FOR A SPRINT TO 18000 MARKS MOST PEOPLE ANTICIPATE THE DOLLAR WILL RUN OUT OF STEAM AT 17250 MARKS MR RUSKIN SAID THE MARKET WAS SO INTENT ON HOLDING ON TO ITS GAINS IT IGNORED NEWS THAT MIGHT NORMALLY HAVE DEPRESSED THE DOLLAR FOR INSTANCE A WASHINGTON POST STORY YESTERDAY THAT THE FEDERAL RESERVE IS UNLIKELY TO TIGHTEN MONETARY POLICY FURTHER UNTIL FINANCIAL MARKETS CALM DOWN DID LITTLE TO MOVE THE DOLLAR THE NEWSPAPER QUOTED FED OFFICIALS ASSAYING THEY DIDN'T WANT TO ADD FURTHER CONFUSION TO FINANCIAL MARKETS STILL REELING FROM THE FED'S PAST TWO RATE INCREASES ON FEB 4 AND MARCH 22 IN A PREEMPTIVE STRIKE AT INFLATION BOTH TIMES THE FED TIGHTENED THE FED FUNDS RATE THE RATE THAT LARGE COMMERCIAL BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS THE BOND MARKET SPIRALED DOWNWARD ON THE VERY INFLATION FEARS THE FED WAS SEEKING TO PREVENT WHILE ANY SIGN OF A SLOWDOWN IN THE CONVERGENCE BETWEEN US AND GERMAN INTEREST RATES IS SEEN AS BEARISH FOR THE DOLLAR THE WASHINGTON POST REPORT WAS SHRUGGED OFF AS A CONFIRMATION OF MARKET THINKING MR RUSKIN SAID THE FED ISN'T GOING TO ACT WHILE THE MARKET IS THIS VOLATILE HE ADDED 9404070109 940407 BUSINESS BRIEF CHARLES SCHWAB CORP DISCOUNT BROKER ENLARGES ESTIMATE FOR QUARTERLY PROFIT CHARLES SCHWAB CORP A SAN FRANCISCO DISCOUNT BROKERAGE FIRM AND MONEY MANAGER SAID IT EXPECTS TO POST HIGHERTHANANTICIPATED EARNINGS FOR ITS FIRST QUARTER ON THE STRENGTH OF RISING CUSTOMER ACCOUNTS AND ASSETS THE COMPANY WHOSE STOCK ROSE 75 CENTS TO 28 IN YESTERDAY'S TRADING ON THE NEW YORK STOCK EXCHANGE SAID IT EXPECTS TO POST FIRSTQUARTER EARNINGS OF 39 MILLION OR 66 CENTS A SHARE ON REVENUE OF 285 MILLION MOST ANALYSTS HAD EXPECTED THE COMPANY TO POST EARNINGS OF ABOUT 10 LESS IN THE YEARAGO PERIOD SCHWAB EARNED 354 MILLION OR 60 CENTS A SHARE ON REVENUE OF 236 MILLION 9404070108 940407 WHO'S NEWS CONAGRA INC CONAGRA INC OMAHA NEB DAVID R WILLENSKY 43 YEARS OLD FORMERLY MANAGING DIRECTOR OF CALIFORNIA STRATEGIC INVESTORS WAS NAMED SENIOR VICE PRESIDENT CORPORATE PLANNING AND DEVELOPMENT OF THIS DIVERSIFIED FOOD CONCERN SUCCEEDING ROBERT J WHITE WHO RETIRED 9404070107 940407 CHICAGO BANK CLOSES ACCORD WITH CHINA ON AIRCRAFT PURCHASE CHICAGO FIRST NATIONAL BANK OF CHICAGO AND BANK OF CHINA CLOSED A 261 MILLION TRANSACTION PARTLY BACKED BY AN EXPORTIMPORT BANK OF THE US GUARANTEE TO FINANCE PURCHASE OF SEVEN BOEING 737 AIRCRAFT BY CHINA SOUTHERN AIRLINES THE TRANSACTION IS THE FIRST TIME A CHINESE COMPANY WILL RAISE LONGTERM FUNDS IN THE US SECURITIES MARKET WITH CREDIT SUPPORT FROM EXIMBANK THE CHICAGO BANK SAID FIRST CHICAGO CAPITAL MARKETS INC A SUBSIDIARY OF FIRST CHICAGO CORP IS THE UNDERWRITER OF THE CERTIFICATES WHICH WILL BE SOLD TO INSTITUTIONAL INVESTORS THE GUARANTEE EXTENDS UP TO 201 MILLION WHILE THE REMAINING 60 MILLION WILL BE FINANCED THROUGH A SYNDICATED LOAN ARRANGED BY FIRST CHICAGO AND BANK OF CHINA AND GUARANTEED BY BANK OF CHINA WHICH IS OWNED BY THE GOVERNMENT OF CHINA 9404070106 940407 BUSINESS BRIEFS ASHLAND CHEMICAL CO A UNIT OF ASHLAND OIL INC ACQUIRED ACT INC ALLENTOWN PA A CLOSELY HELD PRODUCER OF SPECIALTY HIGHPURITY CHEMICALS USED IN MAKING SEMICONDUCTORS TERMS WEREN'T DISCLOSED MERCK & CO'S MEDCO CONTAINMENT SERVICES INC CONCLUDED ITS PREVIOUSLY ANNOUNCED AGREEMENT TO BUY THE 458 OF MEDICAL MARKETING GROUP INC MONTVALE NJ IT DIDN'T ALREADY OWN COOPER INDUSTRIES INC ACQUIRED THE IGNITIONPARTS BUSINESS OF ITALY'S MAGNETI MARELLI SPA AND WILL FOLD IT INTO THE EUROPEAN OPERATIONS OF ITS CHAMPION SPARK PLUG DIVISION TERMS WEREN'T DISCLOSED EXECUTIVE SEARCH FIRM HEIDRICK & STRUGGLES OPENED AN OFFICE IN HONG KONG BRINGING TO 30 THE NUMBER OF OFFICES IN NORTH AMERICA EUROPE AND THE PACIFIC BASIN STEWART ENTERPRISES INC AGREED TO ACQUIRE 14 CEMETERIES AND THREE FUNERAL HOMES FROM LEGACY ONE INC TERMS WEREN'T DISCLOSED 9404070105 940407 DOFASCO WARRANTS ARE EXERCISED HAMILTON ONTARIO DOFASCO INC SAID IT RAISED ABOUT 95 MILLION CANADIAN DOLLARS US687 MILLION AFTER INVESTORS EXERCISED WARRANTS TO PURCHASE ABOUT 46 MILLION DOFASCO SHARES AT C2050 EACH DOFASCO HAS ABOUT 84 MILLION SHARES OUTSTANDING AFTER ISSUING THE SHARES A SPOKESMAN FOR THE STEEL PRODUCER SAID THE FUNDS WILL BE USED FOR GENERAL CORPORATE PURPOSES THE COMPANY'S SHARES CLOSED AT C23 ON THE TORONTO STOCK EXCHANGE YESTERDAY 9404070104 940407 COASTAL TO REPORT RISE IN GAS THROUGHPUT FOR THE FIRST QUARTER HOUSTON COASTAL CORP OPERATOR OF A MAJOR NATURALGAS PIPELINE SYSTEM EXPECTS TO REPORT FIRSTQUARTER THROUGHPUT ROSE INCLUDING A RECORD DAY JAN 19 THAT EXCEEDED ITS PREVIOUS DAILY HIGH BY 31 SET IN JANUARY 1988 JAMES F CORDES AN EXECUTIVE VICE PRESIDENT SAID HE COULDN'T BE SPECIFIC ABOUT FIRSTQUARTER TRANSMISSION TOTALS BECAUSE THE BOOKS FOR THE PERIOD AREN'T CLOSED BUT HE SAID THE EXPECTED HIGHER VOLUMES ARE LIKELY TO CONTINUE IN THE SECOND QUARTER AS CUSTOMERS REPLENISH INVENTORIES DEPLETED BY THE COLD WINTER WE'RE EXPECTING OUR PIPELINE TO BE RELATIVELY FULL THIS SUMMER UNLIKE A YEAR EARLIER HE SAID MR CORDES WHO ALSO IS PRESIDENT OF COASTAL'S AMERICAN NATURAL RESOURCES CO PIPELINE UNIT SAID THAT TOTAL CURRENT GAS STORAGE FOR THE ENTIRE US IS 30 BELOW THE YEAREARLIER LEVEL OF 124 TRILLION CUBIC FEET ANNUAL US GAS CONSUMPTION IS ABOUT 20 TRILLION CUBIC FEET MR CORDES PREDICTS NATURALGAS PRICES WILL STAY RELATIVELY STRONG THIS SUMMER INSTEAD OF GOING INTO THEIR TRADITIONAL WARMWEATHER TAILSPIN NATURALGAS HAS BEEN SELLING AT ABOUT 210 A THOUSAND CUBIC FEET COMPARED WITH 190 A YEAR AGO MR CORDES SAID HE EXPECTS GAS PRICES THIS SPRING AND SUMMER TO RANGE FROM 2 TO 225 A THOUSAND CUBIC FEET 9404070103 940407 THE MYSTERY OF HILLARY'S TRADES BY DAVID L BRANDON AS FORMER HEAD OF THE IRS CHIEF COUNSEL'S COMMODITIES INDUSTRY SPECIALIZATION TEAM IN THE MID1980S I HAVE FOLLOWED WITH GREAT INTEREST THE MEDIA STORIES ON HILLARY CLINTON'S EXCELLENT ADVENTURES IN THE COMMODITIES MARKETS AS A PROUD CAPITALIST AND FREE MARKET PROPONENT AND AN AVID BEEF EATER I WOULD BE THE FIRST IN LINE TO SALUTE THIS WOMAN'S SUCCESS WITH CATTLE FUTURES BUT BASED ON MY YEARS OF EXPERIENCE WITH THESE MARKETS HER STORY JUST DOESN'T ADD UP IN FACT THE CHANCES OF SOMEONE MAKING ALMOST 100000 IN THE FUTURES MARKETS ON HER FIRST TRY ARE ABOUT AS GREAT AS WALKING INTO A CASINO IN LAS VEGAS HITTING THE MILLIONDOLLAR JACKPOT ON YOUR FIRST TRY AT THE SLOTS THEN WALKING OUT NEVER TO PLAY AGAIN IT JUST DOESN'T HAPPEN THAT WAY FOR THOSE UNFAMILIAR WITH THE DETAILS OF MRS CLINTON'S REMARKABLE VENTURE INTO THE COMMODITIES MARKETS SHE ALLEGEDLY MADE MORE THAN 99000 IN CATTLE FUTURES AND OTHER COMMODITIES IN LATE 1978 AND 1979 WITHDRAWING FROM TRADING JUST BEFORE THE MARKETS WENT BUST NO EXPLANATION HAS BEEN OFFERED OF HOW MRS CLINTON MANAGED TO SATISFY STATE LAWS THAT REQUIRE FUTURES INVESTORS TO DEMONSTRATE A MINIMUM NET INCOME AND NET WORTH NOR HOW A NOVICE COULD HAVE SUCH UNCANNY TIMING THERE IS IN FACT A MUCH MORE PROBABLE EXPLANATION FOR MRS CLINTON'S GOOD FORTUNE THE MEDIA HAVE ALREADY SUGGESTED THAT TRADES MAY HAVE BEEN MOVED TO MRS CLINTON'S ACCOUNT AFTER GAINS HAD BEEN REALIZED HOWEVER THE STORIES THUS FAR HAVE NOT CLEARLY FOCUSED ON A COMMON TRADING STRATEGY CALLED A STRADDLE THAT WAS VERY MUCH IN VOGUE AT THE TIME STRADDLES HAVE THE UNIQUE ABILITY TO PRODUCE EXACTLY EQUAL AND OFFSETTING GAINS AND LOSSES THAT CAN BE TRANSFERRED OR USED BY THE STRADDLE TRADER FOR A VARIETY OF PURPOSES DURING THE LATE 1970S AND EARLY 1980S STRADDLES WERE USED FOR ALL KINDS OF ILLEGAL ACTIVITIES RANGING FROM TAX EVASION TO MONEYLAUNDERING AND BRIBES IN FACT THIS ACTIVITY PROMPTED A NUMBER OF LEGAL AND REGULATORY CHANGES BY THE REAGAN ADMINISTRATION TO CURB THE ABUSES ALTHOUGH IT SOUNDS SOMEWHAT ESOTERIC A COMMODITIES STRADDLE IS A RELATIVELY SIMPLE TRADING DEVICE A COMMODITIES FUTURES CONTRACT IS NOTHING MORE THAN AN AGREEMENT BETWEEN TWO PARTIES TO BUY OR SELL A CERTAIN TYPE OF COMMODITY IN MRS CLINTON'S CASE CATTLE FOR A STATED PRICE ON SOME DATE IN THE FUTURE IF THE PRICE OF THE COMMODITY GOES UP BEFORE THE CONTRACT DELIVERY DATE THE INDIVIDUAL WHO AGREED TO BUY THE COMMODITY WILL REALIZE A GAIN EQUAL TO THE DIFFERENCE BETWEEN THE CURRENT PRICE AND THE CONTRACT PRICE THE INDIVIDUAL WHO AGREED TO SELL WILL REALIZE A LOSS IN AN EQUAL AMOUNT CONVERSELY IF THE PRICE GOES DOWN THE BUYER WILL LOSE AND THE SELLER WILL GAIN A STRADDLE IS CREATED WHEN AN INVESTOR ENTERS INTO CONTRACTS TO BOTH BUY AND SELL THE SAME COMMODITY IN THIS CASE ANY GAIN ON ONE CONTRACT WILL BE EXACTLY OFFSET BY A LOSS ON THE OPPOSITE CONTRACT WHILE STRADDLE TRADING TODAY IS USED IN A VARIETY OF LEGITIMATE WAYS THESE TRANSACTIONS LEND THEMSELVES TO ALL SORTS OF ABUSES AS WELL BEFORE REGULATORY CHANGES IN THE 1980S IT WAS COMMON TO ENTER INTO STRADDLES TO WIPE OUT LARGE CAPITAL GAINS FOR TAX PURPOSES FOR EXAMPLE AN INVESTOR WHO REALIZED A 100000 CAPITAL GAIN IN THE STOCK MARKET MIGHT ENTER INTO A LARGE STRADDLE IN THE COMMODITIES MARKET WHEN THE COMMODITY PRICE MOVED THE INVESTOR WOULD CLOSE THE LOSS LEG OF THE STRADDLE AND REALIZE A 100000 LOSS WHICH OFFSET HIS GAIN IN THE STOCK MARKET THE INVESTOR WAS NOT REQUIRED TO REPORT THE UNREALIZED 100000 GAIN IN THE OPPOSITE LEG OF THE STRADDLE UNTIL THAT LEG WAS CLOSED IN THE FOLLOWING YEAR TYPICALLY THE INVESTOR ENTERED INTO ANOTHER STRADDLE IN THE FOLLOWING YEAR THEREBY INDEFINITELY ROLLING OVER THE CAPITAL GAIN INTO SUBSEQUENT YEARS ANOTHER PLOY COMMON DURING THAT TIME REQUIRED THE ASSISTANCE OF A FRIENDLY BROKER AN INVESTOR COULD CREATE A STRADDLE USING TWO SEPARATE INVESTMENT ACCOUNTS WITH HIS BROKER AFTER THE STRADDLE HAD MOVED SO THAT A GAIN AND AN OFFSETTING LOSS HAD BEEN CREATED THE FRIENDLY BROKER SIMPLY WROTE IN THE NAME OF THE INVESTOR'S TAXEXEMPT RETIREMENT FUND ON THE ACCOUNT THAT HELD THE GAIN LEG OF THE STRADDLE THE RESULT WAS THAT A LOSS WAS REALIZED THAT WAS REPORTED ON THE INVESTOR'S TAX RETURN WHILE THE GAIN WENT UNREPORTED IN THE TAXEXEMPT RETIREMENT ACCOUNT IN THE LATE 1970S AND EARLY 1980S THE IRS BEGAN NOTICING LARGE NUMBERS OF INDIVIDUAL TAX RETURNS THAT CURIOUSLY SHOWED COMMODITIES LOSSES JUST BIG ENOUGH TO WIPE OUT UNRELATED CAPITAL GAINS NO CORRESPONDING COMMODITIES GAINS WHICH WOULD SUGGEST A STRADDLE EVER APPEARED ON SUBSEQUENT RETURNS EVEN MORE CURIOUSLY THE PROFILE OF THESE INVESTORS ALWAYS HAD ONE THING IN COMMON WHICH WAS LIMITED EXPERIENCE OR NO PRIOR EXPERIENCE IN COMMODITIES TRADING IN THE EARLY 1980S AN IRS AGENT IN CHICAGO THOUGHT TO LOOK INTO ONE TAXPAYER'S RETIREMENT FUND AND OF COURSE FOUND THE HIDDEN GAIN LEG OF THE STRADDLE AFTER THAT EXPERIENCE THE IRS REDOUBLED ITS EFFORTS TO SEEK OUT THOUSANDS OF MISSING STRADDLE GAINS IT FOUND THEM IN RETIREMENT ACCOUNTS IN LONDON IN THE CAYMAN ISLANDS ALMOST ANYWHERE A TAXPAYER THOUGHT HE MIGHT HIDE THEM FROM THE IRS WITH RESPECT TO THESE THOUSANDS OF MYSTERIOUS ISOLATED COMMODITIES TRANSACTIONS THAT SHOWED UP ON TAX RETURNS THE IRS UNCOVERED SOME FORM OF QUESTIONABLE TRADING IN VIRTUALLY 100 OF THE CASES IT INVESTIGATED WELL BEFORE THE CLOSE OF THE 1980S THE IRS HAD ASSESSED MORE THAN 7 BILLION IN DELINQUENT TAXES AND PENALTIES ATTRIBUTABLE TO THESE TRANSACTIONS AND EVENTUALLY SETTLED THESE CASES OUT OF COURT FOR APPROXIMATELY 35 BILLION WHILE MOST OF THE IRS'S EFFORTS WERE DIRECTED AT FINDING HIDDEN GAINS OF THE UBIQUITOUS STRADDLE THE TRADING DEVICE COULD JUST AS EASILY BE USED TO OPENLY TRANSFER GAINS WHILE HIDING THE OFFSETTING LOSS IF SOMEONE DESIRED TO MAKE AN ILLICIT PAYMENT TO ANOTHER PARTY A STRADDLE COULD BE USED TO ACCOMPLISH THIS PURPOSE WITH NO INCRIMINATING OR SUSPICIOUSLOOKING BANK WITHDRAWALS OR DEPOSITS IN FACT THE IRS FOUND NUMEROUS INCIDENTS OF STRADDLES BEING USED FOR MONEYLAUNDERING PURPOSES DOES MRS CLINTON'S TRADING ACTIVITY FIT THE PROFILE OF THE ILLEGITIMATE STRADDLE TRADER SHE WAS A NOVICE IN THE COMMODITIES MARKETS WHO AGAINST ALL ODDS REALIZED LARGE GAINS ALTHOUGH SHE INTERMITTENTLY REALIZED LOSSES IT DOES NOT APPEAR THAT SHE EVER HAD TO RISK HER OWN CAPITAL BEYOND HER INITIAL 1000 DEPOSIT WHICH ITSELF MAY HAVE BEEN INSUFFICIENT TO COVER EVEN HER FIRST TRANSACTION WHICH NETTED HER 5300 ACCORDING TO THE TRADING RECORDS RELEASED BY THE WHITE HOUSE MOST OF MRS CLINTON'S GAINS WERE RECORDED AS INTRAMONTH TRANSACTIONS THIS MEANS THAT THESE RECORDS INCLUDE NO INFORMATION REGARDING KEY ELEMENTS OF THE TRADE SUCH AS THE TYPE AND QUANTITY OF THE CONTRACTS ACQUISITION DATES ACQUISITION PRICES ETC SUCH INFORMATION IS NEEDED TO DETERMINE WHETHER TRADES WERE PART OF A PREARRANGED STRADDLE IT ALSO APPEARS THAT MRS CLINTON'S BROKER ROBERT L RED BONE WAS NO STRANGER TO THE SPICIER PRACTICES OF COMMODITIES TRADING ACCORDING TO THE WALL STREET JOURNAL'S FRONTPAGE ARTICLE LAST FRIDAY IT SEEMS MORE THAN COINCIDENTAL THAT MR BONE WAS A FORMER EMPLOYEE OF TYSON FOODS AND THAT MRS CLINTON'S INVESTMENT ADVISER JAMES BLAIR WAS THE COMPANY'S LEGAL COUNSEL TYSON THE POULTRY CONCERN IS ONE OF THE LARGEST EMPLOYERS IN THE STATE OF ARKANSAS THE FACT THAT THE CLINTONS WITHHELD DISCLOSING ONLY THOSE TAX RETURNS THAT INCLUDED THEIR COMMODITIES GAINS UNTIL THE TRANSACTIONS WERE REPORTED BY THE NEW YORK TIMES IN FEBRUARY ALSO APPEARS QUITE SUSPICIOUS FROM MY STANDPOINT AS A FORMER GOVERNMENT STAFF ATTORNEY WITH EXTENSIVE EXPERIENCE IN THESE MATTERS MRS CLINTON'S WINDFALL IN THE LATE 1970S HAS ALL THE TRAPPINGS OF PREARRANGED TRADES HOW WOULD A STRADDLE HAVE BEEN USED IN MRS CLINTON'S CASE THE JOURNAL HAS ALREADY REPORTED THAT GAINS THEORETICALLY COULD HAVE BEEN TRANSFERRED TO MRS CLINTON'S ACCOUNT WHILE OTHERS MAY HAVE ABSORBED LOSSES SUCH A TRANSACTION COULD BE ACCOMPLISHED WITH A STRADDLE A PARTY DESIRING TO TRANSFER CASH TO ANOTHER'S PERSONAL ACCOUNT FOR LEGAL OR ILLEGAL PURPOSES COULD ENTER INTO A STRADDLE IN A PARTICULARLY VOLATILE COMMODITY SUCH AS CATTLE FUTURES IN THE LATE 1970S AFTER GAINS AND LOSSES WERE GENERATED IN THE OPPOSITE SIDES OF THE STRADDLE THE GAIN SIDE WOULD BE MARKED TO THE BENEFICIARY'S ACCOUNT WHILE THE LOSS SIDE WOULD REMAIN IN THE ACCOUNT OF THE CONTRIBUTOR THE CONTRIBUTOR MIGHT EVEN BE ENTITLED TO USE THE LOSS TO OFFSET OTHER GAINS SUCH A TRANSACTION WOULD BE NOT ONLY WELLHIDDEN FROM GOVERNMENT AUTHORITIES BUT POTENTIALLY TAXDEDUCTIBLE NO DIRECT EVIDENCE OF WRONGDOING HAS BEEN PRODUCED IN THE CASE OF MRS CLINTON'S TRADING ACTIVITY IN FACT NO CONCLUSIVE EVIDENCE OF ANYTHING HAS BEEN PRODUCED IN ORDER TO SETTLE THE LEGITIMATE QUESTIONS SURROUNDING HER TRADES A SATISFACTORY EXPLANATION IS NEEDED FOR HER APPARENTLY LOW INITIAL MARGIN DEPOSIT AND WHETHER THE REQUIREMENTS RELATING TO AN INVESTOR'S MINIMUM NET INCOME AND NET WORTH WERE SATISFIED IN ADDITION THE DETAILS OF HER NUMEROUS INTRAMONTH TRADES SHOULD BE PROVIDED AS WELL AS THE DETAILS OF THE TRADES OF PERSONS WHO MAY HAVE HAD A SPECIAL INTEREST IN HOW WELL SHE DID IF IT IS DISCOVERED THAT CERTAIN INTERESTED PARTIES HAPPENED TO REALIZE LOSSES IN CATTLE FUTURES AT THE SAME TIME AND THEY WERE COMPARABLE IN SIZE TO THE GAINS REPORTED BY MRS CLINTON THIS WOULD AMOUNT TO A SMOKING GUN THIS IS NOT A MATTER OF PARTISAN POLITICS EVEN IF THE PUBLIC HAD NEVER HEARD OF HILLARY RODHAM CLINTON THE CIRCUMSTANCES SURROUNDING HER UNUSUAL GOOD FORTUNE WOULD STILL APPEAR SUSPICIOUS TO ANYONE AWAKE TO ABUSES OF THE COMMODITIES MARKETS IN THIS WRITER'S EXPERIENCE THE NORMAL TRADING WORLD JUST DOESN'T WORK THAT WAY MR BRANDON WAS A CAREER ATTORNEY IN THE OFFICE OF CHIEF COUNSEL OF THE INTERNAL REVENUE SERVICE FROM 1983 TO 1989 DURING THAT TIME HE ALSO SERVED AS HEAD OF THAT DEPARTMENT'S COMMODITY INDUSTRY SPECIALIZATION TEAM WHICH WAS RESPONSIBLE FOR COORDINATING AND DEVELOPING THE IRS'S LEGAL POSITIONS ON TAX ISSUES ARISING IN CONNECTION WITH COMMODITIES TRANSACTIONS 9404070102 940407 DYNAMICS RESEARCH WILL PAY 18 MILLION TO SETTLE FEDERAL SUIT WILMINGTON MASS DYNAMICS RESEARCH CORP SAID IT WILL PAY 18 MILLION TO SETTLE A LAWSUIT BROUGHT AGAINST THE COMPANY BY THE US GOVERNMENT IN 1991 THE DEFENSE CONTRACTOR SAID IT HAS SET ASIDE A RESERVE FOR THE SETTLEMENT AND THAT IT WILL HAVE NO IMPACT ON EARNINGS IN 1994 THE CIVIL ACTION STEMS FROM A DISPUTE BETWEEN DYNAMICS RESEARCH AND THE US AIR FORCE OVER THE PRICING IN 1985 OF A CONTRACT FOR A COMPUTER SYSTEM TO SUPPORT AIRCRAFT MAINTENANCE WHILE WE HAVE NOT AGREED WITH THE GOVERNMENT ALLEGATIONS WE ARE PLEASED TO PUT THIS LAWSUIT BEHIND US DYNAMICS RESEARCH SAID IN A PRESS RELEASE SEPARATELY DYNAMICS RESEARCH REPORTED EARNINGS FOR ITS FIRST QUARTER ENDED MARCH 19 PLUMMETED 40 TO 390000 OR EIGHT CENTS A SHARE FROM 651000 OR 13 CENTS A SHARE IN THE YEARAGO QUARTER REVENUE SLIPPED 1 TO 227 MILLION FROM 23 MILLION THE COMPANY CITED CUTBACKS IN THE DEFENSE PART OF ITS BUSINESS FOR THE EARNINGS DECLINE IN NASDAQ STOCK MARKET TRADING DYNAMICS RESEARCH FELL 25 CENTS TO 450 9404070101 940407 CREDIT RATINGS MOODY'S DOWNGRADES 5 BILLION OF DEBT FOR ATLANTIC RICHFIELD LOS ANGELES MOODY'S INVESTORS SERVICE INC CITED WEAK OIL PRICES IN DOWNGRADING RATINGS FOR ABOUT 5 BILLION OF LONGTERM DEBT FOR ATLANTIC RICHFIELD CO AND ITS GUARANTEED SUBSIDIARIES THE DOWNGRADE TO A2 FROM A1 CONCLUDED A REVIEW ANNOUNCED IN FEBRUARY THE RATING CHANGE AFFECTS THE COMPANY'S DEBENTURES NOTES EUROBONDS MEDIUMTERM NOTES INDUSTRIALREVENUE BONDS AND POLLUTIONCONTROL BONDS AS WELL AS ARCO PIPE LINE CO INDUSTRIALREVENUE BONDS MOODY'S SAID AN ATLANTIC RICHFIELD SPOKESMAN HAD NO COMMENT MOODY'S SAID THE DOWNGRADE REFLECTS AN OUTLOOK FOR A SUSTAINED PERIOD OF WEAKER OIL PRICES PUTTING PRESSURE ON ATLANTIC RICHFIELD EARNINGS AND INHIBITING THE COMPANY'S ABILITY TO INVEST IN NEW EXPLORATION AND DEVELOPMENT ATLANTIC RICHFIELD IS VERY VULNERABLE TO WEAKER OIL PRICES MOODY'S SAID ADDING THAT CRUDE OIL CONTRIBUTES ABOUT 70 TO CURRENT PRODUCTION MOODY'S NOTED THE COMPANY'S CREDIT QUALITY IS SUPPORTED BY SUBSTANTIAL PROVEN RESERVES EQUIVALENT TO 32 BILLION BARRELS OF OIL 9404070100 940407 CREDIT RATINGS ORANGE & ROCKLAND RECEIVES DOWNGRADE ON DEBT FROM S&P NEW YORK STANDARD & POOR'S CORP SAID IT LOWERED ITS RATINGS ON ORANGE & ROCKLAND UTILITIES INC'S SENIOR DEBT BECAUSE OF THE POSSIBLE EFFECTS OF A CRIMINAL INQUIRY ORANGE & ROCKLAND A PEARL RIVER NY UTILITY HOLDING COMPANY SAID IT IS DISAPPOINTED WITH S&P'S DECISION THE RATINGS COMPANY SAID IT LOWERED ORANGE & ROCKLAND'S SENIOR DEBT RATING TO SINGLEA FROM SINGLEAPLUS AND PREFERRED STOCK RATING TO SINGLEAMINUS FROM SINGLEA ALL DEBT RATINGS WERE PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS PENDING A MEETING WITH ORANGE & ROCKLAND MANAGEMENT ADDITIONALLY S&P LOWERED THE SENIOR SECURED DEBT RATING FOR ROCKLAND ELECTRIC CO AN ORANGE & ROCKLAND SUBSIDIARY TO SINGLEA FROM SINGLEAPLUS S&P SAID THAT AS OF DEC 31 ORANGE & ROCKLAND HAD ABOUT 430 MILLION OF TOTAL DEBT OUTSTANDING THE RATING FIRM SAID THE CRIMINAL INVESTIGATION HAS NEGATIVELY AFFECTED SENIOR MANAGEMENT LAST MONTH THE FORMER CHAIRMAN OF THE UTILITY WAS INDICTED ON CHARGES THAT HE MISAPPROPRIATED COMPANY FUNDS A FORMER VICE PRESIDENT PLEADED GUILTY TO MAKING ILLEGAL CAMPAIGN CONTRIBUTIONS INVESTIGATIONS ARE CONTINUING S&P SAID IT HAS CONCERNS ABOUT MANAGEMENT CONTINUITY AND STABILITY AS WELL AS INCREASED UNCERTAINTY SURROUNDING A PENDING ELECTRIC RATE FILING FOR A 171 MILLION INCREASE 9404070099 940407 INTERNATIONAL MEXICAN FIRMS MAY SEE LOSSES ON PESO'S DROP BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE 83 DECLINE IN THE PESO AGAINST THE DOLLAR IN THE FIRST QUARTER WILL HIT SEVERAL MEXICAN COMPANIES WITH A FOREIGNEXCHANGE LOSS PRODUCING SOME DISASTROUS QUARTERLY EARNINGS REPORTS EXPECTATIONS ABOUT THE LOSSES ARE ALREADY RESULTING IN A SELLOFF OF MANY MEXICAN STOCKS YESTERDAY THE MEXICAN STOCK EXCHANGE'S IPC INDEX REBOUNDED 2637 POINTS OR 118 TO CLOSE AT 226052 SO FAR THIS YEAR HOWEVER MEXICAN STOCKS ARE DOWN ABOUT 20 IN DOLLAR TERMS THE PESO REMAINED WEAK AGAINST THE DOLLAR CLOSING AT 33634 PESOS PER DOLLAR THOUGH SOME COMPANIES WILL FIND WAYS TO DEFER LOSSES OVER SEVERAL QUARTERS MANY WILL TAKE THE HIT TO EARNINGS ALL AT ONCE THE NET EFFECT ON THE FIRST QUARTER IS THAT WE ARE GOING TO SEE A LOT OF BLOOD SAYS JORGE SUAREZVELEZ MANAGING DIRECTOR AT AFIN SECURITIES INTERNATIONAL MEXICAN ACCOUNTING RULES SAY THAT A COMPANY WITH DEBT IN DOLLARS MUST RECALCULATE THE PESO VALUE OF THAT DEBT FOR ITS QUARTERLY INCOME AND BALANCE SHEET STATEMENTS IF THE PESO FALLS AGAINST THE DOLLAR THE TOTAL AMOUNT OF DEBT RISES IN PESO TERMS AND COMPANIES MUST ACCOUNT FOR THIS AS A FOREIGNEXCHANGE LOSS IN A PRELIMINARY ANALYSIS ONE MEXICAN BROKER EXPECTS 20 OF MEXICO'S 47 LARGEST COMPANIES TO LOSE 30 OR MORE OF THE QUARTER'S NET INCOME IN A FOREIGNEXCHANGE LOSS THE BROKERAGE FIRM WHICH DECLINED TO BE IDENTIFIED EXPECTS TELEFONOS DE MEXICO SA MEXICO'S MOST CLOSELY WATCHED STOCK TO LOSE 19 OF ITS ESTIMATED FIRSTQUARTER EARNINGS BECAUSE OF CURRENCY MOVEMENTS MEXICAN BANKS COULD ALSO SHOW TRADING LOSSES RELATED TO THE PESO BECAUSE THE CURRENCY'S DECLINE WAS NOT WIDELY EXPECTED THE PESO'S REMARKABLE STABILITY OVER THE PAST TWO YEARS LULLED INVESTORS' CONCERNS ABOUT FOREIGNEXCHANGE RISK AND INVITED MASSIVE INVESTMENT IN MEXICAN STOCKS AND BONDS MEXICAN COMPANIES SOLD BILLIONS OF DOLLARS IN DEBT IN 1993 TO TAKE ADVANTAGE OF THE DEMAND AND CHEAP RATES BUT THE PESO'S TUMBLE POINTS OUT THAT THE EXCHANGE RATE IS A RISK IN MEXICO AN IMPORTANT RISK NOT ONLY FOR COMPANIES BUT FOR THE STRENGTH IN THE WHOLE FINANCIAL SYSTEM SAYS ARTURO ACEVEDO DIRECTOR OF RESEARCH AT VECTOR A MEXICAN BROKER CREDITRATING AGENCIES AND MANY BOND INVESTORS ARE ALREADY STARTING TO LOOK CLOSELY AT THOSE MEXICAN COMPANIES THAT HAVE HEAVY DEBT LOADS IN DOLLARS OR CURRENCIES OTHER THAN PESOS WE ARE GOING TO BE WATCHING THOSE COMPANIES THAT HAVE MORE CURRENCY AND INTERESTRATE EXPOSURE SAYS LACY GALLAGHER AN ASSOCIATE DIRECTOR AT STANDARD & POOR'S CORP THE PESO SLIPPED INTO A NEW LOWER TRADING RANGE FEB 22 AFTER IT WAS LEARNED THAT THE MEXICAN ECONOMY GREW AT ONLY A 04 RATE IN 1993 THE PESO'S DECLINE WAS ALSO EMBRACED BY MONETARY AUTHORITIES HERE AS A WAY TO DISCOURAGE SPECULATIVE INVESTMENT AND INCREASE LONGERTERM DIRECT INVESTMENT FORECASTS ON THE CURRENCY VARY MANY ECONOMISTS BELIEVE MEXICO'S WEAK ECONOMIC GROWTH AND POLITICAL INSTABILITY WILL KEEP THE CURRENCY WEAK AT AROUND 336 PESOS TO THE DOLLAR FOR THE YEAR IN ADDITION INTEREST RATES HERE SEEM TO BE RISING AGAIN WHICH COULD DAMPEN ECONOMIC GROWTH FURTHER YESTERDAY THE GOVERNMENT ANNOUNCED THAT THE YIELD ON 28DAY MEXICAN TREASURY CERTIFICATES ROSE 268 PERCENTAGE POINTS TO 1431 MR ACEVEDO OF VECTOR HOWEVER EXPECTS A LOWER TRADE DEFICIT AND THEREFORE A STRONGER PESO AGAINST THE DOLLAR BY YEAR END HE SAYS THE FOREIGNEXCHANGE IMPACT WILL BE EXTREMELY BAD FOR FIRSTQUARTER RESULTS BUT NOT NECESSARILY FOR SECOND AND THIRDQUARTER RESULTS INDEED SOME MEXICAN COMPANIES ARE EXPECTED TO SHOW STRONG OPERATING PROFITS FOR THE FIRST QUARTER AND THE FULL YEAR ANDREW JAY FRIEDMAN AN ANALYST AT VECTOR EXPECTS MEXICAN MEDIA GIANT TELEVISA SA TO SHOW A 33 NOMINAL RISE IN OPERATING PROFIT IN THE FIRST QUARTER COMPARED WITH A YEAR EARLIER AND A 31 NOMINAL GAIN FOR 1994 EVEN SO TELEVISA CARRIES A BIG LOAD OF DOLLAR DEBT AND COULD TAKE A LARGE FOREIGNEXCHANGE LOSS THIS QUARTER TELEVISA IS REALLY GROWING IN CASH FLOW BUT IT HAS BEEN HIT BY THIS FOREIGNEXCHANGE POSITION MR FRIEDMAN SAYS HE EXPECTS THE STOCK TO TAKE A HIT WHEN EARNINGS ARE REPORTED BUT AT CHEAPER PRICES TELEVISA IS A BUY HE SAYS THAT SEEMS TO BE THE POSTURE OF MANY FUND MANAGERS ROBERTO BARRERA A MUTUAL FUND MANAGER AT MEXICAN BROKER PROBURSA SAYS HE IS TRIMMING HOLDINGS OF BOTTLER FOMENTO ECONOMICO MEXICANO SA OR FEMSA AND CEMENT COMPANY CEMENTOS MEXICANO SA OR CEMEX BECAUSE BOTH COMPANIES COULD SHOW SIGNIFICANT FOREIGNEXCHANGE LOSSES I WOULDN'T BE BUYING MEXICAN STOCKS NOW BECAUSE I WILL BE BUYING IN A CHEAPER MARKET IN MAY ONCE ALL THE BAD EARNINGS NEWS IS OUT HE SAYS XAVIER GUTIERREZ HEAD OF RESEARCH AT PROBURSA SAYS THE FOREIGNEXCHANGE LOSSES WILL NO DOUBT STARTLE MANY INVESTORS BUT THAT COULD PRESENT A GOOD BUYING OPPORTUNITY IF THE MARKET DROPS BECAUSE OF THESE QUARTERLY NUMBERS THEN BUY THE MARKET BECAUSE MANY COMPANIES WILL STILL HAVE GROWTH IN OPERATING PROFITS HE SAYS 9404070098 940407 OLD AMERICA POSTS GAINS HOWE TEXAS OLD AMERICA STORES INC SAID MARCH SALES INCREASED 22 TO 89 MILLION FROM 72 MILLION A YEAR AGO SALES AT STORES OPEN MORE THAN A YEAR ROSE 47 OLD AMERICA IS A RETAILER OF HOMEDECORATING PRODUCTS AND ARTS AND CRAFTS ITEMS 9404070097 940407 MARKETSCAN LOVED THE AD MAY OR MAY NOT BUY THE PRODUCT BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL THE TELEVISION COMMERCIALS CONSUMERS LIKE BEST DON'T NECESSARILY TRANSLATE INTO SALES AT THE CHECKOUT COUNTER SEVEN PACKAGEDGOODS BRANDS WERE AMONG THE 25 CONSUMER PRODUCTS IDENTIFIED BY VIDEO STORYBOARD TESTS INC AS HAVING THE MOST POPULAR AND BEST REMEMBERED COMMERCIALS OF 1993 FIVE OF THOSE BRANDS HOWEVER HAD EITHER FLAT OR DECLINING SALES LAST YEAR IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE THIS PARADOX RAISES ONE OF THE OLDEST AND TRICKIEST QUESTIONS ON MADISON AVENUE DO LIKABLE ADS PRODUCE HIGHER SALES THE ISSUE IS TAKING ON GREATER URGENCY AS CLIENTS INCREASINGLY LINK THEIR AGENCIES' COMPENSATION TO HOW WELL THE ADS PERFORM AND THIS GREATER ACCOUNTABILITY MAY WELL BE IN ORDER A STARTLING 40 OF 20000 CONSUMERS SURVEYED EACH YEAR ARE UNABLE TO THINK OF A SINGLE OUTSTANDING COMMERCIAL SAYS DAVID VADEHRA PRESIDENT OF VIDEO STORYBOARD TESTS THEY CAN'T PLAY BACK ENOUGH DETAILS TO SHOW THAT THEY'RE TALKING ABOUT A SPECIFIC COMMERCIAL HE SAID EVEN WHEN THEY REMEMBER THE ADS PEOPLE AREN'T ALWAYS MOTIVATED TO BUY PLENTY OF CONSUMERS REMEMBERED PEPSICOLA'S ADS WHICH COST PEPSICO 67 MILLION LAST YEAR ACCORDING TO COMPETITIVE MEDIA REPORTING A FIRM THAT TRACKS AD SPENDING PEPSI'S MOST POPULAR SPOT FEATURING BASKETBALL HERO SHAQUILLE O'NEAL CATAPULTED PEPSI TO NO 2 IN THE VIDEO STORYBOARD SURVEY BEHIND MCDONALD'S CORP THE SHAQ EFFORT MADE CONSUMERS SMILE BUT IT DIDN'T MAKE THEM THIRSTY FOR PEPSI SALES OF PEPSICOLA FELL 16 TO 164 BILLION ACCORDING TO INFORMATION RESOURCES IN A YEAR WHEN CARBONATED BEVERAGES IN GENERAL WERE UP 42 AND SALES OF COCACOLA WERE UP 8 TO 177 BILLION PEPSI AND ITS AD AGENCY OMNICOM GROUP'S BBDO SAY JUDGING AN AD'S EFFECTIVENESS BY SALES NUMBERS IS TOO SIMPLISTIC BECAUSE IT FAILS TO TAKE INTO ACCOUNT THE MYRIAD OTHER FACTORS THAT INFLUENCE CONSUMERS SUCH AS SHELF SPACE AND PROMOTIONS ADVERTISING IS A MIND GAME SAYS WILLIAM KATZ BBDO EXECUTIVE VICE PRESIDENT IT CAN MAKE YOU FEEL BETTER ABOUT CHOOSING A BRAND BUT ONLY WHEN THE OTHER VARIABLES ARE IN PLACE IT CAN'T ACCOMPANY YOU TO THE SUPERMARKET AND STEER YOU TO THE BRAND INDEED PEPSI AD CAMPAIGNS PROBABLY GOT TOO MUCH CREDIT FOR THE COMPANY'S SALES INCREASES IN PREVIOUS DECADES ASSERTS PEPSICOLA SENIOR VICE PRESIDENT JEFF CAMPBELL ADVERTISING HAS BECOME A SPECTATOR SPORT AND THE TENDENCY IS TO OVERPLAY ITS IMPORTANCE HE SAYS THE HYPE DISTORTS IT WHETHER WE'RE CREATING IT OR THE PRESS IS CREATING IT SOME ADVERTISING EXPERTS BELIEVE CAMPAIGNS NEED TO RUN SEVERAL YEARS BEFORE THEY CAN SIGNIFICANTLY AFFECT SALES YOU CAN'T GO BY ONE YEAR'S RESULTS SAID MR VADEHRA OF VIDEO STORYBOARD TESTS BUT OVER THE LONG TERM THERE IS DEFINITELY A CONNECTION BETWEN THE ADVERTISING THAT PEOPLE NOTICE AND THE PRODUCTS THEY BUY FOR EXAMPLE HE BELIEVES THE POPULAR WHISKAS CATFOOD CAMPAIGN USING A SMALL COLORFUL BIRD WITH A CHARMING LATIN ACCENT WILL DO BETTER OVER TIME THE SPOTS CREATED BY D'ARCY MASIUS BENTON & BOWLES WAS NO 22 IN VIDEO STORYBOARD'S 1993 RANKINGS YET PRODUCT SALES DECLINED 14 TO 1846 MILLION WHILE THE TOTAL CATFOOD CATEGORY REMAINED FLAT AT 224 BILLION A SPOKESWOMAN FOR MARS INC'S KAL KAN FOODS UNIT SAID THE LOVEBIRD INTRODUCED IN LATE 1992 GIVES CONSUMERS A REASON TO LIKE AND FEEL GOOD ABOUT WHISKAS THE SALES DECLINE WAS PARTIALLY DUE TO A PRICE INCREASE IN 1993 SHE SAID ADDING THAT THE COMPANY IS AIMING TO IMPROVE PROFIT MARGINS RATHER THAN BOOST VOLUME YET EVEN ENDURING POPULAR AD CAMPAIGNS DON'T NECESSARILY IGNITE SALES RALSTON PURINA CO'S ENERGIZER BUNNY CAMPAIGN FINISHED AS THE 13TH MOST POPULAR TV CAMPAIGN AFTER FIVE YEARS ON THE AIR BUT SALES OF THE BATTERIES WERE UP JUST 38 TRAILING THE CATEGORY'S GROWTH OF 5 RALSTON WHICH SPENT AN ESTIMATED 50 MILLION ON TV ADVERTISING FOR THE BUNNY SAID ITS ALKALINE BATTERY BUSINESS IN NORTH AMERICA IS GROWING WELL AND THERE AREN'T ANY PLANS TO RETIRE THE BUNNY NESTLE SA IS ALSO CONTINUING ITS IMMENSELY POPULAR SOAPOPERA COMMERCIAL STARRING TONY AND SHARON WHO MEET FLIRT AND GO TO PARIS ALL BECAUSE OF TASTER'S CHOICE INSTANT COFFEE BUT IN 1993 A YEAR IN WHICH THE CAMPAIGN WAS RANKED THE EIGHTH MOST POPULAR AND TONY AND SHARON HAD THEIR FIRST KISS SALES OF TASTER'S CHOICE WERE DOWN 27 TO 1735 MILLION THE INSTANTCOFFEE CATEGORY HOWEVER WAS OFF EVEN MORE DOWN 58 TO 8098 MILLION TASTER'S CHOICE'S AD AGENCY INTERPUBLIC GROUP'S MCCANNERICKSON SAYS SALES OF TASTER'S CHOICE HAVE INCREASED 10 SINCE THE CAMPAIGN BEGAN IN 1990 AND NESTLE NOTES THAT THE BRAND'S MARKET SHARE IS GROWING DESPITE CONSUMERS' DISENCHANTMENT WITH INSTANT COFFEE SOME CONSUMERS HAVE EVEN TOLD NESTLE BEVERAGE THAT AFTER VIEWING THE COMMERCIAL THEY DECIDED TO TRY TASTER'S CHOICE AND NOW DRINK THE COFFEE REGULARLY NESTLE SAID IN A STATEMENT SOMETIMES LONGRUNNING CAMPAIGNS STRAY TOO FAR FROM THE PRODUCT THEY PITCH SAYS JIM HILLSON SENIOR VICE PRESIDENT OF PHASE ONE A BEVERLY HILLS CALIF ADVERTISING RESEARCH FIRM WHEN THE TASTER'S CHOICE CAMPAIGN STARTED THE COFFEE MOTIVATED THE SCENARIOS IN WHICH THESE TWO PEOPLE HAD THEIR ENCOUNTERS MR HILLSON SAYS NOW THE CONCERN WITH COFFEE IS BECOMING MORE INCIDENTAL EVEN WHEN SALES ARE ROSY ADVERTISERS ARE RELUCTANT TO GIVE THEIR ADS TOO MUCH CREDIT FOR EXAMPLE COCACOLA CO SPENT AN ESTIMATED 95 MILLION LAST YEAR TO AIR COMMERCIALS CREATED BY THE HOLLYWOOD TALENT AGENCY CREATIVE ARTISTS AGENCY THAT STARRED MUTE LUMBERING POLAR BEARS THE SPOTS LANDED IN THIRD PLACE ON VIDEO STORYBOARD'S SURVEY LAST YEAR COKE'S HIGHEST FINISH SINCE 1986 SALES MEANWHILE INCREASED 8 TO 177 BILLION BUT COKE BALKS AT EQUATING GOOD ADVERTISING AND STRONG SALES WE WOULD ASSUME THAT CERTAINLY THE ADVERTISING HAD A POSITIVE EFFECT ON SALES A COKE SPOKESMAN SAID BUT I CAN'T SAY IT EQUATES TO 8 THERE ARE SO MANY OTHER THINGS GOING ON 9404070096 940407 WHO'S NEWS STANDARD COMMERCIAL CORP STANDARD COMMERCIAL CORP WILSON NC THE COMPANY'S BOARD APPROVED SENIORMANAGEMENT CHANGES TO REFOCUS ITS CORE LEAFTOBACCO AND WOOL BUSINESSES J ALEC G MURRAY 57 YEARS OLD CHIEF EXECUTIVE OFFICER WILL ASSUME THE ADDITIONAL TITLE OF PRESIDENT RELINQUISHING HIS ROLES AS VICE CHAIRMAN AND CHAIRMAN OF THE WOOL DIVISION AS PRESIDENT MR MURRAY SUCCEEDS MARVIN W COGHILL 60 FORMER CHIEF OPERATING OFFICER WHO WILL FOCUS ON DUTIES AS CHAIRMAN OF THE TOBACCO DIVISION J ANTHONY JOHNSTON 59 WILL SUCCEED MR MURRAY AS CHAIRMAN OF THE WOOL DIVISION REMAINING MANAGING DIRECTOR OF THE UNIT ERY W KEHAYA 70 CHAIRMAN WILL BECOME MORE ACTIVE IN EXECUTIVE MANAGEMENT 9404070095 940407 WHO'S NEWS BANTAM DOUBLEDAY NAMES PEPSICO AIDE TO RUN SALES DIVISION NEW YORK BANTAM DOUBLEDAY DELL PUBLISHING GROUP INC SAID IT NAMED RICHARD ROUTHIER TO THE NEW POSITION OF PRESIDENT OF ITS SALES AND MERCHANDISE DIVISION MR ROUTHIER 41 YEARS OLD COMES TO THE US PUBLISHING SUBSIDIARY OF GERMAN MEDIA COMPANY BERTELSMANN AG FROM PEPSICO INC PURCHASE NY WHERE HE HAD BEEN A SALES AND MARKETING EXECUTIVE FOR MORE THAN 15 YEARS MOST RECENTLY MR ROUTHIER WAS A SENIOR VICE PRESIDENT OVERSEEING 24 BILLION IN FOUNTAIN BOTTLE AND CAN SALES AND A 135MEMBER SALES AND MARKETING ORGANIZATION IN HIS NEW POSITION MR ROUTHIER WILL BE RESPONSIBLE FOR LEADING THE COMPANY'S SALES EFFORTS FOR BANTAM DOUBLEDAY AND DELLDELACORTE ADULT HARDCOVER TRADE AND MASSMARKET TITLES BDD YOUNG READERS BOOKS AND BDD AUDIO HE WILL REPORT TO JACK HOEFT BANTAM DOUBLEDAY DELL PRESIDENT AND CHIEF EXECUTIVE OFFICER ALSO A PEPSICO ALUMNUS MR HOEFT SAID MR ROUTHIER IS UNIQUELY EQUIPPED TO MAKE US EVEN BETTER AT WHAT WE DO WELL SELLING OUR BOOKS 9404070094 940407 CONTINENTAL AIR SEEKING TO SELL COMMUTER UNIT CARRIER IS HOLDING TALKS WITH SEVERAL GROUPS AS CHANGES CONTINUE BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON CONTINENTAL AIRLINES IS IN DISCUSSIONS WITH SEVERAL GROUPS ABOUT SELLING ITS CONTINENTAL EXPRESS COMMUTER DIVISION IT ALSO PLANS TO INCREASE FURTHER ITS LOWFARE SHORTHAUL SERVICE JUNE 15 AS THE CARRIER CONTINUES A RESTRUCTURING THAT BEGAN LAST YEAR IN A TAPERECORDED MESSAGE TO EMPLOYEES ROBERT R FERGUSON III CONTINENTAL'S CHIEF EXECUTIVE OFFICER DIDN'T IDENTIFY POTENTIAL SUITORS FOR THE DIVISION BUT THE MOVE IS PART OF SEVERAL STEPS THE AIRLINE WILL BE TAKING THAT WILL INVOLVE SUBSTANTIAL CHANGES TO THE WAY YOU DO BUSINESS HE TOLD EMPLOYEES MANY OF YOU WILL BE IMPACTED HE DIDN'T SPELL OUT ALL THE CHANGES BUT HE IS MEETING WITH EMPLOYEES THROUGHOUT THE CONTINENTAL ROUTE SYSTEM THIS WEEK CONTINENTAL WHICH HAS A TOTAL OF 43000 EMPLOYEES ALSO IS ELIMINATING ABOUT 1000 JOBS THROUGH ATTRITION AND FURLOUGHS MR FERGUSON ALSO WILL ELABORATE ON THE COMPANY'S NEW EMPLOYEE COMPENSATION PLAN UNVEILED THIS WEEK WHICH INVOLVES RELEASING PAY THAT HAD BEEN FROZEN THEN CUT IN 1991 WHEN CONTINENTAL WAS IN CHAPTER 11 BANKRUPTCYLAW PROTECTION FROM ITS CREDITORS AMONG OTHER ASPECTS OF THE PLAN THE COMPANY ALSO WILL MAKE A ONETIME GRANT OF ONE MILLION SHARES OF STOCK OR 4 OF THE COMPANY'S EQUITY OUTSTANDING THE ANNOUNCEMENT OF HARD TIMES AHEAD FOLLOWS RESTORATION OF PAY INCREASES AND REFLECTS AN INDUSTRY TREND OF AIRLINES TRYING TO PERSUADE EMPLOYEES TO DO MORE WITH LESS THE BUZZWORD IN LABOR IS PRODUCTIVITY AND THE GOAL IS TO GET THE JOB DONE WITH FEWER PEOPLE AND PAY THE PEOPLE YOU KEEP BETTER SAYS SAM BUTTRICK AN AIRLINE ANALYST WITH KIDDER PEABODY CONTINENTAL PAYS LOWER WAGES THAN MOST OF ITS AIRLINE RIVALS BUT IT WAS UNLIKELY TO MAINTAIN THAT ADVANTAGE FOREVER ESPECIALLY WHEN ASKING ITS EMPLOYEES TO WORK HARDER THE CONTINENTAL EXPRESS DIVISION HAS 96 SMALLER AIRCRAFT FLYING 700 FLIGHTS DAILY TO 68 CITIES FROM CONTINENTAL HUBS IN HOUSTON NEWARK DENVER AND CLEVELAND IT EMPLOYS 2500 WORKERS SELLING OFF THE DIVISION MIGHT ENABLE CONTINENTAL TO PROVIDE PASSENGER TRAFFIC TO THOSE HUBS MORE CHEAPLY THAN IT DOES NOW AN AIRLINE SPOKESMAN WOULDN'T COMMENT IN HIS MESSAGE TO EMPLOYEES MR FERGUSON SAID THERE WASN'T ANY SALE PENDING THE MOST LIKELY SUITOR IS MESA AIRLINES A HIGHLY PROFITABLE REGIONAL AIRLINE BASED IN FARMINGTON NM THAT HAS BEEN ON A GROWTH SPURT AND WHICH CURRENTLY IS IN TALKS TO BUY CCAIR INC OF CHARLOTTE NC MESA ALSO IS A PARTNER IN AN INVESTMENT GROUP BIDDING FOR AMERICA WEST AIRLINES THAT INCLUDES CONTINENTAL FIDELITY INVESTMENTS AND CONTINENTAL CHAIRMAN DAVID BONDERMAN GARY RISLEY MESA'S VICE PRESIDENT LEGAL AFFAIRS SAID HE WOULDN'T COMMENT ALTHOUGH HE ADDED WE'RE ALWAYS INTERESTED IN ANY DEALS THAT COME UP CONTINENTAL WHICH HAS SWITCHED MANY OF ITS FLIGHTS TO SHORTHAUL LOWFARE PEANUTS FLIGHTS DURING THE PAST SIX MONTHS IS SCHEDULED TO GO TO PHASE FOUR OF THE CHANGEOVER STARTING JUNE 15 THE AIRLINE WOULDN'T COMMENT BUT PEOPLE FAMILIAR WITH THE MOVE SAY IT WILL INCREASE THE NUMBER OF CITIES THE CARRIER SERVES WITH ITS CHEAPER CALITE SERVICE TO 45 FROM THE CURRENT 26 THE AIRLINE'S THIRD PHASE OF SUCH SERVICE BEGAN MARCH 9 WHEN IT CUT FLIGHTS OUT OF ITS MONEYLOSING DENVER HUB AND SWITCHED THEM TO THE SOUTHEAST 9404070093 940407 QUARTERLY MUTUAL FUNDS REVIEW FOREIGN FUNDS GO SMALL BUT IN DIVERSE WAYS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL MAYBE IT ISN'T SUCH A SMALL WORLD IN THE PAST FEW YEARS MUTUALFUND COMPANIES HAVE INTRODUCED A SLEW OF FUNDS THAT SPECIALIZE IN SMALLER FOREIGN MARKETS AND COMPANIES BUT THESE FUNDS USE WIDELY DIFFERING INVESTMENT STRATEGIES IN 1994 PICKING THE RIGHT FUND HAS MEANT THE DIFFERENCE BETWEEN MAKING MONEY AND LOSING A BUNDLE SOME FOREIGNSTOCK FUNDS SUCH AS FIDELITY SOUTHEAST ASIA FUND AND T ROWE PRICE NEW ASIA FUND FAVOR THE SMALL EMERGING STOCK MARKETS OF DEVELOPING COUNTRIES THESE FUNDS WERE HIT HARD IN 1994'S FIRST QUARTER OTHER FOREIGNSTOCK FUNDS SUCH AS DFA JAPANESE SMALL COMPANY PORTFOLIO AND TWEEDY BROWNE GLOBAL VALUE FUND SPECIALIZE IN SMALLERCOMPANY STOCKS IN DEVELOPED COUNTRIES THESE FUNDS HAVE BEEN STRONG PERFORMERS IN THIS YEAR'S FIRST THREE MONTHS AND SOME OBSERVERS THINK FURTHER GAINS LIE AHEAD IF YOU'RE LOOKING OUT A DECADE OR MORE I'D PREFER TO BE IN AN EMERGINGMARKETS FUND BECAUSE I'M A BELIEVER IN THE CONCEPT SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER BUT IF YOU'RE LOOKING OUT OVER THE NEXT COUPLE OF YEARS I THINK THE SMALLER STOCKS IN DEVELOPED MARKETS LOOK PRETTY GOOD BECAUSE THESE STOCKS HAVE BEEN DEPRESSED AND SHOULD BOUNCE BACK AS EUROPE AND JAPAN EMERGE FROM RECESSION EUROPEAN AND JAPANESE SMALL STOCKS POSTED DECENT GAINS IN 1993 BUT THEY HAD GRIM RESULTS IN THE PRIOR THREE YEARS EMERGINGMARKETS FUNDS BY CONTRAST HAVE BEEN AMONG THE FUND INDUSTRY'S TOP PERFORMERS IN RECENT YEARS ONLY TO STUMBLE OF LATE NICHOLAS CARN MANAGER OF TNE INTERNATIONAL EQUITY FUND RECKONS EMERGING MARKETS ARE IN FOR A ROUGH SPELL I'M PRETTY BEARISH ON MALAYSIA AND HONG KONG PARTICULARLY HONG KONG SAYS MR CARN PARTLY IT'S BECAUSE THEY'VE GONE UP A LOT PARTLY IT'S BECAUSE HONG KONG WHICH IS SOLD AS A CHINA STORY IS REALLY A DOMESTIC REALESTATE STORY IF REALESTATE PRICES HEAD DOWN IT WILL HAMMER EARNINGS AMONG HONG KONG COMPANIES MEANWHILE MR CARN THINKS THE OUTLOOK IS BRIGHT FOR SMALLER COMPANIES IN DEVELOPED MARKETS SMALLCOMPANY STOCKS TEND TO DO WELL DURING ECONOMIC RECOVERIES BECAUSE PROFITABILITY AMONG SMALLER COMPANIES IS ESPECIALLY SENSITIVE TO THE ECONOMIC CYCLE WE TEND TO BE A BLUERCHIP FUND HE SAYS BUT RIGHT NOW WE'VE GOT A CONCENTRATION TOWARDS THE LOWER END OF THE CAPITALIZATION RANGE MEANING THE COMPANIES WITH LOWER STOCKMARKET VALUES BUT US INVESTORS WHO WANT TO BET ON SMALLCOMPANY STOCKS IN DEVELOPED MARKETS WHILE AVOIDING EMERGING MARKETS WON'T FIND IT EASY MUTUAL FUNDS THAT SPECIALIZE IN SMALLER FOREIGN STOCKS ALSO TEND TO INVEST IN EMERGING MARKETS THAT'S THE CASE WITH NOLOAD NOCOMMISSION FUNDS SUCH AS FOUNDERS PASSPORT FUND MONTGOMERY INTERNATIONAL SMALL CAP FUND T ROWE PRICE INTERNATIONAL DISCOVERY FUND AND SCUDDER GLOBAL SMALL COMPANY FUND FOUNDERS PASSPORT FOR INSTANCE HAS THE BULK OF ITS ASSETS INVESTED IN DEVELOPED MARKETS BUT IT ALSO HAS A 15 STAKE IN EMERGING MARKETS FUND MANAGER MICHAEL GERDING SAYS HIS EMERGINGMARKETS EXPOSURE RECENTLY HURT HIS FUND WHICH LOST MONEY IN THE FIRST QUARTER THE FUNDAMENTALS IN THE EMERGING MARKETS HAVEN'T CHANGED AT ALL MR GERDING SAYS THERE ARE A LOT OF SMALL COMPANIES IN THE EMERGING MARKETS THAT I THINK WILL DO TERRIFICALLY WELL ARE THERE ANY FOREIGNSTOCK FUNDS THAT INVEST EXCLUSIVELY IN SMALLCOMPANY STOCKS IN DEVELOPED MARKETS NOT MANY THE LIST INCLUDES DFA CONTINENTAL SMALL COMPANY PORTFOLIO DFA JAPANESE SMALL COMPANY AND DFA UNITED KINGDOM SMALL COMPANY PORTFOLIO THESE THREE FUNDS HAVE BEEN AMONG THE BESTPERFORMING FUNDS SO FAR IN 1994 BUT INDIVIDUAL INVESTORS CAN BUY THE FUNDS ONLY IF THEY GO THROUGH A REGISTERED INVESTMENT ADVISER THE BEST BET FOR SMALL INVESTORS IS PROBABLY TWEEDY BROWNE GLOBAL VALUE SAYS KENNETH GREGORY EDITOR OF THE NOLOAD FUND ANALYST AN ORINDA CALIF NEWSLETTER THE FUND CAN BUY COMPANIES OF ALL SIZES BUT RIGHT NOW IT IS HEAVILY INVESTED IN SMALLER EUROPEAN STOCKS MR GREGORY THINKS THAT THESE COMPANIES WILL BENEFIT AS INTEREST RATES DECLINE AND ECONOMIES RECOVER IN EUROPE HE ALSO NOTES THAT EUROPEAN STOCKS ARE RELATIVELY CHEAP COMPARED WITH THOSE IN OTHER MARKETS FROM A FUNDAMENTAL STANDPOINT YOU CAN GET SOME PRETTY GOOD VALUATIONS IN THE SMALLCAP SECTOR MR GREGORY SAYS SMALLCAPS OVERSEAS REALLY HAVE NOT BEEN AN AREA OF FOCUS AMONG MONEY MANAGERS THE KEY IS WILL THERE BE MORE INTEREST IN THE AREA THAT WILL REALLY BE THE DRIVING FACTOR I THINK US INVESTORS LOOKING OVERSEAS FOR BARGAINS WILL PLAY AN IMPORTANT ROLE HE NOTES THAT IN THE PAST INTERNATIONAL STOCKPICKERS HAVE TENDED TO FOCUS ON PICKING THE RIGHT COUNTRIES BASED ON THE OUTLOOK FOR EACH COUNTRY'S ECONOMY CURRENCY AND STOCK MARKET ONCE THEY SETTLED ON THEIR COUNTRY ALLOCATION MANAGERS WOULD THEN BUILD THEIR POSITION IN EACH MARKET BY BUYING A SMATTERING OF BLUECHIP STOCKS THIS STRATEGY MEANT SMALLCOMPANY STOCKS TENDED TO GET NEGLECTED MR GREGORY BELIEVES THAT WILL CHANGE AS MORE US STOCKPICKERS VENTURE ABROAD US MANAGERS USUALLY AVOID GUESSING THE DIRECTION OF THE STOCK MARKET AND INSTEAD ENDEAVOR TO BUY STOCKS THAT ARE ATTRACTIVE BASED ON THE OUTLOOK FOR THAT COMPANY'S BUSINESS OVER THE NEXT COUPLE OF YEARS I THINK THERE'S VERY GOOD POTENTIAL IN EUROPE AND IT'S A LOT SAFER THERE THAN THE EMERGING MARKETS MR GREGORY SAYS BUT OVER FIVE YEARS EMERGING MARKETS WILL PROBABLY MAKE YOU MORE MONEY THE FIVE FOREIGNSTOCK FUNDS BELOW SPECIALIZE IN SMALLERCOMPANY STOCKS SOME OF THE FUNDS ALSO INVEST IN EMERGING MARKETS ALL FIVE FUNDS ARE OPEN TO SMALL INVESTORS AND CAN BE BOUGHT WITHOUT PAYING A SALES COMMISSION 9404070092 940407 INTERNATIONAL BRIEF SKANDINAVISKA ENSKILDA BANKEN SWEDISH BANK AGREES ON SALE OF ITS SWISS UNIT TO SANDOZ SKANDINAVISKA ENSKILDA BANKEN OR SE BANKEN REACHED AGREEMENTS TO SELL BANQUE SCANDINAVE EN SUISSE FOR AN UNDISCLOSED SUM SWEDEN'S LEADING BANK SAID IT SOLD ITS GENEVABASED SUBSIDIARY KNOWN AS BSS TO THE FAMILY TRUST THAT CONTROLS SANDOZ AG TERMS OF THE TRANSACTION WEREN'T DISCLOSED BY THE COMPANIES BUT SE BANKEN SAID IN A STATEMENT THAT THE DIVESTMENT WILL HAVE A POSITIVE IMPACT ON EARNINGS THE SALE IS IN LINE WITH SE BANKEN'S STRATEGY TO STREAMLINE OPERATIONS TO CORE ACTIVITIES AT THE SAME TIME IT PUTS BSS INTO THE HANDS OF A STRONG SWISS OWNER THAT WILL ENABLE IT TO PUSH AHEAD WITH EXPANSION SE BANKEN SAID BSS ACTIVITIES ARE CONCENTRATED TO WEALTH AND ASSET MANAGEMENT THE GROUP REPORTED EARNINGS LAST YEAR OF 22 MILLION SWISS FRANCS 152 MILLION 9404070091 940407 ENTERPRISE DOES INVESTOR'S PURSE HOLD HAPPINESS PARTNERS ASK BEHIND THEIR REFUSAL OF MUCHNEEDED CASH LIES THE CRAVING FOR NO STRINGS BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL IT SOUNDED LIKE A PERFECT SOLUTION TO A STRUGGLE FOR MONEY FOR NEARLY THREE YEARS NEIL HANDWERKER AND BETH JANOFF SCRAPED AND SCRATCHED TO BUILD THEIR FLEDGLING MANAGEMENTEDUCATION BUSINESS LATE LAST YEAR A BIGGER COMPANY OFFERED THE PARTNERS 700000 FOR A 70 STAKE IN THE VENTURE THE DREAM OFFER POSED A WRENCHING DILEMMA HOWEVER ONE FACING THOUSANDS OF ENTREPRENEURS EVERY YEAR WHETHER TO SACRIFICE THE INDEPENDENCE THEY CRAVE FOR THE MONEY THEY NEED THE TWO PARTNERS HAD QUIT THEIR JOBS AT A NEW YORK CITY MANAGEMENTEDUCATION FIRM STARTING BUSINESS DEVELOPMENT ASSOCIATES INC IN EARLY 1991 BECAUSE THEY FOUND THEIR SALARIED POSITIONS FRUSTRATING THE NEW VENTURE WHICH ORGANIZES CONFERENCES FOR CORPORATE EXECUTIVES AND LAWYERS TOOK OFF THOUGH THE COMPANY BARELY BROKE EVEN LAST YEAR ITS REVENUE CLIMBED TO 15 MILLION FROM 35000 IN ITS FIRST YEAR THE PARTNERS SAY REVENUE IS EXPECTED TO REACH 31 MILLION IN 1994 ALL ALONG THE PARTNERS CHAFED UNDER A CONSTRAINT THAT PLAGUES MOST STARTUPS A DEARTH OF CAPITAL TO FINANCE GROWTH WHEN THE CHIEF EXECUTIVE OF A WEST COAST MULTIMEDIA COMPANY OFFERED TO BUY A STAKE IN THEIR COMPANY FOR 700000 AS WELL AS NUMEROUS INCENTIVES THE PARTNERS WERE TEMPTED THE 100000 THAT EACH PLANNED TO POCKET COULD DO WONDERS FOR THEIR PERSONAL LIVES FOR INSTANCE MR HANDWERKER SAYS IT WOULD ENABLE HIM TO MOVE OUT OF A CRAMPED MANHATTAN APARTMENT WITH HALF A REFRIGERATOR AND NO VIEWS AND THE 500000 THAT THE PARTNERS PLANNED TO PUMP INTO THE COMPANY WOULD ACCELERATE THE LAUNCH OF NEWSLETTERS AND OTHER PROJECTS BUT THE DEAL WOULD LEAVE THE PARTNERS BEHOLDEN TO AN OUTSIDER WHILE THEIR SUITOR PROMISED THEM AUTONOMY AS LONG AS THE COMPANY PERFORMED WELL HE WOULD STILL BE BOSS THEY REALIZED IT WAS A TOUGH DECISION BOTH PARTNERS HAVE ALWAYS NURSED AN ENTREPRENEURIAL STREAK MS JANOFF STARTED HER OWN ENVIRONMENTAL CLUB IN THE SIXTH GRADE ORGANIZING PAPER DRIVES TO FUND IT HER FATHER AND HER UNCLE OWNED THEIR OWN BUSINESSES I WANTED THAT FREEDOM TOO SHE SAYS AS A TEENAGER MR HANDWERKER WHO ENJOYED RISKTAKING PLAYED THE HORSES AFTER EARNING A LAW DEGREE FROM FORDHAM UNIVERSITY HE CONCLUDED THAT A LAW CAREER WASN'T FOR HIM EVERYTHING WAS DONE BY THE BOOK THERE WAS NO CREATIVITY HE SAYS BOTH MR HANDWERKER NOW 35 YEARS OLD AND MS JANOFF 33 SPENT SEVERAL YEARS IN MANAGEMENT JOBS WITH A NEW YORK FIRM THAT ORGANIZES SEMINARS ON REGULATORY ISSUES THEY STAYED BECAUSE THEY WERE ALLOWED TO RUN THEIR OWN SHOW WHEN THEY LATER GREW DISENCHANTED WITH THE WAY THE COMPANY WAS RUN THEY QUIT IN DECEMBER 1990 FOR A WHILE THE TWO DRIFTED ALONG SEPARATE PATHS MAKING ENDS MEET THROUGH PARTTIME CONSULTING WORK MR HANDWERKER ALSO TRIED HIS HAND AT WRITING A SCREEN COMEDY ABOUT URBAN LIFE AND HE TOYED WITH THE IDEA OF OPENING A HEALTHY FASTFOOD RESTAURANT UNTIL A CONSULTANT ADVISED HIM TO RUN AS FAST AS YOU CAN FROM THAT IDEA I THINK A LOT OF PEOPLE SHY AWAY FROM WHAT THEY KNOW BEST MR HANDWERKER SAYS IT TOOK AWHILE FOR BETH AND I TO GET BACK INTO THE FORPROFIT CONFERENCE BUSINESS THAT MOMENT CAME IN MARCH 1991 MS JANOFF IN WASHINGTON FOR JOB INTERVIEWS PHONED HER FORMER COLLEAGUE ON AN IMPULSE TO PROPOSE A PARTNERSHIP SHE RECALLS HIS RESPONSE YEAH SURE LET'S GIVE IT A TRY THEIR STARTUP CAPITAL CONSISTED OF HER 5000 IN SAVINGS HE SET UP AN OFFICE IN HIS NEW YORK APARTMENT SHE RENTED SPACE IN A LAWYER'S OFFICE IN WASHINGTON FOR 100 A MONTH SHE GOT A TABLE PLACED AGAINST A WALL IN A CONFERENCE ROOM A PHONE A FAX LINE AND A PRESTIGIOUS ADDRESS TO GET OUR NAME OUT THE PARTNERS COLLABORATED WITH MEDIA GIANT MCGRAWHILL INC ON THEIR FIRST CONFERENCE DEALING WITH ELECTRIC POWER AND THE ENVIRONMENT IN OCTOBER 1992 MR HANDWERKER SAYS THEY ORGANIZED FOUR CONFERENCES IN 1992 AND 22 LAST YEAR THEY CURRENTLY HAVE 61 SCHEDULED FOR 1994 LAST MONTH THEY LAUNCHED THEIR FIRST NEWSLETTER ENVIRONMENTAL CORPORATE COUNSEL REPORT THEY MOVED INTO AN 800SQUARE FOOT OFFICE IN MANHATTAN AND ARE LOOKING TO TRIPLE THAT SPACE IN WASHINGTON IN THE PAST FEW MONTHS THEY HAVE INCREASED THEIR STAFF TO 10 FROM SEVEN THEY SAY THEY COULD HAVE GROWN EVEN FASTER HOWEVER IF THEY HAD MORE CASH BECAUSE THEY HAD NO COLLATERAL BANKS WOULDN'T LEND TO THEM FORCING THE PARTNERS TO DEPEND ON CASH FLOW TO FINANCE THEIR OPERATIONS AS THEY WEIGHED THE WEST COAST INVESTOR'S OFFER THEY THOUGHT ABOUT WHAT THEY COULD DO WITH THE MONEY WE COULD HIRE MORE PEOPLE UPGRADE OUR EQUIPMENT AND GEAR UP TO DO MORE NEWSLETTERS AND BOOKS MAYBE EVEN GO ONLINE WITH SOME OF OUR PRODUCTS MR HANDWERKER SAYS MOREOVER THEY REALIZED THEY WOULD BENEFIT FROM THE INVESTOR'S FINANCIAL ACUMEN AND MEDIABUSINESS EXPERTISE NEGOTIATIONS DRAGGED ON FROM DECEMBER TO LATE MARCH THE PARTNERS COULDN'T MAKE UP THEIR MINDS THEIRS IS A VERY COMMON DILEMMA OBSERVES ROCK HANKIN A BUSINESS CONSULTANT IN SANTA MONICA CALIF HIS ADVICE TO MR HANDWERKER AND MS JANOFF SAY NO SELLING A CONTROLLING INTEREST MIGHT MAKE SENSE FOR BUSINESS OWNERS IN THEIR 50S OR 60S HE SAYS OR EVEN FOR FEUDING YOUNGER PARTNERS BUT FOR YOUNG ENTREPRENEURS ON A ROLL I DON'T THINK THERE IS ANY PRICE ON INDEPENDENCE SAYS MR HANKIN A FORMER PARTNER AT ACCOUNTING AND CONSULTING FIRM PRICE WATERHOUSE ANOTHER CALIFORNIA CONSULTANT DAVID NELSON SAYS HE WOULD ADVISE THE PAIR AGAINST SELLING OFF A MAJORITY STAKE IN THEIR FIRM EVENTUALLY MOST FOUNDERS OF FASTGROWTH COMPANIES DO GIVE UP 100 OWNERSHIP MR NELSON SAYS THE TRICK HE NOTES IS TO PREVENT ANY SINGLE INVESTOR FROM GAINING MAJORITY CONTROL THUS HE COUNSELS ENTREPRENEURS TO KEEP THEIR INITIAL FINANCING AS SMALL AS POSSIBLE AND TO SPREAD OWNERSHIP AROUND IN SUBSEQUENT PLACEMENTS THAT IS EXACTLY WHAT MR NELSON DID THE FORMER SENIOR EXECUTIVE AT HEWLETTPACKARD CO LAUNCHED NELSON ANALYTICAL CORP IN CUPERTINO CALIF WITH A PARTNER IN 1980 INITIALLY THEY SOLD 40 OF THE COMPANY FOR 300000 AND WENT THROUGH FOUR ADDITIONAL FINANCINGS ALTHOUGH HIS PERSONAL STAKE ULTIMATELY SHRANK TO 17 THE SALE OF NELSON ANALYTICAL TO PERKINELMER CORP IN 1988 MADE HIM A WEALTHY MAN MR NELSON SAYS JUST LAST WEEK MR HANDWERKER AND MS JANOFF FINALLY REACHED A DECISION ON MARCH 29 THEY PHONED THEIR SUITOR WHO REQUESTS ANONYMITY TO REJECT HIS OFFER THEIR REASON WAS SIMPLE I STARTED THIS BUSINESS BECAUSE I WAS TIRED OF WORKING FOR SOMEBODY ELSE MS JANOFF SAYS I'M NOT READY TO HAND THAT OFF ADDS MR HANDWERKER YOU GET A FIRM OFFER LIKE THAT AND IT HELPS CLARIFY WHAT YOU WANT I WANT TO BE MY OWN BOSS 9404070090 940407 BUSINESS BRIEF POLICY MANAGEMENT REPORTS EARNINGS FOR LATE '93 CHAIRMAN DISAPPOINTED' COLUMBIA SC ONE YEAR TO THE DAY AFTER ITS SHARE PRICE COLLAPSED ON EXPECTATIONS OF REVENUE SHORTFALLS POLICY MANAGEMENT SYSTEMS CORP REPORTED 1993 EARNINGS AS WELL AS THIRDQUARTER AND FOURTHQUARTER FIGURES IN WHICH ITS CHAIRMAN SAID HE WAS DISAPPOINTED THE INSURANCESOFTWARE CONCERN REPORTED THIRDQUARTER EARNINGS OF 346000 OR TWO CENTS A SHARE ON REVENUE OF 1089 MILLION FOURTHQUARTER NET INCOME TOTALED 39 MILLION OR 17 CENTS A SHARE ON REVENUE OF 1083 MILLION FOR THE YEAR THE COMPANY REPORTED A NET LOSS OF 561 MILLION OR 246 A SHARE ON REVENUE OF 4531 MILLION THE 1993 FIGURES INCLUDE AFTERTAX CHARGES OF 762 MILLION OR 329 A SHARE PRIMARILY TO REDUCE THE VALUE OF THE COMPANY'S HEALTHINSURANCE ASSETS AND TO RESERVE FOR THE COST OF RESTRUCTURING THAT PORTION OF ITS BUSINESS COMPARATIVE FIGURES FOR YEAREARLIER PERIODS WEREN'T AVAILABLE AS PREVIOUSLY REPORTED AUDIT REPORTS COVERING 1990 1991 AND 1992 HAVE BEEN WITHDRAWN COOPERS & LYBRAND IS CURRENTLY PERFORMING AN AUDIT OF POLICY MANAGEMENT'S 1992 STATEMENTS THAT AUDIT AS WELL AS AUDITS FOR PREVIOUS YEARS THE COMPANY HAS SAID WILL BE COMPLETED AS SOON AS POSSIBLE IN APRIL 1993 POLICY MANAGEMENT DISCLOSED THAT FIRSTQUARTER RESULTS WOULD FALL WELL BELOW THE COMPANY'S EXPECTATIONS BECAUSE SEVERAL CONTRACTS HADN'T CLOSED AS EXPECTED THAT NEWS PROMPTED POLICY MANAGEMENT SHARES TO DROP 43 OR 3625 IN ONE DAY FOLLOWING THAT DISCLOSURE THE ACCURACY OF THE COMPANY'S FINANCIAL REPORTING BECAME THE SUBJECT OF INTERNAL INVESTIGATIONS DELAYING QUARTERLY RESULTS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ITS SHARES CLOSED AT 31625 DOWN 25 CENTS EARNINGS WERE POSTED AFTER THE CLOSE OF TRADING IN DISCUSSING THE LAST SIX MONTHS OF 1993 G LARRY WILSON CHAIRMAN AND CHIEF EXECUTIVE SAID HE WAS DISAPPOINTED WITH THE COMPANY'S RESULTS BUT HE ADDED THAT THE DISTRACTIONS OF THE PAST YEAR ARE MOSTLY BEHIND US AND WE ARE ENCOURAGED BY THE CURRENT TONE OF THE BUSINESS POLICY MANAGEMENT SAID SECONDHALF RESULTS WERE HURT BY LOSSES IN BOTH ITS LIFE AND HEALTHINSURANCE SERVICES BUSINESSES LARGELY BECAUSE OF UNCERTAINTIES REGARDING HEALTHCARE REFORM BUT THE COMPANY SAID THOSE LOSSES WERE OFFSET BY OPERATING PROFIT FROM ITS PROPERTY AND CASUALTY INSURANCE SOFTWARE AND SERVICES BUSINESSES 9404070089 940407 US PROBE INTENSIFIES AFTER 134 REPORTS OF DEFECT IN FORD'S POPULAR TAURUS CARS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL GOVERNMENT STEPPED UP AN INVESTIGATION OF FORD MOTOR CO'S TAURUS AUTOMOBILES CITING 134 REPORTS ABOUT BREAKS IN THE STEEL TIERODS THAT HELP STEER THE CAR'S WHEELS THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION WHICH STARTED LOOKING INTO TIEROD COMPLAINTS IN JUNE SAID IT IS CONDUCTING AN ENGINEERING ANALYSIS TO DETERMINE WHETHER A BROKEN TIEROD MAKES A TAURUS UNCONTROLLABLE OR BREAKS A NEARBY FUEL LINE THE AGENCY SAID IT HAS 12 REPORTS OF ACCIDENTS INVOLVING TIEROD BREAKS INCLUDING ONE CASE IN WHICH A FUEL LINE CAUGHT FIRE FOR FORD A RECALL INVOLVING THE TAURUS COULD BE COSTLY BECAUSE THE MIDPRICED VEHICLE IS THE COUNTRY'S MOST POPULAR CAR IN ADDITION TO THE 19871994 TAURUS THE TIEROD INVESTIGATION EMBRACES MERCURY SABLES AND LINCOLN CONTINENTALS FOR THOSE MODEL YEARSFOR A TOTAL OF 34 MILLION CARS SEPARATELY THE AGENCY SAID IT HAS BEGUN AN INVESTIGATION OF ENGINECOMPARTMENT FIRES IN 19861988 NISSAN MAXIMAS AND 300 ZX CARS THE NHTSA SAID IT HAS RECEIVED 10 COMPLAINTS SINCE DECEMBER NONE OF THEM INVOLVING INJURIES AND THAT 300000 OF THE CARS ARE ON THE ROAD THE INVESTIGATION COULD BE EMBARASSING FOR NISSAN MOTOR CO IN LIGHT OF ITS RECENT DECISION TO BUY BACK 33000 19871990 VANS BECAUSE OF REPORTS OF ENGINE FIRES THE VAN FIRES WERE TRACED TO BROKEN FAN BELTS WHILE THE MAXIMA CASE INVOLVES REPORTS OF FUEL LEAKS FROM RUBBER HOSES IN THE FUELINJECTION SYSTEM NISSAN HAD NO IMMEDIATE COMMENT ON THE LATEST INVESTIGATION NHTSA ALSO HAS BEEN INVESTIGATING FIRES UNDER THE HOODS OF GENERAL MOTORS CORP'S CHEVROLET CAVALIERS AND PONTIAC SUNBIRDS MODEL YEARS 19881991 THE AGENCY SAID YESTERDAY IT HAS PROCEEDED WITH AN ENGINEERING ANALYSIS AFTER RECEIVING FROM CONSUMERS AND GM 171 REPORTS OF FIRES MOST OF THE REPORTS CITE ELECTRICAL SHORTING NEAR THE BATTERY THE AGENCY SAID AN ENGINEERING ANALYSIS MEANS THE AGENCY AFTER PRELIMINARY INVESTIGATION SUSPECTS A SAFETY DEFECT IF THE ANALYSIS CONFIRMS THAT SUSPICION THE NEXT STEP IS TO TRY TO FORCE A RECALL A SPOKESWOMAN FOR FORD SAID THE COMPANY IS COOPERATING WITH THE INVESTIGATION AND HASN'T YET DECIDED IF A RECALL IS NECESSARY THE TIERODS ARE MADE BY TRW INC'S STEERING AND SUSPENSION DIVISION BASED IN STERLING HEIGHTS MICH ACCORDING TO A NHTSA REPORT FORD SAID IT'S RARE FOR A BROKEN TIEROD TO CAUSE A FUELLINE LEAK BECAUSE IT WOULD REQUIRE A SHARP TURN TO PULL THE ROD OUT OF ITS RUBBER BOOT THEN A SHARP TURN IN THE OTHER DIRECTION TO ROTATE THE ROD TOWARD THE FUEL LINE FOUR YEARS AGO NHTSA INVESTIGATED BROKEN TIERODS IN 19851990 FORD TEMPO AND TOPAZ VEHICLES BUT FOUND NO EVIDENCE OF A DEFECT AND SAID DRIVERS WERE ABLE TO KEEP THE CARS UNDER CONTROL AFTER THE TIERODS BROKE IN OTHER ACTION NHTSA SAID IT HAS BEGUN AN ENGINEERING ANALYSIS OF HOOD LATCHES ON THREE FORD LUXURY CARS THE LINCOLN TOWN CAR THE CROWN VICTORIA AND THE GRAND MARQUIS MODEL YEARS 19911994 THE AGENCY HAS REVIEWED 28 COMPLAINTS OF HOODS FLYING UP SUDDENLY IN MANY CASES SMASHING THE CAR'S WINDSHIELD THE ENGINEERING ANALYSIS INVOLVES 778200 CARS 9404070088 940407 TECHNOLOGY & HEALTH HEWLETTPACKARD FOUNDERS GIVE STANFORD 25 MILLION PALO ALTO CALIF WILLIAM HEWLETT AND DAVID PACKARD PLEDGED 25 MILLION TO CREATE SCIENCE FELLOWSHIPS AT STANFORD UNIVERSITY THE LATEST IN A STRING OF GIFTS TO THE SCHOOL FROM THE HIGHTECHNOLOGY PIONEERS THE MONEY WILL FUND RESEARCH BY JUNIOR FACULTY IN ENGINEERING AND THE NATURAL SCIENCES BEGINNING IN THE 199495 SCHOOL YEAR FACULTY MEMBERS WHO RECEIVE THE FELLOWSHIPS WILL RECEIVE AS MUCH AS 100000 A YEAR FOR THEIR RESEARCH THE FELLOWSHIPS WILL BE NAMED AFTER FREDERICK TERMAN A FORMER ENGINEERING DEAN AT STANFORD THAT THE SCHOOL CREDITS WITH A MAJOR ROLE IN THE CREATION OF THE SILICON VALLEY TECHNOLOGY BASE STANFORD ALSO SAID THE GIFT WILL BE USED TO PROVIDE MATCHING FUNDS NEEDED TO OBTAIN FEDERAL RESEARCH GRANTS STANFORD HAS RECEIVED SEVERAL GIFTS FROM MESSRS HEWLETT AND PACKARD THEIR FAMILIES AND FOUNDATIONS THEY SET UP AND HEWLETTPACKARD CO WHICH THE TWO MEN FOUNDED THE PUBLICLY DISCLOSED PORTION OF THESE GIFTS WAS MORE THAN 175 MILLION BEFORE THE LATEST PLEDGE BUT STANFORD OFFICIALS SAY THERE HAVE BEEN OTHER UNDISCLOSED GIFTS FROM THE TWO 9404070087 940407 INTERNATIONAL FORD MAZDA MAY JOIN ON DEVELOPMENT OF PARTS TOKYO FORD MOTOR CO AND MAZDA MOTOR CO ARE DISCUSSING JOINT DEVELOPMENT OF KEY AUTOMOBILE PARTS JAPAN'S NIHON KEIZAI NEWSPAPER REPORTED THE TWO COMPANIES ARE TALKING ABOUT DEVELOPING CHASSIS AND DRIVE TRAINS KNOWN TOGETHER AS PLATFORMS THE REPORT SAID WE ARE DISCUSSING MANY DIFFERENT THINGS WITH FORD AND OF COURSE DEVELOPMENT IS ONE OF THEM SAID A MAZDA SPOKESMAN IN TOKYO WHO DESCRIBED THE NIHON KEIZAI REPORT AS HIGHLY SPECULATIVE A FORD SPOKESMAN IN JAPAN REFERRED CALLS TO FORD'S US HEADQUARTERS ANALYSTS SAID THE REPORT IS THE LATEST SIGN OF FORD'S GROWING INFLUENCE OVER MAZDA FORD OWNS A 25 STAKE IN MAZDA AND ANALYSTS SAY FORD'S DISPATCHING OF SEVERAL HIGHRANKING EXECUTIVES TO THE TROUBLED JAPANESE AUTO MAKER'S HOME BASE IN HIROSHIMA LAST YEAR IS AIMED AT TURNING MAZDA AROUND MAZDA'S PARENT PRETAX PROFIT FELL TO 624 BILLION YEN 596 MILLION FOR THE YEAR ENDED MARCH 31 1993 DOWN FROM 1967 BILLION YEN THE PREVIOUS YEAR MANY ANALYSTS EXPECT MAZDA TO POST A PRETAX LOSS FOR THE YEAR THAT ENDED MARCH 31 9404070086 940407 QUARTERLY MUTUAL FUNDS REVIEW MONEYMARKET YIELDS KEEP IMPROVING BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL MONEYMARKET MUTUAL FUNDS ARE LOOKING BETTER ALL THE TIME WHILE AVERAGE YIELDS WERE STILL A HAIR BELOW 3 AT THE END OF THE FIRST QUARTER THEY HAVE BEEN RISING STEADILY FOR THE FIRST TIME IN NEARLY FIVE YEARS AND THEY COULD RISE AS MUCH AS A FULL PERCENTAGE POINT BY THE END OF THE YEAR PORTFOLIO MANAGERS SAY ASSUMING THE FEDERAL RESERVE CONTINUES TO PUSH UP SHORTTERM INTEREST RATES EVEN CURRENT YIELDS PROBABLY SEEM PRETTY GOOD TO MANY INVESTORS AFTER THE RECENT ROUT IN THE STOCK MARKET MONEY FUNDS ARE STILL THE PLACE TO BE IN A ROCKY MARKET SAYS WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER PORTFOLIO MANAGERS SAY THEY HAVEN'T YET SEEN A DELUGE OF CASH POURING INTO THE FUNDS BUT THEY DO REPORT REGULAR INCREASES IN ASSETS FOR THE FIRST TIME IN MANY MONTHS OVERALL ACCORDING TO MONEY FUND REPORT ASSETS OF TAXABLE FUNDS OPEN TO INDIVIDUAL INVESTORS GREW BY MORE THAN 12 BILLION OR 4 DURING THE FIRST QUARTER TO 3199 BILLION ASSET GROWTH WAS CURTAILED IN THE LAST FEW WEEKS OF THE QUARTER AS INVESTORS WROTE CHECKS TO PAY INCOMETAX BILLS PORTFOLIO MANAGERS SAY BUT THEY ANTICIPATE A PICKUP IN INFLOWS IN COMING MONTHS WE EXPECT MONEY TO COME BACK IN AT ABOUT THE SAME RATE AS IT WENT OUT MAYBE A LITTLE FASTER IT'S ALWAYS A LITTLE FASTER IN BEAR MARKETS SAYS EDWARD WIESE MANAGER OF T ROWE PRICE ASSOCIATES' 35 BILLION PRIME RESERVE FUND TWO YEARS AGO WHEN TAXABLE YIELDS WERE JUST OVER 6 ASSETS OF FUNDS OPEN TO INDIVIDUALS TOPPED 328 BILLION TAXFREE FUNDS ARE GROWING AT A FASTER RATE THAN TAXABLE FUNDS THESE DAYS WHICH PORTFOLIO MANAGERS SAY IS A RESPONSE TO HIGHER TAX RATES IN THE 1993 TAX LAW ASSETS OF TAXEXEMPT FUNDS OPEN TO INDIVIDUALS ROSE BY NEARLY 6 BILLION OR 7 DURING THE QUARTER TO 935 BILLION NEAL LITVACK EXECUTIVE VICE PRESIDENT OF MUTUALFUND GIANT FIDELITY INVESTMENTS SAYS ABOUT HALF THE CASH COMING INTO ITS MONEYMARKET FUNDS IS GOING INTO TAXEXEMPTS TAKING INTO ACCOUNT THE IMPACT OF INCOME TAXES TAXFREE YIELDS WERE HIGHER THAN YIELDS OFFERED BY TAXABLE FUNDS FOR MUCH OF LAST YEAR NOT ANY MORE AT THE END OF THE QUARTER THE AVERAGE SEVENDAY COMPOUND YIELD ON ALL TAXABLE FUNDS INCLUDING FUNDS OPEN TO INSTITUTIONS WAS 298 ON TAXEXEMPT FUNDS IT WAS 178 EQUIVALENT TO A TAXABLE 278 FOR INVESTORS IN THE 36 TAX BRACKET AND TO 295 FOR THOSE IN THE HIGHEST 396 BRACKET COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE AVERAGE YIELD ON TAXABLE FUNDS OPEN TO INDIVIDUAL INVESTORS WAS 267 FOR THE LATEST THREE MONTHS ON AN ANNUALIZED BASIS COMPARED WITH 258 IN LAST YEAR'S FOURTH QUARTER A YEAR AGO THE AVERAGE WAS 266 TO CAPTURE THE RISING INTEREST RATES ON THE SHORTTERM MONEYMARKET INSTRUMENTS IN WHICH MONEY FUNDS INVEST FUND MANAGERS HAVE TIGHTENED THE AVERAGE MATURITY OF THE FUNDS' INVESTMENTS TO 48 DAYS THE SHORTEST SINCE JANUARY 1991 THE AVERAGE MATURITY REACHED A HIGH OF 66 DAYS DURING THE LAST QUARTER OF 1992 AND WAS AS HIGH AS 61 DAYS DURING THIS YEAR'S FIRST QUARTER FUND MANAGERS ALSO ARE LOADING UP ON FLOATINGRATE NOTES WHOSE YIELDS WOULD RISE ALONG WITH SHORTTERM RATES AT THE END OF FEBRUARY THE LATEST MONTH FOR WHICH PORTFOLIO STATISTICS ARE AVAILABLE MONEY FUND REPORT SAID THE AVERAGE HOLDING OF FLOATINGRATE NOTES WAS 658 FOR ALL TAXABLE FUNDS COMPARED WITH JUST OVER 4 A YEAR EARLIER PORTFOLIO MANAGERS SAID THE PERCENTAGE IS RISING AND ACCORDING TO MONEY FUND REPORT SOME FUNDS HAD NEARLY HALF THEIR HOLDINGS IN THESE NOTES AT THE END OF MARCH 9404070085 940407 INTERNATIONAL BRIEF CERUS SA DE BENEDETTI'S FRENCH FIRM SHARPLY NARROWED 1993 LOSS CERUS REDUCED ITS CONSOLIDATED NET DEBT WHICH REFLECTS CASH RESERVES OF ITS HOLDING IN SPANISH FINANCIAL CONCERN COFIR TO 108 MILLION FRANCS AT THE END OF 1993 FROM 145 BILLION FRANCS A YEAR EARLIER CERUS SAID ITS 36 STAKE IN FRENCH AUTOPARTS MAKER VALEO SA CONTRIBUTED 206 MILLION FRANCS TOWARD GROUP PROFIT AFTER GOODWILL AMORTIZATION AND COFIR CONTRIBUTED 26 MILLION FRANCS CERUS SAID LOSSES AT ITS DUMENIL LEBLE BANKING UNIT SHRANK TO 363 MILLION FRANCS IN 1993 COMPARED WITH A LOSS OF 134 BILLION FRANCS IN 1992 9404070084 940407 QUARTERLY MUTUAL FUNDS REVIEW SOME MORTGAGE PLAYS MAY TURN OUT TO BE TIMELY INVESTMENTS BY ABBY SCHULTZ SPECIAL TO THE WALL STREET JOURNAL AFTER TWO DISMAL YEARS AND A DISASTROUS MARCH MORTGAGE FUNDS MAY FINALLY BE GETTING CLOSE TO A GOOD BUY AGAIN BUT PICKING A FUND THAT WILL RISE OUT OF THE ASHES ISN'T EASY MORTGAGE FUNDS COME IN MORE VARIETIES THAN JUST ABOUT ANY TYPE OF BOND FUND BEFORE PUTTING DOLLARS DOWN SMART MUTUALFUND SHOPPERS HAVE TO KNOW WHAT THEY WANT TO GET OUT OF THEIR PURCHASE THE FIRST STEP IS DECIDING WHETHER TO INVEST IN MORTGAGEBACKED SECURITIES AT ALL MORTGAGE SECURITIES ARE BACKED BY THE MONTHLY STREAM OF PRINCIPAL AND INTEREST PAYMENTS HOMEOWNERS MAKE ON THEIR MORTGAGE LOANS A FICKLE FLOW OF FUNDS THAT DISAPPEARS FROM INVESTORS' HANDS WHEN THE UNDERLYING MORTGAGES ARE REFINANCED FOR TAKING ON THIS RISK MORTGAGE INVESTORS USUALLY GET HIGHER RETURNS BUT BEGINNING IN 1992 MORTGAGE INVESTORS ONLY GOT THE RISK THE MOST SUSTAINED REFINANCING BOOM IN HISTORY CAUSED RETURNS ON GENERAL US MORTGAGE FUNDS TO SINK TO 606 FROM 1501 IN 1991 INCLUDING SHARE PRICE AND REINVESTED DIVIDENDS BUT RISING RATES ARE CHOKING OFF THE BOOM IN REFINANCINGS EVEN WHILE MAKING MORTGAGE SECURITIES ATTRACTIVELY PRICED PUTTING MONEY IN A MORTGAGE FUND IS A STRATEGY THAT MAY AT LAST PAY OFF THE SECOND STEP INVOLVES ASKING THE QUESTION HOW LONG DO I WANT MY MONEY IN THIS FUND GOVERNMENT NATIONAL MORTGAGE ASSOCIATION OR GINNIE MAE FUNDS AS WELL AS GENERAL MORTGAGE FUNDS WHICH HAVE THE LATITUDE TO INVEST IN A MORE DIVERSE ARRAY OF MORTGAGE AND TREASURY SECURITIES ARE BEST FOR CONSUMERS WHO WANT THEIR MONEY BACK IN FIVE TO SEVEN YEARS SOME FUNDS HAVE INVESTMENT HORIZONS OF CLOSER TO THREE YEARS HOWEVER SO IT'S BEST TO CHECK THE FUND PROSPECTUS GINNIE MAE IS A FEDERAL AGENCY WHOSE SECURITIES ARE FULLY GUARANTEED BY THE GOVERNMENT FOR BOTH PRINCIPAL AND INTEREST FOR CONSUMERS WHO WANT THEIR MONEY BACK IN A YEAR OR LESS ADJUSTABLERATE MORTGAGE OR ARM FUNDS PROVIDE A HIGHERYIELDING ALTERNATIVE TO MONEY MARKET FUNDS BUT ARM FUNDS CAN BE RISKY WHEN INTEREST RATES RISE RAPIDLY IF ARMS DON'T RAISE THEIR YIELDS QUICKLY ENOUGH TO MATCH RISING INTEREST RATES A FUND'S SHARE PRICE CAN ERODE SAYS STEVEN JANACHOWSKI A PRINCIPAL IN BROUWER & JANACHOWSKI A SAN FRANCISCO INVESTMENTMANAGEMENT FIRM THE SHARE PRICE ERODES BECAUSE THE MORTGAGES HELD BY THE FUND DECLINE IN PRICE BATTERED BY RISING INTEREST RATES WHEN INTEREST RATES ARE RISING CONSUMERS SHOULD ALSO AVOID FUNDS HEAVILY INVESTED IN GINNIE MAE ARMS THESE ADJUSTABLES HAVE A 1 ANNUAL CAP MEANING THEIR RATES CAN ONLY RISE BY 1 A YEAR NO MATTER HOW HIGH SHORT RATES RISE ARMS OFFERED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION OR THE FEDERAL HOME LOAN MORTGAGE CORP WHICH HAVE A 2 CAP ARE A BETTER ALTERNATIVE THOSE TWO AGENCIES KNOWN AS FANNIE MAE AND FREDDIE MAC ARE PRIVATE FEDERALLY CHARTERED AGENCIES AND THEIR SECURITIES CARRY IMPLICIT GOVERNMENT GUARANTEES IF INTEREST RATES STAY IN THEIR CURRENT RANGE OR MOVE STEADILY HIGHER LONGERTERM MORTGAGE FUNDS ARE EXPECTED TO OUTPERFORM MOST GENERAL BOND FUNDS EXCEPT FOR THOSE THAT INVEST IN SHORTTERM HIGH YIELD CORPORATE SECURITIES FUND MANAGERS AND ANALYSTS SAY 9404070083 940407 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN PRIVATE ENTERPRISE REPRESENTS THE FASTESTGROWING PART OF CHINA'S ECONOMY THE CHINESE ACADEMY OF SOCIAL SCIENCES SAID IN WHAT THE PEASANT'S DAILY SAID WAS THE FIRST SURVEY OF THE COUNTRY'S PRIVATE SECTOR THE ACADEMY IN MID1993 FOUND A TOTAL OF 184000 OF THESE BUSINESSES 41 OF THEM SERVICE FIRMS WITH THREE MILLION EMPLOYEES AND REGISTERED CAPITAL OF 52 BILLION UP 225 FROM A YEAR EARLIER PRIVATE FIRMS ARE EXPANDING MOST RAPIDLY IN SOUTHERN CHINA'S BOOMING GUANGDONG PROVINCE IN THE CITIES OF BEIJING AND SHANGHAI THE PROVINCES OF HAINAN ANHUI HEILONGJIANG HUBEI AND JIANGSU AND IN THE FAR WESTERN REGION OF XINJIANG SEPARATELY CHINA ACKNOWLEDGED ITS UNEMPLOYMENT RATE UNDERSTATED BECAUSE RURAL JOBLESS AND UNDEREMPLOYED WORKERS AREN'T COUNTED COULD RISE TO 3 THIS YEAR FROM LAST YEAR'S 26 AS MOVES AWAY FROM THE SOCIALIST WELFARE STATE PUT UNPRECEDENTED STRAINS ON THE ECONOMY FREEMARKET MEASURES HAVE EXPOSED HUGE FAILINGS OF UNPROFITABLE STATE ENTERPRISES STILL THE MAIN JOB SOURCE FOR CHINA'S 12 BILLION PEOPLE THE TUNA EYEBALL LONG SHUNNED AS FOOD IN A COUNTRY OF EXOTIC FISH DISHES HAS GAINED CACHET IN JAPAN FOLLOWING NEWS REPORTS THAT IT NOT ONLY LOWERS BLOOD PRESSURE CLEARS THE SKIN AND STIMULATES THE BRAIN BUT ALSO TASTES DELICIOUS INDUSTRY NUTRITIONISTS TOUT HEALTH BENEFITS OF DOCOSAHEXAEONIC ACID RELATIVELY ABUNDANT IN THE TUNA'S EYE THE RAW PRODUCT SELLING FOR 2 TO 3 AN EYE IS PRICED AT 15 IN CANS AT TONIER STORES THE PREMIUM REFLECTS SCARCITY TOKYO'S WHOLESALE FISH MARKET EACH MONTH GETS ONLY ABOUT 10000 BIGEYED TUNA THOSE WITH THE MOST SUCCULENT ORBS TO COMBAT RAMPANT TAX EVASION AND HELP SHORE UP ITS BUDGET GREECE UNVEILED LEGISLATION THAT CALCULATES NOT ONLY TAXES BUT EARNINGS FOR 1300 CATEGORIES OF SELFEMPLOYED PROFESSIONALS SUCH AS LAWYERS AND BUSINESSES SUCH AS MERCHANTS THE BILL USES A FORMULA THAT INCLUDES BUSINESS LONGEVITY SIZE AND LOCATION AND NUMBER OF EMPLOYEES THE ATHENS BAR ASSOCIATION COMPLAINING THAT LAWYERS DON'T WANT TO BE TAXED UNDER ARBITRARY GOVERNMENTSET FIGURES VOWED TO CONTINUE A TWOWEEK STRIKE UNTIL THE END OF APRIL THE BILL ALSO MAKES FAILURE TO TURN OVER VALUEADDED TAX COLLECTIONS A CRIMINAL OFFENSE PRESIDENT FIDEL RAMOS SAID THE PHILIPPINES THIS SUMMER WON'T HAVE A REPEAT OF LAST YEAR'S ACUTE POWER SHORTAGE THE STATEOWNED UTILITY SAID IT CAN MEET ELECTRICITY DEMAND MR RAMOS DISMISSED CLAIMS THAT THE UNSTEADY POWER SUPPLY REMAINS AN IMPEDIMENT TO FOREIGN INVESTMENT SCHEDULED POWER OUTAGES WHICH LASTED AS LONG AS 12 HOURS DAILY LAST YEAR WON'T EXCEED FIVE HOURS A MONTH THROUGH JUNE AND COULD BE REDUCED TO TWO HOURS IF THE RAINY SEASON BEGINS EARLY HYDROELECTRIC DAMS PROVIDE A THIRD OF THE COUNTRY'S ENERGY SHORTAGES BEGAN IN 1991 AS DEMAND FOR POWER GREW WHILE GENERATING CAPACITY WASN'T EXPANDED FOR TWO YEARS THE AUTO WILL SHIFT FROM THE PRESERVE OF THE WEALTHY AND PRIVILEGED IN CHINA TO A COMMODITY AFFORDABLE TO ORDINARY FAMILIES BY THE YEAR 2010 IF TRENDS OF IMPROVING LIVING STANDARDS AND FALLING PRODUCTION COSTS CONTINUE A GOVERNMENT STATISTICIAN SAID IN THE WORLD'S BIGGEST UNTAPPED AUTO MARKET IMPORTS ARE FLOODING INTO CITIES CHINA OFFICIALLY IMPORTED 310000 CARS LAST YEAR UP 48 FROM A YEAR EARLIER AND HUGE NUMBERS WERE SMUGGLED IN ON JAN 1 PASSENGER CARS TOTALED 12 MILLION 70 OF THEM IMPORTS AND ONLY A HANDFUL PRIVATELY OWNED MEANWHILE BEIJING'S FIRST AUTOIMPORT SHOWROOM OPENED ANDEAN PACT MINISTERS ALLOWED PERU TO REENTER THE TRADE GROUP PERU AGREED TO RETURN AFTER THE GROUP'S FOUR OTHER MEMBERS BOLIVIA COLOMBIA ECUADOR AND VENEZUELA DECIDED TO ELIMINATE DISTORTIONS IN COMMERCE UNDER THE PACT COMMON TARIFFS ARE TO TAKE EFFECT APRIL 30 BUT MAY BE DELAYED BECAUSE OF ECUADOR'S CONCERNS ABOUT EFFECTS ON ITS PRODUCERS THE EUROPEAN UNION DECIDED TO TAKE GREECE TO COURT FOR ALLEGEDLY BREAKING EU LAWS BY IMPOSING A TRADE EMBARGO ON THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA BUT THE EU COMMISSION SAID IT WOULD DELAY ITS DECISION FOR A WEEK TO ALLOW FOR FURTHER NEGOTIATIONS BETWEEN GREECE AND MACEDONIA IT WILL ASK THE EUROPEAN COURT OF JUSTICE TO ORDER GREECE TO SUSPEND THE EMBARGO IT IMPOSED FEB 16 ON ITS LANDLOCKED NEIGHBOR THE EU'S HIGH COURT COULD RULE WITHIN THREE TO FIVE WEEKS BUT A SEPARATE JUDGMENT ON THE EMBARGO'S LEGALITY COULD TAKE TWO YEARS THE COMMISSION REJECTED GREECE'S ARGUMENTS THAT THE TRADE MEASURES ARE JUSTIFIED ON NATIONAL SECURITY GROUNDS THE EU HAS REPEATEDLY WARNED THAT GREECE'S BLOCKADE ON TRADE EXCEPT FOOD AND MEDICINE TO MACEDONIA THROUGH THE PORT OF SALONIKA VIOLATES EU LAWS THAT PREVENT MEMBER STATES FROM UNILATERALLY CLOSING AN EXTERNAL EU BORDER RUSSIA'S 1994 GRAIN HARVEST WHICH THE GOVERNMENT HAD FORECAST AT 95 MILLION TONS COULD BE AS LOW AS 82 MILLION TONS THE INTERFAX NEWS AGENCY SAID THE 1993 HARVEST WAS 109 MILLION TONS DOWN FROM 1175 MILLION TONS IN 1992 THE SECOND MAJOR POWER FAILURE IN LONDON'S SUBWAY SYSTEM IN SIX MONTHS HALTED SERVICE IN THE CENTRAL PART OF THE BRITISH CAPITAL FOR TENS OF THOUSANDS OF RUSHHOUR COMMUTERS 9404070082 940407 MAYNARD OIL PLANS BUYBACK DALLAS MAYNARD OIL CO SAID ITS DIRECTORS AUTHORIZED THE REPURCHASE OF AS MANY AS 100000 SHARES OF ITS COMMON A SPOKESMAN FOR THE OIL AND NATURAL GAS COMPANY SAID IT WOULD BUY BACK SHARES WHEN IT CONSIDERED THEM UNDERVALUED PURCHASES WILL BE MADE IN THE OPEN MARKET OR THROUGH PRIVATELY NEGOTIATED TRANSACTIONS DURING THE NEXT 12 MONTHS AT THE THENPREVAILING MARKET PRICES PURCHASES WILL BE MADE OUT OF THE COMPANY'S OWN CASH RESOURCES AS OF LAST THURSDAY THE COMPANY SAID IT HAD 4891744 SHARES OUTSTANDING 9404070081 940407 DRUG DEALERS EXPORT BILLIONS OF DOLLARS TO EVADE LAWS ON CURRENCY REPORTING BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DRUG SMUGGLERS ARE EVADING US CURRENCYREPORTING LAWS BY SHIPPING BILLIONS OF DOLLARS OUT OF THE COUNTRY ACCORDING TO A REPORT RELEASED BY THE SENATE'S PERMANENT SUBCOMMITTEE ON INVESTIGATIONS ONE OF THE MOST RELIABLE METHODS USED BY THE SMUGGLERS ACCORDING TO THE REPORT IS THE US MAIL OVER 25 CRIMINAL ORGANIZATIONS HAVE BEEN FOUND MAILING CASH THROUGH A SINGLE UNIDENTIFIED EAST COAST AIRPORT US CUSTOMS OFFICIALS HAVE BEEN WRANGLING WITH THE US POSTAL SERVICE FOR ALMOST TWO YEARS ON WAYS TO GET AT THE MONEY BY CHANGING THE LAW SO OUTGOING PACKAGES CAN BE RANDOMLY INSPECTED BUT THE ISSUE REMAINS UNRESOLVED EVEN POSTAL INSPECTORS CAN'T SEARCH MAIL WITHOUT A WARRANT EXPLAINED PAUL M GRIFFO A SPOKESMAN FOR THE US POSTAL INSPECTION SERVICE MAIL IS PROTECTED THE SEAL IS INVIOLABLE IT'S THE SAME AS THE PAPERS OR THE POSSESSIONS IN YOUR HOUSE SMUGGLERS ALSO PACK MILLIONS OF DOLLARS INTO AIR AND SEACARGO CONTAINERS ACCORDING TO THE REPORT MUCH OF THE OUTBOUND FLOW OF GREENBACKS IS NOT STOPPED THE REPORT STATES BECAUSE THE CUSTOMS SERVICE HAS DEVOTED RELATIVELY FEW RESOURCES TO INSPECTING THEM APPARENTLY PRESIDENT TRUMAN'S OLD ADAGE HAS TO BE UPDATED COMMENTED SEN SAM NUNN D GA CHAIRMAN OF THE SUBCOMMITTEE AT LEAST AS IT RELATES TO OUR BORDERS THE BUCK DOESN'T STOP HERE ANYMORE A 1984 REGULATION REQUIRING A FEDERAL TAX REPORT TO BE FILED FOR AMOUNTS OVER 10000 APPEARS TO HAVE CAUSED DRUG DEALERS TO SWITCH THEIR LAUNDERING ACTIVITIES FROM US BANKS TO BANKS IN PANAMA AND COLOMBIA WHERE MUCH OF THE CURRENCY IS SHIPPED AT THE TIME US ENFORCEMENT AGENCIES ESTIMATED AS MUCH AS 15 BILLION IN DRUG MONEY WAS BEING EXPORTED EACH YEAR AND THAT TWO THIRDS OF THE MONEY WAS BEING WIRED OUT THROUGH THE US BANKING SYSTEM APPARENTLY OVERWHELMED WITH BULKY CASH DRUG DEALERS HAVE BEEN CAUGHT SHIPPING 1289700 OVER REMOTE AREAS OF THE CANADIAN BORDER USING ALLTERRAIN VEHICLES BUNDLES CONTAINING 7175161 WERE FOUND IN CONTAINERS OF DRIED PEAS HEADING TOWARD COLOMBIA THE REPORT STATES THAT A RECENT MORE AGGRESSIVE SEARCH EXPERIMENT BY CUSTOMS USING DOGS TRAINED TO SNIFF CASH AND OTHER METHODS MORE THAN DOUBLED THE AMOUNT OF CASH SEIZED DURING A FIVEMONTH PERIOD SO FAR THE AGENCY HAS SEIZED 170 MILLION IN UNREPORTED CURRENCY OVER THE LAST FOUR YEARS AT THE VERY LEAST THE REPORT'S FINDINGS SUGGEST IT IS TIME FOR ALL LAWENFORCEMENT AGENCIES TO WORK TOGETHER TO PLAN AND EXECUTE A COORDINATED LONGRANGE APPROACH TO ADDRESS THE MONEYLAUNDERING PROBLEM CONCLUDED SEN NUNN THE REPORT WAS PREPARED FOR HIS SUBCOMMITTEE BY THE GENERAL ACCOUNTING OFFICE 9404070080 940407 BUSINESS BRIEF PHOENIX LASER SYSTEMS INC LASER EQUIPMENT COMPANY MAY NEED OUTSIDE FINANCING PHOENIX LASER SYSTEMS INC FREMONT CALIF A DEVELOPER OF LASERMEDICAL TREATMENT EQUIPMENT SAID IT BELIEVES IT HAS INSUFFICIENT FUNDS TO MEET ITS CASH NEEDS OVER THE NEXT 12 MONTHS AND THAT IT REQUIRES OUTSIDE FINANCING ITS STOCK CLOSED AT 2125 DOWN 4375 CENTS OR 17 ON THE AMERICAN STOCK EXCHANGE YESTERDAY THE COMPANY SAID IT EXPECTS TO POST A LOSS FOR 1993 OF 171 MILLION OR 180 A SHARE ON SALES OF 18 MILLION IN 1992 THE COMPANY HAD A LOSS OF 378 MILLION OR 499 A SHARE ON SALES OF 31 MILLION 9404070079 940407 WEDNESDAY'S MARKETS STOCKS POST MIXED RESULTS BOND PRICES AND DOLLAR GAIN BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED AS THE MARKET FAILED TO STAGE MUCH OF AN ENCORE AFTER ITS BRILLIANT PERFORMANCE TUESDAY BOND PRICES EDGED HIGHER AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE GAINED 432 POINTS TO 367973 STANDARD & POOR'S 500STOCK INDEX EDGED DOWN 024 TO 44805 AND THE NASDAQ COMPOSITE INDEX SLIPPED 023 TO 75072 THE INDUSTRIAL AVERAGE RALLIED LATE IN THE DAY CLIMBING MORE THAN 20 POINTS BUT WAS UNABLE TO HOLD ITS GAINS IT'S STILL A LITTLE EARLY TO SAY THE CORRECTION HAS RUN ITS COURSE SAID THOMAS MCMANUS A US MARKET STRATEGIST AT MORGAN STANLEY THE MARKET WAS LED AGAIN BY ECONOMICALLY SENSITIVE STOCKS AS HEAVY MACHINERY AUTOMOBILES AND STEEL TURNED IN STRONG PERFORMANCES CASINO STOCKS PLUNGED FOLLOWING DEFEAT OF A MISSOURI CONSTITUTIONAL AMENDMENT TUESDAY TO ALLOW USE OF SLOT MACHINES IN THAT STATE THE ROBUST GAINS FOR CYCLICALS SHOWS THAT INVESTORS ARE CONVINCED THE NEXT PHASE OF THE STOCK MARKET'S ADVANCE WILL BE DRIVEN BY EARNINGS RATHER THAN INTEREST RATES MR MCMANUS SAID TODAY'S TOP PERFORMERS GIVE YOU MORE INDICATION OF THE STOCKS THAT WILL LEAD THE NEXT LEG OF THE BULL MARKET HE ADDED ALFRED GOLDMAN DIRECTOR OF MARKET ANALYSIS AT AG EDWARDS & SONS IN ST LOUIS SAID HE THINKS THE MARKET'S SHARP DECLINES IN RECENT WEEKS ARE OVER AND THAT PRICES WILL ADVANCE FURTHER IN COMING DAYS BUT HE CAUTIONED THAT SOME INVESTORS WILL STILL USE ANY GAINS TO DUMP STOCKS AS HAPPENED NEAR THE CLOSE YESTERDAY THE BOND MARKET CONTINUED TO THROW A SHADOW OVER STOCKS AS BONDS SLUMPED STOCKS FOLLOWED AND AS BOND PRICES IMPROVED IN THE AFTERNOON STOCK PRICES RESPONDED SIMILARLY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 060 TO 11217 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3008 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1268 ISSUES ROSE AND 956 FELL BOND PRICES EDGED HIGHER THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED 1/32 POINT TO YIELD 724 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 17165 MARKS AND 10455 YEN COMPARED WITH 17140 MARKS AND 10435 YEN TUESDAY 9404070078 940407 AMERICAN AIRLINES PLANS TO FURLOUGH MORE PILOTS FORT WORTH TEXAS AMR CORP'S AMERICAN AIRLINES SAID IT WILL FURLOUGH MORE PILOTS THAN PLANNED THE AIRLINE HAD SAID LAST YEAR IT WOULD FURLOUGH UP TO 500 PILOTS BY EARLY 1994 NOW THAT WE SEE FURTHER AHEAD WE'LL NEED MORE THAN 500 SAID A COMPANY SPOKESMAN THE COMPANY WILL LAY OFF 510 AS OF JUNE 1 LEAVING ABOUT 9500 PILOTS AMERICAN SAID IT EXPECTS MORE FURLOUGHS LATER THE SPOKESMAN DIDN'T SAY SPECIFICALLY WHAT STATISTICS OR FIGURES THE AIRLINE RELIED ON WHEN IT DECIDED TO SEEK THE ADDITIONAL CUTBACKS BUT AMERICAN IS STILL PURSUING ITS PLAN TO RETURN TO PROFITABILITY WHICH INCLUDES CONCENTRATING ON AREAS WHERE IT MAKES MONEY CUTTING UNPROFITABLE ROUTES AND SHIFTING RESOURCES TO PROFITABLE NONAIRLINE DIVISIONS AS PART OF THAT PLAN AMERICAN HAS SAID IT IS CUTTING CAPACITY BY ABOUT 7 THIS YEAR AND REDUCING ITS NUMBER OF DAILY FLIGHTS THE SPOKESMAN DECLINED COMMENT ON WHETHER OTHER EMPLOYEES WOULD BE CUT 9404070077 940407 IMF DRAFT BOOSTS ESTIMATE OF US GROWTH FOR 1994 WASHINGTON A DRAFT OF THE INTERNATIONAL MONETARY FUND'S UPDATED WORLD ECONOMIC OUTLOOK PREDICTS THAT THE US ECONOMY WILL GROW 38 THIS YEAR A SHARP UPWARD REVISION FROM LAST SEPTEMBER'S 26 PREDICTION THE DRAFT WHICH IS UNDER DISCUSSION THIS WEEK BY THE IMF'S EXECUTIVE BOARD CUTS 1994 GROWTH FORECASTS FOR JAPAN GERMANY BRITAIN CANADA AND ITALY OFFICIALS SAID THE IMF ARGUES THAT IN LIGHT OF THE STRONGERTHANEXPECTED GROWTH THE US ECONOMY IS OPERATING CLOSER TO ITS CAPACITY AND THAT THE FEDERAL RESERVE SHOULD THEREFORE BE PREPARED TO CONSIDER FURTHER INCREASES IN INTEREST RATES TO PREEMPT A RESURGENCE OF INFLATION THE DRAFT FORECAST SUBJECT TO REVISION BEFORE ITS RELEASE ON APRIL 20 SEES GERMANY'S ECONOMY EXPANDING 08 THIS YEAR A DOWNWARD REVISION FROM A 12 FORECAST LAST SEPTEMBER IT PREDICTS ONLY 07 GROWTH FOR JAPAN WELL BELOW ITS 2 SEPTEMBER FORECAST THE IMF SAYS THAT FURTHER EUROPEAN INTERESTRATE CUTS ALSO MAY BE NECESSARY AND THAT JAPAN WILL REQUIRE ADDED MEASURES TO STIMULATE A MORE ROBUST RECOVERY CANADA'S ECONOMY IS NOW EXPECTED TO EXPAND BY 35 THIS YEAR DOWN FROM A 38 FORECAST IN SEPTEMBER 9404070076 940407 INTERNATIONAL CIE DE SUEZ UNIT PARIS GERARD WORMS CHAIRMAN OF FRANCE'S CIE DE SUEZ SAID HE'S READY TO CONSIDER OFFERS FOR INSURANCE UNIT GROUPE VICTOIRE WHILE HE STRESSED THAT SUEZ WON'T NECESSARILY SELL THE UNIT MR WORMS SAID HE EXPECTS MORE DETAILED OFFERS FROM EUROPEAN INSURERS IN THE NEXT FEW WEEKS WE WILL TAKE THE DECISION THAT IS MOST APPROPRIATE FOR SUEZ AND VICTOIRE MR WORMS TOLD JOURNALISTS AND INDICATED THAT A DECISION WOULD BE MADE BY SUMMER 9404070075 940407 WORLD MARKETS ASIANPACIFIC STOCKS' REBOUNDS MASK CAUTION UPTURN IN SENTIMENT FUELS EUROPEAN BOURSES BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG ASIANPACIFIC STOCK MARKETS REBOUNDED WEDNESDAY FOLLOWING FALLS THAT HAVE PLAGUED MOST OF THEM SINCE EARLY FEBRUARY BUT BROKERS WARNED THAT THE REGION'S JUMPS OWE MORE TO TUESDAY'S SURGE IN US STOCK PRICES THAN TO ANY FUNDAMENTAL CHANGE OF SENTIMENT AMONG INVESTORS ABOUT ASIAN STOCKS MARKETS IN MALAYSIA SINGAPORE AND HONG KONG LED THE REGIONAL BOUNCE HONG KONG'S MAIN INDEX CLIMBED 23 SINGAPORE'S ROSE 26 AND KUALA LUMPUR'S ADVANCED 27 SYDNEY'S BENCHMARK GAUGE ROSE 17 AND TAIWAN'S GAINED 11 IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROCKETED UP 44099 POINTS TUESDAY ROSE 13353 TO 1969674 JUST 60 POINTS ABOVE THE INTRADAY LOW IN TRADING THURSDAY THE NIKKEI FELL 7912 POINTS TO CLOSE THE MORNING SESSION AT 1961762 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES UP FROM 223 MILLION SHARES A DAY EARLIER GAINERS OVERWHELMED LOSERS 743285 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH JUMPED 2845 POINTS TUESDAY ROSE 1158 TO 160041 DESPITE THE RISES BROKERS AROUND THE REGION SAID MANY OF THE MARKETS ENDED CONSIDERABLY BELOW HIGHS REACHED IN MORNING TRADING AND DEALINGS WERE GENERALLY WEAK THAT COMBINATION SUGGESTED THAT INVESTORS REMAINED BASICALLY CAUTIOUS ABOUT ASIAN STOCKS THE RUNUP IS TEMPORARY WE ARE STILL LOOKING AT SOME CHOPPY TRADING IN THE NEXT COUPLE OF MONTHS TOM HESTER AN INSTITUTIONAL STOCKBROKER AT BARING SECURITIES LTD IN SINGAPORE SAID A MARKET PARTICIPANT IN AUSTRALIA SAID THERE'S STILL A LOT OF CAUTIOUSNESS AROUND AN ANALYST IN MALAYSIA PREDICTED THAT GIVEN SUCH LOCAL ANXIETIES BLUECHIP STOCK PRICES THERE WILL EFFECTIVELY TRACK THE ACTIVITY OF US STOCKS IN COMING SESSIONS BUT SOME ANALYSTS BEGAN TO SUGGEST THAT ASIAN STOCK PRICES WERE RETURNING TO FUNDAMENTALLY ATTRACTIVE LEVELS A 17 JUMP IN MANILA EQUITIES OWED AS MUCH TO SIGNS THAT PHILIPPINE INFLATION IS SLOWING AS IT DID TO THE US RALLY SAID PETER MUTUC HEAD OF SALES OF HG ASIA SECURITIES PHILIPPINES INC THESE ARE GOOD INDICATORS AND I WOULD THINK WE'VE SEEN THE BOTTOM ALREADY HE SAID CLIENTS OF SG WARBURG SECURITIES FAR EAST LTD ALSO ARE RECEIVING A REPORT WRITTEN IN LATE MARCH THAT ADVISES SELECTED BUYING OF SHARES IN HONG KONG MALAYSIA AND THAILAND HAS VALUE EMERGED THE REPORT'S COVER POSITS ABOUT ASIAN STOCKS WE THINK SO LONDON SHARES ROSE REFLECTING A PERCEIVED WORLDWIDE UPTURN IN SENTIMENT FRANKFURT STOCKS CLIMBED 15 AS A GERMAN MONETARY EASING SIGNALED THAT COUNTRY'S DETERMINATION TO CONTINUE REDUCING RATES DESPITE THE OPPOSITE TREND IN THE US RECOVERIES ALSO EXTENDED INTO A SECOND DAY ELSEWHERE IN EUROPE PRICES RALLIED 31 IN STOCKHOLM 2 IN AMSTERDAM AND 13 IN PARIS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11217 UP 060 REFLECTING HIGHER MARKETS IN ALL REGIONS CLOTHING AND FABRIC STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10166 UP 208 OR 21 WITH LIZ CLAIBORNE OF THE US POSTING A 73 GAIN IN ITS LOCAL CURRENCY OIL DRILLING STOCKS TRAILED AT 10605 DOWN 179 OR 17 WITH NABORS INDUSTRIES OF THE US SLIDING 38 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 153 POINTS TO 31315 THE FT 30STOCK INDEX GAINED 103 POINTS TO 24729 VOLUME WAS 9442 MILLION SHARES UP SHARPLY FROM 7641 MILLION SHARES A DAY EARLIER THE 100STOCK INDEX RACED UP ABOUT 27 POINTS AT THE OPENING BUOYED BY WALL STREET'S TUESDAY JUMP AND STRONG PERFORMANCES BY ASIAN BOURSES BUT IN LATE TRADING THE BENCHMARK INDEX SLIPPED IN SYMPATHY WITH EARLY LOSSES IN NEW YORK THE US AND BRITISH EQUITY MARKETS' RECENT DOWNTURNS HAVE BEEN BLAMED LARGELY ON BONDMARKET STRUGGLES WITH US TIGHTENING OF MONETARY POLICY IN A BID TO CHOKE OFF ANY INCREASE IN INFLATION IN FRANKFURT THE DAX 30STOCK INDEX JUMPED 3291 POINTS TO 219120 DESPITE THE RELATIVELY LIGHT DEALINGS THE MOOD WAS CONFIDENT REINFORCED BY WALL STREET'S RALLY ON TUESDAY THE GERMAN BUNDESBANK THE CENTRAL BANK SAID WEDNESDAY MORNING IT WOULD ACCEPT BIDS FOR SECURITIES REPURCHASE AGREEMENTS AT RATES OF 573 A DROP FROM 576 LAST WEEK IN LINE WITH EXPECTATIONS THE REPO RATE EASING INDICATED THE BUNDESBANK WAS HOLDING TO ITS POLICY OF GRADUAL EASING OF INTEREST RATES AND IGNITED MARKET HOPES FOR A CUT IN A BENCHMARK RATE SOON IN PARIS THE MARKET ALSO REBOUNDED FOR A SECOND DAY AS PRICES JUMPED 13 WITH BUYING FOCUSED ON OIL AND FINANCIAL STOCKS SENTIMENT WAS HELPED BY NEW YORK SHARES' SHARP CLIMB A DAY EARLIER IN AMSTERDAM STOCKS BIG ADVANCE WAS SPURRED BY A STRONGER DOLLAR IN CURRENCY DEALINGS AND HIGHER PRICES ON OTHER EUROPEAN AND US STOCK MARKETS AS WELL AS THE GERMAN RATE EASING AND OPTIMISM ABOUT FURTHER EUROPEAN RATE CUTS IN MILAN SHARES CLOSED HIGHER AFTER INVESTORS SHOOK OFF A LOWER OPENING ON FEARS AN ITALIAN COALITION MIGHT NOT FORM A NEW GOVERNMENT FOLLOWING THE RECENT ELECTIONS IN MADRID PRICES CONTINUED RISING PUSHED UP BY THE REBOUNDS IN THE US DOLLAR AND WALL STREET IN STOCKHOLM THE MARKET'S 31 JUMP FOLLOWED A 13 ADVANCE TUESDAY THAT BROKE A 12SESSION LOSING STRING THE BROAD GAINS WERE SPURRED BY STRONG PERFORMANCES IN MARKETS ABROAD DECLINING BOND YIELDS AND BARGAINHUNTING ISSUES SENSITIVE TO INTEREST RATES BENEFITED THE MOST WITH BANKING AND INSURANCE STOCKS UP 46 AND REAL ESTATE AND CONSTRUCTION FIRMS UP 44 IN ZURICH STOCKS POSTED STRONG GAINS ON INCREASED TURNOVER WITH STRONG BOND AND IMPROVED STOCK MARKETS IN EUROPE AND THE RALLY ON WALL STREET THE DAY BEFORE PROMPTING HEAVY BUYING OF BLUE CHIPS THOUGH LIGHT PROFITTAKING LATE IN THE SESSION TRIMMED EARLIER RISES IN MEXICO CITY AFTER AN EARLY DROP BECAUSE OF A BOOST IN A MEXICAN INTEREST RATE STOCKS ROSE 12 AS BARGAINHUNTERS PROSPECTED FOLLOWING THREE SESSIONS OF SHARP DECLINES AMONG CORPORATE DEVELOPMENTS IN FRANKFURT DRESDNER BANK JUMPED 930 MARKS OR 23 TO 41350 MARKS 23533 THE BANK GERMANY'S SECOND LARGEST IS CONSIDERING A PRIVATE PLACEMENT OF AMERICAN DEPOSITARY RECEIPTS IN THE US TO RAISE ABOUT 13 BILLION MARKS 7569 MILLION A GERMAN NEWS REPORT SAID DRESDNER SAID ITS SUPERVISORY BOARD WAS TO DISCUSS MEASURES TO RAISE CAPITAL AND WOULD UNVEIL DETAILS TOMORROW WHEN 1993 RESULTS ARE TO BE REPORTED 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 9404070074 940407 INTERNATIONAL MEXICO IS REPORTED TO CAPTURE SIXTH SUSPECT IN COLOSIO SLAYING BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY MEXICAN AUTHORITIES HAVE CAPTURED THE SIXTH OF THE SEVEN CURRENT SUSPECTS IN THE ASSASSINATION OF RULINGPARTY PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO MEXICAN NEWSPAPER EL UNIVERSAL REPORTED A SPOKESWOMAN IN THE PRESIDENT'S OFFICE SAID SHE COULDN'T CONFIRM THE REPORT BECAUSE SHE WAS AWAITING WORD FROM THE SPECIAL INVESTIGATOR BUT SHE SAID SHE BELIEVED THE REPORT WAS ACCURATE THE SUSPECT WHO JOINS THE FIVE ALREADY IN CUSTODY IS REPORTEDLY SALVADOR HERNANDEZ TOMASINI HE ALLEGEDLY WAS FOUND ON VIDEOTAPE TO THE LEFT OF THE CANDIDATE HELPING BLOCK MR COLOSIO'S PROGRESS SO THE ASSASSIN COULD GET NEXT TO HIM MR HERNANDEZ THEN REPORTEDLY DUCKED JUST BEFORE THE SHOTS WERE FIRED AS MORE OF THE VIDEOTAPE OF THE ASSASSINATION IN TIJUANA BEGAN TO APPEAR ON MEXICAN TELEVISION IT BECAME CLEARER JUST HOW CAREFULLY PLANNED AND PROFESSIONAL THE KILLING WAS THE CONFESSED ASSASSIN MARIO ABURTO MARTINEZ CAN BE SEEN TALKING TO TWO OF THE OTHER SUSPECTS THEN THE SUSPECTS CAN BE SEEN SURROUNDING MR COLOSIO DISTRACTING HIS FEW SECURITY PEOPLE AND SLOWING HIM TO THE POINT WHERE MR ABURTO COULD WITH SOME HELP FIGHT HIS WAY THROUGH THE CROWD AND PLACE HIS 38CALIBER REVOLVER ALMOST UP AGAINST MR COLOSIO'S HEAD ONE OF THE OPPOSITIONPARTY PRESIDENTIAL CANDIDATES DIEGO FERNANDEZ DE CEVALLOS WAS QUOTED IN EL UNIVERSAL AS SAYING IN AN INTERVIEW THAT OFFICIALS OF THE RULING PARTY IN TIJUANA MUST HAVE BEEN BEHIND THE ASSASSINATION AND THAT THEORY HAS BEEN GAINING SOME CREDENCE HERE THE THEORY IS THAT SOME LOCAL OFFICIALS BOTH IN TIJUANA AND THE SURROUNDING STATE OF BAJA CALIFORNIA HATED MR COLOSIO AS PRESIDENT OF MEXICO'S RULING INSTITUTIONAL REVOLUTIONARY PARTY OR PRI HE WAS THE OFFICIAL WHO SO THE THEORY GOES INSISTED TO PARTY OFFICIALS IN 1991 THAT THEY NEEDED TO ACKNOWLEDGE THAT THE PRI HAD ACTUALLY LOST AN ELECTION FOR THE BAJA GOVERNORSHIP THE PRI HAD INITIALLY CLAIMED VICTORY THUS THE DECISION TO ADMIT VOTING FRAUD AND TURN THE VICTORY OVER TO THE OPPOSITION MEANT A FIRSTEVER LOSS OF A GOVERNORSHIP BY THE PRI AND A CHINK IN THE PARTY'S SIXDECADES OF ELECTORAL DOMINANCE THE PROBLEM WITH THIS THEORY IS THAT IT WAS APPARENTLY PRESIDENT CARLOS SALINAS DE GORTARI HIMSELF WHO DECIDED TO ACKNOWLEGE THE LOSS MR COLOSIO ONLY RELAYED THE DECISION ACCORDING TO REPORTS AT THE TIME SO IT'S NOT CLEAR WHY MR COLOSIO WOULD BE KILLED IN RETRIBUTION ANOTHER THEORY GAINING GROUND IS THAT DRUG LORDS HAD MR COLOSIO KILLED BECAUSE OF REFORMS THAT HAVE BEEN PRYING OPEN MEXICO'S ELECTION PROCESS DRUG LORDS OPERATING OUT OF TIJUANA MAY HAVE BEEN LOSING SOME OF THE INFLUENCE THEY HAVE BOUGHT IN GOVERNMENTS AND POLICE FORCES THROUGHOUT THE STATE MR COLOSIO HAD BEEN ADVOCATING MUCH FASTER REFORM SO KILLING HIM WOULD REMOVE HIM AS A FACTOR AN ASSASSINATION MIGHT ALSO SHOCK THE COUNTRY INTO SLOWING THE PACE OF CHANGE THE THEORY GOES TIJUANA WOULD BE THE PERFECT PLACE FOR A HIT BECAUSE THE DRUG LORDS HAVE SUCH BROAD INFLUENCE THERE THOSE BACKING THIS THEORY ARE STARTING TO TIE IN THE COLOSIO ASSASSINATION WITH OTHER DRUGRELATED VIOLENCE SUCH AS THE MURDER A YEAR AGO OF A CARDINAL THOUGH THE KILLING OCCURRED IN GUADALAJARA IT HAS BEEN BLAMED ON DRUG GANGS INCLUDING ONE OF THE MOST NOTORIOUS IN TIJUANA MORE RECENTLY THERE WAS A SHOOTOUT IN BAJA CALIFORNIA BETWEEN FEDERAL AND STATE POLICE THAT APPARENTLY STARTED BECAUSE THE FEDERAL POLICE WERE TRYING TO ARREST SOME DRUG FIGURES AND FOUND THAT STATE POLICE WERE ACTING AS THEIR BODYGUARDS 9404070073 940407 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION MERIX CORP AN INITIAL OFFERING OF 33 MILLION COMMON SHARES AT AN EXPECTED 1050 TO 1250 A SHARE VIA COWEN & CO AND MONTGOMERY SECURITIES MITYLITE INC AN INITIAL OFFERING OF 900000 COMMON SHARES AT AN ANTICIPATED 5 TO 550 A SHARE VIA PACIFIC CREST SECURITIES INC AND DA DAVIDSON & CO QUAD SYSTEMS CORP AN OFFERING OF 783333 COMMON SHARES VIA UNTERBERG HARRIS 9404070072 940407 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG NEARLY EVERYONE WITH A COMPUTER BY NOW HAS HEARD OF THE INTERNET A SPRAWLING SYSTEM OF CONNECTED COMPUTER NETWORKS PACKED WITH INFORMATION ELECTRONIC CONVERSATION AND NEWS POLITICIANS WRITERS AND BUSINESS LEADERS REGULARLY HAIL THE THING AS A PROTOTYPE FOR THE MUCHTOUTED INFORMATION HIGHWAY WHICH IS SUPPOSED TO WIRE US ALL UP TO EACH OTHER SO WE CAN WATCH VIDEOS LEARN TRIGONOMETRY AND BUY FAKE DIAMONDS ANYWHERE ANYTIME NOTE TO READERS AS THIS COLUMN HAS JUST USED THE MAGIC WORDS INFORMATION HIGHWAY THE CURRENT JOURNALISTIC PRACTICE ALLOWS ME RIGHT ABOUT HERE TO INSERT A BAD PUN OR DOPEY METAPHOR COMPARING THE INTERNET TO A REAL INTERSTATE ROADWAY HOWEVER AS A PUBLIC SERVICE I AM REFRAINING FROM DOING SO THERE ARE JUST THREE TEENSY PROBLEMS WITH THE INTERNET THAT ITS BOOSTERS OVERLOOK FIRST UNLESS YOU'RE INSIDE A UNIVERSITY GOVERNMENT AGENCY OR BIG COMPANY IT CAN BE VERY DIFFICULT AND EXPENSIVE TO FIND A COMPANY THAT SELLS ACCESS TO MANY OF ITS FEATURES BEYOND ELECTRONICMAIL TRANSFERS SECOND THE INTERNET MOSTLY RELIES ON COMPLICATED OLDFASHIONED SOFTWARE THAT REQUIRES MEMORIZING LOTS OF ARCANE COMMANDS FINALLY THE INTERNET CAN BE CONFUSING BECAUSE IT HAS NO ORGANIZING STRUCTURE THOSE BARRIERS ARE BEGINNING TO FALL HOWEVER AS BIG NATIONAL ONLINE COMPUTER SERVICES COMPETE TO ATTRACT CUSTOMERS BY CREATING EASYTOUSE SOFTWARE SYSTEMS OR INTERFACES FOR CONNECTING TO AND CRUISING THE INTERNET MOST ONLINE SERVICES PERMIT USERS TO SEND EMAIL TO PEOPLE ON OTHER COMMERCIAL SERVICES OR NETWORKS USING THE INTERNET AS A TRANSFER MECHANISM THE COMPETITION IS AIMED AT OPENING UP MANY MORE INTERNET FUNCTIONS TO MEMBERS FIRST TO CROSS THE FINISH LINE IN THIS RACE IS AMERICA ONLINE AOL IT HAS ROLLED OUT A FEATURE CALLED INTERNET CENTER THAT USES THE FAMILIAR AOL SYSTEM OF ICONS AND MENUS CONTROLLED BY CLICKING A COMPUTER MOUSE TO NAVIGATE THROUGH THE INTERNET SO FAR AMERICA ONLINE'S INTERNET CENTER HAS THREE PARTS COVERING THREE INTERNET SERVICES BEYOND EMAIL ONE ALLOWS USERS TO TAP INTO THOUSANDS OF INTERNET BULLETIN BOARDS CALLED NEWS GROUPS ON TOPICS FROM POLITICS TO MUSIC TO SEX TRAVEL AND ART A SECOND LETS MEMBERS SUBSCRIBE TO MAILING LISTS IN WHICH INFORMATION AND COMMENTARY ON SELECTED TOPICS PUBLISHED BY AFICIONADOS WORLDWIDE IS AUTOMATICALLY FORWARDED TO THEIR EMAIL BOX ON AOL FINALLY AMERICA ONLINE IS IN THE PROCESS OF ADDING A THIRD SERVICE POINTANDCLICK ACCESS TO MANY DATABASES AT UNIVERSITIES AND ELSEWHERE THAT ARE BASED ON TWO POPULAR COMPUTER SYSTEMS CALLED GOPHER AND WAIS AOL ALSO ORGANIZES THE INTERNET MATERIAL LETTING YOU PICK WHAT YOU LIKE FROM LISTS OR SEARCH FOR TOPICS BEST OF ALL THESE INTERNET SERVICES ARE INCLUDED IN AOL'S STANDARD PRICE OF 995 A MONTH FOR FIVE HOURS AND 350 AN HOUR FOR TIME ONLINE PAST FIVE HOURS NO SPECIAL PHONE NUMBERS OR SOFTWARE ARE NEEDED YOU JUST DIAL INTO AOL USING THE USUAL NUMBER AND THE SAME SOFTWARE AND TYPE THE KEY WORDS INTERNET CENTER THIS GOOD NEWS FOR INTERNET NOVICES IS TEMPERED A BIT BY THE FACT THAT AMERICA ONLINE HAS GROWN SO FAST THAT IT CAN BE DIFFICULT TO DIAL INTO IT WHILE THE CAPACITY PROBLEM HAS EASED GREATLY SINCE THE COMPANY WAS FORCED TO TURN AWAY CALLERS THIS PAST WINTER I STILL FIND IT HARDER TO DIAL INTO AOL THAN OTHER SERVICES AND RUN INTO MORE DELAYS ONLINE ESPECIALLY AT NIGHT THE SERVICE IS ALSO DOWN FOR ROUTINE MAINTENANCE THREE MORNINGS A WEEK FROM 6 TO 830 THE OTHER BIG SERVICES COMPUSERVE AND PRODIGY ARE PROMISING SIMILAR EASYTOUSE INTERNET ACCESS AROUND MIDYEAR BUT AT FIRST THEY ARE LIKELY TO COVER ONLY NEWS GROUPS AND MIGHT BE PRICED AT A PREMIUM ABOVE THE SERVICES' MONTHLY FLAT RATE DELPHI A SMALLER NATIONAL SERVICE ALREADY OFFERS COMPLETE INTERNET ACCESS BUT DELPHI'S INTERNET GATEWAY USES A CONFUSING OLDSTYLE COMMAND SYSTEM AND IT CHARGES A SMALL MONTHLY SURCHARGE FOR INTERNET USE THE COMPANY PROMISES AN EASY INTERNET INTERFACE BY THE END OF THE YEAR EVEN SMALLER OUTFITS ARE JUMPING INTO THE RACE THOUGH MOST ARE LOCAL FIRMS THAT LACK AOL'S REACH ONE OF THEM COMPUTER WITCHCRAFT OF LOUISVILLE KY OFFERS AN EASYTOUSE WINDOWS INTERFACE CALLED WINNET MAIL BUT IT ONLY COVERS EMAIL AND NEWS GROUPS AND USERS OUTSIDE LOUISVILLE INCUR LONGDISTANCE CHARGES IN ADDITION TO THE BASIC 8ANHOUR FEE OR SURCHARGES IF THEY USE THE COMPANY'S 800 NUMBER A LITTLE NEW YORK CITY COMPANY CALLED PIPELINE OFFERS A PARTICULARLY SLICK INTERNET INTERFACE THAT LETS USERS ACCESS NEWS GROUPS SEARCH DATABASES AND TAP INTO A WIDE RANGE OF INTERNET FEATURES AND FUNCTIONS BY JUST CLICKING ON ICONS OR MENU ITEMS WITH THE MOUSE THE PIPELINE BREAKS DOWN INTERNET CHOICES INTO SUBJECT AREAS AND EVEN LETS USERS DO MULTIPLE THINGS AT ONCE LIKE READING EMAIL WHILE DOWNLOADING A FILE NONNEW YORKERS MUST CALL LONGDISTANCE BUT THE COMPANY SAYS THAT IN A MATTER OF WEEKS PEOPLE OUTSIDE THE CITY WILL BE ABLE TO DIAL INTO THE PIPELINE THROUGH LOCAL PHONE NUMBERS IN MANY BIG CITIES THESE OUTLANDERS WILL PAY A SURCHARGE OF UP TO 5 AN HOUR OVER THE BASIC RATE WHICH IS 20 A MONTH FOR 20 HOURS PLUS 90 FOR THE PROPRIETARY SOFTWARE WHICH IS WAIVED IF YOU SUBSCRIBE FOR THREE MONTHS EACH OF THESE COMPANIES HOPES TO BECOME THE HOME BASE FOR TENS OF MILLIONS OF COMPUTER USERS THE PLACE FROM WHICH THEY COMMUNICATE ELECTRONICALLY WITH PEOPLE AND DATABASES WORLDWIDE VIA THE INTERNET WHOEVER MAKES IT EASY AND CHEAP TO DO THAT WILL COME OUT ON TOP 9404070071 940407 QUARTERLY MUTUAL FUNDS REVIEW CLOSEDEND DISCOUNTS WIDEN SHARE PRICES OF CLOSEDEND STOCK FUNDS FELL RELATIVE TO THEIR UNDERLYING PORTFOLIOS IN THE FIRST THREE MONTHS OF 1994 ON MARCH 31 THE AVERAGE CLOSEDEND STOCK FUND SOLD AT A 63 DISCOUNT TO ITS NET ASSET VALUE ACCORDING TO LIPPER ANALYTICAL SERVICES THAT DISCOUNT WIDENED FROM 41 ON DEC 31 1993 CLOSEDEND FUNDS DIFFER FROM MUTUAL FUNDS IN THAT THEIR SHARES ARE PUBLICLY TRADED LIKE MUTUAL FUNDS THEY ARE AN INVESTMENT VEHICLE ALLOWING SMALL INVESTORS TO POOL THEIR FUNDS AND HIRE A MANAGER TO RUN A PORTFOLIO OF SECURITIES BUT SUPPLY AND DEMAND SET THE PRICE OF THE SHARES WHICH CAN PUSH THEM ABOVE OR BELOW THE NET ASSET VALUE OF THE FUND'S ACTUAL PORTFOLIO SHARES TRADING ABOVE THE NET ASSET VALUE ARE SAID TO BE AT A PREMIUM WHILE SHARES SELLING BELOW NET ASSET VALUE ARE AT A DISCOUNT FOREIGN CLOSEDEND FUNDS WERE ALSO HIT IN THE QUARTER AS THEIR SHARES FELL TO A DISCOUNT OF 41 FROM A PREMIUM OF 96 ON DEC 31 THE DIVE IN EMERGING MARKETS ACCOUNTED FOR MUCH OF THE REVERSAL IN SHARE PRICES SHARES OF TAXABLEBOND CLOSEDEND FUNDS HAD A DISCOUNT OF 23 ON AVERAGE ON MARCH 31 COMPARED WITH A DISCOUNT OF 11 AT THE END OF 1993 BUT AT HARDHIT MUNICIPALBOND FUNDS THE PORTFOLIOS FELL FASTER THAN THE STOCK PRICES MUNIFUND DISCOUNTS NARROWED TO 25 FROM 33 9404070070 940407 MEAN STREET BOND MARKET'S ROUT THE WORST SINCE 1987 STUNS MANY INVESTORS EVEN BIG SAVVY PLAYERS GET A POUNDING AS LEVERAGE PROVES TO BE DANGEROUS BUT MANY HOLD ON AND WAIT BY WALL STREET JOURNAL STAFF REPORTERS RANDALL SMITH TOM HERMAN AND EARL C GOTTSCHALK JR WHAT DO YOU HAVE IN COMMON WITH MICHAEL STEINHARDT GOLDMAN SACHS AND BANKERS TRUST IF YOU BOUGHT A BOND OR BOND MUTUAL FUND LAST YEAR YOU MAY WELL BE IN A HEAP OF HURT THE BOND MARKET HAS SUFFERED ITS WORST PLUNGE IN MORE THAN SIX YEARS AND HAS HANDED STUNNING LOSSES TO LEGIONS OF STARTLED INVESTORS RANGING FROM BIG PLAYERS ON WALL STREET TO THOUSANDS OF LESSSOPHISTICATED SMALL SAVERS ALL HAD GROWN ACCUSTOMED TO SEEING BOND PRICES MOVE ONLY ONE WAY UP THIS IS FOR BONDS WHAT 1987 WAS FOR STOCKS SAYS PETER J CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES CORP IN NEW YORK BETWEEN JAN 28 AND APRIL 4 PRICES OF 30YEAR US TREASURY BONDS FELL 14 THE BIGGEST DOWNTURN SINCE 1987 THAT IS THE STEEPEST TWOMONTH DECLINE SINCE 1980 SAYS MARTIN LEIBOWITZ RESEARCH DIRECTOR AT SALOMON BROTHERS INC LIKE THE 1987 STOCKMARKET CRASH THE ROUT IN BOND PRICES FOLLOWED SEVERAL YEARS OF FALLING INTEREST RATES AND HEALTHY BOND RETURNS IN THE THREE YEARS ENDED SEPTEMBER 1993 THE VANGUARD TOTAL BOND MARKET INDEX FUND DELIVERED RETURNS COUNTING DIVIDENDS AND PRICE CHANGES OF 126 ANNUALLY BUT IT HAS BEEN ALL DOWNHILL SINCE US ECONOMIC GROWTH SURGED IN THE 1993 FOURTH QUARTER AND PROMPTED THE FEDERAL RESERVE TO BEGIN RAISING SHORTTERM INTEREST RATES FEB 4 TO HEAD OFF INFLATION THAT HELPED PROPEL INTEREST RATES ON 30YEAR TREASURY BONDS TO 741 ON MONDAY FROM A LOW OF 579 LAST OCTOBER RISING RATES DRAG DOWN BOND PRICES BECAUSE THE INTEREST PAYMENTS ON BONDS ARE FIXED THE BOND MARKET BOUNCED BACK ON TUESDAY AND WAS LITTLE CHANGED YESTERDAY LEAVING THE RATE ON 30YEAR TREASURY BONDS AT 724 ALMOST ALL MY PROFITS FROM LAST YEAR HAVE BEEN LOST OVER THE PAST TWO MONTHS MOANS LARRY KATZENSTEIN AN EDITOR OF AMERICAN HEALTH MAGAZINE IN NEW YORK AN INVESTOR WHOSE FIDELITY SPARTAN MUNICIPALBOND FUND IS DOWN 12 SINCE JANUARY THE MAGNITUDE OF THE STAMPEDE OUT OF BONDS AND BOND FUNDS IS EVIDENT IN THE 7 BILLION THAT FLOWED INTO MUCH LESS VOLATILE MONEYMARKET FUNDS LAST WEEK USUALLY MONEY FLOWS OUT OF SUCH FUNDS IN EARLY APRIL AS INVESTORS PAY THEIR INCOME TAXES SOME OF THE HOTTEST AREAS OF THE BOND MARKET HAVE BEEN HIT THE HARDEST BONDS OF DEVELOPING NATIONS KNOWN ON WALL STREET AS EMERGING MARKETS HAVE BEEN PUMMELED FIDELITY NEW MARKETS INCOME FUND WHICH HOLDS SUCH BONDS POSTED A NEGATIVE 207 RETURN IN THE FIRST QUARTER TO BE SURE PLENTY OF LONGTERM BOND INVESTORS AREN'T MUCH CONCERNED ABOUT THE MARKET'S ROUT SOME OWN INDIVIDUAL BONDS AND PLAN TO HOLD THEM TO MATURITY THUS AVOIDING ANY LOSS OF CAPITAL OR THEY HOLD BOND MUTUAL FUNDS AS PART OF THEIR LONGRANGE RETIREMENT SAVINGS OR THEY HAVE OWNED BONDS LONG ENOUGH TO HAVE REAPED ABOVEAVERAGE RETURNS IN THE 1980S AND EARLY 1990S IN ADDITION MOST BOND FUNDS HAVEN'T BEEN HIT AS HARD AS THE 30YEAR TREASURY ISSUE BECAUSE THE FUNDS ALSO HOLD BONDS OF SHORTER MATURITIES WHOSE PRICES HAVEN'T FALLEN AS FAR BETWEEN OCT 15 AND APRIL 4 THE FIVELARGEST BOND FUNDS SHOW NEGATIVE RETURNS RANGING FROM 4 TO 66 ACCORDING TO MUTUALFUND TRACKER MORNINGSTAR INC THE BIGGEST LOSERS IN CONTRAST MAY BE THE SAVVY PLAYERS SUPPOSED TO BE SMART ENOUGH TO SIDESTEP MARKET DEBACLES HEDGEFUND OPERATORS SUCH AS MR STEINHARDT AND JULIAN ROBERTSON ARE REELING UNDER LOSSES AND BIG NEW YORK TRADING FIRMS SUCH AS GOLDMAN SACHS & CO AND BANKERS TRUST NEW YORK CORP ARE BRUISED HEDGE FUNDS ARE PRIVATE INVESTMENT PARTNERSHIPS THAT ARE LIMITED UNDER SECURITIES LAW TO 99 SOPHISTICATED US INVESTORS BUT ARE UNLIMITED FOR FOREIGN INVESTORS SUCH FUNDS BORROW HEAVILY IN AN ATTEMPT TO MAGNIFY THEIR RETURNS THE INVESTORS INCLUDE NOT ONLY WEALTHY INDIVIDUALS BUT ALSO INSTITUTIONS SUCH AS THE ENDOWMENT FUND OF CASE WESTERN RESERVE UNIVERSITY WHICH HAD PLACED 5 MILLION WITH MR ROBERTSON MESSRS STEINHARDT AND ROBERTSON ARE AMONG THE BIGGEST OF A PARADE OF HEDGEFUND OPERATORS WHO RACKED UP 1993 RETURNS OF MORE THAN 50 BY USING BIG POOLS OF CAPITAL TO BUY US AND FOREIGN BONDS WITH HUGE LEVERAGE SINCE 1989 CUSTOMERS OF US GOVERNMENT BOND DEALERS HAVE PILED UP 180 BILLION IN LOANS SECURED BY TREASURY BONDS BUT WHEN BOND PRICES TURNED DOWN THIS YEAR MANY HEDGE FUNDS WERE FORCED TO SELL BONDS TO RAISE CASH TO COVER THE REDUCED VALUE OF THE COLLATERAL FOR THEIR LOANS SUCH A SQUEEZE WORSENS THE MARKET'S DECLINE IN THE FIRST QUARTER MR STEINHARDT AND HIS CLIENTS WHO HAD INVESTED 5 BILLION LOST MORE THAN 1 BILLION THE BULK OF IT IN BONDS AND MR ROBERTSON AND HIS CLIENTS WHO HAD INVESTED 7 BILLION LOST ABOUT 875 MILLION ALSO PRIMARILY IN BONDS AND THE BONDMARKET DROP WIPED OUT ALL 600 MILLION INVESTED WITH DAVID ASKIN A HEDGEFUND MANAGER WHO HAD BOUGHT MORTGAGEBACKED SECURITIES WHICH ALSO HAVE BEEN TRAMPLED LONGTIME HEDGEFUND INVESTORS TRY TO BE PHILOSOPHICAL ABOUT THE SETBACKS OF COURSE YOU'RE CONCERNED SAYS RICHARD GRAND A PHOENIX LAWYER WHO HAS BEEN INVESTING IN HEDGE FUNDS FOR FIVE YEARS BUT YOU MADE A HELL OF A LOT LAST YEAR YOU'RE GIVING SOME OF IT BACK FALLING PRICES HAVE ALSO SLASHED THE VALUE OF THE RECORD BOND INVENTORIES HELD BY WALL STREET SECURITIES DEALERS AND HAVE TAKEN SMALLER NICKS OUT OF THE VALUE OF SHORTERTERM BONDS ON THE BOOKS OF BANKS AND INSURANCE COMPANIES ALAN ZIMMERMANN AN ANALYST AT PRUDENTIAL SECURITIES ESTIMATES THAT THE PORTFOLIOS OF PROPERTY AND CASUALTY INSURERS HAVE DROPPED ABOUT 4 FROM YEAR END ASSUMING A HEAVY MIXTURE OF BADLY HIT MUNICIPAL BONDS ALONG WITH CORPORATE AND GOVERNMENT SECURITIES GIVEN THE 400 BILLION IN BONDS HELD BY THE INSURERS THAT WOULD INDICATE A 16 BILLION LOSS RIVALING THE INSURERS' 165 BILLION BATTERING BY HURRICANE ANDREW I'M STARTING TO CALL THIS HURRICANE GREENSPAN MR ZIMMERMAN SAYS REFERRING TO THE FEDERAL RESERVE CHAIRMAN WHOSE DECISION TO RAISE SHORTTERM INTEREST RATES SET OFF THE BOND MARKET'S DECLINE THE NATION'S SECURITIES FIRMS ARE VULNERABLE TO BONDMARKET TRAUMA BECAUSE LIKE COMMERCIAL BANKS THEY FINANCE THEIR DEALINGS BY BORROWING HEAVILY AGAINST THEIR EQUITY CAPITAL TODAY WALL STREET FIRMS ARE MORE HIGHLY LEVERAGED THAN EVER HOLDING MORE THAN 27 OF ASSETS BONDS AND OTHER SECURITIES FOR EVERY 1 OF EQUITY SAYS THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP THE FIRMS HAVE BEEN MAKING MONEY ON THE SPREAD BETWEEN THE INTEREST COSTS ON THEIR SHORTTERM BORROWINGS AND THE INCOME ON THEIR LONGERTERM DEBT HOLDINGS BUT AS SHORTTERM RATES RISE THEIR BORROWING COSTS INCREASE MOST DEALERS HEDGE THE VALUE OF THEIR BONDS IN INVENTORY BY USING BOND FUTURES OR OTHER DERIVATIVE INSTRUMENTS WHOSE VALUE IS DERIVED FROM SOME UNDERLYING ASSET NEVERTHELESS CHUCK RAMSEY A MORTGAGE SECURITIES EXPERT AT ALEX BROWN & SONS INC SAYS THERE ARE GOING TO BE BIG LOSSES ON THE STREET FOR EXAMPLE THE LIQUIDATION OF THE ASKINMANAGED FUNDS AND THE RESULTING COLLAPSE OF MORTGAGEBACKED SECURITIES PRICES INFLICTED LOSSES ON SEVERAL SECURITIES FIRMS THAT HAD LENT MONEY TO THE FUNDS TRADERS SAY KIDDER PEABODY GROUP INC A UNIT OF GENERAL ELECTRIC CO AND BEAR STEARNS COS EACH LOST AS MUCH AS 25 MILLION ON MORTGAGESECURITYRELATED LENDING AND TRADING TRADERS SAY EQUITABLE COS' DONALDSON LUFKIN & JENRETTE SECURITIES INC UNIT TOOK A HIT OF AS MUCH AS 5 MILLION THEY SAY THE THREE FIRMS DECLINE TO COMMENT SOME WALL STREET FIRMS HAVE ALSO SUFFERED BONDTRADING LOSSES AT GOLDMAN SACHS WHICH RACKED UP 27 BILLION IN PRETAX PROFITS IN 1993 PARTLY FROM ITS BOND TRADING THE FIXEDINCOME DIVISION LOST AN ESTIMATED 150 MILLION IN FEBRUARY ALONE ACCORDING TO WALL STREETERS A SPOKESMAN FOR GOLDMAN DIDN'T RETURN PHONE CALLS AT BANKERS TRUST WHICH IS KNOWN FOR ITS TRADING PROWESS AND AVERAGED MORE THAN 400 MILLION IN QUARTERLY TRADING REVENUE LAST YEAR THE BOND DECLINE IS SAID TO HAVE SLASHED FIRSTQUARTER TRADING REVENUE TO ONLY ABOUT 100 MILLION THE BIG NEW YORK BANK DECLINES TO COMMENT THE LOSSES ARE OFFSET BY TRADING OPPORTUNITIES FOR SECURITIES FIRMS AND BANKS PARTICULARLY BECAUSE PRICES HAVE ZIGZAGGED SO WILDLY IN RECENT WEEKS AND THE YIELD CURVE SHOWING THE DIFFERENCE BETWEEN SHORT AND LONGTERM INTEREST RATES IS STILL RELATIVELY STEEP THUS THE FIRMS CAN STILL MAKE MONEY BY SIMPLY HOLDING BIG BATCHES OF BONDS BARTON BIGGS CHAIRMAN OF MORGAN STANLEY ASSET MANAGEMENT BELIEVES THAT THE STOCK AND BOND MARKETS ARE ABOUT TWOTHIRDS OF THE WAY THROUGH THEIR DOWNTURNS HE SAYS THE BIG LOSERS IN BONDS APPEAR TO HAVE BEEN THE AMERICAN INSTITUTIONS HEDGE FUNDS INVESTMENT BANKS AND COMMERCIAL BANKS THAT WERE MAKING A MARKET AND CARRYING INVENTORIES OF BONDS HE ADDS EVERYBODY WENT INTO THE NEW YEAR WITH VERY HIGH INVENTORIES AND ALL IT TOOK WAS A LITTLE TROUBLE IN EUROPE TO SET OFF A SCRAMBLE THE EUROPEAN BOND MARKETS WERE THE FIRST TO SHOW STEEP PRICE DROPS PARTLY BECAUSE SOME US HEDGE FUNDS HAD MADE ILLFATED BETS THERE AND SOLD HEAVILY TO STANCH THEIR LOSSES AT THE OTHER END OF THE US BONDMARKET FOOD CHAIN ARE THOUSANDS OF SMALL SAVERS WHO DISSATISFIED WITH PUNY INTEREST RATES OF 3 ON BANK CERTIFICATES OF DEPOSIT AND MONEYMARKET FUNDS PLUNGED INTO BOND MUTUAL FUNDS WITHOUT REALIZING THAT THEY WEREN'T CUT OUT TO HANDLE ALL THE RISKS ALTHOUGH THE BOND FUNDS OFFERED TWO OR THREE EXTRA PERCENTAGE POINTS OF INTEREST THEIR LOSSES THIS YEAR HAVE WIPED OUT SEVERAL YEARS' WORTH OF EXTRA INTEREST LAWRENCE LAZAR A RETIRED INDUSTRIAL ENGINEER IN SAN MARCOS CALIF SAYS THAT UNTIL THIS WEEK HE CONSIDERED CALIFORNIA MUNICIPALBOND FUNDS WHICH HE HAD OWNED SINCE 1989 REASONABLY SAFE AND THEY DELIVERED CONSISTENT RETURNS I DIDN'T HAVE TO WORRY BUT ON TUESDAY UNNERVED BY PRICE DECLINES OF 6 AND 8 IN TWO BENHAM CALIFORNIA BOND MUTUAL FUNDS MR LAZAR SOLD THEM AS WELL AS GOVERNMENT BONDS HE HELD DIRECTLY I SOLD EVERYTHING I HAD WITH THE NAME BOND ON IT HE SAYS WHY I AM INCLINED TO TAKE AS FEW RISKS AS I CAN TO MAINTAIN MY PRESENT STANDARD OF LIVING UNTIL I KNOW WHAT IS HAPPENING WITH INTEREST RATES AND INFLATION I WANT TO BE MORE CONSERVATIVE THERE ISN'T ANY REASON I CAN'T COME BACK SOME DAY AFTER THINGS SETTLE DOWN CHARLES AND MARY ANN SWISHER A RETIRED COUPLE IN JACKSONVILLE FLA HAVE PLOWED ABOUT 140000 MORE THAN 60 OF THEIR SAVINGS INTO A CORPORATEBOND FUND OVER THE PAST THREE YEARS AS MR SWISHER WATCHES THE DAILY PRICE QUOTATIONS HE SAYS EVERYTHING SEEMS TO BE MINUS MINUS MINUS WHICH DOESN'T MAKE YOU FEEL TOO GOOD HE IS STANDING PAT FOR NOW BUT IF SHORTTERM RATES KEEP RISING OR IF THE LOCAL CREDIT UNION RAISES RATES ON DEPOSITS TO 475 FROM 45 HE SAYS HE WILL PROBABLY YANK HIS MONEY OUT OF THE BOND FUND MANY BONDFUND INVESTORS DON'T REALIZE THE SCOPE OF THEIR LOSSES I'M JUST SO BUSY A TEXAN SAYS I'M GOING TO VISIT MY BROKER TOMORROW AND FIND OUT SOME EXPERTS BELIEVE THAT AS INVESTORS' AWARENESS OF THE ROUT GROWS MORE WILL BAIL OUT OF THEIR BOND FUNDS FUELING FURTHER SELLING AND PRICE DECLINES KEN GREGORY EDITOR OF NOLOAD FUND ANALYST AN ORINDA CALIF NEWSLETTER SAYS MANY INVESTORS WHO ABANDONED BANK CDS TO BUY BOND FUNDS HAVE BEEN DOING A FAIR AMOUNT OF DUMPING AND IT SEEMS TO BE ACCELERATING OVER THE LAST WEEK OR TWO JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS SAYS WE HAVE DOUBLEDIGIT LOSSES FOR SOME FUNDS AND 7 TO 8 LOSSES FOR MANY ESTABLISHED FUNDS THAT'S A PRETTY STEEP AND WORRISOME LEVEL FOR MANY FIXEDINCOME INVESTORS THERE WILL BE REDEMPTIONS AS THIS IS PUBLICIZED AND PEOPLE DIGEST THEIR STATEMENTS LAURA JERESKI AND MICHAEL SICONOLFI CONTRIBUTED TO THIS ARTICLE 9404070069 940407 WHO'S NEWS WASSERSTEIN COPRESIDENT PARR LEAVES TO HEAD MORGAN STANLEY INSURANCE UNIT BY ALEXANDRA PEERS AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK GARY PARR COPRESIDENT OF WASSERSTEIN PERELLA & CO IS LEAVING TO JOIN MORGAN STANLEY GROUP INC THE LATEST IN A SERIES OF HIGHPROFILE DEFECTIONS FROM WASSERSTEIN A 1980S MERGERS POWERHOUSE AT MORGAN STANLEY MR PARR 37 YEARS OLD WILL HEAD THE GLOBAL INSURANCE GROUP AND SERVE AS A MANAGING DIRECTOR AND MEMBER OF THE INVESTMENTBANKING STRATEGY COMMITTEE TWO WASSERSTEIN BANKERS JOIN MR PARR IN HIS MOVE TO MORGAN STANLEY MARK ELLMAN 36 WHO HAD BEEN A MANAGING DIRECTOR AT WASSERSTEIN WILL BE A PRINCIPAL IN MORGAN STANLEY'S GLOBAL INSURANCE GROUP STEPHEN A FROMM 29 A VICE PRESIDENT AT WASSERSTEIN WILL SERVE AS AN ASSOCIATE THE HIRE IS SOMETHING OF A COUP FOR MORGAN STANLEY WHICH HAS BEEN LOSING TOP BANKERS TO SMITH BARNEY SHEARSON INC THE BROKERAGE UNIT OF TRAVELERS INC AND FOR MORGAN STANLEY THE ADDITION OF MR PARR AND HIS SIZABLE ROSTER OF CLIENTS IS WELLTIMED THE INSURANCE INDUSTRY HAS BEEN ACTIVE IN SECURITIES UNDERWRITING AND MERGERS IN RECENT MONTHS THE INSURANCE INDUSTRY IS CHANGING RADICALLY IT'S CONSOLIDATING AND THE MAJOR PLAYERS ARE MOVING PIECES AROUND SAID ROBERT MATSCHULLAT MORGAN STANLEY'S HEAD OF GLOBAL INVESTMENT BANKING WITH GARY PARR WE'LL BE ABLE TO TAKE OUR LEADING POSITION TO A DOMINANT POSITION AT WASSERSTEIN MR PARR BUILT A HEFTY INSURANCE PRACTICE IN RECENT YEARS HE ADVISED TRAVELERS CORP ON ITS TAKEOVER BY PRIMERICA CORP AND ADVISED THE NEW YORK INSURANCE DEPARTMENT ON THE DEMUTUALIZATION OF EQUITABLE COS SAID MR PARR MORGAN STANLEY IS THE PREMIER INTERNATIONAL INVESTMENT BANK IN MY JUDGMENT AND A GREAT OPPORTUNITY MR PARR'S DEPARTURE COMES AS WASSERSTEIN PERELLA IS SCRAMBLING TO REGAIN ITS CLOUT ON WALL STREET WHEN THE FIRM WAS FOUNDED IN 1988 IT DOMINATED THE MERGERS BUSINESS AS MERGER ACTIVITY COOLED THE FIRM MADE ATTEMPTS TO BRANCH OUT INTO SECURITIES UNDERWRITING CURRENCY AND DERIVATIVES TRADING BUT NEVER MET WITH THE SAME DEGREE OF SUCCESS NOW THE MERGERS BUSINESS IS HEATING UP AGAIN BUT THE BULK OF THE BUSINESS ISN'T IN THE HOSTILE TAKEOVERS THAT WERE THE HALLMARK OF THE 1980S AND WASSERSTEIN'S SPECIALTY MR PARR IS THE SECOND HIGHPROFILE EXIT FROM WASSERSTEIN TO MORGAN STANLEY IN RECENT MONTHS HE FOLLOWS IN THE FOOTSTEPS OF MERGERS SUPERSTAR AND WASSERSTEIN PERELLA COFOUNDER JOSEPH PERELLA WHO MOVED TO MORGAN STANLEY AS A MANAGING DIRECTOR OF GLOBAL INVESTMENT BANKING IN NOVEMBER AFTER A LONG COURTSHIP BY SEVERAL WALL STEET FIRMS TWO WEEKS AGO WASSERSTEIN HIRED FREDERIC SEEGAL THE FORMER COHEAD OF CORPORATE FINANCE AT SALOMON BROTHERS TO BE COPRESIDENT ALONG WITH MR PARR MR SEEGAL'S DECISION WAS WIDELY SEEN AS A VOTE OF CONFIDENCE IN WASSERSTEIN 9404070068 940407 TECHNOLOGY & HEALTH CALGENE'S BIOTECH TOMATO PASSES A HURDLE AT FDA WASHINGTON IN A HEARING ON THE SAFETY OF BIOENGINEERED FOODS US FOOD AND DRUG ADMINISTRATION STAFF MEMBERS GAVE A PRELIMINARY VOTE OF CONFIDENCE TO CALGENE INC'S FLAVR SAVR TOMATO CALLING IT AS SAFE AS OTHER CURRENTLY CONSUMED TOMATOES THE THREEDAY COLLOQUY BETWEEN FDA STAFFERS AND OUTSIDE EXPERTS IS FOCUSED BROADLY ON HOW TO EVALUATE THE SAFETY OF FRUITS VEGETABLES AND CEREALS THAT ARE GENETICALLY ENGINEERED THE AGENCY ISN'T EXPECTED TO YIELD A FINAL DECISION ON CALGENE'S BID FOR MARKET APPROVAL THIS WEEK HOWEVER THE FLAVR SAVR TOMATO WHICH IS ENGINEERED TO RESIST ROTTING IS THE FIRST OF AN EXPECTED CORNUCOPIA OF GENESPLICED CROPS SOON TO EMERGE FROM AGRICULTURAL BIOTECH COMPANIES THUS FDA STATEMENTS ABOUT THE PRODUCT COULD BE A PREVIEW OF THE GOVERNMENT'S FUTURE STANCE ON REGULATING THIS FUTURISTIC HARVEST SHARES OF CALGENE BASED IN DAVIS CALIF CLOSED AT 1475 A SHARE UP 1875 IN TRADING ON THE NASDAQ STOCK MARKET 9404070067 940407 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 206 MILLION OF NOTES DUE APRIL 14 1999 PRICED AT PAR TO YIELD 678 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 36 BASIS POINTS ABOVE FIVEYEAR TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN BANK SYSTEM 168 MILLION OF NOTES DUE APRIL 14 1997 PRICED AT PAR TO YIELD 606 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 24 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INC FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF DEBENTURES DUE APRIL 13 1999 PRICED AT PAR TO YIELD 683 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 38 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF MEDIUMTERM NOTES DUE APRIL 15 2024 PRICED AT PAR TO YIELD 818 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 79 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC VF CORP 100 MILLION OF NOTES DUE APRIL 1 2004 PRICED AS 76S AT 99857 TO YIELD 762 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR SEVEN YEARS AND WAS PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO BUGABOO CREEK STEAK HOUSE INC INITIAL OFFERING OF 15 MILLION COMMON SHARES PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY TUCKER ANTHONY INC LEAR SEATING CORP INITIAL OFFERING OF 94 MILLION COMMON SHARES PRICED AT 1550 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC MTI TECHNOLOGY CORP INITIAL OFFERING OF 57 MILLION COMMON SHARES PRICED AT 9 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC AND FURMAN SELZ INC LOUISIANA 200 MILLION OF 1994 SERIES A FULLFAITHANDCREDIT BONDS APPARENTLY WON BY A PRUDENTIAL SECURITIES INC GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 45 IN 1996 TO 64 IN 2014 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 335 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 1725 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS COMMERZBANK OVERSEAS FINANCE NV GERMAN PARENT 500 MILLION MARKS OF 6 EUROBONDS DUE APRIL 27 1999 AT ISSUE PRICE 1019 VIA COMMERZBANK AG AT COMANAGERS' BREAKEVEN PRICE 999 BONDS YIELD 602 A MARGIN OF 49 BASIS POINTS OVER COMPARABLE TREUHAND OBLIGATION GUARANTOR COMMERZBANK AG FEES TWO BAYERISCHE VEREINSBANK AG GERMANY 100 BILLION LIRE OF 79 EUROBONDS DUE FEB 11 2004 AT ISSUE PRICE 9555 VIA CREDITO ITALIANO KIDDER PEABODY SECURITIES CO AND BAYERISCHE VEREINSBANK BONDS TO TRADE WITH IDENTICAL ISSUE OF 250 BILLION LIRE LAUNCHED JAN 10 AT 1017 FEES UNDISCLOSED EXPORT FINANCE & INSURANCE CORP AUSTRALIA 75 MILLION AUSTRALIAN DOLLARS OF 725 EUROBONDS DUE MAY 27 1997 AT ISSUE PRICE 10075 VIA HAMBROS BANK LTD AT COMANAGERS' BREAKEVEN PRICE 99375 BONDS YIELD 749 GUARANTOR AUSTRALIA FEES 15 INCLUDING 0125 FOR LEAD MANAGER FINLAND SOVEREIGN 15 BILLION OF FLOATINGRATE EURONOTES DUE MAY 6 1999 AT ISSUE AND FIXED REOFFER PRICE 9968 VIA GOLDMAN SACHS INTERNATIONAL LTD INTEREST PAID QUARTERLY AND FLOATS FLAT AT LONDON INTERBANK OFFERED RATE CALLABLE AFTER FIRST YEAR AT PAR FEES 015 PRUDENTIAL FUNDING CORP US PARENT 60 MILLION CANADIAN DOLLARS OF 775 EUROBONDS DUE DEC 19 1997 AT ISSUE PRICE 1006 VIA HAMBROS BANK LTD REOFFERED AT 99325 TO YIELD 8 ANNUALLY A SPREAD OF 40 BASIS POINTS ABOVE THE COMPARABLE CANADIAN GOVERNMENT BOND FEES 15 QUEBEC CANADIAN PROVINCE FIVE BILLION FRENCH FRANCS OF 6875 EUROBONDS DUE APRIL 22 2004 AT ISSUE PRICE 10028 VIA SOCIETE GENERALE AND MERRILL LYNCH CAPITAL MARKETS FRANCE AT FIXED REOFFER PRICE 9863 BONDS YIELD 707 A SPREAD OF 65 BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES TWO SWEDEN SOVEREIGN 150 BILLION LIRE OF 9125 EUROBONDS DUE MAY 5 2004 AT ISSUE PRICE 10055 VIA BANCA COMMERCIALE ITALIANA AT COMANAGERS' BREAKEVEN PRICE 9855 BONDS YIELD 935 FEES TWO YAMANOUCHI PHARMACEUTICAL CO JAPAN 40 BILLION YEN OF CONVERTIBLE EUROBONDS DUE MARCH 31 2014 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL LTD TERMS TO BE FIXED WEDNESDAY AND BONDS CONVERTIBLE INTO ORDINARY SHARES AT INDICATED PREMIUM 25 CONVERSION PERIOD IS MAY 9 TO MARCH 24 2014 CALLABLE SUBJECT TO SHARE PRICE BEING AT LEAST 150 OF CONVERSION PRICE ALSO CALLABLE APRIL 1 1998 TO MARCH 31 2004 AT 103 FROM APRIL 1 2004 TO MARCH 31 2009 AT 102 FROM APRIL 1 2009 TO MARCH 30 2014 AT 101 DOWNWARD REFIXING CLAUSE APRIL 22 1998 APRIL 22 2004 AND APRIL 22 2009 WHICH IS AS FOLLOWS ON THOSE DATES BONDS CAN BE REFIXED DOWNWARD TO MAINTAIN CONVERSION PREMIUM 25 IF SHARE PRICE FALLS BELOW INITIAL FIXING PRICE APRIL 13 PRICE TO BE CALCULATED FROM 30DAY AVERAGE 45 DAYS BEFORE REVISION DATES BONDS CANNOT BE REFIXED LOWER THAN 50 OF INITIAL FIXING PRICE APRIL 13 FEES 25 INCLUDING 035 FOR LEAD MANAGER INTEREST PAYABLE SEMIANNUALLY 9404070066 940407 DON'T LOOK AT ME I'M WEARING BEIGE AND I FEEL SO CORRECT SPRING CHIC IS NOCOLOR COLOR WITH TOO MANY NAMES DRY CLEANERS CALL IT GREAT BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEAREMPTY BUS JOSTLED AND LURCHED ALONG MADISON AVENUE BUT NEW YORK FASHION CONSULTANT VICKY ROSS CLUNG TO THE OVERHEAD STRAP REFUSING TO TAKE A SEAT SHE WAS DRESSED IN A SPOTLESS BEIGE LINEN SUIT EN ROUTE TO A RESTAURANT I DIDN'T WANT TO DO ANYTHING THAT WOULD GET ME WRINKLED OR STAINED BEFORE I GOT THERE SHE SAYS SUCH PRECAUTIONS IN THE NAME OF CHIC WILL BE DE RIGUEUR THIS SPRING AS SHOPPERS CONTEND WITH THE LATEST FASHION DICTATE BEIGE FROM CALVIN KLEIN TO THE GAP FASHION PURVEYORS HAVE FLOODED MALLS WITH ECRU KHAKI AND CREAM A COLORLESS SEA THAT REMINDS FASHION CONSULTANT ALAN MILLSTEIN OF MORNING PORRIDGE CALL IT OATMEAL SOAPSTONE ALPINE OR STRAW AND DESIGNERS DO BEIGE BY ANY OTHER NAME IS STILL BLAH BUT IN THESE CAUTIOUS TIMES THAT'S A VIRTUE INDEED THE SPRING SPIEGEL CATALOG CELEBRATES THE UTTER BLANDNESS OF BEIGE IN THE ABSENCE OF COLOR THERE APPEARS NO RIGHT NO WRONG NO BLACK NO WHITE NO EXTREMES NO SNAP JUDGMENTS NO PRECONCEIVED NOTIONS ONLY WHAT'S REALLY THERE THE BEIGE BOOM IS PART OF A UTILITARIAN FASHION BACKLASH AGAINST THE DESIGNERLOGOED FURSWATHED 1980S BUSINESSMEN ARE SKIPPING TIES ON FRIDAYS AFFLUENT LADIES ARE LUNCHING IN PANTS AND EVERYBODY IS DONNING UNOBTRUSIVE INOFFENSIVE NEUTRAL COLORS SHOPPERS HAVE BEEN QUICK TO MASTER THE SUBTLE SHADINGS IN THE NEW PALLID PALETTE A CUSTOMER RECENTLY CALLED NEW ORLEANS RETAILER RUBENSTEIN BROTHERS EXPRESSLY REQUESTING A PAIR OF PRALINE PANTS IT STARTED A FEW YEARS BACK WITH BLACK WHICH MANY WOMEN TURNED INTO A VIRTUAL UNIFORM SOPHISTICATED SLIMMING AND EMINENTLY PRACTICAL BLACK IS A PROTECTIVE SHELL THAT SEEMS IMPENETRABLE AND GIVES PEOPLE THIS FEELING OF BEING EMPOWERED SAYS LEATRICE EISEMAN A COLOR PSYCHOLOGIST FOR PANTONE INC A CONSULTING FIRM THAT TRACKS COLOR TRENDS BUT NOW SHE PREDICTS THE BLACKPACK IS READY FOR A CHANGE BEIGE IS THE NEW BLACK FOR THIS TIME OF YEAR SHE DECLARES DRESSING IN NEUTRALS IS A FORM OF CAMOUFLAGE THAT FOSTERS A SENSE OF SECURITY OR SO THE THEORY GOES BEIGE SAYS DON'T LOOK AT ME' EXPLAINS MS ROSS THE CONSULTANT WE ARE ALL DESPERATELY AFRAID OF CRIME SHE SAYS AND NOBODY WANTS TO STAND OUT ANYMORE BEIGE ALSO CARRIES AN AURA OF POLITICAL CORRECTNESS IN AN ERA WHEN ECOSHOPPERS PAY A PREMIUM FOR NATURAL COTTONS AND LINENS UNSULLIED BY POLLUTING DYES AND CHEMICALS THE HOMEFURNISHINGS INDUSTRY HIT UPON THIS FIRST PUSHING BEIGE ORGANIC COTTON FOR EVERYTHING FROM BED SHEETS TO THE LOOSEFITTING WRINKLY SLIPCOVERS THAT CHARACTERIZE THE DECORATING TREND KNOWN AS SHABBY CHIC IF FASHIONABLE FURNITURE HAS COME TO RESEMBLE THE UNMADE BED SO HAS SOME OF THIS SPRING'S BEIGE WOMEN'S WEAR NOTABLY LINEN SUITS THAT DON'T HOLD A PRESS AND OVERSIZED SWEATERS WITH RAW HEMS AND EXPOSED SEAMS FOR MEN THE LATEST PALE BANDCOLLAR SHIRTS AND UPDATED NEHRU JACKETS SUGGEST A ZENLIKE AUSTERITY LONG BEFORE NEIGHBORHOOD DRY CLEANERS AND WASHING MACHINES BEIGE APPAREL WAS FAVORED BY THE LEISURE CLASS THE ONLY PEOPLE WHO COULD AFFORD ITS UPKEEP BUT CUTTINGEDGE DESIGNER LIZA BRUCE SCOFFS AT THE NOTION THAT BEIGE IS SOMEHOW RETRO I'M CALLING IT NUDE SHE DECLARES OF HER SIGNATURE SHADE OF PINKISHBEIGE STITCHED THIS SPRING INTO SKIMPY SLIP DRESSES 350 AND UP THAT GIVE THE EFFECT THAT YOU ARE WEARING THE MINIMUM AMOUNT OF DECORATION AND FUSS IN ONE WAY HOWEVER MS BRUCE IS BUCKING THE TREND SHE DOESN'T COTTON TO NATURAL FIBERS MY CLOTHES ARE ALL ABOUT SYNTHETICS THE ULTIMATE POLYESTERS THAT WE ARE EXPLORING IN A NEW WAY SHE SAYS FOR FALL MS BRUCE IS READYING A LINE OF HOSPITAL GOWN DRESSES AGAIN IN NUDE THE LOOSEFITTING DESIGNS WHICH SHE DESCRIBES AS RESEMBLING SURGICAL SCRUBS BUT SLIGHTLY MORE BIZARRE ARE DEVOID OF ZIPPERS OR BUTTONS HER COLLECTION WILL BE UNVEILED NEXT WEEK DURING SEVENTH AVENUE'S ROUND OF FALL FASHION SHOWS IF HABERDASHERS HAVE THEIR WAY NOVELIST TOM WOLFE WILL NO LONGER BE A STANDOUT IN HIS ICECREAM SUITS THRONGS OF MEN WILL BE ATTIRED IN THE LIGHT STUFF AT LIMITED INC'S STRUCTURE MENSWEAR CHAIN THE SPRING THEME IS AL NATURALE AND BEIGE DOMINATES DAVID MANGINI THE CHAIN'S PRESIDENT KNEW SOME STORE MANAGERS WERE SKEPTICAL THAT CONSERVATIVE MALE SHOPPERS WOULD TAKE TO THE NEW MONOCHROMATIC LOOK SO FOR A FEBRUARY DISTRICT MANAGERS' MEETING HE BROUGHT A BIT OF CASABLANCA TO THE COMPANY'S COLUMBUS OHIO HEADQUARTERS SIXTY MANAGERS SQUATTED ON THE FLOOR UNDER A TENT OF BEIGE CANVAS PICNICKING ON WHOLEGRAIN SANDWICHES TIED UP WITH TWINE SAND AND SEASHELLS WERE SCATTERED ABOUT WHILE ELECTRIC FANS BILLOWED SWATHS OF PALE GAUZE CREATING THE EFFECT OF A SEA BREEZE DRESSED IN BEIGE SHIRT VEST AND PANTS MR MANGINI HELD FORTH ON THE NATURAL LOOK LOOK AROUND THIS IS WHAT YOU HAVE TO CONVEY TO THE STORES THAT CUSTOMERS DON'T HAVE TO ADD COLOR TO THEIR WARDROBE HE TOLD THEM WOMEN'SWEAR RETAILERS ARE HOPING THAT BEIGE WILL HELP REV UP SALES THAT HAVE STAGNATED IN RECENT YEARS AS SHOPPERS CLUNG TO THEIR BASIC BLACKS STORES ARE PROMOTING ROPESOLED ESPADRILLES BONEHUED HANDBAGS AND OTHER ACCESSORIES THAT COORDINATE WITH THE NEW PALE FASHIONS WHAT CAN YOU WEAR WITH A BEIGE SUIT EXCEPT MORE BEIGE ASKS CAROLINE RENNOLDS MILBANK A FASHION HISTORIAN BUT BARGAINHUNTERS BEST BEWARE LIGHTCOLORED FABRICS CAN MAGNIFY FLAWS IN CONSTRUCTION A BEIGE SUIT AT 2000 LOOKS A LOT BETTER IN QUALITY THAN ONE AT 200 BUT IN BLACK IT'S HARDER TO TELL THE DIFFERENCE NOTES CONSTANCE CR WHITE ELLE MAGAZINE'S EXECUTIVE FASHION EDITOR NOR IS BEIGE UNIFORMLY FLATTERING IT TENDS TO ADD THE ILLUSION OF EXTRA POUNDAGE FOR ONE THING AND FAIRSKINNED BLONDES IN PARTICULAR COMPLAIN IT'S A WASHOUT BEIGE SAPS ME OF COLOR SO I WIND UP LOOKING LIKE A GIANT STALK OF WHEAT SAYS MARIANNE KLAN A SALES MANAGER FOR A CARPET COMPANY IN NEW YORK SO FAR THIS SPRING THE ONLY CLEAR BEIGE TRIUMPH AT RETAIL HAS BEEN KHAKI AND CHINO PANTS GAP INC LED THE WAY WITH ITS ADVERTISING CAMPAIGN FEATURING VINTAGE PHOTOS OF HOLLYWOOD LEGENDS AND THE COPY LINE JOHN WAYNE OR HUMPHREY BOGART OR STEVE MCQUEEN WORE KHAKIS EDDIE HAGGAR LTD HAS BOOKED ORDERS FOR TWO MILLION PAIRS OF ITS PALMETTOS PLEATED CHINO GASOLINE PANTS SO FAR THIS YEAR UP 75 FROM LAST YEAR THE NEW PALE LOOK IS PROVING A WINDFALL IN ANOTHER QUARTER THE TEMPERATURE IS ALREADY HOVERING IN THE 80S IN PHOENIX WHERE THE CARNATION ONEHOUR CLEANERS SAYS MORE THAN HALF ITS BUSINESS IS COMING FROM BEIGE AND OTHER LIGHTCOLORED CLOTHES WE'RE JUST THRILLED SAYS STEVE BUTLER GENERAL MANAGER PEOPLE HAVE TO CLEAN THEM VIRTUALLY EVERY TIME THEY WEAR THEM IT'S NOT UNCOMMON HE ADDS FOR A CUSTOMER TO BRING IN THE SAME PAIR OF PANTS A COUPLE OF TIMES IN A SINGLE WEEK 9404070065 940407 LINK OF PUT OPTIONS TO FALL IN STOCK MARKET QUESTIONED WASHINGTON THE HOUSE FINANCE SUBCOMMITTEE CHAIRMAN ASKED THE SECURITIES AND EXCHANGE COMMISSION TO ANALYZE THE ROLE OF OVERTHECOUNTER OPTIONS IN RECENT STOCKMARKET VOLATILITY IN A LETTER TO SEC CHAIRMAN ARTHUR LEVITT REP EDWARD MARKEY D MASS SAID THAT PREVIOUS SEC ANALYSES OF THE STOCKMARKET DROPS IN OCTOBER 1989 AND NOVEMBER 1991 TURNED UP EVIDENCE THAT OTC OPTIONS AND OTHER HEDGING ACTIVITIES CONTRIBUTED TO THE MARKET DECLINES OTC OPTIONS ARE NEGOTIATED BETWEEN TWO MARKET PARTICIPANTS TO HEDGE AGAINST RISKS IN THEIR OWN PORTFOLIOS UNLIKE LISTED OPTIONS OTC OPTIONS AREN'T TRADED ON AN EXCHANGE AND AREN'T AVAILABLE TO INDIVIDUAL INVESTORS SOME MARKET ANALYSTS SUGGEST THAT THE NATURE AND MAGNITUDE OF THESE RECENT MARKET MOVEMENTS MAY HAVE BEEN EXACERBATED BY TRADING ACTIVITIES OF SPECULATIVE HEDGE FUNDS AND BY THE USE OF PORTFOLIO PUT OPTIONS AND ASSOCIATED DYNAMIC HEDGING STRATEGIES REP MARKEY WROTE TO MR LEVITT PORTFOLIO PUT OPTIONS GIVE INVESTORS THE RIGHT TO SELL A BASKET OF STOCKS AT A FIXED PRICE AT SOME POINT IN THE FUTURE THE SEC HAS REPORTED PREVIOUSLY THAT PORTFOLIO PUT OPTIONS BEGAN BEING USED ACTIVELY IN 1988 AND THAT THEIR USE HAS BEEN GROWING MR MARKEY ASKED THE SEC TO REPORT BY APRIL 27 ON THE EXTENT OF USE OF NEGOTIATED OPTIONS AND HOW THE AGENCY MONITORS OPTIONS ACTIVITIES 9404070064 940407 MARKETING & MEDIA HOLLYWOOD GROUP TO BUY THE PHILADELPHIA EAGLES PHILADELPHIA A GROUP CONTROLLED BY HOLLYWOOD PRODUCER JEFFREY LURIE AGREED TO BUY THE PHILADELPHIA EAGLES FOOTBALL TEAM FOR A RECORDBREAKING 185 MILLION THE SALE IF APPROVED BY OWNERS OF 21 OF THE 28 OTHER NATIONAL FOOTBALL LEAGUE TEAMS WOULD BE THE MOST EXPENSIVE IN NFL HISTORY EARLIER THIS YEAR ROBERT KRAFT WHO BUILT HIS FORTUNE IN PAPER AND PACKAGING PURCHASED THE NEW ENGLAND PATRIOTS FOR AN ESTIMATED 170 MILLION OWNERS OF NEW FRANCHISES IN CHARLOTTE NC AND JACKSONVILLE FLA PAID 140 MILLION TO ENTER THE LEAGUE BUT WILL RECEIVE ONLY 1625 MILLION A YEAR INITIALLY IN TELEVISION REVENUE LESS THAN HALF THE SHARE GOING TO ESTABLISHED TEAMS THE SALE INDICATES UNDERLYING HEALTH IN THE NFL DESPITE RECENT CONCERNS ABOUT BALLOONING SALARIES NINE YEARS AGO NORMAN BRAMAN A FLORIDA AUTOMOBILE SALES AND LEASING ENTREPRENEUR BOUGHT THE EAGLES FOR 65 MILLION GREG AIELLO A SPOKESMAN FOR THE NFL SAID MR LURIE'S OWNERSHIP COULD BE APPROVED BEFORE THE DRAFT APRIL 24 MR LURIE CONTROLS CHESTNUT HILL PRODUCTIONS A HOLLYWOOD COMPANY INVOLVED IN MOVIE PRODUCTIONS A SPOKESMAN FOR MR LURIE SAYS HE PLANS TO MOVE FROM THE LOS ANGELES AREA TO PHILADELPHIA 9404070063 940407 POLITICS & POLICY USE OF FUNDING AS DESEGREGATION CURE HAS FAILED STUDY OF FOUR DISTRICTS SAYS BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL SCHOOL DISTRICTS USING A POPULAR DESEGREGATION REMEDY HAVEN'T SHOWN THAT BLACK STUDENTS ARE MAKING EDUCATIONAL GAINS OR CLOSING ACHIEVEMENT GAPS WITH WHITE STUDENTS ACCORDING TO A NEW HARVARD UNIVERSITY STUDY OF FOUR OF THE LARGEST SUCH EXPERIMENTS THE HARVARD ANALYSIS SAID THAT DISTRICTS THAT HAVE SPENT HUNDREDS OF MILLIONS OF DOLLARS SINCE 1977 TO LAUNCH SPECIAL ACADEMIC PROGRAMS IN SCHOOLS THAT ARE NEARLY ALL BLACK HAVEN'T ADEQUATELY MONITORED RESULTS IN THESE SOCALLED MILLIKEN SCHOOLS IN TWO DISTRICTS STUDIED BY HARVARD LITTLE ROCK ARK AND AUSTIN TEXAS LIMITED AVAILABLE TEST DATA SHOWED THAT BLACK STUDENTS WERE AS FAR BEHIND WHITE STUDENTS AS THEY WERE WHEN THE SPECIAL PROGRAMS WERE STARTED THE FINDINGS IN THIS REPORT SUGGEST THAT THE COMPENSATORY EFFORTS HAVE FAILED TO MEET THE SUPREME COURT MANDATE TO REMOVE THE EFFECTS OF DISCRIMINATION SAID THE STUDY BY RESEARCHERS AT THE HARVARD PROJECT ON SCHOOL DESEGREGATION IN 1977 IN THE MILLIKEN VS BRADLEY CASE COVERING DETROIT SCHOOLS THE US SUPREME COURT PERMITTED THE CITY TO PROVIDE EXTRA FUNDING TO HEAVILY BLACK SCHOOLS THAT HAD SUFFERED FROM SEGREGATION BUT WEREN'T EASILY DESEGREGATED SINCE THEN PLAINTIFFS HAVE SETTLED MANY DESEGREGATION CASES IN WHICH EXTRA FUNDING FOR THESE RACIALLY ISOLATED SCHOOLS WAS ACCEPTED INSTEAD OF EFFORTS TO MIX RACES THE EXTRA MONEY WAS MEANT TO EQUALIZE EDUCATION BUT THERE ISN'T ANY EQUALITY SAID JOSEPH FELDMAN ONE OF THE STUDY'S AUTHORS IN ADDITION TO LITTLE ROCK AND AUSTIN MR FELDMAN AND HIS COLLEAGUES ALSO EXAMINED DETROIT AND PRINCE GEORGE'S COUNTY MD ONE OF WASHINGTON DC'S LARGEST SUBURBAN DISTRICTS HOWEVER THE RESEARCHERS COULDN'T FIND SCORES THAT ALLOWED FOR COMPARISONS IN DETROIT OFFICIALS AT THE FOUR SCHOOL DISTRICTS COULDN'T BE REACHED FOR COMMENT IN LITTLE ROCK BEGINNING IN 1990 SCHOOLS THAT WERE AT LEAST 80 BLACK WERE GIVEN TWICE THE NORMAL PERSTUDENT FUNDING FOR ACADEMIC PROGRAMS DESIGNED TO BOLSTER BLACK ACHIEVEMENT AND ALSO TO ATTRACT WHITE STUDENTS BUT BETWEEN 1992 AND 1993 THE STUDY SAID BLACK STUDENTS' SCORES ON STANDARDIZED ACHIEVEMENT TESTS HAVE DROPPED SIGNIFICANTLY AT THE SCHOOLS WHILE ALL BUT ONE OF THE SCHOOLS WITH EXTRA FUNDING REMAINED MORE THAN 80 BLACK DISTRICTWIDE SINCE 1991 THE STUDY SAID THE GAP IN SCORES BETWEEN WHITES AND BLACKS HAS GROWN TO 13 POINTS FROM NINE POINTS LITTLE ROCK SCHOOL OFFICIALS COULDN'T BE REACHED FOR COMMENT AUSTIN ADOPTED A MILLIKENTYPE SOLUTION VOLUNTARILY TO AID MINORITY STUDENTS AFTER FEDERAL COURT INTERVENTION ENDED BUT IN 1992 STUDENTS AT PREDOMINANTLY BLACK AND MEXICANAMERICAN SCHOOLS SCORED WELL BELOW THE REST OF THE DISTRICT AT ALL GRADE LEVELS AFTER RECEIVING FIVE YEARS OF SPECIAL FUNDING HARVARD SAID AUSTIN SCHOOL OFFICIALS COULDN'T BE REACHED FOR COMMENT IN PRINCE GEORGE'S COUNTY BLACK STUDENTS IN SPECIALLY FUNDED SCHOOLS DID MAKE GAINS RELATIVE TO OTHER BLACK STUDENTS BUT THE HARVARD RESEARCHERS SAID THE DISTRICT COULDN'T PROVIDE ANY COMPARISONS WITH WHITE STUDENTS 9404070062 940407 ENVIRONMENT MAINE REPEALS US'S ONLY BAN ON DRINK BOXES BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL THE DRINK BOX IS COMING BACK TO MAINE THE ONLY STATE THAT HAD BANNED THEM IN A VICTORY FOR THE PACKAGING INDUSTRY AND A DEFEAT FOR ENVIRONMENTALISTS THE GOVERNOR ON TUESDAY SIGNED A REPEAL OF THE STATE'S 1990 BAN ON SALE OF THE BOXES ENVIRONMENTALISTS HAD HAILED THE BAN AS THE VANGUARD OF INCREASED REGULATION OF PACKAGING AND 12 STATES HAD CONSIDERED SIMILAR MOVES DRINK BOXES KNOWN AS ASEPTIC PACKAGES PROTECT THEIR CONTENTS WITH SEVERAL LAYERS OF PAPER POLYURETHANE AND ALUMINUM ENVIRONMENTALISTS HAD LONG FOUGHT TO BAN THEM ARGUING THAT BECAUSE OF THE BOXES' MAKEUP RECYCLING WAS EXPENSIVE AND IMPRACTICAL THE REPEAL IN MAINE CAME AFTER INTENSIVE LOBBYING BY ASEPTIC PACKAGING FIRMS WHICH SUCCESSFULLY COUNTERED THAT RECYCLING PROGRAMS WERE FEASIBLE PACKAGING INTERESTS WON SUPPORT FROM SOME ENVIRONMENTAL GROUPS SPLITTING THE OPPOSITION AND THE RELATIVELY SCANT AMOUNT OF WASTE DIVERTED FROM MAINE'S LANDFILLS BECAUSE OF THE BAN MADE IT A LESS POPULAR CAUSE FOR WELLFUNDED NATIONAL GREEN GROUPS THAT MIGHT HAVE HELPED KEEP THE BAN WHILE ALL POLLUTION IS LOCAL SEVERAL ENVIRONMENTAL GROUPS ARE MOVING MORE TOWARD MARKETBASED IDEAS AND INTERNATIONAL ISSUES SAYS NEIL SELDMAN PRESIDENT OF THE INSTITUTE FOR LOCAL SELF RELIANCE A WASHINGTON ENVIRONMENTAL GROUP THE REPEAL HE SAYS IS A TOTAL DEFEAT JIM FINN SPOKESMAN FOR THE ASEPTIC PACKAGING COUNCIL SAYS THE BOXES CAN BE RECYCLED BUT I THINK THERE IS A CERTAIN SEGMENT OF ENVIRONMENTALISTS THAT WILL NEVER BE SATISFIED WITH WHAT WE DO HE SAYS SOME ENVIRONMENTALISTS LOOKED AT THIS PACKAGE FOR ABOUT 30 SECONDS AND DECIDED IT WAS BAD OTHERS WHO TOOK THE TIME TO STUDY IT HAVE COME TO DIFFERENT CONCLUSIONS THE REVERSAL IS A REMARKABLE ACHIEVEMENT FOR THE ASEPTIC PACKAGING INDUSTRY DOMINATED BY TWO DRINKBOX MAKERS TETRA PAK INC CHICAGO AND COMBIBLOC INC COLUMBUS OHIO WHICH HAVE BEEN MARKETING THE PRODUCT SINCE 1983 THEY SHIP MORE THAN THREE BILLION PACKAGES ANNUALLY THE RETAIL VALUE OF THE PRODUCTS IS MORE THAN 1 BILLION A YEAR TETRA PAK SAYS THE FIRMS ROLLED INTO ACTION WHEN THE BAN WAS ENACTED IN 1990 FORMING THE ASEPTIC PACKAGING COUNCIL TO WORK FOR THE BAN'S REPEAL AND TO FEND OFF SIMILAR MEASURES ELSEWHERE EARLY STEPS WEREN'T ALWAYS SUCCESSFUL IN 1991 ATTORNEYS GENERAL IN 10 STATES SUED THE DRINKBOX MAKERS OVER NEWSPAPER ADVERTISEMENTS THAT READ DRINK BOXES ARE AS EASY TO RECYCLE AS THIS PAGE THE COMPANIES INSISTED THE ADS WERE ACCURATE BUT PAID 75000 IN LEGAL COSTS AND PROMISED TO DROP THE ADS THE ASEPTIC PACKAGERS CONTINUED TO GENERATE STUDIES AND EXPERTS ARGUING THAT THE PACKAGING COULD BE RECYCLED AND WAS IN FACT ENVIRONMENTALLY FRIENDLY AND THEY SAID DRINK BOXES ACCOUNT FOR JUST 003 OF MAINE'S WASTE STREAM BUT RECYCLING THE BOXES WON'T BE EASY THERE ARE FEWER THAN 10 FACILITIES THAT CAN RECYCLE DRINK BOXES OPERATING IN THE US AND MANY OF THEM ALSO DEPEND ON MILK CARTONS WHICH CONTAIN POLYURETHANE BUT NOT ALUMINUM FOR SUFFICIENT VOLUME THE RECYCLING PLANTS USE A MODIFIED HYDRAPULPING PROCESS THAT CHURNS THE BOXES IN A BLENDERLIKE MILL SCREENS THEN SIFT OUT THE BOXES' NONPAPER ELEMENTS AN ASEPTIC PACKAGE MADE IN LAYERS IS ABOUT 24 POLYURETHANE AND 6 ALUMINUM EXCLUDING PLASTIC STRAWS AND SHRINK WRAPS THE DERIVED PAPER PULP GOES INTO TISSUES PAPER AND OTHER PAPER PRODUCTS THE ALUMINUM CAN BE RECYCLED WHILE THE POLYURETHANE CAN BE USED IN WASTETOENERGY FACILITIES BUT OFTEN GOES TO A LANDFILL WENDY GORDON PROGRAM DIRECTOR FOR MOTHERS AND OTHERS FOR A LIVABLE PLANET AN OFFSHOOT OF THE NATURAL RESOURCES DEFENSE COUNCIL SAYS SHE WAS SURPRISED TO LEARN THAT THE NEAREST ASEPTIC PACKAGE RECYCLING FACILITY IS IN SOUTH GLENS FALLS NY TWO STATES AWAY FROM MAINE THE ASEPTICPACKAGE INDUSTRY SAID IT IS INTERESTED IN PUTTING A FACILITY IN MAINE BUT HAS MADE NO COMMITMENTS THE MANUFACTURERS' CAMPAIGN WON SOME KEY CONVERTS WE CALLED INDUSTRY REPRESENTATIVES LAST FALL TO SAY WE HAD CHANGED OUR TUNE ON ASEPTIC PACKAGING AND WERE NO LONGER AGAINST IT SAYS MS GORDON WE WANTED TO WORK WITH THEM TO IMPROVE THEIR RECYCLING EFFORTS OUR OPPOSITION WAS PARTLY A RESULT OF THE BELIEF THAT THERE WAS AN INABILITY TO RECYCLE ASEPTIC PACKAGES TED CARTER A FIRSTGRADE TEACHER IN ALEXANDER MAINE WAS AMAZED AT HOW WELL THE BAN HAD WORKED WHEN IT WAS ENACTED HIS 10 STUDENTS WHO OTHERWISE MAY HAVE THROWN AWAY ABOUT 1700 DRINK BOXES A YEAR BEGAN ARRIVING AT SCHOOL WITH THERMOS BOTTLES IN THEIR LUNCH BOXES THIS WAS A LAW THAT WORKED SAYS MR CARTER A PRODUCT WAS MEANT TO BE REMOVED FROM THE WASTE STREAM AND IT WAS OVERNIGHT LAST YEAR HE DROVE FIVE HOURS TO TESTIFY ON ITS BEHALF AT A STATE HEARING BUT MR CARTER CONCEDES OTHER DUTIES OVERTOOK MUCH OF HIS ZEAL FOR THE BAN AND BILL BREEN MANAGING EDITOR OF GARBAGE MAGAZINE BELIEVES ENTHUSIASM FOR THE BAN DISSIPATED WHEN PEOPLE DISCOVERED HOW TINY A PART THE DRINK BOX PLAYED IN THE WASTE STREAM THE ASEPTIC PACKAGING COUNCIL SAYS MORE THAN THREE MILLION HOUSEHOLDS AND 1800 SCHOOLS RECYCLE THE BOXES AND ADDS THAT IT GETS MANY CALLS FROM SCHOOLS INTERESTED IN DOING SO AS A RESULT OF THE REPEAL MAINE DOESN'T REQUIRE THAT DRINK BOXES BE RECYCLED THE CONTAINERS AREN'T COVERED BY ITS STRICT BOTTLERETURN LAW HOWEVER THE INDUSTRY HAS AGREED TO PROMOTE RECYCLING PROGRAMS AND HAS PROMISED TO HIRE A STATE RECYCLING COORDINATOR 9404070061 940407 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO WOMEN'S GROUPS CONSIDER A PLAN TO OVERTURN SEXBASED DISABILITY RATES ANGERED BY INSURERS' RECENT MOVE TO END UNISEX RATES FOR INDIVIDUAL DISABILITYINCOME POLICIES THE NOW LEGAL DEFENSE AND EDUCATION FUND WEIGHS A STRATEGY PURSUED FOR 19 YEARS IN MARYLAND THERE THE FUND BACKS EFFORTS BY MARYLAND'S COMMISSION ON HUMAN RELATIONS TO SHOW THAT EQUITABLE LIFE ASSURANCE SOCIETY VIOLATES THE STATE'S EQUALRIGHTS AMENDMENT WITH GENDERSPECIFIC RATES FOR DISABILITY AND LIFE INSURANCE THE CASE FINALLY REACHED MARYLAND'S HIGHEST COURT IN NOVEMBER A RULING IS PENDING IF THE FUND WINS WE'LL REPLICATE THE STRATEGY TO COMBAT THE REVIVAL OF GENDERSPECIFIC RATES IN THE 15 OTHER ERA STATES SAYS LAWYER MARTHA DAVIS SEVERAL MAJOR INSURERS' RETURN TO GENDERSPECIFIC DISABILITY RATES AFTER NEARLY A DECADE BOOSTS PRICES FOR FEMALES BECAUSE INSURERS SAY WOMEN HAVE A HIGHER CLAIMS RECORD INSURERS SAY THEY UNDERESTIMATED THE NUMBER OF WOMEN BUYING THE DISABILITY POLICIES REDUCING PROFITABILITY HOWTO TAPES FINALLY CATCH THE EYE OF VIDEO STORES THE BURGEONING BUSINESS OF SPECIALINTEREST VIDEOS WITH TOPICS RANGING FROM HOMEIMPROVEMENT TO KNOTTING A TIE APPEALS TO VIDEO STORES SEEKING TO AUGMENT THEIR MOVIERENTAL BUSINESS THE VIDEO SOFTWARE DEALERS ASSOCIATION ENCINO CALIF PLANS TO OFFER TAPED CATALOGS OF HOWTO VIDEOS THAT STORES THEN CAN LEND TO CUSTOMERS EACH TAPED CATALOG ON A SPECIFIC SUBJECT WOULD FEATURE CLIPS FROM RELATED HOWTO VIDEOS CUSTOMERS CAN ORDER INDIVIDUAL TITLES VIA AN 800 NUMBER AND THE STORES GET A CUT OF THE SALE IN THE PAST VIDEO STORES BALKED AT STOCKING SPECIALINTEREST TAPES EXCEPT FOR EXERCISE AND SPORTS VIDEOS THEY DON'T KNOW WHAT A CUSTOMER WOULD WANT SAYS BRAD BURNSIDE OF VIDEO ADVENTURE IN ILLINOIS SALES OF HOWTO TAPES MOSTLY VIA DIRECTRESPONSE MEDIA AND RETAIL STORES WILL RISE 9 TO 925 MILLION IN 1994 WHILE MOVIE VIDEO RENTALS WILL BE FLAT AT 10 BILLION SAYS CONSULTANTS CAMBRIDGE ASSOCIATES STAMFORD CONN NIXING MIXUPS DEVICES AND SYSTEMS HEIGHTEN SECURITY OF EMPLOYEE DRUG TESTS THE SOCALLED CHAIN OF CUSTODY FOR URINE SAMPLES USED IN DRUG TESTS HAS BECOME MORE SECURE IN RECENT YEARS EVEN AS TESTS PROLIFERATE SAYS THE INSTITUTE FOR A DRUGFREE WORKPLACE A WASHINGTON BUSINESS COALITION EMPLOYERS INCREASINGLY USE ONLY GOVERNMENTAPPROVED LABORATORIES TO PROCESS TESTS BUILTIN THERMOMETERS IN COLLECTION CONTAINERS DETECT OLD OR WATEREDDOWN SAMPLES BARCODES ELIMINATE THE NEED TO TAG SAMPLES WITH WORKERS' NAMES MAKING TAMPERING LESS LIKELY A SMITHKLINE BEECHAM PLC UNIT RECENTLY UNVEILED A DEVICE THAT SPLITS A SAMPLE INTO TWO PARTS WITHOUT THE NEED FOR A SECOND CONTAINER OR FOR HUMAN HANDLING DURING PROCESSING SPLIT SAMPLES ALLOW FOR RETESTING OF THE SAME SPECIMEN IF THE FIRST RESULT IS CHALLENGED SAYS SMITHKLINE'S MICHAEL MCNULTY STILL MANY EMPLOYERS FEAR LAWSUITS OVER DRUGTEST RESULTS SAYS ROBERT STRANG A NEW YORK CONSULTANT AS THE USE OF DRUG TESTS SPREADS THE COST TO FIRMS HAS FALLEN 20 IN THE PAST FIVE YEARS SAYS THE WASHINGTON GROUP RECRUITING VIA VIDEO OFFICIALS FROM PICTURETEL INC IN DANVERS MASS MADE A PITCH TO JOBHUNTING STUDENTS AT RENSSELAER POLYTECHNIC IN TROY NY USING THE SCHOOL'S INTERACTIVEVIDEO NETWORK RENSSELAER PLANS TO OFFER THE SERVICE TO OTHER COMPANIES THAT MIGHT NOT OTHERWISE SEND RECRUITERS TO CAMPUS AMERICANS ATE OUT SIMPLY BUT WITH RENEWED GUSTO IN '93 SAYS THE FOOD INSTITUTE IN NEW JERSEY SALES AT BARS AND EATERIES BASED ON CENSUS BUREAU FIGURES ROSE 54 TO 2127 BILLION VS 25 IN '92 AND 31 IN '91 IN SAVING FOR RETIREMENT YOUNGER AMERICANS ARE STARTING EARLIER THAN THEIR ELDERS AN EMPLOYEE BENEFIT RESEARCH INSTITUTE SURVEY SAYS 23 IS THE MEDIAN AGE NAMED BY 18 TO 34YEAROLDS WHO WERE ASKED WHEN THEY BEGAN TO SAVE FOR RETIREMENT THE MEDIAN IS 30 FOR THOSE AGED 3554 AND 42 FOR THOSE 55 AND OLDER BIGGER PACKAGES HELP SUPERMARKETS COMPETE BUT WITH VARYING SUCCESS MORE SUPERMARKETS ARE SEEKING TO BLUNT WAREHOUSECLUB COMPETITION FOR VALUEMINDED SHOPPERS BY SELLING GIANT PACKS THEMSELVES KROGER CO CINCINNATI SETS UP WAREHOUSE VALUES SECTIONS IN NEWER STORES PROTOTYPE STORES OF ACME MARKETS INC MALVERN PA HOLD THREE AISLES OF CLUBSIZED GOODS INSTEAD OF THE USUAL ONE BUT PRICE CHOPPER SCHENECTADY NY PREFERS TO COMPETE BY OFFERING NORMALSIZE PACKAGES BUNDLED TOGETHER AT LOWER PRICES IT HAS FOUND FOR EXAMPLE THAT WOMEN SHOPPERS DON'T WANT TO DEAL WITH HUGE DETERGENT PACKAGES SAYS JOANNE GAGE VICE PRESIDENT A&P WHICH HAS WAREHOUSE AISLES IN MANY STORES DOESN'T PLAN TO EXPAND THIS PROGRAM SAYING THAT WEEKLY PROMOS AND BONUS SAVINGS CLUBS ARE AS EFFECTIVE JUMBO ITEMS STILL MAKE UP A SMALL MINORITY USUALLY ABOUT 200 OF THE 15000 OR SO ITEMS IN AN AVERAGE STORE SAYS JAMES DEGEN A CALIFORNIA CONSULTANT PAPER GOODS ARE POPULAR IN JUMBO PACKS SLOW SELLERS PACKAGES OF 48 POP TARTS REPORTS A KROGER OFFICIAL BRIEFS FOR THE BIRDS ON APRIL 20 AIRLINE KIWI INTERNATIONAL WILL OFFER 50OFF COUPONS TO RIDERS DRESSED AS A KIWI BIRD THE PROMOTION MARKS THE CARRIER'S ONEMILLIONTH PASSENGER HOPING SHAREHOLDERS WILL FIND IT A TREAT ESKIMO PIE CORP SERVES UP ITS 1993 ANNUAL REPORT IN THE SHAPE OF AN ICE CREAM BAR COMPLETE WITH STICK 9404070060 940407 HIGH OFFICE LOW PAY BY MICHAEL J AHEARN WHY DO BASEBALL PLAYERS EARN MILLIONS OF DOLLARS A YEAR FOR THEIR NEGLIGIBLE CONTRIBUTION TO SOCIETY WHILE THE MAJOR CONTRIBUTORS SUCH AS SCHOOLTEACHERS POLICEMEN FIREMEN AND AMBULANCE DRIVERS EARN BARELY ENOUGH TO SURVIVE THIS IS NOT A NEW THEME THERE IS THE FAMOUS STORY ABOUT BABE RUTH BEING TOLD BY A SPORTSWRITER THAT HE EARNED MORE MONEY THAN THE PRESIDENT OF THE UNITED STATES WHEN THE BABE WAS ASKED TO COMMENT ON THIS PERPLEXING CIRCUMSTANCE HE SAID I KNOW BUT I HAD A BETTER YEAR THAN HOOVER THE BABE WAS FAR AHEAD OF HIS TIME AND NOT JUST ON THE BASEBALL DIAMOND WHO WOULD HAVE GUESSED THAT RELATING PAY TO PERFORMANCE WOULD BECOME A HOT TOPIC IN THE BUSINESS WORLD ALTHOUGH THE IDEA HAS TAKEN HOLD IN THE EXECUTIVE SUITE ITS ADHERENTS HAVE NOT YET TURNED THEIR ATTENTION TO THE CHIEF EXECUTIVE SUITE ALSO KNOWN AS THE OVAL OFFICE NOR HAVE THEY NOTED THAT THE LOWESTPAID PRESIDENT IN US HISTORY IS WILLIAM JEFFERSON CLINTON BEFORE WE IDLY SPECULATE ON WHETHER OR NOT THIS DISTINCTION AMONG CHIEF EXECUTIVES IS WARRANTED LET'S LOOK AT THE HISTORICAL INCOME DATA ASSOCIATED WITH THIS HIGH OFFICE THROUGH THE YEARS THE PRESIDENT'S BASE PAY HAS BEEN CHANGED ONLY FOUR TIMES WHEN GEORGE WASHINGTON ENTERED OFFICE IN 1789 HE EARNED THE PRINCELY ANNUAL SUM OF 25000 EQUIVALENT TO 550000 IN TODAY'S DOLLARS IT TOOK 84 YEARS FOR CONGRESS TO INSTITUTE A PAY RAISE IN 1873 AT THE START OF ULYSSES S GRANT'S SECOND TERM HIS SALARY DOUBLED TO 50000 AFTER ACCOUNTING FOR INFLATION THIS AMOUNT WOULD BE WORTH 780000 TODAY IT TOOK ANOTHER 36 YEARS FOR CONGRESS TO RAISE THE PRESIDENT'S PAY THIS TIME TO 75000 PLUS AN EXPENSE ACCOUNT WILLIAM HOWARD TAFT ENTERED OFFICE IN 1909 EARNING 25000 MORE THAN HIS PREDECESSOR IN BASE PAY IN ADDITION TO A 25000 TRAVEL ALLOWANCE WITH THIS HIGHER COMPENSATION TAFT WAS EARNING THE EQUIVALENT OF 15 MILLION IN 1993 DOLLARS THE THIRD PRESIDENTIAL SALARY INCREASE OCCURRED 40 YEARS LATER IN 1949 WHEN HARRY TRUMAN WAS ELECTED TO A FULL TERM IN OFFICE EARNING 100000 A YEAR HE WAS THE FIRST PRESIDENT TO RECEIVE A 50000 LIVING ALLOWANCE AS WELL AS A MORE GENEROUS 40000 TRAVEL ALLOWANCE BUT DUE TO TAXES AND THE EFFECTS OF CUMULATIVE INFLATION SINCE THE PREVIOUS RAISE GIVE 'EM HELL HARRY WAS STILL EARNING THE EQUIVALENT OF ONLY 450000 ANNUALLY WHEN RICHARD NIXON TOOK OFFICE IN 1969 20 YEARS LATER THE CHIEF EXECUTIVE'S SALARY DOUBLED TO 200000 IT HAS REMAINED AT THAT LEVEL EVER SINCE HOWEVER HIS AFTERTAX INCOME INCLUDING EXPENSES WAS WORTH ABOUT 475000 IN 1993 DOLLARS WHILE POOR BILL CLINTON NOW EARNS ONLY 190000 AFTERTAX THE ACCOMPANYING CHART SHOWS THE HISTORY OF PRESIDENTIAL COMPENSATION ON AN AFTERTAX BASIS AND AFTER ADJUSTING FOR INFLATION SEE ACCOMPANYING ILLUSTRATION WSJ APRIL 7 1994 MEASURED IN 1993 DOLLARS WILLIAM HOWARD TAFT EARNED THE HIGHEST TAKEHOME PAY ABOUT 15 MILLION GIVEN HIS GIRTH THIS SUGGESTS THAT THE US MAY BE PAYING ITS PRESIDENTS BY THE POUND PERHAPS ON THE ASSUMPTION THAT THE WEIGHT OF RESPONSIBILITY THAT ONE SHOULDERS IS COMMENSURATE WITH THE WEIGHT SUPPORTED BY ONE'S FEET INTERESTINGLY JAMES MADISON THE TINIEST PRESIDENT IN US HISTORY EARNED ONLY ABOUT 300000 IN TODAY'S DOLLARS IF PRESIDENTIAL PAY IS INDEED DIRECTLY RELATED TO WEIGHT BILL CLINTON SHOULD BE ENCOURAGED TO FREQUENT MCDONALD'S MORE OFTEN AND TO JOG LESS OFTEN THE TRENDS SHOWN IN THE GRAPH ALLOW US TO MAKE PROJECTIONS THE PRESIDENT'S PAY HAS FALLEN BY 63 IN REAL TERMS SINCE 1969 IF THIS DECLINE CONTINUES AT THE SAME RATE FOR ANOTHER 24 YEARS PRESIDENTIAL COMPENSATION WOULD BE WORTH ONLY 70000 IN TODAY'S TERMS KEEP IN MIND HOWEVER THAT THIS IS STILL TWICE THE 35000 SALARY NOW EARNED BY THE GOVERNOR OF ARKANSAS IN VIEW OF THE POPULARITY OF PAYTOPERFORMANCE SALARIES IN THE EXECUTIVE SUITES OF MAJOR COMPANIES IT IS WORTH EXAMINING WHETHER OUR CHIEF EXECUTIVES HAVE PERFORMED IN A MANNER COMMENSURATE WITH THEIR PAY ADMITTEDLY PRESIDENT CLINTON HAS HIS CRITICS THEY THINK IT ONLY FITTING THAT HE EARN THE LOWEST REAL INCOME OF ANY PRESIDENT TO DATE MAYBE THE CRITICS HAVE IT BACKWARD AND WE'RE GETTING EXACTLY WHAT WE PAID FOR RECALL THAT THE PRESIDENT'S PAY IS PRESET BY CONGRESS THUS IT ISN'T PAYTOPERFORMANCE STUPID IT'S PERFORMANCETOPAY WHO THEN WOULD SEEK THE OVAL OFFICE WHEN IT PAYS SO LITTLE ESPECIALLY FROM A HISTORICAL PERSPECTIVE IF THE PAST 20 YEARS ARE ANY GUIDE COUNT ON A RETIRED BMOVIE ACTOR A PATRICIAN A SMALLSTATE GOVERNOR AND A BILLIONAIRE WHO EARNS 190000 IN MUNICIPAL BOND INTEREST AN AVERAGE OF THREE TIMES A DAY BUT IF THE JOB PAID BETTER MAYBE WE COULD ATTRACT HIGHERCALIBER CANDIDATES SUCH AS ATHLETES AND TV STARS MR AHEARN IS AN ECONOMIST IN CAMBRIDGE MASS AS IS PAUL E GREENBERG WHO CONTRIBUTED TO THIS ARTICLE 9404070058 940407 BUSINESS BRIEF FROZEN FOOD EXPRESS INDUSTRIES INC FIRM EXPECTS PROFIT TO RISE AT LEAST 20 FOR 1ST QUARTER FROZEN FOOD EXPRESS INDUSTRIES INC SAID IT EXPECTS TO REPORT FIRSTQUARTER NET INCOME AT LEAST 20 HIGHER THAN THE 13 MILLION OR 10 CENTS A SHARE REPORTED FOR THE YEAREARLIER QUARTER THE DALLAS TRUCKING COMPANY SAID INVESTORS' CONCERNS THAT RECENT BAD WEATHER IN SOME PARTS OF THE COUNTRY MAY HURT FROZEN FOOD'S FIRSTQUARTER RESULTS ARE UNFOUNDED WE EXPECT OUR 1994 FIRST QUARTER TO BE THE BEST FIRST QUARTER WE'VE EVER HAD IN 48 YEARS OF BUSINESS BOTH ON THE REVENUE LINE AND THE NET INCOME LINE SAID STONEY M STUBBS CHAIRMAN FOR THE 1993 QUARTER THE COMPANY HAD REVENUE OF 49 MILLION 9404070057 940407 INTERNATIONAL BERLUSCONI MAY FORCE REELECTION TO CLEAR HURDLE TO GOVERNING ROME REUTER MEDIA MAGNATE SILVIO BERLUSCONI'S FORZA ITALIA PARTY THREATENED YESTERDAY TO FORCE ANOTHER GENERAL ELECTION IF FEDERALIST LEADER UMBERTO BOSSI PERSISTED IN BLOCKING TALKS ON FORMATION OF A NEW GOVERNMENT IF UMBERTO BOSSI BETRAYS THE POPULAR WILL ONCE MORE IMPEDING THE FORMATION OF A GOVERNMENT THAT GOVERNS THERE WILL BE NO ALTERNATIVE BUT TO RETURN TO THE BALLOT BOX THE PARTY SAID IN A STATEMENT FORZA ITALIA THE PARTY SET UP BY BILLIONAIRE MR BERLUSCONI ON HIS ENTRY INTO POLITICS LESS THAN THREE MONTHS AGO SAID THE ELECTORATE WOULD BE SURE TO PUNISH MR BOSSI IT WILL BE LEFT TO THE VOTERS TO WIPE OUT THE OLDSTYLE POLITICS SO DEAR TO THE HONORABLE BOSSI THE STATEMENT ADDED MR BERLUSCONI TUESDAY BROKE OFF GOVERNMENT TALKS WITH NORTHERN LEAGUE LEADER MR BOSSI HIS ALLY IN THE FREEDOM ALLIANCE THAT EMERGED TRIUMPHANT IN GENERAL ELECTIONS LAST WEEK AFTER MR BOSSI DELIVERED ULTIMATUMS ON FEDERALISM AND THE PREMIERSHIP FORZA ITALIA ACCUSED MR BOSSI OF CHANGING HIS IDEAS BY THE DAY AND BETRAYING THE WISHES OF VOTERS MR BOSSI PUSHING FOR COMMITMENT TO FEDERALISM AS THE PRICE FOR HIS SUPPORT ARGUES THAT HIS LEAGUE IS THE BIGGEST PARTY IN THE FREEDOM ALLIANCE WITH SOME 120 OF ITS 366 SEATS IN THE 630MEMBER CHAMBER OF DEPUTIES LOWER HOUSE 9404070056 940407 BAUSCH & LOMB UNIT SETTLES HARRISBURG PA DAHLBERG INC THE NATION'S THIRDLARGEST HEARING AID MANUFACTURER HAS AGREED TO PAY A TOTAL OF 700000 TO 15 STATES TO SETTLE CHARGES IT USED DECEPTIVE ADVERTISING TO SELL ITS MIRACLE EAR DEVICE DAHLBERG GOLDEN VALLEY MINN AND A GROUP OF STATE ATTORNEYS GENERAL SAID A VOLUNTARY COMPLIANCE AGREEMENT HAD BEEN REACHED THE FIRM WHICH DID NOT ACKNOWLEDGE ANY WRONGDOING AGREED TO CHANGE ITS ADS AND MAKE DISCLOSURES ABOUT THE LIMITATIONS OF ITS PRODUCT DAHLBERG A SUBSIDIARY OF BAUSCH & LOMB INC ROCHESTER NY SAID IT SOUGHT TO RESOLVE THE MATTER TO AVOID COSTLY LITIGATION OVER AN OLD AD CAMPAIGN THE ADS RAN NATIONALLY UNTIL 1993 WHEN THE US FOOD AND DRUG ADMINISTRATION ORDERED THE COMPANY TO STOP THE CAMPAIGN 9404070055 940407 FORMER BANK OFFICIAL AT UNITED SECURITY FACES TAX CHARGES FRESNO CALIF THE FORMER PRESIDENT OF UNITED SECURITY BANK WAS INDICTED BY A FEDERAL GRAND JURY FOR THE ATTEMPTED EVASION OF MORE THAN 2 MILLION IN BACK INCOME TAXES OWED BY A FRESNO BUSINESSMAN PHILIP CROUSE RESIGNED AS PRESIDENT OF UNITED SECURITY BANK LAST FALL CITING PERSONAL REASONS THE INDICTMENT AGAINST MR CROUSE BROUGHT BY THE US ATTORNEY FOR THE EASTERN DISTRICT OF CALIFORNIA ALLEGES ONE FELONY CONSPIRACY COUNT AND SIX FELONY COUNTS FOR ALLEGEDLY INTEFERING WITH THE ADMINISTRATION OF THE INTERNAL REVENUE SERVICE CODE CATHY CONNELL FORMERLY A VICE PRESIDENT AT THE UNITED SECURITY BANK AND JOHN MCCARTY THE FRESNO BUSINESSMAN ALSO WERE INDICTED ON MULTIPLE FELONY COUNTS NEITHER MS CONNELL NOR MESSRS CROUSE OR MCCARTY COULD BE REACHED FOR COMMENT THE ALLEGED ILLEGALITIES FOLLOWED MR MCCARTY'S DECISION IN AUGUST 1990 TO PLEAD GUILTY TO TWO COUNTS OF TAX EVASION WHEN MESSRS MCCARTY AND CROUSE ALLEGEDLY CONCEALED MR MCCARTY'S OWNERSHIP OF 2500 SHARES IN UNITED SECURITY ACCORDING TO A STATEMENT BY CHARLES J STEVENS US ATTORNEY 9404070054 940407 LETTERS TO THE EDITOR STRONG BOND BETWEEN HUNTER AND DOG REGARDING YOUR MARCH 2 ARTICLE A DOG'S LIFE MAN'S BEST FRIEND CAN FIND HUNTING SEASON A TRIAL THERE IS NO QUESTION THAT HUNTERS LIKE OTHER PET OWNERS DO LOSE DOGS IF HUNTERS FAIL AT A HIGHER RATE TO RECOVER THEIR DOGS THEN THEY ARE CERTAINLY TO BE BLAMED FOR NOT ATTACHING PROPER IDENTIFICATION TO THEIR DOGS' COLLARS HOWEVER THE PERCENTAGE OF DOGS EVEN FIRSTTIME HUNTERS THAT ARE SCARED OFF BY GUNFIRE OR EVEN BOTHERED BY THE SOUND OF SHOTS IS EXTREMELY LOW PROBABLY LESS THAN 2 OR 3 THE NUMBER OF HUNTING DOGS THAT ARE INDIFFERENT TO THE SPORT IS EVEN LOWER RAISING THE QUESTION OF EXACTLY WHAT CRITERIA ANIMALSHELTER WORKERS USE TO DETERMINE WHETHER A LOST DOG IS IN FACT A HUNTER TOM COLVIN'S CLAIM THAT THE NUMBER OF HUNTING DOGS TURNING UP AT THE LEAGUE'S SHELTER IS AN INDICATION THAT HUNTERS FEEL THEY CAN GET A REPLACEMENT DOG PRETTY EASILY EXPOSES IGNORANCE ABOUT BOTH THE RELATIONSHIP BETWEEN HUNTERS AND DOGS AND THE VALUE OF TRAINED HUNTING DOGS MY FAMILY OWNS SEVEN HUNTING DOGS OF VARIOUS BREEDS OUR INVESTMENT IN EACH DOG OF SEVERAL THOUSAND DOLLARS IN PURCHASE PRICE AND TRAINING FEES WOULD BE ENOUGH TO PRECLUDE SUCH A CASUAL ATTITUDE TOWARD REPLACING THE DOGS EVEN IF WE HAD NO EMOTIONAL TIES WITH THEM WE LIKE THE MAJORITY OF HUNTERS ARE ATTACHED TO OUR DOGS WE HAVE RAISED MOST OF THEM FROM PUPPIES SHARED MANY CHERISHED HOURS AFIELD WITH THEM AND IN SEVERAL CASES LIVED WITH THEM TO SAY THAT A DOG SUCH AS DUKE IS PROBABLY NOT A GOOD HUNTER BECAUSE HE IS TOO PERSONABLE OR SHY OR THAT HUNTING DOGS NEVER SOCIALIZE WITH HUMANS IS AT BEST UNINFORMED FINALLY AS I WRITE THIS AN EIGHTYEAROLD ENGLISH SETTER LIES FIVE FEET BEHIND ME ON THE CARPET MY FATHER ONCE LOST HER NOT BECAUSE SHE IS NOT A GOOD HUNTER BUT BECAUSE IN HER EXCITEMENT OVER SOME BOBWHITE QUAIL SHE DISAPPEARED IN THICK BRUSH DESPITE HOURS OF SEARCHING ON THE PART OF MY FATHER THE NEXT DAY ANOTHER QUAIL HUNTER PICKED HER UP ON THE SIDE OF A NEARBY ROAD AND CALLED THE PHONE NUMBER ON HER COLLAR WE PICKED HER UP THAT DAY HUNTERS OR OTHER DOG OWNERS WHO FAIL TO ATTACH PROPER IDENTIFICATION TO THEIR DOGS' COLLARS ARE INDEED NEGLIGENT AND DESERVE SOME REPROACH HOWEVER YOUR ARTICLE IS TYPICAL OF THE MINDLESS CRITICISM OF HUNTERS IN WHICH TOO MANY IGNORANT PEOPLE ENGAGE MANY HUNTERS WARRANT CRITICISM BUT NO MORE THAN MANY OTHER GROUPS EXTREMELY FEW DOGS RUN OFF BECAUSE THEY ARE GUNSHY EVEN FEWER DOGS WANDER OFF BECAUSE THEY ARE INDIFFERENT TO THE SPORT NEARLY ALL HUNTING DOGS ABSOLUTELY LOVE WHAT THEY DO THE VAST MAJORITY OF HUNTERS ASSUME THEIR DOGS GOT LOST IN THE PURSUIT OF GAME AND MAKE CONSIDERABLE EFFORTS TO RELOCATE THEM ACTUALLY WHAT MOST HUNTERS DO IS RETURN TO THE AREA WHERE THE DOG WAS LOST SEARCH FOR HIM CONTACT ALL THE NEIGHBORS IN THAT AREA AND REPORT THE DOG LOST AND RUN ADS IN THE LOCAL NEWSPAPER FOR EXAMPLE LAST YEAR WE DROVE 400 MILES TO PICK UP A DOG LOST WHILE WE WERE HUNTING IN ANOTHER STATE CONTRARY TO STATEMENTS IN THE ARTICLE IT IS VERY DIFFICULT TO REPLACE A TRAINED HUNTING DOG FINALLY A GREAT MANY HUNTING DOGS ARE ALSO EXCELLENT PETS A HUMANE SOCIETY OFFICIAL OPINED IN THE ARTICLE THAT A RETRIEVER WAS PROBABLY NOT A GOOD HUNTER BECAUSE THE DOG WAS A LITTLE SHY LIKED BLANKETS PLAYED GAMES AND LOVED HAVING HIS STOMACH SCRATCHED THE BEST HUNTING RETRIEVER I EVER OWNED FIT THAT DESCRIPTION PRECISELY 9404070053 940407 BUSINESS BRIEF US HOME CORP NET INCOME FOR FIRST QUARTER IS SEEN EXCEEDING ESTIMATES US HOME CORP'S NET INCOME FOR THE FIRST QUARTER SHOULD BE BETWEEN 67 MILLION AND 7 MILLION BETTER THAN ANALYSTS' ESTIMATES ROBERT J STRUDLER THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE SAID FOR THE YEARAGO QUARTER THE HOME BUILDER EARNED 5 MILLION OR 11 CENTS A SHARE AFTER A ONETIME PRETAX CHARGE OF 29 MILLION THE COMPANY ALSO SAID IT EXPECTS FIRSTQUARTER OPERATING EARNINGS TO BE BETWEEN 11 MILLION AND 115 MILLION ABOUT A 35 INCREASE FROM 82 MILLION A YEAR AGO DESPITE THE VOLATILE INTERESTRATE MARKET IN FEBRUARY AND MARCH US HOME WHICH EMERGED FROM BANKRUPTCYLAW PROTECTION LAST YEAR SAW NEW ORDERS INCREASE 8 IN THE FIRST QUARTER TO 2340 HOMES FROM 2163 HOMES A YEAR EARLIER MR STRUDLER SAID IN AN INTERVIEW 9404070052 940407 THE FUGITIVE THAT'S CHEEK CEO WHO VANISHED IS HELD IN A SCAM ON THE LAM EXWALL STREET FAVORITE SAID TO HAVE STARTED NEW LIFE AS GEORGIA EMBEZZLER A GOOD FRIEND AND NEIGHBOR BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL EAST ELLIJAY GA AFTER THE CHARMING FUGITIVE WHO HAD LIVED IN THEIR MIDST WAS ARRESTED AND UNMASKED LAST WEEKEND SOME PEOPLE HERE WONDERED WHETHER THEY SHOULDN'T HAVE HAD SUSPICIONS ABOUT HIM EARLIER THE 43YEAROLD MAN WHO WENT BY THE NAME PAUL FENWICK AND WORE A FUZZY BEARD LIVED IN A SPECTACULAR AND SECLUDED PINELOG HOME ATOP TALOMA MOUNTAIN HERE FROM WHICH HE COULD SURVEY THE BLUE RIDGE RANGE FOR MILES AROUND THE WINDOWS OF HIS JEEP AND OF HIS GARAGE WERE TINTED BLACK WHEN VISITORS ASKED WHY HE KEPT THREE COMPUTERS IN THREE DIFFERENT ROOMS HE TOLD THEM HE WORKED SECRETLY AS NOVELIST TOM CLANCY'S GHOSTWRITER AND HE LIKED TO MOVE FROM ROOM TO ROOM TO ASSUME DIFFERENT CHARACTERS AS HE WROTE HE DEFLECTED INQUIRIES ABOUT HIS PAST BY EXPLAINING THAT HE HAD BEEN A CENTRAL INTELLIGENCE AGENCY OPERATIVE IN SOUTHEAST ASIA BUT MR FENWICK WAS SO EXTRAVAGANTLY FRIENDLY HARDWORKING AND HELPFUL TO HIS NEIGHBORS AFTER SETTLING HERE IN 1991 THAT TOWNSPEOPLE OVERLOOKED THESE CURIOSITIES AS THE QUIRKS OF A BRILLIANT MAN THEY WERE SHOCKED WHEN THEY SAY HE RAN OFF WITH THEIR MONEY AND EVEN MORE SHOCKED WHEN FBI AGENTS IDENTIFIED HIM AS MALCOLM CHEEK FORMER CHIEF EXECUTIVE OFFICER OF Y&A GROUP INC A MAN WHO HAD MADE HIS COMPANY ONE OF THE HOTTEST STOCKS ON WALL STREET AND THEN VANISHED FROM A ROOM AT THE GRAND HYATT HOTEL IN MANHATTAN ON MARCH 4 1991 LEAVING HIS RAZOR BUT TAKING HIS WALLET AND BRIEFCASE HE WAS JUST TOO HELPFUL SAYS LOUISE LEE WHOSE LOGHOME COMPANY BUILT MR CHEEK'S MOUNTAINTOP HOME INSTEAD OF PAYING HER THE LAST 19000 DUE ON THE CONSTRUCTION SHE SAYS HE VOLUNTEERED TO BE A BUSINESS CONSULTANT FOR HER HANDLING HER BOOKS AND BANKING IN TIME THE TWO STARTED DATING AND THE BEARDED NEWCOMER SENT HER A DOZEN RED ROSES EVERY THREE WEEKS MS LEE DIDN'T KNOW HE WAS MARRIED UNTIL AGENTS OF THE FEDERAL BUREAU OF INVESTIGATION TOLD HER THREE WEEKS AGO HE WAS TOO GOOD TO BE TRUE SHE SAYS WALL STREET HAD BEEN SIMILARLY CHARMED BY MR CHEEK WHEN HE RAN Y&A AN ENGINEERING CONSULTING FIRM WITH 150 EMPLOYEES BASED IN THE ST LOUIS SUBURB OF CREVE COEUR MO Y&A WENT PUBLIC IN JUNE 1989 AND BECAME A FAVORED ISSUE ON THE NASDAQ STOCK MARKET MR CHEEK WAS AN ENERGETIC PUBLICIST WHO SPOKE TO FINANCIAL ANALYSTS OF PLANS FOR GLOBAL EXPANSION HE CALLED HIMSELF A FINANCIAL EXPERT ALTHOUGH HIS MAIN ACADEMIC CREDENTIAL WAS A MAILORDER BACHELOR OF BUSINESS DEGREE FROM A PRIVATE UNIVERSITY IN NEW YORK AT ITS PEAK A FEW MONTHS BEFORE MR CHEEK VANISHED Y&A STOCK TRADED AS HIGH AS 42 A SHARE BUT ON THE SAME DAY THAT IT ANNOUNCED MR CHEEK'S DISAPPEARANCE Y&A DISCLOSED THAT IT EXPECTED A NET LOSS OF ABOUT 7 MILLION FOR 1990 THE TWIN REVELATIONS SENT THE STOCK PLUNGING 66 IN A SINGLE DAY'S TRADING THE STOCK WAS LATER DELISTED AND THE COMPANY EVENTUALLY WENT OUT OF BUSINESS AMONG THE WOUNDED INVESTORS WERE BIG WALL STREET INVESTMENT HOUSES AND PROMINENT MEMBERS OF ST LOUIS SOCIETY MORE THAN 1300 INVESTORS FILED CLAIMS FOR COMBINED LOSSES EXCEEDING 25 MILLION Y&A'S OUTSIDE DIRECTORS SETTLED IN A CLASSACTION LAWSUIT AS FOR THE STOCKY DARKHAIRED MR CHEEK SPECULATION AT THE TIME WAS RAMPANT ABOUT WHETHER HE HAD BEEN MURDERED OR KIDNAPPED HAD FLED TO AUSTRALIA HIS PARENTS' BIRTHPLACE OR HAD SUCCUMBED TO HIS HEART CONDITION SCANT WEEKS AFTER MR CHEEK WAS REPORTED MISSING IN MANHATTAN HE ARRIVED HERE IN GEORGIA PAYING FOR CONSTRUCTION WORK ON HIS FIRST HOUSE IN THE TOWN OF CHERRY LOG IN 50 AND 100 BILLS ACCORDING TO JOHN FERRIS WHO DID THE WORK HE ASSUMED THE NAME AND CREDIT HISTORY OF PAUL FENWICK A DISTANT RELATIVE BY MARRIAGE AUTHORITIES SAY IF YOU GO ACROSS THE COUNTRY YOU CAN LOSE YOURSELF IN THIS SOCIETY AS LONG AS YOU DON'T APPLY FOR CREDIT SAYS FBI AGENT JOHN T GULLEY WHO TRACKED HIM FOR THREE YEARS AND FINALLY NABBED HIM MR FENWICK CONTINUALLY VOLUNTEERED TO DO FAVORS FOR MS LEE AND OTHERS LIKE DRIVING LETTERS TO THE POST OFFICE AND DOING PEOPLE'S TAXES FOR THEM ONE DAY I JUST STOPPED AND REMARKED THAT PAUL FENWICK WON'T BE ABLE TO COUNT ALL THE PEOPLE HE'S HELPED DURING HIS LIFETIME HE WAS JUST THE CATS SAYS PHOTOSHOP OWNER MARVIN VON ALMEN WHO HAD BEFRIENDED HIM MR VON ALMEN FREQUENTLY LENT HIS FRIEND MONEY AND UNTIL THE END IT WAS ALWAYS REPAID MR VON ALMEN GOT NERVOUS FROM TIME TO TIME ABOUT THE LOANS BUT MR FENWICK WOULD TALK ME DOWN HE SAYS I FIGURED HE WAS A PRINCIPAL IN THE LOGHOME COMPANY AND HE WAS GOING TO BE AROUND HERE FOR A WHILE AND WE WERE ALL SO OVERCOME WITH WHAT A GOOD PERSON HE WAS SO WERE MR FERRIS AND HIS WIFE CINDY WHO AFTER JOHN DID THE WORK ON MR FENWICK'S FIRST HOUSE BECAME PARTNERS WITH THEIR NEW FRIEND FIRST IN AN UNSUCCESSFUL DELIANDBASEBALLCARD SHOP AND THEN IN ANOTHER LOGHOME COMPANY CALLED CHEROKEE LOG HOMES A BUSINESS HE HELPED THEM START WHILE MR FERRIS SUPERVISED HOME CONSTRUCTION AND HIS WIFE MOSTLY HANDLED SALES MR FENWICK OFFERED TO HANDLE THE MONEY HE SELFLESSLY PUT IN WORKAHOLIC HOURS ARRANGING BANK FINANCING AND CATALOGING INVENTORY MOVING MONEY FROM ACCOUNT TO ACCOUNT AND GENERATING BLIZZARDS OF PAPERWORK HIS INTENSE MANAGEMENT STYLE WAS UNPRECEDENTED IN THESE PARTS MRS FERRIS AND OTHERS SAY WHEN SOMEBODY'S WORKING THAT HARD APPARENTLY FOR YOUR BENEFIT IT'S HARD TO QUESTION THEM SHE SAYS MS LEE MR FENWICK'S ONETIME GIRLFRIEND AND EMPLOYER AT THE OTHER LOGHOME COMPANY ALSO WAS TAKEN IN AT FIRST THE FUGITIVE'S 44YEAROLD WIFE STEPHANIE CAME TO VISIT IN EAST ELLIJAY FROM TIME TO TIME BUT HE INTRODUCED HER AROUND TOWN AS HIS DAUGHTER HEIDI HIS SON BENJAMIN VISITED TOO AND WAS INTRODUCED AS HIS NEPHEW BEN BUT IN TIME MS LEE SAYS I REALIZED HE WAS DOING MORE THAN WORKING ON MY BOOKS HE WAS WRITING HIMSELF CHECKS SHE SAYS HE NEVER DID PAY THE 19000 AND ABSCONDED WITH ANOTHER 37000 IN CHECKS HE WROTE TO HIMSELF FROM THE LOGHOME BUSINESS'S ACCOUNT IT TOOK HER SOME TIME TO FIGURE THIS OUT BECAUSE HE WAS CONSTANTLY MOVING MONEY AROUND BETWEEN THE BUSINESS AND SEVERAL PERSONAL AND BUSINESS ACCOUNTS OF HIS OWN SHE WENT TO LOCAL AUTHORITIES AND TO THE GEORGIA BUREAU OF INVESTIGATION LAST NOVEMBER AND TOLD THEM THAT AS MR CHEEK HAD CONFIDED TO HER PAUL FENWICK WAS NOT HIS REAL NAME HE HAD TOLD HER THIS WAS HIS CIA ALIAS HER COMPLAINT WAS ONE OF SEVERAL DEVELOPMENTS LEADING TO MR CHEEK'S CAPTURE ANOTHER WAS THE INVESTIGATIVE WORK INTO HIS BACKGROUND BY A LOCAL BANK AFTER HE WENT TWO MONTHS WITHOUT MAKING PAYMENTS ON A CAR LOAN SAYS FBI AGENT MR GULLEY LATE IN FEBRUARY THE FERRISES WENT ON A VACATION TO CANCUN MEXICO LEAVING THEIR PARTNER IN CHARGE OF CHEROKEE LOG HOMES WHEN THEY GOT BACK THEY SAW THAT HIS COMPUTER WAS GONE FROM THE CHEROKEE OFFICE PAUL WAS ALWAYS AT HIS COMPUTER SO WE KNEW SOMETHING WAS WRONG SAYS MRS FERRIS NEXT THEY DISCOVERED THAT SEVERAL CHECKS TOTALING TENS OF THOUSANDS OF DOLLARS HAD BEEN DRAWN ON THE BUSINESS'S ACCOUNT AND MADE OUT TO PAUL FENWICK IT TURNS OUT HE ALSO TOOK THOUSANDS OF DOLLARS IN CUSTOMERS' NEWHOME DOWN PAYMENTS THE FERRISES SAY AMOUNTS THEY NOW PLEDGE TO MAKE GOOD ALL TOLD MR FERRIS ESTIMATES THAT MR CHEEK FLED WITH MORE THAN 125000 OF THEIR FUNDS OR CUSTOMER MONEY MR VON ALMEN SAYS 14000 OF HIS MONEY ALSO DISAPPEARED WITH MR CHEEK A 4000 PERSONAL LOAN AND A 10000 INVESTMENT IN CHEROKEE LOG HOMES MR CHEEK LEFT THE FERRISES A PHONE MESSAGE AND A LETTER EXPLAINING THAT HIS FORMER EMPLOYER THE CIA HAD RECALLED HIM FOR AN IMPORTANT MISSION LOVE YOU BOTH PAUL THE LETTER CONCLUDED SOON AFTER A DIFFERENT FEDERAL AGENCY THE FBI CAME VISITING EAST ELLIJAY HAVING BEEN TIPPED OFF BY THE GEORGIA BUREAU OF INVESTIGATION THAT THE GENEROUS MR FENWICK MIGHT IN FACT BE MALCOLM CHEEK MR GULLEY DISPLAYED PHOTOS OF MALCOLM AND STEPHANIE CHEEK AND PEOPLE IMMEDIATELY IDENTIFIED THEM AS THEIR FRIENDS PAUL AND HEIDI FENWICK FEDERAL AGENTS THEN TRACKED THEIR MAN TO GEORGETOWN SC A COASTAL TOWN BETWEEN CHARLESTON AND MYRTLE BEACH AND ARRESTED HIM MR CHEEK IS EXPECTED TO BE ARRAIGNED IN THE NEXT COUPLE OF DAYS HE IS CHARGED IN A FEDERAL CRIMINAL COMPLAINT WITH USING THE SAME SHARES OF Y&A STOCK TO OBTAIN SEPARATE AND STILLUNREPAID BANK LOANS TOTALING 1 MILLION FROM TWO DIFFERENT BANKS HIS WIFE STEPHANIE ALSO IS CHARGED IN A FEDERAL CRIMINAL COMPLAINT WITH LYING TO FEDERAL AGENTS CLAIMING SHE DIDN'T KNOW HIS WHEREABOUTS THE FBI STILL IS INVESTIGATING FURTHER DETAILS OF MR CHEEK'S ACTIVITIES IN ST LOUIS AND GEORGIA AND NO CHARGES HAVE BEEN FILED IN GEORGIA MR AND MRS CHEEK STILL IN CUSTODY IN SOUTH CAROLINA COULDN'T BE REACHED FOR COMMENT AND AREN'T BELIEVED TO HAVE RETAINED AN ATTORNEY YET FEDERAL AGENTS WON'T SAY HOW THEY TRACKED MR CHEEK TO GEORGETOWN BUT THEY WILL SAY THEY CAUGHT UP WITH HIM IN AN OFFICE BUILDING THERE WHILE TWO AGENTS GUARDED THE BACK DOOR OF THE BUILDING MR GULLEY WALKED UP TO THE FUGITIVE AND ANNOUNCED MALCOLM IT'S ALL OVER YOU'RE UNDER ARREST AT THE TIME OF HIS ARREST MR CHEEK HAD SHAVED HIS BEARD BUT KEPT HIS MUSTACHE HE WAS CALLING HIMSELF RAYMOND TAYLOR AND HE WAS NEGOTIATING THE PURCHASE OF A VACUUMCLEANER AND SEWINGMACHINE SALES COMPANY 9404070051 940407 REVIEW & OUTLOOK EDITORIAL ASIDES IMPERIAL REACH NEWS REACHED HERE YESTERDAY THAT BORIS YELTSIN PUT THE PRESIDENTIAL STAMP TUESDAY ON A DOCUMENT CALLING FOR THE ESTABLISHMENT OF A NUMBER OF NEW RED ARMY MILITARY BASES AROUND THE CIS AND IN THE CURRENTLY FREE REPUBLIC OF LATVIA THE BALTIC NATION AND MOSCOW HAVE LONG WORKED ON AN AGREEMENT FOR WITHDRAWAL OF RUSSIA'S 8000 TROOPS WHICH THEY'VE INITIALED BUT NOT SIGNED YET THE NEW RUSSIAN PLAN FROM THE DEFENSE AND FOREIGN MINISTRIES APPEARS TO DUMP ALL THAT IT CALLS FOR NEW BASES TO ENSURE THE SECURITY OF THE RUSSIAN FEDERATION AND THE ABOVE NAMED NATIONS AS WELL AS TO TEST NEW WEAPONS AND MILITARY MACHINERY THERE'S SOME CONCILIATORY LANGUAGE ABOUT HOW RUSSIA IS TO NEGOTIATE THIS QUESTION WITH CIS MEMBERS AND THE REPUBLIC OF LATVIA LATVIA HOWEVER WENT INTO SHOCK FAXING US THAT LATVIA CANNOT AND WILL NOT ACCEPT A RUSSIAN MILITARY PRESENCE IN LATVIA AND MOSCOW KNOWS THIS HARD TO KNOW WHETHER THIS DOCUMENT TRULY REFLECTS A REVIVING RUSSIAN IMPERIALISM BUT IT AND OTHER SUCH BLIPS CURRENTLY ISSUING FROM THAT PART OF THE WORLD MAKE US THINK OF THE OLD GREAT GAME RUSSIANS ARRIVING IN CAPITALS OF FAROFF PLACES AND EVENTUALLY CLAIMING THEM 9404070048 940407 ECONOMY SEC APPROVES RULE LIMITING CONTRIBUTIONS MUNICIPAL BOND COMPANIES ALSO MUST MAKE SURE BUYERS UNDERSTAND RISK BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION APPROVED A HOTLY DEBATED RULE INTENDED TO LIMIT POLITICAL PATRONAGE IN THE MUNICIPALBOND BUSINESS THE COMMISSION ALSO APPROVED A RULE REVISION CLARIFYING BOND DEALERS' DUTIES TO MAKE SURE THAT INDIVIDUAL INVESTORS UNDERSTAND AND CAN BEAR THE RISKS THAT MUNICIPAL BONDS CAN POSE WITH THE ACTIONS THE SEC ADDRESSED TWO OF THE MOST TROUBLESOME ASPECTS OF THE MUNICIPALBOND MARKET BOND FIRMS' CONTRIBUTIONS TO POLITICIANS WHO AWARD BOND BUSINESS AND THE SPATE OF BOND PURCHASES BY INDIVIDUAL INVESTORS IT IS CRITICAL THAT DEALERS HAVE CLEAR POLICIES TO ENSURE THAT SALES PERSONNEL DO NOT RECOMMEND SECURITIES TO CUSTOMERS WITHOUT PROPER REGARD TO THE NATURE OF THE SECURITY BEING RECOMMENDED AND THE CUSTOMER TO WHOM IT IS BEING RECOMMENDED SEC CHAIRMAN ARTHUR LEVITT SAID THE RULE REVISION APPROVED BY THE COMMISSION SETS OUT THE EXTENT OF INFORMATION THAT A BOND DEALER MUST OBTAIN FROM AN INDIVIDUAL INVESTOR TO DETERMINE WHETHER A PARTICULAR BOND IS A SUITABLE INVESTMENT FOR THAT PERSON THE RULE TAKES EFFECT IMMEDIATELY AFTER IT IS PUBLISHED IN THE FEDERAL REGISTER THE REVISION TO THE SUITABILITY RULE HAD BEEN A PET PROJECT OF COMMISSIONER RICHARD ROBERTS WHO SAID HE WAS SHARPLY CRITICIZED BY BOND FIRMS WHEN HE FIRST PROPOSED THE REVISION BUT THE CRITICISM FADED AWAY IN THE HEAT OVER THE PROPOSAL TO LIMIT POLITICAL CONTRIBUTIONS BY BOND FIRMS BOTH THE CONTRIBUTION RULE AND THE REVISION TO THE INVESTOR RULE WERE PROPOSED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD A QUASIGOVERNMENTAL BODY THAT SETS STANDARDS FOR MUNICIPALSECURITIES DEALERS THE MSRB'S RULES REQUIRE SEC APPROVAL THE MSRB DREW A BARRAGE OF CRITICISM WHEN IT FIRST PROPOSED LAST YEAR THAT BOND FIRMS' POLITICAL CONTRIBUTIONS SHOULD BE CURTAILED COMPLAINTS CAME FROM SMALL AND MIDSIZED BOND FIRMS AS WELL AS FROM STATE AND LOCAL OFFICIALS BUT THE PROPOSAL HAD THE STRONG BACKING OF THE SEC WHICH APPROVED THE MSRB RULE PROHIBITING BOND FIRMS FROM DOING BUSINESS WITH A STATE OR LOCAL GOVERNMENT WITHIN TWO YEARS OF A POLITICAL CONTRIBUTION TO AN OFFICIAL OF THE GOVERNMENT THE RULE REQUIRES FIRMS TO KEEP RECORDS OF EMPLOYEES' CAMPAIGN CONTRIBUTIONS AND REPORT SUCH CONTRIBUTIONS QUARTERLY TO THE MSRB THE RULE WILL HELP INSURE THAT POLITICAL CONTRIBUTIONS ARE NOT A FACTOR IN THE SELECTION OF BOND UNDERWRITERS SAID ROBERT LD COLBY DEPUTY DIRECTOR OF THE SEC'S MARKETREGULATION DIVISION A LAWSUIT CHALLENGING THE CONSTITUTIONALITY OF THE RULE IS PENDING IN FEDERAL COURT IN ALABAMA DESPITE THE SUIT SEC GENERAL COUNSEL SIMON LORNE SAID THE MSRB RULE SHOULD TAKE EFFECT AS PLANNED 10 DAYS AFTER PUBLICATION IN THE FEDERAL REGISTER BOND FIRMS AREN'T EXPECTED TO HAVE PROBLEMS COMPLYING WITH THE RULE BECAUSE OF THE SEVERAL MONTHS OF DEBATE WE'VE BEEN IN THE IMPLEMENTATION MODE FOR A WHILE SAID MICAH GREEN EXECUTIVE VICE PRESIDENT OF THE PUBLIC SECURITIES ASSOCIATION A TRADE GROUP FOR BOND FIRMS I THINK EVERYONE'S READY TO MOVE ON IT 9404070047 940407 LEISURE & ARTS BOOKSHELF THE REAL EMMA BOVARY BY BROOKE ALLEN FRANCINE DU PLESSIX GRAY'S RIVETING BIOGRAPHY RAGE & FIRE SIMON & SCHUSTER 432 PAGES 2750 RESCUES FROM OBSCURITY A COLORFUL LITTLEREMEMBERED FIGURE OF THE FRENCH ROMANTIC ERA HER NAME WAS LOUISE COLET AND IN HER HEYDAY IN THE 1830S AND '40S SHE WAS FAMOUS AS A POET A POLITICAL RADICAL AND A BEAUTY NOW HER POETRY MOSTLY FORGOTTEN SHE IS KNOWN CHIEFLY FOR HAVING BEEN THE MISTRESS OF GUSTAVE FLAUBERT AND THE PRINCIPAL MODEL FOR HIS NOVEL MADAME BOVARY MS GRAY THE AUTHOR OF LOVERS AND TYRANTS AND SOVIET WOMEN BRINGS TO LOUISE COLET'S LIFE THE MIXTURE OF CHATTINESS AND ERUDITION THAT HAS GRACED HER PREVIOUS WORK HER DESCRIPTIONS OF THE PLACES ASSOCIATED WITH THE WRITER HER REDISCOVERY OF DUSTY MANUSCRIPTS AND MEETINGS WITH LOUISE'S DESCENDANTS ENRICH HER STORY OF COLET AND THE COMPLEX PASSIONATE ERA IN WHICH SHE LIVED LIKE EMMA BOVARY LOUISE LONGED TO ESCAPE HER DREARY COUNTRY LIFE IN THE PROVENCE AND GO TO PARIS BUT UNLIKE EMMA WHOSE MARRIAGE TO A SMALLTOWN DOCTOR TIED HER TO A PROVINCIAL LIFE LOUISE CHOSE A HUSBAND WHO WAS HEADED FOR A CAREER IN THE CAPITAL HIPPOLYTE COLET A SICKLY MUSIC TEACHER SHE SOON SHED NEVER SHY LOUISE IMMEDIATELY BEGAN CULTIVATING PEOPLE WITH INFLUENCE IN THE LITERARY WORLD AND THANKS TO HER TALENTS AS WELL AS LUSH BEAUTY SHE SOON DREW THE ATTENTION SHE SOUGHT AT AGE 29 SHE WAS AWARDED THE FIRST OF FOUR ACADEMIE FRANCAISE POETRY PRIZES AND HAD LANDED THE VITAL ACCESSORY FOR A WOMAN SEEKING A PLACE IN THE LITERARY ARENA AN INFLUENTIAL LOVER VICTOR COUSIN FRANCE'S LEADING PHILOSOPHER HE WAS BUT THE FIRST AND MOST TENACIOUS OF LOUISE'S CONQUESTS AN IMPRESSIVE LIST THAT INCLUDED NOT ONLY FLAUBERT BUT THE CONSERVATIVE ALFRED DE VIGNY AND THE DISSIPATED ALFRED DE MUSSET NONE HOWEVER PAID FOR HER COMPANY LOUISE SUPPORTED HERSELF AND HER DAUGHTER WITH JOURNALISM NOVELS AND POETRY AT A TIME WHEN IT WAS VERY DIFFICULT FOR WOMAN WRITERS TO MAKE A LIVING HER ROMANTIC EFFUSIONS HAVE GONE OUT OF FASHION AND THE MODERN READER WILL PROBABLY SHARE FLAUBERT'S OPINION THAT HER WRITING IS TOO PERSONAL AND CONFESSIONAL A CHARACTERISTIC FRAGMENT GOES LIKE THIS ALONE WITHOUT EVER REACHING THE SOURCE WHERE I CAN SATE MY THIRST ALONE WITHOUT ANOTHER SOUL WHICH MY OWN SOUL COULD REACH ALONE ALWAYS ALONE EVEN MS GRAY DESCRIBES LOUISE AS A NINETEENTHCENTURY ERICA JONG BUT SUCH LINES ONCE STIRRED THE HEART OF NO LESS AN AUTHORITY THAN VICTOR HUGO WHO WROTE THAT HER VERSES WERE PERHAPS THE MOST BEAUTIFUL TO EVER HAVE BEEN COMPOSED BY A POET'S SOUL AND A WOMAN'S HEART THAT HEART CERTAINLY CAME IN FOR MUCH ABUSE BEGINNING IN 1846 WHEN LOUISE MET FLAUBERT AT THE SCULPTURE STUDIO OF JAMES PRADIER SHE WAS 36 AT THE HEIGHT OF HER GLAMOUR HE WAS A 24YEAROLD AMBITIOUS NOBODY AT FIRST THEIR AFFAIR WAS ECSTATIC AND TEMPESTUOUS ACCORDING TO THE FASHION OF THE PERIOD FLAUBERT RELISHED THEIR SEXUAL ABANDON AND FETISHIZED ARTICLES OF LOUISE'S CLOTHING BUT HE SOON TIRED OF HER DEMANDS FOR SHE WAS GENUINELY IN LOVE POOR COLET WAS STRUGGLING WITH A VERY ODD FISH FLAUBERT SPENT ALMOST ALL HIS TIME WITH HIS MOTHER AT THEIR FAMILY HOME IN NORMANDY NEITHER LOUISE NOR ANY OTHER WOMAN WAS ALLOWED TO DISTURB THIS IDYLL MARRIAGE HE SAW AS AN APOSTASY AND FATHERHOOD A CRIME APART FROM HIS MOTHER THE MOST INTENSE RELATIONSHIPS IN HIS LIFE WERE WITH A FEW MALE FRIENDS WHOSE CONTEMPT FOR WOMEN WAS IF POSSIBLE EVEN MORE PRONOUNCED MS GRAY GIVES SOME FAIRLY STARTLING EXAMPLES OF THE WAY FLAUBERT AND HIS FRIENDS ENJOYED DEGRADING WOMEN AND THE OBSCENE AND VICIOUS TONE IN WHICH THEY WROTE ABOUT THEM TO EACH OTHER FLAUBERT OFTEN BOASTED MS GRAY WRITES THAT UPON ENTERING A BORDELLO HE CHOSE THE UGLIEST WHORE HE COULD FIND AND TOOK HER IN FRONT OF HIS PALS PUFFING ON A CIGAR HIS HAT STILL ON HIS HEAD NOT SURPRISINGLY HE HAD ONLY PORNOGRAPHIC WORDS FOR FEMALE SCRIBBLERS WHO THINK THE MOON IS MADE TO ILLUMINATE THEIR BOUDOIR LOUISE PASSIONATE AND INTELLECTUAL JUST INFURIATED AND EMBARRASSED HIM WITH HER ARDOR IT IS ONLY BECAUSE OF HER FEROCIOUS PERSISTENCE THAT THE AFFAIR LASTED AS LONG AS IT DID BEARING FRUIT NOT ONLY IN MADAME BOVARY BUT IN FLAUBERT'S REMARKABLE LETTERS TO LOUISE OUTLINING HIS THEORIES OF FICTION OF COURSE WHEN LOUISE READ MADAME BOVARY IN WHICH HE BRUTALLY MOCKED WHAT SHE HAD SEEN AS A GREAT PASSION SHE WAS HUMILIATED BUT THIS BOOK IS MORE THAN JUST A GRIM DOCUMENT OF AN UNHAPPY AFFAIR THERE IS MUCH MORE TO LOUISE COLET'S LIFE THAN HER EIGHTYEAR CAREER AS FLAUBERT'S MUSE MS GRAY PAINTS A SPLENDID BACKGROUND FOR HER HEROINE THERE IS A WONDERFUL CAST OF MINOR CHARACTERS INCLUDING JULIETTE RECAMIER THE FAMOUSLY RECLINING BEAUTY PAINTED IN HER YOUTH BY DAVID AND THERE ARE SCENES OF HUMOR AND POIGNANCY INCLUDING A DESCRIPTION OF LOUISE SNEAKING INTO THE HOUSE OF A SCURRILOUS EDITOR AND TRYING TO ASSASSINATE HIM WITH A KITCHEN KNIFE MS GRAY FOLLOWS LOUISE TO HER DEATH IN HER DAUGHTER'S PARIS FLAT IN 1876 IN OLD AGE SHE WAS PLAGUED BY POVERTY AND ILL HEALTH BUT AS A JOURNALIST SHE NEVER FLAGGED IN HER TIRELESS EFFORTS ON BEHALF OF WOMEN AND AGAINST ORGANIZED RELIGION THIS TACTLESS BUT ENTHUSIASTIC WOMAN LOVINGLY DEPICTED BY HER BIOGRAPHER SHOULD FINALLY SEDUCE EVEN THE MOST CYNICAL ANTIROMANTIC JUST AS SHE SEDUCED HER CONTEMPORARIES 9404070045 940407 YOUR MONEY MATTERS INVESTMENT DARTBOARD PROS COAST TO AN EASY VICTORY IN LATEST STOCKPICKING CONTEST BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL THE PROS SHOWED THEIR STUFF IN THIS COLUMN'S LATEST STOCKPICKING CONTEST EASILY BESTING THE DOW JONES INDUSTRIAL AVERAGE AND THE FORCES OF CHANCE A TEAM OF FOUR INVESTMENT PROFESSIONALS AVERAGED A 47 GAIN IN THE CONTEST THAT RAN FROM OCT 4 1993 TO MARCH 31 WHILE THAT MAY NOT SEEM WORTH BRAGGING ABOUT FOUR STOCKS PICKED BY WALL STREET JOURNAL STAFFERS FLINGING DARTS AT THE STOCK TABLES LOST 92 AND THE DOW INDUSTRIALS ROSE JUST 16 FOR THE SAME PERIOD LAST WEEK'S STOCKMARKET DEBACLE HAD AN EFFECT HAD THE CONTEST ENDED JUST EIGHT DAYS EARLIER THE PROS WOULD HAVE SCORED AN AVERAGE 188 GAIN COMPARED WITH 82 FOR THE DOW INDUSTRIALS AND AN AVERAGE 12 GAIN FOR THE DARTS THE SCORE IS NOW 2818 FOR THE PROS AGAINST THE DARTS IN THIS SERIES OF OVERLAPPING SIXMONTH CONTESTS THE PROS ARE ALSO AHEAD 2422 AGAINST THE INDUSTRIAL AVERAGE THE PROFESSIONAL STOCK PICKERS HAVE RACKED UP AN AVERAGE SIXMONTH GAIN OF 81 IN THE 46 SIXMONTH CONTESTS COMPARED WITH 45 FOR THE DOW INDUSTRIALS AND 35 FOR THE DARTS IN THE LATEST ENCOUNTER THE PROS WERE LED BY ANDREW ADDISON A TECHNICAL MARKET ANALYST AND EDITOR OF THE ADDISON REPORT AN INVESTMENT NEWSLETTER IN FRANKLIN MASS IN HIS FIRST TIME IN THE COMPETITION MR ADDISON PICKED PROTEIN DESIGN LABS INC A MOUNTAINVIEW CALIF BIOTECHNOLOGY COMPANY WHOSE STOCK JUMPED NEARLY 47 IN SIX MONTHS CORANGE CORP OF BERMUDA AGREED IN NOVEMBER TO INVEST 75 MILLION IN PROTEIN DESIGN AND SEPARATELY TO ACQUIRE MARKETING RIGHTS TO SEVERAL POTENTIAL DRUGS THE CALIFORNIA FIRM IS DEVELOPING IN SECOND PLACE WAS SALLY ANDERSON OF KOPP INVESTMENT ADVISORS IN EDINA MINN WHO HAS FINISHED SECOND TWICE BEFORE AND FIRST ONCE HER CHOICE OF HILLHAVEN CORP A TACOMA WASH OPERATOR OF NURSING HOMES ROSE 88 AS IS THE CUSTOM OF THIS COLUMN THE TWO TOP FINISHERS HAVE BEEN INVITED BACK FOR ANOTHER GO AGAINST THE FORCES OF CHANCE THEY WILL BE JOINED BY DOUGLAS KASS DIRECTOR OF INSTITUTIONAL EQUITIES FOR JW CHARLES/CSG A BOCA RATON FLA BROKERAGE FIRM AND CHRISTOPHER NIEMCZEWSKI OF MARSHFIELD ASSOCIATES A WASHINGTON DC MONEYMANAGEMENT FIRM MR ADDISON SAID PICKING A STOCK FOR THE NEXT SIX MONTHS WAS ONE OF THE MOST DIFFICULT CHOICES I'VE HAD TO MAKE BECAUSE OF THE TURMOIL IN THE MARKET HE'S GOING WITH NEWPARK RESOURCES INC A METAIRIE LA COMPANY THAT PROVIDES CONSTRUCTION MAINTENANCE AND ENVIRONMENTAL SERVICES FOR OIL WELLS THERE'S A DIRECT RELATIONSHIP BETWEEN THE RATE OF DRILLING AND THE DEMAND FOR NEWPARK'S SERVICES HE SAID AND AS OF MIDMARCH THE US RIG COUNT WAS UP 20 OVER A YEAR AGO MOST OF THE INCREASE IS IN THE GULF OF MEXICO WHERE NEWPARK HAS ABOUT A 40 MARKET SHARE MR ADDISON SAID THE COMPANY HANDLES THE PETROLEUMLACED MUD ROCK AND LIQUID THAT'S LEFT AFTER WELLS HAVE BEEN DRILLED SOME OF IT IS CONVERTED FOR USE AS LANDFILL COVER MR ADDISON SAID HE ALSO LIKES THE FACT THAT COMPANY OFFICERS AND DIRECTORS OWN MORE THAN 20 OF THE STOCK SO THEY HAVE A STAKE IN ITS SUCCESS HE EXPECTS NEWPARK'S PERSHARE EARNINGS TO RISE MORE THAN 50 THIS YEAR AND SAYS ITS STOCK PRICE COULD RISE TO BETWEEN 18 AND 20 A SHARE IT TRADED LATE YESTERDAY ON THE NASDAQ STOCK MARKET AT 1425 MS ANDERSON'S CHOICE IS NORAND CORP A CEDAR RAPIDS IOWA MAKER OF HANDHELD COMPUTERS LINKED TO WIRELESS COMMUNICATIONS SYSTEMS THE INDUSTRIAL STRENGTH MACHINES CURRENTLY ARE USED MOSTLY FOR DATA COLLECTION AND FOR INVENTORY AND DISTRIBUTION ON THE FACTORY FLOOR BUT PRODUCTS NOW BEING INTRODUCED COULD HAVE APPLICATIONS IN HEALTH CARE TRUCKING AND OTHER INDUSTRIES SHE SAID ONE REASON MS ANDERSON LIKES THE COMPANY SHE SAID IS THAT IT HAS EXPERIENCE OPERATING UNDER RIGOROUS FINANCIAL CONSTRAINTS AND STILL MANAGED TO REINVEST 11 OF ITS REVENUE IN PRODUCT DEVELOPMENT AND ENGINEERING NORAND WENT PUBLIC EARLY LAST YEAR FIVE YEARS AFTER IT WAS SOLD BY PIONEER HIBRED INTERNATIONAL INC IN A LEVERAGED BUYOUT SHE SAYS THE STOCK COULD RISE TO ABOUT 40 A SHARE DURING THE SIX MONTHS OF THE CURRENT CONTEST AND TO 45 WITHIN A YEAR NORAND TRADED LATE YESTERDAY ON THE NASDAQ STOCK MARKET AT 3175 MR KASS HAS BEEN CALLED THE BEAR OF BOCA BECAUSE HE OFTEN RECOMMENDS SELLING STOCKS SHORT A BET THAT PRICES WILL FALL THIS TIME HOWEVER HE PICKED BENSON EYECARE CORP AS A STOCK TO BUY IT'S GROSSLY UNDERVALUED HE SAID ADDING THAT AN EXTRAORDINARILY OPPORTUNISTIC MANAGEMENT TEAM HAS INCREASED SALES THROUGH ACQUISITIONS AND CUT COSTS THE NEW YORKBASED COMPANY DISTRIBUTES NONPRESCRIPTION READING GLASSES AND SUNGLASSES THAT ARE SOLD AT KMART AND WALMART STORES AND OTHER MASSMARKET OUTLETS IT ALSO PROVIDES OPHTHALMIC SERVICES SUCH AS DISPENSARIES AND MEDICAL AND SURGICAL EYECARE CENTERS NOTING THAT AGING BABYBOOMERS WILL NEED MORE VISION CARE AND READING GLASSES MR KASS SAID BENSON EYECARE IS THE ONLY PURE PLAY ON THESE DEMOGRAPHICS HE EXPECTS REVENUE TO MORE THAN TRIPLE THIS YEAR AND THE STOCK PRICE TO MORE THAN DOUBLE DURING THE NEXT 12 MONTHS BENSON TRADED ON THE AMERICAN STOCK EXCHANGE LATE YESTERDAY AT 7125 MR NIEMCZEWSKI CHOSE BANKERS TRUST NEW YORK CORP WHICH HE SAID ISN'T A BANK ANYMORE BUT A RISKMANAGEMENT COMPANY IN THE BUSINESS OF HELPING COMPANIES HEDGE INTERESTRATE RISK AND CURRENCY RISK VOLATILITY CREATES A DEMAND FOR ITS SERVICES HE SAID THE STOCK WHICH TRADED ON THE NEW YORK STOCK EXCHANGE LATE YESTERDAY AT 70875 IS CHEAP MR NIEMCZEWSKI SAID AT 135 TIMES BOOK VALUE THE RETURN ON EQUITY IS MORE THAN 20 AND THE DIVIDEND YIELD CURRENTLY IS MORE THAN 5 THE COMPANY HAS STATEOFTHEART TECHNOLOGY AND SMART PEOPLE WHO AREN'T AFRAID TO INNOVATE HE SAID AND IS GETTING INTO THE BUSINESS OF CORPORATE FINANCE AND MERGERS AND ACQUISITIONS ADVICE IT'S A BET ON THE WORLD BECOMING A MORE COMPLEX PLACE WHICH ISN'T A BAD BET HE SAID FOR THE COMING SIX MONTHS THE PROFESSIONALS WILL COMPETE AGAINST A DARTBOARD PORTFOLIO THAT COMPRISES AAON INC JAMES RIVER CORP LA QUINTA MOTOR INNS INC AND MID ATLANTIC MEDICAL SERVICES INC SERVICES/TRADELINE AIRES UP 115 NORTHWEST ILLINOIS BANCORP UP 35 SPAGHETTI WAREHOUSE INC DOWN 149 GENERAL KINETICS INC DOWN 368 9404070044 940407 LETTERS TO THE EDITOR COURT GOES TOO FAR IN LIMITING JURY ROLE YOUR FEB 18 ARTICLE COURT MAY CONSIDER SOME LIMITS ON JURIES' ROLE IN PATENT LAWSUITS IS CORRECT WHEN IT SAYS THERE EXISTS A MAJOR PROBLEM WITHIN THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT BUT THE PROBLEM ISN'T WITH THE JURIES IT RESIDES WITHIN THE COURT AND ITS WILLINGNESS TO ASSUME THE ROLE OF FACTFINDER AND RETRIER OF CASES ON THE BASIS OF WRITTEN BRIEFS AND 15MINUTE ORAL ARGUMENTS THE CASE YOU CITED COLLINS LICENSING V AT&T IS A PERFECT EXAMPLE THE COURT OVERTURNED THE JURY'S FINDING AGAINST AT&T AND 35 MILLION IN DAMAGES ON THE BASIS OF INFORMATION THAT WAS ALLEGED IN A BRIEF BUT NEVER PRESENTED TO THE JURY A CRITICAL TECHNICAL ILLUSTRATION USED BY THE COURT WAS NEVER PRESENTED AT THE TRIALS AT&T REFERRED THE COURT TO AN ANALYSIS OF THE ILLUSTRATION OF INVALIDATING FORCE THAT WAS IMPORTANT EVIDENCE FOR THE JURY HOWEVER AT&T NEVER PRESENTED THE ANALYSIS AT THE TRIAL THE ANALYSIS WAS WRONG THE US PATENT OFFICE IN THREE SEPARATE REVIEWS FOUND THAT PATENT 3956593 WAS VALID AND ENFORCEABLE THE JURY AGREED YET THE COURT ACCEPTED AT&T'S FALSE CONTENTION THAT A FACTOR IN THE CASE WAS THAT SOMEONE ELSE AND NOT TELECOMMUNICATIONS PIONEER ARTHUR COLLINS HAD ESSENTIALLY INVENTED THE MODULAR DIGITAL SWITCH ARCHITECTURE AT ISSUE MR COLLINS PETITIONED FOR A REHEARING PROVIDING LETTERS FROM FIVE OUTSTANDING QUALIFIED ENGINEERS EXPLAINING TO THE COURT THAT THEY HAD MISUNDERSTOOD THE CRITICAL ILLUSTRATION THE COURT REFUSED TO ACCEPT THE LETTERS AND DENIED THE REHEARING OF COURSE WE ARE CONCERNED ABOUT THE WRONG DONE TO THE COLLINS FAMILY AND FRIENDS WHO FORMED COLLINS LICENSING CO IN EFFORTS TO DEFEND MR COLLINS'S PATENT BUT WE ARE EQUALLY CONCERNED THAT THE APPEALS COURT HAS GONE TOO FAR IN ITS ZEAL TO LIMIT THE POTENTIAL HARM DONE BY JURIES OF ORDINARY PEOPLE WHO DECIDE HIGHLY TECHNICAL CASES HERE WE HAVE A COURT THAT IS WILLING TO ACCEPT AT FACE VALUE THE FALSE CLAIMS OF THE MIGHTY SIMPLY IT APPEARS TO SHOW THAT IT WON'T ALLOW JURIES TO GET TOO RAMBUNCTIOUS THERE MAY INDEED BE A THREAT TO THE RIGHT TO FAIR TRIAL FROM OVERMATCHED JURIES IN EXTREMELY COMPLICATED CASES BUT I SUBMIT THAT THE MORE DANGEROUS THREAT TO THE SYSTEM LIES IN EFFORTS TO SUPPRESS OUR CONSTITUTIONAL RIGHT TO A JURY TRIAL IT IS THAT RIGHT THAT PROTECTS THE WEAK WITHOUT THAT PROTECTION IT WILL BECOME EVEN MORE DIFFICULT FOR THE SMALL PLAINTIFF TO DEFEND HIM OR HERSELF AGAINST ALLTOOCOMMON INCURSIONS ON THEIR LIFE'S WORK BY MAJOR CORPORATIONS 9404070043 940407 POLITICS & POLICY WHITE HOUSE FOCUSES ON MITCHELL AS SUCCESSOR TO BLACKMUN THOUGH OTHERS AREN'T RULED OUT BY PAUL M BARRETT AND JACKIE CALMES STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON INSIDE THE WHITE HOUSE MOST OF THE CONVERSATION ABOUT WHOM PRESIDENT CLINTON SHOULD APPOINT TO FILL THE SUPREME COURT SEAT BEING VACATED BY JUSTICE HARRY BLACKMUN FOCUSES ON ONE MAN SENATE MAJORITY LEADER GEORGE MITCHELL THE MAINE DEMOCRAT IS THE EMBODIMENT OF WHAT MR CLINTON HAS SAID HE WANTS IN A JUSTICE HE IS A CONSENSUSBUILDER A RESPECTED INTELLECT A MAN OF PUBLIC SERVICE AND EXPERIENCE WHO WILL BRING THE HEFT THAT CLINTON CRAVES TO GIVE THE COURT MOREOVER SEN MITCHELL'S STATURE INSIDE THE SENATE CLUB MAKES HIM AN OVERWHELMING FAVORITE FOR CONFIRMATION THERE ISN'T ANYONE WHO WOULD VOTE AGAINST HIM SAYS WILLIAM COHEN MAINE'S OTHER SENATOR AND A REPUBLICAN WHO SITS ON THE JUDICIARY COMMITTEE THAT HANDLES SUPREME COURT NOMINATIONS AT A TIME WHEN THE CLINTON ADMINISTRATION HAS ITS HANDS FULL WITH WHITEWATER AND HEALTHCARE OVERHAUL THE PROSPECTS OF A SMOOTH CONFIRMATION ARE AMONG SEN MITCHELL'S STRONGEST ATTRIBUTES BUT AFTER JUSTICE BLACKMUN ANNOUNCED HIS RETIREMENT YESTERDAY AS EXPECTED WHITE HOUSE AIDES WERE REFUSING TO CONFIRM THAT THE CHOICE HAS BEEN NARROWED DOWN TO THE 60YEAROLD SEN MITCHELL INSTEAD THEY EMPHASIZED THAT IT COULD BE SEVERAL WEEKS BEFORE PRESIDENT CLINTON ANNOUNCES HIS DECISION THE REASON TO SEE IF PROBLEMS ARISE THAT COULD DERAIL HIS CONFIRMATION CONSERVATIVE ACTIVISTS ALREADY ARE GEARING UP TO TAKE ADVANTAGE OF THAT DELAY BY TRYING TO BLOODY THE SENATOR'S REPUTATION AND PUBLICIZE HIS LIBERAL VOTING RECORD IF OPPONENTS FAIL TO FIND ANY SKELETONS IN THE MAJORITY LEADER'S CLOSET THE WHITE HOUSE COULD PROCEED WITH THE NOMINATION SEN MITCHELL WHO RECENTLY SAID HE WOULD RETIRE FROM CONGRESS LATER THIS YEAR WOULDN'T DISCUSS THE COURT MATTER IT PROBABLY WOULD BE BEST IF I DECLINED ANY COMMENT HE SAID IN A PHONE INTERVIEW FROM MAINE I'VE NOT BEEN MADE AN OFFER LAST YEAR HE MADE IT KNOWN THAT HE WAS NOT READY TO LEAVE THE SENATE FOR THE SUPREME COURT VACANCY THAT WAS ULTIMATELY FILLED BY JUSTICE RUTH BADER GINSBURG EVEN AS WHITE HOUSE AIDES TOUT THE MAJORITY LEADER AS THE CLEAR FRONTRUNNER FOR THE NEW VACANCY SPECIAL COUNSEL LLOYD CUTLER SAID YESTERDAY THAT IT'S NOT AN OPENORSHUT GAME FOR ANYONE MR CUTLER HAS SAID HE WANTS A DELIBERATIVE PROCESS AND OTHER AIDES SAY THAT COULD TAKE WEEKS MAYBE EVEN LONGER THAT GIVES TIME FOR SUPPORTERS OF OTHER NOMINEES TO MAKE THEIR CASE ONE OF THOSE GETTING ATTENTION IN THE WHITE HOUSE IS JOSE CABRANES CHIEF FEDERAL TRIAL JUDGE IN CONNECTICUT MEANTIME BACKERS OF RICHARD ARNOLD A FEDERAL APPEALSCOURT JUDGE IN LITTLE ROCK ARK ARE LOBBYING THE WHITE HOUSE ON HIS BEHALF APPARENTLY INTERIOR SECRETARY BRUCE BABBITT HAS TAKEN HIMSELF OUT OF THE RUNNING WHEN ASKED ABOUT THE SUPREME COURT VACANCY AT A CALIFORNIA NEWS CONFERENCE YESTERDAY HE SAID THAT HE HOPES TO CONTINUE WITH IMPORTANT WORK AT THE INTERIOR DEPARTMENT THE WHITE HOUSE ITSELF IS ASKING MANY QUESTIONS ABOUT A MITCHELL NOMINATION HOW WOULD HIS APPOINTMENT AFFECT HEALTHCARE LEGISLATION WHEN WOULD HE RESIGN FROM THE SENATE AND WOULD MAINE'S GOP GOVERNOR APPOINT AN INTERIM REPUBLICAN REPLACEMENT HOW MIGHT SEN MITCHELL'S VOTE FOR A PAY RAISE FOR JUDGES AFFECT WHEN OR EVEN WHETHER HE COULD TAKE THE SEAT IT IS HARD TO IMAGINE THAT CONSERVATIVE ACTIVISTS COULD UNEARTH REVELATIONS SERIOUS ENOUGH TO DENT HIS OVERWHELMING POPULARITY INSIDE THE SENATE DESPITE HIS PARTISAN ROLE HE HAS ENJOYED CORDIAL RELATIONS WITH ALMOST ALL OF HIS COLLEAGUES SEN ORRIN HATCH OF UTAH THE RANKING REPUBLICAN ON THE SENATE JUDICIARY COMMITTEE AND A KEY PLAYER IN CONFIRMATION POLITICS SAYS I HAPPEN TO THINK A GREAT DEAL OF GEORGE MITCHELL AND I THINK IT WOULD BE A FAIRLY EASY CONFIRMATION PROCESS NEVERTHELESS UNLIKE A YEAR AGO WHEN THERE WAS ONLY TOKEN OPPOSITION MOUNTED TO THE SELECTION OF JUSTICE GINSBURG CONSERVATIVE ACTIVISTS ARE ITCHING FOR A BLOODY CONFIRMATION FIGHT THE SELECTION OF SEN MITCHELL WOULD GUARANTEE A DECLARATION OF WAR THE POLITICAL ATMOSPHERE IN WASHINGTON HAS COMPLETELY CHANGED SAYS FLOYD BROWN CHAIRMAN OF CITIZENS UNITED A GROUP THAT HAS BEEN FANNING THE FLAMES OF WHITEWATER TO DAMAGE THE CLINTON ADMINISTRATION ADDITIONALLY MR BROWN WHO WAS INVOLVED IN THE CLARENCE THOMAS CONFIRMATION FIGHT POINTS OUT THE SECOND NOMINEE ALWAYS GETS MORE SCRUTINY THE CONSERVATIVE RESEARCH NETWORK IS ALREADY BUSY YESTERDAY THOMAS JIPPING THE CHIEF LEGAL STRATEGIST FOR THE FREE CONGRESS FOUNDATION A NERVE CENTER FOR CONSERVATIVE OPPOSITION EFFORTS WAS BUSILY COMBING THROUGH SEN MITCHELL'S DECISIONS AS A FEDERAL JUDGE SEN MITCHELL'S EXTENSIVE LIBERAL VOTING RECORD IN THE SENATE PROVIDES A LOT OF MATERIAL TO WORK WITH MR JIPPING ADDS GLEEFULLY BESIDES SEN MITCHELL'S RECORD VIRTUALLY EVERY ASPECT OF HIS LIFE INCLUDING A DIVORCE SEVEN YEARS AGO WILL RECEIVE ATTENTION I WOULD ASSUME IT WOULD BE PICKED OVER SAYS CLINT BOLICK LITIGATION DIRECTOR AT THE INSTITUTE FOR JUSTICE WHO LED THE SUCCESSFUL FIGHT AGAINST THE NOMINATION OF LANI GUINIER TO A TOP CLINTON JUSTICE DEPARTMENT POST IRONICALLY SEN MITCHELL MAY FACE HIS MOST FURIOUS ATTACKS BEFORE HE IS NOMINATED AS CONSERVATIVE ACTIVISTS TRY TO STEER THE SELECTION TO SOMEONE MORE PALATABLE TO THEM THE FIRST SWIPE ACTIVISTS PLAN IS TO RAISE QUESTIONS ABOUT WHETHER THE NOMINATION OF A SITTING SENATOR VIOLATES THE CONSTITUTION'S EMOLUMENTS CLAUSE THAT PROVISION BARS THE APPOINTMENT OF A MEMBER OF CONGRESS TO A FEDERAL OFFICE WHOSE PAY OR BENEFITS WERE INCREASED DURING THE APPOINTEE'S CONGRESSIONAL TERM THE ANNUAL SALARY FOR SUPREME COURT JUSTICES NOW 164100 HAS BEEN INCREASED SEVERAL TIMES DURING SEN MITCHELL'S CURRENT TERM WE'RE TALKING ABOUT THE APPEARANCE OF IMPROPRIETY IN A SENATOR HAVING VOTED FOR PAY INCREASES FOR HIMSELF AND HIS NEW COLLEAGUES SAYS MR JIPPING OF THE FREE CONGRESS FOUNDATION BRIEFING AT WHITE HOUSE THE WHITE HOUSE HAS CLEARLY GIVEN A LOT OF THOUGHT TO THESE ISSUES AND TO NAMING SEN MITCHELL TO THE HIGH COURT IN A BRIEFING AT THE WHITE HOUSE YESTERDAY SPECIAL COUNSEL CUTLER SAID A SOLUTION COULD BE FOUND TO THE PROBLEM OF THE SENATOR VOTING FOR A PAY RAISE FOR JUDGES HE ALSO MADE CLEAR THAT THE WHITE HOUSE HAS DONE A TREMENDOUS AMOUNT OF RESEARCH INTO THE HISTORY AND POTENTIAL ROADBLOCKS TO NOMINATING A SITTING MEMBER OF THE SENATE TO THE SUPREME COURT AND HE ACKNOWLEDGED THAT THE STAFF HAD STUDIED THE PAYRAISE ISSUE THE TIMING OF SEN MITCHELL'S RESIGNATION IS CLEARLY AN ISSUE HOWEVER MR CUTLER SAID IT WOULD BE LEGALLY POSSIBLE FOR SEN MITCHELL TO REMAIN IN THE SENATE AFTER BEING CONFIRMED AS A JUSTICE BUT HE SAID I DON'T KNOW IF IT WOULD BE POLITICALLY FEASIBLE IT IS OF COURSE SEN MITCHELL'S LIBERAL RECORD THAT PROVIDES CONSERVATIVES WITH THEIR MOST TEMPTING TARGET LIBERAL INTEREST GROUPS HAVE GENERALLY GIVEN HIM STRONG APPROVAL RATINGS INCLUDING A RECENT 95 GRADE FROM AMERICANS FOR DEMOCRATIC ACTION CONVERSELY THE CHAMBER OF COMMERCE GAVE HIM A TEPID 20 APPROVAL RATING HE HAS BEEN A STAUNCH SUPPORTER OF ABORTION RIGHTS SEN MITCHELL BACKS THE PROPOSED FREEDOM OF CHOICE ACT WHICH WOULD EXPAND PROTECTIONS OF ABORTION RIGHTS IN RESPONSE TO RECENT SUPREME COURT DECISIONS NARROWING THEM THE SENATOR ALSO LED THE EFFORT IN CONGRESS AGAINST THE BUSH ADMINISTRATION'S GAG RULE BARRING FEDERALLY FUNDED FAMILYPLANNING CLINICS FROM ADVISING PEOPLE ABOUT ABORTION HE OPPOSES THE DEATH PENALTY AND HAS VOTED AGAINST CURBS ON DEATHROW APPEALS BUT HE HAS VOTED FOR BROADER CRIME BILLS THAT INCLUDE DEATHPENALTY PROVISIONS HE ISN'T A PROPONENT OF GUN CONTROL WHICH IS AN UNPOPULAR ISSUE IN MOSTLY RURAL MAINE THOUGH HE DID HELP WIN PASSAGE OF THE BRADY BILL'S FIVEDAY WAITING PERIOD FOR HANDGUN PURCHASES HE ALSO OPPOSED THE NOMINATIONS TO THE SUPREME COURT OF ROBERT BORK AND CLARENCE THOMAS SEN MITCHELL'S BESTKNOWN FIGHTS WITH CONSERVATIVES HAVE BEEN OVER TAXES HE REPEATEDLY KILLED MR BUSH'S EFFORTS TO CUT CAPITALGAINS TAXES AND INSTEAD PUSHED TO RAISE TAXES ON THE WEALTHIEST AMERICANSA GOAL THAT SAW FRUITION LAST YEAR WHEN SEN MITCHELL HELPED PASS MR CLINTON'S ECONOMIC PROGRAM THE DEMOCRAT IS ALSO KNOWN AS AN ENVIRONMENTALIST AND LED THE DECADELONG FIGHT FOR THE CLEAN AIR ACT THOUGH HIGHLY PARTISAN AS A POLITICIAN MR MITCHELL'S RECORD AS A LAWYER PROSECUTOR AND JUDGE PRIOR TO HIS SENATE ELECTION PROBABLY WON'T SUPPLY FOES WITH MUCH AMMUNITION WITH WHICH TO PAINT HIM AS A JUDICIAL ACTIVIST ACCORDING TO PROF KINVIN WROTH OF THE UNIVERSITY OF MAINE SCHOOL OF LAW WHO HAS FOLLOWED THE SENATOR'S CAREER FOR DECADES SEN MITCHELL HAS A GENUINE JUDICIAL PERSPECTIVE AND TEMPERAMENT ON LEGAL ISSUES AS A JURIST HE WOULD COMBINE A FUNCTIONAL AND PRAGMATIC APPROACH WITH A GENERALLY LIBERAL PHILOSOPHY THE PROFESSOR PREDICTS PEOPLE FAMILIAR WITH SEN MITCHELL'S LEGAL CAREER DESCRIBE HIM AS METICULOUS CAPABLE AND GENUINELY ENTHUSIASTIC ABOUT DELVING INTO COMPLEX CONSTITUTIONAL AND STATUTORY QUESTIONS AFTER 12 YEARS AS A COMMERCIAL LITIGATOR WITH A PORTLAND MAINE FIRM MR MITCHELL WAS NAMED US ATTORNEY FOR MAINE IN 1977 AND THEN SERVED BRIEFLY AS A FEDERAL JUDGE IN 197980 BEFORE GOING TO THE SENATE AS A TRIAL JUDGE ESPECIALLY FOR SO BRIEF A PERIOD HE HAD FEW OPPORTUNITIES TO WRITE LEGAL OPINIONS BUT A PRELIMINARY REVIEW OF HIS JUDICIAL WORK REVEALS A COMPETENT JURIST AND ONE NOT NECESSARILY WEDDED TO LIBERAL RESULTS FOR EXAMPLE IN A 1980 CASE HE REJECTED A SUIT FILED ON BEHALF OF POOR PEOPLE IN MAINE SEEKING INCREASED BENEFITS FROM A FEDERAL ENERGYSUBSIDY PROGRAM THENJUDGE MITCHELL WROTE PLAINTIFFS HAVE URGED UPON THE COURT AN EXPANSIVE INTERPRETATION OF ITS EQUITABLE POWERS THAT THOSE POWERS ARE FORMIDABLE CANNOT BE DOUBTED BUT THEIR VERY SCOPE MANDATES PRUDENCE IN THEIR EXERCISE ALONG WITH THE SUPREME COURT SEN MITCHELL HAS LONG ACKNOWLEDGED HIS INTEREST IN BEING BASEBALL COMMISSIONER THE CLUB OWNERS HAVE REPEATEDLY APPROACHED HIM WITH INCREASINGLY LUCRATIVE OFFERS THEY WANT HIM SAYS SEN COHEN AND THE JOB HAS OBVIOUS ATTRACTIONS FOR SEN MITCHELL AN ARDENT BOSTON RED SOX FAN JEFFREY H BIRNBAUM CONTRIBUTED TO THIS ARTICLE 9404070042 940407 QUARTERLY MUTUAL FUNDS REVIEW LEADING PERFORMERS AREN'T FUNDS THAT JUST ANYBODY RUSHES TO BUY BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL THE AVERAGE JANE'S AND JOE'S MUTUAL FUNDS WEREN'T THE WINNERS IN THE LATEST MUTUALFUND DERBY CGM CAPITAL DEVELOPMENT THE LEADING FUND OVER THE PAST FIVE YEARS IS CLOSED TO NEW INVESTORS THUS THE FUND HAS STAYED SMALL AND NIMBLE ENOUGH TO MAKE LIGHTNINGQUICK CHANGES IN ITS INVESTMENTS TWENTIETH CENTURY GIFTRUST INVESTORS WITH THE BEST 10YEAR RECORD ONLY ALLOWS INVESTMENTS THAT ARE IRREVOCABLE TRUSTS BENEFITING SOME PERSON OR INSTITUTION OTHER THAN THE FUND INVESTOR THE MONEY CAN'T BE WITHDRAWN FOR AT LEAST A DECADE LEAVING THE FUND FREE FROM WORRIES ABOUT HASTY REDEMPTIONS DFA JAPANESE SMALL COMPANY WON'T LET YOU INVEST UNLESS YOU WRITE A CHECK FOR 100000 THAT HELPS KEEP EXPENSES LOW A STRATEGY FOR SUCCESS IN INDEX FUNDS LEXINGTON STRATEGIC INVESTMENTS IS OPEN TO SMALL INVESTORS BUT THE FUND'S BIG SWINGS IT WAS DOWN NEARLY 19 IN THE FIRST THREE MONTHS OF 1994 KEEP MANY POTENTIAL INVESTORS AT BAY ASK REX SINQUEFIELD WHAT'S THE BIGGEST STOCKHOLDING IN DFA JAPANESE SMALL COMPANY'S 280 MILLION PORTFOLIO AND HE HAS A FORTHRIGHT ANSWER I DON'T KNOW MR SINQUEFIELD ISN'T FORGETFUL HE'S JUST AN INDEXFUND MANAGER INDEX FUNDS AVOID STRENUOUS AND IN THEIR VIEW EXPENSIVE EFFORTS TO PICK STOCKS THAT WILL BEAT THE MARKET INSTEAD THEY PASSIVELY INVEST IN A BASKET OF STOCKS PICKED TO REPRESENT A SEGMENT OF THE MARKET DFA JAPANESE INVESTS IN SMALL JAPANESE COMPANIES AND HOLDS MORE THAN 600 STOCKS THE JAPANESE STOCK MARKET GOT CLOBBERED IN 1990 AND 1992 AND SO DID DFA LOSING 333 AND 261 RESPECTIVELY LAST YEAR THE FUND'S 1415 RETURN LAGGED BEHIND FUNDS INVESTING IN MARKETS OF SMALLER DEVELOPING ASIAN NATIONS BUT IN THE FIRST THREE MONTHS OF 1994 THE TABLES TURNED AS THE JAPANESE MARKET LEAPFROGGED PAST OTHER PACIFIC MARKETS SINCE 1970 SMALL STOCKS IN JAPAN HAVE HAD AN ANNUAL RETURN ON AVERAGE OF 2241 BEATING THE 1715 RETURN FOR BIG STOCKS IN JAPAN DFA JAPANESE DOESN'T LEVY A SALES CHARGE DESPITE THE BODY BLOWS LEXINGTON STRATEGIC INVESTMENTS SUFFERED IN THE PAST THREE MONTHS IT STILL HAD THE BEST PERFORMANCE OVER ONE YEAR THE FUND'S DECLINE OF NEARLY 19 IN THE FIRST QUARTER WAS VERY DISAPPOINTING SAYS FUND MANAGER CAESAR BRYAN THE 73 MILLION FUND INVESTS IN SMALL SOUTH AFRICAN MINING STOCKS SUCH AS WESTERN AREAS GOLD MINING ST HELENA AND KINROSS MINES THE PLAY IS GOLD HERE MR BRYAN SAYS THESE ARE THE CHEAPEST GOLD SHARES IN THE WORLD WITH THE STOCK PRICES CURRENTLY AT ABOUT 40 FOR EACH OUNCE OF GOLD RESERVES THAT'S A LOT CHEAPER THAN THE 200 FOR AN OUNCE OF RESERVES AT THE BIGGER NORTH AMERICAN GOLD MINES THE RISK OF COURSE IS THE POLITICAL SITUATION MR BRYAN SAYS PREELECTION POLITICAL VIOLENCE IN SOUTH AFRICA LED TO A DECLINE IN SOUTH AFRICAN SHARES AND ALSO A DECLINE IN THE VALUE OF THE RAND BY CHARTER THE FUND CAN INVEST IN ALL SORTS OF INTERNATIONAL NATURALRESOURCES STOCKS THERE'S HUGE SCOPE FOR DIVERSIFYING AWAY FROM SOUTH AFRICAN MINING STOCKS MR BRYAN SAYS ALTHOUGH SWITCHING THE FUND'S EMPHASIS IS NOT SOMETHING WE WANT TO DO RIGHT NOW DESPITE A TOTAL RETURN OF ALMOST 270 LAST YEAR INCLUDING STOCK PRICE AND REINVESTED DIVIDENDS THE FUND REMAINS ONE OF THE WORSTPERFORMING FUNDS OVER THE PAST 10 YEARS HAVING HAD A LOSS IN THAT PERIOD THE FUND CHARGES A LOAD OR SALES CHARGE OF 575 G KENNETH HEEBNER ALREADY A BIG WINNER IN ECONOMYSENSITIVE STOCKS CONTINUES TO ROLL THE DICE MR HEEBNER LIKES TO MAKE BIG BETS WITH HIS 560 MILLION FUND CGM CAPITAL DEVELOPMENT DESPITE RISING INTEREST RATES MR HEEBNER STILL HAS ABOUT 90 OF THE FUND'S ASSETS IN UNGLAMOROUS CYCLICAL STOCKS THAT SHOULD BENEFIT FROM A STRONG ECONOMIC RECOVERY CGM OWNS A FEW NONCYCLICAL STOCKS MICRON TECHNOLOGIES A COMPUTERCHIP MAKER IS A PLAY ON THE GROWTH OF THE PERSONALCOMPUTER INDUSTRY THE FUND ALSO OWNS SOME BANK STOCKS BECAUSE THEY'RE CHEAP AND THEY'RE HATED MR HEEBNER SAYS I OWN SOME SMALLER REGIONAL BANKS THAT ARE SELLING AT SEVEN OR EIGHT TIMES WHAT THEY'RE GOING TO EARN NEXT YEAR DESPITE EARNINGS GROWTH OF 10 TO 20 A YEAR WHY DOES MR HEEBNER STILL LIKE CYCLICAL STOCKS YOU'RE GOING TO SEE THE STRONGEST GLOBAL ECONOMIC GROWTH IN THE NEXT 24 MONTHS THAT YOU'VE SEEN SINCE WORLD WAR II HE SAYS THAT'S BECAUSE ALMOST ALL OF THE WORLD'S REGIONS ARE EITHER GROWING OR POISED FOR AN UPTURN HE SAYS A HIGHLY UNUSUAL CONFLUENCE OF EVENTS ALTHOUGH CGM IS CLOSED TO NEW INVESTORS MR HEEBNER ALSO RUNS CGM MUTUAL A NOLOAD FUND INVESTING IN STOCKS AND BONDS THIS REMAINS OPEN MR HEEBNER'S FIRM HAS ALSO FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO BRING OUT A FUND INVESTING IN REALESTATE SECURITIES WHILE TWENTIETH CENTURY GIFTRUST HAS THE BEST RECORD FOR ANY STOCK FUND IN THE PAST 10 YEARS NONE OF ITS INVESTORS HAVE EVER MADE ANY MONEY IN THE FUND ALL THE PROFIT IS GOING TO THEIR BENEFICIARIES PARENTS GRANDPARENTS DONORS AND OTHER ALTRUISTIC TYPES PUT THE MONEY INTO THE FUND ON BEHALF OF SOME BENEFICIARY THE INVESTMENT HAS TO STAY IN THE FUND FOR AT LEAST A DECADE OR UNTIL A CHILD REACHES THE AGE OF MAJORITY FREQUENTLY 18 YEARS OLD THE FUND'S UNIQUE STRUCTURE GIVES IT A SIGNIFICANT BENEFIT IN A MARKET ENVIRONMENT LIKE THIS SAYS JAMES STOWERS III HEAD OF THE FUND'S MANAGEMENT TEAM THE REDEMPTIONS ARE ZERO THE TWO OTHER MANAGERS ARE GLENN FOGLE AND JAMES STARK HAVING STABLE CASH FLOWS ALLOWS GIFTRUST TO INVEST IN TINY COMPANIES AND TO AVOID BIG CASH HOLDINGS THAT ARE A DRAG ON RETURNS IN BULL MARKETS THE FUND HOLDS MOSTLY STOCKS WHOSE STOCKMARKET CAPITALIZATIONS STOCK PRICE TIMES SHARES OUTSTANDING ARE LESS THAN 300 MILLION MR STOWERS WON'T GIVE A CURRENT LIST OF TOP HOLDINGS BUT THE FIVE BIGGEST AT THE END OF OCTOBER WERE MICROCHIP TECHNOLOGY ROBERTS PHARMACEUTICAL GENERAL NUTRITION HEALTHFOOD CHAIN CERNER MEDICAL SOFTWARE AND AMERICA ONLINE COMPUTER SERVICES BUT GIFTRUST IS VULNERABLE TO SHARP DROPS IN PRICE DURING MARKET DECLINES THE FUND WAS DOWN 53 IN THE FIRST THREE MONTHS OF 1994 A STEEPER DECLINE THAN MOST SMALLCOMPANY FUNDS HAD GIFTRUST WITH 173 MILLION IN ASSETS DOESN'T CHARGE A LOAD 9404070041 940407 LEISURE & ARTS TV AN ENGLISH CLASSIC ARCHIE'S OLD PLACE AND THE EVIL WEED BY DOROTHY RABINOWITZ A SOFTHEADED AND ARCHLY SENTIMENTAL LOOK AT A FORMER DABBLER IN THE ACTIVIST '60S THIS FILM HAS MAINLY ITS PERFORMANCES TO RECOMMEND IT AMONG THEM THOSE OF KATE NELLIGAN JOHN HEARD AND TOBEY MAGUIRE THIS COULD BE ENOUGH MASTERPIECE THEATRE 'S LEAN SEASON ENDS WITH THE ARRIVAL OF THIS FINE DRAMATIZATION OF GEORGE ELIOT'S NOVEL 1872 OF VICTORIAN ENGLAND NEEDLESS TO SAY THE SERIES IS POSITIVELY STUFFED WITH THE DETAIL AND COLOR CHARACTERISTIC OF MASTERPIECE THEATRE PRODUCTIONS PERHAPS TOO CHARACTERISTIC IF IT ISN'T AGAINST THE LAW TO SUGGEST SUCH A THING IT MIGHT BE NICE AT LEAST IN WORKS AS INTRINSICALLY DRAMATIC AS THIS IF THE BBC PRODUCERS OCCASIONALLY KNOCKED OFF SOME OF THE PROTRACTED SCENE SETTING WITH THE CANTERING HORSES LOWERING SKIES ETC ETC AND GOT ON WITH THE STORY AND A HEARTY DRAMATIC STEW THIS TALE OF THWARTED IDEALISM AND MISBEGOTTEN MATCHES IS ALL SIX PARTS OF IT THE FIRST INTRODUCES YOUNG DOROTHEA BROOKE JULIET AUBREY WHO ASPIRES TO DO SOMETHING MEANINGFUL WITH HER LIFE THE PRAGMATIC IDEALIST HANDSOME DR LYDGATE DOUGLAS HODGE WHO WANTS A NEW HOSPITAL THE SCHOLARLY REV CASAUBON PATRICK MALAHIDE WITH WHOM DOROTHEA FALLS IN LOVE AND EVERYONE ELSE OF CONSEQUENCE IN THE PROVINCIAL TOWN OF MIDDLEMARCH YES LIBERTIES HAVE BEEN TAKEN WITH ELIOT'S WORK BUT THE DIALOGUE STILL GLITTERS IT WOULD BE A PITY IF ANYONE WERE MISLED BY THE OSTENSIBLE SUBJECT OF THIS FILM INTO BYPASSING ONE OF THE MOST SOPHISTICATED AND BRACING MADEFORTV MOVIES TO HAVE COME BY IN A LONG LONG TIME A WORK THAT SEEMS TO PROMISE A STORY ABOUT A MOTHER'S DEVOTION TO AN AUTISTIC SON SUPERBLY PORTRAYED HERE BY MICHAEL GOORJIAN IS BOUND TO RAISE FEARS OF YET ANOTHER SAPPY TVMOVIE VENTURE IN HANDICAP HEROICS IN FACT IT IS A FILM BY BOB RANDALL SO WELLWRITTEN TOUGH FULL OF WIT AND STRANGELY ROMANTIC IN SHORT SO UNCHARACTERISTIC OF THE GENERAL RUN OF TV SCRIPTS IT IS HARD WATCHING IT TO AVOID THE FEELING THAT IT IS GOING TO GO WRONG ANY MINUTE IT NEVER DOES MIRACLES AS THEY SAY SOMETIMES HAPPEN STILL THERE IS NOTHING MYSTICAL ABOUT THE SOURCES OF THE FILM'S STRENGTH PRIME AMONG THEM IN ADDITION TO THE SCRIPT THE RIPPING PERFORMANCES BY KIRSTIE ALLEY STOCKARD CHANNING AND A RICHLY COMPLICATED SAM WATERSTON ARCHIE BUNKER'S OLD HOUSE IS THE SETTING FOR A NEW SOCIAL COMEDY JOHN AMOS PLAYS A BLACK FATHER A TRUE BELIEVER IN ALL THE CANONS OF THE CIVILRIGHTS ESTABLISHMENT IN CONFLICT WITH HIS NEOREPUBLICAN CONSERVATIVE SON GOODIE TE RUSSELL GOODIE IT APPEARS WAS NAMED AFTER HIS FATHER'S HERO THURGOOD MARSHALL WHICH FACT DOESN'T PREVENT HIM FROM BEING AN ARDENT SUPPORTER OF CLARENCE THOMAS THE NICE THING IS THAT IN ADDITION TO THE EXCHANGE OF POLITICAL JABS MOST OF THEM DEFT IF UNSURPRISING THERE ARE ACTUAL LAUGHS TO BE FOUND AROUND 704 HAUSER CATCH FOR INSTANCE MR AMOS'S SAVAGING OF A PREACHER IT MAY BE TOO EARLY TO SAY BUT BETWEEN THE SCRIPT AND THE PERFORMANCES ESPECIALLY THAT OF A BITING LYNNIE GODFREY WHO PLAYS THE FEMALE HEAD OF THIS SPLENETIC PACK NORMAN LEAR COULD BE ON TO SOMETHING GOOD HERE LINDA GRAY STARS IN A FACTBASED FILM CONCERNING THE DEATH OF A COLLEGE STUDENT FORCED TO INGEST A TOXIC QUANTITY OF ALCOHOL DURING A FRATERNITY INITIATION THE NONFICTIONAL MOTHER OF THE YOUNG MAN WHO DIED AS A RESULT OF BEING LOCKED IN A CAR TRUNK AND FORCED TO DRINK A PINT OF BOURBON A FIFTH OF WINE AND A SIXPACK OF BEER DURING THE FRAT RITUAL AT ALFRED UNIVERSITY IN UPSTATE NEW YORK IS EILEEN STEVENS A WOMAN WHO HAS BUSIED HERSELF EVER SINCE TRYING TO GET LAWS PASSED AGAINST HAZING THE FILM MADE OF HER STORY IS MOSTLY STANDARD STUFF TO BE SURE STILL THERE IS NO DENYING THE RAW STRENGTH OF THE DETAILS ESPECIALLY THE PORTRAYAL OF UNIVERSITY ADMINISTRATORS WHO SOUGHT TO CONCEAL AND MISREPRESENT THE FACTS ABOUT THE STUDENT'S DEATH A CAUTIONARY TALE INDEED THE SUBJECT OF THIS NOVA INQUIRY IS SMOKING AND ITS IMPACT IN CHINA WHERE THE HABIT HAS TAKEN HOLD WITH A VENGEANCE THAT KILLS INDEED WE LEARN IN THIS COMPELLING REPORT OF THE TOLL CIGARETTE SMOKING HAS TAKEN IN THE COUNTRY WHERE EVERYONE INCLUDING PHYSICIANS SMOKES AND WHERE THE PRIME CAUSE OF DEATH IS NOW LUNG CANCER ACCORDING TO THE FILM IT IS BECAUSE OF THEIR IDENTIFICATION WITH THE WEST THAT MARLBORO AND KENT CIGARETTES ARE ALL THE RAGE AMONG THE YOUNG MOREOVER FORMER SURGEON GENERAL KOOP IS HERE AMONG OTHERS TO ARGUE THAT IT IS UNCONSCIONABLE TO EXPORT INSTRUMENTS OF DEATH TO OTHER COUNTRIES THE FILM'S REAL POTENCY IF NOT ITS POLITICAL POINT LIES MAINLY IN THE DELIVERY OF THE DAMNING FACTS ABOUT TOBACCO ADDICTION DESCRIBED BY AN AUTHORITY FROM THE IMPERIAL CANCER RESEARCH FUND AT OXFORD AS CAUSING MORE DEATHS FROM CANCER THAN ALL OTHER CAUSES PUT TOGETHER IN SHORT THE DATA HERE IS CHILLING AND NOT ONLY AS REGARDS CHINA 9404070040 940407 INTERNATIONAL BRIEF CITIC PACIFIC LTD HONG KONGBASED COMPANY MAY SPIN OFF TRADING UNIT CITIC PACIFIC LTD A CHINACONTROLLED DIVERSIFIED COMPANY IN HONG KONG THAT HAS INTERESTS IN MOTOR VEHICLES FOODSTUFFS PROPERTY ELECTRIC APPLIANCES AND OTHER PRODUCTS IS CONSIDERING SPINNING OFF ITS TRADING SUBSIDIARY DAH CHONG HONG LTD A PRESS REPORT SAID THE CHINESELANGUAGE HONG KONG ECONOMIC TIMES QUOTED CITIC PACIFIC MANAGING DIRECTOR HENRY FAN HUNG LING AS SAYING IN AN INTERVIEW THAT DAH CHONG HONG HAD RECENTLY TRANSFERRED SEVERAL REDEVELOPMENT PROPERTIES TO CITIC PACIFIC MR FAN TOLD THE PAPER THAT DAH CHONG HONG MAY TRANSFER OTHER PROPERTY INVESTMENTS TO CITIC SO AS TO TRANSFORM DAH CHONG HONG INTO A PURE TRADING FIRM MR FAN ALSO SAID CITIC PACIFIC INTENDED TO DECIDE WHETHER TO SPIN OFF DAH CHONG HONG THIS MONTH OFFICIALS OF CITIC PACIFIC COULDN'T BE REACHED FOR COMMENT 9404070039 940407 INTERNATIONAL BRIEF AB ASTRA SWEDISH DRUG MAKER TO TAKE CONTROL OF JAPANESE VENTURE SWEDISH PHARMACEUTICAL GROUP AB ASTRA SAID IT WILL RAISE ITS STAKE IN JAPANBASED FUJISAWAASTRA TO 90 FROM 51 BY INCREASING ITS STAKE ASTRA WILL TAKE FULL MANAGEMENT CONTROL OF THE COMPANY AND ACQUIRE ALL PRODUCT RIGHTS FOR LOCAL ANESTHETICS FROM FUJISAWA PHARMACEUTICAL CO OF JAPAN ASTRA PAID A TOTAL OF ABOUT 18 BILLION KRONOR 2241 MILLION TO FUJISAWA TO INCREASE ASTRA'S STAKE AND FOR THE PRODUCTS RIGHTS ASTRA SAID THE JAPANESE COMPANY WOULD CONTINUE TO SUPPORT FUJISAWAASTRA BY RENDERING CERTAIN MANUFACTURING DISTRIBUTION AND OTHER SERVICES AFTER MANAGEMENT CONTROL IS TRANSFERRED TO ASTRA FUJISAWAASTRA WAS ESTABLISHED AS A SALES COMPANY BY ASTRA AND FUJISAWA TO MARKET ASTRA PRODUCTS IN JAPAN IT IS THE MARKET LEADER IN THE JAPANESE MARKET FOR LOCAL ANESTHETICS SALES IN 1993 AMOUNTED TO ROUGHLY 19 BILLION KRONOR 9404070038 940407 CREDIT RATINGS ALLEGHENY LUDLUM CORP STANDARD & POOR'S CORP SAID IT PLACED ITS SINGLEAMINUS SUBORDINATED DEBT RATING FOR THE PITTSBURGHBASED STEELMAKER ON CREDITWATCH WITH NEGATIVE IMPLICATIONS THE COMPANY HAD ABOUT 170 MILLION OF DEBT OUTSTANDING AT JAN 2 THE RATINGS AGENCY SAID A PROTRACTED STRIKE BY THE UNITED STEELWORKERS UNION COULD LEAD TO AN EROSION OF THE COMPANY'S MARKET SHARE AND FINANCIAL FLEXIBILITY SOME 3500 USW WORKERS WENT ON STRIKE AGAINST ALLEGHENY LUDLUM FRIDAY AND TUESDAY THE UNION BROKE OFF TALKS WITH THE COMPANY AN ALLEGHENY LUDLUM SPOKESMAN DECLINED TO COMMENT REVCO DS INC TWINSBURG OHIO MOODY'S INVESTORS SERVICE INC CITING REVCO'S PENDING 600 MILLION ACQUISITION OF HOOKSUPERX INC PLACED THE BA1 RATING OF 140 MILLION IN SENIOR NOTES OF THE DRUGSTORE CHAIN UNDER REVIEW FOR POSSIBLE DOWNGRADE THE DEBTRATING CONCERN ALSO PLACED THE BA3 RATING OF 145 MILLION IN SENIOR NOTES OF HOOKSUPERX ON REVIEW FOR POSSIBLE UPGRADE 9404070037 940407 USAIR'S DEBT RATINGS LOWERED BY MOODY'S CITING CUTS IN FARES NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED ITS RATINGS ON ABOUT 25 BILLION OF USAIR GROUP INC'S LONGTERM DEBT SAYING PRICE COMPETITION ON THE CARRIER'S ROUTES MOST LIKELY PORTENDS A CONTINUATION OF POOR OPERATING RESULTS OVER THE FORESEEABLE FUTURE UNTIL USAIR CAN REDUCE ITS COSTS THE RATING AGENCY'S ACTION FOLLOWS A SIMILAR DOWNGRADE LAST MONTH BY STANDARD & POOR'S CORP MOODY'S NOTED THAT ARLINGTON VABASED USAIR HAS BEEN FORCED TO REDUCE FARES SIGNIFICANTLY IN MANY OF ITS MARKETS BECAUSE OF INCREASED COMPETITION FROM CONTINENTAL AIRLINES AND SOUTHWEST AIRLINES THE LATTER ONLY RECENTLY EXPANDED INTO THE EASTERN US MARKET USAIR SERVES IN ADDITION TO THE PRICING PRESSURES MOODY'S SAID THERE IS CONCERN THAT THE COMPANY'S RECENT OPERATING CHANGES DESIGNED TO REDUCE ITS COST STRUCTURE WILL NOT BE SUFFICIENT TO OFFSET THE ANTICIPATED REVENUE LOSSES IT NOTED RESULTS OF TALKS WITH ITS EMPLOYEES IN WHICH USAIR IS SEEKING WAGE AND BENEFIT CONCESSIONS TO REDUCE EXPENSES REMAIN UNCERTAIN MOODY'S REDUCED TO SINGLEB1 FROM BA2 ITS RATINGS ON USAIR INC AND PIEDMONT AVIATION INC EQUIPMENTTRUST AND PASSTHROUGH CERTIFICATES SENIOR DEBENTURES GUARANTEED SENIOR NOTES AND INDUSTRIAL REVENUE BONDS FOR THE USAIR INC AND PIEDMONT UNITS WERE MARKED DOWN TO SINGLEB2 FROM BA3 USAIR GROUP'S PREFERRED STOCK WAS LOWERED TO CAA FROM SINGLEB3 USAIR OFFICIALS COULN'T BE REACHED FOR COMMENT 9404070036 940407 LETTERS TO THE EDITOR GRUMMAN'S FIGHTERS HELPED WIN WWII THE STATEMENT THAT GRUMMAN'S CLAIM TO FAME CAME IN THE JETFIGHTER BUSINESS MARTIN MARIETTA AGREES TO BUY GRUMMAN CORP MARCH 8 MUST HAVE COME AS A GREAT SURPRISE TO THE THOUSANDS OF NAVY AND MARINE PILOTS WHO FLEW GRUMMAN PISTONENGINE FIGHTERS DURING THE 1930S '40S AND '50S THE ARRIVAL OF THE FIRST GRUMMAN FF1S ABOARD THE USS LEXINGTON IN 1933 MARKED THE BEGINNING OF THE COMPANY'S LONG ROLE AS THE PREMIER SUPPLIER OF SHIPBOARD FIGHTERS TO THE NAVY WHICH REACHED ITS ZENITH WITH THE APPEARANCE OF THE SUPERB F6F HELLCAT IN EARLY 1943 BY 1944 THE F6F DOMINATED THE PACIFIC AIR WAR AND WAS THE PRINCIPAL USN PARTICIPANT IN THE FAMOUS MARIANAS TURKEY SHOOT IN MAY OF THAT YEAR DURING WHICH JAPANESE ADMIRAL OZAWA LOST 243 AIRCRAFT AT A US COST OF 22 HELLCATS THAT SOUNDS TO ME VERY MUCH LIKE A REASONABLE CLAIM TO FAME 9404070035 940407 BUSINESS BRIEF INTERSTATE HOTELS CORP COMPANY TO BUY OPERATIONS OF SUBSIDIARY OF CARLSON COS INTERSTATE HOTELS CORP SAID IT AGREED TO ACQUIRE THE BUSINESS OPERATIONS OF COLONY HOTELS & RESORTS INC A UNIT OF CLOSELY HELD CARLSON COS' SUBSIDIARY CARLSON HOSPITALITY GROUP TERMS OF THE ACQUISITION WEREN'T DISCLOSED INTERSTATE HOTELS A CLOSELY HELD PITTSBURGH COMPANY SAID THE AGREEMENT COVERS MANAGEMENT AND FRANCHISE CONTRACTS FOR ALL OF COLONY'S PROPERTIES AS WELL AS THE COLONY NAME AND BUSINESS OPERATIONS COLONY HOTELS & RESORTS OPERATES LUXURY RESORTS HOTELS CONDOMINIUMS AND TIME SHARES IN LOCATIONS THAT INCLUDE HAWAII THAILAND ISRAEL THE WEST INDIES MEXICO AND THE FLORIDA KEYS ITS PARENT IS BASED IN MINNEAPOLIS INTERSTATE HOTELS AN INDEPENDENT HOTEL MANAGEMENT COMPANY MANAGES 80 HOTELS IN THE US AND CANADA 9404070034 940407 PEPPERAND SALT IS SIMPLY NOT MY CUP OF TEA WILL PRICK MORE THAN AN EGO OUCH WOULD FIND THIS ONE COUCH TO AVOID POSTED IN A REMOTE COUNTRY STORE DON'T ASK US FOR INFORMATION IF WE KNEW ANYTHING WE WOULDN'T BE HERE 9404070033 940407 INTERNATIONAL BRIEF CS HOLDING PARENT TO BOOST VOTING STAKE IN CS FIRST BOSTON TO 757 CS HOLDING THE SWISS PARENT OF CREDIT SUISSE AND OTHER BANKING INTERESTS ANNOUNCED IT HAS AGREED TO BOOST ITS STAKE IN CS FIRST BOSTON GIVING IT VOTING CONTROL OF 757 FROM 685 BEFORE CS HOLDING SAID IT REACHED AGREEMENT WITH FIVE OF THE 12 INSTITUTIONAL SHAREHOLDERS IN CS FIRST BOSTON AN INVESTMENT BANKING GROUP THE FIVE WILL SELL THEIR VOTING AND NONVOTING COMMON STOCK IN CS FIRST BOSTON TO CS HOLDING CS HOLDING SAID THE ACQUISITION OF THE ADDITIONAL STAKE IN CS FIRST BOSTON INVOLVES STOCK OR CONVERTIBLE BONDS OF CS HOLDING NO CASH IS INVOLVED THE VALUE OF THE PLANNED TRANSACTION WASN'T DISCLOSED 9404070032 940407 INTERNATIONAL BRIEF SVENSKA CELLULOSA AB SWEDISH FIRM ENDS TALKS TO ACQUIRE OTOR OF FRANCE SWEDISH PULP AND PAPER GROUP SVENSKA CELLULOSA AB OR SCA TERMINATED NEGOTIATIONS AIMED AT ACQUIRING THE FRENCH PACKAGING COMPANY OTOR HOLDING SA SCA SAID IT AND THE PRINCIPAL SHAREHOLDERS OF OTOR FAILED TO AGREE ON THE FINAL TERMS FOR THE ACQUISITION AS A CONSEQUENCE OF THE ABORTED TALKS SCA SAID IT WON'T PROCEED WITH THE ONE BILLION KRONA 1248 MILLION NEWSHARE ISSUE PLANNED TO HELP FINANCE THE PURCHASE SCA ANNOUNCED PLANS TO ACQUIRE 898 OF THE SHARE CAPITAL IN CLOSELY HELD OTOR IN MIDMARCH FOR 239 BILLION KRONOR 9404070031 940407 BUSINESS BRIEF INTERNATIONAL BUSINESS MACHINES COMPANY IS SEEKING TO LEASE PART OF OFFICE IN NEW YORK INTERNATIONAL BUSINESS MACHINES CORP IS SEEKING TO LEASE AS MUCH AS HALF OF THE ONE MILLION SQUARE FEET OF OFFICE SPACE IN ITS MADISON AVENUE SKYSCRAPER AND SAID IT WOULD CONSIDER SELLING THE BUILDING FOR THE RIGHT PRICE AN IBM SPOKESMAN SAID THE ARMONK NY COMPANY HAD BEEN APPROACHED ABOUT SELLING 590 MADISON AVE ADDING THAT IF WE GOT A FABULOUS OFFER WE WOULD CONSIDER SELLING IT THE NEW YORK OBSERVER A WEEKLY MANHATTAN NEWSPAPER REPORTED THIS WEEK THAT IBM HAD PUT THE BUILDING ON THE BLOCK FOR 325 MILLION IBM DECLINED TO COMMENT ON THAT FIGURE THE 43STORY MIDTOWN MANHATTAN TOWER OPENED IN 1983 SERVES AS THE HEADQUARTERS FOR IBM'S NORTHEAST SALES AND MARKETING GROUP IBM HAS BEEN CONSOLIDATING OFFICE SPACE WORLDWIDE TELLING SALES EXECUTIVES TO SPEND MORE TIME ON THE ROAD INSTEAD OF IN THEIR OFFICES