COORS BREWING CO AGREED TO IMPORT STEINLAGER BEER FROM NEW ZEALAND INTO THE US TAKING THE BUSINESS AWAY FROM MOLSON BREWERIES USA INC THE ADOLPH COORS CO UNIT'S AGREEMENT WITH NEW ZEALAND'S LION NATHAN LTD WHICH MAKES STEINLAGER TAKES EFFECT IN JULY COORS DIDN'T ESTIMATE THE VALUE OF THE DISTRIBUTION ACCORD SINCE SEPTEMBER COORS HAS BEEN BREWING FOR US CONSUMPTION ANOTHER LION NATHAN BEER CASTLEMAINE XXXX IN A NEWS RELEASE MOLSON BREWERIES WHICH IS OWNED BY MILLER BREWING CO A UNIT OF PHILIP MORRIS COS SAID IT UNDERSTANDS THAT THE GROWING RELATIONSHIP BETWEEN LION NATHAN AND COORS MAKES THIS STEP A NATURAL ONE FOR THEM THE MILLER UNIT SAID IT SOLD 520000 CASES OF STEINLAGER BEER IN 1993 UP FROM 160000 CASES IN 1986 9404070029 940407 BUSINESS BRIEF SAYETT GROUP INC CONCERN SEES 1STPERIOD LOSS AND DROP IN PROFIT FOR YEAR SAYETT GROUP INC SAID AN ACCELERATION OF RESEARCH AND DEVELOPMENT EXPENDITURES HIGHER MANUFACTURING COSTS AND SLOWER SALES ARE EXPECTED TO CAUSE A FIRSTQUARTER LOSS AND LOWER EARNINGS FOR THE YEAR SAYETT WHICH DESIGNS MAKES AND DISTRIBUTES HIGHTECH PROJECTION EQUIPMENT SAID THE HIGHER COSTS ARE RELATED TO TWO COMPACT PROJECTOR PROJECTS ADDITIONAL MANUFACTURING EXPENSES FOR SMALL LIQUID CRYSTAL DISPLAYS WITH VIDEO CAPABILITIES AND EXPENDITURES FOR THE DEVELOPMENT OF HEADMOUNTED COMPUTER DISPLAYS IN 1993 ROCHESTER NYBASED SAYETT SPENT 609000 ON RESEARCH AND DEVELOPMENT AND EARNED 715000 OR 12 CENTS A SHARE ON 86 MILLION IN SALES WE ARE CONFIDENT THAT INCREASED R&D EXPENDITURES WILL RESULT IN HIGHER REVENUES AND EARNINGS FOR SAYETT GROUP IN THE LONG RUN ONCE NEW TECHNOLOGICAL DEVELOPMENTS ARE INCORPORATED INTO COMMERCIALLY SUCCESSFUL IMAGING AND INFORMATION DISPLAY PRODUCTS THE COMPANY SAID 9404070028 940407 BUSINESS BRIEF VALENCE TECHNOLOGY INC RESEARCH WITH GM DIVISION TESTING BATTERIES IS RENEWED GENERAL MOTORS CORP'S DELCO REMY DIVISION PLANS TO RENEW A RESEARCHANDDEVELOPMENT AGREEMENT WITH VALENCE TECHNOLOGY INC SAN JOSE CALIF UNDER WHICH DELCO REMY IS EVALUATING VALENCE'S NEW BATTERY TECHNOLOGY FOR USE IN ELECTRIC VEHICLES VALENCE AND DELCO REMY ARE NEARING THE END OF A THREEYEAR R&D CONTRACT ALTHOUGH NEW TERMS HAVEN'T BEEN SET THE PACT IS EXPECTED TO BE RENEWED FOR TWO TO THREE YEARS DURING WHICH DELCO WOULD PRODUCE VALENCE'S LITHIUM POLYMER BATTERIES IN THE GM DIVISION'S RESEARCH FACILITY IN INDIANAPOLIS FOR EVENTUAL TESTING IN PROTOTYPE VEHICLES GM IS BASED IN DETROIT THIS IS A MAJOR STEP FORWARD IN MOVING LITHIUM POLYMER TECHNOLOGY INTO THE AUTO ARENA CALVIN L REED VALENCE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID RESEARCH ALSO COULD LEAD TO DEVELOPING AN IGNITION BATTERY THAT WEIGHS LESS AND LASTS LONGER THAN THE CONVENTIONAL LEADACID BATTERIES HE ADDED 9404070027 940407 BUSINESS BRIEF SUN MICROSYSTEMS INC THIRDPERIOD NET IS BELOW EXPECTATIONS OF ANALYSTS SUN MICROSYSTEMS INC WHOSE STOCK WAS HAMMERED THIS WEEK FOLLOWING ITS WARNINGS OF LOWERTHANEXPECTED REVENUE REPORTED THIRDQUARTER EARNINGS THAT FELL BELOW ANALYSTS' EXPECTATIONS NET FOR THE PERIOD WAS 575 MILLION OR 60 CENTS A SHARE UP 11 FROM YEAREARLIER NET OF 517 MILLION OR 47 CENTS A SHARE REVENUE WAS 119 BILLION UP 48 FROM 114 BILLION A YEAR EARLIER SUN SAID IT WILL RELEASE FULL RESULTS APRIL 12 ANALYSTS HAD EXPECTED THE MOUNTAIN VIEW CALIF WORKSTATION MAKER TO REPORT NET OF 66 CENTS A SHARE ACCORDING TO A MEAN ESTIMATE FROM THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM AND BEFORE MARCH 31 WHEN SUN DISCLOSED THAT THE QUARTER'S TOP LINE HAD SUFFERED FROM A SLUMP IN WORKSTATION ORDERS ANALYSTS HAD EXPECTED A 10 GAIN IN REVENUE SUN ANNOUNCED THE RESULTS AFTER THE MARKET CLOSE YESTERDAY IN TRADING ON THE NASDAQ STOCK MARKET SUN STOCK CLOSED AT 2225 UNCHANGED 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 9404070026 940407 LAWYERS SAY STUDY SHOWS DOW CORNING KNEW OF IMPLANT RISK CHICAGO LAWYERS FOR WOMEN WITH SILICONE BREAST IMPLANTS SAY THEY HAVE TURNED UP AN INTERNAL DOW CORNING CORP STUDY SHOWING THE MANUFACTURER KNEW IN 1975 THAT A CHEMICAL COMPONENT OF SILICONE GEL COULD ACTIVATE THE IMMUNE SYSTEM OF LABORATORY ANIMALS THE FINDING COULD BE SIGNIFICANT IN THAT MANY WOMEN ALLEGE THAT THEIR IMMUNESYSTEM ILLNESSES WERE CAUSED BY SILICONE DOW CORNING AND OTHER COMPANIES CONTINUE TO MAINTAIN THERE IS NO SUCH LINK RALPH I KNOWLES JR A LEADING ATTORNEY FOR PLAINTIFFS IN SILICONE LITIGATION DESCRIBED THE 1975 STUDY AS ESPECIALLY SIGNIFICANT BECAUSE IT SHOWS THAT DOW CORNING NEARLY 20 YEARS AGO KNEW THAT SILICONE GEL CONTAINS A MATERIAL THAT CAN ACTIVATE THE IMMUNE SYSTEM MR KNOWLES FURTHER CONTENDED THAT DOW CORNING HAS DENIED THAT ANY SUCH STUDY EXISTED AND ADDED THEY DID NOT TURN OVER THE STUDY TO THE FOOD AND DRUG ADMINISTRATION AMONG MATERIALS THE AGENCY HAD REQUESTED DEALING WITH SILICONEIMPLANT SAFETY WHILE DOW CORNING AND OTHER MANUFACTURERS HAVE AGREED TO A SETTLEMENT OF SILICONE LITIGATION THE STUDY COULD AFFECT INDIVIDUAL LAWSUITS A DOW CORNING SPOKESWOMAN BARBARA CARMICHAEL DISPUTED THE CONCLUSIONS OF THE PLAINTIFFS' LAWYERS AND MR KNOWLES'S CONTENTION THAT THE FDA HADN'T BEEN NOTIFIED WE SENT TO THE FDA ON MARCH 10 1993 MATERIALS SUMMARIZING ALL OF THE EXISTING RESEARCH SHE SAID IT INCLUDED THIS STUDY MOREOVER SHE CONTENDED THE CHEMICAL COMPONENT AT ISSUE D4 IS PRESENT IN SILICONEGEL BREAST IMPLANTS ONLY IN A TRACE AMOUNT AND THAT THE MOUSE STUDY SHOWED A MARGINAL EFFECT ON THE IMMUNE SYSTEM ONLY AT AN EXTREMELY HIGH DOSE DOW CORNING A MIDLAND MICH JOINT VENTURE OF DOW CHEMICAL CO AND CORNING INC WAS FOR DECADES THE LEADING MANUFACTURER OF SILICONE PRODUCTS INCLUDING SILICONEGEL BREAST IMPLANTS IT HAS SINCE STOPPED MAKING THE IMPLANTS AND THE FDA HAS GREATLY RESTRICTED THE DEVICES' SALE IN THE US 9404070025 940407 BUSINESS BRIEF CIRCUIT CITY STORES INC ELECTRONICS RETAILER'S PROFIT ROSE 11 IN ITS 4TH QUARTER CIRCUIT CITY STORES INC SAID FISCAL FOURTHQUARTER EARNINGS ROSE 11 BECAUSE OF HIGHER SALES FOR THE QUARTER ENDED FEB 28 THE RICHMOND VA ELECTRONICS AND APPLIANCES RETAILER SAID NET INCOME WAS 677 MILLION OR 70 CENTS A SHARE UP FROM 608 MILLION OR 63 CENTS A SHARE A YEAR AGO SALES ROSE 28 TO 141 BILLION FROM 110 BILLION LAST YEAR THE COMPANY SAID NET PROFIT MARGIN WAS 48 COMPARED WITH 55 A YEAR EARLIER WE EXPECT THAT COMPETITION IN OUR CATEGORIES WILL CONTINUE TO INCREASE IN FISCAL 1995 SAID RICHARD L SHARP PRESIDENT AND CHIEF EXECUTIVE OFFICER EXPANSION AND MARKETING WILL PRODUCE SALES GROWTH BUT THE ASSOCIATED COSTS WILL LIMIT EARNINGS GROWTH IN FISCAL 1995 HE SAID FOR MARCH SALES ROSE 32 TO 3467 MILLION FROM 2632 MILLION A YEAR EARLIER 9404070024 940407 BUSINESS BRIEF SULCUS COMPUTER CORP COMPANY WILL RECLASSIFY ITS 1992 ACQUISITION COSTS SULCUS COMPUTER CORP SAID IT IS RECLASSIFYING 12 MILLION IN 1992 ACQUISITION COSTS AS OPERATING EXPENSES CUTTING PRETAX INCOME FOR THAT YEAR AS PART OF A SECURITIES AND EXCHANGE COMMISSION INVESTIGATION SULCUS A GREENSBURG PA COMPUTER SYSTEM DEVELOPER SAID THE ACTION STEMS FROM DISCUSSIONS WITH THE SEC REGARDING ACCOUNTING OF INCOME TAXES AND VARIOUS TRANSACTIONS MAINLY RELATED TO 1992 ACQUISITIONS IN 1992 SULCUS EARNED 52 MILLION OR 42 CENTS A SHARE ON 383 MILLION IN REVENUE SULCUS ALSO SAID YEAREND ACCOUNTING ADJUSTMENTS AND CHANGES SIMILAR TO ACQUISITION EXPENSES IN 1992 COULD CAUSE A 1993 LOSS OF AS MUCH AS 500000 SULCUS ALSO EXPECTS A ONETIME CHARGE OF 2 MILLION TO COVER THE SETTLEMENT OF LAWSUITS CHARGING SOME OFFICERS AND DIRECTORS WITH INSIDER TRADING FRAUD AND RELATED WRONGDOING 9404070023 940407 QUARTERLY MUTUAL FUNDS REVIEW MUTUAL FUNDS' BULL SKIDS DOWNHILL IN QUARTER BY SARA CALIAN EASY COME EASY GO STOCK MUTUAL FUNDS SLUMPED AFTER LAST YEAR'S SPECTACULAR FINISH AND LOST 333 IN THE FIRST QUARTER RATTLING INVESTORS WHO HAD GROWN COMPLACENT BUT STOCK FUNDS DIDN'T HAVE IT AS ROUGH AS LONGTERM BOND FUNDS WHICH COULD BE IN FOR ANOTHER ROUGH QUARTER EVEN THOUGH STOCK FUNDS TURNED IN THEIR WORST QUARTER IN 3 1/2 YEARS THEY HELD UP BETTER THAN THE STANDARD & POOR'S 500STOCK INDEX WHICH FELL 379 INCLUDING DIVIDENDS THE QUARTER'S SETBACK LEAVES HOLDERS OF DIVERSIFIED STOCK FUNDS AHEAD 543 FOR THE 12 MONTHS THROUGH MARCH BUT MUTUALFUND SHAREHOLDERS WERE STARTLED BY THE SWIFTNESS OF THEIR FUNDS' SLIDE FROM A LATEJANUARY PEAK IT WAS A BIG REVERSAL SAYS KURT BROUWER PRESIDENT OF BROUWER & JANACHOWSKI A SAN FRANCISCO INVESTMENT ADVISER AFTER GREAT PERFORMANCES LAST YEAR PRETTY MUCH EVERYTHING HAS TAKEN A SHOT IN THE FIRST QUARTER SOME OF THE HARDESTHIT STOCK FUNDS WERE IN AREAS THAT RECEIVED THE BIGGEST CASH INFLOWS FROM INVESTORS AFTER POSTING STAR PERFORMANCES LAST YEAR AMONG THE BIGGER LOSERS IN THE QUARTER WERE EMERGINGMARKETS FUNDS DOWN 751 AND LATIN AMERICAN FUNDS WITH A 265 LOSS THE PACIFIC REGION FUNDS DIVED 1151 TO BECOME THE PERIOD'S BIGGEST LOSER OVERALL THE STOCK FUNDS SPRINKLED WITH FASTGROWING COMPANIES DROPPED MORE SHARPLY THAN THE BARGAINHUNTING CROWD KNOWN AS VALUE FUNDS IN A DECLINE TRIGGERED BY HIGHER INTEREST RATES YOU WOULD EXPECT TO FIND HIGHGROWTH STRATEGIES TAKING THE MOST PUNISHMENT SAYS A MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL SERVICES INC OF SUMMIT NJ WHICH COMPILED THE DATA FOR THIS REPORT UP UNTIL THE FIRST WEEK OF FEBRUARY WHEN THE FEDERAL RESERVE RAISED SHORTTERM INTEREST RATES FOR THE FIRST TIME IN FIVE YEARS STOCK FUNDS WERE HUMMING ALONG NICELY BUT AFTER THE FED MOVE FUND RETURNS CAME TUMBLING DOWN IN THE FIRST QUARTER THERE WAS A FLIPFLOP IN THE MIDDLE SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER IN CHICAGO THE QUARTER STARTED OUT STRONG THEN THERE WAS A BLOODBATH IN THE LAST TWO WEEKS NATURALRESOURCES FUNDS WERE SAILING ALONG WITH A 669 GAIN BEFORE THE EARLY FEBRUARY RATE INCREASE ONLY TO DIVE 965 FROM THAT POINT THROUGH THE REST OF THE QUARTER ENVIRONMENTAL FUNDS WERE UP 579 THEN SANK 1002 IN THE FINAL TWO MONTHS MANY FUNDS INVESTING OUTSIDE THE US JOINED THE AMERICAN FUNDS ON THE SEESAW FUNDS IN EMERGING MARKETS RALLIED 519 IN THE QUARTER'S FIRST MONTH AND LOST 1197 IN THE FINAL TWO MONTHS LATIN AMERICAN FUNDS ZIPPED AHEAD 1272 THEN SLIPPED 1364 FROM THE QUARTER'S PEAK INTERNATIONAL FUNDS FORGED AHEAD 648 BUT THEN FELL BACK 7 IN THE MIDST OF THE DOWNTURN FOUR AREAS POSTED GAINS IN THE QUARTER JAPANESE STOCK FUNDS WERE THE BIGGEST WINNERS WITH A RETURN OF 1726 AS JAPAN'S STOCK MARKET SURGED AHEAD WHILE NEIGHBORING PACIFIC MARKETS SLID THE ONLY OTHER STOCKFUND GROUPS THAT POSTED POSITIVE RETURNS WERE THOSE INVESTING IN SCIENCE AND TECHNOLOGY UP 127 THE EUROPEAN REGION AHEAD 109 AND REAL ESTATE UP 081 THE QUEASY QUARTER COMES JUST AFTER RECORD INFLOWS OF MONEY INTO STOCK FUNDS BEGAN TAPERING OFF THE DRAB QUARTER WAS THE SCENE OF THE WORST STOCKMARKET CORRECTION SINCE 1990 AFTER THE IRAQI INVASION OF KUWAIT INSTEAD OF WAR THIS TIME AROUND IT WAS INTERESTRATE INCREASES THAT PROPELLED THE STOCK MARKET'S WOES BOND YIELDS BEGAN RISING IN EARLY FEBRUARY AND BOND PRICES TOOK A POUNDING ALONG WITH STOCK PRICES NEAR THE END OF THE QUARTER FOR THE FIRST TIME MANY NEW MUTUALFUND INVESTORS ARE TRYING TO ABSORB A LOSS FOR A QUARTER AFTER A YEAR OF EXTRAORDINARY GAINS IT'S BEEN A REAL WAKEUP CALL FOR A LOT OF INVESTORS SAYS ROBERT MARKMAN OF MARKMAN CAPITAL MANAGEMENT A FINANCIAL ADVISORY FIRM IN MINNEAPOLIS IT'S GOING TO BE A REAL SPOTTY MARKET WHETHER IT DROPS ANOTHER 15 OR NOT ONE THING THAT IS GOING TO CONTINUE IS THE HEEBIEJEEBIES INVESTORS NEED TO FIGURE OUT HOW MUCH PAIN THEY CAN TAKE ANALYSTS SAY THIS IS A GOOD REALITY CHECK AND INVESTORS SHOULD USE THIS AS AN OPPORTUNITY TO ASSESS THEIR RISK TOLERANCE SAYS KENNETH GREGORY EDITOR OF NOLOAD FUND ANALYST AN ORINDA CALIF NEWSLETTER REASSESSING ISN'T THE SAME THING AS PANICKING MR GREGORY STILL RECOMMENDS THAT INVESTORS HAVE 40 TO 50 OF THEIR STOCKHOLDINGS IN DIVERSIFIED INTERNATIONAL STOCK FUNDS IN THE US HE STILL LIKES SMALL STOCKS WHICH MIGHT GET HAMMERED HARDER IN A MARKET DECLINE BUT WHICH HE THINKS ALSO HAVE A LOT OF GROWTH POTENTIAL OVER THE NEXT FEW YEARS SMALLER COMPANIES ALSO HAVE MORE EARNINGS MOMENTUM IN AN IMPROVING ECONOMY AND THEIR STOCK PRICES ARE MORE REASONABLE THAN BIG STOCKS' HE SAYS PORTFOLIO MANAGERS ARE BRACING FOR THE REST OF THE YEAR RICHARD WEISS A MUTUALFUND MANAGER AT STRONG/CORNELIUSON CAPITAL MANAGEMENT IN MILWAUKEE IS FINDING SOME STOCKS TO BUY IN THE AREAS OF ENERGY AND THE MARKETS IN AUSTRALIA AND NEW ZEALAND BUT IT'S JUST GOING TO BE A TOUGH YEAR HE WARNS I'M TELLING EVERYBODY TO JUST HANG IN THERE THE CURRENT QUARTER'S MUTUALFUND PERFORMANCE MAY DEPEND HEAVILY ON HOW MUTUALFUND INVESTORS THEMSELVES BEHAVE CHARLES BIDERMAN EDITOR OF A MARKET NEWSLETTER IN SANTA ROSA CALIF SAYS A LOT OF MONEY HAS FLOWED OUT OF STOCK AND BOND FUNDS IN THE LAST FEW DAYS IF THE LITTLE GUYS PULL OUT THERE WILL BE LESS MONEY IN THE MARKET AND PRICES WILL FALL FURTHER 9404070022 940407 BUSINESS BRIEF MOLSON COS CANADIAN BREWER WILL CLOSE PLANT TO DECREASE CAPACITY MOLSON BREWERIES CANADA'S LARGEST BEER MAKER SAID IT WILL CLOSE ONE OF ITS NINE BREWING PLANTS TO REDUCE CAPACITY THE MOVE COMES AS MOLSON HAS BEEN LOSING MARKET SHARE MAINLY TO RIVAL JOHN LABATT LTD ALSO BEER CONSUMPTION IN CANADA HAS BEEN DECLINING FOR SEVERAL YEARS ALTHOUGH IT WAS FLAT LAST YEAR BOTH COMPANIES ARE BASED IN TORONTO MOLSON SAID CLOSURE OF ITS BREWERY IN CALGARY ALBERTA WILL ELIMINATE ABOUT 57 OF THE COMPANY'S ANNUAL CAPACITY OF 14 MILLON HECTOLITERS OR 364 MILLION GALLONS OF BEER A MOLSON SPOKESMAN SAID THE CALGARY PLANT HAS BEEN RUNNING AT 50 OF CAPACITY THE CALGARY PLANT DUE TO CLOSE BY OCTOBER HAS 125 EMPLOYEES MOLSON BREWERIES IS OWNED 40 EACH BY MOLSON COS AND FOSTER'S BREWING GROUP LTD OF AUSTRALIA AND 20 BY MILLER BREWING CO A UNIT OF PHILIP MORRIS COS 9404070021 940407 BUSINESS BRIEF GENERAL MOTORS CORP HUGHES AIRCRAFT UNIT NEARS PACT FOR WORK IN INDONESIA HUGHES AIRCRAFT CO IS NEAR AN AGREEMENT TO INSTALL A 500 MILLION CELLULAR TELEPHONE SYSTEM FOR HOMES AND BUSINESSES IN INDONESIA THE LOS ANGELES COMPANY SAID THE UNIT OF GENERAL MOTORS CORP IS STILL IN FINAL NEGOTIATIONS THAT COULD ALTER THE TOTAL VALUE BEING PLACED ON THE CONTRACT BY INDONESIAN OFFICIALS SAID A SPOKESMAN FOR HUGHES NETWORK SYSTEMS THE SYSTEM WOULD ULTIMATELY SERVE 500000 SUBSCRIBERS IN EIGHT CITIES IT WOULD BE THE LARGEST OF THOSE SYSTEMS HUGHES HAS AGREED TO INSTALL IN UNDERSERVED AREAS THAT NEED SPECIAL CELLULAR SYSTEMS FOR HOME AND OFFICE SERVICE AS IMPROVED SYSTEMS USING LAND LINES WOULD BE TOO COSTLY AND WOULD TAKE TOO LONG TO INSTALL THE COMPANY ALREADY HAS CONTRACTS TO PLACE THE SYSTEMS IN PARTS OF CHINA AND THE FORMER SOVIET UNION FINAL CONTRACT TERMS ARE EXPECTED TO BE SET BY THE END OF APRIL 9404070020 940407 BUSINESS BRIEF HONDA MOTOR CO VEHICLES RECALLED TO REPAIR TRANSMISSIONSHIFT PROBLEM HONDA MOTOR CO TOKYO SAID IT IS RECALLING 191000 VEHICLES TO FIX A POSSIBLE DEFECT IN THE AUTOMATICTRANSMISSIONSHIFT MECHANISM WHICH COULD CAUSE THE VEHICLE TO MOVE UNEXPECTEDLY OR NOT AT ALL THE RECALL INVOLVES 199294 MODELYEAR HONDA CIVIC COUPES SEDANS AND HATCHBACKS 1993 DEL SOLS AND 1994 ACURA INTEGRA COUPES AND SEDANS WITH AUTOMATIC TRANSMISSIONS MOST OF THE RECALLED VEHICLES ARE 1993 CIVICS AFTER REPEATED SHIFTLEVER OPERATIONS A RETAINING CLIP CONNECTING THE TRANSMISSIONSHIFT CABLE TO THE SHIFTLEVER ACTUATING ROD MAY HAVE INSUFFICIENT RETENTION FORCE AND FALL OFF THIS COULD RESULT IN THE SHIFTLEVER POSITION NOT MATCHING THE ACTUAL GEAR POSITION CAUSING UNANTICIPATED VEHICLE MOVEMENT OR NO MOVEMENT HONDA SAID THERE HAVE BEEN NO ACCIDENTS OR INJURIES FROM THIS CONDITION 9404070019 940407 WHAT'S NEWS WORLDWIDE CLINTON PRAISED JUSTICE BLACKMUN AND VOWED TO NAME A WORTHY SUCCESSOR THE SUPREME COURT JUSTICE ANNOUNCED HIS RETIREMENT AFTER 24 YEARS ON THE HIGH COURT THE PRESIDENT CITED BLACKMUN'S PASSIONATE DEFENSE OF THE RIGHTS OF ORDINARY CITIZENS AND SAID IT WOULD BE HARD TO REPLACE HIM THE SHOES ARE LARGE THE ROLE THAT HE HAS FILLED ON THIS COURT IS TERRIBLY IMPORTANT CLINTON SAID WHITE HOUSE AIDES EMPHASIZED THAT IT COULD BE SEVERAL WEEKS BEFORE CLINTON ANNOUNCES A NOMINEE BUT MOST ATTENTION FOCUSED ON SENATE MAJORITY LEADER MITCHELL MITCHELL COULD BE EXPECTED TO WIN EASY CONFIRMATION WHITE HOUSE OFFICIALS SAID BUT HE MAY BE NEEDED IN THE SENATE TO HELP GAIN APPROVAL OF CLINTON'S HEALTHCARE REFORMS LATER THIS YEAR TWO AFRICAN PRESIDENTS DIED IN A PLANE CRASH IN RWANDA'S CAPITAL THE PRESIDENTS OF RWANDA AND BURUNDI WERE KILLED WHEN THEIR PLANE WENT DOWN AS IT WAS APPROACHING THE AIRPORT IN KIGALI RWANDAN DIPLOMATS ALLEGED THAT THE PLANE WAS SHOT DOWN AND WITNESSES REPORTED HEARING HEAVYWEAPONS FIRE PRESIDENTS HABYARIMANA OF RWANDA AND NTAYAMIRA OF BURUNDI WERE RETURNING FROM TANZANIA WHERE REGIONAL LEADERS HAD MET TO DISCUSS ETHNIC TENSIONS IN THE TWO NATIONS BOTH OF THE EASTCENTRAL AFRICAN COUNTRIES HAVE SUFFERED FROM REPEATED CLASHES BETWEEN MEMBERS OF THE RIVAL HUTU AND TUTSI GROUPS A SUICIDE CAR BOMBER BLEW UP A BUS IN THE TOWN OF AFULA IN NORTHERN ISRAEL KILLING EIGHT PEOPLE INCLUDING FOUR TEENAGERS AND WOUNDING ABOUT 50 A CALLER TO A WESTERN NEWS AGENCY SAID THE MILITANT ISLAMIC GROUP HAMAS USED 385 POUNDS OF EXPLOSIVES IN THE ATTACK IN WASHINGTON THE US URGED PLO LEADER ARAFAT TO CONDEMN THE BOMBING BOSNIAN SERBS PROPOSED TALKS ON A BROAD TRUCE WITH THE MUSLIMLED GOVERNMENT AFTER STOPPING THE UN COMMANDER IN BOSNIA FROM VISITING THE EMBATTLED GORAZDE ENCLAVE SERB FORCES CONTINUED TO SHELL THE TOWN WOUNDING 10 PEOPLE THE UN SAID OVER THE PAST NINE DAYS SERB FORCES HAVE PLUNGED DEEP INTO THE EASTERN REGION THE CLINTON ADMINISTRATION SENT US MEDIATOR CHARLES REDMAN BACK TO THE BALKANS AND SAID WASHINGTON WAS PREPARED TO THREATEN SERBS WITH NATO AIR STRIKES TO PROTECT ANY UKRAINIAN UN PEACEKEEPERS DISPATCHED TO GORAZDE JAPAN'S HOSOKAWA CALLED A LATENIGHT NEWS CONFERENCE TO QUASH A REPORT BY TWO LEGISLATORS THAT HE TOLD THEM HE WANTS TO RESIGN SOME OF THE PRIME MINISTER'S SUPPORTERS CONCEDE HE PROBABLY MADE THE REMARK BUT ADDED THAT HE WOULD HAVE DONE SO ONLY IN JEST MEXICAN AUTHORITIES REPORTEDLY SEIZED THE SIXTH OF SEVEN CURRENT SUSPECTS IN THE ASSASSINATION OF RULINGPARTY PRESIDENTIAL CANDIDATE COLOSIO OFFICIALS CONTINUED TO EXPLORE THEORIES ABOUT HOW THE SLAYING WAS CARRIED OUT RUSSIA INFORMED ESTONIA IT IS NO LONGER PREPARED TO REMOVE EXSOVIET TROOPS FROM THE BALTIC STATE BY THE END OF AUGUST ACCORDING TO THE ESTONIAN FOREIGN MINISTRY THE TWO COUNTRIES AGREED LAST SUMMER ON THE WITHDRAWAL DEADLINE BUT MOSCOW RECENTLY REVIVED ITS DEMAND FOR A 23 MILLION PAYMENT FROM ESTONIA MANDELA REJECTED ANY DELAY IN BALLOTING IN NATAL PROVINCE SAYING THE SOUTH AFRICAN ARMY IS CAPABLE OF STEMMING UNREST THERE PRIOR TO THE COUNTRY'S ALLRACE VOTE ON APRIL 2628 THE AFRICAN NATIONAL CONGRESS LEADER ADDRESSED A CONFERENCE IN NATAL AS THE ARMY SENT IN 700 ADDITIONAL SOLDIERS BRINGING THE TOTAL FORCE IN THE REGION TO ABOUT 2000 BRITAIN AND AN IRA OFFICIAL DENIED THAT THE TWO SIDES WERE CONDUCTING ANY SECRET PEACE TALKS ON THE FIRST DAY OF A 72HOUR IRA TRUCE IN NORTHERN IRELAND BRITAIN AND IRELAND HAVE BOTH EMPHASIZED THAT THE IRISH REPUBLICAN ARMY MUST RENOUNCE ALL VIOLENCE IN ORDER FOR ANY TALKS TO PROCEED HAITI'S EXILED LEADER ARISTIDE HAS GIVEN THE CLINTON ADMINISTRATION SIX MONTHS' NOTICE THAT HE INTENDS TO END A TREATY ALLOWING THE US TO STOP FLEEING HAITIAN REFUGEES AT SEA AND RETURN THEM HOME DRUG SMUGGLERS ARE EVADING US CURRENCYREPORTING LAWS BY SHIPPING BILLIONS OF DOLLARS OUT OF THE COUNTRY ACCORDING TO A SENATE SUBCOMMITTEE'S REPORT OVER 25 CRIMINAL ORGANIZATIONS HAVE BEEN FOUND MAILING CASH THROUGH A SINGLE EAST COAST AIRPORT 9404070018 940407 BUSINESS BRIEF PNC BANK ESTIMATES FIRSTQUARTER PROFIT EXCEEDED ESTIMATES PITTSBURGH PNC BANK CORP CHAIRMAN THOMAS H O'BRIEN SAID FIRSTQUARTER PROFIT SHOULD BEAT CONSENSUS ESTIMATES OF 76 CENTS A SHARE IN THE 1993 FIRST QUARTER THE PITTSBURGH BANK EARNED 167 MILLION OR 70 CENTS A SHARE INCLUDING 194 MILLION IN CHARGES FROM ACCOUNTING CHANGES OUR EARNINGS ARE REAL STRONG MR O'BRIEN TOLD DOW JONES ADDING THAT NET INTEREST MARGINS ARE BETTER THAN WE HAD FORECAST AND NONINTEREST INCOME IS GOOD LOAN DEMAND IS STARTING TO PICK UP ANNUALIZED IT'S 9 TO 10 ACROSS ALL OUR CONSUMER SEGMENTS MARCH WAS REALLY STRONG MR O'BRIEN SAID THE BANK IS COMFORTABLE WITH ANALYSTS' 1994 ESTIMATES OF PROFIT OF ABOUT 325 A SHARE IN 1993 PNC POSTED NET INCOME OF 7259 MILLION OR 304 A SHARE AFTER ACCOUNTING CHANGES PNC'S STOCK HAS BEEN PUMMELED DURING THE PAST YEAR DOWN 24 FROM ITS 52WEEK HIGH IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY PNC WAS UNCHANGED AT 2750 MR O'BRIEN SAID INVESTORS ARE CONFUSED ABOUT THE BANK'S FINANCIAL PICTURE BECAUSE THE MERGERS AND ACQUISITIONS WE CLOSED IN THE LAST SIX MONTHS MAKE IT DIFFICULT TO FIGURE OUT HOW WE'RE REALLY DOING MR O'BRIEN SAID LAST YEAR PNC ACQUIRED SEARS ROEBUCK & CO'S MORTGAGEBANKING UNIT QUADRUPLING THE BANK'S MORTGAGESERVICING BUSINESS AND MAKING IT ONE OF THE NATION'S TOP MORTGAGELOAN ORIGINATORS PNC WANTS TO EXPAND ITS CONSUMER FINANCIAL SERVICES POSSIBLY THROUGH A JOINT VENTURE WITH A MUTUALFUND COMPANY THE BANK WHICH HAS 62 BILLION IN ASSETS ALSO WANTS TO GROW BY ACQUIRING THRIFTS AND OTHER BANKS MR O'BRIEN SAID EXPANDING IN MARYLAND VIRGINIA AND WESTWARD TO CHICAGO 9404070017 940407 QUARTERLY VARIABLE ANNUITIES REVIEW NEW TABLE SPOTLIGHTS RETURNS ON ANNUITIES BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL THINKING OF INVESTING IN A VARIABLE ANNUITY OR DO YOU ALREADY OWN ONE AND WONDER HOW IT STACKS UP UNTIL NOW IT HASN'T BEEN A CINCH TO FIND EASYTOUSE INFORMATION ON VARIABLE ANNUITIES A BOOMING CORNER OF THE FUND BUSINESS THAT TODAY HOLDS NEARLY 160 BILLION OF INVESTORS' MONEY BUT STARTING TODAY THE WALL STREET JOURNAL IS LAUNCHING THE QUARTERLY VARIABLE ANNUITY FUNDS REPORT BASED UPON DATA FROM MORNINGSTAR INC CHICAGO THIS REPORT ON PAGE R12 COVERS 817 FUNDS IN 136 ANNUITIES SEE ACCOMPANYING TABLES WSJ APRIL 7 1994 IT PROVIDES PERFORMANCE AND OTHER INFORMATION ON THE FUNDS INCLUDING ONE FEATURE UNIQUE TO THE ANNUITY WORLD THE INSURANCE EXPENSE LEVIED UPON EACH ANNUITY CONTRACT FEES AND EXPENSES ARE ALWAYS IMPORTANT FOR INVESTORS TO CONSIDER THIS IS ESPECIALLY TRUE WITH VARIABLE ANNUITIES WHERE A SHORTTERM INVESTOR CAN GET EATEN ALIVE BY HIGH FEES THAT SOMETIMES OUTRUN THE TAX BENEFITS OF ANNUITIES DESPITE THEIR EXOTICSOUNDING NAME VARIABLE ANNUITIES ARE SIMPLY TAXSHELTERED COUSINS OF MUTUAL FUNDS AND THEY ARE THE FASTESTGROWING INVESTMENT OF THE 1990S TO DATE LAST YEAR INVESTORS SHOVELED MORE THAN 40 BILLION INTO VARIABLE ANNUITIES UP FROM 23 BILLION IN 1992 AGAINST A BACKDROP OF RISING TAXES IT ISN'T HARD TO SEE WHY INVESTORS ARE GROWING ENAMORED OF ANNUITIES THEY'RE LIKE HAVING A FAMILY OF MUTUAL FUNDS WRAPPED IN A TAXDEFERRED INDIVIDUAL RETIREMENT ACCOUNT WITHOUT A LIMIT ON THE AMOUNT OF MONEY YOU CAN PUT IN SOLD BY INSURANCE COMPANIES BROKERAGE FIRMS MUTUALFUND COMPANIES AND BANKS VARIABLE ANNUITIES ARE JUST ABOUT IDENTICAL TO NONDEDUCTIBLE IRAS AT LEAST FROM THE INVESTOR'S POINT OF VIEW EARNINGS ARE TAXDEFERRED UNTIL TAKEN OUT THEN TAXED AS REGULAR INCOME SIMILARLY YOU HAVE TWO BASIC WITHDRAWAL CHOICES 1 PULL OUT THE MONEY IN A LUMP SUM PAYING INCOME TAXES ON THE EARNINGS PLUS A 10 PENALTY IF YOU'RE UNDER AGE 59 1/2 OR 2 TAKE A SYSTEMATIC WITHDRAWAL BASED ON LIFE EXPECTANCY EACH VARIABLEANNUITY CONTRACT HAS A CHOICE OF STOCK AND BOND MUTUAL FUNDS OR SUBACCOUNTS AMONG WHICH YOU ALLOCATE YOUR MONEY THAT'S WHERE THE WORD VARIABLE COMES FROM ALL THIS VARIETY CAN PRODUCE VARYING RETURNS IN CONTRAST TO A FIXED ANNUITY THAT PROMISES A SET RETURN YOU CAN SWITCH AMONG THE FUNDS WITHIN THE ANNUITY WITHOUT TRIGGERING TAXES WHILE ONLY INSURANCE COMPANIES CAN ISSUE VARIABLEANNUITY CONTRACTS THE FUNDS WITHIN THEM MAY INCLUDE THOSE MANAGED BY THE INSURER OR INCREASINGLY BY A HANDFUL OF BRANDNAME MUTUAL FUND COMPANIES SUCH AS FIDELITY INVESTMENTS OPPENHEIMER MANAGEMENT AND DREYFUS CORP TO NAME A FEW TO USE THIS REPORT LOOK FOR A PARTICULAR VARIABLE ANNUITY WHICH WILL BE LISTED BY NAME FOLLOWED BY A LIST OF THE FUNDS WITHIN IT THE REPORT INCLUDES VARIABLE ANNUITIES AVAILABLE TO ALL INVESTORS AS WELL AS SOME THAT ARE AVAILABLE ONLY WITHIN EMPLOYERSPONSORED RETIREMENT PLANS SUCH AS TIAACREF FOR TEACHERS ANNUITY FUNDS AVAILABLE ONLY IN RETIREMENT PLANS ARE FOLLOWED BY AN ASTERISK THE PERFORMANCE INFORMATION SHOWN IS AFTER ALL EXPENSES HAVE BEEN DEDUCTED SO A 6 RETURN IN THE TABLE REALLY IS A 6 RETURN THESE FIGURES ARE AVERAGE ANNUAL RETURNS WHICH SIMPLY MEANS THAT IF YOU HELD THE FUND FOR SAY FIVE YEARS THE DIVERSE ANNUAL RETURNS YOU RECEIVED WOULD HAVE AVERAGED OUT TO THE AMOUNT SHOWN FOR EXAMPLE FIDELITY GROWTH RETURNED AN AVERAGE OF 1309 A YEAR OVER THE PAST FIVE YEARS IN BEST OF AMERICA IV/NATIONWIDE TO TELL WHETHER A FUND WITHIN THE VARIABLE ANNUITY HAS ABOVEAVERAGE OR BELOWAVERAGE PERFORMANCE COMPARE ITS RETURN WITH THE AVERAGE FUND PERFORMANCE FOR ITS CATEGORY FOR EXAMPLE THE 1309 RETURN OF FIDELITY GROWTH FUND IN THE BEST OF AMERICA IV ANNUITY COMPARES WITH AN AVERAGE RETURN OF 1186 FOR ALL GROWTH FUNDS IN VARIABLE ANNUITIES WHEN CHOOSING FUNDS EXPERTS ADVISE PAYING SPECIAL ATTENTION TO FUNDS THAT OWN STOCKS GROWTH SMALLCOMPANY GROWTH EQUITYINCOME GROWTH AND INCOME AND BALANCED EXPERTS SAY IT MAKES MORE SENSE TO HAVE THESE TYPES OF FUNDS IN VARIABLE ANNUITIES THAN TO FUNNEL ANNUITY MONEY INTO BOND FUNDS OR MONEYMARKET ACCOUNTS REASON YOU'LL GET MORE BANG FOR THE BUCK WITH TAXDEFERRED COMPOUNDING OF RETURNS AND YOU'LL NEED IT TO OVERCOME THE DRAG OF THE INSURANCE EXPENSES YOU CAN ALSO COMPARE THE EXPENSES OF ONE VARIABLE ANNUITY WITH ANOTHER THESE COSTS INCLUDE THE INSURANCE EXPENSE WHICH AVERAGES 127 ANNUALLY AND THE INVESTMENTMANAGEMENT EXPENSE FOR EACH FUND WHICH YOU CAN COMPARE WITH THE TABLE SHOWING THE AVERAGE FUND RETURNS AND EXPENSES FOR EACH FUND OBJECTIVE WHEN THE SAME FUND IS FOUND IN SEVERAL VARIABLEANNUITY CONTRACTS ITS INVESTMENTMANAGEMENT EXPENSE WILL ALWAYS BE THE SAME FOR EXAMPLE THE FIDELITY GROWTH FUND WHICH IS AVAILABLE IN 19 ANNUITIES ALWAYS HAS THE SAME FUND EXPENSE 073 WHICH IS SLIGHTLY LOWER THAN THE AVERAGE FOR GROWTH FUNDS NAMELY 079 HOWEVER THE INSURANCE EXPENSES VARY BY CONTRACT SO THE SAME FUND WILL HAVE SLIGHTLY DIFFERENT RETURNS DEPENDING ON WHICH VARIABLE ANNUITY IT'S IN THE FIVEYEAR AVERAGE ANNUAL RETURN FOR FIDELITY GROWTH IS 1309 IN BEST OF AMERICA IV WHICH HAS ANNUAL INSURANCE EXPENSES OF 130 THE SAME FUND RETURNED 1343 ON AVERAGE IN FIDELITY RETIREMENT RESERVES WITH INSURANCE EXPENSES OF 100 AND 1294 IN STATE MUTUAL EXECUTIVE ANNUITY PLUS WITH INSURANCE EXPENSES OF 145 FINALLY COMPARE SURRENDER CHARGES WHICH ARE LISTED ABOVE THE PERFORMANCE INFORMATION THE AVERAGE MAXIMUM SURRENDER CHARGE IS 7 AND THIS AMOUNT TYPICALLY DECLINES BY ONE PERCENTAGE POINT A YEAR OVER SEVEN YEARS IF YOU WANT TO COMPARE WHETHER A FUND'S PERFORMANCE AND FEES ARE ABOVE OR BELOW AVERAGE BUT YOU CAN'T TELL FROM ITS NAME WHAT TYPE IT IS CHECK THE PROSPECTUS YOU'RE REQUIRED TO RECEIVE WHEN YOU INVEST IN VARIABLE ANNUITIES YOU CAN ALSO CALL MORNINGSTAR 8008208082 WHICH IS AVAILABLE TO ANSWER WALL STREET JOURNAL READERS' QUESTIONS ABOUT VARIABLE ANNUITIES YOU CAN OBTAIN A SINGLE ISSUE OF MORNINGSTAR'S VARIABLE ANNUITY/LIFE PERFORMANCE REPORT FOR 20 IN ADDITION TO EXPLAINING INFORMATION IN THIS REPORT MORNINGSTAR CAN PROVIDE PERFORMANCE INFORMATION ON FUNDS THAT AREN'T INCLUDED BECAUSE THEY ARE LESS THAN A YEAR OLD AND INFORMATION ON VARIABLEANNUITY CONTRACTS THAT ARE EXCLUDED BECAUSE THEY'RE CLOSED TO NEW INVESTORS OR AVAILABLE ONLY IN A SINGLE STATE 9404070016 940407 COMMODITIES COFFEE FUTURES REBOUND ON BUYING BY ROASTERS CONCERNED ABOUT DROP IN SHIPMENTS INVENTORIES BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COFFEE FUTURES REBOUNDED SHARPLY YESTERDAY AFTERNOON ON VERY STRONG BUYING BY ROASTERS CONCERNED ABOUT THE POSSIBILITY OF A DECLINE IN SHIPMENTS AND LOWER INVENTORY LEVELS AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE COFFEE FOR MAY DELIVERY JUMPED 275 CENTS TO 8305 CENTS A POUND AFTER TRADING BELOW WHAT ANALYSTS DESCRIBED AS THE PSYCHOLOGICAL BARRIER OF 80 CENTS A POUND EARLY IN THE DAY SHIPMENTS ARE AT THE LOWEST LEVELS THEY'VE BEEN IN THE PAST FOUR SEASONS AND USERS HAVE DRAWN DOWN THEIR INVENTORIES SAID SANDRA KAUL SENIOR ANALYST AT SMITH BARNEY SHEARSON IN NEW YORK IT LOOKS LIKE THE CHANCE TO REPLACE THOSE INVENTORIES COULD BE LIMITED MS KAUL NOTED THAT COFFEE PRODUCERS APPEAR TO BE SCALING BACK PRODUCTION PARTLY DUE TO LOW PRICES POOR WEATHER ALSO HAS HURT COFFEE CROPS WHILE THE CYCLICAL NATURE OF COFFEE PRODUCTION IS REACHING A CYCLICAL LOW JUDITH GANES SENIOR ANALYST AT MERRILL LYNCH & CO SAID EXPECTED CUTBACKS IN EXPORTS FROM TWO MAJOR COFFEEPRODUCING NATIONS BRAZIL AND COLOMBIA FUELED CONCERNS ABOUT SHORTAGES IT WOULD MAKE SENSE FOR ROASTERS TO LOOK AT THIS RALLY IN FUTURES PRICES AND THINK ABOUT ADDING TO THEIR INVENTORIES SHE SAID OTHER ANALYSTS SAID THEY SAW PANIC BUYING BY SOME ROASTERS AS WELL AS BARGAINHUNTING BY A FEW SPECULATORS BETTING THAT COFFEE PRICES WILL CONTINUE TO SHOW SOME UPWARD MOMENTUM MS KAUL SAID SHE BELIEVES COFFEE PRICES COULD REACH 90 CENTS A POUND IN THE NEAR FUTURE HISTORICALLY THAT'S STILL LOW SHE SAID THE AVERAGE PRICE OVER THE LAST 10 YEARS IS 115 THE PRICES OF BOTH COFFEE AND COCOA FUTURES CONTRACTS BENEFITED FROM RUMORS ABOUT DISPUTES BETWEEN SHIPPERS AND CUSTOMS OFFICIALS IN THE IVORY COAST THAT MAY DELAY SHIPMENTS COCOA FOR MAY DELIVERY ENDED AT 1125 A TON ON THE COFFEE SUGAR & COCOA EXCHANGE UP 24 OTHER SOCALLED SOFT COMMODITIES POSTED PRICE GAINS WITH WORLD SUGAR FOR MAY DELIVERY RISING 023 CENT TO SETTLE AT 1128 CENTS A POUND MS KAUL OF SMITH BARNEY NOTED THAT THE MARKET SAW A LIGHT INQUIRY ABOUT PURCHASING SUGAR ON THE CASH MARKET FROM CHINA ALTHOUGH SHE SAID SHE EXPECTS ANXIETY OVER RISING SUPPLIES FROM CENTRAL AMERICA TO LIMIT FUTURE INCREASES IN OTHER COMMODITY MARKETS YESTERDAY GRAINS POOR WEATHER AND RUMORED BUYING BY THE CHINESE HELPED TO PUSH PRICES OF THE JULY WHEAT CONTRACT UP 625 CENTS A BUSHEL TO SETTLE AT 336 ON THE CHICAGO BOARD OF TRADE BILL BIEDERMANN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC IN CRYSTAL LAKE ILL SAID THAT TEMPERATURES IN KANSAS HAVE BEEN 13 TO 25 DEGREES FAHRENHEIT IN RECENT DAYS AND 17 TO 32 DEGREES IN OKLAHOMA ACCORDING TO GRAIN ELEVATOR OPERATORS THERE DOES APPEAR TO HAVE BEEN SOME DAMAGE TO THE WHEAT CROP IN THOSE STATES HE SAID HELPING TO PUSH WHEAT FUTURES HIGHER IS THE RUMOR THAT CHINA IS SEEKING TO BUY ABOUT 250000 TONS OF WHEAT THIS COULD BE THE BEGINNING OF A WHOLE NEW LEG UP FOR THE MARKET MR BIEDERMANN SAID ADDING HE EXPECTS PRICES COULD MOVE UP AN ADDITIONAL 10 CENTS IN THE SHORT TERM PRECIOUS METALS AFTER SEVERAL DAYS OF MARKET VOLATILITY AND LOWER PRICES PLATINUM AND GOLD PRICES APPEARED TO REGAIN SOME STABILITY ON NEW YORK'S MERCANTILE EXCHANGE GOLD FOR JUNE DELIVERY ENDED AT 38710 AN OUNCE UP 40 CENTS THE PRICE OF JULY PLATINUM ALSO MOVED HIGHER UP 230 AT 41270 AN OUNCE ONLY SILVER MOVED LOWER ANALYSTS AND TRADERS SAID THE METAL HAD BEEN THE MOST OVERBOUGHT BY COMMODITY FUNDS WHICH SPENT THE PAST FEW DAYS LIQUIDATING SOME OF THEIR HOLDINGS THE PRICE OF THE MAY SILVERFUTURES CONTRACT FELL 45 CENTS TO SETTLE AT 551 AN OUNCE 9404070015 940407 QUARTERLY VARIABLE ANNUITIES REVIEW NAMES OF MANAGERS ARE HIDDEN TO AVERT SUDDEN INVESTOR FLIGHT BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL EVER SINCE THE SECURITIES AND EXCHANGE COMMISSION RULED THAT THE NAMES OF MUTUALFUND MANAGERS MUST BE DISCLOSED TO FUND INVESTORS IT'S BEEN GETTING HARDER NOT EASIER TO FIGURE OUT WHO ACTUALLY RUNS A MUTUAL FUND THAT'S THE SURPRISING CONCLUSION REACHED BY MORNINGSTAR MUTUAL FUNDS A CHICAGO MUTUALFUND NEWSLETTER IT SAYS MUTUAL FUNDS ARE HIDING THE NAMES OF THEIR MANAGERS FEARING THAT IF A HIGHLY REGARDED FUND MANAGER QUITS SHAREHOLDERS WILL FLEE IN DROVES SINCE JULY 1 1993 MUTUAL FUNDS HAVE HAD TO DISCLOSE THE NAMES OF MANAGERS IN THEIR PROSPECTUSES WHEN THERE IS A CHANGE IN THE MANAGER INVESTORS PUTTING MONEY INTO THE FUND INCLUDING EXISTING INVESTORS SENDING IN CASH FOR NEW SHARES HAVE TO BE NOTIFIED IMMEDIATELY THROUGH A SUPPLEMENT TO THE PROSPECTUS THAT THEY WOULD NORMALLY GET IN MAKING A PURCHASE OTHERWISE EXISTING INVESTORS MUST BE INFORMED IN THE FUND'S NEXT REGULAR MAILING SAYS THOMAS SMITH A MUTUALFUND ATTORNEY AT BROWN & WOOD IN NEW YORK CITY BUT THERE'S AN IMPORTANT EXCEPTION TO THE NEW RULE WHEN ALL INVESTMENT DECISIONS ARE MADE BY A COMMITTEE AND NO SINGLE PERSON HAS THE JOB OF MAKING RECOMMENDATIONS TO THE COMMITTEE NOBODY NEEDS TO BE NAMED AS A MANAGER EVEN THE COMMITTEE CAN REMAIN ANONYMOUS IT'S NOT COINCIDENTAL MORNINGSTAR SAYS THAT IN RECENT YEARS THERE'S BEEN A RAPID RISE IN THE NUMBER OF FUNDS SAYING THEY ARE RUN BY A TEAM IN 1989 15 OF THE FUNDS MORNINGSTAR TRACKS SAID THEY WERE MANAGED BY TEAMS TODAY MORE THAN 30 OF THE 3455 FUNDS TRACKED BY MORNINGSTAR SAY THEY'RE RUN BY TEAMS WITH NO SINGLE INDIVIDUAL CALLING THE SHOTS 9404070014 940407 HEARD ON THE STREET FUNDS DEALERS TAKE A BEATING ON BRADY BONDS BY SUSAN PULLIAM AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL WHO COULD SAY NO TO AN INVESTMENT THAT IN SOME CASES YIELDED TWO PERCENTAGE POINTS OVER THE 30YEAR US TREASURY BOND BUT WAS CONSIDERED AS LIQUID AS COMMERCIAL PAPER NOT JUNKBOND FUND MANAGERS WHO SNAPPED UP HUNDREDS OF MILLIONS WORTH OF BONDS ISSUED BY COUNTRIES SUCH AS MEXICO ARGENTINA AND VENEZUELA DURING THE PAST YEAR THEY THOUGHT IT WOULD BE A CINCH TO DUMP THESE BONDS FOR CASH SHOULD REDEMPTIONS FROM INVESTORS BEGIN TO RISE IN THE MEANTIME THE BONDS' FAT YIELDS WOULD GIVE A NICE BOOST TO RETURNS THEY THOUGHT NOW THAT BET HAS BEGUN TO UNRAVEL AS US BONDS HAVE PLUMMETED IN RECENT WEEKS SO HAVE PRICES ON THESE LATIN AMERICAN BRADY BONDS WHICH ARE NAMED AFTER FORMER US TREASURY SECRETARY NICHOLAS BRADY MANY OF THE BRADY BONDS OWNED BY THE FUNDS HAD THEIR PRINCIPAL AND EVEN SOME INTEREST PAYMENTS BACKED BY LONGTERM US TREASURY BONDS BUT THAT DIDN'T PROVIDE MUCH STABILITY IN RECENT WEEKS AS PRICES OF BRADY BONDS PLUMMETED SOME 30 OR MORE DWARFING THE DROP IN US BONDS THE MANY FUNDS THAT INVESTED IN THESE SECURITIES FACE LOSSES THAT HAVE DRAGGED DOWN THE NET ASSET VALUE OF THEIR FUNDS OPPENHEIMER HIGH YIELD FUND IS DOWN ABOUT 21 FOR THE YEAR IN JANUARY THAT FUND HAD 11 OF ITS ASSETS INVESTED IN THE DEBT OF DEVELOPING NATIONS MEANWHILE COMMERCIAL BANKS AND WALL STREET FIRMS THAT ARE MAJOR DEALERS IN BRADY BONDS HAVE ALSO SUFFERED BIG LOSSES AS THEY'VE TRIED TO MANAGE THE WAVE OF SELLING FROM MUTUAL FUNDS AND OTHER INVESTORS SOME TRADERS ESTIMATE THAT ALMOST 2 BILLION IN LATIN AMERICAN BONDS HAVE BEEN SOLD IN RECENT WEEKS BY MUTUAL FUNDS ALONE SOME TRADERS ESTIMATE LOSSES AT SOME DEALERS COULD BE AS HIGH AS 250 MILLION THE BIGGEST DEALERS ARE JP MORGAN SALOMON CHEMICAL BANKING'S CHEMICAL BANK CHASE MANHATTAN AND CITICORP'S CITIBANK THESE STOCKS HAVE ALREADY BEEN HAMMERED BECAUSE OF THE TURBULENT GLOBAL SECURITIES MARKETS WITH LATIN AMERICAN DEBT ONE OF THE MOST TROUBLESOME SPOTS ADDING TO DEALERS' WOES ARE PROBLEMS IN THE VOLATILE MARKET FOR EMERGINGMARKET DERIVATIVES IN PARTICULAR TRADERS SAY DEALERS HAVE HAD PROBLEMS HEDGING OPTIONS ON EMERGINGMARKET DEBT THAT THEY SOLD TO THEIR INVESTMENT CUSTOMERS THOSE BONDS' WILD PRICE SWINGS IN RECENT WEEKS HAVE CAUSED HUGE LOSSES IN THE DELTAHEDGES OF DEALERS WHO SOLD SUCH OPTIONS TRADERS SAY SUCH DELTAHEDGES INVOLVE BUYING BONDS IN RISING MARKETS AND SELLING THEM IN FALLING MARKETS SOMETHING DEALERS HAVE BEEN UNABLE TO DO AS BUYERS EVAPORATED AND PRICES PLUNGED IS THE WORST OVER FOR LATIN AMERICAN BONDS SOME WELLHEELED INVESTORS THINK SO THE OPPORTUNITIES IN LATIN AMERICAN DEBT ARE INCREDIBLY ATTRACTIVE NOW SAYS ARTHUR BYRNES CHAIRMAN OF DELTEC ASSET MANAGEMENT A MONEYMANAGEMENT FIRM THAT INVESTS IN LATIN AMERICAN DEBT FOR EXAMPLE VENEZUELAN PAR BONDS HAVE DROPPED IN PRICE FROM A HIGH OF AROUND 76 TO 52 WITH A CURRENT YIELD OF 1315 SAYS MR BYRNES IT'S ONLY THAT CHEAP BECAUSE PEOPLE WERE FORCED TO SELL HE SAYS PAR BONDS GET THEIR NAME FROM THE FACT THAT THEY ARE MADE FROM OLD FOREIGN DEBT THAT HAS BEEN CONVERTED AT FACE VALUE INTO NEW BONDS HOWEVER EVEN THE BULLS ARE SKITTISH OF BUYING THESE BONDS UNTIL THE US BOND MARKET SHOWS SIGNS OF SETTLING DOWN LAST YEAR WALL STREET FIRMS PITCHED BRADY BONDS AS SUPERLIQUID INVESTMENTS BUT LIKE MANY OTHER ASSUMPTIONS ON WALL STREET LATELY THAT ONE PROVED TO BE DEAD WRONG AS THE US BOND MARKET PLUMMETED LAST WEEK THERE WAS NO LIQUIDITY IN LATIN DEBT SO FUNDS COULDN'T GET RID OF THEM EXCEPT AT FIRESALE PRICES SAYS ONE TRADER YOU CAME IN ON MONDAY AND THE BRADY BONDS WERE ALL DOWN TWO POINTS OR 20 ON A BOND WITH A FACE VALUE OF 1000 TO BE SURE EMERGINGMARKETS FUNDS HAVE FELT THE BRUNT OF THE TURMOIL BUT EVEN FUNDS THAT WEREN'T DESIGNED TO HANDLE THE COMPLEXITIES AND RISKS OF DEVELOPINGMARKET SECURITIES HAVE GOTTEN CAUGHT IN THE TAILSPIN INDEED THESE FUNDS THOUGHT BRADY BONDS WERE AS SAFE AS THE US GOVERNMENT BONDS THAT BACKED THEM THE JUNKBOND FUNDS GOT THEIR FIRST INKLING OF THE RISKS SEVERAL WEEKS AGO WHEN THEY STARTED TO PREPARE FOR HIGHER REDEMPTIONS FROM SHAREHOLDERS TO MEET SUCH REDEMPTIONS THE FUNDS NEEDED TO RAISE CASH SO THEY BEGAN SELLING THEIR SUPPOSEDLY LIQUID LATIN AMERICAN BONDS GARY KREPS CHIEF INVESTMENT OFFICER OF GT CAPITAL MANAGEMENT SAYS THE FIRM'S STRATEGIC INCOME FUND RAISED ITS CASH LEVEL TO 15 FROM ZERO SIX WEEKS AGO AS SUCH SHAREHOLDER SELLING ACCELERATED MORE AND MORE BONDS HAD TO BE SOLD AND THE CYCLE BEGAN TO FEED ON ITSELF EVEN THE BIGGEST MOST LIQUID BRADY BONDS FELT THE PINCH MEXICAN PAR BONDS FOR EXAMPLE PLUNGED FROM A PRICE OF 85 IN JANUARY TO A LOW OF AROUND 67 IN RECENT DAYS THOSE BONDS WERE ALSO HURT BY POLITICAL JITTERS FOLLOWING THE ASSASSINATION OF MEXICAN PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO ON MARCH 23 BUT ALL BRADY BONDS HAVE PROVED TO BE MUCH MORE VOLATILE THAN THE US ISSUES THEY ARE PEGGED TO THE LOSSES SUFFERED BY WALL STREET FIRMS THAT MAKE MARKETS IN BRADY BONDS HAVE ONLY COMPLICATED LIFE FOR THE FUND MANAGERS AS DEALERS' LOSSES MOUNTED THEY BECAME LESS AND LESS WILLING TO TAKE BRADY BONDS OFF THE HANDS OF FUNDS THAT WANTED OUT THE DEALERS HAVE BEEN ROILED NOT ONLY BY FALLING PRICES OF LATIN AMERICAN BONDS BUT ALSO BY TREMENDOUS TURMOIL IN THE MARKET FOR LATIN DEBT OPTIONS MOST OF WHICH INVOLVE BRADY BONDS INVESTORS AND HEDGE FUNDS CAN USE OPTIONS TO LEVERAGE THEIR RETURNS BY BUYING CALLS WHICH ARE OPTIONS TO BUY A SECURITY AT A SPECIFIC PRICE WITHIN A LIMITED PERIOD USUALLY SOMEWHAT ABOVE THE CURRENT PRICE OR INVESTORS CAN BUY PUTS WHICH ARE OPTIONS TO SELL A SECURITY AT A SPECIFIED PRICE WITHIN A LIMITED PERIOD WHICH CAN BE USED AS AN INSURANCE POLICY UNFORTUNATELY FOR WALL STREET VERY FEW PEOPLE WERE INTERESTED IN PLAYING IT SAFE MORE THAN 90 OF THE PEOPLE WERE USING OPTIONS FOR LEVERAGE NOT FOR INSURANCE SAYS ALEJANDRO ALLENDE JR VICE PRESIDENT OF THE EMERGINGMARKETS GROUP AT CHASE MANHATTAN BANK THIS MAGNIFIED THE EFFECT AS BOND PRICES WERE GOING UP HE SAYS BUT IT ALSO INCREASED THE PAIN WHEN PRICES FELL WALL STREET FIRMS WHO ARE BIG PLAYERS IN SUCH EMERGINGMARKET DEBT OPTIONS ARE FEELING PLENTY OF PAIN THESE DAYS VERY FEW PEOPLE HAVE MADE MONEY IN THIS MARKET SAYS MR ALLENDE IN FACT THIS WEEK MOST DEALERS WITHDREW FROM THE OPTION BUSINESS AT LEAST TEMPORARILY THAT'S A BEARISH SIGN SINCE IT INDICATES THAT FEW ON WALL STREET ARE WILLING TO BET DEVELOPINGNATION DEBT PRICES ARE GOING TO STAGE A BIG REBOUND AND UNTIL THAT PSYCHOLOGY STARTS TO CHANGE EVEN BULLISH FUND MANAGERS ARE LIKELY TO STAY ON THE SIDELINES 9404070013 940407 TECHNOLOGY & HEALTH SOME HMOS ARE FUMING OVER METHODS OF PENTAGON IN AWARDING HEALTH PACTS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL SIX MILLION AMERICANS AND THE DOCTORS AND HOSPITALS WHO CARE FOR THEM ARE ABOUT TO BECOME THE PAWNS IN A BATTLE BETWEEN HEALTHMAINTENANCE ORGANIZATIONS AND THE PENTAGON THE SIX MILLION ARE THE MILITARY DEPENDENTS AND RETIREES WHOSE MEDICAL CARE IS PROVIDED UNDER THE DEFENSE DEPARTMENT'S CIVILIAN HEALTH AND MEDICAL PROGRAM OF THE UNIFORMED SERVICES THAT PROGRAM KNOWN AS CHAMPUS SPENDS MORE THAN 4 BILLION A YEAR TO COVER ITS MEMBERS' MEDICAL COSTS THE PENTAGON IS ATTEMPTING TO LINE UP HMOS THAT WILL LOWER THE COST OF CHAMPUS'S HEALTH BENEFITS LAST YEAR IT AWARDED A FIVEYEAR 35 BILLION CONTRACT FOR DEPENDENTS AND RETIREES IN CALIFORNIA AND HAWAII OVER THE NEXT THREE YEARS IT HOPES TO AWARD AN ADDITIONAL 11 CONTRACTS COVERING ALL OTHER REGIONS OF THE US HMOS IN TWO DISTRICTS HOWEVER ARE FUMING ABOUT CONTRACT SPECIFICATIONS AND THE WAY THE JOBS ARE AWARDED LAST WEEK GROUP HEALTH COOPERATIVE OF PUGET SOUND A LEADING CONTENDER FOR THE PACIFIC NORTHWEST CONTRACT SAID IT WILL FILE A FORMAL PROTEST REGARDING BIDDING PROCEDURES THE SEATTLEBASED HMO ADDED THAT IT WON'T SPEND ANY MORE MONEY TO SEEK THE FIVEYEAR 600 MILLION MILITARY JOB IF THE DEPARTMENT OF DEFENSE WANTS TO SAVE MONEY AND IMPROVE CARE IT SHOULD LOOK AT TRUE MANAGED CARE THE PRESIDENT OF GROUP HEALTH PHIL NUDELMAN SAYS HE COMPLAINS THAT THE CURRENT VERSION OF THE MILITARY CONTRACT WHICH HAS BEEN AMENDED SEVEN TIMES IS SO PRESCRIPTIVE THAT THERE'S VERY LITTLE IF ANY MANAGED CARE LEFT IN CALIFORNIA AND HAWAII MEANWHILE HMOS' OUTCRIES ARE LEADING TO A SECOND ROUND OF BIDDING FOR THE GIANT CONTRACT LAST YEAR THE DEFENSE DEPARTMENT AWARDED THE JOB TO AETNA LIFE & CASUALTY CO BUT THREE OTHER CONTENDERS HAVE FILED PROTESTS MILITARY OFFICIALS HAVE AGREED TO REOPEN BIDDING WITH A NEW DECISION EXPECTED BY JULY 31 SUCH CLASHES BETWEEN HMOS AND THE MILITARY ARE ALMOST INEVITABLE SAYS SUSAN HOSEK A SENIOR ECONOMIST AT RAND CORP THE DEFENSE DEPARTMENT PROCUREMENT SYSTEM IS VERY CUMBERSOME SHE NOTES FOR MOST HMOS SHE ADDS THE NEED TO FIGURE OUT HOW TO DEAL WITH THE MILITARY IS QUITE NEW TO THEM CHAMPUS IS COUNTING ON MANAGEDCARE COMPANIES SUCH AS HMOS TO HOLD DOWN COSTS UNDER MANAGED CARE HEALTH PLANS LINE UP DISCOUNTS WITH A SELECT GROUP OF DOCTORS AND HOSPITALS AND THEN CHANNEL BIG BLOCKS OF PATIENTS TO THOSE PROVIDERS HEALTH PLANS ALSO STRESS LOWCOST PREVENTIVE TREATMENT WHILE CONTROLLING USE OF COSTLY SPECIALISTS SOME EARLY STUDIES SUGGESTED THAT MANAGED CARE COULD SAVE A LOT OF MONEY FOR CHAMPUS LAST YEAR LEWINVHI A FAIRFAX VA CONSULTING COMPANY CALCULATED THAT THE CHAMPUS MANAGEDCARE CONTRACT IN CALIFORNIA WHICH AT THE TIME WAS RUN BY FOUNDATION HEALTH CORP WAS SAVING THE PENTAGON AS MUCH AS 18 ON ITS HEALTHCARE COSTS BUT THOSE CALCULATIONS ARE DISPUTED BY RAND IN A STUDY LAST YEAR IT FOUND THAT CHAMPUS MANAGED CARE IN CALIFORNIA WAS 8 MORE COSTLY THAN STANDARD COVERAGE THAT'S PARTLY BECAUSE OF UNEXPECTEDLY HIGH ADMINISTRATIVE COSTS AND PARTLY BECAUSE MEMBERS USED MEDICAL SERVICES MORE THAN EXPECTED SAYS RAND'S MS HOSEK GROUP HEALTH'S DR NUDELMAN FOR ONE SAYS HIS HOPES OF CUTTING COSTS LARGELY EVAPORATED AS CHAMPUS KEPT MODIFYING ITS PROPOSED CONTRACT FOR OREGON AND WASHINGTON DR NUDELMAN SAID CHAMPUS WAS LIMITING HIS HMO'S ABILITY TO CONTRACT WITH ONLY THE HOSPITALS THAT IT FELT PROVIDED THE BEST VALUE HE ALSO SAID CHAMPUS PROPOSED TO LEAVE MORE AUTHORITY WITH MILITARY BASE COMMANDERS THAN HE WANTED IT HAS BEEN A CONFUSING PROCESS SAYS KURT DAVIS HEAD OF INVESTOR RELATIONS FOR FOUNDATION HEALTH WHICH ALSO IS BIDDING FOR THE OREGON/WASHINGTON CONTRACT HE SAYS HMOS REGAINED SOME GROUND LAST WEEK WHEN CHAMPUS AMENDED ITS PROPOSALS AGAIN TO REDUCE BASE COMMANDERS' INFLUENCE IN PICKING DOCTORS AND HOSPITALS STILL HE SAYS THIS ISN'T AN EASY CUSTOMER TO SERVE THE NEXT CHAMPUS CONTRACT BEING PUT OUT FOR BIDDING COVERS OKLAHOMA ARKANSAS AND PARTS OF TEXAS ESTIMATES OF COST SAVINGS FROM MANAGED CARE HAVE SHRUNK THIS TIME LEWINVHI FORECASTS SAVINGS OF 35 AND THE DEFENSE DEPARTMENT SAYS THAT UNDER SOME CIRCUMSTANCES MANAGED CARE COULD END UP COSTING 08 MORE THAN STANDARD COVERAGE EARLIER THIS YEAR CONGRESS HAD DIRECTED CHAMPUS TO IMPLEMENT MANAGEDCARE CONTRACTS NATIONWIDE BY SEPT 30 1996 RICHARD HOGUE BRANCH CHIEF OF CHAMPUS'S CONTRACTMANAGEMENT DIVISION SAYS WE'LL DO OUR BEST TO MEET THAT SCHEDULE COULD A FLURRY OF HMO PROTESTS MARKEDLY SLOW DOWN THE PROCESS WE'LL HAVE TO SEE WHAT HAPPENS HE SAYS 9404070012 940407 HERE'S ANOTHER REASON FOR DRIVERS TO KEEP THEIR EYES ON THE ROAD BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL GOT A HANKERING FOR A PARALLEL DATABASE THEN YOU'LL ENJOY THE DRIVE NORTH ON HIGHWAY 101 FROM SILICON VALLEY TO THE SAN FRANCISCO AIRPORT AMID THE REDWOODS AND WINNEBAGOS THREE COMPUTER COMPANIES ARE TAKING AMBUSH MARKETING TO NEW LEVELS SNIPING AT EACH OTHER IN BILLBOARD ADS THAT PITCH THEIR ARCANE HIGHTECH PRODUCTS AS IF THEY WERE PEPSI OR COKE LAST FALL SOFTWARE COMPANY INFORMIX CORP RENTED A BILLBOARD NEAR THE OFF RAMP TO THE HEADQUARTERS OF ORACLE CORP THE WORLD'S BIGGEST PROVIDER OF COMPLEX DATABASE SOFTWARE FOR CORPORATIONS THE BILLBOARD WHICH SHOWED A MAN DRIVING A CONVERTIBLE ASSERTED THAT INFORMIX HAS THE BEST DATABASE TECHNOLOGY ON 101 DATABASE SOFTWARE HELPS THE USER STORE AND SIFT THROUGH LARGE AMOUNTS OF INFORMATION THEN INTERNATIONAL BUSINESS MACHINES CORP RENTED A BILLBOARD ON THE OTHER SIDE OF THE ORACLE EXIT TOUTING IBM'S DATABASE PRODUCT WITH THE SLOGAN TRUST NOT HYPE ORACLE THE UNDISPUTED DATABASE KING LET THE INSULTS RIDE FOR MONTHS BUT IT FINALLY STRUCK BACK IN RECENT WEEKS PARKING A MOBILE BILLBOARD IN FRONT OF INFORMIX'S MENLO PARK HEADQUARTERS FOR ONE FULL DAY THE AD READ INFORMIX THE BEST DATABASE COMPANY ON HIGHWAY 101 AS SEEN IN SNAIL SYSTEMS AN ALLUSION TO AN ORACLE AD CAMPAIGN THAT CLAIMS COMPETITORS' PRODUCTS ARE AS SLOW AS SNAILS BY THEN INFORMIX HAD CHANGED ITS BILLBOARD TO SAY THAT IT IS THE BIGGEST NEWS IN PARALLEL DATABASES DATABASES ARE CALLED PARALLEL WHEN THEY ARE STORED ON SEVERAL COMPUTERS INSTEAD OF JUST ONE COMMUTERS ARE CLUELESS EDWARD ACHUCK A PHARMACIST DRIVES BY THE INFORMIX BILLBOARD EVERY DAY ON HIS WAY HOME FROM WORK I THOUGHT IT WAS A CELLULAR PHONE COMPANY HE SAYS OF INFORMIX HE CAN'T READ THE BILLBOARD CAREFULLY HE NOTES BECAUSE HE DRIVES BY TOO FAST MAYBE IF I GOT STUCK IN RUSHHOUR TRAFFIC RIGHT AT THAT SPOT I'D BE ABLE TO READ IT HE SAYS BUT I STILL WOULDN'T GET IT HE DOES FEEL SORRY FOR INFORMIX THOUGH THEY PAID MONEY FOR IT AND PEOPLE JUST DON'T GET IT HE SAYS ISN'T THAT HORRIBLE ORACLE AND INFORMIX BOTH INSIST THE ADS AREN'T A WASTE OF MONEY BUT ISN'T ALL THIS A BIT JUVENILE I BETTER GET A JUVENILE IN THE ROOM TO ANSWER THAT QUESTION AN ORACLE SPOKESMAN SAYS 9404070011 940407 MUTUAL ATTRACTION OF PHONE AND CABLE GIANTS FADES FAST BY BART ZIEGLER AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WHEN CABLE AND PHONE COMPANIES BEGAN JOINING FORCES A YEAR AGO TO BUILD INTERACTIVE SUPERHIGHWAY SYSTEMS EVERYONE INVOLVED SAW NOTHING AHEAD BUT BLUE SKIES AND BIG PROFITS BUT FOLLOWING THE SCUTTLING THIS WEEK OF THE 49 BILLION JOINT VENTURE BETWEEN SOUTHWESTERN BELL CORP AND COX ENTERPRISES INC THE CONCEPT OF ALLIANCES BETWEEN THE REGIONAL BABY BELLS AND THE CABLE GIANTS IS BEING CALLED INTO QUESTION THE DEMISE OF THE SOUTHWESTERN BELLCOX DEAL FOLLOWS THE COLLAPSE A MONTH AGO OF THE BIGGEST SUCH EFFORT WHICH WOULD HAVE JOINED BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC THE SEVEN BABY BELLS WERE TO HAVE BEEN THE SUGAR DADDIES FOR THE DEBTLADEN CABLE OPERATORS ALLOWING THEM TO RAISE THE BILLIONS OF DOLLARS NEEDED TO REBUILD THEIR SYSTEMS TO ZAP MOVIES ON DEMAND INTERACTIVE SHOPPING AND OTHER SERVICES THE PHONE COMPANIES MEANWHILE WERE EAGER TO OFFER PHONE SERVICE OVER THEIR CABLE PARTNERS' LINES FINALLY BREAKING OUT OF THEIR CONFINING REGIONAL SERVICE TERRITORIES NOW PHONE AND CABLE GIANTS MAY GO THEIR SEPARATE WAYS THOSE THAT STILL CHOOSE TO FORM ALLIANCES MAY NARROW THEIR SCOPE LIMITING THE COOPERATION TO SPECIFIC CITIES OR CERTAIN TECHNOLOGIES SAYS THOMAS E GAGE A VICE PRESIDENT AT GEMINI CONSULTING AND THOUGH THE PROPOSED ALLIANCES WERE VIEWED BY SOME AS LIKELY TO REDUCE COMPETITION IN FACT THEIR COLLAPSE MAY NOW HAVE THAT EFFECT THE SEVEN BABY BELLS IN PREPARING TO OFFER PHONE AND VIDEO SERVICES IN ONE ANOTHER'S SERVICE REGIONS WOULD HAVE BEEN ABLE TO DO SO FAR MORE RAPIDLY AND CHEAPLY BY BUYING CABLE SYSTEMS IN THEIR RIVALS' TERRITORY NOW SUCH EFFORTS MAY BE DELAYED OR CUT BACK ENTIRELY CABLE COMPANIES MEANWHILE MAY TRY TO SHARE THE COSTLY NEW TWOWAY INFORMATION NETWORKS WITH PHONE COMPANIES BY SIMPLY PIGGYBACKING ON A CENTRAL SYSTEM RATHER THAN BUILDING COMPETING SYSTEMS THEMSELVES ALREADY BELL ATLANTIC IS PUSHING THE CONCEPT IN NEW JERSEY PROPOSING TO LEASE SPACE ON ITS NEW INTERACTIVE VIDEO NETWORK TO LOCAL CABLE OPERATORS MY VIEW IS THE PHONE COMPANIES ARE BREATHING A SIGH OF RELIEF SAYS JEFF MILLER OF ANDERSEN CONSULTING THEY NO LONGER FACE THE IMMINENT THREAT OF A CABLE COMPANY IN THEIR SERVICE REGION TEAMING UP WITH A RIVAL BABY BELL TO OFFER NEW COMPETITION FOR VOICE AND VIDEO SERVICES HE SAYS ANY CABLE RIVAL WITHOUT THE FINANCIAL BACKING OF A BELL COMPANY WOULD POSE FAR LESS TROUBLE INDEED WALL STREET IS BETTING THAT ONE OF THE LAST BIG CABLE COMPANIES RUMORED TO BE LOOKING FOR A PHONE PARTNER CABLEVISION SYSTEMS CORP WON'T GET HITCHED CABLEVISION'S STOCK FELL 337 A SHARE TO 46 ON NEWS OF THE COLLAPSE OF THE SOUTHWESTERN BELLCOX DEAL YESTERDAY CABLEVISION'S CHAIRMAN CHARLES DOLAN DECLINED TO DESCRIBE THE STATUS OF ANY TALKS WITH A BABY BELL SUITOR BUT SAID I DON'T THINK THE FUNDAMENTALS HAVE CHANGED I LIKE WHERE WE ARE WE'RE ALWAYS READY TO VISIT WITH ANYBODY NOW PHONE COMPANIES MAY SLOW DOWN THEIR INVESTMENT IN VIDEO NETWORKS ALTOGETHER SOME OBSERVERS SAY IF A COMPETITOR TAKES LONGER TO GET TO THE NEXT LEVEL OF SERVICE THAT OBVIOUSLY GIVES US A LITTLE MORE TIME AS WELL SAYS MARK SEIDLER VICE PRESIDENT OF CORPORATE DEVELOPMENT AT BELLSOUTH CORP BUT OTHER PHONE GIANTS SAY THEY WON'T ALTER THEIR VIDEO PLANS IF WE CAN GET A JUMP AHEAD OF SERIOUS COMPETITION WE'RE BETTER OFF SAYS RICHARD H BROWN VICE CHAIRMAN OF AMERITECH A BABY BELL THAT PLANS TO START BUILDING VIDEO SYSTEMS IN 100 MIDWESTERN COMMUNITIES BY THE END OF THE YEAR ON THE CABLE SIDE THE FEDERAL COMMUNICATIONS COMMISSION'S RECENT REREGULATION OF THE INDUSTRY HAS CRIMPED THE ABILITY OF MANY CABLE OPERATORS TO INVEST IN UPGRADED SYSTEMS THE MOST IMPORTANT SINGLE EFFECT OF THESE RULES IS THAT THEY WILL SUBSTANTIALLY RAISE THE COST OF CAPITAL AND LIMIT ACCESS TO IT COMPLAINS AMOS HOSTETTER CHAIRMAN OF CONTINENTAL CABLEVISION INC ANOTHER UNCERTAINTY HINDERING CABLEPHONE DEALS IS HOW CONGRESS MAY REWRITE THE RULES THAT HAVE HISTORICALLY LIMITED PHONE AND CABLE COMPANIES FROM COMPETING IN ONE ANOTHER'S MARKETS UNTIL THE NEW RULES ARE CLEAR COMPANIES MAY BE UNWILLING TO COMMIT TO NEW ALLIANCES SAYS MR MILLER OF ANDERSEN CONSULTING IN ADDITION PHONE AND CABLE COMPANIES ALIKE AREN'T ANY MORE CERTAIN NOW THAN THEY WERE A YEAR AGO THAT CUSTOMERS EVEN WANT INTERACTIVE SERVICES OR ARE WILLING TO PAY FOR THEM AT RATES THAT WILL BE PROFITABLE ONE OF THE EARLY INTERACTIVE SYSTEMS TIME WARNER'S TEST SYSTEM IN ORLANDO WITH U S WEST HAS BEEN DELAYED BY MONTHS OVER TECHNICAL PROBLEMS OTHER TESTING STILL HASN'T GONE BEYOND LOWTECH SIMULATIONS OF TWOWAY NETWORKS PHONE COMPANIES AND CABLE PROVIDERS ARE ALSO FACED WITH OTHER ALLURING INVESTMENT PROSPECTS THE FCC IS PREPARING TO AUCTION OFF AIRWAYS FOR A NEW POCKETPHONE SYSTEM CALLED PERSONAL COMMUNICATIONS SERVICES AND SOME PLAYERS MAY CHOOSE TO INVEST IN THOSE SETUPS BEFORE THEY PROCEED WITH VIDEO PLANS OVER THE LONGER TERM CABLE AND PHONE COMPANIES MAY FIND IT IN THEIR BEST INTEREST TO COOPERATE WITH EACH OTHER IN WAYS THAT FALL SHORT OF MARRIAGE THEY STILL SEEK THE MAJOR GOAL THAT DROVE EARLIER EFFORTS EXPANDING THEIR CUSTOMER TERRITORIES AND THEY STILL HOPE TO SHARE THE RISK OF FINDING OUT WHETHER INTERACTIVE SERVICES CAN PAY OFF EACH HAS EXPERTISE IN AREAS THE OTHER NEEDS TO ENTER THE INTERACTIVE AGE PHONE COMPANIES KNOW HOW TO SWITCH MILLIONS OF SIGNALS TO HOMES WHICH IS VITAL TO PROVIDE VIDEO ON DEMAND CABLE COMPANIES HAVE RELATIONSHIPS WITH HOLLYWOOD STUDIOS AND OTHER CONTENT PROVIDERS AND KNOW HOW TO DISTRIBUTE VIDEO SIGNALS LONG DISTANCE SOME OBSERVERS BELIEVE THE SPECIFIC DEALS WERE AT FAULT RATHER THAN THE CONCEPT OF CABLEPHONE ALLIANCES WE'RE SEEING THE FALLOUT FROM SHAKY MARRIAGES THAT WERE PUT TOGETHER IN A HURRY LAST FALL IN RESPONSE TO THE BELL ATLANTICTCI DEAL SAYS MR MILLER OF ANDERSEN CONSULTING WITH BETTER PLANNING AND MORE THOUGHT CABLE AND PHONE COMPANIES MAY FIND ALLIANCES THAT MAKE MORE SENSE HE ADDS 9404070010 940407 CORRECTIONS & AMPLIFICATIONS CHINA'S VICE MINISTER OF POSTS AND TELECOMMUNICATIONS SPELLS HIS NAME ZHU GAOFENG HIS NAME WAS MISSPELLED IN A PAGEONE ARTICLE TUESDAY SOME 14000 ILLINOIS SCHOOL EMPLOYEES OR ABOUT 6 OF THE EMPLOYEES CHOSE EARLY RETIREMENT UNDER AN INCENTIVE PLAN AN ARTICLE TUESDAY UNDERSTATED THE NUMBER OF EMPLOYEES WHO RETIRED SHEILA BAIR FORMER ACTING CHAIRMAN OF THE COMMODITY FUTURES TRADING COMMISSION IS STILL A CFTC MEMBER AN ARTICLE TUESDAY ABOUT METALLGESELLSCHAFT AG'S MAIN US UNIT MG CORP IMPLIED THAT SHE WAS NO LONGER A MEMBER OF THE COMMISSION 9404070009 940407 ABREAST OF THE MARKET INDUSTRIALS EDGE UP 432 POINTS AMID CAUTION ON INTEREST RATES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS MANAGED A MIXED FINISH AFTER A SESSION OF WATCHING AND WORRYING ABOUT INTEREST RATES THE DOW JONES INDUSTRIAL AVERAGE FOLLOWED UP ON TUESDAY'S 8206POINT SURGE WITH A MODEST GAIN OF 432 OR 012 TO 367973 BROADBASED INDEXES WERE MIXED THE NASDAQ STOCK MARKET EASED THE INDUSTRIAL AVERAGE HAD GAINED AS MUCH AS 20 POINTS INTRADAY AIDED BY STRENGTH IN MANY ECONOMICALLY SENSITIVE STOCKS BUT JITTERY INVESTORS LOCKED IN PROFITS BEFORE THE CLOSE PUSHING PRICES LOWER SAID MICHAEL LYONS A TRADER AT DEAN WITTER REYNOLDS INVESTORS REMAIN UNCONVINCED THAT THE BOND MARKET ROUT WHICH HAS SENT INTEREST RATES SOARING AND STOCK PRICES TUMBLING IS OVER SAID DAVID BUTLER HEAD OF EQUITY TRADING AT KEMPER FINANCIAL SERVICES STOCKS FOLLOWED BONDS BACK AND FORTH SEVERAL TIMES YESTERDAY THE 30YEAR TREASURY FINISHED WITH A SLIM GAIN OF 1/32 POINT TO YIELD 724 IT WAS DOWN NEARLY A FULL POINT AT ITS SESSION LOW AROUND MIDDAY MEANWHILE JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH SAID MANY INVESTORS REMAIN CONCERNED THAT TUESDAY'S SHARP RALLY THE LARGEST ONEDAY MOVE IN THE INDUSTRIAL AVERAGE SINCE DECEMBER 1991 MIGHT HAVE BEEN NOTHING MORE THAN A TEMPORARY BOUNCE BACK BUT MR SOLLOWAY SAID HE THINKS STOCK PRICES WILL ADVANCE FUNDAMENTALLY THINGS DO NOT LOOK ALL THAT BAD HE SAID BOND PRICES AREN'T LIKELY TO SLIDE SIGNIFICANTLY AND THE ECONOMY SHOULD REMAIN STRONG ENOUGH TO LIFT EARNINGS IT WAS HOPE FOR STRONG EARNINGS THAT MADE ECONOMICALLY SENSITIVE STOCKS AMONG THE SESSION'S STRONGEST CATERPILLAR JUMPED 3 3/4 TO 120 CONTRIBUTING ENOUGH TO ACCOUNT FOR ALL OF THE GAIN IN THE INDUSTRIAL AVERAGE BETHLEHEM STEEL ROSE 5/8 TO 21 3/8 REYNOLDS METALS INCREASED 1 7/8 TO 48 1/8 LESS INFLUENCED BY CYCLICALS THAN THE DOW THE STANDARD & POOR'S 500 STOCK INDEX SLIPPED 024 OR 005 TO 44805 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 025 OR 010 TO 24866 THE DOW JONES EQUITY MARKET INDEX SLIPPED 014 OR 003 TO 42529 THE NASDAQ COMPOSITE INDEX LOST 023 OR 003 TO 75072 DESPITE A SECOND DAY OF STRENGTH IN MUCH OF ITS DOMINANT TECHNOLOGY GROUP MICROSOFT ADDED 1 1/4 TO 89 INTEL ADVANCED 7/8 TO 69 5/8 AND 3COM ROSE 7/8 TO 57 7/8 CASINO AND TRUCKING STOCKS WERE DEPRESSANTS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX LOST A SCANT 001 TO 44098 TRUCKING STOCKS WERE LOWER AS THE TEAMSTERS UNION BEGAN A STRIKE AGAINST THE INDUSTRY CONSOLIDATED FREIGHTWAYS LOST 5/8 TO 26 5/8 WHILE ON NASDAQ ROADWAY SERVICES SHED 1/2 TO 67 1/2 AND YELLOW SLIPPED 7/16 TO 23 9/16 JB HUNT TRANSPORT THOUGH GAINED 3/4 TO 23 1/4 THE LOWELL ARK CONCERN ISN'T UNIONIZED AND WASN'T AFFECTED BY THE STRIKE MCCAW CELLULAR LOST 1 3/4 TO 48 WHILE AMERICAN TELEPHONE & TELEGRAPH SLIPPED 3/4 TO 51 1/4 A FEDERAL JUDGE SAID THE NEW YORK TELECOMMUNICATIONS CONCERN HADN'T YET PERSUADED HIM TO APPROVE ITS PLAN TO ACQUIRE MCCAW BUT HE SUGGESTED HE MIGHT CLEAR ITS PURCHASE OF THE COMPANY LATER GENERAL ELECTRIC LOST 1 1/4 TO 97 5/8 EVEN THOUGH THE CONGLOMERATE LATE IN THE DAY ESTIMATED THAT ITS FIRSTQUARTER EARNINGS WERE AT THE HIGH END OF EXPECTATIONS ANALYSTS HAVE PREDICTED A PROFIT OF 145 TO 150 A SHARE IT SAID EQUITABLE DROPPED 1 1/8 TO 20 IN HEAVY TRADING AFTER OPPENHEIMER ANALYST MYRON PICOULT LOWERED HIS EARNINGS ESTIMATE FOR THE COMPANY MR PICOULT CUT HIS FIRSTQUARTER ESTIMATE FIVE CENTS TO 37 CENTS A SHARE AND THE FULLYEAR ESTIMATE TO 185 FROM 2 CITING LOWERED EXPECTATIONS FOR THE COMPANY'S INVESTMENT SUBSIDIARIES PRIMARILY DONALDSON LUFKIN & JENRETTE AND THE LIFEINSURANCE BUSINESS MARGARET ALEXANDRE AN ANALYST WITH SALOMON BROTHERS SAID THE MARKET WAS SPOOKED BY THE REDUCTION BECAUSE IT WAS THE FIRST DOWNWARD REVISION SINCE THE COMPANY WENT PUBLIC IN 1992 AT 9 A SHARE CHARLES SCHWAB RALLIED 3/4 TO 28 AFTER THE BROKERAGE COMPANY ESTIMATED ITS FIRSTQUARTER EARNINGS AT 66 CENTS A SHARE THAT IS UP FROM 60 CENTS A YEAR AGO AND HIGHER THAN THE 59CENT MEAN ESTIMATE OF ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM OTHER BROKERAGE STOCKS WERE STRONG FOR A SECOND DAY MERRILL LYNCH GAINED 1 3/4 TO 39 MORGAN STANLEY 1 TO 65 1/4 SALOMON 1 3/4 TO 51 1/8 AND BEAR STEARNS 3/4 TO 20 3/8 THE STABILIZATION IN BONDS HAS HELPED MANY FINANCIALRELATED ISSUES GENERAL MOTORS ROSE 1 1/2 TO 58 3/4 FORD MOTOR WAS UNCHANGED AT 60 7/8 AND CHRYSLER ADVANCED 1/4 TO 54 3/4 ALL THREE REPORTED SALES GAINS OF AT LEAST 10 FOR MARCH TOTAL US CAR SALES WERE AT A 76 MILLIONUNIT ANNUAL RATE SLIGHTLY ABOVE EXPECTATIONS SHARES OF APPAREL RETAILERS CONTINUED TO REBOUND SHARPLY TALBOTS INCREASED 2 TO 34 3/4 LIZ CLAIBORNE 1 3/4 TO 25 5/8 GAP 1/2 TO 46 3/4 AND LIMITED 3/4 TO 22 1/8 QVC JUMPED 4 TO 40 ON NASDAQ PAINEWEBBER ANALYST CRAIG BIBB RAISED AN INVESTMENT RATING ON SHARES OF THE CABLE TELEVISION SHOPPING NETWORK TO BUY FROM ATTRACTIVE VALUE HEALTH A SPECIALITY MANAGEDCARE COMPANY ROSE 1 7/8 TO 43 FOLLOWING A JUMP OF 3 1/2 THE DAY BEFORE THE COMPANY HAD NO EXPLANATION FOR THE MOVE DIAL INCREASED 1 1/4 TO 41 3/4 OPPENHEIMER & CO BEGAN COVERAGE OF THE PERSONALCAREPRODUCTS COMPANY IT RATED DIAL SHARES A BUY AFTER THE MARKET CLOSED AN INITIAL PUBLIC OFFERING OF 9375000 COMMON SHARES OF LEAR SEATING WAS PRICED AT 1550 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS THE COMPANY HAD BEEN LOOKING TO SELL THE SHARES AT 15 TO 17 EACH 9404070008 940407 LEISURE & ARTS FILM A MYSTICAL HOUSE OF SPIRITS' BY JULIE SALAMON WHEN THE HOUSE OF THE SPIRITS ISABEL ALLENDE'S RICHLY EVOCATIVE NOVEL WAS PUBLISHED IT WAS AS IRRESISTIBLE TO MOVIE PRODUCERS AS A PLUMP CHILD IS TO MOSQUITOES THE BOOK'S POLITICAL THEMES MADE IT SERIOUS WHILE ITS ENCHANTED TELLING OF A DANGEROUS AND PASSIONATE FAMILY EPIC MADE IT SEXY THE DEAL MAKERS SWARMED AROUND THE WRITER I HAD SEVERAL OFFERS TO DO A FILM MS ALLENDE HAS SAID BUT I WAS HORRIFIED BY THE PEOPLE EVERYTHING THEY SAID SOUNDED SO FLAMBOYANT AND ARTIFICIAL NO ONE SEEMED TO HAVE A GRASP ON REALITY SO I TOLD MY AGENT I DIDN'T WANT ANY MORE CONTACT WITH PRODUCERS OR DIRECTORS AND THAT I DIDN'T WANT ANYONE TO MAKE A MOVIE IN KEEPING WITH THE SUPERNATURAL UNDERPINNINGS OF THE HOUSE OF THE SPIRITS THE DIRECTOR WHO FINALLY BROKE MS ALLENDE'S RESISTANCE BILLE AUGUST WAS MOST UNLIKELY HE THE PROTEGE OF INGMAR BERGMAN IS AN APOLITICAL SCANDINAVIAN SHE THE NIECE OF ASSASSINATED CHILEAN PRESIDENT SALVADOR ALLENDE IS A HIGHLY POLITICIZED LATIN AMERICAN THIS IMPROBABLE MATCH SPAWNED A LITTER OF IMPROBABILITIES CLARA THE CLAIRVOYANT MODELED AFTER MS ALLENDE'S CHILEAN GRANDMOTHER A WOMAN WITH DARK HAIR AND EYES WOULD BE PLAYED BY THE VERY NONLATIN MERYL STREEP IN HER NATURAL CONDITION WITH BLOND HAIR AND BLUE EYES THE BRITISH ACTOR JEREMY IRONS WOULD BE ESTEBAN CLARA'S TORMENTED HUSBAND AND GLENN CLOSE ANOTHER PALE BLONDE WOULD BE FERULA ESTEBAN'S SISTER THE FILM THE PRODUCER OF WHICH IS GERMAN WAS SHOT IN DENMARK AND PORTUGAL THIS EXUBERANT INTERNATIONALISM RAISED THE SUSPICION THAT THE HOUSE OF THE SPIRITS WOULD BE SO HOMOGENIZED THAT IT WOULD HAVE TO BE RETITLED THE HOUSE OF BABEL IT WAS LOOKING LIKE A CLASSIC HOLLYWOOD PRODUCTION WHERE THE ONLY AUTHENTICITY THAT MATTERS IS STAR POWER AND A GOOD DISTRIBUTION DEAL BUT MYSTERIOUS FORCES MAY WELL HAVE BEEN AT WORK HERE MR AUGUST WHO ALSO WROTE THE SCREENPLAY HAS INVENTED A NEW GENRE WITH THIS FILM SCANDINAVIAN MAGIC REALISM HE HAS MANAGED TO ALTER MS ALLENDE'S LATIN SENSIBILITY WHILE REMAINING TRUE TO IT THIS ISN'T AS STRANGE AS IT MIGHT SEEM CONSIDERING MR AUGUST'S OWN WORK ESPECIALLY PELLE THE CONQUEROR HIS LUMINOUS ADAPTATION OF DANISH AUTHOR MARTIN ANDERSON'S FOURVOLUME NOVEL ABOUT A BOY'S COMING OF AGE IN 19THCENTURY DENMARK BOTH THAT FILM AND THIS ONE WERE SHOT BY CAMERAMAN JORGEN PERSSON WITH A SHIMMERING BEAUTY THAT OPENS THE MIND TO THE POSSIBILITY OF OTHERWORLDLY INTERVENTION SO IN ADAPTING MS ALLENDE'S NOVEL MR AUGUST BROUGHT ALONG AN UNDERSTANDING OF THE WHIMSICAL FORCES THAT GOVERN FAMILY HISTORIES AND A SYMPATHY FOR THE SUPERNATURAL ONES THAT LATIN AMERICAN WRITERS SEEM TO TAKE FOR GRANTED HE DOESN'T SHY AWAY FROM EITHER HORROR OR POIGNANCY AS HE FOLLOWS THE STORY'S PASSAGE FROM ONE GENERATION TO THE OTHER HE IS CLEARLY MORE CONCERNED WITH EMOTIONAL ACCURACY THAN WITH HISTORICAL DETAIL WHILE HE FOLLOWS THE HALFCENTURY HISTORICAL SPAN OF THE ALLENDE NOVEL HE HAS MADE THE BOOK'S POLITICS LESS SPECIFIC AND MORE ALLEGORICAL WHICH MAKES THE MULTICULTURAL CASTING MUCH MORE PLAUSIBLE OF COURSE IT IS THE ACTORS THEMSELVES WHO COMPLETE THE PLAUSIBILITY ALL OF THEM ARE SUPERB IN MAJOR AS WELL AS MINOR PARTS INDEED WHEN MS STREEP LEVITATES A TABLE IT SEEMS QUITE BELIEVABLE MS STREEP HAS THE MOST DIFFICULT ROLE NOT JUST BECAUSE CLARA HAS SUPERNATURAL POWERS BUT BECAUSE CLARA IS SO PURE THE OTHER CHARACTERS HAVE BEEN GIVEN DEMONS TO OVERCOME SHE HAS BEEN GIVEN GOODNESS AND GOODNESS TENDS TO COME ACROSS AS BLAND CLARA HAS AN EXAGGERATED CASE OF WOMEN'S INTUITION SHE SEES SOME THINGS BEFORE THEY HAPPEN AND ALL THINGS AS THEY HAPPEN EVEN WHEN THEY AREN'T IN HER LINE OF VISION SHE'S NOT SO MUCH A PARTICIPANT IN LIFE BUT AN OBSERVER OF IT YET SHE IS A POWERFUL FORCE BECAUSE SHE SEES SO MUCH AND REMAINS KIND ANYWAY SHE COULD COME ACROSS AS UNBEARABLY SAPPY BUT MS STREEP MAKES THIS ANGEL INTERESTING AS WELL AS INCREDIBLY TOUCHING MR IRONS AND MS CLOSE EXPERTLY CONVEY THE TURBULENCE OF THE TROUBLED SIBLINGS WHO BOTH LOVE CLARA AND WINONA RYDER CONTINUING TO MAKE GOOD ON HER EARLY PROMISE HOLDS HER OWN AND THEN SOME AS CLARA'S DAUGHTER AND MEMORIALIST IT'S A PLEASURE TO WATCH GOOD ACTORS STRETCHING OUT IN THE ROOMY SPACE PROVIDED BY COMPLICATED CHARACTERS INSTEAD OF SQUEEZING THEIR TALENTS INTO TINY COMPARTMENTS MARKED VILLAIN AND HERO YET THE LUXURY HASN'T LEAD TO THESPIAN OVERINDULGENCE THE PERFORMANCES NEVER FEEL GIMMICKY WHEN THE LEAD PLAYERS HAVE TO AGE MANY YEARS FOR EXAMPLE IT'S THE SENSE OF INTERNAL CHANGE THAT'S CONVINCING NOT JUST THE MAKEUP VIDEO TIP MAYBE IT'S PURE COINCIDENCE BUT MS STREEP SEEMS TO TURN UP IN MANY FILMS WHERE THE SUPERNATURAL THRIVES SHE WAS THE VICTIMIZED ROMANCE NOVELIST IN SHEDEVIL AN AGING ACTRESS SEEKING ETERNAL YOUTH IN DEATH BECOMES HER A DEAD WOMAN FACING JUDGMENT DAY IN DEFENDING YOUR LIFE 9404070007 940407 MARKETING & MEDIA ADVERTISING OMNICOM TRACK MARKETING JOIN TO PROMOTE PRODUCTS AT CONCERTS BY KEVIN GOLDMAN PEOPLE ATTENDING COUNTRY SINGER REBA MCENTIRE'S CONCERT AT THE MISSISSIPPI COLISEUM IN JACKSON LAST FRIDAY COULDN'T HAVE MISSED THE SPONSOR'S NAME ON THE FACE OF THE TICKETS WAS THE PHRASE FRITO SCOOPS PRESENTS ONCE IN THE ARENA ATTENDEES WERE PRESENTED WITH FREE SAMPLES OF SCOOPS A NEW SALTY SNACK FROM THE PEPSICO UNIT THE COLISEUM WAS PLASTERED WITH SIGNS BEARING THE SCOOPS LOGO AND BEFORE MS MCENTIRE HIT THE STAGE THE CROWD HAD TO SIT THROUGH A ONEMINUTE RETROSPECTIVE OF FRITOLAY COMMERCIALS INCLUDING THE FRITO BANDITO THE PROMOTIONAL BLITZ WILL BE REPEATED SUNDAY EVENING AT THE BALTIMORE ARENA AND 38 ADDITIONAL STOPS ALONG MS MCENTIRE'S NATIONWIDE TOUR MARKETERS HAVE BEEN SPONSORING CONCERTS FOR YEARS BUT THE FRITO SPONSORSHIP IS ONE OF THE FIRST FRUITS OF AN UNUSUAL PARTNERSHIP BETWEEN AN AD AGENCY AND A MUSICMARKETING COMPANY OMNICOM GROUP'S DDB NEEDHAM HAS SIGNED A FORMAL AGREEMENT WITH TRACK MARKETING AN INDEPENDENT MUSIC AND ENTERTAINMENT MARKETING COMPANY TO WORK TO DEVISE CONCERT TOURS AND OTHER PROMOTIONS FOR NEEDHAM CLIENTS ON A REGULAR BASIS WHAT ATTRACTED NEEDHAM TO TRACK MARKETING WHICH WAS FOUNDED IN 1986 WAS THE COMPANY'S RANGE OF MUSICAL ACTS FROM COUNTRY TO ROCK TO ALTERNATIVE BANDS AND ITS KNOWLEDGE OF MARRYING PRODUCTS WITH CONCERT TOURS AND OTHER MUSICRELATED ACTIVITIES NOW NEEDHAM WILL INCLUDE ITS ASSOCIATION WITH TRACK MARKETING WHEN COMPETING FOR NEW BUSINESS THE DEAL IN WHICH NO MONEY EXCHANGED HANDS COMES AS CLIENTS ARE INCREASINGLY HUNGRY TO GET AS MANY SERVICES FROM ONE AD AGENCY AS POSSIBLE WHEREAS TRACK MARKETING HAS BEEN HIRED ON A ONESHOT BASIS BY SUCH AGENCIES AS LEO BURNETT SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES AND FOOTE CONE & BELDING COMMUNICATIONS' FCB/LEBER KATZ THE DEAL WITH NEEDHAM ENSURES THAT TRACK MARKETING WILL BE IN ON NEEDHAM'S CREATIVE AND MARKETING DECISIONS FROM THE BEGINNING OF CAMPAIGN DEVELOPMENT ALSO IF A GROUP OR PERFORMER IS HUNTING FOR A CONCERT SPONSOR AND USES TRACK MARKETING ODDS ARE NEEDHAM WILL GET FIRST CRACK TO SEE WHETHER ANY OF ITS CLIENTS WOULD BE INTERESTED STEPHEN P DESSAU PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TRACK MARKETING SAYS ONE POSSIBLE NEEDHAM CLIENT THAT IS UNDER DISCUSSION TO USE THE TRACK MARKETING CONNECTION IS HERSHEY FOODS OTHER CLIENTS THAT ARE LOGICAL CANDIDATES INCLUDE GENERAL MILLS CEREALS AND ANHEUSERBUSCH'S BUD LIGHT BEER KEITH L REINHARD CHAIRMAN AND CHIEF EXECUTIVE OF NEEDHAM SAYS THAT ALTHOUGH THE AGENCY COULD HAVE CONSIDERED PAIRING MUSIC ACTS WITH CLIENTS WE DIDN'T HAVE THE EXPERTISE KNOWLEDGE OR COMPETENCY TO DO IT THE PARTNERSHIP HE SAYS SUPPORTS BRAND STRATEGY AND EXPANDS NEEDHAM'S BASE FROM GENERAL ADVERTISING TO INCLUDE LIVE CONCERT TOURS IT IS A SERVICE WE HAVE THAT OTHER AGENCIES MAY NOT HAVE GIVEN THE DIFFERENT MUSIC FORMATS CLIENTS CAN TARGET WHICH AUDIENCE THEY WANT TO REACH FOR EXAMPLE FRITOLAY WANTED TO USE A COUNTRY ARTIST TO HELP INTRODUCE ITS SCOOP CHIP WHICH HAS A SHOVEL SHAPE SO DIP DOESN'T PLOP ONTO CLOTHING BOTH COUNTRY MUSIC AND FRITO HAVE BEEN AROUND FOR A LONG TIME SAYS STEVE SEARS A FRITOLAY MARKETING DIRECTOR COUNTRY MUSIC REEMERGED AS A HIP MUSIC FORMAT AND WE WANTED TO TIE OUR PRODUCT INTO THAT IMAGE TRACK MARKETING PLACED MS MCENTIRE ON A SHORT LIST OF POSSIBLE TOURS FOR FRITO TO SPONSOR NEEDHAM'S ARRANGEMENT WITH TRACK MARKETING WILL WORK BEST SAYS MR REINHARD WHEN A CLIENT WANTS TO REACH THE COLLEGE MARKET TRADITIONAL MEDIA MISS THIS GROUP HE SAYS WE NEEDED A BETTER WAY TO DELIVER THE MESSAGE AND HOOK INTO THE COLLEGE CROWD ANOTHER NEEDHAM CLIENT DISCOVER CARD SERVICES A UNIT OF DEAN WITTER DISCOVER FOR EXAMPLE SPONSORED A RECENTLY COMPLETED COLLEGE TOUR BY THE ROCK BAND BELLY DISCOVER USED THE TOUR TO TRY TO ENTICE COLLEGE STUDENTS TO REGISTER FOR THE CREDIT CARD AND TRACK MARKETING WAS INSTRUMENTAL IN CITIBANK VISA A CITICORP UNIT AND NONNEEDHAM CLIENT IT IS HANDLED BY INTERPUBLIC GROUP'S LOWE & PARTNERS/SMS SPONSORING A WEEKLY ACOUSTIC MUSIC SHOW COFFEE HOUSE SESSIONS HEARD ON 200 COLLEGE RADIO STATIONS LOWE WAS LOOKING FOR A COLLEGE ADVERTISING VEHICLE SAYS MR DESSAU AND THE SPONSORSHIP FOR THIS SHOW BECAME AVAILABLE MR REINHARD SAYS HE ISN'T BOTHERED BY TRACK MARKETING'S RELATIONSHIPS WITH OTHER AGENCIES WE'LL WORK THE CLOSEST WITH THEM HE SAYS AND MR DESSAU SAYS HIS SMALL NEW YORK FIRM IS NO THREAT TO AD AGENCIES UNLIKE SAY THE HOLLYWOOD TALENT FIRM CREATIVE ARTISTS AGENCY WHICH NOW PRODUCES VIRTUALLY ALL OF THE COCACOLA ADVERTISING WE AREN'T INTERESTED IN PRODUCING COMMERCIALS HE SAYS TRACK MARKETING ALSO HANDLES SOME NONCONCERT VENTURES THE MOST INTRIGUING ELVIS THE EXHIBITION INCLUDING MEMORABILIA FROM GRACELAND THE TOUR IS BOOKED INTO COLLEGE CAMPUSES AND MUSEUMS ACCORDING TO MR DESSAU INCLUDING THE VICTORIA & ALBERT MUSEUM IN LONDON WARNERLAMBERT SAID IT SELECTED TWO AD AGENCIES TO PICK UP THE 55 MILLION OF BILLINGS THAT WAS PREVIOUSLY HELD BY YOUNG & RUBICAM NEW YORK SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES UNIT WHICH ALREADY HANDLES SOME WARNERLAMBERT BRANDS INCLUDING ACTIFED AND SUDAFED WILL NOW ALSO PRODUCE ADS FOR BENADRYL CERTS AND TWO BRANDS OF BURST GUM BACKER SPIELVOGEL'S BILLINGS ARE EXPECTED TO INCREASE BY AT LEAST 40 MILLION WPP GROUP'S J WALTER THOMPSON WILL RECEIVE THE REMAINDER OF THE BILLINGS WITH EFFERDENT AND ROLAIDS 9404070006 940407 REVIEW & OUTLOOK EDITORIAL BAD NEWS MARKETS THE PLUNGE IN STOCK AND BOND PRICES WAS REVERSED TUESDAY WITH A SURGE OF 82 POINTS ON THE DOW SPARKED BY A DROP IN LEADING INDICATORS SO ALL'S WELL IN THE MARKETS STOCKS WILL SOAR BACK TO NEW PEAKS IF ONLY WE GET ENOUGH BAD NEWS FOR THE ECONOMY OR FOR ANOTHER WAY OF LOOKING AT IT THE MARKETS ARE SENSING SOMETHING PERVERSE NOT ONLY IN THE PLUNGE OVER THE PAST TWO WEEKS BUT IN TUESDAY'S RALLY ITSELF WHAT ARE THE MARKETS TRYING TO TELL US ALL EYES ARE ON THE FEDERAL RESERVE OF COURSE BECAUSE OF TWO QUARTERPOINTS BOOSTS IN ITS TARGET FEDERAL FUNDS RATE WHICH PRETTY MUCH SETS SHORTTERM INTEREST RATES LONG RATES NOT UNDER THE FED'S DIRECT CONTROL STARTED RISING WITH THE FIRST FED FUNDS BOOST AND WITH THE SECOND STOCK PRICES STARTED TO CAREEN THIS SLIGHT TIGHTENING OBVIOUSLY DID HAVE A TRIGGER EFFECT IF ONLY IN REMINDING EVERYONE THAT THE FED CAN'T KEEP PUMPING UP THE WHOLE ECONOMY FOREVER STILL PRICE STABILITY IS THE CENTRAL BANKER'S CALLING THE RAVAGING INFLATION OF THE 1970S WAS BROUGHT UNDER CONTROL AT GREAT EFFORT DURING THE 1980S IT WOULD BE A HUGE SHAME FOR THE FED TO THROW AWAY HARDWON ANTIINFLATIONARY CREDIBILITY AND BY ITS NATURE MONETARY POLICY HAS TO BE ADJUSTED ON THE BASIS OF ADVANCE INDICATORS BY THE TIME IT'S RECORDED IN THE CONSUMER PRICE INDEX YOU'RE ALREADY TOO LATE IN RECENT TESTIMONY CHAIRMAN GREENSPAN POINTED TO THREE INDICATORS THE GOLD PRICE FOREIGN EXCHANGE PRICES AND THE YIELD CURVE THE RELATION BETWEEN SHORTTERM AND LONGTERM INTEREST RATES THERE IS A STRONG CASE TO BE MADE THAT IS THAT IN ITS RECENT MOVES THE FED WAS ONLY DOING ITS JOB THERE IS A CASE TO BE MADE INDEED THAT IT DID TOO LITTLE THAT A MERE QUARTERPOINT BOOST WAS TAKEN AS A LACK OF DETERMINATION SITTING AT THE END OF THE TABLE LIKE BANQUO'S GHOST MEANWHILE IS THE CLINTON TAX INCREASE THE LIQUIDATION OF STOCKS AND BONDS COMES AFTER ALL JUST AS THE APRIL 15 INCOME TAX DEADLINE LOOMS THE BIG RETROACTIVE BOOST IN TAXES DOESN'T APPLY TO EVERYONE OF COURSE ONLY TO THE TYPES OF PEOPLE WHO OWN STOCKS AND BONDS THE TAX SEEMS ALMOST DESIGNED TO BE PAID OUT OF ASSETS RATHER THAN ONGOING INCOME AND ASSETS BEING LIQUIDATED TO PAY IT ARE NO DOUBT ONE FACTOR IN THE RECENT SLIDE MORE IMPORTANTLY TAX AND REGULATORY POLICY SET THE CONTEXT IN WHICH MONETARY POLICY MUST OPERATE IF GROWTH PROSPECTS IN THE REAL ECONOMY ARE HEALTHY THE FED CAN SUPPLY MORE MONEY WITHOUT CAUSING INFLATION AND SHOULD IF GROWTH IS CURBED BY HIGH TAXES AND CRIPPLING REGULATION MORE MONEY CAN SOMETIMES CAUSE A BURST OF PRODUCTION BUT SOON IS DISSIPATED INTO INFLATION THIS IS WHY HIGH INFLATION OFTEN APPEARS WITH LOW GROWTH A 05 FALL IN REAL GDP WITH A 135 RISE IN CONSUMER PRICES IN 1980 FOR EXAMPLE OUR OWN VIEW IS THAT INFLATION IS A MONETARY PHENOMENON INDEPENDENT OF THE GROWTH RATE THE PRESCRIPTION THAT FOLLOWS IS TO DEVOTE MONETARY POLICY TO PRICE STABILITY AND ADJUST THE INCENTIVES OF TAX AND REGULATORY POLICY TO PROMOTE GROWTH THIS VIEW PREVAILED DURING THE 1980S ESPECIALLY AT THE FEDERAL RESERVE AT THE MOMENT WE SEEM TO BE WITNESSING THE REEMERGENCE OF AN OPPOSITE IDEA THAT FISCAL POLICY IS A GIVEN BEING DEVOTED TO CONSTITUENCY POLITICS AND THAT IT'S UP TO MONETARY POLICY TO CONTROL BOTH GROWTH AND INFLATION INDEED THAT GROWTH CAUSES INFLATION AND THAT INFLATION CAN BE FOUGHT ONLY BY CURBING GROWTH SO THE FED'S JOB IS TO DECIDE WHEN PAIN HAS TO START AFICIONADOS OF ECONOMIC POLICY WILL RECOGNIZE THIS AS SOMETHING CALLED THE PHILLIPS CURVE AFICIONADOS OF MARKETS WILL RECOGNIZE ITS REEMERGENCE AS POISON AND A REASON TO SELL STOCKS ON GOOD NEWS AND BUY THEM ON BAD NEWS 9404070005 940407 US BANKNOTE TAPS GLOVER AS PRESIDENT AND OPERATIONS CHIEF NEW YORK US BANKNOTE CORP NAMED A FORMER TOP DUN & BRADSTREET CORP EXECUTIVE TO THE POSITION OF PRESIDENT AND CHIEF OPERATING OFFICER AS THE COMPANY STRUGGLES TO GAIN CLIENTS FOLLOWING THE LOSS OF A MAJOR CONTRACT EARLIER THIS YEAR RON K GLOVER MOST RECENTLY PRESIDENT AND CHIEF OPERATING OFFICER OF DUN & BRADSTREET'S INFORMATION SERVICES NORTH AMERICA UNIT RESIGNED FROM THE COMPANY IN SEPTEMBER HE ALSO IS A FORMER PRESIDENT OF THE TRAVELERSCHEQUE GROUP OF THE TRAVEL AND FINANCIAL SERVICES GIANT AMERICAN EXPRESS CO IN JANUARY US BANKNOTE LOST OUT ON A US POSTAL SERVICE PRINTING CONTRACT VALUED AT 330 MILLION OVER FIVE YEARS THE COMPANY HAD BEEN DOING ABOUT 24 MILLION IN ANNUAL POSTALSERVICE BUSINESS MORE THAN 10 OF ITS 1993 SALES OF 200 MILLION AFTER LOSING THE BID THE COMPANY SAID IT WOULD FOCUS ON ITS GROWING INTERNATIONAL BUSINESS US BANKNOTE'S INTERNATIONAL MARKET ACCOUNTED FOR ABOUT 25 OF 1993 REVENUE MR GLOVER 53 YEARS OLD SAID THAT IN ADDITION TO BALANCING THE DOMESTIC AND INTERNATIONAL OPERATIONS HE WANTS TO ESTABLISH STRONGER CUSTOMER RELATIONS THE BEST THING IS TO GET A LIST OF CUSTOMERS GO OUT KNOCKING ON DOORS AND TRY TO UNDERSTAND FROM THEM WHAT IS GOING ON WITH US BANKNOTE HE SAID MR GLOVER'S APPOINTMENT ENDS A SEARCH OF MORE THAN TWO MONTHS FOR A PRESIDENT AND OPERATIONS CHIEF AT THE LARGE PRIVATE SECURITY PRINTING COMPANY THOSE POSITIONS WERE TEMPORARILY HELD BY THE COMPANY'S CHIEF EXECUTIVE OFFICER MORRIS WEISSMAN WHO TOOK OVER AFTER THE SUDDEN RETIREMENT OF STANLEY KREITMAN WHOSE CONTRACT AT THE COMPANY WOULD HAVE EXPIRED AT THE END OF DECEMBER 1996 9404070004 940407 LETTERS TO THE EDITOR VILE ALLEGATIONS DISHONOR MY FAMILY BECAUSE WE HAVE ALWAYS CONSIDERED THE WALL STREET JOURNAL A REPUTABLE AND HONORABLE NEWSPAPER I WAS SHOCKED AND DISAPPOINTED BY AN OPINION COLUMN BY THOR HALVORSSEN THAT YOU RAN ON MARCH 4 UNDER THE HEADLINE THE PRICE OF VIGILANCE IN VENEZUELA'S BANKING COMMUNITY IT IS MY BELIEF THAT THE COLUMN WAS WRITTEN AND PUBLISHED BY MR HALVORSSEN AS PART OF HIS CONTINUING EFFORT TO DESTROY MY FAMILY NAME WITH VILE ALLEGATIONS NO LESS THAN THE DEA DRUG ENFORCEMENT AGENCY HAS BEEN QUOTED IN AN AP WIRE SERVICE STORY AND IN A NATIONAL PUBLICATION IN THE US AS SAYING THAT MR HALVORSSEN'S INFORMATION HAS PROVED TO BE UNRELIABLE MANIPULATIVE AND PLANTED IN HIS PIECE IN YOUR NEWSPAPER MR HALVORSSEN HAS ALSO INFLICTED HARM ON THE VENEZUELAN BANKING COMMUNITY I WAS BORN IN CUBA AND CAME TO VENEZUELA IN 1961 I HAVE BEEN A VENEZUELAN BUSINESSMAN FOR 33 YEARS AND HAVE ESTABLISHED OUR FAMILY NAME AS ONE OF THOSE THAT IS HELD IN HIGH REGARD IN THE FINANCIAL CIRCLE OF OUR COUNTRY MY FAMILY AND I HAVE ABSOLUTELY NO RELATION TO BANCO LATINO THE CONTENT OF MR HALVORSSEN'S COLUMN IS CURIOUS IN AND OF ITSELF HE BEGINS HIS ARTICLE DISCUSSING HIS PURSUIT OF ILLEGAL ACTIVITY IN BANCO LATINO ALLEGEDLY INVOLVING MONEY LAUNDERING AND THEN TAKES A COMPLETE LEFT TURN TO POINT HIS FINGER AT ME PERSONALLY THE ACCUSATION THAT MY SON INFLICTED BODILY HARM ON MR HALVORSSEN IS ABSURD DURING A RECENT TWOWEEK TRIAL IN MIAMI WHICH HE LOST TO ME MR HALVORSSEN HAD ALL THE OPPORTUNITY IN THE WORLD TO MAKE HIS ALLEGATIONS UNDER OATH BUT MR HALVORSSEN NEVER ALLEGED THAT MY SON ORLANDO HAD LAID A HAND ON HIM 9404070003 940407 WHAT'S NEWS BUSINESS AND FINANCE INDIVIDUAL INVESTORS FLEEING THE TURMOIL IN STOCKS AND BONDS POURED MORE THAN 76 BILLION INTO MONEYMARKET MUTUAL FUNDS IN THE LATEST WEEK THE INFLOW IS MORE THAN HALF THE 12 BILLION THAT WAS ADDED TO MONEY FUNDS IN THE FIRST QUARTER AND THE LARGEST WEEKLY INFLOW IN MANY MONTHS PRICES OF 30YEAR US TREASURY BONDS FELL 14 FROM JAN 28 TO APRIL 4 THE BIGGEST DOWNTURN SINCE 1987 HANDING STUNNING LOSSES TO AN ARRAY OF INVESTORS THE PLUNGE ALSO BROUGHT DOWN PRICES OF SOCALLED LATIN AMERICAN BRADY BONDS BRADY BONDS MANY BACKED BY TREASURYS HAVE LOST 30 STOCK MUTUAL FUNDS LOST 333 IN THE FIRST QUARTER THEIR WORST PERIOD IN 3 1/2 YEARS BUT THEY HELD UP BETTER THAN THE S&P 500STOCK INDEX WHICH FELL 379 TAXABLEBOND MUTUAL FUNDS ENDED THE QUARTER WITH A 247 LOSS ACCORDING TO A LIPPER SURVEY THE TEAMSTERS' STRIKE AGAINST 22 TRUCKING COMPANIES SUCCEEDED IN SHUTTING THEM DOWN AND SENDING THEIR CUSTOMERS SCRAMBLING FOR ALTERNATIVES MANY COMPANIES FOUND THEMSELVES INCONVENIENCED BUT NOT YET DAMAGED BY THE DIFFICULTIES IN MOVING GOODS AT&T COULD FACE A NEW REGULATORY HURDLE IN COMPLETING ITS 126 BILLION ACQUISITION OF MCCAW AS JUSTICE OFFICIALS WEIGH WHETHER TO CHALLENGE THE DEAL ON ANTICOMPETITIVE GROUNDS SALES OF NEW CARS AND LIGHT TRUCKS BOOMED IN MARCH RISING 20 FROM A YEAR EARLIER BUT SALES WERE SO HOT THAT SOME ANALYSTS PREDICTED A MARGINAL DROPOFF THIS MONTH AND IN MAY 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 STOCK PRICES WERE MIXED AND BOND PRICES EDGED HIGHER THE DOW JONES INDUSTRIAL AVERAGE GAINED 432 POINTS TO 367973 THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED 1/32 POINT ITS YIELD WAS 724 THE DOLLAR ROSE CONTINENTAL AIR IS IN TALKS WITH SEVERAL GROUPS ABOUT SELLING ITS CONTINENTAL EXPRESS COMMUTER DIVISION IT ALSO PLANS TO INCREASE ITS LOWFARE SHORTHAUL SERVICE FURTHER ON JUNE 15 CASINO STOCKS WERE POUNDED BY NEWS THAT MISSOURI VOTERS HAD NARROWLY REJECTED A STATE CONSTITUTIONAL AMENDMENT THAT WOULD HAVE ALLOWED SLOT MACHINES ON RIVERBOAT CASINOS THE SEC APPROVED A RULE THAT IS INTENDED TO LIMIT POLITICAL PATRONAGE IN THE MUNICIPALBOND BUSINESS SPRINT AND FIVE OTHER COMPANIES WERE GRANTED LICENSES FROM THE BRITISH GOVERNMENT TO EXPAND THEIR TELECOMMUNICATIONS SERVICES IN BRITAIN SEVERAL MEXICAN COMPANIES WILL BE HIT WITH FOREIGNEXCHANGE LOSSES AS A RESULT OF THE 83 DECLINE OF THE PESO AGAINST THE DOLLAR IN THE FIRST QUARTER A PROBE OF FORD'S TAURUS IS BEING STEPPED UP BY THE GOVERNMENT WHICH CITED REPORTS ABOUT BREAKS IN STEEL TIERODS THAT HELP STEER THE CAR'S WHEELS SOME HMOS ARE FUMING OVER DEFENSE DEPARTMENT METHODS AND CONTRACT SPECIFICATIONS IN AWARDING CONTRACTS UNDER A CIVILIAN HEALTH PLAN THE PENTAGON PROGRAM SPENDS MORE THAN 4 BILLION A YEAR TO COVER ITS SIX MILLION MEMBERS' MEDICAL COSTS ASIANPACIFIC STOCK MARKETS REBOUNDED BUT BROKERS SAID THE JUMPS OWE MORE TO TUESDAY'S SURGE IN US STOCKS THAN TO A CHANGE OF SENTIMENT MARKETS IN MALAYSIA SINGAPORE AND HONG KONG LED THE REGIONAL BOUNCE MEANWHILE IN TOKYO THE NIKKEI 225STOCK INDEX ROSE 13353 TO 1969674 BONDS LEHMAN BROTHERS TREASURY INDEX 512160 UP 1022 COMMODITIES OIL 1577 A BARREL UP THREE CENTS DOW JONES FUTURES INDEX 14003 UP 013 SPOT INDEX 13159 OFF 016 DOLLAR 10455 YEN UP 020 17165 MARKS UP 00025 9404070002 940407 TEAMSTERS STRIKE SHUTS DOWN FREIGHT CARRIERS ON FIRST DAY OF WALKOUT CUSTOMERS SCRAMBLE TO FIND ALTERNATIVES A WALL STREET JOURNAL NEWS ROUNDUP THE TEAMSTERS' STRIKE AGAINST 22 TRUCKING COMPANIES SUCCEEDED IN SHUTTING DOWN THOSE TRUCKERS SENDING THEIR CUSTOMERS SCRAMBLING TO FIND ALTERNATIVES ON THE FIRST DAY OF THE WALKOUT BY 75000 TRUCK DRIVERS AND DOCK WORKERS MANY COMPANIES FOUND THEMSELVES INCONVENIENCED BUT NOT DAMAGED BY THE DIFFICULTIES IN MOVING GOODS RETAILERS AND SUPERMARKETS WORKED OFF STOCKS THEY HAD RUSHED TO STORES OVER THE PAST WEEK SUPPLIERS TURNED TO NONUNION TRUCKERS AND RAIL COMPANIES MAJOR MANUFACTURERS FOCUSED ON WAYS TO KEEP PARTS FLOWING TO THEIR PLANTS IN THE COMING WEEK WHEN PARTS SUPPLIES COULD BECOME A PROBLEM THE STRIKE AGAINST LESSTHANTRUCKLOAD CARRIERS WHICH CONSOLIDATE SMALL SHIPMENTS INTO A SINGLE TRAILER IS SEEN HAMPERING LESS THAN 10 OF THE NATION'S ROUGHLY 150 BILLION IN INTERCITY TRUCKING AS A RESULT IT WON'T HAVE AN IMMEDIATE MASSIVE EFFECT ON THE US ECONOMY THIS IS A HUGE ECONOMY SO STRIKES NEED TO LAST A LONG TIME IN A VITAL AREA TO HAVE A SIGNIFICANT EFFECT ON THE OVERALL ECONOMY SAID ALLEN SINAI CHIEF ECONOMIST AT LEHMAN BROTHERS IN NEW YORK BUT THAT WILL CHANGE QUICKLY IF THE STRIKE PERSISTS THROUGH THE WEEKEND ANALYSTS AND CORPORATE TRANSPORTATION MANAGERS PREDICT WHEN PEOPLE DO WEEKEND SHOPPING ON FRIDAY AFTERNOON AND SATURDAY THE SHELVES WILL START TO EMPTY SAID ROBERT DELANEY EXECUTIVE VICE PRESIDENT OF CASS LOGISTICS INC A TRANSPORTATION INFORMATION COMPANY IN ST LOUIS INDEED THERE ALREADY ARE SIGNS THAT SOME COMPANIES ARE STRUGGLING TO KEEP UP AT SMITH'S FOOD & DRUG CENTERS INC WHICH HAS 131 STORES IN EIGHT WESTERN STATES DELIVERIES OF NONFOOD ITEMS HAVE SLOWED THE COMPANY TRIED TO DO SOME PREPARATORY STOCKING A SPOKESWOMAN SAYS IF THE STRIKE GOES ON LONGER THAN A WEEK IT WILL AFFECT OUR OPERATIONS SHE ADDED AT FORD MOTOR CO IT WON'T BE LONG BEFORE THE SYSTEM WILL JUST BOG DOWN SAID TRANSPORTATION DIRECTOR CHARLES WILKINS THERE IS NOT ENOUGH TRANSPORTATION CAPACITY TO ABSORB THIS SHUTDOWN WITHOUT SOME EFFECT ON MANUFACTURERS AND RETAILERS BIC CORP IS HOLDING BACK SOME SHIPMENTS OF PENS LIGHTERS AND SHAVERS TO MIDWESTERN AND WESTERN DESTINATIONS SAYS DAVE MORAWSKI THE MILFORD CONN COMPANY'S TRAFFIC MANAGER TWO NONUNION COMPANIES HAVE AGREED TO PICK UP SOME OF THE ROUTES INTO PENNSYLVANIA AND THE MIDWEST HE SAYS AND BIC IS USING PACKAGEDELIVERY COMPANIES TO MOVE OTHER SHIPMENTS BUT MR MORAWSKI WORRIES THAT THE COMPANIES THAT ARE OPERATING WON'T BE ABLE TO HANDLE THE LOAD IF THE STRIKE EXTENDS TO THE WEEKEND THEY WILL BACK UP AND SERVICE WILL DETERIORATE HE CONTENDS CLOSELY HELD RELIANCE LAMP CO HAS A MORE IMMEDIATE PROBLEM ON MONDAY THE HAUPPAUGE NY LAMP MAKER SENT 12 CARTONS OF ITS NEW MODEL LAMPS AND SHADES VIA ROADWAY EXPRESS A SUBSIDIARY OF ROADWAY SERVICES INC ONE OF THE STRUCK COMPANIES TO A FURNITURE TRADE SHOW IN HIGH POINT NC IF THE SHIPMENT DOESN'T ARRIVE RELIANCE WON'T BE ABLE TO SHOW ITS WARES TO RETAIL BUYERS SO THE COMPANY WILL TRY TO FIND A NONUNION COMPANY TO RETRIEVE THE SHIPMENT NOW STRANDED AT A ROADWAY TERMINAL IN WINSTONSALEM NC SAYS KEELY CARDINALE ASSISTANT TO THE PRESIDENT ALREADY COMPETITORS ARE STARTING TO REAP BENEFITS UNITED PARCEL SERVICE OF AMERICA INC SAID IT IS SEEING AN INCREASE IN CUSTOMER CALLS AND EXPECTS BUSINESS TO INCREASE THE ATLANTABASED COMPANY RECENTLY COMPLETED ITS OWN CONTENTIOUS NEGOTIATIONS WITH THE TEAMSTERS IN MEMPHIS TENN FEDERAL EXPRESS CORP SAID THAT SINCE MOST OF ITS BUSINESS IS OVERNIGHT DELIVERY IT DOESN'T EXPECT TO SEE ANY INCREASED BUSINESS FROM THE STRIKE YESTERDAY THERE WERE NO MAJOR SIGNS OF MOVEMENT BETWEEN THE TEAMSTERS AND TRUCKING MANAGEMENT INC THE NEGOTIATING ARM FOR THE 22 COMPANIES THE DISPUTE HAS BECOME A TEST OF WILLS BETWEEN UNION LEADERS TRYING TO PROTECT JOBS AND TRUCKING COMPANIES STRUGGLING TO HOLD TOGETHER IN THE FACE OF SEVERE COMPETITION FROM NONUNION COMPANIES THE MAIN STICKING POINT IS THE USE OF PARTTIME WORKERS WHICH THE TRUCKING COMPANIES SAY IS NEEDED TO REMAIN COMPETITIVE BUT THERE WERE SOME SIGNALS THAT THE COALITION OF COMPANIES MIGHT BEGIN TO SPLINTER AT A NEWS BRIEFING YESTERDAY TRUCKING MANAGEMENT'S GENERAL COUNSEL CHARLES O'CONNOR SAID THAT THE 18 SMALL MEMBERS OF THE GROUP WERE FREE TO SIGN INTERIM AGREEMENTS TO ALLOW THEM TO RESUME OPERATIONS I AM ASSUMING THAT THOSE COMPANIES WILL SIGN AGREEMENTS WITHIN THE NEXT 24 HOURS MR O'CONNOR SAID WHEN THE DISPUTE IS ULTIMATELY RESOLVED THE REGIONAL COMPANIES WILL BE BOUND BY THAT CONTRACT LATE TUESDAY CAROLINA FREIGHT CORP BROKE OFF FROM THE PACK AND AGREED TO LET THE FINAL CONTRACT BIND IT ALLOWING THE COMPANY TO AVOID THE WALKOUT IF THE 18 COMPANIES RETURN TO OPERATION THAT WOULD STILL LEAVE ON STRIKE ROUGHLY 70000 TEAMSTER EMPLOYEES AT THE FOUR MAJOR CORPORATIONS YELLOW CORP CONSOLIDATED FREIGHTWAYS INC ROADWAY SERVICES AND ARKANSAS BEST CORP IF THE STRIKE CONTINUES TEAMSTERS WHO HAVE WALKED OUT WON'T BE PAID FOR TWO WEEKS AFTER THAT STRIKING WORKERS WOULD RECEIVE 200 A WEEK AN AMOUNT THAT WOULD EXHAUST THE UNION'S STRIKE FUND IN A WEEK BUT THE UNION HAS LINED UP 80 MILLION IN CREDIT FROM THE AFLCIO AND THE UNION LABOR LIFE INSURANCE CO IN THE MEANTIME BIG AND SMALL COMPANIES ARE COPING CATERPILLAR INC THE PEORIA ILL CONSTRUCTIONEQUIPMENT MAKER PLANS TO USE OTHER TRUCKERS RAIL AND EXPRESS DELIVERERS AT THE BOOKSTOP STORE IN HOUSTON'S MONTROSE NEIGHBORHOOD CHRIS ENGLISH A SUPERVISOR IS TURNING TO OTHER SHIPPERS TO PICK UP CONSOLIDATED FREIGHTWAYS' USUAL TWO TO THREETIMESAWEEK DELIVERIES AFTER BEEBA'S CREATIONS INC A SAN DIEGOBASED WOMEN'S CLOTHING MAKER FOUND TWO TRUCKLOADS OF GARMENTS DELAYED BY THE STRIKE IT HIRED INDEPENDENT TRUCKERS TO PICK UP LOADS IN DALLAS AND THE MIDWEST FOR FLORIDA DELIVERY AND YOUNKERS INC A DES MOINES IOWA DEPARTMENTSTORE CHAIN IS TELLING VENDORS OF ALTERNATIVE SHIPPING ARRANGEMENTS THROUGH COMPANIES IN NEW YORK AND LOS ANGELES MOST COMPANIES HOPE THAT THE SIDES WILL REACH AN ACCORD SOON IN THE CHALLENGES WE ALL FACE IN THE MARKETPLACE I HATE TO SEE THINGS LIKE THIS HAPPEN SAID GEORGE KALAFUT EXECUTIVE VICE PRESIDENT OF AUTOPARTS DISTRIBUTOR GENUINE PARTS CO 9404070001 940407 ROBERTS PHARMACEUTICAL ACCORD EATONTOWN NJ ROBERTS PHARMACEUTICAL CORP SAID IT AGREED TO ACQUIRE US RIGHTS TO NITRODISC A NITROGLYCERIN SKIN PATCH USED TO TREAT HEART DISEASE FROM GD SEARLE & CO THE ACQUISITION FOR AN UNDISCLOSED SUM INCLUDES THE TRADEMARK INVENTORY PROMOTIONAL MATERIALS AND CUSTOMER LISTS SEARLE A UNIT OF MONSANTO CO WILL CONTINUE TO MAKE THE DRUG FOR ROBERTS THE 1992 US SALES OF ALL NITROGLYCERIN PATCHES WERE ABOUT 260 MILLION ACCORDING TO THE COMPANY 9404070138 940302 A DOG'S LIFE MAN'S BEST FRIEND CAN FIND HUNTING SEASON A TRIAL BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL SOME ANIMALSHELTER WORKERS HAVE A BONE TO PICK WITH HUNTERS THE NUMBER OF DOGS SHOWING UP AT ANIMAL SHELTERS DURING HUNTING SEASON IS AN ONGOING PROBLEM SAYS JEANNIE WOELKER ASSISTANT DIRECTOR AT THE NORTH FORK ANIMAL WELFARE LEAGUE IN SOUTHOLD TOWN ON NEW YORK'S LONG ISLAND WHEN WE ARE ALREADY OVERCROWDED AN ADDITIONAL 18 BEAGLES IS REALLY SPLITTING THE SEAMS A VARIETY OF BREEDS FROM BEAGLES TO RETRIEVERS GO OUT WITH THEIR OWNERS IN FALL AND WINTER IN SEARCH OF BIRDS RABBITS OR OTHER GAME BUT SOME OF THE DOGS ARE SCARED OFF BY GUNFIRE AND RUN AWAY LEAVING THEIR MASTERS BEHIND OTHERS INDIFFERENT TO THE SPORT MERELY FLIRT WITH A POTENTIAL CATCH AND THEN STROLL OFF AND EVEN STAUNCH HUNTERS INADVERTENTLY SEPARATE FROM THEIR OWNERS THE DOG SNIFFS OUT ITS TARGET AND TAKES OFF IN PURSUIT ROAMING DEEP INTO THE WOODS LATER THE OWNER IS UNABLE TO FIND THE ANIMAL AND LEAVES THE FOREST WITHOUT IT THE OWNER SAYS IT'S NOT A GOOD HUNTER' AND ABANDONS THE ANIMAL SAYS ROBERT DOWNEY EXECUTIVE DIRECTOR OF THE CAPITAL HUMANE SOCIETY IN LINCOLN NEB DOGS ARE OFTEN TAKEN TO SHELTERS BY ANIMALCONTROL WORKERS OR PRIVATE CITIZENS SHELTER WORKERS SAY THAT BECAUSE MANY OF THE DOGS ARE UNIDENTIFIED IT IS DIFFICULT TO REUNITE CANINE WITH MASTER TOM COLVIN SHELTER DIRECTOR OF THE ANIMAL RESCUE LEAGUE OF IOWA IN DES MOINES SAYS 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 ANNUALLY MR COLVIN SAYS THE SHELTER RECEIVES ABOUT 1000 HUNTING DOGS MOST OF WHICH START TURNING UP AT THE START OF HUNTING SEASON THE ADOPTION RATE FOR ABANDONED HUNTING DOGS AT THE LEAGUE IS ONLY 35 TO 45 THE SHELTERS ARE FRUSTRATED SAYS NICHOLAS GILMAN A SPOKESMAN FOR THE HUMANE SOCIETY OF THE US THE DOGS NEVER SOCIALIZE WITH HUMANS SO THEY WOULD MAKE VERY POOR PETS AND TOO OFTEN SHELTERS MUST MAKE THE DECISION TO EUTHANIZE BUT SOME GET LUCKY CAPITAL HUMANE SOCIETY'S MR DOWNEY SAYS THAT THE SOCIETY RECENTLY HOUSED A BEAUTIFUL CHESAPEAKE BAY RETRIEVER CALLED DUKE DUKE WAS PROBABLY NOT A GOOD HUNTER MR DOWNEY SAYS ADDING HE'S A LITTLE SHY LIKES BLANKETS PLAYS GAMES AND LOVES HAVING HIS STOMACH RUBBED WITH ALL THESE VIRTUES DUKE GOT ADOPTED QUICKLY SEE RELATED LETTERS LETTERS TO THE EDITOR STRONG BOND BETWEEN HUNTER AND DOG WSJ APRIL 7 1994 9403020175 YY94 MM04 9404070059 940304 THE AMERICAS THE PRICE OF VIGILANCE IN VENEZUELA'S BANKING COMMUNITY BY THOR HALVORSSEN EDITOR'S NOTE ON WEDNESDAY A VENEZUELAN JUDGE CHARGED 83 OF THE COUNTRY'S TOP BANKERS AND BUSINESSMEN WITH FRAUD CRIMINAL ASSOCIATION OR OTHER CRIMES STEMMING FROM THE JAN 13 COLLAPSE OF BANCO LATINO THE COUNTRY'S SECONDBIGGEST BANK THOSE CHARGED INCLUDE GUSTAVO GOMEZ LOPEZ WHO RESIGNED LAST DECEMBER AS CHAIRMAN OF BANCO LATINO AND THE COUNTRY'S TOP BANKING REGULATOR BANK SUPERINTENDENT ROGER URBINA CARLOS ANDRES PEREZ WAS VENEZUELA'S FIRST REELECTED PRESIDENT HIS 1989 COMEBACK HAD THE MAKINGS OF A NEW ERA IN THE DEVELOPMENT AND RESTRUCTURING OF VENEZUELA I HAD SERVED IN HIS FIRST TERM AND WAS EXCITED ABOUT THE POTENTIAL OF HIS SECOND A FEW WEEKS AFTER TAKING OFFICE PRESIDENT PEREZ DESIGNATED ME ANTIDRUG CZAR HE INSTRUCTED ME TELL THE AMERICANS THAT MINE WILL BE A TERM KNOWN FOR ITS COMMITMENT IN THE DRUG WAR AFTER ONE YEAR MY REPORTS ON MONEYLAUNDERING AND DRUGTRAFFICKING WERE NO LONGER WELCOMED BY THE PRESIDENT HOWEVER I WAS NOT DISMISSED SO I CONTINUED MY INVESTIGATIONS IN 1992 THE VENEZUELAN SENATE INSPIRED BY US SENATE INVESTIGATIONS CREATED AN ANTIMONEYLAUNDERING COMMISSION IN MARCH OF THAT YEAR I WAS APPOINTED SPECIAL OVERSEAS INVESTIGATOR FOR THAT COMMISSION AMONG THE BANKS I WAS INVESTIGATING WAS THE NOWDEFUNCT BANCO LATINO IT SEEMED INCONCEIVABLE TO ME THAT THIS BANK COULD MOVE THE ENORMOUS AMOUNTS OF MONEY THAT IT DID WITHOUT BEING INVOLVED IN SOME KIND OF MONEYLAUNDERING SCHEME I ALERTED THE US FEDERAL RESERVE AND THE NEW YORK DISTRICT ATTORNEY'S OFFICE OF MY SUSPICIONS I BELIEVED THE BANK WAS BEING USED IN A PONZI SCHEME THAT SOONER OR LATER WOULD HAVE TO FALL IN SEPTEMBER 1993 AN INFORMANT GAVE ME A BRIEF WITH INCONTROVERTIBLE EVIDENCE OF MONEYLAUNDERING IN VENEZUELAN BANKS THE LARGEST AMOUNT OF EVIDENCE CONCERNED BANCO LATINO SHORTLY AFTER I RECEIVED THAT EVIDENCE AN ATTEMPT WAS MADE ON MY LIFE FOILED ONLY BECAUSE I WAS NOT TRAVELING IN MY USUAL VEHICLE HOWEVER THE BRIEF WAS TAKEN FROM THAT CAR THE NEXT DAY AND ON TWO OTHER OCCASIONS I TOLD THE ACTING INTERIOR MINISTER CARLOS DELGADO CHAPELLIN THAT I WAS UNDER SURVEILLANCE AND THOUGHT IT WAS DUE TO THE BANCO LATINO INVESTIGATION I ASKED FOR HIS SUPPORT THOR THE DOORS TO MY OFFICE WILL ALWAYS BE OPEN TO YOU HE RESPONDED I IMMEDIATELY LEFT FOR NEW YORK TO MEET WITH MANHATTAN DISTRICT ATTORNEY ROBERT MORGENTHAU MORE THAN 90 OF VENEZUELAN INTERNATIONAL WIRE TRANSFERS GO THROUGH MANHATTAN AND ARE CONSEQUENTLY IN HIS JURISDICTION WHEN IN NEW YORK I RECEIVED A CALL FROM JESUS ABREU RIGHTHAND MAN OF BANCO LATINO CHAIRMAN GUSTAVO GOMEZ LOPEZ MR ABREU ASKED IF I COULD COME TO VENEZUELA RIGHT AWAY FOR A MEETING WITH THE BANK'S CHAIRMAN I SUSPECTED THAT THEY WANTED TO COME TO AN AGREEMENT FOR A PLEA BARGAIN A MEETING WAS SET FOR OCT 8 AT 11 AM A TREASURY AGENT IN NEW YORK WARNED ME THAT IT MIGHT BE A TRAP I TOOK NO HEED OF THIS WARNING I FLEW BACK TO VENEZUELA BUT THE DAY BEFORE THE MEETING MR GOMEZ LOPEZ'S SECRETARY CANCELED IT THE NEXT DAY I WAS ARRESTED BY THE VENEZUELAN TECHNICAL JUDICIAL POLICE AND CHARGED WITH MASTERMINDING A SERIES OF BOMBINGS THAT HAD ROCKED CARACAS DURING THE SUMMER NEITHER MY HOME NOR MY OFFICES WERE SEARCHED BY THE POLICE NO MEMBER OF MY FAMILY WAS INTERROGATED NO EVIDENCE WAS BROUGHT FORTH AGAINST ME NOT EVEN FABRICATED EVIDENCE THE ONLY THING USED TO KEEP ME IN CUSTODY WAS TESTIMONY EXTRACTED UNDER TORTURE FROM ONE OF MY ALLEGED COCONSPIRATORS IT IS CLEAR TODAY THAT THERE WAS NEVER ANY INTENTION TO CONVICT ME MY LIFE WAS TO BE TAKEN WHEN I WAS IN CUSTODY TWO DAYS AFTER MY ARREST ORLANDO CASTRO LLANES A MAN I HAD INVESTIGATED WENT TO THE POLICE WITH EVIDENCE TRYING TO LINK MY SUPPOSED INVOLVEMENT IN THE BOMBINGS WITH SOME OF HIS BANKING RIVALS HIS SON ORLANDO CASTRO CASTRO A BOARD MEMBER OF SEVERAL BANKS AND INSURANCE COMPANIES CAME WITH HIM AT THE TIME I WAS SITTING IN A ROOM IN THE HOMICIDE DEPARTMENT SUDDENLY I WAS HANDCUFFED AND THE FOUR OFFICERS ASSIGNED TO GUARD ME LEFT THE ROOM ORLANDO CASTRO CASTRO ENTERED THE ROOM AND STRUCK ME IN THE HEAD AND NECK HE THEN PUMMELED MY RIB CAGE FRACTURING THREE RIBS AFTER THE BEATING HE SAID THIS IS JUST THE BEGINNING BEFORE THE CEMETERY I WANT YOU TO GET THE FEELING OF IT THE YOUNG BANKER THEN LEFT ME BLEEDING ON THE FLOOR THE RESULT OF THE BEATING WAS VERIFIED AND PHOTOGRAPHED BY AN AMNESTY INTERNATIONAL REPRESENTATIVE A MEDICAL DOCTOR SENT FROM ENGLAND A MONTH AFTER THE EVENT THE EVIDENCE OF THE ATTACK WAS UNMISTAKABLE EVEN AFTER NEARLY 30 DAYS WHILE IN THE HANDS OF THE POLICE CHIEF ORLANDO JORDAN PETIT I WAS PSYCHOLOGICALLY AND PHYSICALLY TORTURED AND SENT TO A MAXIMUM SECURITY JAIL RETEN DE CATIA WHILE IN THE PRISON I WAS PUT IN A SECTION KNOWN AS THE PIT A PUNISHMENT CELL ANOTHER ATTEMPT WAS MADE ON MY LIFE THERE THE ASSASSINS PRISON INMATES FROM ANOTHER WING WERE SENT TO CELL 407 WHERE THEY TOOK THE LIFE OF THE TWO INMATES IMPRISONED THERE I WAS IN CELL 417 MY KNIGHT IN WHITE ARMOR ARRIVED IN THE FORM OF BRITISH WRITER DAVID YALLOP AN OLD FRIEND HE AND I HAD BEEN WORKING ON A BOOK ABOUT MONEYLAUNDERING IN VENEZUELA MR YALLOP BEGAN A MEDIA CAMPAIGN TO COUNTER THE ONE BEING WAGED AGAINST ME HIS EFFORTS WERE HALTED WHEN UNIFORMED MEMBERS OF THE POLICE FORCED HIM AT GUNPOINT TO LEAVE THE COUNTRY THE JUSTICE MINISTER FERMIN MARMOL LEON WHO HAD DECLARED ME GUILTY HOURS AFTER MY ARREST NOW STATED THAT MY LIFE COULD NOT BE GUARANTEED WHILE I WAS IN CUSTODY HOWEVER AFTER 74 DAYS OF IMPRISONMENT I WAS UNCONDITIONALLY RELEASED FORTUNATELY THE POLICE HAD NOT BOTHERED TO FABRICATE EVIDENCE AND LACK OF EVIDENCE WAS THE OFFICIAL REASON GIVEN FOR MY RELEASE IN FACT INTERNATIONAL PRESSURE EXERTED BY MR YALLOP THE MANHATTAN DISTRICT ATTORNEY BRITISH PARLIAMENTARIANS AND HUMANRIGHTS GROUPS SAVED MY LIFE THIS DEPLORABLE UNABASHED VIOLATION OF HUMAN AND CIVIL RIGHTS DEMONSTRATES THE EXTENT TO WHICH MEMBERS OF A CORRUPTED BANKING SYSTEM ARE WILLING TO GO TO ERADICATE THOSE WHO OPPOSE THEM THE NEW PRESIDENT RAFAEL CALDERA HAS SHOWN STRENGTH AND COURAGE IN HIS EFFORTS TO EXPOSE THE SCANDAL BEHIND BANCO LATINO AND OTHER BANKING INSTITUTIONS BUT THIS IS A SCANDAL THAT WILL NOT GO AWAY UNTIL THOSE RESPONSIBLE ARE PUNISHED THEIR INFLUENCE IN VENEZUELA WIPED OUT AND THEIR ILLACQUIRED WEALTH CONFISCATED MR HALVORSSEN WAS THE VENEZUELAN PRESIDENCY'S COMMISSIONER FOR ANTINARCOTIC AFFAIRS WITH THE RANK OF AMBASSADOR HE IS CURRENTLY A REGIONAL DIRECTOR OF THE INTERNATIONAL SOCIETY FOR HUMAN RIGHTS BASED IN FRANKFURT SEE RELATED LETTER LETTERS TO THE EDITOR VILE ALLEGATIONS DISHONOR MY FAMILY WSJ APRIL 7 1994 9403040087 YY94 MM04 SEE RELATED LETTER LETTERS TO THE EDITOR BANK DRIVEN TO FAILURE FOR POLITICAL REASONS WSJ APRIL 12 1994 9404070050 940308 MARTIN MARIETTA AGREES TO BUY GRUMMAN CORP OFFER TOTALING 19 BILLION PRESSES DEFENSE INDUSTRY FOR MORE CONSOLIDATION BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN MARIETTA CORP CAPPED A STREAK OF MAJOR ACQUISITIONS WITH AN AGREEMENT TO BUY GRUMMAN CORP FOR 19 BILLION INCREASING PRESSURE IN THE BELEAGUERED DEFENSE INDUSTRY FOR FURTHER CONSOLIDATION THE 55ASHARE TENDER OFFER FOR GRUMMAN'S 34 MILLION SHARES OUTSTANDING WILL BEGIN TODAY FOLLOWING APPROVAL BY BOTH COMPANIES' DIRECTORS AND SUBJECT ONLY TO ANTITRUST CLEARANCE THE PURCHASE WOULD MAKE MARTIN MARIETTA THE NATION'S LARGEST AEROSPACEELECTRONICS CONCERN AND ONE OF THE NATION'S BIGGEST OVERALL DEFENSE CONTACTORS WITH ABOUT 13 BILLION IN ANNUAL SALES MARTIN MARIETTA CHAIRMAN NORMAN AUGUSTINE ENGINEERED A 3 BILLION ACQUISITION OF GENERAL ELECTRIC CO'S AEROSPACE DIVISION LAST YEAR AND HAS AN AGREEMENT TO BUY GENERAL DYNAMICS CORP'S SPACELAUNCH BUSINESS FOR 2085 MILLION BUYING GRUMMAN WILL LOAD MARTIN MARIETTA WITH MORE NEW DEBT ON TOP OF ITS CURRENT 181 BILLION BUT IT ALSO WILL BRING THE BETHESDA MD COMPANY MAJOR GOVERNMENT INFORMATIONSERVICES BUSINESS AND VALUABLE CONTRACTS TO MAKE HIGHPRIORITY AIRPLANES FOR BATTLECOORDINATION AND SURVEILLANCE MARTIN MARIETTA SAID IT HAS COMMITMENTS FROM BANKAMERICA CORP'S BANK OF AMERICA UNIT AND JP MORGAN & CO'S MORGAN GUARANTY TRUST CO UNIT TO PROVIDE A TOTAL OF 24 BILLION IN UNSECURED FINANCING TO COMPLETE THE TENDER OFFER MR AUGUSTINE SAID THAT SOME OF THE DEBT MIGHT BE PAID DOWN WITH A 400 MILLION TO 500 MILLION STOCK OFFERING THAT WAS PREVIOUSLY UNDER CONSIDERATION EVEN WITHOUT AN EQUITY SALE THE ACQUISITION WOULD BE POSITIVE TO EARNINGS PER SHARE FROM DAY ONE HE ADDED INVESTORS VIEWED THE DEAL FAVORABLY AS SHARES IN MARTIN MARIETTA ROSE 1125 OR 28 TO CLOSE AT 46 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SHARES OF GRUMMAN SOARED 1425 OR 36 TO CLOSE AT 54125 THE ACQUISITION WOULD CONSIGN THE NAME OF ONCEMIGHTY JET MAKER GRUMMAN BASED IN BETHPAGE NY TO THE HISTORY BOOKS HOWEVER CHAIRMAN RENSO CAPORALI SAID THE COMPANY'S 18000 EMPLOYEES WILL BE BETTER OFF IN THE LONG TERM WITH A LARGER COMPANY WHILE SHAREHOLDERS WILL ENJOY A PRICE THAT IN ALL LIKELIHOOD WOULD NOT BE EXCEEDED IN VIEW OF TALKS THE COMPANY HAD WITH OTHER POSSIBLE BIDDERS THE OFFER IS SUBJECT TO THE TENDER OF AT LEAST TWOTHIRDS OF GRUMMAN'S SHARES GRUMMAN'S CLAIM TO FAME CAME IN THE JETFIGHTER BUSINESS BUILDING THE NOWCANCELED NAVY F14 FIGHTER ON LONG ISLAND AND THE COMPANY HAS BEEN SHRINKING STEADILY SINCE A RESTRUCTURING EARLIER THIS YEAR BROUGHT PLANS TO CLOSE 45 MILLION SQUARE FEET OF PLANT SPACE WHILE THE COMPANY HAD SOLID PROSPECTS FOR THE NEXT FOUR OR FIVE YEARS MR CAPORALI SAID THAT THE BIDDING ENVIRONMENT WAS SURE TO BECOME INCREASINGLY DIFFICULT FOR A SMALLER ENTERPRISE SQUARED OFF AGAINST EVERLARGER RIVALS IN AN ERA OF SHRINKING DEFENSE BUDGETS YOU CAN'T GET ALL WRAPPED UP IN SENTIMENTALITY HE ADDED MR AUGUSTINE SAID HIS AIM HAS BEEN TO MOVE QUICKLY AND DECISIVELY TO ENSURE LEADERSHIP IN CERTAIN FIELDS YOU WOULDN'T WANT TO BE THE LAST ONE STANDING AROUND WHEN THEY'RE PICKING PARTNERS HE ADDED THE GRUMMAN DEAL WILL HELP MARTIN MARIETTA BROADEN AND STRENGTHEN ITS INTERESTS BUT THE COMPANY ALREADY ENJOYS LEADERSHIP AS A PRODUCER OF TITAN ROCKETS FOR MILITARY LAUNCHES SPACESHUTTLE EXTERNAL TANKS AND HELLFIRE AND JAVELIN ANTITANK MISSILES ALONG WITH VARIOUS NONDEFENSE BUSINESSES SUCH AS NONMILITARY EXPLORATORY SPACECRAFT MARTIN MARIETTA'S BOLD MANEUVER WILL LEAVE OTHER MIDDLESIZE MILITARY CONTRACTORS STILL SCRAMBLING TO FIND MERGER PARTNERS IN THE FACE OF POSTCOLD WAR REALITIES OF FASTSHRINKING DEFENSE BUDGETS AS EACH DEAL GOES DOWN THE PICKINGS BECOME A LITTLE THINNER SAID ANALYST JERRY CANTWELL OF LIONHEART SECURITIES AMONG THOSE STILL SEARCHING IS NORTHROP CORP WHICH PEOPLE CLOSE TO THE SITUATION SAY HAD BEEN EXPLORING MERGER TALKS WITH GRUMMAN AFTER LOSING OUT IN CONTESTS TO ACQUIRE A MAJOR DIVISION OF INTERNATIONAL BUSINESS MACHINES CORP THAT WENT TO LORAL CORP AND FOR GENERAL DYNAMICS' TACTICALFIGHTER BUSINESS WHICH WAS PURCHASED BY LOCKHEED CORP A SPOKESMAN FOR NORTHROP DECLINED COMMENT GRUMMAN'S MR CAPORALI SAID THE IDENTITY OF OTHER POSSIBLE BIDDERS MIGHT BECOME CLEARER WHEN DISCLOSURE DOCUMENTS ARE FILED TODAY SOME OBSERVERS SAID THEY DON'T BELIEVE THE ACQUISITION WILL GET MIRED IN AN ANTITRUST REVIEW ALTHOUGH THE CLINTON ADMINISTRATION'S ATTITUDE TOWARD DEFENSEINDUSTRY MERGERS HAS BEEN DIVIDED THE PENTAGON LED BY GENERAL COUNSEL JAMIE GORELICK HAS SUPPORTED THEM WHILE THE JUSTICE DEPARTMENT HAS EXPRESSED SOME CONCERN THE RECENT SELECTION OF MS GORELICK FOR THE NO 2 SLOT AT THE JUSTICE DEPARTMENT IS LIKELY TO RESULT IN A MORE BENIGN VIEW OF DEFENSE CONSOLIDATIONS THERE BUT THE JUSTICE DEPARTMENT AND THE FEDERAL TRADE COMMISSION MUST FIRST DECIDE WHICH AGENCY WILL REVIEW THE ACQUISITION MARY LOU STEPTOE DIRECTOR OF THE FTC'S BUREAU OF COMPETITION WOULDN'T COMMENT ON THE CURRENT TRANSACTION BUT SAID THE COMPETITIVE PROCESS IS IMPORTANT TO PROTECT EVEN IN A DOWNSIZING SITUATION STEVEN NEWBORN A FORMER FTC LAWYER NOW IN THE WASHINGTON DC OFFICE OF THE ROGERS & WELLS LAW FIRM SAID THIS IS A HUGE MERGER IN THE DEFENSE INDUSTRY IF THERE ARE AREAS WHERE THEY COMPETE THEN THIS DEAL WILL BE CAREFULLY SCRUTINIZED BY THE AGENCIES THE CHAIRMEN OF BOTH DEFENSE COMPANIES SAID THEY DON'T ANTICIPATE ANY ANTITRUST PROBLEMS THE MEN BOTH PRINCETON UNIVERSITY ENGINEERING GRADUATES ARE LONGTIME ACQUAINTANCES AND THEY HAD FLIRTED FOR MONTHS WITH THE NOTION OF A COMBINATION OF THE TWO COMPANIES BUT MOVEMENT TOWARD A DEAL PICKED UP SPEED AT A DINNER IN EARLY FEBRUARY AT THE GARDEN CITY HOTEL ON LONG ISLAND WHERE THE TWO EXECUTIVES MET WITH SEVERAL OTHER ADVISERS INCLUDING DAVID BAUM A SENIOR MANAGER FROM THE GOLDMAN SACHS & CO INVESTMENT BANKING CONCERN REPRESENTING GRUMMAN BEAR STEARNS & CO IS THE FINANCIAL ADVISER TO MARTIN MARIETTA AND DEALER MANAGER FOR THE TENDER OFFER TWO WEEKS LATER MARTIN MARIETTA PRODUCED ITS 55ASHARE OFFER BY LAST FRIDAY 90 OF THE DETAILS WERE WRAPPED UP MR AUGUSTINE SAID AND THE DEAL WAS SCHEDULED TO BE ANNOUNCED AROUND THE MIDDLE OF THIS WEEK BUT THE EXECUTIVES BECAME CONCERNED WHEN GRUMMAN'S SHARES SPIKED 3125 A SHARE FRIDAY PEOPLE CLOSE TO THE COMPANIES SAID THE EXECUTIVES FEARED THAT WORD OF THE TALKS WAS LEAKING BUT THE BASIS FOR THE RISE MIGHT HAVE BEEN A POSITIVE REPORT ON GRUMMAN THURSDAY BY A MERRILL LYNCH & CO ANALYST THE PEOPLE SAID NONETHELESS ON FRIDAY NIGHT THE TWO EXECUTIVES DINED AT AN INN IN PRINCETON JUST TO FINALIZE ALL THE DETAILS TO GET US HERE TODAY MR AUGUSTINE SAID THE DEAL WAS APPROVED BY BOTH BOARDS OF DIRECTORS SUNDAY EVENING GRUMMAN'S MAJOR CONTRACTS INCLUDE THE NAVY'S E2C HAWKEYE EARLYWARNING AIRCRAFT THE PENTAGON HAS PROPOSED SPENDING 3977 MILLION ON HAWKEYE PROGRAMS IN THE FISCAL YEAR STARTING OCT 1 MAINLY TO BUY FOUR OF THE CARRIERBASED PLANES UP FROM JUST 559 MILLION IN FISCAL 1994 THE COMPANY'S OTHER MAJOR AIRBORNE SURVEILLANCE SYSTEM IS THE AIR FORCE AND ARMY JSTARS JOINT SURVEILLANCE TARGET ATTACK RECOGNITION SYSTEM WHICH IS INTENDED TO DO FOR GROUND WARFARE WHAT THE AWACS SYSTEM DID FOR AIR COMBAT HELP COMMANDERS PLAN AND CONTROL THEIR ATTACK PROVIDE CONSTANT SURVEILLANCE OF THE BATTLEFIELD AND THEN ASSESS THE SUBSEQUENT DAMAGE PENTAGON SPENDING ON THE JSTARS SYSTEM HAS BEEN DECLINING SLOWLY IN RECENT YEARS WITH A PROPOSED FISCAL 1995 FUNDING OF 8022 MILLION GRUMMAN ALSO HAS CONTRACTS IN OTHER AREAS OF DEFENSE ELECTRONICS COMMERCIALAIRCRAFT STRUCTURES AND COMPUTER INFORMATION SYSTEMS AND SOFTWARE MARTIN MARIETTA HAS ALMOST 93000 EMPLOYEES IN SEVEN OPERATING GROUPS INCLUDING ELECTRONICS SPACE INFORMATION SERVICES MATERIALS ENERGY AND THE SANDIA NATIONAL LABORATORIES WHILE NO NEW PLANS TO SELL OFF PARTS OF EITHER COMPANY HAVE BEEN HATCHED GRUMMAN WILL FOLLOW THROUGH WITH PLANS TO SELL A DIVISION THAT MAKES ALUMINUM VEHICLES MARTIN MARIETTA RECENTLY SPUN OFF ITS CONSTRUCTIONMATERIALS BUSINESS TO RAISE MONEY FOR DEBT REDUCTION WITH THE GRUMMAN ACQUISITION MR AUGUSTINE SAID THE COMPANY'S DEBT AS A PERCENTAGE OF TOTAL CAPITAL COULD REACH 55 IF THERE ISN'T A STOCK OFFERING BUT IT COULD BE REDUCED TO LESS THAN 50 BY YEAR END WITH STEADY REDUCTION AFTER THAT IN 1993 MARTIN MARIETTA HAD RECORD OPERATING PROFIT BEFORE THE RECOGNITION OF ACCOUNTING CHANGES OF 4503 MILLION OR 380 A SHARE UP 30 FROM 1992 NET INCOME SALES JUMPED 58 TO 944 BILLION GRUMMAN HAD 1993 PROFIT FROM OPERATIONS BEFORE A RESTRUCTURING CHARGE OF 1205 MILLION OR 350 A SHARE COMPARED WITH YEAREARLIER PROFIT FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGES OF 1199 MILLION OR 349 A SHARE SALES DROPPED 7 TO 325 BILLION FROM 35 BILLION LESLIE SCISM IN NEW YORK AND JOE DAVIDSON AND THOMAS E RICKS IN WASHINGTON CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR GRUMMAN'S FIGHTERS HELPED WIN WWII WSJ APRIL 7 1994 9403080085 YY94 MM04 9404070049 940218 LAW LEGAL BEAT COURT MAY CONSIDER SOME LIMITS ON JURIES' ROLE IN PATENT LAWSUITS BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL ARE SOME LAWSUITS JUST TOO COMPLEX FOR JURIES SOME PATENT LAWYERS THINK SO AND AN INFLUENTIAL COURT IS ABOUT TO WEIGH IN ON THE QUESTION IN 1992 AMERICAN TELEPHONE & TELEGRAPH CO WAS SUED IN MIDLAND TEXAS BY A PARTNERSHIP THAT CLAIMED THE COMPANY HAD VIOLATED A PATENT COVERING DIGITAL SWITCHING EQUIPMENT PATENT 3956593 AN INGENIOUS AND NOVEL MODULARIZATION OF THE TIME AND SPACE SWITCH ELEMENTS MEANT A LOT TO ITS PROUD OWNERS BUT AT&T LAWYERS WONDER WHETHER IT MEANT ANYTHING TO THE TEXAS JURY WHICH AWARDED 35 MILLION TO THE PARTNERSHIP AFTER A ONEWEEK TRIAL THE JURY WAS UNEMPLOYED LABORERS AND HOUSEWIVES THEY DON'T UNDERSTAND THAT STUFF SAYS ALBERT FEY A NEW YORK ATTORNEY WHO REPRESENTED AT&T YOU CANNOT TEACH A PHD IN ENGINEERING HOW THAT SUCKER WORKS IN TWO WEEKS MR FEY SAYS TO TAKE A BUNCH OF JURORS THAT DIDN'T GET PAST THE EIGHTH GRADE AND TRY TO DO IT IN A WEEK THE CHANCE IS ZERO THE DECISION WAS REVERSED ON APPEAL NOW THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT MAY BE PREPARED TO PUT SOME LIMITS ON THE ROLE OF JURIES IN PATENT CASES IT ACCEPTED THREE CASES FOR REVIEW THIS SPRING IN WHICH IT HAS ASKED THE PARTIES TO ADDRESS THE ISSUE THE COURT IS ESSENTIALLY THE LAST WORD ON PATENT LAW IN THE US SO ITS EVENTUAL RULINGS COULD HAVE A FARREACHING IMPACT ON WHAT HAS BEEN A LUCRATIVE AND FASTGROWING SPECIALTY THE QUESTION OF WHETHER LAY JURIES ARE EQUIPPED TO HANDLE COMPLICATED EVIDENCE HAS BEEN DEBATED BEFORE OVER THE YEARS IT HAS POPPED UP IN THE ANTITRUST FIELD WHERE SOME JUDGES HAVE DISMISSED CASES ON THE THEORY THAT THEY ARE SO COMPLICATED THAT DEFENDANTS ARE DENIED A FAIR TRIAL AND DUE PROCESS OF LAW EXPERTS HAVE CALLED FOR THE APPOINTMENT OF SPECIALLYTRAINED JUDGES TO HEAR COMPLEX CASES AS A WAY OF ASSURING UNIFORMITY AND FAIRNESS BUT OTHERS WORRY THAT SUCH PROPOSALS CLASH WITH THE RIGHT TO A JURY TRIAL GUARANTEED UNDER THE US CONSTITUTION NOWHERE IS THE DEBATE HOTTER THAN IN THE ARCANE WORLD OF PATENTS WHICH HAS SEEN A RAPID INCREASE IN BOTH THE NUMBER OF SUITS AND THE SIZE OF JURY VERDICTS IN RECENT YEARS CRITICS OF THE CURRENT SYSTEM CONTEND THAT PLAINTIFFS HAVE AN EDGE IN SUCH CASES BECAUSE JURIES TEND TO FAVOR SMALL INVENTORS AGAINST BIG COMPANIES WHEN THE TECHNICAL ISSUES ARE UNCLEAR THAT PROSPECT IS ALSO A MAJOR FACTOR IN MANY COMPANIES' DECISIONS TO SETTLE PATENT DISPUTES BEFORE TRIAL ATTORNEYS SAY THERE ARE MANY LAWYERS WHO BELIEVE THEY CAN BENEFIT BY JURY CONFUSION IN PATENT CASES SAYS MARTIN J ADELMAN A PROFESSOR SPECIALIZING IN PATENT LAW AT WAYNE STATE UNIVERSITY IN DETROIT AS A RESULT HE CONTENDS YOU HAVE A SYSTEM OF JUSTICE THAT IS BASICALLY A LOTTERY GIVE JURORS A COMPLICATED BIOTECHNOLOGY CASE OR ONE INVOLVING LASERS OR COMPUTERS AND THEIR EYES GLAZE OVER ADDS DONALD DUNNER A WASHINGTON LAWYER WHO HAS TRIED MANY PATENT CASES PLAINTIFFS' LAWYERS ARGUE STRONGLY THAT PATENT CASES ARE NO MORE ABSTRUSE THAN MANY OTHER KINDS OF LAWSUITS THEY CONTEND THAT CRITICS UNDERESTIMATE THE ABILITY OF JURIES TO UNDERSTAND SCIENTIFIC AND TECHNICAL DATA THEY PICK UP ON THE KEY ISSUES AND THEY THINK IT THROUGH SAID JOSEPH A GREAR A CHICAGO PATENT ATTORNEY WHO OPPOSED MR FEY IN THE AT&T CASE GERALD D HOSIER A LAS VEGAS ATTORNEY WHO REPRESENTS INVENTORS IN PATENT DISPUTES SAYS THE CHANGES THAT ARE BEING CONTEMPLATED BY THE COURT REFLECT A PHILOSOPHICAL SHIFT TOWARD CUTTING BACK THE RIGHTS OF INVENTORS I THINK THAT IS A VERY DANGEROUS PROPOSITION HE SAID IT INVADES A CONSTITUTIONAL RIGHT AND IT THREATENS THE INTEGRITY OF THE PATENT SYSTEM AMONG THE ISSUES THE COURT PLANS TO CONSIDER IS THE RESPECTIVE ROLE OF JUDGES AND JURIES IN INTERPRETING THE CLAIMS THAT INVENTORS MAKE IN THEIR PATENTS SUCH CLAIMS ARE FREQUENTLY CRUCIAL TO PATENT DISPUTES BECAUSE THEY DEFINE THE SCOPE OF THE INVENTION AND THUS THE RIGHT OF THE INVENTOR TO SUE OTHERS FOR VIOLATIONS THE COURT ALSO INDICATED IT WILL DECIDE WHETHER JURIES SHOULD HAVE A ROLE IN APPLYING A RULE OF LAW THAT ALLOWS FOR A FINDING OF PATENT INFRINGEMENT WHEN THE DEFENDANT'S PRODUCT FALLS OUTSIDE THE LITERAL LANGUAGE OF THE PLAINTIFF'S PATENT THE CASES ARE EXPECTED TO BE ARGUED BEFORE THE FULL 12SEAT APPEALS COURT THIS SPRING THIS ISN'T JUST SOME HYPERTECHNICAL AREA OF PATENT LAW SAID STEVEN D GLAZER A NEW YORK ATTORNEY THESE TWO DECISIONS WILL PROBABLY IMPLICATE JUST ABOUT ANY CASE THAT COMES DOWN THE PIKE NOTED CONSUMER ACTIVIST RALPH NADER HARVARD LAW PROFESSOR ARTHUR R MILLER AND OTHER MEMBERS OF THE HARVARD LAW SCHOOL CLASS OF 1958 LAUNCHED AN UNUSUAL PUBLICSERVICE PROJECT CALLED THE APPLESEED FOUNDATION THE NONPROFIT CORPORATION WILL OPEN OFFICES AROUND THE COUNTRY CALLED CENTERS FOR LAW IN THE PUBLIC INTEREST THE OFFICES WILL TRY TO CREATE SOCIAL CHANGE NOT ONLY BY FILING LAWSUITS BUT ALSO BY ORGANIZING AND EDUCATING COMMUNITIES MORE THAN 20 LAWYERS INCLUDING PARTNERS AT MAJOR LAW FIRMS NATIONALLY WILL SIT ON APPLESEED'S BOARD SEE RELATED LETTER LETTERS TO THE EDITOR COURT GOES TOO FAR IN LIMITING JURY ROLE WSJ APRIL 7 1994 9402180094 YY94 MM04 9404060170 940406 VOODOO POLITICS IN IMPOVERISHED HAITI TAKING SIDES CAN BE A LIFE OR DEATH MATTER ARISTIDE'S RIGHTWING FOES USE VIOLENCE BLACK MAGIC TO CUT DOWN HIS ALLIES SHANTYTOWN'S FACELESS BODY BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL PORTAUPRINCE HAITI A SMALL CROWD GATHERS AROUND A CORPSE SPRAWLED IN THE MIDDLE OF A MARKET STREET IN CITE SOLEIL THIS CITY'S MOST FETID SLUM WOMEN CONTINUE TO SELL CHARCOAL SUGARCANE STALKS AND ORANGES AS MULTICOLORED BUSES MANEUVER BETWEEN POOLS OF MUDDY WATER AND THE BODY WHICH HAS BEEN SHROUDED WITH A PLASTIC TABLECLOTH THEN A SMALL BOY LIFTS THE COVERING THE CROWD SHUDDERS WAILS AND TURNS AWAY THE DEAD MAN HAS NO FACE BUT HE HAS A NAME DADY PIERRE A 33YEAROLD SUPPORTER OF PRESIDENT JEANBERTRAND ARISTIDE WHO WAS OVERTHROWN AND EXPELLED FROM HAITI BY THE ARMY IN SEPTEMBER 1991 MACHETEWIELDING ASSASSINS GOT TO MR PIERRE THE NIGHT BEFORE I KNOW HIS BODY I KNOW HIM SAYS HIS WIFE SOLANGE I SAW THE TOP OF HIS HEAD HIS EARS HIS FEET AN HOUR LATER AN INTERNATIONAL HUMANRIGHTS TEAM ROLLS UP IN A WHITE JEEP THEY TAKE PHOTOGRAPHS AND QUESTION THE WIDOW IT'S TERRIBLE SAYS A MEMBER OF THE OBSERVER TEAM EACH DAY THREE FOUR OR FIVE BODIES ARISTIDE SUPPORTERS AND WE DON'T GET TO ALL OF THEM WHO KILLED MR PIERRE IN THIS SLUM SO CROWDED THAT SOME PEOPLE TAKE TURNS SLEEPING IN TINY TINANDCARDBOARD SHACKS BODIES OF ARISTIDE SUPPORTERS APPEAR EACH DAY FROM THE BEGINNING OF THE YEAR THROUGH MIDMARCH AT LEAST 96 PEOPLE WERE KILLED UNITED NATIONS OFFICIALS SAY SOME HAVE BEEN TURNING UP LIKE MR PIERRE MUTILATED NO ONE KNOWS WHO THE KILLERS ARE BUT EVERYONE SUSPECTS WHO THEY ARE ATTACHES AS PARAMILITARY POLICE INFORMERS ARE CALLED AND MEMBERS OF THE FRONT FOR THE ADVANCEMENT AND PROGRESS OF HAITI OR FRAPH A MILITARYLINKED ORGANIZATION THAT IS THREATENING TO BECOME A POLITICAL MOVEMENT AS THE PROSPECT OF PRESIDENT ARISTIDE'S RETURN FADES VIOLENT REPRESSION HAS INCREASED SHARPLY IN HAITI ESPECIALLY IN THE PORTAUPRINCE SLUMS WHICH ARE PRESIDENT ARISTIDE'S STRONGHOLDS MORE AND MORE THE FUTURE OF THE COUNTRY APPEARS TO BE A MIXTURE OF THE TERROR BUFFOONERY AND STRUCTURE THAT CHARACTERIZES FRAPH PRONOUNCED FRAP LIKE THE FRENCH AND CREOLE VERB MEANING HIT A RIGHTWING GROUP MANY HERE FEAR IS A REINCARNATION OF THE LATE DICTATOR FRANCOIS DUVALIER'S DREADED MILITIA THE TONTON MACOUTES WELL FUNDED AND SUPPORTED BY THE ARMY HAITI'S ONLY REAL POWER FRAPH HAS METASTASIZED THROUGHOUT THE COUNTRY NOW BRIGHTLY PAINTED FRAPH OFFICES SOMETIMES WRAPPED IN HUGE BLUE AND RED HAITIAN FLAGS CAN BE FOUND IN DISTANT VILLAGES DEPENDING ON WHICH FRAPH OFFICIAL ONE TALKS TO THE ORGANIZATION'S MEMBERSHIP IS EITHER 150000 OR 300000 AND GROWING AMONG THE ILLITERATE CREOLESPEAKING POOR IT DOESN'T TAKE MUCH TO BUY A MAN'S ALLEGIANCE FOR A SMALL MEMBERSHIP FEE FRAPH SAYS ABOUT 5 MEMBERS GET A YELLOW MEMBERSHIP CARD THAT SOME SLUM RESIDENTS SAY IS A LICENSE TO EXTORT AND STEAL HUMANRIGHTS MONITORS HOWEVER SAY THAT IN THE SLUMS HERE FRAPH HAS BEEN PAYING PEOPLE BETWEEN 13 AND 24 DOLLARS TO JOIN A TIDY SUM IN A NATION WITH PERCAPITA ANNUAL INCOME OF 205 SOMETIMES ALONG WITH THE CARDS GO FIREARMS AND THE PRESTIGE AND POWER THAT CARRYING THEM BRINGS NOT SO REPLIES GABRIEL ST ULYSSE THE FRAPH LEADER IN MERGERGRESSIER A SMALL TOWN A FEW MILES FROM THE OPEN SEWERS AND CRATERED STREETS OF THE CAPITAL A STRAPPING MAN WITH A COMMANDING PRESENCE AND A FIXED SMILE MR ST ULYSSE SAYS FRAPH IS A MOVEMENT OF HAITI'S PEACELOVING PEOPLE WHO HAVE BANDED TOGETHER AGAINST THE VIOLENCE AND ANARCHY REPRESENTED BY PRESIDENT ARISTIDE A ROMAN CATHOLIC PRIEST AND ADVOCATE OF SOCIAL JUSTICE THE COUNTRY HAS LOST ITS FINER FACE SAYS MR ST ULYSSE WE WANT TO SEE IT BECOME BEAUTIFUL AGAIN HALF THE TOWN'S 3000 RESIDENTS HAVE JOINED FRAPH HE SAYS MR ST ULYSSE IS EXPLAINING HOW SURPRISED HE IS THAT PEOPLE CALL FRAPH A PARAMILITARY GROUP WHEN A YOUNG MAN DRAWS HIMSELF UP AND SNAPS TO ATTENTION MR ST ULYSSE DISMISSES THE MAN THE SALUTE IS BECAUSE HE WORKS IN THE RURAL POLICE AS I DO HE SAYS BUT WE DON'T HAVE A MILITARY STRUCTURE MEMBERS OF PRESIDENT ARISTIDE'S MOVEMENT LAVALAS SAY THAT FRAPH HAS BEEN ABLE TO LURE SUPPORTERS OF THE DEPOSED PRESIDENT WITH PROMISES OF FOOD MONEY AND IN SOME CASES THREATS THEY TELL PEOPLE THAT IF THEY DON'T JOIN FRAPH THEN WE WILL KILL YOU SAYS JOCELYN CIMEUS AN ARISTIDE WORKER WHO IS IN HIDING THERE IS NO OTHER WAY TO SURVIVE IT IS DIFFICULT TO PIN INDIVIDUAL KILLINGS ON FRAPH BUT JUAN MENDEZ EXECUTIVE DIRECTOR OF HUMAN RIGHTS WATCH/AMERICAS IN NEW YORK SAYS FRAPH IS RESPONSIBLE FOR MANY OF THE WORST HUMANRIGHTS ABUSES COMMITTED IN HAITI IN RECENT MONTHS MR MENDEZ WHOSE ORGANIZATION WILL SOON RELEASE A STUDY OF HAITI'S WORSENING RIGHTS SITUATION SAYS FRAPH FUNCTIONS AS A SURROGATE OF THE MILITARY AND HAS COMMITTED VIOLENT THUGGERY AND ASSASSINATIONS AMONG OTHER THINGS AND US DIPLOMATS THE ORGANIZATION OF AMERICAN STATES AND THE UN WHICH IS INVESTIGATING A DOZEN RAPES THAT ARE BELIEVED TO BE POLITICALLY MOTIVATED HOLD FRAPH RESPONSIBLE FOR SHOOTING UP AND BURNING A LARGE SWATH OF CITE SOLEIL TWO DAYS AFTER CHRISTMAS FOLLOWING THE SLAYING OF THE FRAPH TREASURER IN CITE SOLEIL DOZENS OF THUGS DESCENDED ON THE SHANTYTOWN USING GASOLINE TO LIGHT THE DENSELY PACKED DWELLINGS THEY ALSO BEGAN FIRING GUNS INTO THE HOVELS THE BLAZE SWEPT THROUGH AN AREA SEVERAL FOOTBALL FIELDS LONG NO FIRE TRUCKS CAME FOR SEVEN HOURS THEY TOOK PEOPLE AND THREW THEM INTO THE FIRE SAYS MR CIMEUS WHOSE SHANTY BURNT THEY SHOT PEOPLE PERHAPS AS MANY AS 860 HOUSES WERE DESTROYED ESTIMATES OF THE DEAD RANGE AS HIGH AS 50 LEADERS OF FRAPH DENY IT HAD ANYTHING TO DO WITH THE FIRE WHICH THEY SAY WAS SET BY ARISTIDE SUPPORTERS TO DISCREDIT FRAPH IF IT HAD BEEN ME THERE WOULD BE NO MORE CITE SOLEIL SAYS EMMANUEL TOTO CONSTANT FRAPH'S SECRETARY GENERAL THE SKINNY 37YEAROLD MR CONSTANT WHOSE FATHER COMMANDED PAPA DOC DUVALIER'S ARMY FOR EIGHT YEARS IS ONE OF THE TWO TITULAR HEADS OF FRAPH SITTING IN A TALL WICKER CHAIR IN THE BACKYARD OF HIS LARGE PORTAUPRINCE HOUSE WHICH SEEMS TO SERVE AS FRAPH HEADQUARTERS MR CONSTANT LIKES TO TALK WE WANT TO ORGANIZE A REAL POLITICAL PARTY IN THIS COUNTRY SAYS MR CONSTANT ASKED IF HE WOULD LIKE TO BE PRESIDENT SOME DAY MR CONSTANT REPLIES IN LATIN THE VOICE OF THE PEOPLE IS THE VOICE OF GOD BUT WESTERN DIPLOMATS AND ARISTIDE SUPPORTERS DON'T SEE DIVINE HANDIWORK IN FRAPH IT STARTED AS A PARAMILITARY GROUP TO CARRY OUT THE DIRTY WORK OF THE MILITARY BUT NOW THEY SEEM TO HAVE POLITICAL PRETENSIONS SAYS ONE DIPLOMAT IT MEANS THE NEXT TIME THERE IS AN ELECTION THE RESULTS WILL BE A FOREGONE CONCLUSION FRAPH BEGAN TO STIR IN SEPTEMBER BUT IT MADE ITS SPECTACULAR INTERNATIONAL DEBUT ON OCT 11 JUST THREE WEEKS BEFORE THE SCHEDULED RETURN OF MR ARISTIDE WHOSE CALLS FOR SOCIAL JUSTICE TERRORIZED DUVALIERISTS WHO FEARED HIS RETURN WOULD INCITE LYNCH MOBS AND THREATEN THEIR GOVERNMENT JOBS THAT MORNING GUNTOTING FRAPH PARTISANS PROTECTED BY HAITIAN POLICE WERE ABLE TO TURN BACK A US NAVY VESSEL WHICH WAS CARRYING 200 US AND CANADIAN MILITARY INSTRUCTORS WITH THE USS HARLAN COUNTY WENT ANY IMMEDIATE HOPE OF PRESIDENT ARISTIDE'S RETURN SINCE THEN FRAPH HAS ADVOCATED ESTABLISHING AN EXTRACONSTITUTIONAL GOVERNMENT AND HOLDING ELECTIONS TO REPLACE HIM THE US WHICH SUPPORTS A FUEL AND ARMS EMBARGO AGAINST HAITI RECENTLY HAS BEEN CONSIDERING STEPPING UP PRESSURE ON THE MILITARY TO CEDE POWER DIPLOMATS SAY THAT MR CONSTANT IS FRAPH'S GOOD COP WHO PLAYS AGAINST THE BADCOP ROUTINE OF JODEL JOJO CHAMBLAIN A STOCKY MAN WITH A KNOT OF WHITE HAIR MR CHAMBLAIN FAVORS SHARPLY CUT SUITS AND MOVES AROUND PORTAUPRINCE WITH HIS BODYGUARDS IN A BLUE JEEP WITH TINTED WINDOWS HE SAYS HE WAS A CORPORAL IN THE ARMY AND THEN A POLICE DETECTIVE BEFORE FORMING FRAPH HE IS SAID TO HAVE BEEN INVOLVED IN A COUP ATTEMPT BY TONTON MACOUTES LEADER ROGER LAFONTANT IN JANUARY 1991 IN THE AFTERMATH OF THE FAILED COUP SAYS AN ARISTIDE ORGANIZER MR CHAMBLAIN'S WIFE WAS KILLED WHEN A MOB LOOKING FOR MR CHAMBLAIN FOUND HIS WIFE AND BEAT HER INSTEAD ACCORDING TO A UN REPORT MR CHAMBLAIN MAY HAVE HAD A ROLE IN THE KILLING OF ANTOINE IZMERY A MAJOR BACKER OF PRESIDENT ARISTIDE MR IZMERY WAS DRAGGED FROM A MASS IN A PORTAUPRINCE CHURCH AND SLAIN ON THE STREET THE REPORT SAYS MR CHAMBLAIN WAS IN A WHITE RENAULT ONE OF THREE CARS USED TO COORDINATE THE KILLING ALSO IN THE CAR WAS AN ATTACHE NAMED GROS FANFAN WHO ALLEGEDLY SHOT MR IZMERY AFTER THE SHOOTING THE ALLEGED KILLER GOT INTO THE RENAULT WHICH DROVE OFF THE REPORT SAYS BUT MOST DIPLOMATS HERE SAY THE EMINENCE GRISE BEHIND FRAPH IS LT COL MICHEL FRANCOIS THE POWERFUL HEAD OF THE PORTAUPRINCE POLICE WHO IN THE MURKY WORLD OF HAITIAN MILITARY POLITICS IS SOMETIMES DEPICTED AS A RIVAL TO LT GEN RAOUL CEDRAS HAITI'S MILITARY LEADER I SPEAK WITH MICHEL FRANCOIS EVERY DAY SAYS MR CONSTANT A LOT OF PEOPLE FEAR HIM BECAUSE THEY DON'T KNOW HIM MR CONSTANT WHO GREATLY ADMIRES COL FRANCOIS SAYS THE FORT BENNINGTRAINED POLICE COLONEL WOULD LOOK LIKE A MARINE IF HE CHANGED UNIFORM A REAL DRILLSERGEANT TYPE COL FRANCOIS HAS PROHIBITED HAITI'S SOLDIERS FROM WEARING GOLD JEWELRY WHILE IN UNIFORM SAYS MR CONSTANT COL FRANCOIS SAYS MR CONSTANT ALSO PREVAILED ON MR CHAMBLAIN TO GET HIS MEN TO CARRY THEIR GUNS OUT OF SIGHT INSTEAD OF BRANDISHING THEM OPENLY BUT THE GUNS ARE THERE NONETHELESS AND MANY AMONG THE TWOSCORE HANGERS ON AT FRAPH HEADQUARTERS MAKE LITTLE ATTEMPT TO HIDE THEIR SUBMACHINE GUNS AND AUTOMATIC PISTOLS DESPITE THE COLONEL'S ORDER BESIDES FIREPOWER ANOTHER ESSENTIAL ELEMENT IN FRAPH IS VOODOO HAITI'S RELIGIOUS SYNTHESIS OF AFRICAN AND CATHOLIC ICONOGRAPHY AND CEREMONY LIKE PAPA DOC BEFORE HIM MR CONSTANT IS ATTEMPTING TO ENROLL HAITI'S GODS IN HIS CAUSE IN HIS SHADY GARDEN A FEW MILES FROM PORTAUPRINCE MAX BEAUVOIR A CELEBRATED VOODOO PRIEST AND DUVALIERIST WHO HEADS AN ORGANIZATION THAT HE SAYS INCLUDES 15000 OF HAITI'S 40000 VOODOO CLERICS SMOOTHS OUT A MANGO LEAF WITH HIS FINGERS FRAPH'S STRUCTURE IS BASICALLY MILITARY LIKE THE STEM AND VEINS OF THIS LEAF SAYS MR BEAUVOIR IN THE MIDDLE HE SAYS RUBBING THE SPACE BETWEEN THE LEAF'S VEINS IT NEEDS PEOPLE THAT'S WHERE VOODOOISTS COME IN HE SAYS IN RECENT DAYS MR CONSTANT HAS MADE IT A PRACTICE TO INVITE REPORTERS TO VOODOO CEREMONIES AT HIS HOUSE AT ONE SUCH SESSION MR CONSTANT DRESSED IN BOXER SHORTS AND A TSHIRT STANDS BAREFOOT IN A CIRCLE DRAWN WITH FLOUR AS A VOODOO PRIEST TRIES TO UNDO THE EFFECTS OF A BOTCHED POISONING MR CONSTANT SAYS HIS ENEMIES TRIED TO END HIS POLITICAL CAREER BY GIVING HIM A POISONED CIGARETTE AS A HALFDOZEN ONLOOKERS SING A HYMN IN A MIXTURE OF LATIN FRENCH AND CREOLE THE VOODOO PRIEST CALLS ON SAMSON DAVID SOLOMON AND JESUS TO COME TO MR CONSTANT'S AID HE THEN HOLDS MR CONSTANT'S HEAD ARMS AND LEGS OVER THE SWEETLY SCENTED SMOKE COMING FROM AN IRON BRAZIER YOU WHO WALK IN THE MISTS DON'T KNOW WHERE YOU ARE GOING THE PRIEST INTONES THEN HE CRIES OUT SATAN FEELING CLEANSED AFTER THE CEREMONY MR CONSTANT TALKS STRATEGY WITH HIS ADVISERS THEY INCLUDE A WELLDRESSED MAN WHO GOES BY THE NOM DE GUERRE OF PATTON PLUS FRANK PIERRE AN ENGINEER WHO SAYS THAT HAITI HAS A SECRET WEAPON AGAINST ANY US ATTEMPT TO INSTALL PRESIDENT ARISTIDE MAGIC PATTON AGREES I WOULD USE MAGIC AGAINST AMERICAN SOLDIERS AND IN MY BATTLEFIELD WE WOULD WIN HE SAYS ONE THING THAT MR CONSTANT IS ADAMANT ABOUT IS FRAPH'S NONVIOLENT WAYS NO ONE CAN SAY THAT FRAPH HAS KILLED ANYBODY HE SAYS TAKING A LONG DRAW ON HIS CIGARETTE NO CARD SAYING FRAPH' HAS EVER BEEN FOUND WITH ANY BODY THAT'S WHY FRAPH IS LEADING POLITICALLY IN THIS COUNTRY TIME WILL SHOW THE TRUTH BUT A FEW MILES AWAY IN A HOVEL IN CITE SOLEIL A FRIEND OF DADY PIERRE THE DEAD ARISTIDE SUPPORTER FEARS TIME IS RUNNING OUT FOR HIM TOO DIEUSEL FILS ALSO A BACKER OF MR ARISTIDE IS IN HIDING IN A FRIEND'S SHANTY TWO SMALL CHILDREN SLEEP ON THE FLOOR SHAKING WITH FEVER MR FILS BELIEVES THAT HIS SUPPORT OF PRESIDENT ARISTIDE MAY SOON BRING HIM THE SAME FATE AS HIS FRIEND THEY KILLED HIM FOR THE SAME REASONS THEY ARE COMING AFTER ME HE SAYS 9404060169 940406 TEXAS JOURNAL HEARD IN TEXAS WHOLE FOODS' NUMBERS INDICATE PROBLEMS FOR FIRM IN SHORT TERM BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN WHOLE FOODS THEY SAY DO A BODY GOOD BUT WHOLE FOODS COULD PUT A CRAMP IN YOUR PORTFOLIO WHOLE FOODS MARKET THAT IS THE AUSTIN PURVEYOR OF NATURAL AND ORGANIC GROCERIES THE COMPANY HAS BEEN A HIGHFLIER FOR THE PAST FEW YEARS IN LARGE PART BECAUSE OF ITS EARNINGS SUCCESSES AND THE PERCEPTION THAT IT REPRESENTS AN ECOLOGICALLY CORRECT AND HEALTHY LIFESTYLE MANY ANALYSTS ARE BULLISH ON THE COMPANY IN THE LONG TERM WHY WHOLE FOODS MARKET IS THE SOCALLED CATEGORY KILLER WHEN IT COMES TO RETAILING NATURAL AND ORGANIC FOODS WITH 32 STORES IN EIGHT STATES IT EASILY OUTDISTANCES ITS PEERS MUCH OF THE NATURALFOODS INDUSTRY IS MADE UP OF SMALL INDEPENDENT OPERATIONS ILLEQUIPPED TO COMPETE AGAINST WHOLE FOODS IN MARKETING STORE SIZE PRODUCT SELECTION OR PRICE BUT FOR THE SHORT TERM THE COMPANY DOESN'T LOOK SO HEALTHY AS THE NUMBERS APPEAR TO INDICATE THE COMPANY'S STOCK HAS TAKEN A FALL EARNINGS HAVE FAILED TO MEET EXPECTATIONS AND SALES MOMENTUM APPEARS TO HAVE FLAGGED RECENT INSIDER SELLING AND A MOUNTING SHORT POSITION DON'T BODE WELL EITHER WHOLE FOODS MANAGEMENT HAS A NUMBER OF POTENTIALLY DAUNTING TASKS AHEAD OF IT THIS FISCAL YEAR NOTES DAVID C CHILDE AN ANALYST AT JOHNSON RICE & CO IN NEW ORLEANS IN A FEBRUARY REPORT HE IS MILDLY NEGATIVE ON THE STOCK KEY AMONG THOSE PROBLEMS SEVERAL FACTORS ARE CONSTRAINING SALES AT STORES OPEN A YEAR OR LONGER SOME ANALYSTS EXPECT SALES IN THE LOS ANGELES AREA HOME TO ABOUT A QUARTER OF WHOLE FOODS' SYSTEMWIDE REVENUE WILL BE DOWN ABOUT 5 FOR THE FISCAL SECOND QUARTER ENDING APRIL 10 THANKS TO JANUARY'S EARTHQUAKE WHICH RENDERED THE COMPANY'S WEST COAST OFFICES UNINHABITABLE SALES ARE EXPECTED TO SUFFER IN BOSTON WHICH ACCOUNTS FOR ABOUT ONEFIFTH OF REVENUE BECAUSE OF THIS WINTER'S BRUTAL WEATHER THE HOUSTON AND AUSTIN MARKETS WHICH TOTAL ABOUT 10 OF REVENUE ARE EXPECTED TO BE FLAT WHILE SALES ARE SLUGGISH AT ONE OF THREE STORES IN HOUSTON COMPETITION HAS SPRUNG UP IN AUSTIN IN THE FORM OF CENTRAL MARKET A 70000SQUAREFOOT NATURAL PRODUCTS ORGANIC PRODUCE AND GOURMET FOOD STORE OPERATED BY HEB GROCERY CO SAN ANTONIO COMPANY EXECUTIVES NOTED AT AN INVESTORS CONFERENCE THAT THEY FELT WHOLE FOODS' MARKET SHARE WAS AT RISK IN AUSTIN PARTLY BECAUSE OF CENTRAL MARKETS SO WHOLE FOODS PLANS TO CONSOLIDATE ITS THREE SMALL AUSTIN OUTLETS WHICH AVERAGE ABOUT 20000 SQUARE FEET EACH INTO TWO LARGER STORES A MOVE CONTENDS A DALLAS HEDGE FUND MANAGER WHO IS NEGATIVE ON THE STOCK THAT WILL RESULT IN A ROUGHLY 1 MILLION CHARGE AGAINST EARNINGS NEXT YEAR MEANTIME COMPANY INSIDERS HAVE DUMPED SHARES IN LARGE NUMBERS DESPITE CLAIMS BY SEVERAL ANALYSTS THAT WHOLE FOODS HAS GREAT GROWTH PROSPECTS THROUGH 1995 BECAUSE OF ITS ACQUISITION LAST YEAR OF MRS GOOCH'S NATURAL FOODS SUPERMARKETS IN SOUTHERN CALIFORNIA IN NOVEMBER AND DECEMBER VARIOUS DIRECTORS AND CORPORATE OFFICERS SOLD NEARLY 420000 SHARES OF WHOLE FOODS' STOCK AN ADDITIONAL 308000 SHARES WERE REGISTERED FOR SALE WITH THE SECURITIES AND EXCHANGE COMMISSION LAST MONTH NEARLY TWOTHIRDS COMING FROM VENTEX PARTNERS LTD A HOUSTON VENTURE CAPITAL FIRM THAT HELPED FINANCE WHOLE FOODS' EARLY GROWTH CHIEF EXECUTIVE OFFICER JOHN MACKEY FOR EXAMPLE SOLD 60000 SHARES IN LATE DECEMBER WHILE HIS FATHER WILLIAM S MACKEY A DIRECTOR DISPOSED OF 50000 SHARES IN TRANSACTIONS A MONTH EARLIER WHOLE FOODS POINTS OUT THAT BECAUSE OF STIPULATIONS INVOLVING THE MRS GOOCH'S TRANSACTION NOVEMBER WAS THE INSIDERS' FIRST OPPORTUNITY TO SELL STOCK LAST YEAR THE COMPANY ALSO NOTES THAT ITS EXECUTIVE COMPENSATION IS RELATIVELY LOW FOR THE INDUSTRY AND MOST COMPANY OFFICERS' WEALTH IS TIED UP IN WHOLE FOODS STOCK AND OPTIONS STILL TO MR CHILDE THE INSIDER SALES INDICATE POSSIBLY THE EXECUTIVES THINK THIS STOCK MAY BE LOWER RATHER THAN HIGHER OVER THE NEXT YEAR OTHER INVESTORS APPARENTLY AGREE SHORT INTEREST IN THE STOCK NEARLY DOUBLED TO 85100 SHARES FROM NOVEMBER TO DECEMBER AND HAS SINCE NEARLY DOUBLE AGAIN TO 165 MILLION SHARES AS OF MARCH 15 SHORT SELLERS BET AGAINST A STOCK BY BORROWING SHARES AND IMMEDIATELY SELLING THEM WITH THE IDEA OF REPLACING THEM LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE AS RECENTLY AS JANUARY WHOLE FOODS' SHARES ADJUSTED FOR A 2FOR1 SPLIT PAID IN NOVEMBER TRADED FOR 2575 ITS RECORD HIGH AT CURRENT PRICES ABOUT 1975 THE STOCK IS OFF 23 YET WHOLE FOODS STILL TRADES AT ROUGHLY 30 TIMES 1994'S PROJECTED EARNINGS QUITE A STIFF MULTIPLE SAY SKEPTICS ESPECIALLY FOR A COMPANY THAT HASN'T BEEN MEETING ANALYSTS' EARNINGS EXPECTATIONS RECENTLY IN THREE OF THE PAST FOUR QUARTERS THE COMPANY'S EARNINGS HAVE COME IN AS MUCH AS 18 BELOW ANALYSTS' ORIGINAL PROJECTIONS FOR THE FISCAL FIRST QUARTER ENDED JAN 16 WHOLE FOODS REPORTED NET INCOME OF 18 CENTS A SHARE THE CONSENSUS ESTIMATE 22 CENTS A SHARE ACCORDING TO FIRST CALL WHICH MONITORS ANALYSTS' ESTIMATES ALSO OF CONCERN NOTES MR CHILDE WHEN DISCOUNTING LAST YEAR'S ACQUISITION OF MRS GOOCH'S WHOLE FOODS' EARNINGS HAVE GONE NOWHERE IN HIS REPORT MR CHILDE WRITES THAT COST SAVINGS ASSOCIATED WITH THE GOOCH'S DEAL ADDED ABOUT THREE CENTS A SHARE TO THE FIRST QUARTER SUBTRACT THAT AND THE COMPANY'S OPERATIONS ARE FLAT HE SAYS HE FIGURES THE CURRENT QUARTER WILL SHOW SIMILAR RESULTS THE ROUGH WEEK ON WALL STREET TOOK ITS TOLL ON AMERICAN MEDICAL HOLDINGS DESPITE BEATING ANALYSTS' EARNINGS ESTIMATES FOR THE FISCAL SECOND QUARTER THE DALLAS OPERATOR OF ACUTECARE HOSPITALS DROPPED MORE THAN 15 TO 1950 FOR THE QUARTER ENDED FEB 28 AMERICAN MEDICAL REPORTED NET INCOME OF 2428 MILLION OR 32 CENTS A SHARE ANALYSTS HAD EXPECTED 29 CENTS A SHARE A YEAR EARLIER THE COMPANY EARNED 1828 MILLION OR 24 CENTS A SHARE MICROGRAFX OF RICHARDSON STUMBLED 225 OR 26 TO CLOSE AT 650 THE COMPUTER SOFTWARE COMPANY SAID LAST WEEK IT EXPECTS TO POST A LOSS FOR THE FOURTH QUARTER AND YEAR ENDED MARCH 31 ANALYSTS HAD BEEN PREDICTING A PROFIT FOR THE QUARTER AMERICAN MEDICAL ELECTRONICS DALLAS LOST MORE THAN 18 TO CLOSE AT 13375 AFTER ANNOUNCING THAT FOUR OUTSIDE DIRECTORS REQUESTED THAT JOSEPH MOOIBROEK PRESIDENT AND CHIEF EXECUTIVE OFFICER RESIGN MR MOOIBROEK SAID HE WOULDN'T RESIGN CHAIRMAN ARTHUR W SCHWALM NOTED THAT THE BOARD ISN'T DISSATISFIED WITH THE COMPANY'S RECENT PERFORMANCE OR ACQUISITIONS AND THAT MR MOOIBROEK HASN'T BEEN ACCUSED OF ANY WRONGDOING MR SCHWALM TOLD DOW JONES NEWS SERVICE THAT THE BOARD IS CONCERNED ABOUT THE FUTURE DIRECTION OF THE COMPANY WHICH MAKES MEDICAL DEVICES USED IN HEALING BROKEN BONES 9404060167 940406 WHO'S NEWS COMSHARE INC COMSHARE INC ANN ARBOR MICH GORDON MASSON 39 YEARS OLD SENIOR DIRECTOR OF THE RETAIL DIVISION WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF THAT DIVISION AT THIS SOFTWARE DEVELOPER 9404060166 940406 TECHNOLOGY & HEALTH CANADIAN PHONE CONSORTIUM EARMARKS 609 BILLION TO UPGRADE TO MULTIMEDIA BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL THE STENTOR CONSORTIUM OF CANADA'S NINE MAJOR TELEPHONE COMPANIES SAID IT WILL SPEND 85 BILLION CANADIAN DOLLARS US609 BILLION OVER 10 YEARS TO UPGRADE THE NATION'S PHONE NETWORK TO HANDLE MULTIMEDIA SERVICES THE INVESTMENT IS DESIGNED TO ENABLE 80 TO 90 OF CANADA'S BUSINESSES AND HOMES TO RECEIVE VIDEO TRANSMISSION AND INTERACTIVE SERVICES OVER TELEPHONE LINES BY 2005 THE ANNOUNCEMENT FOLLOWS SIMILAR INITIATIVES BY US REGIONAL PHONE COMPANIES BUT STENTOR OFFICIALS SAID THE CANADIAN PROJECT REPRESENTS THE FIRST SUCH NETWORK STRETCHING FROM THE ATLANTIC COAST TO THE PACIFIC THE MOVE ALSO RAISES THE STAKES AS CANADIAN PHONE COMPANIES ANGLE FOR REGULATORY LEEWAY TO COMPETE WITH CABLE TELEVISION OPERATORS EXECUTIVES OF STENTOR'S MEMBER COMPANIES SAID THE ADDED INFRASTRUCTURE INVESTMENT REQUIRED BY THE PROGRAM WILL BE FINANCED BY REVENUE FROM NEW SERVICES SUCH AS HOME BANKING VIDEO CONFERENCES OR VIDEOONDEMAND AND FROM EXTERNAL FINANCING BELL CANADA THE COUNTRY'S BIGGEST PHONE COMPANY WILL INVEST C54 BILLION OF THE MONEY TO BE SPENT UPGRADING LOCAL NETWORKS UNDER THE STENTOR INITIATIVE ROUGHLY HALF OF BELL CANADA'S CONTRIBUTION WILL COME FROM ITS EXISTING MODERNIZATION PROGRAM A COMPANY OFFICIAL SAID BELL IS A UNIT OF BCE INC MONTREAL UPGRADING LOCAL NETWORKS WILL INVOLVE EXTENDING FIBER OPTIC CABLES TO NEIGHBORHOODS AND USING COAXIAL CABLE FOR THE LAST LINK TO HOMES COAXIAL CABLE CAN TRANSMIT MORE INFORMATION THAN THE TWISTED COPPER WIRING USED FOR EXISTING TELEPHONE LINES OFFICIALS FROM THE STENTOR COMPANIES SAID THE NETWORK WOULD BE OPEN TO USE BY ANY PROVIDERS OF TELECOMMUNICATIONS SERVICES INCLUDING CABLE COMPANIES BUT CABLEINDUSTRY OFFICIALS WERE WARY KEN STEIN PRESIDENT OF THE CANADIAN CABLE TELEVISION ASSOCIATION SAID THE PHONE COMPANIES HAVEN'T MADE CLEAR HOW THEY PLAN TO FUND THE PROJECT AND COULD BE GOING AFTER OUR TURF WITH THE TELEPHONE SUBSCRIBERS' MONEY IN ADDITION TO UPGRADING THE NETWORK BCE AND OTHER TELEPHONECOMPANY PARENT ORGANIZATIONS WILL FORM A NEW COMPANY IN TORONTO TO SUPPLY MULTIMEDIA SERVICES SUCH AS LONGDISTANCE MEDICAL CONSULTATION OR HOMESHOPPING AND SECURITY MONITORING STENTOR'S NINE OWNER COMPANIES ARE BELL CANADA WHICH OPERATES IN ONTARIO AND QUEBEC BC TEL A UNIT OF BC TELECOM INC OF BRITISH COLUMBIA AND PHONE COMPANIES IN THE COUNTRY'S SEVEN OTHER PROVINCES 9404060165 940406 BOMBAY FIVEWEEK SALES ROSE FORT WORTH TEXAS BOMBAY CO SAID ITS SALES FOR THE FIVE WEEKS ENDED SUNDAY ROSE 29 TO 246 MILLION FROM 191 MILLION A YEAR EARLIER THE SPECIALTY RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR ROSE 17 FOR THE 39WEEK PERIOD SALES CLIMBED 41 TO 2419 MILLION FROM 1717 MILLION SAMESTORE SALES ROSE 21 9404060164 940406 PANCHO'S MEXICAN BUFFET FORT WORTH TEXAS PANCHO'S MEXICAN BUFFET INC SAID SALES AT RESTAURANTS OPEN AT LEAST A YEAR ROSE 12 IN MARCH FROM A YEAR EARLIER THE MEXICANSTYLE RESTAURANT CHAIN SAID SAMEUNIT SALES IN THE FIRST HALF OF ITS FISCAL YEAR ENDING SEPT 30 WERE UP 15 9404060163 940406 AIRTOUCH JOINS INDEX GROUP NEW YORK AIRTOUCH COMMUNICATIONS INC IS BEING ADDED TO THE TELEPHONESYSTEMS INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY THE COMPANY WAS SPUN OFF FROM PACIFIC TELESIS GROUP AS PACTEL CORP AND CHANGED ITS NAME 9404060162 940406 BRE PROPERTIES BUYS PROPERTY SAN FRANCISCO BRE PROPERTIES INC A REAL ESTATE INVESTMENT TRUST SAID IT PURCHASED TWO APARTMENT COMPLEXES WITH A TOTAL OF 376 UNITS IN THE SAN DIEGO AREA FOR A COMBINED 22 MILLION 9404060161 940406 TEXAS JOURNAL ENJOY IT WHILE IT LASTS IPO FEVER HASN'T LEFT TEXAS BY JEFF D OPDYKE DESPITE A NATIONAL SLOWDOWN IN NEW STOCK AND BOND ISSUES THE IPO AND DEBTOFFERING MARKET IS STILL BOILING IN TEXAS BUT THE FEVER COULD BREAK SOON FOR THE FIRST QUARTER OF 1994 THERE WERE 12 INITIAL PUBLIC OFFERINGS FOR TEXASBASED COMPANIES TWO MORE THAN IN THE FIRST QUARTER OF LAST YEAR AND THE AMOUNT OF MONEY RAISED IN THE QUARTER ROSE 71 TO 908 MILLION ACCORDING TO DATA COMPILED BY CHAS P YOUNG CO A HOUSTON FINANCIALDOCUMENTS PRINTER TEXAS COMPANIES THAT JOINED WALL STREET LAST QUARTER RANGED FROM HOUSTON'S WESTERN NATIONAL CORP PARENT OF WESTERN NATIONAL LIFE INSURANCE WHICH RAISED 330 MILLION IN THE LARGEST OFFERING OF THE QUARTER TO GOOD IDEAS ENTERPRISES INC A FORT WORTH MANUFACTURER OF CHILDRENS' BUILDING SETS WHICH RAISED 6 MILLION WHAT'S DRIVING THE CONTINUED SURGE IN TEXAS IPOS SIMPLE A STRONG ECONOMY TEXAS IS STILL GOING THROUGH ECONOMIC RESURGENCE SAYS SCOTT FORDHAM PRESIDENT OF CHAS P YOUNG THE SEEDS PLANTED MANY YEARS AGO IN THE FORM OF NEW INDUSTRIES LIKE BIOTECH ARE STILL SPROUTING THE THIRST FOR CAPITAL IS STILL THERE IN ADDITION TO IPOS TEXAS COMPANIES OFFERED 478 MILLION WORTH OF PREFERRED STOCK MORE THAN DOUBLING LAST YEAR'S 230 MILLION EFFORT TEXAS CORPORATIONS ALSO PICKED UP 514 BILLION IN DEBT DURING THE FIRST QUARTER UP 19 HOWEVER THE APPEAL OF SECONDARYSTOCK ISSUES APPEARS TO HAVE WANED THE VALUE OF THOSE OFFERINGS SLUMPED 18 TO 647 MILLION ALL TOLD TEXAS COMPANIES RAISED MORE THAN 717 BILLION IN 66 TRANSACTIONS UP 22 FROM 587 BILLION LAST YEAR THAT COMPARES WITH A 3 DECLINE ON THE NATIONAL LEVEL ACCORDING TO SECURITIES DATA CO A NEWARK NJ FINANCIALINFORMATION FIRM THAT'S THE FIRST SLOWDOWN IN UNDERWRITING SINCE 1990 BUT DON'T START BRAGGING ANALYSTS SAY THAT THE NATIONAL SLOWDOWN COMBINED WITH THE RECENT WEAKNESS IN THE STOCK MARKET FORESHADOWS POSSIBLE SLUGGISHNESS IN TEXAS IN THE SECOND QUARTER 9404060160 940406 TECHNOLOGY & HEALTH STUDY FINDS PILL POSES LITTLE RISK OF BREAST CANCER BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY FOUND HINTS OF A SLIGHTLY HIGHER RISK OF BREAST CANCER AMONG BABYBOOM WOMEN WHO BEGAN USING BIRTH CONTROL PILLS TWO DECADES AGO WHEN THEY WERE TEENAGERS BUT EVEN FOR THESE WOMEN THE RISK WAS VERY SMALL SAID EMILY WHITE AN EPIDEMIOLOGIST AT THE UNIVERSITY OF WASHINGTON AND THE FRED HUTCHINSON CANCER RESEARCH CENTER BOTH IN SEATTLE OVERALL THE REPORT BASED ON A COMPARISON OF 747 WOMEN WITH BREAST CANCER AND 961 WITHOUT IT CONFIRMS NUMEROUS PREVIOUS STUDIES SHOWING THAT THE PILL ISN'T ASSOCIATED WITH BREAST CANCER THE STUDY IS MORE REASSURING THAN ALARMING SAID DR WHITE BECAUSE IT WAS A VERY LARGE STUDY WE WERE ABLE TO FIND SOME DIFFERENCES BETWEEN THOSE WHO HAD BREAST CANCER AND THOSE WHO DIDN'T BUT THERE ISN'T ANY REASON FOR THE PUBLIC TO BE CONCERNED ABOUT USING ORAL CONTRACEPTIVES SHE IS THE LEAD AUTHOR OF THE REPORT WHICH APPEARS IN THIS WEEK'S JOURNAL OF THE NATIONAL CANCER INSTITUTE RESEARCHERS ARE PARTICULARLY INTERESTED IN THE IMPACT OF THE PILL ON BABYBOOM WOMEN THOSE BORN AFTER 1945 BECAUSE THEY ARE THE FIRST GENERATION TO HAVE HAD ACCESS TO ORAL CONTRACEPTIVES THROUGHOUT THEIR REPRODUCTIVE LIVES EARLY VERSIONS OF THE PILL WHICH FIRST CAME ON THE MARKET IN THE EARLY 1960S CONTAINED HIGH LEVELS OF ESTROGEN AND PROGESTERONE RAISING CONCERNS ABOUT CANCER RISK BUT MANUFACTURERS HAVE SHARPLY REDUCED THE AMOUNTS OF THOSE HORMONES WHICH REGULATE A WOMAN'S MENSTRUAL CYCLE IN MORE RECENT VERSIONS DR WHITE SAID USE OF THE EARLIER FORMULATIONS OF THE PILL COULD EXPLAIN SOME OF THE INCREASED RISK AMONG EARLY OR LONGTERM USERS THE REPORT ALSO NOTED OTHER RESEARCH INDICATING THAT BREAST CELLS COULD BE PARTICULARLY VULNERABLE TO GENETIC DAMAGE BETWEEN PUBERTY AND THE FIRST PREGNANCY WHEN BREASTS UNDERGO RAPID GROWTH THE REPORT FOUND THAT WOMEN UNDER AGE 45 WHO USED THE PILL LONGER THAN 10 YEARS OR WHO BEGAN USING IT WITHIN FIVE YEARS AFTER THEIR FIRST MENSTRUAL PERIOD WERE ABOUT 30 MORE LIKELY TO HAVE BREAST CANCER THAN WOMEN WHO USED THE PILL FOR LESS THAN ONE YEAR OR WHO BEGAN USING IT LATER IN LIFE FOR A WOMAN WITH A 1 CHANCE OF GETTING BREAST CANCER UP TO AGE 45 THE RESULTS INDICATE LONGTERM OR EARLY USE MIGHT RAISE THE RISK TO 13 DR WHITE SAID A MORE DEFINITIVE ASSESSMENT OF THE PILL AND BREAST CANCER RISK PROBABLY WON'T BE AVAILABLE UNTIL BABYBOOM WOMEN REACH THEIR EARLY TO MID50S WHEN THE BREAST CANCER RISK FOR ALL WOMEN INCREASES SIGNIFICANTLY DR WHITE SAID 9404060159 940406 TECHNOLOGY & HEALTH WARNERLAMBERT'S COGNEX STUDY FINDS DRUG HELPS 40 OF ALZHEIMER PATIENTS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL HIGH DOSES OF WARNERLAMBERT CO'S CONTROVERSIAL DRUG COGNEX IMPROVE THE MEMORY AND ATTENTION OF ABOUT 40 OF ALZHEIMER'S DISEASE PATIENTS ACCORDING TO A NEWLY PUBLISHED STUDY THAT LED TO THE DRUG'S RECENT APPROVAL THE STUDY FOUND THAT PATIENTS ON HIGH DOSES OF COGNEX MADE SIGNIFICANTLY GREATER GAINS IN MEMORY AND MENTAL STATUS THAN THOSE ON LOWER DOSES BUT IT ALSO FOUND MORE EVIDENCE OF THE SHORTCOMINGS AND SIDE EFFECTS OF COGNEX CURRENTLY THE ONLY APPROVED TREATMENT FOR THE DEGENERATIVE BRAIN DISORDER WARNERLAMBERT SUBMITTED THE STUDY TO THE FOOD AND DRUG ADMINISTRATION LAST YEAR IN ITS SUCCESSFUL APPLICATION TO MARKET COGNEX ALSO KNOWN AS TACRINE THE MORRIS PLAINS NJ DRUG COMPANY IS PUBLISHING THE STUDY FOR THE FIRST TIME IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION THE STUDY REVEALS THE BENEFITS LIMITATIONS AND TOXIC EFFECTS OF TACRINE FOR PATIENTS WITH ALZHEIMER'S DISEASE DECLARED AN ACCOMPANYING EDITORIAL BY JAMA SENIOR EDITOR MARGARET WINKER GIVEN THE DEVASTATING CONSEQUENCES OF ALZHEIMER'S DISEASE FOR BOTH THE PATIENT AND THE FAMILY A ONEINTHREE CHANCE OF IMPROVEMENT MAY BE WORTH THE RISK THE STUDY FOUND THAT 40 OF PATIENTS RECEIVING 160 MILLIGRAMS OF COGNEX DAILY SHOWED STRONG IMPROVEMENTS ON A TEST OF MEMORY AND ATTENTION THE IMPROVEMENTS WERE ALMOST TWICE AS LARGE AS THOSE FOUND IN EARLIER STUDIES OF PATIENTS ON LOWER DOSES IN ADDITION 42 OF PATIENTS ON THE 160MILLIGRAM DOSE IMPROVED BY THREE OR MORE POINTS ON AN IMPORTANT 30POINT COGNITIVEFUNCTIONING SCALE THAT IS BY FAR THE LARGEST TREATMENT DIFFERENCE SEEN ON THIS SCALE FOR ANY ANTIDEMENTIA DRUG SAID MARGARET KNAPP THE WARNERLAMBERT SCIENTIST WHO LED THE STUDY HOWEVER 70 OF THE PATIENTS TRYING THE 160MILLIGRAM DOSE HAD TO DROP OUT OF THE STUDY THE CHIEF REASONS CONCERN ABOUT LIVER DISEASE AND INTOLERABLE STOMACH SIDEEFFECTS A SECOND STUDY IN JAMA REVIEWING RESEARCH ON COGNEX'S SIDEEFFECTS ON THE LIVER FOUND THAT 49 OF COGNEX PATIENTS DEVELOPED ABNORMALLY HIGH LEVELS OF AN ENZYME THAT SERVES AS A REDFLAG FOR LIVER DAMAGE BUT THE STUDY FOUND THAT THE ENZYME LEVELS FELL AGAIN WHEN COGNEX WAS DISCONTINUED AND REPORTED NO DEATHS RELATED TO LIVER DAMAGE THE STUDY LED BY A UNIVERSITY OF MICHIGAN SCIENTIST WORKING WITH WARNERLAMBERT CONCLUDED THAT COGNEX'S RISK TO THE LIVER CAN BE REDUCED TO ACCEPTABLY LOW LEVELS WITH PROPER MONITORING THE STUDIES ARE THE LATEST CHAPTERS IN ONE OF THE MOST TORTUOUS SAGAS IN DRUGINDUSTRY HISTORY COGNEX FIRST GAINED ATTENTION IN 1986 WHEN AN OBSCURE CALIFORNIA PSYCHIATRIST REPORTED STARTLING BENEFITS FROM THE DRUG BUT HIS RESEARCH WAS LATER ASSAILED AND THE FDA TWICE REJECTED WARNERLAMBERT'S APPLICATIONS TO SELL THE DRUG COGNEX'S GYRATING FORTUNES HAVE HAD A SIGNIFICANT EFFECT ON WARNERLAMBERT STOCK WHICH CLOSED YESTERDAY AT 6150 A SHARE UP 875 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE SOME ANALYSTS HAVE PREDICTED COGNEX COULD RING UP ANNUAL SALES OF 500 MILLION AS THE ONLY APPROVED DRUG FOR THE FOUR MILLION AMERICANS WITH ALZHEIMER'S BUT SOME BIG HEALTHMAINTENANCE ORGANIZATIONS HAVE BALKED AT ACCEPTING THE DRUG WARNERLAMBERT SAID THIS WEEK THAT SINCE COGNEX'S LAUNCH LAST OCTOBER ABOUT 50000 PATIENTS HAVE TAKEN THE DRUG WARNERLAMBERT CHARGES WHOLESALERS AND PHARMACISTS ABOUT 1100 FOR A YEAR'S SUPPLY OF COGNEX MEANWHILE A SEPARATE PAPER ALSO IN THE CURRENT JAMA OFFERED INTRIGUING NEW EVIDENCE THAT PEOPLE WITH BETTER EDUCATION AND JOBS MAY HAVE A LOWER RISK OF ALZHEIMER'S THE COLUMBIA UNIVERSITY REPORT HYPOTHESIZED THAT SUCH PEOPLE MAY HAVE A RESERVE OF SKILLS OR BRAIN FUNCTION THAT DELAYS THE ONSET OF ALZHEIMER'S 9404060158 940406 INDUSTRY FOCUS LARGESCALE SHAKEOUT LOOMS FOR BIOTECHNOLOGY FIRMS AS NUMBER OF COMPANIES MUSHROOMS COMPETITION FOR CAPITAL STIFFENS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL BIOTECHNOLOGY EXECUTIVES CAUGHT IN ONE OF THE WORST FINANCING DROUGHTS EVER TO HIT THEIR INDUSTRY ARE BRACING FOR A SHOCK WAVE OF SHAKEOUTS AND CONSOLIDATION THIS TIME IT JUST MIGHT HAPPEN IT'S REMARKABLE THAT ONLY A HANDFUL OF COMPANIES HAVE FLAMED OUT IN THE TWO DECADES SINCE THE BIRTH OF THE INDUSTRY WHICH USES THE LIFE SCIENCES AND GENETIC ENGINEERING TO CREATE NEW MEDICINES FOOD CROPS AND OTHER PRODUCTS WHILE SOME BIOTECH SUPERSTARS HAVE SCORED HUGE AND IMPORTANT SUCCESSES THE BULK OF THESE RISKY VENTURES HAVE SOMEHOW MANAGED TO SURVIVE FOR YEARS WITHOUT YET BRINGING A SINGLE PRODUCT TO MARKET THE MONEY CHASE HAS TURNED FRANTIC NOW HOWEVER BECAUSE OF THE SOURING STOCK MARKET AND THE SHEER NUMBER OF COMPANIES THAT HAVE BURST ONTO THE SCENE SINCE THE BIOTECH UNIVERSE EXPANDED VASTLY IN 1991 AND 1992 THAT WAS WHEN INVESTORS LOOKING FOR THE NEXT AMGEN INC WHICH LAUNCHED ITS SECOND BLOCKBUSTER DRUG IN 1991 POURED BILLIONS OF DOLLARS INTO STARTUPS AND INITIAL PUBLIC OFFERINGS TODAY THERE ARE NEARLY 1300 BIOTECH COMPANIES OF WHICH ROUGHLY 250 ARE PUBLIC ACCORDING TO THE ACCOUNTING FIRM ERNST & YOUNG THERE ARE JUST TOO MANY COMPANIES COMPETING FOR CAPITAL SAYS DAVID E ROBINSON PRESIDENT AND CHIEF EXECUTIVE OF LIGAND PHARAMACEUTICALS INC A SAN DIEGO BIOTECH FIRM HE PREDICTS A RELATIVELY SMOOTH CONTRACTION MANAGED BY VENTURE CAPITALISTS AND INVESTMENT BANKERS BUT OTHERS BELIEVE IT COULD GET UGLY STUART WEISBROD A PARTNER AT THE NEW YORK HEDGE FIRM HARPEL ADVISORS THINKS A WHOPPING BEAR MARKET COULD SHRINK THE RANKS OF PUBLIC BIOTECH COMPANIES TO 50 IN TWO YEARS BUT HE SAYS THAT WOULD HELP THE INDUSTRY BY FREEING FUNDS FOR THE BEST COMPANIES THE CURRENT MONEYSUPPLY CRISIS ALSO REFLECTS INVESTOR FEARS THAT HEALTHCARE REFORM AND MANAGED CARE MIGHT HURT DRUG PRICES THE INDUSTRY FACES A CLEAR AND PRESENT DANGER IN PRICE CONTROLS THAT DISCOURAGE INVESTMENT IN INNOVATION SAYS CARL B FELDBAUM PRESIDENT OF THE WASHINGTONBASED BIOTECHNOLOGY INDUSTRY ORGANIZATION A TRADE GROUP HE ALSO CITES DISAPPOINTMENT OVER A STRING OF RECENT FLOPS BY FIRMS WHOSE PRODUCTS FLUNKED HUMAN TESTS AFTER LEAVING THE LAB THE CAPITAL SQUEEZE COULD BE CUSHIONED SOMEWHAT BY MORE BIOTECH INVESTMENT FROM GLOBAL PHARMACEUTICAL COMPANIES UNDER INTENSE PRESSURE TO CUT RESEARCH BUDGETS AND DEVELOP MORE BREAKTHROUGH DRUGS THEY ARE LOOKING FOR HELP THE BIOTECH INDUSTRY HAS PROVEN THAT IT CAN DO INNOVATIVE LEADINGEDGE DISCOVERY QUICKER AND FASTER THAN THE BIG COMPANIES CAN SAYS DAVID THOMPSON VICE PRESIDENT OF BUSINESS DEVELOPMENT AT DRUG MAKER ELI LILLY & CO INDIANAPOLIS LILLY HAS 15 TO 20 SUCH INVESTMENTS IN BIOTECH FIRMS AND SEEKS MORE HE SAYS BUT IT'S DOUBTFUL THE DRUG GIANTS CAN FILL THE GROWING CAPITAL CHASM TODAY BIOTECH COMPANIES COLLECTIVELY NEED AT LEAST 6 BILLION A YEAR A FIGURE THAT ESCALATES AS MORE COMPANIES START TESTING DRUGS ON HUMANS SAYS KENNETH LEE ERNST & YOUNG'S DIRECTOR OF LIFE SCIENCES INDUSTRY SERVICES FOR THE YEAR ENDED JUNE 30 1993 THE INDUSTRY RAISED ABOUT 52 BILLION AN AMOUNT THAT WILL FALL THIS YEAR AND PUSH THE FIRM'S BIOTECH SURVIVAL INDEX TO ALARMINGLY LOW LEVELS SAYS MR LEE HE ADDS WE'RE GOING TO SEE CONSOLIDATION ACTIVITY THAT IS UNPRECEDENTED OF THE 89 COMPANIES WHOSE CASH BURN RATES ARE ESTIMATED BY OPPENHEIMER & CO NEARLY HALF WILL RUN OUT OF MONEY IN LESS THAN TWO YEARS AT THEIR CURRENT CONSUMPTION RATES FOUR COMPANIES ON THE LIST ENZON INC PISCATAWAY NJ CELLCOR INC NEWTON MASS IMCLONE SYSTEMS NEW YORK AND CALGENE INC DAVIS CALIF HAVE LESS THAN A YEAR'S CASH COMPANIES IN A CASH CRUNCH AREN'T THE ONLY CONSOLIDATION CANDIDATES REGULAR PHARMACEUTICAL COMPANIES ARE ATTRACTED TO THOSE BIOTECH COMPANIES POSSESSING TECHNOLOGIES THAT CAN FACILITATE NEWDRUG DISCOVERIES LILLY FOR INSTANCE RECENTLY TOYED WITH THE IDEA OF BUYING AMGEN BEFORE DISMISSING A BID FOR THE THOUSAND OAKS CALIF COMPANY AS TOO COSTLY A KNOWLEDGEABLE SOURCE SAYS LILLY LATER AGREED TO PAY 72 MILLION TO ACQUIRE SPHINX PHARMACEUTICALS CO A DURHAM NC CONCERN THAT SCREENS COMPOUNDS FOR THEIR POTENTIAL AS PHARMACEUTICALS THE 6ASHARE ACQUISITION PRICE CONTRASTED WITH THE 15 A SHARE INVESTORS PAID WHEN SPHINX WENT PUBLIC IN 1992 VENTURES WITH EXPERTISE IN OTHER TECHNOLOGIES SUCH AS STRUCTUREBASED DRUG DESIGN COULD BE ALLURING ANALYSTS SAY FOR EXAMPLE SAN DIEGOBASED AGOURON PHARMACEUTICALS INC AND VERTEX PHARMACEUTICALS INC CAMBRIDGE MASS HAVE AN ELOQUENT WAY OF SCREENING COMPOUNDS TO COME UP WITH POTENT INHIBITORS FOR DIFFERENT ENZYMES THOSE CAPABILITIES HAVEN'T BEEN DEVELOPED IN THE PHARMACEUTICAL INDUSTRY SAYS LARRY BLOOM A DILLON READ & CO ANALYST HISTORICALLY OUTRIGHT BIOTECH ACQUISITIONS BY BIG PHARMACEUTICAL HOUSES HAVEN'T WORKED OUT BECAUSE THE BEST BIOTECH SCIENTISTS TEND TO LEAVE BUT ROCHE HOLDING AG'S PURCHASE OF A 60 STAKE IN GENENTECH IN 1990 ESTABLISHED A MORE PALATABLE MODEL FOR PRESERVING THE SMALLER VENTURE'S ENTREPRENEURIAL CULTURE THERE NEEDS TO BE A CERTAIN WILLINGNESS BY THE SCIENTIFIC STAFF SAYS COWEN & CO ANALYST DAVID STONE TO SEE LIFE AS A SUBSIDIARY OF A LARGE COMPANY AS MORE ATTRACTIVE THAN FIGHTING TO REMAIN INDEPENDENT DISAPPOINTMENTS IN THE LAB WHICH CAN SQUEEZE FUND RAISING MAY CREATE MORE RECEPTIVITY GLYCOMED INC AN ALAMEDA CALIF DEVELOPER OF DRUGS BASED ON THE BIOLOGIC PROPERTIES OF COMPLEX CARBOHYDRATES COULD BE IN THAT KIND OF CIRCUMSTANCE BECAUSE ITS MILESTONES HAVEN'T COME TOGETHER IN EXACTLY THE TIME FRAME THAT INVESTORS HOPED MR STONE SAYS STOCKS THAT TUMBLED ON BAD NEWS INCLUDE THOSE OF REGENERON PHARMACEUTICALS INC TARRYTOWN NY AND MAGAININ PHARMACEUTICALS INC PLYMOUTH MEETING PA BUT THERE COULD BE A SILVER LINING IF MERGERS ELIMINATE COSTLY DUPLICATION OF SCIENTIFIC EFFORT JOEL MARTIN AN ASSOCIATE AT SAN DIEGOBASED AVALON VENTURES SAYS THE FIRM IS ON THE VERGE OF COMPLETING A MERGER OF TWO STARTUPS BOTH IN THE EMERGING FIELD OF APOPTOSIS OR PROGRAMMED CELL DEATH BY TRIGGERING THIS NATURAL PHENOMENON SCIENTISTS HOPE TO INDUCE ROGUE CELLS TO KILL THEMSELVES WHILE SETTING UP IDUN PHARMACEUTICALS INC AVALON DISCOVERED THAT A KEY GENE WAS LICENSED TO A COMPETING SAN DIEGO RESEARCHER WE SAT DOWN WITH THE VENTURE CAPITALISTS BACKING THE RESEARCHER AND GOT THE TWO GROUPS OF FOUNDING SCIENTISTS TOGETHER MR MARTIN SAYS THIS APPROACH MIGHT HAVE PREVENTED THE OVERCROWDING THAT EXISTS IN SOME NICHES AT LAST COUNT THERE WERE 37 ANTISENSE COMPANIES AND 44 GENETHERAPY COMPANIES ACCORDING TO FROST & SULLIVAN MARKET INTELLIGENCE A MOUNTAIN VIEW CALIF MARKET RESEARCH CONCERN IN THE NEUROSCIENCE FIELD THERE ARE SO MANY COMPANIES DEVELOPING TREATMENTS FOR LOU GEHRIG'S DISEASE MR MARTIN SAYS THAT THEY ARE RUNNING OUT OF PATIENTS FOR CLINICAL TRIALS 9404060157 940406 SEITEL DOUBLES BANK CREDIT LINE HOUSTON SEITEL INC SAID IT DOUBLED ITS AVAILABLE BANK CREDIT TO 20 MILLION AND OBTAINED LOWERCOST INTEREST THE SEISMICDATA COMPANY SAID THE INCREASED CREDIT FACILITY WAS PROVIDED JOINTLY BY COMPASS BANK OF BIRMINGHAM ALA AND BANK ONE TEXAS OF HOUSTON SEITEL SAID ITS INTEREST RATE WAS REDUCED TO PRIME FROM PRIME PLUS 3/8 SEITEL WILL USE THE CREDIT FOR ITS SEISMIC OPERATIONS AND FURTHER EXPANSIONS IN THE ENERGY FIELD 9404060156 940406 TEXAS JOURNAL ECONOMIC FOCUS AUSTIN'S BOOM HAS FIRMS SEARCHING FOR WORKERS BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN THIS CITY'S LOW UNEMPLOYMENT RATE MAY BE GREAT NEWS FOR WORKERS BUT IT'S STARTING TO PUT A SQUEEZE ON ECONOMIC GROWTH FOR THE FIRST TIME IN YEARS LABOR SHORTAGES ARE STARTING TO AFFECT THE OPERATIONS OF A WIDE RANGE OF INDUSTRIES HERE FROM CONSTRUCTION TO HAIRCUTTING AND ALTHOUGH THE SITUATION IS FAR FROM DRASTIC SOME LOCAL EXPERTS SAY THE TREND IS ALREADY SLOWING ECONOMICDEVELOPMENT EFFORTS PUTTING UPWARD PRESSURE ON WAGES AND MAKING RECRUITING INCREASINGLY FRUSTRATING IT'S GETTING TO BE CHALLENGING TO FIND SKILLED PEOPLE SAYS SHARRI JONAS MANAGER OF OLSTEN STAFFING SERVICES INC'S AUSTIN BRANCH WHICH PLACES TECHNICAL AND CLERICAL WORKERS SO TIGHT IS THE MARKET FOR PEOPLE WHO MAKE PRINTED CIRCUIT BOARDS THAT OLSTEN GIVES FREE SOLDERING LESSONS TO PROSPECTIVE WORKERS WE'RE DOING A LOT OF TRAINING TO TRY TO POLISH WORKERS' SKILLS OR GIVE THEM A NEW SKILL MS JONAS SAYS AUSTIN ISN'T THE ONLY PLACE WITH LABOR SHORTAGES FOR INSTANCE JB HUNT TRANSPORT SERVICES INC OF LOWELL ARK HAS FOUND IT TOUGHER TO RECRUIT TRUCKERS IN DALLAS LATELY EVEN THOUGH TEXAS IS TRADITIONALLY AMONG ITS BEST SOURCES OF NEW DRIVERS RATHER THAN JUST ADVERTISING JOB OPENINGS IN NEWSPAPERS THE COMPANY HAS STARTED BUYING SPOTS ON RADIO AND TELEVISION SAYS ELAINE CHAUDOIN VICE PRESIDENT FOR DRIVER PERSONNEL THERE SEEM TO BE LESS PEOPLE LOOKING FOR JOBS IN THAT MARKET SHE ADDS BUT THE BIGGEST POTENTIAL PROBLEMS ARE LOOMING IN AUSTIN WHICH HAD THE SECONDFASTEST JOB GROWTH IN THE STATE LAST YEAR ITS 63 GROWTH TRAILED ONLY MCALLEN'S 67 RATE ACCORDING TO THE LATEST FIGURES FROM THE TEXAS EMPLOYMENT COMMISSION UNEMPLOYMENT IN THE AUSTIN AREA FELL FROM 5 IN FEBRUARY 1993 TO 42 THIS PAST FEBRUARY JUST ABOUT THE RATE AT WHICH IT TRADITIONALLY STARTS TO PUSH WAGES HIGHER JOHN KRUSE A LABORMARKET ANALYST WITH THE TEXAS EMPLOYMENT COMMISSION SAYS HE RECENTLY HAS HAD A GREAT INCREASE IN CALLS FROM AUSTIN EMPLOYERS LOOKING FOR SPECIFIC WAGE DATA FOR THEIR INDUSTRIES THEY'RE WONDERING WHAT'S WRONG WITH THEIR PAY SCALES BECAUSE THEY'RE HAVING A HARD TIME HOLDING PEOPLE HE SAYS CONSTRUCTION COMPANIES WHICH ARE HAVING A TOUGH TIME FINDING WORKERS THROUGHOUT TEXAS SAY AUSTIN IS PROBABLY THE WORST PLACE IN THE STATE DOYLE WILSON HOMEBUILDER INC AN AUSTIN DEVELOPER IS FINDING IT TAKES NEARLY 120 DAYS TO COMPLETE A HOUSE NOW OR ROUGHLY TWICE AS LONG AS IT DID 18 MONTHS AGO BECAUSE OF A SHORTAGE OF SKILLED TRADE WORKERS IT TAKES LONGER TO GET THE JOB DONE AND MORE SUPERVISERS SAYS RON ROSS PRODUCTION MANAGER IT ALSO TAKES MORE MONEY FRAMING CARPENTERS EARN AS MUCH AS 3 PER SQUARE FOOT NOW OR MORE THAN DOUBLE THE RATE OF TWO YEARS AGO SAYS MR ROSS ADDING TO ALREADYSPIRALING COSTS OF NEW HOMES AND ERODING DEVELOPERS' PROFITS ALAN SAGER A FRANCHISEE FOR 14 SUPERCUTS INC HAIRSTYLING SALONS IN CENTRAL TEXAS FACES SIMILAR PROBLEMS HE'S SHORT ABOUT 12 HAIRSTYLISTS IN HIS AUSTINAREA SHOPS OR ABOUT 10 OF HIS ENTIRE WORK FORCE THIS IS THE WORST IT'S EVER BEEN HE SAYS ON THE POSITIVE SIDE MANY HIGHTECH COMPANIES SAY THEY'VE HAD LOTS OF SUCCESS RECRUITING ENGINEERS AND OTHER WORKERS FROM CALIFORNIA AND THE EAST COAST USING THE QUALITY OF LIFE AND RELATIVELY LOW COSTS TO LURE OUTOFSTATERS EVEN SO DELL COMPUTER CORP NEEDED MORE TIME TO STAFF ITS CUSTOMERSERVICE AND TECHNICALSUPPORT OPERATIONS LAST YEAR BECAUSE APPLE COMPUTER INC AND LOTUS DEVELOPMENT CORP WERE ALSO HIRING HUNDREDS OF SUPPORT STAFF IT TOOK DELL ABOUT FIVE WEEKS TO FIND EACH NEW EMPLOYEE UP FROM ABOUT THREE WEEKS IN PREVIOUS YEARS SAYS SAM GASSETT DIRECTOR OF STAFFING SUCH FACTORS ALSO MAY HAVE HELPED ELIMINATE AUSTIN FROM THE RUNNING FOR A 1 BILLION SEMICONDUCTOR PLANT LAST SUMMER ANGELOS ANGELOU HEAD OF THE GREATER AUSTIN CHAMBER OF COMMERCE'S ECONOMICDEVELOPMENT WING SAYS THE UNIDENTIFIED MANUFACTURER RULED OUT AUSTIN WHEN IT LEARNED IT COULDN'T OBTAIN TAX ABATEMENTS FOR A NEW FACILITY BUT HAD THE NEGOTIATIONS CONTINUED THE DEAL MIGHT WELL HAVE FOUNDERED OVER A LACK OF ENGINEERS AND CONSTRUCTION WORKERS TO BUILD THE FACILITY AND SKILLED EMPLOYEES TO STAFF IT SAYS MR ANGELOU NOTING THAT ADVANCED MICRO DEVICES INC AND MOTOROLA INC ALREADY HAVE SUCKED UP A HUGE PORTION OF AVAILABLE RESOURCES WITH THEIR OWN BILLIONDOLLAR EXPANSIONS I'D THINK IT WOULD BE DIFFICULT FOR ANOTHER SEMICONDUCTOR MAKER TO COME INTO AUSTIN THE SIZE OF AMD OR MOTOROLA AND BUILD A 3000 OR 4000PERSON WORKFORCE FROM SCRATCH AGREES DAN ROGERS A SPOKESMAN FOR SCHAUMBERG ILLBASED MOTOROLA THE COMPANY THE BIGGEST PRIVATE EMPLOYER IN AUSTIN HAS 8500 WORKERS WITH PLANS TO ADD 3500 MORE HERE IN THE NEXT SIX YEARS DUBIOUS DISTINCTION MORE BUSINESSES FAILED IN TEXAS LAST YEAR THAN IN ANY OTHER STATE EXCEPT CALIFORNIA ACCORDING TO PRELIMINARY FIGURES COMPILED BY DUN & BRADSTREET CORP NEW YORK DESPITE A 59 DECREASE IN FAILURES LAST YEAR TO 7096 TEXAS MOVED INTO SECOND PLACE PASSING NEW YORK WHERE FAILURES DECLINED 123 TO 6916 IN CALIFORNIA MEANWHILE 19695 BUSINESSES FAILED IN 1993 DOWN 05 9404060155 940406 INTERNATIONAL SAAB'S US SALES RISE STOCKHOLM SWEDEN'S SAAB AUTOMOBILE AB JOINTLY OWNED BY SWEDISH AUTOMOTIVE AND AEROSPACE GROUP SAABSCANIA AB AND GENERAL MOTORS CORP SAID SALES OF SAAB CARS IN ITS KEY US MARKET ROSE 11 TO 2335 UNITS IN MARCH FROM 2107 UNITS A YEAR EARLIER IN THE FIRST QUARTER SAAB'S US SALES WERE UP 10 TO 5351 CARS FROM 4865 CARS A YEAR EARLIER 9404060154 940406 WHO'S NEWS FINGERHUT COS FINGERHUT COS MINNEAPOLIS RONALD N ZEBECK 39 YEARS OLD FORMERLY MANAGING DIRECTOR OF CREDIT CARD OPERATIONS AT GENERAL MOTORS CORP WAS NAMED TO THE NEW POST OF PRESIDENT OF FINGERHUT FINANCIAL SERVICES CORP A UNIT OF THIS MULTIMEDIA MARKETER OF CONSUMER PRODUCTS 9404060153 940406 YIELDS ON CDS ROSE DURING LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS GENERALLY ROSE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS ROSE TO 304 FROM 3 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS EDGED UP TO 477 FROM 474 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS CLIMBED TO 371 FROM 346 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD JUMPED TO 533 FROM 501 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE CREPT TO 329 FROM 321 ON FIVEYEAR JUMBOS THE AVERAGE ROSE TO 524 FROM 514 ACCORDING TO BANXQUOTE 9404060152 940406 WHO'S NEWS TORO CO TORO CO BLOOMINGTON MINN JANET K COOPER VICE PRESIDENT AND TREASURER OF QUAKER OATS CO WAS ELECTED A DIRECTOR OF THIS MAKER OF LAWN AND TURFCARE PRODUCTS FILLING A VACANCY CREATED BY THE RETIREMENT OF N BUD GROSSMAN 9404060151 940406 CHINA FUND RIGHTS OFFERING NEW YORK CHINA FUND INC A CLOSEDEND MANAGEMENT INVESTMENT COMPANY SAID IT COMMENCED A RIGHTS OFFERING OF UP TO 28 MILLION SHARES CHINA FUND WILL ISSUE ONE TRANSFERABLE RIGHT FOR EACH SHARE HELD ON THE RECORD DATE OF APRIL 4 ONE SHARE MAY BE PURCHASED FROM THE FUND AT A SUBSCRIPTION PRICE OF 13 PER SHARE FOR EACH THREE RIGHTS DELIVERED BY APRIL 27 THE OFFERING COULD RAISE MORE THAN 36 MILLION 9404060150 940406 WHO'S NEWS LASMO PLC LASMO PLC LONDON THE OIL AND GAS EXPLORATION DEVELOPMENT AND PRODUCTION COMPANY SAID YESTERDAY THAT IT HAS NAMED RUDOLPH AGNEW CHAIRMAN AND A NONEXECUTIVE DIRECTOR MR AGNEW WILL SUCCEED LORD REES 67 YEARS OLD WHEN HE RETIRES AT THE ANNUAL GENERAL MEETING MAY 24 MR AGNEW IS CURRENTLY CHAIRMAN OF THE UNITED KINGDOM'S STENA LINE LTD AND NONEXECUTIVE DIRECTOR OF NEWMONT MINING CORP AND STANDARD CHARTERED PLC 9404060149 940406 WHO'S NEWS MOORE CORP MOORE CORP TORONTO STEPHEN A HOLINSKI WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS BUSINESS FORMS AND INFORMATION MANAGEMENT COMPANY MR HOLINSKI 47 YEARS OLD WAS FORMERLY VICE PRESIDENT AND TREASURER OF NORTHERN TELECOM LTD MR HOLINSKI SUCCEEDS JOSEPH B MCARTHUR 65 WHO IS RETIRING FROM HIS POSITIONS AS CHIEF FINANCIAL OFFICER AND VICE CHAIRMAN OF MOORE THE POSITION OF VICE CHAIRMAN WILL BE DISCONTINUED 9404060148 940406 WHO'S NEWS COOPER INDUSTRIES INC COOPER INDUSTRIES INC HOUSTON LARRY W MCCURDY WAS NAMED EXECUTIVE VICE PRESIDENT OPERATIONS INCREASING TO FOUR THE NUMBER OF OFFICERS WITH THAT TITLE MR MCCURDY 58 YEARS OLD WILL BE RESPONSIBLE FOR THE AUTOMOTIVE PRODUCTS SEGMENT OF THIS MANUFACTURING COMPANY HE WAS FORMERLY PRESIDENT OF THE COMPANY'S MOOG AUTOMOTIVE UNIT 9404060147 940406 MELLON BANK TO SELL UNIT PITTSBURGH MELLON BANK CORP SAID IT AGREED TO SELL MELLON/MCMAHAN REAL ESTATE ADVISORS INC TO MACFARLANE REALTY ADVISORS LP SACRAMENTO CALIF TERMS WEREN'T DISCLOSED A MELLON SPOKESMAN SAID THE BANK HOLDING COMPANY DECIDED THAT REAL ESTATE NO LONGER FITS ITS INSTITUTIONAL ASSETMANAGEMENT BUSINESS MELLON/MCMAHAN AN INVESTMENT MANAGEMENT FIRM MANAGES ASSETS TOTALING 18 BILLION 9404060146 940406 WHO'S NEWS BF GOODRICH CO BF GOODRICH CO AKRON OHIO WAYNE O SMITH 50 YEARS OLD FORMERLY CHIEF EXECUTIVE OFFICER OF THE INDUSTRIAL GASES BUSINESSES IN THE US CANADA AND LATIN AMERICA OF THE BOC GROUP LTD WAS NAMED AN EXECUTIVE VICE PRESIDENT OF THIS MAKER OF SPECIALTY CHEMICALS HE WAS ALSO NAMED TO THE NEW POST OF PRESIDENT OF THE BF GOODRICH SPECIALTY CHEMICALS UNIT 9404060145 940406 HEARD ON THE STREET LEHMAN BROTHERS STOCK OFFERING IS TEMPTING TO SOME WALL STREETERS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL LEHMAN BROTHERS IS SET TO FLY SOLO IN THE STOCK MARKET FOR THE FIRST TIME IN ITS 144YEAR HISTORY JUST AS BROKERAGE FIRM SHARES SWOONED AND THE STOCK MARKET APPEARED TO BE HITTING THE SKIDS AT FIRST BLUSH THE STOCK'S PROSPECTS LOOK BLEAK LEHMAN'S PROFITS HAVE BEEN POOR ITS COSTS SWOLLEN THE FIRM ISN'T WHAT IT USED TO BE MANY VETERANS HAVE LEFT AND LEHMAN STOCK COULD TAKE A SPEEDY DIVE AFTER IT'S FORMALLY SPUN OFF TO THE PUBLIC IN LATE MAY OR JUNE BY AMERICAN EXPRESS CO WHICH YESTERDAY FILED LONGAWAITED PLANS TO SEPARATE ITSELF FROM LEHMAN YET STARING AT THE RISKS SOME MONEY MANAGERS SAY THEY WILL WAIT FOR THE EXPECTED QUICK STOCK DROP THEN SNATCH UP LEHMAN SHARES FOR THE LONG HAUL LEHMAN IS JUST STARTING TO FLEX ITS MUSCLES AND HAS BUILT UP AN ENORMOUS AND POWERFUL EARNINGS BASE SAYS MARIO GABELLI CHIEF INVESTMENT OFFICER OF GABELLI ASSET MANAGEMENT WHICH OWNS 56 MILLION AMERICAN EXPRESS SHARES AND PLANS TO BUY NEW LEHMAN STOCK MANY BROKERAGE FIRM STOCKS TRADE WELL ABOVE THEIR BOOK VALUE OR ASSETS MINUS LIABILITIES BUT ANALYSTS EXPECT LEHMAN TO START TRADING CLOSE TO ITS 2450ASHARE BOOK VALUE THEN SINK ON HEAVY SELLING BY AMERICAN EXPRESS HOLDERS SUCH SELLOFFS ARE COMMON WHEN A BIG COMPANY SPINS OFF A BUSINESS THE EXPECTED DROP WILL ONLY MAKE THE LEHMAN SHARES MORE TEMPTING SOME ANALYSTS SAY WHENEVER YOU CAN BUY THESE STOCKS AT BOOK YOU DO WELL SAYS MR GABELLI AS FOR ANY AMERICAN EXPRESS INVESTORS WHO MAY WISH TO SHED THEIR LEHMAN HOLDINGS HE SAYS I ENCOURAGE THEM TO BRING THEIR BLOCKS AND OFFER THEM TO ME AMERICAN EXPRESS SAID YESTERDAY THAT IT WILL PUMP IN 11 BILLION TO COMPLETE THE LEHMAN SPINOFF NEW LEHMAN STOCK WILL BE DISTRIBUTED TO AMERICAN EXPRESS SHAREHOLDERS AS A SPECIAL DIVIDEND ONEFIFTH OF A NEW LEHMAN COMMON SHARE FOR EACH AMERICAN EXPRESS SHARE HELD AFTERWARD SUBJECT TO REGULATORY APPROVAL LEHMAN WILL START TRADING ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL LEH THE SPINOFF WILL MARK THE END TO A SOMETIMESUNHAPPY 10YEAR UNION WITH AMERICAN EXPRESS FOUNDED IN 1850 LEHMAN FELL INTO THE ARMS OF AMERICAN EXPRESS IN 1984 AFTER A BITTER INTERNAL FIGHT FOR CONTROL BETWEEN THE SECURITIES FIRM'S TRADERS AND INVESTMENT BANKERS THE MARRIAGE WAS MARRED BY BICKERING AND CULTURE CLASHES AND CONTINUING INVESTMENT STUMBLES AND CHARGES BECAUSE OF THESE CHARGES LEHMAN HAS MANAGED NET INCOME TOTALING JUST 18 MILLION IN THE PAST THREE YEARS DURING THE BIGGEST BULL MARKET EVER FOR WALL STREET DON'T BUY LEHMAN STOCK THE MINUTE IT STARTS TRADING SOME ANALYSTS WARN THAT'S BECAUSE THEY EXPECT AN INITIAL PLUNGE IN THE SHARES POSSIBLY AS MUCH AS 25 WHY MIGHT AMERICAN EXPRESS STOCKHOLDERS BE PRONE TO DUMP THEIR NEW LEHMAN SHARES MANY HOLDERS OF THE PARENT CONCERNED ABOUT LEHMAN'S ZIGZAGGING EARNINGS NEVER REALLY WANTED TO OWN LEHMAN AND THERE'S A SECOND PRICEDEPRESSING FACTOR THE BEHAVIOR OF STOCKINDEX INVESTMENT FUNDS INDEX FUNDS SEEK TO MIMIC BROAD STOCK MARKET MOVES BY OWNING EACH COMPANY IN AN INDEX SUCH AS THE DOW JONES INDUSTRIAL AVERAGE OR STANDARD & POOR'S 500 THESE FUNDS WILL BE FORCED TO SELL LEHMAN SHARES BECAUSE UNLIKE AMERICAN EXPRESS LEHMAN WON'T INITIALLY BE PART OF THE STOCK INDEXES AS MUCH AS 10 OF AMERICAN EXPRESS'S STOCK IS HELD BY INDEX FUNDS ANALYSTS SAY LEHMAN WILL BE DRESSED UP BEFORE CUTTING THE CORPORATE APRONSTRINGS IT WILL RECEIVE A 125 BILLION INFUSION BRINGING STOCKHOLDER EQUITY TO 33 BILLION THAT'S STILL LESS CAPITAL THAN SEVERAL RIVALS HAVE BUT IT'S WELL ABOVE THE 205 BILLION THAT LEHMAN POSSESSED AT THE END OF 1993 EQUITY IS CRUCIAL SERVING AS THE GREASE FOR WALL STREET'S TRADING ENGINES THE INFUSION WON'T AFFECT FIRSTQUARTER EARNINGS THOUGH LEHMAN PLANS TO TAKE A 30 MILLION PRETAX CHARGE FOR SEVERANCE PAYMENTS STEMMING FROM ITS COSTCUTTING PROGRAM FOR THE QUARTER LEHMAN WILL POST NET OF ABOUT 60 MILLION AFTER THE CHARGE ANALYSTS BELIEVE LEHMAN WON'T DISCUSS THE QUARTER'S EARNINGS WHICH ARE DUE OUT LATER THIS MONTH SOME DETAILS OF THE LEHMAN DEAL FIRST AMERICAN EXPRESS SAID IT WILL BUY 904 MILLION IN NEW LEHMAN COMMON AND 200 MILLION IN NEW LEHMAN PREFERRED SHARES ACCORDING TO A REGULATORY FILING IN AN UNEXPECTED DEVELOPMENT NIPPON LIFE INSURANCE CO WHICH CURRENTLY HAS A 12 VOTING STAKE IN LEHMAN WILL BUY 892 MILLION OF LEHMAN COMMON THE FILING SAID THE REMAINDER 57 MILLION WILL BE BOUGHT BY LEHMAN EMPLOYEES THROUGH AN EXISTING EMPLOYEEOWNERSHIP PLAN IN THE END AMERICAN EXPRESS WILL DISTRIBUTE ALL ITS LEHMAN COMMON TO AMERICAN EXPRESS HOLDERS AFTER THE DISTRIBUTION LEHMAN EXPECTS TO HAVE ABOUT 55000 STOCKHOLDERS AND ABOUT 1058 MILLION COMMON SHARES OUTSTANDING DON'T LOOK FOR A FAT DIVIDEND RATE IN THE FILING LEHMAN SAYS IT EXPECTS TO PAY 125 CENTS A COMMON SHARE FOR THIS YEAR'S THIRD QUARTER BUT NOTES THAT THE DIVIDEND RATE ISN'T ASSURED ANOTHER POTENTIAL PLUS FOR LEHMAN HOLDERS DOWN THE LINE ANALYSTS SAY AN INDEPENDENT LEHMAN COULD BE AN ATTRACTIVE CANDIDATE FOR A TAKEOVER AS A PURE TRADING AND INVESTMENTBANKING PLAY SOME INVESTORS MIGHT QUESTION THE PAY LEVELS OF LEHMAN EXECUTIVES CHIEF EXECUTIVE OFFICER RICHARD S FULD JR WHO YESTERDAY WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN RECEIVED A 1993 PAY PACKAGE OF 93 MILLION THE FILING SAID T CHRISTOPHER PETTIT WHO WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER RECEIVED 1993 PAY OF 74 MILLION THE FILING SAID EVEN LEHMAN EXECUTIVES WHO WERE DEMOTED OR OUSTED LAST YEAR DID WELL IN TERMS OF PAY LEHMAN VICE CHAIRMAN HOWARD L CLARK JR WHO LAST YEAR WAS OUSTED AS CHAIRMAN RECEIVED A 1993 PAY PACKAGE OF 41 MILLION THE FILING SAID AND J TOMILSON HILL WHO WAS UNCEREMONIOUSLY DUMPED AS LEHMAN COPRESIDENT A YEAR AGO RECEIVED 55 MILLION IN 1993 COMPENSATION MR HILL WILL ALSO RECEIVE 11 MILLION IN DECEMBER 1994 SUBJECT TO HIS COMPLIANCE WITH RESTRICTIVE COVENANTS ACCORDING TO THE FILING THE AMPLE EXECUTIVE PAY COMES AMID THE AGGRESSIVE COSTCUTTING DRIVE AGAINST BLOATED COSTS ANALYSTS HAVE WARNED LEHMAN ABOUT ITS SPENDTHRIFT WAYS WITH ABOUT 9000 EMPLOYEES LEHMAN PAID OUT 53 OF ITS NET REVENUE IN COMPENSATION LAST YEAR COMPARED WITH ABOUT 50 FOR MANY RIVALS UNDER THE COSTCUTTING PROGRAM AS MANY AS 400 INVESTMENT BANKERS TRADERS AND SALESPEOPLE HAVE BEEN FORCED TO RESIGN THIS YEAR ON TOP OF 1500 EMPLOYEES FORCED OUT LAST YEAR LEHMAN ALSO HAS SLASHED A WIDE RANGE OF OTHER EXPENSES FROM CAB FARES TO AIRLINE TICKETS TO PENCILS PROSPECTIVE BUYERS OF LEHMAN STOCK MAY QUESTION THE TIMING OF THE SPINOFF NOW AMID THE FOURTH YEAR OF A BIG RALLY IN BROKERAGE PROFITS THE KEY HERE IS HOW EFFECTIVELY LEHMAN'S MANAGEMENT IS GOING TO BE ABLE TO GET THINGS HUMMING ON ALL EIGHT CYLINDERS SAYS WILLIAM HARTMAN A JP MORGAN SECURITIES ANALYST THE REWARDS ARE POTENTIALLY VERY BIG BUT THERE'S ALSO A LOT OF RISK MR HARTMAN PREFERS OTHER MORESEASONED BROKERAGE PLAYS SUCH AS MERRILL LYNCH AND MORGAN STANLEY AS OPPOSED TO THOSE WHO ARE HAVING TO DO A LOT OF REJIGGERING LEHMAN LONG A FORCE IN THE BOND MARKET MUST BEEF UP ITS PRESENCE IN STOCK TRADING AND STOCK UNDERWRITING ANALYSTS SAY AND IT MUST SNARE MORE OF THE EVERGROWING PROFIT PIE FROM DERIVATIVE PRODUCTS SUCH AS SWAPS LEHMAN MADE A MOVE IN THAT DIRECTION BY LAUNCHING A TRIPLEARATED DERIVATIVES SUBSIDIARY THE IMMEDIATE TEST IS WHETHER LEHMAN CAN START DELIVERING STRONG CONSISTENT PROFITS IN A TOUGHER BROKERAGE ENVIRONMENT AND KEEP ITS COSTS DOWN ANALYSTS SAY IF THESE GUYS DELIVER THE EARNINGS THIS STOCK COULD BE INTERESTING NO QUESTION ABOUT IT SAYS JAMES HANBURY AN ANALYST AT WERTHEIM SCHRODER BUT LEHMAN'S PAST RECORD IS MIXED AT BEST MR HANBURY SAYS IT HAS TO PERFORM 9404060144 940406 CAMPO SALES INCREASED IN MARCH NEW ORLEANS CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC SAID ITS SALES AT STORES OPEN MORE THAN A YEAR ROSE 26 IN MARCH TO 73 MILLION FROM 58 MILLION A YEAR EARLIER THE RETAILER'S TOTAL SALES FOR THE MONTH NEARLY DOUBLED TO 151 MILLION FROM 79 MILLION 9404060143 940406 WHO'S NEWS CONRAIL INC CONRAIL INC PHILADELPHIA THIS RAILFREIGHT CARRIER NAMED THREE VICE PRESIDENTS TO SUCCEED THREE WHO ARE RETIRING UNDER THE COMPANY'S EARLY RETIREMENT PROGRAM DENNIS A AROUCA 42 YEARS OLD LABOR RELATIONS SUCCEEDS ROBERT E SWERT 67 JOHN A MCKELVEY 43 MATERIALS AND PURCHASING SUCCEEDS JEREMY T WHATMOUGH 59 AND ALBERT M POLINSKY 47 INFORMATION SYSTEMS SUCCEEDS ROBERT O WAGNER 57 9404060142 940406 TOWERS PERRIN REJECTS TAKEOVER OFFER FROM MUCH SMALLER BUCK CONSULTANTS BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BUCK CONSULTANTS INC MADE AN AUDACIOUS BID TO ACQUIRE TOWERS PERRIN A MAJOR MANAGEMENT CONSULTING FIRM THAT IS MORE THAN FOUR TIMES BUCK'S SIZE BUT BUCK WAS IMMEDIATELY REBUFFED BUCK WHICH MADE THE OFFER LATE LAST MONTH INDICATED A MERGER IS STILL POSSIBLE DALLAS KERSEY A PRINCIPAL AT TOWERS PERRIN BASED IN VALHALLA NY RULED OUT MERGER TALKS WITH BUCK AT THIS TIME ANOTHER TOWERS PERRIN OFFICIAL HOWEVER WHO REQUESTED ANONYMITY SAID MERGER DISCUSSIONS ARE STILL POSSIBLE TOWERS PERRIN HAS UNSUCCESSFULLY TRIED TO ACQUIRE ITS SMALLER RIVAL FOR YEARS AND CURRENTLY SEEKS OTHER ACQUISITIONS MR KERSEY SAID BUCK RANKED 24TH AMONG THE NATION'S MANAGEMENT CONSULTING FIRMS IN 1992 REVENUE FAR BEHIND TOWERS PERRIN IN EIGHTH PLACE ACCORDING TO CONSULTANTS NEWS AN INDUSTRY NEWSLETTER IN FITZWILLIAM NH BOTH ARE PRIVATELY HELD A COMBINATION OF BUCK AND TOWERS PERRIN WOULD CREATE ONE OF THE NATION'S BIGGEST MANAGEMENT CONSULTING BUSINESSES IN AN INDUSTRY UNDERGOING MUCH CONSOLIDATION WHEN YOU COMBINE THE QUALITY OF OUR FIRMS AND THE ARRAY OF SERVICES WE EACH OFFER THE NEW FIRM WOULD BE A POWERHOUSE IN OUR INDUSTRY WILLIAM GIEGERICH JR BUCK'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN A MEMORANDUM TO EMPLOYEES DATED THURSDAY THE MEMO WAS OBTAINED BY THE WALL STREET JOURNAL IN HIS MEMO MR GIEGERICH ACKNOWLEDGED THAT TOWERS PERRIN OFFICIALS HAD TURNED DOWN BUCK'S ACQUISITION OFFER BUT SAID THESE OFFICIALS HAD SUGGESTED THAT WE DISCUSS A MERGER OF THE TWO FIRMS WE ARE WILLING TO DISCUSS THE POSSIBILITY OF A COMBINATION OF OUR ORGANIZATIONS MR GIEGERICH ADDED IN THE MEMO THE OFFICIAL COULDN'T BE REACHED FOR COMMENT A BUCK SPOKESWOMAN SAID WE DON'T DO BUSINESS IN THE PRESS TOWERS PERRIN'S MR KERSEY DISMISSED THE BUCK TAKEOVER ATTEMPT AS THE GOOFIEST THING WE'VE EVER SEEN AND CLEARLY OUT OF LEFT FIELD RATHER THAN A MOUSE ATTEMPTING TO SWALLOW AN ELEPHANT HE SAID THE BID IS AN EXAMPLE OF A MOUSE WITH BAD EYESIGHT IN PARTICULAR MR KERSEY SAID MR GIEGERICH GROSSLY MISUNDERSTOOD OUR FINANCIALS THE GIEGERICH MEMO CLAIMED THAT BUCK HAS PRODUCED HIGHER PROFITS THAN TOWERS PERRIN FOR THE PAST FIVE YEARS COUNTERED MR KERSEY WE ARE A HIGHLY PROFITABLE ORGANIZATION AND AS PROFITABLE AS BUCK THE SECOND TOWERS PERRIN OFFICIAL SUGGESTED THAT A MERGER MAY STILL TAKE PLACE BECAUSE BUCK WOULD BE A GOOD FIT JUST BECAUSE BUCK'S DARING BID RUFFLED FEATHERS THAT DOESN'T CHANGE THE FUNDAMENTALS THIS TOWERS PERRIN CONSULTANT NOTED BUCK EXECUTIVES PROBABLY HAVE INTEREST THEY NEVER HAD BEFORE AND WE'VE ALWAYS HAD INTEREST IN A COMBINATION THE GIEGERICH MEMO SUGGESTED NAMING THE COMBINED FIRM TOWERS BUCK CORP UNDER ITS OFFER BUCK WOULD GIVE EACH SHAREHOLDER OF TOWERS PERRIN CASH EQUAL TO THE BOOK VALUE OF THE SHAREHOLDINGS BUCK HAS ABOUT 25 MILLION IN THE BANK AND HAS ARRANGED CREDIT FACILITIES TO COVER THE BALANCE OF THE OFFER'S CASH PORTION ACCORDING TO THE MEMO IN ADDITION EACH TOWERS PERRIN COMMON AND PREFERRED SHAREHOLDER WOULD RECEIVE BUCK STOCK EQUAL IN VALUE TO THE BOOK VALUE OF THEIR SHAREHOLDINGS AS OF THE CLOSING DATE THE MEMO CONTINUED BY PURSUING TOWERS PERRIN BUCK WAS LOOKING FOR A BIT OF A BARGAIN ONE BUCK CONSULTANT CONCEDED MR GIEGERICH LIKES TO WIN ALL THE TIME HE ADDED HE'S THE KIND OF GUY YOU'D FIGURE WOULD COME IN AT 25 OF THE TARGET'S SIZE AND TRY TO EAT THE WHOLE THING BUCK PRIMARILY SPECIALIZES IN BENEFITS AND ACTUARIAL CONSULTING TOWERS PERRIN OPERATES IN THOSE FIELDS AS WELL AS IN EXECUTIVE COMPENSATION GENERAL MANAGEMENT CONSULTING AND OTHER AREAS IN THE FISCAL YEAR ENDED MARCH 31 1993 BUCK HAD REVENUE OF 1571 MILLION THE GIEGERICH MEMO DISCLOSED TOWERS PERRIN'S WORLDWIDE REVENUE TOTALED 709 MILLION LAST YEAR A GAIN OF ABOUT 34 FROM 1992 MR KERSEY SAID 9404060141 940406 INTERNATIONAL MONTEDISON UNIT GETS CONTRACT MILAN ITALY'S TECNIMONT A UNIT OF MONTEDISON SPA SAID IT WAS AWARDED A CONTRACT VALUED AT 50 BILLION LIRE 306 MILLION TO BUILD A CHEMICALS PLANT IN CHINA TECNIMONT WILL SUPPLY DAQING PETROLEUM TECHNOLOGY AND HEILONGJIANG MACHINERY WITH LICENSING ENGINEERING MATERIALS AND TECHNICAL ASSISTANCE FOR THE PLANT WHICH WILL BEGIN OPERATION BY THE END OF 1996 9404060140 940406 INTERNATIONAL BERLUSCONI FORMALLY ENDS TALKS ABOUT NEW GOVERNMENT FOR ITALY BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN AFTER A WEEK OF ACERBIC ATTACKS FROM AN ERSTWHILE ELECTORAL ALLY MEDIA MAGNATE SILVIO BERLUSCONI FORMALLY BROKE OFF TALKS ON FORMATION OF ITALY'S NEXT GOVERNMENT THE MOVE CASTS FURTHER DOUBT OVER THE ABILITY OF THE BERLUSCONILED FREEDOM ALLIANCE TO PUT TOGETHER A COALITION GOVERNMENT BEFORE PARLIAMENT CONVENES APRIL 15 FOR THE FIRST TIME SINCE LAST WEEK'S PARLIAMENTARY ELECTIONS CAPPING A WEEK OF INFIGHTING WITHIN THE FREEDOM ALLIANCE MR BERLUSCONI ANNOUNCED LAST NIGHT THAT HE WOULD SUSPEND NEGOTIATIONS WITH HIS TWO POLITICAL PARTNERS THE FEDERALIST NORTHERN LEAGUE AND THE NEOFASCIST NATIONAL ALLIANCE TOGETHER WITH THE TELEVISION TYCOON'S FORZA ITALIA MOVEMENT THE THREE PARTIES WON AN ABSOLUTE MAJORITY IN PARLIAMENT IN THE ELECTIONS MARCH 27 AND 28 INSTEAD OF NEGOTIATING MR BERLUSCONI SAID HE WOULD WAIT FOR PRESIDENT OSCAR LUIGI SCALFARO TO DECIDE ON A CANDIDATE AS PRIME MINISTER IF THE PRESIDENT CHOOSES A MEMBER OF FORZA ITALIA THE DAY AFTERWARD THERE WILL BE A GOVERNMENT PROGRAM A TEAM AND WITHOUT CONSULTATIONS IT WILL GO DIRECTLY TO PARLIAMENT FOR A VOTE OF CONFIDENCE MR BERLUSCONI TOLD A NEWS CONFERENCE SHOULD THE PRIME MINISTERDESIGNATE FAIL TO FORM A GOVERNMENT THE PRESIDENT WOULD HAVE TO CALL ELECTIONS AGAIN TO COMPLETE THE HOUSECLEANING MR BERLUSCONI SAID AS LEADER OF THE LARGEST PARTY IN PARLIAMENT MR BERLUSCONI HAS BEEN WIDELY EXPECTED TO BE NAMED PRIME MINISTER HOWEVER HE WILL NEED THE HELP OF BOTH THE NORTHERN LEAGUE AND THE NATIONAL ALLIANCE TO COMMAND A MAJORITY IN PARLIAMENT THE BREAKDOWN IN TALKS CAME AFTER NORTHERN LEAGUE LEADER UMBERTO BOSSI AND OTHER MEMBERS OF HIS PARTY EXPRESSED STRONG OPPOSITION TO HAVING MR BERLUSCONI LEAD THE GOVERNMENT THEIR OPPOSITION WAS ACCOMPANIED BY A STRING OF INSULTS MR BOSSI YESTERDAY CALLED THE MEDIA TYCOON BERLUSKAISER AND AN AUTOCRAT AND WARNED THAT HE WOULDN'T ACCEPT MR BERLUSCONI AS PRIME MINISTER BERLUSCONI IS THE PROBLEM BECAUSE THANKS TO HIS TELEVISION HE'S CAPABLE OF MANIPULATING PUBLIC OPINION MR BOSSI SAID MR BERLUSCONI CONTROLS ALMOST HALF OF THE ITALIAN TELEVISION MARKET THROUGH HIS FININVEST MEDIA CONGLOMERATE THE LEAGUE HAS PROPOSED THAT ONE OF ITS MEMBERS BE NAMED PRIME MINISTER AND HAS INSISTED THAT ITS FEDERALIST PLATFORM WHICH CALLS FOR DECENTRALIZING TAXATION AND PROVIDING MORE AUTONOMY FOR THE REGIONS BE ACCEPTED BY ITALY'S NEXT GOVERNMENT MR BERLUSCONI CALLED THE LEAGUE'S INTRANSIGENCE A BETRAYAL OF THE VOTERS WHO GAVE THE THREEWAY ALLIANCE A MAJORITY IN PARLIAMENT IT SEEMS SCANDALOUS TO ME WHAT'S HAPPENING MR BERLUSCONI SAID ONE SHOULD FEEL RESPONSIBLE FOR THE MANDATE OF THE VOTERS MEANWHILE GIANFRANCO FINI HEAD OF THE NATIONAL ALLIANCE HAS PLEDGED HIS SUPPORT FOR MR BERLUSCONI AS PRIME MINISTER MR FINI SAID MR BOSSI MUST ADHERE TO THE FREEDOM ALLIANCE WHICH EMERGED VICTORIOUS IN THE ELECTIONS HE MUST BE WITH US HE HAS NO WHERE ELSE TO GO MR FINI ADDED THE COLLAPSE OF NEGOTIATIONS DIDN'T COME AS A SURPRISE TO MANY POLITICAL OBSERVERS THE THREE PARTIES WHILE UNITED FOR TACTICAL PURPOSES DURING THE ELECTIONS DIFFER WIDELY ON SEVERAL IMPORTANT POLITICAL ISSUES IN PARTICULAR THE NATIONAL ALLIANCE IS AGAINST DECENTRALIZATION OF TAX COLLECTION WHICH IS A PRIMARY DEMAND OF THE LEAGUE IT ALSO FAVORS PRESERVING SOME NATIONAL OWNERSHIP OF BUSINESS IN DIRECT CONTRAST WITH FORZA ITALIA 9404060139 940406 ASTRA FORMS SALES FIRM IN BRAZIL STOCKHOLM AB ASTRA A SWEDISH PHARMACEUTICAL COMPANY SAID IT WILL SET UP ITS OWN SALES COMPANY IN BRAZIL TO MARKET LOCAL ANESTHESIA PRODUCTS SALES OF THE PRODUCTS IN BRAZIL WERE EARLIER CARRIED OUT THROUGH A LICENSEE AGREEMENT WITH MERRELL LEPETIT ASTRA SAID ASTRA'S LOCAL ANESTHESIA AGENTS HAVE A MARKETLEADING POSITION IN BRAZIL WITH SALES VALUED AT ROUGHLY 150 MILLION KRONOR 19 MILLION LAST YEAR ASTRA SAID 9404060138 940406 CORRECTIONS CORP WINS STATE JOB NASHVILLE TENN CORRECTIONS CORP OF AMERICA SAID IT WILL DESIGN BUILD AND OPERATE A 24 MILLION 750BED STATE PRISON IN BAY COUNTY FLA THE COMPANY SAID IT SIGNED A CONTRACT SUBJECT TO APPROVAL BY THE FLORIDA LEGISLATURE AND EXPECTS CLEARANCE WITHIN TWO WEEKS 9404060137 940406 CAMBRIDGE SHOPPING CENTRES TORONTO CAMBRIDGE SHOPPING CENTRES LTD SAID IT SOLD HALF ITS 676 STAKE IN BAYSHORE SHOPPING CENTRE IN NEPEAN ONTARIO TO THE ONTARIO TEACHERS' PENSION PLAN BOARD FOR 475 MILLION CANADIAN DOLLARS US34 MILLION CAMBRIDGE SHOPPING AN OWNER AND OPERATOR OF SHOPPING MALLS WILL CONTINUE TO OPERATE BAYSHORE THE PENSION PLAN BOARD INVESTS PENSION FUNDS FOR ONTARIO TEACHERS 9404060136 940406 SOUTHWESTERN BELL AND COX CANCEL VENTURE RECENT FCC CABLE RULING IS CITED IN BREAKDOWN OF 49 BILLION PROJECT BY ANITA SHARPE AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL SOUTHWESTERN BELL CORP AND COX ENTERPRISES INC CITING INCREASINGLY STRINGENT GOVERNMENT REGULATION CALLED OFF THEIR PLANS TO FORM A 49 BILLION CABLETELEVISION PARTNERSHIP SOUTHWESTERN BELL SAID IT INITIATED THE BREAKUP AFTER EVALUATING 700 PAGES OF RULES GOVERNING THE CABLE BUSINESS THAT WERE ISSUED LAST WEEK BY THE FEDERAL COMMUNICATIONS COMMISSION WE CONCLUDED THAT IT'S UNLIKELY THE CABLE INDUSTRY CAN GENERATE THE CASH FLOW WE EXPECTED SAID JIM KAHAN SENIOR VICE PRESIDENT FOR STRATEGIC PLANNING AND CORPORATE DEVELOPMENT AT THE SAN ANTONIO TEXAS REGIONAL BELL COMPANY IN THE PLANNED DEAL COX ENTERPRISES' COX CABLE UNIT WOULD HAVE BEEN THE MAIN PORTION OF THE NEW COMPANY COX CABLE WITH ABOUT 17 MILLION SUBSCRIBERS IS THE NATION'S SIXTHLARGEST CABLE SYSTEM ARMED WITH THE CAPITAL FROM SOUTHWESTERN BELL COX PLANNED TO QUICKLY EXPAND ITS SUBSCRIBER BASE TO AT LEAST FOUR MILLION WHICH WOULD HAVE MADE IT THE THIRDLARGEST OPERATOR IN THE US THIS DEAL WOULD HAVE ALLOWED US TO MOVE FASTER SAID COX CABLE PRESIDENT JAMES O ROBBINS WHO ADDED THAT COX WILL REASSESS ITS CAPITAL SPENDING CLOSELY HELD COX ENTERPRISES IS BASED IN ATLANTA THE DEAL IS THE SECOND TO COLLAPSE AFTER THE FCC ANNOUNCED A NEW ROUND OF 7 CUTS IN CABLE RATES THIS YEAR BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC THE LARGEST CABLE OPERATOR IN THE US CITED THE ROLLBACKS IN THE UNRAVELING OF BELL'S PLANNED PURCHASE OF TCI WHICH WAS VALUED AT MORE THAN 16 BILLION IN FEBRUARY THE COLLAPSE OF THE SOUTHWESTERN BELL DEAL TAKES SOME OF THE PRESSURE OFF CABLE OPERATORS WHO HAVE BEEN RUSHING TO UPGRADE THEIR SYSTEMS OR NEGOTIATE WITH TELEPHONE COMPANIES LARGELY TO KEEP UP WITH COMPETITORS THE FCC RULES PUBLISHED LAST WEEK ARE BEING BLAMED FOR THE RENEGOTIATION OF SEVERAL OTHER CABLE/TELEPHONE COMPANY DEALS INCLUDING THE 400 MILLION ALLIANCE BETWEEN JONES INTERNATIONAL INC AND BCE INC BELLSOUTH CORP'S AGREEMENT TO ACQUIRE A 225 STAKE IN PRIME MANAGEMENT CO IS STILL INTACT THE TWO COMPANIES HAVE ALREADY CLOSED ON A 250 MILLION LOAN BY BELLSOUTH TO HELP PRIME RECAPITALIZE A CABLE SYSTEM IN LAS VEGAS BELLSOUTH AND PRIME STRUCTURED THEIR TRANSACTION AS A LOAN PARTLY TO PRECLUDE THE PROBLEMS THAT ARE NOW CROPPING UP WITH GOVERNMENT REGULATIONS AND PRICE FLUCTUATIONS ACCORDING TO A BELLSOUTH SPOKESMAN SOUTHWESTERN BELL BELIEVED IT HAD NO SUCH PROTECTION THE PHONE COMPANY DETERMINED GOVERNMENT REGULATION COULD GET WORSE BEFORE IT GETS BETTER MR KAHAN SAID BUT MR ROBBINS SAID THE NEW FCC RULES SHOULD HAVE A SHORTTERM IMPACT WE FEEL LONGTERM THIS BUSINESS IS A GOOD BUSINESS SOUTHWESTERN BELL AND COX HAD ANNOUNCED PLANS LAST DECEMBER TO FORM A 49 BILLION PARTNERSHIP TO PURSUE CABLE TELEPHONE AND INTERACTIVE OPPORTUNITIES IN EACH OTHER'S MARKETS COX A MEDIA COMPANY WAS TO CONTRIBUTE 21 CABLE SYSTEMS VALUED AT THE TIME AT 33 BILLION SOUTHWESTERN WAS TO HAVE CONTRIBUTED 16 BILLION IN CAPITAL AT THE TIME THE TWO COMPANIES VALUED COX'S CABLE SYSTEMS AT 11 TIMES THEIR APPROXIMATE ANNUAL CASH FLOW OF 300 MILLION WHILE EXPRESSING DISAPPOINTMENT AT THE LOST PROMISE OFFERED BY THE SOUTHWESTERN BELL PARTNERSHIP MR ROBBINS SAID COX WILL CONTINUE TO SCOUT OUT OPPORTUNITIES EVERYBODY'S DOING LUNCH THAT DANCE CONTINUES HE SAID OUR GAME PLAN REMAINS THE SAME WE NEED TO GROW AND WE NEED TO GET ON WITH LIFE AMID THE HUGE RALLY ON WALL STREET YESTERDAY SOUTHWESTERN BELL SHARES CLOSED AT 3950 UP 875 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MOST CABLE OPERATORS ARE STILL TRYING TO GAUGE THE FULL IMPACT OF THE NEW FCC RULES WHICH COULD TAKE MONTHS BUT MANY ARGUE THE FCC'S ACTIONS WILL PUT PRESSURE ON CASH FLOW A KEY FACTOR IN VALUING CABLE SYSTEMS THAT CRIMP IN CASH FLOW THEY SAY WILL HAMPER THE CONSTRUCTION OF HIGHCAPACITY INTERACTIVE NETWORKS WHICH THE INDUSTRY HAS PROMISED TO DELIVER THIS DECADE IT'S GOING TO SLOW DOWN THE DEALS THE COMPETITION AND THIS IDEA OF CONVERGENCE SAID JOHN WALLER CHAIRMAN OF WALLER CAPITAL CORP A CABLE BROKER BUT THE INDUSTRIES ARE STILL HEADED TOWARD A SUPERHIGHWAY FCC CHAIRMAN REED HUNDT DEFENDED THE AGENCY'S LATEST CHANGES TO ITS CABLERATE RULES WHILE THE AGENCY WASN'T FAMILIAR WITH THE CONFIDENTIAL DISCUSSIONS BETWEEN COX AND SOUTHWESTERN BELL ITS RECENT RATE RULES HAVE IN NO WAY PUT AN END TO NEW VENTURES IN THE TELECOMMUNICATIONS AREA HE SAID THE NEW RULES MR HUNDT SAID ARE FAIR TO CABLE SUBSCRIBERS WHO WILL PAY REASONABLE RATES AND FAIR TO CABLE OPERATORS WHO HAVE STRONG INCENTIVES FOR INVESTMENT AND INNOVATION MR HUNDT COULDN'T RESIST A GIBE INCIDENTALLY OUR RULES GOVERNING THE BENCHMARK RATE REGULATION THAT WE RELEASED LAST WEEK TOTAL 14 PAGES 9404060135 940406 UNITED AIRLINES TRAFFIC RISES CHICAGO UNITED AIRLINES A UNIT OF UAL CORP SAID ITS MARCH TRAFFIC ROSE 73 TO 875 BILLION REVENUE PASSENGER MILES FROM 815 BILLION MILES A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED CLIMBED TO 69 FROM 661 FOR THE FIRST THREE MONTHS OF 1994 THE AIRLINE SAID IT FLEW 232 BILLION REVENUE PASSENGER MILES UP 37 FROM THE 224 BILLION MILES FLOWN A YEAR EARLIER LOAD FACTOR ROSE TO 654 FROM 637 9404060134 940406 NEXTEL NIPPON TELEGRAPH PACT RUTHERFORD NJ NEXTEL COMMUNICATIONS INC SAID IT COMPLETED A TECHNOLOGYANDINVESTMENT PACT WITH NIPPON TELEGRAPH & TELEPHONE CORP JAPAN AS PART OF THE AGREEMENT NIPPON TELEGRAPH PURCHASED ABOUT 15 MILLION NEXTEL CLASS A COMMON SHARES FOR 75 MILLION NIPPON TELEGRAPH ENGINEERS WILL HELP DESIGN AND MANAGE THE NETWORK CONNECTING NEXTEL'S EXPANDING DIGITAL WIRELESS SERVICE 9404060133 940406 WHO'S NEWS STARTER CORP STARTER CORP NEW HAVEN CONN THIS APPAREL DESIGNER AND MARKETER NAMED TWO VICE PRESIDENTS R IAN GOMAR 36 YEARS OLD MARKETING AND SCOTT SOFFEN 42 MANUFACTURING/SOURCING BOTH POSITIONS ARE NEW MR GOMAR WAS MOST RECENTLY DIRECTOR OF INTERNATIONAL MARKETING AT LA GEAR INC AND MR SOFFEN WAS VICE PRESIDENT OF MEN'S PRODUCT DEVELOPMENT AT RH MACY & CO 9404060132 940406 PEPPERAND SALT THIS SIDE OF PARADISE DON'T ASK THEM IF THEY'RE 60 YET OR 65 OR MORE SUCH PUBLIC KEEPING SCORE 9404060131 940406 YOUR MONEY MATTERS DURATION' IS A KEY TO BOND FUNDS' RISK BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL THINKING ABOUT BAILING OUT OF YOUR BOND FUND OR MAYBE YOU ARE BARGAIN HUNTING LOOKING TO DIVE INTO SOME FUND THAT HAS BEEN BEATEN UP IN THE RECENT BONDMARKET DEBACLE DON'T DO ANYTHING UNTIL YOU HAVE CHECKED THE DURATION DURATION IS ONE OF THOSE FINANCIALMARKETS TERMS THAT MAKES MANY PEOPLE'S EYES GLAZE OVER BUT YOU DON'T HAVE TO BE A ROCKET SCIENTIST TO USE DURATION AS A TOOL IN JUDGING THE RISK IN BOND FUNDS IT'S AN IMPORTANT WAY TO HELP INVESTORS REALIZE HOW VOLATILE THEIR BOND FUND IS SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS INC A CHICAGO PUBLICATION THAT TRACKS MUTUALFUND PERFORMANCE TECHNICALLY SPEAKING DURATION IS ONE MEASURE OF A BOND'S LIFE IT'S A MATHEMATICAL CALCULATION OF HOW LONG A BOND MUST BE HELD TO REALIZE THE STATED YIELD ASSUMING IT WAS BOUGHT AT FACE VALUE NO MATTER WHAT THE MARKET DOES MORE IMPORTANT FOR THE AVERAGE INVESTOR HOWEVER DURATION MEASURES A BOND FUND'S SENSITIVITY TO INTERESTRATE INCREASES AND DECLINES AND CAN PROVIDE AN EARLY WARNING OF DANGERS AHEAD MOST INVESTORS REALIZE THAT BONDFUND PRICES FALL WHEN INTEREST RATES RISE AND RISE WHEN INTEREST RATES FALL AND MANY INVESTORS KNOW THAT LONGTERM BOND FUNDS ARE MORE SENSITIVE TO A GIVEN INTERESTRATE MOVE THAN SHORTTERM BOND FUNDS DURATION ALLOWS AN INVESTOR TO QUANTIFY THE LIKELY PRICE MOVE TO GET A ROUGH IDEA OF THE IMPACT THAT FUTURE INTERESTRATE CHANGES WILL HAVE ON A BOND FUND YOU MERELY MULTIPLY THE FUND'S DURATION BY THE RISE OR FALL IN INTEREST RATES FOR EXAMPLE SECURITY INCOME CORPORATE BOND FUND HAD A DURATION OF 65 YEARS AS OF THE END OF THE FIRST QUARTER IF INTEREST RATES RISE ONE PERCENTAGE POINT SECURITY INCOME CORPORATE BOND WILL LOSE ABOUT 65 IN PRINCIPAL SAYS JANE TEDDER THE BOND FUND'S MANAGER IF RATES FALL ONE POINT IT SHOULD GAIN ABOUT 65 IF YOU THINK INTEREST RATES WILL CONTINUE TO RISE THE SHORTER THE DURATION OF YOUR BOND FUND THE BETTER SAYS JENNIFER NEWPORT BONDFUND ANALYST FOR MORNINGSTAR WHEN INTEREST RATES ARE HEADED DOWNWARD AS THEY WERE FOR THE PAST DECADE THE LONGER THE DURATION THE BETTER FOR INVESTORS ALTHOUGH DURATION IS WORKED OUT WITH A COMPLICATED MATHEMATICAL FORMULA YOU DON'T NEED TO WHIP OUT YOUR CALCULATOR AND PLUG IN THE PAYMENT SCHEDULE AND MATURITY DATE OF EVERY BOND IN YOUR MUTUAL FUND TO COME UP WITH THE ANSWER MANY MUTUALFUND FAMILIES WILL TELL YOU THE DURATION OF THEIR BOND FUNDS IF YOU CALL THEIR TOLLFREE NUMBERS AND ASK A FUND REPRESENTATIVE IT'S IMPORTANT TO NOTE THAT DURATION NUMBERS ARE A ROUGH ESTIMATE OF WHAT WILL HAPPEN SINCE THE NUMBERS FOR EACH FUND CHANGE DAILY MR REKENTHALER SAYS CURRENTLY MANY BOND FUNDS ARE SHORTENING THEIR DURATIONS BY SELLING LONGERTERM BONDS AND BUYING SHORTERTERM BONDS TO PROTECT AGAINST RISING INTEREST RATES MORNINGSTAR HAS BEGUN TO PUBLISH THE DURATION FIGURE IN ITS BIWEEKLY REPORTS ON CORPORATEGENERAL BOND FUNDS CORPORATEHIGHQUALITY BOND FUNDS AND GOVERNMENT FUNDS SAYS MR REKENTHALER IT PLANS IN THE NEAR FUTURE TO PUBLISH DURATION FIGURES FOR THE BOND PORTIONS OF HYBRID FUNDS BALANCED FUNDS AND ASSETALLOCATION FUNDS THAT INVEST IN BOTH BONDS AND STOCKS THE COMPANY DOESN'T YET HAVE DURATION FIGURES FOR MUNICIPAL AND INTERNATIONAL BOND FUNDS BECAUSE THE NUMBERS ARE MORE DIFFICULT TO GET HE SAYS DURATION IS A SHARPER MEASURE OF VOLATILITY THAN USING A BOND FUND'S AVERAGE MATURITY PROS SAY THAT'S BECAUSE IT TAKES INTO ACCOUNT THAT INVESTORS ARE STEADILY RECOUPING THEIR INVESTMENT EACH TIME THEY RECEIVE AN INTEREST PAYMENT OR ANY INTERIM PRINCIPAL PAYMENT SAYS STEVEN NORWITZ VICE PRESIDENT OF T ROWE PRICE MUTUAL FUND GROUP AVERAGE MATURITY DOESN'T DO THAT IF USING DURATION SOUNDS LIKE TOO MUCH TROUBLE THINK AGAIN PEOPLE ARE BECOMING MUCH MORE CONCERNED ABOUT THE SAFETY OF THEIR BOND PORTFOLIOS NOW SAYS WILLIAM JOHN MIKUS PARTNER IN FINANCIAL DESIGN A LOS ANGELES INVESTMENT ADVISORY FIRM THEY HAVE TO REDOUBLE THEIR EFFORTS TO UNDERSTAND WHAT THEY OWN AND WHAT THEY ARE BUYING DURATION IS THE KEY TO HOW YOUR BOND FUND WILL REACT TO FURTHER RISES IN INTEREST RATES HERE'S HOW SEVERAL CORPORATE HIGHQUALITY BOND FUNDS WITH DIFFERENT DURATIONS HAVE REACTED TO THE LATEST RISE IN INTEREST RATES 9404060130 940406 WHO'S NEWS DOMINION RESOURCES INC DOMINION RESOURCES INC RICHMOND VA JAMES P O'HANLON VICE PRESIDENT NUCLEAR OPERATIONS AT THE VIRGINIA ELECTRIC & POWER CO SUBSIDIARY OF THE UTILITY HOLDING COMPANY WAS NAMED SENIOR VICE PRESIDENT NUCLEAR AT THE UNIT EFFECTIVE JUNE 1 MR O'HANLON SUCCEEDS WILLIAM L STEWART WHO IS RETIRING UNDER THE COMPANY'S EARLYRETIREMENT PROGRAM BUT WILL BECOME EXECUTIVE VICE PRESIDENT NUCLEAR AT ARIZONA PUBLIC SERVICE CO MESSRS O'HANLON AND STEWART ARE BOTH 50 YEARS OLD 9404060129 940406 ECONOMY ECONOMIC INDEX SLID IN FEBRUARY STORMS BLAMED SHORTER WORKWEEKS CAUSED SLIGHT RETREAT BY INDEX OF LEADING INDICATORS BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT'S CHIEF GAUGE OF FUTURE ECONOMIC VIGOR SLIPPED SLIGHTLY IN FEBRUARY AS WINTER WEATHER CURTAILED WORKWEEKS THE INDEX OF LEADING ECONOMIC INDICATORS FELL 01 FROM JANUARY THE FIRST DECLINE IN SEVEN MONTHS THE COMMERCE DEPARTMENT SAID JANUARY'S INCREASE WAS REVISED TO 04 FROM 03 AND DECEMBER'S TO 06 FROM 07 THE SLIGHT DECLINE WAS SHRUGGED OFF BY MOST ECONOMISTS ALTHOUGH IT ENCOURAGED SOME TRADERS ON WALL STREET STOCK AND BOND PRICES REBOUNDED YESTERDAY AFTER SEVERAL DAYS OF DECLINES AND WILD TRADING SIX OF THE 11 ELEMENTS IN THE INDEX CONTRIBUTED TO THE FEBRUARY DECLINE DRAGGING DOWN THE REPORT THE MOST WERE THE SHORTER WORKWEEKS CAUSED BY THE SEVERE FEBRUARY WEATHER OTHER FALLING INDICATORS WERE THE MONEY SUPPLY CONSUMER EXPECTATIONS MANUFACTURERS' NEW ORDERS AND STOCK PRICES MOST ECONOMISTS FOUND THE REPORT IN LINE WITH EXPECTATIONS OF A STRONG FIRST QUARTER WITH GROWTH EASING SLIGHTLY THE REST OF THE YEAR ACROSS THE BOARD WE'RE GETTING SIGNS THAT THE ECONOMY IS IN GOOD SHAPE SAID ED YARDENI OF CJ LAWRENCE SECURITIES FIRM IN NEW YORK THE MARCH REPORT ON LEADING INDICATORS IS EXPECTED TO IMPROVE BASED ON GOVERNMENT REPORTS ALREADY RELEASED MR YARDENI PROJECTS THAT THE AVERAGE WORKWEEK WHICH SURGED IN MARCH WILL ADD 045 PERCENTAGE POINT TO THE LEADING INDICATORS IN THE MONTH AND CONSUMER EXPECTATIONS WILL CONTRIBUTE 003 POINT HOWEVER DAVID BOSTIAN CHIEF ECONOMIST FOR HERZOG HEINE & GEDULD INC OF NEW YORK SAID HE VIEWED THE SLIGHT DECLINE AS THE BEGINNING OF A MODEST DOWNTREND RECENT INTEREST RATE RISES THE CLINTON ADMINISTRATION'S TAX INCREASE AND HIGHER LEVELS OF CONSUMER DEBT HE SAID HAVE PROMPTED HIM TO SCALE BACK HIS ECONOMIC FORECAST FOR THE YEAR TO 29 FROM 3 HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A 01 DECREASE IN THE INDEX FOR FEBRUARY AND A 04 INCREASE FOR JANUARY THE SEASONALLY ADJUSTED INDEX NUMBERS 1982=100 FOR FEBRUARY AND THE CHANGE FROM JANUARY ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 116 UP FROM 115 IN THE PREVIOUS MONTH 9404060128 940406 HEILIGMEYERS POSTS GAINS AS OF MARCH 31 HEILIGMEYERS OPERATED 583 STORES IN 22 STATES 9404060127 940406 TECHNOLOGY BARD RECEIVES APPROVAL FOR HEARTDEVICE SETTLEMENT MURRAY HILL NJ CR BARD INC SAID A US DISTRICT COURT IN BOSTON APPROVED A PLEA AGREEMENT BETWEEN THE COMPANY AND THE GOVERNMENT RELATED TO ITS SALE OF DEFECTIVE HEART CATHETERS UNDER THE PREVIOUSLY REPORTED AGREEMENT BARD WILL PAY A FINE AND CIVIL DAMAGES TOTALING 61 MILLION THE ACCORD ALSO CALLS FOR ADDITIONAL CORRECTIVE ACTIONS INCLUDING FORMING A REGULATORY COMPLIANCE COMMITTEE OF THE BOARD EXPANDING AND REVISING THE CORPORATE COMPLIANCE PROGRAM AND HIRING A VICE PRESIDENT FOR SCIENTIFIC AFFAIRS THE AGREEMENT WAS REACHED LAST OCTOBER WHEN THE COMPANY'S FORMER CHAIRMAN AND FIVE OTHER FORMER OFFICERS WERE INDICTED FOR THEIR ALLEGED INVOLVEMENT IN A SCANDAL OVER THE HEALTHCARE PRODUCTS COMPANY'S HEARTSURGERY INSTRUMENTS PROSECUTORS HAD ALLEGED THAT THE DEFECTIVE CATHETERS PUT HUNDREDS OF LIVES AT RISK RESULTED IN SCORES OF EMERGENCY SURGERIES AND CAUSED TWO DEATHS WHEN THE IMPLANTED DEVICES FAILED THE CASE AGAINST THE FORMER OFFICIALS IS PENDING WILLIAM H LONGFIELD BARD'S PRESIDENT AND CHIEF OPERATING OFFICER SAID MANAGEMENT SINCERELY REGRETS THE ACTIVITIES THAT LED TO THE SETTLEMENT 9404060126 940406 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB WITH EVERYBODY IN WASHINGTON NOW ON WHITEWATER PATROL IT'S WORTH PONDERING THE SAGA OF JANET MULLINS STEVEN BERRY ELIZABETH TAMPOSI MARGARET TUTWILER ET AL TO REFRESH MEMORIES THOSE ARE THE FORMER BUSH ADMINISTRATION AIDES WHOSE NAMES AROSE TWO OR THREE SCANDALS BACK WHEN THE ISSUE WAS WHETHER THE BUSH TEAM HAD IMPROPERLY SEARCHED BILL CLINTON'S PASSPORT FILE IN SEARCH OF DIRT DURING THE 1992 CAMPAIGN THE WORLD HAS LONG SINCE MOVED ON BUT NOT THOSE WHO FELL UNDER THE PASSPORTGATE CLOUD ALMOST 16 MONTHS AGO AN INDEPENDENT COUNSEL WAS NAMED TO INVESTIGATE THE SEEMINGLY SIMPLE QUESTION OF WHETHER LAWS WERE BROKEN TODAY HE'S STILL IN BUSINESS THE INVESTIGATION ISN'T LIKELY TO BE WRAPPED UP UNTIL ABOUT THE END OF THIS MONTH SAY PEOPLE FAMILIAR WITH IT THE PROBE HAS EMPLOYED TWO FULLTIME LAWYERS AND FOUR PARTTIMERS FOR THOSE UNDER INVESTIGATION LEGAL BILLS ARE PILING UP INTO THE HUNDREDS OF THOUSANDS OF DOLLARS WHILE THE CONTRIBUTIONS TO THEIR LEGAL DEFENSE FUNDS HAVE DRIED UP ALONG WITH THE OLD NEWSPAPER CLIPPINGS KEEP IN MIND THAT THE PASSPORT INQUIRY RUN BY RESPECTED FORMER US ATTORNEY JOSEPH DIGENOVA MAY BE ONE OF THE MORE EFFICIENT INDEPENDENT COUNSEL PROBES OF RECENT YEARS AFTER ALL THE COUNSEL NAMED TO LOOK INTO CHARGES OF ABUSE IN THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DURING THE REAGAN YES REAGAN ADMINISTRATION HAS BEEN IN BUSINESS FOR FOUR YEARS AND AFTER 14 CONVICTIONS IS STILL RUNNING SO AS WHITEWATER SPECIAL COUNSEL ROBERT FISKE WARMS UP AND CONGRESS IS ABOUT TO REVIVE THE INDEPENDENT COUNSEL LAW AN OBVIOUS QUESTION ARISES ISN'T THERE A BETTER WAY TO HANDLE SCANDALS THE ANSWER IS YES SORT OF IT'S NOW CLEAR THAT THE LEGAL SYSTEM IS AN EXTREMELY BLUNT TOOL FOR GETTING TO THE BOTTOM OF POLITICALLY TINGED CHARGES ONCE A HIGHPROFILE FEDERAL INVESTIGATION GETS GOING IT'S LITERALLY IMPOSSIBLE TO STOP IT BEFORE A LOT OF TIME AND TAXPAYER DOLLARS ARE INVESTED YET IT'S ALSO ABSOLUTELY ESSENTIAL THAT THE AMERICAN JUSTICE SYSTEM STAND VISIBLY IN THE BACKGROUND OF THE POLITICAL WORLD IT'S THE ULTIMATE GUARANTOR OF CLEAN AND ACCOUNTABLE GOVERNMENT SO THE ISSUE IS HOW TO MAKE THE JUSTICE SYSTEM A TOOL FOR KEEPING GOVERNMENT CLEAN NOT A WEAPON FOR POLITICAL GAMESMANSHIP TWO STEPS WOULD HELP RESTORE THE BALANCE FIRST THE NEW LAW AUTHORIZING THE CREATION OF INDEPENDENT COUNSELS TO INVESTIGATE CHARGES OF EXECUTIVEBRANCH ABUSE CAN PUT SOME CLEAR LIMITS ON INVESTIGATIONS THE DEBATE OVER WHETHER TO RENEW THE LAW WHICH LAPSED IN 1992 HAS BEEN A CASE STUDY IN HYPOCRISY REPUBLICANS WHO HATED THE LAW WHEN THEY CONTROLLED THE WHITE HOUSE NOW WANT IT RENEWED DEMOCRATS WHO ALWAYS CRIED THAT INDEPENDENT COUNSELS ARE ESSENTIAL HAVE SOMEHOW LET 15 MONTHS PASS WITHOUT RENEWING THE LAW NOW THAT THEY CONTROL THE WHITE HOUSE BUT CONGRESS FINALLY SEEMS TO HAVE AGREED TO MOVE BOTH THE HOUSE AND SENATE HAVE PASSED VERSIONS OF A NEW INDEPENDENTCOUNSEL LAW AND CONFEREES ARE WORKING OUT DIFFERENCES THE BILLS PLACE SOME NEW LIMITS ON THE COST AND TENURE OF INDEPENDENT COUNSEL INVESTIGATIONS LAWMAKERS SHOULD LOOK LONG AND HARD TO MAKE SURE THOSE ARE SUFFICIENT SECOND AND MORE IMPORTANT IT'S TIME FOR EVERYONE INCLUDING CONGRESS AND THE PRESS TO THINK HARDER BEFORE HOWLING FOR THE PROSECUTORS INVOKING AN INDEPENDENTCOUNSEL INVESTIGATION CAN'T JUST BE A TACTIC FOR SIDESTEPPING A POLITICAL PROBLEM OR A CLEVER DEVICE FOR IMPUGNING A FOE THESE INVESTIGATIONS BRING INTO PLAY A BIG AND POWERFUL ARM OF THE GOVERNMENT OFTEN THERE ARE OTHER WAYS UNBRIDLED CONGRESSIONAL INQUIRIES CONVENTIONAL LEGAL CHANNELS VIGOROUS PRESS SCRUTINY TO SHINE THE DISINFECTING LIGHT OF OUTSIDE EXAMINATION THE PASSPORT CASE IS A GOOD ILLUSTRATION OF WHY INDEPENDENTCOUNSEL INVESTIGATIONS ALWAYS WILL BE CUMBERSOME THE PROBE HAS HAD JUST ONE OFFICIAL TARGET MS MULLINS A FORMER WHITE HOUSE AND STATE DEPARTMENT AIDE AND WAS LAUNCHED WITH THE CLEAR TASK OF DECIDING WHETHER THERE WERE VIOLATIONS OF THE PRIVACY ACT OR A SUBSEQUENT COVERUP ALL SIGNS SUGGEST MR DIGENOVA HAS TRIED HIS BEST TO MOVE EXPEDITIOUSLY AND HE HAS KEPT COSTS UNDER 1 MILLION ACCORDING TO ONE KNOWLEDGEABLE PERSON BUT DELAYS HAVE OCCURRED ANYWAY ANY INDEPENDENT COUNSEL NEEDS WEEKS OR MONTHS JUST TO GET HIS OPERATION UP AND RUNNING AND THE PASSPORT CASE HAS RUN SMACK INTO SOME STICKY LEGAL QUESTIONS OVER THE ADMISSIBILITY OF EVIDENCE QUESTIONS THAT JUDGES OFTEN TAKE THEIR OWN SWEET TIME SETTLING NOW IT'S LIKELY THAT MR DIGENOVA WILL DECIDE WITHIN A FEW WEEKS WHETHER TO PROSECUTE THERE'S A GOOD CHANCE HE WON'T PROSECUTE ANYBODY IN WHICH CASE HE'LL PREPARE A COURT REPORT IN THE END THE PASSPORT INVESTIGATION WAS WELL WORTH CONDUCTING IT'S TOO BAD IT COULDN'T BE CONDUCTED UNDER A SYSTEM THAT CONSUMED LESS TIME AND PRODUCED FEWER PAYMENTS TO LAWYERS 9404060125 940406 BUSINESS BRIEFS CANADIAN PACIFIC LTD AGREED IN PRINCIPLE TO SELL ITS CP EXPRESS & TRANSPORT TRUCKING UNIT TO A GROUP INCLUDING THE UNIT'S EMPLOYEES AND MANAGEMENT TERMS WEREN'T DISCLOSED AMERITECH SIGNED A FIVEYEAR AGREEMENT VALUED AT MORE THAN 22 MILLION TO HANDLE OPERATORASSISTED LOCAL AND TOLL CALLS FROM PAY TELEPHONES OWNED BY PEOPLES TELEPHONE CO MIAMI OLYMPIC STEEL INC ACQUIRED CERTAIN ASSETS OF BERGER INDUSTRIES INC'S MIDWEST DIVISION TERMS WEREN'T DISCLOSED CORNING INC'S METPATH INC SUBSIDIARY COMPLETED THE SALE OF ITS DAMON CLINICAL TESTING OPERATIONS IN CALIFORNIA TO PHYSICIANS CLINICAL LABORATORY INC SACRAMENTO CALIF FOR 51 MILLION IN CASH CONCURRENT COMPUTER CORP OCEANPORT NJ RECEIVED AN 113 MILLION ORDER FROM FINANCIALSERVICES PROVIDER BLOOMBERG LP FOR INPUT/OUTPUT PROCESSOR SUBSYSTEMS AND MEMORY UPGRADES ON ITS SERIES 3200 COMPUTER SYSTEMS 9404060124 940406 ENTERPRISE GOVERNMENT WATCH MERE SHADOW OF HEALTH REFORM LIGHTENS INSURANCE COSTS BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL JUST THE THREAT OF HEALTHCARE OVERHAUL HELPS SOME CUT INSURANCE COSTS BUSINESS OWNERS SAY THE PROSPECT THAT WASHINGTON WILL CHANGE THE HEALTHCARE SYSTEM IS HAVING AN OVERLOOKED EFFECT IT IS HELPING SMALL COMPANIES NEGOTIATE BETTER DEALS WITH THEIR INSURERS RIGHT NOW WE GOT VERY AGGRESSIVE WITH THE INSURANCE CARRIERS SAYS FRANK POSINSKI PRESIDENT OF CINCINNATI GEAR CO THE COMPANY NEGOTIATED WITH THREE INSURERS SIMULTANEOUSLY GETTING EACH INSURER TO MAKE PROPOSALS THAT INCLUDED CAPS ON THE RATE INCREASES AND A PARTIAL SELFINSURANCE PLAN AS A RESULT THE COMPANY EXPECTS TO CUT ITS INSURANCE COSTS BY 30 OR MORE OVER THOSE OF LAST YEAR WITH 315 WORKERS CINCINNATI GEAR MAKES MOTORS FOR SHIPS AND OTHER HEAVY EQUIPMENT THE SMALL COMPANY WAS SURPRISED TO FIND THREE SIZABLE INSURANCE CARRIERS WILLING TO BID FOR ITS BUSINESS ONE REASON THEY ANTICIPATE THAT CHANGE IS COMING IN THE MARKETPLACE SO IT'S ABSOLUTELY IN MY INTEREST THAT CONGRESS DOES SOMETHING MR POSINSKI SAYS RON BULLOCK PRESIDENT OF BISON GEAR CO IN SUBURBAN CHICAGO SAYS HE ALSO CUT HEALTHCARE COSTS BY AGGRESSIVELY NEGOTIATING BETTER RATES WITH INSURERS ONE FACTOR WAS THE INSURERS' CONCERN ABOUT HEALTHCARE LEGISLATION WE HAVE THE CLINTONS TO THANK FOR MAKING THIS A NATIONAL ISSUE HE SAYS HOLDING DOWN HEALTHINSURANCE COSTS FOR SMALL BUSINESSES IS A MAJOR FOCUS OF PROPOSED HEALTHCARE LEGISLATION WHICH WILL BE TAKEN UP NEXT BY BOTH THE HOUSE WAYS AND MEANS COMMITTEE AND THE HOUSE ENERGY AND COMMERCE COMMITTEE SOME SMALLBUSINESS OFFICIALS SAY THAT INSURERS MAY BE RESPONDING TO CHARGES THAT UNDER THE CURRENT SYSTEM COVERAGE FOR SMALL EMPLOYERS AND THEIR WORKERS IS TOO COSTLY AND TOO RESTRICTIVE I STRONGLY SUSPECT THAT INSURERS HAVE WISED UP AND WANT TO BE POSITIONED AS THE GOOD GUYS SAYS JOHN POLK HEAD OF CLEVELAND'S COUNCIL OF SMALLER ENTERPRISES WHICH NEGOTIATES HEALTHCARE PURCHASING FOR ITS MEMBERS AN OFFICIAL OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA MAINTAINS HOWEVER THAT PREMIUMS ON SMALLBUSINESS POLICIES ARE FALLING BECAUSE INSURANCE COMPANIES' EFFORTS TO CONTROL HEALTHCARE COSTS ARE PAYING OFF ENTREPRENEURS LOBBY FOR EASING BURDENSOME REGULATIONS AT A WASHINGTON MEETING PATRICK FITZGIBBONS A VICE PRESIDENT OF AMES RUBBER CO IN HAMBURG NJ READS FROM A THREEPAGE FEDERAL DEFINITION OF HAZARDOUS WASTE WHICH INCLUDES 17 REFERENCES TO OTHER RULES PAUL BURG CHAIRMAN OF SPECTRUM CHEMICAL MANUFACTURING CORP COMPLAINS THAT FEDERAL RIGHTTOKNOW RULES FORCE HIM TO LIST FOR LOCAL FIRE OFFICIALS EACH OF THE 20000 CHEMICAL PRODUCTS HE STOCKS IN WAREHOUSES INSTEAD OF LISTING ONLY THE VERY FLAMMABLE ONES THOSE SPEAKERS ARE AMONG SMALLBUSINESS EXECUTIVES WHO TOOK PART IN A RECENT GATHERING ORGANIZED BY THE SMALL BUSINESS ADMINISTRATION AS PART OF A NEW PUSH TO EASE REGULATION OF SMALL FIRMS TOP OFFICIALS OF THE ENVIRONMENTAL PROTECTION AGENCY THE INTERNAL REVENUE SERVICE AND SEVERAL OTHER FEDERAL AGENCIES LISTENED TO THE COMPLAINTS FEDERAL OFFICIALS GOT AN EARFUL CANDIDA AVERSANTI PRESIDENT OF GENERAL MAGNAPLATE CORP A LINDEN NJ METALFINISHING COMPANY SAID CLEAN WATER RULES SOMETIMES FORCE HER FIRM TO MAKE WATER LEAVING THE PLANT CLEANER THAN THE CITY WATER COMING INTO IT THE SBA IS SEEKING PUBLIC COMMENTS ON THE POSSIBILITY OF EASING REGULATIONS FOR FIVE INDUSTRIES CHEMICALS AND METALS FOOD PROCESSING TRANSPORTATION RESTAURANTS AND ENVIRONMENTAL BUSINESSES IT WILL MOVE ON TO OTHER INDUSTRIES LATER THE IRS HAS ESTABLISHED ITS OWN SMALLBUSINESS OMBUDSMAN TO WORK WITH EACH TASK FORCE SPEED UP THE STARTUP OF PERSONAL COMMUNICATIONS SERVICES FIRMS URGE SCORES OF SMALL COMMUNICATIONS COMPANIES FORM A LOBBYING COALITION TO SEEK CONGRESSIONAL HELP IN SPEEDING THE STARTUP OF THE PERSONAL COMMUNICATIONS SERVICES INDUSTRY THE COMPANIES ARE WAITING FOR THE FEDERAL COMMUNICATIONS COMMISSION TO START AUCTIONING OFF PIECES OF THE RADIO SPECTRUM WHICH THE AGENCY SAID CAN BE USED TO OFFER WHAT'S KNOWN AS PCS A NEW WAY TO SEND VOICE DATA AND VIDEO MESSAGES THE ENTREPRENEURS FEAR THEY'LL BE SQUEEZED OUT OF THE LUCRATIVE MARKET IF AUCTIONS AREN'T HELD SOON BECAUSE LARGE CELLULAR PHONE COMPANIES WILL REBUILD THEIR SYSTEMS WITH THE NEWER TECHNOLOGY THAT THE PCS COMPANIES PLAN TO USE THE LOBBYING COALITION INCLUDES AMONG OTHERS WASHINGTONBASED AMERICAN WIRELESS COMMUNICATIONS CORP LED BY WALTER THREADGILL PRESIDENT OF THE MINORITY BROADCAST INVESTMENT CORP AND THE SMALL BUSINESS PCS ASSOCIATION HEADED BY ROBERT KYLE PRESIDENT OF KYCOM INC IN PORTOLA VALLEY CALIF THE COMPANIES SAY THEY NEED THE HELP OF DEMOCRATIC REP EDWARD MARKEY OF MASSACHUSETTS CHAIRMAN OF THE TELECOMMUNICATIONS SUBCOMMITTEE OF THE HOUSE ENERGY AND COMMERCE COMMITTEE AND SEN DANIEL INOUYE A HAWAII DEMOCRAT WHO HEADS THE COMMUNICATIONS SUBCOMMITTEE FOR THE SENATE COMMERCE COMMITTEE BUT THE LAWMAKERS ARE STILL BUSY WITH MAJOR TELEPHONE DEREGULATION BILLS SENATE SMALL BUSINESS COMMITTEE CHAIRMAN DALE BUMPERS OF ARKANSAS DEMOCRATIC REP KWEISI MFUME OF MARYLAND CHAIRMAN OF THE CONGRESSIONAL BLACK CAUCUS AND SEN TED STEVENS REPUBLICAN OF ALASKA ALL HAVE URGED THE FCC TO MOVE AHEAD AND TO PROTECT THE INTERESTS OF SMALL AND MINORITYOWNED COMPANIES REP MFUME SETS HEARINGS FOR MAY ON THE ISSUE AND THE BROADER TOPIC OF DISCRIMINATION IN THE TELECOMMUNICATIONS INDUSTRY SMALL TALK AS OF THE END OF FEBRUARY THE SBA HAD APPROVED 38 MILLION IN LOANS TO AGENCIES PARTICIPATING IN ITS MICROLOAN PROGRAM WITH NONE OF THE BORROWERS IN DEFAULT THE AVERAGE LOAN TO EACH STARTUP BUSINESS WAS ABOUT 10000 THE REV JESSE JACKSON WRITES TO PRESIDENT CLINTON SEEKING HELP FOR MINORITY BANKERS WHO CHARGE THAT THE RESOLUTION TRUST CO IS IGNORING A CONGRESSIONAL MANDATE TO HELP THEM ACQUIRE FAILED THRIFTS IN MINORITY NEIGHBORHOODS 9404060123 940406 MARKETING & MEDIA BILL GATES WINS DEMANDS PENGUIN WINS HIS BOOK BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MICROSOFT INC FOUNDER BILL GATES IS GETTING WHAT HE WANTS FOR HIS BOOK ON THE INFORMATION SUPERHIGHWAY ALTHOUGH HE RUFFLED THE FEATHERS OF HALF THE PUBLISHERS HERE IN THE PROCESS YESTERDAY PENGUIN USA A DIVISION OF BRITAIN'S PEARSON PLC ANNOUNCED THAT IT WON THE HEATED COMPETITION TO PUBLISH MR GATES'S BOOK WHILE THE VALUE OF THE DEAL WASN'T DISCLOSED INSIDERS INSIST THE SOFTWARE GOLIATH GOT MORE THAN THE 25 MILLION ADVANCE HE STIPULATED PENGUIN SAID A HARDCOVER EDITION OF THE BOOK WILL BE RELEASED IN NOVEMBER UNDER ITS VIKING IMPRINT ALONG WITH AN AUDIO VERSION LATER PENGUIN WILL PUBLISH AN EDITION FOR HIGH SCHOOLERS AND ANOTHER FOR CHILDREN FOUR PUBLISHERS ARE SAID TO HAVE MADE OFFERS OTHERS SAY THEY SIMPLY WALKED AWAY BECAUSE THEY HAD NEVER SEEN SUCH AN ONEROUS LIST OF DEMANDS FROM AN AUTHOR THIS BABY WAS REALLY COVERED UP SAYS A MAJOR PUBLISHER THE BOOK'S OUTLINE WAS VERY SKETCHY AND NOBODY WAS ALLOWED TO TALK TO GATES MR GATES SAYS THE ELECTRONIC REVOLUTION WILL FOREVER CHANGE THE WAY WE BUY WORK LEARN AND SOCIALIZE AND HIS BOOK WILL PROVIDE ADVICE ON HOW TO BENEFIT FROM THOSE CHANGES THE BOOK WILL BE WRITTEN BY MR GATES WITH NATHAN MYHRVOLD SENIOR VICE PRESIDENT OF ADVANCED TECHNOLOGY AT MICROSOFT AND PULITZER PRIZEWINNING JOURNALIST PETER RINEARSON MESSRS GATES AND MYHRVOLD SAID THEY WILL GIVE THEIR PROCEEDS TO CHARITIES WHICH HAVEN'T YET BEEN NAMED MOST OF THE NEGOTIATIONS WITH PUBLISHERS WERE CONDUCTED BY JONATHAN LAZARUS A MICROSOFT EXECUTIVE WHO ADMITS THERE ARE SOME PEOPLE WHO ARE MAD AT US PUBLISHERS WERE UPSET NOT ONLY BECAUSE THEY COULDN'T SPEAK TO THE BOOK'S PRINCIPAL AUTHOR BUT ALSO BECAUSE MICROSOFT DEMANDED LARGE CONTROL IN ADDITION TO KEEPING FOREIGN LANGUAGE RIGHTS BIDDERS SAY MICROSOFT DEMANDED THAT PUBLISHERS PRINT AT LEAST 500000 COPIES IN THEIR FIRST RUN AND SPEND AT LEAST 125000 ON MARKETING LETTING MICROSOFT HELP SPEND IT THERE WERE ALSO RESTRICTIONS ON WHAT KIND OF PAPERBACK EDITIONS WOULD BE ALLOWED ONE PUBLISHER SAYS MICROSOFT INSISTED IT HAVE THE RIGHT IF MR GATES LATER REVISED THE MANUSCRIPT TO RESELL IT AS A NEW BOOK THEY ESSENTIALLY WANTED TO TAKE OUR COPYRIGHT PROTECTION AWAY THE PUBLISHER SAYS NONETHELESS PETER MAYER PENGUIN'S CHIEF EXECUTIVE OFFICER INSISTS THE BOOK WILL BE SUCCESSFUL MICROSOFT'S MR LAZARUS PROMISES PENGUIN WILL MAKE MONEY ON THIS BOOK EVEN SOME PUBLISHERS WHO LOST OUT DON'T DISAGREE THE BOOK COULD BE A CROSS BETWEEN FUTURE SHOCK' AND MEGATRENDS' SAYS JACK ROMANOS CONSUMER GROUP PRESIDENT FOR PARAMOUNT PUBLISHING 9404060122 940406 COMPTEK UNIT'S NAVY CONTRACT BUFFALO NY COMPTEK RESEARCH INC SAID ITS COMPTEK FEDERAL SYSTEMS INC UNIT WAS AWARDED A US NAVY CONTRACT OPTION VALUED AT ABOUT 63 MILLION THIS IS THE FINAL YEAR OF A FIVEYEAR COSTPLUSFIXEDFEE CONTRACT AWARDED TO THE COMPANY IN APRIL 1990 BY THE NAVAL SEA SYSTEMS COMMAND COMPTEK IS THE PRIME CONTRACTOR ON THE PROGRAM PROVIDING ENGINEERING SUPPORT TO NAVAL SEA SYSTEMS COMMAND FOR A RELIABILITY MAINTAINABILITY AND QUALITYASSESSMENT PROGRAM COMPTEK SUPPLIES ADVANCED ELECTRONICS AND DATACOMMUNICATION SYSTEMS TO GOVERNMENT AND INDUSTRY 9404060121 940406 WHO'S NEWS CEPHALON INC CEPHALON INC WEST CHESTER PA KEVIN E MOLEY WAS ELECTED A DIRECTOR OF THIS BIOTECHNOLOGY COMPANY INCREASING THE BOARD'S SIZE TO SEVEN MEMBERS MR MOLEY IS SENIOR VICE PRESIDENT OF PCS HEALTH SYSTEMS INC A UNIT OF MCKESSON CORP 9404060120 940406 EPA PROHIBITS WASTE BURNING BY SOME KILNS BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL THE ENVIRONMENTAL PROTECTION AGENCY IN A MOVE THAT COULD HELP SOME OPERATORS OF HAZARDOUSWASTE INCINERATORS SAID THAT CERTAIN RIVAL CEMENT KILNS SHOULDN'T BE BURNING SUCH WASTES THE DECISION BY THE EPA COMES TWO MONTHS AFTER AN INDUSTRY GROUP THE HAZARDOUS WASTE TREATMENT COUNCIL PETITIONED THE AGENCY TO PREVENT WASTE BURNING AT SIX KILNS AND TWO OTHER PLANTS THE EPA'S RULING WON'T IMMEDIATELY REDUCE THE NUMBER OF CEMENT KILNS BURNING HAZARDOUS WASTES BUT COULD HELP KEEP SUCH CAPACITY FROM GROWING OWNERS OF KILNS AND COMMERCIAL INCINERATORS WHICH OFFER DIFFERENT METHODS FOR BURNING HAZARDOUS WASTES ARE LOCKED IN A FIERCE BATTLE TO HANDLE A DECLINING VOLUME OF BUSINESS OVER TIME SOME KILNS COULD BE FORCED TO STOP BURNING WASTES WHICH ARE MIXED WITH FUELS AND THE HAZARDOUS WASTE TREATMENT COUNCIL EMBOLDENED BY EPA'S RESPONSE TO ITS PETITION SAID IT WOULD ASK THE AGENCY TO TAKE FURTHER STEPS TO LIMIT WHICH PLANTS CAN BURN WASTES WE'RE FEELING PRETTY GOOD ABOUT THIS SAID THE GROUP'S CHIEF RICHARD FORTUNA A SPOKESWOMAN FOR A KILNINDUSTRY GROUP MARTHA LINDAUER OF THE CEMENT KILN RECYCLING COALITION CALLED THE PETITION DESIGNED MORE TO LIMIT COMPETITION THAN TO DEAL WITH ANYTHING THAT'S ENVIRONMENTALLY WRONG COMMERCIAL HAZARDOUSWASTE INCINERATORS OPERATED BY SUCH COMPANIES AS WMX TECHNOLOGIES INC ROLLINS ENVIRONMENTAL SERVICES INC WESTINGHOUSE ELECTRIC CORP AND UNION PACIFIC CORP HAVE SEEN A STEEP DOWNTURN IN BUSINESS THE PAST TWO YEARS MANUFACTURING COMPANIES THAT GENERATE HAZARDOUS WASTES HAVE FOUND INCREASINGLY EFFECTIVE WAYS TO MINIMIZE THE AMOUNTS THEY CREATE AND CEMENT KILNS WHICH ARE BIG AND BURN VERY HOT ACCEPT MORE KINDS AND LARGER VOLUMES OF WASTES GETTING PAID TO BURN THE WASTES LOWERS KILNS' OVERALL FUEL COSTS EPA ADMINISTRATOR CAROL BROWNER NEARLY A YEAR AGO CALLED FOR TOUGHER REGULATION OF EMISSIONS FROM HAZARDOUSWASTE BURNING MATTHEW STRAUS AN EPA OFFICIAL SAID YESTERDAY THAT THE AGENCY WON'T HAVE ITS FINAL STRATEGY ON INCINERATION READY UNTIL LATE THIS YEAR THE EPA DECISIONS MR STRAUS SAID COVERED PLANTS THAT ALL FELT THEY HAD INTERIM APPROVAL TO BURN WASTES THOUGH SOME HAVEN'T ACTUALLY BEEN BURNING ANY THE PLANTS ARE IN MICHIGAN CALIFORNIA INDIANA AND LOUISIANA THE ONE PLANT THAT HAS BEEN BURNING WASTES THAT THE EPA SAID MUST NOW STOP IS NATIONAL CEMENT CO'S KILN IN LEBEC CALIF THE COMPANY HAS SAID IT WILL APPEAL THE AGENCY'S DECISION 9404060119 940406 MARKETING & MEDIA CABLE SUBSCRIBERS CAN USE OWN REMOTES FCC DECIDES WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION ADOPTED RULES REQUIRING CABLETELEVISION SYSTEMS TO LET CONSUMERS USE THEIR OWN REMOTECONTROL DEVICES TO CONTROL CABLETV BOXES IN ADDITION THE AGENCY'S NEW RULES BAR CABLETV COMPANIES FROM SCRAMBLING SIGNALS FOR CHANNELS CARRIED ON THE BASIC SERVICE TIER WHICH INCLUDES OVERTHEAIR TV CHANNELS BEYOND THAT THE AGENCY SAID IT IS CONSIDERING PROHIBITING CABLE COMPANIES FROM SCRAMBLING ALL SIGNALS CARRIED ON REGULATED TIERS OF SERVICE THAT WOULD INCLUDE ALL CABLE PROGRAMMING EXCEPT PREMIUM CHANNELS AND PAYPERVIEW SERVICES THE RULES CARRY OUT THE 1992 CABLE ACT AND ARE PART OF A PACKAGE AIMED AT ASSURING CONSUMERS THAT ELECTRONIC EQUIPMENT THEY BUY WILL BE COMPATIBLE WITH THEIR CABLETV SYSTEMS TO HELP CONSUMERS FIGURE OUT WHAT THEY NEED THE COMMISSION ORDERED CABLE OPERATORS TO SET UP CONSUMEREDUCATION PROGRAMS THAT WOULD SPOTLIGHT POSSIBLE PROBLEMS AND LET CONSUMERS KNOW THEY CAN BUY EQUIPMENT FROM SOURCES OTHER THAN THE CABLE COMPANY 9404060118 940406 TECHNOLOGY THERMO CARDIOSYSTEMS GETS EU CERTIFICATION FOR HEARTMATE DEVICE WOBURN MASS THERMO CARDIOSYSTEMS INC'S HEARTMATE DEVICE RECEIVED A EUROPEAN UNION QUALITY CONTROL CERTIFICATION ALLOWING THE PRODUCT TO BE SOLD THROUGHOUT EUROPE NEXT YEAR THE HEARTMATE LEFT VENTRICULARASSIST DEVICE DESIGNED TO HELP SEVERELY ILL CARDIAC PATIENTS AWAITING HEART TRANSPLANTS HAS ALREADY BEEN APPROVED FOR SALE BY SEVERAL EUROPEAN COUNTRIES INCLUDING BRITAIN FRANCE AND ITALY BUT STARTING JAN 1 1995 INDIVIDUAL COUNTRY APPROVALS WILL BE SUPERCEDED BY A EUROPEAN UNION QUALITY CONTROL STANDARD KNOWN AS A CONFORMITY MARK THAT IS THE CERTIFICATION RECEIVED BY THE HEARTMATE DEVICE THE COMPANY SAID IN DECEMBER 1993 A US FOOD AND DRUG ADMINISTRATION ADVISORY PANEL RECOMMENDED THE FDA APPROVE THE IMPLANTABLE AIRDRIVEN DEVICE FOR COMMERCIAL SALE IN THE US A FINAL DECISION IS NOT EXPECTED UNTIL MID1994 AT THE EARLIEST THE COMPANY SAID THERMO CARDIOSYSTEMS' NET INCOME FOR THE FOURTH QUARTER ENDED JAN 1 WAS 169000 OR ONE CENT A SHARE ON REVENUE OF 12 MILLION 9404060117 940406 USAIR LOWERS FARE STRUCTURE IN FLORIDA LINES BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL USAIR GROUP INC SEEKING TO PROTECT ITS KEY FLORIDA MARKET LAUNCHED A YEARROUND LOWERFARE STRUCTURE FOR TRAVEL BETWEEN NORTHEASTERN CITIES AND FLORIDA THE NEW PRICING ARRANGEMENT WHICH REDUCES TICKET PRICES AS MUCH AS 55 COVERS MORE THAN 2200 MARKETS EAST OF THE MISSISSIPPI USAIR SAID OTHER AIRLINES INCLUDING CONTINENTAL AIRLINES AND DELTA AIR LINES ANOTHER MAJOR PLAYER IN THE FLORIDA MARKET SAID THEY WOULD OFFER COMPETITIVE FARES USAIR SAID THE CHANGE TO A LONGTERM PRICING STRUCTURE SEEKS TO ENCOURAGE TRAVELERS TO PLAN AHEAD FOR THE PEAK TRAVEL SEASON RATHER THAN WAITING FOR SALES ROUNDTRIP FARES RANGE FROM 198 TO 378 DEPENDING ON MARKET AND TIME OF YEAR A PITTSBURGHTAMPA FLIGHT WHICH BEFORE RAN 298 ROUNDTRIP IS BEING SOLD FOR 198 NOW A ROUND TRIP BETWEEN MIAMI AND COLUMBUS OHIO WHICH HAD RUN 258 IS ALSO NOW 198 SOME FARE SPECIALISTS QUESTIONED WHETHER USAIR'S MOVE WOULD ALTER THE INCREASINGLY PREVALENT PRACTICE OF WAITING FOR A PROMOTION TO SNAP UP TICKETS IT'D BE NICE TO BOOK YOUR CHRISTMAS TRAVEL NOW SAID TOM PARSONS PUBLISHER OF BEST FARES MAGAZINE BUT WHAT USAIR HAS DONE IS TOLD US WHAT THE HIGHEST PRICE WILL BE IT'S JUST A STARTING POINT TO LOOK FOR A BETTER DEAL LATER HE SAID USAIR IS TRYING TO PREEMPT FURTHER COMPETITIVE INCURSIONS INTO FLORIDA FLIGHTS IN AND OUT FLORIDA AS WELL AS INTRASTATE COMPRISE ONETHIRD OF USAIR'S TOTAL SEATS FLOWN BUT RIVALS SUCH AS CONTINENTAL WITH ITS PEANUTS FARES AND VALUJET AIRLINES AN ATLANTABASED UPSTART HAVE RECENTLY BEEN TURNING UP THE HEAT IN THE BALMY TOURIST MARKET USAIR'S FLORIDA PRICING CHANGE IS TARGETED AT LEISURE TRAVELERS BECAUSE IT HAS RESTRICTIONS INCLUDING A 14DAY ADVANCE PURCHASE PERIOD AND A SATURDAY STAYOVER REQUIREMENT THE PERMANENT NATURE OF THE NEW FARES MIRRORS A BUSINESSTRAVEL PROGRAM USAIR LAUNCHED IN FEBRUARY THE LATEST PROGRAM WILL FURTHER PRESSURE HIGHCOST USAIR AND ITS UNIONS TO FIND WAYS TO CUT EXPENSES IN RECENT WEEKS USAIR HAS BEEN TRYING TO PERSUADE ITS UNIONS TO AGREE TO BIG WAGE AND WORKRULE CONCESSIONS THOSE TALKS BEGAN AFTER USAIR AMID GROWING COMPETITION FROM THE LOWERCOST AIRLINES PROJECTED A WIDER LOSS FOR 1994 IT TURNED TO THE UNIONS FOR HELP IN A PLAN TO SLASH ANNUAL OPERATING COSTS BY AS MUCH AS 9 OR ROUGHLY 608 MILLION 9404060116 940406 CLEAR CHANNEL COMMUNICATIONS SAN ANTONIO CLEAR CHANNEL COMMUNICATIONS INC A RADIO AND TELEVISION STATION OPERATOR SAID IT AGREED TO ACQUIRE KBXXFM IN HOUSTON FROM COOK INLET RADIO PARTNERS FOR ABOUT 21 MILLION 9404060115 940406 CALGENE INC'S NEW TOMATO DAVIS CALIF CALGENE INC SAID THE FOOD AND DRUG ADMINISTRATION RESCHEDULED A HEARING ON THE COMPANY'S FLAVR SAVR TOMATO TO BEGIN TODAY THROUGH FRIDAY IN HERNDON VA THE HEARING ORIGINALLY SCHEDULED FOR MARCH WAS DEFERRED WHEN THE REGULATORY AGENCY COULDN'T ASSEMBLE THE NECESSARY PANEL OF EXPERTS TO EVALUATE THE TOMATO WHICH IS GENETICALLY ENGINEERED TO RESIST ROTTING CALGENE'S PRODUCT APPLICATION GOT A BOOST THIS WEEK WHEN THE FDA'S CENTER FOR FOOD SAFETY AND APPLIED NUTRITION ISSUED A STATEMENT SAYING THAT THE FLAVR SAVR HASN'T BEEN SIGNIFICANTLY ALTERED WHEN COMPARED TO VARIETIES OF TOMATOES WITH A HISTORY OF SAFE USE 9404060114 940406 TREASURY PLANS SALE OF 244 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN ABOUT 145 BILLION ON THE FEDERAL DEBT WITH THE SALE MONDAY OF ABOUT 244 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2584 BILLION THE SALE AMOUNT IS DOWN FROM 252 BILLION SOLD AT THE PREVIOUS WEEKLY AUCTION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK BILLS MATURING JULY 14 CUSIP 912794M43 AND 26WEEK BILLS MATURING OCT 13 CUSIP 912794N67 ALL THE BILLS WILL BE DATED APRIL 14 9404060113 940406 HEALTH AN HMO TRIES TALKING MEMBERS INTO HEALTHY HABITS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL CAN A HEALTH MAINTENANCE ORGANIZATION LITERALLY NAG ITS MEMBERS INTO QUITTING SMOKING AND LOWERING THEIR CHOLESTEROL A BIG HMO IN MINNEAPOLIS BELIEVES IT CAN HEALTH PARTNERS WHICH HAS 600000 MEMBERS IS PROMISING THAT OVER THE NEXT FOUR YEARS IT WILL REDUCE THE NUMBER OF HEART ATTACKS OPENHEART OPERATIONS AND OTHER SERIOUS CORONARY EVENTS AMONG ITS MEMBERS BY 25 IT PLANS TO MAKE SIMILAR INROADS AGAINST DIABETES AND REPEAT TEENAGE PREGNANCIES IT EVEN AIMS TO LOWER THE INCIDENCE OF NEW DENTAL CAVITIES BY 50 SUCH OBJECTIVES ARE AMONG THE MOST AMBITIOUS PREVENTION TARGETS EVER ANNOUNCED BY AN HMO THE WHOLE HEALTHCARE ECONOMY IN THIS COUNTRY IS FOCUSED ON TREATING SICKNESS SAYS GEORGE C HALVORSON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HEALTH PARTNERS IT SHOULD BE DELIVERING HEALTH THE HEALTH PARTNERS APPROACH LAUNCHED IN FEBRUARY INVOLVES NOT ONLY THE EFFORTS OF ITS OWN DOCTORS NURSES NUTRITIONISTS AND COUNSELORS BUT ALSO OF AREA EMPLOYERS RESTAURANTS GROCERY STORES SCHOOLS AND HEALTH CLUBS ALL OF WHOM ARE ENCOURAGED TO REINFORCE HEALTHY HABITS AMONG THEIR CLIENTELE UNDER THE PROGRAM MEMBERS CONSIDERED AT RISK FOR CERTAIN DISEASES WILL BE CONTACTED AND REFERRED TO HEALTHCARE TEAMS WHICH WILL DEVISE APPROPRIATE TREATMENT PLANS AN EMPLOYERBACKED SURVEY LAST YEAR OF 7100 EMPLOYEES AND RETIREES MOST OF WHOM WERE HEALTH PARTNERS MEMBERS REVEALED FOR INSTANCE THAT 17 SMOKED 26 WERE OVERWEIGHT AND 62 EXERCISED FEWER THAN THREE TIMES A WEEK HMOS OF COURSE HAVE LONG ESPOUSED PREVENTION AND TYPICALLY OFFER SUCH SERVICES AS CHILDHOOD IMMUNIZATION PRENATAL CARE AND HEALTHPROMOTION CLASSES AS STANDARD BENEFITS BUT ONLY A HANDFUL OF US ORGANIZATIONS HAVE MADE MAJOR INVESTMENTS IN AGGRESSIVE PREVENTION EFFORTS AND MOST OF THEM ARE LARGE EMPLOYERS NOT HEALTH PLANS SAYS CARSON BEADLE PRESIDENT OF THE HEALTH PROJECT A NEW YORK GROUP THAT PROMOTES PREVENTION PROGRAMS ALTRUISM ISN'T NECESSARILY THE DRIVING FORCE BEHIND AN HMO'S HEALTHPROMOTION EFFORTS AN HMO'S BUSINESS IS GENERALLY IN PREPAID CONTRACTS IT GETS A SET PAYMENT PER MEMBER REGARDLESS OF THE MEMBER'S HEALTH OR SICKNESS THUS THE HEALTHIER A PLAN KEEPS ITS MEMBERS THE HIGHER ITS PROFITS MOREOVER A GOOD REPORT CARD SHOWING REDUCED ILLNESS AMONG MEMBERS IS LIKELY TO ATTRACT NEW BUSINESS WHEN YOU CAN SHOW THAT YOU CAN REDUCE MY LIKELIHOOD OF DYING THAT'S A MEANINGFUL OUTCOME SAYS JOHN LUDDEN MEDICAL DIRECTOR AT HARVARD COMMUNITY HEALTH PLAN AN HMO IN BOSTON BUT HOW TO KEEP MEMBERS HEALTHY IS ANOTHER STORY JUST PUTTING HEALTH BROCHURES IN A DOCTOR'S WAITING ROOM ISN'T SUFFICIENT MR HALVORSON SAYS TO REDUCE INCIDENCE OF DISEASE WE'RE GOING TO HAVE TO GET SOME CHANGES IN BEHAVIOR THE HMO PLANS A DETAILED HEALTHSTATUS SURVEY OF ITS MEMBERS LATER THIS YEAR TO HELP IDENTIFY THOSE CANDIDATES FOR PREVENTIVE SERVICES WHAT MR HALVORSON CALLS NAGGERS WILL TELEPHONE THOSE WHO ARE AT HIGH RISK OF DISEASE BUT WHO ARE RELUCTANT TO COME TO A CLINIC MEMBERS WITH DEBILITATING ADVANCED DISEASE WILL ENTER SPECIAL PROGRAMS AIMED AT CURBING THE PROGRESSION OF THEIR SYMPTOMS SOME SUCH PROGRAMS ARE ALREADY IN PLACE FOR INSTANCE THE HMO GIVES BATHROOM SCALES TO CONGESTIVE HEARTFAILURE PATIENTS TO HELP THEM MONITOR WEIGHT GAIN A SIGN OF FLUID BUILDUP IN THE LUNGS THAT LEADS TO FREQUENT HOSPITAL ADMISSIONS NURSES CALL HEART PATIENTS SEVERAL TIMES A WEEK AND IF NECESSARY ADJUST THEIR MEDICATIONS COUNSEL THEM TO AVOID SALT OR ASK THEM TO COME INTO THE CLINIC ALL TO CATCH ANY WEIGHT GAIN BEFORE IT BECOMES A SERIOUS PROBLEM IN A PILOT STUDY THE EFFORT INCREASED THE AVERAGE INTERVAL BETWEEN HOSPITAL ADMISSIONS TO 17 WEEKS FROM 6 WEEKS TO TARGET SMOKERS DAVID KLEVAN THE HEALTH PLAN'S SELFDESCRIBED SMOKING ZEALOT HELPED CRAFT A POLICY THAT TREATS SMOKING STATUS AS A VITAL SIGN LIKE BLOOD PRESSURE AND HEART RATE THE POLICY CALLS FOR A NURSE TO ASK EVERY PATIENT WHO COMES INTO A CLINIC ABOUT SMOKING AND FOR A DOCTOR SPECIFICALLY TO ADVISE ANY SMOKER TO QUIT AT ONE CLINIC EVERY PATIENT WAS ASKED ABOUT SMOKING AND THE SMOKING RATE WAS 85 AT ANOTHER WHERE EVERY PATIENT WASN'T ASKED THE REPORTED RATE WAS ONLY ABOUT 20 WE'RE GOOD AT ASKING PEOPLE WHO ARE NECK DEEP IN DISEASE IF THEY SMOKE DR KLEVAN SAYS BUT NOT PEOPLE WHO HAVE A SPRAINED ANKLE OR A COLD SMOKERS ARE DIRECTED INTO ONE OF VARIOUS PROGRAMS TO HELP THEM QUIT FOR DIABETES PATIENTS NURSES PHARMACISTS AND NUTRITIONISTS PROVIDE COUNSELING ON MEALPLANNING EXERCISE AND MEDICATION LEVELS YOU CAN ACTUALLY SIT DOWN AND ASK QUESTIONS AND NOBODY RUSHES YOU SAYS CLARE KIMMEL A 66YEAROLD RETIRED COURT WORKER WITH DIABETES WHO ONCE WAS HOSPITALIZED WITH AN IRREGULAR HEART BEAT HER BLOOD SUGAR IS NOW UNDER CONTROL AND HER HEART ARRHYTHMIA HASN'T RECURRED SINCE SHE LOST 45 POUNDS TWO YEARS AGO MARY NETZLOFF A 32YEAROLD MOTHER OF THREE WITH A FAMILY HISTORY OF DIABETES AND HEART PROBLEMS HAD A SIMILAR EXPERIENCE FOURTEEN MONTHS AGO SHE WAS 100 POUNDS OVERWEIGHT AND HAD FLUNKED PRACTICALLY EVERY COMMERCIAL WEIGHTLOSS PROGRAM DURING A PHYSICAL HER DOCTOR TOLD HER SHE'D HAVE A HEART ATTACK BY AGE 40 THEN HE REFERRED HER TO THE NUTRITION PROGRAM THE FIRST THING I REMEMBER IS THAT THE NUTRITIONIST WASN'T CRITICAL OF ME SHE SAYS INSTEAD OF MAKING HER SPEND 60 A WEEK ON WEIGHTPROGRAM FOOD THE NUTRITIONIST TAUGHT HER TO READ FOOD LABELS AND TO PLAN LOWFAT MEALS WITH OFFTHESHELF PRODUCTS WITH MODERATE EXERCISE SHE HAS LOST 50 POUNDS MORE THAN HALFWAY TO HER GOAL MEANWHILE HEALTH PARTNERS' OFFICIALS ARE ENLISTING PLAYERS OUTSIDE ITS CLINICS THEY PLAN TO HELP MANAGERS OF MORE THAN A DOZEN LOCAL CORPORATE CAFETERIAS OFFER HEALTHIER MENUS AND TO ASK FASTFOOD RESTAURANTS TO GIVE DISCOUNTS ON LOWFAT ITEMS NOT JUST FRENCH FRIES AND CHEESEBURGERS THE DECATHLON CLUB A POPULAR LUNCH SPOT IS AMONG A HANDFUL OF EATERIES THAT OFFER A MENU WITH HEALTHY ENTREES ANALYZED FOR CALORIES AND FAT CONTENT BY A HEALTH PARTNERS COMPUTER PROGRAM OVER A LUNCH AT THE DECATHLON CLUB THAT INCLUDES COUSCOUS AND A FATFREE RASPBERRY HOTFUDGE SUNDAE MR HALVORSON 47 YEARS OLD ACKNOWLEDGES THAT THE INITIATIVE IS PARTLY A PERSONAL CRUSADE HIS FATHER AND GRANDFATHER BOTH DIED OF HEART ATTACKS BY AGE 60 JUST A FEW MONTHS AGO HE WAS 50 POUNDS OVERWEIGHT WITH A HIGHRISK CHOLESTEROL READING OF 262 NOW HE'S LOST 30 POUNDS AND HIS CHOLESTEROL IS 212 AS ONE OF THE GUINEA PIGS HE SAYS I'M MOVING DOWN TO A LOWER LEVEL OF RISK 9404060111 940406 INSIDE TRACK AT WOOLWORTH INSIDERS SOLD BEFORE INQUIRY BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL SEVERAL SENIOR EXECUTIVES AT WOOLWORTH CORP SOLD LARGE PARCELS OF THEIR WOOLWORTH HOLDINGS IN THE MONTHS PRIOR TO LAST WEEK'S ANNOUNCEMENT OF AN INVESTIGATION BY THE COMPANY INTO ALLEGED ACCOUNTING IRREGULARITIES ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS FOUR INSIDERS INCLUDING WOOLWORTH'S CHIEF FINANCIAL OFFICER CHARLES YOUNG SOLD A COMBINED 26818 SHARES AT AN AVERAGE PRICE OF AROUND 24 EACH BETWEEN LATE OCTOBER AND MIDFEBRUARY FILINGS SHOW THE COMPANY DECLINES TO DISCUSS THE SALES MR YOUNG WAS ONE OF TWO TOP WOOLWORTH OFFICERS WHO VOLUNTARILY RELINQUISHED THEIR POSTS LAST WEEKEND AS THE NEW YORKBASED RETAILER CONDUCTS ITS INQUIRY INTO THE ALLEGED ACCOUNTING IRREGULARITIES BOTH HE AND WILLIAM LAVIN THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER VOLUNTEERED TO STEP DOWN ON A TEMPORARY BASIS WOOLWORTH SAID SUNDAY THE TWO HAVE DENIED ANY WRONGDOING MR LAVIN DID NOT REPORT ANY SALES OF HIS WOOLWORTH STOCK IN THE PAST SIX MONTHS THE NEGATIVE NEWS BUFFETING WOOLWORTH HAS TRIGGERED NEARLY A DOZEN SHAREHOLDER LAWSUITS WHICH AMONG OTHER THINGS ALLEGE THAT SENIOR MANAGEMENT ATTEMPTED TO INDUCE INVESTORS TO BUY STOCK AT ARTIFICIALLY INFLATED PRICES THE SUITS ALSO ALLEGE SUBSTANTIAL INSIDER SELLING BY COMPANY OFFICERS WHILE IN POSSESSION OF MATERIAL ADVERSE INFORMATION ABOUT WOOLWORTH ITS LACK OF INTERNAL CONTROLS AND ITS MARGINS SEC REGULATIONS PROHIBIT INSIDERS FROM TRADING WHILE IN POSSESSION OF MATERIAL NONPUBLIC INFORMATION NEWS OF THE INVESTIGATION AND THE STEPPING ASIDE OF MESSRS LAVIN AND YOUNG HAS SENT WOOLWORTH STOCK SHARPLY LOWER ON MONDAY IT FELL 2125 A SHARE OR 14 TO 13 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IN A BROADLY LOWER MARKET BUT YESTERDAY AMID A MAJOR MARKET RALLY IT ROSE 175 OR 13 TO 1475 MR YOUNG ACCORDING TO SEC DOCUMENTS SOLD 12000 SHARES OR 43 OF HIS DIRECT HOLDINGS ON NOV 23 AT 2250 EACH THE DISPOSAL WAS HIS LARGEST EVER ON RECORD MR YOUNG COULDN'T BE REACHED FOR COMMENT YESTERDAY OTHER SELLERS ACCORDING TO THE SEC FILINGS INCLUDED FRANCES TRACHTER VICE PRESIDENT FOR CORPORATE COMMUNICATIONS WHO SOLD 3000 SHARES OR NEARLY HALF HER STAKE FOR 2425 EACH ON FEB 10 THE SALE WAS HER LARGEST EVER ANOTHER VICE PRESIDENT HENRY MINER UNLOADED 9318 SHARES OR 30 OF HIS HOLDINGS AT AN AVERAGE OF 2550 BETWEEN JAN 19 AND 21 MR MINER'S SALES WERE HIS LARGEST SINCE 1991 CHARLES GRAY VICE PRESIDENT SOLD 2500 SHARES OR 15 OF HIS STAKE FOR 2288 APIECE ON OCT 26 THAT SALE FOLLOWED A DISPOSAL OF 3000 SHARES IN JULY AT 2579 MS TRACHTER SAID THE COMPANY AND THE INDIVIDUAL SELLERS WOULD HAVE NO COMMENT THOSE SALES ARE HIGHLIGHTED IN A LAWSUIT FILED ON BEHALF OF TWO SHAREHOLDERS BY THE NEW YORK LAW FIRM OF WOLF POPPER ROSS WOLF & JONES THE SUIT ALSO SAYS THE COMPANY'S FORMER CHAIRMAN AND CHIEF EXECUTIVE HAROLD SELLS SOLD 22917 SHARES IN EARLY JUNE AT 2962 EACH A SALE CONFIRMED BY SEC DOCUMENTS MR SELLS COULDN'T BE REACHED FOR COMMENT ON THE SALE WHILE THE COMPANY HASN'T COMMENTED ON THE INQUIRY PEOPLE CLOSE TO THE BOARD SAID THAT MESSRS LAVIN AND YOUNG ALONG WITH SOME OTHER TOP EXECUTIVES HAVE BEEN UNDER INVESTIGATION BY A BOARDAPPOINTED SPECIAL COMMITTEE THE COMMITTEE IS FOCUSING ON WHETHER WOOLWORTH EXECUTIVES KNOWINGLY REPORTED INACCURATE GROSS PROFIT MARGINS IN AT LEAST THREE OF THE COMPANY'S QUARTERLY REPORTS DURING THE FISCAL YEAR ENDED JAN 29 GROSS MARGIN IS THE DIFFERENCE BETWEEN WHAT THE RETAILER SOLD MERCHANDISE FOR AND WHAT IT ACTUALLY PAID FOR IT AND IS AN IMPORTANT COMPONENT IN CALCULATING A COMPANY'S NET INCOME WOOLWORTH HAS PROVIDED FEW DETAILS ABOUT THE ALLEGED IRREGULARITIES EXCEPT TO SAY THEY WILL CAUSE THE RETAILER TO RESTATE ITS QUARTERLY RESULTS FOR THE LAST FISCAL YEAR REFLECTING THE CORRECTION OF GROSS MARGINS THE QUARTERS AFFECTED ARE THE FIRST SECOND AND THIRD OF THE LAST FISCAL YEAR PEOPLE CLOSE TO THE BOARD HAVE SAID THE INACCURACIES WERE CORRECTED DURING THE FOURTH QUARTER THE COMPANY HOWEVER DECLINES TO RESPOND TO ALLEGATIONS MADE IN THE VARIOUS SHAREHOLDER LAWSUITS WHICH WERE FILED IN FEDERAL COURT IN MANHATTAN LATE LAST WEEK AND THIS WEEK THE SUITS ACCORDING TO STEPHEN D OESTREICH A SENIOR PARTNER WITH WOLF POPPER SEEK UNSPECIFIED DAMAGES AND COMPENSATION ON BEHALF OF PURCHASERS OF WOOLWORTH STOCK DURING THE PERIOD IN WHICH THE STOCK WAS ALLEGEDLY ARTIFICIALLY INFLATED AS A RESULT OF THE ALLEGED FALSE AND MISLEADING FINANCIAL INFORMATION ISSUED BY THE COMPANY THE SUITS ARE EXPECTED TO BE CONSOLIDATED ADDS MR OESTREICH THE PERIOD OF CONCERN STRETCHES FROM FEB 10 1993 THROUGH MARCH 29 1994 BOARD MEMBERS SAY THEY ARE MYSTIFIED ABOUT WHY EXECUTIVES WOULD KNOWINGLY SUBMIT OR APPROVE INACCURATE GROSS MARGINS NUMBERS SINCE THEY HAVE NO CONNECTION TO EXECUTIVES' COMPENSATION STOCKBUYING PLANS OR ANY OTHER INCENTIVES EXECUTIVES CAN EARN CASH BONUSES BUT ONLY BASED ON PRETAX PROFIT GOALS DETERMINED FROM YEAREND AUDITED RESULTS THE ALLEGED IRREGULARITIES CAME AMID EFFORTS BY THE COMPANY TO PARE AWAY UNPROFITABLE BUSINESSES THE COMPANY HAS BEEN FORCED TO LIQUIDATE MANY STORES AND HAS TAKEN LOSSES REFLECTING MARKDOWNS A PROCESS SOME BOARD MEMBERS BELIEVE MAY HAVE CONTRIBUTED TO REPORTING INACCURATE GROSS MARGINS ANALYSTS WHO FOLLOW THE STOCK HAVE BEEN DISCOURAGED BY THE WAVE OF DISAPPOINTING NEWS AND SOME SUSPECT THAT THE COMPANY'S INQUIRY WILL WIDEN TO INCLUDE THE QUESTION OF INVENTORY VALUATION MR FEINER HAS LOWERED HIS FISCAL 1994 EARNINGS PROJECTION TO 140 A SHARE FROM 150 AND HIS FISCAL 1995 ESTIMATE TO 2 FROM 215 HE THINKS THAT THE STOCK TRADING AT AROUND 10 TIMES HIS 1994 ESTIMATE OF 140 IS FAIRLY VALUED AND THAT THEREFORE IT WILL NOT LIKELY OUTPERFORM THE MARKET ANYTIME SOON UNTIL THE ISSUES REGARDING ACCOUNTING IRREGULARITIES BECOME MORE CLEAR INVESTORS SHOULD MAINTAIN THE PRESENT POSITIONS IN THE STOCK HE RECOMMENDS PATRICK M REILLY CONTRIBUTED TO THIS ARTICLE 9404060109 940406 HARSCO APPOINTS FINANCE CHIEF CAMP HILL PA HARSCO CORP NAMED LEONARD A CAMPANARO SENIOR VICE PRESIDENT OF FINANCE TO THE ADDITIONAL POST OF CHIEF FINANCIAL OFFICER HE HAD BEEN PERFORMING THE DUTIES OF FINANCE CHIEF BUT DIDN'T HOLD THE TITLE SAID A SPOKESWOMAN FOR THE COMPANY MR CAMPANARO 45 YEARS OLD ALSO WAS NAMED TO SERVE ON THE NEWLY FORMED SENIOR MANAGEMENT COMMITTEE OF THIS DIVERSIFIED INDUSTRIAL MANUFACTURING AND SERVICE CONCERN HARSCO ASSIGNED THREE OTHER EXECUTIVES TO NEW JOBS AND TO THE NEW COMMITTEE PAUL C COPPOCK 43 WAS NAMED SENIOR VICE PRESIDENT GENERAL COUNSEL SECRETARY AND CHIEF ADMINISTRATIVE OFFICER A NEW POST WILLIAM D ETZWEILER 58 WAS NAMED SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF COMMERCIAL AND INDUSTRIAL PRODUCTS BARRETT W TAUSSIG 54 WAS NAMED SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF DEFENSE 9404060108 940406 TUESDAY'S MARKETS STOCKS BONDS LEAP BUT ANALYSTS ARE CAUTIOUS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK AND BOND PRICES SOARED TREATING INVESTORS TO A DELICIOUS RESPITE FROM SEVERAL SOUR WEEKS OF DECLINES THE DOLLAR SURGED THE DOW JONES INDUSTRIAL AVERAGE ROCKETED 8206 POINTS OR 23 TO 367541 IT WAS THE LARGEST SINGLEDAY ADVANCE SINCE DEC 23 1991 WHEN THE AVERAGE CLIMBED 8810 POINTS SURGING BOND PRICES HELPED UNDERPIN THE STOCK MARKET'S ADVANCE THE TREASURY'S BENCHMARK 30YEAR BOND CLIMBED MORE THAN 1 5/8 POINTS OR MORE THAN 1625 FOR EACH 1000 FACE AMOUNT THE YIELD FELL TO 724 FROM 740 MONDAY WITH THE INDUSTRIALS CLIMBING MORE THAN 50 POINTS IN THE OPENING MINUTES OF TRADING THE NEW YORK STOCK EXCHANGE INVOKED ITS PROGRAMTRADING COLLAR THE COLLAR IS IMPOSED WHEN THE BLUECHIP INDEX MOVES 50 POINTS IN EITHER DIRECTION FROM THE PREVIOUS DAY'S CLOSE IT MAY HAVE SLOWED PROGRAM TRADING BUT DIDN'T STOP THE DOW FROM POWERING HIGHER THROUGH THE DAY THE LAST TIME THE COLLAR WAS IMPLEMENTED ON A 50POINT GAIN WAS IN MAY 1993 STANDARD & POOR'S 500STOCK INDEX JUMPED 937 OR 21 TO 44829 AND THE NASDAQ COMPOSITE INDEX LED BY A STRONG REBOUND IN TECHNOLOGY ISSUES SOARED 2354 OR 32 TO 75095 THOUGH THE FINANCIAL MARKETS PERKED UP SPLENDIDLY MOST ANALYSTS RESISTED READING TOO MUCH INTO A SINGLE DAY'S PERFORMANCE BOTH THE STOCK AND BOND MARKETS HAD POSTED SUCH DEEP DECLINES RECENTLY THAT A REBOUND WAS INEVITABLE THEY SAID NONETHELESS THE STOCK MARKET'S SURGE WAS NOTHING LESS THAN STUNNING PRICES ROSE ACROSS THE BOARD AS BARGAINHUNTERS SWEPT IN AMID RISING BOND PRICES ECONOMICALLY SENSITIVE STOCKS LED THE ADVANCES WITH SOFTWARE AUTO AND APPAREL RETAILER STOCKS TURNING IN SOME OF THE MOST IMPRESSIVE GAINS ADVANCING ISSUES SWAMPED DECLINERS BY A SEVENTOONE MARGIN THE MESSAGE IS THAT THE GROWTHOFEARNINGS STORY IS STILL INTACT IN INVESTORS' MINDS SAID TRACY HERRICK CHIEF INVESTMENT STRATEGIST AT JEFFERIES & CO A LOS ANGELES INVESTMENT COMPANY ONCE THE CLOUD OF INTEREST RATES IS PULLED AWAY THERE'S STILL A LOT OF POWER IN THE MARKET BUT EAGER AS THEY ARE TO DECLARE THE END OF THE STOCKMARKET CORRECTION MOST ANALYSTS ARE RESERVING JUDGMENT FOR THE MOMENT RAO CHALASANI CHIEF INVESTMENT STRATEGIST AT KEMPER SECURITIES SAID HE NEEDS TO SEE A FEW MORE DAYS OF HEALTHY ADVANCES AND A STABLE BOND MARKET BEFORE HE'S CONVINCED THE CORRECTION IS OVER HOWEVER KEMPER SECURITIES RECOMMENDED MONDAY THAT INVESTORS BOOST THEIR STOCK HOLDINGS TO 55 OF THEIR PORTFOLIOS FROM 50 MR CHALASANI SAID THE RECENT SLUMP PROVIDED AN OPPORTUNITY TO BUY STOCKS AT REDUCED PRICES BEFORE POSITIVE CORPORATE EARNINGS GIVE THE MARKET A LIFT IF YESTERDAY'S ADVANCE DOES HERALD A TURNING POINT IN THE MARKET'S FORTUNES THE CORRECTION WILL GO DOWN IN HISTORY AS ABSOLUTELY TYPICAL IN THE PAST 50 YEARS THE AVERAGE STOCKMARKET CORRECTION HAS TAKEN THE DOW INDUSTRIALS DOWN 95 AND LASTED A LITTLE MORE THAN TWO MONTHS ACCORDING TO NED DAVIS RESEARCH IN NOKOMIS FLA THROUGH MONDAY THE DOW HAD SLUMPED 97 IN A LITTLE MORE THAN TWO MONTHS ANALYSTS ATTRIBUTED SOME OF THE BOND MARKET'S GAINS TO INVESTORS' BUYING TREASURYS TO COVER SHORT POSITIONS TAKEN EARLIER IN ANTICIPATION OF A FURTHER DROP IN PRICES ALSO BOND TRADERS WERE ENCOURAGED BY A COMMERCE DEPARTMENT REPORT SHOWING THAT THE INDEX OF LEADING ECONOMIC INDICATORS SLIPPED SLIGHTLY IN FEBRUARY BUT SOME ANALYSTS WERE SKEPTICAL A FULLFLEDGED BOND MARKET RALLY WAS UNDER WAY DONALD FINE CHIEF MARKET ANALYST WITH CHASE SECURITIES SAID INVESTORS REMAIN CONCERNED ABOUT INFLATIONARY PRESSURES ESPECIALLY IN LIGHT OF RECENT STRONG ECONOMIC REPORTS TO EASE INFLATION WORRIES THE FEDERAL RESERVE MUST FURTHER TIGHTEN ECONOMIC POLICY AND BOOST THE FEDERALFUNDS RATE TO 4 FROM 35 HE SAID OVERSEAS EUROPE'S BIG STOCK MARKETS WERE DRIVEN HIGHER BY THE US RALLY GERMAN SHARES WERE UP 16 BRITISH STOCKS 1 AND FRENCH SHARES 09 IN TOKYO STOCKS SHOT UP 23 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 110 TO 11157 IN MAJOR MARKET ACTION STOCK PRICES JUMPED VOLUME TOTALED 366 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 2152 ISSUES ROSE AND 315 FELL BOND PRICES ROSE THE TREASURY'S 10YEAR ISSUE GAINED NEARLY 1 3/8 POINTS OR MORE THAN 13375 FOR EACH 1000 FACE AMOUNT TO YIELD 692 THE DOLLAR SURGED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17140 MARKS AND 10435 YEN COMPARED WITH 16973 MARKS AND 10320 YEN MONDAY 9404060107 940406 DIVIDEND NEWS PACIFIC ENTERPRISES PACIFIC ENTERPRISES LOS ANGELES RAISED ITS QUARTERLY DIVIDEND BY 67 TO 32 CENTS FROM 30 CENTS PAYABLE MAY 16 TO SHAREHOLDERS OF RECORD APRIL 20 THE MOVE BY THE PARENT COMPANY OF SOUTHERN CALIFORNIA GAS CO IS THE FIRST INCREASE SINCE THE COMPANY RESUMED DIVIDEND PAYMENTS LAST SUMMER IN 1991 A MOREDIVERSIFIED PACIFIC ENTERPRISES CUT ITS QUARTERLY DIVIDEND IN HALF TO 44 CENTS FROM 87 CENTS IT CEASED ALL DIVIDEND PAYMENTS IN FEBRUARY 1992 THEN RESUMED THEM AT THE 30CENT RATE IN AUGUST 1993 AFTER SELLING OFF DRUGSTORE AND OILEXPLORATION UNITS 9404060106 940406 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA'S GUANGDONG PROVINCE PLANS TO BUY AS MUCH AS 1 BILLION OF CELLULAR TELEPHONE EQUIPMENT BY THE END OF 1995 THE GOVERNMENT OF THE SOUTHERN PROVINCE WHERE 250000 CELLULARPHONE LINES ARE IN OPERATION WANTS TO ADD 200000 THIS YEAR NATIONALLY CHINA HAS ABOUT 700000 CELLULAR LINES IN USE OR ON ORDER PLANNED PURCHASES INCLUDE SWITCHING AND TRANSMISSION EQUIPMENT HANDSETS AND OTHER HARDWARE FOR CUSTOMERS THE SPENDING SPLURGE REFLECTS THE RISING PROSPERITY OF THE FASTGROWING PROVINCE WHICH IS THE SIZE OF FRANCE AND HAS A POPULATION OF 66 MILLION GUANGDONG NOW HAS ABOUT FIVE MILLION TELEPHONE LINES INCLUDING CELLULAR PHONES A PENETRATION THAT IS ABOUT DOUBLE THE NATIONAL AVERAGE PERCAPITA INCOME IN THE PROVINCE IS 460 A YEAR THOUGH BUYING A CELLULAR HANDSET AND HOOKING UP TO THE PROVINCIAL PHONE NETWORK COSTS BETWEEN 1150 AND 2300 CELLULAR PHONES ARE UBIQUITOUS IRAN'S CABINET BANNED SATELLITE DISHES DECLARING THAT THE TELEVISION PROGRAMS THEY RECEIVE INFRINGE ON THE NATIONAL AND RELIGIOUS CULTURES AND ORDERED THE SEIZURE WITHIN TWO MONTHS OF ANY UNAUTHORIZED EQUIPMENT IN THE PAST TWO YEARS THOUSANDS OF DISHES HAVE BEEN INSTALLED GIVING IRANIANS UNFILTERED ACCESS TO DOZENS OF FOREIGN TV CHANNELS AS AN ALTERNATIVE TO STATE TV LAST MONTH 400 DISHES WERE BEING SET UP DAILY IN TEHRAN THE CAPITAL DESPITE AUTHORITIES' WARNINGS THAT FOREIGN PROGRAMS WERE PART OF A WESTERN CULTURAL OFFENSIVE TO CORRUPT MUSLIM IRANIANS WORLD TRADE GROWTH SLOWED LAST YEAR THE GENERAL AGREEMENT ON TARIFFS AND TRADE SAID THE VOLUME OF MERCHANDISE EXPORTS INCREASED 25 COMPARED WITH 45 GROWTH A YEAR EARLIER GATT CITED IMPROVED PROSPECTS FOR ACCELERATED GROWTH THIS YEAR PERHAPS EXCEEDING 5 UNLESS ECONOMIC RECOVERY ELUDES WESTERN EUROPE AND JAPAN IN WHICH CASE THE TRADE LEVEL COULD BE LITTLE CHANGED IN TERMS OF VALUE WORLD MERCHANDISE EXPORTS IN 1993 FELL 19 TO 358 TRILLION FROM 1992 WHEN THEY JUMPED 65 FROM A YEAR EARLIER PRIME MINISTER LEE HOI CHANG APOLOGIZED FOR WHAT HE SAID WAS SOUTH KOREA'S MISHANDLING OF WORLD TRADE TALKS IN WHICH IT AGREED TO OPEN ITS FARM MARKET WIDER TO FOREIGN PRODUCTS SUCH AS RICE A DAY EARLIER THE AGRICULTURE MINISTER WAS DISMISSED IN RESPONSE TO PUBLIC ANGER ABOUT CONCESSIONS TO FOREIGN DEMANDS ON AGRICULTURE DESPITE NATIONWIDE PROTESTS THE GOVERNMENT HAS HELD TO ITS VOW TO THE WORLD TRADE BODY IN A SCHEDULE OF MARKETOPENING MEASURES SUBMITTED LAST MONTH SOUTH KOREA GRANTED MORE CONCESSIONS THAN IT PROMISED LAST YEAR VIETNAM OPENED ITS FOURTH INTERNATIONAL TRADE FAIR THE FIRST SINCE THE END OF THE 19YEAR US ECONOMIC EMBARGO LAST YEAR A RECORD 200 FOREIGN AND 150 VIETNAMESE COMPANIES ARE PARTICIPATING ATTRACTED BY THE MARKET OF MORE THAN 70 MILLION PEOPLE AND THE COMMUNIST GOVERNMENT'S FREEMARKET EMBRACE FAIRGOERS RESPONDED ENTHUSIASTICALLY TO PRODUCTS AT EXHIBITS OF TWO US GIANTS COCACOLA CO AND CHRYSLER CORP SAMPLING SODA AND STUDYING AUTO ENGINES AND INTERIORS MORE THAN 10000 TOBACCO GROWERS IN GREECE BLOCKED NORTHERN RAIL AND HIGHWAY TRAFFIC INCLUDING HUNDREDS OF TRUCKS HAULING PERISHABLES TO PROTEST LOW SUBSIDIES FROM THE EUROPEAN UNION THE GROWERS WHO BEGAN THE DEMONSTRATIONS LATE LAST WEEK LIFTED SOME ROADBLOCKS AFTER THE GOVERNMENT SAID IT WOULD EXAMINE WAYS TO INCREASE TOBACCO PRICES PRODUCERS COMPLAIN THAT THE REDUCED SUBSIDIES AND FALLING MARKET PRICES HAVE BEEN DRIVING THEM OUT OF BUSINESS THE EU IS TO REVIEW TOBACCO SUBSIDIES THIS MONTH WHILE MOST ASIAN ECONOMIES ARE SOARING ROOM RATES AND OCCUPANCY LEVELS AT TOPRATED HOTELS IN MANY CITIES ARE HEADING DOWN BECAUSE OF MORE NEW ROOMS AND COMPETITION FROM MIDRANGE HOTELS SINGAPOREBASED CONSULTANTS HORWATH ASIA PACIFIC PREDICTED THE AVERAGE OCCUPANCY AT BANGKOK'S FOURSTAR AND FIVESTAR HOTELS WILL SLUMP TO 43 BY 1996 FROM 53 LAST YEAR AND 60 IN 1991 THE AVERAGE DAILY ROOM RATE FELL TO 95 LAST YEAR FROM 112 IN 1991 AND IS SEEN ERODING FURTHER AT TOKYO'S TOP HOTELS RATES SLIPPED TO 234 IN 1993 FROM 252 IN 1992 BUT OCCUPANCY STILL FELL TO 67 FROM 70 AND COULD SLIDE BY 1997 TO 55 A TWODECADE LOW AS SUPPLY EXPANDS 21 FROM LAST YEAR PREDICTIONS ARE GLOOMY FOR JAKARTA AND KUALA LUMPUR WITH SUPPLY EXPECTED TO SOAR AND A BIT BRIGHTER FOR MANILA TAIPEI SINGAPORE AND INDONESIAN AND THAI RESORTS BUT THE OUTLOOK IS DOWNRIGHT CHEERY FOR HIGHEND HOSTELRIES IN SHANGHAI WHERE THE ROOM SUPPLY IS TIGHT AND RATES JUMPED TO 99 LAST YEAR FROM 72 A YEAR EARLIER AS OCCUPANCY CLIMBED TO ALMOST 80 AND IN HONG KONG WHERE THE NUMBER OF ALREADY JAMMED ROOMS COULD SHRINK AS DEVELOPERS RAZE HOTELS TO BUILD OFFICE TOWERS THE CENTRAL ITALIAN TOWN OF AREZZO IN A DRIVE TO HELP KEEP ITS SIDEWALKS CLEAN BOUGHT 2000 PLASTIC PANTS FOR DOGS THE DIAPERS WILL BE AVAILABLE FREE THROUGH PHARMACIES MEXICO AND COSTA RICA SIGNED A FREETRADE AGREEMENT TO TAKE EFFECT JAN 1 THE TREATY PROVIDES FOR 92 OF ALL GOODS AND SERVICES TO TRADE FREELY BETWEEN THE TWO COUNTRIES WITHIN FIVE YEARS RISING TO 99 IN 10 YEARS 9404060105 940406 WHO'S NEWS SMITH BARNEY CONTINUES TALENT RAID OF MORGAN STANLEY HIRING 2 VETERANS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMITH BARNEY SHEARSON CONTINUED ITS TALENT RAID OF MORGAN STANLEY GROUP WITH THE HIRING OF TWO VETERAN MORGAN STANLEY MANAGING DIRECTORS SMITH BARNEY THE BROKERAGE UNIT OF TRAVELERS INC IS EXPECTED TO ANNOUNCE TODAY THAT ROBERT A JEFFE HEAD OF MORGAN'S GLOBAL NATURALRESOURCES GROUP AND THOMAS K BARBER ITS HEAD BANKER IN CANADA HAVE JOINED SMITH BARNEY AS MANAGING DIRECTORS THEIR DEPARTURES BRING TO ABOUT 15 THE NUMBER OF MORGAN STANLEY INVESTMENT BANKERS WHO HAVE FOLLOWED FORMER MORGAN STANLEY PRESIDENT ROBERT GREENHILL TO SMITH BARNEY'S INVESTMENTBANKING OPERATION IN THE LAST NINE MONTHS AT SMITH BARNEY MR JEFFE 43 YEARS OLD WILL HEAD INVESTMENT BANKING FOR THE ENERGY AND UTILITIES INDUSTRIES AND WILL OVERSEE DEVELOPMENT OF SMITH BARNEY'S EUROPEAN INVESTMENTBANKING ACTIVITIES HIS DUTIES DURING HIS 20 YEARS AT MORGAN STANLEY INCLUDED OVERSEEING ALL INVESTMENT BANKING AND MERGER ACTIVITIES FOR THE OIL AND GAS MINING AND CHEMICAL INDUSTRIES MR BARBER 38 WILL BE RESPONSIBLE FOR INVESTMENT BANKING FOR LARGECAPITALIZATION INDUSTRIAL COMPANIES FORMERLY BASED IN TORONTO HE WILL MOVE TO NEW YORK BETWEEN THEM THE TWO HAVE SERVED AS BANKERS ON DEALS FOR SUCH CLIENTS AS PHILLIPS PETROLEUM CO AMOCO CORP AND TRANSCANADA PIPELINES LTD I VIEW THIS AS AN OUTSTANDING OPPORTUNITY TO JOIN A RAPIDLY GROWING INVESTMENTBANKING FIRM THAT HAS GREAT LEADERSHIP AND OUTSTANDING GROWTH PROSPECTS SAID MR JEFFE WALL STREET EXECUTIVE RECRUITERS REPORT THAT SMITH BARNEY HAS BEEN OFFERING POTENTIAL HIRES HUGE SIGNING BONUSES UPFRONT AND TWOYEAR SALARY GUARANTEES MR GREENHILL'S 1993 COMPENSATION FOR EXAMPLE WAS 239 MILLION IN SALARY BONUS AND RESTRICTED STOCK ACCORDING TO TRAVELERS' PROXY STATEMENT MR JEFFE SAID COMPENSATION REALLY WASN'T THE DRIVING FORCE IN HIS DECISION TO LEAVE MORGAN STANLEY MR JEFFE WILL REPORT TO MR GREENHILL NOW SMITH BARNEY'S CHAIRMAN ON CORPORATE STRATEGY AND TO ROBERT LESSIN SMITH BARNEY'S HEAD OF INVESTMENT BANKING ON CORPORATEFINANCE ISSUES LAST JUNE TRAVELERS CHAIRMAN SANDY WEILL HIRED MR GREENHILL A MERGERS SUPERSTAR AFTER MR GREENHILL LOST OUT IN A BID FOR CONTROL OF MORGAN STANLEY MR GREENHILL WENT ON TO SPEARHEAD THE VIACOMPARAMOUNT MERGER WHICH REPORTEDLY EARNED SMITH BARNEY MORE THAN 25 MILLION IN FEES NONETHELESS CRITICS HAVE SAID MR WEILL'S COSTLY COMMITMENT TO INVESTMENT BANKING MAY PROVE SHORTLIVED ESPECIALLY IN A DOWN MARKET BUT MR BARBER SAID I'M CONVINCED THAT SANDY'S DESIRE TO INVEST IN INVESTMENT BANKING IS NOT A WHIM AND THAT I'M PREPARED TO TAKE SOME RISK HERE WORD WILL SOON GET OUT HE PREDICTED THAT SMITH BARNEY IS EXTREMELY GOOD AT THEIR ABILITY TO SELL TO BOTH RETAIL AND INSTITITIONS IN THE OVERALL UNDERWRITING RANKINGS FOR 1993 COMPILED BY RESEARCH FIRM SECURITIES DATA CO SMITH BARNEY DIDN'T FINISH IN THE TOP 10 ALTHOUGH ITS MARKET SHARES IN COMMONSTOCK UNDERWRITING AND INITIAL PUBLIC OFFERINGS ROSE FROM THE YEAREARLIER QUARTER 9404060104 940406 POLITICS & POLICY PRODUCER OF THE WILLIE HORTON AD INFLUENCES WHITEWATER COVERAGE WITH TIPS TO JOURNALISTS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR A STORY REALLY TO BE BIG SAYS FLOYD BROWN IT'S GOT TO BREAK ONTO TV AND HE IS ONLY TOO HAPPY TO PINPOINT THE DAY THE WHITEWATER STORY REACHED THE BIG TIME IT WAS NOV 11 1993 WHEN NBC NIGHTLY NEWS RAN A LENGTHY STORY RAISING QUESTIONS ABOUT THE CLINTONS' INVESTMENT IN WHITEWATER DEVELOPMENT CO AND INTERVIEWING FORMER ARKANSAS MUNICIPAL JUDGE DAVID HALE WHO CHARGED THAT MR CLINTON PRESSURED HIM TO MAKE A GOVERNMENTBACKED 300000 LOAN TO A CLINTON PARTNER IN THE ARKANSAS REALESTATE VENTURE MR BROWN HAS REASON TO CROW AFTER ALL HE BOASTS IT WAS HIS ORGANIZATION FAIRFAX VABASED CITIZENS UNITED THAT ARRANGED NBC'S INTERVIEW WITH MR HALE THUS BREAKING THE WHITEWATER STORY WIDE OPEN AND TURNING THE ONCECENSORED STORY INTO A NATIONAL ISSUE FOR THE FIRST TIME NBC OFFICIALS ADMIT TO WORKING IN ARKANSAS WITH MR BROWN'S INVESTIGATOR DAVID BOSSIE BUT ONLY AS A SOURCE FOR LEADS AND TIPS BUT IT'S PRECISELY THROUGH THE PROVISION OF LEADS AND TIPS TO MAINSTREAM NEWS ORGANIZATIONS THAT MR BROWN A YOUTHFUL VETERAN OF ATTACKDOG CONSERVATISM HAS INFLUENCED THE COURSE AND COVERAGE OF WHITEWATER STARTING IN 1992 WHEN HE WROTE A BOOK TITLED SLICK WILLIE WHY AMERICA CANNOT TRUST BILL CLINTON HE AND MR BOSSIE HAVE ASSEMBLED HUNDREDS OF DOCUMENTS SUCH AS TAX RETURNS LAND RECORDS AND CAMPAIGN REPORTS THAT DETAIL MR CLINTON'S BUSINESS AND POLITICAL ACTIVITIES IN ARKANSAS HE HAS SUPPLIED A STEADY STREAM OF DOCUMENTS TO NEWS ORGANIZATIONS INCLUDING THE NEWS AND EDITORIAL DEPARTMENTS OF THIS NEWSPAPER AND TO REPUBLICANS ON CAPITOL HILL EVEN ROBERT FISKE THE WHITEWATER SPECIAL COUNSEL HAS ASKED FOR COPIES OF THE THOUSANDS OF PAGES OF OLD DEEDS CONTRACTS AND CANCELED CHECKS THAT MR BROWN AND HIS STAFF HAVE COLLECTED MR BROWN ALSO WILLINGLY PASSES ON ANTICLINTON RUMORS THAT ARE HARD IF NOT IMPOSSIBLE TO SUBSTANTIATE MR BROWN SAYS THE LESSON OF WHITEWATER IS THAT OUR PRESIDENT IS INVOLVED IN HIGHLY UNETHICAL TRANSACTIONS HE FURTHER ASSERTS THAT AMERICA MADE A MISTAKE IN ELECTING PRESIDENT CLINTON MR CLINTON'S ALLIES THOUGH SAY THE NATION'S REAL MISTAKE IS IN GIVING MR BROWN THE TIME OF DAY FLOYD BROWN IS A SLIMY THUG FOR HIRE SAYS GEORGE STEPHANOPOULOS THE PRESIDENT'S SENIOR ADVISER SEN DAVID PRYOR AN ARKANSAS DEMOCRAT AND FRIEND OF BILL CHARGES THAT MR BROWN OPERATES A SLEAZE FACTORY THAT IS POURING OUT VENOM HATE LIES AND POISON SUCH ATTACKS DELIGHT THE FLAMBOYANT MR BROWN WHO REPLAYED MR PRYOR'S COMMENTS FROM A SENATE SPEECH ON HIS RADIO SHOW AND NOTED THAT RATS ALL OVER WASHINGTON ARE CHOKING ON THIS POISON CITIZENS UNITED IS HARDLY A MAJOR FORCE IN THE THE AMERICAN CONSERVATIVE MOVEMENT WITH A STAFF OF 26 ABOUT HALF OF WHOM ARE INVOLVED IN AN EXTENSIVE DIRECTMAIL OPERATION TO RAISE MONEY IT LACKS THE ORGANIZING CAPACITY TO INFLUENCE LEGISLATION AT THE NATIONAL OR STATE LEVEL IN 1992 THE LAST YEAR FOR WHICH FIGURES ARE AVAILABLE CITIZENS UNITED RAISED 24 MILLION AND PAID MR BROWN A SALARY OF 72000 BUT WHAT IT LACKS IN TRADITIONAL POLITICAL CLOUT IT MAKES UP FOR IN MR BROWN'S KNACK FOR PLAYING THE MEDIA AND GAINING ATTENTION FOR HIMSELF AND HIS MESSAGE THE 33YEAROLD WEST POINT DROPOUT IS CERTAINLY NO STRANGER TO FIGHTING IN POLITICAL JUNGLES IN 1988 HE INDEPENDENTLY PRODUCED AND AIRED THE INFAMOUS WILLIE HORTON TELEVISION AD ATTACKING MASSACHUSETTS GOV MICHAEL DUKAKIS THEN THE DEMOCRATIC PRESIDENTIAL NOMINEE THE AD FOCUSED ON A CONVICTED MURDERER WHO RAPED A WOMAN AFTER BEING RELEASED ON A TWOWEEK FURLOUGH FROM A MASSACHUSETTS PRISON DEMOCRATS CONDEMNED THE AD AS RACIST AND REPUBLICAN CANDIDATE GEORGE BUSH DISSOCIATED HIMSELF FROM IT IN THE 1992 PRESIDENTIAL CAMPAIGN MR BROWN AGAIN ACHIEVED NOTORIETY BY SETTING UP A PHONE LINE ON WHICH CALLERS COULD LISTEN TO GENNIFER FLOWERS TALKING ABOUT HER ALLEGED AFFAIR WITH BILL CLINTON A BUSH CAMPAIGN OFFICIAL DISMISSED MR BROWN AS A POLITICAL LEPER WHO IS MUCH MORE DAMAGING TO US THAN TO OUR OPPOSITION BUT MR CLINTON SAID THAT NO ONE NO SERIOUS PERSON BELIEVES THAT FLOYD BROWN IS INDEPENDENT OF THE REPUBLICAN CAMPAIGN NOW SUPPORTED BY CONTRIBUTIONS FROM ABOUT 175000 MEMBERS OF CITIZENS UNITED MR BROWN HAS BUILT A MODEST MEDIA EMPIRE TO PILLORY BILL AND HILLARY RODHAM CLINTON AT LEAST HALF OF HIS DAILY RADIO PROGRAM CALLED TALK BACK TO WASHINGTON WHICH IS HEARD IN 40PLUS CITIES MOSTLY IN THE PREDAWN HOURS IS DEVOTED TO LAMBASTING THE CLINTONS THE WHITEWATER SCANDAL IS GUSHING HE SAID RECENTLY FOR BILL CLINTON IT'S TIME TO DROWN HE ALSO ISSUES A DAILY WHITEWATER FAX BULLETIN HOW DID HILLARY REALLY MAKE THOSE HUGE PROFITS IN COMMODITIES FUTURES A RECENT FAX ASKED AND CLINTONWATCH HIS MONTHLY NEWSLETTER OFTEN PROFILES WOMEN WHO CLAIM TO HAVE HAD AFFAIRS WITH MR CLINTON ALL THIS IS TOTALLY CONSISTENT WITH THE WAY THAT FLOYD BROWN AND CITIZENS UNITED PARTICIPATE IN THE PROCESS SAYS ARTHUR KROPP THE PRESIDENT OF THE PEOPLE FOR THE AMERICAN WAY A LIBERAL GROUP THAT MONITORS CONSERVATIVE POLITICAL ACTIVITY THEY LIKE THE SKULLDUGGERY THE INTRIGUE AND THE MEDIA ATTENTION MR KROPP SAYS THAT WHAT SEEMS TO BE DRIVING MR BROWN AND OTHERS LIKE HIM IS A DESIRE TO KILL THE CLINTON PRESIDENCY IT IS A STATEMENT WITH WHICH MR BROWN MIGHT NOT TAKE ISSUE BOTTOM LINE HE SAYS WITH RELISH WE APPEAR ON THE WHITE HOUSE ENEMIES LIST 9404060103 940406 POLITICS & POLICY WHITTEN TO QUIT CONGRESS AFTER MORE THAN 50 YEARS WASHINGTON REP JAMIE WHITTEN THE DEAN OF THE HOUSE AND FORMER CHAIRMAN OF THE APPROPRIATIONS COMMITTEE WILL RETIRE FROM CONGRESS AFTER MORE THAN A HALF CENTURY AS A REPRESENTATIVE FROM MISSISSIPPI THE 83YEAROLD DEMOCRAT MADE HIS ANNOUNCEMENT ON THE EVE OF TODAY'S FUNERAL FOR HIS SUCCESSOR AS CHAIRMAN KENTUCKY REP WILLIAM NATCHER THE TWO EVENTS UNDERSCORE THE PASSING OF A HISTORIC GENERATION OF SOUTHERN AND BORDER STATE LEADERS WHO LONG DOMINATED THE APPROPRIATIONS PANEL THIS HAS NOT BEEN AN EASY DECISION SAID MR WHITTEN WHO LOST THE CHAIRMANSHIP LAST YEAR BECAUSE OF ILLNESS THE PEOPLE OF OUR STATE HAVE BEEN MIGHTY GOOD TO ME THROUGH THE YEARS THOSE YEARS BEGAN WITH HIS ELECTION TO CONGRESS WEEKS BEFORE THE ATTACK ON PEARL HARBOR IN 1941 AND BEFORE THE END OF HIS FIRST TERM THE FORMER PROSECUTOR WON A SEAT ON THE APPROPRIATIONS PANEL AS CHAIRMAN OF THE AGRICULTURE SUBCOMMITTEE HE WAS A MAJOR FORCE IN SHAPING FARM AND RURALDEVELOPMENT PROGRAMS FOR DECADES AND WON THE CHAIRMANSHIP OF THE FULL PANEL IN 1979 AMONG HIS PROJECTS WAS A 18 BILLION TENNESSEETOMBIGBEE WATERWAY RUNNING THROUGH HIS DISTRICT 9404060102 940406 US REJECTS LORENZO'S BID TO FORM AIRLINE DEPARTMENT CITES PROBLEMS AT PREVIOUS COMPANY CONTROL AT ATX CORP BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TRANSPORTATION DEPARTMENT TURNED DOWN FRANK LORENZO'S BID TO REENTER THE AIRLINE BUSINESS CITING SAFETY PROBLEMS AT HIS OLD AIRLINES AND SAYING HE WOULD HAVE TOO MUCH CONTROL OVER HIS NEW ONE ATX CORP THE UNUSUAL ACTION REJECTING ATX'S APPLICATION FOLLOWS A YEARLONG INVESTIGATION INTO MR LORENZO'S STORMY TENURE AS CHAIRMAN OF TEXAS AIR CORP IN THE 1980S WHEN IT CONTROLLED EASTERN AIR LINES AND CONTINENTAL AIRLINES ATX OFFICIALS WHO HAD PLANNED A SMALL LOWFARE AIRLINE BASED IN BALTIMORE SAID YESTERDAY THEY WILL FILE AN APPEAL IMMEDIATELY SUCH AN APPEAL WOULD MOST LIKELY BE FILED IN FEDERAL COURT HERE THIS IS THE MOST BLATANT ABUSE OF THE GOVERNMENT REGULATORY PROCESS WE HAVE EVER SEEN ATX PRESIDENT STEPHEN KOLSKI SAID AT A NEWS CONFERENCE IT'S OUR BELIEF THAT THE CREATION OF A SUCCESSFUL BUSINESS BY PROVIDING JOBS AND PROFITS IS A GOOD THING WE'RE APPALLED THE ADMINISTRATION DIDN'T HAVE THE INTEGRITY TO AGREE UNIONS WHICH OFTEN CLASHED WITH MR LORENZO AT EASTERN AND CONTINENTAL PRAISED THE DECISION TO TURN DOWN ATX JUSTICE HAS BEEN DONE AND THE PUBLIC INTEREST HAS BEEN PROTECTED SAID RANDY BABBITT A FORMER EASTERN PILOT WHO HEADS THE AIR LINE PILOTS ASSOCIATION MR BABBITT'S UNION PUT HEAVY RESOURCES INTO DEFEATING MR LORENZO ATX OFFICIALS SAW THE WRITING ON THE WALL IN DECEMBER WHEN AN ADMINISTRATIVE LAW JUDGE IN THE TRANSPORTATION DEPARTMENT BLAMED MR LORENZO FOR PAST SAFETY VIOLATIONS AT EASTERN AND CONTINENTAL AND RECOMMENDED THAT ATX BE DENIED A CERTIFICATE TO FLY IN AN ATTEMPT TO SAVE HIS APPLICATION MR LORENZO EARLIER THIS YEAR SOLD NEW STOCK TO INVESTORS AND SCALED BACK HIS OWNERSHIP OF ATX'S VOTING STOCK TO 23 FROM 57 BUT THE TRANSPORTATION DEPARTMENT SAID MR LORENZO WOULD HAVE A SIGNIFICANT EFFECT ON COMPANY OPERATIONS IN A 75PAGE DECISION YESTERDAY THE DEPARTMENT SAID MR LORENZO SELECTED MR KOLSKI AND WAS INVOLVED IN HIRING OTHER MANAGERS IS THE MOST EXPERIENCED AIRLINE MANAGER AT ATX REMAINS THE LARGEST SHAREHOLDER AND PROVIDED THE INITIAL CAPITAL THE COMPANY IS HIS CREATION THE DECISION SAID THE DECISION PRAISED MR LORENZO'S BUSINESS PLAN FOR ATX BUT SAID THAT IT CANNOT OVERCOME THE NEGATIVE CONCLUSIONS WE REACH BECAUSE OF MR LORENZO'S RECORD AT TEXAS AIR THE DECISION CITED THE HEIGHTENED FEDERAL SURVEILLANCE AND INSPECTION OF MR LORENZO'S PAST AIRLINES AND SAID EASTERN AND CONTINENTAL NEEDED A MASSIVE LIFESUPPORT SYSTEM TO STAY WITHIN SAFETY STANDARDS THE PROSPECT OF A REPEAT OF THE TEXAS AIR HISTORY IS UNACCEPTABLE THE DECISION SAID IT ALSO CRITICIZED MR LORENZO'S COMBATIVENESS DURING THE DEPARTMENT'S PROCEEDINGS WHEN HE CHALLENGED REQUESTS TO PRODUCE VARIOUS DOCUMENTS BY APPEALING THE DECISION ATX COULD GET A NEW ROUND OF HEARINGS AND OBTAINING THAT WILL BE AN UPHILL BATTLE BECAUSE THERE'S SUCH DEFERENCE AWARDED TO REGULATORY AGENCIES ACCORDING TO JEFFREY SHANE AN AVIATION LAWYER WHO WORKED IN THE BUSH ADMINISTRATION ONE GROUND FOR APPEAL MR KOLSKI SAID IS TRANSPORTATION SECRETARY FEDERICO PENA'S DECISION TO ORDER A FORMAL INVESTIGATION BY THE ADMINISTRATIVE LAW JUDGE SUCH A DECISION SHOULDN'T BE MADE BY A POLITICAL APPOINTEE MR KOLSKI SAID ATX HAS CHARGED THAT MR PENA MADE THE DECISION BECAUSE OF POLITICAL PRESSURE FROM UNION SUPPORTERS IN CONGRESS A SPOKESMAN FOR MR PENA SAID THERE'S NOTHING INAPPROPRIATE ABOUT THE SECRETARY BEING INVOLVED IN THE PROCESS HE SAID MR PENA FOLLOWED THE RECOMMENDATION OF CAREER STAFF WITHIN THE DEPARTMENT AND REFERRED THE CASE TO AN ADMINISTRATIVE LAW JUDGE TO MAKE SURE ATX HAD A FAIR HEARING THIS IS ONLY THE SECOND TIME THE TRANSPORTATION DEPARTMENT HAS USED AN ADMINISTRATIVE LAW JUDGE FOR A NEWAIRLINE APPLICATION THE OTHER CASE INVOLVED QUESTIONS OF AMERICAN CITIZENSHIP YESTERDAY'S DECISION WAS SIGNED NOT BY MR PENA BUT BY PATRICK V MURPHY A CIVIL SERVANT WHO IS ACTING ASSISTANT SECRETARY FOR AVIATION AND INTERNATIONAL AFFAIRS BRIDGET O'BRIAN IN HOUSTON CONTRIBUTED TO THIS ARTICLE 9404060101 940406 TECHNOLOGY & HEALTH IBM TALKS UP ITS NEW MAINFRAME LINE SEES CONTINUED DROP IN SECTOR REVENUE BY BART ZIEGLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTERNATIONAL BUSINESS MACHINES CORP GAVE AN UPBEAT ASSESSMENT OF THE NEW GENERATION OF MAINFRAME COMPUTERS IT INTRODUCED YESTERDAY BUT THE COMPANY SAID REVENUE FROM THE MAINFRAME BUSINESS WILL CONTINUE TO FALL MAINFRAME PRICES HAVE BEEN DROPPING 30 TO 35 A YEAR OUTSTRIPPING ANY GROWTH IN ORDERS AND THE NEW LINE THAT IBM UNVEILED MAY WELL ACCELERATE THAT TREND BY SOME ESTIMATES THE NEW MODELS WILL COST TWOTHIRDS LESS THAN THE PREVIOUS GENERATION IN TERMS OF PRICEPERFORMANCE STILL IBM'S MAINFRAME CHIEF NICHOLAS M DONOFRIO SAID IN AN INTERVIEW HE EXPECTS TO SELL HUNDREDS OF THE NEW MODELS OVER THE NEXT SIX MONTHS IF ANYTHING HE EXPRESSED HOPE THAT THE NEW LINE OF MAINFRAMES BASED ON LESS COSTLY PCLIKE MICROPROCESSOR CHIPS COULD HELP SLOW DEFECTION OF BIG CORPORATE CUSTOMERS WHICH HAVE BEEN TURNING TO RIVAL SMALLER MACHINES IBM ENTERED THE YEAR WITH A BACKLOG OF MAINFRAME ORDERS AND THAT DEMAND CONTINUED THROUGH THE FIRST QUARTER SAID MR DONOFRIO GENERAL MANAGER OF IBM'S LARGECOMPUTER BUSINESS BUT HE ADDED WE'RE REALISTIC ABOUT WHAT'S GOING ON IN TERMS OF REVENUES AN IBM SPOKESMAN SAID MAINFRAME REVENUE IN THE FIRST QUARTER WAS STRONGER THAN EXPECTED BUT THE COMPANY HAS SAID THAT FULLYEAR REVENUE FOR THAT SECTOR COULD DECLINE AS MUCH AS 50 IN 1994 AS PART OF THE CAMPAIGN TO DISSUADE CUSTOMERS FROM DUMPING THEIR MAINFRAMES IBM ALSO CUT SOFTWARE PRICES ACKNOWLEDGING THAT HIGH CHARGES HAVE BEEN A FACTOR IN THE EROSION OF ITS CUSTOMER BASE UNDER THE NEW PRICING A TYPICAL SMALL CUSTOMER COULD SEE MONTHLY SOFTWARE CHARGES FALL 11 WHILE IN SOME CASES A LARGE COMPANY CONSOLIDATING ITS PROCESSING ON A NEW BIGGER MAINFRAME SYSTEM WOULD GET A 34 DROP IN SOFTWARE COSTS WHILE THE NEW PRICING MAY REDUCE IBM'S LUSH SOFTWARE REVENUE AND PROFIT IN THE SHORT TERM OVER A LONGER PERIOD IT COULD PERSUADE MORE CUSTOMERS TO REMAIN WITH MAINFRAMES SAID MARK F MORIN IBM'S ASSISTANT GENERAL MANAGER FOR US SOFTWARE MARKETING THAT COULD EVENTUALLY BOOST THE COMPANY'S SOFTWARE BUSINESS HE MAINTAINED MR DONOFRIO DECLINED TO SAY HOW MUCH IBM HAS CUT COSTS TO OFFSET THE EXPECTED SLIDE IN MAINFRAME SALES THE NEW MACHINES TAKE FAR LESS MANUFACTURING SPACE AND EMPLOYEES TO PRODUCE AND IBM HAS LAID OFF THOUSANDS OF MAINFRAME WORKERS MR DONOFRIO SAID THE CUTBACKS MAY NOT BE OVER BUT WE'RE GETTING THERE THE NEW MODELS ARE BASED ON CHIPS SIMILAR TO THE FINGERNAILSIZE DEVICES USED IN PERSONAL COMPUTERS INSTEAD OF THE MUCH LARGER COSTLIER PROCESSING BOARDS OF OLDER MAINFRAMES BY LINKING TOGETHER HUNDREDS OF THE CHIPS THE NEW MODELS CAN PROVIDE AS MUCH AS FIVE TIMES THE POWER OF OLD MACHINESS AT LESS COST IBM SAID IBM WOULDN'T DISCLOSE PRICES EXCEPT TO SAY THAT A BASE MODEL WOULD START AT ABOUT 500000 IT CONTENDS THE NEW LINE IS COMPETITIVE WITH LESS COSTLY SYSTEMS THAT MAINFRAME CUSTOMERS HAVE BEEN USING TO ADD CAPACITY OR TO RUN NEW PROGRAMS IBM ALSO ANNOUNCED A MORE POWERFUL VERSION OF A MASSIVELY PARALLEL COMPUTER FOR CUSTOMERS WHO DON'T WANT A MAINFRAME THIS MACHINE KNOWN AS THE SP2 LINKS SCORES OF POWERPC CHIPS BUT CAN'T RUN THE OLD SOFTWARE INSTEAD USING THE UNIX OPERATING SYSTEM MR DONOFRIO SAID HE DIDN'T BELIEVE IBM WAS CONFUSING CUSTOMERS BY OFFERING SEVERAL APPROACHES TO LARGESCALE COMPUTING MOST CUSTOMERS HAVE ALREADY MADE UP THEIR MINDS ON WHICH TYPE OF SYSTEM THEY WANT HE SAID AND IBM IS BETTER OFF OFFERING A STRONG ALTERNATIVE THAN TO LOSE CUSTOMERS TO COMPETITORS SEPARATELY FLEET FINANCIAL GROUP SAID ITS FLEET NATIONAL BANK AGREED TO PURCHASE IBM CREDIT INVESTMENT MANAGEMENT CORP AN IBM UNIT THAT PROVIDES INVESTMENT MANAGEMENT AND SERVICES FOR THE IBM MUTUALFUND GROUP AND THE IBM MONEY MARKET ACCOUNT DEBT FOR 14 MILLION FLEET IS BASED IN PROVIDENCE RI 9404060100 940406 LEISURE & ARTS ON SPORTS DESPITE SCRIPT CHANGE IT'S HOG HEAVEN BY FREDERICK C KLEIN CHARLOTTE NC LIFE IS SIMPLE IN THIS MIDSIZE MIDSOUTH CITY WHEN IT COMES TO CUISINE YOUR OPTIONS ARE MAINLY TWO DO YOU WANT YOUR BARBEQUE SLICED OR CHOPPED GIVEN ANY CHOICE THE UNIVERSITY OF ARKANSAS BASKETBALL REPRESENTATIVES MIGHT HAVE ANSWERED BOTH BUT WHEN IT CAME DOWN TO IT THEY SETTLED FOR CHOPPED ON MONDAY NIGHT HERE IN THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION CHAMPIONSHIP GAME THEIR DEFENSE SLAPPED AND SCRATCHED AT THE BALL AND AT THEIR FOES FROM DUKE UNIVERSITY NOT NECESSARILY IN THAT ORDER DUKE GAVE AS WELL AS IT GOT FOR 39 OF THE CONTEST'S 40 MINUTES BUT THE LAST ONE AND THE TROPHY BELONGED TO THE RAZORBACKS LIKE MOST GAMES THIS ONE WAS DECIDED ON THE SCOREBOARD BY A SHOT AND IT WAS A HONEY SCOTTY THURMAN THE TALL ARKANSAS GUARD TOOK IT FROM JUST BEYOND THE THREEPOINT ARC TO THE RIGHT OF THE BASKET FIFTYONE SECONDS WERE LEFT ON THE CLOCK JUST A TICK OR TWO ON THE 35SECOND SHOT TIMER AND THE SCORE WAS TIED AT 70 HIS MATES HAD WANTED SOMETHING SIMPLER MAYBE A SHORT POP FROM CORLISS WILLIAMSON THEIR BULLISH POWER FORWARD BUT DUKE DOUBLETEAMING DENIED HIM THE BALL AND THURMAN WAS ELECTED ANTONIO LANG A TALLER DOOKIE LUNGED AT HIM SO THURMAN HAD TO AIM HIS TRAJECTORY HIGHER THAN HE USUALLY DOES BUT THE BALL WENT IN ANYWAY THEN THURMAN HUSTLED DOWN THE COURT TO BE THERE FOR THE REBOUND WHEN CHRIS COLLINS'S TRY FOR ANOTHER TIE RATTLED OUT FREE THROWS SET THE FINAL SCORE AT 7672 WHAT PRECEDED THE THURMAN MISSILE GOT MOST OF THE POSTGAME ATTENTION AND RIGHTLY I THOUGHT THEY WORE US DOWN A BIT BUT OUR HEART KEPT US IN IT SAID MIKE KRZYZEWSKI THE DUKE COACH OF A CONTEST THAT SPARKLED EVEN THOUGH GOOD DEFENSE FORCED BOTH TEAMS TO SHOOT POORLY IT WAS LIKE A HEAVYWEIGHT FIGHT YOUR TURN MY TURN YOUR TURN MY TURN SAID ARKANSAS COACH NOLAN RICHARDSON LUCKILY OUR TURN CAME LAST THE LAD WHO BEST EXEMPLIFIED THE GAME'S COMBATIVE NATURE WAS COREY BECK THE HOGS' JUNIOR GUARD HIS 15 POINTS WERE EIGHT FEWER THAN WILLIAMSON'S GAMEHIGH TOTAL BUT AT 6FOOT2 BECK LED HIS TEAM IN REBOUNDS AND WAS ITS PRIMARY DEFENSIVE SCRAPPER HE EVEN TOOK AN EFFECTIVE TURN ON THE COMMITTEE THAT BEDEVILED GRANT HILL THE 68 DUKE ACE EVERY TIME I LOOKED UP ONE OF THOSE GUYS WAS THERE SAID HILL WHO WAS HELD TO A SUBPAR 12 POINTS SOME PLAY TO PLAY COREY PLAYS TO WIN APPLAUDED HIS COACH NONETHELESS THE GAME DIDN'T FOLLOW THE SCRIPT MOST HAD IMAGINED THAT HAD ARKANSAS THE SOUTHEAST CONFERENCE REGULARSEASON CHAMP AND NATIONAL NO 1 FOR MUCH OF THE CAMPAIGN DEVOURING DUKE WITH ITS PERPETUALMOTION ATTACK BUT DUKE NOT ONLY DICTATED THE TEMPO MUCH OF THE TIME BUT ALSO GOT THE BETTER SHOTS EARLY ON WHEN THE TOURNEYWISE BLUE DEVILS HIT ON ALL CYLINDERS FOR A TWOMINUTE 130 RUN EARLY IN THE SECOND HALF THEY TOOK A 10POINT LEAD OVER THE YOUNGER TEAM BUT ARKANSAS CAME BACK AND DIDN'T HAVE TO PLAY PERFECTLY TO DO SO WHEN THE HOGS LOST THE BALL THEY GOT IT BACK WHEN THEY MISSED A SHOT THEY FOUND THE BALL AND SHOT IT AGAIN IT WAS A GAME SOMEBODY WON NOT LOST KRZYZEWSKI SUMMARIZED IT'S HARD TO BE TOO DISAPPOINTED THERE WAS INDEED CREDIT ENOUGH TO GO AROUND FOR LOSING DUKE IT WAS THE SEVENTH FINAL FOUR APPEARANCE AND FIFTH CHAMPIONSHIPFINAL GAME IN THE PAST NINE YEARS FIGURES THAT EXCEED THOSE OF ENTIRE MAJOR CONFERENCES WITH SOME 300 SCHOOLS IN THE RUNNING EVERY SEASON THAT MUST RANK AMONG THE MAJOR ACCOMPLISHMENTS OF MODERN AMERICAN SPORTS RIVALING UCLA'S NINE NCAA BASKETBALL CHAMPIONSHIPS IN 11 YEARS DURING THE 1960S AND '70S A LESS COMPETITIVE ERA TO APPRECIATE DUKE'S ACHIEVEMENT ONE NEED NOT SUBSCRIBE TO THE SPORTSPAGE SOCIOLOGY THAT PORTRAYS THE PLAYERS FROM THE HIGHPRICED HIGHLY RATED PRIVATE SCHOOL IN DURHAM NC AS STUDENT PRINCES THEY ARE COLLEGE BASKETBALL PLAYERS LIKE MOST OTHERS WITH PRETTY MUCH THE SAME BACKGROUNDS AND INTERESTS BUT THROUGHOUT THEIR ASCENDANCY THE OFFCOURT APPEARANCES OF THE DUKE SQUADS AND THEIR COACH HAVE BEEN MARKED BY THE KIND OF GRACE AND GOOD HUMOR THAT'S RARE IN ANY ARENA THESE DAYS MONDAY'S TRIUMPH OF A TEAM WITH AN AFRICANAMERICAN HEAD COACH AND AN ALLBLACK ACTIVE ROSTER SAVE ONE ARKANSAS HAS ANOTHER WHITE PLAYER WHO'S RARELY USED WAS AN APPROPRIATE END TO A SEASON THAT WAS THREATENED BY BOYCOTT OVER THE RECENT TIGHTENING OF SCHOLARSHIP LIMITS AND THE ACADEMIC QUALIFICATIONS OF PLAYERS BLACK COACHES LED THE PROTEST ON THE RATIONALE THAT THE RESTRICTIONS FELL HEAVIEST ON THE YOUNG MEN OF THEIR RACE WHO HAVE LONG MADE UP THE BULK OF COLLEGE HOOPS' MANPOWER IN HIS PREGAME ORATIONS HERE RICHARDSON WAS ANYTHING BUT SHY ABOUT RAISING RACIAL ISSUES THAT OFTEN PASS UNREMARKED DESPITE RECEIVING AT LEAST THREE NATIONAL COACHOFTHEYEAR AWARDS THIS TERM HE SAID HE THOUGHT BEING BLACK HAD PREVENTED HIM FROM RECEIVING THE CREDIT THAT WAS HIS DUE FOR A COACHING CAREER THAT HAS SPANNED EVERY EDUCATIONAL LEVEL SAVE ELEMENTARY SCHOOL HE ATTACKED THE NOTION THAT BLACKS INCLUDING HIS PRESENT SQUAD SUCCEED ATHLETICALLY BECAUSE OF PHYSICAL TALENTS RATHER THAN INTELLIGENCE WHO'S THE MOST INTELLIGENT' TEAM HERE NOT THESE GUYS HE SAID ARCHING AN EYEBROW AND GESTURING AT HIS STARTERS SEATED ALONGSIDE HIM AT THE FINALISTS' PRESS CONFERENCE SUNDAY AFTERNOON SAME FOR BLACK COACHES IT'S OK TO SAY WE CAN RECRUIT' AND MOTIVATE' BUT THE PRAISE ALWAYS STOPS THERE THAT'S WHAT MANY OF YOU PERCEIVE AND I HAVE A PROBLEM WITH THAT THE PARANOIA THAT'S BECOME RAMPANT IN THE COACHING PROFESSION DOES NOT EXPLAIN AWAY THE POINTS RICHARDSON MADE ATTENTION MUST BE PAID PATRONIZING ASSUMPTIONS AND THE RHETORIC THAT SUPPORTS THEM MUST CHANGE BUT SO TOO MUST THE NOTIONS FOSTERED BY THE COACHES' EMPIREBUILDING THAT SPORTS UNIQUELY DEFINE BLACK YOUTH AND THAT SUCCESS IN THE GYM CAN OVERCOME OTHER SHORTCOMINGS FOR MORE THAN A FORTUNATE FEW ONLY AN ACCELERATION IN COLLEGEATHLETICS REFORM CAN UNDERLINE THAT 9404060099 940406 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 COMMONWEALTH EDISON CO 150 MILLION OF DEBENTURES DUE FEB 15 1997 PRICED AT PAR TO YIELD 7 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 110 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN BANK SYSTEM 216 MILLION OF DEBENTURES DUE APRIL 13 1999 PRICED AT PAR TO YIELD 66 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 13 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF DEBENTURES DUE APRIL 12 1996 PRICED AT PAR TO YIELD 553 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WAS PRICED AT A SPREAD OF 10 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF NOTES DUE APRIL 11 1997 PRICED AT PAR TO YIELD 61 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR ONE YEAR AND WERE PRICED AT A SPREAD OF 23 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO SECURITY CAPITAL INDUSTRIAL TRUST SBI INITIAL PUBLIC OFFERING OF 33 MILLION SHARES PRICED AT 1150 EACH THROUGH SECURITY CAPITAL MARKETS GROUP INC ACCORDING TO THE COMPANY VIRGINIA PUBLIC SCHOOL AUTHORITY 1149 MILLION OF REVENUE BONDS APPARENTLY WON BY A JP MORGAN SECURITIES INC GROUP THE BONDS RATED DOUBLEA BY MOODY'S AND S&P WERE PRICED AT PAR FOR REOFFERING TO YIELD FROM 4 IN 1995 TO 645 IN 2014 FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1721 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 81 AND WEIGHTED AVERAGE MATURITY OF 355 MONTHS ADVANTA CORP 400 MILLION OF FLOATINGRATE ASSETBACKED SECURITIES ADVANTA CREDIT CARD MASTER TRUST 19941 FLOATINGRATE ASSETBACKED SECURITIES SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC ACCORDING TO MCM CORPORATEWATCH THE SECURITIES ARE BACKED BY VISA AND MASTERCARD RECEIVABLES SOLD AND SERVICED BY COLONIAL NATIONAL BANK USA A UNIT OF ADVANTA CREDIT ENHANCEMENT IS A 6 CASHCOLLATERAL ACCOUNT SHARED BY THE SENIOR AND SUBORDINATED CLASSES AND AN ADDITIONAL 2 CASHCOLLATERAL ACCOUNT DEDICATED TO THE SUBORDINATED CLASS BOTH CLASSES MATURE APRIL 30 1999 THE TRUST SOLD 376 MILLION OF CLASS A SENIOR ASSETBACKED SECURITIES AT PAR THE COUPON FLOATS AT 15 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE WITH A COUPON CAP OF 10 THE DEBT IS RATED TRIPLEA BY BOTH MOODY'S AND S&P THE 24 MILLION SUBORDINATED CLASS WAS PRICED AT PAR THE COUPON WILL FLOAT 40 BASIS POINTS ABOVE ONEMONTH LIBOR WITH A COUPON CAP OF 10 THOSE SECURITIES ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P CREGEM FINANCE NV BELGIAN PARENT 50 MILLION CANADIAN DOLLARS OF 8625 EUROBONDS DUE MAY 18 1999 AT ISSUE PRICE 102 VIA BANQUE INTERNATIONALE A LUXEMBOURG SA AND CREDIT COMMUNAL DE BELGIQUE SA AT COMANAGERS' BREAKEVEN PRICE 100125 BONDS YIELD 8593 GUARANTOR CREDIT COMMUNAL DE BELGIQUE SA FEES 1875 INTERNATIONAL FINANCE CORP SUPRANATIONAL 150 BILLION ITALIAN LIRE OF 8625 EUROBONDS DUE MAY 13 2004 AT ISSUE PRICE 10080 VIA BANCA NAZIONALE DEL LAVORO AT COMANAGERS' BREAKEVEN PRICE 98925 BONDS YIELD 879 FEES 1875 INTERNATIONAL FINANCE CORP SUPRANATIONAL 10 BILLION GREEK DRACHMAS OF 1525 MARATHON BONDS DUE MAY 11 1999 AT ISSUE PRICE 100875 VIA UBS LTD BNP CAPITAL MARKETS LTD AND ETBA AT COMANAGERS' BREAKEVEN PRICE 99375 BONDS YIELD 1544 FEES 1625 INCLUDING SPECIAL LEAD MANAGER'S FEE OF 0125 MERRILL LYNCH & CO US 40 BILLION YEN OF 35 EUROBONDS DUE JULY 28 1997 AT ISSUE AND FIXED REOFFER PRICE 10015 VIA MERRILL LYNCH INTERNATIONAL LTD BONDS PRICED TO YIELD 345 FEES 025 POINT 9404060097 940406 SMALL STOCK FOCUS STOCKS REBOUND LED BY COMBINATION OF DROP IN RATES SURGE IN TECH ISSUES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK BUYERS SPRANG TO LIFE AFTER SEVEN SESSIONS OF DORMANCY GIVING SMALLCOMPANY STOCKS A STRONG BOUNCE FALLING INTEREST RATES ENCOURAGED BROADBASED GAINS AMONG EQUITIES TRADERS SAID THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1 5/8 POINTS SHOVING ITS YIELD DOWN TO 724 BONDMARKET WORRIES HAVE HELD STOCK INVESTORS HOSTAGE FOR THE PAST 1 1/2 WEEKS AND CAUSED A SHARP CORRECTION SINCE THE END OF LAST MONTH THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION ISSUES CLIMBED 692 POINTS OR 28 TO 25396 ITS FIRST ADVANCE SINCE MARCH 23 A REBOUND IN TECHNOLOGY ISSUES HELPED DRIVE THE NASDAQ COMPOSITE INDEX UP 2354 POINTS OR 32 TO 75095 THAT ONEDAY POINT GAIN WAS SECOND ONLY TO THE JUMP ON OCT 21 1987 TWO DAYS AFTER THE STOCK MARKET CRASHED AMONG RECENTLY BATTERED TECH ISSUES MICROTEST A PHOENIX SUPPLIER OF TOOLS FOR LOCAL AREA NETWORK CABLING SURGED 1 1/8 TO 8 3/4 SOFTWARE PUBLISHING SANTA CLARA CALIF GAINED 7/8 TO 7 1/8 DIODES AMEX A WESTLAKE VILLAGE CALIF SEMICONDUCTOR EQUIPMENT FIRM IMPROVED 7/8 TO 7 7/8 SOME TECH ISSUES MOVED ON INDIVIDUAL COMPANY NEWS AN ALEX BROWN & SONS INITIAL BUY RATING BOOSTED FRAME TECHNOLOGY SAN JOSE CALIF 1 3/4 TO 10 1/2 CHECKMATE ELECTRONICS JUMPED 1 1/8 TO 7 1/2 THE ROSWELL GA COMPANY BEGAN SHIPPING A NEW VERSION OF ITS CMR 400M CHECK READER WHICH WILL BE ABLE TO ATTACH TO AND COMMUNICATE WITH ANY ELECTRONIC CASH REGISTER ECC INTERNATIONAL NYSE GOT A 1 1/8 BOOST TO 11 1/4 ON NEWS OF A 49 MILLION AIR FORCE CONTRACT THE WAYNE PA COMPANY SAID IT WILL DESIGN AND MAKE F16C FALCON SIMULATED AIRCRAFT TRAINERS WHICH WILL BE DELIVERED TO KOREA REPUBLIC GOLDFIELDS AMEX SURGED 1/2 TO 4 THE TORONTO COMPANY SAID THAT SUBJECT TO REGULATORY APPROVAL IT HAS ARRANGED A PRIVATE PLACEMENT OF 300000 UNITS AT 350 EACH WITH A FOREIGN INVESTOR EACH UNIT INCLUDES ONE COMMON SHARE AND ONE WARRANT TO BUY HALF A SHARE AT 375 EACH THROUGH APRIL 5 1995 MOST SMALL OIL ISSUES BENEFITED FROM SMITH BARNEY SHEARSON AND KIDDER PEABODY UPGRADES OF LARGER STOCKS IN THE GROUP THE BROKERAGE FIRMS EXPECT OIL PRICES TO RECOVER THIS YEAR PLAINS RESOURCES AMEX ADDED 3/4 TO 6 3/8 AND TEXAS MERIDIAN RESOURCES AMEX CLIMBED 1 1/8 TO 11 UNITED MERIDIAN NYSE ROSE 1 3/8 TO 13 7/8 ON THE NYSE ALL THREE COMPANIES ARE BASED IN HOUSTON BUT EASTEX ENERGY SAGGED 1/2 TO 3 ON EXPECTATIONS OF A FIRSTQUARTER LOSS THE HOUSTON NATURALGAS COMPANY SAID IT EXPECTS A LOSS FOR THE PERIOD PRIMARILY BECAUSE OF A TERMINATED AGREEMENT TO ACQUIRE A NIPSCO INDUSTRIES SUBSIDIARY EASTEX EARNED THREE CENTS A SHARE A YEAR EARLIER INFORMATION RESOURCES SLID 2 TO 14 WITH ABOUT 20 OF THE COMPANY'S SHARES TRADING HANDS ON A DISAPPOINTING FIRSTQUARTER EARNINGS OUTLOOK THE CHICAGO INFORMATIONSERVICES CONCERN SAID IT EXPECTS FIRSTQUARTER NET INCOME OF ABOUT 10 CENTS A SHARE DOWN FROM 22 CENTS A YEAR EARLIER COMMAND SECURITY DROPPED 1/4 TO 3 5/8 LATE MONDAY THE LAGRANGEVILLE NY FIRM SAID ITS ACCOUNTANTS HAVE RECOMMENDED THE DOWNWARD REVISION OF EARNINGS IN CERTAIN PRIOR INTERIM AND YEAREND FINANCIAL STATEMENTS COMMAND SECURITY SAID FINAL ADJUSTMENTS HAVEN'T BEEN AGREED UPON ALTHOUGH THE IMPACT OF THE CHANGES IS EXPECTED TO BE MATERIAL WEAKER FISCAL FOURTHQUARTER EARNINGS SENT BRAUN'S FASHIONS DOWN 1/2 TO 6 1/2 THE EDEN PRAIRIE MINN RETAILER REPORTED NET INCOME OF ONE CENT A SHARE FOR THE FISCAL FOURTH QUARTER ENDED FEB 26 DOWN FROM 19 CENTS A YEAR EARLIER IN ADDITION BRAUN'S SAID ITS FOURTHQUARTER AND FISCAL 1994 SAMESTORE SALES FELL INSIGNIA FINANCIAL GROUP GREENVILLE SC GAVE UP 1 5/8 TO 17 1/2 THE COMPANY SAID ITS EARNINGS FOR THE FIRST TWO QUARTERS OF THIS YEAR SHOULD BE ABOUT HALF OF WHAT ANALYSTS FORECAST WALL STREET EXPECTS PERSHARE NET INCOME OF 20 CENTS FOR THE FIRST QUARTER AND 25 CENTS IN THE SECOND QUARTER INSIGNIA SAID THE DIFFERENCE BETWEEN ANALYST PROJECTIONS AND REPORTED EARNINGS SHOULD BE PICKED UP IN THE SECOND HALF ADVANCING NASDAQ STOCK MARKET ISSUES TOPPED DECLINERS 2509 TO 879 NASDAQ VOLUME WAS 3308 MILLION SHARES COMPARED WITH 3137 MILLION SHARES A DAY EARLIER A VERY VERY OVERSOLD SITUATION SET THE STAGE FOR YESTERDAY'S SHARP GAINS SAID ARNOLD OWEN MANAGING DIRECTOR OF TRADING AT SOUNDVIEW FINANCIAL CORP COMPUTER NETWORKERS SOFTWARE MAKERS AND PC MAKERS LED THE CHARGE HIGHER HE ADDED NOW THAT THE TECH SECTOR HAS RISEN BACK FROM THE DOLDRUMS SOME ANALYSTS THINK THE SMALLCAP STOCK RALLY FOR THE YEAR IS BACK ON TRACK TECHNOLOGY ISSUES HISTORICALLY SET THE PACE IN THE SMALLSTOCK GROUP TODAY THE FEAR OF INTEREST RATES DISSIPATED AND BASICALLY SMALL STOCKS DOUBLED WHAT LARGE STOCKS DID SAID SATYA D PRADHUMAN A SENIOR QUANTITATIVE ANALYST AT MERRILL LYNCH & CO THE DOW JONES INDUSTRIAL AVERAGE POPPED 8206 OR 23 HIGHER TO 367541 LAGGING BEHIND BROADERMARKET GAINS MARKET WATCHERS SAY SMALLER STOCKS HAD PULLED BACK FARTHER DURING THE RECENT CORRECTION GIVING THEM MORE ROOM TO BOUNCE MR PRADHUMAN CONTINUES TO BE BULLISH ON THE SMALLER GROUP'S LONGTERM PROSPECTS STICKING BY HIS BELIEF THAT THE RUSSELL 2000 WILL REPEAT 1993'S STELLAR PERFORMANCE AND OUTPERFORM BOTH THE STANDARD & POOR'S 500STOCK INDEX AND THE DOW INDUSTRIALS 9404060096 940406 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 11/16 HIGH 3 1/2 LOW 3 3/8 NEAR CLOSING BID 3 5/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 1/4 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 372 30 TO 44 DAYS 375 45 TO 59 DAYS 385 60 TO 94 DAYS 395 95 TO 119 DAYS 4 120 TO 149 DAYS 410 150 TO 179 DAYS 420 180 TO 239 DAYS 430 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 381 30 DAYS 390 60 DAYS 402 90 DAYS CERTIFICATES OF DEPOSIT 313 ONE MONTH 326 TWO MONTHS 338 THREE MONTHS 374 SIX MONTHS 423 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 440 SIX MONTHS BANKERS ACCEPTANCES 371 30 DAYS 380 60 DAYS 391 90 DAYS 4 120 DAYS 410 150 DAYS 422 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 13/16 3 11/16 ONE MONTH 3 15/16 3 13/16 TWO MONTHS 4 1/16 3 15/16 THREE MONTHS 4 3/16 4 1/16 FOUR MONTHS 4 5/16 4 3/16 FIVE MONTHS 4 7/16 4 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 13/16 ONE MONTH 4 1/16 THREE MONTHS 4 7/16 SIX MONTHS 5 1/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 575 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 843 60 DAYS 849 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 835 60 DAYS 842 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 625 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 287 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404060095 940406 INTERNATIONAL TURKEY'S CILLER PUSHES TOUGH MEASURES IN BID TO CUT 43 BILLION BUDGET DEFICIT BY JAMES M DORSEY STAFF REPORTER OF THE WALL STREET JOURNAL ANKARA TURKEY PRIME MINISTER TANSU CILLER UNVEILED TOUGH AUSTERITY MEASURES DESIGNED TO REDUCE TURKEY'S 43 BILLION BUDGET DEFICIT AND RESTORE DOMESTIC AND INTERNATIONAL CONFIDENCE IN HER GOVERNMENT'S ECONOMIC POLICIES SPEAKING AT A NATIONALLY TELEVISED NEWS CONFERENCE MRS CILLER SAID HER SHOCK THERAPY WOULD INCLUDE THE CLOSURE OF UNPROFITABLE STATEOWNED ENTERPRISES MASS LAYOFFS LARGESCALE PRIVATIZATION THE FREEZING OF WAGES DRASTIC PRICE INCREASES OF AS MUCH AS 100 ON STATE MONOPOLY GOODS SUCH AS GASOLINE TOBACCO AND SUGAR NEW TAXES AND MEASURES TO CUT DOWN FUNDING OF PUBLIC DEFICITS MRS CILLER'S PROGRAM IS IN LINE WITH POLICIES SUGGESTED TO HER BY BOTH INTERNATIONAL FINANCIAL INSTITUTIONS SUCH AS THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK AS WELL AS ISRAEL WHICH HAD TO COPE WITH SIMILAR PROBLEMS IN THE 1980S IF WE DON'T TAKE THESE MEASURES WE WILL BE HEADING TOWARD A LATIN AMERICAN EXPERIENCE WITH 2000 TO 3000 INFLATION MRS CILLER SAID DETERIORATION IN FISCAL BALANCES DURING THE PAST SIX YEARS HAS BROUGHT TURKEY TO THE BRINK OF BANKRUPTCY TOTAL FOREIGN DEBT REACHED 66 BILLION LAST YEAR AND THE 1993 CURRENTACCOUNT DEFICIT WIDENED TO AN ALLTIME HIGH OF 63 BILLION A SHARP RISE IN IMPORTS AND THE SLOW PACE OF EXPORTS PRODUCED A RECORD FOREIGN TRADE GAP OF 14 BILLION LAST YEAR BUSINESSMEN POLITICIANS AND SENIOR OFFICIALS WELCOMED MRS CILLER'S PROGRAM EXPRESSING HOPE THAT SHE WOULD HAVE THE STAYING POWER TO IMPLEMENT THE PAINFUL MEASURES THEY'VE ANNOUNCED A LOT OF THINGS BEFORE LET'S SEE IF THEY DO IT SAID ISAK ANTIKA HEAD OF CHASE MANHATTAN BANK'S OPERATIONS IN TURKEY PARTS OF THE PROGRAM LIKE TAXATION AND PRIVATIZATION ARE KEY ISSUES THERE IS NOTHING SOLID BEYOND THE PRICE HIKES AT THIS POINT BECAUSE IT REQUIRES ENACTMENT OF LAWS ADDED USTUN SANVER AN INVESTMENT AND FINANCIAL CONSULTANT WHO SERVED UNTIL LAST YEAR AS HEAD OF THE PUBLIC PARTICIPATION ADMINISTRATION TURKEY'S PRIVATIZATION AGENCY BANKERS AND SENIOR OFFICIALS SUGGESTED THAT SUPPORT FROM THE INTERNATIONAL FINANCIAL COMMUNITY WOULD HELP THE GOVERNMENT STAY ITS COURSE EVEN IF THIS WERE TO LEAD TO SOCIAL UNREST IN POLITICALLY SENSITIVE REGIONS SUCH AS THE COAL PRODUCING AREA OF ZONGULDAK IN NORTHWESTERN TURKEY MRS CILLER SAID THE CENTRAL BANK WOULD BE FREED GRADUALLY FROM THE BURDEN OF FINANCING THE BUDGET DEFICIT AS MRS CILLER SPOKE THE CENTRAL BANK KNOCKED 28 OFF THE DOLLAR VALUE OF THE TURKISH LIRA SETTING THE DOLLAR AT 32053 LIRA UP FROM MONDAY'S 23078 THE BANK ALSO ISSUED NEW REGULATIONS TO STABILIZE MARKETS AND PROMISED A NEW MONETARY PROGRAM WITHIN A FORTNIGHT TURKEY DEVALUED THE LIRA AGAINST THE DOLLAR BY 12 ON JAN 26 SINCE THEN THE CURRENCY HAS PLUNGED AN ADDITIONAL 53 AGAINST THE DOLLAR DUE TO TURMOIL IN THE FINANCIAL MARKETS AS MANY AS 40000 PEOPLE ARE LIKELY TO LOSE THEIR JOBS AS A RESULT OF THE CLOSURE OF UNPROFITABLE STATE ENTERPRISES INCLUDING COAL MINES AN IRON AND STEEL FACTORY A PETROCHEMICAL INSTALLATION SEVEN TEXTILE MILLS AND THREE SHIPYARDS OFFICIALS SAID THE MEASURES ARE AGAINST THE INTERESTS OF OUR PEOPLE THEY WILL INCREASE UNEMPLOYMENT AND POVERTY AS WELL AS SOCIAL AND POLITICAL UNREST SAID BAYRAM MERAL CHAIRMAN OF THE TURKIS LABOUR CONFEDERATION TURKEY'S LARGEST TRADEUNION MOVEMENT 9404060094 940406 FOREIGN EXCHANGE DOLLAR SOARS ON TAIL WINDS TRIGGERED BY STRONG RALLIES IN STOCKS AND BONDS BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SOARED YESTERDAY CRUISING IN THE SLIPSTREAM OF SIMILARLY EUPHORIC RISES IN THE US STOCK AND BOND MARKETS AS THE DOLLAR TOOK OFF IT CRASHED THROUGH A STRONG PSYCHOLOGICAL BARRIER AT 17000 MARKS TO HIT AN INTRADAY HIGH OF 17175 MARKS A LEVEL PREVIOUSLY REACHED MARCH 8 THE DOLLAR THEN HELD NEAR THAT LEVEL GIVING RISE TO SPECULATION THAT THE DAYS OF DOLLAR DOLDRUMS MIGHT BE OVER AS INVESTORS AGAIN FOCUS ON THE RELATIVE MERITS OF THE US ECONOMY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17140 MARKS SHARPLY UP FROM 16973 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10435 YEN UP FROM 10320 YEN STERLING WAS TRADING AT 14645 DOWN FROM 14662 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10440 YEN AND AT 17125 MARKS TRADERS SAID THE PIVOTAL POINT FOR THE DOLLAR'S ASCENT MIGHT HAVE BEEN LAST FRIDAY'S US JOBS DATA WHICH SHOWED THAT NONFARM PAYROLLS ROSE BY 456000 LAST MONTH JUST ABOUT DOUBLE EXPECTATIONS THE DOLLAR WAS ABLE TO ADVANCE FRIDAY AND MONDAY DESPITE SHARP FALLS IN BOND AND EQUITY PRICES AMIDST THE INFLATION FEARS SPARKED BY THE JOBS DATA AND THE DOLLAR THEN TOOK FULL ADVANTAGE OF YESTERDAY'S RALLY ON WALL STREET THE STRONGEST RECOVERY IN STOCKS SINCE 1991 IF YOU HAD TO GIVE A REASON WHY THE DOLLAR CAME UP IT WAS THE JOBS FIGURES ON FRIDAY FOLLOWED BY A POSITIVE STOCK MARKET SAID BRUCE CAMPBELL CHIEF DEALER AT FIRST FIDELITY BANK IN NEWARK NJ IT REALLY LOOKED AS IF EVERYONE WAS JUST WAITING FOR THE STOCK MARKET TO OPEN AND THAT'S EXACTLY WHAT TOOK IT THROUGH HE ADDED THE DOW JONES INDUSTRIAL AVERAGE CLOSED 8206 POINTS HIGHER FOR THE DAY MIRRORING A SIMILAR BUT SOMEWHAT LESS DRAMATIC RECOVERY IN THE US BOND MARKET EVEN BEFORE THE US STOCK MARKET OPENED TRADERS BANKED ON A REBOUND IN THE INDUSTRIAL AVERAGE WHICH HAD PLUNGED A TOTAL OF 276 POINTS DURING THE PAST SEVEN SESSIONS ESPECIALLY AFTER THE BOND MARKET WAS SEEN RISING EARLIER ON SHORTCOVERING AND ATTRACTIVE YIELDS THE EQUITY AND BOND MARKETS WERE GROSSLY OVERSOLD A SNAPBACK WAS DUE AND THERE'S PROBABLY MORE COMING SAID VICTOR POLCE FOREIGNEXCHANGE MANAGER FOR COMMERZBANK IN NEW YORK ONCE THE STOCK MARKET GOT ITSELF GOING IT WAS A FLIGHT TO THE DOLLAR HE ADDED PEOPLE BECAME AGGRESSIVE IN TERMS OF BUILDING LONG DOLLAR POSITIONS HE ADDED NOTING THAT A BREAK ABOVE MAJOR TECHNICAL RESISTANCE AT 17020 MARKS TRIGGERED AN AVALANCHE OF STOPLOSS ORDERS AND CARRIED THE DOLLAR HIGHER MR POLCE ADDED THAT IF THE FLIGHT TO DOLLARDENOMINATED ASSETS CONTINUES THE US CURRENCY COULD TEST 17250 MARKS SOON IT WAS A WILD DAY HE SAID THE DOLLAR'S GAINS AGAINST THE MARK AND PRACTICALLY ALL OTHER EUROPEAN CURRENCIES SNOWBALLED INTO THE YEN AS WELL REPEATED BANK OF JAPAN INTERVENTION DURING ASIAN TRADING KEPT THE DOLLAR WELL SUPPORTED AT AROUND 103 YEN AND IT THEN ROSE ON EUPHORIA ENGENDERED BY THE ACTION ON US FINANCIAL MARKETS THE DOLLAR MUSCLED ITS WAY ABOVE 10380 YEN THEN BROKE ABOVE 104 YEN ON A REPORT LATE IN NORTH AMERICAN TRADING THAT REFUELED OPTIMISM OVER THE COLLAPSED USJAPAN TRADE TALKS US TRADE REPRESENTATIVE MICKEY KANTOR CONFIRMED THAT HE AND JAPANESE FOREIGN MINISTER TSUTOMU HATA WOULD DISCUSS TRADE ISSUES AT A SESSION OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR GATT IN MOROCCO IN MIDAPRIL THE DOLLAR THEN SOARED TO AN INTRADAY HIGH OF 10480 YEN BEFORE GIVING BACK SOME OF ITS GAINS ON PROFITTAKING 9404060093 940406 REVIEW & OUTLOOK EDITORIAL RENO'S SURRENDER IN A MAN FOR ALL SEASONS SOMEONE ASKS SIR THOMAS MORE IF HE WOULD ABANDON THE LAW TO DEFEAT THE DEVIL HE SAYS NO BECAUSE ONCE THE LAW WAS GONE THERE WOULD BE NOTHING TO PREVENT THE DEVIL FROM GOING AFTER HIM WE THOUGHT OF THAT FAMOUS SCENE LAST WEEK AFTER ATTORNEY GENERAL JANET RENO SACRIFICED ONE OF HER TOP CAREER PROSECUTORS TO APPEASE REPRESENTATIVE JOHN DINGELL NEIL CARTUSCIELLO KARTAHCHELO RESIGNED FRIDAY AS CHIEF OF THE JUSTICE DEPARTMENT'S ENVIRONMENTAL CRIMES SECTION LARGELY BECAUSE THE DEMOCRATIC HOUSE BARON WAS LINING HIM UP FOR A BEHEADING BUT INSTEAD OF STANDING BY HER MAN MS RENO ALL BUT HELD THE AX AS IT FELL THIS EPISODE MATTERS BECAUSE IT DEMONSTRATES HOW MUCH MS RENO BENDS TO POLITICAL PRESSURE AT THE JUSTICE DEPARTMENT PRESIDENTIAL CRONY WEBB HUBBELL FIRST RAN THE SHOP AND NOW MR DINGELL IS SHOWING HE HAS SWAY EVEN OVER THE FATE OF CAREER PROSECUTORS MR CARTUSCIELLO'S FORCED RESIGNATION SHOULD WORRY ANYONE WHO THINKS THAT DECISIONS TO PROSECUTE SHOULDN'T BE SUBJECT TO CONGRESSIONAL WHIM FOR APPEARANCE'S SAKE OF COURSE THE RESIGNATION IS BEING ADVERTISED AS A FRIENDLY PARTING MS RENO EXPRESSED HER DEEP GRATITUDE TO MR CARTUSCIELLO WHO WROTE THANKING MS RENO FOR HER MANY COURTESIES BUT OUR SOURCES SAY THAT MS RENO TOLD MR CARTUSCIELLO LAST WEEK HE HAD NO CHOICE BUT TO STEP ASIDE WE'RE ALSO TOLD THAT LOIS SCHIFFER WHO HAS BEEN NOMINATED AS AN ASSISTANT ATTORNEY GENERAL FOR THE ENVIRONMENT TOLD HIM THE SAME THING WEEKS AGO THIS CAPITULATION IS ESPECIALLY STRANGE BECAUSE IT FOLLOWS AN INTERNAL JUSTICE REVIEW THAT EXONERATED MR CARTUSCIELLO OF THE ALLEGATIONS MR DINGELL HAS BEEN MAKING AGAINST HIM THE BASIC DINGELL CHARGE WHICH IS LARGELY A POLITICAL AGENDA IS THAT MR CARTUSCIELLO AND HIS FELLOW PROSECUTORS HAVEN'T HARASSED ENOUGH CORPORATE POLLUTERS BUT THE INTERNAL REVIEW CONDUCTED BY FOUR CAREER ATTORNEYS CONCLUDED THAT THE SUGGESTIONS OF INCOMPETENCE IMPROPER MOTIVATION AND WRONGDOING ARE BASELESS THE DINGELL SUBCOMMITTEE MISTAKENLY RELIED ON DUBIOUS SOURCES AND INCOMPLETE ANALYSES TO QUESTION THE ABILITY AND INTEGRITY OF CAREER ATTORNEYS WHO MADE ENTIRELY APPROPRIATE PROSECUTIVE DECISIONS INDEED MR DINGELL'S JIHAD HAS RELIED HEAVILY ON THE TESTIMONY OF A WITNESS WHO APPEARS TO HAVE LIED ABOUT HIS CREDENTIALS RALEIGH FARLOW A SUPPOSEDLY EXPERT WITNESS AGAINST THE PUREGRO COMPANY IN A POLLUTION CASE CLAIMED IN SWORN TESTIMONY TO HAVE A MEDICAL DEGREE FROM FAR EASTERN UNIVERSITY IN THE PHILIPPINES BUT MAYBE NOT MR FARLOW ACKNOWLEDGED TO US THAT I'M NOT A LICENSED PHYSICIAN ALTHOUGH I DO HAVE THE TRAINING HOWEVER THE REGISTRAR OF FAR EASTERN IN MANILA TELLS US THAT MR FARLOW ATTENDED THAT SCHOOL FOR ONLY 18 MONTHS NOT THE REQUIRED FOUR YEARS AND WAS NEVER GRANTED A DIPLOMA JUSTICE'S INTERNAL REVIEW CONCLUDED THAT MR FARLOW WOULD HAVE BEEN A DISASTROUS WITNESS FOR THE GOVERNMENT IN OTHER WORDS MR CARTUSCIELLO AND HIS COLLEAGUES DID THE RIGHT THING IN LETTING PUREGRO PLEAD ON A MISDEMEANOR CHARGE RATHER THAN PURSUE A FELONY TRIAL THAT THEY WOULD HAVE LOST NOW SAVOR THE IRONY MR DINGELL OFTTIME CRITIC OF SCIENTIFIC FRAUD CLAIMS THAT BASED ON MR FARLOW'S EXPERTISE MR CARTUSCIELLO SHOULD HAVE THROWN THE BOOK AT PUREGRO THE BIG PICTURE HERE IS WHETHER THE RENO JUSTICE DEPARTMENT IS GOING TO STAND FOR NONPOLITICAL PROSECUTION ON THIS POINT WE'D LIKE TO SEE THE SENATE JUDICIARY COMMITTEE QUESTION MS SCHIFFER AT HER CONFIRMATION HEARINGS ABOUT JUST WHEN SHE LEARNED ABOUT THE PUREGRO CASE AND MR FARLOW'S DUBIOUS CREDENTIALS IF SHE AGREES WITH MR DINGELL SHE WILL HAVE SHOWN HERSELF TOO MUCH A SYCOPHANT FOR THE JOB RICK FILKINS A LINE PROSECUTOR WHO WORKED WITH MR CARTUSCIELLO SUMS UP THE ENTIRE SORRY EPISODE LIKE THIS IN THE CONFRONTATION BETWEEN JUSTICE AND JOHN DINGELL JUSTICE FIRST BLINKED THEN COWERED SHEEPISHLY AND THEN LAID PROSTRATE WHOSE HEAD WILL BE NEXT 9404060092 940406 WHAT'S NEWS BUSINESS AND FINANCE STOCK AND BOND PRICES SOARED AS BARGAINHUNTERS SWEPT INTO THE STOCK MARKET AMID RISING BOND PRICES THE DOW JONES INDUSTRIALS ROCKETED 8206 POINTS OR 23 TO 367541 THE LARGEST SINGLEDAY ADVANCE SINCE DEC 23 1991 THE TREASURY'S BENCHMARK 30YEAR BOND CLIMBED MORE THAN 1 5/8 POINTS WHILE THE YIELD FELL TO 724 SOUTHWESTERN BELL AND COX ENTERPRISES CALLED OFF PLANS FOR A 49 BILLION CABLE PARTNERSHIP CITING INCREASINGLY STRINGENT GOVERNMENT RULES THE INDEX OF LEADING ECONOMIC INDICATORS FELL 01 IN FEBRUARY FROM JANUARY THE FIRST DROP IN SEVEN MONTHS AS WEATHER CURTAILED WORKWEEKS THE ECONOMY'S QUICK EXPANSION IN THE PAST SIX MONTHS HAS BEGUN TO PRODUCE BOTTLENECKS IN THE SUPPLY CHAIN THAT COULD LEAD TO HIGHER PRICES STATE AND LOCAL PENSION PLANS ACROSS THE COUNTRY ARE MORE THAN 125 BILLION SHORT OF THE MONEY THEY WILL NEED TO MEET THEIR PENSION PROMISES INCLUDING FEDERAL CIVILIAN AND MILITARY EMPLOYEES THE PENSION PLANS' UNDERFUNDING TOTALS 124 TRILLION TEAMSTERS UNION LEADERS CALLED ON 75000 DRIVERS FOR FREIGHT COMPANIES TO STRIKE BEGINNING EARLY THIS MORNING FRANK LORENZO'S BID TO REENTER THE AIRLINE BUSINESS WAS TURNED DOWN BY TRANSPORTATION OFFICIALS WHO CITED SAFETY PROBLEMS AT HIS OLD AIRLINES AND SAID HE WOULD HAVE TOO MUCH CONTROL OVER HIS NEW AIRLINE ATX A FEDERAL JUDGE SAID AT&T HASN'T YET PERSUADED HIM TO APPROVE ITS PURCHASE OF MCCAW CELLULAR BUT HE SUGGESTED HE MAY CLEAR THE DEAL LATER CONTINENTAL AIR SAID IT WAS RESUMING PAY RAISES AND GIVING ONE MILLION SHARES OR 4 OF STOCK OUTSTANDING TO ITS EMPLOYEE COMPENSATION PROGRAM BUT THE COMPANY ALSO PLANS TO ELIMINATE 1000 JOBS THROUGH FURLOUGHS AND ATTRITION DURING THE NEXT FEW MONTHS INFORMATION RESOURCES SLASHED ITS EARNINGS ESTIMATE FOR THE SECOND TIME IN TWO MONTHS AMID A COSTLY PRICE WAR WITH RIVAL NIELSEN MARKETING AMERICAN EXPRESS FILED LONGAWAITED PLANS TO SPIN OFF ITS LEHMAN BROTHERS BROKERAGE FIRM THOUGH THE MOVE COMES AS BROKERAGEFIRM STOCKS HAVE SWOONED MONEY MANAGERS SAID THAT AFTER A QUICK PRICE DROP THEY WILL BUY LEHMAN SHARES FOR THE LONG HAUL SEVERAL WOOLWORTH SENIOR EXECUTIVES SOLD LARGE PARCELS OF THEIR WOOLWORTH HOLDINGS IN THE MONTHS PRIOR TO LAST WEEK'S ANNOUNCEMENT OF AN INVESTIGATION INTO ALLEGED ACCOUNTING IRREGULARITIES ACCORDING TO SEC FILINGS BUCK CONSULTANTS MADE AN AUDACIOUS BID TO ACQUIRE TOWERS PERRIN A MAJOR MANAGEMENT CONSULTING FIRM THAT IS MORE THAN FOUR TIMES BUCK'S SIZE BUCK WAS IMMEDIATELY REBUFFED SMITH BARNEY SHEARSON HIRED TWO MORGAN STANLEY MANAGING DIRECTORS CONTINUING ITS TALENT RAID OF THE FIRM THEIR DEPARTURES BRING TO ABOUT 15 THE NUMBER OF MORGAN INVESTMENT BANKERS WHO HAVE FOLLOWED EXMORGAN PRESIDENT ROBERT GREENHILL TO SMITH BARNEY IN THE PAST NINE MONTHS USAIR GROUP LAUNCHED A YEARROUND LOWERFARE STRUCTURE FOR TRAVEL BETWEEN EASTERN CITIES AND FLORIDA IN AN EFFORT TO PROTECT THAT KEY MARKET CONTINENTAL DELTA AND OTHERS SAID THEY WOULD OFFER COMPETITIVE FARES PPG INDUSTRIES CREATED AN OFFICE OF THE CHIEF EXECUTIVE AND NAMED TO IT TWO CONTENDERS FOR THE TOP JOB IBM GAVE AN UPBEAT ASSESSMENT OF ITS NEW MAINFRAME COMPUTERS BUT SAID THAT REVENUE FROM THE MAINFRAME BUSINESS WILL CONTINUE TO FALL TOKYO STOCKS RALLIED 23 WITH THE NIKKEI INDEX SURGING 44099 TO 1956321 LONDON PRICES OVERCAME EARLY WEAKNESS AND GAINED ALMOST 1 WHILE FRANKFURT STOCKS RACED UP 12 BONDS LEHMAN BROTHERS TREASURY INDEX 511138 UP 8198 COMMODITIES OIL 1574 A BARREL OFF FIVE CENTS DOW JONES FUTURES INDEX 13990 OFF 033 SPOT INDEX 13175 OFF 175 DOLLAR 10435 YEN UP 115 17140 MARKS UP 00167 9404060091 940406 CONTINENTAL AIR TO GIVE PAY RAISES AND SOME STOCK BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON CONTINENTAL AIRLINES WHICH FROZE EMPLOYEE PAY AND THEN CUT IT WHILE IN CHAPTER 11 BANKRUPTCYLAW PROTECTION SAID THAT IT WAS RESUMING MAKING PAY INCREASES AND THAT THEY WOULD BE RETROACTIVE BUT THE COMPANY ALSO PLANS TO ELIMINATE 1000 JOBS THROUGH FURLOUGHS AND ATTRITION IN THE NEXT FEW MONTHS CURRENTLY ITS WORK FORCE TOTALS ABOUT 43000 IN ADDITION THE CARRIER SAID IT WOULD MAKE A ONETIME GRANT OF ONE MILLION SHARES OR 4 OF ITS SHARES OUTSTANDING AS PART OF AN OVERHAUL OF ITS EMPLOYEE COMPENSATION THE COMPANY SAID THAT THE NEW COMPENSATION PROGRAM WHICH MUST BE APPROVED BY SHAREHOLDERS ALSO CALLS FOR DISTRIBUTING 15 OF THE COMPANY'S PRETAX EARNINGS TO EMPLOYEES ON A PRORATA BASIS PEGGED TO SALARY IN IMPROVING EMPLOYEE PAY AND GIVING THEM A SHARE OF THE COMPANY CONTINENTAL IS FOLLOWING A TREND INITIATED BY OTHER AIRLINES WHICH HAVE GIVEN THEIR WORKERS EQUITY IN EXCHANGE FOR PAY CUTS AND WORKRULES CHANGES WHAT'S SO UNUSUAL IN CONTINENTAL'S CASE IS THAT EMPLOYEES HAVEN'T ASKED FOR A SHARE OF THE COMPANY ALTHOUGH AT LEAST ONE LABOR GROUP IS NEGOTIATING FOR A NEW CONTRACT CONTINENTAL HAS HOWEVER BEEN RESTRUCTURING ITSELF CUTTING UNPROFITABLE OPERATIONS AND STARTING UP A SHORTHAUL LOWFARE OPERATION TO COMPETE WITH SOUTHWEST AIRLINES INDEED CONTINENTAL'S ANNOUNCEMENT CAME EVEN AS THE AIRLINE ANNOUNCED A FURTHER RETRENCHING IN SOME OF ITS OPERATIONS ALONG WITH THE WORKFORCE REDUCTION THE CARRIER WHICH LAST MONTH REDUCED ITS DENVER HUB 23 TO 107 FLIGHTS SAID IT WAS REDUCING ITS WESTERN BASE FURTHER STILL TO 86 DAILY JET FLIGHTS AS OF SUMMER AND CEASING FLYING TO 10 SMALL CITIES COMMUTER FLIGHTS ALSO WILL BE CUT BACK ALTHOUGH THE COMPANY DIDN'T GIVE A NUMBER THE AIRLINE SAID THAT IT WOULD REDUCE ITS PILOT AND FLIGHTATTENDANT BASES THERE ACCORDINGLY ROBERT FERGUSON III CONTINENTAL'S CHIEF EXECUTIVE OFFICER MADE THE ANNOUNCEMENT OF THE COMPENSATION OVERHAUL AT A MEETING YESTERDAY WITH MANAGEMENT HE IS SCHEDULED TO BEGIN A TOUR OF COMPANY BASES TO EXPLAIN DETAILS TO EMPLOYEES SPECIFICALLY HE SAID THE LAST PORTION OF PAY CUTS TAKEN BY WORKERS DURING BANKRUPTCYLAW PROCEEDINGS WILL BE RESTORED AS OF JUNE 30 AT THE SAME TIME THE COMPANY WILL RESTART THE CLOCK ON ANNUAL PAY INCREASES WHICH WAS STOPPED IN NOVEMBER 1991 HALF OF THE PAY INCREASES EMPLOYEES WOULD HAVE RECEIVED WILL BE RETROACTIVELY REINSTATED IN DECEMBER THE REST NEXT MARCH MOST WORKERS ALSO WILL GET A 2 PAY INCREASE AFTER JUNE 30 AND IT WILL BE UP TO EACH LABOR GROUP TO DECIDE HOW THAT INCREASE IS APPORTIONED THE COMPANY SAID THE AIRLINE ALSO WILL START A PROFITSHARING PROGRAM A 401K PLAN WITH MATCHING COMPANY DONATION AND A STOCKPURCHASE PLAN SEPARATELY AMERICA WEST SAID ITS BOARD APPROVED AN AMENDED INVESTMENT PROPOSAL FROM AMWEST PARTNERS LP AN INVESTMENT GROUP THAT INCLUDES CONTINENTAL AND TWO OF ITS LARGEST SHAREHOLDERS THE AMENDED PROPOSAL UNDER WHICH THE GROUP WILL INVEST 2449 MILLION IN EXCHANGE FOR A 335 SHARE OF THE OWNERSHIP IN THE REORGANIZED PHOENIX CARRIER NOW HAS THE SUPPORT OF THE UNSECURED CREDITORS WHO PREVIOUSLY OBJECTED TO THE PLAN SPECIFICALLY THE INVESTMENT WILL CONSIST OF A 1149 MILLION EQUITY INVESTMENT COUPLED WITH LOANS REPRESENTED BY SENIOR UNSECURED NOTES IN A MINIMUM AMOUNT OF 100 MILLION WHICH CAN BE INCREASED TO 130 MILLION THE UNSECURED CREDITORS WILL GET 595 OF THE EQUITY AND THEY CAN RECEIVE 100 MILLION IN CASH INSTEAD FOR A PORTION OF THE SHARES ALLOCATED TO THEM CURRENT SHAREHOLDERS WILL GET 5 OF THE EQUITY PLUS WARRANTS TO BUY 62 MILLION ADDITIONAL SHARES AND HAVE A COINVESTMENT RIGHT TO BUY 16 MILLION SHARES OTHERWISE ALLOCABLE TO AMWEST PARTNERS AMWEST PARTNERS CONSISTS OF DAVID BONDERMAN CONTINENTAL'S CHAIRMAN CONTINENTAL AIR MESA AIRLINES AND FIDELITY INVESTMENTS OF BOSTON 9404060090 940406 BUSINESS BRIEF NATIONAL PIZZA CO PIZZA HUT OPERATOR TO BUY SOME OUTLETS SWITCH OTHERS NATIONAL PIZZA CO AN OPERATOR OF PIZZA HUT RESTAURANTS AGREED TO BUY 17 RESTAURANTS FROM ANOTHER FRANCHISEE AND TO EXCHANGE SEVERAL DOZEN RESTAURANTS WITH THE PIZZA CHAIN'S FRANCHISER NATIONAL PIZZA DIDN'T DISCLOSE THE SELLER OF THE 17 OUTLETS OR THE TERMS OF THE SALE IN A SEPARATE PACT WITH PIZZA HUT INC A UNIT OF PEPSICO INC NATIONAL PIZZA WILL SWAP 84 OF ITS EXISTING RESTAURANTS FOR 50 OUTLETS OWNED BY THE PEPSICO UNIT THE EXCHANGE WILL FURTHER CONCENTRATE NATIONAL PIZZA'S OPERATIONS IN THE SOUTHEAST NATIONAL PIZZA WHICH IS BASED IN PITTSBURG KAN SAID IT DOESN'T EXPECT THE SWAP TO SIGNIFICANTLY AFFECT ITS EARNINGS AS PART OF THE PACT NATIONAL PIZZA AND PIZZA HUT INC EXTENDED THEIR FRANCHISE AGREEMENT UNTIL 2010 UNDER THE EXTENSION THE EFFECTIVE ROYALTY RATE THAT NATIONAL PIZZA PAYS PIZZA HUT INC WILL INCREASE AS OF JULY 1996 TO 4 OF SALES FROM 2 9404060089 940406 ENTERPRISE LITTLE BEIJING FIRM AIMS TO BE CHINA'S DUN & BRADSTREET BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING IN A DRAB CONCRETE BUILDING ON A STREET NEAR THIS CITY'S ECONOMIC DISTRICT AN UNFAILINGLY CHEERFUL STATISTICIAN NAMED GAO YUXIAN IS METHODICALLY BUILDING THE BIGGEST DATABASE IN CHINA MR GAO THE 48YEAROLD PRESIDENT OF NEWLY FORMED ALL CHINA MARKETING RESEARCH CO IS CRUNCHING NUMBERS ON MILLIONS OF STORES FACTORIES AND FARMS DATA THAT FOR MANY YEARS WERE KEPT HIDDEN BY ONE OF THE WORLD'S MOST SECRETIVE SOCIETIES THE STATISTICS WILL BECOME THE BASIS FOR A MASSIVE INFORMATION SERVICE A SORT OF DUN & BRADSTREET ON CHINA'S INDUSTRIAL CONCERNS ANY SIMILARITY BETWEEN G&Z AND D&B ENDS THERE HOWEVER FOR ONE THING THE DUN & BRADSTREET EMPIRE BOASTS A DATA BANK ON 32 MILLION COMPANIES WORLDWIDE INCLUDING 10 MILLION BUSINESSES IN THE US AND VIRTUALLY NONE IN CHINA AND WHILE MR GAO TOGETHER WITH THE COMPANY'S VICE GENERAL MANAGER A STATISTICIAN NAMED ZHOU JIANG AND ALL CHINA'S STAFF OWN 20 OF THE COMPANY BEIJING'S STATE STATISTICAL BUREAU OWNS THE REST THIS MEANS MR GAO MUST RUN HIS SHOP ON A SHOESTRING SO FAR MR GAO SAYS THE CHINESE GOVERNMENT HAS INVESTED THE EQUIVALENT OF ABOUT 120000 HIS BIGGEST PATRON MAY BE AMERICAN TELEPHONE & TELEGRAPH CO WHICH IS ASSISTING THE DAUNTING EFFORT TO CREATE A DATABASE AND HOPES TO MARKET THE RESULTS TO FOREIGN COMPANIES DESPERATE FOR RESEARCH ON THE WORLD'S BIGGEST EMERGING MARKET ALL CHINA'S HEADQUARTERS IS A TINY SOLVENTSMELLY CELL WITH BARE PIPES CONCRETEBLOCK WALLS AND EXPOSED WIRING THE FLEDGLING FIRM SHARES THE BUILDING WITH A DENTALSUPPLY COMPANY IN THE BASEMENT A DOZEN MEN AND WOMEN SIT IN CUBICLES TYPING ON STRIPPEDDOWN DESKTOP COMPUTERS MR GAO'S JOURNEY TO ALL CHINA WAS A CIRCUITOUS ONE HE BRIGHTLY RECOUNTS HOW THE CULTURAL REVOLUTION FORCED HIM TO END HIS EDUCATION AT HIGH SCHOOL IN 1966 AND WORK ON A VILLAGE FARM IN JILIN PROVINCE AFTER SEVEN YEARS ON THE FARM MR GAO WAS TRANSFERRED TO A BIG AUTO FACTORY IN CHANGCHUN CITY THE JILIN PROVINCE'S CAPITAL IT WASN'T UNTIL 1978 WHEN HE WAS IN HIS 30S THAT MR GAO WAS ALLOWED TO RESUME HIS EDUCATION FINALLY DRAWING A MASTER'S DEGREE IN STATISTICS FROM CHINESE PEOPLE'S UNIVERSITY IN 1982 UNTIL ABOUT TWO YEARS AGO MR GAO WAS JUST ANOTHER BUREAUCRAT IN CHINA'S VAST STATISTICAL BUREAUCRACY OF TWO MILLION DATAGATHERERS BITTEN BY THE ENTREPRENEURIAL BUG HE CONVINCED HIS BOSSES AT THE STATE STATISTICAL BUREAU TO LET HIM SET UP ALL CHINA AND TURN IT INTO A BUSINESS HE NOW HAS PAINSTAKINGLY DETAILED CREDIT HISTORIES AND PRODUCTION REPORTS ON SOME 400000 COMPANIES AND OTHER INDUSTRIAL ENTERPRISES IN CHINA BY NEXT YEAR HE HOPES TO HAVE COMPUTERIZED RECORDS ON THREE MILLION OF THE COUNTRY'S 36 MILLION ENTERPRISES EACH DAY MR GAO'S EMPLOYEES PORE OVER DATA GLEANED FROM THOUSANDS OF LOCAL STATISTICAL BUREAUS SCATTERED THROUGHOUT CHINA'S 30 PROVINCES CHINA'S OBSESSION WITH COUNTING AND CLOCKING EVERY ASPECT OF GOVERNMENTCONTROLLED BUSINESSES FAVORS MR GAO'S NEW FIRM ALL ENTERPRISES MUST SUPPLY LOCAL BUREAUCRATS WITH DETAILED QUARTERLY STATEMENTS ON FINANCES PRODUCTION EMPLOYMENT AND OTHER DATA THE INFORMATION EVENTUALLY MAKES ITS WAY TO THE STATE BUREAU WHICH SELLS PILES OF IT TO ALL CHINA THE INFORMATION ARRIVES ON PAPER DOCUMENTS NEATLY FILLED OUT IN CHINESE CHARACTERS MR GAO'S WORKERS THEN TYPE THE REAMS OF ENTRIES INTO THEIR TAIWANESEMADE PERSONAL COMPUTERS THE RESULT PROVIDES A CLOSE LOOK AT THOUSANDS OF INDIVIDUAL OFFICES AND FACTORIES ANITA YUAN THE COMPANY'S DATASERVICE MANAGER DEMONSTRATES THE EMERGING DATABASE BOOTING UP HER PC MS YUAN CHOOSES TRADES QUERY AND SEARCHES LISTINGS FOR INDIVIDUAL INDUSTRIES FREEZE EGG PRODUCTION AND CITRIC ACID PROCESSING LIGHT UP ON HER SCREEN SHE TAPS A COUPLE OF MORE TIMES TO GET A BREAKOUT OF EMPLOYEES FINANCES AND PRODUCTIVITY NUMBERS ON THE HONG YU FERMENT FACTORY DONG KUNG DISTRICT FIDDLING WITH THE DISK DRIVE SHE DEMONSTRATES THAT THE INFORMATION IS ALSO AVAILABLE IN CHINESE MESSRS GAO & ZHOU AIM TO TURN THESE NUMBERS INTO A MORE USEFUL INFORMATION SERVICE FOR THE NEW CHINA MR GAO PROUDLY PULLS OUT A CONTRACT HE HAS JUST SIGNED WITH AMOCO CORP TO PROVIDE DETAILED MARKET RESEARCH ON CRUDEOIL PRODUCTION IN NINE EASTERN PROVINCES ANOTHER BIG CLIENT IS PROCTER & GAMBLE CO WHICH WANTS DATA ON SOAP PRODUCERS AND CONSUMERS IN CHINA OUR PEOPLE FOUND THAT THE QUALITY OF THESE LOCAL RESEARCHERS IS VERY HIGH A P&G SPOKESMAN SAYS AT&T CAME ACROSS GAO & ZHOU LAST YEAR WHEN SHAOMIN LI A CHINESEBORN DEMOGRAPHER FOR AT&T BELL LABORATORIES IN THE US TOOK A LEAVE TO TEACH IN HONG KONG AND LOBBY THE CHINESE GOVERNMENT TO LET HIS FATHER LEAVE CHINA THE FATHER A PROMINENT INTELLECTUAL HAD BEEN BLOCKED FROM EMIGRATING WHILE ON HIS PERSONAL MISSION THE AT&T DEMOGRAPHER CAME ACROSS THE HUGE DATA PROJECT OF MR GAO THEY HAD MET IN THE LATE 1980S WHEN MR LI WAS RESEARCHING CHINA'S FERTILITY RATE AND MR GAO HAD PROVIDED NUMBERS TO HELP HIM SHAOMIN LI IS BACK AT BELL LABS AND HIS FATHER GOT PERMISSION TO LEAVE CHINA FOR AT&T A BUSINESS PARTNERSHIP WAS BORN TODAY BELL LABS IS HELPING MR GAO PLAN THE NETWORKING SYSTEM TO LET BUSINESS CUSTOMERS THROUGHOUT CHINA EVENTUALLY TAP IN TO THE DATA BY COMPUTER BELL LABS THROUGH A RESEARCH UNIT CALLED EASTGATE SERVICES ALSO IS FORMING A JOINT VENTURE WITH ALL CHINA THAT WILL HAVE EXCLUSIVE WORLDWIDE MARKETING RIGHTS TO THE TIGHTLY CONTROLLED DATA BIG COMPANIES LIKE COKE OR PEPSI CAN AFFORD TO SEND 30 PEOPLE INTO CHINA TO DO THEIR MARKET RESEARCH SAYS SAL CORDO EASTGATE'S EXECUTIVE DIRECTOR A LOT OF MEDIUMSIZE FIRMS COULD USE THIS SERVICE TO NAVIGATE CHINA'S LEGAL AND BUREAUCRATIC NETWORK MR GAO IS RELYING HEAVILY ON BELL LABS TO GUIDE ALL CHINA BEYOND MERE DATA STORAGE AND INTO THE FULLBLOWN INFORMATION AGE WHICH WILL DEMAND MUCH MORE SOPHISTICATED DATA MANIPULATION AND TRANSMISSION AT&T WANTS TO BUILD ITS INFORMATION SUPERHIGHWAY MR GAO SAYS ADDING ENTHUSIASTICALLY WE'LL BE THE BIGGEST SHOP ALONG ITS ROAD 9404060088 940406 INSIDER TRADING SPOTLIGHT BASED ON ACTUAL TRANSACTION DATES IN REPORTS RECEIVED THROUGH FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9404060087 940406 TEXAS JOURNAL LETTERS TO THE EDITOR ANOTHER IDEA FOR SAVING MONEY REGARDING YOUR MARCH 23 ARTICLE ABOUT THE TEXAS INCENTIVE AND PRODUCTIVITY COMMISSION'S AWARDING STATE EMPLOYEES BONUSES FOR MONEYSAVING IDEAS LET'S SEE IF YOU CAN REDUCE THE SALARY OF THE GOVERNOR THE ARTICLE REMINDED ME OF MY EXPERIENCE I AM A STATE EMPLOYEE AND WHEN I FOUND OUT THAT I COULD QUALIFY FOR A BONUS BY SUGGESTING A WAY FOR THE STATE TO SAVE MONEY I PROMPTLY SENT IN AN IDEA WHILE NOBODY DENIED THAT MY IDEA WOULD SAVE MONEY NOBODY COULD DENY IT ALL I GOT FOR MY TROUBLE WAS A FEW NODS AND SMILES MY IDEA CUT THE BONUS BY 20 9404060086 940406 LEISURE & ARTS BOOKSHELF HOW BOLSHEVISM BECAME TOTALITARIANISM BY JOSHUA RUBENSTEIN FOUR YEARS AGO MARTIN MALIA THEN A PROFESSOR OF HISTORY AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY PUBLISHED A STARTLING ESSAY ENTITLED TO THE STALIN MAUSOLEUM IN DAEDALUS MAGAZINE WRITING IN DECEMBER 1989 WHEN THE WORLD SEEMED MESMERIZED BY THE PERSONALITY AND ACHIEVEMENTS OF MIKHAIL GORBACHEV MR MALIA REFUSED TO JOIN THE EUPHORIA PRESCIENTLY MR MALIA BEGAN HIS ESSAY WITH ALEXIS DE TOCQUEVILLE'S OFTQUOTED OBSERVATION THAT THE MOST DANGEROUS TIME FOR A BAD GOVERNMENT IS WHEN IT STARTS TO REFORM ITSELF BY THE SUMMER OF 1991 MR GORBACHEV FOUND HIMSELF THE VICTIM OF A FAILED LASTDITCH COMMUNIST COUP HE PHYSICALLY SURVIVED BUT HIS POLITICAL CAREER WAS OVER THE REGIME AND THE EMPIRE UNRAVELED COMPLETELY MR MALIA HAS NOW EXPANDED HIS ESSAY INTO A FULLLENGTH STUDY THE SOVIET TRAGEDY A HISTORY OF SOCIALISM IN RUSSIA 19171991 FREE PRESS 575 PAGES 2495 IS NOT A WORK OF ORIGINAL HISTORICAL RESEARCH IT IS RATHER A MAGISTERIAL WORK OF ANALYSIS AND INTERPRETATION THAT SEEKS TO EXPLAIN THE DYNAMICS OF SOVIET HISTORY WITHIN THE CLAIMS THE BOLSHEVIKS SET FOR THEMSELVES AT THE OUTSET MR MALIA POSES A FUNDAMENTAL QUESTION DID THE EXPERIMENT BECOME TOTALITARIAN DESPITE IT BEING SOCIALIST OR BECAUSE IT WAS SOCIALIST HE ARGUES THAT LENIN'S PURPOSES MOST NOTABLY THE ABOLITION OF PRIVATE PROPERTY NECESSITATED THE DESTRUCTION OF CIVIL SOCIETY AND ENSURED A BRUTAL DETERMINATION TO CONTROL ALL ASPECTS OF ECONOMIC SOCIAL POLITICAL AND CULTURAL LIFE NOT ALL HISTORIANS ACCEPT MR MALIA'S CONTENTION THAT BOLSHEVIK METHODS INEVITABLY FLOWED FROM LENIN TO STALIN AT LEAST TWO GENERATIONS OF SCHOLARS HAVE ARGUED OVER WHETHER THE MASSIVE CRIMES OF THE STALIN ERA SHOULD BE SEEN AS THE UNAVOIDABLE RESULT OF LENIN'S OWN DICTATORIAL IDEOLOGY OR AS A BETRAYAL OF HIS REVOLUTIONARY HERITAGE IN PROBING THESE CONTENDING INTERPRETATIONS MR MALIA CONCLUDES THAT THE COMMUNIST PARTY HAD NO ALTERNATIVE BUT TO ADOPT STALIN'S PROGRAM EVEN AS COMPELLING A FIGURE AS NIKOLAI BUKHARIN WHO MANY INCLUDING MR GORBACHEV HAVE CLAIMED POSED A GENUINE REALISTIC AND HUMANE ALTERNATIVE TO STALIN HOLDS LITTLE ATTRACTIVENESS TO MR MALIA GIVEN THE ECONOMIC AND POLITICAL CHALLENGES OF THE 1920S IS IT REALLY POSSIBLE TO BELIEVE THAT SUCH A DETERMINED PARTY WOULD HAVE ACCEPTED COMPROMISE WITH ITS CLASS ENEMIES IN ANY EVENT BUKHARIN'S PROPOSALS FOR A MORE GRADUAL SYSTEM OF COLLECTIVIZATION AND LESS RUTHLESS COERCION DID NOT CONFORM TO THE PARTY'S IDEOLOGICAL MOMENTUM AND HE SOON FELL OUT OF CONTENTION FOR CONTROL OF THE PARTY IN 1938 HE WAS EXECUTED BY THEN STALIN'S POWER WAS SUCH THAT HE COULD LIQUIDATE ANYONE WHO MIGHT CONCEIVABLY ARTICULATE OR EVEN SYMBOLIZE AN ALTERNATIVE TO HIS POLICIES WHILE MR MALIA IS UNSPARING IN HIS JUDGMENTS HE HANDLES THE HISTORICAL RECORD WITH SUITABLE CAUTION FOR EXAMPLE HE REFUSES TO ACCEPT THE WIDESPREAD BUT UNFOUNDED BELIEF THAT STALIN ORDERED THE MURDER IN 1934 OF ONE OF HIS HENCHMAN THE LENINGRAD PARTY CHIEF SERGEI KIROV THOUGH HE DID USE THE ASSASSINATION TO JUSTIFY A SERIES OF TERRIBLE PURGES AND ON YALTA TOO MR MALIA DISMISSES THE CONTENTION THAT THE ALLIED CONFERENCE IN 1945 REPRESENTED EUROPE'S AND PARTICULARLY AMERICA'S NAIVE SURRENDER OF EASTERN EUROPE TO STALIN WE CANNOT IGNORE HE ARGUES THE POLITICAL AND STRATEGIC REALITY THAT EXISTED WHEN THE RED AMY PUSHED HITLER'S FORCES BACK INTO GERMANY IT WAS A TRIUMPH THAT REQUIRED MORE THAN 40 YEARS TO REVERSE BY HIS DEATH IN 1953 STALIN HAD CREATED A SYSTEM THAT HIS IMMEDIATE HEIRS COULD NEITHER DEFEND NOR DISMANTLE MR MALIA'S OVERVIEW OF KHRUSHCHEV'S AND BREZHNEV'S YEARS IN POWER ADDS LITTLE TO OUR UNDERSTANDING OF THE HISTORICAL RECORD BUT THE BOOK REASSERTS ITS PASSION WITH MR GORBACHEV'S ACCESSION TO POWER EVEN NOW IT IS STILL ASTONISHING HOW FRAGILE THE WHOLE BOLSHEVIK EDIFICE TURNED OUT TO BE MR GORBACHEV'S INITIAL MODERATE REFORMS PROVOKED UNCONTROLLABLE EXPECTATIONS LIKE THE SORCERER'S APPRENTICE MR MALIA POINTS OUT GORBACHEV WOULD SPEND THE REST OF HIS TIME IN POWER TRYING TO RIDE THE DELUGE HE HAD UNLEASHED HE COULD NOT LINK POLITICAL CHANGES WITH ECONOMIC REFORM BECAUSE HE REMAINED A TRUE BELIEVER AND BECAUSE THE ECONOMY WAS AND REMAINS SUCH AN UNMANAGEABLE DISASTER EVERYTHING WOULD HAVE TO BE DONE AT ONCE MR MALIA CONCLUDES THUS CREATING AN IMPOSSIBLE SITUATION WHERE EVERYTHING LOGICALLY HAD TO BE DONE FIRST TODAY WITH BORIS YELTSIN'S AUTHORITY UNDER FIRE AND THE SUCCESS OF RUSSIAN NATIONALIST PARTIES IN DECEMBER'S ELECTIONS IT IS NECESSARY TO WONDER IF RUSSIA WILL SUCCUMB TO AN AUTHORITARIAN TEMPTATION MR MALIA HIMSELF HOPES THAT RUSSIA'S POPULATION NOW BROADLY URBAN AND LITERATE HAS BEEN INOCULATED AGAINST ALL IDEOLOGICAL POLITICS BUT HE FEARS THE SHORTCUT OF AUTHORITARIAN RULE TO PULL THE ECONOMY TOGETHER ONLY ONE CONCLUSION IS CERTAIN 70 YEARS OF FAILED BOLSHEVIK RULE ARE NOT A FOUNDATION FOR LIBERTY OR PROSPERITY MR RUBENSTEIN IS THE NORTHEAST REGIONAL DIRECTOR OF AMNESTY INTERNATIONAL USA 9404060085 940406 WHO'S NEWS KMART PAID ANTONINI BASE SALARY LINKED PAY TO PERFORMANCE KMART CORP WHICH HAD A LOSS OF 119 BILLION FOR THE YEAR ENDED JAN 26 PAID CHAIRMAN JOSEPH E ANTONINI ONLY HIS BASE SALARY OF 893000 LAST YEAR AND TIED HIS LONGTERM INCENTIVE PAY MORE CLOSELY TO THE DISCOUNT RETAILER'S PERFORMANCE MR ANTONINI'S OVERALL COMPENSATION DROPPED 39 BECAUSE HE HAD RECEIVED A BONUS OF 604901 THE PRIOR YEAR ALONG WITH WHAT WAS THEN HIS BASE PAY OF 850000 ACCORDING TO THE TROY MICH COMPANY'S PRELIMINARY PROXY STATEMENT HE DIDN'T RECEIVE AN ANNUAL INCENTIVE BONUS BECAUSE OF THE DIFFICULT YEAR AND THE FAILURE TO ACHIEVE THE PERFORMANCE GOALS SET BY DIRECTORS ONLY FIVE OF KMART'S 32 OFFICERS RECEIVED BONUSES LAST YEAR KMART DIRECTORS ALSO LINKED MR ANTONINI'S LONGTERM INCENTIVE COMPENSATION MORE CLOSELY TO KMART'S PERFORMANCE BY GRANTING HIM MORE STOCK OPTIONS AND ELIMINATING HIS RESTRICTED SHARE PAYOUTS THE 52YEAROLD MR ANTONINI GOT OPTIONS TO BUY 125000 COMMON SHARES AT AN EXERCISE PRICE OF 2406 KMART SHARES CLOSED YESTERDAY AT 1825 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FOR FISCAL 1993 MR ANTONINI RECEIVED AN AWARD OF 30000 RESTRICTED SHARES VALUED AT 663875 AND WAS GRANTED OPTIONS TO BUY 20000 SHARES SEPARATELY KMART ASKED SHAREHOLDERS TO INCREASE THE NUMBER OF AUTHORIZED COMMON SHARES TO THREE BILLION FROM 15 BILLION TO AFFECT PREVIOUSLY ANNOUNCED PLANS TO SELL MINORITY STAKES IN FOUR OF ITS SPECIALTYRETAIL UNITS THE COMPANY SAID IT WOULD REDESIGNATE HALF THE SHARES AS KMART STOCK THE OTHER HALF WOULD BE AVAILABLE FOR DESIGNATION AS KMART STOCK OR FOR ANY OF THE FOUR NEW SERIES OF SPECIALTYRETAIL SHARES A SPOKESMAN SAID THE COMPANY HOPES TO LAUNCH THE FOUR INITIAL PUBLIC OFFERINGS AS SOON AS IT IS PRACTICAL WITH RESPECT TO THE MARKET AND OTHER CONDITIONS 9404060084 940406 NATIONAL MEDICAL IS SEEN REDUCING ITS WORK FORCE SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC SAID IT HAS BEGUN A COMPREHENSIVE REVIEW OF ITS CORPORATE OPERATIONS THAT IS EXPECTED TO LEAD TO SIGNIFICANT STAFF REDUCTIONS THE REVIEW WILL INVOLVE A SUBSTANTIAL RETHINKING OF JOB FUNCTIONS THAT COULD RESULT IN A SIGNIFICANT REDUCTION IN OUR WORK FORCE A SPOKESWOMAN SAID NATIONAL MEDICAL HAS A TOTAL OF ABOUT 20000 EMPLOYEES DOWN SHARPLY FROM 50000 TWO YEARS AGO THE COMPANY SAID IT HAS ABOUT 900 EMPLOYEES IN ITS CORPORATE OFFICES INCLUDING 800 AT ITS MAIN OFFICES IN SANTA MONICA THE OTHER CORPORATE STAFF PEOPLE WORK IN REGIONAL OFFICES IN DALLAS AND IN TAMPA FLA THE LATEST STEPS FOLLOW THE COMPANY'S RECENT ANNOUNCEMENT OF AN AGREEMENT TO SELL MOST OF ITS PSYCHIATRICCARE HOSPITALS TO CHARTER MEDICAL CORP NATIONAL MEDICAL SOLD MOST OF ITS REHABILITATION HOSPITALS IN JANUARY THE PLANNED CORPORATE STREAMLINING WILL SHRINK OVERHEAD COSTS SO THE COMPANY CAN COMPETE BETTER WITH OTHER ACUTECARE HOSPITAL COMPANIES 9404060083 940406 CORRECTIONS & AMPLIFICATIONS LLOYD CUTLER IS THE NEW WHITE HOUSE COUNSEL IN FRIDAY'S ARTICLE ON PRESIDENT CLINTON'S STAFF THE NEW COUNSEL WAS INCORRECTLY IDENTIFIED AS LYNN CUTLER 9404060082 940406 INTERNATIONAL BRIEF VOLKSWAGEN AG AUTO MAKER PLANS MORE CUTS IN ITS MANAGEMENT LEVELS VOLKSWAGEN AG SAID IT PLANS TO ELIMINATE ENTIRE MANAGEMENT LEVELS AS PART OF ITS MONEYSAVING EFFORTS FERDINAND WACHS A SPOKESMAN FOR THE GERMAN AUTO MAKER TOLD THE WELT AM SONNTAG NEWSPAPER THAT VW ALREADY HAS REDUCED THE NUMBER OF MANAGEMENT LEVELS TO FOUR FROM EIGHT THE NUMBER OF EMPLOYEES HAS SHRUNK BY MORE THAN 200 TO ABOUT 1000 AND A FURTHER DECLINE IS EXPECTED THIS YEAR IN ADDITION VW HAS REDUCED SPECIAL ANNUAL PAYMENTS AND BONUSES BY AN AVERAGE OF 50 THE HANNOVERSCHER ALLGEMEINE ZEITUNG NEWSPAPER REPORTED 9404060081 940406 CREDIT RATINGS BOSTON EDISON CO STANDARD & POOR'S CORP REVISED ITS OUTLOOK FOR BOSTON EDISON CO TUESDAY FROM STABLE TO NEGATIVE BECAUSE OF CONCERNS ABOUT BOSTON EDISON'S WILLINGNESS AND ABILITY TO FOLLOW THROUGH ON AN EQUITY SALE GIVEN THE WEAKNESS AND VOLATILITY IN THE CURRENT EQUITY MARKETS BOSTON EDISON AN ELECTRICAL UTILITY ANNOUNCED PLANS LAST FALL TO ISSUE 25 MILLION SHARES OF STOCK TO REDUCE SHORTTERM DEBT BOSTON EDISON ISSUED 366000 SHARES LAST YEAR THROUGH A DIVIDEND REINVESTMENT PLAN AND INTENDS TO ISSUE 400000 MORE SHARES THROUGH THE SAME PLAN THIS YEAR 9404060080 940406 COMING UP SHORT PUBLIC PENSION PLANS ARE SO UNDERFUNDED THAT TROUBLE IS LIKELY MANY STATES AND LOCALITIES MAY HAVE TO CUT BENEFITS OR RAISE TAXES SHARPLY SOME PEOPLE DELAY RETIRING BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL DALE BARRY DREAMED OF RETIRING AT AGE 60 FROM HIS STATE JOB IN MAINE HE AND HIS WIFE WOULD FLEE THE HARSH WINTERS MOVE TO ARIZONA AND GET AS MUCH OUT OF RETIREMENT AS WE COULD BEFORE THE REAL MEDICAL PROBLEMS HIT BUT WELL AFTER HIS 60TH BIRTHDAY MR BARRY IS STILL WORKING DESPITE HAVING HAD CANCER SURGERY AND A HEART ATTACK THAT'S BECAUSE MAINE LAWMAKERS ATTACKED THE STATE'S 26 BILLION PENSIONACCOUNT UNDERFUNDING BY POSTPONING RETIREMENT FOR HIM AND 21000 OTHER PUBLIC EMPLOYEES MR BARRY WHO WORKS AS A VETERANS' COUNSELOR HAS BECOME A VETERAN HIMSELF IN A NEW KIND OF WAR BETWEEN TAXPAYERS WHO ARE SICK OF HIGH TAXES AND PUBLIC EMPLOYEES WHO CLAIM TO HAVE GIVEN UP A CHANCE AT HIGHER PAY IN THE PRIVATE SECTOR FOR THE SECURITY OF A GOVERNMENT JOB ALTHOUGH RELATIVELY FEW PEOPLE ARE AWARE OF THE PROBLEM STATE AND LOCAL PENSION PLANS ACROSS THE COUNTRY ARE MORE THAN 125 BILLION SHORT OF THE MONEY THEY WILL NEED TO MEET THEIR PENSION PROMISES COUNTING IN FEDERAL CIVILIAN AND MILITARY EMPLOYEES THE UNDERFUNDING THE GAP BETWEEN WHAT HAS BEEN SALTED AWAY AND WHAT WILL BE REQUIRED IS 124 TRILLION THAT'S 23 TIMES THE MORE WIDELY PUBLICIZED UNDERFUNDING OF PRIVATESECTOR PLANS THAT LIKE MAINE'S PAY FIXED PENSIONS PUBLICPENSION UNDERFUNDING WILL BE THE HEALTHINSURANCE CRISIS OF THE NEXT CENTURY PREDICTS DENNIS SPICE WHO HEADS AN UNDERFUNDED ILLINOIS STATE PLAN TO MEET OBLIGATIONS TO PUBLIC EMPLOYEES WHY NOT SIMPLY RAISE TAXES THAT'S STARTING TO HAPPEN BUT AS TAXPAYERS DISCOVER THE SIZE OF THE PENSIONFUNDING BILL THEY ARE BEGINNING TO REBEL THE TWORD IS USED AS A POLITICAL CLUB SAYS DALE MCCORMICK A DEMOCRATIC STATE SENATOR IN MAINE SO RELUCTANT TO HIT UP TAXPAYERS FOR THE FULL BILL MANY POLITICIANS ARE SLASHING BENEFITS BUT IN SOME DILATORY STATES THE UNDERFUNDING PROBLEM MAY WORSEN A PRIME EXAMPLE IS NEW JERSEY WHERE GOV CHRISTINE TODD WHITMAN IS HOPING TO SAVE ABOUT 650 MILLION THROUGH JULY 1995 BY TINKERING WITH RETIREMENTPLAN FUNDING IN COVENTRY RI FINANCE DIRECTOR BARRY YEAW STARES BLEAKLY OUT AN OFFICE WINDOW AT PITTED ROADS AND WORNOUT DUMP TRUCKS THE POLICE PENSION FUND HAS JUST 840000 SET ASIDE TO MEET 122 MILLION OF PENSION OBLIGATIONS THE CITY OF 32000 RAISED REALESTATE TAXES 3 THIS YEAR AND MORE THAN DOUBLED ITS PENSION CONTRIBUTION TO 495300 BUT ITS 36 RETIRED OFFICERS ARE ALREADY DRAWING 396000 A YEAR WE DON'T KNOW HOW MUCH MORE THE TAXPAYER IS GOING TO TAKE MR YEAW SAYS NOTING RISING FORECLOSURE SALES OF TAXDELINQUENT REAL ESTATE MORE TAX BILLS PAID WITH BOUNCED CHECKS FEWER HIGHPAYING JOBS WITH THE PENTAGON BUDGET SQUEEZED THE SUBMARINEBUILDING WORK FORCE HAS SHRUNK AT THE NEARBY ELECTRIC BOAT DIVISION OF GENERAL DYNAMICS CORP SO COVENTRY IS PRODDING ITS 50MEMBER POLICE FORCE FOR PENSION GIVEBACKS IT HOPES TO SCALE BACK A PROVISION THAT HAS ALLOWED OFFICERS TO WORK HEAVY OVERTIME IN THEIR FINAL YEAR AND GET BENEFITS BASED ON THE INCREASED INCOME MR YEAW WISHES THAT HIS PREDECESSORS A DECADE AGO HAD NEVER MADE SUCH CONCESSIONS TO AVOID CASH PAY RAISES BUT THE OFFICERS CONTEND THAT THE PROBLEM IS THE TOWN'S OWN FAULT IF THEY'D FUNDED IT PROPERLY OVER THE YEARS IT WOULDN'T HAVE COME UP AND BIT THEM ALL AT ONCE SAYS KURT WALLACE A 42YEAROLD DETECTIVE WITH 10 YEARS ON THE FORCE ADDS MARK CURRIER ANOTHER VETERAN OFFICER THEY WANT US TO FIX WHAT THEY BROKE STATE LAWMAKERS RELUCTANT TO OFFEND ALL 41000 EMPLOYEES INVOLVED APPROVED LAST SUMMER CUTBACKS LESS SWEEPING THAN THOSE GOV MCKERNAN PROPOSED THEY SAVED THE HARSHEST CUTS FOR WORKERS WITH LESS THAN 10 YEARS' SENIORITY AT THE 10YEAR MARK WORKERS BECOME VESTED LEGALLY ENTITLED TO A CURRENT OR FUTURE RETIREMENT BENEFIT NOW WORKERS SHORT OF 10 YEARS SUCH AS MR BARRY OF LEWISTON HAVE TO STAY TWO YEARS LONGER ON THE JOB THAN MORESENIOR COLLEAGUES FOR SIMILAR PAYOUTS ALL EMPLOYEES NOW CONTRIBUTE MORE MONEY TOWARD PENSIONS 765 OF THEIR PAY UP FROM 65 IT WAS A CHOICE BETWEEN A COMPLETELY EVIL NOXIOUS SOLUTION AND A MERELY EVIL SOLUTION SEN MCCORMICK SAYS THE MAINE STATE EMPLOYEES ASSOCIATION SUED CONTENDING THAT BENEFITS COULDN'T BE CHANGED UNILATERALLY AND WON IN A STATE COURT BUT MAINE'S SUPREME COURT DISAGREED HOLDING THAT THE LAW CREATING A RETIREMENT SYSTEM CARVED OUT GENERAL POLICY PRINCIPLES NOT IMMUTABLE CONTRACTUAL RIGHTS AND THE US SUPREME COURT DECLINED TO HEAR A UNIONBACKED APPEAL ALL THAT DOESN'T COMFORT LORRAINE AUGER A 57YEAROLD CLERKTYPIST WHO MISSED BEING ON THE RIGHT SIDE OF MAINE'S 10YEAR CLIFF BY MONTHS THEY RENEGED ON US SHE SAYS NOTING THAT A PERSONNEL MANAGER INTERVIEWING HER FOR THE JOB HAD TOUTED THE RETIREMENT PACKAGE MRS AUGER SAYS SHE MIGHT HAVE EARNED MORE IN THE PRIVATE SECTOR BUT THE STATE'S WHOLE BENEFITS PACKAGE HAD SEEMED SO TERRIFIC IT REALLY ATTRACTED ME TO THE JOB NOT LONG AGO SHE AND HER HUSBAND WERE PLANNING TO RETIRE TO VENICE FLA NOW IT'S TOTALLY DIFFERENT SHE SAYS SINCE THE POLITICIANS REDUCED THE BENEFITS ONCE SHE ADDS WHO KNOWS WHAT'S IN THE FUTURE IN THE PRIVATE SECTOR OF COURSE MANY EMPLOYERS ALREADY ARE FORCING RETIREES TO FOOT MORE MEDICAL BILLS AND MANY COMPANIES HAVE SWAPPED FIXEDPAYMENT PLANS SUCH AS MAINE'S IN FAVOR OF ONES IN WHICH THE EMPLOYER MAKES ANNUAL CONTRIBUTIONS AND THE EMPLOYEE ASSUMES THE INVESTMENT RISK IN ANY PENSIONSHUFFLING MANY STATE AND LOCAL EMPLOYEES GET LESS PROTECTION THAN DO MANY PRIVATE EMPLOYEES BECAUSE THE EMPLOYEE RETIREMENT INCOME SECURITY ACT THE FEDERAL LAW KNOWN AS ERISA DOESN'T APPLY TO PUBLIC PLANS A COMPANY CANCELING A PLAN MUST COMPENSATE WORKERS FOR ALL EARNEDINCOME BENEFITS UP TO THAT POINT PERHAPS BY BUYING THEM ANNUITIES SAYS BRONISLAW GRALA A RETIREMENTLAW EXPERT AND LAWYER AT CADWALADER WICKERSHAM & TAFT IN NEW YORK ERISA PROHIBITS THE SORT OF INCOMEBENEFIT EROSION THAT MAINE LEGISLATED FOR NONVESTED EMPLOYEES MR GRALA NOTES ERISA ALSO PROTECTS PRIVATESECTOR EMPLOYEES BY SPECIFYING MINIMUM FUNDING FOR PENSION PLANS AS A RESULT JUST 5 OF ALL PRIVATE PLANS HAVE LESS THAN 75 OF THE ASSETS NEEDED TO MEET LIABILITIES SAYS OLIVIA MITCHELL EXECUTIVE DIRECTOR OF THE PENSION RESEARCH COUNCIL AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL IN CONTRAST NEARLY 30 OF PUBLIC PLANS ARE LESS THAN 75 FUNDED SHE ESTIMATES AT THE WASHINGTON DC FRATERNAL ORDER OF POLICE HEADQUARTERS VICE CHAIRMAN RONALD ROBERTSON LAMBASTES THE NOTION THAT HE SHOULD HELP LOCAL POLITICIANS SOLVE A 49 BILLION UNFUNDEDLIABILITY PROBLEM BY GOLLY WHEN YOU RISK YOUR LIFE FOR 20 YEARS IT'S NOT TOO MUCH TO ASK THAT PEOPLE TAKE CARE OF YOU IN YOUR OLD AGE AS PROMISED THE 55YEAROLD DETECTIVE SAYS BUT OUT IN THE PRECINCTS MANY OFFICERS SEEM RESIGNED TO THE IDEA AT THE NARCOTICS AND SPECIAL INVESTIGATIONS DIVISION STEVE FINKELBERG A 47YEAROLD DETECTIVE SAYS HEY I'VE BEEN ASSAULTED THREE TIMES I'VE BEEN CUT BUT IN ALL HONESTY OFFICERS KNOW SOMETHING HAS TO BE DONE BECAUSE THERE ARE MAJOR MONEY PROBLEMS THE DISTRICT'S RETIREMENT PLANS FOR POLICE FIREFIGHTERS TEACHERS AND JUDGES NOW HOLD JUST ONETHIRD THE NEEDED ASSETS MOREOVER MAYOR SHARON PRATT KELLY SEEKING TO CLOSE A LARGE BUDGET GAP TRIED TO PERSUADE THE DC COUNCIL TO PUT OFF 230 MILLION OF PENSION CONTRIBUTIONS SCHEDULED TO BE MADE BY OCTOBER SHE FAILED BUT MORE PROBLEMS LOOM ANNUAL PENSION PAYMENTS RECENTLY REPRESENTED ABOUT 8 OF DISTRICT BUDGET OUTLAYS AND THE FIGURE WOULD HAVE BEEN HIGHER IF CONGRESS WEREN'T CONTRIBUTING 52 MILLION A YEAR THAT SUBSIDY ENDS IN 2004 WHEN THE DISTRICT'S RETIREMENT COSTS MIGHT WELL NEARLY DOUBLE TO 15 OF THE BUDGET MATCHING THE SHARE NOW GOING TO THE SCHOOL SYSTEM SO DO YOU PAY THE CURRENT COPS OR THE RETIRED COPS OR DO YOU TAX PEOPLE SO HIGH THEY'LL MOVE OUT OF TOWN ASKS FRANKLIN RAINES VICE CHAIRMAN OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION WHO HAS ADVISED THE DISTRICT GOVERNMENT MOST EXPERTS AGREE THAT A SOLUTION WILL REQUIRE SOME BLEND OF HIGHER TAXES INCREASED EMPLOYEE CONTRIBUTIONS AND PENSION CUTBACKS CHIEF AMONG THEM ELIMINATION OF AT LEAST ONE OF TWO ANNUAL INFLATION ADJUSTMENTS FOR RETIREES AND PERHAPS A CAP ON THE OTHER DISTRICT OFFICIALS ALREADY ARE ASKING CONGRESS FOR MORE MONEY NOTING THAT THE FEDERAL GOVERNMENT TURNED OVER THE PLANS IN 1979 WITH INSUFFICIENT ASSETS BUT SOLVING THE PROBLEM WON'T BE EASY GIVEN SOME RECENT LACKLUSTER INVESTMENT RETURNS AND A CONFLICTOFINTEREST SCANDAL ON THE DC RETIREMENT BOARD WHICH IS MADE UP OF RETIREES AND POLITICAL APPOINTEES AFTER RECENT HEARINGS THE DC COUNCIL DECIDED THAT THE BOARD NEEDS STIFF ETHICAL STANDARDS AND A FULLTIME PROFESSIONAL INVESTMENT MANAGER THE RETIREMENT BOARD'S CHAIRMAN JAMES TYDINGS SAYS THE BOARD IS AWAITING A SECOND REPORT CARD THIS ONE FROM A TASK FORCE ORGANIZED BY THE DISTRICT'S CONGRESSIONAL DELEGATE BEFORE DECIDING ON ANY REFORM STEPS MOST OF ITS ATTENTION HAS BEEN FOCUSED LATELY ON SUING THE MAYOR IN DC SUPERIOR COURT TO ENSURE THAT IT GETS ITS PROMISED PENSION CONTRIBUTIONS IN SOME TOWNS PENSIONINSPIRED SERVICE CUTBACKS CAN LAST FOR YEARS ECORSE MICH A COMMUNITY OF 12000 BORDERING DETROIT WAS PUT INTO RECEIVERSHIP IN 1986 AFTER IT DEPLETED ITS PENSION FUND FOR POLICE AND FIREFIGHTERS FIVE YEARS AGO A STATE JUDGE IMPOSED A SPECIAL LEVY A 23 PROPERTYTAX INCREASE THAT HAS BUILT UP THE FUND TO 7 MILLIONTHOUGH ECORSE STILL HAS 9 MILLION IN UNFUNDED LIABILITIES THE TOWN ALSO CLOSED A DOZEN PLAYGROUNDS AND FOR A TIME THE PUBLIC LIBRARY FACING TOUGH CHOICES MANY POLITICIANS DECIDE TO LET THEIR SUCCESSORS FIGURE OUT THE PENSION PUZZLE LOUISIANA LAWMAKERS FEARFUL OF OFFENDING TEACHERS HAVE REPEATEDLY REJECTED BENEFIT REDUCTIONS SOUGHT BY TRUSTEES OF A DEPLETED STATE FUND EVEN SOME WEAKENED PLANS WON'T GO BELLYUP FOR 20 YEARS DESPITE CURRENT MEAGER FUNDING CONTRIBUTIONS BUT DELAYING ACTION CAN CAUSE OTHER HEADACHES CREDITRATING SERVICES FROWN ON FUNDING GAPS AND MAY REDUCE MUNICIPALBOND RATINGS THUS RAISING BORROWING COSTS SUCH PROBLEMS MAKE RUNNING A PENSION PLAN DIFFICULT I SPENT NINE YEARS IN THE MARINE CORPS AND IT WAS GREAT TRAINING FOR THE JOB OF PUBLICPENSIONFUND DIRECTOR SAYS MR SPICE WHO RUNS THE ILLINOIS PLAN FOR 110000 CURRENT AND FUTURE RETIREES OF COLLEGES AND UNIVERSITIES WITH 55 BILLION ON HAND THE FUND HAS ENOUGH TO MEET ONLY ABOUT 60 OF ITS LIABILITIES MR SPICE IS SUING THE STATE TO FORCE IT TO LIVE UP TO ITS OWN FUNDING RULES HE EVEN TAKES HIS CASE TO THE AIRWAVES TO TRY TO PERSUADE PEOPLE THAT IT'S CHEAPER TO FIX THE MESS TODAY WHO'S HURT BY THE DELAY GO TO ANY DAYCARE CENTER IN THE STATE IT'S OUR KIDS AND GRANDKIDS WHO ARE GOING TO HAVE THESE TREMENDOUS TAX BILLS COMING DUE MR SPICE ARGUED RECENTLY ON RADIO STATION WSOY IN DECATUR ILL THE FIRST CALLER DIDN'T BUY THAT SAYING STATE WORKERS ARE SO HIGHLY PAID THAT YOU HAVEN'T GAINED MY SYMPATHY HOWEVER MANY STATE WORKERS CONTEND THAT THEY ARE HARDLY OVERPAID AND THEY ARE UPSET BY PENSION CUTBACKS ONE IS 50YEAROLD LORRAINE SPILLER OF OAKLAND MAINE A PHYSICIAN'S ASSISTANT AT A STATE MENTAL HOSPITAL AT THE TIME THE STATE ACTED WITH HER RETIREMENT DELAYED TWO YEARS SHE WILL HAVE TO WAIT TO TAKE HER GRANDCHILDREN TO DISNEY WORLD MY PLANS PROBABLY SOUND TRIVIAL TO POLITICIANS FACING BIG BUDGET DEFICITS SHE CONCEDES ADDING THAT THE CUTBACK MAY HAVE BEEN JUSTIFIED I DON'T KNOW IF THEY HAD OTHER OPTIONS I JUST KNOW HOW IT AFFECTED ME I HAD DREAMS FOR THOSE TWO YEARS AND NOW THEY'RE GONE 9404060079 940406 CREDIT MARKETS BOND PRICES SHARPLY REVERSE DECLINING TREND BENCHMARK MORE THAN REGAINS MONDAY'S DROP BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK AFTER TWO WEEKS OF NEARLY NONSTOP DECLINES PRICES OF US TREASURY SECURITIES REVERSED DIRECTION AND POSTED SOLID GAINS YESTERDAY HOWEVER TRADERS AND ANALYSTS WARNED THAT THE BEARMARKET TREND FOR INTEREST RATES REMAINS INTACT BY NO MEANS THEY SAID IS THE BOND MARKET OUT OF THE WOODS THE GAINS MAY SUGGEST HOWEVER THAT THE BOND MARKET HAS AT LEAST REGAINED A DEGREE OF TEMPORARY STABILITY AFTER BEING POUNDED BY PANIC SELLING FRIDAY AND MONDAY THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1 5/8 POINTS OR MORE THAN 1625 FOR A BOND WITH 1000 FACE VALUE TO 87 28/32 ITS YIELD DROPPED TO 724 FROM 74 ON MONDAY IN TRADING FRIDAY AND MONDAY THERE WAS A SIEGE MENTALITY IN THE MARKET SAID WARD MCCARTHY A MANAGING DIRECTOR AT STONE & MCCARTHY RESEARCH ASSOCIATES BUT THE TENSION LEVEL HAS DROPPED OFF QUITE A BIT HE SAID ADDING THAT THIS MIGHT BE A SIGN THAT THE RATE OF DECLINE IS GOING TO SLOW DOWN FOR A WHILE JOSEPH LIRO SG WARBURG CHIEF ECONOMIST SAID THE MARKET WILL NEED TO PROVE ITS STRENGTH BEFORE TRADERS AND INVESTORS ARE CONVINCED THAT THE WORST IS REALLY OVER YESTERDAY'S RALLY WAS PURELY A TECHNICAL BOUNCE IN A MASSIVELY OVERSOLD MARKET MR LIRO SAID WE HAVE TO GET SOME STRONG ECONOMIC DATA AND SEE HOW THE MARKET REACTS IF BOND PRICES ARE ABLE TO WEATHER REPORTS SUGGESTING STRONG ECONOMIC ACTIVITY MR LIRO SAID IT WOULD INDICATE THAT SELLERS HAVE EXHAUSTED THEMSELVES AND THAT INVESTORS ARE VIEWING THE MARKET AS OFFERING ATTRACTIVE RETURNS BUT HE WASN'T OPTIMISTIC I DON'T THINK THAT'S GOING TO BE THE CASE HE SAID WHEN EUROPEAN INVESTORS RETURNED FROM THEIR LONG HOLIDAY WEEKEND YESTERDAY AND DIDN'T UNLEASH A TORRENT OF SELLING AS SOME HAD EXPECTED TRADERS BEGAN COVERING SHORTS A SHORT SALE IS A BET THAT PRICES WILL FALL IN WHICH A TRADER SELLS A BORROWED SECURITY IN HOPES OF REPLACING IT AT A LOWER PRICE POCKETING THE DIFFERENCE ALSO LIFTING THE MARKET WAS THE UNWINDING OF HEDGES WHERE TRADERS HAD SOLD TREASURYS TO OFFSET LOSSES ON OTHER FIXEDINCOME PRODUCTS ESPECIALLY MORTGAGEBACKED AND MUNICIPAL SECURITIES THE SHORT COVERING GATHERED STEAM OVER THE COURSE OF THE DAY AND WAS RESPONSIBLE FOR MOST OF THE MARKET'S GAINS TRADERS SAID IT WAS A CLASSIC SHORTCOVERING RALLY IN A BEAR MARKET SAID DANIEL CALLAHAN MANAGER OF GOVERNMENTSECURITIES TRADING AT PAINEWEBBER INC AS PRICES PUSHED HIGHER A FEW INVESTORS CRAWLED OUT OF THEIR FOXHOLES TO TAKE ADVANTAGE OF THE HIGHER YIELDS PRODUCED BY THE MARKET'S DECLINES PLAYERS SAID THAT BUYING CEMENTED THE MARKET'S GAINS BUT DEALERS STRESSED THAT BUYERS REMAIN RELATIVELY SCARCE AND VERY CAUTIOUS WE DID SEE SOME INVESTOR BUYING BUT THE AMOUNT OF BUYING WON'T BE ENOUGH TO SUSTAIN A RALLY LIKE THIS MR CALLAHAN SAID IT WAS SMALL PIECES OF MONEY BEING PUT TO WORK BY NO MEANS WAS THIS A CHANGE OF SENTIMENT AMONG RETAIL INVESTORS THE THREAT OF ADDITIONAL INCREASES IN SHORTTERM INTEREST RATES BY THE FEDERAL RESERVE CONTINUES TO HANG OVER THE MARKET AND AT MIDAFTERNOON YESTERDAY THOMAS HOENIG PRESIDENT OF THE FEDERAL RESERVE BANK OF KANSAS CITY REMINDED TRADERS THAT IT WILL PROBABLY ONLY BE A MATTER OF TIME BEFORE THE FED TIGHTENS AGAIN DURING AN APPEARANCE IN WYOMING MR HOENIG SAID THE FED IS AIMING AT A LESS ACCOMMODATIVE POLICY AIMED AT CONTROLLING FUTURE INFLATION MR HOENIG REMINDED THE MARKET THAT THE FED IS STILL OUT THERE AND THAT THEY ARE GOING TO DROP ANOTHER SHOE AT SOME POINT MR CALLAHAN SAID ALTHOUGH THE BOND MARKET IS VIEWED AS LIKELY TO BE VOLATILE IN COMING WEEKS AND MONTHS CURRENT YIELDS LOOK ATTRACTIVE TO INVESTORS WITH LONGERTERM PERSPECTIVES ALAN KRAL PORTFOLIO MANAGER AT TREVOR STUART BURTON & JACOBSON INC SAID THAT WITH THE HELP OF THE FED INFLATION WILL REMAIN UNDER CONTROL WITH REGARD TO THE FUNDAMENTALS WE'RE QUITE COMFORTABLE HE SAID HARVEY HISCHHORN CHIEF ECONOMIST AT DIRECTOR OF RESEARCH AT STEIN ROE & FARNHAM SAID THE ECONOMY WILL BEGIN TO COOL DOWN FROM ITS CURRENT RATE OF GROWTH DURING THE SECOND HALF OF THE YEAR THE YIELD ON THE LONG BOND HAS GONE TOO HIGH TOO SOON MR HIRSCHHORN SAID WHEN YOU LOOK OUT OVER THE NEXT FEW YEARS NOW WOULD BE A VERY OPPORTUNE TIME TO BUY HE SAID A LIGHT MAY HAVE APPEARED AT THE END OF THE TUNNEL YESTERDAY WHEN THE CORPORATEBOND MARKET TRADED HIGHER IN STEP WITH TREASURYS BUT THEN AGAIN MAYBE NOT WE FINALLY MADE SOME MONEY FOR THE FIRST TIME IN TWO MONTHS SAID ONE TRADER WHO LATER WARNED THAT A TURNAROUND IS NOT INSURED AFTER ONE STRONG DAY IT'S JUST AMAZING HOW FICKLE THE MARKET IS HE SAID TRADING IN THE INVESTMENTGRADE DEBT MARKET WAS LIGHT AND SPREADS REMAINED UNCHANGED IN THE JUNKBOND MARKET PRICES OF MANY BONDS ROSE ABOUT ONE POINT IN MODERATE TRADING TRADERS SAID NEW ISSUES CONTINUE TO BE LIGHT AS CORPORATIONS WAIT FOR THE MARKET TO STABILIZE COMMONWEALTH EDISON CO WAS THE SOLE CORPORATE ISSUER WITH ITS 150 MILLION DEBT OFFERING AND THERE WAS SLIGHTLY OVER 900 MILLION IN AGENCY PAPER SOLD LIGHT BUYING INTEREST WAS FINALLY SEEN FROM INSTITUTIONAL INVESTORS WHO WERE BOTTOM FISHING AND FROM DEALERS COVERING SHORT POSITIONS SOME TRADERS SAID BUT OTHERS NOTED THAT INVESTORS HAVE GOTTEN BURNED SO BADLY THAT THEY WILL NOW STAY SHORT REGARDLESS OF WHAT THE TECHNICALS OF THE MARKET LOOK LIKE ONE JUNKBOND TRADER SAID HE REQUIRES AT LEAST THREE OR FOUR DAYS OF STABILITY BEFORE HE WILL BELIEVE THAT THE MARKET HAS RECOVERED SOME BONDS WERE DOWN AS MUCH AS 10 POINTS THEREFORE A ONEPOINT GAIN IS JUST A START ON THE ROAD TO RECOVERY MEANWHILE CASH OUTFLOWS FROM HIGHYIELD MUTUAL FUNDS OVER A FOURWEEK PERIOD AVERAGED 250 MILLION A WEEK ACCORDING TO ROBERT ADLER PRESIDENT OF AMG DATA SERVICES AN ARCATA CALIF MUTUALFUND TRACKING FIRM THIS REVERSES THE TREND OF CASH INFLOWS SINCE THE BEGINNING OF THE YEAR THROUGH FEBRUARY A WEEKLY AVERAGE OF 250 MILLION TO 300 MILLION FLOWED INTO MUTUAL FUNDS MR ADLER SAID COMMONWEALTH EDISON'S 150 MILLION ISSUE OF THREEYEAR NONCALLABLE DEBENTURES WAS PRICED AT PAR TO YIELD 7 11 PERCENTAGE POINTS ABOVE TREASURYS PROCEEDS WILL BE USED TO REFINANCE MATURING DEBT A UTILITY SPOKESWOMAN SAID THE UTILITY BEGAN LOOKING AT THE MARKET LAST WEEK AND DECIDED TO JUMP IN AT THE FIRST SIGN OF AN IMPROVING MARKET TODAY ONE SYNDICATE OFFICIAL SAID RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC BUYERS CAUTIOUSLY RETURNED TO THE MUNICIPALBOND MARKET BOOSTING PRICES OF CLOSELY WATCHED ISSUES 1/2 POINT OR MORE WHILE THIS SESSION'S RISE WAS ENCOURAGING TRADERS NOTED THAT BUYING WAS HARDLY AGGRESSIVE AFTER THE RECENT PLUNGE AND THEY WERE RELUCTANT TO READ TOO MUCH INTO THE GAINS AS THE SESSION'S TRADING DREW TO A CLOSE THE FLORIDA BOARD OF EDUCATION'S 5125 OF 2022 BONDS WERE UP ABOUT 3/4 ON THE DAY AT 81 7/8 YIELDING 65 MUNIS WERE UNABLE TO MATCH THE GAINS OF US GOVERNMENT BONDS LARGELY BECAUSE OF ANOTHER WAVE OF SELLING LISTS THAT TOTALED ROUGHLY 500 MILLION MARKET PARTICIPANTS SAID IN LIGHT PRIMARYMARKET ACTIVITY THE VIRGINIA PUBLIC SCHOOL AUTHORITY'S 114955 MILLION REVENUE BONDS WERE WON BY A JP MORGAN SECURITIES INC GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 6066 THE BONDS RATED DOUBLEA BY BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP WERE PRICED TO YIELD FROM 4 IN 1995 TO 645 IN 2013 AND 2014 AT THEIR BEST LEVELS CURRENTPRODUCTION COUPONS WERE UP MORE THAN A POINT YESTERDAY THOUGH IN LATE TRADING THEY WERE UP MORE THAN 1/2 POINT THERE WAS HUGE BUYING TODAY SAID A PASSTHROUGH TRADER AT A PRIMARY DEALER MOST CUSTOMERS HE SAID WERE OLD FRIENDS OF THE MARKET LARGE BANKS OTHER RETAIL ACCOUNTS SUCH AS MUTUAL FUNDS REMAINED RELATIVELY QUIET WHILE PRICES HAVE BEEN SO BATTERED IN THE MARKET THAT ALMOST EVERYONE'S WILLING TO TALK ABOUT CHEAPNESS INVESTORS NOW SEEM TO WANT TO BUY ONLY ON SIGNS OF STRENGTH A TRADER SAID MORTGAGES IN PARTICULAR FARED WELL YOU GOT A CHANCE TO PUT AN 8 SECURITY ON YOUR BOOKS WITH NO PREPAY RISK THE TRADER SAID REFERRING TO THE RISK OF EARLY CALL ON MORTGAGE BONDS THAT WAS RAMPANT WHEN RATES WERE CONTINUALLY DROPPING IN LATE TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 8S FOR APRIL DELIVERY WAS UP 30/32 AT 99 26/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 8S FOR APRIL WAS UP 28/32 AT 100 10/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 8S FOR APRIL WAS UP 27/32 AT 100 5/32 9404060078 940406 INTERNATIONAL EUROTUNNEL AGREES TO SETTLE CLAIM OVER BUILDING COSTS LONDON EUROTUNNEL THE ANGLOFRENCH OPERATOR OF THE CHANNEL TUNNEL SAID IT AGREED TO A SETTLEMENT OF ITS DISPUTE WITH BUILDER TRANSMANCHE LINK INCLUDING A CLAIM OVER FIXEDEQUIPMENT COSTS EUROTUNNEL SAID IT WILL PAY A FURTHER 70 MILLION 1028 MILLION TO 85 MILLION TO TML THIS INCREASES THE ORIGINAL CONTRACT PRICE FOR THE FIXED EQUIPMENT TO ABOUT 114 BILLION IN 1985 MONEY 810 MILLION LESS THAN THE 1950 BILLION 286 BILLION SUBSEQUENTLY CLAIMED BY TML OR 11 BILLION LESS THAN TML'S CLAIM IN TODAY'S MONEY EUROTUNNEL SAID EUROTUNNEL SAID THAT IN EXCHANGE TML PLANS TO UNDERWRITE ANOTHER 75 MILLION OF A PLANNED EUROTUNNEL RIGHTS ISSUE PLANNED BY JUNE THIS YEAR EUROTUNNEL SAID IT HAS YET TO DETERMINE ALONG WITH ITS BANKS THE SIZE OF THE PENDING RIGHTS ISSUE THE PACT WITH TML IS SUBJECT TO APPROVAL FROM EUROTUNNEL'S BANKS ANDRE BENARD AND SIR ALASTAIR MORTON EUROTUNNEL'S COCHAIRMEN SAID WE BELIEVE THIS SETTLEMENT IS VERY MUCH IN THE INTERESTS OF OUR SHAREHOLDERS TML IS AN ANGLOFRENCH BUILDING CONSORTIUM THAT INCLUDES TARMAC PLC FRANCE'S BOUYGUES SA AND EIGHT OTHER CONTRACTORS 9404060077 940406 LEISURE & ARTS DANCE BARYSHNIKOV STILL FILLS SEATS BY DALE HARRIS NEW YORK CLASSICAL BALLET IS IN THE DOLDRUMS ONE REASON AT LEAST IS THAT MIKHAIL BARYSHNIKOV HAS DESERTED IT FOR MODERN DANCE THIS MOVE WHICH HE MADE SOME FIVE YEARS AGO WAS BOUND TO SADDEN ANYONE WHO SAW HIM IN HIS SALAD DAYS WHEN HE OFFERED A COMBINATION OF GRACE AND DEATHDEFYING VIRTUOSITY NO ONE IN OUR TIME HAS EVER MATCHED BUT HE IS NOW 46 AN AGE WHEN MOST MALE BALLET DANCERS HAVE LONG SINCE ACKNOWLEDGED THE DECLINE OF THEIR PHYSICAL RESOURCES AND ABANDONED THE STAGE FOR GOOD BY FOUNDING HIS OWN MODERNDANCE COMPANY WHITE OAK PROJECT WHICH RECENTLY MADE ITS DEBUT HERE AT LINCOLN CENTER MR BARYSHNIKOV ENSURED THAT HE WILL BE ABLE TO CONTINUE PERFORMING FOR SOME TIME TO COME MODERN DANCE REQUIRES SKILL AND ARTISTRY OF A HIGH ORDER OF COURSE BUT IT MAKES SUBSTANTIALLY FEWER DEMANDS ON THE BODY THAN CLASSICAL BALLET BY THE TIME IT GOT HERE WHITE OAK HAD BEEN IN EXISTENCE FOR FOUR YEARS AND HAD APPEARED ALL OVER THE US AS WELL AS IN SEVERAL MAJOR EUROPEAN CITIES APPARENTLY THE DELAY IN PRESENTING THE COMPANY IN NEW YORK WAS OCCASIONED BY MR BARYSHNIKOV'S NERVOUSNESS ABOUT HIS RECEPTION HERE HE NEEDN'T HAVE WORRIED DESPITE THE FACT THAT WHITE OAK CONSISTS OF ONLY EIGHT DANCERS AND THAT NEITHER OF THE TWO PROGRAMS IT OFFERED CONTAINED ANY CONCESSIONS TO POPULAR TASTE THE PUBLIC PACKED THE STATE THEATER DURING THE TROUPE'S WEEKLONG ENGAGEMENT THE REASON FOR THIS SUCCESS IS OBVIOUSLY THE PRESENCE AT EVERY PERFORMANCE OF MR BARYSHNIKOV OFFICIALLY ALL THE MEMBERS OF WHITE OAK ARE OF EQUAL RANK THE PUBLIC HOWEVER IS FULLY AWARE THAT THOUGH THE DANCERS' NAMES ARE PRINTED ALPHABETICALLY IN THE PROGRAM THE REAL ATTRACTION IS THE DANCER WHOSE NAME HAPPENS TO BE AT THE HEAD OF THE LIST THE OTHER DANCERS ROB BESSERER NANCY COLAHAN JOHN GARDNER KATE JOHNSON PATRICIA LENT KEVIN O'DAY AND RUTHLYN V SALOMONS ARE SUPERB BUT THEY ARE NOT STARS IF THE COMPANY'S STOPOVER HERE DID NOTHING ELSE IT AFFIRMED THE FACT THAT MR BARYSHNIKOV IS THE ONLY PERFORMER IN DANCE TODAY WHO CAN FILL AN AUDITORIUM SIMPLY ON THE STRENGTH OF HIS NAME NEVER WAS POPULARITY MORE RICHLY DESERVED IT'S TRUE THAT HE CAN DO LITTLE TO REDEEM THE DULLNESS AND PORTENTOUSNESS OF JOACHIM SCHLOEMER'S BEHIND WHITE LILIES HE IS NOT AT HIS BEST EITHER IN MERCE CUNNINGHAM'S SIGNALS WHICH LIKE ALL OF THIS CHOREOGRAPHER'S WORK DEMANDS AN INTENSITY OF CONCENTRATION EVEN IN LYRIC PASSAGES OR MOMENTS OF IMMOBILITY THAT MR BARYSHNIKOV HASN'T YET MASTERED NONETHELESS CURIOUSLY ENOUGH HE IS WONDERFUL TO WATCH IN BOTH PIECES IF ONLY FOR THE TEMPERAMENT DIGNITY AND ELEGANCE HE BRINGS TO EVERYTHING HE DOES IN THE EARLY DAYS OF WHITE OAK NAMED INCIDENTALLY AFTER THE FLORIDA ESTATE WHERE THE COMPANY REHEARSES AND PREPARES NEW WORKS THE REPERTOIRE WAS LARGELY BY MARK MORRIS THOUGH A SINGLE PIECE BY THAT PRODIGIOUSLY TALENTED CHOREOGRAPHER MOSAIC AND UNITED FIGURED IN THE COMPANY'S STATE THEATER PROGRAMS THE CURRENT REPERTOIRE IS THE WORK OF SEVERAL DANCE MAKERS IN ADDITION TO SIGNALS AND BEHIND WHITE LILIES THERE ARE WORKS BY TWYLA THARP JEROME ROBBINS AND THE LATE HANYA HOLM A COY AND SACCHARINE NUMBER ABOUT FLIRTATION CALLED JOCOSE AS WELL AS BY MR O'DAY A FLEDGLING DANCE MAKER FOR SOME YEARS MR O'DAY WAS A LEADING DANCER WITH THE TWYLA THARP COMPANY UNSURPRISINGLY HIS QUARTET FOR IV AND SOMETIMES ONE TWO OR THREE SET TO AN INTRIGUING ORIGINAL SCORE BY KEVIN VOLANS BETRAYS THE INFLUENCE OF MS THARP IN ITS JAZZINFLECTED HIPSWIVELING MOVEMENTS AS WELL AS IN ITS DISARMING MOMENTS OF IMPUDENCE AND ITS WHOLEHEARTED ARTISTIC COMMITMENT THE LAST IS THE DECISIVE FACTOR IN ITS SUCCESS WHICH THOUGH ARTISTICALLY MODEST AUGURS WELL FOR MR O'DAY'S FUTURE AS A DANCE MAKER HE IS NOT ONLY PREPARED TO TAKE HINTS FROM A MASTER CHOREOGRAPHER HE IS ALSO WILLING TO TAKE RISKS TO INFUSE MOVEMENTS AND STEPS WITH HIS OWN IDIOSYNCRATIC PERSONALITY HIS INVENTIVE SOLO FOR MR GARDNER UNTIL 1990 A SOLOIST WITH AMERICAN BALLET THEATRE IN TURN ELEGANT BRILLIANT AND ROMANTIC WAS ONE OF THE PLEASURES OF THIS WHITE OAK SEASON MR ROBBINS'S CONTRIBUTION TO WHITE OAK A SOLO FOR MR BARYSHNIKOV CALLED A SUITE OF DANCES WHILE NO LESS INFLUENCED BY MS THARP LACKS THE SAME KIND OF COMMITMENT SET TO A NUMBER OF MOVEMENTS FROM BACH'S SUITES FOR UNACCOMPANIED CELLO A SUITE OF DANCES IS ONE OF THOSE WORKS IN WHICH DANCERS LISTEN TO MUSIC USUALLY PLAYED BY AN INSTRUMENTALIST ONSTAGE AND PRETEND TO IMPROVISE MOVEMENTS IN RESPONSE TO WHAT THEY HEAR TO THIS GIMMICK GIVEN ITS MOST WINNING EXPRESSION IN GEORGE BALANCHINE'S DUO CONCERTANT MR ROBBINS HAS ADDED HIS OWN VERSION OF MS THARP'S CASUALNESS AND IRREVERENCE THERE ARE PASSAGES SUCH AS THE ONE THAT JOKINGLY QUOTES SWAN LAKE IN WHICH CLASSICAL BALLET IS GUYED OTHERS IN WHICH MR BARYSHNIKOV SEEMS TO BE MOCKING HIS OWN GIFTS AS A VIRTUOSO AT ONE POINT HE EXECUTES MULTIPLE PIROUETTES WITH BREATHTAKING BRILLIANCE AND THEN IMMEDIATELY AFTERWARD TEETERS COMICALLY ALL OF THIS WE HAVE SEEN BEFORE THE TROUBLE WITH THE PIECE HOWEVER IS LESS ITS DERIVATIVENESS THAN ITS TIMIDITY THE JOKES ARE NOT MERELY STALE THEY ARE VITIATED BY A CUTENESS THAT BESPEAKS NOT A DEDICATION TO THE COMIC A SERIOUS BUSINESS AFTER ALL BUT TO EASY SUCCESS TO SEE THE REAL THING ONE HAD ONLY TO WAIT FOR MS THARP'S PERGOLESI WHICH THOUGH ORIGINALLY DANCED BY THE CHOREOGRAPHER AND MR BARYSHNIKOV IS NOW BEING DANCED AS A SOLO BY THE LATTER A MINOR PIECE WITH MANY OF THE WITTICISMS MS THARP HAS BEEN DEVISING FOR MR BARYSHNIKOV DURING THE PAST TWO DECADES PERGOLESI NEVERTHELESS REVEALS A SERIOUSNESS OF PURPOSE ONE LOOKS FOR IN VAIN IN ANYTHING MR ROBBINS HAS OFFERED SINCE AFTERNOON OF A FAUN WHITE OAK PROJECT TOURS ITALY MILAN REGGIO EMILIA FLORENCE THIS MONTH FROM MAY THROUGH JULY IT WILL BE SEEN IN A NUMBER OF US AND CANADIAN CITIES BEGINNING WITH WASHINGTON DC 9404060076 940406 MARKETING & MEDIA ADVERTISING FORGET MEGABYTES COMPUTER ADS PUSH PRODUCT AS STATUS SYMBOL BY KEVIN GOLDMAN WRITING THIS COLUMN WOULD HAVE BEEN MORE GLAMOROUS IF IT HAD BEEN DONE ON A POWERBOOK AT LEAST THAT'S THE IMPRESSION CREATED BY APPLE COMPUTER'S POWERBOOK ADS SUCH HIP BUT OBSCURE CELEBRITIES SUCH AS WRITER TAMA JANOWITZ AND SINGER/SONGWRITER TODD RUNDGREN PROUDLY DISPLAY THEIR POWERBOOKS IN THE PRINT ADS AND REVEAL THE FASCINATING CONTENTS OF THEIR COMPUTERS SUCH AS A JOURNAL OF HER DREAMS AND HIS LECTURE ON INTERACTIVE MUSIC FORGET BMWS AND ROLEX WATCHES ACCORDING TO SEVERAL RECENT AD CAMPAIGNS THE STATUS SYMBOL OF THE 1990S IS THE PERSONAL COMPUTER COMPUTER COMPANIES WANT TO POSITION THEMSELVES AS SOPHISTICATED AND THE PRODUCT TO BUY SAYS RICHARD MONTURO ACCOUNT SUPERVISOR AT OMNICOM GROUP'S DDB NEEDHAM WHICH CREATED THE ADVERTISING FOR THE VERSA PERSONAL COMPUTER FROM NEC TECHNOLOGIES THEY WANT TO BE HIP AND DOWNTOWN THE NEC ACCOUNT IS IN REVIEW AND EARLIER THIS WEEK NEEDHAM WITHDREW FROM THE PROCESS MARKETING EXPERTS SAY COMPUTER COMPANIES ARE WISELY SHOWING HOW THE TECHNOLOGY CAN BENEFIT EVERYONE FROM CORPORATE BUSINESSMEN TO SELFEMPLOYED ESOTERIC ARTISTS COMPUTER ADS ARE SHOWING THE MACHINES AS STATUS SYMBOLS BY USING THE OLD PROBLEM/SOLUTION TACTIC SAYS STEVEN E PERMUT PRESIDENT OF MARKETING SCIENCES IN GUILFORD CONN THE PROBLEM PEOPLE IN THE FASTPACED AND COMPETITIVE 1990S HAVE SO MUCH TO ORGANIZE IN THEIR WORK AND PERSONAL LIVES THE SOLUTION JUST PUT EVERYTHING ON A PC THE NEW ADS SPEAK TO A MUCH BROADER AUDIENCE THAN COMPUTER FANATICS AND THEY AVOID TECHNOSPEAK COMMERCIALS FOR COMPUSERVE FROM SIVE/YOUNG & RUBICAM SHOW EVERYTHING FROM A MOUNTAIN CLIMBER COMMUNICATING TO FELLOW ADVENTURERS BY COMPUTER TO A FASHION PHOTOGRAPHER USING COMPUSERVE TO FIND LOCATIONS TO SHOOT WE'RE NO LONGER TALKING TO PROPELLER HEADS SAYS MR MONTURO INSTEAD OF SAYING YOU WANT A 300MEGABYTE HARD DRIVE WE WANTED TO TALK ABOUT PEOPLE'S HOPES AND DREAMS INDEED SOME ADS IMPLY THAT THE COMPUTER USER WOULD BE ABLE TO ACHIEVE ALMOST ANYTHING RANGING FROM SUCCESSFULLY OPERATING A BUSINESS TO WRITING GREAT LOVE POETRY A RECENT PRINT AD FOR NEC'S VERSA EVEN HAS A NEW AGE RING TO IT YOU ARE AN UNFINISHED BOOK A WORK IN PROGRESS A GROWING STACK OF PAGES THE STORY OF ALL YOU ARE AND WILL BE YOU ARE AN UNFINISHED BOOK AND THE NEXT PART OF THE STORY IS YOU'LL NEVER BE DONE OTHER COPY IN THE AD DESCRIBES VERSA AS A CANVAS WITH A KEYBOARD A POWER TOOL WITH A TRACKBALL A NEW LOTUS DEVELOPMENT AD ALSO APPEALS TO PEOPLE'S INDIVIDUALITY AND CREATIVE POTENTIAL YOU ARE A VISIONARY SAYS THE HEADLINE NEXT TO A BABY'S FACE IN THE LOTUS AD WHICH WAS CREATED BY THE HILL HOLLIDAY CONNORS COSMOPULOS AD AGENCY IN BOSTON YOU PROCESSED EVERYTHING UNTIL YOU DISCOVERED THAT WHAT YOU KNOW IS DIFFERENT FROM ANYONE ELSE IN THE WORLD LILLIAN MARESCH PRESIDENT OF GENERATION INSIGHTS A MARKETING CONSULTING FIRM IN MINNEAPOLIS THINKS SUCH ADS ARE RIGHT ON TARGET BOOMERS ARE INTO KNOWLEDGE SHE SAYS AND THE ADS GIVE THE IMPRESSION THAT THEY WOULD ACHIEVE A FULL KNOWLEDGE BASE BY OWNING THE COMPUTER PLAYING ON BABY BOOMERS' EGOS IS ALSO A SMART STRATEGY SHE SAYS THEY ADDRESS THE KEEPING UP WITH THE JONESES' ASPECT THAT BOOMERS LOVE YOUR NEIGHBOR HAS THE LATEST SEXY COMPUTER THEN YOU HAVE TO OWN ONE AS WELL THAT'S PRECISELY THE MESSAGE OF THE CAMPAIGN FOR APPLE'S NEW POWER MACINTOSH IN ONE MAGAZINE AD A YOUNG MAN IS DAYDREAMING AND THINKING MY FRIENDS WILL BE IMPRESSED IN ANOTHER POWER MAC AD A BUSINESSMAN SAYS TO HIMSELF I GOTTA HAVE ONE BUT ULTIMATELY COMPUTERS HAVE TO DELIVER MORE THAN STATUS WHEN YOU USE STATUS IN THE ADS AS MANY COMPUTER COMPANIES ARE DOING THE PERFORMANCE HAD BETTER DELIVER OTHERWISE YOU CAN GET HUNG OUT TO DRY SAYS STEVE HAYDEN CHAIRMAN OF OMNICOM'S BBDO IN LOS ANGELES WHICH HANDLES APPLE APPLE'S ADS HE SAYS TRY TO BALANCE CACHET WITH PERFORMANCE WE TRY TO DELIVER ON THE PROMISES WE MAKE IN ADS SINCE WITH ANY STATUS SYMBOL YOU CAN BE HOT ONE DAY AND ICE COLD THE NEXT IN A TWIST ON RECENT PROMOTIONS INVITING CONSUMERS TO TRADE IN THEIR GUNS FOR SNEAKERS THE MAKER OF BRITISH KNIGHTS SNEAKERS IS OFFERING TO TRADE SHOES FOR JOE CAMEL CLOTHES JACK SCHWARTZ SHOES THE CLOSELY HELD MAKER OF BRITISH KNIGHTS IS OFFERING A FREE PAIR OF 70 TO 80 DYMACEL SNEAKERS TO THE FIRST 50 HIGH SCHOOL STUDENTS WHO SEND JACKETS HATS TSHIRTS AND SOCKS DISTRIBUTED BY RJ REYNOLDS TO PROMOTE JOE CAMEL THE CARTOON SPOKESMAN FOR CAMEL CIGARETTES RJ REYNOLDS A UNIT OF RJR NABISCO HOLDINGS SAID IT DISTRIBUTES JOE CAMEL CLOTHES THROUGH ITS CAMEL CASH PROMOTIONS ONLY TO SMOKERS WHO SAY THEY ARE LEGALLY OLD ENOUGH TO BUY CIGARETTES THE COMPANY WAS QUICK IN ATTEMPTING TO TURN THE TABLES ON BRITISH KNIGHTS THE OFFER WHICH ENDS IN JUNE HAS THE POTENTIAL TO CAUSE CHILDREN TO SEEK OUT CAMEL PREMIUM ITEMS AND HOLD THEM IN HOPES THAT BRITISH KNIGHTS WILL OFFER FREE SNEAKERS AGAIN RJR SAID IN A STATEMENT MR SCHWARTZ SAID HE DOUBTED THAT WOULD HAPPEN 9404060075 940406 LETTERS TO THE EDITOR WHITE HOUSE COUNSEL HIS DUTY IS CLEAR TERRY EASTLAND HAS AN OUTLANDISH VIEW OF THE ROLE OF WHITE HOUSE COUNSEL RULE OF LAW MARCH 9 NO ONE WOULD DISPUTE THE IDEA THAT THE EXECUTIVE BRANCH HAS TO GUARD ITSELF AGAINST ILLEGITIMATE ENCROACHMENT BY THE OTHER TWO BRANCHES THE PRESIDENT AND HIS LEGAL ADVISERS FOR EXAMPLE OUGHT TO RESIST ANY ATTEMPT BY CONGRESS TO LIMIT HIS POWER TO PARDON INDIVIDUALS ACCUSED OF FEDERAL CRIMES BUT THAT TYPE OF DEFENSIVE ACTION DOES NOT APPEAR TO BE ENOUGH FOR MR EASTLAND HIS IDEAL COUNSEL HAS TO BE A VERY STRONG PROPONENT OF EXECUTIVE POWER HOW MIGHTY DOES THE COUNSEL HAVE TO BE MR EASTLAND PROPOSES THAT WE EVALUATE THE TENURE OF EACH WHITE HOUSE COUNSEL ACCORDING TO THE FOLLOWING TEST DID COUNSEL STRENGTHEN OR WEAKEN THE EXECUTIVE BRANCH WHAT IS DISTURBING ABOUT THE EASTLAND TEST IS THAT IT DOES NOT CONCERN ITSELF WITH THE CONSTITUTIONAL LEGITIMACY OF THE EXECUTIVE POWERS THE MOST IMPORTANT THING FOR MR EASTLAND IT SEEMS IS HOW SUCCESSFUL THE EXECUTIVE OFFICERS ARE IN HOLDING ON TO POWERS ALREADY ESTABLISHED BY PRECEDENT SO IF TRUMAN GOT AWAY WITH KOREA AND THE STEEL MILLS THE SUCCESSORS' LEGACY WOULD DEPEND UPON HOW WELL THEY TOTE THE NEW EXECUTIVE LINE ON ARTICLE II POWERS THIS IS A HAMILTONIAN FORMULA FOR EXECUTIVE POWER AGGRANDIZEMENT THE PRIMARY RESPONSIBILITY OF THE WHITE HOUSE COUNSEL CAN BE SIMPLY STATED DEFEND THE CONSTITUTION AND THE INTEGRITY OF THE EXECUTIVE OFFICE IF A SERIOUS CONFLICT EVER ARISES BETWEEN THE COUNSEL AND THE PRESIDENT THE COUNSEL HAS A DUTY TO RESIGN 9404060074 940406 LETTERS TO THE EDITOR IT'S AN ORDEAL BUT IT'S STILL THE BEST IN HIS MARCH 16 RULE OF LAW COLUMN CARDINAL BERNARDIN'S UNNECESSARY ORDEAL THOMAS SCORZA ARGUES THAT THE CARDINAL'S CASE DEMONSTRATES THAT THE ARGUMENT FOR THE ADVERSARY SYSTEM IS UNPERSUASIVE AND THAT A LAWYER'S BLIND DEVOTION TO HIS CLIENT NOT ONLY CAN SERIOUSLY INJURE THE INNOCENT BUT ALSO CAN MAKE OUR LEGAL SYSTEM APPEAR DEVOID OF MORAL BALANCE NOT TO MENTION COMMON DECENCY THAT A DEFENDANT IS SOMETIMES HUMILIATED AND PUT TO GREAT EXPENSE BECAUSE OF A FALSE SUIT AND THAT HIS REMEDIES ARE INADEQUATE IS UNFORTUNATE BUT IT DOES NOT DEMONSTRATE THAT THE ADVERSARY SYSTEM IS WRONG OR THAT LAWYERS OUGHT TO OWE THEIR PRIMARY LOYALTY NOT TO THEIR CLIENTS BUT TO AN AMORPHOUS PUBLIC INTEREST LIKE DEMOCRACY ITSELF THE LEGAL SYSTEM IS NOT PERFECT BUT THE EVILS ATTENDANT TO ALTERNATIVE SYSTEMS ARE SO MUCH WORSE THAT THEY MUST BE REJECTED ONE COULD AS EASILY ARGUE THAT THE HARM SUFFERED BY CARDINAL BERNARDIN WAS NOT THE FILING OF MR COOK'S SUIT BUT RATHER THE EXPENSIVE LURID COVERAGE OF THIS APPARENTLY FRIVOLOUS SUIT BY THE MEDIA A CITIZEN IS SOMETIMES FALSELY HUMILIATED PUT TO GREAT EXPENSE AND RUINED BECAUSE OF FREEDOM OF THE PRESS AND SIMILARLY HAS NO ADEQUATE REMEDY SUCH FREEDOM MAY ALSO SOMETIMES MAKE THE SYSTEM APPEAR DEVOID OF MORAL BALANCE OR DECENCY THAT SUCH IS THE CASE DOES NOT DEMONSTRATE THAT WE SHOULD HAVE CENSORSHIP OR THAT NEWSPAPERS SHOULD BE HELD FOR LARGE DAMAGES BY REASON OF ERRONEOUS DISCLOSURES IN THE ABSENCE OF CONSTITUTIONAL MALICE THE REASON IS THAT FREEDOM OF EXPRESSION IS A FUNDAMENTAL UNDERPINNING OF OUR SOCIETY AND DESERVES PROTECTION NOTWITHSTANDING THE OCCASIONAL RELATIVELY MARGINAL HARM THAT RESULTS THE ADVERSARIAL SYSTEM ALSO A FUNDAMENTAL PREMISE UPON WHICH OUR SYSTEM IS BASED IS SUPERIOR TO ITS OPPOSITE THE INQUISITORIAL SYSTEM THE ATTEMPT TO REDIRECT THE FOCUS OF ATTORNEYS TO BE POLICEMEN OR GUARDIANS OF SOCIETY RATHER THAN ADVOCATES FOR THEIR CLIENTS IS AN ATTACK ON THE FUNDAMENTAL PREMISE UPON WHICH THE SYSTEM IS BASED THE ADVERSARIAL SYSTEM IS THE BEST MEANS FOR ASSURING THAT THE CITIZENRY PARTICULARLY INCLUDING THE DISADVANTAGED CAN OBTAIN JUSTICE ATTEMPTING TO PENALIZE LAWYERS FOR TAKING UNPOPULAR OR MARGINAL CASES TENDS TO STIFLE INITIATIVE AND INNOVATION BECAUSE MR COOK'S LAWYERS CHOSE TO SUE EVEN THOUGH THERE WAS A SUBSTANTIAL TECHNICAL QUESTION WHETHER THE SUIT WAS FILED TOO LATE DOES NOT ESTABLISH THAT THEY SHOULD HAVE REFRAINED FROM SUING BY REASON OF THAT ISSUE IF THE CASE HAD OTHERWISE BEEN MERITORIOUS THE PLAINTIFF SHOULD HAVE HAD AN OPPORTUNITY TO PRESENT HIS SIDE OF A MATTER ABOUT WHICH THERE WAS A SUBSTANTIAL TECHNICAL QUESTION AND HIS LAWYERS MIGHT HAVE BEEN NEGLIGENT NOT TO RAISE IT THE COOK V BERNARDIN CASE GOT AS FAR AS IT DID BECAUSE OF THE FRENZIED SOCIAL ATMOSPHERE IN WHICH CHILD ABUSE GENERALLY WAYWARD PRIESTS IN PARTICULAR AND REPRESSED MEMORY THEORY HAVE BEEN SENSATIONALIZED THE RELATIVELY HAPPY RESULT OF THE CASE BELIES ITS USE AS AN EXAMPLE OF JUDICIALSYSTEM ABUSE MR COOK RECEIVED NOTHING IT DOES NOT APPEAR THAT ANYONE IS BEATING A PATH TO HIS COUNSEL'S DOOR CARDINAL BERNARDIN CAME OUT OF THE AFFAIR WITH HIS HIGH REPUTATION INTACT AND ADMIRATION FOR HIS CIVILIZED RESPONSE TO THE CHARGES AND A DASH OF COLD WATER HAS BEEN THROWN ON THE REPRESSEDMEMORY CHILDABUSE HYSTERIA THE SYSTEM WORKED 9404060073 940406 INTERNATIONAL TWO BIG FRENCH ENVIRONMENTAL FIRMS EXPAND IN THE US THROUGH MERGERS BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FRANCE'S TWO HUGE RIVAL ENVIRONMENTALSERVICES COMPANIES ARE STEPPING UP THEIR PUSH INTO THE US AND BOTH ARE USING A TIMEHONORED EUROPEAN SYSTEM STRATEGIC MARRIAGE FRANCE'S GIANT CIE GENERALE DES EAUX WHOSE BUSINESSES RANGE FROM WATER MANAGEMENT TO HEALTH CARE WORLDWIDE SAID IT HAS SIGNED AN AGREEMENT TO MERGE ITS US WATER AND WASTEWATER ACTIVITIES WITH THOSE OF AIR & WATER TECHNOLOGIES CORP BRANCHBURG NJ SLIGHTLY SMALLER LYONNAISE DES EAUXDUMEZ SA PLANS TO COMPLETE BY THE END OF THIS MONTH THE MERGER OF ITS MAIN US MUNICIPAL WATER UNIT GWC CORP WITH UNITED WATER RESOURCES INC OF HARRINGTON PARK NJ THE TWO FRENCH GROUPS HAVE BEEN EXPANDING AGRESSIVELY AROUND THE WORLD FROM BUENOS AIRES TO KUALA LUMPUR AND ANALYSTS RANK THEM FIRST AND SECOND AMONG WATER SERVICES CONCERNS WORLDWIDE AS MORE AND MORE AMERICAN LOCALITIES TALK OF CONTRACTING OUT MUNICIPAL SERVICES TO PRIVATE COMPANIES THE TWO HUGE FRENCH GIANTS ARE MOVING FURTHER AND FURTHER INTO THE US IN THE SHORT TERM BOTH WILL WIND UP WITH MINORITY STAKES IN THEIR US WATER BUSINESSES BUT LIKE EUROPEAN KINGS TRYING TO BROADEN THEIR REALMS THROUGH ARRANGED MARRIAGES BOTH SEEM LIKELY TO USE THEIR US ALLIANCES AS STEPPING STONES TOWARD BIGGER AND BIGGER US MARKET SHARE LYONNAISE DES EAUX SEES THE US MARKET AS A BIG AND EXPANDING ONE IN WHICH THEY CAN GROW ESPECIALLY THROUGH THE PRIVATIZATION OF THE CONTRACT WATERMANAGEMENT BUSINESS SAYS RONALD DUNGAN EXECUTIVE VICE PRESIDENT OF LYONNAISE DES EAUX'S US UNIT GWC GENERALE DES EAUX'S LINK WITH FINANCIALLY STRAPPED AIR & WATER IS A CLASSIC EXAMPLE OF THE GRADUALEXPANSION TACTICS THAT BOTH FRENCH COMPANIES HAVE USED BEGINNING WITH A MINORITY INVESTMENT IN 1990 GENERALE DES EAUX SLOWLY ACQUIRED 245 OF THE US CONCERN'S SHARES IF THE CURRENT TRANSACTION IS COMPLETED AS PLANNED THE FRENCH COMPANY WILL WIND UP WITH 40 OF COMMON SHARES AND COUNTING PREFERRED CONVERTIBLE SHARES THAT IT IS TO ACQUIRE WILL HOLD 48 OF SHAREHOLDER VOTES IT WILL BE BY FAR THE LARGEST SHAREHOLDER WITH THE RIGHT TO NAME THE CHAIRMAN CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER LEAVING IT IN EFFECTIVE CONTROL OF ONE OF ITS BIGGEST US RIVALS THE MERGER STILL MUST BE APPROVED BY SHAREHOLDERS AND BY FEDERAL REGULATORS ON ANTITRUST GROUNDS CLAUDIO ELIA GENERALE DES EAUX'S CHIEF REPRESENTATIVE IN THE US SAID HE ANTICIPATES NO TROUBLE IN WINNING REGULATORY APPROVAL AND HOPES TO COMPLETE THE MERGER IN JUNE IN A COMPLICATED TRANSACTION GENERALE DES EAUX HAS AGREED TO PAY IN 65 MILLION FOR THE ADDITIONAL COMMON AND PREFERRED SHARES AND TO PROVIDE ASSURANCES TO BANKS TO HELP AIR & WATER LINE UP AS MUCH AS 125 MILLION IN FRESH CREDIT BURDENED BY INTEREST PAYMENTS AIR & WATER HAS POSTED NET LOSSES IN EVERY YEAR SINCE ITS 1987 LEVERAGED BUYOUT AND NEEDED THE FINANCIAL SUPPORT IN ADDITION GENERALE DES EAUX WILL TRANSFER TO AIR & WATER ITS KEY US WATERMANAGEMENT UNIT PROFESSIONAL SERVICES GROUP INC THE US MARKET LEADER IN MANAGING WASTEWATER SERVICES UNDER CONTRACT AIR & WATER ALREADY HOLDS ONE OF PROFESSIONAL SERVICES' BIGGEST US RIVALS METCALF & EDDY INC INDUSTRY INSIDERS SAID IT WOULD BE LOGICAL FOR THE TWO NOW TO MERGE CREATING A COMPANY WITH NEARLY TWICE THE WATERMANAGEMENT REVENUE OF THE NEAREST US COMPETITOR THAT LARGE WATERMANAGEMENT CONCERN WOULD REPRESENT ONLY A MINORITY OF AIR & WATER'S BUSINESS HOWEVER MOST OF ITS ACTIVITIES ARE IN AREAS SUCH AS AIRPOLLUTION CONTROL AND ENGINEERING AREAS WHERE GENERALE DES EAUX UNTIL NOW WAS WEAK IN THE US MARKET LYONNAISE DES EAUX IS MOVING INTO A SLIGHTLY DIFFERENT ARM OF THE WATER BUSINESS THAT OF REGULATED UTILITIES UNITED WATER RESOURCES AND LYONNAISE DES EAUX'S GWC DON'T MANAGE WATER WORKS FOR MUNICIPAL OWNERS THEY ACTUALLY OWN LOCAL UTILITIES NOTABLY IN THE NORTHEAST LYONNAISE DES EAUX CURRENTLY OWNS ABOUT 83 OF GWC THE MERGER WHICH HAS BEEN APPROVED BY SHAREHOLDERS AND IS SET TO TAKE EFFECT APRIL 22 WILL LEAVE IT WITH ABOUT 26 OF THE COMBINED COMPANIES AS IN THE CASE OF GENERALE DES EAUX IT WILL BE BY FAR THE LARGEST SINGLE SHAREHOLDER ALTHOUGH IT IS EXPECTED INITIALLY AT LEAST TO AVOID TRYING TO EXERT MANAGEMENT CONTROL AIR & WATER POSTED A NET LOSS OF 56 MILLION IN THE FISCAL YEAR ENDED OCT 31 1993 ON 6304 MILLION IN REVENUE COMPARED WITH A 1992 LOSS OF 10 MILLION ON 6729 MILLION IN REVENUE GWC POSTED PROFIT OF 155 MILLION IN 1993 ON 1253 MILLION IN REVENUE UP FROM 116 MILLION IN PROFIT AND 1167 MILLION IN REVENUE IN 1992 UNITED WATER RESOURCES POSTED 20 MILLION IN 1993 PROFIT ON 2004 MILLION IN REVENUE UP FROM 158 MILLION IN 1992 PROFIT AND 1649 MILLION IN REVENUE 9404060072 940406 WORLD MARKETS STOCKS RALLY 23 IN TOKYO AS MOST BOURSES WORLDWIDE SHED WEAKNESS TO SCORE SOLID GAINS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS RALLIED 23 TUESDAY AS KABUTOCHO THE CITY'S EQUITIES DISTRICT DEMONSTRATED THAT IT CAN MOVE OUT OF STEP WITH WALL STREET OTHER ASIAN AND EUROPEAN BOURSES ALSO SCORED GAINS ON RELIEF THAT NEW YORK STOCKS DIDN'T DROP MONDAY AS DEEPLY AS FEARED IN REACTION TO US DATA INDICATING ROBUST ECONOMIC GROWTH THAT COULD SIGNAL TIGHTER MONETARY POLICY IN EUROPE FOLLOWING A LONG HOLIDAY WEEKEND IN OBSERVANCE OF EASTER LONDON PRICES OVERCAME EARLY WEAKNESS AND GAINED ALMOST 1 FINISHING AT THE DAY'S HIGHS ALSO DEFYING EXPECTATIONS FRANKFURT STOCKS RACED UP 12 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11157 UP 110 REFLECTING HIGHER AMERICAN AND ASIA/PACIFIC MARKETS AND LOWER EUROPEAN MARKETS SOFTWARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12228 UP 591 OR 51 WITH ADOBE SYSTEMS OF THE US POSTING AN 11 GAIN IN ITS LOCAL CURRENCY WATER UTILITIES STOCKS TRAILED AT 11680 DOWN 144 OR 12 WITH CALIFORNIA WATER SERVICE OF THE US SLIDING 21 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 15494 POINTS MONDAY SURGED 44099 TO 1956321 NEAR THE INTRADAY HIGH OF 1958032 IN TOKYO WEDNESDAY THE NIKKEI ROSE 27626 POINTS TO CLOSE THE MORNING SESSION AT 1983947 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 220 MILLION SHARES LITTLE CHANGED FROM 2246 MILLION SHARES A DAY EARLIER GAINERS TROUNCED LOSERS 872172 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SLID 1080 POINTS MONDAY JUMPED 2845 OR 18 TO 158883 SOME INVESTORS VIEWED TOKYO AS A SAFE HARBOR FROM INTERESTRATE INFLUENCES IN OTHER NATIONS FEARS OF FURTHER RISES IN US RATES HAVE FIGURED IN WALL STREET'S WEAKNESS FOR THE PAST WEEK THOUGH NEW YORK STOCKS FELL ONLY HALF AS MUCH AS EXPECTED ON MONDAY FOLLOWING BONDMARKET WEAKNESS THE NIKKEI OPENED AT ITS LOW OF 1918404 AND GAINED STEADILY THROUGH THE SESSION HITTING ITS PEAK JUST THREE MINUTES BEFORE THE CLOSE JAPANESE INSTITUTIONAL INVESTORS INTENT ON PICKING UP BARGAINS WERE THE MAIN BUYERS ENCOURAGED BY WALL STREET'S RESISTANCE TO A DEEPER SELLOFF BUT TURNOVER ON THE JAPANESE BOURSE WAS RELATIVELY LOW AS SOME EUROPEAN INVESTORS REMAINED ON HOLIDAY AND INDIVIDUAL INVESTORS LARGELY SAT OUT THE SESSION WORRIED ABOUT FURTHER WEAKNESS ON WALL STREET AND A WORSENING OF THE SITUATION ON THE NEIGHBORING KOREAN PENINSULA ON MONDAY NORTH KOREA REFUSED UNITED NATIONS REQUESTS FOR INSPECTIONS OF NUCLEAR SITES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 298 POINTS TO 31162 ALSO THE SESSION'S PEAK THE FT 30STOCK INDEX ADVANCED 234 POINTS ALSO ALMOST 1 TO 24626 VOLUME WAS 7542 MILLION SHARES COMPARED WITH 7256 MILLION SHARES IN THE PREVIOUS SESSION THE SAILING WAS ROUGH EARLY IN THE SESSION AS DEALERS ASSUMED THE US BOND MARKET'S SLIDE FRIDAY WOULD PROMPT A WAVE OF SELL ORDERS IN LONDON YESTERDAY FOLLOWING A FOURDAY BREAK INDEED THE FTSE 100 HIT ITS LOW OF 30470 SOON AFTER THE OPENING BECAUSE OF MARKDOWNS AND A BEARISH FUTURES MARKET BUT BARGAINHUNTERS SOON EMERGED LURED BY A RISING BRITISH GILT OR GOVERNMENT BOND MARKET AND A SHARP RISE EARLY ON WALL STREET LED STOCKS UP AT THE FINISH IN FRANKFURT THE DAX 30STOCK INDEX RALLIED 2518 POINTS TO 215829 AFTER FALLING 14 POINTS THURSDAY THE LAST DAY OF TRADING PRIOR TO A FOURDAY EASTER WEEKEND DECLINES HAD BEEN EXPECTED IN RESPONSE TO HEAVY LOSSES MONDAY IN NEW YORK THE DAX OPENED AT 213411 AND ROSE STEADILY DURING THE DAY ALBEIT ON THIN VOLUME THE MARKET HAS SHOWN RESILIENCE AMID THE RECENT EUROPEAN NERVOUSNESS ABOUT THE SHARP DROP IN US SHARE PRICES MAKING IT TOO SEEM A RELATIVELY SAFE HAVEN FOR FOREIGN INVESTORS SELLING PRESSURE ALSO WAS LOW BECAUSE MANY INVESTORS' PORTFOLIOS ARE UNDERWEIGHTED IN GERMAN SHARES IN PARIS EQUITIES FOUND SUPPORT FROM AN EARLY NEW YORK RALLY AND FINISHED NEAR INTRADAY HIGHS IN AMSTERDAM EARLY WEAKNESS WAS REVERSED BY BARGAINHUNTING AND PRICES CLOSED BROADLY MIXED TO HIGHER IN BRISK TRADING AS THE MARKET CONTINUED TO TRACK TRENDS ON DUTCH AND GERMAN BOND MARKETS IN MADRID STOCKS SOARED 29 AS INVESTORS WERE CHEERED BY A STRONGER US DOLLAR IN FOREIGNEXCHANGE DEALINGS AND BY A HEALTHIER BOND MARKET IN STOCKHOLM SHARES RALLIED 15 BREAKING A 12SESSION LOSING STREAK THE MARKET OPENED LOWER AND DEALINGS WERE THIN UNTIL MIDDAY WHEN INSTITUTIONS BECAME ACTIVE PROMPTED BY LOWER SWEDISH LENDING RATES AND HOPES US SHARES WOULD REBOUND IN ZURICH STOCKS ROSE AS WORRIES ABOUT RISING INTEREST RATES AND FALLING SHARES IN THE US GAVE WAY TO A CONVICTION THAT EUROPEAN RATES AND EQUITIES NEEDN'T FOLLOW SUIT BUT IN MILAN SHARES FELL THOUGH THEY ENDED FAR ABOVE THEIR LOWS IN ACTIVE TRADING AS ITALIAN INVESTORS BOUGHT STEADILY FOLLOWING A WEAK OPENING ONCE THE SELLING WAVE WAS SPENT TRADERS AND ITALIAN INSTITUTIONS BEGAN BUYING IN MEXICO CITY AFTER PLUNGING 6 MONDAY STOCKS TUMBLED 14 IN ERRATIC TRADING AMID TECHNICAL ADJUSTMENTS AND CONTINUED POLITICAL NERVOUSNESS ABOUT AN INDICATED CONSPIRACY IN THE ASSASSINATION OF A PRESIDENTIAL CANDIDATE IN SYDNEY SHARES EASED AFTER A SELLOFF WAS FOLLOWED BY A STRONG REBOUND THE MARKET'S DECLINE WAS THE SEVENTH IN A ROW THE EARLY PLUNGE REFLECTED THE TUMBLE MONDAY ON WALL STREET AND WEAKNESS IN BOND MARKETS BUYERS ESPECIALLY AUSTRALIAN INSTITUTIONS EMERGED AS THE MARKET WAS VIEWED AS OVERSOLD IN SINGAPORE PRICES CLIMBED 11 ON THIN VOLUME FOLLOWING SLIDES IN THE TWO PREVIOUS SESSIONS INVESTORS WERE RELIEVED THAT NEW YORK STOCKS' LOSSES THE PREVIOUS DAY DIDN'T TURN INTO A COLLAPSE IN KUALA LUMPUR STOCKS REBOUNDED FROM LOWS TO CHALK UP A 12 GAIN AS INVESTORS TOOK THEIR CUE FROM THE TOKYO BOURSE BARGAINHUNTING HELPED PUSH PRICES UP DESPITE SPORADIC BURSTS OF PROFITTAKING DRIVEN BY ANXIETY ABOUT POTENTIAL LOSSES ON OVERSEAS BOURSES EVEN THOUGH DOMESTIC ECONOMIC FUNDAMENTALS SEEM SOUND IN MANILA EQUITIES ENDED LOWER IN THIN VOLUME HURT BY THE DROP MONDAY ON WALL STREET IN WELLINGTON STOCKS TUMBLED 17 INFLUENCED BY NEW YORK STOCKS' DECLINES IN BANGKOK PRICES EDGED UP IN A TECHNICAL REBOUND AS PARTICIPANTS REMAINED JITTERY ABOUT THAI POLITICAL PROBLEMS DECLINES IN OTHER WORLD STOCK MARKETS AND THE SCENARIO OF HIGHER US INTEREST RATES AMONG CORPORATE DEVELOPMENTS IN FRANKFURT METALLGESELLSCHAFT SOARED 1680 MARKS OR 81 TO 22480 MARKS 13263 ON SPECULATIVE BUYING THE METALS AND ENGINEERING CONCERN WILL ISSUE 56 MILLION NEW SHARES THIS MONTH AS PART OF ITS FINANCIAL RESCUE PACKAGE AND SPECULATION MOUNTED THAT BANK LENDERS WOULD TRY TO PUSH SHARES UP TO THE NEW ISSUE'S PRICE OF 250 MARKS 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 9404060071 940406 BUSINESS BRIEF CENTEX TELEMANAGEMENT INC COMPANY OFFERS INFORMATION TO MFS A HOSTILE BIDDER CENTEX TELEMANAGEMENT INC OFFERED TO PROVIDE CONFIDENTIAL INFORMATION ABOUT ITS BUSINESS TO MFS COMMUNICATIONS CO OF OMAHA NEB WHICH TWO WEEKS AGO MADE A HOSTILE TAKEOVER OFFER FOR CENTEX IN RETURN FOR ITS COOPERATION CENTEX A TELECOMMUNICATIONS MANAGEMENTCONSULTING COMPANY SAID IT WANTS MFS A TELEPHONESERVER PROVIDER TO EXTEND ITS TENDER OFFER UNTIL MAY 3 AND REFRAIN FROM PURSUING LITIGATION DURING THAT TIME CENTEX WHICH REJECTED THE HOSTILE OFFER VALUED AT 161 MILLION LAST MONTH SAID IT NEEDS THE ADDITIONAL TIME TO EVALUATE ALTERNATIVES AND TO ASSURE THE INTERESTS OF CENTEX'S STOCKHOLDERS ARE PROPERLY SERVED CENTEX'S STOCK ROSE 375 CENTS TO 10375 IN LATE NASDAQ STOCK MARKET TRADING YESTERDAY MFS COMMUNICATIONS SAID IT WAS REVIEWING CENTEX'S STATEMENT 9404060070 940406 BUSINESS BRIEF MICHIGAN NATIONAL CORP BANK HOLDING CONCERN SELLS UNIT IN COSTCUTTING MOVE MICHIGAN NATIONAL CORP SAID IT AGREED TO SELL ITS LOCKWOOD BANC GROUP INC SUBSIDIARY TO DETROITBASED COMERICA INC FOR 44 MILLION OUR SHIFT IN STRATEGY REQUIRES DISPOSITION OF OUR TEXAS BANKING AFFILIATES SAID ROBERT J MYLOD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MICHIGAN NATIONAL IN JANUARY MICHIGAN NATIONAL SAID IT WAS CONSIDERING SHEDDING ITS OPERATIONS IN CALIFORNIA AND TEXAS TO REDUCE OPERATING EXPENSES IN ANOTHER COSTCUTTING MOVE THE BANK HOLDING COMPANY LAST MONTH ANNOUNCED PLANS TO CONSOLIDATE CORE FINANCIAL BUSINESSES TO REMOVE MANAGEMENT LAYERS TO OPERATE MORE EFFICIENTLY MICHIGAN NATIONAL FARMINGTON HILLS MICH ACQUIRED LOCKWOOD IN 1991 FOR 173 MILLION LOCKWOOD'S ASSETS HAVE GROWN TO 331 MILLION IN 1993 FROM 223 MILLION COMERICA ALSO A BANK HOLDING COMPANY WILL MERGE LOCKWOOD WHICH IS BASED IN HOUSTON INTO ITS COMERICATEXAS AFFILIATE THE ACQUISITION SUBJECT TO REGULATORY APPROVALS IS EXPECTED TO BE CONCLUDED IN THE FOURTH QUARTER 9404060069 940406 WHO'S NEWS TOPLEVEL LOBBYIST LEAVES CHAMBER OF COMMERCE POST WASHINGTON THE US CHAMBER OF COMMERCE REPLACED ITS CHIEF LOBBYIST WHO HAS BEEN UNDER FIRE FOR FAVORING CLINTON ADMINISTRATION POLICIES ON HEALTHCARE REFORM AND THE BUDGET WILLIAM ARCHEY SENIOR VICE PRESIDENT OF THE CHAMBER'S POLICY AND CONGRESSIONAL AFFAIRS GROUP LEFT THE ORGANIZATION BY MUTUAL AGREEMENT ACCORDING TO THE CHAMBER THE MOVE CAME SEVERAL WEEKS AFTER INTERNAL DISAGREEMENTS OVER THE ORGANIZATION'S POLICY ON HEALTHCARE CHANGES BECAME APPARENT THE ORGANIZATION'S PRESIDENT RICHARD LESHER APPOINTED BRUCE JOSTEN A 20YEAR VETERAN OF THE CHAMBER AS SENIOR VICE PRESIDENT IN CHARGE OF SEVERAL DIVISIONS INCLUDING CONGRESSIONAL LIAISON POLICY PLANNING AND MEMBERSHIP SALES MR ARCHEY COULDN'T BE REACHED FOR COMMENT CONSERVATIVE REPUBLICANS BELIEVED MR ARCHEY WAS BEHIND SUPPORT VOICED BY A CHAMBER COMMITTEE FOR A MANDATE REQUIRING EMPLOYERS TO PAY FOR PART OF THEIR EMPLOYEES' HEALTH INSURANCE MR ARCHEY ALSO WAS CRITICIZED LAST YEAR AFTER THE CHAMBER EXPRESSED SUPPORT FOR PARTS OF THE PRESIDENT'S ECONOMIC PLAN THE ORGANIZATION LATER SAID IT OPPOSED THE WHITE HOUSE ON BOTH ISSUES BILL ARCHEY WAS MORE INTERESTED IN INSIDETHEBELTWAY ACCEPTANCE THAN PROGROWTH ECONOMIC POLICIES SAID REP DICK ARMEY R TEXAS THE CONSERVATIVE LAWMAKER LIKENED THE LOBBYIST TO DICK DARMAN THE BUDGET DIRECTOR TO FORMER PRESIDENT BUSH ACCUSED OF PERSUADING MR BUSH TO BREAK HIS PROMISE TO OPPOSE TAX HIKES THE CHAMBER SAID MR ARCHEY'S DEPARTURE HAD NOTHING TO DO WITH THE EARLIER POLICY DISAGREEMENTS IN THE CONTROVERSY OVER HEALTHCARE CHANGES SOME SMALLBUSINESS GROUPS SAID THEIR MEMBERS MIGHT CANCEL THEIR CHAMBER MEMBERSHIPS IF THE ORGANIZATION BACKED THE EMPLOYER MANDATE CHARGING THE CHAMBER'S POLICY WAS DRIVEN BY LARGE CORPORATIONS INSTEAD OF THE SMALLER COMPANIES THAT MAKE UP 95 OF ITS MEMBERS 9404060068 940406 BUSINESS BRIEF ROHM & HAAS CO FIRM GETS EPA APPROVAL FOR BIOCIDE IN MARINE PAINT ROHM & HAAS CO SAID THE ENVIRONMENTAL PROTECTION AGENCY GRANTED IT PERMISSION TO MARKET A NEW FORMULATION OF A BIOCIDE CLEARING THE WAY FOR WHAT THE COMPANY CALLS ENVIRONMENTALLY FRIENDLIER MARINE PAINTS BIOCIDES ARE USED IN NAUTICAL APPLICATIONS TO SLOW THE BUILDUP OF BARNACLES ALGAE AND OTHER AQUATIC LIFE ON A SHIP'S HULL SUCH FOULANTS CAN INCREASE THE DRAG ON A SHIP'S HULL AND EVENTUALLY REQUIRE A COSTLY TRIP TO THE DRY DOCK MOST CURRENT ANTIFOULING SHIP PAINTS MAKE USE OF BIOCIDES THAT CONTAIN TIN COMPOUNDS SUCH PRODUCTS ARE COMING UNDER INCREASING REGULATORY PRESSURE BECAUSE THEY'RE THOUGHT TO BE HARMFUL TO MARINE LIFE PARTICULARLY SHELLFISH ROHM'S NEW PRODUCT KNOWN AS SEANINE 211 IS BASED INSTEAD ON AN ORGANOSULFUR COMPOUND ISOTHIAZOLONE WHICH IS DESIGNED TO HARMLESSLY DECOMPOSE IN SEA WATER THE COMPANY SAID SEANINE IS ALREADY BEING SOLD IN COUNTRIES INCLUDING JAPAN KOREA SINGAPORE AND HONG KONG THE PHILADELPHIA SPECIALTY CHEMICAL COMPANY NOTED 9404060065 940406 REVIEW & OUTLOOK EDITORIAL GREED AND HYPOCRISY HILLARY CLINTON'S MAGICAL MYSTERY TOUR THROUGH THE COMMODITY TRADING PITS IN THE LATE '70S IS NOW BEING DECONSTRUCTED BY HER DEFENDERS ELLEN GOODMAN ANTHONY LEWIS AND EVEN NINA TOTENBERG HAVE NOW TAKEN UP CUDGELS IN FAVOR OF CAPITALISM AND HONEST PROFIT OR AS THEIR TYPE ONCE CALLED IT GREED THE PRESS IS EXCITED OVER WHITEWATER MR LEWIS PHILOSOPHIZES IN THE NEW YORK TIMES BECAUSE THE CLINTONS WEREN'T HOLY CREATURES DEVOTED TO GOOD GOVERNMENT THEY WANTED TO MAKE SOME MONEY TOO MS TOTENBERG WHO WON FAME WITH ANITA HILL'S CHARGES OPINED ON INSIDE WASHINGTON ON STANDARDS OF EVIDENCE FOR MRS CLINTON'S 1000 INTO NEARLY 100000 PLOY IT WOULD BE WORTH COVERING IF SHE GOT SOMETHING SHE DIDN'T DESERVE AND THERE WAS QUID PRO QUO NO STORY MERELY BECAUSE OF SOME AIRYFAIRY OH THEY'RE HYPOCRITICAL MS GOODMAN WRITING IN THE BOSTON GLOBE ATTEMPTED AN IMPORTANT DISTINCTION IF THE CLINTONS MADE MONEY ON BEEF 15 YEARS AGO IT WASN'T A CHARACTER FLAW MAKING A PROFIT DOESN'T MAKE A HYPOCRITE THE TROUBLE WITH THE '80S WASN'T THAT A MICHAEL MILKEN MADE A FORTUNE BUT THAT HE DID SO WHILE WRECKING OTHER LIVES MS GOODMAN'S THEME IS WORTH EXPLORING IT OCCURS TO US THAT MAKING MONEY ON BEEF IN A CYNICAL SENSE LITERALLY TAKING ADVANTAGE OF THE MARKET IS THE SORT OF BRUSH WITH CAPITALISM THAT WOULD APPEAL TO THOSE MEMBERS OF A GENERATION WHOSE INTERESTS RUN TOWARD MORE SOCIALLY RESPONSIBLE FINANCIAL TRANSACTIONS FOR EXAMPLE GRANTS BY FOUNDATIONS THAT HAVE STOCKFATTENED ENDOWMENTS MRS CLINTON'S DEFENDERS HAVE RECENTLY OFFERED AN APOLOGIA FOR WHATEVER WAS GOING ON BETWEEN HER AND HER HUSBAND AND SUCH ECONOMIC PILOT FISH AS JIM MCDOUGAL AND RED BONE THEY ARGUE THAT MOST OF HER BEST WORKING EFFORT WAS RESERVED FOR THE LIKES OF EDUCATION REFORM OR THE CHILDREN'S DEFENSE FUND THIS FITS NEATLY WITH THE '60S VIEW OF THE MORAL UNIVERSE A FOUNDATION FOR EXAMPLE MIGHT DERIVE ITS SUSTAINING INCOME FROM A PREVIOUS ECONOMIC ACTIVITY SEEN AS HAVING NO SERIOUS MORAL CONTENT SUCH AS MAKING FORD AUTOMOBILES BUT THE BETTER PEOPLE ARE NOW TAKING WHAT USED TO BE MERELY CORPORATE PROFITS AND REDISTRIBUTING THEM TO GRANT SEEKERS REPRESENTING THE PUBLIC INTEREST THIS IN SUM IS THE HOLIERTHANTHOU ETHOS THAT BILL AND HILLARY CLINTON BRAGGED ABOUT IN THE 1992 CAMPAIGN AND BROUGHT WITH THEM INTO THE WHITE HOUSE THE AMERICA FOR THE 1990S WOULD BREAK WITH ITS UNREDEEMABLE RECENT PAST FORGET EVEN WHITEWATER FOR A MOMENT RECALL EARLY LAST YEAR WHEN THE PRESIDENT AND MRS CLINTON DECIDED THAT THE WAY TO POPULARIZE THEIR DESIRE TO EXPAND CHILDHOOD VACCINATION PROGRAMS WAS TO EXCORIATE THE PROFITS OF A HEARTLESS PHARMACEUTICAL INDUSTRY THIS WAS AN ACT OF DEMAGOGIC SCAPEGOATING SO BREATHTAKING THAT THE INDUSTRY'S MOST RESPECTED MEMBER MERCK CHAIRMAN ROY VAGELOS TOOK OUT NEWSPAPER ADS TO REFUTE IT BUT THEN LATER HILLARY'S PREFERRED STRATEGY FOR POPULARIZING HER HEALTH PLAN WAS TO SHOUT SPEECHES ABOUT A PROFITEERING INSURANCE INDUSTRY WHEN THE INDUSTRY DEFENDED ITSELF WITH THE HARRY AND LOUISE ADS THE WHITE HOUSE PROFESSED MORAL SUPERIORITY IN THE FACE OF CORPORATE LYING THE CLINTONS' CURRENT PROBLEMS REALLY ARE ABOUT MUCH MORE THAN THE DETAILS OF A TAX LOSS IN THE ARKANSAS OUTBACK BILL AND HILLARY CLINTON AND THEIR SUPPORTERS LIKE TO REMIND PEOPLE THAT THEY SPENT THE '80S LIKE THEY SPENT THE '60S IN A POSE OF OPPOSITION THEY BLITHELY WAVE AWAY THE ENTIRE ECONOMIC HISTORY OF THE US IN THE 1980S AS GREED THEY WE ARE GIVEN TO BELIEVE WEREN'T PARTY TO THAT BUT NOW WITH HILLARY'S COMMODITIES REVELATIONS THE SUPPORTERS OF THE '80S WE INCLUDED ARE ACCUSED OF SOMEHOW RECIPROCATING THEIR HYPOCRISY AS MS GOODMAN PUTS IT THE WALL STREET JOURNAL WHICH HAS CRITICIZED HER AS A CLOSET SOCIALIST NOW GLEEFULLY TRASHES HER AS A CLOSET CAPITALIST LET US MAKE OURSELVES CLEAR IT WOULDN'T OCCUR TO US FOR A MOMENT THAT BILL AND HILLARY'S FINANCIAL LIFE AS NOW BEING UNEARTHED BY A COMPETITIVE PRESS HAS MUCH OF ANYTHING IN COMMON WITH THE ECONOMIC LIFE OF THE '80S NOT WITH THE WORLD OF ROUTE 128 THE GENENTECHS SILICON VALLEY THE GROWTH OF EDGE CITIES THE REVIVAL OF FORD MOTOR CO NOR WITH FOR THAT MATTER MCI COMMUNICATIONS MCCAW CELLULAR TLC BEATRICE TURNER BROADCASTING AND ALL THE OTHER ENTREPRENEURIAL COMPANIES THAT GREW DURING THE 1980S WITH THE HELP OF FINANCING FROM MICHAEL MILKEN TO GIVE DUE CREDIT MRS CLINTON SAT ON THE BOARD OF WALMART STORES ARKANSAS'S BIG CONTRIBUTION TO THE 1980S BOOM YET IT'S LAUGHABLE TO THINK THAT ANY OF THIS IS RELATED TO THE WORLD OF RED BONE JIM AND SUSAN MCDOUGAL DAN LASATER OR THE FAMOUS FOUR ROSE PARTNERS OF LITTLE ROCK THE FINANCIAL LIFE OF BILL AND HILLARY CLINTON READS MORE LIKE THE MILIEU OF A DAVID MAMET PLAY IN WHICH GLIB FIVEANDDIMERS SWIM ALONG THE EDGES OF THE REAL ECONOMY LIVING ON FANCY TALK CUTTING CORNERS AND HOPING THAT ONE OF THE BIG BOYS WILL OFFER THEM A PIECE OF THE 100 SURE THING THE DEFENDERS KEEP SAYING THAT THE CLINTONS' BUSINESS HISTORY COMPARED WITH THEIR CURRENT LARGE RESPONSIBILITIES IS SO MUCH PETTY FINANCIAL JUGGLING THEY'RE RIGHT ON THE EVIDENCE SO FAR IT IS ALL VERY PENNYANTE AND THERE SEEMS TO BE SO MUCH OF IT 9404060064 940406 LETTERS TO THE EDITOR VITAMIN OVERDOSING IS EASY TO PREVENT IN REFERENCE TO THE MARCH 2 ARTICLE NIACIN USED FOR CHOLESTEROL CALLED TOXIC I STRONGLY DISAGREE WITH THE VIEWS EXPRESSED BY THE RESEARCHERS AT THE MEDICAL COLLEGE OF VIRGINIA QUOTING FROM THE ARTICLE ALLOWING NIACIN TO REMAIN ON THE NONPRESCRIPTION MARKET WHERE IT MAY BE USED IN HIGH DOSES FOR CHOLESTEROL LOWERING WITHOUT PROPER MONITORING BY TRAINED HEALTH PROFESSIONALS PRESENTS A POTENTIALLY SERIOUS PUBLIC HEALTH PROBLEM I TAKE NIACIN SUPPLEMENTS ALONG WITH OTHER VITAMIN SUPPLEMENTS DAILY AS THE ARTICLE GOES ON TO STATE LIVER PROBLEMS FIRST BECAME EVIDENT WHEN THE DOSAGE REACHED 1500 MILLIGRAMS A DAY MOST ANYTHING TAKEN IN SUBSTANTIAL QUANTITIES IS HARMFUL WHY ISOLATE THE VITAMIN INDUSTRY THE PROBLEM OF OVERDOSING ON VITAMINS CAN BE SOLVED EASILY BY PLACING A WARNING LABEL ON THE OUTSIDE OF THE CONTAINER NEEDING A PRESCRIPTION TO PURCHASE VITAMINS WOULD DO NOTHING MORE THAN RAISE THE COST TO THE END USER 9404060063 940406 TEXAS JOURNAL WINNERS & LOSERS LLOYD BENTSEN US CURRENCY WILL START CARRYING THE TREASURY SECRETARY'S SIGNATURE AFTER A YEAR'S DELAY FOR A NEW TREASURER TO BE APPOINTED BARRY SWITZER THE FORMER SOONERS FOOTBALL COACH WAS PLUCKED FROM RETIREMENT TO REPLACE JIMMY JOHNSON AT THE HELM OF THE DALLAS COWBOYS FORT WORTH ARTS FANS DESIGNS FOR A NEW 60 MILLION PERFORMANCE HALL TO BE BUILT WITH PRIVATE AND FOUNDATION MONEY WILL BE UNVEILED TODAY TEXAS DRIVERS DESPITE A TWOYEAROLD LAW MAKING AUTO INSURANCE COMPULSORY ROUGHLY ONE IN FIVE DRIVERS STILL DON'T HAVE COVERAGE BAE AUTOMATED SYSTEMS THE CARROLLTON AUTOMATEDBAGGAGESYSTEM COMPANY COULD FACE PENALTIES FOR DELAYING DENVER INTERNATIONAL AIRPORT'S OPENING HOUSTON GAMBLERS HOUSTON POLICE SHUT DOWN A CAR WASH WHICH THEY ALLEGE WAS A FRONT FOR AN ILLEGAL GAMBLING OPERATION TAKING IN 1 MILLION A MONTH IN BETS 9404060062 940406 BUSINESS BRIEF EASTEX ENERGY INC PACT TERMINATED TO ACQUIRE SOME ASSETS OF NIPSCO UNIT EASTEX ENERGY INC SAID IT TERMINATED ITS AGREEMENT TO ACQUIRE CERTAIN ASSETS OF A UNIT OF NIPSCO INDUSTRIES INC OF HAMMOND IND EASTEX ENERGY A NATURALGAS TRADING COMPANY IN HOUSTON SAID IN DECEMBER THAT IT INTENDED TO ACQUIRE NIPSCO ENERGY SERVICE INC'S WHOLLY OWNED SUBSIDIARY NIPSCO ENERGY TRADING CO AND NIPSCO ENERGY SERVICE'S 51 INTEREST IN TRIUMPH NATURAL GAS INC NIPSCO INDUSTRIES IS A HOLDING COMPANY WHOSE SUBSIDIARIES SERVE ELECTRIC AND GAS CUSTOMERS IN NORTHERN INDIANA EASTEX ENERGY SAID THE AGREEMENT WAS TERMINATED BECAUSE TRIUMPH'S BOARD OF DIRECTORS DIDN'T APPROVE A PORTION OF IT WHICH CALLED FOR THE TRANSFER OF NIPSCO ENERGY SERVICE'S STOCK IN TRIUMPH NATURAL GAS TO EASTEX ENERGY PRIOR TO MARCH 31 9404060061 940406 CORRECTION IN THE MARCH 30 LETTERS TO THE EDITOR LAURIE FLYNN IS MISIDENTIFIED SHE IS EXECUTIVE DIRECTOR OF THE NATIONAL ALLIANCE FOR THE MENTALLY ILL BASED IN ARLINGTON VA 9404060060 940406 LETTERS TO THE EDITOR HOMEWORK AT HOME HEY NOT IN AMERICA IN YOUR MARCH 18 EDITORIAL HIT THE BOOKS WE LEARN THAT AS TIME SPENT ON HOMEWORK INCREASES SO DO THE GRADE POINT AVERAGES OF IMMIGRANT CHILDREN HOME FOR MANY OF THESE CHILDREN IS THE PLACE YOU BRING ALL YOUR BOOKS EVERY NIGHT A RUSSIAN STUDENT WITH SEVEN SIBLINGS TOLD ME SHE WAS 16 WHEN SHE REALIZED THAT AMERICANS USED THE LARGE TABLE IN THEIR HOUSE FOR DINING NOT AS THE FAMILY STUDY CENTER AMERICAN PARENTS COMPLAIN ABOUT HOMEWORK HOW CAN YOU EXPECT ME TO READ 15 MINUTES A NIGHT WITH MY DAUGHTER WHEN MY SON'S VARSITY FOOTBALL ACTIVITIES COME FIRST A MOTHER ASKED PACK IT IN A MIDDLE SCHOOL COLLEAGUE ADMONISHED WE GAVE UP COMPETING WITH TV AND ACTIVITIES LONG AGO WHAT'S MORE IF YOU GIVE HOMEWORK YOU'VE GOT TO CHECK IT THEN WE GRIPE ABOUT HIGH FOREIGN ENROLLMENT AT OUR TOP UNIVERSITIES 9404060059 940406 BUSINESS BRIEF ELJER INDUSTRIES INC LENDERS EXTEND LOAN A YEAR BUT REQUIRE HIGHER INTEREST ELJER INDUSTRIES INC DALLAS SAID ITS LENDERS AGREED TO EXTEND BY A YEAR THE TERM OF A 1018 MILLION LOAN BUT AT A HIGHER INTEREST RATE THE MAKER OF PLUMBING PRODUCTS SAID THE AGREEMENT WHICH AMENDS A 1992 DEBTRESTRUCTURING ACCORD CHANGES THE LOAN'S MATURITY DATE TO APRIL 30 1996 THE INTEREST RATE WAS RAISED TO THE PRIME RATE PLUS 15 WITH ADDITIONAL HALFPERCENTAGEPOINT INCREASES AT SIXMONTH INTERVALS UNTIL MATURITY THE INTEREST RATE HAD BEEN THE PRIME RATE PLUS 1 THE AMENDED AGREEMENT SPECIFIES THAT ELJER WOULDN'T BE CONSIDERED IN DEFAULT IF ITS US BRASS CORP UNIT WERE TO FILE FOR BANKRUPTCYLAW PROTECTION ELJER SAID IN FEBRUARY THAT A BANKRUPTCYCOURT REORGANIZATION OF THE UNIT WHICH FACES CONTINUING LIABILITY STEMMING FROM A DEFECTIVE POLYBUTYLENE PIPE SYSTEM IT SOLD WAS ONE OF SEVERAL OPTIONS BEING CONSIDERED 9404060055 940406 WHO'S NEWS NOVELL HIRES FRANKENBERG HE PLEDGES TO UNIFY FIRM PROVO UTAH NOVELL INC THE BIGGEST SUPPLIER OF NETWORKING SOFTWARE FOR PERSONAL COMPUTERS NAMED ROBERT FRANKENBERG 46 YEARS OLD CHIEF EXECUTIVE OFFICER AND PRESIDENT SUCCEEDING RAYMOND NOORDA WHO REMAINS CHAIRMAN THE HIRING OF MR FRANKENBERG COMES AS NOVELL IS POISED TO COMPLETE A 1 BILLION ACQUISITION OF WORDPERFECT CORP A LEADING SUPPLIER OF WORDPROCESSING AND OTHER PC PROGRAMS THE DEAL WILL VAULT NOVELL INTO SECOND PLACE AMONG PC SOFTWARE MAKERS THOUGH THE COMPANY WILL STILL BE LESS THAN HALF THE SIZE OF MICROSOFT CORP THE BIGGEST SUPPLIER NOVELL ROSE 150 TO 18375 YESTERDAY IN OVERTHECOUNTER TRADING PARTLY ON THE STRENGTH OF MR FRANKENBERG'S DECISION TO JOIN NOVELL HIGHLY REGARDED FOR HIS GRASP OF BOTH TECHNICAL AND BUSINESS ISSUES MR FRANKENBERG HAS SPENT 25 YEARS AT HEWLETTPACKARD CO A COMPUTER AND ELECTRONICS COMPANY IN AN INTERVIEW MR FRANKENBERG SAID THAT HE WILL MELD TOGETHER THE DISPARATE PIECES OF NOVELL WHOSE RECENT FLURRY OF ACQUISITIONS HAS PROMPTED JITTERS THAT FORGING A SINGLE COMPELLING STRATEGY WILL BE DIFFICULT SOME OBSERVERS ARE LESS OPTIMISTIC NOVELL WAS BUILT LIKE HOUSTON NO ZONING NO PLANNING JUST ALLOUT GROWTH SAID CRAIG BURTON A FORMER EXECUTIVE AND A CONSULTANT IN SALT LAKE CITY WHILE AGREEING THE CHOICE OF MR FRANKENBERG AS CHIEF EXECUTIVE IS A GOOD ONE HE SAID I DON'T THINK ANYONE HAS ENOUGH QUALIFICATIONS TO TAKE ON THIS JOB 9404060054 940406 BUSINESS BRIEF WMS INDUSTRIES INC TO ACQUIRE TRADEWEST IN HOMEVIDEO PUSH CHICAGO WMS INDUSTRIES INC FURTHERED ITS RECENT PUSH INTO THE HOME VIDEOGAME MARKETPLACE WITH A DEFINITIVE AGREEMENT TO ACQUIRE TRADEWEST INC A CLOSELY HELD DESIGNER AND MARKETER OF HOMEVIDEO GAMES TERMS OF THE PACT CALL FOR AN INITIAL PAYMENT OF 15 MILLION AND UNDISCLOSED ADDITIONAL PAYMENTS CONTINGENT ON TRADEWEST'S FUTURE PERFORMANCE WMS HISTORICALLY HAS MANUFACTURED COINOPERATED VIDEO GAMES FOR USE IN ARCADES INCLUDING THE POPULAR MORTAL KOMBAT AND NBA JAM GAMES THEN LICENSED THE ARCADE GAMES TO PUBLISHERS OF SOFTWARE FOR HOMEVIDEO GAMES EARLIER THIS MONTH HOWEVER WMS FORMED A JOINT VENTURE WITH A UNIT OF JAPAN'S NINTENDO CO THE VENTURE WILL DEVELOP AND PRODUCE GAMES FOR BOTH ARCADE AND HOME APPLICATIONS AND SPLIT THE HOMEVIDEO PROFITS EVENLY THE COMPANY SAID YESTERDAY THAT THE ACQUISITION OF CORSICANA TEXASBASED TRADEWEST PROVIDES IT WITH AN ESTABLISHED HOMEVIDEO GAME DEVELOPMENT GROUP WORLDWIDE DISTRIBUTION NETWORK AND INDUSTRY LICENSES THE NEW ARRANGEMENT THE COMPANY SAID WILL GIVE IT GREATER CONTROL OVER THE DISTRIBUTION OF ITS GAMES IN THE HOME MARKET AND YIELD FUTURE HIGHER PERUNIT PROFITS FROM HOMEGAME CARTRIDGES BASED ON ITS ARCADE GAMES ACCLAIM ENTERTAINMENT INC HAS BEEN WMS'S PARTNER FOR HOMEVIDEO GAMES IN THE PAST THAT RELATIONSHIP WAS OBVIOUSLY CRIMPED BY WMS' RECENT LINK WITH NINTENDO IN AN INTERVIEW YESTERDAY WMS PRESIDENT NEIL NICASTRO SAID WE WILL NOT CONTINUE OUR RELATIONSHIP WITH ACCLAIM WHEN THAT RELATIONSHIP EXPIRES IN 1995 9404060053 940406 BUSINESS BRIEF VINTAGE PETROLEUM INC SOME OIL AND GAS PROPERTIES ARE PURCHASED FROM ZILKHA VINTAGE PETROLEUM INC SAID IT ACQUIRED OIL AND GAS PROPERTIES FROM CLOSELY HELD ZILKHA ENERGY CO OF HOUSTON FOR ABOUT 149 MILLION IN CASH VINTAGE PETROLEUM OF TULSA OKLA SAID MOST OF THE PROPERTIES ARE IN THE COLGRADE FIELD IN WINN PARISH LA AND THE SOUTH DANBURY AND ORD FIELDS IN BRAZORIA AND GOLIAD COUNTIES TEXAS THE OIL AND NATURAL GAS COMPANY SAID IT OPERATES SUBSTANTIALLY ALL OF THE ACQUIRED PROPERTIES WHICH PRODUCE AN AVERAGE OF ABOUT 740 BARRELS OF OIL AND 800000 CUBIC FEET OF GAS A DAY VINTAGE PETROLEUM SAID THE OIL IS SOLD UNDER CONTRACTS EXPIRING OCT 1 1999 THE COMPANY SAID THOSE CONTRACTS HAVE A FIXED PRICE OF ABOUT 21 A BARREL FOR THE FIRST 150 BARRELS OF DAILY PRODUCTION FOR THE REMAINING DAILY OIL PRODUCTION THE COMPANY SAID IT RECEIVES A FLOATING PRICE BASED ON THE AVERAGE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FUTURES SETTLEMENT PRICE LESS 25 CENTS 9404060052 940406 PANEL TO QUERY TREASURY ON MEXICAN STOCK TRADING WASHINGTON THE CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE HAS OPENED AN INQUIRY INTO THE TREASURY DEPARTMENT'S ROLE IN DELAYING US TRADING IN MEXICAN STOCKS AFTER THE ASSASSINATION OF PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO COMMITTEE CHAIRMAN JOHN DINGELL D MICH ASKED FOR DETAILS OF CONTACTS BETWEEN THE TREASURY AND THE SECURITIES AND EXCHANGE COMMISSION ABOUT THE DELAY MR DINGELL SAID HE WANTS TO KNOW IF TREASURY OFFICIALS TRIED TO EXERT IMPROPER POLITICAL PRESSURE ON THE SEC MR DINGELL SAID US LAWS ON SUSPENSION OF SECURITIES TRADING DON'T PROVIDE FOR A TREASURY VETO CONSULTATION WITH TREASURY OR ANY OTHER TREASURY ROLE THE OPENING OF US TRADING IN THE AMERICAN DEPOSITARY RECEIPTS FOR MEXICAN COMPANIES WAS DELAYED 30 MINUTES MARCH 24 THE DAY AFTER MR COLOSIO'S ASSASSINATION MR DINGELL CITED A MARCH 28 ARTICLE IN THE WALL STREET JOURNAL ABOUT MEXICAN OFFICIALS' CONVERSATIONS WITH TREASURY OFFICIALS REGARDING SUPPORT OF THE PESO AND POSSIBLE CLOSURE OF US TRADING IN MEXICAN STOCKS FOR THE DAY 9404060051 940406 TEXAS JOURNAL LETTERS TO THE EDITOR CLEARING THINGS UP AT THE BORDER WE APPRECIATE THAT MICHAEL TOTTY CONSIDERED ENVIRONMENTAL MANAGEMENT CORP OF SUFFICIENT INTEREST TO USE AS A VEHICLE TO DEMONSTRATE HIS THESIS THAT ENTERING THE ENVIRONMENTAL INDUSTRY ALONG THE TEXASMEXICO BORDER IS NOT A SURE BET STARTUP WANTS TO CLEAN UP AT THE BORDER MARCH 16 HOWEVER A SERIES OF MISSTATEMENTS AND OMISSIONS HAS THE EFFECT OF PAINTING A MISLEADING PICTURE OF ENVIRONMENTAL MANAGEMENT ITS BUSINESS PLAN ITS PROSPECTS AND ESPECIALLY OF THE BACKGROUND AND CHARACTER OF ITS PRESIDENT GARY D ZINTGRAFF ANY STARTUP BUSINESS CARRIES RISK A FACT THAT ENVIRONMENTAL MANAGEMENT'S PROSPECTUS POINTS OUT TO POTENTIAL INVESTORS HOWEVER MEASURES CAN BE TAKEN TO MITIGATE BUSINESS RISK MR TOTTY NEGLECTED TO SAY THAT ENVIRONMENTAL MANAGEMENT'S INITIAL PUBLIC OFFERING IS REGISTERED WITH THE STATE SECURITIES BOARD OF TEXAS A MATERIAL FACT ON PAR WITH THE COMPANY'S DECISION WHICH YOU DID MENTION NOT TO REGISTER THE OFFERING WITH THE SECURITIES AND EXCHANGE COMMISSION SEC REGISTRATION FOR ENVIRONMENTAL MANAGEMENT STOCK AND LISTING ON NASDAQ THIS YEAR ARE GOALS OF THE COMPANY'S BOARD GOALS MAY OR MAY NOT BE MET BUT MR TOTTY WITHOUT REPORTING OUR GOALS SIMPLY STATED THAT SEC REGISTRATION WON'T HAPPEN BEFORE NEXT YEAR A SECOND PROTECTION FOR ENVIRONMENTAL MANAGEMENT'S INVESTORS WHICH THE ARTICLE OMITTED IS THE REQUIREMENT THAT ALL PROCEEDS FROM THE INITIAL PUBLIC OFFERING BE DEPOSITED IN AN ESCROW ACCOUNT UNTIL A MINIMUM OF 1 MILLION IS SUBSCRIBED THIS MONEY WITH INTEREST MUST BE RETURNED TO INVESTORS IF THE MINIMUM AMOUNT IS NOT REACHED ONLY WHEN THE OPERATING REVENUE IS RELEASED FROM ESCROW WILL ENVIRONMENTAL MANAGEMENT BEGIN EXECUTING THE BUSINESS PLAN TO HAVE DONE A LITTLE BUSINESS TO SHOW OPERATING REVENUE SOONER WOULD HAVE SUBVERTED THE BUSINESS PLAN MISUSED THE CAPITAL RAISED EARLIER BY PRIVATE PLACEMENT AND ENDANGERED COMPLETION OF THE INITIAL PUBLIC OFFERING HAVING THE PUBLIC OFFERING UNDERWRITTEN AND SOLD BY A NETWORK OF BROKERS MIGHT WELL HAVE BEEN EASIER BUT IT WOULD CERTAINLY HAVE CUT INTO OPERATING CAPITAL INSTEAD THE ISSUE IS SELFUNDERWRITTEN A PRACTICE MORE COMMON TO PRIVATE PLACEMENTS BUT HARDLY A SHADY ACTIVITY AS YOUR ARTICLE SEEMS TO IMPLY A THIRD PROTECTION FOR INVESTORS AS WELL AS A BUSINESS ASSET IS GOOD MANAGEMENT MR TOTTY TOOK ONE ITEM FROM MR ZINTGRAFF'S RESUME THAT HE HAD STARTED AND RUN A COMPANY THAT HAD FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION AND PROCEEDED TO CHARACTERIZE HIS BUSINESS CAREER AS CHECKERED IN FACT THE CHAPTER 11 REORGANIZATION OF CHEMICAL INVESTORS INC IN 1983 WAS ONE OF MANY DISASTROUS RESULTS OF THE SOARING INTEREST RATES IN THE EARLY 1980S BEFORE THAT CHEMICAL INVESTORS HAD BEEN THE FOURTHFASTESTGROWING SMALL PUBLIC COMPANY IN THE NATION ACCORDING TO INC MAGAZINE THE REORGANIZATION IS DISCLOSED IN ENVIRONMENTAL MANAGEMENT'S PROSPECTUS ALONG WITH MR ZINTGRAFF'S BUSINESS AND MANAGERIAL ACCOMPLISHMENTS IN ADDITION WHAT RELEVANCE DOES MR ZINTGRAFF'S BUSINESS CAREER HAVE TO BUSINESS CONDITIONS IN THE TEXAS ENVIRONMENTAL INDUSTRY ON THE OTHER HAND SPEAKING STRICTLY OF ENVIRONMENTAL MANAGEMENT MR ZINTGRAFF'S TRAINING AND EXPERIENCE IN THE VENTURECAPITAL AND SECURITIES INDUSTRY AS WELL AS IN PROFESSIONAL ENGINEERING IS GERMANE TO THE COMPANY'S IMMEDIATE PROSPECTS THE IMPLICATION THAT MR ZINTGRAFF A REGISTERED PROFESSIONAL ENGINEER IN INDIANA IS SOMEHOW OUT OF TOUCH WITH THE ENVIRONMENTAL INDUSTRY BECAUSE HE TOOK TIME TO BROADEN HIS BUSINESS BACKGROUND MUST BE VIEWED SKEPTICALLY AS WELL MR ZINTGRAFF HAS SPENT A GOOD PART OF THE PAST FOUR YEARS IN RESEARCHING THE MARKET AND ENVIRONMENTAL TECHNOLOGIES POSITIONING THE COMPANY IN THE CURRENT MUNICIPAL BID CYCLES AND IDENTIFYING SMALL WELLRUN ENVIRONMENTAL COMPANIES FOR FUTURE ACQUISITION 9404060050 940406 FEDERAL JUDGE ORDERS DISTRIBUTION OF ASSETS IN WYMER FRAUD CASE LOS ANGELES A FEDERAL JUDGE ORDERED THAT 4 MILLION OF ASSETS BELONGING TO CALIFORNIA MONEY MANAGER STEVEN D WYMER BE DISTRIBUTED TO 17 DEFRAUDED FORMER CLIENTS MR WYMER 46 YEARS OLD IS SERVING A 14YEAR SEVENMONTH PRISON SENTENCE AFTER PLEADING GUILTY TO NINE FELONY COUNTS OF RACKETEERING MAIL FRAUD BANK FRAUD SECURITIES FRAUD AND OBSTRUCTION OF JUSTICE IN SEPTEMBER 1992 IN A RELATED LAWSUIT FILED BY THE SECURITIES AND EXCHANGE COMMISSION IN 1991 THE SEC ALLEGED MASSIVE FRAUD BY MR WYMER AND THE COMPANIES HE CONTROLLED INCLUDING INSTITUTIONAL TREASURY MANAGEMENT INC AND DENMAN & CO MR WYMER AND THE COMPANIES AGREED TO PAY RESTITUTION OF 209 MILLION TO FORMER CLIENTS IN THE LATEST RULING JUDGE ROBERT J KELLEHER ORDERED THAT PROCEEDS FROM THE SALE OF THE ASSETS BE DISTRIBUTED ACCORDING TO THE SIZE OF THE LOSS INCURRED BY CLIENTS THAT INCLUDED NUMEROUS MUNICIPALITIES THE ASSETS WHICH STILL ARE BEING SOLD INCLUDE HOMES IN CALIFORNIA IDAHO NEW YORK AND FLORIDA ALONG WITH ART A FERRARI SPORTS CAR AND OTHER VEHICLES 9404060049 940406 BUSINESS BRIEF GTECH CORP NEBRASKA LOTTERY CONTRACT FOR 202 MILLION IS AWARDED GTECH CORP WAS AWARDED A LOTTERY CONTRACT BY THE STATE OF NEBRASKA VALUED AT ABOUT 202 MILLION OVER SIX YEARS JIM QUINN ACTING DIRECTOR OF THE NEBRASKA LOTTERY SAID THE CONTRACT CALLS FOR THE WEST GREENWICH RIBASED COMPANY TO RECEIVE 913 OF TICKET SALES FOR SETTING UP COMPUTERIZED LOTTERY GAMES INCLUDING THE MULTISTATE POWERBALL GTECH DIDN'T DISCLOSE FINANCIAL DETAILS IN A NEWS RELEASE BUT MR QUINN SAID GTECH'S CONTRACT PROPOSAL PROJECTS THAT ONLINE LOTTERY GAMES IN NEBRASKA WILL TAKE IN 2205 MILLION OVER THE NEXT SIX YEARS THE ONLINE SYSTEM IS EXPECTED TO BE INSTALLED BY THIS SUMMER AND WILL BE OPERATED BY GTECH FROM A DATA CENTER IN LINCOLN NEB THE CONTRACT ALSO CALLS FOR GTECH TO PROVIDE AND MAINTAIN AS MANY AS 900 RETAIL TERMINALS ACOSS THE STATE CURRENTLY NEBRASKA'S LOTTERY OFFERS ONLY INSTANT TICKET GAMES MR QUINN SAID THE FIRST ONLINE GAME WILL BE POWERBALL THE LOTTERY GAME LINKING 15 STATES AND THE DISTRICT OF COLUMBIA OTHER COMPUTERIZED GAMES ARE EXPECTED TO FOLLOW HE SAID 9404060048 940406 WHO'S NEWS MARQUEST'S PRESIDENT AND CHIEF OBERMEYER RESIGNS BOTH POSITIONS ENGLEWOOD COLO MARQUEST MEDICAL PRODUCTS INC SAID ITS PRESIDENT AND CHIEF EXECUTIVE CHARLES M OBERMEYER RESIGNED FROM THOSE JOBS AFTER HOLDING THEM LESS THAN A YEAR THE MAKER OF MEDICAL PRODUCTS SAID MR OBERMEYER 51 YEARS OLD ALSO RESIGNED AS A DIRECTOR BUT REMAINS AN EMPLOYEE OF THE COMPANY AND WILL WORK ON MAJOR PROJECTS INCLUDING LITIGATION PENDING AGAINST THE COMPANY REFINANCINGS AND POTENTIAL EXPANSION ACTIVITIES MARQUEST'S CHAIRMAN JAMES E BRANDS WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE ALSO ASSUMING SOME OF MR OBERMEYER'S DUTIES IS WILLIAM J THOMPSON A DIRECTOR WHO WAS NAMED VICE CHAIRMAN AND CHIEF OPERATING OFFICER MR BRANDS SAID THE MANAGEMENT CHANGES WERE MUTUAL AND AMICABLE HE SAID THAT MR OBERMEYER WAS INSTRUMENTAL IN TURNING MARQUEST AROUND FROM DIFFICULTIES STEMMING FROM REGULATORY PROBLEMS BUT THAT IT WAS AGREED HE SHOULDN'T CONTINUE RUNNING THE COMPANY DAY TO DAY MR OBERMEYER COULDN'T BE REACHED FOR COMMENT MR BRANDS 56 HAS BEEN THE COMPANY'S CHAIRMAN FOR A YEAR HE IS ALSO VICE CHAIRMAN OF SCHERER HEALTHCARE INC ATLANTA WHICH CONTROLS 65 OF MARQUEST MR THOMPSON 60 IS ALSO PRESIDENT OF SCHERER HEALTHCARE 9404060047 940406 BUSINESS BRIEF NYNEX CORP PACTS SIGNED WITH AT&T FUJITSU TO UPGRADE NETWORK NYNEX CORP SIGNED A PAIR OF AGREEMENTS TO UPGRADE ITS TELEPHONE NETWORK AND PROVIDE THE SYSTEM WITH NEW CAPABILITIES INCLUDING A 10YEAR PACT WITH AT&T VALUED AT UPWARD OF 500 MILLION THE AGREEMENTS WERE SIGNED WITH AMERICAN TELEPHONE & TELEGRAPH CO AND WITH FUJITSU LTD AS PART OF NYNEX'S 22 BILLION ANNUAL BUDGET FOR ADDING TO ITS TELEPHONE NETWORK DIGITAL TECHNOLOGY THAT CAN CARRY MULTIMEDIA SERVICES NYNEX IN NEW YORK SAYS THAT BY 1998 ALL OF ITS 161 MILLION LINES WILL BE DIGITAL TECHNOLOGY CURRENTLY 72 OF THE LINES ARE DIGITAL AND THE LATEST DEALS WILL BOOST THAT TO 86 THE MOVE ALSO ALLOWS NYNEX WHICH PROVIDES LOCAL PHONE SERVICE IN THE NORTHEAST TO REDUCE PERSONNEL THE COMPANY HAS SET PLANS TO CUT 17000 JOBS AT&T WILL PROVIDE NYNEX WITH 5ESS SWITCHES THAT HANDLE CALLS AND ROUT THEM FUJITSU WILL PROVIDE FIBER OPTIC TECHNOLOGY CALLED SYNCHRONOUS OPTICAL NETWORK WHICH TRANSMITS DATA FASTER THAN MOST CURRENT EQUIPMENT 9404060046 940406 TECHNOLOGY BRIEF GLAXO HOLDINGS PLC LONGACTING ASTHMA DRUG INTRODUCED TO US PATIENTS GLAXO INC HAS BEGUN SELLING ITS LONGACTING ASTHMA MEDICATION IN THE US THE DRUG SEREVENT AN INHALED BRONCHODILATOR THAT IS EFFECTIVE IN PREVENTING ASTHMA SYMPTOMS FOR 12 HOURS IS AVAILABLE IN 50 COUNTRIES SAID THE RESEARCH TRIANGLE PARK NCBASED UNIT OF GLAXO HOLDINGS PLC OF LONDON SALES OF THE PRESCRIPTION DRUG IN THE YEAR ENDED JUNE 30 TOTALED ROUGHLY 118 MILLION GLAXO SAID THE DRUG WHICH WORKS BY DILATING AIRWAYS SO THAT AIR CAN PASS IS THE FIRST INHALED ASTHMA MEDICATION THAT IS LONGACTING AND CAN BE TAKEN JUST TWICE A DAY THE DRUG IS FOR PEOPLE 12 YEARS AND OLDER WITH MODERATE TO SEVERE CASES AT A COST OF 3996 FOR A MONTH'S SUPPLY A GLAXO SPOKESWOMAN SAID THERE ARE ROUGHLY 12 MILLION PEOPLE OR ABOUT 5 OF THE US POPULATION WHO HAVE ASTHMA 9404060045 940406 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN SOME PROCRASTINATORS MIGHT MISS AN ATTRACTIVE OFFER IF THEY DON'T ACT SOON PEOPLE FACED WITH A BIGGER 1993 TAX BILL BECAUSE OF THE RETROACTIVE RATE INCREASES IN THE NEW TAX LAW MAY DEFER PAYING PART OF THE ADDITIONAL MONEY THEY OWE OVER THE NEXT TWO YEARS FOR INSTANCE SOMEONE WHO OWES 12000 MORE BECAUSE OF THE HIGHER RATES COULD PAY 4000 BY APRIL 15 4000 BY APRIL 1995 AND 4000 BY APRIL 1996 TO QUALIFY FOR THIS SPECIAL OFFER YOU MUST HAVE PAID AT LEAST 90 OF YOUR ACTUAL 1993 TAX MINUS TWOTHIRDS OF THE TAX ADDED BY THE NEW LAW'S HIGHER RATES BY APRIL 15 OF THIS YEAR THUS SAYS ROBERT J GARNER OF ERNST & YOUNG UPPERINCOME TAXPAYERS WHO FILE FOR AN AUTOMATIC FOURMONTH EXTENSION BY APRIL 15 SHOULD MAKE A SPECIAL EFFORT TO ESTIMATE THEIR TAX BILL AS ACCURATELY AS POSSIBLE BEFORE THEN THEY SHOULD ALSO BE SURE TO PAY AT LEAST THE MINIMUM AMOUNT REQUIRED BY THAT DATE HE SAYS SEE NEW IRS FORM 8841 FOR DETAILS ON CALCULATING HOW MUCH MAY BE DEFERRED NEW TAX RULES COULD TRIM RETURNS FOR SOME UNSUSPECTING BOND INVESTORS WITH BOND PRICES IN A TAILSPIN LATELY MANY ISSUES NOW ARE TRADING WAY BELOW FACE VALUE TAXFREE BOND PRICES HAVE FALLEN ESPECIALLY SHARPLY WHICH MAY TEMPT SOME BARGAINHUNTERS TO START BUYING ONCE AGAIN BUT BEFORE YOU LEAP REMEMBER THAT THE 1993 TAX LAW CHANGES THE WAY PROFITS ARE TAXED ON MUNICIPAL BONDS PURCHASED IN THE RESALE MARKETS AT A DISCOUNT FROM FACE VALUE BECAUSE OF THE NEW LAW PART OR ALL OF ANY PROFIT ON MARKETDISCOUNT BONDS BOUGHT AFTER APRIL 30 LAST YEAR MAY BE TAXED AS ORDINARY INCOME NOT SOLELY AS A CAPITAL GAIN ROBERT WILLENS AT LEHMAN BROTHERS OFFERS THIS EXAMPLE SUPPOSE YOU PAY 90 CENTS ON THE DOLLAR TO BUY A MUNICIPAL BOND WITH 10 YEARS LEFT UNTIL IT MATURES YOU SELL THE BOND IN MAY 1995 AT 92 A GAIN OF 20 FOR EACH 1000 FACE AMOUNT HALF YOUR GAIN WOULD BE ORDINARY INCOME HALF A LONGTERM CAPITAL GAIN HE SAYS MANY PEOPLE PROBABLY DON'T REALIZE THIS NEW RULE WILL LOWER THEIR AFTERTAX RETURNS MR WILLENS WARNS INSTANT REPLAY AN APPEALS COURT WILL REVIEW ITS OWN DECISION ON DEFERRED PAY IN AN UNUSUAL MOVE THE US APPEALS COURT FOR THE NINTH CIRCUIT HAS AGREED TO RECONSIDER ITS CONTROVERSIAL RULING LATE LAST YEAR IN A CASE INVOLVING ALBERTSON'S A BOISE IDAHO FOOD AND DRUGSTORE CHAIN IN DECEMBER A THREEJUDGE PANEL ALLOWED ALBERTSON'S TO DEDUCT INTEREST CURRENTLY THAT IT HAD AGREED TO GIVE SOME EXECUTIVES AND A DIRECTOR ON THEIR DEFERRED PAY EVEN THOUGH THE COMPANY WON'T ACTUALLY PAY FOR YEARS THE CASE IS SLATED TO BE REARGUED JUNE 15 IN SAN FRANCISCO BEFORE THE SAME PANEL TREASURY OFFICIALS AND MANY TAX LAWYERS WERE STUNNED BY THE DECEMBER RULING SEN PRYOR AN ARKANSAS DEMOCRAT HAS INTRODUCED A BILL TO OVERTURN THE DECISION WHICH HE SAYS POTENTIALLY COULD COST THE TREASURY BILLIONS OF DOLLARS FOR A PREFERENTIAL TAX REGIME THAT WAS NEVER INTENDED BY CONGRESS THE IRS THIS WEEK REITERATED ITS OPPOSITION TO ALBERTSON'S STANCE THIS IS AN ENORMOUSLY IMPORTANT CASE SAYS MARY B HEVENER A LAWYER AT MCDERMOTT WILL & EMERY IN WASHINGTON EVERYONE IS WATCHING IT GUCCI GULCH MOVES TO 1111 CONSTITUTION AVE HOME OF THE IRS FOR A HEARING THIS MORNING AT 10 ON PROPOSED REGULATIONS ON ALLOCATING COSTS TO LOBBYING ACTIVITIES REPRESENTATIVES OF 19 ORGANIZATIONS COMPANIES AND FIRMS ARE SCHEDULED TO SPEAK BOYCOTTERS IRS RECORDS SHOW 1150 CORPORATIONS 50 PARTNERSHIPS AND FIVE INDIVIDUALS REPORTED PARTICIPATING DURING 1991 IN UNSANCTIONED INTERNATIONAL BOYCOTTS SUCH AS THOSE AGAINST ISRAEL NONE OF THE TAXPAYERS WERE IDENTIFIED MANY COMPANIES ARE CHALLENGING STATE AND LOCAL PROPERTYTAX ASSESSMENTS AND WINNING ACCORDING TO A SURVEY BY COOPERS & LYBRAND MORE THAN 75 OF THE 375 COMPANIES SURVEYED CHALLENGED THEIR ASSESSMENTS AND ALMOST 90 VIEWED THEIR CHALLENGE AS SUCCESSFUL SAYS DENNIS NEILSON OF COOPERS MORE TAXPAYERS TAKE ADVANTAGE OF AN IRS OFFER TO FILE TAX RETURNS BY PHONE THE IRS IS ALLOWING TAXPAYERS IN SEVEN STATES TO FILE BY PHONE THIS YEAR AS OF MARCH 25 THE IRS HAD RECEIVED 470000 RETURNS BY TELEFILE THAT IS 85 OF THE 550000 IT PROJECTED IT WILL RECEIVE THIS YEAR LAST YEAR THE PROGRAM WAS AVAILABLE ONLY IN OHIO THIS YEAR IT ALSO IS OFFERED IN FLORIDA KENTUCKY INDIANA MICHIGAN SOUTH CAROLINA AND WEST VIRGINIA THE PROGRAM IS AVAILABLE ONLY TO SINGLE TAXPAYERS WITH NO DEPENDENTS WHO WOULD OTHERWISE USE FORM 1040EZ WHICH MEANS INCOME UNDER 50000 ALSO THE OFFER APPLIES ONLY TO PEOPLE WHO RECEIVED A SPECIAL TAX PACKAGE IN JANUARY CALLERS USE A TOUCHTONE PHONE TO ENTER INCOME AND WITHHOLDING FIGURES THE IRS FIGURES THE TAX AND ANY REFUND OR TAX OWED WHILE THE CALLER IS ON THE LINE MOST TAXPAYERS THEN MAIL A SPECIAL RETURN WITH W2 FORMS ATTACHED BUT IN SOUTHERN OHIO THE IRS IS TESTING A PAPERFREE RETURN WITH TAXPAYERS USING A VOICE SIGNATURE BRIEFS TAX CUT FEVER HONG KONG OFFICIALS PROPOSE TAX CUTS THAT WOULD MEAN 58 OF THE WORK FORCE OF 28 MILLION PEOPLE WOULDN'T OWE ANY TAXES ON SALARY UP SHARPLY FROM 43 NOW HUMOR COLUMNIST DAVE BARRY SUGGESTS THIS MOTTO FOR THE IRS WE'LL ANSWER THE TAXPAYER ASSISTANCE HOTLINE WHEN YOU PRY THE COFFEE CUP FROM OUR COLD DEAD FINGERS EVER WONDER WHY THE IRS CALLS IT FORM 1040 COMEDIAN JAY LENO EXPLAINS FOR EVERY 50 YOU EARN YOU GET 10 AND THEY GET 40 9404060044 940406 COMMODITIES MOST COMMODITY FUTURES FALL FOR SECOND DAY IN A ROW AS FUNDS CONTINUE TO UNLOAD HOLDINGS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRICES OF MOST COMMODITY FUTURES FELL FOR THE SECOND DAY IN A ROW AS FUNDS CONTINUED TO UNLOAD THEIR HOLDINGS WHAT WE'RE SEEING ACROSS THE BOARD IN COMMODITIES IS A GENERAL LIQUIDATION PHASE THAT'S BEING LED BY VERY AGGRESSIVE FUND SELLING IN ALL MARKETS SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH & CO IN NEW YORK THE KNIGHTRIDDER COMMODITY RESEARCH BUREAU INDEX FELL 164 POINTS YESTERDAY ENDING THE DAY AT 22438 ITS LOWEST LEVEL THIS YEAR WE JUST SET THE HIGH SO FAR THIS YEAR MARCH 25 AT 23089 SAID MR O'NEILL THE FACT THAT WE'RE BACK DOWN SO QUICKLY ILLUSTRATES THE NERVOUSNESS OF THIS MARKET ANALYSTS SAID THEY BELIEVE THERE IS LITTLE FUNDAMENTAL REASON FOR THE SELLING PRESSURE BEHIND MANY OF THE COMMODITIES WHICH POSTED PRICE DECLINES ON THE DAY THEY ATTRIBUTE THE TWO DAYS OF DECLINES TO THE DAMPING EFFECT RISING INTEREST RATES HAVE HAD ON INFLATIONARY FEARS RISING RATES TRIGGERED A WAVE OF PROFITTAKING IN MANY COMMODITIES AND THEN A FLOOD FOR FURTHER SALES FROM THE FUNDS PLAYERS SAW GAINS AT THE END OF MARCH FOR THE FIRST TIME IN A WHILE AND IT STRUCK ME AS THOUGH THEY JUST DECIDED TO REALIZE SOME OF THOSE SAID MARK FITZSIMMONS SENIOR VICE PRESIDENT OF MILBURN RICHFIELD CORP WHICH MANAGES 600 MILLION OF FUTURES FUNDS BERNARD SAVAIKO SENIOR ANALYST AT PAINEWEBBER INC SAID AN IMPORTANT FACTOR IN THE NEGATIVE MARKET SENTIMENT THAT HAS DOMINATED MOST COMMODITIES MARKETS THIS WEEK IS THE REPORT ON HOLDINGS OF TRADERS RELEASED LATE LAST WEEK BY THE COMMODITIES FUTURES TRADING COMMISSION HE SAID THE REPORT INDICATED THAT MANY TRADERS WERE OVERBOUGHT IN SPECULATIVE COMMODITIES IN THE SECOND HALF OF MARCH IT WAS JUST A MATTER OF TIME BEFORE IT BROKE HE ADDED THE FINAL STRAW COULD HAVE BEEN THE FACT THAT THE PRECIOUSMETAL MARKETS APPEARED STALLED FAILING TO MOVE HIGHER EVEN WHEN STOCK AND BOND PRICES PLUMMETED WE DIDN'T SEE THE GREAT RALLY IN METALS THAT WE WERE LOOKING FOR WHEN THE STOCK MARKET FELL SAID JAMES STEEL AN ANALYST WITH REFCO INC IN NEW YORK MR SAVAIKO NOTED THAT THE KRCRB INDEX IS APPROACHING A MAIN TECHNICAL BARRIER OF 22427 IF IT MOVES LOWER HE SAID THE INDEX COULD FALL TO 218 BEFORE INVESTORS DECIDE TO STEP BACK INTO THE FUTURES MARKETS BUT SOME ANALYSTS SAID INFLATION IS FAR FROM DEAD AND THAT PRICES OF SOME COMMODITIES COULD CONTINUE TO MOVE HIGHER A CASE IN POINT IS COPPER AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR MAY DELIVERY FELL 080 CENT TO SETTLE AT 8700 CENTS A POUND THE PRICE OF THE METAL PEAKED IN MARCH AT ABOUT 93 CENTS A POUND UP FROM 74 CENTS A POUND IN NOVEMBER TRADING FUNDAMENTALS CONTINUE TO LOOK VERY STRONG MINE PRODUCTION IS FALLING CONSUMPTION IS UP AND INVENTORIES ARE RATHER SHARPLY LOWER SAID FRED DEMLER METALS ECONOMIST AT E D & F MAN A NEW YORK COMMODITY BROKERAGE COMPANY ANIRVAN BANERJI RESEARCH ECONOMIST AT THE CENTER FOR INTERNATIONAL BUSINESS CYCLE RESEARCH AT COLUMBIA UNIVERSITY SAID HE EXPECTS CORE INDUSTRIAL MATERIALS COMMODITIES SUCH AS COPPER AND INCLUDING COTTON ALUMINIUM ZINC RUBBER AND LUMBER TO STRENGTHEN INDICATING FURTHER INFLATIONARY PRESSURES COULD BE ON THE WAY BUT PLAYERS LIKE MR FITZSIMMONS REMAIN WARY IT'S HARD TO SAY THAT ANYTHING IS UNFAIRLY PRICED AT THESE LEVELS HE SAID THE MARKET IS STILL A LITTLE LEERY ABOUT THE INTERESTRATE OUTLOOK AND WE COULD BE MORE LIKELY TO SEE SOME SIDEWAYS VOLATILITY THAN SHARP MOVES HIGHER OR LOWER IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS PLATINUM AGAIN LED THE DECLINES IN PRECIOUS METALS WITH PLATINUM FOR JULY DELIVERY DROPPING 810 TO 41040 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE AFTER FALLING 840 ON MONDAY THE LACK OF RECENT BAD NEWS FROM SOUTH AFRICA HAS WEAKENED PRICES SAID REFCO'S MR STEEL NOTING THAT RECENT UNREST HAS BEEN IN NATAL WELL AWAY FROM MOST OF SOUTH AFRICA'S MINES HE SAID HE EXPECTS THE PRICE TO HEAD BELOW 400 AN OUNCE SOON UNLESS THE PENDING SOUTH AFRICAN ELECTIONS ERUPT INTO CIVIL WAR OR SOME OTHER EVENT TRIGGERS A SUPPLY DISRUPTION MR DEMLER OF E D & F MAN DESCRIBES THE SELLOFF AS REMOVING A LOT OF FLUFF FROM THE PLATINUM MARKET IN THE WAKE OF A RASH OF SPECULATIVE BUYING IN RECENT MONTHS OTHER PRECIOUS METALS ALSO FELL BUT POSTED SMALLER DECLINES THAN YESTERDAY GOLD FOR JUNE DELIVERY WAS DOWN 200 TO 38670 A OUNCE ON NEW YORK'S COMMODITY EXCHANGE WHILE THE PRICE OF THE MAY SILVER CONTRACT FELL 37 CENTS TO SETTLE AT 5555 AN OUNCE SUGAR THE PRICE OF WORLD SUGAR FUTURES DROPPED SHARPLY ON NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE WITH THE CONTRACT FOR MAY DELIVERY FALLING 080 CENT TO SETTLE AT 1105 CENTS A POUND MARKET ANALYSTS SAID THERE WAS LITTLE FUNDAMENTAL REASON FOR THE MOVE OTHER THAN WHAT PAINEWEBBER'S MR SAVAIKO REFERRED TO AS ABNORMALLY HEAVY BUYING OF THE MAY CONTRACT IT WAS PRETTY CLEAR THAT THE SPECULATORS HAD BUILT UP LARGE POSITIONS AND WEREN'T GOING TO TAKE DELIVERY SO THAT PRICE WAS GOING TO GET HAMMERED ANYWAY WHEN THEY LIQUIDATED HE SAID THE SPECULATORS SEEMED TO BE OVERLY LONG OVERBOUGHT IN SUGAR AS WELL AS MANY OTHER COMMODITIES 9404060043 940406 BUSINESS BRIEF ARCH PETROLEUM INC TEXAS OIL CONCERN PURCHASES NEW MEXICO FUEL PROPERTIES ARCH PETROLEUM INC SAID IT PAID CHEVRON USA INC 179 MILLION FOR OIL AND NATURAL GAS PROPERTIES IN LEA COUNTY NEW MEXICO CHEVRON USA IS AN OIL AND NATURALGAS PRODUCTION UNIT OF CHEVRON CORP SAN FRANCISCO THE PURCHASE PRICE WAS LESS THAN THE 20 MILLION ARCH PETROLEUM REPORTED IN FEBRUARY BECAUSE SIX OF THE 130 WELLS IT PLANNED TO ACQUIRE WERE WITHHELD ARCH PETROLEUM'S RANDALL W SCROGGINS SAID MR SCROGGINS SAID THE SIX WELLS ARE SUBJECT TO ACQUISITION BY AN UNIDENTIFIED THIRD PARTY FOR ABOUT 45 DAYS IF THAT PARTY DOESN'T PURCHASE THEM ARCH PETROLEUM AN OIL AND NATURALGAS COMPANY BASED IN FORT WORTH TEXAS WILL ACQUIRE THE WELLS FOR THE REMAINING 21 MILLION HE SAID ARCH PETROLEUM ESTIMATED PROVEN RESERVES ATTRIBUTABLE TO THE PURCHASE ARE 23 MILLION BARRELS OF OIL AND 181 BILLION CUBIC FEET OF NATURAL GAS 9404060042 940406 ECONOMY TOP TEAMSTERS CALL FOR STRIKE OF TRUCK FIRMS WALKOUT OF 75000 DRIVERS COULD DISRUPT RETAILERS AND MAJOR INDUSTRIES BY KEVIN G SALWEN AND DANIEL MACHALABA STAFF REPORTERS OF THE WALL STREET JOURNAL TEAMSTERS UNION LEADERS CALLED ON ABOUT 75000 DRIVERS FOR FREIGHT COMPANIES TO STRIKE BEGINNING EARLY THIS MORNING UNION PRESIDENT RONALD CAREY HELD OUT THE POSSIBILITY THAT THE WALKOUT COULD BE AVOIDED IF MANAGEMENT SIGNALED A RETURN TO BARGAINING BUT DRIVERS WERE TOLD YESTERDAY AFTERNOON THAT THEY SHOULD PREPARE TO STRIKE BEGINNING AT 1201 AM TODAY A STRIKE COULD CAUSE DISRUPTIONS FOR MAJOR INDUSTRIES AND RETAILERS AND BOOST THE RATES THEY PAY FOR TRANSPORTING THEIR GOODS FREIGHT COMPANIES THAT EMPLOY TEAMSTERS BLANKET THE COUNTRY WITH LONGHAUL ROUTES THAT HANDLE A WIDE VARIETY OF SMALL SHIPMENTS RANGING FROM CLOTHING TO ELECTRONICS CHEMICALS TO AUTO PARTS ANALYSTS SAY A STRIKE COULD BE TROUBLESOME BECAUSE CARRIERS AND RAILROADS THAT MIGHT ORDINARILY TAKE UP THE SLACK ALREADY ARE EXPERIENCING STRONG DEMAND THE ECONOMY IS SHOWING SIGNS OF ACCELERATION WHICH HAS CREATED TIGHTNESS IN CAPACITY THROUGHOUT THE TRANSPORTATION INDUSTRY SAID JEFFREY MEDFORD AN ANALYST AT WHEAT FIRST BUTCHER SINGER IN RICHMOND VA THE STRIKE WOULD TARGET 22 COMPANIES AFFILIATED WITH TRUCKING MANAGEMENT THE NEGOTIATING ARM OF THE UNIONIZED FREIGHT CARRIERS AT ISSUE ARE DEMANDS BY THE COMPANIES TO USE MORE PARTTIME WORKERS AS WELL AS WAGE AND BENEFIT ISSUES AND GRIEVANCE PROCEDURES THE COMPANIES PUT A FINAL OFFER ON THE TABLE LAST THURSDAY PROPOSING A 133 INCREASE IN WAGES AND BENEFITS AND A CAP ON THE NUMBER OF HOURS THAT PARTTIMERS COULD BE USED BUT UNION OFFICIALS HAVE FOUND THOSE TERMS UNACCEPTABLE THE LESSTHANTRUCKLOAD CARRIERS THAT EMPLOY TEAMSTERS HAVE ANNUAL REVENUES OF 14 BILLION TO 15 BILLION OR LESS THAN 10 OF THE TOTAL INTERCITY TRUCKING REVENUES THE BIG CARRIERS IN THIS GROUP INCLUDE SUBSIDIARIES OF YELLOW CORP OVERLAND PARK KAN CONSOLIDATED FREIGHTWAYS INC MENLO PARK CALIF AND ROADWAY SERVICES INC AKRON OHIO LESSTHANTRUCKLOAD CARRIERS CONSOLIDATE SMALL SHIPMENTS FROM A VARIETY OF COMPANIES INTO A SINGLE TRAILER LAST NIGHT CAROLINA FREIGHT CORP AGREED TO ACCEPT WHATEVER ACCORD IS REACHED BETWEEN THE UNION AND TRUCKING MANAGEMENT AS A RESULT THE 5200 TEAMSTERS EMPLOYED THERE WON'T STRIKE TODAY THE BATTLE IS YET ANOTHER TWIST IN MR CAREY'S TUMULTUOUS TURN AT THE HELM OF THE NATION'S LARGEST UNION OF NONGOVERNMENT EMPLOYEES IT IS UNCLEAR WHETHER A STRIKE CALL WOULD BE HEEDED BY MANY LOCALS SOME OF WHOM ARE LIKELY TO BE ENCOURAGED TO MUTINY BY TEAMSTERS LEADERS POLITICALLY OPPOSED TO MR CAREY LAST MONTH DISSIDENT LEADERS HELPED ENGINEER A RESOUNDING DEFEAT OF MR CAREY'S PROPOSAL TO BOOST UNION DUES 25 A PROPOSAL DESIGNED IN PART TO BOLSTER THE UNION'S AILING STRIKE FUND TO SUPPORT A POSSIBLE STRIKE AGAINST THE FREIGHT COMPANIES MR CAREY HAS LINED UP 80 MILLION IN CREDIT FROM THE AFLCIO AND OTHERS TO PAY BENEFITS TO DRIVERS YESTERDAY AN INFORMAL VOTE OF ABOUT 400 LEADERS OF TEAMSTERS LOCALS UNANIMOUSLY BACKED THE WALKOUT MR CAREY SAID ARTHUR BUNTE JR PRESIDENT OF TRUCKING MANAGEMENT CALLED THE STRIKE MOVE AN ACT OF IRRESPONSIBLE LEADERSHIP THAT WILL DESTROY JOBS NOT PROTECT THEM 9404060041 940406 INFORMATION RESOURCES AGAIN REDUCES A PROFIT ESTIMATE STOCK FALLS 125 BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL INFORMATION RESOURCES INC RETREATING FROM A COSTLY PRICE WAR WITH ARCHRIVAL NIELSEN MARKETING SERVICES SLASHED ITS EARNINGS ESTIMATE FOR THE SECOND TIME IN TWO MONTHS AND SENT ITS WOBBLY STOCK TUMBLING SHARES FELL 125 TO CLOSE AT 14 DOWN 2 IN NASDAQ STOCK MARKET TRADING ON VOLUME OF ABOUT 56 MILLION SHARES SINCE EARLY FEBRUARY INFORMATION RESOURCES' STOCK HAS LOST NEARLY TWOTHIRDS OF ITS MARKET VALUE OR 712 MILLION AS INVESTORS SKITTISH ABOUT NEARTERM PROSPECTS FOR THE CHICAGOBASED INFORMATIONSERVICES CONCERN FLED THE STOCK ACKNOWLEDGING THAT DUN & BRADSTREET CORP'S NIELSEN UNIT WAS DIVERTING ITS ANTICIPATED REVENUE STREAM INFORMATION RESOURCES SAID IT NOW EXPECTED TO REPORT EARNINGS OF 10 CENTS A SHARE FOR THE FIRST QUARTER LESS THAN HALF WHAT WALL STREET HAD FORECAST BEFORE THE REVISION THE FIRST CALL CONSENSUS AMONG ANALYSTS HAD BEEN FOR 23 CENTS IN THE FIRST QUARTER AND 117 FOR THE FULL YEAR NOW THE COMPANY SAID IT EXPECTS TO EARN ABOUT 65 CENTS A SHARE IN 1994 COMPARED WITH 89 CENTS IN 1993 WHICH INCLUDED A SEVENCENT ACCOUNTING GAIN THE COMPANY ALSO SAID IT IS EVALUATING A POSSIBLE ACCOUNTING ADJUSTMENT THAT COULD REDUCE CURRENTYEAR EARNINGS BY 10 CENTS A SHARE ANALYSTS INTERPRETED THAT AS OVERDUE RECOGNITION THAT IT MAY HAVE BEEN TOO AGGRESSIVE IN BOOKING REVENUE FROM NEW INFOSCAN CONTRACTS UP FRONT IF THE CHANGE IS IMPLEMENTED INFORMATION RESOURCES SAID 1995 PERSHARE EARNINGS COULD BE 1 TO 110 AMONG OTHER THINGS INFORMATION RESOURCES USES SCANNERS IN SUPERMARKETS TO COLLECT AND INTERPRET SALES DATA FOR HUNDREDS OF PACKAGEDGOODS COMPANIES THAT BUSINESS IS CALLED INFOSCAN THE COMPANY ALSO ANALYZES FINANCIAL AND MARKETING DATA FOR GOVERNMENT AGENCIES AND CORPORATIONS IN EARLY FEBRUARY THE COMPANY SENT ITS SHARES PLUNGING MORE THAN 8 A SHARE BY ANNOUNCING THAT 1993'S FOURTH QUARTER WAS BELOW EXPECTATIONS PARTLY BECAUSE OF A SHORTAGE OF NEWCLIENT BUSINESS THE LATEST MARKDOWN WAS AN ADMISSION THAT THE NEGATIVE INFLUENCES THAT HAD AFFECTED THE FOURTH QUARTER WHICH THEY SAID WERE TEMPORARY WERE NOT SAID JAMES DOUGHERTY AN ANALYST AT DEAN WITTER REYNOLDS HE WAS AMONG ABOUT 100 ANALYSTS AND INSTITUTIONAL INVESTORS WHO LISTENED TO A 90MINUTE CONFERENCE CALL WITH SENIOR MANAGEMENT YESTERDAY MORNING THE COMPANY ATTRIBUTED THE FIRSTQUARTER DECLINE TO AN INTENSIFICATION OF PRICE COMPETITION IN THE DOMESTIC INFORMATION BUSINESS THAT LIMITED THE COMPANY'S ABILITY TO WIN NEW CLIENTS AS WELL AS A DELAY IN ROLLING OUT WINDOWS VERSIONS OF SOME SOFTWARE AND SLIGHTLY HIGHERTHANANTICIPATED LOSSES OVERSEAS IN SOME CASES NIELSEN HAS OFFERED DISCOUNTS OF AS MUCH AS 50 TO ATTRACT OR RETAIN CLIENT COMPANIES INFORMATION RESOURCES PRESIDENT JAMES G ANDRESS SAID CALLING THAT EFFORT UNPRECEDENTED IN DEGREE BREADTH AND LENGTH A NIELSEN SPOKESWOMAN SAID THE COMPANY WOULD BE ASTONISHED TO FIND THAT OUR PRICES ARE 50 TO 60 BELOW IRI'S NIELSEN RECENTLY RENEWED CONTRACTS WITH SEVERAL MAJOR CLIENTS INCLUDING GENERAL MILLS INC WHILE WOOING BRISTOLMYERS SQUIBB CO AND TWO JOHNSON & JOHNSON UNITS BACK FROM INFORMATION RESOURCES BOTH CONTRACTS REPRESENT SEVERAL MILLION DOLLARS IN ANNUAL REVENUE CONTENDING THAT THE BATTLE WILL INCREASINGLY BE OVER THE QUALITY OF SERVICES RATHER THAN PRICE CHAIRMAN GIAN FULGONI SAID INFORMATION RESOURCES WILL CONCENTRATE ON ENHANCING ITS COMPUTERBASED TECHNOLOGY WE WANT TO TAKE RESOURCES THAT HAD BEEN ALLOCATED TO NEWCLIENT SALES THEY ARE VERY SUBSTANTIAL AND FOCUS EFFORTS ON OUR EXISTING CLIENT BASE HE SAID MR FULGONI ALSO SAID THE COMPANY HAS SECURED 50 MILLION IN BORROWINGS FROM HARRIS BANK OF CHICAGO TO FINANCE THE TECHNOLOGICAL WORK DIRK GODSEY AN ANALYST WITH HAMBRECHT & QUIST IN SAN FRANCISCO SAID MANAGEMENT SEES AN OPPORTUNITY TO DIFFERENTIATE THEIR BUSINESS FROM NIELSEN IN THEIR CUSTOMERS' EYES ADDING THE LESS ATTRACTIVE ROUTE WOULD BE TO TRY TO WIN A PRICE WAR WITH NIELSEN 9404060040 940406 INTERNATIONAL BRIEF HOECHST AG PACT SET WITH COURTAULDS TO MERGE FIBERS OPERATIONS HOECHST AG OF GERMANY AND THE UK'S COURTAULDS PLC HAVE MERGED THEIR ACRYLIC AND VISCOSE FIBER OPERATIONS INTO A JOINT VENTURE WITH A PROJECTED 920 MILLION MARKS 5428 MILLION IN ANNUAL TURNOVER THOSE FIBER OPERATIONS ARE RELATIVELY SMALL AT CHEMICAL GROUP HOECHST ONE OF THE WORLD'S LARGEST SYNTHETICFIBER PRODUCERS WITH 68 BILLION MARKS IN 1993 FIBER SALES HOECHST SOUGHT A PARTNER TO BUTTRESS THE UNIT AND GIVE IT ENOUGH CRITICAL MASS TO COMPETE IN WORLD MARKETS A SPOKESWOMAN SAID IN THE VENTURE HOECHST'S OPERATIONS WILL YIELD ABOUT 330 MILLION MARKS IN SALES AND WILL HAVE 2450 WORKERS COURTAULDS IS A DIVERSE UK MANUFACTURER WITH A MAJOR TEXTILES UNIT THE NEWLY CREATED COMPANY WILL HAVE A EUROPEAN MARKET SHARE OF 30 FOR VISCOSE FIBERS AND 25 FOR ACRYLIC FIBERS OPERATIONS WILL BE IN GRIMSBY AND BRADFORD IN THE UK BARCELONA IN SPAIN AND KELHEIM IN GERMANY 9404060039 940406 WHAT'S NEWS WORLDWIDE BLACKMUN PLANS TO ANNOUNCE HIS RETIREMENT FROM THE SUPREME COURT THE JUSTICE COULD ANNOUNCE AS EARLY AS TODAY THAT HE WILL RETIRE IN JUNE BLACKMUN 85 THE COURT'S OLDEST MEMBER HAS TALKED OF RETIRING FOR THE PAST FEW YEARS AS RECENTLY AS LAST MONTH THOUGH HE WAS SAID TO BE CONSIDERING STAYING ON THE COURT FOR ANOTHER TERM WHITE HOUSE AIDES HAVE BEEN PREPARING A LIST OF POSSIBLE SUCCESSORS WITH SENATE MAJORITY LEADER MITCHELL THE TOP CANDIDATE BLACKMUN IS DETERMINED TO HAVE HIS SUCCESSOR CHOSEN BY CLINTON BECAUSE OF THE PRESIDENT'S PLEDGE TO APPOINT JUSTICES WHO WOULD SUPPORT THE 1973 ROE VS WADE ABORTIONRIGHTS DECISION UP TO 2000 CIVILIANS FLED VILLAGES NEAR GORAZDE AS SERBS ADVANCED A UN SPOKESMAN SAID THE REFUGEES HAD FLED A DOZEN VILLAGES IN THE PATH OF SERB TROOPS PUSHING TOWARD THE MUSLIM ENCLAVE IN EASTERN BOSNIA SERB TANK AND ARTILLERY COLUMNS REPORTEDLY WERE TWO MILES FROM GORAZDE'S CENTER AND ATTACKS WERE CONTINUING WESTERN NATIONS MEANWHILE GAVE NO INDICATION THEY WOULD INTERVENE US JOINT CHIEFS CHAIRMAN SHALIKASHVILI SAID NATO AIR POWER WOULD BE INEFFECTIVE IN GORAZDE IN NEW YORK BOSNIA'S UN AMBASSADOR ACCUSED UN OFFICIALS IN SARAJEVO OF MISLEADING THE SECURITY COUNCIL ABOUT THE SEVERITY OF THE LATEST SERB OFFENSIVE BERLUSCONI BROKE OFF TALKS ON THE FORMATION OF ITALY'S NEXT GOVERNMENT THE MEDIA MAGNATE'S ANNOUNCEMENT THOUGH NOT UNEXPECTED CAST DOUBT OVER THE ABILITY OF HIS FREEDOM ALLIANCE TO PUT TOGETHER A RULING COALITION BEFORE PARLIAMENT CONVENES APRIL 15 FOR THE FIRST TIME SINCE LAST WEEK'S ELECTIONS THOUSANDS OF NATIONALIST ZULUS DEFIED A STATE OF EMERGENCY IN SOUTH AFRICA'S NATAL PROVINCE BY CARRYING SPEARS AND OTHER TRADITIONAL WEAPONS DURING A MARCH IN THE CITY OF EMPANGENI THE DEMONSTRATION INTENDED TO SHOW SUPPORT FOR A SOVEREIGN ZULU STATE ENDED WITHOUT VIOLENCE CHINESE POLICE THREATENED TO PRESS NEW CRIMINAL CHARGES AGAINST FORMER POLITICAL PRISONER WEI JINGSHENG THE POLICE WHO TOOK WEI INTO CUSTODY FOUR DAYS AGO DIDN'T SAY WHERE HE WAS BEING HELD THE US AND SOUTH KOREA ARE LIKELY TO HOLD JOINT WAR GAMES THIS YEAR THE PENTAGON SAID THE EXERCISE WAS SUSPENDED LAST MONTH TO ENCOURAGE NORTH KOREA TO ALLOW NUCLEAR INSPECTIONS BUT PYONGYANG HAS REFUSED TO PERMIT ACCESS TO THE SITES THE US ALSO SAID THE FIRST OF TWO SHIPLOADS OF PATRIOT MISSILES HAS LEFT FOR SOUTH KOREA THE CLINTON ADMINISTRATION SUPPORTS SYRIA'S CLAIM TO THE GOLAN HEIGHTS BUT ISRAEL ISN'T PREPARED TO SURRENDER ALL OF THE STRATEGIC TERRITORY IN EXCHANGE FOR A PEACE TREATY THE SECRETARYGENERAL OF ISRAEL'S RULING LABOR PARTY SAID IN WASHINGTON MEANWHILE ISRAEL ALLOWED 50 PALESTINIAN EXILES TO RETURN TO THE WEST BANK AND GAZA STRIP TURKEY'S PRIME MINISTER UNVEILED AUSTERITY MEASURES AIMED AT REDUCING A 43 BILLION BUDGET DEFICIT CILLER SAID HER SHOCK THERAPY WOULD INCLUDE NEW TAXES LAYOFFS WAGE FREEZES THE CLOSING OF SOME STATEOWNED FIRMS LARGESCALE PRIVATIZATION AND BIG PRICE INCREASES ON GASOLINE TOBACCO AND SUGAR IRAQ REPORTEDLY IS OFFERING BOUNTIES POSSIBLY AS HIGH AS 10000 TO ANYONE WHO KILLS UN RELIEF WORKERS AND OTHER FOREIGNERS IN KURDISHCONTROLLED NORTHERN IRAQ THE US SAID BUT THE STATE DEPARTMENT ADDED THAT IT HADN'T ANY DIRECT EVIDENCE OF THE BOUNTIES AN EXPERIMENT WITH 300 WOMEN FOUND THAT A VITAMIN A OINTMENT SIMILAR TO THAT USED TO TREAT ACNE CAN CAUSE PRECANCEROUS CELLS IN THE CERVIX TO REVERT TO NORMAL ABOUT 40 OF ALZHEIMER'S PATIENTS MADE GAINS IN MEMORY AND ATTENTION SPAN AFTER TAKING HIGH DOSES OF THE DRUG COGNEX ACCORDING TO A NEWLY PUBLISHED STUDY THAT LED TO THE DRUG'S RECENT APPROVAL THE STUDY ALSO FOUND MORE EVIDENCE OF THE SHORTCOMINGS AND SIDE EFFECTS OF THE WARNERLAMBERT DRUG FORMER REP CARROLL HUBBARD PLEADED GUILTY TO THREE FELONY COUNTS INVOLVING CAMPAIGN VIOLATIONS THE KENTUCKY DEMOCRAT WHO SERVED 18 YEARS IN CONGRESS FACES UP TO 20 YEARS IN PRISON AND A 750000 FINE HIS WIFE PLEADED GUILTY TO A MISDEMEANOR COUNT THE COUPLE HAD RUN UNSUCCESSFULLY IN DIFFERENT CONGRESSIONAL DISTRICTS IN 1992 9404060038 940406 LEGAL BEAT FISKE SUBPOENAS SPUR CAMPAIGNS TO WIN CLIENTS BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LAWYERS HERE WILL DO JUST ABOUT ANYTHING TO GET A WHITEWATER CLIENT EVEN CUT THEIR FEES THE FLURRY OF SUBPOENAS FROM SPECIAL COUNSEL ROBERT FISKE SUMMONING CLINTON ADMINISTRATION OFFICIALS TO APPEAR BEFORE A FEDERAL GRAND JURY HAS ACTIVATED AN ELITE CIRCLE OF DEFENSE LAWYERS IN WASHINGTON OVER THE YEARS THESE LAWYERS HAVE TURNED THE CITY'S FREQUENT SCANDALS INTO A LEGAL SPECIALTY AND NOW TO ATTRACT OR KEEP CLIENTS WHO MUST TESTIFY IN CONNECTION WITH WHITEWATER SOME OF THEM ARE OFFERING DISCOUNTS ON THEIR HOURLY RATES WHICH RUN AS HIGH AS 450 AN HOUR WITHOUT THE DISCOUNTS MANY OF THE CLIENTS WOULD HAVE TROUBLE HIRING HIGHPRICED TALENT ON GOVERNMENT SALARIES SOME LAWYERS ARE EVEN RESEARCHING WHETHER THEY CAN DO THE WORK FOR FREE WITHOUT HAVING THEIR CLIENTS RUN AFOUL OF FEDERAL ETHICS RULES FOR ONE THING THIS IS AN INSTANT WAY TO GET PUBLICITY SAYS ONE LAWYER STANLEY BRAND A WASHINGTON LAWYER WHO REPRESENTS WHITE HOUSE ADVISER GEORGE STEPHANOPOULOS SAYS HE HAS LONG HAD A SEPARATE RATE FOR GOVERNMENT CLIENTS BECAUSE THEY DON'T HAVE THE RESOURCES THAT PRIVATE PEOPLE DO THE WASHINGTON GRAND JURY IS EXAMINING WHETHER ANY ADMINISTRATION OFFICIALS ATTEMPTED TO OBSTRUCT FEDERAL INVESTIGATIONS INTO MADISON GUARANTY SAVINGS & LOAN THE DEFUNCT S&L THAT IS TIED TO THE WHITEWATER MESS TESTIMONY OF THE DOZEN SUBPOENAED OFFICIALS BEFORE THE GRAND JURY IS EXPECTED TO BE COMPLETED THIS WEEK MEANWHILE SUCH LAWYERS AS ROBERT BENNETT THE CURRENT DEAN OF THE WHITECOLLAR BAR HERE ARE GETTING NEARLY THE LEVEL OF ATTENTION USUALLY RESERVED FOR THEIR HIGHLEVEL CLIENTS MR BENNETT ALONG WITH PARTNER ALAN KRIEGEL OF SKADDEN ARPS SLATE MEAGHER & FLOM ACTUALLY HAVE TWO WHITEWATERRELATED CLIENTS HAROLD ICKES DEPUTY WHITE HOUSE CHIEF OF STAFF AND JOHN PODESTA WHITE HOUSE STAFF SECRETARY THE ONLY OTHER FIRM THAT HAS TWO IS THE WHITECOLLAR DEFENSE BOUTIQUE ZUCKERMAN SPAEDER GOLDSTEIN TAYLOR & KOLKER WILLIAM TAYLOR III REPRESENTS BOTH LISA CAPUTO PRESS SECRETARY TO THE FIRST LADY AND THOMAS MCLARTY WHITE HOUSE CHIEF OF STAFF NOT EVERY LAWYER IN THE LATEST BUDDING SCANDAL IS A WASHINGTON INSIDER AND SOME PEOPLE APPEAR TO HAVE EXPRESSLY SHIED AWAY FROM RETAINING THOSE WITH CRIMINAL EXPERTISE BECAUSE THEY FEAR BEING TAINTED BY ASSOCIATION I DON'T BELIEVE THAT THERE ARE GOING TO BE ANY CRIMINAL PROCEEDINGS ARISING OUT OF THIS SO I DON'T THINK THAT PEOPLE NEED TO HAVE LAWYERS THAT THEY CAN COUNT ON TO TAKE A CRIMINAL CASE TO TRIAL SAYS ALLEN SNYDER A PARTNER AT THE WASHINGTON FIRM OF HOGAN & HARTSON WHO IS REPRESENTING BRUCE LINDSEY THE WHITE HOUSE PERSONNEL DIRECTOR MR SNYDER IS CONSIDERED A SPECIALIST IN CIVIL LITIGATION AND LEGAL ETHICS ELITE WASHINGTON FIRMS USED TO LOOK ASKANCE AT WHITECOLLAR DEFENSE WORK THE IDEA OF REPRESENTING DEFENDANTS OR OTHERS IN CONNECTION WITH CRIMINAL OR ETHICS PROCEEDINGS WAS CONSIDERED UNSAVORY AND WAS LEFT TO A FEW SPECIALISTS LIKE THE LATE EDWARD BENNETT WILLIAMS WHO REPRESENTED TEAMSTER PRESIDENT JIMMY HOFFA IN THE 1950S IT WASN'T CONSIDERED TO BE BIGFIRM RESPECTABLE WORK SAYS DAVID ROLL THE MANAGING PARTNER AT STEPTOE & JOHNSON A MAJOR WASHINGTON FIRM THE ATTITUDE CHANGED HOWEVER WITH THE DEFENSE PROCUREMENT SCANDALS OF THE 1970S AND 1980S WHICH MARKED A MAJOR FINANCIAL BOON FOR THE BAR WATERGATE AND ENSUING POLITICAL SCANDALS PROVED THERE COULD BE A STEADY MARKET FOR SUCH WORK A SERIES OF POSTWATERGATE LAWS ALLOWING FOR THE PAYMENT OF LEGAL FEES BY STATUTE UNDER CERTAIN CIRCUMSTANCES ALSO HELPED ALTHOUGH GETTING PAID IN POLITICAL CASES REMAINS A PROBLEM AND MOST BIGTIME DEFENSE LAWYERS EARN THEIR BIGGEST FEES IN CORPORATE CASES WHEN YOU REPRESENT POLITICAL FIGURES THE REMUNERATION IS NOT AS GREAT OBVIOUSLY COMPARED WITH CORPORATE DEFENDANTS SAYS PLATO CACHERIS A LONGTIME DEFENSE PRACTITIONER WHO CURRENTLY REPRESENTS ACCUSED SPY ALDRICH AMES HE ADDS ALL OF US HAVE STORIES ABOUT NOT BEING PAID SOME CLIENTS HAVE RELIED ON PERSONAL CONNECTIONS TO RETAIN LEGAL COUNSEL DEPUTY TREASURY SECRETARY ROGER ALTMAN TURNED TO THE NEW YORK FIRM OF SIMPSON THACHER & BARTLETT WHICH DID HIS LEGAL WORK IN HIS INVESTMENT BANKER DAYS ON WALL STREET TREASURY GENERAL COUNSEL JEAN HANSON RETAINED A FORMER LAW PARTNER HARVEY PITT OF FRIED FRANK HARRIS SHRIVER & JACOBSON FORMER WHITE HOUSE COUNSEL BERNARD NUSSBAUM IS REPRESENTED BY LAWRENCE PEDOWITZ HIS PARTNER AT WACHTELL LIPTON ROSEN & KATZ BUT THE LAWYERS ON THE WASHINGTON SCENE SEEM TO BE DOMINATING THE ACTION FOR SOME OF THEM IT SEEMS LESS A CASE OF CHALLENGING LEGAL WORK THAN A MARKETING OPPORTUNITY IT IS NOT A BIG REPRESENTATION THAT IS GOING TO TAKE A LOT OF TIME YOU WALK THEM DOWN TO THE GRAND JURY YOU SIT OUTSIDE AND PROBABLY SIX MONTHS FROM NOW YOU WALK THEM DOWN FOR A CONGRESSIONAL COMMITTEE HEARING SAYS WILLIAM G HUNDLEY A WASHINGTON LAWYER AND FORMER JUSTICE DEPARTMENT OFFICIAL IN THE KENNEDY ADMINISTRATION I WOULD THINK THAT SOME OF THE YOUNG LAWYERS WOULD REALLY WANT TO DO IT GET THEIR NAME IN THE PAPER AND GET SOME EXPOSURE CERTAINLY BECOMING PART OF THE WASHINGTON DEFENSE SCENE TAKES TIME AND ENERGY MANY DEFENSE LAWYERS ARE FORMER WASHINGTONBASED FEDERAL PROSECUTORS WHO HAVE KNOWN EACH OTHER FOR YEARS FREQUENTLY THEY REFER CASES TO ONE ANOTHER MR HUNDLEY'S FIRM AKIN GUMP STRAUSS HAUER & FELD REFERRED A WHITEWATER CLIENT TO ANOTHER FORMER JUSTICE DEPARTMENT PROSECUTOR REID WEINGARTEN A PARTNER AT STEPTOE & JOHNSON AKIN GUMP DECLINED TO GET INVOLVED BECAUSE OF THE FRIENDSHIP BETWEEN PARTNER VERNON JORDAN AND PRESIDENT CLINTON MR WEINGARTEN SAYS HE WAS APPROACHED BY TWO CLIENTS AND TOOK ON JUST ONE MR BENNETT THOUGH ALREADY FULLY BOOKED SAYS HE WAS ASKED TO MAKE A FEW RECOMMENDATIONS FOR OTHER WHITEWATER CLIENTS SEEKING COUNSEL MEANWHILE HE IS JUGGLING HIS WHITEWATER LOAD WITH TRYING TO HEAD OFF AN INDICTMENT OF ILLINOIS REP DAN ROSTENKOWSKI IN THE HOUSE POST OFFICE SCANDAL OVER THE YEARS SOME PROSECUTORS AND LAWYERS TRYING TO BREAK INTO THE CLUB HAVE BECOME CONCERNED THAT THE ATMOSPHERE IS TOO CHUMMY BESIDES REFERRING CASES TO ONE ANOTHER LAWYERS WITH DIFFERENT CLIENTS ON A PARTICULAR MATTER WILL ROUTINELY GATHER INFORMATION ABOUT A CASE FROM ONE ANOTHER SUCH EXCHANGES WHICH ARE SOMETIMES FORMALIZED THROUGH JOINT DEFENSE OR JOINT CONFIDENTIALITY AGREEMENTS HAVE BECOME ACCEPTED PRACTICE ALTHOUGH THERE IS AN UNEASINESS THAT THEY CAN LEAD TO CLIENTS SHAPING TESTIMONY MR WEINGARTEN WHO EDITS A NEWSLETTER FOR DEFENSE LAWYERS IN HIS SPARE TIME CALLED THE BEAT THE RAP SHEET INDICATES THAT SOME OF THE LAWYERS IN THE WHITEWATER AFFAIR HAVE BEEN HAVING DISCUSSIONS ABOUT THE CASE BUT HE SAYS THEY ARE ENTIRELY PROPER IT IS A HIGHLY ETHICAL GROUP AND I THINK THEY ARE TAKING APPROPRIATE MEASURES TO EDUCATE THEMSELVES ABOUT THE FACTS OF THE CASE HE SAYS ROGER ALTMAN DEPUTY TREASURY SECRETARY LAWYERS RICHARD BEATTIE AND JOHN KENNEY OF SIMPSON THACHER & BARTLETT NY BEATTIE REPRESENTED KOHLBERG KRAVIS ROBERTS IN CONNECTION WITH THE RJR NABISCO TAKEOVER KENNEY PROSECUTED ITALIAN FINANCIER MICHELE SINDONA IN CONNECTION WITH THE FRANKLIN NATIONAL BANK COLLAPSE LISA CAPUTO PRESS SECRETARY TO THE FIRST LADY LAWYER WILLIAM TAYLOR III OF ZUCKERMAN SPAEDER GOLDSTEIN TAYLOR & KOLKER DC TAYLOR REPRESENTED FORMER CALIF SEN ALAN CRANSTON IN THE KEATING FIVE SENATE ETHICS PROCEEDING BILL CLINTON & HILLARY RODHAM CLINTON LAWYER DAVID KENDALL OF WILLIAMS & CONNALLY DC KENDALL DEFENDED THE WASHINGTON POST IN A LIBEL SUIT BROUGHT BY THE PRESIDENT OF MOBIL CORP HE HAS OVERSEEN LIBEL WORK FOR THE NATIONAL ENQUIRER AND WON A SUPREME COURT CASE RULING OUT THE DEATH PENALTY IN NONMURDER CASES JACK DEVORE JR FORMER PRESS SECRETARY TREASURY DEPARTMENT LAWYERS STEVEN TABACKMAN AND ROBERT BAUER OF PERKINS COIE DC TABACKMAN REPRESENTED HEATHER FOLEY WIFE OF THE HOUSE SPEAKER IN THE HOUSE POST OFFICE INVESTIGATION BAUER IS LONGTIME GENERAL COUNSEL OF THE DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE MARK GEARAN WHITE HOUSE COMMUNICATIONS DIRECTOR LAWYER JUSTIN SIMON OF DICKSTEIN SHAPIRO & MORIN DC SIMON REPRESENTED FORMER SENATE MINORITY LEADER HUGH SCOTT IN AN INVESTIGATION BY THE WATERGATE SPECIAL PROSECUTOR JEAN HANSON GENERAL COUNSEL TREASURY DEPARTMENT LAWYERS HARVEY PITT AND AUDREY STRAUSS OF FRIED FRANK HARRIS SHRIVER & JACOBSON DC PITT DEFENDED ARBITRAGER IVAN BOESKY STRAUSS DEFENDED WALL STREET FINANCIER MARTIN SIEGEL AGAINST INSIDERTRADING CHARGES HAROLD ICKES DEPUTY WHITE HOUSE CHIEF OF STAFF LAWYER ROBERT BENNETT OF SKADDEN ARPS SLATE MEAGHER & FLOM DC BENNETT DEFENDED CLARK CLIFFORD IN CONNECTION WITH THE BCCI SCANDAL AND CINCINNATI REDS OWNER MARGE SCHOTT IN CONNECTION WITH A BASEBALL INQUIRY INTO ALLEGEDLY RACIALLY INSENSITIVE REMARKS HE CURRENTLY REPRESENTS ILL REP DAN ROSTENKOWSKI IN THE HOUSE POST OFFICE MATTER BRUCE LINDSEY SENIOR ADVISER TO THE PRESIDENT LAWYER ALLEN SNYDER OF HOGAN & HARTSON DC SNYDER REPRESENTED THE KANSAS CITY SCHOOL BOARD IN CONNECTION WITH A LANDMARK DESEGREGATION CASE AND ELIZABETH TAYLOR IN A SUIT AGAINST ABC TO PREVENT THE BROADCAST OF A DOCUDRAMA BASED ON HER LIFE THOMAS MCLARTY WHITE HOUSE CHIEF OF STAFF LAWYER WILLIAM TAYLOR SEE LISA CAPUTO ABOVE BERNARD NUSSBAUM FORMER WHITE HOUSE COUNSEL LAWYER LAWRENCE PEDOWITZ OF WACHTELL LIPTON ROSEN & KATZ NY PEDOWITZ REPRESENTED GOLDMAN SACHS & CO IN CONNECTION WITH INSIDERTRADING CHARGES AGAINST GOLDMAN TRADER ROBERT FREEMAN JOHN PODESTA WHITE HOUSE STAFF SECRETARY LAWYER ROBERT BENNETT SEE HAROLD ICKES ABOVE JOSHUA STEINER CHIEF OF STAFF TREASURY DEPARTMENT LAWYER REID WEINGARTEN OF STEPTOE & JOHNSON DC WEINGARTEN REPRESENTED COMMERCE SECRETARY RON BROWN IN CONNECTION WITH ALLEGATIONS STEMMING FROM THE VIETNAM TRADE EMBARGO GEORGE STEPHANOPOULOS SENIOR ADVISER TO THE PRESIDENT LAWYER STANLEY BRAND OF BRAND & LOWELL DC BRAND REPRESENTED WITNESSES IN A SPECIAL COUNSEL'S INVESTIGATION OF FORMER HOUSE SPEAKER JAMES WRIGHT MARGARET WILLIAMS CHIEF OF STAFF TO THE FIRST LADY LAWYER EDWARD SG DENNIS OF MORGAN LEWIS & BOCKIUS DC AND PHILADELPHIA DENNIS PARTICIPATED IN JUSTICE DEPARTMENT INTERNAL REVIEW OF THE BRANCH DAVIDIAN FIASCO AND CORRUPTION PROBE OF THE PENNSYLVANIA SUPREME COURT LAW NOTE WILLIAM K SLATE II BECAME PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING ROBERT COULSON WHO IS RETIRING AFTER 20 YEARS IN THE POSITION MR SLATE WAS FORMERLY PRESIDENT OF THE JUSTICE RESEARCH INSTITUTE A RESEARCH AND CONSULTING FIRM FOR COURTS THE NONPROFIT AAA HAD PREVIOUSLY HIRED FORMER TRANS WORLD AIRLINES GENERAL COUNSEL MARK BUCKSTEIN FOR THE POSITION BUT HE RESIGNED LAST YEAR AFTER NINE MONTHS ON THE JOB CITING PHILOSOPHICAL DIFFERENCES WITH THE ORGANIZATION 9404060037 940406 MARKETING BRIEF KNIGHTRIDDER INC DIALOG UNIT MAY ANNOUNCE PRODUCT TO LICENSE COPIES KNIGHTRIDDER INC'S DIALOG INFORMATION SERVICES INC AN ONLINE DATABASE IS EXPECTED TO ANNOUNCE TODAY A NEW PRODUCT AIMED AT LETTING ITS SUBSCRIBERS AVOID COPYRIGHT DISPUTES AS MORE COMPANIES GET THEIR STAFFS ONLINE TO DRAW FROM THE THOUSANDS OF PUBLICATIONS AVAILABLE ON DATABASES SOME HAVE GOTTEN INTO TROUBLE BY DISTRIBUTING ELECTRONIC ARTICLES TO COLLEAGUES OVER A NETWORK TO AVOID LEGAL WRANGLING DIALOG WILL GIVE SUBSCRIBERS AN OPTION OF PURCHASING A LICENSE WHILE THEY ARE LOGGED ON TO THE SERVICE FOR MATERIAL INTENDED FOR WIDER DISTRIBUTION BASIC SUBSCRIPTION FEES PAY FOR A SINGLE USE OF MATERIAL DIALOG'S 155000 SUBSCRIBERS CAN ACCESS MORE THAN 3000 PUBLICATIONS TO LICENSE COPIES OF AN ARTICLE COSTING ONE DOLLAR USERS WILL PAY AN ADDITIONAL THREE DOLLARS FOR UP TO 15 COPIES AND 12 FOR UP TO A THOUSAND COPIES 9404060036 940406 TRADING BY FIRST LADY ENDED AFTER MARGIN CALL CHARLOTTE NC PRESIDENT CLINTON DISCLOSED THAT HIS WIFE GOT A MARGIN CALL ON HER COMMODITY INVESTMENTS DURING THE LATE 1970S AND THEN CHOSE TO GET OUT OF THAT KIND OF INVESTMENT DURING A TELEVISED TOWN HALL MEETING HERE MR CLINTON DEFENDED HIS FAMILY'S INVESTMENTS WHILE HE WAS IN ARKANSAS AND SAID HE WAS DESERVING OF PEOPLE'S TRUST IN PARTICULAR HE SAID HIS WIFE HILLARY RODHAM CLINTON WAS AT RISK WHEN SHE TRADED COMMODITY CONTRACTS AND EVEN WAS SUBJECT TO PAYING ADDITIONAL MONEY TO COVER HER INVESTMENTS BOUGHT ON MARGIN WHICH IS THE INVESTOR'S INITIAL DEPOSIT ON A FUTURES CONTRACT THE PRESIDENT SAID MRS CLINTON RECEIVED A MARGIN CALL GOT COLD FEET AND THEN AROUND THE TIME OF THE BIRTH OF THEIR DAUGHTER IN EARLY 1980 GOT OUT OF THE COMMODITY MARKET HE DIDN'T SPECIFY THE SIZE OF THE MARGIN CALL WHEN THE WHITE HOUSE RELEASED MRS CLINTON'S TRADING RECORDS LAST WEEK OFFICIALS SAID THAT WHEN SHE BECAME PREGNANT SHE STOPPED TRADING BECAUSE IT WAS TOO NERVEWRACKING THE PRESIDENT'S STATEMENT WAS THE FIRST TIME HE PUBLICLY STATED THAT HIS WIFE RECEIVED A MARGIN CALL ON HER INVESTMENTS WHICH OVERALL NETTED HER ALMOST 100000 IN PROFIT 9404060035 940406 MANAGING YOUR CAREER BY JOANN S LUBLIN NOBODY LIKES TO LOSE TURF YET MANY PEOPLE DO NOWADAYS AS THE MANIA FOR DOWNSIZING AND MERGERS PERSISTS THEY DESPAIR OVER LOSS OF BUDGET DOLLARS STAFF CUSTOMERS OR DESIRABLE OFFICE SPACE BUT THEY CAN LIMIT THE DAMAGE BY CHARTING A CAREFUL COURSE OF RECOVERY CAREER ADVISERS SAY SOME FIGHT IRRATIONALLY TO KEEP THEIR EMPIRES INTACT WITH LITTLE SUCCESS IT'S EASY TO OVERREACT SAYS MARGARET NEWBORG AN EXECUTIVE VICE PRESIDENT OF THE AYERS GROUP A NEW YORK OUTPLACEMENT FIRM WE HAVE A LOT OF PEOPLE HERE WHO ARE VICTIMS OF THAT OTHERS SURRENDER GROUND AFTER A MERGER THE 250000AYEAR HEAD OF A CHEMICAL COMPANY UNIT AGREED TO A TRANSFER EVEN THOUGH HIS DUTIES SHRANK HE WENT FROM SUPERVISING 225 WORKERS IN WESTPORT CONN TO DIRECTING 15 IN MINNEAPOLIS I LOST A FAIR AMOUNT OF MY TURF THERE I ACCEPTED IT BECAUSE THEY DIDN'T CUT MY SALARY AND I HAD TWO KIDS IN COLLEGE THE 52YEAROLD EXECUTIVE RECALLS HE SAYS HE ALSO NAIVELY BELIEVED THAT HE COULD REGAIN SOME POWER INSTEAD TWO YEARS LATER HE LOST HIS JOB THERE ARE WAYS YOU CAN PROFIT FROM A TURF LOSS HOWEVER TO BEGIN WITH CAREER COUNSELORS SUGGEST FIGURE OUT WHY YOU LOST THE TERRITORY EVERYONE IS GOING TO LOSE A TURF BATTLE ONCE IN A WHILE OBSERVES DEE SODER AN EXECUTIVE COACH IN NEW YORK THE STUPID PEOPLE ARE THE ONES WHO DON'T LEARN FROM IT A RECENT REORGANIZATION LEFT A SENIOR EXECUTIVE OF A MAJOR BANK WITH HALF HIS FORMER RESPONSIBILITIES HE GRADUALLY UNDERSTOOD THE CAUSES OF THE SETBACK BY TALKING TO HIS SUPERVISOR COLLEAGUES AND THE HEAD OF PERSONNEL HE REALIZES HE MUST BETTER EXPLAIN HIS BUSINESS GAME PLAN TO HIS BOSS IN ADDITION THE BANKER IS WORKING HARD TO EXCEL AT HIS REMAINING TURF ANOTHER WISE STRATEGY THAT'S HOW A SENIOR MARKETING EXECUTIVE WHO LOST TURF AT A BIG FINANCIALSERVICES CONCERN IN NEW YORK WON THE WAR WHEN SHE RETURNED FROM A FOURMONTH MATERNITY LEAVE THIS MANAGER DISCOVERED THAT A TRUSTED ASSISTANT HAD FASHIONED A NEW UNIT FOR HIMSELF BY TAKING OVER A THIRD OF HER STAFF AND HER BUDGET I WAS LIVID SHE RECOLLECTS RATHER THAN TRYING TO GET REVENGE THE 41YEAROLD EXECUTIVE SAYS I ABSOLUTELY DEVOTED MYSELF TO WHAT WAS LEFT SHE TRANSFORMED HER DEPARTMENT INTO THE COMPANY'S FASTESTGROWING BUSINESS UNIT HER FORMER SUBORDINATE WAS DISMISSED BECAUSE HE DIDN'T BUILD UP HIS UNIT QUICKLY IRONICALLY SHE NOTES THE MAN'S FIRING COINCIDED WITH HER PROMOTION TO A JOB IN WHICH SHE REPORTED DIRECTLY TO THE CHAIRMAN I WAS GIVEN BACK THE DISMISSED MAN'S UNIT SHE BOASTS IT WAS A DELICIOUS VICTORY ABSOLUTELY DELICIOUS YOU ALSO MAY BE ABLE TO REGAIN GROUND BY DEVISING A SOLUTION THAT CLEARLY BENEFITS YOUR EMPLOYER AS PART OF A STREAMLINING EFFORT ONE WEST COAST RETAILER DECIDED TO REDUCE A DISTRICT MANAGER'S DOMAIN FROM SEVERAL STORES TO ONLY ONE OFFICE RIVALS FIGURED SHE WOULD QUIT RATHER THAN ACCEPT THE DIMINISHED STATUS INSTEAD THE WOMAN MARCHED INTO THE PRESIDENT'S OFFICE WITH AN ALTERNATIVE PROPOSAL SHE GUARANTEED THAT HER LOSSRIDDEN STORES WOULD GENERATE 35 MORE REVENUE WITHIN SIX MONTHS IF SENIOR MANAGEMENT SPED UP PRODUCT DELIVERIES SHE CAME IN WITH FACTS AND FIGURES THAT COULDN'T BE DISPUTED SAYS PELLER MARION A SAN FRANCISCO OUTPLACEMENT COUNSELOR AND AUTHOR OF A BOOK ABOUT CAREER CRISES BY FULFILLING HER PROMISE SHE GOT HER TURF BACK DR MARION ADDS THE DISTRICT MANAGER ALSO EXPLOITED HER STRONG WORKING RELATIONSHIP WITH THE RETAILER'S PRESIDENT SHE REMINDED HIM WE GO BACK A LONG WAY JOHN HOW WOULD YOUR CONSCIENCE FEEL IF YOU SAW ME AS A MANAGER OF JUST ONE STORE POWERFUL ALLIES CAN MAKE A DIFFERENCE IN WHETHER YOU REBOUND FROM A TURF LOSS THE ARROGANT YOUNG STAR OF A WEST COAST LAW FIRM CLASHED WITH A MANAGING PARTNER BY ACTING SMARTER THAN THE OLDER COLLEAGUE SO THE MANAGING PARTNER GRABBED SOME TURF HE MADE SURE THE UPSTART STOPPED GETTING THE BEST CASES AND THE BEST SUPPORT STAFF THE SANDBAGGED STAR LACKED ALLIES WITHIN THE FIRM BECAUSE HE HAD BELIEVED HE COULD SUCCEED BY MERELY DOING A GOOD JOB HE DIDN'T HAVE TIME TO BUILD SUCH ALLIANCES SAYS LEONARD FELDER A LOS ANGELES PSYCHOLOGIST AND AUTHOR OF A BOOK ABOUT BEING TREATED BADLY AT WORK YET THESE RELATIONSHIPS HAVE A LOT TO DO WITH WORK DR FELDER URGED THE 34YEAROLD LAWYER TO FIND ALLIES OUTSIDE HIS FIRM BY BECOMING INVOLVED WITH PLANNING A CHARITABLE FUNDRAISER FOR A PROFESSIONAL ASSOCIATION HE MADE VERY CLOSE WORKING RELATIONSHIPS WITH PEOPLE ON THE COMMITTEE THE PSYCHOLOGIST REMEMBERS THROUGH THOSE CONTACTS THE ATTORNEY SOON FOUND A JOB AT ANOTHER LAW FIRM WHERE HE BECAME A PARTNER A YEAR LATER A FEW CORPORATIONS SUCH AS GENERAL ELECTRIC ARE TRYING TO END TURF BATTLES AND SPEED NEWPRODUCT DEVELOPMENT BY CREATING BOUNDARYLESS TEAMS IN THIS YEAR'S LETTER TO SHAREHOLDERS CHAIRMAN JOHN F WELCH SAYS THAT ONE OF THE QUICKEST WAYS TO PART COMPANY WITH GE IS TO BE A CONTROLLING TURFDEFENDING OPPRESSIVE MANAGER WHO CAN'T CHANGE DOES THAT MEAN GE EMPLOYEES NO LONGER WORRY ABOUT LOSING TURF WE AREN'T SAYING THE ISSUE IS GONE A SPOKESMAN SAYS WE ARE SAYING IT'S NOT GOOD AND WE DON'T LIKE IT DR FELDER ISN'T SURPRISED AS LONG AS HUMAN BEINGS WORK IN FAMILYLIKE GROUPS HE OBSERVES THERE ARE GOING TO BE TURF BATTLES 9404060034 940406 INTERNATIONAL BRIEF SKANSKA AB HOSPITAL DEAL IN MALAYSIA IS VALUED AT 253 MILLION SWEDEN'S SKANSKA AB THE LARGEST CONSTRUCTION GROUP IN THE NORDIC REGION SAID YESTERDAY IT RECEIVED AN ORDER FROM MALAYSIA'S MINISTRY OF HEALTH VALUED AT 200 MILLION KRONOR 253 MILLION TO BUILD A HOSPITAL ON THE ISLAND OF LANGKAWI THE HOSPITAL WILL BE BUILT ON A TURNKEY BASIS AND IS EXPECTED TO BE COMPLETED IN NOVEMBER 1995 SAID SKANSKA BASED IN STOCKHOLM THE PROJECT ALSO INVOLVES THE TRANSFER OF KNOWHOW ON BOTH HOSPITAL CONSTRUCTION AND OPERATION THE GROUP SAID SKANSKA AND ITS SWEDISH PARTNER SCAAN CONSULTANTS WILL MAINTAIN THE HOSPITAL FOR TWO YEARS AFTER ITS COMPLETION IT SAID SKANSKA SAID IT HAS ALSO REACHED AGREEMENT WITH A MALAYSIAN LISTED COMPANY EKRAN ON TECHNOLOGY TRANSFER WITHIN THE HYDROELECTRIC SECTOR TO BETTER FOLLOW DEVELOPMENTS IN MALAYSIA AND NEIGHBORING AREAS OF SOUTHEAST ASIA SKANSKA HAS FORMED A SUBSIDIARY UNIT BASED IN KUALA LUMPUR 9404060033 940406 BUSINESS BRIEF AMES DEPARTMENT STORES INC NET TOTALING 404 MILLION POSTED FOR FISCAL 4TH PERIOD AMES DEPARTMENT STORES INC WHICH EMERGED FROM BANKRUPTCYCOURT PROTECTION IN DECEMBER 1992 REPORTED NET INCOME OF 404 MILLION OR 191 A SHARE FOR THE FOURTH QUARTER ENDED JAN 29 THE ROCKY HILL CONN COMPANY WHICH OPERATES 307 STORES IN 14 NORTHEASTERN STATES ALSO POSTED A FISCALYEAR NET INCOME OF 108 MILLION OR 51 CENTS A SHARE ON SALES OF 212 BILLION ITS FIRST ANNUAL PROFIT IN FIVE YEARS AMES STOCK JUMPED 875 CENTS OR 175 TO CLOSE AT 5875 A SHARE IN NASDAQ STOCK MARKET TRADING YESTERDAY PETER THORNER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE TURNAROUND WAS THE RESULT OF SELLING MORE HIGHERMARGIN PRODUCTS SUCH AS FURNITURE CRAFTS AUTO PRODUCTS AND TOYS AND CONTROLLING INVENTORY AND EXPENSES MR THORNER SAID HE EXPECTS PROFIT TO INCREASE IN 1994 BUT HE ALSO SAID SEASONAL SALES SWINGS INCREASED COMPETITION AND A SLUGGISH ECONOMY WILL CONTINUE TO PRESENT CHALLENGES 9404060032 940406 BUSINESS BRIEF EMERSON RADIO CORP ELECTRONICS CONCERN EMERGES FROM CHAPTER 11 PROTECTION EMERSON RADIO CORP THE CONSUMER ELECTRONICS MAKER SAID IT EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS THE COMPANY WHICH FILED FOR BANKRUPTCYLAW PROTECTION FROM CREDITORS LAST SEPTEMBER SAID IT PLANS TO GIVE EXISTING SHAREHOLDERS THE CHANCE TO PURCHASE AS MUCH AS 30 OF THE NEW COMPANY IN AN OFFERING AT 1 A SHARE FIDENAS INTERNATIONAL LTD A BAHAMASBASED INVESTMENT GROUP THAT HAD OWNED 20 OF EMERSON'S EQUITY CONTRIBUTED 75 MILLION AND WILL HOLD A 60 STAKE IN THE NEW COMPANY WHILE CREDITORS WILL HOLD A 10 STAKE IN THE FISCAL YEAR ENDED MARCH 31 EMERSON'S SALES WERE ABOUT 520 MILLION A SPOKESMAN SAID IN PARSIPPANY NJ HE SAID THE COMPANY WHICH PREVIOUSLY WAS LISTED ON THE NEW YORK STOCK EXCHANGE INTENDS TO SEEK A LISTING ON A MAJOR NATIONAL EXCHANGE 9404060031 940406 MANAGEMENT AT THE NATION'S MIDTIER BUSINESS SCHOOLS TOUGHEST COURSE IS ATTRACTING APPLICANTS BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL SUFFERING FROM OVERCAPACITY SHRINKING JOB MARKETS AND THE NEED TO BUY COSTLY NEW TECHNOLOGY MIDTIER MBA PROGRAMS ARE DEVISING NEW WAYS TO ATTRACT A DWINDLING POOL OF STUDENTS THE HARVARDS AND THE STANFORDS DON'T HAVE TO SLUG IT OUT FOR CUSTOMERS THE WAY WE DO SAYS JERRY VISCIONE DEAN OF SEATTLE UNIVERSITY'S ALBERS SCHOOL OF BUSINESS MIDTIER SCHOOLS LIKE SEATTLE WHERE AN MBA COSTS SOME 25000 COMPARED WITH MORE THAN THREE TIMES THAT AMOUNT AT HARVARD HAVE LONG BEEN ACADEMIC INCUBATORS FOR MIDDLE MANAGERS WHO EARN GRADUATE BUSINESS DEGREES AT NIGHT OR ON WEEKENDS MOST OF THESE SCHOOLS RELY HEAVILY ON EMPLOYERS USUALLY LARGER COMPANIES TO PICK UP AT LEAST PART OF STUDENTS' TUITION BILLS BUT THAT IS CHANGING NOT ONLY HAVE EMPLOYERS BECOME MORE TIGHTFISTED BUT THE NUMBER OF MBA PROSPECTS TAKING THE GRADUATE MANAGEMENT ADMISSIONS TEST HAS DROPPED 17 SINCE 1991 THOSE WHO DO SEEK A MASTER'S DEGREE IN BUSINESS ADMINISTRATION CAN CHOOSE FROM A CROWDED FIELD GRADUATE BUSINESS PROGRAMS IN THE US HAVE PROLIFERATED TO MORE THAN 700 FROM 389 TWO DECADES AGO THIS IS AN INDUSTRY CLEARLY OVER CAPACITY SAYS CHARLES HICKMAN DIRECTOR OF PROJECTS AND SERVICES FOR THE AMERICAN ASSEMBLY OF COLLEGIATE SCHOOLS OF BUSINESS WHICH ACCREDITS 273 MBA PROGRAMS BUSINESS SCHOOLS IN GENERAL ARE GETTING SQUEEZED THESE DAYS AND THESE MIDLEVEL SCHOOLS ARE FEELING IT MOST AS COMPETITION FOR STUDENTS HEATS UP MR HICKMAN AND OTHERS SAY TOPRANKED SCHOOLS ARE POACHING ON THEIR LESSERKNOWN COUNTERPARTS IF YOU VIEW THIS AS A FEEDING CHAIN HARVARD WILL STILL FILL ITS CLASSES BUT THEY MAY REACH DOWN TO FEED OFF PEOPLE THEY MIGHT NOT HAVE CONSIDERED FIVE YEARS AGO MR HICKMAN SAYS COMPOUNDING THE PROBLEM ARE CONTINUING CUTBACKS IN TRADITIONAL MARKETS FOR MBAS BIG COMPANIES ARE STILL CUTTING JOBS AND MIDDLE MANAGEMENT IS THE WHITECOLLAR AREA THAT IS SHRINKING THE FASTEST AT THOSE COMPANIES SAYS JOHN CHALLENGER EXECUTIVE VICE PRESIDENT OF CHALLENGER GRAY & CHRISTMAS A CHICAGOBASED PLACEMENT FIRM BESIDES COSTING MIDTIER BSCHOOLS A MARKET FOR GRADUATES CORPORATE BELTTIGHTENING ALSO MEANS LESS TUITION SUPPORT FOR EMPLOYEES CORPORATE TUITION SUPPORT FOR FIRSTYEAR MBA STUDENTS FELL 18 BETWEEN 1985 AND 1992 ACCORDING TO THE GRADUATE MANAGEMENT ADMISSION COUNCIL AT LOYOLA OF CHICAGO EMPLOYER SUPPORT IS DOWN TO HALF THE STUDENTS FROM THREEQUARTERS A DECADE AGO THE CURRICULA OF THE MIDTIER AND THE TOPLEVEL SCHOOLS AREN'T NOTABLY DIFFERENT BUT THE BEST SCHOOLS TEND TO ATTRACT THE BEST TEACHERS AND GENERALLY OFFER ACCESS TO SUPERIOR LIBRARIES AND RESEARCH FACILITIES PERHAPS THE MOST DIFFICULT OBSTACLE FACING THE MIDTIER SCHOOLS HOWEVER IS THE GROWING TECHNOLOGY GAP BETWEEN THEM AND THE TOPFLIGHT INSTITUTIONS MIDTIER PROGRAMS AREN'T KEEPING UP WITH TOP SCHOOLS IN SPENDING OR STAFFING OF COMPUTER PROGRAMS SAYS JASON FRAND DIRECTOR OF COMPUTERINFORMATION SERVICES AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES'S GRADUATE BUSINESS SCHOOL WHICH TRACKS TECHNOLOGY SPENDING AT 132 ACCREDITED MBA PROGRAMS DR FRAND SAYS STANFORD UNIVERSITY SPENDS NEARLY 1849 A YEAR ON COMPUTERS AND COMPUTERSUPPORT PROGRAMS FOR EACH MBA CANDIDATE WHILE THE AVERAGE MBA PROGRAM BUDGETS 70 PER STUDENT FOR COMPUTER SUPPORT SCHOOLS IN THE TOP QUARTER OF DR FRAND'S STUDY MOSTLY BETTERENDOWED PRIVATE INSTITUTIONS ASSIGN A FULLTIME STAFFER TO PROVIDE COMPUTER SUPPORT FOR EVERY 75 STUDENTS MIDWAY DOWN THE LIST THE RATIO JUMPS TO 354TO1 WE'RE DEVELOPING A HAVE AND HAVENOT GROUP OF STUDENTS IN OUR BUSINESS SCHOOLS DR FRAND SAYS AT SEATTLE UNIVERSITY'S ALBERS BUSINESS SCHOOL WHICH HAS 850 STUDENTS MR VISCIONE IS ACUTELY AWARE OF THE TECHNOLOGY GAP HIS SCHOOL IS BUILDING A 15 MILLION CLASSROOM FACILITY THAT WILL BE WIRED FOR STATEOFTHEART TECHNOLOGY BUT HE SAYS HE CAN'T AFFORD THE HARDWARE AND SOFTWARE HIS STAFF AND STUDENTS NEED MY FACULTY KEEP COMING IN AND SAYING I CAN'T DO MY JOB UNLESS YOU GET ME THIS OR THAT SOFTWARE' HE SAYS BUT HOW CAN I JUSTIFY SPENDING 20000 ON ONE SPECIAL DATABASE MOREOVER JUST ANY OLD EQUIPMENT WON'T DO WHEN A LOCAL COMPANY RECENTLY OFFERED TO DONATE USED COMPUTERS WITH 286 CHIPS TO HIS MBA PROGRAM HE TURNED THEM DOWN OUTMODED COMPUTERS SEND NEGATIVE SIGNALS TO PROSPECTIVE STUDENTS HE SAYS RANDOLPH NEW DEAN OF THE BUSINESS SCHOOL AT LOYOLA UNIVERSITY IN NEW ORLEANS AND HEAD OF THE ASSOCIATION OF JESUIT COLLEGES AND UNIVERSITIES SAYS THE ANSWER FOR SOME BUSINESS SCHOOLS MAY BE IN NICHES FORDHAM UNIVERSITY FOR EXAMPLE OFFERS AN MBA IN THE TEACHINGS OF TOTAL QUALITY MANAGEMENT GURU W EDWARDS DEMING AT LOYOLA IN NEW ORLEANS MR NEW PLANS TO OFFER A SIMILAR PROGRAM MR NEW SAYS LOYOLA OFFICIALS SPENT TWO YEARS DECIDING WHETHER MR DEMING'S PROGRAM MIGHT BE JUST ANOTHER BUSINESS FAD IT'S A RISK HE CONCEDES BUT YOU'VE GOT TO DO SOMETHING OR YOU DIE LOYOLA OF CHICAGO'S BUSINESS SCHOOL WILL FOCUS ON ITS CENTER FOR FAMILY BUSINESS WHICH HAS A NEW 40 MILLION BUILDING OPENING THIS SUMMER THE COMPANIES THAT ARE HIRING ARE SMALLER THESE DAYS SAYS RONALD MEYER LOYOLA'S DEAN WE WANTED THEM TO THINK OF US THE UNIVERSITY OF DENVER'S BUSINESS SCHOOL WHICH RECEIVED AN 11 MILLION PLEDGE FROM CABLETELEVISION ENTREPRENEUR WILLIAM DANIELS RECENTLY CHOSE WOMEN AS ITS NICHE MORE PICTURES OF WOMEN WERE PUT IN RECRUITING BROCHURES AND THE PRACTICE OF REFERRING TO MBA CANDIDATES AS HE IN PRINTED MATERIALS WAS STOPPED SAYS BARBARA DARLING WHO WAS HIRED TO HELP REFOCUS THE SCHOOL'S PROMOTIONAL PROGRAM AND PUBLIC RELATIONS COURSES IN MANAGEMENT BEHAVIOR WERE ADDED TO THE MBA CURRICULUM AND ETIQUETTE EXPERT LETITIA BALDRIDGE WAS HIRED TO OFFER TIPS ON EXECUTIVE MANNERS AND DRESS THE RESULT THE PERCENTAGE OF WOMEN AMONG THE UNIVERSITY OF DENVER'S 600 MBA CANDIDATES ROSE BY A THIRD IN THE LAST TWO YEARS AND THE SCHOOL IS HOLDING ITS OWN IN ATTRACTING APPLICANTS MR VISCIONE SAYS SEATTLE UNIVERSITY PLANS TO KEEP PITCHING ITS MBA PROGRAM TO THE TRADITIONAL MIDTIER AUDIENCE OF WORKING PROFESSIONALS BUT NOW HE SAYS WE'RE NOT WAITING FOR THE CUSTOMERS TO COME TO US WE'RE TAKING THE SCHOOL TO THEM THE SCHOOL DISPATCHES FACULTY TO TEACH EVENING AND BREAKFAST MBA COURSES IN RENTED OFFICE SPACE NEAR SEATTLE'S TWO BIGGEST EMPLOYERS MICROSOFT CORP AND BOEING CO MR VISCIONE ALSO SENT FIVE OF HIS FACULTY TO MEXICO DURING SPRING BREAK LAST MONTH TO SET UP INTERNSHIPS FOR THE SCHOOL'S BEEFEDUP INTERNATIONALBUSINESS PROGRAM SEATTLE UNIVERSITY HAS ALSO STARTED MULLING DISTANCE LEARNING USING INTERACTIVE CABLE TELEVISION AND COMPUTERS TO BYPASS CLASSROOMS AND TAKE COURSES DIRECTLY TO STUDENTS' HOMES SUCH HIGHTECH TEACHING MR VISCIONE SAYS WILL ALLOW MIDTIER SCHOOLS LIKE HIS TO BUNDLE THEIR ASSETS AND HIRE BIGNAME TEACHERS THERE HAVE BEEN SOME CHANGES AND A NUMBER OF MBA PROGRAMS ARE GOING TO GO OUT OF BUSINESS IN THE NEXT FEW YEARS HE SAYS BUT WE'RE GOING TO STAY THE COURSE 9404060030 940406 BUSINESS BRIEF HALLIBURTON CO UNIT OF BROKEN HILL AWARDS 90 MILLION VESSEL CONTRACT A UNIT OF HALLIBURTON CO SAID HAMILTON OIL CO AWARDED IT A 90 MILLION 15YEAR CONTRACT TO DESIGN BUILD AND OPERATE A VESSEL FOR A PROJECT IN THE IRISH SEA HALLIBURTON ENERGY SERVICES SAID THE OPERATIONSSUPPORT VESSEL IS BEING BUILT FOR HAMILTON OIL'S LIVERPOOL BAY OIL AND GAS DEVELOPMENT PROJECT HAMILTON OIL CO IS A BRITISH SUBSIDIARY OF BROKEN HILL PROPRIETARY CO OF MELBOURNE AUSTRALIA THE HOUSTON OILWELLSERVICES COMPANY SAID SUCH VESSELS HAVE BEEN USED SUCCESSFULLY IN OTHER PARTS OF THE WORLD BUT NOT YET IN UNITED KINGDOM OFFSHORE OPERATIONS THE VESSEL ONE OF THE LARGEST OF ITS KIND WILL ACCOMMODATE UP TO 42 PEOPLE AND HAVE THREE ONBOARD CRANES 9404060029 940406 TEXAS JOURNAL GONZALEZ VS HAAS A HIGHCOURT BATTLE RACE FOR JUDGE'S SEAT IS SEEN AS CRUCIAL AND THE MUD IS FLYING BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL CROCKETT TEXAS SUPREME COURT JUSTICE RAUL GONZALEZ IS SCRAMBLING NEAR THE END OF A LONG DAY OF BARNSTORMING THROUGH EAST TEXAS THE CANDIDATE ARRIVES 30 MINUTES LATE AT THE HOUSTON COUNTY COURTHOUSE TO FIND THE BUILDING NEARLY EMPTY TO SALVAGE SOMETHING FROM THE STOP HE DASHES ACROSS THE TOWN SQUARE TO A LOCAL RADIO STATION AND TAPES A BRIEF INTERVIEW TOUCHING ON THE MAIN THEME OF HIS CAMPAIGN THIS ELECTION IS CRUCIAL MR GONZALEZ SAYS THE TRIAL LAWYERS WANT TO BUY A SEAT FOR RENE HAAS AFTER NINE YEARS ON THE STATE'S HIGH COURT MR GONZALEZ IS FACING THE TOUGHEST CHALLENGE OF HIS POLITICAL CAREER HE HAS THE STRONG BACKING OF BUSINESS AND THE ENDORSEMENTS OF THE STATE'S IMPORTANT NEWSPAPERS BUT MS HAAS HIS OPPONENT IN TUESDAY'S DEMOCRATIC PARTY RUNOFF HAS A FAT WAR CHEST FILLED LARGELY WITH CONTRIBUTIONS FROM THE STATE'S PLAINTIFFS LAWYERS MOREOVER SHE HAS WON THE SUPPORT OF ORGANIZED LABOR AND MANY BLACK AND HISPANIC GROUPS INCLUDING SOME THAT ENDORSED MR GONZALEZ SIX YEARS AGO BUT HAVE BEEN ANGERED BY RECENT DECISIONS FROM THE COURT SHE ALSO HAS SOLID BACKING FROM WOMEN'S GROUPS AS A RESULT STATE BUSINESS GROUPS ARE WATCHING THE RACE WITH A GROWING SENSE OF ALARM A LOSS BY MR GONZALEZ IN THE RUNOFF COMBINED WITH STRONG CHALLENGES FOR TWO OTHER SEATS ON THE COURT IN NOVEMBER COULD THREATEN THE COURT'S FREQUENT 63 PROBUSINESS MAJORITY A CODE OF JUDICIAL CONDUCT PREVENTS THE CANDIDATES FROM SAYING MUCH ABOUT SPECIFIC LEGAL QUESTIONS BUT BY ALL INDICATIONS THEY COME FROM OPPOSITE POLES MR GONZALEZ FIRST APPOINTED TO THE SUPREME COURT IN 1984 IS A JUDICIAL CONSERVATIVE WHO HAS VOTED TO REIN IN PUNITIVEDAMAGE AWARDS AND OVERTURN LOWERCOURT RULINGS THAT FAVORED PLAINTIFFS MS HAAS A FORMER COUNTY PROSECUTOR AND STATE DISTRICT JUDGE IS EXPECTED TO UPHOLD PROPLAINTIFF RULINGS AND SHE HAS REPEATEDLY CRITICIZED COURT DECISIONS SHE SAYS PROTECTS WRONGDOERS AT THE EXPENSE OF THE INNOCENT THAT THE CANDIDATES CAN'T GET TOO SPECIFIC MAKES THEM MORE LIKELY TO SLING MUD AND THAT'S PRECISELY WHAT THEY HAVE BEEN DOING IN FEBRUARY THE HAAS CAMPAIGN MAILED 580000 WOMEN VOTERS AN EYECATCHING BROCHURE HEADLINED RAUL GONZALEZ PROTECTED THEIR ABUSERS WHICH CRITICIZED SUPREME COURT RULINGS OVERTURNING DAMAGE AWARDS TO TWO WOMEN THE GONZALEZ CAMPAIGN HAS RUN A STEADY STREAM OF NEGATIVE TV ADS CRITICIZING AMBULANCECHASING LAWYERS AND ACCUSING MS HAAS OF DECEPTION IN HER CAMPAIGN CONCLUDING ONLY YOU CAN STOP THE FRAUD IN RECENT WEEKS MORE DIRT HAS BEEN FLYING FROM THE GONZALEZ CAMP ITS LATEST TV AD FEATURES AN AUSTIN ACTRESS SAYING SHE FEELS VIOLATED AND ABUSED BECAUSE HER PICTURE WAS USED WITHOUT HER PERMISSION IN A HAAS CAMPAIGN BROCHURE MR GONZALEZ'S REELECTION COMMITTEE ALSO IS MAILING A FOURPAGE FLIER HEADLINED SHAME ON YOU RENE HAAS ARGUING THAT THE CHALLENGER IS ON THIN ICE WITH A VICIOUS SMEAR CAMPAIGN THAT MAKES HER THE TONYA HARDING OF TEXAS POLITICS HANDS DOWN IT'S THE WORST EVER IN A SUPREME COURT RACE SAYS BILL MILLER AN AUSTIN POLITICAL CONSULTANT THE RACE IS FULL OF IRONIES MR GONZALEZ GREW UP IN RURAL POVERTY IN THE RIO GRANDE VALLEY BUT IT IS MS HAAS FROM A WEALTHY CORPUS CHRISTI OIL FAMILY WHO HAS WON THE ENDORSEMENTS OF THE UNITED FARMWORKERS OF TEXAS THE AFLCIO'S POLITICAL ACTION COMMITTEE AND OTHER GRASSROOTS ORGANIZATIONS THE INCUMBENT IS BACKED BY LARGE CORPORATIONS AND BIG CORPORATE LAW FIRMS BUT SO FAR HE TRAILS MS HAAS IN FUND RAISING 23 MILLION TO 16 MILLION AS IN PREVIOUS SUPREME COURT RACES BOTH CAMPS ARE RELYING HEAVILY ON THOSE WITH STAKES IN COURT DECISIONS A LARGE PART OF MR GONZALEZ'S FUNDS COMES FROM THE INSURANCE INDUSTRY WHICH HAS BENEFITED FROM A COURT MAJORITY WILLING TO LIMIT DAMAGE AWARDS AND ELIMINATE GROUNDS FOR INJURY LAWSUITS BUSINESS AND PROFESSIONAL GROUPS ALSO HAVE BEEN GENEROUS THE TEXAS CHAMBER OF COMMERCE'S PAC HAS GIVEN 25000 ITS MOST EVER IN A SINGLE RACE BUSINESS GROUPS ARE HELPING MR GONZALEZ IN OTHER WAYS THE TWINENGINE PLANE USED ON THE EAST TEXAS TOUR IS OWNED BY A CORPUS CHRISTI CONSTRUCTION FIRM THE CAMPAIGN PAYS ONLY FUEL AND PILOT EXPENSES THE STATE AUTO DEALERS ARE MAILING WALLETSIZED CARDS URGING MEMBERS TO VOTE FOR MR GONZALEZ WHILE A GROUP OF INDEPENDENT INSURANCE AGENTS ARE CALLING SUPPORTERS AND PUTTING UP CAMPAIGN SIGNS ON THE OTHER SIDE PLAINTIFFS LAWYERS WHOSE INCOMES DEPEND ON THEIR ABILITY TO WIN DAMAGE AWARDS FOR THEIR CLIENTS HAVE HELPED BANKROLL MS HAAS'S CAMPAIGN SHE HAS RAISED LARGE SUMS 600000 AS OF JAN 27 FROM ABOUT TWO DOZEN PLAINTIFFS LAW FIRMS INCLUDING THE INFLUENTIAL PROVOST & UMPHREY FIRM IN BEAUMONT AND AUSTIN'S LONGLEY & MAXWELL THE VICIOUS TONE OF THE RACE AND THE PERCEPTION THAT JUSTICE IS STILL FOR SALE IN TEXAS HAVE RENEWED QUESTIONING OF WHETHER PARTISAN ELECTIONS ARE THE BEST WAY TO CHOOSE JUDGES IN THE STATE THIS RACE SPEAKS LOUDLY FOR THE PROPOSITION THAT WE NEED A BETTER WAY OF SELECTING APPELLATE JUDGES SAYS KENZY HALLMARK A LUFKIN ATTORNEY WHOSE FIRM ORGANIZED A RECENT FUNDRAISER FOR MR GONZALEZ EVEN MR GONZALEZ IS UNCOMFORTABLE WITH THE PROCESS IT PUTS JUDGES IN THE AWKWARD SITUATION OF HAVING TO RAISE LARGE SUMS OF MONEY FROM SPECIAL INTERESTS HE SAYS DURING A LULL IN THE EAST TEXAS CAMPAIGN SWING THERE'S NO WAY TO AVOID THE APPEARANCE OF IMPROPRIETY MS HAAS SUPPORTS CAMPAIGNFINANCE REFORM BUT ALSO FAVORS THE ELECTION OF JUDGES MOVING INTO THE FINAL WEEK BOTH CANDIDATES AGREE THAT AN EXPECTED LOW TURNOUT MAKES THE RACE TOO CLOSE TO CALL AND THAT OVERCOMING THE INDIFFERENCE OF MOST VOTERS TO SUPREME COURT CONTESTS IS THE CRUCIAL INGREDIENT MR GONZALEZ WHO TOOK 42 OF THE 800000 VOTES CAST IN THE MARCH 8 PRIMARY SAYS HE MAINTAINS HIS LEAD OVER MS HAAS BUT CAMPAIGN POLLS SUGGEST MANY VOTERS REMAIN UNDECIDED SO BOTH CAMPS ARE FOCUSING THEIR EFFORTS WHERE LOCAL RUNOFFS ARE GENERATING THE MOST VOTER INTEREST SUCH AS HOUSTON AND IN A CONTEST DOMINATED BY TV ADVERTISING THE CANDIDATES ARE PLUNGING INTO OLDFASHIONED STREETLEVEL CAMPAIGNING MS HAAS SPENDS THE SATURDAY MORNING BEFORE EASTER AT A BREAKFAST SPONSORED BY THE BAPTIST MINISTERS ASSOCIATION OF HOUSTON A GROUP REPRESENTING ABOUT 600 BLACK CHURCHES SHE HAS ALREADY RECEIVED THE GROUP'S ENDORSEMENT THE MEETING IS TO REMIND THE PASTORS TO ENCOURAGE THEIR CONGREGATIONS TO VOTE AGAIN IN THE RUNOFF SHE THEN FLIES IN A CHARTERED TWINENGINE PLANE TO EDINBURG IN MR GONZALEZ'S HOME COUNTY OF HIDALGO WHERE ATTORNEYS AND POLITICAL OFFICIALS HAVE HASTILY ORGANIZED A RALLY WHILE A MARIACHI BAND PLAYS THE CANDIDATE IS INTRODUCED AROUND THE ROOM THE EVENT DRAWS ABOUT 75 PEOPLE MANY OF THEM LOCAL CANDIDATES HOPING TO SHARE IN THE EXPOSURE AND GETS NEWS COVERAGE FROM TWO LOCAL TV STATIONS ON THE QUIET HOLIDAY WEEKEND HERE MS HAAS CRITICIZES RECENT COURT RULINGS INCLUDING A 1992 DECISION ON SCHOOL FINANCE WRITTEN BY JUSTICE GONZALEZ REJECTING A LEGISLATIVE PLAN TO EQUALIZE SCHOOL FUNDING AMONG RICH AND POOR DISTRICTS CRITICS SAY THAT COST THE RIO GRANDE VALLEY 20 MILLION IN ADDITIONAL FUNDS RAUL GONZALEZ SHE CONCLUDES DOES NOT DESERVE OUR SUPPORT ON HIS SWING THROUGH EAST TEXAS MR GONZALEZ MAKES MORE STOPS BUT ATTENDS FEWER EVENTS ORGANIZED FOR HIS BENEFIT INSTEAD HE DROPS BY COUNTY COURTHOUSES HANDING OUT CAMPAIGN CARDS AND ASKING LAWYERS COURT EMPLOYEES AND LOCAL ELECTED OFFICIALS FOR THEIR SUPPORT MS HAAS CARRIED MOST OF THESE COUNTIES IN THE PRIMARY LARGELY BY BLANKETING THEM WITH TV SPOTS MR GONZALEZ'S GOAL IS TO PICK UP LOCAL NEWSPAPER COVERAGE AND PUBLICIZE ENDORSEMENTS FROM LOCAL STATE REPRESENTATIVES WE'RE TRYING TO DO WITH FREE PRESS WHAT SHE DOES WITH HER ADS SAYS CHARLEY WILKISON AN EAST TEXAS POLITICAL CONSULTANT WHO ORGANIZED THE TRIP DOES HIS PITCH WORK GAFFNEY PHILLIPS A LOCAL LAWYER PROBATING A WILL IN THE COURTHOUSE SAYS MS HAAS HAS A LOT OF NAME RECOGNITION THANKS TO HER TV ADS BUT PREDICTS MR GONZALEZ'S ONEONONE APPROACH WILL PAY OFF IN THE END THIS IS A SMALL COMMUNITY SHE SAYS WORDOFMOUTH HAS A GREAT DEAL OF EFFECT HERE BY DAY'S END MR GONZALEZ STOPS IN SEVEN TOWNS CONCLUDING WITH A FUNDRAISER AT A LUFKIN COUNTRY CLUB ORGANIZED BY A LOCAL LAW FIRM AND BUDDY TEMPLE A FORMER RAILROAD COMMISSIONER AND A DIRECTOR OF TEMPLEINLAND INC THE EVENT DRAWS ABOUT 50 PEOPLE AND BRINGS IN ABOUT 35000 ALL THE PEOPLE HERE TONIGHT WILL BE MOTIVATED AND IN A LOWTURNOUT ELECTION IT'S GOING TO HAVE AN EFFECT MR TEMPLE SAYS 9404060019 940406 INTERNATIONAL BRIEF SHARP CORP COMPANY PLANS PC INTERFACE WITH NIPPON TELEGRAPH UNIT NTT MOBILE COMMUNICATIONS NETWORK INC AND SHARP CORP ARE TYING UP TO CREATE INTERFACE CABLES TO LINK PORTABLE PERSONAL COMPUTERS AND OTHER DATA COMMUNICATIONS DEVICES TO DIGITAL CELLULAR TELEPHONES SPOKESMEN FOR THE TWO JAPANESE COMPANIES SAID THE SPOKESMEN SAID THE TWO COMPANIES WILL JOINTLY DEVELOP THE INTERFACES AND AIM TO PUT THEM ON THE MARKET THIS AUTUMN NEITHER NTT MOBILE NOR SHARP HAS PROJECTED SALES YET NTT MOBILE IS A SUBSIDIARY OF NIPPON TELEGRAPH & TELEPHONE CORP THE JAPANESE TELECOMMUNICATIONS GIANT SHARP IS A MAJOR CONSUMERELECTRONICS MAKER 9404060018 940406 MARKETING & MEDIA BEST SELLING BOOKS THE WALL STREET JOURNAL'S LIST REFLECTS NATIONWIDE SALES OF HARDCOVER BOOKS DURING THE WEEK ENDED LAST SATURDAY AT MORE THAN 2500 B DALTON BARNES & NOBLE BOOKLAND BOOKSAMILLION BOOKSTAR BOOKSTOP BORDERS BRENTANO'S CROWN BOOKS DOUBLEDAY SCRIBNERS SUPER CROWN AND WALDENBOOKS STORES THE SALES INDEX PEGGED AT 100 FOR THE BESTSELLING FICTION BOOK EACH WEEK INDICATES RELATIVE SALES VOLUME ACROSS TITLES AND CATEGORIES 9404060017 940406 JUSTICE BLACKMUN IS EXPECTED TO RETIRE SEN MITCHELL HEADS LIST OF NOMINEES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON JUSTICE HARRY BLACKMUN IS EXPECTED TO ANNOUNCE AS EARLY AS TODAY THAT HE WILL RETIRE AT THE END OF THE SUPREME COURT'S TERM IN JUNE WHITE HOUSE AIDES HAVE BEEN ANTICIPATING THE ANNOUNCEMENT FOR AT LEAST SEVERAL DAYS AND ARE PREPARING A LIST OF POSSIBLE NOMINEES WITH THE NAME OF SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE TOPPING THE LIST THE HIGH COURT'S OLDEST AND MOST SENIOR MEMBER JUSTICE BLACKMUN 85 YEARS OLD HAS SPOKEN PUBLICLY AND PRIVATELY OF RETIRING FOR THE PAST FEW YEARS AS RECENTLY AS LAST MONTH THOUGH HE WAS TOYING WITH THE IDEA OF STAYING ON THE COURT FOR ANOTHER TERM ACCORDING TO FRIENDS NOW DESPITE RELATIVELY GOOD HEALTH HE HAS APPARENTLY DECIDED TO MAKE THIS HIS 24TH YEAR ON THE BENCH HIS LAST FRIENDS AND ASSOCIATES SAID JUSTICE BLACKMUN WAS DETERMINED TO HAVE PRESIDENT CLINTON NAME HIS SUCCESSOR BECAUSE OF THE PRESIDENT'S PLEDGE TO APPOINT JUSTICES WHO WOULD SUPPORT ROE VS WADE THE 1973 DECISION RECOGNIZING A CONSTITUTIONAL RIGHT TO ABORTION JUSTICE BLACKMUN WROTE THE HIGH COURT'S OPINION IN THAT CASE AND HE WANTS PASSIONATELY FOR HIS LEGACY TO BE PRESERVED A SUPREME COURT VACANCY COULDN'T COME AT A MORE POLITICALLY OPPORTUNE TIME FOR THE PRESIDENT PROVIDING A WELCOME DISTRACTION FROM THE WHITEWATER AFFAIR LAST YEAR THE SUCCESSFUL NOMINATION OF JUSTICE RUTH BADER GINSBURG HELPED THE WHITE HOUSE PUT ANOTHER BUMPY PERIOD HIGHLIGHTED BY THE FIRING OF THE TRAVEL STAFF AND MR CLINTON'S FAMOUS LOS ANGELES AIRPORT HAIRCUT BEHIND IT A POPULAR CHOICE SUCH AS SEN MITCHELL COULD PROVIDE AN EVEN STRONGER POLITICAL LIFT BUT PICKING A REPLACEMENT FOR JUSTICE BLACKMUN CARRIES OBVIOUS RISKS AS WELL WITH CONSERVATIVE OPPONENTS EMBOLDENED BY WHITEWATER A NOMINEE WITH ANY HIDDEN FLAWS OR ONE DEEMED TOO LIBERAL COULD PROVOKE A STORM OF OPPOSITION WITH HEALTHCARE LEGISLATION PENDING THE LAST THING PRESIDENT CLINTON NEEDS IS A DRAWNOUT CONFIRMATION BATTLE IT ISN'T LIKELY THAT MR CLINTON'S SECOND CHANCE TO FILL A SUPREME COURT VACANCY WILL GIVE HIM AN OPPORTUNITY TO DRASTICALLY INFLUENCE THE GENERALLY CONSERVATIVE COURT'S POLITICAL BALANCE THOUGH A LIFELONG REPUBLICAN WHO WAS APPOINTED BY PRESIDENT RICHARD NIXON JUSTICE BLACKMUN HAS MOVED TO THE LEFT OVER THE YEARS AND IS CONSIDERED THE HIGH COURT'S MOSTLIBERAL MEMBER IN MOST CASES THAT HAVE AN IDEOLOGICAL CAST WHAT THE PRESIDENT COULD TRY TO ACCOMPLISH ACCORDING TO AIDES IS CHOOSING A PERSON CAPABLE OF BUILDING COALITIONS WITH JUSTICE GINSBURG THE GENERALLY LIBERAL JOHN PAUL STEVENS AND MODERATETOCONSERVATIVE DAVID SOUTER SANDRA DAY O'CONNOR AND ANTHONY KENNEDY MAJORITY LEADER MITCHELL SHOT TO THE TOP OF THE LIST OF POTENTIAL CLINTON COURT PICKS WHEN THE MAINE DEMOCRAT ANNOUNCED LAST MONTH THAT HE WILL LEAVE THE SENATE AND ACKNOWLEDGED THAT HE WOULD BE INTERESTED IN A HIGH COURT SEAT IF ONE OPENED UP SEN MITCHELL A FORMER FEDERAL JUDGE AND A STRONGLY LIBERAL MEMBER OF CONGRESS IS SEEN AS ALMOST CERTAIN TO BE CONFIRMED BY HIS SENATE COLLEAGUES THERE COULD BE ONE PROBLEM WITH CHOOSING SEN MITCHELL HOWEVER IF HE WERE TO RESIGN BEFORE CONGRESS ADJOURNS IN OCTOBER SENATE DEMOCRATS COULD BE LEFT WITHOUT A STRONG LEADER IN THE CRITICAL FIGHT OVER HEALTHCARE REFORM A SUPREME COURT SPOKESWOMAN DECLINED TO COMMENT ON THE MATTER AND JUSTICE BLACKMUN COULDN'T BE REACHED FOR COMMENT SEN MITCHELL ALSO COULDN'T BE REACHED OTHER POTENTIAL NOMINEES WHO WILL RECEIVE SERIOUS CONSIDERATION BY THE WHITE HOUSE INCLUDE JOSE CABRANES CHIEF FEDERAL TRIAL JUDGE IN CONNECTICUT RICHARD ARNOLD THE LITTLE ROCK ARKBASED CHIEF JUDGE OF THE US COURT OF APPEALS FOR THE EIGHTH CIRCUIT AND A LONGTIME CLINTON FRIEND AND DREW DAYS A FORMER YALE LAW SCHOOL PROFESSOR WHO NOW IS SOLICITOR GENERAL THE ADMINISTRATION'S TOP APPELLATE ADVOCATE MR CLINTON HAS ALSO SAID HE WOULD CONSIDER THE MAN WHO WAS RUNNERUP TO JUSTICE GINSBURG LAST SUMMER STEPHEN BREYER CHIEF JUDGE OF THE US COURT OF APPEALS FOR THE FIRST CIRCUIT IN BOSTON 9404060016 940406 ECONOMY ECONOMIC EXPANSION BEGINS TO PRODUCE SCATTERED BOTTLENECKS IN SUPPLY CHAIN BY FRED R BLEAKLEY AND OSCAR SURIS STAFF REPORTERS OF THE WALL STREET JOURNAL WHILE MOST ECONOMISTS STILL SAY THAT THEY DON'T SEE SERIOUS INFLATION ON THE HORIZON THE ECONOMY'S QUICK EXPANSION IN THE PAST SIX MONTHS HAS BEGUN TO PRODUCE SCATTERED BOTTLENECKS IN THE SUPPLY CHAIN AND WHERE BOTTLENECKS OCCUR PRICE RISES USUALLY FOLLOW WE'RE NOT OFF TO THE RACES ON INFLATION BUT WE MAY BE ENTERING A PERIOD WHERE WE MAY HAVE TO ACCEPT SOME PRICE INCREASES SAYS MICHAEL COSGROVE WHO RUNS ECONOCLAST A DALLAS ECONOMIC CONSULTING SERVICE THE RECENT TURMOIL IN THE FINANCIAL MARKETS DRIVEN LARGELY BY FEARS OF INFLATION HAS SENT ECONOMISTS AND INVESTORS ALIKE SCRAMBLING TO SEE WHERE INFLATION MAY BE LURKING THEY HAVEN'T FOUND MUCH BUT SOME PRESSURE POINTS IN THE ECONOMY ARE BECOMING EVIDENT STEEL COMPANIES FACING A SURGE IN DEMAND ARE RATIONING SHIPMENTS TO SOME CUSTOMERS A SIGN THAT PRICING POWER MAY BE ON THEIR SIDE WHEN THEY NEGOTIATE LONGTERM CONTRACTS WITH THE AUTO COMPANIES THIS FALL IN THE HOMEBUILDING INDUSTRY THE RISING COST OF LUMBER AND OTHER MATERIALS IS FINDING ITS WAY INTO THE PRICE OF NEW HOMES AND IN THE PULP AND LINERBOARD INDUSTRIES WHICH SUPPLY PAPER AND CARDBOARDBOX COMPANIES THE FIRST PRICE INCREASES IN SEVERAL YEARS ARE TAKING HOLD AS SUPPLIES DWINDLE AMID STRONG DEMAND EVEN IN THE CHEMICAL INDUSTRY WHICH FOR YEARS HAS SUFFERED FROM OVERCAPACITY WE ARE BEGINNING TO REACH THE THRESHOLD WHERE WE WILL SEE PRICES STICK SAYS RICHARD STUCKEY CHIEF ECONOMIST FOR DUPONT CO MUCH OF COURSE DEPENDS ON WHETHER THE ECONOMY CONTINUES TO GROW AT A HEALTHY RATE IF IT DOES THEN MORE PRICES ARE LIKELY TO RISE AN EARLY EFFECT OF THE ECONOMY'S EXPANSION CAN BE SEEN IN TWO AREAS FIRST PRICES OF RAW INDUSTRIAL MATERIALS LESS ENERGY ARE UP 114 SINCE EARLY OCTOBER SECOND USE OF PLANT CAPACITY JUMPED TO 834 IN FEBRUARY FROM 814 LAST SEPTEMBER MANY INDUSTRIES INCLUDING LUMBER IRON AND STEEL AUTOS AND LIGHT TRUCKS COMPUTERS PULP AND PAPER AND PETROLEUM PRODUCTS ARE ABOVE THE 90 LEVEL ALTHOUGH SOME ECONOMISTS ARGUE THAT EXCESS GLOBAL CAPACITY WILL KEEP PRICES UNDER CONTROL MR REYNOLDS DISAGREES FOR US TO TAKE ADVANTAGE OF CAPACITY IN OTHER COUNTRIES WE HAVE TO IMPORT MORE WHICH PUTS DOWNWARD PRESSURE ON THE DOLLAR HE REASONS A WEAKER DOLLAR USUALLY MEANS HIGHER INFLATION FOREIGN GOODS SUCH AS AUTOS WOULD COST MORE IN DOLLAR TERMS GIVING US SUPPLIERS ROOM TO RAISE THEIR OWN PRICES ON THE HOME FRONT RISING LUMBER PRICES HAVE ADDED ABOUT 4000 OVER THE PAST YEAR TO THE AVERAGE COST 132000 OF A NEW HOUSE ESTIMATES THE NATIONAL ASSOCIATION OF HOME BUILDERS LUMBER PRICES HAVE FALLEN AGAIN IN RECENT WEEKS BUT BUILDERS HAVE STARTED PASSING ALONG TO CONSUMERS THE COST OF OTHER HOME MATERIALS SUCH AS WALLBOARD INSULATION AND CEMENTPRICES OF WHICH HAVE RISEN RAPIDLY IN THE PAST YEAR THAT COULD WELL BOOST THE MEDIAN PRICE OF NEW HOMES 3 ABOVE THE NATIONAL INFLATION RATE THIS YEAR SAYS THE ASSOCIATION IN THE STEEL INDUSTRY TIGHT SUPPLIES HAVE LED SOME MILLS TO ALLOCATE STEEL TO THEIR BEST CUSTOMERS FIRST LEAVING OTHERS TO FEND FOR THEMSELVES PRICING POWER RETURNED TO THE STEEL INDUSTRY LAST YEAR THE LONGER A SELLER'S MARKET STAYS THE EASIER IT IS TO PUT THROUGH PRICE INCREASES SAYS PETER MARCUS A STEEL ANALYST FOR PAINEWEBBER INC MR MARCUS SAYS PRICES ROSE ABOUT 3 IN JANUARY THE INDUSTRY PLANS TO RAISE PRICES ANOTHER 2 IN JULY AND MR MARCUS THINKS THAT WILL STICK TOO DESPITE RISING STEEL IMPORTS WE'RE RUNNING OUR PLANTS CLOSE TO CAPACITY SAYS F KENNETH IVERSON CHAIRMAN OF NUCOR CORP WHICH RELIES HEAVILY ON SCRAP STEEL AS A RAW MATERIAL THOUGH THE PRICE OF SCRAP STEEL HAS RISEN 30 IN THE LAST YEAR STRONG DEMAND FOR NUCOR'S FINISHED PRODUCT HAS ALLOWED THE COMPANY TO PASS THAT PRICE RISE RIGHT ALONG TO THE CUSTOMER ANALYSTS SAY THAT SOME STEEL COMPANIES HAVE EVEN SHIFTED TO TAKING ORDERS MONTH TO MONTH RATHER THAN THE USUAL PRACTICE OF TAKING ORDERS QUARTERLY SO THEY CAN INCLUDE HIGHER COSTS FOR RAW MATERIALS IN THE PRICE OF THEIR PRODUCT FURTHER UP THE SUPPLIER FOOD CHAIN HAYES WHEELS INTERNATIONAL INC OF ROMULUS MICH IS SUPPLYING ALUMINUM WHEELS TO A SURGING AUTO INDUSTRY THE COMPANY'S MATERIALS COSTS JUMPED 18 IN THE FIRST QUARTER BECAUSE OF RISING ALUMINUM PRICES STRONG DEMAND ALSO FORCED THE CONCERN TO DOUBLE HIRING AT A NEW PLANT IN GAINESVILLE GA WHERE PRODUCTION CAPACITY HAS BEEN INCREASED TO 12 MILLION WHEELS FROM 600000 WHEELS A YEAR MEANWHILE AT AN EXISTING PLANT IN HUNTINGTON IND HAYES IS RUNNING FLAT OUT TO FILL CUSTOMER ORDERS ITS FACTORIES ARE OPERATING 20 HOURS A DAY DURING THE WEEK AND 24 HOURS A DAY ON THE WEEKEND SO KEEN IS THE DEMAND FOR WORKERS SUCH AS ELECTRICIANS TO OPERATE THE PLANT THAT HAYES SAID IT MAY SOON HAVE TO RAISE WAGES FOR SKILLED LABORERS TO AVOID LOSING WORKERS TO OTHER MANUFACTURERS IN THE AREA THE END RESULT HAYES IS ALREADY RAISING THE PRICES OF THE PRODUCTS IT SELLS TO GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP STILL THE BOTTLENECKS AND PRICE INCREASES ARE ONLY IN PARTS OF THE ECONOMY AND ARE FAR FROM A CRITICAL STATE ECONOMISTS THEREFORE CONCLUDE THAT BROADER INFLATION ISN'T IN THE CARDS QUITE YET TRY AS I MAY I CAN'T FIND INCIPIENT INFLATION SAYS IRWIN KELLNER CHIEF ECONOMIST FOR CHEMICAL BANKING CORP ERLE NORTON CONTRIBUTED TO THIS ARTICLE 9404060015 940406 INTERNATIONAL BRIEF DEUTSCHE BANK AG RESEARCH SUBSIDIARY ACQUIRES UNIT OF BANQUE PALLAS STERN DB RESEARCH THE RESEARCH WING OF GERMANY'S DEUTSCHE BANK AG SAID IT HAS ACQUIRED EQUITIES RESEARCH GROUP ATLANTIC FINANCE OF FRANCE FROM BANQUE PALLAS STERN ATLANTIC FINANCE WILL CONTINUE TO OPERATE INDEPENDENTLY SPECIALIZING IN THE FRENCH EQUITY MARKET FRANKFURTBASED DB RESEARCH SAID DB RESEARCH IS ONE OF GERMANY'S MOST PROMINENT EQUITIES RESEARCH GROUPS IT HAS SAID IT WISHED TO BROADEN ITS FOCUS BEYOND THE GERMAN MARKET DOING MORE EUROPEWIDE RESEARCH 9404060014 940406 POLITICS & POLICY DINGELL LETTER LINKS OIL ISSUE TO HEALTH CARE BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL IN AN APPARENT BID FOR VOTES FOR HEALTHCARE REFORM IS ALIGNING HIMSELF WITH OILSTATE SENATE DEMOCRATS SEEKING RELIEF FOR DOMESTIC REFINERS AND INDEPENDENT PRODUCERS A LETTER TO PRESIDENT CLINTON COSIGNED BY THE MICHIGAN DEMOCRAT SUGGESTS A SOCALLED ENVIRONMENTAL EQUALIZATION LEVY TANTAMOUNT TO AN IMPORT FEE TO HELP DOMESTIC REFINERS BURDENED BY REGULATIONS IN THE CLEAN AIR ACT THE LETTER ALSO EMPHASIZES THE NEED FOR ACTION TO BOOST DOMESTIC PRODUCTION WITH POSSIBLE TAX RELIEF FOR INDEPENDENT PRODUCERS JOINING IN THE LETTER WERE SEVERAL OILSTATE SENATORS INCLUDING ENERGY COMMITTEE CHAIRMAN BENNETT JOHNSTON AND FELLOW LOUISIANIAN JOHN BREAUX A MEMBER OF THE SENATE FINANCE COMMITTEE BUT MR DINGELL'S NAME IS MOST SIGNIFICANT POLITICALLY AND IT UNDERSCORES HIS WILLINGNESS TO REACH OUT TO CONSERVATIVES IN HIS PARTY TO BUILD POLITICAL SUPPORT FOR HEALTHCARE LEGISLATION THE TWO ISSUES OIL AND HEALTH CARE ARE IMPLICITLY JOINED IN THE WORDING OF THE LETTER WHICH SUGGESTS THAT BOTH SHOULD BE ADDRESSED BY THE CLINTON ADMINISTRATION BECAUSE OF THEIR IMPORTANCE TO THE ECONOMIC SECURITY OF THE NATION IN CRAFTING HIS ALTERNATIVE TO THE PRESIDENT'S HEALTH PLAN MR DINGELL HAS ALREADY MADE SIGNIFICANT CONCESSIONS TO SMALLBUSINESS AND AGRICULTURAL INTERESTS IMPORTANT TO RURAL DEMOCRATS ON HIS COMMITTEE AND THE DECISION NOW TO LEND SUPPORT TO OIL INTERESTS UNDERSCORES HIS DETERMINATION TO DO WHAT HE NEEDS TO GET A MAJORITY REP WJ BILLY TAUZIN ANOTHER LOUISIANA DEMOCRAT IS AMONG THOSE WHOSE SUPPORT MR DINGELL NEEDS ON THE ENERGY AND COMMERCE COMMITTEE WHEN CONGRESS RETURNS FROM ITS SPRING RECESS NEXT WEEK AND OIL INTERESTS ARE IMPORTANT IN THE HOME STATES OF REP JIM SLATTERY D KAN AS WELL AS THE MORE CONSERVATIVE REP RALPH HALL D TEXAS BOTH ON THE COMMITTEE MR DINGELL'S ACTION IS IMPORTANT TOO IN LIGHT OF POLITICS ON THE SENATE FINANCE COMMITTEE BY ALIGNING HIMSELF WITH THE OILSTATE SENATORS MR DINGELL IS IMPLICITLY PRESENTING A CHALLENGE TO FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN THE NEW YORK DEMOCRAT HAS TENDED TO PLAY DOWN EXPECTATIONS FROM HIS COMMITTEE WHICH IS PIVOTAL TO THE SUCCESS OF HEALTH LEGISLATION THIS YEAR BY SHOWING A WILLINGNESS TO DEAL FOR VOTES MR DINGELL MAY PUT PRESSURE ON MR MOYNIHAN TO USE HIS CONSIDERABLE POWERS TO DO THE SAME AND ADVANCE THE PRESIDENT'S AGENDA THE FULL TEXT OF THE LETTER WASN'T AVAILABLE LAST NIGHT BUT AMONG THOSE SIGNING IT WAS SEN JEFF BINGAMAN A NEW MEXICO DEMOCRAT WHO IS A MEMBER OF SEN JOHNSTON'S ENERGY PANEL 9404060013 940406 INTERNATIONAL BRIEF COOKSON GROUP PLC BRITISH INDUSTRIAL SUPPLIER TO BUY UNION CARBIDE UNIT COOKSON GROUP PLC OF LONDON SAID IT INTENDS TO PURCHASE THE ELECTRONIC MATERIALS BUSINESSES OF UNION CARBIDE CORP OF THE US ROBERT MALPAS COOKSON CHAIRMAN SAID THE PRICE OF THE PROPOSED ACQUISITION FOR WHICH A LETTER OF INTENT HAS BEEN SIGNED BY BOTH PARTIES ISN'T BEING DISCLOSED BECAUSE THE SUM IS BELOW THE REGULATORY DISCLOSURE REQUIREMENTS COOKSON A MANUFACTURER AND SUPPLIER OF INDUSTRIAL MATERIALS SAID WORLDWIDE SALES OF THE UNION CARBIDE DIVISION AMOUNTED TO 28 MILLION IN 1993 THE AGREEMENT WITH THE DANBURY CONNBASED CHEMICAL COMPANY IS EXPECTED TO BE COMPLETED BY JUNE 9404060012 940406 TEXAS JOURNAL CLEARLY SHE DOESN'T KNOW THE MEANING OF DUTYFREE BY JAMES S HIRSCH HOUSTON THERE'S NOTHING LIKE A CRUISE ZEPHYR WINDS MOONLIT DINING NAFTA SEMINARS NAFTA IT'S A VACATION THAT ONLY AL GORE COULD LOVE CRUISES ARE SUPPOSED TO BE ABOUT PORTS NOT IMPORTS BUT MARGE HALLAM HAS OTHER IDEAS AS PRESIDENT OF TRAVEL THE WORLD A HOUSTON TRAVEL AGENCY MISS HALLAM BELIEVES THE NORTH AMERICAN FREE TRADE AGREEMENT IS THE PERFECT HOOK TO LURE TRAVELERS ABOARD A CARNIVAL CRUISE LINES SHIP SHE IS OFFERING A SPECIAL PACKAGE ON TWO SEVENDAY VOYAGES ONE IN JUNE AND ONE IN AUGUST THAT SAIL FROM LOS ANGELES TO THE MEXICAN RIVIERA FOR 1292 A PERSON CRUISERS GET A LOT MORE THAN CASINO GAMBLING MUSIC AND SHOWS THOSE WHO BOOK THROUGH MISS HALLAM ALSO CAN ATTEND NIGHTLY SEMINARS ON NAFTA MEXICAN ENTREPRENEURS ARE SWARMING UP HERE AND IT TROUBLES ME THAT AMERICANS AREN'T MORE AGGRESSIVE MISS HALLAM SAYS BECAUSE THE CRUISE MAKES THREE STOPS AT MEXICAN PORTS SHE ADDS TRAVELERS WILL HAVE MEXICO ON THEIR MINDS RUNNING THE SEMINARS WILL BE KEVIN J PRICE A 32YEAROLD HOUSTONIAN WHO HAS WRITTEN TWO BOOKS ON NAFTA HE DISCOUNTS THE POSSIBILITY THAT VACATIONERS WOULD RATHER DANCE AND DINE THAN DISCUSS TARIFFS THE SEMINARS WILL BE VERY BRIEF ABOUT 1 1/2 HOURS EACH AND VERY ENJOYABLE HE SAYS NOTING THAT HE PLANS TO SET UP DINNERS WITH MEXICAN BUSINESS LEADERS WHILE IN PORT SO HOW MANY OF THE 50 NAFTA SPOTS ON EACH CRUISE HAVE SOLD MISS HALLAM WON'T SAY BUT CARNIVAL SAYS THE NUMBER SO FAR IS ZERO OR SHOULD WE SAY NADA NAFTABASHER ROSS PEROT SHOULD BE PLEASED 9404060011 940406 TECHNOLOGY & HEALTH TRIAL BACKS VITAMIN A IN PRECANCER USE BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL AN EXPERIMENT IN ARIZONA WITH 300 WOMEN FOUND THAT A VITAMIN A OINTMENT SIMILAR TO THAT USED TO TREAT ACNE CAN CAUSE PRECANCEROUS CELLS IN THE CERVIX TO REVERT TO NORMAL THE OINTMENT CONTAINS A SYNTHETIC VARIATION OF VITAMIN A CALLED ALLTRANSRETINOIC ACID WHICH IS THE ACTIVE INGREDIENT IN JOHNSON & JOHNSON'S ACNEPRESCRIPTION DRUG RETINA VITAMIN A PREVIOUSLY HAS BEEN LINKED TO A REDUCED RISK FOR DEVELOPING PRECANCEROUS CERVICAL CELLS AND CERVICAL CANCER AND ALLTRANSRETINOIC ACID HAS BEEN SHOWN TO CHANGE DAMAGED CELLS BACK TO NORMAL IN TESTTUBE AND ANIMAL STUDIES THE ARIZONA FINDINGS ARE THE FIRST TO SHOW THE CERVICAL CELLREVERSAL EFFECT IN HUMANS UNDER THE WELLCONTROLLED CONDITIONS OF A CLINICAL TRIAL ACCORDING TO THE RESEARCHERS THIS IS ONE OF THE IMPORTANT FIRSTGENERATION STUDIES IN THIS AREA SAID FRANK L MEYSKENS JR THE LEAD RESEARCHER OF THE STUDY PUBLISHED IN TODAY'S ISSUE OF THE JOURNAL OF THE NATIONAL CANCER INSTITUTE DR MEYSKENS WHO BEGAN THE STUDY WHILE HE WAS AT THE UNIVERSITY OF ARIZONA TUCSON IS NOW THE DIRECTOR OF THE UNIVERSITY OF CALIFORNIA IRVINE CANCER CENTER THE PRECANCEROUS CONDITION CALLED CERVICAL DYSPLASIA OCCURS WHEN THE DNA OF CERVICAL CELLS IS DAMAGED OFTEN BY A VIRUS CALLED HUMAN PAPILLOMAVIRUS WHICH HAS BEEN IMPLICATED IN CERVICAL CANCER ABOUT 3 OF SEXUALLY ACTIVE YOUNG WOMEN DEVELOP CERVICAL DYSPLASIA EACH YEAR DETECTED BY A PAP SMEAR SAID DAVID S ALBERTS DIRECTOR OF CANCER PREVENTION AND CONTROL AT THE UNIVERSITY OF ARIZONA'S CANCER CENTER IN TUCSON AND ONE OF THE STUDY'S AUTHORS IN SOME MILD CASES THE CONDITION GOES AWAY ON ITS OWN BUT SOME CASES THAT ARE UNTREATED WILL DEVELOP INTO CANCER WHICH AFFLICTS MORE THAN 13500 WOMEN A YEAR IN THE US AND KILLS ABOUT 4000 OF THEM WHEN THE MODERATE STAGES OF CERVICAL DYSPLASIA PERSIST FOR SIX MONTHS OR WHEN IT BECOMES SEVERE THE LESION IS USUALLY REMOVED BY OUTPATIENT LASER SURGERY ALTHOUGH IN SOME SEVERE CASES A HYSTERECTOMY IS PERFORMED THE ARIZONA STUDY FOUND THAT IN 43 OF THE WOMEN WITH MODERATE CERVICAL DYSPLASIA THE PRECANCEROUS CELLS DISAPPEARED FOLLOWING TREATMENT WITH THE ALLTRANSRETINOIC ACID PREPARATION COMPARED WITH 27 OF PATIENTS WITH MODERATE DYSPLASIA TREATED WITH A PLACEBO AMONG WOMEN WITH SEVERE DYSPLASIA THERE WASN'T ANY DIFFERENCE BETWEEN THE TREATED AND PLACEBO GROUP INDICATING THE DRUG MAY NOT BE EFFECTIVE ONCE THE CELLS HAVE ADVANCED TOO FAR TOWARD CANCER THE DRUG WHICH WAS PREPARED BY JOHNSON & JOHNSON OR A PLACEBO OINTMENT WAS ADMINISTERED ON A SPONGE IN A CERVICAL CAP INSERTED IN 301 WOMEN WITH MODERATE OR SEVERE DYSPLASIA THE WOMEN RECEIVED TREATMENT DAILY FOR FOUR DAYS INITIALLY AND AGAIN FOR TWO DAYS AT THE END OF THREE MONTHS AND SIX MONTHS THE STUDY ISN'T LIKELY TO CHANGE THE CURRENT STANDARD TREATMENT IN THE US SAID DR ALBERTS SURGICAL TREATMENT COSTS ABOUT 400 COMPARED WITH THE DRUG'S COST OF ABOUT 50 BUT SURGERY IS 95 TO 99 EFFECTIVE COMPARED WITH THE DRUG'S 43 IN MODERATE CASES DR ALBERTS NOTED HOWEVER HE SAID THERE MAY BE USES OF THE DRUG TO PREVENT CERVICAL DYSPLASIA IN HIGHRISK WOMEN THOSE WHO ARE SEXUALLY ACTIVE AND WHO ALSO SMOKE OR HAVE POOR DIETS LACKING IN VEGETABLES AND FRUITS IN THIRD WORLD COUNTRIES THE DRUG MAY BE AN ATTRACTIVE ALTERNATIVE TO SURGERY BECAUSE OF ITS LOWER COST HE ADDED IN MEXICO CERVICAL CANCER IS THE LEADING CANCER DEATH AMONG WOMEN HE SAID IN THE US CERVICAL CANCER DOESN'T RANK AMONG THE TOP 10 CAUSES OF CANCER DEATHS IN WOMEN SOME PATIENTS AND PHYSICIANS MAY ALSO OPT FOR THE DRUG TREATMENT IN CASES WHERE THE PATIENT WANTS TO AVOID SURGERY OR WHEN SURGERY HASN'T WORKED DR MEYSKENS SUGGESTED 9404060010 940406 BAD BOY OF BAD BOY FURNITURE BETS TWO CLINTONS ARE BETTER THAN ONE BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO WHEN WE LAST WROTE ABOUT BLAYNE BAD BOY LASTMAN HE HAD RUN AFOUL OF THE WHITE HOUSE FOR USING A PRESIDENTIAL LOOKALIKE TO SELL HIS FURNITURE UNDAUNTED THE CANADIAN RETAILER PLANS TO EXPAND THE CAMPAIGN IN HIS NEXT SERIES OF TELEVISION ADS A FIRST LADY LOOKALIKE WILL JOIN HER HUSBAND IN A QUEST FOR A NEW SOFA MR LASTMAN WHO OWNS THREE BAD BOY FURNITURE & APPLIANCES OUTLETS IN THE TORONTO AREA SAYS THE FIRST LOT OF ADS FEATURING THE PRESIDENTIAL IMPOSTOR INCREASED SALES ABOUT 40 HE FIGURES INVOKING HILLARY RODHAM CLINTON WILL HELP EVEN MORE SHE'LL DO EVEN BETTER SELLING FURNITURE THAN SHE DID SELLING CATTLE FUTURES MR LASTMAN PREDICTS TO HANDLE THE JOB HE HAS HIRED ELAINE KOUBA A LAS VEGAS IMPERSONATOR WHO FREQUENTLY MIMICS MRS CLINTON SHE'LL BE WORKING WITH TIM WATERS THE PRESIDENTIAL DOUBLE WHO COMES FROM TAMPA FLA WE'RE GOING TO SHOOT SOME SPOTS THAT HAVE THE CLINTONS HUNTING FOR A SOFA AND PERHAPS WORRYING ABOUT GETTING IT DELIVERED TO WASHINGTON MR LASTMAN EXPLAINS BUT IT WON'T BE A PROBLEM BECAUSE BAD BOY DELIVERS EVERYWHERE MR LASTMAN DREAMED UP THE PROMOTION TO DRAW ATTENTION TO THE CHAIN'S BOAST THAT IT OFFERS THE LOWEST PRICES IN BOTH THE US AND CANADA THE RESULT HIGHER SALES LOTS OF PUBLICITY AND A LETTER FROM WHITE HOUSE LAWYERS ASKING HIM TO CEASE AND DESIST USING THE PRESIDENT'S IMAGE TO PROMOTE HIS STORES NOT A CHANCE RESPONDS MR LASTMAN WHO SAYS HE HAS RECEIVED LETTERS OF SUPPORT FROM MANY AMERICANS THEY'RE GOING TO MARCH ACROSS THE BORDER AND SHUT ME DOWN HE ASKS NEEL LATTIMORE DEPUTY PRESS SECRETARY TO THE FIRST LADY ACKNOWLEDGES THAT THE WHITE HOUSE MAY NOT HAVE MUCH JURISDICTION IN A FOREIGN COUNTRY LOTS OF PEOPLE POKE FUN AT THE PRESIDENT AND MRS CLINTON WE ALL THINK IT'S FUNNY AND SO DO THE CLINTONS HE SAYS BUT AN IMPERSONATOR OF THE FIRST LADY ENDORSING FURNITURE DEALS IS JUST NOT APPROPRIATE THE CLINTONS CAN REST EASY ON ONE COUNT THOUGH A CUSTOMER WROTE IN TO PROPOSE THAT HIS CAT A SOCKS LOOKALIKE STAR IN A THIRD SERIES OF ADS MR LASTMAN DECLINED WITH THANKS HE SAYS HE DOESN'T LIKE CATS 9404060009 940406 THESE BIG CLOCKS ACTUALLY ARE MADE BY GRANDFATHERS WITH TIME ON THEIR HANDS RETIREES TAKE TO THE WORK OF FASHIONING HEIRLOOMS BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL EXCELSIOR MINN FAR IN THE BACK OF KUEMPEL CHIME CLOCKWORKS & STUDIO PAST THE PLATTER OF HOMEMADE CHOCOLATECHIP COOKIES PAST THE GRAY OVEN WHERE CLOCK FACES ARE BAKING RUSSELL BARNARD STOOPS OVER A HOT TEAKETTLE HIS RUDDY FACE DARKENING IN THE HEAT THE 66YEAROLD MR BARNARD LABORS FOR 30 MINUTES TO STEAM A FLAT WOODEN SLAB UNTIL IT CURVES LIKE NAPOLEON'S HAT PERFECT FOR THE TOP OF THE HUMPBACKED TAMBOUR CLOCK NEARBY 16 OTHER MODERNDAY GEPPETTOS PATIENTLY POLISH TUBULAR BELLS AND POUND OUT PENDULUMS THE SHOP IN A VILLAGE OF 2400 ON THE SHORES OF LAKE MINNETONKA IS ONE OF JUST A HANDFUL OF US COMPANIES STILL CRAFTING GRANDFATHER CLOCKS BUT IT HAS ANOTHER DISTINCTION EVEN AS MANY OTHER COMPANIES ARE ENCOURAGING EARLY RETIREMENT KUEMPEL ENCOURAGES AND HIRES THE ALREADY RETIRED VIRTUALLY ALL THE GRANDFATHERCLOCKMAKERS ARE GRANDFATHERS WITH AN AVERAGE AGE OF 69 THERE IS ALSO ONE GRANDMOTHER ON THE PREMISES VIVIAN FLATTEN THE 64YEAROLD COMPANY SECRETARY AND KUEMPEL MAKES A SMALLER GRANDMOTHER CLOCK TOO AS MRS FLATTEN TOTES A CLOCK FACE AND A WINDEX BOTTLE THROUGH THE SHOP 59YEAROLD JIM SUTHERLAND STOPS STAINING A CABINET PEERS AT HER OVER HIS HALFGLASSES AND TEASES HARD TO WORK AROUND HERE WITH ALL THESE BEAUTIFUL WOMEN ALEX SCHUMACHER 68 SOMETIMES GETS A LAUGH BY SNEAKILY STOPPING THE PENDULUMS ON COWORKERS' CLOCKS AFTER THEY HAVE CAREFULLY ACTIVATED THEM MR BARNARD OCCASIONALLY DROPS CLOCK WEIGHTS INTO COLLEAGUES' COAT POCKETS ONE SLIGHT FELLOW IN HIS 80S PRACTICALLY TOPPLED OVER WHEN HE REACHED FOR HIS BOOBYTRAPPED JACKET THESE AGING ARTISANS RELISH THE CAMARADERIE THE OCCASIONAL AFTERNOONS OFF FOR ICEFISHING AND THE CHANCE TO BE USEFUL SAYS 83YEAROLD CLIFFORD SAYRE AS HE SHAPES PENDULUM PARTS MY FATHERINLAW WHEN HE RETIRED WOULD SIT AND WATCH THE FOUR WALLS YOU DETERIORATE FAST THAT WAY THE CRAFTSMEN ALSO ENJOY THE CHANCE TO BEQUEATH ONEOFAKIND HEIRLOOMS TO A YOUNGER GENERATION SAWING OAK BOARDS WITH ARTHRITIC HANDS ALVIN BIG AL ROTH 78 SAYS HE BUILT TWO GRANDFATHER CLOCKS FOR HIS ADULT CHILDREN THE RETIRED SCHOOL PRINCIPAL PLANS IN TIME TO LEAVE CLOCKS TO HIS SIX GRANDCHILDREN IN A DIGITAL AGE HE FIGURES THEY ARE STILL A BIT YOUNG TO APPRECIATE WINDING A BIG CLOCK FOR YOUNG PEOPLE A NICE CLOCK ISN'T A PRIORITY THEY JUST HAVE LITTLE TICKERTOCKERS SAYS MARTHA GAETZ A 69YEAROLD CUSTOMER WHO WITH HER HUSBAND IS HANDING DOWN KUEMPEL CLOCKS TO 14 CHILDREN IT IS CUSTOMERS LIKE THE GAETZES WHO KEEP THE KUEMPEL SHOP TICKING IT WILL TURN OUT ABOUT 300 CLOCKS THIS YEAR RANGING IN PRICE FROM 525 TO 3500 THE COMPANY WHICH EXPECTS 700000 IN SALES THIS YEAR ALSO MAKES LESSEXPENSIVE REDIKUT KITS FOR AMATEURS TO ASSEMBLE ORDERS FOR CLOCKS AND KITS COME FROM AS FAR AWAY AS AUSTRALIA SOME CUSTOMERS STILL RESPOND TO MAGAZINE ADS PLACED 20 YEARS AGO THAT THEY HAVE FOUND IN YELLOWED PAGES OF POPULAR MECHANICS OR BETTER HOMES AND GARDENS KUEMPEL'S SIGNATURE IS ITS HANDPAINTED MOON WHEEL THE LITTLE DISK AT THE TOP OF THE CLOCK THAT ROTATES SLOWLY IN MEASURED INCREMENTS A PET GOAT APPEARS ON ONE WHEEL AN ANTIQUE WRENCH COLLECTION ON ANOTHER IT'S LIKE YOU GALS WITH YOUR EXCLUSIVE GOWNS EXPLAINS HANK TAXIS 76 AS HE CAREFULLY PACKS A CLOCK IN A SHIPPING CRATE NO TWO CLOCKS ARE EXACTLY ALIKE GRANDFATHER CLOCKS TRACE THEIR ROOTS TO THE LATE 1600S IN LONDON CLOCKMAKERS INVENTED THE LONGCASE MODEL WHICH STOOD ABOUT SIX FEET HANDCRAFTING TOOK TIME AND TALENT SO OWNING A TALL CLOCK AS IT FIRST BECAME KNOWN IN THE US CONVEYED STATUS IN THE 1880S AMERICA RENAMED THE CLOCK GRANDFATHER AFTER A POPULAR SONG ABOUT A CLOCK THAT STOPPED WHEN ITS 90YEAROLD OWNER DIED KUEMPEL'S ELDERLY CRAFTSMEN HAVE COME FROM ALL WALKS OF LIFE INDEED A RUNNING JOKE AT THE WORKSHOP IS THAT THE KUEMPEL FAMILY WOULD HIRE ANY TIMEWORN FELLOW WHO HAPPENED BY FOUNDER REUBEN KUEMPEL HAD THE GIFT OF GAB AND TRULY DID MOSTLY HIRE CUSTOMERS HE BEFRIENDED IN THE SHOP WHICH HE OPENED IN 1916 SEEKING PARTTIMERS MR KUEMPEL BEGAN HIRING THE ONLY PEOPLE HE COULD FIND WITH TIME ON THEIR HANDS RETIREES AND THE KUEMPEL FAMILY WHICH OWNED THE BUSINESS FOR TWO GENERATIONS SHOWED THEM COMPASSION AND PATIENCE EVEN AFTER PETE FLATTEN VIVIAN FLATTEN'S FATHERINLAW BECAME TOO WEAK IN HIS 90S TO COME TO WORK THE SHOP WOULD SEND HIM SMALL PARTS TO HANDLE AT HOME HE'D BEND THE SPRINGS THE WRONG WAY AND WE'D THROW OUT THE BATCH AND GIVE HIM SOME MORE SAYS MR SCHUMACHER RECALLING HIS LATE COLLEAGUE NOBODY EVER TOLD HIM WITH NO RETIREMENT AGE AT KUEMPEL MANY OF THE MEN WORK UNTIL THEIR OWN TICKERS STOP FOR A TIME DURING HIS 18 YEARS AT KUEMPEL MR BARNARD KEPT A LIST OF COWORKERS WHO HAD PASSED AWAY WHEN THE LIST GOT TOO LONG HE SAYS DRAWING HIS FINGER DOWN A WORKBENCH I STOPPED MR KUEMPEL'S DAUGHTER AUDREY MCGREGOR RAN THE COMPANY FOR ABOUT 20 YEARS BEFORE SELLING IT FOR MORE THAN 1 MILLION IN 1990 THE BUYERS WERE AN ENTREPRENEUR WHO ATTENDS HER METHODIST CHURCH AND TWO BANKERS ONE A WOODWORKER AND THE OTHER AN OWNER OF SIX CHIMINGCLOCKS AS THE COMPANY CHANGED HANDS SOME OF THE PATERNALISM SLIPPED AWAY TOO THE OLDER MEN REMINISCE ABOUT THE WAY MRS MCGREGOR WOULD COME AROUND EVERY MORNING TO CHAT WITH EACH EMPLOYEE AND ABOUT THE CHRISTMAS PARTIES SHE THREW AT A PRIVATE CLUB NEW WORKERS NO LONGER RECEIVE A GRANDFATHER CLOCK AT SOME POINT IN THEIR FIRST YEARS OF SERVICE TIMES ARE ACHANGING THE NEW OWNERS WHIPPERSNAPPERS IN THEIR 50S TALK ABOUT EXPANDING THE BUSINESS AND EVEN ABOUT SETTING UP A NATIONAL DEALER NETWORK STILL COOWNER JOHN SWON THE METHODIST ENTREPRENEUR SWEARS BY HIS ELDERLY WORK FORCE HE SAYS THEY ARE RELIABLE IN AT 7 AM SHARP MOTIVATED AND CHEAP MOST START AT 550 AN HOUR SO THEY DON'T JEOPARDIZE THEIR SOCIAL SECURITY CHECKS KUEMPEL'S HOURS WHICH THE EMPLOYEES WORK OUT FOR THEMSELVES ARE FLEXIBLE ESPECIALLY WHEN THE FISH ARE BITING EACH THURSDAY AFTERNOON AT 2 EVERYBODY REMINDS MR TAXIS THAT IT IS TIME FOR HIM TO PICK UP HIS WIFE WHO IS BLIND AND TAKE HER TO HER WEEKLY HAIR APPOINTMENT BUT MOSTLY THE MEN MOVE LIKE CLOCKWORK IN ASSEMBLYLINE FASHION SAWING SCREWING OR PACKING 90 TO 120 PARTS INTO EACH CLOCK WHICH CAN TAKE UP TO THREE WEEKS TO MAKE FRED HALES 77 IS A STICKLER ABOUT WHITTLING WOOD TO THE PERFECT THICKNESS IN A BACK CORNER ALDRICH ANDERSON 60 SHINES BELLS WITH AN UNUSUAL CONTRAPTION A SEARS ROLLER SKATE HOOKED UP TO A MACHINE TO PROVIDE FRICTION TO POLISH THE METAL MR BARNARD HAS A WAY WITH WOODEN DECORATIONS THE MEN MAKE A POINT OF TEACHING ONE ANOTHER THEIR SPECIALTIES BECAUSE IF SOMETHING HAPPENS TO ONE OF THEM PEOPLE HAVE TO KNOW HOW TO CARRY ON EXPLAINS MRS FLATTEN TO MR SCHUMACHER THE CONSTANT TICKING AND MUSICAL CHIMING THAT SURROUNDS THE MEN IN THE SHOP NEVER GROWS OLD AFTER ALL HIS YEARS AT KUEMPEL HE SAYS THE LOUDEST SOUND HE KNOWS IS WHEN A CLOCK STOPS YOU HEAR THE SILENCE HE SAYS 9404060008 940406 TEXAS JOURNAL HOUSTON DESIGN FIRM IS REGIONAL RARITY BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON NEVER MIND THAT BRYAN SAWYER'S 20PERSON FIRM DESIGNS PACKAGING FOR SUCH HOUSEHOLD FIXTURES AS MINUTE MAID ORANGE JUICE AND UNCLE BEN'S RICE THE GENERAL PUBLIC HASN'T HEARD OF CMA AND ITS PRESIDENT AND MAJORITY OWNER WOULDN'T MIND KEEPING IT THAT WAY OUR CUSTOMERS KNOW WHERE WE ARE MR SAWYER SAYS DESPITE ITS LOW PROFILE AND SMALL SIZE CLOSELY HELD CMA FORMERLY CREATIVE MARKETING ASSOCIATES CLAIMS TO BE THE BIGGEST FIRM SPECIALIZING IN FOOD PACKAGING IN THE SOUTHWEST SEVERAL TEXAS DESIGN FIRMS DO SOME FOOD PACKAGING INCLUDING RICHARDS GROUP IN DALLAS AND HIXO INC IN AUSTIN BUT MOST BIG DESIGN FIRMS ARE BASED IN NEW YORK CHICAGO OR CALIFORNIA WE DON'T RUN INTO ANYONE FROM THE SOUTHWEST WHEN BIDDING ON JOBS FOR NATIONAL FOOD BRANDS SAYS KAY STOUT A MANAGING DIRECTOR AT LANDOR ASSOCIATES A SAN FRANCISCO SUBSIDIARY OF NEW YORKBASED YOUNG & RUBICAM INC MS STOUT HADN'T HEARD OF CMA BEFORE BEING ASKED ABOUT THE FIRM BUT CMA WHICH DOESN'T ADVERTISE MAKE SALES CALLS OR BID ON JOBS DOESN'T SEEM HURT BY ITS TEXAS LOCATION ITS BILLINGS JUMPED 35 LAST YEAR TO 35 MILLION SAYS MR SAWYER WHO LEFT A JOB AS MANAGER OF CREATIVE SERVICES AT COCACOLA CO'S HOUSTONBASED FOOD DIVISION NINE YEARS AGO TO START HIS OWN COMPANY NEARLY ALL OF CMA'S BUSINESS COMES THROUGH WORDOFMOUTH AND INDUSTRY CONNECTIONS INCLUDING THOSE MR SAWYER MADE AT COCACOLA FOODS FRANK BLOD A FORMER VICE PRESIDENT OF MARKETING AT THE COCACOLA UNIT NOW IS A PRINCIPAL AT THE NEW ENGLAND CONSULTING GROUP IN WESTPORT CONN AND REFERS SOME OF HIS CLIENTS TO CMA HE RECENTLY REFERRED A SMALL FOOD COMPANY LOOKING TO HIRE SOME DESIGN TALENT ON A MODEST BUDGET HOUSTON GIVES THEM A COST ADVANTAGE OVER BIG CITIES MR BLOD SAYS THEY DON'T HAVE TO PAY HIGH RENTS OR DEAL WITH A STATE INCOME TAX THAT ISN'T THE ONLY EDGE CMA GETS FROM ITS TEXAS BASE DAVID ROTHGEB PUBLISHER OF SUPERMARKET NEWS A NEW YORKBASED TRADE PUBLICATION SAYS CMA'S LOCATION HAS HELPED IT BY SEPARATING IT OUT FROM THE CLUTTER OF THE PACK CONSIDER COORS BREWING CO SEEKING A NEW LABEL DESIGN FOR ONE OF ITS BEER LINES THE GOLDEN COLO BREWER RECENTLY CALLED CMA PARTLY BECAUSE THE FIRM HAD NEVER DONE A BEER LABEL BEFORE AND SO WOULD HAVE A FRESH PERSPECTIVE MR SAWYER SAYS COORS WON'T COMMENT MR SAWYER SAYS HE WAS SURPRISED WHEN COORS CALLED BECAUSE WHILE CMA DOES SUBSTANTIAL BUSINESS FOR BIGNAME CLIENTS MOST OF IT IS REPEAT BUSINESS FOR COCACOLA'S MINUTE MAID LINE THE FIRM DESIGNED OLYMPICTHEME ORANGEJUICE CONCENTRATE LABELS IN 1992 AND THEN FOR THIS YEAR'S WINTER OLYMPICS IT DESIGNED JUICE BOXES LAST YEAR CMA ALSO DESIGNED THE LABELS FOR MINUTE MAID'S NEW NATURAL LINE OF FRUIT JUICES AND REDESIGNED MINUTE MAID'S ENTIRE LINE OF ORANGEJUICE CARTONS MR SAWYER ALSO WAS SURPRISED BECAUSE MANY PROMINENT CMA CLIENTS INCLUDING COCACOLA FOODS AND MARS INC'S UNCLE BEN'S UNIT OF HOUSTON ARE BASED IN TEXAS FOOD MAKERS ARE INCREASINGLY HIRING SMALL SPECIALTY DESIGN FIRMS LIKE CMA SAYS MR ROTHGEB OF SUPERMARKET NEWS BECAUSE THEY CAN WORK FASTER CRANKING OUT A PRELIMINARY LABEL DESIGN IN LESS THAN 10 DAYS COMPARED WITH AS LONG AS A MONTH AT LARGER FIRMS WHEN COCACOLA NEEDED A RUSH JOB IN FEBRUARY ON A VENDINGMACHINE DESIGN FOR ITS NEW FRUITOPIA LINE OF FRUIT DRINKS IT CALLED CMA WE HAD EIGHT DAYS BEFORE THE PRESS CONFERENCE MR SAWYER SAYS THE RESULT A FUCHSIA MACHINE WITH ALTERNATELY BLINKING LIGHTS BEHIND ICONS OF A JUMPING MAN AND A PLANET THE ICONS HAD ALREADY BEEN CREATED BY DUFFY DESIGN OF MINNEAPOLIS WHICH DESIGNED THE LABEL FOR THE NEW DRINKS COCACOLA PLANS TO HAVE 5000 OF THE MACHINES MADE IN ADDITION TO 7000 STORE COOLERS CMA ALSO DESIGNED THE COOLER ART WHICH HAS A SIMILAR THEME TO THE VENDING MACHINES CMA'S LOW PROFILE HELPED IT LAND THE JOB BECAUSE COKE WANTED TO KEEP THE PROJECT OUT OF THE GOSSIP CHANNELS EVERYTHING WAS DONE IN THE STRICTEST SECRECY MR SAWYER SAYS SECURITY MEASURES INCLUDED NOT THROWING AWAY ANY DRAWINGS UNTIL COKE HELD ITS NEWS CONFERENCE COCACOLA DECLINES TO COMMENT ON CMA'S ROLE IN THE PROJECT CMA'S LOW PROFILE HAS ANOTHER ADVANTAGE ACCORDING TO MR SAWYER IT HELPS HOLD DOWN CALLS FROM ENTREPRENEURS WHO THINK I CAN MAKE THEIR CHOCOLATECHIP COOKIE A SUCCESS HE SAYS AS IT IS THE FIRM GETS A HANDFUL OF CALLS A WEEK FROM SMALL COMPANIES THAT CAN'T AFFORD HIS FEES WHICH START AT ABOUT 25000 FOR A SINGLE LABEL AND CAN RUN UP TO 100000 OR MORE FOR A PRODUCT LINE SOMETIMES MR SAWYER MAKES AN EXCEPTION FOR A COMPANY THAT SEEMS PROMISING IN THE CASE OF SMALL HOUSTONBASED BRIK TOY CO WHICH CMA TOOK ON AT A DISCOUNTED RATE ABOUT FIVE YEARS AGO THE GAMBLE PAID OFF THE COMPANY TOOK OFF AND IS NOW AN IMPORTANT CLIENT THEY BILLED ABOUT 200000 LAST YEAR MR SAWYER SAYS CMA IS ALSO GROWING AND FINDS THAT THEREIN LIES ONE NEGATIVE OF THE TEXAS LOCATION DIFFICULTY RECRUITING GRAPHIC ARTISTS WITH EXPERIENCE IN FOOD PACKAGING CMA WHICH NEEDS TWO NEW ARTISTS TO KEEP UP WITH ITS GROWTH HAS PLACED ADS IN SEVERAL NATIONAL TRADE PUBLICATIONS BUT RECEIVED FEW RESPONSES AMONG ARTISTS HOUSTON STILL HAS THE STIGMA OF COWBOYS AND INDIANS SAYS KEVIN O'CONNER CMA'S VICE PRESIDENT OF MARKETING IF YOU'RE A CREATIVE TYPE THERE ARE THREE PLACES CHICAGO LOS ANGELES OR NEW YORK 9404060007 940406 WHO'S NEWS PPG INDUSTRIES SELECTS TWO CONTENDERS FOR CEO'S POST TO NEWLY CREATED OFFICE BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH PPG INDUSTRIES INC CREATED AN OFFICE OF CHIEF EXECUTIVE AND NAMED TO IT TWO CONTENDERS FOR THE TOP JOB ROBERT D DUNCAN WHO HEADED PPG'S GLASS BUSINESS AND RAYMOND W LEBOEUF WHO RUNS THE COATINGS AND RESINS UNIT WERE NAMED TO THE NEW OFFICE ALONG WITH JERRY E DEMPSEY CURRENT CHAIRMAN AND CHIEF EXECUTIVE OFFICER AS PART OF THE MOVE MESSRS DUNCAN AND LEBOEUF PREVIOUSLY GROUP VICE PRESIDENTS WERE NAMED EXECUTIVE VICE PRESIDENTS DONALD A PATTISON AN ANALYST WITH CJ LAWRENCE SAID PPG IS USING THE NEW OFFICE OF THE CHIEF EXECUTIVE TO STRESS TO MESSRS DUNCAN 55 AND LEBOEUF 47 THAT THEY ARE THE TOP CONTENDERS AND NOT TO LEAVE THE COMPANY LAST MONTH ANOTHER CEO CANDIDATE RICHARD M ROMPALA RESIGNED AS HEAD OF PPG'S COATINGS AND RESINS GROUP TO BECOME PRESIDENT OF VALSPAR CORP A MINNEAPOLISBASED COATINGS CONCERN MESSRS DUNCAN LEBOEUF AND ROMPALA WERE CONSIDERED THE THREE INTERNAL CANDIDATES TO SUCCEED VINCENT A SARNI WHEN HE RETIRED IN AUGUST HOWEVER LAST YEAR THE BOARD BYPASSED ALL THREE SAYING THEY LACKED SUFFICIENT EXPERIENCE AND PICKED MR DEMPSEY WHO WAS CHAIRMAN OF CHEMICAL WASTE MANAGEMENT INC MR DEMPSEY 61 IS EXPECTED TO RETIRE WHEN HE REACHES 65 A COMPANY SPOKESMAN SAID THE OFFICE'S CREATION HAD BEEN IN THE WORKS FOR SEVERAL MONTHS THE NEW OFFICE ALSO IS NOTEWORTHY BECAUSE IT EXCLUDES PETER R HEINZE WHO RUNS THE COMPANY'S OTHER MAIN OPERATION CHEMICALS AND WAS CONSIDERED BY SOME OBSERVERS A POSSIBLE CANDIDATE MR HEINZE 51 PREVIOUSLY GROUP VICE PRESIDENT WAS NAMED SENIOR VICE PRESIDENT IN A STATEMENT MR DEMPSEY SAID THE MOVE IS A CONTINUATION OF A LEADERSHIP DEVELOPMENT PROCESS WITH ORGANIZATIONAL FLEXIBILITY TO ASSURE DEVELOPMENTAL OPPORTUNITIES FOR A NUMBER OF KEY EXECUTIVES UNDER THE NEW STRUCTURE MR DUNCAN TAKES OVERSIGHT RESPONSIBILITY FOR CHEMICALS GLASS FIBER AND GLASS AND ADMINISTRATIVE RESPONSIBILITY FOR SCIENCE AND TECHNOLOGY INFORMATION TECHNOLOGY PPG ASIA/PACIFIC AND INVESTOR RELATIONS MR LEBOEUF RETAINS OPERATIONAL RESPONSIBILITIES FOR COATINGS AND RESINS AND TAKES OVERSIGHT RESPONSIBILITIES FOR PURCHASING AND DISTRIBUTION PPG CANADA AND PPG EUROPE PPG ALSO NAMED THREE ADDITIONAL SENIOR VICE PRESIDENTS RUSSELL L CRANE 53 WAS NAMED SENIOR VICE PRESIDENT HUMAN RESOURCES AND ADMINISTRATION HE PREVIOUSLY WAS VICE PRESIDENT HUMAN RESOURCES JOHN J HORGAN 52 WAS NAMED SENIOR VICE PRESIDENT FIBER GLASS HE PREVIOUSLY WAS VICE PRESIDENT FIBER GLASS AND GUY A ZOGHBY 59 WAS NAMED SENIOR VICE PRESIDENT GENERAL COUNSEL HE PREVIOUSLY WAS VICE PRESIDENT GENERAL COUNSEL PPG STOCK CLOSED AT 75 A SHARE UP 1125 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE 9404060006 940406 LETTERS TO THE EDITOR ASHES AND SACKCLOTH IN REACTION TO MASSACRE AFTER READING YOUR MARCH 9 PAGEONE ARTICLE ON THE CLASH OF JEWISH IDEOLOGY WITHIN ISRAELI SOCIETY ONE IS LEFT WITH THE IMPRESSION THAT THOSE JEWS WHO RESIDE IN THE TERRITORIES MAY ALL BE EXTREMISTS THIS IS NOT TRUE MY SON BOB LANG WHO WAS INTERVIEWED AND QUOTED IN THE ARTICLE WAS AGHAST AT THE HORRIFIC EVENTS IN HEBRON THIS IS ALSO THE FEELING OF THE OTHER INHABITANTS WHO ABHOR TERRORISM VIOLENCE HAS TOUCHED THEIR LIVES FREQUENTLY FROM THE PLO AND HAMMAS GROUPS IN THE FORM OF KILLING STABBINGS AND STONINGS THE MURDER OF ARABS PRAYING IN THE HEBRON MOSQUE WAS INFLICTED BY ONE MAN THE JEWISH COMMUNITY IS ASHAMED OF THAT ISOLATED ACT AND HAS OPENLY DONNED ASHES AND SACKCLOTH AS AN ACT OF CONTRITION WHEN ARAB GOVERNMENTS TAKE SIMILAR ACTION WE WILL HAVE ARRIVED AT A NEW AGE THE PERESRABIN ADMINISTRATION THROUGH ACTIONS DURING THE PAST YEAR HAS DRIVEN A WEDGE BETWEEN JEWS LIVING WITHIN THE GREEN LINE AND THOSE IN THE TERRITORIES UNKNOWINGLY BARUCH GOLDBERG WITH HIS TERRIBLE DEED PLAYED DIRECTLY INTO THE GOVERNMENT'S HAND IF THE ISRAELI GOVERNMENT TAKES ACTION TO ETHNICALLY CLEANSE 140000 JEWS FROM THE TERRITORIES IT WILL ONLY ACCELERATE THE NEXT CONFLICT INSTEAD OF PERIODIC ATTACKS LAUNCHED BY HEZBOLAH ON NORTHERN ISRAEL THE ATTACKS OF THE FUTURE WILL BE ON JERUSALEM AND TEL AVIV THE SOCALLED SETTLEMENTS OF THE WEST BANK ARE ANYTHING BUT THAT THEY ARE FOR THE MOST PART THE SAME TYPE OF SUBURBAN COMMUNITIES NEAR MOST US CITIES IF BOTH ISRAELIS AND PALESTINIANS DESIRE A NEW BEGINNING IT WILL BE POSSIBLE FOR THE ACCORD SIGNED IN WASHINGTON LAST YEAR TO BE IMPLEMENTED A NEVILLE CHAMBERLAIN SOLUTION OF PEACE IN OUR TIME HOWEVER IS A PRESCRIPTION FOR DISASTER 9404060005 940406 ABREAST OF THE MARKET INDUSTRIALS JUMP 8206 TO 367541 AS INTEREST RATES TAKE A TUMBLE BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCKS ROCKETED AS INTEREST RATES CAME CASCADING DOWN SNAPPING BACK FROM MONDAY'S SHARP DROP THE DOW JONES INDUSTRIAL AVERAGE SURGED 8206 TO 367541 THE STANDARD & POOR'S 500STOCK INDEX SOARED 937 POINTS TO 44829 AND THE NASDAQ COMPOSITE INDEX RALLIED 2354 POINTS TO 75095 RECOUPING ABOUT HALF ITS LOSSES SINCE HITTING A HIGH OF 80393 ON MARCH 18 YOU HAD TO BE A VERY BEARISH PORTFOLIO MANAGER NOT TO FIND A COUPLE OF STOCKS THAT WERE CHEAP YESTERDAY MORNING SAID RICHARD HOEY PORTFOLIO MANAGER OF DREYFUS'S 15 BILLION GROWTH & INCOME FUND STOCKS STARTED THE DAY ON A STRONG NOTE HELPED BY EARLY GAINS IN THE BOND MARKET REVERSING A TWODAY LOSING STREAK THE TREASURY'S 30YEAR BOND CLIMBED MORE THAN 1 5/8 POINTS OR MORE THAN 1625 FOR EACH 1000 FACE AMOUNT THE YIELD FELL TO 724 FROM 740 MONDAY BARGAINHUNTING BY PORTFOLIO MANAGERS LIKE MR HOEY FUELED FURTHER GAINS IN STOCKS MR HOEY CASHED OUT OF SOME MEXICAN CONVERTIBLE SECURITIES YESTERDAY AND DEPLOYED THE FUNDS IN THE US STOCK MARKET BUYING STOCKS SUCH AS COOPER INDUSTRIES FEDERAL NATIONAL MORTGAGE ASSOCIATION WHEELABRATOR TECHNOLOGIES AND GEORGIAPACIFIC THERE ARE A LOT OF STOCKS OUT THERE AND A LOT OF THEM ARE DOWN A LOT MR HOEY SAID MEANWHILE ALL THAT BUYING PROMPTED SOME BEARISH INVESTORS TO COVER THEIR SHORT POSITIONS OR BETS THAT STOCK PRICES WILL FALL FURTHER JOSEPH GRANVILLE A KANSAS CITY MO NEWSLETTER PUNDIT TOLD SUBSCRIBERS YESTERDAY TO COVER SHORT POSITIONS THAT HE HAD RECOMMENDED THEY TAKE IN THE FIRST QUARTER IT IS VERY LATE RIGHT NOW TO DO ANY SELLING THAT IS BEST RESERVED FOR THE BOUNCE AHEAD SAID MR GRANVILLE DESPITE YESTERDAY'S STUNNING RALLY SOME WALL STREET ANALYSTS ARE ALSO WARNING INVESTORS THAT THE ROUGH TIMES AREN'T OVER GREG SMITH STOCK STRATEGIST AT PRUDENTIAL SECURITIES RECOMMENDED YESTERDAY THAT CLIENTS CUT THEIR EXPOSURE TO STOCKS BECAUSE OF UNCERTAIN FINANCIAL MARKET CONDITIONS MR SMITH TOLD INVESTORS IN HIS SMALL AGGRESSIVE MODEL TO CUT THEIR STOCK HOLDINGS TO 65 FROM 80 AT THE SAME TIME HE URGED INVESTORS TO RAISE CASH TO 20 FROM 10 AND BOOST FIXEDINCOME HOLDINGS TO 15 FROM 10 CHARLES CLOUGH STOCK STRATEGIST AT MERRILL LYNCH ALSO LIKES BONDS AT THESE PRICES MR CLOUGH ARGUES THAT THE RISE IN INTEREST RATES WILL SLOW THE ECONOMY DURING THE SUMMER PAVING THE WAY FOR LONGTERM BOND YIELDS TO DROP TO 65 TO 7 BUT THE SLOWER ECONOMY WON'T BE ALL THAT GREAT FOR STOCK BUYERS STOCKS MIGHT FIND IT A LITTLE TOUGHER GOING BECAUSE EARNINGS EXPECTATIONS ARE GOING TO BE MARKED DOWN IN THE MONTHS AHEAD SAID MR CLOUGH WHO THINKS THAT ALTHOUGH STOCKS MAY RALLY IN THE COMING WEEKS THE MARKET COULD REVISIT ITS RECENT LOWS SOMETIME THIS SUMMER ON THE NEW YORK STOCK EXCHANGE 2152 ISSUES ADVANCED AND 315 DECLINED BIG BOARD VOLUME TOTALED 365972000 SHARES UP FROM 342852000 MONDAY STOCK GROUPS THAT WERE THE STRONGEST DURING THE MARKET'S JANUARY RALLY ATTRACTED A LARGE SHARE OF THE BUYING YESTERDAY ECONOMICALLY SENSITIVE STOCKS WERE THE MOST VISIBLE LEADING THE ADVANCE OF THE DOW JONES INDUSTRIAL AVERAGE CATERPILLAR JUMPED 3 TO 116 1/4 UNITED TECHNOLOGIES 3 1/4 TO 65 1/2 UNION CARBIDE 2 1/4 TO 25 AND DUPONT 1 1/2 TO 54 1/8 SHARES OF THE BIG THREE US AUTO MAKERS POSTED SOLID GAINS GENERAL MOTORS ROSE 2 1/4 TO 57 1/4 FORD MOTOR 2 1/8 TO 60 7/8 AND CHRYSLER 2 7/8 TO 54 1/2 THE ECONOMICALLY SENSITIVE DOW JONES TRANSPORTATION AVERAGE ADVANCED 4017 OR 250 TO 164711 THE NINTHLARGEST ONEDAY RISE ON RECORD TECHNOLOGY STOCKS ANOTHER FORMERLY HIGHFLYING GROUP WERE STRONG MICROSOFT ROSE 3 1/4 TO 87 3/4 INTEL 1 1/2 TO 68 3/4 AND 3COM 1 7/8 TO 57 ALL ON NASDAQ ELSEWHERE TEXAS INSTRUMENTS INCREASED 2 TO 80 AND MICRON TECHNOLOGY ADDED 4 7/8 TO 91 1/8 AMONG COMMUNICATIONS TECHNOLOGY ISSUES WHICH ALSO WERE HOT EARLY THIS YEAR PACTEL JUMPED 2 1/4 TO 22 5/8 AND MOTOROLA GAINED 3 5/8 TO 104 5/8 ON NASDAQ NEXTEL COMMUNICATIONS ROSE 1 7/8 TO 40 7/8 AND NEWBRIDGE NETWORKS ADDED 4 3/4 TO 56 5/8 FINANCIALRELATED STOCKS AND UTILITIES SNAPPED BACK FROM THEIR WEAKNESS THE PERFORMANCE OF BOTH SEGMENTS IS CLOSELY LINKED TO THE DIRECTION OF BONDS INTEREST EXPENSES ARE IMPORTANT VARIABLES IN THE EARNINGS OF SUCH COMPANIES CITICORP JUMPED 1 1/4 TO 38 1/4 NATIONSBANK INCREASED 1 1/2 TO 46 1/4 AND MICHIGAN NATIONAL ADDED 1 3/8 TO 61 ON NASDAQ AMONG INSURERS GENERAL RE ROSE 1 1/8 TO 106 7/8 AND AETNA LIFE RALLIED 2 TO 52 IN THE BROKERAGE COMPANY GROUP CHARLES SCHWAB INCREASED 1 3/8 TO 27 1/4 AND MERRILL LYNCH ROSE 1 1/2 TO 37 1/4 THE DOW JONES UTILITIES AVERAGE WHICH HAS PLUMMETED ABOUT 20 SINCE LAST FALL INCREASED 501 OR 260 TO 19800 THE AVERAGE FINISHED MONDAY AT ITS LOWEST LEVEL SINCE AUG 24 1990 WOOLWORTH ROSE 1 3/4 TO 14 3/4 AFTER SEVERAL LOSING SESSIONS THE STOCK TUMBLED AFTER THE NEW YORK RETAILER SAID IT HAD BEGUN AN INVESTIGATION INTO ALLEGED ACCOUNTING IRREGULARITIES ON MONDAY THE COMPANY SAID TWO TOP OFFICERS WOULD STEP DOWN TEMPORARILY THEY HAVE DENIED ANY WRONGDOING WOOLWORTH WAS AT 18 A WEEK AGO CUMMINS ENGINE SURGED 2 5/8 TO 51 3/4 AFTER THE DIESEL ENGINE PRODUCER ESTIMATED ITS FIRSTQUARTER EARNINGS WILL MEET OR EXCEED ITS FOURTHQUARTER RESULTS IT HAD A PROFIT OF 126 A SHARE IN THE FOURTH PERIOD INCLUDING A 16CENT CHARGE AMERICAN EXPRESS INCREASED 1 3/8 TO 28 5/8 THE FINANCIAL SERVICES CONCERN DISCLOSED DETAILS ABOUT THE PLANNED SPINOFF OF ITS LEHMAN BROTHERS SECURITIES BROKERAGE AND INVESTMENT BANKING UNIT 9404060004 940406 AT&T'S MCCAW PURCHASE FACES HURDLE BUT APPROVAL STILL POSSIBLE JUDGE SAYS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL JUDGE SAID AMERICAN TELEPHONE & TELEGRAPH CO HASN'T YET PERSUADED HIM TO APPROVE ITS PROPOSED ACQUISITION OF MCCAW CELLULAR COMMUNICATIONS CORP BUT HE SUGGESTED THAT HE STILL MAY CLEAR THE DEAL LATER US DISTRICT JUDGE HAROLD GREENE SAID AT&T'S PLAN TO BUY MCCAW INCLUDING CELLULAR PROPERTIES JOINTLY OWNED BY MCCAW AND SOME OF THE REGIONAL BELL TELEPHONE COMPANIES WOULD VIOLATE THE 1982 CONSENT DECREE THAT BROKE UP THE BELL SYSTEM ACCORDING TO JUDGE GREENE THE CONSENT DECREE BARS AT&T FROM ACQUIRING THE STOCK OR ASSETS OF ANY BELL COMPANY AT&T HAD ARGUED THAT THE DECREE PREVENTED IT ONLY FROM ACQUIRING ASSETS THAT HAD BEEN DIVESTED IN THE 1984 BELL SYSTEM BREAKUP BUT JUDGE GREENE WHO OVERSEES THE CONSENT DECREE NOTED THAT THE DECREE COULD BE MODIFIED SO THAT AT&T COULD COMPLETE THE ACQUISITION HE SAID THAT AT&T MUST SHOW THAT THE ACQUISITION OF THE JOINTLY OWNED PROPERTIES INCLUDING CELLULAR NETWORKS IN LOS ANGELES AND SAN DIEGO WOULD BE IN THE PUBLIC INTEREST AND THAT CIRCUMSTANCES OR THE LAW IN THE TELECOMMUNICATIONS ARENA HAVE CHANGED SINCE THE DECREE WAS SIGNED AT&T SAID IT WAS PLEASED WITH THE DECISION JUDGE GREENE LEFT THE DOOR WIDE OPEN TO US TO DEMONSTRATE WHY SUCH A WAIVER IS IN THE PUBLIC INTEREST THE COMPANY SAID IN A STATEMENT WE ARE GOING TO MOVE QUICKLY TO STATE OUR CASE WE ARE CONFIDENT THAT WE CAN WIN A WAIVER ON THE MERITS AND COMPLETE THE MERGER ON SCHEDULE A MCCAW SPOKESMAN SAID THAT THE TRANSACTION HAS A TIME LIMIT OF SEPT 30 AND WE KNOW AT&T WILL AGGRESSIVELY PURSUE GETTING THIS DEAL DONE BUT KENNETH LEON AN ANALYST WITH LEHMAN BROTHERS INC SAID JUDGE GREENE'S DECISION CREATES INVESTMENT UNCERTAINTY EVEN THOUGH WE THINK THERE MAY BE SOME LEGAL REMEDY AND HE ADDED UNLESS THERE IS FEDERAL LEGISLATION THIS COULD BECOME A MESS IN TERMS OF LEGAL FILINGS WILLIAM B BARFIELD BELLSOUTH CORP ASSOCIATE GENERAL COUNSEL SAID HIS COMPANY ON BALANCE WAS PLEASED WITH THE DECISION BECAUSE IT COULD MAKE IT EASIER FOR BABY BELLS TO HAVE RESTRICTIONS ON THEIR BUSINESSES LIFTED THE ATLANTABASED BABY BELL FIRST RAISED QUESTIONS ABOUT THE AT&T ACQUISITION OF MCCAW LAST DECEMBER IN THE 25PAGE OPINION AND ORDER JUDGE GREENE WARNED THAT USING THAT LEGAL STANDARD SHOULD NOT BE VIEWED AS OPENING A MODIFICATION OR WAIVER FLOODGATE BUT THE REGIONAL BELL COMPANIES BELIEVE THE DECISION COULD GIVE THEM A NEW LEGAL FRAMEWORK TO ARGUE FOR PERMISSION TO ENTER NEW LINES OF BUSINESS WHAT AT&T HAS TO DO IS DEMONSTRATE THAT CIRCUMSTANCES IN OUR INDUSTRY HAVE CHANGED MR BARFIELD SAID THAT'S WHAT WE HAVE BEEN TELLING AT&T AND THE COURT FOR YEARS BELLSOUTH MR BARFIELD SAID IS WILLING TO HELP AT&T SHOW JUST HOW MUCH THE TELECOMMUNICATIONS INDUSTRY HAS CHANGED IN THE PAST DECADE WE'RE PLEASED THIS WILL ADVANCE THE ISSUES TO A NEW LEVEL HE SAID BUT JUDGE GREENE'S DECISION WASN'T AN OVERALL VICTORY FOR THE SEVEN BABY BELLS THE JUDGE REJECTED BELLSOUTH'S ARGUMENT THAT IF THE AT&TMCCAW DEAL IS PERMITTED THE REGIONAL TELEPHONE COMPANIES SHOULD BE ALLOWED TO HANDLE LONGDISTANCE CALLS ON THEIR CELLULAR NETWORKS ASIDE FROM THE COURT REVIEW THE JUSTICE DEPARTMENT ALSO IS EXAMINING THE AT&TMCCAW COMBINATION JUDGE GREENE TOOK NOTE OF THE JUSTICE DEPARTMENT REVIEW AND STRESSED THAT HIS ACTION IS IN NO WAY INTENDED TO EXPRESS ANY OPINION WITH RESPECT TO THE PROPRIETY OR LEGALITY OF THE PROPOSED MERGER UNDER THE ANTITRUST LAWS THEMSELVES 9404060003 940406 TECHNOLOGY & HEALTH SOME CRAYON BRANDS ARE RECALLED BY US CITING LEAD LEVELS WASHINGTON THE GOVERNMENT ANNOUNCED A RECALL OF SEVERAL BRANDS OF IMPORTED CRAYONS CONTAINING LEAD LEVELS THAT COULD BE HAZARDOUS TO CHILDREN WHO MIGHT CHEW ON THEM SOME OF THE BRANDS RECALLED INCLUDING ONE SOLD BY THE BIG TOY CHAIN TOYS R US INC CONTAIN ENOUGH LEAD TO PRESENT A POISONING HAZARD TO YOUNG CHILDREN SAID ANN BROWN CONSUMER PRODUCT SAFETY COMMISSION CHAIRWOMAN THE CRAYONS WERE MADE IN CHINA THE MOST HAZARDOUS CRAYONS ARE SAFE 48 NONTOXIC I'M A TOYS R US KID CRAYONS 12 JUMBO CRAYONS DISTRIBUTED BY CONCORD ENTERPRISES OF LOS ANGELES AND 12 CRAYONS GLORY AND 18 CRAYONS THAT PAINT DISTRIBUTED BY GLORY STATIONERY MANUFACTURING CO OF LOS ANGELES TEST RESULTS FOR THE REMAINING BRANDS PUT THEM ON THE THRESHOLD LEVEL FOR LEAD POISONING THE CPSC ADVISES PARENTS TO BUY CRAYONS AND OTHER ART SUPPLIES THAT ARE LABELED CONFORMS TO ASTM D4236 WHICH MEANS THE PRODUCT HAS PASSED A TOXICOLOGIST TEST FOR LEAD LEVELS THE COMMISSION SAID THE GLORY CRAYONS IT TESTED CARRIED SUCH A LABEL BUT AFTER THE CPSC'S REVIEW WERE FOUND NOT TO MERIT THE LABEL PETER WU THE COMPANY'S US GENERAL MANAGER SAID GLORY HAD SENT THE COMMISSION SAMPLES BUT DIDN'T EXPECT THEM TO MEET FEDERAL GUIDELINES OR PORTRAY THEM AS SUCH TOYS R US DID NOT RESPOND TO REQUESTS FOR COMMENT CONCORD COULDN'T BE REACHED KEN GILES A CPSC SPOKESMAN SAID IT IS UNLIKELY THAT THERE WILL BE ANY FEES LEVIED ON THE CRAYON COMPANIES WHICH HE SAID ARE VOLUNTARILY RECALLING THEIR PRODUCTS THE CPSC SUGGESTED THAT PARENTS EITHER THROW OUT THESE PARTICULAR CRAYONS OR TAKE THEM BACK TO THE STORE FOR A REFUND 9404060002 940406 BUSINESS BRIEF UNITED STEELWORKERS UNION TERMINATES ALLEGHENY LUDLUM STRIKE NEGOTIATIONS PITTSBURGH THE UNITED STEELWORKERS UNION BROKE OFF TALKS WITH ALLEGHENY LUDLUM CORP AIMED AT ENDING A FIVEDAY STRIKE SAYING THE STAINLESSSTEEL MAKER IS STONEWALLING THE BASIS FOR THE BREAKDOWN IS THE COMPANY'S STUBBORN REFUSAL TO MEET US HALFWAY ON FUNDAMENTAL ISSUES THAT EVERY MAJOR STEEL COMPANY HAS AGREED TO THE UNION SAID IN A STATEMENT SOME OF THESE ISSUES ARE EMPLOYMENT SECURITY REVITALIZATION OF THE MAINTENANCE FORCES AND WORKER INVOLVEMENT IN KEY DECISIONS AFFECTING THEIR FUTURE AND THE QUALITY OF WORK LIFE THE USW SAID THE TWO SIDES REMAIN FAR APART ON WAGES PENSIONS FUNDING FOR RETIREE INSURANCE AND CONTRACT LENGTH IN A STATEMENT ROBERT P BOZZONE ALLEGHENY LUDLUM'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID WE FEEL STRONGLY ABOUT MANAGEMENT RIGHTS AND OUR RESPONSIBILITY TO PROTECT THE BEST INTERESTS OF OUR EMPLOYEES SHAREHOLDERS AND CUSTOMERS MR BOZZONE SAID THE COMPANY OPPOSES UNION DEMANDS FOR A CORPORATE BOARD SEAT AND INVOLVEMENT IN CAPITAL SPENDING DECISIONS LABELING THEM UNION INTRUSION INTO AREAS WHICH ARE CLEARLY THE RESPONSIBILITY OF SENIOR MANAGEMENT AND THE BOARD OF DIRECTORS WE HAVE OFFERED A NEGOTIABLE PACKAGE SIMILAR TO THAT WHICH OTHER STEELWORKERS HAVE ACCEPTED WHICH INCLUDES INCREASED WAGES IMPROVED MEDICAL BENEFITS IMPROVED PENSION BENEFITS AND IMPROVEMENTS IN QUALITY OF LIFE ISSUES WHICH ADDRESS VACATION AND CYCLE TIME WORK SCHEDULING MR BOZZONE SAID IN ITS STATEMENT ALLEGHENY LUDLUM ACKNOWLEDGED THE STRIKE WOULD HAVE A FINANCIAL IMPACT BUT SAID IT WAS TOO EARLY TO SPECIFY AN AMOUNT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ALLEGHENY LUDLUM FELL 125 CENTS TO 1850 A SHARE THE STRIKE WHICH INVOLVES ABOUT 3500 WORKERS BEGAN LAST FRIDAY JUST AFTER MIDNIGHT AFTER THE PREVIOUS CONTRACT EXPIRED 9404060001 940406 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION KINDERCARE LEARNING CENTERS INC AN OFFERING OF 150 MILLION OF SENIOR NOTES MEDAR INC AN OFFERING OF 13 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION OF 195000 SHARES VIA PACIFIC GROWTH EQUITIES NORTHERN BORDER PARTNERS LP A SHELF OFFERING OF 3461500 COMMON UNITS REPRESENTING LIMITED PARTNERSHIP INTERESTS VIA GOLDMAN SACHS & CO AND AG EDWARDS & SONS INC 9404060028 940330 LETTERS TO THE EDITOR THE RIP VAN WINKLE OF PSYCHIATRY DR YALE KRAMER'S MARCH 9 EDITORIALPAGE PIECE SCHIZOPHRENIA AND PSYCHIATRY'S LIMITS DOES A GREAT DISSERVICE TO THE MENTALLY ILL TO HIS OWN PROFESSION PSYCHOANALYSIS AND TO THE PUBLIC AN ENGAGING WRITING STYLE CANNOT OBSCURE THE CONFUSION AND FACTUAL ERRORS THAT RUN THROUGH DR KRAMER'S ARTICLE HIS VIEWS ON THE DIAGNOSIS AND TREATMENT OF MENTAL ILLNESS HARK BACK TO THE PREVAILING WISDOM OF A GENERATION AGO BEFORE THE SCIENTIFIC REVOLUTION IN PSYCHIATRY TWO DECADES OF RESEARCH HAVE ESTABLISHED THAT THE MAJOR MENTAL ILLNESSES CAN BE DIAGNOSED ACCURATELY AND FOR THE MOST PART TREATED EFFECTIVELY HIS ESSAY SEEMS LOCKED IN THE PAST IN ANOTHER WAY TOO WHEN HE CONFUSES A FAILED 30YEAROLD POLICY DEINSTITUTIONALIZATION WITH CONTEMPORARY PSYCHIATRIC PRACTICES LET ME BE SPECIFIC DR KRAMER FEELS BEDEVILED BY DIAGNOSTIC AMBIGUITY BUT IN FACT DIAGNOSTIC RELIABILITY IN PSYCHIATRY THE LIKELIHOOD THAT MULTIPLE INDEPENDENT OBSERVERS WILL ARRIVE AT THE SAME DIAGNOSIS IS EQUAL TO OR BETTER THAN MOST DIAGNOSES IN MEDICINE BY WAY OF EXAMPLE DR KRAMER LAMENTS THAT HE DOESN'T KNOW WHERE TO DRAW THE LINE BETWEEN CLINICAL DEPRESSION AND NORMAL MOODS IN FACT MOST PSYCHIATRISTS DO THAT EVERY DAY AND RESEARCH SHOWS THEY CAN DO IT QUITE ACCURATELY IN MOST CASES THAT IS WHEN MULTIPLE CLINICIANS ARE ASKED TO DIAGNOSE A GIVEN PATIENT THEY WILL AGREE ON WHERE TO DRAW THE LINE ABOUT 80 OF THE TIME IN SAYING THAT IT'S DIFFICULT TO PROVE THE EFFECTIVENESS OF TREATMENT DR KRAMER SEEMS UNAWARE OF DECADES OF TREATMENT RESEARCH IN FACT THE EFFECTIVENESS OF MODERN TREATMENTS FOR MENTAL DISORDERS SPECIFIC MEDICATIONS SHORTTERM PSYCHOTHERAPIES AND COMBINATIONS HAVE BEEN EVALUATED IN HUNDREDS OF CONTROLLED STUDIES WHICH ARE AS WELLDESIGNED AND SCIENTIFIC AS ANY IN MEDICINE THESE STUDIES SHOW SUCCESS RATES IN THE 60 TO 80 RANGE FOR THE FIVE SERIOUS MAJOR MENTAL ILLNESSES WHICH COMPARES FAVORABLY TO THE APPROXIMATELY 50 SUCCESS RATE FOR THREE WIDELY USED AND REIMBURSED TREATMENTS FOR CARDIOVASCULAR DISORDERS ARTHRECTOMY ANGIOPLASTY AND ANTIHYPERTENSIVE MEDICATION WITH RESPECT TO HIS IMPLICATION THAT THE COST OF TREATING MENTAL DISORDERS IS HIGHER THAN THAT FOR PHYSICAL DISORDERS OUR RESEARCH INDICATES THAT MODERN TREATMENTS FOR SERIOUS MENTAL DISORDERS ARE INDEED COSTEFFECTIVE FOR EXAMPLE CAREFUL ECONOMETRIC ANALYSIS SHOWS THAT PROVIDING EQUITABLE COVERAGE FOR TREATMENT OF THE 28 OF THE POPULATION WITH SEVERE MENTAL ILLNESS WOULD SAVE AN ESTIMATED 22 BILLION A YEAR IN INDIRECT COSTS AND THAT DOES NOT EVEN INCLUDE THE SAVINGS IN FEDERAL DISABILITY PAYMENTS TO THE SEVERELY MENTALLY ILL NOW TOTALING ABOUT 14 BILLION A YEAR FINALLY DR KRAMER SEEMS TO BE SAYING THAT HEALTH CARE COVERAGE FOR MENTAL ILLNESS EVEN SEVERE MENTAL ILLNESS MUST WAIT UNTIL CURES ARE FOUND WOULD ANYONE DARE APPLY THAT STANDARD TO THE TREATMENT OF SCORES OF MEDICAL ILLNESSES FOR WHICH TODAY'S TREATMENTS ARE AT BEST PALLIATIVE SHOULD COVERAGE FOR THE TREATMENT OF CANCER OR MULTIPLE SCLEROSIS BE WITHHELD UNTIL A CURE IS FOUND GETTING RID OF THIS GLARING DOUBLE STANDARD IS WHAT MRS GORE MRS FORD AND MRS CARTER HAVE BEEN TALKING ABOUT WHERE HAS DR KRAMER BEEN IN HIS ARTICLE HE EMERGES RIP VAN WINKLELIKE APPLYING A PHILOSOPHY OF THE 1950S AND '60S TO A MAJOR NATIONAL HEALTH ISSUE OF THE 1990S WHILE IGNORING ALL THE SCIENTIFIC AND CLINICAL ADVANCES IN BETWEEN FOR PEOPLE WHO SUFFER FROM SCHIZOPHRENIA AND THEIR FAMILIES DR KRAMER'S STATEMENT IS A STIGMATIZING REINFORCEMENT OF OUTMODED STEREOTYPES HE SUGGESTS THAT TREATMENT FOR MENTAL ILLNESSES SHOULD NOT BE INCLUDED IN NATIONAL HEALTH SYSTEMS REFORM BECAUSE WE DO NOT FULLY UNDERSTAND THE CAUSE OF THESE ILLNESSES AND THEREFORE CANNOT ACCURATELY DIAGNOSE AND CURE THEM WE BELIEVE HIS ARGUMENT IS FLAWED IN TWO WAYS FIRST HEALTH INSURANCE COVERAGE HAS NEVER BEEN LIMITED ONLY TO ILLNESSES FOR WHICH THERE IS A CLEAR UNDERSTANDING OF CAUSE AND WHICH CAN BE CURED WOULD HE APPLY THE SAME STANDARD TO CERTAIN FORMS OF CANCER ARTHRITIS DIABETES MULTIPLE SCLEROSIS CYSTIC FIBROSIS EPILEPSY PARKINSON'S DISEASE PSORIASIS AND DOZENS OF OTHER MEDICAL ILLNESSES SECOND HIS STATEMENTS ABOUT THE DIAGNOSIS AND TREATMENT OF SCHIZOPHRENIA AND OTHER ILLNESSES ARE OUT OF DATE MISLEADING AND NEEDLESSLY PESSIMISTIC THERE IS NOTHING AMBIGUOUS ABOUT SEVERE MENTAL ILLNESSES THEIR PSYCHIATRIC DIAGNOSIS IS RELIABLE AND MOST PSYCHIATRISTS ROUTINELY USE THE APA'S DIAGNOSTIC AND STATISTICAL MANUAL STUDIES SHOW THAT DIFFERENT PSYCHIATRISTS EVALUATING THE SAME PATIENT WITH A SEVERE DISORDER SUCH AS SCHIZOPHRENIA WILL AGREE ON THE DIAGNOSIS WITH THE SAME RELIABILITY AS OTHER PHYSICIANS AGREE ON THE DIAGNOSIS OF OTHER MEDICAL ILLNESSES DR KRAMER'S PESSIMISTIC AND OUTDATED VIEW THAT BECAUSE PEOPLE WITH SCHIZOPHRENIA CANNOT BE CURED IN THE MEDICAL SENSE THEY SHOULD BE WRITTEN OFF AS AN EXPENSIVE SOCIAL PROBLEM WORTHY ONLY OF HUMANE SHELTERING YET WE AS FAMILIES AND PHYSICIANS KNOW THAT THERE ARE THOUSANDS OF PEOPLE WITH SCHIZOPHRENIA WHO HAVE GRADUATED FROM COLLEGE AND HOLD TAXPAYING JOBS THANKS TO STATEOFTHEART MEDICAL CARE AND COMMUNITYBASED REHABILITATION PROGRAMS SUCH AS FOUNTAIN HOUSE IN NEW YORK CITY SCHIZOPHRENIA MAJOR DEPRESSION MANICDEPRESSION PANIC DISORDER OBSESSIVECOMPULSIVE DISORDER AND OTHER SEVERE ILLNESSES ARE REAL THEY CAUSE GREAT PAIN AND SUFFERING THEY CAN BE TREATED EFFECTIVELY AND PEOPLE SUFFERING THEM DESERVE THE SAME DEGREE OF INSURANCE COVERAGE AS PERSONS WITH OTHER MEDICAL ILLNESSES WHILE DR KRAMER CORRECTLY DETAILED THE 3 BILLION COST OF DEINSTITUTIONALIZATION RESIDENTS IN MY UPPER WEST SIDE NEIGHBORHOOD IN NEW YORK CITY COULD OFFER FURTHER INSIGHTS INTO THE COST AND THE DEVASTATING IMPACT OF THE COMMUNITY MENTAL HEALTH CENTER ACT SIMPLY PUT OUR NEIGHBORHOOD HAS BEEN HELD HOSTAGE BY AN EXTRAORDINARILY LARGE POPULATION OF MENTALLY ILL HOMELESS PEOPLE CREATED BY AN INORDINATE NUMBER OF OUTPATIENT FACILITIES AND TREATMENT CENTERS THEIR PRESENCE HAS GIVEN NEW MEANING TO THE TERM URBAN NIGHTMARE A SIMPLE VISIT TO THE LOCAL ELEMENTARY SCHOOL POST OFFICE OR GROCERY STORE FOR INSTANCE CAN BE A DANTEAN JOURNEY THROUGH THE DARK UNDERSIDE OF OUR SOCIETY VIOLENCE HARASSMENT AND AN ASTONISHING LIST OF ANTISOCIAL BEHAVIORS ARE COMMONPLACE ONE INDIVIDUAL EARNED A SADLY ACCURATE SOBRIQUET AS THE MAD MAN OF 96TH STREET AND HIS CASE CHRONICLED ON 60 MINUTES SYMBOLIZES THE FAILURE OF THE COMMUNITY MENTAL HEALTH CENTER ACT IN ADDITION IT ILLUSTRATES THE SHOCKING DISINTEREST OF LOCAL POLITICIANS OSTENSIBLY ELECTED TO SERVE AND PROTECT OUR COMMUNITY ALSO IN DIRECT CONFLICT WITH THEIR SALARIED POSITIONS MANY KEY OFFICERS AND EMPLOYEES OF SOCIALSERVICE ORGANIZATIONS SIT ON COMMUNITY BOARDS AND CITY COUNCILS THAT MAKE DECISIONS AS TO WHERE AND HOW THEIR OWN AGENCIES RECEIVE GOVERNMENT FUNDS AND SITE PROGRAMS ACCORDING TO DR KRAMER PSYCHIATRIC DISORDERS SUCH AS SCHIZOPHRENIA AND PARANOID SOCIOPATHY ARE FREQUENTLY MISDIAGNOSED MISUNDERSTOOD AND NOT EASILY CURED EVEN UNDER THE BEST OF CIRCUMSTANCES IN LIGHT OF THIS THE PLACEMENT OF POTENTIALLY DANGEROUS PATIENTS INTO COMMUNITYBASED FACILITIES SHOULD BE IMMEDIATELY REEVALUATED PARTICULARLY THE MISGUIDED BELIEF THAT PEOPLE WHO SUFFER THESE DEBILITATING ILLNESSES ARE STILL SOMEHOW ABLE TO GUIDE THEIR OWN THERAPY AND DECIDE WHETHER OR NOT TO FOLLOW THEIR PRESCRIBED MEDICAL PROTOCOL AND WHETHER OR NOT TO ATTEND PROGRAMS DESIGNED TO HELP THEM COPE WITH THEIR ILLNESSES DR KRAMER WAS CORRECT IN STATING THAT THE 1963 COMMUNITY MENTAL HEALTH CENTERS ACT HAS BEEN A FAILURE BUT NOT AS HE IMPLIED BECAUSE PEOPLE WITH SERIOUS MENTAL ILLNESS ARE INCAPABLE OF LIVING IN THE COMMUNITY JOHN F KENNEDY'S VISION FAILED BECAUSE TOO FEW CENTERS 789 INSTEAD OF 2000 WERE CREATED AND THOSE THAT DID OPEN LARGELY IGNORED THOSE WITH SERIOUS ILLNESSES AND WOUND UP SERVING AS MULTIPURPOSE FAMILY SERVICE CENTERS INSTEAD SOME OF THE 3 BILLION FUNNELED TO THESE PROGRAMS WENT TO PAY FOR SWIMMING POOLS AND TENNIS COURTS FOLLOWUP STUDIES FOUND THAT ONLY 5 OF THE CENTERS WERE SERVING THOSE TARGETED BY THE ORIGINAL LEGISLATION OUR 45 YEARS OF EXPERIENCE IN WORKING WITH PEOPLE WITH MAJOR MENTAL ILLNESS HAS SHOWN THAT WITH APPROPRIATE HOUSING MEDICATION AND SUPPORT THE VAST MAJORITY OF THIS POPULATION NO MATTER WHAT THE SPECIFIC DIAGNOSIS CAN LIVE DIGNIFIED INDEPENDENT AND PRODUCTIVE LIVES IN THE COMMUNITY THIS DOES NOT MEAN A LIFE OF QUIET DESPERATION BUT A FULFILLING LIFE MEMBERS OF FOUNTAIN HOUSE LIVE AND WORK IN NEW YORK CITY WHICH INCLUDES JOBS AT THE WALL STREET JOURNAL IN THE MARCH 30 LETTERS TO THE EDITOR LAURIE FLYNN IS MISIDENTIFIED SHE IS EXECUTIVE DIRECTOR OF THE NATIONAL ALLIANCE FOR THE MENTALLY ILL BASED IN ARLINGTON VA 9404060027 940323 TEXAS JOURNAL LET'S SEE IF YOU CAN REDUCE THE SALARY OF THE GOVERNOR BY BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL STATE COMPTROLLER JOHN SHARP MAY GRAB ALL THE HEADLINES WHEN IT COMES TO CUTTING THE COST OF STATE GOVERNMENT BUT AN OBSCURE STATE AGENCY CONTINUES CHIPPING AWAY WITH AN UPDATED VERSION OF THE OLD SUGGESTION BOX FISCAL 1993 WAS A BANNER YEAR FOR THE SOCALLED TEXAS INCENTIVE AND PRODUCTIVITY COMMISSION CREATED FOUR YEARS AGO WHICH PAYS STATE EMPLOYEES FOR IDEAS THAT WILL CUT COSTS BOOST REVENUE OR IMPROVE SERVICES IN FISCAL 1993 THE COMMISSION APPROVED IDEAS EXPECTED TO SAVE ABOUT 11 MILLION ANNUALLY MORE THAN TRIPLE THE YEAREARLIER AMOUNT IN THE LATEST YEAR 42 STATE EMPLOYEES RECEIVED 61000 IN BONUSES EMPLOYEES RECEIVE A ONETIME PAYMENT OF 10 OF AN IDEA'S ESTIMATED ANNUAL SAVINGS TO A MAXIMUM OF 5000 ONE EDUCATION DEPARTMENT EMPLOYEE GOT 2148 FOR SUGGESTING THAT THE DEPARTMENT CHARGE FOR POSTAGE WHEN DISTRIBUTING CERTAIN MAILORDER CASSETTES A CORRECTIONS OFFICER GOT 5000 FOR COMING UP WITH A 42CENT WASHERANDBOLT COMBINATION EXPECTED TO SAVE 77000 A YEAR IN BROKEN MOP BUCKETS NOT ALL IDEAS WERE WINNERS ONE WOULDBE INNOVATOR SUGGESTED THAT THE STATE COULD REALIZE MASSIVE OVERHEAD SAVINGS BY MOVING ALL OF ITS 250000 EMPLOYEES INTO A SINGLE BUILDING BUT IMAGINE PROVIDING PARKING FOR THAT MANY PEOPLE SAYS ELAINE POWELL THE COMMISSION'S EXECUTIVE DIRECTOR IT WOULD REALLY BE A NIGHTMARE SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR ANOTHER IDEA FOR SAVING MONEY WSJ APRIL 6 1994 9403230115 YY94 MM04 9404060026 940318 REVIEW & OUTLOOK EDITORIAL HIT THE BOOKS THOSE WHO THINK IMMIGRANTS ARE A THREAT TO THE AMERICAN WAY OF LIFE MIGHT TAKE A LOOK AT A RECENT STUDY ON HOW THE CHILDREN OF IMMIGRANTS PERFORM IN SCHOOL SEEMS THEY'VE ADOPTED AN OLDFASHIONED WAY OF LIFE THAT A LOT OF AMERICANS HAVE ABANDONED IT'S CALLED AFTERSCHOOL HOMEWORK IT SHOULD COME AS LITTLE SURPRISE TO LEARN THAT IMMIGRANT CHILDREN OUTPERFORM THEIR AMERICAN CLASSMATES IT SHOULD ALSO COME AS LITTLE SURPRISE TO LEARN THAT THE MAIN REASON IS THAT LIKE THEIR PARENTS THEY WORK HARD RUBEN RUMBAUT OF MICHIGAN STATE UNIVERSITY AND ALEJANDRO PORTES OF JOHNS HOPKINS RESEARCHED THE HOMEWORK HABITS OF THE CHILDREN OF IMMIGRANTS FROM 77 COUNTRIES PRESENTING THEIR FINDINGS LAST MONTH AT THE ANNUAL MEETING OF THE AMERICAN ASSOCIATION FOR THE ADVANCEMENT OF SCIENCE THEY FOUND THAT IMMIGRANT CHILDREN IN THE EIGHTH AND NINTH GRADES DEVOTE BETWEEN TWO AND THREE HOURS A DAY TO HOMEWORK BY CONTRAST AMERICAN EIGHTH AND NINTHGRADERS AVERAGE LESS THAN AN HOUR A DAY ON HOMEWORK AS THE TABLE SHOWS THERE IS A DIRECT COROLLATION BETWEEN THE TIME AN IMMIGRANT CHILD SPENDS ON HOMEWORK AND HIS GRADE POINT AVERAGE THE STUDY FOUND THAT BOYS AND GIRLS WHO STUDY LESS THAN AN HOUR A DAY CONSISTENTLY EARN GRADES OF C OR LOWER WHILE THOSE WHO DEVOTE MORE THAN THREE HOURS A DAY TO HOMEWORK EARN BS OR BETTER THE IMMIGRANT CHILDREN WITH THE HIGHEST GRADE POINT AVERAGES THE VIETNAMESE ALSO SPENT THE LONGEST AMOUNT OF TIME ON HOMEWORK RECENTLY ARRIVED CHILDREN SPEND MORE HOURS ON THEIR STUDIES THAN DO USBORN CHILDREN OF IMMIGRANTS A FINDING THAT PROMPTS PROF RUMBAUT TO NOTE THE LONGER YOU ARE IN THE UNITED STATES THE MORE YOU LEARN AMONG OTHER THINGS THE BAD HABITS SUCH AS WEARING HEADPHONES WHILE STUDYING OR WAITING TO THE LAST MINUTE TO STUDY FOR A TEST THIS IS ONE KIND OF AMERICANIZATION IMMIGRANTS OR ANYONE WOULD BE BETTER OFF WITHOUT THERE ARE OTHER REASONS BESIDES HARD WORK FOR THE SCHOLASTIC SUCCESS OF IMMIGRANT CHILDREN ONE IS HELP WITH THEIR SCHOOL TASKS THE RUMBAUTPORTES STUDY FOUND THAT THREEQUARTERS OF IMMIGRANT CHILDREN RECEIVE ASSISTANCE WITH THEIR STUDIES MOSTLY FROM THEIR FAMILIES IT ALSO DISCOVERED THAT THE CHILDREN WHO PERFORM BEST TEND TO COME FROM HOMES WHERE BOTH THE MOTHER AND FATHER ARE PRESENT AND THAT THEY HAVE CLOSE FRIENDS WHO ARE LIKE THEM THE CHILDREN OF IMMIGRANTS IN OTHER WORDS HIGH ACADEMIC PERFORMANCE IS LINKED TO STRONG TIES WITH FAMILY AND COMMUNITY ALL THIS SOUNDS LIKE COMMON SENSE BOYS AND GIRLS IMBUED WITH THESE VALUES WILL GROW UP TO BE PRODUCTIVE CITIZENS WHETHER THEIR PARENTS ARE KOREANBORN SHOPKEEPERS OR RUSSIANBORN TAXI DRIVERS IN FACT IT WOULD SEEM THAT THE IMMIGRANTS HAVE SOME THINGS TO TEACH OTHER ABOUTTOBE MEMBERS OF THE AMERICAN WORK FORCE SEE RELATED LETTER LETTERS TO THE EDITOR HOMEWORK AT HOME HEY NOT IN AMERICA WSJ APRIL 6 1994 9403180064 YY94 MM04 9404060025 940316 TEXAS JOURNAL STARTUP WANTS TO CLEAN UP AT THE BORDER BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL ENVIRONMENTAL MANAGEMENT CORP HAS A PLAN TO CASH IN ON MEXICO'S ENVIRONMENTAL BOOM BUT NOT MUCH ELSE THE SAN ANTONIO COMPANY WHICH IS RAISING STARTUP FUNDS WITH A STOCK OFFERING AVAILABLE ONLY TO TEXAS INVESTORS HAS NO OPERATING REVENUE ITS SIXMEMBER STAFF INCLUDES NO PRACTICING CIVIL ENGINEERS OR ENVIRONMENTAL SCIENTISTS EMPLOYEES MAINLY SPEND THEIR TIME HAWKING ITS STOCK IT HAS NO ENGINEERING OR CONSULTING CONTRACTS IN EITHER MEXICO OR THE US ENVIRONMENTAL MANAGEMENT IS SELLING A DREAM THAT IS BECOMING INCREASINGLY FAMILIAR IN TEXAS CASHING IN ON THE OPPORTUNITIES IN CLEANING UP ENVIRONMENTAL PROBLEMS ON BOTH SIDES OF THE TEXASMEXICO BORDER DRAWING ON ATTENTION GENERATED BY THE NORTH AMERICAN FREE TRADE AGREEMENT THE COMPANY HOPES TO RAISE AT LEAST 1 MILLION TO CREATE A DIVERSIFIED ENVIRONMENTALSERVICES COMPANY WITH A LARGE PRESENCE IN MEXICO IT IS A RISKY VENTURE THAT POINTS UP THE PITFALLS OF THE BUSINESS FOR THE OPPORTUNITIES AREN'T UNLIMITED AND ENVIRONMENTAL MANAGEMENT ISN'T ALONE THE BORDER REGION ALREADY IS FLOODED WITH ENVIRONMENTAL COMPANIES THAT HAVE CAPITAL EXPERIENCE AND CONTACTS ALONG WITH MORE SPECULATIVE FIRMS HAVING NONE OF THOSE ADVANTAGES EVERYBODY THINKS THAT EVERYBODY STRIKES IT RICH BUT YOU GET THERE AND FIND OUT THAT ISN'T THE CASE SAYS PAUL ZOFNASS PRESIDENT OF ENVIRONMENTAL FINANCIAL CONSULTANTS GROUP INC A NEW YORK CONSULTING FIRM HE SAYS MEXICO IS ALREADY ATTRACTING SCORES OF SMALL COMPANIES TRYING TO GET A PIECE OF THE GROWTH BUT 98 OF THEM WILL PROBABLY NOT BE SUCCESSFUL ENVIRONMENTAL MANAGEMENT'S BUSINESS PLAN DOESN'T LOOK JUST TO MEXICO WHERE IT ENVISIONS A MONTERREYBASED ENVIRONMENTAL LABORATORY AND CONSULTING BUSINESS COMPANY OFFICIALS ALSO PLAN TO ACQUIRE TEXAS ENVIRONMENTAL BUSINESSES AND THEY RECENTLY SIGNED A LETTER OF INTENT TO BUY CLEAN ENVIRONMENTS INC A SMALL HOUSTON COMPANY THAT PROVIDES ASBESTOS MANAGEMENT INDOORAIRQUALITY EVALUATIONS AND OTHER ENVIRONMENTAL SERVICES BUT MEXICO AND THE BORDER ARE CENTRAL TO THE COMPANY'S PITCH ESPECIALLY AFTER NAFTA'S PASSAGE PEOPLE ARE AWARE THAT THE ENVIRONMENTAL AREA IS ON THE UPSWING SAYS GARY ZINTGRAFF ENVIRONMENTAL MANAGEMENT'S PRESIDENT IT'S ABSOLUTELY THE RIGHT TIME MR ZINTGRAFF ENVISIONS ENVIRONMENTAL MANAGEMENT AS A HOLDING COMPANY WITH A RANGE OF BUSINESSES ASSEMBLED MAINLY BY ACQUISITION FROM MANUFACTURING WASTETREATMENT PLANTS TO PROVIDING TRAINING FOR MUNICIPAL INSPECTORS IN MEXICO BY ANY MEASURE HOWEVER THE VENTURE FACES HUGE RISKS INCORPORATED FOUR YEARS AGO IT HAS NO TRACK RECORD IN THE ENVIRONMENTAL BUSINESS AND ITS SIX EMPLOYEES HAVE LIMITED EXPERIENCE IN THE FIELD MR ZINTGRAFF 51 YEARS OLD HAS A MASTER'S DEGREE IN CHEMICAL ENGINEERING WITH A CONCENTRATION IN ENVIRONMENTAL SCIENCE AND ENGINEERING BUT HIS TWO MOST RECENT JOBS WERE WORKING AS A BROKER FOR SHEARSON LEHMAN HUTTON INC AND RAISING VENTURE CAPITAL HE LAST FOCUSED ON ENVIRONMENTAL SCIENCE AS AN ENGINEER FOR ELI LILLY & CO FROM 1971 TO 1976 IN BUSINESS HIS RECORD IS CHECKERED A CHEMICAL HOLDING COMPANY HE STARTED AND RAN FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN 1983 AFTER IT COULDN'T REPAY A BANK DEBT IT EMERGED FROM CHAPTER 11 IN 1986 BUT WAS LIQUIDATED THAT YEAR MOREOVER THERE'S NO GUARANTEE THAT ENVIRONMENTAL MANAGEMENT WILL SUCCEED IN ITS ACQUISITION PLANS WHICH HINGE ON THE STOCK OFFERING THE STOCK AVAILABLE SINCE LAST MAY HASN'T EXACTLY BEEN A BESTSELLER MR ZINTGRAFF SAYS THE COMPANY HAS RECENTLY RECEIVED COMMITMENTS THAT WILL ALLOW IT TO COMPLETE THE FIRST STAGE OF THE OFFERING REPRESENTING 1 MILLION OF A PLANNED 5 MILLION TOTAL THE OFFERING HAS NO UNDERWRITER AND ISN'T BEING SOLD THROUGH THE USUAL NETWORK OF BROKERS USING A LOOPHOLE IN FEDERAL SECURITIES LAW THAT ALLOWS COMPANIES TO AVOID REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION IF THE STOCK IS SOLD ONLY IN A SINGLE STATE COMPANY EMPLOYEES ARE SELLING THE SHARES DIRECTLY TO FRIENDS AND BUSINESS ASSOCIATES EVEN BY COLDCALLING SAN ANTONIO CITY OFFICIALS IT'S ALMOST LIKE SELLING AVON DOOR TO DOOR SAYS PEGGY MOFFETT VICE PRESIDENT OF INVESTOR RELATIONS BUT UNTIL THE STOCK IS REGISTERED WITH THE SEC WHICH WON'T HAPPEN BEFORE NEXT YEAR IT CAN BE BOUGHT ONLY BY TEXANS AND MORE IMPORTANT FOR PROSPECTIVE INVESTORS HAS NO SECONDARY MARKET THE COMPANY'S BUSINESS PLAN INVOLVES BIG STRATEGIC RISKS AS WELL IT WANTS TO BREAK INTO AN INDUSTRY ALREADY BURSTING WITH EXPERIENCED WELLCAPITALIZED COMPETITORS AND INTO A MEXICAN MARKET THAT WHILE GROWING IS STILL SMALL THE MARKET FOR ENVIRONMENTAL PRODUCTS AND SERVICES IN MEXICO TOTALS 1 BILLION A YEAR NOW AND IS PREDICTED TO GROW TO 2 BILLION BY 1997 BARELY 1 OF THE SIZE OF THE US MARKET SAYS BUSINESS ENVIRONMENTAL INTERNATIONAL INC A SAN DIEGO CONSULTING FIRM WHAT EVERYBODY SEES IN MEXICO IS TREMENDOUS DEMAND SAYS BOB JONES PRESIDENT OF JONES & NEUSE AN AUSTIN ENVIRONMENTALENGINEERING FIRM WHAT DOES NOT EXIST IN MEXICO ARE THE RESOURCES TO SATISFY THAT DEMAND ENVIRONMENTAL MANAGEMENT OFFICIALS AND SHAREHOLDERS PLAY DOWN THESE CONCERNS THEY FOCUS INSTEAD ON 450 MILLION OF MEXICAN AND US GOVERNMENT MONEY PLEDGED UNDER NAFTA TO ENVIRONMENTAL CLEANUP OVER THE NEXT FOUR YEARS AND THE PROMISE OF ADDITIONAL FUNDING I JUST CAN'T BELIEVE THAT THIS IS NOT GOING TO BE A MAJOR INDUSTRY SAYS ROBERT LENGEL AN EARLY SHAREHOLDER OF THE COMPANY AND AN ASSISTANT PROFESSOR OF STRATEGIC MANAGEMENT AT THE UNIVERSITY OF TEXAS AT SAN ANTONIO THERE'S GOING TO BE ROOM FOR A WHOLE LOT OF PEOPLE MR ZINTGRAFF SAYS THE COMPANY'S ACQUISITION PLAN WILL ALLOW IT TO TAP THE EXPERIENCE AND CONTACTS OF EXISTING COMPANIES MOREOVER HE ADDS BUSINESS IS NOT THAT COMPLICATED IT TAKES CAPITAL AND IT TAKES MANAGEMENT EXPERTISE WE'LL GET THE CAPITAL AND WE'VE GOT THE EXPERTISE AND WE CAN MAKE IT WORK SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR CLEARING THINGS UP AT THE BORDER WSJ APRIL 6 1994 9403160167 YY94 MM04 9404060024 940316 RULE OF LAW CARDINAL BERNARDIN'S UNNECESSARY ORDEAL BY THOMAS SCORZA STEVEN COOK'S VOLUNTARY DISMISSAL OF HIS SEXUAL ABUSE LAWSUIT AGAINST CHICAGO'S CARDINAL JOSEPH BERNARDIN HAS FREED A GOOD MAN FROM TERRIBLE ACCUSATIONS THE PROBLEM WITH THE SUIT WAS THAT IT WAS FILED IN THE FIRST PLACE THE COMPLAINT ITSELF WAS DYNAMITE THAT THE LEADER OF THE LARGEST ROMAN CATHOLIC ARCHDIOCESE IN THE US WHILE HE SERVED AS ARCHBISHOP OF THE CINCINNATI ARCHDIOCESE 20 YEARS AGO ABUSED A TEENAGE SEMINARIAN WHATEVER ITS EVENTUAL OUTCOME THE SUIT MEANT THAT THE CARDINAL WOULD HAVE TO ENDURE IN PUBLIC AND DAILY THE STATUS OF BEING AN ACCUSED WRONGDOER RELEGATED TO THE ROLE OF EMPHATICALLY ASSERTING HIS INNOCENCE ALTHOUGH PROBABLE CAUSE ALONE WILL LEGALLY SUPPORT A CRIMINAL INDICTMENT WE BAR PROSECUTORS AS AN ETHICAL MATTER FROM SEEKING AN INDICTMENT UNLESS THEY ARE CONVINCED IN GOOD FAITH THAT THE CONTEMPLATED CHARGES CAN BE PROVED BEYOND A REASONABLE DOUBT BUT NEITHER OUR CIVIL LAW NOR OUR SYSTEM OF LEGAL ETHICS DOES MUCH TO RESTRAIN PLAINTIFFS AND THEIR LAWYERS FROM BRINGING QUESTIONABLE PRIVATE CLAIMS CLAIMS THAT ARE OFTEN MORE DAMAGING THAN CRIMINAL CHARGES THE FILING FEE FOR STEVEN COOK'S 10 MILLION FEDERAL LAWSUIT WAS ONLY 120 THE TOTAL OUTOFPOCKET COST OF COMMENCING THE SUIT COULD NOT HAVE BEEN VERY MUCH AND WAS OBVIOUSLY NOT A DETERRENT SOME SAY THAT MERITLESS LAWSUITS ARE DETERRED BY THE FACT THAT THE PLAINTIFF/ACCUSER KNOWS THAT HE TOO WILL HAVE TO GO THROUGH THE ORDEAL OF THE ENSUING LITIGATION BUT FOR POOR MR COOK FOR WHOM ONE CAN FEEL ONLY SYMPATHY THE ORDEAL OF LITIGATION DID NOT APPEAR TO WEIGH VERY HEAVILY NOR WAS MR COOK DETERRED BY THE NEED TO FIND A LAWYER WHO WOULD BE PAID ONLY IF HIS SUIT WERE SUCCESSFUL IN THEORY THAT PLAINTIFFS LIKE MR COOK ARE USUALLY FORCED TO SEEK ATTORNEYS WHO WILL WORK ON A CONTINGENCYFEE BASIS SHOULD DETER FRIVOLOUS LAWSUITS THIS IS BECAUSE LAWYERS PRESUMABLY WILL SIFT THROUGH PROPOSED SUITS AND TAKE ON ONLY THOSE WITH SOME REAL MERIT AND THUS SOME REAL POSSIBILITY OF SUCCESS BUT THAT THEORY IGNORES THE FACT THAT THERE ARE LOSS LEADERS IN LAW JUST AS IN RETAILING THERE WILL ALWAYS BE LAWYERS WILLING TO TAKE ON HOPELESS CAUSES JUST FOR THEIR PUBLICITY AND CLIENTGENERATING VALUE BECAUSE OF THE SOCALLED AMERICAN RULE MR COOK ALSO DID NOT HAVE TO FEAR BEING SADDLED WITH CARDINAL BERNARDIN'S ATTORNEYS' FEES IF THE JURY FOUND FOR THE CARDINAL DEFENDERS OF THE AMERICAN RULE ARGUE THAT THE ALTERNATIVE ENGLISH RULE UNDER WHICH THE ATTORNEYS' FEES OF THE WINNER ARE SHIFTED TO THE LOSER WOULD PUT TOO MUCH OF A BURDEN ON PLAINTIFFS IN EFFECT THREATENING THEM WITH PUNISHMENT IF THEY HAPPEN TO LOSE ON CLAIMS BROUGHT IN GOOD FAITH BUT IN THE US WE HAVE PROVIDED BY STATUTE FOR AWARDS OF ATTORNEYS' FEES TO VICTORIOUS PLAINTIFFS IN THE KINDS OF LAWSUITS FROM WHICH SOCIETY AS A WHOLE BENEFITS IN THE CIVILRIGHTS AREA FOR INSTANCE WHAT ABOUT RULE 11 OF THE FEDERAL RULES OF CIVIL PROCEDURE UNDER WHICH A FEDERAL JUDGE MAY IMPOSE SANCTIONS ON PARTIES AND ATTORNEYS FOR PRESENTING MERITLESS CLAIMS AND LEGAL POSITIONS MEDIA REPORTS INDICATE THAT MR COOK AND HIS ATTORNEYS WERE MOTIVATED TO DISMISS THEIR CASE IN PART BY THE PROSPECT OF RULE 11 SANCTIONS AFTER THE FLIMSINESS OF MR COOK'S ACCUSATIONS BECAME APPARENT IN THE PRETRIAL INVESTIGATION AND DISCOVERY PROCESS DOESN'T THE DISMISSAL OF THE CASE AGAINST THE CARDINAL SHOW THAT RULE 11 WORKS TO PROTECT THE FALSELY ACCUSED THE SHORT ANSWER IS THAT RULE 11 DID NOTHING TO DETER MR COOK AND HIS ATTORNEYS FROM FILING SUIT AGAINST THE CARDINAL THE OLD RULE 11 WHICH WAS STILL IN EFFECT WHEN MR COOK FILED HIS SUIT IN NOVEMBER REQUIRED LAWYERS TO CERTIFY THAT THEIR CLIENTS' CLAIMS WERE WARRANTED BY LAW AND WELL GROUNDED IN FACT BUT MR COOK AND HIS ATTORNEYS SUED THE CARDINAL DESPITE THE FACT THAT THERE WAS A SUBSTANTIAL TECHNICAL QUESTION WHETHER THE SUIT WAS FILED TOO LATE UNDER APPLICABLE OHIO LAW MORE TELLINGLY THE OLD RULE 11 DID NOT DETER THE SUIT EVEN THOUGH MR COOK'S ALLEGATIONS WERE BASED ON MEMORIES THAT FIRST CAME TO HIM IN HYPNOSIS SESSIONS WITH AN UNLICENSED PRACTITIONER OF REPRESSED MEMORY RECOVERY THOSE MEMORIES DID NOT SURFACE IN EARLIER HYPNOSIS SESSIONS THE NEW RULE 11 WHICH BECAME EFFECTIVE ON DEC 1 AND PRESUMABLY CAME TO GOVERN MR COOK'S ALLEGATIONS REPRESENTS AN INTENTIONAL WEAKENING OF THE FORMER RULE 11 UNDER THE RELEVANT PROVISIONS A PLAINTIFF'S ATTORNEY MAY CHOOSE TO CERTIFY ONLY THAT HIS CLIENT'S FACTUAL CLAIMS ARE LIKELY TO HAVE EVIDENTIARY SUPPORT AFTER A REASONABLE OPPORTUNITY FOR FURTHER INVESTIGATION OR DISCOVERY MOREOVER NOW A MOTION FOR RULE 11 SANCTIONS IS SERVED ON THE ALLEGEDLY OFFENDING PARTY BUT NOT FILED WITH THE COURT FOR 21 DAYS DURING WHICH TIME THE ACCUSED PARTY GETS A CHANCE TO WITHDRAW THE FRIVOLOUS PLEADING OR OTHER FILING IN OTHER WORDS UNDER THE NEW RULE 11 A PLAINTIFF AND HIS ATTORNEYS CAN BRING SUIT ON FLIMSY FACTS HOPE THAT FAVORABLE FACTS DEVELOP PRETRIAL AND THEN ESCAPE RULE 11 SANCTIONS ALTOGETHER BY DROPPING THE SUIT IF THEIR HOPES FOR SUPPORTING FACTS OR FOR A SETTLEMENT OFFER ARE DASHED PERHAPS IT IS NOT POSSIBLE FOR US TO SET OUR FILING FEES MODIFY THE AMERICAN RULE AND TAILOR RULE 11 IN WAYS THAT DO NOT CHILL CIVIL RIGHTS BUT YET IMPOSE REAL RESTRAINTS ON PRIVATE LITIGANTS WISHING TO ASSERT EXPLOSIVE BUT QUESTIONABLE CLAIMS FOR LARGE MONEY DAMAGES MAYBE WE JUST CANNOT WRITE OUR LAWS AND OUR RULES SO THEY DISTINGUISH THE WHEAT FROM THE CHAFF BUT ONE WOULD THINK THAT WE SHOULD BE ABLE TO RELY ON LAWYERS OUR ALLEGED PROFESSIONALS AT THE GATE TO DRAW THE DISTINCTIONS AND TO MAKE THE JUDGMENT CALLS THAT THIS AREA OF THE LAW DEMANDS BUT THAT IS PRECISELY WHERE OUR SYSTEM MOST FAILS US THE CODES OF PROFESSIONAL CONDUCT AND RESPONSIBILITY FOR LAWYERS TALK ABOUT ATTORNEYS BEING OFFICERS OF THE COURT AND HAVING SPECIAL RESPONSIBILITIES TO THE PUBLIC AND FOR THE QUALITY OF JUSTICE BUT IN REALITY LAWYERS ARE ALL TOO READY TO ACCEPT THE NOTION THAT AN ATTORNEY'S ONLY ALLEGIANCE IS TO HIS CLIENT AND TO HIS CLIENT'S WISHES AND INTERESTS NEVER MIND THE IMPLICATIONS OF THE FACT THAT THE LAWYER'S OWN NARROW SELFINTEREST ALSO WEDS HIM TO HIS CLIENT'S CAUSE OUR SYSTEM OF LEGAL ETHICS INSISTS THAT THE ADVERSARY SYSTEM IN WHICH EACH LAWYER LOOKS OUT ONLY FOR HIS OWN CLIENT IS OUR MOST PRACTICAL PATH TO JUST RESULTS THE CARDINAL BERNARDIN CASE SHOWS WHY THAT ARGUMENT FOR THE ADVERSARY SYSTEM IS UNPERSUASIVE A LAWYER'S BLIND DEVOTION TO HIS CLIENT NOT ONLY CAN SERIOUSLY INJURE THE INNOCENT BUT ALSO CAN MAKE OUR LEGAL SYSTEM APPEAR DEVOID OF MORAL BALLAST NOT TO MENTION COMMON DECENCY MR SCORZA IS A FORMER ASSISTANT US ATTORNEY IN CHICAGO AND TEACHES LEGAL ETHICS AS A LECTURER AT THE UNIVERSITY OF CHICAGO LAW SCHOOL SEE RELATED LETTER LETTERS TO THE EDITOR IT'S AN ORDEAL BUT IT'S STILL THE BEST WSJ APRIL 6 1994 9403160081 YY94 MM04 9404060023 940309 UNSETTLING SPLIT JEWS CLASH WITH JEWS IN MASSACRE'S WAKE BITTERLY DIVIDING ISRAEL RELIGIOUS SETTLERS ARE PITTED AGAINST SECULAR BRETHREN ON FUTURE OF WEST BANK TWO NATIONS WILL DEVELOP' BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL IN TEL AVIV RECENTLY 25000 ISRAELIS POURED INTO THE STREETS TO PROTEST THE HEBRON MASSACRE OF PALESTINIANS IN LAST MONTH'S RAMPAGE BY A JEWISH GUNMAN SPEAKER AFTER SPEAKER DENOUNCED THE BLOODBATH TO THE CHEERS OF SPECTATORS MANY OF WHOM WERE SECULAR JEWS THE PROTEST LEADERS CALLED FOR THE REMOVAL OF JEWISH SETTLERS FROM THE POLITICALLY CHARGED WEST BANK TOWN SEVERAL DOZEN MILES AND A WORLD AWAY IN THE WEST BANK TOWN OF EFRAT BOB LANG A RELIGIOUS JEW WATCHED THE SPECTACLE ON TELEVISION IN HIS LIVING ROOM AND FELT UTTERLY BETRAYED BY HIS FELLOW JEWS ISRAEL HE VOWED MUST NEVER WITHDRAW FROM HEBRON OR ANYWHERE ELSE IN THE WEST BANK YOU'VE ABANDONED US HE TOLD AN ACQUAINTANCE WHO PARTICIPATED IN THE RALLY FAIRLY SPITTING OUT THE WORDS ISRAEL'S JEWS HAVE SPENT ALMOST FIVE DECADES WARRING WITH THEIR ARAB NEIGHBORS NOW THEY ARE FACING A DIFFERENT BUT EQUALLY FORMIDABLE ADVERSARY THEMSELVES IN THE WAKE OF THE HEBRON MASSACRE THE COUNTRY'S JEWS HAVE BEEN POLARIZED THE DIVISION ISN'T ALWAYS ALONG CLEAR LINES BUT IN GENERAL ONE GROUP IS MADE UP PRIMARILY OF SECULAR JEWS AND INCLUDES MOST OF THE GOVERNMENT WHICH WANTS TO PULL JEWS OUT OF HEBRON MANY IN THIS GROUP ARE OPEN TO TERRITORIAL COMPROMISE ON THE WEST BANK IN THE INTEREST OF FORGING PEACE IN THE MIDEAST SQUARELY ON THE OTHER SIDE THOUGH STANDS A GROUP MADE UP MOSTLY OF RELIGIOUS JEWS INCLUDING MORE THAN 45000 WHO ARE AMONG THE 130000 JEWISH SETTLERS IN THE WEST BANK AND GAZA STRIP WITH FEW EXCEPTIONS THEY TOO DEPLORED THE HEBRON MASSACRE BUT THEY OPPOSE COMPROMISING ON THE WEST BANK THE TWO GROUPS HAVE SHARED A SOMETIMES UNEASY PARTNERSHIP SINCE ISRAEL WAS CREATED IN 1948 BUT THE ALLIANCE BEGAN TO WAVER EVEN BEFORE ISRAEL SIGNED ITS ACCORD WITH THE PALESTINE LIBERATION ORGANIZATION LAST FALL AGREEING TO CEDE CONTROL BACK TO THE ARABS IN THE WEST BANK CITY OF JERICHO AND THE GAZA STRIP AND WHEN JEWISH EXTREMIST BARUCH GOLDSTEIN ENTERED HEBRON'S CAVE OF THE PATRIARCHS WITH A RIFLE ON FEB 25 AND OPENED FIRE ON THE PALESTINIANS WHO WERE PRAYING THERE MUCH OF WHAT WAS LEFT OF THE ALLIANCE WAS SHATTERED YESTERDAY MORNING FOREIGN MINISTER SHIMON PERES ADMITTED AS MUCH IN A MEETING WITH FOREIGN JOURNALISTS ASKED ABOUT THE FUTURE OF THE WEST BANK SETTLEMENTS HE NOTED THAT THE PLO CAN GIVE US VERY LITTLE THEY HAVE NO LAND THEY HAVE NO AUTHORITY THEY HAVE NO MEANS WE ARE NEGOTIATING WITH OURSELVES THE CHALLENGE HE ADDED IS TO CHOOSE THE RIGHT COURSE WITHOUT SPLITTING THE NATION BEYOND RECOGNITION MUCH DAMAGE ALREADY HAS BEEN DONE SPEND SOME TIME IN THE WEST BANK AND THE DEPTH OF THE RIFT BECOMES ALL TOO CLEAR RECENTLY IN THE JEWISH SETTLEMENT OF ELON MOREH RABBI MENACHEM FELIX REFUSED TO HELP LEAD SABBATH PRAYERS IN THE SYNAGOGUE HIS REASON HE DIDN'T WANT TO RECITE THE TRADITIONAL PRAYER CALLING ON GOD'S PROTECTION FOR THE LEADERS OF THE GOVERNMENT WHOSE VIEWS ON THE WEST BANK CLASH WITH HIS OWN MANY RELIGIOUS SETTLERS WHO ONCE WERE HERALDED AS HEROES FOR STAKING CLAIMS IN THE WEST BANK NOW SPEAK OF FEELING ABANDONED BY THEIR SECULAR COUNTERPARTS IN THE WAKE OF THE MASSACRE THE ISRAELI PUBLIC HAS LOST ITS ATTACHMENT TO THE SETTLEMENTS AND ITS EMPATHY FOR THE SETTLERS SAYS YISRAEL HAREL CHAIRMAN OF THE COUNCIL OF JEWISH RESIDENTS OF JUDEA SAMARIA AND GAZA JUDEA AND SAMARIA ARE THE BIBLICAL NAMES FOR THE WEST BANK THE SETTLERS HAVE BEEN LIKE SCOUTS SENT OUT INTO THE LAND WHEN WE FINALLY LOOKED BACK WE DISCOVERED THAT WE HAD WALKED SO FAR THAT WE HAD LEFT THE MAIN CAMP BEHIND MR HAREL ALSO IS THE EDITOR OF NEKUDA A SETTLERS' JOURNAL WHERE ARTICLE SUBMISSIONS ARE TAKING ON INCREASINGLY STRIDENT TONES IN ONE PIECE A RELIGIOUS SETTLER PROPOSED GIVING UP ON THE ALLIANCE WITH SECULAR JEWS AND INSTEAD BUILDING A SEPARATE EDUCATION CULTURE AND JUSTICE SYSTEM IN THE WEST BANK AND GAZA STRIP IN ANOTHER ARTICLE A RABBI ARGUED THAT RELIGIOUS SETTLERS SHOULD CONSIDER THEMSELVES OPPONENTS NOT JUST OF THE CURRENT GOVERNMENT BUT OF THE ENTIRE STATE OF ISRAEL IF GOD FORBID WE ARE EVACUATED FROM THE WEST BANK THERE WILL BE A SPLIT IN THE JEWISH PEOPLE THAT COULD BE AS DANGEROUS AS THE ONE THAT OCCURRED IN THE TIME OF THE SECOND TEMPLE MR HAREL SAYS REFERRING TO THE CIVIL UNREST THAT LED TO THE EXPULSION OF THE JEWS FROM ISRAEL ALMOST 2000 YEARS AGO TWO JEWISH NATIONS WILL DEVELOP HERE AND THE LOSER WILL BE THE COUNTRY JEWS ON THE OTHER SIDE OF THE SETTLEMENT DEBATE ALSO DESCRIBE A NATION DIVIDED ONE TEL AVIV COLUMNIST WHO FAVORS COMPROMISING IN THE WEST BANK WENT SO FAR AS TO DECLARE THAT MANY ISRAELIS FEEL LESS SYMPATHY WHEN A WEST BANK SETTLER IS KILLED THAN WHEN AN ISRAELI FROM A CITY LIKE TEL AVIV IS KILLED IN THE PUBLIC MIND WROTE GIDEON LEVY IN THE NEWSPAPER HA'ARETZ ISRAELIS HAVE ALREADY DIVIDED THEMSELVES INTO US THOSE WHO LIVE IN ISRAEL PROPER AND THEM THE SETTLERS IN TRUTH THE MAJORITY OF SETTLERS AREN'T DEVOUT AND AREN'T NECESSARILY OPPOSED TO TERRITORIAL COMPROMISE MANY MOVED TO THE WEST BANK BECAUSE HOUSING IS CHEAPER THE RIFT BETWEEN THE TWO GROUPS IS ESPECIALLY PAINFUL BECAUSE IT IS SO NEW MANY OF THE SECULAR JEWS ONCE FULLY SUPPORTED THE WEST BANK SETTLEMENTS AMONG THEM WAS BOAZ SHILO A 31YEAROLD FARMER FROM THE HAIFA AREA I USED TO THINK THAT WE DIDN'T HAVE TO RETURN ANY LAND THAT THE SETTLERS WERE RIGHT HE SAYS BUT A FEW MONTHS AGO WHILE AWAY FROM HIS TWO YOUNG DAUGHTERS AND HIS FIELDS ON MILITARY RESERVE DUTY HE WAS STATIONED AS A GUARD OUTSIDE THE CAVE OF PATRIARCHS IN HEBRON THE TOUGHEST FOES HE FACED THERE WEREN'T ARABS BUT JEWS LIKE HIM RADICAL SETTLERS CASTIGATED HIM AS A NAZI AND A SELFHATING JEW BECAUSE THEY FELT THAT HE WAS SIDING WITH THE PALESTINIANS DURING DISPUTES IN THE BEGINNING I THOUGHT KEEPING THE SETTLEMENTS WAS WORTH IT HE SAYS NOW IT'S NOT THE PEOPLE LIVING THERE DON'T UNDERSTAND THAT THERE NEEDS TO BE PEACE THE RIFT SEEMS ONLY TO HAVE WIDENED IN RECENT DAYS MANY SECULAR JEWS WERE IN AN UPROAR FOR EXAMPLE WHEN SHORTLY AFTER THE MASSACRE IN HEBRON A TELEVISION CREW FILMED PARLIAMENT MEMBER HANAN PORAT JOYOUSLY ENTERING KIRYAT ARBA THE SETTLEMENT WHERE THE GUNMAN LIVED HOLDING A BOTTLE OF WINE MR PORAT A FOUNDER OF GUSH EMUNIM A GROUP OF RELIGIOUS JEWS THAT SPEARHEADED THE JEWISH SETTLEMENT DRIVE WISHED EVERYONE IN A MERRY VOICE HAPPY PURIM THE JEWISH HOLIDAY BEING CELEBRATED THAT DAY THE PASSIONATE INFORMAL MR PORAT HAD ALWAYS PLAYED THE ROLE OF THE QUINTESSENTIAL WEST BANK PIONEER BUT HIS BOISTEROUS APPEARANCE SO SHORTLY AFTER THE MASSACRE REPELLED SOME SECULAR ISRAELIS LATER MR PORAT PUBLICLY CONDEMNED THE MASSACRE AND EXPLAINED HIS SEEMINGLY INAPPROPRIATE BEHAVIOR BY SAYING THAT ON PURIM A JEW IS COMMANDED TO BE HAPPY NO MATTER WHAT BUT BY THEN IT WAS TOO LATE THE DEBATE OVER THE SETTLEMENTS IS COMING TO A HEAD AS THE GOVERNMENT WEIGHS WHAT TO DO WITH THE 400 OR SO EXTREMIST SETTLERS LIVING IN HEBRON SEVEN OF ISRAEL'S 15 CABINET MINISTERS THIS WEEK PUBLICLY CALLED FOR THE IMMEDIATE REMOVAL OF THE SETTLERS SAYING THAT PAINFUL AS IT IS TO LEAVE THE PLACE WHERE THE BIBLE SAYS ABRAHAM ISAAC JACOB AND THEIR WIVES ARE BURIED IT IS ALMOST IMPOSSIBLE FOR THE ISRAELI ARMY TO PROTECT THE SETTLERS THERE ALREADY LEADERS OF THE SETTLEMENT ARE DRAWING UP LISTS OF PEOPLE WILLING TO HELP FIGHT ANY EVACUATION MANY ISRAELIS HAVE BEGUN TO QUESTION WHETHER THE BITTER DIVISION CAN BE RESOLVED WITHOUT VIOLENCE IN A TEL AVIV CAFE L MARC ZELL A RELIGIOUS LAWYER WHO LIVES IN A WEST BANK SETTLEMENT TRIES TO MAKE SOME SENSE OF THE SPLIT AS HE DISCUSSES THE JEWISH SETTLEMENTS WITH AVI RAZ A SECULAR JOURNALIST LIVING IN TEL AVIV THOUGH BOTH MEN ARE ABOUT THE SAME AGE AND READ MANY OF THE SAME ISRAELI AUTHORS THEY MAY AS WELL BE LIVING IN TWO DIFFERENT COUNTRIES AS MR RAZ SEES IT THE SETTLEMENTS REPRESENT OCCUPATION INEQUALITY BETWEEN JEWS AND ARABS AND THE DENIAL OF BASIC RIGHTS TO THE PALESTINIANS VALUES THAT HAVE NO PLACE IN DEMOCRATIC ISRAEL BUT FOR MR ZELL A JEWISH PRESENCE IN HEBRON IS AT THE HEART OF HIS JEWISH SELFIDENTITY IF ISRAEL LEAVES HEBRON A CITY SO DEEPLY CONNECTED TO JEWISH RELIGION AND THE MOST IMPORTANT EVENTS IN JEWISH HISTORY ASKS MR ZELL THEN WHAT RIGHT DO ISRAELIS HAVE TO TEL AVIV A CITY THAT IS LESS THAN 100 YEARS OLD AND WAS BUILT ON LAND WHERE PALESTINIANS ALSO WERE ONCE THE MAJORITY IF WE HAVE NO PLACE IN HEBRON HE SAYS THEN WE DON'T HAVE A RIGHT TO BE ANYPLACE ELSE IN THIS COUNTRY ON THE DRIVE SOUTH OF JERUSALEM THE JEWISH WEST BANK SETTLEMENT OF EFRAT SUDDENLY RISES OUT OF THE BROWN AND GREEN LANDSCAPE A ROW OF IDENTICAL ROSECOLORED HOUSES PERCHED ON THE JUDEAN HILLS THE LOCAL COUNCIL OF EFRAT RECENTLY DECIDED NOT TO HOOK UP EFRAT'S 5500 RESIDENTS TO CABLE TV TOWN LEADERS WORRIED THAT THEIR CHILDREN WOULD BE EXPOSED TO SECULAR VALUES AND FEARED THE SEX AND VIOLENCE COMMON IN FOREIGN PROGRAMS AT AN AMERICANSTYLE HOUSE NOT FAR FROM THE CENTER OF TOWN MR LANG WHO WORKS AS A SPOKESPERSON FOR THE SETTLEMENTS IN THIS AREA SERVES CHOCOLATE CAKE TO YEHUDIT HAREL A PSYCHOLOGIST FROM TEL AVIV WHO HAS TRAVELED HERE TO TRY TO START A DIALOGUE BETWEEN PEACE ACTIVISTS AND SETTLERS THEY ARE A PICTURE IN CONTRASTS MS HAREL REFUSED TO HAVE A RABBI EVEN AT THE FUNERAL OF HER SON WHO WAS KILLED RECENTLY IN A TRAFFIC ACCIDENT MR LANG WHO EMIGRATED HERE FROM NEW YORK WEARS A KNITTED SKULLCAP HIS JEWISH MARRIAGE CONTRACT WRITTEN IN ELEGANT CALLIGRAPHY HANGS IN THE LIVING ROOM MS HAREL DESCRIBES HER FEAR AND ANGER AT BEING VERBALLY ABUSED BY SETTLERS AFTER SHE PARTICIPATED IN THE TEL AVIV RALLY CALLING FOR THE REMOVAL OF JEWISH SETTLERS FROM HEBRON MR LANG COMPLAINS ABOUT HIS BITTERNESS AT BEING REJECTED BY AN ISRAELI SOCIETY THAT URGED HIM TO SETTLE THE LAND AND ONCE REVERED HIM AS A PIONEER AS THE HEATED DISCUSSION UNFOLDS EACH ONE SPINS HIS OR HER VISION OF HOW THE FUTURE BORDERS OF ISRAEL SHOULD LOOK AT ONE POINT MS HAREL BURIES HER FACE IN HER HANDS DRAINED BY EMOTION AND MR LANG REACHES OVER AND TOUCHES HER HEAD IN A GESTURE OF COMFORT BUT THAT MOMENT OF GOODWILL CAN'T DISGUISE WHAT IS EVIDENT TO BOTH OF THEM THEIR POSITIONS ARE UTTERLY IRRECONCILABLE LEAVING THE HOUSE MS HAREL STEPS INTO A BITTERLY COLD AFTERNOON AN EXPRESSION OF DESPAIR ON HER FACE DO YOU KNOW WHAT MAKES ME REALLY SCARED SHE SAYS SOMETIMES I THINK WE ARE LYING TO EACH OTHER MAYBE IT'S ALREADY TOO LATE MAYBE WE AREN'T GOING TO BE ONE NATION ANYMORE SEE RELATED LETTER LETTERS TO THE EDITOR ASHES AND SACKCLOTH IN REACTION TO MASSACRE WSJ APRIL 6 1994 9403090004 YY94 MM04 9404060022 940309 RULE OF LAW THE WHITE HOUSE COUNSEL'S JOB BY TERRY EASTLAND IN HIS LETTER OF RESIGNATION TO PRESIDENT CLINTON BERNARD NUSSBAUM BLAMED HIS DECISION TO QUIT ON THE CONTROVERSY CREATED BY THOSE WHO DO NOT UNDERSTAND NOR WISH TO UNDERSTAND THE ROLE AND OBLIGATION OF A LAWYER EVEN ONE ACTING AS WHITE HOUSE COUNSEL MR NUSSBAUM WAS RIGHT IN COMPLICATED AND IRONIC WAYS BY ALL ACCOUNTS MR NUSSBAUM WHO SPENT 27 YEARS AS A TOP CORPORATE LITIGATOR IN NEW YORK CITY IS AN EXCELLENT LAWYER HE PROBABLY WOULD HAVE BEEN A FINE WHITE HOUSE COUNSEL SOMETIME BEFORE THE 1970S MR NUSSBAUM PROVED UNABLE TO COPE EFFECTIVELY WITH THE CULTURE OF SCANDAL THAT HAS EMERGED SINCE THE LATE '60S AND ESPECIALLY WATERGATE AS HIS FRIEND LEONARD GARMENT WHO SERVED AS COUNSEL TO PRESIDENT NIXON IN 197374 SYMPATHETICALLY PUTS IT HE WAS NOT VERY WELL VERSED IN THE WAYS OF WASHINGTON IRONICALLY MR NUSSBAUM SERVED ALONG WITH HILLARY RODHAM CLINTON ON THE HOUSE JUDICIARY COMMITTEE DURING ITS INVESTIGATION OF WATERGATE AND IT IS MORE HIS PARTY THAN THE GOP THAT OVER THE PAST 20 YEARS HAS HARPED ON THE IMPORTANCE OF ETHICS IN GOVERNMENT ESPECIALLY BY THE PRESIDENT AND THE EXECUTIVE BRANCH THE CULTURE OF SCANDAL THAT EMBRACES THAT IDEA IS DEFINED BY THE ETHICS LAWS AND REGULATIONS MOST PUT IN PLACE IN THE PAST 30 YEARS THAT GOVERN THE EXECUTIVE AND THAT ARE ENFORCED BY CONGRESS GOVERNMENT ETHICS OFFICERS AND IN ITS OWN LOUD AND VISIBLE WAY THE PRESS CENTRAL TO THIS CULTURE IS THE INDEPENDENT OR SPECIAL COUNSEL WHO IS SUMMONED TO CONDUCT CRIMINAL PROBES OF EXECUTIVE OFFICERS EVEN IN CONTEXTS IN WHICH ORDINARY PROSECUTORS WOULD FIND NO REASONABLE BASIS TO PROCEED ALSO CENTRAL TO THIS CULTURE IS THE NOTION THAT EXECUTIVE OFFICERS ARE SUPPOSED TO AVOID EVEN THE APPEARANCE OF IMPROPRIETY FOUND IN AN EXECUTIVE ORDER ISSUED BY PRESIDENT LYNDON JOHNSON IN 1965 THIS STANDARD IS ESPECIALLY ENDORSED BY THE PRESS WHICH TENDS TO REGARD ANY APPEARANCE INFRACTION AS A POSSIBLE FIRST STEP ON THE SLIPPERY SLOPE TO ANOTHER WATERGATE THE WHITE HOUSE HAS DENIED INTERFERING WITH THE CRIMINAL INVESTIGATION OF WHITEWATER BUT THE MERE FACT THAT MR NUSSBAUM MET ON THREE OCCASIONS WITH TREASURY DEPARTMENT OFFICIALS TO DISCUSS THE CASE WAS UNIVERSALLY JUDGED A VIOLATION OF THE APPEARANCE STANDARD MR NUSSBAUM WASN'T THE ONLY ONE GUILTY OF THIS INFRACTION AND SOONER OR LATER MOST OF THE OTHERS WHO PARTICIPATED WILL BE MADE TO PAY WITH THEIR JOBS AND REPUTATIONS BUT MR NUSSBAUM WAS MADE TO DRAW THE FIRST BLACK BEAD BECAUSE HE AS THE WHITE HOUSE COUNSEL AND ITS DESIGNATED AGENCY ETHICS OFFICER SHOULD HAVE KNOWN BETTER IN FACT MR NUSSBAUM SHOULD HAVE KNOWN BETTER ALTHOUGH THE REASON IS NOT JUST TO SATISFY THE MODERN APPEARANCE STANDARD MR NUSSBAUM CONCEIVED OF HIS JOB AS THAT OF PROTECTING HIS CLIENT THE PRESIDENT AND WERE HE IN THE PRIVATE SECTOR HIS WHITEWATERRELATED ACTIONS WOULD HAVE CAUSED NO PROBLEMS BUT THE WHITE HOUSE COUNSEL'S JOB INVOLVES MORE THAN THAT YOU ARE ALSO COUNSEL TO THE PRESIDENTIAL OFFICE SAYS BOYDEN GRAY WHO HELD MR NUSSBAUM'S JOB UNDER PRESIDENT BUSH AND IT'S YOUR RESPONSIBILITY TO LEAVE THE INSTITUTION AS STRONG AS IT WAS WHEN YOU WENT IN BY THAT STANDARD THE MOST IMPORTANT ONE MR NUSSBAUM FAILED SPECTACULARLY ACTIONS HOWEVER UNREMARKABLE IN A PREVIOUS ERA THAT TODAY CAN PROVOKE SUBPOENAS OF MANY HIGHRANKING WHITE HOUSE OFFICIALS CANNOT BE REGARDED AS EXCELLENT PUBLIC SERVICE A CLINTONNUSSBAUM LEGACY IS THAT IT WILL BE EASIER TO SUBPOENA TOP WHITE HOUSE OFFICIALS MORE BROADLY IT WILL BE HARDER FOR THE PRESIDENT'S LAWYERS TO DEFEND WHAT HAMILTON CALLED THE CONSTITUTIONAL RIGHTS OF THE EXECUTIVE MR NUSSBAUM'S SUCCESSOR LLOYD CUTLER WILL HAVE TO GRAPPLE WITH THIS LEGACY THIS IS THE SECOND TIME AROUND FOR MR CUTLER WHO SERVED AS JIMMY CARTER'S WHITE HOUSE COUNSEL HE KNOWS THE BASIC WORK OF THE OFFICE EXAMINING LEGISLATION SENT TO THE PRESIDENT VETTING PRESIDENTIAL NOMINATIONS JUDGING PARDON PETITIONS REVIEWING ALL THE OFFICIAL REMARKS OF THE PRESIDENT CONSIDERING ETHICS QUESTIONS AND SO ON UNLIKE MR NUSSBAUM HE HAS A PUBLIC RECORD OF ENGAGEMENT WITH CONSTITUTIONAL ISSUES ALTHOUGH NOTE WELL THAT MR CUTLER A STRONG ADVOCATE OF INDEPENDENT COUNSEL LEGISLATION AND A CRITIC OF THE CONSTITUTION'S SEPARATION OF POWERS HAS NOT BEEN A STRONG PROPONENT OF EXECUTIVE POWER ALSO UNLIKE MR NUSSBAUM HE IS WELL VERSED IN THE WAYS OF WASHINGTON STILL HE WILL FIND THIS JOB MORE DIFFICULT THAN THE ONE HE HAD UNDER PRESIDENT CARTER FOR ONE THING HE WILL ARRIVE NOT KNOWING WHETHER THE PRESIDENT OR THE FIRST LADY HAS VIOLATED ANY LAWS THIS IS A VERY DANGEROUS SPOT TO BE IN AS A LAWYER MR CUTLER WILL HAVE TO ASSUME HIS CLIENT HAS DONE NOTHING WRONG BUT IF HE ADVISES THE PRESIDENT TO DO CERTAIN THINGS AND THE PRESIDENT DISAGREES AND MR CUTLER DOESN'T KNOW WHY HE DISAGREES MR CUTLER COULD BE DRAWN INTO A COVERUP FOR ANOTHER MR CUTLER WILL DISCOVER PEOPLE ON THE WHITE HOUSE STAFF AND ELSEWHERE IN THE ADMINISTRATION WHO SEEM TO THINK THEMSELVES A STEP ABOVE OTHER MORTALS INVOLVED IN POLITICS THEY SEE THEMSELVES AS INHERENTLY GOOD PEOPLE WHO ARE DOING GOOD THINGS FOR THE COUNTRY AND THEY COULD NOT POSSIBLY DO ANYTHING WRONG THE BAD PEOPLE WERE THOSE REPUBLICANS WHO GAVE US THE GREED DECADE IRANCONTRA AND LONG AGO WATERGATE WHETHER MR CUTLER NO PERSONAL FRIEND OF BILL'S OR HILLARY'S CAN CHANGE THIS ATTITUDE IS OBVIOUSLY DOUBTFUL LEADERSHIP MUST COME FROM THE PRESIDENT WHOSE PUBLIC PRONOUNCEMENTS SO FAR WOULD NOT APPEAR TO HAVE ENCOURAGED PENITENCE ON THE PART OF ARROGANT SUBORDINATES FINALLY MR CUTLER'S JOB MAY BE COMPLICATED BY THE UNPRECEDENTED PHENOMENON OF A DE FACTO PLURAL PRESIDENCY PAST FIRST LADIES HAVE INFLUENCED THE DECISIONS OF THEIR HUSBAND PRESIDENTS BUT MRS CLINTON'S DIFFERENT INFLUENCE IS NOT MERELY OF DEGREE BUT OF KIND NO FIRST LADY HAS EVER BEEN IN CHARGE OF THE MOST IMPORTANT POLICY INITIATIVE OF HER HUSBAND'S PRESIDENCY AND NO FIRST LADY HAS HAD A POLITICAL CONSTITUENCY WITHIN AND OUTSIDE THE ADMINISTRATION SHE HAS IN EFFECT WIELDED THE PRESIDENT'S CONSTITUTIONAL APPOINTMENT POWERS AS HER ALLIES HOLD HIGH POSITIONS IN JUSTICE AND OTHER AGENCIES IT IS NOT UNTHINKABLE THAT MRS CLINTON'S INTERESTS MIGHT DIVERGE FROM HER HUSBAND'S IN WHITEWATER IF NOWHERE ELSE MR CUTLER SAYS HE WILL SERVE THE PRESIDENCY AND NOT BE MR CLINTON'S PRIVATE ATTORNEY BUT WHICH PART OF THE PRESIDENCY WILL HE SERVE IF PART OF MR NUSSBAUM'S JOB WAS TO SERVE MRS CLINTON THE ROLE AND OBLIGATIONS OF A LAWYER ESPECIALLY ONE ASKED TO SERVE IN THIS WHITE HOUSE AS ITS COUNSEL ARE MORE DEMANDING AND MUCH TRICKIER THAN ANYONE SAVE MR NUSSBAUM HIMSELF HAS YET TO UNDERSTAND MR EASTLAND IS EDITOR OF FORBES MEDIACRITIC AND A FELLOW AT THE ETHICS AND PUBLIC POLICY CENTER IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR WHITE HOUSE COUNSEL HIS DUTY IS CLEAR WSJ APRIL 6 1994 9403090056 YY94 MM04 9404060021 940302 TECHNOLOGY & MEDICINE NIACIN VITAMIN USED TO CUT CHOLESTEROL CALLED TOO TOXIC TO BE NONPRESCRIPTION BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL A TEAM OF MEDICAL RESEARCHERS SAID THAT NIACIN A B VITAMIN THAT MANY PEOPLE USE TO LOWER THEIR CHOLESTEROL LEVELS IS TOO TOXIC TO BE SOLD AS A NONPRESCRIPTION DRUG THE RESEARCHERS FOUND IN AN EXPERIMENT WITH 46 PATIENTS THAT NIACIN TAKEN IN HIGH ENOUGH DOSAGES TO REDUCE THE LEVEL OF CHOLESTEROL PRODUCED MORE ADVERSE SIDE EFFECTS THAN ANY EXPERIMENTAL CHOLESTEROLLOWERING DRUG THAT THEY TESTED THE POPULAR FORM OF NIACIN THAT SLOWLY RELEASES THE VITAMIN OVER SEVERAL HOURS PRODUCED SIGNS OF LIVER TOXICITY IN MORE THAN HALF THE PATIENTS WHO TOOK DOSES HIGH ENOUGH TO REDUCE THEIR CHOLESTEROL LEVELS REPORTED THE TEAM HEADED BY JAMES M MCKENNEY OF THE PHARMACY SCHOOL AT THE MEDICAL COLLEGE OF VIRGINIA IN THIS WEEK'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION THE OLDER IMMEDIATERELEASE FORM OF NIACIN PRODUCED A DIFFERENT LESS SERIOUS GROUP OF ADVERSE EFFECTS INCLUDING FACIAL FLUSH ITCHING RASH FATIGUE AND A TEMPORARY WARTLIKE SKIN DISFIGUREMENT IN MANY PATIENTS GIVEN THE SIDE EFFECTS ALLOWING NIACIN TO REMAIN ON THE NONPRESCRIPTION MARKET WHERE IT MAY BE USED IN HIGH DOSES FOR CHOLESTEROL LOWERING WITHOUT PROPER MONITORING BY TRAINED HEALTH PROFESSIONALS PRESENTS A POTENTIALLY SERIOUS PUBLIC HEALTH PROBLEM THE TEAM DECLARED THE EXPERIMENTS INVOLVED TAKING 2000 TO 3000 MILLIGRAMS OF NIACIN A DAY WHICH INVOLVES TAKING FROM FOUR TO 12 OF THE 250 MILLIGRAM AND 500 MILLIGRAM TABLETS SOLD IN DRUG AND HEALTHFOOD STORES LIVER PROBLEMS FIRST BECAME EVIDENT WHEN THE DOSAGE REACHED 1500 MILLIGRAMS A DAY MANUFACTURERS COUNTERED THAT THEIR NIACIN PRODUCTS AREN'T SOLD TO LOWER CHOLESTEROL LEVELS WE DON'T MAKE NIACIN AS AN ANTICHOLESTEROL AGENT AND WE DON'T MAKE ANY CLAIM ON THE PACKAGE THAT WOULD INSTRUCT ANYONE THAT THEY SHOULD TAKE THREE GRAMS A DAY SAID CHRISTIAN BOSWELL MARKETING DIRECTOR FOR GOLDLINE LABORATORIES IN FT LAUDERDALE FLA MR BOSWELL SAID GOLDLINE'S SUSTAINEDRELEASE FORM OF NIACIN WHICH WAS USED IN THE EXPERIMENT IS A GENERIC VERSION OF NICOBID THE BRAND OF SUSTAINEDRELEASE NIACIN SOLD BY RHONEPOULENC RORER INC OF COLLEGEVILLE PA THE US UNIT OF THE BIG FRENCH DRUG MAKER RHONEPOULENC SA A RHONEPOULENC SPOKESMAN SAID THAT THE COMPANY DOESN'T PROMOTE NICOBID SUSTAINEDRELEASE NIACIN FOR LOWERING CHOLESTEROL LEVELS IT DOES HOWEVER ADVERTISE ITS NICOLAR BRAND OF IMMEDIATERELEASE NIACIN FOR CHOLESTEROL REDUCTION WE AGREE WITH THE RESEARCHERS THAT PATIENTS TAKING THE IMMEDIATERELEASE FORM SHOULD BE MONITORED BY A DOCTOR BECAUSE OF THE ADVERSE EFFECTS HE SAID THE COMPANY'S TOTAL SALES OF NIACIN ARE ONLY ABOUT 13 MILLION A YEAR HE SAID NIACIN HAS POSED A DILEMMA FOR PHYSICIANS AND PATIENTS DR MCKENNEY AND HIS COLLEAGUES NOTED AS DID THE RHONEPOULENC SPOKESMAN THAT THE VITAMIN HAS BEEN PROVEN NOT ONLY TO LOWER CHOLESTEROL BUT ALSO TO REDUCE THE INCIDENCE OF HEART ATTACKS AND TO SLOW THE CLOGGING OF THE HEART'S ARTERIES IT ALSO IS THE CHEAPEST CHOLESTEROLLOWERING DRUG AROUND WITH A 10DAY SUPPLY OF 500MILLIGRAM TABLETS COSTING ABOUT 2 WIDESPREAD PUBLICITY IN THE LATE 1980S ABOUT ITS CHOLESTEROLLOWERING EFFECTS PROMPTED MANY PEOPLE TO BEGIN SELFMEDICATING THEMSELVES WITH HIGH DOSAGES OF NIACIN BECAUSE THE IMMEDIATERELEASE FORM PRODUCES A HIGH INCIDENCE OF UNPLEASANT EFFECTS SUCH AS FACIAL BLUSH MANY PEOPLE SWITCHED TO THE SUSTAINEDRELEASE FORM THAT DOESN'T PRODUCE SUCH EFFECTS DOCTORS SOON BEGAN SEEING CASES OF LIVER DAMAGE IN PATIENTS TAKING SUSTAINEDRELEASE NIACIN IN THE NEWLY REPORTED EXPERIMENT RESEARCHERS GAVE 23 PATIENTS AN IMMEDIATERELEASE NIACIN MADE BY RUGBY LABORATORIES OF WEST HEMPSTEAD NY A UNIT OF MARION MERRELL DOW INC WHILE ANOTHER 23 PATIENTS TOOK GOLDLINE'S SUSTAINEDRELEASE NIACIN THE DOSAGE WAS INCREASED EVERY SIX WEEKS UNTIL IT REACHED 3000 MILLIGRAMS A DAY FOR BOTH GROUPS AT THE HIGHEST DOSAGE THE IMMEDIATERELEASE NIACIN CUT CHOLESTEROL LEVELS AN AVERAGE OF 16 WHILE THE SUSTAINEDRELEASE FORM LOWERED CHOLESTEROL BY 40 ALTHOUGH THE IMMEDIATERELEASE FORM WASN'T AS EFFECTIVE AS THE SUSTAINEDRELEASE FORM IN LOWERING TOTAL CHOLESTEROL LEVELS IT WAS MORE EFFECTIVE IN RAISING THE HDLCHOLESTEROL LEVEL THE SOCALLED GOOD FORM OF CHOLESTEROL BUT 18 OF THE 23 PATIENTS TAKING THE SUSTAINEDRELEASE FORM HAD TO DROP OUT OF THE EXPERIMENT BECAUSE BLOOD TESTS INDICATED THEY WERE EXPERIENCING LIVER PROBLEMS NINE OF THE 23 TAKING THE IMMEDIATERELEASE NIACIN DROPPED OUT OF THE EXPERIMENT BECAUSE OF SIDE EFFECTS IN AN ACCOMPANYING EDITORIAL LOUIS LASAGNA OF TUFTS UNIVERSITY MEDICAL SCHOOL IN BOSTON AN EXPERT IN DRUG DEVELOPMENT SAID NIACIN STILL HAS A ROLE TO PLAY IN THE MANAGEMENT OF HIGH CHOLESTEROL BUT NOT ON THE BASIS OF SELFDIAGNOSIS AND SELFTREATMENT SEE RELATED LETTER LETTERS TO THE EDITOR VITAMIN OVERDOSING IS EASY TO PREVENT WSJ APRIL 6 1994 9403020101 YY94 MM04 9404060020 940215 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY FEBRUARY 2 1994 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9404050154 940405 REVCO IS BUYING HOOKSUPERX FOR 600 MILLION ACQUISITION WOULD CREATE SECONDLARGEST CHAIN OF DRUGSTORES IN US BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL REVCO DS INC LESS THAN TWO YEARS OUT OF BANKRUPTCYLAW PROCEEDINGS AGREED TO BUY HOOKSUPERX INC FOR ABOUT 600 MILLION THE ACQUISITION WILL CREATE THE SECONDLARGEST DRUGSTORE CHAIN IN THE US BEHIND ONLY WALGREEN CO CURRENTLY RITE AID CORP IS THE NO 2 CHAIN REVCO WILL PAY 1375 A SHARE AND WILL ASSUME ABOUT 300 MILLION IN DEBT WHICH CAN BE IMMEDIATELY CONVERTED TO CASH WITH HOOK REVCO WILL SIGNIFICANTLY EXPAND ITS GEOGRAPHIC REACH INTO 31 STATES FROM NINE CURRENTLY AND WILL OPERATE 2371 STORES ALTHOUGH REVCO IS TAKING ON A BIG CHALLENGE IN DIGESTING AN ACQUISITION THAT WILL DOUBLE ITS SIZE OVERNIGHT SHAREHOLDERS AND COMPANY FOLLOWERS SAY THE MOVE IS A LONGTERM POSITIVE REVCO HAS ONE OF THE BEST INFORMATION SYSTEMS IN THE DRUGSTORE INDUSTRY THAT COULD SIGNIFICANTLY IMPROVE THE PROFITABILTY OF THE HOOK CHAIN WHICH IS FAR WEAKER IN TECHNOLOGY THERE'S A LOT OF SYNERGY BETWEEN THE TWO COMPANIES SAID ALAN SNYDER WHOSE SNYDER CAPITAL MANAGEMENT INC SAN FRANCISCO OWNS 2 OF REVCO STILL REVCO'S STOCK TOOK A BEATING IN YESTERDAY'S VOLATILE STOCK MARKET FALLING 625 CENTS TO 1575 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PEOPLE DON'T KNOW HOOKSUPERX AT ALL SAID ERIC BOSSHARD OF ROULSTON RESEARCH IN CLEVELAND WHO ESTIMATES THAT THE DEAL COULD KNOCK A DIME OFF OF REVCO'S EARNINGS IN THE FISCAL YEAR THAT BEGINS IN MAY THE DEAL HAS BEEN AGREED TO BY HOLDERS OF 49 OF HOOK'S STOCK ABOUT 246 OF HOOK'S OUTSTANDING STOCK IS OWNED BY GOLDMAN SACHS & CO WHICH HAD BEEN SHOPPING ITS STAKE IN THE MONEYLOSING CHAIN FOR SEVERAL MONTHS HOOK WHICH WENT PUBLIC IN 1992 REPORTED A NET LOSS OF 222 MILLION INCLUDING CHARGES OF 197 MILLION FOR FISCAL 1993 ENDED AUG 31 ITS STOCK HAD PLUNGED FROM THE INITIAL 13 A SHARE TO AS LOW AS 575 A SHARE AND A NUMBER OF TOP MANAGERS RECENTLY LEFT THE COMPANY IT SURGED ON THE NEWS OF THE TAKEOVER CLOSING UP 3625 IN BIG BOARD COMPOSITE TRADING YESTERDAY TO 1275 GOLDMAN DIDN'T RETURN A PHONE CALL SEEKING COMMENT THE OTHER MAJOR SHAREHOLDER KROGER & CO WITH ABOUT 25 OF THE STOCK ALSO HAD AGREED TO SELL ITS STAKE THE CINCINNATI GROCERY CHAIN WHICH HAD SPUN OFF MOST OF THE COMPANY IN A 1986 MANAGEMENTLED LEVERAGED BUYOUT SAID IT EXPECTS TO REAP ABOUT 40 MILLION AFTER TAX IF THE DEAL GOES THROUGH SINCE ITS EMERGENCE FROM CHAPTER 11 TWINSBURG OHIOBASED REVCO HAS REPORTED SEVEN QUARTERS OF LARGER THAN EXPECTED EARNINGS REVCO HAD NET INCOME OF 142 MILLION OR 35 CENTS A SHARE ON SALES OF 224 BILLION IN FISCAL 1993 MEANWHILE THE CINCINNATIBASED HOOK CHAIN HAS BEEN HIT HARD BY THE SLOWDOWN IN PHARMACEUTICALPRICE INFLATION IN ADDITION IT HAS SEEN A DRAMATIC SHIFT FROM PRESCRIPTIONS PAID IN CASH TO THOSE PAID BY THIRDPARTY INSURERS SUCH AS HEALTH MAINTENANCE ORGANIZATIONS WHICH PAY LOWER PRICES IT HAS ABOUT 1200 HOOK'S SUPERX AND BROOKS STORES AND HAD FISCAL 1993 SALES OF 23 BILLION WALGREEN WITH REVENUE LAST YEAR OF 83 BILLION OPERATES 1803 STORES SAM ZELL WHOSE ZELL/CHILMARK FUND LP GROUP OWNS 20 OF REVCO SAID THAT GOLDMAN HAD ENTICED US TO GET INVOLVED AND THAT THE NEGOTIATIONS HAD BEEN GOING ON FOR THE PAST EIGHT TO TWELVE MONTHS THE FIT WAS A NATURAL HE SAID THERE'S A LOT OF CURRENT AND FUTURE CONSOLIDATION REVCO IS EVALUATING A DEFINITIVE FINANCING PACKAGE BUT SAID IT HAS RECEIVED BOTH A DEBTFINANCING COMMITMENT FROM BANQUE PARIBAS AND CONTINENTAL BANK AND A STANDBY PURCHASE COMMITMENT FROM ZELL/CHILMARK FUND PHILIP BEEKMAN HOOK'S PRESIDENT AND CHIEF EXECUTIVE OFFICER COULDN'T BE REACHED FOR COMMENT STANDARD & POOR'S CORP SAID IT PUT REVCO'S SENIOR NOTES ON CREDITWATCH WITH NEGATIVE IMPLICATIONS CITING THE POTENTIAL WEAKENING OF THE COMPANY'S CAPITAL STRUCTURE FOLLOWING THE ACQUISITION ABOUT 140 MILLION OF NOTES CURRENTLY RATED TRIPLEBMINUS ARE AFFECTED THE AGENCY PUT HOOK'S SENIOR NOTES ON CREDITWATCH WITH POSITIVE IMPLICATIONS 9404050153 940405 TRACKING TRAVEL BY JACQUELINE SIMMONS ALONG WITH THE USUAL GROUP TOURS A GROWING NUMBER OF GOLFERS ARE CREATING THEIR OWN INDIVIDUAL GOLF TOURS TO FIT THEIR SCHEDULES PLACES OF INTEREST AND SKILL LEVEL PEOPLE WANT THE FLEXIBILITY AND ABILITY TO CONTROL THEIR AGENDA AND THEY WANT TO BE 100 SURE OF WHAT THEY ARE BUYING SAYS SCOTT DALECIO DIRECTOR OF MARKETING FOR LA QUINTA RESORT AND CLUB AND PGA WEST A LA QUINTA CALIF OPERATOR OF GOLF COURSES AND RESORTS IN THE PALM SPRINGS AREA IN THE US GOLF TOURS TYPICALLY RANGE FROM 150 TO 300 A NIGHT AND INCLUDE MEALS ACCOMMODATION AND SPECIAL ACCESS TO SOME OF THE FINEST COURSES ONE OF THE GREATEST ADVANTAGES TO DESIGNING YOUR OWN GOLF TOUR IS GREATER ACCESS TO THE COURSES OFTEN DIFFICULT FOR THE AVERAGE CONSUMER SAYS ED PERKINS EDITOR OF THE CONSUMER REPORTS TRAVEL LETTER A GOOD GOLF COURSE IS LIKE A FULL AIRPLANE YOU NEED A RESERVATION DAVID GIAMMATTEO COOWNER OF BOSTONBASED GOLF VACATIONS ORGANIZES CUSTOMIZED PACKAGES TO FIT GOLFERS' ITINERARIES AND BUDGETS OF THE APPROXIMATELY 1500 TOURS HE PUT TOGETHER LAST YEAR MOST GOLFERS WENT TO FLORIDA OTHER POPULAR US DESTINATIONS INCLUDE LAS VEGAS PHOENIX AND THE CALIFORNIA COAST FOR EUROPEBOUND GOLFERS TOUR OPERATORS HAIL THE SPORT'S BIRTHPLACE SCOTLAND AS THE NO 1 DESTINATION THE BRITISH OPEN IN JULY WILL DRAW A NUMBER OF ENTHUSIASTS BUYING PACKAGES FOR INSTANCE GOLF INTERNATIONAL HAS PUT TOGETHER A SWANK SIXNIGHT PACKAGE TOUR FOR ABOUT 3000 A PERSON A GROUP OF ABOUT 40 WILL BE FLOWN FROM THEIR EDINBURGH HOTEL TO THE OPEN VIA HELICOPTER AND THEN DROPPED OFF THE NEXT DAY PARTICIPANTS WILL BE AMONG THE FIRST TO TEEOFF ON THE TURNBERRY AILSA GOLF COURSE WHERE THE OPEN IS HELD BUSINESS TRAVELERS AND VACATIONERS ARE REALIZING THERE'S OFTEN MORE THAN JUST JET LAG TO CONQUER WHEN GOING OVERSEAS SO BEFORE LEAVING DOCTORS SUGGEST A CAREFUL REVIEW OF YOUR HEALTH PLAN TO SEE WHAT IT PAYS FOR IF AN EMERGENCY OCCURS DURING A TRIP ABROAD IF THE COVERAGE IS LIMITED YOU MAY WANT TO INVEST IN A TRAVELINSURANCE PRODUCT TYPICALLY SOLD THROUGH TRAVEL AGENTS BUT FIRST CHECK OUT TRAVEL COVERAGE POSSIBILITIES THROUGH CREDIT CARDS BAGGAGE INSURANCE OR A TRIP CANCELLATION PLAN WHICH COVERS MOST MEDICAL EMERGENCIES SAYS JOHN COOK EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF TRAVEL INSURED INTERNATIONAL IN EAST HARTFORD CONN THERE ALSO ARE TRAVELHEALTH GUIDES WHICH TYPICALLY HAVE TIPS ON WAYS TO STERILIZE WATER AND WHAT TO DO IF YOU GET A TOOTHACHE AMONG THEM ARE THE 1994 INTERNATIONAL TRAVEL HEALTH GUIDE BY DR STUART ROSE PRESIDENT OF TRAVEL MEDICINE INC A NORTHAMPTON MASS PROVIDER OF HEALTH INFORMATION AND PRODUCTS FOR OVERSEAS TRAVELERS AND TRAVELERS' HEALTH HOW TO STAY HEALTHY ALL OVER THE WORLD BY DR RICHARD DAWOOD AND FOR TRAVELERS WORRIED ABOUT THE CLEANLINESS OF REMOTE HEALTH CLINICS A NUMBER OF TRAVELHEALTH CLINICS ARE OFFERING KITS TO GUARD AGAINST BLOODRELATED DISEASES INCLUDING HEPATITIS AND HIV THE VIRUS THAT CAUSES AIDS THESE KITS TYPICALLY RETAIL FROM 20 AND UP AND CONTAIN STERILE SYRINGES NEEDLES MEDICATIONS LATEX GLOVES AND OTHER PRODUCTS BUDDY A VERY CONFUSED BALD EAGLE IS LURING TOURISTS TO A SMALL COASTAL ALASKA TOWN SITKA ON BARANOF ISLAND IS HOME TO ABOUT 8500 RESIDENTS INCLUDING BUDDY THE FIVEYEAROLD BIRD IS SAID TO HAVE BEEN DESERTED IN 1989 IN THE SMALL ISLAND VILLAGE OF KAKE BY A HUMAN FAMILY WHEN HE WAS A THREEMONTHOLD FLEDGLING ALONE BUDDY STRAYED INTO A LOCAL PLAYGROUND WHERE ADMIRING CHILDREN PLAYED WITH HIM AND FED HIM ENDLESS AMOUNTS OF JUNK FOOD UNTIL THE DAY BUDDY TRIED TO STEAL A BALL FROM A LITTLE BOY LOCAL AUTHORITIES CAPTURED BUDDY AND HE WAS EVENTUALLY TAKEN TO THE ALASKA RAPTOR REHABILITATION CENTER IN SITKA WHICH SPECIALIZES IN TREATING INJURED BIRDS OF PREY BUT BUDDY'S MALADY WAS DIAGNOSED AS PSYCHOLOGICAL NOT PHYSICAL HE IDENTIFIES WITH HUMANS NOT EAGLES BUDDY'S CARETAKERS CLAIM THAT UNTIL A FEW YEARS AGO THE BIRD PREFERRED WALKING TO FLYING AND CHIPS AND SWEETS OVER RAW FISH RED MEAT AND OTHER TYPICAL EAGLE DELICACIES WE CAN NEVER RETURN HIM TO THE WILD IF WE DID HE'D PROBABLY GO TO THE LOCAL MCDONALD'S OR SOMETHING SIGHS RICHARD GRIFFIN THE CENTER'S DIRECTOR BUDDY IS LOCKED INTO PEOPLE FOR LIFE HE'S EVEN SELECTED A PERSON AS A MATE OUR REHABILITATION TECHNICIAN WHO'S TAKING THIS ALL IN STRIDE BUT TOURIST OFFICIALS SAY BUDDY IS FUELING SITKA'S TRAVEL INDUSTRY THE CITY'S SECONDLARGEST BUSINESS AFTER THE FISHING INDUSTRY SAYS ANNE CHADWICK EXECUTIVE DIRECTOR OF THE SITKA CONVENTION AND VISITORS BUREAU LAST YEAR MORE THAN 175000 TOURISTS VISITED THE CITY BETWEEN MAY AND SEPTEMBER A 4 INCREASE FROM THE SAME PERIOD IN 1992 THE RAPTOR CENTER IS A PRETTY NEW ATTRACTION AND RANKS HIGH ON PEOPLE'S LIST OF THINGS TO SEE THERE'S NO DOUBT THAT BUDDY HAS HELPED GENERATE AWARENESS ABOUT SITKA BALD EAGLES ARE AN ENDANGERED SPECIES UNDER FEDERAL LAW MR GRIFFIN SAYS ABOUT 150000 TRAVELERS HAVE VISITED THE RAPTOR CENTER SINCE BUDDY'S ARRIVAL HE EXPECTS 30000 VISITORS THIS SUMMER ROSEWOOD HOTELS & RESORTS IS HOSTING LITERARY WEEK 1994 IN MAY AT ITS LA SAMANNA RESORT ON ST MARTIN ISLAND IN THE CARIBBEAN WHERE VACATIONERS RUB SHOULDERS WITH AUTHORS SUCH AS JON ROBIN BAITZ ROBERT OLEN BUTLER PETER HEDGES SUSANNA MOORE AND PAUL WATKINS COST 530 PER COUPLE PER DAY FAIRMONT HOTELS IS ADDING A DEDICATED HIGHSPEED MODEM LINE AND JACK IN ITS HOTEL ROOMS IN SAN FRANCISCO CHICAGO AND SAN JOSE ALLOWING GUESTS TO USE THE TELEPHONE WHILE SENDING OR RECEIVING LAPTOP MODEM TRANSMISSIONS ON THE OTHER LINE 9404050152 940405 ABREAST OF THE MARKET STOCKS NOSEDIVE AGAIN BUT FALL IS LESS STEEP THAN MANY EXPECTED BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCKS PLUNGED AFTER ANOTHER FRENZIED DAY OF TRADING THAT DROVE THE DOW JONES INDUSTRIAL AVERAGE TO ITS LOWEST LEVEL IN ALMOST SIX MONTHS THE SELLOFF WHICH WAS WIDELY EXPECTED TURNED OUT TO BE TAMER THAN MANY WERE ANTICIPATING THERE WAS NOTHING APPROACHING PANIC SELLING SAID JAMES MAGUIRE CHAIRMAN OF HENDERSON BROTHERS A SPECIALIST FIRM ON THE NEW YORK STOCK EXCHANGE DESPITE SEVERAL WAVES OF COMPUTERGUIDED SELL PROGRAMS AND CONTINUED SELLING IN THE BOND MARKET THE INDUSTRIAL AVERAGE MANAGED TO FINISH ONLY 4261 POINTS LOWER OR DOWN 117 TO 359335 ITS LOWEST LEVEL SINCE OCT 12 1993 THE STANDARD & POOR'S 500STOCK INDEX DROPPED 685 POINTS OR 15 TO 43892 ITS LOWEST LEVEL SINCE APRIL 29 1993 BUT THE HEAVIEST SELLING WAS RESERVED FOR THE NASDAQ STOCK MARKET THE HOME TO SMALL AND MEDIUMCAPITALIZATION STOCKS THE NASDAQ COMPOSITE INDEX PLUMMETED 1605 POINTS OR 216 TO 72741 ITS LOWEST CLOSING LEVEL SINCE AUG 16 STOCK TRADERS WERE BRACING FOR A VOLATILE DAY AFTER FRIDAY'S SURPRISINGLY STRONG JOBS REPORT SENT THE BOND MARKET INTO A TAILSPIN BECAUSE THE STOCK MARKET WAS CLOSED FRIDAY FOR THE OBSERVANCE OF GOOD FRIDAY YESTERDAY WAS THE FIRST OPPORTUNITY STOCK INVESTORS HAD TO REACT TO THE EMPLOYMENT REPORT THOUGH BONDS WERE STABLE IN THE MORNING STOCK PRICES PLUMMETED MORE THAN 80 POINTS IN THE FIRST HOUR OF TRADING FORCING THE BIG BOARD TO ACTIVATE ITS RESTRICTIONS ON PROGRAM TRADING JUST 10 MINUTES AFTER TRADING STARTED BY NOON THE SELLING HAD SUBSIDED HOWEVER A SHARP RISE IN INTEREST RATES BROUGHT THE SELLERS BACK OUT ONTO THE EXCHANGE FLOOR IN THE AFTERNOON TRIGGERING THE BIG BOARD'S RESTRICTIONS ON PROGRAM TRADING FOR A SECOND TIME AND LATER TRIPPING THE EXCHANGE'S SIDECAR PROCEDURE ANOTHER RULE THAT GOES INTO EFFECT WHEN THE S&P 500 FUTURES FALL BY 12 POINTS YESTERDAY MARKED THE FIRST TIME SINCE OCT 5 1992 THAT THE SIDECAR PROCEDURES HAVE BEEN IMPLEMENTED WHILE CIRCUIT BREAKERS HELPED SLOW THE SELLING SOME ANALYSTS SAY IT'S STILL TOO DANGEROUS FOR INVESTORS TO BE WADING IN YOU DON'T WANT TO BE POLLYANNISH IN THIS ENVIRONMENT SAID WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS I THINK YOU WANT TO SEE THE STOCK MARKET SETTLING DOWN THE FEDERAL RESERVE MOVING RATES HIGHER AND THE DOLLAR GETTING STRONGER BEFORE YOU GET MORE AGGRESSIVE ON STOCKS ON THE BIG BOARD THERE WERE 376 ISSUES ADVANCING AND 2121 DECLINING VOLUME TOTALED 342850000 SHARES COMPARED WITH 398830000 THURSDAY UTILITY STOCKS CONTINUED TO SLIDE ALONG WITH THE BOND MARKET THE DOW JONES UTILITIES AVERAGE PLUNGED 329 OR 168 TO 19299 ITS LOWEST LEVEL SINCE AUG 24 1990 BANKING SECURITIES BROKERAGE COMPANY AND INSURANCE STOCKS ALSO TUMBLED IN TANDEM WITH BONDS NATIONSBANK FELL 1 TO 44 3/4 GENERAL RE 1 5/8 TO 105 3/4 AND MERRILL LYNCH 1 1/2 TO 35 3/4 GRUMMAN LOST 2 7/8 TO 61 11/16 AFTER THE BETHPAGE NY AEROSPACE COMPANY AGREED TO BE ACQUIRED BY NORTHROP FOR 62 A SHARE SOME INVESTORS HAD BET THAT GRUMMAN WOULD DRAW A HIGHER BID MARTIN MARIETTA HAD OFFERED 55 NORTHROP SHARES DROPPED 2 1/4 TO 37 5/8 MARTIN MARIETTA FELL 1 3/8 TO 42 5/8 SUN MICROSYSTEMS SKIDDED 5 3/8 TO 22 ON NASDAQ AFTER ANALYSTS AT MERRILL LYNCH AND PAINEWEBBER DOWNGRADED INVESTMENT RATINGS ON THE STOCK THE COMPUTER WORKSTATION MAKER LATE THURSDAY ESTIMATED ITS REVENUE GROWTH WAS SLOWER THAN ANALYSTS EXPECTED IN THE THIRD QUARTER WHICH ENDED LAST MONTH GENENTECH RALLIED 3 TO 47 LATE IN THE DAY THE COMPANY DISCLOSED CLINICAL RESEARCH DATA SHOWING THAT ITS DRUG PULMOZYME WAS EFFECTIVE IN REDUCING DEATHS FROM CHRONIC BRONCHITIS THE DRUG WAS RECENTLY APPROVED FOR TREATING CYSTIC FIBROSIS WOOLWORTH DROPPED 2 1/8 TO 13 AFTER THE CHAIRMAN AND THE CHIEF FINANCIAL OFFICER OF THE NEW YORK RETAILER TEMPORARILY RELINQUISHED THEIR POSTS WHILE THE COMPANY INVESTIGATES ALLEGED ACCOUNTING IRREGULARITIES THE TWO CHAIRMAN WILLIAM LAVIN AND CHARLES YOUNG FINANCE CHIEF HAVE DENIED ANY WRONGDOING 9404050151 940405 WHO'S NEWS MARTEN TRANSPORT LTD MARTEN TRANSPORT LTD MONDOVI WIS THOMAS J WINKEL A MANAGEMENT AND FINANCIAL CONSULTANT WAS ELECTED A DIRECTOR OF THIS TRUCKING CONCERN FILLING A VACANCY CREATED BY THE DEATH OF THE COMPANY'S FOUNDER AND FORMER CHAIRMAN ROGER R MARTEN 9404050150 940405 INTERNATIONAL THE SCREAM' CASE IS THE VERY PICTURE OF POLICE FRUSTRATION OSLO THIEVES LEFT MANY CLUES BUT DETECTIVES DRAW BLANK IN SEARCH FOR STOLEN ART BY JUDITH VALENTE STAFF REPORTER OF THE WALL STREET JOURNAL OSLO THIS MIGHT BE SOMETHING DETECTIVE SUPERINTENDENT GUNNAR HALSET SAYS RACING DOWN A HALLWAY TO AN INTERROGATION ROOM THE MAN CONVICTED OF STEALING AN EDVARD MUNCH PAINTING IN 1988 HAS COME TO THE STATION WANTING TO TALK IT HAS BEEN MORE THAN A MONTH SINCE THIEVES STOLE MUNCH'S THE SCREAM NORWAY'S MOST FAMOUS PAINTING FROM THE NATIONAL GALLERY IN A 52SECOND CAPER EMBARRASSING NORWEGIAN OFFICIALS ON THE EVE OF THE WINTER OLYMPICS UNFORTUNATELY THE EARFUL PAL ENGER HAS FOR MR HALSET TURNS OUT TO BE A COMPLAINT NOT A CONFESSION HE DECLARES THE 200000 KRONER 27160 REWARD BEING OFFERED FOR THE PAINTING'S RETURN INADEQUATE IT SHOULD BE A MILLION MR ENGER SAYS THE SEARCH FOR THE SCREAM HAS TAKEN MORE TWISTS AND TURNS THAN A VAN GOGH BRUSH STROKE AND THIS DEADEND THE LATEST IN A STRING OF FALSE LEADS AND HUMILIATIONS IS EMBLEMATIC OF THE PROBLEMS THAT NORWAY AND OTHER COUNTRIES ENCOUNTER IN TRYING TO RECOVER FAMOUS WORKS OF ART SO FAR POLICE HAVE CRISSCROSSED OSLO SCOURED DOZENS OF STOLENCAR RECORDS INTERVIEWED 50 CURRENT AND FORMER MUSEUM EMPLOYEES PLACED MORE THAN 100 PHONE CALLS AROUND THE WORLD AND EVEN CONTEMPLATED EMPLOYING A PSYCHIC THOUGH FOUR DETECTIVES ARE INVESTIGATING THE THEFT POLICE AREN'T MUCH CLOSER TO SOLVING IT THAN THEY WERE WHEN THEY BEGAN THE LATEST WRINKLE IS A PURPORTED EFFORT BY WEALTHY NORWEGIAN BUSINESSMEN TO BUY THE PAINTING BACK FROM THE THIEVES THROUGH MYSTERIOUS MIDDLEMEN A PREVIOUS EFFORT FIZZLED WHEN THOSE CLAIMING TO BE THE THIEVES DECLINED TO PROVIDE A POLAROID PICTURE OF THE PAINTING BUT SUCH DIFFICULTIES ARE USUALLY THE CASE IN THE WORLD OF ART THEFT STEALING ART EVEN FROM SUPPOSEDLY SECURE MUSEUMS CAN BE ALMOST AS EASY AS SWIPING A CANDY BAR FROM THE CORNER NEWSSTAND RECOVERING THE WORKS IS ANOTHER MATTER AS MUCH AS 10 BILLION IN ART GETS STOLEN EVERY YEAR FROM MUSEUMS PRIVATE HOMES AND GALLERIES ART SPECIALISTS SAY BUT LESS THAN 10 IS RECOVERED POLICE STILL ARE SEARCHING FOR EXAMPLE FOR THE TWO REMBRANDTS AND A VERMEER THAT THIEVES DISGUISED AS COPS STOLE ONE NIGHT IN APRIL 1990 FROM BOSTON'S GARDNER MUSEUM JUST LAST JANUARY BURGLARS MADE OFF WITH A 500000 PICASSO FROM CHICAGO'S ROBERT GRAY GALLERY YOU'D THINK IT WOULD BE HARD FOR A THIEF TO SELL A STOLEN PAINTING AS WELLKNOWN AS THE SCREAM NOT SO SAYS MICHAEL LAPE OF THE INTERNATIONAL REGISTRY OF ANTIQUES & FINE ART IN ROXBURY CONN THEY CAN JUST WRAP IT UP PUT IT IN A FEDERAL EXPRESS PACKAGE AND THE NEXT PERSON TO SEE THAT PAINTING IS THE PERSON WHO RECEIVES THAT PACKAGE IN THE MAIL MR LAPE SAYS MOST SUCH ART ENDS UP IN PRIVATE COLLECTIONS ART EXPERTS SAY THE LAW MAKES IT DIFFICULT TO ESTABLISH CLEAR OWNERSHIP OF SOME PAINTINGS MOREOVER MUSEUMS HAVE SO MUCH ART LYING AROUND IN STORAGE OFFICIALS OFTEN DON'T REALIZE A WORK IS MISSING UNTIL LONG AFTERWARD DESPITE THE MAGNITUDE OF THE PROBLEM JUST A FEW CITIES INCLUDING LONDON ROME NEW YORK AND LOS ANGELES HAVE DESIGNATED ART DETECTIVES SO MOST CASES FALL TO FOLKS LIKE MR HALSET WHO CHASES ART BANDITS IN BETWEEN OTHER ROUTINE DUTIES ROUSTING SHOPLIFTERS FOR EXAMPLE MR HALSET WORKED ON JUST ONE ART THEFT CASE BEFORE WHEN MR ENGER STOLE MUNCH'S THE VAMPIRE BUT THAT WAS EASY SIX MONTHS AFTER THE ROBBERY MR ENGER TURNED UP AT THE POLICE HOUSE WITH THE PAINTING SAYING PLEASE TAKE THIS BUT THE SCREAM IS A PARTICULARLY EMBARRASSING CASE SECURITY CAMERAS CAPTURED THE ROBBERY ON VIDEO BUT IT APPARENTLY ESCAPED THE ATTENTION OF THE SOLE SECURITY GUARD ON DUTY WHO THOUGHT THE ALARM THE BURGLAR TRIGGERED WAS FALSE WHAT'S MORE THIS IS THE FIFTH TIME IN AS MANY YEARS THAT ART THIEVES HAVE TRIED OR SUCCEEDED IN SWIPING ONE OF NORWAY'S NATIONAL ART TREASURES ONE EXAMPLE AN OSLO POLICE TEAM IS STILL SEARCHING FOR STUDIO PORTRAIT ANOTHER MUNCH PAINTING TAKEN FROM THE NATIONAL GALLERY LAST AUGUST DURING REGULAR OPENING HOURS THE THIEF APPARENTLY STASHED THE WORK UNDER A JACKET AND STROLLED OUT THE MAIN DOOR THE LATEST THEFT HAS POLICE WORRIED THAT POOR NORWAY WILL BECOME THE LAUGHINGSTOCK OF THE ART WORLD WE ARE A SMALL COUNTRY FOUR MILLION PEOPLE AND YET WE CANNOT SEEM TO HOLD ON TO OUR ART MR HALSET LAMENTS WITH THE SCREAM ACCORDING TO THE VIDEO OF THE CRIME AT 17 SECONDS AFTER 630 AM ON FEB 12 TWO PEOPLE CARRYING A LADDER RACED UP TO ONE OF THE MUSEUM'S LARGE ROMANESQUE WINDOWS ONE SCAMPERED UP THE LADDER TO THE WINDOW LEDGE PERHAPS BECAUSE THERE WAS SNOW ON THE LEDGE THE ROBBER SLIPPED AND FELL ABOUT 10 FEET BUT THE THIEF TRIED AGAIN AND THIS TIME BROKE OPEN THE WINDOW AND BOLTED INSIDE THE MUSEUM THE VIDEO LATER SHOWED THE ROBBER SLIDING THE SCREAM DOWN THE LADDER TO A COMPANION IN THE STREET THE THIEVES EVEN HAD TIME TO LEAVE A MESSAGE A POSTCARD DEPICTING THREE MEN SHARING A LAUGH FROM A PAINTING APTLY TITLED THE GOOD STORY ON THE BACK SIDE IN PENCIL THE ROBBERS HAD SCRIBBLED A THOUSAND THANKS FOR BAD SECURITY ALONG WITH AN OBSCENE GESTURE AT FIRST IT SEEMED THE THIEVES HAD LEFT PLENTY OF CLUES THE ALUMINUM LADDER THE ROBBERS USED CONTAINED THE NAME OF A CONSTRUCTION COMPANY WITHIN HOURS POLICE TRACED THE LADDER TO A FIRM DOING WORK ON A NEARBY BUILDING ONLY TO FIND THE COMPANY HAD REPORTED THE LADDER STOLEN THE NIGHT BEFORE THE ROBBERY POLICE FOUND THE CLIPPERS THE THIEF USED TO CUT THE PAINTING'S WIRES STUCK IN THE CURTAINS TECHNICIANS DIDN'T FIND FINGERPRINTS ON THEM OR ON ANYTHING ELSE IN THE MUSEUM BUT THE CLIPPERS WERE STAMPED WITH THE NAME OF THEIR WEST GERMAN MANUFACTURER MR HALSET CONTACTED THE COMPANY BUT THE MANUFACTURER SAID FAR TOO MANY IMPORTERS PURCHASED THAT TYPE OF CLIPPER USED FOR CUTTING ROOFING TO NARROW IT DOWN TO A FEW STORES THE POSTCARD MR HALSET PHONED UP THE FIRM THAT MADE IT WHICH WAS LISTED ON THE BACKSIDE OF THE CARD BUT THE MANUFACTURER SAID 1600 COPIES OF THE CARD WERE ON SALE AT HUNDREDS OF SHOPS AND KIOSKS THROUGHOUT OSLO AMATEUR SLEUTHS GOT INTO THE ACT MR HALSET GOT A CALL FROM A PSYCHIC WHO OFFERED TO DANGLE A RING OVER A MAP OF NORWAY TO LOCATE THE PAINTING A MAN CALLED TO SAY HIS WIFE HAD A VISION OF THE PAINTING IN A DREAM HIDDEN IN A GRAY HOUSE ON A HILL SO DID PUBLICITY HOUNDS A LOCAL RIGHTTOLIFE ACTIVIST CALLED A NEWS CONFERENCE SAYING HE WOULD PASS ON INFORMATION ABOUT THE SCREAM IF A TELEVISION STATION WOULD BROADCAST A FILM SHOWING WHAT HAPPENS TO AN ABORTED FETUS BUT PRESSED THE REVEREND ADMITTED HE REALLY WAS REFERRING TO THE FETUS'S SCREAM IT WAS A TRICK MR HALSET SAYS ANGRILY UNLESS THE CURRENT NEGOTIATIONS TO BUY BACK THE PAINTING PROVE TO BE GENUINE THE INVESTIGATION WILL LUMBER ON FOR NOW THE GALLERY HAS REINFORCED ITS WINDOWS AND HIRED A BRITISH SECURITY CONSULTANT TO RECOMMEND SECURITY CHANGES AS FOR MR HALSET HE SAYS HIS FRUITLESS SEARCH SO FAR MAKES HIM WANT TO WELL SCREAM 9404050149 940405 ENTERPRISE SMALL FASTGROWTH FIRMS FEEL CHILL OF SHAREHOLDER SUITS WARY OF SURPRISES HIGHTECH COMPANIES KEEP CLOSER EYE ON DISCLOSURE BY UDAYAN GUPTA AND BRENT BOWERS STAFF REPORTERS OF THE WALL STREET JOURNAL THE RASH OF CLASSACTION SHAREHOLDER LAWSUITS OVER THE PAST FEW YEARS IS CHANGING THE WAY SMALL FASTGROWTH COMPANIES DEAL WITH THE INVESTING PUBLIC IT IS ALSO TURNING THEIR CHIEF EXECUTIVES INTO WORRYWARTS THE THREAT OF SHAREHOLDER LAWSUITS BREEDS PARANOIA AND TAKES TIME AWAY FROM CORPORATE MANAGEMENT SAYS ERIC GILER PRESIDENT OF BROOKTROUT TECHNOLOGY INC WALTHAM MASS WE SPEND A LOT OF TIME WORRYING ABOUT THE ASPECTS OF BEING PUBLIC MUCH MORE THAN EVER BEFORE THOUGH BROOKTROUT WAS SPARED LITIGATION OVER THE LOSS ITS STOCK DROPPED NEARLY 10 AFTER FIRSTQUARTER RESULTS LAST YEAR FELL SHORT OF ANALYSTS' EXPECTATIONS MANAGING THE DISCLOSURE OF NEWS IS PARTICULARLY TRICKY AT SMALL HIGHTECHNOLOGY AND BIOTECHNOLOGY COMPANIES BECAUSE THEIR FORTUNES ARE INHERENTLY UNPREDICTABLE AND NEGATIVE EARNINGS SURPRISES ARE THEREFORE COMMON COMPANY SHARES TEND TO TRADE AT HIGH PRICETOEARNINGS RATIOS REFLECTING INVESTOR HOPES FOR A BIG PAYOFF FOR THE SAME REASON THOUGH THE STOCK PRICE CAN NOSEDIVE AT THE FIRST WHIFF OF A SETBACK THIS VOLATILITY HAS PROMPTED A SURGE OF CLASSACTION SHAREHOLDER SUITS LATELY MOSTLY CHARGING THAT COMPANIES WITHHELD OR MISREPRESENTED INFORMATION TO INVESTORS IN A NUMBER OF INSTANCES THESE SUITS HAVE UNCOVERED GENUINE WRONGDOING LEGAL AUTHORITIES AND SHAREHOLDER ADVOCATES SAY THERE HAS BEEN SUBSTANTIAL MISREPRESENTATION IN SOME SMALL COMPANIES' STATEMENTS TO INVESTORS THE THREAT OF SHAREHOLDER LAWSUITS CHECKS THE TENDENCY OF ENTREPRENEURS TO PAINT TOO ROSY A PICTURE BUT THE THREAT IS ALSO A BURDEN TO COMPANIES MR GILER SAYS BROOKTROUT IS SPENDING MORE TIME WITH ANALYSTS EXPLAINING HOW ITS SALES CYCLE WORKS IF AN ANALYST CALLS WE WANT TO MAKE ABSOLUTELY SURE THAT HIS QUESTIONS ARE ANSWERED HE ADDS OTHER COMPANIES GO FURTHER CENTOCOR INC A MALVERN PA BIOTECHNOLOGY CONCERN SAYS IT NO LONGER MAKES EARNINGS PROJECTIONS AND NO LONGER COMMENTS ON DRUGS THAT IT IS DEVELOPING UNTIL ITS RESEARCH RESULTS ARE PUBLISHED IN ACADEMIC JOURNALS THE COMPANY WHICH HAS HAD HIGHLY PUBLICIZED PROBLEMS WITH A SEPTICSHOCK DRUG SETTLED SEVERAL CLASSACTION SHAREHOLDER SUITS IN THE PAST TWO YEARS OTHER BIOTECH COMPANIES THAT HAVE BEEN SUED SAY THEY TOO ARE LESS FORTHCOMING ABOUT WHAT WORK THEY ARE DOING IN THEIR LABORATORIES FOR FEAR THEIR COMMENTS MIGHT BE MISCONSTRUED ONE WEST COAST COMPANY WHICH REQUESTS ANONYMITY SAYS IT WILL TALK OPENLY ONLY WITH ITS LARGEST SHAREHOLDERS AND WITH ANALYSTS DISCLOSURE OF CORPORATE INFORMATION IS ONE OF THE FEW THINGS THAT TOP MANAGEMENT DOESN'T DELEGATE SAYS BARUCH LEV A PROFESSOR AT THE HAAS SCHOOL OF BUSINESS AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY IT'S ALWAYS THE CEO OR THE CFO SURROUNDED BY LAWYERS ANOTHER SYMPTOM OF GROWTH COMPANIES' SKITTISHNESS IS THE GROWING LITANY OF CAVEATS AND WARNINGS ABOUT POTENTIAL RISKS THAT THEY WRITE INTO THEIR PROSPECTUSES WHEN THEY SELL STOCK ENTREPRENEURS SAY SOMETIMES COMPANIES CAN BE SUED FOR FAILING TO ANTICIPATE CERTAIN EVENTS AS REGENERON PHARMACEUTICALS INC OF TARRYTOWN NY LEARNED LAST MONTH ON MARCH 15 REGENERON ANNOUNCED THAT IN CLINICAL TRIALS ITS DRUG TO TREAT LOU GEHRIG'S DISEASE FAILED TO SHOW EFFICACY AND HAD SOME UNPLEASANT SIDE EFFECTS INVESTORS DUMPED REGENERON'S STOCK KNOCKING ITS PRICE DOWN 33 TO 875 FROM 13125 BY DAY'S END WITHIN A WEEK PLAINTIFFS' ATTORNEYS HAD FILED THREE CLASSACTION SUITS THE COMPANY SAYS IT EXPECTS TWO MORE SUITS THE COMPLAINTS SAY THAT THE COMPANY SHOULD HAVE BEEN AWARE OF THE PROBLEMS WITH ITS DRUGS AND DISCLOSED THE RISKS EARLIER BUT A SPOKESMAN FOR REGENERON POINTS OUT THAT IN THE DOUBLEBLIND STUDIES NOT EVEN THE RESEARCHERS COULD KNOW THE RESULTS UNTIL COMPLETE DATA WERE IN REGENERON SAYS IT WON'T SETTLE BUT IT IS ANGRY ABOUT THE CLIMATE OF FEAR UNDER WHICH IT HAS TO OPERATE IT IS VERY UPSETTING AND DEMORALIZING TO PEOPLE WHO WORK HERE SAYS LEONARD SCHLEIFER THE COMPANY'S CHAIRMAN FEAR OF LITIGATION CAN HURT THE PUBLIC TOO SOME SPECIALISTS SAY I WORRY THAT THESE CLASSACTION SUITS WILL CHILL IN SOME WAY THE ATTEMPTS BY BIOTECHNOLOGY COMPANIES TO DEVELOP TREATMENTS FOR SUCH MAJOR DISEASES AS ALS THE TECHNICAL TERM FOR LOU GEHRIG'S DISEASE SAYS ROBERT ABENDROTH A TRUSTEE OF THE RESEARCH COMMITTEE OF THE ALS ASSOCIATION OF AMERICA IN MILWAUKEE SOME PEOPLE BLAME WALL STREET FOR FUELING THE LITIGATION THEY FRET THAT TOO MANY BIG INVESTMENT FUNDS AND INSTITUTIONAL INVESTORS IGNORE FUNDAMENTALS AND DUMP STOCKS IF THE NUMBERS FALL SHORT OF EXPECTATIONS WE HAVE GONE INTO A SCREEN' WORLD WHERE FUND MANAGERS BELIEVE THAT ALL THE ECONOMIC AND FINANCIAL REALITY IS ON THEIR COMPUTER SCREENS SAYS A MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL SERVICES INC IN SUMMIT NJ AND CURRENT PRESIDENT OF THE NEW YORK SOCIETY OF SECURITIES ANALYSTS COMPANIES GET PICKED UP WHEN SOMETHING STARTS TO ACCELERATE WHETHER IT BE EARNINGS OR REVENUES OR RETURN ON EQUITY OR STOCK PRICE AND THEY GET DUMPED WHENEVER THEY VIOLATE THAT TREND ADDS ARTHUR MARKS GENERAL PARTNER AT NEW ENTERPRISE ASSOCIATES A BALTIMORE VENTURECAPITAL FIRM PRICES ARE MORE SUSCEPTIBLE TO NEWS THAN THEY WERE JUST A COUPLE OF YEARS AGO FORCING COMPANIES TO SPEND MORE TIME DETERMINING WHAT IS RELEVANT THAT SHOULD BE ANNOUNCED EVEN SO CRITICS SAY MANY CLASSACTION LAWSUITS AGAINST SMALL HIGHFLYING COMPANIES ARE FRIVOLOUS THE LAW FIRMS' AIM TOO OFTEN IS TO FORCE THE COMPANIES TO SETTLE QUICKLY RATHER THAN GET EMBROILED IN AN EXTENDED JURY TRIAL THEY SAY INDEED MOST COMPANIES DO SETTLE FOR EXAMPLE A STUDY LAST YEAR BY NATIONAL ECONOMIC RESEARCH ASSOCIATES INC FOUND THAT OF 165 CASES RESOLVED IN THE YEAR ENDED JUNE 1993 136 WERE SETTLED 24 WERE DISMISSED AND ONLY FIVE RESULTED IN JUDGMENTS THE STUDY ALSO SHOWED A SHARP 22 INCREASE IN THE TOTAL NUMBER OF CASES RESOLVED TO 165 FROM 135 A DISPROPORTIONATELY LARGE NUMBER OF SECURITIES CLASSACTION SETTLEMENTS CONTINUE TO BE SUITS FILED AGAINST HIGHTECHNOLOGY FIRMS THE STUDY NOTED LATE LAST MONTH SENS PETE DOMENICI R NM AND CHRISTOPHER DODD D CONN INTRODUCED LEGISLATION TO CURB SUCH ABUSES SEN DOMENICI SAID THE BILL WAS AIMED AT A LITIGATION MACHINE THAT CRUSHES ALL INITIATIVE TO DO BUSINESS AND THAT IS ESPECIALLY HARMFUL TO HIGHTECHNOLOGY COMPANIES 9404050148 940405 AIG'S COMMONSTOCK BUYBACK NEW YORK AMERICAN INTERNATIONAL GROUP INC SAID IT PURCHASED 1040000 OF ITS COMMON SHARES ON THE OPEN MARKET IN THE FIRST QUARTER UNDER A 15 MILLIONSHARE AUTHORIZATION IN SEPTEMBER 1990 THE INSURANCE COMPANY HAS REPURCHASED SLIGHTLY MORE THAN THREE MILLION SHARES ADJUSTED FOR A 1993 STOCK SPLIT THE COMPANY HAD ABOUT 317 MILLION AVERAGE SHARES OUTSTANDING AT YEAR END 9404050147 940405 NOLAND'S SALES INCREASE NEWPORT NEWS VA NOLAND CO SAID TOTAL MARCH SALES INCREASED 14 TO 374 MILLION FROM 327 MILLION IN MARCH 1993 THE DISTRIBUTOR OF PLUMBING HEATING ELECTRICAL AND INDUSTRIAL PRODUCTS SAID FIRSTQUARTER SALES INCREASED 10 TO 971 MILLION FROM A YEAR EARLIER NOLAND WHICH ALSO DISTRIBUTES DOMESTIC WATER SYSTEMS OPERATES 94 BRANCHES IN 14 SOUTHERN STATES 9404050146 940405 WHO'S NEWS VIGORO CORP VIGORO CORP CHICAGO CLAYTON K YEUTTER FORMER US SECRETARY OF AGRICULTURE AND CURRENTLY AFFILIATED WITH HOGAN & HARTSON A WASHINGTON DC LAW FIRM WAS NAMED A DIRECTOR OF THIS PRODUCER OF POTASH NITROGENBASED FERTILIZER AND RELATED PRODUCTS BOOSTING THE BOARD TO 14 9404050145 940405 FIDELITY RETAINS INVESTMENT BANKER ON MACY HOLDINGS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL FIDELITY INVESTMENTS HIRED INVESTMENT BANKER BRUCE WASSERSTEIN TO REPRESENT ITS MUTUAL FUNDS' HOLDINGS OF RH MACY & CO BANK DEBT THE ACTION DISCLOSED BY PEOPLE FAMILIAR WITH THE MATTER SUGGESTS THAT FIDELITY NOW IS ACTIVELY SEEKING A SALE OF THE RETAILER WHICH HAS BEEN MIRED IN CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS SINCE JANUARY 1992 IT'S A SHOT ACROSS MACY'S BOW SAID A MONEY MANAGER FAMILIAR WITH FIDELITY'S STRATEGY IT ALSO SPELLS THE LIKELY END OF ANY PROSPECT OF A JOINT REORGANIZATION PLAN BETWEEN MACY AND FIDELITY A LARGE CREDITOR OF THE NEW YORK RETAILER FOR A TIME FIDELITY WAS WORKING WITH MACY TO CREATE A PLAN THAT WOULD ALLOW THE RETAILER TO REMAIN INDEPENDENT THE MUTUAL FUND COMPANY'S CHANGE OF HEART INCREASES THE LIKELIHOOD THAT MACY WILL BE SOLD RATHER THAN EMERGE FROM BANKRUPTCY COURT ON ITS OWN THAT'S BECAUSE FIDELITY HOLDS 490 MILLION OF MACY BANK DEBT A POSITION BIG ENOUGH TO BLOCK ANY REORGANIZATION PLAN IT DOESN'T LIKE MACY HAD NO COMMENT MR WASSERSTEIN IS EXPECTED TO LOOK FOR BIDDERS THAT MIGHT BE INTERESTED IN ALL OR PART OF MACY OPENING DOORS THAT FIDELITY COULDN'T EASILY OPEN BY ITSELF FOR EXAMPLE A TAKEOVER OF MACY BY FEDERATED DEPARTMENT STORES INC WHICH CONTROLS A 4493 MILLION STAKE OF MACY DEBT AND HAS ANNOUNCED ITS INTENTION TO MERGE WITH MACY MIGHT LEAD TO A SALE OF SOME MACY STORES TO STILL ANOTHER DEPARTMENT STORE CHAIN SOME PEOPLE CLOSE TO THE SITUATION THEORIZE FIDELITY APPROACHED MR WASSERSTEIN A FEW WEEKS AGO ABOUT TAKING THE ASSIGNMENT AND HE BEGAN WORK ON THE PROJECT LAST WEEK MR WASSERSTEIN WILL BE PAID A RETAINER PLUS AN ADDITIONAL SUM DEPENDING ON THE OUTCOME CYRUS VANCE THE COURTAPPOINTED MEDIATOR IN MACY'S PROCEEDINGS HAD HOPED THE PARTIES WOULD AVOID DRASTIC ACTIONS WHILE MACY PITCHED TO CREDITORS THE PLAN IT UNVEILED IN LATE MARCH FIDELITY DOESN'T LIKE THAT PLAN WHICH IT SEES AS DISTRIBUTING TOO MUCH VALUE TO UNSECURED CREDITORS 9404050144 940405 INDUSTRY FOCUS JAPANESE BANKS DIVERGE INTO THE STRONG AND THE WEAK TOTAL DEBT WRITEOFFS OF 28 BILLION ARE EXPECTED FOR LATEST FISCAL YEAR BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S BANKING HERD IS BREAKING UP INTO A HANDFUL OF WINNERS AND A MUCHBIGGER GROUP OF ALSORANS FOR THE YEAR ENDED THURSDAY JAPAN'S MAJOR BANKS WHICH INCLUDE MANY OF THE WORLD'S BIGGEST ARE EXPECTED TO WRITE OFF A STAGGERING 28 BILLION IN BAD DEBTS THE TOTAL BY FAR A RECORD FOR JAPAN UNDERSCORES A SHIFT THAT IS CHANGING THE FACE OF JAPAN'S BANKING INDUSTRY SUDDENLY NOT ALL JAPANESE BANKS LOOK THE SAME IN THE TWO DECADES SINCE MOODY'S JAPAN KK THE LOCAL ARM OF MOODY'S INVESTORS SERVICE INC HAS RATED BANK CREDITWORTHINESS HERE WE'VE NEVER SEEN THE KIND OF VARIATION NOW EMERGING SAYS SHINJI OKABE ASSISTANT VICE PRESIDENT THE REASON IS SIMPLE STRONGER BANKS ARE PUTTING THEIR SHARE OF BAD LOANS BEHIND THEM MUCH MORE QUICKLY THAN ARE THE OTHERS THESE BANKS WHICH INCLUDE MITSUBISHI BANK LTD SANWA BANK LTD INDUSTRIAL BANK OF JAPAN LTD AND BANK OF TOKYO LTD ALL GET HIGHQUALITY DOUBLEA3 RATINGS FROM MOODY'S JAPAN SUMITOMO BANK LTD WHICH MANY WESTERN BANKERS THINK WILL ALSO MOVE QUICKLY AHEAD CARRIES A SLIGHTLY LOWER SINGLEA1 MOODY'S RATING EXPECTED LOANLOSS PROVISIONS WILL CRIMP EARNINGS THIS YEAR AND SOME RATINGS MAY STAY BELOW FORMER PEAK LEVELS LAST WEEK STANDARD & POOR'S LTD LOWERED DEBT RATINGS FOR MITSUBISHI TO DOUBLEAMINUS FROM DOUBLEA AND BANK OF TOKYO TO SINGLEAPLUS FROM DOUBLEAMINUS DUE TO BAD LOANS BUT S&P ALSO SAID THAT MITSUBISHI REMAINS AMONG THE BEST OF THE JAPANESE BANKS AND THAT BANK OF TOKYO COMPARES FAVORABLY TO MOST OF ITS DOMESTIC PEERS MOODY'S HAS NO PLANS AT PRESENT TO MATCH S&P'S MOVE OVER THE LONGER TERM THE GOOD BANKS SHOULD MOVE STRONGLY INTO THE BLACK A FEW MOREPROFITABLE BANKS WILL EMERGE IN THE FUTURE MR OKABE SAYS THEN THERE ARE THE LOSERS ANALYSTS SAY MANY STRUGGLING INSTITUTIONS ARE FOUNDERING IN THEIR DEBTS EVEN THESE BANKS ARE BIG PLAYERS BY WORLD STANDARDS THE THREE WORSTRATED MAJOR BANKS HAVE COMBINED ASSETS GREATER THAN ANY NONJAPANESE BANK BUT THEY DON'T HAVE THE CAPITAL OR THE EARNINGS TO CLEAN UP THEIR BALANCE SHEETS THEY ARE SELLING US SECURITIES AND REAL ESTATE IN A VAIN ATTEMPT TO BRIGHTEN THEIR BALANCE SHEETS ANALYSTS SAY BUT ULTIMATELY THE ONLY ANSWER MAY BE CONSOLIDATION THE SEPARATION OF THE WINNERS FROM THE LOSERS SAYS A LOT ABOUT HOW JAPAN IS CHANGING THESE DAYS NOT ONLY IN BANKING BUT ACROSS THE ECONOMIC LANDSCAPE HARD TIMES ARE CREATING UNPRECEDENTED DIFFERENCES BETWEEN COMPANIES THAT CAN AND CAN'T ADAPT TO A HARSHER CLIMATE OF INCREASED COMPETITION AND MORE DEREGULATION THE LONG DEBT WORKOUT IS WORRYING JAPANESE BUREAUCRATS SINCE IT'S A DAMPER ON JAPAN'S ANEMIC ECONOMY IF BANKS DON'T WRITE OFF BAD DEBTS FASTER THEIR INTERNATIONAL COMPETITIVENESS WILL DECLINE BANK OF JAPAN GOVERNOR YASUSHI MIENO RECENTLY TOLD A GATHERING OF BUSINESS LEADERS JAPANESE BANKS USED TO BE A UNIFORM PACK IN THE WORLD'S EYES UNDERCUTTING FOREIGN COMPETITION AND SNAPPING UP BLUECHIP INVESTMENTS TROPHY OFFICE BUILDINGS AND US GOVERNMENT DEBT OTHER US AND EUROPEAN BANKS USED TO COME CAP IN HAND PITCHING LOAN SYNDICATIONS COUNDERWRITINGS AND OTHER JOINT FINANCING PROJECTS BUT THESE DAYS US BANKERS PICK WHICH BANKS THEY WANT AS LONGTERM PARTNERS AND WHICH THEY'LL KEEP ON A SHORT CREDIT LEASH INDEED GOLDMAN SACHS CORP IN WHICH SUMITOMO BOUGHT A 125 NONVOTING STAKE IN 1986 IS TRYING TO SELL JAPANESE BANKING REGULATORS ON A SCHEME TO HELP THE WEAKER BANKS OUT OF THEIR PROBLEMS AND THE REGULATORS ARE LISTENING GOLDMAN HOPES TO CAPTURE A BIG CHUNK OF THE TRADING IN A JAPANESE DEBT MARKET AND HAS ALSO BEEN SKETCHING OUT ITS PLANS TO BIG FOREIGN INVESTORS THOUGH THE INVESTMENT BANK DECLINES TO COMMENT ON ITS PLANS AT THE MINISTRY OF FINANCE THOUGH BUREAUCRATS SIT FOR GOLDMAN'S TUTORIALS ON DEBT SECURITIZATION A WAY OF SELLING LOANS THAT ADDS LIQUIDITY TO A BANK'S BALANCE SHEET AND THAT CAN BE USED TO ELIMINATE BAD DEBT THE BUREAUCRATS THINK SECURITIZATION WILL PROVE HARD TO DO IN JAPAN SINCE COMPANIES FLINCH AT REVEALING THEIR BALANCE SHEETS INSTEAD QUIETLY EXECUTED MERGERS AMONG THE WEAKER BANKS ALONG WITH POTENTIAL GOVERNMENT RESCUES SEEM MORE LIKELY ALICIA OGAWA A BANK ANALYST WITH SALOMON BROTHERS ASIA LTD THINKS MERGERS AMONG JAPAN'S SEVEN TRUST BANKS WHICH MANAGE PENSIONS BUT DO LITTLE DOMESTIC LENDING ARE LIKELY THE AVERAGE TRUST BANK NOW REPRESENTS 1 OR LESS OF DOMESTIC PRIVATESECTOR LENDING SHE SAYS HOW LONG CAN THE MINISTRY OF FINANCE JUSTIFY KEEPING THEM ALL MS OGAWA ALSO THINKS THE JAPANESE GOVERNMENT WILL BE FORCED TO BUOY THE LAND MARKET SO WEAKER BANKS CAN SELL SOME COLLATERAL IN ANY EVENT JAPANESE BANKERS ARE BRACING FOR SWEEPING CHANGE JAPAN HAS 21 MAJOR BANKS NOW NOTES KIYOSHI MOROFUSHI GENERAL MANAGER OF ACCOUNTING AT BANK OF TOKYO BUT ONLY FIVE OR SIX MAJOR BANKS ARE NECESSARY FOR INTERNATIONAL COMPETITION TOO MANY BANKS HE SAYS KEEPS PROFITABILITY LOW BANKS CAN'T OFFICIALLY DISCLOSE NEW RESERVES BEFORE EARNINGS ARE ANNOUNCED IN MAY MANY BANKERS HOWEVER PRIVATELY CONFIRM LOCAL REPORTS THAT THE 11 MAJOR CITY BANKS WILL TOGETHER WRITE OFF ABOUT 19 BILLION IN NONPERFORMING DEBTS WHILE THREE GIANT LONGTERM CREDIT BANKS TACKLE 5 BILLION AND THE COUNTRY'S SEVEN TRUST BANKS WRITE OFF 4 BILLION IN NONPERFORMING LOANS MR MOROFUSHI SAYS THIS ROUND OF DEBT CANCELLATIONS WILL LEAVE BANK OF TOKYO FOR INSTANCE WITH LESS THAN HALF THE 34 BILLION IN NONPERFORMING LOANS IT ANNOUNCED LAST SEPTEMBER AT THE OTHER END OF THE SCALE WITH MOODY'S MINIMUM INVESTMENT GRADE RATINGS OF BAA2 ARE YASUDA TRUST NIPPON CREDIT BANK LTD AND HOKKAIDO TAKUSHOKU BANK LTD FOR THE PERIOD JUST ENDED YASUDA TRUST HOPES TO REPEAT THE 188 MILLION WRITEOFF IT MANAGED LAST SEPTEMBER A FRACTION OF YASUDA'S 41 BILLION IN DISCLOSED NONPERFORMING ASSETS AT YASUDA SAYS SPOKESMAN KAZUMA OE WE WOULD LIKE TO KNOW WITHIN TWO OR THREE YEARS WHEN WE CAN FINISH THIS PROCESS WHY DON'T SLOW BANKS MOVE QUICKER AND DECLARE LOSSES TO WIPE OUT DEBT IT COULD BE SIMPLE FEAR A LOT OF MANAGERS ARE WORRIED ABOUT THE EFFECT ON DEPOSITORS IF A FULL PORTFOLIO OF BAD ASSETS IS DECLARED SAYS TOSHIO KOYANO GENERAL MANAGER AT THE RESEARCH ARM OF DAIICHI KANGYO BANK LTD 9404050143 940405 SMALL STOCK FOCUS SHARES SKID FOR 7TH STRAIGHT SESSION PUMMELED BY SURGING YIELDS ON BONDS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK BONDS KEPT THEIR STRANGLEHOLD ON EQUITY PRICES SENDING SMALLCOMPANY STOCKS TUMBLING FOR A SEVENTH STRAIGHT DAY SMALLCAPITALIZATION STOCKS AS MEASURED BY THE RUSSELL 2000 INDEX TUMBLED IN ANOTHER VOLATILE SESSION DRIVEN BY RISING RATES THE BAROMETER SLID 402 POINTS OR 16 TO 24704 ITS LOWEST CLOSING LEVEL SINCE NOV 22 THE NASDAQ COMPOSITE INDEX PLUMMETED 1605 POINTS OR 22 TO 72741 ITS WEAKEST CLOSE SINCE AUG 16 WHEN IT ENDED AT 72689 BOTH KEY INDEXES FELL TO THEIR LOWS FOR THE DAY AFTER THE NEW YORK STOCK EXCHANGE'S UPTICK RULE TO RESTRICT PROGRAM TRADING WAS ACTIVATED THE DOW JONES INDUSTRIAL AVERAGE DOVE 80 POINTS BUT ULTIMATELY RECOVERED NEARLY HALF ITS LOSS TO CLOSE WITH A DEFICIT OF ABOUT 43 POINTS LATER THE RULE KICKED IN FOR A SECOND TIME AS DID THE BIG BOARD'S SIDECAR PROCEDURE ANOTHER MOVE TO RESTRICT PROGRAMS FOLLOWING A STEEP DROP IN STOCKINDEX FUTURES THE LONG BOND TUMBLED 1 1/2 POINTS AFTER SLUMPING NEARLY TWO POINTS ON FRIDAY ITS YIELD SHOT UP TO 740 ITS HIGHEST MARK SINCE JANUARY 1993 OTHER TECHNOLOGY STOCKS WERE CAUGHT IN THE DOWNDRAFT SAYETT GROUP A PITTSFORD NY HIGHTECHNOLOGY PROJECTION EQUIPMENT COMPANY TUMBLED 7/8 TO 3 7/8 ASYST TECHNOLOGIES A MILPITAS CALIF SEMICONDUCTOR EQUIPMENT FIRM CEDED 2 1/4 TO 9 3/4 AND MICROTEST A PHOENIX SUPPLIER OF TOOLS FOR LOCALAREANETWORK CABLING FELL 1 1/8 TO 7 5/8 PARALLAN COMPUTER LOST 4 3/8 TO 6 5/8 AFTER THE MARKET CLOSED ON THURSDAY THE MOUNTAIN VIEW CALIF COMPUTER NETWORKING CONCERN SAID ITS 25 MILLION AGREEMENT WITH AN INTERNATIONAL BUSINESS MACHINES SUBSIDIARY MIGHT ENABLE IT TO NEARLY BREAK EVEN IN ITS FISCAL FIRSTQUARTER RESULTS BUT ROYALTIES BASED ON IBM SALES ARE NOT SUFFICIENT TO SUSTAIN THE COMPANY ON A PROFITABLE BASIS CS FIRST BOSTON CUT ITS RATING ON PARALLAN SHARES TO HOLD FROM STRONG BUY FOURTH SHIFT DROPPED 2 TO 5 1/4 THE MINNEAPOLIS SOFTWARE COMPANY SAID FRIDAY IT EXPECTS A SMALL LOSS FOR THE FIRST QUARTER BELOW ANALYSTS' EXPECTATIONS FOR NET INCOME OF SIX CENTS A SHARE A YEAR EARLIER THE COMPANY REPORTED EARNINGS OF TWO CENTS A SHARE THE DAY'S BIGGEST DECLINER AMERICAN SHARED HOSPITAL SERVICES AMEX BASED IN SAN FRANCISCO DUMPED 2 3/8 OR 76 ENDING AT 3/4 THE COMPANY SAID IT HAS REACHED AN AGREEMENT IN PRINCIPLE TO RESTRUCTURE ITS DEBTS WITH ITS MAJOR CREDITORS AND EQUIPMENT LESSOR ELSEWHERE IN THE HEALTHCARE GROUP MAGAININ PHARMACEUTICALS PLUNGED 7 7/8 OR 59 TO 5 3/8 THE PLYMOUTH MEETING PA COMPANY SAID ITS MSI78 TOPICAL TREATMENT FOR IMPETIGO A SKIN INFECTION DIDN'T OUTPERFORM A PLACEBO IN ITS INITIAL PHASE IIB/III CLINICAL TRIAL IN OTHER MERGER NEWS ITHACA BANCORP ITHACA NY ROSE 1 3/4 TO 17 1/4 FIRST EMPIRE STATE AMEX BUFFALO NY WHICH SLIPPED 1 1/4 TO 138 WILL ACQUIRE ITHACA FOR 19 A SHARE OR ABOUT 464 MILLION SATELLITE TECHNOLOGY MANAGEMENT SHOT 1 1/4 HIGHER TO 7 1/2 THE COSTA MESA CALIF COMMUNICATIONS FIRM SAID A SUBSIDIARY OF MALAYSIA'S BERJAYA GROUP ENTERED INTO AGREEMENTS TO ACQUIRE ABOUT 20 OF SATELLITE TECH'S COMMON STOCK ON A FULLY DILUTED BASIS GRC INTERNATIONAL NYSE ROSE 1 TO 11 ON NEWS THAT THE VIENNA VA PROVIDER OF PROFESSIONAL TECHNICAL SERVICES PLANS TO BUY BACK UP TO 300000 COMMON SHARES IN THE OPEN MARKET OR IN PRIVATE TRANSACTIONS COHERENT GAINED 7/8 TO 13 1/4 THE SANTA CLARA CALIF LASERSYSTEMS COMPANY HAS RECEIVED EXCLUSIVE RIGHTS TO DISTRIBUTE PRIVATELY HELD HERBERT SCHWIND'S KERATOM PHOTOREFRACTIVE LASER SYSTEM IN CERTAIN COUNTRIES US STOCK MARKETS WERE CLOSED FOR A HOLIDAY ON FRIDAY SO TRADERS SAY SELLERS POPPED OUT IN DROVES AT YESTERDAY'S OPEN NASDAQ DECLINERS THROTTLED ADVANCERS 2754 TO 791 ON NASDAQ STOCK MARKET VOLUME OF 2741 MILLION SHARES ON THURSDAY NASDAQ TURNOVER STOOD AT 374 MILLION SHARES THE BOND MARKET'S GOT EVERYONE BEFUDDLED SAID NELSON GOLD A SENIOR VICE PRESIDENT OF OVERTHECOUNTER TRADING AT INTERSTATE JOHNSON/LANE CORP AS A RESULT HE IS TELLING CLIENTS TO WATCH FOR STOCKS THAT RECENTLY HAVE BEEN BATTERED AND WAIT FOR A BUYING OPPORTUNITY BUT HE IS CAUTIONING AGAINST JUMPING IN FEET FIRST RIGHT AWAY A LOT OF GUYS ARE OUT THERE WITH THEIR FISHING RODS HOPING THEY DON'T CATCH A WHALE TO DRAG THEM TO THE BOTTOM MR GOLD SAID HE ISN'T THE ONLY ONE WHO THINKS THERE IS ROOM LEFT ON THE DOWNSIDE THERE'S A STRONG LIKELIHOOD THIS SELLING HASN'T REACHED BOTTOM SAID CLAUDIA MOTT DIRECTOR OF SMALLCAP RESEARCH AT PRUDENTIAL SECURITIES INC BUT WE DEFINITELY CAN'T CONTINUE TO KEEP GOING DOWN AT THIS PACE HER MAJOR CONCERN IS THE ONSLAUGHT OF FIRSTQUARTER EARNINGS REPORTS EXPECTED OVER THE NEXT FEW WEEKS SMALLER STOCKS WERE BEING PROPELLED BY LOW RATES AND EARNINGS MS MOTT SAID NOW THAT RATES AREN'T A LEG ON THE STOOL ANYMORE HOPES ARE SOLELY PINNED ON THE FACT THAT EARNINGS WILL BE ABLE TO CARRY US THROUGH SOME HEALTHCARE AND TECHNOLOGY CORPORATE PROFIT EXPECTATIONS ARE RATHER LOFTY SHE SAID DISAPPOINTING EARNINGS IN THE BELEAGUERED TECH GROUP COULD TAKE NASDAQ TO ITS KNEES SINCE IT'S SO HEAVILY WEIGHTED WITH THESE ISSUES MS MOTT ADDED 9404050142 940405 WHO'S NEWS RELIANCE GROUP HOLDINGS INC RELIANCE GROUP HOLDINGS INC NEW YORK ALBERT A BENCHIMOL 36 YEARS OLD WAS NAMED VICE PRESIDENT AND TREASURER OF THIS INSURANCE CONCERN MR BENCHIMOL WAS VICE PRESIDENT AND ASSISTANT TREASURER IN ADDITION RICHARD E SNYDER 60 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT PUBLISHING WAS NAMED A DIRECTOR INCREASING THE BOARD'S SIZE TO 15 9404050141 940405 CHUBB HEALTHSOURCE HMO NEW YORK CHUBBHEALTH A HEALTH MAINTENANCE ORGANIZATION SAID IT RECEIVED A CERTIFICATE OF AUTHORITY FROM NEW YORK STATE CHUBBHEALTH IS A JOINT VENTURE OF CHUBB LIFE INSURANCE CO A UNIT OF CHUBB CORP OF WARREN NJ AND HEALTHSOURCE INC CONCORD NJ IT PLANS TO OPERATE IN NEW YORK CITY AND SURROUNDING COUNTIES WITH A NETWORK OF MORE THAN 3000 PHYSICIANS AND 34 HOSPITALS 9404050140 940405 WHO'S NEWS FIRST OF MICHIGAN CAPITAL CORP FIRST OF MICHIGAN CAPITAL CORP DETROIT STEVE GASPER JR 46 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS REGIONAL INVESTMENT BANKING CONCERN MR GASPER SUCCEEDS JOHN G MARTIN WHO HAD STAYED ON AS PRESIDENT AND CEO AFTER HIS STATED RETIREMENT DATE OF DECEMBER 1993 MR GASPER MOST RECENTLY HAD BEEN EXECUTIVE VICE PRESIDENT AND NATIONAL SALES MANAGER OF FIDELITY INVESTMENTS' BROKERAGE ORGANIZATION IN BOSTON 9404050139 940405 THE CUTTING EDGE AN OLD QUIET AGENCY HAS SUDDENLY BECOME A HIGHTECH LEADER NATIONAL INSTITUTE OF STANDARDS WILL PICK KEY INDUSTRIES STEP UP RESEARCH GRANTS BUT CRITICS ALLEGE FAVORITISM BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL THAT'S RIGHT NIST THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY IT USED TO BE THE NATIONAL BUREAU OF STANDARDS THE PLACE WHERE SCIENTISTS FIGURE OUT EXACTLY HOW LONG A FOOT IS AND HOW MUCH A POUND WEIGHS NOW THEY'RE SUPPOSED TO FIGURE OUT THE FUTURE OF US INDUSTRY TOO TALK ABOUT MAKEOVERS NIST GOT ITS START DURING THE PRESIDENCY OF WILLIAM MCKINLEY THE PLACE IS SO QUIET THAT 250 DEER ROAM THE SUBURBAN CAMPUS UNDISTURBED EXCEPT BY SCIENTISTS BICYCLING AT LUNCHTIME NISTERS TALK IN LIBRARY WHISPERS AND BRAGGING RIGHTS GO TO THOSE WHO MAKE THE MOST PRECISE MEASUREMENTS DID YOU KNOW ASKS NISTER LAURIE LOCASCIOBROWN THAT MEASURING ONE PART IN A BILLION IS LIKE FINDING ONE WALDO IN A WHERE'S WALDO BOOK TWO MILLION PAGES LONG BUT THE NEW NIST IS SUPPOSED TO BE A TRENDSETTER AND POWER BROKER OUT ON THE CUTTING EDGE OF NEW TECHNOLOGIES IT IS SLATED FOR ONE OF THE STEEPEST INCREASES IN THE FEDERAL BUDGET AN 80 JUMP TO 935 MILLION IN THE YEAR THAT BEGINS OCT 1 AND ANOTHER LEAP TO 14 BILLION TWO YEARS LATER EMULATING THE JAPANESE IT IS DECIDING WHICH TECHNOLOGIES THE FEDERAL GOVERNMENT SHOULD BACK BY SELECTING AND SPEEDING UP CRITICAL ONES THAT SEEM A GRANT AWAY FROM THE MARKET AND AFTER DECADES OF NEGLECT IT IS BEING COURTED BY HIGHTECH COMPANIES AND FEDERAL LABORATORIES SEEKING ITS BLESSING AND SOME OF ITS MONEY THE TERMS SLEEPY' AND BACKWATER' DON'T APPLY HERE ANYMORE EXULTS LYNN MCNULTY A NIST COMPUTER GURU HOWEVER NIST'S FRONTANDCENTER ROLE HAS ALSO BROUGHT IT SOMETHING ELSE NEW CONTROVERSY EVEN TURMOIL SOME CRITICS RAP NIST FOR ALLEGED FAVORITISM IN AWARDING A CONTRACT FOR A FUTURISTIC MACHINE TOOL AND PREDICTS HEAVYHANDED MEDDLING IN THE MARKETPLACE OTHERS COMPLAIN THAT NIST FRONTED FOR A SPY AGENCY IN PUSHING NEW COMMUNICATIONSSECURITY TECHNOLOGY AND INSIDE NIST OLDTIMERS FEAR IT IS BECOMING TOO TRENDY AND POLITICAL THEY WERE AGHAST WHEN THE CLINTON ADMINISTRATION QUICKLY REPLACED A VETERAN DIRECTOR WITH A NEWCOMER TO THE AGENCY ENDING A DECADESOLD TRADITION OF NONPARTISANSHIP THOUGH SOME NISTERS REALIZE THAT EARLIER ADMINISTRATIONS PROBABLY DIDN'T CARE ENOUGH ABOUT NIST TO MAKE BIG CHANGES POLITICIZATION IS PART OF THE PRICE YOU PAY FOR GETTING MORE POWER SAYS JULIE FOX GORTE A NIST SPECIALIST AT CONGRESS'S OFFICE OF TECHNOLOGY ASSESSMENT THE FORCE BEHIND THE CHANGES IS PRESIDENT CLINTON WHO IS EMBRACING TECHNOLOGY SPENDING MUCH AS PRESIDENT REAGAN EMBRACED DEFENSE SPENDING RATHER THAN START A NEW AGENCY A MOVE THAT WOULD TAKE YEARS MR CLINTON PLEDGED BEFORE HIS ELECTION TO BOLSTER NIST'S TECHNOLOGY ROLE THESE DAYS NIST IS LIKE A GUY WHO JUST WON A LOTTERY AFTER DREAMING ABOUT IT FOR YEARS THE MONEY IS ROLLING IN HIS RELATIVES ARE GETTING EXTRA FRIENDLY BUT HE IS JUST FIGURING OUT WHAT HE REALLY WANTS TO DO WITH IT AND FEELING A LITTLE COCKY FIRST OF ALL NIST HAS DECIDED TO FIX UP THE PLACE SPENDING 500 MILLION TO RENOVATE KENNEDYERA LABORATORIES WHERE CHEMICALS HAVE EATEN THROUGH THE INSTRUMENTS THERE'S ONE LET'SBUYAJAGUAR SPLURGE THE AGENCY WILL BUILD TWO NEW LABS WITH FANCY CLIMATE AND VIBRATION CONTROLS TO HOUSE DELICATE EXPERIMENTS NEXT NIST SAYS IT WON'T HAVE TO BEG WEALTHIER RELATIVES FOR MONEY ANYMORE SOME YEARS 40 OF NIST'S BUDGET CAME FROM THE NUCLEARWEAPONS LABS THE PENTAGON AND OTHERS WITH FAT WALLETS NOW THE BOMB MAKERS ARE LOOKING FOR WORK AND PURSUING NIST FOR JOINT VENTURES DONALD BLOMQUIST A NIST MANUFACTURINGTECHNOLOGY MANAGER SAYS HE RECENTLY TOURED Y12 A TENNESSEE PLANT THAT USED TO CRANK OUT NUCLEARWEAPONS PARTS IT LOOKS LIKE A NEUTRON BOMB WENT OFF HE SAYS ALL THE MACHINES ARE THERE BUT NO PEOPLE IN THE 1980S HE RECALLS NIST SCROUNGED A 15 MILLION ENERGY DEPARTMENT CONTRACT TO IMPROVE WEAPONS PRODUCTION MACHINERY NOW HE IS THINKING OF ASKING 15 MILLION JUST TO LISTEN TO THE DEPARTMENT'S ENGINEERS THEY'RE ALWAYS HERE AND NIST SAYS IT WILL DO RESEARCH THAT IT REALLY WANTS TO DO IN THE PHYSICS LABORATORY JABEZ MCCLELLAND A TALL THIN 10YEAR VETERAN OF NIST SAYS THE ENERGY DEPARTMENT USED TO PAY HIM TO MEASURE THE COLLISIONS OF ELECTRONS AND ATOMS MEASUREMENTS THAT CAN TELL YOU SOMETHING ABOUT NUCLEAR FUSION WHICH POWERS NUCLEAR BOMBS AND STARS THE USUAL NIST RESEARCH FUNDAMENTAL BUT DULL NIST FINALLY HAS ENOUGH MONEY TO KISS OFF THAT WORK AND HAVE HIM PURSUE SOMETHING A BIT MORE PRACTICAL EVEN JAZZY BY ITS STANDARDS HE AIMS LASERS AT CHROMIUM TO CREATE MICROSCOPIC METALLIC LINES A PROCESS THAT COULD SOMEDAY BE USED TO MAKE SEMICONDUCTORS NEXT HE PLANS TO TWEAK THE MACHINE SO IT LAYS DOWN COMPLEX PATTERNS WHICH A COLLEAGUE LIKENS TO BUILDING A LASER ETCHASKETCH I FEEL I'M A LOT MORE USEFUL TO THE COUNTRY HE SAYS JAMES ALBUS ALSO NOTES THE CHANGES THE ROBOT SYSTEMS MANAGER SAYS HIS LAB ONCE HAD SO LITTLE MONEY THAT HE USED TO WORK ON HIS ROBOT CREATIONS AT HOME AND AFTER HOURS NEXT TO HIM STANDS ROBOCRANE AN 18FOOTTALL WEB OF ALUMINUM PIPES THAT SUPPORT SIX CABLES ATTACH BIG CONSTRUCTION TOOLS TO THE CABLE ENDS HE SAYS AND ROBOCRANE COULD SOMEDAY BE USED TO BUILD BRIDGES AND HIGHWAYS DURING THE REPUBLICAN ERA HE SAYS HE HAD TO CONVINCE THE PENTAGON WE COULD TAKE THIS IN AN AIRPLANE AND DROP OUT IN A JUNGLE AND BUILD MILITARY BASES JUST TO GET A 250000 GRANT TO PAY FOR EARLY DESIGN THEN HE TRIED TO PERSUADE THE ENERGY DEPARTMENT TO BUILD A ROBOCRANE FIRESNUFFER TO PUT OUT OILWELL FIRES IN KUWAIT AFTER THE GULF WAR NO SALE NOW NIST PROMISES TO FUND NEARLY ALL OF THE ROBOT DIVISION'S 6 MILLION BUDGET INSTEAD OF RELYING ON THE PENTAGON TO PAY FOR MORE THAN HALF OF IT AS A RESULT MR ALBUS THINKS HE CAN FINALLY GET ENOUGH MONEY TO DEVELOP A BRIDGE AND ROADBUILDING VERSION OF ROBOCRANE THESE CHANGES HAVE COME RAPIDLY THINK OF NIST AS A BASEBALL TEAM FOR YEARS IT FINISHED IN THE MIDDLE OF THE PACK THE CLEVELAND INDIANS OF THE HIGHTECH LEAGUE THEN A NEW OWNER TAKES CHARGE AND DEMANDS A WINNER HE FIRES THE MANAGER AND OPENS HIS CHECKBOOK THAT'S ABOUT WHAT HAS HAPPENED AT NIST IN ITS FIRST 92 YEARS NIST WAS HEADED BY MIDDLEAGED WHITE MEN WHO GENERALLY WORKED THEIR WAY UP THROUGH THE AGENCY SHORTLY AFTER THE CLINTON INAUGURATION THAT CHANGED BEFORE FILLING THE COMMERCE DEPARTMENT'S TOP TRADE AND TECHNOLOGY POSTS COMMERCE SECRETARY RON BROWN WHOSE DEPARTMENT OVERSEES NIST DUMPED THE INCUMBENT NIST DIRECTOR AND REPLACED HIM WITH ARATI PRABHAKAR SHE'S A FORMER MANAGER AT A PENTAGON RESEARCH AGENCY AND CONSIDERED A FIRSTRATE TECHNOPOL SHE'S THE FIRST FEMALE FIRST ASIANAMERICAN FIRST NIST DIRECTOR BROUGHT IN QUICKLY BY A NEW ADMINISTRATION AND AT AGE 35 SHE IS A GOOD 15 YEARS YOUNGER THAN MOST OF HER SENIOR NIST COLLEAGUES THIS WASN'T DONE ON MERIT SNAPS JOHN LYONS THE FORMER NIST DIRECTOR ABRUPTLY SHIPPED OFF TO AN ARMY RESEARCH LAB THEY TOLD ME THEY WANTED THEIR OWN PERSON THAT'S THE DEFINITION OF POLITICIZATION QUITE A FEW NISTERS AGREE I HAD THE WORD POLITICAL' STAMPED ON MY HEAD FOR A YEAR SAYS THE DISARMINGLY CANDID MS PRABHAKAR HER NAME IS PRONOUNCED ARTHEE PRABAKAR EVERYONE CALLS HER ARTHEE BUT SHE MOVED TO QUELL THE CONCERN BY KEEPING THE STAFF INTACT COURTING INFLUENTIAL NIST ALUMNI AND LIKE EVERY GOOD POL BRINGING HOME THE BACON AT ONE STAFF MEETING SHE WAVED A CLINTON LETTER ASKING CONGRESS TO BEEF UP NIST'S BUDGET WHICH HAD LONG BARELY KEPT PACE WITH INFLATION THE BACKBITING SUBSIDED IT TURNS OUT THAT YOU CAN BUY HAPPINESS SAYS DEPUTY DIRECTOR RAYMOND KAMMER MS PRABHAKAR PLANS TO PUMP MORE THAN HALF OF NIST'S NEW FUNDS INTO A CONGRESSIONAL FAVORITE THE ADVANCED TECHNOLOGY PROGRAM ATP'S PROCLAIMED GOAL IS NOTHING LESS THAN TO DEVELOP TECHNOLOGIES WITH HIGHPAYOFF POTENTIAL FOR THE NATION THROUGH GRANTS TO COMPANIES AND CONSORTIA BUT FUNDING NEVER OVER 68 MILLION IN THE BUSH YEARS WAS SO MEAGER THAT THE PROGRAM HARDLY MATTERED UNDER THE CLINTON BUDGET ATP'S FUNDS NEARLY TRIPLED TO 200 MILLION THIS YEAR AND ARE SCHEDULED TO JUMP TO 450 MILLION NEXT YEAR AND TO 750 MILLION BY THE END OF MR CLINTON'S FIRST TERM NIST INDIVIDUAL GRANTS REMAIN TINY LIMITED TO A THREEYEAR TOTAL OF 2 MILLION FOR AN INDIVIDUAL COMPANY AND ABOUT 4 MILLION A YEAR FOR CONSORTIA BUT MS PRABHAKAR PLANS TO LASH TOGETHER TEAMS OF COMPANIES TO WORK IN BROAD AREAS SELECTED BY THE GOVERNMENT WITH FEDERAL BUDGETS OF ABOUT 50 MILLION A YEAR MATCHED BY INDUSTRY AND WITH R&D FUNDING FLAT ELSEWHERE IN THE GOVERNMENT INDUSTRY IS SWARMING OVER NIST IN OCTOBER MORE THAN 1000 COMPANY REPS DESCENDED ON THE GAITHERSBURG CAMPUS TO HEAR MS PRABHAKAR OUTLINE HER VISION I HAD TO LEARN THE PLURAL TERM FOR AUDITORIUM SHE JOKES COMPANIES HAVE FORWARDED 600 SUGGESTIONS TO NIST FOR PROJECTS TO INVEST IN AND THE AGENCY SAYS IT WILL MAKE ITS FIRST FOUR SELECTIONS THIS MONTH A NIST BROCHURE GIVES SOME EXAMPLES OF WHAT THE AGENCY WANTS TO DO ONE PROJECT WOULD AIM TO STRENGTHEN CONCRETE FIVEFOLD ANOTHER WOULD TRY TO DEVELOP NEW PERSONAL ELECTRONIC SYSTEMS WE WANT DRAMATIC ADVANCES SAYS THE NIST DIRECTOR THE SYNERGY FROM 20 TO 30 AWARDS WORKING TOGETHER WEAVING A TECHNICAL COMMUNITY IS MUCH POWERFUL THAN AN INDIVIDUAL GRANT NIST BOASTS THAT SOME OF ATP'S EARLY PROJECTS ARE MAKING PROGRESS IN STORING MOUNTAINS OF COMPUTER DATA IN HOLOGRAMS ETCHED ON FILM AND IN TEACHING COMPUTERS TO RECOGNIZE HANDWRITING BUT GIDDINGS & LEWIS INC A MACHINETOOL MAKER SAYS THAT WHEN NIST WANTED TO BUY A FUTURISTIC MACHINE TOOL IT TAILORED THE SPECIFICATIONS SO THAT AN ATP PARTICIPANT WORKING ON THE TECHNOLOGY INGERSOLL MILLING MACHINE CO WAS BOUND TO WIN NIST IS PICKING WINNERS AND LOSERS SAYS JAMES SIMON VICE PRESIDENT OF ENGINEERING AT GIDDINGS & LEWIS IT HURTS US FROM A COMPETITIVE STANDPOINT MR ALBUS NIST'S ROBOT MANAGER SAYS IT HELD AN OPEN COMPETITION FOR THE MACHINE AND REWROTE SOME PROVISIONS TO MAKE IT POSSIBLE FOR GIDDINGS & LEWIS TO BID BUT HE SAYS HE REALLY WANTED THE INGERSOLL MACHINE BECAUSE IT IS LARGER IN THE END ONLY INGERSOLL BID ON THE 1 MILLION CONTRACT WE DIDN'T MAKE IT EASY FOR GIDDINGS & LEWIS HE ACKNOWLEDGES WARY BECAUSE CHARGES OF FAVORITISM AND GOVERNMENT MEDDLING HAVE DOOMED PAST EFFORTS TO CREATE GOVERNMENTLED INDUSTRIAL POLICIES NIST DOESN'T PLAN A HIRING SPREE ITS PAYROLL IS EXPECTED TO INCREASE BY JUST A FEW HUNDRED FROM THE CURRENT 3100 NISTERS RECALL THAT THE EISENHOWER ADMINISTRATION CUT NIST'S STAFF BY NEARLY HALF THEN THE KENNEDY NIXON AND CARTER ADMINISTRATIONS PROMISED INCREASES BUT NEVER CAME THROUGH IT WOULD BE POLITICALLY NAIVE TO ASSUME WE'LL ALWAYS BE LOVED NOTES ROBERT HEBNER DEPUTY HEAD OF NIST'S ELECTRONICS LAB SO NIST HAS MADE ANOTHER IMPORTANT DECISION TO MOVE FAST TO MAKE SURE THAT OTHER AGENCIES DON'T ELBOW IT ASIDE IN CONGRESS AND GRAB NIST MONEY THIS YEAR NIST PLANS A SEVENFOLD INCREASE TO ABOUT 53 IN ITS REGIONAL MANUFACTURING CENTERS WHICH TEACH NEW PRODUCTION TECHNIQUES TO SMALL BUSINESSES THEN IT PLANS TO EXPAND QUICKLY THE CENTERS IT OVERSEES TO 100 IF WE DON'T DO IT SOMEONE ELSE WILL FRETS PHILIP NANZETTA HEAD OF THE PROGRAM WHO FEARS POWERGRABS BY THE ENERGY DEPARTMENT OR PENTAGON HE IS PREPARING TWO THICK BOOKS OF TESTIMONIALS FROM SMALL BUSINESSES TO SHOW CONGRESS THAT NIST SHOULD REMAIN ITS FAVORITE MEANTIME THE NEW NIST CONTINUES TO PUMP MONEY INTO THE OLD NIST'S JOB MEASUREMENTS EVEN IF THE INDUSTRIALPOLICY MONEY VANISHES MEASUREMENT MONEY WILL REMAIN NISTERS FIGURE IN THE PAST NIST SCIENTISTS BUILT THE ATOMIC CLOCK AND CALCULATED THAT LIGHT TRAVELS ONE METER IN THREE BILLIONTHS OF A SECOND NOW CLAYTON TEAGUE A CHATTY PHYSICIST WHO TWIRLS A KEYRING WITH A COMPUTER CHIP ENCASED IN PLASTIC IS BUILDING THE ULTIMATE LENGTHMEASUREMENT MACHINE IT IS A 300POUND COPPER ORB A LITTLE BIGGER THAN A BASKETBALL THAT USES A POWERFUL MICROSCOPE TO TRY TO GAUGE DISTANCES AS TINY AS ONE BILLIONTH OF A METER THAT IS ABOUT THE SIZE OF FIVE SILICON ATOMS OR AS ONE NISTER PUTS IT THE DISTANCE A FINGERNAIL GROWS IN TWO SECONDS SEMICONDUCTOR MAKERS WILL SOMEDAY NEED SUCH ACCURACY TO ALIGN COMPUTER CHIPS NEVERTHELESS THE NEW NIST ISN'T SATISFIED JUST COUNTING ATOMS IT HAS MOVED TO THE FORE IN COMPUTER AND TELEPHONE SECURITY BY CHAMPIONING A TECHNOLOGY IT DEVELOPED WITH THE NATIONAL SECURITY AGENCY A SPY AGENCY THAT EAVESDROPS ON FOREIGN GOVERNMENTS THE PLAN WHICH THE WHITE HOUSE ADOPTED IN FEBRUARY CALLS FOR US COMPANIES TO BUY COMPUTERSECURITY CHIPS DEVELOPED AT THE NSA US COMPUTER COMPANIES SCREAM THAT THE NSA MAY BE TARGETING THEM FOR SURVEILLANCE TOO NIST HAS BECOME THE PATTY HEARST OF THE FEDERAL GOVERNMENT CHARGES DAVID PEYTON VICE PRESIDENT OF THE INFORMATION TECHNOLOGY ASSOCIATION OF AMERICA A TRADE GROUP OF TECHNOLOGY COMPANIES THEY'VE BEEN KIDNAPPED BY NSA THE SPY AGENCY REJECTS SUCH ALLEGATIONS AS LUDICROUS BUT PUBLIC COMMENTS FILED AT NIST RAN 350 TO 2 AGAINST THE PLAN ALTHOUGH NIST CONSIDERS ITSELF A CHAMPION OF INDUSTRY IT PERSISTED WITH THE PLAN ANYWAY AT MR KAMMER'S URGING WHY CRITICS NOTE THAT BOTH OF MR KAMMER'S PARENTS WORKED MANY YEARS AT THE NSA BUT HE SAYS HE FEELS NO SPECIAL ALLEGIANCE TO THE SPY AGENCY RATHER HE SAYS NIST IS SIMPLY TRYING TO BALANCE PRIVACY CONCERNS AGAINST THE NEEDS OF LAW ENFORCEMENT AND NATIONAL SECURITY BUT THE GLAMOUR AND SEDUCTION OF POWER UNDENIABLY PLAYED A ROLE TOO AFTER DECADES IN OBSCURITY NIST IS FINALLY RUBBING ELBOWS WITH SPIES AND WHITE HOUSE CHIEFTAINS AND IT WANTS TO PUT ITS STAMP ON POLICY THIS ISN'T A TECHNICAL ISSUE IT'S A PUBLICPOLICY ISSUE INVOLVING SENIOR OFFICIALS SAYS MR MCNULTY THE NIST COMPUTER MANAGER THAT'S NEW FOR NIST 9404050138 940405 EDUCATION SCHOOL'S OUT EARLY FOR MORE TEACHERS BUT COSTCUTTING PLANS GET MIXED GRADES BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL THOUSANDS OF AMERICA'S MOST EXPERIENCED PUBLIC SCHOOL TEACHERS AND ADMINISTRATORS HAVE BEEN CALLING IT QUITS THESE OLDER EDUCATORS ARE BEING OFFERED EARLYRETIREMENT INCENTIVES THAT MANY FIND TOO GOOD TO REFUSE IN THE PAST FIVE YEARS AT LEAST 18 STATES AND MANY SCHOOL DISTRICTS HAVE IMPLEMENTED THESE COSTCUTTING PLANS IN THE HOPE OF REPLACING THEIR HIGHESTPAID EMPLOYEES WITH ENTRYLEVEL NEWCOMERS AND ELIMINATING SOME POSITIONS AND EDUCATORS OFTEN TIRED OF THE CLASSROOM OR LOOKING FOR NEW CAREERS HAVE BEEN RESPONDING IN DROVES BUT THIS DOWNSIZING CAN HAVE ITS DOWN SIDE EARLYRETIREMENT PROGRAMS CAN CAUSE CHAOS FOR SCHOOL DISTRICTS FORCED TO TRY TO FILL SPECIALISTS' POSITIONS AND LOFTY PROJECTED SAVINGS SOMETIMES DON'T MATERIALIZE THE IDEA OF OFFERING EARLYRETIREMENT PACKAGES TO TEACHERS HAS WON THE BACKING OF TEACHERS UNIONS WHICH PREFER THEM TO LAYOFFS AND SCHOOL REFORMERS WHO ARGUE THAT VETERAN TEACHERS CAN BE MOST RESISTANT TO CHANGE AND SHOULD BE REPLACED WITH EAGER WELLTRAINED NEWCOMERS I DON'T WANT TO DENIGRATE WHAT TEACHERS HAVE DONE BUT THE NEWER TEACHERS DO HAVE A BETTER SENSE OF WHAT THEY'RE GETTING INTO AND A BETTER RECOGNITION OF THE SPECIAL NEEDS OF KIDS AND THE CHANGING TIMES SAYS SALLY PANCRAZIO DEAN OF THE COLLEGE OF EDUCATION AT ILLINOIS STATE UNIVERSITY IN NORMAL ABOUT 6 OF ILLINOIS'S MORE THAN 14000 SCHOOL EMPLOYEES INCLUDING 3881 IN CHICAGO RETIRED UNDER AN INCENTIVE PLAN OFFERED LAST YEAR AND THIS YEAR AIMED AT TEACHERS 50 AND OLDER WITH AT LEAST 15 YEARS' EXPERIENCE USUALLY TEACHERS MUST BE 55 YEARS OLD WITH 25 YEARS' EXPERIENCE BEFORE THEY CAN RETIRE IN PENNSYLVANIA NEARLY 12000 SCHOOL EMPLOYEES OR ROUGHLY 6 OF THE EDUCATIONAL WORKFORCE SIGNED UP FOR EARLY RETIREMENT IN 1992 AND 1993 IN CHICAGO THE EARLY RETIREES INCLUDED 479 SPECIALEDUCATION INSTRUCTORS AND COUNSELORS A SPECIALITY AREA WHERE QUALIFIED APPLICANTS ARE FEW AND THE STRESS LEVEL IN THE CLASSROOM IS HIGH I AM DESPERATE SAYS BELKIS M SANTOS CHICAGO'S ASSISTANT SUPERINTENDENT OF HUMAN RESOURCES WHO IS SEEKING APPLICANTS NATIONWIDE THE NATIONAL EDUCATION ASSOCIATION WHICH RECENTLY COMPLETED A STUDY OF EARLYRETIREMENT PROGRAMS NOTES THAT ANTICIPATED SAVINGS SOMETIMES DON'T APPEAR BECAUSE OF THE ADDITIONAL COSTS INCLUDING INCREASED RETIREMENT AND HEALTH OBLIGATIONS AND ADMINISTRATION EXPENSES PROJECTIONS CAN ALSO BE THROWN OFF IF ENOUGH VOLUNTEERS FAIL TO SIGN UP INDEED ONLY SIX OF 17 STATES SURVEYED RATED THEIR BUYOUTS AS COMPLETELY SUCCESSFUL ILLINOIS HOPED TO SAVE 150 MILLION BY GETTING ABOUT 20000 TEACHERS OUTSIDE CHICAGO TO RETIRE EARLY IN SUBURBAN CHICAGO FOR EXAMPLE THE TARGETED TEACHERS MADE UP TO 70000 A YEAR WHILE ENTRYLEVEL REPLACEMENTS TYPICALLY START AT NO MORE THAN 26000 BUT FEWER THAN 11000 TEACHERS ARE EXPECTED TO QUIT REDUCING THE SAVINGS THEY HOPE TO HIT MAYBE 100 MILLION SAYS ROBERT R DANIELS EXECUTIVE DIRECTOR OF THE STATE'S TEACHER RETIREMENT SYSTEM IN DENVER SCHOOL OFFICIALS WERE FORCED TO CUT THEIR PROJECTED SAVINGS FROM A 1992 EARLYRETIREMENT PLAN BY TWOTHIRDS AFTER MORE REPLACEMENTS WERE NEEDED THAN ANTICIPATED BECAUSE OF RISING ENROLLMENT MANY TEACHERS WHO CHOOSE TO RETIRE EARLY DO SO BECAUSE THEY HAVE HAD ENOUGH OF THE CLASSROOM PARTICULARLY THOSE IN URBAN SCHOOL DISTRICTS MOST OF THESE PEOPLE WHO WE ARE TALKING ABOUT HAD 30 OR MORE YEARS OF SERVICE SAYS EMORY EYSTER A RETIREMENT CONSULTANT FOR THE PENNSYLVANIA STATE EDUCATION ASSOCIATION THEY'RE PRETTY MUCH BURNED OUT OF THE CLASSROOM AT THIS POINT BUT SOME ARE ATTRACTED BY THE FINANCIAL INCENTIVE SUCH AS NORMAN FREY CHAIRMAN OF THE ENGLISH DEPARTMENT AT NEW TRIER HIGH SCHOOL IN WINNETKA ILL I THINK I'M AT MY VERY PEAK THIS YEAR THE PEAK OF PEAKS SAYS THE 57YEAROLD TEACHER WHO BEGAN HIS CAREER 35 YEARS AGO IT'S REALLY A FINANCIAL THING MORE THAN ANYTHING ELSE MR FREY SAYS THAT IN ADDITION TO PAYING 12 OF HIS SALARY TO THE STATE TO BUY THREE YEARS OF SERVICE TOWARD HIS PENSION THE LOCAL DISTRICT OFFERED TO RAISE HIS PAY BY 20 WHICH WILL FURTHER BOOST HIS RETIREMENT INCOME GIVEN THE OPPORTUNITY IT'S TIME FOR A NEW LIFE HE SAYS HE PLANS TO TEACH PARTTIME AT NORTHWESTERN UNIVERSITY AND TO PURSUE HIS HOBBIES INCLUDING COMPUTERS AND WRITING HENRY BANGSER SUPERINTENDENT OF MR FREY'S SCHOOL DISTRICT SAYS HE REGRETS LOSING SO MANY EXPERIENCED TEACHERS AT THE HIGH SCHOOL WHERE 20 OF THE STAFF INCLUDING 52 TEACHERS ARE RETIRING WE'RE LOSING MORE THAN 1500 YEARS OF EXPERIENCE AT NEW TRIER HE SAYS IT IS IMPOSSIBLE TO REPLACE THE LONGTERM COMMITMENT TO THE ORGANIZATION AND THE EXPERTISE THAT THESE PEOPLE HAVE BROUGHT TO THE SCHOOL DISTRICT OVER THE PAST THREE DECADES THAT KIND OF UNDERSTANDING ABOUT THE TRADITIONS OF THE SCHOOL CAN'T BE REPLACED REGARDLESS OF THE TALENT OF THE PEOPLE WHO ARE COMING MR BANGSER SUGGESTED HOWEVER THAT MANY HIGHLY TALENTED YOUNG PEOPLE ARE APPLYING FOR TEACHING POSITIONS THE INTEREST IN BECOMING A PUBLICSCHOOL EDUCATOR IN THE 1990S IS HIGHER THAN I'VE EVER SEEN BEFORE AMONG VERY TALENTED UNDERGRADUATES HE SAYS MR FREY AGREES THAT CHANGE IS GOOD BUT HE ADDS VETERAN TEACHERS PLAY AN IMPORTANT ROLE AS MENTORS THERE IS NO SUBSTITUTE FOR EXPERIENCE HE SAYS THAT ADDS ART TO THE SCIENCE OF TEACHING SOME 14000 ILLINOIS SCHOOL EMPLOYEES OR ABOUT 6 OF THE EMPLOYEES CHOSE EARLY RETIREMENT UNDER AN INCENTIVE PLAN AN ARTICLE TUESDAY UNDERSTATED THE NUMBER OF EMPLOYEES WHO RETIRED 9404050137 940405 ECONOMY ECONOMISTS DON'T SEE STRONG JOB GROWTH LEADING TO HIGHER WAGES AND INFLATION BY AMANDA BENNETT AND LINDLEY H CLARK JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IS THERE ANY EVIDENCE THAT THE CURRENT STRONG GROWTH IN EMPLOYMENT IS LEADING INEVITABLY TO WAGE INFLATION AS THE AILING BOND MARKET SEEMS TO BELIEVE THE CONVULSIONS IN THE FINANCIAL MARKETS DURING THE PAST TWO TRADING DAYS HAVE BEEN FUELED IN PART BY THE ROBUST MARCH EMPLOYMENT NUMBERS THE LABOR DEPARTMENT ANNOUNCED FRIDAY WHICH SHOWED THE ECONOMY CREATING 456000 NEW JOBS NEARLY TWICE THE NUMBER ANALYSTS EXPECTED BOND TRADERS SEE IN THAT NUMBER AN OVERHEATING ECONOMY AND A TIGHTER LABOR MARKET THAT WILL LEAD TO HIGHER WAGES AND THUS INFLATION BOND PRICES PLUNGED FRIDAY AND AGAIN YESTERDAY BUT IN THE VIEW OF MOST ECONOMISTS THE OUTLOOK FOR WAGES IS FAR FROM ALARMING WHILE NEARLY EVERYONE AGREES JOB GROWTH IS VIGOROUS AND LIKELY WILL REMAIN SO FOR SOME TIME FEW SEE EMPLOYERS HAVING TO BID UP WAGES TO ATTRACT WORKERS ANYTIME SOON INSTEAD MOST ECONOMISTS SAY SEVERAL FACTORS WILL WORK TO KEEP WAGE INCREASES TO A MINIMUM INCLUDING THE LARGE NUMBER OF PARTTIME AND TEMPORARY EMPLOYEES IN THE WORK FORCE A CAUTIOUS ATTITUDE ABOUT THE RECOVERY AMONG EMPLOYERS AND EMPLOYEES AND STRONG RECENT GROWTH IN PRODUCTIVITY OR THE VALUE OF OUTPUT PRODUCED PER HOUR WORKED GORDON RICHARDS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS SAYS HE ACTUALLY STILL SEES EXTREME SLACK IN THE LABOR MARKET WHERE LABOR IS TIGHT THE NUMBERS AREN'T SIGNIFICANT ENOUGH TO FUEL INFLATION SAYS KURT KARL AN ECONOMIST WITH WEFA GROUP INC A FORECASTING FIRM HE SAYS FOR EXAMPLE THAT WORKERS ARE IN INCREASING DEMAND IN THE BUSINESSSERVICES SECTOR WHICH INCLUDES SUCH OCCUPATIONS AS CONSULTANTS AND ACCOUNTANTS IN HEALTH SERVICES AND IN SOME COMPUTERRELATED TECHNICAL SPECIALTIES BUT SAYS MR KARL ALL OF THESE OCCUPATIONS IN TOTAL REPRESENT LESS THAN 15 OF THE LABOR FORCE SHORTAGES WOULD NEED TO DEVELOP IN 30 TO 50 OF THE WORK FORCE HE SAYS BEFORE INFLATION WOULD BE AFFECTED INDEED HE CALCULATES THAT THE ECONOMY COULD KEEP UP ITS CURRENT PACE OF JOB CREATION ABOUT 200000 JOBS A MONTH ON AVERAGE FOR THE PAST FEW MONTHS THROUGH 1996 WITHOUT FUELING INFLATION THAT'S BECAUSE HE EXPECTS A SIMILAR GROWTH IN THE NUMBER OF WORKERS ENTERING THE AVAILABLE LABOR FORCE CHIEFLY PEOPLE WHO DROPPED OUT OF THE JOB MARKET DURING THE RECESSION WHO ARE STARTING TO LOOK FOR WORK AGAIN A LOT OF PEOPLE THREW IN THE TOWEL IN THE LAST RECESSION HE SAYS WE THINK THERE IS A LARGE POOL THAT CAN COME BACK IN OTHERS SAY WAGE DEMANDS WILL BE MODERATED BY SUCH PEOPLE AS SUZANNE CRANE WHO ARE WORKING PARTTIME WHILE WAITING FOR FULLTIME WORK MS CRANE A 24YEAROLD COLLEGE GRADUATE WHO LIVES IN CONCORD MASS HAS SPENT THE PAST TWO YEARS LOOKING FOR A JOB IN COLLEGE ADMISSIONS WORK MEANWHILE SHE WORKS PARTTIME IN TELEMARKETING PEOPLE AREN'T GOING TO MAKE AGGRESSIVE WAGE BIDS WHEN THEY HAVE PARTTIME JOBS SAYS MR RICHARDS OF THE NATIONAL ASSOCIATION OF MANUFACTURERS PARTTIME WORKERS STILL DON'T HAVE MUCH LEVERAGE WHILE SOME ECONOMISTS BELIEVE THAT INFLATIONARY PRESSURES COULD PICK UP IF THE CURRENT 65 UNEMPLOYMENT RATE DROPS CLOSER TO ABOUT 60 MR RICHARDS BELIEVES IT WILL HAVE TO DROP MUCH FURTHER TO ABOUT 57 BEFORE THE SITUATION BECOMES INFLATIONARY CHARLES LIEBERMAN DIRECTOR OF FINANCIAL MARKETS RESEARCH AT CHEMICAL BANKING CORP IS ONE WHO SEES INFLATION PRESSURES ALREADY BUILDING ONE REASON HELPWANTED ADVERTISING IS UP THE LABOR MARKET HAS BECOME SUFFICIENTLY TIGHT THAT BUSINESS MUST GO OUT AND RECRUIT HE SAYS THE WAY YOU ENCOURAGE A WORKER FROM A COMPETITOR TO LEAVE AND JOIN YOU IS TO PAY MORE MONEY THAT'S WHY WE THINK WE SHOULD EXPECT UPWARD PRESSURE ON LABOR COSTS STILL EVEN HE THINKS THE PROCESS IS JUST BARELY UNDER WAY OTHERS SAY EMPLOYERS' RESISTANCE TO GIVING WAGE INCREASES WILL BE STRONGER THAN IN PAST RECOVERIES COMPANIES ARE GOING TO BE GUNSHY GIVEN WHAT THEY WENT THROUGH FOR THE LAST SEVERAL YEARS SAYS FRANK BELMONTE A COMPENSATION CONSULTANT WITH HEWITT ASSOCIATES IN LINCOLNSHIRE ILL INSTEAD EMPLOYERS WILL CONCENTRATE ON INCREASING PRODUCTIVITY THEY HAVE LEARNED A LOT FROM THE YEARS OF EXCESS INDEED SOME LABOR ANALYSTS SEE A CONTINUATION OF THE TREND SET IN THE LATTER PART OF 1993 WHEN PRODUCTIVITY GROWTH OUTPACED WAGE GROWTH IN LAST YEAR'S FOURTH QUARTER FOR EXAMPLE THE BUREAU OF LABOR STATISTICS REPORTED THAT LABOR PRODUCTIVITY ROSE 61 WHILE HOURLY COMPENSATION ROSE 28 MEANING THAT THE ACTUAL COST OF LABOR FELL DURING THAT QUARTER UNIT LABOR COSTS FELL AT THE FASTEST RATE THEY HAVE FALLEN IN 30 YEARS NOTES LAURA TYSON CHIEF WHITE HOUSE ECONOMIST 9404050135 940405 WHO'S NEWS HEALTH O METER PRODUCTS INC HEALTH O METER PRODUCTS INC BRIDGEVIEW ILL S DONALD MCCULLOUGH 50 YEARS OLD FORMERLY VICE PRESIDENT AND GENERAL MANAGER OF GTE SYLVANIA'S EUROPEAN LIGHTING DIVISION A UNIT OF GTE CORP WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF HOMEHEALTH CARE MEDICAL AND OFFICE PRODUCTS HE SUCCEEDS ROBERT W MILLER WHO RETIRED ALSO ANDREW ROTH 47 FORMERLY SENIOR VICE PRESIDENT PROFESSIONAL PRODUCTS GROUP WAS NAMED EXECUTIVE VICE PRESIDENT SUCCEEDING CLAYTON A FARNSWORTH WHO RESIGNED TO PURSUE OTHER INTERESTS 9404050134 940405 BUSINESS BRIEF MALAYSIAN COMPANY IN PACT TO ACQUIRE AIRCONDITIONING FIRM SNYDERGENERAL DALLAS A COMPANY CONTROLLED BY HONG LEONG GROUP OF MALAYSIA AGREED TO BUY SNYDERGENERAL CORP A FAMILYOWNED MAKER OF AIRCONDITIONING AND AIRFILTRATION EQUIPMENT TERMS WEREN'T DISCLOSED BUT THE PURCHASE PRICE IS BELIEVED TO BE 400 MILLION TO 500 MILLION DALLASBASED SNYDERGENERAL HAS MORE THAN 700 MILLION IN ANNUAL REVENUE THE BUYER IS OYL INDUSTRIES BHD A MALAYSIAN MAKER OF HEATING VENTILATING AND AIRCONDITIONING EQUIPMENT OYL IS ONE OF ABOUT A DOZEN PUBLICLY HELD COMPANIES CONTROLLED BY HONG LEONG WHOSE CONTROLLING SHAREHOLDER IS MALAYSIAN BUSINESSMAN QUEK LENG CHAN THE TRANSACTION COMES AFTER SNYDERGENERAL TWICE ABORTED PLANS IN THE PAST TWO YEARS TO TAKE THE COMPANY PUBLIC SNYDERGENERAL WAS FOUNDED IN 1982 BY ITS CHAIRMAN RICHARD W SNYDER WHEN HE DID A 27 MILLION LEVERAGED BUYOUT OF SINGER CO'S AIRCONDITIONING DIVISION HIS FAMILY OWNS ALL OF THE SHARES SNYDERGENERAL HAS SAID IT HOPES TO TAKE ADVANTAGE OF ENVIRONMENTAL RULES AND INTERNATIONAL ACCORDS THAT WILL FORCE COMPANIES WORLDWIDE TO CLEAN UP THE AIR IN THEIR BUILDINGS AND TO REPLACE AIR CONDITIONERS THAT DAMAGE THE OZONE LAYER BUT THE HIGHLY LEVERAGED COMPANY BELIEVED IT NEEDED OUTSIDE CAPITAL TO TAKE FULL ADVANTAGE OF THAT MARKET MR SNYDER SAID OYL'S PRESENCE IN CHINA AND OTHER ASIAN ECONOMIES WILL INCREASE SNYDERGENERAL'S COMPETITIVENESS IN THOSE MARKETS OYL SAID IT INTENDS TO KEEP SNYDERGENERAL AS A SEPARATE OPERATION AND TO APPOINT AN AMERICAN CHIEF EXECUTIVE OFFICER TO RUN IT 9404050133 940405 CALGENE'S FORM OF CANOLA DAVIS CALIF CALGENE INC SAID IT FILED A PETITION WITH THE US DEPARTMENT OF AGRICULTURE FOR APPROVAL OF A GENETICALLY ENGINEERED FORM OF CANOLA CONTAINING LAURATE A FATTY ACID NORMALLY FOUND ONLY IN PALM AND COCONUT OILS LAURATE IS USED TO MAKE SOAP SHAMPOO AND DETERGENT THE AGRICULTURAL BIOTECH COMPANY ASSERTED THE CROP PRESENTS NO ENVIRONMENTAL HAZARD 9404050132 940405 TECHNOLOGY & HEALTH MAGAININ STOCK SKIDS AS IMPETIGO DRUG FAILS TRIALS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL PLYMOUTH MEETING PA MAGAININ PHARMACEUTICALS INC SAID ITS LEAD PRODUCT TO TREAT IMPETIGO WAS UNSUCCESSFUL IN CLINICAL TRIALS SENDING ITS STOCK PLUMMETING 59 MAGAININ'S STOCK HAD HELD ITS VALUE DURING THE RECENT OVERALL MARKET DOWNTURN BUT YESTERDAY'S NEWS CAUSED THE STOCK TO TUMBLE 7875 A SHARE TO CLOSE AT 5375 IN HEAVY NASDAQ TRADING THE DRUG A TOPICAL CREAM CALLED MSI78 IS THE LATEST IN A STRING OF FAILURES TO HIT THE BIOTECHNOLOGY INDUSTRY THAT IS A REFLECTION OF THE HIGH RISK INHERENT IN DRUG DEVELOPMENT SAYS PETER F DRAKE AN ANALYST AT VECTOR SECURITIES INTERNATIONAL OF DEERFIELD ILL A LOT OF PHARMACEUTICAL INVESTORS HAVE KNOWN THAT FOR YEARS AND BIOTECH INVESTORS ARE JUST BEGINNING TO RECOGNIZE THAT THIS IS THE CASE MSI78 A DRUG MODELED AFTER A MOLECULE DERIVED FROM FROG SKIN WAS BEING TESTED TO TREAT IMPETIGO A SERIOUS SKIN INFECTION THAT MOSTLY AFFLICTS CHILDREN AN INITIAL REVIEW OF THE DATA INDICATED THAT PATIENTS TAKING THE DRUG SHOWED A 75 CURE RATE BUT SO DID THE PATIENTS USING A VEHICLE CONTROL THE SAME TOPICAL CREAM WITHOUT THE DRUG WE DON'T UNDERSTAND WHY THE VEHICLE CONTROL WORKED THE WAY IT DID IT'S UNPRECEDENTED SAID JAY MOORIN MAGAININ'S PRESIDENT IMPETIGO IS A BACTERIAL INFECTION THAT USUALLY OCCURS AFTER A CHILD HAS SCRATCHED A MOSQUITO BITE MR MOORIN SAID LEFT UNTREATED THE INFECTION CAN LEAD TO KIDNEY DAMAGE ABOUT 14 MILLION CASES OCCUR EACH YEAR BECAUSE OF THE DRUG'S FAILURE TO SHOW STATISTICALLY SIGNIFICANT EFFECTIVENESS FURTHER CLINICAL TRIALS OF THE DRUG HAVE BEEN DEFERRED UNTIL FURTHER ANALYSIS OF THE STUDY'S RESULTS HAVE BEEN DONE THE COMPANY SAID MR DRAKE SAID MAGAININ IS ANOTHER INSTANCE OF A BIOTECHNOLOGY COMPANY RUSHING INTO LATESTAGE CLINICAL TRIALS WHEN THERE SHOULD HAVE BEEN MORE PRELIMINARY TESTING OF THE DRUG THAT WAS ALSO BEHIND THE RECENT FAILURE OF REGENERON PHARMACEUTICALS INC'S DRUG TO TREAT LOU GEHRIG'S DISEASE TO SHOW EFFICACY IN CLINICAL TRIALS HE SAID THE RECENT INDUSTRY FAILURES ALSO REFLECT THE INDUSTRY'S YOUTH AND HIGH NUMBER OF DRUGS THAT ARE NOW REACHING LATESTAGE TESTING MR DRAKE SAID THERE ARE 160 DRUGS IN CLINICAL TRIALS DOUBLE THE NUMBER FOUR YEARS AGO HE ADDED 9404050131 940405 BUSINESS BRIEFS GRC INTERNATIONAL INC DIRECTORS AUTHORIZED THE COMPANY TO REPURCHASE UP TO 300000 COMMON SHARES EXTENDING AN AUTHORIZATION FROM 1991 UNDER WHICH NO SHARES WERE PURCHASED PRINCIPAL/EPPLER GUERIN & TURNER INC A REGIONAL SECURITIES FIRM OWNED BY PRINCIPAL MUTUAL LIFE INSURANCE CO DES MOINES IOWA CHANGED ITS NAME TO PRINCIPAL FINANCIAL SECURITIES INC MATRIX SERVICE CO COMPLETED ITS ACQUISITION OF BROWN STEEL CONTRACTORS INC OF NEWNAN GA FOR 8 MILLION IN CASH AND STOCK SUBJECT TO CERTAIN EARNINGS REQUIREMENTS FOR THE NEW UNIT TERMS WEREN'T DISCLOSED LONE STAR INDUSTRIES INC'S REORGANIZATION PLAN WILL BECOME EFFECTIVE APRIL 13 POSTPONED FROM MARCH 29 FOR COMPLETION OF REGULATORY AND OTHER APPROVALS AIRGAS INC COMPLETED ACQUISITION OF TWO RELATED INDUSTRIAL GAS AND WELDING SUPPLY BUSINESSES WITH ANNUAL SALES OF ABOUT 10 MILLION AT&T CAPITAL CORP'S LEASING SERVICES UNIT ACQUIRED 75 MILLION IN MACHINETOOL INDUSTRY LEASE FINANCE ASSETS FROM A UNIT OF GOLDOME FINANCIAL CORP AMERICAN TELEPHONE & TELEGRAPH CO OWNS ABOUT 80 OF AT&T CAPITAL 9404050130 940405 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN US ELECTRONICS COMPANIES AND A EUROPEAN STANDARDS BODY HOPE TO RESOLVE A YEARLONG DISPUTE ABOUT PATENT LICENSING THE PLANS FOLLOW US ANTITRUST AUTHORITIES' DECISION TO FOLLOW THE EUROPEAN UNION'S LEAD AND INVESTIGATE A TELECOMMUNICATIONS PATENTS POLICY OF THE INDEPENDENT EUROPEAN TELECOMMUNICATIONS STANDARDS INSTITUTE WHICH HAS ABOUT 330 GOVERNMENT INDUSTRY AND PHONE COMPANY MEMBERS THE COMPUTER AND BUSINESS EQUIPMENT MANUFACTURERS ASSOCIATION IN WASHINGTON SAYS THE POLICY AMOUNTS TO COMPULSORY LICENSING AND COULD PREVENT ITS US MEMBERS FROM PARTICIPATING IN TECHNICAL WORK ON EUROPEAN STANDARDS A CONTENTION THE EUROPEAN INSTITUTE DENIES THE US GROUP HAS COMPLAINED TO THE EU WHICH SAID THE POLICY MIGHT HAVE TO BE CHANGED TO COMPLY WITH EU COMPETITION RULES THE INSTITUTE'S POLICY ADOPTED BUT NOT YET IMPLEMENTED REQUIRES ITS MEMBERS TO GRANT LICENSES TO ONE ANOTHER FOR PATENTED TECHNOLOGIES TO IMPLEMENT STANDARDS ON SAFETY COMPATIBILITY AND CONTINUITY FOR ITEMS SUCH AS CELLULAR PHONES AND RADIO BROADCASTING MATERIALS JAPAN'S PROTOTYPE FASTBREEDER REACTOR KNOWN AS MONJU IS TO BEGIN A SELFSUSTAINING NUCLEAR REACTION AS PART OF PREPARATIONS FOR FULL OPERATION OF THE 545 BILLION FACILITY BY 1996 THE PROJECT IS AIMED AT REDUCING JAPAN'S NEED TO IMPORT MOST OF ITS ENERGY BY DEVELOPING A POWER SOURCE THAT MOST NATIONS HAVE REJECTED AS UNFEASIBLE THE REACTOR BURNS PLUTONIUM REFINED FROM THE BYPRODUCT OF CONVENTIONAL REACTORS AND PRODUCES STILL MORE PLUTONIUM IF THE MONJU TESTS SUCCEED A DEMONSTRATION REACTOR WOULD BE BUILT AND A COMMERCIAL REACTOR COULD FOLLOW IN THE YEAR 2020 GUANGZHOU THE CAPITAL OF GUANGDONG PROVINCE IN SOUTHERN CHINA EXPECTS FOREIGN INVESTMENT TO COVER AT LEAST 70 OF THE 115 BILLION IN COSTS FOR A NEW INTERNATIONAL AIRPORT SCHEDULED TO OPEN IN 1997 HANDLING 20 MILLION PASSENGERS A YEAR THE CITY FORMERLY CANTON IS NEGOTIATING WITH FOREIGN MANUFACTURERS AND FINANCIAL COMPANIES MOST OF THE FOREIGN CAPITAL WILL BE USED FOR IMPORTS SUCH AS TELECOMMUNICATIONS EQUIPMENT TO SPEED AIRPORT CONSTRUCTION CHINA LATE LAST YEAR ALLOWED FOREIGN FINANCING AND MANAGEMENT GUANGDONG PLANS SEVERAL NEW AIRPORTS PRIME MINISTER TANSU CILLER SAID TURKEY CAN HALT A DEEPENING ECONOMIC CRISIS ONLY THROUGH PRICE INCREASES LAYOFFS AND OTHER PAINFUL MOVES HER NATIONALLY BROADCAST MESSAGE WAS A PRELUDE TO AN AUSTERITY PACKAGE EXPECTED TO BE UNVEILED TODAY THE MEASURES ARE LIKELY TO INCREASE PRICES BETWEEN 40 AND 90 FOR UNPROFITABLE STATE ENTERPRISES' PRODUCTS INCLUDING CRUDE OIL TOBACCO ALCOHOLIC BEVERAGES AND SUGAR AND POSTAL AND AIRLINE SERVICES THE GOVERNMENT HOPES TO TAME THE INFLATION RATE NOW ABOUT 70 A YEAR AND STRENGTHEN THE CURRENCY WHICH HAS FALLEN MORE THAN 70 AGAINST THE US DOLLAR THIS YEAR CHINA NEXT MONTH WILL INTRODUCE RULES TO CRACK DOWN ON FOREIGN JOINT VENTURES THAT ALLEGEDLY CHEAT THEIR CHINESE PARTNERS BY INFLATING THE VALUE OF THEIR ASSETS THE CHINA DAILY SAID THE REGULATIONS WOULD HELP CURB FRAUD MORE EFFECTIVELY THE REPORT SAID MANY FOREIGN INVESTORS SUPPLY THEIR CHINESE PARTNERS WITH OUTDATED EQUIPMENT AND TECHNOLOGY BUT ASSIGN THEM ARTIFICIALLY HIGH VALUES ALLOWING THE FOREIGN PARTNERS TO CLAIM A DISPROPORTIONATELY LARGE SHARE OF PROFITS TYPICALLY DETERMINED BY THE AMOUNT OF EACH SIDE'S INVESTMENT THE NEW PROCEDURES ARE DESIGNED TO HELP AUTHORITIES EVALUATE FOREIGN BUSINESS INVESTMENTS MORE ACCURATELY CHINA HAS MORE THAN 170000 FOREIGNFUNDED VENTURES WITH TOTAL INVESTMENT OF ABOUT 60 BILLION MOSCOW POLICE DETAINED THREE SUSPECTS IN A BREAKIN AT THE PRIVATE TORIBANK THAT NETTED FOUR ROBBERS 564000 WHILE FRAUD HAS FLOURISHED AT RUSSIA'S NEW COMMERCIAL BANKS ROBBERIES ARE RARE AIR TRAFFIC IN POLAND WAS GROUNDED BY A FAILURE OF COMMUNICATIONS AND NAVIGATION SYSTEMS AFTER HEAVY RAINS CAUSED A CABLE BREAK NEAR WARSAW'S AIRPORT ONE FATALITY WAS LINKED TO A FIRE IN THE TOPRATED FORTE GRAND HOTEL IN AMMAN JORDAN BELIEVED CAUSED BY BURNING TOBACCO IN THE LOBBY CARPET OFFICIALS DIDN'T RULE OUT ARSON ON THE RISE AS MUSLIM FUNDAMENTALISTS SEEK STRICTER ADHERENCE TO ISLAMIC LAWS 9404050129 940405 VOLT INFORMATION SCIENCES NEW YORK VOLT INFORMATION SCIENCES INC SAID IT AGREED TO SELL FOR ABOUT 164 MILLION ITS 50 INTEREST IN PACIFIC VOLT INFORMATION SYSTEMS A JOINT VENTURE WITH A UNIT OF PACIFIC TELESIS GROUP THE VENTURE COMPOSES TELEPHONE DIRECTORIES IN CALIFORNIA FOR PACIFIC BELL DIRECTORY VOLT INFORMATION SAID THE SALE WOULD RESULT IN A GAIN OF 58 MILLION OR 120 A SHARE IN THE SECOND QUARTER ENDING APRIL 29 VOLT INFORMATION IS A TECHNICAL SERVICES HUMAN RESOURCES COMPUTER SYSTEMS AND ELECTRONICS MANUFACTURING COMPANY 9404050128 940405 TECHNOLOGY & HEALTH NOVELL PICKS HEWLETTPACKARD VETERAN FRANKENBERG TO SUCCEED CEO NOORDA BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL NOVELL INC HAS SELECTED A HEWLETTPACKARD CO SENIOR EXECUTIVE TO SUCCEED CHIEF EXECUTIVE RAYMOND NOORDA ROBERT FRANKENBERG 46 YEARS OLD GENERAL MANAGER OF HP'S PERSONALINFORMATION PRODUCTS GROUP IS EXPECTED TO ANNOUNCE TODAY THAT HE WILL JOIN NOVELL AS HEIR TO MR NOORDA WHO HAS SAID HE PLANS TO STEP DOWN AS THE SOFTWARE COMPANY'S CHIEF EXECUTIVE THIS SUMMER NEITHER MR FRANKENBERG NOR NOVELL BASED IN PROVO UTAH WOULD COMMENT BUT PEOPLE FAMILIAR WITH THE SELECTION SAID THE TWO PARTIES ARE IN FINAL CONTRACT NEGOTIATIONS LAST WEEK THE WALL STREET JOURNAL REPORTED THAT MR FRANKENBERG WAS AMONG THE FINALISTS TO SUCCEED MR NOORDA WHO HAS SAID HE INTENDS TO REMAIN CHAIRMAN OF NOVELL'S BOARD MR FRANKENBERG WHO SPENT THE LAST QUARTERCENTURY AT ELECTRONICS GIANT HP IS A DRIVEN MANAGER WITH BROAD EXPERIENCE IN SOFTWARE BIG INFORMATION SYSTEMS AND PERSONAL COMPUTING PEOPLE FAMILIAR WITH THE CHOICE SAY HE IS AMONG ONLY A HANDFUL OF EXECUTIVES WITH THE TECHNICAL BREADTH AND MANAGEMENT EXPERTISE NECESSARY TO LEAD NOVELL IN HIS CURRENT JOB HE IS CREDITED WITH TURNING HP'S ONCELACKLUSTER PC BUSINESS INTO A RISING STAR THE HIRING OF MR FRANKENBERG COMES AT A CRITICAL TIME FOR NOVELL WHICH IS FIGHTING AGAINST MICROSOFT CORP THE WORLD'S BIGGEST SOFTWARE SUPPLIER ON VIRTUALLY ALL FRONTS LAST MONTH NOVELL ANNOUNCED ONE OF THE BIGGESTEVER SOFTWARE ACQUISITIONS BY AGREEING TO PURCHASE WORDPERFECT CORP AND THE SPREADSHEET BUSINESS OF BORLAND INTERNATIONAL INC MEANWHILE NOVELL IS STRUGGLING TO ABSORB ITS 1993 ACQUISITION OF UNIX SYSTEMS LABORATORY WHICH SUPPLIES BASIC SOFTWARE FOR HIGHEND COMPUTERS FINALLY NOVELL IS GRAPPLING WITH HOW BEST TO DEFEND ITS CORE BUSINESS PROVIDING SOFTWARE THAT ALLOWS PCS TO SHARE FILES AND PRINTERS FROM MICROSOFT'S ATTACK ANALYSTS SAID MR FRANKENBERG IS A SOLID CHOICE HE SEEMS TO BE A GOOD FIT FOR NOVELL SAID RICHARD SHERLUND AN ANALYST FOR GOLDMAN SACHS THIS WILL BE A POSITIVE FOR THE COMPANY WHICH HAS BEEN SADDLED WITH THE SUCCESSION ISSUE FOR SOME YEARS ONE OUTSTANDING QUESTION REMAINS OVER MR NOORDA'S CONTINUING ROLE IN NOVELL IN RECENT WEEKS MR NOORDA WHO ESSENTIALLY BUILT NOVELL FROM SCRATCH OVER THE PAST 12 YEARS POINTEDLY NOTED HIS DESIRE TO REMAIN ACTIVELY INVOLVED IN COMPANY AFFAIRS EVEN PAST HIS 70TH BIRTHDAY THIS SUMMER PEOPLE FAMILIAR WITH HIS PLANS HOWEVER SAID HE HAS ASSURED MR FRANKENBERG WIDE LATITUDE IN RUNNING NOVELL THE JOB SURELY WILL TEST THE METTLE OF MR FRANKENBERG HE CERTAINLY HAS CHALLENGES AHEAD FOR HIM TO INTEGRATE ALL THESE ACQUISITIONS MR SHERLUND SAID THE PURCHASE OF WORDPERFECT THE FOURTHLARGEST SOFTWARE SUPPLIER WHOSE NAME IS SYNONYMOUS WITH WORDPROCESSING PROGRAMS REPRESENTS THE BIGGEST CHALLENGE SINCE THE ACQUISITION NOVELL'S STOCK HAS FALLEN BY MORE THAN 25 AS INVESTORS FRET THAT NOVELL OVERPAID AND THAT WORDPERFECT'S SALES ARE STAGNATING HOWEVER MR FRANKENBERG IS BELIEVED TO HAVE APPROVED OF THE WORDPERFECT DEAL AND WORDPERFECT'S TWO MAJOR SHAREHOLDERS THE COMPANY'S COFOUNDERS ARE WILLING TO RIDE NOVELL'S STOCK DOWN BECAUSE OF THEIR FAITH IN THE COMBINATION IN NASDAQ STOCK MARKET TRADING YESTERDAY NOVELL STOCK CLOSED AT 16875 DOWN 125 9404050127 940405 WHO'S NEWS DRAVO CORP SAYS LOSS TO TOP EXPECTATIONS CHAIRMAN STEPS DOWN PITTSBURGH DRAVO CORP SAID IT EXPECTS TO REPORT A LARGER THAN EXPECTED FIRSTQUARTER LOSS AND THAT CHAIRMAN WILLIAM G ROTH 55 YEARS OLD WILL BE REPLACED BY THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER CARL A TORBERT JR 58 THE LIME PRODUCER BLAMED THE LOSS ON BAD WEATHER A MAJOR UTILITY CUSTOMER OUTAGE AND A ONETIME CHARGE FOR THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE FOR POSTEMPLOYMENT BENEFIT COSTS DRAVO NAMED SENIOR VICE PRESIDENT CARL A GILBERT 52 TO BE PRESIDENT AND CHIEF OPERATING OFFICER IN LATE NEW YORK STOCK EXCHANGE TRADING DRAVO WAS QUOTED AT 10625 DOWN 25 CENTS MR TORBERT WHO WILL CONTINUE AS CHIEF EXECUTIVE OFFICER DESCRIBED THE MANAGEMENT CHANGES AS BEING PART OF OUR PLAN TO FURTHER CONSOLIDATE OPERATIONS AND REDUCE EXPENSES IN RESPONSE TO POOR SHORTTERM EARNINGS PERFORMANCE AT OUR ANNUAL MEETING IN APRIL WE WILL HAVE IN PLACE SPECIFIC PLANS FOR RESPONDING TO WHAT HAS BEEN A DISAPPOINTING FIRST QUARTER AND THE OUTLOOK FOR FLAT EARNINGS INTO 1995 MR TORBERT SAID IN A STATEMENT MR ROTH WHOM THE COMPANY SAID WAS RETIRING WILL REMAIN A DIRECTOR FOR 1993 DRAVO REPORTED A LOSS OF 177000 OR 18 CENTS A SHARE ON REVENUE OF 2776 MILLION THAT COMPARED WITH 1992 NET INCOME OF 119 MILLION OR 63 CENTS A SHARE ON REVENUE OF 273 MILLION 9404050126 940405 TECHNOLOGY & HEALTH AMD'S PROFIT JUMPED BY 38 IN FIRST QUARTER BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL ADVANCED MICRO DEVICES CORP EXCEEDED WALL STREET ESTIMATES WITH A 38 JUMP IN FISCAL FIRSTQUARTER PROFIT BUT SOME ANALYSTS ARE NOW WORRYING ABOUT THE COMPANY'S PROSPECTS FOR THE SECOND HALF THE SEMICONDUCTOR MAKER'S NET INCOME FOR THE PERIOD ENDED MARCH 27 ROSE TO 846 MILLION OR 85 CENTS A SHARE FROM 615 MILLION OR 63 CENTS A SHARE IN THE YEAREARLIER PERIOD ANALYSTS HAD BEEN EXPECTING ABOUT 66 CENTS FOR THE LATEST PERIOD AMD SAID SALES INCREASED 26 TO 5131 MILLION FROM 4074 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AMD SHARES FELL 25 CENTS TO 31 NEARLY ALL OF AMD'S SURGE CAME FROM SALES OF ITS CLONE OF INTEL CORP'S 486 MICROPROCESSOR THE MOST POPULAR ELECTRONIC BRAIN FOR PERSONAL COMPUTERS AMD SAID IT SOLD MORE THAN 900000 486 CHIPS IN THE QUARTER THAT COMPARES WITH JUST 350000 IN THE FOURTH QUARTER WHEN A PRODUCTION PROBLEM HELD DOWN SHIPMENTS BY ABOUT 50000 UNITS A MARCH 10 FAVORABLE JURY VERDICT IN A COPYRIGHT BATTLE WITH INTEL IS MAKING PC MAKERS MORE COMFORTABLE ABOUT BUYING FROM AMD WITH DEMAND ASSURED THE COMPANY FACES A DIFFERENT PROBLEM NOT ENOUGH FACTORIES AMD'S PRODUCTION CAPACITY IS EXPECTED TO PEAK IN THE SECOND QUARTER AT ABOUT ONE MILLION UNITS THE COMPANY SAID AND IT WON'T GET RELIEF UNTIL DIGITAL EQUIPMENT CORP BEGINS MAKING CHIPS FOR AMD IN THE FOURTH QUARTER A MAJOR NEW AMD FACTORY WON'T BEGIN VOLUME PRODUCTION UNTIL LATER 1995 THIS QUARTER WILL BE SOMETHING OF A ONETIME PHENOMENON SAID MARK EDELSTONE AN ANALYST AT PRUDENTIAL SECURITIES RESEARCH THEIR INTERNAL CAPACITY IS COMING ON LINE ABOUT A YEAR LATER THAN THE COMPANY WOULD HAVE LIKED INDEED ELI SAYEGH AN ANALYST AT HANCOCK INSTITUTIONAL EQUITY SERVICES DECIDED TO DOWNGRADE HIS RECOMMENDATION ON AMD'S SHARES TO A HOLD FROM A BUY AFTER THE CLOSE OF TRADING YESTERDAY HE REASONS THAT AMD'S PROFIT WILL BEGIN TO FALL IN THE THIRD QUARTER AS 486 SHIPMENTS REMAIN STEADY AND COMPETITION CAUSES PRICES TO FALL SHARPLY I THINK THE PRICES ARE GOING TO JUST FALL OFF A CLIFF IN THE SECOND HALF HE SAID WJ SANDERS AMD'S CHIEF EXECUTIVE OFFICER SAID THE COMPANY EXPECTS SECONDQUARTER REVENUE TO GROW BUT NOTED THAT PROSPECTS WERE LINKED TO DEMAND FOR HIGHPERFORMANCE 486 MODELS THAT COMMAND RELATIVELY HIGH PRICES SEPARATELY THE THE SUNNYVALE CALIF COMPANY ANNOUNCED A SHELF REGISTRATION TO RAISE 400 MILLION IN DEBT OR EQUITY SECURITIES WHEN MARKET CONDITIONS PERMIT IT ALSO PLANS TO REDEEM ALL OF ITS CONVERTIBLE PREFERRED AND DEPOSITARY SHARES 9404050125 940405 TECHNOLOGY & HEALTH SYMANTEC CORP AGREES TO BUY CENTRAL POINT IN STOCK TRANSACTION CUPERTINO CALIF SYMANTEC CORP SAID IT AGREED TO PURCHASE CENTRAL POINT SOFTWARE INC FOR SHARES VALUED AT ABOUT 64 MILLION THE DEAL WHICH REFLECTS THE QUICKENING CONSOLIDATION OF THE SOFTWARE INDUSTRY STRENGTHENS SYMANTEC'S POSITION IN THE MARKET FOR SOFTWARE UTILITIES WHICH ARE PROGRAMS THAT ENSURE THE SMOOTH OPERATION OF PERSONAL COMPUTERS CENTRAL POINT A CLOSELY HELD FIRM IN BEAVERTON ORE WAS SYMANTEC'S LARGEST COMPETITOR BOTH COMPANIES HAVE FOUND IT HARD TO EXPAND LATELY BECAUSE OF INROADS INTO THE UTILITIES MARKET BY MICROSOFT CORP WHOSE NEWEST VERSION OF THE STANDARD DOS OPERATING SYSTEM CONTAINS BASIC UTILITIES FOR THE FIRST TIME THE REAL MOTIVATION FOR THE DEAL IS THAT THE ECONOMIES OF SCALE GIVES US THE RESOURCES TO DEVELOP PROGRAMS THAT ENHANCE MICROSOFT'S FORTHCOMING OPERATING SYSTEM CODENAMED CHICAGO AND SUPPORT THE BURGEONING NUMBER OF PC NETWORKS SAID GORDON EUBANKS SYMANTEC'S CHIEF EXECUTIVE SYMANTEC'S STOCK ROSE 375 CENTS TO 16 IN NASDAQ STOCK MARKET TRADING AS PART OF THE DEAL SHAREHOLDERS OF CENTRAL POINT WHICH POSTED SALES OF ABOUT 60 MILLION LAST YEAR WILL RECEIVE ABOUT FOUR MILLION SHARES OF SYMANTEC STOCK CHUCK BOESENBERG CENTRAL POINT'S CHIEF EXECUTIVE WILL GAIN A SEAT ON SYMANTEC'S BOARD 9404050124 940405 KU ENERGY UNIT INVESTMENTS LEXINGTON KY A UNIT OF KU ENERGY CORP SAID IT PLANS TO INVEST ABOUT 12 MILLION THROUGH 1997 IN FOUR POWER PROJECTS BEING DEVELOPED BY TENASKA INC CLOSELY HELD TENASKA OF OMAHA NEB DEVELOPS GASFIRED COGENERATION AND INDEPENDENT POWER GENERATION PROJECTS THE KU ENERGY UNIT KNOWN AS KU CAPITAL CORP WILL PURCHASE EQUITY INTERESTS IN EXISTING COGENERATION PROJECTS DEVELOPED BY TENASKA IN PARIS TEXAS AND FERNDALE WASH AS WELL AS TWO ADDITIONAL PROJECTS UNDER DEVELOPMENT 9404050123 940405 DIVIDEND INCREASES SET A 13YEAR RECORD IN THE FIRST QUARTER NEW YORK THE NUMBER OF COMPANIES BOOSTING DIVIDENDS IN THE FIRST QUARTER OF 1994 SET A 13YEAR HIGH ACCORDING TO STANDARD & POOR'S CORP S&P REPORTED 551 DIVIDEND INCREASES IN THE THREE MONTHS THE HIGHEST NUMBER SINCE 701 COMPANIES RAISED DIVIDENDS IN THE FIRST QUARTER OF 1981 THE FIGURE REPRESENTS A 24 RISE FROM 443 IN THE YEAREARLIER FIRST QUARTER S&P ALSO SAID THE FIRST QUARTER OF 1994 SAW THE FEWEST UNFAVORABLE DIVIDEND ACTIONS DECREASES AND OMISSIONS SINCE THE LIKE PERIOD IN 1984 DESPITE SOME PICKUP IN NEGATIVE DIVIDEND MOVES IN MARCH S&P SAID 20 COMPANIES REDUCED DIVIDENDS AND 23 OMITTED PAYMENTS IN THE FIRST QUARTER THE TOTAL OF 43 UNFAVORABLE ACTIONS COMPARED WITH 63 IN THE 1993 FIRST QUARTER WAS THE LOWEST SINCE 40 NEGATIVE ACTIONS IN THE 1984 FIRST QUARTER THE GENERALLY BRIGHT DIVIDEND PICTURE REFLECTS IMPROVED BUSINESS CONFIDENCE SAID ARNOLD KAUFMAN EDITOR OF THE OUTLOOK S&P'S WEEKLY INVESTMENTADVISORY NEWSLETTER WE EXPECT MORE DIVIDEND INCREASES FOR ALL OF 1994 THAN IN ANY YEAR SINCE 1983 1833 AND PERHAPS SINCE 1981 2160 KAUFMAN EXPECTS TO SEE DIVIDEND GROWTH FOR THE S&P 500STOCK INDEX OF 7 TO 8 THIS YEAR DUE IN PART TO COMPANIES' CONSERVATIVE DIVIDEND APPROACH OF RECENT YEARS DIVIDENDS ON THE S&P 500 GREW ONLY 25 IN 1993 AND 06 IN 1992 AND DECLINED 1 IN 1991 HE SAID 9404050122 940405 MARKETING & MEDIA HOME SHOPPING CREDIT CARD ST PETERSBURG FLA HOME SHOPPING NETWORK INC SAID IT LAUNCHED A PRIVATE LABEL CREDIT CARD THE CLUB CARD WHICH MAY BE USED TO MAKE PURCHASES FROM THE TELEVISION SHOPPING SERVICE HOME SHOPPING SAID ABOUT 900000 CUSTOMERS HAVE RECEIVED PREAPPROVED APPLICATIONS FOR THE CARD WHICH IS SERVICED BY GE CAPITAL CORP A UNIT OF GENERAL ELECTRIC CO THE CARD HAS NO ANNUAL FEE 9404050121 940405 REALTY GROUP BUYS 28 PROPERTIES RICHMOND VA UNITED DOMINION REALTY TRUST INC SAID IT EXECUTED CONTRACTS TO PURCHASE A GROUP OF 28 APARTMENT COMMUNITIES WITH 5882 UNITS FOR ABOUT 188 MILLION ALL BUT ONE OF THE PROPERTIES ARE LOCATED IN THE SOUTHEAST FROM DELAWARE TO FLORIDA CLOSING SUBJECT TO DUE DILIGENCE IS EXPECTED IN JULY UNITED DOMINION A REAL ESTATE INVESTMENT TRUST OWNS 18562 APARTMENTS IN THE SOUTHEAST AND TWO MILLION SQUARE FEET OF SHOPPING CENTERS AND OTHER COMMERCIAL SPACE 9404050120 940405 CREDIT RATINGS S&P LOWERS RATINGS ON DEBT OF TWO UNITS OF ALLEGHENY POWER NEW YORK STANDARD & POOR'S CORP LOWERED ITS DEBT RATINGS ON TWO ALLEGHENY POWER SYSTEM INC SUBSIDIARIES CITING AMONG OTHER REASONS HEAVY CONSTRUCTION COSTS AND HIGH DIVIDEND PAYOUTS THE RATINGS AGENCY LOWERED THE SENIOR SECURED DEBT RATING FOR THE UTILITY HOLDING COMPANY'S POTOMAC EDISON CO TO SINGLEAPLUS FROM DOUBLEAMINUS AND PREFERRED STOCK TO SINGLEA FROM SINGLEAPLUS FOR POTOMAC EDISON ABOUT 531 MILLION IN DEBT AND 63 MILLION IN PREFERRED STOCK WERE AFFECTED S&P ALSO LOWERED RATINGS OF MONONGAHELA POWER CO'S SENIOR SECURED DEBT TO SINGLEAPLUS FROM DOUBLEAMINUS AND ITS PREFERRED STOCK TO SINGLEA FROM SINGLEAPLUS ABOUT 523 MILLION IN DEBT AND 64 MILLION IN PREFERRED STOCK WERE AFFECTED S&P AFFIRMED ITS RATINGS FOR WEST PENN POWER CO AND ALLEGHENY POWER SYSTEM THE RATINGS AGENCY SAID THE DOWNGRADES AT THE TWO UNITS REFLECT IN PART BURDENSOME CONSTRUCTION COSTS RELATED TO CLEAN AIR ACT COMPLIANCE EXTERNAL FINANCING STRESS RATE RELIEF NEEDS A HIGH COMMON DIVIDEND PAYOUT RATIO TO SHAREHOLDERS AND SUBPAR FINANCIAL MEASURES RELATIVE TO THEIR BUSINESS POSITIONS WE ARE VERY DISAPPOINTED WITH THIS DECISION PARTICULARLY SINCE FINANCIALLY WE ARE IN BETTER SHAPE THAN WE WERE LAST YEAR A SPOKESMAN FOR ALLEGHENY POWER SYSTEM SAID AND WE ARE PARTICULARLY DISAPPOINTED BECAUSE WE HAVE A BIG YEAR OF FINANCING AHEAD OF US TO PAY FOR CLEAN AIR ACT COMPLIANCE 9404050119 940405 TECHNOLOGY & HEALTH MILES TO END THERAPEUTIC SWITCHES' AFTER STATES OPPOSE DRUGPURCHASE PLAN BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MILES INC REACHED AN AGREEMENT WITH 11 STATE ATTORNEYS GENERAL TO END ITS PRACTICE OF PAYING PHARMACISTS TO COUNSEL PATIENTS ABOUT ITS HEART DRUG ADALAT CC G OLIVER KOPPELL NEW YORK STATE ATTORNEY GENERAL SAID IN A STATEMENT THAT MILES WAS PAYING PHARMACISTS 35 A PATIENT TO PUSH ADALAT CC AND SWITCH THEM FROM PFIZER INC'S POPULAR PROCARDIA XL ALTHOUGH SLIGHTLY DIFFERENT BOTH DRUGS ARE EXTENDEDRELEASE FORMS OF NIFEDIPINE USED TO TREAT HIGH BLOOD PRESSURE THE PROGRAM TURNS THE PHARMACIST INTO A SHILL FOR THE DRUG MANUFACTURER MR KOPPELL SAID ADDING THAT PATIENTS WEREN'T TOLD THAT THEIR PHARMACISTS WERE BEING PAID BY MILES MILES THE PITTSBURGH PA PHARMACEUTICAL AND CHEMICAL SUBSIDIARY OF GERMANY'S BAYER AG SAID ITS PROGRAM WAS LAWFUL AND CONSTRUCTIVE BUT IT SETTLED THE MATTER TO AVOID THE TIME AND EXPENSE OF LITIGATION WE WERE COMPENSATING PHARMACISTS FOR THEIR PROFESSIONAL SERVICES AS THEY COUNSELED PATIENTS AND DISCUSSED THE PROPER USE OF ADALAT CC A MILES SPOKESMAN SAID ADDING THE PROGRAM WASN'T EXPLICITLY INTENDED TO SWITCH PATIENTS FROM PROCARDIA XL ADALAT CC IS PRICED 25 LOWER AT WHOLESALE THAN THE COMPETING DRUG THE COMPANY NOTED ADDING MILES CONTINUES TO BELIEVE PATIENTS FIND IT USEFUL TO LEARN FROM THEIR PHARMACISTS ABOUT THE AVAILABILITY OF NEW SAFE EFFECTIVE AND LESS EXPENSIVE PRODUCTS SUCH AS ADALAT CC THE STATES' CHALLENGE IS ONE OF THE FIRST AGAINST THE GROWING PHENOMENON OF THERAPEUTIC SWITCHES A PRACTICE PIONEERED BY MANAGEDCARE PROVIDERS OF SUBSTITUTING ONE BRANDED DRUG FOR A SIMILAR USUALLY CHEAPER BRAND THERAPEUTIC SUBSTITUTION WHICH GAVE MANAGEDCARE BUYERS A POWERFUL TOOL TO NEGOTIATE DISCOUNTS FROM DRUG COMPANIES IS BEHIND MUCH OF THE CURRENT TURMOIL IN THE PHARMACEUTICAL INDUSTRY DRUG COMPANIES HAVE BEEN SCRAMBLING TO FIND A WAY TO MAKE THERAPEUTIC SUBSTITUTION WORK FOR THEM MANY DRUG COMPANIES OFFER STEEP DISCOUNTS TO MANAGEDCARE BUYERS WHO IN TURN ENCOURAGE PHYSICIANS AND PHARMACISTS TO FAVOR THE DISCOUNTED DRUG TO CUT COSTS BUT IN DIRECTLY COMPENSATING PHARMACISTS MILES WENT TOO FAR ACCORDING TO THESE STATES INVOLVED IN THE AGREEMENT ARIZONA CONNECTICUT ILLINOIS MASSACHUSETTS MINNESOTA MISSOURI NEW MEXICO NEW YORK NORTH CAROLINA TEXAS AND WISCONSIN IN ADDITION TO PAYING PHARMACISTS TO PROMOTE ADALAT CC THE COMPANY ALSO REQUIRED THEM TO PROVIDE THE PATIENTS' NAMES AND OTHER INFORMATION IN VIOLATION OF STATE PRIVACY LAWS ACCORDING TO THE NEW YORK AND MINNESOTA ATTORNEYS GENERAL UNDER THE SETTLEMENT MILES IS BARRED FROM ANY SUCH REIMBURSEMENT PROGRAMS TO PHARMACISTS AND IS REQUIRED TO ELIMINATE THE PATIENT INFORMATION FROM ITS RECORDS THE COMPANY WILL ALSO PAY EACH STATE 55000 TOTALING 605000 FOR COSTS THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE IS INVESTIGATING OTHER DRUG COMPANIES SAID SHIRLEY STARK ASSISTANT ATTORNEY GENERAL WHAT WE'RE WORRIED ABOUT IS THE INDEPENDENCE OF THE PHARMACIST BEING UNDERMINED IN SOME WAY BY GETTING CASH SHE SAID BUT SHE ADDED WE DON'T WANT TO UNDERMINE COMPETITION EITHER OBVIOUSLY LOWER PRICES ARE BETTER FOR CONSUMERS THE MINNESOTA STATE ATTORNEY GENERAL'S OFFICE ALSO IS REVIEWING OTHER PROGRAMS INVOLVING SIMILAR ISSUES SAID DAVID WOODWARD ASSISTANT ATTORNEY GENERAL 9404050118 940405 INTERNATIONAL JAPAN'S VEHICLE SALES FALL 38 TOKYO JAPAN'S SALES OF NEW CARS TRUCKS AND BUSES AS MEASURED BY REGISTRATIONS FELL 38 IN MARCH TO 679170 UNITS FROM A YEAR EARLIER THE JAPAN AUTOMOBILE DEALERS' ASSOCIATION ANNOUNCED THE ASSOCIATION SAID MARCH MARKED THE 12TH CONSECUTIVE MONTH OF YEARONYEAR DECLINES IN JAPAN'S TOTAL AUTO SALES SALES OF PASSENGER CARS HAVE FALLEN BELOW THE PREVIOUS YEAR'S LEVELS SINCE NOVEMBER 1993 AS SMALLSIZED CARS HAVE DONE SINCE APRIL 1993 HOWEVER THE YEARONYEAR DECLINE IN TOTAL MARCH SALES WAS MUCH SMALLER THAN IN FEBRUARY WHEN THE TOTAL FELL 84 TO 386523 UNITS 9404050117 940405 PSB HOLDINGS CORP BUYBACK XENIA OHIO PSB HOLDINGS CORP SAID ITS BOARD APPROVED A PROGRAM TO BUY BACK ABOUT 5 OF ITS COMMON SHARES FROM TIME TO TIME IN THE OPEN MARKET DURING THE NEXT SIX MONTHS PSB HOLDINGS WITH ASSETS OF 1885 MILLION HAD 2310672 SHARES OUTSTANDING AS OF DEC 31 1993 THE REPURCHASED SHARES WILL BECOME TREASURY SHARES TO BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING THE FUNDING OF STOCK OPTIONS THE SAVINGS BANK HOLDING COMPANY SAID 9404050116 940405 LILLY UNIT'S VENTURE IN GREECE INDIANAPOLIS ELI LILLY & CO SAID ITS ELI LILLY NEDERLAND BV UNIT AND DIONYSIOS S FILIOTIS OF ATHENS ESTABLISHED A JOINTVENTURE COMPANY TO MANUFACTURE AND DISTRIBUTE PHARMACEUTICAL AND HEALTHCARE PRODUCTS IN GREECE ELI LILLY SAID THE NEW COMPANY PHARMASERVELILLY SACI WILL BE LOCATED IN ATHENS AND SAID MR FILIOTIS HAS BEEN NAMED PRESIDENT AND MANAGING DIRECTOR OF THE NEW COMPANY LILLY SAID THE VENTURE WHICH WILL ENHANCE ITS PRESENCE IN GREECE IS PART OF ITS INCREASING FOCUS ON EXPANDING ITS GLOBAL PRESENCE 9404050115 940405 WHO'S NEWS NOVO NORDISK AS NOVO NORDISK AS BAGSVAERD DENMARK KEN G CAPUANO 47 YEARS OLD WAS NAMED PRESIDENT OF THE NOVO NORDISK PHARMACEUTICALS INC UNIT OF THE PRODUCER OF INDUSTRIAL ENZYMES AND PHARMACEUTICAL PRODUCTS THE UNIT BASED IN PRINCETON NJ IS THE US SALES AND MARKETING DIVISION OF THE PARENT COMPANY MR CAPUANO SUCCEEDS C HENK BLEEKER WHO IS BEING RELOCATED WITHIN THE COMPANY 9404050114 940405 PRINTING FIRM OPENS CREDIT LINE FORT WORTH TEXAS STEVENS GRAPHICS CORP SAID ITS SENIOR LENDERS AGREED TO A 20 MILLION TWOYEAR REVOLVING CREDIT LINE REPLACING A 18 MILLION REVOLVING CREDIT LINE SEPARATELY THE PRINT PRODUCTION SYSTEMS MANUFACTURER AGREED WITH ITS SUBORDINATED LENDERS TO MAKE A SIGNIFICANT REDUCTION IN THE 24 MILLION PRINCIPAL ON ITS SUBORDINATED DEBT IN EXCHANGE THE COMPANY SAID THE LENDERS AGREED TO A LOWER INTEREST RATE AND DEFERRED PAYMENTS 9404050111 940405 CREDIT MARKETS BOND PRICES FALL SHARPLY SALES BROAD LESSLIQUID MARKETS SPUR TREASURY ACTION MORE DECLINES SEEN BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN WILL THE BOND MARKET STOP PLUNGING MOST TRADERS AND MONEY MANAGERS WOULDN'T HAZARD A GUESS YESTERDAY THEY WERE TOO BUSY RUNNING FOR AN EXIT ALREADY JAMMED WITH FRIGHTENED INVESTORS AFTER MORE THAN TWO MONTHS OF PRICE DROPS ON THE FIRST FULL DAY OF TRADING SINCE THE GOVERNMENT RELEASED A REPORT SHOWING THE BIGGEST JUMP IN NONFARM PAYROLLS IN MORE THAN SIX YEARS INVESTORS PONDERED THEIR OPTIONS FOR PART OF THE MORNING THEN THEY BEGAN TO SELL LIKE CRAZY BY LATE YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND DROPPED 1 1/2 POINTS OR 15 FOR A BOND WITH 1000 FACE VALUE TO 86 7/32 A PRICE LEVEL MORE COMMON AMONG THE DEBT OF DEVELOPING NATIONS ITS YIELD SHOT UP TO 740 THE HIGHEST SINCE JANUARY 1993 FROM 726 ON FRIDAY SINCE FEB 4 WHEN THE FEDERAL RESERVE MADE THE FIRST OF TWO MOVES TO BOOST SHORTTERM INTEREST RATES THE PRICE OF THE 30YEAR BOND HAS DROPPED NEARLY 13 POINTS OR NEARLY 130 FOR A BOND WITH 1000 FACE VALUE YESTERDAY'S MARKET CAME AS CLOSE TO CAPITULATION AS IT COULD GET TRADERS SAID IT'S A CLASSIC THROWINTHETOWEL TIME SAID JOHN COSTAS HEAD OF GOVERNMENTBOND TRADING AT CS FIRST BOSTON INC THE LAST TIME I SAW THIS WAS IN APRIL 1987 HE ADDED YESTERDAY THERE WAS BROADBASED SELLING ACROSS ALL THE ASSET CLASSES ACCORDING TO MR COSTAS THE FEAR FACTOR HAS TAKEN OVER HE THINKS IT'S LIKELY THE BOND YIELD WILL ZOOM THROUGH 75 OR HIGHER BEFORE THE MARKET REGAINS ITS BEARINGS IT'S BEEN SO NASTY SAID BARBARA KENWORTHY A PORTFOLIO MANAGER AT DREYFUS CORP NOBODY IS READY TO STEP IN TO BE A HERO BECAUSE EVERYBODY WHO'S TRIED AS BOND PRICES PLUNGED HAS HAD THEIR HEAD HANDED TO THEM A STUMBLING BLOCK FOR THE BOND MARKET IN COMING DAYS WILL BE MUTUALFUND WITHDRAWALS MS KENWORTHY SAID SO FAR INVESTORS HAVEN'T STAGED A MASSIVE FLIGHT FROM THEIR BOND FUNDS BUT FUND MANAGERS ARE TERRIFIED THAT THEY MIGHT WHEN WE PRICE NAVS NET ASSET VALUES TODAY WE'RE GOING TO HAVE FRIDAY'S DROP AND TODAY'S DROP SHE SAID BECAUSE OF THE EASTER HOLIDAY MANY MONEY MANAGERS AND BOND TRADERS DIDN'T WORK ON FRIDAY WHEN THE MARCH EMPLOYMENT REPORT SHOOK THE BOND MARKET AND SET PRICES INTO A TAILSPIN I DON'T WANT TO SCARE ANYBODY BUT THAT MAY BE THE LARGEST DROP FOR A SINGLE DAY FOR MANY BOND FUNDS SHE ADDED YOU'RE LOOKING AT ALMOST FOUR POINTS OF DROPS IN ONE DAY FOR SOME FUNDS SHE SAID TO PROTECT HER PORTFOLIO AGAINST RISING INTEREST RATES MS KENWORTHY IS HOLDING MORE THAN 10 OF ASSETS IN CASH HER PORTFOLIO'S HIGHEST LEVEL SINCE 1989 SOME OF THE SELLING YESTERDAY PROBABLY CAME FROM SPECULATIVE ACCOUNTS THAT ARE HITTING LOSS LIMITS SAID MR COSTAS OF FIRST BOSTON THESE ACCOUNTS BETTER KNOWN AS HEDGE FUNDS OFTEN HAVE MAXIMUM LIMITS OF 20 TO 25 FOR LOSS OF PRINCIPAL BEFORE THEY ARE FORCED TO LIQUIDATE POSITIONS HE SAID MONEY MANAGERS AND OTHER INVESTORS WHO ARE HAVING A TOUGH TIME UNWINDING POSITIONS IN LESSLIQUID MARKETS NOTABLY MORTGAGEBACKED SECURITIES MUNICIPAL BONDS JUNK BONDS AND ESPECIALLY DEVELOPINGNATION DEBT ARE TURNING TO THE VERY LIQUID U S TREASURY MARKET TO RAISE CASH THAT PATTERN HAS EXACERBATED THE SELLOFF OF TREASURY SECURITIES IN THE MARKET FOR DEVELOPINGNATION DEBT THE FURIOUS TRADING MEANS BILLIONS OF DOLLARS OF TRADES ON WALL STREET HAVEN'T YET BEEN CLOSED BECAUSE OF COMPLICATED PAPERWORK THE SLOWNESS IN CLOSING TRADES MEANS A WIDENING GAP BETWEEN THE BID AND ASKED PRICES FOR THE DEBT PAPER AND BIGGER LOSSES FOR INVESTORS LOOKING TO GET OUT WHEN YOU DON'T GET THE LIQUIDITY YOU NEED IN THE MARKET FOR A FOREIGN LOAN THAT YOU WISH TO SELL SAID PAUL MASCO A DEBT TRADER AT SALOMON BROTHERS INC YOU END UP SELLING WHERE THE BIDS ARE AND THE EASIEST PLACE TO SELL IS THE U S TREASURY MARKET PETER HIRSCH HEAD OF GOVERNMENT TRADING AT SALOMON BROTHERS SAID THINGS COULD GET WORSE IN THE COMING DAYS AS EUROPEAN BOND MARKETS OPEN FOR TRADING AFTER A LONG EASTER HOLIDAY A LOT OF WHAT HAS DRIVEN US DOWN OVER THE LAST COUPLE OF MONTHS HASN'T NECESSARILY BEEN THE RESULT OF EVENTS IN THE U S BOND MARKETS MR HIRSCH SAID IT IS ALSO THE RESULT OF LEVERAGE IN OTHER MARKETS HE SAID THE INTERESTING DAY IS TODAY WHEN EUROPEAN BOND MARKETS OPEN IF EUROPE OPENS LOWER THAT WOULD CAUSE MORE MARGIN CALLS THROUGHOUT EUROPE FOR INVESTORS WHO TOOK OUT SHORTTERM LOANS TO FINANCE THEIR BOND POSITIONS HE EXPLAINED AS THE VALUE OF THESE POSITIONS DROPS BANKS AND OTHER LENDERS WILL ASK INVESTORS TO PUT UP MORE COLLATERAL AGAINST THE SHORTTERM LOANS AND FORCE THEM TO SELL SOME OF THEIR ASSETS HELPING THE MARKET MAINTAIN ITS GLOOMY MOOD WAS A REPORT FROM ECONOMIST HENRY KAUFMAN FORMER CHIEF ECONOMIST AT SALOMON BROTHERS INC MR KAUFMAN WHO RUNS A CONSULTING FIRM BEARING HIS NAME PREDICTED THAT IN THE YEARS TO COME SHORTTERM INTEREST RATES IN THE US MAY WELL RISE TO 7 AND THE LONGTERM TREASURY BOND YIELD MAY TRADE IN THE RANGE OF 9 TO 10 BY THE PEAK IN THE CYCLE THE CURRENT TARGET FOR THE FEDERAL FUNDS RATE AT WHICH BANKS MAKE OVERNIGHT LOANS TO EACH OTHER IS 3 1/2 MR KAUFMAN SAID THE UNPRECEDENTED GROWTH OF MUTUAL FUNDS SUCH AS EMERGINGMARKET FUNDS HAS INTRODUCED A FURTHER ELEMENT OF UNPREDICTABILITY INTO THE MARKETPLACE HE ALSO SAID THAT AMONG OTHER FACTORS INCREASING INTERNATIONALIZATION OF INVESTMENT FLOWS HAS LED TO A SITUATION IN WHICH SHOCKS ORIGINATING IN ONE MARKET CAN QUICKLY FAN OUT TO AGGRAVATE OTHER MARKETS AT THE SAME TIME MR KAUFMAN SAID THAT THERE WAS LITTLE RISK OF SHARPLY HIGHER INFLATION THE BANE OF BONDMARKET INVESTORS SINCE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN MANY TRADERS AND ANALYSTS BELIEVE THAT WHEN THE FEDERAL RESERVE NEXT ACTS TO RAISE INTEREST RATES IT WILL ENGINEER A HALFPERCENTAGEPOINT MOVE EACH OF THE FED'S TWO RATE HIKES SO FAR WAS IN A QUARTERPOINT INCREMENT SOME ARGUE THAT THE BOND MARKET WON'T STABILIZE UNTIL THE FED RAISES INTEREST RATES AGAIN CONTENDING THAT BOND INVESTORS NEED TO BE REASSURED THAT THE CENTRAL BANK REMAINS VIGILANT IN ITS BATTLE AGAINST INFLATION BUT OTHERS CONTEND THAT THE LATEST RISE IN YIELDS HAS LITTLE TO DO WITH FUNDAMENTALS AND THAT AN IMMEDIATE TIGHTENING MIGHT ONLY RESULT IN MORE HAVOC NO CORPORATE ISSUES WERE PRICED YESTERDAY AND TRADING SLOWED TO A TRICKLE TRADING IN THE INVESTMENTGRADE AND JUNKBOND MARKETS CLOSELY TRACKED TREASURYS IN VERY LIGHT THIN ACTIVITY IN THE INVESTMENTGRADE MARKET SPREADS WIDENED BY AS MUCH AS TWO TO FIVE BASIS POINTS AND PRICES FOLLOWED TREASURYS LOWER SECURITIES ARE STILL BEING OFFERED IN SUBSTANTIAL QUANTITY ACCORDING TO ONE INVESTMENTGRADE TRADER YOU ARE SEEING SIGNIFICANT BID LISTS IN PRICES IN THE JUNKBOND MARKET WERE ALSO DOWN BY ABOUT TWO POINTS PHILIPS ELECTRONICS NV THE DUTCH ELECTRONICS CONCERN IS CONSIDERING A YANKEE OFFERING OF 10YEAR OR 12YEAR SENIOR NOTES THAT WILL PROBABLY TOTAL 250 MILLION THROUGH LEAD UNDERWRITER JP MORGAN SECURITIES INC A SYNDICATE OFFICIAL SAID PHILIPS PLANS TO PRICE THE DEBT THIS WEEK IF MARKET CONDITIONS ALLOW YANKEES ARE OFFERINGS SOLD IN THE US BY FOREIGN ISSUERS SMITH'S FOOD & DRUG CENTERS INC FINALIZED PRICING DURING THE SESSION ON ITS 1524 MILLION THREETRANCHE DEBT OFFERING THROUGH MORGAN STANLEY & CO SMITH'S FOOD SALT LAKE CITY DEVELOPS OWNS AND OPERATES LARGE FOODANDDRUG CENTERS THE FIRST TRANCHE CONSISTS OF 119 MILLION OF 612 COUPON PASSTHROUGH CERTIFICATES WITH A 17YEAR BULLET PRICED 90 BASIS POINTS OVER THE TWOYEAR TREASURY THE SECOND TRANCHE CONSISTS OF 787 MILLION OF 864 COUPON CERTIFICATES WITH A FINAL MATURITY OF 182 YEARS AND AN AVERAGE LIFE OF 125 YEARS THE THIRD TRANCHE CONSISTS OF 618 MILLION OF 92 COUPON CERTIFICATES WITH AN AVERAGE LIFE OF 221 YEARS AND FINAL MATURITY OF 242 YEARS A NUMBER OF MUNICIPALBOND OFFERINGS WERE DELAYED YESTERDAY AS BOND PRICES PLUNGED INCLUDING PUERTO RICO ELECTRIC POWER AUTHORITY'S 525 MILLION REFUNDING AND POWERREVENUE BONDS A GROUP OF UNDERWRITERS LED BY BEAR STEARNS & CO HAD BEEN EXPECTED TO SELL THE BONDS THIS WEEK BUT THE SALE HAS BEEN PUT OFF FOR AT LEAST TWO WEEKS DUE TO MARKET CONDITIONS BEAR STEARNS SAID A 73 MILLION OFFERING OF REVENUE BONDS FROM THE MAINE TURNPIKE AUTHORITY WAS ALSO POSTPONED ACCORDING TO MANAGING UNDERWRITER PAINEWEBBER INC THERE'S ALSO A LENGTHY LIST OF OFFERINGS WITH A DAYTODAY PRICING STATUS WHICH INCLUDES SEVERAL OFFERINGS THAT HAD BEEN EXPECTED THIS WEEK THEY INCLUDE PENNSYLVANIA HIGHER EDUCATION FACILITY'S 2823 MILLION UNIVERSITY OF PENNSYLVANIA HEALTHSERVICES BONDS AND PORT AUTHORITY OF NEW YORK AND NEW JERSEY'S 100 MILLION 934D SERIES CONSOLIDATED BONDS CS FIRST BOSTON IS THE MANAGING UNDERWRITER FOR THE PENNSYLVANIA ISSUE AND DILLON READ & CO IS THE LEAD UNDERWRITER FOR THE PORTAUTHORITY BONDS MUNI OFFERINGS MAY JUST COME TO A SCREECHING HALT SAID DANIEL KEATING SENIOR MANAGING DIRECTOR AT BEAR STEARNS IN LATE TRADING MONDAY PRICES OF SOME MUNICIPAL ISSUES WERE MORE THAN THREE POINTS LOWER THAN LATE THURSDAY ACTIVITY WAS LIMITED FRIDAY BY THE GOOD FRIDAY HOLIDAY FLORIDA BOARD OF EDUCATION'S 5125 OF 2022 BONDS DROPPED 3 5/8 POINTS OR 3625 FOR A BOND WITH 1000 FACE VALUE TO 81 ITS YIELD ROSE TO 655 FROM 629 PRICES HELD SLIGHTLY LOWER LEVELS THROUGHOUT MOST OF THE MORNING BUT THE MARKET'S STABILITY WENT OUT THE DOOR LATE IN THE AFTERNOON WHEN PRICES BEGAN TO FALL WITH TREASURYS THAT HAPPENED EVEN THOUGH THERE WEREN'T SELLERS IN THE MARKET AT THAT POINT SAID A TRADER ON A MORTGAGE DESK AT A PRIMARY DEALER WE SAW SOME PEOPLE TRYING TO BOTTOM FISH BUT ONCE THEIR BIDS FELL THROUGH THERE WAS NO STOPPING THE DECLINE IN LATE TRADING THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 75S FOR APRIL DELIVERY WAS DOWN 1 13/32 AT 95 26/32 THE FEDERAL HOME LOAN MORTGAGE CORP GOLD 75S FOR APRIL WAS DOWN 1 2/32 AT 96 29/32 AND THE FEDERAL NATIONAL MORTGAGE ASSOCIATION 75S FOR APRIL WAS DOWN 1 2/32 AT 96 22/32 HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED APRIL 7 THE 13WEEK BILLS MATURE JULY 7 AND THE 26WEEK BILLS MATURE OCT 6 THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9404050109 940405 MID MAINE SAVINGS BANK AUBURN MAINE MID MAINE SAVINGS BANK SAID THE OFFICE OF THRIFT SUPERVISION ENDED ITS DIRECTIVES AGREEMENT WITH THE BANK ENTERED JUNE 9 MID MAINE SAID THE ENDING OF THE ORDER REFLECTS ITS CAPITAL COMPLIANCE SINCE SEPT 30 THE SAVINGS BANK HAD ASSETS OF 1793 MILLION AT YEAR'S END 9404050108 940405 SETTLEMENT IN CLASSACTION SUIT MONTVALE NJ MEDICAL MARKETING GROUP INC SAID A DELAWARE COURT APPROVED A SETTLEMENT OF A CLASSACTION SUIT AGAINST MEDICAL MARKETING MEDCO CONTAINMENT SERVICES INC MERCK & CO AND CERTAIN MEDCO AND MEDICAL MARKETING DIRECTORS THE SETTLEMENT CLEARS THE WAY FOR A SHAREHOLDER VOTE WEDNESDAY ON MEDCO'S PURCHASE OF THE 458 OF MEDICAL MARKETING THAT IT DOESN'T ALREADY OWN 9404050106 940405 WHO'S NEWS EZCONY INTERAMERICA INC EZCONY INTERAMERICA INC MIAMI JOHN A GALEA 38 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS ELECTRONICS DISTRIBUTOR MR GALEA SUCCEEDS CANDIDO SOSA 35 WHO LEFT LAST MONTH TO PURSUE OTHER CAREER OPPORTUNITIES MR GALEA HAD BEEN VICE PRESIDENT FINANCIAL PLANNING AT ATLANTIC GULF COMMUNITIES 9404050105 940405 HIGH COURT RULES STATES CAN'T IMPOSE HIGHER FEES ON OUTOFSTATE GARBAGE BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A VICTORY FOR THE WASTETREATMENT INDUSTRY THE SUPREME COURT SAID STATES MAY NOT IMPOSE HIGHER FEES ON THE DISPOSAL OF GARBAGE GENERATED BEYOND THEIR BORDERS EVEN IF THE FEES PURPORTEDLY REFLECT REGULATORY COSTS STRIKING DOWN AN OREGON SURCHARGE ON OUTOFSTATE SOLID WASTE THE HIGH COURT REITERATED THAT THE CONSTITUTION'S PROTECTION OF INTERSTATE COMMERCE GENERALLY PROHIBITS TAXES THAT FAVOR INSTATE BUSINESSES OVER OUTOFSTATE ONES WHILE THE 72 RULING FOCUSED ON GARBAGE IT ALSO COULD BE AN EFFECTIVE WEAPON FOR COMPANIES IN OTHER INDUSTRIES THAT ARE FIGHTING STATE REGULATORS OR TAX COLLECTORS YESTERDAY'S DECISION WAS THE LATEST IN A STRING OF HIGHCOURT VICTORIES FOR WASTEDISPOSAL COMPANIES SEEKING TO OPERATE IN LARGE GEOGRAPHIC MARKETS THE IMMEDIATE WINNERS WERE TWO COMPANIES THAT SHIPPED GARBAGE INTO OREGON FROM OTHER STATES OREGON WASTE SYSTEMS A UNIT OF WMX TECHNOLOGIES INC AND COLUMBIA RESOURCE CO A WASHINGTON STATE PARTNERSHIP ALTHOUGH THE WASTETREATMENT INDUSTRY HAS AN OVERABUNDANCE OF DUMP CAPACITY IN SOME AREAS CERTAIN STATES CONTINUE TO TRY TO LIMIT THE IMPORTATION OF OTHER PEOPLE'S GARBAGE WASTETREATMENT CONCERNS HAVE SUCCESSFULLY ATTACKED THESE RESTRICTIONS IN THE SUPREME COURT IN 1992 FOR EXAMPLE THE HIGH COURT SAID ALABAMA IMPROPERLY TAXED THE DISPOSAL OF HAZARDOUS WASTE COMING FROM OUTSIDE THE STATE MORE HEAVILY THAN THE SAME TYPE OF WASTE FROM WITHIN THE STATE YESTERDAY'S RULING REACHED FURTHER REJECTING OREGON'S CLAIM THAT ITS SURCHARGE MERELY MADE SHIPPERS OF OUTOFSTATE SOLID WASTE PAY THEIR FAIR SHARE OF THE COST OF DISPOSAL THE BROADLY WORDED MAJORITY OPINION WRITTEN BY JUSTICE CLARENCE THOMAS MAKES IT ALMOST IMPOSSIBLE FOR STATES TO IMPOSE HIGHER LEVIES ON OUTOFSTATE WASTE OREGON IMPOSED A 225ATON FEE ON OUTOFSTATE WASTE COMPARED WITH AN 85CENTATON LEVY ON INSTATE WASTE ALMOST ANY DIFFERENCE IN THE FEES WOULD AMOUNT TO UNCONSTITUTIONAL ECONOMIC PROTECTIONISM JUSTICE THOMAS SAID HE LEFT OPEN THE SLIM POSSIBILITY OF A DEFENSE THAT OREGON DIDN'T PRESENT THAT THE CONTENT OF THE OUTOFSTATE WASTE MAKES IT MORE EXPENSIVE TO HANDLE THAN INSTATE WASTE CHIEF JUSTICE WILLIAM REHNQUIST JOINED BY JUSTICE HARRY BLACKMUN DISSENTED OREGON WASTE SYSTEMS INC VS DEPT OF ENVIRONMENTAL QUALITY COLUMBIA RESOURCE CO VS DEPT OF ENVIRONMENTAL QUALITY IN OTHER ACTIONS THE SUPREME COURT 9404050104 940405 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 11/16 HIGH 3 1/2 LOW 3 1/2 NEAR CLOSING BID 3 9/16 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 372 30 TO 44 DAYS 375 45 TO 59 DAYS 385 60 TO 89 DAYS 392 90 TO 119 DAYS 4 120 TO 149 DAYS 405 150 TO 179 DAYS 415 180 TO 239 DAYS 430 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 382 30 DAYS 391 60 DAYS 402 90 DAYS CERTIFICATES OF DEPOSIT 313 ONE MONTH 328 TWO MONTHS 339 THREE MONTHS 373 SIX MONTHS 419 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 370 ONE MONTH 395 THREE MONTHS 425 SIX MONTHS BANKERS ACCEPTANCES 365 30 DAYS 380 60 DAYS 390 90 DAYS 405 120 DAYS 410 150 DAYS 415 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER FOREIGN PRIME RATES CANADA 675 GERMANY 574 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 856 60 DAYS 862 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 852 60 DAYS 859 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 625 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 286 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404050103 940405 WHO'S NEWS FARRAGUT MORTGAGE CO NAMES ROSS PRESIDENT MANSFIELD MASS FARRAGUT MORTGAGE CO NAMED W GENE ROSS PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDING STEPHEN DICKMANN AS PRESIDENT MR DICKMANN WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE MR ROSS WAS FORMERLY CHAIRMAN OF PARAGON MORTGAGE CORP SMYRNA GA THE POST OF CHIEF OPERATING OFFICER IS NEW FARRAGUT MORTGAGE ALSO SAID IT COMPLETED THE FIRST STAGE OF A FINANCING PLAN THE COMPANY SAID ITS VICE CHAIRMAN GEORGE BEGLEY AND JOHN LAKIAN A BOARD MEMBER HAVE AGREED TO PURCHASE 207000 IN FARRAGUT STOCK IN A PRIVATE PLACEMENT BY CONVERTING DEBT THEY HOLD TO EQUITY THE COMPANY ALSO SAID MR ROSS AND AN ASSOCIATE HAVE AGREED TO EXCHANGE 300000 OF PARAGON MORTGAGE COMMON STOCK FOR ONE MILLION FARRAGUT SHARES FARRAGUT SAID AN UNNAMED INVESTOR OF PARAGON MORTGAGE IS EXPECTED TO CONTRIBUTE ABOUT 200000 PARAGON COMMON SHARES IN EXCHANGE FOR FARRAGUT SHARES IN AN AMOUNT THAT HASN'T BEEN DETERMINED YET MR DICKMANN SAID THAT FARRAGUT EXPECTS TO LATER SELL THE PARAGON SHARES TO RAISE CAPITAL IN TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY FARRAGUT SHARES CLOSED AT 50 CENTS UP 125 CENTS 9404050102 940405 MARIETTA IS SEEN SEEKING SMALLER DEALS AFTER DECLINING TO BATTLE FOR GRUMMAN BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN MARIETTA CORP STILL WANTS TO GROW THROUGH ACQUISITIONS AS THE DEFENSE INDUSTRY SHRINKS BUT THE COMPANY'S REFUSAL TO FIGHT FOR GRUMMAN CORP SUGGESTS THAT ITS FUTURE DEALS MAY BE SMALLER AND FOR PIECES OF COMPANIES SOME ANALYSTS SAY MARTIN MARIETTA LOST OUT IN ITS FRIENDLY BID FOR GRUMMAN BY STICKING TO ITS INITIAL FEBRUARY OFFER OF 55 A SHARE OR 193 BILLION GRUMMAN'S BOARD DECLARED RIVAL DEFENSE CONTRACTOR LOS ANGELESBASED NORTHROP CORP THE WINNER WITH ITS CONSIDERABLY HIGHER BID OF 62 A SHARE OR 217 BILLION IN A LETTER TO GRUMMAN'S BOARD NORMAN AUGUSTINE MARTIN MARIETTA CHAIRMAN REITERATED HIS VIEW THAT 55 A SHARE IS A FULL AND FAIR PRICE ADDING WE DON'T BELIEVE THAT IT IS IN OUR SHAREHOLDERS' BEST INTERESTS TO INCREASE OUR OFFER ANALYSTS GENERALLY APPLAUDED MR AUGUSTINE'S CONSISTENCY AND DISCIPLINE IN REFUSING TO ENGAGE IN A COSTLY BIDDING WAR OVER GRUMMAN MARTIN MARIETTA THE BIG BETHESDA MD DEFENSEELECTRONICS AND AEROSPACE CONCERN ALSO HAS SAID IT WON'T ATTEMPT HOSTILE TAKEOVERS BUT SOME ANALYSTS SAID THEY DOUBTED THAT MARTIN MARIETTA'S STRATEGY PRIVATELY NEGOTIATED DEALS THAT KEEP OTHER SUITORS AWAY IS LIKELY TO SUCCEED IN THE WAKE OF NORTHROP'S SUCCESSFUL HOSTILE BID THE NORTHROP BID SIGNALS THE END OF NEGOTIATED DEALS IN THE DEFENSE BUSINESS SAID JACK MODZELEWSKI AN ANALYST AT PAINEWEBBER INC I DON'T SEE HOW ANOTHER BOARD OF DIRECTORS COULD DO A NEGOTIATED SALE BECAUSE YOU NEVER KNOW WHAT THE BEST PRICE IS UNTIL IT'S TESTED IN THE MARKETPLACE NORTHROP'S INTERVENTION WHICH CAME AFTER GRUMMAN BETHPAGE NY AND MARTIN MARIETTA ALREADY HAD MADE A DEAL WILL ALSO MAKE LIFE TOUGHER FOR ACQUISITIONMINDED DEFENSE CONTRACTORS SUCH AS NEW YORKBASED LORAL CORP ANALYSTS SAID A MARTIN MARIETTA SPOKESMAN PHILLIP GIARAMITA DISAGREED WITH THE DEFENSEINDUSTRY ANALYSTS WHO THINK THE GROUND RULES HAVE CHANGED FOR GOOD YOU MIGHT SEE A SHORTTERM SCENARIO WHERE THERE WOULD BE A REPEAT OF NORTHROP'S HOSTILE BID MR GIARAMITA SAID BUT BIDDING WARS USUALLY LEAD TO OVERPAYING WHICH ISN'T SUSTAINABLE OVER A LONG PERIOD OF TIME BECAUSE THE INDUSTRY REALLY DOES HAVE TO REDUCE COSTS MR GIARAMITA SAID THAT AS DISAPPOINTING AS LOSING GRUMMAN IS WE KNOW THERE ARE GOING TO BE OTHER HIGHQUALITY COMPANIES AVAILABLE WE WILL BE IN THE MARKET LOOKING FOR COMPANIES THAT PROVIDE SYNERGIES AT A REASONABLE PRICE MARTIN MARIETTA WILL BE LOOKING FOR COMPANIES THAT ADD STRENGTH TO ITS CORE BUSINESSES IN THE AREAS OF SPACE DEFENSE ELECTRONICS INFORMATION SYSTEMS OR SERVICES HE ADDED YESTERDAY MARTIN MARIETTA INVESTORS APPARENTLY DISAPPOINTED BY THE AUCTION'S OUTCOME PUSHED DOWN THE COMPANY'S SHARES 1375 TO 42625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ANALYSTS SAID IT WAS DIFFICULT TO SAY WHERE MARTIN MARIETTA WOULD TURN NEXT CS FIRST BOSTON'S PETER ASERITIS SAID THE COMPANY MIGHT BE ATTRACTED TO THE AEROJET DIVISION OF GENCORP INC FAIRLAWN OHIO THE DEFENSE ELECTRONICS BUSINESSES OF ITT CORP NEW YORK OR HARRIS CORP MELBOURNE FLA OR THE MISSILE DIVISION OF TEXAS INSTRUMENTS INC DALLAS SEVERAL ANALYSTS MENTIONED THAT ESYSTEMS INC A DALLAS DEFENSEELECTRONICS CONCERN WOULD MAKE A GOOD FIT WITH MARTIN MARIETTA'S OPERATIONS ANOTHER POSSIBILITY THEY MENTIONED IS PARTS OF WATKINSJOHNSON CO A PALO ALTO CALIF CONCERN IF NORTHROP DECIDES TO SELL GRUMMAN'S INFORMATION SYSTEMS OR SERVICES BUSINESSES MARTIN MARIETTA CONCEIVABLY COULD BE A BUYER FOR THOSE PIECES ONE INDUSTRY OFFICIAL SAID SOME ANALYSTS HAVE SPECULATED IN RECENT WEEKS THAT MARTIN MARIETTA MIGHT MAKE A PASS AT NORTHROP IF THE LOS ANGELES DEFENSE CONTRACTOR WON THE CONTEST FOR GRUMMAN YESTERDAY HOWEVER MOST ANALYSTS REJECTED THAT SCENARIO MR AUGUSTINE A FORMER UNDERSECRETARY OF THE ARMY WOULDN'T JEOPARDIZE HIS POLITICAL AND CONGRESSIONAL TIES BY LAUNCHING A HOSTILE DEFENSEINDUSTRY TAKEOVER THEY SAID IN ADDITION THEY DOUBTED THAT MARTIN MARIETTA WOULD WANT TO ACQUIRE NORTHROP'S SHRINKING B2 BOMBER BUSINESS OR THE COMPANY'S DEBT AS IT COMMISERATES OVER LOSING GRUMMAN MARTIN MARIETTA STILL CAN POINT TO A TIDY CONSOLATION PRIZE IT HAS ALREADY RECEIVED 50 MILLION FROM GRUMMAN THE AMOUNT THE NEW YORK DEFENSE CONTRACTOR AGREED TO PAY AS A BREAKUP FEE IN THE EVENT THE INITIAL MARTIN MARIETTA DEAL COLLAPSED MARTIN MARIETTA SAID IT COULD RECEIVE AS MUCH AS AN ADDITIONAL 88 MILLION FROM GRUMMAN IN REIMBURSEMENT FOR EXPENSES 9404050101 940405 IN THE LAB THIS ROBOT DRIVES AND MAY SAVE LIVES BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL AN ARMY AMBULANCE LUMBERS DOWN A SNOWSLICK PITTSBURGH ROAD ON A WINTER EVENING YOU CAN BARELY SEE THE WHITE LANE MARKINGS UNDER THE GRIMY SLUSH ALVINN'S NEVER DRIVEN IN SUCH CONDITIONS BEFORE MUTTERS DEAN POMERLEAU AN ASSISTANT PROFESSOR AT CARNEGIE MELLON UNIVERSITY PROF POMERLEAU'S NERVOUSNESS IS UNDERSTANDABLE ALVINN AFTER ALL IS NOTHING BUT 10000 LINES OF COMPUTER CODE HOUSED IN A TRUCK THE SELFDRIVING TRUCK IS A PRODUCT OF CARNEGIE MELLON UNIVERSITY'S ROBOTICS INSTITUTE HERE SCIENTISTS HAVE BUILT ROBOTS THAT CLEANED UP THE THREE MILE ISLAND NUCLEAR GENERATING PLANT AND ONE THAT WILL EXPLORE THE HELLISH INTERIORS OF AN ALASKAN VOLCANO NOW PROF POMERLEAU AND HIS COLLEAGUE CHARLES THORPE ARE BUILDING SELFDRIVING VEHICLES TO TACKLE THE TASK OF SAVING LIVES ON AMERICA'S HIGHWAYS SELFDRIVING VEHICLES HAVE LONG ENTICED GOVERNMENT AND BUSINESSES AS A WAY TO CLEAN TOXICWASTE SITES EXPLORE PLANETS OR RECONNOITER A BATTLEFIELD WITHOUT ENDANGERING HUMAN LIVES THE ROBOTICS INSTITUTE'S WORK HAS MOSTLY BEEN FUNDED BY THE DEFENSE DEPARTMENT BUT MORE RECENTLY A 23 MILLION DEPARTMENT OF TRANSPORTATION GRANT SPURRED PROFS THORPE AND POMERLEAU TO ADAPT THEIR TECHNOLOGY WE WANT TO INVENT A SYSTEM THAT WILL WARN A DRIVER OR TAKE OVER THE STEERING PROCESS OF A VEHICLE AND PUT IT BACK ON THE ROAD WHEN THE DRIVER HAS TEMPORARILY LOST CONTROL SAYS PROF POMERLEAU THE CARNEGIE TEAM'S SYSTEM WOULD IDEALLY COMPARE A PICTURE OF WHERE A CAR IS GOING TO WHERE IT SHOULD BE GOING AND THEN TRIGGER AN ALARM THAT ALERTS THE DOZING DRIVER TO REGAIN CONTROL PROF POMERLEAU SAYS THAT A THIRD OF ALL HIGHWAY FATALITIES OCCUR BECAUSE A SINGLE CAR VEERS OFF THE ROAD OFTEN DUE TO THE DRIVER'S FATIGUE LACK OF ATTENTION OR INTOXICATION THE THREE MILLION SUCH ACCIDENTS THAT OCCUR EACH YEAR IN THE US COST ABOUT 100 BILLION IN HEALTH AND PROPERTYRELATED DAMAGES HE SAYS MOREOVER THE DEPARTMENT OF TRANSPORTATION HAS AMBITIOUS LONGRANGE PLANS TO ADD A SEPARATE LANE ON CERTAIN HIGHWAYS ON WHICH ONLY SELFDRIVEN CARS WILL BE PERMITTED THE ALVINN CONCEPT IS OBVIOUSLY AN IMPORTANT ELEMENT OF THE PLAN SAYS MILT HEYWOOD A TECHNICAL PROGRAM ADVISER AT THE DEPARTMENT ALVINN OR AUTONOMOUS LAND VEHICLE IN A NEURAL NETWORK IS THE ELECTRONIC BRAIN BEHIND THE CARNEGIE TRUCK THAT DRIVES ITSELF BY MIMICKING HUMAN FACULTIES ALVINN'S EYES ARE A LASER RANGEFINDER THAT MEASURES DISTANCE AND A TV CAMERA THAT TAKES PICTURES OF THE ROAD AHEAD LIKE A HUMAN DRIVER ALVINN LEARNS BY EXAMPLE BEFORE THE NEURAL NETWORK CAN TAKE OVER A GRADUATE STUDENT DRIVES THE AMBULANCE ALVINN SIMPLY WATCHES IT NOTICES HOW THE STUDENT CENTERS THE VEHICLE IN THE MIDDLE OF THE LANE EQUIDISTANT BETWEEN THE LANE DIVIDERS THESE AND OTHER EXAMPLES OF THE PERSON'S DRIVING BEHAVIOR ARE STORED IN MEMORY BANKS IN ABOUT FIVE MINUTES ALVINN IS READY FOR ITS TEST ALVINN INSTRUCTS AN ONBOARD COMPUTER NAMED LARRY TO CONVERT THE IMAGES INTO A DIGITAL PICTURE ANOTHER COMPUTER CURLY EXTRACTS SPECIFIC FEATURES FROM THE IMAGES AND MAKES A JUDGMENT ABOUT WHICH WAY TO STEER THESE INSTRUCTIONS ARE THEN RELAYED BY THE THIRD COMPUTER MOE TO THE STEERING WHEEL WHICH GUIDES THE TRUCK AT THE CORE OF ALVINN'S REMARKABLE ABILITY IS A NEURAL NETWORK A TECHNOLOGY SOME EXPECT WILL TRANSFORM THE WORLD OF COMPUTING IN A TRADITIONAL SOFTWARE PROGRAM DATA NEED TO BE PRECISELY DEFINED BEFORE BEING PROCESSED NEURAL NETWORKS HOWEVER ARE CAPABLE OF HANDLING MUCH FUZZIER CONCEPTS LIKE SPOKEN WORDS OR VISUAL IMAGES WHEN A PERSON FIRST HEARS THE WORD CARNEGIE FOR INSTANCE THE BRAIN RECORDS THE SOUND AS A UNIQUE ELECTRICAL PATTERN AMONG MILLIONS OF NERVE CELLS OR NEURONS WHEN CARNEGIE IS LATER SPOKEN IN A THICKER ACCENT THE BRAIN STILL RECOGNIZES IT BECAUSE THE SOUND APPROXIMATES THE ORIGINAL PATTERN OF THE NEURONS OVER TIME THE BRAIN LEARNS TO RECOGNIZE THE SOUND EVEN WHEN THE CLARITY SHARPLY DETERIORATES NEURAL NETWORKS HAVE BECOME POPULAR TOOLS FOR VOICE AND HANDWRITING RECOGNITION SYSTEMS ALVINN HANDLES VISUAL IMAGES IN A SIMILAR WAY ON THE RECENT TEST DRIVE DIRTY SNOW HAS COVERED ONE OF ITS USUAL DRIVING MARKERS THE WHITE LINES ON THE ROAD BUT THE NEURAL NETWORK IS SMART ENOUGH TO LOOK AT THE SMUDGED VISIBLE PORTIONS AND RELATE THEM TO THE FEATURES OF A CLEAR ROAD STORED IN ITS MEMORY BANKS ALL BY ITSELF ALVINN HAS DRIVEN 90 MILES ON A HIGHWAY OUTSIDE PITTSBURGH PROF POMERLEAU NOTES PROUDLY BUT TEACHING A VEHICLE TO DRIVE ITSELF IS NOT ENOUGH TO DEVELOP A WARNING SYSTEM HOW DO YOU ACCOUNT FOR DIFFERENT REACTION TIMES AMONG DRIVERS WOULD A WARNING SYSTEM THAT SHAKES THE STEERING WHEEL BE PREFERABLE TO A SOUND ALARM RESEARCH SUGGESTS SO BECAUSE THE SOMNOLENT DRIVER MIGHT MISTAKENLY REACH FOR A NONEXISTENT SNOOZE BUTTON ON AN ALARM CLOCK SAYS PROF THORPE THE TWO SCIENTISTS PLAN TO DELIVER BLUEPRINTS FOR THEIR CRASH AVOIDANCE TECHNOLOGY TO THE DEPARTMENT OF TRANSPORTATION WITHIN TWO YEARS ONCE WE KNOW THE SPECIFICATIONS WE CAN FEED THE ENTIRE NEURAL NETWORK INTO A SINGLE MICROCHIP AND DELIVER IT BY THE END OF 1996 PROF THORPE SAID HE EXPECTS A MASSPRODUCED DEVICE COMBINED WITH A MINIATURE TV CAMERA AND LASER RANGE FINDER WOULD BE INSTALLED IN A CAR'S COMPUTER AND EVENTUALLY SOLD AS A 1000 OPTION LIKE ANTILOCK BRAKES A TECHNOLOGY LIKE ALVINN IS ABSOLUTELY NOT A BLUESKY CONCEPT A SPOKESMAN FOR GENERAL MOTORS CORP SAID WE WON'T TURN OUR BACKS ON THESE PRODUCTS BUT THE BIGGEST HURDLE IS WHETHER WE CAN OFFER THE TECHNOLOGY TO CONSUMERS AT AN ACCEPTABLE PRICE AN ALVINNTYPE SYSTEM IS SOMETHING THE INDUSTRY HAS DREAMED ABOUT FOR SOME TIME NOW SAID JOHN CASESA AN AUTO ANALYST AT WERTHEIM SCHRODER HE SAYS THAT CAR OWNERS TODAY ARE FAR MORE TUNED TO SAFETY FEATURES THAN THEY WERE FIVE YEARS AGO AND MARVIN MINSKY ONE OF THE FOUNDING FATHERS OF ARTIFICIAL INTELLIGENCE AND THE CREATOR OF ONE OF THE FIRST NEURAL NETWORKS IN THE EARLY 1950S CALLS ALVINN A NATURAL IDEA BUT HE WORRIES THAT AN ALVINNINSPIRED DEVICE MAY MISREAD CERTAIN ROAD SITUATIONS AND ANGER DRIVERS BY GOING OFF AT THE WRONG TIMES NEURAL NETWORKS ARE VERY GOOD WHEN IT COMES TO RECOGNIZING PATTERNS HE SAID BUT NO ONE'S DEVELOPED ONE WITH COMMON SENSE YET 9404050100 940405 WAXMAN EXTENDS OFFER ON NOTES BEDFORD HEIGHTS OHIO WAXMAN INDUSTRIES INC SAID IT EXTENDED UNTIL APRIL 8 ITS PURCHASE OFFER FOR ALL BUT NOT LESS THAN 66 MILLION OF ITS 1375 SENIOR SUBORDINATED NOTES DUE JUNE 1 1999 THE SUPPLIER TO THE HOME REPAIR AND REMODELING MARKET SAID THE PREVIOUS EXPIRATION DATE WAS LAST FRIDAY THE COMPANY SAID THAT AS OF THE CLOSE OF BUSINESS THAT DAY THE MINIMUM TENDER CONDITION HAD BEEN SATISFIED WITH 874 MILLION OF THE NOTES ALREADY TENDERED THE EXTENSION WAS FILED TO BETTER COORDINATE THE COMPLETION OF THE TENDER OFFER WITH THE CLOSING OF THE COMPANY'S DEBT REFINANCING WAXMAN INDUSTRIES SAID 9404050099 940405 LOTUS'S SCREENCAM FOR WINDOWS CAMBRIDGE MASS LOTUS DEVELOPMENT CORP SAID IT WILL START SHIPPING SCREENCAM FOR WINDOWS A MULTIMEDIA SCREEN AND SOUND PROGRAM WITH A SUGGESTED PRICE OF 79 SCREENCAM WHICH CAPTURES AND SAVES SCREEN ACTIVITY AND CAN REPLAY VIDEO MOVIES IS BEING ADDED TO THE MULTIMEDIA VERSION OF 123 FOR WINDOWS LOTUS SAID IT ALSO IS TRYING TO GET OTHER SOFTWARE MAKERS TO INCORPORATE SCREENCAM INTO PRODUCTS 9404050098 940405 FOREIGN EXCHANGE DOLLAR WINDS UP MIXED AS IT WITHSTANDS POUNDING GIVEN STOCK AND BOND MARKETS BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR WAS MIXED YESTERDAY STUBBORNLY RESISTING THE PUMMELING THAT BEFELL US STOCK AND BOND MARKETS ON LINGERING FEARS THAT HIGH US EMPLOYMENT WOULD BOOST INFLATION INDEED SOME TRADERS SAID THE SAME INFLATIONARY FACTORS THAT SEVERELY DEPRESSED OTHER FINANCIAL MARKETS MAY ACTUALLY HAVE CREATED A BULLISH ENVIRONMENT FOR THE DOLLAR LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16973 MARKS UP SLIGHTLY FROM 16967 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10320 YEN DOWN FROM 10363 YEN STERLING WAS TRADING AT 14662 DOWN FROM 14735 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10315 YEN AND AT 16958 MARKS THE DOLLAR GAINED AGAINST EUROPEAN CURRENCIES BUILDING ON THE UPWARD MOMENTUM TRIGGERED BY FRIDAY'S REPORT THAT US NONFARM PAYROLLS IN MARCH HAD CLIMBED BY 456000 OR ABOUT DOUBLE MARKET EXPECTATIONS THE DATA SPARKED FEARS OF INFLATIONARY PRESSURES TO COME PROMPTING A VICIOUS CYCLE OF SELLOFFS IN THE US BOND AND STOCK MARKETS YESTERDAY BUT WHILE IN RECENT WEEKS SELLOFFS IN DOLLARDENOMINATED ASSETS MEANT DOLLAR WEAKNESS TRADERS NOTED THAT THE TUNE MAY HAVE ABRUPTLY CHANGED FOR NOW PROSPECTS OF INFLATION MAY ACTUALLY BE BULLISH FOR THE DOLLAR BECAUSE THE US FEDERAL RESERVE IS NOW UNDER INCREASED PRESSURE TO ACCELERATE THE PACE OF INTERESTRATE INCREASES SAID CARL AMENDOLA VICE PRESIDENT OF BAYERISCHE HYPOTHEKENUND WECHSELBANK AG IN NEW YORK BUT HE CAUTIONED THAT YESTERDAY'S DOLLAR MOVEMENTS COULD HAVE BEEN MUTED BY THE THINNESS OF THE MARKET WITH EUROPEAN TRADING CLOSED DOWN FOR THE LONG EASTER HOLIDAY WEEKEND NEVERTHELESS MR AMENDOLA SAYS THE FOREIGNEXCHANGE MARKET MAY BE RETURNING TO ITS TRADITIONAL FOCUS OF INVESTING IN CURRENCIES WHERE HIGHER INTEREST RATES ARE TO BE FOUND BUT OTHER TRADERS QUESTIONED WHETHER THE NONFARM PAYROLL NUMBER AND WITH IT DOLLAR BULLISHNESS WOULD HOLD UP WHEN REVISED FIGURES ARE RELEASED IN ONE MONTH THE REVISION ON NONFARM PAYROLLS HAS ALWAYS BEEN EXTREME SAID SIOBHAN LACKEY A TRADER AT BANK JULIUS BAER & CO IN NEW YORK THIS WAS REALLY A DRAMATIC NUMBER BUT THE QUESTION IS WHETHER IT WILL HAVE BEEN REAL IN ONE MONTH'S TIME ALTHOUGH THE FOREIGNEXCHANGE MARKET'S FOCUS ON INTEREST RATES ALLOWED A BRIEF TEST OF 17000 MARK RESISTANCE TO AN INTRADAY HIGH OF 17025 MARKS THE MARKET FAILED TO SUSTAIN THAT MOVE MS LACKEY SAID THE EUROPEAN MARKET WAS PARTLY TO BLAME FOR THE DOLLAR'S LIMITED MOVE UPWARD BECAUSE IT HAD GONE HOME WITH SELLORDERS AT AROUND THAT LEVEL SHE ADDED THERE IS A STRONG PERCEPTION THAT THE US CURRENCY IS FAIRLY VALUED AT AROUND CURRENT LEVELS MS LACKEY SAID ADDING THAT ANOTHER FACTOR WAS THAT THERE IS LITTLE INTEREST ON THE PART OF THE US GOVERNMENT TO SEE THE DOLLAR ZOOM UP MS LACKEY ALSO SAID THAT TOO STRONG A DOLLAR WOULD DIMINISH THE COMPETITIVENESS OF US GOODS AND SERVICES ABROAD SOMETHING THE CLINTON ADMINSTRATION WOULD OPPOSE I CAN'T JUMP ON THE DOLLARHIGHER BANDWAGON SHE SAID I JUST DON'T FEEL THAT COMFORTABLE WITH A STRONG DOLLAR THE DOLLAR SOFTENED AGAINST THE YEN ON QUESTIONS OVER WHETHER THE US AND JAPAN WILL BE ABLE TO REACH AN ACCORD IN THEIR TRADE DISPUTE A MOVE THAT WAS EXACERBATED BY WEAKNESS IN THE US FINANCIAL MARKETS SAID DENNIS PETTIT FOREIGNEXCHANGE MANAGER AT THE LONGTERM CREDIT BANK OF JAPAN IN NEW YORK 9404050097 940405 INTERNATIONAL HONG KONG TV PRODUCER CHUA CASTS HIS BEAM INTO CHINA'S SATELLITE MARKET BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG ROBERT CHUA IN RECENT YEARS A PRODUCER OF TELEVISION COMMERCIALS CORPORATE VIDEOS AND ADULT ENTERTAINMENT SEES HIMSELF SOON JOINING TED TURNER RUPERT MURDOCH AND SIR RUN RUN SHAW AS A TVINDUSTRY TITAN THAT MAY NOT BE AS FARFETCHED AS IT SOUNDS THROUGH MUCH OF THE 1960S AND '70S MR CHUA WAS A WILDLY SUCCESSFUL PRODUCER FOR HONG KONG TELEVISION MORE IMPORTANT HE'S NOW SETTING HIMSELF UP AS A PLAYER IN CHINA'S NASCENT SATELLITETV MARKET POTENTIALLY THE WORLD'S LARGEST ALREADY HE HAS BOOKED SATELLITE SPACE AND SECURED THE HELP OF HONGKONG TELECOMMUNICATIONS LTD FOR BEAMING HIS PLANNED MANDARINLANGUAGE FAMILY ENTERTAINMENT CHANNEL TO THE MAINLAND AND HE SAYS HE'S HAVING NO TROUBLE LINING UP THE 100 MILLION HE NEEDS TO LAUNCH THE CHANNEL WITHIN A YEAR ANALYSTS AGREE THAT MR CHUA MAY REPRESENT A CREDIBLE CHALLENGE OR PARTNER FOR SATELLITETV GOLIATHS IN CHINA AN UNDERDEVELOPED MARKET WHERE CONNECTIONS CAN COUNT FOR AS MUCH AS EXPERIENCE THERE'S NO REASON TO BELIEVE HE DOESN'T HAVE THE WHEREWITHAL TO DO THIS SAYS TOM HARTJE AN INDUSTRY CONSULTANT EVEN IF MR CHUA DOESN'T MAKE IT ON HIS OWN HOWEVER HE MAY STILL END UP A PLAYER THE WORLD'S PREMIER MEDIA COMPANIES ARE BUSY SHOPPING FOR LOCAL PARTNERS WITH CHINESELANGUAGE PRODUCTION EXPERIENCE AMID A SMALL POOL OF CANDIDATES CURRENTLY ONLY CHINA'S STATEOWNED CCTV AND MR MURDOCH'S HONG KONGBASED STAR TV BROADCAST MANDARIN PROGRAMMING BY SATELLITE TO CHINA THERE MAY WELL BE ROOM FOR MORE CCTV'S PROGRAMMING IS STAID AT BEST AND STAR HAS HAD TO CONTEND WITH BEIJING'S EFFORTS TO RESTRICT THE REACH OF FOREIGN BROADCASTERS INCLUDING THE REGULATION OF TELEVISION RECEPTION BY SATELLITE DISHES MR CHUA HOPES HE WILL BE TREATED MORE WARMLY BY TAILORING HIS PROGRAMS SPECIFICALLY FOR CHINA I CONSIDER MY SIGNAL A FRIENDLY CHANNEL MR CHUA SAYS IN AN INTERVIEW WEARING HIS SIGNATURE '60SSTYLE BLACKFRAME GLASSES YEARS OF SELLING PROGRAMMING TO CHINA HE ADDS HAS GIVEN HIM A SENSITIVITY TO WHAT CENSORS IN BEIJING DISLIKE THERE WON'T BE ANY SEX OR VIOLENCE ON THE CHANNEL HE VOWS WHICH IS SOMETHING OF A RETREAT FROM HIS RECENT UNDERTAKINGS NOR WILL THERE BE ANY NEWS WHICH IN CHINA CAN BE THE MOST SENSITIVE PROGRAMMING OF ALL STILL MR CHUA'S WINDOW OF OPPORTUNITY WILL SOON NARROW HONG KONGBASED TVB INTERNATIONAL LTD HOPES TO BEAM TO CHINA ITS MANDARIN SATELLITE CHANNEL THUS FAR RESERVED FOR TAIWAN TVB INTERNATIONAL OWNED BY SIR RUN RUN'S TELEVISION BROADCASTS LTD WHERE MR CHUA WORKED FROM 1967 TO 1973 HOPES TO ADD MORE MANDARIN CHANNELS LATER THIS MONTH STAR WILL REPLACE ITS CHANNEL DEVOTED TO BRITISH BROADCASTING CORP'S BBC WORLD SERVICE WITH A MANDARIN MOVIE CHANNEL IN ADDITION CIM LTD PUBLISHER OF HONG KONG'S MING PAO NEWSPAPER PLANS TO PROVIDE NEWS AND INFORMATION ON AT LEAST TWO MANDARINLANGUAGE SATELLITE CHANNELS BY THE END OF THE YEAR TURNER BROADCASTING SYSTEM INC ALSO WANTS TO START BROADCASTING TWO CHANNELS TO CHINA LATER THIS YEAR INCLUDING SOME PROGRAMMING IN MANDARIN OTHER US MEDIA COMPANIES ARE LINING UP TO BROADCAST TO CHINA TOO WHETHER THE CHINA MARKET WILL ACCEPT OR CAN SUPPORT SO MANY ENTRANTS REMAINS TO BE SEEN LAST WEEK TURNER BROADCASTING'S MR TURNER TOLD A CONFERENCE OF SATELLITE TV EXECUTIVES IN HONG KONG WE COULD ALL LOSE OUR BUNS OUT HERE EVEN THE OPTIMISTIC MR CHUA SAYS THERE WILL PROBABLY BE A SHAKEOUT OF SATELLITE BROADCASTERS AFTER A YEAR OR TWO BECAUSE THERE AREN'T ENOUGH ADVERTISING DOLLARS TO GO AROUND STAR FOR EXAMPLE HAS YET TO MAKE A PROFIT ON REVENUE IT COAXED FROM REGIONAL ADVERTISERS STILL MR CHUA BELIEVES HIS CHINA ENTERTAINMENT TELEVISION BROADCAST LTD THE COMPANY HE FORMED TO BROADCAST HIS MANDARIN CHANNEL WILL HAVE AN EDGE OVER THE OTHERS BOTH IN PROGRAMMING AND ALLIANCES WITH TELEVISION STATIONS IN CHINA MORE THAN 30 OF CETV'S MANDARIN PROGRAMMING WILL BE PRODUCED IN HONG KONG MUCH OF IT LIVE AN ADDITIONAL 20 WILL BE ACQUIRED FROM OTHER MANDARINPROGRAMMING SOURCES MR CHUA SAYS LESS THAN HALF OF CETV'S PROGRAMMING WILL BE DUBBED FROM ENGLISH OR OTHER LANGUAGES MUCH OF THAT MATERIAL WILL CONSIST OF DOCUMENTARIES AND OTHER PROGRAMS EASILY DUBBED WITHOUT DETRACTING FROM THEIR APPEAL THE SECRET IS GOOD PROGRAMMING MR CHUA SAYS WHILE HIS COMPETITORS AGREE THEY QUESTION WHETHER MR CHUA HAS THE STAYING POWER TO PRODUCE HOURS OF DAILY PROGRAMMING 365 DAYS A YEAR TV HOURS BURN LIKE ROCKET FUEL SAYS JOSEPH SPITZER A CONSULTANT FOR TVB INTERNATIONAL MR SPITZER ADDS THAT THE STORE OF TALENT AVAILABLE IN HONG KONG IS LIMITED AND ALREADY WELLMINED AND TVB INTERNATIONAL'S GENERAL MANAGER SK FUNG QUESTIONS WHETHER THE SHOWS MR CHUA ACQUIRES WILL DISTINGUISH CETV FROM TVB STAR AND OTHERS THE SINGAPOREBORN MR CHUA NOW 47 YEARS OLD ROSE TO EARLY STARDOM IN HONG KONG'S TELEVISION INDUSTRY BY PRODUCING TVB'S ENJOY YOURSELF TONIGHT NOW THE LONGESTRUNNING PROGRAM ON HONG KONG TELEVISION AFTER NEARLY 27 YEARS HE PLANS TO RECREATE THE LIVE VARIETY SHOW IN MANDARIN FOR HIS SATELLITE CHANNEL HE HAS SIGNED UP LO HOIPANG AND IS NEGOTIATING A CONTRACT WITH LYDIA SHUM TWO OF HONG KONG'S MOST POPULAR STARS BOTH OF THEM MANDARIN SPEAKERS TO HOST THE SHOW ALTHOUGH HIS PLANS FOR PROGRAMMING DON'T STOP THERE HE SWEARS REPORTERS AND POTENTIAL INVESTORS TO SECRECY WHEN DISCUSSING HIS IDEAS FOR FEAR OF TIPPING OFF THE COMPETITION 9404050096 940405 BUSINESS BRIEF ITT CORP SUBSIDIARY TO BUY 50 STAKE IN HOTELS IN ORLANDO FLA ITT CORP SAID ITS ITT SHERATON CORP SUBSIDIARY REACHED A PRELIMINARY AGREEMENT TO BUY A 50 INTEREST IN FOUR HOTELS TO BE BUILT AT THE UNIVERSAL STUDIOS FLORIDA THEME PARK IN ORLANDO TERMS OF THE AGREEMENT WEREN'T DISCLOSED ITT SAID SHERATON ALSO WOULD OPERATE THE HOTELS PLANNED AS PART OF A RECENTLY ANNOUNCED EXPANSION OF UNIVERSAL STUDIOS FLORIDA'S EXISTING THEME PARK THE FOUR HOTELS TWO OF WHICH WILL BE COMPLETED IN 1997 WILL HAVE MORE THAN 4000 ROOMS UNIVERSAL STUDIOS FLORIDA A PARTNERSHIP BETWEEN MCA INC AND THE UNITED KINGDOM'S RANK ORGANISATION PLC WILL OWN THE OTHER 50 OF THE HOTELS MCA AN ENTERTAINMENT COMPANY IS A UNIT OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO ITT BASED IN NEW YORK ALSO HAS INTERESTS IN FINANCIAL AND BUSINESS SERVICES AND MANUFACTURED PRODUCTS 9404050095 940405 INTERNATIONAL INVESTIGATOR LINKS SEVEN PEOPLE TO KILLING OF MEXICAN POLITICIAN BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY AT LEAST SEVEN PEOPLE TOOK PART IN A CONSPIRACY TO ASSASSINATE MEXICAN RULINGPARTY PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO LAST MONTH THE GOVERNMENTAPPOINTED SPECIAL INVESTIGATOR SAID SPECIAL INVESTIGATOR MIGUEL MONTES A FORMER SUPREME COURT JUSTICE SAID IN A STATEMENT THAT FIVE OF THE SEVEN PEOPLE ARE UNDER ARREST AND THAT POLICE ARE SEARCHING FOR THE OTHERS AT LEAST TWO OF THE MEN ARRESTED IN CONNECTION WITH THE MARCH 23 ASSASSINATION REPORTEDLY WERE FORMER MEMBERS OF THE STATE JUDICIAL POLICE IN MEXICO'S BAJA CALIFORNIA THE LAW ENFORCEMENT AGENCY HAS BEEN WIDELY ACCUSED OF CORRUPTION AND OF HAVING TIES TO THE GROWING ILLICIT DRUG TRADE OF BAJA CALIFORNIA FOLLOWING THE SHOOTING TWO TRUCKLOADS OF JUDICIAL POLICE WERE SEEN FOLLOWING THE VAN CARRYING MR COLOSIO'S BODY AWAY FROM THE TIJUANA HILLSIDE SLUM WHERE THE ASSASSINATION TOOK PLACE THEIR ROLE HAS BEEN UNEXPLAINED IT HASN'T BEEN PUBLICLY DETERMINED IF THEY WERE AT THE SCENE AT THE TIME OF THE SHOOTING OR ARRIVED THERE SHORTLY AFTERWARD AND A FEDERAL ATTORNEY GENERAL'S SPOKESMAN REFUSED TO COMMENT THE MEXICAN GOVERNMENT INITIALLY HAD INSISTED THAT A LONE GUNMAN MARIO ABURTO MARTINEZ HAD KILLED MR COLOSIO THEN LAST WEEK AUTHORITIES ARRESTED A SECOND MAN TRANQUILINO SANCHEZ VIDEOTAPE APPEARED TO SHOW MR SANCHEZ CLEARING A PATH FOR THE GUNMAN TO GET CLOSE ENOUGH TO MR COLOSIO TO PLACE A HANDGUN NEXT TO THE CANDIDATE'S HEAD NOW THAT THE INVESTIGATORS HAVE ACKNOWLEDGED A LARGER CONSPIRACY THEY ARE PROMPTING WIDERANGING SPECULATION IN MEXICO CITY ABOUT WHO COULD HAVE WORKED TO PRODUCE SUCH A SECURITY BREAKDOWN THE SPECULATION BREAKS DOWN ROUGHLY INTO THREE SCENARIOS THE BELIEF IS WIDESPREAD THAT HARDLINERS IN THE RULING PARTY KNOWN AS THE PRI WERE BEHIND THE ASSASSINATION THIS THEORY HAS IT THAT HARDLINERS ARE FED UP WITH THE REFORMS OF PRESIDENT CARLOS SALINAS DE GORTARI IN MUCH THE SAME WAY MEMBERS OF THE COMMUNIST PARTY POLITBURO WERE FED UP WITH MIKHAIL GORBACHEV IN THE LAST DAYS OF THE SOVIET UNION MR COLOSIO WAS SEEN AS SOMEONE WHO WOULD HAVE ONLY ACCELERATED THOSE REFORMS OTHERS GUESS THAT THE ASSASSINATION COULD BE LINKED TO THE RISING DRUGRELATED VIOLENCE IN MEXICO MR COLOSIO CAME FROM THE BORDER STATE OF SONORA WHICH LIKE ALL MEXICAN BORDER STATES HAD BECOME A TRANSIT POINT FOR COCAINE HEROIN AND MARIJUANA BOUND FOR THE US MEXICAN INVESTIGATORS SAY THEY ARE ALSO PROBING THE LINKS BETWEEN MR ABURTO THE CONFESSED ASSASSIN AND CERTAIN RADICAL GROUPS IN THE LOS ANGELES AREA THE US FEDERAL BUREAU OF INVESTIGATION IS COOPERATING IN THE PROBE BUT THE MEXICAN ATTORNEY GENERAL'S OFFICE HAS PROVIDED THE PUBLIC WITH LITTLE EVIDENCE OF A LINKSAVE FOR THE FREQUENT SOJOURNS BY MR ABURTO TO VISIT FAMILY AND WORK IN THE SAN PEDRO AREA OF SOUTHERN CALIFORNIA MEANWHILE IN LOS ANGELES SEVERAL LATINO LEADERS ARE DECRYING THE WITCHHUNT INTO CONNECTIONS BETWEEN MR ABURTO AND MEXICAN IMMIGRANT GROUPS OF CALIFORNIA FOR THEM TO ALL OF A SUDDEN TRY TO PIN A SORT OF TERRORIST MARXISTLENINIST SOCIALIST LABEL ON MARIO ABURTO MARTINEZ IS JUST BLOWING IN THE WIND SAID XAVIER HERMOSILLO A COMMUNITY ACTIVIST AND RADIO COMMENTATOR IN LOS ANGELES INVESTIGATORS ON BOTH SIDES OF THE BORDER SAID THEY ARE PURSUING ALL LEADS A WOMAN MR ABURTO WAS COURTING 16YEAROLD GRACIELA GONZALEZ HAS SAID MR ABURTO HAD TIES WITH A POLITICAL GROUP AND THAT HE WAS FED UP THAT THE PRI ALWAYS WINS SHE ALSO QUOTED HIM AS SAYING HE SPENT FOUR MONTHS IN CHIAPAS LATE LAST YEAR BEFORE THE REBELLION ERUPTED THERE JAN 1 MISS GONZALEZ SAID MR ABURTO NEVER TOLD HER THE NAME OF HIS GROUP NOR HOW BIG IT IS THOUGH SHE KNEW PARTIAL NAMES OF SOME OF HIS CONTACTS IN TIJUANA THE SPECIAL INVESTIGATOR'S OFFICE SAID IT DECIDED THAT ADDITIONAL PEOPLE WERE INVOLVED AFTER EXAMINING PHOTOGRAPHS AND VIDEOTAPE OF WHAT ENSUED AFTER MR COLOSIO FINISHED HIS SPEECH IN TIJUANA AND WADED INTO THE CROWD TO SHAKE HANDS THE INVESTIGATORS SAID THAT ONE OF THE NEW SUSPECTS IN THE CASE APPEARED TO TRY TO BUMP ONE OF THE FEW SECURITY MEN SURROUNDING MR COLOSIO IN AN ATTEMPT TO DISTRACT A GUARD ANOTHER OF THE MEN APPARENTLY THREW HIMSELF DOWN IN FRONT OF THE CANDIDATE TRYING TO HOLD HIM UP SO THAT MR ABURTO COULD GET CLOSE ENOUGH TO KILL HIM MR MONTES'S OFFICE COULDN'T BE REACH FOR A FURTHER COMMENT BEYOND THE OFFICIAL STATEMENT WHICH GAVE NO DETAILS ON THE MOTIVE NO OTHER GOVERNMENT AGENCIES WOULD RESPOND TO QUESTIONS THE IDEA OF A WIDENING CONSPIRACY MAY FRIGHTEN A FEW INVESTORS ALREADY SPOOKED BY A MAYAN UPRISING IN SOUTHERN MEXICO AND THE KIDNAPPING OF ONE OF MEXICO'S RICHEST BANKERS YESTERDAY THE MEXICAN STOCK EXCHANGE PLUNGED 601 BUT MUCH OF THE DIVE WAS DUE TO MARKET READJUSTMENTS STEMMING FROM THE RISE IN US RATES THAT HAVE PARTICULARLY HIT EMERGING MARKETS SAID ANALYSTS POLITICAL UPHEAVAL HAS LARGELY BEEN DISCOUNTED IN THE MARKET SAID RAFAEL BELLO A MORGAN STANLEY ANALYST IN NEW YORK ECONOMIC FACTORS SUCH AS THE BOND MARKET FALLING DRASTICALLY SAID MR BELLO WEIGHS MORE THAN THE FACT THAT THERE WERE SEVEN PEOPLE INVOLVED IN THE COLOSIO ASSASSINATION 9404050094 940405 ITRON WINS BALTIMORE JOB SPOKANE WASH ITRON INC SAID IT WON A 27 MILLION CONTRACT WITH BALTIMORE GAS & ELECTRIC CO TO SUPPLY AUTOMATIC METERREADING EQUIPMENT 9404050093 940405 KEMPER CRITICIZED BY GE CAPITAL IN PROXY LETTER BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL GE CAPITAL CORP SHARPLY CRITICIZED KEMPER CORP'S MANAGEMENT AND BOARD TELLING KEMPER SHAREHOLDERS THAT THEY SHOULD VOTE FOR GE'S RIVAL SLATE OF DIRECTORS RATHER THAN WAIT FOR SOME HIGHLY SPECULATIVE FUTURE VALUE FROM AN UNDERPERFORMING MANAGEMENT IN A PROXY LETTER MAILED TO MORE THAN 20000 KEMPER SHAREHOLDERS LAST NIGHT GE CAPITAL TURNED UP THE HEAT IN ITS TAKEOVER BATTLE BY DIRECTLY CRITICIZING KEMPER'S MANAGEMENT UNTIL NOW GE HAS REFRAINED FROM ATTACKING THE LONG GROVE ILL MONEYMANAGEMENT AND INSURANCE COMPANY LAST MONTH KEMPER REBUFFED AN UNSOLICITED 55ASHARE OR 22 BILLION TAKEOVER OFFER FROM GE CAPITAL THE FINANCIAL UNIT OF GENERAL ELECTRIC CO FAIRFIELD CONN THEN LAUNCHED A PROXY BATTLE TO OUST FOUR KEMPER DIRECTORS AT THE COMPANY'S MAY 11 ANNUAL MEETING AND PRESSURE THE BOARD TO AGREE TO A SALE GE'S RESPONSE CAME AFTER KEMPER CHAIRMAN DAVID MATHIS TOLD GE CHAIRMAN JOHN F WELCH TO ATTEND YOUR OWN BUSINESS CALLING GE A CORPORATE RAIDER THAT IS TRYING TO STEAL KEMPER WITH A LOWBALL PROPOSAL LAST NIGHT A KEMPER SPOKESWOMAN SAID THAT EVEN A FIRST READING SHOWS THE LETTER IS RIDDLED WITH INACCURACIES INCONSISTENCIES AND INNUENDO SHE ADDED THAT WE LOOK FORWARD TO A FULL DISCUSSION OF THE FACTS WITH OUR SHAREHOLDERS IN DUE COURSE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING SHARES OF KEMPER FELL 1375 TO 58 SOME TRADERS CONTENDED THAT GE'S HAND HAS BEEN STRENGTHENED BY THE DECLINE IN THE STOCK MARKET WHICH THEY SAID MAKES IT HARDER FOR KEMPER'S MANAGEMENT TO ARGUE THAT IT CAN IMPROVE THE COMPANY'S STOCK PRICE BETTER THAN GE GREG STEINMETZ CONTRIBUTED TO THIS ARTICLE 9404050092 940405 LETTERS TO THE EDITOR A NICER BIRD YOU COULDN'T FIND THE FEB 16 PAGEONE ARTICLE ON PIGEON TRAPPING IS A PAINFUL REMINDER OF HOW A CIVILIZED SOCIETY DEALS WITH THOSE UNABLE TO PROTECT THEMSELVES FROM OUR CONDUCT MY WIFE AND I ARE FEDERALLY AND STATE LICENSED BIRD REHABILITATORS WITH THE US DEPARTMENT OF THE INTERIOR AND THE ILLINOIS DEPARTMENT OF CONSERVATION WE HAVE WORKED WITH BIRDS FOR 15 YEARS MY WIFE IS AN AVIAN TECHNICIAN IN A BIRD HOSPITAL I WORK FOR THE CHICAGO TRANSIT AUTHORITY AND VOLUNTEER TO DO HUMANE BIRD CONTROL FOR THEM I CONCENTRATE ON THE PEACEFUL SHARING OF THE URBAN HABITAT BETWEEN BIRDS AND HUMANS I ACCEPT NO MONEY FOR THESE ENDEAVORS I DO A GREAT DEAL OF WORK WITH PIGEONS BECAUSE THEY ARE THE NICEST OF ALL THE BIRDS I HAVE EVER WORKED WITH CONTEMPORARY RESEARCH STATES THAT IT IS QUITE DIFFICULT TO GET SICK FROM THE WILD PIGEONS AND A RECENT LETTER FROM THE CENTERS FOR DISEASE CONTROL AND PREVENTION SAID THAT PIGEONS IN THE WILD DO NOT CONSTITUTE A CLEAR AND PRESENT DANGER TO HUMANKIND ONLY IN SUCH CIRCUMSTANCES UNDER WHICH PERSONS ARE IN CLOSE CONTACT WITH PIGEON EXCRETA OR AEROSOLS OF PIGEON EXCRETA IS DISEASE LIKELY TO OCCUR BASICALLY IF DROPPINGS GATHER WITHOUT SUNLIGHT WHICH KILLS BACTERIA FOR A YEAR OR SO AND THEN BECOME AIRBORNE AND INHALED THEY WILL CAUSE THOSE WITH DEPRESSED IMMUNE SYSTEMS TO DEVELOP FLULIKE SYMPTOMS HEALTHY PEOPLE SHOULD NOT BE AFFECTED PIGEONS ARE LIKE DOGS WITH WINGS THEY CRAVE HUMAN ATTENTION LOVE BEING HANDLED WILL TAKE A BATH EVERY DAY AND ARE EASILY TRAINED AND DOMESTICATED THE WALL STREET JOURNAL DID AN ARTICLE ON HOW THEY ARE USED IN HAWAII TO SPOT PEOPLE LOST AT SEA AND HOW MUCH BETTER THEY ARE AT IT THAN HUMANS TRAPPING IS A VICIOUS MEANS OF ELIMINATION SMALLER FEMALES AND BABIES ARE LITERALLY TRAMPLED IN THE TRAPS AND IT IS IMPOSSIBLE FOR THEM TO GET FOOD AND WATER WHEN IT IS RARELY PROVIDED TRAPS ARE SELDOM PROTECTED FROM THE ELEMENTS SO THE BIRDS ROAST IN THE SUN AND DEHYDRATE IN THE COLD WEATHER AND WIND THEY FREEZE TO DEATH ORNITROL A PIGEON BIRTH CONTROL DRUG PROVIDES A 75 REDUCTION IN 18 MONTHS BUT THE EPA WITHOUT PRODUCT COMPLAINTS DECIDED AFTER 20 YEARS TO RETEST IT AND LOW USE COULD NOT SUPPORT THIS COST THE PRODUCT WAS JUST WITHDRAWN FROM SALE GREAT EPA LOGIC I HAVE SUCCESSFULLY USED ORNITROL SINCE 1984 AND I DESIGN ANTIROOSTING DEVICES THAT ARE PERMANENT REQUIRE NO MAINTENANCE AND CAUSE NO HARM TO THE BIRD RAPID FLOCK REDUCTIONS PUT BIRDS INTO AN INTENSIVE REPRODUCTIVE CYCLE AS THEY TRY TO PRESERVE THEIR LINEAGE BIRTH CONTROL DOES NOT CAUSE THIS REACTION IF THERE IS A JUDGMENT DAY WILL THE MASTER OF THE UNIVERSE ASK US IF WE WERE KIND TO THE CREATURES OF HIS CREATION 9404050091 940405 BUSINESS BRIEF DEB SHOPS INC RETAILER BUYS BACK STAKE FROM HOLDER PETRIE STORES DEB SHOPS INC PHILADELPHIA SAID IT PURCHASED ABOUT 18 OF ITS COMMON SHARES FROM PETRIE STORES CORP FOR 605 A SHARE OR 167 MILLION THE COMPANY SAID THE SHARES PURCHASED AT LESS THAN THE BOOK VALUE OF 698 A SHARE AT JAN 31 REPRESENTED A FAVORABLE INVESTMENT OPPORTUNITY FOR THE COMPANY THEY WILL BE HELD IN THE COMPANY'S TREASURY FOR FUTURE USE LEWIS LYONS CHIEF FINANCIAL OFFICER NOTED THAT WHAT WE WERE EARNING ON THE FUNDS WAS APPROXIMATELY THE SAME AMOUNT WE WERE PAYING OUT IN DIVIDENDS THE WOMEN'S APPAREL RETAILER OPERATES 365 STORES IN 40 STATES IT HAD ABOUT 156 MILLION SHARES OUTSTANDING BEFORE THE PURCHASE OF THE 28 MILLION SHARES IN THE LATE 1980S SECAUCUS NJBASED PETRIE INDICATED IT OR ITS CHAIRMAN MILTON PETRIE MIGHT SEEK TO ACQUIRE DEB SHOPS IN LATE 1989 PETRIE ACQUIRED DEB SHOPS SHARES FROM THE CHAIRMAN PETRIE SUBSEQUENTLY WROTE DOWN ITS DEB SHOPS INVESTMENT BY 137 MILLION IN LATE 1993 IN NASDAQ STOCK MARKET TRADING DEB SHOPS SHARES CLOSED UP 125 CENTS AT 6375 9404050090 940405 WHO'S NEWS DISNEY TAPS CEO EISNER AS PRESIDENT AFTER DEATH OF WELLS IN HELICOPTER CRASH BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF WALT DISNEY CO MOVING QUICKLY TO FILL A VOID IN ITS TOP RANKS SAID THAT MICHAEL D EISNER ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS ASSUMED THE ADDITIONAL TITLE OF PRESIDENT FOLLOWING THE DEATH OF FRANK G WELLS MR WELLS 62 YEARS OLD DIED IN A HELICOPTER ACCIDENT SUNDAY AFTER A SKI WEEKEND IN NEVADA THE NEWS SENT SHOCKWAVES THROUGH THE ENTERTAINMENT INDUSTRY MR WELLS HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER DURING THE NEARLY 10 YEARS OF THE MANAGEMENT TEAM LED BY MR EISNER WHO CAME IN AND REINVIGORATED THE ONCE SLEEPY DISNEY IN FACT MR WELLS A LONGTIME ENTERTAINMENT INDUSTRY LAWYER AND EXECUTIVE HAD BEEN CONSIDERED FOR THE CHAIRMAN JOB HIMSELF HE HAD STRONGLY RECOMMENDED THE HIRING OF MR EISNER ALTHOUGH HE WASN'T SO WELLKNOWN TO PEOPLE OUTSIDE THE BUSINESS HE WAS REGARDED AS A TALENTED OPERATING EXECUTIVE AND A SHREWD DEALMAKER WHO WAS SEEN IN HOLLYWOOD AS A TRUE GENTLEMAN MR EISNER FREQUENTLY SAID THAT HE AND MR WELLS RAN THE COMPANY AS PARTNERS WITH INDUSTRY OBSERVERS NOTING THAT MR WELLS'S STRONG BUSINESS GROUNDING PROVIDED AN IMPORTANT BALANCE TO MR EISNER'S CREATIVE BACKGROUND HE SPENT MUCH OF HIS TIME TENDING TO LEGAL MATTERS AT DISNEY BUT ALSO WAS DEEPLY INVOLVED IN THE COMPANY'S THEME PARK AND CONSUMERPRODUCTS OPERATIONS AS WELL AS ITS REALESTATE DEVELOPMENTS MR EISNER ALSO FREQUENTLY USED MR WELLS ON A PROJECTBYPROJECT BASIS ESPECIALLY WHERE DIFFICULTIES AROSE IN THE COMPANY'S MOST RECENT ANNUAL REPORT THE CHAIRMAN NOTED THAT MR WELLS HAD BEEN CONCENTRATING HIS FULL ATTENTION ON PROBLEMS AT TROUBLED EURO DISNEY SCA MR WELLS WAS INVOLVED IN THE LONG NEGOTIATIONS WITH THE RESORT'S BANK CREDITORS WHICH RESULTED LAST MONTH IN A SUCCESSFUL FINANCIAL RESTRUCTURING THE COMPANY DIDN'T SAY WHETHER IT PLANS TO FILL THE POST OF CHIEF OPERATING OFFICER OR WHETHER IT EVENTUALLY WILL NAME ANOTHER EXECUTIVE TO THE POST OF PRESIDENT MR EISNER WHO COUNTED MR WELLS AMONG HIS CLOSEST FRIENDS SAID OUR BUSINESS UNIT HEADS AND OTHER EXECUTIVES ARE AN EXTREMELY TALENTED GROUP WHO ARE ACCUSTOMED TO OPERATING AS A COORDINATED TEAM WE WILL CONTINUE TO OPERATE IN THE SAME FASHION WALL STREET ANALYSTS YESTERDAY PRAISED MR WELLS FOR HIS CONTRIBUTIONS TO THE COMPANY BUT ALSO SAID DISNEY'S MANAGEMENT TEAM IS SO STRONG THAT THE COMPANY WON'T FALTER IN HIS ABSENCE RICHARD P SIMON AN ANALYST AT GOLDMAN SACHS & CO SAID THAT WHILE IT IS IMPOSSIBLE TO MEASURE FRANK'S CONTRIBUTION TO DISNEY'S SUCCESS WE BELIEVE DISNEY'S MANAGEMENT HAS POSITIONED THE COMPANY FOR GROWTH THAT IS BASED ON A BROAD MANAGEMENT TEAM IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY DISNEY SHARES CLOSED AT 41625 DOWN 375 CENTS AT THE COMPANY'S ANNUAL SHAREHOLDERS' MEETING IN FEBRUARY THE TWO EXECUTIVES STOOD EXULTANT POINTING OUT THAT IT WAS THE 10TH SUCH MEETING THEY HAD COCHAIRED THEY USED THE OCCASION AS AN OPPORTUNITY TO CELEBRATE HOW DISNEY HAD CHANGED OVER THAT DECADE GROWING INTO A COMPANY THE STOCK MARKET VALUED AT MORE THAN 20 BILLION FROM ONE VALUED AT ABOUT 2 BILLION WHEN THEY TOOK OVER MR WELLS NOT SURPRISINGLY SHARED IN THAT SUCCESS FINANCIALLY AND WAS ONE OF DISNEY'S MOST HIGHLY COMPENSATED EXECUTIVES ALTHOUGH HE HAD A BASE SALARY OF 400000 PLUS A BONUS HE ALSO HAD RIGHTS TO LUCRATIVE STOCK OPTIONS IN 1989 AND AGAIN IN 1992 HE EXERCISED AND CASHED IN HIS OPTIONS FOR A TOTAL OF ABOUT 110 MILLION ASIDE FROM BEING A BUTTONEDDOWN CORPORATE EXECUTIVE MR WELLS WAS EQUALLY AT EASE LEADING THE LIFE OF A DAREDEVIL IN 1983 HE SET OUT TO CLIMB THE HIGHEST MOUNTAINS ON EACH OF THE WORLD'S SEVEN CONTINENTS WITHIN A SINGLE YEAR HE SCALED SIX BUT WAS FORCED TO TURN BACK NEAR THE TOP OF MOUNT EVEREST HE CHRONICLED THE ADVENTURE IN A BOOK HE COWROTE SEVEN SUMMITS 9404050089 940405 ECONOMY WHITE HOUSE AND FED SURPRISED BY RISE IN INTEREST RATES GROPE FOR A RESPONSE BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GENUINELY SURPRISED THAT THE BOND MARKET HAS PUSHED LONGTERM INTEREST RATES UP TO 740 HIGHER THAN THE DAY PRESIDENT CLINTON WAS INAUGURATED ADMINISTRATION AND FEDERAL RESERVE OFFICIALS ARE TRYING TO FIGURE OUT WHAT IF ANYTHING TO DO ABOUT IT MR CLINTON TOLD A TELEVISION INTERVIEWER IN CLEVELAND YESTERDAY THAT INTEREST RATES ARE TOO HIGH AND I THINK THEY WILL COME BACK DOWN BUT WHEN IT COMES TO DAYTODAY MARKET MOVEMENTS THE GOVERNMENT'S OPTIONS ARE LIMITED STILL FOR THE FED THE SHARP INCREASES IN LONGTERM INTEREST RATES IF SUSTAINED SUGGEST THAT FINANCIAL MARKETS DOUBT THE CENTRAL BANK'S ANTIINFLATION RESOLVE AND THAT COULD PROMPT THE FED TO INCREASE SHORTTERM RATES SOONER THAN PLANNED FOR THE TREASURY SKITTISH BOND MARKETS MAKE IT HARDER TO STAY ON THE SIDELINES IF THE DOLLAR RESUMES ITS FALL AGAINST THE YEN AND FOR THE WHITE HOUSE PALPABLE MARKET ANXIETY ABOUT ITS TRADE POLICIES STRENGTHENS THE HAND OF THOSE WHO ADVOCATE A LESS CONFRONTATIONAL STANCE TOWARD JAPAN AND CHINA WHEN FINANCIAL MARKETS WERE SOARING LAST YEAR AND LONGTERM INTEREST RATES WERE COMING DOWN ALMOST EVERYONE IN THE WHITE HOUSE AND THE FED WAS PREPARED TO TAKE CREDIT BUT WITH THE MARKETS NOW IN REVERSE OFFICIALS FIND IT SOMEWHAT HARDER TO EXPLAIN WHY THE MARKETS DO WHAT THEY DO RISING LONGTERM INTEREST RATES ARE A WORRY BECAUSE THEY PUSH UP MORTGAGE RATES AND MAKE IT MORE COSTLY FOR BUSINESSES TO INVEST IN NEW PLANTS AND EQUIPMENT IF THE US ECONOMY WERE BARRELING DOWN THE HIGHWAY AT 100 MILES AN HOUR THEN THE SUDDEN RISE IN RATES COULD BE SEEN AS A WELCOME BRAKE BUT MR CLINTON'S ADVISERS FEAR FINANCIAL MARKETS MAY BE OVERREACTING STOMPING ON THE BRAKES WHEN THE SPEEDOMETER HAS JUST REACHED 55 AS MR CLINTON PURSUED HIS DEFICITREDUCTION PROGRAM LAST YEAR YIELDS ON 30YEAR TREASURY BONDS FELL HITTING A LOW OF 579 LAST OCTOBER DOWN FROM 732 WHEN HE WAS INAUGURATED WHEN YIELDS BEGAN INCHING UP ADMINISTRATION ECONOMISTS SHRUGGED OFF THE INCREASE AS THE EXPECTED MARKET RESPONSE TO A STRENGTHENING ECONOMY BUT SINCE THE BEGINNING OF FEBRUARY WHEN THE FED RAISED SHORTTERM RATES FOR THE FIRST TIME IN FIVE YEARS AND USJAPANESE TRADE TALKS BROKE DOWN LONGTERM RATES HAVE SHOT UP MORE THAN A FULL PERCENTAGE POINT ALTHOUGH SOME OFFICIALS JOKE PRIVATELY THAT ANYTHING THAT DRIVES WHITEWATER OFF THE FRONT PAGES IS GOOD NEWS THE WHITE HOUSE HAS TAKEN TO TRYING TO CALM THE MARKETS AND THE NEWS MEDIA AND THE PUBLIC WITH PUBLIC REASSURANCE WHITE HOUSE ECONOMIC ADVISER ROBERT RUBIN A WALL STREET VETERAN MADE AN UNUSUAL APPEARANCE ON A SUNDAY TELEVISION TALK SHOW URGING EVERYONE TO FOCUS ON LONGTERM FUNDAMENTALS AND LAURA TYSON CHIEF WHITE HOUSE ECONOMIST IS GIVING SPEECHES TICKING OFF THE MANY REASONS THAT AS SHE PUTS IT RECENT CONCERNS ABOUT INFLATION LOOK TO BE A LITTLE EXAGGERATED IN CONTRAST TO THE USUAL UPBEAT GLOSS ON THE ECONOMIC STATISTICS THAT COMES FROM THE WHITE HOUSE MS TYSON AND OTHERS HAVE BEEN EMPHASIZING THAT THE ECONOMY ISN'T GROWING THAT QUICKLY OFFICIALS ALSO POINT OUT THAT UNLIKE THE RUNUP IN LONGTERM RATES IN THE CARTER YEARS THIS ONE IS INTERNATIONAL IN SCOPE SUGGESTING THAT IT DOESN'T REFLECT CONDITIONS JUST IN THE US BECAUSE THE CLINTON ADMINISTRATION INVESTED SO MUCH OF ITS PR CAPITAL IN SAYING THAT ITS BUDGET PACKAGE CAUSED INTEREST RATES TO COME DOWN WORLDWIDE THEY ARE LEFT IN THIS AWKWARD DILEMMA NOW THAT RATES HAVE GONE UP SAYS MICHAEL BOSKIN WHO HAD MS TYSON'S JOB IN THE BUSH ADMINISTRATION THE FED ISN'T LIKELY TO WAIT TO SEE IF MS TYSON'S FORECAST IS CORRECT THE ECONOMY IS IMPROVING MORE RAPIDLY THAN FED OFFICIALS AND STAFF FORECASTERS HAD EXPECTED THAT BY ITSELF COULD ACCELERATE THE FED'S TIMETABLE FOR INCREASING THE SHORTTERM RATES IT CONTROLS THE FED WOULD PREFER A STEADILY GROWING ECONOMY TO ONE THAT EXPANDS RAPIDLY AND OVERHEATS FORCING THE FED TO RAISE RATES SHARPLY AND RISK A RECESSION AVOID THE BOOM AVOID THE BUST THE BOND MARKET ADDS TO THE PRESSURE ON THE FED WHICH RAISED SHORTTERM RATES ONEQUARTER PERCENTAGE POINT IN FEBRUARY AND ANOTHER QUARTER POINT IN MARCH SOME ANALYSTS NOW SPECULATE THAT THE FED MAY ACT EVEN BEFORE THE NEXT SCHEDULED MEETING OF POLICY MAKERS ON MAY 17 EICKHOFF ECONOMICS INC A NEW YORK FORECASTING FIRM THAT ISN'T PARTICULARLY OPTIMISTIC ABOUT THE PACE OF THE ECONOMY SUGGESTS THE NEXT FED MOVE COULD BE ONEHALF PERCENTAGE POINT BECAUSE QUARTERPOINT MOVES HAVEN'T CALMED INFLATION ANTICIPATIONS AS THE FED HOPED GRABBING HEADLINES FROM HIS MORE RESTRAINED PEERS ECONOMIST CHARLES LIEBERMAN OF CHEMICAL SECURITIES INC PREDICTED THE FED WILL RAISE RATES ANOTHER 1 1/2 POINTS BY YEAR END THAT'S UNLIKELY BUT THE MORE WALL STREET EXPECTS A FED MOVE THE HARDER IT WILL BE FOR THE FED TO HOLD OFF AT THE TREASURY OFFICIALS AREN'T TALKING ABOUT THE DOLLAR IN PUBLIC BUT IT'S CLEAR FROM PAST STATEMENTS AND BEHAVIOR THAT IT IS MUCH MORE DIFFICULT FOR THEM TO TOLERATE A PLUNGE IN THE DOLLAR AGAINST THE YEN WHEN MARKETS ARE UNEASY AND INFLATION FEARS SPREADING MR BOSKIN MR BUSH'S ECONOMIST SAYS THAT THE SINGLE BEST THING THAT THIS ADMINISTRATION CAN DO WOULD BE TO STOP THIS FOOLISHNESS OF TALKING DOWN THE DOLLAR AND TALKING UP THE YEN WHICH IS VERY BAD TRADE POLICY AND VERY BAD FOR THE BOND MARKET BACK IN JANUARY THE CLINTON ADMINISTRATION ENJOYED WATCHING JAPAN AND ITS EXPORTERS SQUIRM AS THE YEN ROSE AND THE DOLLAR FELL BUT THAT WAS WHEN LONGTERM RATES WERE AROUND 6 1/4 AND THE FED WAS STILL PLACID FOR A VARIETY OF REASONS THE DOLLAR DIDN'T FLINCH MUCH AGAINST THE YEN YESTERDAY BUT IF IT BEGINS TO MOVE DOWN WITH ANY MOMENTUM THE TREASURY IS MUCH MORE LIKELY TO INTERVENE THAN IT WAS BACK IN JANUARY THE DOLLAR REMAINS STEADY AGAINST OTHER MAJOR CURRENCIES ADMINISTRATION OFFICIALS NOTE ADMINISTRATION OFFICIALS SAY THE BONDMARKET REBELLION ALREADY IS ALTERING THE TENOR OF INTERNAL DELIBERATIONS ON HOW HARD TO PUSH THE JAPANESE GOVERNMENT TO OPEN ITS MARKETS AND PRECISELY HOW TO IMPLEMENT MR CLINTON'S VOW TO RAISE TARIFFS ON CHINESE WARES IF CHINA FAILS TO IMPROVE ITS HUMANRIGHTS POLICIES THE BOND MARKET APPEARS ACUTELY SENSITIVE TO THE ADMINISTRATION'S TRADE RHETORIC AND ITS POLICIES AND THOSE OFFICIALS WHO WOULD COMPROMISE WITH CHINA AND WHO WOULD AVOID EXACERBATING TENSIONS WITH JAPAN ARE CITING MARKET UNEASINESS CONGRESS IS STILL ON VACATION AND THUS UNABLE TO CONTRIBUTE TO PUBLIC WORRY OVER FINANCIAL MARKETS WITH LAST YEAR'S DEFICITREDUCTION LAW INTACT AND NO NEARTERM CHANGES IN THE DEFICIT OUTLOOK LIKELY CONGRESS MAY BE OFF THE HOOK THIS TIME LOOKING FOR SOME SILVER LINING WHITE HOUSE ECONOMIST ALAN BLINDER OBSERVED YESTERDAY A NOTABLE FEATURE OF THIS RUNUP IN INTEREST RATES IS THAT NO ONE HAS PINNED IT ON FISCAL POLICY 9404050088 940405 BUSINESS BRIEF GENEVA STEEL UTAH STEELMAKER TO INCREASE TON PRICES IN TWO MARKETS GENEVA STEEL SAID IT WILL INCREASE THE PRICE FOR ITS HOTROLLED SHEET PRODUCTS 10 A TON IN ITS PACIFIC AND MOUNTAIN STATES MARKETS EFFECTIVE AUG 1 THE STATES IN THE COMPANY'S PACIFIC MARKET ARE WASHINGTON OREGON AND CALIFORNIA THE OTHER MARKET COMPRISES MONTANA IDAHO WYOMING NEVADA UTAH COLORADO ARIZONA AND NEW MEXICO THE VINEYARD UTAHBASED INTEGRATED STEEL MAKER SAID THE PLANNED INCREASE REFLECTS A STRENGTHENING OF THE DOMESTIC MARKET FOR HOTROLLED PRODUCTS GENEVA SAID IT WILL CONTINUE TO MEET COMPETITIVE PRICES AS THE MARKET REQUIRES GENEVA MANUFACTURES HOTROLLED STEEL SHEET PLATE AND PIPE 9404050087 940405 ENTERTAINMENT ROCK STAR TRIES NEW APPROACH TO SELLING TOUR BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL CALL IT THE MEAT LOAF EXPERIMENT INSTEAD OF STAGGERING TICKET SALES TO COINCIDE WITH LOCAL CONCERT DATES TICKETMASTER WILL RELEASE ALL THE TICKETS FOR ROCK SINGER MEAT LOAF'S UPCOMING 61DATE TOUR AT ONCE THIS SATURDAY AND FOR PERHAPS THE FIRST TIME EVER A ROCK TOUR HAS A NATIONAL ADVERTISING BUDGET 1 MILLION FUNDED HALF BY LOCAL PROMOTERS AND HALF BY MCA MEAT LOAF'S RECORD COMPANY WILL GO TO RUNNING ADS IN FOR EXAMPLE USA TODAY AND ON SATURDAY NIGHT LIVE AND THE LATE SHOW WITH DAVID LETTERMAN AN ADDITIONAL 1 MILLION IN CONCERT ADVERTISING WILL GO TO THE LOCAL MEDIA WE NEED TO DIRECT MORE MARKETING DOLLARS AT CONSUMERS SAYS ALLEN KOVAC MEAT LOAF'S MANAGER SOMETIMES PRACTICALLY THE ENTIRE ADVERTISING FOR AN ARTIST IS GETTING A RECORD PLAYED ON THE RADIO THE MEAT LOAF EXPERIMENT IS THE RESPONSE OF MR KOVAC AND HIS FIRM LEFT BANK ORGANIZATION TO THE LAGGING ROCKTOUR BUSINESS TICKET PRICES RUN TO ABOUT 30 FOR A TYPICAL ARENA SHOW AND THE RECESSION HAS HURT DEMAND YOUNG PEOPLE'S MUSIC IS FRAGMENTED THERE AREN'T THE SUPERGROUPS OF THE 1970S THAT UNITE VAST AUDIENCES BABY BOOMERS WHO MIGHT WANT TO SEE THEIR OLD FAVORITES SEEM TO PREFER PLUSH SEATS IN COMFORTABLE THEATERS TO STICKYFLOORED ARENAS EVEN BRUCE SPRINGSTEEN PLAYED TO SOME EMPTY SEATS ON HIS LAST TOUR PROMOTERS WHO WILL STILL HAVE TO PAY FOR LOCAL ADVERTISING ARE CHIPPING INTO THE NATIONAL FUND BUT NOT HAPPILY WE'RE APPREHENSIVE SAYS BEN LISS EXECUTIVE DIRECTOR OF THE NORTH AMERICAN CONCERT PROMOTERS ASSOCIATION A TRADE GROUP IN MCLEAN VA WE HAVE A LOT OF EXPERIENCE WITH GRASSROOTS CAMPAIGNS IN OUR OWN AREAS THE JURY IS OUT ON A NATIONAL APPROACH HE ADDS PROMOTERS TAKE ALL THE RISK AT SUCH CONCERTS MR LISS ADDS THE ARTIST IS GUARANTEED A LARGE FEE WHETHER THE SHOW SELLS OUT OR NOT AND THE BENEFITS TO MEAT LOAF OF ADDED RECORD SALES FROM THE NATIONAL CAMPAIGN DOESN'T BENEFIT CONCERT PROMOTERS WHO NEED TO SELL TICKETS IN FACT AMONG THE MOST SUCCESSFUL TOUR BANDS IN THE COUNTRY ARE JIMMY BUFFETT AND THE GRATEFUL DEAD WHICH DON'T SELL MANY RECORDS MEAT LOAF CAN ATTRACT AUDIENCES BIG ENOUGH TO MERIT THE PROMOTER CONTRIBUTIONS MR KOVAC SAYS THE ROBUST ROCK SINGER WHO HAS ENJOYED A MAJOR REVIVAL FOR THE PAST YEAR IS HUGELY POPULAR AS A LIVE PERFORMER HIS NEW RECORD BAT OUT OF HELL II BACK TO HELL HAS SOLD 11 MILLION ALBUMS WORLDWIDE SINCE ITS RELEASE LAST SEPTEMBER FOR MCA A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO MOREOVER MR KOVAC'S MANAGEMENT FIRM HAS THE ADDED LEVERAGE OF SAYING THAT AN UPCOMING JOHN MELLENCAMP TOUR WILL BE HANDLED THE SAME WAY ARTISTS' MANAGERS SAY THAT LOCAL PROMOTERS' ADVERTISING OFTEN CONSISTS OF LITTLE MORE THAN TRADEOUT ARRANGEMENTS WITH RADIO STATIONS FREE TICKETS FOR GIVEAWAY CONTESTS IN RETURN FOR PLUGS MANY PROMOTERS HAVE INHOUSE ADVERTISING AGENCIES THAT SOMETIMES CHARGE THE ARTIST FOR FULLPAGE ADS THAT ACTUALLY ARE LONG LISTS OF UPCOMING CONCERTS FEATURING MANY DIFFERENT ARTISTS AND THEN TAKE A COMMISSION OFF THE TOP MR LISS AND MR KOVAC AGREE ON ONE POINT HOWEVER THE ROCKTOUR BUSINESS IS IN THE DARK AGES SAYS MR LISS AND NEEDS BETTER COORDINATION AMONG PROMOTERS RECORD COMPANIES AND ARTISTS TO REACH CONSUMERS ESPECIALLY BECAUSE SOME ASPECTS OF THE BUSINESS HAVE BEEN EVISCERATED IN RECENT YEARS THE CONCERT BUSINESS WHICH USED TO THRIVE ALL YEAR NOW RUNS FROM MEMORIAL DAY TO LABOR DAY OFTEN IN OUTDOOR AMPHITHEATERS ROCK STARS HAVE BEEN HEARD TO SAY THEY'RE PLAYING AT A LOCAL 5000SEAT THEATER RATHER THAN A 15000SEAT ARENA BECAUSE THEY FAVOR AN INTIMATE SETTING THE TRUTH MAY BE THAT THEY DON'T LIKE GAZING OUT ON EMPTY SEATS FOR SEVERAL YEARS NOW ONLY A FEW ARTISTS HAVE BEEN ABLE TO FILL THOSE CAVERNOUS CEMENT BOXES WHERE BASKETBALL OR HOCKEY TEAMS PLAY MR KOVAC WANTS TO CORRECT ALL THIS WITH SYNERGY WE HAVEN'T BEEN DEVELOPING ARTISTS IN OUR BUSINESS HE SAYS FOR THE MEAT LOAF TOUR TICKETMASTER WILL ISSUE TICKETS THAT INCLUDE A COUPON OFFERING A 2 DISCOUNT ON MEAT LOAF'S NEW ALBUM FANS CAN CALL A TOLLFREE PHONE NUMBER TO ORDER MEAT LOAF MERCHANDISE AND GET CONCERT DATES AND LOCATIONS A NEW MEAT LOAF SINGLE AND MUSIC VIDEO WILL BE RELEASED NEXT MONTH JUST BEFORE THE TOUR SIMILARLY MR MELLENCAMP'S NEW ALBUM WILL INCLUDE A LIST OF CONCERT DATES IT WILL BE DIFFICULT TO JUDGE WHETHER THE MEAT LOAF IDEA WILL WORK MCA WILL BE ABLE TO SPOT A BOOST IN RECORD SALES BUT THE PROMOTERS WON'T HAVE A WAY TO KEEP SCORE IF THE TICKETS SELL OUT IMMEDIATELY ON SATURDAY PEOPLE MIGHT SAY IT WOULD HAVE HAPPENED ANYWAY IF THEY DON'T THE SAME ARGUMENT COULD APPLY MEANWILE IT'S A HIGHLY COMPETITIVE SUMMER ELTON JOHN BILLY JOEL PINK FLOYD THE ROLLING STONES AND PHIL COLLINS WILL ALL BE ON TOUR THE EAGLES SOLD 85000 TICKETS IN LESS THAN 90 MINUTES IN SOUTHERN CALIFORNIA LAST SATURDAY IN THIS CROWDED ATMOSPHERE SOME PEOPLE ARE GOING TO GET HURT SAYS MR LISS 9404050086 940405 MARKETING & MEDIA MARKETSCAN LEVER BROTHERS REGROUPS IN WAKE OF MARKETSHARE LOSSES IN 1993 BY KATHLEEN DEVENY AND GABRIELLA STERN SOAP MARKETER LEVER BROTHERS IS CLEANING HOUSE FACED WITH FLAGGING SALES IN MOST PRODUCT CATEGORIES THE US HOUSEHOLDPRODUCTS UNIT OF ANGLODUTCH UNILEVER GROUP IS IN THE MIDST OF A SWEEPING RESTRUCTURING PROGRAM DESIGNED TO REDUCE OVERHEAD COSTS BY MORE THAN 20 IMPROVE MARKETING AND SPEED UP PRODUCT INNOVATION UNDER THE PLAN LEVER WILL CUT ITS WORK FORCE BY 25 TO 2800 RESTRUCTURE ITS ENTIRE SALES ORGANIZATION AND SHUTTER A DETERGENT FACTORY THE COMPANY WILL ALSO GROUP ITS MANY LAUNDRY AND HOUSEHOLD PRODUCTS INTO TWO BUSINESS UNITS CRITICS SAY LEVER'S EFFORTS ARE OVERDUE AFTER MAKING STEADY GAINS IN 1992 AGAINST ARCHRIVAL PROCTER & GAMBLE CO LEVER LAST YEAR LOST MARKET SHARE IN BRAND AFTER BRAND SALES OF ITS LIQUID LAUNDRY DETERGENTS IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS FELL 15 IN 1993 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SALES OF POWDER DETERGENTS MEANWHILE FELL 11 EVEN SALES OF LEVER'S BAR SOAPS A BRIGHT SPOT FOR THE COMPANY FELL SLIGHTLY OVER THE NEXT FEW DAYS SALARIED EMPLOYEES WILL BE NOTIFIED IF THEIR JOBS HAVE BEEN ELIMINATED ACCORDING TO AN INTERNAL MEMORANDUM SALARIED EMPLOYEES WILL ACCOUNT FOR HALF OF THE 1000 POSITIONS LEVER PLANS TO CUT WITH ABOUT 20 OF THE TOTAL CUTS COMING THROUGH ATTRITION AND AN EARLYRETIREMENT PROGRAM ANOTHER 400 JOBS WILL BE ELIMINATED WHEN THE COMPANY CLOSES A SOAP AND DETERGENT PLANT IN LOS ANGELES NEXT MONTH IT'S AN AMBITIOUS PLAN SAYS CHARLES B STRAUSS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LEVER AND WE'RE GOING TO DO IT FAST HE ADDS SOME MARKETING EXPERTS SAY THE PLAN DOESN'T GO FAR ENOUGH BECAUSE UNILEVER IS HIGHLY DECENTRALIZED ITS HOUSEHOLD PRODUCTS FOOD AND PERSONALCARE UNITS OPERATE AS INDEPENDENT COMPANIES THE COMPANY MUST MAINTAIN SEPARATE SALES ORGANIZATIONS AND LEGAL STAFFS FOR EACH DIVISION TO REDUCE ITS STAFF ENOUGH TO BRING COSTS IN LINE WITH COMPETITORS CONSULTANTS AND FORMER EXECUTIVES SAY UNILEVER WOULD HAVE TO CONSOLIDATE ITS VARIOUS BUSINESSES INTO ONE US UNIT THIS IS A CLASSIC HALF MOVE SAYS ONE MARKETING CONSULTANT IT TAKES COURAGE TO DO WHAT THEY'RE DOING BUT IT'S JUST ONE SHADE ABOVE BEING COSMETIC LEVER'S RECENT TROUBLES ARE PARTLY DUE TO REDOUBLED EFFORTS ON THE PART OF P&G P&G HAS SCRAMBLED TO PARE ITS OWN OVERHEAD COSTS BY TRIMMING ITS BUREAUCRACY AND CONSOLIDATING ITS MANUFACTURING FACILITIES AND AFTER ORIGINALLY ALIENATING SOME RETAILERS WITH ITS PLAN TO REDUCE PROMOTIONS P&G HAS EASED THE TENSION BY CONTINUING TO SELECTIVELY PROMOTE SOME PRODUCT LINES A BROAD EFFORT TO CUT RETAIL PRICES OF MANY BRANDS MEANWHILE HAS WON FAVOR AMONG CONSUMERS MANY OF WHOM BECAME INCREASINGLY PRICECONSCIOUS DURING THE ECONOMIC SLUMP LEVER'S RESTRUCTURING WON'T BE A PANACEA MANY OF LEVER'S CURRENT PROBLEMS ARE MORE RELATED TO MARKETING MISCUES THAN HIGH COSTS LEVER BROTHERS LAGGED BEHIND P&G BY SEVERAL MONTHS IN ROLLING OUT A HIGHLY CONCENTRATED VERSION OF ITS LIQUID LAUNDRY DETERGENT BRANDS WISK ALL AND SURF IN THE US WHAT'S MORE LEVER CONFUSED CONSUMERS BY MAKING ITS DETERGENTS MORE CONCENTRATED THAN THOSE ALREADY ON THE MARKET AT THE SAME TIME P&G GAINED SHARE BY CUTTING THE PRICE OF ITS CONCENTRATED LIQUID TIDE BECAUSE BOTTLES OF LEVER'S MORE HIGHLY CONCENTRATED WISK WERE SMALLER THAN P&G CONCENTRATED TIDE MANY CONSUMERS ASSUMED THE LEVER PRODUCTS WERE SIMPLY MORE EXPENSIVE MEANWHILE DIAL CORP BEGAN TO GAIN SHARE WITH ITS BARGAINPRICED PUREX BRAND WHICH DOESN'T COME IN A CONCENTRATED VERSION AT ALL AMERICANS THINK BIG IS BETTER AND WHEN YOU BUY A BIGGER BOTTLE YOU END UP PAYING LESS FOR IT SAYS BONITA AUSTIN AN ANALYST AT LEHMAN BROTHERS INC ALL OF A SUDDEN LEVER WAS IN TROUBLE AS LEVER SCRAMBLED TO EXPLAIN THE DIFFERENCE BETWEEN DETERGENTS TO CONSUMERS COMPETITORS SAY ITS MARKETING COSTS ESCALATED AND ATTENTION WAS DIVERTED AWAY FROM ITS OTHER PRODUCTS INCLUDING ITS FABRIC SOFTENERS DISHWASHING DETERGENTS AND BAR SOAPS MEANWHILE P&G STEPPED UP EFFORTS TO TRY TO REGAIN ITS LEAD IN THE BARSOAP CATEGORY AFTER LOSING GROUND TO LEVER AFTER IT LAUNCHED ITS HIGHLY SUCCESSFUL LEVER 2000 DEODORANT SOAP AFTER LOSING GROUND TO LEVER'S 2000 DEODORANT SOAP AND ITS PREMIUMPRICED DOVE BRAND P&G CHIPPED AWAY AT LEVER'S LEAD WITH A NEW OIL OF OLAY BATH BAR AND A REFORMULATED WHITEWATER ZEST WE ARE DISAPPOINTED WITH OUR DETERGENT RESULTS CONCEDES LEVER'S MR STRAUSS WE OVERESTIMATED THE CONSUMERS' INTEREST IN HIGHLY CONCENTRATED PRODUCTS TO LURE BACK CUSTOMERS MR STRAUSS SAYS LEVER WILL ONCE AGAIN PROMOTE REGULARSTRENGTH VERSIONS OF ITS LIQUID LAUNDRY DETERGENTS AS WELL AS SUPERCONCENTRATES AND FUTURE ADVERTISING FOR LEVER'S LAUNDRY PRODUCTS WILL FOCUS ON WISK'S TRADITIONAL STAINREMOVING POSITIONING AND ALL'S BUDGET APPEAL FOR EXAMPLE RATHER THAN TOUTING THE CONCENTRATED FORMULATION MR STRAUSS ALSO VOWS THAT LEVER WILL MAINTAIN ITS LEAD AS THE LARGEST MARKETER IN THE BARSOAP CATEGORY AND IS LAUNCHING NEW PRODUCTS OF ITS OWN INCLUDING A LIQUID VERSION OF ITS CARESS BATH SOAP MEANT TO BE USED IN THE SHOWER MR STRAUSS A FORMER PRESIDENT OF UNILEVER'S RAGU FOODS BUSINESS SAYS HIS RESTRUCTURING PLAN ISN'T LINKED TO SHORTTERM CHANGES IN THE COMPANY'S US MARKET SHARES BUT RATHER AIMED AT KEEPING LEVER COMPETITIVE IN AN ENVIRONMENT OF INCREASED PRICE CUTTING LEVER'S PROGRAM IS PART OF A LARGER STREAMLINING EFFORT ANNOUNCED BY ITS PARENT UNILEVER IN FEBRUARY UNILEVER IS EXPECTED TO SPEND ABOUT 180 MILLION TO RESTRUCTURE ITS US OPERATIONS WITH MOST GOING TO LEVER LEVER BROTHERS ACCOUNTS FOR ABOUT ONE THIRD OF UNILEVER'S 9 BILLION IN US REVENUES MANY OF LEVER'S RESTRUCTURING EFFORTS ARE AIMED AT STREAMLINING THE COMPANY'S MARKETING FUNCTIONS LEVER IS SET TO REORGANIZE ITS SALES FORCE OF 850 PEOPLE CUTTING THE NUMBER OF EMPLOYEES BY ONE THIRD AND CONTRACTING WITH AN OUTSIDE FIRM TO HANDLE ITS MERCHANDISING WHICH INCLUDES STOCKING RETAILERS' SHELVES AND BUILDING STORE DISPLAYS THE CHANGE WILL ALLOW LEVER'S REMAINING SALES PEOPLE TO BETTER SERVE THE COMPANY'S RETAIL CUSTOMERS ACCORDING TO MR STRAUSS BY HELPING THEM MANAGE INVENTORY OR ALLOCATE SHELF SPACE TO SPEED NEWPRODUCT DEVELOPMENT AND MAKE THE SLOWMOVING COMPANY MORE NIMBLE IN THE MARKET MR STRAUSS ALSO PLANS TO REORGANIZE THE COMPANY'S MANY BRANDS INTO TWO BUSINESS UNITS ONE FOR ALL FABRICCARE PRODUCTS AND ANOTHER RESPONSIBLE FOR THE COMPANY'S HOUSEHOLD PRODUCTS AND BAR SOAPS MR STRAUSS HAS NAMED JOHN W RICE WHO WORKED WITH HIM AT RAGU TO HEAD THE HOUSEHOLD PRODUCTS UNIT HE HAS YET TO NAME A GENERAL MANAGER FOR THE LAUNDRYPRODUCTS BUSINESS 9404050085 940405 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY MARCH 23 1994 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9404050084 940405 ENVIRONMENT ELECTRIC CARS ALSO POLLUTE AIR EPA STUDY SAYS BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL THEY'RE CALLED ZEROEMISSION VEHICLES BY THEIR ADVOCATES BUT IT TURNS OUT THAT ZEROEMISSION VEHICLES DON'T HAVE ZERO EMISSIONS ACCORDING TO A RECENT REPORT BY THE US ENVIRONMENTAL PROTECTION AGENCY ELECTRIC CARS MAY NOT BELCH EXHAUST BUT THE PLANT THAT GENERATES THE POWER TO CHARGE AN ELECTRIC VEHICLE'S BATTERIES DOES AND MORE ELECTRIC VEHICLES NEEDING POWER COULD MEAN MORE POLLUTION FROM POWERPLANT SMOKESTACKS PARTICULARLY IN THE NORTHEAST THE EPA REPORT SAYS THIS FINDING RELEASED IN A PRELIMINARY STUDY TWO WEEKS AGO THAT EPA STAFFERS CALLED A WORK IN PROGRESS HAS STIRRED CONTROVERSY IN ENVIRONMENTAL AND AUTOINDUSTRY CIRCLES ENVIRONMENTALISTS FEAR THE STUDY COULD BECOME A ROADBLOCK TO POLICIES FAVORING ELECTRIC VEHICLES AUTOINDUSTRY EXECUTIVES WORRY THE REPORT DOESN'T GO FAR ENOUGH TO DISCREDIT ELECTRIC VEHICLES IN THE MIDDLE IS THE EPA WHICH RELEASED THE SENSITIVE REPORT ONLY BECAUSE OF PUBLIC AND CONGRESSIONAL PRESSURE THE EPA WILL DECIDE LATER THIS YEAR WHETHER A COALITION OF STATES IN THE NORTHEAST MAY PROCEED WITH PLANS FOR A STRINGENT POLLUTIONCONTROL PROGRAM FOR MOTOR VEHICLES LIKE THAT OF CALIFORNIA THE CALIFORNIA RULES CALL FOR AUTO MAKERS TO MAKE 2 OF THE VEHICLES THEY SELL IN THE STATE ZEROEMISSION VEHICLES BY 1998 SOME OF THE NORTHEAST STATES WANT TO INCLUDE A SIMILAR ZEROEMISSION VEHICLE MANDATE IN THEIR PLANS A PROPOSAL AUTO MAKERS HAVE CHARACTERIZED AS UNATTAINABLE BECAUSE OF COST AND TECHNOLOGY EMISSIONS MAY ALSO BE A PROBLEM THE EPA NOW SAYS AND IT WANTS FURTHER STUDY ON THE POSSIBLE INCREASE IN POWERPLANT EMISSIONS THAT COULD ARISE FROM CHARGING LARGE NUMBERS OF ELECTRIC VEHICLES IN AREAS WHERE POWER PLANTS ARE FUELED BY COAL AND OIL THE AGENCY'S STUDY SUGGESTS THE ENERGY DEMANDS OF ELECTRIC VEHICLES COULD HURT AIR QUALITY FOR EXAMPLE NITROGEN DIOXIDE EMISSIONS WHICH ARE COMMON IN MANY POWER PLANTS HELP TO CREATE SMOG THE EPA'S REPORT ALSO COMPARES TAILPIPE EMISSIONS FROM GASOLINEPOWERED VEHICLES WITH POWERPLANT EMISSIONS GENERATED BY ELECTRIC VEHICLES IN A CHART THE EPA STUDY SHOWS HOW AN ELECTRIC VEHICLE POWERED BY LEADACID BATTERIES CAN GENERATE THE EQUIVALENT OF 393 GRAMS OF CARBON MONOXIDE PER MILE DURING 100 MILES OF DRIVING BECAUSE OF ITS ENERGY NEEDS CARBON MONOXIDE IS COLORLESS ODORLESS AND HIGHLY POISONOUS BY COMPARISON A GASOLINEPOWERED CAR PLACED UNDER TODAY'S FEDERAL STANDARDS FOR TAILPIPE EXHAUSTS PRODUCES 354 GRAMS PER MILE OF CARBON MONOXIDE OR ABOUT 10 LESS ASSUMING A 200MILE DRIVING RANGE AND REGULAR TAILPIPE INSPECTIONS THE EPA'S CHART ALSO SHOWS THAT TO BE TRUE WHEN AN ELECTRIC VEHICLE IS COMPARED WITH A CONVENTIONAL AUTOMOBILE THAT HAS TO MEET CALIFORNIA'S LOW EMISSION VEHICLE STANDARD THE CALIFORNIA CAR ALSO PRODUCES FEWER GRAMS OF CARBON MONOXIDE PER MILE THAN THE ELECTRIC VEHICLE STILL EPA OFFICIALS SAY THAT BECAUSE MANY CALIFORNIA POWER PLANTS ARE FUELED BY NATURAL GAS WHICH IS RELATIVELY CLEAN ELECTRIC VEHICLES MAY STILL BE A BENEFIT THERE ELECTRIC VEHICLES MAKE SENSE IN CALIFORNIA BUT THEY DON'T MAKE SENSE IN OHIO BECAUSE THE POWER PLANTS USE DIFFERENT FUELS SAYS DICK WILSON THE EPA'S DIRECTOR FOR MOBILE SOURCES MR WILSON SAYS THE EPA HAS BEEN INUNDATED WITH PHONE CALLS SINCE REPORTS ABOUT THE STUDY FIRST LEAKED OUT IN JANUARY JUST DAYS BEFORE ENVIRONMENTAL REGULATORS IN THE NORTHEAST WERE TO VOTE ON THEIR CLEANCAR PLAN CRITICS OF THE EPA STUDY ARGUE THAT THE EPA'S ANALYSIS IS FLAWED BECAUSE IT RELIES ON CURRENT AVERAGES FOR POWERPLANT EMISSIONS TO COMPUTE ITS ELECTRICVEHICLE RESULTS THAT FAILS TO RECOGNIZE THAT POWER PLANTS ALSO ARE GETTING CLEANER AS NEW REGULATIONS COME ON LINE THE EPA WORK DOESN'T HAVE MUCH WEIGHT AT ALL SAYS MICHAEL BRADLEY EXECUTIVE DIRECTOR OF THE NORTHEAST STATES FOR COORDINATED AIR USE MANAGEMENT OR NESCAUM A BOSTONBASED DEVELOPER OF REGIONAL POLLUTIONCONTROL POLICIES OTHERS SUGGEST THE PROBLEM IS POWER PLANTS NOT ELECTRIC VEHICLES IN CERTAIN STATES EVS ARE NOT NECESSARILY A GREAT MOBILE SOURCE STRATEGY BUT THEN MAYBE THEY SHOULDN'T USE REFRIGERATORS OR HAIR DRYERS IN THOSE STATES SAYS SHEILA LYNCH OF THE BOSTONBASED NORTHEAST ALTERNATIVE VEHICLE CONSORTIUM INDEED THE EPA'S WORK IS DESTINED TO JOIN A GROWING PILE OF CONTRADICTORY STUDIES OF THE BENEFITS OF ELECTRIC VEHICLES IN CALIFORNIA WHERE THE FIRST ZEROEMISSIONS MANDATE WAS FORGED THE EPA'S STUDY HAS ALREADY BEEN DISMISSED BY STATE REGULATORS WHO HAVE DECIDED TO CONTINUE THEIR PUSH FOR ELECTRIC VEHICLES OUR CALCULATIONS ARE BASED ON WHAT WE KNOW CALIFORNIA POWERPLANT EMISSIONS TO BE WHICH IS THE REAL WORLD TO US SAYS A SPOKESMAN FOR THE CALIFORNIA AIR RESOURCES BOARD THE STATE'S POWERFUL AGENCY FOR POLLUTION CONTROL NEVERTHELESS AUTOINDUSTRY EXECUTIVES AND CRITICS OF ELECTRIC VEHICLES SAY THE EPA'S ANALYSIS WILL HAVE AN IMPACT BECAUSE IT CHALLENGES THE POLLUTIONFREE IMAGE ELECTRIC VEHICLES HAVE ENJOYED THERE ARE SO MANY PEOPLE WHO HAVE THIS IMPRESSION IN THEIR MIND THAT ELECTRIC VEHICLES ARE SOMEHOW TOTALLY BENIGN SAYS TOM AUSTIN A FORMER CALIFORNIA AIR RESOURCES BOARD EXECUTIVE OFFICER WHO HAS ASSAILED THE STATE'S ZEROEMISSIONS RULE BEFORE THE CALIFORNIA ASSEMBLY THIS STUDY SHOWS THAT FOR MOST AREAS OF THE COUNTRY THIS IS JUST NOT SO AT ALL 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 9404050083 940405 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 NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 199476 IS BACKED BY THE AGENCY'S STRIPPED MORTGAGEBACKED SECURITIES TRUST 262 THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 85 AND WEIGHTED AVERAGE MATURITY OF 330 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 299 MILLION OF REMIC SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 199469 IS BACKED BY THE AGENCY'S STRIPPED MORTGAGEBACKED SECURITIES TRUST 257 FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION REMIC SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 199470 IS BACKED BY VARIOUS FANNIE MAE REMIC TRANCHES AND FANNIE MAE STRIP CLASSES FEDERAL NATIONAL MORTGAGE ASSOCIATION 115 MILLION OF REMIC SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 199474 IS BACKED BY VARIOUS FANNIE MAE REMIC CLASSES 9404050082 940405 RUSSIA'S ARMY BRITTLE AND DANGEROUS BY CHARLES DICK AS A NUCLEAR POWER RUSSIA IS STILL FORMIDABLE ITS FORCES ARE CAPABLE OF ACTING AS A DETERRENT TO NUCLEAR AND EVEN CONVENTIONAL ATTACK BUT THEY ARE HARDLY RELEVANT TO WHAT MAY WELL BE RUSSIA'S PROXIMATE AIM REESTABLISHING AT LEAST SOME OF THE BORDERS OF THE FORMER SOVIET UNION THE TOOL FOR ACHIEVING THIS GOAL IS AS ALWAYS IN THE PAST THE ARMY WERE ONE TO BE MESMERIZED AS ANALYSTS SO OFTEN ARE BY EQUIPMENT INVENTORIES THE RUSSIAN ARMY WOULD APPEAR TO REMAIN A FORMIDABLE FORCE ACCORDING TO THE LONDONBASED INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES IT STILL FIELDS ABOUT 25000 TANKS 22000 INFANTRY FIGHTING VEHICLES 23000 ARMORED PERSONNEL CARRIERS OR APCS 22500 ARTILLERY SYSTEMS 3500 ATTACK HELICOPTERS AND 800 OPERATIONALTACTICAL MISSILES IN ADDITION SUBSTANTIAL STOCKPILES OF TANKS AND ARTILLERY SYSTEMS ARE HELD IN STORE EAST OF THE URALS WHAT SUCH STATISTICS REVEAL IS OF COURSE INTERESTING BUT WHAT THEY CONCEAL IS VITAL WHEN THE FORMER SOVIET ARMY WAS DIVIDED UP OR PRIVATIZED AS THE GENERAL STAFF BITTERLY COMPLAINED A HIGH PROPORTION OF MORE MODERN EQUIPMENT WENT TO THE ERSTWHILE FRONTIER MILITARY DISTRICTS NOW IN INDEPENDENT BELARUS AND UKRAINE WITH THEM WENT THE REPAIR FACILITIES DEPLOYED TO SUPPORT AN OFFENSIVE WAR INCLUDING 80 OF THOSE FOR ARMORED FIGHTING VEHICLES THESE FACTORS COMBINED WITH A SEVERE SHORTAGE OF SPARE PARTS GO A LONG WAY TOWARD EXPLAINING WHY MAYAK RADIO A RUSSIAN STATION REPORTED ON FEB 3 OF THIS YEAR THAT ONLY 20 OF RUSSIAN TANKS FOR EXAMPLE ARE CURRENTLY COMBATREADY EVEN IF EQUIPMENT WERE GENERALLY READY FOR USE AND SUSTAINABLE IN COMBAT THE FORMATIONS DEPLOYED IN EUROPE WOULD BE FOR THE MOST PART OF VERY LIMITED EFFECTIVENESS IN THE NEAR FUTURE MOST ARE IN THE THROES OF A FARREACHING AND IT MUST BE SAID WELLPLANNED REORGANIZATION AND COMBAT TRAINING IS ALMOST NONEXISTENT EQUIPMENT AND TRAINING DEFICIENCIES PALE IN COMPARISON TO THOSE OF PERSONNEL HOWEVER THIS JANUARY DEFENSE MINISTER PAVEL GRACHEV CLAIMED THAT THE ARMED FORCES' STRENGTH WAS 2431000 THOUGH IT'S UNCLEAR WHETHER HE WAS TALKING ABOUT THE NOMINAL SIZE OF THE MILITARY ESTABLISHMENT OR THE REAL NUMBER OF PEOPLE IN UNIFORM THE ACTUAL STRENGTH TODAY IS PROBABLY RATHER LESS THAN 15 MILLION WITH ROUGHLY HALF THE TOTAL BEING OFFICERS THE REASON FOR THIS EXTRAORDINARY RATIO OF OFFICERS TO FOOT SOLDIERS IS CLEAR THE VAST MAJORITY OF RUSSIAN MEN TRY TO EVADE MILITARY SERVICE AND MOST OF THEM SUCCEED IN THE AUTUMN 1993 CALLUP 22 OF THE DRAFTEES GAINED EXEMPTION ON MEDICAL GROUNDS A FIGURE UP FROM 5 IN 1988 DUE LARGELY TO FRAUDULENT CLAIMS 57 WERE EXCUSED FOR OTHER REASONS AND MORE THAN 5 IE 70000 MEN DODGED THE DRAFT FURTHERMORE IT WAS REPORTED LAST YEAR THAT THE AVERAGE DESERTION RATE WAS 120 SOLDIERS PER WEEK THESE FIGURES ARE FIRM EVIDENCE OF LOW MORALE AND LOSS OF SENSE OF PURPOSE THE ARMY BLAMES THE LATTER ON THE LIBERAL MEDIA'S EROSION OF MILITARYPATRIOTIC VALUES UNDOUBTEDLY THIS IS A FACTOR BUT OTHERS ARE MORE IMPORTANT FOREMOST AMONG THESE IS THE APPALLING TREATMENT METED OUT TO CONSCRIPTS IN MOST UNITS THE OFFICERS DO NOT GENERALLY LOOK AFTER THEIR MEN AND THE CONSCRIPT NCOS BY VIRTUE OF THEIR LACK OF MATURITY AND EXPERIENCE ARE INCAPABLE OF DOING SO THE RESULT IS THE ALLPERVASIVE DEDOVSHCHINA OR HAZING OF THE MORE VULNERABLE SOLDIERS BY THEIR FELLOW CONSCRIPTS IT IS ESTIMATED THAT AT LEAST FIVE SOLDIERS DIE EACH DAY FROM NONCOMBAT CAUSES SOME 60 OF THESE DEATHS ARE THE RESULT OF MURDER AND 25 ARE SUICIDES MOSTLY PROVOKED BY DEDOVSHCHINA TODAY'S BARRACKS ARE DOMINATED BY GANGS WHOSE ETHOS IS SUBVERSIVE OF DISCIPLINE AND OF MILITARY AND SOCIETAL VALUES AND WHO ARE RESPONSIBLE FOR A DAILY RATE OF ABOUT 80 CRIMES INCLUDING AT LEAST 10 THEFTS OF WEAPONS AND AMMUNITION FOR SALE ON THE BLACK MARKET THESE SAMPLE STATISTICS ILLUSTRATE GRAPHICALLY THE TREND TOWARD DISILLUSION DESPAIR AND LACK OF RESPECT FOR AUTHORITY THAT CHARACTERIZES BOTH THE ARMY AND SOCIETY AS A WHOLE THEY ARE ALSO INDICATIVE OF THE LOSS OF MORALE AND COHESION THAT MAKES MOST UNITS ALL BUT COMBAT INEFFECTIVE THE OFFICER CORPS IN WHOSE HANDS MUST REST ANY RESTORATION OF THE ARMED FORCES' EFFECTIVENESS IS JUST AS DEMORALIZED AS THE SOLDIERY A MID1993 POLL INDICATED THAT 92 OF OFFICERS HAD NO FAITH IN TOMORROW 50 COMPLAINED OF WORSENING LIVING CONDITIONS AND 35 OF AN INCREASING ABSENCE OF SOCIAL PROTECTION 34 COULD SEE NO POINT IN CONTINUING TO SERVE MANY ARE AS LENIN ONCE PUT IT VOTING WITH THEIR FEET IN THE PAST TWO YEARS MORE HAVE LEFT PREMATURELY THAN HAVE JOINED AND THOSE WHO GO TEND TO BE THE BETTER SORT OF OFFICERS WHO WOULD BE NEEDED TO REBUILD THE ARMY THE REASONS FOR THIS COLLAPSE OF MORALE ARE CLEAR THERE IS THE SENSE OF DEFEAT ENGENDERED BY THE WITHDRAWALS FROM AFGHANISTAN AND EASTERN EUROPE AND ABOVE ALL THE BREAKUP OF THE SOVIET UNION THERE IS THE LOSS OF PRESTIGE AND PRIVILEGE THAT STARTED IN THE GORBACHEV ERA AND THAT HAS INCREASINGLY ALIENATED THE MILITARY FROM SOCIETY AND THERE ARE THE PRACTICAL PROBLEMS OF EVERYDAY LIFE WAGES GENERALLY LAG BEHIND INFLATION SO MUCH SO THAT JUNIOR OFFICERS WITH FAMILIES LIVE BELOW THE POVERTY LINE MOREOVER PAY IS OFTEN MONTHS IN ARREARS SOME 125000 OFFICERS ARE HOMELESS BEING FORCED TO LIVE IN TENTS OR TANK SHEDS FOR INSTANCE AND THE FIGURE COULD EASILY RISE TO ABOUT 400000 ONCE TROOP WITHDRAWALS ARE COMPLETED WORKING CONDITIONS ARE ALSO INCREASINGLY INTOLERABLE FOR MANY ABOVE ALL BECAUSE SHORTAGES OF CONSCRIPTS LEAD TO OFFICERS HAVING TO DO SOLDIERS' TASKS SUCH AS DOUBLESHIFT GUARD DUTIES DISSATISFACTION AND LOW MORALE EXTEND BEYOND THE ARMED FORCES INTO THE MILITARY INDUSTRIES STATE ORDERS AND PRODUCTION CONTINUE TO FALL THUS FOR INSTANCE THE POSTSOVIET RUSSIA PRODUCED ONLY ABOUT 200 TANKS IN 1993 DOWN FROM 600 IN 1992 AND ABOUT 1700 TANKS PRODUCED IN THE SOVIET UNION OF 1989 MOREOVER THE STATE IS IN DEBT TO THE MILITARY WITH COLOSSAL INTERENTERPRISE DEBTS CRIPPLING RESEARCH AND DEVELOPMENT PRODUCTION AND THE ALLBUTDEFUNCT DEFENSECONVERSION PROGRAM GIVEN THAT SIX MILLION TO SEVEN MILLION PEOPLE WORK IN THE DEFENSE SECTOR AND THAT THEY HAVE AN ADDITIONAL 13 MILLION OR SO DEPENDENTS DRAMATICALLY FALLING REAL WAGES LAYOFFS AND THE PROSPECTS OF MASS UNEMPLOYMENT IN SOME CASES THREATENING ENTIRE CITIES HAVE IMPORTANT SOCIAL AND POLITICAL CONSEQUENCES ONE OF THESE CONSEQUENCES IS THE INCREASING RADICALIZATION OF BOTH THE ARMED FORCES AND THOSE MANAGING AND WORKING IN THE DEFENSE INDUSTRIES TOGETHER THEY FORM A POWERFUL POLITICAL FORCE AS GEN VM DUDNIK TOLD MOSCOW TELEVISION ON OCT 17 THE ARMY NEVER SUPPORTS THE WEAK THE ARMY ALWAYS SUPPORTS REAL POWER THAT IS WHY IT CURRENTLY SUPPORTS THE AUTHORITY AND THOSE STRUCTURES THAT FOUND THEY HAD THE REAL LEVERS OF POWER SECOND IT WILL SUPPORT THE POWER THAT SHOWS A REAL READINESS TO RAISE ITS STATUS THIRD IT WILL SUPPORT THE POWER THAT IS READY TO IMPLEMENT A MORAL CLEANSING OF THE DEAD WEIGHT IT HAS INHERITED TODAY THIS FUNCTION IS BEING CARRIED OUT BY THE PRESIDENT AND HIS TEAM THIS COMMENT MADE JUST AFTER THE STORMING OF THE RUSSIAN PARLIAMENT WAS A LESS THAN WHOLEHEARTED ENDORSEMENT OF PRESIDENT YELTSIN ENTHUSIASM FOR HIM IS EVEN LESS EVIDENT TODAY IN DECEMBER'S ELECTIONS 60 TO 80 OF THE MILITARY ARE ESTIMATED TO HAVE SUPPORTED THE EXTREME NATIONALIST VLADIMIR ZHIRINOVSKY IF MR YELTSIN IS UNABLE OR UNWILLING TO DELIVER WHAT THE MILITARY AND ITS INDUSTRIAL ALLIES WANT THERE IS A REAL DANGER THAT HE WILL MAKE POTENTIALLY DECISIVE POLITICAL ENEMIES HOWEVER WHAT THEY WANT AS WAS MADE CRYSTAL CLEAR IN THE MILITARY DOCTRINE PUBLISHED IN NOVEMBER IS A VIRTUAL HALT TO ECONOMIC REFORM AND A RESTORATION OF THEIR POWER PRIVILEGES AND PRIORITY CALL ON THE NATION'S RESOURCES SUCH A RETURN TO SOVIETISM WOULD PROLONG THE ECONOMIC SLUMP INDEFINITELY AND COULD PROVOKE A REAL REVOLUTION OR CIVIL WAR TRULY THE PRESIDENT IS BETWEEN A ROCK AND A HARD PLACE THE PICTURE I HAVE SKETCHED HERE REFLECTS MY OWN VIEWS AND NOT NECESSARILY THOSE OF MY GOVERNMENT AND IT IS CLEAR THAT THE RUSSIAN ARMY IS NO GREAT THREAT TO NATO EXCEPTING OF COURSE ITS NUCLEAR ELEMENT BUT IT IS AN INCREASING THREAT TO THE INDEPENDENCE OF STATES IN RUSSIA'S SOCALLED NEAR ABROAD AS EVIDENCED BY EVENTS IN GEORGIA MOLDOVA AND TAJIKISTAN OF COURSE THE ARMY MIGHT WELL BECOME A POLITICAL TOOL WITHIN RUSSIA IT IS HOWEVER A BRITTLE INSTRUMENT WITH ANY SIGNIFICANT USE IT MAY WELL SHATTER MR DICK IS DIRECTOR OF BRITAIN'S ROYAL MILITARY ACADEMY'S CONFLICT STUDIES RESEARCH CENTER IN SANDHURST SEE RELATED ARTICLE NETWORK OF MOLES WSJ APRIL 5 1994 9404050081 940405 CORRECTIONS & AMPLIFICATIONS THREE FORTIS MONEYMARKET PRODUCTS WERE INCORRECTLY INCLUDED IN THE MUTUAL FUND SCORECARD ON VARIABLEANNUITY FIXEDINCOME BOND FUNDS PRINTED THURSDAY IN THE MONEY & INVESTING SECTION BECAUSE OF A CLASSIFICATION ERROR AT LIPPER ANALYTICAL SERVICES INC THE PRODUCTS LISTED BY MISTAKE WERE THE FORTIS D OPPORTUNITY THE FORTIS D MASTER AND THE FORTIS C WS220 FAMILYFUN PUBLISHED BY WALT DISNEY CO CURRENTLY HAS A RATE BASE OF 600000 SUBSCRIBERS AND NEWSSTAND BUYERS IN YESTERDAY'S ADVERTISING COLUMN THE RATE BASE WAS INCORRECTLY REPORTED AS 400000 A FIGURE THAT DATES TO THE END OF 1993 THE SAME ARTICLE SHOULD HAVE QUOTED FAMILYFUN PUBLISHER KIM MACLEOD AS SAYING THAT ACCORDING TO OUR NATIONAL DISTRIBUTOR FAMILY LIFE'S A RIVAL MAGAZINE FIRST ISSUE SOLD 60000 ISSUES ON NEWSSTANDS COMPARED WITH FAMILY LIFE'S CLAIM THAT IT SOLD 71000 COPIES THE ARTICLE MISTAKENLY SAID MS MACLEOD WAS REFERRING TO FAMILYFUN FAMILY LIFE'S CIRCULATION FIGURES HAVEN'T BEEN AUDITED YET DANIEL YOUNG A FORMER BANK VICE PRESIDENT PLEADED GUILTY IN A NEW YORK STATE COURT TO MISAPPLYING BANK PROPERTY A FELONY A HEADLINE FRIDAY INCORRECTLY SAID HE HAD PLEADED GUILTY TO FRAUD 9404050080 940405 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY LUCINDA HARPER CARGO PILOTS SAY THEY ARE FLYING TIRED AND SEEK TOUGHER SCHEDULE RULES A STUDY BY CIRCADIAN TECHNOLOGIES INC SAYS UNITED PARCEL SERVICE PILOTS FLY UNDER DANGEROUSLY OR SERIOUSLY IMPAIRED CONDITIONS 15 TO 31 OF THE TIME THE COMPANY'S PILOTS UNION BLAMES FLIGHTS THAT INVOLVE SEVERAL TIMEZONE CHANGES AND SCHEDULES THAT FLIPFLOP FROM DAY TO NIGHT UPS PILOTS MEET THIS WEEK WITH MEMBERS OF CONGRESS AND THE CLINTON ADMINISTRATION FEDERAL AVIATION ADMINISTRATION SCHEDULING RULES LAST CHANGED IN 1985 IMPOSE DAILY REST REQUIREMENTS AND LIMIT THE HOURS PILOTS CAN FLY EACH WEEK ROBERT MILLER HEAD OF THE UNION SAYS THEY SHOULD ALSO REQUIRE THAT PILOTS GET THEIR REST AT A SIMILAR TIME EACH DAY UPS TAKES THE STUDY VERY SERIOUSLY SAYS SPOKESMAN MARK DICKENS THE AIREXPRESS INDUSTRY IS SO NEW PERHAPS THE REGULATIONS DON'T ADDRESS EVERYTHING THAT NEEDS TO BE ADDRESSED NASA TESTED AIREXPRESS PILOTS FOR FATIGUE IN 1986 AND 1987 BUT HASN'T PUBLISHED ITS CONCLUSIONS YET FINDING WORKERS MAY SOON BECOME DIFFICULT CAUSING INFLATION TO RISE NONWHITES TEND TO HAVE A HIGHER UNEMPLOYMENT RATE IN THE US THAN WHITES AS A RESULT MR WEINER SAYS AS THE US BECOMES MORE ETHNICALLY DIVERSE THE NATURAL UNEMPLOYMENT RATE IS LIKELY TO RISE STRUCTURAL FACTORS SUCH AS A WIDENING GAP BETWEEN JOB REQUIREMENTS AND WORKER SKILLS AND THE SHIFT FROM MANUFACTURING TO SERVICE JOBS ALSO MAY PLAY A PART ADOPTION COSTS ACTIVISTS WANT MORE EMPLOYERS TO HELP PICK UP THE TAB WENDY'S INTERNATIONAL FOUNDER DAVE THOMAS WHO WAS ADOPTED PROMOTES ADOPTION BENEFITS FOR EMPLOYEES WENDY'S PAYS UP TO 4000 OF ADOPTION COSTS 6000 FOR KIDS WITH SPECIAL NEEDS WALT DISNEY COVERS UP TO 2500 IN ADOPTION EXPENSES HUMANA INC IN LOUISVILLE KY PAYS UP TO 1200 BUT MANY COMPANIES SIMPLY OFFER LEAVE TO TAKE CARE OF NEWLY ADOPTED CHILDREN WENDY'S SAYS 18 OF COMPANIES OFFERED ADOPTION BENEFITS IN 1992 UP 3 FROM 1991 THE AVERAGE COMPANY GAVE 2000 MANY COMPANIES CITING LACK OF EMPLOYEE INTEREST HAVE NO ADOPTION BENEFITS DAVID JONES MANAGER OF EMPLOYEE BENEFITS FOR MCDONNELL DOUGLAS SAYS ADOPTION BENEFITS JUST HAVE NOT LOOMED LARGE IN OUR COMPANY AS AN ISSUE A BILL SPONSORED BY REP JAMES OBERSTAR D MINN AND SEN PAUL SIMON D ILL WOULD REQUIRE BUSINESSES TO PROVIDE THE SAME LEAVE BENEFITS FOR ADOPTIVE AND NATURAL PARENTS LABOR STATISTICS CHIEF KATHARINE ABRAHAM SAYS THE UNEMPLOYMENT RATE COULD RISE THIS SUMMER NOT BECAUSE THE ECONOMY IS SLOWING BUT BECAUSE OF DIFFICULTIES IN APPLYING OLD SEASONALADJUSTMENT FACTORS TO THE NEW WAY OF FIGURING THE JOBLESS RATE GIFT GIVING GOES GLOBAL OVERSEAS CHARITABLE CONTRIBUTIONS BY US COMPANIES SOARED 36 IN 1992 WHILE REMAINING VIRTUALLY FLAT AT HOME THE CONFERENCE BOARD REPORTS US FIRMS GET AN INCREASING SHARE OF THEIR PROFIT ABROAD ENCOURAGING INVOLVEMENT IN THESE COUNTRIES AND COMMUNITIES THE RESEARCH GROUP SAYS JOBHUNT COSTS ARE TAX DEDUCTIBLE SOMETIMES EVEN IF YOU DON'T GET HIRED ANDREW SHERWOOD CHAIRMAN OF GOODRICH & SHERWOOD CO SAYS OUTPLACEMENT AGENCY FEES RESUME COSTS STATIONERY POSTAGE TRANSPORTATION TO INTERVIEWS TELEPHONE CALLS AND PUBLICATIONS BOUGHT FOR THE JOB HUNT ARE ALL DEDUCTIBLE IF YOU HAVE LOST A JOB EXPENSES TO CHANGE CAREERS OR TO GET EMPLOYMENT FOR THE FIRST TIME AREN'T DEDUCTIBLE TRAINING TOP EXECS ACCEPTABLE WHEN THEY WERE SCARCE IS NOW A NONO COMPANIES WANT AN EXECUTIVE TO START ON MONDAY AND DELIVER TO THE BOTTOM LINE ON TUESDAY SAYS ROBERT HORTON CHAIRMAN OF EXECUTIVE SEARCH FIRM HORTON GROUP INTERNATIONAL IN AVON CONN SIDNEY STRICKER JR FOUNDER OF RECRUITING FIRM STRICKER & ZAGOR SAYS THE ATTITUDE IS MORE PRONOUNCED NOW BECAUSE OF PRESSURE FROM GLOBAL COMPETITORS AND THE POPULARITY OF TOTAL QUALITY MANAGEMENT THERE ARE EXCEPTIONS WHERE STRATEGIC LEADERSHIP IS CRITICAL EMPLOYERS ARE MORE WILLING TO HIRE OUTSIDE THEIR OWN INDUSTRIES AND TRAIN EXECS SAYS RALPH DIECKMANN OF CHICAGO'S DIECKMANN & ASSOCIATES LTD BUT MORE OFTEN COMPANIES ARE WILLING TO PAY TOP DOLLAR FOR EXPERIENCE EVEN THOUGH EXPERIENCED EXECS COST 30 TO 50 MORE THAN THOSE WHO NEED TRAINING MOST LIKELY TO HIRE EXPERIENCED WORKERS ARE BANKS INSURANCE COMPANIES HEALTHCARE AND NONPROFIT ORGANIZATIONS ACCORDING TO COOPERS & LYBRAND RECRUITERS SAY HEAVY INDUSTRY IS MORE WILLING TO TRAIN EXECS THE CHECKOFF DID YOU HEAR THE ONE ABOUT THE OLD EMPLOYEE WHO FILED A DISCRIMINATION SUIT SEVERAL DISCHARGED WORKERS HAVE WON DISCRIMINATION SUITS AGAINST FORMER EMPLOYERS CITING JOKES BY SUPERVISORS ABOUT OLD AGE WATCH YOUR STEP SPRAINS STRAINS AND FRACTURES TOPPED THE LIST OF EMERGENCY MEDICAL PROBLEMS FOR TRAVELING EXECS IN 1993 ACCORDING TO A SURVEY BY MEDEX ASSISTANCE CORP 9404050079 940405 IT WAS YANKEES OVER RANGERS 53 ROYAL CROWN OVER COKE 570000 BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL ONLY TWO DAYS INTO THE 1994 BASEBALL SEASON A FRONTRUNNER HAS ALREADY EMERGED FOR THE YEAR'S SORE LOSER AWARD COCACOLA CO THE STORY BEGINS IN EARLY MARCH WHEN THE NEW YORK YANKEES ASKED THREE COMPANIES COKE PEPSICO INC AND ROYAL CROWN COLA CO TO SUBMIT BIDS FOR THE SOFTDRINK CONTRACT AT YANKEE STADIUM FOR THE COMING BASEBALL SEASON COKE HAD HAD THE BUSINESS SINCE 1989 BUT LAST WEEK THE YANKEES PICKED THE ROOKIE ROYAL CROWN AT FIRST ACCORDING TO TEAM OFFICIALS AND ROYAL CROWN COKE TOOK THE LOSS IN STRIDE EVEN AGREEING TO LEAVE ITS SODAFOUNTAIN EQUIPMENT IN PLACE IN YANKEE STADIUM TO ENSURE A SMOOTH TRANSITION FOR ITS SUCCESSOR A DEPARTING SUPPLIER WILL OFTEN SELL OR LEASE ITS FOUNTAIN EQUIPMENT TO A NEW VENDOR THE YANKEES AND ROYAL CROWN ADD BUT LAST THURSDAY AT 4 PM LESS THAN FOUR DAYS BEFORE THE YANKEES' SEASON OPENER WITH THE TEXAS RANGERS AT YANKEE STADIUM COKE TOLD THE TEAM IT WAS REMOVING ALL ITS EQUIPMENT THE NEXT DAY COKE EXHIBITED A VERY IMPUDENT SHORTSIGHTED AND VINDICTIVE ATTITUDE SAYS DAVID SUSSMAN EXECUTIVE VICE PRESIDENT OF THE YANKEES A COKE SPOKESMAN SAYS WE THOUGHT WE HAD A VALID CONTRACT WITH THE YANKEES BUT MR STEINBRENNER THOUGHT DIFFERENTLY GEORGE STEINBRENNER IS THE YANKEES' PRINCIPAL OWNER COKE ADDS THAT IT NEVER PROMISED TO LEAVE ITS EQUIPMENT BEHIND ROYAL CROWN MEANWHILE WAS FACED WITH THE PROSPECT OF TELLING 57000 FANS A SELLOUT THAT YES ROYAL CROWN WAS NOW THE SOFT DRINK OF CHOICE AT YANKEE STADIUM BUT NO YOU CAN'T HAVE ANY ACCORDINGLY THE COMPANY MOUNTED AN OPERATION THAT RESEMBLED THE INVASION OF NORMANDY SAYS MR SUSSMAN IMI CORNELIUS INC A BEVERAGEEQUIPMENT SUPPLIER IN ANOKA MINN SHIPPED ALMOST 20 TONS OF GEAR TO NEW YORK ON TWO CHARTERED PLANES FRIDAY EVENING A SECOND COMPANY CALLED DAY & NIGHT INSTALLATION OUTFITTED 43 CONCESSION STANDS WITH SOFTDRINK TANKS AND DISPENSERS AND RAN 100000 FEET OF SYRUPSUPPLY LINES ROYAL CROWN TRUCKED IN 52000 CANS OF SODA JUST IN CASE THE FOUNTAINS WEREN'T READY AND PRINTED 50000 CUPS FOR THE OCCASION THE EFFORTS PAID OFF AS THE YANKEES WERE BEATING THE RANGERS 53 YESTERDAY ROYAL CROWN HAD ITS FOUNTAIN OPERATION UP AND RUNNING AND A BIG NEW ROYAL CROWN SIGN NOW OVERLOOKS CENTER FIELD ITS SLOGAN SHAKE THINGS UP 9404050078 940405 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ABR INFORMATION SERVICES INC AN INITIAL OFFERING OF 14 MILLION COMMON SHARES AT AN EXPECTED 9 TO 11 A SHARE VIA ROBERT W BAIRD & CO AND RAYMOND JAMES & ASSOCIATES INC BIOPLEXUS INC AN INITIAL OFFERING OF 1333000 COMMON SHARES AT AN EXPECTED 11 TO 13 A SHARE WITH AN OVERALLOTMENT OPTION FOR 199000 ADDITIONAL SHARES VIA ADVEST INC LEVIATHAN GAS PIPELINE PARTNERS LP AN OFFERING OF THREE MILLION PREFERENCE UNITS REPRESENTING LIMITED PARTNER INTERESTS VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AG EDWARDS & SONS INC KIDDER PEABODY & CO SMITH BARNEY SHEARSON INC RAUSCHER PIERCE REFSNES INC AND SANDERS MORRIS MUNDY INC LEVITZ FURNITURE INC'S LEVITZ FURNITURE CORP UNIT AN OFFERING OF 75 MILLION OF ITS SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE 9404050077 940405 LAW LEGAL BEAT COMMERCIALLEASE SIGNERS URGED TO ADJUST FOR US DISABILITIES ACT BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL LAW REQUIRES THAT BUSINESSES MAKE THEMSELVES ACCESSIBLE TO THE DISABLED BUT WHO PAYS FOR MAKING THOSE CHANGES THE ANSWER ISN'T SO SIMPLE ALTHOUGH THE LAW SAYS THAT BOTH THE BUILDING OWNER AND TENANT ARE RESPONSIBLE FOR A BUSINESS'S ACCESSIBILITY IT DOESN'T ADDRESS HOW TO DIVIDE THE COSTS OF MEETING THAT OBLIGATION AS A RESULT LAWYERS ARE URGING LANDLORDS AND TENANTS TO REVISE THEIR COMMERCIAL LEASES TO STATE SPECIFICALLY HOW CLAIMS FILED AGAINST THEM UNDER THE AMERICANS WITH DISABILITIES ACT WILL BE RESOLVED OTHERWISE LAWYERS SAY BOTH RUN THE RISK OF BEING PENALIZED FOR VIOLATIONS OVER WHICH THEY HAVE NO CONTROL TENANTS AND LANDLORDS BOTH WANT TO KNOW IN ADVANCE WHO WILL PAY' AND WHAT'S MY EXPOSURE IF SOMETHING HAPPENS' SAID SUSAN FOWLER MCNALLY A LOS ANGELES REALESTATE ATTORNEY WITH THE LAW FIRM GILCHRIST & RUTTER IN MOST OLDER LEASES IT IS JUST NOT CLEAR INSTALLING ENTRANCE RAMPS ADDING BRAILLE CONTROL PANELS IN AN ELEVATOR MAKING STORE AISLES WIDE ENOUGH FOR WHEELCHAIRS ARE ALL REQUIRED UNDER ADA BUT SPECIFIC LEASE PROVISIONS CAN SAVE TENANTS FROM HAVING TO PAY FOR MODIFYING COMMON AREAS FOR INSTANCE AND CAN LIMIT A LANDLORD'S OBLIGATIONS FOR CORRECTING PROBLEMS WITHIN A TENANT'S STORE OR OFFICE THE ADA WAS PASSED IN 1990 AND ITS ACCESSIBILITY REQUIREMENTS WENT INTO EFFECT IN STAGES OVER THE LAST TWO YEARS ROBERT L DUSTON A MANAGEMENT ATTORNEY AT SCHMELTZER APTAKER & SHEPARD IN WASHINGTON SAID MANY BUSINESSES HAVE NEGLECTED MAKING SUCH CHANGES IN THEIR LEASES BECAUSE TO THEM IT DOESN'T APPEAR AT FIRST GLANCE TO BE A BURNING ISSUE ONLY AFTER A DISABILITIESRIGHTS COMPLAINT IS FILED HE SAID DO THEY REALIZE THAT ADA PROVISIONS IN THE LEASE COULD HAVE LIMITED THEIR EXPOSURE TYPICALLY LAWSUITS FILED OVER ACCESSIBILITY NAME AS DEFENDANTS THE LANDLORD SPECIFIC TENANTS THE BUILDING MANAGER AND SOMETIMES ARCHITECTS WE NAME EVERYBODY SAID SIDNEY WOLINSKY OF DISABILITY RIGHTS ADVOCATES IN OAKLAND CALIF WHICH HAS FILED SEVERAL SUITS ON BEHALF OF DISABLED PEOPLE THEY ARE ALL LIABLE AND WE HAVE NO WAY OF KNOWING WHAT THEIR INTERNAL ARRANGEMENTS ARE FOR DIVIDING THE RESPONSIBILITY THE ADA PROVISIONS IN A LEASE CAN'T STOP A LAWSUIT BUT THEY CAN HELP DEFENDANTS FIGURE OUT HOW TO ALLOCATE THE COSTS OF RESOLVING A DISPUTE REALESTATE LAWYERS AND SOME PLAINTIFF ATTORNEYS SAY THE ARRANGEMENT ALSO CAN INFLUENCE THE OUTCOME OF SETTLEMENT TALKS BY CLARIFYING WHICH OF THE DEFENDANTS AGREED TO MAKE THE AREA ACCESSIBLE BUILDING OWNERS AND MANAGERS ASSOCIATION INTERNATIONAL A WASHINGTON TRADE GROUP ADVISES LANDLORDS THAT THEY ARE LIKELY TO BE DROPPED AS DEFENDANTS IN MANY CASES IF THE LEASE MAKES CLEAR THAT THE PROBLEM WAS THE TENANT'S RESPONSIBILITY THE ADA PROVISIONS IN A LEASE CAN BENEFIT EITHER THE LANDLORD OR THE TENANT ALTHOUGH BUILDING OWNERS GENERALLY HAVE MORE TO LOSE TYPICALLY THE LANDLORD IS THE DEEP POCKET THE VISIBLE PARTY THAT IS GOING TO BE NAMED AS A DEFENDANT SAID EUGENE GRANT A REALESTATE ATTORNEY AT SCHWABE WILLIAMSON & WYATT IN PORTLAND ORE IN SOME LEASES LANDLORDS ARRANGE TO RECOVER FROM TENANTS THE COST OF COMPLYING WITH THE ADA IN OTHERS TENANTS ARE GIVEN A GUARANTEE THAT THE BUILDING IS IN COMPLIANCE THE OWNER AND TENANTS ALSO CAN AGREE NOT TO HOLD EACH OTHER RESPONSIBLE FOR THE COST OF COMPLYING WITH THE LAW IN CERTAIN PARTS OF THE BUILDING MAYER BROWN & PLATT AND TWO ATTORNEYS AT THE CHICAGO LAW FIRM WERE FINED A TOTAL OF 5000 YESTERDAY FOR TRYING TO STEER A CASE TO A FAVORED JUDGE THE LAW FIRM ONE OF CHICAGO'S BEST KNOWN APOLOGIZED TO ITS CLIENT THE CATHOLIC ARCHDIOCESE AND TO OPPOSING LAWYERS LAST WEEK AFTER IT WAS DISCLOSED THAT A PARTNER AND AN ASSOCIATE FILED FIVE IDENTICAL LAWSUITS WITHIN 14 MINUTES THE PLOY WAS AN ATTEMPT TO CIRCUMVENT CHICAGO'S NEW SYSTEM OF RANDOMLY ASSIGNING JUDGES TO CASES AFTER THE FIVE LAWSUITS WERE ASSIGNED TO JUDGES THE LAWYERS CHOSE TO ISSUE SUMMONSES IN ONLY ONE OF THE SUITS A CHANCERY COURT JUDGE ORDERED MAYER BROWN AND THE PARTNER IN THE CASE MICHAEL J GILL EACH TO PAY 2000 OR 500 FOR EACH OF THE FOUR NEEDLESSLY FILED SUITS THE ASSOCIATE WAS ORDERED TO PAY 250 FOR EACH OF THE FOUR SUITS MR GILL TOOK RESPONSIBILITY FOR ORDERING THE EXTRA FILINGS MAYER BROWN WAS REPRESENTING THE ARCHDIOCESE OF CHICAGO IN A SUIT CONTESTING AN ARBITRATION AWARD TO A LOCAL CONTRACTOR THE CASE WHICH WAS ASSIGNED TO A NEW JUDGE YESTERDAY IS STILL PENDING MILO GEYELIN CONTRIBUTED TO THIS COLUMN 9404050076 940405 HOW THE NYMEX CALMED CRISIS OVER MG'S OIL TRADES BY JEFFREY TAYLOR AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL WHEN FIRST REPORTED BY FINANCIAL NEWS WIRES ON DEC 6 THE DISCLOSURE LOOKED MUNDANE METALLGESELLSCHAFT AG A GERMAN ENGINEERING AND METALS CONGLOMERATE SAID IT HAD GREATERTHANANTICIPATED LOSSES DURING THE COLLAPSE OF US OIL PRICES THE PREVIOUS AUTUMN BUT TO R PATRICK THOMPSON PRESIDENT OF THE NEW YORK MERCANTILE EXCHANGE THE WORLD'S LARGEST ENERGY EXCHANGE THE NEWS BLARED RED ALERT MR THOMPSON AND HIS STAFF FOR MONTHS HAD BEEN MONITORING THE NYMEX TRADING OF METALLGESELLSCHAFT'S MAIN US SUBSIDIARY MG CORP READING BETWEEN THE LINES OF THE ANNOUNCEMENT HE SAW THE WORST THE GERMAN COMPANY EMPLOYER OF 58000 PEOPLE ON THREE CONTINENTS MIGHT BE ON THE VERGE OF COLLAPSE I KNEW THEN THAT I HAD TO GET MY HANDS AROUND THIS SITUATION VERY QUICKLY HE SAYS BECAUSE IF SOMETHING HAD TO BE DONE IT HAD TO BE DONE RIGHT AWAY THUS BEGAN AN EXTRAORDINARY CRISISMANAGEMENT PROGRAM THAT REGULATORS NOW CALL A TEST RUN FOR PREVENTING THE TYPE OF CATACLYSM LONG FEARED IN DERIVATIVES MARKETS A MELTDOWN OR CHAIN REACTION OF LOSSES AND DEFAULTS AT COMPANIES AND BANKS THROUGHOUT THE WORLD SOME EXPERTS BELIEVE THAT SUCH A COLLAPSE COULD NOT ONLY CAUSE AN INTERNATIONAL CREDIT CRISIS BUT ALSO SERIOUSLY DAMAGE FINANCIAL MARKETS AND ECONOMIES WORLDWIDE WE WERE AWARE OF THE MAJOR IMPACT THAT A MARKET MROUT OR A BANKRUPTCY DECLARATION COULD HAVE SAYS MR THOMPSON METALLGESELLSCHAFT'S 1 BILLION OF DERIVATIVESRELATED LOSSES LAST YEAR AND ITS 11THHOUR BAILOUT BY 120 EUROPEAN BANKS FOR 195 BILLION HAVE BEEN WIDELY REPORTED BUT DETAILS ARE ONLY NOW EMERGING ABOUT HOW MR THOMPSON AND HIS COLLEAGUES AT THE NYMEX LABORED FOR THREE HARROWING WEEKS TO CONTAIN THE DISASTER EVEN AS BANKS AND PREDATORY TRADERS CLOSED IN ON THE TEETERING COLOSSUS A FEW OF US WERE HOLDING OUR BREATH FOR A WHILE SAYS SHEILA BAIR THEN A MEMBER OF THE COMMODITY FUTURES TRADING COMMISSION THE NYMEX'S REGULATOR WHICH SUPERVISED THE DELICATE PROCESS OF UNWINDING METALLGESELLSCHAFT'S BILLIONS WORTH OF OIL TRADES MR THOMPSON 45 YEARS OLD A RESERVED AND FASTIDIOUS LAWYER AND FORMER FUTURES TRADER WAS WELL AWARE THAT THE GERMAN INDUSTRIAL GIANT HAD HUGE FUTURES CONTRACTS TO PURCHASE CRUDE OIL AT FIXED PRICES THAT WERE FAR ABOVE PREVAILING MARKET LEVELS THESE DERIVATIVES POSITIONS INDICATED LOSSES OF AT LEAST HUNDREDS OF MILLIONS OF DOLLARS FOR METALLGESELLSCHAFT FOLLOWING THE AUTUMN PRICE ROUT ON THE NYMEX ALONE MG CORP THE COMPANY'S MAIN US UNIT HAD ABOUT 55000 CONTRACTS OUTSTANDING THE EQUIVALENT OF 55 MILLION BARRELS OF OIL PEOPLE FAMILIAR WITH THE TRADES SAY THAT WAS MORE THAN TWICE NYMEX'S NORMAL 24000CONTRACT LIMIT THANKS TO A HEDGING EXEMPTION OBTAINED EARLIER BY MG AS A DISTRIBUTOR OF GASOLINE AND OTHER OIL PRODUCTS MG WAS USING THE CONTRACTS TO HEDGE ITS COMMITMENTS TO SUPPLY PETROLEUM PRODUCTS TO SERVICE STATIONS AND OTHER BUYERS THROUGHOUT THE US BUT THAT WASN'T THE WORST OF IT NYMEX STAFFERS TOLD THE CFTC THAT MG ALSO HAD HUGE LOSING POSITIONS IN OFFEXCHANGE OIL DERIVATIVES IN FACT MG'S TOTAL COMMITMENTS AMOUNTED TO 160 MILLION BARRELS OF OIL ABOUT 80 TIMES THE DAILY OUTPUT OF KUWAIT EXPOSURES OF THIS SIZE FORCED THE NYMEX AND THE CFTC TO CONCLUDE THAT THE LOSSES MIGHT BE BIGGER THAN EVEN THE PARENT METALLGESELLSCHAFT GERMANY'S 14TH LARGEST CORPORATION COULD WITHSTAND SAYS ANDREA CORCORAN CFTC DIRECTOR OF TRADING AND MARKETS WHAT WE WERE WORKING WITH WAS AN UNCERTAINTY ABOUT WHETHER THEY WOULD BE ABLE TO RESTRUCTURE THEIR DEBT AND PAY THEIR DERIVATIVES OBLIGATIONS DERIVATIVES ARE FINANCIAL ARRANGEMENTS DESIGNED TO TRACK THE PRICE OF AN UNDERLYING ASSET IN THIS CASE CRUDE OIL EXCHANGETRADED FUTURES AND OPTIONS CONTRACTS ARE COMMON TYPES OF DERIVATIVES BY CONTRAST OFFEXCHANGE DERIVATIVES ARE CUSTOMMADE PRIVATELY TRADED AND FOR THE MOST PART BEYOND REGULATORS' REACH FEDERAL WATCHDOGS INCLUDING THE FEDERAL RESERVE BOARD THE OFFICE OF THE COMPTROLLER OF THE CURRENCY AND THE SECURITIES AND EXCHANGE COMMISSION WERE KEEPING AN EYE ON METALLGESELLSCHAFT'S OFFEXCHANGE TRADES HOWEVER THEY HAD LITTLE POWER TO INTERVENE AND THUS COULD ONLY WATCH AS THE DRAMA UNFOLDED AND THAT LEFT THE NYMEX AND THE CFTC AS THE FIRST AND MAYBE ONLY LINE OF REGULATORY DEFENSE AGAINST THE CRISIS INDEED ONE OF THE LESSONS OF THE DEBACLE IS HOW HELPLESS REGULATORS MAY BE TO MANAGE AN OFFEXCHANGE DERIVATIVES EMERGENCY ALL REGULATORS ARE TRYING TO CATCH UP WITH THE EXPLOSIVE GROWTH OF THESE GLOBAL MARKETS SAYS RICHARD ROBERTS AN SEC COMMISSIONER MR THOMPSON'S FIRST PRIORITY WAS TO PRESERVE THE SOLVENCY AND SMOOTH FUNCTIONING OF THE NYMEX'S CLEARING MECHANISM WHICH GUARANTEES PAYMENT OF TRADERS' FUTURES OBLIGATIONS UNDER CFTC SUPERVISION THE NYMEX TOOK STEPS TO QUARANTINE METALLGESELLSCHAFT'S TRADING OPERATION FIRST THE EXCHANGE STAFF FORCED MG CORP TO TRANSFER ITS FUTURES POSITIONS TO FINANCIALLY HEALTHY FUTURES BROKERS IT ALSO DEMANDED THAT MG POST UNPRECEDENTED AMOUNTS OF COLLATERAL AGAINST POTENTIAL LOSSES ON THOSE TRADES 2 1/2 TIMES THE LEVELS ORDINARILY REQUIRED THOSE CASH GUARANTEES QUICKLY EXHAUSTED A 500 MILLION EMERGENCY LINE OF CREDIT THAT MG HAD ON HAND FROM ITS EUROPEAN BANKERS NEXT NYMEX EXECUTIVES AGREED THAT MG'S FUTURES HOLDINGS NEEDED TO BE DRASTICALLY REDUCED THE EXCHANGE REVOKED MG'S HEDGING EXEMPTION AND ORDERED THE FIRM TO REDUCE ITS CONTRACTS BELOW THE NORMAL 24000CONTRACT LIMIT IN FORCING THAT SELLOFF THE OFFICIALS WERE TREADING A THIN LINE LIQUIDATING TOO QUICKLY MIGHT DEPRESS OIL PRICES WORSENING METALLGESELLSCHAFT'S LOSSES AND HURTING OTHER ENERGY BUSINESSES WORLDWIDE BUT LIQUIDATING TOO SLOWLY MIGHT ALLOW MG TO SLIP INTO BANKRUPTCY PROCEEDINGS AND DEFAULT ON ITS DERIVATIVES OBLIGATIONS ABOVE ALL MG'S TRADES HAD TO BE UNWOUND WITH UTMOST SECRECY NO EASY FEAT IN FUTURES MARKETS WHERE GOSSIP IS A TOOL OF THE TRADE IF SPECULATORS ON THE NYMEX FLOOR GOT WIND OF THE PLAN THEY WOULD BET AGAINST IT MAKING ITS EXECUTION EVEN MORE DISRUPTIVE AND COSTLY THERE WERE OTHER COMPLICATIONS BY MIDDECEMBER HEADS WERE ROLLING AT MG AND METALLGESELLSCHAFT RAISING DOUBTS ABOUT WHO WAS IN CHARGE AT LAST A SUPERVISORY BOARD OF SHAREHOLDERS IN FRANKFURT HEADED BY DEUTSCHE BANK STEPPED IN THE BOARD DISPATCHED KARL VON DER HEYDEN A FORMER RJR NABISCO EXECUTIVE TO RUN MG CORP AND ASKED NANCY KROPP GALDY A RECENTLY RETIRED OILTRADING WHIZ AT MORGAN STANLEY & CO TO MANAGE THE LIQUIDATION EFFORT BUT ON DEC 21 JUST A DAY AFTER MR VON DER HEYDEN TOOK OVER THE NYMEX AND THE CFTC GOT ANOTHER SCARE FOUR EUROPEAN BANKS WORRIED BY PUBLICITY ABOUT THE PARENT COMPANY'S PROBLEMS DEMANDED THAT MG PAY OFF MILLIONS OF DOLLARS OF LOANS OUTSTANDING RATHER THAN ROLLING OVER THOSE CREDIT LINES AS USUAL IN EFFECT THAT FORCED MG TO DECIDE WHICH TO STIFF THE BANKS OR THE DERIVATIVES MARKETS THE COMPANY CHOSE TO DEFAULT ON THE LOANS OTHERWISE NO ONE WOULD EVER TRADE WITH US AGAIN SAYS MR VON DER HEYDEN THE BANKERS AGREED TO STAND STILL HE ADDS GIVING THE COMPANY TIME TO REORGANIZE ITSELF IN THE LAST HALF OF DECEMBER MS KROPP GALDY AND HER STAFF WERE CAREFULLY SELLING NYMEX OIL FUTURES CONTRACTS AT A RATE OF 500 TO 1500 A DAY WE WANTED TO LIQUIDATE AS SLOWLY AND CALMLY AS POSSIBLE MS KROPP GALDY SAYS NO FIRE SALES THEY ALSO CUT THE COMPANY'S OFFEXCHANGE EXPOSURE WHICH WAS HARDER BOTH BECAUSE THE POSITIONS WERE MORE COMPLEX AND BECAUSE OFFEXCHANGE MARKETS ARE CONSIDERABLY THINNER THAN THE NYMEX OIL MARKET BY EARLY JANUARY MG SEEMED TO BE OUT OF THE WOODS WE WERE FEELING COMFORTABLE THAT THE DAMAGE HAD BEEN CONTAINED SAYS THE NYMEX'S MR THOMPSON THE BANK BAILOUT PACKAGE ANNOUNCED LATER THAT MONTH EFFECTIVELY ENDED THE CRISIS COULD THE CRISIS HAVE BEEN MANAGED BETTER W ARTHUR BENSON WHO RAN MG'S OILTRADING OPERATION UNTIL THE GERMAN SHAREHOLDER GROUP SEIZED CONTROL IN DECEMBER ALLEGES THAT THE PANICKY LIQUIDATIONS CAUSED RATHER THAN STEMMED THE LOSSES MR BENSON WAS FIRED IN FEBRUARY AND HAS FILED A LAWSUIT IN BALTIMORE'S US DISTRICT COURT CHARGING THAT METALLGESELLSCHAFT AND DEUTSCHE BANK DEFAMED HIM BY BLAMING HIM FOR THE LOSSES BUT MR BENSON HAD A CONTROVERSIAL TRADING HISTORY EVEN BEFORE ARRIVING AT MG CORP IN AN UNRELATED 1987 LAWSUIT IN THE SAME US DISTRICT COURT MR BENSON'S OWN LAWYER DEFENDED HIM ON THE GROUNDS THAT HE WAS A MERCAHOLIC WHO WAS DEMENTED BY AN ADDICTION TO OILFUTURES TRADING DOCUMENTS IN THAT CASE SAY MR BENSON'S CURRENT ATTORNEY SAYS THAT SUIT CONCERNED TRADES THAT OCCURRED IN 1982 AND THAT MR BENSON HAS LONG SINCE MENDED HIS WAYS IN A WRITTEN STATEMENT THE LAWYER ADDS THAT MR BENSON LOOKED INTO THE ABYSS OF WHAT RAMPANT SPECULATION CAN DO TO A PERSON'S LIFE AND HE VOWED HE WOULD NEVER DO IT AGAIN MR BENSON DECLINED TO BE INTERVIEWED MEANWHILE US CONGRESSIONAL INVESTIGATORS ARE STUDYING THE METALLGESELLSCHAFT CASE AS PART OF THEIR INQUIRY INTO OFFEXCHANGE DERIVATIVES REP JAMES LEACH R IOWA HAS INTRODUCED LEGISLATION TO BOLSTER REGULATION OF SUCH MARKETS MR THOMPSON FOR ONE FAVORS MORE CONTROLS ON PRIVATE DERIVATIVES DEALERS WHO EFFECTIVELY COMPETE WITH THE NYMEX WE DO BELIEVE THAT SOME SORT OF STANDARDS SHOULD BE SET FOR APPROPRIATE HEDGING TECHNIQUES AND PROPER CAPITALIZATION OF FIRMS HE SAYS SHEILA BAIR FORMER ACTING CHAIRMAN OF THE COMMODITY FUTURES TRADING COMMISSION IS STILL A CFTC MEMBER AN ARTICLE TUESDAY ABOUT METALLGESELLSCHAFT AG'S MAIN US UNIT MG CORP IMPLIED THAT SHE WAS NO LONGER A MEMBER OF THE COMMISSION 9404050075 940405 BUSINESS WORLD A SUDDEN CHALLENGE TO PETE WILSON BY TIM W FERGUSON PALO ALTO CALIF IT WAS APRIL FOOL'S DAY BUT HIGHTECH ENTREPRENEUR RON K UNZ WAS ENTIRELY SERIOUS HE WAS EXPLAINING WHY THIS WEEK HE'LL BEGIN A SURPRISE LIGHTNING BID TO DENY THE REPUBLICAN RENOMINATION TO GOV PETE WILSON ARGUABLY THE SECOND MOST POWERFUL ELECTED OFFICIAL IN THE LAND POLITICS HAS BEEN MR UNZ'S INTELLECTUAL HOBBY FUNDING THINK TANKS OR THE ELECTORAL AMBITIONS OF OTHERS SUDDENLY HE SAID THE MOMENT WAS HIS TO SEIZE FACED WITH A SITUATION WHERE YOU HAVE AN INCREDIBLY UNPOPULAR GOVERNOR OF CALIFORNIA UNPOPULAR IN HIS OWN PARTY AND UNPOPULAR IN THE STATE WITH NO GOP CHALLENGER FACING HIM AND WITH POLLING DATA INDICATING THAT SOMEONE OF MY BACKGROUND AND MY VIEWS WOULD HAVE A VERY REASONABLE CHANCE OF WINNING IT'S REALLY THE OPPORTUNITY OF A LIFETIME SUCH IS THE BRASHNESS OF SILICON VALLEY WHERE MR UNZ MOVED HIS SOFTWARE FIRM WALL STREET ANALYTICS FROM NEW YORK TWO YEARS AGO IT SELLS TO INVESTMENT BANKS AND BROKERAGE HOUSES A TOOL FOR DESIGNING AND PRICING REMICS THE MORTGAGE INSTRUMENT THAT EXPLODED IN THE 1980S FOR MR UNZ'S COMPANY THAT MEANS YEARLY PROFITS IN THE SEVEN FIGURES AND FOR HIM THE ABILITY TO SINK 1 MILLIONPLUS INTO MEDIA OVER THE NEXT FEW WEEKS TO BUILD CREDIBILITY FOR A PRIMARY ELECTION JUST TWO MONTHS AWAY IT'S A LONG SHOT BUT MORE A ROLL OF THE DICE RATHER THAN ONE IN A MILLION OR ONE IN A HUNDRED HE SAID THE PEROT PHENOMENON AND THE COLLAPSE OF RULING PARTIES IN CANADA AND ITALY EMBOLDEN MR UNZ HIS EFFORT IS A POTENTIAL DISASTER FOR MR WILSON WHO WAS COUNTING HIS GOP CHICKENS IN PREPARATION FOR THE FALL LEG OF A STORYBOOK COMEBACK TURNS OUT HIS ADMINISTRATION NEVER GOT SQUARE WITH THE REAGANITE MOVEMENT IN THE PARTY FOR MONTHS ACTIVISTS ON THE RIGHT SOUGHT RECOGNIZABLE FIGURES TO LEAD A CHALLENGE TO THE GOVERNOR WHOSE HARDLINE RHETORIC AGAINST STREET CRIME AND ILLEGAL IMMIGRATION HAS NOT REDEEMED HIM FOR RAISING TAXES AND OTHERWISE FACILITATING BIG GOVERNMENT EVEN AS THEIR EFFORTS APPEARED TO FAIL MR UNZ WAS PLOTTING AN AMBUSH WITH ARNOLD STEINBERG A REPUBLICAN POLLSTER AND STRATEGIST GOING BACK TO JAMES BUCKLEY'S 1970 SENATE VICTORY ON THE CONSERVATIVE LINE IN NEW YORK LORELEI KINDER NATIONAL POLITICAL COORDINATOR FOR REAGANBUSH IN 1980 FORMALLY HEADS MR UNZ'S DRIVE BUT WITH FEW PROMINENT REPUBLICANS LIKELY TO RISK THE IRE OF A STILLPOWERFUL GOVERNOR THE CAMPAIGN'S ESSENCE WILL BE TV AND RADIO SPOTS HIGHLIGHTING MR UNZ'S OWN PERSONA AND VIEWS THE INITIAL BUY MATCHES MICHAEL HUFFINGTON'S INTRODUCTION OF HIS US SENATE BID DURING THE WINTER OLYMPICS THE AIM IS TO PROJECT SERIOUSNESS TO CONTRAST A CANDIDATE SINCERE ABOUT IDEAS WITH A GOVERNOR WHO IS REACTIVE OPPORTUNISTIC AND ULTIMATELY INEFFECTUAL ALSO THE PROJECT PITS A SCHOOLTEACHER'S SON FROM THE SAN FERNANDO VALLEY WHO ACHIEVED STUNNING BUSINESS SUCCESS AGAINST A PREPSCHOOLER THOUGH LATER A MARINE WHO'S BEEN IN GOVERNMENT FOR NEARLY 30 YEARS WHO THEN IS THIS GUY UNZ AND WHAT DOES HE BELIEVE HIS BASIC PROFILE 32 YEARS OLD SINGLE AND JEWISH ISN'T TAILORMADE FOR A GOP PRIMARY NEITHER PERHAPS IS THE HARVARDCAMBRIDGESTANFORD ROUTE HE WAS TAKING IN THEORETICAL PHYSICS UNTIL A SUMMER AT FIRST BOSTON PERSUADED HIM TO ABANDON A PHD IN FAVOR OF COMPUTERIZED FINANCE WITH THREE FELLOW ROCKET SCIENTISTS TWO OF THEM ACTUALLY WORKED AT NASA HE HAS THE COMPANY IN ORBIT JUST SIX YEARS AFTER BLASTOFF WALL STREET ANALYTICS EPITOMIZES THE VIRTUAL CORPORATION ITS ADDRESS IS A MAIL DROP THE PRINCIPALS WORK FROM THEIR HOMES IN SILICON VALLEY THE UNZ CAMPAIGN BOWING TO TRADITION HAS SET UP HEADQUARTERS IN BURBANK MR UNZ'S LARGE NEW HOUSE IN EXPENSIVE PALO ALTO IS HIS ONLY APPARENT ACCOMMODATION TO WEALTH ITS PRIMARY FURNISHINGS ARE COMPUTERS AND TELEPHONE EQUIPMENT HE DRIVES A SMALL CAR AND CHOSE A BASIC PASTA PLACE FOR A DINNER CHAT WHAT HE OBVIOUSLY WILL SPEND MONEY ON IS PUBLIC POLICY STARTING IN THE 1980S HE READ THOMAS SOWELL AND DREW FROM NEOLIBERALISM IN THE NEW REPUBLIC NEOCONSERVATISM IN COMMENTARY AND FUNCTIONAL LIBERTARIANISM IN THE ECONOMIST TODAY HE BACKS LINDA CHAVEZ'S WORK FOR THE MANHATTAN INSTITUTE AND DAVID HOROWITZ'S CULTURAL CRITICISM OUT OF LOS ANGELES THUS IT'S NO SURPRISE THAT AFTER ECONOMIC GROWTH HIS PLATFORM STRESSES CHANGING SOCIALWELFARE POLICY AND FIGHTING INSTITUTIONALIZED BILINGUALISM MULTICULTURALISM AND QUOTAS HIS FISCAL RECIPE NOT YET SPECIFIC IS TO LANCE THE SPENDING BOIL BY OFFERING MASSIVE TAX CUTS IN RETURN FOR MODEST REDUCTIONS IN WHAT MOST PEOPLE GET FROM THE PUBLIC SECTOR VOUCHERS AND COMPETITIVE CONTRACTING WOULD MINIMIZE CUTS IN SERVICES BY BOOSTING PRODUCTIVITY SCHOOLS ARE AT THE TOP OF THE LIST UNZ CAMPAIGNERS ARE BITTER AT GOV WILSON'S OPPOSITION TO THE SCHOOLCHOICE INITIATIVE LAST NOVEMBER AND OTHER ASSUAGING OF THE BIGGEST BULLY OF STATE POLITICS THE TEACHERS' UNIONS WHERE HEIGHTENED CRIME FEARS LEAD MR WILSON TO DEMAND A WIDER DEATH PENALTY AND EXPENSIVE PRISON BEDS MR UNZ'S OWN LAWN'ORDER STANCE KEEPS ONE EYE ON PATHOLOGIES BRED BY HANDOUTS HE FEARS AMERICAN SOCIETY'S LOSS OF MOORINGS IS OVERWHELMING THE PROMISE OFFERED BY ITS TECHNOLOGY UNLIKE THE GOVERNOR WHO EARLY IN HIS TERM PROPOSED NEW PREVENTIVE PROGRAMS TO DEAL WITH ANTISOCIAL YOUTH MR UNZ WANTS TO REDUCE THE PANOPLY OF BENEFITS THAT'S WHY THE IMMIGRATION ISSUE IS IN SOME WAYS SO USEFUL HE SAID BROACHING A REDHOT TOPIC IT FORCES PEOPLE TO COME TO TERMS WITH THE CONSEQUENCES OF THE SOCIAL WELFARE STATE IN A WAY THAT THEY MIGHT OTHERWISE HAVE BEEN RELUCTANT TO DO GOV WILSON CITES DEMAND ON THE PUBLIC SECTOR AS A REASON FOR ATTACKING UNDOCUMENTED ENTRIES WHILE MR UNZ TURNS THAT AROUND USING THE NEWCOMER LOAD AS A REASON TO QUESTION OVERALL LARGESS TAXPAID BENEFICENCE HE SAID THREATENS THE HISTORIC OPENNESS AND OPPORTUNITY OF CALIFORNIA FORMATIVE FOR MR UNZ WERE THE FIVE YEARS HE LIVED IN JACKSON HEIGHTS QUEENS THIS IMMIGRANT BASTION THOUGH WITNESS TO VIOLENCE OVER CRIMINALIZED DRUGS HAD A SOCIAL FABRIC THAT IS A MODEL FOR URBAN AMERICA IMMIGRATION ALSO CALLS ATTENTION TO ETHNIC SEPARATISM MR UNZ SAID CONTINUED BALKANIZATION OF THE US AND THE EXTENSION OF PREFERENTIAL TREATMENT WILL ENCOURAGE SPOILS POLITICS THAT FEEDS ON DIVISION IF ASSIMILATED HE SAID ASIAN AND HISPANIC CULTURES ARE NATURAL CONSTITUENCIES FOR THE GOP'S FREEMARKET CONSERVATISM ELECTION CAMPAIGNS INVOLVE MORE THAN IDEAS OF COURSE AND THIS IS A HIGHLY SPECULATIVE ONE MR UNZ HASN'T GIVEN A POLITICAL SPEECH SINCE HIGH SCHOOL BUT IF HIS EFFORT DOESN'T SIMPLY BLAME EVERY ILL OF CALIFORNIA ON PETE WILSON AND INSTEAD FORCES THE GOVERNOR AND HIS PARTY TO ENGAGE ON THE ESSENTIAL QUESTIONS THEN THIS ROLL OF THE DICE CAN HAVE A REAL PAYOFF 9404050073 940405 LEISURE & ARTS OPERA SEATTLE OPERA BRINGS OUT THE BEST IN BRITTEN BY DAVID SCHIFF SEATTLE DO YOU BELIEVE IN GHOSTS IN FREUD IN MAGIC MOST DISCUSSIONS OF BENJAMIN BRITTEN'S OPERA THE TURN OF THE SCREW AND OF THE HENRY JAMES NOVELLA IT IS BASED ON TURN ON THE FIRST TWO ALTERNATIVES ARE THE GHOSTS REAL IS THE GOVERNESS A SEXUALLY REPRESSED HYSTERIC DO WE CARE SEATTLE OPERA'S RECENT PRODUCTION PUSHED BRITTEN'S DIABOLICALLY CLEVER SCORE WAY BEYOND THESE TIRED NONISSUES INTO AN UNCANNY EVENING OF TOTAL THEATER PROVING THAT THIS CONCISE CHAMBER OPERA CAN PACK A WALLOP EQUAL TO THE MIGHTIEST GESAMTKUNSTWERK DIRECTOR MARK LAMOS AND SET DESIGNER JOHN CONKLIN AND LIGHTING DIRECTOR ROBERT WIERZEL WHO DEVELOPED THE PRODUCTION FOR THE GLIMMERGLASS OPERA PLACE THE ACTION IN THE FAMILIAR DREAM WORLD OF THE MOVIES AT TIMES WE SEEMED TO BE GETTING A CRASH COURSE IN MOVIE HISTORY THE PROLOGUE BEGINS AS A SHADOW PLAY WITH HUGE SHADOWS CAST AGAINST THE CURTAIN BY A SINGLE HARSH LIGHT AND THE FIRST SCENE TRAPS THE APPROACHING GOVERNESS IN A CROSSFIRE OF FLICKERING LIGHTS SHE LOOKED LIKE A DEMENTED LILLIAN GISH AS THE FLICKERS ILLUMINATED HER NERVOUS TICS THE SLANTED PEELING PLASTER FLATS THAT FRAME THE SET RECALLED THE EARLY HORROR FILM THE CABINET OF DR CALIGARI THE STAGE MIRRORS AND SURREAL PROPS WERE PURE COCTEAU THE COSTUMES WERE AT FIRST VAGUELY EDWARDIAN BUT AS SEXUAL PANIC BEGAN TO RISE BOTH THE GOVERNESS AND MISS JESSEL APPEARED IN STRAPLESS EVENING GOWNS STRAIGHT OUT OF ALL ABOUT EVE THERE ARE 16 SHORT SCENES IN THE OPERA AND EACH TIME THE CURTAIN ROSE IT REVEALED A DIFFERENT SCENIC REBUS A NEW ARRANGEMENT OF BLACK AND WHITE A SIXFOOT OWL A MAGENTA SASH A MENACINGLY PHALLIC FLOOR LAMP CHRISTMAS LIGHTS BUT NO TREE THE COMMON THREAD WAS EXPRESSIONISM IN VARIOUS GUISES FROM VIENNESE ANGST TO HOLLYWOOD CAMP THE GOVERNESS FIRST CONFRONTS THE SINISTER PETER QUINT AS THEIR SHADOWS EMBRACE BUT HER EXTENDED FANTASY OF THE TWO GHOSTS TAKES PLACE ON A STAGE COVERED WITH THE TRAIN OF HER JEZEBEL RED EVENING GOWN THE GHOSTS SANG OF THE LOSS OF INNOCENCE WHILE A SQUARE ABOVE THEM WAS FILLED WITH HUGE MAX FACTOR LIPS THESE MOMENTS OF CAMP DID NOT LESSEN THE HORROR OF THE STORY AT ALL BUT FURTHER UNHINGED THE AUDIENCE'S SENSE OF CONTROL JAMES'S STORY IS BOTH DEEPLY SILLY AND WILDLY OVERDETERMINED THIS PRODUCTION THOUGH IT PLACED THE GOVERNESS AT THE CENTER OPENED UP THE INTERPRETIVE POSSIBILITIES OF THE STORY INSTEAD OF REDUCING IT TO A SINGLE SET OF PSYCHOLOGIC PLATITUDES THE '50S FASHIONS PLACED THE PSYCHOLOGICAL INTERPRETATION OF THE STORY IN ITS HISTORICAL CONTEXT OF MIDCENTURY FREUDIANISM AS IN TENNESSEE WILLIAMS WE SEE A SEXSTARVED MOTHER DESTROYING HER SON IE MAKING HIM HOMOSEXUAL BUT WE ARE NOT LET OFF THAT EASY THE GOVERNESS MAY BE CRAZY BUT THE GHOSTS MAY BE REAL AS WELL THEY SEEMED TO BE HER FANTASY BUT THEY COULD JUST AS WELL BELONG TO MILES A BOY ON THE VERGE OF PUBERTY STRUGGLING TO ENTER MANHOOD THE GHOSTS OF THE DEAD VALET AND GOVERNESS MIGHT NOT BE NEUROTIC FANTASIES AT ALL BUT TRAUMATIC MEMORIES OF THE EVIL VISITED ON THE CHILDREN BY TWO FORMER SERVANTS BRITTEN'S MUSIC CAPTURES JAMES'S PERVERSE CLEVERNESS THROUGH THE ENDLESS INVENTIVENESS OF ITS ORCHESTRATION THE 13PIECE ORCHESTRA GIVES EACH MOMENT OF HORROR AN INDELIBLE ORCHESTRAL COLORING UNDER CONDUCTOR RICHARD BRADSHAW MEMBERS OF THE SEATTLE SYMPHONY ROSE TO THE VIRTUOSIC CHALLENGES OF THE MUSIC WITH A RHYTHMIC DRIVE NOT HEARD ON ANY RECORDING AS IN MANY BRITTEN OPERAS THE KIDS GET ALL THE TUNES WHILE THE ADULTS HAVE TO SING ON REPEATED NOTES OR UP AND DOWN SCALES HERE THE SCALES AT LEAST TAKE DEVILISH TWISTS AND TURNS BUT ONLY STRONG SINGERS CAN PUMP LIFE INTO THESE SCHEMATIC THEMES THE SEATTLE CAST A HIGHLY DISCIPLINED ACTING ENSEMBLE IMBUED THEM WITH REAL TERROR SOPRANO LAUREN FLANIGAN ORIGINATED THE ROLE OF THE GOVERNESS AT GLIMMERGLASS AND HAD A STRONG HAND IN DEVELOPING THE CONCEPT OF THIS PRODUCTION SHE DOMINATED THE STAGE FOR THE ENTIRE OPERA WITH THE NERVOUS INTENSITY OF HER CHARACTERIZATION AND THE POWER OF HER DRAMATIC SOPRANO VOICE SOMEHOW SHE MANAGED TO SING BEAUTIFULLY WHILE TWISTING HER BODY IN CONSTANT MINISPASMS AT THE VERY CLOSE OF THE OPERA SHE BROKE THROUGH BRITTEN'S BRITISH RESERVE FOR A PULLOUTTHESTOPS PUCCINIAN CLIMAX PETER KAZARAS'S BIG TENOR EASILY RANGED FROM THE WORLDLY CHARM OF THE PROLOGUE TO THE OTHERWORLDLY EVIL OF THE SCENE WHERE HE MAKES MILES STEAL THE GOVERNESS'S LETTER IN HIS FORMAL DINNER JACKET HE SEEMED LESS OBVIOUSLY VILLAINOUS THAN GLAMOROUSLY SEDUCTIVE JOYCE CASTLE'S DARK MEZZO GAVE THE OLD HOUSEKEEPER MRS GROSE A SINISTER NAIVETE LINDA PAVELKA'S INTENSELY SUNG SPIKEHAIRED MISS JESSEL WAS MORE A SYMPATHETIC VICTIM THAN A GHOULISH WRAITH THE HAUNTED CHILDREN HAPPILY DECLINING OBSCENE LATIN NOUNS WERE PROPERLY DEMONIC CHRISTOPHER CAMPBELL'S MILES DOUBLECAST WITH FRASER WALTERS TOOK THE VOCAL AND DRAMATIC DEMANDS OF THE ROLE IN HIS STRIDE CYNDIA SIEDEN'S FLORA SCARILY PROGRESSED FROM HAPPY GIRLHOOD TO EARLY DEMENTIA BEFORE OUR EYES BEFORE THE OPERA SPEIGHT JENKINS GENERAL DIRECTOR OF THE SEATTLE OPERA INVITED THE AUDIENCE TO JOIN HIM AND THE CAST FOR A POSTPERFORMANCE DISCUSSION AS EVIDENCE OF THE GREAT STRIDES MR JENKINS HAS MADE IN RAISING OPERATIC CONSCIOUSNESS IN THE NORTHWEST SEVERAL HUNDRED AUDIENCE MEMBERS STAYED ON FOR AN HOUR AFTER THE SHOW WHICH WAS AFTER ALL AN UNFAMILIAR MODERN OPERA IN ENGLISH TO TRY TO COME TO TERMS WITH ITS EMOTIONAL IMPACT MR JENKINS CALLED IT A DEBRIEFING MAESTRO BRADSHAW AND THE CAST SHARED THEIR OWN FEELINGS ABOUT THE WORK WITH THE AUDIENCE AS IF THEY ALL HAD BEEN POSSESSED BY POWERFUL SPIRITS THEY HAD AS IT HAS IN MANY OF ITS PREVIOUS PRODUCTIONS SEATTLE OPERA DEMONSTRATED HOW OPERA CAN BE MUCH MORE THAN THE SUM OF ITS USUALLY DISCONNECTED PARTS WHEN PRODUCED AS A TEAM EFFORT OPERA CAN BE THE MOST MAGICAL NOT TO SAY SCARY FORM OF CONTEMPORARY THEATER MR SCHIFF IS A FACULTY COMPOSER AT REED COLLEGE IN PORTLAND ORE 9404050072 940405 NETWORK OF MOLES BY CHARLES DICK MANY IN THE WEST WILL BE SURPRISED BY THE REVELATIONS CONCERNING CONTINUED RUSSIAN ESPIONAGE IN THE US THEY SHOULD NOT BE IT IS NATURAL AS ALEXIS DE TOCQUEVILLE NOTED IN L'ANCIEN REGIME THAT PEOPLE WHO RUN AFFAIRS AFTER A REVOLUTION TEND TO PERSIST IN THE HABITS OF THOUGHT AND PRESCRIPTIONS FOR SOLVING PROBLEMS THAT OBTAINED BEFORE THE REVOLUTION SO IT WAS WHEN THE BOLSHEVIKS CAME TO POWER IN 1917 SO IT IS IN RUSSIA TODAY WESTERNERS GENERALLY BELIEVE THAT THE TOP ECHELONS IN RUSSIA HAVE ACCEPTED THE VERDICT PASSED ON SOVIET COMMUNISM AS A RESULT OF DEFEAT IN THE COLD WAR AND ECONOMIC COLLAPSE AT HOME AND THAT THE LEADERSHIP IN THE KREMLIN HAS NOW BECOME CONVERTED TO WESTERN IDEAS OF DEMOCRACY MARKET REFORM AND THE NEED TO LET THE OLD EMPIRE GO UNFORTUNATELY SUCH WESTERN BELIEFS ARE SOMEWHAT PREMATURE THE NEW RUSSIAN GOVERNMENT'S ECONOMIC REFORM CREDENTIALS ARE TO SAY THE LEAST SUSPECT AND OVER THE PAST YEAR THERE HAS BEEN GROWING INTERFERENCE IN THE SOCALLED NEAR ABROAD PLAINLY THERE IS NO GENERAL ACCEPTANCE OF THE LOSS OF EMPIRE AND NO AMOUNT OF EFFORT TO DISGUISE THIS INTERFERENCE AS PEACEKEEPING CAN DISGUISE THE FACT TO MANY PEOPLE IN THE FORMALLY INDEPENDENT STATES OF GEORGIA AZERBAIJAN MOLDOVA AND TAJIKISTAN PEACEKEEPING LOOKS SUSPICIOUSLY LIKE INTERVENTION AND MOSCOW IS NOW TRYING TO INSTITUTIONALIZE THE PRESENCE OF RUSSIAN SOLDIERS IN THESE AND OTHER COUNTRIES MOREOVER EVEN IF THE SINNERS GENUINELY HAVE REPENTED AT THE VERY TOP THE VAST MAJORITY OF THE SENIOR POSTS IN THE COUNTRY'S ADMINISTRATION ARMED FORCES AND SECURITY SERVICES ARE STILL FILLED BY MEMBERS OF THE OLD ORDER THE MENTALITY OF HOMO SOVIETICUS IS STILL ALIVE AND WELL AND DIRECTING AFFAIRS MOST GENERALS WHETHER IN THE ARMY OR THE SECURITY MINISTRY THE FORMER KGB ARE NOT RECONCILED TO THE BREAKUP OF GREATER RUSSIA AND MOST DO NOT IN THEIR HEARTS ACCEPT THAT THE US AND NATO ARE NO LONGER ENEMIES THE END OF THE COLD WAR MAY HAVE REMOVED IDEOLOGY AS A SOURCE AND INTENSIFIER OF CONFLICT BUT GREAT POWER RIVALRIES WILL REMAIN THE PROBLEM FOR THESE PEOPLE IS THAT RUSSIA IS NOW VERY WEAK MILITARILY SUCH PERCEIVED VULNERABILITY WOULD BE WORRYING IN THE BEST OF TIMES BUT IT IS DOUBLY SO IF AN AT LEAST PARTIAL RESTORATION OF THE SOVIET BORDERS IS ON THE AGENDA AT TIMES OF WEAKNESS GOOD INTELLIGENCE IS REGARDED BY RUSSIANS AS CRITICAL IT IS IMPORTANT TO GAUGE ACCURATELY THE INTENTIONS OF STRONG POTENTIAL OPPONENTS AND AT THE SAME TIME TO DECEIVE THEM AS TO THE TRUE POLICY AND STRENGTH OF RUSSIA IN THIS CONTEXT A HIGHLY PLACED AGENT IN THE US INTELLIGENCE MACHINE IS A PRICELESS ASSET IN ANOTHER AREA TOO ESPIONAGE IS CRUCIAL TO RUSSIAN SECURITY A REVOLUTION IN MILITARY AFFAIRS HAS BEEN UNDER WAY SINCE THE 1980S NEW TECHNOLOGIES PROMISE TO CHANGE THE NATURE OF THE BATTLEFIELD AS FUNDAMENTALLY AS OPERATIONTACTICAL NUCLEAR WEAPONS DID IN THE 1960S RUSSIA WAS LOSING THE RACE TO DEVELOP THESE TECHNOLOGIES EVEN BEFORE THE DISASTERS THAT HAVE BEFALLEN THE MILITARYINDUSTRIAL COMPLEX IN RECENT YEARS AS FAR AS THE GENERALS ARE CONCERNED RUSSIA MUST IN THE WORDS OF THEIR NEW MILITARY DOCTRINE DEVELOP WORLDCLASS WEAPONRY AHEAD OF COMPETITORS INTELLIGENCE AS THE DOCTRINE MAINTAINS IS ONE OF THE PRIMARY WAYS OF ELIMINATING THE WEST'S FORMIDABLE LEAD A PAPER PUBLISHED IN THE SECOND HALF OF 1993 SETS OUT THE RUSSIANS' VIEW OF THE FUTURE BATTLEFIELD THIS IS AN ACCURATE PORTRAYAL OF THE CRUCIAL ROLE OF INFORMATION TECHNOLOGY IN SUPPORT OF COMMAND CONTROL AND COMMUNICATIONS ALTHOUGH RUSSIA'S SCIENTISTS IN THIS AS IN OTHER FIELDS OF MILITARY TECHNOLOGY ARE AS GOOD AS ANYONE ELSE'S IT IS IN THE TRANSLATION OF RESEARCH AND DEVELOPMENT THROUGH INDUSTRIAL PROCESSES THAT THE RUSSIANS ARE YEARS EVEN DECADES BEHIND THEY NEED TO ACQUIRE AT THE LOWEST COST DETAILED KNOWLEDGE OF ENGINEERING MATERIALS COMPONENTS PRODUCTS AND MANUFACTURING SYSTEMS DESPITE THEIR BOASTS ABOUT HIGH TECHNOLOGY THEY HAVE ALWAYS ACQUIRED IT FROM ABROAD COCOM RESTRICTIONS VERY PROPERLY PLACED OBSTACLES IN THEIR PATH OF BUYING ADVANCED COMPONENTS MATERIALS AND PRODUCTS SO THEY HAVE ALWAYS RESORTED TO ESPIONAGE IT IS EASY FOR WESTERNERS TO ACCEPT THAT RUSSIA IS NOW ONE OF US SIMPLY BECAUSE THE TOP ECHELONS USE THE LANGUAGE OF DEMOCRACY MARKET REFORM AND OPENNESS IT IS DANGEROUS TO BE SO NAIVE INSTEAD THE WEST MUST DO ALL THAT IT CAN TO ENCOURAGE THOSE FEW RUSSIANS WHO GENUINELY WISH TO SLOUGH OFF THE PAST AND TO FIND A RATIONAL WAY OF CREATING A HEALTHY STABLE SOCIETY SEE RELATED ARTICLE RUSSIA'S ARMY BRITTLE AND DANGEROUS WSJ APRIL 5 1994 9404050071 940405 INTERNATIONAL ITALY ELECTION VICTORS BREAK INTO BICKERING OVER PREMIER POST SPECIAL TO THE WALL STREET JOURNAL ROME AN EASTER HOLIDAY TRUCE WAS LOUDLY BROKEN YESTERDAY IN THE FEUD BETWEEN ELECTION VICTORS OVER FORMING ITALY'S NEW GOVERNMENT LESS THAN TWO WEEKS BEFORE ITALY'S PRESIDENT HOPES TO RECEIVE THE NOMINATION FOR THE NEXT PREMIER THE RIFT BETWEEN SILVIO BERLUSCONI AND HIS ELECTION CAMPAIGN ALLY UMBERTO BOSSI APPEARS WIDER THAN EVER MR BOSSI LEADER OF THE NORTHERN LEAGUE WHICH FAVORS GREATER REGIONAL POWERS CALLED MR BERLUSCONI'S FORZA ITALIA MOVEMENT A PRODUCT OF TELEVISION MANIPULATION AND SAID MR BERLUSCONI'S IMMENSE PERSONAL POPULARITY WAS DANGEROUS FOR DEMOCRACY MR BOSSI HAS INSISTED HE WILL NOT ACCEPT THE MEDIA TYCOON AS PREMIER WE ARE IN FRONT OF AN EMERGENCY SITUATION DANGEROUS FOR DEMOCRACY MR BOSSI SAID IT'S A SITUATION IN WHICH A PARTY THAT DIDN'T EXIST WON THEREFORE ONE MAN HAS WON MR BERLUSCONI WHOSE HOLDINGS INCLUDE THREE NATIONAL TELEVISION NETWORKS ENTERED POLITICS IN JANUARY AND HIS PARTY TOPPED THE POLLS IN LAST MONTH'S PARLIAMENTARY ELECTIONS THE NORTHERN LEAGUE IS THE NO 2 PARTNER IN A CONSERVATIVE ALLIANCE MR BERLUSCONI ACCUSED MR BOSSI OF YIELDING TO THE TEMPTATION OF GOING OVER THE SAME OLD ROAD AND HOLDING UP GOVERNMENTAL REFORMS AFTER TWO YEARS OF KICKBACK INVESTIGATIONS THAT HAVE IMPLICATED MORE THAN 3000 BUSINESSMEN AND POLITICIANS PRESIDENT OSCAR LUIGI SCALFARO ASKED THAT THE ELECTION WINNERS PRESENT HIM WITH THE NAME OF A NEW PREMIER BEFORE THE NEW PARLIAMENT CONVENES ON APRIL 15 9404050070 940405 UNSOPHISTICATED INVESTORS FACE SOME DIFFICULT MARKET DECISIONS BY WALL STREET JOURNAL REPORTERS RANDALL SMITH AND ROBERT MCGOUGH IN NEW YORK AND EARL C GOTTSCHALK JR IN LOS ANGELES THIS YEAR'S MARKET DOWNTURN IS FORCING THOUSANDS OF UNSOPHISTICATED INVESTORS TO MAKE AN AGONIZING REAPPRAISAL SHOULD THEY STICK WITH STOCK AND BOND MUTUAL FUNDS WHICH THEY BOUGHT DURING THE PAST FEW YEARS FOR HIGHER RETURNS OR SHOULD THEY BAIL OUT BEFORE THEIR NEST EGGS SHRIVEL EVEN FURTHER THE ROLLERCOASTER ACTION OF THE MARKETS HAS BEEN SCARY ENOUGH BY ITSELF BUT FOR THE FIRST TIME IN MORE THAN THREE YEARS SINCE THESE INVESTORS HELPED SHOVEL MORE THAN 500 BILLION INTO STOCK AND BOND FUNDS THEY ARE OPENING QUARTERLY FUND REPORTS SHOWING SIGNIFICANT LOSSES HOW THEY REACT TO THEIR LOSSES COULD AFFECT THE HEALTH OF BOTH STOCK AND BOND MARKETS FOR THE REST OF THIS YEAR AND PERHAPS LONGER IF MOST OF THEM STAY THE COURSE THE MARKETS WILL HAVE A MUCH BETTER CHANCE OF RECOVERING THAN IF THEY CUT AND RUN YESTERDAY FEARS OF AN IMMEDIATE SELLOFF EASED WHEN THE DOW JONES INDUSTRIAL AVERAGE REBOUNDED FROM A MIDMORNING DROP OF MORE THAN 82 POINTS TO FINISH DOWN 4261 BUT SOME INVESTORS ARE ONLY JUST WAKING UP TO THE EXTRA RISKS THEY TOOK UNTIL LAST FALL FRANK MYERS A LOS ANGELES GROCERYSTORE MANAGER WAS DEVOTED TO THE GOVERNMENTGUARANTEED SAFETY OF BANK CERTIFICATES OF DEPOSIT FINALLY HE RECALLS I GOT FED UP WITH MAKING 3 WHILE EVERYONE ELSE I KNEW WAS MAKING 8 AND 9 ON THEIR MONEY IN BOND MUTUAL FUNDS I FELT LIKE I WASN'T A SMART INVESTOR SO HE PUT 100000 INTO FOUR BOND MUTUAL FUNDS THIS YEAR MR MYERS AGE 42 WAS SHOCKED TO DISCOVER FROM HIS MONTHLY FUND STATEMENTS THAT INSTEAD OF PICKING UP EXTRA RETURNS HE WAS ACTUALLY LOSING MONEY I COULDN'T BELIEVE IT HOW CAN MUNICIPAL BONDS LOSE MONEY IN A MONTH'S TIME ONCE HE BEGAN TRACKING HIS FUNDS' SHARE PRICE AND TOTAL RETURN DAILY HE REALIZED HE HAD LOST ABOUT 5 OF HIS MONEY LAST WEEK HE SOLD 50000 OF THE BOND FUNDS AND PUT THE MONEY TEMPORARILY INTO SAFER MONEYMARKET FUNDS THIS WEEK HE IS DEBATING WHETHER TO SELL THE REST WHY SHOULD I SIT THERE WHILE I'M LOSING MONEY IN THESE FUNDS EVERY DAY HE SAYS I DIDN'T BUY THEM TO SPECULATE ON THE MARKET THIS YEAR'S LOSSES BY STOCK AND BOND FUND INVESTORS ARE ALL THE MORE SURPRISING FOR SOME BECAUSE THE SAME MELTDOWN IN SHORTTERM INTEREST RATES HELPED FUEL STRONG MOSTLY STEADY GAINS IN STOCKS AND BONDS SINCE THE SECOND HALF OF 1990 AFTER IRAQ INVADED KUWAIT SOME OF THE FUEL FOR THOSE RALLIES WAS PROVIDED BY THE TIDE OF MONEY POURING OUT OF FEDERALLY INSURED CDS AND OUT OF MONEYMARKET FUNDS THAT WENT INTO STOCK AND BOND MUTUAL FUNDS BUT THIS YEAR THAT TIDE APPEARS TO BE TURNING FOR BOND FUNDS AND EBBING FOR STOCK FUNDS RATES HAVE RISEN ON CDS AND MONEY FUNDS AT THE SAME TIME AS THE RETURNS ON STOCKS AND BONDS HAVE TURNED NEGATIVE IN FEBRUARY NET CASH FLOWS CONTRIBUTIONS MINUS WITHDRAWALS AND EXCHANGES AMONG FUNDS NOT COUNTING DIVIDENDS INTO BOND FUNDS PLUMMETED TO 11 BILLION FROM 111 BILLION IN JANUARY ACCORDING TO THE INVESTMENT COMPANY INSTITUTE A MUTUALFUND TRADE GROUP IN MARCH INVESTORS PULLED CASH OUT OF BOND FUNDS FOR THE FIRST TIME IN NEARLY FOUR YEARS AMG DATA SERVICES INC IN ARCATA CALIF WHICH ESTIMATES MUTUALFUND CASH FLOWS SAYS INVESTORS PULLED ROUGHLY 1 BILLION A WEEK OUT OF BOND FUNDS IN THE FOUR WEEKS THROUGH MARCH 30 THE TIDE HAS BEEN SLOWER TO TURN FOR STOCK FUNDS THE RATE OF INFLOWS SLOWED IN MARCH BUT THE FEBRUARY STOCKFUND INFLOWS OF 144 BILLION WHILE DOWN FROM 183 BILLION IN JANUARY WAS STILL ONE OF THE BIGGEST MONTHS EVER FOR STOCK FUNDS ACCORDING TO AMG STOCK FUNDS WERE TAKING IN ROUGHLY 2 BILLION A WEEK IN THE FOUR WEEKS THROUGH MARCH 30 YESTERDAY FIDELITY INVESTMENTS THE LARGEST MUTUALFUND COMPANY SAID INVESTORS REMOVED MONEY FROM BOND FUNDS AND OVERSEAS STOCK FUNDS WHILE KEEPING THEIR US STOCK FUND INVESTMENTS LEVEL FIDELITY WAS BRACED FOR A DAY OF HEAVY PHONE ORDER ACTIVITY AND DID RECEIVE SELL ORDERS IN THE FIRST HOUR OF TRADING BUT IT SENT ITS TEMPORARY OPERATORS BACK TO THEIR REGULAR JOBS LATER IN THE DAY LAST WEEK FIDELITY HAD AN OUTFLOW OF ABOUT 800 MILLION FROM BOND FUNDS AND 400 MILLION FROM STOCK FUNDS AN AMOUNT EXECUTIVE VICE PRESIDENT NEAL LITVACK DESCRIBED AS MINIMAL COMPARED WITH THE FIRM'S 260 BILLION IN ASSETS VANGUARD GROUP AND T ROWE PRICE ASSOCIATES TWO OTHER LARGE MUTUALFUND GROUPS REPORTED MODEST OUTFLOWS FROM STOCK FUNDS AND LARGER OUTFLOWS FROM BOND FUNDS A TREND THAT CONTINUED YESTERDAY GEORGE SALEM A BANK ANALYST AT PRUDENTIAL SECURITIES INC SAYS THE MUTUALFUND OUTFLOWS HAVE BANKING EXECUTIVES TALKING ABOUT RECAPTURING SOME OF THEIR LOST CERTIFICATEOFDEPOSIT ASSETS SOME PEOPLE MAY CHICKEN OUT AND RETURN TO BANKS MR SALEM SAYS BUT HE BELIEVES THAT THE MAJORITY OF BANK REFUGEES WILL KEEP THEIR MONEY AT MUTUALFUND COMPANIES ALBEIT SOME IN SAFETY CONSCIOUS MONEYMARKET FUNDS SOME INEXPERIENCED INVESTORS ARE STILL WATCHING AND WAITING HAROLD JACOBS A 71YEAROLD SAN DIEGO RETIREE SAYS HE IS STILL HANGING IN THERE BUT HE ADDS COUNT ME NERVOUS MR JACOBS HAD BEEN A STEADY CD AND TREASURY BILL INVESTOR BUT 3 INTEREST RATES CONVINCED HIM HE NEEDED EXTRA INCOME TO SUPPLEMENT HIS SOCIAL SECURITY AND PENSION ON A FINANCIAL PLANNER'S ADVICE LAST FALL MR JACOBS INVESTED IN A PORTFOLIO OF MUTUAL FUNDS INCLUDING HIGHYIELD BONDS EMERGINGMARKET DEBT MUNICIPAL BONDS USGOVERNMENT BONDS AND A BALANCED STOCKANDBOND FUND TO DELIVER THE HIGHEST POSSIBLE YIELD I COULD GET BUT EVERY TIME HE LOOKS AT HIS STATEMENTS HE SAYS I GET INDIGESTION HIS PRINCIPAL IS ERODING DUE TO THE BATTERING THAT EMERGINGMARKET DEBT FUNDS AND THE MUNICIPAL AND US GOVERNMENT BOND FUNDS HAVE TAKEN BUT THE HIGH DIVIDENDS KEEP COMING IN MY BROKER TELLS ME NOT TO DO ANYTHING SINCE I DON'T NEED ALL MY MONEY RIGHT NOW JUST THE INCOME HE SAYS MY PORTFOLIO IS DESIGNED TO BOUNCE BACK WHEN THINGS CALM DOWN HE TELLS ME SINCE I'M PAYING HIM I'M TAKING HIS ADVICE BUT TONY FRANCO A 35YEAROLD CHICAGO ATTORNEY SAYS HE JUST COULDN'T TAKE THE UPS AND DOWNS OF HIS FIRST STOCK INVESTMENT FIDELITY EMERGING MARKETS FUND WHICH HE SOLD LAST WEEK AFTER VENTURING OUT OF SIXMONTH CDS FOR THE FIRST TIME LATE LAST YEAR I COULDN'T SLEEP AT NIGHT IT PROVES I GUESS THAT I'M JUST NOT THAT KIND OF INVESTOR I'M BETTER OFF BEING AN OLD STICKINTHE MUD MR FRANCO HAS RETURNED THE MONEY TO A MONEYMARKET FUND NOW MAYBE I'LL GO BACK INTO A MORE CONSERVATIVE STOCK OR BOND FUND OR MAYBE NOT IF SIXMONTH CDS GET BACK UP TO 4 1/2 OR 5 I'LL PUT THE MONEY BACK THERE I JUST CAN'T TAKE THIS STUFF MR FRANCO RECALLS FEELING PRETTY GOOD AT THE END OF LAST YEAR WHEN HE CAUGHT PART OF THE FIDELITY FUND'S BIG RISE EVERYBODY IN MY OFFICE WAS TALKING ABOUT EMERGINGMARKETS MUTUAL FUNDS AND HOW THEY WERE THE HOT THING HE SAYS HE SAYS HE STARTED READING FINANCIAL MAGAZINES AND SEVERAL INVESTMENT GURUS SAID EVERY INVESTOR SHOULD HAVE A PORTION OF THEIR ASSETS IN AN EMERGINGMARKETS FUND TO TAKE ADVANTAGE OF THE EXPLOSIVE GROWTH IN DEVELOPING COUNTRIES MR FRANCO SAYS HE MADE ABOUT 15 LAST YEAR ON THE EMERGINGMARKETS FUND SINCE HE GOT IN IT LATE AND I THOUGHT THIS FUND WAS GOING TO KEEP GOING UP BUT THIS YEAR HE SAYS IT'S BEEN DROPPING LIKE A STONE ALL I COULD THINK OF WAS GETTING OUT BEFORE I LOSE ANY MORE I REALIZE INTELLECTUALLY THAT IT WILL EVENTUALLY GO UP AGAIN BUT IT'S NOT FOR ME I GUESS I PROVED I'M NOT A HOTSHOT INVESTOR 9404050069 940405 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED APRIL 1 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER CHICAGO ILL WILL REDEEM ON MAY 1 1994 ITS 720 MORTGAGE PARTICIPATION REVENUE BONDS ISSUE A DUE NOVEMBER 1 2009 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE FRESNO REDEVELOPMENT AGENCY WILL REDEEM ON MAY 1 1994 THE FOLLOWING MUNICIPAL SERVICE CENTER LEASE REVENUE BONDS SERIES A DUE NOV 1 OF THE INDICATED YEARS 59 DUE 19941995 60 DUE 19961997 61 DUE 19982002 AND 55 DUE 2003 FIRST INTERSTATE BANK OF CALIFORNIA IS TRUSTEE GULF COAST WASTE DISPOSAL AUTHORITY WILL REDEEM ON MAY 1 1994 2500000 PRINCIPAL AMOUNT OF ITS 580 WATER POLLUTION CONTROL CONTRACT REVENUE BONDS SERIES 1973 DUE MAY 1 1998 TEXAS COMMERCE BANK HOUSTON IS TRUSTEE ILLINOIS INDUSTRIAL POLLUTION CONTROL FINANCING AUTHORITY WILL REDEEM ON MAY 1 1994 200000 PRINCIPAL AMOUNT OF ITS 660 POLLUTION CONTROL REVENUE BONDS 1974 SERIES A CONTINENTAL BANK CHICAGO IS TRUSTEE LOWER COLORADO RIVER AUTHORITY WILL REDEEM ON MAY 1 1994 THE FOLLOWING REVENUE BONDS DUE MAY 1 2003 2900000 PRINCIPAL AMOUNT SERIES 1976 1300000 PRINCIPAL AMOUNT SERIES 1976A AND 3500000 PRINCIPAL AMOUNT SERIES 1977 CHASE MANHATTAN BANK NEW YORK IS PAYING AGENT PLEASANT HILL CIVIC CENTER AUTHORITY WILL REDEEM ON MAY 1 1994 THE FOLLOWING POLICE SERVICES BUILDING REVENUE BONDS SERIES 1979 DUE NOV 1 OF THE INDICATED YEARS 800 DUE 1994 720 DUE 1995 725 DUE 1996 730 DUE 19971998 740 DUE 19992000 AND 750 DUE 20012006 BANK OF AMERICA NATIONAL TRUST & SAVINGS ASSOCIATION CALIF IS TRUSTEE SOUTHEAST TEXAS HOUSING DEVELOPMENT CORP WILL REDEEM ON MAY 1 1994 30000 PRINCIPAL AMOUNT OF ITS 710 MORTGAGE REVENUE BONDS DUE MAY 1 2021 TEXAS COMMERCE BANK HOUSTON IS TRUSTEE WASHINGTON STATE WILL REDEEM ON MAY 1 1994 THE FOLLOWING BONDS DUE MAY 1 OF THE INDICATED YEARS PUBLIC RECREATION FACILITIES GENERAL OBLIGATION BONDS SERIES E 1979 575 DUE 19951996 580 DUE 19971998 590 DUE 19992000 AND 600 DUE 20012004 GENERAL OBLIGATION BONDS SERIES P2 1979 575 DUE 19951996 580 DUE 19971998 590 DUE 19992000 AND 600 DUE 20012004 GENERAL OBLIGATION BONDS SERIES Q2 1979 575 DUE 19951996 580 DUE 19971998 590 DUE 19992000 AND 600 DUE 20012004 AND GENERAL OBLIGATION BONDS SERIES S2 1979 575 DUE 19951996 580 DUE 19971998 590 DUE 19992000 AND 600 DUE 20012004 BANK OF NEW YORK AND FIRST INTERSTATE BANK WASHINGTON SEATTLE ARE FISCAL AGENTS LEX FAY CO WILL REDEEM ON MAY 1 1994 40000 PRINCIPAL AMOUNT OF ITS 7 SECTION 8 HOUSING REVENUE BONDS SERIES A 1979 DUE MAY 1 1999 CENTRAL BANK & TRUST CO LEXINGTON KY IS TRUSTEE 9404050068 940405 IN ITS BASIC TRAINING THE LEBANESE ARMY REINVENTS A NATION MUSLIMS CHRISTIANS AND DRUZE FORGET CLAN ANIMOSITIES LIVE AND LEARN TOGETHER BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL BEIRUT TODAY'S LECTURE IS CALLED MILITARY ETHICS IN LEBANON SERIOUSLY AT THE PODIUM IS BRIG GEN MICHEL ABU RIZK A 31YEAR VETERAN OF THE LEBANESE ARMY AND FORMER COMMANDER OF THE PRESIDENTIAL BRIGADE OF GEN MICHEL AOUN THE CHRISTIAN MARONITE RENEGADE WHOSE WAR OF LIBERATION IN 1989 DESTROYED MORE OF BEIRUT THAN THE 16YEAR CIVIL WAR PRECEDING IT IN THE AUDIENCE ARE 500 FRESH LEBANESE CONSCRIPTS WHO LISTEN ATTENTIVELY IN THE MESS HALL OF THEIR ARMY BOOT CAMP HIGH IN THE HILLS ABOVE BOMBEDOUT BEIRUT DESPITE ALL OUR DIFFERENCES THE GENERAL TELLS THEM WE HAVE THINGS IN COMMON WHAT ARE THEY IN THE THIRD ROW A SOLDIER JUMPS TO HIS FEET LEBANON IS AN INDEPENDENT STATE WITH INTERNATIONALLY RECOGNIZED BORDERS HE SAYS ANOTHER BARKS OUT LEBANON IS A CIVILIZED COUNTRY WITH A UNIQUE CULTURE DATING BACK 4000 YEARS NOT EXACTLY PROFOUND STUFF BUT IN A COUNTRY OCCUPIED BY TWO FOREIGN ARMIES WHERE KIDNAPPINGS AND CARBOMBINGS WERE THE MAIN CULTURAL ACHIEVEMENTS OF THE PAST 20 YEARS EVEN THE SIMPLEST THINGS NEED RELEARNING AND WHAT BETTER PLACE TO REINVENT A BROKEN NATION THAN IN BASICTRAINING BOOT CAMP THIS IS INDOCTRINATION AT ITS PUREST A BOLD STAB AT SOCIAL ENGINEERING THAT AIMS TO WIPE AWAY DECADES OF TRIBAL ANIMOSITIES BY REDEFINING WHAT IT MEANS TO BE LEBANESE FROM THE MOMENT THE 20YEAROLD DRAFTEES ENTER THE WARWAR FLAG CAMP THEY ARE TOLD TO FORGET THE LEBANON OUTSIDE THE WALLS THE LEBANON WHERE RELIGION CLAN VILLAGE AND PROVINCE ARE THE MEASURE OF A MAN RELIGIOUS SYMBOLS ARE BANNED CONSCRIPTS MAY PRAY ONLY OFFDUTY AND ALONE BARRACKS AND BATTALIONS ARE ASSIGNED A MIX OF MUSLIMS CHRISTIANS AND DRUZE OF NORTHERNERS AND SOUTHERNERS OF PEASANTS AND CITY BOYS THE INTEGRATED UNITS STAND IN CONTRAST TO THE LEBANESE ARMY OF JUST THREE YEARS AGO WHICH LIKE MOST OF LEBANESE SOCIETY WAS SEGREGATED ALONG RELIGIOUS AND CLAN LINES FOR TWO MONTHS THE ERSTWHILE ENEMIES FROM EVERY SECT AND SECTION OF LEBANON ENDURE ALL THE HARDSHIPS OF BOOT CAMP TOGETHER BUT MORE IMPORTANT SAY ARMY OFFICERS THEY ALSO UNDERGO BASIC TRAINING OF THE MIND LECTURES AND EXERCISES EVERY AFTERNOON ON SUBJECTS RANGING FROM LEBANESE GEOGRAPHY AND HISTORY TO MILITARY ETHICS GOOD CITIZENSHIP AND KNOW YOUR ENEMY THE MORAL OF THE SESSIONS IS CLEAR THE OLDER GENERATIONS OF LEBANESE GOT IT ALL WRONG THE CONSCRIPTS ARE TAUGHT THE REAL DANGER TO LEBANON HAS NEVER COME FROM FELLOW LEBANESE OF WHATEVER RELIGION BUT FROM ABROAD THESE KIDS WERE BORN IN 1973 THEY HAVE NO CLUE WHAT THEIR COUNTRY WAS LIKE BEFORE THIS LONG AND DIRTY WAR SAYS GEN ABU RIZK COMMANDER AND CHIEF IDEOLOGIST AT WARWAR WHERE 6000 CONSCRIPTS HAVE BEEN TRAINED SINCE LEBANON REINSTATED A ONEYEAR DRAFT LAST AUGUST THEY GET HERE AND MEET BOYS FROM THE OTHER SIDE FOR THE FIRST TIME THEIR FEARS DISAPPEAR SHAWKY TARRAF A MARONITE DRAFTEE GREW UP AMID THE CROSSFIRE IN CHRISTIAN EAST BEIRUT BOTH OF HIS BROTHERS FOUGHT FOR CHRISTIAN MILITIAS AND AT AGE 15 MR TARRAF HIMSELF JOINED GEN AOUN'S LIBERATION ARMY INSIDE THE TARRAFS' SHRAPNELPOCKED HOUSE NEAR THE OLD GREEN LINE DIVIDING EAST AND WEST BEIRUT THE FAMILY SURVIVED SHELLING BY SHIITE MUSLIMS A FEW BLOCKS AWAY BY DRUZE FORCES IN THE SHOUF MOUNTAINS AND BY SYRIAN SOLDIERS MOVING IN FOR THE KILL ON GEN AOUN MUSLIMS WERE ALWAYS SCARY AND UNREAL TO ME MR TARRAF SAYS AT BOOT CAMP THE YOUNG CONSCRIPT HAS MADE SEVERAL MUSLIM FRIENDS ONE OF WHOM HE INVITED TO HIS HOME ON A DAY OFF MR TARRAF EXPRESSES ANGER AT THE OLDER GENERATION WHO WASTED 17 YEARS OF OUR LIVES AT WAR OUR GENERATION WANTS TO LIVE TOGETHER SECTARIANISM IS SOMETHING FROM THE PAST ONE OF MR TARRAF'S NEW BUDDIES IS HUSSEIN MATAR WHO GREW UP IN ONE OF THOSE SAME MUSLIM NEIGHBORHOODS ACROSS THE GREEN LINE THAT CAUSED THE TARRAFS SO MUCH ANGUISH ON AN AFTERNOON OFF MR MATAR WALKS THROUGH THE CEMETERY NEAR HIS HOUSE WHERE MUSLIMS BURIED THEIR WAR DEAD 12DEEP HE POINTS OUT PLASTER WORK IN HIS LIVING ROOM WHERE A CHRISTIAN SHELL HAD RIPPED THE WALL A DEVOUT SHIITE MR MATAR PRAYS SILENTLY IN THE CORNER OF HIS BARRACKS WHENEVER HE FINDS TIME IT HAS TAKEN HIM A WHILE HE SAYS TO FEEL COMFORTABLE WITH FORMER AOUN SUPPORTERS IN HIS BATTALION SUCH AS MR TARRAF BUT NOW AFTER LIVING DRINKING AND SLEEPING TOGETHER THE FEAR IS OVER BETWEEN US MR MATAR SAYS WE CAN FORGET THE PAST AND LIVE A NEW LIFE THE REEDUCATION PROCESS IS TRICKY AFTER COLONIAL FRANCE GRANTED LEBANON ITS INDEPENDENCE IN 1943 BEQUEATHING POLITICAL POWER TO THE CHRISTIAN MARONITES FRANCOPHONE CHRISTIANS ROUGHLY HALF THE POPULATION THEN RULED LEBANON WITH A EUROPEAN BIAS IN MANY LEBANESE TEXTBOOKS LEBANON WASN'T EVEN CLASSIFIED AS AN ARAB STATE ALTHOUGH MUSLIMS FROM THE ARABIAN PENINSULA CONQUERED THE MOUNTAINOUS TERRITORY 14 CENTURIES AGO INSTEAD THE CHRISTIANS CALLED THEMSELVES PHOENICIANS AFTER THE PREMUSLIM INHABITANTS OF THE AREA SOME OF LEBANON'S CHRISTIAN GOVERNMENTS EVEN COOPERATED WITH ISRAEL GOING AS FAR AS TO SIGN A SHORTLIVED PEACE TREATY WITH ISRAEL AFTER IT INVADED IN 1982 ISRAEL STILL OCCUPIES A STRIP OF SOUTHERN LEBANON BUT SINCE THE SOCALLED TAIF AGREEMENT ENDED THE LEBANESE WAR IN 1989 AND LEFT 40000 SYRIAN TROOPS IN THE COUNTRY POWER HAS SHIFTED TO THE MUSLIMS WHO HAVE ACTUALLY BEEN THE MAJORITY OF THE POPULATION FOR SEVERAL DECADES ACCORDINGLY GEN ABU RIZK AND HIS STAFF HAVE HAD TO CONTRIVE A NEW LEBANESE IDENTITY TO BRIDGE THE SECTARIAN GAP THIS IS A VERY SENSITIVE POINT SAYS THE BRIGADIER GENERAL WHO LIKE MOST LEBANESE ARMY OFFICERS IS A FRENCHSPEAKING MARONITE WE TEACH THE CONSCRIPTS THAT LEBANON IS A PART OF THE ARAB WORLD BUT THAT NOT ALL ARABS ARE MUSLIMS WE TELL THEM THE ARABS EXISTED BEFORE THE MUSLIM CONQUERORS ARRIVED HERE IT GETS KNOTTIER GEN ABU RIZK WHO FOUGHT THE SYRIAN ARMY ALONGSIDE GEN AOUN IN SOME OF THE BLOODIEST BATTLES OF THE LONG WAR HAS ALSO HAD TO EXPLAIN TO HIS MEN WHY ONE OCCUPYING ARMY SYRIA'S IS GOOD AND ANOTHER ONE ISRAEL'S IS BAD WE TELL THEM THE SYRIANS ARE FRIENDLY AND THE ISRAELIS ARE OCCUPIERS' HE SAYS THIS IS THE POINT OF VIEW OF OUR GOVERNMENT AND WE HAVE TO MARCH WITH IT WHEN THEY GRADUATE FROM BOOT CAMP THE CONSCRIPTS ARE DISPERSED THROUGHOUT THE COUNTRY AGAIN IN ACCORDANCE WITH THE GOAL OF RELIGIOUS INTEGRATION THEY MAKE DO WITH A DECREPIT ARMORY OF A FEW PLANES FROM THE 1960S SOME ARCHAIC SOVIET TANKS AND ARTILLERY PIECES FROM SYRIA AND A FLEET OF OLD TRUCKS AND JEEPS SHIPPED FROM US STOCKS IN GERMANY THEIR HUNGARIAN COMBAT BOOTS QUICKLY FALL APART COMPLAINS GEN ABU RIZK WHO HAS CHATTED WITH THE US MILITARY ATTACHE IN BEIRUT ABOUT GETTING SOME AMERICAN BOOTS MANY DRAFTEES WIND UP WORKING THE UBIQUITOUS CHECKPOINTS AROUND LEBANON WHERE THEIR CREASED GREEN FATIGUES FRENCH BERETS AND GENERAL POLITENESS HAVE MADE THEM A WELCOME COUNTER TO THE UNKEPT AND UNPREDICTABLE SYRIAN TROOPS WHO HAVE CHECKPOINTS OF THEIR OWN INDEED ALL THE TALK AT BOOT CAMP ABOUT LEBANESE UNITY AND INDEPENDENCE MAY HAVE REPERCUSSIONS SOMEDAY WHEREVER YOU GO YOU SEE ABUSES BY THE SYRIANS SAYS MR TARRAF THE MARONITE DRAFTEE WHEN OUR ARMY IS FULLY UNIFIED WE WON'T NEED ANY FOREIGN CONTROL 9404050066 940405 REVIEW & OUTLOOK EDITORIAL ASIDES THE MIDAS TOUCH WE ALWAYS KNEW THAT THE FRENCH AND GREEKS KNEW HOW TO LIVE BUT NOW COMES EVIDENCE THAT THEY HAVE FIGURED OUT HOW TO LIVE IN HARD TIMES AS WELL THE WORLD GOLD COUNCIL REPORTED RECENTLY THAT EUROPEAN GOLD JEWELRY PURCHASES DECLINED BY 6 DURING 1993 A RECESSION YEAR SALES IN SPAIN DROPPED BY A FIFTH AND IN ITALY THEY WERE DOWN 15 PERHAPS FEWER BUSINESSMEN WERE GIVING GOLD MONEY CLIPS TO LOCAL POLITICIANS SALES IN GERMANY DROPPED BY 3 AND EVEN IN RECOVERING BRITAIN THERE WAS A FALL OF 6 BUT IN FRANCE SALES SHOT UP BY 12 AND IN GREECE SALES ROSE BY 17 NOW THAT'S STYLE YOU CERTAINLY DON'T WANT TO BE THE ONLY ONE ON THE UNEMPLOYMENT LINE WEARING COSTUME JEWELRY 9404050065 940405 GOLD RUSH JOB OF WIRING CHINA SETS OFF WILD SCRAMBLE BY THE TELECOM GIANTS GOING AFTER HUGE CONTRACTS THEY WOO BUREAUCRATS AND BUILD PLANTS THERE AT&T FACES BIG HANDICAPS BY JOHN J KELLER AND MARCUS W BRAUCHLI STAFF REPORTERS OF THE WALL STREET JOURNAL BEIJING ON A GRAY DAY IN LATE JANUARY EXECUTIVES FROM A DOZEN OF THE WORLD'S BIGGEST TELECOMMUNICATIONS COMPANIES WERE SUMMONED TO A HOTEL JUST OFF TIANANMEN SQUARE TO HEAR A GRIM MESSAGE AS THEY SQUIRMED CHINA'S VICE MINISTER OF POSTS AND TELECOMMUNICATIONS ZHU KAOFENG DELIVERED WHAT AMOUNTED TO A BUSINESS DEATH SENTENCE BEIJING HE SAID WANTS TO CULL ITS DOZEN SUPPLIERS OF NETWORK TRANSMISSION GEAR TO A MORE EFFICIENT NUMBER SAY THREE OR FOUR BY EARLY JULY THE EXECUTIVES WERE STUNNED THEIR COMPANIES HAD SPENT HUNDREDS OF MILLIONS TO ARM FOR THE BATTLE TO SUPPLY THE WORLD'S BIGGEST NEW TELECOMMUNICATIONSEQUIPMENT MARKET NOW THEY WERE BEING TOLD MOST OF THEM WOULD BE SHUT OUT OF MUCH OF IT THE ONLY QUESTION WAS WHICH ONES THAT UNPLEASANT REVELATION HAS INTENSIFIED THE FIGHT FOR CHINA AMONG THE WORLD'S LARGEST TELECOM SUPPLIERS THEY ARE GRAPPLING OVER THE RICHES OF WIRING UP A NATION OF 12 BILLION PEOPLE TO PHONE AND DATA SERVICES WE'RE GOING TO FIGHT FOR THIS BUSINESS VOWS GIANNI JONES WHO HEADS THE CHINA OPERATIONS OF FRENCH GIANT ALCATELALSTHOM AND ATTENDED THE JANUARY MEETING AFTER THAT SOBERING LESSON IN CHINA MARKETING HE FLEW IN ALCATEL'S TOP TRANSMISSION EXPERTS TO LOBBY BEIJING IN A TWODAY BLITZ RIVALS DID MUCH THE SAME IN THE HIGHTECH WORLD OF TELECOMMUNICATIONS SUPPLIERS HAVE ALL BUT SET ASIDE ARCANE COMPARISONS OF BIT RATES AND ATM SWITCHES IN FAVOR OF SHARP ELBOWS CATTY SNIPING AND BLATANT CAMPAIGNS TO CURRY FAVOR WITH THE GOVERNMENT BUREAUCRATS WHO WILL DECIDE THEIR FATE COMPANIES MAKE LOWINTEREST LOANS ON UNUSUALLY SWEET TERMS THEY PROMISE TO SPEND HUGE SUMS TO BUILD PLANTS FOR CHINESECONTROLLED JOINT VENTURES ONE COMPANY SET UP AN ADVISORY BOARD AND INVITED LOCAL OFFICIALS TO SERVE OTHERS TRY TO ADVISE THE GOVERNMENT ON WHICH VENDORS TO PICK THEY GIVE TO THE RIGHT CHARITIES THEY HOST A LOT OF TOURS THAT BRING CHINESE OFFICIALS TO THE US AND EUROPE SETTING ASIDE TIME FOR SHOPPING AND VISITS TO SUCH TELECOM HOTBEDS AS DISNEY WORLD THIS CLASH OF TELECOM TITANS IS BEING PLAYED OUT AT A TIME OF TENSION BETWEEN THE US AND CHINA IN FEBRUARY THE CLINTON ADMINISTRATION BEGAN RATTLING SABERS ABOUT REVOKING CHINA'S MOSTFAVOREDNATION TRADE STATUS IN JUNE UNLESS IT IMPROVES ITS HUMANRIGHTS RECORD REVOCATION WOULD RAISE TARIFFS ON CHINESE IMPORTS IN THE US AND COULD PROMPT CHINA TO RETALIATE BY ORDERING GEAR ONLY FROM NONUS COMPANIES HURTING AMERICAN TELEPHONE & TELEGRAPH CO LAST WEEK THE PLOT THICKENED EVEN WHILE THREATENING TO PUNISH CHINA THE CLINTON ADMINISTRATION LIFTED CURBS ON EXPORTS OF USMADE TELECOM GEAR AND ADVANCED COMPUTERS TO A LIST OF FORMER COLD WAR FOES INCLUDING CHINA IF THE DEBATE OVER MOSTFAVOREDNATION STATUS THREATENS AT&T'S SALES VANQUISHING THE EXPORT BAN MAY HELP THE COMPANY IT COULD SELL EVEN TOPDRAWER EQUIPMENT TO CHINA THE BATTLE FOR CHINA LOOMS AS ONE OF THE FIRST GREAT INDUSTRIAL CONTESTS OF THE NEXT CENTURY THIS YEAR ALONE CHINA WILL SPEND MORE THAN 6 BILLION ON TELECOM GEAR OVER THE NEXT SIX YEARS SUPPLIERS ESTIMATE THE SPENDING WILL TOTAL 90 BILLION NO OTHER NATION IN THE HISTORY OF TELEPHONE SERVICE HAS HAD MORE AMBITIOUS PLANS FOR EVERY 100 CHINESE THERE CURRENTLY ARE FEWER THAN TWO PHONES OR ROUGHLY 40 MILLION LINES BY THE YEAR 2000 BEIJING WANTS TO RAISE THAT TO 10 LINES PER 100 THE EQUIVALENT OF BUILDING A NEW BABY BELL REGIONAL GIANT EVERY YEAR THE TOTAL TAB COULD RUN HUNDREDS OF BILLIONS OF DOLLARS IF BEIJING TRIES TO MATCH THE US LEVEL OF 50 LINES PER 100 PEOPLE CHINA TODAY IS LIKE THE US OF 50 YEARS AGO IT'S BUILDING INFRASTRUCTURE FROM SCRATCH SAYS HERBERT Y CHANG A SHANGHAIBORN AT&T VICE PRESIDENT WHO SPENDS MUCH OF HIS TIME TRAVELING THROUGH HIS HOMELAND TO SELL SWITCHES MORE THAN THE SHEER SIZE OF CHINA'S ORDERS IS AT STAKE THE LOSERS COULD END UP SO FINANCIALLY DISADVANTAGED THAT THEY MIGHT SOMEDAY BE FORCED OUT OF THE BUSINESS ALTOGETHER ALTERING SOME NATIONS' TECHNOLOGY SECTORS IT COSTS A COMPANY AS MUCH AS 2 BILLION TO DEVELOP A NEW GENERATION OF NETWORK SWITCHING GEAR THE US AND EUROPEAN MARKETS ARE MOSTLY SUPPLIED AT LEAST WITH TRADITIONAL PHONE GEAR AND INDIA AND OTHER ASIAN COUNTRIES HAVE SMALLER OR WEAKER ECONOMIES ONLY CHINA OFFERS SUCH ENORMOUS PROSPECTS THIS IS A STRUGGLE FOR SURVIVAL DECLARES JOHAN THEODOR FINGER GENERAL MANAGER OF A JOINT VENTURE BETWEEN GERMANY'S SIEMENS AG AND THE BEIJING GOVERNMENT WE NEED THIS MARKET CHINA'S ECONOMY IS SURGING GROWING AN AVERAGE 9 A YEAR SINCE DENG XIAOPING LAUNCHED HISTORIC REFORMS 15 YEARS AGO ITS TELECOM REVOLUTION FLOWS NATURALLY FROM THOSE CHANGES DEMAND FOR INFRASTRUCTURE AND CONSUMER GOODS HAS EXPLODED AND TELEPHONES TOP THE LIST A THRIVING MARKET ECONOMY AND POOLED FAMILY SAVINGS HAVE PUT A PHONE WITHIN REACH OF MANY BEIJING RESIDENTS TELEPHONES ALSO ARE CRUCIAL IF CHINA IS TO ATTRACT FOREIGN COMPANIES EARLY ON A RECENT MORNING JUST A FEW BLOCKS FROM THE HOTEL WHERE THE EXECUTIVES MET IN JANUARY CROWDS OF PEOPLE JOSTLED TO APPLY FOR PRIVATE PHONE LINES AT BEIJING TELEPHONE CO'S SERVICE CENTER ZHANG YIHAN AN UNSHAVEN WELDER KNEW HE WOULD HAVE TO WAIT SIX MONTHS TO GET A PHONE AND PAY ABOUT 575 WHAT A GOVERNMENT WORKER CAN EARN IN A WHOLE YEAR I DON'T CARE ABOUT THE COST THE 55YEAROLD MR ZHANG SAID OUR LIVING STANDARDS MUST BE IMPROVED SUNG XIUYING A 40YEAROLD NURSERYSCHOOL TEACHER WHO SHARES HER APARTMENT WITH HER PARENTS AND HER CHILDREN STOOD PATIENTLY IN LINE TO GET A PHONE LIKE ALMOST ALL MY FRIENDS AND FAMILY HAVE AS CHINA'S POSTS AND TELECOMMUNICATIONS MINISTER WU JICHUAN PREPARES TO TRIM THE LIST OF SUPPLIERS SWEDEN'S LM ERICSSON AND FRANCE'S ALCATEL MAY BE THE BEST BETS TO MAKE THE CUT ERICSSON FIRST WOOED CHINA A HUNDRED YEARS AGO TODAY IT PROVIDES ABOUT TWOTHIRDS OF ALL CELLULAR GEAR AND RUNS FOUR JOINT VENTURES WITH THE CHINESE ALCATEL IS THE DOMINANT FORCE IN CHINA WITH SALES OF 13 BILLION SO FAR AND ALMOST HALF THE SWITCHING MARKET THAT LEAVES AT&T SCRAMBLING JUST TO STAY IN THE GAME THE WORLD'S MOST POWERFUL TELECOMMUNICATIONS GIANT IS TRYING TO RECOVER FROM A HUGE BLUNDER 15 YEARS AGO IT REJECTED AN INVITATION TO SELL ITS MOST ADVANCED SWITCHES TO THE GOVERNMENT THE CHINESE NEVER FORGOT THAT SAYS WILLIAM WARWICK THE CHAIRMAN OF AT&T CHINA SOME YEARS LATER THE COMPANY ERRED AGAIN DEIGNING TO PROVIDE A SYSTEM BUT NEGLECTING TO ADAPT IT TO CHINA'S TRAFFIC PATTERNS AND LOCAL EQUIPMENT THE SWITCHES WORKED TERRIBLY BEIJING WASN'T PLEASED ON AUG 22 1989 IT ISSUED DIRECTIVE 56 SECRETLY LIMITING THE NUMBER OF FOREIGN PARTNERS IN SWITCHMAKING JOINT VENTURES TO THREE ALCATEL SIEMENS AND JAPAN'S NEC CORP AT&T WAS EFFECTIVELY AND POINTEDLY SHUT OUT SINCE THEN IT HAS WAGED A LOBBYING WAR TO GET BACK INTO THE MARKET IT WON REENTRY ONLY LAST YEAR NOW AT&T IS STRIVING TO ATONE FOR PAST LAPSES IT USES ITS CONSIDERABLE CLOUT IN WASHINGTON TO LOBBY ON CHINA'S BEHALF CLOUT THAT ITS RIVALS FROM SWEDEN FRANCE GERMANY AND JAPAN CAN'T OFFER BEIJING THIS IS WAR MR WARWICK SAYS IN FEBRUARY AS THE CLINTON ADMINISTRATION BEGAN MAKING NOISES ABOUT REVOKING CHINA'S MOSTFAVOREDNATION STATUS MR WARWICK PRESSED CONGRESSIONAL LEADERS AND THE WHITE HOUSE BUT AFTER LEAVING A FINGERWAGGING SESSION IN WASHINGTON HE FLEW DIRECTLY TO BEIJING TO BRIEF YE QING VICE CHAIRMAN OF CHINA'S STATE PLANNING COMMISSION MR CHANG THE SHANGHAIBORN AT&T EXECUTIVE COMMENTS NO COMPETITOR HAS THIS RELATIONSHIP WITH THE US GOVERNMENT MR WARWICK ALSO HAS BEEN TRYING TO CONVINCE MR YE OF THE EFFICIENCY TO BE GAINED BY CULLING THE NUMBER OF SUPPLIERS CHINA USES TO GET ALL KINDS OF EQUIPMENT WE AGREE AN ALCATEL OFFICIAL GIBES THEY SHOULD START WITH AT&T A MAJOR AT&T RIVAL HERE IS NORTHERN TELECOM LTD WHICH HAS BEEN IN CHINA SINCE 1972 LAST YEAR THE CANADIAN COMPANY WAS CLOSE TO COMPLETING A WIDERANGING AGREEMENT WITH MR YE WHEN THE PLANNING OFFICIAL SUDDENLY VANISHED HE SURFACED IN THE US IN THE COMPANY OF AT&T BRASS THEY HAD FLOWN A CHINESE DELEGATION TO TOUR AT&T'S FANCIEST FACILITIES AND MEET SENIOR EXECUTIVES VISITING A CHIP PLANT IN ORLANDO FLA THEY TOOK TIME OUT FOR DISNEY WORLD THEY ALSO TOURED THE UNIVERSAL STUDIOS THEME PARK IN HOLLYWOOD AT&T URGED MR YE TO SIGN A MEMORANDUM OF UNDERSTANDING WHICH WOULD HERALD AT&T AS A MAJOR SUPPLIER TO THE NATIONAL GOVERNMENT AND AID ITS EFFORTS TO WIN CONTRACTS FROM PROVINCIAL OFFICIALS THROUGHOUT THE TRIP HE KEPT SAYING LET'S SIGN' RECALLS AT&T'S MR CHANG THE TWO SIDES DID SIGN IN FEBRUARY 1993 THREE MONTHS AHEAD OF NORTHERN TELECOM AT&T'S MR WARWICK PROUDLY CALLS THE MEMORANDUM A LICENSE TO CONDUCT COMMERCIAL WARFARE COUNTERS ART MCDONALD HIS COUNTERPART AT NORTHERN TELECOM HE MAY HAVE A LICENSE TO WAGE WAR BUT I'VE GOT THE ORDERS MR MCDONALD IS UPSET BY ANOTHER AT&T MANEUVER AT&T HAS PRESSED THE COMMERCE DEPARTMENT WHICH PROMOTES US BUSINESS INTERESTS IN CHINA TO STOP WORKING ON BEHALF OF FOREIGN RIVALS THAT CLAIM US TIES BECAUSE OF THEIR AMERICAN SUBSIDIARIES MR MCDONALD OBJECTS AFTER ALL NORTHERN TELECOM'S LARGEST SWITCHMAKING PLANT IS NEAR RALEIGH NC WE HAVE 20000ODD EMPLOYEES IN THE US WE'RE BINATIONAL HE SAYS HE KEEPS TINY CANADIAN AMERICAN AND CHINESE FLAGS ON HIS OFFICE DESK IN BEIJING WITHIN A FEW WEEKS NORTHERN TELECOM IS EXPECTED TO CLOSE A DEAL WITH BEIJING TO BUILD A SPRAWLING 100 MILLIONPLUS COMPLEX OF SWITCH CHIP AND R&D FACILITIES HERE ACCORDING TO CHINESE MARKET EXPERTS ALTHOUGH NORTHERN TELECOM WOULD FOOT MOST OF THE BILL THE CHINESE WOULD CONTROL THE PLANT THE NEW FACILITY WOULD ALSO GET ITS FIRST BIG ORDER A SWITCH CONTRACT THAT COULD APPROACH 1 BILLION AS PART OF THE TALKS NORTHERN TELECOM WILL PLAY HOST TO CHINESE OFFICIALS ON A NORTH AMERICAN TOUR INCLUDING A TRIP TO SEE NIAGARA FALLS BIDDING FOR ORDERS ROUTINELY INVOLVES SUCH TRIPS AS WELL AS OVERSEAS TRAINING FOR CHINESE OFFICIALS TO WIN SUCH CONTRACTS NORTHERN TELECOM ALSO BUILDS MUCH OF ITS EQUIPMENT LOCALLY ANY SERIOUS CONTENDER MUST INVEST HEAVILY IN FACTORIES AND DEVELOP PRODUCTS USING LOCAL TALENT AS A SIGN OF COMMITMENT TO THE CHINESE COMPANIES THAT DON'T ARE REGARDED AS NEOCOLONIALIST SAYS CHARLES MH SHIU THE NANJINGBORN ASIAPACIFIC STRATEGIST FOR NORTHERN TELECOM THE NEOCOLONIALIST RAP HURTS NEC A POWERFUL PLAYER IN ASIA NEC HAS THREE JOINT VENTURES IN CHINA BUT ITS TOTAL INVESTMENT IN THEM IS LESS THAN 20 MILLION IN MOBILE CELLULAR EQUIPMENT NEC HAS BEEN ALL BUT TOSSED OUT IN FAVOR OF ERICSSON AND MOTOROLA INC ALCATEL BY CONTRAST IS BUILDING A 180 MILLION PLANT IN THE SULFUROUS INDUSTRIAL ZONE OF PUDONG ON THE OUTSKIRTS OF SHANGHAI THE PLANT WHICH WILL BE THE FRENCH COMPANY'S LARGEST FACTORY WILL MAKE SWITCHES AND ADVANCED CHIPS AS WELL SHOW ME COMMITMENT LIKE OURS FROM AT&T IN THIS MARKET BERT DEGRAEVE YELLS AS HE STANDS INSIDE THE CACOPHONOUS PLANT SITE WE BRING THIS TO THE ATTENTION OF THE CHINESE CONSTANTLY MR DEGRAEVE RUNS SHANGHAI BELL A PARTNERSHIP OF ALCATEL CHINA AND THE GOVERNMENT OF BELGIUM THE PROJECT GOT UNDER WAY WITH THE HELP OF ZHU RONGJI SHANGHAI'S FORMER MAYOR AND NOW CHINA'S VICE PREMIER FOR ECONOMIC AFFAIRS THE NEW PLANT HAS HELPED ALCATEL PUT A PREVIOUS GAFFE BEHIND IT IN 1992 THE FRENCH GOVERNMENT SOLD MIRAGE FIGHTER JETS TO TAIWAN AND BEIJING RETALIATED BY CANCELING CONTRACTS TO ACQUIRE SWITCHING GEAR FROM ALCATEL'S FRENCH UNIT CIT ALCATEL WE LOST BEIJING MOANS MR JONES ITS CHINA OPERATIONS CHIEF ALCATEL ALSO ENTICES CHINA WITH LOWINTEREST LOANS IN ONE RECENT DEAL IT GOT THE SPANISH GOVERNMENT TO BACK LOANS FOR CHINA TO BUY GEAR MADE BY A JOINT VENTURE BASED IN MADRID SUCH SWEETHEART DEALS FORCE RIVALS TO MATCH THE OFFERS SIEMENS' JOINT VENTURE HERE MAKES EQUIPMENT AT MR FINGER'S FACTORY IN BEIJING YET TO WIN A BIG ORDER HERE FOR GEAR IT MAKES ELSEWHERE SIEMENS HAD TO GIVE CHINA A BILLIONDOLLAR LOAN ON EXTRAORDINARILY EASY TERMS 45 ANNUAL INTEREST AND A 10YEAR REPAYMENT SCHEDULE AFTER A TWOYEAR GRACE PERIOD SIEMENS COZIES UP TO GOVERNMENTS HERE AND AT HOME TO PURSUE CHINA BUSINESS ITS JOINTVENTURE PARTNER IN BEIJING IS THE CAPITAL'S LOCAL GOVERNMENT AND ITS CHIEF PATRON IS THE MAYOR WHEN THE CONTRACT FOR THEIR BEIJING INTERNATIONAL SWITCHING SYSTEM CORP WAS SIGNED IN 1988 WEST GERMANY'S FOREIGN MINISTER HANSDIETRICH GENSCHER PRESIDED THE COMPANY ALSO HAS SET UP AN ADVISORY BOARD TO OVERSEE ITS BUSINESSES IN CHINA THE HOST AT THE MOST RECENT MEETING WAS A CHINESE MEMBER MINISTER OF ELECTRONICS INDUSTRY HU QILI SIEMENS SAYS IT DOESN'T PAY CHINESE OFFICIALS FOR SERVING ON THE BOARD BUT THE PANEL GIVES SIEMENS INFLUENCE HERE IN TERMS OF POLICY AND STANDARDS SAYS MICHAEL RICKS WHO HELPED SET IT UP BEFORE QUITTING SIEMENS LAST YEAR TO JOIN ERICSSON'S CHINA EFFORT COMPANIES HAVE FOUND OTHER WAYS OF CURRYING FAVOR IN CHINA AT&T GIVES MONEY TO A GOVERNMENTENDORSED CHARITY HEALTH OPPORTUNITIES FOR PEOPLE EVERYWHERE IN SHANGHAI NORTHERN TELECOM RECENTLY SPONSORED A HUGELY SUCCESSFUL RUN OF A PLAY BASED ON THE POPULAR AMY TAN NOVEL THE JOY LUCK CLUB ADS FOR AT&T'S CHINESELANGUAGE USADIRECT SERVICE HAVE BEEN SO EFFECTIVE THAT MANY CHINESE KNOW THE COMPANY AS YAU LING BA YAU LING OR 10810 THE ACCESS CODE PEOPLE CAN DIAL TO REACH RELATIVES ABROAD MOTOROLA'S PAGERS ARE SO COMMON IN CHINA'S CITIES THAT WHEN A BEIJING CAB DRIVER IS ASKED THE MANDARIN WORD FOR PAGER HE RESPONDS MOTAHROLAH ERICSSON HAS MADE DEEP INROADS INTO THE CELLULAR MARKET HERE AND HAS MADE IT DIFFICULT FOR RIVALS TO SELL ANY CELLULAR GEAR HOW BY CONSTANTLY WORKING THE PROVINCES SAYS HANS EKSTROM PRESIDENT OF ERICSSON TELECOMMUNICATIONS CHINA THE COMPANY UNDERWRITES SOCCER TEAMS IN BEIJING AND GUANGZHOU AND SPONSORS A FISHING TOURNAMENT IN DALIAN PROVINCE IT BUDDIES UP TO INFLUENTIAL REGIONAL BUYERS WHILE RIVALS ARE STILL TRYING TO READ LOCAL ROAD MAPS ARE FAVORS OFFERED WE'RE NOT THAT KIND OF COMPANY MR EKSTROM SAYS THE CHINESE BENEFIT FROM ALL THE SCRAPPING MR EKSTROM RECALLS THAT TO WIN ITS FIRST SALE OF A MOBILE SYSTEM HERE IN 1990 WE GAVE AWAY THE SYSTEM AS A DONATION FOR THE ASIAN GAMES THE PLOY BACKFIRED SOON CHINESE NEGOTIATORS WERE USING THE FREE SYSTEM AS A PRICING BENCHMARK AGAINST FUTURE UPGRADES AND HOUNDING ERICSSON TO GIVE MORE DISCOUNTS WE'LL NEVER DO THAT AGAIN MR EKSTROM VOWS IN THE FUTURE TELECOM COMPETITORS WILL BE COMPETING IN A CHANGING CHINA FOR YEARS THE MINISTRY OF POSTS AND TELECOMMUNICATIONS DECIDED ALL CONTRACTS BUT NOW OTHER AGENCIES WANT TO OFFER THEIR OWN PHONE SERVICES CHINA'S POWERFUL STATE COUNCIL RECENTLY APPROVED CREATION OF A SECOND NATIONAL NETWORK A COMPANY BACKED BY THE MINISTRY OF ELECTRONIC INDUSTRY THE PEOPLE'S LIBERATION ARMY AND THE MINISTRY OF RAILROADS AMONG OTHERS THAT GIVES FOREIGN TELECOM COMPANIES A WELLHEELED NEW CLIENT BUT TO DEAL WITH THE UPSTART IS TO RISK GETTING MIRED IN CHINA'S BUREAUCRATIC POLITICS RUMORS OF THE NEW NETWORK HAVE FOSTERED SUSPICION AND RIVALRIES AMONG GOVERNMENT AGENCIES FACTORIES CONTROLLED BY ONE MINISTRY WON'T SUPPLY PRODUCTS TO THOSE CONTROLLED BY ANOTHER ONE WESTERN EXECUTIVE FRETS THE COMPLEXITY OF THESE RELATIONSHIPS GNAWS AT SIEMENS' MR FINGER YOU'RE COMPETING WITH INTERNATIONAL ORDERS ON ONE SIDE YOU HAVE TO WORRY ABOUT INVESTING IN NEW PLANT TRANSFERRING TECHNOLOGY AND EVEN HOUSING YOUR WORKERS HE SAYS NONE OF THIS MAKES SENSE IF YOU DON'T SEE CHINA IN THE LONG TERM SELLING IN CHINA IS VERY DIFFICULT BUT OUTSIDE THE MODERN BEIJING SWITCHING PLANT HERE HE CAN FIND SOME SOLACE IN THE COURTYARD BELOW HIS WINDOW CHINESE WORKERS NOISILY LOAD A SWITCH FOR SHIPMENT TO A PROVINCIAL TELEPHONE COMPANY A SURE SIGN THAT A SALESMAN SOMEWHERE HAS JUST WON ANOTHER SKIRMISH IN THE PHONE WAR CHINA'S VICE MINISTER OF POSTS AND TELECOMMUNICATIONS SPELLS HIS NAME ZHU GAOFENG HIS NAME WAS MISSPELLED IN A PAGEONE ARTICLE TUESDAY 9404050064 940405 INTERNATIONAL BRIEF SUMITOMO CORP TRADING HOUSE SIGNS PACT WITH SIEMENS OF GERMANY SUMITOMO CORP AND GERMAN ELECTRONICS CONCERN SIEMENS AG SIGNED A BROAD COOPERATION AGREEMENT A SPOKESMAN FOR THE TOKYOBASED TRADING HOUSE SAID THE NONEXCLUSIVE AGREEMENT COVERS AREAS FROM ELECTRONIC PARTS TO COMMUNICATIONS EQUIPMENT TO INDUSTRIAL MACHINERY THE SUMITOMO SPOKESMAN SAID HE SAID THE AIM OF THE PACT IS TO INCREASE SIEMENS SALES IN JAPAN THE SUMITOMOSIEMENS NEWS IS THE LATEST IN A STRING OF STRATEGIC TIEUP ANNOUNCEMENTS BETWEEN JAPANESE TRADING HOUSES AND MAJOR FOREIGN COMPANIES THE TWO COMPANIES GOT TOGETHER FIRST IN OCTOBER TO LINK MOSCOW AND THE RUSSIAN CITY OF KHABAROVSK VIA DIGITAL WIRELESS COMMUNICATIONS THE SUMITOMO SPOKESMAN SAID 9404050063 940405 LEISURE & ARTS THE GALLERY IS IT ART OR JUST A BAD HAIR DAY BY AMY GAMERMAN COSIMO DI LEO RICATTO PLAITS CLUMPS OF STEEL WOOL INTO THICK FRENCH BRAIDS SOME CALL IT ART OTHERS CALL IT A CRY FOR CONDITIONER I THOUGHT GEE I CAN RELATE TO THAT SAID JANE DICKSON RECALLING THE FIRST TIME SHE SAW MR DI LEO RICATTO'S FETISHES MY HAIR FEELS LIKE THAT WHEN I'M HAVING A BAD HAIR DAY WHICH MADE FETISHES PERFECT CANDIDATES FOR BY A HAIR'S BREADTH THE SHOW THAT MS DICKSON HAS CURATED FOR THE YOUNG WOMEN'S CHRISTIAN ASSOCIATION'S ELSA MOTT IVES GALLERY HAIR ART IS SPROUTING UP FASTER THAN SPRING CROCUSES IN THE NEW YORK AREA ITS ROOTS ARE DEEP DARK EVEN THE VICTORIANS SPUN THE HAIR OF DEPARTED LOVED ONES INTO BRACELETS WATCH CHAINS AND EARRINGS AND EVEN CREATED MINIATURE GARDENS OF HAIR FLOWERS UNDER GLASS BELLS THESE DAYS ARTISTS ARE USING HAIR TO EXPRESS EVERYTHING FROM THE PANGS OF ETHNICITY TO THE PATHOS OF PATTERN BALDNESS WHEN MS DICKSON A PAINTER WHO WEARS HER THICK BROWN CURLS IN A '20SSTYLE BOB WAS INVITED TO CURATE A SHOW I SAID OK I'LL DO HAIR IT'S IN THE AIR' ALTHOUGH HER SHOW WHICH CLOSES TOMORROW IS HOUSED IN A GALLERY NO BIGGER THAN A CORNER BEAUTY SALON THE 29 WORKS EXPRESS A RANGE OF STYLES HAIRSTYLES THAT IS I ASKED HIM NOT TO GIVE ME ONE WITH A PONYTAIL IN IT BECAUSE WE HAD SO MANY MS DICKSON SAID PAUSING BEFORE DAVID HUMPHREY'S INVOLUNTARY HISTORIES A PAINTING OF DISEMBODIED ELABORATE 18THCENTURYSTYLE WIGS SHE MOVED ON TO NANCY DAVIES'S OMPHA A THICK BOLSTER MADE FROM THE ARTIST'S LUXURIANT REDGOLD HAIR WHICH JUTTED FROM A WALL IT'S ONE OF THE SHOW'S THREE DAVIES HAIRPIECES MOST PEOPLE PASS THROUGH A HAIR PERIOD MS DICKSON SAID NANCY DAVIES HAS MADE IT A LIFETIME COMMITMENT SHE COLLECTED HER HAIR AND STARTED WEAVING IT INTO THESE SCULPTURES SHE MOVED CLOSER TO UNTITLED A TIGHT WODGE OF MS DAVIES'S GLITTERING HAIR ALSO STUCK TO THE WALL AND SNIFFED HMM SMELLS LIKE HAIR SPRAY KAZUMI TANAKA ALSO HARVESTED HER OWN HAIR FOR BOX A DECONSTRUCTED WOOD BOX WHOSE SIDES HAVE FALLEN OPEN TO REVEAL A PERFECT CUBE OF SHINY BLACK HAIR I WAS STARTING TO ITCH MS DICKSON WAS DELIGHTED I LIKE THE FACT THAT ART CAN MAKE YOU ITCH THAT IT MAKES YOUR SKIN CREEP CREEPIER STILL WAS THE THOUGHT OF PUTTING ON LESLEY DILL'S POEM HAIR DRESS A PAPER GOWN STITCHED WITH LONG BLACK HORSEHAIRS TO SPELL OUT AN EMILY DICKINSON POEM THE LINES CRISIS IS A HAIR/TOWARD WHICH THE FORCES CREEP CRAWL UP AND DOWN THE SLEEVES AND ACROSS THE NECK HAIR TODAY GONE TOMORROW PRETTY MUCH SUMS UP THE POETICS OF ROBIN KAHN'S ART WHICH DEVOTES ITSELF TO MALE PATTERN BALDNESS MS KAHN'S BALDING MAN TRIPTYCH FEATURES THREE MALE HEADS EMBROIDERED WITH THREAD NOT HAIR ON BACKDROPS OF MEN'S SUIT CLOTH THE CENTER PANEL SEERSUCKER FEATURES A HEAD LUSHLY COVERED WITH HAIR ON THE CHARCOAL GRAY SQUARE NEXT TO IT THE HAIR HAS STARTED TO THIN BY THE THIRD PANEL A SOMBER PLAID ONLY A PATHETIC ISLAND OF HAIR REMAINS ON THE BALD DOME OF THE MAN'S HEAD AS WE MOVED THROUGH THE GALLERY IT BECAME CLEAR THAT SOME ARTWORKS LIKE THE PEOPLE WHO MAKE THEM HAVE BAD HAIR DAYS HAIRS HAD SPRUNG FREE FROM ALYSON POU'S WILD NIGHTS III A GLOSSY BLACK BRAID ADORNED WITH A PIECE OF PALM BARK AND THE MATTED GRITENCRUSTED HAIR ADORNING MAX MILLER'S SERIES OF 12 HAIRCOVERED TILES LOOKED IN SERIOUS NEED OF SHAMPOO AND CREAM RINSE MR MILLER WHO HAS CREATED HUNDREDS OF HAIR PAINTINGS COLLECTS HIS ART SUPPLIES BY THE BAG FROM BARBER SHOPS HE GOT TERRIBLY SICK FROM BREATHING IN HAIR A LUNG COLLAPSED OR SOMETHING MS DICKSON CONFIDED IF YOU BREATHE IN THESE LITTLE BITS YOU CAN GET ASBESTOSIS THE AGONIES WE UNDERGO FOR THE SAKE OF HAIR OUR OWN WAS THE SUBJECT OF A PERFORMANCE PIECE STAGED EARLIER THIS MONTH BY TWO OF THE SHOW'S ARTISTS MS POU AND DANNY TISDALE CREATOR OF THE AFRO WIG WORK HITOP FADE WIG THEY TOOK TO THE STAGE OF THE YWCA'S AUDITORIUM TO SHARE THEIR THOUGHTS ON RAPUNZEL'S LONG TRESSES MALCOLM X'S CONK JOBS AND THE HAIRS ON THEIR OWN HEADS I ALWAYS WANTED TO HAVE BIG HUGE AFROS SAID MR TISDALE WHO NOW FAVORS THE CLOSESHAVED LOOK I WANTED THE RIBBONS THE COMBS THE PINS SIGHED MS POU SWINGING HER GRAYING BARRETTEFASTENED PAGEBOY AFTERWARD MEMBERS OF THE AUDIENCE WERE INVITED TO LET THEIR OWN HAIR DOWN AS IT WERE A MAN WITH SHORT CURLY HAIR RECALLED COMING OF AGE IN THE '70S IN MY BAR MITZVAH PICTURES I HAVE HAIR SIX SEVEN INCHES HIGH HE CONFESSED A LITTLE PROUDLY A BIT FARTHER OUT ON LONG ISLAND WHERE BIG HAIR STILL RULES THE SMITHTOWN TOWNSHIP ARTS COUNCIL IS STAGING HAIR THE LONG AND SHORT OF IT THROUGH APRIL 17 IT BEARS ABOUT AS MUCH RESEMBLANCE TO THE YWCA'S SHOW AS A PERM DOES TO TRENDY DREADLOCKS NORMA COHEN THE COUNCIL'S REDHEADED DIRECTOR/CURATOR GOT FUNDING FOR HER SHOW FROM L'OREAL WITH GOOD REASON THE HAIRDRESSER OCCUPIES A PLACE OF NEAR TOTEMIC IMPORTANCE IN THIS SHOW WHY BECAUSE YOUR SALON IS A REFLECTION OF YOU TO BORROW A LINE FROM ONE OF THE SHOW'S ARTWORKS A COLORFUL MARKER DRAWING OF A WOMAN WITH A SPIFFY HAIRDO IT AND THREE OTHER WORKS ARE THE CREATIONS OF ISLAND COIFFEURS ROBERT BONANNO AND GEORGE GORGANO WHO SEEM TO OWE MUCH OF THEIR INSPIRATION TO VIDAL SASSOON COMMERCIALS PERHAPS BETH SUTHERLAND SHOULD CALL THEM FOR AN APPOINTMENT WHILE ON A VAIN QUEST FOR A DECENT HAIRDRESSER SHE PAINTED HAIRDO WHICH SHOWS A WOMAN IN A SALON WITH HER HAIR STUCK THROUGH A PERFORATED BATHING CAP I HAVE OFTEN WONDERED WHY EXACTLY I CARE ABOUT MY HAIR AND WHY I PUT MYSELF AT THE MERCY OF BORED STRANGERS FOR AN UNKNOWN OUTCOME SHE MUSES IN HER STATEMENT WHICH LIKE ALL THE ARTISTS' STATEMENTS IS ADORNED WITH A BOBBY PIN MAYBE SHE CAN LEARN HOW TO DO HER OWN HAIR HER STUDIO IS A FORMER BEAUTY SALON COMPLETE WITH DEEP PURPLE HAIRWASHING SINKS AND A LOT OF MIRRORS IT WOULD BE PERFECT FOR MIRIAM CASSELL WHO DOES HER BEST WORK SOMEWHERE BETWEEN THE SINKS AND THE DRYERS AS SHE DECLARES IN HER WORK PERFORMANCE ART A WALL OF PHOTOGRAPHS SHOWING THE ARTIST GETTING HER HAIR DYED GREEN AT THE SALON MY HAIR IS MY CROWNING ARTISTIC EFFECT THE LOWER TIER OF PHOTOGRAPHS DANGLE INDEX CARDS RECORDING THE ARTIST'S HAIR TREATMENTS OVER THE YEARS EG 11/8/90 THE WORKS OTHER ARTISTS IN THIS SHOW HAVE VOWED NEVER TO MESS WITH THEIR HAIR AGAIN BARBARA ZUCKER'S HAIR STRAIGHTENING A FIVEFOOTHIGH STEEL COIL WRAPPED WITH SYNTHETIC HAIR IS A REQUIEM FOR A CHILDHOOD SPENT STRUGGLING AGAINST HER CURLS IN AN ATTEMPT TO PASS FOR ARYAN IN 1974 SUSAN CARTER CARTER GOT SO TIRED OF HER LONG HONEYBLOND BRAID THAT SHE CUT IT OFF AFTER KEEPING IT IN A BAG FOR YEARS SHE BUILT HER BRAID A SHELLENCRUSTED CASE RELIQUARY FOR MY BRAID IN WHICH IT NOW REPOSES CURLED LIKE A SLEEPING ANIMAL EVEN BALD WOMEN HAVE A PLACE HERE GREG REM'S PAINTING RED HEAD IS A TRIBUTE TO A FRIEND WHO LOST HER HAIR AFTER UNDERGOING CHEMOTHERAPY AND SYLVIA HARNICK HAS CONTRIBUTED HER HAIRLESS CARVING ODE TO THE BALD EAGLETTE IT WAS TEMPTING TO COVER IT WITH ONE OF GLORIA TOYUN PARK'S FANTASTIC WIGS HER PURPLE HELMET WIG WITH CURLERS MODEL OR PERHAPS THE 18THCENTURYSTYLE WEEPING WILLOW DIPPED IN ORANGE SORBET JUST ABOUT THE ONLY STYLE THAT ISN'T ON VIEW IS THE ONE THAT LONG ISLAND MADE FAMOUS THE TEASED TOWER OF HAIR MANY ASSOCIATE WITH THE LAND OF THE BUTTAFUOCOS IS NOWHERE IN EVIDENCE IN THIS SHOW NOBODY DID THAT MARVELED MS COHEN IT CERTAINLY WOULD HAVE BEEN A LEGITIMATE THOUGHT 9404050062 940405 A PRISON FOR CRUEL AND UNUSUAL CRIMINALS BY JONAH GOLDBERG IN A REMOTE STRETCH ALONG THE COAST OF NORTHERN CALIFORNIA SITS PELICAN BAY STATE PRISON BUILT IN 1989 IT IS A STATEOFTHEART 223 MILLION SUPERMAXIMUM SECURITY PRISON WITHIN PELICAN BAY IS ANOTHER PRISON THE SECURITY HOUSING UNIT OR SHU SHOE THE WORST TROUBLEMAKERS END UP THERE FOR PELICAN BAY IT IS ALSO WHERE SOME LEGAL TROUBLES BEGIN STERILE AND SEVERE THE SHU IS THE PRISON OF LAST RESORT IN THE STATE'S CORRECTIONAL SYSTEM A DECADE AGO ON THE THEORY THAT A FEW BAD APPLES CAN SPOIL THE WHOLE BARREL CALIFORNIA BEGAN REMOVING ESPECIALLY VIOLENT PRISONERS FROM THE GENERAL PRISON POPULATION THE SHU WAS BUILT TO PUT ALL THE BAD APPLES IN ONE PLACE AND THE 1500 MEN IN THE SHU ARE VERY BAD APPLES AROUND HALF OF THEM ARE SENT THERE BECAUSE THEY ARE IN PRISON GANGS THE SOURCE OF MOST PRISON VIOLENCE IN CALIFORNIA THEY CAN RETURN TO THE PRISON POPULATION IF THEY PERSUASIVELY RENOUNCE THEIR GANG AFFILIATION THE OTHER HALF HAVE BEEN CAUGHT ASSAULTING OR MURDERING OTHER INMATES OR STAFF AS DEPUTY STATE ATTORNEY GENERAL PETER SIGGINS HAS SAID PRISONERS WHO END UP AT PELICAN BAY DON'T GET THERE BY ACCIDENT OR COINCIDENCE NONETHELESS THE PRISONERS IN THE SHU HAVE RECENTLY CONCLUDED A CLASSACTION SUIT AGAINST THE PRISON SYSTEM ALLEGING THAT THEIR RIGHTS HAVE BEEN VIOLATED JUDGE THELTON HENDERSON OF US DISTRICT COURT WILL RULE SHORTLY OF COURSE THE MEDIA HAVE JUMPED ON THE STORY IN SEARCH OF INJUSTICE DATELINE NBC CNN INVESTIGATIONS NATIONAL PUBLIC RADIO AND 60 MINUTES HAVE EACH VISITED THE SHU BRINGING BACK DIRE REPORTS SUGGESTIVE TO THEM OF UNCONSTITUTIONAL TREATMENT THE SHU IS INDEED A ROUGH PLACE PRISONERS MAY LEAVE THEIR CELLS FOR ONLY 90 MINUTES A DAY THEY SHOWER EAT AND EXERCISE ALONE THERE ARE NO GROUP ACTIVITIES AND RELIGIOUS PRACTICES THAT REQUIRE LEAVING THE CELL ARE FORBIDDEN THE DESIGN OF THE PRISON IS EXTREMELY SPARTAN WITH ALMOST NO DIRECT SUNLIGHT AND WHEN UNCOOPERATIVE PRISONERS MUST BE EXTRACTED FROM THEIR CELLS THE GUARDS DO NOT TREAT THEM GENTLY TO SAY THE LEAST IN THE MOSTCITED CASE A RECALCITRANT PRISONER WHO HAD SMEARED FECES ALL OVER HIMSELF WAS PUT IN A SCALDING BATH BY PRISON GUARDS CAUSING SEVERE BURNS IT SHOULD BE NOTED THAT THIS PUNISHMENT WAS UNSANCTIONED AND OUT OF LINE WITH THE PRISON'S POLICY THE MISTAKE WAS ADMITTED AND THE PERSON RESPONSIBLE WAS FIRED STILL HALF OF THE INMATES IN THE SHU HAVE CELLMATES MOST ARE ALLOWED TELEVISION SETS ALL ARE ALLOWED BOOKS AND MAGAZINES INMATES MAY TALK TO EACH OTHER THROUGH THE GATES OF THEIR CELLS THEY CAN HAVE WEEKEND VISITORS AND THE SUPREME COURT REQUIRES WEEKLY ACCESS TO THE LAW LIBRARY WHERE THEY MAY WORK ON LEGAL APPEALS NEVERTHELESS THE INMATES CLAIM THEY'RE SUFFERING FROM DEBILITATING SENSORY DEPRIVATION THEIR LAWYERS ARGUE THAT SUCH DEPRIVATION IS A BREACH OF THE EIGHTH AMENDMENT PROHIBITING CRUEL AND UNUSUAL PUNISHMENT CONSIDERING THE EXPANSION OF PRISONERS' RIGHTS IN THE PAST 25 YEARS THE COURT MIGHT WELL AGREE IN ONE JURISDICTION IN GEORGIA IT'S UNCONSTITUTIONAL FOR JAIL INMATES TO BE DENIED AIR CONDITIONING OR TELEVISION BUT IT SHOULDN'T THE LAW RECOGNIZES THAT CERTAIN PUNISHMENTS ARE NOT CRUEL AND UNUSUAL IN ALL CONTEXTS TWENTY YEARS OF HARD LABOR FOR STEALING A CANDY BAR IS CRUEL AND UNUSUAL TWENTY YEARS FOR A SERIAL RAPIST SEEMS ON THE LIGHT SIDE TO MOST PEOPLE BUT BOTH ACTS DO INVOLVE BREAKING THE LAW THE SHU'S SEVERE SURROUNDINGS AND SPECIAL RULES ARE AIMED AT THE CHRONIC CRIMINAL WHOSE VIOLENT BEHAVIOR CONTINUES EVEN IN PRISON HELPING TO DESTROY THE REHABILITATION AND SAFETY OF OTHER PRISONERS THIS SPECIAL TREATMENT IS ENTIRELY JUSTIFIED IT IS AN UNFORTUNATE FACT AS SCORES OF STUDIES HAVE SHOWN THAT THE REHABILITATION OF REPEAT OFFENDERS LIKE THE SHU'S INHABITANTS GENERALLY DOESN'T WORK THIS IS THE PREMISE BEHIND THE POPULAR THREESTRIKES MOVEMENT LAST DECEMBER CALIFORNIANS LEARNED THAT THE MURDERER OF 12YEAROLD POLLY KLAAS A RESIDENT OF A TOWN NEAR SAN FRANCISCO HAD BEEN TWICE CONVICTED OF KIDNAPPING AND RELEASED AFTER SERVING ONLY HALF HIS TERM SOON PEOPLE WERE SIGNING PETITIONS ON BEHALF OF A THREESTRIKES MEASURE AT THE RATE OF 15000 A DAY LAST MONTH SUCH A MEASURE WAS SIGNED INTO STATE LAW WHAT IS MORE MOST CRIMINOLOGISTS AGREE THAT MOST VIOLENT CRIME IS PERPETRATED BY A VERY SMALL FRACTION OF THE POPULATION IN ONE STUDY MARVIN WOLFGANG COMPILED THE RECORDS OF MALES BORN AND RAISED IN PHILADELPHIA IN 1945 AND 1958 HE FOUND THAT ABOUT 7 OF BOTH GENERATIONS COMMITTED TWOTHIRDS OF ALL VIOLENT CRIME THREEFOURTHS OF ALL RAPES AND ROBBERIES AND ALMOST EVERY MURDER MORE RECENT STUDIES HAVE PUT THE CORE OF HABITUAL OFFENDERS AT BETWEEN 1 AND 2 OF THE MALE POPULATION PERHAPS MORE THAN 50 OF ALL VIOLENT CRIME IS ATTRIBUTABLE TO THIS TINY GROUP THE SHU WAS DESIGNED TO HOUSE THE WORST AMONG THESE MEN AND DETER VIOLENT BEHAVIOR IN CALIFORNIA'S STATE PRISONS AN ATTORNEY FOR ONE OF THE INMATES ARGUED THAT THE SHU WAS DESIGNED TO INSTILL TERROR INTIMIDATION AND DREAD THROUGHOUT CALIFORNIA'S PRISON POPULATION ACTUALLY IT MAY HAVE HAD THE OPPOSITE EFFECT IN THE 1970S BEFORE CALIFORNIA BEGAN SEGREGATING ITS WORST PRISONERS ONE OUT OF EVERY 1200 INMATES WAS MURDERED BY ANOTHER INMATE BY THE 1980S THE RATE DROPPED TO ONE IN 3500 IN THE 1990S THE RATE IS ONE IN 12000 THE ASSAULT RATE DECLINED FROM 48 PER 100 IN 1984 TO 25 IN 1991 A 48 DROP THIS DECLINE OCCURRED WHILE CALIFORNIA'S TOTAL PRISON POPULATION INCREASED MORE THAN 300 FROM 1980 TO AN ALLTIME HIGH OF 119000 INMATES TODAY ALMOST 200 OF DESIGN CAPACITY CONTRARY TO THE POPULAR PERCEPTION OF PRISON LIFE MOST INMATES WANT NO PART OF THE BRUTAL VIOLENCE PERMEATING OUR PRISONS THE MAJORITY WANT TO DO THEIR TIME PEACEFULLY GET OUT AND STAY OUT MANY CONVICTS JOIN GANGS BECAUSE THEY WANT PROTECTION FROM VIOLENCE TOO OFTEN THEY MUST DO THEIR TIME IN INSTITUTIONS THAT ARE VIRTUALLY RUN BY THE MOST VIOLENT INMATES IF THIS BRUTAL MINORITY CANNOT BE DETERRED THEN IT IS HARD TO SEE WHY IT SHOULD NOT BE QUARANTINED IN PLACES LIKE THE SHU CONSIDER KENNETH WARD ONE OF THE PLAINTIFFS IN PELICAN BAY'S LEGAL FIGHT AND A MAN WHO WAS VIOLENT LONG BEFORE HE WENT TO THE SHU CONVICTED OF ATTEMPTED MURDER AND ROBBERY AND PLACED IN THE SHU FOR ORDERING THE MURDER OF ANOTHER INMATE MR WARD TOLD CNN IF I'M TREATED BAD IN HERE I'M GOING TO TAKE IT OUT ON SOMEBODY THAT'S THE WAY I FEEL IF THEY WANT TO SIT OUT THERE AND SAY WELL LEAVE HIS ASS IN THERE' COOL NO PROBLEM THEY FAIL TO REALIZE I GOT A DATE I'M GOING TO GET OUT SOMEBODY'S GOING TO PAY TO CNN THIS IS PRIMA FACIE EVIDENCE OF THE BRUTALIZING EFFECTS OF PRISON TO OTHERS IT MAY BE EVIDENCE OF PRECISELY THE NEED FOR PRISONS LIKE THE SHU WHOSE TOUGH CONDITIONS MATCH THE DEPRAVED CHARACTER OF THE INMATES THEY MUST HOUSE INDEED THE PARENT OR SPOUSE OF MR WARD'S NEXT VICTIM MIGHT ASK THE QUESTION WHY ARE WE RELEASING MEN LIKE MR WARD AT ALL MR GOLDBERG IS A RESEARCH ASSISTANT AT THE AMERICAN ENTERPRISE INSTITUTE IN WASHINGTON AND ASSOCIATE PRODUCER OF THE PUBLIC TELEVISION SERIES THINK TANK 9404050061 940405 REVIEW & OUTLOOK EDITORIAL ASIDES PHOTO FINISHED REUTERS REPORTED YESTERDAY THAT MISS LEBANON UNDERWENT TWO HOURS OF MILITARY QUESTIONING IN BEIRUT FOR HAVING HER PICTURE TAKEN NEXT TO MISS ISRAEL IN JOHANNESBURG SOMETHING ABOUT COLLABORATING WITH THE ENEMY LEBANON SAYS IT'S OFFICIALLY BEEN AT WAR WITH ISRAEL SINCE 1948 9404050060 940405 BUSINESS BRIEF US LONG DISTANCE CORP CLASSACTION SUITS DISMISSED AT THE REQUEST OF PLAINTIFFS US LONG DISTANCE CORP SAN ANTONIO SAID TWO SHAREHOLDER CLASSACTION SUITS ALLEGING IMPROPER ACCOUNTING AND DISCLOSURE VIOLATIONS WERE DISMISSED AT THE PLAINTIFFS' REQUEST THE SUITS WERE FILED AGAINST THE COMPANY ITS BOARD AND A FORMER DIRECTOR IN US DISTRICT COURT IN SAN ANTONIO IN DECEMBER AFTER THE COMPANY SAID THE SECURITIES AND EXCHANGE COMMISSION WAS CONDUCTING AN INFORMAL INQUIRY INTO ITS ACCOUNTING PRACTICES THE SUITS ACCUSED IT OF VIOLATING FEDERAL SECURITIES LAWS THE LONGDISTANCE AND OPERATORSERVICES COMPANY SAID IT MADE NO PAYMENTS AND DIDN'T AGREE TO ANY CONDITIONS IN CONNECTION WITH THE DISMISSAL OF THE SUITS WE WERE ABLE TO CONVINCE THE PLAINTIFFS IN THESE SUITS THAT THE CLAIMS ALLEGED IN THESE SUITS WERE IN FACT WITHOUT MERIT SAID PARRIS H HOLMES JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER AN ATTORNEY FOR THE PLAINTIFFS DIDN'T RETURN TELEPHONE CALLS A COMPANY SPOKESWOMAN SAID THE SEC INQUIRY IS CONTINUING 9404050059 940405 BUSINESS BRIEF MILLIPORE CORP COMPANY PLANS TO SELL ASSETS OF WATERS CHROMATOGRAPHY MILLIPORE CORP BEDFORD MASS SAID IT AGREED TO SELL THE ASSETS OF ITS WATERS CHROMATOGRAPHY DIVISION FOR 360 MILLION TO WATERS HOLDINGS INC A NEW COMPANY MILLIPORE SAID IN NOVEMBER THAT IT WOULD SELL WATERS A MAKER OF ANALYTICAL INSTRUMENTS TO CONCENTRATE ON ITS MORE PROFITABLE FILTERS BUSINESS JOHN GILMARTIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MILLIPORE SAID WE'VE GIVEN THOUGHT TO A STOCK BUYBACK WITH THE PROCEEDS HE SAID DIRECTORS WILL DECIDE AFTER THE TRANSACTION IS CONCLUDED BY THE END OF JUNE ANALYSTS HAVE ESTIMATED THAT MILLIPORE COULD BUY BACK 25 OF ITS 279 MILLION SHARES OUTSTANDING WITH THE PROCEEDS OF THE WATERS SALE AND MILLIPORE'S PLANNED SALE OF ITS BIOSCIENCE BUSINESS WATERS HOLDINGS IS EQUALLY OWNED BY AEA INVESTORS INC A NEW YORK EQUITYINVESTMENT FIRM AND BAIN CAPITAL INC A BOSTONBASED INVESTMENT FIRM DOUG BERTHIAUME WHO WILL REMAIN PRESIDENT OF WATERS SAID THAT THE CHANGE OF HANDS ISN'T EXPECTED TO RESULT IN WHOLESALE COSTCUTTING OR LAYOFFS 9404050058 940405 WHAT'S NEWS BUSINESS AND FINANCE STOCK AND BOND PRICES TUMBLED AGAIN THOUGH STOCKS DIDN'T FALL AS MUCH AS SOME EXPECTED THE DOW JONES INDUSTRIALS LOST 4261 TO 359335 BONDS CONTINUED THEIR DIVE DESPITE A PURCHASING MANAGERS' REPORT SHOWING PRICE INCREASES IN MARCH HAD SLOWED THE TREASURY'S BENCHMARK 30YEAR ISSUE PLUNGED 1 1/2 POINTS DRIVING THE YIELD TO 740 THE MARKET DOWNTURN IS FORCING THOUSANDS OF UNSOPHISTICATED INVESTORS TO DECIDE WHETHER TO STICK WITH THEIR MUTUAL FUNDS OR BAIL OUT THE RISE IN LONGTERM RATES HAS CAUGHT WASHINGTON POLICY MAKERS BY SURPRISE AND THEY ARE TRYING TO FIGURE OUT WHAT IF ANYTHING TO DO ABOUT IT WHILE FINANCIAL MARKETS FEAR STRONG JOBS GROWTH WILL LEAD TO WAGE INFLATION MANY ECONOMISTS AREN'T ALARMED NORTHROP WON THE BIDDING WAR FOR GRUMMAN WITH A 62ASHARE OFFER AND QUICKLY BEGAN EXPOUNDING ITS STRATEGY OF INTEGRATING AIRCRAFT AND ELECTRONICS IN THE CONSOLIDATING ARMS INDUSTRY NORTHROP'S CHAIRMAN DEFENDED THE 217 BILLION OFFER WHICH WAS 7 A SHARE HIGHER THAN MARTIN MARIETTA'S MARTIN MARIETTA STILL WANTS TO GROW THROUGH ACQUISITIONS BUT ITS REFUSAL TO FIGHT FOR GRUMMAN SUGGESTS DEALS WILL BE SMALLER AND FOR PARTS OF FIRMS REVCO AGREED TO BUY HOOKSUPERX FOR ABOUT 600 MILLION IN A MOVE THAT WILL CREATE THE SECONDLARGEST US DRUGSTORE CHAIN BEHIND WALGREEN NOVELL HAS SELECTED A HEWLETTPACKARD SENIOR EXECUTIVE TO SUCCEED CHIEF EXECUTIVE RAYMOND NOORDA ROBERT FRANKENBERG HAS BROAD EXPERIENCE IN SOFTWARE BIG INFORMATION SYSTEMS AND PERSONAL COMPUTING GENERAL MILLS SAID IT WILL SLASH PRICES ON EIGHT OF ITS MOST POPULAR READYTOEAT CEREALS AND CUT BACK ON ITS CENTSOFF CEREAL COUPONS SEC AND NASD OFFICIALS ARE LOOKING INTO POSSIBLE INSIDER TRADING IN JANUARY IN THE STOCK OF WLR FOODS A TYSON FOODS TAKEOVER TARGET PEOPLE FAMILIAR WITH THE INQUIRY SAID DISNEY SAID CHAIRMAN AND CEO MICHAEL EISNER ASSUMED THE ADDITIONAL TITLE OF PRESIDENT AFTER THE DEATH IN A HELICOPTER CRASH OF FRANK WELLS MILES REACHED A PACT WITH 11 STATE ATTORNEYS GENERAL TO END ITS PRACTICE OF PAYING PHARMACISTS TO COUNSEL PATIENTS ABOUT ITS HEART DRUG UNILEVER'S US UNIT IS IN THE MIDST OF A RESTRUCTURING PLAN TO CUT OVERHEAD COSTS OVER 20 IMPROVE MARKETING AND SPEED UP PRODUCT INNOVATION CONTINENTAL AIR LAUNCHED THE ANNUAL SPRING TRANSATLANTIC FARE WAR BUT ADDED A WRINKLE BY ELIMINATING THE RESTRICTIONS THAT USUALLY APPLY ADVANCED MICRO DEVICES EXCEEDED WALL STREET ESTIMATES FOR FIRSTQUARTER PROFIT BUT SOME ANALYSTS ARE NOW WORRYING ABOUT THE COMPANY'S PROSPECTS FOR THE SECOND HALF OF THE YEAR GENENTECH SAID ITS FIRSTQUARTER PERFORMANCE WILL EQUAL THE MOST BULLISH ANALYSTS' FORECASTS WHICH HAVE PREDICTED PROFIT OF ABOUT 366 MILLION THE BIOTECHNOLOGY COMPANY ALSO ANNOUNCED A FAVORABLE CLINICAL TEST FOR ITS CYSTIC FIBROSIS DRUG PULMOZYME FIDELITY INVESTMENTS HIRED INVESTMENT BANKER BRUCE WASSERSTEIN TO REPRESENT ITS MACY BANK DEBT HOLDING THE ACTION SUGGESTS FIDELITY IS ACTIVELY SEEKING A SALE OF THE RETAILER TOKYO STOCKS FELL BROADLY INFLUENCED BY FEARS OF A WALL STREET PLUNGE BUT TURNOVER WAS WAS LIGHT AS INVESTORS TOOK A WAITANDSEE APPROACH THE NIKKEI INDEX FELL 15494 TO 1912222 MANY EUROPEAN AND ASIANPACIFIC MARKETS WERE CLOSED FOR A HOLIDAY MAGAININ PHARMACEUTICALS' STOCK PLUNGED 59 AFTER IT SAID ITS PRODUCT TO TREAT A SERIOUS SKIN INFECTION WAS UNSUCCESSFUL IN CLINICAL TRIALS THE FIRM'S STOCK WHICH HAD HELD ITS VALUE DURING THE RECENT OVERALL MARKET DOWNTURN LOST 7875 TO CLOSE AT 5375 A MALAYSIAN COMPANY CONTROLLED BY CONGLOMERATE HONG LEONG GROUP AGREED TO BUY USBASED SNYDERGENERAL A FAMILYOWNED MAKER OF AIRCONDITIONING AND AIRFILTRATION EQUIPMENT THE PURCHASE PRICE IS BELIEVED TO BE 400 MILLION TO 500 MILLION BONDS LEHMAN BROTHERS TREASURY INDEX 502940 OFF 16090 COMMODITIES OIL 1579 A BARREL UP 100 DOW JONES FUTURES INDEX 14023 OFF 187 SPOT INDEX 13326 UP 086 DOLLAR 10320 YEN OFF 043 16973 MARKS UP 00006 9404050057 940405 MARKETING & MEDIA ADVERTISING GLOSSY GARDEN MAGAZINES OFFER FERTILE GROUND FOR UPSCALE ADS BY MEG COX BABY BOOMERS PROBABLY SPEND MORE TIME IN THEIR GARDENS THAN THEIR GYMS NOW SO NEW GARDENING MAGAZINES ARE SPROUTING LIKE WEEDS BUT THEY FACE A HARD TRUTH ADVERTISERS HAVE NEVER FLOCKED TO GARDENING MAGAZINES THE WAY READERS DO THE NUMBERS ARE TANTALIZING THIS COUNTRY'S 70 MILLION GARDENERS SPENT 23 BILLION ON PLANTS AND EQUIPMENT IN 1992 SAYS THE NATIONAL GARDENING ASSOCIATION A 47 INCREASE OVER FIVE YEARS AND EXISTING GARDENING MAGAZINES THOUGH PLENTIFUL ARE SMALL NICHE PUBLICATIONS LIKE FINE GARDENING AND HORTICULTURE WHOSE ADVERTISING IS LARGELY LIMITED TO COMPOSTBIN MAKERS AND SEED COMPANIES THERE IS NO SUCH THING AS A GLOSSY MAINSTREAM GARDENING PUBLICATION FULL OF UPSCALE ADS THAT ATTRACT THE ONE MILLION SUBSCRIBERS OF BON APPETIT SAY OR FIELD & STREAM'S TWO MILLION THE MOST POPULAR TITLE IS NOFRILLS 50YEAROLD ORGANIC GARDENING WITH A CIRCULATION OF 775000 AND VIRTUALLY ZERO NONGARDENING ADS SEVERAL SAVVY PUBLISHERS ARE DETERMINED TO CHANGE THAT ARRIVING ON NEWS STANDS TODAY IS GARDEN DESIGN A SLEEPY MAGAZINE THAT WAS ACQUIRED AND LAVISHLY OVERHAULED BY CHRISTOPHER MEIGHER A FORMER TIME INC EXECUTIVE HE IS AIMING FOR A CIRCULATION OF HALF A MILLION AND LOADS OF UPSCALE ADVERTISERS WE SEE OUR MAGAZINE AS MORE LIKE ARCHITECTURAL DIGEST THAN HORTICULTURE A GORGEOUS LIFESTYLE MAGAZINE MORE THAN A HOWTO GARDENING MAGAZINE SAYS MR MEIGHER NOW CHAIRMAN OF MEIGHER COMMUNICATIONS LP IN NEW YORK AND GIANT PUBLISHER MEREDITH CORP OF DES MOINES IOWA PLANS TO START A MAJOR MASSMARKET GARDENING MAGAZINE NEXT YEAR HOPING TO REACH A CIRCULATION OF AT LEAST ONE MILLION IT IS TENTATIVELY CALLED HOME GARDEN AND LANDSCAPE SAYS CHRISTOPHER LITTLE PUBLISHING DIRECTOR FOR BETTER HOMES & GARDENS MEREDITH WANTS ITS MAGAZINE TO BE BEAUTIFUL BUT HEAVY ON THE BASIC SERVICE JOURNALISM THE TWO APPROACHES ARE QUITE DIFFERENT BUT BOTH EXECUTIVES SAY THEY THINK THE TIME IS RIPE FOR GARDENING MAGAZINES TO GROW UP AND BECOME A MAINSTREAM CATEGORY MR MEIGHER'S GAME PLAN IS TO CREATE NEW MAGAZINES ABOUT BABY BOOMERS' PASSIONS FIGURING THAT ADVERTISERS WILL FOLLOW GARDENING WAS A LOGICAL CHOICE THE NATIONAL GARDENING ASSOCIATION CONFIRMS THAT CONSUMERS BETWEEN THE AGES OF 30 AND 49 WITH COLLEGE DEGREES ARE THE BIGGEST PURCHASERS OF GARDENING PRODUCTS BOOMERS ARE BECOMING AS OBSESSED WITH FINDING THE BEST IMPORTED PRUNING SHEARS AS THEY ONCE WERE ABOUT BUYING THE PERFECT RUNNING SHOE GARDEN DESIGN FOUNDED ABOUT 13 YEARS AGO BY THE AMERICAN SOCIETY OF LANDSCAPE ARCHITECTS WAS ALREADY A LITTLE GLOSSIER THAN MOST GARDEN TITLES BUT STRUGGLED ALONG WITH A CIRCULATION OF ABOUT 75000 AND A MERE SMATTERING OF NONGARDEN ADS BEFORE MEIGHER BOUGHT IT THE MAGAZINE HAD NEVER SOLD MORE THAN 30 PAGES OF ADS PER ISSUE ITS PUBLISHER SAYS BUT GARDEN DESIGN'S FIRST REDESIGNED ISSUE CONTAINS 56 AD PAGES FULLPAGE ADS WERE TAKEN BY AMERICAN EXPRESS CHIVAS REGAL AND MERCEDESBENZ AMONG OTHERS RARELY SEEN IN GARDENING PUBLICATIONS ALL PARTIALPAGE ADS ARE GROUPED IN A SPECIAL GREEN MARKET AD SECTION AT THE BACK THUS ARTICLES ABOUT SUCH TOPICS AS WHAT TO PLANT INSTEAD OF A LAWN INCLUDE STUNNING PHOTOGRAPHS SPLASHED ACROSS SINGLE AND DOUBLE PAGES IT'S TOO SOON TO TELL WHETHER SUCH TOPDRAWER ADVERTISERS WILL RETURN FOR FUTURE BIMONTHLY ISSUES BUT MR MEIGHER THINKS THEY'LL BE ATTRACTED PARTLY BY A CRACK VETERAN STAFF THAT INCLUDES NEW EDITOR IN CHIEF DOROTHY KALINS FOUNDING EDITOR OF HIGHLY SUCCESSFUL METROPOLITAN HOME MEREDITH'S STRENGTHS ARE VERY DIFFERENT WITH ITS VAST SUBSCRIBER DATABASE AND EXHAUSTIVE RESEARCH THE COMPANY'S KNOWLEDGE OF MIDDLEAMERICAN HOMEOWNERS IS UNSURPASSED THE PUBLISHER CAN PROMOTE ANY NEW TITLE EASILY TO THE 76 MILLION SUBSCRIBERS OF BETTER HOMES & GARDENS PLUS IT IS IN THE PROCESS OF INSTALLING ITS OWN GARDEN DEPARTMENTS AT WALMART STORES ACROSS THE COUNTRY AND THE COMPANY IS TAKING ITS TIME ON THE NEW TITLE SPENDING LOTS OF MONEY ON FOCUS GROUPS AND PROTOTYPES OUR RESEARCH SHOWS THAT CONSUMERS CRAVE BASIC INFORMATION IN A SOPHISTICATED PACKAGE SAYS MR LITTLE OF MEREDITH WE DON'T BELIEVE THERE IS ENOUGH ADVERTISING TO SUPPORT A BIG MAINSTREAM GARDENING MAGAZINE BUT THAT IF WE CAN ATTRACT A MASS ENOUGH AUDIENCE WE'LL DO WELL MEREDITH ALREADY IS PUSHING AHEAD ON OTHER FRONTS TO SATISFY ITS PERCEPTION THAT CONSUMERS ARE THIRSTY FOR GARDENING HELP AS OF THIS MONTH'S ISSUE OF FLAGSHIP BETTER HOMES & GARDENS SUBSCRIBERS CAN INDICATE WHETHER THEY WANT THE STANDARD MAGAZINE OR AN ENHANCED GARDENING VERSION THAT INCLUDES AT LEAST EIGHT EXTRA PAGES ON GARDENING A MONTH LIKE MANY PUBLISHERS IN THE SHELTER CATEGORY MEREDITH HAS LONG DONE ANNUAL ONESHOT ISSUES ON GARDENING BUT ONE SUCH EXPERIMENT COUNTRY HOME COUNTRY GARDENS RECENTLY BECAME A FULLBLOWN MAGAZINE PUBLISHED QUARTERLY OTHER GARDENING PUBLICATIONS ARE BRANCHING OUT ORGANIC GARDENING OWNED BY RODALE PRESS INC OF EMMAUS PA IS TESTING ORGANIC FLOWER GARDENING OUT THIS YEAR FOR THE FIRST TIME BUT SCOTT OVERHOLT ASSOCIATE PUBLISHER OF ORGANIC GARDENING THINKS THE NEW ENTRANTS WILL SOON SEE JUST HOW TOUGH THIS CATEGORY CAN BE IT HAS BEEN NOTORIOUSLY DIFFICULT TO PUBLISH A PROFITABLE GARDENING MAGAZINE SAYS MR OVERHOLT SOME MASS ADVERTISERS LIKE SEARS NOW PREFER TO ADVERTISE USING THINGS LIKE DIRECTMAIL FLYERS INSTEAD OF MAGAZINES AND MANY FANCY ADVERTISERS DON'T LIKE OUR SCATTERED DEMOGRAPHICS WE ATTRACT MEN AND WOMEN AND YOUNG AND OLD AND WEALTHY AND MIDDLECLASS LOTS OF ADVERTISERS WANT TO TARGET MORE NARROWLY THAN THAT ADDS JOHN KLINGEL HEAD OF MAGAZINE DEVELOPMENT FOR TIME INC VENTURES A UNIT OF TIME WARNER INC OF NEW YORK WE COULD NEVER FIGURE OUT HOW TO MAKE MONEY IN GARDEN MAGAZINES FOR SOME ODD REASON IT'S LIKE COMPUTER AND MEDICAL MAGAZINES A CASE WHERE THE DEMOGRAPHICS ARE GREAT BUT ADVERTISERS DON'T SEEM TO LIKE THE ENVIRONMENT IF MEIGHER AND MEREDITH BREAK THROUGH THERE WILL BE LOTS MORE COMPETITORS ACCOUNT SWITCH PEPSICO'S INTERNATIONAL FOODS UNIT WHICH SELECTED YOUNG & RUBICAM'S LONDON OFFICE A FEW MONTHS AGO TO LAUNCH ITS DORITO BRAND IN THE UNITED KINGDOM THIS SPRING REASSIGNED THE PROJECT TO OMNICOM GROUP'S BBDO NEW YORK INDUSTRY EXECUTIVES SAID PEPSICO OFFICIALS COULDN'T BE REACHED Y&R SAID HOWEVER THAT IT WILL REMAIN ON THE ESTIMATED 80 MILLION CAMPAIGN PLANNED FOR EUROPE BUT DECLINED TO ELABORATE NEC OMNICOM GROUP'S DDB NEEDHAM SAID IT HAS WITHDRAWN FROM NEC TECHNOLOGIES' REVIEW OF ITS ESTIMATED 35 MILLION COMPUTER ACCOUNT DDB IS THE INCUMBENT ON THE ACCOUNT NEC BASED IN BOXBOROUGH MASS IS A UNIT OF NEC CORP OF TOKYO SMOKING THE AMERICAN MEDICAL ASSOCIATION ASKED MAJOR LEAGUE BASEBALL TEAMS TO BAN SMOKING AND BILLBOARD ADVERTISING FOR CIGARETTES IN THEIR 28 BALLPARKS NOTING THAT CHILDREN ATTENDING THE GAMES WILL BE SIGNIFICANTLY EXPOSED TO SECONDHAND SMOKE ALLAN H SELIG CHAIRMAN OF BASEBALL'S EXECUTIVE COUNCIL AND OWNER OF THE MILWAUKEE BREWERS COULDN'T BE REACHED 9404050056 940405 WHO'S NEWS LASER VIDEO NETWORK INC LASER VIDEO NETWORK INC NEW YORK PETER KAUFF 50 YEARS OLD WHO IS CHAIRMAN OF THE INTERACTIVE MEDIA COMPANY WAS NAMED TO THE ADDITIONAL POSITION OF CHIEF EXECUTIVE OFFICER 9404050054 940405 LETTERS TO THE EDITOR LOCKHEED PURCHASE WAS GOOD STRATEGY YOUR MARCH 14 PAGEONE ARTICLE BATTLE OVER GRUMMAN ESCALATES THE DOGFIGHT IN DEFENSE INDUSTRY CREATES THE MISCONCEPTION THAT LOCKHEED'S ACQUISITION IN 1993 OF GENERAL DYNAMIC'S FORT WORTH FIGHTER AIRCRAFT DIVISION HAS UNRAVELED BADLY NOT TRUE IN FACT THE ACQUISITION HAS BEEN ADDITIVE BY ANY MEASURE AND OUR SHAREHOLDERS EARNED A RETURN IN 1993 WELL ABOVE THAT FOR THE S&P 500 MOREOVER THE FORT WORTH BUSINESS HAS CONTRIBUTED SUBSTANTIAL POSITIVE EARNINGS AND CASH FLOW IT IS ALSO NOTABLE THAT FORT WORTH'S FLAGSHIP PROGRAM THE HIGHPERFORMANCE MULTIROLE F16 FIGHTER HAS BEEN SELECTED BY 18 GOVERNMENTS FOR ITS QUALITY CAPABILITY AND VALUE LOCKHEED NOW HAS FIRM ORDERS FOR NEARLY 600 F16S TO BE DELIVERED BY THE TURN OF THE CENTURY THE LARGEST BACKLOG OF ANY TACTICAL AIRCRAFT PROGRAM IN THE WORLD IN EVALUATING THE FORT WORTH ACQUISITION LOCKHEED TOOK A CONSERVATIVE VIEW OF THE F16 BACKLOG AND POTENTIAL FUTURE ORDERS WE ALSO CONSIDERED THE TECHNICAL STRENGTHS AT FORT WORTH THAT WOULD COMPLEMENT OTHER LOCKHEED PROGRAMS INCLUDING THE F22 AIRSUPERIORITY FIGHTER CURRENTLY IN DEVELOPMENT AND WE ARE VERY PLEASED WITH THE RESULTING SYNERGIES AS LOCKHEED CELEBRATES THE FIRST ANNIVERSARY OF THE FORT WORTH ACQUISITION IT IS CLEAR THAT IT WAS A STRATEGICALLY AND FINANCIALLY SOUND DECISION AND IMPROVES OUR COMPETITIVE POSITION IN THE MILITARY AIRCRAFT MARKET 9404050053 940405 BUSINESS BRIEF ASK GROUP INC SOFTWARE MAKER WILL TAKE A CHARGE FOR ITS 3RD QUARTER ASK GROUP INC SAID IT WILL TAKE A RESTRUCTURING CHARGE OF AS MUCH AS 52 MILLION AND POST AN UNSPECIFIED OPERATING LOSS FOR ITS THIRD QUARTER ENDED MARCH 31 THE SANTA CLARA CALIF SOFTWARE MAKER SAID THE CHARGE REFLECTS EXPENSES INCURRED IN CLOSING EXCESS FACILITIES STAFF REDUCTIONS ASSET WRITEOFFS AND AN INCREASE IN ITS ALLOWANCE FOR DOUBTFUL ACCOUNTS ASK WHICH HAS SEEN ITS SALES SLUMP THIS YEAR SAID IT HAD 20 MILLION IN CASH AS OF MARCH 31 AND EXPECTS TO SIGN NEW LOAN AGREEMENTS WITH ITS LENDERS THIS MONTH 9404050052 940405 REVIEW & OUTLOOK EDITORIAL BILINGUAL OR BUST ONE OF THE FIRST THINGS MOST NEWCOMERS TO THE US DO IS LEARN TO SPEAK ENGLISH BUT IT COULD TAKE A LITTLE LONGER FOR THOSE LANDING IN NEW JERSEY WHERE BUREAUCRATS DECIDE WHO GETS TO BE TAUGHT IN ENGLISH AND WHO DOESN'T LATELY SPANISHSPEAKING IMMIGRANTS IN PRINCETON HAVE CONCLUDED THEY DON'T LIKE THE BILINGUAL BUREAUCRACY'S DECISIONS THE PARENTS WONDER WHY THEIR CHILDREN ALONE ARE REQUIRED TO ENROLL IN A PROGRAM SEPARATING THEM FROM THE STUDENT MAINSTREAM THE ENGLISHSPEAKING WORLD ONE MOTHER WHOSE REMARKS WERE REPORTED IN THE PRINCETON PACKET A COMMUNITY PAPER TOLD OF HER HOPES WHEN THE FAMILY MOVED FROM ARGENTINA THAT THE CHILDREN WOULD INTEGRATE AND LEARN ENGLISH AND OF HER DISMAY ON LEARNING THAT INSTEAD THEY WERE TO BE SEGREGATED BY LANGUAGE AND CULTURE ANOTHER TOLD OF HAVING HER TWO CHILDREN BOTH BORN IN THE US PUT INTO BILINGUAL CLASSES WITHOUT HER PERMISSION AND KEPT THERE FOR TWO YEARS ACCORDING TO NEW JERSEY LAW IF THERE ARE 20 OR MORE STUDENTS IN A DISTRICT WHO SPEAK THE SAME LANGUAGE AND WHO HAVE LIMITED ENGLISH PROFICIENCY THEY MUST ENTER A BILINGUAL PROGRAM REGARDLESS OF THEIR PARENTS' OR THEIR OWN WISHES THE STATE LAW ADOPTED IN 1975 REQUIRES ONLY THAT PARENTS BE NOTIFIED OF THEIR CHILD'S PLACEMENT IN THE BILINGUAL PROGRAM THE RIGHT OF CHOOSING ONE'S OWN LANGUAGE WASN'T MUCH ADVANCED WHEN AN APPEAL PROCESS WAS LATER TACKED ON WHICH IN THEORY ALLOWS FOR WAYS TO GET A CHILD RELEASED FROM BILINGUAL CLASSES A PROCESS SO BYZANTINE THAT IT WOULD DISCOURAGE THE MOST DETERMINED AND SELFASSURED PARENT IMMIGRANT OR NATIVEBORN SOME PARENTS TO BE SURE APPROVE OF THE BILINGUAL CLASSES THE PARENTS WHO OBJECT DO SO IN PART BECAUSE OF THEIR CONCERN WHICH MANY EDUCATORS CONSIDER WELLFOUNDED THAT BILINGUAL EDUCATION RETARDS ACADEMIC PROGRESS SOME IN PRINCETON ARE SO ANXIOUS TO KEEP THEIR CHILDREN FROM BEING PLACED IN A BILINGUAL PROGRAM THAT THEY CONCEAL THE FACT THAT THE LANGUAGE SPOKEN AT HOME IS SPANISH ABOVE ALL THE ISSUE THAT HAS ROUSED THE LATINO PARENTS IS THEIR LACK OF CHOICE AND THE ATTITUDE EXEMPLIFIED IN THE COMMENT OF THE BILINGUAL TEACHER WHO TOLD A SCHOOL BOARD THAT GIVING PARENTS A CHOICE MIGHT SOUND LOGICAL BUT THAT PARENTS OF MANY BILINGUAL STUDENTS DON'T REALLY UNDERSTAND THE PROGRAM WE SUSPECT THAT THE PARENTS UNDERSTAND THE PROGRAM VERY WELL WELL ENOUGH TO KNOW WHEN THEY ARE GETTING SHORT SHRIFT AND CONDESCENSION FROM THE ENTRENCHED BUREAUCRACY RUNNING IT THE PARENTS ALSO KNOW IT IS FAR FROM EASY TO EXTRICATE A CHILD FROM THE BILINGUAL PROGRAM ONCE PLACED IN ONE THE DISPUTE IN PRINCETON RELATES TO A BROADER ISSUE GAINING RESONANCE AROUND THE COUNTRY TO WHAT EXTENT ARE PARENTS TO BE PERMITTED A SAY IN THE WAY SCHOOLS EDUCATE THEIR CHILDREN BEYOND THE HOT ISSUE OF STUDENT ACHIEVEMENT LEVELS WE SUSPECT A LOT OF THE OUTSIDE PRESSURE RELATES DIRECTLY TO THE WAY THE SCHOOLS ESTABLISHMENT HAS TRIED TO ENLARGE ITS FRANCHISE AFTER ALL THIS IS AN ERA THAT HAS SEEN SCHOOLS PUT INTO SERVICE AS CONDOMDISTRIBUTION CENTERS IT'S INSTRUCTIVE THAT THE PEOPLE FIGHTING THE ESTABLISHMENT IN PRINCETON ARE IMMIGRANTS OUR IMPRESSION IS THAT IMMIGRANT PARENTS HAVE LITTLE PATIENCE WITH ANY SCHOOL POLICIES OR THEORIES THAT SEEM TO DIVERT THEIR CHILDREN FROM ACQUIRING THE SOLID ACADEMIC GROUNDING NEEDED TO MOVE FORWARD ORDERING STUDENTS INTO A BILINGUAL CLASS SOUNDS LIKE A SURE WAY TO CREATE A LOT OF IMPATIENT IMMIGRANTS 9404050051 940405 BUSINESS BRIEF PRECISION SYSTEMS INC FISCAL THIRDQUARTER CHARGE JOB CUTS OF 53 ARE PLANNED PRECISION SYSTEMS INC SAID IT WOULD TAKE A 1 MILLION CHARGE AND LAY OFF 75 EMPLOYEES OR 53 OF ITS WORK FORCE IN ITS FISCAL THIRD QUARTER AS PART OF A CORPORATE RESTRUCTURING THE ST PETERSBURG FLA COMPANY WHICH MAKES INTERACTIVE VOICE RESPONSE EQUIPMENT REPORTED A NET LOSS OF 33 MILLION OR 38 CENTS A SHARE ON 22 MILLION IN REVENUE FOR THE SECOND QUARTER ENDED FEB 28 A YEAR EARLIER THE COMPANY REPORTED NET INCOME OF 166000 OR TWO CENTS A SHARE ON 52 MILLION IN REVENUE THE SECOND QUARTER RESULTS CONTINUE TO REFLECT EXCESSIVELY HIGH COSTS CARRIED OVER FROM THE COMPANY'S PREVIOUS BUSINESS PLAN ACCORDING TO RUSSELL PILLAR PRESIDENT AND CHIEF EXECUTIVE OFFICER MR PILLAR SAID THE RESTRUCTURING IN ADDITION TO PREVIOUSLY ANNOUNCED CHANGES SHOULD SAVE THE FIRM ABOUT 52 MILLION ANNUALLY 9404050050 940405 MONDAY'S MARKETS INDUSTRIALS SINK 4261 AMID BONDPRICE PLUNGE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS CONTINUED TO BAIL OUT OF THE STOCK MARKET AMID ANOTHER PLUNGE IN BOND PRICES THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 4261 POINTS TO 359335 IT MANAGED TO RECOVER SOMEWHAT FROM A NEARLY 84POINT DECLINE IN THE MORNING STOCK PRICES HAVE SLID ON SIX OF THE PAST SEVEN TRADING DAYS WITH THE INDUSTRIAL AVERAGE SHEDDING 71 DURING THE PERIOD THE INDUSTRIAL AVERAGE IS 97 BELOW ITS HIGH OF 397836 SET ON JAN STANDARD & POOR'S 500STOCK INDEX DROPPED 685 TO 43892 AND THE NASDAQ COMPOSITE INDEX SLID 1605 TO 72741 TRADING BEGAN ON A WARY NOTE AFTER A WEEKEND FILLED WITH DIRE FORECASTS YESTERDAY WAS THE FIRST CHANCE STOCK INVESTORS HAD TO RESPOND TO A DEBILITATING SLIDE IN BOND PRICES FRIDAY WHEN STOCK MARKETS WERE CLOSED FOR GOOD FRIDAY IF YOU READ THE PAPERS AND SAW TV OVER THE WEEKEND YOU THOUGHT A CRASH SCENARIO WAS BEING PAINTED SAID TOM GALLAGHER HEAD OF EQUITY TRADING AT OPPENHEIMER BUT IT WAS NOWHERE NEAR THAT STILL THE STOCK MARKET OPENED SLOWLY THREE OF THE INDUSTRIAL AVERAGE'S 30 COMPONENT STOCKS WERE AVAILABLE FOR TRADING AT THE OPENING WHEN THE AVERAGE SLIPPED 10 POINTS IN THE FIRST THREE MINUTES THE LOSSES REFLECTED ACTIVITY IN A MERE SEVEN STOCKS ALL THE DOW INDUSTRIAL STOCKS WERE AVAILABLE FOR TRADING BY 1020 AM ANALYSTS SAID THAT AS LONG AS BOND PRICES KEEP FALLING JITTERY INVESTORS WILL CONTINUE TO FLEE FROM THE STOCK MARKET THE BOND MARKET HAS BEEN REMARKABLY UNSTABLE IN RECENT SESSIONS WITH THE TREASURY'S 30YEAR ISSUE PLUNGING NEARLY FOUR POINTS IN THE PAST TWO TRADING DAYS DRIVING THE YIELD TO 740 FROM 708 ON THURSDAY BONDS CONTINUED THEIR DIVE YESTERDAY DESPITE THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S INDEX SHOWINGPRICE INCREASES IN MARCH HAD SLOWED NOBODY'S GOING TO BUY STOCKS WHEN BONDS ARE DROPPING A POINT OR MORE A DAY SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ MR MCALINDEN WORRIES THAT THE PERSISTENT STEEP DECLINES IN THE STOCK MARKET MAY FINALLY UNNERVE MUTUALFUND INVESTORS WHO FOR THE MOST PART HAVE STOOD PAT SO FAR A MASS EXODUS AMONG THESE INVESTORS WOULD EXTEND THE MARKET'S LOSSES FAR BEYOND CURRENT LEVELS IF WE KEEP HAVING DAYS LIKE THIS THE REAL RISK IS THAT WE'LL GET A WAVE OF MUTUALFUND REDEMPTIONS MR MCALINDEN SAID SOME ANALYSTS SAY THE SELLING MAY BE REACHING AN END MICHAEL R LATRONICA DIRECTOR OF RESEARCH AT GRUNTAL SAID STOCK PRICES COULD RALLY SOON ESPECIALLY AS FIRSTQUARTER EARNINGS ARE EXPECTED TO BE QUITE STRONG WE'RE AT A POINT WHERE THE MARKET COULD GET A VERY STRONG RALLY OF SEVERAL HUNDRED POINTS ON THE DOW HE SAID WILLIAM C MATTISON JR PRESIDENT OF GERARD KLAUER MATTISON AN INSTITUTIONAL RESEARCH FIRM SAID STOCK PRICES ARE MERELY RETURNING TO REASONABLE LEVELS AFTER THE LONG BULL MARKET LEFT THEM FAR TOO HIGH YOU CAN TALK ABOUT INTEREST RATES AND WHITEWATER BUT REALLY THE MARKET WAS LOOKING FOR AN EXCUSE TO COME BACK TO A MORE REALISTIC VALUE MR MATTISON SAID HE SAID THE MARKET DOWNTURN MAY NOT BE OVER AS DECLINES ARE USUALLY AS OVERDONE AS ADVANCES THEY DON'T RING A BELL AT THE BOTTOM USUALLY THE PENDULUM SWINGS TOO FAR IN BOTH DIRECTIONS HE SAID OVERSEAS ASIA'S SMALLER STOCK MARKETS PLUNGED AMID FEARS OF A SELLOFF IN US STOCKS AFTER FRIDAY'S DROP IN BOND PRICES MALAYSIA FELL 33 BANGKOK 29 THE PHILIPPINES 21 AND SINGAPORE 2 THE HONG KONG MARKET WAS CLOSED JAPANESE STOCKS SLIPPED 08 MOST EUROPEAN STOCK MARKETS WERE CLOSED FOR A HOLIDAY IN MEXICO THE BOLSA'S IPC INDEX TUMBLED 14489 POINTS OR 6 TO 226549 MEXICAN SHARES HAVE PLUNGED 21 FROM THE ALLTIME HIGH HIT IN EARLY FEBRUARY ALVARO DE LA MACORRA HEAD TRADER AT MEXICAN BROKER PROBURSA SAID INVESTORS HAVE A GLOOMY OUTLOOK FOR MEXICO'S FIRSTQUARTER PROFITS HE EXPECTS THE IPC INDEX TO SLIDE TO AT LEAST 2200 AND IF EARNINGS ARE WORSE THAN EXPECTED TO 2000 ASIDE FROM EARNINGS INVESTORS ALSO ARE NERVOUS ABOUT MEXICO'S POLITICAL STABILITY YESTERDAY THE MEXICAN GOVERNMENT SAID THAT AT LEAST SEVEN PEOPLE WERE INVOLVED IN THE ASSASSINATION OF PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 094 TO 11047 IN MAJOR MARKET ACTION STOCK PRICES TUMBLED VOLUME TOTALED 3429 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 2121 ISSUES FELL AND 376 ROSE THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16973 MARKS AND 10320 YEN COMPARED WITH 16967 MARKS AND 10363 YEN FRIDAY 9404050049 940405 CONTINENTAL CUTS FARES RESTRICTIONS ON EUROPE ROUTES BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL CONTINENTAL AIRLINES FIRED THE FIRST SHOT IN THE ANNUAL SPRING TRANSATLANTIC FARE WAR BUT ADDED A NEW WRINKLE BY ELIMINATING ALL OF THE RESTRICTIONS THAT USUALLY APPLY FOR TICKETS TO EUROPE THE HOUSTONBASED AIRLINE SAID THAT TICKETS PURCHASED BY APRIL 21 FOR TRAVEL TO EUROPE ARE REFUNDABLE AND HAVE NO MINIMUM MAXIMUM OR SATURDAYNIGHT STAY REQUIREMENT FARES START AT 249 EACH WAY FROM CONTINENTAL'S HUB IN NEWARK NJ FOR TRAVEL THROUGH MAY AND ARE SLIGHTLY HIGHER THE FARTHER WEST IN THE US TRAFFIC ORIGINATES DURING THE BUSY TRAVEL MONTHS OF JUNE THROUGH SEPTEMBER THE FARES WILL BE SLIGHTLY HIGHER AND CONTINENTAL ALSO WILL CHARGE 20 MORE EACH WAY FOR TRAVEL ON THE WEEKEND WHILE THESE DISCOUNTED TICKETS ARE ROUGHLY IN LINE WITH WHAT AIRLINES HAVE OFFERED IN PAST YEARS THE LACK OF RESTRICTIONS IS UNUSUAL AND RUNS THE RISK OF ATTRACTING LASTMINUTE BUSINESS FLYERS WHO'D OTHERWISE BE WILLING TO PAY FAR MORE BECAUSE THEY MUST TRAVEL THE MOVE APPEARS TO BE AN INTERNATIONAL OUTGROWTH OF WHAT CONTINENTAL HAS BEEN EXPERIMENTING WITH DOMESTICALLY ITS CUTRATE CALITE FLIGHTS WHOSE FARES DON'T VARY MUCH BETWEEN ADVANCE PURCHASE AND WALKUP FARES THE SALE IS LIMITED BECAUSE CONTINENTAL FLIES TO ONLY FIVE EUROPEAN DESTINATIONS LONDON PARIS FRANKFURT AND MUNICH IN GERMANY AND MADRID UAL CORP'S UNITED AND AMR CORP'S AMERICAN AIRLINES BOTH SAID THEY'D MATCH THE FARES IN COMPETITIVE MARKETS BUT AN AMERICAN SPOKESMAN SAID THE COMPANY WOULD STUDY DETAILS BEFORE DECIDING WHETHER TO EXPAND THE FARE TO OTHER MARKETS OTHER CARRIERS DIDN'T REACT IMMEDIATELY SEPARATELY DELTA AIR LINES SAID IT WOULD LET PASSENGERS FLYING OUT OF ITS DALLAS/FORT WORTH HUB TAKE A COMPANION ALONG FOR FREE DURING OFFPEAK TRAVEL PERIODS OR FOR HALFPRICE DURING PEAK TIMES THE ROUNDTRIPFARE OFFERS ARE AVAILABLE ON NONSTOP FLIGHTS TO 21 CITIES THROUGH MAY 31 DELTA IS THE SECONDLARGEST CARRIER IN DALLAS/FORT WORTH TRAILING AMERICAN AIRLINES BY A SIZABLE MARGIN PEAK TRAVEL IS FROM NOON SATURDAY TO NOON THURSDAY TICKETS MUST BE PURCHASED BY APRIL 19 A SPOKESMAN FOR AMERICAN AIRLINES DELTA'S RIVAL AT THE DALLAS/FORT WORTH HUB SAID THE CARRIER WOULD MATCH THE COMPANION FARES 9404050048 940405 POLITICS & POLICY TYSON FOODS TAKEOVER OFFER TRIGGERS ANOTHER INSIDERTRADING INVESTIGATION BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SECURITIES AND EXCHANGE COMMISSION AND NASD OFFICIALS ARE LOOKING INTO POSSIBLE INSIDER TRADING IN THE STOCK OF A TYSON FOODS INC TAKEOVER TARGET ACCORDING TO PEOPLE FAMILIAR WITH THE INQUIRIES MARKET REGULATORS FOR THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH OVERSEES THE NASDAQ STOCK MARKET HAVE IDENTIFIED A LONG LIST OF INVESTORS INCLUDING A SCORE FROM ARKANSAS WHO PURCHASED WLR FOODS INC STOCK IN JANUARY THE PURCHASES OCCURRED SHORTLY BEFORE ARKANSASBASED TYSON OFFERED TO ACQUIRE THE BROADWAY VA POULTRY PROCESSOR FOR 329 MILLION THE SEC'S PHILADELPHIA REGIONAL OFFICE MEANWHILE HAS BEGUN AN INVESTIGATION OF ITS OWN SEPARATELY THE SEC RECENTLY CONTACTED WILLIAM KENNEDY III ASSOCIATE WHITE HOUSE COUNSEL AND FORMER MANAGING PARTNER OF THE ROSE LAW FIRM TO DISCUSS ANOTHER INSIDERTRADING INVESTIGATION INVOLVING A TYSON ACQUISITION MR KENNEDY'S UNCLE IS ONE OF THE INVESTORS WHO PURCHASED ARCTIC ALASKA FISHERIES CORP STOCK IN JUNE 1992 JUST BEFORE TYSON ANNOUNCED AN AGREEMENT TO BUY THE SEAFOOD COMPANY MR KENNEDY HAS AGREED TO COOPERATE WITH THE SEC SAID MARK GEARAN WHITE HOUSE COMMUNICATIONS DIRECTOR THE ROSE FIRM WORKED ON THE ARCTIC ALASKA ACQUISITION BUT MR KENNEDY HAS SAID HE WASN'T INVOLVED IN THE MATTER AND DIDN'T KNOW ANYTHING ABOUT HIS UNCLE'S TRADING LAST WEEK JAMES BLAIR TYSON'S GENERAL COUNSEL SAID THAT ROSE ISN'T ONE OF THE LAW FIRMS ADVISING TYSON ON WHAT HAS TURNED INTO A HOSTILE TAKEOVER BID FOR WLR FOODS WILLIAM MCLUCAS THE SEC'S ENFORCEMENT DIRECTOR WOULD NEITHER CONFIRM NOR DENY THAT SUSPICIOUS TRADING IN ARCTIC ALASKA AND WLR FOODS SHARES IS UNDER INVESTIGATION THE NASDAQ MARKETSURVEILLANCE UNIT CONTACTED WLR FOODS IN FEBRUARY AFTER DETECTING A SUSPICIOUS SURGE OF WLR STOCKBUYING ON JAN 24 WHEN 67400 SHARES WERE TRADED ON NASDAQ MORE THAN THREE TIMES THE NORMAL VOLUME AFTER THE STOCK CLOSED THAT DAY AT 19 A SHARE TYSON SENT WLR EXECUTIVES A PROPOSAL TO BUY THE COMPANY FOR 30 A SHARE OR 329 MILLION THE FOLLOWING DAY 39 MILLION SHARES CHANGED HANDS IN A TRADING FRENZY THAT SENT WLR'S SHARE PRICE SOARING 950 TO A CLOSING PRICE OF 2850 SEC AND NASDAQ OFFICIALS ALSO ARE LOOKING INTO TWO OTHER SPIKES IN WLR TRADING NEARLY 43000 SHARES WERE TRADED ON JAN 3 WHEN DON TYSON CHAIRMAN OF THE WORLD'S LARGEST POULTRY PROCESSOR TELEPHONED WLR FOODS PRESIDENT JAMES KEELER TO DISCUSS A POSSIBLE BUSINESS COMBINATION ACCORDING TO TYSON'S FORMAL OFFER TO PURCHASE MORE THAN 57000 SHARES WERE TRADED ON JAN 11 THE DAY BEFORE MESSRS TYSON AND KEELER MET IN WASHINGTON FOR FURTHER TALKS FOR MOST OF JANUARY THE STOCK HOVERED BETWEEN 1850 AND 1925 A SHARE ACCORDING TO TRADING RECORDS IN SPRINGDALE ARK WHERE TYSON HAS ITS HEADQUARTERS COMPANY SPOKESMAN ARCHIE SCHAFFER DECLINED TO COMMENT ON THE WLR FOODS AND ARCTIC ALASKA INQUIRIES GAIL PRICE SPOKESWOMAN FOR WLR FOODS SAID NASDAQ OFFICIALS HAVE ASKED FOR NAMES OF PEOPLE WHO MAY HAVE KNOWN ABOUT THE IMPENDING TYSON OFFER THE COMPANY MEANTIME HAS ASKED STEPHENS INC A MAJOR SECURITIES FIRM BASED IN LITTLE ROCK ARK FOR INFORMATION ABOUT ANY TRADES IN WLR SHARES IT MAY HAVE EXECUTED SHE ADDED NASDAQ'S LIST OF INVESTORS WHO BOUGHT WLR STOCK IN ADVANCE INCLUDES 13 WHO LIVE IN THE VICINITY OF FAYETTEVILLE AND SPRINGDALE ACCORDING TO PEOPLE FAMILIAR WITH THE INQUIRY THEY DIDN'T IDENTIFY THOSE INVESTORS 9404050047 940405 BUSINESS BRIEF TRAVELERS INC SMITH BARNEY UNIT IS SUED OVER FINANCING IN FLORIDA SMITH BARNEY SHEARSON INC WAS SUED BY AN INVESTMENTBANKING FIRM WHICH CHARGED THAT SMITH BARNEY FAILED TO SHARE AS PROMISED THE FEES RESULTING FROM A MUNICIPAL FINANCING THE FIRM HOWARD GARY & CO IN MIAMI SAID IN A SUIT FILED LAST WEEK IN US DISTRICT COURT IN MIAMI THAT SMITH BARNEY HAD SOLICITED HOWARD GARY'S HELP IN SEEKING TO UNDERWRITE TWO BOND ISSUES FOR DADE COUNTY FLA ACCORDING TO THE COMPLAINT SMITH BARNEY PLEDGED TO SPLIT EQUALLY ALL REVENUES EARNED BY THE TWO FIRMS BUT AFTER THE FINANCING WAS COMPLETED IN EARLY FEBRUARY SMITH BARNEY OFFERED HOWARD GARY ABOUT 800000 ACCORDING TO HOWARD V GARY PRESIDENT AND CHIEF EXECUTIVE OFFICER THE CORRECT FEE MR GARY SAID IS IN THE RANGE OF 5 MILLION OR MORE THE SUIT SEEKS COMPENSATORY DAMAGES IN EXCESS OF 5 MILLION IN NEW YORK A SPOKESMAN FOR SMITH BARNEY A UNIT OF TRAVELERS INC SAID THE COMPANY HAD RECEIVED A COPY OF THE SUIT BUT DECLINED TO COMMENT FURTHER 9404050046 940405 NORTHROP OFFER OF 217 BILLION WINS GRUMMAN KRESA DEFENDS SWEETER BID THOUGH MARTIN MARIETTA DIDN'T SUBMIT NEW ONE BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES NORTHROP CORP WON THE BIDDING WAR FOR GRUMMAN CORP WITH A 62ASHARE OFFER AND QUICKLY BEGAN DEFENDING ITS STRATEGY OF INTEGRATING AIRCRAFT AND ELECTRONICS IN THE CONSOLIDATING ARMS INDUSTRY AT THE SAME TIME NORTHROP CHAIRMAN KENT KRESA DEFENDED THE 217 BILLION PRICE WHICH WAS 7 A SHARE HIGHER THAN THAT OFFERED BY THE ONLY OTHER BIDDER MARTIN MARIETTA CORP NORTHROP'S VICTORY WAS THE CLIMAX OF A MONTHLONG BATTLE OF NERVES BETWEEN THE RIVAL SUITORS NORTHROP SUBMITTED THE ONLY NEW OFFER UNDER GRUMMAN'S SEALEDBID AUCTION RULES BUT WAS SELECTED LATE SUNDAY BY GRUMMAN AFTER LENGTHY NEGOTIATIONS OVER THE FINAL PRICE MR KRESA SAID THAT THE COMPANY TO BE CALLED NORTHROP GRUMMAN CORP WHICH WILL COMBINE THE NATION'S SECONDLARGEST AND 12THLARGEST DEFENSE CONTRACTORS WILL BECOME A MEMBER OF THE NATION'S DEFENSE INDUSTRIAL TEAM WELL INTO THE 21ST CENTURY ITS CORE BUSINESS WILL BE RECONNAISSANCE STRIKE AND BATTLE MANAGEMENT SYSTEMS WHICH INVOLVES THE INTEGRATION OF WEAPONS LIKE THE NORTHROP B2 STEALTH BOMBER GRUMMAN'S AIRBORNE BATTLEFIELD SURVEILLANCE SYSTEMS AND ELECTRONICS AS WELL AS NORTHROP'S PRECISION MUNITIONS GRUMMAN AND NORTHROP ARE ALSO BOTH ACTIVE IN THE GROWING FIELD OF AIRCRAFT MODIFICATION AS NEW PROGRAMS DWINDLE IN THE POSTCOLD WAR DEFENSE INDUSTRY NORTHROP HAS BEEN FREQUENTLY DESCRIBED AS HAVING TO CHOOSE BETWEEN ACQUIRING OTHER CONTRACTORS OR BEING ACQUIRED ITSELF INDEED BEFORE YESTERDAY'S ANNOUNCEMENT NORTHROP HAD TRIED UNSUCCESSFULLY THREE TIMES IN RECENT YEARS TO BUY UNITS OF OTHER COMPANIES MR KRESA INSISTED THAT NORTHROP ISN'T FOR SALE AND ADDED WE'RE GOING TO MAKE OTHER ACQUISITIONS OVER TIME THOUGH HE DIDN'T NAME POTENTIAL TARGETS NORTHROP CONTINUING TO COURT GRUMMAN EMPLOYEES WHO CONTROL A TOTAL OF ABOUT 40 OF THE BETHPAGE NY COMPANY ALSO SAID IT WOULD CONSIDER PUTTING THE HEADQUARTERS OF NORTHROP GRUMMAN'S ELECTRONICS BUSINESS ON LONG ISLAND MR KRESA DECLINED TO SPECULATE ON THE NUMBER OF LAYOFFS THAT WOULD RESULT WHEN NORTHROP'S 30000 WORKERS AND GRUMMAN'S 17000 WORKERS ARE COMBINED SAYING THE NUMBER WOULD BE SMALL COMPARED WITH REDUCTIONS ALREADY PLANNED AT BOTH COMPANIES TO REFLECT DECLINING PROGRAMS NORTHROP IS ELIMINATING 3000 JOBS THIS YEAR IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GRUMMAN SHARES FELL 3 TO 61625 AS SOME INVESTORS EXPRESSED DISAPPOINTMENT THAT THE BIDDING DIDN'T GO HIGHER NORTHROP SHARES SLID 225 TO 37625 REFLECTING CONCERNS ABOUT NORTHROP'S FINANCIAL PROSPECTS AFTER THE ACQUISITION WHILE MARTIN MARIETTA FELL 1375 TO 42625 MR KRESA SAID HE EXPECTED THE ACQUISITION TO BE NEUTRAL TO NORTHROP'S EARNINGS THIS YEAR AND INCREASINGLY ACCRETIVE STARTING IN 1995 THE COMBINED COMPANY WILL HAVE ANNUAL SALES OF OVER 8 BILLION CASH FLOW WILL REMAIN STRONG WITH NORTHROP STEADILY CUTTING THE DEBT IT TOOK ON FOR THE ACQUISITION HE SAID WE BELIEVE WE PAID A FAIR PRICE FOR THE COMPANY AT THAT VALUE MR KRESA SAID NOTING THAT NORTHROP HADN'T HAD ANY IDEA WHEN IT SUBMITTED ITS BID TO GRUMMAN THURSDAY AFTERNOON THAT MARTIN MARIETTA HAD DECIDED NOT TO SWEETEN THE 55ASHARE OR 193 BILLION OFFER IT HAD ORIGINALLY MADE IN A NEGOTIATED AGREEMENT WITH GRUMMAN ON MARCH 7 NORTHROP HAD TOPPED THAT OFFER WITH A HOSTILE 60ASHARE BID VALUED AT 204 BILLION THREE DAYS LATER IN MAKING ITS BID LAST THURSDAY NORTHROP AND ITS ADVISER SALOMON BROTHERS TOLD GRUMMAN IT WOULD OFFER AS MUCH AS 66 A SHARE IF MARTIN MARIETTA OFFERED MORE THAN 64 NORTHROP SAID IT WOULD GO EVEN HIGHER IF MARTIN MARIETTA OFFERED MORE THAN 66 ALTHOUGH IT DIDN'T SPECIFY A PRICE MR KRESA SAID NORTHROP FELT COMPELLED TO SIMULATE AN OPEN CONTEST IN ITS BID BUT NOTED THAT THE 66ASHARE FIGURE WAS A HYPOTHETICAL NUMBER THAT NEVER OCCURRED SOME CRITICS QUESTIONED WHY NORTHROP RAISED THE 60ASHARE BID THAT WAS SUPPOSED TO APPLY IF MARTIN MARIETTA DIDN'T SWEETEN ITS OWN OFFER IN THE AUCTION WE PAID A PRICE FOR PEACE ONE PERSON CLOSE TO NORTHROP SAID OF THE DECISION TO BOOST THE PRICE TO 62 LATE SUNDAY AFTERNOON BUT SOME INVESTORS CONTENDED THAT GRUMMAN AND ITS ADVISER GOLDMAN SACHS & CO COULD HAVE EXTRACTED A HIGHER BID FROM NORTHROP IF IT HAD NEGOTIATED EXCLUSIVELY WITH NORTHROP INSTEAD OF PUTTING THE COMPANY UP FOR BIDS THAT WAY THEY SAID GRUMMAN COULD HAVE EXPLOITED NORTHROP'S CONCERN THAT MARTIN MARIETTA WOULD COME IN WITH A HIGHER BID IN EXCHANGE FOR NOT HAVING TO FACE A BIDDING WAR NORTHROP MIGHT HAVE AGREED TO PAY MORE THAN 62 A SHARE BUT GRUMMAN CALLED THE REMARKS MONDAYMORNING QUARTERBACKING BY DISGRUNTLED INVESTORS SAID A SPOKESMAN WE DID THE BEST WE COULD HE POINTED OUT THAT GRUMMAN GOT NORTHROP TO RAISE ITS BID BY 2 A SHARE MOREOVER PEOPLE IN THE NORTHROP CAMP SAID THERE WAS NOTHING GRUMMAN COULD HAVE DONE SHORT OF GETTING A HIGHER BID FROM MARTIN MARIETTA TO GET NORTHROP TO BID HIGHER THAN 62 A SHARE GOLDMAN OFFICIALS DECLINED TO COMMENT INVESTOR SPECULATION THAT THE COMBINED NORTHROP GRUMMAN MIGHT ITSELF BE AN ACQUISITION TARGET SEEMED TO DISSOLVE YESTERDAY MARTIN MARIETTA THE BETHESDA MD AEROSPACE GIANT WISHED GRUMMAN WELL AND PEOPLE AT MARTIN MARIETTA SUGGESTED THE COMPANY WOULD LOOK ELSEWHERE FOR ACQUISITIONS MARTIN MARIETTA HAS RECEIVED A 50 MILLION BREAKUP FEE FROM GRUMMAN UNDER TERMS OF THE EARLIER GRUMMANMARTIN MARIETTA AGREEMENT A FEE NORTHROP SAID IT WOULDN'T CHALLENGE MR KRESA SAID NORTHROP GRUMMAN WILL EMPHASIZE FIELDS THAT HAVE GREAT POTENTIAL EVEN AS THE DEFENSE INDUSTRY SHRINKS HE SAID IT WASN'T CLEAR WHO THE COMBINED COMPANY'S MAJOR COMPETITORS WOULD BE AS IT PURSUES RECONNAISSANCE STRIKE ACTIVITY MCDONNELL DOUGLAS CORP LOCKHEED CORP AND BOEING CO ALSO MAKE MILITARY AIRCRAFT FEW SPECIFIC AIRCRAFT PROGRAMS ARE ON PENTAGON DRAWING BOARDS MR KRESA NOTED BUT WITH UPGRADES AHEAD FOR SUCH AIRCRAFT AS THE F/A18 FIGHTER THE E2C HAWKEYE SURVEILLANCE PLANE AND POSSIBLY THE B2 WE NOW SEE THAT WE CAN FULLY UTILIZE THE TREMENDOUS CAPABILITIES GRUMMAN HAS IN BOTH THE AIRPLANE AND AIRCRAFT MODIFICATION BUSINESSES HE SAID THE E2C AND GRUMMAN'S JSTARS RECONNAISSANCE AIRCRAFT PROGRAM COMBINE WELL WITH THE LONGRANGE BOMBING CAPACITY OF THE B2 ACCORDING TO MR KRESA WITH NORTHROP'S PRECISION BRILLIANT ANTITANK WEAPON OR BAT AND ITS TRISERVICE STANDOFF ATTACK MISSILE BEING AMONG THE OTHER ARMS THAT FIT INTO THE STRATEGY WHILE SOME ANALYSTS WERE SKEPTICAL ABOUT THE EASE OF INTEGRATING THE TWO COMPANIES AND THE PRICE NORTHROP PAID LIOR BREGMAN OF OPPENHEIMER & CO SAID THAT IF YOU'D ASKED ANYBODY IN THE DEFENSE INDUSTRY FIVE YEARS AGO WHAT'S THE MOST NATURAL COMBINATION IN THE INDUSTRY THEY'D HAVE SAID NORTHROP AND GRUMMAN STILL SOME GRUMMAN EMPLOYEES HAD BEEN LOOKING FORWARD TO MARTIN MARIETTA'S PLANS TO TAKE GRUMMAN MORE INTO ELECTRONICS WHILE PARING AWAY AIRCRAFT OPERATIONS SUCH DOUBTERS WILL BE VERY PLEASED WITH THIS RELATIONSHIP MR KRESA SAID HE SAID IT WAS TOO EARLY TO SPECULATE WHAT IF ANY GRUMMAN OPERATIONS MIGHT BE SOLD GREG STEINMETZ CONTRIBUTED TO THIS ARTICLE