BRITISH PUBLISHER PEARSON PLC AGREED TO ACQUIRE SOFTWARE TOOLWORKS INC OF CALIFORNIA FOR 1475 A SHARE OR ABOUT 462 MILLION IN WHAT ANALYSTS VIEWED AS A COSTLY EXPANSION INTO MULTIMEDIA SOFTWARE PEARSON SAID THE PURCHASE WILL PROVIDE IT AN ENTRY INTO THE ENTERTAINMENT AND EDUCATIONAL SOFTWARE MARKET AND ALSO GIVE IT ANOTHER WAY TO DELIVER INFORMATION THAT IT CURRENTLY PROVIDES THROUGH NEWSPAPERS AND BOOKS HOWEVER THE COMPANY'S STOCK FELL SHARPLY CLOSING AT 641 PENCE 951 A SHARE OFF 26 PENCE OR 42 IN TRADING YESTERDAY ON THE LONDON STOCK EXCHANGE ANALYSTS QUESTIONED WHETHER PEARSON IS OVERPAYING FOR A COMPANY THAT HAS HAD UPS AND DOWNS IN A COMPETITIVE MARKET YESTERDAY SOFTWARE TOOLWORKS' STOCK CLOSED AT 14375 UP 4375 OR 44 FROM WEDNESDAY'S CLOSE OF 10 A SHARE IN TRADING ON THE NASDAQ STOCK MARKET VOLUME TOTALED 174 MILLION SHARES BUT THE PURCHASE PRICE IS STILL SHORT OF SOFTWARE TOOLWORKS' HIGH OF 1725 A SHARE LAST YEAR THE COMPANY BASED IN NOVATO CALIF IS A LEADING MAKER OF VIDEO GAMES AND MULTIMEDIA PROGRAMS THAT RUN ON NINTENDO AND SEGA GAME MACHINES AS WELL AS IBMCOMPATIBLE PERSONAL COMPUTERS THE COMPANY ALSO MAKES POPULAR CDROM PROGRAMS IN THE CHILDREN'S AND ADULTS EDUTAINMENT MARKET US ANALYSTS SAID THE SOFTWARE TOOLWORKS DEAL IS FURTHER EVIDENCE THAT SOFTWARE MAKERS ARE FINDING IT INCREASINGLY DIFFICULT TO SURVIVE WITHOUT PARTNERS OR NEW INFUSIONS OF CAPITAL JUST A FEW WEEKS AGO FOR INSTANCE SOFTWARE GIANT ELECTRONIC ARTS INC SAID IT WOULD ACQUIRE BRODERBUND SOFTWARE IN A STOCK SWAP VALUED AT ABOUT 400 MILLION FOR SOFTWARE TOOLWORKS THE COMBINATION WITH PEARSON GIVES IT ACCESS TO BADLY NEEDED CASH AS WELL AS A TREASURE TROVE OF PUBLISHING CONTENT THAT IT CAN TAP INTO FOR GAMES AND PROGRAMS FOR PEARSON THE MOVE CONTINUES A STRATEGIC REFOCUSING ON INFORMATION AND ENTERTAINMENT LAST YEAR PEARSON DISPOSED OF ITS ROYAL DOULTON CHINA UNIT AND ITS US OILSERVICES SUBSIDIARY CAMCO TO CONCENTRATE ON ITS PUBLISHING AND MEDIA INTERESTS WHICH INCLUDE THE FINANCIAL TIMES NEWSPAPER A 50 STAKE IN THE ECONOMIST MAGAZINE AND VARIOUS PUBLISHING AND BROADCAST HOLDINGS STILL SOME FRET ABOUT PEARSON HAVING OVERPAID FOR THE SOFTWARE CONCERN SOFTWARE TOOLWORKS STUMBLED BADLY IN FISCAL 1992 WHEN IT WAS HIT BY A SHAREHOLDER LAWSUIT THAT ENDED UP COSTING IT 157 MILLION OF CASH AND STOCK TO SETTLE ATOP OF THAT SOFTWARE TOOLWORKS'S REVENUE DECLINED PRECIPITOUSLY IN 1991 WHEN IT AND OTHER INDUSTRY GAME MAKERS WERE FORCED TO SWITCH TO 16BIT GAME PLAYERS FROM EIGHTBIT PLAYERS BEING PHASED OUT THE COMPANY FINALLY BROKE BACK INTO THE BLACK IN FISCAL 1993 WITH 35 MILLION IN PROFIT AND ANALYSTS BELIEVE IT WILL MORE THAN DOUBLE THAT IN THE YEAR ENDED YESTERDAY AS REVENUE SOARS ON THE STRENGTH OF NEW PROGRAMS BUT ANALYSTS ADD THAT SOFTWARE TOOLSWORKS HAS A GOOD POSITION IN THE MARKET FOR INTERACTIVE PROGRAMS AND SO A PREMIUM COULD BE JUSTIFIED 9404010078 940401 BUSINESS BRIEF SHAWMUT NATIONAL CORP APPLICATION TO ACQUIRE BANK IS APPROVED BY COMPTROLLER SHAWMUT NATIONAL CORP SAID THE US COMPTROLLER OF THE CURRENCY APPROVED ITS APPLICATION TO ACQUIRE PEOPLES SAVINGS BANK FROM PEOPLES BANCORP OF WORCESTER INC OF WORCESTER MASS FOR 180 MILLION IN STOCK THE TRANSACTION REMAINS SUBJECT TO APPROVAL BY PEOPLES SHAREHOLDERS AND REVIEW BY THE FEDERAL RESERVE BOARD IN NOVEMBER THE FED REJECTED SHAWMUT'S PLAN TO ACQUIRE NEW DARTMOUTH BANK OF MANCHESTER NH CITING CONCERNS ABOUT FAIRLENDING PRACTICES SINCE THEN SHAWMUT BASED IN HARTFORD CONN HAS SETTLED A JUSTICE DEPARTMENT INVESTIGATION AND SUBMITTED DATA TO RESPOND TO CONCERNS EXPRESSED BY THE FED SHAWMUT APPLIED FOR RECONSIDERATION OF THE NEW DARTMOUTH DECISION AND THE FED IS EXPECTED TO ACT BY EARLY MAY IT IS LIKELY THE FED WON'T REVIEW THE COMPTROLLER'S DECISION ON PEOPLES BEFORE THAT TIME 9404010077 940401 INTERNATIONAL CHAOS SNARLS CHINA'S OPENING OF TRADE CENTER BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA CHINA WILL OPEN A NATIONWIDE FOREIGN CURRENCY TRADING CENTER FRIDAY THE LATEST STEP IN ITS CONTINUING CURRENCY REFORM AMID A HAIL OF CONFUSION AND CRITICISM FROM FOREIGN BANKERS THE NEW INTERBANK CURRENCY MARKET BASED IN SHANGHAI THEORETICALLY WILL PROVIDE CHINA WITH THE BANKING HARDWARE TO HANDLE CURRENCY EXCHANGE IN A MANNER THAT EMULATES MORE DEVELOPED ASIAN AND WESTERN COUNTRIES THE SYSTEM GRADUALLY WILL REPLACE THE ARRAY OF 100 SWAP MARKETS AROUND THE COUNTRY WHERE COMPANIES OR THEIR BROKERS MUST SEEK PARTNERS FOR CURRENCY TRADES THE NEW INTERBANK MARKET HOWEVER HAS BEEN PLAGUED BY TECHNICAL DIFFICULTIES UNTRAINED STAFF AN INADEQUATE COMPUTER SYSTEM AND EVEN INSUFFICIENT ELECTRICAL SUPPLY FOREIGN BANKERS SAID THAT ON THE EVE OF THE OFFICIAL OPENING THEY HAD YET TO RECEIVE A FINAL DRAFT OF REGULATIONS GOVERNING THE SYSTEM'S OPERATIONS AMONG THE POINTS OF CONFUSION WHETHER FOREIGN BANKS WILL BE ALLOWED TO BUY AND SELL HARD CURRENCY IN MARKET WHETHER FOREIGN BUSINESSES SEEKING TO EXCHANGE CURRENCY WILL BE LIMITED TO THE OLD SWAP MARKET SYSTEM AND HOW MUCH MEMBER BANKS HAVE TO PAY FOR A SEAT ON THE EXCHANGE AND THE RIGHT TO SETTLE TRANSACTIONS EVEN THE STARTUP TIME IS STILL IN DOUBT DESPITE OFFICIAL ANNOUNCEMENTS THAT THE CENTER WILL OPEN AS SCHEDULED ON FRIDAY BANKERS INDICATED THURSDAY THAT FORMAL TRADING WILL NOT BEGIN UNTIL EARLY NEXT WEEK SINCE THE MARKET OPENED FOR TRIAL OPERATIONS ON MARCH 1 FORMER SWAP MARKETS IN FIVE MAJOR CITIES SHANGHAI BEIJING TIANJIN HANGZHOU AND SHENZHENHAVE BEEN HOOKED UP TO THE CENTRAL BANKCONTROLLED INTERBANK MARKET OTHER CITIES' MARKETS WILL BE ADDED LATER CONFUSION OVER THE SYSTEM RESULTS IN PART FROM LONGDISTANCE MANAGEMENT DESPITE THE GOVERNMENT'S DECISION TO ESTABLISH THE CENTER IN SHANGHAI CONTROL OF VIRTUALLY EVERY ASPECT OF THE EXCHANGE SYSTEM RESTS WITH OFFICIALS IN BEIJING IN THE LONG TERM THE INTERBANK SYSTEM ESTABLISHES A MECHANISM FOR MAKING THE YUAN FULLY AND FREELY CONVERTIBLE BUT FOR NOW BEIJING PLANS TO USE THE COMPUTER LINK TO MONITOR CURRENCY TRANSACTIONS AND REDUCE THE EXPORT OF HARD CURRENCY CHINA PLACES MANY RESTRICTIONS ON CURRENCY TRADING BUT BOTH FOREIGN AND CHINESE BUSINESSES HAVE FOUND THE OLD SWAP MARKET RELATIVELY FLEXIBLE AND EXPECT THE NEW EXCHANGE AFTER AN INITIAL PERIOD TO ENFORCE REGULATIONS MORE STRICTLY AFTER RECENT COMPLAINTS FROM FOREIGN BUSINESSES CONCERNED ABOUT ACCESS TO THE INTERBANK MARKET BEIJING AUTHORITIES DECIDED TO ALLOW FOREIGNERS TO CONTINUE TO USE SWAP MARKETS AT LEAST IN THE IMMEDIATE FUTURE ACCORDING TO A REPORT IN THE CHINA DAILY NEWSPAPER CHINESEOWNED BUSINESS IN CONTRAST WILL BE REQUIRED TO USE THE NEW SYSTEM IMMEDIATELY BUT THE DECISION ONLY ADDED TO THE CONFUSION OF FOREIGN BANKERS SOME OF WHOM REMAIN UNSURE WHETHER THEY WILL BE ABLE TO REPRESENT THEIR CUSTOMERS ON THE NEW EXCHANGE DARRENS WU MANAGER OF THE SHANGHAI BRANCH OF BANK OF EAST ASIA SAYS THAT AS HE UNDERSTANDS THE RULES FOREIGN BUSINESSES CAN CHOOSE TO USE EITHER THE NEW INTERBANK SYSTEM OR THE SWAP MARKETS THE BIGGER CONCERN HE SAID IS THAT FOREIGN BANKS WON'T FOR THE FORESEEABLE FUTURE BE ABLE TO HANDLE MUCH FOREIGN EXCHANGE BUSINESS ON BEHALF OF CHINESE COMPANIES BY FAR THE LARGEST TRADERS THAT'S BECAUSE CHINA DOES NOT ALLOW CHINESE COMPANIES TO KEEP FOREIGNCURRENCY DEPOSITS WITH FOREIGN BANKS 9404010076 940401 TEAMSTERS AND INDUSTRY EXTEND TRUCKING PACT UNTIL APRIL 6 DEADLINE WASHINGTON TRUCKING INDUSTRY AND TEAMSTERS UNION NEGOTIATORS EXTENDED THEIR THREEYEAR NATIONAL FREIGHT CONTRACT SCHEDULED TO EXPIRE TODAY TO 1201 AM EDT ON APRIL 6 THE TEAMSTERS UNION SAID IT WILL GO ON STRIKE IF AN AGREEMENT FOR A NEW CONTRACT ISN'T REACHED BY THE EXTENDED DEADLINE A SPOKESMAN FOR THE TEAMSTERS SAID WE ARE REVIEWING OUR OPTIONS AS TO WHAT KIND OF STRIKE THE NATIONAL FREIGHT CONTRACT INVOLVES 110000 TEAMSTER MEMBERS EMPLOYED BY 23 TRUCK COMPANIES THAT CARRY LESSTHANTRUCKLOAD FREIGHT THE TEAMSTERS AND THE GROUP REPRESENTING TRUCKCOMPANY MANAGEMENT REMAIN DIVIDED OVER PROPOSALS BY THE CARRIERS TO EXPAND THE USE OF PARTTIME WORKERS AND SHIFT MORE LONGHAUL FREIGHT TO RAILROADS TEAMSTERS WANT ENHANCED JOB SECURITY INCLUDING GREATER RESTRICTIONS ON DEVELOPMENT OF NONUNION OPERATIONS AND A LARGER PAY AND BENEFIT PACKAGE THAN MANAGEMENT HAS OFFERED 9404010075 940401 TRAVEL HOTELS CONVERT THE BATHROOM INTO SHOWPLACE BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL WALK INTO YOUR ROOM AT A NEW DELUXE HOTEL AND FEAST YOUR EYES ON ITS FINEST FEATURE NO NOT THE MULTILINGUAL VOICE MAIL OR THE GOLDLEAF TRIM OR THE INROOM FAX MACHINE BEHOLD THE BATHROOM ONCE AN UNLIKELY HOT SPOT FOR DESIGN INNOVATION AND OPULENT AMENITIES THE HOTEL BATHROOM HAS EMERGED AS A PORCELAIN PARADISE AND AN IMPORTANT MARKETING ASSET THERE ARE ONLY TWO GLOBAL DIFFERENCES IN A HOTEL ROOM SPACE AND THE BATHROOM SAYS JANINE SAFER WHITNEY VICE PRESIDENT OF VALERIE WILSON TRAVEL IN NEW YORK WHO BASES HER RECOMMENDATIONS OF HOTELS IN LARGE PART ON THEIR BATHROOMS WHAT'S THE DIFFERENCE BETWEEN THE RITZ IN PARIS AND A YOUTH HOSTEL AT THE YOUTH HOSTEL THE BATHROOM IS DOWN THE HALL TRADITIONALLY EVEN THE BEST HOTELS KEPT BATHROOMS SMALL AND SIMPLE CLEANLINESS AND EFFICIENCY WERE THE GOAL BUT AS HOTEL CAPACITY SOARED IN THE '80S LAVATORIES WERE USED TO GAIN AN AMENITY EDGE PARTICULARLY IN LUXURY LODGINGS OWNERS BUILT 100SQUAREFOOT SHRINES TO THE GODS OF CLEANLINESS WITH DUAL BASINS AND A SEPARATE SHOWER AND TUB THEN STUFFED THE PLACE WITH SHAMPOOS POTIONS AND PERFUMES NOT TO MENTION TELEPHONES AND TELEVISIONS AND TRAVELERS NOTICED THE BATHROOM SAYS SOMETHING ABOUT THE REST OF THE HOTEL SAYS ELIZABETH MACKEY A NEW YORK LITERARY AGENT WHO RECENTLY STAYED AT A BEACH PROPERTY NEAR FORT MYERS FLA SHE GASPED WHEN SHE WALKED INTO THE DRAB CRAMPED BATHROOM IT HAD THE SAME COLOR TILE AS MY PARENT'S BATHROOM AVOCADO SHE SAYS THEY SAW THIS AS SECONDARY AND I RESENTED THAT AT 255 A NIGHT IN THE WORLD'S DELUXE HOTELS THE FRILLS CONSIDERED LAVISH IN BATHROOMS OF THE 1980S TELEPHONES TELEVISIONS AND VAST EXPANSES OF BUFFED ITALIAN MARBLE HAVE BECOME COMMONPLACE HOTEL DESIGNERS ARE NOW SEEKING TO COME UP WITH NEW ATTRACTIONS AT THE TAKESHIBA HOTEL UNDER CONSTRUCTION IN TOKYO FOR EXAMPLE BATHROOM SCALES HAVE BEEN BUILT DIRECTLY INTO THE TILE BALLET BARS USED FOR EXERCISE ARE STANDARD EQUIPMENT AND A SOFT LIGHT WITH DIMMERS HOVERS ABOVE THE TOILET FOR A CONTEMPLATIVE MOOD SAYS HOTEL DESIGNER MICHAEL BEDNER OF HIRSCH/BEDNER ASSOCIATES IN SANTA MONICA CALIF BATHROOMS AT THE BEVERLY HILLS HOTEL NOW UNDER RENOVATION ARE BEING EQUIPPED WITH ANTIFOG MIRRORS HIDDEN HEATED PANELS DO THE TRICK AT THE PAN PACIFIC HOTEL IN VANCOUVER BC BATHROOMS HAVE WINDOWS WITH VIEWS OF VANCOUVER BAY AT SHUTTERS ON THE BEACH IN SANTA MONICA WHICH OPENED LAST YEAR GUESTS CAN SOAK IN A BATHROOM JACUZZI WASH THEIR FACE WITH TERRYCLOTH HAND MITTS THEN WALK INTO A SHOWER EQUIPPED WITH THREE ROTATING HEADS YOU CAN PICK THE RAIN THAT YOU WANT A SPOKESWOMAN SAYS MORE COMMON AMENITIES BEING PUT INTO BATHROOMS OF HIGHPRICED PROPERTIES INCLUDE HEATED TOWEL RACKS DUALLINE TELEPHONES DECORATIVE VANITIES AND REMOTE CONTROLS FOR THE TELEVISION IMPROVEMENTS HAVE ALSO BEEN MADE IN THE BATH'S BASIC DESIGN MORE COUNTER SPACE BETTER LIGHTING BIGGER MIRRORS AND THOSE CHANGES ARE APPEARING IN MAINSTREAM HOTEL CHAINS AS WELL HYATT CORP FOR EXAMPLE IS RELAMPING ITS BATHROOMS WITH IMPROVED FLUORESCENT LIGHTS THAT RENDER COLORS MORE ACCURATELY THEY MAKE THE FACE LOOK BETTER OR WORSE AS THE CASE MAY BE SAYS JOHN NICOLLS THE COMPANY'S SENIOR VICE PRESIDENT OF ARCHITECTURE AND DESIGN BUT THE MARBLE MASTERPIECES HAVE THEIR CRITICS SUCH AS ALEXANDER KIRA AUTHOR OF THE BATHROOM WHO SAYS HOTELS HAVE LET FRILLS OVERWHELM FUNCTION MR KIRA WHO TEACHES ARCHITECTURE AT CORNELL UNIVERSITY RECALLS STAYING AT A PARIS HOTEL IN WHICH WALLTOWALL MARBLE TURNED THE LAVATORY INTO AN ECHO CHAMBER THE FIRST NIGHT WE WOKE UP TO A TREMENDOUS ROARING SOUND HE SAYS SOMEONE ON THE FLOOR ABOVE US WAS TAKING A SHOWER EVEN THE MOST LUXURIOUS LOOS FALL SHORT WHEN OTHER SERVICES ARE LAX BONNIE SETO A FINANCIAL CONSULTANT IN MILL VALLEY CALIF HAD TO BADGER HOUSEKEEPING FOR EXTRA FLOOR MATS AT A 300ANIGHT HOTEL ON THE ISLAND OF LANAI SHE USED BATHROBES INSTEAD MS SETO PREFERS THE WATERFORD HOTEL IN OKLAHOMA CITY OKLA WHERE THE BATHROOMS COME WITH FRESH FRUIT AND PERRIER PLUS PRETHREADED SEWING NEEDLES THOSE ARE THE LITTLE THINGS MS SETO SAYS A BATHROOM IS A PLACE WHERE YOU HAVE TIME FOR YOURSELF A PLACE WHERE YOU CAN GET FIRED UP IN THE MORNING OR CALM DOWN AT NIGHT SOME TRAVELERS AREN'T ENTIRELY PREPARED FOR THE LATEST GENERATION OF PORCELAIN PERKS AT THE FOUR SEASONS HOTEL IN NEW YORK WHICH OPENED LAST YEAR SEVERAL GUESTS HAVE SOAKED THE BATHROOM FLOOR BY OVERFLOWING THE BATHTUB BELLMEN NOW TELL VISITORS ABOUT THE TUB'S SPECIAL WATER PRESSURE THAT FILLS UP THE BATH IN 60 SECONDS AND AT THE HOTEL ARTS IN BARCELONA SPAIN WHICH OPENED LAST YEAR AND IS RUN BY THE RITZCARLTON HOTEL CO A ROSECOLORED MARBLE BENCH IS ATTACHED TO THE INSIDE OF EACH SHOWER STALL AND THREE SHOWER HEADS SIMULTANEOUSLY SPRAY WATER FROM THREE DIFFERENT DIRECTIONS SAYS A HOTEL SPOKESMAN OUR SHOWER IS A MAJOR EXPERIENCE 9404010074 940401 BUSINESS BRIEF ACME STEEL CO CARBON ALLOY STEEL PRICES TO INCREASE STARTING IN JULY ACME STEEL CO FOLLOWING THE LEAD OF SEVERAL OTHER STEELMAKERS SAID IT WILL INCREASE BASE PRICES FOR CARBON AND ALLOY STRIP AND SHEET STEEL BY 10 PER TON BEGINNING JULY 4 ACME STEEL A RIVERDALE ILL SUBSIDIARY OF ACME METALS INC PRODUCES FLATROLLED SHEET AND STRIP PRODUCTS ACME STEEL ALSO SAID IT WILL INCREASE ITS EXTRA FEE FOR SOCALLED PICKLING A CLEANING PROCESS BY 10 PER TON BEGINNING APRIL 4 THE COMPANY CITED INCREASES IN PRICES FOR HYDROCHLORICACID USED IN PICKLING AS WELL AS COSTS ASSOCIATED WITH DISPOSING OF HYDROCHLORIC WASTE ACID IN AN ENVIRONMENTALLY SAFE MANNER HE SAID ACME IS REVIEWING PRODUCTION COSTS RELATED TO SIZE WIDTH AND HEAT TREATMENT AND MAY ANNOUNCE MORE CHANGES TO EXTRAS IN THE FUTURE 9404010073 940401 CREDIT MARKETS MUNIBOND MARKET IS HIT BY WIDESPREAD PRICE DROP BY THOMAS T VOGEL JR AND CANDACE CUMBERBATCH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE LATEST AND PERHAPS THE MOST PAINFUL CASUALTY OF RISING US INTEREST RATES IS THE MUNICIPALBOND MARKET WHICH IS EXPERIENCING ITS WORST SELLOFF IN AT LEAST SEVEN YEARS MUTUALFUND MANAGERS AND OTHER MONEY MANAGERS HAVE BEEN SENDING OUT LONG BID LISTS WHICH ARE REQUESTS FOR BUYERS FOR BONDS THEY ARE TRYING TO UNLOAD AS PRICES PLUNGE THE AMOUNT OF BONDS ON THE BID LISTS HAS EXCEEDED 500 MILLION IN RECENT DAYS MORE THAN 10 TIMES THE NORMAL AMOUNT ACCORDING TO MARKET ANALYSTS MANY MUNI SPECIALISTS HAVE KEPT TABS ON STANDARD & POOR'S BLUE LIST OF CURRENT MUNICIPALBOND OFFERINGS WHICH GIVES AN INDICATION OF DEALER INVENTORIES MUNICIPAL BONDS ON THE LIST REACHED 222 BILLION ON FEB 16 THE HIGHEST LEVEL SINCE APRIL 16 1987 THE LIST HAS DROPPED A BIT SINCE THEN TO 203 BILLION AS OF WEDNESDAY ON WEDNESDAY THE AVERAGE YIELD OF 20 GENERALOBLIGATION MUNICIPAL BONDS MATURING IN 20 YEARS TRACKED BY THE BOND BUYER A TRADE PUBLICATION JUMPED ABOVE 6 FOR THE FIRST TIME IN 14 MONTHS TO 607 UP FROM 520 LAST OCTOBER WHEN INTEREST RATES BOTTOMED IN THE US PRICES OF MANY MUNICIPAL BONDS HAVE DROPPED AS MUCH AS 12 POINTS OR AS MUCH AS 120 FOR A BOND WITH 1000 FACE VALUE SINCE EARLY FEBRUARY WHEN THE FEDERAL RESERVE NUDGED UP SHORTTERM INTEREST RATES YESTERDAY MEANWHILE THE BENCHMARK 30YEAR TREASURY BOND YIELD DROPPED TO 708 FROM 710 ON WEDNESDAY THE NUMBERS ARE SCARY SAYS THOMAS DOE AN ANALYST AT MUNICIPAL MARKET DATA A UNIT OF THOMSON FINANCIAL SERVICES EVERYBODY IS TRYING TO GO THROUGH THE DOOR AT THE SAME TIME THE SHARP PRICE DROPS IN THE TAXEXEMPT MARKET AFFECT INDIVIDUAL INVESTORS MORE THAN ANYONE ELSE DIRECTLY OR INDIRECTLY THROUGH MUTUAL FUNDS MOM AND POP INVESTORS OWNED MORE THAN 76 OF ALL MUNI BONDS OR NEARLY 950 BILLION THROUGH THE THIRD QUARTER OF LAST YEAR ACCORDING TO THE PUBLIC SECURITIES ASSOCIATION AND SINCE THE MUNICIPAL MARKET IS FAR LESS LIQUID THAN THE MARKET FOR TREASURY BONDS OR EVEN CORPORATE BONDS IT IS HIT MUCH HARDER WHEN INVESTORS DECIDE THEY WANT TO CASH OUT AS UNATTRACTIVE AS THE MUNICIPALBOND MARKET IS RIGHT NOW SOME MUNI SPECIALISTS SAY THE PLUNGE IN 1987 WAS PROBABLY WORSE EARLY THAT YEAR THE MARKET WAS ROILED BY RISING INTEREST RATES HUGE SALES BY BOND FUNDS AND FEARS ABOUT CHANGING TAX AND MUNICIPALBOND MARKET REGULATIONS THE REAL CRASH WAS IN APRIL OF 1987 PARTICULARLY FOR BOND FUNDS SAYS ZANE MANN PUBLISHER OF THE CALIFORNIA MUNICIPAL BOND ADVISOR NEWSLETTER MR MANN WHO IS 70 YEARS OLD HAS BEEN INVOLVED WITH THE MUNI MARKET FOR 35 YEARS WE HAD A SOCALLED DEATH SPIRAL IN 1987 BECAUSE REDEMPTIONS CAUSED FUND MANAGERS TO UNLOAD MUNIS INTO A DECLINING MARKET HE RECALLS WHILE THE RECENT OUTFLOWS FROM MUNI FUNDS ARE A CONCERN THEY DON'T SEEM TO HAVE REACHED ANY SORT OF A DEATHSPIRAL LEVEL YET MR MANN ADDS IN THE MONTH THROUGH MARCH 23 MORE THAN 250 MILLION WAS BEEN FLOWING OUT OF MUNICIPALBOND FUNDS EACH WEEK ACCORDING TO AMG DATA SERVICES INC ARCATA CALIF OFFICIALS AT SEVERAL BIG MUNICIPALBOND FUND MANAGERS INCLUDING FRANKLIN RESOURCES INC VANGUARD GROUP AND T ROWE PRICE ASSOCIATES INC ACKNOWLEDGED THAT THEY HAVE EXPERIENCED OUTFLOWS IN THE PAST TWO MONTHS BOTH VANGUARD AND T ROWE PRICE SAID THE OUTFLOWS PICKED UP IN MARCH FROM FEBRUARY THE SHARP DROP IN PRICES HAS MADE LIFE HECTIC FOR THE FUND MANAGERS WHO ARE SCRAMBLING TO GET QUOTES ON THE VALUE OF THEIR BONDS BUT ARE HAVING PROBLEMS FINDING THEM A SPOKESMAN FOR VANGUARD SAID PRICES ARE SO TOUGH TO FIND THAT IT MUST ESTIMATE THEM IN ORDER TO DETERMINE A FUND'S NET ASSET VALUE PER SHARE IT'S THE BEST WE CAN DO WHEN WE CAN'T GET PRICES FROM PRICING SERVICES HE SAID HOWEVER T ROWE PRICE SAID IT WASN'T HAVING ANY TROUBLE GETTING MUNIBOND PRICE QUOTES YESTERDAY IT WAS POSSIBLE TO GET PRICE QUOTES FOR CERTAIN LARGE AND FREQUENT BOND ISSUERS SUCH AS THE NEW YORK LOCAL GOVERNMENT ASSISTANCE CORP THE AGENCY'S 550 COUPON BONDS MATURING IN 2018 HAVE DROPPED 12 POINTS TO 88 SINCE EARLY FEBRUARY FOR A YIELD OF 650 UP FROM 550 FOR BONDS FROM SMALLER AND LESS FREQUENT ISSUERS THE PRICE DROPS WERE MUCH MORE SEVERE MARKET ANALYSTS SAID THE SELLING BY MUTUAL FUNDS CAN HAVE AN OUTSIZED EFFECT ON THE MUNICIPALBOND MARKET SAID JAMES J COONER SENIOR VICE PRESIDENT OF BOND MANAGEMENT AT BANK OF NEW YORK THE FLOW OF MONEY FROM MUTUAL FUNDS HAS SUPPORTED ALL THESE MARKETS AND HAS BEEN A KEY FACTOR IN BOOSTING PRICES HE SAID ALL OF A SUDDEN THAT FLOW DIMINISHES OR STOPS AND A VERY IMPORTANT PLAYER IS NO LONGER AVAILABLE TO PLAY MR DOE OF MUNICIPAL MARKET DATA WORRIES THAT THINGS COULD GET WORSE YOU HAVE ALL THESE ASSETS UNDER MANAGEMENT OF THE MUTUAL FUNDS AND LESS ABILITY OF WALL STREET TO ABSORB THE SUPPLY HE SAID LAST YEAR THERE WAS PLENTY OF INTEREST FROM INSURANCE COMPANIES AND HEDGE FUNDS IN THE MUNI MARKET HE SAYS BUT NOT NOW THE RESULT IS A HUGE SURPLUS OF SELLERS AND FEW BUYERS SUCH AN IMBALANCE IS PARTICULARLY DAMAGING TO THE MUNICIPALBOND MARKET SAID MR DOE THE OTHER MARKETS HAVE A GREATER ABILITY TO HANDLE RISK AND UNDERSTAND IT THE MUNICIPAL MARKET IS NOT AS LIQUID YOU CAN GO OUT AND BUY 10 SHARES OF AT&T FOR 5000 SAID MR COONER OF BANK OF NEW YORK BUT BUYING 5000 OF MUNICIPAL BONDS CAN BE AN EXPENSIVE PROPOSITION AND A LOT OF DEALERS DON'T WANT TO HANDLE SUCH A SMALL TRANSACTION HE SAID ANOTHER FACTOR CONTRIBUTING TO THE SHARP DOWNTURN IN THE MUNICIPAL MARKET IS THE COMPLACENCY OF MANY INDIVIDUAL INVESTORS AS THEY POURED MONEY INTO THE BOND MARKETS WITHOUT FULLY CONSIDERING THE RISKS A LOT OF PEOPLE WHO GOT COMFORTABLE WITH THE FACT THAT WE HAD A FAIRLY LONG BULL MARKET IN BONDS HAD FORGOTTEN THAT MARKETS GO IN BOTH DIRECTIONS SAID JOSEPH DEANE MANAGING DIRECTOR OF TAXEXEMPT FIXED INCOME AT GREENWICH STREET ADVISORS A SUBSIDIARY OF SMITH BARNEY SHEARSON INC THE PAST TWO MONTHS HAVE BEEN A GOOD LESSON HE ADDED SOME IN THE MARKETS THEORIZED THAT LARGE HOLDINGS OF MUNICIPALDERIVATIVE SECURITIES WHOSE PRICES OFTEN RISE OR FALL FASTER THAN PLAINVANILLA BONDS MAY BE ACCELERATING THE MARKET PLUNGE ACCORDING TO PARRY YOUNG DIRECTOR OF THE MUNICIPALFINANCE DEPARTMENT AT STANDARD & POOR'S CORP S&P RATED MORE THAN 4 BILLION IN MUNICIPAL DERIVATIVES LAST YEAR DOUBLE THE AMOUNT THE YEAR BEFORE OF THAT AMOUNT MR YOUNG ESTIMATED THAT AS MUCH AS 2 BILLION WERE INVERSE FLOATERS RISKY BONDS WHOSE VALUE FALLS MORE QUICKLY THAN REGULAR BONDS WHEN SHORTTERM INTEREST RATES RISE THE FEDERAL RESERVE'S MOVE TO BOOST THE FEDERALFUNDS RATE THE INTEREST RATE AT WHICH BANKS MAKE OVERNIGHT LOANS TO EACH OTHER FROM 3 TO 35 IN TWO SEPARATE STEPS SINCE EARLY FEBRUARY WAS VERY BAD NEWS FOR HOLDERS OF INVERSE FLOATERS DENIS GALLE A MANAGING DIRECTOR AT LEBENTHAL & CO WHO HAS BEEN IN THE MARKET FOR 22 YEARS SAID THE CURRENT DROP SEEMS MOST SIMILAR TO THE ONES THAT OCCURRED IN 1986 1979 AND 1980 IN 1986 THE MUNI MARKET WAS JOLTED BY THE IMPACT OF THE TAX REFORM ACT ROCKETING US INTEREST RATES BECAME A BIG PROBLEM IN 1979 AND 1980 DUE TO THE FEDERAL RESERVE'S INFLATIONKILLING MONETARY POLICY UNDER ITS FORMER CHAIRMAN PAUL VOLCKER AS FOR THE MARKET'S CURRENT STATE MR GALLE SAID SHAMBLES IS THE ONLY WAY YOU CAN DESCRIBE IT THERE'S BEEN ONE PROLONGED MOVE DOWN IT DOESN'T STOP SAID GREGORY GIZZI HEAD MUNI TRADER AT DILLON READ & CO IN SOME WAYS THE CURRENT DECLINE IS WORSE THAN THE 1987 MUNI PLUMMET IN THE MONTHS BEFORE THE BLACK MONDAY STOCKMARKET CRASH OBSERVED MR GIZZI WHO HAS BEEN IN THE MARKET FOR 10 YEARS WHILE PRICES DROPPED IN A STAIRCASE PATTERN IN 1987 IT HAS ESSENTIALLY BEEN ONE STRAIGHT LINE DOWN THIS TIME AROUND HE SAID BUT NOT EVERYONE IS TALKING GLOOM AND DOOM IN THE MUNI MARKET MR DEANE OF GREENWICH STREET ADVISORS SAID HE SPENT MORE THAN 1 BILLION ON TUESDAY AND WEDNESDAY BUYING MUNICIPAL BONDS AND COVERING SHORT POSITIONS HE TOOK IN ADVANCE OF THE RECENT DECLINES A SHORT POSITION IS COVERED WHEN AN INVESTOR BUYS BACK BORROWED SECURITIES HE SOLD IN ANTICIPATION OF A PRICE DROP IF PRICES DO DROP THE INVESTOR POCKETS THE DIFFERENCE MR DEANE SAID HE WAS SHORTING TREASURY BONDS AND CERTAIN MUNICIPAL BONDS BUT BEGINNING LATE TUESDAY HE BEGAN TO COVER THOSE POSITIONS AND BUY MUNICIPAL BONDS VERY AGGRESSIVELY THE MUNICIPAL MARKET COULD GO DOWN SOME MORE HE SAID BUT 95 OF THE CORRECTION IS BEHIND US HE CALLED YESTERDAY ONE OF THE GREATEST DAYS OF HIS LIFE IN THE MUNICIPALBOND MARKET THE RECENT SELLOFF HAS BEEN PURE PSYCHOLOGY SAID MR DEANE THIS IS A REAL TRUE BUYING OPPORTUNITY FOR MUNICIPAL BONDS TREASURY MARKET INVESTORS SUFFERED ANOTHER WILD RIDE BUT THIS TIME PRICES OF MOST US TREASURY SECURITIES FINISHED IN THE PLUS COLUMN AT MIDMORNING BOND PRICES WERE SENT INTO A TAILSPIN BY A REPORT SHOWING FASTER MANUFACTURING GROWTH AND HINTS OF RISING INFLATIONARY PRESSURES BUT BY MIDAFTERNOON THE MARKET HAD REGAINED ITS FOOTING AND ERASED MOST OF WHAT HAD BEEN SIZABLE LOSSES BOND INVESTORS FEAR RISING INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 1/4 POINT OR NEARLY 250 FOR A BOND WITH 1000 FACE VALUE TO 89 20/32 THE 10YEAR NOTE ROSE 1/4 POINT TO 93 25/32 TO YIELD 673 UP FROM 677 ON WEDNESDAY THE SELLOFF WAS SPARKED BY THE CHICAGO PURCHASING MANAGEMENT ASSOCIATION'S INDEX OF AREA BUSINESS ACTIVITY TRADERS SAID THE ASSOCIATION REPORTED THAT ITS OVERALL INDEX CLIMBED TO A SEASONALLY ADJUSTED 665 IN MARCH FROM 603 THE PREVIOUS MONTH A READING ABOVE 50 REFLECTS AN EXPANDING LOCAL MANUFACTURING SECTOR THE CHICAGO INDEX IS OFTEN VIEWED AS A PRECURSOR OF THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT INDEX THE NAPM INDEX IS TO BE RELEASED MONDAY ESPECIALLY UNNERVING TO BOND TRADERS WAS AN INCREASE IN THE PRICESPAID COMPONENT OF THE REPORT WHICH ROSE TO 588 IN THE MONTH FROM 567 IN FEBRUARY IN ADDITION THE REPORT'S LOCAL EMPLOYMENT INDEX REACHED 60 IN MARCH FROM 52 THIS IS A MARKET WITH A DISTINCT INTOLERANCE FOR ANYTHING THAT EVEN REMOTELY SMACKS OF ECONOMIC STRENGTH SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS THE RESPONSE TO THE DATA WAS SUDDEN WITH THE YIELD ON THE LONG BOND RISING FROM 712 TO 719 IN ABOUT HALF AN HOUR AT THE SAME TIME THE TREASURY MARKET CONTINUED TO SUFFER THE SELLING OF OTHER FIXEDINCOME PRODUCTS MUCH OF WHICH TRADERS BLAMED ON QUARTEREND POSITION ADJUSTMENTS BY PORTFOLIO MANAGERS AND AS INVESTORS UNLOADED MORTGAGEBACKED AND MUNICIPAL SECURITIES INTO DEALERS' HANDS WALL STREET FIRMS WERE FORCED TO SELL TREASURYS IN ORDER TO HEDGE AGAINST THEIR EXPOSURES TO THOSE OTHER SECURITIES BUT SOME INVESTORS FOUND THE HIGHER YIELDS IRRESISTIBLE AND BEGAN BUYING IN ADDITION TRADERS REPORTED BUYING OF TREASURY ISSUES BY INVESTORS WHO WERE PULLING MONEY OUT OF THE BATTERED US EQUITIES MARKETS THE NEXT BIG HURDLE FOR THE BOND MARKET WILL BE THE MARCH EMPLOYMENT REPORT WHICH IS SCHEDULED TO BE RELEASED TODAY ANALYSTS ARE CALLING FOR A RISE IN NONFARM PAYROLL EMPLOYMENT OF AT LEAST 250000 FOR THE MONTH IN FEBRUARY PAYROLL EMPLOYMENT ROSE 217000 THE PUBLIC SECURITIES ASSOCIATION HAS RECOMMENDED THE BOND MARKET BE CLOSED IN OBSERVANCE OF GOOD FRIDAY BUT BECAUSE OF THE IMPORTANCE OF THE PAYROLL DATA MANY DEALERS WILL HAVE LIMITED STAFFS IN PLACE TO RESPOND TO THE REPORT TRADING IS EXPECTED TO END BY MIDDAY HERE ARE RESULTS OF YESTERDAY'S TREASURY 52WEEK BILL AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED APRIL 7 AND MATURE APRIL 6 1995 THE CORPORATE BOND MARKET WAS EXTREMELY QUIET AS JUST UNDER 500 MILLION OF DEBT WAS SOLD THE SOLE INVESTMENTGRADE CORPORATE ISSUE CAME FROM FIRST NATIONAL BANK OF BOSTON WHICH SOLD 100 MILLION OF FLOATINGRATE DEBT EMPRESS RIVER CASINO FINANCE CORP AND MILES HOMES SERVICE INC BOTH SOLD JUNK BONDS TRADING IN THE INVESTMENTGRADE MARKET WAS EXTREMELY LIGHT WITH SPREADS VIRTUALLY UNCHANGED MCDONNELL DOUGLAS CORP'S BONDS ROSE AFTER MOODY'S INVESTORS SERVICE INC UPGRADED THE AEROSPACE FIRM'S DEBT TO BAA3 FROM BA2 THE DEBT OF ITS FINANCE SUBSIDIARY MCDONNELL DOUGLAS FINANCE CORP ALSO WAS UPGRADED TO BAA3 FROM BA1 MCDONNELL DOUGLAS'S 9 1/4 NOTES MATURING IN 2002 TRADED UP 5/8 POINT OR 625 FOR A BOND WITH A 1000 FACE VALUE TO 1085 THE YIELD DROPPED TO 78 FROM 79 MORTGAGE SECURITIES WEREN'T ABLE TO DUPLICATE THE MILD LATE GAINS IN GOVERNMENT BONDS AND ENDED SLIGHTLY LOWER AMONG 75 MORTGAGE SECURITIES DUE IN APRIL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SLIPPED 3/32 TO 98 9/32 FEDERAL HOME LOAN MORTGAGE CORP GOLDS FELL 3/32 TO 98 28/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION LOST 3/32 TO 98 22/32 ROBERT MCGOUGH CONTRIBUTED TO THIS ARTICLE FALLING PRICES ARE TAKING THEIR TOLL ON MUNICIPALBOND FUNDS WHILE YIELDS ARE UP SHARE PRICES ARE DOWN AS THESE EXAMPLES FROM VANGUARD GROUP SHOW 9404010072 940401 WHAT JOURNAL SAID ABOUT CATTLE FUTURES DURING 197879 RALLY BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL ADVISERS TO HILLARY RODHAM CLINTON SAY SHE BASED HER HIGHLY SUCCESSFUL 197879 COMMODITIES TRADING IN PART ON INFORMATION IN THE WALL STREET JOURNAL SO WHAT EXACTLY WAS THE JOURNAL SAYING ITS LIMITED COVERAGE OF CATTLE FUTURES SHOWED TRADING WAS PARTICULARLY VOLATILE AT THE TIME EVENTS CAN'T BE CLOSELY COORDINATED WITH MRS CLINTON'S TRADES BECAUSE THE WHITE HOUSE DIDN'T RELEASE DETAILS OF THEM BUT HERE ARE SOME SAMPLES OF WHAT THE JOURNAL WAS REPORTING IN 197879 AS IT TRIED TO EXPLAIN WHY PRICES HAD GONE UP OR DOWN ON THE PREVIOUS TRADING DAY SEPT 1 1978 A FRONTPAGE ARTICLE EXPLAINED HOW BROKERS WERE ENJOYING A BULL MARKET IN COMMODITY TRADING BECAUSE NEW SPECULATORS CONCERNED ABOUT INFLATION AND THE OIL CRISIS VIEWED COMMODITIES AS A HEDGE AGAINST THE DECLINE OF THE DOLLAR OCT 6 1978 IF YOU TALK WITH ANY BROKER IN EUROPE THERE HAS BEEN A TREMENDOUS UPSURGE IN INTEREST IN US COMMODITIES MARKETS SAID A COMMODITIES EXPERT QUOTED IN A STORY OUT OF LONDON OCT 11 1978 SUDDEN HEAVY SPECULATIVE SELLING PUSHED CATTLEFUTURES PRICES SHARPLY LOWER IN LATE TRADING SAID A STORY ON THE DAY REFCO INC RECORDED MRS CLINTON'S INITIAL INVESTMENT THE DROP WAS ATTRIBUTED TO AN UNEXPECTEDLY LARGE NUMBER OF CATTLE BEING DELIVERED AGAINST EXPIRING OCTOBER FUTURES CONTRACTS OCT 20 1978 A GOVERNMENT REPORT SHOWED 16 MORE CATTLE BEING FATTENED IN FEEDLOTS ON OCT 1 1978 THAN A YEAR EARLIER CATTLE FUTURES TUMBLED OCT 26 1978 PRESIDENT CARTER PROPOSED VOLUNTARY WAGEANDPRICE STANDARDS AND OTHER REMEDIES FOR INFLATION THE DAY SAW A WAVE OF FUTURES BUYING NOV 1 1978 AS THE DOLLAR AND STOCKS PLUNGED INVESTORS TOOK REFUGE IN COMMODITIES WHERE PRICES WERE SETTING HIGHS IN RECORD TRADING CATTLE FUTURES ROSE NOV 2 1978 COMMODITY PRICES FELL ACROSS THE BOARD IN REACTION TO A RISE IN THE DISCOUNT RATE TO 95 NOV 24 1978 MEAT FUTURES ROSE STRONGLY IN HEAVY TRADING AMID SPECULATION THAT REDMEAT PRICES WOULD RISE AFTER THANKSGIVING POULTRY BUYING ENDED DEC 1 1978 SPECULATION THAT PRESIDENT CARTER MIGHT INCREASE ALLOWABLE US MEAT IMPORTS HURT MEAT FUTURES DEC 8 1978 CATTLE FUTURES RALLIED SHARPLY AS TRADERS FEARED THAT WINTER STORMS MIGHT SLOW DELIVERIES JAN 4 1979 PRICES OF MOST CATTLE FUTURES ROSE TO LIFEOFCONTRACT HIGHS BEEF PRICES WERE EXPECTED TO KEEP RISING BECAUSE OF TIGHT SUPPLIES IN THE MIDWEST WHERE BAD WEATHER HURT TRANSPORTATION JAN 9 1979 A REPORT SAID A RECORD 585 MILLION CONTRACTS CHANGED HANDS ON US COMMODITYFUTURES EXCHANGES IN 1978 UP 36 FROM 1977 FEB 1 1979 CATTLE FUTURES HIT LIFETIME HIGHS AGAIN FUELED BY A REPORT THAT CATTLE NUMBERS HAD SHRUNK 5 IN 1978 FEB 12 1979 BAD WEATHER IN THE MIDWEST AND PLAINS KEPT CATTLE AND HOGS FROM GAINING WEIGHT CRIMPING PRODUCTION AND BOOSTING PRICES MARCH 2 1979 CATTLE PRICES HIT NEW HIGHS PULLING HOG AND CHICKEN PRICES UP WITH THEM MARCH 14 1979 FARMERS PUT 14 FEWER CATTLE IN FEEDLOTS IN FEBRUARY THAN IN THE YEAREARLIER MONTH THE AGRICULTURE DEPARTMENT REPORTED IT FORESAW BEEF SUPPLIES GETTING TIGHTER LATER IN THE YEAR CATTLE FUTURES ROSE MARCH 27 1979 CATTLE FUTURES FELL SHARPLY ON TALK THAT SOME PROMINENT TRADERS WERE SELLING APRIL 10 1979 CATTLE FUTURES HIT NEW HIGHS AS WHOLESALE BEEF PRICES ROSE BUT THE STEADY CLIMB OF FUTURES TRADING VOLUME DECLINED IN MARCH 1979 FOR THE FIRST TIME SINCE 1975 APRIL 19 1979 CONTINUING TIGHT CATTLE SUPPLIES HELPED PUSH UP CASH PRICES FOR CATTLE BUT CATTLE FUTURES TUMBLED BECAUSE TRADERS WANTED TO GET OUT OF THE MARKET IN ADVANCE OF AN AGRICULTURE DEPARTMENT REPORT APRIL 25 1979 CATTLE FUTURES SLUMPED ON NEWS OF LOWER WHOLESALE BEEF PRICES AND AN IOWA CONGRESSMAN'S CALL FOR BETTER REGULATION OF CATTLEFUTURES TRADING MAY 30 1979 CATTLE FUTURES DECLINED AS SUPERMARKETS REDUCED DEMAND FOR BEEF AFTER MEMORIAL DAY WEEKEND JUNE 1 1979 SUPERMARKETS STARTED BUYING BEEF AGAIN CATTLE FUTURES ROSE JULY 17 1979 COMMODITY TRADERS SAW A CARTER SPEECH CALLING FOR QUOTAS ON OIL IMPORTS AND DEVELOPMENT OF SYNTHETIC FUELS AS INFLATIONARY COMMODITIES ROSE JULY 18 1979 ABUNDANT SUPPLIES AND SLACK DEMAND SENT LIVESTOCK PRICES DOWN JULY 23 1979 FOR BEEF PRICES THE REST OF 1979 LOOKS TO BE ALL DOWNHILL A BEARISH ARTICLE IN THE JOURNAL SAID IT CITED A REPORT THAT RETAIL BEEF PRICES HAD PEAKED IN MIDMAY AT 244 A POUND AND DROPPED TO 231 FOR THE WEEK ENDED JUNE 30 MRS CLINTON EXITED THE FUTURES MARKET AT ABOUT THIS TIME THE WHITE HOUSE HAS SAID JULY 27 1979 CATTLEFUTURES PRICES PLUNGED BECAUSE OF A WEAK WHOLESALE MARKET IN OCTOBER 1979 THE BULL MARKET IN CATTLE FUTURES ENDED 9404010071 940401 TECHNOLOGY & SCIENCE IN THE LAB TEXACO'S HOSPITAL' DIAGNOSES OIL WELLS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON IN DIRE NEED OF A SPECIALIZED CATSCAN DIAGNOSIS A PATIENT WAS AIRLIFTED 7600 MILES FROM HIGH ABOVE THE ARCTIC CIRCLE IN RUSSIA TO A STERILE FACILITY ON THE SOUTHWEST SIDE OF THIS CITY THE PATIENT IS ELDERLY SOME 375 MILLION YEARS OLD GIVE OR TAKE THE PATIENT IS ALSO A ROCK LIMESTONE TO BE SPECIFIC A SAMPLE PULLED FROM AN OIL WELL DRILLED BY TEXACO INC IN THE REMOTE ROUGH TIMAN PECHORA REGION OF RUSSIA WE'RE THE MEDICAL SECTION HERE SAYS GREGORY PEPIN A TALL BALDING DOCTOR OF NUCLEAR PHYSICS IN TEXACO'S HOUSTON RESEARCH LABORATORY CALLED THE EXPLORATION AND PRODUCTION TECHNOLOGY DEPARTMENT WITH A CYLINDRICAL HOSPITAL CAT SCAN MODIFIED TO HOLD FOURINCHDIAMETER ROCKS RATHER THAN BODIES DR PEPIN IS FINISHING A YEAR'S WORTH OF WORK TAKING 6000 IMAGES OF 1000 FEET OF CORE SAMPLES PULLED UP FROM BENEATH THE RUSSIAN TUNDRA ONLY THE CREAM OF THE TEXACO SAMPLE CROP GETS THE SPECIALIZED COMPUTERIZED AXIAL TOMOGRAPHY OR CATSCAN TREATMENT THAT TEXACO HAS BEEN REFINING FOR SEVERAL YEARS THE RESULTS OF DR PEPIN'S TESTS WHICH COMPUTER ENGINEERS IN THE LAB TRANSLATE INTO COLORED THREEDIMENSIONAL VIEWS OF THE INTERIOR WILL HELP DETERMINE WHETHER THE COMPANY PROCEEDS WITH A MULTIBILLIONDOLLAR RUSSIAN OIL FIELD DEVELOPMENT YOU CAN FIND A HELL OF A LOT OF OIL IN THE LABORATORY SAYS ALFRED DECRANE TEXACO'S CHIEF EXECUTIVE OFFICER AS MUCH AS WITH THE DRILL BIT CAT SCANS ALLOW PHYSICIANS TO LOOK AT BONES TO FIND SMALLSCALE VARIATIONS IN THEIR DENSITY IN SEARCHING FOR SKELETAL PROBLEMS THE SKELETAL STRUCTURE IN THE OIL INDUSTRY IS THE ROCK ITSELF AND THE VARIATION IS THE POROSITY AND THE TYPE OF ROCK DR PEPIN SAYS IF TEXACO IS LUCKY THE TINY HOLES AND CRACKS IN THESE ROCKS ARE FILLED WITH OIL AND THESE CORE SAMPLES HELP GEOSCIENTISTS DETERMINE HOW MUCH OIL THERE IS AND AT WHAT DEPTH EQUALLY IMPORTANT IS FIGURING OUT HOW MUCH OF THE OIL WILL FLOW OUT OF THE PORES AND THROUGH CRACKS ONCE A WELL IS DRILLED THE CAT SCAN IS JUST ONE PIECE OF TEXACO'S RESEARCH LAB DOWN THE HALL BEHIND A LOCKED DOOR BARRING ENTRY OF PEOPLE WITH PACEMAKERS AND A WARNING THAT MAGNETIC CREDIT CARD STRIPS WILL BE ERASED IS AN MRI MACHINE OR NUCLEAR MAGNETIC RESONANCE IMAGER TEXACO SCIENTISTS ARE TESTING THE MRI BASICALLY A SUPERMAGNET FROM THE MEDICAL INDUSTRY AS ANOTHER EXPLORATORY TOOL FOR LOOKING AT THE LIQUIDS INSIDE ROCKS TEXACO AND THE REST OF THE OIL INDUSTRY HAVE BEEN CUTTING STAFF AND SPENDING IN RECENT YEARS INCLUDING RESEARCH ODDLY ENOUGH WITH OIL PRICES AT FIVEYEAR LOWS THE COMPANY VIEWS APPLIED RESEARCH AS EVEN MORE IMPORTANT BECAUSE IT CAN REDUCE THE HUGE EXPENSE OF WILDCATTERS DRILLING DRY HOLES IN THE FIELD WITH LAB ASSISTANCE DRILLERS CAN ALSO BETTER PINPOINT WHERE TO PLANT A WELL AND HOW TO DEVELOP A FIELD TO GET THE MOST OIL LAST MONTH MR DECRANE TEXACO'S CHIEF EXECUTIVE HEADED TO SAUDI ARABIA ARMED WITH COMPUTER PROJECTIONS COMPLETED IN THE LAB THAT SHOW SEVERAL PLANS TO BOOST OIL OUTPUT IN A PERSIAN GULF TERRITORY CALLED THE NEUTRAL ZONE THAT IS SHARED BY SAUDI ARABIA AND KUWAIT TEXACO OPERATES THE FIELD ON BEHALF OF THE SAUDIS MOST OF THE WELLS WERE DESTROYED BY IRAQ DURING THE 1991 PERSIAN GULF WAR BUT TEXACO SCIENTISTS LIKE MICHAEL SIBLEY SAW THE DEVASTATION AS A CHANCE TO REBUILD THE FIELDS SOME OF WHICH EMPLOYED 40YEAROLD TECHNOLOGY BY DRILLING NEW WELLS IN DIFFERENT PLACES WITH THE POSSIBILITY OF NEARLY DOUBLING PRODUCTION IT'S BECAUSE OF COMPUTER TECHNOLOGY MR SIBLEY SAYS ADDING THAT DECADES OF WELL DATA WERE FED INTO COMPUTERS TO FIND BETTER WAYS TO PRODUCE THE FIELD'S OIL WE COULD NEVER HAVE DONE ANY OF THIS 10 YEARS AGO OR EVEN JUST THREE YEARS AGO HE SAYS STILL TEXACO'S LAB HAS SHRUNK SHARPLY TO ABOUT 500 STAFFERS CURRENTLY FROM 650 IN 1990 AND MORE THAN 1300 IN THE FLUSH DAYS OF 1984 ITS BUDGET THIS YEAR OF 70 MILLION TO 80 MILLION IS WELL BELOW THE 115 MILLION SPENT FOUR YEARS AGO HALF THE MONEY GOES TO PROJECTS UNDER WAY IN THE FIELD AND THE REST TO WORK THAT WILL TAKE TWO OR MORE YEARS TO COMPLETE SOME PROJECTS HAVE BEEN RUNNING FOR 15 YEARS AND COULD TAKE ANOTHER 10 BEFORE BECOMING COMMERCIAL SAYS RONALD ROBINSON GENERAL MANAGER TEXACO BOUGHT ITS CAT SCAN SECONDHAND IN AUGUST 1988 FOR 250000 FULLY INSTALLED TODAY A USED CAT SCAN WOULD RUN ABOUT 80 INSTALLED DR PEPIN FIGURES THERE'S AN INDUSTRY OF USED CATSCAN SALESMEN THAT ARE JUST LIKE USED CAR SALESMEN EXCEPT THEY DON'T WEAR PATENT LEATHER SHOES HE SAYS IN ADDITION TO GREATER PRECISION GEOSCIENTISTS LIKE CAT SCANS BECAUSE THEY DON'T DESTROY THE SAMPLES WHICH IN THE CASE OF THE ONES FROM RUSSIA'S TIMAN PECHORA COST MORE THAN 5 MILLION TO OBTAIN GEOLOGICALLY TIMAN PECHORA IS ENORMOUSLY COMPLEX FILLED WITH HOLES GEOLOGISTS CALL VUGS THAT MAY CONTAIN OIL AND FRACTURES OR CRACKS THAT NEED TO BE INTERCONNECTED WITH THE VUGS SO THE OIL CAN FLOW THROUGH THEM AND INTO A WELL BEFORE BEING DRAWN UP TO THE SURFACE IT'S IMPORTANT TO HAVE A FEEL FOR HOW THE VUGS AND FRACTURES ARE CONNECTED DR PEPIN SAYS POINTING TO A PIECE OF GRAY LIMESTONE HE NOTES SEVERAL THREEINCH FISSURES BUT SAYS THE ROCK IS USELESS BECAUSE THE CAT SCAN SHOWS THE CRACKS AREN'T CONNECTED SO THE OIL WON'T GO ANYWHERE PICKING UP A GRAY HALFFOOTLONG CYLINDER OF ROCK STORED IN BRINE TO KEEP IT MOIST HE SAYS IT'S FILLED WITH OILRICH HOLES HE ADDS THIS IS VERY VUGGY AND THAT'S GOOD 9404010070 940401 PROPOSED LORENZO AIRLINE SHUNS SECOND DOT ROUND NEW YORK ATX INC THE WOULDBE AIRLINE WHOSE BIGGEST STOCKHOLDER IS FORMER AIRLINE CHAIRMAN FRANK LORENZO SAID TRANPORTATION SECRETARY FEDERICO PENA IMPROPERLY INTERFERED IN A DEPARTMENT FITNESS HEARING LAST YEAR FOR THAT AND OTHER REASONS THE AIRLINE SAID IT REJECTED THE TRANSPORTATION DEPARTMENT'S OFFER FOR A SECOND SET OF FITNESS HEARINGS MR LORENZO HAS SAID IF THE TRANSPORTATION DEPARTMENT UPHOLDS AN EARLIER ADMINISTRATIVE LAW JUDGE'S RECOMMENDATION AGAINST ATX HE WOULD CHALLENGE THE DECISION IN COURT THE DEPARTMENT MADE THE SECOND HEARING OFFER THIS WEEK IN RESPONSE TO ATX CHARGES THAT A MEMBER OF THE DOT'S PUBLIC COUNSEL OFFICE HAS A BROTHER WHO IS A MEMBER OF THE AIR LINE PILOTS ASSOCIATION A UNION GROUP OPPOSED TO ATX THE DEPARTMENT SAID THAT TO GET THE SECOND HEARING ATX MUST WAIVE THE APRIL 5 DEADLINE FOR DOT TO RULE ON ATX'S APPLICATION AN ADMINISTRATIVE LAW JUDGE HAD RECOMMENDED AGAINST ATX'S FITNESS AND THE DEPARTMENT IS LIKELY TO UPHOLD HIS RULING NEXT WEEK 9404010069 940401 WHO'S NEWS AMERICAN INTERNATIONAL GROUP INC AMERICAN INTERNATIONAL GROUP INC NEW YORK THOMAS R SAVAGE 44 YEARS OLD WAS NAMED PRESIDENT AT THE AIG FINANCIAL PRODUCTS CORP UNIT OF THIS INSURANCE CONCERN MR SAVAGE SUCCEEDS PETROS SABATACAKIS WHO HELD THAT POSITION ON AN INTERIM BASIS AND CONTINUES AT THE PARENT COMPANY AS SENIOR VICE PRESIDENT FINANCIAL SERVICES 9404010068 940401 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ANNTAYLOR STORES INC AN OFFERING OF FIVE MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 750000 SHARES VIA MERRILL LYNCH & CO MORGAN STANLEY & CO ROBERTSON STEPHENS & CO AND WILLIAM BLAIR & CO BDM INTERNATIONAL INC AN INITIAL OFFERING OF 23 MILLION COMMON SHARES AT AN EXPECTED 13 TO 15 A SHARE WITH AN OVERALLOTMENT OPTION FOR 345000 ADDITIONAL SHARES VIA GOLDMAN SACHS & CO AND LEHMAN BROTHERS INC CENTURY TELEPHONE ENTERPRISES INC A SHELF OFFERING FOR UP TO 400 MILLION OF SENIOR DEBT SECURITIES GTE NORTHWEST INC A UNIT OF GTE CORP A SHELF OFFERING OF UP TO 300 MILLION OF DEBENTURES HEALTH AND REHABILITATION PROPERTIES TRUST AN OFFERING OF 10 MILLION COMMON SHARES OF BENEFICIAL INTEREST WITH AN OVERALLOTMENT OPTION FOR 15 MILLION ADDITIONAL SHARES VIA MERRILL LYNCH DONALDSON LUFKIN & JENRETTE SECURITIES CORP PAINEWEBBER INC AND SMITH BARNEY SHEARSON INC PERRY DRUG STORES INC A PROPOSED OFFERING OF 75 MILLION OF SENIOR NOTES REEVES HOLDINGS INC AN OFFERING OF 170 MILLION OF SENIOR DISCOUNT DEBENTURES VIA DONALDSON LUFKIN & JENRETTE AND MERRILL LYNCH SUGEN INC AN INITIAL OFFERING OF 2250000 COMMON SHARES AT AN ANTICIPATED 12 TO 14 A SHARE VIA MORGAN STANLEY AND HAMBRECHT AND QUIST INC USX CORP A SHELF OFFERING FOR UP TO 750 MILLION OF DEBT SECURITIES 9404010067 940401 ECONOMY HOMEMORTGAGE RATES RISE ABOVE 8 FOR FIRST TIME IN MORE THAN A YEAR BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE FIRST TIME IN MORE THAN A YEAR RATES ON A 30YEAR CONVENTIONAL MORTGAGE HAVE SURGED ABOVE 8 BUT REALESTATE AGENTS AND BUILDERS DON'T EXPECT ANY MAJOR DAMPING OF THE HOUSING MARKET UNLESS INTEREST RATES INCREASE SIGNIFICANTLY FURTHER THE 30YEAR RATE CLIMBED TO 816 YESTERDAY FROM 790 LAST WEEK ACCORDING TO HSH ASSOCIATES A MORTGAGEINFORMATION PUBLISHER FRANK NOTHAFT DEPUTY CHIEF ECONOMIST AT THE FEDERAL HOME LOAN MORTGAGE CORP SAID THAT WHILE HOME BUYING IS THE MOST INTEREST RATESENSITIVE SECTOR OF THE ECONOMY MORTGAGE RATES ARE STILL NEAR A 20YEAR LOW THESE MORTGAGE RATES ARE STILL EXCEPTIONALLY GOOD HE SAID ONLY RAPID ECONOMIC GROWTH OR HIGH INFLATION COULD SEND RATES HIGHER HE ADDED STILL THE JUMP IN RATES HAS AN INITIAL EFFECT OF PUSHING PEOPLE WHO MAY HAVE PLANNED TO WAIT INTO BUYING HOMES RICHARD J LOUGHLIN PRESIDENT AND CHIEF EXECUTIVE OFFICER AT CENTURY 21 ONE OF THE COUNTRY'S LARGEST REALESTATE COMPANIES SAID THAT JANUARY AND FEBRUARY SALES WERE UP 20 FROM A YEAREARLIER BECAUSE PEOPLE RUSHED TO GRAB HOMES BEFORE RATES GOT ANY HIGHER MR LOUGHLIN SAID THAT CALIFORNIA SALES HAVE JUMPED EVEN MORE INCREASING 25 IN THE SAME PERIOD THE RISE IN RATES HAVE BROUGHT AN AWFUL LOT OF BUYERS INTO THE MARKET PLACE THAT HAS STIMULATED HOME SALES TREMENDOUSLY HE SAID SINCE JANUARY 1993 INTEREST RATES STEADILY SLID DOWNWARD FROM ABOUT 8 AND PLUNGED BELOW 7 FROM AUGUST TO OCTOBER BEFORE SPIKING UP AT THE END OF THE YEAR RATES STARTED TO MOVE UP AGAIN THIS YEAR PICKING UP STEAM AND A FULL PERCENTAGE POINT IN THE LAST TWO MONTHS SPURRED BY FALLING BOND PRICES HISTORICALLY UNTIL WE GET TO DOUBLEDIGIT RATES WE'RE ABLE TO SELL HOUSES SAID IRA NORRIS CHIEF EXECUTIVE AND CHAIRMAN OF INCO HOMES CORP A CALIFORNIA BUILDER THE INCREASE HE SAID WILL PUSH MORE PEOPLE INTO THE MARKET THAN IT WILL PUSH OUT CHANDLER BARTON PRESIDENT AND CHIEF EXECUTIVE AT COLDWELL BANKER CORP ANOTHER LARGE REALESTATE COMPANY SAID THAT THE INCREASE WILL MOSTLY HURT FIRSTTIME BUYERS WHO MIGHT FIND IT HARDER TO QUALIFY FOR LOANS WITH THE PRETAX COST ON A 150000 HOME INCREASING BY ABOUT 1200 A YEAR JOHN TUCCILLO CHIEF ECONOMIST AT THE NATIONAL ASSOCIATION OF REALTORS SAID HE EXPECTS RATES TO HOVER AT 8 FOR FOUR TO FIVE MONTHS BEFORE DECLINING SOMEWHAT MR TUCCILLO SAID THAT HOME SALES COULD FALL SLIGHTLY FROM AN EXPECTED 39 MILLION TO 38 MILLION THIS YEAR BECAUSE OF THE INCREASE BUT WOULD STILL BE HEALTHY I DON'T THINK INTEREST RATES WILL GO UP ENOUGH TO TAKE THE BLOOM OFF THIS YEAR HE SAID HOWEVER ONE PROMINENT HOUSING EXECUTIVE WARNED THAT THE LATEST INCREASE WILL EVENTUALLY TAKE A TOLL WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKER'S ASSOCIATION SAID THAT THE INCREASE REPRESENTS AN IMPORTANT PSYCHOLOGICAL THRESHOLD AND COULDN'T COME AT A WORST TIME THE START OF THE SPRING BUYING SEASON EVEN IF RATES CLIMB NO HIGHER HE SAID THE INCREASE WILL TRIM 300000 TO 400000 HOME SALES FROM THE ECONOMY THIS YEAR THIS RUNUP IN RATES IS GOING TO THROTTLE SOME PEOPLE'S INTEREST IN BUYING A HOME MR LASKO SAID 9404010066 940401 THURSDAY'S MARKETS STOCKS RECOVER AFTER EARLY FALL BONDS INCREASE BY ANITA RAGHAVAN AND ROBERT MCGOUGH STAFF REPORTERS OF THE WALL STREET JOURNAL STOCKS WENT ON ANOTHER ROLLERCOASTER RIDE FALLING SHARPLY IN THE MORNING ONLY TO END THE DAY MIXED LONGTERM BOND PRICES ROSE AFTER A WILD DAY OF TRADING AND THE DOLLAR FELL REVERSING A FIVEDAY LOSING STREAK THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 921 POINTS TO 363596 AFTER DROPPING 67 POINTS EARLIER IN THE DAY STANDARD & POOR'S 500STOCK INDEX EDGED UP 021 TO 44577 THE NASDAQ COMPOSITE INDEX SLUMPED 145 TO 74346 STOCK ANALYSTS BLAMED WEAKNESS IN BONDS FOR THE EARLY SELLOFF IN STOCKS BOND PRICES TUMBLED IN THE MORNING AFTER THE CHICAGO PURCHASING MANAGEMENT ASSOCIATION REPORTED THAT ITS INDEX OF AREA BUSINESS ACTIVITY ROSE TO 665 IN MARCH FROM 603 IN FEBRUARY BUT BOND PRICES ROARED BACK IN THE AFTERNOON AS TRADERS RUSHED TO COVER BEARISH BETS BEFORE TODAY'S REPORT ON MARCH EMPLOYMENT CONDITIONS YOU ARE SEEING A VERY VERY SKITTISH MARKET THAT WAS ALL OVER THE PLACE SAID MICKEY LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK IN THE LATEST SIGN OF HOW JITTERY BOND AND STOCK INVESTORS ARE CHARLES SCHWAB THE BIG DISCOUNT BROKERAGE FIRM SAID ITS BROKERAGE CUSTOMERS TOOK 295 MILLION OUT OF STOCK AND BOND FUNDS IN THE FIRST THREE DAYS OF THIS WEEK THIS IS THE FIRST TIME SINCE WE'VE BEEN DOING THIS THAT WE HAD A REVERSAL OF THIS KIND SAID A SCHWAB SPOKESMAN HE NOTED THAT THE REDEMPTIONS COULD BE COMING FROM MARKET TIMERS WHO RAPIDLY MOVE IN AND OUT OF THE MARKET AS IT RISES AND FALLS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 059 TO 11177 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 398825650 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 752 ISSUES ROSE AND 1532 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE ALMOST A QUARTER OF A POINT OR NEARLY 250 FOR EACH 1000 FACE AMOUNT TO YIELD 708 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16735 MARKS AND 10260 YEN COMPARED WITH 16750 MARKS AND 10285 YEN ON WEDNESDAY 9404010065 940401 BIG BOARD TAKES DISCIPLINARY ACTION AGAINST 8 PEOPLE BY ANN PODD STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTION AGAINST EIGHT INDIVIDUALS FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS NONE OF THE INDIVIDUALS COULD BE REACHED IMMEDIATELY OR HAD ANY COMMENT THEODORE FREDERICK SAUNDERS SOUTH SALEM NY A FORMER BROKER WAS BARRED FOR TWO YEARS WITHOUT ADMITTING OR DENYING FINDINGS OF SALESPRACTICE MISCONDUCT INCLUDING RECOMMENDING UNSUITABLE TRANSACTIONS IN SEVERAL ACCOUNTS PETER BENEDICT STEEGE DENVER A FORMER BROKER WAS SUSPENDED FOR SIX MONTHS AND PLACED UNDER SPECIAL SUPERVISION FOR SIX MONTHS WITHOUT ADMITTING OR DENYING FINDINGS OF SALES PRACTICEMISCONDUCT IN FIVE CUSTOMER ACCOUNTS ERIC LAWRENCE DAVIDS YORKTOWN HEIGHTS NY A FORMER BROKER WAS BARRED PERMANENTLY WITHOUT ADMITTING OR DENYING FINDINGS THAT HE MISAPPROPRIATED CUSTOMER FUNDS FORGED CUSTOMERS' NAMES ENTERED UNAUTHORIZED ACCOUNT TRANSFERS AND FAILED TO DISCLOSE THAT HE WAS THE SUBJECT OF A BIG BOARD INVESTIGATION JIMMY EZRA GREENE SAGINAW MICH A FORMER BROKER WAS BARRED PERMANENTLY WITHOUT ADMITTING OR DENYING FINDINGS THAT HE MISAPPROPRIATED CUSTOMER FUNDS ENTERED UNAUTHORIZED ACCOUNT TRANSFERS SENT A CUSTOMER A FORGED LETTER AND FAILED TO FURNISH BIG BOARDREQUESTED RECORDS KEVIN J MEDLIN BROOKLYN NY A FORMER CLERK WAS BARRED PERMANENTLY WITHOUT ADMITTING OR DENYING FINDINGS THAT HE MISAPPROPRIATED EMPLOYER SUPPLIES AND EQUIPMENT JAMES D WILLIAMS ERIAL NJ A FORMER BRANCHOFFICEOPERATIONS MANAGER WAS BARRED PERMANENTLY WITHOUT ADMITTING OR DENYING FINDINGS THAT HE MISAPPROPRIATED CUSTOMER AND EMPLOYER FUNDS AND FORGED A CUSTOMER'S SIGNATURE MICHAEL LEONARD HERMAN DETROIT A FORMER BROKER WAS BARRED UNTIL HE COMPLIES WITH BIG BOARD REQUESTS THAT HE TESTIFY CONCERNING CERTAIN MATTERS WHILE EMPLOYED MARLON ISAAC RICHMOND HILL NY A FORMER EMPLOYEE OF A MEMBER FIRM WAS BARRED UNTIL HE SUBMITS A WRITTEN EXPLANATION CONCERNING CERTAIN MATTERS WHILE EMPLOYED 9404010064 940401 LEISURE & ARTS THEATER THE LA RIOTS ON STAGE BY MELANIE KIRKPATRICK NEW YORK A TIP FROM MY UNWRITTEN HANDBOOK OF THEATERGOING BEWARE PROGRAMS WITH INSERTS THERE IS A PRACTICAL REASON FOR THIS DISLIKE INSERTS HAVE A NASTY HABIT OF FLUTTERING TO THE FLOOR UNDER THE SEAT IN FRONT OF ME FORCING ME TO TICKLE STRANGERS' ANKLES OR RUMMAGE IN THEIR BRIEFCASES TO RETRIEVE THEM BUT THERE IS AN ARTISTIC REASON AS WELL INSERTS ALMOST ALWAYS EXPLANATORY MATERIAL TEND TO DEFLECT ATTENTION FROM THE MATTER AT HAND WHICH IS OF COURSE THE PLAY IF AN AUDIENCE'S APPRECIATION OF A SHOW REALLY DEPENDS ON THAT YIDDISH GLOSSARY OR THAT FAMILY TREE THEN THE SHOW IS LIKELY TO BE INACCESSIBLE TO US ORDINARY MORTALS AND SO IT WAS WITH SOME TREPIDATION THAT I OPENED THE PROGRAM FOR ANNA DEAVERE SMITH'S TWILIGHT LOS ANGELES 1992 AN INSERT OF FOUR PAGES FELL OUT ONTO MY RAIN BOOTS IN TEENY WEENY TYPE IT LISTED A CHRONOLOGY OF EVENTS SURROUNDING THE LA RIOTS WORSE THE INSERT WHICH OPENS WITH A CLINTONESQUE ATTACK ON THE '80S VIOLATED ANOTHER OF MY RULES BEWARE PLAYS THAT TRUMPET THEIR POLITICAL POSITIONS BEFORE THE CURTAIN EVEN RISES BUT THEN TWILIGHT IS NO ORDINARY PLAY IT'S THE CLOSEST THE THEATER COMES TO DOCUMENTARY AND IT'S IMPOSSIBLE TO VIEW IT OUTSIDE A POLITICAL CONTEXT IN FACT PART OF ITS MISSION IS TO BE POLEMICAL MS SMITH THE WRITER AND SOLE PERFORMER OF TWILIGHT HAS A WELLDESERVED REPUTATION AS AN ASTUTE CHRONICLER OF DIVISIVE EVENTS IN AMERICA TWO YEARS AGO IN FIRES IN THE MIRROR SHE CHRONICLED THE RACIAL ANIMOSITY IN CROWN HEIGHTS BROOKLYN BOTH FIRES IN THE MIRROR AND TWILIGHT ARE PART OF A SERIES OF THEATRICAL PIECES SHE CALLS ON THE ROAD A SEARCH FOR THE AMERICAN CHARACTER MS SMITH'S METHOD IS UNIQUE SHE INTERVIEWS PARTICIPANTS AND OBSERVERS OF AN EVENT IN THIS CASE THE LA RIOTS AFTER THE FIRST RODNEY KING VERDICT AND THEN USING THEIR WORDS VERBATIM PLAYS THOSE PERSONS ON STAGE IN TWILIGHT SHE RECREATES HER INTERVIEWS WITH NEARLY 40 PEOPLE MEN AND WOMEN YOUNG AND OLD FAMOUS AND ORDINARY BLACK WHITE HISPANIC AND KOREAN SHE WEARS ONLY A WHITE SHIRT BLACK PANTS AND AN OCCASIONAL ACCESSORY SUN GLASSES RED SPIKE HEELS A BASEBALL CAP MS SMITH'S TECHNIQUE WORKED ENORMOUSLY WELL IN FIRES IN THE MIRROR A RIVETING SHOW BUT SOMEHOW EVEN THOUGH TWILIGHT IS ORGANIZED ALONG THE SAME PRINCIPLES IT LACKS A SOUL AND MS SMITH OFTEN SEEMS MORE TO MIMIC HER CHARACTERS THAN TO RECREATE THEM HER SUBJECT RACIAL CONFLICT IN LOS ANGELES TENDS TO BE PAINTED IN SHADES OF BLACK AND WHITE NOT GRAY PART OF THE PROBLEM IS THE MATERIAL ONLY A FEW OF HER LA CHARACTERS SPEAK WITH THE POWER AND THE POETRY OF THE MEN AND WOMEN OF CROWN HEIGHTS MOST NOTABLE FOR ME ARE A PREGNANT WOMAN WHOSE UNBORN CHILD TOOK A BULLET A BEWILDERED KOREAN HOUSEWIFE WHOSE ELDERLY HUSBAND IS INJURED AND A HISPANIC WHO SAYS HE DOESN'T THINK OF HIS WHITE FRIENDS AS REALLY BEING WHITE THESE ARE ORDINARY PEOPLE WHO SPEAK WITHOUT CANT OR WITHOUT WORRYING MUCH ABOUT POLITICAL CORRECTNESS THE CHARACTERS WHO VERGE MOST ON CARICATURE ARE THE FAMOUS ONES A PONDEROUS SEN BILL BRADLEY AN INTENSE LANI GUINIER A CREEPILY SUAVE DARYL GATES BUT THE BIGGER PROBLEM IS HOW MS SMITH HAS ORGANIZED OR NOT ORGANIZED HER MATERIAL AS JOE MORGENSTERN NOTED IN A REVIEW ON THIS PAGE OF AN EARLIER INCARNATION OF TWILIGHT IN LOS ANGELES LAST JUNE IN AIMING AT DIVERSITY MS SMITH ACHIEVES DIFFUSENESS TWILIGHT IS A CACOPHONY OF VOICES NOT A SYMPHONY THERE IS NO ILLUMINATING THEME IT DOESN'T PRESS US TO LOOK AT THE LA RIOTS IN A NEW WAY NOW AT THE OFFBROADWAY PUBLIC THEATRE TWILIGHT IS HEADED FOR BROADWAY SHORTLY AND PERHAPS BECAUSE OF THAT THE PRODUCTION DIRECTED BY GEORGE C WOLFE IS MORE ELABORATE THAN MANY OFFBROADWAY SHOWS SLIDES AND VIDEOS NOTABLY THE BEATING OF RODNEY KING ARE PROJECTED ON THE BACK OF THE STAGE SCENERY IS WHISKED IN AND OUT OF THE WINGS ON ROLLERS ORIGINAL MUSIC BY WENDY BLACKSTONE ADDS CONTINUITY ONEPERSON SHOWS CAN GET LOST IN THE BIG BROADWAY HOUSES AND TWILIGHT CLEARLY HOPES TO AVOID THAT PITFALL IF ANNA DEAVERE SMITH RUNS THE RISK OF RATTLING AROUND HER BROADWAY STAGE OVER AT THE MANHATTAN THEATER CLUB'S LILLIPUTIAN STAGE II THE CAST OF 12 RUN THE RISK OF RUNNING INTO EACH OTHER IN THEIR MERRY ROMP THROUGH THE ARABIAN NIGHTS WRITTEN AND DIRECTED BY MARY ZIMMERMAN THE ARABIAN NIGHTS ARRIVED HERE ON A MAGIC CARPET FROM CHICAGO WHERE IT PREMIERED AT THE LOOKINGGLASS THEATRE COMPANY IN 1992 SCHEHERAZADE'S 1001 STORIES NEVER LOOKED OR SOUNDED SO GOOD THESE ARE NOT BEDTIME TALES FOR KIDDIES THEY ARE OFTEN BAWDY MORALITY FABLES EXUBERANTLY ACTED BY A RAMBUNCTIOUS TROUPE NINE OF SCHEHERAZADE'S STORIES ARE PERFORMED AT THAT RATE MS ZIMMERMAN HAS ENOUGH MATERIAL FOR 110 SEQUELS YOKO ONO ON THE OTHER HAND HARDLY HAS ENOUGH MATERIAL FOR A SINGLE SHOW HER MUSICAL NEW YORK ROCK IS A SACCHARINE STORY OF A BOY WITH A GUITAR WHO FIRST LOSES HIS MOTHER TO THE VIOLENCE OF NEW YORK CITY AND THEN LOSES HIS OWN LIFE ALONG THE WAY HE FINDS TRUE LOVE WITH A WOMAN WHO HAS BEEN ABUSED BY HER FORMER LOVER THE GRIEVING GIRLFRIEND BECOMES A STREETWALKER AND FINALLY FINDS REDEMPTION IN A BOY WHOSE FATHER HAS ABANDONED HIM THE SHOW ENDS WITH THE WHOLE CAST THROWING AWAY THEIR GUNS JUST ANOTHER DAY IN THE BIG CITY THE MUSIC IS A THROWBACK TO THE '70S PLEASANT ENOUGH TUNES SUNG BY EXCELLENT VOICES AND PLAYED BY A HOT BAND THAT IS TOO GOOD FOR THEM AND THEN THERE ARE THE LYRICS THE NICEST THING I CAN THINK TO SAY ABOUT THEM IS THAT THEY'RE MEANT FOR SOMEBODY WHO STILL WEARS LOVE BEADS CONSIDER THE LINES A DREAM WE DREAM ALONE IS ONLY A DREAM BUT A DREAM WE DREAM TOGETHER IS REALITY OR THERE MAY NOT BE MUCH DIFFERENCE BETWEEN WOODY ALLEN AND MOTHER TERESA IF WE STRIPPED THEM NAKED ON SECOND THOUGHT IF YOU WANT TO BE IN THE MOOD FOR THIS LOVE BEADS WON'T DO THE TRICK DON'T FORGET YOUR ALICE B TOKLAS BROWNIES 9404010062 940401 HEARD ON THE STREET BROKERAGE HOUSES FACE NEW PRESSURE BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMID THE CARNAGE IN BROKERAGE STOCKS WALL STREET SMELLS BLOOD NOT OPPORTUNITY YESTERDAY BROUGHT NEWS THAT THE DOLLAR VOLUME OF NEW STOCK AND BOND ISSUES FELL IN THE FIRST QUARTER THE FIRST SUCH DROP SINCE 1990 TO MANY THAT SIGNALED AN END TO THE FEROCIOUS THREEYEAROLD UNDERWRITING BOOM THE DOLLAR VOLUME OF NEW STOCKS AND BONDS SOLD IN THE QUARTER SLIPPED 3 FROM A YEAR EARLIER TO 2621 BILLION ACCORDING TO SECURITIES DATA CO TO MONEY MANAGERS AND ANALYSTS WHO FOLLOW BROKERAGEHOUSE STOCKS ALL THIS MEANS THE GROUP'S 1993 RECORD EARNINGS AND INDUSTRY HUBRIS ARE FAST BECOMING A FOND MEMORY WE'VE ALREADY GONE PAST THE PEAK OF EARNINGS IN THE BROKERAGE INDUSTRY SAYS DOUGLAS KASS CHIEF OF RESEARCH FOR JW CHARLES/CSG THE BOCA RATON FLA BROKERAGE SUBSIDIARIES OF CORPORATE MANAGEMENT GROUP THE SLOWDOWN IN THE UNDERWRITING BUSINESS IS BAD NEWS FOR WALL STREET HITTING THE INDUSTRY ONLY WEEKS AFTER IT PAID OUT THE HEFTIEST BONUSES IN ITS HISTORY AND JUST AFTER SEVERAL FIRMS HAVE LAUNCHED HIRING BINGES AND AGGRESSIVE PUSHES FOR NEW CLIENTS WITH THE WISDOM OF HINDSIGHT IT NOW APPEARS THAT THE PEAK OF WALL STREET'S BOOM CAME IN THE 1993 THIRD QUARTER AT LEAST IN TERMS OF THE NUMBER OF DEALS THIRDQUARTER UNDERWRITINGS TOTALED 1961 STOCK AND BOND DEALS WHILE IN THE FIRST QUARTER 1660 CAME TO MARKET ACCORDING TO SECURITIES DATA BROKERAGE STOCKS PEAKED IN THE THIRD QUARTER AND ARE NOW TRADING AT 20 TO 30 BELOW THE HIGHS REACHED THEN MERRILL LYNCH THE NATION'S LARGEST BROKERAGE HOUSE HIT A SPLITADJUSTED 51 1/8 BUT WAS AT 37 1/4 OFF 3/4 YESTERDAY MORGAN STANLEY ACHIEVED A HIGH OF 89 5/8 IN SEPTEMBER BEFORE EASING TO YESTERDAY'S 64 OFF 5/8 AG EDWARDS HIT A 52WEEK LOW OF 17 7/8 NOW SENTIMENT ON THE BROKERAGE INDUSTRY IS SPLIT BETWEEN THOSE ANALYSTS AND WALL STREET OFFICIALS WHO HAVE MERELY BEEN SOBERED UP BY THE UNDERWRITING DATA AND THE MARKET'S RECENT FALL AND THOSE MONEY MANAGERS AND SHORTSELLERS WHO ARE ALL BUT YELLING MAN THE LIFEBOATS SO FAR IT'S ONLY BEEN A COUPLE OF BAD DAYS SAYS MORGAN STANLEY BROKERAGE ANALYST DAVID HILDER NONETHELESS INVESTORS WHO BOUGHT BROKERAGE STOCKS BELIEVING THAT A REBOUND TO 1993 HIGHS IS COMING ARE DRIVING BY LOOKING AT THE REARVIEW MIRROR MR HILDER INSTITUTED COVERAGE OF MERRILL LYNCH THIS WEEK WITH A HOLD RECOMMENDATION BECAUSE THE STOCK'S UNLIKELY TO OUTPERFORM THE MARKET IN 1994 SIMILARLY GUY MOSZKOWSKI AN ANALYST AT SANFORD C BERNSTEIN MADE A HOLD RECOMMENDATION ON SALOMON INC EARLIER THIS WEEK IN FACT FOR SHORT SELLERS WHO HAVE BEEN BEATING THE BUSHES ON BROKERAGE STOCKS FOR MONTHS THE EVENTS OF THE PAST FEW DAYS HAVE OFFERED ONE BIG CHANCE TO SAY I TOLD YOU SO LATE LAST WEEK MICHAEL MURPHY NEWSLETTER WRITER AND MONEY MANAGER ADVISED SHORTING THE STOCK OF SAN FRANCISCO DISCOUNT BROKER CHARLES SCHWAB AT 30 1/8 THE STOCK CLOSED YESTERDAY AT 26 7/8 HE'S STILL BEARISH ON SCHWAB AND MOST OF THE OTHER BROKERAGE FIRMS SHORT SELLERS BORROW STOCK AND SELL IT EXPECTING TO PROFIT BY RETURNING CHEAPER SHARES TO THE LENDER LATER ON THE REASON IT LOOKS LIKE IT'S ALL OVER RIGHT NOW IS THAT THE BULL MARKET WAS DRIVEN BY LOW INTEREST RATES THAT ARE A THING OF THE PAST MR MURPHY SAYS WE SEE NOT A DISASTER OR CRASH BUT A GRINDING SORT OF LONG MARKET DECLINE ACCORDING TO MR KASS BROKERAGE FIRMS THAT WILL FARE BEST ARE THOSE THAT HAVE HISTORICALLY SHOWN THEY CAN DOWNSIZE MOST RAPIDLY SUCH AS BEAR STEARNS AND ALEX BROWN MERRILL LYNCH AND DISCOUNT BROKERS WILL BE SLOWER TO REACT TO THE CHANGING MARKET CLIMATE HE PREDICTS AMONG THE BROKERAGEHOUSE STOCKS VIEWED BY ANALYSTS AND MONEY MANAGERS AS MOST ABLE TO RIDE OUT THE DOWNTURN DEAN WITTER DISCOVER WHICH HAS ITS DISCOVER CREDITCARD BUSINESSES TO FALL BACK ON AND TRAVELERS INC'S SMITH BARNEY SHEARSON HOWEVER NAYSAYERS NOTE THAT WHILE TRAVELERS INSURANCE BUSINESS MAKES THIS STOCK A DIVERSIFIED PLAY SMITH BARNEY'S EFFORTS TO BUILD AN INVESTMENTBANKING OPERATION ARE LESS THAN A YEAR OLD WIDELY SEEN AS ESPECIALLY VULNERABLE ARE THE BROKERAGE HOUSES CATERING TO SMALL INVESTORS INCLUDING CHARLES SCHWAB TO BE SURE THE BROKERAGE INDUSTRY'S INCOME BASE IS MUCH MORE DIVERSIFIED THAN IT WAS WHEN THE OCTOBER 1987 CRASH PROMPTED A SAVAGE INDUSTRYWIDE RETRENCHMENT MANY BROKERAGE FIRMS EARN SUBSTANTIAL INCOME FROM LESSCYCLICAL ACTIVITIES SUCH AS FEEBASED MONEYMANAGEMENT ACCOUNTS AND GLOBAL UNDERWRITING MOREOVER SAVVY TRADERS CAN MAKE BIG MONEY EVEN IN DOWN MARKETS AND EVEN IF UNDERWRITING VOLUME CONTINUES TO SLIP FROM 1993'S BLISTERING PACE WALL STREET WOULD STILL BE DOING GOOD BUSINESS DAVID KOMANSKY EXECUTIVE VICE PRESIDENT IN CHARGE OF EQUITIES AND FIXEDINCOME OPERATIONS AT MERRILL SAYS THAT BEARS ON THE BUSINESS ARE MISSING A HUGE AND RECENT CHANGE IN THE NATURE OF WALL STREET THE BIGGEST CHANGE HAS BEEN THE STREET'S ABILITY TO DO BUSINESS AROUND THE WORLD THE FULL DIMENSIONS OF THE OVERSEAS MARKET AND THE PROFITABILITY IT REPRESENTS HAVEN'T BEEN APPRECIATED HE SAYS IN FACT WALL STREET OFFICIALS AND ANALYSTS EVENTUALLY SEE THE BROKERAGE INDUSTRY SPLITTING INTO A TWOTIER MARKET THE FIRMS THAT DON'T DISTRIBUTE INTERNATIONALLY SUCH AS THE DISCOUNT BROKERS AND THOSE THAT DO FOR NOW HOWEVER MOST OF THE INDUSTRY'S MONEY IS MADE IN THE US IN A CLIMATE THAT MANY AGREE IS TURNING SOUR INVESTORS LOOKING TO LEAVE BROKERAGE STOCKS MAY ENJOY TWO UPWARD BLIPS IN COMING WEEKS ANALYSTS SAY ONE AROUND TAXTIME WHEN ANNUAL MONEY MANAGEMENT PROMPTS SOME PEOPLE TO PUT CASH INTO THE STOCK MARKET AND AT THE RELEASE OF FIRSTQUARTER EARNINGS WHICH MOST ANALYSTS PREDICT WILL BE GOOD DESPITE THE STREET'S WIDESPREAD TRADING LOSSES IN FEBRUARY BUT OVERALL ARGUES MR KASS RIGHT NOW THERE ARE SOME CASINO STOCKS THAT ARE SAFER THAN PLAYING WALL STREET 9404010061 940401 LEHMAN BROTHERS PLANS PRETAX CHARGE OF 30 MILLION FOR SEVERANCE PAYMENTS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LEHMAN BROTHERS HOLDINGS INC PLANS TO TAKE A PRETAX CHARGE OF 30 MILLION FOR SEVERANCE PAYMENTS STEMMING FROM AN AGGRESSIVE COSTCUTTING DRIVE THE MOVE BY THE AMERICAN EXPRESS CO UNIT WAS DISCLOSED IN DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN PREPARATION FOR LEHMAN'S SPINOFF LATER THIS SPRING AS PREVIOUSLY REPORTED LEHMAN THIS YEAR HAS FORCED THE DEPARTURE OF AS MANY AS 400 INVESTMENT BANKERS TRADERS AND SALESPEOPLE THE EXPECTED CHARGE WILL BE RECORDED AGAINST FIRSTQUARTER EARNINGS THE FILING PRESENTS THE CLEAREST PICTURE TO DATE OF LEHMAN'S FINANCIAL AFFAIRS A SEPARATE REGULATORY FILING SPELLING OUT THE TERMS OF THE LEHMAN SPINOFF IS EXPECTED WITHIN DAYS LEHMAN STOCK ISN'T LIKELY TO BE PUBLICLY TRADED UNTIL THE END OF MAY AT THE EARLIEST BUT THE FIRM'S SPINOFF COMES AT AN INOPPORTUNE TIME INVESTORS' LOVE AFFAIR WITH EQUITIES HAS COOLED SHAKEN BY THE STOCK MARKET'S RECENT DIVE INTEREST RATES ARE RISING CUTTING INTO BROKERAGEFIRM PROFITS AND THE THREEYEAR UNDERWRITING BOOM HAS SLOWED AS PART OF THE SPINOFF AMERICAN EXPRESS PLANS TO MAKE A CAPITAL INFUSION OF MORE THAN 1 BILLION DOUBLE WHAT IT HAD ANTICIPATED TO BOLSTER LEHMAN'S BALANCE SHEET AND TO MEET DEMANDS BY CREDITRATING AGENCIES IN ALL LEHMAN WILL RECEIVE AN ADDITIONAL EQUITY INVESTMENT OF ABOUT 125 BILLION BEFORE ITS SHARES ARE AVAILABLE TO THE PUBLIC THE FILING SAID LEHMAN'S PROFIT PERFORMANCE PALES IN COMPARISON WITH BROKERAGE GIANTS MERRILL LYNCH & CO AND MORGAN STANLEY GROUP INC AMONG OTHERS DURING THE PAST THREE YEARS THE BIGGEST BULL MARKET EVER FOR THE BROKERAGE BUSINESS LEHMAN MANAGED NET INCOME TOTALING JUST 18 MILLION THE FILING SAYS PART OF THE TEPID PERFORMANCE STEMMED FROM VARIOUS CHARGES AS WELL AS A 630 MILLION LOSS ON THE 1993 SALE OF THE SHEARSON BROKERAGE BUSINESS TO PRIMERICA CORP NOW TRAVELERS INC BUT THE FIRM IS MAKING SOME STRIDES REVENUE FROM BOND TRADING IN 1993 ROSE 13 TO 759 MILLION FROM SOLID GAINS IN EMERGING MARKETS HIGHYIELD JUNK AND CORPORATEBOND TRADING THE FILING SAID THE BONDTRADING RESULTS WOULD HAVE BEEN HIGHER IF NOT FOR SLUMPING REVENUE FROM MORTGAGEBACKED BOND TRADING THE FILING SAID REVENUE FROM STOCK TRADING AND MARKETMAKING SWELLED 39 IN 1993 TO 338 MILLION PRIMARILY AS A RESULT OF HIGHER REVENUES FROM THE COMPANY'S PROPRIETARYTRADING ACTIVITIES ACCORDING TO THE FILING LEHMAN'S BIGGEST GROWTH AREA IS DERIVATIVES THESE PRODUCTS ARE FINANCIAL ARRANGEMENTS BETWEEN DEALERS AND INSTITUTIONAL INVESTORS WHOSE VALUES ARE LINKED TO OR DERIVED FROM FLUCTUATIONS IN THE PRICES OF STOCKS BONDS CURRENCIES OR OTHER ASSETS THESE INCLUDE FINANCIAL FUTURES FORWARD CONTRACTS OPTIONS AND SWAPS ON INTEREST RATES CURRENCIES AND STOCKS LEHMAN'S 1993 REVENUE FROM DERIVATIVES NEARLY TRIPLED TO 399 MILLION FROM 136 MILLION IN 1992 THE FILING SAID YET LEHMAN'S REVENUE FROM THIS AREA STILL LAGGED FAR BEHIND ITS RIVALS MERRILL FOR INSTANCE HAD 1993 DERIVATIVES REVENUE OF 761 MILLION THIS YEAR LEHMAN WILL START TRADING THROUGH A SEPARATELY CAPITALIZED DERIVATIVES UNIT THIS SUBSIDIARY IS EXPECTED TO INCREASE THE COMPANY'S CUSTOMER BASE AND THE VOLUME OF ACTIVITY IN ITS FIXEDINCOME DERIVATIVES BUSINESS AND CAPTURE ADDITIONAL UNDERWRITING BUSINESS THE FILING SAID 9404010060 940401 BALLPLAYER MAKES A PITCH TO THE YOUNG BY STEVE SAX ONE OF AMERICA'S GREAT RITUALS OPENING DAY OF THE BASEBALL SEASON IS NOW UPON US AS A PARTICIPANT IN THIS RITUAL FOR THE PAST 16 YEARS I CAN TESTIFY THAT ALTHOUGH IT HAS BECOME A SPORTS CLICHE THERE IS TRULY NOTHING LIKE PUTTING ON YOUR UNIFORM TO SPEND ANOTHER SUMMER PLAYING A KID'S GAME BASEBALL MORE THAN ANY OTHER SPORT IS ASSOCIATED WITH OUR HISTORY AND OUR MEMORIES AMERICANS VIEW BASEBALL ESPECIALLY WITH NOSTALGIA FOR SIMPLER MORE INNOCENT TIMES PICTURES OF CHILDREN AT THOSE EARLY GAMES COMPLETE WITH HOT DOGS AND COTTON CANDY REINFORCE THE NORMAN ROCKWELL SCENE WE YEARN TO RECREATE AS A FATHER OF TWO YOUNG CHILDREN I WISH THIS IDYLLIC PORTRAIT OF AMERICAN LIFE WERE THE WHOLE REALITY BUT LIKE OTHER AMERICANS I AM SADDENED AND DISTURBED BY WHAT HAS BEEN HAPPENING TO OUR YOUNG PEOPLE OVER THE PAST DECADE I USE MY OWN EXPERIENCE AS A GAUGE IN THE OFFSEASON I SPEND MUCH OF MY TIME GIVING SPEECHES AND TALKING TO SCHOOLCHILDREN AS SOMEONE WHO HAS BEEN CALLED A BLUECOLLAR PLAYER MAKING UP FOR LIMITED ABILITIES AT LEAST THE SPORTSWRITERS SAY THEY'RE LIMITED WITH HARD WORK I TRY TO IMPRESS UPON MY YOUNG AUDIENCES THE IMPORTANCE OF STAYING FOCUSED ON GOALS AND GIVING ONE'S ALL AND TO DEPEND ON ONE'S SELF NOT OTHERS INCLUDING THE GOVERNMENT NANNIES WHO SEEM TO HAVE SPRUNG UP AROUND CHILDREN OVER THE PAST FEW YEARS MORE AND MORE I WORRY ABOUT THE KIDS I MEET AS IT GETS HARDER TO TEACH YOUNG PEOPLE ABOUT THINGS LIKE INDEPENDENCE SELFRELIANCE AND A GOOD WORK ETHIC I THINK IT STARTS OFF WITH LITTLE THINGS FOR EXAMPLE I NOTICE AN INCREASING TOLERATION OF CRUDE LANGUAGE AND VULGARITY AS A BALLPLAYER I AM NOT A PRUDE WHEN IT COMES TO SUCH LANGUAGE YOU MIGHT AS WELL HANG UP YOUR SPIKES IF YOU ARE BECAUSE YOU'LL HEAR IT ALL ON A BALL FIELD BUT I KNOW THAT YOUNG CHILDREN'S USE OF SUCH LANGUAGE INDICATES SOMETHING MUCH MORE SERIOUS THAN BLOWING OFF STEAM AT AN UMPIRE I'VE BELIEVED THAT THERE WAS GENERAL AGREEMENT ON THE NEED TO INSTILL RESPECT IN OUR CHILDREN RESPECT FOR THEMSELVES AND FOR OTHERS AROUND THEM YET WHEN A YOUNG BOY AT A SCHOOL ASSEMBLY ASKS ME HEY SAX WHY THE F DID YOU LEAVE THE DODGERS MY FIRST THOUGHT IS THAT THERE HAS BEEN A BREAKDOWN HERE EVIDENTLY USING SUCH LANGUAGE IN SUCH A PUBLIC SETTING HAS BECOME THE NORM FOR MANY YOUNGSTERS WHICH MEANS THAT NO ONE IS TEACHING THESE KIDS ABOUT RESPECT FOR OTHERS OR THAT SUCH BEHAVIOR IS SIMPLY WRONG I SEE OTHER INDICATIONS OF THIS STUNTED CHARACTER DEVELOPMENT MANY YOUNG PEOPLE NOW SEEM TO THINK THAT RATHER THAN HAVING TO EARN THE THINGS THEY WANT THEY ARE IN A SOCIETY THAT OWES THESE THINGS TO THEM STORIES OF BABE RUTH SCRAPING HIS WAY OUT OF AN ORPHANAGE OR OF ROY CAMPANELLA OVERCOMING THE ADVERSITY OF HIS PARALYSIS TO LEAD A PRODUCTIVE LIFE SEEM LIKE ANCIENT HISTORY TO KIDS NOT SO MUCH BECAUSE THESE GREATS LIVED SO LONG AGO BUT BECAUSE OF THE SEA CHANGE IN ATTITUDE RECENTLY I HEARD OF AN EIGHTYEAROLD CHILD IN CALIFORNIA WHO TOLD A YOUTH OFFICER THAT HIS PHILOSOPHY WAS THAT IF THE OTHER PERSON WAS NOT STRONG ENOUGH TO KEEP SOMETHING THEN IT WAS ALL RIGHT FOR HIM TO TAKE IT A NATURAL EXTENSION OF THE I DESERVE EVERYTHING ATTITUDE THAT SEEMS PERVASIVE TODAY VIOLENT CRIMES COMMITTED BY YOUTHS HAVE NEARLY DOUBLED IN THE PAST TWO DECADES AND MANY OF THEIR VICTIMS ARE THE MOST HELPLESS AMONG US THE ELDERLY WHEN TAKING RATHER THAN EARNING IS THE PREFERRED MEANS TO ACHIEVING GOALS THEN THE LAW OF THE JUNGLE IS SURE TO FOLLOW CHANGING THE ATTITUDES OF OUR CHILDREN WILL REQUIRE MANY ADULTS TO CHANGE THEIR ATTITUDES WE MUST DO MORE THAN SIMPLY ASK OUR KIDS TO THINK ABOUT THEIR VALUES THINKING ABOUT VALUES WITHOUT A FIRM KNOWLEDGE OF RIGHT AND WRONG IS LIKE SEARCHING FOR BURIED TREASURE WITHOUT A COMPASS IT IS A WASTED EXERCISE RESPONSIBLE KIDS NEED A MORAL COMPASS BECAUSE AMORALITY AND RESPONSIBILITY ARE INCOMPATIBLE TO BE RESPONSIBLE IS TO ACKNOWLEDGE THAT HARD WORK INITIATIVE AND CONSIDERATION FOR OTHERS ARE GOOD AND THAT LAZINESS PARASITISM AND INCONSIDERATION ARE BAD HOW CAN WE EXPECT YOUNG PEOPLE TO BE INDEPENDENT IF WE ALSO SAY THAT DEPENDENCE IS OK AND WE HAVE TO EXPECT MORE FROM YOUNG PEOPLE YES SOME CHILDREN DO COME FROM UNDERPRIVILEGED BACKGROUNDS AND DIFFICULT FAMILY SITUATIONS BUT JUST BECAUSE THESE KIDS HAVE A COUPLE OF STRIKES AGAINST THEM DOES NOT MEAN THAT SOCIETY MUST THROW THEM THE THIRD STRIKE OF NOT EXPECTING THEM TO EXCEL FINALLY WE MUST NOT BE AFRAID OF THE CONCEPT OF DISCIPLINE PEOPLE OFTEN TALK ABOUT THE NEED TO LOVE OUR CHILDREN HOWEVER DISCIPLINE AND LOVE ARE TWO SIDES OF THE SAME COIN BY MAKING KIDS UNDERSTAND THE DIFFERENCE BETWEEN RIGHT AND WRONG BEHAVIOR OR THE NEED TO BEAR DOWN TO ACHIEVE A GOAL WE OFFER DISCIPLINE THAT BECOMES ONE OF THE BEST EXPRESSIONS OF OUR LOVE FOR OUR CHILDREN WHEN I SEE GOVERNMENTRUN BOOT CAMPS FOR JUVENILE DELINQUENTS MY THOUGHT IS THAT A LITTLE DISCIPLINE EARLY IN A CHILD'S LIFE WOULD HAVE SAVED HIM THIS MASSIVE DOSE LATER ON ON OPENING DAY AT COMISKEY PARK IN CHICAGO AND ALL AROUND THE MAJOR LEAGUES THOUSANDS OF KIDS WILL CHEER JUST AS IN SEASONS PAST BUT IF OUR CHILDREN AND OUR SOCIETY ARE TO HAVE ANY HOPE IN THE FUTURE WE CANNOT CONTINUE OUR CURRENT WAYS MR SAX AN INFIELDER WITH THE CHICAGO WHITE SOX IS A FIVETIME ALLSTAR AND FORMER ROOKIE OF THE YEAR 9404010059 940401 ENTERPRISE US ACTS AGAINST HEALTHINSURANCE FIRMS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE LABOR DEPARTMENT SAID IT WAS MOVING AGAINST ORGANIZATIONS THAT TYPICALLY OFFER LOWCOST HEALTH INSURANCE FOR SMALLBUSINESS WORKERS BUT OFTEN RENEGE ON CLAIMS THE DEPARTMENT'S PENSION AND WELFARE BENEFITS ADMINISTRATION FOUND THE INSURERS WERE OPERATING AS SOCALLED MULTIPLE EMPLOYER WELFARE ARRANGEMENTS OR MEWAS BUT UNDER THE GUISE OF EMPLOYEELEASING COMPANIES OR AS SHAM UNIONS MEWAS MANY OF THEM LEGITIMATE OFFER HEALTH INSURANCE OR OTHER BENEFITS TO WORKERS OF SEVERAL EMPLOYERS WHICH BAND TOGETHER TO FORM INSURANCE POOLS OR TO BUY GROUP COVERAGE THREE OF THE LAWSUITS INVOLVE THE DEPARTMENT'S FIRST CIVIL ACTIONS AGAINST ALLEGED ILLEGITIMATE WORKERLEASING COMPANIES THEY WERE FILED AGAINST EMPLOYEE STAFFING SERVICES INC OF DALLAS AND OTHER COMPANIES PARTLY OWNED BY ITS COOWNER CHARLES MICHAEL HOUCK JOB MATE AFFILIATED COS A JACKSON MISS COMPANY OWNED BY CHARLES HAROLD VAN DEVENDER AND HIS WIFE GEORGIA AND AMERICOR EMPLOYER SUPPORT SERVICES A SALT LAKE CITY COMPANY OWNED BY ERROL L PHILLIPS THAT IS CURRENTLY IN BANKRUPTCYLAW PROCEEDINGS TWO OTHER SUITS TARGET WHAT THE DEPARTMENT CALLED BOGUS LABOR UNIONS CONTRACT SERVICES UNION LOCAL 211 OF DALLAS WHICH THE DEPARTMENT SAID WAS A SHAM UNION FORMED BY FINANCIAL CONSULTANTS GUILD OF AMERICA INC WAS SUED IN OKLAHOMA CITY THE NATIONAL COUNCIL OF ALLIED EMPLOYEES INTERNATIONAL UNION LOCAL 555 AND ITS UNDERWRITER ENCINO CALIFBASED AMERICAN HEALTHCARE UNDERWRITING MANAGERS INC AND ITS SHAREHOLDERS WERE SUED IN LOS ANGELES IN THE SUIT INVOLVING CONTRACT SERVICES UNION LOCAL 211 THE DEPARTMENT SAID MORE THAN 460 BUSINESSES PUBLICSCHOOL DISTRICTS AND CHURCH GROUPS IN SIX STATES HAD SIGNED ON TO A HEALTHINSURANCE SCHEME THE PLAN HAS MORE THAN 13 MILLION IN UNPAID CLAIMS BUT THE DEFENDANTS ARE STILL RECRUITING MEMBERS AND DIVERTING SUBSTANTIAL AMOUNTS OF PLAN MONEY FOR THEIR OWN ENRICHMENT THE DEPARTMENT SAID MR REICH CITED A DALLASAREA SCHOOLTEACHER WHO WAS INSURED BY THE PLAN BUT COULDN'T COLLECT BENEFITS SHE WAS UNABLE TO FIND REPLACEMENT INSURANCE IT IS A TRAGIC PROBLEM FOR EMPLOYEES WHO THINK THEY HAVE HEALTH INSURANCE AND FIND OUT AT THE LAST MOMENT THAT THEY DON'T MR REICH SAID OFFICIALS AT AMERICAN HEALTHCARE UNDERWRITING MANAGERS DIDN'T RETURN CALLS SEEKING COMMENT JOB MATE AFFILIATED COS COULDN'T BE REACHED FOR COMMENT IN MELVILLE NY LEONARD MANDELBAUM WHO IDENTIFIED HIMSELF AS SECRETARY AND TREASURER OF FINANCIAL CONSULTANTS GUILD OF AMERICA SAID THE GUILD'S ATTORNEYS WERE UNAVAILABLE FOR COMMENT 9404010058 940401 TRISTAR CORP REACHES PACT WITH PROSECUTORS ON FRAUD INDICTMENT SAN ANTONIO TRISTAR CORP AND ITS PRESIDENT WERE INDICTED ON FEDERAL FRAUD CHARGES BUT REACHED AN ACCORD WITH PROSECUTORS TO DISMISS THE CASE AGAINST THE COMPANY AND ALLOW THE PRESIDENT TO PLEAD GUILTY TO A MISDEMEANOR FOUR FORMER EXECUTIVES OF TRISTAR WERE ACCUSED OF FRAUD IN THE INDICTMENT ISSUED BY A GRAND JURY IN GREENVILLE SC AND THOSE CHARGES ARE PENDING TRISTAR FORMERLY KNOWN AS ROSS COSMETICS DISTRIBUTION CENTERS INC MOVED LAST YEAR TO SAN ANTONIO FROM DUNCAN SC THE INDICTMENT STEMMED FROM THE COSMETICS COMPANY'S FAILURE TO DISCLOSE UNTIL OCTOBER 1992 THAT ITS MAIN SUPPLIER HAD BECOME ITS MAJORITY SHAREHOLDER THE SUPPLIER IS CONTROLLED BY TWO FAMILIES FROM DUBAI BOTH NAMED SHETH THREE OF THE FAMILY MEMBERS ARE PARTIES TO THE PLEA AGREEMENT WITH PROSECUTORS THEY ARE TRISTAR PRESIDENT VIREN SHETH DIRECTOR SHASHIKANT SHETH AND FORMER MANAGEMENT COMMITTEE MEMBER JAY SHETH THEY EACH AGREED TO PLEAD GUILTY TO A MISDEMEANOR VIOLATION OF SECURITIES LAW AND TO BE SENTENCED TO PROBATION AS PART OF THE PLEA ACCORD A COMPANY CONTROLLED BY THE SHETH FAMILIES AGREED TO PAY THE GOVERNMENT 55 MILLION THE FOUR FORMER EXECUTIVES NAMED IN THE INDICTMENT ARE ROSS FRIETAS WHO WAS FOUNDER AND CHAIRMAN EUGENE DERRY WHO WAS CHAIRMAN MICHAEL EMERY WHO WAS CHIEF OPERATING OFFICER AND ROGER ROSENBERG FORMER GENERAL COUNSEL NONE OF THE DEFENDANTS OR THEIR LAWYERS COULD BE REACHED FOR COMMENT IN NASDAQ STOCK MARKET TRADING YESTERDAY TRISTAR SHARES ROSE 50 CENTS TO 475 9404010056 940401 MARKETING & MEDIA PUBLIC TV IN NEW YORK CITY CONNECTICUT MAY MERGE SOME OPERATIONS TO CUT COSTS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN WHAT COULD BECOME A NATIONWIDE MODEL NEW YORK CITY'S WNET THE LARGEST PUBLICTELEVISION STATION IN THE COUNTRY AND CONNECTICUT PUBLIC BROADCASTING INC ARE EXPLORING CONSOLIDATING SOME OPERATIONS TO SAVE MONEY THE PROJECT WHICH WOULD NOT INCLUDE A MERGER OF THE STATIONS' PROGRAMMING COULD EVENTUALLY INCLUDE NEW JERSEY'S PUBLIC TELEVISION SYSTEM AS WELL THE CORPORATION FOR PUBLIC BROADCASTING WHICH FUNNELS FEDERAL FUNDS FOR PUBLIC BROADCASTING TO LOCAL STATIONS HAS BEEN URGING STATIONS TO COMBINE OPERATIONS TO REDUCE DUPLICATION AND OVERHEAD SUCH MOVES WOULD GIVE THE PUBLIC BROADCASTING SYSTEM WHICH IS SUFFERING FROM FUNDING CUTBACKS BY STATE GOVERNMENTS AND CORPORATE UNDERWRITERS MORE MONEY TO SPEND ON PROGRAMMING THE CPB HAS ESTIMATED THAT AS MANY AS ONETHIRD OF THE NATION'S 200 MARKETS WITH PUBLICTELEVISION STATIONS COULD BENEFIT FROM SUCH CONSOLIDATION WITHOUT A NEGATIVE EFFECT ON VIEWERS THERE ARE ABOUT 350 PUBLICTELEVISION STATIONS NATIONWIDE AND MORE ARE BEING PROPOSED EVERY YEAR DESPITE THE CPB'S EFFORTS TO CUT BACK THE NUMBER ALREADY MORE THAN HALF OF ALL TV VIEWERS RECEIVE MORE THAN ONE PUBLIC TV STATION THE NATION'S MORE THAN 620 PUBLIC RADIO STATIONS ARE ALSO BEING URGED BY THE CPB TO CONSOLIDATE THREE MERGERS HAVE ALREADY TAKEN PLACE AND NEARLY A DOZEN MORE ARE UNDER CONSIDERATION THE LARGEST BEING THE NEW YORKAREA STATIONS STILL THE PROSPECT OF SUCH MOVES HAS MET SOME RESISTANCE A PLAN TWO YEARS AGO FOR WNET TO MERGE OPERATIONS WITH THE NEW JERSEY PUBLIC STATIONS WHICH WERE IN FINANCIAL CRISIS FELL APART AFTER PUBLIC UPROAR WILLIAM BAKER WNET'S PRESIDENT SAYS HE IS OPEN TO CONSOLIDATIONS BUT IS NOT SEEKING THEM OUT PEOPLE ARE FEARFUL OF IT SAYS RICHARD CARLSON CPB'S PRESIDENT AND CHIEF EXECUTIVE THERE'S A LOT OF LOCAL PRIDE AND YEARS SPENT CONSTANTLY RAISING FUNDS BUILDING SOMETHING IN WAYS THAT HASN'T BEEN EASY STATIONS ARE FEARFUL OF LOSING THEIR IDENTITY THE PUBLICBROADCASTING SYSTEM IS SO OVERBUILT THAT EVEN IF THE THREE NEW YORK AREA ENTITIES COMBINED THE REGION WOULD BE LEFT WITH AT LEAST THREE OTHER PUBLICTELEVISION STATIONS THE NEW YORKAREA STATIONS ARE EXPLORING CONSOLIDATING BACKOFFICE OPERATIONS SUCH AS ACCOUNTING FUNDRAISING AND POSSIBLY PRODUCTION FACILITIES WHILE LEAVING PROGRAMMING ON THE STATIONS SEPARATE CONNECTICUT PUBLIC BROADCASTING'S FIVE TELEVISION STATIONS WOULD BE INCLUDED BUT ITS FOUR RADIO STATIONS AND A FORPROFIT PRODUCTION SUBSIDIARY MEDIAVISION INC WOULD NOT JERRY FRANKLIN CONNECTICUT PUBLIC BROADCASTING'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAYS HE HOPES THE ALLIANCE WOULD SAVE CONNECTICUT AS MUCH AS 1 MILLION OF ITS 20 MILLION BUDGET ANNUALLY THE SAVINGS COULD BE AS MUCH AS 10 MILLION FOR WNET WHICH HAS AN ANNUAL BUDGET OF 110 MILLION EXECUTIVES FROM CPB HAVE MET WITH THE CONNECTICUT AND NEW YORK STATIONS TO PUSH THE PROCESS ALONG AND MAY GIVE THE STATIONS FINANCIAL BACKING FOR THE PROJECT A FEW STATIONS HAVE ALREADY CARRIED OUT SUCH PROJECTS LAST YEAR THREE TV STATIONS AND TWO RADIO STATIONS IN THE UNIVERSITY OF MAINE SYSTEM AND THE COLBYBATESBOWDOIN EDUCATIONAL TELECASTING CORP COMBINED TWO RADIO STATIONS IN THE DENVER AREA ALSO MERGED AS DID AN FM STATION AND A TV STATION IN ALASKA NEW JERSEY PUBLICBROADCASTING EXECUTIVES COULD NOT BE REACHED FOR COMMENT 9404010055 940401 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 EMPRESS RIVER CASINO FINANCE CORP 150 MILLION OF SENIOR NOTES DUE APRIL 1 2002 PRICED AT PAR TO YIELD 1075 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP EMPRESS RIVER CASINO FINANCE IS A UNIT OF EMPRESS RIVER CASINO CORP FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF NOTES DUE APRIL 8 1999 PRICED AT PAR TO YIELD 6625 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR TWO YEARS AND WAS PRICED AT A SPREAD OF 33 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FIRST NATIONAL BANK OF BOSTON 100 MILLION OF FLOATINGRATE BANK NOTES DUE APRIL 7 1995 PRICED AT PAR THROUGH LEAD MANAGER GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE ISSUE FLOATS AND PAYS QUARTERLY AT THREE BASIS POINTS ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE AND IS RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P FIRST NATIONAL IS A UNIT OF BANK OF BOSTON CORP GREAT FINANCIAL CORP INITIAL PUBLIC OFFERING OF 163 MILLION SHARES PRICED AT 10 EACH THROUGH UNDERWRITER ADAMS COHEN SECURITIES INC ACCORDING TO THE COMPANY HANOVER DIRECT INC EIGHT MILLION SHARES PRICED AT 6375 EACH THROUGH MERRILL LYNCH & CO ACCORDING TO THE COMPANY OF THE SHARES 73 MILLION WERE OFFERED BY THE COMPANY AND 654604 WERE OFFERED BY AN INSTITUTIONAL SHAREHOLDER FEDERAL HOME LOAN MORTGAGE CORP 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES G032 IS BACKED BY 30YEAR 75 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE MATURITY OF 356 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 505 MILLION OF REMIC SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1772 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 3055 MILLION OF STRIPPED MORTGAGEBACKED TRUST SECURITIES OFFERED BY LEHMAN BROTHERS INC THE TRUST GOLD STRIPS TRUST 165 IS BACKED BY THE AGENCY'S 30YEAR 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 855 AND WEIGHTED AVERAGE MATURITY OF 340 MONTHS OLYMPIC FINANCIAL LTD 260 MILLION MILLION OF AUTO ASSETBACKED CERTIFICATES PRICED LATE WEDNESDAY IN TWO PARTS BY UNDERWRITERS LED BY KIDDER PEABODY & CO ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES SOLD THROUGH OLYMPIC AUTO RECEIVABLES TRUST 1994A WERE RATED TRIPLEA BY MOODY'S AND S&P BOTH CLASSES ARE SUPPORTED BY A 100 INSURANCE WRAP PROVIDED BY FINANCIAL SECURITY ASSURANCE INC A 2236 MILLION CLASS OF NOTES WAS PRICED AS 565S AT 99914 TO YIELD 5765 A 58BASISPOINT SPREAD ABOVE THE TREASURY'S TWOYEAR NOTE THE NOTES HAVE A TWOYEAR AVERAGE LIFE THE REMAINING 364 MILLION CLASS OF CERTIFICATES WAS PRICED AS 57S AT 99875 TO YIELD 5837 A 65BASISPOINT SPREAD ABOVE THE TREASURY'S TWOYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF TWO YEARS ATLAS CAPITAL OFFSHORE LTD FRENCH PARENT 45 BILLION FRANCS OF 6375 EUROBONDS DUE DEC 31 1998 VIA CREDIT COMMERCIAL DE FRANCE SOCIETE GENERALE AND BANQUE PARIBAS REOFFERED AT 999 TO YIELD 641 A MARGIN OF 42 BASIS POINTS OVER COMPARABLE FRENCH TREASURYS GUARANTOR US BASED MUNICIPAL BOND INVESTORS ASSURANCE CORP FEES UNDISCLOSED BETA FINANCE CORP UK 75 MILLION OF 73 EUROBONDS DUE JULY 4 1995 AT ISSUE AND REOFFER PRICE 10373 VIA NATWEST CAPITAL MARKETS BONDS YIELD 34 FEES UNDISCLOSED MITSUBISHI CORP FINANCE PLC JAPANESE PARENT 10 BILLION YEN OF STEPUP COUPON EUROBONDS DUE JULY 18 1997 AT ISSUE PRICE 1001875 VIA SANWA INTERNATIONAL PLC COUPON 32 TO JULY 18 1996 WHEN BONDS CALLABLE AT PAR THEREAFTER COUPON 4 KEEPWELL AGREEMENT WITH MITSUBISHI CORP FEES 01875 CREDIT LOCAL DE FRANCE FRANCE 100 BILLION ITALIAN LIRE OF 75 EUROBONDS DUE JAN 26 1999 AT ISSUE PRICE 97445 VIA JP MORGAN BONDS TO TRADE INTERCHANGEABLY WITH 200 BILLION LIRE OF IDENTICAL BONDS OUTSTANDING OTHER TERMS UNCHANGED FEES 1875 9404010054 940401 POLITICS & POLICY ANALYSIS DONE FOR CLINTON 92 CAMPAIGN QUESTIONED WHITEWATER TAX DEDUCTIONS BY VIVECA NOVAK STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A DRAFT ANALYSIS OF WHITEWATER'S FINANCES PREPARED FOR THE CLINTON PRESIDENTIAL CAMPAIGN SUGGESTED THAT BILL AND HILLARY RODHAM CLINTON MAY HAVE TAKEN IMPROPER TAX DEDUCTIONS IN 1979 AND 1980 A REPORT RELEASED BY THE CAMPAIGN IN MARCH 1992 SHOWED LITTLE MORE THAN THAT THE CLINTONS LOST ABOUT 68900 ON WHITEWATER DEVELOPMENT CO AND THAT THEY HAD UNDERSTATED THEIR TAX LIABILITY FOR 1984 AND 1985 BY A TOTAL OF 5133 THE CLINTONS FILED AMENDED RETURNS FOR THOSE YEARS AND PAID THE BACK TAXES WITH INTEREST BUT THE DRAFT REPORT WHICH WAS NEVER MADE PUBLIC RAISED THE POSSIBILITY THAT THE CLINTONS OWED ADDITIONAL TAXES FOR TWO EARLIER YEARS THE REPORT WAS PREPARED FOR THE CLINTON CAMPAIGN BY THE DENVER ACCOUNTING FIRM PATTEN MCCARTHY & ASSOCIATES INC AT THE REQUEST OF JAMES LYONS AN ATTORNEY AND FRIEND OF THE CLINTONS IN 1980 THE ACCOUNTANTS WROTE IN THE DRAFT THE CLINTONS TOOK A DEDUCTION OF 9000 FOR A PAYMENT ON THE ORIGINAL WHITEWATER LOAN FROM CITIZENS BANK & TRUST FLIPPIN ARK WE QUESTION WHETHER THE AMOUNT CLAIMED WAS IN FACT PRINCIPAL AND NOT INTEREST THE DRAFT SAID IF THE PAYMENT WAS ON PRINCIPAL THE CLINTONS IMPROPERLY REDUCED THEIR TAXES BY 4816 THE DRAFT SAID WE DO NOT HAVE THE RECORDS TO FINALLY RESOLVE THAT QUESTION OF WHETHER IT WAS PRINCIPAL OR INTEREST BEING PAID DOWN SAID DAVID KENDALL THE CLINTONS' LAWYER IN AN INTERVIEW YESTERDAY THE CLINTONS BELIEVED IT WAS AN INTEREST PAYMENT THEY PAID IT AS SUCH AND WE HAVE NOTHING TO IMPUGN THAT MR LYONS SAID IN AN INTERVIEW YESTERDAY THAT YOU HAVE TO REMEMBER OVERALL WE DIDN'T HAVE ALL THE RECORDS WE DID THE BEST WE COULD WITH WHAT WE HAD BESIDES HE ADDED WHETHER THEY PUT IN NINE GRAND IN PRINCIPAL OR NINE GRAND IN INTEREST DIDN'T REALLY MAKE ANY DIFFERENCE FOR THE PURPOSE OF THE REPORT WHICH WAS TO DETERMINE WHETHER THE CLINTONS WERE AT RISK IN THE LAND DEAL WHETHER THEY WERE INVOLVED IN ITS DAYTODAY OPERATION AND WHAT HAPPENED TO WHATEVER MONEY THEY PUT INTO THE LAND VENTURE THE DRAFT REPORT FURTHER COMPLICATES THE WHITE HOUSE'S EFFORTS TO PUT TO REST QUESTIONS ABOUT THE FIRST COUPLE'S TAX LIABILITY PREVIOUSLY INDEPENDENT TAX ACCOUNTANTS HAVE CHALLENGED OTHER ASPECTS OF THE CLINTONS' INTEREST DEDUCTIONS DURING THE 1980S IN THE DRAFT ACCOUNTANTS ALSO WROTE THAT IN 1979 THE CLINTONS TOOK A 2900 DEDUCTION FOR WHAT APPEARED TO BE A CONTRIBUTION OF CAPITAL NOT AN INTEREST PAYMENT RESULTING IN A TAX REDUCTION OF 1856 ACCORDING TO MR LYONS THE DEDUCTION WAS ACTUALLY FOR 2400 WHICH IS REFLECTED ON THE CLINTONS' 1979 TAX RETURN AND HE AND OTHERS WORKING ON THE MATTER WERE ABLE TO ESTABLISH THAT IT WAS PROPERLY TAKEN FOR INTEREST PAID WHAT YOU HAVE IS A DRAFT DOCUMENT THAT WAS SENT TO ME BEFORE WE HAD COMPLETED OUR ANALYSIS MR LYONS SAID WE WORKED THROUGH THE ISSUES TO OUR SATISFACTION SO WE WERE ABLE TO CONCLUDE AS WE DID DRAFTS OF THE LYONS REPORT HAVE BEEN TURNED OVER TO WHITEWATER SPECIAL COUNSEL ROBERT FISKE MR CLINTON LAST WEEK SAID THE AMOUNT THE COUPLE HAS MAINTAINED THEY LOST ON WHITEWATER 68900 SHOULD BE LOWERED BY 22200 BECAUSE HE MISATTRIBUTED A PERSONAL LOAN TO WHITEWATER HE ALSO SAID HE WOULD PAY ANY BACK TAXES THAT HE MIGHT BE FOUND TO OWE WITH RESPECT TO WHITEWATER THE DRAFT OF THE LYONS REPORT WHICH RUNS TO MORE THAN 25 PAGES COMPARED WITH FIVE IN THE FINAL VERSION ALSO CONTAINS FAR MORE INFORMATION ABOUT WHITEWATER'S FINANCES DETAILING PAYMENTS MADE INTO AND OUT OF WHITEWATER'S ACCOUNT BY VARIOUS OTHER REALESTATE VENTURES RELATED TO JAMES MCDOUGAL THE CLINTONS' PARTNER IN WHITEWATER THE AMOUNTS GOING INTO WHITEWATER'S OFTENOVERDRAWN ACCOUNT WERE AT TIMES SIZABLE IN THE DRAFT LYONS REPORT THE TRANSFERS ARE DESCRIBED AS LOANS ALTHOUGH IT APPEARS THAT NO INTEREST WAS EVER PAID ON THE AMOUNTS IN MID1991 WHITEWATER STILL OWED THE OTHER COMPANIES ABOUT 80000 THE CLINTONS WERE AWARE OF AT LEAST SOME OF THIS ACTIVITY IN 1978 THE CLINTONS MADE A PAYMENT OF 10131 TO ONE OF THE COMPANIES GREAT SOUTHERN LAND CO WHICH THE WHITE HOUSE SAYS HAD MADE A WHITEWATER LOAN PAYMENT THE TRANSFERS FROM THE OTHER COMPANIES APPEAR TO BE RELATED TO A CHECKKITING SCHEME THAT WAS ALLEGED IN A CRIMINAL REFERRAL BY THE RESOLUTION TRUST CORP TO THE JUSTICE DEPARTMENT IN SEPTEMBER 1992 IN DOCUMENTS RELEASED LAST WEEK BY REP JAMES LEACH R IOWA MEMOS WRITTEN BY SENIOR RTC INVESTIGATOR JEAN LEWIS REFER TO A MASSIVE CHECK KITE INVOLVING ABOUT 15 MILLION SHUTTLED BETWEEN ENTITIES CONTROLLED BY MR MCDOUGAL AND HIS BUSINESS PARTNERS INCLUDING WHITEWATER THE CLINTONS WERE REPORTEDLY MENTIONED IN THAT REFERRAL THOUGH NOT AS TARGETS OF THE INVESTIGATION MORE THAN A YEAR LATER THE JUSTICE DEPARTMENT DECLINED THE CASE DUE TO INSUFFICIENT INFORMATION SEPARATELY REP LEACH EXPRESSED CONCERN THAT AN RTC REORGANIZATION INITIATIVE MAY CRAMP THE INDEPENDENCE OF REGIONAL OFFICES THAT HAVE PRESSED FOR WHITEWATER INVESTIGATIONS LAST FRIDAY RTC GENERAL COUNSEL ELLEN KULKA ISSUED A MEMORANDUM PLACING REGIONAL INVESTIGATORS UNDER THE DIRECTION OF THE RTC LEGAL DIVISION IN WASHINGTON THE DIRECTIVE WAS ISSUED THE DAY AFTER MR LEACH ASSERTED THAT RTC HEADQUARTERS HAD TRIED TO INTERFERE WITH AN INVESTIGATION BY THE AGENCY'S OFFICE IN KANSAS CITY MO REGARDING WHITEWATER AND MADISON GUARANTY SAVINGS & LOAN MS KULKA RTC DEPUTY CHIEF EXECUTIVE JOHN RYAN AND OTHERS CITED IN MEMOS RELEASED LAST WEEK BY MR LEACH HAVE DENIED ANY EFFORT TO INTERFERE WITH THE KANSAS CITY INVESTIGATIONS MS KULKA COULDN'T BE REACHED FOR COMMENT YESTERDAY KENNETH H BACON CONTRIBUTED TO THIS ARTICLE 9404010053 940401 THE AMERICAS HAITIAN DEATH CHAMBER COULD ONLY WORSEN WITH ARISTIDE BY RAYMOND A JOSEPH AFTER SEVERAL WEEKS ON THE OFFENSIVE SUPPORTERS OF EXILED HAITIAN PRESIDENT JEANBERTRAND ARISTIDE MAY HAVE PUSHED THE CLINTON ADMINISTRATION TOO FAR ON SUNDAY A STORY LEAKED TO THE NEW YORK TIMES BY ARISTIDE SUPPORTERS ATTEMPTED TO SHOW THAT CLINTON OFFICIALS WERE ABOUT TO TAKE A SHARP TURN TOWARD MR ARISTIDE'S POSITION STATE DEPARTMENT SPOKESMAN MICHAEL MCCURRY WAS FORCED TO PUBLICLY DENY THE REPORT THE NEXT DAY THIS CAME A WEEK AFTER MR ARISTIDE AT A CONGRESSIONAL BLACK CAUCUS CONFERENCE IN MIAMI DENOUNCED THE ADMINISTRATION'S REFUGEE POLICY AS RACIST AND CRIMINAL AND ON MARCH 23 A THREEQUARTERPAGE NEW YORK TIMES ADVERTISEMENT SPONSORED BY TRANSAFRICA CONDEMNED A POLICY THAT HAS EFFECTIVELY SEALED HAITIAN POLITICAL REFUGEES INTO THE DEATH CHAMBER OF THEIR OWN ISLAND THE NEW YORK TIMES AD REMINDED PRESIDENT CLINTON THAT 3000 HAITIANS HAVE BEEN MURDERED SINCE THE BLOODY COUP AGAINST MR ARISTIDE 30 MONTHS AGO BUT THE ADMINISTRATION MUST ALSO BE PAINFULLY AWARE OF THE MANY HAITIANS WHO DIE EACH MONTH AS A RESULT OF THE WORLDWIDE EMBARGO ON HAITI NOT TO MENTION THE INCREASE IN BOAT PEOPLE FATALITIES AND ILLEGAL IMMIGRANTS A STUDY RELEASED IN NOVEMBER BY A GROUP FROM THE HARVARD CENTER FOR POPULATION AND DEVELOPMENT STUDIES FOUND THAT THE EMBARGO WAS RESPONSIBLE FOR UP TO 1000 DEATHS A MONTH AMONG CHILDREN UNDER FIVE YEARS OF AGE THIS IS AN EMBARGO THAT MR ARISTIDE AND HIS SUPPORTERS WANT TO SEE TIGHTENED AND THIS LEADS TO THE KEY QUESTION ADMINISTRATION OFFICIALS MUST BE ASKING THEMSELVES ABOUT MR ARISTIDE'S PRESIDENCY BARRING AN ALL OUT MILITARY INVASION DOES THE INTERNATIONAL COMMUNITY INTEND TO CONTINUE THE SENSELESS DESTRUCTION OF HAITI IN ORDER TO SEE MR ARISTIDE REINSTATED AS PRESIDENT AND HIS VISION OF A NEW HAITI PUT IN PLACE AS FOR MR ARISTIDE HE CLEARLY BELIEVES THAT THERE IS NO SACRIFICE TOO GREAT FOR THE HAITIAN PEOPLE TO MAKE TO ENSURE THAT HE IS ALLOWED TO FULFILL HIS DESTINY AND HE IS IN NO MOOD TO COMPROMISE HIS CONFRONTATIONAL NATURE WAS EVIDENT IN HIS RESPONSE TO AN URGENT FEB 22 INVITATION BY UNITED NATIONS SECRETARYGENERAL BOUTROS BOUTROSGHALI TO DISCUSS A PLAN PRESENTED BY HAITIAN PARLIAMENTARIANS FOR HIS RETURN MR ARISTIDE SAID HE HAD PRIOR COMMITMENTS AND WOULD SEE MR BOUTROSGHALI ON MARCH 5 A SATURDAY WHEN HIS SUPPORTERS WOULD BE FREE TO COME OUT AND DEMONSTRATE FOR HIM ON FEB 24 HE WAS OFF TO DARTMOUTH COLLEGE IN NEW HAMPSHIRE AND ON FEB 26 HE FLEW TO PARIS WHEN HE FINALLY MET WITH TOP UN OFFICIALS SOME 2000 OF HIS SELFPROCLAIMED STREET DIPLOMATS WERE DEMONSTRATING NEAR THE UN HEADQUARTERS AGAINST THE PLAN MADE IN THE USA AND AGAINST THE SECRETARYGENERAL WHO WAS CALLED A LACKEY OF THE AMERICAN IMPERIALISTS FOR THE MOMENT MR ARISTIDE IS WILLING TO WAIT FOR EVEN MORE DESTRUCTION IN HAITI HIS HOPE IT SEEMS IS THAT THE EVENTUAL COLLAPSE OF THE COUNTRY WILL OFFER HIM THE CHANCE TO RETURN AS A REVOLUTIONARY HERO WHO WON'T BE HINDERED BY SUCH DEMOCRATIC INSTITUTIONS AS A PARLIAMENT OR A SUPREME COURT BUT EVEN IF THOSE TWO INSTITUTIONS ARE DESTROYED BEFORE HE ARRIVES HE WILL PROBABLY BE FORCED TO CONFRONT TWO OTHER POWERFUL INSTITUTIONS THE REMNANT FORCES OF THE ARMY AND THE ROMAN CATHOLIC CHURCH MR ARISTIDE'S PREEXILE CONFRONTATION WITH THE CHURCH WAS BASED ON HIS HELP IN BUILDING UP A NETWORK OF CHURCHES THAT EMBRACE THE CONCEPT OF LIBERATION THEOLOGY THE ADOPTION OF REVOLUTIONARY MARXISM WITHIN CHRISTIAN DOCTRINE ALTHOUGH THESE CHURCHES CALLED TI LEGLIZ IN HAITIAN CREOLE REPRESENTED A MINORITY ONLY ONE OUT OF HAITI'S 12 BISHOPS IS FROM THIS GROUP THEIR ADHERENTS NEVERTHELESS HAD A PROFOUND EFFECT ON THE CHURCH ONCE MR ARISTIDE WAS ELECTED EVEN BEFORE HE WAS INAUGURATED ON FEB 7 1991 PROARISTIDE MOBS BURNED A 250YEAROLD CATHEDRAL AS WELL AS THE HEADQUARTERS OF THE BISHOPS IN PORTAUPRINCE THE NUNCIO'S RESIDENCE WAS ALSO GUTTED AND HE WAS TAKEN PRISONER BY A CROWD THAT STRIPPED HIM TO HIS UNDERWEAR AND TAUNTED HIM AS HE WAS PARADED AROUND THE NUNCIO'S ASSISTANT A ZAIRIAN PRIEST RECEIVED A MACHETE BLOW THAT ALMOST COST HIM HIS LIFE MR ARISTIDE FAILED TO DENOUNCE THESE ACTS OF HOOLIGANISM IN FACT IN SEVERAL SPEECHES HE EXTOLLED THE VIRTUES OF PERE LEBRUN THE NECKLACING OF REAL AND PRESUMED OPPONENTS WITH A GASOLINESOAKED TIRE SUCH A SPEECH ON SEPT 27 1991 IS WIDELY CONSIDERED AS THE SPARK THAT LED TO THE COUP SINCE MR ARISTIDE'S EXILE THE ROMAN CATHOLIC HIERARCHY HAS REASSERTED ITSELF HAITI'S BISHOPS JUST RETURNED FROM A WORKING VISIT TO THE VATICAN AND THE INFLUENCE OF LIBERATION THEOLOGY PARTICULARLY OF ITS MOST RADICAL PROPONENTS IS CLEARLY ON THE DECLINE THE RETURN OF MR ARISTIDE WOULD LIKELY REIGNITE THE ENTIRE EPISODE OF CONFRONTATION WITHIN THE CHURCH AS FOR THE MILITARY IT'S CLEAR FROM HIS INFLEXIBLE BARGAINING POSITION THAT MR ARISTIDE HAS NOTHING LESS THAN THE COMPLETE DESTRUCTION OF THE MILITARY IN MIND OUT OF THE CHAOS THAT WOULD LIKELY RESULT MR ARISTIDE COULD PROBABLY SUBSTITUTE HIS OWN MODEL FOR SOCIAL CONTROL CALLED COMITES DE QUARTIERS OR NEIGHBORHOOD COMMITTEES BASED ROUGHLY ON THE CUBAN MODEL THEY ACTUALLY BEGAN OPERATING IN HAITI SOON AFTER BABY DOC DUVALIER WAS OVERTHROWN WHEN THEY WENT ON A RAMPAGE OF RETRIBUTIONAL KILLINGS HOWEVER LIKE THE CATHOLIC CHURCH THE ARMY HAS BEEN BUSY REASSERTING THE AUTHORITY IT LOST UNDER PRESIDENT ARISTIDE'S BRIEF REIGN IT HAS DEVELOPED A BRUTAL PARAMILITARY GROUP CALLED FRONT FOR HAITIAN PROGRESS AND ADVANCEMENT FRAPH IT WAS MEMBERS OF THIS GROUP THAT RECENTLY TURNED BACK A FRENCH RELIEF SHIP AND A US LANDING VESSEL LAST OCTOBER UNLIKE THE OLD TONTONSMACOUTE WHICH PAPA DOC DUVALIER CREATED AS A COUNTERBALANCE TO THE ARMY FRAPH IS ACTUALLY THE CIVILIAN ARM OF THE ARMY AND POLICE IT HAS SET UP GROUPS THROUGHOUT THE COUNTRY TO WIPE OUT THE ARISTIDE FORCES HIS RETURN WOULD SURELY RAISE THE CONFRONTATION LEVEL BETWEEN THESE TWO GROUPS TO UNPARALLELED DIMENSIONS THESE ARE THE UNDERLYING REALITIES THAT MUST GIVE THE CLINTON ADMINISTRATION PAUSE WHEN IT CONSIDERS RETURNING AN UNCOMPROMISING MR ARISTIDE BACK TO HAITI THE CHANCES OF HIS INTRODUCING DEMOCRACY INTO THIS VOLATILE MIX ARE VIRTUALLY NIL BUT IF THE CLINTON ADMINISTRATION IS PRESSURED INTO PURSUING THIS OPTION THE US MIGHT AS WELL PREPARE FOR THE THOUSANDS EVEN MILLIONS OF REFUGEES WHO COULD UNDOUBTEDLY BE CONSIDERED BOTH POLITICAL AND ECONOMIC REFUGEES AS THE WIDESPREAD REPRESSION WE SEE TODAY IN HAITI MULTIPLIES AND REQUIRES A NEW ROUND OF INTERNATIONAL SANCTIONS MR JOSEPH IS COPUBLISHER AND EDITOR OF THE BROOKLYN NYBASED WEEKLY HAITIOBSERVATEUR HE ONCE SERVED AS HAITI'S CHARGE D'AFFAIRES TO THE US 9404010052 940401 BUSINESS BRIEF PRESLEY COS DEBT OVERHAUL WOULD GIVE MAJORITY STAKE TO LENDERS PRESLEY COS NEWPORT BEACH CALIF SAID IT REACHED A RESTRUCTURING AGREEMENT WITH ITS LENDERS THAT WOULD GIVE THE LENDERS A 70 STAKE IN THE HOMEBUILDING COMPANY THE AGREEMENT WHICH REQUIRES SHAREHOLDER APPROVAL WAS DEVELOPED TO RESTRUCTURE THE COMPANY'S 340 MILLION REVOLVING LINE OF CREDIT IT CALLS FOR THE LENDERS TO CONVERT 95 MILLION OF DEBT INTO A NEW SERIES OF STOCK THAT WOULD BE CONVERTIBLE INTO COMMON STOCK WITHIN THREE YEARS THE LENDERS' STAKE WOULD BE REDUCED TO 65 IF THE COMPANY COMPLETES A 100 MILLION DEBT OFFERING BY DEC 31 THE LENDERS INCLUDING FOOTHILL CAPITAL CORP ALSO AGREED TO CONVERT THE REMAINING 245 MILLION OF DEBT INTO A NEW 95 MILLION REVOLVING CREDIT FACILITY AND A FIVEYEAR 250 MILLION TERM LOAN THE COMPANY'S BOARD WOULD BE INCREASED TO NINE FROM THE CURRENT SEVEN WITH THE LENDERS TAKING THREE SEATS 9404010051 940401 BUSINESS BRIEF KIMBERLYCLARK CORP CONSUMER PRODUCTS MAKER SELLS UNIT TO SBS ENTERPRISES KIMBERLYCLARK CORP CITING ITS INTENTION TO FOCUS ON CORE BUSINESSES SAID IT SOLD ITS SPENCO MEDICAL CORP UNIT TO A COMPANY LED BY A SPENCO EXECUTIVE TERMS WERE NOT DISCLOSED SPENCO WHICH MAKES PRODUCTS FOR THE FOOTCARE HEALTHCARE AND SPORTS MARKETS HAD SALES OF MORE THAN 30 MILLION IN 1993 AND EMPLOYS ABOUT 300 PEOPLE THE SALE TO SBS ENTERPRISES INC WILL HAVE NO SIGNIFICANT EFFECT ON EARNINGS THE DALLAS CONSUMER PRODUCTS MAKER SAID SPENCO FOUNDED IN 1967 AND ACQUIRED BY KIMBERLYCLARK IN 1984 USES POLYMER AND GEL TECHNOLOGIES TO PRODUCE PRODUCTS INCLUDING FOOTCARE INSOLES AND SUPPORTS CUSHIONS FOR BEDS AND WHEELCHAIRS AND BICYCLE SEATS SBS IS A WACO TEXASBASED HOLDING COMPANY RECENTLY FORMED BY STEVEN B SMITH WHO HAS BEEN CHAIRMAN OF THE BOARD CHIEF EXECUTIVE OFFICER AND PRESIDENT OF SPENCO SINCE 1988 9404010050 940401 BUSINESS BRIEF ITT CORP PURCHASE OF GM SUBSIDIARY IS COMPLETED FOR 375 MILLION ITT CORP SAID IT COMPLETED ITS ANNOUNCED ACQUISITION OF GENERAL MOTORS CORP'S MOTORS & ACTUATORS BUSINESS UNIT FOR ABOUT 375 MILLION UNDER TERMS OF THE AGREEMENT GENERAL MOTORS DETROIT WILL RETAIN A 20 INTEREST IN THE NEW BUSINESS ITT AUTOMOTIVE ELECTRICAL SYSTEMS INC A UNIT OF ITT AUTOMOTIVE THE MOTORS & ACTUATORS UNIT HAD 1993 SALES OF 835 MILLION AND EMPLOYS MORE THAN 5400 THE UNIT SUPPLIES MOTORS AND WIPER SYSTEMS IN NORTH AMERICA AND ALSO MAKES AIRMOVEMENT COMPONENTS AND ELECTROMECHANICAL DEVICES SEPARATELY NEW YORKBASED ITT SAID IT COMPLETED THE SALE OF ITS ITT POWERSYSTEMS UNIT TO CHARTER POWER SYSTEMS INC PLYMOUTH MASS TERMS WEREN'T DISCLOSED POWERSYSTEMS A UNIT OF ITT DEFENSE & ELECTRONICS MAKES AND SELLS CUSTOM POWER SUPPLIES FOR THE COMPUTER OFFICEEQUIPMENT AND TELECOMMUNICATIONS MARKETS 9404010049 940401 CREDIT RATINGS MOODY'S RAISES RATINGS ON 2 BILLION OF DEBT OF MCDONNELL DOUGLAS NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED THE LONGTERM DEBT RATINGS AND THE SHORTTERM RATINGS FOR COMMERCIAL PAPER OF MCDONNELL DOUGLAS CORP AND THOSE OF ITS MCDONNELL DOUGLAS FINANCE CORP SUBSIDIARY THE RATING ACTIONS WHICH AFFECT ABOUT 2 BILLION OF LONGTERM DEBT REFLECT MOODY'S VIEW THAT THE FINANCIAL RISKS OF SIGNIFICANT COSTOVERRUNS ON SEVERAL DEFENSE CONTRACTS HAVE DIMINISHED OTHER FACTORS INCLUDE A SHARP REDUCTION OF THE PARENT COMPANY'S DEBT FROM BOTH OPERATIONS AND THE SALE OF NONCORE ASSETS THE ST LOUISBASED PARENT'S SENIOR DEBT RATING WAS RAISED TO BAA3 FROM BA2 THE SHORTTERM DEBT RATING FOR COMMERCIAL PAPER WAS RAISED TO PRIME3 FROM NOT PRIME THE SUBSIDIARY'S SENIOR DEBT RATING WAS RAISED TO BAA3 FROM BA1 ITS SUBORDINATED DEBT TO BA2 FROM BA3 AND ITS SHELF REGISTRATION RATINGS TO P BAA3 AND P BA2 FROM P BA1 AND P BA3 RESPECTIVELY THE SHORTTERM DEBT RATING FOR COMMERCIAL PAPER WAS RAISED TO PRIME3 FROM NOT PRIME MOODY'S SAID ITS ACTIONS AFFECTING THE SUBSIDIARY WERE ALSO BASED ON ITS IMPROVED ASSET QUALITY FOLLOWING ITS DEPARTURE FROM NONCORE BUSINESSES AND A MODERATELY IMPROVED OUTLOOK FOR ITS COMMERCIAL AIRCRAFT FINANCING BUSINESS THE SUBSIDIARY HAS TAKEN SUBSTANTIAL ASSET WRITEDOWNS IN ITS NONCORE BUSINESS ASSETS AND ITS CURRENT EXPOSURE IS MORE MANAGEABLE MOODY'S SAID 9404010048 940401 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED MARCH 25 ACCOUNTED FOR 9 OR AN AVERAGE 246 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 72 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 386 INVOLVED STOCKINDEX ARBITRAGE UP FROM 385 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 546 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AND 394 FOR THEIR CUSTOMERS AN ADDITIONAL 6 WAS CUSTOMER FACILITATION IN WHICH FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES SUSQUEHANNA AND COOPER NEFF EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND SALOMON BROTHERS DID MOST OF THEIR TRADING FOR THEIR CUSTOMERS 9404010047 940401 CORRECTIONS & AMPLIFICATIONS RONNA ROMNEY A SENATE CANDIDATE IN MICHIGAN IS THE FORMER DAUGHTERINLAW OF EXGOV GEORGE ROMNEY WEDNESDAY'S CAPITAL JOURNAL COLUMN INCORRECTLY REFERRED TO HER AS HIS DAUGHTER THE MINERAL HANDLING GROUP OF BAKER PERFORMANCE CHEMICALS INC HAD REVENUE LAST YEAR OF LESS THAN 20 MILLION AN ARTICLE WEDNESDAY INCORRECTLY STATED THAT BAKER PERFORMANCE A SUBSIDIARY OF BAKER HUGHES INC HAD REVENUE OF LESS THAN 20 MILLION 9404010046 940401 WHAT'S NEWS BUSINESS AND FINANCE STOCKS RECOVERED AFTER A ROLLERCOASTER RIDE THAT INCLUDED A SHARP MORNING DROP PRICES ENDED MIXED WITH THE DOW JONES INDUSTRIALS UP 921 TO 363596 LONGTERM BOND PRICES ROSE IN A WILD DAY OF TRADING THE TREASURY'S 30YEAR ISSUE GAINED ALMOST 1/4 POINT TO YIELD 708 ANALYSTS EXPECT A BUMPY SECOND QUARTER ON MARKETS IN THE US AND ABROAD IN THE US ECONOMICALLY SENSITIVE GROUPS ARE EXPECTED TO FARE BETTER THAN INTERESTRATESENSITIVE SECTORS THE MUNICIPALBOND MARKET IS EXPERIENCING ITS WORST SELLOFF IN AT LEAST SEVEN YEARS MONEY MANAGERS ARE TRYING TO UNLOAD BONDS AS PRICES PLUNGE WOOLWORTH SUPPLIERS WERE TOLD BY SOME FACTORING COMPANIES AND CREDIT AGENCIES TO HOLD SHIPMENTS UNTIL THE RETAILER REVEALS MORE ABOUT ITS PROBE OF ALLEGED ACCOUNTING IRREGULARITIES FUND MANAGER MICHAEL STEINHARDT SAID HE HAS BEEN SELLING ACTIVELY AFTER INCURRING FIRSTQUARTER LOSSES OF 1 BILLION SELLING IN FALLING MARKETS STEINHARDT DEEPENED HIS LOSSES AND MAY HAVE ADDED TO MARKET WEAKNESS THE ECONOMY GREW AT A 7 ANNUAL RATE IN THE FOURTH QUARTER SLOWER THAN THE PREVIOUSLY ESTIMATED 75 THE NEW GDP FIGURE STILL MARKS THE HIGHEST QUARTERLY JUMP IN 10 YEARS UNDERWRITING BUSINESS SLOWED 3 IN THE FIRST QUARTER INDICATING THAT BROKERAGE FIRMS' 1993 RECORD EARNINGS COULD FAST BECOME A MEMORY GRUMMAN BEGAN CONSIDERING BIDS FOR THE COMPANY AS IT MOVED TOWARD A MONDAYMORNING ANNOUNCEMENT OF ITS CHOICE BETWEEN RIVAL SUITORS MARTIN MARIETTA AND NORTHROP BUT ALL THREE REFUSED TO DISCUSS THE AUCTION THE US MOVED TO TIGHTEN PRESSURE ON JAPAN BY IDENTIFYING JAPANESE TRADING BARRIERS THAT WASHINGTON COULD TARGET FOR RETALIATION RATES ON 30YEAR CONVENTIONAL MORTGAGES HAVE SURGED ABOVE 8 FOR THE FIRST TIME IN MORE THAN A YEAR SYMANTEC IS NEARING A DEAL TO BUY CENTRAL POINT IN ANOTHER SIGN OF CONSOLIDATION IN THE SOFTWARE INDUSTRY BRITAIN'S PEARSON AGREED TO BUY SOFTWARE TOOLWORKS FOR ABOUT 462 MILLION IN WHAT SOME VIEW AS A COSTLY EXPANSION INTO MULTIMEDIA SOFTWARE LABOR OFFICIALS INTENSIFIED A CRACKDOWN ON GROUPS THAT OFFER LOWCOST HEALTH INSURANCE FOR WORKERS OF SMALL FIRMS BUT OFTEN RENEGE ON CLAIMS LEHMAN BROTHERS PLANS TO TAKE A PRETAX CHARGE OF 30 MILLION FOR SEVERANCE PAYMENTS STEMMING FROM AN AGGRESSIVE COSTCUTTING DRIVE GENERAL MOTORS SAID IT PLANS TO BUY BACK OR EXCHANGE 2500 NATURALGAS POWERED PICKUP TRUCKS BECAUSE OF POTENTIALLY DEFECTIVE FUEL TANKS JAPANESE STOCKS ENDED SHARPLY LOWER WITH INVESTORS NERVOUS OVER THE STRENGTHENING YEN AND SPOOKED BY THIS WEEK'S BIG STOCK DECLINES IN THE US THE NIKKEI 225STOCK INDEX CLOSED AT 1911192 DOWN 44799 POINTS OR 23 CHINA OPENS A FOREIGN CURRENCY TRADING CENTER TODAY AMID CONFUSION AND CRITICISM FROM FOREIGN BANKERS BONDS LEHMAN BROTHERS TREASURY INDEX 519030 UP 311 COMMODITIES OIL 1479 A BARREL UP 41 CENTS DOW JONES FUTURES INDEX 14210 UP 010 SPOT INDEX 13240 UP 061 DOLLAR 10260 YEN OFF 025 16735 MARKS OFF 00015 9404010044 940401 GM'S SATURN DIVISION EXPECTS PROFIT IN 1994 DESPITE CUT IN OUTPUT NEW YORK GENERAL MOTORS CORP'S SATURN SUBSIDIARY SAID IT FULLY EXPECTS TO BE PROFITABLE THIS YEAR EVEN THOUGH IT HAS CUT ITS PRODUCTION PACE BY AS MUCH AS 29 BECAUSE OF SLOWER SALES DON HUDLER SATURN'S VICE PRESIDENT OF SALES SERVICE AND MARKETING SAID WE MADE AN OPERATING PROFIT LAST YEAR AND WE FULLY EXPECT TO MAKE AN OPERATING PROFIT THIS YEAR EVEN THOUGH THE PLANT IS RUNNING AT ABOUT 85 OF CAPACITY SATURN RECENTLY CUT ITS OUTPUT TO ABOUT 800 VEHICLES A DAY FROM ABOUT 1130 VEHICLES A DAY BECAUSE OF SLOWER SALES AT THAT PACE SATURN WOULD BUILD ABOUT 270000 TO 280000 VEHICLES A YEAR COMPARED WITH FULL CAPACITY OF ABOUT 320000 ANNUALLY SATURN'S SALES IMPROVED IN MARCH AVERAGING 1000 VEHICLES SOLD A DAY FOR THE LAST 10 DAYS MR HUDLER SAID THAT DECREASED SATURN'S BACKLOG OF UNSOLD CARS TO AN ESTIMATED 72DAY SUPPLY AT THE END OF MARCH COMPARED WITH A 91DAY SUPPLY ON FEB 28 HE ADDED A 60TO65DAY SUPPLY IS CONSIDERED IDEAL MR HUDLER PROJECTS INVENTORY LEVELS FOR SATURN TO DROP IN APRIL TO A 60DAY SUPPLY SATURN GOT SOME HELP YESTERDAY FROM JAPANESE RIVAL MAZDA MOTOR CORP WHICH SAID IT WILL BOOST PRICES FOR THE THIRD TIME SINCE SEPTEMBER ON ALL ITS 1994 MODELS THE LATEST ROUND OF PRICE INCREASES AVERAGES ABOUT 21 OR 333 A VEHICLE MAZDA SAID IT ALSO WILL RAISE DESTINATION CHARGES ABOUT 76 OR 30 A VEHICLE AND RAISE THE PRICES OF OPTIONS SUCH AS AIR CONDITIONING AND AUTOMATIC TRANSMISSION BY ABOUT 50 MEANWHILE THE 10 AUTO MAKERS THAT BUILD CARS AND TRUCKS IN THE US SAID DOMESTIC PRODUCTION WILL DECLINE 177 THIS WEEK TO 200684 VEHICLES IN A SHORTENED WORK WEEK DUE TO THE TRADITIONAL EASTER HOLIDAY FROM THE SAME PERIOD A YEARAGO 9404010043 940401 INTERNATIONAL BRIEF REDLAND PLC BRITISH FIRM POSTS 26 RISE IN PRETAX PROFIT FOR 1993 UK CONSTRUCTION MATERIALS GROUP REDLAND PLC SAID 1993 PRETAX PROFIT ROSE 26 WITH NORTH AMERICAN PROFIT DOUBLING AND STRONG TRADING CONTINUING IN GERMANY PRETAX PROFIT ROSE TO 2789 MILLION 4128 MILLION FROM 2215 MILLION A YEAR EARLIER SALES GAINED 18 TO 247 BILLION FROM 209 BILLION REDLAND SAID OPERATING PROFIT MARGINS ROSE TO 123 FROM 112 FOLLOWING THE REDUCTION OF MORE THAN 20 MILLION IN FIXED COSTS OPERATING PROFIT IN BRITAIN FELL TO 228 MILLION FROM 248 MILLION BUT OVERSEAS PROFIT ROSE TO 2813 MILLION FROM 2094 MILLION BENEFITING FROM ANOTHER EXCELLENT PERFORMANCE IN GERMANY A SHARP RECOVERY IN PROFITABILITY IN THE US AND BETTER RESULTS IN THE NETHERLANDS AUSTRALIA AND THE FAR EAST THE COMPANY SAID REDLAND SAID THE KEY ACHIEVEMENT IN 1993 WAS THE IMPROVEMENT IN THE GROUP'S CASH FLOW WHICH ULTIMATELY ALLOWED THE COMPANY TO REDUCE ITS DEBT TO 384 MILLION FROM 661 MILLION 9404010042 940401 BUSINESS BRIEF LANDMARK GRAPHICS CORP EXPLORATION SERVICES CONCERN RECORDS 111 MILLION CHARGE LANDMARK GRAPHICS CORP SAID IT WILL RECORD A NONCASH NONRECURRING PRETAX CHARGE OF 111 MILLION FOR THE THIRD QUARTER ENDING MARCH 31 RELATED TO ITS ACQUISITION OF ADVANCE GEOPHYSICAL CORP LANDMARK GRAPHICS A HOUSTON OIL EXPLORATION SERVICES COMPANY HAD ASKED THE SECURITIES AND EXCHANGE COMMISSION TO RULE ON THE CHARGE WHICH RESULTS FROM ADVANCE GEOPHYSICAL'S STOCK COMPENSATION PLANS AT THE TIME OF THE ACQUISITION LANDMARK SAID IT WOULD REPORT A 2 MILLION THIRDQUARTER CHARGE FOR COSTS OF ACQUIRING ADVANCE GEOPHYSICAL FOR THE YEAR EARLIER QUARTER LANDMARK HAD NET INCOME OF 19 MILLION OR 18 CENTS A SHARE ON REVENUE OF 236 MILLION A COMPANY SPOKESMAN SAID ANALYSTS EXPECTED EARNINGS OF 25 CENTS A SHARE TO 27 CENTS A SHARE ON REVENUE OF 30 MILLION FOR THIS QUARTER 9404010041 940401 INTERNATIONAL BRIEF METALLGESELLSCHAFT HOLDERS APPROVE MEASURES FOR FINANCIAL RESCUE PLAN METALLGESELLSCHAFT AG'S PLANS TO ISSUE 56 MILLION NEW SHARES THIS MONTH RECEIVED A BOOST AS SHAREHOLDERS APPROVED CAPITAL MEASURES FOR THE GERMAN METALS MINING AND ENGINEERING GROUP'S FINANCIAL RESCUE PLAN THE CAPITAL APPROVAL PROCESS WHICH WAS SUPPORTED BY SUCH MAJOR SHAREHOLDERS AS DEUTSCHE BANK AG AND DRESDNER BANK AG WAS WIDELY EXPECTED BUT THE VOTING CAME AFTER A STORMY 11HOUR SHAREHOLDERS MEETING STRETCHING INTO THE LATE HOURS WEDNESDAY THE SUPERVISORY BOARD WON SHAREHOLDER APPROVAL FOR A SECOND TRANCHE OF A 111 MILLION MARK 662 MILLION CAPITAL INCREASE FOR THE ISSUANCE OF PROFIT PARTICIPATION CERTIFICATES THE NONVOTING EQUITY IS RESERVED FOR METALLGESELLSCHAFT'S CREDITOR BANKS WHICH AGREED IN JANUARY TO CONVERT 13 BILLION MARKS OF THE COMPANY'S BANK DEBT INTO SUBORDINATED EQUITY WHICH CAN LATER BE CONVERTED INTO COMMON STOCK AS A NEXT STEP METALLGESELLSCHAFT'S PLANNED RIGHTS ISSUE WOULD RAISE 14 BILLION MARKS UNDER A CAPITAL INCREASE APPROVED FEB 24 9404010040 940401 BUSINESS BRIEF STRIDE RITE CORP FIRSTQUARTER NET FELL 63 LATE SHIPMENT OF KEDS CITED STRIDE RITE CORP REPORTED NET INCOME FOR THE FIRST QUARTER ENDED MARCH 4 FELL 63 TO 48 MILLION OR 10 CENTS A SHARE ON A 13 SALES DECLINE TO 1221 MILLION THE EARNINGS DECLINE WAS WIDER THAN THE DECLINE OF MORE THAN 15 THAT STRIDE RITE OF CAMBRIDGE MASS INDICATED IN A FEBRUARY ANNOUNCEMENT IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING STRIDE RITE STOCK FELL 875 CENTS TO 1475 IN THE YEARAGO FIRST QUARTER STRIDE RITE REPORTED NET OF 131 MILLION OR 26 CENTS A SHARE AFTER A 2 MILLION CHARGE FOR A CHANGE IN ACCOUNTING PRINCIPLE ON SALES OF 1408 MILLION STRIDE RITE CITED A 22 DECLINE IN SALES OF ITS MAINSTAY KEDS ATHLETIC SHOE LINE CAUSED IN LARGE PART BY PROBLEMS WITH DELIVERIES FROM A NEW DISTRIBUTION CENTER IN KENTUCKY STRIDE RITE SAID ITS ORDER BACKLOG AT THE END OF THE QUARTER WAS 39 ABOVE THE YEAR EARLIER BACKLOG STRIDE RITE SAID SALES OF ITS CHILDREN'S SHOES ROSE 10 IN THE QUARTER AND SPERRY TOPSIDER DIVISION SALES WERE UP 3 9404010039 940401 BUSINESS BRIEF AMERICA'S FAVORITE CHICKEN CO FTC CHARGES ABOUT DESIGN ON FOOD CONTAINERS SETTLED AMERICA'S FAVORITE CHICKEN CO SETTLED FEDERAL TRADE COMMISSION CHARGES THAT THE COMPANY MADE MISLEADING CLAIMS ABOUT ITS FOOD CONTAINERS IN ITS COMPLAINT THE FTC SAID THE COMPANY'S USE ON ITS FOOD PACKAGES OF THREECHASING ARROWS A WIDELY RECOGNIZED SYMBOL FOR RECYCLING WAS MISLEADING EVEN THOUGH THE PAPER CONTAINERS ARE CAPABLE OF BEING RECYCLED THE FTC SAID THE VAST MAJORITY OF CONSUMERS CAN'T RECYCLE THE PACKAGING BECAUSE VIRTUALLY NO COLLECTION FACILITIES ACCEPT FOODCONTAMINATED PAPER AMERICA'S FAVORITE CHICKEN IS THE PARENT OF THE CHURCH'S AND POPEYES FASTFOOD CHAINS THE PROPOSED CONSENT AGREEMENT WOULD PROHIBIT THE COMPANY FROM MISREPRESENTING THE EXTENT TO WHICH ANY OF ITS PRODUCTS OR PACKAGES ARE RECYCLABLE A CONSENT AGREEMENT DOESN'T CONSTITUTE ADMISSION OF A LAW VIOLATION OFFICIALS OF THE MINNESOTA COMPANY WITH PRINCIPAL OFFICES IN ATLANTA COULDN'T BE REACHED FOR COMMENT 9404010038 940401 BUSINESS BRIEF GOLDMAN SACHS GROUP LP J ARON DIVISION WILL PAY TO SETTLE FEDERAL CLAIMS J ARON & CO A DIVISION OF GOLDMAN SACHS GROUP LP WILL PAY MORE THAN 7 MILLION TO SETTLE FEDERAL CLAIMS THAT IT SUBMITTED FALSE INFORMATION TO AN AGRICULTURAL SUBSIDY PROGRAM THE GOVERNMENT ALLEGED THAT A FORMER ARON EMPLOYEE MISSTATED WHEAT CONTRACT PRICES IN 1990 AND IN 1991 TO RECEIVE GREATER SUBSIDIES FROM THE COMMODITY CREDIT CORP THE CCC ADMINISTERS THE US DEPARTMENT OF AGRICULTURE'S EXPORT ENHANCEMENT PROGRAM WHICH SUBSIDIZES US EXPORTERS COMPETING WITH FOREIGN EXPORTERS UNDER THE AGREEMENT 563 MILLION WILL COVER REPAYMENT OF THE SUBSIDIES WHILE 14 MILLION COVERS INTEREST AND GOVERNMENT INVESTIGATIVE EXPENSES IN AGREEING TO THE SETTLEMENT THE COMMODITIES BROKER DID NOT ADMIT OR DENY THE ALLEGATIONS IT HAS COOPERATED WITH FEDERAL PROSECUTORS IN THE INVESTIGATION EDWARD NOVOTNY A SPOKESMAN FOR J ARON SAID THAT THE EXPORT PROGRAM CONSTITUTED A VERY SMALL PORTION OF THE COMPANY'S BUSINESS BUT DECLINED FURTHER COMMENT BARUCH WEISS AN ASSISTANT US ATTORNEY IN NEW YORK SAID THAT AN INVESTIGATION IS CONTINUING AND THAT THE CIVIL SETTLEMENT DOES NOT PRECLUDE TAX OR CRIMINAL PROSECUTIONS 9404010037 940401 WHAT'S NEWS WORLDWIDE DE KLERK DECLARED A STATE OF EMERGENCY IN SOUTH AFRICA'S ZULU HEARTLAND THE EMERGENCY REGULATIONS INTENDED TO ENSURE FREE AND FAIR VOTING IN THE COUNTRY'S FIRST ALLRACE ELECTIONS THIS MONTH COVER NATAL AND THE APARTHEIDERA ZULU HOMELAND OF KWAZULU MANDELA PRAISED THE ACTION SAYING A SURGE IN VIOLENCE HAD TO BE STOPPED BUT BUTHELEZI HEAD OF THE ZULUDOMINATED INKATHA AND CHIEF KWAZULU MINISTER SAID ANY MOVEMENT OF TROOPS INTO THE AREA WOULD BE VIEWED AS AN INVASION WITNESSES SAID ARMY VEHICLES CROSSED INTO NATAL LAST NIGHT DE KLERK SAID HE STILL HOPED A MEETING INCLUDING HIMSELF MANDELA BUTHELEZI AND THE ZULU KING COULD DEFUSE THE CRISIS BUT BUTHELEZI THREATENED TO BACK OUT ISRAEL AND THE PLO RESUMED NEGOTIATIONS ON PALESTINIAN SELFRULE AND A PLO OFFICIAL SAID THE TWO SIDES WERE CLOSE TO AN ACCORD ON ISRAELI WITHDRAWAL FROM JERICHO AND THE GAZA STRIP THIS MONTH AND DEPLOYMENT OF A FORCE OF 8500 PALESTINIAN POLICE LAST NIGHT CLINTON ORDERED THE DEFENSE DEPARTMENT TO RELEASE EQUIPMENT FOR THE POLICE FORCE THE SECURITY COUNCIL APPROVED A STATEMENT URGING NORTH KOREA TO ALLOW INTERNATIONAL INSPECTIONS OF SUSPECTED NUCLEAR ARMS SITES THE US EARLIER DROPPED EFFORTS TO PASS A FORMAL RESOLUTION WHICH WAS OPPOSED BY CHINA THE COMPROMISE STATEMENT ALSO DOES NOT CONTAIN THE STRONG SANCTIONS THREAT THAT HAD BEEN SOUGHT BY WASHINGTON MUSLIMSERB FIGHTING FLARED IN PARTS OF BOSNIA WITH THE HEAVIEST OCCURRING AROUND GORAZDE SOUTHEAST OF SARAJEVO MEANWHILE THE UN YIELDED TO US PRESSURE AND CUT TO 3500 THE NUMBER OF ADDITIONAL PEACEKEEPING TROOPS TO BE SENT TO BOSNIA THE US SAID IT WASN'T SURE CONGRESS WOULD APPROVE FUNDS FOR THE 8500 TROOPS ORIGINALLY SOUGHT AN INTERNATIONAL JUDICIAL PANEL CRITICIZED PERU'S USE OF MILITARY COURTS TO TRY CIVILIANS ON TREASON CHARGES THE MISSION OF THE PANEL WHICH WAS SET UP BY THE US STATE DEPARTMENT WAS TO JUDGE THE EXTENT TO WHICH DEFENDANTS WERE ACCORDED DUEPROCESS RIGHTS UNDER LAWS PROMULGATED IN 1992 WHEN PRESIDENT FUJIMORI SEIZED BROAD POWERS GUNMEN IN SOMALIA KILLED A GUARD IN THE ABDUCTION OF AN AMERICAN RED CROSS WORKER NEAR UN HEADQUARTERS IN MOGADISHU NO RANSOM DEMANDS WERE ISSUED IMMEDIATELY FOR THE KIDNAPPED WORKER A SANITATION ENGINEER IN SOMALIA TO FIGHT A CHOLERA OUTBREAK THE AGENCY SAID IT WAS THE FIRST SUCH INCIDENT INVOLVING A WORKER ASSIGNED OVERSEAS AN EXPLOSION AT A FRENCH REACTOR KILLED ONE WORKER AND INJURED FOUR OTHERS WHO WERE CLEANING A TANK OF SLIGHTLY RADIOACTIVE SODIUM THE BLAST CAUSED THE TANK TO COLLAPSE AT THE RESEARCH REACTOR A TYPE KNOWN AS A FAST BREEDER WHICH HAS BEEN CLOSED SINCE 1982 THE BLAST'S CAUSE WASN'T KNOWN THE WORKERS WERE FOUND TO BE UNCONTAMINATED A PRESIDENTIAL COMMISSION PRESENTED CLINTON WITH SOME UNPALATABLE OPTIONS TO REFORM WELFARE AMONG THEM ARE TIGHTENING ELIGIBILITY CUTTING AID TO PEOPLE OTHER THAN PARENTS WHO TAKE CARE OF CHILDREN AND RAISING TAXES THE PRESIDENT MUST DECIDE HOW FAR HE'LL GO TO KEEP PROMISES TO OVERHAUL THE SYSTEM A NAVY PANEL RECOMMENDED THE EXPULSION OF 29 MIDSHIPMEN FROM THE US NAVAL ACADEMY AND DISCIPLINARY ACTIONS AGAINST ANOTHER 42 IN THE LARGEST CHEATING SCANDAL IN THE ACADEMY'S HISTORY THE HONOR REVIEW BOARD ALSO CLEARED 35 MIDSHIPMEN OF CHEATING ON AN ENGINEERING EXAM THE NAVY SECRETARY WILL WEIGH THE RECOMMENDATIONS A YOUTH MARCH IN PARIS TURNED VIOLENT AS VANDALS USING THE COVER OF A RALLY TO CELEBRATE THE GOVERNMENT'S WITHDRAWAL OF A PLAN TO CUT YOUTH WAGES SMASHED CARS AND SHOPS AND ATTACKED POLICE AND JOURNALISTS MORE THAN 300 WERE ARRESTED IN THE RAMPAGE AND 48 POLICE OFFICERS WERE HURT CLASHES ON A SMALLER SCALE ALSO OCCURRED IN NANTES GENE RESEARCHERS REPORTED SIGNS OF SUCCESS FOR A NEW THERAPY IN WHICH HUMAN GENES WERE TRANSPLANTED TO THE LIVER OF A WOMAN WITH A DISORDER MARKED BY VERY HIGH CHOLESTEROL READINGS RESEARCHERS SAID THE WOMAN'S CHOLESTEROL LEVELS FELL 20 AFTER THE 1992 TRANSPLANT AND FOUR OTHER PATIENTS HAVE NOW BEEN TREATED CHERNOBYL'S CEMENT TOMB IS DETERIORATING SERIOUSLY THE INTERNATIONAL ATOMIC ENERGY AGENCY WARNED THE AGENCY ALSO FOUND FLAWS AT TWO REACTORS STILL OPERATING AT THE UKRAINE FACILITY SITE OF A 1986 BLAST AND FIRE THE WORLD'S WORST CIVILIAN NUCLEAR ACCIDENT 9404010036 940401 BUSINESS BRIEF F&C INTERNATIONAL INC GERMAN INVESTOR TO ACQUIRE BUSINESS FOR 215 MILLION F&C INTERNATIONAL INC SAID A US BANKRUPTCY JUDGE APPROVED ITS CHAPTER 11 REORGANIZATION PLAN IN WHICH IT PLANS TO SELL ITS BUSINESS TO GERMAN INVESTOR HANSPETER WILD MR WILD WILL BUY THE COMPANY'S ASSETS FOR 215 MILLION CASH PLUS 35 MILLION IN NOTES IN ADDITION HE WILL GIVE PREVIOUS SHAREHOLDERS 20 OF THE STOCK OF THE NEW COMPANY HE IS FORMING WHICH WILL RETAIN THE 160 F&C EMPLOYEES AND BE KNOWN AS F&C WILD FLAVORS INC PREVIOUS SHAREHOLDERS WILL SHARE IN THE PROCEEDS EXPECTED TO AMOUNT TO ABOUT 75 CENTS TO 1 A SHARE SOME SHAREHOLDERS PAID AS MUCH AS 22 FOR THEIR SHARES THE CINCINNATIBASED FRAGRANCE AND FLAVOR MAKER FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN APRIL 1993 AFTER ALLEGING THAT ITS FOUNDER AND FORMER CHAIRMAN SCHEMED TO INFLATE PROFITS MR WILD IS A MANAGING PARTNER OF THE WILD GROUP A SUPPLIER OF INGREDIENTS TO THE BEVERAGE AND DAIRY INDUSTRIES 9404010035 940401 BUSINESS BRIEF RETIX SOFTWARE COMPANY SETTLES LAWSUIT BY SHAREHOLDERS RETIX SAID IT AGREED TO SETTLE A SHAREHOLDER CLASSACTION LAWSUIT THAT CHARGED THE COMPANY WITH MAKING STATEMENTS THAT FAILED TO DISCLOSE PROBLEMS WITH NEW PRODUCTS THE COMPUTERSOFTWARE MAKER BASED IN SANTA MONICA CALIF DIDN'T DISCLOSE THE AMOUNT OF THE SETTLEMENT THE COMPANY SAID IT WILL PAY 35 MILLION WITH ITS INSURANCE COMPANY MAKING AN ADDITIONAL PAYMENT THE COMPANY DISPUTED SHAREHOLDER CLAIMS BUT SAID IT SETTLED TO AVOID A PROTRACTED PERIOD OF COSTLY LITIGATION AND MANAGEMENT DISTRACTION THE SUIT WAS FILED IN MARCH 1993 IN FEDERAL COURT IN LOS ANGELES THE SETTLEMENT IS SUBJECT TO COURT APPROVAL RETIX SAID THE SETTLEMENT WILL RESULT IN A 36 MILLION CHARGE AND A REVISED LOSS FOR THE FISCAL YEAR ENDED JAN 1 1994 THE COMPANY IN FEBRUARY REPORTED A NET LOSS FOR THE YEAR OF 25 MILLION OR 15 CENTS A SHARE AFTER THE REVISION THE NET LOSS WILL INCREASE TO 61 MILLION OR 37 CENTS A SHARE THE COMPANY SAID 9404010034 940401 BUSINESS BRIEF MOBIL CORP US OIL FIRM BUYS INTEREST IN SECOND BLOCK OFF VIETNAM MOBIL CORP HAS ACQUIRED A 25 INTEREST IN AN OFFSHORE BLOCK 180 MILES SOUTHEAST OF VIETNAM'S MEKONG RIVER DELTA TERMS WEREN'T DISCLOSED THE FAIRFAX VABASED OIL COMPANY SAID IT ACQUIRED THE INTEREST IN BLOCK 053 FROM AOC ENERGY DEVELOPMENT CO A UNIT OF ARABIAN OIL CO OF TOKYO WHICH STILL OWNS 30 INTEREST IN THE BLOCK MOBIL SAID TEIKOKU OIL CO OF JAPAN OWNS 24 INTEREST IN THE BLOCK BRITISH PETROLEUM OF ENGLAND OWNS 14 INTEREST AND THE NORWEGIAN NATIONAL OIL COMPANY OWNS 7 INTEREST THE 965SQUAREMILE BLOCK IS MOBIL'S SECOND OFFSHORE VIETNAM ACQUISITION IT IS ADJACENT TO THE BLUE DRAGON BLOCK IN WHICH MOBIL AND OTHERS WERE AWARDED AN INTEREST LAST DECEMBER A SPOKESMAN FOR MOBIL SAID DRILLING ON BLOCK 053 SHOULD BEGIN THIS YEAR 9404010033 940401 BUSINESS BRIEF AMERICAN GREETINGS CORP FIRM POSTS 16 PROFIT RISE FOR FISCAL FOURTH QUARTER AMERICAN GREETINGS CORP REPORTED A 16 RISE IN PROFIT FOR THE FOURTH QUARTER AND SAID IT EXPECTS ITS STEADY REVENUE GROWTH AND DOUBLEDIGIT EARNINGS GROWTH WILL CONTINUE IN THE CURRENT FISCAL YEAR FOR THE FISCAL QUARTER ENDED FEB 28 THE CLEVELAND GREETINGCARD MAKER SAID NET INCOME ROSE TO 395 MILLION OR 53 CENTS A SHARE FROM 34 MILLION OR 47 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 6 TO 4745 MILLION FROM 4485 MILLION IN ADDITION TO A STRONG CORE BUSINESS THE COMPANY SAID AT ITS ANNUAL MEETING THAT IT EXPECTS IMPROVED PERFORMANCE BY ITS FOREIGN OPERATIONS AND ITS CONSUMERPRODUCTS COMPANIES THE COMPANY ALSO SAID IT SHOULD BENEFIT FROM CONTINUED GROWTH IN ITS MASS RETAIL MARKET WHICH IT SAID REPRESENTS THE GREATEST GROWTH PROSPECTS FOR THE YEAR THE COMPANY REPORTED NET INCOME OF 1137 MILLION OR 154 A SHARE INCLUDING AN ACCOUNTING CHANGE OF 172 MILLION OR 23 CENTS A SHARE THAT COMPARES WITH NET INCOME OF 1123 MILLION OR 155 A SHARE A YEAR EARLIER THE AVERAGE NUMBER OF SHARES INCREASED BY 19 IN THE PERIOD 9404010032 940401 SPORTS A SOCCER GOAL CAN TURN INTO HEALTH HAZARD BY TOM KNUDSON STAFF REPORTER OF THE WALL STREET JOURNAL SOCCER FIELDS HAVE BECOME SITES FOR A SURPRISING KIND OF ACCIDENTAL DEATH PORTABLE SOCCERGOAL FRAMES ARE TIPPING OVER AND CRUSHING PEOPLE IN A NEW REPORT THE US CENTERS FOR DISEASE CONTROL EXAMINES CASES IN WHICH FALLING SOCCER GOALS KILLED 18 PEOPLE AND INJURED NINE OTHERS FROM 1979 TO 1993 THE AVERAGE AGE OF THOSE WHO DIED WAS 9 1/2 ELEVEN OF THE DEATHS OCCURRED BETWEEN 1989 AND 1993 INCLUDING TWO LAST YEAR SOCCER GOALS WHICH ARE USUALLY MADE OF METAL AND CAN WEIGH UP TO 800 POUNDS DON'T LOOK DANGEROUS BUT THE CDC REPORT SAYS THEY CAN BE DEADLY IF THEY AREN'T ANCHORED TO THE GROUND OR IF THEY ARE USED AS JUNGLE GYMS OR CHINUP BARS ANOTHER CONCERN THE USE OF IMPROPERLY CONSTRUCTED AND THUS UNSTABLE HOMEMADE GOALS BY FINANCIALLY PRESSED TEAMS PROFESSIONALLY MADE SOCCER GOALS COST AROUND 1800 THE PRINCIPAL DANGER IS PEOPLE DON'T KNOW ABOUT THIS DANGER SAYS ANDREW CARUSO PRESIDENT OF KWIK GOAL LTD A LEADING SOCCERGOAL MANUFACTURER IN QUAKERTOWN PA IF WE GO AROUND SAYING SOCCER IS PERFECTLY SAFE THEN IT'S GOING TO BE DANGEROUS SOCCER DOES SEEM TO BE LESS HAZARDOUS THAN FOOTBALL PRECISE FIGURES AREN'T AVAILABLE BUT MR CARUSO WHO TRACKS SUCH MATTERS SAYS FIVE PEOPLE TYPICALLY DIE EVERY YEAR IN SOCCERRELATED DEATHS TWO FROM GAMERELATED INJURIES AND THREE FROM FALLING GOALS THAT COMPARES WITH 12 FOOTBALL DEATHS IN 1992 AND SEVEN IN 1991 ACCORDING TO A SURVEY BY THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION COVERING ALL CURRICULUM LEVELS SOCCER GOALS ARE 8 FEET HIGH BY 24 FEET WIDE WHEN ONE FALLS THE FORCE OF IMPACT IS TREMENDOUS SAYS RICHARD SCHIEBER A PHYSICIAN WITH THE NATIONAL CENTER FOR INJURY PREVENTION AND CONTROL AT THE CDC THE CDC REPORT IS BASED ON INFORMATION GATHERED BY THE CONSUMER PRODUCT SAFETY COMMISSION IN ONE 1993 INCIDENT A 12YEAROLD BOY IN WARNER ROBINS GA RECEIVED PERMANENT BRAIN DAMAGE WHEN A SOCCER GOAL WAS PUSHED OVER ON HIM BY OTHER CHILDREN RUNNING AGAINST THE NET ACCORDING TO A CONSUMER PRODUCT SAFETY COMMISSION ACCIDENT SUMMARY THERE ARE NO FEDERAL SAFETY RULES FOR SOCCER GOALS SOCCERGOAL MANUFACTURERS THE SOCCER INDUSTRY COUNCIL OF AMERICA AND THE US CONSUMER PRODUCT SAFETY COMMISSION HAVE SET UP A VOLUNTARY PROGRAM TO DISTRIBUTE SAFETY ALERTS AND WARNING LABELS WITH GOALS BUT AS MANY AS 40 OF THE ESTIMATED 250000 SOCCER GOALS IN THE US ARE HOMEMADE AND FALL THROUGH THE GOVERNMENT AND INDUSTRY SAFETY NET ACCORDING TO THE CDC REPORT ONLY 30 OF SOCCERGOAL MISHAPS HAPPENED DURING GAMES OR PRACTICES A MORE COMMON OCCURRENCE WAS FOR GOALS TO TOPPLE WHEN THEY WERE MOVED OR WHEN KIDS WERE PLAYING ON OR AROUND THEM FOR NOW SOCCERINDUSTRY AND GOVERNMENT OFFICIALS ARE HOPING THE VOLUNTARY SAFETY CAMPAIGN WILL WORK BUT THE CAMPAIGN WHICH BEGAN IN 1992 DIDN'T PREVENT TWO DEATHS LAST YEAR THERE IS CONTINUING CONCERN SAYS KEN GILES A SPOKESMAN FOR THE CONSUMER PRODUCT SAFETY COMMISSION IF THE VOLUNTARY EFFORT DOESN'T SOLVE THE PROBLEM OTHER OPTIONS INCLUDING MANDATORY REGULATIONS ARE POSSIBLE DESPITE THE ACCIDENTS NO ONE IS SUGGESTING THAT CHILDREN SHY AWAY FROM SOCCER WE WANT CHILDREN TO ENJOY THEMSELVES PLAYING SOCCER IT'S GOOD EXERCISE IT'S A GOOD SPORT DR SCHIEBER SAYS BUT WE ALSO WANT PEOPLE TO BE AWARE THERE ARE CERTAIN THINGS THEY SHOULD DO TO MAINTAIN IT AS A SAFE SPORT 9404010031 940401 BUSINESS BRIEF FOOD LION INC STORES ARE ACCUSED OF BIAS IN SUIT FILED BY 11 PEOPLE FOOD LION INC SALISBURY NC IS BEING ACCUSED OF RACIAL DISCRIMINATION IN A LAWSUIT FILED BY 11 CURRENT AND FORMER EMPLOYEES THE SUIT FILED IN US DISTRICT COURT IN ATHENS GA CHARGES THAT BLACK EMPLOYEES HAVE BEEN PASSED OVER FOR PROMOTIONS AND DISCHARGED FOR MINOR INFRACTIONS OF WORK RULES AT GROCERY STORES IN GEORGIA FLORIDA NORTH CAROLINA VIRGINIA MARYLAND AND TEXAS THE ACTION IS AN OUTGROWTH OF A LAWSUIT FILED LAST YEAR IN ATHENS GA BY A PARTTIME CASHIER WHO CLAIMED SHE WAS DENIED FULLTIME EMPLOYMENT THAT COMPLAINT WAS AMENDED TO INCLUDE 10 OTHER CURRENT AND FORMER EMPLOYEES THE COMPLAINT SEEKS RESTITUTION AS WELL AS UNSPECIFIED COMPENSATORY AND PUNITIVE DAMAGES A FOOD LION SPOKESMAN SAID THE COMPANY BELIEVES THE SUIT IS WITHOUT MERIT HE SAID THE COMPANY RECRUITS HIRES AND DEVELOPS ITS EMPLOYEES WITHOUT REGARD TO RACE 9404010030 940401 BUSINESS BRIEF CANAL PLUS SA TV FIRM PLANS INVESTMENT OF UP TO 524 MILLION IN 1994 FRENCH PAYTV OPERATOR CANAL PLUS SA SAID IT PLANS TO MAKE AT MOST 3 BILLION FRANCS 524 MILLION OF INVESTMENTS IN 1994 COMPARED WITH INVESTMENTS OF 23 BILLION FRANCS IN 1993 THE COMPANY ALSO SAID IT INTENDS TO RAISE ITS CURRENT 10 STAKE IN LYONNAISE COMMUNICATION SA A UNIT OF LYONNAISE DES EAUXDUMEZ SA COMPANY OFFICIALS DIDN'T SPECIFY HOW MUCH THEY WOULD LIKE TO RAISE THEIR HOLDING IN THE LYONNAISEDUMEZ CABLE UNIT AT A NEWS CONFERENCE CANAL PLUS CHAIRMAN PIERRE LESCURE ALSO SAID THE GROUP EXPECTS SUBSCRIPTION GROWTH IN FRANCE TO PICK UP IN 1995 FOLLOWING EXPECTED STAGNATION IN 1994 AT ABOUT 37 MILLION SUBSCRIBERS HE ADDED THAT NEXT YEAR'S RECOVERY WOULD PARTLY REFLECT ECONOMIC TRENDS AND THE GROUP'S EFFORTS TO CUT DOWN ON ILLEGAL RECEPTION OF ITS SIGNAL PART OF THE REASON FOR THE INCREASE IN INVESTMENTS IN 1994 IS A LARGESCALE UPGRADING OF THE DECODERS CURRENTLY USED BY SUBSCRIBERS REFLECTING 1993'S ECONOMIC SLUMP CANCELLATION RATES ON CANAL PLUS'S SUBSCRIPTIONS ROSE TO 8 FROM 72 IN 1992 9404010029 940401 LETTERS TO THE EDITOR OUR DRUG RECALL WAS WELLMANAGED I WANT TO PUT ON THE RECORD COPLEY PHARMACEUTICAL'S VIEWS OF THE RECALL DISCUSSED IN THE STORY COPLEY GETS STRONG DOSE OF CRITICISM FOR ITS DRUG RECALL MARCH 1 WE DETERMINED THAT THERE WAS A PROBLEM WITH A BACTERIAL CONTAMINATION ON A PACKAGING LINE USED FOR OUR ALBUTEROL SULFATE SOLUTION 05 20 ML WE PROMPTLY NOTIFIED THE FOOD AND DRUG ADMINISTRATION OUR PRESS RELEASE WENT TO EVERY NEWSWIRE AND NEWSPAPER IN AMERICA AND EVERY TV AND RADIO STATION IN ADDITION WE SENT 290000 US PHARMACISTS AND PHYSICIANS MAILGRAMS THAT ARRIVED WITHIN 24 TO 48 HOURS OF RELEASING THE NEWS TO THE MEDIA THIS MEANT THAT SOME PHARMACISTS AND PHYSICIANS GOT THEIR MAILGRAMS AFTER SOME MEMBERS OF THE PUBLIC WE APOLOGIZE FOR ANY CONFUSION THIS MAY HAVE CAUSED BUT IT WAS A NECESSARY URGENCY WE HAD RECEIVED SOME COMPLAINTS EARLY ON REGARDING THE MANAGEMENT OF OUR TELEPHONE LINES WE CONFESS THAT WE WERE INITIALLY UNPREPARED FOR THE VOLUME OF CALLS WE RECEIVED WE PROMPTLY ADDED PHONE LINES AND STAFF TO HANDLE CALLS THE LOGJAM WAS BROKEN AND ALL PATIENT CALLS WERE HANDLED EXPEDITIOUSLY BEGINNING WITH THE DAY AFTER THE ANNOUNCEMENT WE FIELDED MORE THAN 25000 CALLS THE BOTTOM LINE IS THAT THE WIDE COVERAGE VIA PRINT AND ELECTRONIC MEDIA AND THROUGH NOTICES TO PHYSICIANS AND PHARMACISTS SUGGESTS THAT THE RECALL WAS WELLMANAGED BY OUR COMPANY 9404010028 940401 BUSINESS BRIEF RMI TITANIUM CO REVERSE 1FOR10 STOCK SPLIT IS APPROVED BY SHAREHOLDERS RMI TITANIUM CO SAID THAT AT ITS ANNUAL MEETING HELD YESTERDAY SHAREHOLDERS WHO OWN MORE THAN 85 OF THE COMPANY'S COMMON SHARES OUTSTANDING APPROVED A REVERSE 1FOR10 STOCK SPLIT THE NILES OHIO COMPANY SAID IT HAS ALSO FILED A CERTIFICATE OF AMENDMENT TO ITS ARTICLES OF INCORPORATION WITH THE STATE OF OHIO WHICH MAKES THE REVERSE SPLIT EFFECTIVE IMMEDIATELY RMI TITANIUM HAS MOST RECENTLY HAD 14750459 COMMON SHARES OUTSTANDING AFTER THE EFFECT OF THE REVERSE SPLIT IT WILL HAVE 1475046 COMMON SHARES OUTSTANDING SAID TIMOTHY G RUPERT THE COMPANY'S CHIEF FINANCIAL OFFICER ADDITIONALLY THE COMPANY SAID THAT SUBJECT TO THE APPROVAL OF ITS BOARD IT INTENDS TO USE A RIGHTS OFFERING TO RAISE UP TO 30 MILLION FOR FINANCING THE DEVELOPMENT OF NEW MARKETS FOR ITS PRODUCTS RMI TITANIUM MANUFACTURES TITANIUM MILL PRODUCTS HOTFORMED AND SUPERPLASTICALLY FORMED PARTS AND TITANIUM POWDER 9404010027 940401 BUSINESS BRIEF HALLIBURTON CO LOW OIL PRICES CITED IN PLAN TO CUT AS MANY AS 700 JOBS HALLIBURTON CO FEELING THE EFFECTS OF LOW CRUDEOIL PRICES SAID IT WOULD SLASH AS MANY AS 700 SALARIED JOBS INCLUDING 15 SENIORMANAGEMENT POSITIONS IN ITS ENERGYSERVICES BUSINESS THE OILFIELD SERVICES ENGINEERING AND CONSTRUCTION CONCERN IN DALLAS SAID THAT LOW OIL PRICES CONTINUE TO AFFECT PETROLEUMINDUSTRY CUSTOMERS' SPENDING PLANS REDUCING HALLIBURTON'S BUSINESS OPPORTUNITIES IN ENERGY SERVICES HALLIBURTON SAID SOME EMPLOYEES WILL BE REASSIGNED AND THAT 500 TO 700 SALARIED POSITIONS WILL BE CUT DURING THE SECOND QUARTER HALLIBURTON ALSO SAID IT WILL CONSOLIDATE SEVERAL ENERGYSERVICES SEGMENT FUNCTIONS THE COMPANY SAID IT HAS BEEN SHRINKING ITS WORK FORCE FROM A RECORD 117000 EMPLOYEES IN THE EARLY 1980S TO ABOUT 64700 WORLDWIDE AT THE END OF 1993 FOR 1993 HALLIBURTON REPORTED A NET LOSS OF 161 MILLION OR 143 A SHARE ON REVENUE OF 635 BILLION 9404010026 940401 LETTERS TO THE EDITOR UNLICENSED BROKERS IN PRUDENTIAL CASE REGARDING YOUR FEB 24 ARTICLE CONCERNING PRUDENTIAL SECURITIES' UNLICENSED BROKERS IT IS UNFORTUNATE THAT PRUDENTIAL IS TRYING TO PLACE THE ENTIRE BLAME FOR THIS PROBLEM ON MY SHOULDERS INASMUCH AS I WAS THE FORMER REGISTRATION MANAGER AS EVERYONE IN THE INDUSTRY KNOWS THOUGH ALL OF YOUR READERSHIP MAY NOT THE REGISTRATION FUNCTION IS A TECHNICAL AND OFTEN COMPLEX MATTER THOSE SPECIALISTS WHO HANDLE REGISTRATION EVERY DAY KNOW THAT A REGISTRATION MANAGER IMPLEMENTS NOT SETS POLICY YOUR ARTICLE IMPLIED THAT PRUDENTIAL HAD NO SYSTEMS OR POLICIES IN PLACE TO PREVENT UNLICENSED BROKERS FROM BEING PAID PRUDENTIAL DID INDEED HAVE SYSTEMS AND POLICIES BUT THEY NEEDED TO BE IMPROVED MANY PEOPLE AT PRUDENTIAL KNOW THAT I REGULARLY MET WITH SYSTEMS COMPLIANCE AUDIT AND LAW DEPARTMENT PERSONNEL OVER FOUR YEARS IN AN EFFORT TO STRENGTHEN MY DEPARTMENT'S MONITORING CAPABILITIES I WOULD EVEN SAY THAT SOME PROGRESS WAS MADE ADDITIONALLY I MUST REFUTE PRUDENTIAL'S STATEMENT THAT I WAS TERMINATED IN LATE AUGUST 1993 AS A RESULT OF THE ANITA WHELAN MEMO IN FACT PRIOR TO THE MEMO I WAS ALREADY INVOLVED IN DISCUSSIONS TO TRANSFER TO ANOTHER PRUDENTIAL DIVISION AS LATE AS NOV 17 I INTERVIEWED FOR A TRAINING POSITION IN THE HUMAN RESOURCES DEPARTMENT MY DEPARTURE DATE WAS NOV 19 1993 9404010024 940401 BUSINESS BRIEF TRIZEC CORP EXTENSION OF COURT ORDER BLOCKS SENIOR DEBT HOLDERS TRIZEC CORP WAS GRANTED A 25DAY EXTENSION OF A COURT ORDER THAT IS BLOCKING ITS SENIOR DEBENTURE HOLDERS FROM DEMANDING REPAYMENT OF 12 BILLION CANADIAN DOLLARS US871 MILLION DEBT OR SEIZING THE COMPANY'S ASSETS THE ORDER WAS DUE TO EXPIRE YESTERDAY IN AN INTERIM RULING ALBERTA COURT OF QUEEN'S BENCH JUDGE GREGORY FORSYTH SAID HE WAS GRANTING THE EXTENSION IN ORDER TO GIVE LAWYERS FOR THE CALGARY ALBERTA REAL ESTATE DEVELOPER AND ITS SENIOR CREDITORS A CHANCE TO CROSSEXAMINE EACH OTHER ON ISSUES RELATED TO TRIZEC'S APPLICATION FOR A FURTHER GRACE PERIOD THE ISSUES TO BE DEALT WITH INCLUDE CONFLICTING EVIDENCE ON THE COMPANY'S SOLVENCY HE SAID JUSTICE FORSYTH RULED THAT ANY FURTHER DOCUMENTS PRESENTING EVIDENCE RELEVANT TO THE CASE MUST BE FILED WITH THE COURT BY APRIL 11 HE SAID HE WILL HEAR FINAL ARGUMETS AT A APRIL 25TH COURT HEARING TRIZEC WHICH IS CONTROLLED BY TORONTO FINANCIERS EDWARD AND PETER BRONFMAN HAS BEEN TRYING TO RESTRUCTURE C19 BILLION OF DEBT SINCE LAST SUMMER 9404010023 940401 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER WASHINGTON PUZZLES OVER THE REASONS BEHIND THE STORMY FINANCIAL MARKETS FED OFFICIALS NOTE THAT THE RUNUP IN LONGTERM INTEREST RATES FOLLOWED BUT DIDN'T COINCIDE WITH ITS RECENT MOVES TO RAISE SHORTTERM RATES BUT FED CHIEF GREENSPAN'S ONEQUARTERPERCENTAGE POINT RATE INCREASES ARE CRITICIZED BY SOME FOR CREATING UNCERTAINTY ABOUT HOW MUCH FURTHER THE FED PLANS TO RAISE SHORTTERM RATES PRESIDENT CLINTON CAUTIONED YESTERDAY THAT PEOPLE SHOULD REMAIN CONFIDENT THAT THERE'S NOT INFLATION IN THE ECONOMY SOME ADMINISTRATION AND FED OFFICIALS SUSPECT THE STEEPNESS OF THE BOND MARKET'S FALL IS LINKED TO THE DOLLAR'S DECLINE AGAINST THE YEN IN MIDFEBRUARY BIGTIME INVESTORS LIKE GEORGE SOROS AND MICHAEL STEINHARDT ARE SAID TO HAVE LOST HEAVILY WHEN THE DOLLAR FELL FORCING THEM TO LIQUIDATE HOLDINGS OF US BONDS THAT WOULD PUSH PRICES DOWN AND INTEREST RATES UP THE WHITE HOUSE IS WATCHING THE FINANCIAL TURMOIL CLOSELY ECONOMIC AIDE GENE SPERLING SAYS BUT THE HONEST TRUTH IS THAT THE UNIVERSAL VIEW IN THE ADMINISTRATION IS THAT THE FUNDAMENTALS LOOK SOUND PEACE PROGRESS IN BOSNIA IS TEMPERED BY WORRIES ABOUT NEW CLASHES US AND NATO OFFICIALS FEAR THAT THE MUSLIM MILITARY DRAWS A PERVERSE CONCLUSION FROM THE PEACE ACCORD WITH THE CROATS THAT IT CAN NOW REDEPLOY ITS INFANTRY AGAINST THE SERBS MUSLIM LEADERS TELL VISITORS THERE WILL BE NO PEACE WITHOUT JUSTICE THE UN COMMANDER IN SARAJEVO COMPLAINS THAT RUSSIAN TROOPS THERE ARE OF LITTLE USE AND QUESTIONS NATO PEACEKEEPING PLANS FOR ARMORED TROOPS BUT A NATO OFFICER REJECTS HIS CONCERNS SAYING HEAVY ARMOR WOULD BE NEEDED QUICKLY IF THINGS GO BAD NATO ALSO WANTS UNIMPEDED MOVEMENT UNLIKE UN TROOPS SAYS A US OFFICIAL YOU HOLD UP A NATO CONVOY AND WE'LL BLOW YOU OFF THE ROAD HEALTH CARE IS ON VOTERS' MINDS MORE THAN WHITEWATER LAWMAKERS SAY FEW VOTERS SEEM TO CARE ABOUT CLINTON'S WHITEWATER WOES SAY MEMBERS OF CONGRESS MEETING WITH CONSTITUENTS OVER THE EASTER RECESS BUT THEY AREN'T ENTHUSED ABOUT HIS HEALTHCARE PLAN EITHER HIS VERSION IS LOSING SUPPORT SAYS NEW MEXICO REP RICHARDSON VOTERS DON'T WANT THE GOVERNMENT TO BE MORE INVOLVED SAYS LOUISIANA SEN BREAUX WHO BACKS A RIVAL PLAN BUT OKLAHOMA REP SYNAR SAYS HIS CONSTITUENTS LIKE THE CLINTON PLAN THE MORE THEY UNDERSTAND IT LAWMAKERS REPORT INCREASING PUBLIC PRESSURE TO PASS SOME BILL OTHERWISE THERE'LL BE A MAJOR BACKLASH AGAINST INCUMBENTS WARNS CALIFORNIA REP MATSUI TOBACCOSTATE DEMOCRATS WHOSE VOTES MAY BE NEEDED TO PASS A HEALTH BILL WILL PRESS TO RESTRAIN TOBACCOTAX INCREASES RIGHT DOWN TO THE FINAL WIRE SAYS KENTUCKY REP BARLOW STRANGE BEDFELLOWS CONSUMERS UNION WHICH WANTS A CANADIANSTYLE HEALTH SYSTEM THAT WOULD WIPE OUT THE PRIVATEINSURANCE INDUSTRY JOINS WITH MAJOR INSURANCE COMPANIES ON ONE HEALTHCARE ISSUE FIGHTING THE WEAKENING OF ANTITRUST LAWS FOR MEDICALCARE PROVIDERS BLAME GAME CLINTON AIDES BLAME DEPUTY TREASURY CHIEF ALTMAN FOR WHITEWATERPROBE LEAKS ABOUT STEPHANOPOULOS'S CALLS TO TREASURY ONE OFFICIAL WHO HAS BEEN SUBPOENAED SNIPES THAT ALTMAN IS OUT TO PROTECT HIMSELF BY POINTING FINGERS AT OTHERS ALTMAN VIGOROUSLY INSISTS HE ISN'T THE SOURCE OF LEAKS AND VOWS TO STAY ON JUST IN CASE NEW YORK REP RANGEL AND CALIFORNIA'S MATSUI QUIETLY STEP UP SOUNDINGS ABOUT SEEKING TO SUCCEED WAYS AND MEANS CHAIRMAN ROSTENKOWSKI IF HE IS INDICTED FLORIDA'S GIBBONS IS NEXT IN LINE BUT THE WOULDBE CHALLENGERS TAKE HOPE FROM REP OBEY'S ELECTION AS APPROPRIATIONS CHAIRMAN OVER MORE SENIOR RIVALS CRIME DEBATE THOSE FAVORING PREVENTION OVER PUNISHMENT IN THE CRIME BILL FEAR A LACK OF A UNITED FRONT BY THE CONGRESSIONAL BLACK CAUCUS WILL LET HOUSE LEADERS COMPROMISE AWAY PREVENTION PROVISIONS THE CAUCUS SOUGHT SOME BLACK LAWMAKERS PLAN TO VOTE AGAINST THE BILL BECAUSE IT WOULD EXPAND THE FEDERAL DEATH PENALTY NOT SO FAST TELECOMMUNICATIONS LEGISLATION SUDDENLY IS LESS CERTAIN THE REGIONAL BELLS WANT THE SENATE BILL REVISED TO MAKE IT EASIER FOR THEM TO ENTER THE LONGDISTANCE PHONE MARKET NO LEGISLATION IS BETTER THAN THE CURRENT BILL SAYS U S WEST CHAIRMAN RICHARD MCCORMICK BUT COMMERCE COMMITTEE CHAIRMAN HOLLINGS SPONSOR OF THE SENATE BILL THREATENS TO BLOCK ACTION IF MAJOR CHANGES ARE MADE LONGDISTANCE CARRIERS PUSH FOR REVISIONS IN THE HOUSE BILL THAT FAVORS THE BELLS UNDER A COMPROMISE BY POWERFUL CHAIRMEN DINGELL AND BROOKS NEITHER SIDE WANTS TO OPENLY OPPOSE THE SWEEPING LEGISLATION WHICH SEEMED HEADED FOR PASSAGE THIS YEAR BUT THE SKIRMISHING ALREADY IS CAUSING DELAYS THAT COULD KILL THE BILLS SEN BREAUX NOW PLACES ODDS OF PASSAGE AT NO BETTER THAN 5050 IT'S IFFY MINOR MEMOS UNDER FIRE FROM BUSINESS FOR HIS TOUGH STANCE ON CHINA TRADE AND HUMAN RIGHTS THE STATE DEPARTMENT'S WINSTON LORD TELLS THE US CHAMBER OF COMMERCE I FEEL A LITTLE BIT LIKE TONYA HARDING JOINING A NANCY KERRIGAN FAMILY REUNION HERE HOT AIR AND COLD NIGHTS ON A RECENT SATURDAY AT A SUBURBAN WASHINGTON HOMELESS SHELTER THE CHOSEN TV FARE WAS THE MCLAUGHLIN GROUP FROM THE LET'SBELITERAL CATEGORY THE CENTER FOR NATIONAL POLICY INVITES JOURNALISTS TO A SQUARETABLE LUNCHEON DISCUSSION 9404010022 940401 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 7 HIGH 3 1/2 LOW 3 1/2 NEAR CLOSING BID 4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 1/4 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 360 30 TO 44 DAYS 363 45 TO 59 DAYS 368 60 TO 74 DAYS 375 75 TO 99 DAYS 380 100 TO 119 DAYS 385 120 TO 149 DAYS 397 150 TO 179 DAYS 402 180 TO 239 DAYS 412 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 369 30 DAYS 378 60 DAYS 390 90 DAYS CERTIFICATES OF DEPOSIT 303 ONE MONTH 313 TWO MONTHS 324 THREE MONTHS 356 SIX MONTHS 393 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 365 ONE MONTH 393 THREE MONTHS 418 SIX MONTHS BANKERS ACCEPTANCES 359 30 DAYS 368 60 DAYS 378 90 DAYS 389 120 DAYS 398 150 DAYS 404 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 11/16 3 9/16 ONE MONTH 3 13/16 3 11/16 TWO MONTHS 3 15/16 3 13/16 THREE MONTHS 4 1/16 3 15/16 FOUR MONTHS 4 3/16 4 1/16 FIVE MONTHS 4 1/4 4 1/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 11/16 ONE MONTH 3 15/16 THREE MONTHS 4 1/4 SIX MONTHS 4 3/4 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 625 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 MARCH 28 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 350 13 WEEKS 385 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 815 60 DAYS 821 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 807 60 DAYS 814 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 595 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 285 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9404010021 940401 BUSINESS BRIEF CARDIAC CONTROL SYSTEMS INC MEDICAL PRODUCTS FIRM ALERTS FDA OF PACEMAKER TROUBLE CARDIAC CONTROL SYSTEMS INC A MEDICAL PRODUCTS MAKER SAID IT HAS ADVISED THE FOOD AND DRUG ADMINISTRATION OF A SAFETY ALERT TO PHYSICIANS CONCERNING ITS MAESTRO II PACEMAKER THE COMPANY SAID IT HAS RECEIVED THREE REPORTS OF THE UNITS PACING PRIOR TO IMPLANT AT A FIXED RATE OF 80 PULSES A MINUTE INSTEAD OF A RATE PROGRAMMED FOR THE PATIENT JB GERACI DIRECTOR OF REGULATORY AFFAIRS FOR THE PALM COAST FLA COMPANY SAID CARDIAC CONTROL HAS RECALLED UNIMPLANTED UNITS AND ADVISED DOCTORS TO MONITOR THEIR PATIENTS WITH THE DEVICES MS GERACI SAID THE COMPANY HAS RECEIVED NO INDICATION OF PROBLEMS WITH THE APPROXIMATELY 270 UNITS ALREADY IN PATIENTS THE COMPANY SAID THE VOLUNTARY RECALL WILL AFFECT 26 UNITS THE UNITS RECEIVED CLEARANCE BY THE FDA IN MAY 1993 MS GERACI SAID 9404010020 940401 BUSINESS BRIEF FIRST OF MICHIGAN CAPITAL CORP SHAREHOLDERS SUE COMERICA FOR CANCELING ACQUISITION SHAREHOLDERS OF FIRST OF MICHIGAN CAPITAL CORP DETROIT HAVE SUED COMERICA INC FOR BACKING OUT OF AN AGREEMENT TO PURCHASE FIRST OF MICHIGAN LAST YEAR COMERICA A DETROIT BANKHOLDING COMPANY AGREED IN JANUARY 1993 TO A 45 MILLION STOCK DEAL COMERICA SAID IT CANCELED THE DEAL TWO MONTHS LATER AFTER LEARNING FOUR KEY EMPLOYEES IN FIRST OF MICHIGAN'S CORPORATE FINANCING STAFF HAD JOINED RONEY & CO A BROKERAGE FIRM IN A STATEMENT THE SHAREHOLDERS ASSERTED THE ECONOMIC CONTRIBUTION OF THESE FOUR EMPLOYEES COMPARED TO THE MORE THAN 300 RETAIL BROKERS EMPLOYED BY FIRST OF MICHIGAN WAS IMMATERIAL JOSEPH M MENGDEN RITA D CARSLEY JANICE L COOPER AND MARGARET M CROCE SEEK ABOUT 16 MILLION IN DAMAGES ON BEHALF OF ALL FIRST OF MICHIGAN STOCKHOLDERS AND OPTION HOLDERS AS OF MARCH 31 1993 COMERICA SAID THE SUIT IS WITHOUT MERIT FIRST OF MICHIGAN CAPITAL A REGIONAL INVESTMENT BANK LAST SPRING FILED A BREACHOFCONTRACT SUIT AGAINST COMERICA FOR CANCELING THE MERGER DEPOSITIONS ARE CURRENTLY BEING TAKEN FOR THAT SUIT 9404010019 940401 BUSINESS BRIEF CAMBRIDGE BIOTECH CORP AUDITOR RESIGNS WITHDRAWS ITS OPINION OF 1992 RESULTS CAMBRIDGE BIOTECH CORP SAID THAT DELOITTE & TOUCHE RESIGNED AS ITS AUDITOR AND WITHDREW ITS OPINION OF THE COMPANY'S 1992 RESULTS CAMBRIDGE BIOTECH OF WORCESTER MASS HAD ANNOUNCED WEDNESDAY THAT DELOITTE HAD SUSPENDED ITS AUDIT OF 1993 RESULTS BECAUSE OF CONCERNS ABOUT CERTAIN TRANSACTIONS AND THEIR POSSIBLE IMPACT ON THE COMPANY'S FINANCIAL RESULTS AT THE TIME THE COMPANY SAID IT HAD APPOINTED A COMMITTEE OF INDEPENDENT DIRECTORS THAT HIRED A SPECIAL COUNSEL TO INVESTIGATE THE TRANSACTION JAMES C BASS CHIEF FINANCIAL OFFICER SAID THAT WE CANNOT DETERMINE WHETHER OR NOT A FRAUD HAS BEEN COMMITTED THE COMPANY SAID IN JANUARY THAT IT EXPECTS A SUBSTANTIAL LOSS IN THE FOURTH QUARTER ON SIGNIFICANT CHARGES FOR ASSET REVALUATION AND INVENTORY OBSOLESCENCE CAMBRIDGE BIOTECH HASN'T REPORTED RESULTS FOR 1993 FOR THE NINE MONTHS OF 1993 IT REPORTED A NET LOSS OF 95 MILLION OR 41 CENTS A SHARE ON REVENUE OF 255 MILLION 9404010018 940401 BUSINESS BRIEF WESTCOTT COMMUNICATIONS INC SATELLITE NETWORK DROPS BID FOR CORPORATE TRAINING FIRM WESTCOTT COMMUNICATIONS INC SAID IT WOULDN'T MAKE A THIRD OFFER TO ACQUIRE SANDY CORP AFTER THE TROY MICHBASED PROVIDER OF CORPORATE TRAINING PROGRAMS REJECTED A SWEETENED MERGER PROPOSAL SAYING IT WISHED TO REMAIN INDEPENDENT SANDY SPURNED THE UNSOLICITED STOCKSWAP OFFER AND DECLINED DISCUSSIONS WITH WESTCOTT A CARROLLTON TEXASBASED SPECIALIZED SATELLITE TV NETWORK OPERATOR LAST FRIDAY WESTCOTT OFFERED ONE SHARE OF ITS COMMON FOR EVERY 1896 SHARES OF SANDY UP FROM THE ORIGINAL OFFER OF ONE WESTCOTT SHARE FOR EVERY 281 SANDY SHARES WE WILL NOT CONTINUE THE PROCESS BEYOND THIS SAID PHYLLIS FARRAGUT WESTCOTT'S CHIEF FINANCIAL OFFICER WE HAVE HAD NO FEEDBACK FROM THEM IT MAKES NO SENSE FOR US TO MAKE OFFERS IN A VACUUM 9404010016 940401 BUSINESS BRIEF HYUNDAI CORP BIG CZECH TIRE MAKER SIGNS 3YEAR 15 MILLION CONTRACT HYUNDAI CORP BASED IN SEOUL SIGNED A THREEYEAR 15 MILLION CONTRACT WITH BARUM CONTINENTAL CO TO SUPPLY TIRE TUBES ACCORDING TO A HYUNDAI OFFICIAL IT WILL ALSO SELL 2 MILLION OF CAR BATTERIES THIS YEAR TO BARUM CONTINENTAL THE CZECH REPUBLIC'S BIGGEST TIRE MAKER HYUNDAI IS ALSO IN TALKS WITH THE CZECH COMPANY TO SELL OTHER CAR COMPONENTS INCLUDING TIRE MOLDS AND NYLON TIRE CORDS SAID THE OFFICIAL WE HOPE WE CAN FURTHER ADVANCE INTO THE EAST EUROPEAN CARCOMPONENT MARKET WITH THE LATEST SALES OF TIRE TUBES TO THE CZECH FIRM THE OFFICIAL SAID 9404010015 940401 ECONOMY US TARGETS JAPAN'S HURDLES TO TRADE REPORT IS BASIS FOR POSSIBLE RETALIATION BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US MOVED TO TIGHTEN PRESSURE ON JAPAN BY IDENTIFYING JAPANESE TRADING BARRIERS THAT WASHINGTON COULD TARGET FOR RETALIATION THE US YESTERDAY RELEASED A 281PAGE ANNUAL REPORT ON TRADE BARRIERS AROUND THE GLOBE DEVOTING THE MOST SPACE TO JAPAN RUNNING 44 PAGES ABOUT 50 LONGER THAN LAST YEAR THE JAPANESE SECTION CRITICIZED TOKYO FOR IMPORT RESTRICTIONS AFFECTING A RANGE OF GOODS AND SERVICES FROM COMPUTERS TO WINE AS COMPARED TO OTHER INDUSTRIALIZED ECONOMIES THE REPORT SAID JAPAN'S DOMESTIC MARKET STILL REMAINS SIGNIFICANTLY LESS OPEN TO IMPORTS AND FOREIGN DIRECT INVESTMENT DESPITE YEARS OF MARKET OPENING EFFORTS THESE FINDINGS ARE USED BY THE US TRADE REPRESENTATIVE TO DETERMINE WHETHER TO BRING FURTHER ACTIONS ON APRIL 30 THE US WILL DECIDE WHETHER TO CHALLENGE GOVERNMENT PURCHASING PRACTICES IT IS EXPECTED TO GO AFTER TOKYO IN PARTICULAR AND ON SEPT 30 THE US WILL DESIGNATE PRIORITY FOREIGN COUNTRY PRACTICES OF CERTAIN NATIONS UNDER A TOUGH TRADE PROVISION KNOWN AS SUPER 301 IN BOTH CASES THE US WILL THREATEN TRADE SANCTIONS AGAINST FOREIGN COUNTRIES THAT DON'T COMPLY WITH US DEMANDS FOR MARKET LIBERALIZATION UNLESS JAPAN MAKES CHANGES SOUGHT BY THE US UNDER THE FAILED TRADE TALKS JAPAN IS ALMOST CERTAIN TO BE NAMED UNDER SUPER 301 IN JAPAN THE US REPORT SEEMED CERTAIN TO RAISE TRADE TENSIONS A NOTCH FURTHER TRADE MINISTER HIROSHI KUMAGAI SAID HE HOPED THE REPORT WOULDN'T DELAY A RESUMPTION OF THE STALLED BILATERAL FRAMEWORK TRADE TALKS I THINK WE HAVE DIFFERENT APPROACHES TO THE TRADE ISSUE HE SAID MEANTIME JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY IS WORKING ON ITS OWN UNFAIR TRADE REPORT WHICH IT WILL RELEASE NEXT MONTH A MITI SPOKESMAN SAID THE SPOKESMAN DECLINED TO COMMENT ON ITS CONTENT BUT THE NIHON KEIZAI SHIMBUN NEWSPAPER REPORTED FRIDAY THAT MITI WILL CRITICIZE US DEMANDS FOR NUMERICAL MEASURES OF FOREIGN ACCESS TO JAPAN'S MARKETS AND WILL ASSAIL WHAT IT CALLS UNFAIR PRACTICES IN THE US THE US REPORT GIVES WASHINGTON'S VIEW OF THE STATE OF WORLD TRADE ANALYZING THE ALLEGED MISDEEDS OF ABOUT THREEDOZEN COUNTRIES AND THE EUROPEAN UNION THE DOMINICAN REPUBLIC IS REBUKED FOR HIGH TARIFFS ON AUTOS AND APPLIANCES WHILE RUSSIA IS CRITICIZED FOR PIRATING US VIDEOTAPES AND SOFTWARE THE HEART OF THE BOOK HOWEVER RESTS WITH MAJOR TRADING PARTNERS OF THE US CHINA WARRANTED 16 PAGES A GOOD PORTION OF THAT TEXT COMPLIMENTED BEIJING FOR TAKING IMPORTANT STEPS TO STREAMLINE IMPORT CONTROLS NEVERTHELESS THE REPORT SAID US ACCESS TO CHINA IS STILL LIMITED BY A MYRIAD OF IMPORT RESTRICTIONS AND LICENSING REQUIREMENTS CHINA WAS ALSO CRITICIZED IN THE REPORT FOR RAMPANT PIRACY INCLUDING HAVING 26 COMPACT DISK AND LASER DISK FACTORIES THAT PUMP OUT ILLEGAL COPIES OF US MOVIES AND SONGS THE EU WHICH PUBLISHES ITS OWN REPORT ON US TRADE BARRIERS WAS TAKEN TO TASK FOR ITS QUOTAS ON US TELEVISION PROGRAMMING IN THE FACE OF SHARP US CRITICISM OF THE QUOTAS FRANCE ACTUALLY BROADENED THEIR REACH IN DECEMBER THE FRENCH PARLIAMENT APPROVED A LAW REQUIRING FRENCH RADIO STATIONS TO RESERVE 40 OF THEIR PRIMETIME PROGRAMMING FOR FRENCH SONGS THE REPORT SAID ALTHOUGH THE US HAS BLUSTERED ABOUT THESE QUOTAS FOR YEARS IT HASN'T FOUND A WAY TO PERSUADE PARIS TO DROP THEM THAT'S BECAUSE FRENCH FILMS AND SONGS HAVE SUCH A TINY SHARE OF THE US MARKET THAT AMERICAN RETALIATION OF FORMALLY LIMITING THEM SEEMS A MEANINGLESS GESTURE WITH JAPAN THE DETAIL AND LENGTH OF THE CHAPTER ACCOMPANIED BY GROWING ACRIMONY WITH TOKYO SUGGEST THE US IS PREPARING TRADE CASES ON GOVERNMENT PURCHASING FOR INSTANCE THE US COMPLAINED THAT THE MARKET SHARE OF FOREIGN COMPUTER MAKERS DROPPED TO 37 IN 1992 FROM 4 A YEAR EARLIER THAT DECLINE COMES AT A TIME OF SURGING US COMPUTER SALES WORLDWIDE IN MEDICAL TECHNOLOGY THE US COMPLAINED THAT AMERICAN COMPANIES HAVE 20 OF THE JAPANESE GOVERNMENT MARKET ABOUT HALF THE SHARE THE US MANAGES IN OTHER MAJOR MARKETS THE ENTRENCHED LEGACY OF BUY JAPANESE' PRACTICES COMBINED WITH STRUCTURAL PROBLEMS IN THE JAPANESE GOVERNMENT PROCUREMENT REGIME MAKE ACCESS TO THIS MARKET A FORMIDABLE TASK THE REPORT SAID THE US WAS SCHEDULED TO COMPLETE A REVIEW OF THE JAPANESE GOVERNMENT SUPERCOMPUTERS YESTERDAY BUT TRADE OFFICIALS SAID THEY HADN'T FINISHED THE WORK US COMPANIES SNAGGED SIX SUPERCOMPUTER SALES OUT OF 15 JAPANESE GOVERNMENT PURCHASES WHICH JAPAN POINTS TO AS GREAT PROGRESS US TRADE OFFICIALS REPLY THAT FEW IF ANY OF THE PURCHASES INVOLVED COMPETITION BETWEEN US AND JAPANESE COMPANIES RATHER THE AWARDS WERE SET ASIDE FOR POLITICAL PURPOSES THE US CASE IN SUPERCOMPUTERS IS CONSIDERABLY WEAKENED BY PROTECTIONIST EFFORTS BACK HOME US GOVERNMENT AGENCIES HAVE BEEN CALLED BEFORE CONGRESSIONAL HEARINGS SIMPLY FOR INVITING JAPANESE FIRMS TO BID ON SUPERCOMPUTER WORK THE US ISN'T EXPECTED TO LAUNCH ANY SPECIFIC TRADE ACTION AGAINST JAPAN BEFORE APRIL 15 WHEN TRADE MINISTERS FROM AROUND THE WORLD GATHER IN MOROCCO TO SIGN THE WORLD TRADING PACT NEGOTIATED IN DECEMBER 9404010014 940401 AT&T SENDS FIRST NOTICES OF LAYOFFS TO MANAGERS NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SENT OUT THE FIRST NOTICES TO MANAGERS TO BE CUT IN A WORK FORCE REDUCTION PROGRAM TARGETING 15000 JOBS IN ITS LONGDISTANCESERVICES UNIT THE REDUCTIONS WILL INCLUDE ABOUT 5000 MANAGERS IN NEW JERSEY SOME OF WHOM RECEIVED NOTICES THIS WEEK AT&T EARLIER THIS YEAR SAID IT PLANS TO REDUCE 8000 TO 9000 WORKERS IN ITS CONSUMER OR RESIDENTIAL LONGDISTANCE UNIT AND 6000 PEOPLE IN ITS BUSINESS LONGDISTANCE SERVICE MANAGERS BEING NOTIFIED IN THE FIRST WAVE OF CUTBACKS ARE BEING OFFERED A VOLUNTARY SEPARATION PACKAGE AN AT&T SPOKESMAN SAID IF WE GET ENOUGH VOLUNTEERS WE WON'T NEED TO TAKE AN INVOLUNTARY REDUCTION ACTION IN FEBRUARY AT&T HAD 96500 EMPLOYEES IN THE COMMUNICATIONSSERVICES GROUP WHICH PROVIDES LONGDISTANCE SERVICES TO RESIDENTIAL AND BUSINESS CUSTOMERS THE NUMBER ALREADY HAS BEEN REDUCED TO 95100 9404010013 940401 LEISURE & ARTS ON SPORTS PROFS HORN IN ON COACHES' SHOE DEAL BY FREDERICK C KLEIN IN COLLEGE SPORTS THE PLAYERS COME AND GO BUT THE COACHES LINGER ON THUS THEY'RE THE STARS FOR BETTER OR WORSE THERE'S BEEN A LOT OF THE LATTER IN THE COLLEGE BASKETBALL SEASON THAT CLIMAXES WITH SATURDAY AND MONDAY'S NCAA FINAL FOUR IN CHARLOTTE NC YOU HAD COACHES LEADING A RETROGRADE MOVEMENT TO ERASE MANY OF THE ACADEMIC REFORMS SO PAINFULLY GRAFTED ONTO THEIR TURF OVER THE PAST SEVERAL YEARS AND PLOTTING BOYCOTTS IF THEY DIDN'T GET THEIR WAY YOU HAD COACHES EXCHANGING NASTY WORDS ON COURT AND HURLING THREATS OF MAYHEM OFF OF IT YOU HAD ONE PETTY TYRANT GUESS WHO KICKING ONE OF HIS PLAYERS AND HEADBUTTING ANOTHER DURING TIRADES THE KID HE KICKED WAS HIS SON IT ALL CRIES OUT FOR AN ANTIDOTE AND FORTUNATELY THERE IS ONE IT COMES FROM THE UNIVERSITY OF ST THOMAS A LARGE ENROLLMENT 10000 SMALL SCHOOL IN ST PAUL MINN NOT TO BE CONFUSED WITH THE UNIVERSITY OF ST THOMAS IN HOUSTON ST THOMAS UNIVERSITY IN MIAMI OR ST THOMAS AQUINAS IN SPARKILL NY ITS FOCUS IS THE BIGBUCKS ATHLETICSHOE CONTRACT THAT MOST EGREGIOUS OF COACHLY EXCESSES PAUL ALPER AND ROBERT RAYMOND ASSOCIATE PROFESSORS IN THE DEPARTMENT OF QUANTITATIVE METHODS AND COMPUTER SCIENCES AT ST THOMAS HAVE WONDERED WHY THE SIDELINE RANTERS SHOULD SOP UP ALL THE CAMPUS SHOE GRAVY ESPECIALLY SINCE THE PLAYERS' FEET NOT THE COACHES' ARE THE SHOWCASES LAST FALL THE TWO PITCHED NIKE INC A PROMINENT GRAVY DISPENSER WITH THE PROPOSITION THAT ORDINARY MR CHIPS TYPES LIKE THEMSELVES BE GIVEN THE CHANCE TO FUNCTION AS SOLE MODELS THEY PROPOSED AN EXPERIMENT UNDER WHICH THEY'D WEAR SHOES NIKE FURNISHED IN ONE CLASS EACH TAUGHT AND ORDINARY STREET SHOES IN ANOTHER CONDUCT BEFOREANDAFTER SURVEYS OF THEIR STUDENTS' SHOEBUYING BEHAVIOR IN BOTH AND SHARE THE RESULTS WITH THE CONCERN NIKE BIT MAKING ALPER AND RAYMOND PROBABLY THE ONLY NONCOACHING COLLEGEFACULTY MEMBERS IN THE LAND TO HAVE THEIR OWN SHOE CONTRACTS THE TEST IS UNDERWAY AND THE WORLD AWAITS THE RESULTS IF YOU DETECT ONE OR MORE TONGUES IN ONE OR MORE OF THE CHEEKS MENTIONED ABOVE YOU'RE CORRECT ALTHOUGH WHEN ASKED THE PROFS ARE CAGY ABOUT IDENTIFYING WHOSE IS WHERE HE RAYMOND IS IN IT FOR THE FREE PAIR OF SNEAKERS I'M ON A CRUSADE TO SHOW HOW ABSURDLY OVERBLOWN THE COLLEGE SPORTSENTERTAINMENT SCENE HAS BECOME MAINTAINS ALPER A SQUASHPLAYING 58YEAROLD SIZE 10 ONLY IN THE UNITED STATES OF TODAY WOULD THE TYPICAL UNIVERSITY STUDENT BE ABLE TO FLAWLESSLY PRONOUNCE AND SPELL KRZYZEWSKI AND YET BE UNABLE TO DISTINGUISH SOCRATES FROM SITTING BULL NOT TO MENTION A MEDIAN FROM A STANDARD DEVIATION I'M IN ON THIS BECAUSE MY OFFICE IS RIGHT DOWN THE HALL FROM HIS ALPER'S AND HE TRIES TO DRAG ME INTO ALL HIS NUTTY SCHEMES THIS IS ABOUT THE LEASTINFLAMMATORY THING HE'S COME UP WITH RETORTS RAYMOND A SEDENTARY 50YEAROLD SIZE 7U HE ADDS AT LEAST I'M ACTUALLY CARRYING OUT THE EXPERIMENT HE'S BEEN BUSY ASSERTING HIS INTEGRITY KRZYZEWSKI OF COURSE IS MIKE COACH OF THE FINAL FOURPERENNIAL DUKE BLUE DEVILS AND POSSESSOR OF A SHOE PACT WITH NIKE WHOSE PAYOUT CONTAINS MORE FIGURES THAN THE ELGIN MARBLES NIKE IS UNFAZED BY SUCH REVELATIONS WE GET SO MANY REQUESTS FOR SPONSORSHIP EVERYONE FROM PRESCHOOL ROPE JUMPERS TO 70YEAROLD MARATHONERS THAT WE HAVE TO TURN DOWN MOST OF THEM BUT THIS WAS SUCH A NOVEL SUGGESTION WE COULDN'T RESIST SAYS DOUGLAS STAMM WHO CARRIES THE TITLE OF DIVISIONAL SPORTS CATEGORY MANAGER AT THE BEAVERTON ORE COMPANY WE THOUGHT THE TEST RESULTS WOULD BE WORTHWHILE ON A COSTBENEFITS BASIS EVEN IF THEY'RE LESS THAN CONCLUSIVE WE'RE GIVING THOSE GUYS A LOT LESS THAN WE'RE PAYING MICHAEL JORDAN YOU KNOW NIKE HAS A GOODLY NUMBER OF NOTABLE COLLEGE BASKETBALL COACHES ON ITS ENDORSEMENT ROLL BESIDES KRZYZEWSKI THEY INCLUDE LUTE OLSEN WHOSE ARIZONA TEAM WILL BE A CONTESTANT AT CHARLOTTE DEAN SMITH OF NORTH CAROLINA'S 1993 NATIONAL CHAMPIONS JOHN THOMPSON OF GEORGETOWN BOBBY CREMINS OF GEORGIA TECH STEVE FISHER OF MICHIGAN BOB HUGGINS OF CINCINNATI STU JACKSON OF WISCONSIN AND OTHERS IF PUBLISHED REPORTS ARE CORRECT SOME COACHES POCKET ANNUAL PAYMENTS FROM THE COMPANY OR OTHER SHOEMAKERS THAT EXCEED THEIR INSTITUTIONAL SALARIES NIKE HOWEVER DOESN'T WISH TO DEBATE THE PROPRIETY OF THAT PRACTICE SOMETIMES WE NEGOTIATE FEES WITH INDIVIDUAL COACHES SOMETIMES WITH UNIVERSITY ATHLETIC DEPARTMENTS THE SCHOOLS CALL THE SHOTS ON THAT NOT US SAYS STAMM IT'S THEY THAT MUST DETERMINE WHAT'S FAIR COMPENSATION FOR THE PEOPLE WHO WORK FOR THEM THE IMPETUS FOR ANY CHANGES IN THE DISPOSITION OF ENDORSEMENT MONEY ALSO MUST COME FROM THEM MEANTIME BACK AT ST THOMAS AN NCAA DIVISION III SCHOOL THAT DOESN'T GIVE ATHLETIC SCHOLARSHIPS THE GREAT SHOE EXPERIMENT HASN'T PROCEEDED WITHOUT MERRIMENT THE WORD AROUND CAMPUS IS THAT REEBOK IS BEHIND THE WHOLE THING PAYING BOTH MEN TO SPORT ITS COMPETITOR'S PRODUCTS ALPER AVERS THAT NIKE ALREADY HAS GOT MORE THAN ITS SHOES' WORTH FROM THE PUBLICITY THE STUNT HAS GENERATED THE AQUIN THE UNIVERSITY'S STUDENT NEWSPAPER RAN A FRONTPAGE STORY ABOUT IT RIGHT UNDER A PIECE HEADLINED STUDENT SUSPENDED FOR EAR BITING WHAT'S GOING ON AT COLLEGES THESE DAYS ANYWAY AND IT'S BEEN FEATURED ON A LOCAL TELEVISION STATION'S EVENING NEWS PROGRAM I DIDN'T SEE THE TV BIT BECAUSE I HAVEN'T OWNED A SET SINCE 1958 BUT MY MOM SAW IT AND WAS VERY PLEASED HE SAYS RAYMOND NOTES THAT IN LIGHT OF THE BEFORE SURVEY OF THE CLASS IN WHICH HE'S WEARING HIS NIKES IT'LL BE DIFFICULT TO SHOW THAT HIS INFLUENCE OVER HIS STUDENTS HAS BEEN POSITIVE FOURTEEN OF THE 18 SAID THEY'D ALREADY BOUGHT AT LEAST ONE PAIR OF NIKES DURING THE PAST YEAR HE NOTES I DON'T KNOW HOW I COULD TOP THAT HE CONTINUES MAYBE WE PROFESSORS COULD DO LIKE THE FARMERS DO AND GET SHOE COMPANIES TO PAY US NOT TO WEAR THEIR SHOES BUT HE PAUSES AND ADDS I GUESS THAT WOULD BE BLACKMAIL WOULDN'T IT 9404010012 940401 BUSINESS BRIEF FIRST DATA CORP CHECK BUSINESS IS BOUGHT BY COMPANY FROM CITICORP FIRST DATA CORP SAID IT ACQUIRED THE OFFICIAL CHECK AND MONEY ORDER BUSINESS OF CITICORP WHICH WILL ROUGHLY DOUBLE THE SIZE OF FIRST DATA'S BUSINESS IN THAT AREA OFFICIAL CHECKS TYPICALLY INCLUDE TELLER'S CHECKS LOAN DISBURSEMENT CHECKS SAVINGS WITHDRAWAL CHECKS INTEREST AND DIVIDEND CHECKS FIRST DATA BASED IN HACKENSACK NJ WILL HANDLE BACKOFFICE PROCESSING OF THE CHECKS AND MONEY ORDERS FOR CITICORP WHICH HAD ALSO PROVIDED THE SERVICE FOR ALMOST 800 BANKS SAVINGS AND LOAN AND OTHER FINANCIAL INSTITUTIONS TERMS WEREN'T DISCLOSED FIRST DATA WITH 15 BILLION IN REVENUE IN 1993 PROVIDES HIGHVOLUME INFORMATION PROCESSING AND SERVICES FOR CREDIT CARDS FUND TRANSFERS TELESERVICES MUTUAL FUNDS CABLE TELEVISION AND OTHER INDUSTRIES 9404010011 940401 JAPANESE OWNER OF HOTEL BELAIR LOSES TITLE RESALE EFFORT IS EXPECTED SOON BY MITCHELL PACELLE AND PAULINE YOSHIHASHI STAFF REPORTERS OF THE WALL STREET JOURNAL THE LEGENDARY HOTEL BELAIR IN LOS ANGELES ACQUIRED BY A JAPANESE BUYER FOR A RECORD 12 MILLION PER ROOM IN 1989 IS EXPECTED TO BE BACK ON THE BLOCK SOON AND IS LIKELY TO FETCH CLOSER TO HALF THAT A HOLDING COMPANY SET UP BY LONGTERM CREDIT BANK OF JAPAN LTD LEAD LENDER ON THE PROPERTY HAS TAKEN BACK TITLE TO THE ROMANTIC 92ROOM HOTEL POTENTIAL BUYERS ARE ALREADY CIRCLING THE PROPERTY WHOSE LUSH LANDSCAPING AND PRIVATE BUNGALOWS HAVE MADE IT A FAVORITE HAUNT OF CELEBRITIES HOLLYWOOD POWER BROKERS AND ROYALTY MUSIC MOGUL DAVID GEFFEN AND LOS ANGELESBASED REALESTATE INVESTMENT FIRM COLONY CAPITAL INC HAVE APPROACHED THE BANK INDIRECTLY ABOUT BUYING IT BOTH MR GEFFEN AND COLONY HAVE SAID THEY ARE UNWILLING TO PAY MORE THAN 50 MILLION FOR THE PROPERTY ACCORDING TO INDIVIDUALS FAMILIAR WITH THEIR BIDS CONSIDERABLY LESS THAN THE 110 MILLION PAID BY THE PREVIOUS BUYER IT IS UNCLEAR WHETHER THE BANK WILL SEEK TO SELL THE PROPERTY IMMEDIATELY THE BELAIR IS JUST THE LATEST EXAMPLE OF THE HUGE LOSSES SUSTAINED BY JAPANESE BUYERS IN THEIR CELEBRATED PURCHASES OF US TROPHY PROPERTIES IN THE LATE 1980S WHICH INCLUDED THE PEBBLE BEACH GOLF RESORT AND A CONTROLLING INTEREST IN NEW YORK'S ROCKEFELLER CENTER PEBBLE BEACH WAS SOLD BY ITS JAPANESE BUYER IN 1992 AT A LOSS BELIEVED TO BE MORE THAN 340 MILLION AND THE APPRAISED VALUE OF ROCKEFELLER CENTER HAS DECLINED BELOW THE LEVEL OF DEBT ON THE PROPERTY THE SAZALE GROUP OF TOKYO PURCHASED THE BELAIR FROM OIL HEIRESS CAROLINE HUNT AT THE HEIGHT OF THE MARKET FOR MORE THAN DOUBLE WHAT SOME US ANALYSTS THOUGHT IT WOULD BRING IN A MARCH 16 DEED IN LIEU OF FORECLOSURE SAZALE RELINQUISHED OWNERSHIP TO HBA HOLDINGS CO AN ENTITY SET UP BY THE LENDER ACCORDING TO SOMEONE FAMILIAR WITH THE TRANSFER JAPANESE LENDERS TYPICALLY ARE RELUCTANT TO FORECLOSE ON PROPERTIES PREFERRING TO NEGOTIATE A TRANSFER OF TITLE OR SALE THE DOCUMENT SPEAKS FOR ITSELF SAID MICHAEL BRAUN A NEW YORK LAWYER WHO REPRESENTS SAZALE SAZALE HAS BEEN WORKING WITH LONGTERM CREDIT BANK AND THE OTHER BANKS IN RESTRUCTURING ITS OBLIGATIONS HE DECLINED TO ELABORATE ON THE DISCUSSIONS AN AFFILIATE OF THE WYNDAM HOTELS & RESORTS ARM OF DALLASBASED TRAMMELL CROW CO HAS BEEN SIGNED ON AS ASSET MANAGER OF THE BELAIR PERSONS CLOSE TO THE SITUATION SAID ERIC DANZIGER PRESIDENT OF THE COMPANY'S LUXURY HOTELS AND RESORTS DIVISION DECLINED TO COMMENT REFERRING INQUIRIES TO LONGTERM CREDIT BANK WHICH DIDN'T RETURN CALLS SEEKING COMMENT EARLIER A BANK SPOKESMAN IN TOKYO SAID NEGOTIATIONS WERE CONTINUING BUT REFUSED TO ELABORATE IN THE NEXT MONTH YOU'LL SEE THE HOTEL MARKETED IN A MORE ORDERLY WAY PREDICTED ONE POTENTIAL BUYER HOTEL EXPERTS CONSIDER IT UNLIKELY THAT ANY BUYER WOULD PAY CLOSE TO AS MUCH AS SAZALE DID HOTEL VALUES HAVE PLUMMETED TO ABOUT 45 TO 50 OF THEIR VALUES IN THE LATE 1980S SAID DONALD WISE A HOTEL BROKER FOR CB COMMERCIAL REAL ESTATE GROUP INC BUT EVEN AT THE TIME OF THE DEAL THE JAPANESE SAID IT WASN'T JUST A HOTEL SALE IT WAS A PIECE OF ART WITH CASH FLOW PART OF THE PROBLEM FOR THE SELLER IS THAT THE HOTEL WHERE ROOM RATES AVERAGE CLOSE TO 400 A DAY AND OCCUPANCY RUNS MORE THAN 85 PRESENTS POTENTIAL BUYERS WITH LITTLE OPPORTUNITY TO PUSH REVENUES HIGHER SEVERAL PEOPLE FAMILIAR WITH ITS FINANCES SAID AT THOSE LEVELS IT IS LIKELY TO GENERATE BETWEEN 35 MILLION AND 4 MILLION A YEAR IN OPERATING PROFIT IF YOU BOUGHT IT FOR 50 MILLION AND WERE LOOKING AT 35 MILLION OF ANNUAL INCOME YOU'D GET MAYBE A 6 RETURN ON YOUR DOLLAR SAID ONE POTENTIAL BUYER SO IT'S GOT TO BE ANOTHER TROPHY HUNTER AT THAT PRICE THE SULTAN OF BRUNEI WHO ALREADY OWNS THE HIGHEND BEVERLY HILLS HOTEL WHICH IS CURRENTLY CLOSED FOR RENOVATION IS ALSO SAID TO BE CONSIDERING A PURCHASE HE COULDN'T BE REACHED FOR COMMENT SALAZE RECENTLY SOLD ANOTHER OF ITS TROPHY PROPERTIES THE HOTEL BELAIR CAP FERRAT IN THE SOUTH OF FRANCE IT BOUGHT THE PROPERTY FROM FINANCIER SAUL STEINBERG FOR ABOUT 28 MILLION AND HAD INVESTED NEARLY 10 MILLION MORE INTO IT ACCORDING TO ONE UNSUCCESSFUL BIDDER SEVERAL MONTHS AGO A LEBANESE INVESTMENT GROUP BOUGHT IT FOR ABOUT 27 MILLION ACCORDING TO THAT BIDDER A SPOKESWOMAN FOR THE HOTEL CONFIRMED IT WAS SOLD BUT SAID THE MANAGER WAS UNAVAILABLE TO DISCUSS THE PRICE 9404010010 940401 EXTRADER ON DEBT OF EMERGING NATION PLEADS GUILTY TO FRAUD NEW YORK A FORMER BANK VICE PRESIDENT PLEADED GUILTY TO A FELONY IN CONNECTION WITH A TRADE IN THE LIGHTLY REGULATED MARKET FOR EMERGINGNATION DEBT IN STATE COURT HERE DANIEL YOUNG WHO WAS A VICE PRESIDENT OF THE FORMER MANUFACTURERS HANOVER TRUST CO SAID HE HAD MISAPPLIED BANK PROPERTY IN CONNECTION WITH THE BANK'S 1990 SALE OF ITS PORTION OF A COLOMBIAN DEBT ISSUE ACCORDING TO AN INDICTMENT LAST MAY MR YOUNG HAD A CONFLICT OF INTEREST HE AND OTHERS ALLEGEDLY HAD FORMED A COMPANY TO OWN THE DEBT THAT THE BANK SOLD ALTHOUGH THE BANK MADE MONEY ON THE TRADE IT WAS DEPRIVED OF THE OPPORTUNITY TO MAKE AN ADDITIONAL 1 MILLION WHEN THE VALUE OF THE DEBT LATER ROSE THE INDICTMENT SAID IN OBTAINING THE GUILTY PLEA PROSECUTORS DROPPED CONSPIRACY AND BRIBERELATED CHARGES THE OFFICE OF DISTRICT ATTORNEY ROBERT M MORGENTHAU SAID THE JUDGE HAS AGREED NOT TO IMPOSE ANY PRISON SENTENCE ON MR YOUNG IT SAID THE JUDGE LEFT OPEN THE AMOUNT OF A FINE AND OTHER CONDITIONS HE MAY IMPOSE MR YOUNG AGREED TO COOPERATE WITH A CONTINUING INVESTIGATION INTO TRADING OF EMERGINGNATIONS DEBT A TRIAL IS EXPECTED TO BEGIN MONDAY FOR GEORGE LIBERATORE A FORMER PRINCIPAL OF A DEBTTRADING FIRM NAMED DLF INC WHO WAS INDICTED ALONG WITH MR YOUNG MR LIBERATORE'S ATTORNEY WAS UNAVAILABLE FOR COMMENT MR YOUNG'S ATTORNEY JAMES J MCGUIRE SAID MR YOUNG'S COOPERATION WITH THE DISTRICT ATTORNEY DOESN'T MEAN THAT HE WILL BE IMPLICATING MR LIBERATORE OR ANYBODY ELSE MANUFACTURERS HANOVER AS SUCH NO LONGER EXISTS A SPOKESMAN FOR CHEMICAL BANKING CORP PARENT OF THE BANK INTO WHICH MANUFACTURERS HANOVER HAS BEEN MERGED DECLINED TO COMMENT ON MR YOUNG'S PLEA 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 9404010009 940401 COMMODITIES CORN PRICES ARE LIKELY TO RISE IN WAKE OF REPORT THAT FARMERS PLAN TO PLANT LESS THAN EXPECTED BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US CORN PRICES ARE EXPECTED TO RISE IN THE WAKE OF A GOVERNMENT SURVEY SHOWING THAT FARMERS INTEND TO PLANT FEWER ACRES OF CORN THAN FORECAST BY TRADERS THE AGRICULTURE DEPARTMENT SAID A MARCH 1 SURVEY SHOWED THAT CORN FARMERS INTEND TO PLANT 786 MILLION ACRES THIS SPRING COMPARED WITH THE 80 MILLION ACRES THAT MOST TRADERS EXPECTED THE GOVERNMENT TO REPORT THE REPORT SUGGESTS THAT WITH NORMAL WEATHER THIS YEAR AND AVERAGE YIELDS THE US COULD HARVEST ROUGHLY 86 BILLION BUSHELS THIS AUTUMN INSTEAD OF THE 88 BILLION BUSHELS TRADERS HAD ORIGINALLY FORECAST CORN PRICES ARE PARTICULARLY SENSITIVE TO HARVEST FORECASTS THIS YEAR BECAUSE GRAIN STOCKPILES ARE TIGHT IN THE WAKE OF THE FLOODRELATED CROP DISASTER IN THE MIDWEST LAST YEAR US CORN FARMERS HARVESTED 634 BILLION BUSHELS LAST AUTUMN IN ANOTHER REPORT RELEASED YESTERDAY THE AGRICULTURE DEPARTMENT SAID THE US HAD A CORN SUPPLY OF ABOUT FOUR BILLION BUSHELS ON MARCH 1 DOWN 30 FROM 568 BILLION BUSHELS ON THE SAME 1993 DATE THIS IS THE SUPPLY AVAILABLE FOR FOOD COMPANIES LIVESTOCK PRODUCERS AND EXPORTERS UNTIL THE AUTUMN HARVEST THE GOVERNMENT REPORT WAS RELEASED AFTER THE CLOSE OF TRADING YESTERDAY GRAIN PRICES PLUNGED AHEAD OF THE REPORT AMID PROFITTAKING BY COMMODITY FUNDS AS WELL AS RENEWED JITTERS ABOUT THE PROSPECTS FOR A TRADE WAR WITH JAPAN WHICH IS ON A PACE TO BE THE BIGGEST BUYER OF US CORN WHEAT AND SOYBEANS THIS YEAR IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR JULY DELIVERY DROPPED 725 CENTS A BUSHEL TO SETTLE AT 27975 A BUSHEL THE GRAIN FUTURES MARKETS AT THE CHICAGO BOARD OF TRADE ARE CLOSED TODAY FOR GOOD FRIDAY TRADING RESUMES MONDAY THE AGRICULTURE DEPARTMENT SAID THAT FARMERS INTEND TO PLANT 611 MILLION ACRES OF SOYBEANS THIS SPRING WHICH IS 12 MILLION ACRES MORE THAN ANTICIPATED BY GRAIN TRADERS ASSUMING NORMAL YIELDS THE PLANTING INTENTIONS REPORT SIGNALS AN AUTUMN HARVEST OF 216 BILLION BUSHELS THE GOVERNMENT ESTIMATED THAT US FARMERS ARE PLANTING 715 MILLION ACRES OF ALL VARIETIES OF WHEAT COMPARED WITH 722 MILLION ACRES LAST YEAR THE GOVERNMENT SAID THE US WHEAT SUPPLY WAS 102 BILLION BUSHELS ON MARCH 1 DOWN 3 FROM THE SAME 1993 DATE TRADERS SAID THE STOCKPILE REPORT INDICATES THAT THE TIGHT SUPPLY OF CORN IN MANY PARTS OF THE MIDWEST IS FORCING SOME CATTLE PRODUCERS TO FEED THEIR LIVESTOCK MORE WHEAT AS A SUBSTITUTE IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS PRECIOUSMETALS PRICES SOARED ON POLITICAL INSTABILITY IN SOUTH AFRICA AND SHARP DECLINES IN BOND AND STOCK PRICES ANALYSTS SAID AT THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JULY DELIVERY SET THE TONE FOR THE DAY RISING 1190 TO SETTLE AT 42690 AN OUNCE AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR JUNE DELIVERY WAS UP 570 TO 39430 AN OUNCE AND THE ACTIVELY TRADED MAY SILVER FUTURES CONTRACT ROSE 145 CENTS TO 5785 AN OUNCE LARRY STRAUSS ANALYST FOR MERRILL LYNCH SAID THE SOUTH AFRICAN PRESIDENT'S DECLARATION OF A STATE OF EMERGENCY IN THE COUNTRY WHICH IS A HUGE PRODUCER OF PRECIOUS METALS CREATED CONCERNS THAT OUTPUT THERE MAY DECLINE IN ADDITION MR STRAUSS SAID INCREASES IN THE EMPLOYMENT AND PRICE INDEXES IN YESTERDAY'S CHICAGO PURCHASING MANAGERS' REPORT PUSHED BOND AND STOCK PRICES DOWN SHARPLY CREATING A FLOOD OF SAFE HAVEN BUYING OF PRECIOUS METALS ENERGY CRUDE OIL AND PRODUCT FUTURES PRICES SETTLED SHARPLY HIGHER YESTERDAY AFTER NEWS OF COMING MAINTENANCE AT A LOUISIANA REFINERY JOLTED THE MARKET FROM THE NARROW RANGE IN WHICH IT HAD BEEN TRADING NEWS OF A TWOWEEK MAINTENANCE PROGRAM TO BEGIN AT A PORTION OF MOBIL CORP'S HUGE REFINERY AT CHALMETTE LA ON APRIL 9 SPARKED PURCHASES OF PRODUCT CONTRACTS THE ONSET OF MAINTENANCE WILL CLOSE DOWN SOME PRODUCTION AT THE REFINERY THAT ENTHUSIASM SPILLED INTO THE CRUDE MARKET TRADERS SAID PRODUCT PRICES HAD MADE ONLY MODEST ADVANCES BEFORE THE BUYING SPREE STARTED THE MARKET HOWEVER WAS THINLY TRADED WITH MUCH OF THE BUSINESS TRANSACTED EARLY IN THE DAY BECAUSE OF A US HOLIDAY TODAY 9404010008 940401 PRICE WILL REOPEN TWO LARGEST FUNDS NEW YORK MICHAEL PRICE A STAR MONEY MANAGER ON WEDNESDAY WILL REOPEN HIS TWO LARGEST FUNDS MUTUAL SHARES AND MUTUAL QUALIFIED BOTH CLOSED TO NEW INVESTORS SINCE JUNE 1989 THEY LET SOME AIR OUT OF THE BALLOON IN THE MARKET AND THERE ARE A LOT OF BUYING OPPORTUNITIES OUT THERE MR PRICE SAID THE MARKET IS DOWN 10 BUT THERE ARE PLENTY OF STOCKS DOWN 30 MR PRICE WANTS NEW CASH TO INVEST IN WHAT HE SEES AS GOOD BUYS IN MERGER CANDIDATES BANKS PHARMACEUTICALS AND AILING COMPANIES HE SAYS STOCKS COULD FALL 5 MORE BEFORE LEVELING OUT BUT OVERALL I FEEL REALLY GOOD ABOUT THE MARKET BECAUSE THE ECONOMY IS DOING BETTER MR PRICE IS A VALUE INVESTOR WHO LIKES TO BUY SECURITIES THAT ARE INEXPENSIVE AMID THIS WEEK'S STOCK MARKET TUMBLE HE WAS SNATCHING UP SHARES MUTUAL QUALIFIED HAS A 10 CASH HOLDING DOWN FIVE PERCENTAGE POINTS IN THREE DAYS MUTUAL SHARES IS 12 IN CASH MR PRICE SAYS HE RECENTLY BOUGHT SOME SCHERINGPLOUGH SEARS ROEBUCK AND JP MORGAN HE SCOFFS AT THE NOTION HE IS RAISING MONEY TO HELP PAY DEPARTING SHAREHOLDERS YESTERDAY WAS THE FIRST DAY WE HAD SOME NET REDEMPTIONS IN MANY MANY MOONS HE SAYS AND I HAVE 800 MILLION IN CASH MUTUAL SHARES HAS ASSETS OF 34 BILLION WITH A NEGATIVE RETURN OF 24 YEARTODATE FOR THE PAST 12 MONTHS ENDED WEDNESDAY THE FUND IS UP 994 MUTUAL QUALIFIED WITH ASSETS OF 15 BILLION IS DOWN ABOUT 11 SINCE YEAR END BUT UP 1293 FOR THE 12 MONTHS ROBERT MARKMAN OF MARKMAN CAPITAL MANAGEMENT IN MINNEAPOLIS SAID THE REOPENING PLAN IS THE BEST NEWS I'VE HAD ALL DAY PRICE IS SAYING THERE IS NOW VALUE IN THE MARKET 9404010007 940401 POLITICS & POLICY CLINTON ECHOES A FAMILIAR LAMENT GOOD HELP IS HARD TO FIND ESPECIALLY AMONG FRIENDS BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MY GOD THIS IS A HELLUVA JOB THE PRESIDENT ROARED TO A FRIENDLY JOURNALIST I HAVE NO TROUBLE WITH MY ENEMIES BUT MY DAMN FRIENDS THEY'RE THE ONES THAT KEEP ME WALKING THE FLOOR AT NIGHT THE PRESIDENT WAS REPUBLICAN WARREN G HARDING ENMESHED IN WHAT CAME TO BE KNOWN AS THE TEAPOT DOME OILRESERVES SCANDAL EARLY IN 1923 BUT THE SENTIMENTS ARE AS UPTODATE AS THE WHITEWATER DEVELOPMENT CO OVER AND OVER AGAIN PRESIDENTS GET INTO TROUBLE BECAUSE OF THE ACTIONS OF THEIR CLOSEST ASSOCIATES WITHIN THE GOVERNMENT NOT FROM EVIL FORCES OUTSIDE IT HAPPENED TO POOR HARDING HE DIED IN OFFICE BROKEN BY THE SCANDALOUS BEHAVIOR OF ASSOCIATES HE TRUSTED NIXON WAS BETRAYED BY HIS OWN PEOPLE IN WATERGATE SAYS JAMES PFIFFNER A POLITICAL SCIENTIST AT GEORGE MASON UNIVERSITY AND A SPECIALIST IN WHITE HOUSE STAFFING REAGAN WAS BETRAYED BY HIS OWN GUNGHO ZEALOTS IN IRANCONTRA NOW OLDTIMERS WHO HAVE SERVED IN EARLIER WHITE HOUSES AND ACADEMICIANS WHO STUDY THE PRESIDENCY WORRY THAT ONCE AGAIN A CHIEF EXECUTIVE IS BEING POORLY SERVED BY HIS OWN PEOPLE IT'S THE SAME OLD THING IN WHITEWATER SAYS MR PFIFFNER AND THE STAFF PROBLEM THIS TIME SEEMS WORSE THAN A LOT OF THOSE THAT GAVE MR CLINTON'S PREDECESSORS HEADACHES WHAT WE'RE SEEING HERE IS NOT JUST A BAD WHITE HOUSE STAFF SAYS HORACE BUSBY A SPECIAL ASSISTANT TO AND SPEECH WRITER FOR LYNDON JOHNSON I SUSPECT THIS WOULDN'T EVEN QUALIFY AS A GOOD STAFF IN LITTLE ROCK YOU CAN SEE EVIDENCE EVERY DAY IN THIS WHITE HOUSE OF THE PROBLEMS POOR STAFFING LEADS TO SAYS FRED GREENSTEIN A PRESIDENTIAL HISTORIAN AT PRINCETON UNIVERSITY THIS IS A VERY LOOSELY ORGANIZED PRESIDENCY TO SAY THE LEAST OF COURSE IT'S ALMOST ALWAYS AT LEAST PARTLY THE PRESIDENT'S FAULT HE'S THE ONE AFTER ALL WHO GAVE THESE PEOPLE THEIR JOBS IN THE FIRST PLACE MR CLINTON HAS ACCEPTED THE RESIGNATION OF HIS WHITE HOUSE COUNSEL BERNARD NUSSBAUM AND WATCHED AS A TRUSTED FRIEND WEBSTER HUBBELL THE NO 3 OFFICEHOLDER AT THE JUSTICE DEPARTMENT RETURNED TO ARKANSAS TO CONTEST ALLEGATIONS THAT HE OVERBILLED CLIENTS AT HIS AND HILLARY RODHAM CLINTON'S OLD LAW FIRM IN LITTLE ROCK ARK AND NOW ANOTHER WHITE HOUSE LAWYER WILLIAM KENNEDY III IS IN TROUBLE HE WAS STRIPPED THE OTHER DAY OF MOST OF HIS DUTIES BECAUSE OF SUGGESTIONS HE HAD CONCEALED INFORMATION ABOUT PAYING SOCIAL SECURITY TAXES FOR A NANNY IN 1991 VINCENT FOSTER ANOTHER PARTNER IN THE ROSE LAW FIRM IN LITTLE ROCK SERVING IN THE WHITE HOUSE AS DEPUTY COUNSEL COMMITTED SUICIDE A SPECIAL COUNSEL ROBERT FISKE HAS BEGUN AN INQUIRY NOT ONLY ABOUT THE TANGLED FINANCIAL AFFAIRS OF MR CLINTON AND THE FIRST LADY BUT ABOUT THE ROLE OF THE FIRST COUPLE'S WHITE HOUSE ASSOCIATES IN TRYING TO GUARD THEM FROM POSSIBLE DAMAGE IN A HUMBLING EXERCISE LOYAL WHITE HOUSE STAFFERS HAVE BEEN CALLED ONE AFTER ANOTHER TO TESTIFY BEFORE A GRAND JURY THERE IS NOTHING MORE DELICATE IN ANY MODERN PRESIDENCY THAN THE STAFFING OF THE WHITE HOUSE AND THE ESTABLISHING OF A CHAIN OF COMMAND TO BRING MATTERS OF IMPORTANCE TO THAT DESK IN THE OVAL OFFICE WHERE THE BUCK INDEED DOES FINALLY STOP INCREDIBLY DURING THE TRANSITION BILL CLINTON A RANK OUTSIDER WITH NO WASHINGTON EXPERIENCE GAVE LITTLE THOUGHT TO EITHER THE TRANSITION TEAM DOGGEDLY RESEARCHED THE PROBLEMS FACING THE CABINET DEPARTMENTS AND ALL THE FEDERAL AGENCIES FROM ACTION TO THE VOICE OF AMERICA BUT IT NEGLECTED THE WHITE HOUSE ITSELF MR CLINTON IN AN INTERVIEW IN THE LOS ANGELES TIMES LAST SUMMER ACKNOWLEDGED THAT HE PROBABLY MADE A MISTAKE IN PUTTING ALL OF HIS EXPERIENCED PEOPLE IN THE CABINET THE RESULT HE SAID WAS THAT THE WHITE HOUSE STAFF SUBSTANTIVELY HAD VERY LITTLE WASHINGTON EXPERIENCE WHAT'S HAPPENING NOW IS PARTLY A RESULT OF THAT MISCALCULATION THE WHITE HOUSE STAFF IS THE KEY TO EVERY PRESIDENCY SAYS FORMER SEN HOWARD BAKER WHO SERVED AS PRESIDENT REAGAN'S CHIEF OF STAFF IN 1987 AND 1988 FOLLOWING THE IRANCONTRA SCANDAL YOU CAN'T GET ANYWHERE WITHOUT A STRONG STAFF MADE UP OF QUALITY PEOPLE IT DIDN'T HELP THAT THE SUPERCHARGED CLINTONIANS MANY OF THEM AGGRESSIVELY SELFCONFIDENT WENT OUT OF THEIR WAY TO MAKE SURE THAT NO ONE WHO HAD WORKED FOR JIMMY CARTER GOT A MAJOR JOB AT THE WHITE HOUSE AND SO THE KIDS THE YOUNG PEOPLE WHO WORKED IN THE CAMPAIGN AND THE OLD PALS FROM ARKANSAS CAME FLOODING INTO THE WHITE HOUSE AND THE EXECUTIVE OFFICE BUILDING IN MUCH THE SAME WAY AS THE BEAVER PATROL SHOWED UP TO WORK FOR RICHARD NIXON MR CLINTON CAPPED THIS AGE OF INNOCENCE BY CHOOSING AS HIS CHIEF OF STAFF THOMAS MACK MCLARTY WHOSE PREVIOUS POLITICAL EXPERIENCE WAS LIMITED TO A SINGLE TERM IN THE LOWER HOUSE OF THE ARKANSAS LEGISLATURE I DON'T THINK SAYS MR GREENSTEIN THAT BILL CLINTON HAS EVER UNDERSTOOD WHAT STAFFS ARE FOR TO MAKE UP FOR HIS LAPSES MR CLINTON FINALLY FELT THE NEED TO HIRE A MUCHTRAVELED REPUBLICAN DAVID GERGEN TO TRY TO BRING SOME COHERENCE TO THE WHITE HOUSE MESSAGE AND A GRIZZLED DEMOCRATIC LEGEND LYNN CUTLER TO ADD CREDIBILITY TO THE COUNSEL'S OFFICE BUT HE HAS NEVER SERIOUSLY DEALT WITH THE QUESTION OF LINES OF AUTHORITY ORGANIZATION REALLY DOES MATTER IN THE MODERN PRESIDENCY AND NOTHING MATTERS MORE THAN PICKING A SMART SHREWD TOUGH CHIEF OF STAFF MANY EXPERTS ATTRIBUTE PRESIDENT REAGAN'S EARLY SUCCESS TO HIS DECISION TO HIRE JAMES BAKER SOMEONE HE BARELY KNEW AS HIS CHIEF OF STAFF IT WAS A BRILLIANT STROKE SAYS MR PFIFFNER GERALD FORD AFTER A ROCKY START HIRED AN OLD FRIEND DONALD RUMSFELD AS HIS CHIEF OF STAFF AND HE WAS FOLLOWED BY RICHARD CHENEY BY THE END OF HIS TIME IN OFFICE SAYS MR GREENSTEIN FORD WAS RUNNING A PRETTY GOOD WHITE HOUSE THE SAME SORT OF THING HAPPENED WITH JIMMY CARTER WHEN JACK WATSON SETTLED IN AS CHIEF OF STAFF SUCCEEDING HAMILTON JORDAN THINGS BEGAN TO MOVE A LITTLE MORE SMOOTHLY BUT GETTING THE RIGHT KIND OF CHIEF OF STAFF IS A TICKLISH BUSINESS IN MODERN PRESIDENTIAL HISTORY FOUR CHIEFS OF STAFF HAVE BEEN FORCED TO RESIGN IN VARYING DEGREES OF DISGRACE SHERMAN ADAMS FOR PRESIDENT EISENHOWER HR HALDEMAN FOR PRESIDENT NIXON DON REGAN SUCCESSOR TO JIM BAKER FOR PRESIDENT REAGAN AND JOHN SUNUNU FOR PRESIDENT BUSH WITH THE EXCEPTION OF MR ADAMS HE WAS FORCED TO RESIGN BECAUSE HE ACCEPTED A VICUNA COAT THE PROBLEM SEEMS TO HAVE BEEN THAT THEY BECAME TOO DOMINEERING AFTER ALL MR HALDEMAN WITH HIS SIDEKICK JOHN EHRLICHMAN EARNED THE NICKNAME THE BERLIN WALL MR CLINTON DOESN'T HAVE THIS KIND OF PROBLEM THERE'S NOTHING TO INDICATE THAT MR CLINTON GAVE MUCH THOUGHT TO PICKING HIS CHIEF OF STAFF EVEN THOUGH THE APPOINTMENT WOULD MEAN SO MUCH TO HIS PRESIDENCY WASHINGTON IS FILLED WITH VETERANS OF THIS LINE OF WORK THEY START WITH 79YEAROLD GEN ANDREW GOODPASTER HE SERVED IKE AS A STAFF SECRETARY AND HE CAN RECALL WITH EXTRAORDINARY CLARITY JUST HOW THAT HIGHLY EFFICIENT WHITE HOUSE WORKED I WOULDN'T KNOW HOW TO RUN THE WHITE HOUSE WITHOUT A STRICT LINE OF AUTHORITY HE SAYS BY ALL ACCOUNTS THE TROUBLE WITH MR MCLARTY IS THAT HE ISN'T DOMINEERING ENOUGH HE'S NOT REALLY A CHIEF OF STAFF AT ALL SAYS MR GREENSTEIN HE DOESN'T HAVE THAT KIND OF POWER IN THIS WHITE HOUSE THERE ARE NO CLEAR LINES OF AUTHORITY HE SEEMS TO BE A NICE GRACIOUS GUY SAYS MR PFIFFNER BUT BEING BILL CLINTON'S CHIEF OF STAFF MUST BE AN AWFULLY TOUGH JOB HE'S GOT THREE POWER CENTERS TO DEAL WITH CLINTON MRS CLINTON AND VICE PRESIDENT AL GORE IT'S A TOUGH WHITE HOUSE TO IMPOSE ORDER ON 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 9404010006 940401 SUN MICROSYSTEMS' REVENUE FALLS SHORT OF ANALYSTS' TARGET MOUNTAIN VIEW CALIF SUN MICROSYSTEMS INC SAID A SLUMP IN WORKSTATION ORDERS AND SELECTIVE DISCOUNTING RESULTED IN A 3 TO 6 INCREASE IN THIRDQUARTER REVENUE COMPARED WITH THE 10 GAIN ANALYSTS HAD EXPECTED CUSTOMERS WHO WOULD HAVE PURCHASED WORKSTATIONS DURING THE THIRD QUARTER ENDED SUNDAY HELD OFF UNTIL THIS WEEK'S INTRODUCTION OF SUN'S NEW LINE OF FASTER CHEAPER WORKSTATIONS SUN SAID TO KEEP THE OLD LINE MOVING SUN OFFERED DISCOUNTS TO SOME CUSTOMERS CHIEF FINANCIAL OFFICER MICHAEL E LEHMAN SAID REVENUE FOR THE PERIOD ENDED SUNDAY WAS BETWEEN 117 BILLION AND 120 BILLION COMPARED WITH 114 BILLION A YEAR EARLIER SUN SAID ANALYSTS HAD EXPECTED REVENUE OF 125 BILLION OR MORE THE NEWS CAME AFTER THE CLOSE YESTERDAY IN NASDAQ STOCK MARKET TRADING SUN CLOSED AT 27375 UP 50 CENTS SUN DECLINED TO GIVE GUIDANCE AS TO PROFIT OR GROSS MARGINS WHICH WILL BE REPORTED APRIL 12 IN THE YEAREARLIER QUARTER NET WAS 517 MILLION OR 41 CENTS A SHARE GROSS MARGINS WERE 45 BUT IN AN INTERVIEW MR LEHMAN INDICATED THAT GROSS MARGINS WILL BE HIGHER THAN IN THE YEAREARLIER PERIOD BECAUSE SUN GAVE ITS SALES FORCE SPECIAL INCENTIVES TO SELL ITS HIGHEND SERVERS WHICH STORE AND DISTRIBUTE INFORMATION FOR GROUPS OF WORKSTATIONS SERVERS HAVE MARGINS OF ROUGHLY 50 COMPARED WITH LESS THAN 40 FOR WORKSTATIONS ANALYSTS ESTIMATE WE DEFINITELY HAD A BETTER FOCUS ON PROFITABILITY MR LEHMAN SAID BECAUSE OF INCREASED SALES OF SERVERS AND OTHER PRODUCTS SUN'S OVERALL UNIT SHIPMENTS INCREASED 3 IN THE QUARTER MARKING THE FIRST INCREASE SINCE LAST YEAR'S FOURTH QUARTER 9404010005 940401 TECHNOLOGY & SCIENCE RATE OF INCREASE OF NEW AIDS CASES CONTINUES TO SLOW BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL THE RATE OF INCREASE IN NEWLY DIAGNOSED AIDS CASES CONTINUED TO SLOW IN 1993 ACCORDING TO THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA THE DECELERATION CAME DESPITE AN EXPANDED DEFINITION OF THE DISEASE WHICH WAS FORMERLY TIED TO A LIMITED NUMBER OF SECONDARY INFECTIONS SUCH AS PNEUMONIA AND CANCER NOW ANYONE INFECTED WITH THE AIDS VIRUS WHOSE IMMUNE CELLS HAVE DROPPED TO ABOUT ONEFIFTH OF THE NORMAL LEVEL IS CLASSIFIED AS HAVING AIDS THE 1993 DATA RELEASED YESTERDAY ARE STILL INCOMPLETE BECAUSE SOME DOCTORS HAVE YET TO REPORT CASES DIAGNOSED IN 1993 HOWEVER CDC EXPERTS EXPECT THAT THERE WILL BE AN INCREASE OF LESS THAN 10 OVER CASES DIAGNOSED IN 1992 THE NUMBER OF NEW CASES OF AIDS DIAGNOSED IN 1993 SO FAR TOTALS 46180 THE CDC SAID 67306 NEW CASES OF AIDS WERE DIAGNOSED IN 1992 UP 22 FROM THE 54778 AIDS CASES DIAGNOSED IN 1991 WHEN THERE WAS A 19 INCREASE OVER 1990 JOHN WARD CHIEF OF AIDS SURVEILLANCE AT THE CDC STRESSED THAT THE 46180 CASES IN 1993 SHOULDN'T BE SEEN AS A 31 DECLINE FROM 1992 BECAUSE OF THE LAG IN REPORTING FORTUNATELY THE RATE HAS SLOWED FROM ITS RAPID INCREASE IN THE EARLIER YEARS OF THE EPIDEMIC SAID DR WARD IT'S APROACHING A LEVEL WHERE MAYBE WE'LL BE REACHING A PLATEAU IT'S ANYONE'S GUESS DR WARD HASTENED TO ADD HOW LONG THE PLATEAU COULD LAST DR WARD CREDITED PREVENTION PROGRAMS FOR REDUCING RISKY BEHAVIOR IN VULNERABLE POPULATIONS THE CDC LONG HAS ESTIMATED THAT ONE MILLION AMERICANS ARE INFECTED WITH HIV THE VIRUS THAT CAUSES AIDS BUT EVEN THAT FIGURE IS BEING REEVALUATED A SPOKESMAN SAID 9404010004 940401 SUPPLIERS TOLD TO HOLD ORDERS FOR WOOLWORTH RETAILER'S ACCOUNTING PROBE PROMPTS MOVE BY SOME CREDIT FACTORING FIRMS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOME FACTORING COMPANIES AND CREDIT AGENCIES HAVE TOLD WOOLWORTH CORP SUPPLIERS TO HOLD THEIR SHIPMENTS UNTIL THE RETAILER REVEALS MORE INFORMATION ABOUT ITS INTERNAL INVESTIGATION OF ALLEGED ACCOUNTING IRREGULARITIES JITTERS AMONG FACTORS COMPANIES WHICH GUARANTEE THAT SUPPLIERS WILL BE PAID FOR SHIPMENTS TO RETAILERS COULD HAMPER WOOLWORTH'S ABILITY TO RECEIVE MERCHANDISE IN SOME OF ITS STORES INCLUDING ITS NORTHERN REFLECTIONS WOMEN'SAPPAREL CHAIN AND ITS CHAMPS SPORTS SPORTINGGOODS AND APPAREL STORES BECAUSE WOOLWORTH OPERATES STORES WORLDWIDE AND HAS SOME SUPPLIERS THAT SHIP DIRECTLY TO ITS STORES WITHOUT USING FACTORS ANALYSTS EXPECT THAT THE RETAILER WILL HAVE ENOUGH INVENTORY AT LEAST IN THE SHORT TERM INVESTORS ALSO EXPRESSED CONCERN ABOUT THE INVESTIGATION SENDING WOOLWORTH SHARES DOWN 1875 OR 11 TO CLOSE AT 15125 ITS SECOND CONSECUTIVE 52WEEK LOW IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING WOOLWORTH SAID WEDNESDAY THAT IT NAMED A SPECIAL COMMITTEE OF OUTSIDE DIRECTORS TO INVESTIGATE ALLEGATIONS OF ACCOUNTING IRREGULARITIES INCLUDING PROCEDURES THAT WOOLWORTH SAID WILL CAUSE IT TO RESTATE INTERIM FINANCIAL RESULTS FOR AT LEAST ONE OF ITS PAST TWO FISCAL YEARS THE ANNOUNCEMENT CAME AS A SURPRISE BOTH IN THE INDUSTRY AND ON WALL STREET WOOLWORTH DOESN'T HAVE A HISTORY OF BEING A CREDIT RISK TO SUPPLIERS AND ITS MANAGEMENT HAS BEEN CONSIDERED AMONG THE MOST STABLE IN THE RETAILING INDUSTRY THE APPOINTMENT OF THE SPECIAL COMMITTEE WHICH HIRED AN OUTSIDE LAW FIRM AND ACCOUNTANT TO ASSIST IN THE INVESTIGATION SPURRED SEVERAL FACTORS AND CREDIT AGENCIES TO CAUTION SUPPLIERS STANLEY TANANBAUM CHAIRMAN OF CENTURY BUSINESS CREDIT CORP A NEW YORKBASED FACTOR SAID WE'VE TOLD CLIENTS TO HOLD UNTIL WE GET MORE NEWS WITH A LAWYER AND ACCOUNTANT CALLED IN WE HAVE TO BE CONCERNED VINCENT CREO OF SOLO CREDIT SERVICE CORP SAID HE ALSO IS ADVISING CLIENTS TO HOLD THEIR ORDERS UNTIL THINGS ARE CLEARED UP A WOOLWORTH SPOKESWOMAN DECLINED COMMENT ON THE STATEMENTS FROM FACTORS AND CREDIT AGENCIES SAYING ONLY THAT THE COMPANY'S PAYMENT SCHEDULE TO VENDORS HAS NOT BEEN CHANGED SHE ALSO REITERATED WOOLWORTH'S STANCE THAT IT WON'T COMMENT ON THE INVESTIGATION THE COMPANY EARLIER SAID THAT ANY RESTATEMENTS AREN'T EXPECTED TO HAVE AN IMPACT ON FULLYEAR RESULTS BUT WILL REFLECT THE CORRECTION OF GROSS MARGINS WHICH IS THE DIFFERENCE BETWEEN WHAT THE RETAILER SOLD MERCHANDISE FOR AND WHAT IT ACTUALLY PAID FOR IT WOOLWORTH WHICH HAS ANNUAL REVENUE OF MORE THAN 96 BILLION AND OPERATES VARIETY AND SPECIALTY STORES SUCH AS FOOT LOCKER HAS BEEN ATTEMPTING TO TRIM UNPROFITABLE STORES FROM ITS ROSTER OF MORE THAN 40 RETAILING FORMATS BUT IT HAS BEEN HURT BY SLOW SALES ESPECIALLY AT ITS ONCEFASTGROWING FOOT LOCKER CHAIN WHICH HAS SUFFERED AS ATHLETIC FOOTWEAR HAS FALLEN OUT OF FAVOR WITH SOME TEENAGE BUYERS IN THE FOURTH QUARTER ENDED JAN 29 WOOLWORTH REPORTED AN OPERATING LOSS OF 21 MILLION COMPARED WITH A YEAREARLIER OPERATING PROFIT OF 286 MILLION THE COMMENTS FROM FACTORS AND CREDIT AGENCIES HEIGHTENED CONCERNS AMONG ANALYSTS ALL OF THIS POTENTIALLY JEOPARDIZES OR IMPEDES WOOLWORTH'S RELATIONSHIP WITH CREDITORS SUPPLIERS AND ULTIMATELY MAYBE EVEN ITS CUSTOMERS SAID JANET MANGANO A RETAIL ANALYST WITH BURNHAM SECURITIES INC MS MANGANO LIKE OTHER ANALYSTS BELIEVES THAT WOOLWORTH IS INVESTIGATING IRREGULARITIES RELATED TO MISCALCULATIONS OF STORE INVENTORY AFTER SEVERAL MONTHS DURING WHICH IT CLOSED DOWN HUNDREDS OF ITS OLDLINE VARIETY STORES AND KINNEY SHOE STORES AND SOLD OFF ITS DISCOUNT WOOLCO STORES IN CANADA TO WALMART STORES INC THEY HAVE BEEN DISCOUNTING MERCHANDISE HEAVILY TO MOVE THE MERCHANDISE OUT OF THE STORES THEY ARE LIQUIDATING SHE SAID I THINK THEIR PROBLEM IS RELATED TO PROPER INVENTORY VALUATIONS PRICE WATERHOUSE IS WOOLWORTH'S OUTSIDE AUDITOR WHICH REVIEWS THE RETAILER'S YEAREND FINANCIAL RESULTS PRICE WATERHOUSE DOESN'T REVIEW INTERIM FINANCIAL RESULTS WHICH TYPICALLY ARE UNAUDITED AND PREPARED INTERNALLY AND WHICH ARE THE FIGURES WOOLWORTH MAY END UP RESTATING PETER HOROWITZ A PRICE WATERHOUSE SPOKESMAN SAID THAT REGARDLESS OF WHAT'S GOING ON NO ONE IS QUESTIONING THE AUDITED FINANCIAL STATEMENTS PREPARED BY PRICE WATERHOUSE HE ADDED THAT THE ACCOUNTING FIRM WAS FULLY SUPPORTING THE INVESTIGATION AND THAT WHILE THE AUDIT OF RESULTS FOR THE YEAR ENDED JAN 31 ISN'T COMPLETED MANAGEMENT HAS STATED THAT IT DOES NOT EXPECT THE RESTATEMENT OF UNAUDITED INTERIM FINANCIAL RESULTS TO IMPACT THE FULLYEAR RESULTS HOWEVER ANALYSTS AND FACTORS ARE WORRIED PARTLY BECAUSE OF THEIR RECENT EXPERIENCE WITH LESLIE FAY COS WHICH LAST YEAR DISCOVERED AN INTERNAL ACCOUNTING FRAUD LESLIE FAY AN APPAREL MAKER SAID IN EARLY 1993 IT WAS INVESTIGATING ALLEGED ACCOUNTING IRREGULARITIES THE FRAUD LED TO THE COMPANY FILING FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE BANKRUPTCY CODE MR TANANBAUM'S CENTURY BUSINESS CREDIT WORKS HEAVILY WITH APPAREL MAKERS WHO SHIP TO WOOLWORTHOWNED STORES WE EXTEND CREDIT ON WOOLWORTH WE ARE IN THERE FAIRLY HEAVILY HE SAID THEY HAVE BEEN LOSING A LOT OF MONEY HE NOTED ADDING THAT HIS CONCERN IS THAT IT DOESN'T BECOME A LESLIE FAY SITUATION RICHARD POSNER EXECUTIVE VICE PRESIDENT OF CREDIT EXCHANGE INC A CREDIT MONITORING AGENCY ADDED WE'VE HAD A FAIR AMOUNT OF CALLS FROM THE FIRST OF YEAR ABOUT SHIPPING TO WOOLWORTH THIS MAY BE NOTHING AT ALL OR THIS COULD BE VERY SERIOUS 9404010003 940401 LETTERS TO THE EDITOR THEY ARE THE WORLD YOUR FEB 25 PAGEONE ARTICLE THE NEW PREPPIES ON BOARDING SCHOOLS HOSTING FOREIGN STUDENTS RIGHTFULLY POINTED OUT THE POTENTIAL PITFALLS AND MISUSE OF A CRUCIAL NEW MOVEMENT IN EDUCATION TO BRING STUDENTS OF MULTIPLE COUNTRIES AND CULTURES TO SCHOOLS WHERE ALL CAN GROW AND LEARN TOGETHER MOST OLDER ADULTS IN THEIR CHILDHOOD EXPERIENCED DISTANT PARTS OF THE WORLD AND OTHER CULTURES ONLY AS FANCIFUL IMAGES BUILT FROM OUTDATED FRAGMENTARY AND LOCALLY COLORED INFORMATION OUR COMMUNITIES RARELY EXTENDED BEYOND A FEW MILES CHILDREN OF TODAY ARE AWARE OFTEN PAINFULLY OF THE WORLD AS A GLOBAL SKEIN OF INTERDEPENDENT SYSTEMS ACTIVITIES AND CULTURES A SKEIN THAT IS NOTSOGRADUALLY BECOMING A SURVIVAL NET IT IS IMPERATIVE THAT TODAY'S CHILDREN GROW UP WITH AN UNDERSTANDING OF THE WORLD AND ITS PEOPLE AS THEY REALLY ARE WHEN IS THERE A BETTER TIME IN ONE'S LIFE TO LEARN TO RESPECT AND LIVE IN COMMUNITY WITH PEOPLE OF ANOTHER RACE AND/OR CULTURE THAN DURING THE FORMATIVE YEARS OF PREPARATION FOR ADVANCED EDUCATION THIS IS A NEW TIME AND A NEW DIRECTION IN EDUCATION THAT DEMANDS FOCUS AND HARD WORK NEW THINGS ARE NEVER SMOOTH NOR UNIVERSALLY SUCCESSFUL YOUR ARTICLE IDENTIFIES SOME OF THE PROBLEMS OUR WHITE MOUNTAIN SCHOOL WAS CITED IN YOUR ARTICLE IN CONNECTION WITH THE DIFFICULTIES OF ONE OF OUR STUDENTS THROUGHOUT ITS 108YEAR HISTORY THE WHITE MOUNTAIN SCHOOL HAS COMPRISED A SMALL COMMUNITY KNOWN FOR THE INDIVIDUAL CARE AND QUALITY OF EDUCATION IT GIVES ITS STUDENTS THERE ARE TIMES HOWEVER WHEN THE PERSONAL GOALS OF A STUDENT AND THE INTEGRITY OF THE COMMUNITY ARE IRRECONCILABLE IN SPITE OF OUR HARD WORK SUCH PAINFUL TIMES REQUIRE RESPONSIBLE ACTION BUT DON'T CHANGE OUR LOVE FOR THE INDIVIDUALS INVOLVED LET'S CHALLENGE ANY POSSIBLE EXPLOITATION OF THIS NEW EDUCATIONAL MANDATE BUT ENCOURAGE ITS HEALTHY DEVELOPMENT LET'S ENCOURAGE WORLD COMMUNITY EDUCATION WHEREVER IT IS GENUINE AND WORKING YOUR ARTICLE DOES A DISSERVICE TO AMERICAN INDEPENDENT BOARDING SCHOOLS THE VAST MAJORITY OF INTERNATIONAL STUDENTS ARE WELLSERVED BY AMERICAN BOARDING SCHOOLS OUR INTERNATIONAL ENROLLMENTS HAVE DOUBLED IN THE PAST FIVE YEARS PRECISELY BECAUSE WE ARE DOING A GOOD JOB IF THE SALE OF A BOEING JETLINER IN THAILAND OR A MOTOROLA CELLULAR PHONE IN JAPAN IS CELEBRATED AS A VICTORY IN THE INTERNATIONAL MARKETPLACE WHY IS OUR SUCCESS IN ATTRACTING 93 MILLION IN FOREIGN STUDENT TUITION THIS YEAR AN UNSEEMLY SCRAMBLE TO FILL BOARDING SCHOOL BEDS AUSTRALIA BRITAIN SWITZERLAND AND FRANCE ARE AMONG THE NATIONS WHOSE BOARDING SCHOOLS WOULD'VE GLADLY ENROLLED THE PACIFIC RIM STUDENTS WHO CHOSE TO STUDY IN THE US YOUR ARTICLE GIVES A NEW PERSPECTIVE TO DIVERSITY ON BOARDING SCHOOL CAMPUSES ACROSS THE COUNTRY DEEP POCKETS AND A STEADY STREAM OF PROSPECTIVE STUDENTS MAY BE A MOTIVATOR FOR SOME SCHOOLS IN THESE TOUGH ECONOMIC TIMES HOWEVER THERE ARE THOSE OF US THAT TURN AWAY DOZENS OF FOREIGN STUDENTS EVERY YEAR SIMPLY TO KEEP A GOOD BALANCE ON OUR CAMPUS DARLINGTON SCHOOL HAS HAD A STEADY STREAM OF FOREIGN STUDENTS SINCE THE EARLY 1980S MORE THAN 20 COUNTRIES ARE REPRESENTED HERE AT DARLINGTON AND THIS VARIETY LENDS TO A GREAT COMMUNITY ONE OF OUR FACULTY MEMBERS COMMENTED MY DISCUSSION OF WORLD HISTORY WOULD SUFFER WITHOUT THE FEEDBACK OF MY STUDENTS FROM THE REPUBLIC OF GEORGIA HUNGARY SPAIN JAPAN MALAWI OR GERMANY THEY ARE AN INVALUABLE PART TO OUR LEARNING PROCESS BECAUSE THEY OPEN OUR EYES TO THE WORLD BEYOND OUR BORDERS 9404010002 940401 GRUMMAN BEGINS CONSIDERING OFFERS TARGET BIDDERS KEEP MOVES PRIVATE BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL GRUMMAN CORP BEGAN CONSIDERING OFFERS FOR THE COMPANY AS IT MOVED TOWARD A MONDAYMORNING ANNOUNCEMENT OF ITS CHOICE BETWEEN RIVAL SUITORS MARTIN MARIETTA CORP AND NORTHROP CORP ALL THREE DEFENSE CONTRACTORS REFUSED TO DISCUSS YESTERDAY'S AUCTION FOR WHICH GRUMMAN HAD INVITED FINAL SEALEDBID OFFERS BY A 5 PM EST DEADLINE PROCEDURES THAT GRUMMAN OUTLINED FOR THE AUCTION THIS WEEK REQUIRED SECRECY ON THE PART OF ANY BIDDERS ASKED WHETHER NORTHROP HAD SUBMITTED A NEW BID IN THE GRUMMAN AUCTION A NORTHROP SPOKESMAN DECLINED TO COMMENT BUT HE CONFIRMED THAT NORTHROP HASN'T REVOKED ITS 60ASHARE TENDER OFFER TOTALLING 204 BILLION GRUMMAN ON WEDNESDAY HAD REJECTED A NORTHROP OFFER TO RAISE ITS BID TO 62 A SHARE OR 211 BILLION IF GRUMMAN WOULD ABANDON ITS SECRET AUCTION PROCEDURE AND ADOPT A PUBLIC BIDDING PROCESS THAT NORTHROP ADVOCATED A MARTIN MARIETTA SPOKESMAN SAID THE COMPANY'S FEELING IS THAT THIS IS A PRIVATE MATTER BETWEEN US AND GRUMMAN GRUMMAN'S SPOKESMAN WHO SAID THE COMPANY WOULD RESERVE ANY COMMENTS ON THE AUCTION UNTIL 9 AM MONDAY DID SAY THAT MARTIN MARIETTA'S ORIGINAL TENDER OFFER OF 55ASHARE OR 193 BILLION WAS STILL IN EFFECT AFTER THE AUCTION DEADLINE THAT OFFER WAS INCLUDED IN A MARCH 7 AGREEMENT WITH GRUMMAN TO ACQUIRE THE BETHPAGE NY DEFENSE CONTRACTOR INVESTORS UNSURE ABOUT WHETHER ANY HIGHER BIDS WERE BEING SUBMITTED SEEMED TO BE SPECULATING THAT THE COMPANY BUYING GRUMMAN WOULDN'T PAY MUCH OF A PREMIUM OVER THE 62 A SHARE THAT NORTHROP HAD INDICATED IT MIGHT OFFER IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GRUMMAN SHARES ROSE 75 CENTS TO CLOSE AT 64625 TRADING ALSO SHOWED THAT WALL STREET WASN'T SURE WHETHER NORTHROP OR MARTIN MARIETTA HAD THE UPPER HAND SHARES IN BOTH THOSE COMPANIES FELL REFLECTING CONCERNS THAT A WINNING BID MIGHT HURT THE VICTOR'S FINANCIAL POSITION ON THE BIG BOARD MARTIN MARIETTA SHARES CLOSED AT 44 DOWN 1 NORTHROP SHARES ENDED AT 39857 ALSO OFF 1 SOME INDUSTRY WATCHERS HAVE SAID THAT THERE MAY BE LITTLE TO KEEP THE LOSING BIDDER FROM COMING BACK ON MONDAY WITH A HIGHER BID DESPITE GRUMMAN'S INTENTION TO USE THE THREEDAY WEEKEND TO WRAP UP A FINAL ACQUISITION AGREEMENT WITH THE SUITOR IT CHOOSES GRUMMAN AND ITS CHAIRMAN RENSO L CAPORALI HAVE BEEN EAGER TO FIND A COMPANY TO BUY IT AS THE POSTCOLD WAR DEFENSE INDUSTRY SHRINKS BUT MR CAPORALI HAD BEEN ATTEMPTING TO SHORTEN THE BIDDING PROCESS BY SEEKING A SINGLE BEST AND FINAL OFFER FROM ITS SUITORS CREATING WHAT SOME ON WALL STREET SEE AS A HIGHSTAKES CARD GAME WITH THE MAKER OF TACTICAL AIRCRAFT AND DEFENSE ELECTRONICS AS THE POT MARTIN MARIETTA WHICH HAS GROWN BY ACQUISITION INTO ONE OF THE LARGEST US ARMS COMPANIES HAS OPTED FOR A CLASSIC POKERFACE POSTURE OF LATE THE CHAIRMAN OF THE BETHESDA MD CONCERN NORMAN R AUGUSTINE SHOWED AN INITIAL BURST OF ANGER AT LOS ANGELESBASED NORTHROP WHEN IT RAISED THE STAKES TO 60 A SHARE BUT MR AUGUSTINE HAD BEEN SO QUIET SINCE THEN THAT SOME IN THE DEFENSE INDUSTRY SPECULATED THAT MARTIN MARIETTA HAD DECIDED TO DROP OUT OF THE BIDDING OTHERS BELIEVE MARTIN MARIETTA REMAINS COMMITTED TO ADDING GRUMMAN'S DEFENSEELECTRONICS CAPABILITIES TO ITS OWN ONE PERSON INVOLVED WITH THE BIDDING PROCESS POINTED OUT THAT THERE HAD BEEN A MAJOR GUESSING GAME ABOUT MARTIN MARIETTA'S BIDDING STRATEGY THE INDUSTRY KNOWS MR AUGUSTINE AS AN EXECUTIVE WHO WON'T DO BIDDING WARS THIS PERSON SAID BUT HE'S ALSO TRYING TO BE KING OF THE HILL IN THE DEFENSE INDUSTRY AND DOESN'T WANT TO PASS UP A CHANCE TO WIN GRUMMAN NORTHROP A SMALLER DEFENSE CONTRACTOR BEST KNOWN FOR ITS B2 BOMBER ESPECIALLY WANTS TO ACQUIRE GRUMMAN'S AIRPLANEBUILDING CAPABILITY ITS CHAIRMAN KENT KRESA HAS EMERGED AS THE MOST OUTSPOKEN PLAYER NOT ONLY THREATENING MARTIN MARIETTA WITH A BIDDING WAR FOR GRUMMAN BUT ACCUSING GRUMMAN OF IGNORING ITS SHAREHOLDERS' INTERESTS BY SETTING UP AN AUCTION PROCESS AIMED AT PREVENTING SUCH A BATTLE A DECISION BY NORTHROP TO BID UNDER GRUMMAN'S AUCTION RULES WOULD REPRESENT A BREAK FROM PREVIOUS NORTHROP POSITIONS ESPECIALLY ITS CONCERN THAT THERE BE PUBLIC DISCLOSURES OF OFFERS SO THAT EACH RIVAL CAN RESPOND ONE INDIVIDUAL FAMILIAR WITH THE BIDDING SUGGESTED THAT GRUMMAN'S AUCTION PLAN HAD CREATED A MAJOR QUANDARY FOR NORTHROP WHOSE ADVISERS WERE HASHING OVER OPTIONS WHILE MR KRESA ATTENDED A CEREMONY FOR THE B2 IN PALMDALE CALIF THE COMPANY HAS BEEN SO COMMITTED TO KEEPING AN OPEN DIALOGUE HE SAID THE ONLY THING THAT WOULD MODIFY THAT POSITION WOULD BE IF GRUMMAN OFFERED CONDITIONS MAKING IT ADVANTAGEOUS TO KEEP THINGS SEALED WITH LITTLE NEWS TO CONSIDER AS THE DEADLINE APPROACHED YESTERDAY TRADERS SPECULATED ABOUT WHY GRUMMAN WANTED TO SPREAD THE FINALAGREEMENT PROCESS OVER A THREEDAY WEEKEND SOME THOUGHT GRUMMAN MIGHT USE THE TIME TO ESTABLISH A DEFENSE THAT WOULD PREVENT THE LOSING BIDDER FROM COUNTERING PERHAPS BY GIVING THE WINNING BIDDER AN OPTION TO BUY A PRIME ASSET SUCH AS ITS ELECTRONICSYSTEMS DIVISION WITHOUT THE CHANCE TO BUY ITS CROWN JEWEL THE LOSING BIDDER WOULD BE UNLIKELY TO SWEETEN ITS OFFER ANOTHER POSSIBILITY IS THAT GRUMMAN COULD INSTALL A LARGE BREAKUP FEE IN THE CONTRACT SADDLING ANY COMPANY THAT ATTEMPTS TO CHALLENGE THE WINNING OFFER WITH ADDITIONAL FINANCIAL BURDENS SUCH A FEE PROBABLY WOULD BE MUCH LARGER THAN THE 50 MILLION WRITTEN INTO THE ORIGINAL MARTIN MARIETTAGRUMMAN ACQUISITION PLAN WHICH WASN'T SUFFICIENTLY LARGE TO DISCOURAGE A BID BY NORTHROP THAT TOPPED IT GREG STEINMETZ CONTRIBUTED TO THIS ARTICLE 9404010001 940401 INTERNATIONAL RUSSIA'S TAIGA BONDS SOAR AS TRADERS GUESS AT WHAT AND WHERE THEY ARE BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW WHILE MUCH DEVELOPINGNATION DEBT HAS BEEN HITTING THE SKIDS RUSSIA IS TRYING TO COPE WITH A NEW TYPE OF RUSSIAN GOVERNMENT BOND THAT SINCE JANUARY HAS JUMPED IN VALUE NICKNAMED THE TAIGA BOND AFTER THE ICY SIBERIAN FORESTS KNOWN AS THE TAIGA THIS INSTRUMENT WAS ISSUED OFFICIALLY LAST MAY TO COMPENSATE THE MOSTLY RUSSIAN DEPOSITORS WHO HAD THEIR ACCOUNTS FROZEN IN 1991 WHEN THE SOVIET BANK FOR FOREIGN ECONOMIC AFFAIRS CALLED VNESHEKONOMBANK DEFAULTED ON SOME 65 BILLION IN LOANS SADLY THE TAIGA BOND'S SWIFT RISE AGAINST THE DOWNWARD GLOBAL CURRENT IS NOT NECESSARILY A VOTE OF SOARING INVESTOR CONFIDENCE IN RUSSIA RELATIVE TO THE REST OF THE DEVELOPING WORLD IT IS MORE LIKELY BECAUSE OF RUSSIA'S HAVING WHAT ONE WESTERN TAIGA TRADER CALLS ONE OF THE MOST ILLIQUID INEFFICIENT MARKETS ON THE PLANET ALSO VARIOUSLY NICKNAMED THE TUNDRA BOND THE BORIS BOND OR IF YOU LIKE THE MINFIN A REFERENCE TO ITS ISSUER THE RUSSIAN MINISTRY OF FINANCE THE TAIGA BOND HAS GOT TRADERS BOTH HERE AND ABROAD PUZZLING OVER WHAT IT IS EVEN AS THEY VIE TO SNAP IT UP GATHERED IN A SEMINAR ROOM IN MOSCOW THIS WEEK SEVERAL DOZEN BANKERS TRADERS AND FINANCIAL ANALYSTS SPENT MORE THAN TWO HOURS LISTENING TO FIVE EXPERTS TRYING TO PIN DOWN HOW TAIGA BONDS REALLY WORK WE ARE LIKE PEOPLE IN A RESTAURANT THE MEAL IS IN THE TABLE AND WE'RE ALL READY TO EAT BUT WE DON'T KNOW WHAT THE COOK PUT IN THE SOUP SAID THE PRESIDENT OF CITIBANK'S MOSCOW OFFICE MILJENKO HORVATS ON THE MENU TAIGAS SOUND STRAIGHTFORWARD ISSUED IN MAY IN FIVE TRANCHES MATURING IN ONE THREE SIX 10 AND 15 YEARS TAIGA BONDS CARRY COUPONS YIELDING 3 YEARLY INTEREST THEIR TOTAL FACE VALUE COMES TO 8 BILLION AN AMOUNT LARGE ENOUGH TO CREATE A LIQUID MARKET AND POSSIBLY A BENCHMARK BOND THERE IS THE ADDED ATTRACTION THAT IN RUSSIA'S ENVIRONMENT OF TRIPLEDIGIT OR QUADRUPLEDIGIT YEARLY INFLATION TAIGAS ARE DOLLARDENOMINATED AND CAN BE TRADED NOT ONLY BY RUSSIANS BUT BY FOREIGNERS IN PRACTICE HOWEVER THIS IS RUSSIA AND THE LOGISTICS GET STICKY THE TROUBLES START WITH THE SHEER MECHANICS OF PROCESSING 8 BILLION OF TRADABLE BONDS DENOMINATED IN UNITS OF 1000 10000 AND 100000 SOME TAIGAS ARE CAUGHT IN THE CRUCIBLE OF RUSSIA'S MOLTEN FINANCIAL MARKETS STILL ROILING IN THE FORMATIVE STAGE THEMSELVES WHAT MR HORVATS DESCRIBES AS A COMBINATION OF BUREAUCRATIC INEFFICIENCY AND NOT BEING ABLE TO TRACK DOWN THE ORIGINAL DEPOSITORS HAS MEANT THAT BONDS OFFICIALLY ISSUED BY THE MINISTRY OF FINANCE LAST MAY DID NOT PHYSICALLY REACH THEIR RECIPIENTS UNTIL SEPTEMBER OR LATER SOME CERTIFICATES ESPECIALLY FROM THE 10YEAR AND 15YEAR TRANCHES HAVE STILL NOT TURNED UP THERE IS THE ADDED GLITCH THAT TAX POLICY ON THE BONDS IS MURKY POSSIBLY BECAUSE RUSSIA'S MINISTRY OF FINANCE ITSELF HASN'T DECIDED WHAT IT WANTS RECENT EFFORTS OF THE MOSCOW INTERBANK CURRENCY EXCHANGE TO SET UP A UNIFIED MARKET IN TAIGA BONDS ARE OFF TO A WOBBLY START THE HEAD OF THE MICEX SECURITIES DEPARTMENT ALEXANDER SARCHEV NOTED GLUMLY YESTERDAY THAT IN THE SECOND ROUND THAT MORNING OF WHAT HE HOPES WILL BECOME A REGULAR WEEKLY TAIGA TRADING SESSION ONLY THREE DEALS WERE CONCLUDED THE BIGGEST PROBLEM ESPECIALLY FOR FOREIGN INVESTORS IS THAT THE BONDS MUST BE PHYSICALLY PRESENTED IN MOSCOW FOR REDEMPTION OR FOR PAYMENT ON THE ANNUAL COUPONS THAT WILL BE A HURDLE FOR THOSE WHO HAVE NOT YET RECEIVED THEIR CERTIFICATES AND FOR TAIGA HOLDERS ABROAD IT MEANS THAT UNLESS THEY WANT TO HOP A PLANE TO RUSSIA WHEN PAYMENT COMES DUE THEY MUST RELY ON THE CUSTODIAL GRACES OF RUSSIAN BANKS THESE ARE NOTORIOUS FOR THE KIND OF SERVICE THAT ONE NEW YORK BANKER DESCRIBES AS COMPLICATED AND SLOPPY SIMILAR TECHNICAL HITCHES MAY TURN UP ON THE GOVERNMENT SIDE WARNS MARY GINSBERG A DIRECTOR OF MOSCOWBASED LTS FINANCE THE PROBLEM IS SUPPOSED TO BE NOT LACK OF FUNDS BUT LACK OF TECHNICAL MEANS TO DISTRIBUTE THE PAYMENTS OWED TO THESE HEADACHES CAN BE ADDED THE POLITICAL RISK OF A COUNTRY STILL HUNG OVER FROM ITS 74YEAR BENDER WITH COMMUNISM COUP RUMORS FLUTTER THROUGH THE LOCAL PRESS RUSSIA'S DOMINANT PARLIAMENTARY FACTIONS RANGE FROM COMMUNIST TO ULTRANATIONALIST AND ITS CABINET THESE DAYS HAS SHED ALL BUT ONE OF THE REFORMERS WHO SINCE 1991 WROUGHT THE MOST MARKETORIENTED POLICY SHIFTS NONETHELESS FOR FOREIGNERS ADVENTUROUS ENOUGH TO WANT A SLICE OF RUSSIAN RISK TAIGA BONDS SEEM TO OFFER THE SIMPLEST WAY INTO THE MARKET EVERYBODY WANTS TO BUY NOBODY'S SELLING SAYS MS GINSBERG SINCE THE START OF THIS YEAR PRICES FOR 15YEAR TAIGAS HAVE SOARED ALMOST 70 TO 27 CENTS ON THE DOLLAR FROM 16 THE TAIGA'S RISE COMES IN ESPECIALLY SHARP CONTRAST TO THE FALLING PRICE OF OLD VNESHEKONOMBANK DEBT DENOMINATED IN AN ASSORTMENT OF CURRENCIES AND OWED TO MORE THAN 100 WESTERN COMMERCIAL BANKS THAT HAVE YET TO COLLECT ON THEIR 65 BILLION IN SOUR LOANS TO THE OLD SOVIET UNION REFERRED TO IN THE BANKING WORLD AS VNESH LOANS THIS PAPER HAS FOR THE PAST TWO YEARS BEEN TRADED AT A DISCOUNT REFLECTING FEARS OR HOPES THAT RUSSIA MIGHT YET HONOR OLD SOVIET DEBTS AFTER A CLIMB LATE LAST YEAR VNESH LOANS HAVE DROPPED BY ALMOST HALF TO 28 OF FACE VALUE FROM 52 PART OF THE TAIGA'S APPEAL CAN BE ATTRIBUTED TO RUSSIA'S NEWBORN POSTSOVIET RECORD IN SERVICING THE SHORTTERM RUBLEDENOMINATED TREASURY BILLS IT HAS BEEN ISSUING MONTHLY SINCE LAST MAY SOLID SERVICE OF OLD SOVIET EUROBONDS ALSO HELPS BOLSTER THE NEW MORE RELIABLE IMAGE PART OF THE DRAW MAY ALSO BE THAT SOME INVESTORS SEE RUSSIA'S PROBLEMS AS A BARGAINBASEMENT SETTING FOR BUYERS WILLING TO BRAVE THE BUREAUCRACY FOR EXAMPLE A HONG KONGBASED TAIGA BUYER MARC FABER SAYS THAT ASSETS IN RUSSIA ARE GROSSLY UNDERVALUED IN PARTICULAR THE FINANCIAL ASSETS ARE VERY CHEAP THE REST OF THE DRAW IS PROBABLY THAT FOR FOREIGNERS WHO WANT TO MAKE A RELATIVELY LIQUID INVESTMENT IN RUSSIA IN DOLLARS THE TAIGA IS NOT ONLY THE SIMPLEST SHOW IN TOWN BUT THE ONLY ONE THE FIRST TEST OF THE TAIGA WILL COME MAY 14 WHEN THE INITIAL ONEYEAR TRANCHE OF TAIGA BONDS COMES DUE SAYS FIXEDINCOME ANALYST ROMAN BORISOVICH AT CHEMICAL BANK IN NEW YORK PEOPLE ARE WATCHING THE TAIGA WITH A LOT OF QUESTIONS RIGHT NOW WE NEED TO SEE THE FIRST COUPONS AND THE FIRST TRANCHE REDEEMED TO INITIATE THE SERVICE RECORD 9404010104 940301 COPLEY GETS STRONG DOSE OF CRITICISM FOR ITS DRUG RECALL BY TOM KNUDSON STAFF REPORTER OF THE WALL STREET JOURNAL ON THE FIRST WEDNESDAY IN JANUARY THE WORD WENT OUT ALBUTEROL A GENERIC PRESCRIPTION DRUG USED BY THOUSANDS OF AMERICANS WITH BREATHING PROBLEMS WAS BEING RECALLED DUE TO BACTERIAL CONTAMINATION THE ANNOUNCEMENT BY THE US FOOD AND DRUG ADMINISTRATION AND COPLEY PHARMACEUTICAL INC CARRIED THE FDA'S HIGHEST LEVEL OF WARNING A CLASS ONE RECALL MEANING THE CONTAMINATED ALBUTEROL SOLD NATIONWIDE UNDER THE COPLEY NAME AND 10 PRIVATE LABELS CARRIED A STRONG LIKELIHOOD OF SERIOUS ADVERSE HEALTH CONSEQUENCES OR DEATH BUT IN CASA GRANDE ARIZ WENDY LOPEZ WASN'T WORRIED SHE DIDN'T EVEN HEAR ABOUT THE RECALL UNTIL ALMOST A MONTH LATER WHEN SHE WAS INFORMED BY THE WIFE OF HER EXHUSBAND SOMEONE SHOULD HAVE CONTACTED US SAYS MS LOPEZ A GROCERY CASHIER WHOSE FIVEYEAROLD SON TROY BEGAN TAKING ALBUTEROL FOR ASTHMA A YEAR AGO I'M UPSET SHE SAYS ADDING THAT HER PHARMACY HAS ALL OF OUR INFORMATION ON HAND I DON'T THINK THEY TOOK THIS SERIOUSLY ENOUGH I'M NOT HARD TO REACH EIGHT WEEKS AFTER COPLEY AND THE FDA ISSUED THE CLASSONE WARNING INDICATIONS ARE GROWING THAT THE RECALL NET WAS FULL OF HOLES MANY PATIENTS SAY THEY WEREN'T TOLD ABOUT THE PROBLEM AND CONTINUED TO USE ALBUTEROL AFTER IT WAS RECALLED PHARMACISTS WHO GENERALLY INFORM PATIENTS ABOUT PROBLEM DRUGS SAY THEY WERE CONFUSED ABOUT THE SERIOUSNESS OF THE RECALL PHYSICIANS SAY THEY WEREN'T NOTIFIED QUICKLY ENOUGH SOME SAY THEY WEREN'T NOTIFIED AT ALL WHAT WENT WRONG NANCY SANDER PRESIDENT OF ALLERGY AND ASTHMA NETWORK/MOTHERS OF ASTHMATICS INC A FAIRFAX VA CONSUMER GROUP SAYS COPLEY WAS GROSSLY UNPREPARED FOR THIS CRISIS THEY ARE IN THE BUSINESS OF BOTTLING AND DISTRIBUTING DRUGS THEIR CUSTOMER IS NOT THE PATIENT THEIR CUSTOMERS ARE WHOLESALERS AND DISTRIBUTORS COPLEY SEES THINGS DIFFERENTLY I THINK WE'VE DONE A REMARKABLY RESPONSIBLE JOB SAYS LARRY FRIEDMAN OF HILL & KNOWLTON THE PUBLICRELATIONS FIRM COPLEY HIRED TO MANAGE PUBLICITY ABOUT THE RECALL TO SAY WE WERE CAUGHT OFF GUARD I DON'T THINK THAT'S FAIR COPLEY'S TOP EXECUTIVES THEMSELVES HAVE SAID LITTLE SINCE THE RECALL THEY HAVE ISSUED A SINGLE NEWS RELEASE AND NOT RESPONDED TO REQUESTS FOR INTERVIEWS NO ONE DISPUTES THAT ALBUTEROL WAS A WONDER DRUG FOR COPLEY LAST YEAR COPLEY'S TOTAL ALBUTEROL SALES WERE ABOUT 14 MILLION 15 OF ALL REVENUE A MUSCLE RELAXANT IT IS INHALED AS A FINE MIST A HIGHLY EFFICIENT METHOD OF DELIVERING RELIEF TO WEARY LUNGS BUT RISKY IN CASES OF CONTAMINATION COPLEY'S WOES BEGAN LATE LAST YEAR IT WON'T SPECIFY THE DATE WHEN ITS INSPECTORS FOUND A BACTERIA PSEUDOMONAS FLUORESCENS IN AN UNSPECIFIED NUMBER OF VIALS IN SIX MANUFACTURING LOTS OF ALBUTEROL SAYS SUSAN CRUZAN AN FDA SPOKESPERSON A LOT CONTAINS 40000 VIALS OF ALBUTEROL COPLEY AND THE FDA SAY THE GERM IS UNLIKELY TO AFFECT MOST PEOPLE BUT COULD CAUSE SERIOUS INFECTIONS IN PEOPLE WITH CYSTIC FIBROSIS CHRONIC OBSTRUCTIVE LUNG DISEASE AND COMPROMISED IMMUNE SYSTEMS THE PUBLIC WASN'T INFORMED AT THE OUTSET INSTEAD COPLEY INITIATED A LIMITED RECALL INVOLVING THREE PRIVATELABEL COMPANIES AND 200 OTHER WHOLESALERS AND CUSTOMERS THE FDA SAYS IT WAS NOTIFIED BY COPLEY ABOUT THE PROBLEM ON DEC 27 IN INSPECTIONS TRIGGERED BY THE RECALL THE FDA FOUND UNSANITARY CONDITIONS POOR QUALITY CONTROL AND IMPROPERLY SIGNED LAB REPORTS AT COPLEY'S ALBUTEROL PLANT IN CANTON MASS ON JAN 5 THE FDA UPGRADED THE RECALL TO CLASS ONE WITH GUIDANCE FROM THE FDA COPLEY SENT NOTICES TO 65000 PHARMACISTS AND 223000 PHYSICIANS AND NOTIFIED THE NEWS MEDIA COPLEY ALSO SET UP A SPECIAL 800 PHONE LINE FOR QUESTIONS AND COMPLAINTS AND THEN THE PROBLEMS STARTED DOCTORS WERE ABOUT THE LAST TO HEAR ABOUT THE RECALL SAYS DANIEL EIN AN ALLERGIST IN WASHINGTON DC WHO HEADS A GOVERNMENTAFFAIRS COMMITTEE FOR THE AMERICAN ACADEMY OF ALLERGY AND IMMUNOLOGY HE SAYS PATIENTS HEARD ABOUT THE ALBUTEROL RECALL THROUGH THE MEDIA AND BOMBARDED THEIR DOCTORS WITH QUESTIONS BEFORE MANY HAD HEARD ABOUT IT DR EIN SAYS BRANDNAME COMPANIES USING SALES REPRESENTATIVES GET TO US IN A WAY THAT THE GENERIC MANUFACTURERS DON'T THEY'RE PROBABLY MORE TUNED INTO DATABASES THEY HAVE BIGGER RESOURCES BUT HILL & KNOWLTON'S MR FRIEDMAN SAYS IT IS UNFAIR TO SINGLE OUT GENERICS FOR CRITICISM BRANDNAME COMPANIES GO THROUGH THE SAME KIND OF STUMBLES THAT GENERICS DO HE SAYS ANOTHER DOCTOR MARTHA WHITE DIRECTOR OF PEDIATRICS AND RESEARCH AT THE INSTITUTE FOR ASTHMA AND ALLERGY AT THE WASHINGTON HOSPITAL CENTER IN WASHINGTON DC SAYS SHE LEARNED OF THE RECALL WHEN SOMEONE FAXED HER A NEWSPAPER ARTICLE IF THEY'RE NOT NOTIFYING PEOPLE WHO SPECIALIZE IN ASTHMA CARE WHO ARE THEY NOTIFYING SHE ASKS SAYS MR FRIEDMAN WE FEEL BAD IF WE MISSED HER SHE SHOULD HAVE BEEN ON THE LIST OTHER PROBLEMS WERE REPORTED WITH COPLEY'S 800 LINE MOST PEOPLE WE TALKED TO SAID THEY COULD NOT GET THROUGH ON THE PHONE AND THOSE THAT DID FELT THEY WERE TREATED RUDELY AND THEIR QUESTIONS WERE NOT ANSWERED SAYS MS SANDER THE ASTHMA ACTIVIST COPLEY DENIES SUCH ALLEGATIONS MORE HANGUPS TOOK PLACE AT PHARMACIES IN TUCSON ARIZ ALBUTEROL PATIENT SANDRA ANDERSON SAYS SHE DIDN'T HEAR ABOUT THE RECALL UNTIL JAN 31 WHEN SHE SAW A TELEVISION COMMERCIAL BY THE LAW FIRM OF JACOBY & MEYERS TARGETING ALBUTEROL USERS I CALLED MY PHARMACIST AT A KMART CORP DRUGSTORE SAYS MRS ANDERSON WHO SUFFERS FROM CHRONIC OBSTRUCTIVE PULMONARY DISEASE AND I SAID HOW COME YOU DIDN'T TELL ME ABOUT THIS' AND HE SAID IT MUST HAVE SLIPPED HIS MIND SUSAN ENGLAND A SPOKESPERSON AT KMART'S HEADQUARTERS IN MICHIGAN SAYS MRS ANDERSON'S PHARMACY TRIED TO CONTACT HER AND DID IN FACT SEND A LETTER TO HER MRS ANDERSON HOWEVER SAYS SHE NEVER RECEIVED A LETTER AT A WALGREEN CO PHARMACY IN CASA GRANDE WHERE MS LOPEZ PURCHASED HER SON'S ALBUTEROL PHARMACIST JERRY STEIN SAYS ALBUTEROL IS A HIGHVOLUME PRODUCT THERE ARE A LOT OF PATIENTS ON THIS MEDICATION THAT'S WHAT COMPLICATED IT A WALGREEN SPOKESMAN SAYS THE COMPANY FOLLOWED COPLEY'S RECALL INSTRUCTIONS TO NOTIFY PATIENTS AND STOP SELLING THE PRODUCT BUT WON'T COMMENT FURTHER JOHN HAMMOND DIRECTOR OF PRACTICE AFFAIRS FOR THE AMERICAN PHARMACEUTICAL ASSOCIATION SAYS PERFECT RECALLS IN WHICH EVERY PATIENT IS NOTIFIED AND EVERY SUSPECT PRODUCT IS RETURNED ARE RARE HOWEVER THOROUGH THEY MAY BE THERE'S A FAIR LIKELIHOOD YOU'RE NOT GOING TO CATCH EVERYBODY SAYS MR HAMMOND WHOSE GROUP REPRESENTS 42000 PHARMACISTS IN THE RECALL OF ALBUTEROL MR HAMMOND SAYS PHARMACISTS WERE CONFUSED IN PART BECAUSE OF DIFFERENT MESSAGES FROM THE FDA ONE MESSAGE WAS THE CLASSONE RANKING HE SAYS THE OTHER WAS A JAN 6 TALK PAPER SENT TO PHARMACIST GROUPS THAT SAID NO ILLNESSES HAVE BEEN REPORTED TO THE FDA PHARMACISTS HAVE TO MAKE SOME KIND OF JUDGMENT MR HAMMOND SAYS THERE WAS A LITTLE BIT OF A DISCONNECT AS TO HOW SERIOUS THIS REALLY WAS COPLEY'S RECALL OF ALBUTEROL DEC 27 COPLEY BEGINS LIMITED RECALL PUBLIC NOT NOTIFIED JAN 1 FDA BEGINS INSPECTION OF COPLEY FACILITIES JAN 6/7 COPLEY WRITES DOCTORS AND PHARMACISTS JAN 11 TWO CHICAGO LAWSUITS BLAME ALBUTEROL FOR INFANTS' PNEUMONIA THE NEWS IS PICKED UP BY A LOCAL NEWSPAPER JAN 24 TV ADS IN ARIZONA BY THE JACOBY & MEYERS LAW FIRM SEEKING ALBUTEROL VICTIMS ARE GIVEN NATIONWIDE PUBLICITY JAN 25 FLORIDA LAWSUIT BLAMES BOY'S DEATH ON ALBUTEROL AND GETS REGIONAL PUBLICITY JAN 31 ALBUTEROL USER SANDRA ANDERSON FIRST HEARS OF THE RECALL THROUGH A JACOBY & MEYERS AD FEB 1 FDA REPORT NOTES UNSANITARY CONDITIONS AT COPLEY FEB 2 WENDY LOPEZ MOTHER OF ALBUTEROL USER LEARNS OF THE RECALL FEB 3 COPLEY SAYS REPORTS OF DEATHS AND ILLNESSES' UNCONFIRMED SEE RELATED LETTER LETTERS TO THE EDITOR OUR DRUG RECALL WAS WELLMANAGED WSJ APRIL 1 1994 9403010113 YY94 MM04 9404010163 940225 THE NEW PREPPIES BOARDING SCHOOLS GO OVERSEAS FOR STUDENTS MONEY IS THE OBJECT FEES FLOW TO FOREIGN AGENTS WHO FIND ENROLLEES ABLE TO PAY THE FULL TUITION A KOREAN COED FEELS ISOLATED BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL WINCHENDON MASS WHEN J WILLIAM LABELLE BECAME HEADMASTER SIX YEARS AGO THE WINCHENDON SCHOOL FACED SINKING ENROLLMENT A TRICKLE OF CASH FLOW AND RISING DEBT BUT MR LABELLE SOON FOUND A SOLUTION FOR THE SMALL PRIVATE BOARDING SCHOOL WELLTODO FOREIGN STUDENTS MAINLY FROM ASIA NOW 51 OF WINCHENDON'S 125 STUDENTS ARE FOREIGNERS A FOURFOLD INCREASE FROM 1988 THEIR ABILITY TO PAY THE SCHOOL'S 22750 IN TUITION AND FEES IS ENABLING WINCHENDON TO PAY OFF A 12 MILLION MORTGAGE ON ITS GYM AND BECOME DEBT FREE BUT THINGS AREN'T SO SIMPLE FOR WINCHENDON'S FOREIGN STUDENTS EACH YEAR ABOUT 10 OF THE 15 KOREANS LEAVE AFTER ONE YEAR AND A HANDFUL OF OTHER FOREIGN STUDENTS GET EXPELLED FOR DISCIPLINARY REASONS ONE PROBLEM IS THAT MANY OF THE STUDENTS HAVE SUCH TROUBLE WITH ENGLISH THAT THEIR STUDIES SUFFER AND THEIR OPPORTUNITIES TO MIX WITH THE AMERICANS ON THE WOODSY HILLSIDE CAMPUS ARE LOST WE SPEND TIME WITH SO MANY KOREANS COMPLAINS BO NA YOON A 16YEAROLD FROM SEOUL SOUTH KOREA WE DON'T PLAY WITH THE OTHER PEOPLE AFTER FOUR MONTHS ON CAMPUS SHE SAYS SHE HAS NO CLOSE AMERICAN FRIENDS THE SITUATION AT WINCHENDON IS DEVELOPING AT PREP SCHOOLS ALL OVER THE COUNTRY WITH A DECLINE IN THE NUMBER OF AMERICAN FAMILIES WHO CAN AFFORD RISING TUITIONS THAT NOW AVERAGE MORE THAN 17000 A YEAR SCHOOLS ARE AGGRESSIVELY RECRUITING STUDENTS FROM JAPAN KOREA HONG KONG AND OTHER FAROFF LANDS WHOSE PARENTS WANT THEM TO STUDY IN THE US AND DON'T FLINCH AT THE BILLS THE SCHOOLS ARE SO HUNGRY FOR PAYING FOREIGN STUDENTS THAT OFTEN SCANT ATTENTION IS PAID TO ENROLLEES' QUALIFICATIONS LANGUAGE PROFICIENCY AND KNOWLEDGE OF LIFE IN THE US ONCE ON CAMPUS THE STUDENTS COMPLAIN THE SCHOOLS OFFER LITTLE HELP IN MAKING THE DIFFICULT TRANSITION TO AMERICAN ACADEMIC AND SOCIAL LIFE MORE THAN A FEW OF THE STUDENTS DROP OUT GET EXPELLED OR BOUNCE FROM SCHOOL TO SCHOOL SOME EDUCATORS ARE DISTURBED BY WHAT THEY SEE AS AN UNSEEMLY SCRAMBLE TO FILL BOARDINGSCHOOL BEDS OF PARTICULAR CONCERN IS THE USE OF OVERSEAS AGENTS FOR RECRUITING SOME AGENTS ARE SAID TO CHARGE EXORBITANT FEES TO FAMILIES DEMAND COMMISSIONS FROM SCHOOLS FUDGE STUDENT TRANSCRIPTS AND PLACE STUDENTS IN COMPLETELY INAPPROPRIATE SCHOOLS IT'S A COMBINATION OF GREED AND NAIVETE SAYS DIANE RAPP A SCARBOROUGH NY EDUCATIONAL CONSULTANT WHO HAS PLACED DOZENS OF JAPANESE STUDENTS IN US PREP SCHOOLS SHE SAYS MANY INSTITUTIONS ARE TREATING FOREIGN STUDENTS LIKE A COMMODITY SOME SCHOOL OFFICIALS WARN THAT BOARDING SCHOOLS ARE RELYING TOO HEAVILY ON TOO FEW COUNTRIES FOR THEIR INTERNATIONAL STUDENTS WITH MORE THAN A THIRD COMING FROM KOREA JAPAN AND HONG KONG THEY SAY THE SCHOOLS ARE RISKING A REPEAT OF THE LATE 1970S WHEN SCHOOLS LOADED WITH IRANIAN STUDENTS HAD TO RUSH TO FILL SLOTS AFTER THE SHAH WAS OVERTHROWN AND STUDENTS WERE BARRED FROM LEAVING IRAN SINCE 1988 THE NUMBER OF INTERNATIONAL STUDENTS AT PREP SCHOOLS HAS NEARLY DOUBLED TO ABOUT 5000 WITH THE AVERAGE SCHOOL'S FOREIGN ENROLLMENT NOW AT 124 ACCORDING TO THE 267MEMBER ASSOCIATION OF BOARDING SCHOOLS CAMPUSES WITH FOREIGNSTUDENT POPULATIONS ABOVE 25 AREN'T UNCOMMON WHILE THEIR PRESENCE ISN'T NEW TOP PREP SCHOOLS HAVE BEEN RECRUITING ABROAD FOR YEARS THE PURPOSE AT MANY INSTITUTIONS NO LONGER IS SIMPLY TO DIVERSIFY CAMPUSES TODAY TUITION PAID BY FOREIGN STUDENTS SUBSIDIZES AMERICANS ONLY 5 OF FOREIGN STUDENTS RECEIVE FINANCIAL AID WHILE 29 OF US STUDENTS DO SAYS RICK COWAN DIRECTOR OF THE BOARDINGSCHOOL ASSOCIATION MOREOVER MANY SCHOOLS EXCLUDE FOREIGN STUDENTS FROM RECEIVING FINANCIAL AID SAYS MEADE THAYER FINANCIALAID SPECIALIST AT THE NATIONAL ASSOCIATION OF INDEPENDENT SCHOOLS MANY SCHOOLS WOULD RATHER USE THAT BUDGET TO SUPPORT NEEDY FAMILIES HERE HE SAYS MOST SCHOOLS INSIST THEIR MAIN MOTIVATION FOR RECRUITING FOREIGN STUDENTS ISN'T MONEY BUT TO PROVIDE AN INTERNATIONAL EXPERIENCE FOR AMERICAN STUDENTS WE IN SCHOOLS HAVE THE OBLIGATION TO PREPARE OUR KIDS TO BE GLOBAL CITIZENS SAYS DIEDERICK VAN RENESSE ADMISSIONS DIRECTOR AT DARROW SCHOOL IN NEW LEBANON NY WHERE 45 OF ITS 115 STUDENTS ARE FOREIGN BUT CRITICS SAY MANY SCHOOLS AREN'T PREPARED TO HANDLE THE INFLUX OF FOREIGN STUDENTS THIS IS NOT A QUICK FIX SAYS MRS RAPP THE CONSULTANT TRUE THEY ARE FULLPAY BUT THEY ALSO NEED A LOT OF EXTRA CARE THE ASSUMPTION IS THAT ONCE THEY LEARN ENGLISH EVERYTHING WILL BE FINE BUT IT'S MUCH MORE COMPLICATED THAN THAT ASIAN STUDENTS ARE DRAWN TO US PREP SCHOOLS PRIMARILY OUT OF A DESIRE TO LEARN ENGLISH AND ATTEND AMERICAN COLLEGES WHICH TEND TO BE EASIER TO GET INTO THAN THE UNIVERSITIES BACK HOME BUT SITTING IN A LOUNGE AREA AT WINCHENDON SEVERAL JAPANESE AND KOREAN STUDENTS COMPLAIN ABOUT FEELING ISOLATED AND OF TEACHERS SHOWING LITTLE UNDERSTANDING SOMETIMES THEY ARE RUDE SAYS EUN KIL JANG 18 FROM SEOUL WE CAN'T UNDERSTAND SOME ENGLISH WORDS SO SOMETIMES THEY MAKE JOKES THAT WE DON'T KNOW THE WORDS AT TIMES I FEEL SO BAD PETER NAH ALSO FROM SEOUL WHO WAS EXPELLED FROM A BOARDING SCHOOL IN MICHIGAN FOR DRINKING SAYS AMERICANS DON'T EVEN TRY TO UNDERSTAND KOREAN CULTURE IN WHICH ALL ELDERS ARE SHOWN RESPECT AND SWEARING CAN BE CONSIDERED A SIN THE PROBLEMS AREN'T JUST AT WINCHENDON IN THE PAST TWO YEARS SHINSAKU HIKOSAKA AN 18YEAROLD FROM JAPAN HAS BEEN KICKED OUT OF TWO PREP SCHOOLS THE PUTNEY SCHOOL IN PUTNEY VT AND THE WHITE MOUNTAIN SCHOOL IN LITTLETON NH FOR SMOKING TARDINESS AND OTHER INFRACTIONS MR HIKOSAKA SAYS HE COULD HAVE BEEN A BETTER STUDENT BUT BLAMES SOME OF HIS TROUBLES ON CULTURE SHOCK HOMESICKNESS ALIENATION AND A TOBACCO HABIT ACQUIRED AT HOME WHERE HIGH SCHOOLERS ARE ALLOWED TO SMOKE WHEN HE FIRST ARRIVED IN THE US HE SAYS HE FOUND THE FOOD WAS SO DIFFERENT THAT I COULDN'T EAT I WAS ALWAYS HUNGRY HE NOW ATTENDS A PUBLIC SCHOOL IN WINSLOW MAINE AND LIVES AT SOJOURN INTERNATIONAL A RESIDENTIAL PROGRAM FOUNDED SIX YEARS AGO TO HELP FOREIGN STUDENTS SUFFERING ACADEMIC AND OTHER PROBLEMS SOJOURN'S DIRECTOR GEOFFREY T ROBBINS SAYS MR HIKOSAKA HAS HAD MORE DIFFICULTY THAN SOME BUT NOT AS MUCH DIFFICULTY AS OTHERS SOME KIDS ARE SO OVERWHELMED THAT THEY END UP SIMPLY NOT FUNCTIONING JOHN M NILES HEAD OF ADMISSION AT GROTON SCHOOL IN GROTON MASS WHERE JUST NINE OF THE 325 STUDENTS ARE FOREIGNERS SAYS SOME SCHOOLS ADMIT SO MANY STUDENTS FROM ONE OR TWO COUNTRIES THAT THERE DEVELOPS A KIND OF BALKANIZATION WHERE KIDS DON'T REALLY MIX YOU END UP WITH A CLIQUE OF 10 OR 20 KIDS AND THEY JUST HANG TOGETHER AND TALK JAPANESE ADDS MR ROBBINS TO ACCOMMODATE THE INFLUX OF FOREIGN STUDENTS MANY PREP SCHOOLS HAVE ESTABLISHED INTENSIVE ENGLISHASASECONDLANGUAGE COURSES AND ORIENTATION PROGRAMS FOCUSING ON AMERICAN CULTURE BUT CRITICS SAY SUCH PROGRAMS ARE INSUFFICIENT UNG SIK KIM MANAGER OF HAN KOOK EDUCATION CENTER IN SEOUL WHICH CHARGES SCHOOLS FEES FOR PLACING STUDENTS SAYS MANY OF HIS RECRUITS HAVE PROBLEMS IN THE US BECAUSE THEY ARE TOO QUICKLY PUT IN CLASSES WITH AMERICAN STUDENTS THEY DO NOT UNDERSTAND WHAT THE TEACHER IS SAYING HE SAYS HE SAYS FOREIGN STUDENTS SHOULD TAKE ONLY ENGLISHLANGUAGE COURSES FOR A FEW MONTHS BEFORE ENTERING REGULAR CLASSES PAYING AGENTS FINDER'S FEES FOR STUDENTS IS CRITICIZED BY SOME SCHOOLS AND AN EMBARRASSMENT TO OTHERS THAT ENGAGE IN THE PRACTICE NORMAN D FARWELL DIRECTOR OF ADMISSION AT HEBRON ACADEMY IN HEBRON MAINE SAYS HE IS TROUBLED BY THE FACT THAT HE PAID 1650 TO KOREAN AGENTS FOR EACH OF THE SEVEN KOREAN STUDENTS AT THE SCHOOL I'M NOT TOO EXCITED ABOUT ADMITTING IT HE SAYS I'D LIKE TO BE ABLE NOT TO USE THEM ON THE OTHER HAND THEY DO SUPPLY US WITH GOOD STUDENTS TAKING SUCH FEES VIOLATES AN ETHICS CODE FOR PLACEMENT COUNSELORS IN THE US SCHOOLS SHOULD NOT BE THE CLIENT THE CLIENT SHOULD BE THE FAMILY SAYS VIRGINIA DEVEER ADMISSIONS DIRECTOR AT TABOR ACADEMY IN MARION MASS IF I'M PAYING AN AGENCY TO FIND ME THREE KIDS FROM SPAIN THAT AGENCY WON'T HAVE THE KID'S INTEREST IN MIND IT'LL HAVE MY INTEREST MR KIM THE AGENT IN SEOUL WHO HAS RECEIVED FEES FROM HEBRON ACADEMY SAYS HE IS MORE LIKELY TO SEND A STUDENT TO THE SCHOOL BECAUSE OF THE FEE BUT SEES NOTHING WRONG WITH IT EVEN THOUGH WE RECEIVE A COMMISSION FROM HEBRON ACADEMY I THINK HEBRON IS VERY FAMOUS AND VERY GOOD HE SAYS FEES GO TOWARD HIS ADVERTISING COSTS IN KOREA HE SAYS ADMISSIONS DIRECTORS SAY THEY REGULARLY RECEIVE UNSOLICITED FAXES AND MAIL FROM OVERSEAS AGENTS OFFERING THEIR SERVICES WHO OFTEN TURN OUT TO BE TRAVEL AGENTS WITH LITTLE KNOWLEDGE OF AMERICAN SCHOOLS IN KOREA ALONE THERE ARE MORE THAN 150 AGENTS MANY OF WHOM HAVE SPRUNG UP IN THE PAST THREE YEARS MISMATCHES ARE COMMON US EDUCATIONAL CONSULTANTS SAY JIM NOLAN A PHILADELPHIA CONSULTANT SAYS HE REPRESENTED A KOREAN BOY LAST YEAR WHO HAD BEEN PLACED BY A KOREAN AGENCY IN A SEVENTH DAY ADVENTIST BOARDING SCHOOL THIS KID WASN'T A SEVENTH DAY ADVENTIST SAYS MR NOLAN HE WAS UNCOMFORTABLE SOCIALLY AND WASN'T ALLOWED TO LISTEN TO MUSIC FOREIGN STUDENTS COMPLAIN THAT AGENTS MISINFORM THEM ABOUT SCHOOLS AT WINCHENDON YOSHITAKA MINAMI SAYS AN AGENT BACK HOME IN JAPAN WHOM HE PAID 2000 TOLD HIM THE SCHOOL HAD 10 JAPANESE STUDENTS AND HORSEBACK RIDING UPON ARRIVAL HE FOUND THERE WERE 36 JAPANESE STUDENTS AND NO RIDING AGENTS OFTEN CHARGE HEFTY FEES UP TO A YEAR'S TUITION TO FAMILIES FOR PREPARING APPLICATIONS OBTAINING VISAS AND MAKING TRAVEL ARRANGEMENTS SCHOOL OFFICIALS SAY THE AGENT WILL TELL THE FAMILY IT COSTS 30000 TO ATTEND THE SCHOOL SAYS MR COWAN THEY COLLECT THE CASH AND SEND OUR SCHOOLS 17000 ADMISSIONS DIRECTORS AND CONSULTANTS SAY THEY OFTEN CAN'T TRUST STUDENT TRANSCRIPTS SENT FROM AGENCIES THEY GET A PAPER PROFILE OF A STUDENT SAYING HE'S A GOOD STUDENT AND SPEAKS ENGLISH WELL SAYS MRS RAPP AND THE STUDENT ARRIVES ON THEIR DOORSTEP AND DOESN'T SPEAK A WORD TO COMBAT SUCH FRAUD THE ASSOCIATION OF BOARDING SCHOOLS HAS BEGUN OFFERING WORKSHOPS ON CREDENTIAL ASSESSMENT SAYS MR COWAN AND THE SECONDARY SCHOOL ADMISSION TEST BOARD WHICH ADMINISTERS ENTRANCE EXAMS THIS YEAR OFFERED A VERSION FOR INTERNATIONAL STUDENTS WITH A SECTION ON ENGLISH PROFICIENCY BANKING ON FOREIGN STUDENTS ISN'T RISK FREE IN 1989 PEDRO ARANGO THEN HEADMASTER AT SOUTH KENT SCHOOL IN SOUTH KENT CONN LAUNCHED A PLAN TO RECRUIT HUNDREDS OF FOREIGN STUDENTS TEACH THEM ENGLISH AND THEN FUNNEL THEM INTO SOUTH KENT AND OTHER BOARDING SCHOOLS HE SIGNED A FIVEYEAR LEASE ON A SUMMER CAMP IN WESTERN CONNECTICUT THEN THE OUTBREAK OF THE GULF WAR CREATED A FEAR OF TRAVEL SOME COUNTRIES RESTRICTED HIGHSCHOOL STUDENTS FROM STUDYING ABROAD AND SCHOOLS IN AUSTRALIA AND CANADA BEGAN AGGRESSIVELY WOOING ASIAN STUDENTS WITH CHEAPER PROGRAMS THE FEW STUDENTS WHO DID GO TO THE CAMP GENERALLY HATED THE SETTING AND WROTE HOME TO THEIR PARENTS THAT THEY WERE LIVING IN HUTS THERE'RE PEOPLE IN NEW YORK CITY WHO WOULD PAY THROUGH THE NOSE FOR THIS EXPERIENCE SAYS MR ARANGO BUT IT DIDN'T SELL IN SEOUL SO THE PROGRAM CLOSED IN 1991 MEANWHILE SOME SCHOOLS THAT HAVE LOADED UP ON FOREIGN STUDENTS ARE BEGINNING TO CUT BACK ON THEIR INTERNATIONAL ENROLLEES THE RISK IS THAT AS THE PERCENTAGE OF INTERNATIONAL STUDENTS RISES YOU MAKE THE SCHOOL UNATTRACTIVE TO THE NORMAL AMERICAN STUDENT SAYS EARL A SAMSON 3RD CHAIRMAN OF THE BOARD OF TRUSTEES AT DARROW SCHOOL I THINK MOST SCHOOLS ARE TRYING TO KEEP THE PERCENTAGE OF FOREIGN STUDENTS AT A 20 TO 25 LEVEL AT WINCHENDON SITTING IN HIS OFFICE ONCE PART OF THE MAIN LODGE OF A VACATION RESORT HEADMASTER MR LABELLE SAYS HE SEES NO PROBLEM WITH WINCHENDON'S 41 FOREIGNSTUDENT POPULATION HE SAYS THE FOREIGN STUDENTS ARE WELLSERVED THEY ARE ABLE TO IMPROVE THEIR ENGLISH AND VIRTUALLY ALL WHO GRADUATE GO ON TO COLLEGE MOREOVER HE SAYS IN A BOARDING SCHOOL THAT'S TUITIONDRIVEN YOU'VE GOT TO PAY THE BILLS SEE RELATED LETTERS LETTERS TO THE EDITOR THEY ARE THE WORLD WSJ APRIL 1 1994 9402250014 YY94 MM04 9404010159 940207 LETTERS TO THE EDITOR CUOMO A REAL SUPPLYSIDER NO ONE WHO READS YOUR EDITORIAL PAGE SHOULD BE SURPRISED AT ITS CANDID PARTISANSHIP HOWEVER THE EDITORIALPAGE PIECE BY HERBERT LONDON A REPUBLICAN CANDIDATE FOR NEW YORK GOVERNOR IN 1990 AND 1994 WAS MORE THAN PARTISAN IT WAS INACCURATE NEW YORK'S BORN AGAIN BIG SPENDER JAN 20 MR LONDON CONCEDES THAT UNDER GOV MARIO CUOMO NEW YORK HAS CUT THE RATE ON ITS PRINCIPAL TAX REVENUE THE INCOME TAX TO THE LOWEST LEVEL IN 30 YEARS NEVERTHELESS THERE'S THE IMPLICATION THAT TOTAL TAX REVENUES INCREASED ANYWAY AS I UNDERSTAND THE SUPPLYSIDE THEORY THAT'S WHAT IS SUPPOSED TO HAPPEN ON THE OTHER HAND THE REPUBLICAN POLICIES OF THE PAST DECADE WERE AN EMBARRASSMENT TO REAL SUPPLYSIDE PRODUCING 327 TAX INCREASES 249 ATTRIBUTABLE TO RONALD REAGAN AND 78 ASSOCIATED WITH GEORGE BUSH MOREOVER THE TAXES THEY RAISED WERE THE MOST REGRESSIVE AMONG THEM THE SOCIAL SECURITY PAYROLL TAX PAID BY ALL WORKING PEOPLE AND IMPOSING AN ONEROUS BURDEN ON SMALL BUSINESSES MR LONDON MISTAKENLY CLAIMS THAT THE STATE LEGISLATURE AND GOVERNOR HAVE DECREASED LOCAL GOVERNMENTS' REVENUES IN ORDER TO FINANCE STATE TAX CUTS UNLIKE THE FEDERAL GOVERNMENT OF THE 1980S THE STATE HAS INCREASED THE PORTION OF ITS BUDGET RETURNED TO LOCAL GOVERNMENTS FROM 60 IN 1983 TO MORE THAN 68 TODAY SCHOOL AID FOR EXAMPLE HAS GROWN BY ABOUT TWICE THE INFLATION RATE DURING THE CUOMO YEARS ALSO THE STATE PICKED UP MOST OF LOCAL LONGTERM MEDICAID COSTS IN 1984 SAVING LOCAL GOVERNMENTS SOME 7 BILLION TO DATE AND THE GOVERNOR HAS PROPOSED STATE TAKEOVER OF ALL MEDICAID COSTS THE FASTEST GROWING PORTION OF LOCAL BUDGETS UNFORTUNATELY MR LONDON'S COLLEAGUES IN THE REPUBLICANLED STATE SENATE HAVE REFUSED ASK MAYOR GIULIANI OF NEW YORK CITY WHICH OTHERWISE COULD HAVE BEEN ON THE WAY TO NET SAVINGS OF 275 BILLION BY 2000 UNDER GOV CUOMO'S MEDICAID PLAN THE SENATE HAS ALSO REFUSED TO CONSIDER PROPOSALS TO LIFT OTHER SPECIFIC MANDATES SAID TO HAVE FORCED LOCAL GOVERNMENTS TO RAISE TAXES BUT IN ATTEMPTING TO BLAME LOCAL TAX INCREASES ON EVERYONE ELSE MR LONDON LOSES SIGHT OF OTHER OPTIONS AVAILABLE TO COUNTY AND LOCAL GOVERNMENTS THESE INCLUDE WORKFORCE REDUCTIONS LIMITED SALARY INCREASES AND CONSOLIDATION ALL OF WHICH HAVE BEEN EMPLOYED TO CONTROL COSTS AT THE STATE LEVEL MR LONDON IS ALSO OFFBASE ON TAXES IF YOU COMBINE NEW YORK'S STATE TAXES WITH ALL OF NEW YORK CITY'S LOCAL TAXES AND THOSE OF NASSAU AND OTHER LOCAL GOVERNMENTS AS MR LONDON DID THEN THE TOTAL OF STATE AND LOCAL TAXES RANKS AMONG THE HIGHEST AS IT HAS SINCE LONG BEFORE GOV CUOMO'S TENURE AND OVER WHICH IN OUR HOMERULE STATE GOVERNORS HAVE LITTLE CONTROL BUT THE TOTAL STATE AND LOCAL TAX BURDEN PER 1000 IN PERSONAL INCOME FOR THE AVERAGE NEW YORK TAXPAYER IS LOWER THAN IT WAS 15 YEARS AGO MR LONDON IS DISCOMFITED BY OUR FOCUSING ON POSITIVE TRUTHS AND TRENDS ABOUT NEW YORK HE IS APPARENTLY ONE OF THOSE CONSERVATIVES WHO BELIEVE YOU CAN CURSE GOVERNMENT INTO ECONOMIC GROWTH WE FIND THE WHOLE TRUTH MORE COMFORTING AND MORE USEFUL THUS WE NOTE THAT SINCE 1982 DESPITE TWO NATIONAL RECESSIONS THE REAGAN PERIOD AND THE BUSH PERIOD NEW YORK HAS HAD A NET GAIN OF NEARLY 500000 JOBS AND 50000 BUSINESSES OF COURSE WE ARE STILL FEELING THE PAINS OF CORPORATE DOWNSIZING DEFENSE CUTBACKS AND RECESSIONRELATED BUSINESS FAILURE BUT WE ARE CLEARLY ON THE WAY BACK THE PROPOSED BUDGET FOR 199495 WILL PRODUCE OUR THIRD SURPLUS IN A ROW PRIVATIZE PART OF OUR GOVERNMENT RESERVE 311 MILLION IN THE CONTINGENCY FUND SET UP LAST YEAR ELIMINATE FEES AND REGULATIONS TO HELP BUSINESSES GROW ACCELERATE CAPITAL PROJECTS AND STRATEGIC INVESTMENTS ANDYESCUT TAXES AGAIN AND WE HOPE AS EVERY GOOD CONSERVATIVE SHOULD AND AS ARTHUR LAFER TOLD US THEY WOULD THAT OUR BUSINESS TAX CUTS WILL RAISE STILL MORE REVENUES SEE RELATED LETTER LETTERS TO THE EDITOR NEW YORK'S BUDGET IS SMOKE AND MIRRORS WSJ APRIL 1 1994 9402070027 YY94 MM04 9404010133 940224 PRUDENTIAL HAS NEW WOE UNLICENSED BROKERS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SCORES OF PRUDENTIAL SECURITIES INC BROKERS ARE SELLING MUTUAL FUNDS AND STOCKS WITHOUT PROPER BROKERAGE LICENSES IN VARIOUS STATES INTERNAL PRUDENTIAL COMPLIANCE DOCUMENTS SHOW AS A RESULT PRUDENTIAL ULTIMATELY COULD FACE THE POSSIBILITY OF RESCINDING OR CANCELING TRADES EXECUTED BY THE UNLICENSED BROKERS REGULATORS SAY THE BROKERAGE ARM OF PRUDENTIAL INSURANCE CO OF AMERICA SAYS IT HAS A TOTAL OF ABOUT 50000 BROKER REGISTRATIONS FOR ITS ROUGHLY 6000 BROKERS WE'VE HAD OUR SHARE OF PROBLEMS WITH REGISTRATION SAYS JOHN P MURRAY PRUDENTIAL'S DIRECTOR OF CORPORATERISK MANAGEMENT WE'RE IN THE PROCESS OF TIGHTENING UP AND FIXING IT WE'RE TRYING TO MAKE SURE EVERYBODY IN THE PLACE IS LICENSED HE SAYS ADDING THAT HE DOESN'T BELIEVE THE PROBLEM IS WIDESPREAD TO BE SURE MANY LARGE WALL STREET BROKERAGE FIRMS HAVE A NUMBER OF UNLICENSED BROKERS AT ANY GIVEN TIME INDEED THE SECURITIES AND EXCHANGE COMMISSION LAST YEAR FOUND THAT THE US UNITS OF JAPAN'S BIG FOUR BROKERAGE HOUSES HAD AMONG OTHER VIOLATIONS UNREGISTERED BROKERS BUT THE ISSUE IS PARTICULARLY PROBLEMATIC FOR PRUDENTIAL WHICH IS OPERATING UNDER INTENSE REGULATORY SCRUTINY AS A RESULT OF ITS LIMITEDPARTNERSHIP WOES PRUDENTIAL INSURANCE RECENTLY COMMISSIONED A STUDY BY THE ACCOUNTING FIRM COOPERS & LYBRAND EXAMINING AMONG OTHER THINGS THE REGISTRATION DEPARTMENT AT PRUDENTIAL SECURITIES AS PART OF THE REVIEW INDEPENDENT ACCOUNTANTS WILL COME IN AND STUDY THE FIRM'S REGISTRATION EFFORT PRUDENTIAL ALSO HIRED A FORMER EXECUTIVE FROM RIVAL MERRILL LYNCH & CO TO BUTTRESS ITS REGISTRATION CONTROLS BUT PRUDENTIAL HASN'T YET INFORMED REGULATORS OF THE PREDICAMENT PEOPLE FAMILIAR WITH THE MATTER SAY INSTEAD THE FIRM APPEARS TO HAVE PAID BROKERS WHO IMPROPERLY SOLD MUTUAL FUNDS WITHOUT PROPER LICENSES ACCORDING TO AN INTERNAL MEMO I HAVE BEEN INFORMED BY BRUCE KARP OF PRUDENTIAL'S REGISTRATION DEPARTMENT THAT TRADES WILL GO THROUGH EVEN IF THE BROKER ISN'T PROPERLY LICENSED SAYS AN AUG 16 1993 MEMO FROM ANITA WHELAN PRUDENTIAL'S MUTUALFUND COMPLIANCE DIRECTOR THE MEMO TO FRANK GIORDANO PRUDENTIAL'S MUTUALFUND GENERAL COUNSEL ADDED THAT MR KARP INFORMED MS WHELAN THAT THE UNLICENSED BROKERS ARE GETTING PAID IN HER MEMO MS WHELAN DIDN'T URGE THAT ANY STEPS BE TAKEN TO CORRECT THE SITUATION WHEN ASKED YESTERDAY WHETHER THE PRACTICE OF PAYING UNLICENSED BROKERS FOR THEIR TRADES IS A PROBLEM SHE REPLIED THAT'S A VALID CONCERN BUT I DON'T HANDLE LICENSING SHE DECLINED TO COMMENT FURTHER MR GIORDANO DIDN'T RETURN A TELEPHONE CALL SEEKING COMMENT PRUDENTIAL SAYS IT DISMISSED MR KARP LAST YEAR AFTER THE MEMO WAS WRITTEN FOR PERFORMANCE REASONS MR KARP COULDN'T BE REACHED FOR COMMENT PRUDENTIAL SAYS THE WHELAN MEMO SHOWS THAT THE FIRM WAS CONCERNED ABOUT THE PRACTICE WE'RE NOT IN THE BUSINESS OF PAYING COMMISSIONS TO PEOPLE WITHOUT LICENSES SAID MR MURRAY AS FOR ANY DISCUSSIONS WITH REGULATORS MR MURRAY SAID I DON'T KNOW WHETHER WE GO AROUND AND MAKE ANNOUNCEMENTS TO REGULATORS ABOUT THIS WE HAVE STARTED ON THE PROCESS OF COMING UP WITH A WHOLE BUNCH OF WAYS TO FIX UP THE PROBLEMS IN REGISTRATION IT ISN'T A SECRET AROUND HERE BY ANY STRETCH OTHER DOCUMENTS SHOW THAT SOME PRUDENTIAL MUTUALFUND SHAREHOLDERS HAVE BEEN SOLD TAXFREE MUNICIPALBOND FUNDS FOR THEIR INDIVIDUAL RETIREMENT ACCOUNTS INVESTORS AREN'T TAXED ON IRA FUNDS UNTIL THEY START WITHDRAWING MONEY FROM SUCH ACCOUNTS THIS PRACTICE RAISES QUESTIONS OF INVESTOR SUITABILITY THE SAME ISSUE AT THE HEART OF PRUDENTIAL'S LIMITEDPARTNERSHIP DEBACLE AS PREVIOUSLY REPORTED FEDERAL AND STATE REGULATORS HAVE ACCUSED PRUDENTIAL OF IMPROPERLY SELLING 815 BILLION OF PARTNERSHIPS IN THE 1980S THE INTERNAL DOCUMENTS SUGGEST THAT LAX OVERSIGHT AND COMPLIANCE AREN'T CONFINED TO PRUDENTIAL'S HIGHLY PUBLICIZED PARTNERSHIP SCANDAL BROKERS AND OTHERS WHO SELL SECURITIES MUST PASS REQUIRED TESTS BEFORE DOING BUSINESS THESE INCLUDE SOCALLED SERIES 6 TESTS FOR SELLING MUTUAL FUNDS AND SERIES 7 TESTS FOR SELLING STOCKS BESIDES THESE REQUIREMENTS BROKERS MUST BE REGISTERED IN STATES IN WHICH THEIR CLIENTS LIVE OR WHERE THEY ARE DOING BUSINESS THE INTERNAL DOCUMENTS SHOW THAT SOME PRUDENTIAL BROKERS ARE OPERATING WITHOUT PASSING THEIR REQUIRED SERIES TESTS AND OTHERS WITHOUT THEIR PROPER STATE LICENSING AT A MEETING OF BRANCH MANAGERS IN NEW YORK LATE LAST YEAR MR MURRAY SAID HE TOLD MANAGERS NOBODY SHOULD HAVE A LAISSEZFAIRE ATTITUDE TOWARD LICENSING EITHER YOU ARE OR YOU'RE NOT THERE'S NO INBETWEEN THE ISSUE OF UNLICENSED BROKERS DOESN'T APPEAR TO BE NEW AT PRUDENTIAL A FEB 22 1990 MEMO ENTITLED REGISTRATION ETC NEW COMPANY POLICY TOLD UNLICENSED PRUDENTIAL BROKERS THEY WOULD GET PAID IF THEY ARRANGED SIDE DEALS WITH OTHER BROKERS IF YOU DO A TRADE IN A STATE THAT YOU ARE NOT REGISTERED IN AND TURN THE TRADE OVER TO ANOTHER BROKER FOR COMMISSION PURPOSES THESE COMMISSIONS ARE NONREFUNDABLE YOU CAN MAKE A DEAL' WITH THE BROKER TO PAY THE COMMISSIONS IN A PERSONAL CHECK BUT NEW YORK WILL NOT JOURNAL THE COMMISSIONS OVER AFTER YOU ARE APPROVED IN THAT STATE PRUDENTIAL SAID IT ISN'T FAMILIAR WITH THE MEMO WHICH APPARENTLY WAS WRITTEN BY AN ATLANTA SALES MANAGER BUT IT SAID THAT PRACTICE WASN'T COMPANY POLICY STATE SECURITIES REGULATORS CURRENTLY ARE EXAMINING THE ALLEGATIONS OF UNLICENSED PRUDENTIAL BROKERS SELLING MUTUAL FUNDS AND ARE PREPARING REQUESTS FOR DOCUMENT FROM PRUDENTIAL ON THE MATTER PEOPLE FAMILIAR WITH THE ISSUE SAY ANY FAILURE TO REPORT PROBLEMS OF UNLICENSED BROKERS TYPICALLY IS VIEWED HARSHLY BY REGULATORS SPEAKING GENERALLY NANCY SMITH NEW MEXICO'S SECURITIES DIRECTOR SAID IF TRUE HAVING UNLICENSED BROKERS SELL SECURITIES IS A VERY SIGNIFICANT FAILURE AND IF IT'S COMPOUNDED BY A FAILURE OF THE SUPERVISORY SYSTEM AND THE LACK OF REPORTING ON THOSE VIOLATIONS THEN THAT MAKES IT A FAILURE OF EVEN GREATER DIMENSIONS MS SMITH ADDED WHEN YOU HAVE UNLICENSED AGENTS SELLING SECURITIES ONE WOULD EXPECT THE FIRM TO OFFER FULL RESCISSION TO THE INVESTORS ON THE MUNICIPALBOND ISSUE PRUDENTIAL SAYS IT HAS TAKEN STEPS TO INFORM INVESTORS OF THE PROBLEM IN AN AUG 4 1993 MEMO MS WHELAN THE FUND COMPLIANCE CHIEF SAID IT HAS COME TO MY ATTENTION THAT THERE MAY BE INSTANCES WHEN PRUDENTIAL MUTUALFUND SHAREHOLDERS ARE HOLDING PRUDENTIAL MUNICIPALBOND MUTUAL FUNDS IN IRA ACCOUNTS PRUDENTIAL SAYS IT IS LOOKING INTO THE MATTER THE FIRM HAS PREPARED A LETTER TO INVESTORS SAYING THAT AS IRAS INCLUDE TAX DEFERMENT UNTIL WITHDRAWALS COMMENCE THE CHOICE OF TAXFREE MUNICIPALS ARE GENERALLY NOT AS BENEFICIAL AS OTHER MEMBERS OF OUR MUTUALFUND FAMILY IN VIEW OF THIS YOU MAY WISH TO CONSIDER TAKING ADVANTAGE OF OUR FREE EXCHANGE PRIVILEGE INTO ANOTHER MEMBER OF OUR FUND FAMILY SEE RELATED LETTER LETTERS TO THE EDITOR UNLICENSED BROKERS IN PRUDENTIAL CASE WSJ APRIL 1 1994 9402240033 YY94 MM04 9404010045 940120 NEW YORK'S BORNAGAIN BIG SPENDER BY HERBERT LONDON AS I SAT IN THE NEW YORK STATE ASSEMBLY LISTENING TO GOV MARIO CUOMO'S STATE OF THE STATE ADDRESS TWO WEEKS AGO I HAD THE IMPRESSION THE GOVERNOR WAS AUDITIONING FOR A PART IN YET ANOTHER REMAKE OF INVASION OF THE BODY SNATCHERS FOR ROUGHLY ONE HOUR IT SEEMED THAT RONALD REAGAN INHABITED THE BODY OF MARIO CUOMO NONETHELESS THIS WEEK MR CUOMO PROPOSED A 625 BILLION BUDGET FOR 1994 THE LARGEST IN THE STATE'S HISTORY AND PROBABLY THE LARGEST IN THE US IN HIS ADDRESS THE NEW IMPROVED CUOMO SAID THE WAY TO CREATE JOBS IS TO LOWER CORPORATE TAXES AND HAVE A MORE HOSPITABLE ENVIRONMENT FOR BUSINESS THIS CLAIM OBVIOUSLY WAS MADE BY THE CUOMO FACSIMILE SINCE THE REAL MARIO CUOMO SPOKE AT THE DEMOCRATIC CONVENTION IN 1992 THAT MAN ARGUED THAT SUPPLYSIDE ECONOMICS LOWERING TAXES TO PROMOTE INVESTMENT WAS VOODOO ECONOMICS FOR 12 YEARS NEW YORK HAS BEEN IN A METAPHORICAL FIRESTORM NEW YORK HAS 72 OF THE NATION'S POPULATION AND 15 OF THE NATION'S ACCUMULATED DEBT IT HAS 185 OF THE MEDICAID EXPENDITURES WITH ONLY 8 OF THE MEDICAID RECIPIENTS IT HAS 34 OF THE NATION'S WELFARE RECIPIENTS 11 MILLION IN NEW YORK CITY ALONE FORTY PERCENT OF ALL THE JOBS LOST IN THIS COUNTRY SINCE 1989 WERE LOST HERE 572000 JOBS WERE RELOCATED OR DISAPPEARED GOV CUOMO RECENTLY HAS PRESENTED HIMSELF AS A LOWTAX GOVERNOR HE AND HIS STAFF HAVE NOTED THAT NEW YORK'S INCOMETAX RATE IS AT ITS LOWEST LEVEL IN 30 YEARS THAT NEW YORK RANKS 24TH AMONG STATES IN THE PERCENTAGE OF INCOME TAX PAID IN STATE TAXES THAT GOVERNMENT JOBS HAVE BEEN REDUCED BY 13 SINCE NOVEMBER 1990 AND THAT NEW YORK HELD THE LINE ON TAXES THROUGH THE PAST FOUR BUDGET YEARS THESE ARGUMENTS REPRESENT THE GOVERNOR'S MANTRA ABOUT HIS PERFORMANCE AND THE BASIS ON WHICH HIS NEXT CAMPAIGN WILL BE ORGANIZED BUT ARE THESE ARGUMENTS ACCURATE SINCE MR CUOMO BECAME GOVERNOR IN 1983 THE TAX RATE HAS INDEED GONE DOWN AS HE REPORTS BUT ACTUAL TAXES FOR EACH INDIVIDUAL HAVE GONE UP DRAMATICALLY IN PART THIS IS DUE TO STATE MANDATES THAT FORCE LOCALITIES TO BEAR THE FINANCIAL BRUNT OF GOVERNMENT REQUIREMENTS IN RESPONSE TO THESE STATE DEMANDS LOCALITIES HAVE TWO OPTIONS RAISE PROPERTY TAXES OR SALES TAXES THIS IS PRECISELY WHAT HAS BEEN DONE IN THE PAST 11 YEARS NEW YORK HAS THE HIGHEST COMBINED STATE AND LOCAL TAXES PER CAPITA IN THE NATION 3267 A RATE THAT IS 62 HIGHER THAN THE NATIONAL AVERAGE ACCORDING TO THIS MONTH'S MONEY MAGAZINE IF ONE CONSIDERS A TWOINCOME FAMILY OF FOUR WITH INCOME OF ROUGHLY 80000 THE TAX BILL IN NEW YORK STATE LEAVING OUT FEDERAL TAXES IS 11020 AS OPPOSED TO A 1694 TAB IN ALASKA NEW YORK'S 7875 INCOME TAX IS 54 ABOVE THE AVERAGE OF CONTIGUOUS STATES THE STATE'S 1035 CORPORATE TAX IS THE SECOND HIGHEST IN THE NATION AFTER CONNECTICUT THE DIFFERENCE BY THE WAY IS NEGLIGIBLE AND 53 ABOVE THE NATIONAL AVERAGE THE STATE DISCOURAGES BUSINESS ACTIVITY WITH ITS HIGH CORPORATE TAXES IT ALSO DOES SO WITH AN EFFECTIVE CAPITALGAINS RATE OF 365 IN NEW YORK CITY CAPITAL GAINS ARE TAXED AT AN ASTONISHING 3975 RATE THE HIGHEST IN THE NATION THOSE NUMBERS SUGGEST WHY PRIVATE CAPITAL IS BEING CROWDED OUT OF EXISTENCE BY THE EXPANSIVE PUBLIC SECTOR AND WHY MANY PEOPLE ARE LEAVING THE STATE THESE STATISTICS ALSO INDICATE WHY NEW YORK LAGS SIGNIFICANTLY BEHIND THE REST OF THE NATION IN JOB PRODUCTION FROM 1983 TO 1993 THE PRIVATESECTOR JOB FORCE INCREASED BY 4 IN NEW YORK AND CLOSE TO 25 NATIONWIDE IN THE 1980S NEW YORK RANKED 47 OUT OF THE 50 STATES IN JOB PRODUCTION HAD NEW YORK BEEN AT THE MEAN IT MIGHT WELL HAVE PAID ITS BILLS DESPITE THE GOVERNOR'S INSATIABLE APPETITE FOR SPENDING OF COURSE THAT WAS MR CUOMO BEFORE HIS RECENT TRANSFORMATION MR CUOMO HAS NOTED ACCURATELY I MIGHT ADD THAT GOVERNMENT JOBS HAVE BEEN REDUCED SINCE NOVEMBER 1990 BUT HE NEGLECTS TO POINT OUT TO UNWARY AUDIENCES THAT HE HAS BEEN GOVERNOR SINCE 1983 SINCE 1990 THE STATE WORK FORCE HAS BEEN REDUCED BY 17414 JOBS MOSTLY THROUGH ATTRITION EVEN AFTER THIS REDUCTION IS CALCULATED THE STATE GOVERNMENT HAS HAD AN INCREASE OF 15256 JOBS OR A 743 INCREASE SINCE 1983 NEW YORK HAS 6219 STATE AND LOCAL EMPLOYEES PER 10000 IN THE POPULATION THE HIGHEST AMONG INDUSTRIAL STATES AND 19 ABOVE THE NATIONAL AVERAGE LAST IS THE CLAIM THAT NEW YORK HELD THE LINE ON TAXES EVEN IF ONE DOESN'T VIEW MANDATES AS AN ENFORCED LOCAL TAX INCREASE THERE IS STILL THE MATTER OF STATE TAXES AND FEES IN THE PAST FOUR YEARS COUNTING THE SUSPENSION OF THE LAST YEAR OF THE PROMISED TAX CUT TAXES HAVE GONE UP MORE THAN 1 BILLION EACH YEAR OF COURSE MR CUOMO CLAIMS THAT FEES AREN'T TAXES IF HE ACCEPTS THAT PREMISE THEN HE CAN DISCUSS HOLDING THE LINE ON TAXES WITH A STRAIGHT FACE DESPITE TWO TAX CUTS DURING HIS TENURE AND A REDUCTION IN THE TAX RATE THERE STILL HAS BEEN AN INCREASE OF 137 IN TAXES FOR EVERY TAX DOLLAR CUT ON BALANCE IT'S UNDERSTANDABLE THAT MR CUOMO HAS BEEN TRANSFORMED INTO A BORNAGAIN TAX CUTTER HE ORCHESTRATED THE FAILURE OF NEW YORK AND NOW IS GROPING FOR A REMEDY MR LONDON A REPUBLICAN RAN FOR GOVERNOR OF NEW YORK IN 1990 AND IS A CANDIDATE FOR 1994 HE IS A PROFESSOR OF HUMANITIES AT NEW YORK UNIVERSITY SEE RELATED LETTER LETTERS TO THE EDITOR CUOMO A REAL SUPPLYSIDER WSJ FEB 7 1994 SEE RELATED LETTER LETTERS TO THE EDITOR NEW YORK'S BUDGET IS SMOKE AND MIRRORS WSJ APRIL 1 1994 9401200089 9402070169 YY94 MM02 YY94 MM04 9403310170 940331 MUTUAL FUNDS INVESTORS BAIL OUT OF BOND MUTUAL FUNDS AND SLOW THEIR DRIVE INTO STOCK FUNDS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS IN BOND MUTUAL FUNDS ARE BAILING OUT AND THE RECENT TORRENT OF MONEY GOING INTO STOCK FUNDS IS SLOWING SHARPLY MUTUALFUND EXECUTIVES SAY BLAME IT ON THE FALLING STOCK AND BOND MARKETS THESE RISING INTEREST RATES THEY'RE SHAKING PEOPLE UP SAYS ROBERT LEO A SENIOR VICE PRESIDENT AT MASSACHUSETTS FINANCIAL SERVICES IN BOSTON THE BIG NEWS THIS MONTH IS THE OUTFLOW FROM ALL SORTS OF TAXABLE AND TAXEXEMPT BOND FUNDS IT REPRESENTS A REVERSAL OF FEBRUARY'S BONDFUND INFLOWS WHICH PLUNGED TO 11 BILLION FROM 111 BILLION IN JANUARY ACCORDING TO A MONTHLY TALLY BY THE INVESTMENT COMPANY INSTITUTE A MUTUALFUND TRADE GROUP AT GIANT FIDELITY INVESTMENTS IN BOSTON THEY'RE MOVING FROM BOND FUNDS INTO MONEYMARKET FUNDS SAYS NEIL LITVACK EXECUTIVE VICE PRESIDENT MANY BONDFUND INVESTORS ARE PEOPLE WHO TRADED OUT OF CDS AND ARE SOMEWHAT DEPENDENT ON INCOME AND SIMPLY DON'T WANT TO TAKE ON RISK IN PERIODS OF MARKET VOLATILITY MARCH DATA AREN'T YET AVAILABLE FROM THE ICI BUT ACCORDING TO AMG DATA SERVICES INC IN ARCATA CALIF WHICH ESTIMATES FUNDINDUSTRY CASH FLOWS MORE THAN 700 MILLION A WEEK WAS FLOWING OUT OF TAXABLEBOND FUNDS IN THE MONTH THROUGH MARCH 23 MUNICIPALBOND FUNDS WERE LETTING GO OF MORE THAN 250 MILLION A WEEK MEANWHILE STOCK MUTUAL FUNDS PULLED IN 144 BILLION OF NEW CASH IN FEBRUARY DOWN 21 FROM THE RECORD 183 BILLION THEY RECEIVED IN JANUARY BUT STILL ONE OF THE BIGGEST MONTHS ON RECORD ACCORDING TO THE ICI STOCK FUNDS' HOLDINGS OF CASH IN FEBRUARY ROSE TO 89 OF ASSETS UP FROM 83 IN JANUARY THE CASHFLOW FIGURES EQUAL NEW SALES OF FUNDS MINUS REDEMPTIONS THEY INCLUDE THE NET EFFECT OF EXCHANGES WITHIN A FUND FAMILY BUT EXCLUDE REINVESTED DIVIDENDS SALES OF STOCK FUNDS ARE SLOWING AGAIN THIS MONTH T ROWE PRICE ASSOCIATES INC SCUDDER STEVENS & CLARK KEMPER CORP AND VANGUARD GROUP ALL SAID THAT THEY ARE SEEING LOWER CASH FLOW INTO STOCK FUNDS IN MARCH COMPARED WITH FEBRUARY AT FIDELITY STOCK FUNDS PULLED IN ABOUT 28 BILLION IN MARCH OFF FROM ABOUT 33 BILLION IN FEBRUARY AND FIDELITY'S BONDFUND OUTFLOWS ACCELERATED TO 500 MILLION IN MARCH FROM 400 MILLION IN FEBRUARY CHARLES SCHWAB A DISCOUNT BROKERAGE FIRM THAT SELLS MUTUAL FUNDS FROM DOZENS OF FUND GROUPS HAD NET SALES OF 460 MILLION THROUGH MARCH 28 WELL BELOW FEBRUARY'S 860 MILLION IN NET SALES THOSE FIGURES INCLUDE STOCK FUNDS AND BOND FUNDS NORMALLY MARCH IS ONE OF THE BIGGEST MONTHS OF THE YEAR FOR FUND SALES AS INVESTORS CONTRIBUTE TO INDIVIDUAL RETIREMENT ACCOUNTS THE FALLOFF IN CASH FLOWS INTO FUNDS AT VANGUARD GROUP VALLEY FORGE PA IS ATYPICAL FOR THIS TIME OF YEAR SAYS A SPOKESMAN THE MARKETS HAVE INVESTORS SPOOKED HOWEVER THERE ARE SIGNS THAT RETIREMENT MONEY IS ACTUALLY PROPPING UP WHAT WOULD OTHERWISE BE A STEEPER DROP IN CASH FLOW INTO FUNDS FIDELITY SAYS INFLOWS OF MONEY EARMARKED FOR RETIREMENT INCLUDING IRAS BUT ALSO CONTRIBUTIONS TO PENSION PLANS AND ROLLOVERS OF RETIREMENT SAVINGS ARE UP ABOUT 10 IN MARCH FROM FEBRUARY FIDELITY SAYS ABOUT 45 OF ITS CASH FLOWS NOW ARE RETIREMENT SAVINGS A FEW FUND GROUPS ARE REAPING HIGHER STOCKFUND SALES IN MARCH STATE STREET RESEARCH & MANAGEMENT A SUBSIDIARY OF METROPOLITAN LIFE INSURANCE CO SAYS MARCH IS TURNING INTO ITS BEST MONTH EVER FOR STOCKFUND INFLOWS UP 52 FROM FEBRUARY PUTNAM INVESTMENTS A SUBSIDIARY OF MARSH & MCLENNAN SAYS ITS STOCKFUND CASH FLOWS INCREASED 30 IN MARCH HOWEVER PUTNAM HAD OUTFLOWS FROM TAXABLE BOND FUNDS AND LOWER INFLOWS INTO TAXEXEMPT BOND FUNDS FUNDS THAT INVEST IN OVERSEAS STOCKS WERE LAST YEAR'S HEROES AND IN FEBRUARY THEY GOT ABOUT HALF OF ALL STOCKFUND FLOWS BUT THEIR POPULARITY IS DROPPING SHARPLY SCUDDER T ROWE PRICE AND VANGUARD ARE TAKING IN LESS INTERNATIONALSTOCK FUND MONEY WHILE FIDELITY IS HAVING OUTFLOWS FUNDS INVESTING IN SOME OF THE HARDERHIT MARKETS OF DEVELOPING NATIONS ESPECIALLY IN THE PACIFIC ARE SEEING INVESTORS FLEE AT VARIOUS FUND GROUPS INDEED SOME OF THE FUNDS THAT HAVE BEEN HIT THE HARDEST BOTH IN PERFORMANCE AND INVESTOR OUTFLOWS ARE SOME OF LAST YEAR'S CHAMPIONS PEOPLE CHASE PERFORMANCE SAYS LAURA PARSONS A VICE PRESIDENT AT INVESCO FUNDS GROUP IN DENVER A UNIT OF INVESCO MIM PLC THE FUNDS THAT ARE DOING WELL THIS YEAR ARE GOLD AND TECHNOLOGY WHICH ATTRACTED THE LARGE SUMS AT INVESCO IN MARCH INVESCO IS GETTING ABOUT AS MUCH CASH AS IT GOT IN FEBRUARY ALTHOUGH IT IS HAVING OUTFLOWS FROM FUNDS INVESTING IN THE PACIFIC BASIN EUROPE AND IN US FINANCIALSERVICES STOCKS UNLIKE MOST OTHER GROUPS INVESCO SAW DECLINES IN MONEYMARKET FUNDS AS INVESTORS SWITCHED MONEY INTO STOCK FUNDS IN THE BOND ARENA WHILE MOST OF THE DEPARTING BONDFUND INVESTORS ARE HEADING FOR THE SHELTER OF CASH SOME ARE ACTUALLY GOING INTO MORE SPECULATIVE INVESTMENTS SUN LIFE ASSURANCE CO OF CANADA'S MASSACHUSETTS FINANCIAL SERVICES UNIT AND FIDELITY ARE PULLING MORE MONEY INTO THEIR JUNKBOND FUNDS WHICH INVEST IN THE HIGHYIELDING BONDS OF COMPANIES WITH SPECULATIVE CREDIT RATINGS PEOPLE SEEM TO BE REACHING OUT FOR YIELD A LITTLE BIT IN TERMS OF GOING TO THE JUNKBOND MARKET SAYS MR LITVACK INVESTOR PLANNING SOME OTHER FUND GROUPS HOWEVER ARE HAVING OUTFLOWS FROM JUNKBOND FUNDS ACCORDING TO THE ICI GOVERNMENTBOND AND GINNIE MAE MORTGAGE FUNDS HAD HEAVY OUTFLOWS IN FEBRUARY AS DID LONGTERM MUNICIPALBOND FUNDS THE FLOW OF CASH INTO GLOBALBOND FUNDS DROPPED PRECIPITOUSLY SOME OF THE BONDFUND MONEY WAS GOING INTO MONEYMARKET FUNDS IN FEBRUARY INVESTORS TRANSFERRED 45 BILLION OUT OF BOND FUNDS INTO MONEYMARKET OR STOCK FUNDS IN THE SAME FUND FAMILY A SURVEY OF INVESTORS BY THE UNIVERSITY OF MICHIGAN DONE ON BEHALF OF FIDELITY SAW A RISE IN ONE AREA OF INVESTOR SENTIMENT IN MARCH AS MORE INVESTORS EXPECTED AN IMPROVING US ECONOMY BUT THE PERCENTAGE OF INVESTORS PLANNING TO BUY STOCK FUNDS IN THE NEAR FUTURE FELL TO 36 FROM 54 IN FEBRUARY 9403310169 940331 MICHAELS STORES POSTS GAINS IRVING TEXAS MICHAELS STORES INC SAID ITS SALES ROSE 43 IN MARCH TO 523 MILLION FROM 365 MILLION A YEAR AGO THE ARTS AND CRAFTS RETAILER SAID THAT SALES AT STORES OPEN FOR MORE THAN ONE YEAR INCREASED 12 9403310168 940331 FISCAL 4THPERIOD LOSS IS POSTED BY COPLEY PHARMACEUTICAL INC CANTON MASS COPLEY PHARMACEUTICAL INC REPORTED A FISCAL FOURTHQUARTER NET LOSS OF 85 MILLION OR 45 CENTS A SHARE REFLECTING THE COSTS OF A DRUGPRODUCT RECALL AND OTHER NONRECURRING CHARGES COPLEY SAID ITS RECALL OF ALBUTEROL AN ASTHMA MEDICATION THAT WAS CONTAMINATED WITH BACTERIA REDUCED NET INCOME FOR THE QUARTER ENDED JAN 31 BY 48 MILLION OR 26 CENTS A SHARE THE RECALL COST 8 MILLION BEFORE TAXES COPLEY SAID IT CAN'T ESTIMATE THE COSTS OF LITIGATION RELATED TO THE RECALL WHICH HAS GENERATED A NUMBER OF LAWSUITS INCLUDING SOME ALLEGING THAT ALBUTEROL USERS DIED FROM USING THE INHALANT IT DIDN'T TAKE ANY CHARGE FOR THAT LITIGATION COPLEY A MAKER OF GENERIC PHARMACEUTICALS SAID REVENUE FOR THE QUARTER ROSE 15 TO 217 MILLION FROM 188 MILLION IN THE YEAREARLIER QUARTER COPLEY REPORTED NET INCOME OF 4 MILLION OR 21 CENTS A SHARE THIS YEAR BESIDES THE RECALL COPLEY ALSO TOOK CHARGES OF 73 MILLION OR 40 CENTS A SHARE TO SETTLE SHAREHOLDER LITIGATION RELATED TO A 1991 REPURCHASE OF SHARES COPLEY RECOGNIZED NONRECURRING CHARGES OF 29 MILLION OR 16 CENTS A SHARE RELATED TO HOECHST CELANESE CORP'S 546 MILLION ACQUISITION OF A 51 STAKE IN A TENDER OFFER LAST OCTOBER HOECHST CELANESE IS A UNIT OF GERMANY'S HOECHST AG IN THE YEAREARLIER QUARTER COPLEY HAD ONETIME CHARGES OF 18 MILLION FOR LITIGATION SETTLEMENT AND 18 MILLION FOR COSTS OF COLLABORATING ON RESEARCH WITH ANOTHER COMPANY COPLEY SAID THAT WITHOUT THE NONRECURRING CHARGES PROFIT WOULD HAVE BEEN 59 MILLION OR 31 CENTS A SHARE IN THE 1994 QUARTER FOR THE YEAR ENDED JAN 31 COPLEY REPORTED NET INCOME OF 64 MILLION OR 34 CENTS A SHARE DOWN 48 FROM 123 MILLION OR 83 CENTS A SHARE THE YEAR BEFORE SALES ROSE 66 TO 863 MILLION FROM 52 MILLION IN NASDAQ STOCK MARKET TRADING YESTERDAY COPLEY STOCK ROSE 50 CENTS OR 2 TO CLOSE AT 25 A SHARE 9403310167 940331 CORPORATE FOCUS BAXTER SEEKS HIT PRODUCTS AND SWINGS THE JOB AX AGAIN HOSPITALSUPPLY BUSINESS GETS LESS ATTENTION AS FIRM ACTS TO BOOST STOCK BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL BAXTER INTERNATIONAL INC IS HANDING OUT THE FIRST PINK SLIPS IN A WORKFORCE REDUCTION OF 4500 IF THIS HAS A FAMILIAR RING TO IT IT SHOULD THIS RESTRUCTURING ORIGINALLY ANNOUNCED LAST NOVEMBER IS THE FOURTH ONE FOR THE DEERFIELD ILL MEDICAL CONCERN SINCE 1984 AND THE THIRD SINCE BAXTER MERGED IN 1985 WITH AMERICAN HOSPITAL SUPPLY CORP SOME 12000 JOBS ALREADY WERE AXED IN THESE CUTBACKS AND JUST SINCE 1990 RESTRUCTURING CHARGES HAVE TOTALED ABOUT 13 BILLION VERNON R LOUCKS JR BAXTER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER INTENDS TO DIRECT MORE BAXTER FUNDS TOWARD THE DEVELOPMENT OF EMERGING BUSINESSES CENTERING ON KIDNEYDIALYSIS CARDIOVASCULAR AND BIOTECHNOLOGY PRODUCTS THESE PROMISE STRONGER PROFIT PROSPECTS THAN DOES BAXTER'S BELEAGUERED CORE HOSPITALSUPPLY DIVISION THE COMPANY'S CURRENT GOAL HE SAYS IS TO DELIVER ANNUAL EARNINGS GROWTH IN THE HIGH SINGLE DIGITS BUT BAXTER'S PREVIOUS RESTRUCTURING EFFORTS HAVE GENERATED LESSTHANSPARKLING RESULTS WHILE THE 1986 AND 1990 MOVES LOPPED OFF MORE THAN 11000 JOBS WORLDWIDE THE TOTAL NUMBER OF BAXTER WORKERS HAS STAYED ROUGHLY CONSTANT UNTIL NOW AT A LITTLE OVER 60000 AS NEW EMPLOYEES WERE HIRED ELSEWHERE IN THE COMPANY ANALYSTS SAY THE RESTRUCTURINGS PROBABLY MADE SENSE BUT THAT THEY DIDN'T GO FAR ENOUGH AND DIDN'T SOLVE BAXTER'S PROBLEMS THE REALITY IS THAT BAXTER HAS HAD TO COME BACK AND DO MORE SAYS ANALYST DANIEL LEMAITRE OF COWEN & CO THEY HAVE NOT HIT THEIR TARGETED HEADCOUNT REDUCTIONS IN THE PAST MR LEMAITRE NOTES THAT BAXTER'S STOCK DOES WELL IN THE YEAR AFTER A RESTRUCTURING BUT OVER A PERIOD OF SEVERAL YEARS ITS STOCKPRICE PERFORMANCE HAS BEEN LESS THAN STELLAR IN THE FIVE YEARS ENDED DEC 31 ACCORDING TO BAXTER'S LATEST PROXY STATEMENT THE COMPANY RECORDED A TOTAL RETURN YEAREND STOCK PRICE PLUS REINVESTED DIVIDENDS TO SHAREHOLDERS OF 745 COMPARED WITH 97 FOR THE S&P 500 COMPOSITE INDEX AND 72 FOR STANDARD & POOR'S MEDICAL PRODUCTS AND SUPPLIES INDEX THE FIGURES ARE BASED ON AN INVESTMENT MADE ON DEC 31 1988 WEIGHTED BY MARKET CAPITALIZATION BAXTER'S 1992 DIVIDEND INCLUDES THE STOCK DIVIDEND FOR CAREMARK INTERNATIONAL INC WHICH BAXTER SPUN OFF IN 1992 BAXTER'S YEAREARLIER PROXY SHOWED A MORE UNFAVORABLE COMPARISON WHEN THE COMPARATIVE INVESTMENTS WERE MADE OVER A FIVEYEAR PERIOD ENDED DEC 31 1992 BAXTER SHARES FETCHED A CUMULATIVE TOTAL RETURN OF 77 COMPARED WITH 109 FOR THE S&P 500 INDEX AND 113 FOR COMPANIES IN THE S&P MEDICAL PRODUCTS AND SUPPLIES INDEX FROM JAN 2 1986 THE BEGINNING OF THE FIRST FULL YEAR AFTER THE MODERN BAXTER EMERGED FROM THE AMERICAN HOSPITAL MERGER BAXTER SHARES ROSE TO YESTERDAY'S CLOSING PRICE OF 22875 FROM 1550 BY CONTRAST THE DOW JONES INDUSTRIAL AVERAGE MORE THAN DOUBLED TO YESTERDAY'S LEVEL OF 362675 FROM 1538 DURING THE SAME TIME PERIOD SINCE THE AMERICAN HOSPITAL MERGER BAXTER HASN'T BEEN A VERY GOOD INVESTMENT SAYS ANALYST KENNETH ABRAMOWITZ OF SANFORD C BERNSTEIN & CO WHEN YOU COMPARE BAXTER'S PERFORMANCE AFTER 1991 WITH THE MARKET WE COMPARE UNFAVORABLY AGREES HARRY M KRAEMER BAXTER'S SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OUR PERFORMANCE IN THE PAST TWO YEARS HAS BEEN POOR BAXTER SHARES TRADED AS HIGH AS 4025 DURING THE FIRST QUARTER OF 1992 LAST FALL AT LEAST TWO DIRECTORS VIEWED BAXTER'S SITUATION AS SERIOUS ENOUGH THAT THEY FAVORED DUMPING MR LOUCKS ACCORDING TO A PERSON FAMILIAR WITH THESE EVENTS BUT THESE DIRECTORS DIDN'T SWAY THE REST OF THE BOARD AND ONE OF THEM WILBUR H GANTZ SUBSEQUENTLY RESIGNED MR GANTZ DECLINES COMMENT IN MR KRAEMER'S VIEW HOWEVER BAXTER IS ABOUT TO REVERSE ITS RECENT FORTUNES THE COMPANY EXPECTS TO GARNER SAVINGS FROM LAYING OFF SALESPEOPLE AND OTHER EMPLOYEES DEVOTED TO SELLING HOSPITAL LABORATORY AND SURGICAL SUPPLIES CURRENTLY SEVERAL BAXTER SALESPEOPLE VISIT THE SAME HOSPITAL TO SELL DIFFERENT PRODUCTS AND MR KRAEMER CONTENDS GREATER EFFICIENCY NOW WILL BE ACHIEVED HE SAYS THE COMPANY AIMS TO ACHIEVE SAVINGS OF NEARLY 400 MILLION BY LATE 1996 SALARIES SAVED FROM THE CONSOLIDATED US HOSPITAL SALES FORCE WILL BE PLOWED BACK INTO RESEARCH ON POSSIBLE BLOCKBUSTER PRODUCTS LIKE AN ARTIFICIALBLOOD SUBSTITUTE WHICH COULD HELP ALLEVIATE BLOOD SHORTAGES AND AIDS AND HEPATITIS INFECTIONS IN DONATED BLOOD UNLIKE THE 1990 RESTRUCTURING WHICH FOCUSED ON CLOSING MANUFACTURING PLANTS THE CURRENT REALIGNMENT WILL INVEST MORE RESOURCES INTO POSSIBLE HOME RUNS SAYS MR KRAEMER LIKE THE ARTIFICIALBLOOD VENTURE ANOTHER SUCH EFFORT INVOLVES THE LEFTVENTRICULAR ASSIST DEVICE BEING DEVELOPED AT BAXTER'S NOVACOR UNIT THE COMPANY BELIEVES THE HEARTBEATASSIST MACHINE CURRENTLY IN CLINICAL TRIALS AND USED IN PATIENTS AWAITING CARDIACTRANSPLANT SURGERY CAN ULTIMATELY SERVE THOUSANDS OF OTHER PATIENTS WITH IMPAIRED HEART FUNCTIONS MEANWHILE THE CORE US HOSPITAL BUSINESS REPRESENTING ABOUT HALF OF BAXTER'S 89 BILLION IN ANNUAL SALES HAS DETERIORATED FALLING SHORT OF MEETING THE COMPANY'S INTERNAL PROFIT GOAL FOR 1993 MANY FORMER AMERICAN HOSPITAL SUPPLY EXECUTIVES WHO REMAINED AT BAXTER SAY THE HOSPITALSUPPLY BUSINESS HAS WEAKENED BECAUSE MANY SEASONED SALES REPRESENTATIVES LEFT BAXTER IN PART BECAUSE THEIR COMMISSIONINCENTIVE PACKAGE WAS CURTAILED BAXTER SAYS THAT REDUCTION WAS INTENDED TO LOWER COMPENSATION TO LEVELS PREVAILING THROUGHOUT THE INDUSTRY SIMULTANEOUSLY A COMPETITOR OWENS & MINOR INC HAS EXPANDED TO THE POINT THAT IT NOW POSES A REAL NATIONWIDE THREAT FOR THE FIRST TIME MR LEMAITRE THE COWEN & CO ANALYST BELIEVES THE CURRENT RESTRUCTURING DOESN'T REMEDY A FUNDAMENTAL HURDLE FACING THE HOSPITAL DIVISION THAT OBSTACLE HE MAINTAINS IS THAT HOSPITALS WORRY THAT BAXTER WHICH SELLS BOTH ITS OWN HIGHMARGIN PRODUCTS AND THE LOWERMARGIN PRODUCTS MANUFACTURED BY OTHER COMPANIES IS WORKING HARDER AT PUSHING ITS OWN PRODUCTS THAN AT DELIVERING TO HOSPITALS THE BRANDS OF PRODUCTS THEY ACTUALLY ORDERED BAXTER OFFICIALS DISPUTE THAT THIS HAPPENS BUT SAYS MR LEMAITRE I STILL HEAR FROM HOSPITALS THAT THEY ARE SUSPICIOUS BAXTER TRIES TO GET ITS OWN PRODUCTS ONTO THE DELIVERY SKIDS HOSPITALS SIMPLY DON'T WANT TO DEAL WITH THIS MULTIPLE COMPETITORS IN VARIOUS BUSINESS LINES INCLUDING OWENS & MINOR INC ABBOTT LABORATORIES ST JUDE MEDICAL INC MEDTRONIC INC AND THERMO CARDIOSYSTEMS INC 9403310166 940331 COMPUSA SALES SURGE DALLAS COMPUSA SAID NET SALES ROSE 63 IN ITS FISCAL THIRD QUARTER ENDED SATURDAY TO 599 MILLION FROM 367 MILLION A YEAR EARLIER THE COMPUTER RETAILER SAID THAT SALES AT STORES OPEN MORE THAN ONE YEAR ROSE 10 IN THE FIRST NINE MONTHS OF FISCAL 1994 SALES ROSE 65 TO 157 BILLION FROM 954 MILLION SAMESTORE SALES WERE UP 13 9403310165 940331 INTERNATIONAL SOUTH KOREAN INDUSTRIAL OUTPUT SEOUL SOUTH KOREA SOUTH KOREA'S INDUSTRIAL OUTPUT FELL 41 IN FEBRUARY FROM JANUARY ENDING THE RISING STREAK BEGUN IN SEPTEMBER 1993 THE KOREA STATISTICAL OFFICE SAID THE OFFICE BLAMED THE DECLINE LARGELY ON A REDUCED NUMBER OF WORKING DAYS BECAUSE OF THE FIVEDAY LUNAR NEW YEAR HOLIDAY 9403310164 940331 UNITRODE 500000SHARE BUYBACK BILLERICA MASS UNITRODE CORP SAID IT REPURCHASED 500000 SHARES OR ABOUT 4 OF ITS COMMON STOCK FROM ALLIEDSIGNAL INC ITS LARGEST SHAREHOLDER THROUGH A PRIVATE TRANSACTION THE PURCHASE PRICE WASN'T DISCLOSED FOLLOWING THE RETIREMENT OF THE SHARES UNITRODE SAID IT WILL HAVE 121 MILLION SHARES OUTSTANDING THE COMPANY IS A MAKER OF SEMICONDUCTOR DEVICES FOLLOWING THE TRANSACTION ALLIED HOLDS 1961700 SHARES OR 163 OF UNITRODE'S COMMON SHARES OUTSTANDING A SPOKESWOMAN SAID 9403310163 940331 PARTNERS OIL MERGER TALKS DERAIL OKLAHOMA CITY PARTNERS OIL CO SAID MERGER NEGOTIATIONS WITH MIDWEST ENERGY COS OF TULSA OKLA HAVE BEEN TERMINATED THE OIL AND NATURALGAS COMPANY ALSO SAID MIDWEST ENERGY NO LONGER PLANS TO ACQUIRE THE 382 SHAREHOLDER INTEREST IN PARTNERS OIL HELD BY MAGIC CIRCLE ENERGY CORP A CLOSELY HELD OIL AND NATURALGAS COMPANY BASED IN OKLAHOMA CITY A SPOKESMAN FOR MIDWEST ENERGY ALSO AN OILANDGAS CONCERN SAID IT AND PARTNERS OIL FAILED TO AGREE ON TERMS FOR THE MERGER A PARTNERS OIL SPOKESMAN WASN'T AVAILABLE IMMEDIATELY FOR COMMENT 9403310162 940331 INTERNATIONAL TELEFONOS DE MEXICO WAGE PACT MEXICO CITY MEXICAN TELECOMMUNICATIONS GIANT TELEFONOS DE MEXICO SA OR TELMEX SAID IT SIGNED A NEW ANNUAL WAGE AND BENEFITS AGREEMENT WITH ITS PRINCIPAL LABOR UNION THE AGREEMENT PROVIDES FOR A 5 NOMINAL INCREASE IN WAGES AND A 3 NOMINAL INCREASE IN BENEFITS TELMEX AND THE UNION ALSO RENEWED THEIR SOCALLED PRODUCTIVITY AGREEMENT WHICH PROVIDES INCENTIVES FOR WORKER PRODUCTIVITY INCREASES 9403310161 940331 AVNET ACQUIRES DEMICO OF ITALY GREAT NECK NY AVNET INC SAID IT COMPLETED THE ACQUISITION OF THE ASSETS AND BUSINESSES OF DEMICO SPA OF MILAN AVNET SAID DEMICO IS A DISTRIBUTOR OF ELECTRONIC PARTS WITH 25 MILLION IN SALES FOR 1993 AVNET IS ALSO A DISTRIBUTOR OF ELECTRONIC COMPONENTS TERMS WEREN'T DISCLOSED 9403310159 940331 VIEWLOGIC SLATES ACQUISITION MARLBORO MASS VIEWLOGIC SYSTEMS INC SAID IT AGREED TO ACQUIRE CHRONOLOGIC SIMULATION LOS ALTOS CALIF FOR 265 MILLION OF VIEWLOGIC STOCK CHRONOLOGIC MAKES A DIGITAL SIMULATOR FOR THE ELECTRONIC DESIGN AUTOMATION MARKET IT HAD NET INCOME LAST YEAR OF 700000 ON REVENUE OF 44 MILLION VIEWLOGIC WHICH MAKES ELECTRONIC DESIGN AUTOMATION SYSTEMS USED BY ELECTRICAL ENGINEERS REPORTED NET INCOME OF 124 MILLION LAST YEAR ON REVENUE OF 935 MILLION 9403310158 940331 TECHNOLOGY & HEALTH GOV WILSON SIGNS COMPROMISE LAW ON AUTO EMISSIONS BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL IN AN ACTION WITH POSSIBLE IMPLICATIONS FOR OTHER STATES CALIFORNIA GOV PETE WILSON SIGNED INTO LAW A COMPROMISE AGREEMENT WITH THE FEDERAL GOVERNMENT THAT REVAMPS AUTOEMISSIONS TESTING IN HIS STATE AS REPORTED CALIFORNIA HAD BEEN RESISTING NEW EMISSIONSTESTING RULES ISSUED BY THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY THAT WOULD HAVE TAKEN AWAY THE TESTING WORK FROM SEVERAL THOUSAND SERVICE STATIONS AND REPAIR SHOPS AND DIRECTED IT TO A RELATIVELY SMALL NUMBER OF LARGE TESTONLY FACILITIES OFFICIALS IN SEVERAL OTHER STATES WHO ALSO OPPOSE THE NEW EPA RULES HAVE BEEN CLOSELY WATCHING THE OUTCOME OF THE CALIFORNIA BATTLE UNDER THE COMPROMISE SIGNED BY GOV WILSON EXISTING TEST LOCATIONS WILL BE ALLOWED TO TEST 70 OF THE CARS CHECKED IN 1995 AND AT LEAST 40 OF THE CARS TESTED IN EACH OF THE NEXT TWO YEARS THE REMAINING CARS WILL BE TESTED BY THE NEW LARGER EXAMINATION FACILITIES WHICH HAVE YET TO BE BUILT THE NEW LAW RUNS FOR THREE YEARS AFTER WHICH THE ARRANGEMENT WILL BE REVIEWED EPA OFFICIALS SAY THE COMPROMISE WAS HAMMERED OUT AFTER HUNDREDS OF SMALL BUSINESS OWNERS IN THE AUTO TESTING AND REPAIR INDUSTRY WAGED INTENSIVE LOBBYING CAMPAIGNS BEFORE STATE AND FEDERAL OFFICIALS TO BLOCK THE NEW EPA RULES IN A STATEMENT GOV WILSON HAILED THE COMPROMISE AS WINWIN FOR CALIFORNIA THE GOVERNOR'S STATEMENT SAID HE HAD STRONGLY OPPOSED AN EARLIER EPA PLAN CALLING FOR 100 OF THE 400 MILLIONAYEAR MARKET TO BECOME TEST ONLY THE EPA HAS MAINTAINED THAT NEW MORE SOPHISTICATED TESTING FACILITIES ARE NEEDED TO BETTER MONITOR CARS EPA OFFICIALS SAY UNDER THE NEW PLAN SMOG TESTS AT EXISTING FACILITIES WILL COST ABOUT 50 UP FROM A CURRENT AVERAGE OF 32 THE INCREASE WILL COVER THE COST OF CARRYING OUT THE COMPROMISE INCLUDING NEW ANTIFRAUD PROVISIONS AIMED AT PREVENTING TAMPERING WITH THE TESTS TESTS AT THE NEW FACILITIES WILL COST 3040 IN CALIFORNIA A CAR MUST BE TESTED ONCE EVERY TWO YEARS OFFICIALS IN OTHER STATES SAY THEY ARE STILL STUDYING THE CALIFORNIA COMPROMISE TO SEE WHAT APPLICABILITY IT MIGHT HAVE TO THEIR OWN AUTOEMISSIONS TESTING PLANS 9403310157 940331 INTERNATIONAL CREDIT LYONNAIS LOSSES FOCUS ATTENTION ON BUSINESS DECISIONS LINKED TO POLITICS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS HUGE LOSSES INCURRED BY FRANCE'S BIGGEST BANK STATEOWNED CREDIT LYONNAIS ARE FOCUSING ATTENTION ON THE DANGERS OF ALLOWING POLITICS TO INFLUENCE AND EVEN DICTATE BUSINESS DECISIONS AN OLD TRADITION HERE AMID AN ACRIMONIOUS DEBATE OVER WHO IS TO BLAME FOR THE LOSSES ESTIMATED AT 25 BILLION FRANCS 436 BILLION LAST YEAR THE GOVERNMENT YESTERDAY OFFICIALLY MADE A SCAPEGOAT OF THE BANK'S FORMER CHAIRMAN JEANYVES HABERER A CABINET MEETING AGREED TO FIRE MR HABERER FROM HIS CURRENT JOB AS HEAD OF A SMALLER STATEOWNED BANK CREDIT NATIONAL SA THE GOVERNMENT HAD APPOINTED HIM TO THAT POSITION JUST LAST NOVEMBER WHEN HE WAS PUSHED OUT OF CREDIT LYONNAIS AS PART OF A RESHUFFLE OF TOP POSTS AT STATE COMPANIES THE CABINET ACCUSED MR HABERER 61 YEARS OLD OF MAKING SERIOUS MANAGEMENT ERRORS DURING HIS FIVE YEARS AT CREDIT LYONNAIS ERRORS THAT NICOLAS SARKOZY THE GOVERNMENT SPOKESMAN SAID MAKE IT DIFFICULT FOR THE STATE NOT TO DRAW THE CONSEQUENCES MR HABERER HAS FEW FORTHRIGHT DEFENDERS BUT MANY SAY IT'S NOT FAIR TO SINGLE HIM OUT FOR BLAME IN A STATEMENT HE HIMSELF ACKNOWLEDGED MAKING MISTAKES BUT HE ALSO SAID THE PROBLEMS CAME ABOUT PARTLY BECAUSE HE WAS CARRYING OUT INSTRUCTIONS FROM THE GOVERNMENT PHILIPPE AUBERGER THE HEAD OF THE PARLIAMENT'S FINANCE COMMITTEE CHARGED THAT THE BANK HAD BEEN SUBJECT TO POLITICAL INFILTRATION AND ADDED EVERYONE KNOWS THAT THE ACCOUNTS CREDIT LYONNAIS HAS PRESENTED FOR SEVERAL YEARS WERE FALSE OTHER DEPUTIES NOTABLY FRANCOIS D'AUBERT A LONGTIME CRITIC OF THE BANK BLAME LAX OVERSIGHT BY THE NATION'S TREASURY AND BANKING COMMISSION WHICH GRAVELY UNDERESTIMATED THE PROBLEMS WITH CREDIT LYONNAIS'S LOAN PORTFOLIO UNTIL VERY RECENTLY HOWEVER A SENIOR GOVERNMENT OFFICIAL FAMILIAR WITH THE SITUATION SAYS THAT THE OVERSIGHT WAS DELIBERATELY LAX BECAUSE SUCCESSIVE GOVERNMENTS WANTED IT THAT WAY AUTHORITIES WERE TOLD TO LEAVE THE BANK ALONE THE OFFICIAL SAYS CREDIT LYONNAIS CERTAINLY DIDN'T REFUSE TO BAIL OUT COMPANIES THAT GOVERNMENTS WANTED RESCUED IN THE EARLY 1990S THE BANK GAVE BADLY NEEDED INFUSIONS OF CAPITAL TO OTHER STATEOWNED CORPORATIONS INCLUDING STEELMAKER USINORSACILOR SA AND AEROSPATIALE SA EVEN THOUGH THE COMMERCIAL BENEFITS OF DOING SO WEREN'T OBVIOUS MOREOVER SOME OF THE BANK'S BIGGEST PROBLEMS DERIVE FROM LOANS TO PEOPLE WHO WERE POLITICALLY WELLCONNECTED BUT WHOSE FINANCES WERE LESS THAN TRANSPARENT THEY INCLUDE THE LATE ROBERT MAXWELL THE ITALIAN FINANCIER FLORIO FIORINI CURRENTLY IN JAIL IN SWITZERLAND ON CHARGES OF FRAUDULENT BANKRUPTCY IT'S IMPOSSIBLE TO GAUGE JUST HOW MUCH OF THE BANK'S BUSINESS WAS POLITICALLY INFLUENCED BUT SOME DETAILS MAY EVENTUALLY BE FORTHCOMING AT THE CABINET MEETING YESTERDAY PRESIDENT FRANCOIS MITTERRAND URGED THAT AN OFFICIAL INQUIRY INTO THE BANK'S TROUBLED PAST BE HELD AND THE GOVERNMENT AGREED DEPUTIES OF THE RULING CONSERVATIVE PARTIES ALSO PROPOSED SEPARATELY THE ESTABLISHMENT OF A PARLIAMENTARY INVESTIGATION AS REPORTED CREDIT LYONNAIS LAST WEEK ANNOUNCED A LOSS IN 1993 OF 69 BILLION FRENCH FRANCS 12 BILLION AND SAID THE GOVERNMENT AND ITS OTHER TWO SHAREHOLDERS HAD AGREED TO PROVIDE IT WITH A CAPITAL INJECTION OF 49 BILLION FRANCS IT WAS MR SARKOZY WHO ANNOUNCED THAT THE BANK'S REAL LOSSES AMOUNTED TO ABOUT 25 BILLION FRANCS THE NEWS HAS STUNNED FRANCE WHERE CREDIT LYONNAIS IS BEST KNOWN FOR ITS SLOGAN THE POWER TO SAY YES LE POINT MAGAZINE RAN A COVER STORY ON THE BANK THIS WEEKEND HEADLINED THE BANKING SCANDAL OF THE CENTURY AND LIKE MOST MEDIA POINTED THE FINGER AT MR HABERER UNDER HIS STEWARDSHIP CREDIT LYONNAIS WENT ON AN EXPENSIVE BUYING SPREE ACROSS EUROPE TRYING TO TURN ITSELF INTO A FULL PANEUROPEAN FINANCIAL INSTITUTION AND GOT SEVERELY BOGGED DOWN IN HOLLYWOOD WHERE IT ENDED UP OWNING THE MGM FILM STUDIO AFTER FINANCING A DISASTROUS ACQUISITION BY GIANCARLO PARRETTI BY ADMITTING THAT AT LEAST AT HOME THE BANK'S MANAGEMENT WAS SWAYED BY POLITICAL CONSIDERATIONS MR HABERER MAY NOW HAVE OPENED A PANDORA'S BOX MOST STATEOWNED COMPANIES IN FRANCE SAY PUBLICLY THAT THEY DON'T RECEIVE INSTRUCTIONS FROM THE GOVERNMENT EVEN THOUGH OFFICIALS ADMIT PRIVATELY THAT THERE IS A CLEAR LINK ONE OF THE MOST OBVIOUS SIGNS IS THE GOVERNMENT'S REGULAR RESHUFFLE OF TOP JOBS IN THE STATE SECTOR IT USUALLY CHOOSES CANDIDATES FROM A SMALL POOL OF TECHNOCRATS WHO WEAVE IN AND OUT OF POLITICS AND BUSINESS MR HABERER IS A TYPICAL EXAMPLE BEFORE TAKING OVER AT CREDIT LYONNAIS IN 1988 HE HAD WORKED HIS WAY UP THROUGH POLITICS AS THE TOP AIDE TO A MICHEL DEBRE A FORMER MINISTER OF FINANCE AND OF FOREIGN AFFAIRS HE THEN MOVED TO HEAD THE FRENCH TREASURY BEFORE ENDING UP IN BUSINESS IN 1982 TAKING OVER THE TOP JOB AT PARIBAS AND THE TRADITION FOR THE MOMENT AT LEAST SEEMS SET TO CONTINUE BOTH OF THE CANDIDATES NOW BEING MENTIONED AS THE MOST LIKELY SUCCESSOR TO MR HABERER AT CREDIT NATIONAL ARE BUREAUCRATS WITH EXPERIENCE IN BOTH GOVERNMENT AND STATEOWNED BUSINESS 9403310156 940331 THE BULL STUMBLES HIGHER RATES WAYLAY STOCKS BUT OTHERWISE NOT MUCH IS CHANGED INVESTOR PSYCHOLOGY SHIFTS AND FIRST QUARTER PROFITS COULD MAKE IT SHIFT AGAIN TEST OF GREATER FOOL THEORY' BY WALL STREET JOURNAL STAFF REPORTERS JOHN R DORFMAN ANITA RAGHAVAN AND STEVEN E LEVINGSTON SUSAN SIEGEL IS DOWN BUT NOT OUT LIKE MILLIONS OF INVESTORS AROUND THE COUNTRY SHE HAS WATCHED THE VALUE OF HER STOCK PORTFOLIO SKID SINCE JANUARY BUT DR SIEGEL A DENTIST IN THE RIVERDALE SECTION OF NEW YORK'S BRONX BOROUGH IS STANDING PAT I WON'T SELL AT THE LOW SHE VOWS BESIDES THE STOCKMARKET DOWNTURN DOESN'T MAKE ANY SENSE TO ME THINGS SEEM A WHOLE LOT BETTER THAN THEY DID A YEAR AGO THE SLIDE DOESN'T MAKE MUCH SENSE TO MARK HUBERMAN EITHER BUT THE LOS ANGELES PHYSICIST AND INVETERATE INVESTOR HAS BEEN SELLING STOCKS FROM HIS PORTFOLIO SINCE JANUARY AND HE INTENDS TO CONTINUE TO CUT HIS HOLDINGS I DON'T HAVE THE ANSWER TO THE QUESTION IS THIS THE BEGINNING OF A BEAR MARKET' ADMITS MR HUBERMAN WHAT I DO HAVE IS A LOT OF UNCERTAINTY AND THAT DOUBT MORE THAN ANYTHING ELSE IS WHAT IS WRONG WITH THE STOCK MARKET SINCE HITTING A HIGH OF 397836 ON JAN 31 THE DOW JONES INDUSTRIAL AVERAGE HAS SKIDDED 35161 POINTS OR 88 THIS WEEK ALONE IT HAS FALLEN 39 CLOSING YESTERDAY AT 362675 A DROP OF 7227 YET MANY OF THE FUNDAMENTAL FORCES THAT HAVE PUSHED STOCKS HIGHER OVER THE PAST THREE YEARS REMAIN INTACT THE ECONOMIC RECOVERY THAT TOOK SO LONG TO BEGIN IS WELL ENTRENCHED CONSUMER CONFIDENCE IS THE STRONGEST IT HAS BEEN IN YEARS CORPORATE EARNINGS ARE SWELLING INFLATION REMAINS SUBDUED AND JOBS ARE BEING CREATED AT A GOOD PACE THE CLINTON ADMINISTRATION AGREES LAURA TYSON CHIEF WHITE HOUSE ECONOMIST SAYS THE MARKET DIVE HAS OCCURRED AMID SIGNS OF CONTINUED ECONOMIC GROWTH WITH LOW INFLATION SINCE WE BELIEVE THE FUNDAMENTALS ARE STRONG AND MARKETS ARE KNOWN TO OVERREACT ON OCCASION WE ARE SATISFIED THAT THE ECONOMY IS IN A SOUND POSITION SHE SAYS IN THE FUNDAMENTAL PICTURE ABOUT THE ONLY THING THAT HAS CHANGED IS INTEREST RATES AFTER FIVE YEARS OF FALLING ULTIMATELY TO THE LOWEST LEVELS SINCE THE 1960S RATES ARE RISING ON FEB 4 THE FEDERAL RESERVE BOARD RAISED SHORTTERM INTEREST RATES THE INCREASE WAS MINOR JUST A QUARTER OF A POINT BUT IT TOUCHED OFF AN AVALANCHE OF SELLING IN BOTH THE STOCK AND BOND MARKETS A SECOND QUARTERPOINT INCREASE IN THE FEDERALFUNDS RATE LAST WEEK FURTHER ROILED THE MARKETS WHAT HAS SHIFTED SIGNIFICANTLY IS INVESTOR PSYCHOLOGY AND INTEREST RATES ARE PART OF THAT PSYCHOLOGY ALTHOUGH FEW ANALYSTS ARGUE THAT TWO MINOR RATE INCREASES ARE BY THEMSELVES ENOUGH TO UNNERVE INVESTORS AND UNDO A STRONG THREEYEAROLD BULL MARKET IN STOCKS MANY POINT OUT THAT NO ONE KNOWS HOW MUCH HIGHER RATES WILL GO ADD TO THAT THE GROWING WHITEWATER PROBLEMS FACING THE CLINTON ADMINISTRATION AND A FEW INTERNATIONAL CRISES AND INVESTORS BEGIN TO GET UPSET THE PSYCHOLOGY RIGHT NOW IS VERY BAD SAYS JEFFREY MALET MANAGER OF THE PACIFIC HORIZON AGGRESSIVE GROWTH FUND THREE WEEKS AGO EVERYBODY LOVED STOCKS AND NOW NO ONE WANTS TO TOUCH THEM EVEN WALL STREET WHICH IS IN THE BUSINESS OF SELLING STOCKS DOESN'T LIKE THEM AS MUCH AS IT DID JUST A FEW DAYS AGO THIS WEEK ALONE THREE BIG BROKERAGE FIRMS HAVE ADVISED CLIENTS TO REDUCE THEIR STOCK HOLDINGS PERHAPS MORE WORRISOME TO SOME INVESTORS IS THAT ELAINE GARZARELLI THE LEHMAN BROTHERS STOCKMARKET GURU TOLD THE BROKERAGE HOUSE'S SALES FORCE YESTERDAY THAT THERE IS A 5050 CHANCE THE MARKET'S LOSSES WILL WIDEN TO 10 TO 15 THE LONGBULLISH MS GARZARELLI SUGGESTS THAT RISING RATES THE VERY THING THAT MANY ANALYSTS BLAME FOR THE STOCK MARKET'S RETREAT CONTAIN THE SEEDS FOR A BIG RALLY LATER THIS YEAR HER LOGIC HIGHER RATES ALREADY ARE SLOWING THE ECONOMY SETTING THE STAGE FOR LONGTERM INTEREST RATES TO ONCE AGAIN DECLINE IF THE SLUMP STOPS NOW OR EVEN IF IT GOES DOWN ANOTHER 5 OR SO IT WILL GO IN THE HISTORY BOOKS AS JUST ANOTHER CORRECTION A BRIEF INTERLUDE OF DECLINING PRICES IN A CONTINUING BULL MARKET BUT IF PRICES KEEP FALLING GATHERING MOMENTUM AS THEY ROLL DOWNHILL THIS COULD BECOME A FULLFLEDGED BEAR MARKET SUCH A DEBILITATING SLIDE WOULD SAP INVESTORS' CONFIDENCE AND SEND THEM SCURRYING FOR THE SAFETY OF SUCH UNSOPHISTICATED AND LOWPAYING INVESTMENTS AS BANK CERTIFICATES OF DEPOSIT EVEN SOME OF THE SAVVIEST WALL STREET WIZARDS CONFESS THAT THEY HAVEN'T A CLUE TO WHAT COMES NEXT I HAVE NO IDEA WHATSOEVER SAYS JEFF VINIK THE MANAGER OF FIDELITY INVESTMENTS' 34 BILLION MAGELLAN FUND THAT UNCERTAINTY ISN'T STOPPING HIM FROM ADDING STOCKS HE LIKES TO HIS MASSIVE PORTFOLIO EVEN IF IT IS A BEAR MARKET THE STOCKS THAT WILL BE THE LEADERS IN THE NEXT UPCYCLE OFTEN BOTTOM EARLY HE EXPLAINS IF IT GOES LOWER I'LL PROBABLY BUY MORE SOME OF THE MOST BULLISH INVESTORS SUGGEST THAT THE END OF THE STOCKMARKET SLUMP COULD COME AS EARLY AS TODAY THE END OF THE FIRST QUARTER IF THE MARKET HAS DONE WELL IN A GIVEN QUARTER MONEY MANAGERS WANT TO SHOW LOTS OF STOCKS ON THEIR BOOKS BUT IF AS IN THE FIRST QUARTER THE MARKET IS DOWN CASH BECOMES KING AS THE QUARTER ENDS MONDAY'S MARKET ACTIVITY COMING ON THE HEELS OF A THREEDAY WEEKEND FOR MANY TRADERS COULD BE THE INDICATOR PEOPLE WANT TO LOOK SMART AND SHOW A LOT OF CASH ON THEIR BALANCE SHEETS SAYS RICHARD BERNER CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH THEY'VE BEEN DUMPING A LOT OF STOCKS TO DO THAT ANOTHER CHANCE FOR STOCK PRICES TO REVERSE THEIR DECLINES COMES IN A FEW WEEKS WHEN CORPORATIONS BEGIN REPORTING FIRSTQUARTER PROFITS A SURGING ECONOMY AND LOTS OF LEAN AND MEAN COMPANIES THAT HAVE GOTTEN VERY EFFICIENT IN THE PAST FEW YEARS SHOULD PRODUCE SOME GOOD EARNINGS REPORTS THAT WILL PROP UP STOCK PRICES A HINT OF WHAT MAY LIE AHEAD CAME TWO WEEKS AGO WHEN CATERPILLAR CORP SAID IT EXPECTED TO REPORT ESPECIALLY HEALTHY SALES GAINS FOR THE QUARTER CATERPILLAR STOCK SOARED 325 TO 11950 AND HELPED THE BROAD STOCK MARKET RISE TOO CORPORATE PROFITS ARE GROWING AHEAD OF EXPECTATIONS AND ARE LIKELY TO CONTINUE TO DO SO SAYS STEVEN EINHORN A STOCK MARKET STRATEGIST AT GOLDMAN SACHS & CO THAT SUGGESTS TO US THAT WE STILL HAVE A LONGLASTING BULL MARKET AHEAD OF US HE REMAINS CONFIDENT HE SAYS THAT THE DOW JONES INDUSTRIAL AVERAGE WILL EDGE OVER THE 4000 MARK IN THE NEXT 12 MONTHS BUT IF NEITHER THE CHANGING CALENDAR NOR STRONG FIRSTQUARTER EARNINGS STEM THE STOCK MARKET'S SLIDE THE BEARS WILL HAVE AN EASIER TIME MAKING THEIR CASE FOR A SUSTAINED MARKET SLUMP PART OF THAT CASE OF COURSE IS GROUNDED IN THE CHANGING PSYCHOLOGY THE MORE BASIC BEAR ARGUMENT WHICH MANY BEARS HAVE BEEN MAKING FOR TWO YEARS OR MORE CENTERS ON STOCK PRICES THAT HAVE RISEN FAR ABOVE LEVELS THEY BELIEVE ARE JUSTIFIED BY UNDERLYING FACTORS TAKE FOR INSTANCE THE LEVEL OF DIVIDENDS THAT INVESTORS ARE PAID BY THE 30 COMPANIES THAT MAKE UP THE DOW JONES INDUSTRIAL AVERAGE IF AN INVESTOR BOUGHT ALL 30 STOCKS TODAY HE OR SHE WOULD BE PAID A DIVIDEND AMOUNTING TO ABOUT 28 OF HIS TOTAL INVESTMENT MANY ANALYSTS CONSIDER A DIVIDEND YIELD OF LESS THAN 3 EVIDENCE OF DANGEROUSLY HIGH STOCK PRICES EARNINGS FIGURE INTO THE BEAR CASE TOO HISTORICALLY THE 30 STOCKS IN THE DOW INDUSTRIALS HAVE CARRIED AN AVERAGE PRICE TAG OF ABOUT 136 TIMES THE EARNINGS PRODUCED BY THOSE STOCKS IN THE PREVIOUS FOUR QUARTERS DESPITE THE DOW'S RECENT BIG DROP PRICES ARE STILL ABOUT 25 TIMES THE PAST YEAR'S EARNINGS THAT TOO IS EVIDENCE TO ANALYSTS THAT THE STOCK MARKET HAS TO FALL SOME ANALYSTS ARE POINTING TO THE HEAVY PACE OF SELLING AS EVIDENCE THAT TOUGH TIMES ARE AHEAD NED DAVIS HEAD OF A STOCKMARKET RESEARCH FIRM IN NOKOMIS FLA SAYS HE HAS FOUND THAT 5 CORRECTIONS ARE COMMONPLACE BUT ONCE PRICES FALL 72 HE SAYS THERE IS AN EVEN CHANCE THAT THE DECLINE WILL DEVELOP INTO A GROWLING BEAR EVEN THE ROBUST ECONOMIC RECOVERY THAT HAS DEVELOPED FEEDS THE BEARS THEY ARGUE THAT A FASTGROWING ECONOMY BREEDS EVERHIGHER INTEREST RATES THAT IN THE END WIND UP BRINGING THE RECOVERY TO A HALT WARREN SMITH MANAGING EDITOR OF BCA FORETRENDS AN INVESTMENT RESEARCH FIRM IN MONTREAL SUGGESTS THAT WE HAVE SEEN ONLY THE BEGINNING OF RISING INTEREST RATES SIX MONTHS FROM NOW HE PREDICTS INVESTORS WILL BE FLEEING STOCKS AHEAD OF A SLUMPING ECONOMY AND FALLING EARNINGS THE DYNAMICS ARE THERE FOR A BEAR MARKET HE CONTENDS YOU JUST HAVE TO LET IT PLAY OUT IN THE END WHETHER THE SLUMP ENDS SOON OR TURNS INTO A PROLONGED AND DEEP RETREAT DEPENDS TO A LARGE EXTENT ON THE DECISIONS OF MILLIONS OF INDIVIDUAL INVESTORS UNLIKE THE STOCK MARKET OF THE 1970S AND 1980S WHICH WAS DRIVEN BY BIG INSTITUTIONAL AND PENSION FUNDS THE MARKET THESE DAYS IS UNDER THE INFLUENCE OF THE LITTLE GUY INDIVIDUAL INVESTORS BEGAN FLOCKING TO THE STOCK MARKET IN LARGE NUMBERS IN 1990 AS THE FED ANXIOUS TO STIMULATE A FLAGGING ECONOMY BEGAN CUTTING INTEREST RATES SWIFTLY AND SHARPLY AS OTHER RATES FELL INVESTORS SOUGHT THE HIGHER RETURNS TRADITIONALLY OFFERED BY STOCKS AT THE SAME TIME AN INCREASING NUMBER OF COMPANIES ADOPTED RETIREMENT PLANS THAT GAVE EMPLOYEES MORE CONTROL OF THEIR OWN RETIREMENT ASSETS BUT NOW THAT THE FED HAS REVERSED COURSE IN ITS INTERESTRATE POLICY SOME ANALYSTS SPECULATE THAT IT WON'T BE LONG BEFORE MANY INVESTORS BEGIN TO YANK MONEY OUT OF THE STOCK MARKET TO PARK IN THEIR BANK THE FEDERAL RESERVE CREATED THIS FINANCIAL MANIA AND NOW IT HAS DESTROYED IT SAYS MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER & CO HE PREDICTS THAT THE FLOW OF FUNDS OUT OF THE MARKET INTO LESSRISKY INVESTMENTS WILL COST THE DOW INDUSTRIALS ANOTHER 500 OR MORE POINTS IN COMING MONTHS EVEN SOME OF THE MORE OPTIMISTIC OBSERVERS THINK THE PUBLIC PASSION FOR STOCKS IS WANING ALTHOUGH GAIL DUDACK A STOCK STRATEGIST AT SG WARBURG & CO IS LOOKING FOR A MODEST CORRECTION THAT WOULD TAKE THE INDUSTRIAL AVERAGE TO 3600 BEFORE ANOTHER BIG RALLY SHE POINTS OUT THAT FOR THE FIRST TIME IN 22 YEARS HOUSEHOLDS OWN MORE STOCK THAN THEY HAVE CASH THE REAL NEED TO INVEST WHAT HAD BEEN AN EXTREMELY HIGH CASH LEVEL DOESN'T EXIST AS IT DID A FEW YEARS AGO SHE SAYS WITH LESS MONEY POURING IN FROM HOUSEHOLDS THE MARKET WILL BE MORE VOLATILE BEARS CLAIM TO SEE EVIDENCE OF THAT WANING APPETITE FOR STOCKS IN THE FLOWS OF NEW MONEY INTO MUTUAL FUNDS ACCORDING TO SEVERAL MUTUAL FUND MANAGERS CASH FLOWS INTO STOCK MUTUAL FUNDS IN MARCH FELL FROM THE TORRID PACE EARLIER IN THE YEAR BULLS COUNTER HOWEVER THAT IT WAS UNCERTAINTY NOT SURFEIT THAT SLOWED THE FLOWS AND THAT A REBOUNDING STOCK MARKET WILL ONCE AGAIN DRAW MONEY TO THE FUNDS TO HEAR INDIVIDUAL INVESTORS TELL IT MANY ARE JUST WAITING THOUGH THEY HAVE THEIR BIAS I'M SORT OF STUNNED AT HOW THINGS HAVE CHANGED SO FAST SAYS ASH AGBOATWALA A 44YEAROLD ENGINEER IN FREMONT CALIF AN OPTIMIST MR AGBOATWALA IS KEEPING A LIST OF STOCKS HE WANTS TO BUY WHEN THE MARKET SLUMP ENDS TROUBLE IS HE DOESN'T KNOW HOW TO TELL WHEN THE SLUMP IS OVER THEY WON'T RING A BELL HE SAYS ELIZABETH TAN A 29YEAROLD COMPUTER SUPPORT SPECIALIST IN NEW YORK IS HOLDING FIRM TOO BUT HER BIAS IS DIFFERENT FROM MR AGBOATWALA'S IT DEFINITELY SCARES ME SHE SAYS I'M MONITORING MY STOCKS EVERY DAY I DON'T WANT TO DO ANY PANIC SELLING I'M JUST KIND OF STANDING ON THE SIDELINES READY TO SELL AND THEN THERE ARE THE HOPEFULS BULL MARKETS DON'T LAST FOREVER CONCEDES JUDY BLITMAN A 54YEAROLD PSYCHIATRIST IN NEW YORK YOU TAKE A RISK AND YOU TAKE THE CONSEQUENCES BUT SHE ADDS HER OWN LITTLE BIT OF SANGUINE ANALYSIS DON'T PEOPLE WITHDRAW MONEY THIS TIME OF YEAR TO PAY TAXES SHE ASKS ROBERT MCGOUGH AND SARA CALIAN CONTRIBUTED TO THIS ARTICLE 9403310155 940331 SEC TO VOTE ON PROPOSAL FOR MUNICIPAL BOND BIDS WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION SAID IT WILL ACT WEDNESDAY ON A PROPOSAL DESIGNED TO SEVER ANY LINK BETWEEN POLITICAL CONTRIBUTIONS AND THE AWARDING OF MUNICIPAL BOND BUSINESS THE PROPOSED RULE DRAFTED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD ALREADY IS BEING CHALLENGED IN A LAWSUIT FILED BY AN ALABAMA BOND DEALER WHO ALSO IS CHAIRMAN OF THE STATE'S DEMOCRATIC PARTY THE RULE WOULD BAR BOND DEALERS FROM DOING BUSINESS WITH A STATE OR LOCAL GOVERNMENT ENTITY WITHIN TWO YEARS OF MAKING A POLITICAL CONTRIBUTION TO AN OFFICIAL OF THE JURISDICTION OR A CANDIDATE FOR OFFICE THERE IT SEEKS TO END WHAT REGULATORS SAY UNTIL RECENTLY WAS A PERVASIVE CONNECTION BETWEEN POLITICAL GIVING AND BOND BUSINESS THE BOARD IS A SELFREGULATORY BODY OVERSEEN BY THE SEC THE COMMISSION IS WIDELY EXPECTED TO APPROVE THE RULE AT ITS MEETING WEDNESDAY THE SEC ALSO WILL CONSIDER ANOTHER PROPOSAL BY THE BOARD RELATING TO THE SUITABILITY OF RECOMMENDATIONS MADE BY MUNI DEALERS 9403310154 940331 INTERNATIONAL JAPAN ISSUES MIXED SIGNALS ON ITS ECONOMY BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE OUTLOOK FOR JAPAN'S SLUGGISH ECONOMY IS DECIDEDLY MIXED ON WEDNESDAY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID JAPAN'S INDUSTRIAL OUTPUT IN FEBRUARY GREW A WEAK 02 FROM JANUARY WELL BELOW THE MINISTRY'S FORECAST 26 GROWTH RATE MEANWHILE THE YEN CONTINUED TO SURGE AGAINST THE DOLLAR AMID SIGNS OF INCREASING TRADE TENSIONS ANOTHER WORRYING SIGN FOR JAPAN'S EXPORTERS THE NEWS FOLLOWED MOREBULLISH INDICATORS EARLIER IN THE WEEK JAPAN'S ECONOMIC PLANNING AGENCY SAID ITS KEY INDEX OF FORWARDLOOKING INDICATORS CAME IN ABOVE THE SOCALLED BOOMORBUST LINE OF 50 FOR THE FIRST TIME IN NINE MONTHS OTHER RECENT SURVEYS HAVE SHOWN THAT BUSINESS SENTIMENT IS IMPROVING SUCH CONFLICTING SIGNALS BEAR A RESEMBLANCE TO THE SAME PERIOD A YEAR EARLIER THEN INDUSTRIAL OUTPUT WAS ON THE RISE MONEY SUPPLY WAS EXPANDING AND CAR SALES WERE JUMPING AS COMPANIES MADE LASTDITCH EFFORTS TO MOVE INVENTORY BEFORE CLOSING THEIR BOOKS FOR THE YEAR BUT THE NEWS QUICKLY TURNED SOUR AGAIN WE'VE SEEN IT ALL BEFORE SAID CHRIS CALDERWOOD AN ECONOMIST AT BARCLAY'S DE ZOETE WEDD SECURITIES THAT FEBRUARY PRODUCTION CAME IN BELOW EXPECTATIONS MAY BE A SIGN THAT EXPECTATIONS ARE A LITTLE TOO HIGH HE SAID MANY ANALYSTS SAY THAT WHILE ANY RECOVERY PROBABLY WILL BE MODERATE THE WORST IS OVER EVEN WEDNESDAY'S SMALL RISE IN INDUSTRIAL PRODUCTION IS GOOD NEWS THEY SAID WHAT'S MORE WEDNESDAY'S REPORT SHOWED BLOATED INVENTORY LEVELS AT MANUFACTURERS FELL 1 IN FEBRUARY WHILE SHIPMENTS ROSE 12 SUCH SIGNALS ARE BUOYING THOSE WHO BELIEVE THE WORST IS OVER WE DON'T EXPECT ANY MORE PERIODS OF NEGATIVE GROWTH IN JAPAN'S GROSS NATIONAL PRODUCT SAID PETER MORGAN ECONOMIST AT MERRILL LYNCH JAPAN LTD FRIDAY WILL PROVIDE A KEY TEST JAPAN'S AUTOMOBILE DEALERS WILL RELEASE CARSALES DATA FOR MARCH ANALYSTS EXPECT A STRONG SHOWING AS DEALERS OFFERED STEEP DISCOUNTS TO MEET YEAREND TARGETS BUT SOME ANALYSTS SAY THIS YEAREND PUSH WILL FALL SHORT OF EXPECTATIONS AMID THE MIXED SIGNALS JAPAN'S RELEASE EARLIER IN THE WEEK OF A PLAN TO EASE TRADE TENSIONS WITH THE US HAS IF ANYTHING FURTHER CLOUDED THE NATION'S ECONOMIC OUTLOOK BECAUSE IT FELL SHORT OF US EXPECTATIONS THE PLAN DROVE THE YEN HIGHER IN ANTICIPATION THE US MAY SEEK A STRONG JAPANESE CURRENCY AS A MEANS OF NARROWING JAPAN'S HUGE TRADE SURPLUS WITH THE US LAST YEAR THE CLINTON ADMINISTRATION TALKED UP THE YEN MAKING JAPANESE EXPORTS LESS COMPETITIVE WHILE ENCOURAGING US IMPORTS INTO JAPAN SINCE THE PLAN'S RELEASE THE DOLLAR HAS FALLEN MORE THAN TWO YEN THE NEGATIVE IMPLICATIONS A STRONG YEN HAS FOR JAPAN'S EXPORTDRIVEN ECONOMY CAUSED JAPANESE STOCK PRICES TO DECLINE FOR TWO DAYS RUNNING JUST AS CORPORATIONS WERE PREPARING TO CLOSE BOOKS FOR THE FISCAL YEAR END WEAKER STOCK PRICES ARE ESPECIALLY BAD NEWS NOW FOR JAPAN'S FINANCIAL INSTITUTIONS WHICH RELY ON THE YEAREND VALUE OF THEIR MASSIVE STOCK PORTFOLIOS TO DRESS UP THEIR BALANCE SHEETS MEANWHILE CORPORATIONS ARE CONTINUING TO TAKE MEASURES TO COPE WITH THE DOWNTURN WHICH HAS DRAGGED ON LONGER THAN MOST HAD ANTICIPATED NIPPON STEEL CORP THE LARGEST OF JAPAN'S STEEL MAKERS RELEASED DETAILS OF A PLAN WEDNESDAY TO REDUCE JOBS BY 7000 TO A TOTAL OF 20000 9403310153 940331 BUSINESS BRIEF GKN PLC BRITISH COMPANY INCREASES STAKE IN WESTLAND TO 5003 GKN PLC'S STAKE IN WESTLAND GROUP PLC ROSE TO 5003 AFTER SOME WESTLAND SHAREHOLDERS ACCEPTED A SWEETENED SHARE OFFER GKN A BRITISH MAKER OF AUTOMOTIVE PRODUCTS INCREASED ITS OFFER FOR WESTLAND SHARES TO 335 PENCE 497 A SHARE FROM THE ORIGINAL 290 PENCE GKN ALSO SWEETENED OTHER TERMS OF THE OFFER GKN SAID IT NOW CONTROLS 3345 MILLION OR 327 OF THE ORDINARY SHARES OF WESTLAND AND 355 MILLION OR 100 OF THE VOTING AND NONVOTING PREFERRED SHARES OF WESTLAND THAT ARE IMMEDIATELY CONVERTIBLE INTO ORDINARY SHARES WESTLAND ALSO BASED IN THE UK MAKES HELICOPTERS AND AEROSPACE PRODUCTS IN LONDON STOCK EXCHANGE TRADING YESTERDAY GKN SHARES CLOSED AT 537 PENCE DOWN 10 PENCE 9403310152 940331 WHO'S NEWS BIG ENTERTAINMENT INC BIG ENTERTAINMENT INC BOCA RATON FLA PHILIP R EGGEN 37 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT OF RETAIL OPERATIONS AT THIS MULTIMEDIA COMIC BOOK PUBLISHER MR EGGEN WAS FORMERLY A DISTRICT MANAGER WITH BLOCKBUSTER ENTERTAINMENT CORP 9403310151 940331 WHO'S NEWS WARNER BROS DUO OF DALY AND SEMEL TO SHARE TOP BILLING CHAIRMAN CEO BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL AFTER MORE THAN A DECADE OF SHARING MANAGEMENT DUTIES AT HOLLYWOOD'S MOST CONSISTENTLY SUCCESSFUL STUDIO THE TWO EXECUTIVES WHO RUN WARNER BROS ARE GOING TO SHARE THE TOP TITLE ROBERT A DALY CHAIRMAN AND CHIEF EXECUTIVE OF THE TIME WARNER UNIT SAID YESTERDAY THAT HE HAS DECIDED TO SHARE HIS CORPORATE TITLES WITH TERRY SEMEL WHO HAS BEEN PRESIDENT AND CHIEF OPERATING OFFICER MR SEMEL WILL THUS BECOME CHAIRMAN AND COCHIEF EXECUTIVE OFFICER AND BARRY MEYER AN EXECUTIVE VICE PRESIDENT WILL GET THE ADDITIONAL TITLE OF CHIEF OPERATING OFFICER MR MEYER 50 YEARS OLD HAS RUN THE TELEVISION SIDE OF WARNER'S OPERATIONS AND INCREASINGLY ASSUMED MR SEMEL'S ADMINISTRATIVE AND PERSONNEL DUTIES OVER THE LAST THREE YEARS FREEING MR SEMEL TO WORK MORE CLOSELY WITH MR DALY ON STRATEGIC MATTERS MESSRS DALY AND SEMEL SAID MR MEYER'S ADDITIONAL POST IS A RECOGNITION OF HIS DUTIES CORPORATE EXECUTIVES AND DIVISION HEADS WHO NOW REPORT TO MESSRS DALY AND SEMEL WILL CONTINUE TO DO SO THEY ADDED MR DALY 57 SAID MR SEMEL'S PROMOTION FORMALIZES THE EQUAL ROLE HE AND MR SEMEL HAVE LONG HAD WE'VE ALWAYS RUN THE COMPANY AS A PARTNERSHIP AND I THOUGHT TERRY SHOULD GET THE RECOGNITION HE DESERVES NOW BOTH ON THE INSIDE OF THE COMPANY AND ON THE OUTSIDE MR SEMEL WHO IS 51 SAID THAT ALTHOUGH HE DIDN'T REQUEST THE CHANGE HE WELCOMED IT THE ONLY THING THAT WASN'T EQUAL WAS OUR TITLES AND BOB SAID LET'S DO SOMETHING ABOUT IT' MR SEMEL SAID THOUGH TYPICALLY NO ONE IN THE TOP POSTS IN HOLLYWOOD SHARES A TITLE INDUSTRY EXECUTIVES NOTED THAT WARNER IS THE MOST LIKELY CANDIDATE FOR SUCH AN ARRANGEMENT THEY BOTH DO THE SAME JOB AND RUN THE STUDIO SO IT SEEMS VERY APPROPRIATE SAID RON MEYER PRESIDENT OF HOLLYWOOD'S CREATIVE ARTISTS AGENCY TALENT FIRM THEY REALLY ARE A LEFTHAND RIGHTHAND TEAM INDEED THE DALYSEMEL MANAGEMENT DUO HAS BEEN IN PLACE FOR MORE THAN A DECADE COMPARED WITH REVOLVING DOORS IN THE EXECUTIVE SUITES OF MANY OTHER STUDIOS THE TWO EXECUTIVES SAY THEY RARELY DISAGREE AND ARE CLOSE PERSONALLY EVEN DRIVING TO WORK WITH EACH OTHER TWO OR THREE DAYS A WEEK THE MOVE APPEARS INTENDED TO SEND THE FIRM SIGNAL THAT BOTH ARE PLANNING TO STAY AT WARNER FOR THE LONG HAUL BOTH MR DALY AND MR SEMEL HAVE BEEN APPROACHED TO TAKE OTHER JOBS OVER THE LAST TWO YEARS MR DALY A FORMER TOP CBS INC EXECUTIVE WAS WOOED BY CAPITAL CITIES/ABC INC TO TAKE THE SENIOR POST THERE AND LAST YEAR MR SEMEL CAME CLOSE TO LEAVING WARNER TO BECOME AN EQUITY INVESTOR AND THE TOP EXECUTIVE AT MGM/UA ENTERTAINMENT INC BOTH DECIDED TO STAY SAYING THEY HAVE NO PLANS TO LEAVE THE COMPANY THE ONLY REASON I WILL EVER LEAVE HERE IS IF SOMEONE STARTS GIVING US A TOUGH TIME MR DALY SAID NOTING THAT GERALD LEVIN TIME WARNER'S CHAIRMAN AND CHIEF EXECUTIVE LETS US RUN OUR OWN SHOW WARNER BROS HAS HELD THE TOP MARKET SHARE AMONG MOVIE DISTRIBUTORS FOR THE PAST THREE YEARS YESTERDAY DAILY VARIETY REPORTED THAT THROUGH MARCH 27 WARNER CONTINUED TO HOLD THE TOP BOX OFFICE SPOT WITH A 199 SHARE 9403310150 940331 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 1/4 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 9/16 HIGH 2 1/2 LOW 2 NEAR CLOSING BID 2 1/2 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 1/4 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 363 30 TO 59 DAYS 368 60 TO 74 DAYS 375 75 TO 99 DAYS 380 100 TO 119 DAYS 385 120 TO 149 DAYS 397 150 TO 179 DAYS 402 180 TO 239 DAYS 412 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 368 30 DAYS 377 60 DAYS 389 90 DAYS CERTIFICATES OF DEPOSIT 302 ONE MONTH 313 TWO MONTHS 323 THREE MONTHS 356 SIX MONTHS 393 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 357 ONE MONTH 375 THREE MONTHS 407 SIX MONTHS BANKERS ACCEPTANCES 356 30 DAYS 362 60 DAYS 371 90 DAYS 382 120 DAYS 393 150 DAYS 4 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 11/16 3 9/16 ONE MONTH 3 13/16 3 11/16 TWO MONTHS 3 15/16 3 13/16 THREE MONTHS 4 1/16 3 15/16 FOUR MONTHS 4 1/8 4 FIVE MONTHS 4 1/4 4 1/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 11/16 ONE MONTH 3 15/16 THREE MONTHS 4 1/4 SIX MONTHS 4 3/4 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 625 GERMANY 576 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 MARCH 28 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 350 13 WEEKS 385 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 814 60 DAYS 821 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 812 60 DAYS 819 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 590 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 285 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403310149 940331 TECHNOLOGY AUTOIMMUNE BEGINS DRUG TRIALS LEXINGTON MASS AUTOIMMUNE INC SAID IT IS STARTING PHASE III HUMAN TRIALS ON ITS LEAD PRODUCT MYLORAL WHICH IS DESIGNED TO HELP MULTIPLE SCLEROSIS PATIENTS AUTOIMMUNE SAID THE TRIALS ON 500 PATIENTS AT 13 MEDICAL CENTERS IN THE US AND CANADA ARE EXPECTED TO TAKE TWO YEARS MYLORAL IS AN ORAL TOLERANCE THERAPY DESIGNED TO SUPPRESS THE IMMUNE SYSTEM IN SPECIFIC AREAS WHERE AUTOIMMUNE ATTACKS SUCH AS MULTIPLE SCLEROSIS OCCUR IN FEBRUARY 1993 SCIENTISTS REPORTED A 50 REDUCTION IN MS ATTACKS IN 30 PATIENTS STUDIED IN A PILOT TRIAL OF MYLORAL IN ANIMAL STUDIES THE PROTEIN IN MYLORAL HAS BEEN SHOWN TO REDUCE THE FREQUENCY AND SEVERITY OF MS ATTACKS SLOWING THE PROGRESSION OF THE DISEASE 9403310147 940331 WHO'S NEWS ONCOGENE SCIENCE INC ONCOGENE SCIENCE INC UNIONDALE NY WALTER M LOVENBERG 59 YEARS OLD AND J GORDON FOULKES 40 WERE NAMED DIRECTORS OF THIS BIOPHARMACEUTICAL CONCERN INCREASING BOARD MEMBERSHIP TO 10 DR LOVENBERG A CONSULTANT IS A FORMER PRESIDENT OF MARION MERRELL DOW INC'S RESEARCH INSTITUTE DR FOULKES IS VICE PRESIDENT AND CHIEF SCIENTIFIC OFFICER AT ONCOGENE 9403310146 940331 TRAVELERS' WEILL EXERCISED 469 MILLION IN STOCK OPTIONS LAST YEAR FIRM SAYS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TRAVELERS INC CHAIRMAN SANFORD I WEILL ONE OF WALL STREET'S SAVVIEST EXECUTIVES LAST YEAR EXERCISED STOCK OPTIONS VALUED AT 469 MILLION ACCORDING TO THE FIRM'S PROXY STATEMENT SEPARATELY MR WEILL RECEIVED A 1993 PAY PACKAGE OF 59 MILLION IN SALARY BONUS AND RESTRICTED STOCK AMID RECORD PROFIT AT TRAVELERS WHICH OWNS SMITH BARNEY SHEARSON INC THE NATION'S SECONDBIGGEST BROKERAGE FIRM BUT MR WEILL'S 1993 PAY PACKAGE PALED IN COMPARISON WITH THAT OF ROBERT F GREENHILL SMITH BARNEY SHEARSON CHAIRMAN AND CHIEF EXECUTIVE MR GREENHILLWOOED AWAY FROM RIVAL MORGAN STANLEY GROUP INC LAST YEARRECEIVED 239 MILLION IN SALARY BONUS AND RESTRICTED STOCK THE PROXY STATEMENT SAYS THE BULK OF THE PACKAGE NEARLY 20 MILLION IS RESTRICTED STOCK MR GREENHILL ALSO RECEIVED OPTIONS ON TRAVELERS SHARES THAT THE COMPANY CURRENTLY VALUES AT 124 MILLION IN ALL MR GREENHILL'S PAY PACKAGE RANKS AMONG THE HIGHEST EVER FOR A CHIEF EXECUTIVE OF A WALL STREET BROKERAGE FIRM FOR HIS PART MR WEILL'S 1993 COMPENSATION WAS 56 HIGHER THAN THE 38 MILLION HE RECEIVED IN 1992 THE PROXY STATEMENT SAYS MR WEILL ALSO RECEIVED RELOAD OPTIONS IN 1993 THAT THE COMPANY CURRENTLY VALUES AT 204 MILLION THESE RELOAD OPTIONS ALLOW EXECUTIVES TO RECEIVE NEW STOCK OPTIONS ANY TIME THEY CASH IN OPTIONS THEY ALREADY OWN THE INCENTIVE IS TO PROD MORE PRODUCTIVITY BY GIVING EXECUTIVES BIGGER STAKES IN COMPANIES THEY RUN THE PAY BREAKDOWN UNDERSCORES MR WEILL'S STRATEGY ON COMPENSATION RELATIVELY LOW CASH PAY WITH A CHANCE TO EARN SIGNIFICANTLY BIGGER BUCKS IF THE COMPANY AND ITS STOCK PRICE SOARS HIS TOTAL PAY PACKAGE INCLUDES A HIGHER PERCENTAGE OF OPTION INCOME THAN MANY OTHER WALL STREET EXECUTIVES SOME OF WHOM EARNED MORE IN CASH PAY ANALYSTS DIDN'T BLANCH AT MR WEILL'S COMPENSATION HE'S GOT HIS EXECUTIVES VERY FOCUSED ON STOCK PRICE AND STOCK COMPENSATION SAID SAMUEL LISS A SALOMON BROTHERS INC ANALYST MR WEILL AND HIS MANAGERS HAVE DONE PHENOMENALLY WELL FOR SHAREHOLDERS INDEED SHARES OF TRAVELERS FORMERLY KNOWN AS PRIMERICA HAVE NEARLY DOUBLED THE GAINS OF THE STANDARD & POOR'S 500 INDEX SINCE 1988 AND FAR OUTPACED THE STOCKS OF AN INDEX OF FINANCIALSERVICES FIRMS INCLUDING MONEYCENTER BANKS AND INSURANCE CONCERNS ACCORDING TO THE PROXY STATEMENT MR WEILL'S 1993 INCOME FROM OPTIONS BRINGS HIS TWOYEAR OPTION WINDFALL TO MORE THAN 110 MILLION IN 1992 MR WEILL EXERCISED STOCK OPTIONS VALUED AT 638 MILLION IN ADDITION HE HELD 473 MILLION IN CURRENTLY UNEXERCISABLE OPTIONS ON TRAVELERS STOCK AS OF DEC 31 1993 THE PROXY STATEMENT SAYS AMONG OTHER TRAVELERS EXECUTIVES VICE CHAIRMAN FRANK G ZARB RECEIVED 41 MILLION IN SALARY BONUS AND RESTRICTED STOCK UP FROM 34 MILLION IN 1992 MR ZARB EXERCISED 127 MILLION IN STOCK OPTIONS IN 1993 AND HAD 954368 OUTSTANDING IN EXERCISABLE OPTIONS ON TRAVELERS SHARES AS OF DEC 31 1993 THE STATEMENT SAYS IN ADDITION IN 1993 MR ZARB RECEIVED RELOAD OPTIONS CURRENTLY VALUED AT 54 MILLION TRAVELERS PRESIDENT JAMES DIMON RECEIVED 27 MILLION IN 1993 CASH PAY AND RESTRICTED STOCK UP FROM 18 MILLION IN 1992 MR DIMON EXERCISED 42 MILLION IN STOCK OPTIONS IN 1993 AND HAS 49 MILLION OUTSTANDING IN UNEXERCISABLE TRAVELERS OPTIONS ACCORDING TO THE PROXY STATEMENT MR DIMON RECEIVED RELOAD OPTIONS IN 1993 CURRENTLY VALUED AT 46 MILLION THE STATEMENT SAYS TRAVELERS VICE CHAIRMAN ROBERT LIPP HAD 1993 PAY OF 25 MILLION IN CASH AND RESTRICTED STOCK MR LIPP ALSO EXERCISED 31 MILLION IN TRAVELERS OPTIONS IN 1993 AND HAS 41 MILLION IN STOCK OPTIONS OUTSTANDING 9403310145 940331 INTERNATIONAL IRA DECLARES A THREEDAY CEASEFIRE BUT IRELAND AND UK SHOW SKEPTICISM BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE OUTLAWED IRISH REPUBLIC ARMY DECLARED A THREEDAY CEASEFIRE NEXT WEEK IN THE CONFLICT OVER NORTHERN IRELAND BUT THE BRITISH AND IRISH GOVERNMENTS RESPONDED WITH SKEPTICISM ABOUT THE SIGNIFICANCE OF THE OFFER ALTHOUGH SOME INTERPRET THE IRA'S MOVE AS A GOODWILL GESTURE TOWARD BREAKING THE CURRENT IMPASSE IT WAS ALSO SEEN AS AN ASTUTE ATTEMPT BY THE IRA TO MAKE ITSELF LOOK FLEXIBLE AND PUT THE BRITISH GOVERNMENT ON THE DEFENSIVE INDEED BRITISH PRIME MINISTER JOHN MAJOR DISMISSED THE IRA'S CEASEFIRE FOR NEXT WEDNESDAY THROUGH FRIDAY AS A BRIEF PUBLICRELATIONS GESTURE HE ADDED WHAT PEOPLE IN NORTHERN IRELAND WANT IS NOT A CEASEFIRE OVER TWO OR THREE DAYS BUT A PERMANENT END TO VIOLENCE AND IRISH PRIME MINISTER ALBERT REYNOLDS WHO LAST DECEMBER AGREED TO A JOINT PEACE DECLARATION WITH THE BRITISH SAID WHILE ANY REDUCTION IN VIOLENCE WOULD BE WELCOME A SHORTTERM ONE OR ONE OF SHORT DURATION WOULD BE DISAPPOINTING THE TWO GOVERNMENTS IN THE JOINT DECLARATION OFFERED A PLACE AT THE NEGOTIATING TABLE FOR SINN FEIN THE IRA'S LEGAL POLITICAL WING IF THE IRA AGREED TO A PERMANENT CEASEFIRE UNTIL NOW THE IRA HAS BEEN SEEN AS BLOCKING ANY PROGRESS TOWARD PEACE BY REFUSING TO GIVE THE JOINT DECLARATION A CHANCE IT HAS CONTINUED ITS TERRORISM CAMPAIGN MOST PROMINENTLY WHEN IT SHELLED LONDON'S HEATHROW AIRPORT WITH HOMEMADE MORTARS ALTHOUGH NONE OF THE MORTARS EXPLODED BY DESIGN SOME BELIEVE THE ATTACKS ON THREE SEPARATE DAYS WERE SEEN AT LEAST IN PART AS AN INDICATION THAT IT WILL ENTER THE PEACE PROCESS ONLY FROM A POSITION OF STRENGTH BY NOW ANNOUNCING A CEASEFIRE ALBEIT A TEMPORARY ONE THE IRA PUTS THE FOCUS ON THE RESPONSE OF THE BRITISH AND IRISH GOVERNMENTS TO ITS OFFER AND THUS MAKES ITSELF LOOK LESS INTRACTABLE WHILE PUBLICLY DISMISSING THE TEMPORARY CEASEFIRE BOTH GOVERNMENTS UNDOUBTEDLY WILL TRY TO SEE IF IT IS A SIGNAL THAT PROGRESS CAN BE MADE ONLY A WEEK AGO IRISH FOREIGN MINISTER DICK SPRING SAID THAT ALTHOUGH HE WANTED A PERMANENT CEASEFIRE WE WOULD WANT TO BUILD ON A TEMPORARY CEASEFIRE TO CONVINCE THOSE THEY SHOULD GO ALL THE WAY INDEED THE OFFER UNDERSCORES THE DELICATE MANEUVERING THAT IS GOING ON AND THE POSSIBILITY THAT SOME IRA LEADERS MIGHT BE SEEKING WAYS TO COMPROMISE WITHOUT ALIENATING HARDLINERS AND LEADING TO A SPLIT THE IRA STATEMENT ANNOUNCING THE CEASEFIRE DECLARED ITS WILLINGNESS TO BE POSITIVE AND FLEXIBLE IN EXPLORING THE POTENTIAL FOR MOVING THE SITUATION FORWARD THERE ARE NO CONDITIONS ATTACHED TO THIS UNILATERAL INITIATIVE BUT WE HOPE THAT THE BRITISH GOVERNMENT WILL ACCEPT THIS FURTHER OPPORTUNITY IN THE SPIRIT IN WHICH IT IS OFFERED THE OFFER WAS SEEN IN PART AS AN ATTEMPT BY CATHOLIC REPUBLICANS TO WIN CLARIFICATION OF THE JOINTDECLARATION INITIATIVE IN THE KEY FEATURE OF THE DECLARATION THE GOVERNMENTS AGREED TO LET THE MAJORITY OF PEOPLE LIVING IN NORTHERN IRELAND TO DECIDE ITS FUTURE WHETHER TO STAY PART OF THE UK OR TO JOIN IRELAND FOR SINN FEIN AND THE IRA THIS DOESN'T GO FAR ENOUGH BECAUSE THE MAJORITY IS COMPOSED OF PROTESTANTS WHO FAVOR STAYING PART OF BRITAIN 9403310143 940331 INTERNATIONAL GENERAL ACCIDENT PLC LONDON GENERAL ACCIDENT PLC SAID IT IS INCREASING ITS SHAREHOLDING IN ITS SOUTH AFRICAN SUBSIDIARY GASA GENERAL ACCIDENT'S INTEREST WILL RISE TO 997 FROM 517 THROUGH THE ACQUISITION OF THE MINORITY SHAREHOLDINGS HELD BY FIRST NATIONAL BANK OF SOUTH AFRICA LTD AND SOUTH LIFE ASSOCIATION LTD FOR 226 MILLION SOUTH AFRICAN RAND 66 MILLION ON DEC 31 1993 GASA HAD NET ASSETS OF 577 MILLION RAND 9403310142 940331 SEC STATE OFFICIALS CONSIDER JOINT ACTION AGAINST BROKER ABUSE SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION AND STATE SECURITIES REGULATORS ARE CONSIDERING JOINT ACTION TO DEAL WITH ABUSIVE SECURITIESSALES PRACTICES BY SOCALLED ROGUE BROKERS THE SEC THE SELFREGULATORY ORGANIZATIONS AND THE STATES WANT TO DEAL EFFECTIVELY WITH SALES PRACTICE ABUSES SUCH AS CHURNING UNSUITABLE RECOMMENDATIONS MISREPRESENTATIONS AND UNAUTHORIZED TRADING BY SECURITIES PROFESSIONALS THE COMMISSION SAID IN PARTICULAR IT SAID STATE SECURITIES REGULATORS AND THE SEC SHARE A CONCERN ABOUT PERSONS WHO HAVE A HISTORY OF CUSTOMER COMPLAINTS ARBITRATION OR OTHER LITIGATION OR DISCIPLINARY ACTIONS SOME KEY MEMBERS OF CONGRESS ALSO ARE EAGER TO REMEDY THE ROGUEBROKER PROBLEM THE SEC'S COMMENTS WERE PUBLISHED IN YESTERDAY'S FEDERAL REGISTER AS THE AGENCY OUTLINED THE TOPICS TO BE ADDRESSED AT AN APRIL 18 SECURITIES LAW CONFERENCE IT WILL HOLD JOINTLY WITH THE NORTH AMERICAN SECURITIES ADMINISTRATORS ASSOCIATION THE AGENCY SAID CONFERENCE PARTICIPANTS WILL DISCUSS THE NEED FOR GREATER COOPERATION IN ADDRESSING SALES PRACTICE ABUSES PARTICULARLY BY RECIDIVISTS AND POSSIBLE APPROACHES SUCH AS JOINT EXAMINATION EFFORTS TO IDENTIFYING AND DISCIPLINING VIOLATORS THE SEC SAID THE CONFERENCE ALSO WILL FOCUS ON DISCLOSURE AND OTHER ISSUES RELATED TO DERIVATIVES WHICH ARE COMPLEX FINANCIAL INSTRUMENTS WHOSE VALUE DERIVES FROM SOME UNDERLYING ASSET SUBSTANTIAL CONGRESSIONAL INTEREST IN STIFFER REGULATION OF DERIVATIVES IS EXPECTED TO ACCELERATE ONCE THE GENERAL ACCOUNTING OFFICE UNVEILS ITS REPORT ON DERIVATIVES THAT LONGAWAITED REPORT IS EXPECTED IN APRIL REPRESENTATIVES FROM THE SEC AND THE STATE ADMINISTRATORS GROUP ALSO WILL DISCUSS THE EXTENT TO WHICH MANAGERS OF MUTUALFUND PORTFOLIOS TRADE FOR THEIR OWN ACCOUNTS ANY ABUSES THAT MAY BE ASSOCIATED WITH THAT PRACTICE AND WHETHER STEPS SHOULD BE TAKEN TO CURB THE PRACTICE THE SEC SAID 9403310141 940331 MARKETING & MEDIA ADVERTISING SAATCHI'S CAMPBELL MITHUN LOSES KOOL IN A SUDDEN ACCOUNT SWITCH BY KEVIN GOLDMAN BROWN & WILLIAMSON TOBACCO DELIVERED A MAJOR BLOW TO CAMPBELL MITHUN ESTY BY UNEXPECTEDLY FIRING THE AGENCY FROM AN ESTIMATED COMBINED 30 MILLION IN CIGARETTE ADVERTISING GREY ADVERTISING WON THE BIGGER ACCOUNT FOR KOOL MENTHOL CIGARETTE WITH BILLINGS ESTIMATED AT 20 MILLION ANOTHER BROWN & WILLIAMSON AGENCY TATHAM/RSCG OF CHICAGO PICKS UP THE SMALLER CAPRI AND GENERICCIGARETTE ACCOUNTS THE ACCOUNT LOSS WHICH WILL RESULT IN LAYOFFS AT CAMPBELL MITHUN'S NEW YORK OFFICE MARKS THE SECOND BIG DEFECTION IN SIX MONTHS LAST OCTOBER CHRYSLER REASSIGNED DOMESTIC AND CANADIAN ADVERTISING FOR ITS JEEP/EAGLE DIVISION VALUED AT 135 MILLION TO BOZELL WORLDWIDE A UNIT OF BOZELL JACOBS KENYON & ECKHARDT THIS ISN'T SOMETHING I'M JUMPING OUT OF THE WINDOW OVER SAYS WILLIAM D DUNLAP WORLDWIDE CHIEF EXECUTIVE OFFICER OF CAMPBELL MITHUN A UNIT OF SAATCHI & SAATCHI WE HAVE 20 PEOPLE ASSIGNED EXCLUSIVELY TO THE KOOL BUSINESS AND I HOPE THE LAYOFFS WILL BE MINIMAL THE NEW YORK OFFICE'S 170 EMPLOYEES ARE LEFT WITH 17 CLIENTS ONLY ONE OF WHICH TEXACO IS A MAJOR SPENDER OTHER CLIENTS INCLUDE B MANISCHEVITZ TRAVELERS AND PLAYBOY BROWN & WILLIAMSON HOPES GREY CAN REKINDLE THE KOOL BRAND WHICH HAS SEEN A STEEP DECLINE IN SALES AND MARKET SHARE IN ADDITION BROWN & WILLIAMSON SAID GREY WILL HANDLE INTERNATIONAL ADVERTISING FOR KENT BARCLAY VICEROY AND PALL MALL ACCORDING TO ADVERTISING EXECUTIVES BROWN & WILLIAMSON MADE THE DECISION RECENTLY TO JETTISON CAMPBELL MITHUN FROM ITS AGENCY ROSTER BECAUSE IT WANTED A GLOBAL STRATEGY FOR KOOL GREY HAS WORKED WITH BRITISH AMERICAN TOBACCO WHICH OWNS BROWN & WILLIAMSON SINCE 1963 THE LAST TIME GREY HAD A CIGARETTE CLIENT WAS IN 1981 WHEN IT HANDLED ADVERTISING FOR VICEROY FOR THREE YEARS THIS TIME GREY HAS ITS WORK CUT OUT FOR IT SALES OF KOOL WHICH WAS INTRODUCED IN 1933 ARE IN A FREE FALL LAST YEAR IT HAD 3 OF THE MARKET TO RANK NO 9 COMPARED WITH 43 OF THE MARKET WITH A NO 6 RANKING IN 1992 ACCORDING TO JOHN C MAXWELL JR OF WHEAT FIRST SECURITIES IT IS THE LOWESTRANKED MAJORBRAND MENTHOL CIGARETTE LAGGING BEHIND NEWPORT NO 5 IN 1993 DOWN FROM NO 4 AND SALEM NO 7 IN 1993 DOWN FROM NO 3 MR MAXWELL SAYS KOOL HAS BEEN UNDER PRESSURE TO FIX ITS DESCENDING SITUATION FOR SOME TIME IN 1989 KOOL HAD 59 OF THE MARKET THAT DROPPED TO 49 IN 1990 46 IN 1991 AND 43 IN 1992 RIVAL NEWPORT HAS GENERALLY MAINTAINED ITS SHARE SINCE 1989 IT HAS FLUCTUATED BETWEEN 46 AND 48 KOOL'S ADVERTISING HAS BEEN AS LACKLUSTER AS ITS SALES THE MOST RECENT PITCH IS UNINSPIRED WITH MODELS HOLDING A KOOL AND HEADLINES DECLARING KOOL AND THEN SOME VERY KOOL AND MENTHOL IS KOOL NO DOUBT ABOUT IT IN 1991 CAMPBELL MITHUN TESTED A CAMPAIGN USING A CARTOON PENGUIN WEARING SHADES A BUZZCUT AND DAYGLO SNEAKERS AND TAKING A DRAG ON A KOOL THE CAMPAIGN WHICH WAS NEVER SHOWN NATIONALLY IMMEDIATELY DREW THE FIRE OF ANTISMOKING ADVOCATES WHO FELT IT WOULD ENTICE UNDERAGE CONSUMERS TO BEGIN SMOKING THE SAME ALLEGATION OFTEN MADE AGAINST THE JOE CAMEL ADS FOR RJ REYNOLDS' CAMEL BRAND THERE WASN'T A CREATIVE SHOOTOUT INVOLVED IN KOOL'S AGENCY SWITCH GREY PRODUCED NO MOCK CAMPAIGNS BUT THE AGENCY ALREADY KNOWS THE DIRECTION IT WON'T GO IN AN ICON SUCH AS A PENGUIN ISN'T THE RIGHT IMAGE FOR THE BRAND SAYS STEVEN W DAMMERS EXECUTIVE VICE PRESIDENT AT GREY THE RIGHT IMAGE IS REFRESHMENT AND I'M NOT SURE A PENGUIN FITS THAT ONE OF THE FIRST THING WE HAVE TO DO IS TAKE A HARD LOOK AT THE MENTHOL BUSINESS AND THE KOOL FRANCHISE ADDS MR DAMMERS WHO DOESN'T FORESEE NEW ADS FOR AT LEAST SIX MONTHS AND POSSIBLY NOT UNTIL THE END OF THE YEAR KOOL TENDS TO ATTRACT OLDER SMOKERS AND MR DAMMERS SAYS ANY BRAND THAT HAS AN AGING FRANCHISE AND I'M NOT ONLY TALKING ABOUT CIGARETTES FACES A LONGTERM PROBLEM MR DUNLAP AT CAMPBELL MITHUN CALLS THE KOOL LOSS A MIXED BLESSING CIGARETTE ADVERTISING HE SAYS TENDS TO POLARIZE AN AGENCY BECAUSE SOME EMPLOYEES FIND IT DISTASTEFUL TO WORK FOR A TOBACCO COMPANY WE DIDN'T SEE KOOL PLAYING AN IMPORTANT ROLE IN OUR AGENCY'S FIVEYEAR PLAN SAYS HOWARD LISZT CHIEF OPERATING OFFICER WE LOST A MAJOR CLIENT IN OUR NEW YORK OFFICE BUT I WOULDN'T CLASSIFY IT AS A MAJOR BLOW WE LOST AN ACCOUNT THAT'S AN OCCUPATIONAL HAZARD CAMPBELL MITHUN WAS ABLE TO KEEP THE KOOL ACCOUNT FOR EIGHT AND A HALF YEARS WHICH MR DUNLAP CALLS A LONG TIME IN THIS BUSINESS WE'RE IN FINE SHAPE HE CONTENDS ADDING THAT DESPITE ITS LOSSES THE AGENCY WON NEW BUSINESS LAST YEAR AND ITS OVERALL BILLINGS GREW 5 TO 11 BILLION MR DUNLAP CHARACTERIZES THE LOSS OF THE BROWN & WILLIAMSON BUSINESS AS A GLANCING BLOW AND HE DOESN'T COUNT THE CHRYSLER SITUATION AS A LOSS AT ALL THE AGENCY'S DETROIT OPERATION WAS BOUGHT BY BOZELL AND ALL OF ITS EMPLOYEES WERE RETAINED WE RECEIVED A SUBSTANTIAL PAYMENT FOR THAT SAYS MR DUNLAP MR DUNLAP SAYS THE AGENCY IS USING A NEW SYSTEM OF TRYING TO ATTRACT NEW BUSINESS CONTACTING POTENTIAL CLIENTS ON A COLDCALL BASIS CAMPBELL MITHUN IS CURRENTLY IN 11 NEW ACCOUNT PITCHES INCLUDING NEC TECHNOLOGIES AND LENNOX WITH A TOTAL VALUE OF 200 MILLION MR DUNLAP A SELFDESCRIBED REALIST KNOWS HE WON'T WIN ALL THAT NEW BUSINESS HE IS CONFIDENT HOWEVER OF SNARING 10 WHICH COINCIDENTALLY IS ABOUT THE SAME AMOUNT THE AGENCY LOST YESTERDAY GRAND METROPOLITAN'S CARILLON IMPORTERS ENDED A HEATED AGENCY SEARCH FOR STOLICHNAYA AND SEVERAL OTHER IMPORTED VODKAS BY NAMING MARGEOTES/FERTITTA DONAHER & WEISS TO THE ESTIMATED 10 MILLION ACCOUNT THE ASSIGNMENT IS LIKELY TO BLOSSOM INTO A 20 MILLION BUSINESS HOWEVER IF CARILLON CONSOLIDATES TWO OTHER SPIRITS BRANDS ACCOUNTS GRAND MARNIER AND BOMBAY SAPPHIRE GIN WITH THE NEW AGENCY WHEN IT IS TIME TO MAKE A CHANGE CERTAINLY MARGEOTES WILL BE CONSIDERED AS A PRIORITY SAID MICHEL ROUX CARILLON CHIEF EXECUTIVE OFFICER ADDING THAT A FORMAL DECISION HASN'T BEEN MADE THE INCUMBENT ON THOSE ACCOUNTS OMNICOM GROUP'S TBWA ADVERTISING IS EXPECTED TO RESIGN TO RESOLVE A CONFLICT THAT AROSE LAST MONTH WHEN CARILLON LOST DISTRIBUTION RIGHTS TO ANOTHER IMPORTED PREMIUM VODKA ABSOLUT TO SEAGRAM CO TBWA WAS RETAINED AS THE ABSOLUT AD AGENCY PUTTING IT IN THE UNUSUAL POSITION OF WORKING FOR TWO LIQUOR RIVALS AT ONCE AFTER THE ABSOLUT LOSS CARILLON WON DISTRIBUTION RIGHTS TO STOLICHNAYA FROM PEPSICO OTHER CONTENDERS FOR THE STOLICHNAYA ACCOUNTS WERE MULLEN ADVERTISING OF WENHAM MASS AND GIGANTE VAZ & PARTNERS OF NEW YORK AS EXPECTED PEPSICO UNVEILED PLANS TO PUT FRESHNESS DATES ON CANS OF DIET PEPSI AND LAUNCHED A NATIONAL AD CAMPAIGN TO INTRODUCE THE CONCEPT TO CONSUMERS CRAIG WEATHERUP PEPSICOLA'S NORTH AMERICAN CHIEF EXECUTIVE AND PRESIDENT APPEARS IN THE NEW COMMERCIALS TO EXPLAIN THE DATES CONSUMERS ALSO ARE SHOWN CHECKING THE BOTTOM OF DIET PEPSI CANS THE ADS CREATED BY OMNICOM GROUP'S BBDO ARE SET TO RUN IN PLACE OF IMAGE ADVERTISING FOR THE DIET PEPSI BRAND DURING THE ALLIMPORTANT SUMMER SEASON PEPSI SAID ALL ITS CARBONATED BEVERAGES WILL HAVE FRESHNESS DATES BY JAN 1 BUT IT DOESN'T PLAN SPECIAL AD CAMPAIGNS FOR THE OTHER BRANDS ABOUT ONE IN 12 PEOPLE HAVE EXPERIENCED OFFTASTING SOFT DRINKS PEPSI SAID IN WHICH INGREDIENTS SUCH AS ASPARTAME HAVE ESSENTIALLY GONE STALE PEPSI SAID IT TESTED THE FRESHNESSDATING CONCEPT INCLUDING THE ADS FOR A YEAR IN OMAHA NEB DURING WHICH LOCAL DIET PEPSI SHIPMENTS INCREASED 8 AND MARKET SHARE ROSE BY A POINT BASEBALL SPONSOR ANHEUSERBUSCH COS AGREED TO BECOME BEER SPONSOR OF THE BASEBALL NETWORK THE NEW JOINT VENTURE OF MAJOR LEAGUE BASEBALL NBC AND ABC THE MULTIYEAR PACT CALLS FOR THE BREWER TO BUY AD TIME DURING BASEBALL NETWORK GAMES AND GIVES THE COMPANY RIGHTS TO CONDUCT NATIONAL PROMOTIONS INVOLVING BASEBALL OTHER MULTIYEAR SPONSORS INCLUDE SHERWINWILLIAMS CO AND MCI COMMUNICATIONS CORP 9403310140 940331 WHO'S NEWS CALIFORNIA AMPLIFIER INC CALIFORNIA AMPLIFIER INC CAMARILLO CALIF IRA IKE CORON WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER SUCCEEDING 45YEAROLD BARRY HALL WHO RESIGNED TO PURSUE OTHER INTERESTS MR CORON 65 PREVIOUSLY WAS A VICE PRESIDENT AND GENERAL MANAGER AT TRW INC'S TRW AUTOMOTIVE SECTOR CALIFORNIA AMPLIFIER MAKES EQUIPMENT USED IN THE DISTRIBUTION OF TELEVISION SIGNALS 9403310139 940331 FOREIGN EXCHANGE DOLLAR DROPS AGAINST YEN DESPITE BID BY BANK OF JAPAN TO PROP US CURRENCY BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR DROPPED AGAINST THE YEN YESTERDAY ON A SELLOFF SPARKED BY CONTINUING WORRIES OVER ESCALATING USJAPAN TRADE TENSIONS BUT THE FALL WAS CUSHIONED IN PART BY REPEATED BANK OF JAPAN INTERVENTION THE DOLLAR MADE LITTLE HEADWAY AGAINST THE MARK AFTER FAILING TO STAY ABOVE KEY RESISTANCE LEVELS FOLLOWING THE BUNDESBANK'S LATEST CUT IN ITS SECURITIES REPURCHASE OR REPO RATE THE US CURRENCY MANAGED SOMEWHAT LARGER GAINS AGAINST STERLING WHICH HAS BEEN WOUNDED THIS WEEK ON MARKET ANXIETIES ABOUT THE FUTURE OF BRITISH PRIME MINISTER JOHN MAJOR'S LEADERSHIP LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 10285 YEN DOWN FROM 10313 YEN LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 16750 MARKS UP A BIT FROM 16735 MARKS STERLING WAS TRADING AT 14790 DOWN FROM 14845 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10288 YEN AND AT 16735 MARKS THE DOLLAR'S FALL AGAINST THE YEN WAS PRECIPITATED BY THE CRITICAL RECEPTION ACCORDED BY THE US TO JAPAN'S MARKETOPENING MEASURES THAT ARE INTENDED TO SLASH THAT NATION'S GAPING TRADE SURPLUS THE MARKET SHOOK OFF A RUMORED LINEINTHESAND AT 103 YEN DRAWN BY THE BANK OF JAPAN AND WHICH SENT THE DOLLAR SCURRYING TO AN INTRADAY LOW OF 10285 YEN THE US CURRENCY MADE AN IMPRESSIVE ALBEIT BRIEF RECOVERY TO AN INTRADAY HIGH OF 10365 YEN ABOUT THREE HOURS LATER ON BANK OF JAPAN INTERVENTION AND WHAT SOME TRADERS SAW AS HEAVY BUYING BY JAPANESE INSURANCE COMPANIES BUT WITH MARKET SENTIMENT OVERWHELMINGLY NEGATIVE TOWARD THE DOLLAR IT GYRATED FURTHER AND FURTHER BELOW KEY TECHNICAL SUPPORT AT 103 YEN ANY SIGN OF USJAPAN TRADE TENSIONS TENDS TO WEAKEN THE DOLLAR AS MARKET PARTICIPANTS BET THE US WILL RENEW PRESSURE FOR A STRONG YEN AS A WAY TO BRING ABOUT SHRINKAGE IN JAPAN'S HUGE TRADE SURPLUS THE DOGFIGHT IS NOW ON AND WE'LL SEE AGGRESSIVE TRADES PUSH THE DOLLAR TO 101 YEN SAID ANGELO EVANGELISTA VICE PRESIDENT CORPORATE FOREIGN EXCHANGE AT THE BANK OF BOSTON THE DOLLAR REGISTERED ITS 1994 LOW OF 101 YEN IN THE AFTERMATH OF THE FEB 11 COLLAPSE OF USJAPAN TRADE TALKS THE US IS THROUGH ACCEPTING VAGUE AGREEMENTS WITH JAPAN MR EVANGELISTA ADDED MEANWHILE THE DOLLAR FAILED TO FINISH THE DAY SIGNIFICANTLY HIGHER YESTERDAY DESPITE YET ANOTHER CUT BY THE BUNDESBANK IN THE REPO RATE ITS FAVORED INSTRUMENT FOR INFLUENCING MONEY MARKETS THE GERMAN CENTRAL BANK ANNOUNCED IT HAD ALLOCATED REPOS AT 576 A SHAVING OF FOUR BASIS POINTS FROM THE WEEK BEFORE INITIALLY THE CUT PROMPTED AN ACROSSTHEBOARD SELLOFF IN THE MARK THE DOLLAR TRIED TO GO OVER 16800 MARKS BUT IT JUST COULDN'T HOLD IT SAID EARL JOHNSON VICE PRESIDENT AT HARRIS TRUST & SAVINGS BANK CHICAGO HE ADDED THAT THE DOLLAR'S INABILITY TO SUSTAIN A SIGNIFICANT ADVANCE FRUSTRATED THE MARKET AND SENT THE US CURRENCY DRIFTING DOWNWARD THE MARK REMAINED RELATIVELY WEAK AGAINST MOST EUROPEAN CURRENCIES MEANWHILE THE CANADIAN DOLLAR CONTINUED TO SET NEW SEVENYEAR LOWS DESPITE REPEATED ATTEMPTS BY THE BANK OF CANADA TO SUPPORT THE CURRENCY THE US DOLLAR WAS AT 13791 CANADIAN DOLLARS LATE YESTERDAY UP FROM 13760 CANADIAN DOLLARS LATE TUESDAY THE CANADIAN DOLLAR HAS BEEN UNDER ENORMOUS PRESSURE FROM JAPANESE DISINVESTMENT PRIMARILY FROM THE REPATRIATION OF FOREIGN ASSETS PRIOR TO JAPAN'S MARCH 31 FISCAL YEAR END CANADA'S CURRENCY ALSO HAS BEEN HURT BY THE LACK OF ANY SERIOUS ATTEMPT TO CUT THE NATION'S BUDGET DEFICIT TRADERS SAID 9403310138 940331 MARKETSCAN DIET DOG FOODS CAUSE FEW TAILS TO WAG BY KATHLEEN DEVENY DOGS ARE FED UP WITH DIETING DURING THE 1980S PETFOOD MAKERS ROLLED OUT LIGHT OR LEAN VERSIONS OF SUCH VENERABLE BRANDS AS ALPO KIBBLES 'N BITS AND PURINA'S CHUCK WAGON BUT CONSUMERS LOSING INTEREST THEMSELVES IN LIGHT CUISINE ALSO SEEM LESS INCLINED TO BUY DIET PET FOOD SUPERMARKET SALES OF MANY DIET PET FOODS ARE DECLINING PRECIPITOUSLY ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE TASTE IS MOSTLY TO BLAME FOR THE SALES SLUMP LIKE HUMANS MOST ANIMALS PREFER HIGHFAT MEALS PET NUTRITIONISTS SAY TO MAKE TASTIER LOWFAT DOG FOODS WHICH TYPICALLY HAVE 15 TO 25 LESS FAT THAN THE STANDARD FARE MARKETERS OFTEN ADD SUCH INGREDIENTS AS GARLIC AND CHEESE BUT DOGS AREN'T EASILY FOOLED ANITA LEONE OF LAWRENCEVILLE NJ TURNED TO DIET DOG FOOD AFTER BRENDAN TIPPED THE SCALES AT 126 POUNDS BUT THE LAB AND BLOODHOUND MIX WOULDN'T TOUCH ANY OF THE FIVE OR SIX BRANDS MS LEONE TRIED PREFERRING TO STEAL HER CATS' FOOD INSTEAD SHE ULTIMATELY SWITCHED BACK TO BRENDAN'S REGULAR DOG FOOD BRAND BUT SIGNIFICANTLY REDUCED THE SIZE OF HIS MEALS TODAY BRENDAN WEIGHS A MORE RESPECTABLE 113 LYNDA BIRMANTAS AN EXECUTIVE SECRETARY IN CHICAGO DOESN'T SEE A NEED FOR SPECIAL DIET FOOD EITHER SHE SAYS SHE FEELS HER 11 DOGS ONCE A WEEK TO SEE IF THEY'RE GETTING HEAVY IF MY DOGS GET FAT I JUST GIVE THEM LESS FOOD SHE SAYS MS BIRMANTAS ADDS THAT SHE ONCE TRIED FEEDING DIET FOOD TO HER FIVE CATS BUT THEY ATE SO MUCH OF IT SO FAST IT REALLY WASN'T EFFECTIVE SOME OF THE SALES DECLINE IN DIET PET FOODS REFLECT SHIFTS IN SHOPPING HABITS NUTRITIONALLY CONCERNED CONSUMERS ARE BUYING MORE PREMIUM PET FOODS SUCH AS THE IAMS AND HILL'S SCIENCE DIET BRANDS AT PET STORES WHATEVER THE PETS ARE EATING MOST OF THEM AREN'T GETTING SKINNIER ANIMAL EXPERTS SAY AT LEAST 30 OF US PETS ARE SERIOUSLY OVERWEIGHT ALTHOUGH SOME CATS GET CHUBBY AS THEY AGE THE PROBLEM IS MORE COMMON AMONG DOGS WHICH TEND TO BE MORE GLUTTONOUS BY NATURE DOGS RARELY SUFFER FROM HEART DISEASE BUT OBESITY CAN EXACERBATE OTHER CANINE HEALTH PROBLEMS INCLUDING DIABETES IT CAN ALSO CAUSE BACKACHES FOR SUCH BREEDS AS DACHSHUNDS SOME MARKETERS HAVE REFORMULATED THEIR PRODUCTS AND REVERTED TO PITCHING FLAVOR RATHER THAN LOW FAT CONTENT RALSTON PURINA CO FOR INSTANCE RELAUNCHED ITS CHUCK WAGON LEAN BRAND AS CHUCK WAGON STAMPEDE TOUTING BETTER CHICKEN BEEF AND CHEESE FLAVORS AND CLAIMING DOGS PREFER THE NEW CONCOCTION 4 TO 1 OVER THE LEAN FORMULA THE COMPANY CALLS REDUCEDFAT PET FOOD A LATE 1980S TREND MARKETERS BLAME OWNERS FOR FAT PETS SOME SAY MANY OWNERS FEEL INSULTED IF ANYONE SUGGESTS THEIR ANIMALS ARE OVERWEIGHT WHAT'S MORE IT'S A REAL TRICK FOR US TO GET OWNER COMPLIANCE AND PREVENT THEM FROM GIVING IN TO BEGGING EYES SAYS MARK FINKE DIRECTOR OF NUTRITION RESEARCH FOR ALPO OVERWEIGHT PETS OFTEN HAVE OVERWEIGHT OWNERS SAYS JIM HUMPHRIES A VETERINARIAN WHO IS HOST OF A NATIONALLY SYNDICATED CABLETELEVISION SHOW CALLED PET CARE MAGAZINE BECAUSE MANY PEOPLE ARE TIRED OF THEIR OWN LIGHT FOODS THEY ARE LESS LIKELY TO PICK UP SUCH PRODUCTS FOR THEIR PETS SAYS DR HUMPHRIES THEY ARE OFTEN PEOPLE WHOSE MOTHERS TAUGHT THEM THAT LOVE IS DISPLAYED THROUGH A GOOD PLATE OF FOOD 9403310137 940331 WHO'S NEWS CRAY RESEARCH INC CRAY RESEARCH INC EAGAN MINN PHILIP G HEASLEY VICE CHAIRMAN FIRST BANK SYSTEM WAS ELECTED A DIRECTOR OF THIS MAKER OF COMPUTERS EXPANDING THE BOARD TO EIGHT MEMBERS 9403310136 940331 WHO'S NEWS RUBBERMAID INC RUBBERMAID INC WOOSTER OHIO GARY E KLEINJAN 45 YEARS OLD WAS NAMED PRESIDENT AND GENERAL MANAGER OF THIS PLASTIC AND RUBBER HOUSEWARE MAKER'S RUBBERMAID OFFICE PRODUCTS INC UNIT HE SUCCEEDS JOHN L MARIOTTI WHO RESIGNED LAST WEEK TO PURSUE OTHER INTERESTS THE COMPANY SAID MR KLEINJAN WAS VICE PRESIDENT AND GENERAL MANAGER OF MICROCOMPUTER ACCESSORIES INC A UNIT OF RUBBERMAID OFFICE PRODUCTS THE COMPANY HASN'T DECIDED IF IT WILL NAME A SUCCESSOR 9403310135 940331 WHO'S NEWS MEDUSA CORP MEDUSA CORP CLEVELAND ALAN E REDEKER 50 YEARS OLD FORMERLY VICE PRESIDENT OF MANUFACTURING OF THE COMPANY'S CEMENT GROUP WAS NAMED VICE PRESIDENT OF THE CORPORATION HE WILL BE RESPONSIBLE FOR CEMENT MANUFACTURING AT THIS PRODUCER AND MARKETER OF PORTLAND AND MASONRY CEMENTS MEDUSA ALSO MINES PROCESSES AND SELLS AGGREGATES AND INDUSTRIAL LIMESTONE PRODUCTS AND PROVIDES CONSTRUCTION SERVICES FOR HIGHWAY SAFETY 9403310134 940331 TECHNOLOGY & HEALTH U S WEST TO BECOME PARTNER IN FIRM RUSSIA IS FORMING FOR PHONE NETWORK BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON A 40 BILLION 10YEAR PLAN TO MODERNIZE THE RUSSIAN TELEPHONE SYSTEM IS SLOWLY MOVING OFF THE DRAWING BOARD AND COMING CLOSER TO FINANCIAL REALITY ACCORDING TO WESTERN EXECUTIVES U S WEST INC SAID YESTERDAY THAT IT HAS ACCEPTED A RUSSIAN INVITATION TO BECOME AN INVESTOR AND THE US PARTNER IN A JOINTSTOCK COMPANY THAT MOSCOW IS FORMING TO BUILD AND MANAGE A NEW NATIONWIDE TELEPHONE NETWORK THE ENGLEWOOD COLO TELEPHONE COMPANY WILL LIKELY BE JOINED AS A PARTNER IN THE PROJECT BY FRANCE TELECOM AND DEUTSCHE BUNDESPOST TELEKOM WITH WHICH THE RUSSIANS ARE STILL NEGOTIATING INVESTMENT TERMS FOR ALL THREE STILL TO BE DECIDED IS HOW MUCH OF THEIR OWN CAPITAL THEY WILL COMMIT AS SEED MONEY FOR THE VENTURE VICTOR PAVLENKO HEAD OF U S WEST'S RUSSIAN INVESTMENT UNIT DECLINED TO ESTIMATE HIS COMPANY'S LIKELY INVESTMENT HE SAID RUSSIAN OFFICIALS HAVE INDICATED THEY WOULD LIKE THE THREE WESTERNERS TO HOLD 25 TO 40 OF THE JOINTSTOCK COMPANY'S EQUITY THOUGH THAT WOULD BE JUST AN ASYET UNDETERMINED FRACTION OF THE PROJECT'S TOTAL FINANCIAL PACKAGE RUSSIAN COMPANIES INCLUDING STATE LONGDISTANCE CARRIER ROSTELECOM WOULD HOLD THE VENTURE'S REMAINING EQUITY AND THE RUSSIANS ARE HOPING ALSO TO ENLIST WESTERN BANKS AND AID AGENCIES IF THE RUSSIANS ACTUALLY PULL IT OFF AND THAT'S STILL A BIG IF GIVEN THE PROJECT'S VAST COST AND POLITICAL COMPLEXITY IT WOULD BE THE WORLD'S BIGGEST TELEPHONEENGINEERING VENTURE THE PROJECT IS DUBBED 50X50 FOR THE 50000 KILOMETERS OR 31000 MILES OF NEW CABLE AND 50 NEW TELEPHONE EXCHANGES ORIGINALLY PLANNED BUT IT HAS SINCE GROWN INTO A REMAKE OF MOST OF RUSSIA'S OVERLOADED UNDERDEVELOPED PHONE SYSTEM OVER 10 YEARS THE RUSSIAN MINISTRY OF POSTS AND COMMUNICATIONS AIMS TO CRISSCROSS THE COUNTRY IN NEW LONGDISTANCE FIBEROPTIC CABLES AND MICROWAVE LINKS AND INSTALL 20 MILLION NEW LOCAL PHONE LINES NEARLY DOUBLING THE CURRENT NUMBER BUT THERE REMAINS A QUESTION OF HOW MUCH GROWTH THERE IS REALISTICALLY GIVEN RUSSIA'S SEVERE ECONOMIC AND POLITICAL PROBLEMS CLEARLY RUSSIA NEEDS A MODERN TELECOMMUNICATIONS NETWORK BUT AT WHAT COST SAYS MARION BOUCHER OF BEAR STEARNS & CO A NEW YORKBASED TELECOMMUNICATIONS ANALYST IT COULD TURN INTO A LONGTERM PLAY AT THE EXPENSE OF BOND AND STOCKHOLDERS THAT TAKES MONEY ON TOP OF MONEY EVEN SOME OF THE PROJECT'S WESTERN SUPPORTERS SAY THE RUSSIANS WILL PROBABLY HAVE TO CUT BACK THE VENTURE'S COST AND SCALE ESPECIALLY WITH THE COUNTRY'S MOUNTING POLITICAL TRAVAILS SPOOKING MANY POTENTIAL INVESTORS MOSCOW'S 40 BILLION FUNDING TARGET IS MUCH TOO HIGH SAID ONE SENIOR DEUTSCHE TELEKOM OFFICIAL HE SAID THE GERMAN PHONE COMPANY INTENDS TO PARTICIPATE WITH FRANCE TELECOM IN THE PROJECT 9403310133 940331 ECONOMY FACTORY ORDERS FELL 1 IN FEBRUARY REFLECTING SLIDE FOR DEFENSE AIRCRAFT BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORDERS TO US FACTORIES FELL 1 DURING FEBRUARY REFLECTING A STEEP DECLINE IN DEFENSE AND AIRCRAFT SPENDING BUT AS WITH THE RECENT REPORT ON DURABLEGOODS ORDERS THE PARTICULARS LOOK BETTER THAN THE BROAD PICTURE FEBRUARY'S DROP TO 26991 BILLION FOLLOWED A REVISED RISE OF 24 DURING JANUARY WHEN ORDERS TOTALED 27262 BILLION THE COMMERCE DEPARTMENT SAID LAST MONTH'S DROP WAS THE FIRST SINCE JULY DESPITE THE DECLINE IN OVERALL ORDERS THE DETAILS SHOW STRENGTH SAID MARILYN SCHAJA OF DONALDSON LUFKIN & JENRETTE ORDERS FOR NONDURABLE GOODS WHERE MANUFACTURING HAS BEEN WEAK ROSE 09 THE FOURTH STRAIGHT ADVANCE ED YARDENI OF CJ LAWRENCE CALLED THAT NEWS ESPECIALLY ENCOURAGING NOTING THAT ORDERS FOR NONDURABLE GOODS OR GOODS EXPECTED TO LAST LESS THAN THREE YEARS WERE FLAT THROUGH MOST OF LAST YEAR OTHER DURABLEGOODS PURCHASES SUCH AS FURNITURE AND APPLIANCES HAVE BEEN STRONGER IN THE PAST YEAR SPARKED BY NEWHOME CONSTRUCTION EXCLUDING AIRCRAFT AND PARTS ORDERS FOR NONDEFENSE CAPITAL GOODS ROSE 49 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9403310132 940331 WHAT'S NEWS WORLDWIDE ISRAEL AND THE PLO REACHED A HEBRON ACCORD ADVANCING PEACE PROSPECTS THE AGREEMENT DEALS WITH SECURITY FOR PALESTINIANS IN THE WEST BANK TOWN FOLLOWING A MASSACRE THERE LAST MONTH THAT DERAILED HISTORIC TALKS ON ISRAELI WITHDRAWAL FROM AND PALESTINIAN AUTONOMY IN THE GAZA STRIP AND JERICHO REPRESENTATIVES OF BOTH SIDES SAID THOSE NEGOTIATIONS CAN NOW RESUME THE HEBRON ACCORD ALLOWS FOR PATROLS BY AN INTERNATIONAL OBSERVER FORCE BUT NEGOTIATORS DECLINED TO GIVE FURTHER DETAILS THE US CRITICIZED ISRAEL FOR MONDAY'S KILLING OF SIX PLO MEMBERS A PLO OFFICIAL IN GAZA SAID THE ISRAELI ARMY APPEARS TO BE PREPARING TO WITHDRAW TOP US OFFICIALS ARRIVED IN SARAJEVO TO PRESS SERBS TO JOIN A BOSNIA PEACE SETTLEMENT AS BOSNIAN MUSLIMS AND CROATS APPROVED A CONSTITUTION FOR A NEW FEDERATION SHALIKASHVILI JOINT CHIEFS OF STAFF CHAIRMAN SAID THE US WOULD SEND PEACEKEEPING TROOPS IF A PACT IS REACHED CROATIA AND REBEL SERBS EARLIER AGREED ON A TRUCE IN KRAJINA FIVE ANC SUPPORTERS WERE KILLED FOLLOWING A MEETING WITH ZULU RIVALS IN A NATAL HOSTEL A SURVIVING MEMBER OF THE AFRICAN NATIONAL CONGRESS GROUP SAID IT HAD GONE TO THE WORKERS' HOSTEL TO NEGOTIATE AN END TO LOCAL VIOLENCE THE KILLINGS BROUGHT RENEWED CALLS BY ANC OFFICIALS FOR A DECLARATION OF A STATE OF EMERGENCY IN THE ZULU HEARTLAND CHINA WILL PERMIT THE UN SECURITY COUNCIL TO APPROVE A RESOLUTION URGING NORTH KOREA TO END ITS REFUSAL TO ALLOW INTERNATIONAL INSPECTIONS OF SUSPECTED NUCLEAR WEAPONS SITES SOUTH KOREA'S FOREIGN MINISTER SAID THE MINISTER SAID HOWEVER THAT THE RESOLUTION WOULD IMPOSE ONLY MINIMUM REQUIREMENTS ON THE PYONGYANG REGIME BERLUSCONI EXPRESSED OPTIMISM THAT HIS RIGHTWING COALITION VICTORIOUS IN LANDMARK ITALIAN ELECTIONS THIS WEEK WOULD BE ABLE TO FORM A GOVERNMENT FOLLOWING A MEETING WITH THE LEADER OF THE NORTHERN LEAGUE ONE OF HIS COALITION PARTNERS THE OTHER PARTNER IS A NEOFASCIST GROUP SET TO SHARE POWER IN ITALY FOR THE FIRST TIME SINCE MUSSOLINI'S DAY THE US LIFTED RESTRICTIONS ON EXPORTS OF HIGHTECHNOLOGY GOODS TO CHINA AND THE FORMER SOVIET BLOC THE MOVE SIGNALS THE DISAPPEARANCE OF THE COORDINATING COMMITTEE FOR MULTILATERAL EXPORT CONTROLS OR COCOM A COLD WAR RELIC FORMED IN 1949 LEAVING ONLY A PATCHWORK OF AGREEMENTS AMONG MEMBER COUNTRIES THE IRA ANNOUNCED A THREEDAY CEASEFIRE NEXT WEEK ITS SECOND TEMPORARY TRUCE SINCE BRITAIN AND IRELAND SAID THEY WOULD HOLD TALKS WITH THE GROUP IF IT RENOUNCED VIOLENCE LONDON AND DUBLIN OFFICIALS SAID THE OFFER DIDN'T GO FAR ENOUGH MAJOR ARRIVING ON A VISIT TO NORTHERN IRELAND DISMISSED IT AS CYNICAL A SALINAS AIDE WAS GIVEN A NEW POST IN THE US IN A MOVE THAT MAY INDICATE THE MEXICAN PRESIDENT IS TRYING TO QUELL RULINGPARTY INFIGHTING AFTER HE NAMED AN ALLY AS ITS PRESIDENTIAL CANDIDATE THE NEW CANDIDATE IS VIEWED AS TOO CLOSELY ASSOCIATED WITH THE SALINAS ADMINISTRATION AND PARTICULARLY THE AIDE WHO WAS REMOVED AS CHIEF OF STAFF A BIG STUDY OF MAGNETIC FIELDS FOUND A LINK BETWEEN AT LEAST ONE RARE TYPE OF LEUKEMIA AND OCCUPATIONAL EXPOSURE BUT INDICATED THE RISK IS SMALL THE STUDY TO BE PUBLISHED IN THE AMERICAN JOURNAL OF EPIDEMIOLOGY WAS SPONSORED BY THREE UTILITIES MORE THAN 200000 WORKERS IN CANADA AND FRANCE TOOK PART A NUCLEAR SUBMARINE ACCIDENT KILLED 10 CREWMEN INCLUDING THE COMMANDER ABOARD THE FRENCH BOAT EMERAUDE IN THE MEDITERRANEAN THE DEATHS OCCURRED WHEN STEAM LEAKED IN THE TURBINE ROOM AND DEFENSE OFFICIALS SAID NUCLEAR COMPONENTS WEREN'T AFFECTED THE EMERAUDE MADE IT BACK TO ITS BASE IN TOULON UNDER AUXILIARY POWER CNN WAS CHARGED WITH CONTEMPT OF COURT FOR IGNORING A JUDGE'S ORDER AND BROADCASTING TAPE RECORDINGS IN 1990 OF FORMER PANAMANIAN DICTATOR NORIEGA'S CONVERSATIONS WITH HIS ATTORNEYS' STAFF THE ALLNEWS NETWORK PLEADED INNOCENT A JULY TRIAL IS SET CLINTON SIGNED LEGISLATION ALLOWING THE FEDERAL GOVERNMENT TO OFFER BUYOUTS OF AS MUCH AS 25000 TO ITS WORKERS IF THEY RESIGN OR RETIRE EARLY THE LAW IS PART OF HIS EFFORT TO CUT THE BUREAUCRACY BY 12 BY FISCAL 1999 DIED REP WILLIAM NATCHER 84 KENTUCKY DEMOCRAT WHO SET A RECORD FOR VOTES IN THE HOUSE TUESDAY IN BETHESDA MD 9403310131 940331 TJ SYSTEMS SLATES PURCHASE HAUPPAUGE NY TJ SYSTEMS CORP SAID IT AGREED TO ACQUIRE PACIFIC MOUNTAIN COMPUTER PRODUCTS INC VAN NUYS CALIF TERMS WEREN'T DISCLOSED THE ACQUISITION WOULD INCREASE TJ SYSTEMS' ANNUAL REVENUE TO 20 MILLION OR 40 THE COMPANY SAID TJ IS ENGAGED PRIMARILY IN THE LEASING OF COMPUTER AND TELECOMMUNICATIONS EQUIPMENT TJ SAID OWNING CLOSELY HELD PACIFIC WHICH DISTRIBUTES COMPUTER EQUIPMENT WOULD BROADEN TJ'S CUSTOMER BASE WHILE PROVIDING DIVERSIFICATION 9403310130 940331 CREDIT RATINGS DAYTON POWER & LIGHT CO DAYTON OHIO MOODY'S INVESTOR'S SERVICE INC UPGRADED THIS COMPANY'S SENIOR SECURED DEBT RATING TO SINGLEA1 FROM SINGLEA2 AND ITS PREFERRED STOCK RATING TO A1 FROM A2 BASED ON THE COMPANY'S CONTINUED IMPROVEMENT IN FINANCIAL PERFORMANCE THE MOVE AFFECTS 8588 MILLION OF DEBT DAYTON POWER IS A SUBSIDIARY OF DPL INC AND PROVIDES ELECTRIC AND GAS SERVICE TO PORTIONS OF WESTCENTRAL OHIO 9403310129 940331 HEARD ON THE STREET KIDS LOVE CHUCK E CHEESE'S PROMPTING SOME TO LOOK BEYOND SHOWBIZ PARENT'S PROFIT SLIDE BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL METUCHEN NJ AT THE INSISTENCE OF MY FIVEYEAROLD DAUGHTER WE SPENT A RAINY SUNDAY LUNCHTIME AT OUR LOCAL CHUCK E CHEESE'S JUST OFF ROUTE 1 IN NEARBY EDISON CHUCK E CHEESE'S ARE OPERATED BY SHOWBIZ PIZZA TIME AN IRVING TEXAS RESTAURANT CHAIN THAT CATERS TO THE LOWEST COMMON DENOMINATOR THOSE BELOW 4 1/2 FEET TALL AND UNDER 10 YEARS OF AGE ANY ADULT WHO CARES ABOUT THE FUTURE OF AMERICA MIGHT BE TEMPTED TO BET AGAINST THIS STOCK IN THE HOPE THAT THE COMPANY AND ITS SHARE PRICE WILL COLLAPSE ON THE OTHER HAND ANYBODY WHO WANTS TO MAKE MONEY SHOULD BUY THE STOCK A FEW BARGAINHUNTING MONEY MANAGERS BELIEVE HOW COME PARENTS MAY BE APPALLED BY THE CLAMOR OF SHOWBIZ'S RESTAURANTS INVESTORS MAY CURRENTLY HATE THE STOCK BUT THE FACT IS KIDS LOVE CHUCK E CHEESE'S AND AS ANY PARENT KNOWS KIDS MAY NOT MAKE MONEY BUT THEY SURE HELP DECIDE HOW IT GETS SPENT CHUCK E CHEESE'S ISA SORT OF DINNER THEATER FOR THE PRETEEN SET EVEN PARENTS HARDENED BY DAILY DOSES OF BARNEY THE DINOSAUR WILL RECOIL AT THE FIVEBEAST MECHANICAL BAND BELTING OUT HITS FROM THEIR OWN YOUTH MEANWHILE THEIR CHILDREN TURN INTO DERVISHES EGGED ON BY A SENSORY OVERLOAD OF RIDES GAMES MUSIC VIDEO SCREENS AND AN OCCASIONAL APPEARANCE BY CHUCK E CHEESE HIMSELF A RODENT OF UNCERTAIN PARENTAGE KIDDIE ENTHUSIASM AND THE ADDITION OF NEW RESTAURANTS HAS GENERATED HEALTHY REVENUE GAINS FOR SHOWBIZ WHICH OWNS AND OPERATES 218 CHUCK E CHEESE'S AND FRANCHISES AN ADDITIONAL 109 THE COMPANY HAD SALES OF 272 MILLION LAST YEAR UP 75 FROM 1992 BUT SALES AT THE COMPANY'S OLDER RESTAURANTS DIDN'T FARE NEARLY SO WELL IN 1993 FALLING 53 FROM THE YEAREARLIER LEVEL THAT IN TURN HURT PROFITS SHOWBIZ EARNED 86 CENTS A SHARE IN 1993 DOWN FROM 111 IN 1992 THE EARNINGS SLOWDOWN HAS SENT SHOWBIZ'S STOCK PRICE REELING IT CLOSED YESTERDAY AT 13 1/4 ON THE NASDAQ STOCK MARKET 63 BELOW ITS ALLTIME HIGH OF 35 1/2 WHICH IT HIT EARLY LAST YEAR WE'VE BEEN SELLING IT SAYS GREGORY MELVIN MANAGER OF FEDERATED GROWTH TRUST WITH 450 MILLION IN ASSETS I SPENT ALL DAY MONDAY AT CHUCK E CHEESE'S WITH MY SIXYEAROLD DAUGHTER TRYING TO GET THE EARNINGS UP WE THINK THE EARNINGS TURNAROUND WILL HAPPEN BUT WE THINK IT'S A WAYS IN THE FUTURE ANALYSTS FAULT THE COMPANY'S MENU AND ITS ADVERTISING BUT THEY ALSO SAY SALES HAVE BEEN HURT BOTH BY COMPETITION AND BY CANNIBALIZATION AS NEW CHUCK E CHEESE'S RESTAURANTS STEAL CUSTOMERS AWAY FROM EXISTING RESTAURANTS THERE'S NO QUESTION THAT COMPETITION IS AN ISSUE SAYS DENNIS TELZROW AN ANALYST WITH PRINCIPAL/EPPLER GUERIN & TURNER IN DALLAS DISCOVERY ZONE AN OPERATOR OF INDOOR PLAYGROUNDS HAS INCREASED THE NUMBER OF ITS UNITS AT AN EXTREMELY RAPID RATE THAT HAS TO PUT SOME PRESSURE ON ANYBODY WHO'S APPEALING TO THE SAME CUSTOMER BASE MR TELZROW SAYS HE'S NEUTRAL ON SHOWBIZ'S STOCK CLEARLY THE PRICE OF THE STOCK REFLECTS THE COMPANY'S PROBLEMS HE SAYS IF YOU'RE PATIENT AND IT DOES TURN AROUND YOU'RE GOING TO MAKE SOME GOOD MONEY BUT NOT A LOT OF INSTITUTIONAL INVESTORS HAVE A LOT OF PATIENCE ANALYSTS ARE LOOKING FOR THE COMPANY TO EARN 89 CENTS A SHARE IN 1994 NOT FAR ABOVE LAST YEAR'S LEVEL BUT JOHN BRENNAN MANAGER OF MFS VALUE FUND WITH 154 MILLION IN ASSETS SAYS THE KEY TO SHOWBIZ'S VALUE IS THE COMPANY'S PLENTIFUL CASH FLOW IT'S VERY CHEAP ON A CASHFLOW BASIS MR BRENNAN SAYS IT HAS GOOD MANAGEMENT THEY'RE BUYING BACK STOCK I THINK THEY'LL BE ABLE TO TURN IT AROUND BUT WHILE WALL STREET WORRIES ABOUT PROFITABILITY LAST SUNDAY EMPLOYEES AT OUR LOCAL CHUCK E CHEESE'S WERE WORRYING ABOUT CROWD CONTROL BY THE TIME WE LEFT ADDLED PARENTS AND THEIR ANTSY CHILDREN WERE LINING UP TO GET IN MY 18MONTHOLD WAS SO UPSET AT LEAVING HE CRIED THAT WAS WHEN I DECIDED HE MIGHT NOT BE PRINCETON UNIVERSITY MATERIAL MY DAUGHTER MEANWHILE WANTS TO KNOW WHETHER CHUCK E CHEESE IS A MOUSE OR A RAT YOU'VE GOT A PRETTY SOPHISTICATED CHILD SAYS FEDERATED'S MR MELVIN IT'S A MOUSE BECAUSE RATS HAVE A BAD CONNOTATION MR BRENNAN OF MFS ISN'T SO SURE AFTER THE STOCK'S LONG DECLINE IT'S PROBABLY CLOSER TO A RAT THAN A MOUSE HE SAYS WHAT'S THE COMPANY LINE THERE ISN'T ONE MICHAEL MAGUSIAK SHOWBIZ'S CHIEF FINANCIAL OFFICER SUGGESTS IT'S A MATTER OF SOME DEBATE IT'S A MOUSE AT LEAST THAT'S WHAT I BELIEVE 9403310128 940331 WORLD STOCK INDEX CORRECTION NEW YORK A DATA ERROR INVOLVING NETHERLANDS STOCKS WAS CORRECTED IN THE DOW JONES WORLD STOCK INDEX RESULTING IN A RECALCULATION OF THE INDEX SERIES THE NEW INDEX NUMBERS APPEAR IN TODAY'S EDITION OF THE WALL STREET JOURNAL THE CHANGES AFFECT INDEXES FOR THE NETHERLANDS IN BOTH LOCAL CURRENCY AND US DOLLARS AND THE REGIONAL INDEX FOR EUROPE THE WORLD INDEX ITSELF WAS MINIMALLY AFFECTED THE WORLD INDEX CLOSED TUESDAY IN US DOLLAR TERMS AT 11347 RATHER THAN 11346 AS ORIGINALLY REPORTED 9403310127 940331 WORLD MARKETS LONDON FRANKFURT FOLLOW WALL STREET'S DROP TOKYO STOCKS CONTINUE TO SLIP ON YEN'S STRENGTH A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES TUMBLED 1 ON WEDNESDAY PUSHED BY A LATE DROP AMID SHARP EARLY LOSSES ON WALL STREET FRANKFURT PRICES ALSO SLUMPED REFLECTING DECLINES ON SEVERAL OTHER MARKETS TOKYO STOCKS FELL ON THE SHARP ADVANCE BY THE YEN WHICH IS HURTING EXPORTLINKED ISSUES LATE BUYING CUSHIONED THE SLIDE AS INVESTORS DECIDED THE CURRENCY'S SURGE WOULDN'T LAST WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11236 DOWN 111 REFLECTING LOWER MARKETS IN ALL REGIONS CASINO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 19303 UP 218 OR 11 WITH CASINO MUNICIPAL DE CANNES OF FRANCE POSTING AN 85 GAIN IN ITS LOCAL CURRENCY RESTAURANT STOCKS TRAILED AT 13288 DOWN 355 OR 26 WITH SHONEY'S OF THE US SLIDING 38 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 31 POINTS TO 30924 THE FT 30STOCK INDEX TUMBLED 246 POINTS OR 1 TO 24455 VOLUME WAS 7542 MILLION SHARES COMPARED WITH 6738 MILLION SHARES A DAY EARLIER NERVOUSNESS ABOUT DECLINES ON WALL STREET AND THE BRITISH BOND MARKET WAS COMPOUNDED BY BRITISH POLITICAL TURMOIL FOLLOWING A COMPROMISE ON VOTING RIGHTS IN THE EUROPEAN UNION PRIME MINISTER JOHN MAJOR HAS COME UNDER FIRE FROM WITHIN HIS CONSERVATIVE PARTY FOR DROPPING HIS RESISTANCE TO EXPANDING THE NUMBER OF VOTES NEEDED TO BLOCK EU LEGISLATION INVESTORS ALSO WORRIED ABOUT US EMPLOYMENT DATA WHICH WILL BE RELEASED TOMORROW WHEN THE LONDON MARKET IS CLOSED FOR THE EASTER HOLIDAY STRONG JOBS GROWTH COULD LEAD TO A RISE IN US INTEREST RATES IN FRANKFURT THE DAX 30STOCK INDEX FELL 2082 POINTS TO 214753 IN SUBDUED TRADING AHEAD OF THE EASTER HOLIDAY THE GERMAN CENTRAL BANK EASED A KEY INTEREST RATE AS EXPECTED BUT THE NEWS FAILED TO CHEER INVESTORS WHO INSTEAD FOCUSED ON LOSSES IN OTHER MAJOR STOCK MARKETS IN PARIS EQUITIES SLUMPED 19 AMID JITTERS OVER WALL STREET'S STEEP DECLINE TUESDAY AND MOUNTING CONCERN OVER FRANCE'S SOCIAL UNREST SURROUNDING A YOUTH WAGE LAW WHICH WAS WITHDRAWN THIS WEEK IN AMSTERDAM PRICES SLIPPED SLIGHTLY IN SKITTISH TRADING AHEAD OF THE FOURDAY EASTER WEEKEND IN MILAN SHARES INCLUDING THOSE TRADED ELECTRONICALLY JUMPED 26 IN HEAVY TRADING MORE THAN RECOUPING TUESDAY'S LOSSES INVESTORS OVERCAME PREVIOUS SKEPTICISM AND EXPRESSED HOPES THAT THE RECENTLY ELECTED FREEDOM ALLIANCE WOULD FORM AN ECONOMICALLY LIBERALMINDED GOVERNMENT IN THE COMING WEEKS IN MADRID PRICES SANK 15 TO A LOW FOR 1994 DRAGGED DOWN BY TUESDAY'S DROP ON THE NEW YORK STOCK EXCHANGE AND ITS CONTINUING SHARP DECLINE IN EARLY TRADING ON WEDNESDAY IN STOCKHOLM EQUITIES SLIPPED FOR THE 11TH CONSECUTIVE SESSION DESPITE A LATE RALLY ON A DECLINE IN SWEDISH INTEREST RATES IN ZURICH STOCKS FELL IN CHOPPY TRADING BUYING BY INVESTORS EAGER TO SQUARE THEIR POSITIONS AHEAD OF THE EASTER HOLIDAY PARTIALLY OFFSET AN EARLY SELLOFF IN BRUSSELS EQUITIES TUMBLED 12 IN LINE WITH DECLINES ELSEWHERE IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 23205 POINTS ON TUESDAY SLIPPED 14983 TO 1955991 IN TRADING THURSDAY IN TOKYO THE NIKKEI INDEX FELL 21904 POINTS TO CLOSE THE MORNING SESSION AT 1934087 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 330 MILLION SHARES COMPARED WITH 2549 MILLION SHARES A DAY EARLIER LOSERS TROUNCED GAINERS 792241 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION SHARES WHICH TUMBLED 1633 POINTS TUESDAY SANK 829 TO 158822 RENEWED CONCERNS ABOUT USJAPAN TRADE TENSIONS PROPELLED THE YEN SPURRING AN EARLY SELLOFF OF EXPORTORIENTED SHARES AND INDEXLINKED ARBITRAGE SALES OF EQUITIES THE YEN'S STRENGTH REDUCES EXPORTERS' PROFITS FROM OVERSEAS SALES AND COULD DAMP AN ECONOMIC RECOVERY IN JAPAN HOWEVER INVESTORS WERE INCREASINGLY DOUBTFUL THAT THE DOLLAR WOULD WEAKEN FURTHER AGAINST THE JAPANESE CURRENCY BECAUSE OF FUNDAMENTAL ECONOMIC DIFFERENCES BETWEEN THE US AND JAPAN UNDER THE WEIGHT OF THE YEN'S STRENGTH AND A STEEP FALL TUESDAY IN US SHARES THE NIKKEI PLUNGED MORE THAN 300 POINTS IN THE SESSION'S FIRST 15 MINUTES TRADING THEN QUIETED STAYING IN A NARROW RANGE UNTIL INSTITUTIONAL AND FOREIGN INVESTORS BEGAN LATE BARGAINHUNTING IN SYDNEY SHARES FELL FOR THE FIFTH CONSECUTIVE SESSION THE MARKET RECOVERED SOMEWHAT FROM A SHARP OPENING DIVE SPURRED BY TUESDAY'S WEAKNESS ON WALL STREET IN HONG KONG EQUITIES PLUNGED 26 IN SYMPATHY WITH TUESDAY'S DROP IN NEW YORK IN SINGAPORE STOCKS SURGED 16 IN THIN DEALINGS ON SPORADIC BUYING BY RETAIL AND INSTITUTIONAL INVESTORS IN KUALA LUMPUR PRICES CLOSED NARROWLY MIXED AS PROFITTAKING TRIMMED EARLY GAINS IN SEOUL PRICES TUMBLED 11 ON SPECULATIVE SELLING OF BLUE CHIPS HOWEVER INVESTORS CONTINUED SELECTIVE BUYING OF SMALL ISSUES IN TAIPEI SHARES EASED ON THE YEAR'S SECONDLOWEST VOLUME INVESTORS STAYED ON THE SIDELINES AFTER TUESDAY'S HOLIDAY IN MANILA SHARES ROSE FOR THE FOURTH STRAIGHT DAY IN BUSY TRADING INVESTORS WERE ENCOURAGED BY DEVELOPMENTS IN THE PHILIPPINES' CONTINUING NEGOTIATIONS WITH THE INTERNATIONAL MONETARY FUND ON ECONOMIC AND FINANCIAL POLICIES IN WELLINGTON EQUITIES FELL 19 LATE BUYING FAILED TO OFFSET DECLINES DUE TO WORRIES ABOUT WEAKNESS IN THE US STOCK MARKET AND INCREASES IN NEW ZEALAND INTEREST RATES IN MEXICO CITY STOCKS FELL 19 IN VERY LIGHT PREHOLIDAY TRADING AS INVESTORS CONSIDERED THE PROBLEMS NEW MEXICAN PRESIDENTIAL CANDIDATE ERNESTO ZEDILLO FACES IN TRYING TO UNIFY THE WARRING FACTIONS WITHIN THE RULING PARTY TUESDAY'S HUGE LEAP IN MEXICAN INTEREST RATES ALSO DAMPED SENTIMENT AMONG CORPORATE DEVELOPMENTS IN LONDON RANK ORGANISATION FELL SIX PENCE OR 15 TO 395 PENCE 586 THE DIVERSIFIED LEISURE GROUP SAID IT EXPECTS TO TAKE AN EXCEPTIONAL PROVISION OF 75 MILLION ON ITS FIRSTHALF RESULTS TO CLOSE ITS US VIDEO AND AUDIO DISTRIBUTION SUBSIDIARY IN FRANKFURT METALLGESELLSCHAFT ROSE 76 MARKS OR 4 TO 19650 MARKS 11719 THE INDUSTRIAL GIANT REPORTED THAT ITS OPERATING LOSS EXCLUDING RESULTS FROM ITS TROUBLED MG CORP US SUBSIDIARY NARROWED TO 50 MILLION MARKS 298 MILLION IN THE FIRST FIVE MONTHS OF THE FISCAL YEAR THAT BEGAN OCT 1 FROM 344 MILLION MARKS A YEAR EARLIER HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9403310126 940331 BUSINESS BRIEF ITT CORP CONSIDERS PLAN TO REORGANIZE INTO THREE GROUPS NEW YORK ITT CORP IS CONTEMPLATING REORGANIZING THE COMPANY INTO THREE SEPARATE OPERATING BUSINESSES IN ITT'S ANNUAL REPORT RAND V ARASKOG CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER TELLS SHAREHOLDERS THE COMPANY IS THINKING OF GROUPING ITS VARIOUS BUSINESSES INTO THREE MORE FORMAL OPERATING CLUSTERS MANUFACTURED PRODUCTS FINANCIAL SERVICES AND A THIRD UNIT CENTERED ON THE SHERATON HOTELS GROUP SOME ANALYSTS SAID THE CHANGE COULD POSITION THE COMPANY FOR POSSIBLE SPINOFFS OR OFFERINGS OF THE DIVISIONS ITT RECENTLY SPUN OFF ITS RAYONIER INC FOREST PRODUCTS UNIT TO SHAREHOLDERS AND ANNOUNCED PLANS TO OFFER PART OF ITS ITT EDUCATIONAL SERVICES UNIT TO THE PUBLIC AN ITT SPOKESMAN HOWEVER SAID SPINOFFS OR PUBLIC OFFERINGS WERE NOT THE COMPANY'S RATIONALE OR INTENTION FOR PURSUING A THREEDIVISION STRATEGY UNDER THE PROPOSED SPLIT ITT HARTFORD AND ITT FINANCIAL INC WOULD FORM A FINANCIALSERVICES DIVISION ITT AUTOMOTIVE ITT FLUID TECHNOLOGY AND ITT DEFENSE & ELECTRONICS WOULD FORM A TECHNOLOGY AND MANUFACTURING COMPANY AND ITT SHERATON ITT COMMUNICATIONS & INFORMATION SERVICES AND ITT EDUCATION SERVICES GROUP WOULD FORM A THIRD CORPORATE ENTITY SEPARATELY ITT SAID IT COMPLETED THE SALE OF ITS ITT POWERSYSTEMS UNIT TO CHARTER POWER SYSTEMS INC PLYMOUTH MASS TERMS WEREN'T DISCLOSED POWERSYSTEMS A UNIT OF ITT DEFENSE & ELECTRONICS MAKES AND SELLS CUSTOM POWER SUPPLIES FOR THE COMPUTER OFFICE EQUIPMENT AND TELECOMMUNICATIONS MARKETS 9403310125 940331 WHO'S NEWS ZAM'S INC ZAM'S INC ST LOUIS DENNIS H BARRON 53 YEARS OLD FORMERLY PRESIDENT OF BARRON VENTURES WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS OPERATOR OF PARTY SUPERSTORES HE SUCCEEDS JOEL RICE WHO RESIGNED IN DECEMBER TO PURSUE OTHER INTERESTS 9403310124 940331 INTERNATIONAL LITTLE LUXEMBOURG SEES A BIG PROBLEM LACK OF JOBS CLASH OF CULTURES SPUR CRY TO CURB IMMIGRATION BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL LUXEMBOURG JOAQUIM PINTO DE SOLSA RUNS A PORTUGUESE CONSTRUCTION COMPANY HE EATS AT PORTUGUESE RESTAURANTS DRINKS IN A PORTUGUESE CAFE SHOPS IN A PORTUGUESE SUPERMARKET AND WATCHES SOCCER GAMES BETWEEN PORTUGUESE TEAMS NONE OF THIS IS UNUSUAL FOR MR SOLSA A CITIZEN OF PORTUGAL WHAT'S ODD IS THAT HE DOES ALL THIS IN THE GRAND DUCHY OF LUXEMBOURG I LIKE LUXEMBOURG BUT I HAVE MY OWN WAY OF LIVING HE SAYS OVER STEAK POTATOES AND PORTUGUESE WINE MOST OF THE PORTUGUESE LIVE ONLY INSIDE THEIR COMMUNITY WITH FOREIGNERS HERE MAKING UP 30 OF THE TOTAL POPULATION OF 400000 AND MORE THAN HALF THE WORK FORCE NATIVE LUXEMBOURGERS SEE THEIR TINY COUNTRY AS THE FUTURE OF A EUROPE WITHOUT BORDERS AND THEY AREN'T SURE THEY LIKE WHAT THEY SEE AFTER EMBRACING FOREIGNERS FOR DECADES AS A WAY TO BUILD WEALTH AT A TIME WHEN LUXEMBOURG DIDN'T HAVE ENOUGH INDIGENOUS WORKERS MANY LUXEMBOURGERS NOW SEE IMMIGRANTS AS A THREAT MOST IMMIGRANTS HAVEN'T DROPPED THEIR FOREIGN CITIZENSHIP OR ASSIMILATED AND SOME TAKE THEIR INCOME BACK TO THEIR HOMELAND YET BECAUSE OF EUROPEAN UNION LAW FOREIGNERS WON PERMISSION TO VOTE FOR LUXEMBOURG'S REPRESENTATIVES TO THE EUROPEAN PARLIAMENT THIS JUNE NEXT YEAR LUXEMBOURG WILL BE FORCED TO CHANGE ITS CONSTITUTION TO LET FOREIGNERS VOTE IN LOCAL ELECTIONS BECAUSE OF THE EUROPEAN UNION'S GUARANTEE OF FREE MOVEMENT BETWEEN MEMBER COUNTRIES LUXEMBOURG IS POWERLESS TO STOP THE IMMIGRANTS 91 OF WHOM ARE FROM OTHER EU COUNTRIES THE SITUATION HAS PROVOKED A RARE SHOW OF PATRIOTIC LUXEMBOURGFORLUXEMBOURGERS SENTIMENT HERE WITH THOUSANDS OF NEW IMMIGRANTS ARRIVING EACH YEAR AND NEGATIVE POPULATION GROWTH AMONG LUXEMBOURGERS SOME FEAR LUXEMBOURG CITIZENS WILL BE A MINORITY IN THEIR COUNTRY WITHIN 20 YEARS I WANT TO GIVE THE LUXEMBOURGISH NATIONALITY TO MY CHILDREN SAYS ALEXANDER ROTH LEADER OF THE GROUP FOR LUXEMBOURGISH SOVEREIGNTY WHICH IS CAMPAIGNING AGAINST VOTING RIGHTS FOR FOREIGNERS A NATION CAN'T BE PART OF UNITED EUROPE IF THIS MEANS GIVING UP ITSELF CONCERNS HAVE BEEN COMPOUNDED BECAUSE LUXEMBOURG IS EXPERIENCING ITS FIRST SERIOUS BOUT WITH UNEMPLOYMENT IT'S AT 28 NOW AND COULD GROW TO 5 ECONOMISTS SAY IN THIS WEALTHY COUNTRY WHERE 1 UNEMPLOYMENT IS THE NORM WE ARE IN A CRISIS SAYS JEANMARIE MOUSEL DIRECTOR OF EMPLOYMENT ADMINISTRATION ALTHOUGH LUXEMBOURG HAS BY FAR THE HIGHEST PROPORTION OF FOREIGNERS IN THE EU ITS DILEMMA WILL PROBABLY REACH OTHER EUROPEAN COUNTRIES AS NATIONAL BOUNDARIES DISAPPEAR AN EU CITIZEN IS AS FREE TO SWITCH NATIONS AS A NEW YORKER IS TO MOVE TO FLORIDA BUT WITH LANGUAGE AND CULTURAL BARRIERS EUROPEAN COUNTRIES MAY FIND ASSIMILATION DAUNTING IF WE WANT TO CARRY ON WITH EUROPEAN INTEGRATION WE HAVE TO FIND A WAY TO GET THESE COMMUNITIES TOGETHER AND MAKE THEM MINGLE SAYS JEANPAUL HOFFMANN EDITOR OF D'LETZEBURGER LAND A LUXEMBOURG WEEKLY LUXEMBOURG'S FOREIGN PRESENCE CAN BE SEEN AT THE CAFE ODEON ON LUXEMBOURG CITY'S NORTH SIDE THE LUXEMBOURGISH CAFE BECAME A PORTUGUESE CAFE A FEW YEARS AGO AND NOW BOASTS PORTUGUESE NEWSPAPERS TELEVISION RADIO AND CASSETTES THE PORTUGUESE LUNCHHOUR CUSTOMERS ON A RECENT DAY SAY THERE'S LITTLE NEED TO BECOME LUXEMBOURGERS MR SOLSA ONE OF THE PATRONS CAME TO LUXEMBOURG IN 1971 BUT RETURNED TO PORTUGAL A FEW YEARS AGO TO FORM HIS OWN BUSINESS NOW HE COMES WITH PORTUGUESE WORKERS FOR A FEW WEEKS AT A TIME WHEN THERE'S WORK IN LUXEMBOURG HE HAS NO INTENTION OF BECOMING A CITIZEN AND DOESN'T SPEAK LUXEMBOURGISH NEITHER DOES ARMINDO ANTUNES ARANJO WORKING ON A ROAD CONSTRUCTION CREW OUTSIDE THE CAFE ALL THE WORKERS ARE PORTUGUESE EXCEPT FOR ONE POLE I DEFINITELY WON'T STAY FOR GOOD SAYS MR ARANJO A YOUNG MAN WHO CAME HERE WITH HIS FAMILY THREE YEARS AGO HE DOESN'T SPEAK LUXEMBOURGISH OR FRENCH OF THE LUXEMBOURGERS HE SAYS I DON'T MEET THEM AND I DON'T DEAL WITH THEM THIS IS THE PORTUGUESE NOTION OF SAUDADE DEFINED HERE AS A RELUCTANCE TO ASSIMILATE IN HOPES OF RETURNING TO THE HOMELAND SAUDADE WORRIES LUXEMBOURGERS THE ADR A POPULIST POLITICAL PARTY HERE USED THE LACK OF ASSIMILATION WHEN IT OPPOSED VOTING RIGHTS FOR FOREIGNERS WE DON'T WANT TO GIVE VOTING RIGHTS TO SOMEBODY WHO DOESN'T INTEND TO STAY IN LUXEMBOURG SAYS JACQUESYVES HENCKES A LAWYER RUNNING FOR PARLIAMENT THE ADR ALSO WANTS LUXEMBOURG TO RECONSIDER ITS POLICY OF ENCOURAGING FOREIGN WORKERS WHEN A NEW COMPANY SETS UP IN LUXEMBOURG 99 OF THE JOBS GO TO FOREIGNERS MR HENCKES SAYS IT DOESN'T PROFIT OUR POPULATION OF COURSE LUXEMBOURG NEEDS A STEADY SUPPLY OF FOREIGN WORKERS TO KEEP ITS ECONOMY RUNNING AND WHILE UNEMPLOYMENT IS RISING THE CAUSE SEEMS LARGELY TO BE RECESSION AND RETRENCHMENT THERE'S LITTLE EVIDENCE THAT FOREIGNERS ARE TO BLAME FOR TAKING JOBS STILL TENSIONS GROW WHEN JOAO DE JESUS VAZ MOVED HERE FROM PORTUGAL 25 YEARS AGO WE WERE BETTER ACCEPTED HE SAYS NOW WITH UNEMPLOYMENT THERE IS MORE DISTANCE MORE RETICENCE THE RETICENCE APPEARS MOSTLY OVER THE QUESTION OF VOTING RIGHTS LUXEMBOURG'S GOVERNMENT FEARING A POPULAR BACKLASH APPEALED TO THE EU FOR A FIVEYEAR RESIDENCY REQUIREMENT FOR FOREIGN VOTERS AND A 10YEAR REQUIREMENT FOR FOREIGN CANDIDATES IT ALSO WON PERMISSION TO BAN FOREIGNER POLITICAL PARTIES AND TO KEEP FOREIGNERS FROM TOP OFFICES THE GOVERNMENT GAVE FOREIGNERS ONLY FOUR WEEKS TO REGISTER FOR THE VOTE THIS YEAR AND REQUIRED EXTENSIVE DOCUMENTATION OF THEIR RESIDENCY THE RESULT ONLY 6700 FOREIGNERS REGISTERED THAT'S ABOUT 3 OF THE VOTING POPULATION THAT CALMED SOME NATIVES' FEARS BY MAKING THE ELECTION OF A FOREIGNER TO THE EUROPEAN PARLIAMENT IN JUNE UNLIKELY BUT IT ANGERED MANY IMMIGRANTS ASTI LUXEMBOURG'S UMBRELLA IMMIGRANT GROUP ACCUSED THE GOVERNMENT OF WANTING TO DEFEND LUXEMBOURG AGAINST DEMOCRACY SAYS SERGE KOLLWELTER THE GROUP'S CHAIRMAN ASTI ALSO POINTS OUT THAT FOREIGNERS STILL CAN'T HOLD MANY CIVILSERVICE JOBS FRANCIS DELAPORTE THE GOVERNMENT'S IMMIGRATION COMMISSIONER SAYS LUXEMBOURG DID THE BEST IT COULD HE HOPES THE IMMIGRATION PROBLEM WILL SOLVE ITSELF WITH FEWER JOBS FEWER IMMIGRANTS SHOULD BE DRAWN TO THIS COUNTRY EVEN IF NOT HE ADDS THERE IS NO REAL CHOICE ABOUT IT BECAUSE OF THE MAASTRICHT AND SCHENGEN TREATIES LUXEMBOURG REMOVED THE LAST OF ITS BORDER GUARDS IN 1992 AND 1993 SURRENDERING ALL CONTROL OF ITS BORDERS WITH NO CONTROL ON ITS FRONTIERS LUXEMBOURG HAS TWO ALTERNATIVES IT CAN ENCOURAGE THE FULL INTEGRATION OF ITS FOREIGNERS OR IT CAN KEEP ITS FOREIGN COMMUNITY SEPARATE RISKING A CLASHING DIVIDED NATION EITHER WAY SAYS DIOGO QUINTELA A PORTUGUESE ENGINEER WHO HEADS THE PORTUGUESE SOCIALIST PARTY IN THE BENELUX COUNTRIES IT WILL BE A GREAT MODIFICATION OF THEIR SOCIETY ADDS MR QUINTELA IT ISN'T POSSIBLE TO HAVE 30 OF THE POPULATION FROM ABROAD WITH A DIFFERENT LIFESTYLE AND REMAIN A STABLE COMMUNITY 9403310123 940331 WHO'S NEWS ENERGY BIOSYSTEMS CORP ENERGY BIOSYSTEMS CORP THE WOODLANDS TEXAS THIS BIOTECHNOLOGY COMPANY ELECTED TWO NEW BOARD MEMBERS AND SAID A FORMER BOARD MEMBER RESIGNED BRINGING THE TOTAL NUMBER OF DIRECTORS TO NINE NAMED TO THE BOARD WERE RAMON LOPEZ 60 YEARS OLD AND DANIEL J MONTICELLO 38 THE COMPANY'S VICE PRESIDENT RESEARCH AND DEVELOPMENT MR LOPEZ WAS FORMERLY VICE PRESIDENT SAFETY ENVIRONMENT AND TECHNOLOGY FOR A UNIT OF THE ROYAL DUTCH/SHELL GROUP THE COMPANY SAID WILLIAM M HANEY III RESIGNED FROM THE BOARD TO FOCUS HIS ATTENTION ON MOLTEN METAL TECHNOLOGY WHERE HE IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR HANEY WILL REMAIN AN ADVISER TO THE BOARD AND A CONSULTANT TO THE COMPANY 9403310122 940331 SALOMON TWO FUNDS SET TO SETTLE CLAIMS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SALOMON BROTHERS INC AND TWO POWERFUL INVESTMENT FUNDS HAVE AGREED TO PAY A TOTAL OF 100 MILLION TO SETTLE CLAIMS ARISING OUT OF ALLEGED MANIPULATION OF SEVERAL BIG TREASURY AUCTIONS THE SALOMON INC UNIT IN AN AGREEMENT IN PRINCIPLE WITH A FEDERAL COURT HERE SAID IT WILL PAY 66 MILLION TO SETTLE A CLASSACTION SUIT FILED BY BUYERS OF TREASURY SECURITIES FOLLOWING THE FIRM'S 1991 TREASURYAUCTION BIDDING SCANDAL THE SETTLEMENT WHICH NEEDS APPROVAL BY A FEDERAL JUDGE WOULD ESSENTIALLY CLOSE THE LEGAL DOCKET STEMMING FROM THE WORST SCANDAL IN SALOMON'S 84YEAR HISTORY SALOMON SAID MORE THAN 40 MILLION OF THE SETTLEMENT AMOUNT IS COVERED BY A RESTITUTION FUND SET UP BY THE FIRM IN MAY 1992 AS PART OF THE PROPOSED ACCORD STEINHARDT MANAGEMENT INC AND CAXTON CORP HAVE AGREED TO PAY INVESTORS A TOTAL OF ABOUT 34 MILLION STEINHARDT WILL PAY 22 MILLION WITH MOST OF THE REMAINDER TO BE PAID BY CAXTON LAWYERS FAMILIAR WITH THE CASE SAID SALOMON STEINHARDT AND CAXTON AGREED TO THE SETTLEMENT WITHOUT ADMITTING ANY VIOLATION OF LAW THE CLASSACTION CASE WHICH CONSOLIDATED 10 SEPARATE ACTIONS WAS FILED ON BEHALF OF HUNDREDS OF THOUSANDS OF TREASURYMARKET BUYERS WHO SAY THEY WERE HARMED BY ALLEGED MANIPULATION IN THE GOVERNMENTBOND MARKET THE TREASURYAUCTION SCANDAL ERUPTED IN AUGUST 1991 AFTER SALOMON ADMITTED FALSIFYING CUSTOMER ORDERS AND BIDDING BEYOND GOVERNMENT LIMITS IN A SERIES OF SALES OF GOVERNMENT NOTES AND BONDS THE SCANDAL RESULTED IN THE FORCED DEPARTURES OF SALOMON'S SENIOR MANAGEMENT INCLUDING CHAIRMAN JOHN GUTFREUND AND PRESIDENT THOMAS STRAUSS STEINHARDT AND CAXTON WERE ACCUSED BY INVESTORS OF COLLUDING WITH SALOMON TO MANIPULATE THE MAY 1991 AUCTION OF TREASURY NOTES LAST YEAR SALOMON AGREED TO PAY 67 MILLION TO SETTLE CLASSACTION CASES FILED BY HOLDERS OF SALOMON STOCK AND BONDS FOLLOWING THE BIDDING SCANDAL MOST OF THAT AMOUNT 545 MILLION ALSO IS COVERED BY THE RESTITUTION FUND A FEDERAL COURT HERE NOW IS CONSIDERING WHETHER TO APPROVE THAT SETTLEMENT SALOMON SAID YESTERDAY IN 1992 SALOMON AGREED TO PAY 290 MILLION TO SETTLE FEDERAL CIVIL CHARGES BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION WITH YESTERDAY'S PROPOSED ACCORD SALOMON BELIEVES THAT IT HAS RESOLVED THE MOST SIGNIFICANT TREASURY AUCTIONRELATED MATTERS THE FIRM SAID IT ISN'T CLEAR HOW THE PROPOSED SETTLEMENT WILL BE DOLED OUT TO INVESTORS WE BELIEVE THAT THE RECOVERY TO MEMBERS OF THE CLASS IS VERY SUBSTANTIAL AND DEMONSTRATES THE IMPORTANCE OF CLASS ACTIONS IN PROTECTING INVESTORS IN THE SECURITIES MARKETS STANLEY M GROSSMAN CLASS COUNSEL IN THE CASE SAID IN A STATEMENT STEINHARDT SAID IN A STATEMENT WE'RE PARTICIPATING IN THE SETTLEMENT IN ORDER TO REDUCE THE CONTINUED BURDEN EXPENSE AND DISTRACTION OF PROTRACTED LITIGATION THE FIRM CONTINUES TO DENY THAT IT ENGAGED IN ANY WRONGDOING LAWYERS FOR CAXTON COULDN'T IMMEDIATELY BE REACHED FOR COMMENT TWO OTHER INVESTMENT FUNDS AND DEFENDANTS IN THE CASE TIGER MANAGEMENT CO AND SOROS FUND MANAGEMENT WERE DROPPED FROM THE ACTION LAWYERS FAMILIAR WITH THE MATTER SAID A HEARING ON THE PROPOSED SETTLEMENT BEFORE US DISTRICT JUDGE ROBERT PATTERSON HASN'T YET BEEN SET INVESTORS WHO OPT OUT OF THE SETTLEMENT WILL BE BARRED FROM BRINGING ANY ADDITIONAL SIMILAR CLAIMS AGAINST SALOMON STEINHARDT OR CAXTON 9403310121 940331 ECONOMY STATECHARTERED BANKS IN NEW YORK ARE GIVEN THE RIGHT TO SELL ANNUITIES BY G BRUCE KNECHT AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL IN AN IMPORTANT VICTORY FOR BANKS NEW YORK'S HIGHEST COURT GAVE STATECHARTERED INSTITUTIONS THE RIGHT TO SELL ANNUITIES ONE OF THE INSURANCE INDUSTRY'S FASTESTGROWING PRODUCTS THE BATTLE OVER WHETHER BANKS CAN OFFER ANNUITIES AS WELL AS MORE TRADITIONAL TYPES OF INSURANCE IS BEING FOUGHT IN SEVERAL COURTS AROUND THE COUNTRY AND BANKING INDUSTRY LEADERS CLAIM THE 60 DECISION BY THE NEW YORK COURT OF APPEALS WILL ENCOURAGE OTHER STATES TO ALLOW THE PRACTICE THE DECISION ALSO MAY MAKE THE US SUPREME COURT MORE LIKELY TO TAKE UP THE ISSUE OF WHETHER FEDERALLY CHARTERED BANKS SHOULD HAVE THE RIGHT TO SELL ANNUITIES THIS IS A VERY SIGNIFICANT DECISION FOR NEW YORK'S BANKING INDUSTRY AND IT MAY HAVE NATIONAL RAMIFICATIONS SAID MICHAEL P SMITH THE EXECUTIVE VICE PRESIDENT OF THE NEW YORK BANKERS ASSOCIATION A PARTY IN THE STATE CASE ADDED DAVID RODERER A BANKING REGULATION EXPERT WITH WINSTON & STRAWN A WASHINGTON LAW FIRM IF NEW YORK WILL ALLOW BANKS TO SELL ANNUITIES MANY OTHER STATES WILL DO THE SAME NEW YORK INSURANCE GROUPS WHICH PROTESTED THE ENCROACHMENT OF BANKS ON THEIR TURF DOWNPLAYED THE EXTENT TO WHICH YESTERDAY'S DECISION WOULD AFFECT ACTIVITY IN OTHER STATES BUT THEY ARE WORRIED ABOUT THE NEARTERM EFFECTS IN NEW YORK THE RULING OPENS UP THE WHOLE SITUATION OF BANKS SELLING OTHER FORMS OF INSURANCE SAID MARK YAVORNITZKI EXECUTIVE VICE PRESIDENT OF THE NEW YORK STATE ASSOCIATION OF LIFE UNDERWRITERS WHO SAID BANKS WOULD UNFAIRLY TAKE BUSINESS AWAY FROM THE INSURANCE INDUSTRY INSURANCE AGENTS MAY BE HURT EVEN MORE THAN INSURERS BECAUSE BANKS WOULD STILL BE BARRED FROM UNDERWRITING INSURANCE PRODUCTS IT WILL GREATLY IMPACT THE ABILITY OF THE AGENTS TO SELL ANNUITIES AND THE AGENTS' PROFITABILITY SAID JEFF MYERS A SPOKESMAN FOR THE INDEPENDENT INSURANCE AGENTS OF AMERICA ANNUITIES A 90BILLIONAYEAR BUSINESS ARE AN INCREASINGLY POPULAR INVESTMENT ALTERNATIVE BECAUSE THEY OFFER A TAXSHELTERED MEANS OF RETIREMENT SAVINGS GENERALLY ANNUITIES OFFER A STEADY STREAM OF PAYMENTS IN RETURN FOR AN UPFRONT LUMPSUM AMOUNT BANKS MEANWHILE ARE SCRAMBLING TO INCREASE THE VARIETY OF FINANCIAL AND INSURANCE PRODUCTS THEY OFFER AS CONSUMERS FLEE LOWYIELDING CERTIFICATES OF DEPOSITS FOR INVESTMENTS OFFERED ELSEWHERE MOREOVER ANNUITY SALES PAY BIG COMMISSIONS AND OFFER BANKS A MEANS OF EXPANDING THEIR RELATIONSHIPS WITH CLIENTS TO MORE THAN JUST BANK ACCOUNTS THE OFFICE OF THE COMPTROLLER OF THE CURRENCY HAS AUTHORIZED NATIONAL BANKS TO SELL ANNUITIES THROUGHOUT THE COUNTRY BUT THE RIGHTS OF BANKS REMAINS MURKY BECAUSE OF LEGAL CHALLENGES AT BOTH AT THE STATE AND FEDERAL LEVEL THE INSURANCE INDUSTRY ESTIMATES THAT AT LEAST HALF THE STATES RESTRICT THE SALES OF INSURANCE BY BANKS MR SMITH ESTIMATES THAT HALF OF THE NEW YORK'S 98 STATECHARTERED INSTITUTIONS ALREADY SELL ANNUITIES IN THEIR BRANCHES THROUGH THIRDPARTIES WHO SHARE THEIR COMMISSIONS WITH THE BANKS HOWEVER UNTIL YESTERDAY'S COURT DECISION THE BANKS WERE UNABLE TO SELL THE PRODUCTS DIRECTLY NOW THAT THE CLOUD HAS BEEN LIFTED I EXPECT THAT MANY OF THEM WILL TAKE THE EXTRA STEP AND BEGINNING SELLING THEM MR SMITH SAID THE INSURANCE INDUSTRY ARGUED THAT BANKS SHOULDN'T SELL INSURANCE PRODUCTS BECAUSE NEW YORK STATE LAW DOESN'T SPECIFY IT AS A BANKING ACTIVITY BUT THE COURT HELD THAT BANKING REGULATORS ACTED PROPERLY IN VIEW OF THE EVERCHANGING DEMANDS OF THE BANKING BUSINESS ARGUING THAT ANNUITIES ARE INVESTMENT PRODUCTS RATHER THAN INSURANCE PRODUCTS THE NEW YORK STATE RULING COMES AS A PARALLEL BATTLE IS TAKING PLACE ON THE FEDERAL LEVEL NATIONSBANK CORP BEGAN CHALLENGING RESTRICTIONS ON ANNUITY SALES IN 1989 BY ASKING THE COMPTROLLER'S OFFICE WHICH REGULATES NATIONALLY CHARTERED BANKS TO PERMIT IT TO SELL ANNUITIES THE COMPTROLLER AGREED BUT A FEDERAL APPEALS COURT THE FIFTH CIRCUIT COURT OF APPEALS IN NEW ORLEANS CAME DOWN ON THE SIDE OF THE INSURANCE INDUSTRY LAST YEAR NATIONSBANK IS ON THE VERGE OF APPEALING THE DECISION TO THE NEXT AND FINAL LEVEL THE US SUPREME COURT A MOVE THAT MUST BE TAKEN BY APRIL 13 ALTHOUGH THE CHARLOTTEBASED BANK IS ALMOST CERTAIN TO PETITION THE US SUPREME COURT IT ISN'T YET KNOWN WHETHER IT WILL BE JOINED BY THE COMPTROLLER WITHOUT THE COMPTROLLER'S PARTICIPATION WHICH MUST BE APPROVED BY THE SOLICITOR GENERAL EXPERTS SAY THE SUPREME COURT IS LESS LIKELY TO TAKE UP THE CASE MR RODERER WHO IS MEETING WITH THE SOLICITOR GENERAL ON MONDAY ON BEHALF OF THE BANKING INDUSTRY'S TRADE GROUPS SAID THE NEW YORK CASE DOES A LOT TO STRENGTHEN OUR CASE THAT THE SOLICITOR GENERAL SHOULD JOIN THE CASE SCOTT SINDER OF JENNER & BLOCK THE INSURANCE TRADE GROUPS' ATTORNEY SAID HIS RESEARCH SHOWS THAT 31 STATES GENERALLY RESTRICT THE SALE OF ALL FORMS OF INSURANCE INCLUDING ANNUITIES WITH SOME EXCEPTIONS AMONG STATES ALLOWING THE SALES IS DELAWARE WHERE SOME BANKHOLDING COMPANIES ARE HEADQUARTERED HE SAID THE NEW YORK BATTLE BEGAN IN 1991 WHEN THE STATE'S BANKING DEPARTMENT DECIDED TO LET BANKS SELL ANNUITIES A DECISION CHALLENGED BY NEW YORK STATE ASSOCIATION OF LIFE UNDERWRITERS 9403310120 940331 INTERNATIONAL WORLD WIRE COMPILED BY CATHERINE BOLGAR A US BID TO INTRODUCE THE ISSUE OF LABOR STANDARDS INTO THE WORLD TRADING SYSTEM HAS BOOMERANGED IN A CONFRONTATION ALONG NORTHSOUTH LINES SUCH A FIRM DIVIDE IS UNUSUAL IN THE GENERAL AGREEMENT ON TARIFFS AND TRADE BUT YESTERDAY DEVELOPING COUNTRIES UNITED TO SAY THAT THE US PROPOSAL WAS UNACCEPTABLE WHILE THE EUROPEAN UNION SUPPORTS THE US ON THE ISSUE OF BRINGING LABOR STANDARDS FOR DEBATE IN THE TRADE FORUM IT FINDS THE US TACTICS TOO STRONG AMONG THE PROPOSAL'S OPPONENTS INDIA SAYS THE LABOR STANDARDS ISSUE HAS CREATED PROBLEMS FOR GOVERNMENTS THAT ARE TRYING TO LIBERALIZE THEIR ECONOMIES INDIA AND OTHER DEVELOPING COUNTRIES ALSO ARE CONCERNED THAT INDUSTRIAL COUNTRIES WANT TO PROTECT THEIR STANDARDS OF LIVING AND SOCIAL SECURITY SYSTEMS BY FORCING THEIR HIGH COSTS ONTO DEVELOPING COUNTRIES WHOSE LOW WAGES MAKE THEIR EXPORTS COMPETITIVE NEW EUROPEAN UNION GUIDELINES ON THE USE OF BANK CARDS AND CHECKS DREW OPPOSITION FROM THE EUROPEAN BANKING FEDERATION WHICH CONTENDS THE MEASURES AREN'T NECESSARY THE EU COMMISSION SET THE GUIDELINES IN DECEMBER AND THREATENED TO MAKE BINDING RULES ON CROSSBORDER PAYMENTS UNLESS BANKS IMPROVE SERVICES BY MID1994 AN EU OFFICIAL SAID THE COMMISSION SOON WILL CARRY OUT ABOUT 1200 CROSSBORDER PAYMENTS TO SEE WHETHER THE BANKS HAVE IMPROVED THEIR SERVICES SINCE A SURVEY LAST YEAR THAT SURVEY FOUND THAT PAYMENTS ACROSS EU BORDERS TYPICALLY INVOLVED LONG DELAYS AND HIGH FEES HONG KONG IS CONSIDERING WAYS TO DEFLATE SWELLING PROPERTY PRICES AMONG THE PROPOSED MEASURES SUBSIDIES TO PRIVATE DEVELOPERS FOR STREETS AND OTHER PUBLIC WORKS TO SPEED UP HOUSING DEVELOPMENT AND ADDITIONAL CASH FOR THE GOVERNMENT'S LAND DEVELOPMENT CORPORATION TO PUT MORE COMMERCIAL AND RESIDENTIAL UNITS ON THE MARKET MEANWHILE THE HONG KONG OFFICEPROPERTY MARKET WILL REMAIN TIGHT FOR THE NEXT TWO YEARS ACCORDING TO A REPORT BY HANG SENG BANK PRICES IN THE CENTRAL DISTRICT HAVE REBOUNDED SO FAR THIS YEAR TO RECORD LEVELS OF MORE THAN 2589 A SQUARE FOOT FOR BUYERS AND 13 A SQUARE FOOT FOR RENTALS AFTER HITTING LOWS IN 1991 RUSSIA'S BEER LOVERS HAVE FOUND A NEW FRIEND TO PRESS THEIR CAUSE IN PARLIAMENT THE PARTY OF BEER LOVERS WHICH WANTS PEOPLE TO GIVE UP VODKA FOR BEER GAINED THE SUPPORT OF NATIONALITIES MINISTER SERGEI SHAKHRAI WHO AGREED TO SUPPORT THE PARTY IN THE STATE DUMA THE PARTY'S SUPPORTERS CONTEND THAT BEER DRINKING A TRADITION THAT WAS ERODED BY SOVIET RULE CONTRIBUTES TO CONVIVIAL BEHAVIOR FIVE BRITISH AIRLINES FILED A COMPLAINT WITH THE EUROPEAN UNION COMMISSION OVER THE RELATIONSHIP BETWEEN BRITISH AIRWAYS AND THE GALILEO COMPUTER RESERVATIONS SYSTEM AIR UK BRITISH MIDLAND JERSEY EUROPEAN AIRWAYS LOGANAIR AND MANX AIRWAYS QUESTION WHETHER THE FEES CHARGED TO AIRLINES REFLECT THE COST OF SERVICES PROVIDED THE AIRLINES CONTEND THAT GALILEO'S DOMINANCE IT'S USED BY MORE THAN 80 OF BRITAIN'S AUTOMATED TRAVEL AGENCIES FREES IT FROM COMMERCIAL PRESSURES AND THAT BRITISH AIRWAYS' POSITION AS GALILEO'S SOLE NATIONAL DISTRIBUTOR IN BRITAIN GIVES IT AN UNFAIR ADVANTAGE VOX BECAME THE FIRST OF GERMANY'S CROP OF PRIVATE TELEVISION NETWORKS TO GO OUT OF BUSINESS THE CHANNEL MAJORITYOWNED BY GERMAN PUBLISHING GIANT BERTELSMANN AG WAS TO GO OFF THE AIR TODAY AFTER LOSING A REPORTED 378 MILLION SINCE STARTING UP IN JANUARY 1993 VOX WAS ONE OF THE LAST PRIVATE CHANNELS TO BEGIN BROADCASTING AFTER REFORMS IN THE MID1980S PERMITTED PRIVATE NETWORKS TO COMPETE WITH PUBLIC BROADCASTERS IT FEATURED UNUSUAL GRAPHICS FASTMOVING NEWS SHOWS AND SOPHISTICATED SEX TALK THE US AND RUSSIA SIGNED FOUR AGREEMENTS TO IMPROVE MARKET ACCESS AND BUSINESS COOPERATION THE PACTS SET UP NINE BUSINESS CENTERS AROUND RUSSIA FOR US COMPANIES LOOKING TO OPERATE THERE AND WILL SMOOTH THE REGULATORY PROCESS FOR IMPORT OF US MEDICAL EQUIPMENT IN ADDITION RUSSIA AGREED TO EXEMPT PREVIOUSLY NEGOTIATED DEALS FROM NEW IMPORT TARIFFS IMPOSED MARCH 15 AND TO REVIEW THE NEW LEVIES SEPARATELY A TOP RUSSIAN TAX OFFICIAL SAID THE COUNTRY'S TAX SYSTEM WILL BE SIMPLIFIED AND THE NUMBER OF LEVIES REDUCED BUT MAJOR CHANGES AREN'T POSSIBLE BECAUSE OF BUDGETARY NEEDS RUSSIANS FACE 20 SEPARATE FEDERAL TAXES ALONG WITH 21 REGIONAL ONES MOST OF THESE GENERATE ONLY A SMALL PART OF TOTAL REVENUES OF THE FEDERAL TAXES 93 OF REVENUE COMES FROM FIVE LEVIES THE PROFITS TAX THE VALUEADDED TAX INDIVIDUAL INCOME TAXES PAYMENTS FOR NATURAL RESOURCES AND EXCISE TAXES CHINA PLANS TO INVEST 1448 MILLION IN GOLD MINING THIS YEAR TO BOOST LAGGING PRODUCTION LEVELS A 50 INCREASE FROM 1992 SPENDING THE GOVERNMENT ALSO INTENDS TO TO TIGHTEN CONTROLS TO REDUCE THE AMOUNT OF GOLD SOLD ON THE BLACK MARKET BRAZIL'S PRESIDENT AGREED TO A ONETIME BONUS OF 11 OF ANNUAL PAY FOR CIVIL SERVANTS ENDING A DISPUTE THAT ERUPTED WHEN HE BLOCKED PAY RAISES TWO WEEKS AGO 9403310119 940331 BCE UNIT TO COMBINE UK CABLE OPERATIONS WITH TWO OTHER FIRMS MONTREAL BELL CANADA INTERNATIONAL INC JONES INTERCABLE INC JONES GLOBAL GROUP INC AND CABLE & WIRELESS PLC SAID THEY SIGNED A LETTER OF INTENT TO CONSOLIDATE THEIR CABLE TELEVISION AND ASSOCIATED TELEPHONE OPERATIONS IN THE UNITED KINGDOM THE TRANSACTION WILL COMBINE THE CABLE INTERESTS OF THE COMPANIES INTO BCETI CABLE LTD CURRENTLY 80 OWNED BY BELL CANADA INTERNATIONAL AND 20 BY CABLE & WIRELESS THE MOVE WILL COINCIDE WITH A PUBLIC SHARE OFFERING OF BCETI CABLE FINANCIAL TERMS WEREN'T DISCLOSED BELL CANADA INTERNATIONAL IS A UNIT OF BCE INC MONTREAL CABLE & WIRELESS IS AN INTERNATIONAL TELECOMMUNICATIONS CONCERN JONES GLOBAL IS A UK CABLE OPERATOR AND A SUBSIDIARY OF JONES INTERCABLE BELL CANADA INTERNATIONAL HAS SIGNED A LETTER OF INTENT TO BUY 30 OF JONES INTERCABLE A DENVERBASED COMPANY 9403310118 940331 DYLEX ACQUIRES CLASS C PREFERRED TORONTO DYLEX LTD SAID IT REPURCHASED ALL OUTSTANDING CLASS C PREFERRED SHARES FROM A PRIVATE PARTNERSHIP FOR 18 MILLION CANADIAN DOLLARS US131 MILLION OF 9 CONVERTIBLE SUBORDINATED DEBENTURES THE TORONTOBASED RETAILING CONCERN SAID THE TRANSACTION WILL SIMPLIFY ITS FINANCIAL STRUCTURE AND REPLACE A C26 MILLION ANNUAL DIVIDEND REQUIREMENT ON THE PREFERRED SHARES WITH A C16 MILLION ANNUAL INTEREST PAYMENT 9403310117 940331 ANADARKO ACQUIRES LEASES HOUSTON ANADARKO PETROLEUM CO SAID IT ACQUIRED 26 OF 31 OFFSHORE LEASES IN THE GULF OF MEXICO FOR A TOTAL EXPENDITURE OF 985 MILLION THE COMPANY SAID NEARLY ALL THE BLOCKS INVOLVED EXPLORATION IN THE SUBSALT PLAY THICK AREAS OF SALT UNDER WHICH FORMATIONS OF OIL AND GAS HAVE BEEN IDENTIFIED ANADARKO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERT J ALLISON JR SAID THE PURCHASE WAS AN AGGRESSIVE STEP FOR ANADARKO THAT SHOULD GENERATE EXCELLENT RETURNS EVEN AT TODAY'S LOW CRUDE OIL PRICES 9403310116 940331 ASTRUM UNITS IN RUSSIAN VENTURE NEW YORK THE SAMSONITE AND AMERICAN TOURISTER UNITS OF ASTRUM INTERNATIONAL CORP SAID THEY AGREED TO FORM A JOINT VENTURE WITH A RUSSIAN COMPANY TO MAKE LUGGAGE IN THAT NATION A SPOKESMAN FOR ASTRUM A FISHER ISLAND FLA COMPANY FORMERLY KNOWN AS EII HOLDINGS INC SAID THE AMERICAN TOURISTER AND SAMSONITE UNITS WILL INVEST ABOUT 13 MILLION IN THE VENTURE THEIR RUSSIAN PARTNER NAMED DOKOFA IS BASED IN DONSKOY IN THE TULA REGION ASTRUM SUBSIDIARIES MAKE AND SELL WATERTREATMENT EQUIPMENT CLOTHING PET FOOD AND OTHER PRODUCTS 9403310115 940331 TELEVISION WITH CHRISTY' CBS GOES WHERE FEW HAVE GONE BEFORE TO A RELIGIOUS SERIES BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL CBS INC WILL VENTURE INTO RISKY UNCHARTED TERRITORY THIS EASTER SUNDAY WITH CHRISTY A DRAMA SERIES THAT TAKES A MATTEROFFACT APPROACH TO RELIGION AND SPIRITUALITY THE WEEKLY PROGRAM WILL STICK CLOSELY TO THE 1967 NOVEL OF THE SAME NAME BY INSPIRATIONAL WRITER CATHERINE MARSHALL THE BESTSELLER TRACED THE SPIRITUAL DEVELOPMENT OF 18YEAROLD CHRISTY WHO IN 1912 LEAVES A COMFORTABLE LIFE TO TEACH IN A MISSIONARY SCHOOL IN APPALACHIA THE FIRST THING YOU LEARN AS A PROGRAM EXECUTIVE IS NEVER PROGRAM ANYTHING WHOSE CONTENT HAS TO DO WITH RELIGION AND GOD SAYS JEFF SAGANSKY THE PRESIDENT OF CBS ENTERTAINMENT IT ISN'T HIP STILL HE DOESN'T BELIEVE CHRISTY IS MUCH OF A GAMBLE I THINK THE AUDIENCE IS FAIRLY SCREAMING AT US THAT WE'RE WRONG HE SAYS CITING THE POSITIVE RESPONSE CBS GETS FROM VIEWERS WHEN SUCH SHOWS AS PICKET FENCES AND NORTHERN EXPOSURE ADDRESS RELIGIOUS ISSUES EVEN THOUGH GALLUP SURVEYS CONSISTENTLY SAY THAT AROUND 40 OF AMERICANS ATTEND CHURCH SERVICES AT LEAST ONCE A WEEK NETWORK TELEVISION HASN'T ADDRESSED RELIGION IN A SERIOUS WAY IN ITS PRIMETIME LINEUP WHEN IT HAS DEALT WITH RELIGION IT IS TYPICALLY AS A FOIL IN SITCOMS LIKE NBC'S AMEN WHICH STARRED SHERMAN HEMSLEY AS A DEACON WITH THE EXCEPTION OF BIBLICAL MOVIES THE ROLE OF RELIGION IN TELEVISION DRAMA HAS TENDED TO BE ALONG THE LINES OF ABC'S MINISERIES THE THORN BIRDS WHICH STARRED RICHARD CHAMBERLAIN AS A CATHOLIC PRIEST WHO CAVES IN TO SEXUAL DESIRE ABC'S THIRTYSOMETHING SERIES OCCASIONALLY EXPLORED SUCH TOPICS AS A FATHER'S DESIRE TO HAVE HIS NEWBORN SON CIRCUMCISED IN THE JEWISH TRADITION BUT MORE COMMON ARE PLOT LINES SUCH AS THE CURRENT ONE ON NBC'S LA LAW FEATURING A VIRGINAL BIBLEQUOTING CHRISTIAN ATTORNEY WHO ENDURES THE SEDUCTION ANTICS OF SLIMY DIVORCE LAWYER ARNOLD BECKER TELEVISION TENDS TO TREAT RELIGION AS IRRELEVANT OR PUTS IT DOWN IN THE SAME WAY IT POKES FUN AT OTHER AUTHORITY FIGURES SAYS WILLIAM FORE WHO TEACHES COMMUNICATION AT YALE UNIVERSITY'S DIVINITY SCHOOL ONE EXCEPTION WAS ABC'S SHORTLIVED 1989 SITCOM HAVE FAITH ABOUT FOUR CHICAGO PRIESTS ITS RERUNS WILL SOON AIR ON THE FAITH AND VALUES NETWORK A CABLE CHANNEL SHARED BY THE VISION INTERFAITH SATELLITE NETWORK A CONSORTIUM OF 64 PROTESTANT CATHOLIC JEWISH AND EASTERN ORTHODOX GROUPS AND THE SOUTHERN BAPTIST CONVENTION FIVEYEAROLD VISN WHOSE PROGRAMS DEAL WITH SPIRITUAL ETHICAL AND MORAL ISSUES HAS HAD LITTLE SUCCESS FINDING SUITABLE US NETWORK SHOWS TO RERUN IT HAS TURNED TO BRITISH AND CANADIAN PRODUCTIONS OR PRODUCED DRAMAS ITSELF SOME BELIEVE RELIGIOUS ISSUES ARE TOO COMPLEX FOR TELEVISION IT'S VERY DIFFICULT IN A VISUAL MEDIUM TO BE ABLE TO DEAL WITH THE INTERIOR DIALOGUE THAT GOES ON THAT IS AN ELEMENT OF FAITH AT WORK SAYS DAVE POMEROY DIRECTOR OF ELECTRONIC MEDIA FOR THE NATIONAL COUNCIL OF THE CHURCHES OF CHRIST IN THE USA AT BEST WHAT WE CAN HOPE FOR IS TELEVISION THAT DEALS WITH THE WAYS IN WHICH THOSE WHO HAVE FAITH CONVICTIONS ACT UPON THOSE IN THE WORLD BUT JEFF WEBER VISN'S EXECUTIVE VICE PRESIDENT THINKS THE PROBLEM IS BIGGER THAN THAT IN THIS COUNTRY THERE'S ALMOST A CULTURAL PROHIBITION AGAINST GOD TALK HE SAYS THE MEDIA AS WELL AS OTHER INSTITUTIONS ARE UNEASY WITH THINGS RELIGIOUS BUT VIEWERS AREN'T HE ARGUES VISN'S RESEARCH SHOWS THAT THERE'S A SPIRITUAL YEARNING AND HUNGER OUT THERE NOT NECESSARILY FOR RELIGION WITH A BIG R' BUT A YEARNING FOR MEANING CBS'S MR SAGANSKY AGREES THAT THERE'S A HIDDEN AUDIENCE FOR SUCH SHOWS EVEN THOUGH IT GOES AGAINST THE RULES FOR INSTANCE HE NOTES THE RATINGS FOR CBS'S QUIRKY PICKET FENCES HAVE GROWN 11 THIS YEAR WITH AN INCREASING NUMBER OF RELIGIOUSTHEMED EPISODES SUCH AS A MODERNDAY VIRGIN BIRTH MR SAGANSKY STARTED PURSUING CHRISTY IN 1990 WHEN HIS WIFE A FORMER PROGRAMMING EXECUTIVE BROUGHT THE BOOK TO HIS ATTENTION BUT KEN WALES A PRODUCER WHO HELD THE RIGHTS TO CHRISTY WANTED TO DO A THEATRICAL MOVIE MR SAGANSKY INSTEAD HAD CBS DEVELOP DR QUINN MEDICINE WOMAN A FAMILYORIENTED HIT ABOUT A FRONTIER DOCTOR MR WALES THE SON OF A MINISTER HAD BEEN TRYING TO DO A CHRISTY MOVIE SINCE 1976 WHEN THE FORMER MGM STUDIO HELD THE RIGHTS THE BOOK WHICH HAS SOLD EIGHT MILLION COPIES IS RICH IN MOUNTAIN LORE AND DIALECT AS WELL AS RELIGIOUS DEBATE IT HAS ALL THE ELEMENTS OF WHAT I THINK IS GOOD STORYTELLING SAYS MR WALES LOVE HONOR COMPASSION HUMOR AND ONE THING OFTEN FORGOTTEN SACRIFICE MGM HAD KILLED A CHRISTY PROJECT IN 1969 AND MR WALES COULDN'T GET THE STUDIO TO REVIVE IT HE ACQUIRED THE RIGHTS IN 1986 BUT HIS FINANCING FOR A FILM FELL APART AFTER THE 1987 STOCK MARKET CRASH HE FINALLY AGREED TO A TV SERIES LAST YEAR WHEN MR SAGANSKY SUGGESTED THE PROJECT TO BARNEY ROSENZWEIG EXECUTIVE PRODUCER OF CBS'S FORMER SHOW CAGNEY & LACEY MR WALES AND MR ROSENZWEIG ARE COEXECUTIVE PRODUCERS OF THE SHOW WHICH STARS KELLIE MARTIN MOST RECENTLY SEEN IN ABC'S LIFE GOES ON IN THE TITLE ROLE TYNE DALY WHO COSTARRED IN CAGNEY & LACEY PLAYS ALICE HENDERSON THE QUAKER WOMAN WHO LEADS THE MISSION AFTER SUNDAY'S OPENING EPISODE THE SHOW WILL AIR AT 8 PM THURSDAYS MR ROSENZWEIG SAYS HE WAS INITIALLY PUT OFF BY THE BOOK'S LAVENDER COVER IT SEEMED LIKE A YOUNG GIRL'S PIECE BUT HE CHANGED HIS MIND AFTER READING IT CHRISTY HE SAYS WAS AMERICA'S FIRST VISTA VOLUNTEER HE ALSO SENSES VIEWERS WANT MORE SPIRITUAL THEMES SOCIETY IS HAVING TROUBLE IT ISN'T WORKING PEOPLE ARE TURNING TO THINGS MORE TRADITIONAL YALE'S MR FORE THINKS THE SHOW COMING AS CONGRESS IS PRESSURING TELEVISION EXECUTIVES TO REDUCE ONAIR VIOLENCE WILL BE A LITMUS TEST AS TO WHETHER THE AMERICAN PUBLIC REALLY WANTS A QUALITY KIND OF PROGRAM WHETHER THEY'LL VOTE WITH THEIR EYEBALLS MR ROSENZWEIG ADDS AMERICA'S NOTORIOUS FOR TELLING US WHAT THEY WANT TO SEE AND THEN NOT WATCHING IT OF COURSE VIEWERS MAY NOT TUNE IN BECAUSE OF REVIEWS NEW YORK DAILY NEWS CRITIC ERIC MINK DUBBED THE SHOW MISS CHRISTY RELIGION WOMAN AFTER DR QUINN HE CALLS IT FLIMSY AND TERRIBLY SCRIPTED TV GUIDE CRITIC JEFF JARVIS EQUATES THE SHOW WITH LITTLE HOUSE ON THE PRAIRIE AND RATES IT A FOUR ON A 010 SCALE TYNE DALY'S SERMONS ARE HARD TO BEAR HE SAYS 9403310114 940331 INVESTMENT BANKING OPERATION TO EXPAND AT CANADIAN IMPERIAL TORONTO CANADIAN IMPERIAL BANK OF COMMERCE UNVEILED A FIVEYEAR PLAN TO EXPAND ITS GLOBAL INVESTMENT BANKING CAPABILITIES IN ORDER TO REDUCE THE BANK'S DEPENDENCE ON TRADITIONAL CORPORATE LENDING AS PART OF THE PLAN CANADIAN IMPERIAL SAID IT WILL SET UP A NEW ENTITY WHICH HASN'T YET BEEN NAMED TO CONTAIN THE BANK'S EXISTING CORPORATE AND INVESTMENT BANKING OPERATIONS AS WELL AS THOSE OF WOOD GUNDY INC A TORONTO SECURITIES FIRM THAT IS 75OWNED BY THE BANK THE NEW COMPANY WILL CONTINUE TO OPERATE OUT OF THE BANK'S OFFICES IN TORONTO NEW YORK AND VARIOUS EUROPEAN AND ASIAN CITIES CANADIAN IMPERIAL SAID THE COMBINED ORGANIZATION WILL OFFER CUSTOMERS A WIDER SELECTION OF UNDERWRITING AND INVESTMENT BANKING SERVICES INCLUDING EQUITY DEBT DERIVATIVES AND CURRENCY PRODUCTS THE CORPORATE BANKING PERFORMANCE OVER THE LAST 10 YEARS HAS NOT BEEN ACCEPTABLE ON A RISK/RETURN BASIS ON THE OTHER HAND WE'VE SEEN EXCELLENT GROWTH AND RETURNS IN OUR INVESTMENT BANKING OPERATIONS SAID JOHN HUNKIN CANADIAN IMPERIAL'S PRESIDENT IN CHARGE OF CORPORATE AND INVESTMENT BANKING THE BANK WHICH LAST YEAR GENERATED ABOUT TWOTHIRDS OF ITS REVENUE FROM LENDING MONEY HAS TARGETED REDUCING THIS TO ABOUT HALF OF TOTAL REVENUE BY THE END OF THE DECADE AL FLOOD THE BANK'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE REDUCED RELIANCE ON TRADITIONAL CREDIT PRODUCTS WILL MAKE CANADIAN IMPERIAL A STRONGER COMPANY IT WILL GIVE IT A STRONGER BALANCE SHEET AND IT WILL ENHANCE ITS PROFITS 9403310113 940331 COOPER INDUSTRIES UNIT'S ORDERS HOUSTON COOPER ENERGY SERVICES A UNIT OF COOPER INDUSTRIES INC SAID IT RECEIVED THREE ORDERS FOR GAS COMPRESSION EQUIPMENT VALUED AT OVER 11 MILLION THE COMPANY SAID PARSONS OVERSEAS CO ORDERED TWO SINGLESTAGE PENN COMPRESSORS ON BEHALF OF YUKONG LTD AN OIL COMPANY IN KOREA THEY ARE SCHEDULED FOR DELIVERY IN THE FOURTH QUARTER OF 1994 MOBIL CORP'S MOBIL EXPLORATION & PRODUCING US INC UNIT OF MIDLAND TEXAS ORDERED A COOPERBESSEMER COMPRESSOR TO BE DELIVERED IN THE FOURTH QUARTER TENNECO INC'S HOUSTONBASED TENNESSEE GAS PIPELINE UNIT ORDERED TWO 8000HORSEPOWER COOPERBESSEMER INTEGRAL ENGINECOMPRESSORS FOR NATURAL GAS COMPRESSION SERVICE FOR DELIVERY IN THE FIRST QUARTER OF 1995END 9403310112 940331 WHO'S NEWS USAIR NAMES FINANCE OFFICER TO BE PRESIDENT BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL USAIR GROUP INC SAID IT NAMED FRANK L SALIZZONI ITS TOP FINANCIAL OFFICER AS PRESIDENT AND CHIEF OPERATING OFFICER AMID A BROAD RESHUFFLING OF THE AIRLINE'S OPERATIONAL DUTIES THE SHIFTING OF ASSIGNMENTS APPEARED TO BE RELATED TO THE RESIGNATION YESTERDAY OF MICHAEL R SCHWAB USAIR'S FIFTHHIGHEST RANKING OFFICER WHO WAS RESPONSIBLE FOR AIRLINE OPERATIONS USAIR'S OPERATIONS WHICH INCLUDE FLIGHT AND CREW SCHEDULING AND DISPATCHING HAVE BEEN CRITICIZED LATELY BY THE CARRIER'S UNIONS MR SCHWAB 48 YEARS OLD DIDN'T RETURN PHONE CALLS A SPOKESMAN FOR ARLINGTON VABASED USAIR CONFIRMED THAT MR SCHWAB AN OFFICER OF THE AIRLINE SINCE 1989 HAD RESIGNED THE SPOKESMAN WOULDN'T ELABORATE MR SALIZZONI 55 HAD BEEN EXECUTIVE VICE PRESIDENT FINANCE AS PRESIDENT HE SUCCEEDS SETH E SCHOFIELD 54 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE THE TITLE OF CHIEF OPERATING OFFICER IS NEW MR SALIZZONI WILL OVERSEE FINANCE MAINTENANCE PURCHASING CUSTOMER SERVICES AND OPERATIONS THE COMPANY SAID DAYTODAY RESPONSIBILITY FOR FLIGHT OPERATIONS HAS BEEN COMBINED UNDER GENE SHARP A USAIR VICE PRESIDENT HE WILL REPORT TO MR SALIZZONI USAIR HAS BEEN UNABLE TO STEM MOUNTING LOSSES BECAUSE OF FARE CUTS LAUNCHED TO COMPETE WITH LOWERCOST RIVALS ON IMPORTANT EAST COAST ROUTES THE COMPANY RECENTLY REQUESTED THAT ITS UNIONS AGREE TO WAGE AND WORKRULE CONCESSIONS TO HELP CUT ANNUAL OPERATING COSTS BY ABOUT 9 OR 600 MILLION THE LABOR GROUPS ARE REVIEWING THE REQUEST THE POWERFUL PILOTS UNION HOWEVER HAS BEEN COOL TO THE IDEA ARGUING THAT MANAGEMENT SQUANDERED PREVIOUS GIVEBACKS IN 1992 THE PILOTS AGREED TO MORE FLEXIBLE WORK RULES THAT ALLOWED THEM TO FLY LONGER AT NO EXTRA LABOR COST TO THE COMPANY THE PILOTS CLAIMED THAT USAIR WASTED OPPORTUNITIES TO SCHEDULE THEM MORE OFTEN AND EXPAND FLIGHT OPERATIONS PETER J GAUTHIER CHAIRMAN OF USAIR'S PILOTS UNION APPLAUDED THE MANAGEMENT CHANGES STATING WE LOOK FORWARD TO WORKING WITH MR SALIZZONI TO IMPROVE THE EFFICIENCIES OF OUR DAILY OPERATIONS MR SALIZZONI JOINED USAIR IN 1990 AS AN EXECUTIVE VICE PRESIDENT PREVIOUSLY HE WORKED FOR TRANS WORLD AIRLINES FOR TWO DECADES HOLDING SEVERAL TOP FINANCIAL MANAGEMENT POSITIONS MR SALIZZONI WAS USAIR'S THIRDRANKED OFFICER AFTER MR SCHOFIELD AND W THOMAS LAGOW WHO IS EXECUTIVE VICE PRESIDENT MARKETING SUCCEEDING MR SALIZZONI IS JOHN W HARPER FORMERLY SENIOR VICE PRESIDENT INFORMATION SERVICES WHO WAS NAMED CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT FINANCE MR HARPER IS 53 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY USAIR SLIPPED 375 CENTS TO 8 AMID A SHARPLY DOWN MARKET NONETHELESS STOCK ANALYSTS SAID MR SALIZZONI'S PROMOTION WOULD ENHANCE USAIR'S IMAGE ON WALL STREET FOR A COMPANY GOING THROUGH FINANCIAL PRESSURE TO HEIGHTEN THE PROFILE OF THE FINANCIAL GUY WAS A WISE MOVE SAID KEVIN MURPHY AIRLINE ANALYST WITH MORGAN STANLEY & CO HE HAS A HIGH DEGREE OF CREDIBILITY IN THE FINANCIAL COMMUNITY 9403310111 940331 AS ANY SCHOOLCHILD CAN TELL YOU THIRTY DAYS HATHFEBRUARY BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL IN THE CHRISTIAN WORLD EASTER SUNDAY FALLS ON APRIL 3 THIS YEAR BUT IF YOU HAPPEN TO HAVE A WALL CALENDAR FROM THE JESUIT SEMINARY AND MISSION BUREAU IT ALSO FALLS ON APRIL 10 CONFUSED THERE'S MORE PRESIDENT'S DAY IS DOWN FOR THE 14TH OF FEBRUARY WHICH LED ONE OF THE 25000 RECIPIENTS OF THE CALENDAR TO TAKE A LONG WEEKEND IN FLORIDA A WEEK AHEAD OF TIME AND THEN THERE WAS THE MATTER OF THOSE TWO EXTRA DAYS THE CALENDAR INCLUDED IN FEBRUARY THE 29TH AND 30TH SO TOO THE ONE EXTRA DAY IN APRIL THE 31ST HOW COULD THE JESUITS THE ROMAN CATHOLIC ORDER OF PRIESTS KNOWN FOR THEIR SCHOLASTIC ACUMEN BE SO OFF BASE SOME MAY HAVE SUSPECTED THE DUAL EASTERS TO BE A JESUITICAL PLOT TO BOOST CHURCH ATTENDANCE ACTUALLY IT WAS THE WORK OF A PRINTER'S DEVIL WHO WAS GIVEN PROOFED COPY FATHER JOHN RYAN SJ DIRECTOR OF THE MANHATTANBASED MISSION BUREAU ISN'T SAYING WHO IN A LETTER CORRECTING THE ERRORS HE POKED FUN AT HIMSELF AND ASKED FOR CONTINUED SUPPORT FOR THE WORK OF THE MISSION BUREAU THE ORDER'S 23466 PRIESTS SCHOLARS AND BROTHERS SERVE IN 122 COUNTRIES ONE REPLY TOLD FATHER RYAN NOT TO FEEL BAD BECAUSE HE STILL GOT ST PATRICK'S DAY CORRECT ANOTHER SAID THE GOOFS SHOWED WE'RE ALL HUMAN EVEN OCCASIONALLY THE SJ'S SOCIETY OF JESUS AND CATCHING THE IRONY OF ADDING DAYS TO THE YEAR A WRITER SAID EVEN POPE GREGORY WOULD HAVE LAUGHED POPE GREGORY XIII HAD REFORMED THE CALENDAR IN 1582 BY TRIMMING 10 DAYS TO MATCH THE TRUE LENGTH OF THE SOLAR YEAR AT LEAST FATHER RYAN ISN'T ALONE AMERICAN EXPRESS CO'S POCKET DIARIES THIS YEAR HAD FOUR OF NINE JEWISH HOLIDAYS INCLUDING PASSOVER AND HANUKKAH OFF BY A DAY THE COMPANY SENT OUT AN ERRATA MEMO LAST MONTH TO CARD HOLDERS AND EMPLOYEES WHO HAD PURCHASED THE DATE BOOKS AND THEN THERE WAS THE CORRECTION IN THE CANADIAN JESUIT MISSION NEWSLETTER NOTED LAST YEAR BY THE NEW YORKER MAGAZINE IT SAID FR JP HORRIGAN SJ THE EXECUTIVE DIRECTOR OF THE CANADIAN JESUIT MISSIONS DID NOT TRAVEL TO INDIA IN MARCH WITH THE AMERICAN SINGER ROSEMARY CLOONEY HE WENT WITH GERRY COONEY OF THE MONTREAL CONSULTING GROUP UNIVERSALIA 9403310109 940331 CANADIAN HOLIDAY CLOSINGS OTTAWA STOCK EXCHANGES BANKS GOVERNMENT OFFICES AND MOST BUSINESSES IN CANADA WILL BE CLOSED TOMORROW FOR THE GOOD FRIDAY HOLIDAY MOST GOVERNMENT OFFICES ALSO WILL BE CLOSED MONDAY THERE WON'T BE ANY MAIL DELIVERY IN CANADA EITHER DAY 9403310108 940331 LISTENING TO ELI LILLY PROZAC HYSTERIA HAS GONE TOO FAR BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL SEEKING TO CONTROL THE TIDAL WAVE OF CELEBRITY FOR ITS ANTIDEPRESSANT DRUG PROZAC ELI LILLY & CO IS LAUNCHING AN UNUSUAL AD CAMPAIGN TO DEPLORE THE MEDIA'S ROLE IN EXAGGERATING THE DRUG'S POWER AND MAKING LIGHT OF DEPRESSION THE AD HEADLINED TRIVIALIZING A SERIOUS ILLNESS CALLS PROZAC THE SUBJECT OF AN UNPRECEDENTED AMOUNT OF MEDIA ATTENTION IN RECENT WEEKS AND DECLARES MUCH OF THIS ATTENTION HAS TRIVIALIZED THE VERY SERIOUS NATURE OF THE DISEASE PROZAC WAS SPECIFICALLY DEVELOPED TO TREAT CLINICAL DEPRESSION IT CONTINUES PROZAC IS INTENDED AS ARE ALL LILLY MEDICINES FOR USE ONLY WHERE A CLEAR MEDICAL NEED EXISTS AND WHEN THE SCIENTIFIC DATA HAVE DETERMINED SAFETY AND EFFECTIVENESS THE AD A FULL PAGE OF TEXT BEGAN RUNNING THIS WEEK IN PSYCHIATRIC NEWS A BIWEEKLY NEWSPAPER AND WILL APPEAR IN HALF A DOZEN OTHER TOP MEDICAL JOURNALS AND TRADE PUBLICATIONS THE CAMPAIGN FOLLOWS MOUNTING CONCERN INSIDE LILLY'S INDIANAPOLIS HEADQUARTERS ABOUT PROLIFERATING REFERENCES TO PROZAC IN JOKES AND CARTOONS AND IN ARTICLES THAT ANDREW WEBER A LILLY SPOKESMAN CALLED HAPPYPILL KINDS OF STORIES THE ONES THAT TALK ABOUT THE FACT THAT YOU CAN POP A PILL AND CHANGE YOUR PERSONALITY LILLY OFFICIALS SAID THEY WORRY THESE SOUND BITES WILL DETER PATIENTS WITH GRAVE CLINICAL DEPRESSION FROM TAKING THEIR DISORDER SERIOUSLY AND SEEKING TREATMENT THEY ALSO WORRY THAT PUBLICITY BELITTLING OR OVERSELLING PROZAC COULD HURT EFFORTS TO INCLUDE MENTAL ILLNESS IN A NATIONAL HEALTH PLAN THE NEW AD CAMPAIGN IS AN UNEXPECTED STEP FOR THE DRUG GIANT SINCE ALL THE PUBLICITY IS HARDLY HURTING PROZAC'S SALES THE DRUG RAN UP AN ASTONISHING 13 BILLION IN SALES FROM 1993 ABOUT A 30 GAIN FROM 1992 MORE THAN 10 MILLION PEOPLE HAVE TAKEN PROZAC AND SOME INDUSTRY STATISTICS RANK IT THE NO 2 BESTSELLING DRUG IN THE WORLD BEHIND GLAXO HOLDINGS PLC'S ULCERHEALING BLOCKBUSTER ZANTAC MR WEBER SAID LILLY IS PARTICULARLY CONCERNED ABOUT THE DEPICTION OF THE DRUG IN PETER KRAMER'S BESTSELLER LISTENING TO PROZAC THE BOOK SPARKED MUCH OF THE RECENT FASCINATION WITH PROZAC AND UNTOLD SALES OF THE DRUG BY DESCRIBING PATIENTS WHO AREN'T CLINICALLY DEPRESSED BUT STILL FEEL HAPPIER MORE PRODUCTIVE AND BETTER THAN WELL ON PROZAC WE CANNOT FIND ANY BASIS IN OUR CLINICAL WORK TO SUPPORT SOME OF THE THINGS HE DISCUSSES SAID MR WEBER IN THIS KIND OF ATMOSPHERE YOU GET ANECDOTAL REPORTS OF SOMEONE WHO HAS HAD A BETTERTHANWELL' EXPERIENCE AND PEOPLE EXPECT THAT AS BEING THE NORM AND IN REALITY THAT DOESN'T HAPPEN AS EXAMPLES OF OTHER PROZAC REFERENCES THAT WORRY LILLY MR WEBER MENTIONED A LIFE IN HELL COMIC STRIP ABOUT A PRETERNATURALLY HAPPY CHARACTER WHO DISCOVERS SOMEONE PUT PROZAC IN HIS CORNFLAKES HE ALSO SINGLED OUT A NEW YORKER CARTOON THAT READ IF THEY HAD PROZAC IN THE NINETEENTH CENTURY IT DEPICTS A GRINNING KARL MARX DECLARING SURE CAPITALISM CAN WORK OUT ITS KINKS AND EDGAR ALLAN POE SAYING HELLO BIRDIE TO A RAVEN IT SOUNDS KIND OF LIKE CROCODILE TEARS TO ME SAYS JOURNALIST ROBERT WRIGHT AUTHOR OF A RECENT NEW REPUBLIC COVER STORY ABOUT THE IMPLICATIONS OF PROZAC ON HEALTHCARE REFORM I CAN'T BELIEVE LILLY IS BOTHERED BY THE FACT THAT SOME PEOPLE ARE SUGGESTING THAT EVERYONE GO TRY PROZAC HE SAYS BUT LILLY OFFICIALS SAID THEY HAVE SERIOUS CAUSE TO TRY TO REIN IN THE PROZAC PUBLICITY ANYTHING THAT CONFUSES THE APPROPRIATE USE OF PROZAC OR ANY OF THE ANTIDEPRESSANTS IN THE MIND OF THE PUBLIC MIGHT SCARE PEOPLE AWAY FROM USING THE MEDICATION OR PERHAPS EVEN SCARE PHYSICIANS FROM PRESCRIBING IT SAID STEVEN PAUL THE LILLY VICE PRESIDENT IN CHARGE OF CENTRAL NERVOUSSYSTEM RESEARCH DR PAUL CITED GOVERNMENT STATISTICS SUGGESTING THAT ONLY ABOUT A THIRD OF THE ROUGHLY 12 MILLION AMERICANS WITH SERIOUS DEPRESSION ARE RECEIVING TREATMENT GETTING BOGGED DOWN IN THE DEBATE OVER WHETHER PROZAC OFFERS SUBTLER PERSONALITY CHANGES WAS INTERFERING WITH EFFORTS TO REACH SERIOUS DEPRESSION PATIENTS DR PAUL SAID THE CAMPAIGN ALSO COMES AMID CONTINUING ASSAULTS ON LILLY BY A WIDE RANGE OF CRITICS SINCE PROZAC'S LAUNCH SIX YEARS AGO THE CHURCH OF SCIENTOLOGY HAS ASSAILED THE DRUG AS A KILLER DRUG LINKED TO MURDER AND SUICIDE LILLY MAY BE SENSING THAT IF THE DISCUSSION OF THIS DRUG AS A PERSONALITYCHANGER OR LIFEENHANCER BECOMES THE PREDOMINANT WAY PEOPLE THINK ABOUT IT THEN IT WILL BE VERY VULNERABLE TO ATTACKS AS SOMETHING NEW AND DANGEROUS THAT SOCIETY OUGHT TO FEAR AND REGULATE SAID FREDERICK GOODWIN HEAD OF THE NATIONAL INSTITUTE OF MENTAL HEALTH DR KRAMER THE AUTHOR OF LISTENING TO PROZAC SAID LILLY HAS NEVER CRITICIZED HIM OR HIS BOOK DIRECTLY BUT HE UNDERSTOOD THE COMPANY'S CONCERN HE NOTED THAT LILLY COULD CONCEIVABLY FACE LIABILITY FOR ADVERSE EFFECTS TO THE LEGIONS OF NEW PROZAC PATIENTS WHO AREN'T CLINICALLY DEPRESSED I CAN SEE THEM WANTING TO DISTANCE THEMSELVES FROM THAT SORT OF USAGE EVEN IF LET'S SAY THEY'RE SECRETLY PLEASED TO SEE IT GO ON HE SAID BUT HE ADDED I DON'T THINK THE PEOPLE IN MY BOOK HAVE TRIVIAL INDICATIONS WHETHER OR NOT THEY RISE TO THE LEVEL OF DIAGNOSIS UNDER OUR CURRENT SYSTEM THE PEOPLE I WRITE ABOUT ARE SERIOUSLY SUFFERING HAVE BEEN FOR A LONG TIME AND THE DIFFERENCE THE DRUG MAKES IS IMPORTANT EVEN THOUGH THE PHRASE COSMETIC PSYCHOPHARMACOLOGY' IS IN THE BOOK I DON'T THINK THE USAGE IS IN ANY WAY NOT MEDICAL 9403310107 940331 FUJI PHOTO FACES STIFF US TARIFFS ON PAPER IMPORTS BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL THE US COMMERCE DEPARTMENT PROPOSED STIFF TARIFFS AGAINST FUJI PHOTO FILM CO OF 36095 FOR PHOTOGRAPHIC PAPER FROM JAPAN AND 32123 FOR PAPER FROM THE NETHERLANDS THE TENTATIVE TARIFFS EXCEED THE 275 PENALTIES SOUGHT BY RIVAL EASTMAN KODAK CO WHICH CHARGED FUJI WITH ILLEGALLY DUMPING COLOR PHOTOGRAPHIC PAPER IN THE US THEY ARE AMONG THE HIGHEST TARIFFS EVER PROPOSED AGAINST A JAPANESE COMPANY'S PRODUCTS A COMMERCE OFFICIAL SAID A FINAL RULING ON THE TARIFF AMOUNTS ISN'T EXPECTED UNTIL AUGUST MEANWHILE PEOPLE CLOSE TO FUJI SAID THE COMPANY IS CONSIDERING SEVERAL STEPS IT COULD TAKE OVER THE NEXT 18 MONTHS TO REDUCE THE SIZE OF THE POTENTIAL PENALTIES AT THE END OF THAT PERIOD THE COMPANY CAN ASK FOR AN ADMINISTRATIVE REVIEW TO RECONSIDER ANY TARIFFS THOSE STEPS INCLUDE BOOSTING ITS SALES IN THE NETHERLANDS TO ABOVE 5 OF ITS TOTAL SALES THEN LOWERING ITS PRICES IN THE NETHERLANDS WHICH COULD SIGNIFICANTLY DECREASE ANY TARIFFS IMPOSED BY THE COMMERCE DEPARTMENT ON PAPER IMPORTED FROM THE NETHERLANDS FUJI MUST HAVE AT LEAST 5 OF ITS SALES IN THE NETHERLANDS FOR THE COMMERCE DEPARTMENT TO USE THE COMPANY'S NETHERLANDS' PAPER PRICES AS A BASE OF COMPARISON WITH PRICES IN THE US CURRENTLY FUJI HAS ABOUT 4 OF ITS SALES IN THE NETHERLANDS BUT IT MAKES VIRTUALLY ALL OF THE PAPER IT EXPORTS TO THE US IN THE NETHERLANDS BECAUSE FUJI HAS ALL BUT ELIMINATED SHIPMENTS FROM JAPAN TO THE US THE TARIFF IMPOSED ON JAPANESE IMPORTS COULD BE MADE MOOT KODAK SAID YESTERDAY'S RULING UPHELD ITS ALLEGATIONS THAT PHOTOGRAPHIC PAPER FROM JAPAN IS BEING DUMPED IN THE US AT PRICES LESS THAN ONEFOURTH THE PRICES CHARGED IN JAPAN IT ADDED THAT THE SITUATION IN JAPAN HAD SKEWED THE GLOBAL COMPETITIVE BALANCE ALTHOUGH FUJI SAID YESTERDAY THAT IT BELIEVED IN THE END WE WILL BE FOUND BLAMELESS THE COMPANY REITERATED ITS PLANS TO BUILD A US PAPER PLANT IN GREENWOOD SC THAT WOULD MAKE IT A DOMESTIC PRODUCER AND IT WOULD NOT BE SUBJECT TO ANY TARIFFS THE PLANT IS SCHEDULED FOR COMPLETION IN 1995 FOR NOW THE COMPANY MUST PAY A SMALL PREMIUM TO POST A BOND THROUGH ITS FUJI PHOTO FILM USA INC DIVISION WHICH IS THE SOLE IMPORTER FOR FUJI PAPER THE BOND WILL COVER ANY PRICE DISCREPANCIES ON IMPORTS OF COLOR PAPERPENDING THE POSSIBILITY THAT ACTUAL ANTIDUMPING DUTIES ARE IMPOSED DUTIES CAN'T BE IMPOSED UNTIL OCTOBER AT WHICH TIME THE INTERNATIONAL TRADE COMMISSION IS EXPECTED TO HAVE DETERMINED WHETHER THERE WAS ACTUAL MATERIAL INJURY OR THREAT OF MATERIAL INJURY TO KODAK 9403310106 940331 WEDNESDAY'S MARKETS INDUSTRIALS FALL 7227 BONDS DROP DESPITE STOCK LOSSES SOME EXPECT EASING OF SELLING PRESSURE BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL STOCK PRICES SWUNG WILDLY IN EXTREMELY NERVOUS TRADING WITH THE DOW JONES INDUSTRIAL AVERAGE FALLING MORE THAN 70 POINTS BY THE CLOSE TO ITS LOWEST LEVEL SINCE EARLY NOVEMBER BOND PRICES FELL AND THE DOLLAR WAS MIXED THE DOW INDUSTRIALS SLUMPED MORE THAN 50 POINTS EARLY IN THE SESSION THEN CLIMBED BACK NEARLY TO ITS OPENING LEVEL IN THE AFTERNOON THE BLUECHIP AVERAGE SLID INTO ANOTHER FREEFALL WITH THE AVERAGE ENDING AT ITS LOW FOR THE DAY DOWN 7227 POINTS OR 2 TO 362675 ANALYSTS SAID STOCK PRICES CONTINUED TO FOLLOW THE LEAD OF THE BOND MARKET BOND PRICES ALSO FLUCTUATED DURING THE DAY DRAGGING STOCKS ALONG YOU HAD TWO BIG SQUALLS IN THE BOND MARKET AND THAT'S WHEN STOCKS REALLY GOT HIT SAID DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS A WAVE OF SELLING THAT HIT STOCKS RIGHT NEAR THE CLOSE WAS PARTICULARLY WORRYING SAID MR SHULMAN WHEN THE STOCK MARKET WAS RALLYING YOU'D HAVE PEOPLE BUYING AT THE CLOSE HE SAID NOW WE'RE HAVING SELLERS MOVE IN NEAR THE END OF TRADING THAT SHOWS THE CHANGE IN SENTIMENT BUT THE STEEP DECLINES AND WILD GYRATIONS AREN'T REASON FOR PANIC SAID AC MOORE PORTFOLIO MANAGER AND STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF MR MOORE SAID THAT THE SHARP DECLINES INDICATE THAT INVESTORS ARE SEARCHING FOR THE BOTTOM OF THE CORRECTION HE ADDED THAT SOME OF HIS TECHNICAL MARKET INDICATORS SHOW THAT THE RECENT PLUNGE MAY BE RUNNING OUT OF STEAM BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY ARGUES THAT THE SHARP PRICE SWINGS MAY SIGNAL THE LAST DAYS OF THE MARKET CORRECTION MR WIEN HAS FORECAST A DOWNTURN OF 10 AND THE INDUSTRIAL AVERAGE IS NOW 88 BELOW ITS HIGH THIS CORRECTION IS LIKE A FIGHTER WHO GETS UP OFF THE CANVAS BUT HAS ONLY THREE PUNCHES LEFT AND GOES DOWN AGAIN HE SAID THIS IS A FIGHT THAT SHOULD BE CALLED OVERSEAS STOCK MARKETS IN ASIA AND EUROPE WERE AFFECTED BY WALL STREET'S WOES HONG KONG SHARES TUMBLED 26 AFTER THE DOW JONES INDUSTRIALS FELL 63 POINTS ON TUESDAY IN TOKYO STOCK PRICES SANK 08 PARTLY BECAUSE OF THE STRONG YEN AND CONTINUING TRADE FRICTIONS WITH THE US AMONG EUROPE'S BIGGER STOCK MARKETS FRANCE FELL 19 AND BRITAIN AND GERMANY 1 EACH THE UK WAS ALSO HIT BY THE FEELING THAT PRIME MINISTER JOHN MAJOR IS PARTICULARLY INEPT IN HIS EUROPEAN POLICY SAID JAMES CORNISH A EUROPEAN MARKET STRATEGIST AT NATWEST MARKETS LTD IN LONDON THE ONLY EUROPEAN MARKET TO BUCK THE TREND WAS ITALY UP 26 ON RISING OPTIMISM AFTER THE RECENT ELECTIONS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 111 TO 11236 IN MAJOR MARKET ACTION STOCK PRICES PLUNGED VOLUME TOTALED 3901 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 2041 ISSUES FELL AND 357 ROSE THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16750 MARKS AND 10285 YEN COMPARED WITH 16735 MARKS AND 10313 YEN TUESDAY 9403310105 940331 HALLIBURTON IN RUSSIAN VENTURE HOUSTON HALLIBURTON CO'S HALLIBURTON ENERGY SERVICES UNIT SAID IT SIGNED A COOPERATIVE PACT TO MAKE OIL WELL CEMENTING UNITS WITH GERS A RUSSIAN OILFIELD SERVICES COMPANY HALLIBURTON HAS MORE THAN A 50 STAKE IN THE VENTURE AND SAYS THAT RUSSIA'S CEMENTING MARKET IS ESTIMATED TO BE ABOUT 400 MILLION A YEAR THE COMPANY WILL EXPORT CEMENTING UNITS MANUFACTURED IN TEXAS AND OKLAHOMA TO RUSSIA WHERE GERS WILL ARRANGE FOR THEM TO BE MOUNTED ON RUSSIAN TRUCKS HALLIBURTON PLANS TO HELP GERS INCREASE THE RUSSIAN CONTENT AND TECHNOLOGY IN THE CEMENTING UNITS OVER TIME 9403310104 940331 AVIS NYNEX TO OFFER FREE PHONE ASSISTANCE TO RENTALCAR DRIVERS NEW YORK AVIS INC AND NYNEX CORP ARE LAUNCHING A JOINT PROJECT THAT GIVES RENTALCAR DRIVERS FREE CELLULARPHONE ACCESS TO EMERGENCY AID AND TRAVELER INFORMATION THE PILOT PROGRAM PROJECT NORTHSTAR IS TO BEGIN EARLY NEXT MONTH IN 60 AVIS RENTAL CARS AT NEW YORK'S LAGUARDIA AIRPORT AVIS WILL CONTRIBUTE CARS WHILE NYNEX WILL PROVIDE TELEPHONE EQUIPMENT AND SERVICE A PROJECT SPOKESMAN DECLINED TO GIVE THE COST OF THE PROGRAM BY PUSHING A BUTTON ON A CELLULAR PHONE CUSTOMERS WILL REACH SERVICE REPRESENTATIVES WHO HELP WITH PROBLEMS SUCH AS FINDING A BANK GAS STATION OR HOSPITAL ABOUT HALF THE VEHICLES ALSO WILL HAVE COMPUTERIZED TRACKING DEVICES THAT PINPOINT THE CALLER'S LOCATION THE PHONES IN THOSE CARS WILL HAVE A BUTTON THAT AUTOMATICALLY DIALS LAWENFORCEMENT OFFICIALS WHO ALSO CAN TRACK A DRIVER'S LOCATION AVIS CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOSEPH V VITTORIA SAID IF THE PROGRAM IS SUCCESSFUL THE CARRENTAL COMPANY MAY EXTEND IT TO SOUTHERN FLORIDA AND OTHER US METROPOLITAN AREAS WHERE TOURIST AND BUSINESSTRAVELER SECURITY HAS BEEN AN ISSUE 9403310103 940331 ECONOMY US LIFTS CURBS ON EXPORTING OF COMPUTERS MOVE FOR HIGHTECH GOODS TO FORMERSOVIET BLOC MARKS THE END OF ERA BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US LIFTED RESTRICTIONS ON EXPORTS OF TELECOMMUNICATIONS COMPUTERS AND OTHER HIGHTECH GOODS TO CHINA AND THE FORMER SOVIET BLOC AS ONE OF THE LAST RELICS OF THE COLD WAR VANISHES TODAY WITHOUT A REPLACEMENT MEMBER COUNTRIES OF THE COORDINATING COMMITTEE FOR MULTILATERAL EXPORT CONTROLS OR COCOM A GROUP CRAFTED IN 1949 TO CURB THE EXPORT OF POTENTIALLY DANGEROUS TECHNOLOGIES TO THE SOVIET UNION AND OTHER COMMUNIST POWERS ARE EXPECTED TO REPLACE THEIR OLD ORGANIZATION WITH A PATCHWORK OF AGREEMENTS TO CONTINUE WORKING TOGETHER BUT THERE WILL BE NO SUCCESSOR INSTITUTION TO CARRY OUT COCOM'S MANDATE WE'VE TALKED ABOUT LOTS OF ENDS TO THE COLD WAR BUT THIS IS THE DEFINITIVE END SAID PAUL FREEDENBERG A FORMER TOP COMMERCE DEPARTMENT OFFICIAL WHO OVERSAW EXPORT CONTROLS DURING THE REAGAN ADMINISTRATION IT'S A NEW ERA US OFFICIALS SAID THE EASED RESTRICTIONS WON'T INCREASE NATIONALSECURITY RISKS BECAUSE MOST OF THE GOODS ARE ALREADY AVAILABLE INTERNATIONALLY AND THERE WILL STILL BE CURBS ON EXPORTS THAT COULD BE USED FOR MILITARY PURPOSES HOWEVER THERE'S SOME CONCERN THAT EASING RESTRICTIONS ON TRADE WITH CHINA WILL SEND A SIGNAL THAT THE US IS RETREATING FROM ITS EFFORT TO EMPLOY TRADE POLICY AS A WAY OF PRODDING CHINA TO IMPROVE ITS HUMAN RIGHTS BEHAVIOR OFFICIALS IN THIS AREA OF EXPORT CONTROLS HAVE GONE SO FAR AS TO COIN A NAME FOR THIS NEW PERIOD PARTLY IN JEST NOCOM MORE SERIOUSLY HOWEVER NONPROLIFERATION EXPERTS WARNED THAT THE EASED RESTRICTIONS COULD COME BACK TO HAUNT THE US THE CLINTON ADMINISTRATION YESTERDAY GREETED THE SOCALLED NOCOM WORLD BY REMOVING INDIVIDUAL EXPORTLICENSING REQUIREMENTS FOR ALMOST ALL CIVILIAN TELECOMMUNICATION EQUIPMENT AND COMPUTERS THAT OPERATE WITH SPEEDS UP TO 1000 MTOPS OR MILLION THEORETICAL OPERATIONS PER SECOND FOR DELIVERY TO CIVILIAN END USERS AND MOST COUNTRIES PREVIOUSLY RESTRICTED BY COCOM ITS ONE EXCEPTION NORTH KOREA WHICH THE US SUSPECTS IS BUILDING NUCLEAR WEAPONS TECHNICALLY CHINA AND THE FORMERSOVIET BLOC COUNTRIES HAVE JOINED A LONG LIST OF NATIONS THE US DESIGNATES AS MEMBERS OF THE FREE WORLD THE CLINTON ADMINISTRATION IS KEEPING CONTROLS ON CERTAIN ENCRYPTION TECHNOLOGY AND RADIO TECHNOLOGIES OFTEN USED FOR MILITARY PURPOSES WITH THE ENDING OF THE COLD WAR COCOM MEMBERS HAVE BEEN RELAXING THEIR USUAL EXPORT RESTRICTIONS AND FOCUSING MORE ATTENTION ON EXPORTS TO SUCH COUNTRIES AS LIBYA NORTH KOREA AND IRAQ COCOM INCLUDES JAPAN AUSTRALIA AND NORTH ATLANTIC TREATY ORGANIZATION MEMBERS EXCEPT ICELAND YESTERDAY'S ACTION WAS ANNOUNCED BY NATIONAL ECONOMIC COUNCIL CHAIRMAN ROBERT RUBIN AT A COMMERCE DEPARTMENT EXPORTCONTROLS CONFERENCE MR RUBIN SAID THAT COCOM MEMBERS WILL CONTINUE WORKING TO ESTABLISH A NEW SYSTEM OF EXPORT CONTROLS SENSITIVE TECHNOLOGY WILL BE COVERED SEPARATELY BY RESTRICTIONS ESTABLISHED TO CURB THE PROLIFERATION OF NUCLEAR CHEMICAL OR BIOLOGICAL WEAPONS TECHNOLOGY HOWEVER NONPROLIFERATION EXPERTS EXPRESSED CONCERN THAT THE EASING OF US CONTROLS COUPLED WITH THE DEMISE OF COCOM WOULD OPEN THE FLOODGATES FOR THE SHIPMENT OF POTENTIALLY DANGEROUS TECHNOLOGIES TO ROGUE COUNTRIES HENRY SOKOLSKI A DEPUTY FOR NONPROLIFERATION POLICY AT THE DEFENSE DEPARTMENT DURING THE BUSH ADMINISTRATION SAID THE WORLD WILL HAVE LITTLE BETTER THAN A PLACEBO IN PLACE TO RESTRICT THE SALE OF SENSITIVE GOODS FOR MILITARY PURPOSES MR SOKOLSKI SAID WE ARE MOVING TO A LOOSE MORE RELAXED EXPORT CONTROL WORLD ONE THAT WOULD FLY IN THE FACE OF OUR EXPERIENCE WITH IRAQ WHICH IN THE GULF WAR USED MILITARY TECHNOLOGY BUILT WITH WESTERN GOODS BUT THE US SEEMS AT LEAST IN THIS CASE TO HAVE BEEN SWAYED BY CORPORATE INTERESTS US CORPORATE OFFICIALS HAVE WORRIED THAT EVEN IN A NOCOM WORLD THEY WOULD CONTINUE TO FACE THE TOUGH RESTRICTIONS COCOM HAD LAID OUT WHILE OTHER COUNTRIES WOULD LIFT THEIR RULES MAKING IT EASIER FOR AMERICA'S FOREIGN COMPETITORS TO SELL GOODS TO BIG MARKETS SUCH AS RUSSIA AND CHINA AS A RESULT MANY INDUSTRY OFFICIALS HAILED YESTERDAY'S ANNOUNCEMENT CHRIS PADILLA MANAGER OF GOVERNMENT AFFAIRS AT AMERICAN TELEPHONE & TELEGRAPH CO SAID THIS IS A HOME RUN FOR THE CLINTON ADMINISTRATION WE'RE PINCHING OURSELVES AT&T OFFICIALS SAID THE NEW RULES FREE UP TELECOMMUNICATIONS EXPORTS THAT THE COMPANY HAD BEEN TRYING TO SEND TO CHINA AND RUSSIA LAST FALL AT&T ESTIMATED THE CONTROLS WOULD COST THE COMPANY 500 MILLION IN TOTAL LOST SALES OVER THE NEXT THREE TO FIVE YEARS THE ANNOUNCEMENT MARKS AT LEAST ONE HIGH POINT IN PRESIDENT CLINTON'S ROCKY RELATIONSHIP WITH A HIGHTECH COMMUNITY THAT SUPPORTED HIM HEARTILY DURING HIS PRESIDENTIAL CAMPAIGN BUT SOON BECAME DISILLUSIONED WITH WHAT IT CONSIDERED DELAYS IN FULFILLING CAMPAIGN PROMISES ALONG WITH TELECOMMUNICATIONS COMPANIES MAJOR COMPUTER MANUFACTURERS HAVE LOBBIED FOR THE EASING OF RESTRICTIONS 9403310102 940331 WHO'S NEWS TIME WARNER CHIEF LEVIN EARNED A BONUS OF 4 MILLION IN '93 NEW YORK TIME WARNER INC'S CHIEF EXECUTIVE GERALD M LEVIN EARNED A 4 MILLION BONUS IN 1993 A 60 INCREASE FROM THE 25 MILLION BONUS HE RECEIVED A YEAR EARLIER ACCORDING TO THE COMPANY'S LATEST PROXY STATEMENT MR LEVIN EARNED A TOTAL 53 MILLION IN CASH COMPENSATION IN 1993 COMPARED WITH ABOUT 38 MILLION A YEAR IN 1992 IN ADDITION MR LEVIN RECEIVED OPTIONS FOR ONE MILLION COMMON SHARES OF TIME WARNER STOCK EXERCISABLE AT PRICES FROM 3219 TO 4829 A SHARE THOSE OPTIONS COULD BE WORTH AS MUCH AS 142 MILLION TO 451 MILLION IF THE COMPANY'S STOCK RISES 5 TO 10 ANNUALLY OVER THE 10YEAR TERM OF THE OPTIONS ACCORDING TO THE PROXY A SPOKESMAN FOR TIME WARNER NOTED THAT THE OPTIONS WERE DESIGNED SPECIFICALLY TO BE AN INCENTIVE FOR MR LEVIN'S TENURE AND ARE TIED TO THE PERFORMANCE OF THE COMPANY'S STOCK IN ADDITION TIME WARNER'S OTHER TOP FIVE EXECUTIVES RECEIVED INCREASED BONUSES IN 1993 INCLUDING PETER HAJE EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL MR HAJE RECEIVED A 11 MILLION BONUS A 13 GAIN FROM THE YEAREARLIER BONUS AS WELL AS 675000 IN SALARY THE SAME SALARY AS IN 1992 THE PROXY ATTRIBUTED THE INCREASE IN BONUSES TO THE COMPANY'S SUCCESS IN MEETING ITS FINANCIAL STRATEGIC AND TECHNOLOGICAL GOALS FOR THE YEAR 9403310101 940331 TECHNOLOGY & HEALTH NINTENDO'S PROJECT REALITY GAME SYSTEM GETS LIFT IN ACCORD WITH WMS INDUSTRIES BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL IN AN EARLY BET ON WHICH NEW MACHINE WILL DOMINATE THE VIDEOGAME INDUSTRY A LEADING GAME PRODUCER HAS CAST ITS LOT WITH NINTENDO OF AMERICA INC BY AGREEING TO MAKE TITLES ESPECIALLY FOR NINTENDO'S PROJECT REALITY SYSTEM THE PRODUCER WMS INDUSTRIES INC AND THE UNIT OF JAPAN'S NINTENDO CO SAID THEY JOINTLY FORMED A COMPANY CALLED WILLIAMS/NINTENDO INC TO MARKET GAMES EXCLUSIVELY FOR PROJECT REALITY AND TO SPLIT THE PROFITS WMS WILL MAKE THE GAMES INITIALLY FOR PROJECT REALITY MACHINES IN ARCADES AND THEN TURN THEM OVER TO THE NEW JOINT COMPANY FOR HOME DISTRIBUTION LATER THIS YEAR WMS WILL DISTRIBUTE THE ARCADE VERSION OF KILLER INSTINCT A FUTURISTIC THREEDIMENSIONAL FIGHTING GAME DEVELOPED FOR NINTENDO BY RARE LTD THAT WILL BE THE FIRST ON PROJECT REALITY PROJECT REALITY WHICH IS SCHEDULED TO COME OUT IN ARCADES THIS FALL IN ADVANCE OF A LAUNCH IN HOMES NEXT YEAR IS BEING DEVELOPED BY NINTENDO AND SILICON GRAPHICS INC WITH POWERFUL 64BIT COMPUTING CAPABILITIES CURRENT BESTSELLING PLAYERS USE 16BIT TECHNOLOGY THE DEAL IS SEEN BY ANALYSTS AS A COUP FOR NINTENDO BECAUSE WMS HAS CREATED BLOCKBUSTER HITS SUCH AS MORTAL KOMBAT AND NBA JAM WHICH HAVE SOLD IN THE MILLIONS IT LOOKS LIKE WMS IS ALMOST MAKING A JUDGMENT THAT NINTENDO IS GOING TO BE A FAROUT LEADER AGAIN IN THE HOME MARKET SAID LEE ISGUR AN ANALYST FOR VOLPE WELTY & CO IN SAN FRANCISCO WMS'S MOVE IS A BIG BLOW TO ITS CURRENT PARTNER ACCLAIM ENTERTAINMENT INC WHOSE STOCK PLUNGED 28 YESTERDAY AS WELL AS A SETBACK FOR NINTENDO'S CHIEF RIVAL SEGA OF AMERICA INC THE UNIT OF JAPAN'S SEGA ENTERPRISES LTD THAT'S DEVELOPING A RIVAL NEW MACHINE CALLED SATURN WITH HITACHI LTD AND YAMAHA CORP SMALLER COMPETITORS LIKE 3DO CO AND ATARI CORP ALSO ARE SEEN AS BEING LEFT BEHIND WMS'S PRESIDENT NEIL NICASTRO SAID HIS COMPANY SELECTED PROJECT REALITY AFTER EXAMINING ALTERNATIVES FROM THE NINTENDO COMPETITORS WE HAVE FOUND FROM A TECHNICAL STANDPOINT A SYSTEM THAT IS MORE POWERFUL THAN ANYTHING ELSE DISCUSSED OR CONTEMPLATED MR NICASTRO SAID IT HAS THE POWER OF AN ARCADE GAME FOR 5000 AND WILL BE SELLING TO CONSUMERS FOR 250 MR NICASTRO SAID THE NINTENDO AGREEMENT DOESN'T PREVENT HIS COMPANY FROM MAKING GAMES FOR COMPETING PLAYERS SUCH AS SEGA IF PROJECT REALITY DOESN'T SELL AS WELL AS EXPECTED HE SAID WMS COULD PRODUCE GAMES FOR SOMEONE ELSE BY TEAMING UP WITH NINTENDO WMS IS SEVERING A FIVEYEAROLD TIE WITH ACCLAIM OF OYSTER BAY NY TO DISTRIBUTE ITS GAMES INTO THE HOME MARKET SINCE ACCLAIM HAS BENEFITTED GREATLY FROM THE STRENGTH OF MORTAL KOMBAT AND NBA JAM SALES NERVOUS INVESTORS HAMMERED ACCLAIM'S STOCK DRIVING IT DOWN 5375 TO 1375 IN NASDAQ STOCK MARKET TRADING ACCLAIM OFFICIALS SAID INVESTORS APPEARED TO HAVE OVERREACTED TO THE ANNOUNCEMENT BECAUSE THEY HAD INDICATED MONTHS AGO THAT ACCLAIM'S DEAL FOR FIRST RIGHT OF REFUSAL ON DISTRIBUTION OF WMS GAMES WAS LIKELY NOT TO BE RENEWED WHEN THE CONTRACT EXPIRES IN MARCH 1995 GREGORY FISCHBACH ACCLAIM'S COCHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID ACCLAIM EXPECTS REVENUE WILL CONTINUE TO BE STRONG ON SALES OF ITS OWN GAMES NINTENDO'S COMPETITORS ALSO TOOK A MUTED VIEW TO THE NINTENDOWMS ALLIANCE SEGA OFFICIALS FOR INSTANCE SAID THEY DON'T THINK THE DEAL PRECLUDES THEIR CONTINUING TO GET WMSMADE GAMES SINCE THEIR COMPANY CONTROLS NEARLY TWOTHIRDS OF THE MOST CRUCIAL MARKET FOR 16BIT PLAYER SALES WE THINK WMS IS A SMART COMPANY AND WE DON'T THINK THEY WILL IGNORE THE REST OF THE MARKET SAID WILLIAM WHITE SEGA OF AMERICA'S MARKETING VICE PRESIDENT NINTENDO IS BETTING ON PROJECT REALITY TO REGAIN ITS ONCEDOMINANT MARKET POSITION HAVING OWNED A NEARMONOPOLY ON THE US'S 6 BILLION VIDEOGAME MARKET FIVE YEARS AGO NINTENDO HAS SEEN ITS SHARE ERODE STEADILY UNDER THE ADVANCES OF SEGA WHOSE RIVAL 16BIT GENESIS PLAYER BEGAN OUTSELLING NINTENDO'S 16BIT SUPER NINTENDO ENTERTAINMENT SYSTEM LAST YEAR 9403310100 940331 WHO'S NEWS ALPHABETA TECHNOLOGY INC ALPHABETA TECHNOLOGY INC WORCESTER MASS BERNARD CANAVAN WAS ELECTED A DIRECTOR OF THIS PHARMACEUTICAL PRODUCTS CONCERN EXPANDING THE BOARD MEMBERSHIP TO EIGHT DR CANAVAN RETIRED THIS YEAR AS PRESIDENT AND CHIEF OPERATING OFFICER OF AMERICAN HOME PRODUCTS CORP 9403310098 940331 WHO'S NEWS FLIGHT INTERNATIONAL NAMES DAVID SANDLIN CHAIRMAN PRESIDENT NEWPORT NEWS VA FLIGHT INTERNATIONAL GROUP INC NAMED DAVID E SANDLIN A FORMER PRESIDENT OF ONE OF ITS UNITS AS CHAIRMAN AND PRESIDENT FOLLOWING THE RESIGNATION OF RICHARD L FRY FLIGHT INTERNATIONAL A PROVIDER OF AVIATION SERVICES IS OPERATING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE A SPOKESWOMAN SAID THE COMPANY EXPECTS TO FILE ITS REORGANIZATION PLAN IN THE US BANKRUPTCY COURT IN NORFOLK VA IN JUNE THE SPOKESWOMAN DIDN'T GIVE A REASON WHY MR FRY PRESIDENT SINCE 1992 AND CHAIRMAN SINCE FEBRUARY 1993 RESIGNED EFFECTIVE MARCH 30 FOR THE FISCAL YEAR ENDING APRIL 30 1993 FLIGHT INTERNATIONAL HAD 248 MILLION IN TOTAL REVENUE AND A NET LOSS OF 7 MILLION 9403310097 940331 LETTERS TO THE EDITOR FREE CONGRESS PAC IN REGARD TO YOUR MARCH 11 EDITORIAL MINORITY DIVERSITY CONCERNING THE RESULTS OF THE ELECTION IN THE 25TH CONGRESSIONAL DISTRICT OF TEXAS YOU SAID SUPPORT TO BEVERLEY CLARK WAS GIVEN BY THE FREE CONGRESS FOUNDATION THIS SUPPORT WAS IN FACT CONTRIBUTED BY THE FREE CONGRESS POLITICAL ACTION COMMITTEE PLEASE BE ADVISED THAT THE FREE CONGRESS FOUNDATION IS A 501C 3 RESEARCH AND EDUCATIONAL ORGANIZATION WHICH DOES NOT GET INVOLVED IN PARTISAN POLITICS THE FREE CONGRESS POLITICAL ACTION COMMITTEE MADE THE SUBJECT CONTRIBUTION 9403310096 940331 BUSINESS BRIEF GAO REPORT FINDS INSIDER PROBLEMS AT BANKS OFTEN CONTRIBUTE TO FAILURE WASHINGTON PROBLEMS WITH INSIDER TRANSACTIONS AT BANKS ARE PREVALENT AND FREQUENTLY CONTRIBUTE TO BANK FAILURES THE GENERAL ACCOUNTING OFFICE SAID THE CONGRESSIONAL WATCHDOG AGENCY SAID ITS ANALYSIS OF THE 286 BANKS THAT FAILED IN 1990 AND 1991 SHOWED THAT INSIDER PROBLEMS WERE CONTRIBUTING FACTORS IN 175 OF THE FAILURES IN 74 OF THESE CASES IT SAID INSIDER PROBLEMS WERE THE MAIN CAUSE OF FAILURE FOR THE BANK INSURANCE FUND THE FEDERAL AGENCY THAT INSURES BANK DEPOSITS LOSSES ASSOCIATED WITH THE 175 FAILED BANKS TOTALED 54 BILLION THE GAO ESTIMATED INSIDER PROBLEMS CONSIST OF FRAUD BY INSIDERS SUCH AS BANK OFFICERS AND DIRECTORS INSIDER ABUSE AND LOAN LOSSES TO INSIDERS FRAUD A CRIMINAL ACT WAS FOUND BY FEDERAL DEPOSIT INSURANCE CORP INVESTIGATORS IN 36 OF THE 286 BANK FAILURES ANALYZED THE GAO SAID INSIDER ABUSE WHICH FALLS SHORT OF FRAUD AND OCCURS WHEN AN INSIDER RECEIVES PERSONAL BENEFIT FROM SOME ACTION TAKEN IN CONNECTION WITH HIS OR HER ROLE AT THE BANK WAS IDENTIFIED 41 OF THE TIME LOAN LOSSES TO INSIDERS WERE FOUND IN 28 OF THESE FAILURES IN REVIEWING 13 BANKS THAT ARE STILL OPEN THE GAO SAID THAT 10 HAD BEEN CITED FOR INSIDER VIOLATIONS AS THEY HAD BEEN IN THE FAILED BANKS PREFERENTIAL INTEREST RATES ON LOANS TO INSIDERS AND INSIDER LOANS THAT EXCEEDED LEGAL LENDING LIMITS WERE THE MOST FREQUENTLY CITED INSIDER VIOLATIONS THE AGENCY SAID THE GAO ALSO SAID THAT INSIDER PROBLEMS IDENTIFIED BY FEDERAL BANK EXAMINERS OFTEN WENT UNCORRECTED FROM ONE EXAMINATION TO THE NEXT THE GAO WHICH CONDUCTED ITS INSIDER STUDY IN RESPONSE TO SEPARATE REQUESTS FROM THE CHAIRMEN OF THE HOUSE AND SENATE BANKING COMMITTEES RECOMMENDED THAT FEDERAL BANK REGULATORS INCLUDE A THOROUGH REVIEW OF INSIDER ACTIVITIES IN THEIR NEXT EXAMINATION OF EACH BANK UNDER THEIR JURISDICTIONS IT URGED REGULATORS TO ENSURE THAT BANK DIRECTORS UNDERSTAND THEIR RESPONSIBILITIES AND TAKE CORRECTIVE ACTION WHERE APPROPRIATE THE OFFICE OF THE COMPTROLLER OF THE CURRENCY SAID IT AGREED WITH THE GAO'S RECOMMENDATIONS AND PLANS TO ACT ACCORDINGLY HOWEVER THE FDIC AND THE FEDERAL RESERVE WHILE IN SUBSTANTIAL AGREEMENT WITH THE GAO'S REPORT SAID THEY ALREADY HAVE POLICIES IN PLACE TO ADDRESS THESE RECOMMENDATIONS THE GAO SAID BUT THE GAO REITERATED THAT THERE ARE ADDITIONAL STEPS THESE TWO AGENCIES CAN TAKE 9403310095 940331 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG IN THE 1980S AS THE LASER PRINTER GAINED POPULARITY THE BUSINESS WORLD WAS HIT BY A PHENOMENON CALLED RANSOM NOTES COMPUTER USERS WERE THRILLED THAT THEIR NEW PRINTERS COULD PRODUCE PROFESSIONALLOOKING OUTPUT WITH MULTIPLE TYPEFACES IN MULTIPLE SIZES AND STYLES SO THEY STARTED SENDING OUT LETTERS MEMOS AND REPORTS COMPOSED OF A DISCORDANT MELANGE OF FONTS THAT RESEMBLED THE RANSOM NOTES THAT KIDNAPPERS AT LEAST IN THE MOVIES CONSTRUCT FROM MISMATCHED CHARACTERS CLIPPED FROM A NEWSPAPER THE RANSOMNOTE EFFECT HAS SUBSIDED GREATLY AS PEOPLE HAVE GOTTEN USED TO LASER PRINTING BUT I FEAR WE SOON MAY SEE A SIMILAR ESTHETIC DEBACLE THAT MIGHT BE CALLED THE COLORING BOOK EFFECT THAT'S BECAUSE BUSINESSQUALITY COLOR PRINTERS HAVE FINALLY DROPPED TO A WIDELY AFFORDABLE PRICE ABOUT THE SAME AS A LOWEND MONOCHROME LASER AND IT MAY BE IMPOSSIBLE FOR THE ARTISTICALLY IMPAIRED TO RESIST CHURNING OUT BORING REPORTS FULL OF RED TEXT AND GREEN TABLES THAT WOULD MAKE USA TODAY LOOK LIKE A TAX FORM BY COMPARISON DESPITE THIS CHILLING PROSPECT THE COMING OF QUALITY COLOR PRINTING AS A MAINSTREAM TECHNOLOGY FOR OFFICES AND HOMES IS PROBABLY A GOOD THING AFTER ALL THE WORLD'S IN COLOR EVEN THIS GRAY NEWSPAPER OCCASIONALLY BURSTS INTO BRIGHTER HUES WITHIN CERTAIN ADS CHARTS GRAPHICS AND KEY TEXT PASSAGES CAN BE MADE MORE UNDERSTANDABLE IN COLOR IT ONCE COST THOUSANDS OF DOLLARS FOR A PRINTER THAT COULD DO A DECENT JOB IN COLOR AND YOU OFTEN HAD TO USE SPECIAL PAPER NOW YOU CAN GET ONE FOR AROUND 600 AND IT CAN USE PLAIN OLD OFFICE PAPER JUST LIKE A COPYING MACHINE WITH THAT IN MIND I RECENTLY TESTED TWO FIRSTRATE 600 COLOR PRINTERS CANON'S SIXMONTHOLD BJC600 AND HEWLETTPACKARD'S MONTHOLD DESKJET 560C EACH USES A PRINTING TECHNOLOGY CALLED INKJET IN WHICH A FINE MIST OF INK DROPLETS IS SPRAYED ON THE PAGE BY TINY NOZZLES AND EACH COMES IN VERSIONS FOR BOTH IBMCOMPATIBLE AND APPLE MACINTOSH COMPUTERS THE MAC VERSION OF THE DESKJET IS CALLED THE DESKWRITER AND THE MAC VERSION OF THE CANON MACHINE IS SOLD UNDER APPLE'S LABEL AS THE COLOR STYLEWRITER PRO I TESTED EACH WITH STRAIGHT TEXT DOCUMENTS IN BLACK AND SEVERAL COLORS WITH A CHART CREATED IN A SPREADSHEET PROGRAM AND WITH SOME ELABORATE PICTURES AND STORIES CREATED IN SEVERAL POPULAR CHILDREN'S PROGRAMS I FOUND THAT WHILE EACH MACHINE HAS ITS STRENGTHS AND WEAKNESSES BOTH ARE VERY GOOD I PREFERRED THE OVERALL DESIGN OF THE CANON AND LIKED ITS COLOR OUTPUT A BIT BETTER BUT I GIVE THE EDGE TO THE HEWLETTPACKARD IN PRINTING MONOCHROME TEXT AND IN OVERALL SPEED INKJET PRINTERS TO MY EYE FALL SHORT OF LASERPRINTER QUALITY BUT THERE ARE NO MODESTLY PRICED COLOR LASERS BOTH THE PRINTERS I TESTED ARE VERY CLOSE TO LASER QUALITY ON MONOCHROME TEXT DOCUMENTS AND THEIR COLOR OUTPUT WAS QUITE PLEASING IF LESS THAN PERFECT IN A BUSINESS THEY COULD PRODUCE DOCUMENTS SUITABLE FOR MOST COMMON USES IN A HOME OR HOME OFFICE THEY WOULD DO THAT AND ALSO CHURN OUT ENOUGH GREATLOOKING KIDS' ART TO PAPER EVERY REFRIGERATOR DOOR IN THE LAND NEITHER ONE IS GOOD ENOUGH FOR SERIOUS PROFESSIONAL COLOR ART OR GRAPHICS WORK THE CANON IS NEWLY DESIGNED TO CHALLENGE HEWLETTPACKARD'S DOMINANCE OF THE INKJET MARKET IT FEATURES A SLEEK COMPACT FORM WITH A WEIGHT OF JUST UNDER 10 POUNDS A WIDTH OF JUST 14 INCHES AND A DEPTH OF ABOUT EIGHT INCHES ALTHOUGH EXTENDING A SLIDING TRAY TO CATCH PAPER AS IT COMES OUT ROUGHLY DOUBLES THE DEPTH THERE'S A SEPARATE INK CARTRIDGE FOR BLACK AND FOR EACH OF THE THREE PRIMARY COLORS THE PRINTER USES TO CREATE ITS PALETTE OF HUES THAT MEANS YOU DON'T HAVE TO REPLACE ALL THE COLORS EACH TIME JUST ONE SHADE OF INK RUNS OUT REPLACEMENT CARTRIDGES ARE PRICED AT AROUND 8 EACH THE INK ALSO IS A NEW FASTDRYING VARIETY WHICH HELPS REDUCE BLEEDING THE EFFECT IN WHICH ONE COLOR OOZES INTO ANOTHER ON THE PAGE THE CANON'S PRINT RESOLUTION IS 360 DOTS PER INCH WHICH IS BETTER THAN LOWEND MONOCHROME LASERS EVERY TEST DOCUMENT CAME OUT LOOKING VERY GOOD MY ONLY COMPLAINT ABOUT THE CANON IS THAT IT WAS QUITE SLOW THOUGH THE SPEED MAY IMPROVE AS THE COMPANY REVISES THE SOFTWARE CALLED A DRIVER THAT CONTROLS THE MACHINE THE HP 560C IS AN OLDER DESIGN AND IT SHOWS IT'S 50 HEAVIER THAN THE CANON AND IS NEARLY 18 INCHES WIDE BY 15 INCHES DEEP CONNECTIONS FOR THE POWER CORD AND COMPUTER CABLE ARE INCONVENIENTLY PLACED AND IT USES A BULKY TRANSFORMER THERE'S A SEPARATE CARTRIDGE FOR BLACK INK BUT THE PRIMARY INK COLORS ARE HOUSED TOGETHER IN A SINGLE CARTRIDGE SO YOU HAVE TO REPLACE ALL OF THEM WHEN ONE IS USED UP REPLACEMENT CARTRIDGES COST ABOUT 20 FOR BLACK AND 30 FOR COLOR BUT HEWLETTPACKARD CONCERNED ABOUT CANON'S CHALLENGE HAS ENHANCED THIS WARHORSE WITH NEW FEATURES IN PARTICULAR THE 560C PRINTS BLACK AND WHITE DOCUMENTS BUT NOT COLOR ONES AT 600 DOTS PER INCH JUST LIKE A HIGHEND LASER THE RESULT ON THE TEST DOCUMENTS WAS BETTER PLAINTEXT PRINTING THAN THE CANON ACHIEVED THE HP NOW ALSO USES SPECIAL SOFTWARE CALLED COLORSMART WHICH AUTOMATICALLY OPTIMIZES COLOR SETTINGS THIS RESULTED IN VERY NICE COLOR OUTPUT BUT AT A RESOLUTION OF JUST 300 DOTS PER INCH TO MY EYE IT DIDN'T QUITE MATCH THAT OF THE CANON HOWEVER THE HEWLETTPACKARD RAN FASTER IN MY TESTS THE TWO PRINTERS ARE PRETTY COMPARABLE AND YOU WON'T GO WRONG WITH EITHER BUT IF YOU BUY ONE CONTROL YOURSELF THE WORLD DOESN'T NEED MORE PURPLE PROSE 9403310093 940331 TRUCKERS LIFT RATES FOR THE LONG HAUL CITING SURGING TRAFFIC AND RISING COSTS BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL SOME MAJOR LONGHAUL TRUCKING COMPANIES CITING SURGING TRAFFIC AND RISING WAGES FOR A SCARCITY OF NONUNION DRIVERS PLAN TO BOOST FREIGHT RATES BY 4 OR MORE LEADING THE MOVE IS WERNER ENTERPRISES INC THE OMAHA NEB COMPANY PLANS TO RAISE ITS FREIGHT RATES AN UNSPECIFIED AMOUNT TO COVER AN 8 HIKE IN ITS DRIVER PAY WHICH IS EFFECTIVE MAY 1 ECONOMIC AND COMPETITIVE FORCES THE COMPANY SAID ARE MAKING IT INCREASINGLY MORE DIFFICULT TO ATTRACT AND RETAIN SKILLED DRIVERS FOR ONTIME DELIVERY SCHNEIDER NATIONAL INC ANOTHER HAULER OF FREIGHT IN TRUCKLOADS RAISED RATES TO SOME CUSTOMERS ABOUT 4 IN JANUARY THE COMPANY NOW PLANS ANOTHER RATE HIKE TO COVER HIGHER DRIVER COSTS THE CLOSELY HELD GREEN BAY WIS CARRIER IS SLATING THE LARGEST RATE INCREASES FOR THOSE CUSTOMERS THAT HABITUALLY DELAY DRIVERS AT SHIPPING DOCKS CITING HIGHER COSTS TO ATTRACT TRAIN AND KEEP DRIVERS CRST INTERNATIONAL INC IN CEDAR RAPIDS IOWA PLANS TO BOOST FREIGHT RATES 3 THIS SPRING AND ANOTHER 2 TO 3 IN THE FALL THESE LABOR COSTS ARE RISING FOR TRUCKLOAD HAULERS JUST AS DEMAND FOR THEIR SERVICES IS RUNNING 6 AHEAD OF YEARAGO LEVELS THE FIFTH CONSECUTIVE YEAR OF GROWING FREIGHT TRAFFIC IT SEEMS MORE LIKELY THIS YEAR THAT TRUCK COMPANIES WILL HAVE BETTER SUCCESS AT GETTING AND KEEPING PRICE INCREASES THAN IN ANY YEAR SINCE TRUCKING WAS DEREGULATED IN 1980 SAID DOUG ROCKEL AN ANALYST AT MERRILL LYNCH CAPITAL MARKETS THAT SITUATION COULD CONTRIBUTE TO PRICE INCREASES IN FOOD CLOTHING AND INDUSTRIAL GOODS TRUCK DISTRIBUTION REPRESENTS A SIGNIFICANT COST FOR VARIOUS COMPANIES AT RETAIL AND WHOLESALE LEVELS AND THOSE COMPANIES WILL SURELY ATTEMPT TO PASS THOSE COST INCREASES ON IF THE MARKET WILL BEAR IT SAID ALLEN SINAI CHIEF ECONOMIST AT LEHMAN BROTHERS INC IN NEW YORK RATE HIKES BY TRUCKLOAD COMPANIES ARE ONE OF THOSE EARLY WARNING SIGNS OF POTENTIALLY HIGHER INFLATION DOWN THE ROAD HE SAID ROBERT DELANEY EXECUTIVE VICE PRESIDENT OF CASS LOGISTICS INC A ST LOUIS SHIPPING INFORMATION COMPANY DISAGREED HE SAID THE RATE INCREASES WILL ALLOW TRUCK COMPANIES TO ATTRACT BETTER DRIVERS AND PROVIDE MORE TIMELY SERVICE ALLOWING MANUFACTURERS TO REDUCE THEIR INVESTMENT IN INVENTORIES DECLINING INVENTORIES WILL COUNTERACT THE HIGHER SHORTTERM INCREASES IN TRANSPORTATION COSTS HE SAID OTHER SECTORS IN THE TRANSPORTATION INDUSTRY EXPERIENCING THE SAME COSTANDDEMAND PRESSURES ALSO ARE LIFTING PRICES EVEN THE UNIONIZED LESSTHANTRUCKLOAD CARRIERS INCREASED RATES 45 ON AVERAGE IN JANUARY ANALYSTS EXPECT THESE CARRIERS TO INCUR ADDITIONAL WAGE AND BENEFIT COSTS AFTER THEIR THREEYEAR LABOR CONTRACT WITH THE TEAMSTERS UNION EXPIRES TODAY RAILROADS TOO HAVE BOOSTED SOME RATES ON THEIR SHIPMENTS OF TRUCK TRAILERS AND CONTAINERS ON FLATCARS TRUCKING FREIGHT RATES INCREASED MUCH SLOWER THAN THE RATE OF INFLATION OVER THE PAST 12 YEARS SAID MR DELANEY BUT THE OVERCAPACITY IS GONE AND SHIPPERS ARE COMING TO UNDERSTAND THAT THEY WILL HAVE TO PAY HIGHER PRICES TO MAINTAIN AND IMPROVE TRUCK SERVICE MR DELANEY SAID HE EXPECTS TRUCKLOAD RATES TO RISE ABOUT TWO PERCENTAGE POINTS ABOVE THE RATE OF INFLATION DURING THE NEXT 12 MONTHS SHIPPERS ACCUSTOMED TO FREIGHT RATE REDUCTIONS ARE BRACING THEMSELVES FOR CHANGE THERE IS DEFINITELY A SHORTAGE OF DRIVERS SAID RICHARD HANSON DIRECTOR OF TRANSPORTATION AT THE KRAFT GENERAL FOODS DIVISION OF PHILIP MORRIS COS WE ARE MOVING OUR PRODUCT BUT WE'RE HAVING TO SPEND MORE TIME AND DEVOTE MORE MANPOWER TO SECURE TRUCKS HE ADDED THAT IN TODAY'S ENVIRONMENT TRUCKING COMPANIES ARE IN A MUCH BETTER POSITION TO EFFECT RATE INCREASES ABOUT 10 OF GEORGIAPACIFIC CORP'S SHIPMENTS OF BUILDING PRODUCTS ARE BEING DELAYED A DAY OR TWO BECAUSE OF A TRUCK SHORTAGE WITH THE ECONOMY HEATING UP THE LABOR FORCE THAT WOULD NORMALLY BECOME DRIVERS IS GOING INTO OTHER AREAS LIKE MANUFACTURING AND CONSTRUCTION WHERE THE QUALITY OF LIFE IS BETTER AND THEY CAN BE HOME AT NIGHT SAID MICHAEL BLACKWELL DIRECTOR OF TRANSPORTATION AND LOGISTICS AT THE ATLANTABASED COMPANY HE ADDED THAT GEORGIAPACIFIC IS RESIGNED TO PAYING TRUCK RATE INCREASES RANGING FROM 2 TO 5 THIS YEAR BECAUSE OF COSTS RELATED TO RECRUITING TRAINING AND RETAINING DRIVERS SHIPPERS WILL HAVE TO PAY MORE TO GET THE TRUCK SERVICE THEY DEMAND HE SAID IT'S SOMETHING WE CAN'T FIGHT TRUCKLOAD COMPANIES ARE HOPING THAT IMPROVED PAY RATES WILL ATTRACT MORE DRIVERS TO A JOB WITH A LONG LIST OF NEGATIVES FOR EXAMPLE NONUNION LONGHAUL DRIVERS ROUTINELY LIVE AND WORK IN THEIR TRUCKS FOR TWO OR THREE WEEKS AT A TIME MOREOVER THE DRIVERS THEMSELVES ARE INCREASINGLY COMPELLED TO UNLOAD THEIR TRAILERS AND SORT FREIGHT AT RECEIVING DOCKS LONGHAUL DRIVERS GET PAID ON THE BASIS OF MILES TRAVELED DELAYS THEREFORE ARE PARTICULARLY AGGRAVATING TO THEM QUESTIONS SURROUND PAY WE ALL HAVE A TREMENDOUS TURNOVER OF DRIVERS SAID MICHAEL STARNES CHAIRMAN AND CHIEF EXECUTIVE OF MS CARRIERS INC IN MEMPHIS HOWEVER MR STARNES ISN'T CONVINCED THAT THE DRIVER PAY RAISES SUCH AS THE TWOCENTSAMILE INCREASE ANNOUNCED BY WERNER ENTERPRISES ARE SUFFICIENT TO ATTRACT ENOUGH NEW DRIVERS THEY OUGHT TO MAKE 38000 TO 40000 A YEAR BUT THEY ARE MAKING 32000 TO 35000 FOR AN EXPERIENCED DRIVER WITH THREE YEARS BEHIND THE WHEEL HE SAID FOR NOW MR STARNES SAID HE IS WAITING AND WATCHING CUSTOMER REACTION TO THE RATE HIKES ANNOUNCED BY HIS RIVALS 9403310092 940331 COMMODITIES COPPER FUTURES CONTINUE TO DROP ON WEAKNESS IN STOCK BOND MARKETS AND SALES BY BIG INVESTORS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COPPER FUTURES PRICES CONTINUED TO PLUNGE ON WEAKNESS IN STOCK AND BOND MARKETS AND SELLING BY BIG INVESTORS AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR MAY DELIVERY WAS DOWN 29 CENTS TO 8645 CENTS A POUND SINCE MARCH 16 WHEN THE ACTIVELY TRADED MAY CONTRACT PEAKED AT 9320 CENTS A POUND THE CONTRACT PRICE HAS DECLINED MORE THAN 7 FOR THE FIRST TWO MONTHS OF 1994 COPPER FUTURES PRICES WERE ENERGIZED BY OPTIMISM ABOUT THE US ECONOMY AND BY A BROADBASED COMMODITY PRICE RALLY INCLUDING GAINS IN PRICES OF INDUSTRIAL METALS SUCH AS STEEL NICKEL AND ALUMINUM SPECULATION ABOUT A RETURN OF INFLATION ALSO HELPED TO PUSH PRICES HIGHER IN THE PAST TWO WEEKS HOWEVER COPPER HAS GIVEN BACK MOST OF ITS EARLYYEAR GAINS ANALYSTS SAID COPPER HAS FALLEN VICTIM TO LIQUIDATION PERVADING THE ENTIRE COMMODITIES BOARD SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THE EUPHORIA OF JANUARY AND FEBRUARY HAS BEEN DEFLATED ALSO DRAINING STRENGTH FROM THE COPPER MARKET YESTERDAY WAS SPECULATION AMONG TRADERS THAT WIDELY EXPECTED CHINESE PURCHASES OF COPPER WHICH HAD BEEN EXPECTED LATER THIS YEAR MAY NOT MATERIALIZE MOST TRADERS HAD EXPECTED CHINA USUALLY A BIG BUYER OF COPPER TO PURCHASE MORE THAN 100000 TONS OF THE INDUSTRIAL METAL BY THE END OF THE YEAR NOW HOWEVER TRADERS ARE SKEPTICAL THE ASIAN COUNTRY WILL BUY THAT MUCH MOREOVER COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY HAVE BEEN LARGE SELLERS OF COPPER FUTURES CONTRACTS IN RECENT WEEKS MR O'NEILL SAID THESE FUNDS HELPED TO PUSH PRICES UP BY BUYING CONTRACTS IN JANUARY AND FEBRUARY BUT LATELY HAVE BEEN LIQUIDATING THEIR POSITIONS HELPING TO EXERT ADDITIONAL DOWNWARD PRESSURE ON PRICES COPPER PRICES ON THE LONDON METAL EXCHANGE WHERE COPPER FUTURES ARE ALSO TRADED HAVE DECLINED EVEN MORE THAN US PRICES IN PART BECAUSE THE EUROPEAN COPPER MARKET LACKS THE RELATIVELY STRONG DEMAND FOR COPPER THAT HAS MATERIALIZED IN THE US FROM THIS COUNTRY'S HOUSING AND AUTOMOTIVE INDUSTRIES COPPER PRICES ARE STILL HIGHER THAN THEY WERE LATE LAST YEAR BEFORE INDUSTRIAL METALS PRICES BEGAN THEIR RALLY BUT INVESTOR CONFIDENCE IN THE US ECONOMY WILL NEED TO IMPROVE BEFORE THE RALLY CAN REGAIN ITS MOMENTUM ANALYSTS SAID ANY RESURGENCE IN THE US STOCK MARKET WOULD LIKELY BE INTERPRETED AS A POSITIVE SIGN BY COPPER TRADERS BUT CONTINUING WEAKNESS IN THE DOW JONES INDUSTRIAL AVERAGE WOULD PROBABLY CONTINUE TO ERODE PRICES ANALYSTS SAID IN OTHER COMMODITY MARKETS YESTERDAY ENERGY THE WEEKLY REPORT ON US PETROLEUM INVENTORIES BUOYED ENERGY FUTURES PRICES YESTERDAY IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE GASOLINE LED THE MOVES UP REFLECTING AN UNEXPECTEDLY LARGE DROP IN US GASOLINE STOCKS AS REPORTED BY THE AMERICAN PETROLEUM INSTITUTE THE STATISTICS RELEASED LATE TUESDAY SHOWED A DECLINE IN GASOLINE OF 5136000 BARRELS FOR THE WEEK ENDED MARCH 25 THAT HELPED APRIL GASOLINE OVERCOME A DOWNWARD TUG ON PRICES AND POST A 042 CENT A GALLON GAIN TO SETTLE AT 4482 CENTS MAY CRUDE OIL GAINED SIX CENTS A BARREL TO FINISH AT 1438 HEATING OIL FOR APRIL DELIVERY ROSE 044 CENT TO 4504 CENTS A GALLON SOME TRADERS SAID THE FACT THAT CRUDE PRICES HAVEN'T SLID AGAIN SINCE MONDAY'S 105 PLUNGE FOLLOWING THE MEETING BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES BODES WELL FOR OIL MARKETS OTHERS SAY THERE COULD BE FURTHER PRICE EROSION REFLECTING A CONTINUING OVERSUPPLY OF OIL GOING INTO A PERIOD OF SEASONALLY WEAK DEMAND LIVESTOCK AND MEATS HOG FUTURES PRICES CONTINUED THEIR SEASONAL SLUMP AS LARGE NUMBERS OF HOGS POURED INTO MEATPACKING PLANTS HOG PRICES USUALLY WEAKEN THIS TIME OF YEAR BECAUSE CONSUMERS TEND TO SHIFT THEIR PURCHASES TO BEEF AND AWAY FROM PORK IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE THE HOG CONTRACT FOR APRIL DELIVERY SLIPPED 035 CENT A POUND TO SETTLE AT 4625 CENTS PRICES TEND TO REBOUND BY JUNE WHEN THE FLOW OF MATURE HOGS TO MEATPACKING PLANTS TIGHTENS AS MIDWEST FARMERS BUSY THEMSELVES WITH SPRING PLANTING THIS HELPS EXPLAIN WHY THE HOG CONTRACT FOR JUNE DELIVERY IS TRADING HIGHER THAN THE APRIL CONTRACT THE JUNE CONTRACT SETTLED YESTERDAY AT 5250 CENTS A POUND DOWN 062 CENT CATTLE FUTURES PRICES SETTLED MOSTLY LOWER 9403310091 940331 GRANGES TO SELL STAKE IN MINE VANCOUVER BRITISH COLUMBIA GRANGES INC SAID IT AGREED TO SELL ITS 29 STAKE IN THE TROUT LAKE MINE TO MINORCO'S HUDSON BAY MINING & SMELTING CO FOR 33 MILLION CANADIAN DOLLARS US24 MILLION THE TROUT LAKE MINE PRODUCES COPPER ZINC GOLD AND SILVER IN NORTHERN MANITOBA THE SALE ALSO INCLUDES SEVEN EXPLORATION PROPERTIES IN NORTHERN MANITOBA HUDSON BAY MINING HAS A 44 STAKE IN THE TROUT LAKE PROJECT GRANGES A VANCOUVER BRITISH COLUMBIA MINING CONCERN SAID MANITOBA MINERAL RESOURCES LTD WHICH HOLDS 27 OF THE TROUT LAKE PROJECT HOLDS THE RIGHT OF FIRST REFUSAL ON GRANGES'S STAKE FOR 90 DAYS GRANGES SAID IT WOULD RECORD A GAIN OF ABOUT C12 MILLION FROM THE SALE 9403310090 940331 FIVE TOBACCO FIRMS SUED FOLLOWING NICOTINE REPORTS NEW ORLEANS A LAWSUIT WAS FILED AGAINST FIVE US TOBACCO COMPANIES INCLUDING PHILIP MORRIS COS AND RJR NABISCO HOLDINGS CORP FOLLOWING MEDIA REPORTS AND A GOVERNMENT INVESTIGATION INTO THE ALLEGED MANIPULATION OF NICOTINE IN CIGARETTES MELVIN M BELLI AND WENDELL H GAUTHIER ARE SEEKING CLASSACTION STATUS FOR THE LAWSUIT ON BEHALF OF SMOKERS ADDICTED TO CIGARETTES AS A RESULT OF THE INDUSTRY'S ALLEGED MANIPULATION OF NICOTINE THE LAWSUIT FILED IN US DISTRICT COURT HERE SEEKS 5 BILLION FOR THE WRONGFUL DEATHS AND DISABILITIES SUFFERED BY THOUSANDS ADDICTED TO THE NICOTINE IN CIGARETTES A SPOKESWOMAN FOR PHILIP MORRIS SAID THE COMPANY WASN'T SURPRISED LAWYERS WOULD QUICKLY JUMP ON THE MISDIRECTED PUBLICITY BANDWAGON CREATED BY THE NICOTINE MANIPULATION REPORTS RJR SAID THERE WAS NO JUSTIFICATION FOR THE SUIT OF THE OTHER COMPANIES AMERICAN TOBACCO CO DECLINED COMMENT LIGGETT GROUP INC AND LORILLARD INC A UNIT OF LOEWS CORP COULDN'T BE REACHED FOR COMMENT 9403310089 940331 YOUR MONEY MATTERS LIMITED PARTNERSHIPS IN IRAS CAN SPELL TROUBLE BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL LOUSY PERFORMANCE ISN'T THE ONLY WORRY FOR PEOPLE WITH LIMITED PARTNERSHIPS IN THEIR INDIVIDUAL RETIREMENT ACCOUNTS OR OTHER RETIREMENT PLANS BECAUSE GETTING OUT OF THESE LONGTERM ILLIQUID INVESTMENTS IS OFTEN DIFFICULT OLDER INVESTORS WHO BOUGHT LOTS OF LIMITED PARTNERSHIPS FOR THEIR IRAS A DECADE AGO MAY FIND IT HARD TO MAKE THE MINIMUM IRA WITHDRAWALS REQUIRED BY TAX LAW AFTER AGE 70 1/2 MANY OF THESE PEOPLE ARE IN FOR AN UGLY SURPRISE WARNS MICHAEL STALKER A EUGENE ORE FINANCIAL ADVISER SMALLBUSINESS OWNERS MAY ALSO HAVE TO SCRAMBLE TO PAY PEOPLE WHO ARE RETIRING OR ARE OTHERWISE ENTITLED TO PAYMENTS FROM A COMPANY RETIREMENT PLAN THAT IS LOADED WITH PARTNERSHIPS AND THOSE BUSINESS OWNERS WHO SERVE AS TRUSTEES OF THEIR PLANS FACE LEGAL AS WELL AS FINANCIAL RISKS THEY COULD BE SUED BY EMPLOYEES OR THE LABOR DEPARTMENT FOR INVESTING IMPRUDENTLY IN VIOLATION OF THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT LIMITED PARTNERSHIPS WHICH MAKE THEIR INVESTORS PARTOWNERS OF COMMERCIAL REAL ESTATE CABLETELEVISION SYSTEMS AND OTHER BUSINESS VENTURES WERE HOT INVESTMENTS IN THE 1980S WHILE MANY WERE SET UP AS TAX SHELTERS OTHERS WERE AGGRESSIVELY MARKETED TO TAXDEFERRED RETIREMENT PLANS WITH PROJECTIONS OF HIGH ANNUAL INCOME IT'S NOT UNCOMMON TO FIND PEOPLE WHO INVESTED HALF OR THREEQUARTERS OF THEIR RETIREMENTPLAN DOLLARS IN PARTNERSHIPS FINANCIAL ADVISERS AND ATTORNEYS SAY BUT MANY OF THOSE INVESTMENTS HAVE PRODUCED LITTLE OR NO INCOME BECAUSE OF THE LONG REALESTATE RECESSION TAXLAW CHANGES AND EXCESSIVE FEES MANY PARTNERSHIPS THAT WERE EXPECTED TO LIQUIDATE PROFITABLY AFTER SEVEN TO 10 YEARS ARE DRAGGING ON INDEFINITELY INDIVIDUALS WITH MULTIPLE IRA ACCOUNTS CAN FULFILL THEIR ANNUAL WITHDRAWAL REQUIREMENTS FROM THE IRA OF THEIR CHOICE BUT PEOPLE WHO INVESTED PREDOMINATELY IN PARTNERSHIPS OR HAVE ONLY PARTNERSHIPS LEFT ARE IN A BIND GETTING OUT IS TOUGH BECAUSE PARTNERSHIP SECURITIES WERE NEVER DESIGNED TO BE ACTIVELY TRADED LIKE STOCKS AND BONDS SOME CASHSHORT IRAS AND COMPANY PLANS ARE UNLOADING PARTNERSHIP UNITS IN THE INFORMAL AND LOWVOLUME PARTNERSHIP RESALE MARKET SAYS LAURA LACEY VICE PRESIDENT OF NATIONWIDE PARTNERSHIP MARKETPLACE A RESALEMARKET FIRM IN BEL MARIN KEYS CALIF BUT THERE AREN'T ANY BUYERS FOR THE WEAKEST PARTNERSHIPS AND MARKET PARTICIPANTS SAY SELLERS OFTEN RECEIVE FAR LESS THAN THEY WOULD IF THEY HOLD TO LIQUIDATION IN ADDITION HIGH TRANSACTION COSTS MAKE IT PARTICULARLY UNECONOMICAL TO SELL THE SMALLERTHANUSUAL 2000 PARTNERSHIP HOLDINGS THAT WERE SPECIFICALLY MARKETED FOR IRAS ALTERNATIVELY SOME PEOPLE ARE TAKING THEIR DISTRIBUTIONS IN KIND IN THE FORM OF SOME PARTNERSHIP SECURITIES A RETIRING BUSINESS OWNER WHO DOESN'T NEED THE CASH IMMEDIATELY MIGHT TRANSFER SOME PARTNERSHIP UNITS FROM THE COMPANY PLAN TO AN IRA BUT TAKING DISTRIBUTIONS IN KIND FROM AN IRA CAN BE UNPALATABLE BECAUSE THOSE DISTRIBUTIONS ARE GENERALLY TAXABLE YOU ARE TAKING A DISTRIBUTION OF AN ILLIQUID ASSET BUT YOU HAVE TO PAY TAX ON THE DISTRIBUTION IN LIQUID CASH EXPLAINS C THOMAS MASON III A BENEFITS SPECIALIST IN TUSCON ARIZ COMPOUNDING THE PROBLEMS FOR BOTH IRAS AND SMALLBUSINESS PLANS IS THE SCARCITY OF INFORMATION ABOUT WHAT PARTNERSHIP HOLDINGS ARE REALLY WORTH LIKE OTHER TYPES OF PARTNERSHIP INVESTORS RETIREMENT PLANS OFTEN GET BROKERAGE STATEMENTS AND OTHER FINANCIAL REPORTS THAT SHOW THEIR PARTNERSHIPS AT ORIGINAL COST RATHER THAN OFTENLOWER CURRENT VALUES SUCH REPORTING CAN PENALIZE IRA HOLDERS WHO TAKE A DISTRIBUTION IN KIND THEY CAN END UP BEING TAXED ON SAY A 10000 DISTRIBUTION THE HOLDING'S ORIGINAL COST WHILE THE CURRENT VALUE MIGHT BE ONLY 5000 OR LESS AT SMALLBUSINESS PROFITSHARING PLANS MEANWHILE CARRYING PARTNERSHIP HOLDINGS AT COST CAN RESULT IN INCORRECT PAYMENTS BEING MADE TO PARTICIPANTS WHO RETIRE OR LEAVE THE COMPANY IF COST EXCEEDS CURRENT VALUES EARLY RETIREES GET MORE THAN THEIR FAIR SHARE OF ACCUMULATED FUNDS AND THE LATER RETIREES GET THE SHORT END OF THE STICK SAYS ROBERT W MILLS A SAN RAFAEL CALIF LAWYER SOME PARTNERSHIP SPONSORS DO SUPPLY ESTIMATES OF CURRENT VALUE TO THEIR INVESTORS WHERE THAT IS NOT THE CASE FINANCIAL ADVISERS SAY RETIREMENT PLANS AND OTHER INVESTORS WITH LARGE SUMS IN PARTNERSHIPS SHOULD CHECK RESALEMARKET PRICES AND CONSIDER HAVING THEIR SECURITIES APPRAISED BY A PARTNERSHIP SPECIALIST THAT CAN COST 100 OR MORE FOR EACH PROGRAM THE INVESTMENT PROGRAM ASSOCIATION A WASHINGTON TRADE GROUP FOR PARTNERSHIP ORGANIZERS AND SELLERS IS ORGANIZING A CENTRAL CLEARING HOUSE FOR VALUATIONS THAT IT SAYS WILL BRING DOWN THE COSTS IT HOPES TO HAVE NUMBERS ON 1000 PARTNERSHIPS BY YEAR END BUSINESS OWNERS WHO RUN RETIREMENT PLANS HAVE A SPECIAL INCENTIVE TO PAY MONEY TO GET WHAT IS OFTEN BAD NEWS THE FINANCIAL REPORTS THAT PLANS FILE ANNUALLY WITH THE LABOR DEPARTMENT ASK IF NONTRADED SECURITIES SUCH AS PARTNERSHIPS HAVE BEEN VALUED BY AN INDEPENDENT APPRAISER THE LACK OF AN APPRAISAL MAY ALONG WITH OTHER FACTORS GENERATE AN INVESTIGATION SAYS CHARLES LERNER DIRECTOR OF ENFORCEMENT FOR THE LABOR DEPARTMENT'S PENSION AND WELFARE BENEFITS ADMINISTRATION INDEED THE POSSIBILITY OF A DEPARTMENT INVESTIGATION OR EMPLOYEE LAWSUIT IS ONE OF THE BIGGEST HEADACHES FOR BUSINESS OWNERS WHO INVESTED RETIREMENTPLAN FUNDS HEAVILY IN PARTNERSHIPS THAT WENT BAD EMPLOYEE LAWSUITS APPEAR TO BE FEW BUT THE DEPARTMENT HAS TAKEN COMPANIES TO COURT TO FORCE THEM TO COMPENSATE RETIREMENTPLAN PARTICIPANTS FOR LOSSES DUE TO UNSUITABLE AND OVERLY CONCENTRATED PARTNERSHIP INVESTMENTS LAST YEAR FOR INSTANCE A FEDERAL DISTRICT COURT IN ARIZONA ORDERED CBS MARKETING INC OF PHOENIX AND COMPANY PRESIDENT RICHARD BARR TO PAY A TOTAL OF 375000 A LABOR DEPARTMENT COMPLAINT ALLEGED THAT MR BARR AND CBS MARKETING A FOODBROKERAGE CONCERN NOT RELATED TO CBS INC HAD IMPROPERLY INVESTED AN INORDINATE AMOUNT OF PROFITSHARING PLAN ASSETS IN REALESTATE PARTNERSHIPS DAVID E MANCH AN ATTORNEY FOR CBS MARKETING AND MR BARR SAID THE CONSENT ORDER REPRESENTED A NEGOTIATED SETTLEMENT IN WHICH HIS CLIENTS DIDN'T ADMIT TO ANY WRONGDOING MANY MORE COMPANIES HAVE QUIETLY AGREED TO SUCH PAYMENTS TO THEIR PLANS OR PLAN PARTICIPANTS MR LERNER SAYS THERE ARE NUMEROUS SMALLBUSINESS RETIREMENT PLANS AND IRA HOLDERS AMONG THE RANKS OF INVESTORS THAT HAVE INITIATED ARBITRATION ACTIONS OR FILED LAWSUITS AGAINST THE SECURITIES FIRMS THAT GOT THEM INTO PARTNERSHIPS IN THE FIRST PLACE MEANWHILE A NUMBER OF BUSINESS OWNERS ARE MOVING TO STRAIGHTEN OUT THEIR RETIREMENT PLANS BEFORE REGULATORS GET INVOLVED WHAT THE BUSINESS OWNER WILL TYPICALLY DO IS MAKE THE EMPLOYEES WHOLE AND TAKE THE BUM INVESTMENTS FOR HIMSELF OR HERSELF SAYS MR MASON THE TUCSON BENEFITS SPECIALIST THAT'S PROBABLY THE BEST SOLUTION THEY HAVE FOR DAMAGE CONTROL 9403310088 940331 TECHNOLOGY & HEALTH DOW JONES AEGON USA VENTURE NEW YORK DOW JONES & CO AND AEGON USA INC ANNOUNCED FORMATION OF DJA PARTNERS WHICH WILL GATHER AND DISTRIBUTE COMMERCIAL REAL ESTATE DATA AND ANALYTICS THROUGH ONLINE SERVICES THE SERVICE WILL OFFER METHODS FOR VALUING AND SECURITIZING COMMERCIAL REAL ESTATE AND RELATED FINANCIAL INSTRUMENTS PROVIDE INTERACTIVEMARKET FORECASTS AND OTHER SERVICES INCLUDING REAL ESTATE INVESTMENT TRUST ADVISORY TOOLS GEOGRAPHICBASED MARKET AVAILABILITY ANALYSIS AND TRADING SCREENS AEGON USA IS A UNIT OF AEGON NV A DUTCH FINANCIALSERVICES COMPANY 9403310087 940331 ENTERPRISE SEC SETS SIGHTS ON CERTAIN LIMITED LIABILITY COMPANIES REGULATORS SUSPECT SOME FIRMS ARE BEING USED TO AVOID SECURITIES LAWS BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION HAS JOINED THE BATTLE TO TIGHTEN GOVERNMENT CONTROL OF A POTENTIALLY MAJOR NEW BUSINESS TOOL FOR ENTREPRENEURS IN THE PAST FEW YEARS THOUSANDS OF SMALL BUSINESSES HAVE BEEN FORMED AS SOCALLED LIMITED LIABILITY COMPANIES OR LLCS LLCS OFFER OWNERS THE LIABILITY PROTECTIONS OF A TRADITIONAL CORPORATION AND THE TAX ADVANTAGES OF A PARTNERSHIP CURRENTLY 38 STATES ALLOW THE FORMATION OF LLCS COMPARED WITH ONLY EIGHT IN 1991 THOUGH BACKERS TOUT LLCS AS THE HOT NEW BUSINESS FORM OF THE '90S AND MANY OF THE BUSINESSES ARE UNCONTROVERSIAL MANY REGULATORS SUSPECT SOME INVESTMENT PROMOTERS ARE USING THE FORM TO AVOID SECURITIES LAWS AS REPORTED SEVERAL STATES HAVE FILED CIVIL ACTIONS AGAINST A NUMBER OF LLCS OFFERING INVESTMENT OPPORTUNITIES IN WIRELESS CABLE AND RELATED COMMUNICATIONS TECHNOLOGIES THE STATE ACTIONS ARE AIMED AT CLOSING DOWN THE LLCS' INVESTMENTSALES OPERATIONS INVESTIGATING LLCS IN A MOVE THAT MAY WIDEN THAT REGULATORY BATTLE THE SEC LAST WEEK FILED SUIT IN WASHINGTON FEDERAL COURT AGAINST FOUR DEFENDANTS INCLUDING WILKESBARRESCRANTON LC THE LLC SAYS IT IS DEVELOPING A WIRELESS CABLE SYSTEM IN THE WILKESBARRE/SCRANTON AREA OF PENNSYLVANIA THE SUIT IS THE AGENCY'S FIRST INVOLVING THE LLC ISSUE PAUL HUEYBURNS AN SEC ATTORNEY WORKING ON THE CASE SAYS THE AGENCY ALSO IS CURRENTLY INVESTIGATING SEVERAL OTHER LLCS TO SEE IF THEY QUALIFY AS SECURITIES A NUMBER OF THOSE INVESTIGATIONS HE ADDS ARE IN THE WIRELESSCOMMUNICATIONS AREA IN THE LAWSUIT THE SEC CHARGES THE DEFENDANTS WITH VIOLATING SECURITIES LAWS WHILE RAISING ABOUT 125 MILLION FROM PEOPLE NATIONWIDE THROUGH HIGH PRESSURE SALES TECHNIQUES AND NUMEROUS FALSE STATEMENTS HOWARD SCHIFFMAN AN ATTORNEY FOR THE DEFENDANTS DENIES THE SEC CHARGES OF MISCONDUCT HE ALSO ARGUES THAT OWNERSHIP INTERESTS IN HIS LLC CLIENT DON'T QUALIFY AS A SECURITY AND THEREFORE DON'T COME UNDER THE JURISDICTION OF THE SEC STATE REGULATORS SAY THAT THE SEC'S ENTRY INTO THE FRAY COULD BE A BIG BOOST TO THEIR EFFORTS FEDERAL ACTIONS TEND TO BE MORE WIDELY FOLLOWED AND CARRY MORE WEIGHT THAN SIMILAR STATE ACTIONS SAYS MICHAEL MOREHEAD ASSISTANT DIRECTOR FOR ENFORCEMENT WITH THE ILLINOIS SECURITIES DEPARTMENT IF I TRY TO USE A CASE FROM GEORGIA I HAVE TO SHOW THAT GEORGIA'S STATUTE IS SIMILAR TO OURS BUT OUR STATE SECURITIES STATUTE IS PATTERNED AFTER FEDERAL LAW HE SAYS THE BATTLE OVER LLC REGULATION HAS BEEN RAGING IN MORE THAN A DOZEN STATES STATE SECURITIES REGULATORS CONCEDE THAT THE DEBATE WILL PROBABLY NEVER MATTER TO MOST OF THE LLCS BEING FORMED THAT'S BECAUSE MOST LLCS ARE SMALL BUSINESSES WITH NO MORE THAN A HANDFUL OF OWNERS WHO ARE LEGITIMATELY SEEKING THE TAX BENEFITS AND LIABILITY PROTECTIONS THAT AN LLC CAN OFFER BUT REGULATORS SAY SOME PROMOTERS ARE ABUSING THE LLC FORM BY CLAIMING EXEMPTION FROM SECURITIES LAWS EVEN THOUGH THEY OFTEN HAVE HUNDREDS OF INVESTORS SPREAD AROUND THE COUNTRY THE PROMOTERS ARGUE THAT EACH OF THESE OWNERS IS DIRECTLY INVOLVED IN THE MANAGEMENT OF THE FIRM IF TRUE THIS WOULD EXEMPT THE ENTITY FROM SECURITIES LAWS REGULATORS COUNTER THAT IT IS UNREALISTIC TO EXPECT HUNDREDS OF DISPARATE INDIVIDUALS USUALLY WITH NO BACKGROUND IN THE BUSINESS TO TAKE AN ACTIVE MANAGEMENT ROLE LAST WEEK GEORGIA SECURITIES REGULATORS WON SUPPORT FOR THAT POSITION WHEN A STATE HEARING OFFICER RULED THAT FOUR LLC OFFERINGS DID QUALIFY AS SECURITIES SOME REGULATORS FEEL PARTICULARLY SPURRED TO ATTACK THE LLC QUESTION BECAUSE OF CONCERNS ABOUT POSSIBLE WIDESPREAD FRAUD IN THE WIRELESS FIELD MANY WIRELESS FIRMS THAT HAVE SPRUNG UP IN RECENT YEARS OFFER INVESTORS THE OPPORTUNITY TO BUY INTO A WIRELESS TELEPHONE OR TELEVISION FRANCHISE FOR A PARTICULAR GEOGRAPHIC AREA HOWEVER MANY OF THESE EFFORTS ARE MARKED BY MISLEADING AND SOMETIMES FRAUDULENT TACTICS LAWENFORCEMENT OFFICIALS SAY IN ITS RECENT SUIT THE SEC ALLEGES THAT INVESTORS WERE FALSELY TOLD THAT THEY WOULD BE PUTTING THEIR MONEY INTO AN ALREADY OPERATING WIRELESS CABLE SYSTEM WITH 20 CHANNELS AND ALL NECESSARY FEDERAL COMMUNICATIONS COMMISSION LICENSES PROMOTIONAL LITERATURE ALLEGEDLY TOUTED RETURNS OF AS MUCH AS 400 WITHIN THREE YEARS THE SEC SUIT CHARGES THAT THE DEFENDANTS SOLD TO MANY RETIREES AND BLUECOLLAR WORKERS WHO WERE OFTEN INDUCED TO USE SOME OF THEIR RETIREMENT FUNDS BESIDES THE LLC DEFENDANTS IN THE SEC SUIT ARE VISION COMMUNICATIONS INC OF IRVINE CALIF AND VISION'S COOWNERS WILLIAM L CLEMENS JR AND MICHAEL IMBESI VISION PROVIDED MARKETING AND FINANCIAL SERVICES TO THE WIRELESS LLC AND IN RETURN PLANNED TO TAKE AS MUCH AS 60 OF THE MONEY INVESTED IN THE WIRELESS VENTURE AS COMPENSATION FOR ITS SERVICES SAYS THE SEC SUIT MESSRS CLEMENS AND IMBESI HAVE RECEIVED STATE CEASEANDDESIST ORDERS IN CONNECTION WITH OTHER WIRELESS FIRMS THE SEC SAYS MR SCHIFFMAN THE DEFENDANTS' ATTORNEY SAYS HIS CLIENTS HAVE BEEN VERY CAREFUL TO GIVE EVERY POTENTIAL INVESTOR EXTENSIVE DISCLAIMERS ON THE RISKS OF THE VENTURE THERE WERE NO GUARANTEES OF FUTURE PROFITS AND INVESTORS WERE WARNED THEY COULD LOSE THEIR ENTIRE INVESTMENT SAYS MR SCHIFFMAN HE DECLINES TO DESCRIBE THE CURRENT OPERATING STATUS OF THE PENNSYLVANIA WIRELESS SYSTEM 9403310086 940331 COMPUTERS LOTUS'S HOLD ON GROUPWARE TO BE CONTESTED BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL THE FASTGROWING MARKET FOR GROUPWARE WHICH LINKS COMPUTER USERS HAS LARGELY BEEN A SOLO ACT WITH LOTUS DEVELOPMENT CORP IN THE STARRING ROLE NOW EVERYONE WANTS TO GET ON STAGE LOTUS'S NOTES SOFTWARE BECAME A HIT BECAUSE IT PUT OFFICE WORKERS ON LINE GIVING THEM NEW TOOLS TO COLLABORATE WITH COLLEAGUES AND TAP INTO COMPANY INFORMATION ACROSS CORPORATE COMPUTER NETWORKS BUT NOW RIVALS MICROSOFT CORP AND THE SOONTOBEMERGED NOVELL INC AND WORDPERFECT CORP ARE POISED TO ATTACK NOTES WILL NEVER GET ANOTHER NEW SALE WITHOUT A HEADTOHEAD COMPARISON WITH TOUCHDOWN PROMISES TOM EVSLIN A MICROSOFT MANAGER USING THE CODE NAME FOR MICROSOFT'S GROUPWARE LINE WHICH HE SAYS WILL GO ON SALE IN THE SECOND HALF OF THIS YEAR NOVELL'S PENDING ACQUISITION OF WORDPERFECT PUTS IT ON A COLLISION COURSE WITH LOTUS WORDPERFECT INSIDERS SAY THE TWO COMPANIES HAD BEEN WORKING TOGETHER BEFORE THE BUYOUT WAS ANNOUNCED LAST WEEK AND WILL UNVEIL THEIR ENTRY NOVELL GROUPWARE BEFORE THE END OF JUNE AT THE SAME TIME BOTH NOVELL AND MICROSOFT HAVE BEEN TALKING TO TELEPHONE COMPANIES ABOUT MAKING VERSIONS OF THEIR EMAIL AND GROUPWARE PRODUCTS AVAILABLE TO A MASS MARKET OVER THE PUBLIC PHONE NETWORK THAT COULD CLASH WITH LOTUS'S JOINT VENTURE WITH AMERICAN TELEPHONE & TELEGRAPH CO WHICH WAS ANNOUNCED EARLIER THIS MONTH AND IS INTENDED TO BRING NOTES TO A BROADER AUDIENCE OVER AT&T'S LONGDISTANCE LINES INDUSTRY EXECUTIVES SAY THAT WORDPERFECT HAS NEGOTIATED A SIMILAR DEAL WITH MCI COMMUNICATIONS CORP AND MICROSOFT IS TRYING TO WIN AN AGREEMENT OF ITS OWN WITH AT&T TENTATIVELY CALLED THE INFORMATION EXCHANGE NETWORK ANALYSTS SAY LOTUS WITH A WIDE LEAD IN GROUPWARE INSISTS IT ISN'T WORRIED ANALYSTS ESTIMATE THAT LOTUS'S SALES OF EMAIL SOFTWARE AND NOTES WILL DOUBLE THIS YEAR TO 250 MILLION AND THAT THE GROWTH RATE IS ACCELERATING IT DOESN'T TAKE A GENIUS TO FIGURE OUT THERE'S A HUGE MARKET HERE THE QUESTION IS WHY IT TOOK CERTAIN BIG SOFTWARE COMPANIES SO LONG TO FIGURE IT OUT SAYS JOHN LANDRY LOTUS'S CHIEF TECHNOLOGY OFFICER BUT THE NOVELLWORDPERFECT MERGER AND MICROSOFT'S EXPECTED MOVES MAY FORCE LOTUS TO ALTER ITS STRATEGY ITS COMPETITORS HAVE AN EDGE OVER LOTUS BECAUSE THEY CONTROL OPERATING SYSTEMS THE BASIC SOFTWARE LEVEL ON TOP OF WHICH APPLICATIONS PROGRAMS OPERATE MICROSOFT WITH ITS WINDOWS AND DOS SOFTWARE DOMINATES DESKTOP COMPUTING WHILE NOVELL HAS THE DOMINANT POSITION IN NETWORK OPERATINGSYSTEM SOFTWARE WITH ITS NETWARE PRODUCT LOTUS HAS HAD TO CONFIGURE NOTES TO COEXIST WITH ALL OF THESE PRODUCTS BOTH NOVELL AND MICROSOFT HAVE INDICATED THEY WILL USE THEIR OPERATING SYSTEMS TO THEIR ADVANTAGE MICROSOFT PLANS TO ADD SOME OF THE FUNCTIONS OFFERED BY NOTES TO ITS NEXT VERSION OF WINDOWS WHICH IS KNOWN AS CHICAGO AND IS DUE BY THE END OF THE YEAR AT THE SAME TIME WORDPERFECT EXECUTIVES HAVE HINTED THAT THEY WILL BENEFIT BY CLOSELY LINKING THEIR GROUPWARE PRODUCT WITH NOVELL'S NETWARE NOVELL CAN'T FREEZE OUT COMPANIES INCLUDING LOTUS THAT BUILD SOFTWARE ON TOP OF NETWARE BUT WORDPERFECT WILL HAVE A MOSTFAVOREDNATION STATUS SAYS MARK CALKINS A WORDPERFECT VICE PRESIDENT WHILE NOVELL AND MICROSOFT ARE EXPLOITING THEIR DOMINANCE IN OPERATING SYSTEMS LOTUS IS TAKING A DIFFERENT TACK ONE OF OUR STRONGEST SELLING POINTS RIGHT NOW IS THAT WE ARE NOT LOCKED INTO ONE OR ANOTHER OPERATING SYSTEM SAYS LOTUS'S MR LANDRY AS LOUDLY AS YOU WILL HEAR MICROSOFT AND NOVELL TALK ABOUT THE ADVANTAGES OF CLOSE LINKS TO THE OPERATING SYSTEM WE'LL ARGUE JUST AS STRONGLY THAT FOR THE CUSTOMER GETTING LOCKED INTO ONE OF THEM IS JUST A BAD IDEA INDEED LOTUS HAS SAID IT WANTS TO BE THE SWITZERLAND OF SOFTWARE REMAINING NEUTRAL AS MICROSOFT NOVELL INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC ALL PUSH THEIR OWN OPERATING SYSTEMS DESPITE ITS LONG LEAD IN GROUPWARE LOTUS RECENTLY TRIED TO BOLSTER ITS POSITION IN THE MARKET BY ENTERING THE BIDDING FOR WORDPERFECT ALTHOUGH MOST ANALYSTS FOCUSED ON LOTUS'S DESIRE TO OWN WORDPERFECT'S WORDPROCESSING SOFTWARE LOTUS ALSO WANTED TO NEUTRALIZE WORDPERFECT OFFICE THE COMPANY'S NEW GROUPWARE PRODUCT LOTUS WAS EVEN WILLING TO BEAT NOVELL'S 14 BILLION OFFER ACCORDING TO AD RIETVELD WORDPERFECT'S CHIEF EXECUTIVE WHILE WORDPERFECT OFFICE IS A RELATIVELY NEW LINE HAS ONLY A FRACTION OF THE SALES OF NOTES AND CAN'T OFFER MANY OF THE SAME FEATURES IT NONETHELESS WORRIES LOTUS EXECUTIVES NOW AS THE FOUNDATION FOR NOVELL GROUPWARE IT WILL BE EXPANDED AND CLOSELY LINKED TO NETWARE IT ALREADY OFFERS SUCH FEATURES AS AUTOMATED FORMS PROCESSING PERMITTING FOR EXAMPLE ELECTRONIC EXPENSE REPORTS PLUS GROUPSCHEDULING SOFTWARE AND DOCUMENTEDITING AND MANAGEMENT FUNCTIONS MICROSOFT FOR ITS PART IS BUILDING ITS INITIAL FORAY INTO GROUPWARE ON POWERFUL ENHANCEMENTS OF EMAIL TECHNOLOGY BUT SOME ANALYSTS ARGUE THAT MICROSOFT'S EXPECTED OFFERING WILL FALL SHORT OF THE FUNCTIONS IN NOTES THERE'S NO ONE OUT THERE EVEN CLOSE TO NOTES AND PROBABLY WON'T BE FOR AT LEAST ANOTHER YEAR SAYS TERENCE QUINN OF FURMAN SELZ INC IN NEW YORK NONETHELESS IT'S CLEAR THAT LOTUS'S LONG RUN AS THE ONLY GAME IN GROUPWARE WILL COME TO AN END THEY STILL HAVE A LONG LEAD OVER MICROSOFT AND EVERYONE ELSE SAYS MARY MEEKER AN ANALYST AT MORGAN STANLEY & CO BUT AT THIS POINT THE MARKET OPPORTUNITY IS JUST TOO BIG FOR THEM TO BE THERE ALONE IT'S TOO GOOD AN IDEA 9403310085 940331 POLITICS & POLICY RTC ASSERTS HUBBELL'S FATHERINLAW HELPED CAUSE MADISON GUARANTY TO FAIL BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RESOLUTION TRUST CORP CONTENDS THAT TRANSACTIONS BETWEEN MADISON GUARANTY SAVINGS & LOAN AND THE FATHERINLAW OF A FORMER CLINTON ADMINISTRATION OFFICIAL CONTRIBUTED TO THE INSOLVENCY AND FAILURE OF THE THRIFT MADISON IS AT THE CENTER OF A CONTROVERSY OVER BILL AND HILLARY RODHAM CLINTON'S REAL ESTATE INVESTMENT IN WHITEWATER DEVELOPMENT CO THE RTC'S COMMENTS ABOUT SETH WARD AN ARKANSAS BUSINESSMAN AND FATHERINLAW OF WEBSTER HUBBELL WHO RECENTLY RESIGNED AS ASSOCIATE ATTORNEY GENERAL SHOW THAT THE GOVERNMENT'S INVESTIGATION COVERS FAR MORE THAN THE CLINTONS' DEALINGS WITH THE LITTLE ROCK THRIFT AND ITS FORMER OWNER JAMES MCDOUGAL IN A LETTER TO SEN DALE BUMPERS D ARK LAST YEAR AN RTC OFFICIAL SAID THAT MR WARD PARTICIPATED IN A SERIES OF TRANSACTIONS INVOLVING MADISON GUARANTY AND MADISON FINANCIAL CORP A SUBSIDIARY WHICH ENABLED THOSE ENTITIES TO CIRCUMVENT FEDERAL LAWS AND REGULATIONS THE LETTER FROM PETER KNIGHT THE RTC'S ACTING DIRECTOR OF GOVERNMENT RELATIONS FURTHER STATED THAT THESE TRANSACTIONS INVOLVING MR WARD AMONG OTHERS LED TO THE INSOLVENCY AND FAILURE OF MADISON GUARANTY IN 1989 THE LETTER WAS OBTAINED FROM THE RTC THE FEDERAL AGENCY FORMED TO CLEAN UP THE THRIFT INDUSTRY REACHED IN LITTLE ROCK YESTERDAY MR WARD REFERRED INQUIRIES TO HIS ATTORNEY WHO SAID THE STATEMENT IS ERRONEOUS MR KNIGHT'S ALLEGATIONS SUGGEST THAT MR WARD MAY BE THE SUBJECT OF THE GOVERNMENT'S EFFORTS TO PURSUE CIVIL OR CRIMINAL CASES AGAINST PEOPLE WHO MAY HAVE CONTRIBUTED TO MADISON'S FAILURE WHICH COST US TAXPAYERS 688 MILLION BUT MR WARD'S ATTORNEY AUSTIN JENNINGS SR ASSERTED THAT HE DOESN'T BELIEVE HIS CLIENT IS THE SUBJECT OF GOVERNMENT INVESTIGATIONS MR KNIGHT IS ON LEAVE THIS WEEK AND COULDN'T BE REACHED FOR COMMENT THE RTC'S LETTER CAME IN RESPONSE TO A MAY 1993 COMPLAINT ABOUT THE AGENCY FROM MR WARD WHO HAD JUST AGREED TO PAY THE RTC OVER 340000 TO SETTLE A LENGTHY LEGAL DISPUTE MR WARD WROTE TO SEN BUMPERS WHO SENT COPIES OF MR WARD'S LETTER TO THREE TOP WHITE HOUSE OFFICIALS FROM ARKANSAS CHIEF OF STAFF THOMAS MCLARTY ASSOCIATE COUNSEL WILLIAM KENNEDY AND VINCENT FOSTER WHO WAS DEPUTY COUNSEL WHEN HE COMMITTED SUICIDE LAST YEAR SEN BUMPERS SENT A LETTER OF HIS OWN TO DEPUTY TREASURY SECRETARY ROGER ALTMAN AND FORMER WHITE HOUSE COUNSEL BERNARD NUSSBAUM JOHN LYFORD MR BUMPERS'S PRESS SECRETARY SAID COPIES OF THE LETTER WENT TO TOP WHITE HOUSE OFFICIALS TO CALL THEIR ATTENTION TO THE SENATOR'S REQUEST FOR AN ADMINISTRATION REVIEW OF THE RTC'S LITIGATION POLICIES NOBODY IN THE WHITE HOUSE RESPONDED TO THE BUMPERS LETTER MR LYFORD SAID IN FACT MR ALTMAN WHOSE TERM AS ACTING RTC CHIEF ENDED YESTERDAY DIDN'T RESPOND FOR THREE MONTHS WHEN HE DID HE USED A GOVERNMENT VERSION OF THE OLD DOG ATE MY HOMEWORK EXCUSE THE RTC DOG APPARENTLY ATE YOUR LETTER OF SEVERAL MONTHS AGO HE TOLD MR BUMPERS THE RTC RELEASED THE LETTERS IN RESPONSE TO A REQUEST UNDER THE FREEDOM OF INFORMATION ACT 9403310084 940331 UNION DECRIES LOW SCORES IN BALTIMORE PROFIT SCHOOLS THE AMERICAN FEDERATION OF TEACHERS SAID TEST SCORES DROPPED AT EIGHT INNERCITY BALTIMORE ELEMENTARY SCHOOLS RUN BY EDUCATION ALTERNATIVES INC THE TEACHERS' UNION AN OPPONENT OF THE FORPROFIT COMPANY SAID READING SCORES DROPPED BY FOUR PERCENTILES AND MATH SCORES BY EIGHT PERCENTILES FROM 1992 TO 1993 WHILE OTHER BALTIMORE SCHOOLS SCORED A ONEPERCENTILE INCREASE THE WASHINGTONBASED UNION SAID THE DROP WAS CAUSED BY LESS MONEY SPENT ON STAFFING AND MORE ON IMPROVING FACILITIES A SHIFT THAT CAUSED TEACHERPUPIL RATIOS TO INCREASE AND CLASSROOM SERVICES TO DECLINE THE COMPANY SAID THE TEST SCORES CAN'T BE USED TO ASSESS ITS PERFORMANCE BECAUSE MANY CHANGES WEREN'T IN PLACE UNTIL AFTER STUDENTS HAD TAKEN THE 1993 TESTS THE COMPANY WHICH PURCHASED THE SCHOOLS IN 1992 INSTALLED ONE COMPUTER FOR EVERY FOUR CHILDREN IN MARCH 1993 SAID LORY SUTTON A COMPANY SPOKESWOMAN BETWEEN MARCH AND JUNE OF THAT YEAR SHE SAID STUDENTS ADVANCED 088 GRADE LEVEL COMPARED WITH THE EXPECTED ADVANCEMENT OF 03 GRADE 9403310083 940331 IAM REACHES CONSENT PACT WITH JUSTICE DEPARTMENT WASHINGTON THE INTERNATIONAL ASSOCIATION OF MACHINISTS MAY RETAIN UNION MEMBERS ON THE BOARDS OF TWO COMPETING AIRLINES UNDER A CONSENT AGREEMENT REACHED WITH THE JUSTICE DEPARTMENT IF APPROVED BY FEDERAL DISTRICT COURT IN WASHINGTON THE AGREEMENT WOULD SETTLE A JUSTICE DEPARTMENT LAWSUIT THAT CLAIMED THE BOARD MEMBERSHIP VIOLATED A CLAYTON ACT SECTION THAT PROHIBITS THE SAME PERSON FROM SERVING AS AN OFFICER OR DIRECTOR OF COMPETING COMPANIES IN THIS CASE THE UNION WAS CONSIDERED AS A PERSON EVEN THOUGH DIFFERENT INDIVIDUALS MAY HAVE SERVED ON THE TWO BOARDS THE SETTLEMENT SAYS THE UNION DIRECTORS MAY NOT EXCHANGE CONFIDENTIAL INFORMATION ABOUT THEIR COMPANIES AND RESTRICTS THEIR COMMUNICATIONS REGARDING COMPETITIVELY SENSITIVE SUBJECTS SUCH AS PRICING THE UNION HAS REPRESENTATIVES ON THE BOARDS OF NORTHWEST AIRLINES AND TRANS WORLD AIRLINES 9403310082 940331 POLITICS & PEOPLE FINAL FOUR AN ESCAPE FROM THE POLITICS OF SPORTS BY ALBERT R HUNT WITH THE PRESIDENT AND CONGRESS ON VACATION THE BEST SPECTATOR SPORT THIS WEEKEND WILL BE IN CHARLOTTE NC SITE OF COLLEGE BASKETBALL'S FINAL FOUR CHAMPIONSHIP TOURNAMENT SOME OF THE MOST SPECTACULARLY HYPED SPORTS EVENTS FIZZLE PRO FOOTBALL'S SUPER BOWL IS INVARIABLY A DUD THE COLLEGE FOOTBALL BOWL GAMES HAVE LOST THEIR SPLENDOR AS THEY'VE MULTIPLIED AND BECOME MARKETING VEHICLES FOR THEIR SPONSORS EVEN THE OUTCOME OF BASEBALL'S REVERED WORLD SERIES IS ALLTOOFREQUENTLY PREDICTABLE BUT THERE'S ALMOST NEVER A BAD FINAL FOUR THESE GAMES OFFER THE EXCITEMENT SUSPENSE ROMANCE AND EVEN THE INNOCENCE WE LIKE TO ASSOCIATE WITH COLLEGE ATHLETICS IT'S NOT UNCOMMON FOR HUMONGOUS UNDERDOGS NORTH CAROLINA STATE IN 1983 OR VILLANOVA IN 1985 TO WALK AWAY WITH ALL THE MARBLES ALL THIS PASSION AND FERVOR WILL BE PRESENT THIS WEEKEND WITH A DAZZLING DIVERSITY FIRSTTIME FINAL FOUR ENTRY FLORIDA IS THE CINDERELLA TEAM PERHAPS THE VILLANOVA OR NC STATE OF THIS YEAR DUKE WHOSE BASKETBALL PROGRAM COMBINES THE ACADEMICS OF YALE WITH THE ATHLETICISM OF UCLA AND IS LED BY A GENIUS COACH RETURNS TO ITS SEVENTH FINAL FOUR IN NINE YEARS ARKANSAS PERHAPS THE MOST TALENTED TEAM IN THE TOURNAMENT WILL BE SPURRED ON PROBABLY IN PERSON BY ITS NUMBER ONE FAN BILL CLINTON AND ARIZONA IS AN EXCEPTIONALLY TALENTED TEAM THAT'S FINALLY PLAYING UP TO ITS POTENTIAL THE EXCITEMENT OF THIS TOURNAMENT PROVIDES A WELCOME ESCAPE FROM THE POLITICAL INFIGHTING AND ANIMOSITIES THAT PLAGUE COLLEGE ATHLETICS THE BLACK COACHES INSIST THAT LIMITS ON ATHLETIC SCHOLARSHIPS HURT YOUNG AFRICANAMERICANS AND SIMILAR BATTLES RAGE OVER REQUIRING MINIMAL COLLEGE BOARD SCORES PROPOSITION 48 FOR ATHLETES TO PLAY IN THEIR FRESHMAN YEAR AND OVER WHO CONTROLS THE GAMES THE EDUCATORS OR THE ATHLETIC BOOSTERS THE BATTLES ARE PITCHED BECAUSE THE STAKES ARE HIGH THE TELEVISIONDRIVEN BIG BUCKS GIVE NEW RESONANCE TO THE OLD SAW ABOUT BUILDING A UNIVERSITY THE FOOTBALL TEAM CAN BE PROUD OF SCHOOLS NOT ONLY GET DIRECTLY REWARDED FOR MAKING THE BASKETBALL TOURNAMENT OR FOOTBALL BOWL GAMES BUT ENJOY ENORMOUS RESIDUAL BENEFITS BIGGER CROWDS AND MORE IMPORTANT MORE TV EXPOSURE AND INCREASED OVERALL ALUMNI GIVING SINCE FOOTBALL AND BASKETBALL ARE THE ONLY REAL REVENUEGENERATING SPORTS THE DIFFERENCE BETWEEN AN ATHLETIC PROGRAM BREAKING EVEN OR ENDING UP DEEPLY IN THE RED OFTEN HINGES ON MAKING THE FINAL FOUR OR A FOOTBALL BOWL GAME THIS PRESSURE TO WIN PRODUCES THE PRESSURE TO CUT CORNERS OR CHEAT ONE EXPERT ESTIMATES THAT ABOUT 10 OF THE COLLEGES CHEAT BIG TIME BIG CASH AND CARS AND THAT OF THE REST ABOUT 99 CHEAT SMALL TIME BENDING RULES MANY OF WHICH ARE PETTY AND UNNECESSARY IT'S ALL SUPPOSED TO BE POLICED BY THE NCAA AN INSTITUTION THAT PRIVATELY DRAWS CONTEMPT FROM MOST OUTSIDE EXPERTS THE NCAA THEY SAY IS ARROGANT ARBITRARY AND NOT EAGER TO DISRUPT THE CASH COW OF BIGTIME COLLEGE SPORTS A FEW YEARS AGO THE NCAA PUT THE KENTUCKY BASKETBALL TEAM ON PROBATION TODAY KENTUCKY IS BACK INTO BIGTIME WINNING WAYS BUT THE MOST ILLUSTRIOUS EXAMPLE OF THE INSTITUTIONAL IMPURITY OF COLLEGE ATHLETICS IS NOT KENTUCKY WHERE WHAT YOU SEE IS WHAT YOU GET BUT NOTRE DAME WHICH REALLY HAD BEEN THE SHOWCASE OF SUCCESS AND INTEGRITY IN COLLEGE SPORTS THREE YEARS AGO NOTRE DAME FIRED BASKETBALL COACH DIGGER PHELPS WHO AFTER TAKING THIS TRADITIONAL FOOTBALL SCHOOL TO A POSTSEASON TOURNAMENT FOR EIGHT STRAIGHT YEARS HAD A LOSING SEASON AT THE SAME TIME NOTRE DAME CELEBRATES LOU HOLTZ A GREAT FOOTBALL COACH BUT A TERRIBLE ROLE MODEL FOR YOUNG KIDS WHEN A STAR HIGH SCHOOL PLACEKICKER CHOSE TO GO TO FLORIDA STATE LAST YEAR INSTEAD OF NOTRE DAME COACH HOLTZ ASSAILED THE KID FOR WRECKING HIS LIFE YOU MADE A 40YEAR MISTAKE SPORTS ILLUSTRATED REPORTED THE NOTRE DAME COACH TOLD THE 18YEAROLD ADDING YOU LET ME DOWN AND YOU LET YOUR FATHER DOWN TERRY PHELPS A NOTRE DAME LAW SCHOOL PROFESSOR AND WIFE OF THE FORMER BASKETBALL COACH HAS WRITTEN A MARVELOUS BOOK THE COACH'S WIFE IN WHICH SHE SAYS I THINK THAT WE WILL YEARS HENCE LOOK BACK ON COLLEGE SPORTS OF THE NINETIES MUCH AS WE LOOK BACK ON THE WALL STREET OF THE EIGHTIES HOW HAD WE SO LOST OUR VALUES WHAT FORCES BLINDED US TO OUR EXCESSES AND OUR GREED NOTRE DAME REMAINS AMONG THE BEST OF THE BIGTIME SPORTS SCHOOLS BUT IT'LL NEVER REGAIN ITS LUSTER AS LONG AS IT HAS AN ATHLETIC DIRECTOR WHO CARES MORE ABOUT DOLLARS THAN VALUES FOR SURE SOME TENSION BETWEEN THE ACADEMY AND ATHLETICS IS INEVITABLE BUT THE CURRENT SYSTEM CAN BE IMPROVED FOR STARTERS THE NCAA RULING BODY IS A TRAVESTY AND OUGHT TO BE REPLACED BY SOME ORGANIZATION THAT IS RUN BY EDUCATORS BUT SYMPATHETIC TO SPORTS IF SOME OF THE STARS WERE REWARDED ABOVE THE TABLE IT MIGHT REDUCE BELOWTHETABLE CHEATING JOURNALIST JOHN FEINSTEIN WHO'S ONE OF THE COUNTRY'S MOST PERCEPTIVE BASKETBALL ANALYSTS DESPITE HIS INABILITY TO APPRECIATE THE VIRTUES OF JOHN THOMPSON'S ADMIRABLE PROGRAM AT GEORGETOWN THINKS IT'S DESIRABLE AND ONLY EQUITABLE THAT THE PLAYERS WHO PRODUCE THESE BIG BUCKS SHARE SOME OF THE DIVIDENDS HE PROPOSES THAT A PORTION OF ALL PROCEEDS FROM THE NCAA BASKETBALL TOURNAMENT AND COLLEGE BOWL GAMES BE PUT INTO A TRUST FUND TO BE DISTRIBUTED TO THE PLAYERS AFTER THEY HAVE RECEIVED A COLLEGE DEGREE THE GAMES ARE MUCH BETTER THAN THE PEOPLE WHO CONTROL THEM SAYS MR FEINSTEIN THERE SHOULD BE NO BACKSLIDING ON TOUGHER ACADEMIC REQUIREMENTS AND WHILE THE NUMBER OF SCHOLARSHIPS SHOULDN'T BE REDUCED THEY SHOULD BE TIED TO GRADUATION RATES SCHOOLS THAT GRADUATE MOST OF THEIR PLAYERS WOULD BE REWARDED WHILE COLLEGES WHERE THE CLASSROOM IS MORE LIKE A FOREIGN COUNTRY WOULD BE PENALIZED MOREOVER ANY SANCTIONS OUGHT TO MEAN THE AUTOMATIC DISMISSAL OF COACHES THAT'S A POWERFUL INCENTIVE NOT TO CHEAT AND COLLEGES OUGHT TO GO BACK TO NOT PLAYING FRESHMEN THERE IS A BIG ADJUSTMENT BETWEEN HIGH SCHOOL AND COLLEGE NOTES SEN BILL BRADLEY A FORMER ALLAMERICAN BASKETBALL PLAYER AT PRINCETON FRESHMEN SHOULD HAVE A YEAR TO MAKE THAT ADJUSTMENT BEFORE BEING EXPOSED TO THE PRESSURES WHICH BRINGS US BACK TO CHARLOTTE AFTER A GREAT SEMIFINAL THE MONDAY NIGHT GAME SHOULD BE A CLASSIC DUKE VS ARKANSAS THE CLASS OF COLLEGE BASKETBALL A CONFESSION MY WIFE IS A DUKE ALUMNA AND CURRENT TRUSTEE AGAINST THE APPEALING UPSTARTS WITH THE PRESIDENT OF THE UNITED STATES IN THE STANDS YELLING FOR HIS HOGS IT'LL BE A NIGHTMARE FOR POLITICALLY CORRECT CONSERVATIVES WHO ODDLY SEE DUKE AS A BASTION OF INTOLERANT LIBERALISM AND ARKANSAS AS THE TEAM AND CULTURE OF BILL CLINTON WHOM THEY DESPISE THE PRESIDENT'S ESCAPE HOWEVER WILL BE SHORTLIVED IN A SENSATIONAL GAME THE BLUE DEVILS WILL WIN BY TWO 9403310081 940331 TECHNOLOGY & HEALTH AMERITECH BELL ATLANTIC ADVANCE MULTIMEDIA PLANS AMERITECH CORP PICKED ADC TELECOMMUNICATIONS INC TO SUPPLY THE VIDEO DELIVERY SYSTEM FOR ITS 44 BILLION INTERACTIVE PROJECT GIVING ADC A CONTRACT VALUED AT UP TO 100 MILLION OVER THE NEXT FIVE YEARS ADC IS THE FIRST VENDOR NAMED BY THE CHICAGO REGIONAL BELL PHONE COMPANY FOR THE PROJECT AIMED AT BUILDING INTERACTIVE NETWORKS IN 132 COMMUNITIES ACROSS A FIVESTATE TERRITORY IN THE MIDWEST AMERITECH HAS REPORTEDLY TAPPED DIGITAL EQUIPMENT CORP OVER INTERNATIONAL BUSINESS MACHINES CORP TO PROVIDE VIDEOSERVER EQUIPMENT FOR THOSE NETWORKS VIDEO SERVERS DIGITIZE STORE AND DISTRIBUTE MOVIES AND OTHER INTERACTIVE FARE OVER PHONE LINES AN AMERITECH SPOKESMAN WOULDN'T COMMENT SEPARATELY BELL ATLANTIC CORP SAID IT WILL OPEN A MULTIMILLION DOLLAR DIGITAL PRODUCTION CENTER IN RESTON VA TO PRODUCE INTERACTIVE MULTIMEDIA TELEVISION PROGRAMS THE RESTON FACILITY SCHEDULED TO BE OPEN IN JULY WILL ACT AS AN EXTENSION OF BELL ATLANTIC'S FULLSERVICE EXPERIMENTAL NETWORK IN NEARBY ARLINGTON VA WHICH DELIVERS TELEPHONE DATA AND VIDEO SERVICES OVER A SINGLE PHONE LINE BELL ATLANTIC PLANS TO OFFER INTERACTIVE VIDEO SERVICES TO 12 MILLION HOMES BY THE END OF NEXT YEAR 9403310080 940331 INTERNATIONAL BRIEF CANAL PLUS SA FRENCH COMPANY POSTS RISE OF 9 FOR 1993 NET INCOME FRENCH PAYTELEVISION GROUP CANAL PLUS SA REPORTED A 9 RISE IN 1993 EARNINGS TO 12 BILLION FRANCS 2093 MILLION FROM 11 BILLION FRANCS A YEAR EARLIER THE RESULT WAS IN LINE WITH THE COMPANY'S FORECASTS REVENUE ROSE 9 TO 867 BILLION FRANCS FROM 794 BILLION FRANCS OPERATING PROFIT FELL 25 TO 165 BILLION FRANCS CANAL PLUS BENEFITED FROM A GAIN OF 133 MILLION FRANCS RELATED TO THE SALE OF A 20 STAKE IN ITS CANAL SATELLITE UNIT LOOKING AHEAD CANAL PLUS HAS WARNED THAT 1994 NET INCOME COULD BE DOWN BY AS MUCH AS 20 BECAUSE OF ACCELERATED INVESTMENTS THE GOVERNMENT AT ONE POINT WAS THREATENING TO EXTRACT SOME 450 MILLION FRANCS FROM CANAL PLUS TO BE PUMPED INTO THE COUNTRY'S AILING CABLETV NETWORK IN A STATEMENT YESTERDAY CANAL PLUS WOULD ONLY SAY THAT IT CONSERVATIVELY PROJECTS PROFIT BEFORE NONRECURRING ITEMS TO BE ABOUT ONE BILLION FRANCS THIS YEAR 9403310079 940331 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF DEBENTURES DUE APRIL 7 2004 PRICED AT PAR TO YIELD 729 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 130 MILLION OF MEDIUMTERM NOTES DUE APRIL 7 2009 PRICED AT PAR TO YIELD 753 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 82 BASIS POINTS ABOVE 10YEAR TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC TRANSAMERICA FINANCE CORP 500 MILLION OF SENIOR NOTES PRICED THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 300 MILLION OF SENIOR NOTES DUE MARCH 15 1999 WAS PRICED AS 68S AT 99973 TO YIELD 6805 THE NOTES WERE PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 200 MILLION OF SENIOR NOTES DUE MARCH 15 2004 WAS PRICED AS 75S AT PAR THE NOTES WERE PRICED AT A SPREAD OF 74 BASIS POINTS ABOVE TREASURYS BOTH TRANCHES ARE NONCALLABLE AND ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP TRANSAMERICA FINANCE IS A UNIT OF TRANSAMERICA CORP AK STEEL HOLDING CORP INITIAL OFFERING OF 176 MILLION COMMON SHARES PRICED AT 2350 EACH THROUGH LEAD UNDERWRITER CS FIRST BOSTON INC HANOVER DIRECT INC EIGHT MILLION COMMON SHARES PRICED AT 6375 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO AND ALEX BROWN & SONS INC PC SERVICE SOURCE INC INITIAL OFFERING OF 11 MILLION COMMON SHARES PRICED AT 9 EACH THROUGH UNDERWRITERS LED BY WILLIAM K WOODRUFF & CO SCUDDER WORLD INCOME OPPORTUNITIES FUND INC INITIAL OFFERING OF 34 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC OHIO BUILDING AUTHORITY 125 MILLION OF 1994 SERIES A BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 35 IN 1995 TO 6125 IN 2013 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P ABN AMRO BANK NV NETHERLANDS 500 MILLION GUILDERS OF 6375 EUROBONDS DUE APRIL 21 2000 AT ISSUE PRICE 10021 FOR OWN ACCOUNT REOFFERED AT 9946 TO YIELD 649 A SPREAD OF 25 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE DEUTSCHE SIEDLUNGS UND LANDESRENTENBANK GERMANY 50 MILLION SWISS FRANCS OF 475 PUBLIC BONDS DUE APRIL 29 2004 PRICED AT 1015 VIA BANCA DEL GOTTARDO FEES 275 KONINKLIJKE VAN OMMEREN NV NETHERLANDS 75 MILLION OF FLOATINGRATE EURONOTES DUE MAY 9 2001 AT ISSUE AND REOFFER PRICE PAR VIA CHEMICAL INVESTMENT BANK LTD PAYABLE QUARTERLY AT 05 POINT OVER THREEMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS PUTANDCALL OPTION EXERCISABLE AT PAR IN MAY 1999 FEES 04 NEDERLANDSE GASUNIE NV NETHERLANDS 150 MILLION GUILDERS OF 6 EUROBONDS DUE MAY 18 1999 AT ISSUE PRICE 10025 VIA INTERNATIONALE NEDERLANDEN BANK NV REOFFERED AT 9945 TO YIELD 613 A MARGIN OF EIGHT BASIS POINTS OVER COMPARABLE DUTCH STATE LOAN FEES ONE SOCIETE GENERALE AUSTRALIA LTD FRENCH PARENT 75 MILLION AUSTRALIAN DOLLARS OF 7 EUROBONDS DUE MAY 12 1997 AT ISSUE PRICE 10026 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BONDS YIELD 743 AT 98885 COMANAGERS' BREAKEVEN PRICE GUARANTOR SOCIETE GENERALE FEES 15 9403310078 940331 UNITED TECHNOLOGIES TO PAY 150 MILLION IN SETTLING CASE OF US HELICOPTER BILLS BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL UNITED TECHNOLOGIES CORP AGREED TO PAY 150 MILLION UNDER AN AGREEMENT WITH THE US JUSTICE DEPARTMENT TO SETTLE CHARGES THAT THE COMPANY'S SIKORSKY AIRCRAFT UNIT IMPROPERLY BILLED THE GOVERNMENT ON MILITARY HELICOPTERS THE IMPROPER BILLINGS OCCURRED FROM 1982 THROUGH 1988 ALTHOUGH THE COMPANY HAS CLAIMED THAT IT VOLUNTARILY DISCLOSED THEM TO THE GOVERNMENT IN 1988 AN EMPLOYEE ALSO REPORTED THEM ABOUT THE SAME TIME UNDER THE FEDERAL WHISTLEBLOWER ACT UNDER THAT STATUTE AIMED AT ENCOURAGING EMPLOYEES TO REPORT WRONGDOING BY THEIR EMPLOYERS THE WHISTLEBLOWER WILL RECEIVE 225 MILLION OF THE MONEY IN REWARD THIS SETTLEMENT IS THE LARGEST EVER MADE UNDER THE PROVISIONS OF THE FALSE CLAIMS ACT SAID FRANK W HUNGER THE HEAD OF THE JUSTICE DEPARTMENT'S CIVIL DIVISION UNITED TECHNOLOGIES BASED IN HARTFORD CONN SAID THE SETTLEMENT WON'T HAVE A MATERIAL ADVERSE EFFECT ON THE COMPANY'S FINANCIAL POSITION THE COMPANY DISCLOSED IN ITS 1992 ANNUAL REPORT THAT IT HAD ESTABLISHED SUFFICIENT FINANCIAL RESERVES TO COVER A SETTLEMENT THE VIOLATIONS INVOLVED UNITED TECHNOLOGIES BILLING THE GOVERNMENT BEFORE THE WORK ON MANUFACTURE OF CERTAIN HELICOPTERS WAS COMPLETED THE COMPANY SAID IT PREMATURELY BILLED THE GOVERNMENT 80 MILLION BETWEEN 1982 AND 1988 IT SAID THE 150 MILLION IT AGREED TO PAY IN SETTLEMENT ESSENTIALLY IS FOR THE USE OF THAT MONEY THE COMPANY HAD DURING THE PERIOD UNITED TECHNOLOGIES SAID THAT AFTER ITS VOLUNTARY DISCLOSURE IN 1988 IT CONDUCTED ITS OWN INTERNAL INVESTIGATION TO DETERMINE THE EXTENT OF THE BILLING INACCURACIES THE EMPLOYEE WHO FILED THE WHISTLEBLOWER SUIT AGAINST THE COMPANY DOUGLAS KEETH WAS PART OF THAT INVESTIGATIVE TEAM THE COMPANY SAID A UNITED TECHNOLOGIES SPOKESMAN SAID THAT MR KEETH FILED HIS ACTION BETWEEN THE COMPANY'S VOLUNTARY DISCLOSURE AND THE FULL REPORT PREPARED BY THE INVESTIGATIVE TEAM HE SAID THE COMPANY DIDN'T LEARN OF MR KEETH'S ACTION UNTIL WELL AFTER THE COMPANY FILED ITS FULL REPORT OF THE INTERNAL INVESTIGATION THE JUSTICE DEPARTMENT SAID MR KEETH FILED HIS WHISTLEBLOWER SUIT IN 1989 MR KEETH WAS THEN VICE PRESIDENT FOR FINANCE AT UNITED TECHNOLOGIES ACCORDING TO THE JUSTICE DEPARTMENT MR KEETH ALLEGED THAT SIKORSKY USED SEVERAL LONGSTANDING PRACTICES IN WHICH IT KNOWINGLY FILED INFLATED PROGRESSPAYMENT BILLINGS ON GOVERNMENT CONTRACTS MR KEETH ALSO ALLEGED IN THE SUIT THAT UNITED TECHNOLOGIES OFFICIALS ATTEMPTED TO SUPPRESS DISCLOSURE OF THE IMPROPER BILLING PRACTICES TO THE DEPARTMENT OF DEFENSE AFTER THE COMPANY DISCOVERED AND INVESTIGATED THE PRACTICES ACCORDING TO MR KEETH COMPANY OFFICIALS DID THIS WHILE PARTICIPATING IN THE DEPARTMENT OF DEFENSE'S VOLUNTARYDISCLOSURE PROGRAM THE JUSTICE DEPARTMENT SAID THAT UNDER THE GOVERNMENT'S VOLUNTARYDISCLOSURE PROGRAM DEFENSE CONTRACTORS MAY REPORT POTENTIAL FRAUD BUT IT DOESN'T OFFER CRIMINAL AND CIVIL AMNESTY IT NOTED IN ITS PRESS STATEMENT THAT THE VOLUNTARY PROGRAM IS DEPENDENT UPON THE CONTRACTOR'S COMPLETE AND CANDID DISCLOSURE AND COOPERATION IN THE PROCESS ACCORDING TO MR HUNGER THE ASSISTANT ATTORNEY GENERAL SIKORSKY INFLATED MATERIAL INVENTORIES USED AS A BASIS FOR PROGRESS BILLS ON FIXEDPRICE CONTRACTS ALTHOUGH SIKORSKY NEVER RECEIVED MORE MONEY IN TOTAL THAN SET UNDER THE CONTRACTS THE INFLATED PROGRESS PAYMENTS CONSTITUTED INTERESTFREE LOANS FROM THE GOVERNMENT AND RESULTED IN ADDITIONAL DEBTSERVICE COSTS TO THE GOVERNMENT 9403310077 940331 LETTERS TO THE EDITOR WE INTEND TO PUNISH LIBYAN TERRORISM YOUR FEB 28 WASHINGTON INSIGHT COLUMN MISSED THE MARK WHEN IT ACCUSED THE ADMINISTRATION OF MISSING AN OPPORTUNITY TO PUNISH LIBYAN TERRORISM WE REMAIN DETERMINED TO ENSURE THAT THE PERPETRATORS OF THE BOMBINGS OF PAN AM 103 AND UTA 772 ARE BROUGHT TO JUSTICE THE FAMILIES OF THE VICTIMS OF THESE MURDEROUS ACTS DESERVE NO LESS PRESIDENT CLINTON AND SECRETARY CHRISTOPHER HAVE STATED PUBLICLY THAT STILL STRONGER INTERNATIONAL MEASURES AGAINST LIBYA INCLUDING A WORLDWIDE OIL EMBARGO SHOULD BE ENACTED IF LIBYA CONTINUES TO DEFY THE DEMANDS OF JUSTICE AND THE INTERNATIONAL COMMUNITY THE ENHANCED SANCTIONS ALREADY IN PLACE INCLUDE FREEZING LIBYAN ASSETS WORLDWIDE BANNING EQUIPMENT FOR REFINING AND TRANSPORTING OIL AND TIGHTENING THE INTERNATIONAL AIR EMBARGO AGAINST LIBYA CURRENTLY WE ARE AGGRESSIVELY ENFORCING THESE SANCTIONS LAST DECEMBER FOR EXAMPLE RIGHT AFTER THE NEW SANCTIONS TOOK EFFECT WE FROZE 90 MILLION IN LIBYAN FUNDS IN THE US BELONGING TO A KEY ARAB FINANCIAL INSTITUTION BASED IN BAHRAIN AS A RESULT OF THIS ENFORCEMENT ACTION AND DIPLOMATIC PRESSURE THAT INSTITUTION SEVERED ALL TIES TO LIBYA THIS DECISIVE ACTION SENDS A STRONG MESSAGE THAT WE ARE SERIOUS ABOUT ENFORCING THESE SANCTIONS OUR POLICY IS TO INCREASE MULTILATERAL SANCTIONS INCREMENTALLY STEADILY INCREASING THE PRESSURE ON LIBYA TO COMPLY WITH THE UN'S DEMANDS THE LATEST SANCTIONS TOOK EFFECT JUST THREE MONTHS AGO WE WILL PRESS OTHER GOVERNMENTS TO JOIN US IN ADDITIONAL SANCTIONS AGAINST LIBYA IF NECESSARY REGARDLESS OF THE STATE OF THE INTERNATIONAL OIL MARKET CONCERNS ABOUT THE PROPOSAL TO RELOCATE THE COUNTERTERRORISM OFFICE AT THE STATE DEPARTMENT ARE ALSO MISPLACED GIVEN THE CLOSE TIES AMONG DRUG TRAFFICKING INTERNATIONAL TERRORISM AND OTHER INTERNATIONAL CRIMINAL ISSUES IT MAKES SENSE TO BRING THE DEPARTMENT'S RESOURCES ON THESE IMPORTANT ISSUES INTO ONE BUREAU UNDER A SINGLE SENIOR MANAGER WITH RANK TITLE AND CLOUT THE ASSISTANT SECRETARY WHO WILL HEAD THE NEW BUREAU IS AN EXPERIENCED AMBASSADOR HE WILL BE IN THE MAINSTREAM CHAIN OF COMMAND WITHIN THE STATE DEPARTMENT NOT IN AN ADJUNCT OFFICE IN A BIG BUREAUCRACY STRENGTHENING OUR COUNTERTERRORISM OPERATION ILLUSTRATES THE HIGH PRIORITY THE CLINTON ADMINISTRATION HAS PLACED ON FIGHTING INTERNATIONAL TERRORISM AND THE THREAT IT POSES TO THE AMERICAN PEOPLE IF THERE IS AN OPPORTUNITY BEING MISSED IT IS THE OPPORTUNITY FOR LIBYA TO COMPLY WITH THE UN'S DEMANDS 9403310075 940318 LETTERS TO THE EDITOR THE ASSAULT ON HETEROSEXUALITY THE FEB 24 EDITORIALPAGE ARTICLE MORALITY AND HOMOSEXUALITY AND THE MARCH 3 LETTERS OF RESPONSE WERE TAKEN TOGETHER MORE ILLUMINATING TO THE NATION'S CURRENT SEXUAL MORALS DEBATE THAN THEIR INDIVIDUAL CONTENT WOULD SUGGEST THE ORIGINAL ARTICLE BY A GROUP OF CHRISTIAN AND JEWISH SCHOLARS WHO CLAIM HETEROSEXUALITY SHOULD BE THE RECOGNIZED NORM BASED ON THE IMPORTANCE OF MARRIAGE AND THE FAMILY TO SOCIETY WAS WRITTEN WITH SUCH AN OBVIOUS EFFORT TO AVOID GIVING OFFENSE THAT IT WAS ALMOST STERILE YET LOOK AT THE RESPONSES VICIOUS STEREOTYPE INTOLERANCE BIGOTRY I AM OUTRAGED DIATRIBE AND SEVERAL MORE OF THE STANDARD CLICHES THAT ARE USED TO INTIMIDATE SINCERE PEOPLE FROM HONESTLY PRESENTING REASONED OPINIONS IF THIS REPRESENTS THE TWO SIDES OF THE DEBATE WHICH SIDE OWNS THE VICIOUSNESS INTOLERANCE AND BIGOTRY MOST READERS WILL NOT HAVE MISSED THE CONTRAST IT IS REMARKABLE THAT IN 1994 IT IS IMPOSSIBLE TO STATE WHAT WAS TAKEN FOR GRANTED NOT MUCH MORE THAN A DECADE AGO AND WHAT MOST AMERICANS STILL BELIEVE WITHOUT BEING ACCUSED OF HATEMONGERING AT THIS RATE IN ANOTHER 10 YEARS IT WILL BE A CRIME TO PUBLISH SUCH A PIECE STATEMENTS IN THE LETTERS OF RESPONSE THAT THERE IS NOT AN AGENDA AGAINST HETEROSEXUALITY WHAT WE CALL HETEROPHOBIA ARE JUST FACTUALLY INCORRECT IT IS ALSO INCORRECT TO BLAME THIS AGENDA ON ALL GAYS BUT THERE IS AN ASSAULT ON THE NORMALCY OF HETEROSEXUALITY AND OTHER TRADITIONAL STANDARDS LIKE THE SANCTITY OF MARRIAGE AND THE SEXUAL PROTECTION OF CHILDREN THAT IS BEING LED BY AN ACADEMIC SEXOLOGICAL ELITE IN CONSORT WITH GAY ACTIVISM HERE ARE JUST SOME OF THE DOCUMENTABLE FACTS IN A 1989 NATIONAL RESEARCH COUNCIL REPORT SUPPOSEDLY RELEVANT TO AIDS PREVENTION SEX RESEARCH EXPERTS JOHN GAGNON CHARLES TURNER AND OTHERS URGE US TO CHALLENGE OUR PRECONCEIVED NOTIONS OF CHILDHOOD SEXUAL DEVELOPMENT BY LOOKING AT THE SAMBIA SOCIETY OF PAPUA NEW GUINEA WHY BECAUSE IN THIS ENLIGHTENED GROUP YOUNG BOYS ARE INITIATED INTO HOMOSEXUAL PRACTICES AT AGES SEVEN TO 10 DR GAGNON A SUNY PROFESSOR AND OCCASIONAL OPED WRITER FOR THE NEW YORK TIMES ALSO TELLS US IN HIS BOOK HUMAN SEXUALITIES THAT HUMAN SEXUALITY CAN BE MADE TO FIT THE MOLDS WE WANT AND THAT FOR OUR CHILDREN TO HAVE FULFILLING SEX LIVES WE MAY HAVE TO PROMOTE SEXUAL ACTIVITY THESE ARE THE SAME TWO RESEARCHERS WHO KNOWINGLY WITHHELD INFORMATION ABOUT THE MOST DAMNING INDICTMENT OF KINSEY'S RESEARCH IN AN ARTICLE IN THE JOURNAL SCIENCE IN 1989 THE STORY IS DOCUMENTED IN THE BOOK KINSEY SEX AND FRAUD MR GAGNON HAS WRITTEN IN THE JOURNAL DAEDALUS THAT GAY RESEARCHERS AND INTELLECTUALS HAVE BEGUN A RESEARCH AGENDA IN SOCIOLOGY PSYCHOLOGY HISTORY AND EVEN PSYCHOANALYSIS GAY ACTIVISM IS MORE ABOUT FIERCE OPPOSITION TO THE TRADITIONAL VIEW OF FAMILY THAN IT IS ABOUT PROMOTING ONE ALTERNATIVE IE IT IS AGAINST ONE VIEW THE ACCEPTED NORM AND FOR EVERYTHING ELSE ALMOST ANYTHING FORMERLY KNOWN AS DEVIANT THIS IS ALFRED KINSEY'S IDEOLOGY AND THAT OF HIS TWO LIVING INFLUENTIAL COWORKERS WARDELL POMEROY AND PAUL GEBHARD ALL SEX IS NORMAL AND GOOD MERELY A CAPACITY TO RESPOND TO ANY SUFFICIENT STIMULUS UNHEALTHY SOCIAL RESTRAINTS A LEGACY OF JUDEOCHRISTIAN MYTHS ARE THE ONLY REASON WE HAVE TABOOS THUS WE HAVE RICHARD GOLDSTEIN TELLING US IN HIS VILLAGE VOICE ARTICLE FAITH HOPE AND SODOMY THAT UNTIL AIDS IT WAS POSSIBLE TO IMAGINE PROMISCUITY AS THE ESSENCE OF GAYNESS ACCORDING TO MR GOLDSTEIN GAY LIBERATION HOLDS THAT HOMOEROTICISM EXISTS IN EVERYONE WHETHER OR NOT THEY EXPRESS IT IN SEX AND ARMED WITH THIS FAITH IN THE GOODNESS OF GAYNESS IT MOVES BEYOND ITS ENEMIES' WORST NIGHTMARE IT REPRODUCES AND RECRUITS EMPHASIS ADDED HE BLUNTLY STATES MOST OF US KNOW THAT GAY RIGHTS IS JUST A SCHEMA OF THE GAY AGENDA' GAYNESS IS VIEWED AS A FAITH AND COMING OUT IS BEING BORN AGAIN IF PROMISCUITY WAS PART OF THE GAY FAITH WHAT IS THE HOLY GRAIL IN ITS TRUEST FORM IT IS ANYTHING GOES AND YES THAT INCLUDES EDUCATING READ RECRUITING KIDS THE LATE LESTER KIRKENDALL PROMINENT SEX EDUCATOR FOUNDING BOARD MEMBER OF SIECUS SEX INFORMATION AND EDUCATION COUNCIL OF THE UNITED STATES AND A FORMER PROFESSOR IN THE DEPARTMENT OF FAMILY LIFE AT OREGON STATE UNIVERSITY WROTE IN THE JOURNAL OF SEX EDUCATION AND THERAPY SPRING/SUMMER 1985 THAT SEX EDUCATION PROGRAMS OF THE FUTURE WILL PROBE SEXUAL EXPRESSION WITH SAMESEX PARTNERS AND EVEN ACROSS GENERATIONAL LINES WHEN OUR SENSE OF GUILT IS SUFFICIENTLY DIMINISHED THESE PATTERNS WILL BECOME LEGITIMATE WARDELL POMEROY SEX EDUCATOR KINSEY COAUTHOR AND SIECUS FOUNDING BOARD MEMBER WROTE IN A FORUM VARIATIONS ARTICLE IN 1977 THAT INCEST BETWEEN ADULTS AND YOUNGER CHILDREN CAN PROVE TO BE A SATISFYING AND ENRICHING EXPERIENCE ACCORDING TO A RECENT INTERVIEW HE STILL BELIEVES THIS VERN BULLOUGH WRITING IN FREE INQUIRY IN DEFENSE OF KINSEY'S VIEW THAT THE TRAUMA FROM ADULTCHILD SEX IS A RESULT OF SOCIETAL VALUES SAID IF PENETRATION IS EXCLUDED THIS IS PROBABLY TRUE CLEARLY SOME IN THE GAY AND LESBIAN MOVEMENT AREN'T FAMILIAR WITH ALL OF THIS OR WHERE THEIR THEORETICIANS AND OPINION LEADERS ARE GOING WITH IT THE SCANT DETAILS OFTEN HAVE TO BE DUG OUT OF OBSCURE JOURNALS AND ACADEMIC TREATISES BUT IT'S REAL NEVERTHELESS ONE OF US EE HAS BEEN THROUGH THE SYSTEM AT THE NEW YORK UNIVERSITY HUMAN SEXUALITY PROGRAM INCLUDING THE OVERSEAS SEMINARS WITH LECTURES AND INSTRUCTION BY GAYS AND PROMINENT DUTCH PEDOPHILES IF YOU ARE WONDERING WHY YOU DIDN'T KNOW ANY OF THIS BEFORE WELL RUSH LIMBAUGH WAS RIGHT THE DOMINANT MEDIA CULTURE CONCEALS SOME THINGS THE RADICAL FACE OF GAY ACTIVISM HAS NOT BEEN ON THEIR EXPOSE LIST UNLIKE SAY THE DANGEROUS AGENDA OF THE CHRISTIAN RIGHT TO GET PRAYER INTO PUBLIC SCHOOLS MR EICHEL IS COAUTHOR AND MR MUIR IS CONTRIBUTING AUTHOR EDITOR AND COPUBLISHER OF KINSEY SEX AND FRAUD HUNTINGTON HOUSE 1990 SEE RELATED LETTERS LETTERS TO THE EDITOR TRUE GAY RIGHTS AGENDA END BIGOTRY WSJ MARCH 31 1994 9403180074 YY94 MM03 9403310074 940331 BUSINESS BRIEF AO SMITH CORP COMPANY EXPECTS EARNINGS SALES TO RISE IN 1ST QUARTER AO SMITH CORP SAID ITS EARNINGS FOR THE FIRST QUARTER ARE EXPECTED TO BE 15 MILLION TO 16 MILLION OR 71 CENTS TO 76 CENTS A SHARE IN THE YEAREARLIER QUARTER THE COMPANY EARNED A RECORD 13 MILLION OR 64 CENTS A SHARE SALES FOR THE QUARTER ARE EXPECTED TO RISE AS MUCH AS 15 TO 335 MILLION TO 340 MILLION COMPARED WITH 296 MILLION A YEAR EARLIER AO SMITH WHICH MAKES CAR TRUCK AND FARM EQUIPMENT SAID IN LIGHT OF ITS CONTINUING EARNINGS IMPROVEMENT MANAGEMENT PLANS TO RECOMMEND THAT THE BOARD INCREASE THE QUARTERLY DIVIDEND TO 13 CENTS FROM 11 CENTS A SHARE EFFECTIVE WITH THE MAY PAYMENT THE MILWAUKEE COMPANY SAID IT CONTINUES TO BENEFIT FROM THE IMPROVING DOMESTIC ECONOMY SMITH SAID ITS APPEARS THAT THREE OF ITS LARGEST OPERATING UNITS WILL REPORT HIGHER SALES AND PROFITS 9403310073 940331 MUTUAL FUND SCORECARD / VARIABLE ANNUITY BOND 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 9403310072 940331 LEISURE & ARTS OPERA A GLAMOROUS NEW OTELLO' ARRIVES AT THE MET BY MANUELA HOELTERHOFF NEW YORK THE NEW OTELLO AT THE METROPOLITAN OPERA IS EXPENSIVE LUMINOUS AND GRAND INSPIRED BY PAOLO VERONESE OF THE VENETIAN RENAISSANCE IT BRINGS TO LIFE THE MOOR'S GLITTERING WORLD WITH FURS PEARLS AND BROCADE EVEN EMILIA DESDEMONA'S INEFFECTUAL MAID WEARS A FABULOUS DRESS COPIED FROM A FROCK ON THE WALLS OF THE VILLA BARBARO WHERE VERONESE LEFT SOME OF HIS GREATEST FRESCOES AS DIRECTED BY ELIJAH MOSHINSKY WITH SETS BY MICHAEL YEARGAN COSTUMES BY PETER J HALL AND LIGHTING BY DUANE SCHULER IN HIS DEBUT THIS OTELLO PAYS CLOSE ATTENTION TO THE ORIGINAL INTENTIONS OF VERDI WHO CLUCKED ENDLESSLY OVER THE FIRST PRODUCTION AT LA SCALA IN 1887 LEAVING DETAILED INSTRUCTIONS WITHOUT EVER BEING WILDLY INVENTIVE BUT WHO EXPECTS THIS AT THE MET THE STAGING IS TRADITIONAL IN THE BEST SENSE AVOIDING MEANINGLESS TOPICALITY DO WE REALLY NEED AN EXTRA LAYER OF HISTORICAL OR CULTURAL COMPLEXITY TO MAKE OTELLO ACCEPTABLY POSTMODERN FOR ONCE JUST FOLLOWING THE ORIGINAL STAGE DIRECTIONS HAS MADE BEAUTIFUL SENSE A GREAT HALL IN THE CASTLE IS EXACTLY THAT VERY GREAT THERE ARE COSTLY RED MARBLE COLUMNS FOR THE SPLENDID SCENE WITH COLUMNS VERDI ENVISAGED IN A LETTER WHILE THE PORTICO REQUESTED FOR THE SECOND ACT OPENS OUT TO A FORMAL GARDEN ABOVE THE WATER AND CLOSE TO THE HAZY BLUE SKY IMAGINATIVE USE OF THE MET'S ELEVATOR STAGE BRINGS INTO VIEW A TOWN SQUARE INSPIRED BY VERONESE'S MONUMENTAL PAINTING IN THE LOUVRE THE MARRIAGE AT CANA EVERYTHING IS EXQUISITELY PROPORTIONED AND OCEANS AWAY FROM THE NATURALISTIC CLUTTER THAT SO OFTEN PREVAILS IN THIS HOUSE ESPECIALLY IN THE GHASTLY PRODUCTIONS OF GUNTHER SCHNEIDERSIEMSSEN IN LOFTY HALLS LIKE THESE THE AFFAIRS OF MORTALS TAKE ON ENRICHED SIGNIFICANCE THEY PROVIDE A FRAMEWORK FOR PICTURESQUE ENSEMBLES AND FOR THE TRAGEDY TO UNFOLD THEY EVOKE THE RENAISSANCE WORLD OF VENICE IN HER DAYS OF EMPIRE WHEN CYPRUS WAS A COLONY AND MATCH THE COLORATION AND BREADTH OF VERDI'S PENULTIMATE SCORE IN A MANNER RARE AT THE MET THE LIGHTING IS SUBTLY RESPONSIVE TO CHANGES OF KEY AND MOOD BRINGING A PIERCING INTENSITY TO SCENES OF TURMOIL WHILE CLARIFYING CHARACTER IN OTHERS A GOLDEN AURA CLINGS TO DESDEMONA AS SHE CALMS THE TURBULENT MOOR AND HE SINGS OF HOW HER RADIANCE ILLUMINATES HIS DARKNESS THEN NIGHT FELL THE STARS APPEARED AND CAROL VANESS AND PLACIDO DOMINGO STRUGGLED THROUGH THE LOVE DUET'S RAPTUROUS LINES BEFORE SETTLING DOWN THOUGH NOW A MAN IN THE VALE OF YEARS LIKE OTELLO MR DOMINGO HAS NOT RECENTLY SOUNDED SO URGENTLY EXPRESSIVE AND ACTED WITH SUCH CONVICTION EVEN OTELLO'S SELFCONGRATULATORY ESULTATE WAS DELIVERED WITH EARSHATTERING INTENSITY FROM A GANGPLANK CANNILY POSITIONED NEAR THE PROMPTER'S BOX IT WAS NO SECRET HOW MUCH THE TENOR DISLIKED GREETING EVERYBODY FROM THE DISTANT BOAT IN THE OLD ZEFFIRELLI PRODUCTION TO BE ANY CLOSER TO HIS DEVOTED AUDIENCE MR DOMINGO WOULD HAVE TO STEP OUT OF THE ORCHESTRA PIT WEARING A LIFE PRESERVER IN A ROLE USUALLY RESERVED FOR SLOWMOVING SOPRANOS WITH BLONDE TRESSES AND ITALIANATE VOICES MS VANESS WAS AN UNUSUALLY ANIMATED DESDEMONA BOTH IN HER FEARFILLED WILLOW SONG AND ATHLETIC DASH THROUGH THE BEDROOM AS OTELLO STRUGGLED TO GET A GOOD GRIP ON HER THROAT IT WAS ONE OF SEVERAL BELIEVABLE TOUCHES INTRODUCED BY MR MOSHINSKY WHO DEALT LESS CONVINCINGLY WITH SERGEI LEIFERKUS WHOSE ELEGANT IAGO WAS INCISIVELY SUNG BUT UNDERACTED IN A HOUSE THIS SIZE YOU PROBABLY HAVE TO DO A LITTLE VULGAR MUSTACHETWIRLING WITH RICHARD CROFT A BRIGHTVOICED CASSIO PAUL PLISHKA A DIGNIFIED LODOVICO AND JANE BUNNELL VERY ENERGETIC WITH EMILIA'S SCATTERED LINES AND COMB THIS WAS A VERY FINE CAST THAT RESPONDED ALERTLY TO THE LIVELY BATON OF VALERY GERGIEV IN HIS MET DEBUT THE KIROV'S CHIEF DELIVERED THE KIND OF FAST EMOTIONALLY PERSUASIVE PERFORMANCE WE USED TO ASSOCIATE WITH JAMES LEVINE IT WAS A BIG WEEK FOR LITTLE CYPRUS AT CARNEGIE HALL THANKS TO EVE QUELER AND HER OPERA ORCHESTRA WE GOT TO HEAR A DUSTY OPERA BY DONIZETTI ABOUT THE ISLAND'S FAMOUSLY SAD QUEEN CATERINA CORNARO JUST A TEENAGER WHEN THE VENETIAN OLIGARCHS PACKED HER OFF TO CYPRUS TO MARRY THE KING FOR REASONS OF STATE IN THE LATE 15TH CENTURY CATERINA RULED FOR 15 YEARS AFTER HER HUSBAND WAS POISONED AND HER BABY DIED THEN HER MENTORS FORCED HER RETURN DETHRONING CATERINA IN MACABRE RITUALS THROUGHOUT THE ISLAND VISITORS TO ASOLO NORTH OF VENICE MAY RECALL THE PALAZZO PRISON IN WHICH SHE LIVED FOR YEARS EATING PLENTY TO JUDGE BY A PORTRAIT BY ONE OF THE BELLINIS WITHOUT MUCH CHOICE IN THE MATTER CATERINA HAD LIVED AN OPERATIC LIFE WOULD THAT IT HAD LEFT MORE THAN A DISTANT ECHO ON CATERINA CORNARO WHICH INSTEAD JUST CONFIRMS DONIZETTI'S TALENT FOR WASTING BEAUTIFUL MUSIC ON LAUGHABLE LIBRETTOS A FEAST OF AMIABLE TUNES CLICHES AND IMPROBABLE TURNS OF PLOT IT MAKES A HISTORIC QUEEN SEEM MORE UNREAL THAN A MYTHIC MOOR MONTSERRAT CABALLE USED TO GAMBOL THROUGH THE ROLE YEARS AGO THRILLING ITALIAN AUDIENCES WITH THE SHOWSTOPPING FINALE APRILE MILLO MUST HAVE BEEN WONDERING JUST HOW THE HECK SHE WAS GOING TO GET THROUGH ITS ALARMING COMPLEXITIES WHEN A CAR HIT HER CAB EN ROUTE TO TURIN AIRPORT AND SENT HER TO BED BUT MS QUELER'S QUAINT OPERATIC ADVENTURES ARE USUALLY BLIGHTED OR BRIGHTENED BY SURPRISES AND MARTILE ROWLAND STEPPED IN TO ATTACK THE PART WITH HER SINGULAR MIX OF NERVY HIGH NOTES GAUDY ORNAMENTATION AND HEARTY CHARM IT WAS LEFT TO THAT OLD PRO THE BARITONE RENATO BRUSON TO DELIVER AN ELOQUENT LESSON IN LONGLINED BEL CANTO SINGING AS THE CYPRIOT KING MS QUELER HERSELF HAD A GOOD NIGHT ON THE PODIUM CONDUCTING WITH VIGOR AND CONFIDENCE QUALITIES ENTIRELY LACKING IN TENOR DIEGO D'AURIA WHO CAST INCREASINGLY TERRIFIED LOOKS INTO HIS SCORE I TRUST THOSE WHO DEPLORED OTELLO'S PAGEANTRY ENJOYED THE SWEDISH FOLK OPERA'S DARK AND DECONSTRUCTED DON CARLO AT THE BROOKLYN ACADEMY OF MUSIC'S MAJESTIC THEATER A WEEKEND CHAINED TO A STAKE WATCHING INGMAR BERGMAN MOVIES WOULD BE LIGHT DIVERSION BY COMPARISON PRESS MATERIALS PROVIDED BY BAM WHOSE OPERA PROGRAM BROUGHT THE TROUPE TO BROOKLYN DESCRIBE AN EXPERIMENTAL COMPANY THAT PRODUCES GRAND OPERA IN A MINIATURE WAY ON A SMALL BUDGET IN A TINY MOVIE THEATER A REDUCED ORCHESTRA IS TUCKED AWAY ONSTAGE INSIDE XSHAPED RAMPS BRINGING THE SINGERS VERY CLOSE TO THE AUDIENCE THE SAME SETUP PREVAILED AT BAM IF PRINCESS EBOLI HAD SPIT A LITTLE HARDER SHE COULD HAVE OVERSHOT HER TARGET THE MARQUIS POSA AND HIT THE FIRST ROW RAW PHYSICALITY SEEMS TO BE THE COMPANY STYLE WHEN ELIZABETH AND CARLOS MET IN THE FORESTS OF FONTAINEBLEAU THEY ROLLED ENERGETICALLY DOWN A RAMP EVEN THOUGH THEIR ACQUAINTANCESHIP WAS BRIEF LASTING MINUTES SUCH BEHAVIOR STRIKES ME AS MORE SWEDISH THAN SPANISH ONE REASON TO DISPENSE WITH PERIOD CLUTTER IS TO FOCUS MORE CLEARLY ON CHARACTER AND MOTIVATION BUT THE DIRECTION BY COMPANY FOUNDER CLAES FELLBOM OFTEN ADDED AS MUCH AS IT STRIPPED AWAY WHAT ON EARTH IS GAINED BY DREAMING UP A MISCARRIAGE FOR ELIZABETH AFTER KING PHILIP CALLS HER AN ADULTERESS WE WERE JUST LEFT WONDERING WHO THE FATHER MIGHT BE SINCE EVEN COUNTING OUT THE DODDERING GRAND INQUISITOR THAT STILL LEFT A FEW CANDIDATES INCLUDING PAGE TEOBALDO WHO SOLICITOUSLY HELPED THE WORN WOMAN ONTO A STRETCHER DO VERDI'S CHARACTERS REALLY NEED EMBELLISHMENT THEY'RE HARDLY DULL AS THEY ENDURE SEEING THEIR DREAMS FOR OTHERS AND THEMSELVES SHATTERED BY THE TWINNED FORCES OF CHURCH AND STATE WITHOUT TRADITIONAL POMP THIS CONFLICT IS NOT EASILY DRAMATIZED THOUGH THE MAZELIKE SCAFFOLDING BY SET DESIGNER LARSAKE THESSMAN OFTEN SUGGESTED THE INHUMAN APPARAT THAT CRUSHES THEM THE HERETICS WERE EFFECTIVELY DROPPED INTO SCARY BURNING PITS NEAR THE RAMPS BY THE TIME THE DON CARLO ANDERS LUNDSTROM JOINED THEM HE HAD LONG EXHAUSTED ALL CHRISTIAN MERCY WITH HIS AWKWARD ACTING AND LOUD BLEATING OTHERWISE THIS WAS A WELLREHEARSED ENSEMBLE DOMINATED BY ULRIKA PRECHT A POLISHED EBOLI AND SPLENDIDLY CONDUCTED BY THE COMPANY'S MUSIC DIRECTOR KIRSTEN NERBE WHO DREW AN AMAZINGLY RICH SOUND FROM HER SMALL ORCHESTRA MS NERBE DESERVES TO HAVE A BIGGER NAME AND A BIGGER ORCHESTRA 9403310071 940331 MARKETING & MEDIA NEW RATE RULES COVERING CABLE TV RELEASED BY FCC BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION RELEASED ITS NEW CABLETELEVISION RATE RULES WHICH APPEAR TO BE MORE FAVORABLE TO CABLE OPERATORS THAT OWN MANY SYSTEMS AND TO SYSTEMS THAT SERVE WEALTHY COMMUNITIES THE COMMISSION RELEASED HUNDREDS OF PAGES OF RULES AND OFFICIALS AT A NUMBER OF CABLE COMPANIES SAID IT WOULD TAKE SEVERAL DAYS IF NOT WEEKS TO GAUGE THEIR EFFECT ON SUBSCRIBERS' MONTHLY BILLS AND OPERATORS' OVERALL REVENUES DECKER ANSTROM PRESIDENT OF THE NATIONAL CABLE TELEVISION ASSOCIATION SAID THE TRADE ASSOCIATION PLANS TO FILE SUIT TO OVERTURN THE FCC'S RULES THE RULES HE SAID WILL CUT THE INDUSTRY'S OPTIONS WHEN IT COMES TO INTRODUCING NEW PROGRAMMING NEW SERVICES AND NEW TECHNOLOGIES THOMAS WOLZIEN A CABLE ANALYST WITH SANFORD C BERNSTEIN & CO SAID FCC WORKSHEETS INDICATED THAT BIG MULTIPLESYSTEM OPERATORS SUCH AS TELECOMMUNICATIONS INC FARE BETTER UNDER THE RULES THAN SMALLER LESS GEOGRAPHICALLY DIVERSE OPERATORS SYSTEMS IN RICHER AREAS FARE BETTER THAN THOSE IN POOR COMMUNITIES AND THOSE WITH THE MOST CHANNEL CAPACITY ALSO APPEAR TO BENEFIT HE SAID MR WOLZIEN'S ANALYSIS WAS BASED ON WORKSHEETS THAT WERE INADVERTENTLY RELEASED TO HIS FIRM ON TUESDAY A DAY EARLY THE RULES ADOPTED LAST MONTH REQUIRE CABLE SYSTEMS TO CUT RATES FOR BASIC SERVICE THE TIER THAT INCLUDES BROADCAST TV SIGNALS BY AS MUCH AS 17 FROM THE LEVELS OF SEPT 30 1992 ONCE THE REGULATIONS TAKE EFFECT MAY 15 THE RULES PERMIT OPERATORS TO ADJUST THE RATES UPWARD FOR INFLATION AND THE COST OF ADDING NEW CHANNELS MR WOLZIEN PREDICTED THAT WHEN ALL WAS SAID AND DONE THE IMPACT ON CABLE OPERATORS WOULD BE SUBSTANTIALLY LESS THAN THE 17 FIGURE THE FORMULA REPRESENTS THE WORST CASE HE SAID IT LOOKS LIKE THE STREET HAS OVERREACTED AGAIN HERE THE RULES ALSO PERMIT COMPANIES TO FILE DETAILED COST DATA WITH THE COMMISSION TO JUSTIFY RATES HIGHER THAN THE FORMULA ALLOWS MOREOVER CABLE OPERATORS WITH FEWER THAN 15000 SUBSCRIBERS AND SYSTEMS THAT CURRENTLY CHARGE RELATIVELY LOW PRICES WON'T BE REQUIRED TO CUT THEIR RATES THE FULL 17 AT LEAST FOR THE TIME BEING THE COMMISSION WILL DECIDE WHAT THEIR RATES SHOULD BE AFTER STUDYING PRICES AND COSTS FOR THESE TWO TYPES OF SYSTEMS NEVERTHELESS THE COMMISSION'S DECISION TO TAKE THE SECOND WHACK AT CABLE RATES WITHIN A YEAR HAVE ALREADY HAD AN EFFECT TCI AND BELL ATLANTIC CORP CITED THE COMMISSION'S ACTION LAST MONTH WHEN THEY SCUTTLED PLANS FOR A 32 BILLION MERGER SUBSEQUENTLY JONES INTERCABLE INC HAS RENEGOTIATED ITS 400 MILLION ALLIANCE WITH BCE INC THE CANADIAN TELECOMMUNICATIONS GIANT AND SOUTHWESTERN BELL CORP SAID IT WAS RENEGOTIATING ITS AGREEMENT WITH COX ENTERPRISES INC YESTERDAY'S DOCUMENTS REPRESENT A MAJOR REVISION OF EARLIER CABLE RULES THAT GENERALLY REQUIRED COMPANIES TO CUT THEIR SEPT 30 1992 RATES 10 THOSE RULES HOWEVER ALLOWED MANY CABLE OPERATORS TO RAISE RATES TRIGGERING OUTRAGE AMONG CONSUMER GROUPS AND WASHINGTON LAWMAKERS WHO HAD PASSED THE 1992 CABLE ACT IN REACTION TO A FLOOD OF CONSUMER COMPLAINTS ABOUT SKYROCKETING CABLETV RATES AND POOR SERVICE MARK ROBICHAUX IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9403310069 940331 INTERNATIONAL METALLGESELLSCHAFT TO FILE COUNTERSUIT OVER TRADING LOSSES FRANKFURT METALLGESELLSCHAFT AG INDICATED THAT IT WOULD FILE A COUNTERSUIT AGAINST FORMER US EXECUTIVE W ARTHUR BENSON WHO IS SEEKING 1 BILLION IN COMPENSATORY AND PUNITIVE DAMAGES FOR ALLEGED DEFAMATION AND CIVIL CONSPIRACY CHAIRMAN KAJO NEUKIRCHEN ANNOUNCED THE COMPANY'S RESPONSE DURING A TURBULENT SHAREHOLDERS MEETING IT WOULD BECOME THE LATEST LEGAL TWIST IN A RANCOROUS DISPUTE OVER BLAME FOR THE HUGE OILTRADING LOSSES IN THE US THAT NEARLY BANKRUPTED THE BIG METALS MINING AND ENGINEERING GROUP IN DECEMBER THE COMPANY ALSO DISCLOSED NARROWING OPERATING LOSSES FOR THE FIRST FIVE MONTHS OF THE FISCAL YEAR ENDING SEPT 30 BUT ONLY WHEN EXCLUDING LOSSES AT MG CORP THE GROUP'S CHIEF US UNIT METALLGESELLSCHAFT'S GROUP OPERATING LOSS NARROWED TO 50 MILLION MARKS 298 MILLION IN THE PERIOD FROM 802 MILLION MARKS A YEAR EARLIER BUT SHAREHOLDERS FOCUSED ON THE OILTRADING LOSSES AT MG CORP TOTALING NEARLY 23 BILLION MARKS 137 BILLION FORMER MG CHAIRMAN HEINZ SCHIMMELBUSCH AND MOST OF HIS BOARD WERE FIRED ON DEC 17 MR BENSON PRESIDENT OF MG REFINING & MARKETING INC AND HEAD OF MG'S US OIL TRADING WAS DISMISSED IN FEBRUARY MR BENSON ALLEGED IN A SUIT FILED THIS MONTH AGAINST MG AND BIG SHAREHOLDER DEUTSCHE BANK AG THAT OILTRADING LOSSES OF 770 MILLION MARKS IN THE FISCAL YEAR ENDED SEPTEMBER 1993 AND 15 BILLION MARKS IN THE CURRENT FISCAL YEAR COULD HAVE BEEN AVOIDED IF THE COMPANY'S NEW MANAGEMENT HADN'T INTERFERED WITH HIS HEDGING STRATEGY HIS SUIT ALSO SEEKS DAMAGES FOR PUBLIC DEFAMATION MR BENSON'S SUIT WHICH WOULD BANKRUPT THE COMPANY IF SUCCESSFUL IS ARBITRARY AND LACKING ANY CHANCE OF SUCCESS MR NEUKIRCHEN TOLD SHAREHOLDERS MOREOVER HE SAID WE OURSELVES INTEND TO VIGOROUSLY RAISE CLAIMS AGAINST MR BENSON HE DIDN'T ELABORATE MG ALSO PLANS A DAMAGE SUIT AGAINST MR SCHIMMELBUSCH AND MG'S FORMER FINANCE DIRECTOR MEINHARD FORSTER SHAREHOLDERS OVERWHELMINGLY APPROVED A SLATE OF PROPOSALS BY THE SUPERVISORY BOARD INCLUDING A FORMAL CENSURE OF MESSRS SCHIMMELBUSCH AND FORSTER 9403310068 940331 LETTERS TO THE EDITOR YOUR REPORT CARD STILL GETS AN F NORTH CAROLINA GOV JAMES B HUNT'S MARCH 11 LETTER RESPONDING TO MY JAN 31 EDITORIALPAGE ARTICLE GRADING GOVERNORS WAS A MISFIRE GOV HUNT SAYS THAT THE NORTH CAROLINA GENERAL FUND ROSE BY ONLY 57 IN 1994 NOT THE 87 LISTED IN OUR REPORT THE 87 WAS THE INCREASE ABOVE INFLATION THAT GOV HUNT RECOMMENDED THE AMOUNT HE WANTED TO SPEND AND THE MEASURE WE USED FOR ALL THE GOVERNORS IN THE GRADING BUT EVEN THE 57 ACTUAL EXPENDITURE RISE IN 1994 IS BAD ENOUGH IT IS MORE THAN THREE TIMES THE NATIONAL AVERAGE FOR STATES OF 15 NORTH CAROLINA DOES HAVE A TRIPLEA BOND RATING BUT THAT RATING EXISTED BEFORE MR HUNT BECAME GOVERNOR MR HUNT DID INDEED BALANCE THE BUDGET LAST YEAR BUT SO DID VIRTUALLY ALL OF THE GOVERNORS THANKS TO BALANCEDBUDGET LAWS THE FISCAL PROBLEM FOR NORTH CAROLINA IS NOT DEBT IT'S THAT UNDER BOTH GOV HUNT AND HIS PREDECESSOR STATE GOVERNMENT KEEPS GETTING LARGER AND LARGER IN NORTH CAROLINA GOV HUNT'S FISCAL GRADE OF F WAS UNFORTUNATELY WELLDESERVED 9403310067 940311 LETTERS TO THE EDITOR TEACHER MADE MISTAKE ON OUR REPORT CARD A JAN 31 EDITORIALPAGE CATO INSTITUTE CHART GAVE NORTH CAROLINA AND MY GUBERNATORIAL LEADERSHIP AN F FOR FISCAL RESPONSIBILITY THE CATO INSTITUTE DESERVES THE F FOR EXAMPLE NOT INCLUDED IN THE ARTICLE OR CHART WAS THE FACT THAT THE CATO INSTITUTE REPORTED THE RATE OF REAL GROWTH IN NORTH CAROLINA'S GENERAL FUND OPERATING BUDGET AS 87 WRONG IT WAS 57 THE REPORT'S CRITERIA IS EQUALLY FAULTY IGNORING A 30 CUT IN UNEMPLOYMENT TAXES LAST YEAR WHICH WILL SAVE BUSINESSES 85 MILLION PER YEAR THE REPORT ALSO IGNORED THE FACT THAT NORTH CAROLINA IS REQUIRED BY THE STATE CONSTITUTION TO HAVE A BALANCED BUDGET I HAVE SUBMITTED NINE BALANCED BUDGETS ALTHOUGH THE CATO INSTITUTE CHARACTERIZED MY ADMINISTRATION AS THREATENING TO DISRUPT A DECADE OF STRONG ECONOMIC PERFORMANCE IN NORTH CAROLINA IT CHOSE TO IGNORE THE FACT THAT THE PREVIOUS ADMINISTRATION INCURRED A HIGHER BUDGET GROWTH RATE 78 BETWEEN 1988 AND 1992 CATO ALSO CHOSE TO IGNORE THE SIGNIFICANT SALES AND GASOLINE TAX INCREASES TAXES HAVE NOT GONE UP UNDER MY WATCH FINALLY CATO CHOSE TO IGNORE THE FACT THAT NORTH CAROLINA IS ONE OF ONLY FOUR STATES WITH A TRIPLEA BOND RATING FROM STANDARD & POOR'S CORP MOODY'S INVESTORS SERVICE INC AND FITCH INVESTORS SERVICE SEE RELATED LETTER LETTERS TO THE EDITOR YOUR REPORT CARD STILL GETS AN F WSJ MARCH 31 1994 9403110041 YY94 MM03 9403310066 940331 STARTING OVER ON WELFARE BY AMITAI ETZIONI A FUNNY THING HAPPENED ON THE WAY TO WELFARE REFORM BOTH POLITICAL PARTIES ARE FASHIONING A NEW ENTITLEMENT BILLED AS AN EDUCATION AND TRAINING PERIOD THAT WILL EXTEND DEPENDENCY ON THE DOLE IT MAY NOT SEEM SURPRISING THAT THE DEMOCRATS ARE MOVING TOWARD GRANTING GENEROUS NEW BENEFITS BUT IT'S DISHEARTENING TO SEE REPUBLICANS LEADING THE WAY THE MAIN PLAN OFFICIALLY ON THE TABLE IS ONE ADVANCED BY REPUBLICAN HOUSE MEMBERS THIS IS NOT AN IDLE PROPOSAL BY A FEW RENEGADES BUT THE PRODUCT OF EXTENSIVE DELIBERATION AND CONSULTATION WITHIN THE GOP IT HAS BEEN ENDORSED BY 160 MEMBERS AND IS ACTIVELY CHAMPIONED BY 14 LEADING REPUBLICANS IN THE HOUSE SEVERAL CONSERVATIVE GOP SENATORS ARE PREPARING THEIR OWN PLANS RATHER THAN CUTTING CASH BENEFITS AT ONCE AND THUS INCENTIVIZING WELFARE CLIENTS TO SEEK WORK THE HOUSE GOP BILL PROVIDES FOR A KIND OF SEVERANCE PAY TWO YEARS AT AN EDUCATIONAL WATERING HOLE ANY CERTIFIED TRAINING OR DEGREEGRANTING PROGRAM OF YOUR CHOICE THE DEMANDS ON WELFARE RECIPIENTS FOR THE TWO YEARS ARE HARDLY ONEROUS ATTENDING SOME COURSES 10 HOURS A WEEK EVEN MY LESS INDUSTRIOUS STUDENTS DO BETTER MOREOVER ANYONE CAN JOIN INCLUDING THOSE WHO ARE CURRENTLY EMPLOYED BUT POORLY PAID THOSE WHO WANT TO BE RETRAINED AND THOSE WHO SIMPLY WANT TO TAKE CLASSES ON WESTERN MOVIES OR MUSIC APPRECIATION INSTEAD OF WORKING THIS IS NOT MERELY A HYPOTHETICAL POSSIBILITY WHEN A SIMILAR PROGRAM WAS INTRODUCED IN THE STATE OF WASHINGTON IN 1988 THE NUMBER OF NEW CLIENTS INCREASED BY SOME 6 WHILE OTHER FACTORS MAY HAVE BEEN INVOLVED THERE IS LITTLE DOUBT THAT THE NEW ENTITLEMENT WAS PRIMARILY RESPONSIBLE FOR THE INCREASED INFLUX ONTO THE WELFARE ROLLS IT IS ESPECIALLY TROUBLING THAT THE GOP BILL AS WELL AS A SIMILAR MEASURE DRAFTED BY A GROUP OF MODERATE HILL DEMOCRATS CALLED THE MAINSTREAM FORUM EXEMPTS THOSE IN FULLTIME VOCATIONAL SCHOOLS FROM THE TWOYEARSANDOUT PROVISION THIS MEANS THAT AFTER A WELFARE CLIENT COMPLETES HER TRAINING SAY IN A FOURYEAR FULLTIME VOCATIONAL SCHOOL SHE WOULD BE IMMEDIATELY ENTITLED TO ENROLL AT THE GOVERNMENT'S EXPENSE IN TWO MORE YEARS OF TRAINING TO PREPARE HER FOR A JOB THE ADMINISTRATION BILL WHICH HAS NOT BEEN UNVEILED YET REPORTEDLY WOULD EXTEND THE PARTY FOR WELFARE RECIPIENTS ACCORDING TO PRESS REPORTS THE CLINTON BLUEPRINT FIRST WOULD MAKE TWO YEARS OF JOB TRAINING AVAILABLE TO YOUNGER WELFARE RECIPIENTS AND THEN WOULD GRADUALLY EXTEND THE BENEFITS TO OTHERS ON AFDC IF AS REPORTS INDICATE THE CLINTON PLAN COVERS ONLY 200000 OF THE ROUGHLY FIVE MILLION FAMILIES NOW RECEIVING AFDC ITS IMPACT WILL BE MINIMAL THE GREATEST EFFECT MAY BE TO GIVE OLDER WELFARE RECIPIENTS AN EVEN GREATER INCENTIVE TO WAIT ON THE ROLLS UNTIL THEY CAN COLLECT THE TWOYEAR GOODY ANOTHER PROBLEM IS THAT THE GOP PLAN AND REPORTEDLY THE CLINTON BLUEPRINT IMPLIES THAT THE EDUCATIONAL AND TRAINING PERIOD WILL BE THE SAME FOR ONE AND ALL BUT CLEARLY SOME PEOPLE NEED ONLY A BRIEF COURSE A COMPANY CALLED AMERICA WORKS MANAGES TO PLACE SOME WELFARE CLIENTS IN JOBS AFTER ONLY ONE WEEK OF TRAINING WHILE OTHERS NEED MUCH LONGER IF HOWEVER TWO YEARS IS NOT THE MAXIMUM LENGTH FOR TRAINING AND EDUCATION BUT THE AVERAGE STAY THEN THIS RAISES NEW PROBLEMS SOME WELFARE CLIENTS WOULD PRESUMABLY RECEIVE THE NEW ENTITLEMENT FOR THREE OR FOUR YEARS OR EVEN LONGER IF THAT HAPPENS THE 20TH CENTURY WILL END LONG BEFORE WE END WELFARE AS WE KNOW IT THE MOST FUNDAMENTAL PROBLEM WITH THE CLINTON AND HOUSE GOP PLANS IS THAT THE RECORD SHOWS THAT TRAINING PROFFERED BY GOVERNMENT IS A VERY POOR WAY OF PREPARING WELFARE CLIENTS FOR WORK OFTEN NO JOBS ARE AVAILABLE AT THE END OF THE TRAINING THE WORD GETS AROUND AND PARTICIPANTS HAVE LITTLE MOTIVATION TO STUDY FOR THEIR PART TRAINERS OFTEN DO NOT KNOW WHAT SKILLS EMPLOYERS REALLY REQUIRE AND THEY HAVE LITTLE MOTIVATION TO LEARN SINCE TRAINING PROGRAMS CAN TYPICALLY COLLECT GOVERNMENT FEES WHETHER OR NOT THEY ACTUALLY PLACE THEIR GRADUATES BY FAR THE BEST WAY TO PROCEED IF ONE DOES NOT WISH SIMPLY TO RELY ON THE MARKETPLACE IS TO DEFER THE TRAINING COSTS EMPLOYERS WILL INCUR EVERYONE WHO HIRES PEOPLE OFF THE WELFARE ROLLS AND KEEPS THEM EMPLOYED FOR AT LEAST ONE YEAR WOULD HAVE THE TRAINING COSTS COVERED UP TO SAY 4500 PER CLIENT THIS WOULD KEEP PEOPLE FROM LEAVING WORK TO COLLECT THE NEW EDUCATION ENTITLEMENT TRAINING BY EMPLOYERS ALSO WOULD ENSURE THAT WHAT WELFARE RECIPIENTS LEARN IS APPROPRIATE TO THE NEEDS OF THE MARKETPLACE AND THAT AS A RULE THERE WILL BE WORK AT THE END OF THE LINE THERE WOULD BE AN ADDED BENEFIT AS WELL THE BEST WAY TO DEVELOP WORK SKILLS IS TO WORK THUS HAVING TO SHOW UP AT A PLACE OF EMPLOYMENT EACH DAY IS MUCH MORE LIKELY TO GET PEOPLE OFF WELFARE AND DISCOURAGE OTHERS FROM JOINING THAN THE EDUCATIONAL AND TRAINING PACKAGES BOTH PARTIES SEEM TO FAVOR IT'S TIME FOR THE HOUSE REPUBLICANS AND THE CLINTON TEAM TO GO BACK TO THE DRAWING BOARD THEY SHOULD DROP THEIR BASIC CONCEPT OF A TWOYEAR EDUCATIONAL ENTITLEMENT IF WE ARE TO SPEND BILLIONS ON WELFARE REFORM WE SHOULD AT LEAST END UP WITH PEOPLE WORKING RATHER THAN MERELY WITH MORE TRAINING UNDER THEIR BELTS MR ETZIONI IS THE AUTHOR OF THE SPIRIT OF COMMUNITY CROWN 1993 AND FOUNDER OF THE COMMUNITARIAN NETWORK 9403310065 940331 SMALL STOCK FOCUS STOCKS DROP FOR FIFTH STRAIGHT SESSION RUSSELL 2000 MARKS A LOW FOR THE YEAR BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK LOSSES MOUNTED IN THE SMALLCOMPANY GROUP SENDING PRICES TO THEIR FIFTH STRAIGHT DECLINE AND TO THEIR LOWS FOR THE YEAR IN EXTREMELY ACTIVE TRADING THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION ISSUES FELL 459 OR 179 TO 25245 ITS WORST LEVEL THIS YEAR ITS PREVIOUS 1994 CLOSING LOW WAS 25653 ON JAN 3 BUT THE BAROMETER BOUNCED BACK FROM AN EARLY SLIDE TO 25182 EARLY IN THE SESSION WHEN THE BIG BOARD'S UPTICK RULE KICKED IN AFTER THE DOW JONES INDUSTRIAL AVERAGE FELL MORE THAN 50 POINTS THE DOW INDUSTRIALS LATER WORKED HIGHER TO ABOUT A THREEPOINT DEFICIT BEFORE AGAIN TOPPLING 50 POINTS AND TRIGGERING THE RULE WHICH RESTRICTS PROGRAM TRADING FOR A SECOND TIME THE BLUE CHIP INDICATOR FELL 7227 OR 195 TO 362675 ON THE NASDAQ STOCK MARKET MORE WEAKNESS IN THE TECHNOLOGY GROUP AND FLAGGING FINANCIAL STOCKS HIT THE COMPOSITE INDEX SENDING IT DOWN 1038 OR 137 TO 74491 THE INDEX WHICH FELL AS LOW AS 14 POINTS HIT A YEARTODATE LOW FOR A SECOND STRAIGHT SESSION NASDAQ DECLINING ISSUES OVERWHELMED ADVANCERS 2425 TO 922 ON NASDAQ NATIONAL MARKET VOLUME OF 349445000 SHARES AND TOTAL VOLUME OF 398194000 ITS SECOND HIGHEST ONEDAY TALLY EVER ON TUESDAY NATIONAL MARKET TURNOVER WAS AT 271798700 SHARES AND TOTAL VOLUME WAS 309556000 ALREADYBATTERED EQUITIES FELL UNDER MORE PRESSURE THIS MORNING AFTER INFLUENTIAL LEHMAN BROTHERS INC ANALYST ELAINE GARZARELLI REPORTEDLY TOLD HER SALES FORCE THAT THE STOCK MARKET'S SLIDE SO FAR COULD DEEPEN TO A 10 TO 15 CORRECTION IN ADDITION SEVERAL LARGE BROKERAGE FIRMS IN THE PAST COUPLE OF DAYS HAVE RECOMMENDED THAT INVESTORS CUT THEIR STOCK EXPOSURE AND RAISE THEIR CASH HOLDINGS NAVARRE PLUNGED 2 1/32 OR 31 TO 4 19/32 THE BROOKLYN PARK MINN HOMEENTERTAINMENT PRODUCTS CONCERN SAID IT EXPECTS TO REPORT A FOURTHQUARTER LOSS TODAY OF 13 CENTS TO 17 CENTS A SHARE COMPARED WITH ANALYSTS' EXPECTATIONS OF A ONECENTASHARE PROFIT THE COMPANY REPORTED A LOSS OF FOUR CENTS A SHARE A YEAR EARLIER TITAN WHEEL INTERNATIONAL SLIPPED 1 1/2 TO 27 1/2 ON THE NEW YORK STOCK EXCHANGE THE QUINCY ILL COMPANY SAID ITS DICO SUBSIDIARY REACHED A CONCEPTUAL AGREEMENT WITH THE ENVIRONMENTAL PROTECTION AGENCY FOR RECENT HAZARDOUS WASTE CLEANUP DISAGREEMENTS BETWEEN THE UNIT AND THE AGENCY IN MERGER NEWS DUTY FREE INTERNATIONAL FELL 1 1/4 TO 14 3/4 ON THE BIG BOARD AFTER IT SAID IT HAD ENTERED A DEFINITIVE AGREEMENT TO ACQUIRE INFLIGHT SALES GROUP FOR 60 MILLION IN CASH AND 10 MILLION IN NOTES WITH ADDITIONAL FUTURE PAYMENTS BASED ON REACHING EARNINGS OBJECTIVES DUTY FREE RIDGEFIELD CONN ALSO SAID IT EXPECTS FISCAL FIRSTQUARTER EARNINGS OF BETWEEN EIGHT CENTS AND 11 CENTS A SHARE DUE TO WEAKNESS IN ITS NORTHERN BORDER DIVISION LAST YEAR THE COMPANY POSTED NET INCOME OF 19 CENTS A SHARE FOR THE SAME QUARTER IGI BUENA NJ SLIPPED 3/4 TO 11 1/4 ON THE AMERICAN STOCK EXCHANGE THE ANIMAL HEALTH PRODUCTS COMPANY SAID ITS BOARD APPROVED A PLAN FOR THE TAXFREE SPINOFF OF THE COMPANY'S BIOTECHNOLOGY OPERATIONS TO IGI SHAREHOLDERS SUBJECT TO A FAVORABLE TAX RULING FROM THE IRS AMFED FINANCIAL RENO NEV FELL 2 TO 22 THE COMPANY SAID IT HAS AGREED TO BUY FIRST WESTERN FINANCIAL LAS VEGAS FOR ABOUT 65 MILLION OR 1025 A SHARE FIRST WESTERN JUMPED 1 3/4 TO 9 1/4 MUCH OF THE REST OF THE RATESENSITIVE GROUP GOT PUMMELLED AS BONDS LET GO OF THEIR EARLY GAINS BSB BANCORP BINGHAMTON NY FELL 1 TO 22 3/4 CITFED BANCORP DAYTON OHIO 1 1/4 TO 24 3/4 AND CLASS A SHARES OF FINANCIAL BENEFIT GROUP BOCA RATON FLA SLIPPED 1/8 TO 4 1/8 A NOTABLE GAINER IN A DAY OF DECLINERS WAS SHEFFIELD MEDICAL TECHNOLOGIES WHICH ROSE 1/2 TO 7 1/2 ON THE AMEX THE HOUSTON COMPANY SAID IT RECEIVED A CANADIAN PATENT COVERING THE RED BLOOD CELL RBCCD4 AND LIPOSOMECD4 TECHNOLOGIES TO TREAT HIV INFECTION AND AIDS IN GENERAL PEOPLE ARE JUST CONFUSED AND INDECISIVE SO THEY'RE GETTING OUT OF POSITIONS SAID MIKE RAIL HEAD OF INSTITUTIONAL SALES TRADING AT DONALDSON LUFKIN & JENRETTE BUT HE ADDED THAT SMALLER STOCKS FINISHED ABOVE THEIR SESSION LOWS DUE TO SOME BOTTOMFISHING I THINK THE MARKET HAS ADOPTED A MORE BEARISH STANCE AND WE COULD SEE SOME TESTING OF TRADING BOTTOMS TOMORROW SAID ALAN ACKERMAN EXECUTIVE VICE PRESIDENT AT REICH & CO THERE'S PROBABLY MORE SELLING TO COME BECAUSE INVESTORS APPEAR READY TO MORE RAPIDLY REDUCE THEIR EXPOSURE TO STOCKS THE WILD GUESSING BY ANALYSTS OF HOW BIG THE CORRECTION IS GOING TO BE IS ADDING PRESSURE 9403310064 940331 LEISURE & ARTS FILM A FLAT TALE OF WINTER' TOO MUCH PESCI BY JULIE SALAMON A TALE OF WINTER IS THE STORY OF A BEAUTIFUL WOMAN AND A HANDSOME MAN WHO MEET AND FALL MADLY IN LOVE WHILE THEY ARE ON VACATION AFTER THEY PART SHE DISCOVERS SHE LEFT HIM WITH THE WRONG ADDRESS AND SHE DOESN'T KNOW HOW TO REACH HIM EITHER A COMPLICATION MAKES IT IMPOSSIBLE FOR THEM TO LOCATE ONE ANOTHER THE VARIOUS WAYS ONE MIGHT TRY IN REAL LIFE SO THEY ARE SEPARATED FIVE YEARS LATER THE WOMAN FELICIE CHARLOTTE VERY IS STILL YEARNING FOR HER LOVER WHO HAS NEVER FOUND HER WE HAVE LEARNED THAT HE IS ALSO THE FATHER OF THEIR LITTLE GIRL THOUGH HE DOESN'T KNOW IT THE FILM TAKES PLACE DURING A THREEWEEK PERIOD AROUND CHRISTMAS AT THE MOMENT WHEN FELICIE TESTS HER FAITH IN THE POWER OF LOVE SHE BREAKS UP WITH THE NICE MAN WHO LOVES HER AND MOVES IN WITH THE STRONG MAN WHO LOVES HER THEN SHE DUMPS HIM TOO SHE DECIDES THAT THE ONLY MAN FOR HER IS THE FATHER OF HER CHILD AND SHE'LL BE FAITHFUL TO HIM EVEN IN ABSENTIA IT'S ALL VERY ROMANTIC AND VERY FRENCH FILLED WITH EARNEST CHAT ABOUT RELIGION THE SUPERNATURAL AND THE NATURE OF LOVE YET THE FILM IS CURIOUSLY FLAT CONSIDERING ITS FANCIFUL THEME THAT FELICIE'S STORY IS MEANT TO PARALLEL THE ROMANTIC FANTASY OF SHAKESPEARE'S A WINTER'S TALE STILL THE MONOTONY ON THE ROAD TO FELICIE'S EPIPHANY BECOMES STRANGELY PLEASING LIKE A LULLING RIDE ON A SCENIC HIGHWAY ERIC ROHMER THE FRENCH DIRECTOR AND WRITER HAS CAREFULLY FRAMED FELICIE'S EVERY MOVE SO THAT EVERYTHING SHE DOES SEEMS TO HOLD SOME HIDDEN SIGNIFICANCE EVEN THE WAY SHE SLIPS HER COAT ONTO A HANGER THIS PRECISION REMAINS COMPELLING EVEN AFTER YOU REALIZE FELICIE REALLY ISN'T GOING TO DEVELOP INTO A VERY INTERESTING CHARACTER MR ROHMER SO RELENTLESSLY AND METHODICALLY DETAILS EVEN HER MOST MUNDANE THOUGHTS AND ACTIONS YOU START TO FEEL OBLIGATED TO PAY ATTENTION TO FELICIE'S FATE SHE BECOMES LIKE A FRIEND YOU'VE OUTGROWN BUT WHO CONTINUES TO DRAW YOU INTO HER PROBLEMS SHE IS BOTH FLAKY AND MANIPULATIVE SHE ACTS ON IMPULSE AND THEN IS ANNOYED WHEN THE PEOPLE DISLODGED BY HER MOVE GET UPSET WHEN SHE CHANGES HER MIND AGAIN MR ROHMER HAS FOUND IN MS VERY THE RIGHT ACTRESS TO PLAY FELICIE WITH HER POUTY PRETTINESS AND AIR OF DISTRACTION SHE GIVES THE IMPRESSION THAT SHE IS TOTALLY INDIFFERENT TO HOW PEOPLE MAY REACT TO HER SHE IS BOTH OFFPUTTING AND APPEALING VERY MUCH LIKE A TALE OF WINTER ITSELF JOE PESCI IS THE PERFECT SIDEKICK SHORT AND SQUAT WITH THAT RASPY WHINE OF A VOICE HE'S A WALKING SIGHT GAG A HUMAN CARTOON CHARACTER BUT AFTER WINNING THE OSCAR FOR SUPPORTING ACTOR IN GOODFELLAS AND HIS CRUCIAL PART IN THE HUGELY SUCCESSFUL LETHAL WEAPON FILMS AND THE HOME ALONE MOVIES MR PESCI MET HIS DESTINY HE BECAME A LEADING MAN AND THAT'S A BIT OF A PROBLEM FOR HIS FANS IT WAS NOTICEABLE IN MY COUSIN VINNY AND OBVIOUS IN THE SUPER NOW IT'S BEEN CONFIRMED IN JIMMY HOLLYWOOD A LITTLE PESCI GOES A LONG WAY CERTAINLY MR PESCI CAN'T BE BLAMED FOR ALL THAT IS WRONG WITH JIMMY HOLLYWOOD HE DIDN'T WRITE IT OR DIRECT IT BARRY LEVINSON DID THAT AND IN ALL LIKELIHOOD MR PESCI WASN'T RESPONSIBLE FOR THE GROTESQUE BLOND COLORING IN HIS HAIR YET IT WAS IMPOSSIBLE NOT TO START FEELING ANGRY WITH HIM HOWEVER IRRATIONALLY DURING THE COURSE OF THE FILM I NOTICED THESE BAD FEELINGS JUST AT THE POINT WHEN HIS VOICE BEGAN TO REMIND ME OF THE SQUEAL OF A CARTHEFT ALARM EVEN WHEN THE MOVIE WAS OVER I FELT THE REVERBERATIONS OF THAT VOICE THE WAY YOU KEEP HEARING THAT CARALARM NOISE LONG AFTER IT'S BEEN TURNED OFF POOR MR PESCI HE PROBABLY THOUGHT HE WAS IN GOOD HANDS WITH MR LEVINSON WHO HAS DIRECTED ORIGINAL AND QUIRKY FILMS LIKE DINER AND TIN MEN AS WELL AS BIG MYTHIC PICTURES LIKE THE NATURAL AND BUGSY IT WAS NATURAL THAT HE MIGHT WANT TO OVERLOOK THE UNWATCHABLE TOYS EVERYONE HOPES FOR THE BEST IN HOLLYWOOD PROBABLY NO ONE COULD HAVE PLAYED THE MISBEGOTTEN JIMMY BETTER MR LEVINSON SEEMS TO HAVE WANTED TO MAKE AN LA VERSION OF MIDNIGHT COWBOY AN UPBEAT COMEDY VERSION THE MOVIE IS FILLED WITH MOODY SHOTS OF THE SEAMY SIDE OF HOLLYWOOD WITH THE SUNSET STRIP SUBBING FOR TIMES SQUARE JIMMY WANDERS THROUGH THIS NETHERWORLD WITH HIS HALFWIT FRIEND WILLIAM CHRISTIAN SLATER DREAMING ABOUT BECOMING A STAR HE ADVERTISES HIMSELF ON A BUSSTOP BENCH AND SPENDS HIS DAYS WAITING BY THE RUNDOWN POOL NEXT TO HIS APARTMENT BUILDING THE PHONE DOESN'T RING JIMMY REACTS TO THE FALSE DREAMS OF HOLLYWOOD BY BECOMING A VIDEO VIGILANTE HE AND WILLIAM STALK THE STREETS WAITING TO FILM THIEVES AND DRUG DEALERS THEN TURN THE VIDEOS IN TO THE POLICE THEY BECOME FOLK HEROES FOR A MOMENT THEN MERCIFULLY IT'S OVER I SHOULD HAVE KNOWN BETTER BUT I TOLD MY FOURYEAROLD DAUGHTER ROXIE AND HER FIVEYEAROLD FRIEND HALLY THAT THEY WERE GOING TO LOVE HANS CHRISTIAN ANDERSEN'S THUMBELINA I FELT CONFIDENT BECAUSE A FELLOW CRITIC HAD DISCLOSED THAT HIS SIXYEAROLD BOY DISMISSED THE MOVIE LIKE THIS FOR GIRLS HE SAID NO SWORDS NO FIGHTS MY GIRL COMPANIONS DID LOVE THE IDEA OF THE MOVIE A STORY ABOUT A GIRL THE SIZE OF A THUMB THEY WERE EVEN MORE EXCITED WHEN I TOLD THEM THERE WOULD BE SONGS JUST LIKE IN ALADDIN THE GIRLS WERE GENEROUS THEY ENDURED AT LEAST A HALFHOUR BEFORE THEY WEIGHED IN WITH AN OPINION I WANT TO GO HOME OFFERED ROXIE LOUDLY I DON'T LIKE THIS MOVIE NO LET'S WAIT SAID HALLY WITH THE MASOCHISM OF A BUDDING CRITIC I CAN'T TELL YET IF IT'S REALLY TERRIBLE OR NOT SO WE WAITED YOU CAN PROBABLY GUESS THEIR FINAL VERDICT TWO TINY THUMBS DOWN FOR THUMBELINA VIDEO TIP ALADDIN IS GREAT BUT MOST ADULTS CAN'T WATCH IT A MILLION TIMES THE WAY THEIR KIDS CAN TAKE A BREAK WITH THE MUSIC MAN THE TERRIFIC 1962 ADAPTATION OF MEREDITH WILSON'S SHOW ABOUT A MUSICAL INSTRUMENT SALESMAN IN THE HEARTLAND 9403310063 940331 ISSUE WITH CHINA NOT HUMAN RIGHTS BUT NEXT REGIME BY ARTHUR WALDRON THE DANGER AS THE CLINTON ADMINISTRATION BEGINS TO RECONSTRUCT ITS CHINA POLICY IS THAT IT WILL DISTANCE ITSELF TOO MUCH FROM HUMAN RIGHTS AND MAKE AN ABOUTFACE INTO THE HANDS OF THOSE WHO WANT TO DISCARD THE ISSUE AS AN UNNECESSARY OBSTACLE IN A KEY RELATIONSHIP THE HUMAN RIGHTS APPROACH AFTER ALL INVITES CRITICISM SOME WESTERNERS RIDICULE IT AS HYPOCRITICAL AND IMPRACTICAL WHILE SOME ASIANS ASSAIL IT AS CULTURALLY INSENSITIVE IT CAN LOOK LIKE ANOTHER RIDICULOUS AMERICAN MORAL CRUSADE AND FURTHERMORE IT MAY COST MONEY A SEEMINGLY ATTRACTIVE ALTERNATIVE MOREOVER IS AN OFFER TONE DOWN THE HUMAN RIGHTS TALK AND BEIJING WILL BECOME MORE COOPERATIVE IN EVERYTHING FROM BALANCING TRADE TO SOLVING THE NORTH KOREA PROBLEM THEREFORE IT IS IMPORTANT TO UNDERSTAND THE FUNDAMENTAL SOUNDNESS IN THE CHINESE CASE OF THE IMPULSE BEHIND HUMAN RIGHTS POLICY EVEN WHILE CONCEDING THAT AMERICAN DIPLOMATIC TACTICS HAVE RECENTLY BEEN POOR INDEED HUMAN RIGHTS ARE ON THE AMERICAN POLICY AGENDA NOT BECAUSE OF AMERICANS BUT BECAUSE THE CHINESE PUT THEM THERE BRAVE CHINESE AND NOT INTRUSIVE AND CULTURALLY ALIEN WESTERNERS CREATED THE ISSUE AND IT IS THEY WHO KEEP IT ALIVE THEY DO SO WHETHER FOREIGNERS SUPPORT THEM OR NOT AND THEY HAVE BEEN DOING THIS NOT JUST SINCE THE YEARS THAT LED UP TO THE 1989 TIANANMEN MASSACRE BUT SINCE BEFORE THE TURN OF THIS CENTURY INDEED THE SEARCH FOR A DEMOCRATIC AND CONSTITUTIONAL ORDER TO REPLACE THE MONARCHY IS PERHAPS THE MOST IMPORTANT THEME OF MODERN CHINESE HISTORY IDEAS OF DEMOCRACY WERE ALREADY CLEARLY ARTICULATED IN THE 1910S AND 1920S AND HAD REAL POLITICAL FORCE THE TWO STRONGEST FIGURES IN PRE1949 CHINESE POLITICS YUAN SHIKAI AND CHIANG KAISHEK WERE BOTH BADLY HURT BY WHAT TODAY WOULD BE CALLED THE HUMAN RIGHTS ISSUE MAO TSETUNG AND THE COMMUNISTS CAME TO POWER PROMISING NOT COMMUNIST DICTATORSHIP BUT A NEW DEMOCRACY A SYSTEM THEY CLAIMED WOULD BE FREER THAN CHIANG KAISHEK'S MAO NEVER DELIVERED ON THAT PROMISE BUT THAT DID NOT CHANGE THE ASPIRATIONS OF THE CHINESE AS THE PERIODIC WAVES OF DISSENT UNDER COMMUNISM BEGINNING WITH THE HUNDRED FLOWERS OF THE 1950S MAKE CLEAR THIS LEGACY VALIDATES AMERICAN INTEREST IN HUMAN RIGHTS IN CHINA BY SUGGESTING THAT THE US IS ON THE RIGHT SIDE OF HISTORY BUT IT DOES NOT MEAN THAT THE CURRENT IMPLEMENTATION OF POLICY IS CORRECTLY TARGETED RATHER IT SUGGESTS THE OPPOSITE THE FOCUS ON HUMAN RIGHTS AS CURRENTLY UNDERSTOOD IS IN FACT TOO NARROW AND BASED ON A MISUNDERSTANDING OF THE FUNDAMENTAL CHALLENGE THE US FACES NOW IN CHINA THE ISSUE WITH CHINA IS NOT HUMAN RIGHTS RATHER IT IS REGIME TRANSITION AS IN THE SOVIET UNION THERE WILL BE A TRANSITION IN CHINA FROM ONEMAN AND ONEPARTY RULE TOWARD SOMETHING DIFFERENT PERHAPS BUT NOT CERTAINLY TOWARD A SYSTEM WHERE THE PEOPLE BEGIN GENUINELY TO HAVE THEIR SAY THIS PROCESS IS ALREADY UNDER WAY THE IMMINENT PASSING OF THE FOUNDING GENERATION OF CHINESE COMMUNIST LEADERS WILL ONLY ACCELERATE IT THE US INTEREST IS THAT IT SHOULD MOVE IN A LIBERALIZING AND CONSTITUTIONAL DIRECTION BUT HERE THE US HAS A PROBLEM THE SAME PROBLEM IT HAD WITH THE SOVIET UNION OVERINVESTMENT IN THE CURRENT REGIME KNOWLEDGE OF THE CURRENT COMMUNIST LEADERSHIP AND RELATIONSHIPS WITH IT GOING BACK TWO DECADES ARE THE WORKING CAPITAL OF THOSE AMERICANS WHO MAKE CHINA POLICY NOT SURPRISINGLY THEY TEND TO HOPE THAT THEY WILL GET WHAT THEY WANT FROM THE PEOPLE THEY ALREADY KNOW THE CONCEALED ASSUMPTION OF CURRENT US POLICY IS THAT COMMUNIST POWER IS LIKELY TO REMAIN SUBSTANTIALLY UNMODIFIED IN CHINA PAIRED UNEASILY WITH THIS IS THE HOPE THAT THIS GOVERNMENT CAN BE PERSUADED TO LIBERALIZE AND TREAT ITS PEOPLE BETTER AS WELL AS TO COOPERATE WITH AMERICAN FOREIGN POLICY IN PLACES LIKE KOREA THIS IS SIMILAR TO THE VIEW THE US TOOK OF THE SOVIET UNION NOT LONG AGO MIKHAIL GORBACHEV'S GOVERNMENT THE US BELIEVED WOULD REFORM RUSSIA AND BECOME A PARTNER IN AREAS LIKE ARMS CONTROL THE LESSON OF THE SOVIET UNION HOWEVER IS THAT REAL CHANGE IN HUMAN RIGHTS PROGRESS NOT ONLY IN AREAS SUCH AS THE ENDING OF ARBITRARY ARREST AND IMPRISONMENT BUT ALSO TOWARD THE CREATION OF A MORE REPRESENTATIVE POLITICAL SYSTEM IS UNLIKELY TO COME EXCEPT AS PART OF REGIME CHANGE HUMAN RIGHTS IMPROVE NOT SO MUCH WHEN DICTATORS RELEASE A PRISONER HERE OR TOLERATE A DEMONSTRATION THERE BUT WHEN POLITICAL STRUCTURES CHANGE AND LAWS REPLACE MEN AS ULTIMATE AUTHORITIES CHINA WILL NOT CHANGE IN EXACTLY THE WAYS THE SOVIET UNION DID BUT IN MAGNITUDE AND SIGNIFICANCE THE COMING CHANGES IN CHINA WILL BE COMPARABLE TAKING REGIME TRANSITION AS THE CORE CONCERN WILL MEAN SHIFTING SOMEWHAT THE CURRENT US APPROACH TOWARD CHINA ON MOSTFAVOREDNATION STATUS IT WILL MEAN FINDING A SOLUTION BECAUSE AN ECONOMIC TRAIN WRECK IS NOT GOING TO HELP CHINA TO CHANGE BUT IT WILL ALSO MEAN EXPECTING LESS FROM THE PRESENT LEADERS WHILE THINKING MORE BOLDLY AND REALISTICALLY ABOUT THEIR SUCCESSORS IT WILL MEAN DEVELOPING CONNECTIONS WITH THOSE WHO ARE LIKELY TO PLAY IMPORTANT ROLES FROM DISSIDENTS TO MILITARY COMMANDERS IN SUM IT WILL MEAN TAKING AS THE FUNDAMENTAL CRITERION OF POLICY THIS QUESTION HOW DOES THIS HELP OR HURT THE PROSPECT OF A REGIME SHIFT IN THE DIRECTION OF DEMOCRACY OPEN TALK OF REGIME TRANSITION IN CHINA WOULD STIR UP THE CURRENT GOVERNMENT EVEN MORE THAN HUMAN RIGHTS DOES NOW THAT IS NO REASON THOUGH FOR THE US NOT PRIVATELY TO RECOGNIZE THE REAL CHALLENGE AHEAD AND BEGIN TO THINK ABOUT HOW TO DEAL WITH IT MR WALDRON IS PROFESSOR OF STRATEGY AT THE US NAVAL WAR COLLEGE AND ADJUNCT PROFESSOR OF EAST ASIAN STUDIES AT BROWN UNIVERSITY 9403310062 940331 REVIEW & OUTLOOK EDITORIAL CRIME AND PUNISHMENT WHILE IT MAY BE NOT QUITE A CLASH OF CIVILIZATIONS INTERESTING TENSIONS HAVE ARISEN BETWEEN SINGAPORE'S STERN NOTIONS OF JUSTICE AND THOSE THAT PREVAIL IN PLACES LIKE DAYTON OHIO THIS MINIATURE TEMPEST GOES BEYOND THE CASE OF MICHAEL FAY THE AMERICAN TEENAGER WHO HAS BEEN SENTENCED TO BE FLOGGED WITH A RATTAN CANE FOR VANDALIZING CARS WHOSE CASE HAS PROMPTED A STRONG PROTEST FROM PRESIDENT BILL CLINTON AND WHOSE APPEAL WILL BE HEARD IN SINGAPORE TODAY ONE OF MR FAY'S COHORTS AN AUSTRALIAN TEENAGER JUMPED BAIL AND TODAY OCCUPIES SINGAPORE'S MOSTWANTED LIST ALONG WITH MURDERERS AND DRUG TRAFFICKERS NOW BACK IN AUSTRALIA HIS FATHER HAS BEEN COMPLAINING TO THE PRESS ABOUT THE BARBARITY OF SINGAPORE'S PENAL SYSTEM QUESTIONING THE SINGAPOREAN APPROACH TO CRIME AND PUNISHMENT IS NOT A MONOPOLY OF TENDERMINDED WESTERNERS HOWEVER SOME CHINESE RESIDENTS OF HONG KONG AND MUCH OF THE PRESS ARE AROUSED OVER THE SENTENCE METED OUT TO POON YUENG CHUN A 21YEAROLD WOMAN SCHEDULED TO BE HANGED FOR SMUGGLING 65 KILOGRAMS OF HEROIN THROUGH CHANGI AIRPORT IN A FALSEBOTTOMED BAG MS POON PROTESTS THAT SHE WAS AN UNWITTING MULE AND WHILE WAITING FOR THE SENTENCE TO BE CARRIED OUT HAS BECOME A CHRISTIAN SHE WAS 18 YEARS OLD WHEN ARRESTED HER 17YEAROLD ACCOMPLICE WAS FOUND GUILTY OF THE IDENTICAL CRIME BUT SPARED THE DEATH PENALTY AS A JUVENILE UNLIKE SOME SOCIETIES WHICH MAY TOLERATE ACTS OF VANDALISM A SINGAPORE GOVERNMENT SPOKESMAN SAID IN RESPONSE TO MR CLINTON'S PROTESTS SINGAPORE HAS ITS OWN STANDARDS OF SOCIAL ORDER WE DO NOT HAVE A SITUATION WHERE ACTS OF VANDALISM ARE COMMONPLACE AS IN CITIES LIKE NEW YORK WHERE EVEN POLICE CARS ARE NOT SPARED ACTS OF VANDALS THE SINGAPOREANS WHILE THEY MAY OVERDO IT HAVE A POINT CERTAINLY THE US GOVERNMENT HAS AN INTEREST IN HOW ITS CITIZENS ARE TREATED ABROAD YET WITH AMERICA'S CURRENT CRIME PROBLEM IT'S NOT IN A GOOD POSITION TO LECTURE ON LAW AND ORDER THIS IS WHY NO SMALL NUMBER OF AMERICANS IN SINGAPORE AND AT HOME ACTUALLY SUPPORT MR FAY'S SENTENCE WE'D AGREE INDEED THAT AMERICA HAS A THING OR TWO TO LEARN FROM SINGAPORE AND OTHER ASIAN NATIONS AMERICA STANDS FOR THE RIGHTS OF INDIVIDUALS WHILE THE ASIAN TRADITION ASSERTS THE RIGHTS OF THE COMMUNITY WE HAVE LITTLE DOUBT THAT THE US CRIMINAL JUSTICE SYSTEM HAS GONE TOO FAR AND THAT THE PENDULUM NEEDS TO SWING BACK TOWARD THE COMMUNITY'S RIGHT TO SAFETY NOR WOULD WE CATEGORICALLY RULE OUT CORPORAL PUNISHMENT EVEN SO THERE NEEDS TO BE A SENSE OF PROPORTION NO DOUBT SINGAPOREANS THEMSELVES ARE USING THE FAY AND POON CASES TO RECHECK THEIR BEARINGS ON THIS QUESTION IF PUNISHMENTS ARE WIDELY CONSIDERED DISPROPORTIONATE A SOCIETY RISKS UNDERMINING THE AURA OF LEGITIMACY AROUND ITS USE OF CORRECTIVE VIOLENCE UNDER ANY SYSTEM OF CAPITAL PUNISHMENT THERE WILL ALWAYS BE EXCEPTIONAL INDIVIDUAL CASES AS MS POON'S APPEARS TO BE THERE SHOULD BE ROOM FOR EXECUTIVE CLEMENCY AND MR FAY WAS CONVICTED ONLY OF EGGING AND SPRAYPAINTING CARS EVEN IN A SOCIETY THAT PRACTICES CANING IS THIS A CASE FOR SIX STROKES CANING IS APPLIED TO THE BARE BUTTOCKS AND REPORTEDLY LEAVES A BLOODY MESS FOLLOWED BY PERMANENT SCARS THE JOURNAL'S G PIERRE GOAD TWO WEEKS AGO QUOTED A 1974 INTERVIEW WITH SINGAPORE'S THENDIRECTOR OF PRISONS WHO SAID AT THE END OF THE CANING THOSE WHO RECEIVE MORE THAN THREE STROKES WILL BE IN A STATE OF SHOCK MANY WILL COLLAPSE BUT THE MEDICAL OFFICER AND HIS TEAM ARE ON HAND TO REVIVE THEM PERHAPS THE PROSPECT OF A GOOD FLOGGING DOES DETER A FEW MALEFACTORS AT THE MARGIN BUT HANGING JUDGES AND RATTAN WHIPS CAN'T BE ANYTHING MORE THAN A CATCHMENT FOR THE ANTISOCIAL MINORITY THAT ANY COMMUNITY WILL SPAWN EVEN SINGAPORE MUST ULTIMATELY RELY ON SOMETHING MORE THAN A VIGILANT POLICE FORCE TO KEEP THE MAJORITY IN LINE AND PREVENT COMMUNAL LIFE FROM DISSOLVING INTO A PREDATORY SCRAMBLE ANY SOCIETY THAT FLOGS CAN HARDLY BE ACCUSED OF SHIRKING ITS RESPONSIBILITY TO REINFORCE LESSONS ABOUT ORDER SELFCONTROL AND OBEDIENCE TO PROPER AUTHORITY BUT THESE LESSONS MUST FIRST AND MOST EFFECTIVELY BE INCULCATED IN THE HOME AND FAMILY WE CAN CERTAINLY UNDERSTAND WHY SOME SINGAPOREANS ARE IN NO MOOD TO TAKE OUTSIDE LECTURES ON THIS ISSUE BUT THEY MAY NOT RECOGNIZE HOW MUCH THE AMERICAN DEBATE HAS MOVED IN THEIR DIRECTION OVER THE PAST FEW YEARS FEW DOUBT A CONNECTION BETWEEN CRIME AND FAMILY BREAKDOWN AND MANY WORRY THAT ILLEGITIMACY RATES ARE RISING IN ALL STRATA OF SOCIETY SO WE'D OFFER THE UNSOLICITED ADVICE THAT CANING IS PROBABLY NOT WHAT STANDS BETWEEN SINGAPORE AND THE COLLAPSE OF CIVILIZATION LIKEWISE WE DOUBT THAT ANY AMOUNT OF RATTAN APPLIED TO ANY NUMBER OF BUTTOCKS CAN SOLVE THE PROBLEMS OF A SOCIETY THAT SOMEHOW PRODUCES A CLASS OF YOUNGSTERS WHO NEVER KNOW THE LOVE AND DISCIPLINE OF A FUNCTIONING FAMILY 9403310060 940331 LEISURE & ARTS BOOKSHELF HISTORY'S LATEST FAD BY DAVID SHRIBMAN THERE ARE FADS IN HISTORY AS WELL AS IN FASHION AND A NEW ONE HAS HIT THE ACADEMIC WORLD YOU DON'T WRITE ABOUT HISTORY ANYMORE INSTEAD YOU WRITE ABOUT MEMORY YOU WRITE ABOUT WHAT PEOPLE THINK HISTORY IS SOMETIMES YOU EVEN DRESS IT UP IN FANCY CLOTHES AND TALK ABOUT THE USES OF HISTORY THIS IMPULSE HAS BEEN STIRRING AMONG AMERICAN HISTORIANS FOR SOME TIME AND IT SURFACED TWO YEARS AGO WITH MICHAEL KAMMEN'S IMPENETRABLE MYSTIC CHORDS OF MEMORY A CORNELL HISTORIAN'S LABORIOUS EFFORT TO SHOW HOW AMERICAN HISTORY HAS BEEN REMEMBERED AND USED OVER THE YEARS MR KAMMEN'S TITLE CAME FROM THE LAST SENTENCE OF LINCOLN'S FIRST INAUGURAL ADDRESS SO IT IS MAYBE NO SURPRISE THAT THE NEXT ENTRY IN THE MEMORY DERBY SHOULD BE ABOUT LINCOLN HIMSELF MERRILL D PETERSON A UNIVERSITY OF VIRGINIA HISTORIAN HAS TAKEN UP THE CHALLENGE WITH HIS NEW VOLUME LINCOLN IN AMERICAN MEMORY OXFORD 482 PAGES 30 IT IS TIMELY NOT BECAUSE OF ANY NEW REVELATIONS BUT BECAUSE LINCOLN SEEMS TO BE SLIPPING OUT OF AMERICAN MEMORY ENTIRELY YOU MAY HAVE NOTICED THAT FEB 12 WHICH USED TO BE CELEBRATED AS LINCOLN'S BIRTHDAY PASSED ALMOST WITHOUT NOTICE THIS YEAR YOU ALSO MAY HAVE NOTICED HOW FEW EMOTIONS WERE STIRRED BY THIS YEAR'S ANTISEPTIC CELEBRATION OF PRESIDENT'S DAY WHICH CAME A DAY BEFORE GEORGE WASHINGTON'S BIRTHDAY WAS MARKED MOSTLY BY AUTOMOBILE HUCKSTERS AND SEEMED TO PUT ABRAHAM LINCOLN JAMES GARFIELD CHESTER ARTHUR BENJAMIN HARRISON GEORGE BUSH AND BILL CLINTON ALL ON THE SAME LEVEL IN TRUTH LINCOLN IS ONE OF THE MYTHICAL CHARACTERS IN THE AMERICAN STORY A COLLEGE STUDENT ONCE WROTE THAT LINCOLN WAS BORN IN A LOG CABIN THAT HE BUILT WITH HIS OWN HANDS STENTORIAN ORATORS DECLAIMING ABOUT SOME PROBLEM FACING THE REPUBLIC ROUTINELY WONDER ALOUD WHAT LINCOLN WOULD DO GEORGE W NORRIS ONCE ANSWERED THE QUESTION BY SAYING IN THE MIDDLE OF THE GREAT DEPRESSION LINCOLN WOULD BE JUST LIKE ME HE WOULDN'T KNOW WHAT THE HELL TO DO BUT OF ALL THE CANT SAID IN CONNECTION WITH ABRAHAM LINCOLN ONE PHRASE RINGS TRUE IT WAS UTTERED BY EDWIN M STANTON THE SECRETARY OF WAR WHO HAD BEEN SITTING VIGIL AT THE FOOT OF WHAT TURNED OUT TO BE LINCOLN'S DEATHBED LINCOLN'S PASTOR SAID A PRAYER AND THEN STANTON CRYING SAID NOW HE BELONGS TO THE AGES HE DOES AND IN THIS VOLUME MR PETERSON WHO EARLIER WROTE ABOUT THE USES AND ABUSES OF THE JEFFERSONIAN IMAGE LOOKS AT HOW THE AGES HAVE TREATED A MAN WHO SEEMS TO EMBODY ALL OF OUR HISTORY AND MYTHS HE SPLIT RAILS RODE A FLATBOAT KEPT A COUNTRY STORE STUDIED AND PRACTICED THE LAW AND THEN PRACTICED THE POLITICAL ARTS WITH PECULIAR RUSTIC GRACE A MINORITY CHIEF EXECUTIVE AND A WAR PRESIDENT HE SPOKE TO AMERICA'S SELFIMAGE ITS SENSE OF DESTINY AND ITS MORAL CORE LEAVING BEHIND HIM NOT ONLY THE MEMORIES THAT MR PETERSON EXAMINES BUT SOME REMARKABLE HISTORICAL DOCUMENTS INCLUDING THE GETTYSBURG ADDRESS THE EMANCIPATION PROCLAMATION AND THE SECOND INAUGURAL ADDRESS TAKEN TOGETHER THEY ARE AS GOOD A SUMMARY OF AMERICAN IDEALS AS ANY THE MEMORYMAKING AND THE MYTHMAKING BEGAN AT LINCOLN'S DEATH SEALED IN THE NATION'S CONSCIOUSNESS BY THE 20DAY PERIOD THAT BEGAN WITH HIS FUNERAL CONTINUED AS HIS BODY TRAVELED THROUGH THE HEART OF THE COUNTRY BY TRAIN AND CONCLUDED WITH HIS BURIAL IN SPRINGFIELD ILL RALPH WALDO EMERSON CELEBRATED LINCOLN AS AN ABORIGINAL MAN PURELY NATURAL PURELY AMERICAN WILLIAM CULLEN BRYANT WROTE OF THE ANGUISH OF A LAND/THAT SHOOK WITH HORROR AT THY FALL HIS LIFE AND HIS REMARKS TOOK ON LIVES OF THEIR OWN MR PETERSON FINDS NO CREDIBLE EVIDENCE FOR EXAMPLE THAT ABE EVER SAID YOU CAN FOOL ALL OF THE PEOPLE SOME OF THE TIME BUT YOU CAN'T FOOL ALL OF THE PEOPLE ALL OF THE TIME AND YET LINCOLN HAS BEEN USED TO FOOL A LOT OF PEOPLE A LOT OF TIMES HE HAS BEEN INVOKED BY FIGURES FROM KARL MARX TO HERBERT HOOVER AND FROM EARL BROWDER THE COMMUNIST LEADER TO SEN THEODORE G BILBO OF MISSISSIPPI THE WHITE SUPREMACIST AND LINCOLN HAS BEEN USED FOR MANIFOLD CAUSES INCLUDING CIVILSERVICE REFORM A HIGH TARIFF OPPOSITION TO THE WAR IN THE PHILIPPINES SUPPORT FOR THE REPUBLICANS IN THE SPANISH CIVIL WAR AND THE ADVANCEMENT OF CIVIL RIGHTS HERE AND AROUND THE WORLD BUT MR PETERSON ARGUES THAT LINCOLN HAD A REAL PHILOSOPHICAL LEGACY THE SUPREMACY OF THE CENTRAL GOVERNMENT AND THE EXTENSION OF HUMAN FREEDOMS IN HIS CONCEPTION MR PETERSON WRITES THE CONSTITUTION BECAME THE INSTRUMENT FOR REALIZING THE PROMISES OF THE DECLARATION OF INDEPENDENCE BLACK SCHOLARS AND COMMENTATORS HAVE POINTED OUT THAT LINCOLN SHARED MANY OF THE COMMON WHITE PREJUDICES OF HIS TIME AND EVEN SAID THAT BLACKS WERE UNASSIMILABLE ALIENS THERE WERE ACTIONS HE PUT OFF LIKE THE EMANCIPATION PROCLAMATION AND OTHERS HE OUGHT TO HAVE PERFORMED BUT DIDN'T HE WAS CONSTRAINED BY POLITICS AND THE LIMITS OF HIS OWN IMAGINATION AND SENSE OF DARING BUT BY HIS CONDUCT OF THE CIVIL WAR AND WITH HIS VISION OF THE NATION THAT WOULD BE FORMED IN THAT CRUCIBLE HE DID ONE IMPORTANT THING HE MADE THE FUTURE POSSIBLE OF ALL THE MEMORIES OF LINCOLN THAT IS THE MOST ENDURING MR SHRIBMAN IS WASHINGTON BUREAU CHIEF OF THE BOSTON GLOBE 9403310059 940331 CREDIT MARKETS LONGTERM TREASURY BOND PRICES FALL AGAIN YIELD ON BENCHMARK 30YEAR ISSUE HITS 710 BY THOMAS D LAURICELLA AND ABBY SCHULTZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRICES OF LONGERTERM TREASURY SECURITIES CONTINUED TO DROP WHILE SHORTER ISSUES FOUND SOME SUPPORT PARTLY FROM CASH FLEEING THE STOCK MARKET THE BENCHMARK 30YEAR TREASURY BOND DROPPED NEARLY 1/2 POINT TO 89 13/32 TO YIELD 710 UP FROM 706 TUESDAY AT THE SAME TIME THE PRICE OF THE TWOYEAR NOTE ROSE 1/32 TO 99 29/32 TO YIELD 516 DOWN FROM 518 THE MARKET BEGAN THE DAY MOVING HIGHER BUT BY LATE MORNING PRICES COLLAPSED THERE'S A BUYERS' STRIKE GOING ON SAID VAN SILER A MANAGING PARTNER AT RJ WALLS & CO AS HAS BEEN THE CASE SO FAR THIS WEEK THE SELLOFF WAS NOT SPARKED BY ANY PARTICULAR NEWS THE MARKET HAS BEEN TRADING ON NOTHING BUT FEAR MR SILER SAID THAT'S WHY PRICE LEVELS AND YIELDS DON'T MAKE A DIFFERENCE BEHIND YESTERDAY'S DECLINE IN THE TREASURY MARKET WAS SELLING TIED TO OTHER FIXEDINCOME MARKETS ESPECIALLY MORTGAGEBACKED SECURITIES THE FIRST WAVE OF SELLING TOOK PLACE AT MIDMORNING BUT PRICES WERE ABLE TO STABILIZE DURING THE AFTERNOON BUT AS THE SESSION WORE ON A RENEWED BURST OF SELLING SENT PRICES TO THEIR LOWS WHERE THEY FINISHED THE DAY MUCH OF THE SELLING IN THE TREASURY MARKET APPEARED TO ORIGINATE IN THE MORTGAGEBACKED SECURITIES MARKET WHICH HAS TAKEN A POUNDING IN RECENT WEEKS IN ADDITION RISING LONGTERM INTEREST RATES HAVE CAUSED A SLOWING OF PREPAYMENTS ON THE UNDERLYING MORTGAGES WHICH IN TURN HAS LED TO A LENGTHENING OF EFFECTIVE MATURITIES ON MORTGAGEBACKED SECURITIES PORTFOLIO MANAGERS LOOKING TO OFFSET THAT TREND UNLOADED MORTGAGEBACKED SECURITIES ALONG WITH LONGERTERM TREASURYS THE MORTGAGE SECURITIES WERE PUSHED LOWER WHEN THE MARKET GOT HIT WITH EXTENSIVE BID LISTS OF UNWANTED SECURITIES FROM ASKIN CAPITAL MANAGEMENT ASKIN RUNS TWO MARKETNEUTRAL MORTGAGE FUNDS AND ONE NEW MARKETDIRECTIONAL MORTGAGE HEDGE FUND A DIRECTIONAL FUND TAKES EITHER A PREDOMINATELY BULLISH OR BEARISH VIEW OF THE MARKET MARKETNEUTRAL FUNDS BALANCE BULLISH WITH BEARISH INVESTMENTS THE FUNDS ERRED MARKET OBSERVERS SAY BY TAKING LEVERAGED BETS ON HIGHLY ILLIQUID DERIVATIVE INSTRUMENTS TO CREATE A MARKETNEUTRAL FUND WITH SUCH INVESTMENTS WOULD BE NEARLY IMPOSSIBLE AN OFFICIAL AT A MAJOR PRIMARY DEALER SAYS ASKIN'S PORTFOLIOS REPORTEDLY HAVE DROPPED DRASTICALLY IN VALUE SINCE THE BEGINNING OF THE YEAR AS REPORTED YESTERDAY IN THIS NEWSPAPER DAVID ASKIN DISCLOSED TO INVESTORS LAST FRIDAY THAT THE VALUE OF ONE 170 MILLION PORTFOLIO WAS DOWN 2189 IN FEBRUARY NOT 15 AS HE INITIALLY DISCLOSED WALL STREET DEALERS ALSO REPORTEDLY WERE PRESSURING THE FIRM TO MEET MARGIN CALLS AGAINST THE WEAKENING PORTFOLIOS MARGIN DEPOSITS ARE COLLATERAL AGAINST POTENTIAL LOSSES DEALERS ASK FOR MONEY AS COLLATERAL A MARGIN CALL WHEN LOSSES INCREASE ACCORDING TO ONE OF ASKIN'S INVESTORS THESE MARGIN CALLS INCREASED ON TUESDAY PUTTING ADDITIONAL PRESSURE ON THE FIRM TO LIQUIDATE ITS PORTFOLIO ACCORDING TO AN OFFICIAL AT A PRIMARY DEALERSHIP EVERY FIRM ON WALL STREET HAS A BID LIST OF THE ASKIN FUND HOLDINGS WHICH IS PUTTING ADDITIONAL PRESSURE ON VARIOUS MORTGAGE DERIVATIVES EVERYTHING'S FOR SALE THE OFFICIAL SAID BRUCE FRUMERMAN A SPOKESMAN FOR ASKIN SAID THE FIRM IS STILL NEGOTIATING THE VALUATION OF ITS HOLDINGS THE FUTURE OF THE FUNDS REMAINS UNCLEAR AT THIS POINT MR FRUMERMAN ADDED OVERHANGING ALL THE BOND MARKETS ARE EXPECTATIONS THAT THE FEDERAL RESERVE WILL CONTINUE TO PUSH SHORTTERM INTEREST RATES HIGHER THE FED HAS ALREADY RAISED THE FEDERAL FUNDS RATE WHICH IS THE RATE AT WHICH BANKS LEND EACH OTHER MONEY BY HALF A PERCENTAGE POINT SINCE EARLY FEBRUARY TO 3 1/2 MOST ANALYSTS BELIEVE THE FED WILL TAKE THE FUNDS RATE TO AT LEAST 4 UNTIL INVESTORS SEE THE FUNDS RATE AT A HIGHER LEVEL THEY ARE GOING TO BE AFRAID TO COMMIT SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES SOME OF THE SELLING YESTERDAY APPEARED TO BE RELATED TO CONTINUED ADJUSTMENT OF POSITIONS AHEAD OF THE END OF THE FIRST QUARTER THERE HAS BEEN SOME CLEARING OF POSITIONS FOR QUARTEREND THAT HAS BEEN MAKING THE SITUATION WORSE SAID CARY LEAHEY SENIOR FINANCIAL ECONOMIST AT LEHMAN GOVERNMENT SECURITIES FUND MANAGERS IN PARTICULAR HAVE BEEN TRYING TO SHORTEN THE DURATIONS OF THEIR PORTFOLIOS BEFORE THEIR POSITIONS ARE MARKED TODAY DURATION IS A MEASURE OF PRICE SENSITIVITY TO INTEREST RATE CHANGES SO THE LONGER THE DURATION OF A PORTFOLIO THE GREATER THE LOSSES ARE WHEN YIELDS RISE MEANWHILE SOME CASH WORKED ITS WAY INTO SHORTTERM TREASURY SECURITIES WHOSE PRICES ARE LESS VULNERABLE TO RISING INTEREST RATES THAN LONGTERM TREASURY SECURITIES ALSO SUPPORTING THE FRONT END WAS SOME MOVEMENT OF CASH OUT OF THE BATTERED STOCK MARKET INTO THE TREASURY BILL SECTOR PLAYERS SAID THE COUPONEQUIVALENT YIELDS OF TREASURY SECURITIES MATURING IN A YEAR OR LESS FELL 001 TO 005 PERCENTAGE POINT YESTERDAY IN REACTION TO THE BUYING PARTICIPANTS CONTINUED TO SAY THAT WHEN YIELDS ARE COMPARED WITH THE ECONOMIC FUNDAMENTALS THE MARKET LOOKS ATTRACTIVE ASSUMING THAT INFLATION STAYS CONTAINED NEAR A 3 RATE EVENTUALLY THERE IS GOING TO BE THE REALIZATION THAT A 7 OR 7 1/4 YIELD ON A BOND REPRESENTS THE BEST VALUE OF ANYTHING ON THE PLANET SAID MR SILER OF RJ WALLS BUT WITH SENTIMENT SO POOR THERE IS LITTLE PRESSURE TO JUMP IN MR SILER AND OTHERS SAID THERE IS A LOT OF CASH THAT HAS PILED UP ON THE SIDELINES BUT THAT CASH WILL NOT BE DEPLOYED UNTIL AFTER WE SEE SOME STABILIZATION SAID MR LEUZZI OF WARBURG INVESTORS WON'T STEP IN FRONT OF AN ONCOMING TRAIN BUT THEY WILL CHASE AFTER IT ONCE ITS LEFT THE STATION HE SAID INVESTORS HAVE ALSO BEEN RELUCTANT TO PUT NEW CASH TO WORK BEFORE THEY SEE WHAT FRIDAY'S EMPLOYMENT REPORT WILL HOLD TRADERS ARE BRACING FOR A STRONG SET OF DATA WITH NONFARM PAYROLL EMPLOYMENT EXPECTED TO RISE BY AT LEAST 250000 FOR MARCH THE JUNK BOND MARKET GOT SLAMMED AGAIN SPURRING MORE DELAYS IN PLANNED ISSUES THE LATEST DELAYS INVOLVED DIAL CALL COMMUNICATIONS INC'S 300 MILLION PROCEEDS OFFERING AND THRIFTY PAYLESS INC'S 600 MILLION TWOPART DEAL ACCORDING TO MARKET SOURCES DIAL CALL IS AN ATLANTABASED TELECOMMUNICATIONS CONCERN THRIFTY A WEST COAST DRUGSTORE CHAIN IS A UNIT OF TPH CORP BOTH ISSUERS HOPE TO SELL THE DEBT NEXT WEEK IF THE MARKET CALMS DOWN SOURCES ADDED THE JUNK BOND NEWISSUE CALENDAR HAS BEEN DISRUPTED BY RISING YIELDS IN THE SECONDARY MARKET TUESDAY NORTHWEST AIRLINES SAID IT WAS POSTPONING A 350 MILLION JUNK BOND OFFERING BECAUSE OF DIFFICULT MARKET CONDITIONS YIELDS ROSE AGAIN YESTERDAY AS PRICES DROPPED ABOUT 15 POINTS OR ABOUT 15 FOR A BOND WITH 1000 FACE VALUE PRICES FOR MANY JUNK BONDS ARE OFF ABOUT FIVE POINTS SO FAR THIS WEEK AND ABOUT NINE POINTS FOR THE PAST MONTH TRADERS SAID PEOPLE ARE JUST STUNNED SAID ONE TRADER WHO NOTED DEALERS LIQUIDATING POSITIONS DURING YESTERDAY'S SESSION HOWEVER HE HASN'T YET SEEN SELLING FROM MUTUAL FUNDS BECAUSE OF REDEMPTIONS TRADING IN THE INVESTMENTGRADE MARKET WAS EXTREMELY LIGHT AS YIELD SPREADS WIDENED BY 002 TO 003 PERCENTAGE POINT IN SYMPATHY WITH PRICE DECLINES IN THE TREASURY AND STOCK MARKETS DIAL CALL CHIEF FINANCIAL OFFICER TOM GRINA CONFIRMED THAT THE COMPANY WAS AWAITING MORE FAVORABLE MARKET CONDITIONS WE'RE REVIEWING THE SITUATION ON A DAYTODAY BASIS HOPING FOR SOME THINGS TO SETTLE DOWN HE SAID HE ADDED THAT THE DEBT LIKELY WOULD BE SOLD SOME TIME INTO NEXT WEEK THRIFTY OFFICIALS DIDN'T RETURN TELEPHONE CALLS SELLERS POUNCED ON MUNICIPAL BONDS FORCING MOST PRICES DOWN ABOUT A POINT TRADING WAS BRISK AND DISORDERLY AS MARKET PARTICIPANTS SCRAMBLED TO UNLOAD MORE BONDS AFTER DUMPING MUNIS EARLIER THIS WEEK TRADERS SAID IN LATE TRADING THE ORLANDO UTILITIES COMMISSION FLA 5 OF 2020 REFUNDING BONDS WERE DOWN ABOUT 1 1/2 POINT FROM TUESDAY AFTERNOON AT 84 YIELDING 619 THE SELLING WASN'T THE ONLY DISCOURAGING DEVELOPMENT STANDARD & POOR'S BLUE LIST OF CURRENT MUNICIPAL SECONDARY MARKET OFFERINGS WHICH GIVES AN INDICATION OF DEALER INVENTORIES AND THE MUNI MARKET'S GENERAL CONDITION CLIMBED NEARLY 106 MILLION TUESDAY TO 199 BILLION WITH MUNI PRICES PLUMMETING ON JITTERS ABOUT THE FEDERAL RESERVE'S TIGHTENING MODE DEALER INVENTORIES ARE BUILDING AS INVESTORS FLEE THE MARKET MORTGAGE SECURITIES CLOSED DOWN ABOUT A THIRD OF A POINT IN VOLATILE DEALINGS AMONG 75 ISSUES FOR APRIL DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION FELL 12/32 TO 98 10/32 FEDERAL HOME LOAN MORTGAGE CORP GOLDS EASED 11/32 TO 98 31/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION GAVE UP 11/32 TO 98 24/32 9403310058 940331 WHO'S NEWS NEW CHAIRMAN AT SPECTRUM WILL STEP DOWN BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL MANHASSET NY SPECTRUM INFORMATION TECHNOLOGIES INC'S REVOLVING DOOR CONTINUED TO WHIRL WITH CHAIRMAN AND CHIEF EXECUTIVE OFFICER EDWARD W MASKALY SAYING HE WILL RESIGN ONCE A REPLACEMENT IS FOUND MR MASKALY HAD ACCEPTED THE CHIEF EXECUTIVE JOB A MERE WEEK AGO FROM FORMER CHAIRMAN PETER CASERTA WHO TOOK A TEMPORARY LEAVE OF ABSENCE TO CLEAR HIS NAME AMID FEDERAL INVESTIGATIONS IN A STATEMENT MR MASKALY CITED MEDIA ATTACKS FOR HIS DECISION AND SUGGESTED THAT HE HAD FAILED TO RESTORE THE COMPANY'S CREDIBILITY WITH SHAREHOLDERS AND THE PUBLIC HE DIDN'T ELABORATE ON THE MEDIA ATTACKS HOWEVER SPECTRUM HAS BEEN REELING UNDER A HOST OF TROUBLES LATELY LEGAL DIFFICULTIES PROMPTED SIX BOARD MEMBERS TO QUIT THIS WEEK INCLUDING MR CASERTA AND A SEVENTH BOARD MEMBER HAS SAID HE PLANS TO RESIGN THE COMPANY IS FACED WITH A FEDERAL INVESTIGATION INTO ALLEGED STOCK HYPING AND LAST WEEK FEDERAL POSTAL INSPECTORS RAIDED AN AFFILIATED FINANCIALSERVICES FIRM PARADIGM GROUP INC AND CHARGED FIVE EMPLOYEES WITH WIRE AND MAIL FRAUD PARADIGM WAS FORMERLY RUN BY MR CASERTA AND TWO OF THE FOUR INDIVIDUALS ARRESTED IN THE RAID HAVE CLOSE TIES TO SPECTRUM MR MASKALY WAS MENTIONED IN THE FEDERAL INVESTIGATORS' COMPLAINT IN THAT CASE MR MASKALY'S ANNOUNCEMENT CAME AS A SURPRISE A SPECTRUM SPOKESMAN SAID THE COMPANY HAS BEEN A LIGHTNING ROD FOR CRITICISM AND MASKALY REALIZED HE'S NOT A PERMANENT SOLUTION FOR WHAT THE FIRM NEEDS SPECTRUM'S STOCK DROPPED 25 CENTS OR 85 TO CLOSE AT 269 IN NASDAQ TRADING YESTERDAY SPECTRUM'S CHIEF ASSETS ARE FOUR PATENTS THAT IT OWNS AS WELL AS FIVE OTHERS IT LICENSED MAINLY COVERING HOW COMPUTER DATA CAN BE SENT OVER THE CELLULARPHONE NETWORK ALTHOUGH SPECTRUM MUST NOW STRUGGLE WITH A MUCH LEANER TOP MANAGEMENT STAFF THE RESIGNATION OF SEVERAL OFFICERS COULD ALLOW THE COMPANY TO START WITH A CLEAN SLATE HEIKO THIEME CHAIRMAN OF NEW YORKBASED AMERICAN HERITAGE FUND SPECTRUM'S LARGEST SHAREHOLDER SAYS THAT ALTHOUGH THE COMPANY'S TECHNOLOGY IS SOUND SPECTRUM NEEDS A CEO WHO KNOWS MORE ABOUT TECHNOLOGY MR MASKALY WAS PREVIOUSLY CHIEF FINANCIAL OFFICER OF SHOE AND HANDBAG COMPANY JASMINE LTD MR THIEME SPECULATED THAT MR CASERTA MAY EVENTUALLY QUIT AND THE SMALL WIRELESS COMPANY WILL ATTEMPT TO REGAIN ITS CREDIBILITY BY ATTRACTING NEW MANAGEMENT WITH SPECTRUM'S STOCK TRADING AT MUCH LOWER LEVELS LATELY THE COMPANY MAY ALSO BE A RIPE ACQUISITION TARGET HE SAID 9403310056 940331 PEPPERAND SALT IN THE TOLL BOOTH LANE BALLPLAYERS ARE MAKING SO MUCH MONEY THEY'VE BECOME YUPPIES WHEN THEY WIN A PENNANT THEY STILL POUR WINE OVER EACH OTHER BUT ONLY AFTER IT'S HAD TIME TO BREATHE 9403310055 940331 BUSINESS BRIEF OWENSCORNING FIBERGLAS CORP EARNINGS EXPECTED TO RISE BY 35 TO 40 CENTS A SHARE OWENSCORNING FIBERGLAS CORP TOLEDO OHIO EXPECTS ITS ANNUAL EARNINGS WILL IMPROVE BY BETWEEN 35 CENTS AND 40 CENTS A SHARE BEGINNING IN 1995 AS A RESULT OF FOUR NEW PRODUCTIVITY INITIATIVES THE INITIATIVES WHICH INCLUDE THE CONSOLIDATION OF THE COMPANY'S SALES OPERATIONS WILL RESULT IN A FIRSTQUARTER ONETIME CHARGE OF 83 MILLION OR 186 A SHARE OWENSCORNING WILL ALSO TAKE A ONETIME CHARGE OF 39 MILLION IN THE FIRST QUARTER AS A RESULT OF THE ADOPTION OF REQUIRED ACCOUNTING STANDARDS FOR POSTEMPLOYMENT AND POSTRETIREMENT BENEFITS BUT THE GLASSFIBER CONCERN SAID THE CHARGES WILL NOT HAVE AN IMPACT ON ITS 1994 FIRSTQUARTER EARNINGS BECAUSE OF AN OFFSETTING ONETIME GAIN OF 122 MILLION OR 274 A SHARE THE GAIN RESULTS FROM A CHANGE IN ACCOUNTING METHODS FOR THE REBUILDING OF OWENSCORNING'S FIBERGLASS MELTING FACILITIES OWENSCORNING SAID THE PRODUCTIVITY INITIATIVES WILL REDUCE COSTS AND ENHANCE EFFICIENCY THE INITIATIVES INCLUDE REENGINEERING THE COMPANY'S TECHNOLOGY DEVELOPMENT PROCESS CONSOLIDATING FIELD SALES AND ADMINISTRATIVE OPERATIONS AND REORGANIZING THE COMPANY'S GLOBAL MANUFACTURING FACILITIES 9403310054 940331 ECONOMY STATECHARTERED BANKS IN NEW YORK ARE GIVEN THE RIGHT TO SELL ANNUITIES BY G BRUCE KNECHT AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL IN AN IMPORTANT VICTORY FOR BANKS NEW YORK'S HIGHEST COURT GAVE STATECHARTERED INSTITUTIONS THE RIGHT TO SELL ANNUITIES ONE OF THE INSURANCE INDUSTRY'S FASTESTGROWING PRODUCTS THE BATTLE OVER WHETHER BANKS CAN OFFER ANNUITIES AND INSURANCE PRODUCTS IS BEING FOUGHT IN SEVERAL COURTS AROUND THE COUNTRY AND BANKINGINDUSTRY LEADERS ASSERT THAT THE 60 DECISION BY THE NEW YORK COURT OF APPEALS WILL LEAD TO EXPANDED BANK RIGHTS IN OTHER STATES THE DECISION ALSO MAY INCREASE THE LIKELIHOOD THAT THE US SUPREME COURT WILL TAKE UP THE ISSUE OF WHETHER FEDERALLYCHARTERED BANKS SHOULD HAVE THE RIGHT TO SELL ANNUITIES THIS IS A VERY SIGNIFICANT DECISION FOR NEW YORK'S BANKING INDUSTRY AND IT MAY HAVE NATIONAL RAMIFICATIONS SAID MICHAEL P SMITH EXECUTIVE VICE PRESIDENT OF THE NEW YORK BANKERS ASSOCIATION A PARTY IN THE STATE CASE ADDED DAVID RODERER A BANKINGREGULATION EXPERT WITH WINSTON & STRAWN A WASHINGTON LAW FIRM IF NEW YORK WILL ALLOW BANKS TO SELL ANNUITIES MANY OTHER STATES WILL DO THE SAME NEW YORK INSURANCE GROUPS WHICH PROTESTED THE ENCROACHMENT OF BANKS ON THEIR TURF DOWNPLAYED THE LIKELY IMPACT OF YESTERDAY'S DECISION IN OTHER STATES BUT THEY ARE WORRIED ABOUT THE NEARTERM EFFECTS IN NEW YORK THE RULING OPENS UP THE WHOLE SITUATION OF BANKS SELLING INSURANCE SAID MARK YAVORNITZKI EXECUTIVE VICE PRESIDENT OF THE NEW YORK STATE ASSOCIATION OF LIFE UNDERWRITERS WHO SAID BANKS WOULD UNFAIRLY TAKE BUSINESS AWAY FROM THE INSURANCE INDUSTRY INSURANCE AGENTS ARE LIKELY TO BE HURT MORE THAN THE INSURERS THEMSELVES BECAUSE BANKS ARE STILL BARRED FROM UNDERWRITING INSURANCE PRODUCTS IT WILL GREATLY IMPACT THE ABILITY OF THE AGENTS TO SELL ANNUITIES AND THE AGENTS' PROFITABILITY SAID JEFF MYERS A SPOKESMAN FOR THE INDEPENDENT INSURANCE AGENTS OF AMERICA ANNUITIES A 90BILLIONAYEAR BUSINESS ARE AN INCREASINGLY POPULAR INVESTMENT ALTERNATIVE BECAUSE THEY OFFER A TAXSHELTERED FORM OF RETIREMENT SAVINGS GENERALLY ANNUITIES OFFER A STEADY STREAM OF PAYMENTS IN RETURN FOR AN UPFRONT LUMPSUM AMOUNT MEANWHILE BANKS ARE SCRAMBLING TO INCREASE THE VARIETY OF FINANCIAL AND INSURANCE PRODUCTS THEY OFFER AS THEIR TRADITIONAL CUSTOMERS DEMAND MORE SOPHISTICATED PRODUCTS THAN LOWYIELDING BANK ACCOUNTS ANNUITIES OFFER BANKS A NEW REVENUE SOURCE AS WELL AS A MEANS OF DEEPENING THEIR CLIENT RELATIONSHIPS THE OFFICE OF THE COMPTROLLER OF THE CURRENCY HAS AUTHORIZED NATIONAL BANKS TO SELL ANNUITIES THROUGHOUT THE COUNTRY HOWEVER THE RIGHTS OF BANKS REMAIN MURKY BECAUSE OF LEGAL CHALLENGES AT BOTH THE STATE AND FEDERAL LEVELS ALTHOUGH THE MAJORITY OF BANKS IN THE COUNTRY ARE STATECHARTERED WHICH MEANS THEY ARE PRIMARILY REGULATED BY THE FEDERAL RESERVE THE BULK OF THE INDUSTRY'S ASSETS ARE IN FEDERAL INSTITUTIONS WHOSE PRIMARY REGULATOR IS THE COMPTROLLER OF THE CURRENCY IN NEW YORK STATE MOST OF THE BIGGEST BANKS ARE FEDERALLY CHARTERED ALTHOUGH THERE ARE SOME SUCH AS CHEMICAL BANK AND BANK OF NEW YORK THAT ARE STATE CHARTERED MR SMITH ESTIMATES THAT HALF OF THE NEW YORK'S 98 STATECHARTERED INSTITUTIONS CURRENTLY OFFER ANNUITIES TO THEIR CUSTOMERS THROUGH THIRD PARTIES WHO SHARE THEIR COMMISSIONS WITH THE BANKS HOWEVER UNTIL YESTERDAY'S COURT DECISION THE BANKS WERE UNABLE TO SELL THE PRODUCTS DIRECTLY NOW THAT THE CLOUD HAS BEEN LIFTED I EXPECT THAT MANY OF THEM WILL TAKE THE EXTRA STEP AND BEGIN SELLING THEM MR SMITH SAID THE NEW YORK BATTLE BEGAN IN 1991 WHEN THE STATE'S BANKING DEPARTMENT DECIDED TO LET BANKS SELL ANNUITIES AND THE NEW YORK STATE ASSOCIATION OF LIFE UNDERWRITERS CHALLENGED THE DECISION THE INSURANCE INDUSTRY ARGUED THAT BANKS SHOULD NOT BE ALLOWED TO SELL ANNUITIES BECAUSE IT IS ILLEGAL FOR BANKS TO SELL INSURANCE PRODUCTS HOWEVER THE COURT HELD THAT ANNUITIES ARE AN INVESTMENT PRODUCT NOT A FORM OF INSURANCE THE NEW YORK STATE RULING COMES AS A PARALLEL BATTLE IS TAKING PLACE ON THE FEDERAL LEVEL NATIONSBANK CORP BEGAN CHALLENGING FEDERAL REGULATORY RESTRICTIONS ON ANNUITY SALES IN 1989 BY ASKING THE COMPTROLLER'S OFFICE TO PERMIT IT TO SELL ANNUITIES THE COMPTROLLER AGREED BUT THE FIFTH CIRCUIT COURT OF APPEALS IN NEW ORLEANS CAME DOWN ON THE SIDE OF THE INSURANCE INDUSTRY LAST YEAR NATIONSBANK IS ON THE VERGE OF APPEALING THE DECISION TO THE NEXT AND FINAL LEVEL THE US SUPREME COURT A MOVE THAT MUST BE TAKEN BY APRIL 13 ALTHOUGH THE CHARLOTTE NCBASED BANK IS ALMOST CERTAIN TO PETITION THE SUPREME COURT IT ISN'T YET KNOWN WHETHER IT WILL BE JOINED BY THE COMPTROLLER IT'S AN IMPORTANT ISSUE WITHOUT THE COMPTROLLER'S PARTICIPATION WHICH MUST BE APPROVED BY THE SOLICITOR GENERAL EXPERTS SAY THE SUPREME COURT IS LESS LIKELY TO TAKE UP THE CASE MR RODERER WHO IS MEETING WITH THE SOLICITOR GENERAL ON MONDAY ON BEHALF OF THE BANKING INDUSTRY'S TRADE GROUPS SAID THE NEW YORK CASE DOES A LOT TO STRENGTHEN OUR CASE THAT THE SOLICITOR GENERAL SHOULD JOIN IN 9403310053 940331 BUSINESS BRIEF MACMILLAN BLOEDEL LTD PULP CONCERN TO BE FORMED CANADIAN OFFERING PLANNED MACMILLAN BLOEDEL LTD VANCOUVER BRITISH COLUMBIA SAID IT WILL FORM A NEW PULP COMPANY AND PLANS TO OFFER ALL THE UNIT'S SHARES TO THE PUBLIC IN CANADA MACMILLAN BLOEDEL ESTIMATES THE TRANSACTION COULD BE WORTH 320 MILLION CANADIAN DOLLARS US2326 MILLION INCLUDING C240 MILLION FROM THE SHARE SALE AND A DEBT COMPONENT OF C80 MILLION THE FORESTPRODUCTS CONCERN WILL TRANSFER ITS KRAFT PULP MILL IN NANAIMO BRITISH COLUMBIA AND ITS PULPMARKETING BUSINESS TO THE NEW COMPANY HARMAC PACIFIC INC HARMAC PACIFIC WILL HAVE ABOUT C200 MILLION IN SALES THIS YEAR AND WILL EMPLOY 710 PEOPLE HARMAC PACIFIC'S 15 MILLION COMMON SHARES WILL BE OFFERED TO THE PUBLIC ON AN INSTALLMENTRECEIPT BASIS BY AN UNDERWRITING GROUP LED BY RBC DOMINION SECURITIES INC THE PURCHASE PRICE WILL BE PAYABLE TO MACMILLAN BLOEDEL IN TWO INSTALLMENTS THE FIRST ON CLOSING AND THE SECOND A YEAR LATER CLOSING IS EXPECTED IN MAY 9403310052 940331 BUSINESS BRIEF ROGERS COMMUNICATIONS INC MACLEAN HUNTER LTD PAGING OPERATIONS TO BE ACQUIRED ROGERS CANTEL MOBILE COMMUNICATIONS INC HAS AGREED TO ACQUIRE THE PAGING OPERATIONS OF MACLEAN HUNTER LTD TERMS WEREN'T DISCLOSED WHILE ANALYSTS HAVE VALUED PAGING SYSTEMS AT AS MUCH AS 600 TO 800 CANADIAN DOLLARS US43510 TO US58013 PER SUBSCRIBER A SPOKESMAN FOR ROGERS CANTEL 80OWNED BY ROGERS COMMUNICATIONS INC SAID THAT VALUE WOULD BE HIGH WITH RESPECT TO RECENT TRANSACTIONS MACLEAN HUNTER'S PAGING DIVISION HAS ABOUT 62000 SUBSCRIBERS ROGERS CANTEL AND THE MACLEAN HUNTER OPERATIONS COMBINED WOULD HAVE ABOUT 177000 PAGING SUBSCRIBERS ROGERS COMMUNICATIONS A CABLE TELEVISION AND TELECOMMUNICATIONS CONCERN AND ITS UNIT ARE BASED IN TORONTO SEPARATELY ROGERS COMMUNICATIONS SAID THE US FEDERAL COMMUNICATIONS COMMISSION APPROVED THE TRANSFER OF US CABLE LICENSES CURRENTLY HELD BY MACLEAN HUNTER TO A TRUSTEE UNTIL FINAL REGULATORY CLEARANCES ARE RECEIVED 9403310051 940331 POLITICS & POLICY GAMBLING INDUSTRY SAYS TAX MEANS SNAKE EYES BUT FROM WASHINGTON IT LOOKS LIKE A NATURAL BY RICK WARTZMAN AND PAULINE YOSHIHASHI STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON GENERALLY SPEAKING DISTURBING THE CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE AT HOME LATE AT NIGHT ISN'T THE BEST WAY TO GET A LOBBYING CAMPAIGN OFF THE GROUND STEVE WYNN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MIRAGE RESORTS INC APPARENTLY CAUGHT REP DAN ROSTENKOWSKI DOZING THROUGH THE ACADEMY AWARDS TELECAST WHEN HE CALLED TO TALK ABOUT THE GAMBLING INDUSTRY'S OWN SURPRISE WAKEUP CALL THE WHITE HOUSE HAD SPREAD THE WORD THAT IT'S CONSIDERING A 4 TAX ON NET GAMBLING REVENUES TO HELP FINANCE WELFARE REFORM THAT'S THE CLINTON ADMINISTRATION'S OPERATING PHILOSOPHY READY FIRE AIM SAYS MR WYNN HE ADDS THAT AS FAR AS HE KNOWS MR ROSTENKOWSKI WASN'T ASLEEP EITHER WAY MR WYNN'S UNUSUAL LATENIGHT CALL UNDERSCORES THE URGENCY WITH WHICH THE GAMBLING INDUSTRY VIEWS THE PROSPECT OF A FEDERAL EXCISE TAX AFTER RECOVERING FROM THEIR INITIAL SHOCK CASINO OPERATORS HORSE AND DOGTRACK OWNERS AND INDIAN TRIBES WITH GAMBLING FACILITIES HAVE WASTED NO TIME IN LOBBYING THE ADMINISTRATION AND CONGRESS IN THE HOPES OF KEEPING THE TAX FROM EVER BEING FORMALLY PROPOSED BUT PRESIDENT CLINTON MAY HAVE NO CHOICE NO OTHER MAJOR LEVIES BESIDES THE GAMBLING TAX HAVE BEEN PRESENTED TO THE PRESIDENT BY HIS WELFAREREFORM WORKING GROUP LEAVING MR CLINTON IN THE POSITION OF PUSHING AHEAD WITH THE TAX OR GUTTING KEY ELEMENTS OF HIS PROGRAM TO END WELFARE AS WE KNOW IT YESTERDAY A SENIOR WHITE HOUSE OFFICIAL SAID THERE'S ABOUT AN 80 CHANCE THAT A GAMBLING TAX WILL BE PART OF THE PRESIDENT'S PLAN IN WHITE HOUSE MEETINGS MR CLINTON HASN'T VOICED ANY OPPOSITION TO THE IDEA A 4 TAX ON THE AMOUNT THAT GAMBLING OPERATIONS RETAIN AFTER PAYING OUT WINNINGS WOULD RAISE 31 BILLION OVER FIVE YEARS ACCORDING TO ADMINISTRATION OFFICIALS WITHHOLDING TAXES ON PARIMUTUEL WINNINGS ALSO WOULD BE STRENGTHENED BRINGING IN A FEW HUNDRED MILLION DOLLARS MORE SO FAR THE INDUSTRY'S MAIN ARGUMENT AGAINST THE TAX IS ECONOMIC THE INDUSTRY SAYS THAT GAMBLING MAY APPEAR TO BE A GOGO BUSINESS BUT MANY ESTABLISHMENTS ARE BARELY PROFITABLE AND A TAX WOULD FORCE THEM TO CLOSE THEIR DOORS ANY ADDITIONAL TAXES WOULD BE DEVASTATING TO THIS INDUSTRY CONTENDS BRIAN MCGRATH COMMISSIONER OF THE THOROUGHBRED RACING ASSOCIATIONS MR MCGRATH WHO TRAVELED HERE LAST WEEK WITH TWO RACECOURSE OWNERS TO SOLICIT SUPPORT FROM KENTUCKY'S CONGRESSIONAL DELEGATION NOTES THAT AT LEAST NINE TRACKS HAVE CLOSED DOWN IN THE PAST FIVE YEARS WE'RE TALKING ABOUT JOBS HE SAYS IN MANY WAYS THE GAMBLING INDUSTRY IS AN EASY TARGET TO TAX RIVERBOAT CASINOS AND VIDEO GAMES ARE POPPING UP ALL OVER THE COUNTRY AS GAMBLING HAS TURNED INTO MASSMARKET ENTERTAINMENT MEANWHILE PEOPLE'S IMPRESSIONS OF THE INDUSTRY ARE BEING SHAPED BY PLACES LIKE THE FOXWOODS CASINO ON THE MASHANTUCKET PEQUOT RESERVATION IN CONNECTICUT WITH ITS OVERFLOWING CROWDS AND THE LAVISH THEMEPARKSTYLE CASINOS THAT CONTINUE TO OPEN IN LAS VEGAS IN THE PAST DECADE GROSS GAMBLING REVENUES HAVE EXPLODED TO MORE THAN 30 BILLION FROM LESS THAN 14 BILLION ACCORDING TO SECURITIES FIRM WERTHEIM SCHRODER & CO AND CHRISTIANSEN/CUMMINGS ASSOCIATES A CONSULTING FIRM EVEN MORE IMPORTANT FOR THE CLINTON ADMINISTRATION'S PLANS THE INDUSTRY IS EXPECTED TO KEEP GROWING AT A HEALTHY CLIP OVERALL MAKING IT AN ATTRACTIVE SOURCE OF REVENUE FOR A WELFAREREFORM PROGRAM WHOSE COSTS WOULD SWELL IN LATER YEARS YET THE INDUSTRY BACKED BY ITS CHAMPIONS IN CONGRESS IS ATTEMPTING TO COUNTER ITS HIGHROLLING IMAGE WITH ECONOMIC STUDIES SHOWING THAT MANY GAMBLING OPERATIONS ARE ON SHAKY FINANCIAL GROUND IRONICALLY OF COURSE IT'S ONLY THE BIGGEST AND MOST WELLHEELED GAMBLING COMPANIES THAT CAN AFFORD TO HIRE THE LOBBYISTS AND CONSULTANTS TO PLAY UP HOW BADOFF PARTS OF THE INDUSTRY ARE ONE REPORT PREPARED BY ARTHUR ANDERSEN & CO FOR INSTANCE FINDS THAT A THIRD OF ALL NEVADA CASINO LICENSEES WITH REVENUES OF MORE THAN 1 MILLION WERE UNPROFITABLE LAST YEAR AND AN ADDITIONAL 15 OPERATED AT PROFIT MARGINS OF LESS THAN 5 GAMING IS NOT AS LUCRATIVE AS IT ONCE WAS SAYS DEMOCRATIC SEN HARRY REID OF NEVADA WHO ESCORTED HIS STATE'S GOVERNOR DEMOCRAT BOB MILLER TO SEE WHITE HOUSE CHIEFOFSTAFF THOMAS MCLARTY ON THE MATTER LAST WEEK LATER MESSRS REID AND MILLER WERE ON CAPITOL HILL WHEN THEY BUMPED INTO PRESIDENT CLINTON WHO TOLD THEM HE HADN'T MADE ANY FINAL DECISIONS IT WAS A VERY POSITIVE EXCHANGE THE SENATOR SAYS MR REID ALONG WITH FELLOW DEMOCRATIC SENS RICHARD BRYAN OF NEVADA WENDELL FORD OF KENTUCKY FRANK LAUTENBERG OF NEW JERSEY AND BARBARA MIKULSKI OF MARYLAND ALSO WROTE TO MR CLINTON TO WARN HIM THAT A TAX COULD BE THE FINAL BLOW TO MANY TEETERING TRACKS AND COST TENS OF THOUSANDS OF CASINO JOBS IN TRUTH NOT ALL SEGMENTS OF THE INDUSTRY ARE PLAYING THE SAME HAND PARIMUTUEL WAGERING AND CHARITABLE GAMBLING ARE STAGNANT OR EXPANDING ONLY MODESTLY MOST OF THE INDUSTRY'S GROWTH IN COMING YEARS IS EXPECTED TO COME FROM CASINOSTYLE GAMBLING RANGING FROM INDIAN CASINOS TO RIVERBOATS AND VIDEOLOTTERY TERMINALS WHICH WILL HIT ABOUT 209 BILLION IN GROSS GAMBLING REVENUES BY 1995 ACCORDING TO WERTHEIM SCHRODER POINTING OUT HOW FINANCIALLY PRECARIOUS MANY BETTING OPERATIONS ARE ISN'T THE INDUSTRY'S ONLY TACTIC GAMBLING EXECUTIVES ALSO MAINTAIN THAT A TAX IS INEQUITABLE BECAUSE IT WOULD HIT SOME STATES MUCH HARDER THAN OTHERS NEVADA ALONE WOULD SHOULDER A THIRD OF THE BURDEN ACCORDING TO SEN REID OTHERS PUT THE NUMBER CLOSER TO 40 THE INDIAN TRIBES WHICH ALREADY BOAST THEIR OWN WASHINGTONBASED GAMING ASSOCIATION HAVE THEIR OWN SPECIAL CASE TO MAKE THEY NOTE THAT THEIR GAMBLING REVENUES GO TOWARD PROVIDING HEALTH EDUCATION AND OTHER CRITICAL SERVICES FOR NATIVE AMERICANS THUS A TAX WOULD JUST DEPLETE THESE RESOURCES FOR THEIR OWN PEOPLE IN ORDER TO FUND WELFARE REFORM SAYS PETER TAYLOR THE FORMER GENERAL COUNSEL OF THE SENATE SELECT COMMITTEE ON INDIAN AFFAIRS WHO IS NOW A LOBBYIST FOR SEVERAL TRIBES WITH GAMBLING OPERATIONS THE TRIBES ALSO SAY THAT IT WOULD BE UNFAIR TO EXEMPT STATE LOTTERIES WHICH THE CLINTON TEAM HAS INDICATED IT WOULD DO WHILE TAXING THEM ONE THING THAT HAS YET TO BE SORTED OUT IS WHETHER THE DIFFERENT GAMBLING INTERESTS WILL STICK TOGETHER IN OPPOSING THE TAX OR WIND UP ARGUING THAT THEIR PARTICULAR SEGMENT OF THE INDUSTRY SHOULD BE EXEMPT EVEN IF OTHERS HAVE TO PAY IN THE PAST THE INDUSTRY HAS FALLEN VICTIM TO FINGERPOINTING ON VARIOUS STATE ISSUES WITH THE HORSE AND DOGTRACK OWNERS BATTLING THE BIG CASINO OPERATORS OR GANGING UP TO ATTACK THE INDIAN TRIBES BUT THIS TIME COMPANIES SUCH AS HILTON HOTELS CORP AND PROMUS COS ARE HOPEFUL OF FINALLY PUTTING TOGETHER A BROADBASED GAMBLING TRADE GROUP IN WASHINGTON THEY FIGURE THAT IF THE THREAT OF A MAJOR TAX ISN'T ENOUGH TO FORCE FRACTIOUS GAMBLING EXECUTIVES TO FORM A UNIFIED FRONT THE INDUSTRY WILL FACE TOUGH POLITICAL TIMES AHEAD EVEN IF THE CURRENT EXCISETAX PROPOSAL IS SOMEHOW SCRAPPED OR SCALED BACK THE THREAT IS BOUND TO REEMERGE SAYS LOBBYIST CHARLES BLACK WHOSE CLIENTS INCLUDE MGM GRAND INC AND THE CASINO ASSOCIATION OF NEW JERSEY THIS KIND OF AN ISSUE TENDS TO UNITE PEOPLE 9403310050 940331 TECHNOLOGY & HEALTH MAGNETIC FIELDS LINKED TO LEUKEMIA BUT MAJOR CANADIAN STUDY FAILS TO SHOW EXPOSURE IS CAUSE OF THE CANCER BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A LARGE CANADIAN STUDY SPONSORED BY THREE MAJOR UTILITIES FOUND A LINK BETWEEN AT LEAST ONE RARE TYPE OF LEUKEMIA AND OCCUPATIONAL EXPOSURE TO ELECTROMAGNETIC FIELDS BUT THE REPORT BASED ON THE EXPERIENCE OF MORE THAN 200000 WORKERS IN CANADA AND FRANCE DIDN'T SHOW THAT EXPOSURE TO SUCH FIELDS CAUSES THE CANCER KNOWN AS ACUTE NONLYMPHOID LEUKEMIA IN ANY EVENT THE STUDY INDICATED THAT THE RISK OF GETTING THE CANCER IS VERY SMALL THE STUDY IS THE MOST AMBITIOUS EFFORT YET TO ADDRESS WHETHER THE ELECTROMAGNETIC FIELDS OR EMFS EMANATING FROM SOURCES RANGING FROM HUGE POWER TRANSMISSION LINES TO HOUSEHOLD ELECTRICAL APPLIANCES CAN CAUSE CANCER RESEARCHERS UTILITY INDUSTRY OFFICIALS POLICY MAKERS AND PUTATIVE VICTIMS OF EMFS ALL HAD HOPED THE REPORT WOULD HELP RESOLVE A PUBLIC CONTROVERSY OVER THE POSSIBLE HEALTH IMPACT OF EXPOSURES TO EMFS AND WHAT SHOULD BE DONE ABOUT THEM INSTEAD IT UNDERSCORED HOW DIFFICULT IT CAN BE TO FIND OR RULE OUT RELATIONSHIPS BETWEEN SOME CANCERS AND POTENTIAL ENVIRONMENTAL HAZARDS THE FAILURE OF RESULTS TO BE DEFINITIVE IS BAD NEWS SAID DAVID SAVITZ AN EPIDEMIOLOGIST AT THE UNIVERSITY OF NORTH CAROLINA SCHOOL OF PUBLIC HEALTH WHO IS LEADING A SIMILAR STUDY AT FIVE US UTILITIES MAYBE THE TRUTH HAS BEEN UNCOVERED AND THE TRUTH IS MURKY AB MILLER CHAIRMAN OF PREVENTIVE MEDICINE AND BIOSTATISTICS AT THE UNIVERSITY OF TORONTO A COAUTHOR OF THE REPORT SAID OUR STUDY ADDS TO THE BODY OF EVIDENCE THAT SUGGESTS THERE IS AN ASSOCIATION POSSIBLY A CAUSAL ONE BETWEEN SOME FORMS OF LEUKEMIA AND ELECTROMAGNETIC FIELDS MOREOVER HE SAID THE ASSOCIATION COMES THROUGH EVEN AFTER ADJUSTING FOR EXPOSURES TO CHEMICALS AND OTHER POTENTIAL CANCERCAUSING SUBSTANCES THAT UTILITY WORKERS MIGHT ENCOUNTER AT WORK BUT HE SAID WE'RE NOT MUCH CLOSER TO BEING ABLE TO SAY PRECISELY WHAT CIRCUMSTANCES OF EXPOSURE IF ANY ARE HAZARDOUS AND HE CAUTIONED AGAINST APPLYING THE FINDINGS TO EXPOSURE OF THE GENERAL PUBLIC TO EMFS THE STUDY WILL APPEAR IN THE NEXT ISSUE OF THE AMERICAN JOURNAL OF EPIDEMIOLOGY DURING THE 20YEAR STUDY RESEARCHERS SAID 4151 NEW CASES OF CANCER OCCURRED AMONG WORKERS AT THE THREE UTILITIESELECTRICITE DE FRANCE ONTARIO HYDRO AND HYDROQUEBEC OVERALL THE 50 OF THE UTILITY WORKERS WITH THE HIGHEST EXPOSURES TO MAGNETIC FIELDS DIDN'T RUN ANY HIGHER RISK OF CANCER THAN THE 50 WITH THE LOWEST EXPOSURES HOWEVER WHEN THE RESEARCHERS BEGAN LOOKING AT SPECIFIC TYPES OF CANCER THEY FOUND AN ASSOCIATION BETWEEN MAGNETICFIELD EXPOSURE AND A GROUP OF LEUKEMIAS CALLED ACUTE NONLYMPHOID LEUKEMIA OF THE MORE THAN 4000 CASES OF CANCER OVER 20 YEARS THERE WERE 60 CASES OF ACUTE NONLYMPHOID LEUKEMIA WHEN THE RESEARCHERS LOOKED AT THE 50 OF THE WORKERS WITH THE HIGHER EXPOSURES TO EMF THE RISK OF DEVELOPING THIS KIND OF LEUKEMIA WAS 24 TIMES GREATER THAN AMONG THE HALF OF THE WORKERS WITH THE LOWER EXPOSURE TO EMF RESEARCHERS ALSO FOUND A NEARLY TWOFOLD INCREASE IN RISK OF BRAIN CANCER AMONG THE 10 OF WORKERS WITH THE HIGHEST EMF EXPOSURES BUT THE NUMBER OF CASES WAS TOO SMALL TO BE STATISTICALLY SIGNIFICANT HOWEVER THE RESEARCHERS FAILED TO FIND ANY OTHER CANCER TO BE ASSOCIATED WITH EXPOSURE TO MAGNETIC FIELDS THE SCIENTISTS SAID AND THE UTILITIES EMPHASIZED THAT THAT THE FINDINGS WEREN'T CONCLUSIVE THE STUDY FAILED TO FIND ANY EVIDENCE THAT THE RISK OF CANCER ROSE AS THE DEGREE OF EXPOSURE TO EMF INCREASED A SOCALLED DOSERESPONSE EFFECT WHICH WOULD HAVE BEEN A STRONG HINT THAT MAGNETIC FIELDS MIGHT CAUSE CANCER UTILITY INDUSTRY REPRESENTATIVES IN THE US AND CANADA SAID THE FAILURE OF THE STUDY TO SHOW A DEFINITIVE ASSOCIATION BETWEEN MAGNETIC FIELDS AND CANCER WAS WELCOME FRANKLY IT'S A SIGH OF RELIEF SAID MARK WARNQUIST PARTNER AT LEBOEUF LAMB GREENE AND MACRAE A DENVER LAW FIRM THAT REPRESENTS UTILITIES IN EMF COURT CASES THE UNIVERSITY OF NORTH CAROLINA'S DR SAVITZ SAID HE THINKS THE RESULTS STRENGTHEN A BIT THE CASE FOR AN ASSOCIATION BETWEEN SOME LEUKEMIAS AND MAGNETIC FIELDS THE MYSTERY IS GIVEN THE QUALITY OF THE STUDY WHY DIDN'T IT EMERGE VERY CLEARLY HE SAID ONE POSSIBLE EXPLANATION HE SAID IS THAT RESEARCHERS HAVEN'T IDENTIFIED PATTERNS OF EXPOSURE TO MAGNETIC FIELDS THAT MIGHT LEAD TO CANCER ONE WEAKNESS OF THE STUDY WAS THAT THE RISK ESTIMATES DIFFERED FROM UTILITY TO UTILITY AS A RESULT OF SUCH INCONSISTENCY REACTIONS VARIED AMONG THE UTILITIES BUT THE UNIVERSITY OF TORONTO'S DR MILLER SAID AT ONTARIO HYDRO WHERE ACCORDING TO THE DATA RISK OF GETTING THE CANCERS WAS HIGHEST OFFICIALS ARE EXPECTED TO TAKE SEVERAL MONTHS ANALYZING DATA TO DETERMINE WHETHER SPECIFIC JOBS WORKING CONDITIONS OR OTHER FACTORS MIGHT HAVE HEIGHTENED THE RISK THE RESEARCH TEAM WAS HEADED BY GILLES THERIAULT OF THE DEPARTMENT OF OCCUPATIONAL HEALTH AT MCGILL UNIVERSITY IN MONTREAL 9403310049 940331 BUSINESS BRIEF EL PASO NATURAL GAS CO FIRSTPERIOD CHARGE PLANNED TO COVER RULING ON AMOCO EL PASO NATURAL GAS CO SAID IT WILL TAKE A FIRSTQUARTER CHARGE OF 12 MILLION OR 33 CENTS A SHARE TO COVER THE COMPANY'S POTENTIAL EXPOSURE FROM A COURT DECISION REGARDING RATES EL PASO CHARGED AN AMOCO CORP UNIT IN THE FIRST QUARTER A YEAR AGO EL PASO HAD NET INCOME OF 308 MILLION OR 83 CENTS A SHARE ON REVENUE OF 2109 MILLION THE COMPANY SAID THE DELAWARE CHANCERY COURT SUPPORTED A CLAIM BY AMOCO PRODUCTION CO FOR LOWER GATHERING RATES FOR SOME OF ITS PRODUCTION DATING BACK TO NOV 1988 THE COURT HAS REQUESTED BRIEFS TO DETERMINE THE AMOUNT OF REFUNDS TO WHICH AMOCO MIGHT BE ENTITLED I CAN TELL YOU WE ARE VERY DISAPPOINTED AN EL PASO SPOKESWOMAN SAID AND WE PLAN TO AGGRESSIVELY PURSUE AN APPEAL THE COMPANY ALSO SAID THAT ITS MANAGEMENT DOESN'T EXPECT THE OUTCOME TO HAVE A MATERIALLY ADVERSE EFFECT ON ITS FINANCIAL CONDITION OR FUTURE RESULTS AMOCO SAID TRIAL EVIDENCE INDICATED THAT PAST DAMAGES WOULD BE APPROXIMATELY 17 MILLION AND THE DECISION COULD AFFECT CURRENT AND FUTURE RATES 9403310048 940331 REVIEW & OUTLOOK EDITORIAL ITALY'S VICTORY A GROWING SENTIMENT OF GLOBAL CYNICISM TOWARD POLITICS AND POLITICIANS HAS CAUSED SOME TO WONDER LATELY ABOUT THE STRENGTH OF DEMOCRATIC SYSTEMS VOTERS SOME MONTHS BACK IN JAPAN AND NOW IN ITALY HAVE ANSWERED THOSE WORRIES BY VOTING TO THROW THE RASCALS OUT SILVIO BERLUSCONI AND HIS FREEDOM ALLIANCE JUST WON BIG IN ITALY'S PARLIAMENTARY ELECTION MR BERLUSCONI AND HIS FOLLOWERS AND ADVISERS FROM THE NEW FORZA ITALIA PARTY EARNED THEIR WIN WITH TRULY FRESH IDEAS FOR GOVERNING ITALY SOMETHING VOTERS OBVIOUSLY FOUND APPEALING FOR ITALY THE REFORM PROPOSALS THAT MR BERLUSCONI RAN ON ARE LITTLE SHORT OF REVOLUTIONARY THAT IS NO DOUBT PARTLY BECAUSE MR BERLUSCONI HAD THE ADVICE OF SOME FIRSTRATE THINKERS SUCH AS ECONOMIST ANTONIO MARTINO IF ADOPTED THEY WILL TRULY CHANGE ITALY FOR THE BETTER LET'S LOOK AT SOME OF THEM MR BERLUSCONI PROMISED TO OVERHAUL COMPLETELY WHAT MUST BE ONE OF THE WORLD'S MOST GRASPING AND INVASIVE TAX SYSTEMS SO GREEDY THAT IT MAKES CHEATING SEEM HONORABLE MR BERLUSCONI WOULD REDUCE THE NUMBER OF TAXES ITALIANS PAY TO 20 FROM 200 AND CUT THE TOP INCOME TAX RATE TO 33 FROM 50 WITH THE EXPLICIT GOAL OF REDUCING TAX EVASION BY THE WEALTHY THE US EXPERIENCE SHOWS THAT WHEN TOP RATES ARE CUT THE WEALTHY PROVIDE A LARGER NOT SMALLER SHARE OF REVENUES THE STATE MEDICAL CARE SYSTEM CORRUPT BROKEN DOWN AND BUREAUCRACYRIDDEN WOULD UNDERGO PRIVATIZATION THE POOR WILL GET VOUCHERS TO COVER THEIR MEDICAL COSTS THE LEFT PROMISED TO CONTINUE PRIVATIZING ITALIAN INDUSTRY BUT VOTERS CORRECTLY DOUBTED THEIR SINCERITY MR BERLUSCONI IS FAR MORE LIKELY TO TACKLE THE STATE'S INDUSTRIAL OCTOPI TO DO THIS IS IMPORTANT NOT JUST TO INTRODUCE MORE COMPETITION AND EFFICIENCY BUT ALSO TO DESTROY A MAJOR SOURCE OF POLITICAL PATRONAGE THAT HELPED KEEP THE OLD SYSTEM ENTRENCHED FOR 45 YEARS IN SHORT MR BERLUSCONI HAS PROPOSED TO REDUCE THE ALLPERVASIVE POWER THE ITALIAN POLITICAL CLASS HAS ACQUIRED THROUGH THE STATE'S CONTROL OVER MUCH OF THE COUNTRY'S ECONOMIC LIFE THIS TOOLARGE STATE POWER FED CORRUPTION ANOTHER GLOBAL PHENOMENON OF OUR TIME UNTIL ITALIANS FINALLY GOT DISGUSTED AND VOTED IN THE NEW ELECTORAL LAW THAT PRODUCED THIS OUTCOME MR BERLUSCONI'S COALITION WILL HAVE A STRONG MAJORITY IN THE CHAMBER OF DEPUTIES IT WILL FALL JUST SHORT OF VOTING CONTROL IN THE SENATE RAISING CONCERNS THAT FORMING A GOVERNMENT COULD BE DIFFICULT THE VERY IMPORTANT QUESTION OF WHETHER ITALIANS REGAIN SOME FAITH IN THEIR POLITICAL SYSTEM WILL REST ON THE SHOULDERS OF MR BERLUSCONI AND HIS COALITION ALLIES ONE PARTNER THE NORTHERN LEAGUE'S UMBERTO BOSSI DIDN'T FARE MUCH BETTER THAN THE LEFT THE OTHER THE NATIONAL ALLIANCE'S GIANFRANCO FINI DID BETTER THAN EXPECTED BUT IF BOTH WANT TO PRESERVE SOME FUTURE FOR THEMSELVES IN ITALIAN POLITICS THEY HAD BETTER TAKE A CLOSE LOOK AT THE POLICIES MR BERLUSCONI IS ESPOUSING SOME OF MR BERLUSCONI'S CRITICS HAVE POINTED OUT THAT HE HIMSELF HAD IMPORTANT POLITICAL CONNECTIONS WHILE HE WAS BUILDING HIS VAST WEALTH BETTINO CRAXI THE FORMER SOCIALIST PREMIER NOW UNDER INVESTIGATION FOR FRAUD WAS ONE OF THEM BUT IF ITALIANS HOLD MR BERLUSCONI TO HIS PROMISE TO DISMANTLE MUCH OF THE GREAT APPARATUS OF STATE IT WILL BECOME HARDER FOR HIM OR ANY OF HIS SUCCESSORS TO CONSTRUCT SUCH A ROTTEN EDIFICE ITALY'S VOTERS HAVE GIVEN MR BERLUSCONI A HISTORIC OPPORTUNITY WE HOPE HE AND HIS PARTNERS SEIZE IT 9403310047 940331 TECHNOLOGY BRIEF H&R BLOCK CO COMPUSERVE ONLINE UNIT SETS RECORD FOR NEW MEMBERS COMPUSERVE INFORMATION SERVICES SAID IT ADDED A RECORD 80000 NEW MEMBERS TO ITS COMPUTER ONLINE SERVICE IN FEBRUARY THE COLUMBUS OHIO COMPANY A UNIT OF H&R BLOCK CO SAID THE NUMBER OF NEW SUBSCRIBERS IS THE LARGEST MONTHLY ADDITION IN ITS 15YEAR HISTORY INCREASED AWARENESS OF ONLINE SERVICES ADVERTISING AND THE DECLINING COST OF COMPUTERS HAVE ATTRIBUTED TO THE GROWTH A SPOKESWOMAN SAID COMPUSERVE CURRENTLY SERVES NEARLY 18 MILLION SUBSCRIBERS RIVAL PRODIGY SERVICES CO A UNIT OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO IS IN 11 MILLION HOUSEHOLDS WHILE AMERICA ONLINE INC HAS TRIPLED ITS SUBSCRIBER BASE IN THE LAST YEAR TO 700000 9403310046 940331 BUSINESS BRIEF IGI INC BIOTECHNOLOGY OPERATIONS TO BE SPUN OFF TO HOLDERS IGI INC SAID IT PLANS TO RID ITSELF OF ITS UNPROFITABLE BIOTECHNOLOGY OPERATIONS BY SPINNING THEM OFF AS A SEPARATE PUBLICLY TRADED COMPANY TO SHAREHOLDERS THE PLAN IS SUBJECT TO A FAVORABLE TAX RULING ON THE SPINOFF AND CERTAIN FINANCING ARRANGEMENTS AMONG OTHER FACTORS THE PURPOSE OF THE SPINOFF IS TO PROVIDE ENHANCED ACCESS FOR BOTH COMPANIES TO THE CAPITAL MARKETS SAID BUENA NJBASED IGI WHICH ALSO MAKES AND MARKETS ANIMALCARE COSMETIC AND PERSONALCARE PRODUCTS THE COMPANY REPORTED A NET LOSS FOR 1993 OF 42 MILLION OR 46 CENTS A SHARE COMPARED WITH THE MODEST NET INCOME A YEAR EARLIER OF 66032 OR ONE CENT A SHARE REVENUE ROSE 15 TO 28 MILLION THE 1993 NET LOSS INCLUDED A 32 MILLION OPERATING LOSS ON THE BIOTECHNOLOGY OPERATIONS AS WELL AS A 28 MILLION ALLOWANCE FOR COSTS OF THE PLANNED SPINOFF A YEAR EARLIER THE PROFIT INCLUDED BIOTECHNOLOGY OPERATING LOSSES OF 13 MILLION IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE IGI CLOSED AT 1125 DOWN 75 CENTS OR 63 9403310045 940331 MARKET BRIEF NOTED WHO'S NEWS MARK HARRINGTON WAS NAMED SENIOR VICE PRESIDENTNEW MEDIA FOR CBS INC MR HARRINGTON 47 WAS PREVIOUSLY VICE PRESIDENT IN CHARGE OF CBS'S OLYMPICS COVERAGE 9403310044 940331 NORTHROP OFFERS TO SWEETEN BID FOR GRUMMAN INCREASE DEPENDS ON REVISION OF AUCTION BUT TARGET ISN'T PLANNING CHANGES BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES NORTHROP CORP OFFERED TO SWEETEN ITS BID FOR GRUMMAN CORP TO 62 A SHARE IF GRUMMAN ABANDONS TODAY'S SEALEDBID AUCTION OF THE COMPANY AND ADOPTS NEW BIDDING RULES BUT GRUMMAN RESPONDED THAT ITS DIRECTORS INTEND TO CONTINUE WITH TODAY'S AUCTION AS PLANNED AND HOPED TO RECEIVE THE BEST AND HIGHEST OFFERS FROM BOTH NORTHROP AND RIVAL BIDDER MARTIN MARIETTA CORP GRUMMAN WHICH HAS SAID IT DESIGNED ITS AUCTION TO ASSURE A PROMPT AND ORDERLY CLOSE TO THE BIDDING STILL PLANS TO ANNOUNCE A WINNER AT 9 AM EST MONDAY AFTER SPENDING THE THREEDAY WEEKEND COMPLETING AN ACQUISITION AGREEMENT THE BETHPAGE NY DEFENSE CONTRACTOR'S RESPONSE TO NORTHROP DIDN'T MAKE ANY REFERENCE TO NORTHROP'S PROMISE OF A NEW OFFER VALUED AT 211 BILLION AND TOPPING NORTHROP'S CURRENT 60ASHARE OFFER AT 204 BILLION THE OFFER HAD BEEN AIMED AT GOADING GRUMMAN INTO CANCELING THE 5 PM EST DEADLINE FOR RECEIVING FINAL BIDS UNDER A BIDDING STRUCTURE NORTHROP CHAIRMAN KENT KRESA HAD VEHEMENTLY OPPOSED IN A LETTER TO THE GRUMMAN BOARD YESTERDAY MR KRESA SAID HIS OFFER OF A 62ASHARE BID WOULD EXPIRE THREE HOURS BEFORE GRUMMAN'S AUCTION DEADLINE UPON EXPIRATION HE SAID THE 60 NORTHROP OFFER WOULD REMAIN IN FORCE NORTHROP MADE ITS HIGHER OFFER CONTINGENT ON GRUMMAN'S ACCEPTANCE OF A SUBSTITUTE BIDDING PLAN WHICH WOULD INSTEAD ALLOW NORTHROP OR MARTIN MARIETTA 24 HOURS TO TOP THE OPEN PUBLIC BIDS SUBMITTED BY THE OTHER MR KRESA SAID NORTHROP IS UNABLE TO ACCEPT THE RULES AND PROCEDURES SET FORTH IN THE GRUMMAN AUCTION ALTHOUGH A SPOKESMAN FOR THE MAKER OF THE B2 BOMBER AND COMPONENTS FOR OTHER AEROSPACE PROJECTS DECLINED TO SAY WHETHER THAT MEANT NORTHROP WON'T SUBMIT A BID TODAY UNDER ANY CIRCUMSTANCES AFTER GRUMMAN SAID IT WOULD PROCEED WITH TODAY'S AUCTION NORTHROP RESPONDED THAT IT IS CONTINUING TO REVIEW OUR OPTIONS AND IS SORRY GRUMMAN ELECTED NOT TO HAVE AN OPEN AND PUBLIC BIDDING PROCESS MR KRESA HAD ARGUED IN HIS LETTER THAT BOTH BIDDERS SHOULD HAVE A REASONABLE OPPORTUNITY TO RESPOND TO EACH BID BY THE OTHER FOR ITS PART MARTIN MARIETTA HAS REMAINED LARGELY SILENT ABOUT ITS BIDDING PLANS SUGGESTING TO SOME ON WALL STREET THAT THE COMPANY WILL TAKE ADVANTAGE OF NORTHROP'S OPPOSITION TO THE BIDDING PROCEDURE BY MAKING AN OFFER ONLY MODERATELY HIGHER THAN THE 62 NORTHROP HAS PROPOSED OFFERING ONE PERSON FAMILIAR WITH THE BIDDING SAID IF MARTIN MARIETTA WANTS TO WIN THEY HAVE THE BALANCE SHEET TO WIN BUT HE AND OTHERS SUGGESTED THAT MARTIN MARIETTA A BETHESDA MD COMPANY THAT HAS GROWN BY ACQUISITION INTO ONE OF THE LARGEST US DEFENSE CONTRACTORS HAS TENDED TO AVOID HIGHPRICED BIDDING WARS NORTHROP MAY BE SMALLER THIS PERSON ADDED BUT IT HAS BEEN UNUSUALLY AGGRESSIVE IN PURSUING GRUMMAN MARTIN MARIETTA'S LAST OFFER WAS THE 55ASHARE OR 193 BILLION BID THAT WAS INCLUDED IN ITS MARCH 7 ACQUISITION AGREEMENT WITH GRUMMAN NORTHROP'S 60ASHARE BID CAME THREE DAYS LATER BEFORE GRUMMAN INDICATED IT WOULDN'T ACCEPT NORTHROP'S TERMS FOR THE 62ASHARE OFFER AN ADVISER TO TRUSTEES OF THE GRUMMAN EMPLOYEE INVESTMENT PLAN SAID HE FAVORED DROPPING THE AUCTION PROCESS TO ACCEPT THE NORTHROP BID THE PLAN CONTROLLED BY THREE TRUSTEES WHO ARE GRUMMAN EXECUTIVES REPRESENTS ABOUT A 33 INTEREST IN GRUMMAN IT'S A HIGHRISK STRATEGY TO GAMBLE THE COUPLE DOLLARS THAT NORTHROP HAS JUST PUT ON THE TABLE SAID WILBUR ROSS THE TRUSTEES' ADVISER MR ROSS SAID HE WOULD LIKE GRUMMAN TO THROW OPEN THE BIDDING PROCESS ALONG THE LINES SUGGESTED BY NORTHROP WE FEEL A PREFERENCE FOR A FREE AND OPENBID PROCESS THAN A CLOSED ONE HE SAID AFTER HEARING THAT GRUMMAN HAD REJECTED NORTHROP'S PLAN MR ROSS ADDED I HOPE THEY REALIZE THE NEW FLOOR IS 62 AND ADDED THAT THE ACTION COULD SUGGEST THAT GRUMMAN MANAGEMENT KNOWS THERE IS SOME SHOWSTOPPER BID COMING FROM MARTIN MARIETTA DURING A DAY OF CONFUSING LETTER EXCHANGES BETWEEN NORTHROP AND GRUMMAN GRUMMAN SHARES ROSE 50 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TO CLOSE AT 63875 NORTHROP SHARES WERE UNCHANGED AT 40875 WHILE MARTIN MARIETTA SHARES FELL 125 CENTS TO CLOSE AT 45 NORTHROP ANGERED BECAUSE THE DEAL WITH MARTIN MARIETTA WAS STRUCK AFTER GRUMMAN SUDDENLY ENDED A YEAR OF TALKS WITH NORTHROP HAD SHARPLY CHALLENGED THE AUCTION PROCEDURE AS PERPETUATING AN UNLEVEL PLAYING FIELD THAT FAVORS BIDS FROM MARTIN MARIETTA MR KRESA IN WHAT SOME SAW AS GROUNDWORK FOR POSSIBLE LEGAL ACTION ALSO ARGUED THAT SETTING A DEADLINE FOR FINAL OFFERS DEPRIVED GRUMMAN SHAREHOLDERS OF THE BENEFITS OF CONTINUED BIDDING IN YESTERDAY'S LETTER MR KRESA FURTHER OBJECTED TO GRUMMAN AUCTION PROCEDURES THAT WOULD ALLOW GRUMMAN AND ITS ADVISERS A PERIOD OF MORE THAN THREE DAYS TO DEAL WITH ANY BIDS FROM NORTHROP OR MARTIN MARIETTA IN COMPLETE SECRECY AND WITH A COMMITMENT FROM NORTHROP NOT TO INCREASE ITS BID AFTER THAT DATE BEFORE MR KRESA MADE HIS PROPOSALS TO THE GRUMMAN BOARD YESTERDAY GRUMMAN'S CHAIRMAN RENSO L CAPORALI HAD SOUGHT IN HIS OWN LETTER TO MR KRESA TO KEEP NORTHROP INVOLVED IN THE AUCTION PROCESS BY ARGUING THAT IT OFFERS THE BEST ASSURANCE OF A FAIR AND ORDERLY PROCEDURE MR CAPORALI SAID HE FEARED THAT WITHOUT A DEADLINE THE BIDDING MIGHTN'T CONCLUDE IN THE VERY NEAR FUTURE DEFENSEINDUSTRY WATCHERS HAVE SUGGESTED THAT GRUMMAN IN AN INDUSTRY SENSITIVE TO CONGRESSIONAL OVERSIGHT WANTS TO AVOID A REPEAT OF THE EXPENSIVE DRAWNOUT FIGHT IN WHICH VIACOM INC DEFEATED QVC INC TO BUY PARAMOUNT COMMUNICATIONS INC TRADERS WERE MIXED ON WHAT THE CONDITIONAL 62ASHARE OFFER FROM NORTHROP MEANT FOR THE BIDDING PROCESS THE INCREASE OF 2 A SHARE SUGGESTED TO SOME THAT NORTHROP IS NEARING ITS LIMIT THE POSITIVE ASPECT IS THAT YOUR FLOOR IS 62 SAID ONE TRADER THE DOWNSIDE IS THIS MIGHT BE IT BUT MR KRESA'S LETTER SUGGESTED TO OTHERS THAT HIS COMPANY IS PREPARED TO TOP A HIGHER BID FROM MARTIN MARIETTA EVEN CHALLENGING THE AUCTION PROCESS BY MAKING AN OFFER AFTER THE DEADLINE WE DON'T SEE THE HARM IN A BID PROCESS WHERE ONE BIDDER KNOWS WHAT THE OTHER IS SAYING THIS TRADER SAID GREG STEINMETZ IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9403310043 940331 BUSINESS BRIEF PYRAMID TECHNOLOGY CORP FISCAL 2NDPERIOD LOSS SEEN ON 15 DECLINE IN REVENUE PYRAMID TECHNOLOGY CORP SAN JOSE CALIF SAID AN EXPECTED 15 DROP IN REVENUE DURING THE FISCAL SECOND QUARTER WOULD RESULT IN A SIGNIFICANT LOSS FOR THE PERIOD THE COMPUTERTECHNOLOGY COMPANY ATTRIBUTED THE EXPECTED RESULTS TO A DECLINE IN BUSINESS FROM THE YEAREARLIER QUARTER WHEN IT EARNED 14 MILLION OR 12 CENTS A SHARE ON REVENUE OF 58 MILLION FOR THE CURRENT QUARTER ENDING TOMORROW ANALYSTS HAD EXPECTED THE COMPANY TO REPORT EARNINGS OF FOUR CENTS TO 12 CENTS A SHARE PYRAMID'S ANNOUNCEMENT CAME AFTER THE CLOSE OF MAJOR FINANCIAL MARKETS ITS SHARES CLOSED AT 1175 DOWN 75 CENTS OR 6 IN NASDAQ STOCK MARKET TRADING 9403310042 940331 TECHNOLOGY & HEALTH NOVELL NARROWS CHOICE FOR NEW CEO TO THREE CANDIDATES FROM OTHER FIRMS BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL NOVELL INC THE WORLD LEADER IN NETWORKING SOFTWARE HAS NARROWED THE CHOICE OF ITS CHIEF EXECUTIVE OFFICER TO THREE PEOPLE INCLUDING THE HIGHESTRANKING WOMAN EXECUTIVE AT INTERNATIONAL BUSINESS MACHINES CO PEOPLE FAMILIAR WITH THE SEARCH SAY THAT ELLEN HANCOCK AN IBM GROUP EXECUTIVE WHO OVERSEES IBM'S COMPUTER NETWORKING BUSINESS IS BEING CONSIDERED AS THE SUCCESSOR FOR RAYMOND NOORDA NOVELL'S CHIEF EXECUTIVE MR NOORDA WHO IS NEARING 70 YEARS OLD SAID HE WILL STEP DOWN AS CHIEF EXECUTIVE THIS SUMMER THOUGH HE PLANS TO REMAIN AS CHAIRMAN THE SELECTION OF MR NOORDA'S SUCCESSOR COMES AT A CRITICAL TIME SINCE THE PROVO UTAH SOFTWARE MAKER LAST WEEK MADE ONE OF THE BIGGEST ACQUISITIONS IN SOFTWARE HISTORY AGREEING TO PAY MORE THAN 1 BILLION IN STOCK FOR WORDPERFECT CORP MR NOORDA LAST WEEK SAID HE WAS ACTIVELY LOOKING FOR A SUCCESSOR AMONG OUTSIDERS YESTERDAY NOVELL DECLINED TO PROVIDE THE NAMES OF CANDIDATES BUT PEOPLE FAMILIAR WITH THE SEARCH SAY THAT BESIDES MS HANCOCK NOVELL IS SERIOUSLY DISCUSSING THE TOP POST WITH RONALD J WHITTIER OF INTEL CORP OR ROBERT FRANKENBERG OF HEWLETTPACKARD CO AT INTEL WHICH SUPPLIES THE MICROCHIP THAT POWERS MOST PERSONAL COMPUTERS MR WHITTIER OVERSEES RELATIONSHIPS WITH MAJOR PC SOFTWARE SUPPLIERS INCLUDING NOVELL AND MICROSOFT MR FRANKENBERG HAS BEEN RESPONSIBLE FOR VARIOUS FORAYS INTO THE PC MARKET BY HEWLETTPACKARD AND IS HIGHLY REGARDED BY THE INDUSTRY NONE OF THE CANDIDATES RETURNED TELEPHONE CALLS OF THE THREE MS HANCOCK ELICITS THE MOST ENTHUSIASM SINCE SHE IS CONSIDERED AMONG IBM'S MOST CAPABLE EXECUTIVES AND IS HIGHLY KNOWLEDGEABLE ABOUT THE NETWORKSOFTWARE NEEDS OF LARGE ORGANIZATIONS AS IT ADDS POWER TO ITS PRODUCTS NOVELL IS EXPECTED TO APPEAL INCREASINGLY TO CUSTOMERS WHO MANAGE LARGE COMPUTER NETWORKS BY HIRING MS HANCOCK NOVELL ALSO WOULD SATISFY ITS NEED FOR A HIGHPROFILE SPOKESPERSON FOR THE COMPANY ABLE TO ENGAGE IN PUBLIC DEBATES WITH SUCH KEY RIVALS AS MICROSOFT CORP'S WILLIAM GATES ANY REPLACEMENT FOR MR NOORDA HOWEVER WOULD HAVE TO LIVE WITH A FLURRY OF RECENT ACQUISITIONS OF WHICH THE PROPOSED WORDPERFECT DEAL IS THE LARGEST MR NOORDA'S PROMISE TO STAY INVOLVED IN NOVELL'S BUSINESS ALSO COULD PRESENT PROBLEMS FOR A NEW CHIEF EXECUTIVE RAY NOORDA IS NOT HANDSOFF IN ANYTHING SO THE OPPORTUNITY FOR SECONDGUESSING THE NEW CEO IS VERY SIGNIFICANT SAID TERRENCE QUINN AN ANALYST AT FURMAN SELZ 9403310041 940331 BUSINESS BRIEF MONTGOMERY WARD & CO LECHMERE ACQUISITION CLOSES IN 100 MILLION TRANSACTION MONTGOMERY WARD & CO CHICAGO COMPLETED ITS ANNOUNCED PURCHASE OF CLOSELY HELD APPLIANCE AND CONSUMERELECTRONICS RETAILER LECHMERE CORP IN A TRANSACTION VALUED AT 100 MILLION MONTGOMERY WARD ALSO SAID IT ASSUMED 106 MILLION OF LECHMERE DEBT AND MIGHT PAY AS MUCH AS 20 MILLION AND 400000 COMMON SHARES DEPENDING ON THE NEW UNIT'S PERFORMANCE AN INDEPENDENT ACCOUNTING FIRM VALUED MONTGOMERY WARD'S SHARES AT 2250 EACH AT THE END OF 1992 USING THAT PRICE THE STOCK IT MAY ISSUE FOR LECHMERE WOULD BE VALUED AT 9 MILLION LECHMERE BASED IN WOBURN MASS HAD 1993 SALES OF MORE THAN 800 MILLION IT OPERATES 24 STORES IN MASSACHUSETTS NEW HAMPSHIRE RHODE ISLAND CONNECTICUT AND NEW YORK MONTGOMERY WARD HAD 1993 SALES OF MORE THAN 6 BILLION WHILE MONTGOMERY WARD HADN'T PREVIOUSLY DISCLOSED TERMS A SOURCE CLOSE TO THE COMPANY EARLIER ESTIMATED IT MIGHT PAY ABOUT 750 MILLION INCLUDING ASSUMPTION OF DEBT TO EFFECT THE ACQUISITION 9403310040 940331 BUSINESS BRIEF CLAYTON WILLIAMS ENERGY INC FOURTHQUARTER LOSS IS PUT AT 26 MILLION PRICING CITED CLAYTON WILLIAMS ENERGY INC'S 1993 FOURTHQUARTER RESULTS SWUNG TO A LOSS FROM A PROFIT BECAUSE OF THE OILPRICE SLIDE CHAIRMAN CLAYTON WILLIAMS JR SAID EARNINGS FOR THE MIDLAND TEXAS OIL AND GAS PRODUCING COMPANY WON'T BE OFFICIALLY RELEASED UNTIL NEXT WEEK BUT MR WILLIAMS IN AN INTERVIEW SAID THE CONCERN IS SHOWING A FOURTHQUARTER LOSS OF 26 MILLION OR 46 CENTS A SHARE AGAINST A YEAREARLIER QUARTERLY PROFIT OF 1 MILLION OR 33 CENTS A SHARE REVENUE FOR THE FOURTH QUARTER IS PEGGED AT 141 MILLION COMPARED WITH 186 MILLION DURING THE 1992 QUARTER EARNINGS REFLECT THE ADDITION OF 25 MILLION SHARES IN CLAYTON'S INITIAL PUBLIC OFFERING MR WILLIAMS SAID THE SHARP DROP IN OIL PRICES DURING THE LAST HALF OF THE YEAR CAUSED THE LOSS THE DRILLING OF TWO UNSUCCESSFUL WELLS DURING THE FOURTH QUARTER CONTRIBUTED TO THE NEGATIVE NUMBERS AS WELL 9403310039 940331 BLOCKBUSTER SEEKS TO BOOST COMMON SHARES MOVE IS THOUGHT TO RAISE QUESTION ON PROPOSAL TO MERGE WITH VIACOM BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL BLOCKBUSTER ENTERTAINMENT CORP APPEARS TO BE DEVELOPING A BACKUP PLAN JUST IN CASE ITS MERGER WITH VIACOM INC FALLS THROUGH BLOCKBUSTER WILL ASK SHAREHOLDERS TO APPROVE A PROPOSAL THAT COULD ALLOW THE COMPANY TO ALMOST TRIPLE THE AMOUNT OF STOCK IT CAN ISSUE THE MOVE ACCORDING TO SOME INDUSTRY OBSERVERS CALLS INTO QUESTION THE FUTURE OF THE MUSIC AND VIDEO RETAILER'S PLANNED MERGER WITH VIACOM A COMPANY BEING ACQUIRED FOR STOCK OBSERVERS SAID WOULDN'T HAVE ANY NEED FOR ADDITIONAL SHARES UNLESS IT BELIEVED THE MERGER MIGHT BE SIGNIFICANTLY DELAYED OR NOT COMPLETED AN INDIVIDUAL CLOSE TO VIACOM SAID THE PROVISIONS IN THE BLOCKBUSTER PROXY MATERIAL DEALING WITH AUTHORIZATION OF NEW SHARES OF STOCK ARE ROUTINE AND THAT VIACOM WAS AWARE OF THE PLAN ANY SPECULATION THAT THE STOCK PLAN THREATENS THE VIACOM MERGER AGREEMENT WITH BLOCKBUSTER THIS PERSON SAID IS A MISREADING OF THE PROXY MATERIAL A SPOKESWOMAN FOR VIACOM SAID THE COMPANY PLANS TO PROCEED WITH THE BLOCKBUSTER MERGER AS PLANNED BLOCKBUSTER BASED IN FORT LAUDERDALE FLA IS SEEKING TO RAISE THE NUMBER OF ITS AUTHORIZED SHARES TO 800 MILLION FROM 300 MILLION CURRENTLY ACCORDING TO A PRELIMINARY PROXY STATEMENT FILED THIS WEEK WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY SAID IT COULD USE ANY ADDITIONAL STOCK TO MAKE ACQUISITIONS AMONG OTHER PURPOSES THE ADDITIONAL SHARES ALSO COULD BE USED TO FEND OFF TAKEOVERS OTHER THAN BY VIACOM THE COMPANY SAID IN THE PROXY STATEMENT SHAREHOLDERS WILL VOTE ON THE PROPOSAL AT BLOCKBUSTER'S ANNUAL MEETING IN FORT LAUDERDALE MAY 24 I DON'T KNOW WHY YOU WOULD PUT THAT IN THE PROXY STATEMENT IF YOU EXPECTED THE VIACOM DEAL TO GO THROUGH SAID CRAIG BIBB A PAINEWEBBER INC ANALYST WHO FOLLOWS BLOCKBUSTER THAT SEEMS TO INDICATE THEY HAVE A BACKUP PLAN FOR LIFE WITHOUT VIACOM THOMAS W HAWKINS SENIOR VICE PRESIDENT AND GENERAL COUNSEL FOR BLOCKBUSTER SAID WE'RE APPROACHING THE COMPANY'S BUSINESS FROM TWO AVENUES ONE HE SAID IS ASSUMING THAT THE MERGER WITH VIACOM IS APPROVED THE SECOND HE ADDED INVOLVES TAKING CARE OF THE COMPANY'S BUSINESS IN THE EVENT THE MERGER DOESN'T GO THROUGH SOME BLOCKBUSTER SHAREHOLDERS CHARACTERIZED THE PROPOSAL FOR ADDITIONAL SHARES AS A HOUSEKEEPING MOVE WHICH WOULD ALLOW THE COMPANY TO CONDUCT BUSINESS AS USUAL THEY'D BE DERELICT IF THEY DIDN'T ESPECIALLY WHEN BLOCKBUSTER USES THEIR STOCK AS CURRENCY TO DO DEALS SAID LARRY HAVERTY A MONEY MANAGER WITH STATE STREET RESEARCH IN BOSTON WHICH IS A LARGE BLOCKBUSTER SHAREHOLDER THE STOCK PROPOSAL FOLLOWS RECENT COMMENTS BY BLOCKBUSTER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER H WAYNE HUIZENGA THAT HE AND OTHER SHAREHOLDERS AREN'T HAPPY WITH THE CURRENT TERMS OF THE TRANSACTION WHICH VALUES BLOCKBUSTER STOCK AT 2275 A SHARE BLOCKBUSTER WAS TRADING IN THE 31ASHARE RANGE BEFORE THE MERGER PROPOSAL WAS ANNOUNCED IN JANUARY YESTERDAY IT CLOSED AT 25875 DOWN 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR HUIZENGA SAID AT AN INVESTMENT CONFERENCE IN NEW YORK LAST WEEK THAT THE COMBINATION IN ITS CURRENT FORM WOULD BE UNLIKELY TO WIN BOARD APPROVAL ACCORDING TO PEOPLE WHO ATTENDED THE MEETING WITHOUT THAT NOD FROM DIRECTORS AT LEAST TWOTHIRDS OF BLOCKBUSTER'S SHAREHOLDERS MUST VOTE FOR THE PROPOSAL MR HUIZENGA SAID AT THAT CONFERENCE HE ADDED THAT SHAREHOLDERS OVERWHELMINGLY WANT BLOCKBUSTER TO RENEGOTIATE OR ABANDON THE DEAL WITH VIACOM ONE PERSON FAMILIAR WITH VIACOM'S PLANS SAID HE CAN'T IMAGINE WHY THE COMPANY'S CHAIRMAN SUMNER REDSTONE WOULD RENEGOTIATE THE DEAL BASED ON SHORTTERM PRICE FLUCTUATIONS THE PERSON SAID HE BELIEVES BOTH BLOCKBUSTER'S AND VIACOM'S STOCK WILL REBOUND ONCE PROXY MATERIALS RELATING TO THE PLAN ARE MAILED AND THE SEC ALLOWS THE COMPANIES TO SELL INVESTORS ON THE MERITS OF THE DEAL 9403310038 940331 BUSINESS BRIEF OREGON STEEL MILLS INC STEELMAKER WILL BUY EQUITY IN VENEZUELAN IRON VENTURE OREGON STEEL MILLS INC AGREED TO BUY A 13 EQUITY INTEREST IN A VENEZUELAN IRON VENTURE TERMS WEREN'T DISCLOSED THE COMPANY COMPLEJO SIDERURGICO DE GUAYANA CA WAS FORMED TO DESIGN CONSTRUCT AND OPERATE A PLANT FOR PROCESSING IRON OXIDES INTO HOT BRIQUETTED IRON AN ENHANCED FORM OF DIRECTED REDUCED IRON THE PLANT TO BE CONSTRUCTED THIS YEAR WITH OPERATION SCHEDULED FOR LATE 1996 WILL HAVE CAPACITY OF ONE MILLION METRIC TONS PER YEAR IN ADDITION TO ITS EQUITY INVESTMENT THE PORTLANDBASED STEELMAKER WILL ANNUALLY RECEIVE 200000 METRIC TONS OF THE IRON FROM THE VENTURE OTHER MAJOR INVESTORS ARE KOBE STEEL LTD OF JAPAN AND FERROMINERA DEL ORINOCO A SUBSIDIARY OF THE VENEZUELA GOVERNMENTOWNED HOLDING COMPANY RESPONSIBLE FOR DEVELOPING INDUSTRY IN VENEZUELA INVESTORS IN THE PROJECT WILL PUT UP A TOTAL OF 250 MILLION 9403310037 940331 BUSINESS BRIEF SYNOVUS FINANCIAL CORP TOTAL SYSTEMS SERVICES WINS BANKAMERICA AGREEMENT TOTAL SYSTEM SERVICES INC SAID IT SIGNED A CREDITCARD PROCESSING AGREEMENT WITH BANKAMERICA CORP THAT WILL INCREASE THE NUMBER OF ACCOUNTS SERVICED BY TOTAL SYSTEMS BY ALMOST 20 UNDER THE AGREEMENT TOTAL SYSTEMS A UNIT OF SYNOVUS FINANCIAL CORP WILL PROVIDE PROCESSING SERVICES FOR VISA AND MASTERCARD CREDITCARD ACCOUNTS OF BANKAMERICA BASED IN SAN FRANCISCO BOTH TOTAL SYSTEMS AND SYNOVUS ARE BASED IN COLUMBUS GA WHILE TERMS OF THE AGREEMENT WEREN'T DISCLOSED A TOTAL SYSTEMS SPOKESMAN NOTED THAT THE COMPANY SERVICED 355 MILLION ACCOUNTS AT THE CLOSE OF 1993 THE NEW AGREEMENT HE SAID WILL ADD MORE THAN SEVEN MILLION ACCOUNTS BEGINNING IN THE FOURTH QUARTER OF THIS YEAR THE BULK OF THE ACCOUNTS HE ADDED WOULD BE PICKED UP IN THE FIRST QUARTER OF 1995 TOTAL SYSTEMS PROVIDES DATAPROCESSING SERVICES TO 114 CREDITCARD ISSUERS IN 36 STATES 9403310036 940331 BUSINESS BRIEF DUTY FREE INTERNATIONAL INC TAXFREE MERCHANDISER BUYS AIRLINE CONCESSIONS CONCERN DUTY FREE INTERNATIONAL INC AGREED TO ACQUIRE INFLIGHT SALES GROUP LTD FOR ABOUT 70 MILLION IN CASH AND NOTES SEPARATELY DUTY FREE AN OPERATOR OF DUTYFREE STORES AND SUPPLIER OF DUTYFREE MERCHANDISE BASED IN RIDGEFIELD CONN SAID IT EXPECTS EARNINGS OF BETWEEN EIGHT CENTS AND 11 CENTS A SHARE THE COMPANY SAID ITS NORTHERN BORDER DIVISION CONTINUED TO PERFORM POORLY IN CANADA IN THE FISCAL 1994 FIRST QUARTER ENDED APRIL 30 1993 DUTY FREE REPORTED NET INCOME OF 51 MILLION OR 19 CENTS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DUTY FREE FELL 125 TO 1475 INFLIGHT A NEW YORKBASED MARKETER OF INFLIGHT AMENITY KITS AND DUTYFREE MERCHANDISE OPERATES CONCESSIONS FOR MORE THAN 20 INTERNATIONAL AIRLINES IN 1993 INFLIGHT HAD ABOUT 105 MILLION IN SALES DUTY FREE HAD ABOUT 3764 MILLION IN SALES FOR ITS FISCAL YEAR ENDED JAN 31 9403310035 940331 BUSINESS BRIEF AMERICAN PRESIDENT COS OPERATING RESULTS EXPECTED TO BREAK EVEN STOCK SINKS AMERICAN PRESIDENT COS'S STOCK PLUNGED 20 AFTER THE FIRM DISCLOSED THAT IT EXPECTS BREAKEVEN OPERATING RESULTS IN THE FISCAL FIRST QUARTER THE OAKLAND CALIF TRANSPORTATION CONCERN WOULD NOT PROVIDE AN INDICATION OF WHAT ITS NET INCOME WOULD BE FOR THE PERIOD THAT ENDS APRIL 8 EXCEPT TO SAY IT WOULD INCLUDE 10 MILLION OF EARNINGS FROM REAL ESTATE SALES AND WORK RELATED TO OPERATION DESERT STORM THE COMPANY SAID A SLUMP IN ITS TRANSPORTATION BUSINESS FROM SUCH FACTORS AS PRICE COMPETITION AND LOWERMARGIN CARGO WOULD DEPRESS THE OPERATING INCOME ANALYSTS HAD EXPECTED NET INCOME OF 42 CENTS TO 52 CENTS A SHARE IN THE QUARTER ACCORDING TO ZACKS INVESTMENT RESEARCH INC IN THE SAME PERIOD A YEAR AGO THE COMPANY REPORTED PROFIT OF 121 MILLION OR 76 CENTS A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THE STOCK SANK 6125 TO 24 9403310034 940331 INTERNATIONAL BRIEF STORA AB SWEDISH FOREST CORPORATION TO SELL STAKE IN CHILEAN FIRM STORA AB SWEDEN'S LEADING FOREST SECTOR COMPANY SAID IT SIGNED AGREEMENTS TO SELL ITS FOREST INTERESTS IN CHILE FOR 100 MILLION STORA OF STOCKHOLM WILL SELL ITS 50 STAKE IN CHILEAN FOREST COMPANY FORESTAL VALDIVIA SA TO CHILE'S ARAUCO WHICH HOLDS THE REMAINING 50 THE TRANSACTION WILL BE CARRIED OUT DURING THE LATTER HALF OF THE YEAR AND WILL RESULT IN A 16 MILLION GAIN FOR STORA STORA ACQUIRED THE HOLDING IN FORESTAL VALDIVIA IN 1989 FOR ABOUT 60 MILLION WITH THE INTENTION TO CREATE A RAWMATERIALS BASE FOR A FUTURE PULP PLANT IN CHILE STORA SAID THE SITUATION CHANGED AS A RESULT OF THE ACQUISITION OF GERMANY'S FELDMUHLE A YEAR LATER 9403310033 940331 INTERNATIONAL BRIEF RANK ORGANISATION PLC COMPANY TO TAKE PROVISION TO CLOSE A US OPERATION RANK ORGANISATION PLC SAID IT EXPECTS TO TAKE AN EXCEPTIONAL PROVISION OF 75 MILLION ON ITS FIRSTHALF RESULTS FOR THE CLOSURE OF A US VIDEO AND AUDIO RACK BUSINESS THE BRITISH LEISURE GROUP SAID THAT THE PRETAX PROVISION RELATES TO ITS RANK RETAIL SERVICE AMERICA UNIT BASED IN PITTSBURGH AND WILL INCLUDE 10 MILLION OF GOODWILL THAT HAS ALREADY BEEN WRITTEN OFF RANK SAID THAT THE RACK BUSINESS HAS BEEN UNPROFITABLE FOR THE PAST FOUR YEARS LOSING 22 MILLION IN THE YEAR ENDED OCT 31 1993 RANK'S DECISION TO CLOSE DOWN ITS VIDEO DISTRIBUTION UNIT WASN'T UNEXPECTED THE COMPANY RECENTLY SAID THAT IT WOULD TRY TO FIX THE UNIT BY REQUIRING STORES TO BUY MOVIES AT COST PAYING RANK A TRANSACTION FEE THUS ELIMINATING THE FINANCIAL BURDEN AND UNCERTAINTY OF RETURNS 9403310032 940331 FORD TO REALIGN WITH A SYSTEM OF GLOBAL CHIEFS MOVE FROM INDEPENDENCE OF REGIONAL DIVISIONS SHOWS TROTMAN'S AIMS BY PAUL INGRASSIA AND JACQUELINE MITCHELL STAFF REPORTERS OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO IS PREPARING A REORGANIZATION THAT WILL PUT MAJOR FUNCTIONS SUCH AS PRODUCT DEVELOPMENT SALES AND ENGINE/TRANSMISSIONS EACH UNDER AN EXECUTIVE WITH AUTHORITY TO THINK AND ACT GLOBALLY ALEXANDER J TROTMAN FORD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER DECLINED TO DISCUSS THE PENDING REORGANIZATION BUT FORD OFFICIALS WHO ASKED NOT TO BE NAMED SAID THE COMPANY WILL ANNOUNCE ITS MOVE NEXT MONTH MR TROTMAN HAS SCHEDULED A MEETING WITH FORD'S TOP 400 EXECUTIVES IN TORONTO NEXT MONTH AND IS EXPECTED TO DISCLOSE HIS PLANS THERE THE NEW ORGANIZATION WILL BE A RADICAL DEPARTURE FROM THE EXISTING DECADESOLD STRUCTURE IN WHICH FORD NORTH AMERICA FORD OF EUROPE AND MORE RECENTLY FORD ASIA/PACIFIC OPERATE AS QUASIINDEPENDENT CAR COMPANIES SOON THE AUTONOMY OF THOSE GEOGRAPHIC GROUPS WILL BE GREATLY DIMINISHED IN FAVOR OF GLOBAL CZARS WITH WORLDWIDE AUTHORITY FOR THEIR SPECIFIC FUNCTION THE NEW STRUCTURE REFLECTS THE THINKING OF MR TROTMAN WHO TOOK THE HELM AT FORD IN NOVEMBER IT'S UNDERSTOOD THAT HE WANTS A STRUCTURE THAT WILL LET FORD AVOID COSTLY DUPLICATION OF EFFORTS IN DIFFERENT PARTS OF THE WORLD SPECIFICALLY THAT MEANS EFFICIENTLY DEVELOPING VEHICLES WHICH WITH MINOR MODIFICATIONS CAN SELL IN SEVERAL PARTS OF THE WORLD FORD HAS SUCH A VEHICLE IN A COMPACT CAR DUBBED THE MONDEO IN EUROPE AND THE FORD CONTOUR/MERCURY MYSTIQUE IN THE US BUT IT COST 6 BILLION TO DEVELOP MORE THAN FOUR TIMES THE COST OF CHRYSLER CORP'S DODGE/PLYMOUTH NEON BECAUSE OF EXPENSIVE AND TIMECONSUMING COORDINATION OF EFFORT BETWEEN FORD'S ENGINEERING ORGANIZATIONS IN DEARBORN ENGLAND AND GERMANY FORD OF EUROPE TOOK THE LEAD ROLE IN DEVELOPING THE CAR BUT FORD NORTH AMERICA ALSO HAD A MAJOR AND SOMETIMES COMPETING VOICE THE STYLING OF THE CONTOUR/MYSTIQUE WAS CHANGED LATE IN THE DEVELOPMENT CYCLE BECAUSE THE EUROPEAN STYLING WAS DEEMED TOO CONSERVATIVE FOR US TASTES WHILE IT'S NOT CLEAR WHO MR TROTMAN PLANS TO APPOINT TO KEY POSITIONS IN HIS NEW ORGANIZATION FORD'S NEW CHAIRMAN HAS BEEN CLEAR IN RECENT MONTHS ABOUT THE DIRECTION HE WANTS TO MOVE WE WANT TO BE A GLOBAL COMPANY IN PRIMARILY PRODUCT DEVELOPMENT MANUFACTURING AND PURCHASING TO OPTIMIZE THE STRENGTH FORD HAS IN VARIOUS PARTS OF THE WORLD MR TROTMAN SAID IN AN INTERVIEW I DON'T THINK THAT IT WAS SO IN THE PAST THE ULTIMATE GOAL OF ANY CHANGES IN FORD'S CURRENT MANAGEMENT WILL BE TO CUT COSTS BY ELIMINATING DUPLICATION OF EFFORT AND BUREAUCRACY MR TROTMAN SAID WE ARE USING RESOURCES AROUND THE WORLD MORE THAN WE HAVE IN THE PAST MR TROTMAN SAID WE'RE AVOIDING DUPLICATION INDUSTRY ANALYSTS HAVE SPECULATED THAT MR TROTMAN WOULD MOVE TO REORGANIZE FORD'S PRODUCTDEVELOPMENT AND ENGINEERING OPERATIONS FORD HAS THE MOST EFFICIENT FACTORIES AMONG DETROIT'S BIG THREE AND RIVALS JAPANESE ASSEMBLYPRODUCTIVITY LEVELS BUT COMPANY EXECUTIVES ACKNOWLEDGE THAT FORD STILL TAKES TOO LONG AND SPENDS TOO MUCH TO DEVELOP NEW VEHICLES AND ENGINES MOREOVER FORD LIKE RIVAL GENERAL MOTORS CORP DRAINS AWAY CASH AND ENGINEERING TALENT BY DESIGNING SLIGHTLY DIFFERENT CARS AND ENGINES FOR NORTH AMERICA EUROPE AND OTHER MARKETS IT LOOKS LIKE FORD IS AT LAST DEALING WITH ITS FUNCTIONAL SCLEROSIS SAID JAMES WOMACK COAUTHOR OF THE INFLUENTIAL 1990 BOOK ON THE AUTO INDUSTRY THE MACHINE THAT CHANGED THE WORLD MR WOMACK SAID FORD HAS LONG BEEN PLAGUED BY A PRODUCTDEVELOPMENT ORGANIZATION THAT SPENT TOO MUCH MONEY DEVELOPING CARS MR TROTMAN HIMSELF MADE THE SAME COMPLAINT AS HEAD OF FORD'S NORTH AMERICAN OPERATIONS IN THE EARLY 1990S IN AN EFFORT TO SPARK CHANGE MR TROTMAN DEPUTIZED A TEAM OF ENGINEERS TO STUDY HOW FORD COULD DEVELOP A NEW MUSTANG COUPE IN THREE YEARS INSTEAD OF THE NORMAL FOUR TO FIVE YEARS THAT STUDY LED TO THE FORMATION OF A SINGLE CROSSFUNCTIONAL TEAM HOUSED IN ONE OFFICE THE GROUP PRODUCED THE MUSTANG LAUNCHED LAST FALL IN LESS THAN THREE YEARS ON A BUDGET ROUGHLY 30 LESS THAN COMPARABLE PROGRAMS IN THE PAST NOW MR TROTMAN IS OVERSEEING THE CONSTRUCTION OF A NEW PROGRAM TEAM FACILITY AND DECLARING THAT ALL FORD'S FUTURE PRODUCTS WILL BE DEVELOPED BY TEAMS SIMILAR TO THE ONE THAT PRODUCED THE MUSTANG THE RISK MR TROTMAN RUNS IS THAT FORD'S EXISTING PRODUCT DEVELOPMENT FIEFDOMS WILL RESIST ANY LOSS OF POWER MR TROTMAN TRIED TO PLAY DOWN THE POTENTIAL UPHEAVAL IT'S NOT A NIGHTORDAY CHANGE HE SAID THE ORGANIZATION ISN'T REALLY THAT IMPORTANT HE ADDED IT'S REALLY THE PROCESS SEPARATELY FORD AVERTED A POSSIBLE STRIKE AT ITS AVON LAKE OHIO ASSEMBLY PLANT BY REACHING A TENTATIVE LABOR CONTRACT WITH THE UNITED AUTO WORKERS UNION THREE HOURS BEFORE A MIDNIGHT STRIKE DEADLINE THE PACT STILL MUST BE RATIFIED BY RANKANDFILE UNION MEMBERS 9403310031 940331 TECHNOLOGY & HEALTH US JURY REJECTS LINKAGE OF UPJOHN DRUG VIOLENCE KALAMAZOO MICH A FEDERAL COURT JURY HAS REJECTED A TEXAS MAN'S CLAIM THAT UPJOHN'S HALCION SLEEPING PILL CAUSED HIM TO TRY TO TAKE HIS OWN LIFE AND THAT OF HIS WIFE THIS IS THE SECOND TIME A JURY HAS DECIDED IN FAVOR OF UPJOHN CO BASED IN KALAMAZOO MICH IN THIS CASE MILTON WILLIAMS CLAIMED THAT IN 1988 HALCION CAUSED HIM TO BECOME SUICIDAL HOMICIDAL AND PSYCHOTIC REQUIRING HOSPITALIZATION IN A PSYCHIATRIC INSTITUTION MR WILLIAMS SAID HIS BEHAVIOR CULMINATED IN AN ATTEMPT TO MURDER HIS WIFE AND COMMIT SUICIDE HE CONTENDED THAT UPJOHN WITHHELD INFORMATION ABOUT HALCION'S SIDE EFFECTS FROM PHYSICIANS AND THE US FOOD AND DRUG ADMINISTRATION MR WILLIAMS SOUGHT DAMAGES OF MORE THAN 10 MILLION BUT THE PLAINTIFF COULDN'T PROVE THAT UPJOHN COMMITTED FRAUD OR FAILED TO DISCLOSE IMPORTANT FACTS ABOUT HALCION UPJOHN SAID THE VERDICT IS A VINDICATION OF HALCION IT SUPPORTS THE COMPANY'S LONGHELD POSITION THAT HALCION IS SAFE AND EFFECTIVE WHEN USED AS RECOMMENDED SAID LEY S SMITH UPJOHN'S PRESIDENT AND OPERATING CHIEF 9403310030 940331 INTERNATIONAL BRIEF TOYOTA MOTOR CO AUTOPARTS AFFILIATE PLANS TO MERGE THREE US UNITS NIPPONDENSO CO A JAPANESE MAKER OF ELECTRONIC AUTO PARTS SAID IT WILL MERGE THREE OF ITS WHOLLY OWNED SUBSIDIARIES IN THE US TO CREATE A COMPANY CAPITALIZED AT 226 MILLION NIPPONDENSO 24OWNED BY TOYOTA MOTOR CO SAID THE NEW COMPANY NIPPONDENSO AMERICA INC WILL HAVE ANNUAL SALES OF ROUGHLY 13 BILLION BASED ON THE 1993 SALES OF THE THREE MERGING COMPANIES BY SETTING UP THE NEW COMPANY NIPPONDENSO AIMS TO STRENGTHEN OPERATIONS IN THE US WHERE DIVERSIFICATION OF NEW MODELS AND INCREASED PROCUREMENT OF LOCAL PARTS BY JAPANESE AUTO MAKERS ARE REQUIRING HIGHERQUALITY SERVICES FROM AUTOPARTS SUPPLIERS THE COMPANY SAID THE THREE MERGING COMPANIES ARE NIPPONDENSO AMERICA INC WHICH CURRENTLY OVERSEES THE OPERATIONS OF VARIOUS USBASED SUBSIDIARIES NIPPONDENSO SALES INC AND NIPPONDENSO TECHNICAL CENTER USA INC A RESEARCH AND DEVELOPMENT CONCERN FOR AUTO PARTS THE NEW COMPANY WITH ITS 290 WORKERS WILL BE BASED IN SOUTHFIELD MICH 9403310029 940331 LAW JUSTICE AGENCY CONSIDERS CHARGES LINKED TO ABA WASHINGTON THE JUSTICE DEPARTMENT IS CONSIDERING ALLEGATIONS THAT THE AMERICAN BAR ASSOCIATION'S STANDARDS FOR ACCREDITING LAW SCHOOLS MAY VIOLATE ANTITRUST LAWS BY UNNECESSARILY INCREASING COSTS THE MASSACHUSETTS SCHOOL OF LAW HAS COMPLAINED TO FEDERAL OFFICIALS THAT THE BAR ASSOCIATION'S ACCREDITING POLICIES FUNCTION AS A CARTEL DESIGNED TO KEEP FACULTY COSTS AND THEREFORE STUDENT COSTS HIGH LAWRENCE VELVEL DEAN OF THE LAW SCHOOL SAID THE SCHOOL NOTIFIED JUSTICE DEPARTMENT OFFICIALS SHORTLY AFTER THE SCHOOL FILED SUIT AGAINST THE ACCREDITING POLICIES IN NOVEMBER SINCE THEN BRUCE PIERSON A LAWYER IN THE DEPARTMENT'S ANTITRUST DIVISION HAS CONTACTED VARIOUS LAWSCHOOL OFFICIALS TO INQUIRE ABOUT THE ACCREDITING PRACTICES THE BAR ASSOCIATION'S DESIGNATED SPOKESMAN ON THE ACCREDITATION ISSUE COULDN'T BE REACHED FOR COMMENT THE ANTITRUST INQUIRY WAS REPORTED BY THE NATIONAL LAW JOURNAL 9403310028 940331 BUSINESS BRIEF ALLIEDSIGNAL INC COMPANY BASF END TALKS ON TEXTILE CARPET FIBERS ALLIEDSIGNAL INC AND BASF CORP SAID THEY ENDED TALKS ON A JOINT VENTURE OF THEIR TEXTILE AND CARPET FIBER BUSINESSES ALTHOUGH EACH OF THEIR FIBER BUSINESSES WERE WELL POSITIONED THE COMPANIES SAID THEY COULD NOT REACH A FINAL AGREEMENT ON A MUTUALLY SATISFACTORY WAY TO INTEGRATE THEM IN A JOINT VENTURE WHEN THE TALKS WERE ANNOUNCED LAST OCTOBER THE COMPANIES SAID A COMBINATION WOULD HAVE MORE THAN 1 BILLION IN REVENUE ALLIEDSIGNAL OF MORRIS TOWNSHIP NJ ALSO SAID THE JOINT VENTURE WOULD HAVE INCREASED ITS 1995 EARNINGS BY FIVE CENTS TO 10 CENTS A SHARE PARSIPPANY NJBASED BASF IS THE NORTH AMERICAN MEMBER OF THE BASF GROUP OF GERMANY 9403310027 940331 BUSINESS BRIEFS COMERICA INC A BANK HOLDING COMPANY COMPLETED THE ACQUISITION OF PACIFIC WESTERN BANCSHARES SAN JOSE CALIF FOR ABOUT 124 MILLION IN STOCK PROCTER & GAMBLE CO ACQUIRED ARGENTINIAN DETERGENT AND BAR SOAP MAKER ALEJANDRO LLAURO E HIJOS SAIC TERMS WEREN'T DISCLOSED GALEY & LORD INC AGREED TO BUY A DECORATIVEPRINTS BUSINESS FROM BURLINGTON INDUSTRIES INC GREENSBORO NC FOR ABOUT 647 MILLION ECOGEN INC SIGNED AN AGREEMENT FOR GUJARAT STATE FERTILIZERS CO OF INDIA TO BE THE EXCLUSIVE MARKETER OF ECOGEN'S BIOLOGICAL PEST CONTROL PRODUCTS IN INDIA AND SURROUNDING AREAS 9403310026 940331 REVIEW & OUTLOOK EDITORIAL ASIDES UNCLE SAM BABYSITTER WITH ITS SOCIALIST GOVERNMENT THE CANADIAN PROVINCE OF ONTARIO MANAGES CONSISTENTLY TO LEAPFROG EVEN THE LEFTMOST REACHES OF AMERICA ONTARIO IS EMBARKING ON UNIVERSAL ACCESS TO DAY CARE LIKE THE HEALTHCARE SYSTEM AS ONE ACTIVIST PUT IT SPACES WOULD BE ASSIGNED BUREAUCRATICALLY NO WORD YET FROM WASHINGTON ON COPYING THIS PARTICULAR CANADIAN MODEL 9403310025 940331 WOOLWORTH INVESTIGATES IRREGULARITIES' WILL RESTATE FISCALYEAR INTERIM RESULTS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WOOLWORTH CORP LAUNCHED AN INTERNAL INVESTIGATION OF ALLEGATIONS OF ACCOUNTING IRREGULARITIES INCLUDING THE PROCEDURES THAT THE RETAILER SAID WILL CAUSE IT TO RESTATE ITS INTERIM FINANCIAL RESULTS FOR AT LEAST ONE OF ITS PAST TWO FISCAL YEARS ALTHOUGH THE COMPANY SAID IT EXPECTS THAT NOTHING IN THE ALLEGATIONS WILL MATERIALLY ADVERSELY AFFECT WOOLWORTH'S FINANCIAL POSITION ANALYSTS SAID THE DISCLOSURE RAISES CONCERNS ABOUT THE RETAILER'S OPERATIONS THE VARIETYSTORE AND SPECIALTYSTORE OPERATOR WHICH HAS CLOSED AND SOLD STORES IN AN EFFORT TO BOOST ITS SAGGING OPERATING RESULTS DECLINED TO ELABORATE ON ITS TERSE STATEMENT BUT THE ANNOUNCEMENT WHICH SURPRISED ANALYSTS APPEARED TO SUGGEST THAT THE PROBLEMS COULD GO BEYOND TYPICAL YEAREND REVIEWS OF MERCHANDISEMARKDOWN POLICIES THAT RETAILERS OFTEN UNDERGO INDEED WOOLWORTH SAID A SPECIAL COMMITTEE OF THE BOARD HEADED BY AN OUTSIDE DIRECTOR HAS HIRED THE LAW FIRM PAUL WEISS RIFKIND WHARTON & GARRISON THE LAW FIRM IN TURN HAS RETAINED ACCOUNTANTS KPMG PEAT MARWICK TO ASSIST IN THE INVESTIGATION PRICE WATERHOUSE IS WOOLWORTH'S OUTSIDE ACCOUNTANT THE ANNOUNCEMENT PROMPTED TWO MAJOR RATINGS AGENCIES TO LAUNCH OR INTENSIFY REVIEWS OF WOOLWORTH DEBT MOODY'S INVESTORS SERVICE INC SAID IT WILL REVIEW THE DEBT FOR A POSSIBLE DOWNGRADE EXPLORING DETAILS OF POSSIBLE WEAKNESSES IN WOOLWORTH'S INTERNAL CONTROLS AMONG OTHER ISSUES AND STANDARD & POOR'S CORP WHICH PUT WOOLWORTH DEBT ON ITS CREDITWATCH LIST WITH NEGATIVE IMPLICATIONS THIS MONTH SAID THE INVESTIGATIONS INVOLVE THE INTEGRITY OF FINANCIAL MANAGEMENT AND MAY REVEAL DEEPER PROBLEMS THAN INITIALLY ANTICIPATED KAREN SACK A RETAIL ANALYST WITH S&P SAID THIS RAISES LOTS OF ISSUES ABOUT THE MANAGEMENT OF THE COMPANY AND THE KINDS OF CONTROLS THEY HAVE OR DON'T HAVE MOODY'S RATES ABOUT 15 BILLION OF WOOLWORTH DEBT SECURITIES INCLUDING BAA1 LONGTERM DEBT S&P REVIEWING 500 MILLION OF DEBT RATES SENIOR DEBT SINGLEAMINUS THE ANNOUNCEMENT DELAYED OPENING OF TRADING IN WOOLWORTH SHARES ON THE NEW YORK STOCK EXCHANGE THE SHARES FELL 56 TO CLOSE AT 17 A SHARE A 52WEEK LOW DOWN 1 IN COMPOSITE TRADING AFTER TRADING AS LOW AS 1625 A SHARE VOLUME WAS ABOUT FOUR TIMES THE AVERAGE 560000 SHARES IN A BRIEF STATEMENT WOOLWORTH WHICH HAD REVENUE OF 963 BILLION FOR THE FISCAL YEAR ENDED IN JANUARY SAID IT WILL RESTATE ITS INTERIM FINANCIAL RESULTS FOR LATEST YEAR AND MAY HAVE TO RESTATE SIMILAR RESULTS FOR THE YEAR ENDED JAN 30 1993 THE COMPANY WHICH OPERATES WOOLWORTH STORES AS WELL AS SUCH SPECIALTY STORES AS FOOT LOCKER SAID THE RESTATEMENTS AREN'T EXPECTED TO HAVE AN IMPACT ON THE FULLYEAR RESULTS OF BOTH FISCAL YEARS AND WILL REFLECT THE CORRECTION OF GROSS MARGINS WOOLWORTH SAID IT COULDN'T YET ESTIMATE THE SIZE OF ANY RESTATEMENTS SOME ANALYSTS SPECULATED THAT THE RETAILER WAS MAKING ADJUSTMENTS FOR MISCALCULATING THE EFFECT OF MARKDOWNS IN THE PAST FISCAL YEAR THE COMPANY MAY END UP RESTATING RESULTS FOR FISCAL YEARS THAT HAVE BEEN MARKED BY MAJOR CLOSINGS AND SELLOFFS OF STORES SOME OF WHICH WERE NO LONGER PROFITABLE AND BY A VARIETY OF SPECIAL CHARGES THIS MONTH WOOLWORTH REPORTED AN AUDITED LOSS OF 495 MILLION OR 376 A SHARE FOR THE YEAR ENDED JAN 29 RESULTS FOR THE PERIOD INCLUDED A LOSS OF 104 MILLION OR 79 CENTS A SHARE ON THE SALE OF THE COMPANY'S WOOLCO STORES IN CANADA TO WALMART STORES INC AND OTHER WOOLCO STORES THAT WILL BE CLOSED SOLD OR REOPENED UNDER A DIFFERENT FORMAT FOR FISCAL 1993 WOOLWORTH REPORTED NET INCOME OF 280 MILLION OR 214 A SHARE WOOLWORTH'S RESULTS FROM THE MOST RECENT FOURTH QUARTER REFLECT THE DISAPPOINTING RESULTS FROM THE COMPANY'S CONTINUING OPERATIONS WOOLWORTH REPORTED AN OPERATING LOSS OF 21 MILLION COMPARED WITH AN OPERATING PROFIT OF 286 MILLION A YEAR EARLIER THE COMPANY SAID THE RESULTS WERE NEGATIVELY IMPACTED BY DISAPPOINTING SALES AND HEAVY PROMOTIONAL ACTIVITY MS SACK OF S&P SAID THE TREMENDOUS GROWTH OF THE COMPANY'S FOOT LOCKER STORES IN RECENT YEARS HAS SLOWED SIGNIFICANTLY THE SPORTSFOOTWEAR BUSINESS IS GROWING FOR THEM BUT SLOWLY AND IT HAS BECOME VERY COMPETITIVE WITH MORE COMPANIES JUMPING IN ANALYSTS NOTED THAT A NUMBER OF DETAILS REMAIN UNCLEAR INCLUDING THE NATURE OF THE ALLEGATIONS AND THEIR SEVERITY AS WELL AS TO WHOM THEY MIGHT POINT SOME ANALYSTS NOTED THAT THE FISCAL YEARS IN QUESTION INCLUDE A TIME IN WHICH THE COMPANY'S CHAIRMAN WILLIAM K LAVIN SERVED AS CHIEF FINANCIAL OFFICER ANN MARIE MAY AN ANALYST WITH FITCH INVESTORS SERVICE INC SAID THE HIRING OF OUTSIDE LAW AND ACCOUNTING FIRMS RAISES SERIOUS QUESTIONS THAT SUGGESTS ITS MORE THAN JUST A TYPICAL ACCOUNT ADJUSTMENT IT LEADS ME TO BELIEVE SOMETHING ELSE COULD BE GOING ON 9403310024 940331 TECHNOLOGY & HEALTH IBM MOTOROLA SET STRONGER VERSION OF POWERPC CHIP BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC APPARENTLY RESPONDING TO COMPETITIVE MOVES BY RIVAL INTEL CORP ANNOUNCED PLANS TO ROLL OUT AN EVEN MORE SOUPEDUP VERSION OF THEIR NEW POWERPC COMPUTER CHIP IBM OF ARMONK NY AND MOTOROLA OF SCHAUMBURG ILL WHICH DEVELOPED POWERPC WITH CUPERTINO CALIFBASED APPLE COMPUTER INC SAID THEY WILL BE PRODUCING A 100MEGAHERTZ VERSION OF THE RECENTLY LAUNCHED POWERPC 601 CHIP FOR VOLUME SHIPMENT IN THE FOURTH QUARTER IBM AND MOTOROLA SAID THE NEW CHIP WHICH RUNS ABOUT 25 FASTER THAN THE FASTEST 80MEGAHERTZ POWERPC 601 WILL BE SHIPPED IN LIMITED QUANTITIES IN THE SECOND QUARTER MOSTLY FOR TESTING PURPOSES ANALYSTS SAID YESTERDAY'S ANNOUNCEMENT CAME EARLIER THAN THEY HAD EXPECTED AND SEEMED TO BE MOTIVATED BY INTEL'S ACCELERATED LAUNCH OF 90MEGAHERTZ AND 100MEGAHERTZ VERSIONS OF ITS FASTEST PENTIUM CHIP IN EARLY MARCH THOSE CHIPS CALLED THE P54C ARE ALREADY BEING SHIPPED TO PERSONALCOMPUTER MAKERS SUCH AS AST RESEARCH INC AND HEWLETTPACKARD CO THE P54C SLIGHTLY EXCEEDS OVERALL PERFORMANCE OF THE POWERPC CHIPS CURRENTLY INCLUDED ON A NEW LINE OF APPLE MACINTOSHES LAUNCHED MARCH 14 IBM IS TO COME OUT WITH ITS POWERPCBASED PERSONAL COMPUTERS LATER IN THE YEAR THE 100MEGAHERTZ POWERPC CHIP IS EXPECTED BY ANALYSTS TO REGAIN A SLIGHT PERFORMANCE EDGE BOTH INTEL AND THE POWERPC TROIKA PLAN SUCCESSIVE GENERATIONS OF THEIR COMPETING CHIPS THAT WILL LEAPFROG ONE ANOTHER IN PERFORMANCE WITH POWERPC EXPECTED BY ANALYSTS TO TAKE A LEAD EVENTUALLY IT'S IMPORTANT FOR THEM POWERPC TO STAY ON TOP OF THE HILL HERE SAID MICHAEL SLATER PUBLISHER OF THE MICROPROCESSOR REPORT IN SEBASTOPOL CALIF OFFICIALS AT SANTA CLARA CALIFBASED INTEL SAID THEY WEREN'T OVERLY CONCERNED WITH THE LATEST POWERPC CHIP NOTING THAT IT WON'T SHIP IN VOLUME UNTIL LATE IN THE YEAR INTEL WHOSE CHIPS DOMINATE SOME 85 OF THE PC MARKET MAINTAINS AN OVERWHELMING ADVANTAGE IN THE NUMBER OF SOFTWARE PROGRAMS DESIGNED TO RUN ONLY ON INTELBASED MACHINES THROUGH MICROSOFT CORP'S DOS AND WINDOWS OPERATING SYSTEMS 9403310023 940331 INTERNATIONAL MEXICO PRESIDENT REMOVES CHIEF OF STAFF FROM POST MEXICO CITY PRESIDENT CARLOS SALINAS DE GORTARI'S CHIEF OF STAFF JOSE CORDOBA MONTOYA WAS REMOVED FROM HIS POST A MOVE THAT MAY INDICATE THE PRESIDENT IS TRYING TO QUELL FIGHTING WITHIN THE RULING PARTY ANALYSTS SAID THE FINANCE MINISTRY ANNOUNCED THAT MR CORDOBA A POWERFUL POLITICAL FIGURE HAS BEEN APPOINTED MEXICO'S ENVOY TO THE INTERAMERICAN DEVELOPMENT BANK IN WASHINGTON DC THE MOVE COMES AS THE CRISISRIDDEN RULING PARTY KNOWN BY ITS INITIALS PRI CHOSE ERNESTO ZEDILLO A 42YEAROLD ECONOMIST TO REPLACE LUIS DONALDO COLOSIO THE PRESIDENTIAL CANDIDATE ASSASSINATED LAST WEEK IN TIJUANA MEXICO MR ZEDILLO WAS VIEWED BY SOME AS TOO CLOSELY ASSOCIATED WITH MR CORDOBA THE VIEW HAD BEEN ADVANCED THAT MR ZEDILLO WOULDN'T BE HIS OWN MAN BUT RATHER A PUPPET OF THE CURRENT PRESIDENT ONE ANALYST SAID THE REMOVAL OF MR CORDOBA WAS A DEAL CUT WITH HARDLINERS TO ALLOW MR ZEDILLO TO BE THE PRI'S CANDIDATE MR CORDOBA WAS ALSO DISLIKED BY MORE REFORMMINDED PRI MEMBERS AS WELL AS OPPOSITIONPARTY LEADERS WITH A GUERRILLA UPRISING IN THE SOUTH AND THE ASSASSINATION MR SALINAS IS MOVING TO CONTROL DAMAGE TO HIS PRESIDENCY ONE ANALYST SAID 9403310022 940331 INTERNATIONAL BRIEF RICOH CO CHINESE VENTURE TO BEGIN LOCAL PROCUREMENT OF PARTS SHANGHAI RICOH FACSIMILE CO STARTED ASSEMBLY OF FACSIMILE MACHINES IN FEBRUARY WITH ALL MACHINERY PARTS SHIPPED FROM JAPAN THE PLAN FOR PARTS PROCUREMENT IN CHINA IS AIMED AT CUTTING COSTS THE COMPANY HOPES TO SECURE EXPORT OF LOWPRICED FACSIMILE MACHINES WORLDWIDE A RICOH SPOKESMAN SAID RICOH HOLDS A 495 STAKE IN THE JOINT VENTURE WHILE GOVERNMENTRUN SHANGHAI FACSIMILE MACHINE CO CHINA'S TOP FACSIMILE EQUIPMENT MAKER OWNS 45 CHAMPION TECHNOLOGY LTD OF HONG KONG HOLDS THE REMAINING EQUITY 9403310021 940331 BUSINESS BRIEF TEXACO INC SUIT ALLEGES DISCRIMINATION AGAINST BLACK PROFESSIONALS TWO TEXACO INC EMPLOYEES FILED A LAWSUIT ON BEHALF OF ABOUT 1500 EMPLOYEES ALLEGING THE COMPANY DISCRIMINATES AGAINST ITS AFRICANAMERICAN WORKERS THE COMPLAINT FILED LAST WEEK IN THE US DISTRICT COURT IN WHITE PLAINS NY WHERE TEXACO IS BASED SEEKS CLASSACTION STATUS AND ALLEGES THE COMPANY EMPLOYS FEWER BLACK WORKERS IN CERTAIN SALARY RANGES THAN THE OIL INDUSTRY DOES THE COMPLAINT ALSO SAYS TEXACO HASN'T ALLOWED THOSE WORKERS THE EXPERIENCE AND OPPORTUNITY NEEDED FOR PROMOTION AND HAS RETALIATED AGAINST THOSE WHO HAVE OBJECTED TO THE ALLEGED PRACTICES TEXACO SPOKESMAN DAVID DICKSON SAID THE COMPLAINT IS RIDDLED WITH FALSEHOODS AND THE COMPANY BELIEVES IT WOULD PREVAIL IN COURT MR DICKSON SAID ABOUT 2100 OF TEXACO'S US EMPLOYEES ARE BLACK AN INCREASE OF 15 IN THE PAST FIVE YEARS DURING WHICH THE NUMBER OF US EMPLOYEES DROPPED TO 20000 FROM ABOUT 25000 DANIEL L BERGER AN ATTORNEY REPRESENTING THE EMPLOYEES SAID WE BELIEVE THE ALLEGATIONS ARE WELLFOUNDED 9403310020 940331 BUSINESS BRIEF CAPITAL HOLDING CORP FIRSTQUARTER CHARGE SLATED FOR IMPAIRED' INVESTMENT CAPITAL HOLDING CORP LOUISVILLE KY SAID IT EXPECTS TO TAKE A FIRSTQUARTER CHARGE OF 20 CENTS TO 36 CENTS A SHARE FOR ITS IMPAIRED INVESTMENT IN GRANITE PARTNERS A LIMITED PARTNERSHIP THAT INVESTED IN MORTGAGEBACKED SECURITIES THE COMPANY WHICH PROVIDES CONSUMER FINANCIAL SERVICES INCLUDING INSURANCE CONSUMER LOANS AND ANNUITY AND PENSION PRODUCTS SAID IT WAS DIFFICULT TO ASSESS THE PORTFOLIO'S VALUE WITH ANY MORE PRECISION DUE TO THE ILLIQUID NATURE OF THE UNDERLYING SECURITIES CAPITAL WHICH HAS 229 BILLION IN ASSETS HAD INVESTMENTS IN GRANITE VALUED AT 524 MILLION AT YEAR END AND SAID IT ONLY WAS MADE AWARE OF THE FUND'S DETERIORATING POSITION WITHIN THE PAST SEVERAL DAYS FOR THE 1993 FIRST QUARTER CAPITAL REPORTED NET INCOME OF 658 MILLION OR 64 CENTS A SHARE THE COMPANY DESCRIBED ITS INVESTMENT IN GRANITE AS ONE OF 10 SMALL PROGRAMS IT RUNS THROUGH OUTSIDE FUND MANAGERS TO DIVERSIFY ITS INVESTMENTRISK PROFILE 9403310019 940331 BUSINESS BRIEF UNION BANK OF SWITZERLAND SWISS BANK AGREES TO ACQUIRE RESOURCE INVESTMENTS INC UNION BANK OF SWITZERLAND REACHED AN AGREEMENT IN PRINCIPLE TO BUY THE ASSETS AND BUSINESS OF RESOURCE INVESTMENTS INC TERMS WEREN'T DISCLOSED CLOSELY HELD RESOURCE INVESTMENTS MANAGES ABOUT 700 MILLION DIRECT TIMBER AND MILL INVESTMENTS ON BEHALF OF LARGE INSTITUTIONAL CLIENTS THE FIRM DECLINED TO SPECIFY ITS REVENUE FIGURES BUT INDUSTRY ESTIMATES RANGE BETWEEN 4 MILLION AND 7 MILLION A YEAR UNION BANK SAID RESOURCE INVESTMENTS OF WEST LEBANON NH WILL BECOME ONE OF THE INVESTMENT SPECIALTY SHOPS OF ITS UBS ASSET MANAGEMENT INC UNIT UBS ASSET MANAGEMENT HAS MORE THAN 30 BILLION IN ASSETS UNDER MANAGEMENT UNION BANK OF SWITZERLAND HAS TOTAL ASSETS OF 208 BILLION 9403310018 940331 BUSINESS BRIEF DIME SAVINGS BANK OF NEW YORK CONNECTICUT PROGRAM IS SET TO SETTLE PROBE OF LENDING DIME SAVINGS BANK OF NEW YORK SAID IT WILL OFFER A 6 MILLION MORTGAGE PROGRAM IN CONNECTICUT TO SETTLE A PROBE OF ITS LENDING PRACTICES IN THE STATE THE AGREEMENT WITH THE STATE'S ATTORNEY GENERAL AND THE STATE'S BANKING DEPARTMENT FOLLOWS AN INQUIRY OF THE LENDING PRACTICES OF DIME REAL ESTATE SERVICES CONNECTICUT INC A REALESTATE SERVICES SUBSIDIARY THE NEW YORK BANK'S PROGRAM IS INTENDED TO HELP SOME DIME CUSTOMERS WHO HAD FALLEN VICTIM TO THE SHARP AND UNEXPECTED DECLINE IN THE NEW ENGLAND REALESTATE MARKET IN THE 1980S THE BANK WHICH HAS MAINTAINED THAT ITS LENDING PRACTICES WERE NOT IMPROPER SAID THE AGREEMENT COULD NOT BE CONSTRUED AS IMPLYING ANY FINDING OF WRONGDOING THE PROGRAM IS SIMILAR TO ONE AGREED TO BETWEEN THE BANK AND THE MASSACHUSETTS ATTORNEY GENERAL LAST WEEK DIME SAID LIKE THE MASSACHUSETTS PROGRAM THE CONNECTICUT PROGRAM WOULD INCLUDE PROVISIONS ALLOWING BORROWERS FACING FORECLOSURE TO RESTRUCTURE THEIR LOANS AND THOSE WHO HAVE ALREADY LOST THEIR HOMES THROUGH FORECLOSURE TO APPLY FOR FORGIVENESS OF AMOUNTS STILL OWED 9403310017 940331 LAW LEGAL BEAT IN SOME STATES LAWYERS CHALLENGE THE AUTHORITY OF BAR ASSOCIATIONS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL LAWYERS IN SEVERAL STATES ARE MOUNTING CHALLENGES TO THEIR BAR ASSOCIATIONS COMPLAINING THAT THE GROUPS IMPINGE ON LAWYERS' FREEDOM BY PUSHING PRO BONO WORK OR ESPOUSING POLITICAL CAUSES THE EFFORT HAS GAINED THE MOST MOMENTUM IN FLORIDA WHERE 500 LAWYERS HAVE FORMED AN INSURGENT GROUP THAT IS SEEKING TO TAKE AWAY MOST OF THE BAR ASSOCIATION'S POWER THEY'RE VIOLATING OUR RIGHTS AS CITIZENS SAID HENRY TRAWICK COFOUNDER OF THE GROUP THAT IS LOBBYING AGAINST THE 50600MEMBER FLORIDA BAR THE NATION'S FOURTHLARGEST BAR ASSOCIATION CURRENTLY THE FLORIDA BAR REGULATES AND DISCIPLINES LAWYERS UNDER THE SUPERVISION OF THE STATE SUPREME COURT THE RENEGADES WHO CALL THEMSELVES THE ATTORNEYS' BAR ASSOCIATION ARE SEEKING A STATE CONSTITUTIONAL AMENDMENT THAT WOULD PUT LAWYER REGULATION IN THE HANDS OF A STATE REGULATORY AGENCY SUPERVISED BY THE LEGISLATURE MEANWHILE LAWYERS IN OTHER STATES HAVE TAKEN THEIR PROFESSIONAL ASSOCIATIONS TO TASK FOR PUBLISHING MAGAZINES AND DOING OTHER WORK BESIDES SIMPLY REGULATING ATTORNEYS THIS MONTH VIRGINIA INSURGENTS HELPED PERSUADE STATE LAWMAKERS TO PLACE A FREEZE ON INCREASES IN BAR DUES IN WASHINGTON STATE A GROUP OF BAR MEMBERS ARE TRYING SO FAR UNSUCCESSFULLY TO REDUCE THE BAR'S ACTIVITIES IN NEW MEXICO THE BAR IS TIED UP IN LITIGATION OVER HOW IT SPENDS DUES AND REPORTS THAT SPENDING BUT ONLY IN FLORIDA DO LAWYERS WANT A DIFFERENT AGENCY TO REGULATE AND DISCIPLINE THEM THE AGENCY THEY HAVE CHOSEN ALREADY REGULATES DOCTORS ACCOUNTANTS AND VARIOUS OTHER PROFESSIONALS THE DEBATE IS TINGED WITH CONCERNS OVER WHAT SOME LAWYERS SEE AS POLITICALLY CORRECT BAR ASSOCIATION PROGRAMS MANY LAWYERS FOR INSTANCE ARE CHAFING UNDER A STATE SUPREME COURT SUGGESTION IN JUNE THAT THEY PROVIDE 20 HOURS OF PRO BONO WORK FREE LEGAL ASSISTANCE TO THE NEEDY EVERY YEAR THE STATE SUPREME COURT SUGGESTED THAT LAWYERS WHO COULDN'T DO THE WORK CONTRIBUTE 350 TO A LEGALAID GROUP THE STATE BAR PLANS TO ASK LAWYERS EVERY YEAR WHETHER THEY CONTRIBUTED THE VOLUNTARY 20 HOURS OR 350 THE LAST TIME I READ THE US CONSTITUTION IT SAID THERE WAS SOMETHING IN THERE ABOUT INVOLUNTARY SERVITUDE AND THAT'S EXACTLY WHAT WE'VE GOT SAID MR TRAWICK A GENERAL CIVIL PRACTITIONER IN SARASOTA WHO USED TO BE ACTIVE IN THE FLORIDA BAR SOME ATTORNEYS ALSO ARE UPSET THAT INTEREST EARNED ON CERTAIN BUSINESS ACCOUNTS THEY HOLD MONEY THAT FORMERLY WAS ABSORBED BY BANKS NOW IS AUTOMATICALLY SWEPT INTO A FUND FOR LEGAL SERVICES FOR THE POOR MR TRAWICK COMPLAINED THAT THE MONEY IS PARCELED OUT BY A GROUP OF VERY LIBERAL ELITISTS BAR SPOKESMAN JERRY BUTTERFIELD RESPONDED THAT ONE PERSON'S LIBERAL CAUSE IS ANOTHER PERSON'S JUSTICE IN AMERICA OTHER LAWYERS RESENT HAVING TO TAKE 30 HOURS OF LEGALEDUCATION CLASSES EVERY THREE YEARS SOME BRISTLE AT THE BAR'S DECISION TO CONSIDER A SPECIFIC RULE ABOUT LAWYERCLIENT SEX A FEW ARE EXASPERATED THAT THE STATE SUPREME COURT IN 1992 ORDERED THEM TO USE RECYCLED PAPER FOR COURT FILINGS STILL OTHERS RESENT A 1993 STATE SUPREME COURT RULE BARRING DISCRIMINATION BY LAWYERS ON THE BASIS OF RACE ETHNICITY GENDER RELIGION NATIONAL ORIGIN DISABILITY MARITAL STATUS SEXUAL ORIENTATION AGE SOCIOECONOMIC STATUS EMPLOYMENT OR PHYSICAL CHARACTERISTICS SOME SAY THE BAR DISCIPLINES LAWYERS TOO HARSHLY OTHERS SAY THE OPPOSITE IS TRUE THE FLORIDA BAR DEFENDS ITS ACTIVITIES AND ARGUES THAT HAVING LAWMAKERS OVERSEE LAWYERS WOULD VIOLATE THE CONSTITUTION'S SEPARATION OF POWERS BETWEEN THE JUDICIAL AND LEGISLATIVE BRANCHES THE FLORIDA BAR IS VERY SELFCONSCIOUS OF ITS SOCIALLY RESPONSIBLE ROLE IN OVERSEEING THE LEGAL PROFESSION SAID MR BUTTERFIELD THE BAR SPOKESMAN HE ADDED THAT THE RENEGADE ATTORNEYS SHOULD THINK ABOUT WHETHER THEY WANT POLITICIANS TO REGULATE THEM UNDER THESE DAYS AND TIMES I COULD SEE LEGISLATORS POSTURING SAYING LET'S KICK LAWYERS IN THE HEAD' HE SAID WILLIAM F BLEWS A SOLE PRACTITIONER IN ST PETERSBURG AND PRESIDENTELECT OF THE BAR SAID EVERYBODY WANTS TO JUST RIDE THE RANGE FREE AND NOT HAVE ANY CONTROL ON THEM OR ANYTHING ELSE BUT THAT'S NOT IN THE BEST INTERESTS OF SOCIETY THE PROPOSED AMENDMENT ISN'T EXPECTED TO GET OUT OF A STATE SENATE COMMITTEE THIS YEAR BUT MR TRAWICK SAID SUPPORTERS HAVE MOMENTUM FOR ANOTHER TRY IN THE FUTURE THERE'S A MOVEMENT AROUND THE COUNTRY IN OUR FAVOR HE SAID WE ARE NOT THE ONLY STATE THAT IS LOOKING TO GO BACK CABLE NEWS NETWORK INC WAS CHARGED WITH CRIMINAL CONTEMPT OF COURT FOR ITS 1990 BROADCAST OF TAPED JAILHOUSE TELEPHONE CONVERSATIONS BETWEEN MANUEL NORIEGA AND HIS ATTORNEYS THE COMPLAINT FILED IN US DISTRICT COURT IN MIAMI BY A SPECIAL US PROSECUTOR STATES THAT CNN A UNIT OF TURNER BROADCASTING SYSTEM INC KNOWINGLY AND WILLFULLY DISOBEYED AN ORDER BY JUDGE WILLIAM M HOEVELER THAT ORDER ISSUED IN NOVEMBER 1990 WHILE THE DEPOSED PANAMANIAN RULER WAS AWAITING TRIAL ON DRUGTRAFFICKING CHARGES PROHIBITED ANY BROADCAST OF THE TAPES IN COURT YESTERDAY ATTORNEYS FOR CNN PLEADED NOT GUILTY AT AN ARRAIGNMENT BEFORE JUDGE HOEVELER TRIAL WAS SET FOR JULY 11 IN A PREPARED STATEMENT ISSUED FROM TURNER HEADQUARTERS IN ATLANTA CNN SAID IT WELCOMES THE OPPORTUNITY FOR JUDGE HOEVELER TO HEAR ALL THE EVIDENCE IN THIS MATTER AND BELIEVES IT WILL NOT BE FOUND TO HAVE VIOLATED ANY OF THE COURT'S ORDERS OFFICIALS AT CNN SAID THE CHARGE IS ONLY AGAINST THE COMPANY AND NOT AGAINST ANY INDIVIDUAL THUS ACCORDING TO ONE ATTORNEY FOR CNN THE ONLY PENALTY COULD BE A FINE LEVIED BY THE COURT OFFICIALS IN THE US ATTORNEY'S OFFICE IN MIAMI DECLINED TO COMMENT FOR FIRST AMENDMENT EXPERTS THE SPECIAL PROSECUTOR'S ACTION CAME AS THE SECOND MAJOR SURPRISE IN CNN'S BATTLES WITH THE COURT THE FIRST OCCURRED IN 1990 AFTER CNN BROADCAST EXCERPTS OF MR NORIEGA'S CONVERSATIONS THAT HAD BEEN TAPED BY OFFICIALS AT A FEDERAL JAIL NEAR MIAMI WHERE HE WAS BEING HELD WHEN JUDGE HOEVELER ISSUED HIS ORDER BARRING FURTHER TELECASTS OF PRIVILEGED ATTORNEYCLIENT CONVERSATIONS CNN CONTINUED THE BROADCASTS AND ASKED FOR A STAY OF THE ORDER FROM THE US SUPREME COURT BUT THE HIGH COURT IN A DEPARTURE FROM PREVIOUS FIRST AMENDMENT DECISIONS REFUSED THE NETWORK'S REQUEST YESTERDAY ATTORNEYS AND LEGAL SCHOLARS QUESTIONED WHETHER THE GOVERNMENT WOULD PREVAIL IN ITS CASE THERE IS A HEAVY ASSUMPTION AGAINST PRIOR RESTRAINT ON THE NEWS MEDIA NOTED LEE LEVINE A PRIVATE COMMUNICATIONS LAWYER IN WASHINGTON EVEN IF CNN VIOLATED THE ORDER HE SAID IT HAD A GOODFAITH BASIS TO DO SO UNTIL THE SUPREME COURT REFUSED THE REQUEST FOR A STAY JUDGE HOEVELER EVENTUALLY LIFTED THE BAN ON THE BROADCAST OF THE TAPES NOTING AT THE TIME THAT AIRING THE TAPES WOULDN'T ENDANGER MR NORIEGA'S CONSTITUTIONAL RIGHT TO RECEIVE A FAIR TRIAL A NEW YORK LAW THAT LIMITS HOW MUCH PHYSICIANS CAN CHARGE MEDICARE RECIPIENTS WAS UPHELD BY THE STATE'S HIGHEST COURT THE ASSOCIATED PRESS REPORTED THE 60 DECISION MEANS THERE WILL BE NO CHANGES IN FEES FOR POOR ELDERLY RECIPIENTS OF MEDICARE THE LAW CAPPING FEES WAS ADOPTED BY THE STATE LEGISLATURE IN 1990 AND HAS BEEN ENFORCED BY THE STATE HEALTH DEPARTMENT WHILE THE COURT FIGHT WAS GOING ON NEW YORK'S TOP COURT ALSO UPHELD THE MANDATORYSENTENCING ASPECT OF THE STATE'S TOUGH DRUG LAWS THE STATE COURT OF APPEALS RULED THAT MANDATORY SENTENCES HAD TO BE IMPOSED ON DEFENDANTS EVEN IF JUDGES DISAGREED AND EVEN IF THE LAWS MAY NOT HAVE DONE MUCH TO CUT DRUG SALES GLENN RUFFENACH CONTRIBUTED TO THIS ARTICLE 9403310016 940331 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO AN EARLY EASTER AND FINALLY A THAW JUMPSTARTS SPRING APPAREL SALES EASTER IS PUTTING THE WINTERWEARY IN A SHOPPING MOOD SAY EAST COAST APPAREL RETAILERS LIKE DRESS BARN AND BURLINGTON COAT FACTORY WAREHOUSE WHO REPORT AN EARLY PICKUP IN SALES FROM LAST YEAR IT'S OUR BEST SPRING IN FOUR YEARS SAYS KRIS ISAACSON AT A NORDSTROM STORE IN SAN FRANCISCO CREDITING UNSEASONABLY DRY WEATHER THERE IN TEXAS DAD & LAD'S SAYS SALES ARE UP 20 A SIGN OF THE RECOVERING STATE ECONOMY BUT RETAILERS ARE FAR FROM SEWING UP THE SEASON PRICES ARE IN LINE WITH LAST YEAR'S OR SLIGHTLY LOWER AS IN THE STORES OF SEATTLEBASED JAY JACOBS KURT BARNARD OF RETAIL MARKETING REPORT IN NEW YORK SEES ONLY A MODEST 4 RISE IN SALES FOR THE SEASON PEOPLE TODAY JUST SPEND LESS ON PREENING HE SAYS GEORGE ROSENBAUM OF LEO J SHAPIRO & ASSOCIATES IN CHICAGO ADDS THAT THE RECENT RISE IN INTEREST RATES MAY PUT A BRAKE ON APPAREL SPENDING SHOPPERS MAY SHIFT TO BIGTICKET ITEMS LIKE FURNITURE WHICH OFTEN NEED FINANCING BEFORE RATES RISE FURTHER HE SAYS FIND THE CARDBOARD SPORTS TRADING CARDS PILE ON THE HIGHTECH GLOSS TO ATTRACT BLASE YOUNGSTERS TRADINGCARD FIRMS ARE TOYING WITH MORE AND MORE SOPHISTICATED GIMMICKS THIS YEAR'S LINEUP FROM ACTION PACKED TRADING CARDS ITASCA ILL INCLUDES MINORLEAGUE BASEBALL CARD INSERTS THAT USE HEATSENSITIVE INK THE INK FADES TO REVEAL A FORECAST OF WHEN THE PLAYER WILL BE CALLED UP TO THE MAJORS NEW BASKETBALL CARDS FROM UPPER DECK CARLSBAD CALIF COME WITH 3D GLASSES SKYBOX INTERNATIONAL WEIGHS HOLOGRAM TECHNOLOGY THAT CREATES A STANDING IMAGE A BATMAN CARD THIS APRIL WILL BE THE FIRST TRYOUT TRADINGCARD FIRMS HAVE BEEN FORCED TO COME OUT WITH NEW IDEAS DUE TO MORE COMPETITION AND AN INDUSTRY SLUMP SAYS ROBERT LIFSON OF ROBERT EDWARD AUCTIONS HOBOKEN NJ BUT HE ISN'T KEEN ON THE NEWFANGLED CARDS AS INVESTMENTS THERE ARE MILLIONS OF THEM HE SAYS THE SPORTSCARD MARKET SHRANK 6 TO 171 BILLION IN 1993 SAYS ACTION PACKED IT WAS A WINTER OF DISCONTENT FOR SKI RESORTS DESPITE GOOD SNOW IN THE EAST NEW ENGLAND RESORTS REPORT A FLAT SEASON EVEN WITH THIS WINTER'S HEAVY SNOWFALL TOO MANY FRIDAY STORMS CURBED TRAVEL SAYS THE VERMONT SKI ASSOCIATION THE COLD HURT TOO SUNDAY RIVER IN MAINE HAD SIX PRIME SKI DAYS WITH TEMPERATURES BELOW ZERO THE EXCEPTION WAS SUGARBUSH VT IT HAD A NEARRECORD SEASON AFTER BOOSTING ITS VACATION BUSINESS WHICH IS LESS WEATHERSENSITIVE THAN WEEKEND TRIPS OUT WEST MEDIOCRE SNOW KEPT RESORTS EVEN FOR THE YEAR BUT THE LACKLUSTER YEAR ISN'T THWARTING EXPANSION TWO UTAH RESORTS PLAN NEW LIFTS VERMONT'S KILLINGTON WILL REPLACE ITS GONDOLA WITH A SPEEDIER ONE AND WILL OPEN NEW TRAILS COLORADO'S VAIL IS PLANNING A 25 INCREASE IN TERRAIN SUNDAY RIVER WILL EXPAND ONTO A NEW MOUNTAIN TELLURIDE COLO SEEKS PERMITS TO DOUBLE ACREAGE WITH SIX NEW LIFTS AND FOUR EATERIES SUGAR BOWL CALIF PLANS A NEW LODGE LIFTS AND TRAILS ONE FLAT YEAR DOESN'T AFFECT THESE PLANS SAY RESORTS WHICH ARE TAKING A LONGER VIEW THE MAYO CLINIC GOT A 35 MILLION CONTRACT FROM THE FEDERAL OFFICE OF NATIONAL DRUG CONTROL POLICY TO PUT TOGETHER A SATELLITEBASED NAVIGATION SYSTEM AND TEST IT ON ITS MEDICAL HELICOPTER THE SYSTEM EVENTUALLY WILL BE USED IN DRUG ENFORCEMENT THE NEEDS OF LAW ENFORCEMENT AND MEDICAL HELICOPTERS ARE VERY SIMILAR SAYS THE CLINIC'S DAVID CLAYPOOL AN UNCENSORED STERN A NEW YORK GUBERNATORIAL RUN MAY GIVE CONTROVERSIAL DISK JOCKEY HOWARD STERN SOME CENSORSHIP RELIEF SAYS GIGI SOHN OF MEDIA ACCESS PROJECT IN WASHINGTON CANDIDATES' SPEECH CAN'T BE RESTRICTED SHE SAYS AND IT'LL BE DIFFICULT TO DISCERN WHEN HE'S SPEAKING AS A CANDIDATE AND WHEN HE'S NOT INTERACTIVE TV IS DIRECT MARKETERS' PREFERRED ROUTE INTO THE INTERACTIVE ARENA SAYS VOS GRUPPO & CAPELL IN NEW YORK OF 130 FIRMS 65 PLAN TO ENTER THE MARKET WITH INTERACTIVE TV BUT MORE 82 VS 67 EXPECT EVENTUALLY TO USE ONLINE COMPUTERS THAN TV SETS OUTFITTED WITH SPECIAL KEYPADS ART APPRECIATION CITIES PONDER A SALES TAX TO FUND CULTURAL GROUPS FACED WITH DWINDLING ARTS BUDGETS SOME REGIONS HAVE ADOPTED OR ARE MULLING A CULTURE TAX SIMILAR TO ONE IN DENVER AND FIVE NEARBY COUNTIES THE 01 SALES TAX THERE RAISES 20 MILLION A YEAR TO FUND GROUPS LIKE THE BOTANICAL GARDENS SAYS CIRULI & ASSOCIATES A RESEARCH FIRM FRESNO CALIF ADOPTED A SIMILAR TAX LAST YEAR WHILE KANSAS AND MISSOURI ARE WORKING TO PUT TO A POPULAR VOTE A SALES TAX OF UP TO 025 IN A FIVECOUNTY BISTATE AREA SUCH A DEDICATED TAX GAINS FAVOR NOT ONLY AMONG ARTS GROUPS BUT ALSO AMONG POLITICIANS SAYS LAURA LOYACONO OF THE NATIONAL CONFERENCE OF STATE LEGISLATURES LAWMAKERS THINK A TAX FOR A SPECIFIC USE IS MORE PALATABLE TO THEIR CONSTITUENTS SHE SAYS EVEN SO A BILL TO EXTEND DENVER'S CULTURE TAX TO 2006 FACES MORE VOCAL OPPOSITION NOW THAN IN 1988 WHEN IT WAS FIRST PASSED AND SALT LAKE COUNTY IN UTAH DEFEATED SUCH A TAX LAST JUNE IN CALIFORNIA AND TENNESSEE FEES FOR SOME VANITY LICENSE PLATES PROVIDE FOR ARTS FUNDING MS LOYACONO SAYS BRIEFS A SIGN OF THE TELECOMMUNICATING 1990S NO COMPUTER IN THIS CAR READS A NOTICE SPOTTED IN AN AUTOMOBILE WINDOW IN NEW YORK CITY A RECENT RACE FOR LAWYERS AT INDIANA UNIVERSITY BLOOMINGTON USED AN AMBULANCE FOR A PACE CAR 9403310015 940331 BUSINESS BRIEF ADOLPH COORS CO LAWSUIT CHALLENGES ALLIANCE BETWEEN MILLER AND MOLSON COORS BREWING CO A UNIT OF ADOLPH COORS CO FILED A LAWSUIT AGAINST RIVALS MILLER BREWING CO MOLSON BREWERIES AND MOLSON COS IN US DISTRICT COURT IN DENVER ALLEGING THEIR ALLIANCE VIOLATES US ANTITRUST LAWS BY RESTRICTING COORS'S ABILITY TO COMPETE IN THE US AND CANADA COORS ALSO ASKED A CANADIAN ARBITRATOR TO ALLOW IT TO SEVER A COORSMOLSON LICENSING PACT UNDER WHICH MOLSON MAKES COORS BEER FOR DISTRIBUTION IN CANADA IN 1993 MILWAUKEEBASED MILLER PURCHASED MOLSON BREWERIES USA THE US DISTRIBUTION ARM OF MOLSON COS AND TOOK A 20 EQUITY POSITION IN THE MOLSON PARTNERSHIP THE TORONTOBASED MOLSON PARTNERSHIP OWNS THE MOLSON BREWERIES MOLSON COS HOLDS A 40 STAKE IN THE PARTNERSHIP AND FOSTER'S BREWING GROUP LTD OF AUSTRALIA HOLDS THE OTHER 40 MILLER IS A UNIT OF PHILIP MORRIS COS COORS SAYS THE MILLERMOLSON ALLIANCE ENCOURAGES MOLSON TO INHIBIT THE SUCCESS OF COORS IN CANADA AND COULD AFFECT MOLSON DECISIONS ABOUT BREWING COORS FOR EXPORT REPRESENTATIVES OF MILLER AND MOLSON SAID THE COMPANIES THINK THE COORS ACTION HAS NO MERIT 9403310014 940331 BUSINESS BRIEF TNP ENTERPRISES INC TEXAS UTILITY UNIT APPLIES TO RAISE ITS RATES BY 89 TEXASNEW MEXICO POWER CO SAID IT FILED AN APPLICATION TO INCREASE ITS RATES BY AN AVERAGE OF 89 OR ABOUT 348 MILLION THE UTILITY IS THE PRINCIPAL WHOLLY OWNED UNIT OF TNP ENTERPRISES INC FORT WORTH TEXAS THE PROPOSED RATE INCREASE MUST BE APPROVED BY THE PUBLIC UTILITY COMMISSION OF TEXAS AND THE TEXAS CITIES THE POWER COMPANY SERVES THE PROPOSED RATE INCREASE FOR RESIDENTIAL CUSTOMERS AVERAGES 83 THE COMPANY SAID TEXASNEW MEXICO POWER SAID THE REQUEST IS NEEDED PRIMARILY TO RECOVER ITS OPERATING EXPENSES AND TO EARN A REASONABLE RETURN ON INVESTED CAPITAL FOR THE YEAR ENDED SEPT 30 1993 THE COMPANY SAID ITS TOTAL EARNED RETURN ON COMMON EQUITY WAS 348 IT IS REQUESTING A 122 RETURN THE UTILITY COMPANY EXPECTS A HEARING ON THE MERITS OF ITS REQUEST TO BEGIN THIS JULY AND RATES COULD BE IN EFFECT IN OCTOBER TEXASNEW MEXICO POWER SERVES 90 TOWNS AND CITIES IN TEXAS AND NEW MEXICO 9403310013 940331 BUSINESS BRIEF LESLIE FAY COS SLUGGISH SALES RESTRUCTURING CITED FOR 4THQUARTER LOSS BLAMING SLUGGISH APPAREL RETAIL SALES AND ADDITIONAL COSTS RELATED TO ITS CHAPTER 11 RESTRUCTURING LESLIE FAY COS REPORTED A FOURTHQUARTER LOSS OF 489 MILLION FOR THE QUARTER THE APPAREL MAKER IN NEW YORK SAID IT LOST 261 A SHARE ON SALES OF 1233 MILLION INCLUDED IN THE QUARTER WAS A 214 MILLION CHARGE FOR REORGANIZATIONRELATED COSTS NOTING THAT ITS 1992 RESULTS HAVE BEEN RESTATED AND ARE UNAUDITED LESLIE FAY DIDN'T PROVIDE COMPARABLE FOURTHQUARTER RESULTS LESLIE FAY RESTATED ITS 1991 AND 1992 FINANCIAL RESULTS LAST YEAR AFTER AN INTERNAL PROBE REVEALED THAT AN INTERNAL ACCOUNTING FRAUD HAD CAUSED MILLIONS OF DOLLARS OF FALSE ENTRIES TO BE RECORDED INTO THE COMPANY'S BOOKS LESLIE FAY HAS BEEN OPERATING UNDER PROTECTION OF CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE SINCE APRIL 1993 9403310012 940331 BUSINESS BRIEF MCDERMOTT INTERNATIONAL INC VENTURES IN RUSSIA FORMED FOR MARINE CONSTRUCTION MCDERMOTT INTERNATIONAL INC NEW ORLEANS SAID IT FORMED JOINT VENTURES WITH RUSSIA'S JSC AMUR SHIPBUILDING PLANT FOR MARINE CONSTRUCTION SHIPBUILDING AND FABRICATION OF SHIP PARTS AT THE AMUR SHIPYARD IN THE KHABAROVSK REGION OF THE RUSSIAN FAR EAST ONE VENTURE MCAMUR CONSTRUCTION SERVICES CO WILL PROVIDE FABRICATION SERVICES FOR MARINECONSTRUCTION PROJECTS IN THE OFFSHORE WATERS OF FAR EAST RUSSIA MCDERMOTT AND JSC WILL OWN EQUAL SHARES OF THE VENTURE AND EXPECT MCAMUR WILL PARTICIPATE IN THE EXPANSION OF OIL AND GAS DEVELOPMENT THERE THE SECOND JOINT VENTURE TO BE CALLED MCAMUR SHIPBUILDING CO WILL MARKET THE SHIPBUILDING AND SHIPPART FABRICATION CAPABILITIES OF THE AMUR SHIPYARD ON A WORLDWIDE BASIS EACH PARTNER WILL OWN 50 OF THE COMPANY THE AMUR SHIPYARD IS IN KOMSOMOLSK ON THE AMUR RIVER 9403310011 940331 BUSINESS BRIEF CHARTER MEDICAL CORP COMPANY TO ACQUIRE FACILITY AND 46 PSYCHIATRIC HOSPITALS CHARTER MEDICAL CORP SAID IT AGREED TO PURCHASE 46 PSYCHIATRIC HOSPITALS AND ONE OUTPATIENT FACILITY FROM NATIONAL MEDICAL ENTERPRISES INC FOR 152 MILLION THE TRANSACTION WHICH WAS EXPECTED ALSO INVOLVES THE ACQUISITION BY CHARTER MEDICAL OF APPROXIMATELY 48 MILLION IN WORKING CAPITAL MOST OF WHICH IS ACCOUNTS RECEIVABLE THAT CHARTER MEDICAL EXPECTS TO RECOVER IN FULL NATIONAL MEDICAL HAD BEEN NEGOTIATING TO SELL THE HOSPITALS TO CHARTER MEDICAL OF MACON GA FOLLOWING A SPATE OF PROBLEMS AT THE FACILITIES NATIONAL MEDICAL BASED IN SANTA MONICA CALIF PAID HUNDREDS OF MILLIONS OF DOLLARS TO SEVERAL INSURANCE COMPANIES LAST YEAR TO SETTLE CHARGES OF BILLING FRAUD AND MISTREATMENT OF PATIENTS THE ACQUISITION WHICH CHARTER MEDICAL EXPECTS TO BE SUBSTANTIALLY COMPLETED BY MAY 31 EXPANDS CHARTER MEDICAL'S REACH BY FIVE STATES IT HAS CURRENT OPERATIONS IN 26 STATES AND TWO FOREIGN COUNTRIES 9403310010 940331 BUSINESS BRIEF UNITED PARCEL SERVICE OF AMERICA EARNINGS ROSE 36 IN 1993 DESPITE LARGE LOSSES ABROAD UNITED PARCEL SERVICE OF AMERICA INC REPORTED A 36 INCREASE IN 1993 EARNINGS DESPITE HEAVY LOSSES OVERSEAS THE ATLANTABASED DELIVERY COMPANY SAID NET INCOME ROSE TO 8096 MILLION FROM 5161 MILLION IN 1992 EXCLUDING ONETIME ACCOUNTING CHANGES 1992 EARNINGS TOTALED 765 MILLION REVENUE CLIMBED 8 TO 178 BILLION FROM 165 BILLION THE COMPANY HAD AN OVERSEAS LOSS OF 267 MILLION SLIGHTLY LOWER THAN ITS OVERSEAS LOSS OF 276 MILLION IN 1992 INTERNATIONAL REVENUE ROSE TO 196 BILLION FROM 179 BILLION BOOSTED BY AIR BUSINESS BUT ANALYSTS WERE EXPECTING A MORE ROBUST IMPROVEMENT AND SAID THE COMPANY'S GOAL OF BECOMING PROFITABLE OVERSEAS BY 1996 APPEARED UNLIKELY BUT UPS SAID IT STILL STANDS BY ITS GOAL SO FAR UPS HAS POSTED LOSSES OF MORE THAN 1 BILLION OVERSEAS MOSTLY IN EUROPE FIERCE COMPETITION HIGHER COSTS AND SLOW DEMAND HAVE DOGGED ITS ATTEMPTS TO BECOME PROFITABLE MOST RECENTLY THE DEEP RECESSION IN EUROPE HAS HURT PERFORMANCE STILL UPS SAID IT HAS NO PLANS TO CURTAIL ITS OVERSEAS OPERATIONS 9403310009 940331 BUSINESS BRIEF CAMBRIDGE BIOTECH CORP SPECIAL COUNSEL IS HIRED IN AUDITWORK SUSPENSION CAMBRIDGE BIOTECH CORP SAID IT HIRED A SPECIAL COUNSEL TO INVESTIGATE CERTAIN TRANSACTIONS THAT IT SAID CAUSED ITS OUTSIDE AUDITORS TO SUSPEND THEIR AUDIT THE BIOTECH COMPANY IN WORCESTER MASS WHICH DEVELOPS VACCINES AND DIAGNOSTICS FOR HUMANS AND ANIMALS SAID ITS INDEPENDENT AUDITORS DELOITTE & TOUCHE SUSPENDED WORK ON THEIR AUDIT OF ITS FINANCIAL STATEMENTS FOR FISCAL 1993 BECAUSE OF CONCERNS ABOUT CERTAIN TRANSACTIONS AND THEIR POSSIBLE IMPACT ON THE COMPANY'S FINANCIAL RESULTS JAMES C BASS CHIEF FINANCIAL OFFICER SAID THAT WE CANNONT DETERMINE WHETHER OR NOT A FRAUD HAS BEEN COMMITTED THE COMPANY SAID IN A NEWS RELEASE THAT ON THE BASIS OF THE CONCERNS REPORTED BY THE AUDITORS IT HAS ENGAGED SPECIAL COUNSEL TO ASSIST A SPECIAL COMMITTEE OF INDEPENDENT DIRECTORS IN INVESTIGATING THE MATTER OFFICIALS DECLINED FURTHER COMMENT ON THE MATTER OR ON WHETHER ANY EXECUTIVES HAVE BEEN SUSPENDED OR FIRED IN CONNECTION WITH THE AUDITOR'S CONCERNS 9403310008 940311 REVIEW & OUTLOOK EDITORIAL MINORITY DIVERSITY CONVENTIONAL WISDOM HAS IT THAT MINORITY AND INNERCITY VOTERS TYPICALLY SUPPORT LIBERAL DEMOCRATS AND WILL OFTEN IGNORE ETHICAL LAPSES BUT DEMOCRATIC PRIMARIES IN TEXAS THIS WEEK ALONG WITH OTHER RECENT ELECTIONS SUGGEST THAT'S WRONG THAT SUCH VOTERS ARE INCREASINGLY ATTRACTED TO MODERATES WHO WOULD RATHER BUILD RACIAL BRIDGES THE CONGRESSIONAL BLACK CAUCUS WAS SURPRISED THIS WEEK BY RESULTS IN TWO CONGRESSIONAL PRIMARIES IN A HOUSTON OPEN SEAT THE FIRSTPLACE FINISHER WAS BEVERLY CLARK A MODERATE BLACK DEMOCRAT WHO CAMPAIGNED AS THE FAMILY VALUES CANDIDATE AND WON 37 OF THE VOTE EVEN WHILE ONLY SPENDING A PALTRY 9000 CONSERVATIVES INCLUDING PAUL WEYRICH'S FREE CONGRESS FOUNDATION GAVE HER CRUCIAL SUPPORT MS CLARK DID WELL AMONG THE 27 OF THE DISTRICT'S VOTERS WHO ARE BLACK BUT ALSO FORGED BONDS WITH SOCIALLY CONSERVATIVE WHITES HER OPPONENT IN A RUNOFF NEXT MONTH WILL BE KEN BENTSEN A NEPHEW OF TREASURY SECRETARY LLOYD BENTSEN ALMOST AS SHOCKING WAS THE LANDSLIDE DEFEAT OF REP CRAIG WASHINGTON AN OFFICEHOLDER FOR 22 YEARS IN A SOLIDLY MINORITY DISTRICT HE LOST 63 TO 37 TO SHEILA JACKSON LEE A HOUSTON CITY COUNCIL MEMBER AND FORMER JUDGE MS LEE ATTACKED REP WASHINGTON FOR MISSING A QUARTER OF ALL HOUSE VOTES LAST YEAR SHE ALSO SCORED POLITICAL POINTS BY NOTING MR WASHINGTON VOTED AGAINST A CELEBRATION TO THANK THE US MILITARY FOR ITS EFFORTS IN THE GULF WAR MR WASHINGTON A NAFTA OPPONENT CRITICIZED MS LEE FOR BACKING THE TRADE TREATY BUT HIS ATTACK FLOPPED AS BUSINESS AND HISPANIC NAFTA SUPPORTERS FLOCKED TO MS LEE REP WASHINGTON MIGHT WELL HAVE GLIDED UNOPPOSED THROUGH HIS PRIMARY WERE IT NOT FOR A TERMLIMIT LAW PASSED BY HOUSTON VOTERS IN 1991 THE LAW LIMITED THE TENURE OF MS LEE ON THE LOCAL CITY COUNCIL AND HELPED CONVINCE HER TO CHALLENGE AN INCUMBENT CONGRESSMAN WHO'D BEEN UNOPPOSED IN PREVIOUS YEARS WE'VE LONG MAINTAINED THAT TERM LIMITS WILL ENCOURAGE WELLRESPECTED INCUMBENTS TO TRY FOR HIGHER OFFICE AND THE EVIDENCE IN STATE AFTER STATE INDICATES THAT IT DOES TERMLIMIT SUPPORTERS ALSO SHOWED THEY HAVE POLITICAL MUSCLE IN TEXAS STATE REP JIM TALLAS A REPUBLICAN WHO HELPED KILL TERM LIMITS IN THE LEGISLATURE LAST YEAR WAS CRUSHED 71 TO 29 BY A POLITICAL NEWCOMER WHOSE MAIN ISSUE WAS TERM LIMITS THE STRONG SHOWINGS OF MS CLARK AND MS LEE ARE THE LATEST INDICATIONS THAT MANY MINORITY VOTERS WILL NO LONGER PUT UP WITH INEFFECTIVE LEADERS WHO BLAME OUTSIDE FORCES FOR THE PROBLEMS OF THE INNER CITY IN 1992 CHICAGO REP CHARLES HAYES A TOP HOUSE BANK ABUSER WAS DEFEATED BY BOBBY RUSH MR RUSH IS A FORMER BLACK PANTHER WHO NOW CRUSADES AGAINST JUVENILE CRIME BY SAYING WE DON'T NEED TO MAKE EXCUSES FOR OUR YOUNG PEOPLE IN A NEIGHBORING CHICAGO DISTRICT RACEBAITING REP GUS SAVAGE LOST IN A LANDSLIDE TO MEL REYNOLDS WHO LIKE MS LEE SUPPORTED NAFTA AND HAD STRONG BUSINESS SUPPORT MANY BLACK VOTERS CONTINUE TO SUPPORT INCREASED FUNDING FOR FEDERAL PROGRAMS BUT THEY'RE ALSO INTERESTED IN POLICIES THAT PROMOTE ECONOMIC GROWTH AND PERSONAL RESPONSIBILITY IT'S LIKELY THAT MANY MORE BLACK CANDIDATES WILL START MOVING CENTER SOUNDING MORE LIKE BEVERLY CLARK AND SHEILA JACKSON LEE AND LESS LIKE GUS SAVAGE AND CRAIG WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR FREE CONGRESS PAC WSJ MARCH 31 1994 9403110047 YY94 MM03 9403310007 940331 WHO'S NEWS CIT GROUP HOLDINGS INC CIT GROUP HOLDINGS INC NEW YORK ERNEST D STEIN 54 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL SUCCEEDING WILLIAM BARONOFF WHO BECOMES EXECUTIVE VICE PRESIDENT AND SPECIAL COUNSEL TO THE PRESIDENT A NEW POSITION MR STEIN WAS DEPUTY GENERAL COUNSEL AT CIT A 14 BILLION ASSETBASED LENDER CIT IS 60OWNED BY DAIICHI KANGYO BANK LTD TOKYO AND 40 OWNED BY NEW YORK'S CHEMICAL BANKING CORP 9403310005 940331 MONEY MARKET YIELDS APPROACH 3 LEVEL DURING LATEST WEEK NEW YORK FOR THE EIGHTH CONSECUTIVE WEEK YIELDS ON TAXABLE MONEYMARKET FUNDS ROSE IN THE WEEK ENDED TUESDAY PUSHING WITHIN A HAIR OF THE 3 MARK IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS ROSE TO 298 FROM 290 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS EDGED UP TO 293 FROM 286 WHILE THE 30DAY SIMPLE YIELD ROSE TO 286 FROM 282 THE 30DAY COMPOUND YIELD INCHED UP TO 290 FROM 286 ASSETS OF 649 TAXABLE FUNDS THREE MORE THAN THE PREVIOUS WEEK FELL BY 469 BILLION TO 47616 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 413 BILLION OF THE OUTFLOW WHILE INDIVIDUAL INVESTORS TOOK OUT THE REMAINING 5605 MILLION WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE RISING YIELDS TO LAST WEEK'S RISE IN SHORTTERM YIELDS BY THE FEDERAL RESERVE AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY ONE DAY TO 48 DAYS THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD SLIPPED TO 178 FROM 182 IN THE LATEST WEEK THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 278 FOR SOMEONE PAYING 36 IN TAXES AND TO 295 FOR THOSE WHO PAY 396 ASSETS OF 354 TAXEXEMPT FUNDS SIX MORE THAN LAST WEEK DECREASED BY 6241 MILLION TO 11588 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY SHORTENED BY TWO DAYS TO 51 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9403310004 940331 ABREAST OF THE MARKET STOCKS PLUNGE TO LOWEST CLOSE SINCE NOVEMBER OFF 7227 POINTS BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SELLERS SWAMPED THE STOCK MARKET FOR THE FIFTH STRAIGHT DAY TAKING THE DOW JONES INDUSTRIAL AVERAGE TO ITS LOWEST LEVEL SINCE EARLY NOVEMBER THE BROADBASED DECLINES CAME AS INTEREST RATES ROSE AGAIN AND THE YIELD ON THE TREASURY'S 30YEAR BOND CLIMBED TO 710 FROM 706 ON TUESDAY BATTERED BY A WAVE OF COMPUTERGUIDED SELL PROGRAMS THE DOW INDUSTRIALS TUMBLED 7227 POINTS TO 362675 ITS LOWEST CLOSE SINCE NOV 4 IT WAS THE BIGGEST ONEDAY SLIDE IN THE DOW SINCE FEB 4 WHEN THE FEDERAL RESERVE RAISED SHORTTERM INTEREST RATES SPARKING A 96POINT DROP IN THE DOW STANDARD & POOR'S 500STOCK DROPPED 693 TO 44555 AND THE NASDAQ COMPOSITE INDEX PLUNGED 1038 TO 74491 ITS LOWEST LEVEL SINCE SEPT 21 TRADING ON THE NEW YORK STOCK EXCHANGE WAS EXTREMELY HECTIC WITH ABOUT 390050000 SHARES CHANGING HANDS YESTERDAY UP FROM 301140000 SHARES THE PREVIOUS DAY DECLINING ISSUES OUTNUMBERED ADVANCERS 2041 TO 357 YESTERDAY'S SHARP SELLOFF CAPPED A WILD DAY IN THE STOCK MARKET STOCK PRICES PLUNGED IN THE FIRST HOUR OF TRADING TRIGGERING THE NEW YORK STOCK EXCHANGE'S 50POINT UPTICK RULE THAT RULE SLOWS COMPUTERGUIDED PROGRAM TRADING WHENEVER THE INDUSTRIAL AVERAGE MOVES UP OR DOWN 50 POINTS FROM THE PREVIOUS DAY'S CLOSE THOUGH THE STOCK MARKET RECOVERED MOST OF ITS LOST GROUND BY NOON A SERIES OF SELL PROGRAMS HIT THE DOW IN THE AFTERNOON WIPING 38 POINTS FROM THE INDUSTRIAL AVERAGE ACCORDING TO BIRINYI ASSOCIATES A FINANCIALCONSULTING FIRM THE SELLING SNOWBALLED PROMPTING THE BIG BOARD TO ACTIVATE ITS 50POINTUPTICK RULE AGAIN IT WAS ONLY THE SECOND TIME EVER THAT THE EXCHANGE HAS ACTIVATED THE UPTICK RULE TWICE IN ONE DAY RIGHT NOW PEOPLE HAVE LOOKED AT THE GLASS AND IT'S NO LONGER HALF FULL IT'S COMPLETELY EMPTY SAID LASZLO BIRINYI WHO HEADS BIRINYI ASSOCIATES BUT THIS HAS HAPPENED BEFORE AND I EXPECT IT WILL PASS MR BIRINYI SAID WHAT HE FINDS PARTICULARLY DISCONCERTING IS THE FEROCITY OF YESTERDAY'S PROGRAM SELLING I AM MORE DISTURBED BY THE INTENSITY OF THESE PROGRAM TRADES BECAUSE IT IS CREATING THIS ILLUSION THAT THERE IS A LOT MORE WEAKNESS THAN THERE REALLY IS SAID MR BIRINYI CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST AT MERRILL LYNCH & CO SAID HE EXPECTS THE RISE IN YIELDS TO TRIGGER MORE STOCK MARKET SELLING OVER THE NEAR TERM MY GUESS IS THAT PORTFOLIO MANAGERS ESPECIALLY MUTUAL FUND PORTFOLIO MANAGERS ARE GOING TO WANT TO HOLD MORE CASH HE SAID MANY OBSERVERS HAVE FEARED THAT MANY MUTUALFUND INVESTORS ESPECIALLY NEOPHYTES WHO HAVE POURED MONEY INTO THE MARKET OVER THE PAST YEAR WOULD BAIL OUT IF STOCKS FELL INTO A CORRECTION MR CLOUGH DOESN'T NECESSARILY EXPECT AN EXODUS BUT HE SAID FUND MANAGERS LIKELY WILL DO SOME MORE PREEMPTIVE SELLING TO CREATE A CUSHION AGAINST REDEMPTIONS MR CLOUGH CONTINUES TO RECOMMEND THAT INVESTORS HOLD 60 STOCKS 25 BONDS AND 15 CASH HE DOESN'T EXPECT TO JOIN THE PARADE OF STRATEGISTS WHO HAVE PARED THEIR STOCK ALLOCATIONS THIS WEEK BUT HE SAID HE MIGHT RECOMMEND A CASHTOBONDS SWITCH SOON IF THE LONG BOND YIELD CONTINUES TO APPROACH 725 SOME TECHNOLOGY STOCKS MANAGED TO SNAP BACK SOME FROM THEIR RECENT DRUBBING MICROSOFT ADDED 1 1/8 TO 83 5/8 LOTUS DEVELOPMENT GAINED 1/4 TO 70 1/4 AND 3COM ROSE 1/8 TO 54 3/4 ON THE NASDAQ STOCK MARKET COMPAQ COMPUTER MEANWHILE INCREASED 2 1/2 TO 98 1/4 AND INTERNATIONAL BUSINESS MACHINES ROSE 7/8 TO 53 1/2 BUT ECONOMICALLY SENSITIVE ISSUES CONTINUED TO TUMBLE CATERPILLAR DROPPED 1 3/8 TO 109 1/2 GENERAL MOTORS LOST 1 3/4 TO 54 1/4 AND UNITED TECHNOLOGIES SKIDDED 2 3/8 TO 62 1/2 CYCLICALS HAVE BEEN AMONG THE STRONGEST STOCKS ALL YEAR AND HAVE BEEN TARGETED FOR PROFITTAKING TRADERS SAID UTILITIES STOCKS WERE ALSO BATTERED THE DOW JONES UTILITIES AVERAGE LOST 323 OR 161 TO 19800 ITS LOWEST LEVEL SINCE JULY 1991 THAT IS PARTICULARLY TROUBLING TO MANY PEOPLE WHO VIEW THAT AVERAGE AS A LEADING INDICATOR FOR THE OVERALL MARKET ACCLAIM ENTERTAINMENT LOST 5 3/8 TO 13 3/4 ON NASDAQ AFTER WMS INDUSTRIES DIDN'T RENEW A CONTRACT WITH THE COMPANY AS REPORTED WMS AND NINTENDO OF AMERICA HAVE FORMED A JOINT VENTURE TO MARKET 64BIT VIDEO GAMES EXCLUSIVELY FOR NINTENDO'S PROJECT REALITY HOME SYSTEM ACCLAIM HAD BEEN MARKETING WMS'S GAMES FOR HOME USE FOR THE PAST FIVE YEARS SHARES OF GIANT FOOD PLUNGED 94 OR 2 3/8 TO 22 7/8 ON THE AMERICAN STOCK EXCHANGE THE OPERATOR OF RETAIL SUPERMARKET CHAINS LATE YESTERDAY SAID FOURTHQUARTER NET INCOME WAS 61 CENTS A SHARE COMPARED WITH 62 CENTS IN THE YEAREARLIER PERIOD AND BELOW ANALYSTS' ESTIMATES THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX TUMBLED 889 TO 44554 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DECLINED 396 TO 24734 AMERICAN PRESIDENT PLUMMETED 203 OR 6 1/8 TO 24 AFTER THE COMPANY SAID IT EXPECTS ABOUT BREAKEVEN EARNINGS FROM OPERATIONS IN THE FIRST QUARTER EXCLUDING ABOUT 10 MILLION OF EARNINGS FROM COLLECTION OF DESERT STORM DETENTION CHARGES AND REAL ESTATE SALES TO BE RECOGNIZED IN THE QUARTER A FEW STOCKS WERE HELPED BY POSITIVE RECOMMENDATIONS FROM ANALYSTS SHARES OF HEALTHCARE COMPARE JUMPED 1 1/8 TO 20 3/8 AFTER KIDDER PEABODY RAISED ITS RATING ON THE STOCK TO STRONG BUY FROM OUTPERFORM KIDDER MAINTAINED ITS 1994 EARNINGS ESTIMATE OF 130 A SHARE AND SAID IT EXPECTS HEALTHCARE TO EXCEED THE BROKERAGE FIRM'S 1995 PROJECTION OF 150 THE DOWNERS GROVE ILL COMPANY EARNED 108 LAST YEAR LAKEHEAD PIPE LINE JUMPED 94 OR 2 1/2 TO 29 ON THE HEELS OF A SMITH BARNEY SHEARSON UPGRADE TO OUTPERFORM FROM NEUTRAL SHARES OF AO SMITH RELINQUISHED 107 OR 3 3/4 TO 31 3/8 DESPITE ITS ESTIMATE THAT 1994 FIRSTQUARTER EARNINGS WILL BE 71 CENTS TO 76 CENTS A SHARE UP FROM LAST YEAR'S RECORD OF 64 CENTS MORRISON RESTAURANTS GAINED 1 OR 44 TO 23 1/2 AFTER POSTING THIRDQUARTER NET INCOME OF 33 CENTS A SHARE COMPARED WITH 28 CENTS IN THE YEAREARLIER PERIOD THE COMPANY ALSO SAID CASH DIVIDENDS ARE EXPECTED TO GROW AT 5 ANNUALLY STOCKS RALLIED TOWARD BREAKEVEN TERRITORY SEVERAL TIMES IN THE SESSION BUT SELLING PRESSURE INTENSIFIED EACH TIME THE DOW JONES INDUSTRIAL AVERAGE APPROACHED 3700 THE FINAL REBOUND FAILED AS BOND PRICES TURNED SHARPLY LOWER SAID MICHAEL BIRCH AN INDEX ARBITRAGE TRADER AT KIDDER PEABODY & CO DUDLEY EPPEL SENIOR VICE PRESIDENT AND HEAD OF EQUITY TRADING AT DONALDSON LUFKIN & JENRETTE SAID SELLING BY VERY SHORTTERM PLAYERS KNOWN AS DAY TRADERS PLAYED A LARGE ROLE IN THE LATE SLIDE SOME HAD BOUGHT STOCKS EARLIER IN THE DAY BETTING THAT THE MARKET WOULD RECOVER WHEN PRICES BEGAN TO RETREAT INSTEAD THEY BAILED OUT OF POSITIONS 9403310003 940331 WORK TO DO JOB MARKET PICKS UP AND POSSIBLY FASTER THAN WIDELY REALIZED MIDDLE MANAGERS GET PLACED NOW AT A QUICKER PACE HELPWANTED ADS GROW BUT LAYOFFS STILL GRIND ON BY AMANDA BENNETT STAFF REPORTER OF THE WALL STREET JOURNAL AMERICA'S JOBLESS RECOVERY IS FINALLY STARTING TO LOOK A LITTLE DIFFERENT LIKE A RECOVERY THAT IS CREATING JOBS AND PROBABLY FASTER THAN MANY THINK MANY ECONOMISTS AND COMPANIES SAY THE JOB MARKET TURNED A CORNER IN RECENT MONTHS OUTPLACEMENT FIRMS SAY OUTOFWORK MIDDLE MANAGERS ARE GETTING NEW JOBS FASTER HELPWANTED ADVERTISING IS GROWING SMALL COMPANIES THAT HAVE LONG PUT OFF HIRING ARE FINALLY ADDING STAFF SOME BIG COMPANIES ARE TURNING FROM CUTTING BACK TO REHIRING AND EVEN BEGINNING TO RESUME HIRING BEFORE FINISHING THE CUTBACKS AND HEADHUNTERS SAY DEMAND FOR EXECUTIVES IS STRONG THE JOB PICTURE HAS DEFINITELY PICKED UP SAYS GAIL FOSLER CHIEF ECONOMIST AT THE CONFERENCE BOARD EMPLOYMENT HAS BEEN GROWING AT VARYING RATES FOR ABOUT A YEAR AND A HALF BUT IN THE PAST SIX MONTHS THE PACE HAS BEEN STEADIER AND THAT CONSISTENCY COUNTS EXCEPT FOR JANUARY WHEN SEVERE WEATHER AND THE LOS ANGELES EARTHQUAKE DISRUPTED THE ECONOMY THE GOVERNMENT'S PAYROLL EMPLOYMENT FIGURES SHOW THAT BUSINESSES HAVE CREATED MORE THAN 150000 JOBS A MONTH NET OF JOBS LOST AS A RESULT UNEMPLOYMENT HAS DROPPED FASTER SINCE DECEMBER NOW THE HIRING MOMENTUM IS EXPECTED TO ROLL ALONG IN THE DAYS AHEAD LYNN MCINTYRE HAD BEEN LOOKING FOR A JOB IN WASHINGTON DC SINCE LAST AUGUST THIS MONTH SHE FINALLY LANDED ONE AS AN ACCOUNT MANAGER AT THE MEDIACENTER A FIRM THAT SELLS A DATABASE TO TELEVISIONADVERTISING SALES FORCES IN FACT FIVE OF THE SEVEN MEMBERS OF THE INFORMAL SUPPORT GROUP OF UNEMPLOYED PEOPLE THAT MS MCINTYRE JOINED HAVE LANDED JOBS IN THE PAST SIX WEEKS THE JOB MARKET SEEMED TO SUDDENLY PERK UP SHE SAYS WE ARE LOOKING FOR A REAL STRONG YEAR ADDS JO BREDWELL SENIOR VICE PRESIDENT AT BERNARD HODES ADVERTISING A LARGE RECRUITMENT ADVERTISING AGENCY THE WORST IS BEHIND US WHEN THE BUREAU OF LABOR STATISTICS REPORTS MARCH EMPLOYMENT FIGURES TOMORROW THE NUMBERS ARE EXPECTED TO SHOW A CONTINUED BRISK CLIMB IN JOBS THOUGH ONE MONTH'S STATISTICS MIGHT EASILY TURN OUT TO BE A FLUKE AS JANUARY SHOWED NONETHELESS NO ONE IS CALLING THIS JOB MARKET ROBUST MANY COMPANIES ARE STILL CUTTING PAYROLLS WHEN HIRING THEY DO SO SPARINGLY SOME INDUSTRIES SUCH AS DEFENSE AND SOME SECTORS OF SOCIETY SUCH AS THE MILITARY ARE STILL DOWNSIZING AND PUMPING THOUSANDS OF JOB SEEKERS INTO THE MARKET SOME REGIONS SUCH AS CALIFORNIA AND THE NORTHEAST ARE RECOVERING MORE SLOWLY THAN THE REST OF THE NATION JOB COUNSELORS ALSO SEE A HARD CORE OF WORKERS UNDER OR OVERQUALIFIED WHO ARE STILL DIFFICULT TO REEMPLOY COMPETITION FOR JOBS REMAINS FIERCE AND MANY PEOPLE ARE HAVING TO TAKE JOBS THAT ARE LESS ATTRACTIVE AND PAYING LESS THAN THEY WANT WHAT'S MORE THE JOB CUTS OF THE PAST FEW YEARS WERE SO WIDE AND SO DEEP THAT MANY PEOPLE EVEN AMONG THE EMPLOYED STILL FEEL VULNERABLE NOBODY FEELS TOTALLY SAFE SAYS MICHAEL BRENNER A PARTNER IN LAMALIE AMROP INTERNATIONAL AN EXECUTIVESEARCH FIRM THE MINIMUM LEVEL OF ANXIETY OVER EMPLOYMENT HAS GONE UP PERMANENTLY THAT SAID BUSINESS CONFIDENCE IS CLEARLY IMPROVING FOR THE FIRST TIME IN ABOUT A DECADE NEARLY AN EQUAL NUMBER OF CHIEF EXECUTIVE OFFICERS SURVEYED BY THE CONFERENCE BOARD SAY THEY EXPECT EMPLOYMENT TO RISE AS EXPECT IT TO FALL LAST YEAR ONLY 20 EXPECTED EMPLOYMENT TO INCREASE WHILE 30 WERE EXPECTING A DECREASE THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS A SMALLBUSINESS TRADE GROUP REPORTED THAT IN FEBRUARY 18 OF SMALL COMPANIES SAID THEY WERE FINDING IT HARD TO FILL JOBS THAT WAS MORE THAN IN ANY OTHER FEBRUARY IN FIVE YEARS A YEAR EARLIER THE PERCENTAGE WAS 13 GORDON RICHARDS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS SEES THE SOCALLED JOBS GAP CLOSING FAST IN 1992 HE CALCULATES THE ECONOMY CREATED 15 MILLION FEWER JOBS THAN WOULD HAVE BEEN EXPECTED AT THAT STAGE OF THE RECOVERY LAST YEAR THE DISPARITY SHRANK TO ABOUT 670000 BY YEAR END HE PREDICTS THE GAP WILL VANISH IN FACT SOME ECONOMISTS ARE ALREADY STARTING TO FRET THAT UNEMPLOYMENT MAY BE TOO LOW WHEN UNEMPLOYMENT DROPS BELOW WHAT ECONOMISTS CALL ITS NATURAL RATE THE SCARCITY OF WORKERS FUELS INFLATION BY INCREASING WAGE DEMANDS FEW PEOPLE THINK THAT POINT HAS BEEN REACHED BUT QUITE A FEW THINK THEY SPY IT RIGHT AROUND THE CORNER DAVID WYSS HEAD OF RESEARCH AT DRI/MCGRAWHILL SAYS HE EXPECTS 1994 TO END WITH AN UNEMPLOYMENT RATE BELOW 60 A LEVEL AT WHICH MANY BELIEVE LABOR SHORTAGES BEGIN TO DEVELOP UNEMPLOYMENT STOOD AT 65 OF THE WORK FORCE IN FEBRUARY WE ARE GETTING WITHIN TOUCHING DISTANCE OF FULL EMPLOYMENT HE SAYS IT'S BEEN A LONG TIME COMING EVEN THOUGH THE COUNTRY'S ECONOMIC RECOVERY BEGAN BACK IN MARCH 1991 THE PACE OF JOB CREATION WAS TEPID FOR EXAMPLE NEW JERSEY WHICH WAS HIT HARDER THAN MOST STATES HAS SO FAR REGAINED ONLY ABOUT A THIRD OF THE 262000 JOBS IT LOST DURING THE RECESSION IN TYPICAL RECOVERIES SAYS SAMUEL EHRENHALT MIDATLANTIC COMMISSIONER FOR THE BUREAU OF LABOR STATISTICS THE STATE HAD REGAINED ALL ITS JOB LOSSES BY THIS POINT IN THE RECOVERY CLEARLY SENTIMENT IS IMPROVING DAVID LITTMANN SENIOR ECONOMIST AT COMERICA INC IN DETROIT SEES THE CHANGE IN CONFIDENCE IN HIS MONTHLY REGIONAL SURVEY FOR THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT THE PURCHASING MANAGERS' HIRING INDEX WHICH REFLECTS RECENT HIRING HAS BEEN STRENGTHENING SINCE THE MIDDLE OF LAST YEAR IN OCTOBER THE INDEX JUMPED TO 59 FROM BELOW 50 AT THE BEGINNING OF 1993 HOWEVER THE MANAGERS' COMMENTS IN THE SURVEY WERE STILL DOWNBEAT DO MORE WORK DON'T HIRE MORE PEOPLE ONE RESPONDENT PENNED ONTO THE SURVEY THIS MONTH THOUGH THE INDEX JUMPED AGAIN TO OVER 64 AND RESPONDENTS' COMMENTS IN AN INFORMAL TELEPHONE POLL WERE FAR MORE POSITIVE HIRING TO PICK UP ON THE NEED FOR EXPANDED CAPACITY A DIRECT RESULT OF INCREASED DEMAND ONE SAID ANOTHER COMMENTED EMPLOYMENT INCREASING BECAUSE OF NEW PROGRAMS AND SALES HIRING IS PICKING UP ON MANY FRONTS SOME COMPANIES ARE SIMPLY EXPANDING WE ARE ABOUT TO HIRE A NEW ASSOCIATE SAYS BEATRICE MITCHELL AN OWNER OF SPERRY MITCHELL & CO WHICH SELLS PRIVATELY HELD COMPANIES IT KILLS ME TO DO IT BUT I HAVE TO WE ARE ALL WORKING UNTIL 11 PM SHE SAYS BUSINESS AT THE FIVEPERSON NEW YORK FIRM IS BOOMING WE NEED TO MAKE HAY WHILE THE SUN SHINES SIMILARLY CAP GEMINI AMERICA A US CONSULTING UNIT OF CAP GEMINI SOGETI SA OF FRANCE HAS HIRED ABOUT 50 PEOPLE IN THE PAST FIVE WEEKS IN THE YEAREARLIER PERIOD IT HIRED ONLY 15 THE COMPANY PLANS TO HIRE 200 COLLEGE GRADUATES THIS YEAR DOUBLE THE NUMBER LAST YEAR OTHER COMPANIES ARE COMPENSATING FOR THEIR DEEP CUTS DURING THE RECESSION KIMMINS ENVIRONMENTAL SERVICES INC NEARLY HALVED ITS STAFF TO ABOUT 80 PEOPLE WE HAVE REVERSED THAT TREND IN THE LAST 90 DAYS SAYS FRANCIS WILLIAMS CHAIRMAN OF THE TAMPA FLA COMPANY HE PLANS TO HIRE 50 TO 75 PEOPLE THIS YEAR THE REASON THE COMPANY NOW FINDS ITSELF UNDERSTAFFED JUST AS DEMAND FOR ITS WASTEMANAGEMENT AND CONTRACTING SERVICES IS GROWING OUR MARGINS HAVE IMPROVED AND OUR SALES ARE CLIMBING HE SAYS SOME THINGS YOU DID BETTER WITH THOSE EXTRA PEOPLE EVEN COMPANIES STILL CUTTING WORKERS AND THERE ARE PLENTY OF THEM ARE FINDING THAT NEW BUSINESS OPPORTUNITIES REQUIRE SELECTIVE HIRING DIGITAL EQUIPMENT CORP WHICH HAS BEEN IN THE THROES OF BIG CUTBACKS BEGAN ADVERTISING LAST FALL FOR SPECIALISTS TO WORK IN ITS GROWING PERSONALCOMPUTER AND DATASTORAGE BUSINESSES THE NUMBER HIRED WON'T APPROACH THE NUMBER CUT SAYS RUSS JOHNSON DIGITAL'S MANAGER OF WORLDWIDE STAFFING AND PLANNING BUT IT'S STILL A LOT MORE HIRING THAN IN THE RECENT PAST A YEAR AGO HE SAYS WE WERE CONSOLIDATING UNITS AND TRYING TO UNDERSTAND HOW TO DOWNSIZE THIS YEAR WE ARE REALLY LOOKING AT HOW WE GROW CERTAIN PARTS OF OUR BUSINESS FOR MUCH LONGER THAN USUAL IN THIS RECOVERY WORRIED COMPANIES OPTED FOR OVERTIME AND TEMPORARY AND CONTRACT WORKERS RATHER THAN HIRE PERMANENT EMPLOYEES NOW EVEN SOME OF THESE CONCERNS ARE MAKING NEW COMMITMENTS EARLIER THIS MONTH GENERAL MOTORS CORP HELD A ONEDAY JOB FAIR SEEKING TO HIRE ABOUT 2000 ENGINEERS SOME WILL WORK ON NEW PROJECTS BUT OTHERS WILL REPLACE SOME GM CONTRACT EMPLOYEES WE DON'T VIEW THESE PEOPLE COMING ON AS TEMPORARY A GM SPOKESMAN SAYS WE SEE THIS AS LONG TERM AT MANPOWER INC CHAIRMAN MITCHELL FROMSTEIN NOTICED LAST YEAR THAT COMPANIES WERE INCREASINGLY TURNING TEMPORARY WORKERS HIRED EARLY IN THE RECOVERY INTO PERMANENT EMPLOYEES THIS YEAR HE EXPECTS AS MANY AS A THIRD OF HIS FIRM'S TEMPORARY WORKERS TO BE HIRED PERMANENTLY THE SAME PERCENTAGE AS LAST YEAR AND UP FROM 20 IN 1992 FOR JOB HUNTERS ALL THIS TRANSLATES INTO MORE OPPORTUNITY AFTER HIS MARKETING JOB WAS ELIMINATED AT A SMALL COMPANY IN NOVEMBER 1991 CLINSO COPELAND JR OF SILVER SPRING MD TRIED UNSUCCESSFULLY TO GO INTO BUSINESS FOR HIMSELF THE NEW VENTURE DIDN'T PAN OUT SO IN MARCH 1993 HE BEGAN SPENDING MOST OF HIS TIME LOOKING FOR WORK IT TOOK HIM A YEAR BUT LAST WEEK HE FINALLY FOUND IT AS A MANAGER WITH A TRADE GROUP IN WASHINGTON I'VE BEEN THERE FOR JUST TWO DAYS BUT IT SEEMS LIKE I'VE BEEN THERE FOREVER A DELIGHTED MR COPELAND SAYS DAVID OPTON EXECUTIVE DIRECTOR OF EXECUNET A NORWALK CONN NETWORKING GROUP SAYS HE STILL SEES MANY EXECUTIVES LAID OFF IN CORPORATE RESTRUCTURINGS BUT NOW HE ADDS THERE ALSO ARE MORE NEW POSITIONS AVAILABLE FOR JOB SEEKERS LAST WEEK THE REGULAR JOB LIST HIS GROUP PUBLISHES WAS THE LONGEST IT HAS EVER BEEN IT HAD 240 POSTINGS UP FROM 191 A WEEK EARLIER AND ABOUT 150 SIX MONTHS AGO HELPWANTED ADVERTISING IS SURGING AT MANY NEWSPAPERS THE CONFERENCE BOARD'S HELPWANTED ADVERTISING INDEX WHICH TRACKS 51 NEWSPAPERS HAS BEEN CLIMBING FOR SEVERAL MONTHS AND IS EXPECTED TO CONTINUE TO DO SO IT DIPPED IN JANUARY BUT THAT WAS DUE TO THE WEATHER IN ATLANTA OUTPLACEMENT FIRM DRAKE BEAM MORIN HELD EIGHT CHAMPAGNE PARTIES IN FEBRUARY AND FOUR IN MARCH TO CELEBRATE THE SUCCESS OF UNEMPLOYED CLIENTS IN FINDING JOBS DURING THE DARKEST DAYS OF 1991 AND 1992 WE WERE LUCKY TO HAVE ONE A MONTH SAYS LINDA KAMMIRETIFFAN MANAGING DIRECTOR OF THE OFFICE OVERALL DRAKE BEAM SAYS THE TIME IT TAKES AN OUTOFWORK MANAGER TO FIND A NEW JOB DROPPED TO 38 MONTHS LAST YEAR FROM SIX MONTHS THE YEAR BEFORE THAT'S THE BIGGEST TURNAROUND IN OUR HISTORY CHAIRMAN WILLIAM MORIN SAYS AT ANOTHER DRAKE BEAM OFFICE DAVID ECKEL LANDED A NEW JOB EARLIER THIS MONTH AS VICE PRESIDENT OF OPERATIONS FOR AMERICA'S CASH EXPRESS AN IRVING TEXAS CHECKCASHING FIRM HIS SEARCH TOOK ONLY ABOUT FOUR MONTHS LESS THAN HE EXPECTED WHEN I STARTED WORKING WITH DRAKE BEAM THEY KIND OF BRACED ME FOR A SIX SEVEN OR EVEN EIGHTMONTH JOB SEARCH HOWEVER EMPLOYERS AND JOB SEEKERS ALIKE REPORT BRUTAL COMPETITION FOR THE JOBS THAT ARE OFFERED WE SEE 40 AND 50YEAROLD PEOPLE FOR JOBS THAT WE USED TO STAFF WITH 25 AND 30YEAROLD PEOPLE KIMMINS ENVIRONMENTAL'S MR WILLIAMS SAYS I HAVE NEVER EXPERIENCED THIS I HAVE NEVER BEFORE HAD THE PLEASURE OF INTERVIEWING FIVE QUALIFIED PEOPLE FOR A SPOT DIGITAL'S MR JOHNSON SAYS AN ADVERTISEMENT SEEKING TO FILL 12 TO 15 POSITIONS DRAWS AS MANY AS 2000 RESUMES AS A RESULT MANY JOB SEEKERS ARE HAVING TO SETTLE FOR SALARIES BENEFITS AND RESPONSIBILITIES THAT ARE A CUT BELOW THE JOBS THEY LEFT FOR EXAMPLE MS MCINTYRE IS PLEASED TO HAVE JUST LANDED THE MEDIACENTER JOB BUT SAYS IT PAYS 30 LESS THAN HER OLD ONE DID YOU CAN'T BE HARDNOSED ON NEGOTIATIONS ON MONEY SHE SAYS IT'S NOT UNUSUAL TO FIND PEOPLE TAKING UP TO 50 CUTS THERE ARE SO MANY CANDIDATES OUT THERE IF YOU DON'T WANT IT THERE'S SOMEONE ELSE TO TAKE IT MOREOVER MR RICHARDS THE ECONOMIST AT THE NATIONAL ASSOCIATION OF MANUFACTURERS ESTIMATES THAT THE 16 MILLION JOBS LOST IN MANUFACTURING IN THE PAST FOUR YEARS ARE GONE FOR GOOD ABOUT 178 MILLION MANUFACTURING JOBS ARE NOW LEFT NEVERTHELESS KENNETH GOLDSTEIN A CONFERENCE BOARD ECONOMIST SAYS THE IMPROVEMENT IN THE OVERALL JOB MARKET IS STARTING TO BE FELT BY ORDINARY PEOPLE AND THAT IN TURN IS BEING REFLECTED IN RISING CONSUMER CONFIDENCE TUESDAY THE CONFERENCE BOARD SAID ITS CONSUMER CONFIDENCE INDEX SHOT UP TO 867 FROM 799 IN FEBRUARY THE HIGHEST READING SINCE JULY 1990 WITH UNEMPLOYED NEIGHBORS FINALLY FINDING WORK MANY AMERICANS ARE GROWING MORE HOPEFUL ABOUT THE FUTURE 9403310002 940331 WHAT'S NEWS BUSINESS AND FINANCE STOCKS TUMBLED AGAIN DRIVING THE DOW JONES INDUSTRIAL AVERAGE DOWN 7227 OR 2 TO 362675 BOND PRICES FELL WITH THE TREASURY'S BENCHMARK 30YEAR ISSUE DOWN NEARLY 1/2 POINT TO YIELD 710 WHILE MANY OF THE FORCES THAT HAVE PUSHED STOCKS HIGHER OVER THE PAST THREE YEARS REMAIN INTACT INVESTORS HAVE BECOME MORE UNCERTAIN ESPECIALLY BECAUSE OF WORRIES ABOUT INTERESTRATE INCREASES INVESTORS ARE BAILING OUT OF BOND MUTUAL FUNDS AND THE TORRENT OF MONEY GOING INTO STOCK FUNDS IS SLOWING SHARPLY AS THE MARKETS FALL NORTHROP OFFERED TO SWEETEN ITS BID FOR GRUMMAN TO 62 A SHARE IF GRUMMAN ABANDONS TODAY'S SEALEDBID AUCTION AND ADOPTS NEW RULES GRUMMAN SAID IT WON'T CHANGE THE AUCTION FORD IS PREPARING A REORGANIZATION THAT WILL PUT MAJOR FUNCTIONS SUCH AS PRODUCT DEVELOPMENT SALES AND ENGINE/TRANSMISSIONS EACH UNDER AN EXECUTIVE WITH AUTHORITY TO ACT GLOBALLY THE JOB MARKET HAS TURNED A CORNER IN RECENT MONTHS AND JOBS ARE BEING CREATED FASTER THAN MANY THINK ECONOMISTS AND COMPANIES SAID NEW YORK'S HIGHEST COURT GAVE STATECHARTERED BANKS THE RIGHT TO SELL ANNUITIES ONE OF THE INSURANCE INDUSTRY'S FASTESTGROWING PRODUCTS WOOLWORTH BEGAN AN INTERNAL PROBE INTO ALLEGATIONS OF ACCOUNTING IRREGULARITIES INCLUDING PROCEDURES IT SAID WILL CAUSE IT TO RESTATE INTERIM RESULTS FOR AT LEAST ONE OF ITS PAST TWO YEARS SALOMON BROTHERS AND TWO INVESTMENT FUNDS AGREED TO PAY 100 MILLION TO SETTLE CLAIMS FROM ALLEGED MANIPULATION OF SEVERAL TREASURY AUCTIONS UNITED TECHNOLOGIES AGREED TO PAY 150 MILLION TO SETTLE CHARGES OF IMPROPER BILLING ON MILITARY HELICOPTERS BLOCKBUSTER WILL ASK STOCKHOLDERS TO CLEAR A PLAN THAT COULD LET IT ALMOST TRIPLE THE AMOUNT OF STOCK IT CAN ISSUE NOVELL NARROWED THE CHOICE OF CHIEF EXECUTIVE OFFICER FOR THE NETWORKING SOFTWARE MAKER TO THREE PEOPLE FACTORY ORDERS FELL 1 DURING FEBRUARY REFLECTING A STEEP DECLINE IN DEFENSE AND AIRCRAFT SPENDING ELI LILLY IS LAUNCHING AN UNUSUAL AD CAMPAIGN TO DEPLORE THE MEDIA'S ROLE IN EXAGGERATING PROZAC'S POWER AND MAKING LIGHT OF DEPRESSION WARNER BROS CHAIRMAN AND CEO ROBERT DALY WILL SHARE HIS CORPORATE TITLES WITH TERRY SEMEL WHO HAS BEEN PRESIDENT AND CHIEF OPERATING OFFICER WMS INDUSTRIES AND NINTENDO'S US UNIT SAID THEY JOINTLY FORMED A COMPANY TO MARKET GAMES EXCLUSIVELY FOR NINTENDO'S NEW PROJECT REALITY SYSTEM AND TO SPLIT THE PROFITS TRAVELERS CHAIRMAN SANFORD WEILL EXERCISED STOCK OPTIONS VALUED AT 469 MILLION LAST YEAR ACCORDING TO THE COMPANY'S PROXY STATEMENT SEPARATELY WEILL RECEIVED A PAY PACKAGE OF 59 MILLION IN SALARY BONUS AND RESTRICTED STOCK AMID RECORD PROFIT U S WEST WILL BE A PARTNER IN A COMPANY RUSSIA IS FORMING TO BUILD AND MANAGE A NATIONAL PHONE NETWORK THE RUSSIANS ARE HOPING ALSO TO ENLIST WESTERN BANKS AND AID AGENCIES JAPAN'S INDUSTRIAL OUTPUT IN FEBRUARY GREW A WEAK 02 FROM JANUARY WELL BELOW A 26 GROWTHRATE FORECAST THOUGH THE FIGURE FOLLOWS MORE BULLISH INDICATORS THIS WEEK MEANWHILE THE YEN CONTINUED TO SURGE AGAINST THE DOLLAR AMID SIGNS OF INCREASING TENSIONS OVER TRADE METALLGESELLSCHAFT INDICATED IT WILL COUNTERSUE A FORMER EXECUTIVE WHO SEEKS 1 BILLION IN DAMAGES FOR ALLEGED DEFAMATION AND CIVIL CONSPIRACY BONDS LEHMAN BROTHERS TREASURY INDEX 518719 OFF 1665 COMMODITIES OIL 1438 A BARREL UP SIX CENTS DOW JONES FUTURES INDEX 14200 OFF 101 SPOT INDEX 13179 OFF 037 DOLLAR 10285 YEN OFF 028 16750 MARKS UP 00015 9403310001 940331 LOWWAGE EARNERS BECOME BIGGER PART OF WORK FORCE WASHINGTON THE PERCENTAGE OF FULLTIME WORKERS WHO EARN LOW WAGES INCREASED SIGNIFICANTLY BETWEEN 1979 AND 1992 WITH YOUNGER AND LESSEDUCATED AMERICANS HIT THE HARDEST A CENSUS BUREAU STUDY FOUND THAT ABOUT 18 OF THE NATION'S 81 MILLION YEARROUND FULLTIME WORKERS EARNED LESS THAN 13091 A YEAR IN 1992 A 50 INCREASE OVER THE 12 WHO HAD LOW EARNINGS IN 1979 FOR YOUNG WORKERS BETWEEN THE AGES OF 18 TO 24 AND 25 TO 34 THE PERCENTAGES WHO WERE LOWWAGE EARNERS DOUBLED IN THE PERIOD TO 47 AND 18 RESPECTIVELY THE CENSUS BUREAU'S LOWEARNINGS THRESHOLD IS A MODIFIED VERSION OF THE POVERTY LEVEL FOR A FOURPERSON FAMILY WITH TWO CHILDREN WHICH IS 14228 A YEAR THE STUDY ALSO FOUND THAT LOW EARNERS TEND TO BE FEMALE AND LESS EDUCATED HOWEVER THE STUDY FOUND THAT THE LIKELIHOOD OF HAVING LOW EARNINGS HAS RISEN FASTER AMONG MEN THAN WOMEN THE PROPORTION OF WOMEN WITH LOW EARNINGS INCREASED 16 OVER THE PERIOD WHILE THE PROPORTION OF MEN WITH LOW EARNINGS JUMPED 83 THAT THE PERCENTAGE OF LOWINCOME FULLTIME WORKERS HAS RISEN SO SHARPLY IS A CONCERN THE CENSUS BUREAU SAYS THE MERE PROSPECT OF LOW WAGES MAY ENCOURAGE ADULTS TO STAY OUT OF THE LABOR FORCE ALTOGETHER 9403310076 940228 INTERNATIONAL WASHINGTON INSIGHT CLINTON MISSES OPPORTUNITY IN OIL GLUT TO PUNISH LIBYA FOR PAN AM BOMBING BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BEST OPPORTUNITY FOR THE CLINTON ADMINISTRATION TO PUNISH LIBYAN TERRORISM IS BEING MISSED LIBYAN RULER MOAMMAR GADHAFI CONTINUES TO DEFY THE INTERNATIONAL COMMUNITY BY REFUSING TO COUGH UP TWO OPERATIVES WHO HAVE BEEN INDICTED FOR THEIR ROLE IN THE 1988 BOMBING OF PAN AM 103 THAT TERRORIST ACT KILLED 270 PEOPLE INCLUDING 189 AMERICANS BUT DESPITE PRESIDENT CLINTON'S TOUGH CAMPAIGN TALK ABOUT BRINGING THE FUGITIVES TO JUSTICE THE BEST THE US AND ITS ALLIES HAVE BEEN ABLE TO ACCOMPLISH ARE UNITED NATIONS SANCTIONS THAT MISS THE MAIN TARGET LIBYA'S OIL REVENUES NOW WOULD BE THE IDEAL TIME TO CUT LIBYA'S OIL LIFELINE THE WORLD IS AWASH IN OIL HENRY SCHULER AN OILINDUSTRY EXPERT AND CRITIC OF COL GADHAFI NOTES THAT CURRENT NORTH SEA PRODUCTION OF HIGHGRADE LIGHT SWEET OIL SIMILAR TO THAT WHICH THE EUROPEANS BUY FROM LIBYA IS AT RECORD LEVELS INDEED THE INCREASE IN NORTH SEA PRODUCTION ALONE THIS YEAR IS EXPECTED TO EQUAL LIBYA'S TOTAL PRODUCTION OF 14 MILLION BARRELS A DAY MR SCHULER SAYS US WILL APPEARS TO BE LACKING THOUGH DESPITE THE FAVORABLE WORLD OIL SUPPLY THE ADMINISTRATION CONTINUES TO ACCEPT ITS ALLIES' ASSERTIONS THAT THEY DEPEND HEAVILY ON LIBYAN OIL AND THEREFORE CAN'T GO ALONG WITH AMERICAN REQUESTS FOR A UNIMPOSED OIL EMBARGO IN THE NEXT FEW YEARS IT WILL ONLY BECOME MORE DIFFICULT TO PERSUADE THE EUROPEANS TO CUT THEIR BUSINESS TIES WITH LIBYA AND PUNISH COL GADHAFI THE FRENCH OIL COMPANY TOTAL SA REACHED AN AGREEMENT IN 1993 TO CONDUCT A FEASIBILITY STUDY ON DEVELOPING LIBYA'S MABRUK OIL FIELD AND COULD SOON BEGIN INVESTING AS MUCH AS 1 BILLION IN THE PROJECT AN ITALIAN OIL COMPANY IS DISCUSSING MAJOR DEVELOPMENT OF NATURALGAS DEPOSITS IN LIBYA AND COL GADHAFI HAS PLANS TO EXPAND LIBYA'S OWNERSHIP OF REFINERIES IN EUROPE PRESIDENT CLINTON SUGGESTED A WAY TO SPUR THE EUROPEANS TOWARD ACTION ON DEC 21 HE JOINED FAMILY MEMBERS OF VICTIMS OF PAN AM 103 AT A CEREMONY IN ARLINGTON NATIONAL CEMETERY TO DEDICATE A MEMORIAL TO THOSE KILLED MR CLINTON TOLD THE FAMILY MEMBERS THAT THE 1988 ATTACK ON PAN AM 103 WAS AN ATTACK ON AMERICA AN ASSERTION THAT NEITHER PRESIDENT REAGAN NOR PRESIDENT BUSH EVER MADE SUCH AN ATTACK WOULD SEEM TO DEMAND A RESPONSE SIMILAR TO MR CLINTON'S DECISION TO UNLEASH A RAID ON IRAQ IN RETALIATION FOR SADDAM HUSSEIN'S ALLEGED ATTEMPT TO ASSASSINATE FORMER PRESIDENT BUSH IN KUWAIT MR SCHULER AND OTHER CRITICS SUGGEST THAT IT IS TIME TO DEAL WITH THE LIBYA ISSUE OUTSIDE OF THE UN WHERE IT BOGS DOWN IN DEBATE THEY ADVOCATE TELLING THE EUROPEAN ALLIES THAT THE US WILL ACT MILITARILY UNLESS THE EUROPEANS JOIN AN INTERNATIONAL OIL EMBARGO INSTEAD THE ADMINISTRATION HAS SENT LIBYA AND OTHER WOULDBE TERRORIST STATES A BAD SIGNAL BY PROPOSING TO FOLD THE STATE DEPARTMENT'S COUNTERTERRORIST OPERATION INTO A LARGER BUREAUCRATIC UNIT THAT WOULD ALSO HANDLE SUCH OTHER MATTERS AS NARCOTICS AND INTERNATIONAL CRIME SINCE 1986 THE HEAD OF COUNTERTERRORISM HAS HELD THE RANK OF AMBASSADOR AND REPORTED DIRECTLY TO THE SECRETARY OF STATE THE ADMINISTRATION'S IDEA WHICH CONGRESS IS EXPECTED TO ALTER WOULD DOWNGRADE THE COUNTERTERRORISM JOB AND AMALGAMATE IT WITH TWO OTHER ISSUES WHICH MEANS IT WON'T GET AS MUCH ATTENTION SAYS PAUL BREMER WHO HELD THE COUNTERTERRORISM POST FROM 1986 TO 1989 IN THE ABSENCE OF MORE DECISIVE WESTERN ACTION COL GADHAFI SHOWS SIGNS OF REVERTING TO HIS OLD WAYS IN DECEMBER A LEADING LIBYAN DISSIDENT AND US RESIDENT MANSOUR EL KIKHIA WAS KIDNAPPED FROM A HOTEL ROOM IN CAIRO SOME US NATIONAL SECURITY OFFICIALS WORRY THAT HIS DISAPPEARANCE COULD SIGNAL A RETURN OF COL GADHAFI'S 1970S CAMPAIGN TO WIPE OUT OPPONENTS STILL THE US CONTINUES TO SHY AWAY FROM AGGRESSIVE ACTION FOLLOWING THE CEREMONY IN ARLINGTON SUSAN AND DANIEL COHEN WHOSE DAUGHTER THEODORA WAS KILLED ON PAN AM 103 WROTE A SCATHING LETTER TO THE WHITE HOUSE THEY SAID AFTER FIVE YEARS WE WILL HAVE A TOMBSTONE FOR THE KIDS A PLACE TO COME AND CRY EVERY YEAR IS THAT THE BEST THE MOST POWERFUL NATION ON EARTH CAN DO SEE RELATED LETTER LETTERS TO THE EDITOR WE INTEND TO PUNISH LIBYAN TERRORISM WSJ MARCH 31 1994 9402280162 YY94 MM03 9403300176 940330 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REP ORTED 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 LE SS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILING BASE PERIOD IS LESS THAN 3 YEARS OOFFICER ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES UNEXERCISED OPTIONS COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 9403300175 940330 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB DREAMS ARE STILL FREE AND REPUBLICANS HAVE A LOT OF THEM RIGHT NOW SPECIFICALLY GOP HEADS ARE FILLED WITH VISIONS OF 1994 ELECTORAL SUCCESS IT NOW SEEMS LIKELY THAT THE REPUBLICANS WILL PICK UP MORE HOUSE SEATS IN THIS YEAR'S ELECTIONS THAN THE COGNOSCENTI EXPECTED JUST A FEW WEEKS AGO HOUSE DEMOCRATS ARE NOTICEABLY JITTERY AND FEAR THEY COULD LOSE 20 OR MORE SEATS BUT THAT'S NOT ALL REPUBLICANS NOW ARE ALLOWED TO DREAM THE ULTIMATE 1994 DREAM CAPTURING THE SENATE DON'T BET YOUR WINNINGS IN THE OFFICE BASKETBALL POOL ON THIS IT'S STILL THE LONGEST OF LONG SHOTS BUT THREE MONTHS AGO IT WAS SO IMPLAUSIBLE THAT REPUBLICANS WEREN'T EVEN ALLOWED TO DREAM ABOUT IT NOW THANKS TO VARIOUS DEMOCRATIC SETBACKS TOPPED OFF BY A HEALTHY DOSE OF WHITEWATER SCANDAL IT'S POSSIBLE AT LEAST TO SEE A SCENARIO IN WHICH REPUBLICANS PICK UP THE SIX ADDITIONAL SEATS THEY NEED TO EVEN UP CONTROL OF THE SENATE OR THE SEVEN NEEDED FOR A MAJORITY IT WILL BE EXTREMELY HARD TO ACHIEVE AND THE ODDS ARE AGAINST IT SAYS REPUBLICAN POLLSTER FRANK LUNTZ BUT IT NOW IS IN THE REALM OF POSSIBILITY HERE'S WHY AT THE BEGINNING OF THE YEAR IT LOOKED AS IF THE NEW REPUBLICAN SENATOR FROM TEXAS KAY BAILEY HUTCHISON FACED A LONG AND MESSY TRIAL ON CHARGES OF MISUSING HER STATE TREASURER'S OFFICE FOR POLITICAL PURPOSES BUT THE CASE AGAINST SEN HUTCHISON COLLAPSED AND SHE SEEMS A SAFE BET TO KEEP HER SEAT MEANWHILE DEMOCRATIC SEN CHUCK ROBB OF VIRGINIA HAS STUMBLED INTO EVEN MORE EMBARRASSING DISCUSSIONS OF HIS PRIVATE LIFE DEMOCRATIC SEN DAVID BOREN IS PONDERING LEAVING THE SENATE TO HEAD THE UNIVERSITY OF OKLAHOMA WHICH WOULD OPEN UP A DEMOCRATIC SEAT THAT ISN'T EVEN SUPPOSED TO BE CONTESTED WORST OF ALL FOR DEMOCRATS SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE ANNOUNCED HIS RETIREMENT EXPOSING THE SAFEST OF DEMOCRATIC SEATS HANGING OVER IT ALL IS THE WHITEWATER CONTROVERSY DEMOCRATS MAY THINK PRESIDENT CLINTON'S TROUBLES IN EXPLAINING FIRST FAMILY FINANCIAL DEALINGS WON'T AFFECT THEM AND THERE ARE NEW POLLS SUGGESTING JUST THAT BUT THESE ARE DECEIVING THE ELECTIONSEASON EFFECT OF WHITEWATER ISN'T GOING TO BE DETERMINED BY THIS WEEK'S NEWSPAPER STORIES OR LAST WEEK'S PRESIDENTIAL NEWS CONFERENCE IT'S GOING TO BE DETERMINED BY TELEVISED SUMMERTIME CONGRESSIONAL HEARINGS AND AS FORMER REPUBLICAN CONGRESSMAN VIN WEBER POINTS OUT WHAT COUNTS ABOVE ALL IN MIDTERM ELECTIONS IS VOTER TURNOUT WHITEWATER DISCLOSURES COULD LEAVE DEMOCRATS EMBARRASSED AND DISHEARTENED REPUBLICANS MOTIVATED AND UPBEAT WHICH GROUP IS MORE LIKELY TO TURN OUT MR WEBER DRAWS A PARALLEL TO THE REPUBLICAN WIPEOUT IN THE WATERGATE ELECTION OF 1974 THE POPULAR PERCEPTION OF WHAT HAPPENED TO US IN '74 WHICH IS THAT A LOT OF REPUBLICANS TURNED ON THE PARTY AND VOTED FOR DEMOCRATS IS WRONG HE SAYS REPUBLICANS DIDN'T VOTE THEY WERE EMBARRASSED AND THEY STAYED HOME SO HERE'S A SCENARIO FOR REPUBLICAN DAYDREAMERS ASSUME THE ECONOMY STAYS IN DECENT BUT NOT ROBUST SHAPE FURTHER ASSUME THAT THE HEALTHCARE DEBATE PRODUCES A MODEST PACKAGE OF MARKETORIENTED REFORMS ALLOWING REPUBLICANS TO CLAIM THEY'VE SAVED THE NATION FROM AN UNWORKABLE ORIGINAL CLINTON PLAN AND FINALLY ASSUME THAT WHITEWATER DRAGS ON GENERATING POLITICAL CONTRIBUTIONS FROM WELLHEELED REPUBLICANS WHO SMELL BLOOD ALL THOSE FACTORS COME TOGETHER TO HELP REPUBLICANS PICK OFF MOST OF THE SENATE RACES NOW RATED AS TOSSUPS IN ARIZONA REP JON KYL WINS DENNIS DECONCINI'S OLD SEAT BECAUSE THE DEMOCRATS HAVE TORN UP EACH OTHER IN THE PRIMARY IN MICHIGAN RONNA ROMNEY DAUGHTER OF A FORMER GOVERNOR EMERGES AS A GOP FEMALE STAR AND WINS THE SEAT OF RETIRING SEN DON RIEGLE IN OHIO LT GOV MICHAEL DEWINE JUST WINS OVER SUPERLAWYER JOEL HYATT IN MINNESOTA DEMOCRATS RUN A CAST OF NOBODIES AND GOP REP ROD GRAMS TAKES ADVANTAGE TO WIN DAVID DURENBERGER'S OLD SEAT IN MAINE THE NATION'S CRANKIEST ELECTORATE PICKS REPUBLICAN REP OLYMPIA SNOWE TO REPLACE SEN MITCHELL AND IN VIRGINIA REPUBLICANS NOMINATE THE MORE ELECTABLE FORMER BUDGET DIRECTOR JIM MILLER RATHER THAN OLIVER NORTH THEN WIN BECAUSE NONSTOP DEMOCRATIC SNIPING AT SEN ROBB PROVES FATAL TO HIM AT THAT POINT REPUBLICANS STILL NEED ONE MORE UPSET TO GET TO SEVEN IT COMES WHEN LOTS OF NATIONAL MONEY POURS INTO NEW JERSEY TO HELP STATE ASSEMBLY SPEAKER CHUCK HAYTAIAN DEFEAT SEN FRANK LAUTENBERG TO COMPLETE THIS FANTASY IF REPUBLICANS DON'T GET THAT SEAT THEY GET ANOTHER SHOT IN JANUARY WHEN OKLAHOMA'S SEN BOREN RETIRES OPENING THE WAY FOR REP JAMES INHOFE TO ENTER A SPECIAL ELECTION FOR HIS SEAT FARFETCHED YOU BET A BETTER BET IS THAT REPUBLICANS GAIN THREE SEATS BUT AS MARCH ENDS REPUBLICANS GAZE AT 1994 AND SEE A FIELD OF DREAMS RONNA ROMNEY A SENATE CANDIDATE IN MICHIGAN IS THE FORMER DAUGHTERINLAW OF EXGOV GEORGE ROMNEY WEDNESDAY'S CAPITAL JOURNAL COLUMN INCORRECTLY REFERRED TO HER AS HIS DAUGHTER 9403300174 940330 WHO'S NEWS AMERICAN MEDICAL ELECTRONICS CHIEF REFUSES TO RESIGN BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS SHARES OF AMERICAN MEDICAL ELECTRONICS INC PLUNGED 22 AFTER ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER REFUSED THE BOARD'S REQUEST THAT HE RESIGN AND INSTEAD ASKED THE COMPANY'S FOUR OUTSIDE DIRECTORS TO QUIT NEITHER SIDE PROVIDED DETAILS OF THE RIFT AT THE MAKER OF MEDICAL DEVICES OR INDICATED ANY WILLINGNESS TO COMPROMISE IN AN INTERVIEW CHAIRMAN ARTHUR W SCHWALM SAID THE BOARD WILL CONTINUE TO SEEK THE RESIGNATION OF JOSEPH MOOIBROEK PRESIDENT AND CEO WHO HAS LED THE COMPANY SINCE 1982 AND IS ITS ONLY INSIDE DIRECTOR WE JUST FEEL THAT THERE IS A NECESSITY FOR A CHANGE OF LEADERSHIP MR SCHWALM SAID ADDING HOWEVER THAT THERE IS NO DISSATISFACTION WITH THE COMPANY'S RECENT RESULTS AND THAT MR MOOIBROEK HAS NOT BEEN ACCUSED OF ANY WRONGDOING MR MOOIBROEK SAID HE HAS NO INTENTION OF RESIGNING FOR THE LAST FIVE YEARS THIS COMPANY HAS PUT TOGETHER ALMOST 35 COMPOUNDED REVENUE GROWTH HE SAID PEOPLE MAY QUESTION MY LEADERSHIP BUT THEY CERTAINLY CAN'T QUESTION MY RESULTS NOR CAN THE BOARD INEXPENSIVELY FIRE MR MOOIBROEK WHO EARNS 210000 A YEAR ACCORDING TO HIS EMPLOYMENT CONTRACT TERMINATION WITHOUT CAUSE WOULD ENTITLE HIM TO SEVERANCE EQUAL TO TWICE HIS EARNINGS OVER THE PAST TWO YEARS INDUSTRY ANALYSTS WERE AT A LOSS TO EXPLAIN THE SUDDEN TURMOIL AT THE COMPANY WHICH MAKES ELECTRONIC STIMULATION DEVICES USED TO TREAT BROKEN BONES YOU WOULD EXPECT TO SEE THIS KIND OF THING FROM A COMPANY THAT IS STRUGGLING SAID CHARLES OLSZIEWSKI AN ANALYST WITH PRUDENTIAL SECURITIES RESEARCH BUT THIS SEEMS TO BE THE OPPOSITE SITUATION IN 1993 AMERICAN MEDICAL'S NET INCOME ROSE 39 TO 53 MILLION OR 74 CENTS A SHARE FROM 38 MILLION OR 49 CENTS A SHARE IN 1992 REVENUE ROSE 20 TO 393 MILLION FROM 327 MILLION IN TRADING ON THE NASDAQ STOCK MARKET YESTERDAY AMERICAN MEDICAL SHARES CLOSED AT 13 A SHARE DOWN 375 9403300173 940330 HEARD ON THE STREET IVAX SHARES SLIDE AS RIVALS PREPARE TO ENTER ITS PREVIOUSLY EXCLUSIVE MARKET FOR VERAPAMIL BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL MOST BUSINESSES ONLY DREAM ABOUT BEING IN A MARKET WITH NO COMPETITORS BUT FOR THE BIGGEST PRODUCT LINE OF THE GENERICDRUG MAKER IVAX THE DREAM CAME TRUE FOR MORE THAN A YEAR NOW COMES THE RUDE AWAKENING THE SHARES HAVE DIVED IN RECENT DAYS SINKING FROM A RECENT PEAK ABOVE 38 TO YESTERDAY'S CLOSE OF 25 3/4 OFF 59 OR 1 5/8 ON THE AMERICAN STOCK EXCHANGE WHAT'S CLOBBERING THE STOCK IS THE SAME THING THAT USED TO SUPPORT IT NAMELY THE PROSPECT OF PRICE WARS FOR YEARS GENERICDRUG COMPANIES THRIVED ON THEIR FIERCE UNDERCUTTING OF BRANDNAME DRUG PRICES AND NOW THE STRATEGY IS COMING BACK TO BITE THEM OTHER GENERIC COMPETITORS ARE POISED TO INVADE IVAX'S PREVIOUSLY EXCLUSIVE DOMAIN OF MAKING VERAPAMIL THE GENERIC VERSION OF THE DRUG BRANDNAMED CALAN SR WHICH IS USED TO TREAT HYPERTENSION AND ANGINA FIRST TO ENTER IVAX'S TURF IS ZENITH LABS A WELLTHOUGHTOF GENERIC COMPANY THAT THIS MONTH AGREED TO START DISTRIBUTING GENERIC VERAPAMIL FOR MONSANTO'S GD SEARLE UNIT THE US SUPPLIER OF THE BRANDNAME PRODUCT IN THE SHORT RUN ANALYSTS DON'T EXPECT ZENITH TO BE A FIERCE COMPETITOR PRICING ITS VERAPAMIL AT ABOUT THE SAME DISCOUNT TO THE BRAND NAME AS IVAX DOES BUT OTHER MORE FORMIDABLE COMPETITORS ARE IN THE WINGS ANALYSTS SAY AND BEARISH INVESTORS SAY A PRICE WAR IS BOUND TO DEVELOP OF COURSE OTHER GENERICDRUG MAKERS FACE SIMILAR PRESSURES AS PRICE WARS HAVE BROKEN OUT THROUGHOUT THE INDUSTRY BUT IVAX IS UNUSUALLY DEPENDENT ON THE ONE PRODUCT VERAPAMIL ACCOUNTED FOR 50 TO 60 OF EARNINGS IN THE FOURTH QUARTER ACCORDING TO JERRY TREPPEL AN ANALYST WITH KIDDER PEAPODY PRICE COMPETITION HERE WILL HURT ITS PROFITABILITY AND LONGTERM GROWTH PROSPECTS SKEPTICAL ANALYSTS SAY IVAX'S VERAPAMIL SALES THIS YEAR COULD FALL 30 MILLION OR 40 MILLION BELOW EXPECTATIONS TO BETWEEN 160 MILLION AND 170 MILLION SAYS DAVID SAKS AN ANALYST WITH GRUNTAL & CO LAST YEAR HE SAYS SALES OF VERAPAMIL TOTALED 146 MILLION MR SAKS HAS LOWERED HIS ESTIMATE OF 1995 PERSHARE EARNINGS TO 185 FROM 2 FOR THE CURRENT YEAR HE IS LOOKING FOR 140 TO 145 DOWN FROM HIS EARLIER ESTIMATE OF 155 ONE COMPETITOR CAN OBVIOUSLY DO A LOT OF DAMAGE WHEN IT COMES TO THE PRICESENSITIVE GENERIC DRUG MARKET TWO OR THREE COMPETITORS CAN WREAK HAVOC SIDMAK A CLOSELY HELD NEW JERSEY GENERICDRUG MAKER IS EXPECTED TO RECEIVE APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MAKE VERAPAMIL WITHIN THE NEXT SIX MONTHS OR SO SAYS KIDDER'S MR TREPPEL MR TREPPEL LOWERED HIS RATING ON A NUMBER OF GENERIC COMPANIES LAST WEEK AMIDST BIG PRICE CUTS BY MAKERS OF BRANDNAME DRUGS THE KIDDER ANALYST STILL LIKES THE NASDAQ STOCK MARKET'S WATSON PHARMACEUTICALS AND ZENITH LABS HE DIDN'T DOWNGRADE IVAX AND STILL RATES IT OUTPERFORM THOUGH IT ISN'T A STRONG BUY BECAUSE OF ITS DEPENDENCE ON VERAPAMIL HE SAYS IVAX SAYS IT'S WORKING HARD TO DIVERSIFY VERAPAMIL DOES ACCOUNT FOR A SIGNIFICANT PART OF EARNINGS BUT THERE'S A LITTLE TOO MUCH FOCUS ON THIS PRODUCT AND NOT ENOUGH ON OUR RESEARCH AND DEVELOPMENT PIPELINE SAYS ANDREW ZINZI ACTING CHIEF FINANCIAL OFFICER OTHER INVESTORS PREDICT THAT LEDERLE A UNIT OF AMERICAN CYANAMID WILL RECEIVE APPROVAL WITHIN THE NEXT THREE MONTHS ON ITS APPLICATION TO THE FDA TO MAKE VERAPAMIL MANY ANALYSTS SAY THEY HAVEN'T YET TAKEN SUCH POSSIBILITIES INTO ACCOUNT WHEN CONSIDERING THEIR RECOMMENDATIONS ON IVAX STOCK WE KNOW MORE COMPETITION IS COMING IT'S JUST A QUESTION OF WHEN SAYS MR TREPPEL SUCH CALCULATIONS HAVEN'T ESCAPED SOME BIG INVESTORS HOWEVER SOME OF THEM ARE BETTING AGAINST THE STOCK IN SOCALLED SHORT SALES OTHER FACTORS ARE HELPING TO PUSH THE STOCK DOWN SAYS MR TREPPEL INCLUDING THE POSSIBLE SALE OF IVAX STOCK BY MCGAW INC SHAREHOLDERS WHO RECEIVED 14 MILLION SHARES OF IVAX AS PART OF IVAX'S RECENT ACQUISITION OF MCGAW A MEDICAL SUPPLY COMPANY IT DOESN'T HELP EITHER WHEN A RATING AGENCY DECIDES YOUR DEBT IS JUNK STANDARD & POOR'S RECENTLY RATED IVAX'S SENIOR DEBT DOUBLEBPLUS PREVIOUSLY IVAX'S SENIOR DEBT WAS UNRATED NO ONE IS WRITING OFF IVAX COMPLETELY FAR FROM IT EVEN MR SAKS WHO LOWERED HIS ESTIMATES SAYS THE COMPANY HAS A SUBSTANTIALLY BRIGHT FUTURE MCGAW'S BUSINESS WILL BE A PLUS TO IVAX HE SAYS AND IVAX IS ONE OF A HANDFUL OF COMPANIES TO MAKE ALBUTEROL A GENERIC ASTHMA DRUG DEVELOPING A MOREDIVERSIFIED PRODUCT LINE WILL TAKE AWHILE IN THE MEANTIME THE SHARES OF THIS HEARTDRUG MAKER AREN'T FOR THE FAINTHEARTED YEAR ENDED DEC 31 1993 FOURTH QUARTER DEC 31 1993 9403300172 940330 WHO'S NEWS CHIEF OF FIRST FINANCIAL MANAGEMENT RECEIVES A LARGE STOCK AWARD ATLANTA FIRST FINANCIAL MANAGEMENT CORP AWARDED ITS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER PATRICK H THOMAS RESTRICTED STOCK WITH A CURRENT INDICATED VALUE OF MORE THAN 268 MILLION FOR AGREEING TO STAY WITH THE INFORMATIONSERVICES CONCERN THROUGH 1999 THE AWARD OF 500000 RESTRICTED SHARES TO MR THOMAS ALSO IS SUBJECT TO FIRST FINANCIAL MEETING A PERFORMANCE GOAL ESTABLISHED FOR 1994 ACCORDING TO THE COMPANY'S ANNUAL PROXY STATEMENT A SPOKESMAN SAID THE BOARD'S COMPENSATION COMMITTEE HASN'T DISCLOSED THE SPECIFIC PERFORMANCE GOAL IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE FIRST FINANCIAL CLOSED AT 5350 DOWN 25 CENTS BY COMPARISON MR THOMAS IN 1989 WAS AWARDED 236250 RESTRICTED SHARES WHICH VESTED ON DEC 31 1993 THE COMPANY'S STOCK CLOSED AT 5675 THAT DAY GIVING THAT STOCK AWARD A VALUE OF ABOUT 134 MILLION THE FIRST FINANCIAL SPOKESMAN WHILE DECLINING TO COMMENT DIRECTLY ON MR THOMAS'S COMPENSATION SAID FIRST FINANCIAL HAS GENERATED SUPERIOR OPERATING RESULTS ON A CONSISTENT BASIS IN 1993 THE COMPANY REPORTED THAT EARNINGS ROSE TO 1276 MILLION OR 210 A SHARE FROM 489 MILLION OR 83 CENTS A SHARE A YEAR EARLIER THE 1992 RESULTS INCLUDE A LOSS OF APPROXIMATELY 647 MILLION RELATED TO A WRITEDOWN REVENUE IN 1993 ROSE TO 167 BILLION FROM 143 BILLION AS PART OF HIS AGREEMENT TO REMAIN WITH THE COMPANY THROUGH 1999 MR THOMAS ALSO WAS GRANTED AN OPTION TO PURCHASE ANOTHER 500000 SHARES AT AN EXERCISE PRICE OF 5725 A SHARE THOSE OPTIONS BECOME EXERCISABLE AT THE RATE OF 100000 SHARES AT THE END OF EACH YEAR STARTING IN 1995 THE PROXY ALSO SHOWS THAT MR THOMAS RECEIVED A 1993 BONUS OF 54 MILLION AND A SALARY OF 875000 THAT COMPARED WITH A SALARY OF 825000 AND A BONUS OF 39 MILLION IN 1992 9403300171 940330 TEXAS JOURNAL ECONOMIC FOCUS TEXAS TOWNS LEAD PACK IN THE JOBGROWTH RACE BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL THE ENVELOPE PLEASE ALL OF THE GOVERNMENT FIGURES HAVE FINALLY BEEN TABULATED AND CROSSCHECKED AND SO IT IS WITH GREAT PRIDE THAT WE CAN ANNOUNCE THAT THE METROPOLITAN AREA WITH THE HIGHEST JOB GROWTH RATE IN THE NATION LAST YEAR WAS MCALLEN THAT'S RIGHT ONCE CONSIDERED A RIO GRANDE VALLEY BACKWATER THE MCALLENEDINBURGMISSION AREA SURPASSED EVERY OTHER POPULATION CENTER IN THE COUNTRY LAST YEAR IN JOB CREATION IN PERCENTAGE TERMS WITH 67 GROWTH THAT'S TWICE AS FAST AS IN 1992 AND MORE THAN FOUR TIMES THE OVERALL US JOB GROWTH RATE LAST YEAR BUT THE REST OF TEXAS ALSO HAS PLENTY OF CAUSE FOR CELEBRATION TEXAS LOCALES CAPTURED FOUR OF THE TOP 10 SPOTS NATIONWIDE AND EIGHT OF THE TOP 35 ACCORDING TO AN ANALYSIS BY ARIZONA STATE UNIVERSITY'S ECONOMIC OUTLOOK CENTER THE TEXAS WINNERS WHICH CAME FROM SEVERAL AREAS AROUND THE STATE REFLECT THE BREADTH OF THE ECONOMIC STRENGTH HERE THREE HIGH FINISHERS MCALLEN NO 1 THE BROWNSVILLE AREA NO 6 AND LAREDO NO 14 HAVE ENJOYED A SURGE OF BUSINESS ACTIVITY BECAUSE OF THEIR PROXIMITY TO MEXICO AUSTIN RANKED NO 2 HAS EMERGED AS A MAJOR HIGHTECH CENTER AND EVEN HARDHIT NORTHWEST TEXAS PRODUCED A WINNER WICHITA FALLS WHOSE 30THPLACE FINISH WAS DUE IN PART TO THE GROWTH OF SHEPPARD AIR FORCE BASE SIGNIFICANTLY THE BIGGEST CITIES IN THE STATE DIDN'T MAKE THE CUT EVEN THOUGH SAN ANTONIO DALLAS AND FORT WORTHARLINGTON ALL REGISTERED GROWTH IN EXCESS OF A HEALTHY 25 AND EVEN THOUGH TEXAS AS A WHOLE GENERATED MORE JOBS IN 1993 THAN ANY OTHER STATE IT COULDN'T CRACK THE TOP10 LIST OF HIGHEST EMPLOYMENT GROWTH RATES COMING IN AT NO 14 WITH 29 GROWTH HERE'S A QUICK LOOK AT THREE METRO AREAS THAT DID WELL HERE ALTHOUGH MANY ANALYSTS BELIEVE THE NORTH AMERICAN FREE TRADE AGREEMENT WILL EVENTUALLY HARM THE BORDER ECONOMIES BY MOVING TRADE AND MANUFACTURING OPERATIONS TOWARD THE INTERIOR OF BOTH THE US AND MEXICO THERE'S LITTLE SIGN THAT BUSINESSES HERE ARE WORRIED LAST YEAR JUST ABOUT EVERY CATEGORY OF JOBS SURGED INCLUDING SERVICES CONSTRUCTION TRANSPORTATION AND MANUFACTURING AS COMPANIES JOCKEYED TO TAKE ADVANTAGE OF GROWING TIES WITH MEXICO IT JUST WENT BOOM REALLY SAYS MIKE ALLEN PRESIDENT OF THE MCALLEN ECONOMIC DEVELOPMENT CORP IN THE PAST 18 MONTHS DEVELOPERS HAVE ADDED A MILLION SQUARE FEET OF RETAIL SPACE INCLUDING LAS TIENDAS SHOPPING CENTER WHOSE ELECTRONICS STORES AND TRENDY SPECIALTY OUTLETS MAKE IT A FAVORITE OF MEXICAN VISITORS SIMILARLY THERE'S NO SIGN OF WEAKNESS IN TWINPLANT OPERATIONS WHICH EMPLOY LOWWAGE MEXICAN WORKERS SOUTH OF THE BORDER TO PROCESS MATERIALS BROUGHT IN FROM THE US FOR REEXPORT AND INCREASINGLY THOSE OPERATIONS ARE LEADING TO NEW JOBS NORTH OF THE BORDER FOR INSTANCE CONVERSE INC NORTH READING MASS JUST SET UP A NEW MISSION PLANT TO ATTACH THE RUBBER SOLES OF TENNIS SHOES TO CANVAS TOPS THAT ARE SEWN IN A MEXICAN PLANT TOTAL NEW JOBS 150 MANUFACTURING WAS THE LINCHPIN OF AUSTIN'S 63 EMPLOYMENT GROWTH LAST YEAR INDEED ONE OUT OF EVERY FOUR NEW MANUFACTURING JOBS IN THE STATE LAST YEAR WAS CREATED HERE IN THE PAST DECADE AUSTIN'S 24500 TOTAL NEW MANUFACTURING POSITIONS ACTUALLY BESTED MANUFACTURING JOB GROWTH IN ALL OF TEXAS BECAUSE EACH MANUFACTURING JOB TYPICALLY SUPPORTS THREE ADDITIONAL JOBS IN THE AREA THE GROWTH HAS RADIATED RAPIDLY THROUGH THE AUSTIN ECONOMY AMONG OTHER THINGS CONSTRUCTION JOBS SHOT UP 19 LAST YEAR AND TRADE JOBS ROSE 66 MUCH OF THE HIGHESTPROFILE GROWTH CAME FROM AUSTIN'S 725 HIGHTECH COMPANIES WHICH EMPLOY ABOUT 80000 PEOPLE ACCORDING TO THE GREATER AUSTIN CHAMBER OF COMMERCE ANNUAL GROWTH IN THE SECTOR HAS AVERAGED ABOUT 8 OVER THE PAST DECADE THE BIGGEST SOURCE OF NEW JOBS HERE DOESN'T EVEN SHOW UP ON EMPLOYMENT DATA HANDLED BY THE TEXAS EMPLOYMENT COMMISSION THAT'S BECAUSE THEY'RE MILITARY JOBS SOLDIERS WHO HAVE BEEN TRANSFERRED TO THE FORT HOOD ARMY POST NEAR HERE AS PART OF BASE CONSOLIDATIONS AROUND THE WORLD STILL WHEN FORT HOOD GREW TO MORE THAN 44000 SOLDIERS FROM 33000 IN LITTLE OVER A YEAR NEARBY COMMUNITIES BOOMED THE KILLEENTEMPLE AREA GAINED 4700 NEW CIVILIAN JOBS LAST YEAR A 6 JUMP MUCH OF THE INCREASE CAME FROM HOUSING CONSTRUCTION THOUGH NATIONAL RETAILERS AND RESTAURANT CHAINS HAVE BEEN EXPANDING QUICKLY AS WELL TWO YEARS AGO THOSE COMPANIES DIDN'T KNOW WHERE THIS AREA WAS AND NOW WE'RE JUST INUNDATED WITH CALLS DAILY SAYS JUDY RAEFSKI DIRECTOR OF BUSINESS DEVELOPMENT FOR THE GREATER KILLEEN CHAMBER OF COMMERE 9403300170 940330 MARKETING & MEDIA TIME WARNER SONY PLAN SYNDICATION NETWORK FOR RADIO BY JEFFREY A TRACHTENBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SEEKING TO BROADEN THE DISTRIBUTION OF THEIR MUSIC PRODUCTS SONY SOFTWARE CORP AND WARNER MUSIC GROUP WILL LAUNCH A JOINTVENTURE RADIOSYNDICATION NETWORK IN LATE SUMMER OR FALL THE NEW COMPANY SW NETWORKS WILL CREATE RADIO PROGRAMMING INCLUDING PLAYS MORNING SHOWS TALK SHOWS AND MUSIC SHOWS TO BE DISTRIBUTED VIA SATELLITE DIGITAL RADIO AND CONVENTIONAL BROADCASTING SONY SOFTWARE IS A UNIT OF SONY CORP WHILE WARNER MUSIC GROUP IS A UNIT OF TIME WARNER INC SW NETWORKS IS THE LATEST VENTURE BETWEEN THE SONY AND TIME WARNER MUSIC GROUPS THE TWO LARGEST RECORD COMPANIES IN THE INDUSTRY THE TWO HAVE BEEN PARTNERS SINCE 1991 IN COLUMBIA HOUSE WHICH WAS SONY MUSIC'S RECORD CLUB UNTIL SONY AGREED TO GIVE A HALFINTEREST TO WARNER IN ORDER TO SETTLE AN UNRELATED LAWSUIT SINCE THEN THE TWO COMPANIES HAVE INVESTED IN A NUMBER OF JOINT PROJECTS INCLUDING THE PLANNED LAUNCH OF A COMPETITOR TO VIACOM INC'S MTV NETWORKS SUSAN SOLOMON 41 YEARS OLD A FORMER EXECUTIVE VICE PRESIDENT AT ANDREWS GROUP INC AN ENTERTAINMENT AND PUBLISHING SUBSIDIARY OF MACANDREWS & FORBES HOLDINGS INC HAS BEEN NAMED PRESIDENT OF THE NEW STARTUP COMPANY MACANDREWS & FORBES HOLDINGS IS OWNED BY FINANCIER RONALD PERELMAN IN RECENT MONTHS MS SOLOMON AN ATTORNEY BY TRAINING HAS ACTED AS AN ADVISER TO SEVERAL OTHER PROJECTS IN WHICH SONY AND WARNER MUSIC HAVE INVESTED INCLUDING VIVA THE GERMAN MUSICTELEVISION CHANNEL AND DIGITAL CABLE RADIO ASSOCIATES LP A CABLEDELIVERED DIGITAL MUSIC SUBSCRIPTION SERVICE BASED IN HORSHAM PA WHICH DOES BUSINESS AS MUSIC CHOICE THE NEW RADIO NETWORK GREW OUT THE JOINT INVESTMENT LAST YEAR IN DIGITAL CABLE RADIO AT THE TIME BOTH COMPANIES INDICATED THAT THEY WERE LOOKING FOR A NEW PROGRAMMING ENTITY TO DISTRIBUTE RECORDED MUSIC IN RECENT YEARS THE NUMBER OF NEW RECORDINGS HAS EXPLODED OUTPACING THE ABILITY OF THE SIX MAJOR RECORD COMPANIES TO GUARANTEE EACH AN AUDIENCE MS SOLOMON DECLINED TO COMMENT ON THE NEW VENTURE AS DID SONY AND WARNER MUSIC BUT PEOPLE FAMILIAR WITH THE PLAN SAY SW NETWORKS HOPES TO ATTRACT A NUMBER OF RADIOSTATION OWNERS AS JOINTVENTURE PARTNERS THE BUDDING NETWORK INTENDS TO MAKE ITS PROGRAMMING AVAILABLE FOR SALE TO OTHER RADIO STATIONS ROBERT UNMACHT PRESIDENT OF M STREET CORP A PUBLISHER OF A BROADCAST NEWSLETTER DESCRIBED THE CURRENT RADIOSYNDICATION MARKET AS UNUSUALLY COMPETITIVE RADIO HAS A MUCH LOWER COST OF ENTRY THAN TELEVISION SO IT HAS ATTRACTED A LOT OF COMPANIES SAYS MR UNMACHT IT'S HARD TO MAKE A PROFIT BECAUSE MOST STATIONS PREFER TO BARTER ADVERTISING TIME FOR PROGRAMMING RATHER THAN PAY CASH ADVERTISING SUPPORT HE ADDED IS DIFFICULT TO GENERATE BECAUSE THE RADIO MARKET IS SO FRAGMENTED 9403300169 940330 ECONOMY CONSUMERS LOADING UP ON DEBT AGAIN BUT MANY VIEW TREND AS POSITIVE SIGN BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL CONSUMERS ARE BORROWING HEAVILY AGAIN BUT IS THAT AN OMINOUS SIGN THAT ANOTHER 1980SSTYLE BINGE AND BUST IS ON THE WAY OR DOES IT SIGNAL THAT THE CONSUMER IS FINALLY CONFIDENT IN THE FUTURE AGAIN AND THEREFORE WILLING TO TAKE ON DEBT MOST ECONOMISTS BELIEVE THE LATTER IS CLOSER TO THE TRUTH AND SEE THAT AS GOOD REASON TO REMAIN OPTIMISTIC ABOUT THE ECONOMY OVER THE NEXT FEW MONTHS DEBT AFTER ALL MEANS PEOPLE ARE SPENDING AND THUS CONTRIBUTING TO ECONOMIC ACTIVITY CONSIDER JAMES HOLCOMB A BLOOMFIELD HILLS MICH SALESMAN OF BUILDING MATERIALS HE'S ABOUT TO BUY A NEW CAR AND JUST USED HIS CREDIT CARD TO LINE UP A CARIBBEAN CRUISE MR HOLCOMB ISN'T WORRIED ABOUT THE EXTRA DEBT I KNOW MY BUSINESS WILL BE GOOD HE SAYS PEOPLE ARE BUYING AND RETAIL OUTLETS ARE PLACING NEW ORDERS ANALYSTS EXPECT NEXT WEEK'S FEDERAL RESERVE BOARD REPORT ON FEBRUARY INSTALLMENT DEBT WILL SHOW ANOTHER LARGE INCREASE IN DEBT ACCUMULATION BY CONSUMERS AND THEY SAY THE RECENT RISE IN INTEREST RATES WILL HAVE ONLY A MODERATING EFFECT ON CONSUMERS' THIRST FOR NEW AUTOS AND FURNITURE PEOPLE ARE NOT AS APPREHENSIVE ABOUT THE FUTURE SAYS RICHARD CURTIN DIRECTOR OF CONSUMER SURVEYS FOR THE UNIVERSITY OF MICHIGAN CONSUMER CONFIDENCE MEASURED BY THE CONFERENCE BOARD IS AT ITS HIGHEST LEVEL IN SEVERAL YEARS WHICH USUALLY BODES WELL FOR FURTHER BORROWING AND MORE ECONOMIC EXPANSION YESTERDAY THE BOARD SAID CONFIDENCE FOR MARCH JUMPED SEVEN PERCENTAGE POINTS TO 867 ON AN INDEX OF 100 THE HIGHEST LEVEL SINCE JULY 1990 BUT FEDERAL RESERVE BOARD GOVERNOR LAURENCE LINDSEY IS WORRIED TAKING NOTE OF CONSUMERS' LOW SAVINGS RATE AND INCREASING DEBT LEVELS HE SAID IN A RECENT SPEECH THAT THE FINANCIAL CONDITION OF MUCH OF THE HOUSEHOLD SECTOR POSES ONE OF THE MOST SIGNIFICANT DOWNSIDE RISKS TO THE CURRENT ECONOMIC ENVIRONMENT THE NATION'S SAVINGS RATE HAS FALLEN TO ABOUT 4 OF DISPOSABLE INCOME AT LATEST COUNT FROM 52 IN LATE 1992 HE ALSO WARNED THAT THE SAVINGS AMERICANS DO HOLD ARE LESS AVAILABLE FOR EMERGENCIES BECAUSE AN INCREASING SHARE OF SAVINGS ARE TIED UP IN TAXSHELTERED RETIREMENT ASSETS MARK ZANDI AN ECONOMIST WITH REGIONAL FINANCIAL ASSOCIATES IN WEST CHESTER PA THINKS THE TRUE SAVINGS RATE IS NOT AS LOW AS IT LOOKS BECAUSE MANY PEOPLE TOOK EQUITY OUT OF THEIR HOMES WHEN THEY REFINANCED MORTGAGES THE SAVINGS RATE IS DEFINED BY DISPOSABLE INCOME MINUS SPENDING WHEN THOSE PEOPLE WHO REFINANCED THEIR MORTGAGES AND TOOK EQUITY OUT OF THEIR HOMES GOT THE WINDFALL THEY SPENT SOME OF IT OVERALL SPENDING THUS WENT UP BUT IT DIDN'T COME OUT OF INCOME HE THINKS THE TRUE SAVINGS RATE BASICALLY STAYED FLAT AT AROUND 5 ALSO THE EXTRA DEBT THAT CONSUMERS ARE TAKING ON DOESN'T SEEM TO BE CRIMPING THEIR AVAILABLE CASH EVEN THOUGH TOTAL CONSUMER DEBT AS A PERCENTAGE OF DISPOSABLE INCOME IS BACK TO THE LEVELS OF THE LATE 1980S LOW INTEREST RATES HAVE MADE THAT DEBT MUCH MORE AFFORDABLE THE AMOUNT OF DISPOSABLE INCOME INDIVIDUALS ALLOCATE TO DEBT SERVICE EACH MONTH FELL LAST YEAR TO AN AVERAGE 159 IN THE FOURTH QUARTER FROM 163 A YEAR EARLIER AND 183 IN LATE 1989 AS A RESULT DELINQUENCIES ON BANK LOANS ARE AT THEIR LOWEST LEVEL IN 10 YEARS DELINQUENCIES ON CREDIT CARD LOANS ARE AT THEIR LOWEST LEVEL IN 15 YEARS AND DELINQUENCIES ON MORTGAGES HAVEN'T BEEN THIS LOW IN 20 YEARS MOREOVER PERSONAL BANKRUPTCIES ARE DOWN 20 FROM THE RECORD ONE MILLION IN 1991 AND AUTO REPOSSESSIONS AS A PERCENT OF TOTAL LOANS OUTSTANDING HAVE NEVER BEEN LOWER SAYS FORD MOTOR CREDIT CO THE DROP IN LOAN DELINQUENCIES LEADS TO A GREATER WILLINGNESS BY BANKS TO EXTEND MORE CREDIT SAYS JAMES CHESSEN CHIEF ECONOMIST OF THE AMERICAN BANKERS ASSOCIATION INDEED INSTALLMENT DEBT ROSE TO 7961 BILLION IN JANUARY FROM 7436 BILLION A YEAR EARLIER THAT'S HELPFUL FOR THE ECONOMY IN THE SHORTRUN IT MAY HURT THE ECONOMY IN THE LONGER TERM IF CONSUMERS AGAIN FIND THEMSELVES IN OVER THEIR HEADS AND CUT BACK SHARPLY ON SPENDING KMART CORP FOR ONE DOESN'T SEE THAT HAPPENING ANYTIME SOON IN MOST REGIONS WHERE THE RETAILER'S 2300 STORES ARE LOCATED SAYS MANAGER OF SPECIAL PROJECTS ROBERT HAYES YOU SEE AN IMPROVEMENT IN EMPLOYMENT AND HIGHER INCOMES MAKING DEBT A LITTLE SAFER THE NEW HOME DANIEL MCGILL IS HAVING BUILT IN RALEIGH NC FOR EXAMPLE IS ONE REASON DEBT IS RISING AND SAVINGS ARE HEADED DOWN TWO WEEKS AGO HE DOUBLED HIS EXISTING MORTGAGE TO 120000 AND HE PLANS TO TAP SAVINGS TO PAY FOR NEW FURNITURE AND LANDSCAPING I'M IN A HOT INDUSTRY THE 35YEAROLD SALESMAN FOR A HEALTH MAINTENANCE ORGANIZATION EXPLAINS THAT GIVES ME A LOT OF CONFIDENCE ABOUT FUTURE POSSIBILITIES NONETHELESS THE HEADY PACE OF DEBT ACCUMULATION IN THE FOURTH QUARTER IS EXPECTED TO BEGIN SLOWING IN THE COMING MONTHS EDWARD MCKELVEY OF GOLDMAN SACHS & CO BELIEVES CONSUMERS TOOK MUCH OF THE SAVINGS THEY GOT FROM REFINANCING THEIR MORTGAGES TO PAY INTEREST ON NEW LOANS FOR AUTOS AND DURABLE GOODS SUCH AS APPLIANCES NOW THAT REFINANCING IS DECLINING BECAUSE OF RISING INTEREST RATES THE MECHANISM THAT CREATED THE CASH FLOW FOR OTHER LOANS IS GETTING WEAKER HE SAYS GEORGE EADS GENERAL MOTORS CORP'S CHIEF ECONOMIST AGREES HE EXPECTS THAT AS CONSUMERS SAVE MORE AND REFINANCE LESS OVER THE COMING MONTHS HIS INDUSTRY'S ANNUAL SALES RATE WILL DECLINE FROM THE CURRENT BRISK PACE OF 156 MILLION VEHICLES TO ABOUT 15 MILLION VEHICLES ANNUALLY THE QUESTION NOW IS WHETHER CONSUMERS WILL MERELY MODERATE THEIR DEBT ACCUMULATION OR CUT BACK DRASTICALLY ON BORROWING AS THEY DID IN 1990 WHEN THEY WERE OVEREXTENDED AND WHEN BANKS WERE CLAMPING DOWN ON NEW LOANS A LOT HINGES ON THEIR WILLINGNESS TO DROP THE SAVINGS RATE FURTHER SAYS MR MCKELVEY AND IT HINGES ON THE ABILITY OF THE ECONOMY TO CONTINUE PRODUCING NEW JOBS RAISING EXISTING INCOME LEVELS AND BOOSTING CONSUMER CONFIDENCE MR ZANDI FOR ONE BELIEVES THE ELEMENTS ARE IN PLACE TO KEEP SPENDING AT STIMULATIVE LEVELS AND KEEP CONSUMERS OUT OF TOO MUCH TROUBLE IT'S NOT LIKE THE 1980S WHEN PEOPLE KEPT SPENDING MONEY ON VACATIONS MEALS OUT AND THINGS THEY DIDN'T NEED UNTIL THEY GOT IN OVER THEIR HEADS CONTENDS MR ZANDI NOW CONSUMERS ARE BUYING AUTOS AND FURNITURE THEY ARE LIKE A COMPANY MAKING AN INVESTMENT IN ITS FUTURE HE SAYS THE LENDING SPIGOT WILL STAY OPEN LONGER AS A RESULT 9403300168 940330 ENTERPRISE FAMILY BUSINESS PROGRAMS AT UNIVERSITIES PROLIFERATE SEEKING TO TAP RICH MARKET EDUCATORS FIND COMPETITION IS INTENSIFYING BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL UNIVERSITIES ARE FINDING THAT TEACHING FAMILY BUSINESS CAN BE AS TRICKY AS RUNNING A FAMILY BUSINESS HOPING TO TAP A RICH MARKET EDUCATORS ARE STARTING ONE PROGRAM AFTER ANOTHER TO HELP SUCH FAMILY COMPANIES SINCE 1990 THE NUMBER OF COLLEGES AND UNIVERSITIES OFFERING FAMILYBUSINESS SEMINARS WORKSHOPS AND CONFERENCES HAS MORE THAN TRIPLED TO ABOUT 50 THEY TEACH EVERYTHING FROM SUCCESSION AND ESTATE PLANNING TO RESOLUTION OF DISPUTES AMONG SIBLINGS AND TREATMENT OF NONFAMILY MANAGERS BUT THE EXPANSION HAS BROUGHT GROWING PAINS SOME NEWCOMERS HAVE TROUBLE LINING UP MEMBERS AND SPONSORS OTHERS FRET OVER A SHORTAGE OF PROGRAM SPEAKERS AND TOPICS POTENTIAL STUDENTS ARE GRIPING ABOUT COSTS WILLIAM BASLER CHAIRMAN OF BASLER ELECTRIC CO A FAMILYOWNED HIGHLAND ILL ELECTRICALEQUIPMENT MAKER SAYS HE HAS BEEN SOLICITED BY SOUTHERN ILLINOIS UNIVERSITY BUT QUESTIONS THE PROGRAM'S 2000 COST THE FEE ADMITS TWO FAMILY MEMBERS TO FOUR QUARTERLY FAMILYBUSINESS FORUMS AT 500 A MEETING YOU BETTER BE OFFERING SOMETHING FANTASTIC MR BASLER SAYS SOUTHERN ILLINOIS UNIVERSITY'S PROGRAM SOUNDS LIKE A GOOD IDEA BUT LIKE ANYTHING ELSE IT'S GOT TO BE WORTH THE MONEY OTHERS THINK RIVALRY BETWEEN PROGRAMS IS TURNING MORE HEATED AS COMPETITION INTENSIFIES EARLIER THIS MONTH FOR INSTANCE THE DIRECTORS OF SOME STARTUP FAMILYBUSINESS PROGRAMS WERE PROHIBITED FROM ATTENDING A THREEDAY STRATEGY MEETING AT THE UNIVERSITY OF SAN DIEGO HELD BY DIRECTORS OF ABOUT 25 MAINLY OLDER PROGRAMS JACQUELYN FREIBERG DIRECTOR OF THE UNIVERSITY'S FAMILY BUSINESS INSTITUTE SAYS THE SESSION WAS LIMITED LARGELY TO OLDER PROGRAMS TO SHARPEN THE MEETING'S FOCUS BUT OTHERS SAW THE EXCLUSIVITY AS EVIDENCE OF RISING COMPETITION IT REFLECTS A TERRITORIAL FEAR OF OTHER UNIVERSITIES COMING INTO YOUR BACKYARD TO COMPETE FOR MEMBERS AND SPONSORS SAYS NANCY UPTON DIRECTOR OF BAYLOR UNIVERSITY'S INSTITUTE FOR FAMILY BUSINESS DR UPTON WHOSE SEVENYEAROLD PROGRAM IN DALLAS IS ONE OF THE OLDEST SAYS SHE BOYCOTTED THE SAN DIEGO MEETING IN PROTEST SOME CONSIDER TENSIONS INEVITABLE AS MORE UNIVERSITIES TURN TO FAMILYBUSINESS PROGRAMS THEY ARE A HIGHEREDUCATION FINANCING TOOL IN A MARKET THAT'S STARVED FOR FINANCING SAYS JOHN VINTURELLA CHAIRMAN OF THE LEVYROSENBLUM INSTITUTE'S FAMILYBUSINESS PROGRAM AT TULANE UNIVERSITY IN NEW ORLEANS AT TULANE'S ONEYEAROLD PROGRAM SPONSOR CONTRIBUTIONS AND FAMILYBUSINESS MEMBERSHIP FEES ALONE BRING IN MORE THAN 100000 ANNUALLY DR VINTURELLA SAYS SCHOOLS ALSO HOPE TO BE REWARDED WITH GRANTS FROM GRATEFUL AND OFTEN WEALTHY FAMILYBUSINESS OWNERS HE SAYS IN 1992 CASE WESTERN RESERVE UNIVERSITY'S FAMILYBUSINESS PROGRAM IN CLEVELAND RECEIVED A 15 MILLION FUNDING COMMITMENT FROM A FOUNDATION CONTROLLED BY THE HORVITZ FAMILY WHICH MADE A FORTUNE WITH BUSINESSES IN CONSTRUCTION REAL ESTATE AND MEDIA SOME RELATIVELY NEW PROGRAMS ARE THRIVING AT BELMONT UNIVERSITY'S CENTER FOR FAMILY BUSINESS IN NASHVILLE TENN EXECUTIVE DIRECTOR WILLIAM BELLET SAYS IT TOOK LESS THAN A YEAR TO REACH HIS GOAL OF FIVE SPONSORS AND 25 MEMBERS YET MANY OTHER SCHOOLS RUSHING TO TAP THIS POTENTIALLY HUGE FUNDING SOURCE SAY THE TASK HAS BEEN TOUGHER THAN THEY THOUGHT PEOPLE HAVE UNDERESTIMATED WHAT IT TAKES TO ESTABLISH A SUCCESSFUL PROGRAM SAYS PATRICIA COLE WHO IS ORGANIZING A FAMILYBUSINESS CENTER AT NOVA SOUTHEASTERN UNIVERSITY IN FORT LAUDERDALE FLA FOR ONE THING MANY SCHOOLS HAVE DISCOVERED THAT FAMILYBUSINESS OWNERS DON'T ALWAYS KNOCK DOWN THEIR DOORS TO ENROLL MOST FAMILY BUSINESSES DON'T KNOW THEY NEED THIS SAYS DR VINTURELLA HIMSELF THE PRESIDENT OF A FAMILYOWNED PLUMBING AND BUILDING SUPPLIES CONCERN IN COVINGTON LA TO LINE UP MEMBERS PROGRAM DIRECTORS HAVE TO DO MISSIONARY WORK HE ADDS TULANE RECENTLY HIRED AN MBA GRADUATE TO DEVOTE 15 HOURS A WEEK TO RECRUITING HE NOTES AT SOUTHERN ILLINOIS UNIVERSITY AT EDWARDSVILLE ADMINISTRATORS HOPE THEIR FAMILYBUSINESS PROGRAM NOT ONLY WILL PAY FOR ITSELF BUT ALSO DEVELOP A CONSTITUENCY FOR THE UNIVERSITY SAYS RICHARD LUMMA DIRECTOR OF SOUTHERN ILLINOIS UNIVERSITY'S OFFICE OF MANAGEMENT STUDIES YET AFTER EIGHT MONTHS OF SOLICITING INCLUDING A MAILING TO 5000 FAMILY BUSINESSES THE PROGRAM HAS SIGNED UP ONLY A DOZEN MEMBERS MR LUMMA SAYS HE WANTS TO ENROLL 30 TO 40 COMPANIES MR LUMMA SO FAR HAS LINED UP THREE SPONSORS YET THAT IS ONLY HALF OF THE SIX SPONSORS HE HOPES TO ENLIST AND HE SAYS THOSE HE HAS ATTRACTED SIGNED ON ONLY AFTER HE SLASHED THEIR INITIAL CONTRIBUTION IN HALF TO 5000 EACH AT SOUTHWEST MISSOURI STATE UNIVERSITY'S FAMILY BUSINESS FORUM IN SPRINGFIELD DIRECTOR CHARLES PETTIJOHN SAYS IT HAS TAKEN THE PROGRAM A YEAR TO RAISE 4000 APIECE FROM JUST TWO SPONSORS HE HOPES TO ATTRACT FIVE SPONSORS IT HAS BEEN A CHALLENGE DR PETTIJOHN SAYS THE SPONSORS WANT A RETURN ON THEIR INVESTMENT THEY DON'T WANT TO REGARD IT AS A DONATION WHILE INTEREST IN THE FAMILYBUSINESS MARKET CLEARLY HAS GROWN AMONG FINANCIAL AND PROFESSIONAL SERVICE PROVIDERS MANY SAY IT IS UNCLEAR WHETHER SPONSORSHIP OF A UNIVERSITY PROGRAM IS AN EFFICIENT WAY TO REACH SUCH COMPANIES ONE OBVIOUS OBSTACLE TO PREVENT THE APPEARANCE THAT THEIR CONFERENCES ARE THINLY DISGUISED SALES PITCHES MOST SCHOOLS MAKE SPONSORS PROMISE TO NEVER SOLICIT MEMBERS DESPITE SUCH RESTRICTIONS WE'VE GENERALLY DECIDED IT'S BEEN A TERRIFIC INVESTMENT BECAUSE OF THE LONGTERM RELATIONSHIPS PROGRAM SPONSORSHIP FOSTERS SAYS DONALD SCOTTO A COOPERS & LYBRAND TAX PARTNER WHOSE PARSIPPANY NJ OFFICE FUNDS ONE UNIVERSITY PROGRAM 9403300166 940330 BUSINESS & RACE BY LEON E WINTER WHILE THE NATION WATCHED THE MOSTLY WHITE WINTER OLYMPICS LAST MONTH 2000 BLACK SKIERS TOOK TO THE SLOPES AT A COLORADO RESORT SETTING LOCAL RECORDS BY THEIR VERY PRESENCE THE NBS IS THE LARGEST GROUP WE'VE EVER HAD SAYS KRISTEN KOPPLIN SPOKESWOMAN FOR COPPER MOUNTAIN THE RESORT THAT ALSO HOSTED THE NATIONAL BROTHERHOOD OF SKIERS TWO YEARS AGO THEY REPRESENT A 2 MILLION INFLUX INTO OUR COMMUNITY SO IT'S BEEN A COMMUNITY EFFORT TO GET THEM BACK SHE SAYS THAT INCLUDED ADDING BLACK MODELS TO COPPER MOUNTAIN'S BROCHURES AND MAKING A 15000 DONATION TO SUPPORT NBS'S MISSION HELPING MINORITY SKIERS MAKE THE US OLYMPIC TEAM THE NBS NUMBERS 14000 SKIERS HALF ARE WELLHEELED PROFESSIONALS SAYS SPOKESMAN BOB BRADSHAW WHEN THE GROUP MET IN VAIL LAST YEAR SOME 6000 SKIERS ATTENDED AND PUMPED 6 MILLION TO 10 MILLION INTO THE LOCAL ECONOMY NEXT YEAR IT WILL GATHER AT STEAMBOAT SPRINGS NBS MEETINGS HAVE ATTRACTED JOB RECRUITERS INCLUDING DRUG MAKER STERLING WINTHROP ONE OF THE CHICAGOBASED GROUP'S FEW CORPORATE SPONSORS BUT THE BOTTOM LINE IS WE DON'T HAVE A SINGLE SKIINDUSTRY SPONSOR SAYS MR BRADSHAW WHO CONSULTS ON MARKETING SKIING TO AFRICANAMERICANS I DON'T THINK ANY SKI CLUB HAS A MAJOR SPONSOR SAYS DAVID INGEMIE OF SKI INDUSTRIES AMERICA WHICH REPRESENTS SKIEQUIPMENT MAKERS THE INDUSTRY FOCUSES ON MARKETING IN SKI MAGAZINES AND RETAIL OUTLETS HOWEVER GETTING A BLACK SKIER TO WIN AN OLYMPIC MEDAL OR A WORLD CUP RACE WOULD REALLY SET THINGS OFF MR INGEMIE SAYS THE AVERAGE NONHISPANIC FAMILY GETS ONE DIRECTMAIL PITCH A DAY THE AVERAGE HISPANIC HOME GETS ONE EVERY TWO WEEKS TRADE OFFICIALS SAY BUT MARKETERS SAY THE PAPER CHASE MAY SOON CATCH UP TO SPANISHSPEAKING HOMES THE SURGE IN HISPANIC CONSUMERS HAS BARELY AFFECTED THE DIRECTMARKETING BUSINESS BECAUSE THERE ARE SO FEW MAILING LISTS OF HISPANIC NAMES AVAILABLE FOR SALE SAYS BEATRIZ MALLORY COFOUNDER OF DMA DIRECTO A SECTION OF THE DIRECT MARKETING ASSOCIATION NY DEVOTED TO HISPANIC MARKETING IT'S A CATCH22 IF NO ONE IS MAILING THERE ARE NO RESPONSES TO GENERATE LISTS ANYONE TRYING SOMETHING NEW HAS HAD TO BUILD A LIST FROM SCRATCH THE BREAKTHROUGH CAME IN 1989 WHEN THE SPANISH TELEVISION NETWORK UNIVISION MADE THE NAMES AND ADDRESSES OF ONE MILLION ENTRANTS OF A SWEEPSTAKES PROMOTION AVAILABLE TO MARKETERS SAYS RICK BLUME OF DATABASE MANAGEMENT NEW YORK DIRECT MARKETERS OF OTHER PRODUCTS THEN DID THEIR OWN MAILINGS AND BUILT NEW LISTS STILL THERE ARE ONLY 50 SUCH SPECIFIC LISTS AS OPPOSED TO 25000 GENERAL LISTS THAT MAKES IT HARDER FOR TERESA IGLESIAS TO REACH THE TARGET MARKET FOR HER BILINGUAL NINOS CATALOG OF SPANISHLANGUAGE ENTERTAINMENT FOR CHILDREN SHE TARGETS AFFLUENT SECONDGENERATION AND THIRDGENERATION HISPANIC PARENTS WHO FEAR THEIR CHILDREN MAY BECOME DISENGAGED FROM THEIR HERITAGE MS IGLESIAS BASED IN ANN ARBOR MICH EXPECTS HER EFFORTS TO BUILD A 200000NAME LIST WILL PAY OFF IN LOYAL CUSTOMERS WHILE MOST DIRECTMAIL PITCHES ARE QUICKLY TOSSED OUT IN HISPANIC HOMES IT'S SUCH A NOVELTY THAT WHEN THEY GET SOMETHING THEY TEND TO KEEP IT MS MALLORY SAYS SOME UNLIKELY COMPUTER TECHNICIANS ARE EMERGING FROM A BASEMENT DEEP IN THE 'HOOD OF EAST FLATBUSH BROOKLYN BASEMENT RECORDINGS STARTED TEACHING YOUNGSTERS DIGITALRECORDING TECHNOLOGY IN 1989 AS A COMMUNITY SERVICE NOW IT PUTS ABOUT 1000 PEOPLE A YEAR THROUGH FREE SIXWEEK COURSES IN DIGITAL AUDIO VIDEO AND GRAPHICS TECHNOLOGIES STUDENTS INCLUDE GRADESCHOOLERS GRANDMOTHERS HIGH SCHOOL DROPOUTS EDUCATORS AND PROFESSIONAL MUSICIANS BASEMENT'S EXHIBITIONS AT LOCAL COLLEGES DRAW THOUSANDS OF EAGER PARTICIPANTS FACES YOU'D NEVER SEE AT A PERSONAL COMPUTER EXPO SAYS BASEMENT GENERAL MANAGER AUGUSTIN HINKSON IN RETURN FOR A BASEMENT FULL OF EXPENSIVE HARDWARE AND SOFTWARE BASEMENT GIVES DONORS LIKE YAMAHA CORP OF AMERICA DETAILED QUARTERLY REPORTS ON HOW STUDENTS USE THE EQUIPMENT WE NEED TO EXPOSE AS MANY PEOPLE AS POSSIBLE TO THE IDEA OF MUSIC CREATION AND TO BE FOCUSED ON THE NEEDS OF THE PEOPLE WHO BUY OUR PRODUCTS SAYS YAMAHA CORPORATE PLANNER STEVEN THATCHER BASEMENT INTRODUCES NOVICES TO TECHNOLOGY BY TAILORING IT TO THEM SAYS FOUNDER TREVOR JOHN A COLUMBIA UNIVERSITYTRAINED ENGINEER ITS MOTTO THE IMPOSSIBLE IS ONLY MEDIOCRE DOWN HERE COMPUTERS OFFER THE BLACK COMMUNITY THE OPPORTUNITY TO PUBLISH WITHOUT THE HUGE CAPITAL REQUIRED SAYS BRIAN HEUCKROTH OF ADOBE SYSTEMS WHICH GIVES BASEMENT VIDEO AND GRAPHICS SOFTWARE WE'RE TRYING TO MAKE IT EASIER FOR PEOPLE WHO AREN'T CLASSICALLY TRAINED THAT'S WHERE WE'LL GET SUBSTANTIAL GROWTH AFRICAN IMMIGRANTS ARE NOW THE BEST EDUCATED GROUP IN BRITAIN REPORTS THE SPRING ISSUE OF THE JOURNAL OF BLACKS IN HIGHER EDUCATION THERE ARE ABOUT 130000 AFRICAN IMMIGRANTS IN BRITAIN CENSUS DATA SHOW THAT 26 EXCEED THE US EQUIVALENT OF OVER ONE YEAR OF COLLEGE COMPARED WITH 13 OF ALL WHITES AFRICANS IN BRITAIN ARE TWICE AS LIKELY AS WHITES TO BE PROFESSIONALS AFRICAN IMMIGRANTS ARE A TINY BRITISH MINORITY ONLY 02 OF THE POPULATION BUT THE PUBLICATION SAYS THE DATA PUT A SOLID NAIL IN THE COFFIN OF THEORIES OF BLACK INTELLECTUAL INFERIORITY HISPANDATA A NATIONAL HISPANIC RESUME REFERRAL SERVICE SEEKS RESUMES OF SEASONED HISPANIC PROFESSIONALS AND MIDLEVEL EXECUTIVES THE DATABASE SERVICE IS RUN BY HISPANIC BUSINESS MAGAZINE BASED IN SANTA BARBARA CALIF WHICH SAYS NAFTA IS INCREASING DEMAND FOR MANAGERS WITH BILINGUAL AND BICULTURAL SKILLS 9403300165 940330 TIG HOLDINGS CLEARS BUYBACK NEW YORK TIG HOLDINGS INC SAID DIRECTORS AUTHORIZED THE REPURCHASE OF AS MANY AS 13 MILLION SHARES WHICH WILL TAKE PLACE EARLIER THAN THE COMPANY HAD PLANNED TIG A HOLDING COMPANY FOR A PROPERTYANDCASUALTY INSURANCE GROUP SAID THE BUYBACKS MAY BE MADE IN THE OPEN MARKET OR IN PRIVATELY NEGOTIATED TRANSACTIONS AND WILL BE FINANCED BY AVAILABLE COMPANY FUNDS TIG CURRENTLY HAS 639 MILLION SHARES OUTSTANDING 9403300164 940330 MUNI BOND BOARD DELAYS ITS RULE ON POLITICAL GIVING BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD DELAYED THE EFFECTIVE DATE OF ITS PROPOSED RULE THAT IS DESIGNED TO PREVENT BOND DEALERS FROM MAKING POLITICAL CONTRIBUTIONS TO WIN BUSINESS FROM STATE AND LOCAL GOVERNMENT AGENCIES THE RULE WHICH WAS SUPPOSED TO TAKE EFFECT FRIDAY NOW IS DUE TO TAKE EFFECT 10 DAYS AFTER PUBLICATION OF AN EXPECTED ORDER FROM THE SECURITIES AND EXCHANGE COMMISSION APPROVING THE RULE THE SEC HASN'T YET CONSIDERED THE RULE BUT IS LIKELY TO DO SO AT A MEETING NEXT WEDNESDAY SEPARATELY THE US DISTRICT COURT IN MONTGOMERY ALA POSTPONED FOR A WEEK A HEARING THAT HAD BEEN SCHEDULED FOR TOMORROW ON A LAWSUIT SEEKING TO BLOCK THE RULE THE SUIT WAS FILED BY WILLIAM BLOUNT AN ALABAMA MUNI DEALER WHO ALSO HEADS THE ALABAMA DEMOCRATIC PARTY HE CONTENDS THAT THE PROPOSED RULE IS UNCONSTITUTIONAL THE CONTROVERSIAL PROPOSAL WOULD BAR BOND DEALERS FROM DOING BUSINESS WITH STATE OR LOCAL GOVERNMENT ENTITIES FOR TWO YEARS AFTER THEY MAKE POLITICAL CONTRIBUTIONS TO OFFICIALS OF THE INVOLVED JURISDICTIONS THE MUNICIPALSECURITIES BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT SAID THE DELAY WILL PROVIDE THE TIME NECESSARY FOR SEC CONSIDERATION OF AND DEALER COMPLIANCE WITH THE PROPOSED RULE IT MADE NO MENTION OF THE LAWSUIT MR BLOUNT HAS LED THE ALABAMA DEMOCRATIC PARTY SINCE 1991 HE SAID HE HAS MADE AND SOLICITED POLITICAL CONTRIBUTIONS FOR A MYRIAD OF CANDIDATES FOR OFFICE OF PUBLIC ENTITIES THAT SELL BONDS HE SAID HIS FIRM BLOUNT PARRISH & ROTON INC HAS BEEN SELECTED BY SOME OF THOSE ENTITIES AND HAS BEEN REJECTED BY OTHERS TO UNDERWRITE THEIR BONDS SEC CHAIRMAN ARTHUR LEVITT HAS SAID HE BELIEVES THE RULE WILL PASS CONSTITUTIONAL MUSTER BUT MR BLOUNT ARGUED THAT EVERY CONSTITUTIONAL EXPERT WE'VE TALKED TO SAYS IT'S PATENTLY UNCONSTITUTIONAL THE MUNICIPAL SECURITIES RULEMAKING BOARD CLAIMS ITS RULE IS IMMUNE FROM CONSTITUTIONAL CHALLENGE BECAUSE IT IS NOT A GOVERNMENT ACTOR BUT THE NATIONAL ASSOCIATION OF STATE TREASURERS ONE OF A NUMBER OF STATE AND LOCAL GROUPS TO ATTACK THE RULE CALLED THIS STANCE DISINGENUOUS BOTH THE SEC AND THE MSRB ARE NAMED AS DEFENDANTS IN MR BLOUNT'S SUIT LEGAL EXPERTS FAMILIAR WITH THE CASE EXPECT IT TO END UP BEFORE A FEDERAL APPEALS COURT WHERE CHALLENGES TO SEC RULES NORMALLY ARE HEARD 9403300163 940330 TUESDAY'S MARKETS BONDS FALL TRIGGERING BIG SELLOFF IN STOCKS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL TUMBLING BOND PRICES SPARKED A STAGGERING SELLOFF IN THE STOCK MARKET DRIVING THE DOW JONES INDUSTRIAL AVERAGE BELOW 3700 FOR THE FIRST TIME SINCE DEC 1 THE DOLLAR WAS MIXED THE DOW INDUSTRIALS SANK 6333 POINTS OR 168 TO 369902 WAVES OF SELLING SWAMPED THE MARKET NEAR THE CLOSE SETTING OFF THE NEW YORK STOCK EXCHANGE COLLAR THAT SYSTEM SLOWS COMPUTERAIDED PROGRAM TRADING WHENEVER THE INDUSTRIAL AVERAGE MOVES UP OR DOWN 50 POINTS FROM THE PREVIOUS DAY'S CLOSE JUST SINCE THURSDAY THE INDUSTRIAL AVERAGE HAS SHED 122 POINTS OR 32 IT IS NOW 7 BELOW ITS HIGH OF 397836 SET ON JAN 31 YESTERDAY'S PUMMELING WAS ESPECIALLY EVIDENT IN THE NEARLY 10TO1 RATIO OF DECLINING STOCKS TO ADVANCERS ON THE BIG BOARD THE ROUT WAS SPURRED BY A PLUNGE IN BOND PRICES AFTER A STRONG REPORT ON CONSUMER CONFIDENCE THE CONFERENCE BOARD REPORTED ITS CONSUMERSENTIMENT INDEX ROSE TO 867 IN MARCH FROM 799 IN FEBRUARY WHAT UNDERMINED THE BOND MARKET WAS THAT THE TREND SHOWS CONSIDERABLE IMPROVEMENT SINCE OCTOBER EVEN MORE TROUBLING WAS THAT THE MARCH LEVEL WAS THE HIGHEST SINCE JULY 1990 THE CONFERENCE BOARD ALSO SAID THAT THE CURRENT LEVEL OF CONSUMER CONFIDENCE HAS HISTORICALLY LED TO AN INCREASINGLY STRONG ECONOMY ONCE AGAIN WE HAVE THE FEAR THAT THE ECONOMY ISN'T GOING TO SLOW DOWN AND THAT WE'RE ONLY IN THE FOOTHILLS OF A MUCH STRONGER TIGHTENING IN FEDERAL RESERVE POLICY SAID RICHARD B BERNER CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH THE DROP IN BOND PRICES PUSHED THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE BACK ABOVE 7 AFTER IT HAD SLIPPED BELOW THAT PSYCHOLOGICALLY IMPORTANT LEVEL ON MONDAY THE LONG BOND TUMBLED MORE THAN A POINT OR MORE THAN 10 FOR EACH 1000 FACE AMOUNT WITH THE YIELD RISING TO 706 FROM 687 MONDAY HITTING ITS HIGHEST LEVEL SINCE FEBRUARY 1993 STOCK PRICES TOOK THEIR CUE FROM BONDS EVEN THOUGH MANY ANALYSTS BELIEVE THE FUNDAMENTALS REMAIN BRIGHT FOR THE STOCK MARKET INVESTORS SOLD IN HORDES MR BERNER POINTED OUT THAT AS INTEREST RATES RISE THE VALUE OF STOCK HOLDINGS DECLINE EARNINGS LOOK GOOD AND MARGINS ARE IMPROVING MR BERNER SAID BUT 1 OF EARNINGS IS WORTH LESS WHEN INTEREST RATES ARE AT 706 RATHER THAN 606 STOCK INVESTORS ALSO WERE DISCOURAGED BY BEARISH RECOMMENDATIONS FROM TWO BROKERAGE FIRMS SMITH BARNEY SHEARSON ADVISED CLIENTS TO REDUCE THEIR STOCK HOLDINGS TO 50 FROM 55 OF THEIR PORTFOLIOS THE NATION'S SECONDLARGEST BROKERAGE SAID THE S&P 500 COULD PLUNGE 11 BEFORE THE CORRECTION IS OVER DEAN WITTER REYNOLDS TOLD INVESTORS TO CUT THEIR STOCK HOLDINGS TO 50 FROM 60 OF THEIR PORTFOLIOS THE COMPANY ALSO RECOMMENDED THAT INVESTORS SLASH THEIR BONDMARKET EXPOSURE TO 25 FROM 35 AND RAISE CASH LEVELS TO 25 FROM 5 THOUGH MANY SIGNS POINT TO A STRONGER ECONOMY SOME ANALYSTS SEE HIGHER INTEREST RATES EVENTUALLY SLOWING ECONOMIC GROWTH SINCE STOCKS OFTEN ANTICIPATE ECONOMIC TRENDS THE CURRENT STEEP DECLINES MAY BE EVIDENCE OF THE COMING SLOWDOWN SAID NEIL HOKANSON PRESIDENT OF HOKANSON FINANCIAL MANAGEMENT IN ENCINITAS CALIF HE PREDICTS THAT THE ECONOMY WILL COOL NEXT YEAR NOT ONLY BECAUSE OF THE RISE IN RATES BUT ALSO BECAUSE OF GROWING GOVERNMENT REGULATION AND HIGHER TAXES INDEED THE STOCK MARKET YESTERDAY FLASHED SOME SIGNS OF A POSSIBLE ECONOMIC SLOWDOWN FIRST ECONOMICALLY SENSITIVE STOCKS SUFFERED SOME OF THE STEEPEST LOSSES ALSO THE DOW JONES TRANSPORTATION AVERAGE WAS ONE OF THE HARDEST HIT INDEXES TUMBLING 3553 OR 21 TO 167536 THE TRANSPORTATION AVERAGE IS OFTEN AN INDICATOR OF FUTURE ECONOMIC ACTIVITY BECAUSE ITS COMPONENTS ARE THE AIRLINES TRUCKING CONCERNS AND RAILROADS THAT MOVE GOODS AND PEOPLE AROUND THE COUNTRY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 096 TO 11346 IN MAJOR MARKET ACTION STOCK PRICES PLUNGED VOLUME TOTALED 3011 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 2034 ISSUES FELL AND 280 ROSE THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16735 MARKS AND 10313 YEN COMPARED WITH 16715 MARKS AND 10405 YEN MONDAY 9403300162 940330 SCHLUMBERGER'S STOCK BUYBACK NEW YORK SCHLUMBERGER LTD SAID IT INTENDS TO RESUME ITS COMMONSTOCK REPURCHASE PROGRAM THE HUGE OILFIELD SERVICES AND MEASUREMENT COMPANY SAID UNDER AN AUTHORIZATION BY DIRECTORS THE COMPANY MAY PURCHASE AS MANY AS SEVEN MILLION SHARES ON THE OPEN MARKET DEPENDING ON MARKET CONDITIONS SCHLUMBERGER HAD AN AVERAGE 243 MILLION SHARES OUTSTANDING AT YEAR END IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ITS SHARES WERE DOWN 2 AT 53 9403300161 940330 AMGEN MIT PLAN COLLABORATION THOUSAND OAKS CALIF AMGEN INC AND MASSACHUSETTS INSTITUTE OF TECHNOLOGY ANNOUNCED A LONGTERM RESEARCH COLLABORATION IN THE BIOLOGICAL SCIENCES UNDER THE PACT AMGEN A BIOTECHNOLOGY COMPANY WILL SPEND AS MUCH AS 3 MILLION A YEAR FOR AS LONG AS 10 YEARS IN EXCHANGE FOR CERTAIN PATENT AND TECHNOLOGY RIGHTS RESULTING FROM THE RESEARCH THIS UNIVERSITYINDUSTRY COLLABORATION WILL ADVANCE THE ALREADY RAPID PACE OF SCIENTIFIC DISCOVERIES IN BIOLOGY AND OTHER SCIENCES SAID CHARLES M VEST PRESIDENT OF MIT IN CAMBRIDGE MASS 9403300160 940309 SCHIZOPHRENIA AND PSYCHIATRY'S LIMITS BY YALE KRAMER AS CONGRESS GEARS UP TO ADDRESS THE ISSUE OF MENTAL HEALTH AND HEALTH REFORM FIGURES AS DIVERSE AS ROSALYNN CARTER BETTY FORD AND TIPPER GORE HAVE BACKED THE INCLUSION OF BROAD MENTAL HEALTH COVERAGE IN THE PACKAGE TIPPER GORE HAS ARGUED IN THIS PAPER'S LETTERS COLUMN FOR OUTPATIENT COMMUNITYBASED CARE YET AS WE CONTEMPLATE REFORMS INVOLVING MENTAL HEALTH WE WOULD DO WELL TO LOOK BACK TO AN EARLIER VISIONARY HEALTH REFORM PROJECT SPONSORED BY THE FEDERAL GOVERNMENT THIS ONE AIMED EXCLUSIVELY AT THE MENTALLY ILL IT IS THE 1963 COMMUNITY MENTAL HEALTH CENTERS ACT THE LEGISLATION THAT MADE IT POSSIBLE TO DEINSTITUTIONALIZE HUNDREDS OF THOUSANDS OF HOSPITALIZED MENTAL PATIENTS ACROSS THE COUNTRY AND REDUCE THEM TO HOMELESSNESS AS FAR BACK AS 1989 A JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION STUDY RECOGNIZED THAT 42 TO 49 OF THE HOMELESS ARE MENTALLY ILL A SUBSTANTIAL PORTION OF THIS GROUP IS SCHIZOPHRENIC THE COST OF DEINSTITUTIONALIZATION TO TAXPAYERS HAS BEEN SO FAR SOME 3 BILLION BY SUBSCRIBING TO A SERIES OF UNSUBSTANTIATED CLAIMS AMBIGUOUS FORECASTS AND WISHFUL ASSESSMENTS OF THE FACTS THE KENNEDY ADMINISTRATION AND CONGRESS IN COLLUSION WITH THE MENTALHEALTH BUREAUCRACY DELUDED THEMSELVES AND THE AMERICAN PEOPLE IN A SPECIAL MESSAGE TO CONGRESS FEB 5 1963 PRESIDENT KENNEDY CLAIMED THAT IF WE APPLY OUR MEDICAL KNOWLEDGE AND SOCIAL INSIGHTS FULLY ALL BUT A SMALL PORTION OF THE MENTALLY ILL CAN EVENTUALLY ACHIEVE A WHOLESOME AND CONSTRUCTIVE SOCIAL ADJUSTMENT IT HAS BEEN DEMONSTRATED THAT TWO OUT OF THREE SCHIZOPHRENICS OUR LARGEST CATEGORY OF MENTALLY ILL CAN BE TREATED AND RELEASED WITHIN SIX MONTHS IN THE 31 YEARS SINCE MEDICAL KNOWLEDGE AND SOCIAL INSIGHT HAVE FALLEN WOEFULLY SHORT OF THESE EXAGGERATED CLAIMS OBVIOUSLY VISIONARY REFORMS ARE SUBJECT TO THE LAWS OF UNINTENDED CONSEQUENCES AND WISHFUL THINKING AND THE IMPERFECTIONS OF HUMAN NATURE BUT THAT LESSON IS OFTEN FORGOTTEN WITNESS MRS GORE'S HOPES THE COMMUNITY MENTAL HEALTH CENTERS ACT DID IN 1963 WHAT SHE PROPOSES IN 1994 IT PROMOTED OUTPATIENT COMMUNITYBASED CARE FOR THOSE WHO ARE SERIOUSLY MENTALLY ILL THE CONSEQUENCES WERE DISASTROUS MRS GORE'S WORDS ARE UPBEAT ABSTRACTIONS AND JUST AS UNREALISTIC AS JOHN KENNEDY'S WERE WHEN IT COMES TO MENTAL HEALTH WE RUN THE RISK OF REPEATING THE TRAGIC AND COSTLY MISTAKES OF EARLIER MISGUIDED REFORMS FOR ONE THING THE CONCEPTS ASSOCIATED WITH SERIOUS MENTAL ILLNESS ARE AMBIGUOUS WHAT WE MEAN FOR EXAMPLE BY NORMAL AND PATHOLOGICAL IS DIFFICULT TO DEFINE AND WHEN WE DEFINE THESE CONCEPTS THEY ARE OFTEN DIFFICULT TO APPLY TO PATIENTS A PERSON DIAGNOSED AS SCHIZOPHRENIC IN THE US MAY BE GIVEN A DIFFERENT DIAGNOSIS IN BRITAIN OR GERMANY DIAGNOSTIC AMBIGUITY HAS BEDEVILED PSYCHIATRY FROM ITS BEGINNING AND FOR THE PAST 50 YEARS DOZENS OF COMMITTEES OF THE AMERICAN PSYCHIATRIC ASSOCIATION HAVE LABORED MIGHTILY OVER NOMENCLATURE TWEAKING IT HERE AND FIDDLING WITH IT THERE WITH PRECIOUS LITTLE TO SHOW FOR IT THE ONLY PSYCHIATRISTS WHO NOW FIND OUR THICK BOOK OF NOMENCLATURE USEFUL ARE ACADEMIC RESEARCHERS AND INSURANCE BUREAUCRATS THERE ARE SEVERAL REASONS FOR THIS AMBIGUITY THE FIRST AND MOST IMPORTANT IS THAT WE DON'T KNOW THE SPECIFIC CAUSES OF THE PHENOMENA OF MENTAL ILLNESS PHOBIAS DELUSIONS OBSESSIONS THE BEST AND MOST USEFUL NOMENCLATURES ARE BASED ON A KNOWLEDGE OF CAUSES A SECOND REASON FOR THE AMBIGUITY IS THAT THE SIGNS AND SYMPTOMS WE DEAL WITH ARE HIGHLY VARIABLE AND OFTEN UNSTABLE THEY APPEAR AND DISAPPEAR FOR NO APPARENT REASON AND MAY REAPPEAR IN AN ALTERED FORM FINALLY AMBIGUITY RESULTS FROM THE FACT THAT ALL ILLNESS INCLUDING MENTAL ILLNESS IS DETERMINED PARTLY BY SOCIAL AND CULTURAL VALUES THAT ALSO VARY FROM TIME TO TIME AND CULTURE TO CULTURE FEELINGS OF DEPRESSION ARE EXPERIENCED BY ALL OF US AT ONE TIME OR ANOTHER ARE THEY PATHOLOGICAL YES IF THEY GET BAD ENOUGH BUT WHERE DO WE DRAW THE LINE THIS POLYMORPHOUS QUALITY OF MENTAL ILLNESS OFTEN MAKES IT VERY DIFFICULT TO KNOW WHETHER THE IMPROVEMENT THAT OCCURS IN THE COURSE OF A PATIENT'S ILLNESS IS DUE TO THE TREATMENT WE ARE GIVING OR DUE TO OTHER FACTORS IT IS EVEN MORE DIFFICULT TO PROVE THE EFFECTIVENESS OF TREATMENT TO A REASONABLY SKEPTICAL OUTSIDER THE THERAPIES THAT HAVE DEVELOPED OVER THE PAST 100 OR SO YEARS BOTH PSYCHOTHERAPY AND THE BIOLOGICAL THERAPIES ARE EMPIRICALLY BASED AND LIKE MOST OTHER MEDICAL TREATMENT RESULT IN VARYING DEGREES OF IMPROVEMENT FROM NONE TO CONSIDERABLE AT THIS TIME IN OUR UNDERSTANDING IT IS IMPOSSIBLE TO FORMULATE ACCURATE GENERALIZATIONS ABOUT WHO CAN BENEFIT FROM WHICH FORMS OF PSYCHIATRIC TREATMENTS EXCEPT IN THE BROADEST CATEGORIES WE CAN SAY THAT PATIENTS WITH PERSONALITY DISORDERS ARE NOT LIKELY TO BENEFIT FROM CHLORPROMAZINE AN ANTIPSYCHOTIC MEDICATION AND THAT SOME SCHIZOPHRENICS MAY BENEFIT BUT WE CAN'T SAY WHICH ONES AND TO WHAT DEGREE OR WHAT DANGEROUS SIDE EFFECTS MIGHT DEVELOP TRIAL AND ERROR BASED ON CLINICAL EXPERIENCE IS THE BEST GUIDE FOR THE PRESCRIPTIONS OF BOTH PSYCHOTHERAPY AND MEDICATION THERE IS A GENERAL RULE IN MEDICINE THAT SAYS THE SICKER THE PATIENT THE HARDER HE IS TO CURE AT THE PRESENT TIME MENTAL HEALTH PROFESSIONALS ARE POWERLESS TO CURE A LARGE NUMBER OF PATIENTS WE CAN GET RID OF THE HALLUCINATIONS OF MANY SCHIZOPHRENICS BUT THEY REMAIN SCHIZOPHRENIC FOR THE MOST PART UNABLE TO FUNCTION IN NORMAL SOCIETY WE CANNOT REVERSE THE BRAIN DAMAGE AND COGNITIVE DEFICIENCIES IN THOSE ELDERLY WITH SENILE DEMENTIAS WE CANNOT TRANSFORM THE CHARACTERS OF PARANOID SOCIOPATHIC FELONS WHO HABITUALLY KILL AND INJURE WE CANNOT CURE THESE PEOPLE IT IS VERY DIFFICULT FOR AMERICANS WITH OUR CANDO CULTURE TO ACCEPT THE REALITY OF EVEN TEMPORARY IMPOTENCE IN CERTAIN SPHERES OF EXPERIENCE IF WE CAN GET A MAN ON THE MOON WHY CAN'T WE CURE SCHIZOPHRENIA MAYBE BECAUSE SPACE FLIGHT IS CHILD'S PLAY COMPARED WITH SCHIZOPHRENIA OR MAYBE IF WE FOCUSED AS MUCH ENERGY AND MONEY ON SCHIZOPHRENIA AS WE HAVE ON MOONSHOTS WE'D HAVE CONQUERED THAT TOO IT HAPPENS TOO OFTEN THAT POLITICIANS TURN TO MEDICAL BUREAUCRATS AND SAY WE'LL PAY ANYTHING IF YOU'LL ONLY HELP US LIKE ALL PATIENTS AND FAMILIES OF PATIENTS THEY WANT DESPERATELY TO BELIEVE IN OUR OMNIPOTENCE BUT UNTIL WE UNDERSTAND THE SPECIFIC CAUSES OF ILLNESSES LIKE SCHIZOPHRENIA AND PARANOID SOCIOPATHY PSYCHIATRISTS CANNOT CLAIM MUCH MORE AUTHORITY THAN ANY INFORMED CITIZEN ON HOW TO DEAL WITH THEM WE ARE ALL ACCOUNTABLE FOR DEALING WITH THESE SHARED PROBLEMS AS SOCIAL PROBLEMS THEY CAN BE CURED BUT THE CURES HAVE COSTS THE BETTER THE CURE THE HIGHER THE COST WE CAN ARRANGE FOR THE HOMELESS TO BE OFF OUR STREETS WARM AND CLEAN AND TREATED WITH WHATEVER MEDICATIONS WE HAVE AVAILABLE TEASED AND CAJOLED OUT OF THEIR WALLEDOFF ISOLATION TAKEN CARE OF BY KINDLY DEVOTED CARETAKERS IN SMALL PLEASANTLY LOCATED SETTINGS THEN OUR CONSCIENCES WILL BE CLEAR AND WE CAN FEEL THAT WE ARE A HUMANE AND CIVILIZED SOCIETY BUT CLEAR CONSCIENCES FREE OF SOCIAL GUILT ARE VERY EXPENSIVE HOW MUCH ARE WE WILLING TO PAY THAT IS A SOCIAL AND POLITICAL DECISION NOT A MEDICAL ONE SCHIZOPHRENIA A DISORDER OF THE MIND AND POSSIBLY THE BRAIN CHARACTERIZED BY CHRONIC SOCIAL WITHDRAWAL ILLOGICAL THINKING AND DISREGARD FOR THE EXTERNAL WORLD DR KRAMER A PRACTICING PSYCHIATRIST FOR 35 YEARS IS A PROFESSOR AT THE ROBERT WOOD JOHNSON MEDICAL SCHOOL OF THE UNIVERSITY OF MEDICINE AND DENTISTRY OF NEW JERSEY SEE RELATED ARTICLE A PARENT'S LIMITS WSJ MARCH 9 1994 SEE RELATED LETTERS LETTERS TO THE EDITOR THE RIP VAN WINKLE OF PSYCHIATRY WSJ MARCH 30 1994 9403090012 YY94 MM03 9403300159 940330 TECHNOLOGY CALGENE IS GRANTED PATENT DAVIS CALIF CALGENE INC SAID IT HAS BEEN GRANTED A US PATENT COVERING GENETICALLY ENGINEERED PLANT OILS THE BIOTECHNOLOGY COMPANY SAID THE OILS ARE USED TO PRODUCE A COMPONENT IN THE MANUFACTURE OF MANY SOAP DETERGENT AND OTHER PERSONALCARE PRODUCTS 9403300158 940330 BUSINESS BRIEF WILLIAMSSONOMA INC FISCAL FOURTHQUARTER PROFIT JUMPED 48 TO 114 MILLION WILLIAMSSONOMA INC BOOSTED BY CONTINUED GROWTH IN RETAIL SALES SAID NET INCOME FOR ITS FOURTH QUARTER JUMPED 48 TO 114 MILLION OR 67 CENTS A SHARE FROM 77 MILLION OR 46 CENTS A SHARE A YEAR EARLIER FOR THE PERIOD ENDING JAN 30 THE SAN FRANCISCOBASED KITCHENWARE RETAILER SAID SALES ROSE 26 TO 1627 MILLION FROM 129 MILLION A YEAR EARLIER WILLIAMSONOMA SHARES CLOSED AT 3375 DOWN 25 CENTS IN THE NASDAQ NATIONAL MARKET YESTERDAY NET FOR THE YEAR SOARED TO 112 MILLION OR 66 CENTS A SHARE FROM 18 MILLION OR 11 CENTS A SHARE IN THE PREVIOUS YEAR SALES INCREASED 189 TO 4101 MILLION FROM 3449 MILLION 9403300157 940330 UNIVERSAL FOREST ACQUIRES SLATER GRAND RAPIDS MICH UNIVERSAL FOREST PRODUCTS INC SAID IT ACQUIRED SLATER WOOD PRESERVING INC SLATER MO TERMS WEREN'T DISCLOSED UNIVERSAL FOREST PRODUCTS IS A SUPPLIER OF LUMBER PRODUCTS FOR THE DOITYOURSELF AND MANUFACTUREDHOME MARKETS 9403300156 940330 FARRAGUT LENDERS WAIVE DEFAULT MANSFIELD MASS FARRAGUT MORTGAGE CO SAID ITS LENDERS WAIVED THE COMPANY'S TECHNICAL DEFAULT OF ITS WAREHOUSING LINE OF CREDIT IT ALSO SAID IT HAS BEEN REINSTATED AS A FEDERAL NATIONAL MORTGAGE ASSOCIATION MORTGAGE SERVICER THE CANCELLATION OF THAT STATUS HAD CAUSED THE TECHNICAL DEFAULT FARRAGUT CHAIRMAN AND CHIEF EXECUTIVE STEPHEN H DICKMANN SAID WE BELIEVE THAT WITH THE BANKS' CONTINUED SUPPORT WE CAN CONCENTRATE ON OBTAINING NEW FINANCING IF SUCCESSFUL THIS WILL ALLOW US TO COMPLETE OUR RESTRUCTURING FARRAGUT IS A RESIDENTIAL MORTGAGEBANKING COMPANY 9403300155 940330 TEXAS INSTRUMENTS GETS CONTRACT DALLAS TEXAS INSTRUMENTS INC SAID THAT THE ARMY AWARDED ITS DEFENSE SYSTEMS AND ELECTRONICS GROUP A 579 MILLION CONTRACT TO DEVELOP A THERMALIMAGING AND FIRECONTROL SYSTEM FOR THE MILITARY'S BRADLEY FIGHTING VEHICLE THE SYSTEM WILL ENABLE A GUNNER TO USE AN AUTOMATED TARGETTRACKING DEVICE TO ATTACK LONGERRANGE TARGETS WITH A GREATER PROBABILITY OF A HIT THE DEFENSE AND ELECTRONICS CONCERN SAID TEXAS INSTRUMENTS SAID ITS CONTRACT IS PART OF A 41MONTH PROGRAM TO UPGRADE THE BRADLEY AND INCLUDES HARDWARE AND SOFTWARE DEVELOPMENT THE DELIVERY OF 16 PROTOTYPE SYSTEMS AND THE DEVELOPMENT OF A PILOT PRODUCTION LINE 9403300154 940330 CHRYSLER JOINS THE TOP TEN IN FORTUNE'S TALLY OF SALES NEW YORK CHRYSLER CORP NUDGED INTO THE TOP 10 COMPANIES IN TERMS OF SALES IN FORTUNE MAGAZINE'S LATEST FORTUNE 500 LIST OF INDUSTRIAL COMPANIES THE AUTO MAKER WAS RANKED EIGHTH WITH SALES OF 436 BILLION CHANGING PLACES WITH CHEVRON CORP WHICH DROPPED TO 11TH CHRYSLER WAS LAST RANKED IN THE TOP 10 IN 1989 GENERAL MOTORS CORP LED THE LIST FOR THE EIGHTH CONSECUTIVE YEAR WITH SALES OF 13362 BILLION WHILE FORD MOTOR CO ROSE ONE NOTCH TO SECOND FROM THIRD WITH 10852 BILLION IN SALES SWAPPING PLACES WITH EXXON CORP THE OTHERS IN THE TOP TEN ARE INTERNATIONAL BUSINESS MACHINES CORP FOURTH GENERAL ELECTRIC CO FIFTH MOBIL CORP SIXTH PHILIP MORRIS COS SEVENTH TEXACO INC NINTH AFTER SWITCHING PLACES WITH DUPONT CO TENTH THIS YEAR FORTUNE SAID PROFITS FOR THE 500 COMPANIES TOTALED 626 BILLION LAST YEAR AFTER LOSSES OF 1962 MILLION IN 1992 THE FIRST TIME THE LIST EVER SHOWED A LOSS IN LARGE PART AS A RESULT OF ACCOUNTING CHANGES 9403300153 940330 INTERNATIONAL THORN SELLS UNIT TO WHITTAKER LONDON THORN EMI PLC SAID IT SOLD ITS SYSTRON DONNER SAFETY SYSTEMS DIVISION TO WHITTAKER CORP OF LOS ANGELES FOR 135 MILLION THE DIVISION DESIGNS AND MAKES AIRCRAFT ENGINE FIREDETECTION AND OVERHEATDETECTION SYSTEMS IT HAS ABOUT 190 EMPLOYEES THORN WILL USE THE PROCEEDS TO INVEST IN ITS CONTINUING BUSINESSES 9403300152 940330 TECHNOLOGY PRODIGY AND ESPN ARE TEAMING UP TO PUT PRO SPORTS ONLINE FOR FANS BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT'S THE BOTTOM OF THE NINTH WITH TWO OUT AND THE BASES LOADED SO YOU TURN OFF THE TV SET AND SIT DOWN AT THE COMPUTER TO FIND OUT WHAT'S REALLY HAPPENING THAT AT LEAST IS WHAT PRODIGY SERVICES CO AND ESPN THE CABLE SPORTS NETWORK ARE HOPING AS THE BOYS OF SUMMER TAKE THE DIAMOND AND ONLINE FANS GET ON BASE DATABASE THAT IS TODAY THE TWO COMPANIES ARE EXPECTED TO ANNOUNCE AN EXCLUSIVE PACT TO OFFER ESPN'S SPORTS INFORMATION OVER PRODIGY PROVIDING MORE FACTS AND ENTERTAINMENT THAN PLAIN OLD TELEVISON SPORTS NEWS LOTS OF STATS AND EVEN COLOR COMMENTARY FROM ESPN PERSONALITIES WILL GO TO BAT ON THE NEW SERVICE TO BE CALLED ESPNET EVENTUALLY THE NEW PARTNERS HOPE TO BUILD MULTIMEDIA APPLICATIONS THAT WILL INCLUDE SOUND WITHIN A FEW MONTHS AND THE CROWD ROARS HAAHHHHH AND FULLMOTION VIDEO BY THE END OF THE YEAR TERMS OF THE DEAL WEREN'T DISCLOSED BUT IT IS SAID TO BE ONE OF THE LARGEST THIRDPARTY PACTS TO BE SIGNED BY AN ONLINE SERVICE PRODIGY WILL GET A BOOST BY HAVING ESPN PROMOTE THE SERVICE TO THE ALMOST 63 MILLION HOMES IT REACHES ESPN WILL GET A CUT OF THE SUBSCRIBER FEES THAT SPORTS FANATICS PAY TO GO TO THE VIDEO SCREEN FOR PRODIGY A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO THE DEAL SIGNS UP A COVETED PLAYER IN THE SPORTS BUSINESS ESPN IS THE NATION'S MOST WIDELY CIRCULATED CABLE CHANNEL AND ONE OF THE MOST WATCHED FOR ESPN'S 80OWNER CAPITAL CITIES/ABC INC THE PRODIGY DEAL OFFERS UP A NEW ONLINE PARTNER AS IT EXPLORES MULTIMEDIA IDEAS UNTIL NOW PRODIGY HAS BEEN DOING BUSINESS WITH ABC RIVAL CBS INC THE NEW DEAL ALSO REPRESENTS A NEW AND LESSCONTROLLING APPROACH FOR PRODIGY WHICH HAS YET TO TURN A PROFIT IN ITS SIXYEAR HISTORY IT HAS ALWAYS EXERCISED GREAT CONTROL OVER ONLINE OFFERINGS EVEN TO THE POINT OF HAVING ITS OWN EDITORS REWRITE NEWS STORIES FROM WIRE SERVICES BUT WITH ESPNET AS WELL AS FROM THE RECENTLY ANNOUNCED PACT TO PUT THE ATLANTA JOURNALCONSTITUTION ONLINE PRODIGY IS REACHING OUT TO THIRD PARTIES AND GRANTING THEM MORE SAY WE ARE GROWING UP WHICH MEANS THAT YOU LOOK TO PEOPLE WHO DO THINGS BEST AND YOU EMBRACE THEM SAYS SCOTT KURNIT EXECUTIVE VICE PRESIDENT OF PRODIGY AT ESPN WHICH ALSO IS 20OWNED BY HEARST CORP SENIOR VICE PRESIDENT DICK GLOVER SAID THE NEW SERVICE LETS THE CABLE CHANNEL WADE INTO THE INTERACTIVE AGE AT THE MOMENT THE TECHNOLOGY IS SUCH THAT AN ONLINE SERVICE IS THE FIRST STEP HE SAYS VIEWERS WILL BE ABLE TO GET ACCESS TO THE INFORMATION THEY WANT RATHER THAN TO WHAT THE NETWORK BROADCASTS CURRENTLY SAYS MR GLOVER YOUR ONLY CHOICE IS TO WATCH OR NOT WATCH 9403300151 940330 MARKETING & MEDIA RJR NABISCO UNIT'S PRODUCTS PARSIPPANY NJ NABISCO BISCUIT CO SAID IT IS INTRODUCING REDUCEDFAT VARIETIES OF SEVERAL OF ITS PRODUCTS INCLUDING OREO COOKIES WITH 25 LESS FAT AND RITZ CRACKERS WITH 35 LESS FAT THE UNIT OF RJR NABISCO HOLDINGS CORP ALSO PLANS REDUCEDFAT VERSIONS OF ITS CHIPS AHOY WHEAT THINS TRISCUIT AND BETTER CHEDDARS PRODUCTS 9403300150 940330 WHO'S NEWS MCGRAWHILL INC MCGRAWHILL INC NEW YORK KEVIN MULVANEY 45 YEARS OLD WAS NAMED PRESIDENT OF DRI/MCGRAWHILL THE ECONOMIC ADVISORY AND CONSULTING SERVICES UNIT OF THIS PUBLISHING AND INFORMATION SERVICES COMPANY THOSE DUTIES WERE PREVIOUSLY PERFORMED BY FORMER EXECUTIVE VICE PRESIDENT GEORGE BROWN WHO LEFT THE COMPANY IN JANUARY MR MULVANEY WAS MOST RECENTLY EXECUTIVE VICE PRESIDENT NATIONAL BANKING GROUP AT THE BANK OF BOSTON 9403300149 940330 WHO'S NEWS ENZON INC ENZON INC PISCATAWAY NJ PETER TOMBROS 51 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BIOTECHNOLOGY COMPANY MR TOMBROS SUCCEEDS ABRAHAM ABUCHOWSKI 45 WHO CONTINUES AS CHAIRMAN MR TOMBROS WAS PREVIOUSLY VICE PRESIDENT CORPORATE STRATEGY PLANNING AT PHARMACEUTICAL AND HEALTHCARE COMPANY PFIZER INC 9403300148 940330 MARKETING & MEDIA SFX TO BUY RADIO STATION NEW YORK SFX BROADCASTING INC SAID IT AGREED TO ACQUIRE RADIO STATION KYXYFM IN SAN DIEGO FROM PARKER BROADCASTING INC FOR 14 MILLION IN CASH AND STOCK AS WELL AS 3 MILLION FOR A REAL ESTATE PROPERTY 9403300147 940330 MAGMA COPPER TO SELL SECURITIES TUCSON ARIZ MAGMA COPPER CO SAID IT INTENDS TO REGISTER WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL FROM TIME TO TIME UP TO 300 MILLION IN DEBT OR EQUITY SECURITIES THE COPPER PRODUCER SAID THE MOST LIKELY USE FOR THE PROCEEDS FROM ANY OFFERING WOULD BE TO REFINANCE DEBT MAGMA ALSO REGISTERED A PREVIOUSLY ANNOUNCED PLAN BY WARBURG PINCUS CAPITAL CO TO SELL 33 MILLION SHARES OF COMMON STOCK INCLUDING ONE MILLION SHARES TO BE CONVERTED FROM WARRANTS HELD BY WARBURG THE SALE WILL LEAVE WARBURG AN AFFILIATE OF INVESTMENT FIRM EM WARBURG PINCUS & CO WITH A 36 FULLY DILUTED STAKE IN MAGMA 9403300146 940330 WORLD MARKETS TOKYO STOCKS TUMBLE 12 AS YEN REBOUNDS LONDON SHARES EASE ON BOND FUTURES LOSSES A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SLUMPED 12 ON TUESDAY UNDER THE RENEWED STRENGTH OF THE YEN WHICH DROVE DOWN EXPORTLINKED ISSUES LONDON SHARES FELL SLIGHTLY DRAGGED LOWER BY LOSSES IN THE BRITISH BOND AND FUTURES MARKETS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11346 DOWN 096 REFLECTING LOWER MARKETS IN ALL REGIONS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 19013 UP 409 OR 22 WITH UNITED PLANTATIONS OF MALAYSIA POSTING A 76 GAIN IN ITS LOCAL CURRENCY APPAREL RETAILERS STOCKS TRAILED AT 9354 DOWN 298 OR 31 WITH GAP OF THE US SLIDING 68 IN LOCAL CURRENCY THE NIKKEI 225STOCK INDEX WHICH ADVANCED 11531 POINTS ON MONDAY SKIDDED 23205 TO 1970974 CLOSING NEAR THE DAY'S LOW IN TRADING WEDNESDAY IN TOKYO THE NIKKEI INDEX SANK 29526 POINTS TO CLOSE THE MORNING SESSION AT 1941448 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 260 MILLION SHARES COMPARED WITH 254 MILLION SHARES A DAY EARLIER LOSERS TROUNCED GAINERS 693328 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION SHARES WHICH ROSE 249 POINTS ON MONDAY SLID 1633 OR 1 TO 159651 THE YEN'S RAPID APPRECIATION WAS DRIVEN BY DISAPPOINTMENT ABOUT THE PACKAGE OF DEREGULATORY AND MARKETOPENING MEASURES THAT THE JAPANESE GOVERNMENT ANNOUNCED TUESDAY MORNING WHILE STOCKMARKET INVESTORS DIDN'T REACT DIRECTLY TO NEWS OF THE PACKAGE THEY TOOK PROFITS ON HIGHFLYING EXPORTORIENTED MULTIMEDIA SHARES GIVEN THE YEN'S RISE A STRONG YEN EATS INTO EXPORTERS' PROFITS FROM ABROAD THE STRENGTHENING YEN ALSO CAUSED INDEX FUTURES TO SOFTEN TRIGGERING ARBITRAGE SELLING OF EQUITIES THE NIKKEI PEAKED AT 1996919 IN THE SESSION'S FIRST 20 MINUTES AND SANK AS LOW AS 1965303 JUST BEFORE THE CLOSE INVESTORS POSTPONED AGGRESSIVE BUYING PARTLY BECAUSE OF CONCERNS ABOUT WHAT IS AHEAD FOR OVERSEAS STOCK AND CURRENCY MARKETS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100STOCK INDEX FELL 61 POINTS TO 31234 THE FT 30STOCK INDEX TUMBLED 95 POINTS TO 24701 VOLUME WAS 6738 MILLION SHARES COMPARED WITH 5059 MILLION SHARES A DAY EARLIER INVESTORS LOOKING FOR DIRECTION WERE RELUCTANT TO ACQUIRE NEW HOLDINGS AHEAD OF THE FISCAL YEAR ENDING TOMORROW CONTINUING UNCERTAINTY ABOUT US AND BRITISH INTEREST RATES COMPOUNDED THE NEGATIVE SENTIMENT THAT STEMMED FROM DECLINES IN BRITISH GOVERNMENT BONDS AND WEAKNESS IN STERLING IN FRANKFURT PRICES ADVANCED SLIGHTLY AS TRADING EMPHASIS SHIFTED FROM CYCLICAL SECTORS SUCH AS CHEMICALS AND AUTOMOBILES TO FINANCIAL ISSUES SUCH AS BANKS AND INSURANCE COMPANIES THE DAX 30STOCK INDEX ROSE 693 POINTS TO 216835 CYCLICAL ISSUES WHICH INVESTORS HAVE STRONGLY FAVORED RECENTLY NOW APPEAR TO BE OVERBOUGHT IN PARIS STOCKS FELL SHARPLY IN THIN TRADING RESUMING THEIR DECLINE AFTER MONDAY'S SHORTLIVED TECHNICAL RESPITE A WEAK OPENING ON WALL STREET CONTRIBUTED TO THE DECLINE IN AMSTERDAM SHARES WERE BROADLY MIXED TO LOWER AS DUTCH AND GERMAN BOND PRICES FAILED TO HOLD ON TO EARLY GAINS THE WEAKER DOLLAR AND THE SOFT OPENING ON WALL STREET ALSO WEIGHED ON SENTIMENT IN MILAN SHARES INCLUDING THOSE TRADED ELECTRONICALLY SANK 19 ON PROFITTAKING AND CONCERNS ABOUT THE VICTORY IN ITALIAN GENERAL ELECTIONS BY A COALITION OF RIGHTWING REGIONAL SEPARATIST AND NEOFASCIST PARTIES INVESTORS WERE SKEPTICAL THAT THE DISPARATE COALITION WOULD BE ABLE TO FORM A COHESIVE GOVERNMENT IN MADRID STOCKS TUMBLED FOR THE THIRD STRAIGHT SESSION INVESTORS FRETTED ABOUT EARLY DECLINES ON WALL STREET AND CONTINUING WORRIES ABOUT THE BOND MARKET IN STOCKHOLM PRICES SKIDDED 13 IN THIN TRADING THE MARKET'S 10TH CONSECUTIVE DECLINE INVESTORS WERE PUT OFF BY RISING YIELDS ON SWEDISH BONDS IN ZURICH EQUITIES FELL 12 IN LIGHT TRADING BUYING INTEREST WAS SCARCE AHEAD OF THE LONG EASTER WEEKEND IN MEXICO CITY STOCKS ROSE THE MARKET OPENED SHARPLY LOWER BUT RECOVERED WHEN MEXICO'S GOVERNING PARTY CHOSE ERNESTO ZEDILLO PONCE DE LEON CAMPAIGN MANAGER OF SLAIN PRESIDENTIAL CONTENDER LUIS DONALDO COLOSIO AS ITS NEW CANDIDATE IN SYDNEY PRICES FELL FOR A FOURTH CONSECUTIVE TRADING SESSION REFLECTING NERVOUSNESS IN OVERSEAS BOND AND EQUITIES MARKETS INVESTORS STAYED ON THE SIDELINES AHEAD OF A NEW BUDGET FOR THE AUSTRALIAN GOVERNMENT IN HONG KONG SHARES ROCKETED 31 ON A LATE SURGE IN FUTURES PRICES A REBOUND BY BANK STOCKS AND OTHER SELECTIVE BUYING IN SINGAPORE STOCKS JUMPED 16 ON THIN VOLUME INVESTOR SENTIMENT REMAINED WEAK BUT A LACK OF BEARISH NEWS DAMPED SELLING IN KUALA LUMPUR EQUITIES SURGED 11 REBOUNDING FROM RECENT LOSSES AS INVESTORS HUNTED FOR BARGAINS IN SEOUL STOCKS FELL ON PROFITTAKING AFTER SHARP GAINS IN THE PREVIOUS SESSION IN MANILA SHARES ROSE FOR THE THIRD STRAIGHT DAY ON MODERATE VOLUME BOOSTED BY EXPECTATIONS OF GOOD CORPORATE EARNINGS FOR THE FIRST QUARTER IN WELLINGTON EQUITIES SLIPPED AS WEAKNESS IN AUSTRALIAN PRICES FILTERED THROUGH IN LATE TRADING IN BANGKOK SHARES ROSE DESPITE POOR MARKET SENTIMENT AND CONCERNS BY INVESTORS ABOUT A THAI POLITICAL DISPUTE OVER CONSTITUTIONAL AMENDMENTS 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 9403300145 940330 TECHNOLOGY NORTHERN TELECOM BELL CANADA END SUPPLIER ACCORD BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL IN A MOVE THAT APPEARS TO HAVE REMOVED A USCANADA TRADE IRRITANT BELL CANADA AND NORTHERN TELECOM LTD AGREED TO ELIMINATE A LONGSTANDING PREFERREDSUPPLIER ARRANGEMENT BETWEEN THE TWO CANADIAN COMPANIES US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE CHANGE WILL GIVE US TELECOMMUNICATIONSEQUIPMENT MAKERS NEW OPPORTUNITIES TO EXPORT TO CANADA IN RETURN THE OFFICE OF THE TRADE REPRESENTATIVE WILL DROP REFERENCES TO THE SUPPLY RELATIONSHIP FROM AN ANNUAL REPORT ON FOREIGN TRADE BARRIERS MAKING NORTHERN TELECOM'S US SUBSIDIARY ELIGIBLE FOR EXPORT SUPPORT FROM THE US COMMERCE AND STATE DEPARTMENTS UNDER AN AGREEMENT DATING BACK TO 1939 BELL CANADA A UNIT OF MONTREALBASED BCE INC HAS ALLOWED NORTHERN TELECOM TO MAKE THE FIRST PROPOSAL TO SUPPLY MUCH OF ITS EQUIPMENT NORTHERN TELECOM BASED IN TORONTO IS 52OWNED BY BCE IF NORTHERN TELECOM'S PROPOSAL MET THE SPECIFICATIONS BELL CANADA THE COUNTRY'S BIGGEST TELEPHONE COMPANY COULD ACCEPT IT WITHOUT SEEKING OTHER BIDS AS LONG AS THE PRICE WAS AS LOW AS THAT OFFERED TO ANY OTHER CANADIAN TELEPHONE COMPANY NOW BELL CANADA WILL PUT NEW PRODUCTS AND SERVICES OUT TO COMPETITIVE BIDDING AND NORTHERN WILL COMPETE LIKE ANY OTHER SUPPLIER SAID DIANE CHABOT BELL CANADA'S GROUP VICE PRESIDENTLOGISTICS THE ARRANGEMENT WON'T NECESSARILY AFFECT SUPPLY ARRANGEMENTS FOR EQUIPMENT ALREADY IN BELL CANADA'S INSTALLED BASE A NORTHERN TELECOM SPOKESMAN SAID THE COMPANY IS ABSOLUTELY DELIGHTED WITH THE NEW ARRANGEMENT BECAUSE IT BELIEVES SUPPORT FROM THE US GOVERNMENT IS CRUCIAL TO ITS EFFORTS TO EXPORT FROM ITS US FACTORIES ABOUT 29 OF NORTHERN TELECOM'S 8 BILLION IN ANNUAL REVENUE COMES FROM OUTSIDE NORTH AMERICA AND THAT PROPORTION COULD GROW SIGNIFICANTLY THROUGH SALES TO SUCH FASTGROWING MARKETS SUCH AS CHINA MEXICO AND BRAZIL SAID THE SPOKESMAN ROBERT O'BRIEN THE EXPORTSUPPORT PROGRAM INVOLVES REPRESENTATIONS OF BEHALF OF USBASED COMPANIES BY US DIPLOMATS AND COMMERCIAL OFFICERS OVERSEAS AMERICAN TELEPHONE & TELEGRAPH CO WHICH HAS BEEN LOBBYING THE US GOVERNMENT TO PULL ITS COMMERCIAL SUPPORT OF NORTHERN'S US BUSINESS IN FOREIGN MARKETS CALLED YESTERDAY'S DEVELOPMENTS A MAJOR BREAKTHROUGH 9403300144 940330 BOW VALLEY STAKE UNDER REVIEW CALGARY ALBERTA BOW VALLEY ENERGY INC SAID ITS PARENT BRITISH GAS PLC IS REVIEWING ITS 53 OWNERSHIP OF THE COMPANY AS PART OF A MORE GENERAL REVIEW OF ITS INTERNATIONAL INVESTMENTS THE CALGARY OIL AND NATURAL GAS PRODUCER SAID IT AGREED TO PROVIDE CONFIDENTIAL INFORMATION TO BRITISH GAS AND CERTAIN THIRD PARTIES TO FACILITATE THE REVIEW IT SAID THE UK ENERGY COMPANY HAS INFORMED BOW VALLEY THAT IT HASN'T MADE A DECISION ON WHETHER TO DISPOSE OF ITS INVESTMENT 9403300143 940330 ABREAST OF THE MARKET STOCKS CONTINUE TO DROP FALLING 6333 AMID STEEP BOND SELLOFF BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS TUMBLED FOR A THIRD TIME IN FOUR SESSIONS PUSHING THE DOW JONES INDUSTRIAL AVERAGE UNDER 3700 FOR THE FIRST TIME SINCE DECEMBER A STEEP SELLOFF IN BONDS AFTER SEVERAL IMPROVED READINGS ON THE ECONOMY TRIGGERED THE STOCKMARKET SLIDE THE SELLING INTENSIFIED LATE YESTERDAY LEAVING THE DOW INDUSTRIALS WITH A LOSS OF 6333 OR 168 TO 369902 IT WAS THE BIGGEST ONEDAY DROP SINCE FEB 4 WHEN THE DOW LOST 96 POINTS THE TREASURY'S 30YEAR BOND LOST MORE THAN A POINT PUSHING ITS YIELD BACK OVER THE 7 MARK TO 706 ALTHOUGH STOCKS WERE WEAK ALL DAY WITH THE DOW JONES INDUSTRIALS OFF MORE THAN 40 AT MIDDAY TRADERS SAID IT WAS A LATE BURST OF SELLING IN THE STOCKINDEXFUTURES MARKET THAT CARRIED MARKET INDEXES TO THEIR CLOSING LOWS THE NASDAQ COMPOSITE INDEX MEANWHILE PLUNGED 1721 OR 223 TO 75529 THE INDEX WHICH SET A RECORD LESS THAN TWO WEEKS AGO IS NOW AT ITS LOWEST LEVEL SINCE DEC 15 IT LOST 1095 MONDAY THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX TUMBLED 778 OR 168 TO 45443 SELLING IN COMPUTERRELATED ISSUES ESPECIALLY THOSE OF SOFTWARE DEVELOPERS HELPED DEPRESS THE NASDAQ STOCK MARKET WHICH IS HEAVILY WEIGHTED IN THOSE TYPES OF ISSUES MICROSOFT LOST 3 7/8 TO 82 1/2 LOTUS DEVELOPMENT SLUMPED 3 1/4 TO 70 BMC SOFTWARE DECLINED 2 3/8 TO 60 3/4 AND LEGENT LOST 2 5/8 TO 25 3/4 ALL ON NASDAQ ON THE BIG BOARD COMPUTER ASSOCIATES FELL 7/8 TO 32 AMONG CYCLICALS CATERPILLAR DROPPED 3 1/8 TO 110 7/8 DEERE LOST 3 3/4 TO 81 3/4 GENERAL MOTORS DECLINED 1 3/8 TO 56 CHRYSLER SHED 2 1/4 TO 52 1/8 AND DUPONT SKIDDED 2 3/8 TO 54 1/2 THE MORGAN STANLEY CYCLICAL INDEX LOST 805 OR 260 TO 30144 SINCE WEDNESDAY THAT INDEX IS DOWN 503 UTILITY STOCKS PLUNGED AGAIN THE DOW JONES UTILITIES AVERAGE LOST 421 OR 205 TO 20123 ANOTHER IN A STRING OF 23MONTH LOWS GRUMMAN LOST 1 1/2 TO 63 3/8 NORTHROP DROPPED 1 7/8 TO 40 7/8 AND MARTIN MARIETTA SLIPPED 7/8 TO 45 1/8 NORTHROP OF LOS ANGELES SAID THAT RULES GRUMMAN ESTABLISHED MONDAY FOR ACQUISITION OFFERS WERE UNFAIR BOTH NORTHROP AND MARTIN MARIETTA OF BETHESDA MD HAVE OFFERED TO PURCHASE THE BETHPAGE NY AEROSPACE CONCERN AMERICAN DEPOSITARY RECEIPTS OF MANY MEXICAN COMPANIES SLIPPED GRUPO CASA AUTREY A DRUG DISTRIBUTOR LOST 1 1/2 TO 25 1/2 GRUPO TELEVISA A BROADCASTER DROPPED 1 7/8 TO 52 3/4 GRUPO TRIBASA A CONSTRUCTION COMPANY SKIDDED 2 1/8 TO 26 1/2 AND TELEFONOS DE MEXICO A TELEPHONE SERVICE ISSUE EASED 3/4 TO 59 7/8 GRUPO EMBOTELLADOR DE MEXICO A BOTTLER OF PEPSICO PRODUCTS SLIPPED TO 29 1/2 IT HAD AN OFFERING OF 45 MILLION DEPOSITARY SHARES YESTERDAY PRICED AT 31 EACH THE OFFERING SIZE HAD BEEN CUT ALZA ADDED 7/8 TO 23 3/8 THE PALO ALTO CALIF COMPANY SAID IT AND PROCTER & GAMBLE WILL JOINTLY MARKET ACTISITE PERIODONTAL FIBER IN THE US THE PRODUCT WHICH ALREADY IS SOLD BY ALZA IN ITALY IS DESIGNED FOR USE IN TREATMENT OF SOME FORMS OF GUM DISEASES SHARES OF CINCINNATIBASED P&G SLIPPED 3/4 TO 53 1/2 CAPITAL CITIES/ABC EASED 4 5/8 TO 698 1/8 WHILE VIACOM'S CLASS B SHARES WERE UNCHANGED AT 27 3/4 ON THE AMEX CAPITAL CITIES AND CLOSELY HELD HEARST SAID THEY AGREED TO BUY VIACOM'S ONETHIRD INTEREST IN THE LIFETIME CABLETELEVISION NETWORK FOR 3176 MILLION CASH CAPITAL CITIES AND HEARST EACH ALREADY OWN ONETHIRD STAKES IN THE NETWORK SCHLUMBERGER LOST 2 TO 53 AFTER MERRILL LYNCH ANALYST KEVIN SIMPSON LOWERED HIS SHORTTERM RATING ON SHARES OF THE OILFIELDSERVICES CONCERN TO NEUTRAL FROM BUY HE CITED CONCERN ABOUT FALLING CRUDEOIL PRICES SCHLUMBERGER WAS AMONG STOCKS BATTERED MONDAY BY A SELLOFF IN THE OIL MARKET OIL FUTURES BOUNCED BACK SOMEWHAT YESTERDAY BUT MANY PETROLEUMRELATED STOCKS REMAINED WEAK CHEVRON LOST 1 TO 87 1/4 TEXACO FELL 3/8 TO 64 3/8 AND PENNZOIL SLIPPED 1 3/8 TO 51 1/8 EXXON THOUGH WAS UNCHANGED AT 65 AG EDWARDS & SONS EASED 5/8 TO 18 3/4 AFTER THE ST LOUIS BROKERAGE COMPANY REPORTED FOURTHQUARTER EARNINGS OF 66 CENTS A SHARE THAT WAS UP FROM 63 CENTS A YEAR AGO BUT DOWN FROM THE 67 CENTS IT EARNED IN THE THIRD QUARTER OTHER SECURITIESBROKERAGE FIRMS WERE DOWN MERRILL LYNCH EASED 1 3/8 TO 37 3/4 MORGAN STANLEY LOST 1 3/8 TO 65 3/8 AND CHARLES SCHWAB FELL 1 5/8 TO 27 3/4 INTERNATIONAL FAMILY ENTERTAINMENT DROPPED 1 3/8 TO 16 7/8 THE VIRGINIA BEACH VA CABLETELEVISION NETWORK OPERATOR SAID ITS FOURTHQUARTER EARNINGS EXCLUDING A CHARGE FELL TO THREE CENTS A SHARE THE COMPANY WHICH WAS FOUNDED BY RELIGIOUS BROADCASTER PAT ROBERTSON HAD NET INCOME OF 14 CENTS A SHARE IN THE YEAREARLIER PERIOD TIMOTHY HEEKIN HEAD OF BLOCK TRADING AT SALOMON BROTHERS SPECULATED THAT BEARISH INVESTORS SOLD STOCK FUTURES LATE IN THE DAY AS A WAY TO QUICKLY REDUCE THEIR EXPOSURE TO EQUITIES TRADERS SAID THEY COULDN'T ATTRIBUTE THE LATE PLUNGE TO ANY NEWS DEVELOPMENTS BUT THE NEGATIVE TONE GOT STRONGER IN THE FINAL HOUR OF TRADING AS DEAN WITTER REYNOLDS BECAME THE SECOND MAJOR BROKERAGE FIRM YESTERDAY TO RECOMMEND THAT CLIENTS CUT THEIR EXPOSURE TO STOCKS AND BONDS AND RAISE THEIR CASH HOLDINGS DEAN WITTER RECOMMENDED INVESTORS CUT THEIR STOCK HOLDINGS TO 50 OF THEIR PORTFOLIOS FROM 60 AND REDUCE THEIR BOND EXPOSURE TO 25 FROM 35 SENSING THAT MARKET INTEREST RATES WON'T HEAD LOWER ANYTIME SOON MARKET STRATEGIST WILLIAM DODGE SUGGESTED CLIENTS INCREASE THEIR CASH POSITIONS TO 25 FROM 5 SMITH BARNEY SHEARSON MADE SIMILAR RECOMMENDATIONS EARLY YESTERDAY CUTTING ITS RECOMMENDED STOCK ALLOCATION TO 50 FROM 55 TRIMMING BONDS TO 25 FROM 30 AND LIFTING CASH TO 25 FROM 15 WILLIAM HELMAN COCHAIRMAN OF THE FIRM'S INVESTMENT POLICY COMMITTEE ALSO CITED RISING RATES IN WARNING THAT STOCKS COULD FALL 11 FROM THEIR HIGHS BEFORE THE SELLING IS OVER 9403300142 940330 INTERNATIONAL SPANISH TRADE DEFICIT MADRID SPAIN'S MERCHANDISE TRADE DEFICIT ON A CUSTOMS BASIS SHRANK 32 TO 13610 BILLION PESETAS 9897 MILLION IN FEBRUARY FROM THE SAME MONTH OF 1993 THE FINANCE MINISTRY SAID IMPORTS IN FEBRUARY CLIMBED 37 FROM FEBRUARY 1993 TO 91910 BILLION PESETAS WHILE EXPORTS SURGED 48 TO 78290 BILLION PESETAS 9403300141 940330 WHO'S NEWS WORLD COLOR PRESS INC WORLD COLOR PRESS INC NEW YORK MW MAX HARRIS 39 YEARS OLD WAS PROMOTED TO EXECUTIVE VICE PRESIDENT MANUFACTURING A NEW POSITION AT THIS PRINTING CONCERN WORLD COLOR IS OWNED BY A LIMITED PARTNERSHIP CONTROLLED BY KOHLBERG KRAVIS ROBERTS & CO 9403300140 940330 DIVIDEND NEWS ADVANCED MEDICAL INC ADVANCED MEDICAL INC SAID IT OMITTED ITS 50CENTSASHARE SEMIANNUAL DIVIDEND ON ITS 10 CUMULATIVE PREFERRED STOCK AND DELAYED THE PLANNED REDEMPTION OF THE SERIES' 400000 OUTSTANDING SHARES ADVANCED MEDICAL A SAN DIEGOBASED MAKER OF INTRAVENOUSINFUSION EQUIPMENT SAID THE DIVIDEND PAYMENT AND REDEMPTION WOULD HAVE LED TO THE VIOLATION OF LOAN AGREEMENTS WITH ITS SENIOR LENDER NEGOTIATIONS TO REFINANCE THE COMPANY'S NONPUBLIC DEBT ARE CONTINUING AND WE CHOSE TO DELAY PAYMENTS ON THE PREFERRED STOCK TO ENHANCE THE COMPANY'S ABILITY TO MEET SCHEDULED DEBT COMMITMENTS AND TO CONSERVE CASH DURING THIS CRITICAL PHASE WE DO NOT EXPECT TO MAKE ANY FURTHER PAYMENTS ON THE PREFERRED STOCK UNTIL THE DEBT RESTRUCTURING IS COMPLETED JOSEPH W KUHN VICE PRESIDENT SAID 9403300139 940330 ECONOMY CONFIDENCE IN THE ECONOMY SURGED IN MARCH CONSUMERS ARE ALSO UPBEAT ABOUT COMING MONTHS NEWHOME SALES RISE BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMER CONFIDENCE IN THE ECONOMY SURGED IN MARCH TO THE HIGHEST LEVEL IN NEARLY FOUR YEARS AND CONSUMERS INDICATED THEY FEEL EVEN MORE OPTIMISTIC ABOUT THE MONTHS TO COME SEPARATELY THE COMMERCE DEPARTMENT REPORTED THAT NEWHOME SALES ROSE 19 IN FEBRUARY THE CONFERENCE BOARD SAID ITS CLOSELY WATCHED INDEX OF CONSUMER CONFIDENCE ROSE TO 867 IN MARCH UP NEARLY SEVEN POINTS FROM A REVISED 799 IN FEBRUARY AND THE HIGHEST READING SINCE JULY 1990 A SURVEY OF 5000 HOUSEHOLDS CONDUCTED FOR THE ECONOMIC RESEARCH ORGANIZATION BY NATIONAL FAMILY OPINION SHOWED THAT CONSUMER EXPECTATIONS FOR THE NEXT SIX MONTHS ROSE AS WELL TO 930 POINTS FROM 844 IN FEBRUARY THIS IS A NICE STURDY INCREASE SAID FABIAN LINDEN EXECUTIVE DIRECTOR OF THE CONFERENCE BOARD'S CONSUMER RESEARCH CENTER IN NEW YORK CONSUMERS ARE FEELING REASONABLY SECURE AND PROSPEROUS HE SAID AND IN THE MOOD TO MAKE PURCHASES THEY MAY HAVE PUT OFF IN THE PAST CONSUMER SPENDING REPRESENTS ABOUT TWOTHIRDS OF ECONOMIC ACTIVITY THE POSITIVE SENTIMENT IS IMPORTANT PARTICULARLY DURING A PERIOD WHEN INTEREST RATES HAVE CREPT UP AND THE BOND MARKETS HAVE SHOWN SIGNS OF WORRY ABOUT INFLATION INDEED NEWS OF THE CONSUMER CONFIDENCE REPORT CAUSED BOND PRICES TO TUMBLE YESTERDAY WHICH IN TURN PULLED STOCK PRICES SHARPLY LOWER YIELDS ON THE 30YEAR TREASURY BOND ROSE TO 706 THE HIGHEST LEVELS IN MORE THAN A YEAR THE DOW JONES INDUSTRIAL AVERAGE PLUNGED 6333 POINTS OR 168 TO 369902 THE REPORT ALSO INDICATES AMERICANS CONTINUE TO WORRY ABOUT JOB PROSPECTS THE WEAKEST LEG OF THE CURRENT RECOVERY IN THE MARCH SURVEY 33 OF RESPONDENTS REPORTED THAT JOBS ARE HARD TO GET COMPARED WITH 132 WHO RESPONDED THAT JOBS ARE PLENTIFUL THE MARCH SURVEY ALSO SHOWED THAT RESPONDENTS WERE MORE WORRIED ABOUT JOBS THAN THEY WERE IN THE FEBRUARY SURVEY MEANWHILE SALES OF NEW HOMES ROSE LAST MONTH TO A SEASONALLY ADJUSTED ANNUAL RATE OF 649000 FROM THE REVISED ANNUAL RATE OF 637000 IN JANUARY THE COMMERCE DEPARTMENT SAID THE FIGURES ARE SUBJECT TO LARGE REVISIONS THE 19 REBOUND FOLLOWED A JANUARY DECLINE OF 225 WHICH WAS ATTRIBUTED TO BAD WEATHER AND UNSUSTAINABLY HIGH DECEMBER SALES THE JANUARY REPORT REVISED FROM AN ORIGINAL 201 DECLINE WAS THE STEEPEST PLUNGE SINCE THE GOVERNMENT BEGAN TRACKING NEWHOME SALES IN 1963 ECONOMISTS FRETTED THAT WHILE TEMPERATURES HAVE INCREASED ALLOWING BUILDERS TO RESUME CONSTRUCTION INTEREST RATES HAVE CLIMBED TOO RISING INTEREST RATES COULD EVENTUALLY CAUSE HOME SALES TO SLOW RATES ARE WELL ABOVE WHAT WE HAD BEEN EXPECTING SAID DAVID SEIDERS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS LAST YEAR LOW INTEREST RATES AND WEAK HOME PRICES COMBINED TO SPUR LONGTIME RENTERS INTO THE HOUSING MARKET IF RATES CONTINUE THEIR CLIMB MR SEIDERS SAID HE MAY SHAVE 50000 OFF HIS FORECAST FOR 700000 NEW SINGLEFAMILY HOME SALES THIS YEAR THE WEST WHICH HAS SEEN A DEEP REALESTATE SLUMP REPORTED A 28 INCREASE IN NEWHOME SALES THE BEST REGIONAL SHOWING SALES OF SINGLEFAMILY HOMES FELL ELSEWHERE BY 106 IN THE NORTHEAST BY 102 IN THE MIDWEST AND BY 58 IN THE SOUTH ACTUAL SALES OF NEW SINGLEFAMILY HOMES FOR THE FIRST TWO MONTHS OF 1994 TOTALED 100000 UP 64 FROM 94000 A YEAR EARLIER A BRIGHT SPOT FOR HOME SALES MR SEIDERS POINTED OUT IS A TAX CHANGE ANNOUNCED BY THE INTERNAL REVENUE SERVICE THIS WEEK BUYERS OF HOMES MAY NOW DEDUCT FROM THEIR INCOME TAXES THE MORTGAGE FEES OR POINTS PAID ON THEIR BEHALFS BY SELLERS THE SELLER MAY ALSO CONTINUE TO DEDUCT THE POINTS AS UNDER PREVIOUS RULES THIS IS A GOODIE SAID MR SEIDERS BUYERS CAN DEDUCT THE WHOLE WORKS THE RULE CHANGE IS RETROACTIVE TO HOME SALES AFTER DEC 31 1990 THE HITCH WHEN A HOME IS RESOLD THE BUYER'S INVESTMENT IN THE PROPERTY IS REDUCED BY THE AMOUNT OF THE POINTS DEDUCTION INCREASING THE CAPITALGAINS TAX ON THE SALE 9403300138 940330 WANG LABS' BIGGEST HOLDER LOWELL MASS WANG LABORATORIES INC SAID THAT FUNDS MANAGED BY INVESTOR LEON COOPERMAN HAVE BECOME ITS BIGGEST SHAREHOLDER THE FUNDS EXCHANGED BONDS ACQUIRED WHILE WANG WAS IN CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS FOR ABOUT THREE MILLION SHARES EQUAL TO A 97 STAKE MR COOPERMAN DISCLOSED THE SIZE OF THE STAKE IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION WANG EMERGED FROM BANKRUPTCYCOURT PROTECTION LAST SEPTEMBER AS A PROVIDER OF SOFTWARE AND COMPUTER SERVICES HAVING CLOSED MOST OF ITS MANUFACTURING OPERATIONS IT SAID THERE AREN'T ANY OTHER INVESTORS WITH MORE THAN A 5 STAKE 9403300137 940330 INTERNATIONAL DELTA AIR REACHES MARKETING AGREEMENT WITH AUSTRIAN CARRIER VIENNA DELTA AIR LINES SIGNED A PRELIMINARY AGREEMENT WITH AUSTRIAN AIRLINES TO FORM A MARKETING LINK ON THE NEW YORKVIENNA ROUTE STARTING THIS SUMMER THE TWO AIRLINES PLAN A CODESHARING DEAL THAT WILL ALLOW BOTH AIRLINES TO DESIGNATE THEIR OWN FLIGHT NUMBERS TO THE SAME FLIGHT AUSTRIAN AIRLINES WHICH FLIES DAILY BETWEEN NEW YORK AND VIENNA WILL CONTINUE TO USE ITS AIRCRAFT WITH DELTA BUYING A PORTION OF THE CAPACITY DELTA PREVIOUSLY ANNOUNCED IT INTENDS TO STOP FLYING THE ROUTE DIRECTLY BOTH THE AUSTRIAN AND US GOVERNMENTS MUST APPROVE THE DEAL THE AGREEMENT IS THE LATEST IN A SERIES OF MARKETING ARRANGEMENTS SIGNED BY BOTH CARRIERS DELTA IS ACTIVELY SEEKING PARTNERSHIPS TO HELP IT SLASH ITS TRANSATLANTIC CAPACITY BY 12 AND STEM LOSSES ON THOSE ROUTES THE ATLANTABASED AIRLINE ALREADY HAS SIMILAR MARKETING LINKS WITH BELGIUM'S SABENA AND HUNGARY'S MALEV AIRLINES SINCE SPENDING MORE THAN 500 MILLION IN 1991 FOR PAN AM'S EXTENSIVE EUROPEAN ROUTE NETWORK DELTA HAS STRUGGLED TO MAKE A PROFIT FROM ITS INVESTMENT SEPARATELY AMR CORP'S AMERICAN AIRLINES IS IN TALKS WITH LOT POLISH AIRLINES ON A CODESHARING ARRANGEMENT WHICH WOULD ALLOW LOT TO FLY TO THE US AND GAIN ACCESS TO AMERICAN'S EXTENSIVE ROUTE NETWORK AND LET AMERICAN FUNNEL PASSENGERS TO EASTERN EUROPE AN AMERICAN SPOKESMAN WOULDN'T COMMENT ON TALKS WITH LOT SAYING ONLY THAT WE TALK TO A LOT OF PEOPLE ABOUT A LOT OF THINGS ALL THE TIME 9403300136 940330 INTERNATIONAL BMW EXPECTS HONDA TO REMAIN PARTNER IN ROVER OPERATION SPECIAL TO THE WALL STREET JOURNAL MUNICH GERMANY THE CHAIRMAN OF GERMAN LUXURY CAR MAKER BAYERISCHE MOTOREN WERKE AG SAID HE EXPECTS INCREASED 1994 SALES AND EARNINGS AND EXPRESSED OPTIMISM THAT JAPAN'S HONDA MOTOR CO WON'T ABRUPTLY ABANDON ITS PRODUCTSHARING PARTNERSHIP WITH BRITAIN'S ROVER CARS OPERATION ONCE BMW ASSUMES CONTROL BMW AGREED IN LATE JANUARY TO ACQUIRE BRITAIN'S ROVER GROUP FROM BRITISH AEROSPACE PLC INCLUDING AN 80 STAKE IN ROVER CARS OF BRITAIN BMW'S OFFER BLINDSIDED HONDA WHICH HOLDS THE OTHER 20 OF ROVER CARS AND LED THE JAPANESE AUTO MAKER TO DECLARE IT WOULD UNWIND ITS STAKE IN ROVER AND REVIEW AGREEMENTS TO PROVIDE THE BRITISH AUTO MAKER WITH CRUCIAL VEHICLE DESIGNS ENGINE TECHNOLOGY AND MANUFACTURING KNOWHOW NOW AFTER TWO MONTHS OF TALKS BMW CHAIRMAN BERND PISCHETSRIEDER SAID HONDA APPEARS WILLING TO CONTINUE EXISTING PRODUCT AND TECHNOLOGYSHARING ARRANGEMENTS WITH ROVER AT LEAST FOR THE REMAINING LIFESPAN OF THE CURRENT ROVER 200 400 AND 600 SERIES MODELS THOSE CARS ARE BASED MAINLY ON HONDA TECHNOLOGY WE ASSUME THAT THE HONDAROVER RELATIONSHIP WILL CONTINUE MR PISCHETSRIEDER SAID CAUTIONING THAT NO NEW CONTRACTS HAVE BEEN SIGNED HONDA OFFICIALS HAVE EXPRESSED RELUCTANCE TO BE PARTNERS WITH A COMPANY THAT IS A FIERCE RIVAL IN EVERY MAJOR WORLD MARKET BY PULLING OUT OF ITS TECHNOLOGY AGREEMENTS WITH ROVER HONDA COULD STICK BMW WITH THE COST OF DEVELOPING NEW ENGINES AND VEHICLES ON ITS OWN HOWEVER AN ABRUPT EXIT ALSO COULD LEAVE HONDA HOLDING A BACKLOG OF ROVER COMPONENTS AND SNARL ITS OWN EUROPEAN PRODUCTION ROVER SUPPLIES BODY PARTS FOR SOME OF HONDA'S UKBUILT MODELS AND ASSEMBLES THE HONDA CONCERTO AT ITS LONGBRIDGE PLANT MEANWHILE BMW OFFICIALS SAID GROUPWIDE SALES ROSE A PRELIMINARY 27 DURING THE FIRST QUARTER TO 750 BILLION MARKS 448 BILLION FROM 730 BILLION MARKS A YEAR EARLIER DESPITE SLUGGISH EUROPEAN SALES AND A 7 DROP IN ITS FIRSTQUARTER PRODUCTION BMW OFFICIALS SAID NEW ORDERS THIS YEAR HAVE CLEARLY OVERSHOT LAST YEAR'S LEVELS AND THE COMPANY EXPECTS 1994 EARNINGS WILL IMPROVE UPON LAST YEAR'S PERFORMANCE 9403300135 940330 BUSINESS BRIEF FURR'S/BISHOP'S SEEKS TO RESTRUCTURE DEBT TO CUT CHAIN'S LOSSES LUBBOCK TEXAS FURR'S/BISHOP'S INC SAID IT WOULD ATTEMPT TO RESTRUCTURE ITS DEBTS TO STEM MOUNTING LOSSES AVOID DEFAULT ON CERTAIN DEBT COVENANTS AND RESPOND TO ITS AUDITOR'S QUESTIONS ABOUT ITS CONTINUING VIABILITY THE RESTAURANT CHAIN SAID IT WOULD ASK CERTAIN DEBTHOLDERS TO CONVERT ABOUT 125 MILLION AGGREGATE AMOUNT OF DEBT INTO A NEW CLASS OF FURR'S COMMON STOCK THEY INCLUDE HOLDERS OF 11 SENIOR SECURED NOTES OF THE COMPANY'S CAFETERIA OPERATORS LP UNIT HOLDERS OF THE 9 NOTE OF ITS CAVALCADE FOODS INC UNIT AND GENERAL ELECTRIC PENSION TRUST WHICH WON A 54 MILLION ARBITRATION AWARD AGAINST THE COMPANY LAST YEAR THE COMPANY ALSO SAID IT WOULD ASK ITS BOARD CREDITORS AND STOCKHOLDERS TO APPROVE REFINANCING ALL OR PART OF ITS REMAINING DEBT AND RECLASSIFICATION OF ITS OUTSTANDING CLASS A AND CLASS B COMMON STOCK AND SERIES A 9 CONVERTIBLE PREFERRED STOCK INTO THE NEW COMMON STOCK ON A SHAREFORSHARE BASIS FURR'S WITH ABOUT 113 MILLION COMMON SHARES OUTSTANDING SAID THE PLAN WOULD DILUTE THE HOLDINGS OF CURRENT SHAREHOLDERS BY SIGNIFICANTLY INCREASING THE NUMBER OF ITS COMMON SHARES OUTSTANDING IT WOULD ALSO REDUCE LIABILITIES INTEREST EXPENSE AND PRINCIPAL PAYMENT OBLIBATIONS WHILE MAKING FUNDS AVAILABLE FOR CAPITAL NEEDS THE COMPANY SAID FURR'S EXPECTS TO BEGIN NEGOTIATIONS WITH CREDITORS SOON SEPARATELY THE COMPANY SAID IT HAD A FOURTHQUARTER NET LOSS OF 1607 MILLION OR 1435 A SHARE AFTER A 1355 MILLION WRITEOFF OF GOODWILL RESULTING FROM THE COMPANY'S 1986 LEVERAGED BUYOUT AND 133 MILLION IN RESTRUCTURING CHARGES IN THE YEAREARLIER PERIOD THE COMPANY REPORTED A NET LOSS OF 12 MILLION OR 27 CENTS A SHARE PERSHARE RESULTS FOR BOTH PERIODS REFLECTED PREFERRED DIVIDEND REQUIREMENTS REVENUE FELL 17 TO 584 MILLION FROM 701 MILLION 9403300134 940330 INTERNATIONAL JAPAN'S RETAIL SALES DECLINE TOKYO SALES AT JAPAN'S MAJOR DEPARTMENT STORES AND SUPERMARKETS IN FEBRUARY WERE DOWN 28 TO 1452 TRILLION YEN 139 BILLION FROM A YEAR EARLIER THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY REPORTED THE DECLINE WAS THE 21ST CONSECUTIVE MONTHLY DROP IN JAPANESE RETAIL SALES THE FEBRUARY DECLINE WAS STEEPER THAN THE 25 DROP IN JANUARY BUT WAS FLATTER THAN THE 47 DROP IN DECEMBER 1993 THE PERSISTENT DROP IN RETAIL SALES ILLUSTRATES THE CONTINUED WEAKNESS IN PERSONAL CONSUMPTION WHICH ACCOUNTS FOR NEARLY 60 OF JAPAN'S DOMESTIC OUTPUT 9403300133 940330 WESTINGHOUSE GETS A CONTRACT PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID IT WAS AWARDED A CONTRACT WORTH MORE THAN 100 MILLION TO SUPPLY POWERGENERATION EQUIPMENT TO KOREA ELECTRIC POWER CORP WESTINGHOUSE WILL SUPPLY TWO COMBUSTION TURBINES ELECTRICAL GENERATORS AND RELATED EQUIPMENT FOR USE IN A 300 MEGAWATT POWER PLANT TO BE BUILT IN ILSAN SOUTH KOREA THE NEW POWER PLANT IS AN EXTENSION OF AN EXISTING 600 MEGAWATT POWER PLANT THAT WENT INTO COMMERCIAL OPERATION IN DECEMBER 1993 WESTINGHOUSE SUPPLIED FOUR 501D5 COMBUSTION TURBINES FOR THAT PLANT AS WELL 9403300132 940330 RULE OF LAW WHAT MR FISKE CAN'T DO WITH THE FACTS BY ROBERT L BARTLEY AS I HAVE STATED IN ITS INTRODUCTION THIS PUBLIC REPORT TO THE CONGRESS IS INCOMPLETE BECAUSE AS YOU KNOW FEDERAL RULE OF CRIMINAL PROCEDURE 6E FORBIDS DISCLOSURE OF MATTERS OCCURRING BEFORE THE GRAND JURY AND THIS WAS VERY LARGELY A GRAND JURY INVESTIGATION MOREOVER THERE ARE OTHER LEGAL AND ETHICAL CONSIDERATIONS GOVERNING MY RELEASE OF ANY MATTERS OF A TESTIMONIAL NATURE MY REPORT TO THE ATTORNEY GENERAL ON THE OTHER HAND IS COMPLETE AND SUMMARIZES FULLY ALL THAT HAS BEEN DONE AND FOUND IN THIS INVESTIGATION SHOULD THE CONGRESS IN ITS WISDOM DECIDE THAT THE PUBLIC INTEREST IN FAVOR OF DISCLOSURE OF THAT FULL REPORT OUTWEIGHS IN THIS CASE THE POLICY REASONS UNDERLYING EXISTING REQUIREMENTS OF SECRECY CONGRESS UNDOUBTEDLY MAY ACT TO RELEASE THE FULL REPORT SO READ THE COVER LETTER TO CONGRESS THE LAST TIME THE BUSINESS AFFAIRS OF THE PRESIDENT OF THE UNITED STATES WERE UNDER INVESTIGATION BY A SPECIAL COUNSEL APPOINTED ON THE SAME TERMS AS ROBERT FISKE IN 1979 PAUL J CURRAN A REPUBLICAN FORMER PROSECUTOR WAS CALLED IN TO INVESTIGATE PRESIDENT CARTER'S PEANUT BUSINESS WHICH HAD RECEIVED A SWIRL OF LOANS FROM THE NATIONAL BANK OF GEORGIA OWNED BY MR CARTER'S FRIEND AND BUDGET DIRECTOR BERT LANCE THE SUSPICION WAS THAT THE LOANS WERE ILLEGALLY DIVERTED TO FINANCE MR CARTER'S PRESIDENTIAL CAMPAIGN THAT IS TO SAY THAT THE CARTER PEANUT INVESTIGATION LOOKED A LOT LIKE WHITEWATER OR AT LEAST LIKE A LITTLE WHITEWATER MR LANCE AND MR CARTER NEVER ACTUALLY ENTERED INTO A PARTNERSHIP AND SO FAR AS IS KNOWN ROSALYNN CARTER MADE NO KILLINGS IN THE COMMODITIES MARKET BUT THE CASES ARE SIMILAR ENOUGH TO SHED LIGHT ON WHAT WE CAN EXPECT AND NOT EXPECT FROM MR FISKE'S INVESTIGATION IN PARTICULAR THE TESTIMONY HE IS GATHERING BEFORE A GRAND JURY WILL ALSO BE SUBJECT TO RULE 6E IN THE PEANUT CASE MR CURRAN AND A STAFF OF LAWYERS INVESTIGATED FOR SIX MONTHS REVIEWED 80000 SUBPOENAED DOCUMENTS HEARD 64 WITNESSES BEFORE A FEDERAL GRAND JURY IN ATLANTA CONDUCTED 34 ADDITIONAL WITNESS INTERVIEWS COMPLEMENTED BY 21 FURTHER INTERVIEWS BY THE FBI THEY ALSO CONDUCTED A FOURHOUR DEPOSITION OF PRESIDENT CARTER UNDER OATH IN THE WHITE HOUSE IN OCTOBER 1979 MR CURRAN ISSUED HIS REPORT THERE IS NO EVIDENCE TO ESTABLISH THAT PRESIDENT JIMMY CARTER COMMITTED ANY CRIMES HE SAID EVERY NICKEL AND EVERY PEANUT HAVE BEEN TRACKED INTO AND OUT OF THE WAREHOUSE AND NO FUNDS WERE UNLAWFULLY DIVERTED WHILE NONE OF THE LOANS WERE DIVERTED INTO THE PRESIDENTIAL CAMPAIGN THEY DID HAVE THEIR PROBLEMS THE WAREHOUSE HAD EXPANDED WITH EQUIPMENT LOANS AND TOOK THE USUAL COMMODITY LOANS SECURED BY ITS PEANUT INVENTORY BUT AT ONE POINT THERE WAS NO COLLATERAL WHEN IT OWED MR LANCE'S BANK OVER A MILLION DOLLARS OVERDRAFTS IN THE WAREHOUSE ACCOUNT AT THE NBG APPEARED VERY FREQUENTLY WITH THE PEAK BEING 369415 THE BANK OFTEN HELD LOAN REPAYMENT CHECKS UNTIL FUNDS WERE AVAILABLE ULTIMATELY PRESIDENT CARTER AND CARTER FARMS IN WHICH HE HELD 91 INTEREST BAILED THE WAREHOUSE OUT OF ITS FINANCIAL DIFFICULTIES WITH A LOAN OF 440000 THE TALE DID NOT CONCERN A CONSPIRACY TO FINANCE MR CARTER'S CAMPAIGN THAT IS BUT A FAILURE OF BUSINESS MANAGEMENT MOST OF THE LOANS WERE GRANTED WHEN THE PEANUT BUSINESS WAS RUN BY THE PRESIDENT'S BROTHER BILLY MR LANCE'S BANK WAS SURELY FORBEARING BUT ITS LOANS WERE ULTIMATELY REDEEMED BY THE PRESIDENTIAL LOAN MR CURRAN DECIDED THAT NONE OF THIS CROSSED THE LINE OF CRIMINALITY PROBABLY FOR LACK OF MENS REA CRIMINAL INTENT AND THAT BASED ON ALL THE EVIDENCE AND THE APPLICABLE LAW NO INDICTMENT CAN OR SHOULD BE BROUGHT AGAINST ANYONE NONE WILL BE FILED AT THE TIME MR LANCE WAS ALREADY UNDER INDICTMENT FOR HIS BANKING PRACTICES ON MATTERS NOT RELATED TO THE CARTER LOANS HE WAS LATER ACQUITTED ON FRAUD CHARGES AND THE JUDGE DISMISSED LESSER CHARGES ON WHICH A JURY DEADLOCKED BY THEN HE'D RESIGNED AS BUDGET DIRECTOR AND SOLD HIS INTEREST IN NBG TO BCCI FIGURE GHAITH PHARAON AT THE END OF THE PEANUT INVESTIGATION MR CURRAN FACED THE ISSUE OF WHAT HE SHOULD DO WITH ALL OF THE INFORMATION HE'D GATHERED AS A SPECIAL COUNSEL HE WAS BOUND BY THE RULES THAT APPLY TO CRIMINAL PROSECUTIONS IN PARTICULAR RULE 6E PROHIBITING THE RELEASE OF GRAND JURY EVIDENCE SINCE HE HAD DECIDED AGAINST INDICTMENT AND TRIALS IN AN ORDINARY CASE THIS WOULD HAVE BEEN THE END OF THE MATTER BUT STONEY SILENCE SCARCELY SEEMED APPROPRIATE ESPECIALLY SINCE THE ATTORNEY GENERAL ASKED FOR A PUBLIC REPORT SO MR CURRAN PREPARED TWO REPORTS A 179PAGE PUBLIC DOCUMENT AND A 239PAGE REPORT SENT ONLY TO THE ATTORNEY GENERAL IN THE PUBLIC VERSION HE SAID I STRESS RIGHT HERE AT THE BEGINNING THIS PUBLIC DOCUMENT CANNOT AND DOES NOT PURPORT TO SET FORTH THE TOTALITY OF THE INVESTIGATION PRESIDENT CARTER COULD ALSO HAVE CHOSEN TO RELEASE HIS OWN DEPOSITION AS A NEW YORK TIMES EDITORIAL URGED SPECULATING ON THE PRESIDENT'S CONTINUING KNOWLEDGE OF THE FAMILY BUSINESS AND ITS FINANCIAL AND LEGAL DIFFICULTIES BUT THE PRESIDENT NEVER RELEASED THE TRANSCRIPT AND CONGRESS NEVER ASKED FOR THE FULL REPORT IN THE PEANUT CASE THIS MAY HAVE BEEN A TOLERABLE OUTCOME BUT WHITEWATER IS A FAR MORE SWEEPING MATTER SAY THAT MR FISKE CONCLUDES THAT INDICTMENTS ARE PRECLUDED BY THE STATUTE OF LIMITATIONS RULE 6E WOULD THEN PREVENT HIM FROM RELEASING THE EVIDENCE HE'D TAKEN BEFORE HIS GRAND JURY SIMILARLY IF HE CONCLUDES IT'S A STRETCH TO SEE GEORGE STEPHANOPOULOS' PHONE CALLS TO THE TREASURY AS AN OBSTRUCTION OF JUSTICE THE TESTIMONY ON THEM WOULD BE KEPT FROM PUBLIC VIEW BOB FISKE WILL GET ALL THE FACTS MR CURRAN SAYS IN REFLECTING ON THE PROSPECTS FOR THE WHITEWATER PROBE BUT BOB FISKE WILL NEVER BE ABLE TO GET ALL THE FACTS OUT' IF HE DID HE WOULD BE ACTING ILLEGALLY AND IN ANY EVENT IT IS NOT HIS RIGHT OR HIS DUTY TO DO SO THE CLAIMS OF SOME DEMOCRATS AND THE EXPECTATIONS OF THE PUBLIC WILL BE FRUSTRATED BY RULE 6E HE SAYS PROSECUTORS ARE NOT INVESTIGATING COMMISSIONS BETWEEN THE CURRAN AND FISKE INVESTIGATIONS CONGRESS TRIED TO COMBINE PROSECUTORS WITH INVESTIGATING COMMISSIONS THROUGH THE ETHICS IN GOVERNMENT ACT UNDER THIS ACT A JUDGE MIGHT RELEASE SOME GRAND JURY TESTIMONY AFTER LENGTHY ARGUMENTS AMONG THE PARTIES LAWRENCE WALSH'S FINAL REPORT ADDED LITTLE TO THE CONGRESSIONAL HEARINGS SIX YEARS EARLIER IT WOULD BE BETTER TO FACE UP TO THE FACT THAT THE ROLES DO NOT MIX PLAIN AND SPECIAL PROSECUTORS DECIDE WHETHER TO INDICT AND LET INVESTIGATING COMMISSIONS BE RUN THE OLDFASHIONED WAY IN PUBLIC AND UNDER CONGRESSIONAL AUTHORITY MR BARTLEY IS EDITOR OF THE JOURNAL 9403300131 940330 TECHNOLOGY AMDAHL IN ALLIANCE TO BUILD MASSIVELY PARALLEL COMPUTERS SUNNYVALE CALIF AMDAHL CORP BECAME THE LATEST COMPUTER MAKER TO ENTER THE MARKET FOR MASSIVELY PARALLEL DATABASE MACHINES WHICH WILL BE BUILT BY NCUBE CORP AND USE SOFTWARE FROM ORACLE CORP AND INFORMATION BUILDERS INC THE COMPANY SAID THE ALLIANCE WITH THE THREE COMPANIES WILL DEVELOP ELECTRONIC REPOSITORIES THAT CAN STORE AND RETRIEVE VAST AMOUNTS OF DATA MASSIVELY PARALLEL COMPUTERS GET THEIR POWER FROM USING HUNDREDS OR THOUSANDS OF PROCESSING UNITS NCUBE BASED IN FOSTER CITY CALIF MAKES SYSTEMS WITH UP TO 8192 PROCESSORS AMDAHL WHICH IS BESTKNOWN FOR MAINFRAME COMPUTERS COMPATIBLE WITH THOSE OF INTERNATIONAL BUSINESS MACHINES CORP ALSO SAID IT WILL BOOST ITS MAINFRAME LINE WITH THE ADDITION OF MACHINES THAT USE 10 AND 12 PROCESSORS THE 12PROCESSOR SYSTEM TO BE DELIVERED IN THE FOURTH QUARTER AT A LIST PRICE OF ABOUT 30 MILLION OFFERS A 40 PERFORMANCE BOOST OVER ITS PREVIOUS EIGHTPROCESSOR SYSTEM THE COMPANY SAID THE COMPANY'S MOVES WERE INTENDED TO UPSTAGE IBM SYSTEMS THAT WILL BE UNVEILED NEXT WEEK THE ANNOUNCEMENTS ARE EXPECTED TO INCLUDE AN IMPROVED VERSION OF AN EXISTING MASSIVELY PARALLEL MACHINE AS WELL AS A 10PROCESSOR MAINFRAME AMDAHL WHICH HASN'T HAD A PROFIT SINCE THE FOURTH QUARTER OF 1992 EXPECTS TO RETURN TO PROFITABILITY THIS YEAR TO DO THAT IT IS TRYING TO USE PARTNERSHIPS WITH OTHER VENDORS TO FIND NEW NICHES THAT ARE GROWING FASTER THAN THE MORIBUND MAINFRAME MARKET BUT THE MARKET FOR MASSIVELY PARALLEL SYSTEMS MAY BE CROWDED ANALYSTS NOTE VENDORS THAT MATCH SUCH SYSTEMS WITH DATABASE SOFTWARE NOW INCLUDE AMERICAN TELEPHONE & TELEGRAPH CO DIGITAL EQUIPMENT CORP AND TANDEM COMPUTERS INC AMDAHL DIDN'T DISCLOSE THE PRICE OR DELIVERY DATE OF ITS NEW PARALLEL SYSTEMS 9403300130 940330 NOW AVAILABLE ON COMPACT DISKS FEATURING SONGS BY BY JEFFREY A TRACHTENBERG STAFF REPORTER OF THE WALL STREET JOURNAL FOR PAUL MCCARTNEY BEING ONE OF THE MOST FAMOUS ROCK MUSICIANS IN THE WORLD MEANS NOT PUTTING YOUR NAME ON YOUR NEWEST ALBUM MR MCCARTNEY THE 51YEAROLD FORMER BEATLE HAS JUST RELEASED STRAWBERRIES OCEANS SHIPS FOREST ON CAPITOL RECORDS BUT HIS NAME DOESN'T APPEAR ON THE LINER NOTES OR ANYWHERE ELSE FOR THAT MATTER ALTHOUGH THE ALBUM'S NINE TRACKS ARE ATTRIBUTED TO A MYSTERIOUS PERFORMER CALLED THE FIREMAN THE RHYTHMIC BLEND OF INDUSTRIAL MUSIC TRIBAL DRUMS AND STRANGE MOANINGS WAS RECORDED BY MR MCCARTNEY AND BRITISH PRODUCER YOUTH OTHERWISE KNOWN AS MARTIN GLOVER IT IS PRACTICALLY IMPOSSIBLE TO RECOGNIZE MR MCCARTNEY'S DISTINCTIVE VOICE ON ANY OF THE CUTS THAT MAY BE THE POINT ALTHOUGH MR MCCARTNEY HAS RELEASED MORE THAN 20 ALBUMS SINCE HIS GLORY DAYS AS A BEATLE HIS LAST TWO WORKS PAUL IS LIVE AND OFF THE GROUND BOTH PRODUCED DISAPPOINTING SALES RESULTS IN THIS COUNTRY WHILE OTHER PERFORMERS GO OUT OF THEIR WAY TO GET NOTICED RHYTHMANDBLUES TRIO TONY TONI TONE HAVE JUST FINISHED MAKING A NEW MUSIC VIDEO FOR MERCURY RECORDS IN THE NUDE MR MCCARTNEY'S NEW ALBUM WILL RECEIVE NO PLANNED PROMOTIONAL SUPPORT JAMES BOWMAN MANAGER OF THE COCONUTS MUSIC & MOVIES STORE IN NEW YORK'S GREENWICH VILLAGE SAYS CAPITOL RECORDS SHIPPED THE ALBUM WITHOUT ANY MENTION OF THE FORMER BEATLE MARTIN SCOTT MARKETING MANAGER OF MPL COMMUNICATIONS LTD MR MCCARTNEY'S LONDONBASED MANAGEMENT AND PUBLISHING COMPANY SAYS THE PERFORMER WON'T BE GIVING ANY INTERVIEWS ON THE SUBJECT MR MCCARTNEY HAS TWO REASONS FOR CONCEALING HIS IDENTITY PAUL IS KNOWN FOR A PARTICULAR KIND OF MUSIC AND HE DIDN'T WANT HIS FANS TO BUY THIS ALBUM AND THEN BE DISAPPOINTED BECAUSE IT WASN'T WHAT THEY EXPECTED SAYS MR SCOTT ALSO HE WANTED PEOPLE TO LISTEN BEFORE THEY KNEW WHO IT WAS 9403300129 940330 WHO'S NEWS LIMITED INC'S NO 2 EXECUTIVE WEISS WILL HEAD LIMITED STORES UNIT FOR NOW BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL LIMITED INC SAID ITS VICE CHAIRMAN WILL ACT AS HEAD OF ITS LIMITED STORES CHAIN THE LAGGING UNIT OF THE RETAILING APPAREL COMPANY FOLLOWING THE RESIGNATION OF THE UNIT'S PRESIDENT HOWARD GROSS LIMITED CHAIRMAN LESLIE H WEXNER SAID THAT MICHAEL WEISS 52 YEARS OLD COMPANY VICE CHAIRMAN AND NO 2 MERCHANT WAS NAMED THE ACTING PRESIDENT WHILE THE COMPANY SEARCHES FOR A PERMANENT SUCCESSOR SHORTLY AFTER THAT ANNOUNCEMENT TODAY'S MAN INC A FASTGROWING NEW JERSEYBASED MEN'S APPAREL RETAILER SAID IT HIRED THE 50YEAROLD MR GROSS AS ITS NEW PRESIDENT AND CHIEF OPERATING OFFICER AS OF APRIL 4 A 21YEAR VETERAN OF LIMITED MR GROSS SPENT THE LAST THREE YEARS RUNNING THE LIMITED STORES UNIT TODAY'S MAN RECENTLY OPENED A SUPERSTORE IN MANHATTAN AND THREE OTHERS IN CHICAGO FOR A TOTAL OF 25 STORES OPERATING LARGELY ON THE EAST COAST THE COMPANY HAD ANNUAL SALES OF 1671 MILLION FOR THE FISCAL YEAR ENDED JAN 29 IT REPORTED STRONG SALES AT ITS NEW MANHATTAN LOCATION AND ANNOUNCED PLANS TO OPEN MORE STORES IN HEAVY NASDAQ TRADING YESTERDAY TODAY'S MAN SHARES ROSE 25 CENTS TO 1575 IN TRADING ON THE NEW YORK STOCK EXCHANGE LIMITED SHARES FELL 625 CENTS TO 21 MR GROSS MADE HIS NAME AT THE LIMITED BY GUIDING THE EXPANSION OF VICTORIA'S SECRET FROM ABOUT 12 STORES IN THE MID1980S TO OVER 400 STORES BY JANUARY 1991 WHEN HE WAS APPOINTED PRESIDENT OF THE LIMITED STORES UNIT UNDER MR GROSS HOWEVER LIMITED STORES TURNED IN LARGELY DISAPPOINTING OPERATING RESULTS AND IT WAS CLOSING STORES LIMITED STORES CONTRIBUTED 11 BILLION IN SALES TO THE COMPANY'S TOTAL SALES OF 725 BILLION IN THE FISCAL YEAR ENDED JAN 29 BUT ACCORDING TO ANALYSTS LIMITED STORES' OPERATING PROFIT IN THE LAST FISCAL YEAR WAS ABOUT 20 MILLION SIGNIFICANTLY LESS THAN A FEW YEARS AGO ALTHOUGH LIMITED STORES HAD ABOUT 760 STORES IN 1992 IT IS PARING THAT NUMBER DOWN TO REACH AN ESTIMATED 703 BY THE END OF THIS YEAR ANALYSTS SAID THEY EXPECTED MR GROSS'S DEPARTURE BECAUSE THE UNIT WASN'T KEEPING PACE WITH THE LIMITED'S OTHER FASTGROWING UNITS SUCH AS VICTORIA'S SECRET AND BATH & BODY WORKS LIMITED STORES HAVE BEEN FLOUNDERING FOR FIVE YEARS IN TERMS OF DIRECTION SAID JEFFREY EDELMAN AN ANALYST WITH C J LAWRENCE INC IT LOST THE FOCUS ON ITS TARGET CUSTOMER AND NEVER DIFFERENTIATED ITSELF LIMITED'S MR WEXNER IS LOOKING TO REJUVENATE THE UNIT IN A STATEMENT YESTERDAY HE SAID I BELIEVE LIMITED STORES HAS ENORMOUS POTENTIAL FOR SALES AND EARNINGS GROWTH THE COLUMBUS OHIOBASED LIMITED OPERATES 4606 SPECIALTY STORES UNDER THE NAMES EXPRESS STRUCTURE ABERCROMBIE & FITCH AND HENRI BENDEL AMONG OTHERS 9403300128 940330 BUSINESS BRIEF NORWEST CORP NORWEST BANK MINNESOTA TO ACQUIRE CRESTONE STAKE NORWEST BANK MINNESOTA A UNIT OF NORWEST CORP SAID IT HAS AGREED TO ACQUIRE A STAKE IN CRESTONE CAPITAL MANAGEMENT INC A DENVERBASED INVESTMENT ADVISER TERMS WEREN'T DISCLOSED THE BANK SAID CRESTONE FOCUSES ON SECURITIES OF SMALL AND MEDIUMSIZED COMPANIES WITH SMALL MARKET CAPITALIZATION NORWEST SAID THE ACQUISITION WILL ALLOW NORWEST INVESTMENT MANAGEMENT A UNIT OF THE BANK TO EXPAND ITS INVESTMENT PRODUCT THE TRANSACTION IS SUBJECT TO APPROVAL BY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY 9403300127 940330 BUSINESS BRIEF LOCKHEED CORP AERONAUTICALSYSTEMS UNIT TO TRIM OVER 2000 JOBS LOCKHEED CORP SAID IT WOULD REDUCE OPERATIONS AT ITS AERONAUTICALSYSTEMS UNIT MAINLY AT ITS MARIETTA GA PLANT BY CUTTING MORE THAN 2000 JOBS BY THE END OF 1995 THE MILITARY AEROSPACE AND ELECTRONICS CONCERN WHICH IS BASED IN CALABASAS CALIF AND EMPLOYS 83500 SAID THE REDUCTIONS REFLECT A TRANSITION FROM PRODUCTION OF ITS C130H MILITARY TRANSPORT TO THE NEW MODEL THE C130J AND THE COMPLETION OF ITS P3 MARITIME PATROLAIRCRAFT PROGRAM EMPLOYMENT AT MARIETTA AND SEVERAL FEEDER PLANTS WHICH PEAKED AT 33000 IN 1969 DURING PRODUCTION OF THE C5A TRANSPORT WILL BE CUT BACK AT MIDYEAR FROM THE CURRENT LEVEL OF 11700 A LOCKHEED SPOKESMAN SAID LOCKHEED ALSO MAKES THE F22 AIR FORCE FIGHTER AT THE AERONAUTICALSYSTEMS UNIT 9403300126 940330 PARKER & PARSLEY PETROLEUM MIDLAND TEXAS PARKER & PARSLEY PETROLEUM CO SAID A UNIT RAISED 183 MILLION BY PRIVATELY SELLING 3776400 SHARES OF 6 1/4 CUMULATIVE GUARANTEED CONVERTIBLE MONTHLY INCOME PREFERRED STOCK WITH A LIQUIDATION PREFERENCE OF 50 A SHARE PARKER & PARSLEY SAID THE FUNDS WILL BE USED FOR ACQUISITIONS AS THEY ARISE MEANWHILE THE OIL AND NATURAL GAS COMPANY SAID IT WOULD USE THE PROCEEDS TO REDUCE ITS BANK DEBT TO 282 MILLION PARKER & PARSLEY SAID IT HAD BANK DEBT OF 509 MILLION AT THE END OF 1993 9403300125 940330 BUSINESS BRIEFS NORWOOD PROMOTIONAL PRODUCTS INC AGREED TO ACQUIRE ARTMOLD PRODUCTS CORP CRANSTON RI TERMS WEREN'T DISCLOSED MANUFACTURED HOME COMMUNITIES INC PAID 8 MILLION TO ACQUIRE NORTHLAKE A 435SITE 57ACRE MANUFACTURED HOUSING COMMUNITY IN THORNTON COLO FROM CARLSBERG MANAGEMENT CO BERTELSMANN AG'S BMG INTERNATIONAL UNIT AGREED TO ACT AS INTERNATIONAL DISTRIBUTOR OF THE MULTIMEDIA SOFTWARE PRODUCTS PUBLISHED BY CRYSTAL DYNAMICS INC USING ITS HOME VIDEO AND MUSIC DISTRIBUTION NETWORKS OUTSIDE THE US BMG WILL LAUNCH A BMG MULTIMEDIA UNIT ITS FIRST FORAY INTO INTERACTIVE SOFTWARE COORS BREWING CO A UNIT OF ADOLPH COORS CO COMPLETED THE PURCHASE OF A BREWERY IN ZARAGOZA SPAIN FROM EL AGUILA SA MADRID TERMS OF THE PACT WEREN'T DISCLOSED 9403300124 940330 THOR FORMS FINANCING BUSINESS JACKSON CENTER OHIO THOR INDUSTRIES INC SAID IT ENTERED THE BUSINESS OF FINANCING RETAIL RECREATIONALVEHICLE SALES THE COMPANY SAID THOR CREDIT CORP A NEW FINANCE COMPANY WAS FORMED BY IT AND GANIS CREDIT CORP A NATIONAL FINANCIAL INSTITUTION ENGAGED IN RECREATIONALVEHICLE AND MARINE FINANCING WADE FB THOMPSON THOR INDUSTRIES' CHAIRMAN DESCRIBED THE VENTURE AS AN EXCELLENT PROFIT OPPORTUNITY FOR THOR IN ADDITION TO PROVIDING THOR'S 650 DEALERS WITH A COMPETITIVE SOURCE FOR SALES FINANCING THOR IS THE SECONDLARGEST MANUFACTURER OF RECREATIONAL VEHICLES AND THE LARGEST BUILDER OF SMALL AND MIDSIZED BUSES IN NORTH AMERICA 9403300123 940330 EATON PLANS NEW PLANT CLEVELAND EATON CORP CITING INCREASED DEMAND IN ITS AUTOMOTIVE AND COMMERCIAL MARKETS PLANS TO BREAK GROUND IN APRIL FOR A 44000SQUAREFOOT FASTENERMANUFACTURING PLANT IN BRUNSWICK OHIO THE PLANT AND EQUIPMENT WILL COST ABOUT 48 MILLION ABOUT 45 EMPLOYEES WILL BE HIRED IN THE EXPANSION PROGRAM AND AN ADDITIONAL 58 ADMINISTRATIVE STAFF WILL BE RELOCATED TO THE NEW FACILITY FROM THE DIVISION'S HEADQUARTERS NOW LOCATED IN LEASED OFFICE SPACE IN LAKEWOOD OHIO 9403300122 940330 YOUR MONEY MATTERS LOOK FOR VALUE IN TAXDEFERRED INSURANCE BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL CONSERVATIVE INVESTORS ARE PUTTING BILLIONS OF DOLLARS INTO INVESTMENTS THAT DON'T DISCLOSE PAST PERFORMANCE CURRENT RETURNS OR ANNUAL FEES WHAT'S MORE THESE PEOPLE ARE COMMITTING THEMSELVES TO MAKING PAYMENTS FOR YEARS TO COME AND PAYING COMMISSIONS THAT TYPICALLY RANGE FROM 60 TO MORE THAN 100 OF THEIR FIRSTYEAR PAYMENTS THE INVESTMENT TAXDEFERRED CASHVALUE LIFE INSURANCE POLICIES UNLIKE TERM LIFE INSURANCE WHICH PROVIDES ONLY DEATH PROTECTION CASHVALUE POLICIES WHOLE UNIVERSAL AND VARIABLE LIFE ALSO INCLUDE TAXDEFERRED INVESTMENT ACCOUNTS OR MUTUAL FUNDS MANY PEOPLE USE THEM TO SAVE FOR COLLEGE RETIREMENT AND OTHER PURPOSES BUT WHILE THESE INVESTORS PROBABLY WOULDN'T CONSIDER OTHER INVESTMENTS WITHOUT CHECKING PAST PERFORMANCE CURRENT RETURNS SALES COMMISSIONS AND ANNUAL FEES FEW EVER THINK OF EVALUATING LIFE INSURANCE IN THE SAME WAY THAT CAN BE A BAD MISTAKE ALTHOUGH THE TAXFREE BUILDUP IN A GOOD WHOLELIFE POLICY CAN MAKE THESE PRODUCTS ATTRACTIVE INVESTMENTS FOR SOME PEOPLE IT ISN'T WISE TO INVEST IN ANYTHING YOU DON'T UNDERSTAND IF THE COSTS ARE TOO HIGH OR THE RETURNS ARE TOO LOW EVEN TAX DEFERRAL AND A GUARANTEED DEATH BENEFIT WON'T MAKE A POLICY DESIRABLE HIGH ANNUAL COSTS AND MEDIOCRE PERFORMANCE CAN OFFSET THE BENEFITS OF LOW COMMISSIONS AND WITHOUT SOME BASIC INFORMATION YOU CAN'T KNOWLEDGEABLY WEIGH ONE AGENT'S PROPOSAL AGAINST ANOTHER'S SO HOW CAN YOU EVALUATE A POLICY INSURANCE INDUSTRY EXECUTIVES SAY TO FOCUS ON SOME KEY FACTORS THAT PROVIDE RELIABLE CLUES TO WHETHER A COMPANY IS AT THE TOP OF THE PACK IN TERMS OF INVESTMENT PERFORMANCE COST COMMISSIONS AND CONTINUING SERVICE START WITH PERFORMANCE FORGET AGENTS' ILLUSTRATIONS SINCE YOUR CASH VALUES WILL REFLECT THE PERFORMANCE OF THE LIFE INSURANCE COMPANY'S INVESTMENTS IT MAKES SENSE TO BEGIN BY LOOKING AT WHETHER IT HAS BEEN AMONG THE TOP PERFORMERS OVER THE PAST 10 AND 20 YEARS ACCORDING TO AM BEST CO A GOOD AGENT WILL BE GLAD TO SHOW YOU THE 20YEAR DIVIDEND HISTORY SAYS JOSEPH D SARGENT PRESIDENT OF GUARDIAN LIFE INSURANCE CO NEW YORK IT'S EASIER TO LOOK AT PAST PERFORMANCE IF YOU'RE INVESTING IN VARIABLE LIFE POLICIES SINCE YOU ALLOCATE YOUR INVESTMENT DOLLARS INTO MUTUAL FUNDS WHICH REPORT RETURNS THE SAME WAY OTHER MUTUAL FUNDS DO UNFORTUNATELY MOST OF THE FUNDS IN VARIABLE LIFE POLICIES ARE TOO NEW TO HAVE SIGNIFICANT TRACK RECORDS AND EVEN WHEN YOU KNOW THE TRACK RECORD ON THE FUND THAT DOESN'T TELL YOU WHAT YOUR RETURN WOULD HAVE BEEN AFTER INSURANCE COMPANY FEES AND DEATHPROTECTION COSTS ANOTHER FACTOR TO CONSIDER IS THE IMPACT OF COSTS COMPANIES THAT DON'T KEEP EXPENSES UNDER CONTROL MAY INCLUDE THOSE THAT ARE BADLY RUN IN FINANCIAL TROUBLE OR IN THE PROCESS OF EXPANDING AWAY FROM THE CORE BUSINESS ALTHOUGH THERE'S NO SIMPLE WAY TO COMPARE COSTS AMONG DIFFERENT COMPANIES EXPERTS SAY GOOD INDICATORS INCLUDE LOW TURNOVER AMONG AGENTS SINCE THE COMPANY WON'T SPEND AS MUCH TO ATTRACT AND TRAIN NEW AGENTS ANOTHER PLUS OF GOOD RETENTION RATES THEY TYPICALLY INDICATE THAT A COMPANY HAS BETTERTRAINED MORE PRODUCTIVE AGENTS WHICH MEANS YOUR AGENT WILL MORE LIKELY BE AROUND IN YEARS TO COME TO ANSWER QUESTIONS ABOUT YOUR POLICY PERSISTENCY RATES HOW LONG THE POLICYHOLDERS STICK AROUND IS ANOTHER IMPORTANT CLUE TO COSTS COMPANIES THAT DON'T RETAIN POLICYHOLDERS TEND TO HAVE HIGHER ACQUISITION COSTS INDUSTRY FIGURES SHOW THAT ON AVERAGE ABOUT 50 OF INSURANCE INVESTORS DROP THEIR POLICY WITHIN FIVE YEARS BUT THE PERSISTENCY RATE IS SIGNIFICANTLY HIGHER AT SOME COMPANIES AT PRINCIPAL MUTUAL LIFE INSURANCE CO DES MOINES IOWA 65 OF LIFEINSURANCE POLICIES REMAIN IN FORCE AT THE FIVEYEAR POINT AND AT MASSACHUSETTS MUTUAL LIFE INSURANCE CO SPRINGFIELD MASS THE FIGURE IS 73 HIGH PERSISTENCY RATES CAN ALSO BOOST PERFORMANCE GOOD PERSISTENCY LETS THE COMPANY TAKE A LONGERTERM VIEW WITH ITS INVESTMENTS SO IT CAN RIDE OUT CYCLES IN REAL ESTATE AND THE BOND MARKETS SAYS ROBERT CARLSON EXECUTIVE VICE PRESIDENT OF NORTHWESTERN MUTUAL LIFE INSURANCE CO MILWAUKEE IN SHORT COMPANIES WITH LOWER TURNOVER OF AGENTS AND POLICYHOLDERS HAVE LOWER OPERATING COSTS AMONG THE TOP COMPANIES IN TERMS OF PERFORMANCE HISTORIES AND COST CONTROL INCLUDE NORTHWESTERN MUTUAL GUARDIAN PRINCIPAL MASSACHUSETTS MUTUAL AND STATE FARM LIFE INSURANCE CO BLOOMINGTON ILL WHAT ABOUT COMMISSIONS UPFRONT SALES AND MARKETING EXPENSES CAN RANGE FROM 65 TO 75 OF FIRSTYEAR PREMIUMS AT BLUECHIP COMPANIES SUCH AS THOSE ABOVE TO MORE THAN 165 AT SOME OTHER COMPANIES A GROWING NUMBER OF LOWLOAD LIFE INSURANCE POLICES WHICH ARE SOLD DIRECTLY OVER THE PHONE BYPASSING AGENTS CAN SAVE INVESTORS THOUSANDS OF DOLLARS IN COMMISSIONS BUT BEFORE RUSHING INTO LOWLOAD POLICIES DON'T IGNORE OTHER COSTS AND PERFORMANCE YOU WON'T COME OUT AHEAD BUYING FROM A LOWLOAD COMPANY IF IT HAS HIGH ANNUAL OPERATING COSTS AND FLABBY PERFORMANCE THE PARALLEL IN THE MUTUAL FUNDS LANDSCAPE COULD BE A FUND WITH NO FRONTEND LOAD BUT HIGH ANNUAL 12B1 FEES STEEP ANNUAL EXPENSES AND DULL PERFORMANCE I'M DISAPPOINTED IN MANY OF THE LOWLOAD COMPANIES SAYS ELLIOTT LIPSON A FEEONLY INSURANCE CONSULTANT IN ATLANTA TYPICALLY THE ONLY ADVANTAGE WITH LOWLOAD IS IF YOU SURRENDER EARLY THAT IS CASH IN YOUR POLICY WITHIN THE FIRST SEVEN OR SO YEARS IF YOU LOOK AT PERFORMANCE THE DIFFERENCE BETWEEN LOWLOAD AND TRADITIONAL POLICIES EVAPORATES BY THE EIGHTH OR NINTH YEAR MR LIPSON SAYS HE ADDS THAT COMPANIES WITH ZERO UPFRONT COMMISSIONS SUCH AS USAA LIFE INSURANCE CO SAN ANTONIO COMPARE FAVORABLY HOWEVER AND LET YOU BUILD UP CASH VALUES QUICKLY IF YOU DECIDE TO STICK WITH A TRADITIONAL AGENTSOLD POLICY A GOOD AGENT CAN REDUCE COMMISSIONS ALMOST TO THE LEVEL OF LOWLOADS BY BLENDING THE HIGHCOST CASHVALUE POLICY WHICH CONTAINS THE TAXDEFERRED INVESTING COMPONENT WITH A LOWCOST TERMLIFE POLICY SAYS JOHN E SEBASTIAN A SALES REPRESENTATIVE WITH AMERICAN PENSION BENEFITS INC IN ORLANDO FLA IN THESE TYPES OF POLICIES CASH VALUES CAN BE ALMOST AS HIGH AS LOWLOAD POLICIES IN THE EARLY YEARS HE SAYS FINALLY IT'S CRUCIAL TO CHOOSE COMPANIES THAT HAVE HIGH RATINGS FOR FINANCIAL SOUNDNESS INDUSTRY EXPERTS SAY THAT'S BECAUSE THE HIGH STARTUP COSTS AND CONTINUING EXPENSES MAKE INSURANCE A GOOD INVESTMENT ONLY WHEN IT IS A LONGTERM INVESTMENT 9403300121 940330 MARKETING & MEDIA RJ REYNOLDS' CZECH VENTURE NEW YORK R J REYNOLDS TOBACCO INTERNATIONAL INC SAID IT PLANS TO INVEST IN A CIGARETTE MAKINGANDPACKING FACILITY IN THE CZECH REPUBLIC THE FACILITY IS PART OF A 100 MILLION COMMITMENT EARMARKED FOR THE CZECH REPUBLIC OVER THE NEXT FIVE YEARS BY RJR TOBACCO A UNIT OF RJR NABISCO HOLDINGS CORP RJR BEGAN IMPORTING CAMEL CIGARETTES INTO THE COUNTRY IN 1993 THE NEW PLANT WILL HAVE A PRODUCTION CAPACITY OF ABOUT 25 BILLION CIGARETTES ANNUALLY 9403300120 940330 COMMODORE TRADING SUSPENDED NEW YORK THE NEW YORK STOCK EXCHANGE SUSPENDED TRADING IN THE COMMON STOCK OF COMMODORE INTERNATIONAL LTD THE PERSONAL COMPUTER MAKER THAT SAID LAST WEEK IT MAY FACE LIQUIDATION THE BIG BOARD SAID TRADING WOULD BE SUSPENDED WHILE IT DETERMINES WHETHER COMMODORE BASED IN WEST CHESTER PA REMAINS ELIGIBLE FOR LISTING ON THE EXCHANGE THE EXCHANGE DIDN'T ELABORATE AND COMMODORE DIDN'T MAKE A SPOKESMAN AVAILABLE FOR COMMENT 9403300119 940330 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 AK STEEL HOLDING CORP 325 MILLION OF SENIOR NOTES DUE APRIL 1 2004 PRICED AT PAR TO YIELD 1075 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC ALLTEL CORP 250 MILLION OF DEBENTURES DUE APRIL 1 2004 PRICED AS 725S AT 99508 TO YIELD 732 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY STEPHENS INC FEDERAL HOME LOAN BANK SYSTEM 112 MILLION OF NOTES DUE APRIL 7 1997 PRICED AT PAR TO YIELD 573 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR ONE YEAR AND WERE PRICED AT A SPREAD OF 20 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FUJI SECURITIES GREYHOUND FINANCIAL CORP 100 MILLION OF NOTES DUE APRIL 1 2001 PRICED AS 725S AT 99244 TO YIELD 739 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 88 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES INC GREYHOUND IS A UNIT OF GFC FINANCIAL CORP TEXAS GAS TRANSMISSION CORP 150 MILLION OF NOTES DUE APRIL 1 2004 PRICED AT PAR TO YIELD 8625 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 1965 BASIS POINTS ABOVE TREASURYS RATED BA2 BY MOODY'S AND DOUBLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC TEXAS GAS IS A UNIT OF TRANSCO ENERGY CO APPLIED DIGITAL ACCESS INC INITIAL PUBLIC OFFERING OF 26 MILLION COMMON SHARES PRICED AT 12 EACH ACCORDING TO THE COMPANY ALEX BROWN & SONS INC AND HAMBRECHT & QUIST INC COMANAGED THE OFFERING CAMERON ASHLEY INC INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY ROBINSONHUMPHREY CO DPL INC 32 MILLION COMMON SHARES PRICED AT 20375 EACH ACCORDING TO THE COMPANY CS FIRST BOSTON INC IS THE LEAD MANAGER ROUGE STEEL CO INITIAL PUBLIC OFFERING OF SEVEN MILLION SHARES PRICED AT 22 EACH ACCORDING TO THE COMPANY LEAD MANAGER FOR THE OFFERING IS MORGAN STANLEY & CO HONOLULU 150 MILLION OF SERIES 1994A GENERALOBLIGATION BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 46 IN 1998 TO 59 IN 2013 AND 2014 MOODY'S AND S&P HAVE RATED THE ISSUE DOUBLEA THE BONDS ARE NONCALLABLE MICHIGAN MUNICIPAL BOND AUTHORITY 1098 MILLION OF SERIES 1994A LOCALGOVERNMENT LOAN PROGRAM REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP TO YIELD FROM 28 IN DECEMBER TO 618 IN 2018 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P NEW YORK STATE ENVIRONMENTAL FACILITIES CORP 717 MILLION OF SERIES 1994A STATE WATERPOLLUTION CONTROL REVOLVINGFUND REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 355 IN 1995 TO 619 IN 2014 AND 2015 MOODY'S AND FITCH INVESTORS SERVICE INC HAVE RATED THE BONDS DOUBLEA AND S&P HAS ASSIGNED A SINGLEAMINUS RATING BONDS DUE IN 200812 ARE NONCALLABLE THE BALANCE OF THE SECURITIES ARE CALLABLE JUNE 15 2004 AT 102 DECLINING TO PAR IN 2006 FEDERAL NATIONAL MORTGAGE ASSOCIATION 8388 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING REMIC TRUST 199475 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 359 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 1335 MILLION OF REMIC MORTGAGE SECURITIES OFFERED BY CS FIRST BOSTON INC THE OFFERING SERIES 199473 IS BACKED BY VARIOUS CLASSES FROM THE AGENCY'S REMIC MORTGAGE SECURITIES INCLUDING 219 MILLION OF REMIC 199298 CLASS PK 744 MILLION OF REMIC 1992112 CLASS EB 188 MILLION OF REMIC 1992112 CLASS EC AND 184 OF REMIC 1992126 CLASS PH BANK AUSTRIA AG AUSTRIA 170 BILLION ITALIAN LIRE OF 9125 EUROBONDS DUE APRIL 29 2004 AT ISSUE PRICE 10025 VIA BANCA COMMERCIALE ITALIANA AND BANCA NAZIONALE DEL LAVORO BONDS YIELD 94 AFTER FULL FEES OF TWO CALLABLE ANNUALLY FROM APRIL 29 1996 AT PAR DEUTSCHE FINANCE NETHERLANDS BV GERMAN PARENT ONE BILLION MARKS OF 575 EUROBONDS DUE MAY 4 1999 AT ISSUE PRICE 10132 VIA DEUTSCHE BANK AG RECOMMENDED REOFFER PRICE 9937 TO YIELD 59 A MARGIN OF 25 BASIS POINTS OVER COMPARABLE GERMAN GOVERNMENT NOTE GUARANTOR DEUTSCHE BANK AG FEES TWO MITSUBISHI CORP FINANCE PLC JAPANESE PARENT 75 BILLION YEN OF STEPUP COUPON EUROBONDS DUE JULY 18 1997 AT ISSUE PRICE 1002 VIA MITSUBISHI FINANCE INTERNATIONAL PLC COUPON 315 UNTIL JULY 18 1996 WHEN BONDS CALLABLE AT PAR THEREAFTER COUPON 38 KEEPWELL AGREEMENT WITH MITSUBISHI CORP FEES 02 SWEDEN SOVEREIGN 400 MILLION DUTCH GUILDERS OF 575 EUROBONDS DUE APRIL 21 1998 AT ISSUE PRICE 10028 VIA ABN AMRO BANK NV REOFFERED AT 9953 TO YIELD 5885 A MARGIN OF 15 BASIS POINTS OVER INTERPOLATED YIELD CURVE BETWEEN FEBRUARY 1997 AND JULY 1998 DUTCH STATE LOANS FEES ONE U S WEST COMMUNICATIONS INC US PARENT 100 MILLION SWISS FRANCS OF 475 PRIVATELY PLACED NOTES DUE APRIL 22 1999 PRICED AT 102125 VIA SWISS BANK CORP FEES 15 ROYAL BANK OF SCOTLAND 200 MILLION OF EXCHANGEABLE CAPITAL SECURITIES PRICED WITH A 85 DIVIDEND YIELD THE SECURITIES WERE PRICED AT 25 EACH ACCORDING TO MCM CORPORATEWATCH THE SECURITIES ARE EXCHANGEABLE INTO UK PREFERENCE SHARES WITH A 9375 DIVIDEND YIELD AT THE COMPANY'S OPTION THE ISSUE IS NONCALLABLE FOR 10 YEARS AND IS RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO 9403300117 940330 OKLAHOMA G&E RETIREMENTS OKLAHOMA CITY OKLAHOMA GAS & ELECTRIC CO SAID IT WOULD OFFER VOLUNTARY EARLY RETIREMENT TO WORKERS OLDER THAN 55 AS PART OF A COSTCUTTING EFFORT BEGUN IN FEBRUARY UP TO 15 OF THE COMPANY'S WORK FORCE COULD BE ELIGIBLE THE COMPANY SAID AT THE END OF 1993 IT HAD 3769 EMPLOYEES DETAILS OF THE PLAN WHICH IS EXPECTED TO BE IMPLEMENTED BY THE FALL ARE NOT FINAL OKLAHOMA GAS & ELECTRIC SAID IT IS REVIEWING ITS OPERATIONS TO BETTER COMPETE IN THE ELECTRIC UTILITY INDUSTRY AND COULD INSTITUTE OTHER COSTCUTTING MEASURES 9403300116 940330 WHO'S NEWS KMART CORP KMART CORP TROY MICH WALDEN BOOKS A BOOK STORE DIVISION OF THIS RETAILER NAMED BRUCE QUINNELL 45 YEARS OLD EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR QUINNELL WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION OF PACE MEMBERSHIP WAREHOUSE INC ENGLEWOOD COLO RECENTLY ACQUIRED BY WALMART STORES INC WALDEN SAID IT HASN'T USED THE CHIEF OPERATING OFFICER TITLE SINCE CHARLES R CUMELLO WAS PROMOTED FROM THAT POST TO CHIEF EXECUTIVE OFFICER SEVERAL YEARS AGO 9403300115 940330 PEPPERAND SALT WIELDED BY PARTY HACKS NOW GET YOUR GOAT I'M GIVING UP HOPE THE OPERAS SOAP 9403300114 940330 LORENZO ATX APPLICATION IS OFFERED SECOND HEARING WASHINGTON THE TRANSPORTATION DEPARTMENT OFFERED ATX INC FRANK LORENZO'S PROPOSED NEW AIRLINE A SECOND HEARING AFTER ATX RAISED ETHICAL QUESTIONS ABOUT ITS FIRST HEARING THE DEPARTMENT SAID THE NEW HEARING WAS BEING OFFERED TO ASSURE AGAINST THE APPEARANCE OF BIAS AFTER THE FIRST HEARING ROBERT BARTON JR AN ADMINISTRATIVE LAW JUDGE RECOMMENDED THAT THE DEPARTMENT REJECT THE AIRLINE'S APPLICATION TO OFFER SCHEDULED AIRLINE SERVICE THE AIRLINE SUBSEQUENTLY CHARGED THAT A STAFF MEMBER FOR THE TRANSPORTATION DEPARTMENT'S PUBLIC COUNSEL IN THE CASE HAS A BROTHER WHO IS A MEMBER OF THE AIR LINE PILOTS ASSOCIATION THE PILOTS UNION IS OPPOSED TO ATX THE PUBLIC COUNSEL IS SUPPOSED TO REPRESENT THE PUBLIC INTEREST IN SUCH PROCEEDINGS CAPT RANDOLPH BABBITT PRESIDENT OF THE UNION SAID HE WAS OUTRAGED AT THE DEPARTMENT'S OFFER OF A SECOND HEARING HE SAID THE PUBLIC RECORD CLEARLY AND UNEQUIVOCALLY DEMONSTRATES THAT MR LORENZO FAILS ON TWO OF THE THREE FITNESS TESTS REQUIRED BY LAW THE TWO TESTS INCLUDE MANAGERIAL COMPETENCE AND A DISPOSITION TO COMPLY WITH RULES THE THIRD TEST FOR FITNESS IS FINANCIAL WHEREWITHAL MR LORENZO'S ABILITY TO FINANCE HIS VENTURE HAS BEEN UNQUESTIONED AND IN JANUARY HE BROUGHT IN ADDITIONAL INVESTORS CUTTING HIS 77 STAKE TO BELOW 30 DAVID KIRSTEIN MR LORENZO'S ATTORNEY SAID ATX HASN'T DECIDED WHETHER TO ACCEPT THE OFFER OF A NEW HEARING AND IS CONSIDERING ALL ITS OPTIONS 9403300113 940330 CORPORATE FOCUS ATLANTIC RICHFIELD'S NEXT CEO SETS OVERSEAS EXPANSION LESS COSTLY MOVES ABROAD AS WELL AS CUTBACKS ARE LIKELY AS OIL PRICES FALL BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES AS NEWS ROLLED IN THIS PAST WEEKEND OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES' WOES AND A LIKELY TUMBLE IN OIL PRICES ATLANTIC RICHFIELD CO'S MIKE R BOWLIN TOOK A MOMENT TO REFLECT WORKING AT HOME THE MAN WHO WILL BECOME ARCO'S NEW CHIEF EXECUTIVE OFFICER PORED OVER REPORTS OF OIL PRICES AND COMPANY STOCK PRICES FROM ALMOST A DECADE AGO WHEN HIS PREDECESSOR LODWRICK M COOK TOOK OVER AT ARCO THEN AS NOW PRICES TUMBLED AND MR COOK THEN BARELY KNOWN BEYOND COMPANY DOORS SURPRISED ANALYSTS BY SLIMMING ARCO PRODUCING MORE WITH LESS AND SEEMINGLY MOVING THE COMPANY FROM STRENGTH TO STRENGTH ONCE AGAIN ARCO FACES CONSIDERABLE UNCERTAINTIES WITH A NEW LEADER AND AGAIN ARCO SEEMS POISED TO SLIM DOWN BUT BEYOND THAT THE STRATEGIES ARE VERY DIFFERENT THIS TIME THE 51YEAROLD MR BOWLIN AND ARCO WHICH HAS THE STRONGEST US FOCUS OF THE MAJOR OIL PRODUCERS ARE MOVING AWAY FROM THE US ROOTS AND INTO LESS COSTLY INTERNATIONAL EXPLORATION AND PRODUCTION A CHANGE THAT'S INCREASINGLY IMPORTANT AS OIL PRICES DWINDLE UNDER MR BOWLIN CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER ARCO WILL IN EFFECT ATTEMPT TO SEESAW FROM A DOMESTIC FOCUS TO LARGE FOREIGN INVESTMENTS WITHOUT A BRUISING BUMP MR BOWLIN WAS ELECTED MONDAY TO THE CEO'S POST EFFECTIVE JULY 1 HE WILL CONTINUE TO HOLD HIS CURRENT POSITIONS OTHER MAJOR OIL COMPANIES HAVE FOR SOME TIME BOOSTED THEIR EXPLORATION AND PRODUCTION EFFORTS ABROAD WHERE COSTS ARE LOWER AND CHANCES OF A MAJOR FIND OFTEN ARE THOUGHT TO BE HIGHER BUT ARCO HAS A SPECIAL NEED THE ALASKAN OIL RESOURCES THAT SUPPORT THE LOS ANGELESBASED COMPANY'S STRONG HOLD ON GASOLINE MARKETS WEST OF THE ROCKY MOUNTAINS ARE DECLINING WHERE WILL PETROLEUM AND PROFIT FLOW FROM NEXT MR BOWLIN WHO UNTIL RECENTLY HEADED THE COMPANY'S GROWING INVESTMENT EFFORTS OVERSEAS SAID THAT EFFORT WILL CONTINUE TO EXPAND I'M CONVINCED THAT IF YOU LOOK AT ARCO FIVE TO 10 YEARS FROM NOW YOU'LL SEE MUCH MORE OF OUR OPERATIONS OVERSEAS HE SAID HIS GOAL IS TO BOOST OVERSEAS INVESTMENTS TO THE POINT WHERE THEY ARE MAKING A PROFIT CONTRIBUTION ROUGHLY EQUAL TO ARCO'S RETURN FROM ALASKA THAT'S A TALL ORDER CALLING FOR ABOUT 500 MILLION A YEAR IN PROFIT LAST YEAR ARCO'S OVERSEAS OIL AND GAS BUSINESS PRODUCED A 17 MILLION AFTERTAX LOSS UNDER MR BOWLIN'S DIRECTION ARCO'S INTERNATIONAL OPERATIONS STARTING IN THE LATE 1980S TURNED TO THE NORTH SEA AND THEN TO INDONESIA AND CHINA THE RESULT SO FAR HAS BEEN LOTS OF NATURAL GAS BUT CRUDEOIL FINDS HAVE BEEN WANTING WE WOULD HAVE BEEN MUCH HAPPIER IF WE HAD HAD A MAJOR GRASSROOTS DISCOVERY IN INTERNATIONAL MR BOWLIN SAID BUT HE ADDED THAT MAJOR DEVELOPMENTS IN THE NORTHWEST JAVA AND PAGERUNGAN REGIONS OFF INDONESIA AND THE YACHENG FIELD OFF CHINA ARE EXPECTED TO BOOST THE COMPANY'S INTERNATIONAL RESULTS ANALYSTS SPECULATE THAT MR BOWLIN IS LIKELY TO ACCELERATE THINGS OVERSEAS OVER THE LAST SEVERAL YEARS ARCO HAS BEEN TRYING TO GROW THE INTERNATIONAL SIDE ON ITS OWN SAID MICHAEL YOUNG AN ANALYST AT SMITH BARNEY SHEARSON INC MY SENSE IS THAT SOMEWHERE DOWN THE ROAD ARCO IS GOING TO WANT TO GROW THAT SIDE AT A FASTER PACE WHICH MEANS ACQUISITIONS ARCO FLIRTED WITH THIS APPROACH IN 1988 THE YEAR MR BOWLIN TOOK OVER RESPONSIBILITY FOR INTERNATIONAL OPERATIONS WITH A 700 MILLION ACQUISITION OF TRICENTROL PLC A BRITISHBASED OIL AND GAS PRODUCER THAT FOLLOWED A BRIEF AND FAILED RUN AT ANOTHER BRITISH PRODUCER SINCE THEN HOWEVER ARCO HAS FOCUSED ON EXPLORATION IT RENEWED EFFORTS IN ALASKA BUT BY LAST YEAR THE RESULTS PROVED DISAPPOINTING OF 13 WELLS DRILLED LAST SEASON ONLY ONE FOUND COMMERCIAL QUANTITIES OF OIL THOSE DRY HOLES HAVE CLEARLY TEMPERED ARCO'S ENTHUSIASM AS TO HOW THEY SHOULD PROCEED IN ALASKA SAID FREDERICK LEUFFER AN ANALYST AT BEAR STEARNS & CO ARCO SLATED A MERE FOUR EXPLORATORY WELLS IN ALASKA THIS YEAR AND SLASHED THE EXPLORATION BUDGET THERE TO 90 MILLION FROM LAST YEAR'S 210 MILLION NOW WITH NEWLY WEAK OIL PRICES THOSE NUMBERS TOO LIKELY WILL BE REDUCED IN A SWIFT REACTION TO FALLING PRICES EARLIER THIS WEEK ARCO SAID IT PLANS SOON TO TEMPORARILY SUSPEND DEVELOPMENT DRILLING IN MOST OF ITS NORTHERN ALASKAN OIL FIELDS ON MONDAY CRUDE OIL PRICES TUMBLED WORLDWIDE AND IN NEW YORK THE NEARTERM MAY CONTRACT CLOSED AT 1408 A BARREL OFF 105 FROM ITS FRIDAY CLOSE YESTERDAY PRICES RALLIED SLIGHTLY RECOVERING BY 24 CENTS TO CLOSE AT 1432 A BARREL OPEC FAILED TO REACH AGREEMENT ON PLANS THAT WOULD HAVE CURTAILED PRODUCTION WORLDWIDE AND WOULD HAVE THUS BOOSTED PRICES ARCO'S STOCK PRICE SLID 625 CENTS A SHARE YESTERDAY CLOSING AT 97375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AFTER FALLING 3 A SHARE ON MONDAY FOR THE MOMENT ARCO IS LOOKING FOR OTHER WAYS TO PARE ITS 19 BILLION CAPITAL SPENDING BUDGET FOR THIS YEAR MR BOWLIN SAID A COMPANYWIDE APPRAISAL IS UNDER WAY AND SOME INVESTMENTS MAY BE SLOWED STAFF REDUCTIONS ARE LIKELY TO BE A PART OF THE PROCESS BOTH AT OPERATING AND CORPORATE LEVELS SAID MR BOWLIN DECLINING TO ELABORATE SUCH REDUCTIONS WOULD FALL ON AN ALREADYTRIMMED WORK FORCE AND WOULD FOLLOW CUTS OF SOME 1300 EMPLOYEES IN THE COMPANY'S NONALASKAN US OPERATIONS ARCO CURRENTLY HAS ABOUT 25000 EMPLOYEES WORLDWIDE UNDER THE PRESSURE OF LOWER OIL PRICES THE ATTRACTIONS OF OVERSEAS OPERATIONS ARE CONSIDERABLE AVERAGE PRICES LAST YEAR FOR CRUDE OIL AND NATURAL GAS SOLD BY ARCO'S FOREIGN OPERATIONS AVERAGED ABOUT 40 HIGHER THAN THE COMPANY'S AVERAGE DOMESTIC PRICES WHERE POTENTIAL US EXPLORATION ACREAGE FOR THE MOST PART HAS BEEN DRILLED ATTRACTIVE AREAS REMAIN IN OTHER PARTS OF THE WORLD AND AS MR BOWLIN NOTED DISCOVERIES SUCH AS ARCO'S IN INDONESIA AND CHINA PUT IT AT THE DOORSTEP OF SOME OF THE WORLD'S FASTESTGROWING MARKETS AS ALASKAN PRODUCTION DECLINES IN COMING YEARS HOWEVER ARCO AND MR BOWLIN WILL HAVE TO WORK HARD TO RETAIN INVESTOR FAITH THAT NEW RESERVES AND NEW BUSINESS WILL BE FOUND FOR THE MOMENT THERE HAS BEEN SOME CONCERN ABOUT THE COMPANY'S DIVIDEND AND THAT HAS HURT THE STOCK PRICE NOTED MR LEUFFER OF BEAR STEARNS WHO IS RECOMMENDING PURCHASE OF ARCO SHARES WHOSE PRICE HAS DRIFTED FROM A HIGH OF 12775 ABOUT A YEAR AGO MR LEUFFER THINKS THE DIVIDEND A HEFTY 1375ASHARE QUARTERLY PAYOUT WILL BE MAINTAINED HOWEVER AT SOME POINT COMPANY EARNINGS WILL HAVE TO CATCH UP HE SAID IN THE SOONTOBECOMPLETED FIRST QUARTER ARCO'S PROFIT IS AGAIN EXPECTED TO FALL SHORT OF ITS DIVIDEND WE'D BE DELIGHTED IF THEY MADE AS MUCH AS THEIR DIVIDEND BUT THEY WON'T SAID MR YOUNG OF SMITH BARNEY MR YOUNG FORECASTS THAT ARCO'S FIRSTQUARTER NET INCOME WILL TOTAL ABOUT 95 CENTS A SHARE FIRSTQUARTER NET INCOME LAST YEAR WAS 260 MILLION OR 160 A SHARE ON 451 BILLION IN REVENUE A COMPANY SPOKESMAN SAID ARCO'S BOARD MAKES A DIVIDEND DECISION EACH QUARTER HOWEVER THE SPOKESMAN SAID CLEARLY WE HAVE THE FINANCIAL RESOURCES TO CONTINUE THE DIVIDEND THROUGH A SUSTAINED PERIOD OF LOW OIL PRICES 9403300112 940330 BUSINESS BRIEF TWA EXPANDS FARE CUTS TO ALL MARKETS IN US COVERING 1200 DESTINATIONS TRANS WORLD AIRLINES INC EXPANDED PREVIOUSLY ANNOUNCED FARE CUTS TO ALL OF ITS DOMESTIC MARKETS PUSHING RIVAL CARRIERS TO MATCH THE DISCOUNTS LAST WEEK TWA CUT ROUNDTRIP EXCURSION FARES AN AVERAGE OF 35 IN RESPONSE TO A SALE INITIATED BY USAIR A UNIT OF USAIR GROUP INC TWA YESTERDAY EXPANDED THOSE DISCOUNTS TO ITS 1200 US MARKETS INCLUDING HAWAII AND SAN JUAN PUERTO RICO MOST MAJOR AIRLINES MATCHED THE DISCOUNTS IN COMPETITIVE MARKETS PASSENGERS SEEKING THE LESS EXPENSIVE TWA TICKETS MUST PURCHASE THEM BY THURSDAY THE LOWER FARES APPLY TO FLIGHTS BETWEEN APRIL 19 AND JUNE 15 TICKETS ARE NONREFUNDABLE AND REQUIRE A SATURDAY NIGHT STAYOVER WHILE TWA'S EXPANDED OFFER EXPIRES THIS WEEK SOME INDUSTRY OBSERVERS SAID THE INITIATIVE COULD SIGNAL EVEN MORE PRICECUTTING IT CERTAINLY FOREBODES THE POSSIBILITY OF AN OUTANDOUT FARE WAR SAID LEE HOWARD PRESIDENT OF AIRLINE ECONOMICS INTERNATIONAL IN WASHINGTON WE'RE CREEPING UP NOW INTO PEAK SEASON AND NO CARRIER IS GOING TO ALLOW THEIR TRAFFIC TO BE STOLEN AIRLINE BOOKINGS HAVE BEEN WEAK RECENTLY AS WINTER AND EARLY SPRING ARE TRADITIONALLY SLOWER SEASONS MOREOVER CONSUMERS APPEAR TO BE HOLDING BACK UNTIL THEY SEE SIGNS OF FURTHER DISCOUNTING EVERYBODY USUALLY WAITS FOR THE NEXT FARE WAR SAID DAVID SPARKMAN AN INDUSTRY ANALYST AT AIRLINE FORECASTING AND ECONOMICS IN WASHINGTON HE ADDED THAT THE DURATION OF TWA'S LESS EXPENSIVE FLIGHTS THROUGH MIDJUNE PRESENTS A MUCH LONGER WINDOW THAN WE USUALLY SEE TWA WHICH EMERGED FROM BANKRUPTCYLAW PROTECTION IN NOVEMBER HAS BEEN SEARCHING FOR WAYS TO COME UP WITH CASH THE AIRLINE RECENTLY SLASHED THE NUMBER OF ITS DAILY DEPARTURES FROM ATLANTA TO 11 FROM 57 EFFECTIVE JUNE 1 ON MONDAY THE NATION'S SEVENTHLARGEST CARRIER NAMED JEFFREY H ERICKSON CHIEF EXECUTIVE OF RENO AIR AS ITS PRESIDENT AND CHIEF OPERATING OFFICER THE AIRLINE SUFFERED A MANAGEMENT SHAKEUP THREE MONTHS AGO WHEN BOTH ITS CEO AND COVICE CHAIRMAN RESIGNED AFTER MORE THAN 20 YEARS WITH THE COMPANY 9403300111 940330 LEISURE & ARTS BAD GIRLS' MAKE BAD' ART BY AMY GAMERMAN NEW YORK I'M A NICE GIRL I OWN SEVERAL HEADBANDS I DON'T WEAR MY EARRINGS IN MY NOSE AND I ALWAYS LISTEN TO MY MOTHER I'M NOT VERY POPULAR RIGHT NOW NO MORE NICE GIRLS CRIES THE FLIER FROM ABC NO RIO A LOWER EAST SIDE GALLERY BAD GIRLS LEERS THE REDLIPPED LOGO EMBLAZONED ON THE WALL OF SOHO'S NEW MUSEUM OF CONTEMPORARY ART FEELING THREATENED I PUT ON MY PUMPS AND PEARL EARRINGS AND WENT TO FIND OUT WHAT BEYOND TONYA HARDING SEPARATES THE BAD FROM THE NICE AT THE NEW MUSEUM IT'S DIRECTOR MARCIA TUCKER'S MOTHER WHATEVER SHE SAID I VOWED NEVER TO DO MS TUCKER DECLARES IN HER PROGRAM NOTES MS TUCKER FOUND SO MANY ARTISTS WHO WERE ALSO REBELLING AGAINST THEIR MOTHERS OR AT LEAST DEFYING THE NEVER WEAR MORE THAN THREE COLORS AT ONCE RULE THAT SHE HAS HAD TO STAGE HER SHOW IN TWO PARTS PART ONE ENDED LAST MONTH PART TWO CAN BE SEEN THROUGH APRIL 10 I GOT A CLUE INTO THE DEEPER THINKING BEHIND BAD GIRLS FROM THE YOU'RE MORE APT TO BE A BAD GIRL IF QUIZ POSTED AT PART ONE ONE OF THE FEW PRINTABLE OPTIONS SOMEONE MADE YOUR HAIR A PRIMARY COLOR AND YOU DIDN'T SUE SINCE NO ONE EVER HAS I CHECKED OUT THE LESS APT LIST YOU THINK WRIST CORSAGES MAKE SENSE IT READ YOU COULD SURVIVE IN THE SUBURBS WITHOUT TAKING PROZAC WONDERING IF I COULD SURVIVE THIS SHOW WITHOUT IT I TURNED TO ELIZABETH BERDANN'S TOPLESS HALL OF FAME A WALL OF COPPER DISCS PAINTED WITH PAIRS OF SWOLLEN BREASTS ACROSS THE WAY FROM MS BERDANN'S CELEBRATION OF BEVERLEE HILLS AND LOTTA TOPP ELAINE TIN NYO'S DAIKON AND TWISTING CARROT PHOTOGRAPHS CELEBRATED THE EROTIC ROOT VEGETABLE GROWN ESPECIALLY FOR HER BY AN ORGANIC FARMER MORE COLORFUL IF LOWER IN FIBER WAS PORTIA MUNSON'S 100 ARTIFICIAL PINK PROJECT A LONG TABLE COMPLETELY COVERED WITH PINK COMBS PINK MIRRORS PINK BOTTLES PINK SPOONS ET CETERA MS MUNSON BEGAN COLLECTING PINK OBJECTS IN REACTION TO HER MOTHER WHO TRIED TO DISCOURAGE HER FROM WEARING PINK AS A CHILD TAKE AWAY THE PINK PLASTIC PHALLUSES AND PINK PROJECT LOOKS A LOT LIKE A NICE GIRL'S REVENGE ON HER POLITICALLY CORRECT PARENT CAMMIE TOLOUI ON THE OTHER HAND LOOKS A LOT LIKE A BONA FIDE BAD GIRL A STRIPPER/PHOTOGRAPHER MS TOLOUI TOOK HER CAMERA INTO HER PLACE OF BUSINESS AND SNAPPED PICTURES OF HER PATRONS YOU CAN OGLE HER SLIDESHOW THE PLEASURE PALACE WHICH HAS BEEN HELD OVER TO PART TWO THROUGH SETS OF PEEPHOLES BUT BAD GIRLS COME IN A LOT OF PACKAGES EVEN MEN CAN QUALIFY IF THEY ARE VERY GOOD BOYS CHUCK NANNEY'S LIFESIZE PHOTOGRAPHS OF HIMSELF WEARING GIRLISH DRESSES WON HIM HONORARY BAD GIRL STATUS SO DID KEITH BROADWEE'S PHOTOGRAPHS OF PLASTIC DOLLS WEDGED BETWEEN HIS THIGHS WHICH THE MUSEUM CROWS TURN PHALLIC POWER' INTO HARMLESS FUN THE HARMLESS FUN CONTINUES IN PART TWO WHICH KICKS OFF WITH JUDITH WEINPERSON'S SELFEXPLANATORY BLUE PENIS ALTHOUGH REPRESENTATIONS OF THE MALE MEMBER OUTNUMBER THE FEMALE 36 TO TWO HERE A GUY STILL HAS TO PUT ON A DRESS TO CRASH THIS PARTY IN HIS LUSH ANGELS DESCENDING A STAIRCASE YASUMASA MORIMURA SHOWS MULTIPLE PHOTOGRAPHIC IMAGES OF HIMSELF CLAD IN FLOWING PRERAPHAELITESTYLE GOWNS AND VARIOUS WIGS THE ONLY FEMALE BAD GIRL WHO SEEMS TO ENJOY DRESSING UP IS BEVERLY SEMMES HER ENORMOUS YELLOW POOL WHICH SPILLS ACROSS THE FLOOR OF THE GALLERY IS A BLACK VELVET AND YELLOW ORGANZA GOWN FOR A VERY BIG BAD GIRL WITH A DATE FOR THE PROM ALL IT NEEDS IS A GIANT WRIST CORSAGE STILL IT PROBABLY WOULDN'T APPEAL TO THE HEROINE OF SUSAN SILAS'S THURBER CARNIVAL/FABLES FOR OUR TIME A PAINTING WHICH TAKES ITS TEXT FROM JAMES THURBER'S MORBID RETELLING OF THE LITTLE RED RIDING HOOD STORY IN IT THE LITTLE GIRL PULLS AN AUTOMATIC OUT OF HER BASKET AND SHOOTS THE WOLF DEAD MORAL THE PAINTING READS IT IS NOT SO EASY TO FOOL LITTLE GIRLS NOWADAYS AS IT USED TO BE CERTAINLY YOU CAN'T FOOL THIRDGRADER PHYLLIS MICHELLE GREEN ONE OF A NUMBER OF LITTLE GIRLS AND A FEW BOYS WHOSE WORK IS INCLUDED HERE PERHAPS TO PROVE THAT THE BAD GIRLS BEHIND BAD GIRLS AREN'T AGEIST IN ANY EVENT IN THIS ART NICE GIRLS FINISH FIRST MS GREEN DEPICTS HER BAD GIRL PUFFING ON A CIGARETTE AND BUBBLING THE WORDS I'M NOT GOOD BECAUSE I DROPED SIC OUT OF SCHOOL WHILE HER GOOD GIRL IS HEADED FOR COLLEGE IF YOU'RE HUNGRY FOR MORE BAD MEDIA YOU CAN CHECK OUT THE MUSEUM'S BAD GIRLS FILM SERIES OR HEAD FOR THE KNITTING FACTORY A NEARBY PERFORMANCE SPACE TO HEAR BADGIRL BANDS SUCH AS KISSYFUR AND HOMER EROTIC PERFORM THE MUSEUM EVEN PROVIDES A SHELFFULL OF BGAPPROVED READING MATERIAL WHICH YOU MAY PERUSE FROM A WHOOPEECUSHIONTOPPED STOOL NOTHING HAPPENS WHEN YOU SIT ON IT LIKE MOST OF THE SHOW THE CUSHIONS HAVE NO OOMPH OVER AT NO MORE NICE GIRLS IN THE TINY ABC NO RIO GALLERY ON NOTVERYNICE RIVINGTON STREET THROUGH APRIL 1 THE MOOD IS GRIMMER PERHAPS BECAUSE THERE'S NO HEAT BEYOND THE LOCKED STEEL DOOR TWO BAD GIRLS IN HATS AND COATS SAT HUDDLED OVER A SPACE HEATER TALKING GASP ABOUT BOYS CERTAIN DYSFUNCTIONAL ASPECTS OF A RELATIONSHIP PEOPLE GET TOO COMFORTABLE WITH ONE SIGHED SHE'S PROBABLY BEEN LOOKING AT THE BAD ART TOO LONG JENNIE BOOTH'S DRAWING OF A TWOHEADED WOMAN IS ALSO PONDERING THE STRANGENESS OF MAN IT'S ONE OF THE MORE BENIGN ARTWORKS HERE MANY OTHERS FEATURE AVENGING WOMEN WHO ARE SEEN USING KNIVES TO COPE WITH THEIR DYSFUNCTIONAL RELATIONSHIPS AN EXCEPTION IS NANCY FLOYD WHO PHOTOGRAPHS GIRLS WITH GUNS AT A YOUNG AGE SHE LEARNED WHAT STOPPING POWER IS A CAPTION READS BY NOW SO HAD I AN EXTENDED VACATION IN SUBURBIA WAS STARTING TO SOUND LIKE JUST THE TICKET ON MY WAY OUT THE BAD GIRL IN CHARGE HANDED ME A LIST OF UPCOMING EVENTS AND THANKED ME FOR STOPPING BY SHE COULDN'T HAVE BEEN NICER I DECIDED NOT TO SAY HAVE A BAD DAY 9403300110 940330 LEISURE & ARTS BUSINESS BOOKSHELF STEVE ROSS PORTRAIT OF A HIGHFLIER BY LAURA LANDRO IN MASTER OF THE GAME SIMON & SCHUSTER 395 PAGES 25 CONNIE BRUCK'S NEW BOOK ABOUT THE LATE STEVEN J ROSS HIS ATTORNEY AND CONFIDANTE ARTHUR LIMAN SUMS HIM UP APTLY THE LAST GREAT PASHA OF AMERICAN BUSINESS IN A REMARKABLE RAGTRADE TO RICHES STORY MR ROSS ROSE FROM A GARMENT INDUSTRY SLACKS SALESMAN TO THE OPERATOR OF A CHAIN OF FUNERAL HOMES AND PARKING LOTS AND ULTIMATELY TO THE HELM OF TIME WARNER INC NOW THE WORLD'S LARGEST ENTERTAINMENT COMPANY THOUGH ALWAYS DOGGED BY ALLEGATIONS OF FINANCIAL CHICANERY AND LINKS TO ORGANIZED CRIME HE WAS THE ORIGINAL TEFLON EXECUTIVE BASKING IN HIS REPUTATION AS A SHREWD DEALMAKER AND BRILLIANT VISIONARY HE USED THE CORPORATE TREASURY TO FINANCE HIS LAVISH LIFESTYLE SPREADING THE WEALTH AMONGST A CADRE OF LOYAL EXECUTIVES AND HOLLYWOOD FIGURES WHO TRULY BELIEVED MR ROSS WAS THE COMPANY MS BRUCK ARTFULLY RECONSTRUCTS MR ROSS'S RISE WHICH STARTED WHEN HE MARRIED INTO THE FAMILY THAT OWNED THE FUNERAL BUSINESS SHE PAINTS COLORFUL PORTRAITS OF THE ROGUES HE SURROUNDED HIMSELF WITH IN HIS EARLY DAYS AS A CARDCOUNTING GAMBLER AND RACONTEUR AMONG THEM JAY EMMETT HIS HIGHLIVING BEST FRIEND WHO ALONG WITH FAITHFUL ACCOUNTANT SOLOMON WEISS TOOK THE RAP FOR THE WESTCHESTER PREMIER THEATER KICKBACK SCANDAL IN THE EARLY 1980S LIKE THE PROSECUTORS WHO CALLED MR ROSS THE REAL CULPRIT IN THE WESTCHESTER CASE MS BRUCK TRIES VALIANTLY TO PROVE THAT WAS THE CASE WITHOUT SUCCESS MR WEISS WHO WAS SENTENCED TO FIVE YEARS COMMUNITY SERVICE AND FINED APPEARS TO BE PREPARED TO TAKE THE TRUTH TO HIS GRAVE AND MR ROSS HAS ALREADY TAKEN IT TO HIS THE BOOK DRAGS A BIT AS MS BRUCK RECONSTRUCTS MINUTE DETAILS OF THE HUGE CASHSKIMMING FRAUD BUT SHE DOES ESTABLISH THE GROUNDWORK FOR A PATTERN WHICH WAS TO CONTINUE FOR THE REST OF MR ROSS'S LIFE HE WAS ALWAYS ABLE TO WEASEL OUT OF TROUBLE OR AS ONE ASSOCIATE SAID HE WAS ALWAYS INSULATED YOU COULD NEVER TRACE IT UP MASTER OF THE GAME IS AT ITS MOST COMPELLING WHEN MS BRUCK EXPLORES THE WAY MR ROSS LIVED HIS LIFE CONDUCTED HIS PERSONAL AFFAIRS AND CATAPULTED HIMSELF INTO THE BIG LEAGUES AFTER THE CANNY PURCHASE OF WARNER BROSSEVEN ARTS THOUGH SHE CLEARLY ADMIRES HIS CONSIDERABLE TALENTS SHE WAS NOT TAKEN IN BY THEM AT ONCE CHARMING SOLICITOUS AND FUNNY HE COULD ALSO BE REMOTE RUTHLESS AND DUPLICITOUS AND ON THE WAY UP THE LADDER HE ABANDONED OR HURT AS MANY PEOPLE AS HE HELPED HIS RELENTLESS PURSUIT OF GLITZ AND GLAMOUR COLORED ALL HIS DEALINGS AS MS BRUCK POINTS OUT MANY OF HIS BUSINESS DECISIONS WERE DISASTROUS AND HIS ACTUAL MANAGEMENT SKILLS QUESTIONABLE TAKE THE DEBACLE AT ATARI THE VIDEOGAME BUSINESS THAT BECAME WARNER'S BIGGEST PROFITMAKER IN THE EARLY 1980S BEFORE MISMANAGEMENT BROUGHT IT CRASHING DOWN MR ROSS IN HIS CLASSIC STRATEGY OF GIVING MANAGERS BROAD AUTONOMY HAD VIRTUALLY NO CONTROLS AT THE COMPANY AND IGNORED OR DENIED THE SIGNS OF IMPENDING DISASTER HE DID HOWEVER MANAGE TO UNLOAD A HUGE AMOUNT OF STOCK NOT LONG BEFORE IT TANKED ON ATARI'S MASSIVE LOSSES EVEN AS THE VIDEOGAME BUSINESS WAS HEADING FOR A FREEFALL MR ROSS GAVE STEVEN SPIELBERG AN ASTONISHING 23 MILLION FOR THE VIDEO GAME RIGHTS TO HIS MOVIE ET A GAMBLE THAT HELPED PUT THE FINAL NAIL IN ATARI'S COFFIN IT WAS THROUGH SUCH GESTURES THAT MR ROSS BUILT THE LOYALTY AND ADMIRATION OF MR SPIELBERG AND BARBRA STREISAND WHO WAS ONLY TOO HAPPY TO TAKE HIS LAVISH GIFTS OF ART AND FURNITURE ACCORDING TO MS BRUCK FOR HIMSELF AND HIS TEAM MR ROSS AND HIS SHADOWY ADVISER ODED ABOODI DESIGNED THE MOST GENEROUS COMPENSATION SYSTEM IN AMERICAN BUSINESS INCLUDING A FLEET OF PLANES THAT WOULD FLY MR SPIELBERG'S DOGS CROSSCOUNTRY MS BRUCK PULLS NO PUNCHES SHE PORTRAYS MR LIMAN THE ATTORNEY AS A TOADYING SYCOPHANT SO BLINDED BY LOYALTY TO MR ROSS THAT HE WAS MORE COHORT THAN COUNSEL BENDING THE LAW TO NEARBREAKING POINT TO PROTECT MR ROSS FROM ANSWERING FOR ANY NUMBER OF BREACHES OF FIDUCIARY DUTY TO SHAREHOLDERS AND SHE DOES NOT PAINT A PRETTY PICTURE OF MR ROSS'S HIGHHANDED RAPACIOUS THIRD WIFE COURTNEY SALE DESCRIBING THE BOND BETWEEN THEM AS A SHARED DEDICATION TO THE ACQUISITION OF MATERIAL OBJECTS PERHAPS FEELING IT ONLY FAIR TO LET MR ROSS'S FANS HAVE THEIR DUE MS BRUCK SPENDS AN INORDINATE AMOUNT OF TIME DESCRIBING THE PAEANS DELIVERED AT HIS FUNERAL AND MEMORIAL SERVICES BUT SHE ALWAYS BRINGS THE READER BACK TO HER BASIC POINT THAT MR ROSS USUALLY BOUGHT SUCH FEALTY AT THE EXPENSE OF HIS SHAREHOLDERS THE ONLY EXECUTIVE WHO EVER CHALLENGED MR ROSS'S FREESPENDING WAYS AND HIS LAISSEZFAIRE MANAGEMENT WAS CHRISCRAFT CHAIRMAN HERBERT SIEGEL WHO BOUGHT A BIG STAKE IN WARNER AS A WHITE KNIGHT WHEN RUPERT MURDOCH WAS MAKING A RUN AT IT MR SIEGEL'S EFFORTS TO CLEAN UP WARNER'S TROUBLED OPERATIONS AND CUT COSTS AND PERKS NEARLY DROVE MR ROSS CRAZY THE TWO ENDED THEIR ASSOCIATION AFTER A BITTER CORPORATE FEUD AS FORMER SENATOR ABRAHAM RIBICOFF A CHRISCRAFTDESIGNATED DIRECTOR OF WARNER WHO FINALLY RESIGNED IN DISGUST PUT IT IN A DEPOSITION YOU HAVE A PERSON WHO HAS EXCEEDED HIS POWER WITH THE GREATEST OF ARROGANCE AND YOU HAVE A BUNCH OF MYRMIDONS ON THAT BOARD COMPLETELY MANIPULATED BY STEVE ROSS MR ROSS'S CROWNING GLORY WAS WARNER'S MERGER WITH TIME INC WHICH EVEN THOUGH TIME ACQUIRED WARNER LEFT MR ROSS IN CHARGE AND WEALTHIER THAN EVER MS BRUCK WHO COVERED THE TIME WARNER MERGER AND ITS AFTERMATH FOR THE NEW YORKER WON MR ROSS'S COOPERATION FOR THE BOOK LARGELY ON THE STRENGTH OF THOSE ARTICLES WHICH PORTRAYED HIM AS A NEARGENIUS AND MADE THE TIME EXECUTIVES LOOK BUMBLING AND VENAL MS BRUCK APPEARS TO BE MAKING A CAREER OF PROFILING CONTROVERSIAL BUSINESS FIGURES WHO BEND ALL THE RULES TO THEIR OWN ENDS HER LAST BOOK THE PREDATOR'S BALL FOLLOWED THE CAREER OF FINANCIER MICHAEL MILKEN UNLIKE MR MILKEN MR ROSS WAS NEVER CONVICTED OF ANYTHING BUT AS MS BRUCK POINTS OUT IN THIS BOOK THEY WERE KINDRED SPIRITS AFTER MR LIMAN INTRODUCED THEM IN MID1982 SHE SAYS THEY DEVELOPED AN ENORMOUS MUTUAL ADMIRATION AND THE TWO ATTEMPTED TO ENGINEER A LEVERAGED BUYOUT OF WARNER ULTIMATELY MR ROSS COULDN'T BEAT THE ODDS ON THE FINAL CRAP GAME AT THE PEAK OF HIS POWER HE WAS FELLED BY COMPLICATIONS OF SURGERY FOR PROSTATE CANCER IRONICALLY THE SAME DISEASE MR MILKEN IS BEING TREATED FOR IN THE END MS BRUCK'S JUDGMENT OF MR ROSS IS THAT THE MYTH HE CREATED FOR HIMSELF KEPT PEOPLE FROM SEEING THE REALITY FOR ALL HIS MASTERY OF THE GAME MR ROSS WAS FINALLY PLAYING ONLY FOR HIMSELF MS LANDRO IS A SENIOR EDITOR IN CHARGE OF THE JOURNAL'S MEDIA AND MARKETING COVERAGE 9403300109 940330 MARKETING & MEDIA MIRAMAX DISCOVERS DRAWBACKS IN BEING SUBSIDIARY OF DISNEY FORMER INDEPENDENT COMPANY LOSES RIGHTS TO DISTRIBUTE FILM WITH NC17 RATING BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD THE MAVERICK FILMMAKERS AT TINY MIRAMAX FILMS ARE DISCOVERING A DRAWBACK TO BEING OWNED BY ENTERTAINMENT GIANT WALT DISNEY CO MIRAMAX SAID YESTERDAY THAT IT LOST THE RIGHTS TO DISTRIBUTE YOU SO CRAZY A SOMETIMES RAUNCHY NC17 RATED FILM STARRING COMEDIAN MARTIN LAWRENCE BECAUSE THE PRODUCERS WANTED TO HAVE IT RELEASED WITHOUT A RATING INDEPENDENT FILM COMPANIES ARE PERMITTED TO RELEASE UNRATED FILMS BUT MAJOR STUDIOS AND THEIR SUBSIDIARIES THAT ARE MEMBERS OF THE MOTION PICTURE ASSOCIATION OF AMERICA AREN'T MIRAMAX WHICH WAS ACQUIRED BY DISNEY LAST MAY SAID DISNEY'S REPUTATION AS A PURVEYOR OF ALLFAMILY ENTERTAINMENT WASN'T A FACTOR THE FILM'S PRODUCER TIME WARNER INC'S HBO INDEPENDENT PRODUCTIONS SAID YESTERDAY THE FILM WILL BE RELEASED ON APRIL 27 BY INDEPENDENT FILM COMPANY SAMUEL GOLDWYN CO GOLDWYN ISN'T A MPAAMEMBER COMPANY AND FREQUENTLY RELEASES ARTHOUSE MOVIES LIKE THE WEDDING BANQUET WITHOUT RATINGS EXECUTIVES AT GOLDWYN WHICH BID FOR THE FILM BUT LOST OUT TO MIRAMAX LAST FALL CHEERED THE MOVE AS A VICTORY FOR THE SHRINKING RANKS OF HOLLYWOOD'S INDEPENDENT FILM COMPANIES THE LUXURY OF BEING A TRUE INDEPENDENT IS THAT WE ARE FREE TO RELEASE MOVIES AS WE SEE FIT SAID TOM ROTHMAN PRESIDENT OF WORLDWIDE PRODUCTION WE LOVE THIS MOVIE IT'S HILARIOUS AND WE THINK IT'LL MAKE A LOT OF MONEY WHEN DISNEY ACQUIRED MIRAMAX EXECUTIVES AT BOTH COMPANIES INSISTED THAT MIRAMAX WOULD BE FREE TO CONTINUE TO RELEASE CONTROVERSIAL FILMS BUT THIS INCIDENT SUGGESTS THAT BEING A PART OF AN MPAA COMPANY HAS ITS DRAWBACKS OVER THE YEARS MIRAMAX HAS GAINED AN ENORMOUS AMOUNT OF PUBLICITY FROM EXCHANGING BARBS WITH THE MPAA AFTER ITS FILMS TIE ME UP TIE ME DOWN AND THE COOK THE THIEF HIS WIFE AND HER LOVER RECEIVED X RATINGS FOR EXAMPLE MIRAMAX RELEASED THEM BOTH WITHOUT RATINGS BOB WEINSTEIN COCHAIRMAN OF MIRAMAX SAID THE COMPANY REALIZED IT WOULD LOSE THE POWERFUL OPTION OF RELEASING UNRATED FILMS WHEN IT WAS ACQUIRED BUT FELT THE BENEFITS IT GAINED BY JOINING THE DISNEY FAMILY WERE MORE IMPORTANT IN THIS INSTANCE I THOUGHT WE WOULD BE HURTING THE FILMMAKER IF THE FILM WAS RELEASED WITH A RATING AND I DIDN'T WANT TO DO THAT HE SAID YOU SO CRAZY A CONCERTSTYLE FILM SIMILAR TO THE EDDIE MURPHY FILM RAW IS THE FIRST MIRAMAX FILM TO GET AN NC17 RATING SINCE THE DISNEY ACQUISITION MR LAWRENCE WHO IS THE STAR OF THE MARTIN TV SHOW ON THE FOX NETWORK FOUND HIMSELF AT THE CENTER OF A CONTROVERSY IN FEBRUARY WHEN HE MADE SEVERAL OFFCOLOR REMARKS ON THE AIR AS A GUEST HOST ON NBC'S SATURDAY NIGHT LIVE CITING THE FILM'S LANGUAGE THE MOTION PICTURE ASSOCIATION OF AMERICA LAST MONTH SLAPPED YOU SO CRAZY WITH THE RATING THAT PROHIBITS ANYONE UNDER THE AGE OF 17 FROM ADMISSION TO THE FILM MIRAMAX APPEALED THE RATING AND STAGED A NEWS CONFERENCE IN NEW YORK IN WHICH MR LAWRENCE EXTOLLED THE VIRTUES OF FREEDOM OF SPEECH THE FILM AT THAT POINT WAS SCHEDULED TO OPEN FEB 25 BUT MIRAMAX MOVED IT TO MARCH 4 BECAUSE OF THE APPEAL WHEN THE MPAA SAID IT REFUSED TO CHANGE THE RATING MIRAMAX POSTPONED THE OPENING OF THE FILM INDEFINITELY WHILE IT IS UNQUESTIONABLY DIFFICULT TO MARKET MOVIES RATED NC17 IT IS ALSO TRICKY TO MARKET CONTROVERSIAL ONES THAT ARE UNRATED GOLDWYN WHICH HOPES TO RELEASE THE FILM IN ABOUT 400 THEATERS FACES A BATTLE IN PERSUADING THEATERS TO PLAY THE PICTURE AND TV STATIONS TO AIR COMMERCIALS FOR IT THE COMPANY PLANS TO PUT ADVISORIES IN ITS NEWSPAPER AND TV ADS WARNING THAT THE FILM INCLUDES STRONG LANGUAGE SAYS MR ROTHMAN IT'S A CHALLENGE BUT IT'S THE KIND OF CHALLENGE THAT HAS ALWAYS BEEN THE LIFEBLOOD OF THE INDEPENDENTS 9403300107 940330 WHO'S NEWS FERAYORNI TO LEAD MADISON FORT LAUDERDALE FLA RICHARD J FERAYORNI WAS NAMED PRESIDENT OF MADISON GROUP ASSOCIATES INC MR FERAYORNI IS A MADISON SHAREHOLDER AND REALESTATE INVESTOR SEPARATELY MADISON REVALUED ITS ASSETS SHARPLY DOWNWARD AND REPORTED A NET LOSS OF 45 MILLION OR 126 A SHARE FOR THE FIRST QUARTER ENDED DEC 31 1993 THAT COMPARES WITH A LOSS OF 38402 OR SIX CENTS A SHARE DURING THE YEAREARLIER PERIOD FORMERLY A REALESTATE CONCERN MADISON IS TRYING TO REMAKE ITSELF AS A PROVIDER OF COUNTRY AND GOSPEL MUSIC PROGRAMMING TO TELEVISION STATIONS AND RETAIL STORES 9403300106 940330 WHITE HOUSE MULLS SELECTIVE REVOCATION OF TRADE RULES IN RIGHTS TEST FOR CHINA BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS MULLING A SELECTIVE RATHER THAN TOTAL REVOCATION OF CHINA'S TRADE BENEFITS IF BEIJING DOESN'T SHOW SUFFICIENT PROGRESS ON HUMAN RIGHTS BY JUNE SPECIFICALLY IF CHINA FAILS TO MEET A HUMANRIGHTS TEST SET BY THE ADMINISTRATION US OFFICIALS ARE CONSIDERING REVOKING FAVORABLE TRADING RULES FOR GOODS MADE BY CHINESE STATEOWNED ENTERPRISES BUT NOT FOR THOSE PRODUCED BY PRIVATE VENTURES US OFFICIALS UNDERSCORE THAT NO DECISIONS HAVE BEEN MADE AND THEY CONCEDE THAT IT WOULD BE DIFFICULT TO MONITOR A PARTIAL REVOCATION UNDER AN EXECUTIVE ORDER SIGNED BY PRESIDENT CLINTON LAST MAY THE US HAS SAID IT WILL RENEW CHINA'S MOST FAVORED NATION TRADE STATUS ONLY IF BEIJING SIGNIFICANTLY IMPROVES ITS HUMANRIGHTS BEHAVIOR BUT BECAUSE OF THE HUGE ECONOMIC LOSSES THAT WOULD BE TRIGGERED IF THE US REVOKES CHINA'S STATUS OFFICIALS HAVE BEGUN TO DISCUSS SOME LESS SEVERE PENALTIES USCHINA TRADE HAS MUSHROOMED IN RECENT YEARS MOST FAVORED NATION STATUS IS THE TREATMENT THE US CONFERS ON MOST OF ITS TRADING PARTNERS THE IDEA OF A MORE SELECTIVE REVOCATION WAS RAISED YESTERDAY DURING AN APPEARANCE BY WINSTON LORD ASSISTANT SECRETARY OF STATE FOR EAST ASIAN AND PACIFIC AFFAIRS BEFORE THE US CHAMBER OF COMMERCE RESPONDING TO A QUESTION ABOUT SELECTIVE REVOCATION WHICH PREVIOUSLY HAS BEEN APPROVED BY CONGRESS BUT NEVER PUT INTO EFFECT MR LORD SAID IN PRINCIPLE IT'S A GOOD THEORY AND ONE SHOULD BE LOOKING AT IT HE SAID THAT THE PURPOSE OF THE EARLIER LEGISLATION WAS TO LESSEN THE IMPACT OF REVOCATION ON AMERICAN BUSINESS AND JOINT VENTURES AND LESSEN THE IMPACT ON INNOCENT BYSTANDERS LIKE HONG KONG AND PERHAPS TAIWAN LATER YESTERDAY STATE DEPARTMENT SPOKESMAN MICHAEL MCCURRY NOTED THAT MR CLINTON'S EXECUTIVE ORDER DIDN'T MENTION PARTIAL REVOCATION MR MCCURRY ALSO STRESSED THAT THE ADMINISTRATION STILL IS PRODDING CHINA TO COMPLY WITH US STANDARDS SO THAT ITS TRADING STATUS CAN BE RENEWED BUT THE SPOKESMAN DIDN'T RULE OUT THE POSSIBILITY OF A PARTIAL REVOCATION I THINK THAT THERE'S SOME DISPUTE ABOUT WHETHER OR NOT IT'S POSSIBLE TO HAVE SUCH A THING AS A SEMIMFN OR HALFWAY OR PARTIAL MFN HE SAID SO I THINK THAT'S ALL SOMETHING THAT'S VERY MUCH UNDER REVIEW AND I DON'T THINK THERE'S ANY DEFINITIVE VIEW THAT THE US GOVERNMENT HAS ON A QUESTION LIKE THAT TOP ADMINISTRATION OFFICIALS HAVE TALKED OPENLY ABOUT MODIFYING ITS HUMANRIGHTS STANDARD IN FUTURE YEARS IF CHINA MEETS THIS YEAR'S TEST THE ADMINISTRATION WOULD LIKE TO REMOVE THE ANNUAL MOST FAVORED NATION DEBATE FROM THE CENTER OF USCHINA POLICY A PLACE IT HAS OCCUPIED SINCE BEIJING'S MASSACRE OF PRODEMOCRACY STUDENTS IN TIANANMEN SQUARE IN 1989 REP NANCY PELOSI D CALIF A LEADING ADVOCATE OF LINKING CHINA'S MOST FAVORED NATION STATUS TO ITS HUMANRIGHTS RECORD SAID THE PRESIDENT DOESN'T NEED FURTHER AUTHORITY TO REVOKE MFN IN A TARGETED WAY AND SHE SAID CONGRESS WOULD BE UNLIKELY TO OBJECT TO A PARTIAL REVOCATION DURING THE BUSH ADMINISTRATION LAWMAKERS APPROVED LEGISLATION PROVIDING FOR PARTIAL REVOCATION BUT THE PRESIDENT VETOED IT CONGRESS CONSIDERED SUCH A BILL AGAIN LAST YEAR BUT DIDN'T ACT AFTER PRESIDENT CLINTON ADOPTED HIS EXECUTIVE ORDER REP PELOSI MAINTAINED THAT PARTIAL REVOCATION WOULD STILL SEND A STERN MESSAGE TO CHINA WHEN PUSH COMES TO SHOVE AND IT USUALLY DOES IN BEIJING THEY WILL UNDERSTAND THAT THIS IS NOT BACKING OFF SHE SAID IT SAYS WE'RE GOING AFTER YOUR STATERUN BUSINESSES AND NOT THE PRIVATE SECTOR 9403300105 940330 SAKS TO CLOSE 2 CALIFORNIA STORES NEW YORK SAKS FIFTH AVENUE SAID IT PLANS TO CLOSE TWO UNDERPERFORMING STORES IN THE SAN DIEGO AREA PHILIP B MILLER CHAIRMAN AND CHIEF EXECUTIVE OF SAKS SAID THE DECISION TO CLOSE ITS STORES IN MISSION VALLEY AND LA JOLLA CALIF FOLLOWS THE RETAILER'S PLAN TO CONCENTRATE ITS RESOURCES ON THOSE STORES AND MARKETS WHERE THE CORPORATION GETS A HIGHER RETURN ON INVESTED CAPITAL THE COMPANY SAID IT WOULD CONSIDER REENTERING THE MARKET IF THE RIGHT OPPORTUNITY PRESENTS ITSELF SAKS WITH 59 STORES IN 22 STATES IS OWNED BY INVESTCORP A BAHRAINBASED INVESTOR GROUP 9403300104 940330 TREASURY PLANS SALE OF 252 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO RAISE 600 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 252 BILLION IN SHORTTERM BILLS TO REDEEM 2460 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON JULY 7 1994 AND OCT 6 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794M35 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794N59 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9403300103 940330 FINANCING BUSINESS SABER SOFTWARE CORP SABER SOFTWARE CORP DALLAS SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED INITIAL PUBLIC OFFERING OF 18 MILLION COMMON SHARES 12 MILLION OF WHICH WILL BE SOLD BY THE COMPANY AND 600000 OF WHICH WILL BE SOLD BY CERTAIN SHAREHOLDERS THE COMPUTERSOFTWARE CONCERN SAID IT EXPECTS THE STOCK TO BE PRICED AT 9 TO 11 A SHARE WESSELS ARNOLD & HENDERSON AND TUCKER ANTHONY INC WILL MANAGE THE OFFERING WHICH INCLUDES AN OPTION TO BUY AN ADDITIONAL 270000 SHARES FROM THE SELLING SHAREHOLDERS TO COVER OVERALLOTMENTS SABER SAID IT WOULD USE PROCEEDS FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES 9403300102 940330 WHO'S NEWS PLAYERS INTERNATIONAL INC PLAYERS INTERNATIONAL INC LAKE CHARLES LA STEVEN PERSKIE CHAIRMAN OF THE NEW JERSEY CASINO CONTROL COMMISSION WILL JOIN THIS RIVERBOAT CASINO OPERATOR AS VICE PRESIDENT GENERAL COUNSEL AND A DIRECTOR EFFECTIVE MAY 2 MR PERSKIE 49 YEARS OLD IS FILLING A NEW CORPORATE POSITION HE ALSO FILLS A BOARD VACANCY CREATED BY THE RESIGNATION OF STANLEY FISHMAN MR PERSKIE WHO WAS INSTRUMENTAL IN DRAFTING THE NEW JERSEY CASINO CONTROL ACT WILL HELP OVERSEE PLAYERS'S ENTRY INTO EMERGING GAMBLING JURISDICTIONS AND WILL ADVISE THE COMPANY ON VARIOUS POLITICAL AND STRATEGIC ISSUES PLAYERS SAID 9403300101 940330 MARKETING & MEDIA ADVERTISING PHILIP MORRIS ADS TREAT THE PLIGHT OF HARRIED SMOKERS HUMOROUSLY BY KEVIN GOLDMAN EVEN AS PHILIP MORRIS IS BATTLING THE GROWING RESTRICTIONS ON SMOKING THE TOBACCO GIANT APPARENTLY STILL HAS A SENSE OF HUMOR IN A SURPRISING AD CAMPAIGN FOR ITS FALTERING BENSON & HEDGES BRAND THE COMPANY IS ACTUALLY MAKING LIGHT OF THE BACKLASH AGAINST SMOKING SHOWING THE LENGTHS SMOKERS HAVE TO GO TO IN ORDER TO TAKE A PUFF THESE DAYS ONE WHIMSICAL AD SHOWS SMOKERS PUFFING AWAY AT THEIR OFFICE DESKS WHICH ARE LOCATED OUTSIDE THE WINDOWS THE HEADLINE HAVE YOU NOTICED FINDING A PLACE TO SMOKE IS THE HARDEST PART OF YOUR JOB FOR A GREAT SMOKE PUT IN FOR A WINDOW OFFICE THE BRAND'S NEW TAGLINE IS THE LENGTH YOU GO TO FOR PLEASURE THE ADVERTISING IS CLEARLY A CHANGE IN TONE FROM PHILIP MORRIS'S MOST RECENT ACTIONS IN FEBRUARY PHILIP MORRIS SUED THE CITY OF SAN FRANCISCO TO TRY TO OVERTURN A STRICT ANTISMOKING ORDINANCE THAT BANS SMOKING IN OFFICES AND CALLS FOR BAN ON SMOKING IN RESTAURANTS BY NEXT JAN 1 LAST WEEK THE TOBACCO INDUSTRY RAILED AGAINST A PROPOSAL FROM THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION THAT WOULD SEVERELY CURTAIL SMOKING IN PUBLIC BUILDINGS THROUGHOUT THE COUNTRY THE NEW AD STRATEGY AROSE AFTER PHILIP MORRIS EXECUTIVES GLANCED OUT THEIR OFFICE WINDOWS AND SAW INDIVIDUALS ON ROOFTOPS BLOCKS AWAY PUFFING AWAY ON A SMOKE BREAK NO ONE IS ACKNOWLEDGING THIS SITUATION AMONG SMOKERS SAYS JAMES J MORGAN PHILIP MORRIS USA SENIOR VICE PRESIDENT OF MARKETING AND EMPATHY IS WHAT BENSON & HEDGES IS BUILT ON WE ARE THE BRAND THAT UNDERSTANDS THAT SMOKERS HAVE BECOME PARIAHS THE ADS ESTABLISH A CONNECTION WITH THE CONSUMERS THAT IS WARM HUMOROUS AND WHIMSICAL ANOTHER AD SHOWS SMOKERS ON THE WING OF A JET WITH THE HEADLINE HAVE YOU NOTICED ALL YOUR SMOKING FLIGHTS HAVE BEEN CANCELLED FOR A GREAT SMOKE JUST WING IT A THIRD AD IS A PICTURE OF HOME ROOFTOPS WHERE SMOKERS LOUNGE ON HAMMOCKS AND ROCKING CHAIRS THE ADS WILL START APPEARING IN MAY ISSUES OF SUCH MAGAZINES AS TIME NEWSWEEK AND PEOPLE IN ADDITION THERE WILL BE OUTDOOR BILLBOARDS INCLUDING A THREEDIMENSIONAL EXECUTION OF THE AIRLINE AD ON AN EXPRESSWAY BY NEW YORK'S YANKEE STADIUM PHILIP MORRIS EXECUTIVES DECLINE TO COMMENT ON THE AD BUDGET BUT MR MORGAN SAYS IT IS JUST SHORT OF A MAJOR PRODUCT LAUNCH WHEN THE ACCOUNT MOVED TO THE LEO BURNETT AD AGENCY IN 1991 IT WAS ESTMATED TO HAVE 25 MILLION IN BILLINGS WITH THIS LATEST CAMPAIGN FROM LEO BURNETT FRUSTRATED PHILIP MORRIS EXECUTIVES BELIEVE THEY FINALLY HAVE SOLVED A PROBLEM THAT HAS LINGERED FOR MORE THAN TWO DECADES HOW TO TRANSLATE THE ENORMOUSLY POPULAR BENSON & HEDGES TELEVISION CAMPAIGN OF THE LATE 1960S TO PRINT THE BRAND WHICH IS 15 MILLIMETERS LONGER THAN TRADITIONAL CIGARETTES WAS INTRODUCED WITH CHEEKY COMMERCIALS THAT SHOWED AMUSING OBSTACLES TO THE ELONGATED PRODUCT SUCH AS ELEVATOR DOORS CLOSING ON THE CIGARETTE BENSON & HEDGES IS OUR ONLY BRAND NOT TO HAVE MADE THE TRANSITION FROM TV TO PRINT AFTER TOBACCO ADS WERE BANNED FROM TV IN 1972 SAYS MR MORGAN BUT THE NEW ADS CONTAIN SOPHISTICATED SELFDEPRECATING HUMOR THE SAME INGREDIENTS IN THE TV COMMERCIALS MARKETING EXPERTS AGREE WITH MR MORGAN'S ASSESSMENT THAT BENSON & HEDGES HAS FINALLY FOUND A PRINT HOME THE CAMPAIGN USES CLEVER ILLUSTRATIONS TO CAPITALIZE ON A SITUATION OF INCREASING RESTRICTIONS ON SMOKERS SAYS JOHN LISTER CHIEF EXECUTIVE OFFICER AND CREATIVE DIRECTOR OF LISTER BUTLER A NEW YORK BRANDIDENTITY CONSULTANT PHILIP MORRIS DESERVES KUDOS FOR BEING THE FIRST OUT OF THE GATE TO ACKNOWLEDGE THE RESTRICTIONS WITH AN OPENMINDED AND HUMOROUS RESPONSE MEANWHILE A NEW PRODUCT INTRODUCED LAST YEAR BENSON & HEDGES SPECIAL KINGS AN 85 MILLIMETER CIGARETTE HAS BEEN QUIETLY DROPPED AFTER A PECULIAR AD CAMPAIGN FEATURING SNAKES AND BEES THE WORLD WASN'T CLAMORING FOR THE PRODUCT CONCEDES MR MORGAN SALES OF BENSON & HEDGES 100'S SLID AS PHILIP MORRIS STOPPED ITS ADVERTISING IN FAVOR OF THE NEW PRODUCT LAUNCH ACCORDING TO JOHN C MAXWELL JR OF WHEAT FIRST SECURITIES BENSON & HEDGES RANKED NO 10 WITH 25 OF THE MARKET IN 1993 DOWN FROM ITS NO 9 RANKING IN 1992 WITH 31 OF THE MARKET MR MORGAN USES SOMEWHAT SELFDEPRECATING HUMOR WHEN DESCRIBING BENSON & HEDGES'S AD ODYSSEY WHICH HAS INCLUDED 16 DIFFERENT CAMPAIGNS SINCE THE BRAND WAS INTRODUCED IN 1966 SLOGANS SUCH AS WEEKENDS MORNINGS AND ME B&HI LOVE YOUR STYLE THAT'S THE BREAKS AND HE LIKES SHE LIKES WERE SNUFFED OUT AT AN ALARMING RATE ONE AD CAMPAIGN THAT FLOPPED WAS FOR PEOPLE WHO LIKE TO SMOKE IN 1987 WHICH FEATURED SMOKING YUPPIES IN RESTAURANTS AND AT HOME THE BRAND'S LONGTIME AD AGENCY WELLS RICH GREEN BDDP WAS FIRED IN APRIL 1991 AND REPLACED THREE MONTHS LATER BY BURNETT PHILIP MORRIS APPROACHED BURNETT WITH THE IDEA FOR THE BENSON & HEDGES CAMPAIGN LAST JUNE AND ALL WENT SMOOTHLY UNTIL THE JAN 10 ISSUE OF THE NEW YORKER HIT NEWSSTANDS ON THE COVER WAS AN ILLUSTRATION OF SMOKERS STANDING ON THE LEDGES OF OFFICE BUILDINGS PUFFING AWAY IT WAS THE SAME CONCEPT AS OUR OFFICE AD SAYS MR MORGAN WE WERE SCARED THAT A RIVAL WOULD SEE THAT AND PRODUCE AN AD BEFORE BENSON & HEDGES' ADS BOWED NATIONALLY TRICK PHOTOGRAPHY WASN'T USED IN ANY OF THE EXECUTIONS SAYS SUZANNE A LEVAN VICE PRESIDENT OF BRAND MANAGEMENT PREMIUM BRANDS AT PHILIP MORRIS FOR EXAMPLE MODELS WERE ACTUALLY PLACED ON THE WING OF A JET PARKED IN CALIFORNIA'S MOJAVE DESERT AND AN EIGHTSTORY OFFICEBUILDING FACADE WAS ERECTED ON A SET IN LOS ANGELES FOR ANOTHER AD MR MORGAN SAYS THERE IS LITTLE RISK IN THE NEW CAMPAIGN EXCEPT THAT MAYBE A LOT OF PEOPLE WON'T GET IT AND IF YOU DON'T GET THE JOKE IT MIGHT COME OFF AS SILLY THE CAMPAIGN COULD EASILY BE SUSTAINED HE SAYS WITH ADDITIONAL AMUSING SITUATIONS FACING SMOKERS AS THEY GROPE FOR PLACES TO LIGHT UP THIS IS MERELY OBSERVING THE WORLD AROUND YOU SAYS MR MORGAN ANOTHER STRENGTH OF THE CAMPAIGN HE SAYS IS THAT ALL SMOKERS WILL BE ABLE TO IDENTIFY WITH THE PROBLEMS ILLUSTRATED IN THE ADS PHILIP MORRIS EVEN SEES AN OPPORTUNITY TO PROVIDE PLACES TO SMOKE IN THIS SEGREGATED WORLD SAYS MR MORGAN AND THOSE COULD BE PROMOTED THROUGH THE BENSON & HEDGES CAMPAIGN FOR INSTANCE LAST DECEMBER PHILIP MORRIS SAID IT PLANNED TO CONTRIBUTE 250000 TO HELP BUILD 10 SMOKERS' LOUNGES THROUGHOUT ATLANTA'S HARTSFIELD INTERNATIONAL AIRPORT WHICH HAS BANNED SMOKING IN ALL PUBLIC AREAS PHILIP MORRIS MAY NOT STOP THERE ACCORDING TO PUBLISHED REPORTS THE COMPANY IS DEVELOPING MARLBORO EXPRESS A SHORTER CIGARETTE FOR THOSE SMOKERS WHO NEED TO SPEND LESS TIME PUFFING AS THEY GO BETWEEN NONSMOKING AREAS MR MORGAN DECLINED TO COMMENT ON THE PROSPECTS FOR A MINIATURE MARLBORO FIVE MONTHS AFTER HIS RETIREMENT FROM PROFESSIONAL BASKETBALL MICHAEL JORDAN REMAINS THE MOSTWANTED ATHLETE PITCHMAN BY A LONG SHOT WITH PROJECTED 1994 ENDORSEMENT EARNINGS OF 31 MILLION ACCORDING TO THE SPORTS MARKETING LETTER SHAQUILLE O'NEAL IS A DISTANT SECOND AT 135 MILLION CLOSE BEHIND ARE GOLFERS ARNOLD PALMER AND JACK NICKLAUS AT 12 MILLION AND 105 MILLION RESPECTIVELY QUARTERBACK JOE MONTANA WEIGHS IN AT NO 5 WITH AN ESTIMATED 10 MILLION ROUNDING OUT THE LIST WERE WAYNE GRETZKY 875 MILLION CHRIS EVERT 575 MILLION CHARLES BARKLEY 5 MILLION NANCY KERRIGAN 35 MILLION AND DAN JANSEN 35 MILLION THE WESTPORT CONN NEWSLETTER RANKS ATHLETE ENDORSERS BY ESTIMATED EARNINGS EXCLUDING SALARIES AND TOURNAMENT WINNINGS AND BY SUBJECTIVE IMPRESSIONS OF WHO IS GENERATING THE MOST HEAT AMONG ADVERTISERS RETURN TO INDY BRIDGESTONE/FIRESTONE IS LAUNCHING A 10 MILLION EFFORT TO PROMOTE ITS RETURN TO THE INDIANAPOLIS 500 IN 1995 AFTER AN ABSENCE OF 20 YEARS THE FIRESTONE BRAND HAD BEEN NEARLY SYNONYMOUS WITH THE INDY 500 AFTER 43 STRAIGHT RACES AS THE WINNING TIRE STARTING IN 1920 THE AGENCY IS OMNICOM GROUP'S TBWA ADVERTISING BRIDGESTONE/FIRESTONE IS A UNIT OF BRIDGESTONE JAPAN ACCOUNT NFL ENTERPRISES A UNIT OF THE NATIONAL FOOTBALL LEAGUE TAPPED MARGEOTES/FERTITTA DONAHER & WEISS NEW YORK TO CREATE ADS FOR A SATELLITETV SERVICE PLANNED FOR JUNE BILLINGS COULDN'T BE DETERMINED AT&T PITCH AMERICAN TELEPHONE & TELEGRAPH SAID A SIXTH AGENCY ALSO IS CONTENDING FOR ITS BIG DIRECTMARKETING CONSUMERSERVICES ADVERTISING WORLDWIDE 1 ON 1 A JOINT VENTURE OF NW AYER AND ROSS ROY COMMUNICATIONS 9403300100 940330 DEVELOPER CONVICTED OF 12 MILLION FRAUD AGAINST DIME SAVINGS BOSTON A CAMBRIDGE MASS CITY COUNCILMAN AND REAL ESTATE DEVELOPER WAS CONVICTED OF A FRAUD SCHEME THAT COST DIME SAVINGS BANK OF NEW YORK 12 MILLION WILLIAM H WALSH 49 YEARS OLD WAS FOUND GUILTY IN US DISTRICT COURT HERE OF CONSPIRACY 29 COUNTS OF BANK FRAUD AND 11 COUNTS OF MAKING FALSE STATEMENTS TO THE BANK IN CONNECTION WITH LOANS GRANTED IN 1986 AND 1987 HE WAS FOUND NOT GUILTY OF 18 OTHER COUNTS OF MAKING FALSE STATEMENTS THE VERDICT DELIVERED BY A JURY ON MONDAY FOLLOWED A 21DAY TRIAL AND FIVE DAYS OF DELIBERATION MR WALSH WAS ACCUSED OF DEFRAUDING DIME SAVINGS BY OBTAINING CONDOMINIUM MORTGAGES THROUGH SUBMISSION OF FALSE LOAN DOCUMENTS MANY OF THE MORTGAGE HOLDERS LATER DEFAULTED RESULTING IN LOSSES FOR THE BANK MR WALSH COULD NOT BE REACHED FOR COMMENT HE TOLD THE BOSTON GLOBE THAT HE PROBABLY WILL APPEAL AND THAT HE HAS NO IMMEDIATE PLANS TO QUIT THE CAMBRIDGE CITY COUNCIL WHERE HE IS A CHAMPION OF LOCAL PROPERTY OWNERS WHO OPPOSE THE CITY'S RENT CONTROL LAW MR WALSH FACES A MAXIMUM SENTENCE OF FIVE YEARS IN PRISON AND A 250000 FINE ON EACH OF THE 41 CHARGES SENTENCING IS SCHEDULED FOR JUNE 23 9403300099 940330 YIELDS ON CDS ENDED LITTLE CHANGED IN WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS CHANGED LITTLE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 3 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS CREPT UP TO 474 FROM 472 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS REMAINED AT 346 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 501 FROM 493 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE INCHED UP TO 321 FROM 319 ON FIVEYEAR JUMBOS THE AVERAGE YIELD ROSE TO 514 FROM 510 ACCORDING TO BANXQUOTE 9403300098 940330 INTERNATIONAL POLITICAL CRISIS ROILING MEXICO APPEARS TO TAKE A TOLL ON ECONOMIC GROWTH BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY MEXICO'S POLITICAL CRISIS APPEARS TO BE SLOWING ECONOMIC GROWTH A SURVEY OF FIVE ECONOMISTS REPRESENTING RESEARCH FIRMS HERE AND ABROAD SHOWS AVERAGE EXPECTATIONS OF FIRSTQUARTER GROSS DOMESTIC PRODUCT GROWTH RANGING FROM 03 TO 06 THAT IS DOWN SIGNIFICANTLY FROM PREVIOUS PREDICTIONS OF ABOUT 1 TO BE SURE THE FIRST THREE MONTHS HAVE BEEN DISTRACTING FOR MEXICAN BUSINESSES WITH THE NEW YEAR'S PEASANT REVOLT IN CHIAPAS INFIGHTING WITHIN THE RULING PARTY AND MOST RECENTLY THE ASSASSINATION OF THE PARTY'S PRESIDENTIAL CANDIDATE BUT ANALYSTS SAY THERE IS STILL PLENTY OF UNCERTAINTY TO COME MEXICAN BUSINESSES MUST STILL ACCOMMODATE THEIR OPERATIONS TO A NEW WORLD OF LOWER TARIFFS FALLING INFLATION AND CHANGING LABOR COSTS AND ANY CHANGE OR UNCERTAINTY OVER THE POLITICAL REGIME WILL UPSET EXPECTATIONS ABOUT ALL OF THESE FACTORS STOCKS ROSE AND THE PESO STRENGTHENED YESTERDAY ON THE NAMING OF ERNESTO ZEDILLO AS THE REPLACEMENT CANDIDATE OF THE RULING PARTY CALLED THE PRI BUT OVERALL THE MARKETS' REACTION WAS MUTED AFTER RISING OUT OF A 21POINT LOSS TO A GAIN OF NEARLY 40 POINTS THE MEXICAN BOLSA'S IPC INDEX FINISHED 1144 POINTS HIGHER THE PESO STRENGTHENED BY AS MUCH AS THREE CENTAVOS AGAINST THE DOLLAR BUT THEN SETTLED ABOUT UNCHANGED ON THE DAY AT 335 PESOS PER DOLLAR MR ZEDILLO ANALYSTS SAY FACES THE STIFF CHALLENGE OF UNITING THE WARRING FACTIONS WITHIN THE PRI UNTIL THIS IS ACCOMPLISHED A STRONG PRI VICTORY IS UNCERTAIN HIS LEADERSHIP ABILITY IS NOT CLEAR SAYS BORJA USSIA PRESIDENT OF THE RESEARCH FIRM GRUPO MONEDA MEXICO CITY FOR THE TIME BEING THE MARKETS ARE GOING TO BE VERY VOLATILE MEXICO'S ECONOMIC PLANNERS ARE AIMING FOR 3 GROWTH FOR 1994 AND AN INFLATION TARGET OF 5 BUT THE AVERAGE OF ESTIMATES BY ECONOMISTS SURVEYED RANGED FROM 2 TO 27 FOR 1994 GDP GROWTH AN AVERAGE OF THEIR INFLATION EXPECTATIONS RANGED FROM 76 TO 78 MEXICO'S INFLATION RATE STOOD AT 8 IN 1993 PERSISTENTLY HIGH INFLATION AND WEAKER GROWTH COULD UPSET LABOR LEADERS BECAUSE MANY UNIONS WERE PUSHED INTO ACCEPTING WAGE INCREASES OF 7 THIS YEARTHE RATIONALE WAS THAT THE INCREASES WOULD INCLUDE A 2 RISE BEYOND INFLATION BUT MEXICAN WORKERS MAY NOW SEE THEIR WAGES DROP IN REAL TERMS ROGELIO RAMIREZ DE LA O THE HEAD OF THE ECONOMICS FIRM ECANAL EXPECTS 1994 ECONOMIC GROWTH OF 2 BUT ONLY ON THE BASIS THAT THE POLITICAL SITUATION GOES BACK TO NORMAL IF IT CONTINUES IN UPHEAVAL LIKE THIS WE WILL HAVE ZERO GROWTH WE ARE JUST GOING TO DRIFT STOCK INVESTORS ARE ALREADY EXPECTING WEAK FIRSTQUARTER EARNINGS AND HAVE MARKED SHARE PRICES DOWN ABOUT 13 IN DOLLAR TERMS THIS YEAR AT THE MEXICAN BOLSA'S IPC INDEX LEVEL OF 245759 THE MARKET IN GENERAL IS STILL OVERVALUED GIVEN THE CURRENT SLOW RATE OF GROWTH MR USSIA SAYS WE RECOMMEND A BUY AT AROUND 2200 AN AVERAGE OF ESTIMATES BY THE ECONOMISTS SURVEYED SHOWS EXPECTATIONS FOR THE PESO TO REMAIN ABOUT 8 LOWER FOR THIS YEAR AT ABOUT 336 PESOS PER DOLLAR THE ECONOMISTS EXPECT YIELDS ON 28DAY MEXICAN TREASURY CERTIFICATES TO AVERAGE 96 TO 98 FOR THE YEAR DOWN FROM 107 LAST YEAR A WEAKER PESO VS THE DOLLAR THIS YEAR COULD GIVE A LIFT TO DOMESTIC PRODUCERS AND THE MEXICAN EXPORT MARKET SAYS LUIS R LUIS ECONOMIST AT INVESTMENT FIRM SCUDDER STEVENS & CLARK BUT THIS USUALLY TAKES FOUR TO EIGHT MONTHS CONSEQUENTLY MR LUIS BELIEVES THAT THE MEXICAN ECONOMY WILL SHOW ITS STRONGEST GROWTH IN THE SECOND HALF INDEED THE PESO RATHER THAN LARGE FISCAL SPENDING SEEMS TO BE THE GOVERNMENT'S MAIN TOOL TO ENCOURAGE DIRECT INVESTMENT AND EXPORTLED GROWTH JAIME DE PINIES HEAD OF RESEARCH AT SANTANDER INVESTMENT IN MADRID THINKS MEXICAN MONETARY AUTHORITIES COULD DOUBLE THE PESO'S CRAWLING DEVALUATION TO 00008 PESOS A DAY LATER IN THE YEAR IN THE SHORT TERM I HAVE NO DOUBT THE PESO WILL BE DEFENDED HE SAID IN THE MEDIUM TERM I EXPECT A FASTER RATE OF CRAWLING DEVALUATION HE CONCLUDED THE PESO HAS APPRECIATED IN INFLATIONADJUSTED TERMS VERY SIGNIFICANTLY OVER THE PAST FEW YEARS MAKING MEXICAN PRODUCTS LESS COMPETITIVE CORRECTING THE VALUE OF THE PESO MIGHT BE A GOOD THING 9403300096 940330 TEXAS JOURNAL WHY ARE SELLERS OF HAIR SPRAY CRYING TODAY BY TARA PARKERPOPE DALLAS NORTH TEXAS SPORTS RETAILERS ARE BRACING FOR THE BACKLASH OF COWBOYS FANS ANGRY OVER THE DEPARTURE OF COACH JIMMY JOHNSON THE FEUD BETWEEN COWBOYS OWNER JERRY JONES AND MR JOHNSON WHO ANNOUNCED YESTERDAY HE WOULD NO LONGER COACH THE COWBOYS HAS SOME OWNERS OF SPORTS STORES RETHINKING THEIR FALL ORDERS FOR COWBOYS MERCHANDISE I'M GETTING ON THE PHONE RIGHT NOW TO CUT BACK MY ORDER 35 OR 40 SAYS ED GAMLIN OWNER OF SPORTS SECTION INC IN DALLAS WHO ESTIMATES 70 OF HIS SPORTSAPPAREL BUSINESS IS BASED ON THE COWBOYS MR GAMLIN SAYS MR JOHNSON'S LOSS COULD COST SPECIALTY SPORTS SHOPS 40000 TO 90000 IN SALES DALLAS FANS ARE VERY FICKLE HE SAYS AT FIELD OF DREAMS A DALLAS GALLERIA SHOP THAT SELLS FOOTBALLS AND HELMETS SIGNED BY THE COWBOYS FOR AS MUCH AS 2500 COOWNER JEFF PHILLIPS SAYS FANS ALREADY ARE GRUMBLING WHEN THEY SEE ITEMS SIGNED BY BOTH MR JOHNSON AND MR JONES IT MAY MAKE SOME ITEMS MORE COLLECTIBLE MR PHILLIPS SAYS BUT LONGTERM IT LOOKS LIKE THEY'RE GOING TO KILL THE DYNASTY I KNOW IT'S GOING TO HAVE A HUGE EFFECT THE DISPUTE IS PARTICULARLY UNSETTLING TO MR PHILLIPS A MINNEAPOLIS NATIVE WHO PICKED THE DALLAS MARKET AND OPENED HIS STORE IN NOVEMBER SPECIFICALLY TO CASH IN ON THE COWBOYS WINNING STREAK A HAPPY COWBOYS FAN SAYS MR PHILLIPS WILL BUY OUR STUFF BEFORE THEY PAY THEIR RENT THE ENTHUSIASM OF COWBOYS FANS PROMPTED THE NORTH TEXAS FORD DEALERS ASSOCIATION LAST YEAR TO SELL A LIMITEDEDITION PICKUP IN COWBOYS SILVER AND BLUE FORD DEALERS SAY MOST OF THE TRUCKS ALREADY HAVE SOLD FORTUNATELY I DON'T HAVE VERY MANY LEFT SAYS CHARLIE NIXON SALES MANAGER FOR PRESTIGE FORD IN GARLAND KERRY CASSUTO OWNER OF BIG LEAGUE THREADS IN DALLAS SAYS HE WON'T CHANGE HIS FALL CLOTHING ORDERS BUT MAY CANCEL SOME BIGTICKET COWBOYS ITEMS IT'S LIKE JERRY JONES SAID AT THE BEGINNING THERE'S NO SUBSTITUTE FOR WINNING MR CASSUTO SAYS I THINK PEOPLE ARE GOING TO BE REALLY BITTER 9403300095 940330 TECHNOLOGY SUN MICROSYSTEMS CUTS PRICES UP TO 50 ON WORKSTATIONS AS PC ONSLAUGHT LOOMS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL SUN MICROSYSTEMS INC MOVING TO FEND OFF AN IMPENDING ASSAULT BY INCREASINGLY POWERFUL PERSONAL COMPUTERS SLASHED PRICES AS MUCH AS 50 ON A NEW LINE OF WORKSTATIONS WITH MIDRANGE MODELS STARTING BELOW 4000 PREVIOUSLY SUN'S LEASTEXPENSIVE LOWEND WORKSTATION THE SPARCCLASSIC WAS PRICED AT 3995 WITH A MIDRANGE VERSION PRICED AT ABOUT 8000 AND HIGHEND MODELS AROUND 17000 SUN DROPPED THE SPARCCLASSIC TO 2995 WHILE INTRODUCING THE NEW MIDRANGE SPARCSTATION 5 BEGINNING AT 3995 AND THE HIGHEND SPARCSTATION 20 STARTING AT 12195 ALL MODELS COME FULLY LOADED WITH MONITOR HARD DRIVE AND OTHER ESSENTIALS THE ACTION BY THE MOUNTAIN VIEW CALIF COMPANY PUTS ADDITIONAL PRICING PRESSURE ON SUCH WORKSTATION COMPETITORS AS HEWLETTPACKARD CO WHICH IN JANUARY FOLLOWED SUN BY INTRODUCING A LOWEND WORKSTATION AT 3995 ANALYSTS SAY IT ALSO SHOULD HELP SUN TEMPORARILY FEND OFF ENCROACHMENTS INTO ITS DOMAIN FROM NEW PCS EQUIPPED WITH MICROPROCESSORS THAT RIVAL OVERALL PERFORMANCE OF SUN WORKSTATIONS AT A FAR LOWER PRICE THEY'VE PUT THEMSELVES IN A NICE AGGRESSIVE POSITION SAID LAURA CONIGLIARO COMPUTER ANALYST FOR PRUDENTIAL SECURITIES INC DOWN THE ROAD THOUGH SUN AND OTHER WORKSTATION MAKERS LIKE HP AND DIGITAL EQUIPMENT CORP FACE A REAL THREAT OF THE LOWERCOST PCS STEALING AWAY MARKET SHARE NEW PC CHIPS LIKE INTEL CORP'S PENTIUM AND THE POWERPC DEVELOPED BY APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC CAN RUN CERTAIN PROGRAM APPLICATIONS AS FAST OR FASTER THAN THE 12195 SUN WORKSTATION BUT COST ONLY ABOUT 4500 FOR A TOP OF THE LINE MODEL WITH THESE NEW PCS ALSO CAPABLE OF RUNNING OPERATING SYSTEMS THAT WERE ONCE THE DOMAIN OF WORKSTATIONS THE WORKSTATION MARKET COULD BEGIN TO IMPLODE LINLEY GWENNAP EDITOR OF MICROPROCESSOR REPORT WRITES IN THIS WEEK'S ISSUE INTELBASED PCS CAN RUN VERSIONS OF UNIX THE OPERATING SYSTEM PREVALENT AMONG WORKSTATIONS AS WELL AS A SUN VERSION OF UNIX CALLED SOLARIS AS PCS INFILTRATE THE WORKSTATION MARKET WHICH MANY ANALYSTS EXPECT WILL HAPPEN SOON WORKSTATION VENDORS WILL HAVE A TOUGH TIME COMPETING AGAINST VOLUME MANUFACTURERS LIKE COMPAQ COMPUTER CORP WHICH SHIPPED 31 MILLION PERSONAL COMPUTERS LAST YEAR WORKSTATION LEADER SUN SHIPPED ABOUT 240000 UNITS LAST YEAR WORKSTATION SHIPMENTS IN ALL TOTALED ABOUT 620000 IN 1993 VS 39 MILLION FOR PCS ACCORDING TO DATAQUEST INC SUN OFFICIALS ACKNOWLEDGE THEY ARE IN A TOUGH MARKET BUT INSIST THEY ARE UP TO THE CHALLENGE FROM PC MAKERS WE ARE NOT A TARGET SITTING IN ONE SPOT SAID A SUN SPOKESMAN SUN IS PREPARED TO COMPETE WORKSTATIONS STILL MAINTAIN CERTAIN ADVANTAGES OVER PCS SUCH AS SUPERIOR ABILITY TO BE NETWORKED TOGETHER AS WELL AS THE CAPABILITY FOR A USER TO RUN SEVERAL DIFFERENT PROGRAMS ON THE SAME SCREEN THE BIGGEST ADVANTAGE ANALYSTS SAY IS THAT SOME OF THE MOST COMPLEX SOFTWARE PROGRAMS SUCH AS FOR A CHIP DESIGN ARE NOW WRITTEN TO RUN ONLY ON WORKSTATIONS BUT MICHAEL SLATER PUBLISHER OF THE MICROPROCESSOR REPORT SAID THAT BARRIER TO PCS WILL DISSIPATE AS DEVELOPERS OF THOSE PROGRAMS BEGIN REWRITING FOR PENTIUM AND POWERPC 9403300094 940330 MARKETING & MEDIA PEPSI SEEN ADDING FRESHNESS DATING TO ITS SOFT DRINKS BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC IS EXPECTED TO ANNOUNCE TODAY PLANS TO PUT FRESHNESS DATING ON ITS SOFTDRINK PACKAGES AN ISSUE THAT HAS GENERATED CONSIDERABLE DEBATE WITHIN THE BEVERAGE INDUSTRY THE ANTICIPATED MOVE BY PEPSI THE FOOD AND BEVERAGE CONCERN BASED IN PURCHASE NY WOULD FOLLOW LIMITED TESTS OF THE CONCEPT LAST YEAR AS WITH FRESHNESS DATING FOUND ON MILK OR BREAD THE COMPANY PRINTED CONTAINER LABELS IN TEST MARKETS WITH THE WORDS BEST TASTE IF CONSUMED BY A CERTAIN DATE PEPSI ACCORDING TO TRADE PUBLICATION BEVERAGE DIGEST HAS FOUND THAT THE VAST MAJORITY OF CONSUMERS IN TEST MARKETS COULD TELL THE DIFFERENCE BETWEEN FRESH AND STALE DRINKS AND APPRECIATED THE FRESHNESS DATING SOME INDUSTRY SOURCES HAVE SAID THE EMPHASIS ON FRESHNESS DATING WILL APPEAL TO CUSTOMERS AS A RESULT OF THE ATTENTION GIVEN TO NEW NUTRITIONAL LABEL REQUIREMENTS PEPSI IS ALSO EXPECTED TO INTRODUCE A NATIONAL AD CAMPAIGN FOR THE STRATEGY PEPSI DECLINED TO COMMENT ON TODAY'S PLANNED ANNOUNCEMENT ONE ATTRACTION OF THE FRESHNESS DATING FOR PEPSI IS PUTTING NEW LIFE INTO THE DIETDRINK SEGMENT WHICH HAS POSTED LACKLUSTER SALES IN RECENT YEARS IN 1993 DIET PEPSI VOLUME FELL 06 AND OVERALL DIET DRINKS LOST 12 IN MARKET SHARE ACCORDING TO THE MAXWELL CONSUMER REPORT COKE HAS ALSO TRIED TO DRAW ATTENTION TO ITS DIET COLA WITH A NEW ADVERTISING CAMPAIGN THIS YEAR AS WELL AS A REDESIGNED PACKAGE STILL MANY WITHIN THE SOFTDRINK INDUSTRY OPPOSE HIGHLIGHTING A NEGATIVE THAT MANY CONSUMERS DON'T USUALLY CONSIDERTHAT THE ARTIFICIAL SWEETENER USED IN DIET DRINKS ASPARTAME CAN LOSE ITS SWEETNESS OVER TIME IN ATLANTA A COCACOLA CO SPOKESMAN SAID COKE'S TEST OF CONSUMER REACTION TO FRESHNESS DATING SHOWED IT TO BE A NONISSUE COKE WORKERS ROTATE PRODUCTS ON STORE SHELVES BY USING FRESHNESS CODES PRINTED ON THE PACKAGES BUT THE COMPANY HAS NO CURRENT PLANS TO MAKE ITS FRESHNESS DATES AN ISSUE FOR CONSUMERS A SPOKESMAN AT DR PEPPER/SEVENUP COS SAID THE COMPANY NEVER GETS COMPLAINTS ABOUT FRESHNESS PROBLEMS ADDING THAT SOFT DRINKS ARE SOLD SO QUICKLY THAT THERE IS NO PROBLEM WITH THEM LOSING FLAVOR STILL COKE AND OTHER BEVERAGE COMPANIES HAVE SAID THEY WOULD CONSIDER ADDING PROMINENT FRESHNESS DATES TO SOFTDRINK PACKAGES IF IT BECAME A BIG ENOUGH ISSUE WITH CONSUMERS INDUSTRY OFFICIALS SAID MANY PEPSI BOTTLERS OPPOSE THE MOVE SOME BOTTLERS FEAR THEY WILL INCUR THE COST OF TURNING OVER PRODUCTS UNNECESSARILY INDUSTRY OFFICIALS SAY AND BOTTLERS AREN'T SURE THE INITIATIVE WILL BE A BIG BOOST TO SALES INDUSTRY OFFICIALS SAY IF THE CONSUMER FINDS THIS A GREAT BIG HO HUM YOU'VE WASTED TIME AND MONEY AND YOU'VE TAKEN YOUR EYE OFF THE BALL SAID HARRY HERSH PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PEPCOM INDUSTRIES INC A PEPSI BOTTLER IN RALEIGH NC 9403300093 940330 US EXPECTED TO BACK TARIFFS IN FUJI RULING VICTORY FOR KODAK COULD BE BRIEF IF ITS RIVAL BUILDS PLANT IN SOUTH CAROLINA BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL THE US COMMERCE DEPARTMENT IS EXPECTED TO ISSUE A PRELIMINARY RULING TODAY THAT WILL PROPOSE TARIFFS THAT COULD BE SIGNIFICANT AGAINST FUJI PHOTO FILM CO FOR ILLEGALLY DUMPING COLOR PHOTOGRAPHIC PAPER IN THE US THE RULING WOULD BE A VICTORY FOR RIVAL EASTMAN KODAK CO WHICH FILED THE CASE AGAINST TOKYOBASED FUJI THE VICTORY HOWEVER MAY BE SHORTLIVED AS FUJI SAID IT WOULD TRY TO SPEED UP ITS PLANS TO BUILD A US PHOTOGRAPHICPAPER PLANT IN SOUTH CAROLINA IF IT ULTIMATELY LOSES THE CASE PAPER PRODUCED THERE WOULDN'T BE SUBJECT TO TARIFFS AND COULD ULTIMATELY TRIGGER A PRICE WAR HURTING ALL PAPER MANUFACTURERS WHILE BENEFITING CONSUMERS KODAK DECLINED TO COMMENT THE FUJI CASE IS YET ANOTHER THUNDERCLOUD DARKENING THE USJAPAN TRADE LANDSCAPE BUT BECAUSE DUMPING CASES WORK THROUGH A QUASIJUDICIAL SYSTEM THE ADMINISTRATION CAN'T ORCHESTRATE THEM AS IT WOULD OTHER TRADE ACTIONS IN ITS PETITION ROCHESTER NYBASED KODAK CLAIMS THAT FUJI CURRENTLY USES PROFITS FROM MONOPOLYLIKE SALES IN JAPAN TO SUBSIDIZE THE SELLING OF ITS PAPER IN THE US FOR PRICES AS LOW AS ONEFOURTH OF WHAT FUJI CHARGES IN JAPAN AND THE NETHERLANDS WHERE IT ALSO HAS PRODUCTION FACILITIES FUJI CURRENTLY DOESN'T PRODUCE PAPER IN THE US KODAK IS ASKING FOR TARIFFS AS STEEP AS 275 TO BE PLACED ON IMPORTED PHOTOGRAPHIC PAPER AND RELATED CHEMICALS PEOPLE CLOSE TO THE CASE SAY TODAY'S AMOUNT COULD HIT THE 200 MARK FUJI HAS A WIDE RANGE OF OPTIONS AVAILABLE IF THE TARIFFS ARE LEVIED ITS US PAPER PLANT IS SCHEDULED FOR COMPLETION IN LATE 1995 THE 250 MILLION PLANT IS EXPECTED TO ADD 300 NEW JOBS AND PRODUCE 12 BILLION SQUARE FEET OF COLOR PAPER ANNUALLY FLOODING AN ALREADY SATURATED PAPER MARKET BY MORE THAN 30 THE PLANT'S CAPACITY WILL BE TWICE THE AMOUNT OF COLOR PAPER THAT FUJI SOLD IN THE US DURING 1992 KODAK WILL SEE SOME SHORTTERM PRICING RELIEF BUT THEY WILL BE HURT IN THE LONG TERM SAID B ALEX HENDERSON AN ANALYST WITH PRUDENTIAL SECURITIES INC SHOULD FUJI BECOME A US PRODUCER IT COULD FREELY SET ITS PAPER PRICES BUT MR HENDERSON SAID THAT AFTER THE PLANT IS UP AND RUNNING FOR SEVERAL YEARS INDUSTRY PAPER PRICES COULD DROP BY 15 TO 20 A BOON FOR PHOTOFINISHERS AND CONSUMERS BUT A DRAIN ON PHOTOGRAPHY COMPANIES INCLUDING KONICA CORP AND MILES INC'S AGFA DIVISION MILES IS A UNIT OF GERMANY'S BAYER AG FUJI DECLINED TO DISCUSS ITS PRICING PLANS IF THE RULING IS AGAINST IT BUT A COMPANY SPOKESMAN SAID FUJI WOULD DO EVERYTHING TO SATISFY OUR CUSTOMERS UNTIL THE NEW FACILITY COMES ON LINE IF SUBSTANTIAL TARIFFS ARE LEVIED AGAINST FUJI PAPER PRICES COULD INCREASE IN THE SHORT RUN IF FUJI DECIDED THEY HAD TO RAISE PRICES BASED ON TARIFFS I'D HAVE TO LOOK FOR OTHER ALTERNATIVES SAYS DAVID C REYNOLDS VICE PRESIDENT OF GENOVESE DRUG STORES INC IN GLEN COVE NY BUT IT WOULD BE SHORT TERM UNTIL THEIR PLANT WAS UP AND PRODUCING THE COMMERCE DEPARTMENT MUST ISSUE A FINAL RULING IN AUGUST AFTER FURTHER INVESTIGATION AT WHICH POINT THE INTERNATIONAL TRADE COMMISSION MUST DECIDE WHETHER KODAK WAS THREATENED OR MATERIALLY INJURED BY THE DUMPING MARGIN BUT ANY TARIFFS ULTIMATELY LEVIED WOULD BECOME EFFECTIVE BASED ON PRICE DISCREPANCIES FROM TODAY ON FUJI COULD THEREFORE WARD OFF TARIFFS BY IMMEDIATELY LOWERING ITS PAPER PRICES IN JAPAN AND THE NETHERLANDS RAISING PRICES IN THE US OR BOOSTING ITS MARKET SHARE IN THE NETHERLANDS FUJI AND KODAK COULD ASK FOR AN ADMINISTRATIVE REVIEW A YEAR AFTER THE FINAL RULING BUT FOR NOW FUJI MUST POST A BOND TO COVER THE TARIFF MARGINS FOR ANY PAPER IMPORTED THE AMOUNT DEPENDENT ON THE COMMERCE DEPARTMENT'S RULING TODAY IF I WERE FUJI I WOULDN'T CHANGE MY PRICES AT ALL SAID MICHAEL ELLMANN AN ANALYST WITH WERTHEIM SCHRODER & CO I'D PAY ANY TARIFFS AND I'D EAT IT TO KEEP MY MARKET SHARE THE PRESUMPTION IS IF KODAK WANTS TO FORCE ME TO BUILD THE PLANT AND MAKE LIFE ROUGH FOR EVERYBODY THEN I WILL BOB DAVIS IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9403300092 940330 TEXAS JOURNAL HEARD IN TEXAS CATHOLIC FOUNDATION JOINS FLOCK OF RELIGIOUS GROUPS SELLING FUNDS BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS WHEN THE CATHOLIC FOUNDATION SET UP THE AQUINAS FAMILY OF MUTUAL FUNDS THE GOAL WAS TO BE FRUITFUL AND MULTIPLY THE FUNDS WITH 102 MILLION UNDER MANAGEMENT ARE SOME OF THE NEWEST ENTRANTS INTO THE WORLD OF PUBLIC MUTUAL FUNDS THEY'VE BEEN AROUND FOR JUST THREE MONTHS BUT THE CATHOLIC FOUNDATION IS HARDLY NEW TO WALL STREET IT HAS BEEN RUNNING THESE SAME FUNDS PRIMARILY FOR RELIGIOUS AND CHARITABLE INSTITUTIONS FOR ABOUT A DECADE UNDER THE NAME CATHOLIC COMMON FUND AND THE RETURNS YOU MIGHT CALL THEM WELL ALMOST HEAVENLY FOR THE PAST THREE YEARS THE AQUINAS EQUITY INCOME FUND RETURNED 1942 ANNUALLY WHILE ITS BENCHMARK THE STANDARD & POOR'S 500STOCK INDEX MANAGED 1562 THE AQUINAS EQUITY GROWTH FUND RECORDED A 2235 ANNUAL SHOWING OVER FIVE YEARS MORE THAN SEVEN PERCENTAGE POINTS BETTER THAN THE RUSSELL 3000 INDEX AND FOR 1993 THE AQUINAS FIXED INCOME FUND BESTED BY MORE THAN 11 THE SALOMON BROAD INDEX WHICH TRACKS INTERMEDIATE TAXABLE BONDS THESE CALCULATIONS CONSIDER THE FUNDS WHEN THEY WERE PART OF THE CATHOLIC COMMON FUND WHILE IT IS AQUINAS MONEY MANAGERS WHO DO THE STOCK PICKING FOUNDATION OFFICIALS JOKE THAT THE FUNDS MAY BE RECEIVING SOME EXTRA HELP WITH ALL THE PRIESTS AND NUNS WHO HAVE TRUSTED THEIR MONEY TO THE AQUINAS FUNDS WE HAVE A LOT OF PRAYING GOING ON TO PUSH OUR STOCKS UP SAYS BERNARD DIFIORE THE FOUNDATION'S EXECUTIVE DIRECTOR THE AQUINAS FUNDS NAMED FOR THOMAS AQUINAS THE 13TH CENTURY THEOLOGIAN AND PHILOSOPHER ARE THE LATEST EXAMPLE OF MUTUAL FUNDS TIED TO RELIGIOUS ORGANIZATIONS IN ADDITION TO THE CATHOLICS THE MENNONITES LUTHERANS AND MUSLIMS HAVE THEIR OWN MUTUAL FUNDS AND LIKE THEIR PEERS THE AQUINAS FUNDS SUPPORT SOCIALLY CONSCIOUS INVESTING BUT FOR THE CATHOLIC FOUNDATION THAT DOESN'T MEAN AN AVOIDANCE OF SOCALLED SIN STOCKS ASSOCIATED WITH TOBACCO GAMBLING AND LIQUOR INDEED THE AQUINAS EQUITY GROWTH FUND OWNS SHARES OF TOBACCO GIANTS PHILIP MORRIS AND UST INSTEAD AQUINAS LEANS TOWARD SHAREHOLDER AND COMMUNITY ACTIVISM RATHER THAN ROUTINELY DIVESTING ITSELF OF THE STOCKS OF COMPANIES WITH QUESTIONABLE PRACTICES THE CATHOLIC FOUNDATION IS MORE LIKELY TO TRY TO CHANGE DISQUIETING CORPORATE BEHAVIOR THROUGH LETTERWRITING CAMPAIGNS AND PROXY VOTES TO THAT END THE FOUNDATION IS PART OF THE NEW YORKBASED INTERFAITH CENTER ON CORPORATE RESPONSIBILITY A WATCHDOG GROUP REPRESENTING 250 RELIGIOUS INSTITUTIONS HOLDING 35 BILLION IN ASSETS THAT SEEKS TO INFLUENCE COMPANIES THROUGH CORPORATE GOVERNANCE RESOLUTIONS THE ISSUES WE ARE CONCERNED WITH ARE TINY PROBLEMS FOR A COMPANY MR DIFIORE SAYS SO YOU CAN MAKE MORE OF A CHANGE BY DEALING WITH A COMPANY AND GETTING THEM TO ADDRESS YOUR PROBLEM THAN YOU CAN BY SIMPLY DUMPING THE STOCK AND MOVING ON ADDITIONALLY THE FUNDS REACH OUT TO THE COMMUNITY THE AQUINAS FUNDS ARE NOLOAD FUNDS MEANING THEY HAVE NO UPFRONT CHARGES HOWEVER THE FUNDS DO CHARGE ANNUAL OPERATING EXPENSES OF 1 TO 15 OF ASSETS ANY PROFITS FROM THE MANAGEMENT FEES ARE DONATED TO THE CATHOLIC FOUNDATION TO BE DISTRIBUTED IN THE FORM OF GRANTS SCHOLARSHIPS AND ENDOWMENTS FOR EDUCATIONAL RELIGIOUS AND CHARITABLE ACTIVITIES THE FOUNDATION WAS BEGUN IN THE MID1950S TO BUILD AN ENDOWMENT PROGRAM AND TO OFFER FINANCIAL GUIDANCE TO CATHOLIC ORGANIZATIONS BECAUSE OF ITS SUCCESSES INCREASING THE NET WORTH OF CHURCHES AND SCHOOLS WITH THE CATHOLIC COMMON FUND THE FOUNDATION IN THE 1980S BEGAN FIELDING REQUESTS FROM INDIVIDUALS WHO WANTED IT TO MANAGE PART OF THEIR PORTFOLIOS THE FOUNDATION WASN'T EQUIPPED TO HANDLE THE RELATIVELY SMALL ACCOUNTS OF INDIVIDUAL INVESTORS BUT DEMAND DICTATED THAT THE FOUNDATION DO SOMETHING TO ADDRESS INVESTOR INTEREST SO ON JAN 1 THE FOUNDATION BOARD OF TRUSTEES SPLIT THE CATHOLIC COMMON FUND INTO THREE DISTINCT PARTS AND CREATED THE AQUINAS FUNDS SINCE THEN ASSETS UNDER MANAGEMENT HAVE INCREASED LESS THAN 10 AND THE CLIENTS ARE STILL PRIMARILY INSTITUTIONS WE HAVEN'T STARTED GETTING A LOT OF 1000 DEPOSITS YET MR DIFIORE NOTES BUT THE FOUNDATION IS JUST NOW GETTING AROUND TO ADVERTISING THE FUNDS' EXISTENCE TAKING OUT FULLPAGE ADS IN SMALL CATHOLIC NEWSPAPERS IN THE FIVE STATES IN WHICH THE FUNDS ARE REGISTERED FOR SALE TEXAS LOUISIANA ARKANSAS NEW YORK AND CALIFORNIA OTHER STATES WILL BE ADDED AS INVESTOR INTEREST MATERIALIZES THE AQUINAS FUNDS REQUIRE A MINIMUM 1000 INITIAL INVESTMENT THE FOUNDATION EMPLOYS THREE CORE CANONS IN MANAGING THE AQUINAS FUNDS ALLOCATE ASSETS FOR BALANCE INVEST FOR THE LONGTERM AND CONTINUALLY DIVERSIFY TO REDUCE RISK TO ENCOURAGE DIVERSITY THE FOUNDATION USES FIVE DIFFERENT FUND MANAGERS SPREAD ACROSS THE COUNTRY WE GET GREAT DIVERSITY THAT WAY BECAUSE ALL MANAGERS HAVE A LOCAL FLAVOR THAT COMES FROM INVESTING IN STOCKS IN THEIR REGION THAT THEY ARE MORE FAMILIAR WITH SAYS MR DIFIORE HERE IN DALLAS THE FOUNDATION ENLISTED JOHN MCSTAY INVESTMENT COUNSEL TO MANAGE PART OF THE EQUITY GROWTH FUND THE HOLDINGS INCLUDE HIGHPROFILE TEXAS STOCKS SUCH AS DALLAS'S SOUTHWEST AIRLINES FUNERALHOME GIANT SERVICE CORP INTERNATIONAL IN HOUSTON AND BRINKER INTERNATIONAL THE DALLAS RESTAURANT CHAIN THE GROWTH FUND'S COMANAGER IS SIRACH CAPITAL MANAGEMENT SEATTLE WHILE THE EQUITY INCOME FUND IS MANAGED OUT OF SAN FRANCISCO THE FIXED INCOME FUND IS SPLIT BETWEEN BOSTON AND STAMFORD CONN FOUNDATION OF DALLAS FOR THE FOLLOWING PERIODS ENDED DEC 31 1993 COMMON FUND IN ANNOUNCING LAST WEEK THAT IT FAILED TO WIN A TOLLCOLLECTION SYSTEM CONTRACT FOR AN INTERAGENCY GROUP MADE UP OF TOLL AUTHORITIES IN NEW JERSEY NEW YORK AND PENNSYLVANIA DALLAS'S AMTECH NOTED THE LOSS WILL HAVE MINIMAL IMPACT ON 1994 RESULTS BUT IT SEEMS INVESTORS DON'T SEE IT THAT WAY AMTECH'S STOCK LOST MORE THAN 38 OF ITS VALUE ON THE NEWS CLOSING THE WEEK AT 20 DOWN 1250 ADDING SALT TO THE WOUND ALEX BROWN & SONS DOWNGRADED AMTECH'S STOCK TO NEUTRAL FROM BUY IMMEDIATELY AFTER THE COMPANY ANNOUNCED IT HAD FAILED TO SECURE THE CONTRACT LOMAS FINANCIAL STOCK SOARED EARLY IN THE WEEK ONLY TO CRASH DAYS LATER THE DALLAS RESIDENTIAL MORTGAGE COMPANY ANNOUNCED LAST TUESDAY THAT IT WAS CONSIDERING MERGING WITH OR BEING ACQUIRED BY ANOTHER COMPANY TO HELP MAXIMIZE SHAREHOLDER VALUE INVESTORS BID THE STOCK UP 23 TO 925 IN ONE DAY THEN LATE IN THE WEEK CNBC COMMENTATOR DAN DORFMAN QUOTED OPPENHEIMER ANALYST STEVE EISMAN AS SAYING ANYONE WHO PAYS MORE THAN 4 A SHARE FOR LOMAS IS OUT OF HIS MIND THAT SENT THE STOCK TUMBLING TO 8 UP 50 CENTS FOR THE WEEK MR EISMAN SAYS LOMAS HAS A LOUSY BOTTOM LINE AND HAS GROSSLY OVERSTATED ITS BOOK VALUE AT 1124 A SHARE MR EISMAN SAYS BOOK VALUE IS CLOSER TO 3 A SHARE THE COMPANY OF COURSE DISAGREES MOORCO INTERNATIONAL HOUSTON DROPPED NEARLY 12 TO 15875 AFTER THIRDQUARTER EARNINGS FAILED TO MEET THE EXPECTATIONS OF ANALYSTS FOR THE QUARTER ENDED FEB 28 THE MAKER OF FLUIDCONTROL PRODUCTS FOR THE DRILLING INDUSTRY REPORTED NET INCOME OF 29 MILLION OR 25 CENTS A SHARE ANALYSTS HAD EXPECTED EARNINGS OF 28 CENTS A SHARE FOR THE YEAREARLIER QUARTER MOORCO EARNED 24 MILLION OR 20 CENTS A SHARE 9403300091 940330 INSIDE TRACK BLECH BIOTECH MOGUL SHAKES UP PORTFOLIO AMID A CHOPPY MARKET BY WARREN GETLER AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL DAVID BLECH AN AGGRESSIVE INVESTOR IN BIOTECH STOCKS IS SHAKING UP HIS PORTFOLIO IN A BIG WAY AT A TIME WHEN BIOTECH SHARES HAVE BEEN AMONG THE WORST PERFORMERS IN THIS YEAR'S CHOPPY MARKET MR BLECH DECLINES TO COMMENT BUT THE BIOTECH MOGUL HAS A REPUTATION FOR TRYING TO BOOST THE PRICES OF STOCKS HE'S INVESTED IN LONG TERM AND FOR SUPPORTING THE SHARE PRICES OF COMPANIES THAT HIS BROKERAGE FIRM HAS TAKEN PUBLIC TRADERS SAY MR BLECH IS THE CHAIRMAN OF D BLECH & CO A NEW YORK BROKERAGE FIRM THAT SPECIALIZES IN FINANCING BIOTECHNOLOGY COMPANIES IN THE FIRST QUARTER MR BLECH DUMPED LARGE CHUNKS OF HIS HOLDINGS IN TWO BIOTECH STOCKS RIBI IMMUNOCHEM RESEARCH INC AND NEORX CORP FOR ABOUT 16 MILLION IN TOTAL AND INVESTED ABOUT 7 MILLION IN 10 OTHER MOSTLY SMALLER AND LITTLEFOLLOWED BIOTECH FIRMS RECENT FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW A NUMBER OF THOSE COMPANIES TARGETED FOR INVESTMENT WERE TAKEN PUBLIC BY MR BLECH'S WHOLLYOWNED BROKERAGE DURING THE PAST YEAR SEC FILINGS SHOW THAT MR BLECH'S TRUSTS SOLD ABOUT 12 MILLION SHARES IN RIBI BETWEEN JAN 13 AND JAN 18 AT AN AVERAGE 10 EACH FOR APPROXIMATELY 12 MILLION MR BLECH THEN UNLOADED ON JAN 18 NEARLY 500000 SHARES IN NEORX AT AN AVERAGE 850 EACH FOR MORE THAN 4 MILLION IN TOTAL IN BOTH CASES MR BLECH PROFITED HANDSOMELY HE AND HIS TRUSTS SOLD THE SHARES AFTER EXERCISING LARGE NUMBERS OF WARRANTS ACQUIRED AT SIGNIFICANT DISCOUNTS TO THE ULTIMATE SALE PRICE WARRANTS CONFER THE RIGHT TO BUY A CERTAIN NUMBER OF SHARES AT A FIXED PRICE AT A LATER TIME MR BLECH HAS ACQUIRED LARGE NUMBERS OF WARRANTS IN BIOTECH FIRMS SUCH AS RIBI AND NEORX BY PROVIDING SORELY NEEDED CASH VIA PRIVATE PLACEMENTS AND OTHER OFFERINGS TO THE COMPANIES BIOTECH FIRMS ARE IN DESPERATE NEED OF CAPITAL FOR PRODUCT DEVELOPMENT IN AN OVERCROWDED MARKET AND PROFITS REMAIN ELUSIVE ANALYSTS SAY INDEED D BLECH & CO HAS BECOME KNOWN ON WALL STREET AS THE PLACE WHERE MANY BIOTECHNOLOGY COMPANIES SEEK HELP RAISING MONEY EVEN AFTER BEING REJECTED BY OTHER FIRMS MONEY MANAGERS SAY D BLECH & CO HAS UNDERWRITTEN NINE OFFERINGS IN THE LAST EIGHT MONTHS D BLECH & CO CAN GET A DEAL DONE MONEY MANAGERS SAY BECAUSE MR BLECH AND HIS TEAM HAVE DEVELOPED AN EXTENSIVE NETWORK OF RETAIL BROKERS TO SELL A STOCK BUT BUILDING SUCH A NETWORK REQUIRES A LOT OF MONEY AND MANY ANALYSTS SUGGEST THAT MR BLECH'S PORTFOLIO SHAKEUP MAY BE AIMED AT RAISING CASH THAT MAY EXPLAIN PART OF THE REASON FOR HIS SELLING SUCH A LARGE POSITION IN RIBI A COMPANY THAT SOME ANALYSTS THINK CAN TURN PROFITABLE BY 1996 ON THE STRENGTH OF ITS VARIOUS VACCINE PRODUCTS AND ITS PROMISING ANTICANCER THERAPY MELACINE FOR MALIGNANT MELANOMA THEY ADD THAT MR BLECH'S SELLING MAY SIMPLY BE PROFIT TAKING IN THE WAKE OF A GOOD RUN SAYS WOLE FAYEMI A BIOTECHSTOCK ANALYST WITH HAMBRECHT & QUIST IN NEW YORK THIS WAS CLEARLY THE CASE OF PROFITTAKING FROM AN EARLIER INVESTMENT HIS AVERAGE STRIKE PRICE ON HIS RIBI WARRANTS WAS BETWEEN 3 AND 360 A SHARE AND HE SOLD THE STOCK IN THE 9 TO 10 REGION MR FAYEMI SAYS RIBI IS ONE OF HIS TOP STOCK PICKS FOR THE YEAR ON THE BASIS OF MELACINE'S PIVOTAL PHASE III CLINICAL DATA EXPECTED TO BE RELEASED THIS SUMMER ANALYSTS ARE SOMEWHAT AT A LOSS TO EXPLAIN WHY MR BLECH HAS INJECTED ABOUT 7 MILLION INTO 10 OTHER BIOTECH FIRMS THAT SEEM LESS PROMISING SOME SAID HE IS BUYING THESE STOCKS MANY OF WHICH HIS BROKERAGE HELPED TO GO PUBLIC SIMPLY TO KEEP THEM AFLOAT THE BROKERAGE HAS TO SUPPORT THE PRICES OF THE STOCKS BECAUSE NO ONE ELSE WILL PARTICULARLY IN THIS JITTERY MARKET AS A GROUP BIOTECH RANKED SECOND FROM THE BOTTOM IN PERFORMANCE THIS QUARTER DOWN 171 ONLY ENTERTAINMENT STOCKS DID WORSE POSTING AN 184 DECLINE THUS FAR THIS YEAR IN HIS LARGEST PURCHASE THIS QUARTER MR BLECH AND HIS RELATED TRUSTS APPEAR TO HAVE INVESTED ABOUT 5 MILLION IN THE STOCK AND WARRANTS OF INTERFERON SCIENCES INC ACCORDING TO HIS SEC FILING MR BLECH ACQUIRED 248 MILLION SHARES PAYING 4 A UNIT WITH EACH UNIT COMPRISING TWO SHARES AND TWO WARRANTS EACH THE PURCHASES BETWEEN DEC 12 AND JAN 3 LIFTED HIS TOTAL HOLDINGS IN THE COMPANY TO 45 MILLION SHARES MARKET PROS WHO ANALYZE SEC INSIDER FILINGS SAY THE INTERFERON FILING BY MR BLECH IS SOMEWHAT CONFUSING THE FACT THAT EACH UNIT ACCORDING TO HIS FILING CONSISTS OF TWO SHARES AND TWO WARRANTS IMPLIES THAT HIS PURCHASE PRICE FOR THE STOCK WAS LESS THAN 2 A SHARE AT A TIME WHEN THE SHARES WERE GOING FOR WELL OVER 450 A PIECE SAYS BOB GABELE PRESIDENT OF CDA/INVESTNET A FORT LAUDERDALE FLA FIRM THAT TRACKS AND ANALYZES INSIDER ACTIVITY IN FEBRUARY MR BLECH ACQUIRED 169200 SHARES IN TEXAS BIOTECHNOLOGY CORP AT AN AVERAGE PRICE OF 680 FOR ONE UNIT WHICH CONSISTS OF ONE SHARE AND ONE WARRANT THAT FEBRUARY PURCHASE PRICE WAS IN LINE WITH THE MARKET PRICE AT THE TIME MR BLECH WHOSE FIRM TOOK TEXAS BIOTECH PUBLIC IN MIDDECEMBER CURRENTLY HOLDS SOME 21 MILLION SHARES OF THE COMPANY MR BLECH'S OTHER PURCHASES THIS QUARTER INCLUDED SMALLER STAKES IN BIOTECHNOLOGY CORP NEOPROBE CORP ENVIROGEN INC MICROPROBE CORP INCYTE PHARMACEUTICALS INC ADVANCED SURGICAL INC PHARMOS CORP AND ECOGEN INC D BLECH & CO TOOK ADVANCED SURGICAL PUBLIC IN AUGUST MICROPROBE IN SEPTEMBER ENVIROGEN IN OCTOBER AND INCYTE IN NOVEMBER MR FAYEMI THE HAMBRECHT ANALYST SAYS HE ISN'T A GREAT FAN OF ANY OF THE STOCKS TARGETED BY MR BLECH FOR INVESTMENT THIS QUARTER OF ALL THE PUBLIC BIOTECH DRUG COMPANIES I THINK THERE ARE MORE INTERESTING PLAYS TO FOLLOW HE OBSERVES AS PREVIOUSLY REPORTED SEC ENFORCEMENT INVESTIGATORS HAVE BEEN LOOKING AT WHETHER MR BLECH MAY HAVE VIOLATED SECURITIES LAWS BY BESTOWING CHEAP STOCK ON MONEY MANAGERS AND OTHERS PRIOR TO PUBLIC OFFERINGS IN THE PAST MR BLECH SOLD CHEAP STOCK AND WARRANTS TO BROKERS AND INFLUENTIAL WALL STREET EXECUTIVES WHO THEN HAD A VESTED INTEREST IN PROMOTING HIS DEALS TO INVESTORS MR BLECH HAS DENIED ANY WRONGDOING 9403300090 940330 TEXAS JOURNAL FOR TEXAS RICE GROWERS IT'S NOW OR NEVER BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL IS IT TIME TO SAY GOODBYE TO THE TEXAS RICE INDUSTRY AS TEXAS RICE FARMERS BEGIN TO PLANT THEIR 1994 CROPS IT IS WITH GROWING TREPIDATION ONCE THE LARGEST RICE PRODUCER IN THE US THE LONE STAR STATE IS NOW BARELY HOLDING ONTO FOURTH PLACE LAST YEAR GROWERS PLAGUED BY BAD LUCK BAD WEATHER AND INCREASING COSTS TURNED OUT THE SMALLEST CROP IN 30 YEARS THE INDUSTRY'S STRUGGLES HAVE FORCED THE CLOSING OF DOZENS OF MILLS DRYING FACILITIES AND IRRIGATION COMPANIES IN RECENT YEARS THINGS CAN'T GET MUCH WORSE INDUSTRY OFFICIALS SAY IF THE STATE'S RICE INDUSTRY DOESN'T STAGE A COMEBACK THIS YEAR IT PROBABLY NEVER WILL IF WE'RE GOING TO MAKE IT AS AN INDUSTRY THIS YEAR IS GOING TO BE MAKE OR BREAK SAYS JIM STANSEL RESIDENT DIRECTOR OF TEXAS A&M RESEARCH AND EXTENSION CENTER AT BEAUMONT THE STAKES ARE HIGH FOR STARTERS THERE ARE THE 6300 JOBS THAT THE INDUSTRY PROVIDES AND THE 850 MILLION IT CONTRIBUTES TO THE ECONOMIES OF THE 17 GULF COAST COUNTIES KNOWN AS THE TEXAS RICE BELT IN ADDITION THE STATE'S 300000 ACRES OF RICE PADDIES PROVIDE A WINTER HABITAT FOR WILDLIFE AND ACT AS A NATURAL FILTRATION SYSTEM FOR THE WATER SUPPLY IN MANY WAYS THE GULF COAST IS AN IDEAL SETTING FOR RICE GROWERS IT'S CLOSE TO THE PORTS OF HOUSTON AND FREEPORT AN UNUSUALLY LONG GROWING SEASON GIVES TEXAS FARMERS A LATESEASON SECOND CROP KNOWN AS THE RATOON CROP AND BECAUSE TEXAS IS AMONG THE FIRST OF THE SIX RICEPRODUCING STATES TO HARVEST GROWERS HERE USUALLY REAP THE HIGHEST PRICES BUT OVER THE YEARS THOSE ADVANTAGES HAVE BEEN ERODED BY INCREASES IN THE COST OF PRODUCTION BECAUSE THE STATE'S RICE INDUSTRY IS CONCENTRATED IN THE HOUSTON AREA THE CITY'S GROWTH HAS PUSHED UP LAND COSTS THE GULF COAST CLIMATE ALSO HAS MADE IT DIFFICULT FOR FARMERS TO FIND ALTERNATIVE CROPS TO SUBSIDIZE THEM DURING THE OFFSEASON OR DURING MAJOR PRICE PLUNGES IN THE PAST FEW YEARS UNUSUALLY RAINY SPRINGS HAVE DELAYED PLANTING AND ELIMINATED MUCH OF THE VALUABLE RATOON CROP BUT THE MOST CRITICAL ISSUE FOR RICE FARMERS IS THE SCARCITY OF WATER IN TEXAS GROWERS ARE FORCED TO EITHER PAY HIGH PRICES TO PUMP WATER OUT OF THE GROUND OR PURCHASE REGULATED SURFACE WATER FROM THE STATE'S SYSTEM OF RIVER AUTHORITIES JACKO GARRETT WHO FARMS 1300 ACRES IN DANBURY PAYS AN AVERAGE OF 70 AN ACRE FOR WATER THAT COMPARES WITH COSTS AS LOW AS 10 AN ACRE FOR ARKANSAS RICE FARMERS THE WATER SUPPLY FOR CROPS IS NOT THERE SAYS MR GARRETT IN THE FUTURE IT'S GOING TO BE HARDER AND HARDER OVER THE PAST SEVERAL YEARS THE RISING COSTS HAVE BEEN COMPOUNDED BY LOWER RICE PRICES TO GROWERS A RECENT TEXAS A&M STUDY FOUND THAT TEXAS FARMERS WITH THEIR HIGHER PRODUCTION COSTS NEED TO SELL RICE FOR ABOUT 9 A HUNDREDWEIGHT TO BREAK EVEN BUT RICE PRICES IN RECENT YEARS HAVE HOVERED AROUND 4 TO 5 AND TO MAKE MATTERS WORSE MOST TEXAS GROWERS MISSED OUT ON A SPIKE IN RICE PRICES LAST FALL CAUSED BY AN EMERGENCY JAPANESE PURCHASE TEXAS FARMERS HAD SOLD THEIR HARVEST JUST WEEKS EARLIER AS A RESULT OTHER STATES COLLECTED TWICE THE PRICE FOR THEIR CROPS THAN DID TEXAS THE TOLL ON THE TEXAS INDUSTRY IS CLEAR IN THE PAST 10 YEARS THE OTHER FIVE RICEPRODUCING STATES ARKANSAS CALIFORNIA LOUISIANA MISSISSIPPI AND MISSOURI HAVE INCREASED PRODUCTION AN AVERAGE OF 18 IN THE SAME PERIOD TEXAS PRODUCTION SLIPPED BY 20 THE DROP IN RICE PRODUCTION HAS MADE IT DIFFICULT FOR RELATED BUSINESSES MILLS IRRIGATION COMPANIES AND DRYING FACILITIES TO STAY AFLOAT THREE YEARS AGO P&S RICE MILL IN HOUSTON ONE OF THE COUNTRY'S LARGEST RICE MILLS SHUT DOWN GROWERS SAY ONLY TWO OR THREE MILLS NOW BID AT RICE AUCTIONS COMPARED WITH SEVEN OR EIGHT A FEW YEARS AGO LAST YEAR RICE BELT WAREHOUSE INC OF EL CAMPO MOTHBALLED A RICEDRYING FACILITY IN ROSHARON BECAUSE THE RICE CROP WASN'T LARGE ENOUGH TO JUSTIFY KEEPING IT OPEN MOST OF THE MILLS SEEM TO BE HOLDING THEIR OWN BUT THERE HAVE BEEN SOME PROBLEMS KEEPING AFLOAT SAYS JIM PAVLIK RICE BELT'S SEEDDIVISION MANAGER THIS IS A VERY CRITICAL YEAR DESPITE THESE WOES TEXAS RICE PRODUCERS AND INDUSTRY OFFICIALS SAY THEY ARE OPTIMISTIC RECENT HIGH PRICES ARE EXPECTED TO INCREASE PLANTING BY 15 THIS YEAR ALTHOUGH TOO MUCH RICE ON THE MARKET COULD CAUSE PRICES TO PLUNGE AGAIN GROWERS ARE HOPEFUL THAT INCREASED DEMAND WILL KEEP THAT FROM HAPPENING IN ADDITION A TEXAS RICE INDUSTRY TASK FORCE IS CONSIDERING FORMING A RICE MARKETING COOPERATIVE IN THE NEXT MONTH TO ALLOW FOR A MORE ORDERLY SALE OF TEXAS RICE AND TO PROTECT INDIVIDUAL GROWERS FROM BIG PRICE SWINGS THE TASK FORCE HAS ALSO STEPPED UP RESEARCH INTO ALTERNATIVE CROPS FOR DORMANT RICE LAND AND WAYS TO CUT PRODUCTION COSTS FOR TEXAS FARMERS A YEAR AGO I WOULD HAVE TOLD YOU I WAS VERY WORRIED ABOUT THE TEXAS RICE INDUSTRY SAYS STEVE BALAS AN EAGLE LAKE GROWER WHO FARMS 1000 ACRES AND IS A MEMBER OF THE TASK FORCE STEERING COMMITTEE TODAY I BELIEVE WE CAN TURN IT AROUND I THINK IT'S BOTTOMED OUT 9403300089 940330 TEXAS JOURNAL THE REAL CHALLENGE CAN HE TURN TEXAS REAL ESTATE INTO POETRY BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS TO MICHAEL B DECKER BEING A SUCCESSFUL BUSINESS EXECUTIVE IS A MATTER OF RHYME AND REASON MR DECKER THE NO 2 MAN AT THE REALESTATE FIRM TRAMMELL CROW CO IS ALSO A WEEKEND POET WHOSE WORK HAS APPEARED IN THE NEW REPUBLIC AND HAS BEEN ACCEPTED FOR THE PARIS REVIEW NEXT TUESDAY MR DECKER WILL HAVE A READING AT SOUTHERN METHODIST UNIVERSITY NOT THE SORT OF VENUE YOU MIGHT EXPECT TO FIND A MAN STEEPED IN INCOME STATEMENTS BUT MR DECKER WHO IS TRAMMELL CROW'S CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER SAYS THE TWO SEEMINGLY POLAR PURSUITS ACTUALLY HAVE A LOT IN COMMON HE SAYS THE ABILITY TO ZERO IN ON WHAT'S IMPORTANT IS THE KEY IN PROSE AS IN PERSONNEL IN WORDS AS IN WORK POETRY MAKES YOU FOCUS ON WHAT MATTERS AND MANAGEMENT REALLY COMES DOWN TO KNOWING WHAT IS IMPORTANT FOR PEOPLE MR DECKER SAYS MORE THAN JUST A HOBBY PICKED UP ON BORING AIRPLANE FLIGHTS THE 44YEAROLD MR DECKER HAS BEEN WRITING POETRY SINCE HIS PRINCETON DAYS 25 YEARS AGO HE STUDIED AT OXFORD AND CONTINUED WRITING ALTHOUGH HE SAYS HE WON'T MAKE A CAREER OF IT LIKE INSURANCE EXECUTIVE WALLACE STEVENS OR ADVERTISING COPYWRITER JAMES DICKEY NOW MR DECKER SAYS HE TRIES TO WRITE EVERY OTHER DAY MIXING AND MATCHING UNTIL THE RIGHT THINGS SHOW UP ON A PAGE BUT HE SAYS LIGHTNING STRIKES ONLY ABOUT ONCE A YEAR THROUGH HIS PURSUIT OF POETRY MR DECKER ALSO HOPES TO REMIND EMPLOYEES NOT TO PIGEONHOLE WORKERS BY JOB TITLES PEOPLE ARE BUNDLES OF POTENTIAL HE SAYS THE MORE WE CAN TAP THAT ENERGY THE MORE YOU GET OUT OF LIFE AND THE MORE BALANCED AND ENTHUSED PEOPLE ARE AS FOR THEMES IN HIS ARTISTIC WORK MR DECKER OCCASIONALLY SLIPS IN BUSINESSMEN IN GRAY SUITS NOT AS POSITIVE OR NEGATIVE FIGURES BUT AS PEOPLE WITH PROBLEMS TO RESOLVE MORE OFTEN THOUGH HIS POEMS REVOLVE AROUND WATER WHICH PROVIDES CONNECTIVITY BETWEEN THINGS TRANSIENT AND PERMANENT I'M NOT SURE I'D BE AS EFFECTIVE IN BUSINESS HE SAYS IF I DIDN'T HAVE THE ABILITY TO LOOK AT THINGS AS PURE AS THEY ARE 9403300087 940330 HOUSING BUILDERS SLANT ROOFS ADD WINDOWS TO ENTICE BUYERS BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL AFTER 18 MONTHS OF LOOKING BETH ROGERS COULDN'T FIND A NEW HOUSE IN THE DALLAS AREA THAT APPEALED TO HER EVERYTHING LOOKED ALIKE SHE SAYS MRS ROGERS' COMPLAINT WAS BEING ECHOED BY OTHER HOUSE HUNTERS BORED WITH THE COOKIECUTTER REDBRICK OFFERINGS OF HOME BUILDERS SAY OFFICIALS AT DALLASBASED CENTEX CORP THE NATION'S LARGEST HOME BUILDER SO THE COMPANY DECIDED TO TRY SOMETHING DIFFERENT SYNTHETIC STONE AND STUCCO FACADES WITH CURVED HIGHPITCHED ROOFS COPIED FROM OLDER WEALTHIER DALLAS NEIGHBORHOODS MRS ROGERS JUMPED AT THE NEW MORE TRADITIONAL STONE MANOR DESIGN AND PICKED OUT A LOT IN THE COLONY A PLANNED COMMUNITY THAT STARTED IN THE EARLY 1980S THERE'S MORE PERSONALITY TO THE OUTSIDE SHE SAYS IF YOU USE YOUR IMAGINATION YOU CAN ALMOST PICTURE YOURSELF IN ENGLAND CONSUMER BACKLASH AGAINST COPYCAT HOME DESIGN HAS BEGUN TO SHOW UP IN FOCUS GROUPS IN SEVERAL WESTERN MARKETS HOME BUILDERS SAY AS A RESULT NEW STYLES ARE CREEPING INTO MARKETS IN CALIFORNIA ARIZONA NEVADA AND TEXAS IN SUBURBAN PHILADELPHIA TOLL BROTHERS INC A MAJOR EAST COAST BUILDER IS NOW USING AN EQUAL MIX OF BRICK WOOD STUCCO AND STONE EXTERIORS INSTEAD OF THE ONCEDOMINANT PENNSYLVANIA STONE DESIGN PEOPLE WANT SOMETHING DIFFERENT SAYS MICHAEL WOODLEY SENIOR VICE PRESIDENT OF ARCHITECTURE AT CALIFORNIABASED KAUFMAN & BROAD HOME CORP MARKET ANALYSTS IN SOUTHERN CALIFORNIA SAY THAT HOME BUYERS ARE MORE CONCERNED ABOUT THEIR HOMES' DESIGN NOW BECAUSE THEY EXPECT TO LIVE IN THEIR HOUSES LONGER AND SPEND MORE TIME AT HOME IT'S GOING BACK TO THE WAY IT WAS IN THE '50S AND '60S IT'S A RETURN TO BASICS SAYS BOB MIRMAN PRESIDENT OF NATIONAL SURVEY SYSTEMS A CALIFORNIA MARKETRESEARCH FIRM WHEN CUSTOMERS IN DALLAS BEGAN SAYING THEY WANTED A NEW LOOK CENTEX SENT ITS ARCHITECTS TO FANCY NEIGHBORHOODS LOOKING FOR POPULAR FEATURES NOW ITS ENTRY ARCHES ARE PULLED DOWN TO APPEAR MORE COZY THAN THE BOLD IMPOSING SPANS POPULAR THROUGH THE 1980S THE STONE ON THE FACADE IS MANUFACTURED WITH IMPERFECTIONS TO GIVE IT A NATURAL APPEARANCE AND STEEPER PITCHES TO THE ROOFS GIVE MORE OF A CUSTOMHOME EFFECT WHILE WINDOWS IN THE ATTIC CURVED ROOFS AND SLOPED CORNICES GIVE THE HOMES MRS ROGERS' ENGLISH LOOK HOME INTERIORS ARE CHANGING TOO MANY HOME BUILDERS ARE OPENING UP FLOOR PLANS BY ADDING WINDOWS AND RAISING CEILINGS MR MIRMAN SAYS BUYERS ARE WILLING TO SACRIFICE SPACE IN THE LIVING ROOM DINING ROOM AND MASTER BEDROOM FOR LARGER FAMILY ROOMS AND KITCHENS THEY ALSO WANT BIGGER SECONDARY BEDROOMS BECAUSE THEY FIGURE THEIR CHILDREN MAY GROW INTO TEENAGERS IN THE HOUSE AND THEY MAY NEED A HOME OFFICE THEY DON'T WANT THE GLITZ AND GLAMOUR OF THE '80S ANYMORE HE SAYS IN THE '80S WE BUILT BIG MASTERBEDROOM SUITES NOW THE REQUIREMENT IS FUNCTION OVER STYLE BEYOND KEEPING UP WITH FASHION TRENDS BUILDERS SEE THE NEW DESIGNS AS PROFITMARGIN BOOSTERS SAYS RL BROWN PUBLISHER OF THE PHOENIX HOUSING MARKET LETTER WHEN BUILDERS CONSTRUCT ESSENTIALLY THE SAME HOUSE AND PAY ROUGHLY THE SAME AMOUNT FOR MATERIALS AND LABOR THE CONSUMER GOES FOR THE CHEAPEST AND THAT'S THE ONE THAT THE GUY IS MAKING THE LEAST MONEY ON HE EXPLAINS IN ADDITION HOME BUILDERS WHILE BASKING IN RECORD PROFITS BECAUSE OF THE NEWLY ROBUST HOUSING MARKET HAVE BEGUN POSITIONING THEMSELVES FOR THE INEVITABLE DOWNTURN YOU WANT TO AVOID A DIRECT COMPARISON WITH OTHER HOMES MR BROWN SAYS YOU WANT TO OFFER A REASON OTHER THAN PRICE TO BUY YOUR HOME BUT THE NEW DESIGNS MAY NOT REMAIN UNIQUE FOR LONG IN A BUSINESS WHERE SUCCESSES ARE QUICKLY COPIED RICHARD SCONYERS HEAD OF CENTEX'S SOUTHWEST HOMEBUILDING DIVISION POINTS TO LOCAL NEWSPAPER ADS AS EVIDENCE THAT OTHER COMPANIES ARE ALREADY COPYING THE COMPANY'S DESIGNS CENTEX SAYS THE INITIAL RESPONSE TO STONE MANOR HAS BEEN SO POSITIVE THAT IT WILL REPLACE ALL ITS TEXAS OFFERINGS WITH THE 15MODEL LINE THOUGH A REDBRICK VERSION WILL ALWAYS BE AVAILABLE STONE MANOR PRICES RANGE FROM 113000 FOR A THREEBEDROOM 1869SQUAREFOOT HOUSE IN A DISTANT EASTERN DALLAS SUBURB TO 187950 FOR A FOURBEDROOM 3135SQUAREFOOT HOUSE WITH A BONUS FAMILY ROOM IN THE HOT AREAS NORTH OF THE CITY SINCE THE LINE'S INTRODUCTION IN LATE JANUARY MR SCONYERS SAYS PRELIMINARY SALES FIGURES SHOW 35 OF BUYERS ARE CHOOSING THE NEW DESIGNS WHEN THEY'RE AVAILABLE THE COMPANY IS ALSO REDOING ITS PHOENIX OFFERINGS OFFERING A NEW PRAIRIE SERIES INSPIRED BY FRANK LLOYD WRIGHT AND THE PRAIRIE SCHOOL OF ARCHITECTURE THE RAMBLING ONESTORY HOUSES ARE DESIGNED WITH FLATTER ROOFS FOR A MORE HORIZONTAL CONTEMPORARY LOOK IT'S MORE CLASSICALLY SIMPLE THAN ALL THAT SPANISH STUFF SAYS CENTEX'S CHIEF ARCHITECT DAVID WHEATLEY WHO SPENT 16 YEARS IN THE WRIGHT ORGANIZATION KAUFMAN & BROAD HAS ADDED STONE AND BRICK ACCENTS TO ITS STUCCO HOMES IN PHOENIX OTHER BUILDERS THERE ARE CHANGING THE COLOR OF THE STUCCO MOVING AWAY FROM WHITE AND PEACH TOWARD EARTHIER TONES IN CALIFORNIA KAUFMAN & BROAD OFFERS AN EAST COASTSTYLE HOME WITH WOOD SIDING WOOD SHUTTERS AND A RAISED FRONT PORCH BIG ENOUGH FOR SITTING OUT AND CHATTING IN THE EVENING THAT'S WHAT HOUSES IN NEW HAVEN CONN HAVE SAYS MR WOODLEY K&B'S CHIEF ARCHITECT BUT IN ANTELOPE VALLEY THE DESIGN IS NEW AND POPULAR IT'S LIKE AN EXTRA ROOM HE SAYS YOU EXPECT TO SEE SOMEONE SPITTING WATERMELON SEEDS WHILE THE SCREEN DOOR SLAMS SOME ANALYSTS WONDER WHETHER HOME BUYERS' FASCINATION WITH THE NEW DESIGNS WILL LAST BUILDERS HAVE TRIED TO GET AWAY FROM THE NORTH DALLAS SPECIAL' BEFORE WITH LITTLE SUCCESS NOTES RON WITTEN OF M/PF REAL ESTATE RESEARCH IN DALLAS THE QUESTION IS WILL IT SELL AT ONE CENTEX SUBDIVISION WHERE THE STUCCO HAS ALREADY CHIPPED OFF AROUND THE TOP OF A MODELHOME FRONT WINDOW A SALESWOMAN SAYS ONLY 20 OF CUSTOMERS ARE LOOKING AT THE NEW SERIES WHICH TYPICALLY COSTS 2000 TO 3000 MORE AND REALESTATE AGENTS BELIEVE BUYER CONCERNS ABOUT RESALE VALUES MAY KEEP SOME CUSTOMERS FROM BREAKING AWAY FROM THE PACK I HAD ONE CLIENT WHO LIKED THE STONE BUT THERE WAS SO MUCH BRICK AROUND THEY WERE INTIMIDATED AND CHOSE BRICK SAYS ELLEN VERLANIC OF MURRAY REALTORS THOSE FEARS AND THE MARKET'S RECENT TORRID PACE HAVE PROMPTED SOME BUILDERS TO GO SLOW IN CHANGING THEIR DESIGNS KAUFMAN & BROAD SET UP SHOP IN DENVER LAST YEAR AND FOUND THAT CONSUMERS WERE PERFECTLY HAPPY WITH COPYCAT WOODSIDED HOMES CONTINENTAL HOMES HOLDING CORP THE BIGGEST BUILDER IN PHOENIX SAYS IT PLANS NO CHANGES THERE SALES ARE SO GOOD SAYS RANDY THOVSON HEAD OF PRODUCT DEVELOPMENT THAT BASICALLY WE'RE JUST AN ORDER TAKER IN THIS MARKET BUT STANDING PAT MAY BE DANGEROUS TODAY'S HOME BUYER IS CERTAINLY MORE PARTICULAR THAN EVER BEFORE SAYS MR BROWN THE PHOENIXBASED MARKET RESEARCHER THE BUILDER WHO WANTS TO STICK WITH PLAIN VANILLA WILL GET LEFT IN THE DUST 9403300086 940330 POLITICS & POLICY CLINTON'S MOVE TO SPEED HANDLING OF REQUESTS FOR POLITICAL ASYLUM RAISES CRITICS' SKEPTICISM BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL FOR TWO YEARS KARNAIL SINGH SAT BEHIND HIGH WALLS ELECTRIC GATES AND SWIRLING RAZOR WIRE IN SAN PEDRO CALIF 8000 MILES FROM HOME HE WASN'T A CONVICT AND NO ONE CONSIDERED HIM DANGEROUS YET HE WAS HELD WITHOUT BAIL IN A FEDERAL DETENTION CENTER HERE MR SINGH A SIKH WHO IS A VOCAL OPPONENT OF THE GOVERNMENT OF INDIA LANDED AT LOS ANGELES INTERNATIONAL AIRPORT IN JANUARY 1992 AND SOUGHT POLITICAL ASYLUM BUT LIKE THOUSANDS OF ASYLUM SEEKERS FLEEING A HOSTILE GOVERNMENT HE BECAME A PRISONER OF A SEVERELY OVERLOADED AND POORLY MANAGED US IMMIGRATION SYSTEM YESTERDAY THE CLINTON ADMINISTRATION ANNOUNCED WHAT IT CALLED A NEW FASTTRACK HANDLING OF ASYLUM CLAIMS BY THE JUSTICE DEPARTMENT'S IMMIGRATION AND NATURALIZATION SERVICE BUT SKEPTICS QUESTION HOW MUCH THE CHANGES WILL SPEED THE PROCESS OF SORTING OUT WHO SHOULD AND WHO SHOULDN'T BE GRANTED ENTRY INTO THE US FROM AN EVERGROWING CRUSH OF APPLICANTS CURRENTLY ABOUT 700000 PEOPLE INCLUDING CHILDREN ARE IN THE US SEEKING POLITICAL ASYLUM A TOTAL THAT EQUALS THE POPULATION OF SOUTH DAKOTA OF THESE ALL BUT ABOUT 11000 ARE APPLICANTS AND THEIR FAMILIES WHO ENTERED THE US LEGALLY OFTEN ON TEMPORARY VISAS THE OTHERS INCLUDE BOAT PEOPLE AND THOSE WHO APPLY AT AIRPORTS AND OTHER POINTS OF ENTRY AS MR SINGH DID THE INS HAS BEEN OVERWHELMED JUSTICE DEPARTMENT FIGURES SHOW THAT ABOUT 5100 PEOPLE WERE GRANTED ASYLUM IN THE PAST FISCAL YEAR BUT WITH 10000 NEW CASES EACH MONTH THE BACKLOG IS CLIMBING THE CHANGES ANNOUNCED YESTERDAY ARE DESIGNED TO INCREASE BOTH THE FUNDING AND PERSONNEL FOR ASYLUM CASES IMMIGRATION COMMISSIONER DORIS MEISSNER SAID NEW PROPOSED REGULATIONS WOULD FOR THE FIRST TIME IMPOSE A 130 FEE ON ASYLUM APPLICANTS ALLOW ASYLUM OFFICERS TO ELIMINATE HEARINGS AT THE OFFICER LEVEL AND IMMEDIATELY REFER DISALLOWED REQUESTS TO AN IMMIGRATION JUDGE WHOSE RULINGS COULD BE APPEALED TO THE BOARD OF IMMIGRATION APPEALS BIA AND DENY ASYLUM SEEKERS PERMISSION TO WORK FOR AT LEAST FIVE MONTHS AFTER FILING AN ASYLUM APPLICATION THE PLAN ALSO WOULD DOUBLE TO MORE THAN 300 THE NUMBER OF INS AGENTS WHO INTERVIEW ASYLUM APPLICANTS THE CHANGES FOLLOW MS MEISSNER'S ANNOUNCEMENT LAST MONTH THAT THE AGENCY IS BEING REORGANIZED IN A MESSAGE SENT TO THE AGENCY'S STAFF SHE SAID THAT THE REORGANIZATION PLAN RESPONDS TO THE WIDELY HELD VIEW WITHIN INS AND BY OUR STAKEHOLDERS THAT THE AGENCY IS NOT WORKING WELL AS PRESENTLY STRUCTURED ALTHOUGH IMMIGRATION SPECIALISTS GENERALLY WELCOME THE AGENCY'S REORGANIZATION SOME ARE CRITICAL OF NEW RULES SUCH AS THE 130 FEE WHICH WOULD MAKE THE US THE ONLY NATION TO CHARGE THOSE FLEEING POLITICAL PERSECUTION FOR THE RIGHT TO SEEK POLITICAL ASYLUM SOME OF THE MEASURES ARE EXTREME AND COULD RESULT IN THE DENIAL OF ACCESS TO GENUINE REFUGEES TO THE ASYLUM PROCEDURES COMPLAINS ARTHUR HELTON DIRECTOR OF MIGRATION PROGRAMS FOR THE OPEN SOCIETY INSTITUTE IN NEW YORK INS OFFICIALS CONCEDE THAT EVEN WITH THE NEW CHANGES THOSE WHO ENTER THE US WITHOUT VISAS AND SEEK ASYLUM MAY CONTINUE TO FACE LONG PERIODS OF CONFINEMENT EVEN IF THEY HAVE APPARENTLY VALID CLAIMS TO GAIN ASYLUM SUCH APPLICANTS MUST DEMONSTRATE A WELLFOUNDED FEAR OF PERSECUTION BASED ON RACE RELIGION NATIONALITY POLITICAL OPINION OR MEMBERSHIP IN A PARTICULAR SOCIAL GROUP SAYS INS SPOKESMAN VERN JERVIS THE LAW SAYS THEY SHALL BE DETAINED UNTIL STATUS HAS BEEN DETERMINED HE SAYS ADDING THAT THE APPLICANT CAN LEAVE WHENEVER HE WANTS TO AND GO HOME BUT MANY LIKE MR SINGH SAY THEY CAN'T JUST LEAVE AND GO HOME AT LEAST NOT SAFELY THE 40YEAROLD FARMER SAYS THAT IN HIS VILLAGE OF DHAREN KOT IN THE PUNJAB REGION OF INDIA HE WAS A LOCAL LEADER OF A POLITICAL PARTY THAT FREQUENTLY IS AT ODDS WITH INDIA'S GOVERNMENT HE TELLS OF REPEATED BEATINGS WITH LEATHER STRAPS AND WOODEN RODS BY POLICE BECAUSE OF HIS RELIGIOUS AND POLITICAL AFFILIATIONS MR SINGH RECALLS SPEAKING AT A JANUARY 1991 RELIGIOUS CEREMONY WHEN HE SAYS POLICE BEGAN BEATING THE CROWD WITH CLUBS HE WAS HAULED TO JAIL WHERE THEY KICKED ME WITH THEIR BOOTS THEY FORCED ME TO DISROBE AND I WAS BEATEN WITH LEATHER STRAPS THE STRAPS HE ESTIMATES WERE ABOUT 18 INCHES LONG AND NINE INCHES WIDE WITH A HANDLE THREE MONTHS LATER HE WAS ARRESTED AND BEATEN AGAIN HE REMEMBERS IT WAS UNBEARABLE PAIN THEN I FELL UNCONSCIOUS LATER HE SAYS AFTER THE POLICE TRIED TO KILL HIM HE ESCAPED AND POLITICAL ASSOCIATES ARRANGED BOGUS TRAVEL DOCUMENTS FOR HIM TO FLEE THE COUNTRY WHEN I HAD LEFT MY COUNTRY I THOUGHT EVERY PERSON WHO HAD BEEN TREATED BADLY BY HIS OR HER GOVERNMENT AND THERE WERE HUMAN RIGHTS PROBLEMS AMERICA WILL HELP THEM AND GRANT THEM ASYLUM WHERE WE LIVE OUR LIVES FREELY AND SAFELY MR SINGH SAYS BUT WHEN HE ARRIVED HE FOUND INSTEAD MOUNTAINS OF RED TAPE AND LEGAL OBSTACLES DURING TWO YEARS OF DETENTION MR SINGH SAYS DEPRESSION LED TO A YEAR OF ILLNESS I'M VERY SAD HERE HE TOLD A VISITOR AT ONE POINT NOW I THINK I WILL DIE MR SINGH HAD TO RUN A GAUNTLET OF LEGAL STEPS AN IMMIGRATION JUDGE BELIEVED HIS STORY SAYING HE TESTIFIED IN AN HONEST AND FORTHRIGHT MANNER BUT IN APRIL 1992 REJECTED THE ARGUMENT THAT MR SINGH HAS A LEGITIMATE ASYLUM CLAIM BECAUSE OF POLITICAL OPPRESSION IN INDIA HE NEXT TOOK HIS CASE TO THE BOARD OF IMMIGRATION APPEALS IN FEBRUARY OF LAST YEAR THE BOARD ALSO DENIED HIS ASYLUM PETITION AND HIS REQUEST TO AVOID DEPORTATION BUT UNLIKE SOME REFUGEES MR SINGH HAD RETAINED A LAWYER ROBERT JOBE WHO IS BASED IN SAN FRANCISCO MR JOBE APPEALED THE BIA RULING TO THE FEDERAL COURT IN LOS ANGELES HE AND OTHER ADVOCATES FOR ASYLUM SEEKERS CHARGE THE APPEALS BOARD WITH MAKING MASS JUDGMENTS TO EXCLUDE GROUPS OF PEOPLE IN THE EARLY '80S THEY USED THEIR INCOMPETENCE TO DENY ASYLUM TO SALVADORANS THEN SRI LANKANS AND NOW INDIAN SIKHS MR JOBE CONTENDS JUSTICE DEPARTMENT OFFICIALS INSIST THAT ALL DECISIONS ARE BASED ON INDIVIDUAL MERIT STILL INDIAN SIKHS HAVE FARED POORLY BEFORE THE BOARD A DECEMBER 1992 POLICY RULING ADOPTED BY THE BOARD LISTS SITUATIONS THAT ARE COMMON TO MANY SIKHS SEEKING ASYLUM BUT DO NOT IN THE BOARD'S JUDGMENT MEAN SIKHS SHOULD BE ALLOWED TO REMAIN IN THE US OR GRANTED ASYLUM LAST NOVEMBER THE FEDERAL COURT OVERTURNED THE BIA'S RULING AGAINST MR SINGH FLATLY STATING THAT THE BIA'S DECISION IS WRONG AS A MATTER OF LAW AND MUST BE REVERSED THE EVIDENCE FULLY SUPPORTS A CONCLUSION OF PAST PERSECUTION DUE TO MR SINGH'S POLITICAL OPINIONS HE WAS RELEASED JAN 29 MR SINGH IS NOW A TRAINEE AT A SEATTLE DOUGHNUT SHOP HE SAYS HE STILL LONGS FOR HIS HOME BACK IN INDIA SINCE HE FLED HE HASN'T SEEN HIS EIGHTYEAROLD DAUGHTER AND A THREEYEAROLD SON AS SOON AS CONDITIONS ARE ALL RIGHT IN MY COUNTRY HE SAYS I WILL TRY TO GO BACK