VIACOM INC AGREED TO SELL ITS ONETHIRD STAKE IN LIFETIME CABLE NETWORK FOR 3176 MILLION TO PARTNERS HEARST CORP AND CAPITAL CITIES/ABC INC AND IS SEPARATELY DISCUSSING A POSSIBLE BUSINESS COMBINATION INVOLVING VIACOM CABLE SYSTEMS AND TELECOMMUNICATIONS INC ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION VIACOM WHICH RECENTLY ACQUIRED PARAMOUNT COMMUNICATIONS INC FOR 96 BILLION IS DISCUSSING A CABLE SYSTEMS DEAL WITH TCI AS PART OF SETTLEMENT TALKS IN THE 25 BILLION ANTITRUST SUIT VIACOM FILED AGAINST TCI DURING THE TAKEOVER BATTLE FOR PARAMOUNT THOSE SETTLEMENT TALKS ARE EXPECTED TO INCLUDE NEW LONGTERM AGREEMENTS BY TCI TO CARRY VIACOM CABLE NETWORKS LIKE MTV AND SHOWTIME YESTERDAY WALL STREET TRADERS AND CABLE INDUSTRY BROKERS SPECULATED THAT TCI MIGHT BUY VIACOM CABLE SYSTEMS SERVING 11 MILLION SUBSCRIBERS FOR 22 BILLION OR ABOUT 12 TIMES CASH FLOW BUT A PERSON CLOSE TO TCI SAID THE PROBABILITY OF TCI BUYING AT THAT PRICE IS REMOTE AND SAID A MORE LIKELY SCENARIO IS SOME KIND OF JOINT VENTURE BETWEEN VIACOM AND TCI THAT WOULD BE HELPFUL TO VIACOM IF THE TWO SIDES COULD AGREE ON VALUES HE ADDED THAT THE TWO SIDES ARE FAR FROM A DEAL VIACOM DECLINED COMMENT ON THE REPORTS OF THE TALKS WITH TCI A DEAL WITH TCI COULD HELP VIACOM EASE THE 7 BILLION IN COMBINED DEBT IT TOOK ON WITH THE PARAMOUNT MERGER VIACOM IS ALSO ATTEMPTING TO COMPLETE A SEPARATE MERGER WITH BLOCKBUSTER ENTERTAINMENT CORP BUT BLOCKBUSTER HAS INDICATED THAT THE STEEP DROP IN VIACOM'S STOCK PRICE THAT HAS FOLLOWED THE PARAMOUNT MERGER COULD JEOPARDIZE THAT DEAL VIACOM CLASS B SHARES CLOSED YESTERDAY UNCHANGED AT 2775 ON THE AMERICAN STOCK EXCHANGE IF VIACOM DOES A CABLE DEAL WITH TCI THAT HELPS EASE OR RESTRUCTURE ITS DEBT FROM THE PARAMOUNT MERGER IT COULD HELP BOOST VIACOM'S STOCK PRICE AND THUS HELP IN COMPLETION OF THE BLOCKBUSTER MERGER ANALYSTS NOTED AND EVEN IF THE BLOCKBUSTER DEAL DOESN'T GO THROUGH A VIACOMTCI CABLE DEAL COULD STILL HELP VIACOM IMPROVE ITS BALANCE SHEET ONE INDUSTRY EXECUTIVE FAMILIAR WITH THE TALKS SAID THAT UNDER ONE PLAN BEING DISCUSSED VIACOM AND TCI WOULD FORM A JOINT VENTURE IN WHICH THEY WOULD COMBINE VIRTUALLY ALL OF VIACOM'S CABLE SYSTEMS IN SEATTLE SAN FRANCISCO AND NASHVILLE TENN WITH TCI SYSTEMS IN THE SAME AREAS SUCH A VENTURE WOULD GIVE THE COMBINED ENTITY A LOCK ON THE MARKETS IN THOSE METROPOLITAN AREAS REACHING 75 OF THE SAN FRANCISCO MARKET 90 OF THE SEATTLE MARKET AND ABOUT 50 OF THE NASHVILLE MARKET VIACOM COULD SHIFT SOME OF ITS DEBT TO THE JOINT VENTURE THE JOINT VENTURE COULD ALSO ISSUE NEW DEBT VIACOM'S SALE OF THE LIFETIME INTEREST TO ITS LONGTIME PARTNERS CAPITAL CITIES AND HEARST FITS WITH VIACOM'S STATED STRATEGY TO SEEK TO SELL ASSETS IN WHICH IT HAS ONLY A PARTIAL OWNERSHIP VIACOM IS ALSO GRAPPLING WITH THE ISSUE OF HOW TO RESOLVE THE FUTURE OWNERSHIP OF USA NETWORK WHICH IT JOINTLY OWNS WITH MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC UNIT ANALYSTS ESTIMATE USA'S VALUE AT ABOUT 1 BILLION AND THE COMPLEX PARTNERSHIP AGREEMENT INCLUDES A PROVISION THAT COULD COMPEL ONE PARTNER TO SELL ITS INTEREST OR BUY OUT ITS PARTNER IN THE EVENT OF A CHANGE IN CONTROL OF THE OTHER THE USA PARTNERSHIP AGREEMENT SPECIFIES THAT PARAMOUNT CAN'T DO ANYTHING NEW IN THE ADVERTISERSUPPORTED CABLE ENTERTAINMENT NETWORK BUSINESS UNLESS IT PARTNERS WITH MCA VIACOM'S MAIN BUSINESS IS CABLE NETWORKS SUCH AS MTV AND MCA'S POSITION IS THAT THE ACQUISITION OF PARAMOUNT BY VIACOM PUTS PARAMOUNT IN BREACH OF THE USA AGREEMENT VIACOM HAS ARGUED TO MCA THAT THE TWO SIDES CAN CONTINUE TO WORK TOGETHER ON FUTURE PROJECTS SIDNEY J SHEINBERG MCA PRESIDENT SAID THERE ARE CURRENTLY NO DISCUSSIONS ON THE MATTER BUT MCA IS CLEARLY CONCERNED THAT VIACOM'S CABLE NETWORKS COMPETE DIRECTLY WITH USA NETWORK FOR ADVERTISERS AND VIEWERS IF VIACOM DECIDES IT WANTS TO SELL ITS 50 INTEREST TO MCA MCA MIGHT BE INTERESTED IN BUYING BUT IT WILL LIKELY WANT A BARGAIN PRICE MEANWHILE UNDER THE AGREEMENT TO BUY VIACOM'S LIFETIME INTEREST CAPITAL CITIES/ABC AND HEARST WOULD INCREASE THEIR STAKE IN LIFETIME TO 50 EACH UP FROM ONETHIRD EACH THE DEAL VALUES LIFETIME A CABLE CHANNEL AIMED AT WOMEN THAT REACHES SOME 58 MILLION SUBSCRIBERS AT ABOUT 1 BILLION THE NETWORK WAS FORMED IN 1984 WHEN VIACOM MERGED ITS CABLE HEALTH NETWORK WITH HEARST'S AND CAPITAL CITIES' DAYTIME WOMEN'S CHANNEL VIACOM SAID IN A STATEMENT THAT IT DETERMINED THAT A MINORITY INTEREST IN THE NETWORK DOES NOT FIT INTO OUR STRATEGIC OBJECTIVES WE ARE PLEASED THAT WE WERE ABLE TO SELL THIS NONSTRATEGIC HOLDING AT AN ATTRACTIVE PRICE WHILE LEAVING LIFETIME IN STRONG HANDS 9403300082 940330 TECHNOLOGY SMITHKLINE DISCOUNTS PRICE OF CHEMOTHERAPY DRUG NEW YORK IN ANOTHER SIGN OF EMERGING DRUGINDUSTRY PRICE WARS SMITHKLINE BEECHAM INC PRICED ITS NEW CHEMOTHERAPY PRODUCT AT A HEALTHY DISCOUNT COMPARED WITH A COMPETITOR'S NAUSEA TREATMENT SMITHKLINE WILL BILL US WHOLESALERS 72 LESS FOR KYTRIL THAN GLAXO HOLDINGS PLC CHARGES FOR ITS COMPETING DRUG ZOFRAN ACCORDING TO SMITHKLINE SPOKESMAN RICHARD KOENIG THE KYTRIL PRICING PROVIDES THE SECOND INDICATION IN LESS THAN A WEEK THAT THE PHARMACEUTICAL INDUSTRY IS FINALLY SUCCUMBING TO COMPETITIVE PRESSURES JUST LAST WEEK SANDOZ AG SAID IT WOULD SELL ITS CHOLESTEROLLOWERING DRUG LESCOL AT A 50 DISCOUNT TO ITS COMPETITORS HISTORICALLY DRUG COMPANIES HAVE PRICED NEW DRUGS AT A PREMIUM TO EXISTING PRODUCTS USING THE JUSTIFICATION THAT THEY ARE EITHER SAFER OR MORE EFFECTIVE NOW THE NATION'S NEWFOUND SENSITIVITY TOWARD HEALTHCARE SPENDING IS CAUSING THE LANDSCAPE TO SHIFT WHETHER KYTRIL'S COMPETITIVE PRICE WILL ALLOW SMITHKLINE TO CUT INTO THE ESTIMATED 400 MILLIONAYEAR MARKET FOR ZOFRAN REMAINS TO BE SEEN 9403300081 940330 GM WILL TAKE BENEFITS CHARGE OF 758 MILLION NORTH AMERICAN LINES SEEN PROFITABLE THIS YEAR PLANT MAY STAY OPEN BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP WILL TAKE A 758 MILLION CHARGE FOR THE FIRST QUARTER TO REFLECT THE COST OF DISABILITY AND CERTAIN OTHER EMPLOYEE BENEFITS BUT THE AUTO MAKER REPEATED ITS NO EXCUSES PLEDGE TO SHOW A PROFIT IN NORTH AMERICAN OPERATIONS THIS YEAR THE 105PERCOMMONSHARE CHARGE WON'T CUT INTO GM'S CASH FLOW BUT IT DOES REPRESENT THE COSTS GM COULD BEAR LARGELY BECAUSE OF ITS GENEROUS DISABILITYBENEFITS PROGRAM A GM SPOKESMAN DECLINED TO SAY HOW THE CHARGE WILL AFFECT FIRSTQUARTER RESULTS HOWEVER MOST ANALYSTS EXPECT GM WILL EARN ENOUGH FROM OPERATIONS IN THE JANUARYTOMARCH PERIOD TO MORE THAN OFFSET THE CHARGE GM SAID 30 MILLION OF THE TOTAL CHARGE WOULD BE ALLOCATED TO ITS GM HUGHES ELECTRONICS CORP UNIT AND REDUCE FIRSTQUARTER NET INCOME ATTRIBUTED TO GM CLASS H STOCK BY EIGHT CENTS A SHARE SEPARATELY GM YESTERDAY TOLD WORKERS AT ITS WILMINGTON DEL CARASSEMBLY PLANT THAT THE COMPANY WILL STUDY USING THE FACTORY TO BUILD A NEW SMALL VEHICLE INSTEAD OF CLOSING IT IN 1996 AS ORIGINALLY PLANNED A DECISION COULD COME BY NOVEMBER GM AND THE UNITED AUTO WORKERS UNION SAID IN A JOINT STATEMENT GM'S DECISION TO CONSIDER SAVING THE WILMINGTON PLANT WHICH EMPLOYS 2800 WORKERS IS ANOTHER SIGN OF DETROIT'S BULLISHNESS ABOUT THE OUTLOOK FOR DOMESTIC VEHICLE SALES AND EXPORTS GM HAD SAID IT WOULD CLOSE THE WILMINGTON PLANT IN LATE 1992 AS PART OF A BROADER PLAN TO CLOSE 23 FACTORIES AND CUT NORTH AMERICAN ASSEMBLY CAPACITY BY ABOUT 25 NOW HOWEVER WITH US SALES REBOUNDING AND JAPANESE AUTO MAKERS HOBBLED BY A STRONG YEN GM FORD MOTOR CO AND CHRYSLER CORP ARE MOVING TO EXPAND CAPACITY AND PRESERVE JOBS THE ANNOUNCEMENT ALSO REPRESENTS AN OLIVE BRANCH FROM GM PRESIDENT JOHN F SMITH JR TO UAW VICE PRESIDENT STEPHEN P YOKICH WHO IN RECENT WEEKS HAS SANCTIONED A SERIES OF STRIKES OR STRIKE THREATS AT KEY GM PLANTS TO PROTEST MANAGEMENT EFFORTS TO CUT JOBS AND BOOST PRODUCTIVITY MR YOKICH ACCOMPANIED GM VICE PRESIDENT THOMAS DAVIS HEAD OF GM'S LANSING AUTOMOTIVE DIVISION IN ANNOUNCING THE PLAN TO WILMINGTON WORKERS A GM SPOKESMAN WOULDN'T SAY WHAT KIND OF VEHICLE IS UNDER CONSIDERATION BUT SAID IT ISN'T ONE NOW PRODUCED BY GM HOWEVER THE CHARGE HIGHLIGHTS THE RISKS GM IS TAKING IF IT HANGS ON TO MORE UAW JOBS THAN IT CAN SUPPORT WITH ITS SHRUNKEN US MARKET SHARE FOR 1992 GM TOOK A 208 BILLION NONCASH CHARGE TO REFLECT THE PROJECTED COST OF ITS RETIREE MEDICAL BENEFITS THAT CHARGE AND A TOTAL OF MORE THAN 10 BILLION IN LOSSES FROM 1990 TO 1992 HAVE REDUCED GM'S SHAREHOLDER EQUITY TO 56 BILLION FROM 2733 BILLION IN 1991 GM'S CHIEF FINANCIAL OFFICER G RICHARD WAGONER SAID IN A STATEMENT THAT GM STILL INTENDS TO SHOW A PROFIT FROM NORTH AMERICAN OPERATIONS NO EXCEPTIONS NO EXCUSES MR WAGONER WILL GET HELP KEEPING HIS PROMISE FROM A BOOMING USVEHICLE MARKET AFTER A STRONG FIRST QUARTER GM IS LIKELY TO ADD EVEN MORE PRODUCTION TO SECONDQUARTER SCHEDULES THE PLANNED CHARGE WAS ANNOUNCED AFTER THE CLOSE OF THE STOCK MARKET GM COMMON STOCK FELL 1375 OR 24 TO CLOSE AT 56 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9403300080 940330 WHO'S NEWS BLOCKBUSTER'S CHIEF REALIZES 15 MILLION FROM ITS STOCK OPTIONS FORT LAUDERDALE FLA H WAYNE HUIZENGA CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BLOCKBUSTER ENTERTAINMENT CORP REALIZED 15 MILLION DURING 1993 BY EXERCISING OPTIONS TO ACQUIRE THE COMPANY'S STOCK THE OPTIONS EXERCISED CAME ON TOP OF THE 56YEAROLD EXECUTIVE'S SALARY AND BONUS OF 556731 FOR 1993 WHICH WAS UP ABOUT 7 FROM 521154 THE PREVIOUS YEAR ACCORDING TO A PRELIMINARY PROXY STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION MR HUIZENGA WHOSE HOLDINGS INCLUDE INTERESTS IN THREE MAJORLEAGUE SPORTS TEAMS GENERALLY RECEIVES A SALARY AT THE LOW END OF THE RANGE PAID TO EXECUTIVES WITH SIMILAR EXPERIENCE AND QUALIFICATIONS THE COMPANY SAID IN ITS PROXY STOCK OPTIONS THE COMPANY SAID ARE THE PREDOMINATE PORTION OF BLOCKBUSTER'S EXECUTIVE PAY PACKAGES DURING 1993 MR HUIZENGA RECEIVED OPTIONS TO BUY 385715 SHARES HE EXERCISED 591141 OPTIONS THAT YEAR WITH A VALUE REALIZED OF 15 MILLION BLOCKBUSTER A VIDEO AND MUSIC RETAILER REPORTED NET INCOME OF 2436 MILLION OR 110 A SHARE IN 1993 UP FROM 1482 MILLION OR 76 CENTS A SHARE THE PREVIOUS YEAR THE COMPANY EARLIER THIS YEAR ANNOUNCED THAT IT WOULD MERGE WITH VIACOM INC 9403300079 940330 CRACKS APPEAR IN GRANITE PARTNERS FUND BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL TO SOPHISTICATED INSTITUTIONS AND WEALTHY INDIVIDUALS WHO GAVE HIM MORE THAN HALF A BILLION DOLLARS TO MANAGE DAVID ASKIN SEEMED TO OFFER A FINANCIAL EQUIVALENT OF ELDORADO SKYHIGH RETURNS WITH PRACTICALLY NO RISK BY MIXING RARE AND VOLATILE MORTGAGEBACKED SECURITIES UNDER A MARKET NEUTRAL STRATEGY MR ASKIN PLEDGED TO DELIVER RETURNS TOPPING 15 A YEAR THE STRATEGY RELIED HEAVILY ON BORROWED MONEY TO JUICE UP RETURNS BUT DESPITE SUCH RISKS MR ASKIN ASSURED HIS INVESTORS THAT NO MATTER WHAT DIRECTION INTEREST RATES WENT HIS PORTFOLIOS WOULDN'T LOSE VALUE NOW THAT INVESTMENT ALCHEMY WHICH GENERATED DECEPTIVELY STEADY RETURNS OF ROUGHLY 13 TO 18 SINCE 1990 IS BLOWING UP IN JUST THE PAST SIX WEEKS THREE HEDGE FUNDS RUN BY MR ASKIN HAVE SUSTAINED HUGE LOSSES OF 35 WIPING OUT 165 MILLION OF INVESTORS' 470 MILLION OF CAPITAL ANOTHER ROUGHLY 125 MILLION OF PRIVATELY RUN ACCOUNTS WERE SIMILARLY HIT MR ASKIN'S INVESTORS SAY ONE INVESTOR SAYS HE THINKS LOSSES WILL APPROACH 50 BEFORE THE PORTFOLIO IS FULLY LIQUIDATED IT'S UNBELIEVABLE SAYS CHRIS BROWN OF GLENWOOD FINANCIAL GROUP A CHICAGOBASED MONEY MANAGER THAT HAD 4 MILLION INVESTED WITH MR ASKIN THIS WAS TOUTED AS A LOWRISK LOWVOLATILITY MARKETNEUTRAL INVESTMENT WE WERE CLEARLY MISLED IN THE FACE OF SUCH LOSSES MR ASKIN MAY HAVE LITTLE CHOICE BUT TO LIQUIDATE THE FUNDS OR TURN OVER THE PORTFOLIOS TO ANOTHER INVESTMENT MANAGER CURRENTLY MR ASKIN'S INVESTORS ARE DELIBERATING ABOUT WHAT TO DO MEANWHILE THOSE INVESTORS ARE RAISING QUESTIONS ABOUT THE METHODS MR ASKIN USED TO VALUE THE SECURITIES IN THE FUNDS WHICH CAUSED THE PORTFOLIO'S LOSSES TO BE VASTLY UNDERSTATED IN RECENT MONTHS I THINK THERE MAY BE CHICANERY HERE CONTENDS FRANK MYER GLENWOOD'S PRESIDENT MR ASKIN HOTLY DENIES THAT HE DID ANYTHING WRONG CLEARLY THERE WERE MISTAKES IN JUDGEMENT HE SAYS BUT ALL THE INFORMATION WAS FULLY DISCLOSED OTHER MANAGERS OF HEDGE FUNDS WHICH ARE PRIVATE PARTNERSHIPS WITH BROAD INVESTMENT LEEWAY WORRY THAT FEDERAL REGULATORS WILL VIEW MR ASKIN'S PROBLEMS AS ANOTHER REASON TO SCRUTINIZE SUCH FUNDS THE FEDERAL RESERVE AND THE SECURITIES AND EXCHANGE COMMISSION RECENTLY SAID THEY WANT TO TIGHTEN DISCLOSURE STANDARDS FOR HEDGE FUNDS IT ISN'T A HAPPY MOMENT FOR HEDGE FUNDS SAYS ONE MANAGER MR ASKIN'S INVESTORS GOT THEIR INITIAL WHIFF OF BAD NEWS LATE FRIDAY WHEN THEY RECEIVED A LETTER FROM HIM BY FACSIMILE DUE TO TURBULENT CONDITIONS HE WROTE THERE HAS BEEN A SIGNIFICANT REDUCTION IN THE VALUATION OF SECURITIES IN OUR PORTFOLIOS MR ASKIN DISCLOSED THAT GRANITE PARTNERS A 170 MILLION PORTFOLIO THAT HE HAD TOLD INVESTORS WAS DOWN 15 IN FEBRUARY ACTUALLY WAS DOWN 2189 THAT MONTH HE ALSO DISCLOSED THAT WALL STREET SECURITIES FIRMS HAD PUT PRESSURE ON US TO MEET MARGIN REQUIREMENTS AND THAT AS LONG AS THE MARKETS REMAIN UNSTABLE WE MAY BE SUBJECT TO FURTHER MARGIN CALLS WALL STREET FIRMS REQUIRE CUSTOMERS WHO BUY SECURITIES WITH BORROWED FUNDS TO PUT UP MARGIN DEPOSITS AS COLLATERAL AGAINST POTENTIAL LOSSES WHEN LOSSES MOUNT THE FIRMS ASK FOR MORE MONEY AN EVENT KNOWN AS A MARGIN CALL WHAT COULD ACCOUNT FOR SUCH A LARGE DISCREPANCY IN REPORTED RETURNS THE PRELIMINARY VALUATION OF THE PORTFOLIO MR ASKIN'S LETTER EXPLAINED RELIED TO A SIGNIFICANT DEGREE ON THE USE OF MANAGER MARKS IN OTHER WORDS MR ASKIN USED HIS OWN ESTIMATES TO PRICE THE MERCURIAL SECURITIES IN HIS PORTFOLIO RATHER THAN RELY ON PRICES FROM WALL STREET DEALERS OUR DOCUMENTS ALLOW US TO USE MANAGER MARKS MR ASKIN SAYS IT'S SOMETHING OUR INVESTORS KNEW ABOUT HE ADDED THAT AFTER RATES ROSE IN FEBRUARY IT BECAME EXTREMELY DIFFICULT TO GET GOOD PRICE QUOTES FROM WALL STREET DEALERS BECAUSE OF THEIR RELUCTANCE TO MAKE MARKETS IN SUCH VOLATILE SECURITIES AT THAT TIME PRICING IS OFTEN A PROBLEM FOR THE UNUSUAL KINDS OF MORTGAGEBACKED SECURITIES THAT MR ASKIN STUFFED IN HIS FUNDS USING BORROWED MONEY HE EVENTUALLY ASSEMBLED A 15 BILLION OF ESOTERICA SUCH AS INTERESTONLY STRIPS WHICH WERE TO PROFIT FROM RISING INTEREST RATES AND DISCOUNT PRINCIPALONLY STRIPS WHICH WERE TO PROFIT FROM FALLING RATES AS WELL AS INVERSE IOS AND SUPER POS WHICH ARE EVEN QUIRKIER AND TOUGHER TO VALUE YOU HAD A PORTFOLIO THAT WAS SUPPOSED TO BE MARKETNEUTRAL MADE UP OF ILLIQUID SECURITIES WITH LEVERAGE ON TOP SAYS MARY ANN JOHNSON OF JOHNSON CUSTOM STRATEGIES A GREENWICH CONN INVESTMENT STRATEGIST WHO WARNED HER CLIENTS TO SHUN MR ASKIN THERE WAS SO MUCH RISK IN THE UNDERLYING SECURITIES THAT IF ANYTHING WENT WRONG YOU COULDN'T GET OUT MS JOHNSON ADDS THE SECURITIES WERE SUPPOSED TO ACT IN OPPOSITE WAYS WITH ANY CHANGE IN INTEREST RATES ONLY THINGS DIDN'T TURN OUT THAT WAY WHEN RATES STARTED RISING EARLIER THIS YEAR THE RESULTING MISMATCH CAUSED HUGE UNEXPECTED LOSSES IN THE FUNDS AND WHEN MR ASKIN SOUGHT TO SELL SECURITIES TO CUT HIS LOSSES HE FOUND HE COULDN'T GET PRICES HE THOUGHT WERE FAIR INSTEAD HE HELD ONTO THE SECURITIES AND PRICED THEM USING HIS OWN ESTIMATES WHICH WERE LIBERAL SAYS ONE INVESTOR UNTIL THINGS BEGAN COMING APART MR ASKIN HAD BEEN ONE OF THE MOST RESPECTED AND RECOMMENDED OF THE HEDGE FUND MANAGERS INVESTING IN VOLATILE MORTGAGEBACKED SECURITIES A VETERAN OF DREXEL BURNHAM LAMBERT WHERE HE HAD BEEN THE HEAD OF FIXEDINCOME RESEARCH MR ASKIN HELPED DEVELOP A MODEL WIDELY USED BY THE SECURITIES INDUSTRY TO ADJUST THE VALUE OF MORTGAGEBACKED SECURITIES FOR PREPAYMENT RISK MORTGAGE PREPAYMENTS SUCH AS HOMEOWNER REFINANCINGS CAUSE THE INCOME FROM MORTGAGEBACKED SECURITIES TO VARY WIDELY AND THAT IN TURN CAN MAKE THEM VERY DIFFICULT TO VALUE MR ASKIN'S INVESTORS WEREN'T NAIFS EITHER THEY INCLUDED SUCH PROMINENT INSTITUTIONAL MONEY MANAGERS AS COLLINS ASSOCIATES EVALUATION ASSOCIATES INC AND GROSVENOR MULTISTRATEGY FUND MR ASKIN ALSO RAISED MONEY FROM SEVERAL BANKS AND INSURANCE COMPANIES ACCORDING TO HIS INVESTORS THESE DISHEARTENED INVESTORS CONVENED MONDAY AT 330 PM FOR A MEETING THAT PROVED TO BE CONTENTIOUS AND THAT LASTED MORE THAN TWO HOURS INVESTORS CROWDED INTO MR ASKIN'S COMPUTERPACKED PARK AVENUE OFFICES AND TELEPHONED IN FROM FOUR CONTINENTS THE PORTFOLIOS MR ASKIN TOLD THEM WERE UNRAVELING FAST HE FACED MARGIN CALLS FROM BEAR STEARNS & CO AND OTHER WALL STREET FIRMS THAT BARRING HUGE SALES OF SECURITIES AT FIRESALE PRICES WOULD LEAVE THE HEDGE FUNDS 42 MILLION SHORT OF THE CASH NEEDED TO MEET ITS OBLIGATIONS HE ASKED THE INVESTORS TO PUT UP MORE CAPITAL THEY REFUSED VERY QUICKLY SAYS ONE MANAGER WHO PARTICIPATED THE INVESTORS DECIDED TO SEEK AN OUTSIDE APPRAISAL OF THE PORTFOLIO THE INVESTORS DECIDED TO SEND PORTIONS OF THE PORTFOLIO TO OTHER MANAGERS IT WAS LIKE OWNING THE BOND MARKET LEVERAGED A LOT SAYS JEFFREY GRUNDLACH A PORTFOLIO MANAGER AT TRUST CO OF THE WEST WHO LOOKED AT MR ASKIN'S BOND PORTFOLIO IT ISN'T A GOOD IDEA TO LEVERAGE UP VOLATILE SECURITIES WHEN DEALERS CAN MARK DOWN SECURITIES AND FORCE MARGIN CALLS ANY TIME THEY WANT HE ADDS 9403300078 940330 WHO'S NEWS JOHN ALDEN FINANCIAL CORP JOHN ALDEN FINANCIAL CORP MIAMI SCOTT L STANTON 38 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF FINANCE AND CORPORATE SERVICES OF THIS INSURANCE HOLDING COMPANY HE SUCCEEDS J CALVIN WINTER 45 WHO RESIGNED FOR PERSONAL REASONS 9403300077 940330 INTERNATIONAL JAPAN'S TRADE PLAN GETS COOL RECEPTION FROM THE US AND FINANCIAL MARKETS BY WALL STREET JOURNAL STAFF REPORTERS BOB DAVIS IN WASHINGTON AND DAVID P HAMILTON AND QUENTIN HARDY IN TOKYO THE US REJECTED JAPAN'S LATEST PACKAGE OF MARKETOPENING MEASURES AS LACKING IN SUBSTANCE AND PREPARED TO INTENSIFY ITS TRADE BATTLE WITH TOKYO ANTICIPATING THAT REACTION TOKYO'S NIKKEI 225STOCK INDEX SANK 12 YESTERDAY THE INDEX FELL ANOTHER 15 ON WEDNESDAY CLOSING THE MORNING SESSION AT 1941448 MEANWHILE THE DOLLAR FELL TO 10275 YEN A DECLINE OF MORE THAN TWO YEN IN TWO DAYS A STRONGER YEN IS BAD FOR JAPAN'S EXPORTDEPENDENT ECONOMY BECAUSE IT MAKES JAPAN'S GOODS MORE EXPENSIVE OVERSEAS US TRADE NEGOTIATORS HAVEN'T MADE A STRONGER YEN AN EXPLICIT PART OF THEIR STRATEGY BUT MANY CURRENCY TRADERS ARE ACTING AS IF A STRONGER YEN IS US POLICY THAT TENDS TO STRENGTHEN THE YEN AND PUT ADDITIONAL PRESSURE ON TOKYO TO MAKE MORE CONCESSIONS US TRADE REPRESENTATIVE MICKEY KANTOR IN THE CLINTON ADMINISTRATION'S FIRST PUBLIC RESPONSE TO THE JAPANESE PLAN SAID IT LACKED THE CONCRETE STEPS THAT THE US HAD SOUGHT BEFORE REOPENING TRADE NEGOTIATIONS THE US EXPECTS JAPAN TO PRODUCE A BROADER PLAN TO INCREASE IMPORTS THAT INCLUDES FIRMER COMMITMENTS SAID MR KANTOR CALLING JAPAN'S PROPOSAL A WORK IN PROGRESS TOMORROW THE US INTENDS TO RATCHET UP PRESSURE ON JAPAN FURTHER THE US TRADE REPRESENTATIVE'S OFFICE WILL RELEASE A THICK BOOK OF TRADE BARRIERS WORLDWIDE INCLUDING A 50PAGE SECTION ON JAPAN THAT IS TWICE AS LONG AS LAST YEAR'S THE US ALSO WILL DECIDE BY APRIL 30 WHETHER TO BRING TRADE ACTIONS INVOLVING US EXPORTS OF TELECOMMUNICATIONS GEAR MEDICAL EQUIPMENT COMPUTERS OR GLASS TO JAPAN IF THE US DOES PURSUE A CASE IT WOULD USE THE THREAT OF TRADE SANCTIONS TO PRESSURE JAPAN IN UNVEILING THE MARKETOPENING MEASURES TUESDAY TOKYO HAD HOPED TO PROVE TO THE US THAT JAPAN IS SERIOUS ABOUT REDUCING ITS MASSIVE GLOBAL TRADE SURPLUS YET IN THE AREAS OF POTENTIALLY GREATEST IMPACT DEREGULATION AND MACROECONOMIC STIMULUS FOR THE AILING JAPANESE ECONOMY IT PUT OFF DIFFICULT DECISIONS FOR SEVERAL MONTHS FOR INSTANCE JAPAN SAID IT EXPECTS TO EXTEND ITS ONEYEAR TAX CUT AND WILL CONTEMPLATE SPENDING MORE ON PUBLIC WORKS TO STIMULATE THE ECONOMY BUT THE GOVERNMENT DEFERRED THOSE DECISIONS UNTIL LATE JUNE SIMILARLY THE GOVERNMENT SAID IT WILL ACCELERATE DEREGULATION IN SEVERAL FIELDS INCLUDING HOUSING TELECOMMUNICATIONS AND FINANCE BUT WON'T ANNOUNCE SPECIFIC MEASURES UNTIL LATER MR KANTOR WHOSE RHETORIC CAN BE BRUSQUE WAS FAIRLY RESTRAINED IN EVALUATING THE JAPANESE PLAN SEVERAL TIMES HE SAID THE US ASSESSMENT SIMPLY ECHOED ANALYSES BY JAPANESE NEWSPAPERS AND BY JAPANESE BUSINESS LEADERS WHO CALLED TOKYO'S PLAN WANTING HE SAID THE US WASN'T DISCOURAGED BY THE JAPANESE OFFER AND EXPECTED AN ENHANCED PACKAGE SOCALLED FRAMEWORK TRADE TALKS WITH JAPAN COLLAPSED IN MIDFEBRUARY AT A SUMMIT MEETING OF PRESIDENT CLINTON AND PRIME MINISTER MORIHIRO HOSOKAWA SEPARATELY JAPAN SAID IT WILL ABANDON ITS VOLUNTARY LIMITS ON AUTOMOBILE EXPORTS WHICH IT CLAIMED HAVE BEEN RENDERED MEANINGLESS BY THE LOW LEVEL OF JAPANESE AUTO EXPORTS SUCH EXPORTS HAVE BEEN FALLING SINCE 1987 AND ARE EXPECTED TO CONTINUE DOING SO LARGELY BECAUSE OF JAPANESE AUTO MAKERS' PRODUCTION IN THE US AT THE SAME TIME HONDA MOTOR CO AND MAZDA MOTOR CORP ANNOUNCED PLANS TO BOOST PURCHASES OF FOREIGN AUTO PARTS JOINING JAPAN'S THREE OTHER BIG AUTO MAKERS IN MAKING SUCH PLANS PUBLIC HONDA SAID IT WILL INCREASE ITS LOCAL PROCUREMENT OF PARTS IN THE US TO 465 BILLION IN THE YEAR ENDING MARCH 31 1996 FROM 321 BILLION IN THE YEAR ENDED MARCH 31 1993 MAZDA SAID IT ALSO PLANNED TO EXPAND ITS LOCAL PROCUREMENT BY ROUGHLY 15 FROM 1994 TO 1997 ALTHOUGH MANY OF THOSE PARTS WILL BE USED IN VEHICLES SOLD BY FORD MOTOR CO AND MADE AT A FORDMAZDA VENTURE IN THE US FOR HIS PART MR KANTOR SAID THE OFFERS WEREN'T AS LARGE AS EXPECTED HE ALSO SAID HE WAS CONCERNED THAT THE GOVERNMENT OF JAPAN ISN'T INVOLVED IN THIS SOCALLED VOLUNTARY EFFORT 9403300076 940330 RECLINERS MOVE INTO GASP LIVING ROOMS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL FOR DECADES THE RECLINER HAS BEEN THE CHERISHED THRONE OF THE MAN OF THE HOUSE A REFUGE FOR DOZING IN FRONT OF THE TELEVISION AND FOR THE WOMAN OF THE HOUSE A CUMBERSOME EYESORE BUT NOW THAT AGING BABY BOOMERS ARE TURNING THEIR HOMES FROM SHOWPLACES INTO COMFORT ZONES RECLINERS ARE BECOMING RESPECTABLE MOVING OUT OF THE DEN AND INTO LIVING ROOMS THE NEW RECLINER MODELS BEAR LITTLE RESEMBLANCE TO THEIR BIG BOXY ANCESTORS BARCALOUNGER CO IN ROCKY MOUNT NC STILL MARKETS A LINE OF HEFTY MACHO MODELS WITH NAMES LIKE TITAN AND NITRO BUT IT HAS ALSO INTRODUCED A SLEEK WOODANDLEATHER MISSIONSTYLE RECLINER AS WELL AS DAINTIER MODELS FOR WOMEN LIKE TIARA AND CRYSTAL WHICH FEATURE TUFTED BACKS AND SKIRTED BOTTOMS FOR CHILDREN NEW YORK TOY RETAILER FAO SCHWARZ MARKETS A 130 KIDDIE LOUNGER ADVERTISED AS A COMFORTABLE SCALEDDOWN RECLINER THAT WILL HOLD UP TO 90 POUNDS OF TIRED TOT FURNITURE MAKERS ARE ALSO ADDING NEW GIMMICKS AND GADGETS TO RECLINERS MANY NOW FEATURE VIBRATORS TELEPHONES HIDDEN IN ARMRESTS READING LIGHTS AND STORAGE DRAWERS FOR MAGAZINES AND THE TELEVISION REMOTE CONTROL IN THE TRADE RECLINERS ARE KNOWN AS MOTION FURNITURE CHAIRS LOVE SEATS AND SOFAS THAT MAY SWIVEL ROCK AND GLIDE AS WELL AS RECLINE FURNITUREINDUSTRY EXPERTS ESTIMATE THAT THERE IS AT LEAST ONE RECLINER IN EVERY FOUR OR FIVE HOUSEHOLDS AND A GROWING NUMBER OF HOMES HAVE TWO OR THREE PEOPLE WANT TO COME HOME FROM WORK AND ADDRESS THE REALITY OF THEIR LIVES NOT THE HALFDOZEN TIMES THEY MAY ENTERTAIN IN A YEAR SAYS DONNA WARNER EDITOR OF METROPOLITAN HOME MAGAZINE ART VAN CO A DETROITBASED FURNITURE CHAIN WITH ANNUAL SALES OF MORE THAN 300 MILLION SAYS THAT 38 OF ITS SALES OF UPHOLSTERED FURNITURE IN 1993 CONSISTED OF RECLINING CHAIRS AND SOFAS UP FROM 25 IN 1992 AT LAZBOY CHAIR CO WHICH PATENTED THE FIRST RECLINING CHAIR IN 1928 SALES HAVE GROWN 45 OVER THE PAST FIVE YEARS RECLINERS HAVE MADE THE WOODEN ROCKING CHAIR PRACTICALLY EXTINCT SAYS PATRICK NORTON SENIOR VICE PRESIDENT OF MARKETING AT LAZBOY A GROWING NUMBER OF WOMEN USE RECLINERS TO ROCK THEIR BABIES TO SLEEP HE ADDS IN PORTLAND ORE ROBIN GLADIEUX DECORATED HER LIVING ROOM LAST YEAR WITH ORIENTAL RUGS A CAMELBACK TAPESTRY SOFA AND AT HER HUSBAND'S INSISTENCE A RECLINER SHE FOUND AN APPROPRIATELY ELEGANT ONE A SLIM LEATHER WING CHAIR WITH MAHOGANY BALLANDCLAW FEET WHEN NOT IN USE ITS FOOTREST TUCKS UNOBTRUSIVELY BENEATH THE SEAT BUT MANY PEOPLE LOOK FOR MORE THAN ELEGANCE IN THEIR RECLINERS AT THE VERY TOP OF THE LINE ARE THE SHAKE AND BAKE RECLINERS EQUIPPED WITH VIBRATORS AND HEATING ELEMENTS THESE FUNCTION AS MECHANICAL MASSEUSES PANASONIC'S LEATHER VERSION PRICED AT 2500 AND UP IS A STRONG SELLER AT THE BROOKSTONE RETAIL CHAIN IN THE HIGH POINT NC WHOLESALE SHOWROOM OF FURNITURE MAKER BERKLINE CORP SECTIONAL RECLINING SOFAS CARRY SIGNS THAT BECKON RETAIL BUYERS TO TEST THEM SQUEEZE ME PULL ME OUT I'M A BED ONE COAXES OR PSST PULL ME DOWN I HAVE A HIDDEN TABLE SILVER OAKS INC IN NEW ALBANY MISS MAKES A RECLINING SECTIONAL SOFA WITH A BUILTIN REFRIGERATOR THAT RETAILS FOR ABOUT 1700 RETAILERS SAY THE GADGETRY SPURS MORE IMPULSE BUYING WHILE SHOPPERS BROWSE AMONG RECLINERS OUR SALESMEN HAVE SOMETHING TO DO BESIDES JUST POINT SAYS TOM DECORTE A FURNITURE BUYER AT ART VAN WE CAN SHOW THEM THE FEATURES WE CAN EDUCATE THEM ABOUT WHAT'S NEW AND WHEN THEY DISCOVER THAT A COUCH CONTAINS TWO RECLINERS HE ADDS PEOPLE FEEL LIKE THEY ARE GETTING A REAL VALUE DEMAND FOR RECLINING FURNITURE IS EXPECTED TO RISE WITH THE GROWTH OF HOMEENTERTAINMENT CENTERS THE BIGSCREEN TVS WITH STEREO SPEAKERS AND VCR ALL HOUSED IN A WALL SYSTEM FURNITURE STORES ARE STARTING TO SELL MORE TVS AND ELECTRONICS TO THE SAME PEOPLE WHO ARE BUYING RECLINING SOFAS SAYS BRITT BEEMER PRESIDENT OF AMERICA'S RESEARCH GROUP FURNITUREINDUSTRY CONSULTANTS RECLINERS DATE BACK TO THE SUMMER OF 1928 WHEN TWO MONROE MICH COUSINS EDWARD KNABUSCH AND EDWIN SHOEMAKER DEVISED A WOODSLAT FOLDING PORCH CHAIR THEY UPHOLSTERED IT THAT FALL AND IT BECAME A YEARROUND BESTSELLER FOR THEIR COMPANY FLORAL CITY FURNITURE CO LATER RENAMED LAZBOY CHAIR CO THROUGH THE YEARS LAZBOY MADE ITS NAME VIRTUALLY SYNONYMOUS WITH RECLINERS HELPED BY TV COMMERCIALS STARRING CELEBRITIES SUCH AS BING CROSBY JOE NAMATH AND ALEX KARAS BARCALOUNGER WILL GET A BIG PLUG OF ITS OWN IN THE MOVIE THE FLINTSTONES SCHEDULED FOR RELEASE THIS SUMMER RICK GOODMAN BARCALOUNGER'S NATIONAL SALES MANAGER SAYS THE MOVIE'S SCRIPT CALLS FOR JOHN GOODMAN WHO PLAYS FRED FLINTSTONE TO REFER TO HIS STONE AGE WOODANDROCK EASY CHAIR AS A BARKALOUNGER 9403300075 940330 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN DON'T PANIC IF YOU CAN'T FILE YOUR RETURN ON TIME OR PAY YOUR ENTIRE TAX BILL TO GET AN AUTOMATIC FOURMONTH EXTENSION JUST FILE FORM 4868 WHICH IS ONLY ONE PAGE BY APRIL 15 THAT IS WHAT 55 MILLION PEOPLE DID LAST YEAR THIS WON'T GIVE YOU ANY EXTRA TIME TO PAY YOU STILL ARE SUPPOSED TO ESTIMATE YOUR TAX BILL AND PAY ANY PROJECTED BALANCE DUE WHEN FILING FOR THE EXTENSION THE IRS CHARGES INTEREST ON TAXES NOT PAID BY APRIL 15 BUT EVEN IF YOU CAN'T PAY IN FULL YOU STILL GET THE EXTENSION PROCRASTINATORS ALSO MAY BE HIT BY A LATEPAYMENT PENALTY IF THE AMOUNT THEY PAY BY APRIL 15 IS LESS THAN 90 OF THEIR ACTUAL 1993 TAX THOSE WHO HAVE DONE THEIR RETURNS BUT CAN'T PAY THE FULL AMOUNT MIGHT CONSIDER PROPOSING AN INSTALLMENT PLAN ATTACH FORM 9465 TO THE FRONT OF YOUR TAX RETURN TELLING THE AGENCY HOW MUCH AND WHEN YOU PROPOSE TO PAY EACH MONTH THE IRS SHOULD ACCEPT OR REJECT THAT OFFER WITHIN 30 DAYS APRIL FOOL'S DAY IS AN IMPORTANT DEADLINE FOR MANY PUBLIC COMPANIES THE NEW TAX LAW SIGNED BY PRESIDENT CLINTON LAST OCTOBER GENERALLY BARS PUBLICLY HELD COMPANIES FROM DEDUCTING PAY ABOVE 1 MILLION TO THE CHIEF EXECUTIVE OFFICER AND CERTAIN OTHER TOP EXECUTIVES THIS IS EFFECTIVE FOR TAXABLE YEARS BEGINNING ON OR AFTER JAN 1 OF THIS YEAR THE CHANGE DOESN'T INCLUDE PERFORMANCEBASED PAY AS LONG AS THE COMPENSATION COMMITTEE OF A COMPANY'S BOARD OF DIRECTORS SETS PERFORMANCE GOALS BEFORE FRIDAY BUT MANY COMPANIES WON'T MEET THAT DEADLINE BECAUSE THEY STILL ARE STUDYING WHAT THE PROPER PERFORMANCE MEASURES SHOULD BE SAYS SAMUEL E BERGER OF PRICE WATERHOUSE IN NEW YORK INSTEAD SOME COMPANIES ARE CONSIDERING DEFERRING PAY OVER 1 MILLION TO TOP EXECUTIVES UNTIL THOSE PEOPLE RETIRE OR LEAVE HE SAYS SETTING THE GOALS CAN BE REMARKABLY TRICKY FOR EXAMPLE AT THE TIME THE GOALS ARE SET THE OUTCOME MUST BE SUBSTANTIALLY UNCERTAIN A RULE THAT IS AS CLEAR AS MUD MR BERGER SAYS COMPANIES HOPE FOR MORE CLARITY WHEN THE IRS ISSUES FINAL REGULATIONS SUPPORT GROWS FOR A PLAN TO LET PEOPLE USE CREDIT CARDS TO PAY THE IRS TREASURY OFFICIALS ARE STUDYING PROPOSED LEGISLATION THAT WOULD LET TAXPAYERS USE PLASTIC TO PAY THE IRS THE EASIER IT IS TO PAY THE MORE PEOPLE WILL FILE TAX EXPERTS REASON THE IDEA IS ENDORSED BY VICE PRESIDENT AL GORE'S NATIONAL PERFORMANCE REVIEW REPORT AT LEAST 11 STATES ALLOW CARD USE FOR STATE TAXES SAYS A REPORT BY THE GENERAL ACCOUNTING OFFICE A CONGRESSIONAL AGENCY BUT MANY QUESTIONS REMAIN SAYS ANDRE FOGARASI OF ARTHUR ANDERSEN IN WASHINGTON FOR EXAMPLE HE ASKS WOULD THOSE WHO PAY BY CREDIT CARD HAVE TO PAY A FEE IN SOME STATES TAXPAYERS NOW MUST PAY A TRANSACTION FEE TO AN INTERMEDIARY COMPANY IN ADDITION TO THE TAXES THEY OWE THAT STATE THE GAO SAYS ALSO CREDITCARD COMPANIES WANT CONGRESS TO PROTECT THEM AGAINST PEOPLE WHO CHARGE TAXES AND LATER GO BANKRUPT STATES GIVE MIXED REVIEWS TO CREDITCARD TAX PAYMENTS AS A TAXCOLLECTION TOOL THE GAO REPORT SAYS RAISING REVENUE WITHOUT RAISING TAXES IRS COMMISSIONER RICHARDSON SAYS ABOUT 83 OF TAXES DUE ARE VOLUNTARILY REPORTED AND PAID ON TIME SHE VOWS IMPROVEMENT SAYING THAT FOR EACH ONE PERCENTAGE POINT INCREASE IN COMPLIANCE THE US CAN RAISE 7 BILLION TO 10 BILLION A YEAR CONFUSED TAXPAYERS BOMBARD THE IRS WITH TELEPHONE CALLS SEEKING ASSISTANCE THE IRS SAYS CALLS FROM JANUARY THROUGH MIDMARCH ROSE 65 FROM A YEAR AGO ONCE AGAIN CALLERS COMPLAIN OF GREAT DIFFICULTY GETTING THROUGH MORE LAWMAKERS INTRODUCE BILLS TO OVERTURN A 1993 SUPREME COURT RULING MAKING IT TOUGHER FOR MANY PEOPLE TO DEDUCT THE COSTS OF A HOME OFFICE THE DECISION UNFAIRLY PENALIZES MANY SMALL BUSINESSES SAYS REPUBLICAN SEN HATCH OF UTAH BUT TAX EXPERTS SAY CONGRESS PROBABLY WON'T ACT ON THE ISSUE THIS YEAR A MODEST PROPOSAL JAMES BOREN PRESIDENT OF THE INTERNATIONAL ASSOCIATION OF PROFESSIONAL BUREAUCRATS MOTTO WHEN IN DOUBT MUMBLE SUGGESTS A NATIONAL TAX LOTTERY WITH WINNERS RECEIVING AWARDS BASED ON THEIR TAX PAYMENTS THAT YEAR GRAND PRIZE NO TAXES FOR LIFE AN ARTFUL IDEA THE IRS MAY GIVE ART DONORS ADVANCE VALUATIONS OF GIFTS PRODDED BY CONGRESS TREASURY OFFICIALS ARE STUDYING A PROPOSAL THAT SOME TAX EXPERTS SAY COULD REDUCE THE NUMBER OF BATTLES BETWEEN ART DONORS AND THE IRS OVER THE VALUE OF CHARITABLE DONATIONS UNDER THE PROPOSAL THE IRS WOULD PROVIDE DONORS WITH IRS VALUATIONS OF MAJOR ARTWORKS BEFORE A GIFT IS MADE UNDER THE CURRENT SYSTEM THE IRS WILL NOT GIVE VALUATIONS AHEAD OF TIME IRS COMMISSIONER RICHARDSON SAYS THE IDEA WOULD BE VERY HELPFUL AND MAKES A LOT MORE SENSE THAN THE SYSTEM USED NOW SHE ALSO SAYS THE IRS CAN MAKE THE CHANGE WITHOUT NEW LEGISLATION TREASURY OFFICIALS SAY THEY EXPECT TO ISSUE A REPORT LATER THIS YEAR THE SOONER THE BETTER ART EXPERTS SAY ADVANCE VALUATIONS WOULD BE AN EXCELLENT IDEA SAYS ANDRE EMMERICH A NEW YORK ART DEALER AND A FORMER MEMBER OF THE IRS'S ARTADVISORY PANEL BRIEFS AS OF MARCH 18 THE IRS HAD RECEIVED 522 MILLION INDIVIDUAL TAX RETURNS OR 350000 FEWER THAN A YEAR AGO IT EXPECTS 117 MILLION THIS YEAR PIZZA TAX SLICE ON APRIL 15 DOMINO'S PIZZA CUSTOMERS WON'T HAVE TO PAY ANY SALES TAX ON THEIR MEAL IF THEY SHOW A COPY OF THEIR 1994 TAX RETURN 9403300074 940330 CORRECTIONS & AMPLIFICATIONS VARIAN ASSOCIATES INC SUPPLIES EQUIPMENT USED TO MAKE SEMICONDUCTORS AN ARTICLE MONDAY INCORRECTLY STATED THAT VARIAN IS A SEMICONDUCTOR MAKER 9403300073 940330 BUSINESS BRIEF DOFASCO INC INVESTMENT GROUP TO ACQUIRE STEEL UNIT AND TAKE IT PUBLIC DOFASCO INC SAID A GROUP OF INVESTMENT DEALERS AGREED TO PURCHASE ITS PRUDENTIAL STEEL LTD UNIT FOR 100 MILLION CANADIAN DOLLARS US728 MILLION DOFASCO A STEELMAKER BASED IN HAMILTON ONTARIO SAID THE GROUP LED BY RBC DOMINION SECURITIES INC OF TORONTO PLANS TO SELL THE SHARES OF PRUDENTIAL TO THE PUBLIC THROUGH AN INITIAL OFFERING CALGARY ALBERTABASED PRUDENTIAL MAKES CARBON STEEL TUBULAR PRODUCTS USED IN THE OILANDGAS INDUSTRY IT ALSO MAKES CERTAIN INDUSTRIAL STEEL PRODUCTS A SPOKESMAN FOR DOFASCO SAID THE COMPANY EXPECTS TO RECORD A ONETIME GAIN OF ABOUT C60 MILLION IN THE SECOND QUARTER IN WHICH THE TRANSACTION IS EXPECTED TO CLOSE 9403300072 940330 FORMER EXECUTIVES OF COMPTRONIX SETTLE SEC FRAUD CHARGES WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION SAID IT FILED AND SIMULTANEOUSLY SETTLED A LAWSUIT CHARGING THREE FORMER EXECUTIVES OF COMPTRONIX CORP WITH OVERSTATING THE COMPANY'S EARNINGS IN THE LAWSUIT FILED IN US DISTRICT COURT FOR THE DISTRICT OF COLUMBIA THE SEC ALLEGED THAT WILLIAM J HEBDING FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALLEN L SHIFFLET FORMER PRESIDENT AND CHIEF OPERATING OFFICER AND J PAUL MEDLIN FORMER CONTROLLER TREASURER AND ASSISTANT SECRETARY ENGAGED IN A FRAUDULENT SCHEME TO OVERSTATE EARNINGS OF THE ELECTRONIC PARTS MANUFACTURER BETWEEN 1989 AND 1992 IT ALSO CHARGES THAT THE THREE MEN CAMOUFLAGED THE SCHEME FROM THE BOARD AND INDEPENDENT AUDITORS BY ALTERING FALSIFYING AND COUNTERFEITING DOCUMENTS AND MANIPULATING ACCOUNTING RECORDS WITHOUT ADMITTING OR DENYING GUILT THE THREE MEN AGREED TO THE ENTRY OF FINAL JUDGMENTS PERMANENTLY ENJOINING THEM FROM VIOLATING ANTIFRAUD REPORTING RECORDKEEPING AND INTERNAL CONTROL PROVISIONS OF FEDERAL SECURITIES LAWS IN ADDITION THE MEN AGREED NOT TO SERVE AS OFFICERS OR DIRECTORS OF ANY PUBLIC COMPANY THEY ALSO AGREED TO PAY BACK BONUSES AND DISGORGE TRADING LOSSES THEY AVOIDED DURING THE PERIOD MR HEBDING DECLINED TO COMMENT ON THE SETTLEMENT MESSRS SHIFFLET AND MEDLIN WERE UNAVAILABLE FOR COMMENT THE GUNTERSVILLE ALA COMPANY SAID IT EXPECTS TO RECEIVE REPAYMENT OF BONUSES TOTALING 390000 MR HEBDING AND MR SHIFFLETT WERE ORDERED TO PAY 100000 AND 50000 RESPECTIVELY THE COURT DID NOT IMPOSE A MONETARY PENALTY ON MR MEDLIN DUE TO HIS INABILITY TO PAY ACCORDING TO THE SEC IN ADDITION MR HEBDING AGREED NOT TO APPEAR OR PRACTICE BEFORE THE SEC AS AN ACCOUNTANT COMPTRONIX ALSO ENTERED INTO A SETTLEMENT WITH THE SEC THAT RESOLVES THE COMMISSION'S INVESTIGATION OF THE COMPANY 9403300071 940330 BUSINESS BRIEF CROWN CORK & SEAL CO COMPANY TO BEGIN RECYCLING PLASTICS THROUGH SUBSIDIARY CROWN CORK & SEAL CO SAID IT PLANS TO BEGIN RECYCLING PLASTIC PACKAGING THROUGH ITS NATIONWIDE RECYCLERS INC SUBSIDIARY THE UNIT WHICH ALREADY RECYCLES USED ALUMINUM AND BIMETALLIC BEVERAGE CANS IS BUILDING A NEW 6 MILLION PLASTICS RECYCLING CENTER IN NORTH CAROLINA WHICH IS EXPECTED TO OPEN IN JUNE THE FACILITY WILL BE ABLE TO PROCESS ABOUT 40 MILLION POUNDS A YEAR OF USED POLYETHYLENE TEREPHTHALATE AND HIGH DENSITY POLYETHYLENE CONTAINERS THE MATERIAL WILL BE GROUND WASHED AND REPELLETIZED FOR USE IN THE PRODUCTION OF NEW CONTAINERS CROWN CORK IS A PHILADELPHIABASED WORLDWIDE PRODUCER OF METAL AND PLASTIC CONTAINERS CROWNS CLOSURES AND PACKAGING MACHINERY 9403300070 940330 MARKETING & MEDIA BEST SELLING BOOKS THE WALL STREET JOURNAL'S LIST REFLECTS NATIONWIDE SALES OF HARDCOVER BOOKS DURING THE WEEK ENDED LAST SATURDAY AT MORE THAN 2500 B DALTON BARNES & NOBLE BOOKLAND BOOKSAMILLION BOOKSTAR BOOKSTOP BORDERS BRENTANO'S CROWN BOOKS DOUBLEDAY SCRIBNERS SUPER CROWN AND WALDENBOOKS STORES THE SALES INDEX PEGGED AT 100 FOR THE BESTSELLING FICTION BOOK EACH WEEK INDICATES RELATIVE SALES VOLUME ACROSS TITLES AND CATEGORIES 9403300069 940330 BUSINESS BRIEF TETRA TECHNOLOGIES INC COMPANY TO PAY 85 MILLION TO ACQUIRE REST OF VENTURE TETRA TECHNOLOGIES INC SAID IT WILL PAY 85 MILLION TO A UNIT OF BAKER HUGHES INC FOR THE REMAINING 50 INTEREST IN A JOINT VENTURE THE ACQUISITION SHOULD CLOSE BY MAY 24 BRINGING TETRA TECHNOLOGIES' TOTAL INTEREST IN THE VENTURE TO 100 THE COMPANY SAID TETRA TECHNOLOGIES A CHEMICAL COMPANY BASED IN THE WOODLANDS TEXAS SAID THE JOINT VENTURE WITH BAKER HUGHES'S INTEQ UNIT WAS FORMED IN MAY 1991 TO SELL AND MARKET CLEAR BRINE FLUIDS AND RELATED PRODUCTS OUTSIDE THE CONTINENTAL US TETRA TECHNOLOGIES SAID IT WILL ALIGN ITSELF WITH INTEQ THROUGH STRATEGIC ALLIANCE AGREEMENTS TO CONTINUE TO OFFER THE SAME SERVICES AND PRODUCTS FORMERLY OFFERED BY THE JOINT VENTURE 9403300068 940330 WHO'S NEWS JAN BELL MARKETING INC JAN BELL MARKETING INC SUNRISE FLA ALAN LIPTON PRESIDENT AND CHIEF EXECUTIVE OFFICER HAS ASSUMED THE POSTS OF CHAIRMAN AND CEO ON AN INTERIM BASIS ACCORDING TO THE JEWELRY DESIGNER AND MANUFACTURER MR LIPTON 43 YEARS OLD SUCCEEDS LEE A MILLS 44 AS CHAIRMAN THE COMPANY GAVE NO REASON FOR THE CHANGE NEITHER MR LIPTON NOR MR MILLS WAS AVAILABLE FOR COMMENT JAN BELL SAID IT IS CONDUCTING A SEARCH TO FILL THE POSITIONS OF CHAIRMAN AND PRESIDENT WITH INDIVIDUALS WITH INDEPTH RETAIL EXPERIENCE AND EXPERTISE THE MOVES THE COMPANY SAID ARE PART OF ITS TRANSITION FROM A WHOLESALER TO A RETAILER AS REPORTED JAN BELL EXPECTS TO POST OPERATING LOSSES FOR BOTH THE FOURTH QUARTER AND FULL YEAR THE COMPANY SAID SALES AND MARGINS WERE LOWER THAN EXPECTED 9403300067 940330 WHO'S NEWS NTN COMMUNICATIONS INC NTN COMMUNICATIONS INC CARLSBAD CALIF PETE ROZELLE AND KENNETH HAMLET WERE ELECTED DIRECTORS OF THIS PROGRAMMER AND BROADCASTER OF INTERACTIVE ENTERTAINMENT PROGRAMMING THEY SUCCEED RONALD E HOGAN AND MICHAEL J DOWNS WHO RESIGNED FROM THE BOARD BUT REMAIN OFFICERS OF THE COMPANY MR HOGAN 54 YEARS OLD IS SENIOR VICE PRESIDENT OF FINANCE CHIEF FINANCIAL OFFICER AND SECRETARY MR DOWNS 60 IS VICE PRESIDENT AND DIRECTOR OF EDUCATION MR ROZELLE 68 A COMMISSIONER OF THE NATIONAL FOOTBALL LEAGUE FROM 1960 TO 1989 ACTS ON A CONSULTING BASIS FOR THE NFL MR HAMLET 49 WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HOLIDAY INNS INC FROM 1980 TO 1990 AND IS OWNER AND PARTNER OF NKI HOSPITALITY HOTEL/INVESTMENT MANAGEMENT 9403300066 940330 TECHNOLOGY BRIEF PROCTER & GAMBLE CO JOINT PERIODONTAL PRODUCT WITH ALZA CLEARED FOR SALE PROCTER & GAMBLE CO AND ALZA CORP SAID THEIR NEW PERIODONTAL TREATMENT HAD BEEN CLEARED FOR MARKETING IN THE US THE PRESCRIPTION PRODUCT TO BE KNOWN AS ACTISITE IS A SMALL PACKET OF TETRACYCLINE INSERTED DIRECTLY INTO THE PERIODONTAL POCKET FOR CONTROLLED CONTINUOUS RELEASE OVER 10 DAYS TO TREAT PERIODONTITISA PROGRESSIVE DISEASE THAT ATTACKS THE SUPPORTING STRUCTURES OF TEETH THE TREATMENT WILL BE SOLD TO DENTISTS FOR ABOUT 20 ACTISITE IS MANUFACTURED BY ALZA AND WILL BE MARKETED JOINTLY BY P&G A CINCINNATI CONSUMER PRODUCTS COMPANY AND ALZA OF PALO ALTO CALIF A MAKER OF THERAPEUTIC SYSTEMS FOR ADMINISTERING DRUGS 9403300065 940330 INTERNATIONAL BRIEF KAWASAKI HEAVY INDUSTRIES LTD JAPANESE GOVERNMENT PLANS TO BUY AIRPLANE FROM FIRM THE JAPANESE GOVERNMENT PLANS TO PURCHASE A 13 BILLION YEN TO 14 BILLION YEN 1249 MILLION TO 1345 MILLION EP3 RECONNAISSANCE AIRPLANE FROM KAWASAKI HEAVY INDUSTRIES LTD A FOREIGN MINISTRY OFFICIAL SAID THE OFFICIAL SAID THE FOURPROPELLER PLANE IS ACCOUNTED FOR IN THE BUDGET FOR THE FISCAL YEAR ENDING MARCH 31 AND SAID HE WOULD LOOK FOR A MARCH 1996 DELIVERY THE GOVERNMENT HAS ALREADY TAKEN DELIVERY OF TWO SUCH PLANES FOR ITS SELF DEFENSE FORCES AND HAS ANOTHER PLANE ON ORDER A KAWASAKI HEAVY INDUSTRIES OFFICIAL INDICATED THE COMPANY ALREADY FACTORED THE EXPECTED ORDER INTO ITS EARNINGS FORECAST 9403300064 940330 BUSINESS BRIEF MERCANTILE BANKSHARES CORP PRICE OF 416 MILLION IS SET FOR FREDERICKSBURG NATIONAL MERCANTILE BANKSHARES CORP AGREED TO BUY FREDERICKSBURG NATIONAL BANCORP INC FOR ABOUT 416 MILLION IN STOCK TERMS CALL FOR MERCANTILE TO ISSUE 284 COMMON SHARES FOR EACH OF FREDERICKSBURG'S 788112 SHARES OR ABOUT 22 MILLION MERCANTILE SHARES MERCANTILE BANKSHARES HAS ABOUT 495 MILLION SHARES OUTSTANDING IN NASDAQ STOCK MARKET TRADING MERCANTILE CLOSED AT 18625 DOWN 50 CENTS MERCANTILE BANKSHARES A BANKHOLDING COMPANY BASED IN BALTIMORE MD HAS MORE THAN 55 BILLION IN ASSETS FREDERICKSBURG NATIONAL'S PRINCIPAL BANKING UNIT NATIONAL BANK OF FREDERICKSBURG HAS 236 MILLION IN ASSETS 9403300063 940330 FINANCING BUSINESS WESTINGHOUSE ELECTRIC CORP WESTINGHOUSE ELECTRIC CORP PITTSBURGH SAID IT ISSUED ABOUT 520 MILLION OF PREFERRED EQUITY SECURITIES IN A PRIVATE PLACEMENT PROCEEDS WILL BE USED FOR DEBT REDUCTION AND REBUILDING FINANCIAL STRENGTH CHAIRMAN MICHAEL JORDAN SAID IN A STATEMENT THE ISSUE IS MANDATORILY CONVERTIBLE INTO COMMON STOCK JUNE 1 1997 THIRTYSIX MILLION DEPOSITARY SHARES WERE SOLD WITH EACH SHARE REPRESENTING ONETENTH OF A SHARE OF THE COMPANY'S SERIES C CONVERSION PREFERRED STOCK THE PRICE WAS 1444 A DEPOSITARY SHARE WITH AN ANNUAL DIVIDEND OF 130 A SHARE UNTIL CONVERSION THE UNDERWRITERS WERE MORGAN STANLEY & CO GOLDMAN SACHS & CO AND LEHMAN BROTHERS INC 9403300062 940330 SHACKLED TIGER' SOUTH KOREAN LEADER STRUGGLES TO FREE UP A REGULATED ECONOMY DESPITE SUCCESSES INDUSTRY IS TANGLED IN RED TAPE LESS ABLE TO COMPETE RESISTED BY THE BUREAUCRACY BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA THE GETACQUAINTED SESSION BETWEEN PRESIDENT KIM YOUNG SAM AND SIR LEON BRITTAN LATE LAST YEAR WAS GOING SMOOTHLY WHEN MR KIM DROPPED SOMETHING OF A BOMBSHELL I BELIEVE IN ECONOMIC REFORM AND OPENING UP KOREA'S MARKETS TO FOREIGN PRODUCTS BECAUSE IT'S GOOD FOR KOREA PRESIDENT KIM TOLD THE EUROPEAN UNION'S TRADE ENVOY THEN GESTURING TO THE CABINET MEMBERS AT HIS SIDE HE CONTINUED THE PROBLEM IS THAT THEY DON'T BELIEVE THAT THE REMARK WAS MEANT MORE TO SHAME MR KIM'S MINISTERS WHO AREN'T USED TO PUBLIC REPRIMANDS THAN TO ASSUAGE SIR LEON BUT THE MESSAGE WAS CLEAR KOREA'S BUREAUCRATS ARE QUIETLY SUBVERTING MANY OF THE CHANGES THE PRESIDENT AND OTHERS CONSIDER VITAL IF THE COUNTRY IS TO AVOID BECOMING THE FIRST OF THE ASIAN TIGERS TO LOSE ITS TEETH AND IT IS UP TO THE MINISTERS MOST OF WHOM ARE COMMITTED REFORMERS BUT UNTESTED IN BUREAUCRATIC TURF BATTLES TO KEEP THEIR TROOPS IN LINE UNLESS KOREA REVIVES ITS COMPETITIVENESS BY DEREGULATING BUSINESS LIBERALIZING ITS FINANCIAL MARKETS AND REVERSING A STEEP DECLINE IN FOREIGN INVESTMENT SOME GOVERNMENT ECONOMISTS AND PRIVATE ANALYSTS SAY IT WILL BE OVERTAKEN BY NEWLY EMERGING ECONOMIC POWERS IN ASIA AND LATIN AMERICA THIS CONCERN WEIGHS AS HEAVILY ON MR KIM'S MIND AS THE CRISIS OVER NORTH KOREA'S NUCLEAR PROGRAM WHICH HAS PUSHED SOUTH KOREA INTO GEOPOLITICAL PROMINENCE JUST AS IT IS FADING FROM THE WORLD STAGE AS AN EMERGING INDUSTRIAL POWER LESS THAN A DECADE AGO SOUTH KOREA HAD THE WORLD'S FASTEST GROWING ECONOMY THE NEXT JAPAN PEOPLE OFTEN SAID THANKS TO A SMOOTH PATERNAL RELATIONSHIP BETWEEN GOVERNMENT AND BUSINESS NOW THAT AXIS IS CRUMBLING WITH BUSINESS FIGHTING TO BREAK FREE OF RED TAPE AND BUREAUCRATS STRUGGLING TO RETAIN CONTROL RISING WAGES COUPLED WITH CHRONICALLY HIGH INTEREST RATES A RESULT OF THE GOVERNMENT'S TIGHT REIN ON LIQUIDITY HAVE PRICED KOREAN GOODS OUT OF THE WORLD'S MOST LUCRATIVE EXPORT MARKETS REGULATIONS THAT HAMPER THE RAISING OF CAPITAL HAVE HOBBLED LOCAL INDUSTRY BARRIERS TO FOREIGN INVESTMENT LEGACIES OF KOREA'S PAST AUTOCRATIC REGIMES HAVE CHASED AWAY THE KIND OF HIGHTECH JOINT VENTURES THE COUNTRY NEEDS TO PRESERVE ITS COMPETITIVE EDGE KOREA'S NO 1 PROBLEM IS THE BUREAUCRACY SAYS ROBERT BROADFOOT MANAGING DIRECTOR OF POLITICAL & ECONOMIC RISK CONSULTANCY LTD A HONG KONG RESEARCH FIRM IF YOU TALK TO SOME KOREAN BUSINESSMEN IT'S LIKE THEY HAVE A BOWLING BALL STRAPPED TO THEIR LEGS THE CHALLENGE IS SIMILAR TO THAT CONFRONTING JAPAN WHERE BUSINESS IS ALSO HINDERED BY REGULATION BUT THE STAKES ARE HIGHER FOR KOREAN COMPANIES WHICH CAN'T YET COMPETE EFFECTIVELY IN SOPHISTICATED MARKETS AND ARE BEING UNDERCUT IN LOWWAGE INDUSTRIES BY CHEAPER GOODS FROM EVOLVING NATIONS MR KIM A FORMER DISSIDENT AND SOUTH KOREA'S FIRST CIVILIAN PRESIDENT IN 30 YEARS HAS PLEDGED TO RESHAPE ITS TIGHTLY CORSETED ECONOMY INTO ONE RULED BY FREE MARKETS WE MUST WASTE NO TIME IN REFORMING AND ENERGIZING THE BUREAUCRACY HE SAID IN A FEBRUARY SPEECH MARKING HIS FIRST YEAR IN OFFICE UNNECESSARY REGULATIONS MUST BE RESOLUTELY ABOLISHED THE PRESIDENT GETS HIGH MARKS FROM LIBERALMINDED POLICY MAKERS AND FOREIGN INVESTORS FOR MAKING DEREGULATION HIS TOP PRIORITY UNDER HIS ADMINISTRATION COMMUNICATION BETWEEN THE ECONOMICS MINISTRIES AND FOREIGN BUSINESS HAS VASTLY IMPROVED INTEREST RATES WHICH A FEW YEARS AGO PEAKED AT AROUND 18 HAVE BEEN DEREGULATED AND ARE BEGINNING TO EASE THE BUREAUCRACY HAS BEEN ORDERED TO STREAMLINE AND A WATCHDOG BODY HAS BEEN CREATED TO ENSURE THAT CHANGE IS IMPLEMENTED AT GROUND LEVEL BUT PROGRESS IS SLOW AFTER A GENERATION OF CENTRAL PLANNING EVEN CABINET MEMBERS FAVORING MARKET REFORM ARE INTIMIDATED BY THE PROSPECT CREDIT IS STILL TIGHTLY CONTROLLED AND INTEREST RATES AROUND 11 FOR THE SOUTH KOREAN EQUIVALENT OF THE PRIME RATE ARE ABOVE THE REGIONAL AVERAGE MINISTERS WHO IMPLEMENT AGGRESSIVE CHANGES ARE OFTEN OUTMANEUVERED BY CAREER CIVIL SERVANTS WHO LIKE THINGS THE WAY THEY ARE SHRINKING THE COUNTRY'S HUGE MINISTRIES WILL TAKE YEARS GIVEN EMPLOYMENT LAWS THAT BAR WESTERNSTYLE LAYOFFS EVEN REFORMMINDED BUREAUCRATS DEFEND A SLOW PACE FOR CHANGE SAYS A FORMER DEPUTY DIRECTOR AT THE FINANCE MINISTRY WE SIMPLY DON'T HAVE THE EXPERTISE IN THE BANKING INDUSTRY TO DEREGULATE ANY FASTER HISTORICAL FACTORS HAVE ENDOWED KOREA'S CIVIL SERVANTS WITH CONSIDERABLE POWER AFTER THE KOREAN WAR A SERIES OF AUTOCRATS CHARGED THE BUREAUCRACY WITH CHARTING THE COUNTRY'S STUNNING INDUSTRIALIZATION IT DECIDED WHICH COMPANIES WOULD DEVELOP WHICH INDUSTRIES WITH FUNDING CONTROLLED BY THE CENTRAL BANK IN A NATION SUSPICIOUS OF FOREIGNERS THE BUREAUCRACY ALSO HAS BEEN ENTRUSTED WITH THE JOB OF TIGHTLY REGULATING ALIEN INFLUENCES INCLUDING IMPORTS AND INVESTMENT FOR PRESIDENT KIM AN OUTSIDER WITH A NARROW POWER BASE SUCH INTERESTS ARE TOO POTENT TO CHALLENGE HEADON HIS SUCCESSFUL RAID LAST AUGUST ON KOREA'S VAST UNDERGROUND ECONOMY FOR EXAMPLE WAS WAGED WITH GUERRILLA TACTICS SOON AFTER HIS ELECTION HE DECIDED TO PROHIBIT THE USE OF FALSE NAMES IN BANKING TRANSACTIONS FOR MORE THAN A GENERATION THE PRACTICE BANKROLLED SOUTH KOREA'S ONCERAMPANT CORRUPTION ALLOWING FOR EXAMPLE LARGE POLITICAL CONTRIBUTIONS TO REMAIN UNTRACEABLE WHILE STUNTING THE FINANCIAL SYSTEM ACCESS TO OFFICIAL CAPITAL MARKETS WAS SO POOR THAT MOST SMALL BUSINESSES WERE FORCED TO USE UNDERGROUND SOURCES FOR FUNDING MR KIM HAD TO MOVE FURTIVELY LEST THE BENEFICIARIES OF THE FALSENAMES SYSTEM FOIL HIS PLANS HE SELECTED A TASK FORCE OF ABOUT 14 PEOPLE TO HAMMER OUT A STRATEGY AND SWORE THEM TO SILENCE EACH NIGHT FOR TWO MONTHS THE TEAM CRUNCHED NUMBERS IN A SPARELY LIT RENTED OFFICE TO AVOID SUSPICION SOME SENT THEIR FAMILIES ON TRIPS ABROAD A FEW WORKED FULL TIME TELLING THEIR STAFFS THEY WERE IN HAWAII ATTENDING A CONFERENCE THE RUSE WORKED AT AN EVENING PRESS CONFERENCE IN AUGUST MR KIM UNVEILED A PLAN TO PHASE OUT FALSENAME BANKING TRANSACTIONS LEAVING HIS RIVALS FLATFOOTED IF THE REFORM WAS A VICTORY FOR MR KIM IT ALSO REVEALED HIS LIMITATIONS THE ADMINISTRATION SET ASIDE A 12 BILLION EMERGENCY FUND TO HELP SMALL BUSINESS SURVIVE THE TRANSITION ONLY A FRACTION OF THE MONEY WAS DISTRIBUTED HOWEVER BECAUSE BANKERS REFUSED TO LEND TO COMPANIES WITHOUT ADEQUATE COLLATERAL TWO MONTHS AFTER THE ANNOUNCEMENT THE NUMBER OF BANKRUPTCIES AMONG SMALL AND MIDSIZED BUSINESSES HAD TRIPLED FROM THE LIKE PERIOD IN 1992 THE COMMERCIAL BANKS USED TO DO WHATEVER THE GOVERNMENT TOLD THEM AN AIDE TO MR KIM SAYS BUT NOT UNDER THIS ADMINISTRATION PRIORITIES CLASH EVEN WITHIN THE BUREAUCRACIES THEMSELVES CONSIDER THE CASE OF LIM CHANG YUEL THE CAREER CIVIL SERVANT HAS SPEARHEADED A FIVEYEAR PLAN FOR ECONOMIC CHANGE THAT WAS ROUNDLY PRAISED BY NEGOTIATORS AT THE URUGUAY ROUND TRADE TALKS IN GENEVA LAST YEAR KOREA SHOWED ITSELF TO BE ONE OF THE COUNTRIES MOST COMMITTED TO REFORM HE SAYS WE WERE THE ONLY ONES WHO HAD SOMETHING ON THE TABLE WHEN WE ARRIVED MR LIM HAS CULTIVATED A HEALTHY DIALOGUE WITH INTERNATIONAL BUSINESSMEN AT A MEETING EARLY THIS YEAR WITH THE AMERICAN CHAMBER OF COMMERCE'S FOREIGN BANKERS GROUP HE SOUGHT TO ALLAY CONCERNS THAT A SOMEWHAT VAGUE PROVISION IN KOREA'S BANKINGREFORM LAW WAS INTENDED TO DISCRIMINATE AGAINST FOREIGN BANKS AT THE SAME TIME UNKNOWN TO MR LIM A JUNIOR MINISTRY OFFICIAL WAS SAYING JUST THE OPPOSITE IN A TELEPHONE CONVERSATION TO AN ASSISTANT TO PAUL MUTHER VICE PRESIDENT AND GENERAL MANAGER OF THE FIRST NATIONAL BANK OF CHICAGO AND CHAIRMAN OF THE FOREIGN BANKERS' GROUP HE TOLD US THE PROVISION DID INDEED DISCRIMINATE AGAINST FOREIGN BANKS AND IF WE DIDN'T LIKE IT WE COULD MOVE OUR HEADQUARTERS TO KOREA AND BECOME A LOCAL BANK RECALLS MR MUTHER ADDING HE WILL TAKE THE ISSUE DIRECTLY TO MR LIM MR LIM SAYS HE WAS UNAWARE OF HIS SUBORDINATE'S ACTION IF KOREA'S REGULATORY ENVIRONMENT IS CONFUSING FOR FOREIGNERS IT IS JUST AS BAD FOR LOCAL INDUSTRY DESPITE ITS RHETORIC THE GOVERNMENT HASN'T COMPLETELY BROKEN ITS HABIT OF INTERVENING IN KOREA'S FINANCIAL MARKETS IN FEBRUARY THE FINANCE MINISTRY CLIPPED A BULL RUN ON THE STOCK MARKET IN PART BY ORDERING FINANCIAL INSTITUTIONS TO DUMP THEIR SHAREHOLDINGS MORE RECENTLY IT DECIDED TO RETAIN ITS AUTHORITY TO LIMIT EQUITYRELATED INSTRUMENTS ISSUED OVERSEAS THIS YEAR THAT LIMIT HAS BEEN SET AT ABOUT 25 BILLION AMONG THE 30 OR SO COMPANIES IN NEED OF CAPITAL ARE HYUNDAI MOTOR CO AND KIA MOTORS CO WHICH HOPE TO ISSUE GLOBAL DEPOSITORY RECEIPTS WORTH 60 MILLION AND 150 MILLION RESPECTIVELY TO HELP FINANCE THEIR PUSH INTO THE US MARKET OTHERS WANT TO RAISE FUNDS TO LOCALIZE PRODUCTION ABROAD TO ESCAPE HIGH INTEREST RATES AND LABOR COSTS AT HOME ONLY A FEW ARE EXPECTED TO GET THE NOD MINISTRY OFFICIALS INCLUDING MR LIM SAY THE SIZE OF OVERSEAS ISSUES MUST BE RESTRICTED TO CONTROL INFLATION BUT BUSINESSPEOPLE CITE THE LIMIT AS ANOTHER FACTOR IN KOREA'S DECAYING COMPETITIVENESS WE HAVE A LIQUIDITY PROBLEM IN THIS COUNTRY BUT IT'S NOT BECAUSE THERE'S A SHORTAGE OF CASH IN THE SYSTEM SAYS MILTON KIM MANAGING DIRECTOR OF SSANGYONG INVESTMENT & SECURITIES CO IT'S BECAUSE THE MINISTRY OF FINANCE DOESN'T WANT TO LOSE CONTROL EVEN IN SECTORS EARMARKED FOR LIBERALIZATION THE FRUITS OF REFORM COULD TAKE YEARS TO RIPEN TAKE FOREIGNEXCHANGE DEALING KOREAN COMPANIES ARE DISCOURAGED FROM HEDGING THEIR CURRENCY EXPOSURE BY A THICKET OF REGULATIONS DESIGNED TO CURB SPECULATION PARTLY AS A RESULT NONFINANCIAL COMPANIES REGULARLY CHALK UP HUGE FOREIGNEXCHANGE LOSSES THE FINANCE MINISTRY HAS PLEDGED TO ESTABLISH A REFORMED CURRENCY MARKET AS PART OF ITS FIVEYEAR PLAN BUT IT WILL BE YEARS BEFORE LOCAL FINANCIERS DEVELOP THE EXPERTISE AND COMPUTER SYSTEMS NEEDED TO ADEQUATELY COVER FOREIGNEXCHANGE RISK HAVING TRADITIONALLY RELIED ON THE GOVERNMENT FOR DIRECTION IF THE MINISTRY WERE TO TAKE THE WRAPS OFF TOMORROW THERE'D BE CHAOS AND THE FORCES OPPOSED TO CHANGE WOULD HAVE A FIELD DAY SAYS A SENIOR OFFICIAL AT CITIBANK NA'S SEOUL BRANCH WHEREAS MANY KOREAN COMPANIES STILL SUCKLE ON GOVERNMENTRATIONED CAPITAL OTHERS ARE FORCEFED TECHNOLOGY IN 1992 EAGER TO LEAPFROG THE JAPANESE IN A FASTGROWING INDUSTRY THE MINISTRY OF COMMUNICATIONS ANNOUNCED THAT DIGITAL SYSTEMS WOULD REPLACE ANALOG TECHNOLOGY AS THE NATIONAL STANDARD FOR NEW TELECOMMUNICATIONS PROJECTS LOCAL MANUFACTURERS LIKE DAEWOO TELECOM LTD AND SAMSUNG ELECTRONICS CO HAD LITTLE SAY IN THE MATTER ALTHOUGH IMPRESSIVE IN THEORY DIGITAL TECHNOLOGY IS UNTESTED IT'S ONE OF THE MORE DIFFICULT TECHNOLOGIES OF THE 20TH CENTURY SAYS DAVID HYTHA DIRECTOR FOR BUSINESS DEVELOPMENT FOR MCCAW CELLULAR COMMUNICATIONS INC IN TOKYO KOREA IS TRYING TO LOSE A FEW POUNDS BY STARTING OUT WITH A TRIATHLON INDUSTRY GIANTS LIKE AMERICAN TELEPHONE & TELEGRAPH CO AND MOTOROLA INC ARE EXPECTED TO HAVE MARKETABLE DIGITAL SYSTEMS WITHIN A YEAR IF SO LOCAL INDUSTRIALISTS SAY THE MINISTRY'S DECISION COULD LEAVE KOREAN FIRMS STRANDED BECAUSE FEW ARE READY TO COMPETE WITH ESTABLISHED TELECOMMUNICATIONS MANUFACTURERS IN THE WEST IN THE DIGITAL MARKET COMMUNICATIONS MINISTRY OFFICIALS WOULD NOT COMMENT AT THE SAME TIME INDUSTRIALISTS SAY RED TAPE HAS IMPEDED THE TRANSFER OF BASIC TECHNOLOGIES LOCAL INDUSTRIES WANT TAKE AEROSPACE ALTHOUGH THE GOVERNMENT HAS TARGETED AIRCRAFT MANUFACTURING AS A STRATEGIC INDUSTRY IT HAS DONE LITTLE TO DISCOURAGE THE FLOCK OF AEROSPACERELATED JOINT VENTURES HERE FROM MIGRATING TO BETTER BUSINESS CLIMES MCDONNELL DOUGLAS CORP'S LOCAL SUBSIDIARY WHICH HAD A LICENSING AGREEMENT WITH KOREA AIR LINES TO BUILD AIRCRAFT PARTS LEFT THE COUNTRY LAST YEAR LITTON KOREA LTD THE 100OWNED LOCAL ARM OF LITTON INDUSTRIES INC OF BEVERLY HILLS CALIF CLOSED ITS DOORS AFTER FAILING TO FIND A LOCAL BUYER LITTON KOREA WHICH HELPED SUPPLY AVIONICS AND GUIDANCE SYSTEMS FOR LOCAL DEFENSE PROJECTS HAD BEEN BARRED FROM COMPETING IN THE COUNTRY'S FERTILE COMMERCIALAVIATION MARKET A YEAR AGO IT BEGAN LOOKING FOR A LOCAL PARTNER WITH WHICH IT COULD GAIN MARKET ACCESS IN RETURN FOR MANAGEMENT EXPERTISE SYSTEMS SOFTWARE AND COMPUTER TECHNOLOGY NO DEAL WAS FORGED BECAUSE NO COMPANY WAS WILLING TO MERGE WITH A PARTNER SHACKLED BY THE KIND OF RESTRICTIONS THAT BOUND LITTON PARK UN SUH AN ENTHUSIASTIC REFORMER AND ASSISTANT MINISTER FOR TRADE AND INDUSTRY AT THE TIME TRIED TO HAVE THE REGULATIONS LIFTED BUT TO NO AVAIL WE NEED MORE DRAMATIC LIBERALIZATION SAYS MR PARK NOW AT THE INDUSTRIAL ADVANCEMENT ADMINISTRATION WHICH HELPS SMALL BUSINESS BUT WE FIRST HAVE TO CHANGE A PHILOSOPHY THAT HAS LASTED HERE FOR 30 YEARS 9403300061 940330 FANS OF ESPERANTO JUST SAY NE' TO FOES OF INVENTED TONGUE THEY SPEAK IT AT HOME FORM CHESS AND NUDIST CLUBS DOES ANYONE UNDERSTAND BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL NEWBURY ANGLIO BONA KATO VENU VENU SAYS HELEN FANTOM A ROSYCHEEKED ACCOUNTANT CALLING TO HER CAT AND VERA THE BONA KATO GOOD CAT OBLIGINGLY VENAS COMES VERA NO DOUBT IS ONE OF THE FEW FELINES IN THE WORLD TO RESPOND TO ESPERANTO BUT THEN THAT'S TO BE EXPECTED IN THE FANTOM HOUSEHOLD ONE OF THE FEW FAMILIES OF NATIVE ESPERANTISTS IN THE WORLD JES IT'S NATURAL TO ADDRESS ANIMALS IN ESPERANTO EXPLAINS IAN FANTOM WHO WITH HIS WIFE TAUGHT THEIR THREE CHILDREN GAVAN AGE 15 ROLF 13 AND PETRA 9 TO SPEAK THE INVENTED INTERNATIONAL LANGUAGE OF ESPERANTO BEFORE THEY LEARNED ENGLISH PEOPLE SAY IT'S NOT A NATURAL LANGUAGE SAYS ROLF BUT IT WAS MADE FOR COMMUNICATION AND THAT'S WHAT WE USE IT FOR THE PROBLEM IS TO COMMUNICATE WITH WHOM FAR FROM SWEEPING THE WORLD AS ITS BACKERS ONCE HOPED ESPERANTO HAS NEVER AND MOST LIKELY WILL NEVER BECOME MORE THAN A QUIRKY FAD FOR INTELLECTUALS AND UTOPIANS THERE ARE ESPERANTO CLUBS FOR EVERYTHING FROM CHESS AND GARDENING TO STAMPCOLLECTING AND NUDISM ESPERANTO CONGRESSES IN CITIES SUCH AS VIENNA AND BEIJING ATTRACT THRONGS EACH YEAR BUT THE WORLD POPULATION OF ESPERANTO SPEAKERS PROBABLY ADDS UP TO A FEW HUNDRED THOUSAND AT MOST NATIVE SPEAKERS SUCH AS THE FANTOMS NUMBER FAR FEWER ESPERANTO SIGHS MILO SIMOJEVIC THE YUGOSLAVIANBORN SECRETARY GENERAL OF THE WORLD ESPERANTO ASSOCIATION BASED IN ROTTERDAM THE NETHERLANDS IS LIKE WORLD PEACE IT'S A NICE IDEAL BUT IT WON'T HAPPEN ANY SOONER THAN OTHER NICE IDEALS FOR ENTHUSIASTS THE REST OF THE WORLD'S NEARTOTAL INDIFFERENCE IS A SOURCE OF CONSTANT FRUSTRATION THEORETICALLY TODAY'S BOOM IN TRAVEL AND TELECOMMUNICATIONS SHOULD FAVOR A UNIVERSAL LANGUAGE FROM CHINA TO CHILE MORE AND MORE PEOPLE ARE COMING INTO CONTACT WITH PEOPLE THEY CAN'T COMMUNICATE WITH IN THE WORLD OF ESPERANTO THE TOWER OF BABEL IS JUST A PIECE OF SURPLUS REAL ESTATE BUT PROSPECTS FOR ESPERANTO SEEM TO BE GROWING BLEAKER NOT BETTER THE FALL OF COMMUNIST REGIMES THAT ONCE GAVE ESPERANTO BACKING BECAUSE OF ITS INTERNATIONALIST OVERTONES HAS REMOVED A MAJOR SUPPORT POLISH RADIO STILL BROADCASTS PROGRAMS IN ESPERANTO AND CHINA SUBSIDIZES AN ESPERANTO MAGAZINE BUT SPONSORSHIP ELSEWHERE IS DWINDLING AS BUDGETTRIMMING BITES MOREOVER NEW TECHNOLOGIES HOLD OUT THE PROSPECT OF AUTOMATIC TRANSLATION AND VOICEINTERPRETATION VIA COMPUTERS ADDING INSULT TO INJURY ESPERANTO IS FACING COMPETITION FROM UPSTART RIVALS SUCH AS GLOSA A SYNTHETIC LANGUAGE BASED ON LATIN AND GREEK WHOSE PROMOTERS CLAIM IT IS EASIER TO LEARN AN ARTIFICIAL IDIOM DREAMED UP OVER 100 YEARS AGO BY A POLISH OPHTHALMOLOGIST LAZAR LUDWIK ZAMENHOF ESPERANTO DOES HAVE ADVANTAGES OVER MOST NATIONAL LANGUAGES ITS GRAMMAR IS SIMPLE AND ITS PRONUNCIATION STRAIGHTFORWARD SUFFIXES SUCH AS O FOR NOUNS A FOR ADJECTIVES AND E FOR ADVERBS SHOW THE FUNCTIONS OF WORDS TAKE THE ROOT BIRD FROM IT YOU CAN GET BIRDO MEANING A BIRD BIRDI TO BE A BIRD BIRDECA BIRDLIKE FLUGI BIRDE TO FLY LIKE A BIRD AND BIRDKANTO BIRDSONG PLUS A HOST OF OTHER WORDS IN THEORY SAYS JORGE CAMACHO WHO TEACHES ESPERANTO CLASSES IN MADRID ANYONE CAN BE THE WORLD'S BEST SPEAKER OF ESPERANTO BUT AS A HODGEPODGE OF ENGLISH FRENCH AND GERMAN WITH A DASH OF LATIN AND GREEK THROWN IN ESPERANTO MAKES SOME LANGUAGE LOVERS' HAIR STAND ON END WRITTEN IT LOOKS LIKE A CROSS BETWEEN ROMANIAN AND BULGARIAN SPOKEN IT SOUNDS A BIT LIKE SPANISH WITH SOME ODD ENGLISH AND OTHER LANGUAGES I HATE IT FUMES WIM MEEUWS THE MULTILINGUAL PROPRIETOR OF A BOOKSHOP IN OXFORD WHO REFUSES TO STOCK ESPERANTO BOOKS NONSENSE SAY ESPERANTISTS IT'S A BEAUTIFUL LANGUAGE INSISTS TOON WITKOM A DUTCH SOFTWARE ENGINEER WHO LEARNED ESPERANTO A FEW YEARS AGO WHEN HE WAS WORKING ON A PROJECT TO USE IT IN COMPUTERIZED TRANSLATION BUT EVEN HE CONCEDES THAT YOU CAN EASILY LIVE WITHOUT EVER COMING INTO CONTACT WITH ESPERANTO DON'T TELL THAT TO THE FANTOMS AT THE DOOR OF THEIR REDBRICK HOME HERE IN SOUTHERN ANGLIO ESPERANTO FOR ENGLAND VISITORS ARE GREETED BY A WOODEN PLAQUE BEARING THE ESPERANTO SYMBOL A GREEN STAR TABLES SHELVES AND FLOORS IN THE LIVING ROOM ARE CLUTTERED WITH BOOKS GEORGE ORWELL'S BESTO FARMO ANIMAL FARM AGATHA CHRISTIE'S MURDO EN LA ORIENTA KESPRESO MURDER ON THE ORIENT EXPRESS AND HANS CHRISTIAN ANDERSEN'S LA MARVIRINETO THE LITTLE MERMAID ANOTHER ROOM HOUSES TOMES THAT ONCE BELONGED TO MRS FANTOM'S DUTCH FATHER AND ENGLISH MOTHER ESPERANTO ENTHUSIASTS WHO MET AT AN ESPERANTO CONGRESS IN THE LATE 1930S AND TAUGHT THEIR CHILDREN THE LANGUAGE IN SECRECY IN WARTIME AMSTERDAM MR FANTOM FIRST LEARNED THE LANGUAGE AS A TEENAGER HEEDLESS OF THE WORLD'S LACK OF INTEREST THE FANTOMS SPEAK ENGLISH AT WORK OR WITH FRIENDS BUT OFTEN LAPSE INTO ESPERANTO AT HOME WITH EACH OTHER THEIR SON GAVAN'S FIRST WORD WHEN HE WAS NEARLY ONE YEAR OLD WAS NE ESPERANTO FOR NO AS YOUNGSTERS THE FANTOM CHILDREN SOMETIMES HAD DIFFICULTY WITH ENGLISH ROLF RECALLS HAVING TO EXPLAIN TO PETRA IN ESPERANTO THINGS THAT OTHER PEOPLE SUCH AS THEIR PATERNAL GRANDPARENTS SAID TO HER IN ENGLISH THEY ALSO SUFFERED OCCASIONAL RIBBING FROM SCHOOLMATES PEOPLE SOMETIMES ASK HOW DO YOU SAY YOU ARE AN IDIOT' AND I TELL THEM THE ESPERANTO WORDS FOR I AM AN IDIOT' SAYS ROLF IN ARGUMENTS OVER WHICH LANGUAGE IS BETTER ENGLISH OR ESPERANTO HE ADDS I ALWAYS SEEM TO WIN ESPERANTO IS EASY TO LEARN AND IT'S NEUTRAL IT HASN'T GOT A COUNTRY SO PEOPLE CAN'T HATE THE COUNTRY AND ESPERANTO SPEAKERS CERTAINLY AREN'T GOING TO INVADE ANYONE ELSE'S COUNTRY THE FANTOMS' FAMILY VACATIONS REVOLVE AROUND THE LANGUAGE IN THE PAST YEAR THEY HAVE VISITED GERMANY FRANCE AND SPAIN STAYING WITH FELLOW ESPERANTO SPEAKERS AND ATTENDING LAST SUMMER'S ANNUAL ESPERANTO CONGRESS IN VALENCIA ON WEEKENDS THEY TAKE PART IN MUSICAL GATHERINGS WITH OTHER ESPERANTIST FAMILIES APART FROM ESPERANTO'S USEFULNESS FOR INTERNATIONAL COMMUNICATION MR FANTOM A BALDING BESPECTACLED COMPUTER SCIENTIST STRESSES ITS EDUCATIONAL VALUE CHILDREN WHO LEARN ESPERANTO FIRST FIND IT EASIER TO PICK UP OTHER LANGUAGES HE SAYS AND ESPERANTO'S LOGICAL SYSTEM OF COUNTING HE CLAIMS IS HELPFUL FOR LEARNING MATH ELEVEN FOR EXAMPLE IS DEK UNO OR TEN ONE 20 IS DUDEK OR TWOTEN AND 22 IS DUDEK DU OR TWOTEN TWO SO WHAT IS IN STORE FOR THE LANGUAGE IF THE FANTOM CHILDREN ONE DAY HAVE THEIR OWN CHILDREN WILL THEY TEACH THEM ESPERANTO MAKING THEM THIRDGENERATION NATIVE ESPERANTISTS IT'S UP TO THEM SAYS IAN FANTOM WE'RE GIVING THEM THE EDUCATIONAL BASE THEY WILL HAVE TO DECIDE FOR THEMSELVES WHETHER TO USE IT OR NOT AS THEY SEE FIT SOLE LA TEMPO MONTROS ONLY TIME WILL TELL 9403300059 940330 SMALL STOCK FOCUS STOCKS FALL SHARPLY FOR FOURTH SESSION NASDAQ COMPOSITE HITS A LOW FOR YEAR BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK STRUGGLING SMALLCOMPANY STOCKS FELL SHARPLY FOR A FOURTH STRAIGHT DAY WITH ONE KEY INDEX HITTING ITS LOWEST CLOSING LEVEL OF 1994 SMALLSTOCK PRICES GAVE BACK EVERYTHING THEY HAD GAINED THIS YEAR DESPITE THE FACT THAT BOTH THE RUSSELL 2000 INDEX AND THE NASDAQ COMPOSITE INDEX SET RECORD HIGHS JUST A WEEK AND A HALF AGO THE RUSSELL 2000 INDEX FELL TO 25704 A LOSS OF 547 OR 208 THE BAROMETER STARTED THE YEAR AT 25859 ON THE NASDAQ STOCK MARKET WIDESPREAD WEAKNESS AND A CONTINUED ASSAULT ON THE TECHNOLOGY SECTOR RIPPED 1721 OR 223 FROM THE NASDAQ COMPOSITE INDEX SENDING IT TO ITS LOWEST CLOSING LEVEL THIS YEAR 75529 THE INDEX BEGAN 1994 AT 77680 SMALLER ISSUES ALONG WITH THE REST OF THE MARKET WERE DOWN SHARPLY ALL DAY RECEIVING ANOTHER JOLT MINUTES BEFORE THE CLOSE WHEN THE UPTICK RULE WAS TRIGGERED ON THE BIG BOARD AFTER THE DOW JONES INDUSTRIAL AVERAGE FELL MORE THAN 50 POINTS THE RULE RESTRICTS PROGRAM TRADING THE DOW INDUSTRIALS AVERAGE ENDED 6333 LOWER AT 369902 AND HAS LOST 170 POINTS IN THE PAST FOUR TRADING SESSIONS OBSERVERS ATTRIBUTE THE RECENT BLOODLETTING IN THE SMALLCAP GROUP PRIMARILY TO OVERALL MARKET DECLINES CAUSED BY RISING INTEREST RATES BUT THEY ADD THAT SMALL STOCKS WERE PARTICULARLY SUSCEPTIBLE TO A STEEP CORRECTION BECAUSE THEY WERE DEEPLY OVERBOUGHT DECLINING ISSUES SURGED PAST NASDAQ ADVANCERS 2323 TO 888 ON NASDAQ NATIONAL MARKET VOLUME OF 266175400 SHARES AND TOTAL VOLUME OF 309556000 ON MONDAY NATIONAL MARKET VOLUME WAS 267522800 SHARES WHILE OVERALL VOLUME WAS 300924000 IN THE SMALLCAP ARENA PHYSICIAN COMPUTER NETWORK LAURENCE HARBOR NJ DROPPED 3/4 TO 4 WEITEK A SUNNYVALE CALIF INTEGRATED CIRCUITS CONCERN SLID 1 TO 6 7/8 AND ASANTE TECHNOLOGIES A SAN JOSE CALIF DATA NETWORKING FIRM SAGGED 1 1/4 TO 9 MEANWHILE AMERICA ONLINE CONTINUED ITS ROLLERCOASTER RIDE FALLING 4 1/2 TO 77 THE WALL STREET JOURNAL REPORTED THAT NEW COMPETITION LOOMS FOR THE VIENNA VA COMPANY NEXT YEAR IN EARNINGS NEWS MICROGRAFX RICHARDSON TEXAS SLID 1 1/2 TO 6 7/8 AFTER THE CLOSE MONDAY THE COMPANY SAID IT EXPECTS A FISCAL FOURTHQUARTER AND FISCAL 1994 LOSS DUE TO LOWERTHANANTICIPATED REVENUE FROM ITS PROFESSIONAL GRAPHICS PRODUCTS THE SOFTWARE COMPANY POSTED A 1993 FISCAL FOURTHQUARTER LOSS OF 51 CENTS A SHARE ON CHARGES AND A LOSS OF 34 CENTS FOR THE YEAR ALSO ON CHARGES SIMILARLY COMVERSE TECHNOLOGY'S DISAPPOINTING 1994 EARNINGS OUTLOOK LOPPED 4 7/8 FROM ITS STOCK PRICE CAUSING IT TO END AT 9 1/8 THE WOODBURY NY COMPUTER SYSTEMS COMPANY SAID SIGNIFICANT INCREASES IN PLANNED INVESTMENT OPERATIONS AND A SLOWING IN LARGE GOVERNMENT SYSTEMS DIVISION ORDERS WILL LIKELY CAUSE 1994 NET OPERATING RESULTS TO DECLINE FROM THE 1993 LEVELS FOR 1993 COMVERSE EARNED 65 CENTS A SHARE A POOR FISCAL SECONDQUARTER EARNINGS OUTLOOK SENT GENEVA STEEL DOWN 2 TO 15 ON THE BIG BOARD THE VINEYARD UTAH COMPANY SAID LATE YESTERDAY THAT IT EXPECTS TO REPORT A LOSS OF 14 MILLION TO 15 MILLION FOR THE PERIOD ON 10 MILLION OF EXTRAORDINARY FINANCING COSTS IN THE SAME QUARTER LAST YEAR GENEVA STEEL REPORTED A LOSS OF 46 MILLION EMPI SKIDDED 4 TO 10 7/8 LATE MONDAY THE ST PAUL MINN DEVELOPER OF BIOMEDICAL DEVICES SAID ITS FIRSTQUARTER NET INCOME AND SALES WILL FALL BELOW ANALYSTS' EXPECTATIONS OF 29 CENTS TO 30 CENTS A SHARE ON SALES OF 177 MILLION TO 183 MILLION AMERICAN MEDICAL ELECTRONICS PLUNGED 3 3/4 TO 13 THE RICHARDSON TEXAS MEDICAL DEVICE COMPANY SAID ITS BOARD CONTINUES TO SEEK THE RESIGNATION OF LONGTIME PRESIDENT AND CHIEF EXECUTIVE JOSEPH MOOIBROEK DUE TO THE NECESSITY FOR A CHANGE OF LEADERSHIP MR MOOIBROEK REFUSED TO RESIGN BUT REQUESTED THAT THE COMPANY'S FOUR OUTSIDE DIRECTORS SUBMIT RESIGNATIONS WHICH THEY DECLINED TO DO NEW ISSUES MANAGED TO DUCK THE BROADBASED LOSSES FIRST ALERT JUMPED TO 18 3/4 FROM ITS INITIAL OFFERING PRICE OF 17 THE AURORA ILL MAKER OF HOME SMOKE DETECTORS AND OTHER SAFETY PRODUCTS SAID PROCEEDS WILL GO TOWARD REPAYING SUBORDINATED DEBT AND REDUCING LONGTERM BANK DEBT FIRST ALERT WAS THE NASDAQ'S MOST ACTIVE ISSUE WITH 39 MILLION SHARES TRADED APPLIED DIGITAL ACCESS CLIMBED TO 15 1/4 FROM ITS OFFERING PRICE OF 12 YESTERDAY MORNING THE SAN DIEGO MAKER OF NETWORK TEST AND PERFORMANCEMONITORING SYSTEMS PLANS TO USE PROCEEDS FOR GENERAL CORPORATE PURPOSES PAULSON GAMING LAS VEGAS ROSE TO 12 1/4 FROM ITS OFFERING PRICE OF 11 1/4 A SHARE PROCEEDS WILL GO TO EXPAND OPERATIONS UPGRADE MANAGEMENT INFORMATION SYSTEMS REPAY BANK DEBT AND RETIRE INDEBTEDNESS TO FORMER HOLDERS AND FOR WORKING CAPITAL SILVER KING COMMUNICATIONS ST PETERSBURG FLA GAINED 1 1/4 TO 11 3/4 THE WALL STREET JOURNAL REPORTED THAT CABLEINDUSTRY EXECUTIVES SAY TURNER BROADCASTING SYSTEM MIGHT BE INTERESTED IN 12 UHF STATIONS OPERATED AS HOME SHOPPING NETWORK AFFILIATES BY SILVER KING WHICH WAS RECENTLY SPUN OFF BY HOME SHOPPING THE RUSSELL AND NASDAQ COMPOSITE WERE QUITE EXTENDED AND THEY HAD MORE TO GIVE UP SAID ANTHONY O'BRYAN A MARKET ANALYST AT AG EDWARDS & SONS INC ALSO THE NASDAQ COMPOSITE IS HEAVILY WEIGHTED WITH BIGCAP TECH ISSUES WHICH HAVE BEEN HAMMERED PRETTY WELL LATELY MR O'BRYAN SAID SMALLER STOCKS AND EQUITIES IN GENERAL ARE DUE FOR A BOUNCE AFTER THE HUGE LOSSES ACCRUED IN THE PAST FEW DAYS BUT THAT WON'T HAPPEN THIS WEEK WITHOUT HELP FROM BONDS BUT OTHER MARKET WATCHERS ARE MORE DUBIOUS THE NASDAQ AND THE RUSSELL HAD BEEN OUTPERFORMING THE STANDARD & POOR'S 500STOCK INDEX AND THE DOW INDUSTRIALS BECAUSE THEY WOULD HOLD UP BETTER AND THEN RALLY SAID GREG KUHN WHO HEADS KUHN ASSET MANAGEMENT WHAT WAS ALARMING HOWEVER WAS THAT TECHNOLOGY ISSUES NEARLY SINGLEHANDEDLY LED THE ADVANCE MR KUHN ADDED NOW THAT SELLERS HAVE BRUTALIZED TECH STOCKS THERE IS VERY LITTLE OTHER LEADERSHIP TO MAINTAIN THE HIGHS MR KUHN SEES WARNING SIGNALS FROM THE POOR BREADTH AND RISING RATES HE RECOMMENDS SMALLCAP INVESTORS RAISE THEIR CASH LEVELS TO 100 BASED ON A BELIEF THAT THE CORRECTION IS FAR FROM OVER EARLIER DEAN WITTER REYNOLDS INC AND SMITH BARNEY SHEARSON INC RECOMMENDED THAT MARKET PLAYERS CUT THEIR STOCK AND BOND EXPOSURE AND INCREASE THEIR CASH HOLDINGS 9403300058 940330 TEXAS JOURNAL WINNERS & LOSERS SAN ANTONIO THE ALAMO CITY WAS SELECTED TO HOST THE NAFTARELATED NORTH AMERICAN DEVELOPMENT BANK FUNGUS LOVERS A FORT WORTH COMPANY PROPOSES TO TURN THE ABANDONED SUPERCONDUCTING SUPERCOLLIDER TUNNEL INTO A GIANT MUSHROOM FARM METROPLEX DALLAS AND FORT WORTH LOCATIONS MADE THE SHORT LIST OF POSSIBLE SITES FOR TACO BELL'S NEW CORPORATE HEADQUARTERS BIOSPHERIANS TWO MEMBERS OF THE TEAM THAT LIVED FOR TWO YEARS ENCLOSED IN ED BASS'S ARIZONA ECOLOGY PROJECT FILED A LAWSUIT SEEKING OVERTIME PAY AND BACK WAGES SICK TEXANS ROUGHLY 40 OF TEXAS MEDICAL STUDENTS LEAVE THE STATE FOR RESIDENCY PROGRAMS LEADING TO A SHORTAGE OF DOCTORS 9403300057 940330 INTERNATIONAL BERLUSCONI AS HEAD OF THE NEW ITALY' MAY FACE OLD PROBLEM RIFTS IN ALLIANCE BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN MEDIA MOGUL SILVIO BERLUSCONI GREETED THE WORLD YESTERDAY AS THE FACE OF THE NEW ITALY BUT THE COMING DAYS IN WHICH MR BERLUSCONI NEGOTIATES WITH HIS TWO RIGHTWING PARTY ALLIES TO FORM A GOVERNMENT MAY SHOW WHETHER THE OLD ITALY OF STRIFE AND FACTIONALISM HAS ACTUALLY BEEN VANQUISHED IN ONE OF EUROPE'S MOST STUNNING SUCCESS STORIES MR BERLUSCONI'S THREEMONTHOLD FORZA ITALIA EMERGED AS THE LARGEST POLITICAL PARTY IN THE COUNTRY FOLLOWING ITALY'S LANDMARK PARLIAMENTARY ELECTIONS SUNDAY AND MONDAY TOGETHER WITH ITS FREEDOM ALLIANCE PARTNERS THE FEDERALIST NORTHERN LEAGUE AND THE NEOFASCIST NATIONAL ALLIANCE MR BERLUSCONI'S MOVEMENT CLAIMED AN ABSOLUTE MAJORITY OF SEATS IN THE LOWER HOUSE OF PARLIAMENT AND IS THREE SEATS SHORT OF A MAJORITY IN THE UPPER HOUSE IN RECORD TIME MY POLITICAL FORCE WAS ABLE TO BECOME THE FIRST POLITICAL FORCE IN ITALY MR BERLUSCONI SAID YESTERDAY IN A REMARKABLE TRANSFORMATION FROM BUSINESS TYCOON TO DEFT POLITICIAN HE PROMISED TO GUARANTEE THE VALUES OF FREEDOM FAMILY BUSINESS FREE MARKETS PROFITS AND COMPETITION BUT ALSO SOLIDARITY AND VALUES OF THE CHRISTIAN TRADITION BUT NOW THE HARD PART BEGINS ASSUMING AS MOST EXPECT THAT PRESIDENT OSCAR LUIGI SCALFARO TAPS MR BERLUSCONI TO FORM THE NEXT GOVERNMENT HIS FIRST OBSTACLE WILL BE SMOOTHING OVER HARSH DIFFERENCES BETWEEN HIS TWO ALLIES IN CAMPAIGN RHETORIC TYPICAL OF ITALIAN WHEELING AND DEALING THE NORTHERN LEAGUE'S LEADER UMBERTO BOSSI HAD CALLED MR BERLUSCONI A RECYCLED PRODUCT OF THE OUTGOING FIVEPARTY REGIME IN AN EFFORT TO EXTRACT CONCESSIONS MR BOSSI VOWED THE LEAGUE WOULD NOT ENTER A GOVERNMENT WITH MR BERLUSCONI AS PRIME MINISTER AND INSTEAD PROPOSED LEAGUE LEADER ROBERTO MARONI BUT BY LAST NIGHT MR BOSSI TEMPERED HIS GRUFF POLITICAL RHETORIC AND SIGNALED A WILLINGNESS TO BEGIN NEGOTIATIONS WITH MR BERLUSCONI TODAY FOR THE FIRST TIME HE ALSO AGREED TO NEGOTIATE WITH THE NATIONAL ALLIANCE WE SHOULD CREATE A GOVERNMENT CONSIDERING THE LEAGUE AS A REAL POLITICAL FORCE MR BOSSI SAID STILL THE GRUFF TALK AND UNCERTAINTY DAMPED THE EARLY EUPHORIA THAT THE ELECTION HAD DELIVERED ITALY ITS FIRST CLEAR AND THEREFORE STABLE MAJORITY SINCE FASCISM IN ADDITION IN A NATION ROCKED BY RECENT REPEATED POLITICAL SCANDALS THERE ARE PERSISTENT WORRIES ABOUT WHETHER MR BERLUSCONI WILL BE ABLE TO SEPARATE HIS PRIVATE BUSINESS INTERESTS RANGING FROM TELEVISION AND REAL ESTATE TO SOCCER AND SUPERMARKETS FROM HIS PUBLIC DUTIES AS A SIGNAL OF CAUTION THE MILAN STOCK EXCHANGE AFTER A 38 SURGE ON MONDAY FELL BY 19 YESTERDAY INSTABILITY FINANCIAL MARKETS WARN IS EXACTLY WHAT ITALY HAS BEEN TRYING TO OVERCOME WITH THE INTRODUCTION OF ITS NEW POLITICAL SYSTEM MOREOVER THE CURRENT GOVERNMENT STRUCTURE WHICH MAKES FOR A WEAK PRIME MINISTER AND DUPLICATES MANY GOVERNMENT DUTIES IN BOTH CHAMBERS OF PARLIAMENT IS STILL A RELIC OF THE OLD ITALY CONSTITUTIONAL EXPERTS SAY INSTITUTIONAL REFORM WILL BE ESSENTIAL BEFORE ITALY CAN EMERGE AS AN EFFICIENT WORKABLE DEMOCRACY STILL THE CLEAR MANDATE FOR CHANGE VOICED BY ITALIANS SHOULD NOT BE OBSCURED BY THE POTENTIAL UNCERTAINTIES POLITICAL OBSERVERS SAY THE CHANGE HAS BEEN RATHER RADICAL AND DRASTIC SAYS GIOVANNI BUONVICINI PRESIDENT OF ROME THINK TANK ISTITUTO AFFARI INTERNAZIONALI ITALIANS GAVE A CLEAR INDICATION THAT THEY WANT TO GIVE UP THE OLD CENTRALIZED INEFFICIENT LAZY WAY OF GOVERNING THOUGH THE THREE PARTIES' PLATFORMS DIFFER WITHIN THE FREEDOM ALLIANCE THE OVERALL MESSAGE OF THE RIGHT'S CAMPAIGN WAS ONE OF EFFICIENT PUBLIC SERVICES LOWER TAXES AND AN END TO GOVERNMENT RED TAPE VOTERS INDICATED THAT THEY PREFER THAT THE STATE PROVIDE ONLY DIRECTION AND CONTROL RATHER THAN MANAGEMENT LIBERATING THE ECONOMY FROM THE OBSTACLES THAT PUT A BRAKE ON IT SAYS THE STATE INDUSTRIALISTS' ASSOCIATION CONFINDUSTRIA THE DIFFERENCES BETWEEN THE LEAGUE AND THE NATIONAL ALLIANCE WHICH WERE GLOSSED OVER DURING THE CAMPAIGN ARE NOW STRIKINGLY APPARENT PARTICULARLY THE DEGREE TO WHICH THE GOVERNMENT SHOULD BE DECENTRALIZED IN ITALY THE NATIONAL ALLIANCE CREATED FROM THE FORMER FASCIST PARTY IS NATIONALIST IN NATURE AND AGAINST DECENTRALIZATION OF TAX COLLECTION WHICH IS THE PRIMARY PLATFORM OF THE LEAGUE THE NATIONAL ALLIANCE ALSO FAVORS PRESERVING SOME NATIONAL OWNERSHIP OF BUSINESS IN DIRECT CONTRAST WITH THE AMBITIOUS PRIVATIZATION PLANS OF MR BERLUSCONI'S FORZA ITALIA TO WIN OVER MR BOSSI THE OTHER TWO ALLIES MAY BE FORCED TO CONCEDE TO HIS DEMANDS ESPECIALLY ON REGIONAL FEDERALISM STILL SOME THINK THE LURE OF GOVERNING A FIRST FOR ITALY'S NEW RIGHT WILL BE SO STRONG THAT THE FACTIONS WILL PUT ASIDE THEIR BICKERING THERE WILL BE NO DIVISIONS ON THE RIGHT DECLARED ALESSANDRA MUSSOLINI NEWLY REELECTED PARLIAMENTARY MEMBER FOR THE NATIONAL ALLIANCE AND GRANDDAUGHTER OF FASCIST DICTATOR BENITO MUSSOLINI THE NUMBERS MUST PUSH EVEN BOSSI TO REFLECT ON PUTTING ASIDE DIFFERENCES TO FORM A GOOD GOVERNMENT VENTURES PATRICK MCCARTHY POLITICAL SCIENCE PROFESSOR AT JOHNS HOPKINS CENTER IN BOLOGNA IF BOSSI BRINGS DOWN THE GOVERNMENT BY REFUSING TO JOIN HE'LL WIPE OUT HIS WHOLE ELECTORAL BASE AND HE'S NOT GOING TO DO THAT 9403300056 940330 GRUMMAN STOCK FALLS 23 REFLECTING UNCERTAINTY OF HIGHER BIDS IN AUCTION BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL GRUMMAN CORP'S STOCK FELL 23 REFLECTING TRADERS' UNCERTAINTY OVER WHETHER RIVALS MARTIN MARIETTA CORP AND NORTHROP CORP WOULD SUBMIT HIGHER OFFERS UNDER AUCTION RULES SET BY GRUMMAN IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE GRUMMAN SHARES FELL 150 TO CLOSE AT 63375 THE DECLINE CAME IN A STOCK MARKET THAT WAS ALSO SHARPLY OFF WITH THE DOW JONES INDUSTRIAL AVERAGE TUMBLING 168 GRUMMAN'S STOCK PRICE STILL TOPPED NORTHROP'S CURRENT OFFER OF 60 A SHARE OR A TOTAL OF 204 BILLION BUT WALL STREET APPEARED CONCERNED ABOUT HOW THE AUCTION WOULD WORKAND ESPECIALLY ABOUT NORTHROP'S SHARP CRITICISM OF THE RULES THE BETHPAGE NY DEFENSEELECTRONICS AND TACTICALAIRCRAFT PRODUCER HAD ESTABLISHED THE OFFER FROM LOS ANGELESBASED NORTHROP EXCEEDS BY 5 A SHARE THE 193 BILLION THAT MARTIN MARIETTA AGREED TO PAY IN AN ACQUISITION PACT ANNOUNCED MARCH 7 SOME TRADERS FIGURED THAT NORTHROP CHAIRMAN KENT KRESA'S ATTACK ON GRUMMAN'S BIDDING RULES MEANT NORTHROP WOULDN'T SUBMIT ANOTHER BID BEFORE THE DEADLINE OF 5 PM EST TOMORROW AND MIGHT INSTEAD CHALLENGE A SALE TO MARTIN MARIETTA IN COURT OTHER TRADERS DISMISSED THE EXISTENCE OF AN AUCTION ALTOGETHER NOTING AS ONE SAID THAT INVESTORS WILL TENDER TO THE HIGHEST OFFER EVEN IF IT COMES AFTER THE OFFICIAL DEADLINE GRUMMAN PLANS TO ANNOUNCE A WINNER MONDAY AT 9 AM EDT IN INVITING FINAL OFFERS FROM NORTHROP AND MARTIN MARIETTA OR ANY OTHER PARTIES GRUMMAN SAID A PROLONGED BIDDING WAR PRESENTED THE DANGER OF DISRUPTION TO THE COMPANY'S BUSINESS AND OVERALL UNCERTAINTY AMONG THE COMPANY'S CONSTITUENCIES ABOUT GRUMMAN'S FUTURE NORTHROP MAKER OF THE B2 BOMBER AND COMPONENTS FOR OTHER AEROSPACE PRODUCTS REITERATED THAT IT IS KEEPING OUR OPTIONS OPEN BUT INVESTORS TOOK NOTE OF THE VEHEMENCE IN MR KRESA'S RESPONSE TO GRUMMAN'S PLAN HE SAID GRUMMAN WAS PERPETUATING AN UNLEVEL PLAYING FIELD ADVANTAGEOUS TO MARTIN MARIETTA'S BID IN WHAT SOME OBSERVERS SAW AS ESTABLISHING GROUNDS FOR LEGAL ACTION HE SAID NOT LETTING THE SUITORS BATTLE IT OUT PAST TOMORROW WOULD PREMATURELY CUT OFF POTENTIAL BIDDING AND THUS HURT GRUMMAN SHAREHOLDERS GRUMMAN STOCK TRADED AROUND 40 A SHARE PRIOR TO THE MARTIN MARIETTA AGREEMENT BUT SURGED 1425 THE DAY OF THE AGREEMENT AND MORE THAN 8 WHEN NORTHROP MADE ITS HOSTILE OFFER ON MARCH 10 MARTIN MARIETTA A BETHESDA MD CONCERN WHOSE ACQUISITIONS HAVE MADE IT ONE OF THE NATION'S LARGEST DEFENSE CONTRACTORS REITERATED THAT IT IS REVIEWING GRUMMAN'S RULES ONE PERSON FAMILIAR WITH THE BIDDING SUGGESTED THAT NORTHROP'S OPPOSITION TO THE AUCTION RULES INDICATED SUSPICION THAT MARTIN MARIETTA WOULD GET FAVORABLE TREATMENT AFTER THE DEADLINE GRUMMAN HAS SAID THE LONG WEEKEND WOULD BE USED FOR COMPLETING AN ACQUISITION AGREEMENT BUT NORTHROP HAVING HAD ITS YEARLONG ACQUISITION TALKS WITH GRUMMAN ABRUPTLY BROKEN OFF JUST BEFORE THE MARTIN MARIETTA AGREEMENT WAS ANNOUNCED FEARS A SITUATION WHERE IT PLAYS BY A SET OF RULES AND THE OTHER SIDE GETS A WINK A NOD OR A PHONE CALL THIS PERSON SAID GREG STEINMETZ CONTRIBUTED TO THIS ARTICLE 9403300055 940330 WHAT'S NEWS WORLDWIDE MEXICO'S RULING PARTY NAMED ERNESTO ZEDILLO ITS CANDIDATE FOR PRESIDENT THE USEDUCATED ECONOMIST AND ALLY OF PRESIDENT SALINAS BECOMES THE INSTANT FAVORITE FOR THE AUGUST ELECTIONS THE RULING PARTY HASN'T LOST A PRESIDENTIAL ELECTION IN NEARLY 70 YEARS AND ZEDILLO WILL BENEFIT FROM SYMPATHY VOTES AFTER LAST WEEK'S ASSASSINATION OF THE PARTY'S ORIGINAL CANDIDATE BUT OPPOSITION PARTIES SAY HE CAN BE BEATEN BECAUSE HE LACKS NAME RECOGNITION AND POLITICAL PRESENCE MEXICO'S POLITICAL CRISIS APPEARS TO BE SLOWING ECONOMIC GROWTH SOME ECONMISTS SAY THEY FORESEE SLOWER FIRSTQUARTER GDP GROWTH THAN EARLIER PREDICTED SOUTH AFRICA TOOK STEPS TOWARD DECLARING A STATE OF EMERGENCY IN NATAL THE GROUNDWORK WAS LAID IN PRETORIA FOR THE MOVE WHICH COULD INCLUDE SENDING TROOPS TO THE PREDOMINANTLY ZULU AREA FOLLOWING CLASHES DURING A ZULU MARCH MONDAY THAT KILLED 53 PEOPLE IN AND AROUND JOHANNESBURG GUNMEN FIRED YESTERDAY ON THE CITY'S AFRICAN NATIONAL CONGRESS HEADQUARTERS WHERE NINE ZULU PROTESTERS WERE KILLED BY SECURITY GUARDS IN THE EARLIER CLASH TALKS BETWEEN DE KLERK MANDELA AND ZULU LEADER BUTHELEZI ARE SET FOR NEXT WEEK BUTHELEZI SAID HIS PARTY WILL STRUGGLE TO THE FINISH WITH THE ANC ISRAELI AND PLO NEGOTIATORS MET IN CAIRO TO TRY TO REVIVE STALLED PEACE TALKS AS VIOLENT CLASHES ERUPTED ACROSS THE WEST BANK AND GAZA STRIP ISRAELI TROOPS KILLED ONE PALESTINIAN AND INJURED 50 OTHERS IN PROTESTS OVER THE KILLING MONDAY OF SIX MEMBERS OF ARAFAT'S PLO FACTION THE PLO IS SEEKING SECURITY GUARANTEES FOR PALESTINIANS AT THE TALKS THE WHITE HOUSE RELEASED RECORDS OF HILLARY RODHAM CLINTON'S COMMODITIES TRADING ON WHICH SHE MADE 98000 IN THE 1970S IT SAID THAT MRS CLINTON'S 1000 INVESTMENT WAS HER OWN MONEY THAT SHE DIDN'T RELY SOLELY ON A TYSON EXECUTIVE FOR ADVICE AND THAT SHE WAS UNAWARE OF A BROKER'S PROBLEMS WITH REGULATORS ITALY'S BERLUSCONI FACES DIFFICULTIES IN FORMING A GOVERNMENT DESPITE A LANDMARK ELECTION VICTORY BY HIS RIGHTWING COALITION ONE PARTNER IN HIS COALITION IS THREATENING TO BOLT AND QUESTIONS ARE BEING RAISED ABOUT WHETHER THE TYCOON WILL BE ABLE TO KEEP HIS PRIVATE BUSINESS INTERESTS SEPARATE FROM HIS PUBLIC DUTIES BOSNIA'S MUSLIMLED PARLIAMENT PUT OFF UNTIL TODAY A VOTE ON A MUSLIMCROAT FEDERATION AFTER DEMANDING THE REMOVAL OF A CROAT HARDLINER ACCUSED OF TAKING PART IN ETHNIC CLEANSING OF MUSLIMS FROM AN ASSEMBLY CONSIDERING THE ISSUE SEPARATELY CROATS AND SERBS SIGNED A CEASEFIRE ACCORD TO END FIGHTING IN THE KRAJINA REGION GREECE REJECTED A DEMAND FROM THE EUROPEAN UNION THAT IT LIFT A EMBARGO AND OPEN A PORT TO MACEDONIA TRADE MEANWHILE A US SPECIAL ENVOY ARRIVED IN ATHENS FROM SKOPJE TO TRY TO MEDIATE THE DISPUTE A US JUDGE IN IDAHO RULED FEDERAL AGENCIES RESPONSIBLE FOR RUNNING DAMS AND RESERVOIRS ON NORTHWEST RIVERS BROKE THE LAW BY PUSHING THROUGH AN OPERATING PLAN THEY ADMITTED WOULD KILL MILLIONS OF SALMON THE DECISION IS A VICTORY FOR ENVIRONMENTALISTS IN A FIGHT TO HALT THE COLLAPSE OF SALMON POPULATIONS IN THE REGION THE ADMINISTRATION PROPOSED MOVES TO STREAMLINE THE OVERLOADED SYSTEM FOR HANDLING APPLICATIONS BY FOREIGNERS SEEKING ASYLUM IN THE US THE CHANGES WOULD INCLUDE IMPOSING A 130 FEE ON APPLICANTS EXPEDITING HEARINGS AND DENYING ASYLUM SEEKERS PERMISSION TO WORK FOR FIVE MONTHS AFTER THEY APPLY SOUTH KOREA'S PRESIDENT LEFT BEIJING WITHOUT ANY ASSURANCES THAT CHINA WILL HELP PRESS NORTH KOREA TO END ITS REFUSAL TO ALLOW INSPECTIONS OF SUSPECTED NUCLEAR ARMS SITES KIM YOUNG SAM DESPITE RECENT RHETORIC THAT HIS COUNTRY'S PATIENCE WAS RUNNING OUT TOLD A NEWS CONFERENCE HE WOULD USE DIALOGUE AND PERSUASION TO TRY TO END THE DISPUTE GUATEMALA SIGNED ACCORDS WITH LEFTIST REBELS AIMED AT ENDING MORE THAN THREE DECADES OF CIVIL WAR THE AGREEMENTS WHICH SET UP A UNLED PROCESS TO MONITOR HUMANRIGHTS ABUSES WILL NOT END FIGHTING BUT A CEASEFIRE IS EXPECTED LATER THIS YEAR A POWERFUL EXPLOSION IN INDIA KILLED A GENERAL AND 14 SOLDIERS AT AN ARMY WEAPONS DEPOT IN KASHMIR THE GOVERNMENT RULED OUT SABOTAGE BUT A PERSON CLAIMING TO REPRESENT A MUSLIM SEPARATIST GROUP TELEPHONED A NEWS ORGANIZATION TO CLAIM RESPONSIBILITY 9403300054 940330 INTERNATIONAL WORLD WIRE COMPILED BY CATHERINE BOLGAR THIEVES SELLING OFF RUSSIA'S NATURAL WEALTH ARE BETTER ORGANIZED THAN EVER RUNNING SOPHISTICATED PRODUCTION AND EXPORT NETWORKS LEGAL PROCEEDINGS WERE STARTED AGAINST MORE THAN 8000 PEOPLE ACCUSED OF SMUGGLING LAST YEAR 5000 OF THEM WERE WORKERS AT STATE ENTERPRISES SUCH AS MINES SMELTERS SHIPYARDS AND REFINERIES POLICE AND CUSTOMS OFFICIALS SAID BESIDES EXPORTING STOLEN MATERIALS SMUGGLERS ALSO SELL MYSTERIOUS ITEMS SUCH AS RED MERCURY SUPPOSEDLY A RADIOACTIVE MATERIAL USED IN NUCLEAR ARMS THE INTERIOR MINISTRY SAID 9477 CASES OF ILLEGAL EXPORTS OF RESOURCES WERE UNCOVERED LAST YEAR A 50 JUMP FROM 1992 THE CASES INVOLVED 19580 TONS OF METALS 107690 TONS OF OIL PRODUCTS AND 204620 CUBIC YARDS OF TIMBER PERU'S STATE OIL COMPANY PETROPERU WILL BE BROKEN UP AND SOLD OFF BETWEEN AUGUST AND SEPTEMBER AS PART OF A GOVERNMENT PROGRAM TO SHED ALL 200 OF ITS OVERSTAFFED STATE COMPANIES BEFORE MID1995 PETROPERU'S REFINERIES STORAGE FACILITIES LUBRICANT FACTORY PORTS BLOCKS OF JUNGLE LAND FOR EXPLORATION AND JUNGLE PIPELINE WILL BE SOLD OFF SEPARATELY THE COMPANY WHICH POSTED A PROFIT OF 80 MILLION LAST YEAR PRODUCES 36000 BARRELS A DAY OF MAINLY HEAVY CRUDE AND PLANS TO BOOST THIS YEAR'S PRODUCTION TO 40000 BARRELS A DAY VIETNAM'S CENTRAL BANK INTRODUCED MEASURES TO RAISE BADLY NEEDED CAPITAL FOR ECONOMIC DEVELOPMENT THE BANK PLANS TO LOOSEN CONTROLS ON INTEREST RATES SHARPLY EXPAND COMMERCIAL LENDING AND ENCOURAGE THE GENERAL PUBLIC TO PUT MORE MONEY INTO SAVINGS ACCOUNTS OVER THE NEXT TWO TO THREE YEARS VIETNAM ALSO PLANS TO SET UP BOND FOREIGNEXCHANGE AND MONEY MARKETS THE COUNTRY NEEDS MORE THAN 40 BILLION THROUGH THE END OF THE DECADE TO KEEP ITS ECONOMY GROWING AT AN ANNUAL RATE OF 8 TO 10 KAZAKHSTAN'S PRESIDENT CALLED ON MEMBERS OF THE COMMONWEALTH OF INDEPENDENT STATES TO FORM AN ORGANIZATION SIMILAR TO THE 12NATION EUROPEAN UNION NURSULTAN NAZARBAYEV SAID THE GROUP OF FORMER SOVIET REPUBLICS SHOULD CREATE A EUROASIAN UNION WITH A SINGLE CURRENCY AND FREEDOM OF MOVEMENT ACROSS NATIONAL BORDERS RUSSIA AND KAZAKHSTAN MIGHT FORGE SUCH A UNION THEMSELVES IF OTHER CIS MEMBERS AREN'T INTERESTED MOST EXSOVIET REPUBLICS HAVE REJECTED OTHER PROPOSALS FOR CREATING SUPRANATIONAL BODIES FEARING A RESURGENCE OF RUSSIAN IMPERIALISM IT WASN'T CLEAR WHETHER THE PROPOSED EUROASIAN UNION WOULD COMPLETELY REPLACE THE CIS THE NUMBER OF AIRLINE PASSENGERS TO LATIN AMERICA GREW 7 LAST YEAR WHILE EUROPEAN AIRPORTS REPORTED A 4 INCREASE THE AIRPORTS COUNCIL INTERNATIONAL SAID LONDON HEATHROW WAS EUROPE'S BUSIEST AIRPORT BASED ON PASSENGER TRAFFIC IN 1993 AND TRAILED ONLY CHICAGO O'HARE AND DALLAS/FORT WORTH WORLDWIDE AFTER HEATHROW WHICH HANDLED 478 MILLION PASSENGERS LAST YEAR THE BUSIEST EUROPEAN AIRPORTS WERE FRANKFURT PARISCHARLES DE GAULLE AND PARISORLY AMSTERDAM AND LONDON GATWICK THE WORLD HEALTH OGANIZATION UNVEILED PLANS TO STEP UP THE FIGHT AGAINST A WORSENING GLOBAL EPIDEMIC OF TUBERCULOSIS THE UNITED NATIONS AGENCY URGED INDUSTRIALIZED COUNTRIES TO PROVIDE AN EXTRA 100 MILLION A YEAR TO HELP DEVELOPING NATIONS FIGHT THE DISEASE WHICH KILLS MORE PEOPLE THAN AIDS MALARIA CHOLERA AND TYPHOID TOGETHER TUBERCULOSIS WHICH WAS VIRTUALLY WIPED OUT IN INDUSTRIALIZED COUNTRIES BY THE 1960S HAS RESURFACED DESPITE A CHEAP AND EFFECTIVE CURE DRUGRESISTANT STRAINS ALSO HAVE DEVELOPED READILY AVAILABLE DRUGS COULD CURE MOST CASES SAVING 12 MILLION LIVES OVER THE NEXT 10 YEARS THE EUROPEAN UNION'S PLAN TO TAKE IN FOUR NEW MEMBER COUNTRIES NEXT YEAR GOT BACK ON COURSE WHEN BRITAIN AND SPAIN ACCEPTED A COMPROMISE ON VOTING RULES IN THE ENLARGED UNION THE COMPROMISE RAISES TO 27 THE NUMBER OF VOTES NEEDED TO BLOCK LEGISLATION BUT A VOTE MAY BE DELAYED IF A MEASURE IS OPPOSED BY 23 OR MORE VOTES THE DISPUTE OVER VOTING RULES THREATENED TO DELAY EXPANSION OF THE EU TO 16 MEMBERS FROM 12 FINLAND SWEDEN AUSTRIA AND NORWAY ARE TO JOIN ON JAN 1 1995 ALTHOUGH THEY FIRST MUST OBTAIN APPROVAL FROM THE EUROPEAN PARLIAMENT AND THEIR OWN VOTERS THE ENLARGEMENT PACT WILL BE FORMALLY ENDORSED TODAY BY EU AMBASSADORS AND REPRESENTATIVES OF THE FOUR APPLICANT COUNTRIES THE DEAL THEN GOES TO THE EUROPEAN PARLIAMENT FOR APPROVAL AND THE FOUR APPLICANTS FOR RATIFICATION SEPARATELY POLAND SAID IT WILL APPLY NEXT MONTH FOR FULL EU MEMBERSHIP IN HOPES OF JOINING THE TRADE BLOC BY THE YEAR 2000 THE EASTERN EUROPEAN NATION CURRENTLY IS AN ASSOCIATE MEMBER SPANISH FISHERMEN BLOCKED TWO PORTS IN SOUTHWESTERN FRANCE TO PROTEST OVERFISHING OF ANCHOVIES BY LARGE FRENCH BOATS SYMPATHETIC FRENCH FISHERMEN WHO OPERATE SMALL BOATS DESTROYED 20 TONS OF ANCHOVIES POWER BLACKOUTS IN HAVANA HAVE DOUBLED THIS WEEK TO ABOUT 10 HOURS A DAY BECAUSE OF BREAKDOWNS AND FUEL SHORTAGES AT SEVERAL OF CUBA'S POWER PLANTS 9403300053 940330 LEISURE & ARTS AUSTRALIA'S SPIRITUALLY CORRECT CAPITAL BY LINDA JAIVIN CANBERRA AUSTRALIA QUICK QUIZ WHAT DO STONEHENGE BEIJING AND CANBERRA HAVE IN COMMON HINT IT'S NOT THE QUALITY OF THE NIGHTLIFE THERE'S PLENTY TO DO IN BEIJING OF AN EVENING ANSWER ALL WERE PLANNED ACCORDING TO A SACRED GEOMETRY INSPIRED BY COSMOLOGICAL SYMBOLISM AND GEOMANTIC WISDOM IT'S JUST THAT NO ONE EVER NOTICED THIS ABOUT CANBERRA BEFORE ALL ANYONE EVER NOTICED ABOUT THE AUSTRALIAN CAPITAL WAS THAT IT WAS CLEAN AND BORING THE CITY WAS BORN FOLLOWING FEDERATION IN 1901 WHEN THE NEW NATION NEEDED A CAPITAL NEITHER MELBOURNE NOR SYDNEY WOULD CONCEDE THIS HONOR TO THE OTHER SO THE GOVERNMENT CHOSE SOME SHEEP PADDOCKS BETWEEN THE TWO AND STAGED AN INTERNATIONAL COMPETITION FOR A CIVIC PLAN THE WINNERS WERE AN AMERICAN ARCHITECT AND STUDENT OF LOUIS SULLIVAN WALTER BURLEY GRIFFIN WORKING WITH HIS WIFE MARION MAHONY GRIFFIN WHO'D WORKED FOR 11 YEARS IN FRANK LLOYD WRIGHT'S STUDIO THEIR DESIGN WAS INTENDED TO MAKE CANBERRA IN WALTER GRIFFIN'S WORDS A CITY NOT LIKE ANY OTHER CITY IN THE WORLD AN IDEAL CITY EVEN THOSE WHO FIND CANBERRA UNSPEAKABLY YAWNSOME ACKNOWLEDGE THAT IT DOES REPRESENT SOME SORT OF PROSAIC IDEAL RESIDING IN LITTLE SUBURBAN GARDEN COMMUNITIES CANBERRANS TODAY MAKE THEIR DAILY COMMUTE TO THE NEAT URBAN CENTER OVER PERFECTLY MAINTAINED AND UNCONGESTED ROADS IT APPEARS HOWEVER THAT THE OLD GREATPLACETOWORKANDRAISEAFAMILY WAS NOT QUITE THE IDEAL THAT THE GRIFFINS HAD IN MIND THEY HAD A GRANDER LOFTIER VISION YET UNTIL PETER PROUDFOOT A SYDNEYBASED ARCHITECTURE SCHOLAR STARTED SIFTING THROUGH MARION GRIFFIN'S UNPUBLISHED FOURVOLUME MAGIC OF AMERICA NO ONE REALIZED THE GRIFFINS HAD NOT MEANT FOR CANBERRA TO BE JUST ANOTHER TURNOFTHECENTURY CITY BEAUTIFUL IN THE SECRET PLAN OF CANBERRA UNIVERSITY OF NEW SOUTH WALES PRESS 120 PAGES 2130 MR PROUDFOOT ARGUES THAT INSTEAD THE GRIFFINS WERE THINKING ROME BEIJING AND EVEN THE NEW JERUSALEM THEY WERE THINKING OMPHALOS COSMIC PEAKS AND CAPUT MUNDI CENTER OF THE WORLD THEY WERE THINKING HELLENISTIC THEATERS THEY WERE ALSO THINKING FENG SHUI CHINESE GEOMANCY THEY SAW THAT CANBERRA HAD FIVE MOUNTAINS IN SIMILAR LAYOUT TO THE FIVE SACRED MOUNTAINS OF CHINA THE GRIFFINS APPARENTLY WERE EARLY 20THCENTURY FORERUNNERS OF PEOPLE WHO CURE WITH CRYSTALS THEY DABBLED IN EASTERN RELIGIONS AND THE PROTONEW AGE CULTS OF THEOSOPHY AND SWEDENBORGIAN MYSTICISM QUITE SENSIBLY THEY WERE DEALING WITH POLITICIANS AND BUREAUCRATS AFTER ALL THEY DIDN'T TALK ABOUT THIS MUCH IN PUBLIC THEY GUARDED THEIR SECRETS IN MR PROUDFOOT'S WORDS LIKE MEDIEVAL MASTER MASONS BUT IN THE END MARION DECIDED TO WRITE THEM ALL DOWN IN HER VOLUMINOUS TREATMENT OF THE GRIFFINS' CAREER IN AMERICA AUSTRALIA AND LATER INDIA IN THEIR VISION CANBERRA WOULD BECOME ONE OF THE GREAT CAPITAL CITIES OF THE WORLD PUBLIC MONUMENTS WOULD COMPLEMENT THE SPIRITUAL FORCES ALREADY PRESENT IN THE LAND TO CREATE THE PERFECT SETTING FOR DEMOCRACY ON THE MODEL OF ANCIENT ROME BUT A FUNNY THING HAPPENED ON THE WAY TO THE FORUM POLITICIANS BUREAUCRATS AND CIVICPLANNING BODIES PLAGUED BY TIGHT BUDGETS AND INFESTED WITH BOURGEOIS ENGLISH NOTIONS OF LANDSCAPE PRETTIFICATION FORCED SUCCESSIVE MODIFICATIONS TO THE GRIFFINS' ORIGINAL PLAN ONE RESULT IS THAT TODAY ONE POINT OF A SACRED TRIANGLE SYMBOLIZING LIBERTY EQUALITY AND FRATERNITY RESTS ON CAPITAL HILL AND THE SECOND ON CITY HILL BEHIND THE CANBERRA THEATRE THE THIRD HOWEVER SITS INELEGANTLY IN A PARKING LOT FOR DEFENSE BUREAUCRATS ELSEWHERE GEOMANTICALLY CHALLENGED TREES OBSCURE VITAL VISTAS READERS MAY WONDER WHETHER THE THUS DISTRESSED FENG SHUI HAS AFFECTED THE QUALITY OF POLITICAL DEBATE IN CANBERRA YOU'RE A SCUMBAG NO YOU'RE A SCUMBAG ORDER IN THE HOUSE ON THE OTHER HAND MR PROUDFOOT CONTENDS THAT AMERICAN ARCHITECT ROMALDO GIURGOLA'S DESIGN FOR THE NEW PARLIAMENT HOUSE COMPLETED SIX YEARS AGO RESPONDS TO THE GEOMANTIC PRINCIPLES UNDERLYING THE GRIFFINS' ORIGINAL PLAN THE INTERNAL ARCHITECTURE ECHOES THE LINES OF THE VESICA A SACRED SYMBOL OF EARLY CHRISTIANITY THE BUILDING'S RAMPED HEMICYCLES SUGGEST THE PROTECTIVE AZURE DRAGON AND WHITE TIGER FORMS OF FENG SHUI THEY ALSO RECALL ROMAN THEATER TEMPLES THE RELATIONSHIP OF THE BUILDING TO CAPITAL HILL EVOKES THE GREEK CITY WHERE THE CITY FORM IS SEEN AGAINST THE SACRED MOUNTAIN THE AUTHOR CONTENDS THAT GIURGOLA IS LARGELY UNAWARE OF THE ANCIENT REGIME TO WHICH HE IS RESPONDING YET HE ALSO IMPLIES THAT MR GIURGOLA PURPOSEFULLY DRAWS A VEIL OVER THE TRUE NATURE OF THE PARLIAMENT HOUSE DESIGN IN HIS WRITING UNLIKE THE GRIFFINS MR GIURGOLA IS ALIVE AND PRESUMABLY AT THE END OF A FAX LINE SOMEWHERE WHY DIDN'T THE AUTHOR ASK HIM ABOUT IT DIRECTLY UNFORTUNATELY THIS IS A BIT TYPICAL OF THE SPECULATIVE NATURE OF THE ENTIRE BOOK THOUGH IT MAY FALL JUST SHORT OF PERSUASIVE THE SECRET PLAN OF CANBERRA IS NONETHELESS AN INTRIGUING AND ENTERTAINING READ AND YOU'LL NEVER CALL CANBERRA BORING AGAIN MS JAIVIN LIVED IN CANBERRA FOR SIX YEARS BEFORE FLEEING TO SYDNEY 9403300052 940330 BROKER FIRMS ARE RAIDING PRUDENTIAL FOR TALENT AMID PROBLEMS AT COMPANY BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATION'S BIG BROKERAGE FIRMS ARE SWOOPING IN TO TRY TO SNATCH TOP TALENT FROM PRUDENTIAL SECURITIES INC IN THE LATEST MOVE MERRILL LYNCH & CO HAS HIRED RICHARD GADBOIS III ONE OF PRUDENTIAL'S TOPPRODUCING BROKERS WHO RAN A FIVEPERSON GROUP IN IRVINE CALIF THAT SPECIALIZED IN SELLING RESTRICTED STOCK FOR COMPANY EXECUTIVES MR GADBOIS EARNED GROSS ANNUAL COMMISSIONS OF MORE THAN 3 MILLION AND HELPED WIN A BIG CHUNK OF INVESTMENTBANKING BUSINESS FOR PRUDENTIAL BROKERAGE EXECUTIVES SAID MR GADBOIS'S DEPARTURE COMES AMID SEVERAL OTHER SIGNIFICANT DEFECTIONS FROM THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT THIS YEAR AMONG THOSE WHO HAVE LEFT PRUDENTIAL IN RECENT WEEKS ARE JAMES CURLEY PRUDENTIAL'S FUTURES CHIEF WILLIAM GOLDFARB A TOPPRODUCING BROKER AND WILLIAM BEE A SENIOR BLOCK TRADER MEANWHILE PRUDENTIAL RECENTLY FILED COURT PAPERS TO BAR DAIN BOSWORTH INC FROM HIRING AWAY ANY MORE OF ITS EMPLOYEES IN PAPERS FILED IN A MANHATTAN STATE COURT PRUDENTIAL ALLEGES THAT DAIN BOSWORTH WRONGLY INDUCED 13 PRUDENTIAL EMPLOYEES TO LEAVE INCLUDING A MANAGER ASSISTANT MANAGER AND SEVEN BROKERS DURING THE PAST FIVE MONTHS DAIN BOSWORTH A MINNEAPOLIS BROKERAGE FIRM AND UNIT OF INTERREGIONAL FINANCIAL GROUP COULDN'T BE REACHED FOR COMMENT PRUDENTIAL HAS LOST ABOUT TWICE AS MANY BROKERS AS IT HAS RECRUITED THIS YEAR SINCE JANUARY PRUDENTIAL SAYS IT HAS LOST 141 BROKERS TO COMPETITORS WHILE HIRING ABOUT 70 THE NET LOSSES REPRESENT SLIGHTLY LESS THAN 15 OF ITS NEARLY 6000MEMBER BROKERAGE FORCE LAST YEAR PRUDENTIAL LOST ABOUT 500 BROKERS TO RIVALS WHILE HIRING 400 GIVEN ALL THE PUBLICITY WE'VE SEEN OVER THE LAST SIX TO EIGHT MONTHS THE NUMBERS ARE WELL WITHIN WHAT WE PLANNED FOR A PRUDENTIAL SPOKESMAN SAID PRUDENTIAL HAS SET UP A 330 MILLION REPARATIONS FUND TO SETTLE FEDERAL AND STATE CHARGES THAT IT DEFRAUDED INVESTORS IN GETTING THEM TO BUY 815 BILLION OF LIMITED PARTNERSHIPS IN THE 1980S MEANTIME THE US ATTORNEY'S OFFICE IN MANHATTAN IS EXAMINING THE ACTIVITIES OF PRUDENTIAL AND ITS INSURANCE PARENT IN A SEPARATE CRIMINAL INVESTIGATION PARTLY TO STEM THE RECENT DEPARTURES PRUDENTIAL HAS BEGUN OFFERING SOME NEW BROKERS UPFRONT BONUSES OF 50 OF THEIR ANNUAL PRODUCTION PLUS 50 COMMISSION PAYOUTS BROKERAGE EXECUTIVES SAID TYPICALLY BROKERS GET TO KEEP BETWEEN 25 AND 45 OF THEIR COMMISSIONS WE'RE BEING COMPETITIVE WITH WHAT OTHER PEOPLE HAVE BEEN OFFERING IN THE MARKETPLACE THE PRUDENTIAL SPOKESMAN SAID BROKER TURNOVER TYPICALLY IS HIGH ON WALL STREET AND FAT UPFRONT BONUSES INCREASINGLY HAVE BEEN USED BY BROKERAGE FIRMS IN RECENT YEARS TO LURE BIG PRODUCERS BUT THE SIGNIFICANT DEPARTURES AT PRUDENTIAL UNDERSCORE HOW DIFFICULT IT IS FOR BROKERAGE FIRMS TO RETAIN KEY PEOPLE AMID UNCERTAINTY AND REGULATORY INVESTIGATIONS BROKERAGE EXECUTIVES SAY SALOMON BROTHERS INC FOR INSTANCE WAS HIT WITH A WAVE OF DEFECTIONS OF INVESTMENT BANKERS TRADERS AND ANALYSTS IN THE WAKE OF ITS 1991 TREASURYAUCTION BIDDING SCANDAL THE LOSS OF MR GADBOIS WAS A BLOW TO PRUDENTIAL BROKERAGE EXECUTIVES SAY THAT'S BECAUSE UNLIKE MOST BROKERS WHO TYPICALLY DEAL WITH INDIVIDUAL INVESTORS MR GADBOIS TARGETED HIGHPRICED CORPORATE EXECUTIVES HE BUILT HIS BUSINESS BY SEEKING OUT CALIFORNIA ENTREPRENEURS AND THEN ADDING CLIENTS THROUGH NETWORKING ASSOCIATES SAY MR GADBOIS 36 YEARS OLD SUCCESSFULLY USED HIS EXTENSIVE SOCIAL CONTACTS TO WIN BROKERAGE BUSINESSS BEFORE ENTERING THE BROKERAGE BUSINESS MR GADBOIS WORKED FOR THREE YEARS AT THE SANTA BARBARA CALIFORNIA YACHT CLUB ASSOCIATES SAY HIS FATHER RICHARD GADBOIS IS A CALIFORNIA FEDERAL JUDGE WHO LAST YEAR SENTENCED STEPHEN D WYMER THE SOUTHERN CALIFORNIA MONEY MANAGER WHO DEFRAUDED DOZENS OF MUNICIPALITIES OF ABOUT 174 MILLION BESIDES SELLING STOCK FOR CORPORATE INSIDERS MR GADBOIS OPERATES AS A MIDDLEMAN PUTTING EXECUTIVES TOGETHER WITH MONEY MANAGERS EXECUTIVEBENEFIT CONSULTANTS AND ESTATE PLANNERS HE IS AMONG A NEW BREED OF 144 BROKERS THAT IS SPECIALISTS HANDLING SALES BY CORPORATE OFFICERS DIRECTORS AND OTHERS OF RESTRICTED STOCK UNDER SECURITIES AND EXCHANGE COMMISSION RULE 144 MR GADBOIS COULDN'T BE REACHED FOR COMMENT PRUDENTIAL CONCEDES THAT MR GADBOIS WAS A BIG RAINMAKER FOR ITS PART HOWEVER THE FIRM SAYS IT IS FOCUSING MORE ON TRAINING NEW BROKERS THAN RECRUITING RIVALS THESE DAYS PRUDENTIAL SAYS IT TRAINED 155 BROKERS THIS YEAR AND PLANS TO TRAIN A TOTAL OF 600 BY YEAR END THREE YEARS AGO PRUDENTIAL DIDN'T TRAIN ANY BROKERS OVER THE LAST TWO YEARS WE GOT INTO A MOSTLY TRAINING AS OPPOSED TO RECRUITING MODE THE PRUDENTIAL SPOKESMAN SAYS MEANTIME PRUDENTIAL IS RECRUITING QUALITY PEOPLE FROM OTHER BROKERAGE FIRMS FOR INSTANCE PRUDENTIAL SAYS IT RECENTLY HIRED AN ENTIRE SIXBROKER OFFICE FROM PAINEWEBBER GROUP INC IN BALTIMORE PRUDENTIAL ALSO SAYS IT HIRED A BRANCH MANAGER IN SEATTLE A BROKERAGE FIRM MANAGING DIRECTOR AND A MUTUALFUND MARKETING EXECUTIVE FROM SMITH BARNEY SHEARSON INC A UNIT OF TRAVELERS INC 9403300050 940330 BUSINESS BRIEF TYCO INTERNATIONAL LTD AUSTRALIAN CONCERN PREPARES TO DISTRIBUTE STAKE IN FIRM TYCO INTERNATIONAL LTD SAID THAT TYCO INVESTMENTS AUSTRALIA LTD SYDNEY PLANS TO DISTRIBUTE ITS 10 STAKE IN TYCO TO TYCO INVESTMENTS SHAREHOLDERS ON A PROPORTIONAL BASIS TYCO INTERNATIONAL OF EXETER NH SAID DISTRIBUTION OF TYCO INVESTMENTS' SHARES IS SUBJECT TO SHAREHOLDER VOTES AND AUSTRALIAN COURT APPROVALS A SPOKESMAN FOR TYCO INTERNATIONAL SAID TYCO INVESTMENTS IS PRIMARILY HELD BY INSTITUTIONAL INVESTORS WITH THE TYCO STAKE REPRESENTING MOST OF ITS ASSETS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE TYCO INTERNATIONAL WAS QUOTED AT 50 DOWN 1875 9403300049 940330 BUSINESS BRIEF PARKER HANNIFIN CORP COMPANY PLANS TO SELL MOST OF METAL BELLOWS BUSINESS PARKER HANNIFIN CORP WILL SELL MOST OF ITS AEROSPACEMETAL BELLOWS BUSINESS TO SENIOR FLEXONICS INC THE CHICAGOBASED UNIT OF SENIOR ENGINEERING GROUP PLC RICKMANSWORTH ENGLAND TERMS WEREN'T DISCLOSED THE CLEVELANDBASED PRODUCER OF MOTIONCONTROL COMPONENTS AND SYSTEMS SAID IT WILL SELL THE PARKER METAL BELLOWS DIVISION IN SHARON MASS AND MOST LINES PRODUCED IN THE DIVISION'S MOORPARK CALIF FACILITY PARKER HANNIFIN SAID THE TRANSACTION IS PART OF ITS AEROSPACE GROUP'S RESTRUCTURING PLAN WHICH ALSO HAS INVOLVED CONSOLIDATION OF OTHER FACILITIES AND DIVISIONS PRODUCTION WILL CONTINUE AT THE SHARON FACILITY WHILE POSITIONS AT THE MOORPARK PLANT WILL BE MOVED TO SENIOR FLEXONICS PLANTS IN THE US THE 120 WORKERS AT THE MOORPARK FACILITY WILL LOSE THEIR JOBS AS WORK IS PHASED OUT 9403300048 940330 BUSINESS BRIEF DELTONA CORP MIAMI DEVELOPER CONSIDERS FILING FOR REORGANIZATION DELTONA CORP SAID IT IS UNABLE TO PAY MANY OF ITS OPERATING EXPENSES AND IS CONSIDERING AMONG OTHER THINGS THE POSSIBILITY OF FILING FOR REORGANIZATION UNDER FEDERAL BANKRUPTCY LAWS THE MIAMIBASED DEVELOPER OF PLANNED COMMUNITIES ALSO SAID IT PLANS TO REDUCE ITS STAFF BY OVER HALF TO 48 PEOPLE THE COMPANY ADDED THAT IT IS NOT LIKELY TO RELEASE ITS 1993 FOURTHQUARTER EARNINGS REPORT YEAREND RESULTS OR ANNUAL REPORT ON A TIMELY BASIS THE COMPANY HAS NOT SET A DATE FOR ITS ANNUAL SHAREHOLDERS MEETING DELTONA AND ITS CONTROLLING SHAREHOLDERS SELEX INTERNATIONAL BV AND YASAWA HOLDING NV HAVE HELD PRELIMINARY TALKS WITH SEVERAL PARTIES WHO MAY BE INTERESTED IN BUYING THE POSITIONS OF SELEX AND YASAWA AND PROVIDING FINANCING THIS MONTH THE COMPANY SAID IT WAS IN DEFAULT ON PAYMENT OBLIGATIONS TO A DIVISION OF FLORIDA LAND SALES ESCROW FUND TO ITS CORPORATEOFFICE LANDLORD AND TO LENDERS SUCH AS SELEX DELTONA HAS BEEN TROUBLED IN RECENT YEARS BY A CLASSACTION LAWSUIT FROM RESIDENTS WHO SAID THEY PAID FOR LAND THEY NEVER RECEIVED FAILED MARKETING INITIATIVES AND FINANCING PROBLEMS 9403300047 940330 REVIEW & OUTLOOK EDITORIAL HILLARY IN THE PITS THE 1980S USHERED IN A GILDED AGE OF GREED AND SELFISHNESS OF IRRESPONSIBILITY AND EXCESS AND OF NEGLECT THE 1980S WERE ABOUT ACQUIRING ACQUIRING WEALTH POWER PRIVILEGE WHITEWATER ETC HAS MANY UNSOLVED MYSTERIES BUT FEW MORE CURIOUS THAN HILLARY CLINTON'S CATTLEFUTURES TRADING IN THE LATE 1970S IT'S BEEN A WONDER THIS WELLESLEYCUMYALE LEGAL ACTIVIST FOR CHILDREN WOULD MAKE A BRIEF BUT APPARENTLY SENSATIONAL VENTURE INTO THE COMMODITY PITS THE MYSTERY RAISED BY A NEW YORK TIMES REVELATION OF NEARLY 100000 IN TRADING PROFITS TOOK A FEW DAYS TO GROW INTO YET ANOTHER CRISIS ON THE WHITE HOUSE DOORSTEP THIS DELAY WAS PROBABLY A MEASURE OF HOW REMOVED THE COMMODITIES BUSINESS IS FROM THE BELTWAY CONSCIOUSNESS YESTERDAY THE SPINMEISTERS AT 1600 PENNSYLVANIA WERE SCRAMBLING TO KNOCK DOWN A NEWSWEEK STORY SUGGESTING HILLARY HAD PUT NO MONEY INTO THE DEALS PIGGYBACKING INSTEAD ON THE TRADING SUCCESS OF AN ATTORNEY FOR ONE OF ARKANSAS'S BIGGEST COMPANIES YESTERDAY AFTERNOON THE WHITE HOUSE RELEASED SOME PREVIOUSLY UNAVAILABLE RECORDS TO SUBSTANTIATE HER COMMODITIES POSITION NO DOUBT THE FOLKS WHO DO THIS BUSINESS FOR A LIVING ARE GOING TO BE HEARD FROM IN COMING DAYS AS TO WHAT QUESTIONS THESE RECORDS DO ANSWER AND WHAT THEY DON'T BUT OUR INITIAL LOOK AT THESE DOCUMENTS REVEALS THAT SHE MADE AN INSTANT SPLASH APPARENTLY WALKING AWAY WITH 5300 A DAY AFTER DEPOSITING 1000 IN A MARGIN ACCOUNT FROM THERE IT WAS UP AND DOWN MOSTLY UP OVER A NINEMONTH SPAN IN ONE ACCOUNT AND SUBSEQUENTLY FIVE MONTHS IN ANOTHER SHE LATER BRANCHED OUT FROM CATTLE TO TRADE A HALFDOZEN COMMODITIES INCLUDING HOGS SOYBEANS LUMBER AND COPPER COME AGAIN ON THE '80S THE WHITE HOUSE HAS NOW ADDED DOCUMENTARY SUPPORT TO THE CONTENTION THAT MRS CLINTON INCURRED HER OWN RISK IN ACCOUNTS THAT LED TO MORE THAN 26000 IN REPORTED PROFITS IN 1978 AND NEARLY 73000 IN 1979 BUT THE HANDLING OF HER MAIN ACCOUNT IS STILL SOMETHING TO WONDER ABOUT THE BROKER FOR THAT ACCOUNT ROBERT L RED BONE OF SPRINGDALE ARK HAS A RECORD THAT IS CHECKERED EVEN BY COMMODITYINDUSTRY STANDARDS THE MOST PERTINENT TO THIS MATTER MAY BE A DECEMBER 1979 DISCIPLINING BY THE CHICAGO MERCANTILE EXCHANGE WHICH HANDLES CATTLE FUTURES FOR SERIOUS AND REPEATED VIOLATIONS OF RECORDKEEPING FUNCTIONS ORDERENTRY PROCEDURES MARGIN REQUIREMENTS AND HEDGE PROCEDURES WHETHER MRS CLINTON KNEW THE SORT OF MAN SHE WAS DEALING WITH WE DON'T KNOW BUT JIM BLAIR THE TYSON FOODS LAWYER WHO GOT HER INTO COMMODITIES WAS MR BONE'S LAWYER TOO MR BONE IN 1972 WAS AN OFFICIAL OF TYSON FOODS WHEN HE DON TYSON THE COMPANY AND HALF A DOZEN OTHER PARTIES WERE ACCUSED OF MANIPULATING THE EGG FUTURES MARKET THEY ULTIMATELY SETTLED THE CASE IN 1977 WITH THE COMMODITY FUTURES TRADING COMMISSION NOT ADMITTING OR DENYING GUILT MR BONE WAS SUSPENDED FROM TRADING FOR A YEAR AS A RESULT OF THAT MEANWHILE IN 1975 AS THE CASE WAS IN LIMBO HE HAD BECOME A BROKER AND JOINED CHICAGOBASED REFCO INC TO RUN ITS SPRINGDALE BRANCH ACCORDING TO SECURITIES WEEK THIS WAS A FATEFUL MATCH REFCO WAS AS ROUGH AND TUMBLE AS THEY COME IN THE COMMODITIES WORLD BUT UNDER THE CHAIRMANSHIP OF THOMAS DITTMER A CATTLE TRADER EXTRAORDINAIRE IT WOULD ENJOY A HISTORIC BULLISH PLAY IN THAT PARTICULAR FUTURES MARKET DURING 197879 THE REMARKABLE STORY OF REFCO'S RISE IN COMMODITIES UNDER MR DITTMER WAS DESCRIBED IN A LONG MARCH 13 1984 PROFILE IN THE JOURNAL HILLARY CLINTON AND JIM BLAIR WERE ALONG FOR THE RIDE THEIR GAINS MAY IN THAT CONTEXT BE PERFECTLY EXPLAINABLE THOUGH THEIR EXIT TIMING HAD TO HAVE BEEN GOOD AS WELL APPARENTLY RED BONE WAS SO GUNGHO WITH REFCO THAT HE COULDN'T WAIT OUT THE YEAR'S SUSPENSION HE'D BEEN GIVEN IN 1977 IN A CASE FILED IN 1980 HE WAS ACCUSED OF HAVING TRADED QUITE PROFITABLY THROUGH AN ASSOCIATE ROY WOODS DURING THE 197778 PERIOD JUST PRIOR TO HIS BUSINESS WITH MRS CLINTON FOR THIS HE WAS FINED 100000 IN 1981 A SEVERE SANCTION AND BARRED AGAIN FROM TRADING REPORTEDLY HE WAS BANKRUPTED AROUND THAT TIME AS THE MARKET TURNED AGAINST HIM AND HIS LICENSE EXPIRED IN 1984 MR BONE COULDN'T BE REACHED WE DID CATCH UP WITH MR WOODS WHO WAS ALSO SANCTIONED IN 1981 HE SAID HE'D BEEN IN THE TRUCKING BUSINESS FOR 12 YEARS DIDN'T REMEMBER MUCH OF ANYTHING ABOUT TRADES AND HAD TO HANG UP BECAUSE HIS DINNER WAS GETTING COLD WE DWELL ON MR BONE BECAUSE AS MRS CLINTON'S BROKER HE IS CRUCIAL TO ANY RESOLUTION OF THE REMAINING MURK AROUND THIS DEAL AND FOR THAT MATTER THE RECORD OF MR BLAIR'S OWN TRADES WITH HIS BROKER BUT EVEN IF MRS CLINTON'S RECORDS TELL THE FULL STORY AND ALL WAS SQUARE IN THE SPRINGDALE OFFICE OF REFCO THIS DATED TALE HAS A CONNECTION TO AMERICAN POLITICS IN 1994 IF COMMODITY SPECULATION WHERE THERE'S A LOSER FOR EVERY WINNER WAS THE BASIS FOR THE CLINTONS' RISE TO AFFLUENCE WHAT HAS ALL THE MORALIZING ABOUT THE DECADE OF GREED BEEN ABOUT IN ANY EVENT THE '80S WEREN'T EVEN BORN WHEN HILLARY WAS CLEANING UP IN CATTLE FOR SEVERAL MONTHS THIS PAST FALL AND WINTER THE CLINTON ADMINISTRATION ENJOYED A STREAK OF SEEMING SUCCESSES THAT WAS BEGINNING TO RIVAL HILLARY'S COMMODITIES CORNUCOPIA FOR ITS AUDACIOUS IMPROBABILITY NOW IN BOTH POLICY SUBSTANCE AND PERSONAL IMAGE THIS WHITE HOUSE APPEARS TO HAVE TOPPED OUT AS FAST AS FORTUNES CAN CHANGE IN THESE TIMES THE FIRST COUPLE MIGHT BEGIN TO WEIGH HOW MUCH POLITICAL CAPITAL THEY HAVE TO MEET A MARGIN CALL 9403300046 940330 COMMODITIES US IS PRESSING CANADA TO IMPOSE EXPORT CAP ON WHEAT AND BARLEY IN WAKE OF SHIPMENT SURGE BY JOHN URQUHART AND SCOTT KILMAN STAFF REPORTERS OF THE WALL STREET JOURNAL A SUDDEN SURGE OF CANADIANCROP SHIPMENTS TO THE US IS FUELING A SPAT BETWEEN NEIGHBORS CANADIAN WHEAT HAS GRABBED A RECORD 7 OF US CONSUMPTION FIGURE US TRADE GROUPS AND CANADIAN BARLEY OATS AND OTHER CROPS ARE ALSO MAKING BIG INROADS AS A RESULT THE US GOVERNMENT IS PRESSING CANADA TO IMPOSE AN ANNUAL CAP ON ITS EXPORTS OF WHEAT AND BARLEY TO THE US MARKET OF 18 MILLION METRIC TONS A METRIC TON IS EQUIVALENT TO 220462 POUNDS US AGRICULTURE SECRETARY MIKE ESPY AND CANADIAN AGRICULTURE MINISTER RALPH GOODALE DISCUSSED THE ISSUE IN TORONTO A WEEK AGO BUT FAILED TO MAKE MUCH HEADWAY CANADIAN GRAIN SHIPMENTS TO THE US CLIMBED STEADILY FOR SEVERAL YEARS THEN SOARED THIS WINTER IN THE WAKE OF THE CROP DISASTER IN THE MIDWEST LAST YEAR RECORD FLOODING REDUCED BOTH THE QUANTITY AND QUALITY OF THE US CORN CROP WHICH IS MOSTLY USED TO FEED LIVESTOCK THAT HAS CREATED CORN SHORTAGES IN SOME STATES SUCH AS WISCONSIN AND DRIVEN CORN PRICES TO LEVELS HIGH ENOUGH TO ATTRACT FOREIGN GRAIN US GRAIN ANALYSTS EXPECT AN AGRICULTURE DEPARTMENT REPORT TOMORROW TO SHOW THAT THE US CORN SUPPLY ON MARCH 1 WAS ABOUT 31 SMALLER THAN ON THE YEAREARLIER DATE US TRADERS ARE SPECULATING THAT THE QUARTERLY GOVERNMENT SURVEY WILL FIND A STOCKPILE OF 395 BILLION BUSHELS COMPARED WITH 568 BILLION BUSHELS ON THE YEAREARLIER DATE THE TIGHT CORN SUPPLY IN THE US IS FORCING MANY LIVESTOCK PRODUCERS TO SWITCH TO LOWGRADE WHEAT FROM CANADA WHICH HAS A SURPLUS IN THE WAKE OF ITS OWN GROWING PROBLEMS LAST YEAR LOWQUALITY CANADIAN WHEAT IS SHOWING UP IN CATTLE FEEDLOTS AND OTHER LIVESTOCK OPERATIONS AS FAR SOUTH AS AMARILLO TEXAS AND AS FAR EAST AS NORTH CAROLINA SAY US FARM GROUPS GRAIN TRADERS ARE DIVIDED OVER WHETHER THE INFLUX OF CANADIAN WHEAT HAS DONE MUCH TO DEPRESS US WHEAT PRICES SLOW US WHEAT EXPORTS ARE PROBABLY MORE TO BLAME FOR A LACKLUSTER MARKET SINCE FEBRUARY IN TRADING AT THE MINNEAPOLIS GRAIN EXCHANGE THE SPRING WHEAT CONTRACT FOR JULY DELIVERY SLIPPED TWO CENTS A BUSHEL TO SETTLE AT 3325 ACCORDING TO SOME TRADERS CANADIAN FEED WHEAT MIGHT BE MORE RESPONSIBLE FOR TAKING SOME STEAM OUT OF THE CORN MARKET IN RECENT MONTHS CORN AND SOYBEAN PRICES FELL YESTERDAY AMID PROFITTAKING IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MAY DELIVERY SANK 15 CENTS A BUSHEL TO SETTLE AT 285 THE SURGE OF CANADIAN WHEAT WILL SUBSIDE SOME IF US CORN GROWERS MANAGE TO HARVEST A DECENT CROP THIS YEAR HOWEVER CANADA IS WIDELY EXPECTED TO EXPAND ITS SHIPMENT TO THE US OF HIGHQUALITY WHEAT AND DURUM SUITABLE FOR MILLING CANADIAN DURUM WHICH IS USED TO MAKE PASTA PRODUCTS ACCOUNTS FOR MORE THAN 20 OF US CONSUMPTION THE EXPLANATION FOR THAT FORECAST DEPENDS ON WHICH SIDE OF THE BORDER YOU FARM US FARM GROUPS ARE COMPLAINING TO WASHINGTON THAT CANADA UNFAIRLY SUBSIDIZES THE COST OF EXPORTING CROPS SOUTH THE US AGRICULTURE DEPARTMENT RECENTLY REPORTED THAT THE CANADIAN WHEAT BOARD WHICH IS THE GOVERNMENT WHEAT MARKETING AGENCY APPEARED TO SELL 200000 TONS OF LOWQUALITY FEED WHEAT TO MEXICO IN LATE JANUARY AT A SELLING PRICE BELOW ITS COSTS OFFICIALS OF THE CANADIAN WHEAT BOARD HOWEVER ATTRIBUTE ARTIFICIALLY HIGH WHEAT PRICES IN THE US FOR ATTRACTING FOREIGN GRAIN CANADIAN DURUM SHIPMENTS TO THE US HAVE BEEN INCREASING SINCE THE MID1980S WHEN THE US GOVERNMENT STARTED SUBSIDIZING EXPORTS OF US WHEAT TO COMPETE WITH SUBSIDIZED EUROPEAN GRAIN THE SUBSIDY BATTLE HAS DEPRESSED INTERNATIONAL GRAIN PRICES BUT US DOMESTIC GRAIN PRICES HAVE REMAINED COMPARATIVELY HIGH ACCORDING TO CANADIAN OFFICIALS MAKING THE US AN ATTRACTIVE MARKET THE US MARKET HAS BECOME A HUGE MAGNET FOR CANADIAN GRAIN SAID A SPOKESMAN FOR THE CANADIAN WHEAT BOARD THE US AND THE EUROPEAN UNION HAVE AGREED TO REDUCE THEIR EXPORT SUBSIDIES BY 36 IN THE 19952001 PERIOD FOR THE NEXT YEAR AT LEAST THE CANADIAN WHEAT BOARD EXPECTS THE US AND THE EUROPEANS TO CONTINUE THEIR SUBSIDY BATTLE IN THE WHEAT MARKET CANADIAN WHEAT SHIPMENTS TO THE US IN THE SEVEN MONTHS ENDED FEB 28 TOTALED 352 MILLION BUSHELS A 36 INCREASE FROM A YEAR EARLIER THE CANADIAN GRAIN COMMISSION REPORTED MONDAY IN THE SAME PERIOD CANADIAN BARLEY SHIPMENTS TO THE US TOTALED 278 MILLION BUSHELS UP 500 FROM A YEAR EARLIER IN OTHER COMMODITY MARKETS YESTERDAY ENERGY MAY CRUDE OIL RECOVERED A BIT YESTERDAY FROM MONDAY'S STEEP DROP BUT TRADERS WERE STILL EDGY WAITING TO SEE WHETHER THERE WAS GOING TO BE FURTHER PRICE EROSION FOLLOWING THE WEEKEND MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IN GENEVA MAY CRUDE ON THE NEW YORK MERCANTILE EXCHANGE ROSE 24 CENTS TO 1432 A BARREL YESTERDAY AFTER MONDAY'S 105 A BARREL PLUNGE PRICES ALSO FOUND SOME SUPPORT FROM WIDESPREAD EXPECTATION THAT WEEKLY INDUSTRY REPORTS WOULD SHOW DECLINES APRIL GASOLINE ALSO SHOWED STRENGTH TACKING ON 109 CENTS A GALLON TO FINISH AT 4440 CENTS APRIL HEATING OIL ROSE AS WELL TO 4460 CENTS A GALLON UP 084 CENT 9403300045 940330 REVIEW & OUTLOOK EDITORIAL WHAT'S GOING ON A SURVEY TESTING LEVELS OF WORLD AFFAIRS KNOWLEDGE IN EIGHT NATIONS HAS CAUGHT OUR EYE AMERICANS IT HAS BEEN RECONFIRMED DON'T DO VERY WELL ON CURRENT EVENTS ONLY HALF THE AMERICANS TESTED COULD NAME THE PRESIDENT OF RUSSIA WHEREAS 94 OF THE GERMANS COULD DO SO AN AMAZING 72 OF THE AMERICAN SAMPLE DIDN'T KNOW IT IS THE SERBS WHO HAVE CONQUERED MOST OF BOSNIA AND LAID SIEGE TO SARAJEVO DESPITE THE ALMOST DAILY TELEVISION DIET OF NEWS ABOUT THE BLOODY DOINGS IN THAT TROUBLE SPOT THE KOREAS SHOULD BE OF MUCH MORE INTEREST TO AMERICANS GIVEN THE 36000 US TROOPS STATIONED IN SOUTH KOREA BUT ONLY 22 OF AMERICANS KNEW THAT NORTH KOREA HAS THREATENED TO DROP OUT OF THE NUCLEAR NONPROLIFERATION TREATY A SIMILAR OUTCOME APPLIED TO A QUESTION ABOUT WHO THE ISRAELIS HAD RECENTLY SIGNED A PEACE AGREEMENT WITH THOUGH ISRAEL FIGURES FAR MORE HEAVILY IN AMERICAN POLITICS THAN IN WHAT HAPPENS IN THE BUNDESTAG 79 OF THE GERMANS KNEW THE ANSWER COMPARED WITH ONLY 40 OF THE AMERICANS BOUTROS BOUTROSGHALI PRESIDES OVER THE UN AT ITS EAST SIDE MANHATTAN HEADQUARTERS BUT ONLY 13 OF THE AMERICANS COULD IDENTIFY HIM THAT WAS THE LOWEST PERCENTAGE FOR ANY OF THE EIGHT NATIONS MEXICO AND SPAIN WITH LARGE POPULATIONS PREOCCUPIED WITH MERELY SQUEEZING OUT A LIVING SCORED SLIGHTLY HIGHER THAN AMERICANS ON BOUTROSGHALI THE STUDY COVERING 10000 PEOPLE IN BRITAIN CANADA FRANCE GERMANY ITALY MEXICO SPAIN AND THE US WAS CONDUCTED BY THE TIMES MIRROR CENTER FOR THE PEOPLE AND THE PRESS THE NEWSPAPERS EL PAIS IN SPAIN LIBERATION IN FRANCE LA REPUBBLICA OF ITALY AND EL NORTE OF MEXICO ASSISTED AS POLLS GO THIS ONE WAS CREDIBLE ENOUGH IF YOU ASSUME A REASONABLY SCIENTIFIC SELECTION OF THE CROSS SECTION POLLED THE RESPONDENTS WERE ASKED SIMPLE ONEANSWER QUESTIONS THIS PLUS THE FACT THAT NEWSPAPERS MAGAZINES AND BROADCASTING CHANNELS PROLIFERATE IN THE US MAKES THE POOR AMERICAN SHOWING ALL THE MORE REMARKABLE SOME 3 OF THE GERMANS GOT ALL FIVE QUESTIONS WRONG THAT COMPARES WITH 37 OF THE AMERICANS TELEVISION IS THE NEWS MEDIUM MOST PEOPLE CITE AS THEIR MAIN SOURCE OF INFORMATION ABOUT THE WORLD CLEARLY AMERICANS TAKE SECOND PLACE TO FEW PEOPLE WHEN IT COMES TO THE TIME SPENT GAZING AT THE TUBE WHETHER A PEOPLE SHOULD BE CONDEMNED FOR CHOOSING INSTINCTIVELY TO WATCH SAY THE UNIVERSITY OF ARKANSAS COMPETE IN THE FINAL FOUR RATHER THAN SOME POLITICIAN'S SPEECH IS A DEBATABLE POINT BUT IT REMAINS TRUE THAT AMERICAN TV NETWORKS OFTEN PLACE MORE IMPORTANCE ON THE PERSONALITIES OF THE ANCHORFOLK THAN ON THE QUALITY OF THEIR REPORTING AND WE SUPPOSE IT'S TRUE THAT IF THE AMERICAN SAMPLE INEVITABLY INCLUDED RESPONDENTS ADDICTED TO OPRAH AND DONAHUE THEIR KNOWLEDGE OF ARCANE SOCIAL RELATIONSHIPS MIGHT EXCEED THEIR GRASP OF THE REAL WORLD A NO LESS TROUBLING EXPLANATION MIGHT BE SOUGHT IN WONDERING WHAT HAS HAPPENED TO THE QUALITY OF AMERICAN PUBLIC EDUCATION THESE PAST 20 YEARS WHAT WITH ALL THE CURRENT EMPHASIS ON GRADE SCHOOLERS LEARNING ABOUT CONDOM TECHNOLOGY LOCAL POLLUTERS THE RAPE OF THE AMERICAN WEST CHEMICALLY POISONED APPLES AND THE LIKE WHO HAS TIME TO LEARN MUCH OF ANYTHING ABOUT BORIS WHAT'SHISNAME IN WHATEVER THEY CALL THAT PLACE NOWADAYS 9403300044 940330 CREDIT MARKETS BOND PRICES TUMBLE AS YIELD ON 30YEAR ISSUE CLIMBS TO 706 HIGHEST SINCE FEBRUARY 1993 BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IT'S NO FUN BEING A BOND INVESTOR THESE DAYS ESPECIALLY AFTER THE PUMMELING THE MARKET TOOK YESTERDAY PUSHING YIELDS TO THEIR HIGHEST LEVELS IN MORE THAN A YEAR BOND PRICES PLUNGED AS A BEARISH MALAISE CONTINUED TO PLAGUE INVESTORS MORE OF WHOM ARE UNWILLING TO BET WHEN THE SELLING WILL END THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN A POINT OR MORE THAN 10 FOR A BOND WITH 1000 FACE VALUE TO 89 28/32 TO YIELD 706 THE HIGHEST YIELD SINCE FEBRUARY OF LAST YEAR NEWS OF GREATER CONSUMER CONFIDENCE PROVIDED AN EXCUSE TO UNLOAD HOLDINGS YESTERDAY BUT TRADERS WERE QUICK TO SAY THAT THERE WAS MORE BEHIND THE SELLOFF THAN THAT ONE REPORT BESIDES COMMODITY PRICES DROPPED AGAIN YESTERDAY AND THAT SHOULD BE GOOD NEWS FOR BOND INVESTORS FALLING COMMODITY PRICES ARE SUPPOSED TO BE A SIGN OF FALLING INFLATION AND BOND INVESTORS HATE INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN IT'S A CATCH22 THE MARKET WILL NOT STABILIZE AND BEGIN TO REBOUND UNTIL THE BUYERS COME IN AND NO BUYERS WILL COME IN UNTIL THE MARKET BEGINS TO STABILIZE AND REBOUND SAID JOHN CANAVAN AN ANALYST AT STONE & MCCARTHY RESEARCH ASSOCIATES OF PRINCETON NJ THE MARKET IS JUST EXTREMELY BEARISH SAID MR CANAVAN EVEN THOUGH INFLATION REMAINS WELL IN CHECK AT THE MOMENT EFFORTS BY THE FEDERAL RESERVE TO CALM THE MARKETS BY ANNOUNCING ITS DECISION TO RAISE SHORTTERM INTEREST RATES AND NIP INFLATIONARY PRESSURES IN THE BUD SEEM TO HAVE BEEN FOR NAUGHT LAST WEEK THE FED RAISED THE FEDERAL FUNDS RATE WHICH BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS TO 35 FROM 325 BOND PRICES RALLIED FOR A DAY AND THEN STARTED DROPPING AGAIN THIS FOLLOWED A FED MOVE TO HIKE THE FUNDS RATE TO 325 FROM 3 ON FEB 4 A DECISION WHICH STARTED THE SELLOFF IN THE BOND MARKETS THE STOCK MARKET WAS ALSO HIT HARD YESTERDAY THE DOW JONES INDUSTRIAL AVERAGE DROPPED 6333 POINTS TO FINISH AT 369902 ANOTHER SIGN OF SINKING CONFIDENCE IN THE STOCK AND BOND MARKETS AND THE FED'S ABILITY TO SOOTHE FEARS OF INFLATIONARY PRESSURES WAS THE DECISION YESTERDAY BY DEAN WITTER REYNOLDS INC A SUBSIDIARY OF DEAN WITTER DISCOVER & CO AND SMITH BARNEY SHEARSON INC TO TRIM STOCK AND BOND HOLDINGS AND INCREASE CASH POSITIONS SMITH BARNEY RECOMMENDED THAT INVESTORS CUT THEIR STOCK HOLDINGS TO 50 OF THEIR INVESTMENTS FROM 55 WHILE CUTTING BOND HOLDINGS TO 25 FROM 30 AND INCREASING CASH HOLDINGS TO 25 FROM 15 DEAN WITTER RECOMMENDED THAT INVESTORS CUT THEIR BOND HOLDINGS TO 25 FROM 35 AND CUT THEIR STOCK HOLDINGS TO 50 FROM 60 WHILE INCREASING CASH HOLDINGS TO 25 FROM JUST 5 DEAN WITTER HAD RAISED ITS BOND ALLOCATION EARLIER THIS MONTH IN ANTICIPATION OF RECOVERY THE MARKET HAS DIVORCED ITSELF FROM REALITY SAID JERRY ZUKOWSKI ECONOMIST AT PAINEWEBBER INC TRADERS SAID SELLING TIED TO ENDOFQUARTER BALANCE SHEET ADJUSTMENTS ADDED TO THE WEIGHT ON THE BOND MARKET YESTERDAY NO SINGLE REPORT CAUSED THE SELLOFF ALTHOUGH SOME TRADERS POINTED TO A SOLID READING ON CONSUMER CONFIDENCE THE CONFERENCE BOARD REPORTED ITS CONSUMER SENTIMENT INDEX ROSE TO 867 IN MARCH FROM 799 IN FEBRUARY BUT PARTICIPANTS SAID THE CONFIDENCE DATA SIMPLY PROVIDED AN EXCUSE FOR SELLING IT JUST SPEAKS TO HOW WEAK THE MARKET IS AND HOW BAD SENTIMENT IS SAID FRANK RICCARDI PORTFOLIO MANAGER AT SOCIETY ASSET MANAGEMENT INC A SECOND CONSECUTIVE DAY OF DECLINING COMMODITY PRICES DID LITTLE TO SUPPORT BOND PRICES IN FACT PLAYERS SAID THE BOND MARKET'S TEPID RESPONSE TO STEEP DECLINES IN COMMODITIES MONDAY PLANTED THE SEEDS FOR YESTERDAY'S DROP ADDING TO THE WEIGHT ON THE BOND MARKET WERE PRESSURES TIED TO THE END OF THE FIRST QUARTER PORTFOLIO MANAGERS WANT TO HAVE A GOODLOOKING PORTFOLIO FOR QUARTER END SAID JOHN KALLIS A SENIOR VICE PRESIDENT AT STATE STREET RESEARCH & MANAGEMENT CO THIS TIME AROUND THAT MEANS SELLING OF LONGERDATED TREASURYS IN PART BECAUSE OF THE IMPACT THAT RISING INTEREST RATES HAD ON THE MORTGAGEBACKED SECURITIES MARKET PORTFOLIO MANAGERS SAID AS LONGTERM YIELDS HAVE RISEN PREPAYMENTS HAVE SLOWED AND AS A RESULT THE EFFECTIVE MATURITIES ON MANY MORTGAGEBACKED SECURITIES HAVE RISEN IN A BEAR MARKET THAT POSES A PROBLEM FOR PORTFOLIO MANAGERS WHO ARE TRYING TO SHORTEN THE DURATION OF THEIR HOLDINGS MORTGAGES HAVE BEEN EXTENDING THEIR DURATIONS BUT AT QUARTER END PEOPLE WANT TO HAVE A SHORTER DURATION MR KALLIS SAID SO THEY SELL WHAT'S LIQUID AND WHAT'S LIQUID IS TREASURYS DEALERS MEANWHILE DON'T WANT TO SHOW HUGE EXPOSURES TO THE MARKET AS THE QUARTER WINDS DOWN AS SOON AS THEY BUY SECURITIES FROM AN INVESTOR THEY EITHER TRY TO UNLOAD THE ISSUE BACK INTO THE MARKET OR ATTEMPT TO HEDGE BY SELLING TREASURYS THE END RESULT IS THE TYPE OF DOWNWARD SPIRAL IN PRICES THAT TOOK PLACE YESTERDAY PLAYERS SAID THE DEALERS ARE TRYING TO KEEP THEIR INVENTORIES DOWN SO IT CREATES A GAME OF HOT POTATO IN THE BOND MARKET SAID MR ZUKOWSKI OF PAINEWEBBER HERE ARE RESULTS OF THIS WEEK'S TREASURY AUCTION OF 13WEEK AND 26WEEK BILLS AND THE RESULTS OF YESTERDAY'S AUCTION OF 21DAY CASH MANAGEMENT BILLS HERE ARE THE DETAILS OF MONDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED MARCH 31 THE 13WEEK BILLS MATURE JUNE 30 1994 AND THE 26WEEK BILLS MATURE SEPT 29 1994 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 MARCH 31 AND MATURE APRIL 21 1994 ONE CASUALTY OF SOARING YIELDS YESTERDAY WAS A PLANNED BOND OFFERING FROM NORTHWEST AIRLINES LATE YESTERDAY THE COMPANY SAID IT HAD DELAYED ITS 350 MILLION OFFERING OF 10YEAR JUNK BONDS WHICH HAD ORIGINALLY BEEN SCHEDULED FOR LAST FRIDAY BEFORE BEING DELAYED UNTIL EARLY THIS WEEK MARKET CONDITIONS HAVE DETERIORATED SUBSTANTIALLY SINCE THE NORTHWEST OFFERING WAS REGISTERED FEB 2 THE COMPANY SAID IN A STATEMENT RECENT CONCERNS ABOUT THE ECONOMY HAVE FORCED UP INTEREST RATES THE MARKET HAS SEEN A NET OUTFLOW OF CAPITAL FROM BOND FUNDS AND WITH SOME 25 BILLION IN HIGHYIELD ISSUES COMING TO MARKET IN THE NEAR FUTURE WE HAVE DECIDED THAT THIS IS NOT THE BEST TIME TO SELL BONDS IN WHAT HAS BECOME A DIFFICULT MARKET ENVIRONMENT THE COMPANY DID NOT SPECIFY IN ITS STATEMENT WHEN IT WOULD RETURN TO THE MARKET IT DID SAY IT WOULD CONTINUE TO MONITOR THE MARKET AND PROCEED WHEN CONDITIONS ARE APPROPRIATE PRICES OF MANY JUNK BONDS DROPPED BY MORE THAN A POINT YESTERDAY AND DEMAND FOR THE LONG LIST OF NEW ISSUES SCHEDULED TO COME TO MARKET THIS WEAK REMAINED WEAK IN ORDER TO ATTRACT SUFFICIENT DEMAND TO COMPLETE A DEAL IN SUCH AN UNFAVORABLE ENVIRONMENT UNDERWRITERS OFTEN HAVE TO BOOST YIELDS THRIFTY PAYLESS INC A SUBSIDIARY OF TPH CORP WAS EXPECTED TO SELL 600 MILLION OF JUNK BONDS YESTERDAY INSTEAD THE COMPANY BOOSTED THE EXPECTED YIELD ON ITS 600 MILLION TWOPART OFFERING THROUGH LEAD MANAGER DONALDSON LUFKIN & JENRETTE SECURITIES CORP THRIFTY PAYLESS IS MARKETING 200 MILLION OF NINEYEAR SENIOR NOTES WITH AN 11 YIELD ORIGINALLY THE YIELD WAS EXPECTED TO BE BETWEEN 10 TO 1025 ACCORDING TO SYNDICATE OFFICIALS THE YIELD ON THE SECOND TRANCHE OF THRIFTY'S OFFERING 400 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES WAS RAISED TO 12 UP FROM AN EXPECTED 1075 TO 11 PRICES IN THE INVESTMENTGRADE MARKET FELL BY NEARLY A POINT IN MODERATE TRADING FEW NEW ISSUES WERE PRICED IN THE INVESTMENTGRADE MARKET AS ISSUERS MADE LAST MINUTE CHANGES TO THEIR DEALS ANOTHER DAY OF SELLING IN MUNICIPAL BONDS SLICED 3/4 POINT OR MORE OFF PRICES OF SECONDARY MARKET ISSUES AND FORCED UNDERWRITERS TO RAISE YIELDS FOR SEVERAL NEW ISSUES TO ATTRACT BUYERS WITH DEMAND RUNNING LOW UNDERWRITERS HAD TO SWEETEN YIELDS FOR NEW ISSUES INCLUDING NEW YORK STATE ENVIRONMENTAL FACILITIES CORP'S 717 MILLION SERIES 1994A STATE WATER POLLUTION CONTROL REVOLVING FUND REVENUE BONDS THE ISSUE WAS PRICED BY A GOLDMAN SACHS GROUP FOLLOWING REPRICING AT WHICH YIELDS WERE RAISED FIVE TO 10 BASIS POINTS YIELDS RANGED FROM 355 IN 1995 TO 619 IN 2014 AND 2015 A BASIS POINT IS A HUNDREDTH OF A PERCENTAGE POINT GOLDMAN SACHS RAISED YIELDS AS MUCH AS EIGHT BASIS POINTS FOR ANOTHER ISSUE IT WAS LEAD MANAGER ON YESTERDAY THE MICHIGAN MUNICIPAL BOND AUTHORITY'S 1098 MILLION SERIES 1994A LOCAL GOVERNMENT LOAN PROGRAM REVENUE BONDS IN OTHER NEWISSUE ACTIVITY A MERRILL LYNCH GROUP PRICED HONOLULU'S 150 MILLION SERIES 1994A GENERAL OBLIGATION BONDS WITH YIELDS THAT RANGED FROM 460 IN 1998 TO 590 IN 2013 AND 2014 PRICES OF MORTGAGE SECURITIES DROPPED WE'RE SEEING CONSISTENT STEADY SELLING WITH ALL COUPONS GETTING HIT SAID CHRISTOPHER FLANAGAN COHEAD OF MORTGAGE RESEARCH AT MERRILL LYNCH & CO THE YIELD ON THE 75 COUPON FROM GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ENDED 107 BASIS POINTS ABOVE COMPARABLE TREASURYS AND THE 7 COUPON'S YIELD WAS 108 POINTS ABOVE TREASURYS FEDERAL NATIONAL MORTGAGE ASSOCITION'S 75 YIELD ENDED 93 BASIS POINTS ABOVE THAT OF THE BENCHMARK 10YEAR TREASURY NOTE SOMEWHAT TIGHTER THAN MONDAY'S 106 BASIS POINT SPREAD LAUREN YOUNG CONTRIBUTED TO THIS ARTICLE 9403300043 940330 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 1/4 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/2 HIGH 3 5/16 LOW 3 5/16 NEAR CLOSING BID 3 7/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 1/4 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 360 30 TO 44 DAYS 363 45 TO 59 DAYS 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 367 30 DAYS 376 60 DAYS 387 90 DAYS CERTIFICATES OF DEPOSIT 296 ONE MONTH 304 TWO MONTHS 328 THREE MONTHS 356 SIX MONTHS 392 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 380 THREE MONTHS 410 SIX MONTHS BANKERS ACCEPTANCES 357 30 DAYS 362 60 DAYS 373 90 DAYS 385 120 DAYS 395 150 DAYS 399 180 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 3/4 3 5/8 TWO MONTHS 3 7/8 3 1/2 THREE MONTHS 4 3 7/8 FOUR MONTHS 4 1/8 4 FIVE MONTHS 4 3/16 4 1/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 11/16 ONE MONTH 3 7/8 THREE MONTHS 4 3/16 SIX MONTHS 4 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 625 GERMANY 575 JAPAN 3 SWITZERLAND 750 BRITAIN 525 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY 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 808 60 DAYS 815 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 801 60 DAYS 808 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 590 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 284 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403300042 940330 BRIEF ECONOMIC BOOM SEEN FROM QUAKE IN CALIFORNIA LOS ANGELES THE JAN 17 EARTHQUAKE THAT ROCKED LOS ANGELES MAY HAVE BEEN BAD NEWS FOR RESIDENTS BUT IT WILL PROVIDE A BRIEF AND MUCHNEEDED ECONOMIC BOOST ACCORDING TO AN INFLUENTIAL CALIFORNIA FORECASTING GROUP THE UCLA BUSINESS FORECASTING PROJECT AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES SAYS IN A PROJECTION TO BE RELEASED TODAY THAT THE 67 MAGNITUDE SHOCK GETS CREDIT FOR A ONEQUARTER JUMPSTART TO RECOVERY BASED IN PART ON ANALYSIS OF OTHER NATURAL DISASTERS INCLUDING THE EFFECTS IN FLORIDA OF 1992'S HURRICANE ANDREW THE UCLA GROUP CONCLUDES THAT EARTHQUAKE REBUILDING WILL ADD 20000 JOBS TO THE CALIFORNIA ECONOMY OVER THE NEXT YEAR IN EFFECT SAYS LARRY KIMBELL DIRECTOR OF THE FORECASTING PROJECT LOSSES IN THE TEMBLOR SPARKED A SUDDEN BURST OF UNANTICIPATED DEMAND PROMPTING NOT ONLY REPAIRS BUT A MODEST RETAIL SURGE AS HOUSEHOLD GOODS ARE REPLACED OTHER FACTORS INCLUDING A STRONGERTHANEXPECTED NATIONAL ECONOMY ALSO PROMPTED THE REVISED ANALYSIS THAT CALIFORNIA IS CURRENTLY IN A VERY SLOW RECOVERY ONE QUARTER SOONER THAN EXPECTED MR KIMBELL SAID OVERALL AFTER BRIEFLY ACCELERATING DEMAND WE EXPECT THAT THE EARTHQUAKE WILL HAVE A VERY SMALL BUT NEGATIVE IMPACT ON THE ECONOMY OF LOS ANGELES MR KIMBELL SAYS 9403300041 940330 INTERNATIONAL BRIEF CIBAGEIGY AG SWISS PHARMACEUTICAL FIRM POSTS 17 PROFIT RISE FOR '93 CIBAGEIGY AG ANNOUNCED A 17 RISE IN 1993 PROFIT CHAIRMAN ALEX KRAUER DESCRIBED THE PERFORMANCE OF THE BIG SWISS PHARMACEUTICALCHEMICAL COMPANY AS GRATIFYING AND SAID HE WAS CONFIDENT OF A CONVINCING PERFORMANCE AND GOOD RESULTS IN 1994 NET INCOME FOR 1993 ROSE TO 178 BILLION SWISS FRANCS 125 BILLION FROM 152 BILLION FRANCS IN 1992 SALES ROSE 2 TO 2265 BILLION FRANCS FROM 222 BILLION FRANCS THIS IS THE THIRD YEAR THAT CIBA HAS RECORDED DOUBLEDIGIT PROFIT GROWTH SINCE EARNINGS PLUMMETED 34 IN 1990 CIBA HAS STREAMLINED OPERATIONS TO CUT COSTS AND BETTER FOCUS ITS HEALTHCARE AGROCHEMICAL AND INDUSTRIAL CHEMICALS OPERATIONS CIBA'S HEALTHCARE SECTOR WHICH INCLUDES DRUGS SELFMEDICATION DIAGNOSTICS AND EYE CARE RECORDED THE HIGHEST SALES GROWTH WITH A 6 INCREASE TO 92 BILLION FRANCS HEALTH CARE HAS THE BIGGEST SHARE OF SALES AND ACCOUNTED FOR ABOUT 68 OF OPERATING PROFIT 9403300040 940330 ZEDILLO FOLLOWS SALINAS MODEL FOR MEXICO BY DAVID ASMAN WHEN LUIS DONALDO COLOSIO WAS ASSASSINATED LAST WEEK THE WORLD WONDERED WHETHER HIS DEATH REFLECTED A REVERSION TO MORE TRADITIONAL AND ANTIMARKET POWER POLITICS RUMORS TO THAT EFFECT ARE SWEEPING THE CAPITAL AS FACTS TRICKLE IN ABOUT THE MURDERER AND POSSIBLE ACCOMPLICES THERE WAS EVEN TALK THAT TO QUELL DISSENT THE RULING INSTITUTIONAL REVOLUTIONARY PARTY OR PRI WOULD REPLACE ITS SLAIN STANDARDBEARER WITH SOMEONE MORE ATTUNE TO THE INTERESTS OF THE OLD GUARD THAT'S WHY THE PRI'S DECISION TO NAME 42YEAROLD ERNESTO ZEDILLO AS MR COLOSIO'S SUCCESSOR COMES AS SUCH A RELIEF TO MARKETS YESTERDAY THE MEXICAN MARKET CLOSED UP WITH THE PESO UNCHANGED MEXICAN FUNDS IN THE US DROPPED BUT ONLY WHEN THE DOW JONES INDUSTRIAL AVERAGE MOVED DOWNWARD IN THE LATE AFTERNOON MR ZEDILLO SHARES PRESIDENT CARLOS SALINAS'S VISION OF A MODERN ECONOMY AND A MORE FEDERALIST REPUBLIC THAT FACT SHOULD FORESTALL A FLIGHT OF CAPITAL FEARED BY EMERGINGMARKETS INVESTORS THE CHOICE OF MR ZEDILLO BOLSTERS THE CONCLUSION THAT MR COLOSIO'S ASSASSINATION WILL NOT SUCCEED IN REVERSING THE RULING PARTY'S COMMITMENT TO A MORE OPEN SOCIAL AND ECONOMIC STRUCTURE MODERNIZATION IN MEXICO HAS DEVELOPED ITS OWN MOMENTUM AND IT WOULD TAKE A MASSIVELY COORDINATED POLITICAL PLOT TO BREAK THAT MOMENTUM IN FACT THE GENIUS OF PRESIDENT SALINAS'S PLAN TO MOVE MEXICO FROM THE THIRD WORLD TO THE FIRST WORLD IS THAT IT IS MORE THAN AN ECONOMIC PROGRAM THE ECONOMIC POLICIES OF DEREGULATION PRIVATIZATION AND INDIVIDUAL INITIATIVE ARE ROOTED IN AN EFFORT TO DECENTRALIZE THE COUNTRY'S POLITICAL AND SOCIAL STRUCTURE THAT SUCH AN EFFORT CREATED ENEMIES AMONG THE DINOSAURS OF THE PRI WAS QUITE APPARENT TO MR COLOSIO AS PRESIDENT OF THE PRI MR COLOSIO HAD THE HERCULEAN CHALLENGE OF JUSTIFYING THIS NEW FEDERALISM TO A MASS OF PARTY LEADERS WHO WERE OFTEN CHOSEN BY PARTY OFFICIALS IN THE CAPITAL TO RULE THEIR COMMUNITIES WITH ALMOST UNLIMITED AUTHORITY MR COLOSIO HAD TROUBLE CUTTING THROUGH THE OLD HIERARCHY IT'S TOUGH TO EXPLAIN ALL THIS TO THE GRASS ROOTS HE TOLD ME IN 1992 INDEED IN SOME WAYS MR ZEDILLO UNDERSTANDS THIS DECENTRALIZATION PROCESS BETTER THAN MR COLOSIO DID MR COLOSIO ALWAYS GAVE THE IMPRESSION OF ACTING MORE ON ORDERS THAN ON POLITICAL CONVICTION MR ZEDILLO BY CONTRAST ACTUALLY WORKS FROM THE STANDPOINT OF SOMEONE WHO PUSHED SUCCESSFULLY FOR DECENTRALIZATION FIRST AS MINISTER OF THE OFFICE OF PLANNING AND BUDGET AND THEN AS MINISTER OF EDUCATION A DOCTORATE IN ECONOMICS FROM YALE AS WELL AS TRAINING AT MEXICO'S CENTRAL BANK BANCO DE MEXICO PREPARED MR ZEDILLO AS MINISTER OF PLANNING AND BUDGET A JOB HE HELD FROM 1989 UNTIL PRESIDENT SALINAS MERGED THAT MINISTRY WITH PEDRO ASPE'S FINANCE MINISTRY IN 1991 MR ZEDILLO HELPED PIONEER THE SOLIDARITY ANTIPOVERTY PROGRAM WHEN ASKED TO DESCRIBE SOLIDARITY TO A GROUP OF JOURNALISTS AND BUSINESSMEN IN NEW YORK THREE YEARS AGO MR ZEDILLO HELD THE QUESTIONERS RAPT FOR ABOUT 20 MINUTES AS HE WENT ON IN JACK KEMP FASHION ABOUT THE NEED TO HALT POVERTY WITHOUT CREATING A SENSE OF DEPENDENCY AMONG AID RECIPIENTS AS MINISTER OF EDUCATION MR ZEDILLO MADE HIS MARK BY REPLACING RADICAL TEXTBOOKS LOADED WITH MARXIST THEMES WITH MORE MODERATE BOOKS CRITICS DIDN'T LIKE THE CREDIT THE BOOKS ASSIGNED TO MARKET FORCES THEY ALSO CHARGED THAT THE TEXT PRAISED MR SALINAS AND THE OLD DICTATOR PORFIRIO DIAZ TO AN UNSEEMLY DEGREE THE NOISE OF THIS DISCUSSION OBSCURED MR ZEDILLO'S BIGGEST CONTRIBUTION APPLYING RULES OF ACCOUNTABILITY TO THE NATIONAL EDUCATION SYSTEM PRIOR TO HIS TENURE MEXICAN TEACHERS WERE PROMOTED ON THE BASIS OF SENIORITY ALONE BUT AFTER A HUGE STRUGGLE WITH THE UNIONS MR ZEDILLO WAS ABLE TO LINK PERFORMANCE TO ADVANCEMENT SENIORITY NOW ACCOUNTS FOR JUST 15 OF THE DECISION TO INCREASE SALARIES OR OFFER PROMOTIONS AS FOR DECENTRALIZATION ALL MEXICAN SCHOOLS USED TO ANSWER DIRECTLY TO THE FEDERAL MINISTRY NOW ONLY MEXICO CITY SCHOOLS ARE UNDER FEDERAL CONTROL THE FEDS ALSO USED TO PROHIBIT PARENTS FROM PARTICIPATING IN SCHOOL POLICIES MR ZEDILLO CHANGED THIS BY ORGANIZING COMMITTEES COMPRISING PARENTS AND TEACHERS TO HELP RESTRUCTURE THE SCHOOLS THERE IS A GROWING DEMAND WITHIN MEXICO FOR DECENTRALIZATION MR ZEDILLO TOLD ME IN AN INTERVIEW LATE LAST YEAR AND EDUCATION WILL PROVIDE THEM WITH A PRACTICAL EXAMPLE OF HOW TO ACTUALIZE THIS DESIRE BUT DOES MR ZEDILLO HAVE THE SAVVY OR THE RUTHLESSNESS TO BE PRESIDENT HE HAS BEEN CRITICIZED FOR LACK OF EXPERIENCE IN ELECTORAL POLITICS SOME SAY HE WILL HAVE DIFFICULTY FACING OFF WITH THE POLITICAL OPPOSITION THE NATIONAL ACTION PARTY AND THE DEMOCRATIC REVOLUTION PARTY THERE IS ALSO THE ISSUE OF THE PRI'S OWN DISAFFECTED MEMBERS YET THERE IS A SUCCESSFUL MODEL THAT PRECEDES MR ZEDILLO WHEN MR SALINAS WAS ELECTED PRESIDENT HE TOO HAD RELATIVELY LITTLE EXPERIENCE BUT HE WAS A QUICK LEARNER IN OFFICE AND HAS HEADED WHAT IS ARGUABLY THE MOST SUCCESSFUL MEXICAN GOVERNMENT IN DECADES PERHAPS MOVING YOUR WAY UP THROUGH THE PRI HIERARCHY IS AS GOOD A LESSON IN POWER POLITICS AS STUMPING ON THE CAMPAIGN TRAIL WHILE MR ZEDILLO HAS AN EMPTY ELECTORAL PROFILE HE CERTAINLY DOESN'T LACK IN THE VISION THING NOR IN THE CAPACITY TO CARRY IT OUT WE CAN ONLY PRAY THAT MEXICAN VOTERS WILL NOW BE FREE TO CHOOSE THE VISION OF THEIR LIKING EITHER MR ZEDILLO'S OR THAT OF ONE OF HIS OPPONENTS WITHOUT THE PRESSURE OF ANYTHING OTHER THAN THEIR OWN CONSCIENCE MR ASMAN EDITS THE JOURNAL'S AMERICAS COLUMN 9403300039 940330 BUSINESS BRIEF BAKER HUGHES INC CHEMICALS UNIT PLANS SALE OF MINERAL HANDLING GROUP BAKER PERFORMANCE CHEMICALS INC A UNIT OF BAKER HUGHES INC SAID IT WILL SHED ITS MINERAL HANDLING GROUP BAKER PERFORMANCE SAID IN HOUSTON THAT IT WAS SELLING THE GROUP TO FOCUS ON ITS CORE SPECIALTY CHEMICAL BUSINESSES IN THE OIL AND GAS INDUSTRY THE MOVE IS IN KEEPING WITH THE PARENT COMPANY'S RECENT DECISION TO CONCENTRATE ON ITS CORE OIL GAS AND PROCESS INDUSTRIES THE GROUP HAS 55 EMPLOYEES BASED IN FOUR STATES AND TWO MANUFACTURING PLANTS A SPOKESMAN SAID BAKER PERFORMANCE HAD REVENUE LAST YEAR OF LESS THAN 20 MILLION THE COMPANY SAID IT HIRED TEXAS COMMERCE BANK OF HOUSTON TO ASSIST IN THE SALE THE MINERAL GROUP MARKETS DUST SUPPRESSANTS AND FREEZECONDITIONING AGENTS TO THE COAL MINING AND MINERAL TRANSPORTATION INDUSTRY 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 9403300038 940330 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CENTENNIAL BANCORP A OFFERING OF UP TO 92 MILLION PRINCIPAL AMOUNT OF CONVERTIBLE EXCHANGEABLE REDEEMABLE DEBENTURES WITH AN OVERALLOTMENT OPTION OF 12 MILLION VIA DAIN BOSWORTH INC AND BLACK & CO MAGMA COPPER CO AN OFFERING OF UP TO 300 MILLION IN DEBT OR EQUITY SECURITIES AND AN OFFERING OF 23 MILLION COMMON SHARES PLUS ONE MILLION UNDERLYING WARRANTS ISSUED TO PREFERRED STOCK BUYERS DURING A 1988 RECAPITALIZATION NORTHFIELD LABORATORIES INC AN INITIAL OFFERING OF 25 MILLION COMMON SHARES AT AN EXPECTED 12 TO 14 A SHARE VIA ROBERTSON STEPHENS & CO AND VECTOR SECURITIES INTERNATIONAL INC RAYONIER INC A SHELF OFFERING OF 150 MILLION OF DEBT SECURITIES VIA SALOMON BROTHERS INC BT SECURITIES CORP AND MORGAN STANLEY & CO SABER SOFTWARE CORP A PROPOSED INITIAL OFFERING OF 1800000 COMMON SHARES AT AN EXPECTED 911 A SHARE WITH AN OVERALLOTMENT OPTION TO BUY AN ADDITIONAL 270000 SHARES VIA WESSELS ARNOLD & HENDERSON AND TUCKER ANTHONY INC US RADIO INC AN INITIAL OFFERING OF THREE MILLION CLASS A COMMON SHARES AT AN EXPECTED 12 TO 14 A SHARE WITH AN OVERALLOTMENT OPTION FOR 450000 ADDITIONAL SHARES VIA OPPENHEIMER & CO AND PAINEWEBBER INC 9403300037 940330 BUSINESS BRIEF QUICK & REILLY GROUP INC PROFIT ROSE 92 FOR QUARTER ON STRONG TRADING ACTIVITY QUICK & REILLY GROUP INC SAID STRONG TRADING ACTIVITY AT ITS BROKERAGE UNIT CONTRIBUTED TO A 92 INCREASE IN THE COMPANY'S FISCAL FOURTHQUARTER EARNINGS FOR THE QUARTER ENDED FEB 28 THE FINANCIALSERVICES COMPANY REPORTED NET INCOME OF 121 MILLION OR 108 A SHARE UP FROM 111 MILLION OR 1 A SHARE A YEAR EARLIER REVENUE INCREASED 21 TO 75 MILLION FROM 619 MILLION THE COMPANY SAID ITS SPECIALIST UNIT JJC SPECIALIST CORP ALSO HAD RECORD TRADING AND COMMISSION INCOME THE SPECIALIST GROUP MAKES MARKETS IN THE STOCKS OF 131 COMPANIES FOR THE YEAR THE COMPANY'S NET INCOME ROSE 48 TO 425 MILLION OR 379 A SHARE FROM 287 MILLION OR 263 A SHARE IN FISCAL 1993 REVENUE INCREASED 35 TO 2652 MILLION FROM 1959 MILLION 9403300036 940330 BUSINESS BRIEF READER'S DIGEST ASSOCIATION INC NEW CHILDREN'S BOOK UNIT GROWS FROM JOSHUA MORRIS READER'S DIGEST ASSOCIATION INC LAUNCHED A NEW CHILDREN'S BOOK AND ENTERTAINMENT DIVISION TO BE CALLED READER'S DIGEST YOUNG FAMILIES INC COCHAIRMEN OF THE NEW SUBSIDIARY ARE JOSHUA GASPERO AND MIKE MORRIS BOTH 51 YEARS OLD COFOUNDERS OF CHILDREN'S BOOK PUBLISHER JOSHUA MORRIS WHICH WAS ACQUIRED BY READER'S DIGEST IN 1991 BOOKS WILL CONTINUE TO BE PUBLISHED UNDER THE JOSHUA MORRIS NAME AS WELL AS UNDER EXISTING NAMES LIKE READER'S DIGEST KIDS WISHING WELL AND WILTON HOUSE THE OPERATION WILL BE BASED IN WILTON CONN ALTHOUGH THE PUBLISHING COMPANY BASED IN PLEASANTVILLE NY GETS NEARLY HALF ITS ANNUAL REVENUE OF 287 BILLION FROM BOOKS IT HAS BEEN RELATIVELY SMALL IN THE AREA OF CHILDREN'S BOOKS A SPOKESWOMAN SAID THE NEW SUBSIDIARY WILL PUBLISH ABOUT 40 TITLES IN 1994 UP FROM 37 CHILDREN'S TITLES PUBLISHED BY THE PARENT LAST YEAR 9403300035 940330 BUSINESS BRIEF INTERSTATE BAKERIES CORP NATIONAL BAKING FIRM POSTS LOSS FOR FISCAL THIRD QUARTER INTERSTATE BAKERIES CORP REPORTED A FISCAL THIRDQUARTER LOSS OF 25 MILLION OR 12 CENTS A SHARE REFLECTING A BAKERY SWAP AN ENVIRONMENTAL PROBLEM AND LOWER SALES INTERSTATE OF KANSAS CITY MO SAID THE LOSS INCLUDED A ONETIME PRETAX CHARGE OF 94 MILLION OR 28 CENTS A SHARE COVERING ITS EXCHANGE OF A DOLLY MADISON BAKERY IN LOS ANGELES FOR A WONDER BREAD BAKERY IN TAMPA FLA OWNED BY RALSTON PURINA CO'S CONTINENTAL BAKING GROUP ABOUT 2 MILLION OF THE CHARGE INCREASED RESERVES FOR POTENTIAL ENVIRONMENTAL LIABILITY ON UNDERGROUND STORAGE TANKS AT A GLENDALE CALIF FACILITY THE COMPANY EARNED 5 MILLION OR 24 CENTS A SHARE IN THE SAME PERIOD LAST YEAR SALES IN THE QUARTER SLIPPED 24 TO 3363 MILLION FROM 3446 MILLION A YEAR EARLIER INTERSTATE CLOSED AT 13125 DOWN 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9403300034 940330 MARKETING BRIEF NOTED ROTATING EMMY THE ACADEMY OF TELEVISION ARTS & SCIENCES VOTED TO HAVE ITS ANNUAL PRIMETIME EMMY AWARDS TELECAST RESUME ROTATING AMONG CAPITAL CITIES/ABC INC CBS INC GENERAL ELECTRIC CO'S NBC AND NEWS CORP'S FOX BEGINNING IN 1995 IN FEBRUARY 1993 THE ACADEMY AWARDED EXCLUSIVE RIGHTS TO THE TELECAST TO ABC FOR FOUR YEARS ANGERING THE COMPETING NETWORKS WHO BOYCOTTED LAST SEPTEMBER'S SHOW 9403300033 940330 BUSINESS BRIEF HYDROQUEBEC NEW YORK AUTHORITY VOTES TO CANCEL 5 BILLION CONTRACT IN A WIDELY ANTICIPATED MOVE THE NEW YORK POWER AUTHORITY VOTED TO CANCEL A 5 BILLION 20YEAR CONTRACT TO PURCHASE ELECTRICITY FROM HYDROQUEBEC THE AUTHORITY CITED SEVERAL REASONS FOR THE CANCELLATION INCLUDING CONCERNS ABOUT HYDROQUEBEC'S PLANNED POWER PROJECTS IN THE JAMES BAY REGION THE PROJECTS HAVE COME UNDER FIRE FROM ENVIRONMENTAL AND NATIVEPEOPLES ADVOCATES EARLIER THIS MONTH S DAVID FREEMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE POWER AUTHORITY TOLD A STATE ASSEMBLY ENVIRONMENTAL COMMITTEE THAT HE WOULD RECOMMEND CANCELLATION OF THE AGREEMENT HYDROQUEBEC CONSENTED THAT THE AGREEMENT NO LONGER MADE SENSE WITH THE CHANGING ELECTRICITY MARKET SPECIFICALLY FALLING POWER PRICES THE CONTRACT ALLOWED FOR EITHER PARTY TO CANCEL THE AGREEMENT BETWEEN MAY 30 1994 AND THE END OF THE YEAR THE CURRENT AGREEMENT BETWEEN HYDROQUEBEC AND THE POWER AUTHORITY RUNS THROUGH 1998 MEANWHILE CONSOLIDATED EDISON CO OF NEW YORK IS NEGOTIATING A POWER PURCHASE AGREEMENT DIRECTLY WITH HYDROQUEBEC 9403300032 940330 BUSINESS BRIEF INBRAND CORP THIRDQUARTER NET EXPECTED TO OUTDO ANALYSTS' ESTIMATE INBRAND CORP AIDED BY INCREASES IN SALES AMID STABLE PRICING OF ITS RAW MATERIALS WILL PROBABLY EXCEED ANALYSTS' FISCAL THIRDQUARTER ESTIMATES OF 25 CENTS A SHARE AND REPORT EARNINGS OF CLOSER TO 33 CENTS A SHARE GARNETT SMITH CHIEF EXECUTIVE OFFICER SAID LAST YEAR INBRAND REPORTED FISCAL THIRDQUARTER EARNINGS OF 19 CENTS A SHARE PRO FORMA THE MARIETTA GA COMPANY WENT PUBLIC SEPT 2 AT 14 A SHARE AND IS NOW TRADING AT ABOUT 22 A SHARE THE COMPANY WHICH PROVIDES DISPOSABLE ADULTINCONTINENCE PRODUCTS EXPECTS TO REPORT THAT EARNINGS FOR THE FISCAL THIRD QUARTER ENDING APRIL 2 INCREASED NEARLY 80 TO APPROXIMATELY 18 MILLION FROM 1 MILLION A YEAR EARLIER MR SMITH SAID INBRAND WILL REPORT SALES FOR THE QUARTER OF ABOUT 185 MILLION UP MORE THAN 20 FROM LAST YEAR'S 152 MILLION MR SMITH SAID OBVIOUSLY WE'VE HAD GOOD SALES MOMENTUM MR SMITH SAID AND WE'VE CONTINUED TO HAVE VIRTUALLY STABLE RAW MATERIAL PRICING 9403300031 940330 BUSINESS BRIEF COMVERSE TECHNOLOGY INC NET INCOME DOUBLED IN '93 BUT STOCK FALLS ON OUTLOOK COMVERSE TECHNOLOGY INC WOODBURY NY SAID 1993 EARNINGS MORE THAN DOUBLED BUT ITS STOCK SLID 35 AFTER THE COMPANY SAID IT EXPECTS 1994 OPERATING RESULTS TO DECLINE FROM 1993 LEVELS THE MAKER OF COMPUTER AND TELECOMMUNICATIONS SYSTEMS REPORTED NET INCOME OF 127 MILLION OR 65 CENTS A SHARE UP FROM 57 MILLION OR 37 CENTS A SHARE IN 1992 REVENUE JUMPED 833 TO 704 MILLION FROM 384 MILLION COMVERSE DIDN'T REPORT SEPARATE FOURTHQUARTER RESULTS THE COMPANY'S SHARES TUMBLED 4875 TO CLOSE AT 9125 IN NASDAQ STOCK MARKET TRADING COMVERSE SAID SIGNIFICANT INCREASES IN PLANNED INVESTMENT IN OPERATIONS AND A LAG IN LARGE GOVERNMENTSYSTEMSDIVISION ORDERS ARE LIKELY TO CAUSE THIS YEAR'S OPERATING PROFIT TO DECLINE THE COMPANY SAID INVESTMENT INCREASES IN ITS OPERATIONS WILL HURT 1994 OPERATING RESULTS BUT IS MEANT TO POSITION THE COMPANY FOR LONGTERM LEADERSHIP IN ITS TARGETED MARKETS COMVERSE SAID THE MARKETS IT TARGETS WITH ITS TWO MAJOR PRODUCT LINES ARE EXPECTED TO HAVE STRONG GROWTH IN THE FORSEEABLE FUTURE 9403300030 940330 WHO'S NEWS COASTAL CORP COASTAL CORP HOUSTON DONALD H GULLQUIST WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT FINANCE OF THIS ENERGY HOLDING COMPANY MR GULLQUIST 50 YEARS OLD WAS PRESIDENT OF A UNIT OF ENRON CORP UNTIL 1990 9403300029 940330 WHO'S NEWS COMMONWEALTH ENERGY SYSTEM COMMONWEALTH ENERGY SYSTEM CAMBRIDGE MASS WILLIAM J O'BRIEN PREVIOUSLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HANOVER INSURANCE COS WORCESTER MASS WAS NAMED A TRUSTEE OF THIS UTILITY HOLDING COMPANY HE SUCCEEDS CALVIN SIEGAL WHO RETIRED FOR PERSONAL REASONS 9403300028 940330 FIRST LADY TURNED 1000 INVESTMENT INTO A 98000 PROFIT RECORDS SHOW BY MICHAEL K FRISBY AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE SAID HILLARY RODHAM CLINTON TURNED A 1000 INVESTMENT INTO A 98000 PROFIT ON THE COMMODITIES MARKET IN LESS THAN A YEAR BUT WHEN SHE BECAME PREGNANT SHE ABRUPTLY STOPPED TRADING BECAUSE IT WAS TOO NERVERACKING PROVIDING ITS MOST DETAILED ACCOUNT OF MRS CLINTON'S COMMODITIESTRADING ACTIVITIES THE WHITE HOUSE RELEASED TRADING RECORDS SHOWING THAT SHE MADE HER PROFIT IN A REFCO INC ACCOUNT BETWEEN OCTOBER 1978 AND JULY 1979 SEPARATELY GOVERNMENT INVESTIGATORS FEAR THAT MADISON GUARANTY SAVINGS & LOAN RECORDS MAY HAVE BEEN DESTROYED OR DISCARDED AFTER THE FAILED ARKANSAS THRIFT WAS ACQUIRED BY A MAJOR CLINTON POLITICAL FUNDRAISER AND OTHER ARKANSAS INVESTORS IN A BRIEFING ON MRS CLINTON'S INVESTMENTS AIDES ACKNOWLEDGED THAT SHE GOT ADVICE FROM JAMES BLAIR THEN THE OUTSIDE COUNSEL OF TYSON FOODS INC AND THAT HIS COUNSELING WAS IMPORTANT ALTHOUGH SHE ALSO TALKED WITH OTHERS AND DID HER OWN RESEARCH LISA CAPUTO THE PRESS SECRETARY FOR THE FIRST LADY AND JOHN PODESTA THE WHITE HOUSE STAFF SECRETARY ISSUED A STATEMENT SAYING MRS CLINTON PUT UP HER OWN MONEY INVESTED IT IN HER OWN ACCOUNTS AND ASSUMED THE FULL RISK OF LOSS AIDES ALSO SAID THAT MRS CLINTON WASN'T AWARE THAT HER MAIN BROKER ROBERT L RED BONE OF REFCO'S OFFICE IN SPRINGDALE ARK HAD BEEN DISCIPLINED BY REGULATORS FOR HIS TRADING PRACTICES INCLUDING ALLOCATING TRADES AMONG INVESTORS IN HIS BRANCH OFFICE AFTER HE HAD DETERMINED WHETHER THE TRADES WERE WINNERS OR LOSERS MRS CLINTON'S TRADES HAVE GENERATED ATTENTION BECAUSE SHE WAS SO SUCCESSFUL IN A SUCH A SHORT AMOUNT OF TIME EVEN THOUGH 75 OF THE PEOPLE WHO INVEST IN THE COMMODITIES MARKET LOSE MONEY A MONTH AFTER MRS CLINTON OPENED THE REFCO ACCOUNT IN 1978 HER HUSBAND WAS ELECTED GOVERNOR HER PROFIT HAS RAISED QUESTIONS OF WHETHER OUTSIDERS HELPED THE COUPLE MAKE MONEY AT A TIME WHEN THEY HAD GAINED IN PROMINENCE BUT WERE FAR FROM WEALTHY ACCORDING TO MR PODESTA MRS CLINTON OPENED A MARGIN ACCOUNT WITH REFCO IN OCTOBER 1978 WITH HER 1000 INVESTMENT HER FIRST TRADE RESULTED IN A PROFIT OF 5300 AND SHE REINVESTED HER EARNINGS IN SEVERAL TRANSACTIONS FOR THE REST OF 1978 HER TRADES RESULTED IN 49069 IN PROFITS WHICH WERE OFFSET BY LOSSES OF 22548 LEAVING A NET GAIN FOR THE YEAR OF 26541 IN THE FIRST SEVEN MONTHS OF 1979 HER TRADING PROFITS REACHED 109600 WHILE SHE SUSTAINED 36600 IN LOSSES LEAVING A NET GAIN OF 72996 IT WAS AT THAT POINT AIDES SAY THAT MRS CLINTON STOPPED TRADING BECAUSE SHE HAD JUST BECOME PREGNANT LATER THAT YEAR HOWEVER HER STOCKBROKER STEPHENS INC OF LITTLE ROCK WHICH TRADES THROUGH ACLI INTERNATIONAL PEAVEY CO AND CLAYTON BROKERAGE OPENED A COMMODITIES ACCOUNT IN HER NAME WITH A 5000 INVESTMENT AT ONE POINT HER ACCOUNT REACHED A 26894 PROFIT BUT BY THE TIME SHE CLOSED IT IN EARLY 1980 JUST AFTER HER DAUGHTER CHELSEA WAS BORN IT HAD A NET LOSS OF 1000 JACK SANDNER CHAIRMAN OF THE CHICAGO MERCANTILE EXCHANGE SAID MRS CLINTON TRADED IN THE BIGGEST BULL MARKET IN THE HISTORY OF CATTLE HE SAID THAT FROM THE BEGINNING OF 1978 TO THE FIRST QUARTER OF 1979 THE PRICE DOUBLED TO 80 CENTS A POUND IF SOMEONE CAUGHT THAT TREND AND TRADED IT WELL THEY COULD MAKE AN EXTRAORDINARY AMOUNT OF MONEY A LOT MORE THAN 100000 ON A SMALL INVESTMENT HE SAID BUT ONE EXPERT WAS SKEPTICAL OF MRS CLINTON'S SUCCESS THE IDEA THAT MRS CLINTON COULD TURN 1000 INTO 100000 TRADING A CROSSSECTION OF MARKETS SUCH AS CATTLE SOYBEANS SUGAR HOGS COPPER AND LUMBER JUST ISN'T BELIEVABLE SAID BRUCE BABCOCK EDITOR OF COMMODITY TRADERS CONSUMER REPORT A SACRAMENTO CALIF NEWSLETTER MR BABCOCK THE AUTHOR OF SEVERAL BOOKS INCLUDING THE DOW JONES IRWIN GUIDE ON TRADING SYSTEMS SAID TO MAKE 100 TIMES YOUR MONEY IS POSSIBLE BUT IT'S DIFFICULT TO UNDERSTAND HOW A NEWCOMER COULD DO IT I DON'T CARE WHO IS ADVISING HER IT JUST ISN'T VERY LIKELY WHITE HOUSE AIDES SAID THE MAJORITY OF MRS CLINTON'S TRADES WERE LONGTERM TRANSACTIONS RATHER THAN SOCALLED DAY TRADES WHICH TAKE PLACE IN A SINGLE DAY AND WHERE ABUSE IS MORE PREVALENT AIDES DID SAY THAT A FEW OF MRS CLINTON'S TRANSACTIONS WERE DAY TRADES IN ADDITION TO CATTLE MRS CLINTON ALSO TRADED IN SOYBEANS SUGAR HOGS COPPER AND LUMBER AIDES EMPHASIZED THAT THESE WERE MRS CLINTON'S TRANSACTIONS AND THAT HER HUSBAND WASN'T INVOLVED BUT THEY ACKNOWLEDGED THAT THEY HADN'T ASKED HER IF MR CLINTON WAS AWARE OF THE TRADING THE WHITE HOUSE DECISION TO RELEASE THE RECORDS COMES AS PART OF THEIR NEW STRATEGY TO BE MORE OPEN ABOUT THE QUESTIONS REGARDING THEIR PERSONAL FINANCES IT SEEMS TO BE WORKING MR CLINTON'S POPULARITY HAS RISEN IN PUBLIC OPINION POLLS AFTER HIS PRIME TIME NEWS CONFERENCE THURSDAY IN WHICH HE ANSWERED A SERIES OF QUESTIONS ABOUT THEIR INVESTMENT IN WHITEWATER DEVELOPMENT CO SOME COMMODITY TRADERS SEEMED TO BE PUZZLED BY THE CONDITION OF THE COMMODITY TRADING RECORDS RELEASED TO REPORTERS A NUMBER OF THE RECORDS INDICATE SPECIFIC NUMBERS OF CONTRACTS TRADED BUT SOME RECORDS MERELY LIST A CASH BALANCE WITHOUT BACKUP INFORMATION DESCRIBING THE COMMODITY AND THE NUMBER OF CONTRACTS THE POSSIBILITY OF MISSING MADISON GUARANTY RECORDS WAS RAISED BY A CHRONOLOGY OF A CRIMINAL INVESTIGATION BY THE RESOLUTION TRUST CORP AN RTC INVESTIGATOR DISCOVERED IN MAY 1993 THAT SEVERAL BOXES OF MADISON FILES WERE MISSING FROM A LITTLE ROCK WAREHOUSE USED BY THE SUCCESSOR INSTITUTION CENTRAL BANK & TRUST ACCORDING TO THE CHRONOLOGY WHICH WAS RELEASED LAST WEEK BY REP JAMES LEACH R IOWA THE RTC HAS BEEN LOOKING INTO THE FAILURE OF MADISON ONCE OWNED BY THE CLINTONS' WHITEWATER PARTNER JAMES MCDOUGAL IN LITTLE ROCK YESTERDAY MR MCDOUGAL FILED TO ENTER A THREEWAY DEMOCRATIC PRIMARY ELECTION FOR THE US HOUSE OF REPRESENTATIVES HE RAN FOR CONGRESS UNSUCCESSFULLY IN 1982 CENTRAL BANK WAS HEADED UNTIL APRIL 1993 BY LEONARD DUNN FINANCE CHAIRMAN FOR MR CLINTON'S 1990 GUBERNATORIAL CAMPAIGN AND A CLINTON APPOINTEE TO THE ARKANSAS INDUSTRIAL DEVELOPMENT COMMISSION IN AN INTERVIEW YESTERDAY MR DUNN SAID HE DOESN'T KNOW WHAT BECAME OF THE MADISON FILES I DIDN'T SHRED OR DUMP ANY RECORDS AND DIDN'T ORDER ANYBODY TO DO SO HE ASSERTED WHAT MOTIVE WOULD I HAVE TO DUMP RECORDS REP SPENCER BACHUS AN ALABAMA REPUBLICAN ASKED WHITEWATER SPECIAL COUNSEL ROBERT FISKE MONDAY TO INVESTIGATE THE MATTER IT ALREADY HAS BEEN WIDELY REPORTED THAT DOCUMENTS WERE SHREDDED AT THE ROSE LAW FIRM SAID MR BACHUS A MEMBER OF THE HOUSE BANKING COMMITTEE THE DESTRUCTION OF THE WAREHOUSED DOCUMENTS COULD BE PART OF A LARGER EFFORT TO PROTECT THE CLINTONS AND TO OBSTRUCT JUSTICE IN MARCH 1992 TWO INVESTIGATORS FOR THE RTC THE SAVINGSANDLOAN CLEANUP AGENCY VISITED THE WAREHOUSE AND REPORTED FINDING BOXES OF MADISON RECORDS IN SERIOUS DISARRAY ONE OF THE INVESTIGATORS JEAN LEWIS RETURNED 14 MONTHS LATER AND DISCOVERED THAT THE RECORDS HAD BEEN ORGANIZED AND A NUMBER OF BOXES HAD BEEN CLEARED OUT ACCORDING TO THE RTC CHRONOLOGY AFTERWARD MS LEWIS LEARNED THAT SOME RECORDS HAD BEEN MOVED TO A BACK ROOM AT THE BANK THE WAREHOUSE ALSO WAS USED BY THE LAW FIRM MITCHELL SELIG JACKSON TUCKER & WHITE WHICH HANDLED MUCH OF MADISON'S LEGAL WORK UNTIL GOVERNMENT REGULATORS TOOK OVER IN 1989 ACCORDING TO THE CHRONOLOGY EARL C GOTTSCHALK JR IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9403300027 940330 TECHNOLOGY BRIEF COMPAQ COMPUTER CORP PACT SET WITH WALMART TO SELL A COMPUTER MODEL COMPAQ COMPUTER CORP IN A MOVE TO BROADEN ITS BASE OF POTENTIAL CUSTOMERS REACHED AN AGREEMENT TO SELL ONE OF ITS PERSONALCOMPUTER MODELS IN WALMART STORES INC OUTLETS THE GIANT DISCOUNT RETAILER'S ROUGHLY 2000 STORES WILL OFFER COMPAQ'S HOTSELLING PRESARIO 425 WHICH RETAILS FOR ABOUT 1300 AND IS DESIGNED TO BE USED AT HOME BUT IN GETTING ONTO WALMART'S SHELVES COMPAQ IS ONLY PLAYING CATCHUP WITH SUCH RIVALS AS INTERNATIONAL BUSINESS MACHINES CORP APPLE COMPUTER INC DELL COMPUTER CORP AND PACKARD BELL ELECTRONICS INC SAID DAVID GOLDSTEIN A RETAILING CONSULTANT AT CHANNEL MARKETING CORP CARROLLTON TEXAS MR GOLDSTEIN WARNED THAT COMPAQ'S SALES THROUGH WALMART MAY NOT BE AS STRONG AS THE COMPUTER MAKER HOPES HE SAID SOME OF THE PC COMPANIES THAT SUPPLY WALMART HAVE BEEN FORCED TO TAKE BACK A SIGNIFICANT NUMBER OF MACHINES THAT THE RETAILER WASN'T ABLE TO SELL 9403300026 940330 WHO'S NEWS GENERAL MOTORS CORP GENERAL MOTORS CORP DETROIT NED S MCCLURG 48 YEARS OLD DIRECTOR OF ENGINEERING FOR THE AUTO MAKER'S AC ROCHESTER DIVISION WAS NAMED VICE PRESIDENT AND GENERAL MANAGER OF THE UNIT SUCCEEDING JAN E TANNEHILL WHO DIED MARCH 2 9403300024 940330 WHO'S NEWS STEWART ENTERPRISES INC STEWART ENTERPRISES INC METARIE LA WILLIAM E ROWE 47 YEARS OLD WAS NAMED SENIOR EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER NEW POSTS AT THIS OWNER AND OPERATOR OF FUNERAL HOMES AND CEMETERIES HE HAS BEEN PRESIDENT OF THE COMPANY'S MIDATLANTIC DIVISION 9403300023 940330 BUSINESS BRIEF REYNOLDS METALS CO BEVPAK PURCHASE TO BOOST CAPACITY TO PRODUCE CANS REYNOLDS METALS CO RICHMOND VA AGREED TO BUY BEVPAK INC A CLOSELY HELD ALUMINUM BEVERAGECAN MAKER IN MONTICELLO IND TERMS WEREN'T DISCLOSED WITH THE ADDITION OF BEVMARK REYNOLDS'S CAPACITY TO MAKE ALUMINUM CANS AND CAN ENDS WILL RISE TO MORE THAN 18 BILLION FROM 16 BILLION ANNUALLY BEVPAK IS A REGIONAL SUPPLIER TO THE SOFTDRINK INDUSTRY THE TRANSACTION EXPECTED TO CLOSE IN THE SECOND QUARTER WILL BE FINANCED WITH PROCEEDS FROM A RECENT PREFERREDSTOCK OFFERING OF 10 MILLION SHARES PRICED AT 4725 EACH REYNOLDS OPERATES 14 ALUMINUMCAN PLANTS AND TWO CANEND PLANTS IN THE US AND A CAN PLANT IN PUERTO RICO IT ALSO HAS JOINT VENTURES IN BRAZIL VENEZUELA AND TWO PLANTS UNDER CONSTRUCTION IN BRAZIL AND CHILE 9403300022 940330 WHO'S NEWS ROBERT HALF INTERNATIONAL INC ROBERT HALF INTERNATIONAL INC MENLO PARK CALIF FREDERICK A RICHMAN A SENIOR TAX PARTNER IN THE LOS ANGELES LAW FIRM OF O'MELVENY & MYERS WAS ELECTED TO THE BOARD OF THIS COMPANY WHICH PROVIDES TEMPORARY AND PERMANENT EMPLOYMENT PLACEMENT SERVICES THE ADDITION OF MR RICHMAN 48 YEARS OLD INCREASES THE BOARD TO EIGHT MEMBERS 9403300021 940330 BUSINESS BRIEF SVENSKA CELLULOSA AB SWEDISH CONCERN WILL BUY OTOR ONLY IN ITS ENTIRETY SWEDISH PULP AND PAPER GROUP SVENSKA CELLULOSA AB OR SCA SAID IT WON'T PROCEED WITH ITS EARLIERREPORTED AGREEMENT TO ACQUIRE AN 898 STAKE IN FRENCH PACKAGING COMPANY OTOR HOLDING SA UNLESS IT CAN ALSO ACQUIRE THE REMAINING 102 HELD BY STORA BILLERUD A SUBSIDIARY OF STORA AB EUROPE'S LARGEST FORESTPRODUCTS GROUP THE ANNOUNCEMENT REPRESENTS A CHANGE IN SCA'S POSITION ON THE MINORITY STAKE IN OTOR ON MARCH 18 SCA CHIEF EXECUTIVE SVERKER MARTINLOEF DENIED THE GROUP HAD ANY IMMEDIATE INTENTION TO TAKE OVER STORA BILLERUD'S HOLDINGS IN OTOR THE TOTAL PRICE FOR OTOR WOULD AMOUNT TO THE EQUIVALENT OF 239 BILLION KRONOR 3028 MILLION SCA SAID PREVIOUSLY THE SHARE ISSUE WILL BE CONSIDERED BY SCA SHAREHOLDERS AT AN EXTRAORDINARY GENERAL MEETING ON APRIL 11 SHOULD AN AGREEMENT BE REACHED WITH MAJORITY SHAREHOLDERS JEANYVES BACQUES AND STORA BILLERUD WITHIN THE NEAR FUTURE THE GROUP SAID 9403300020 940330 BUSINESS BRIEF RYMAC MORTGAGE INVESTMENT CORP REIT SUSPENDS A DIVIDEND LOSS FOR 4TH PERIOD IS POSTED RYMAC MORTGAGE INVESTMENT CORP SUSPENDED ITS FOURTHQUARTER DIVIDEND AND REPORTED A NET LOSS FOR THE PERIOD OF 77 MILLION OR 148 A SHARE CITING MORTGAGE PREPAYMENTS FOR THE YEAR THE STEUBENVILLE OHIO REAL ESTATE INVESTMENT TRUST REPORTED A LOSS OF 256 MILLION OR 492 A SHARE COMPARED WITH A YEAREARLIER LOSS OF 19 MILLION OR 36 CENTS A SHARE FOR THE YEAREARLIER FOURTH QUARTER THE REIT HAD A NET LOSS OF 35 MILLION OR 67 CENTS A SHARE RYMAC SAID ITS EARNINGS WERE SEVERELY IMPACTED BY THE UNPRECEDENTED HIGH LEVEL AND EXTENDED DURATION OF PREPAYMENTS ON RESIDENTIAL MORTGAGES THE PREPAYMENTS WERE DUE TO THE AVAILABILTY OF LOWER INTEREST RATES FOURTHQUARTER RESULTS ALSO REFLECT DOWNWARD ADJUSTMENTS ON THE CARRYING VALUE OF ASSETS TOTALING 76 MILLION OR 146 A SHARE FOR THE YEAR DOWNWARD ADJUSTMENTS IN CARRYING VALUE WERE 256 MILLION OR 491 A SHARE 9403300019 940330 INTERNATIONAL BRIEF FORD MOTOR CO EU PANEL CLEARS SUBSIDIES FOR JAGUAR'S NEW CAR LINE THE EUROPEAN UNION COMMISSION SAID IT HAS CLEARED INVESTMENT SUBSIDIES OF 112 MILLION 168 MILLION TO JAGUAR CARS A WHOLLY OWNED UNIT OF FORD MOTOR CO FOR ITS NEW LUXURY SPORTS CAR LINE THE NEW LINE OF LUXURY CARS KNOWN AS X100 WILL REPLACE THE XJS LINE WHICH WAS INTRODUCED IN 1975 IT WILL INCLUDE AN IMPROVED ENGINE WITH LOWER EMISSIONS THE COMMISSION SAID THE SUBSIDIES WILL BE PAID IN FOUR INSTALLMENTS BETWEEN 1994 AND 1997 AGAINST PROGRESS ON THE PROJECT THERE ARE PROVISIONS FOR WITHHOLDING OR CLAWING BACK THE GRANTS IF THERE IS UNDERACHIEVEMENT THE SUBSIDIES WILL SUPPORT INVESTMENT IN PLANTS AT BIRMINGHAM COVENTRY AND LIVERPOOL IN BRITAIN THE COMMISSION SAID THE PROJECT WILL INCREASE COMPETITION IN THE SECTOR BUT DOESN'T CAUSE COMPETITION CONCERNS BECAUSE THE INVESTMENT WON'T BE USED TO INCREASE CAPACITY 9403300018 940330 WHO'S NEWS A SCHULMAN INC A SCHULMAN INC AKRON OHIO PEGGY GORDON ELLIOTT 56 YEARS OLD PRESIDENT OF THE UNIVERSITY OF AKRON WAS NAMED A DIRECTOR OF THIS SUPPLIER OF HIGHPERFORMANCE PLASTIC COMPOUNDS AND RESINS THE MOVE INCREASES BOARD MEMBERSHIP TO 13 9403300017 940330 SOCIAL SECURITY FOREIGN LESSONS BY GARY S BECKER AND ISAAC EHRLICH SOCIAL SECURITY ONCE WIDELY REGARDED AS THE DIADEM OF THE MODERN WELFARE STATE HAS LOST MUCH OF ITS GLITTER IN RECENT YEARS THIS IS LARGELY BECAUSE THE SYSTEMS IN THE US AND MANY OTHER WESTERN COUNTRIES ARE FACING MAJOR FINANCIAL PROBLEMS NOT THIS YEAR OR IN THE NEXT FEW BUT SOMETIME EARLY IN THE NEXT CENTURY THE DIFFICULTIES ARE NOT AN INEVITABLE OUTCOME OF THE BASIC CONCEPT BUT RATHER OF THE WAY IT HAS BEEN IMPLEMENTED WESTERN COUNTRIES HAVE BY AND LARGE ADOPTED A DEFINEDBENEFITS PAYASYOUGO SYSTEM IN WHICH THE BENEFITS TO RETIREES ARE PAID FROM CONCURRENT CONTRIBUTIONS BY ACTIVE WORKERS ASIAN COUNTRIES BY CONTRAST HAVE RELIED MUCH LESS ON SUCH SYSTEMS HONG KONG AND TAIWAN SO FAR HAVE HAD NO MANDATORY PENSION SCHEMES SOUTH KOREA HAS ONLY RECENTLY INTRODUCED A MODEST ONE WHILE SINGAPORE MALAYSIA AND 20 OTHER ASIAN COUNTRIES HAVE RELIED MAINLY ON A CENTRAL PROVIDENT FUND THIS IS A FULLY FUNDED FORCEDSAVINGS PLAN THAT TIES RETIREES' BENEFITS TO THEIR OWN CONTRIBUTIONS THESE CONTRIBUTIONS ARE ACCUMULATED IN INDIVIDUALIZED ACCOUNTS MANAGED BY THE GOVERNMENT CHILE AND A FEW OTHER COUNTRIES HAVE ALSO ADOPTED SYSTEMS THAT MANDATE CONTRIBUTIONS TO INDIVIDUAL ACCOUNTS IN THESE RETIREMENT PROTECTION SYSTEMS PRIVATE FUNDS COMPETE FOR THE RIGHT TO MANAGE INDIVIDUAL ACCOUNTS SINCE THESE SYSTEMS HAVE THE ADVANTAGE OF COMPETITION AMONG PRIVATE COMPANIES THEY ARE SUPERIOR TO GOVERNMENTMANAGED CENTRAL PROVIDENT FUND SYSTEMS WHICH ARE IN TURN MUCH BETTER THAN PAYASYOUGO SYSTEMS IF WORKERS CONTRIBUTE 10 OF THEIR EARNINGS DURING THEIR WORKING LIVES THEY CAN BUILD UP A SUBSTANTIAL NEST EGG IN A RETIREMENT PROTECTION SYSTEM FOR EXAMPLE A 3 REAL RATE OF RETURN ON SAVINGS FOR A PERIOD OF 40 YEARS WILL ENSURE A PENSION AFTER RETIREMENT OF ALMOST TWOTHIRDS OF ANNUAL REAL EARNINGS FOR THE SUBSEQUENT 15 YEARS THIS 10 CONTRIBUTION IS ONLY TWOTHIRDS OF THE CURRENT COMBINED CONTRIBUTION BY EMPLOYERS AND EMPLOYEES TO SOCIAL SECURITY IN THE US THE GOVERNMENT SHOULD HAVE THE OBLIGATION TO ADD TO THE RETIREMENT INCOMES OF PEOPLE WHO HAVE NOT BUILT UP A SUFFICIENT FUND OVER THEIR WORKING LIVES TO STAY ABOVE THE POVERTY LEVEL IN RETIREMENT THIS OBLIGATION TO PROVIDE A SAFETY NET FOR OLDER PEOPLE EXPLAINS WHY IT MAY BE DESIRABLE TO MANDATE WORKER CONTRIBUTIONS A MANDATE PREVENTS YOUNG PEOPLE FROM NEGLECTING TO PROVIDE FOR THEIR OLD AGE WHEN THEY CAN COUNT ON THE GOVERNMENT TO HELP THEM OUT IF THEY LACK SUFFICIENT SAVINGS WHEN THEY ARE OLD PAYASYOUGO SYSTEMS UNLIKE FULLY FUNDED PLANS PROVIDE BENEFITS TO THE ELDERLY THAT ARE TIED NOT STRICTLY TO THEIR OWN LIFETIME CONTRIBUTIONS BUT MAINLY TO TAXES ON YOUNGER GENERATIONS OF ACTIVE WORKERS THESE SYSTEMS DEPEND CRITICALLY ON THE SUPPORT RATIO THE NUMBER OF PEOPLE IN THE PRIME LABORFORCEPARTICIPATION AGE GROUPS OF 20 TO 64 AVAILABLE TO SUPPORT THE PENSIONS OF THOSE AGE 65 AND OVER THESE SUPPORT RATIOS HAVE BEEN FALLING THROUGHOUT THE DEVELOPED WORLD IN THE US THE RATIO HAS DECLINED FROM 71 IN 1950 TO 47 IN 1990 AND IT IS EXPECTED TO DROP TO 33 IN THE YEAR 2020 IN WEST GERMANY THE RATE IS EXPECTED TO FALL TO UNDER 3 IN 2020 AND IN JAPAN IT MAY REACH AS LOW AS 2 THE SUPPORT RATIO HAS DECLINED PARTLY BECAUSE ADULT MORTALITY HAS FALLEN AND PARTLY BECAUSE BIRTH RATES ARE NOW VERY LOW THE AVERAGE COUPLE IN MOST RICH COUNTRIES PRODUCES FEWER THAN TWO CHILDREN IN GERMANY JAPAN AND SOME OTHERS IT PRODUCES ONLY ABOUT 15 CHILDREN THE AGING OF THE POPULATION IMPLIES THAT GROWING GOVERNMENT SPENDING WOULD BE REQUIRED TO FINANCE THE COST OF ANY GIVEN LEVEL OF PERCAPITA BENEFITS TO RETIRED PEOPLE AS A RESULT HIGHER TAXES WILL HAVE TO BE IMPOSED ON RELATIVELY FEWER WORKERS ALL THE PROJECTIONS SUGGEST THAT UNLESS BENEFIT LEVELS ARE REDUCED SIGNIFICANTLY BY THE YEAR 2025 GOVERNMENT SPENDING ON SOCIAL SECURITY WILL INCREASE GREATLY AS A FRACTION OF NATIONAL OUTPUT IN THE US AND OTHER RICH COUNTRIES IN THE EARLY 1970S IT WAS ESTIMATED THAT A TAX RATE OF 65 ON EARNINGS WOULD BE NEEDED IN CHILE TO PRODUCE THE FULL MENU OF MANDATED BENEFITS TO THE ELDERLY NO WONDER CHILE WENT ON TO PIONEER THE PRIVATIZATION OF A PAYASYOUGO SYSTEM INTO A RETIREMENT PROTECTION SYSTEM QUITE APART FROM THEIR FINANCIAL DIFFICULTIES PAYASYOUGO SYSTEMS ALSO HURT THE REAL ECONOMY THE UNDERLYING PHILOSOPHY OF THESE SYSTEMS IS THAT SOCIETY CAN BEHAVE LIKE AN EXTENDED FAMILY IN WHICH PARENTS CHILDREN AND GRANDCHILDREN ENGAGE IN MUTUALLY BENEFICIAL TRANSFERS BUT IN A FAMILY SETTING DIFFERENT GENERATIONS SHARE IN THE INDUSTRIOUSNESS AND PRODUCTIVITY OF ONE ANOTHER PARENTS' OLDAGE PLEASURE AND MATERIAL COMFORT ARE DIRECTLY LINKED TO THE PRODUCTIVITY AND SUCCESS OF THEMSELVES AND THEIR CHILDREN AND GRANDCHILDREN WHILE CHILDREN ARE ALSO HELPED BY THE PARENTS A PAYASYOUGO SYSTEM DOES NOT HAVE THIS LINKAGE PARENTS' SOCIAL SECURITY ENTITLEMENTS ARE LARGELY INDEPENDENT OF THEIR OWN CONTRIBUTIONS TO THE SOCIAL FUND AND THEY ARE ENTIRELY INDEPENDENT OF THEIR CHILDREN'S CONTRIBUTIONS THIS ENCOURAGES FAMILIES TO DECREASE THE SUPPORT THEY PROVIDE EACH OTHER AND RELY INSTEAD ON GOVERNMENT AID IT ALSO ENCOURAGES REDUCTIONS IN BIRTH RATES SINCE PARENTS BECOME LESS DEPENDENT ON THEIR OWN CHILDREN FOR OLDAGE SUPPORT BUT THIS DECLINE IN FAMILY SIZE PUTS FURTHER STRAINS ON THE FINANCIAL HEALTH OF A PAYASYOUGO SYSTEM NEITHER THE ADVERSE FINANCIAL CONSEQUENCES NOR THE HARMFUL REAL EFFECTS OF THE PAYASYOUGO SYSTEM NEED OCCUR UNDER FULLY FUNDED SCHEMES SINCE RETIREMENT PAYMENTS ARE PROPORTIONAL TO THE WORKER'S ACCUMULATED CONTRIBUTIONS AND THE ACCUMULATED RESERVES ARE INVESTED IN FINANCIAL INSTRUMENTS THAT TEND TO YIELD A COMPETITIVE RATE OF RETURN THESE SYSTEMS DO NOT HAVE THE SAME EFFECT ON BIRTH RATES AND AGGREGATE ECONOMIC PERFORMANCE TRENDS IN FERTILITY AND LONGEVITY MAY STILL AFFECT MARKET INTEREST RATES EARNED ON DEPOSITS BUT THEY DO NOT HAVE OTHER DIRECT EFFECTS ON FULLY FUNDED SCHEMES TO ENSURE THE SUCCESS OF A PRIVATE SYSTEM IT IS DESIRABLE TO LEAVE THE BUSINESS OF MANAGEMENT TO PRIVATE ANNUITY COMPANIES THAT COMPETE FOR CUSTOMERS WITH THEIR PENSION PRODUCTS GOVERNMENTS SHOULD MONITOR THE BEHAVIOR OF THESE FUNDS AND REQUIRE MINIMUM LEVELS OF CAPITAL THE MAIN DEFICIENCY OF A SINGAPORESTYLE CENTRAL PROVIDENT FUND IS THAT THE GOVERNMENT BECOMES A MAJOR INVESTOR AND OWNER OF PRIVATE EQUITY SINCE IT MANAGES HUGE ACCUMULATING BALANCES THE EVOLUTION OF THE SINGAPOREAN CENTRAL PROVIDENT FUND PROVIDES AN INSTRUCTIVE LESSON THE MANDATED COMBINED CONTRIBUTIONS OF EMPLOYEES AND EMPLOYERS ROSE TO A PEAK OF 50 OF EARNINGS IN 1984 AND ARE CURRENTLY SET AT THE STILL EXORBITANT LEVEL OF 40 THIS GOVERNMENTMONOPOLIZED SYSTEM HAS YIELDED A REAL RETURN TO WORKERS OF ONLY 2 A YEAR FROM 1961 TO 1992 MUCH LESS THAN WHAT PRIVATE EQUITY MARKETS YIELDED IN SINGAPORE OR ELSEWHERE IN ASIA WITH THE GOVERNMENT RUNNING OUT OF PROFITABLE INVESTMENT OPTIONS A PARTIAL PRIVATIZATION HAS ALREADY TAKEN PLACE IN SINGAPORE WORKERS ARE ALLOWED TO WITHDRAW INCREASING AMOUNTS OF THEIR ACCUMULATED BALANCES PRIOR TO RETIREMENT FOR HOUSING EDUCATION AND HEALTH OUTLAYS AND MORE RECENTLY ALSO FOR INVESTMENT IN STOCKS BONDS AND EVEN GOLD A PRIVATELY MANAGED RETIREMENT SYSTEM MAY SEEM WHOLLY IMPRACTICAL AND OUT OF TOUCH WITH POLITICAL REALITY BUT THIS IS PRECISELY WHAT CHILE HAS BEEN DOING FOR 13 YEARS SINCE PEOPLE THERE BECAME FED UP WITH THE PUBLIC SYSTEM SEVERAL PRIVATE FUNDS ACTIVELY COMPETE IN CHILE FOR THE RIGHT TO MANAGE THE SAVINGS THAT WORKERS ARE REQUIRED TO PUT ASIDE FOR THEIR OLD AGE GOVERNMENT REGULATIONS REQUIRE PRIVATE MANAGEMENT FUNDS TO HAVE MINIMUM CAPITALIZATION AND THEY LIMIT INVESTMENTS TO PARTICULAR CATEGORIES OF SECURITIES ALTHOUGH EXPENSES WERE HIGH DURING THE EARLY YEARS IN CHILE THEY HAVE FALLEN SHARPLY OVER TIME AS EXPERIENCE WITH THE SYSTEM HAS GROWN THE INFLATIONADJUSTED ANNUAL RATE OF RETURN ON INVESTMENTS FROM 1981 TO 1990 WAS MORE THAN 12 AND THE PENSIONS AWARDED SO FAR UNDER THIS SYSTEM HAVE BEEN GENEROUS COMPARED WITH THOSE OFFERED BY THE OLD SYSTEM HONG KONG'S 1992 DRAFT PROPOSAL TO ESTABLISH A COMMUNITYWIDE RETIREMENT PROTECTION SYSTEM IS SIMILAR IN SPIRIT TO THE CHILEAN SYSTEM BUT THE GOVERNMENT RECENTLY TURNED AWAY FROM THIS PROMISING IDEA BY PROPOSING INSTEAD A PAYASYOUGO SYSTEM FORTUNATELY MOUNTING PUBLIC CRITICISM MAY STILL REVIVE THE EARLIER PLAN A FEW OTHER COUNTRIES HAVE EITHER INTRODUCED A CHILEANSTYLE SYSTEM OR ARE CONSIDERING DOING SO OF COURSE OLDER WORKERS IN THE US WHO HAVE BEEN CONTRIBUTING TO THE TRADITIONAL SOCIAL SECURITY SYSTEM FOR MANY YEARS WILL HAVE TO BE GRADUALLY INTEGRATED INTO A PRIVATIZED SYSTEM CHILE OFFERED OLDER WORKERS THE OPTION OF EITHER REMAINING IN THE PAYASYOUGO SYSTEM OR TRANSFERRING INTO THE PRIVATIZED SYSTEM AND RECEIVING A BOND VALUED IN PROPORTION TO THEIR ACCUMULATED PAST CONTRIBUTIONS THE TRANSITION THERE WENT SMOOTHLY PERHAPS BECAUSE THE BOND VALUES WERE RATHER GENEROUS AND PRACTICALLY ALL OLDER WORKERS OPTED OUT OF THE TRADITIONAL SYSTEM THE US HAS DONE LITTLE TO PRIVATIZE ITS STATE ENTERPRISES ITS PRIVATIZATION MOVEMENT SHOULD BEGIN WITH ONE OF AMERICA'S MOST SIGNIFICANT INDUSTRIES PROVISION OF SECURITY FOR ELDERLY PEOPLE MR BECKER 1992 NOBEL PRIZE WINNER IN ECONOMICS IS A PROFESSOR AT THE UNIVERSITY OF CHICAGO AND A FELLOW AT THE HOOVER INSTITUTION MR EHRLICH IS A PROFESSOR AT THE UNIVERSITY OF BUFFALO AND VISITING PROFESSOR AT HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY 9403300016 940330 COSTLIER LABOR FEWER JOBS WHY AIRLINES CRASH BY FRANK J DOOLEY IN AN ATTEMPT TO SALVAGE THEIR COMPANY EMPLOYEES OF UAL CORP UNITED AIRLINES' PARENT ARE BUYING OUT THE CARRIER OTHER CARRIERS HAVE UNDERGONE SIMILAR CRISES IN RECENT YEARS WHAT ACCOUNTS FOR THE TROUBLES IT'S NOT THE FAULT OF DEREGULATION AS SOME CRITICS CLAIM THE BASIC PROBLEM IS THAT DESPITE A TUMULTUOUS 15 YEARS OF LABOR RELATIONS SINCE DEREGULATION VERY LITTLE HAS REALLY CHANGED UNIONS STILL HOLD THE UPPER HAND IN BARGAINING POWER AT MAJOR AIRLINES LEADING TO HIGH LABOR COSTS LOW PRODUCTIVITY AND LOTS OF RED INK IN THIS SENSE A UNION BUYOUT LIKE UNITED'S IS A MIXED BLESSING FOR UNIONS OF ALL GROUPS HAVE THE HARDEST TIME CUTTING LABOR COSTS UNLESS UNIONS BECOME WILLING TO WORK WITH MANAGEMENT TO CONTROL COSTS THE LARGEST CARRIERS AMERICAN DELTA UNITED AND USAIR MAY SUFFER THE FATE OF EASTERN AND PAN AM EXTINCTION PRIOR TO DEREGULATION IN 1978 AIRLINE LABOR COSTS WERE RARELY AN ISSUE SINCE WAGE INCREASES WERE SIMPLY PASSED ON TO THE CONSUMER THROUGH HIGHER FARES NEW AIRLINES WERE RESTRICTED FROM ENTERING THE MARKET AND LABOR COSTS VARIED LITTLE AMONG COMPETITORS THUS AIRLINE WORKERS GAINED WAGE PREMIUMS THAT TODAY ARE STILL 49 HIGHER THAN MANUFACTURING EMPLOYEES' UNION POWER SEEMED TO DIMINISH IN THE EARLY 1980S WITH THE DEVELOPMENT OF TWOTIERED WAGE SCALES FOR NEW EMPLOYEES BANKRUPTCIES TO AVOID UNION CONTRACTS AND A PROLIFERATION OF THREATS BY BIG CARRIERS TO SPIN OFF NONUNION LOWCOST SUBSIDIARIES BUT BY THE MIDDLE OF THE DECADE THE PENDULUM SWUNG BACK AS EVIDENCED BY TWO STRIKES THE PILOT WALKOUT AT UNITED IN 1985 AND THE WALKOUT BY MECHANICS PILOTS AND FLIGHT ATTENDANTS AT EASTERN IN 1989 MORE RECENTLY THE STRIKE BY FLIGHT ATTENDANTS AT AMERICAN MADE IT EVEN MORE CLEAR THAT IN TODAY'S COMPETITIVE MARKETPLACE LARGE CARRIERS CANNOT WITHSTAND THE SIGNIFICANT LOSS OF MARKET SHARE DURING EVEN A RELATIVELY BRIEF LABOR ACTION RECENTLY COMPETITION HAS BEEN DRIVEN BY TICKET PRICES THIS IS DUE FIRST TO THE SUCCESS AND GROWTH OF SUCH LOWCOST CARRIERS AS SOUTHWEST AND SECOND TO THE NEED FOR A QUICK CASH STIMULUS BY CARRIERS THAT HAVE GONE THROUGH BANKRUPTCY PROCEEDINGS SUCH AS CONTINENTAL AND TWA BY 1992 MORE THAN 90 OF ALL AIRLINE PASSENGERS WERE TRAVELING ON DISCOUNT FARES AS PRICE COMPETITION INCREASED THE PRESSURE ON LARGE CARRIERS TO REDUCE COSTS ALSO INCREASED AND THE SINGLELARGEST CONTROLLABLE COST IS LABOR THE GAP IN LABOR COSTS IS THE MOST SIGNIFICANT FACTOR IN KEEPING THE LARGE AIRLINES UNCOMPETITIVE ACCOUNTING FOR 60 OF THE TOTAL COST DIFFERENCE BETWEEN THE MAJOR CARRIERS AND THEIR LOWCOST COMPETITORS AND IT IS PRODUCTIVITY FEWER EMPLOYEES DOING MORE WORK MORE THAN WAGES THAT SEPARATES THE TWO THE 1992 AVERAGE SALARY OF 56874 FOR SOUTHWEST AIRLINES EMPLOYEES WAS ALMOST IDENTICAL TO THAT OF THE LARGEST CARRIERS HOWEVER SOUTHWEST EMPLOYEES HAD MUCH HIGHER PRODUCTIVITY AT THE LOWCOST CARRIERS INCLUDING SOUTHWEST PILOTS FLEW AN AVERAGE OF 637 HOURS PER MONTH VS 483 HOURS PER MONTH AT THE LARGEST CARRIERS HIGH PRODUCTIVITY PROVIDES SMALLER CARRIERS A 38 LABORCOST EDGE AND A WHOPPING PRICING ADVANTAGE TAKE FOR EXAMPLE A 620MILE FLIGHT BETWEEN BALTIMORE AND CHICAGO A MARKET RECENTLY ENTERED BY LOWCOST SOUTHWEST BASED ON 1992 DATA THE AVERAGE LARGE CARRIER WOULD PAY 1200 MORE IN TOTAL LABOR COSTS ALONE THAN A SMALLER CARRIER FOR THAT SINGLE ONEWAY FLIGHT WHEN YOU MULTIPLY THAT FIGURE BY THOUSANDS OF FLIGHTS EACH DAY THE DIFFERENCE IS ASTOUNDING AS CARRIERS LIKE SOUTHWEST ENTER THE LONGERHAUL MAJOR BUSINESS MARKETS SUCH AS THE BALTIMORECHICAGO ROUTE LONG DOMINATED BY AMERICAN UNITED AND USAIR PRICE COMPETITION MAKES IT EXTREMELY DIFFICULT FOR THE LARGE CARRIERS TO CHARGE HIGHER FARES TO MAKE UP FOR THE DIFFERENCE IN LABOR COSTS INSTEAD THEY ARE FORCED INTO SUCH STRATEGIES AS OFFERING THEIR OWN NOFRILLS SERVICE CLOSING SMALL HUBS DELAYING OR CANCELING DELIVERIES OF NEW PLANES RETIRING OLD PLANES AND ELIMINATING MANAGEMENT AND LABOR POSITIONS ANOTHER POPULAR STRATEGY ALREADY EMPLOYED BY NORTHWEST AND OTHERS IS TO OFFER EQUITY OWNERSHIP TO UNIONS IN RETURN FOR CONCESSIONS AT UNITED EMPLOYEES WILL ACQUIRE 53 TO 63 OF EQUITY AND THREE BOARD SEATS IN EXCHANGE FOR 5 BILLION IN PAY BENEFIT AND WORKRULE CONCESSIONS PILOT WAGES WILL FALL ABOUT 16 WHILE GROUND CREWS' WAGES WILL DROP ABOUT 10 A NOFRILLS SERVICE CALLED U2 WILL ALSO BE LAUNCHED DESPITE SIMILAR EFFORTS THE LARGE CARRIERS SO FAR HAVE MADE LITTLE HEADWAY IN LOWERING COSTS LABOR REMAINS 36 OF TOTAL COSTS AT THE LARGER CARRIERS VS 31 AT FORMERLY BANKRUPT AND LOWCOST CARRIERS AND THE GAP IS WIDENING THE BENEFITS OF TWOTIER WAGE PLANS ARE LOST BECAUSE THE LOWESTPAID EMPLOYEES ARE THE FIRST TO BE LAID OFF WHEN THE AIRLINES CUT CAPACITY TO REMAIN COMPETITIVE LARGER CARRIERS AND UNIONS MUST DEVELOP STRATEGIES TO CHANGE ANACHRONISTIC WORK RULES CONTRACT OUT WORK AND ALLOW PREMIUM PAY FOR OUTSTANDING EMPLOYEES WITHOUT THESE KINDS OF CHANGES THE FUTURE OF AIRLINES LIKE AMERICAN DELTA UNITED AND USAIR REMAINS UP IN THE AIR MR DOOLEY IS AN ECONOMIST AT NORTH DAKOTA STATE UNIVERSITY THIS ARTICLE IS BASED ON A STUDY PUBLISHED IN THE SPRING ISSUE OF THE JOURNAL OF LABOR RESEARCH 9403300015 940330 J I CASE TO EXTEND ITS RESTRUCTURING PLAN TO EUROPE OPERATIONS RACINE WIS J I CASE THE FARM AND CONSTRUCTION EQUIPMENT MAKING UNIT OF TENNECO INC ANNOUNCED PLANS TO BRING ITS RESTRUCTURING PROGRAM TO ITS EUROPEAN OPERATIONS UNDER THE PROPOSAL WHICH IS SUBJECT TO CONSULTATION WITH CASE'S EUROPEAN UNIONS CASE PLANS TO CUT ITS AGRICULTURAL TRACTOR AND TRANSMISSION PRODUCTION AND CONSOLIDATE ENGINEERING MANUFACTURING AND PRODUCT SUPPORT FOR CONSTRUCTION EQUIPMENT THE STEPS DESIGNED TO CUT EXCESS CAPACITY INEFFICIENT DISTRIBUTION AND TOO MANY PRODUCT LINES ARE A CONTINUATION OF CASE'S 920 MILLION THREEYEAR RESTRUCTURING PROGRAM WHICH BEGAN IN MARCH 1993 CASE HAS 7500 EUROPEAN EMPLOYEES SPECIFICALLY CASE PLANS TO CLOSE ITS VIERZON FRANCE FACILITY WHICH MAKES HYDRAULIC EXCAVATORS AND TRANSFER LOADER BACKHOE ASSEMBLY TO ITS SITE IN CREPY EN VALOIS FRANCE CREATE AN AGRICULTURAL TRANSMISSION PRODUCTION CENTER AT ITS ST DIZIER FRANCE PLANT CREATE A SINGLE PARTS DEPOT IN FRANCE BY TRANSFERRING PARTS DISTRIBUTION FROM THE RIS ORANGIS FRANCE DEPOT TO LEPLESSIS L'OISE FRANCE PHASE OUT COMPONENT MANUFACTURING ACTIVITIES AT ITS TRACTOR ASSEMBLY IN DONCASTER BRITAIN DONCASTER WILL BE CASE'S ONLY SUCH PLANT FOLLOWING THE CLOSING OF THE NEUSS GERMANY PLANT IN 1996 SELL OR SPIN OFF ITS ST DIZIER AND DONCASTER FOUNDRIES IF CASE IS UNABLE TO DO SO IT WILL CLOSE THE FOUNDRIES CASE TOOK SEVERAL MAJOR RESTRUCTURING STEPS LAST YEAR MOST OF THEM IN THE US INCLUDING CLOSING ITS WAUSAU WIS PLANT AND ITS MEMPHIS TENN PARTS DEPOT LAST YEAR IT REPORTED OPERATING INCOME OF 83 MILLION ON SALES OF 37 BILLION 9403300014 940330 UNION CAMP CONSIDERS PACT WAYNE NJ UNION CAMP CORP SAID IT SIGNED A LETTER OF INTENT TO EXPLORE AN ASSOCIATION WITH ZUCAMOR SA A BUENOS AIRES CORRUGATED CONTAINER COMPANY THE ARGENTINE COMPANY WITH ANNUAL SALES OF 49 MILLION OPERATES A RECYCLED LINERBOARD MILL AND CORRUGATED CONTAINER PLANT NEAR BUENOS AIRES AND A CORRUGATED CONTAINER PLANT IN SAN JUAN PROVINCE UNION CAMP SAID AN INVESTMENT IN ZUCAMOR WOULD COMPLEMENT ITS CORRUGATED CONTAINER PLANT IN CHILE AND FIT ITS INTERNATIONAL EXPANSION STRATEGY UNION CAMP IS A PAPER PACKAGING AND CHEMICALS COMPANY WITH 3 BILLION IN ANNUAL SALES 9403300013 940330 TECHNOLOGY AL LABS GETS APPROVAL FORT LEE NJ AL LABORATORIES INC SAID IT RECEIVED REGULATORY APPROVAL IN DENMARK FINLAND AND THE UNITED KINGDOM TO MAKE AND MARKET DUMICOAT A TREATMENT FOR A FUNGAL DISEASE AFFLICTING DENTURE WEARERS 9403300012 940330 WHO'S NEWS WESTERN MICRO TECHNOLOGY INC WESTERN MICRO TECHNOLOGY INC SARATOGA CALIF RONALD H MABRY 46 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS ELECTRONICS DISTRIBUTION FIRM MR MABRY PREVIOUSLY A SENIOR VICE PRESIDENT AT AVNET INC IN CULVER CITY CALIF SUCCEEDS MARSHALL G GOX 58 WHO RETIRED FROM THOSE POSTS BUT REMAINS CHAIRMAN 9403300011 940330 INTERNATIONAL RECORDING INDUSTRY URGES EUROPEAN UNION TO FIGHT MUSIC PIRACY BRUSSELS THE EUROPEAN UNION SHOULD MOVE FAST TO CURB MUSIC PIRATES UNLESS IT WANTS ITS MULTIBILLIONDOLLAR RECORDING BUSINESS TO WALK THE PLANK INDUSTRY OFFICIALS WARNED SIR COLIN SOUTHGATE CHAIRMAN OF THORN EMI PLC AND OTHER INDUSTRY OFFICIALS SAID RAMPANT PIRATING OF MUSIC AND PLANS FOR INFORMATION SUPERHIGHWAYS THREATEN THE SURVIVAL OF THEIR BUSINESS THE INDUSTRY HAS BEEN A GREAT SUCCESS SIR COLIN SAID AT A NEWS CONFERENCE HERE BUT THAT ALONE WILL NOT GUARANTEE ITS SURVIVAL AGAINST THE CHALLENGES OF DIGITAL CONVERGENCES TRADE BARRIERS OBSOLETE INTELLECTUAL PROPERTY LAWS AND THE HUGE ILLEGAL ECONOMY OF RECORD PIRACY A REPORT BY THE INTERNATIONAL FEDERATION OF THE PHONOGRAPHIC INDUSTRY RELEASED AT THE CONFERENCE WARNED THAT THE HEALTHY GROWTH OF THE WORLD'S MAJOR RECORDING COMPANIES IS LIKELY TO SUFFER UNLESS THE FIGHT AGAINST PIRACY INTENSIFIES AND NEW COPYRIGHT LEGISLATION IS HAMMERED OUT ACCORDING TO IFPI FIGURES REVENUES FROM SALES OF RECORDS COMPACT DISKS AND CASSETTE TAPES MORE THAN TRIPLED TO 1053 BILLION IN THE 18NATION EUROPEAN ECONOMIC AREA IN THE DECADE TO 1992 THAT REPRESENTS MORE THAN A THIRD OF THE INDUSTRY'S WORLDWIDE REVENUES OF 288 BILLION BUT THE IFPI WARNS THAT THE GLOBAL INDUSTRY LOSES SOME 2 BILLION A YEAR TO PIRACY 427 MILLION OF IT IN THE EEA MANY OF THE BOOTLEG COMPACT DISKS AND TAPES ARE CHURNED OUT IN FACTORIES IN EASTERN EUROPE AND ASIA CHINA ALONE CAN PRODUCE UP TO 75 MILLION DISKS A YEAR IN 25 SUCH PLANTS THE IFPI SAID CHINA IS DEVELOPING THE CAPACITY TO DESTROY LEGITIMATE RECORDING COMPANIES WARNED IFPI'S DIRECTOR GENERAL NICHOLAS GARNETT 9403300010 940330 NORTHWEST POSTPONES DEBT OFFERING CITING WEAKNESS OF MARKET ST PAUL MINN NORTHWEST AIRLINES SAID IT POSTPONED A 350 MILLION DEBT OFFERING CITING WEAKENING CONDITIONS IN THE BOND MARKET RECENT CONCERNS ABOUT THE ECONOMY HAVE FORCED UP INTEREST RATES SAID MICKEY FORET THE AIRLINE'S CHIEF FINANCIAL OFFICER WITH SOME 25 BILLION IN HIGHYIELD ISSUES COMING TO MARKET IN THE NEAR FUTURE WE HAVE DECIDED THAT THIS IS NOT THE BEST TIME TO SELL BONDS HE ADDED THE AIRLINE WOULD CONTINUE TO MONITOR THE MARKET AND PROCEED WHEN CONDITIONS ARE APPROPRIATE MONDAY THE CARRIER SAID IT HAD NO PLANS TO POSTPONE THE OFFERING WHICH WAS SHAPING UP AS ONE OF THE WEEK'S MOST CLOSELY WATCHED DEALS ACCORDING TO ANALYSTS THE COMPANY HOPED TO OFFER AN 11 INTEREST RATE ON THE 10YEAR BONDS BUT WALL STREET OBSERVERS BEGAN TO DOUBT THE AIRLINE COULD SELL THE DEBT BECAUSE POTENTIAL INVESTORS DEMANDED A COUPON OF 12 OR HIGHER NORTHWEST OFFICIALS THOUGHT THEY HAD A WINDOW AND IT CLOSED SAID GLENN D ENGEL AN AIRLINE ANALYST FOR GOLDMAN SACHS & CO THEY WERE OVERLY AGGRESSIVE IN PRICING AND THE BOND MARKET WAS OUT OF THEIR CONTROL NORTHWEST PLANNED TO USE PROCEEDS TO PAY DOWN BANK DEBT AND UPGRADE ITS FLEET THE AIRLINE MUST RAISE 500 MILLION BY 1996 AS PART OF A RESTRUCTURING AGREEMENT THIS MONTH IT RAISED ABOUT 250 MILLION IN AN INITIAL PUBLIC OFFERING MR FORET SAID THE COMPANY HAS ABOUT A 1 BILLION IN CASH AND ADDED THERE IS NO NEED FOR THE COMPANY TO UNDERTAKE THIS TRANSACTION NOW THE CARRIER ANNOUNCED THE DECISION AFTER MARKETS CLOSED IN NASDAQ STOCK MARKET TRADING ITS SHARES ENDED AT 12375 DOWN 25 CENTS 9403300009 940330 GENERAL MAGIC SAID TO HIRE UNDERWRITERS FOR INITIAL OFFERING A WALL STREET JOURNAL NEWS ROUNDUP GENERAL MAGIC INC A SOFTWARE CONSORTIUM THAT INCLUDES THE WORLD'S BIGGEST TELECOMMUNICATIONS AND CONSUMERELECTRONICS CONCERNS HAS HIRED INVESTMENT BANKERS TO BEGIN PLANNING FOR AN INITIAL PUBLIC OFFERING INDUSTRY SOURCES CONFIRMED THE COMPANY DECLINED COMMENT ON ITS PLANS FOR AN IPO REPORTED YESTERDAY IN THE SAN FRANCISCO CHRONICLE BUT SOFTWARE EXECUTIVES SAID THE CONSORTIUM HAS HIRED GOLDMAN SACHS & CO SMITH BARNEY SHEARSON AND ALEX BROWN & SONS INC TO UNDERWRITE THE OFFERING THE TIMING OF WHICH HASN'T YET BEEN DETERMINED THE COMPANY IS DEVELOPING COMMUNICATIONS SOFTWARE CALLED TELESCRIPT THAT LINKS TOGETHER DISPARATE COMPUTERS AND OTHER DEVICES AND ALLOWS THE USE OF PROGRAMMABLE AGENTS THAT WILL AUTOMATICALLY PERFORM TASKS FOR USERS OF AN ELECTRONIC NETWORK SUCH AS FINDING AND FILTERING INFORMATION GENERAL MAGIC BASED IN MOUNTAIN VIEW CALIF IS ALSO DEVELOPING AN OPERATING SYSTEM CALLED MAGIC CAP THAT FACILITATES THE USE OF TELESCRIPT DEVICES USING THESE TECHNOLOGIES ARE EXPECTED ON THE MARKET IN LATE SUMMER OR EARLY FALL AS IS A NATIONAL NETWORK OPERATED BY AMERICAN TELEPHONE & TELEGRAPH CO NINE COMPANIES OWN SLIGHTLY MORE THAN HALF OF GENERAL MAGIC AT&T NIPPON TELEGRAPH & TELEPHONE FUJITSU LTD TOSHIBA CORP SONY CORP MATSUSHITA ELECTRIC INDUSTRIAL CO PHILIPS ELECTRONICS NV MOTOROLA INC AND APPLE COMPUTER INC THE REST OF THE SHARES ARE OWNED BY MANAGERS NONE OF THE PARTNERS OR MANAGERS PLAN TO SELL THEIR SHARES IN THE OFFERING INDUSTRY EXECUTIVES SAID 9403300007 940330 SOUTH KOREAN CONSUMER PRICES SEOUL SOUTH KOREA SOUTH KOREA'S CONSUMER PRICES ROSE 09 IN MARCH FROM FEBRUARY A SLOWDOWN FROM THE PREVIOUS YEAR'S 13 INCREASE THE ECONOMIC PLANNING BOARD SAID THE MARCH FIGURE ALSO REPRESENTS A SLOWED PACE FROM INCREASES OF 13 AND 11 RESPECTIVELY IN JANUARY AND FEBRUARY 9403300006 940330 WHO'S NEWS MTC ELECTRONIC SAYS CHAIRMAN WAS OUSTED AND FIRED AS CEO VANCOUVER BRITISH COLUMBIA MTC ELECTRONIC TECHNOLOGIES CO SAID ITS BOARD OUSTED ITS CHAIRMAN AND FIRED HIM AS THE COMPANY'S CHIEF EXECUTIVE OFFICER FOLLOWING ALLEGATIONS OF FINANCIAL IMPROPRIETIES IN A NEWS RELEASE ISSUED FROM HONG KONG THE VANCOUVER CONSUMERELECTRONICS COMPANY SAID ITS BOARD VOTED TO REMOVE MIKO LEUNG AND HIS BROTHER SIT WA LEUNG FROM ALL OFFICES THEY CURRENTLY OCCUPY IN THE COMPANY ITS SUBSIDIARIES AND AFFILIATES IT SAID THE LEUNGS WERE ALSO ASKED TO RESIGN AS DIRECTORS BUT REFUSED THE COMPANY SAID THAT ITS BOARD WILL IMMEDIATELY LAUNCH A SEARCH FOR QUALIFIED SUCCESSORS TO THE LEUNGS THAT ITS VICE CHAIRMAN EDILBERTO POZON AGREED TO SERVE AS INTERIM CHIEF EXECUTIVE AND THAT IT DESIGNATED MR POZON AND THE COMPANY'S TWO REMAINING DIRECTORS AS AN EXECUTIVE COMMITTEE WITH BROAD POWERS TO SUPERVISE ITS MANAGEMENT BEFORE YESTERDAY'S HONG KONG BOARD MEETING MIKO LEUNG WHO FOUNDED MTC WAS THE COMPANY'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SIT WA LEUNG WAS ITS VICE PRESIDENT OF OPERATIONS AND CORPORATE SECRETARY MTC SAID THAT ITS AUDITORS DISCOVERED THAT MTC EMPLOYEES WHO WERE PURPORTEDLY GRANTED OPTIONS ON 800000 OF THE COMPANY'S SHARES HADN'T RECEIVED THE OPTIONS INSTEAD THE OPTIONS WERE EXERCISED THE STOCK SOLD AND THE PROCEEDS EITHER RECEIVED BY MIKO LEUNG OR PAID FOR HIS BENEFIT THE COMPANY SAID IT DIDN'T DISCLOSE THE AMOUNT OF PROCEEDS THE LEUNGS WHOM MTC SAYS ARE IN HONG KONG COULDN'T BE REACHED FOR COMMENT IN ITS NEWS RELEASE MTC SAID THAT MIKO LEUNG STATED TO THE COMPANY'S BOARD THAT HE RECEIVED NO PERSONAL BENEFITS FROM THE STOCKOPTION TRANSACTIONS 9403300005 940330 INTERNATIONAL MEXICO RULING PARTY PICKS ZEDILLO TO RUN FOR PRESIDENT BY PAUL B CARROLL AND DIANNE SOLIS STAFF REPORTERS OF THE WALL STREET JOURNAL MEXICO CITY THE MEXICAN RULING PARTY NAMED AS ITS NEW PRESIDENTIAL CANDIDATE ERNESTO ZEDILLO WHOSE LACK OF NAME RECOGNITION AND POLITICAL INEXPERIENCE MAY MEAN THIS AUGUST'S ELECTIONS AREN'T A SURE THING FOR THE PARTY MR ZEDILLO 42 YEARS OLD IS STILL THE FAVORITE TO WIN THE RULING PARTY THE PRI HAS NEVER LOST A PRESIDENTIAL ELECTION IN ITS NEARLY SEVEN DECADES OF EXISTENCE BESIDES MR ZEDILLO WILL BENEFIT FROM SYMPATHY VOTES STEMMING FROM LAST WEEK'S ASSASSINATION OF THE PARTY'S ORIGINAL CANDIDATE LUIS DONALDO COLOSIO BUT MEMBERS OF THE OPPOSITION SAID THEY WELCOMED THE CHANCE TO RUN AGAINST MR ZEDILLO WHOM THEY THINK THEY CAN PAINT AS A TECHNOCRAT TOO GREEN TO HANDLE MEXICO'S COMPLEX POLITICAL SITUATION HE'S VERY BEATABLE SAID ONE ADVISER TO THE PRD THE MAIN OPPOSITION PARTY OF THE LEFT HE SAID MR ZEDILLO LACKS SIZZLE IN RECENT DAYS POLITICAL ANALYSTS AND MEMBERS OF THE OPPOSITION SAY THE PRI HAD BEEN SOUNDING OUT THE OPPOSITION PARTIES ABOUT THE POSSIBILITY OF DELAYING THE ELECTIONS OR AMENDING THE CONSTITUTION SO THAT SITTING MEMBERS OF THE CABINET COULD RUN BUT THE ANALYSTS AND THE OPPOSITION SAY THE OVERTURES WERE REBUFFED BOTH BECAUSE THIS WAS A MATTER OF PRINCIPLE AND BECAUSE THE OPPOSITION WANTED TO RUN AGAINST MR ZEDILLO MR ZEDILLO WHO HAS NEVER HELD ELECTED OFFICE DOESN'T EVEN HAVE THE WHOLEHEARTED SUPPORT OF HIS OWN PARTY IN THE DAYS SINCE MR COLOSIO'S ASSASSINATION VARIOUS HARDLINE FACTIONS WITHIN THE PARTY UPSET OVER PRESIDENT SALINAS'S RECENT POLITICAL REFORMS HAD FLOATED OTHER NAMES THEY WOULD HAVE PREFERRED TO MR ZEDILLO WHO IS EXPECTED TO BE EVEN MORE OF A SALINAS CLONE THAN MR COLOSIO WOULD HAVE BEEN AND IN AN ASTONISHING SHOW OF DISSENT IN A COUNTRY WHERE PARTY DISCIPLINE IS PARAMOUNT 78 OUT OF 201 OFFICIAL ADVISERS TO THE PRI ANNOUNCED THAT THEY HAD SIGNED A STATEMENT YESTERDAY MORNING OPPOSING ANY ATTEMPT BY THE PARTY TO CHANGE THE CONSTITUTION OR DELAY THE ELECTIONS THE ONLY SENIOR OFFICIAL WHO SPOKE UP ON BEHALF OF MR ZEDILLO WAS PEDRO ASPE THE FINANCE MINISTER WHO PRAISED HIS ECONOMIC WORK MR ZEDILLO DID PICK UP AN IMPORTANT ENDORSEMENT WHEN MANUEL CAMACHO SOLIS THE GOVERNMENT'S MEDIATOR WITH THE REBELS IN CHIAPAS RELEASED A STATEMENT SAYING THAT HE SUPPORTED MR ZEDILLO WHILE ALSO CALLING ON HIM TO CONTINUE A WIDEOPEN NATIONAL DIALOGUE TO INCREASE DEMOCRACY IN MEXICO IT WAS MR CAMACHO'S FLIRTATION WITH A MAVERICK RUN FOR THE PRESIDENCY THAT HAD COMPLICATED THE EARLY MONTHS OF MR COLOSIO'S CAMPAIGN MR ZEDILLO HIMSELF DIDN'T DO MUCH TO CREATE ANY EXCITEMENT HIS ACCEPTANCE SPEECH MAINLY TRIED TO WRAP HIM IN THE MANTLE OF MR COLOSIO AFTERWARD AS HE TRIED TO WALK DOWN THE STEPS OF PRI HEADQUARTERS TO GREET SOME OF THE CROWD OF 4000 THE STEPPEDUP SECURITY FORCES QUICKLY PULLED HIM BACK MR ZEDILLO IS KNOWN AS AN EXCEPTIONALLY BRIGHT ECONOMIST WHO MADE HIS NAME IN THE EARLY 1980S WITH A SCHEME CALLED FICORCA THAT EFFECTIVELY MANAGED THE FOREIGN DEBT OF MEXICAN COMPANIES DURING THE ECONOMIC CRISIS HERE IT WAS REALLY INGENIOUS SAID DEBORAH RINER THE CHIEF ECONOMIST AT THE AMERICAN CHAMBER OF COMMERCE THE PRIVATE SECTOR WOULD HAVE GONE UNDER WITHOUT IT MR ZEDILLO HASN'T ALWAYS BEEN RIGHT HIS 1978 DOCTORAL THESIS IN ECONOMICS AT YALE UNIVERSITY FOR INSTANCE SUGGESTED THAT MEXICO SHOULD AMASS MORE FOREIGN DEBT ON THE ASSUMPTION THAT OIL PRICES WOULD CONTINUE RISING INSTEAD THEY COLLAPSED PLUNGING MEXICO INTO ITS ECONOMIC CRISIS IN THE EARLY 1980S MR ZEDILLO DID HOWEVER CATCH THE EYE OF MR SALINAS AND SUCCEEDED HIM IN THE CABINET OF PRESIDENT MIGUEL DE LA MADRID WHEN MR SALINAS RESIGNED TO RUN FOR PRESIDENT IN 1988 MR ZEDILLO RETAINED THE POSITION OF BUDGET MINISTER UNDER PRESIDENT SALINAS THEN BECAME EDUCATION MINISTER TWO YEARS AGO WHILE THERE MR ZEDILLO REMOVED ONE OF THE IMPEDIMENTS TO EDUCATIONAL REFORM BY DECENTRALIZING MUCH OF HIS CONTROL THAT WAY THE PREVIOUSLY POWERFUL TEACHERS UNION HAD TO DEAL INDIVIDUALLY WITH AUTHORITIES IN MEXICO'S 31 STATES AND IN MEXICO CITY AND COULDN'T SHUT DOWN THE COUNTRY'S EDUCATION SYSTEM AS IT HAD IN THE PAST MR ZEDILLO HOWEVER RAN INTO TROUBLE WHEN HIS MINISTRY SELECTED SOME EXPENSIVE NEW HISTORY TEXTBOOKS THAT WERE FULL OF ERRORS AND THAT CUT OFF MEXICAN HISTORY AT 1964 THE PLOY SEEMED DESIGNED TO PREVENT STUDENTS FROM READING ABOUT THE GOVERNMENT'S MASSACRE OF STUDENTS IN 1968 MR ZEDILLO LEFT THE EDUCATION MINISTRY TO BECOME MR COLOSIO'S CAMPAIGN MANAGER BUT THE LACKLUSTER START TO THE CAMPAIGN DID LITTLE TO IMPROVE HIS CREDENTIALS AS A POLITICIAN UNLIKE MOST PRI PRESIDENTIAL CANDIDATES OF THE PAST MR ZEDILLO COMES FROM MODEST BEGINNINGSHIS FATHER WAS AN ELECTRICIAN HIS MOTHER A SCHOOLTEACHER HE ATTENDED A MIDDLING MEXICAN UNIVERSITY BEFORE GOING TO YALE IF MR ZEDILLO WINS HE WILL BECOME THE THIRD CONSECUTIVE PRESIDENT OF MEXICO TO BE AN IVY LEAGUETRAINED ECONOMIST AN AVID CYCLIST WHO HAS BEEN SEEN AT CYCLING EVENTS AROUND MEXICO CITY HE IS MARRIED WITH FIVE CHILDREN SEPARATELY A SPOKESMAN FOR THE FEDERAL ATTORNEY GENERAL SAID THE OFFICE WILL CHARGE A SECOND MAN IN THE ASSASSINATION OF MR COLOSIO AS PREVIOUSLY REPORTED AUTHORITIES HAD DETAINED THE MAN TRANQUILINO SANCHEZ BECAUSE A VIDEOTAPE HAD APPEARED TO SHOW HIM CLEARING THE WAY FOR MARIO ABURTO MARTINEZ TO SHOOT MR COLOSIO IN THE HEAD THE GOVERNMENT HAD PREVIOUSLY SAID MR ABURTO WAS ACTING ALONE THE NEWSPAPER REFORMA ALSO REPORTED YESTERDAY THAT A 16YEAROLD GIRL WHOM MR ABURTO WAS WOOING SAID SHE SAW MESSRS SANCHEZ AND ABURTO TALKING A FEW DAYS BEFORE THE ASSASSINATION 9403300004 940330 WHAT'S NEWS BUSINESS AND FINANCE STOCKS PLUNGED SPARKED BY TUMBLING BOND PRICES THE DOW JONES INDUSTRIALS LOST 6333 POINTS OR 17 TO 369902 THE DROP IN BOND PRICES WAS SPURRED BY A REPORT THAT CONSUMER CONFIDENCE IN THE ECONOMY SURGED IN MARCH TO THE HIGHEST LEVEL IN NEARLY FOUR YEARS THE BENCHMARK 30YEAR TREASURY BOND TUMBLED MORE THAN A POINT ITS YIELD ROSE TO 706 ITS HIGHEST LEVEL SINCE FEBRUARY 1993 CONSUMERS ARE BORROWING HEAVILY AGAIN AND ECONOMISTS SAID THAT SIGNALS OPTIMISM ABOUT THE FUTURE AND A WILLINGNESS TO TAKE ON DEBT ALTHOUGH TOTAL CONSUMER DEBT AS A PERCENTAGE OF DISPOSABLE INCOME IS BACK TO LATE1980S LEVELS LOW INTEREST RATES HAVE MADE THAT DEBT MUCH MORE AFFORDABLE VIACOM AGREED TO SELL ITS ONETHIRD STAKE IN LIFETIME CABLE NETWORK FOR 3176 MILLION TO PARTNERS HEARST AND CAPITAL CITIES/ABC SEPARATELY THE COMPANY IS DISCUSSING A POSSIBLE BUSINESS COMBINATION INVOLVING ITS CABLE SYSTEMS AND TELECOMMUNICATIONS THE WHITE HOUSE IS MULLING A SELECTIVE RATHER THAN TOTAL REVOCATION OF CHINA'S TRADE BENEFITS IF SUFFICIENT HUMANRIGHTS PROGRESS ISN'T SHOWN OFFICIALS ARE CONSIDERING REVOKING FAVORABLE RULES FOR GOODS MADE BY CHINESE STATEOWNED ENTERPRISES BUT NOT FOR THOSE MADE BY PRIVATE VENTURES THE US COMMERCE DEPARTMENT IS EXPECTED TO ISSUE A PRELIMINARY RULING TODAY THAT WILL PROPOSE TARIFFS THAT COULD BE SIGNIFICANT AGAINST FUJI PHOTO FILM FOR ILLEGALLY DUMPING COLOR PHOTOGRAPHIC PAPER IN THE US THE RULING WOULD BE A VICTORY FOR KODAK THOUGH MAYBE A SHORTLIVED ONE AS FUJI SAID IT WOULD TRY TO SPEED UP PLANS TO BUILD A US PLANT IF SUCH A RULING IS ISSUED THE US REJECTED JAPAN'S LATEST PACKAGE OF MARKETOPENING MEASURES AS LACKING IN SUBSTANCE AND PREPARED TO INTENSIFY ITS TRADE BATTLE WITH TOKYO ANTICIPATING THAT REACTION TOKYO'S NIKKEI 225STOCK INDEX SANK 12 GM WILL TAKE A 758 MILLION CHARGE FOR THE FIRST QUARTER TO REFLECT THE COST OF DISABILITY AND CERTAIN OTHER EMPLOYEE BENEFITS BUT THE AUTO MAKER REPEATED ITS PLEDGE TO SHOW A PROFIT IN NORTH AMERICAN OPERATIONS THIS YEAR MERRILL LYNCH HIRED ONE OF PRUDENTIAL SECURITIES' TOP BROKERS AS BIG US BROKERAGE FIRMS SWOOP IN TO TRY TO SNATCH TOP TALENT FROM PRUDENTIAL SUN MICROSYSTEMS SLASHED PRICES AS MUCH AS 50 ON A NEW LINE OF WORKSTATIONS IN A MOVE TO FEND OFF AN IMPENDING ASSAULT FROM INCREASINGLY POWERFUL PERSONAL COMPUTERS GRUMMAN'S STOCK FELL 23 REFLECTING TRADERS' UNCERTAINTY OVER WHETHER RIVAL BIDDERS MARTIN MARIETTA AND NORTHROP WILL MAKE HIGHER OFFERS UNDER AUCTION RULES GRUMMAN SET NORTHERN TELECOM AND BELL CANADA AGREED TO ELIMINATE A LONGSTANDING PREFERREDSUPPLIER ARRANGEMENT A MOVE THAT WILL GIVE US TELECOMMUNICATIONSEQUIPMENT MAKERS NEW OPPORTUNITIES TO EXPORT TO CANADA PEPSI IS EXPECTED TO ANNOUNCE TODAY ITS PLANS TO PUT FRESHNESS DATING ON ITS SOFTDRINK PACKAGES THE COMPANY IS ALSO EXPECTED TO INTRODUCE A NATIONAL AD CAMPAIGN FOR THE STRATEGY SONY SOFTWARE AND WARNER MUSIC GROUP PLAN TO LAUNCH A JOINTVENTURE RADIOSYNDICATION NETWORK THIS YEAR THE VENTURE WILL DISTRIBUTE RADIO PROGRAMMING VIA SATELLITE DIGITAL RADIO AND CONVENTIONAL BROADCASTING MUNICIPALSECURITIES RULE MAKERS DELAYED THE EFFECTIVE DATE OF THEIR PROPOSED RULE TO RESTRICT POLITICAL CONTRIBUTIONS MADE BY BOND DEALERS BONDS LEHMAN BROTHERS TREASURY INDEX 520384 OFF 4885 COMMODITIES OIL 1432 A BARREL UP 24 CENTS DOW JONES FUTURES INDEX 14301 OFF 123 SPOT INDEX 13216 OFF 026 DOLLAR 10313 YEN OFF 092 16735 MARKS UP 00020 9403300003 940330 TOBACCO FIRM SEEKS ANTISMOKING NETWORK'S RECORDS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL LAWYERS FOR AMERICAN TOBACCO CO ARE SEEKING ACCESS TO THE MEMBERSHIP LIST OF A COMPUTER NETWORK USED BY ANTISMOKING GROUPS TO PLOT STRATEGIES AGAINST THE TOBACCO INDUSTRY THE LEGAL ACTION IS BELIEVED TO BE THE FIRST TIME A NETWORK'S RECORDS HAVE BEEN PURSUED THE CASE COULD HAVE A CHILLING EFFECT ON THE DEVELOPMENT AND USE OF NETWORKS COMMUNICATIONS LAW SPECIALISTS SAY LEGAL BATTLES OVER THE PROTECTION OF ELECTRONIC COMMUNICATIONS ARE EXPECTED TO BECOME INCREASINGLY COMMON AS THE SOCALLED INFORMATION SUPERHIGHWAY DEVELOPS THE SUBPOENA FOR THE MEMBERSHIP LIST WAS ISSUED EARLIER THIS MONTH AFTER THE NETWORK WAS MENTIONED IN A DEPOSITION IN A WRONGFULDEATH LAWSUIT FILED BY A SMOKER'S WIDOW AGAINST RJ REYNOLDS TOBACCO CO AND AMERICAN TOBACCO THE SUBPOENA IS PART OF THE PRETRIAL FACTFINDING PROCESS IN THE CASE YESTERDAY ATTORNEYS FOR THE ADVOCACY INSTITUTE WHICH HELPED ORGANIZE THE ANTISMOKING MOVEMENT FILED PAPERS SEEKING TO QUASH THE SUBPOENA ON THE GROUNDS THAT THE INFORMATION SOUGHT IS PROTECTED BY THE FIRST AMENDMENT AND THAT ITS DISCLOSURE COULD LEAD TO HARASSMENT OF THE NETWORK'S MEMBERS ATTORNEYS FOR AMERICAN TOBACCO AGREED TO POSTPONE PURSUING THE SUBPOENA UNTIL NEXT MONTH AFTER A US DISTRICT COURT JUDGE RULES ON WHETHER THE WRONGFULDEATH CASE SHOULD GO FORWARD THE CIGARETTE COMPANIES DECLINED TO COMMENT THE PRIVATE NETWORK CALLED SCARCNET OR THE SMOKING CONTROL ADVOCACY RESOURCE NETWORK HAS BEEN A THORN IN THE INDUSTRY'S SIDE SINCE IT WAS ESTABLISHED IN 1990 IT HOLDS DAILY STRATEGY SESSIONS ON THE LATEST TOBACCO NEWS COMPLETE WITH SUGGESTED SOUND BITES FOR THE MEDIA IT ALSO PROVIDES ITS 200 MEMBERS WHO INCLUDE HEALTH OFFICIALS WITH A RICH ARRAY OF RESOURCES INCLUDING COPIES OF ANTISMOKING LEGISLATION TO PROPOSE IN THEIR CITIES AND THE BIOGRAPHIES AND LIKELY ARGUMENTS OF TOBACCO INDUSTRY LOBBYISTS WHEN PHILIP MORRIS COS SPONSORED A TOUR OF THE ORIGINAL BILL OF RIGHTS IN 1990 ANTISMOKING ADVOCATES USED THE NETWORK TO DOG THE TOUR AT EVERY STOP WITH SUGGESTED PROTESTS AND SLOGANS IT'S LIKE A BOTHERSOME GNAT ON A SUMMER EVENING SAYS WALKER MERRYMAN A TOBACCO INSTITUTE SPOKESMAN IT SERVES A VERY VITAL FUNCTION FOR THE OPPOSITION BASED ON SCARCNET'S SUCCESS IN KNITTING THE ANTISMOKING MOVEMENT INTO A UNIFIED FORCE ALCOHOLCONTROL ACTIVISTS RECENTLY SET UP ALCNET GUNCONTROL PROPONENTS ALSO ARE CONSIDERING A NETWORK OPERATORS OF SCARCNET SAY THE NETWORK WOULD BE JEOPARDIZED IF FORCED TO DIVULGE THE INFORMATION SOUGHT IT'S CLEARLY A FUNDAMENTAL CHALLENGE TO THE INTEGRITY OF THE NETWORK SAYS MICHAEL PERTSCHUK CODIRECTOR OF THE ADVOCACY INSTITUTE IT IS VERY THREATENING MR PERTSCHUK A FORMER FEDERAL TRADE COMMISSION CHAIRMAN SAID IT WILL BE VERY HARD FOR US TO OPEN UP A DIALOGUE WITH FOLKS WORKING ON ISSUES LIKE GUN CONTROL IF IT APPEARS THAT THE NATIONAL RIFLE ASSOCIATION COULD GAIN ACCESS TO THEIR COMMUNICATION SYSTEM LEGAL EXPERTS SAY MANY NETWORKS WOULD SUFFER SETBACKS IF SCARCNET OPERATORS ARE FORCED TO COMPLY WITH THE FARREACHING SUBPOENA WHICH ALSO DEMANDS THE NAMES OF THOSE FUNDING THE NETWORK AND COPIES OF ALL POSTED STRATEGY SESSIONS IF THIS SUBPOENA IS NOT QUASHED THE PROSPECTS FOR CONFIDENTIAL PRIVATE NETWORKS ARE DIMINISHED SAID MARC ROTENBERG A LAW PROFESSOR AT GEORGETOWN UNIVERSITY LAW CENTER AND THE DIRECTOR OF COMPUTER PROFESSIONALS FOR SOCIAL RESPONSIBILITY IF THESE NEW COMPUTER NETWORKS ARE GOING TO DEVELOP AND PERMIT THE TYPE OF FRANK DISCUSSION THAT SCARCNET IS TRYING TO ENCOURAGE THEN WE NEED TO ENSURE THAT THE UNDERLYING CONSTITUTIONAL PRINCIPLES ARE GOING TO BE CARRIED FORWARD INTO THE INFORMATION AGE C THOMAS DIENES PROFESSOR OF LAW AT THE NATIONAL LAW CENTER AT GEORGE WASHINGTON UNIVERSITY SAID SUPPOSE YOU HAD A FORUM ON HOMOSEXUALITY AND HAD TO TURN OVER EVERYONE WHO PARTICIPATED PEOPLE WOULD BE MUCH MORE RELUCTANT TO PARTICIPATE PROF DIENES SAYS NEW RULES ARE NEEDED EACH TIME A NEW MEDIUM OF COMMUNICATION DEVELOPS SUCH AS CABLE TELEVISION NOW THAT WE HAVE THIS ELECTRONIC SUPERHIGHWAY WE WILL HAVE TO CRAFT NEW RULES ABOUT HOW THE FIRST AMENDMENT SHOULD BE APPLIED HE SAID LAWYERS FOR THE AMERICAN TOBACCO WOULDN'T DISCUSS WHY THEY WERE SEEKING INFORMATION ON THE COMPUTER NETWORK TOBACCO INDUSTRY EXECUTIVES SPECULATED THAT THE NETWORK EXCHANGES WOULD BE HELPFUL IF THEY INCLUDED DISCUSSIONS OF MEDICAL RESEARCH THAT WAS INCONCLUSIVE ABOUT THE HEALTH CONSEQUENCES OF SMOKING DAVID C VLADECK DIRECTOR OF THE PUBLIC CITIZEN LITIGATION GROUP WHO IS REPRESENTING THE ADVOCACY INSTITUTE IN THE CASE SAID THE SUPREME COURT RULED IN 1958 THAT THERE ARE CONSTITUTIONAL GUARANTEES COVERING THE FREEDOM OF ASSOCIATION THAT PROTECT ADVOCACY GROUPS FROM HAVING TO TURN OVER MEMBERSHIP LISTS IN THAT CASE ALABAMA TRIED TO FORCE THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE TO TURN OVER ITS LIST OF MEMBERS IN THE STATE OUR SUBMISSION IS THAT OUR DELIBERATIONS AS THEY TAKE PLACE ONLINE AND THE IDENTITY OF THE MEMBERS ARE NO DIFFERENT THAN THE MEMBERSHIP LIST OF THE NAACP SAID MR VLADECK THIS LEGAL CHALLENGE COMES AS ACTIVISTS ARE BECOMING INCREASINGLY ENAMORED OF ONLINE COMMUNICATIONS IN CALIFORNIA FOR INSTANCE A FOUNDATION RECENTLY FINANCED A PROJECT ON REDUCING VIOLENCE THAT INCLUDED GRANTS TO BUY COMPUTERS AND MODEMS FOR UP TO 300 PEOPLE TO ESTABLISH A VIOLENCEPREVENTION COMPUTER NETWORK THE OTHER SIDE USES IT SAYS ANDREW MCGUIRE EXECUTIVE DIRECTOR OF THE PACIFIC CENTER FOR VIOLENCE PREVENTION THE GROUP WORKING TO ESTABLISH THE NETWORK THE NRA'S INSTITUTE FOR LEGISLATIVE ACTION RUNS GUNTALK AN ONLINE SERVICE THAT UPDATES ITS MEMBERS ON PENDING LEGISLATION WE THINK IT'S VALUABLE SAYS TANYA K METAKSA EXECUTIVE DIRECTOR OF THE NRA'S INSTITUTE WE SEE COMPUTER NETWORKING AS A VERY POWERFUL TOOL FOR LEVELING THE PLAYING FIELD IN POLICY CONFLICTS WHICH PIT INSTITUTIONS WITH SUBSTANTIAL RESOURCES AGAINST GRASSROOTS CITIZENS GROUPS SAID MR PERTSCHUK OF THE ADVOCACY INSTITUTE UNTIL SCARCNET CAME ALONG THE TOBACCO CONTROL MOVEMENT RESEMBLED A VERY UNRULY FLOCK OF GEESE FLYING INTO EACH OTHER AND BITING EACH OTHER'S TAIL NOW THEY TEND TO TAKE OFF IN THE SAME GENERAL DIRECTION AND LAND IN THE SAME PLACE A NEW JERSEY COURT HELD THAT SOCALLED RENTTOOWN TRANSACTIONS ARE A FORM OF CREDIT SALE SUBJECT TO TOUGH CONSUMERLENDING LAWS IN A BLOW TO COMPANIES THAT RENT GOODS TO CONSUMERS WITH THE OPTION TO BUY THE TRIALCOURT RULING WHICH IS EXPECTED TO BE APPEALED WOULD SUBJECT RENTTOOWN OPERATORS IN NEW JERSEY TO NEW REGULATIONS INCLUDING STATE USURY LAWS THAT REGULATE CONSUMER INTEREST RATES IT FOLLOWS A SIMILAR DECISION BY WISCONSIN'S HIGHEST COURT EARLIER THIS MONTH COURTS IN SOME OTHER STATES HAVE REACHED THE OPPOSITE CONCLUSION THE RENTTOOWN INDUSTRY HAS BEEN CRITICIZED BY VARIOUS CONSUMER GROUPS ACROSS THE COUNTRY WHO CONTEND THAT ITS BUSINESS PRACTICES TAKE ADVANTAGE OF THE POOR UNDER A TYPICAL RENTTOOWN TRANSACTION RENTERS WHO MAKE WEEKLY OR MONTHLY PAYMENTS USUALLY FOR A YEAR AND A HALF BECOME OWNERS CUSTOMERS WHO MAKE EVERY INSTALLMENT MAY END UP PAYING SEVERAL TIMES THE ITEM'S RETAIL VALUE IN THE NEW JERSEY CASE THE PLAINTIFFS HAD ALLEGED THAT THE DEFENDANT CONTINENTAL RENTALS HAD CHARGED EFFECTIVE INTEREST RATES RANGING FROM 71 TO 148 AND THAT ONE OF THE PLAINTIFFS HAD MADE RENTAL PAYMENTS OF 333586 COVERING MERCHANDISE WITH A CASH PRICE OF 278512 AND STILL HAD HER FURNISHINGS REPOSSESSED BY THE COMPANY IT IS APPROPRIATE TO PENETRATE THE TECHNIQUE AND REACH THE ECONOMIC VERITY OF THE TRANSACTION PASSAIC COUNTY SUPERIOR COURT JUDGE HERBERT ALTERMAN HELD IN A DECISION RELEASED YESTERDAY THE SUBSTANCE OF THESE AGREEMENTS REQUIRES THAT THEY BE VIEWED AS SALES AGREEMENTS NOT LEASES IN RULING ON MOTIONS FOR SUMMARY JUDGMENT IN THE CASE JUDGE ALTERMAN HELD THAT VARIOUS CONSUMER CREDIT LAWS INCLUDING THE FEDERAL TRUTHINLENDING ACT THE NEW JERSEY RETAIL INSTALLMENT SALES ACT AND THE NEW JERSEY CONSUMER FRAUD ACT ALL APPLIED TO THE DEFENDANT IN THE CASE CONTINENTAL RENTALS THE JUDGE ALSO HELD THAT THE COMPANY HAD CHARGED INTEREST THAT WAS IN EXCESS OF THE STATE LIMIT OF 30 A YEAR AND THAT THE INTEREST CHARGED REPRESENTED AN UNCONSCIONABLE PRACTICE OBVIOUSLY WE AREN'T TOO HAPPY WITH IT VICTOR RABBAT A TOTOWA NJ LAWYER FOR CONTINENTAL SAID OF THE RULING MR RABBAT SAID THE COMPANY A LOCALLY OWNED CONCERN WITH OFFICES IN PATTERSON AND PASSAIC NJ WOULD APPEAL BILL KEESE EXECUTIVE DIRECTOR OF THE ASSOCIATION OF PROGRESSIVE RENTAL ORGANIZATIONS AN AUSTIN TEXAS TRADE GROUP FOR RENTTOOWN COMPANIES SAID THIS RULING FLIES IN THE FACE OF 36 STATE LEGISLATURES AND SEVERAL COURT DECISIONS THE INDUSTRY HAS BACKED LAWS IN THAT NUMBER OF STATES THAT IMPOSE CERTAIN RULES ON OPERATORS AND WHICH RECOGNIZE RENTTOOWN TRANSACTIONS AS DISTINCT FROM SALES THE INDUSTRY POSITION IS THAT RENTTOOWN DEALS AREN'T CREDIT SALES AND THEREFORE AREN'T SUBJECT TO INTERESTRATE REGULATIONS BECAUSE MOST CUSTOMERS DON'T ULTIMATELY BUY THE PRODUCT AND CAN CANCEL AT ANY TIME GREEN VS CONTINENTAL RENTALS NJ SUPERIOR COURT PASSAIC COUNTY NO L 318290 DNA FINGERPRINTING CAN BE USED AS EVIDENCE IN CRIMINAL CASES NEW YORK'S HIGHEST COURT RULED THE RULING ENDORSES THE USE OF GENETIC PROFILES TAKEN FROM BLOOD OR HAIR SAMPLES FOR INSTANCE TO LINK A DEFENDANT TO EVIDENCE TAKEN AT A CRIME SCENE ALTHOUGH EACH PERSON HAS A UNIQUE GENETIC MAKEUP CRITICS OF THE PROCESS ARGUE THAT FALSE MATCHES OCCUR BECAUSE OF LAB ERRORS AND INDIVIDUALS' SIMILAR GENETIC PATTERNS IN ITS FIRST RULING ON DNA EVIDENCE IN CRIMINAL CASES NEW YORK'S HIGH COURT SAID DNA PROFILING EVIDENCE IS GENERALLY ACCEPTED AS RELIABLE BY THE RELEVANT SCIENTIFIC COMMUNITY THE CASE BEFORE THE COURT OF APPEALS INVOLVED THE 1989 MURDER AND RAPE CONVICTION OF GEORGE WESLEY IN ONE OF THE FIRST CASES IN THE NATION THAT CITED DNA EVIDENCE THE HIGH COURT IN A 32 DECISION ALSO FOUND THAT DNA EVIDENCE MET SUFFICIENT SCIENTIFIC STANDARDS AT THE TIME OF THE TRIAL IN A SEPARATE OPINION TWO OF THE HIGH COURT'S JUDGES INCLUDING CHIEF JUDGE JUDITH KAYE AFFIRMED THE CONVICTION BASED ON OTHER EVIDENCE WHILE FINDING THAT DNA EVIDENCE AT THE TIME HADN'T GAINED GENERAL ACCEPTANCE IN THE SCIENTIFIC COMMUNITY BUT THE CONCURRING OPINION SAID THAT SUCH EVIDENCE IS TODAY GENERALLY ACCEPTED AS RELIABLE A GROWING FOCUS IN THE DEBATE OVER DNA EVIDENCE CONCERNS WHAT STANDARDS TO USE IN EVALUATING THE EVIDENCE PROF BARRY SCHECK A PROFESSOR AT CARDOZO LAW SCHOOL SAID THE HIGH COURTS OF SEVERAL STATES HAVE RECOMMENDED THAT TOUGHER STANDARDS BE ADOPTED TO PROTECT AGAINST POTENTIAL ERRORS THE PEOPLE VS GEORGE WESLEY NEW YORK COURT OF APPEALS 3 NO 18 NOTED FORMER US TRADE REPRESENTATIVE CARLA ANDERSON HILLS AND HER HUSBAND FORMER SECURITIES AND EXCHANGE COMMISSION CHAIRMAN RODERICK HILLS WILL BECOME PARTNERS IN THE WASHINGTON OFFICE OF THE 300ATTORNEY NEW YORK LAW FIRM MUDGE ROSE GUTHRIE ALEXANDER & FERDON EFFECTIVE APRIL 1 THEY WERE PARTNERS AT THE NEW YORK LAW FIRM SHEA & GOULD WHICH DECIDED IN JANUARY TO DISBAND MS HILLS WILL REMAIN HEAD OF THE INTERNATIONAL CONSULTING GROUP HILLS & CO WHICH WILL WORK CLOSELY WITH MUDGE ROSE ON INTERNATIONAL MATTERS THE LAW FIRM SAID RICHARD B SCHMITT AND WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9403300002 940330 FOREIGN EXCHANGE DOLLAR RECEIVES PUMMELING AGAINST YEN AS JAPANESE TRADE PACKAGE DISAPPOINTS BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR RECEIVED A DRUBBING AGAINST THE YEN YESTERDAY ON DISAPPOINTMENT OVER A JAPANESE PLAN TO OPEN ITS DOMESTIC MARKETS TO FOREIGN GOODS WHICH FED FEARS THE US WOULD RENEW OFFICIAL PRESSURE TO BOOST THE VALUE OF JAPAN'S CURRENCY BUT THE DOLLAR BRUSHED OFF STEEP SLIDES IN THE US STOCK AND BOND MARKETS TO STAGE A RATHER REMARKABLE AND SOMEWHAT BAFFLING COMEBACK AGAINST EUROPEAN CURRENCIES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16735 MARKS UP FROM 16715 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10313 YEN CLOSE TO AN INTRADAY LOW OF 10305 YEN AND DOWN FROM 10405 YEN MONDAY STERLING WAS TRADING AT 14845 DOWN FROM 14960 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10275 YEN AND AT 16715 MARKS THE JAPANESE GOVERNMENT'S LONGAWAITED PACKAGE OF MARKETOPENING MEASURES ANNOUNCED DURING ASIAN TRADING PROVED TO BE THE ANTICLIMAX THE MARKET HAD LONG ANTICIPATED THE PACKAGE WAS MORE NOTED FOR WHAT IT LEFT OUT THAN FOR WHAT IT HAS IN IT AND PERHAPS THE BIGGEST OMISSION TRADERS SAID WAS NUMERICAL TRADE TARGETS JAPAN'S REFUSAL TO OFFER ANY HAD LED TO THE COLLAPSE OF USJAPAN TRADE TALKS IN FEBRUARY THE LATEST PACKAGE ALSO DIDN'T MAKE ANY COMMITMENTS IN AREAS SUCH AS TAX CUTS AND GOVERNMENT PROCUREMENT THE HEART OF THE ISSUE IS THE US'S SIMMERING DISPLEASURE OVER JAPAN'S 60 BILLION TRADE SURPLUS WITH THE US AND ITS REFUSAL TO OPEN ITS MARKETS TO US GOODS TRADERS FEAR THAT A LACK OF JAPANESE PROGRESS IN THE TRADE DISPUTE WILL COMPEL THE US TO SEEK TO BOOST THE VALUE OF THE YEN TO SLASH ITS DEFICIT LATE IN NEW YORK TRADING THE DOLLAR PUSHED TO ITS INTRADAY LOWS AGAINST THE YEN WHEN US TRADE REPRESENTATIVE MICKEY KANTOR SAID THAT THE MEASURES FELL SHORT OF US EXPECTATIONS AND AREN'T SUFFICIENT TO REVIVE THE COLLAPSED TRADE TALKS INDEED THE DOLLAR HAD BEEN PRESSURED LOWER ALL OF YESTERDAY IN ANTICIPATION OF A NEGATIVE US RESPONSE TO THE PACKAGE SAID BELAL KHAN SENIOR CUSTOMER DEALER AT THE BANK OF TOKYO IN NEW YORK MR KHAN SAID THE DOLLAR SOON MAY HIT 10040 YEN THE POSTWORLD WAR II LOW THAT IT REACHED LAST AUGUST I WOULDN'T DOUBT A TEST OF HISTORIC LOWS POSSIBLY IN THE NEXT FEW DAYS MR KHAN SAID NOTING THAT ANY BANK OF JAPAN INTERVENTION TO HALT THE DOLLAR'S PLUNGE WOULD BE FRUITLESS WITHOUT COORDINATED INTERVENTION BY OTHER CENTRAL BANKS JAPAN'S CENTRAL BANK WAS SAID TO HAVE INTERVENED REPEATEDLY EARLIER YESTERDAY BUT FAILED TO STEM THE DOLLAR'S SLIDE ELSEWHERE TRADERS EXPRESSED PUZZLEMENT AT THE US CURRRENCY'S TECHNICAL STRENGTHENING AGAINST THE MARK AMONG THE FACTORS THAT SHOULD HAVE WEAKENED THE DOLLAR WERE YESTERDAY'S SLIDES IN THE US BOND AND STOCK MARKETS THE YIELD ON THE 30YEAR BOND ROSE ABOVE 7 HELPING TO TRIGGER A SHARP 6333POINT DROP IN THE DOW JONES INDUSTRIAL AVERAGE ITS STEEPEST ONEDAY FALL SINCE FEB 4 WHEN IT PLUNGED 96 POINTS IN ANOTHER NEGATIVE FOR THE DOLLAR MR PORTER SAID MARKET EXPECTATIONS ARE FOR ONLY A SMALL EASING TODAY IN THE RATE FOR THE BUNDESBANK'S SECURITIES REPURCHASE AGREEMENTS OR REPOS REPOS ARE THE BUNDESBANK'S MAIN INSTRUMENT FOR INFLUENCING GERMANY'S MONEY MARKET THE GERMAN CENTRAL BANK'S SLOW PACE IN CUTTING ITS REPO RATES HAS FRUSTRATED THE CURRENCY MARKET WHICH EARLIER IN THE YEAR HAD BANKED ON A FASTER CONVERGENCE OF US AND GERMAN INTEREST RATES MR PORTER SAID HE EXPECTS A BUNDESBANK SHAVING OF ABOUT TWO TO THREE BASIS POINTS ON ITS REPOS FROM THE CURRENT LEVEL OF 580 9403300001 940330 BUSINESS BRIEF MEDIA VISION TECHNOLOGY INC SHAREHOLDERS FILE 5 LAWSUITS RELATED TO STOCK'S DECLINE MEDIA VISION TECHNOLOGY INC SAID IT HAS BEEN SERVED WITH FIVE LAWSUITS FROM SHAREHOLDERS ALLEGING IT VIOLATED SECURITIES LAWS THROUGH PUBLIC STATEMENTS PRECEDING LAST WEEK'S ANNOUNCEMENT OF AN EXPECTED FIRSTQUARTER LOSS THE FREMONT CALIF MAKER OF COMPUTER SOUND CARDS AND OTHER EQUIPMENT DENIED THE CLAIMS AND INDICATED IT INTENDS TO VIGOROUSLY DEFEND THE SUITS WHICH IT SAID WERE FILED IN US DISTRICT COURT IN SAN FRANCISCO FRIDAY AND MONDAY MEDIA VISION'S STOCK PLUMMETED 1050 THURSDAY TO 11 IN NASDAQ STOCK MARKET TRADING AFTER IT DISCLOSED THAT UNEXPECTED PRICE CUTS AND DELAYED SHIPMENT OF A PRODUCT WOULD LEAD TO A SUBSTANTIAL LOSS IN THE FIRST QUARTER THE STOCK FELL 1 YESTERDAY TO 975 CHIEF EXECUTIVE PAUL JAIN TOLD A MARCH 16 ANALYSTS' CONFERENCE THAT ALL APPEARED WELL WITH THE COMPANY MANAGEMENT HAS SINCE INDICATED IT WAS NOT FULLY AWARE OF THE DEPTH OF THE PROBLEMS UNTIL DAYS AFTER THOSE STATEMENTS 9403290156 940329 RTC PLANS TO REOPEN MANY INVESTIGATIONS INTO THRIFT VIOLATIONS WASHINGTON THE RESOLUTION TRUST CORP WILL REOPEN MANY INVESTIGATIONS INTO POSSIBLE THRIFTRELATED VIOLATIONS THE RTC'S GENERAL COUNSEL SAID IN AN INTERNAL MEMORANDUM ELLEN KULKA WHO RECENTLY BECAME GENERAL COUNSEL FOR THE SAVINGSANDLOAN CLEANUP AGENCY SENT THE MEMO TO TOP RTC LEGALFIELD PEOPLE AND STAFF ATTORNEYS CONCERNED WITH ENFORCEMENT THE MEMO DESCRIBED A MORE STREAMLINED LEGAL STRUCTURE IN ACCORD WITH MANAGEMENT REFORMS THAT WERE MANDATED IN LEGISLATION ENACTED LAST DECEMBER THE REOPENED INVESTIGATIONS RESULT FROM RECENT LEGISLATION THAT EXTENDED THE STATUTE OF LIMITATIONS FOR LEGAL ACTIONS INVOLVING MANY THRIFTRELATED VIOLATIONS MS KULKA'S MEMO SAID THAT INVESTIGATIONS OF POSSIBLE INTENTIONAL WRONGDOING WILL MEAN CONCERTED EFFORT BY LEGAL AND INVESTIGATIVE PERSONNEL THE NEW INVESTIGATIONS WILL PROBABLY INVOLVE SEVERAL HUNDRED CASES THAT WERE PREVIOUSLY CLOSED AN RTC SPOKESMAN SAID HE SAID THE INQUIRIES MIGHT UNCOVER NEW EVIDENCE BUT DIDN'T PROMISE ANY DRAMATIC RESULTS IN DECEMBER CONGRESS EXTENDED THE RTC'S STATUTE OF LIMITATIONS TO FIVE YEARS FROM THREE YEARS FOR A VARIETY OF CIVIL LAWSUITS IN FEBRUARY THE STATUTE OF LIMITATIONS WAS EXTENDED TO THE END OF 1995 FOR MANY S&L OFFICERS DIRECTORS LAWYERS AND ACCOUNTANTS FOR WHICH THE FIVEYEAR TIME LIMIT WAS TO EXPIRE FEB 28 LAST MONTH'S ACTION WAS TAKEN IN RESPONSE TO SEN HOWARD METZENBAUM'S D OHIO URGINGS FOR THE RTC TO CONTINUE INVESTIGATING S&LS IN GENERAL AND TO SEN ALFONSE D'AMATO'S R NY URGING FOR THE RTC TO CONTINUE PROBING ANY WRONGDOING TIED TO MADISON GUARANTY SAVINGS & LOAN MADISON GUARANTY WAS THE THRIFT INVOLVED IN THE CONTROVERSY SURROUNDING THE CLINTONS' WHITEWATER DEVELOPMENT CO INVESTMENT IN ARKANSAS 9403290154 940329 TECHNOLOGY & HEALTH MICROGRAFX EXPECTS TO REPORT A LOSS FOR CURRENT PERIOD BY ARTHUR BUCKLER STAFF REPORTER OF THE WALL STREET JOURNAL MICROGRAFX INC SAYING NEW VERSIONS OF SOME OF ITS SOFTWARE BECAME TOO POWERFUL TOO FAST WARNED THAT IT WILL POST A LOSS FOR THE CURRENT QUARTER THE GRAPHICSSOFTWARE CONCERN ALSO SAID ITS CHAIRMAN AND COFOUNDER J PAUL GRAYSON WILL BECOME MORE ACTIVELY INVOLVED IN THE BUSINESS BY ASSUMING THE ADDITIONAL POST OF VICE PRESIDENT OF PRODUCT DEVELOPMENT ALTHOUGH REMAINING CHAIRMAN MR GRAYSON 44 YEARS OLD WILL REPORT IN HIS NEW JOB TO 38YEAROLD GORDON TUCKER WHO WAS BROUGHT IN AS MICROGRAFX'S PRESIDENT AND CHIEF EXECUTIVE OFFICER IN AUGUST WITH A MANDATE TO TURN AROUND THE COMPANY INDUSTRY ANALYSTS HAD BEEN PREDICTING A PROFIT FOR MICROGRAFX'S FISCAL FOURTH QUARTER WHICH ENDS THURSDAY A YEAR EARLIER THE COMPANY HAD A LOSS OF 43 MILLION ON REVENUE OF 11 MILLION BEFORE YESTERDAY'S ANNOUNCEMENT WHICH CAME AFTER THE END OF NASDAQ STOCK MARKET TRADING MICROGRAFX'S SHARES CLOSED AT 8375 DOWN 375 CENTS MR TUCKER SAID REVENUE IN THE CURRENT QUARTER WILL BE UP FROM A YEAR AGO BUT NOT ENOUGH TO ALLOW A PROFIT HE LARGELY BLAMED STRUGGLING SALES IN NORTH AMERICA OF NEW VERSIONS INTRODUCED LAST YEAR OF TWO PROGRAMS PUT OUT BY THE RICHARDSON TEXAS COMPANY THE UPGRADED VERSIONS ARE VERY ADVANCED BUT REQUIRE TOO MUCH COMPUTING POWER FOR MANY EXISTING PERSONAL COMPUTERS MR TUCKER SAID ONE OF THE PROGRAMS WHICH ALLOWS THE USER TO DRAW ON A PC REPRESENTS ABOUT A THIRD OF MICROGRAFX'S BUSINESS HE SAID IT JUST WON'T RUN ON MOST OF OUR CUSTOMERS' MACHINES HE SAID MR TUCKER WHO BEFORE JOINING MICROGRAFX LED THE DEVELOPMENT OF ROTISSERIE CHICKEN AT PEPSICO INC'S KFC UNIT SAID ONE OF HIS GOALS IS TO MAKE THE SOFTWARE COMPANY DRIVEN MORE BY CUSTOMERS THAN BY TECHNOLOGY THE CEO SAID THE BOARD APPROVED LAST WEEK A BUSINESS PLAN HE PRESENTED TO LAUNCH SOME NEW PRODUCTS AND TO REPOSITION SOME EXISTING ONES BUT HE WOULDN'T ELABORATE LAST MONTH THE COMPANY ANNOUNCED AN ALLIANCE WITH THE MAKER OF CRAYOLA CRAYONS A HALLMARK CARDS INC UNIT TO DEVELOP A LINE OF DRAWING SOFTWARE FOR CHILDREN MR TUCKER SAID THE FIRST TWO PROGRAMS IN THAT LINE WILL BE OUT NEXT MONTH WITH PRICE TAGS UNDER 50 IN AN UNUSUAL STRATEGY FOR SOFTWARE MICROGRAFX PLANS TO ADVERTISE THE CRAYOLA PROGRAMS ON TELEVISION DESPITE A WAVE OF CONSOLIDATION IN THE SOFTWARE INDUSTRY MR TUCKER SAID MICROGRAFX HAS NO DESIRE TO MERGE BUT ISN'T ADOPTING ANY DEFENSIVE MEASURES EITHER 9403290153 940329 WHO'S NEWS SILAS KEEHN PRESIDENT OF THE CHICAGO FED TO RETIRE IN SUMMER CHICAGO SILAS KEEHN PRESIDENT OF THE FEDERAL RESERVE BANK IN CHICAGO SAID HE PLANS TO RETIRE THIS SUMMER MR KEEHN NOTED THAT HE WILL BE 64 YEARS OLD AND WILL HAVE SERVED FOR 13 YEARS AS PRESIDENT OF THE BANK AT THE END OF JUNE IT'S JUST THE RIGHT TIME FOR THIS TRANSITION TO TAKE PLACE HE SAID UNLIKE FEDERAL RESERVE BOARD GOVERNORS WHO ARE APPOINTED BY THE WHITE HOUSE AND CONFIRMED BY THE SENATE PRESIDENTS OF FEDERAL RESERVE DISTRICT BANKS ARE APPOINTED BY THE BANKS' DIRECTORS WHO COME FROM THE PRIVATE SECTOR THEIR APPOINTMENTS ARE SUBJECT TO APPROVAL BY THE BOARD OF GOVERNORS HOWEVER PRESIDENTS SIT ON THE POWERFUL OPEN MARKET COMMITTEE ALONG WITH FED GOVERNORS TO SET INTEREST RATES AS A GROUP THE PRESIDENTS ARE CONSIDERED TO BE HAWKISH ON PUSHING UP RATES TO CONTROL INFLATION BUT MR KEEHN'S VOTE HAS BEEN CONSIDERED AMONG THE MORE MODERATE OF THE PRESIDENTS REGARDING CONTROL OF MONEYSUPPLY GROWTH A BANK SPOKESWOMAN SAID THAT WHEN ASKED WHETHER HE'S A HAWK OR A DOVE ON INFLATION THE PRESIDENT PREFERS TO SAY HE'S AN EAGLE THE 12 DISTRICT BANK PRESIDENTS ARE GRANTED ONLY FIVE FOMC VOTES ALTHOUGH THEY ATTEND AND PARTICIPATE IN ALL MEETINGS MR KEEHN VOTED LAST AT THE DECEMBER 1993 MEETING THE CHICAGO DISTRICT ISN'T SCHEDULED TO RESUME OFFICIAL VOTING IN THE FOMC UNTIL JANUARY 1995 THE CHICAGO RESERVE BANK INCLUDES ALL OR PARTS OF ILLINOIS INDIANA IOWA MICHIGAN AND WISCONSIN RICHARD G CLINE CHAIRMAN OF THE DISTRICT BANK AND CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GASUTILITY HOLDING COMPANY NICOR INC SAID A SEARCH COMMITTEE WILL BE FORMED TO SELECT A NEW PRESIDENT FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN SAID THAT MR KEEHN HAS DONE AN EXCELLENT JOB AND THAT HIS COUNSEL WILL BE MISSED AT THE FOMC WHERE HE PROVIDED WISE INSIGHTS TO POLICY 9403290152 940329 TECHNOLOGY & HEALTH US AIDS ORPHANS MAY REACH 125000 IN 2000 STUDY SAYS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL THE PROBLEM OF AIDS ORPHANS LONG A CONCERN IN AFRICA WHERE THE EPIDEMIC HAS PRIMARILY AFFECTED HETEROSEXUALS IS ABOUT TO BURGEON IN THE US ACCORDING TO A NEW YORK RESEARCH REPORT US CHILDREN ORPHANED BY AIDS ARE PROJECTED TO TOTAL BETWEEN 72000 AND 125000 BY THE YEAR 2000 ACCORDING TO THE ORPHAN PROJECT A STUDY GROUP RUN BY THE FUND FOR THE CITY OF NEW YORK THAT INCLUDES 30000 SUCH ORPHANS IN NEW YORK ALONE THE STUDY'S AUTHORS FORECAST THE SPOTLIGHT ON AIDS ORPHANS AND ON THE ATTENDANT PROBLEMS OF CUSTODY HOUSING AND MENTALHEALTH CARE UNDERSCORES THE EPIDEMIC'S SHIFT IN THE US FROM AN ILLNESS OF GAY MEN AND INTRAVENOUSDRUG USERS TO ONE THAT INCREASINGLY AFFECTS HETEROSEXUALS OFTEN THOSE WHO ARE PARTNERS OF DRUG USERS IN 1993 FOR EXAMPLE THE US CENTERS FOR DISEASE CONTROL SAID AIDS CASES RESULTING FROM HETEROSEXUAL CONTACT GREW 130 TO 9288 FROM 4045 IN 1992 OVERALL HETEROSEXUAL AIDS CASES HAVE MUSHROOMED TO 9 OF THE TOTAL US CASELOAD FROM LESS THAN 2 IN 1985 STUDY AUTHOR DAVID MICHAELS AN EPIDEMIOLOGIST AT THE CITY UNIVERSITY OF NEW YORK CONTENDED HIS FIGURES ARE CONSERVATIVE BECAUSE THEY FOCUS ON CHILDREN AND TEENAGERS ORPHANED BY THE DEATH OF THEIR MOTHERS CHILDREN WHOSE FATHERS DIE AREN'T INCLUDED AS A RESULT OF A LACK OF DATA HE ALSO POINTED OUT THAT WHILE SOME CHILDREN OF INFECTED MOTHERS ACQUIRE THE VIRUS MOST AIDS ORPHANS ARE UNINFECTED RECENT FINDINGS THAT A WELLCOME PLC DRUG BLOCKS THE SPREAD OF THE AIDS VIRUS FROM MOTHER TO CHILD WILL INCREASE THE URGENCY OF THE SITUATION HE ADDED THE GOOD NEWS THAT AZT SEEMS TO REDUCE HIV TRANSMISSION TO NEWBORNS IS UNFORTUNATELY ACCOMPANIED BY THE BAD NEWS THAT INFANTS SPARED FROM AIDS WILL STILL BE ORPHANED 9403290151 940329 TECHNOLOGY & HEALTH SPECTRUM SAYS SIX BOARD MEMBERS RESIGN THEIR SEATS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SPECTRUM INFORMATION TECHNOLOGIES INC'S LEGAL TROUBLES LED SIX BOARD MEMBERS TO QUIT INCLUDING FORMER CHAIRMAN PETER CASERTA THE COMPANY SAID A SEVENTH DIRECTOR WILL SOON LEAVE THE LITTLE WIRELESS TECHNOLOGY COMPANY WHICH WOULD BE LEFT WITH FOUR BOARD MEMBERS IS STRUGGLING UNDER A FEDERAL PROBE INTO POSSIBLE STOCK HYPING LAST WEEK FEDERAL POSTAL INSPECTORS RAIDED AN AFFILIATED FINANCIAL SERVICES 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 YESTERDAY EDWARD MASKALY SPECTRUM'S CHAIRMAN SAID THE BOARD WILL HAVE SEVEN MEMBERS ONCE REPLACEMENTS ARE NAMED HE SAID THE DIRECTORS WHO RESIGNED ARE MOTIVATED BY THE INTERESTS OF OUR SHAREHOLDERS BUT A PERSON CLOSE TO SPECTRUM SAID THEY RESIGNED BECAUSE THEY DECIDED THAT WITH PEOPLE TAKEN OUT IN HANDCUFFS LAST WEEK THEY DIDN'T WANT TO BE ASSOCIATED WITH THE COMPANY ANYMORE PARADIGM SHARES A HEADQUARTERS BUILDING WITH SPECTRUM INCLUDED IN THE RESIGNATIONS WHICH OCCURRED LAST FRIDAY WERE OUTSIDE DIRECTORS MICHAEL D MADDEN AN EXECUTIVE MANAGING DIRECTOR AT KIDDER PEABODY & CO AND FORMER ASTRONAUT THOMAS P STAFFORD THE PERSON CLOSE TO SPECTRUM SAID GENERAL ELECTRIC CO WHICH OWNS KIDDER ORDERED MR MADDEN TO QUIT THE BOARD IN LIGHT OF SPECTRUM'S RECENT PROBLEMS BUT MR MADDEN DENIED THIS I HAVE INCREASING RESPONSIBILITIES AT KIDDER INCLUDING WORK IN ASIA PACIFIC AND I COULDN'T GET INVOLVED IN SPECTRUM ANYMORE HE SAID ANOTHER OUTSIDE DIRECTOR JOSEPH H ALLEN A FORMER GROUP PRESIDENT AT MCGRAWHILL INC PLANS TO RESIGN ONCE A REPLACEMENT HAS BEEN FOUND SPECTRUM SAID OTHER SPECTRUM EXECUTIVES WHO HAVE QUIT THE BOARD ARE ANDREW MIGLIORINI PRESIDENT OF SPECTRUM CELLULAR A SUBSIDIARY JAMES L PATEREK MR CASERTA'S NEPHEW AND THE PRESIDENT OF SPECTRUM UNIT YIELD TECHNIGLOBAL INC AND A WERNER PLEUS THE COMPANY'S INVESTOR RELATIONS CHIEF A COMPANY SPOKESMAN SAID THE THREE EXECUTIVES WILL STAY WITH SPECTRUM IN THEIR CURRENT JOBS MR CASERTA RECENTLY TOOK A LEAVE OF ABSENCE FROM SPECTRUM TO CLEAR HIS NAME ACCORDING TO SPECTRUM UNTIL JANUARY PARADIGM OPERATED AS CASERTA GROUP INC FIVE EMPLOYEES OF PARADIGM INCLUDING MR CASERTA'S SONINLAW WERE CHARGED WITH WIRE AND MAIL FRAUD ALL HAVE PLEADED NOT GUILTY WHILE MR MADDEN DENIED BEING A MEMBER OF CASERTA GROUP'S ADVISORY BOARD ITS DOCUMENTS LIST HIM AND MR ALLEN AND MR STAFFORD AS ADVISERS THE FEDERAL COMPLAINT FILED IN BROOKLYN FEDERAL COURT STATES THAT CASERTA GROUP/PARADIGM BILKED NUMEROUS SMALL COMPANIES OUT OF FEES FOR FINANCIAL SERVICES THAT WERE NEVER DELIVERED SPECTRUM WAS QUOTED AT 28125 UP 125 CENTS IN OVERTHECOUNTER TRADING 9403290150 940329 WHO'S NEWS TWA PICKS UPSTART RENO AIR'S ERICKSON TO BE ITS PRESIDENT AND OPERATING CHIEF BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL TRANS WORLD AIRLINES NAMED JEFFREY H ERICKSON CURRENTLY CHIEF EXECUTIVE OFFICER OF UPSTART RENO AIR AS ITS PRESIDENT AND CHIEF OPERATING OFFICER ADDING MANAGEMENT DEPTH TO TWA WHICH LOST ITS TWO TOP OFFICERS IN JANUARY THREE MONTHS AGO TWA WAS STUNG BY THE RESIGNATIONS OF WILLIAM R HOWARD ITS CHAIRMAN AND CEO AND GLENN ZANDER ITS COVICE CHAIRMAN WHO HAD BEEN WITH THE AIRLINE FOR MORE THAN 20 YEARS AFTER ONLY SIX MONTHS ON THE JOB MR HOWARD HAD HAD CLASHES WITH MR ZANDER AND OTHER SENIOR OFFICERS OVER STRATEGIC PLANS PRICING MOVES AND OTHER ISSUES ACCORDING TO TWA MANAGERS MR HOWARD HAS REFUSED TO DISCUSS THE MATTER AMID THOSE DISPUTES THE TWO OFFICERS QUIT LEAVING DIRECTORS OF THE NATION'S SEVENTHLARGEST AIRLINE SCRAMBLING TO FIND SUCCESSORS IMMEDIATELY THEY PICKED DONALD R CRAIB JR A TWA DIRECTOR AND FORMER CHAIRMAN OF ALLSTATE INSURANCE CO TO BE TWA'S NEW CHAIRMAN AND CEO MR CRAIB 68 YEARS OLD HADN'T RUN AN AIRLINE BEFORE SINCE THE MANAGEMENT SHAKEUP INDUSTRY EXECUTIVES HAVE EXPECTED TWA WHICH EMERGED FROM BANKRUPTCYLAW PROTECTION LAST NOVEMBER TO SEEK A NO 2 OFFICER WITH AIRLINE OPERATING EXPERIENCE MR ERICKSON 49 HAS SPENT A QUARTER CENTURY IN THE AIRLINE INDUSTRY STARTING AS A SENIOR ENGINEER WITH PAN AMERICAN WORLD AIRWAYS HE ALSO HELD MANAGEMENT POSITIONS AT ALOHA AIRLINES MIDWAY AIRLINES AND CONTINENTAL AIRLINES AT TWA HE WILL WORK WITH ROBIN HH WILSON WHO REMAINS VICE CHAIRMAN AND HEAD OF AIRLINE OPERATIONS AS CEO AND PRESIDENT OF RENO AIR MR ERICKSON CHERRYPICKED UNDERUSED OR OVERPRICED WESTERN ROUTES AND EXPANDED INTO THEM THE AIRLINE AND ITS STOCK PRICE TOOK OFF RAPIDLY IN ITS FIRST YEAR SINCE ITS MAIDEN FLIGHT IN JULY 1992 THE RENO NEV CARRIER HAS GROWN TO A FLEET OF 17 JETS AND FLIES TO 11 WESTERN CITIES MR ERICKSON PUT THE TINY CARRIER ON THE MAP THIS TIME LAST YEAR IN A DAVIDANDGOLIATH BATTLE AGAINST NORTHWEST AIRLINES RENO CHARGED THAT NORTHWEST TOOK ILLEGAL ANTICOMPETITIVE ACTIONS TO THWART ITS ENTRY INTO THE MINNEAPOLISRENO MARKET IN A HIGHPROFILE REGULATORY SLAP THAT SIGNALED A PROTECTIONIST STANCE TOWARD SMALLER AIRLINES THE CLINTON ADMINSTRATION LAST MARCH FORCED NORTHWEST TO ABANDON PLANS TO ENTER THREE OF RENO'S MARKETS AND UNDERCUT ITS DISCOUNT FARES BUT AMID INTENSE PRICE COMPETITION IN THE MIDWEST RENO HAD TO ABORT ITS EXPANSION THERE AFTER A FEW DIFFICULT MONTHS THAT CONTRIBUTED TO A DROP IN RENO'S STOCK PRICE FROM A 52WEEK HIGH OF 2175 LAST YEAR TO A 52WEEK LOW YESTERDAY OF 5875 DOWN 25 CENTS IN NASDAQ STOCK MARKET TRADING WE WON THE BATTLE BUT NOT THE WAR MR ERICKSON SAID IN AN INTERVIEW RENO SAID IT NAMED ITS CHAIRMAN LEE HYDEMAN TO THE ADDED POST OF CEO AND CHOSE BOB REDING FORMERLY VICE PRESIDENT OF OPERATIONS AS PRESIDENT AND CHIEF OPERATING OFFICER ANALYSTS GAVE MR ERICKSON'S RUN AT RENO MIXED REVIEWS THE GOOD NEWS IS HE MOVES QUICKLY TO FIX MISTAKES SAID SAMUEL BUTTRICK AN AIRLINE ANALYST WITH KIDDER PEABODY & CO NOTING THAT INTENSE COMPETITION BY UNITED AIRLINES AND SOUTHWEST AIRLINES IS SQUEEZING SMALLER CARRIERS TO THE SIDELINES IN THE WESTERN US THE BAD NEWS IS THE MISTAKES ARE MADE IN THE FIRST PLACE WHEN HE ASSUMES HIS TWA JOBS IN MIDAPRIL MR ERICKSON FACES AN AIRLINE MUCH IN NEED OF REPAIR ITS FLEET IS ONE OF THE OLDEST AMONG THE MAJORS EARLIER THIS MONTH TWA HAD TO ABANDON ITS ATLANTA HUB TO DEFEND ITS CORE MIDWESTERN MARKETS FROM LOWFARE RIVALS SUCH AS SOUTHWEST AND IT HAS HAD TO SCALE BACK ITS EUROPEAN SERVICE AMID COMPETITION FROM BIGGER AND FINANCIALLY STRONGER AIRLINES TWA IS EXPECTED TO REPORT FOURTHQUARTER AND YEAREND LOSSES THIS WEEK STILL MR ERICKSON SAID HE IS OPTIMISTIC ABOUT TWA I THINK THEIR COST STRUCTURE IS PRETTY WELL PLACED AND CAN BE ENHANCED A LITTLE BIT HE SAID STRATEGICALLY EACH ROUTE HAS TO BE LOOKED AT ON A CASEBYCASE BASIS BUT THEY HAVE A VALUABLE FRANCHISE HE SAID 9403290149 940329 INTERNATIONAL VOLVO BOARD SUPPORTS SHARE ISSUE IN STEP TOWARD BUYING BCP SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM SWEDISH AUTOMOTIVE AND INDUSTRIAL GROUP AB VOLVO SAID ITS BOARD HAS DECIDED TO CARRY THROUGH A NEW SHARE ISSUE ANNOUNCED LAST FALL AS A PREREQUISITE TO THE ACQUISITION OF SWEDEN'S BRANDED CONSUMER PRODUCTS AB THE SEVENBILLIONKRONA SHARE ISSUE 8897 MILLION WOULD ALLOW FOR THE SWAP OF ONE NEWLY ISSUED VOLVO SHARE FOR EVERY SIX BCP SHARES VOLVO'S DIRECTORS ALSO PROPOSED A 5FOR1 STOCK SPLIT BCP WAS CREATED IN NOVEMBER 1993 THROUGH THE SPLIT OF FORMER FOOD AND DRUG CONGLOMERATE PROCORDIA AB INTO TWO COMPANIES BIOTECHNOLOGY AND PHARMACEUTICAL GROUP PHARMACIA AB AND BCP ACTIVE IN FOOD BEVERAGE AND TOBACCO PRODUCTS A DECISION ON APPROVAL OF THE NEW SHARE ISSUE WILL COME AT VOLVO'S GENERAL ANNUAL MEETING NEXT MONTH SINCE THE SWAP OFFER FOR BCP SHARES WAS FIRST MADE IN OCTOBER THE PRICE OF VOLVO SHARES HAS RISEN MORE THAN 200 KRONOR A SHARE WITH VOLVO B CLOSING IN STOCKHOLM AT 630 KRONOR 80 YESTERDAY TO REFLECT THE JUMP IN VOLVO PRICES THE NEW SHARE ISSUE UNDERLYING THE BCP OFFER HAS BEEN BOOSTED TO SEVEN BILLION KRONOR OR 104 KRONOR A BCP SHARE FROM 47 BILLION KRONOR OR 71 KRONOR A BCP SHARE THE GROUP SAID BCP SHAREHOLDERS HAVE TWO OTHER OPTIONS UNDER THE TERMS OF THE OFFER THE GROUP SAID FOR EACH BCP SHARE TENDERED THEY CAN OPT TO RECEIVE A CASH PAYMENT OF 47 KRONOR OR 035 PHARMACIA SHARE HOWEVER LOCAL ANALYSTS NOTED THESE TWO OPTIONS AREN'T LIKELY TO FIND MANY TAKERS AS BCP SERIES A AND B SHARES ARE BOTH TRADING AT 103 KRONOR YESTERDAY WITH PHARMACIA A AT 119 KRONOR AND PHARMACIA B AT 120 KRONOR VOLVO CURRENTLY OWNS 737 OF BCP'S SHARES AS OF DEC 31 THESE SHARES WERE SHOWN IN VOLVO'S CONSOLIDATED ACCOUNTS AT 61 BILLION KRONOR THE GROUP SAID THE OFFER IS NOT AVAILABLE TO BCP SHAREHOLDERS IN THE US AND CANADA 9403290148 940329 ENTERPRISE RTC STANCE ON S&LS IRKS BLACK BANKERS CAPITOL HILL'S HOPES FOR SALES ARE SEEN AS IGNORED BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HEADS OF SMALL BLACKOWNED BANKS CHARGED THAT THE RESOLUTION TRUST CORP ISN'T CARRYING OUT A CONGRESSIONAL MANDATE TO HELP THEM BUY FAILED SAVINGS BANKS IN MINORITY NEIGHBORHOODS LAST YEAR CONGRESS DIRECTED THE RTC WHICH IS RESPONSIBLE FOR SELLING THE ASSETS OF FAILED SAVINGS AND LOAN INSTITUTIONS TO GRANT A PREFERENCE TO BIDS FROM MINORITYOWNED FINANCIAL INSTITUTIONS FOR SUCH PROPERTIES THE LAWMAKERS REASONED THAT THE MINORITY BANKERS ARE MORE LIKELY TO KEEP BANK BRANCHES OPEN IN THOSE NEIGHBORHOODS BUT MINORITY BANKERS SAY THAT INTERIM RULES ADOPTED BY THE RTC TO CARRY OUT THE LAW DON'T SUFFICIENTLY ENABLE THEM TO COMPETE WITH LARGE NONMINORITY FINANCIAL INSTITUTIONS FOR THE PROPERTIES UNDER THE RULES MINORITY BANKS SIMPLY WILL NOT BE ABLE TO OUTBID MAJORITY ACQUIRERS SAID EMMA CHAPPELL CHIEF EXECUTIVE OFFICER OF UNITED BANK OF PHILADELPHIA MINORITY BANKS WILL LOSE EVERY TIME THE ADVISORY PANEL'S CHAIRMAN PLANS TO PRESENT THE MINORITY BANKERS' CONCERNS TO THE OVERSIGHT BOARD NEXT MONTH AND HAS REQUESTED A MEETING WITH TREASURY SECRETARY LLOYD BENTSEN A MEMBER OF THE CORPORATION'S MAIN OVERSIGHT BOARD THE BANKERS WHO HAVE ASKED THE RTC TO EXTEND AN EARLIER MORATORIUM ON ACCEPTING BIDS FOR THE SAVINGS BANKS AT ISSUE SAID THEIR CONCERNS BECAME MORE URGENT YESTERDAY AMID REPORTS THAT THE RTC ACCEPTED BIDS LAST WEEK ON ONE INSTITUTION IN A MINORITY NEIGHBORHOOD AND PLANS TO OPEN BIDDING ON ANOTHER THIS WEEK SUCH ACTION SUGGESTS OBVIOUS DISDAIN FOR THE MINORITY BANKERS' POSITION A SPOKESMAN FOR THE BANKERS SAID AN RTC OFFICIAL SAID THE AGENCY IS COMPLYING WITH THE LETTER AND THE SPIRIT OF THE CURRENT LAW THE BANKERS SAID THEY NEED A PREFERENTIAL POLICY THAT WOULD LET THEM ACQUIRE A THRIFT LOCATED IN A PREDOMINANTLY MINORITY AREA IF THEY CAN MATCH THE BEST OFFER AFTER ALL THE BIDS ARE IN THEY ALSO WANT THE RTC TO REQUIRE THAT BOTH MINORITY AND NONMINORITY PURCHASERS OF FAILED THRIFTS IN MINORITY NEIGHBORHOODS CONTINUE TO OPERATE THERE FOR AT LEAST FOUR YEARS THE INTERIM REGULATIONS OFFER MORE LIMITED ASSISTANCE UNDER THOSE RULES IF A MINORITY BIDDER MAKES AN OFFER WITHIN 10 OF A NONMINORITY BIDDER'S BEST OFFER THE RTC WILL ALLOW THE TWO COMPANIES TO AGAIN SUBMIT THEIR BEST AND FINAL BIDS AND THEN CHOOSE THE HIGHER ONE IN ADDITION THE RTC SAID IT WILL LEND MINORITY BIDDERS AS MUCH AS TWOTHIRDS OF THE CAPITAL NECESSARY FOR A PURCHASE AN RTC SPOKESWOMAN SAID OFFICIALS WON'T COMMENT ON THE BANKERS' COMPLAINTS BECAUSE THE INTERIM RULES ARE SUBJECT TO REVISION AFTER A PUBLIC COMMENT PERIOD ENDS TODAY BUT SHE SAID THE AGENCY MUST FOLLOW THE BASIC DIRECTIVE OF SELLING ITS ASSETS AND INSTITUTIONS IN A WAY LEAST COSTLY TO TAXPAYERS IN THEIR TESTIMONY TO THE RTC ADVISORY PANEL THE BLACK BANKERS STRESSED A RECENT STUDY SHOWING THAT THE RTC HAS FAVORED BIG BANKS IN THE SALE OF CORE DEPOSITS FROM FAILED THRIFTS THE STUDY CONCLUDED THAT THOSE SALES WERE MORE COSTLY TO TAXPAYERS THAN MOST SALES TO SMALLER INSTITUTIONS THE STUDY BY THE SOUTHERN FINANCE PROJECT A CONSUMERORIENTED RESEARCH GROUP BASED IN CHARLOTTE NC SHOWS THAT 10 BIG FINANCIAL INSTITUTIONS BOUGHT MORE THAN HALF OF THE CORE DEPOSITS THE RTC SOLD FROM 1989 THROUGH 1993 THE SAME SURVEY SHOWED THAT NEARLY 25 OF CORE DEPOSITS SOLD DURING THE SAME PERIOD WENT TO BANKAMERICA CORP THE BLACK BANKERS CALLED THE RTC'S RECORD OF SALES TO MINORITY ACQUIRERS DESPICABLE MINORITIES HAVE BOUGHT ONLY 16 OF THE 680 INSTITUTIONS SOLD BY THE AGENCY SO FAR AND INDIVIDUAL BRANCHES OF ONLY TWO OTHER INSTITUTIONS THEY SAID THEIR INSTITUTIONS SHOULD BE ABLE TO EXPAND AS A RESULT OF THE THRIFT SALES JUST AS LARGER INSTITUTIONS DO WE HAVE SPECIAL TREATMENT FOR FARMERS FOR ISRAEL FOR CUBANS AND HAITIANS SAID LOUIS PREZEAU PRESIDENTELECT OF THE NATIONAL BANKERS ASSOCIATION THE TRADE GROUP FOR MINORITYOWNED BANKS AND PRESIDENT OF CITY NATIONAL BANK OF NEW JERSEY BUT EVERY TIME A MINORITY GETS PREFERENTIAL TREATMENT IT'S A BIG DEAL WHY CAN'T THE RTC JUST COMPLY WITH THE LAW MR PREZEAU MS CHAPPELL AND SEVERAL OTHER HEADS OF BLACKOWNED BANKS PRESENTED THEIR COMPLAINTS TO AN ADVISORY PANEL THAT IS PART OF THE RTC'S OVERSIGHT BOARD 9403290147 940329 INTERNATIONAL EU PANEL GIVES GREECE ULTIMATUM ON MACEDONIA ATHENS THE EUROPEAN UNION COMMISSION GAVE GREECE ONE WEEK TO SUSPEND ITS EMBARGO AGAINST THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA OR FACE ACTION BEFORE THE EUROPEAN COURT OF JUSTICE THE ULTIMATUM WAS DELIVERED BY HANS VAN DEN BROEK THE EU'S FOREIGN AFFAIRS COMMISSIONER IN TALKS WITH GREEK PRIME MINISTER ANDREAS PAPANDREOU AND FOREIGN MINISTER KAROLOS PAPOULIAS AFTER THE MEETING MR VAN DEN BROEK SAID THE COMMISSION COULD DECIDE TO REFER GREECE TO THE COURT AS EARLY AS NEXT WEEK UNDER EU RULES MEMBER STATES CAN'T DECIDE ON THEIR OWN TO CLOSE ONE OF THE UNION'S EXTERNAL BORDERS ALTHOUGH AN EXCEPTION CAN BE MADE IN CASES WHERE NATIONAL SECURITY IS THREATENED GREECE HAS CITED NATIONAL SECURITY AS A BASIS FOR ITS FEB 16 DECISION TO CLOSE ITS NORTHERN PORT OF SALONIKA TO TRADE WITH MACEDONIA ONLY FOOD AND MEDICINE WERE EXEMPTED FROM THE MOVE THE GREEK ACTION IS AIMED AT OBTAINING CONCESSIONS IN A DISPUTE WITH THE FORMER YUGOSLAV REPUBLIC OVER ITS NAME CONSTITUTION AND FLAG ATHENS ARGUES THAT USE OF THE NAME MACEDONIA IMPLIES TERRITORIAL AMBITIONS AGAINST THE NORTHERN GREEK PROVINCE OF MACEDONIA 9403290146 940329 BUSINESS BRIEF UAL FILING FOR BUYOUT OUTLINES MIX OF SECURITIES NAMES DIRECTOR NOMINEES CHICAGO UAL CORP SAID IT FILED WITH FEDERAL REGULATORS DOCUMENTS RELATED TO THE PROPOSED 5 BILLION EMPLOYEE BUYOUT OF THE COMPANY NAMING SOME DIRECTOR NOMINEES AND DETAILING THE MIX OF SECURITIES IN THE TRANSACTION THE PARENT OF UNITED AIRLINES SAID IT WILL NEXT FILE A PRELIMINARY PROXY STATEMENT AND PROSPECTUS WITH THE SECURITIES AND EXCHANGE COMMISSION THE MAJORITYSTOCK PURCHASE BY EMPLOYEES THEN GOES BEFORE SHAREHOLDERS FOR A VOTE ONCE THE TRANSACTION IS COMPLETED THE COMPANY WILL HAVE A 12MEMBER BOARD THE COMPANY SAID IT CHOSE JOSEPH V VITTORIA CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CARRENTAL CONCERN AVIS INC TO REPRESENT SALARIED AND UNION EMPLOYEES AND UAL CONFIRMED THAT TWO OF THE FOUR INDEPENDENT DIRECTORS ARE JOHN K VAN DE KAMP FORMER ATTORNEY GENERAL OF CALIFORNIA AND PAUL A VOLCKER FORMER CHAIRMAN OF THE FEDERAL RESERVE BOARD THEIR NAMES HAVE SURFACED RECENTLY AS BOARD CANDIDATES THE OTHER INDEPENDENT DIRECTORS ARE DUANE D FITZGERALD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BATH IRON WORKS CORP AND RICHARD D MCCORMICK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TELECOMMUNICATIONS CONCERN U S WEST INC UAL WILL RETAIN THREE OF ITS CURRENT DIRECTORS AS WELL THE BUYOUT TRANSACTION WHICH UNITED'S PILOTS AND MACHINISTS UNIONS HAVE VALUED AT 173 A SHARE WILL BE ACCOMPLISHED THROUGH A RECAPITALIZATION FOR EACH UAL SHARE HELD EXISTING SHAREHOLDERS WILL RECEIVE ONEHALF SHARE OF NEW COMMON STOCK AND A PACKAGE OF SECURITIES AND CASH VALUED AT 88 UAL'S MACHINISTS AND PILOTS UNIONS ALONG WITH ITS SALARIED EMPLOYEES WILL EXCHANGE MORE THAN FIVE YEARS' WORTH OF WAGE AND WORKRULE CONCESSIONS FOR AT LEAST A 53 STAKE IN UAL IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE UAL SHARES CLOSED AT 13325 UP 175 9403290145 940329 INTERNATIONAL WORLD WIRE COMPILED BY CATHERINE BOLGAR TURKISH PRIME MINISTER TANSU CILLER'S PARTY APPEARED HEADED FOR AN UNEXPECTED VICTORY IN LOCAL ELECTIONS ENSURING THE SURVIVAL OF HER EMBATTLED COALITION GOVERNMENT BUT THE RESULTS WERE OVERSHADOWED BY THE FACT THAT THE MILITANT ISLAMIC REFAH PARTY APPARENTLY REGISTERED TWICE AS MANY SUPPORTERS AS IT DID IN 1989 WITH 75 OF THE BALLOTS IN MS CILLER'S TRUE PATH PARTY LED WITH 23 OF THE VOTE DESPITE WIDESPREAD CRITICISM OF HER ECONOMIC POLICIES AND HER FAILURE TO END THE 10YEAROLD WAR AGAINST KURDISH REBELS IN SOUTHEASTERN TURKEY REFAH'S STRENGTH SIGNALS WIDESPREAD DISILLUSIONMENT WITH TURKEY'S MAINSTREAM POLITICAL PARTIES WHICH ARE PERCEIVED AS BEING RIFE WITH CORRUPTION THE PARTY HAS PROPOSED PULLING TURKEY OUT OF THE NORTH ATLANTIC TREATY ORGANIZATION AND FORMING AN ISLAMIC COMMON MARKET TURKEY'S EXTREME NATIONALIST NATIONAL MOVEMENT PARTY ALSO DOUBLED ITS SUPPORT TOGETHER REFAH AND THE NATIONAL MOVEMENT CAPTURED 25 OF ALL VOTES CAST ISRAELI GERMAN AND JORDANIAN FIRMS COULD DIG A NEW JORDAN RIVER UNDER AN ISRAELI PLAN TO MAKE A PARALLEL CHANNEL TO THE BIBLICAL RIVER TO SUPPLY DESALINATED MEDITERRANEAN SEA WATER TO BOTH ISRAEL AND JORDAN THE DAILY YEDIOTH AHRONOTH NEWSPAPER REPORTED THE EXISTING RIVER IS A WINDING STREAM THAT FORMS MOST OF JORDAN'S BORDER WITH ISRAEL AND THE OCCUPIED WEST BANK TERRITORY THE 3 BILLION PROJECT WOULD TAKE 10 YEARS TO COMPLETE USING LAND ON BOTH SIDES OF THE PRESENT BORDER VIETNAM'S STATE OIL COMPANY SAYS IT IS CLOSE TO AWARDING A CONTRACT FOR TWO NATURALGAS PIPELINES AND RELATED PROCESSING FACILITIES TO A CONSORTIUM OF BRITISH JAPANESE AND CANADIAN COMPANIES NEITHER THE GOVERNMENT NOR THE CONSORTIUM WOULD ESTIMATE THE VALUE OF THE PROJECT WHICH INCLUDES AN OFFSHORE GASCOMPRESSION STATION AND A LIQUEFIED PETROLEUM GAS PRODUCTION PLANT MEANWHILE THE STATE OIL COMPANY SAID IT IS SEEKING A BANK LOAN OF AS MUCH AS 1 BILLION TO FINANCE OIL AND NATURALGAS DEVELOPMENT AND THE CONSTRUCTION OF ITS FIRST OIL REFINERY THE EUROPEAN UNION AND THE US AGREED TO STOP USING EACH OTHER'S BRAND NAMES FOR DISTILLED SPIRITS THE EU AGREED THAT BOURBON AND TENNESSEE WHISKEY ARE DISTINCTIVE US PRODUCTS AND PROMISED TO ALLOW ONLY US DISTILLERS TO USE EITHER NAME IN THE 12NATION TRADE BLOC THE US AGREED TO BAN NONEU VERSIONS OF SCOTCH WHISKY IRISH WHISKY COGNAC ARMAGNAC CALVADOS AND BRANDY DE JEREZ RUSSIA AND KAZAKHSTAN REACHED A NUMBER OF ECONOMIC POLITICAL AND MILITARY AGREEMENTS INCLUDING A 20YEAR LEASE OF THE BAIKONUR SPACE LAUNCH SITE IN KAZAKHSTAN THEY ALSO DECIDED MOSCOW WOULD CONTROL KAZAKHSTAN'S NUCLEAR ARSENAL UNTIL IT IS DISMANTLED THE TWO FORMER SOVIET REPUBLICS HAD BEEN ARGUING ABOUT CONDITIONS FOR USING BAIKONUR THE LAUNCH SITE FOR ALL SOVIET MANNED SPACE FLIGHTS SINCE THE SOVIET UNION BROKE UP IN 1991 RUSSIA AGREED TO PAY 115 MILLION ANNUALLY FOR USE OF THE COSMODROME WITH AN OPTION TO EXTEND THE LEASE FOR ANOTHER 10 YEARS JAPAN'S POPULATION GROWTH HAS SLOWED TO AN ANNUAL RATE OF 025 THE LOWEST SINCE WORLD WAR II THAT RATE BROUGHT JAPAN'S POPULATION TO AN ESTIMATED 1248 MILLION AS OF OCT 1 THE GOVERNMENT SAID THE PREVIOUS POSTWAR LOW WAS 033 IN 1992 THE DECLINE IN THE BIRTH RATE HAS BEEN ATTRIBUTED TO CRAMPED HOUSING HIGH LAND PRICES LATE MARRIAGE AND THE HIGH COST OF EDUCATION JAPANESE AGE 65 AND OLDER NOW ACCOUNT FOR A RECORD 135 OF THE POPULATION UP FROM 131 IN 1992 CHILDREN UNDER 15 ACCOUNTED FOR A RECORD LOW 167 DOWN FROM 172 IN 1992 CHINA HAS ISSUED RULES FOR THE NEXT STEP IN ITS AMBITIOUS CURRENCY REFORM CREATION OF A COMPUTERLINKED INTERBANK CURRENCY MARKET THE REGULATIONS DON'T MENTION ANY ROLE FOR FOREIGN BANKS WHICH PREVIOUSLY HAD BEEN TOLD THEY MIGHT BE ABLE TO APPLY TO TRADE ON THE NEW MARKET FOREIGN COMPANIES ARE TO CONTINUE TO TRADE AT THE EXISTING CURRENCY SWAP MARKETS WHICH INDICATES THEY WILL FUNCTION APART FROM THE NEW INTERBANK OPERATION CHINESE FIRMS ON THE OTHER HAND WILL BE BARRED FROM THE SWAP MARKETS DRAINING THE FIRMS OF MOST OF THEIR LIQUIDITY THE INTERBANK CURRENCY MARKET IS TO BEGIN OPERATIONS ON FRIDAY WHEN FIRST ANNOUNCED IN DECEMBER THE MARKET WAS DESCRIBED AS A WAY TO UNIFY TRADING ON THE COUNTRY'S MORE THAN 100 SWAP MARKETS SO THAT A SINGLE EXCHANGE RATE COULD BE MAINTAINED EACH SWAP MARKET CURRENTLY DERIVES ITS OWN EXCHANGE RATE BASED ON SUPPLY AND DEMAND AND WIDE RATE DISPARITIES SOMETIMES DEVELOP FOREIGN BUSINESS PEOPLE FEAR THAT THE NEW SYSTEM WILL MAKE IT HARDER TO GET THE HARD CURRENCIES THEY NEED TO IMPORT EQUIPMENT OR REPATRIATE PROFITS NEARLY 10 OF LAOS'S 44 MILLION PEOPLE FACE CRITICAL FOOD SHORTAGES BECAUSE OF POOR RICE HARVESTS TWO UNITED NATIONS AGENCIES SAID RECOMMENDING THAT 43000 TONS OF RICE BE SUPPLIED UNTIL THE NEXT HARVEST A BROKERAGE FIRM IN CHINA PAID A 5750 SETTLEMENT TO THE WIDOW OF A STOCK INVESTOR WHO COMMITTED SUICIDE BECAUSE OF HIS TRADING LOSSES THE WIDOW SUED THE BROKERAGE FIRM FOR ALLEGEDLY LETTING HER HUSBAND TRADE ON MARGIN 9403290144 940329 MARKETING & MEDIA MARKETSCAN WAR ON SMOKING IS MUSIC TO GUM MAKERS BY YUMIKO ONO ONCE IN A WHILE JOANNE CARLE GETS THROUGH THE DAY WITHOUT A SINGLE CIGARETTE BUT NEVER WITHOUT A STICK OF GUM SO MANY RESTAURANTS AND PUBLIC AREAS BAN SMOKING THAT THE 39YEAROLD NEW YORKER FINDS HERSELF CHEWING MORE AND MORE GUM THE MORE YOU HAVE IT THE MORE YOU WANT IT SAYS MS CARLE AN EXECUTIVE ASSISTANT FOR A PUBLICRELATIONS FIRM BEFORE IT WAS JUST A BREATH FRESHENER NOW IT'S A MUST PEOPLE LIKE MS CARLE ARE HELPING TO DRIVE UP SALES OF CHEWING GUM WHICH IS NO LONGER MERELY A FLAVORFUL TREAT INCREASINGLY GUM IS BEING MARKETED AS AN ALTERNATIVE TO SMOKING AND BRUSHING TEETH CHEWING GUM SALES IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS ROSE A SURPRISINGLY STRONG 61 IN THE 12 WEEKS ENDED DEC 5 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE CHEWINGGUM MAKERS SAY THEY'RE OPTIMISTIC THAT THE HEALTHY GROWTH WILL CONTINUE PEOPLE WHO ARE CHEWING REGULARLY ARE CHEWING MORE THAN EVER SAYS BECKY KOTRBA SENIOR MANAGER OF MARKET RESEARCH FOR WARNERLAMBERT CO'S AMERICAN CHICLE GROUP WHICH MARKETS THE DENTYNE AND TRIDENT BRANDS THAT'S A CHANGE SHE SAYS IN A CATEGORY THAT HAS OTHERWISE BEEN STAGNANT TEENAGERS HAVE TRADITIONALLY BEEN THE MOST AVID CONSUMERS OF GUM BUT THESE DAYS IT'S THE BABY BOOMERS WHO ARE REALLY CHEWING AWAY A WARNERLAMBERT SURVEY CONDUCTED AMONG GUM CHEWERS THOSE WHO HAVE CHEWED AT LEAST A STICK OF GUM IN THE PAST MONTH SHOWS THAT CONSUMERS BETWEEN 35 AND 49 CHEWED AN AVERAGE OF 156 STICKS OF GUM A WEEK IN 1993 NEARLY 30 MORE THAN A YEAR AGO THE BIGGEST CONSUMERS OF CHEWING GUM WHO ARE BETWEEN 12 AND 17 CHEWED A WEEKLY AVERAGE OF 216 PIECES IN 1993 12 MORE THAN A YEAR AGO CHEWING GUM HAS LONG BEEN VIEWED AS AN ALTERNATIVE TO SMOKING IT'S HARDLY SURPRISING THEREFORE THAT GUM IS MOST POPULAR ACCORDING TO INFOSCAN IN SALT LAKE CITY AN AREA DOMINATED BY MORMONS WHO SHUN SMOKING AND DRINKING SALT LAKE CITY IS FOLLOWED BY GRAND RAPIDS MICH AND DENVER AREAS WHERE GUM IS LEAST POPULAR CLEVELAND PHILADELPHIA AND BOSTON MARKETERS ARE CONCENTRATING MORE THAN EVER ON PITCHING GUM AS AN ALTERNATIVE WM WRIGLEY JR CO WHICH CONTROLS NEARLY HALF THE US CHEWING GUM MARKET AGGRESSIVELY ADVERTISES ITS BRANDS AS A PRODUCT FOR THOSE TIMES WHEN SMOKING HAS TO BE TABLED WHETHER PEOPLE ARE SMOKING OR GIVING UP SMOKING OR NOT GIVING UP SMOKING THERE ARE MORE AND MORE SITUATIONS WHERE YOU'RE PROHIBITED FROM SMOKING SAYS CHRIS PERILLE A COMPANY SPOKESMAN MEANWHILE WARNERLAMBERT WRIGLEY'S MAIN COMPETITOR ADVERTISES GUM AS A WAY TO REMOVE FOOD RESIDUE FROM ONE'S MOUTH TRIDENT SUGARLESS GUM ACTUALLY HELPS FIGHT CAVITIES WHEN YOU CHEW IT AFTER MEALS SAYS A RECENT TELEVISION COMMERCIALPROVIDED SAYS A DISCLAIMER IT'S AFTER MEALS CONTAINING STARCHES AND SUGARS ENCOURAGED BY THE STRONG GUM MARKET LIFESAVERS CO WHICH MARKETS CAREFREE GUM SAYS IT'S GEARING UP TO INTRODUCE A SERIES OF NEW ENTRIES THE COMPANY HAS SEEN DOLLAR SALES DROP AFTER HEAVILY DISCOUNTING CAREFREE SUGARLESS GUMS BUT AFTER ITS JANUARY ROLLOUT OF STICKFREE A SUGARLESS GUM THAT PROMISES NOT TO STICK TO MOST DENTAL WORK THE COMPANY SAYS IT HAS OTHER PRODUCTS ON THE WAY THIS YEAR YOU'RE GOING TO FIND A VERY HIGH LEVEL OF ACTIVITY SAYS JET HOLLANDER CATEGORY DIRECTOR OF GUM AND BREATHFRESHENING PRODUCTS FOR LIFESAVERS A UNIT OF RJR NABISCO HOLDINGS CORP OF COURSE CHILDREN AND TEENS REMAIN A HUGE MARKET AND NEW NOVELTY GUMS ARE CONTRIBUTING GREATLY TO THE TOTAL GUM MARKET ANALYSTS SAY WARNERLAMBERT'S NEW CINNABURST GUM SPRINKLED WITH FLAVOR CRYSTALS WOOS TEENAGERS BY DECLARING IT MAY NOT BE SUITABLE FOR ADULTS AND FINLANDBASED HUHTAMAKI OY'S LEAF INC TESTS THE TIMID WITH NEW BUSTED A MULTICOLORED PACK OF 10 BUBBLEGUM BALLS THAT INCLUDES THREE FIERYHOT SURPRISES 9403290143 940329 AUTOS HOW TO DRIVE AN OFFROAD CAR OFF THE ROAD BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL EASTNOR CASTLE ENGLAND I TAKE MY FOOT OFF THE BRAKES AND START DOWN GEARBOX HILL A STEEP MUDDY TRACK THAT LOOKS MORE SUITABLE FOR MOUNTAIN GOATS THAN MOTOR VEHICLES THE LAND ROVER RUMBLES EASILY DOWN THE BUMPY RUTS LIKE A TRAIN ON RAILS SUDDENLY THE HUGE FOURWHEELDRIVE VEHICLE BEGINS VEERING OFF THE TRACK AS MY INSTRUCTOR YELLS STEER STRAIGHT DESPITE MY BEST EFFORTS TO DO EXACTLY THAT THE LAND ROVER CONTINUES TO DRIFT SIDEWAYS ON THE STEEP HILLSIDE UNTIL IT VIOLENTLY CLOUTS A TREE WHICH SOMEHOW BOUNCES THE VEHICLE BACK ON THE TRACK WELL DONE THE INSTRUCTOR PROCLAIMS WELL DONE THIS IS DRIVING SCHOOL THE LAND ROVER WAY HERE IN THE RUGGED HILLS SURROUNDING EASTNOR CASTLE ABOUT 100 MILES WEST OF LONDON LAND ROVER TEACHES PEOPLE THE FINE POINTS OF DRIVING THEIR OFFROAD VEHICLES OFF THE ROAD ALTHOUGH SPORTUTILITY VEHICLES LIKE THE LAND ROVER ARE ONE OF THE HOTTEST SEGMENTS OF THE GLOBAL AUTO MARKET MOST OWNERS RARELY DRIVE THEM ANYWHERE BUT ON PAVED ROADS TAKE MARTIN AND DIANA WHEELER OF BOULDRE ENGLAND TWO FELLOW CLASSMATES THEY HAVE OWNED A LAND ROVER DEFENDER 110 SINCE 1991 USING IT FOR TOWING TRAILERS THAT CARRY THE GOATS THEY RAISE HOW OFTEN HAVE THEY TAKEN THEIR LAND ROVER OFF ROAD JUST ONCE CONFIDES MRS WHEELER WE GOT STUCK NONE OF THIS DAMPENS THE SPIRITS OF LAND ROVER WHICH FOR YEARS HAS BEEN TEACHING DRIVERS AT EASTNOR HOW TO CLIMB AND DESCEND HILLS THAT LOOK LIKE SKI SLOPES HOW TO CROSS WATER USING THE BOW WAVE AND HOW TO USE THE VEHICLE'S POWERFUL WINCH TO PULL IT OUT OF BINDS LAND ROVER IS PART OF BRITAIN'S ROVER GROUP WHICH WAS ACQUIRED RECENTLY BY BAYERISCHE MOTOREN WERKE AG IN ADDITION TO EASTNOR LAND ROVER ALSO RUNS A ONEDAY DRIVING SCHOOL NEAR ITS FACTORY IN SOLIHULL ENGLAND STUDENTS ARE TAUGHT HOW TO DESCEND A CLIFFLIKE MOUND OF DIRT HOW TO CLIMB STAIRS AND EVEN HOW TO SMOOTHLY CROSS RAILROAD TIES THE STRATEGY IS TO DRIVE SO FAST THE VEHICLE SKIMS THE TOP OF THE TIES IN THE US LAND ROVER HOLDS A SERIES OF WEEKLONG DRIVING SCHOOLS EACH SUMMER PARTICIPANTS PAY 4500 TO LEARN TO CLIMB ROCK FACES WITH UP TO 45DEGREE GRADIENTS OR THE PROPER ANGLE 45 DEGREES TO CROSS A DITCH TO KEEP THREE OF THE FOUR WHEELS ON THE GROUND LAND ROVER SOLD ONLY 4907 VEHICLES IN THE US LAST YEAR BUT THE QUIRKY BRITISH VEHICLE HAS NEVERTHELESS BECOME A STATUS SYMBOL FOR THE RICH AND FAMOUS MICHAEL JACKSON OWNS ONE SO DO DUSTIN HOFFMAN AND JACK NICHOLSON AMERICANS RARELY BUY THE RUGGED DEFENDER THAT'S POPULAR WITH FARMERS AND UTILITY COMPANIES IN ENGLAND INSTEAD THEY BUY THE RANGE ROVER WHICH STARTS AT 47000 AND IS LOADED WITH LEATHER SEATS COMPACTDISK PLAYERS AND EVEN SPECIAL AIR SUSPENSION THAT ACTUALLY LOWERS THE VEHICLE SO IT'S EASIER TO CLIMB IN AND OUT NEXT MONTH LAND ROVER INTRODUCES A THIRD VEHICLE IN THE US THE DISCOVERY WHICH WILL COST LESS THAN 30000 AND IS DESIGNED TO COMPETE DIRECTLY WITH THE FORD EXPLORER AND JEEP GRAND CHEROKEE THE LAND ROVER WAS CONCEIVED AFTER WORLD WAR II BY MAURICE WILKS OF THE ROVER CAR CO WHO THOUGHT HE COULD IMPROVE ON THE AMERICAN ARMY JEEP MR WILKS DEVISED A RUGGED VEHICLE WITH A STEEL CHASSIS AND ALUMINUM BODY PANELS THAT IN MODIFIED FORM IS STILL SOLD TODAY AS THE DEFENDER FOR MANY YEARS MORE THAN 80 OF LAND ROVERS WERE SOLD TO THIRD WORLD COUNTRIES WITH BAD ROADS AS MANY OF THESE COUNTRIES PLUNGED INTO POLITICAL AND ECONOMIC CHAOS IN THE 1970S LAND ROVER BEGAN TRYING TO SELL THE MORE LUXURIOUS RANGE ROVER TO AFFLUENT BUYERS ON THE FIRST MORNING OF CLASS THE 11 PEOPLE TAKING THE COURSE CLIMB ABOARD A CONVOY OF DISCOVERYS AND RANGE ROVERS AND HEAD OFF INTO THE WOODS SURROUNDING EASTNOR EACH VEHICLE INCLUDES ONE PROFESSIONAL LAND ROVER INSTRUCTOR SUCH AS PAUL LLOYD WHO RECENTLY SPENT TWO WEEKS IN SIBERIA TEACHING LOCAL POLICE HOW TO DRIVE THE 70 LAND ROVERS THEY HAD BOUGHT THE GROUP STARTS OFF SLOWLY DRIVERS ARE TAUGHT THE BASICS OF HOW TO DRIVE AN OFFROAD VEHICLE ON A SLIPPERY SURFACE THE BRAKES ARE LITTLE USE IN MUD SINCE THEY JUST PUT THE VEHICLE INTO A SLIDE INSTEAD THE CLASS IS TAUGHT TO DESCEND HILLS IN THE LOWEST GEAR USING ENGINE COMPRESSION FOR BRAKING THE BASIC PRINCIPLE IS TO POWER UP HILLS IN SECOND OR THIRD GEAR AND TO CREEP DOWN THEM IN FIRST GEAR AS WE PICK UP CONFIDENCE WE ARE SOON NAVIGATING OUR VEHICLES UP AND DOWN SEEMINGLY IMPASSABLE LOGGING ROADS THAT WOULD PASS FOR STREAMS IN SOME PLACES THE IMPECCABLY POLITE INSTRUCTORS DEMONSTRATE HOW TO CREATE A BOW WAVE TO KEEP THE ENGINE COMPARTMENT DRY WHEN CROSSING WATER THE KEY IS HITTING WATER AT A GOOD EVEN PACE AND MAINTAINING MOMENTUM THE DIFFICULT PART ABOUT EASTNOR ISN'T THE STEEP HILLS BUT THE SLIPPERY CLAY SOIL THAT CAN SUDDENLY TURN A LAND ROVER INTO A TWOTON TOBOGGAN IF YOU DON'T KEEP YOUR STEERING WHEEL STRAIGHT THE VEHICLE CAN SUDDENLY POP OUT THE RUTS AND SPRING OFF TO ONE SIDE THAT'S WHAT HAPPENS TO ME ON GEARBOX HILL CREATING MY NEAR CATASTROPHE AFTERWARD MY INSTRUCTOR GETS OUT AND INSPECTS THE VEHICLE WHICH APPEARS UNSCATHED THE SAME CAN'T BE SAID FOR ONE OF MY CLASSMATES IN THE VEHICLE WHO HAS A BRUISED CALF NO AMOUNT OF MONEY BUYS A SMOOTH RIDE WHEN AN OFFROAD VEHICLE GOES OFF ROAD BY EARLY AFTERNOON THE GROUP HAS HAD ENOUGH OFFROADING OFF IT GOES TO EASTNOR CASTLE FOR A GARGANTUAN LUNCH HOSTED BY MAJ BENJAMIN HERVEYBATHURST A RUDDY RETIRED WAR HERO WITH A BIG WHITE MOUSTACHE WHO POURS WINE FOR THE STUDENTS AFTER A TOUR OF THE CASTLE IT'S BACK TO THE HOTEL FOR COFFEE DRINKS AND ANOTHER HUGE MEAL BY THE END OF THE DAY LAND ROVER'S FORMULA FOR THIS CLASS IS CLEAR THREE HOURS OF DRIVING AND 10 HOURS OF EATING DRINKING OR CHATTING IAN MULINGANI LAND ROVER'S PROMOTIONS MANAGER SAYS LAND ROVER WILL CONDUCT MORE RIGOROUS DRIVING SESSIONS FOR THOSE WHO WANT IT BUT MOST DRIVERS DON'T WANT THAT MUCH WORK THE CUSTOMERS WILL BOTTOM OUT BEFORE THE VEHICLE DOES HE SAYS AT THE END OF THE WEEKEND THE STUDENTS RETURN TO THEIR VEHICLES AND THEIR REALLIFE EXISTENCES ONE IS A FACTORY OWNER ANOTHER IS A PHYSICS PROFESSOR A THIRD A COMPUTER ANALYST ANNE HAYWARD AN OFFICE MANAGER FROM THORNDON ENGLAND SAYS SHE WILL FEEL A LOT MORE CONFIDENT DRIVING HER NEW DEFENDER AROUND BECAUSE OF HER OFFROAD EXPERIENCE BUT AFTER SPENDING TWO DAYS AT EASTNOR SHE SAYS THERE'S NO WAY SHE WOULD TAKE HER DEFENDER OFF ROAD AND GET IT BANGED UP AND DIRTY IT SEEMS A SHAME TO PUT A NEW ONE THROUGH THAT SHE SAYS 9403290142 940329 TEJAS STAKE SOLD BY BHP UNIT HOUSTON TEJAS GAS CORP SAID A SECONDARY OFFERING OF 499615 COMMON SHARES OWNED BY BHP HOLDINGS OPERATIONS INC WAS PRICED AT 51125 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO BHP SOLD ALL OF ITS 48 STAKE CLOSING IS EXPECTED BY APRIL 5 TEJAS IS AN INTRASTATE GATHERER TRANSPORTER AND MARKETER OF NATURAL GAS 9403290141 940329 CORPORATE FOCUS MERVYN'S EFFORTS TO REVAMP RESULT IN DISAPPOINTMENT RETAILER'S BIG MISTAKES AND CALIFORNIA'S ECONOMY HAMPER TURNAROUND BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL HAYWARD CALIF MERVYN'S HAS DISCOVERED THAT THE ONLY THING WORSE THAN BEING A GIANT RETAILER DURING THIS STATE'S PROTRACTED RECESSION IS BEING A RETAILER THAT MADE GIANT MISTAKES DURING THE DOWNTURN IT'S A DRAG IT'S NO FUN SAYS MERVYN'S CHAIRMAN JOSEPH C VESCE OF THE POOR PERFORMANCE OF THE 276STORE CHAIN THE DAYTON HUDSON CORP UNIT DERIVES ABOUT HALF OF ITS 444 BILLION ANNUAL SALES FROM ITS 125 CALIFORNIA STORES AND HAS HURT THE PARENT COMPANY'S OVERALL PERFORMANCE AT THE HEART OF MERVYN'S TROUBLES ARE A NUMBER OF MARKETING AND MERCHANDISING MISCUES LIKE DROPPING WOMEN'S DRESSES THAT YIELDED SALES RESULTS MORE TEPID EVEN THAN CALIFORNIA'S FALTERING ECONOMY TWO MAJOR EXECUTIVESUITE CHANGES IN TWO YEARS ALSO HAVE TAKEN A TOLL WHILE FAILING TO JUMPSTART SALES INDEED MERVYN'S FACES BIG HURDLES IN ITS QUEST FOR BETTER RESULTS IT HAS REVAMPED ITS MERCHANDISE SELECTION AND ITS PRICING POLICY IN AN EFFORT TO DISCONTINUE ITS PRACTICE OF SHARPLY CUTTING PRICES TO SELL SLOW MOVING GOODS STILL SOME INDUSTRY OBSERVERS ARE SKEPTICAL THAT MERVYN'S CAN PULL OFF A TURNAROUND THIS YEAR I'M NOT OPTIMISTIC SAYS KAREN SACK STANDARD & POOR'S CORP RETAIL ANALYST THERE'S A LOT OF COMPETITION OUT THERE LAST YEAR MERVYN'S SALES FELL 2 AND ITS OPERATING PROFIT SLID 37 TO 179 MILLION THOSE DECLINES REDUCED MERVYN'S CONTRIBUTION TO ITS PARENT'S 1993 RESULTS TO 23 OF REVENUE FROM 25 THE PREVIOUS YEAR AND TO 16 OF OPERATING PROFIT FROM 26 MERVYN'S WAS OUR MAJOR DISAPPOINTMENT IN 1993 THE FOURTHLARGEST US RETAILER NOTED IN ITS YEAREND EARNINGS REPORT THINGS HAVEN'T IMPROVED SO FAR IN 1994 SALES IN MERVYN'S STORES OPEN AT LEAST A YEAR DECLINED 8 IN FEBRUARY FOLLOWING A 5 DECLINE FOR ALL OF LAST YEAR WE ARE RUNNING A YEAR BEHIND WHERE WE THOUGHT WE WOULD BE IN GETTING MERVYN'S GOING AND THAT IS DISAPPOINTING SAYS DAYTON HUDSON CHAIRMAN KENNETH A MACKE CONSIDERING CALIFORNIA'S TROUBLED ECONOMY MERVYN'S DECLINE IS EVEN MORE FOREBODING BECAUSE SUCH DIFFICULT PERIODS SHOULD SPARK PURCHASES OF THE MODERATELY PRICED APPAREL AND HOME FURNISHINGS THAT MERVYN'S OFFERS MERVYN'S DIFFICULTIES HAVE KEPT THE PARENT COMPANY'S STOCK PRICE HOVERING IN THE MID70 RANGE NOTWITHSTANDING STRONG PERFORMANCES OVER THE PAST SIX MONTHS FROM ITS TARGET DISCOUNT STORES AND ITS DEPARTMENTSTORE DIVISION IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY DAYTON HUDSON FELL 75 CENTS TO CLOSE AT 7350 A SHARE MR MACKE WHO ALSO OVERSEES THE COMPANY'S 553 TARGET STORES AND 63 DEPARTMENT STORES OPERATING AS DAYTON'S HUDSON'S AND MARSHALL FIELDS IS SPENDING MOST OF HIS TIME WORKING ON CORRECTING MERVYN'S PROBLEMS HE IS ON THE PHONE WITH MR VESCE SEVERAL TIMES A DAY AND TRAVELS FROM DAYTON HUDSON'S MINNEAPOLIS HEADQUARTERS TO VISIT HAYWARDBASED MERVYN'S NEARLY EVERY WEEK RETAILER MERVIN MORRIS STARTED THE CHAIN BACK IN 1949 WITH THE OBJECTIVE OF MIRRORING JC PENNEY CO STORES EXCEPT FOR STOCKING NATIONAL BRANDS AND OFFERING CREDIT TO CUSTOMERS AT THE TIME PENNEY'S OFFERED PRIMARILY PRIVATELABEL GOODS AND CUSTOMERS HAD TO PAY IN CASH SAYS ROBERT KAHN A FORMER MERVYN'S DIRECTOR AND CONSULTANT MERVYN'S WHICH ALSO STUMBLED DURING THE 1980S STILL VIEWS ITS TYPICAL 70000SQUARE FOOT STORES AS SMALLER VERSIONS OF JC PENNEY AND SEARS ROEBUCK & CO STORES WITHOUT THE HARDWARE AND APPLIANCE DEPARTMENTS AND IT ISN'T LOST ON DAYTON HUDSON EXECUTIVES THAT SEARS AND PENNEY HAVE MADE SALES STRIDES IN THE MODERATEPRICEDGOODS AREAS THAT MERVYN'S TARGETS INDEED MERVYN'S CURRENT RESTRUCTURING HAS BORROWED FROM SEARS'S TURNAROUND STRATEGY LIKE SEARS DAYTON HUDSON HAS HIRED SEVERAL NEW EXECUTIVES FOR KEY POSTS FROM OUTSIDE THE COMPANY AND IT HAS INJECTED INTO MERVYN'S SOME HIGHLY REGARDED EXECUTIVES FROM ITS GROWING TARGET DISCOUNT STORES UNIT MERVYN'S HAS HIRED OR CREATED NEW POSITIONS FOR FIVE OF ITS TOP NINE EXECUTIVES OVER THE LAST NINE MONTHS THE NEW EXECUTIVES INCLUDE PRESIDENT PAUL SAUSER WHO HAD BEEN A TARGET SENIOR VICE PRESIDENT AND THREE SENIOR VICE PRESIDENTS PLACED AT THE TOP OF MERVYN'S WOMEN'S MEN'S AND MARKETING DEPARTMENTS THEIR RECOVERY PLAN INCLUDES A NEW PRICING STRATEGY SHRINKING INVENTORY SPRUCING UP THEIR STORES AND POLISHING MERVYN'S IMAGE AMONG CONSUMERS THE KEY ELEMENT INVOLVES A RETURN OF WOMEN'S CAREER APPAREL AND DRESSES WHICH MERVYN'S DROPPED IN 1991 WITH THAT MOVE WE LOST TOUCH WITH OUR CORE CUSTOMER SAYS MR VESCE THAT CUSTOMER IS A 29YEAROLD TO 45YEAROLD WOMAN WITH A MEDIAN HOUSEHOLD INCOME OF 40000 MERVYN'S OFFICIALS DISCONTINUED THE WOMEN'S APPAREL LINES SO THEY COULD USE THE ADDITIONAL FLOOR SPACE TO EMPHASIZE CASUAL AND BASIC APPAREL A MOVE TO DUPLICATE GAP INC'S SUCCESS IN SELLING BASICS MERVYN'S NEW PRICING PLAN REPLACES ONE THAT CREATED HUGE PRICE DIFFERENTIALS ON MANY ITEMS WHEN THEY WERE SALEPRICED ONE WEEK OF EACH MONTH MR SAUSER OFFERS THE EXAMPLE OF A COTTON BLANKET WHOSE REGULAR PRICE WAS 35 BUT WHICH CARRIED A 1750 TAG ONE WEEK OF EACH MONTH CONSEQUENTLY VIRTUALLY ALL PURCHASES OF THE BLANKET OCCURED WHEN IT WAS ON SALE UNDER THE NEW PRICING STRATEGY THE BLANKET'S PROMOTIONAL PRICE IS 1799 AND 25 WHEN IT ISN'T ON SALE NOW MERVYN'S SELLS ABOUT HALF OF THE BLANKETS AT THE HIGHER PRICE MERVYN'S CLEARED OUT SOME 650 MILLION OF SLOWMOVING MERCHANDISE REDUCING STOCK BY 30 AND GIVING THE STORES A LESSCLUTTERED LOOK TO ACCOMPANY THAT LOOK MERVYN'S IS PREPARING A NEW ADVERTISING CAMPAIGN SET TO DEBUT THIS YEAR BACKED BY AN 18 INCREASE IN ITS AD BUDGET EVEN WITH ITS MAKEOVER MANEUVERS MERVYN'S HAS A WAY TO GO TO CATCH UP TO ARCHCOMPETITOR PENNEY A COMPARISON OF A MERVYN'S AND A PENNEY STORE THAT ARE NEIGHBORS IN THE SOUTH SHORE CENTER MALL IN ALAMEDA CALIF ILLUSTRATES THAT THE PENNEY STORE HAS MORE THAN THREE TIMES THE SELECTION OF WOMEN'S DRESSES INCLUDING THOSE IN PETITE AND LARGERSIZE SECTIONS MERVYN'S GOT ITS FIRST ORDER OF PETITESIZE DRESSES IN THE LAST WEEK OF FEBRUARY SO FAR MERVYN'S OFFICIALS ARE SATISFIED WITH THE CHANGES THEY'VE MADE EVEN IF CONSUMERS HAVEN'T YET RESPONDED WE FEEL WE'RE WELL ON OUR WAY SAYS MR VESCE HE CITES THE 100 MILLION IN SALES THAT THE RETURN OF THE WOMEN'S DRESS BUSINESS BROUGHT IN LAST YEAR THAT WAS THE BEST YEAR EVER FOR MERVYN'S IN THAT LINE OF BUSINESS DAYTON HUDSON OFFICIALS WON'T SAY HOW MUCH LONGER THEY WILL ALLOW MERVYN'S TO UNDERPERFORM BUT SAYS CHAIRMAN MACKE THE TIME FUSE IS NOT AN ETERNALLY BURNING CANDLE WE WOULD LOOK TO TURN IT AROUND THIS YEAR MERVYN'S WILL ADD ONLY EIGHT STORES THIS YEAR DOWN FROM 12 LAST YEAR AND 22 IN 1992 THE LAST YEAR MERVYN'S ACHIEVED A SALES GAIN 9403290140 940329 CREDIT MARKETS JUNK BOND ISSUERS MAY BE FACING A TOUGH WEEK AS INVESTORS ARE HOLDING OUT FOR HIGHER YIELDS BY THOMAS T VOGEL JR AND CARL QUINTANILLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MANY INVESTORS AREN'T EVEN BRINGING PLATES TO THIS WEEK'S 25 BILLION BUFFET OF PLANNED JUNK BOND DEALS THESE INVESTORS ARE MAKING THE DEMANDS FOR HIGHER YIELDS AND TURNING A FICKLE EYE ON THE LONG LIST OF COMPANIES THAT WANT TO SELL THEIR DEBT THIS IS IN SHARP CONTRAST TO MOST OF LAST YEAR WHEN YIELDHUNGRY INVESTORS LINED UP TO BUY NEW OFFERINGS OF JUNK BONDS AND CORPORATIONS COULD PRACTICALLY DICTATE THE YIELDS THEY WANTED TO PAY THE JUNK BOND MARKET CONTINUES TO BE PLAGUED BY THE INSTABILITY CAUSED BY RISING INTEREST RATES AND AS A RESULT A NUMBER OF COMPANIES ARE DELAYING THEIR OFFERINGS IN HOPES THAT THE MARKET WILL SETTLE DOWN ACCORDING TO ANALYSTS SOME CORPORATIONS ARE THINKING ABOUT RAISING THE YIELDS ON THEIR JUNK BONDS OFFERINGS IN ORDER TO ATTRACT ENOUGH INVESTOR INTEREST THE YIELD ON THE BENCHMARK 30YEAR TREASURY BOND DIPPED TO 697 AFTER HITTING A 10MONTH HIGH ON FRIDAY OF 701 ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF THE YIELD ROSE NEARLY 1/2 POINT OR NEARLY 5 FOR A BOND WITH 1000 FACE VALUE TO 90 30/32 ONE OF THE WEEK'S MOST CLOSELY WATCHED SCHEDULED DEALS A 350 MILLION OFFERING OF 10YEAR NOTES FROM NORTHWEST AIRLINES CORP WAS DELAYED YESTERDAY ACCORDING TO ANALYSTS THE COMPANY HAD HOPED TO GET AN 11 COUPON FOR THE DEAL BUT MORE INVESTORS DEMANDED A COUPON OF 12 OR EVEN HIGHER WHICH BY LATE YESTERDAY THE COMPANY WAS NOT PREPARED TO ACCEPT LEHMAN BROTHERS OFFICIALS SAID NORTHWEST MAY STILL TRY TO LAUNCH THE DEAL TODAY ALTHOUGH MARKET ANALYSTS AND MONEY MANAGERS WERE NOT SO OPTIMISTIC THE PRICE OF THE COMPANY'S OUTSTANDING DEBT DROPPED SHARPLY IN REACTION TO THE DELAY BY LATE YESTERDAY THE 8 5/8 COUPON NOTES OF NORTHWEST AIRLINES INC A UNIT OF NORTHWEST AIRLINES CORP HAD DROPPED THREE POINTS OR 30 FOR A BOND WITH 1000 FACE VALUE TO 89 THE YIELD ROSE TO 1429 FROM 127 THE PRICING LIST WAS WAY TOO BIG SAID KINGMAN PENNIMAN HEAD OF HIGHYIELD RESEARCH AT DUFF & PHELPS AND THE DEALS WERE COMING WITH PRICE TALK THAT DIDN'T REFLECT WHAT'S HAPPENING IN THE SECONDARY MARKET WHERE JUNK BOND PRICES HAVE BEEN GETTING HAMMERED ACCORDING TO DUFF & PHELPS BY YESTERDAY MORNING THE PRICES OF 239 ISSUES THAT IT TRACKED WERE DOWN WHILE ONLY 21 ISSUES HAD RISEN WE FIND NO CAUSE FOR OPTIMISM THAT WOULD SUGGEST THAT AS MUCH AS 25 BILLION IN NEW ISSUANCE COULD COME IN A SHORTENED WEEK AT AGGRESSIVE PRICE LEVELS DUFF & PHELPS SAID IN ITS MORNING COMMENTARY YESTERDAY MANY OF THE WORLD'S BOND MARKETS WILL BE CLOSED FRIDAY IN OBSERVANCE OF THE GOOD FRIDAY HOLIDAY WE WOULD NOT BE SURPRISED TO SEE THE TIMING OF MANY OF THESE PROSPECTIVE ISSUES DELAYED THE COMMENTARY CONTINUED TWO OTHER DEALS THAT MAY BE DELAYED OR SEE A SUBSTANTIAL BOOST IN THE OFFERED YIELDS ARE A 575 MILLION OFFERING OF 10YEAR MORTGAGE NOTES FROM HUNTSMAN CORP AND A 600 MILLION TWOPART OFFERING FROM THRIFTY PAYLESS A SUBSIDIARY OF TPH CORP ACCORDING TO MR PENNIMAN THIS IS NOT NECESSARILY NEGATIVE MR PENNIMAN ADDED BUT AT A TIME OF UNCERTAIN DEMAND WE HAVE TOO MUCH SUPPLY AND IT BEHOOVES THE MARKET TO PULL IT BACK HE SAID IT'S A WEEK FOR THE MARKET TO REACT TO ALL THE UNPLEASANT AND TRAGIC EVENTS OF THE LAST WEEK HE EXPLAINED ACCORDING TO DUFF & PHELPS THRIFTY PAYLESS HAD BEEN SEEKING A YIELD OF 10 TO 10 1/4 FOR 200 MILLION OF NINEYEAR SENIOR NOTES AND A YIELD OF 10 3/4 TO 11 FOR 400 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES MR PENNIMAN SAID HE EXPECTS THE COMPANY TO BOOST THE YIELD TO ATTRACT MORE DEMAND WEAK DEMAND LED AK STEEL HOLDING CORP TO REVISE PRICE TALK ON A PLANNED 325 MILLION OFFERING OF 10YEAR SENIOR NOTES THE COMPANY HAD BEEN HOPING TO PRICE THE DEAL WITH A YIELD OF 9 3/4 TO 10 BUT NOW IT HOPES TO PRICE IT BETWEEN 10 1/4 AND 10 1/2 SAID A SYNDICATE OFFICIAL AT LEAD UNDERWRITER CS FIRST BOSTON INC THE SIZE OF THE DEAL FROM NORTHWEST THE NATION'S FOURTHLARGEST AIRLINE HAD ALREADY BEEN REDUCED BY 50 MILLION WHEN IT RAN INTO DIFFICULTY YESTERDAY BUT INDUSTRY ANALYSTS REACTED STRONGLY TO THE NEWS OF THE WEAK DEMAND ESPECIALLY IN THE WAKE OF NORTHWEST'S SHAKY INITIAL PUBLIC OFFERING LAST WEEK THE IPO WHICH OFFERED 20 MILLION SHARES OR ABOUT A 25 INTEREST IN NORTHWEST HAD BEEN PLANNED AT AN ASKING PRICE OF 19 TO 21 A SHARE BUT A LUKEWARM RESPONSE FROM THE MARKET FORCED THE CARRIER TO SLASH ITS ASKING PRICE TO 13 A SHARE THE STOCK CLOSED YESTERDAY IN NASDAQ STOCK MARKET TRADING AT 12 5/8 DOWN 1/8 NORTHWEST WAS TAKEN PRIVATE IN 1989 IN A 36 BILLION LEVERAGED BUYOUT NOW WITH THE LOWERPRICED IPO AND AN UNCERTAIN BOND OFFERING NORTHWEST IS EXPECTED TO RAISE LESS THAN ITS INITIAL TARGET FOR 1994 OF 12 BILLION THE AIRLINE IS OBLIGATED TO RAISE AT LEAST 500 MILLION BY 1996 TO COMPLY WITH A RESTRUCTURING AGREEMENT IT MADE WITH ITS UNIONS LAST YEAR THE IPO RAISED ABOUT HALF THAT AMOUNT AND NORTHWEST WAS COUNTING ON THE BOND OFFERING TO RAISE THE BALANCE DEFERRING THE PLANNED BOND ISSUE MIGHT REDUCE INVESTORS' WILLINGNESS TO TAKE UP SHARES IN A POSSIBLE SECOND STOCK OFFERING LATER THIS YEAR ANALYSTS SAID THOSE INVESTORS WHO WERE ALREADY CONCERNED ABOUT NORTHWEST'S HEAVY DEBT LOAD MAY THINK EVEN LESS OF AN AIRLINE THAT FAILS TO DELIVER ON TWO CONSECUTIVE DEALS NEITHER THE STOCK NOR THE DEBT IS A VERY EXCITING OFFERING SAID DAVID M KLASKIN PRESIDENT OF OAK RIDGE INVESTMENTS IN CHICAGO THERE ARE TOO MANY VARIABLES OUTSIDE OF MANAGEMENT'S CONTROL AND IT'S AMAZING HOW MUCH LEVERAGE IS INVOLVED NORTHWEST OFFERING DOCUMENTS INDICATED THAT PROCEEDS FROM BOTH THE IPO AND THE PLANNED BOND OFFERING WOULD HAVE GONE TO PAY DOWN BANK DEBT AND TO UPGRADE ITS FLEET NOW ONE OF THE OLDEST IN THE INDUSTRY NORTHWEST HAS LOST MORE THAN 1 BILLION SINCE 1990 BUT THE AIRLINE TURNED PROFITABLE IN THE SECOND HALF OF LAST YEAR POSTING EARNINGS IN TWO CONSECUTIVE QUARTERS PART OF THE TURNAROUND WAS ATTRIBUTED TO LOWER COSTS RESULTING FROM 866 MILLION IN WAGE AND BENEFIT CONCESSIONS MADE BY ITS UNIONS AS A RESULT SOME ANALYSTS ARE STILL BULLISH ON THE AIRLINE AND EXPECT IT TO EARN CLOSE TO 300 MILLION THIS YEAR THE TROUBLE WITH THE BOND OFFERING DOESN'T REALLY CONCERN ME SAYS RAYMOND E NEIDL AN ANALYST WITH FURMAN SELZ THEY DON'T NEED THE MONEY RIGHT AWAY AND IT MIGHT BE BETTER TO WAIT UNTIL THEY HAVE ADDITIONAL GOOD QUARTERS TO REPORT REFLECTING THE MALAISE THAT HAS BEEN GRIPPING THE BOND MARKET PRICES OF US TREASURY SECURITIES EKED OUT ONLY MODERATE GAINS DESPITE A SIZEABLE DECLINE IN COMMODITIES PRICES THE 10YEAR NOTE ROSE LESS THAN 1/4 POINT TO 94 21/32 TO YIELD 660 DOWN FROM 663 ON FRIDAY TRADERS SAID INVESTORS REMAIN UNWILLING TO COMMIT SIGNIFICANT AMOUNTS OF NEW CASH TO THE BOND MARKET EVEN WHEN BULLISH NEWS EMERGES WITHOUT THE HELP OF INSTITUTIONAL INVESTORS THE MARKET WILL CONTINUE HAVING A HARD TIME RALLYING PLAYERS SAID FALLING COMMODITIES PRICES ARE USUALLY GREETED BY BOND INVESTORS AS A SIGN OF WANING INFLATIONARY PRESSURES BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THIS IS A BEAR MARKET SAID TIM HEATON A BOND TRADER AT NIKKO SECURITIES CO ANY GOOD NEWS IS GOING TO BE DISCOUNTED AND BAD NEWS IS GOING TO BE MAGNIFIED HE SAID BUT THE DECLINES DID LITTLE TO EASE INFLATION CONCERNS AND ATTRACT BUYERS INTO THE BOND MARKET TRADERS NOTED THAT MOST COMMODITY PRICES HAVE BEEN ON AN UPTREND FOR MONTHS A ONEDAY DECLINE IN COMMODITY PRICES IS NOT ENOUGH TO SET ASIDE ALL THOSE RECENT FEARS ABOUT AN EXPANDING ECONOMY AND INFLATION SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS FRIDAY'S MARCH EMPLOYMENT DATA IS WIDELY EXPECTED TO SHOW A SOLID BOUNCEBACK IN NONFARM PAYROLL EMPLOYMENT GROWTH FOLLOWING THE WEATHERDEPRESSED READINGS IN JANUARY AND FEBRUARY ECONOMISTS ARE CALLING FOR AN INCREASE IN PAYROLLS OF ABOUT 250000 ALTHOUGH THE PUBLIC SECURITIES ASSOCIATION HAD RECOMMENDED THAT THE BOND MARKET BE CLOSED FRIDAY IN OBSERVANCE OF THE GOOD FRIDAY HOLIDAY TRADERS AT A NUMBER OF MAJOR FIRMS SAID THEY HAVE DECIDED TO HAVE LIMITED STAFF IN PLACE FOR TRADING IN THE CASH BOND MARKET FRIDAY FACED WITH THE PROSPECT OF TRADERS AND INVESTORS BEING UNABLE TO RESPOND TO THE KEY EMPLOYMENT DATA UNTIL SUNDAY NIGHT BOTH THE CHICAGO BOARD OF TRADE AND THE CHICAGO MERCANTILE HAD ALREADY DECIDED TO OPEN FOR AN ABBREVIATED SESSION TRADING IN THE CASH MARKET IS ALSO LIKELY TO END BY MIDDAY FRIDAY MUNICIPAL BONDS GENERALLY WERE 1/2 POINT LOWER AT THE CLOSE MUNIS WERE HIT BY SELLING LISTS THAT TOTALED WELL OVER 100 MILLION TRADERS SAID BOND FUNDS WERE SAID TO BE RESPONSIBLE FOR MUCH OF THE UNLOADING AMONG THE DECLINERS WAS THE NEW YORK TRIBOROUGH BRIDGE & TUNNEL AUTHORITY'S 5 OF 2024 BONDS THEY WERE ABOUT 5/8 LOWER AT 8462 IN LATE TRADING YIELDING 610 IN LIGHT NEWISSUE ACTION THE NEW YORK CITY EDUCATIONAL CONSTRUCTION FUND'S 1386 MILLION SERIES 1994 REVENUE BONDS WERE PRICED BY A MORGAN STANLEY & CO GROUP TO YIELD FROM 305 IN OCTOBER 1994 TO 6 IN 2013 MORTGAGE SECURITIES FINISHED LITTLE CHANGED UNDERPERFORMING TREASURY ISSUES FOR THE THIRD SESSION IN A ROW I'M JUST SITTING HERE WATCHING THIS AND EACH DAY IT GETS UGLIER AND UGLIER SAID A PASSTHROUGH TRADER ON A MORTGAGE DESK IN NEW YORK DEALERS ARE FLUSH WITH BAD POSITIONS HE SAID AND INVESTORS AREN'T AROUND TO OFFER AN OUTLET AMONG 75 MORTGAGE SECURITIES FOR APRIL DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SLIPPED 1/32 TO 99 9/32 FEDERAL HOME LOAN MORTGAGE CORP GOLDS WERE UNCHANGED AT 99 25/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION WAS UNCHANGED AT 99 19/32 SARAH BOWEN CONTRIBUTED TO THIS ARTICLE 9403290139 940329 QUEBECOR PRINTING GETS CONTRACT OTTAWA ONTARIO QUEBECOR PRINTING INC'S B A BANKNOTE DIVISION SAID IT HAS RECEIVED A MAJOR CONTRACT TO PRINT BANKNOTES FOR BANQUE DU LIBAN THE COMPANY SAID THE CONTRACT CALLS FOR THE PRINTING OF NOT LESS THAN 29 MILLION LEBANESE POUND NOTES IN 5000 20000 50000 AND 100000 DENOMINATIONS THE VALUE OF THE CONTRACT WASN'T DISCLOSED 9403290138 940329 INTERNATIONAL BRAZIL'S CHOICE FOR FINANCE CHIEF WAITS FOR A CALL BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO WITH FERNANDO HENRIQUE CARDOSO VIRTUALLY CERTAIN TO RESIGN AS FINANCE MINISTER TO SEEK BRAZIL'S PRESIDENCY RUBENS RICUPERO IS SET TO SUCCEED HIM THOUGH THE FORMAL ANNOUNCEMENT OF THE CHANGE HASN'T BEEN MADE YET AND MR CARDOSO STILL SAYS HE HASN'T MADE UP HIS MIND PRESIDENT ITAMAR FRANCO CUT SHORT THE SUSPENSE CONFIRMING OVER THE WEEKEND THAT HE HAD SELECTED MR RICUPERO A CAREER DIPLOMAT WHO IS CURRENTLY ENVIRONMENT MINISTER TO BECOME THE FIFTH FINANCE MINISTER IN MR FRANCO'S 18MONTHOLD PRESIDENCY HE'S GOOD BECAUSE HE'S OF THE SAME CALIBER AS FERNANDO MR FRANCO WHO IS NOT ALLOWED TO RUN IN THE ELECTION TOLD THE NEWSPAPER JORNAL DO BRASIL HE'S AN INTELLECTUAL WELLPREPARED HE UNDERSTANDS ECONOMICS AND THE COUNTRY'S FINANCIAL DIFFICULTIES I WILL REGRET FERNANDO'S DEPARTURE MR FRANCO ADDED BUT AS A POLITICIAN THIS IS AN OPPORTUNITY HE CAN'T WASTE A GOVERNMENT OFFICIAL CONFIRMED YESTERDAY THAT MR RICUPERO HAD BEEN OFFERED THE JOB AND IS ONLY AWAITING MR CARDOSO'S ANNOUNCEMENT TO ACCEPT MR CARDOSO A 62YEAROLD SOCIAL DEMOCRAT WHO HAS MANAGED TO PARLAY HIS POSITION INTO HIGH PERSONAL POPULARITY DESPITE BRAZIL'S 40 A MONTH INFLATION IS EXPECTED TO RESIGN BY TOMORROW AT THE LATEST BRAZIL'S CONSTITUTION OBLIGES EXECUTIVE OFFICESEEKERS TO LEAVE THEIR JOBS SIX MONTHS BEFORE THE ELECTIONS WHICH ARE SCHEDULED FOR OCT 3 MR CARDOSO'S LIKELY DEPARTURE ONLY WEEKS AFTER UNVEILING BRAZIL'S LATEST PLAN TO CURB RUNAWAY INFLATION IS ALREADY EXPOSING HIM TO CRITICISM FROM HIS LEADING RIVAL LUIS INACIO LULA DA SILVA THE LEADER OF THE LEFTWING WORKERS' PARTY FERNANDO HENRIQUE IS ACTING LIKE A MOTHER WHO ENTERS A MATERNITY TO GIVE BIRTH AND THEN FORGETS THE BABY SAYS MR DA SILVA WHO CURRENTLY RANKS FIRST IN PUBLIC OPINION POLLS MR CARDOSO IS LIKELY TO ARGUE THAT THE BEST WAY TO ENSURE THE CONTINUITY OF THE STABILIZATION PLAN IS TO ELECT HIM TO A FOURYEAR TERM AS PRESIDENT AND IN THE MEANTIME THE TEAM OF ECONOMISTS AND OFFICIALS WITH WHOM HE CONCEIVED THE PLAN IS EXPECTED TO STAY IN OFFICE TO ADVISE MR RICUPERO WHO IS KNOWN TO BE A FIRM ENEMY OF INFLATION IN THE SHORTTERM NOTHING IS MORE IMPORTANT FOR BRAZIL THAN TO END INFLATION MR RICUPERO WHO WAS AMBASSADOR TO THE US WROTE RECENTLY STILL MR RICUPERO FACES TOUGH CHALLENGES ON THE INTERNATIONAL FRONT HE HAS TO PUT THE FINISHING TOUCHES TO BRAZIL'S LONGDELAYED RESTRUCTURING AGREEMENT ON ITS 52 BILLION DEBT TO FOREIGN CREDITORS WHICH IS DUE TO BE COMPLETED BY APRIL 15 AND AT HOME HE FACES THE DIFFICULT TASK OF IMPLEMENTING THE CENTERPIECE OF MR CARDOSO'S PLAN THE PROGRESSIVE PHASING IN OF A NEW CURRENCY HE ALSO WILL HAVE TO REIN IN PUBLIC SPENDING IN AN ELECTION YEAR WHICH COULD TRIGGER POLITICAL STRUGGLES MR FRANCO IS ALREADY EMBROILED IN BATTLES WITH MEMBERS OF CONGRESS AND THE SUPREME COURT WHO HE ACCUSED OF UNDERMINING THE PLAN BY GRANTING THEMSELVES LARGE RAISES 9403290137 940329 S&P 500 INDEX TO DROP FEDDERS NEW YORK STANDARD & POOR'S CORP SAID IT WILL REMOVE FEDDERS CORP FROM THE S&P 500 INDEX AFTER THE CLOSE OF TRADING APRIL 5 THE RATINGS AGENCY SAID THE REMOVAL OF FEDDERS SHOULD NOT BE INTERPRETED AS A COMMENT ON THE INVESTMENT MERITS OF FEDDERS SECURITIES THE COMPANY'S CURRENT MARKET VALUE IS 172 MILLION RANKING 499TH IN THE 500 INDEX PACIFIC TELESIS GROUP IS COMPLETING THE SPIN OFF ITS CELLULAR AND PAGING OPERATIONS THE PACTEL CORP OPERATIONS WILL BE RENAMED AIRTOUCH COMMUNICATIONS AND ADDED TO THE S&P 500 9403290136 940329 ENERGY VENTURES PLACES NOTES HOUSTON ENERGY VENTURES INC SAID IT PRIVATELY PLACED 120 MILLION OF 10 1/4 SENIOR NOTES DUE 2004 THE OILFIELD SERVICE AND EQUIPMENT COMPANY SAID IT WOULD USE THE PROCEEDS TO REPAY SUBSTANTIALLY ALL OF ITS OUTSTANDING DEBT AND FOR GENERAL CORPORATE PURPOSES 9403290135 940329 WHO'S NEWS MTC ELECTRONIC BOARD TO ASK THAT CHAIRMAN RESIGN PENDING INQUIRY VANCOUVER BRITISH COLUMBIA DIRECTORS OF MTC ELECTRONIC TECHNOLOGIES CO SAID THEY WILL ASK THE COMPANY'S CHAIRMAN AND ANOTHER DIRECTOR HIS BROTHER TO RESIGN PENDING AN INQUIRY INTO THE CHAIRMAN'S FINANCIAL DEALINGS IN A STATEMENT ISSUED FROM THE COMPANY'S HONG KONG OFFICE THE AUDIT COMMITTEE OF MTC'S BOARD SAID IT CALLED A SPECIAL MEETING TO REQUEST THAT A COMMITTEE INQUIRE INTO FINANCIAL DEALINGS BETWEEN MTC CHAIRMAN AND PRESIDENT MIKO LEUNG THE COMPANY AND PERSONS CONNECTED WITH THE COMPANY THE AUDIT COMMITTEE SAID THAT TO ENSURE THE INDEPENDENCE OF THE INQUIRY IT WILL REQUEST THE RESIGNATION OF MR LEUNG AND SIT WA LEUNG MTC'S CORPORATE SECRETARY AND A DIRECTOR OF THE COMPANY BOTH MEN NAMED BY THE COMMITTEE WERE IN HONG KONG AND COULD NOT BE REACHED FOR COMMENT LAST NIGHT MTC REPRESENTATIVES CONTACTED AT THE COMPANY'S VANCOUVER HEADOFFICE AND AT PUBLIC RELATIONS FIRM FLEISCHMAN HILLARD NEW YORK SAID THEY COULDN'T COMMENT ON THE STATEMENT BECAUSE IT HAD TAKEN THEM BY SURPRISE A VANCOUVER SPOKESWOMAN SAID A DIRECTORS' MEETING WAS CALLED FOR TODAY IN HONG KONG IN BRISK TRADING ON THE NASDAQ STOCK EXCHANGE YESTERDAY THE CONSUMERELECTRONICS MANUFACTURING AND TRADING COMPANY'S STOCK CLOSED AT 4125 DOWN 225 THE STOCK HAS BEEN EXTREMELY VOLATILE FOR OVER A YEAR IN THE PAST 52 WEEKS IT HAS TRADED AS HIGH AS 1375 A SHARE 9403290134 940329 HORSHAM AGREES TO ACQUIRE 43 STAKE IN BIG PROPERTY FIRM FOR 4361 MILLION BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO HORSHAM CORP AGREED IN PRINCIPLE TO ACQUIRE 43 OF TRIZEC CORP A DEBTPLAGUED REALESTATE CONCERN CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN FOR 600 MILLION CANADIAN DOLLARS US4361 MILLION THE MOVE WOULD PLACE HORSHAM A HOLDING COMPANY IN CONTROL OF ONE OF NORTH AMERICA'S LARGEST PORTFOLIOS OF OFFICE BUILDINGS AND SHOPPING CENTERS THE PORTFOLIO WOULD INCLUDE HAHN CO A SHOPPINGMALL CONCERN IN SAN DIEGO THAT IS CONSIDERED TRIZEC'S BEST ASSET THE REALESTATE COMPANY ALSO OWNS OFFICE PROPERTIES IN HOUSTON LOS ANGELES AND OTHER CITIES HORSHAM CONTROLLED BY FINANCIER PETER MUNK RECENTLY AMASSED A US1 BILLION CASH HOARD TO EXPAND ITS INTERESTS BEYOND GOLD MINING AND OIL REFINING AND MARKETING WE'VE ALWAYS HAD A STRATEGY OF LOOKING FOR GOODQUALITY ASSETS AND MANAGEMENT WE THINK WE CAN HELP THE MANAGEMENT OF TRIZEC REVITALIZE THE COMPANY AND MAKE IT ONE OF THE PREMIER REALESTATE COMPANIES IT ONCE WAS SAID GREGORY WILKINS A HORSHAM EXECUTIVE DIRECTOR BUT THE PROPOSED ACQUISITION STILL COULD FOUNDER ON TRIZEC'S FINANCIAL DIFFICULTIES BEFORE COMPLETING THE DEAL WITH HORSHAM TRIZEC MUST WIN AGREEMENT FROM ITS CREDITORS TO RESTRUCTURE SOME C19 BILLION OF DEBT SENIOR CREDITORS WHO HOLD C12 BILLION OF DEBENTURES HAVE SO FAR RESISTED THE CALGARY ALBERTA COMPANY'S PLAN WHICH CALLS FOR EXCHANGING ALL ITS DEBT FOR NEW SHARES AFTER SENIOR CREDITORS DEMANDED REPAYMENT OF THEIR DEBT LAST WEEK TRIZEC OBTAINED A COURT ORDER BLOCKING ANY MOVES AGAINST THE COMPANY'S ASSETS EVEN IF TRIZEC SUCCEEDS IN RESTRUCTURING ITS CORPORATE DEBT IT STILL HAS C33 BILLION OF SUBSIDIARIES' DEBT THAT IS SECURED BY VARIOUS PROPERTY HOLDINGS OF THIS ABOUT C850 MILLION MUST BE REFINANCED THIS YEAR AND NEXT MR WILKINS SAID HORSHAM SUPPORTS THE OPERATING PLANS OF TRIZEC'S EXISTING MANAGEMENT HE SAID HE EXPECTS HORSHAM'S BACKING WILL ENABLE TRIZEC MORE READILY TO SECURE REFINANCING COMMITMENTS AND AT A LOWER COST TRIZEC IS LIMITED ON ITS OWN BECAUSE OF THE FINANCIAL DIFFICULTIES IT HAS GONE THROUGH HE SAID ABOUT THREEFOURTHS OF TRIZEC'S PROPERTY HOLDINGS ARE IN THE US WITH THE REST IN CANADA I THINK HORSHAM IS BUYING THE TRIZEC STAKE AT A RELATIVELY CONSERVATIVE VALUATION OF THE ASSETS WITH A SIGNIFICANT APPRECIATION VALUE SAID JULIAN SCHROEDER AN ANALYST AT BDS SECURITIES IN NEW YORK INVESTORS AT FIRST WERE LEERY OF HORSHAM'S PROPOSED INVESTMENT IN TRIZEC DRIVING HORSHAM SHARES DOWN MORE THAN 5 THE SHARES THEN RECOVERED MOST OF THIS CLOSING IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AT 15125 DOWN 125 CENTS OR 08 HORSHAM HAS MADE OUT WELL BY TAKING LONG SHOTS IN ITS INVESTMENT STRATEGY A US30 MILLION INVESTMENT IN GOLDMINING CONCERN AMERICAN BARRICK RESOURCES CORP IN THE MID1980S IS TODAY WORTH OVER A BILLION DOLLARS HORSHAM ALSO OWNS CLARK REFINING & MARKETING INC OF ST LOUIS WHICH IT BOUGHT OUT OF BANKRUPTCY COURT ALL OF THEIR MOVES HAVE BEEN RISKY BUT I DON'T KNOW ANYONE WHO HAS MADE ANY MONEY BETTING AGAINST PETER MUNK SAID TONY HINE AN ANALYST AT SCOTIAMCLEOD INC IN TORONTO UNDER TERMS OF THE AGREEMENT WITH TRIZEC HORSHAM INITIALLY WOULD INVEST C500 MILLION TO ACQUIRE SOME OF THE OUTSTANDING SENIOR DEBENTURES THE DEBENTURES TO BE PURCHASED AT LESS THAN FACE VALUE HAVE RECENTLY TRADED IN THE SECONDARY MARKETS AT ABOUT 90 CENTS FOR EVERY DOLLAR OF DEBT AND ACCUMULATED INTEREST HORSHAM WOULD THEN EXCHANGE ITS DEBENTURES FOR NEW SHARES AS PART OF TRIZEC'S RESTRUCTURING PLAN WHICH ALSO NEEDS THE APPROVAL OF OTHER CREDITORS HORSHAM WOULD END UP WITH A 43 STAKE AFTER INVESTING ANOTHER C100 MILLION AS PART OF A PROPOSED RIGHTS OFFERING THAT TRIZEC EXPECTS WILL RAISE C200 MILLION TO BE USED TO STRENGTHEN ITS BALANCE SHEET THE REST OF TRIZEC'S SHARES WILL BE HELD BY OTHER CREDITORS AND SHAREHOLDERS FOLLOWING THE RESTRUCTURING THE BRONFMANS' HOLDING WOULD BE LESS THAN 10 TRIZEC SAID THE FAMILY HAS BEEN VERY SUPPORTIVE OF THE COMPANY'S RESTRUCTURING EFFORT PETER AND EDWARD BRONFMAN ARE COUSINS OF THE MONTREAL BRONFMANS WHO RUN SEAGRAM CO THE TWO FAMILIES HAVE NO BUSINESS INTERESTS IN COMMON 9403290133 940329 TRADE GROUP NOTES DECLINE IN VALUE OF PIRATE SOFTWARE WASHINGTON THE VALUE OF PIRATED SOFTWARE FELL 23 LAST YEAR ACCORDING TO A TRADE GROUP BUT THAT REFLECTED SOFTWARE PRICE CUTS AVERAGING 25 TO 45 RATHER THAN A DECLINE IN PIRACY THE SOFTWARE PUBLISHERS ASSOCIATION SAID THE PERSONALCOMPUTER INDUSTRY LOST 74 BILLION TO SOFTWARE PIRACY WORLDWIDE LAST YEAR DOWN FROM 97 BILLION A YEAR EARLIER IT ESTIMATED THE AMOUNT OF PIRATED SOFTWARE ACTUALLY EDGED UP ALTHOUGH THE INCREASE SLOWED SHARPLY FROM PAST YEARS THE BIGGEST DOLLAR AMOUNT OF PIRACY WAS IN THE US WHERE THE GROUP SAID THE INDUSTRY LOST 16 BILLION BUT ACCORDING TO THE GROUP ONLY 33 OF THE SOFTWARE USED IN THE US IS PIRATED OR COPIED ILLEGALLY DOWN FROM 36 IN 1992 ONLY THE UK AT 27 SINGAPORE AT 29 AND GERMANY AT 33 HAD AS LOW A RATE OR LOWER THE ASSOCIATION SAID THE WORLD'S HIGHEST PIRACY RATES ARE IN INDIA AND PAKISTAN WHERE 95 OF THE SOFTWARE IN USE IS PIRATED AND KOREA AND BRAZIL EACH AT 89 THE ASSOCIATION CALCULATES PIRACY BY GETTING STATISTICS ON THE SALE OF NEW PC'S ESTIMATING THAT PEOPLE USE BETWEEN THREE AND SEVEN PROGRAMS ON EACH NEW PC AND THEN COMPARING THOSE FIGURES WITH THE ACTUAL SALES OF SOFTWARE AS REPORTED BY MEMBER COMPANIES IT KEEPS THE NUMBER CONSERVATIVE BY IGNORING SALES OF SOFTWARE FOR EXISTING COMPUTERS 9403290132 940329 VALEO JOINT VENTURE PARIS VALEO SA A FRENCH AUTO PARTS GROUP WILL OWN 55 OF VALEO WENLING AUTOMOTIVE SYSTEMS CO A CHINESE JOINT VENTURE THAT WILL MAKE WIPER SYSTEMS AND ELECTRIC MOTORS FOR THE CHINESE AND INTERNATIONAL MARKETS THE PARTNERS ARE WENLING AUTO PARTS FACTORY 35 AND CHINA NATIONAL AUTOMOTIVE INDUSTRY CORP 10 VALEO DIDN'T DISCLOSE THE COST OF THE INVESTMENT 9403290131 940329 POLITICS & POLICY COELHO RETURNING TO CAPITAL AS OUTSIDE ADVISER TO CLINTON PUTS HIS MARK ON WHITE HOUSE MOVES BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ONE RECENT FRIDAY EVENING PRESIDENT CLINTON DINED WITH A SMALL GROUP OF FRIENDS WATCHED THE MOVIE THE HUDSUCKER PROXY WITH THEM AND CHATTED FOR 20 MINUTES WITH ONE OF THE WHITE HOUSE'S MOST IMPORTANT INFORMAL ADVISERS FORMER REP TONY COELHO OF CALIFORNIA THE SCENE ISN'T UNUSUAL MR COELHO WHO RESIGNED FROM CONGRESS UNDER A CLOUD OF SCANDAL IN 1989 IS BACK ROAMING THE HALLS OF POWER IN WASHINGTON ONLY THIS TIME THE HALLS ARE LOCATED AT THE OTHER END OF PENNSYLVANIA AVENUE AT THE CLINTON WHITE HOUSE THE 51YEAROLD INVESTMENT BANKER IN SOME WAYS IS A SURPRISE CHOICE AS CONFIDANTE TO THE SENIOR CLINTON STAFF AFTER ALL HE RESIGNED AS THE HOUSE'S THIRDRANKING DEMOCRAT IN THE WAKE OF A CONTROVERSY EERILY REMINISCENT OF THE WHITEWATER FLAP IT INVOLVED A PERSONAL INVESTMENT IN HIS CASE A JUNK BOND THAT WAS COMPLETED WITH THE HELP OF A SAVINGS AND LOAN EXECUTIVE BUT IN OTHER WAYS MR COELHO'S FREQUENT PRESENCE IS A NATURAL OUTGROWTH OF HIS 24YEAR CAREER FIRST AS A CONGRESSIONAL AIDE AND THEN A MEMBER OF CONGRESS HIS OWN FORMER STAFFERS AND A SLEW OF OTHER ADMIRERS ARE SPRINKLED THROUGHOUT THE UPPER REACHES OF THE WHITE HOUSE STAFF AS A RESULT HE IS ON THE TELEPHONE WITH SOMEONE THERE ALMOST DAILY AND EVEN THOUGH HE IS BASED IN NEW YORK PARTICIPATES IN WHITE HOUSE MEETINGS TWO OR THREE TIMES A MONTH OR SOMETIMES EVEN MORE FREQUENTLY A LOT OF PEOPLE VALUE HIS ADVICE INCLUDING MYSELF SAYS PATRICK GRIFFIN THE PRESIDENT'S TOP CONGRESSIONAL LOBBYIST I TALK TO HIM WHENEVER I GET A CHANCE THE FORMER CONGRESSMAN'S UNUSUAL ROLE REFLECTS THE DEGREE TO WHICH THE CLINTON WHITE HOUSE WITH A STAFF SHORT ON WASHINGTON EXPERIENCE RELIES ON OUTSIDERS FOR HELP MR COELHO DECLINES TO DISCUSS THE COUNSEL HE HAS GIVEN WHEN I CALL THEM WITH ADVICE OR WHEN THEY CALL ME AND ASK FOR ADVICE THEY'RE NOT AFRAID IT'S GOING TO APPEAR IN THE NEWSPAPER HE EXPLAINS THAT'S A TREMENDOUS VALUE TO HAVE STILL THE MEMBERS OF HIS NETWORK BOTH INSIDE AND OUTSIDE THE WHITE HOUSE SAY HIS FINGERPRINTS HAVE SHOWN UP ON MANY OF MR CLINTON'S TACTICS AND STRATEGIES OVER THE PAST SEVERAL MONTHS RANGING FROM MATTERS OF SCHEDULING TO SIGNIFICANT QUESTIONS OF POLICY TAKE THE ANTICRIME BILL THAT IS MAKING ITS WAY THROUGH CONGRESS THE PRESIDENT OF COURSE IS RESPONSIBLE FOR DESIGNATING THE ISSUE A PRIORITY BUT MR COELHO IS BEHIND THE THINKING FOR SOME OF MR CLINTON'S CRIMERELATED PUBLIC EVENTS SINCE INCREASING THE NUMBER OF POLICE ON THE STREETS IS A CLINTON IDEA MR COELHO URGED THE PRESIDENT SHOULD APPEAR AS OFTEN AS HE CAN WITH POLICE IN HIS PRESENCE AND THAT HAS BEEN HIS PATTERN FOR MONTHS MR COELHO ALSO WAS ACTIVE IN PLANNING THE PRESIDENT'S STRATEGY LAST YEAR FOR WINNING PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT MEETING WEEKLY WITH THE NAFTA WAR ROOM STAFF HIS CONTRIBUTIONS TO BROADEN THE ARGUMENT FOR THE TRADE PACT INTO NATIONAL SECURITY CONCERNS AND TO PERSUADE THE WHITE HOUSE TO TREAD LIGHTLY WHEN TALKING ABOUT THE OPPOSITION TO THE PACT BY THE WELLREGARDED HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO AT THE SAME TIME NOT ALL OF MR COELHO'S ADVICE IS HEEDED SINCE LATE LAST YEAR MR COELHO HAS BEEN PRESSING ANYONE AT THE WHITE HOUSE WHO WILL LISTEN TO DISCLOSE EVERYTHING AVAILABLE ABOUT THE CONTINUING WHITEWATER CONTROVERSY SELFDISCLOSURE HE REASONED WOULD BE EASIER TO CONTROL THAN INCREMENTAL DISCLOSURES BY OTHERS LAST SPRING AND SUMMER MR COELHO MET ALMOST EVERY FRIDAY WITH THOMAS MCLARTY THE WHITE HOUSE CHIEF OF STAFF TO TALK ABOUT A RANGE OF ISSUES LATER MR COELHO WAS IN THE RUNNING FOR A SENIOR WHITE HOUSE JOB PERHAPS EVEN MR MCLARTY'S BUT IT CAME TO NAUGHT PARTLY BECAUSE MR COELHO WARNED THE WHITE HOUSE HIS APPOINTMENT WOULD CREATE A SPATE OF BAD PUBLICITY EVEN THOUGH HE WAS EXONERATED OF WRONGDOING BY THE JUSTICE DEPARTMENT ACCORDING TO HIS WHITE HOUSE ALLIES MR COELHO TOOK PAINS TO SAY HIS APPOINTMENT MIGHT HURT NOT ONLY HIMSELF BUT THE PRESIDENT AND THE WHITE HOUSE SHOULD BE WARY SO INSTEAD MR COELHO HAS TAKEN THE NONSTAFF ROUTE FOR HIS ADVICEGIVING AND BOTH THE FORMER CONGRESSMAN WHO IS MAKING MORE THAN 1 MILLION A YEAR ON WALL STREET AND THE WHITE HOUSE SEEM PLEASED WITH THE ARRANGEMENT TONY HAS BEEN A VERY GOOD RESOURCE AND FRIEND OF THIS ADMINISTRATION MR MCLARTY SAYS AND HAROLD ICKES A DEPUTY CHIEF OF STAFF SAYS HE TALKS TO MR COELHO ABOUT ONCE A WEEK ON ISSUES RANGING FROM HEALTH CARE TO THE 1994 MIDTERM ELECTIONS HE'S A PERSON WITH AN EXTRAORDINARY AMOUNT OF EXPERIENCE AND INSIGHT I FIND THAT USEFUL ON A FAIRLY REGULAR BASIS MR ICKES SAYS NEITHER MESSRS MCLARTY NOR ICKES HAS WORKED FOR OR WITH MR COELHO PREVIOUSLY BUT A LOT OF PEOPLE AT THE WHITE HOUSE HAVE MR COELHO'S FORMER STAFFERS INCLUDE MARCIA HALE ASSISTANT TO THE PRESIDENT FOR INTERGOVERNMENTAL AFFAIRS THOMAS NIDES CHIEF OF STAFF TO THE PRESIDENT'S TRADE REPRESENTATIVE AND RAHM EMANUEL AND DAVID DREYER WHO ARE SENIOR COMMUNICATIONS ADVISERS IN ADDITION GEORGE STEPHANOPOULOS WHO IS ONE OF MR CLINTON'S CLOSEST ADVISERS WORKED WITH MR COELHO WHEN MR STEPHANOPOULOS WAS A DEMOCRATIC AIDE IN THE HOUSE AND CONTINUES TO REACH OUT TO HIM MR COELHO CONSIDERS THESE DISCIPLES AND MANY OTHERS WHO HOLD SUBSTANTIAL JOBS ON CAPITOL HILL AND AS LOBBYISTS DOWNTOWN HIS EXTENDED FAMILY AND THEY ALL ACCEPT THE APPELLATION AFTER MR DREYER WAS OFFERED HIS WHITE HOUSE JOB HE SAYS HE FIRST CALLED HIS WIFE AND NEXT CALLED MR COELHO I THANKED HIM AND TOLD HIM I WOULDN'T BE HERE UNLESS IT WERE FOR HIM MR DREYER RECALLS IT ISN'T SURPRISING THEN THAT WHEN MR DREYER AND OTHER TOP CLINTON AIDES TURNED TO OUTSIDE EXPERTS FOR HELP WRITING THE STATE OF THE UNION SPEECH THIS YEAR MR COELHO WAS DISPENSING WISDOM BY SPEAKER PHONE NOR IS IT OUT OF THE ORDINARY FOR MESSRS GRIFFIN ICKES AND STEPHANOPOULOS TO ASK MR COELHO HOW BEST TO APPROACH LAWMAKERS ON ANY GIVEN INITIATIVE HE SERVED SEPARATE STINTS AS THE HOUSE DEMOCRATS' CHIEF FUNDRAISER AND VOTE COUNTER HE KNOWS THE PHYSICS OF THE HOUSE MR STEPHANOPOULOS SAYS HE KNOWS WHAT'S GOING ON AS WELL AS ANYBODY MR COELHO STUNNED HIS COLLEAGUES WHEN HE LEFT CONGRESS IN 1989 HIS MAIN PROBLEM WAS A CHARGE THAT HE USED CAMPAIGN FUNDS TO BUY A 100000 JUNK BOND COMPOUNDING THE HINTS OF SCANDAL WAS THE FACT THAT HE BOUGHT THE HARDTOGET BOND FROM THE CONTROVERSIAL DREXEL BURNHAM LAMBERT INC IN PART WITH AN UNDISCLOSED LOAN FROM A THRIFT ASSOCIATION THAT WAS A DREXEL CUSTOMER MR COELHO SAID HE DIDN'T BUY THE BOND WITH CAMPAIGN FUNDS AND ULTIMATELY THE JUSTICE DEPARTMENT SAID IT DIDN'T FIND THAT HE HAD BROKEN ANY LAW MR COELHO ISN'T THE ONLY OUTSIDER CONSULTED BY THE WHITE HOUSE OTHERS INCLUDE JODY POWELL PRESIDENT CARTER'S FORMER SPOKESMAN KIRK O'DONNELL A FORMER TOP AIDE TO HOUSE SPEAKER THOMAS O'NEILL HARRY MCPHERSON FORMER SENIOR ADVISER TO PRESIDENT JOHNSON AND VERNON JORDAN FORMER HEAD OF THE URBAN LEAGUE BUT UNLIKE THESE PEOPLE THE FIRM FOR WHICH MR COELHO WORKS WERTHEIM SCHRODER & CO DOESN'T DO ANY LOBBYING OR GOVERNMENTDIRECTED PUBLIC RELATIONS WORK AND THAT GIVES MR COELHO A FREER REIN WHEN YOU HAVE A FRIEND LIKE THAT WHO DOESN'T HAVE A PERSONAL AGENDA SAYS MR NIDES OF THE TRADE REPRESENTATIVE'S OFFICE HIS ADVICE IS WORTH LISTENING TO WITH OPEN EARS 9403290130 940329 RICHARD BERTOLI FINED GIVEN PRISON SENTENCE FOR OBSTRUCTING JUSTICE NEWARK NJ RICHARD O BERTOLI THE 61YEAROLD FORMER PRESIDENT OF A NOWDEFUNCT NEW YORK SECURITIES FIRM WAS FINED 7 MILLION AND SENTENCED TO MORE THAN EIGHT YEARS IN FEDERAL PRISON FOR SCHEMING TO OBSTRUCT FIVE FEDERAL PROCEEDINGS US ATTORNEY MICHAEL CHERTOFF SAID MR BERTOLI WHO WAS PRESIDENT OF EXECUTIVE SECURITIES CORP WAS CONVICTED OF CONSPIRACY TO OBSTRUCT JUSTICE AS WELL AS OBSTRUCTION OF JUSTICE THE CASE AROSE FROM A SECURITIESFRAUD INVESTIGATION OF MONARCH FUNDING CORP ANOTHER DEFUNCT NEW YORK SECURITIES FIRM US JUDGE ALFRED J LECHNER JR HAS ORDERED MR BERTOLI TO REPORT TO AUTHORITIES MONDAY TO BEGIN HIS PRISON TERM IN NEW YORK MR BERTOLI'S ATTORNEY RICHARD WARE LEVITT SAID MR BERTOLI PLANS TO APPEAL AND WILL ASK AN APPEALS COURT IN PHILADELPHIA TO ALLOW HIM TO REMAIN FREE ON BAIL UNTIL THE OUTCOME OF THE APPEAL IS KNOWN 9403290129 940329 ONTARIO HYDRO WORKERS SET PACT AVERTING STRIKE TORONTO ONTARIO HYDRO REACHED A LASTMINUTE AGREEMENT WITH UNION NEGOTIATORS NARROWLY AVERTING A STRIKE THAT WOULD HAVE LED TO POWER CUTS THROUGHOUT THE PROVINCE THE PREMIER OF ONTARIO BOB RAE INTERVENED LATE SUNDAY AND ORDERED BOTH SIDES TO RETURN TO THE NEGOTIATING TABLE WE WERE TOLD THAT IF WE DIDN'T RESOLVE THIS HE WOULD RESOLVE IT FOR US IN A MANNER NEITHER OF US WOULD LIKE SAID JOHN MURPHY PRESIDENT OF THE POWER WORKERS' UNION WHICH REPRESENTS THE UTILITY'S 14700 UNIONIZED EMPLOYEES DETAILS OF THE TENTATIVE AGREEMENT WEREN'T DISCLOSED BUT MR MURPHY SAID IT RESOLVES CONCERNS OVER JOB SECURITY IN THE PAST YEAR THE STATEOWNED UTILITY HAS ELIMINATED 6000 POSITIONS FACING FALLING REVENUE AND A HEAVY DEBT LOAD MAURICE STRONG ONTARIO HYDRO CHAIRMAN SAID THE NEW PACT WON'T ADD ANYTHING TO ELECTRICITY RATES WHICH REMAINED FLAT THIS YEAR AFTER SEVERAL YEARS OF HEFTY INCREASES THE UTILITY IS SEEKING A 14 RATE INCREASE FOR 1995 MR MURPHY SAID THE UNION'S BOARD WILL RECOMMEND UNANIMOUSLY THAT ITS MEMBERS APPROVE THE AGREEMENT ONTARIO HYDRO YESTERDAY BEGAN SHUTTING DOWN ITS NUCLEARGENERATING FACILITIES IN ANTICIPATION OF A STRIKE MR STRONG SAID THAT PROCESS WILL BE REVERSED AND THERE WILL BE NO DANGER OF ANY POWER SHORTFALL IN THE PROVINCE 9403290128 940329 WHO'S NEWS LAURENCE TISCH LEADS DISSENT ON MACY BOARD BY LAURA JERESKI AND PATRICK M REILLY STAFF REPORTERS OF THE WALL STREET JOURNAL LAURENCE A TISCH CHAIRMAN OF CBS INC AND LOEWS CORP IS AT THE CENTER OF A STORM AT RH MACY & CO WHERE HE IS BOTH A DIRECTOR AND AN INVESTOR IN RECENT DAYS MR TISCH 71 YEARS OLD HAS ALONG WITH THREE OTHER BOARD MEMBERS GOADED THE COMPANY'S BOARD INTO PLACING A HIGHER VALUE ON MACY THAN THE COMPANY HAD INITIALLY WANTED HE SUCCEEDED IN INCREASING THE VALUE TO 36 BILLION FROM 35 BILLION AND INCREASING THE DISTRIBUTION TO UNSECURED CREDITORS MR TISCH INSISTS HE IS SEEKING A FAIR VALUE FOR MACY BUT HIS STANCE MAY PUSH MACY'S POWERFUL SENIOR CREDITORS INTO THE ARMS OF CINCINNATIBASED FEDERATED DEPARTMENT STORES INC MACY'S UNWANTED SUITOR FEDERATED HAS ACQUIRED A STAKE VALUED AT MORE THAN 500 MILLION IN MACY'S SENIORSECURED DEBT AND ANNOUNCED ITS INTENTION TO MERGE WITH MACY CRITICS CHARGE THAT MR TISCH IS ACTING IN PART TO PROTECT HIS OWN INVESTMENT IN MACY AND THEY SAY HIS ACTIONS THREATEN THE INDEPENDENCE OF THE GIANT 135YEAROLD RETAILER HE DENIES BOTH ASSERTIONS THE INDEPENDENCE OF MACY IS NOT MY ISSUE HE SAYS I DON'T ARGUE OUT OF SELFINTEREST I'M PAST THAT POINT IN MY LIFE MR TISCH A BILLIONAIRE THROUGH HIS FAMILY'S 308 STAKE IN LOEWS WHICH IN TURN OWNS 20 OF CBS FAVORS A LOWKEY TIGHTFISTED PERSONAL STYLE DESPITE COMPENSATION FROM LOEWS AND CBS OF ABOUT 25 MILLION A YEAR MR TISCH AND HIS WIFE BILLIE DRIVE A TWODOOR CADILLAC AND PARK IT ON THE STREET IN NEW YORK WHEN OTHER DIRECTORS CLIMBED INTO WAITING CHAUFFEURDRIVEN LIMOUSINES AFTER A RECENT MACY BOARD MEETING MR TISCH SET OFF ON FOOT WAR BROKE OUT IN THE MACY BOARDROOM IN LATE FEBRUARY WHEN MR TISCH DISCOVERED THAT MACY EXECUTIVES HAD BEEN NEGOTIATING WITH TWO CREDITORS TO PUT TOGETHER A REORGANIZATION PLAN THAT PLAN WOULD HAVE TRANSFERRED CONTROL TO FIDELITY INVESTMENTS WHICH HAS A LARGE STAKE IN MACY BANK DEBT THE CHANGE IN CONTROL WOULD HAVE TRIGGERED A WINDFALL FOR MACY CHAIRMAN MYRON E ULLMAN III WHO STOOD TO RECEIVE 075 OF THE VALUE ABOVE 3 BILLION WHEN THE COMPANY CHANGED HANDSMORE THAN SOME CREDITORS WOULD HAVE RECEIVED MR ULLMAN SAYS THE BOARD WAS FULLY INFORMED OF ALL TALKS WITH CREDITORS AND THAT NO PLAN WITH FIDELITY HAD BEEN AGREED TO WHAT IRKED MR TISCH MOST WAS THE PLAN'S LOW VALUATION TOO LITTLE HE CHARGED I GREW UP WITH MACY'S HE EXPLAINS IT'S A VERY VALUABLE FRANCHISE WITH EXCELLENT PROSPECTS FOR THE FUTURE INDEED MR TISCH'S LOVE AFFAIR WITH MACY BEGAN WHEN HE JOINED THE BOARD AFTER LOEWS PARTICIPATED IN THE RETAILER'S ILLFATED 1986 LEVERAGED BUYOUT HIS FEELINGS INTENSIFIED IN DECEMBER 1990 WHEN HE AND OTHER BOARD MEMBERS CONTRIBUTED AN ADDITIONAL 160 MILLION TO HELP SHORE UP THE FALTERING RETAILER MR TISCH TOLD FRIENDS AT THE TIME THAT THIS INVESTMENT WAS ONE OF THE GREATEST DEALS I'VE EVER DONE WITHIN 13 MONTHS A SECOND 1 BILLION RESCUE ATTEMPT FAILED AND MACY FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION LOEWS'S PORTION OF THE INVESTMENT WHICH ANALYSTS ESTIMATE AT 100 MILLION WAS VIRTUALLY WORTHLESS IT'S BEEN DISASTROUS HE SAYS WITH A SHRUG MY INVESTMENT IS GONE FOR ALL INTENTS AND PURPOSES EVEN A BILLIONAIRE DOESN'T LIKE TO SEE AN INVESTMENT FAIL HIS FRIENDS SAY LARRY IS ONE OF THE SMARTEST SHREWDEST PEOPLE I'VE EVER MET SAYS INVESTMENT BANKER GILBERT HARRISON WHO HAS KNOWN MR TISCH FOR MORE THAN A DECADE HE DOESN'T LIKE LOSING IT'S A BLOW TO HIS EGO AS PART OF LOEWS'S INVESTMENTS MR TISCH CONTROLS ABOUT 52 MILLION WORTH OF JUNIOR MACY BONDS THOSE BONDS WOULD HAVE BEEN WORTHLESS UNDER THE JOINT PLAN WITH FIDELITY BUT COULD RECEIVE A SUBSTANTIAL RECOVERY UNDER MACY'S CURRENT PLAN WHEN LARRY WAS TO INVEST A BILLION IN MACY'S TO BAIL THEM OUT WE THOUGHT HE WAS THE WHITE KNIGHT SAYS BUD KONHEIM CHIEF EXECUTIVE OF NICOLE MILLER LTD A MACY SUPPLIER MY OPINION IS LARRY'S IN IT FOR LARRY NOT FOR ME MR TISCH WON'T COMMENT ON THE MACY BOARD MEETINGS THAT OCCURED AFTER HE LEARNED OF THE FIDELITY NEGOTIATIONS BUT PEOPLE WHO ATTENDED THEM SAY THE MARATHON SESSIONS THAT LED ON MARCH 22 TO THE 36 BILLION VALUATION WERE HIGHLY CONTENTIOUS MR TISCH SWUNG INTO ACTION IN MIDFEBRUARY HE DEMANDED THAT THE BOARD BE TOLD ABOUT MACY'S DEAL WITH FIDELITY ON FEBRUARY 28 THE BOARD MET TO HEAR WHAT MR ULLMAN HAD IN MIND ARTHUR NEWMAN OF THE BLACKSTONE GROUP MACY'S LEADING FINANCIAL ADVISER TOLD THE BOARD MACY WAS WORTH NO MORE THAN 35 BILLION THAT WAS 200 MILLION LESS THAN IT HAD BEEN WORTH WHEN MR TISCH FIRST INVESTED EVEN THOUGH THE COMPANY'S REVENUE HAD GROWN ALMOST 40 SINCE THEN THE COMPANY'S ONLY HOPE TO STAY INDEPENDENT THE ADVISERS TOLD THE BOARD WAS TO FORGE AN ALLIANCE WITH A POWERFUL CREDITOR SUCH AS FIDELITY INVESTMENTS FIDELITY'S MUTUAL FUNDS OWN 490 MILLION OF MACY SENIOR DEBT MR TISCH DISAGREED HE INSISTED THE FIVEMEMBER FINANCE COMMITTEE WHICH HE CHAIRS HEAR FROM MACY'S UNSECURED CREDITORS THE BONDHOLDERS AND TRADESMEN WHO LIKEWISE BELIEVE THAT THE RETAILER IS WORTH MORE THAN 35 BILLION ON MARCH 10 THE FINANCE COMMITTEE CONVENED TO HEAR FROM THE BONDHOLDERS' BANKERS MR TISCH WAS ENTRANCED BY THE PICTURE THEY PRESENTED SAY PEOPLE FAMILIAR WITH THE MEETING MACY MIGHT BE WORTH AS MUCH AS 4 BILLION MR TISCH ERUPTED ANGRY THAT MACY'S ADVISERS WERE PUSHING A LOWER FIGURE HOW CAN I BELIEVE YOUR 35 BILLION WHEN YOU WERE TELLING US THAT THE COMPANY COULD STAY IN BANKRUPTCY UNTIL 1996 HE YELLED AT MACY'S OWN ADVISERS ACCORDING TO PEOPLE WHO WERE THERE THE SENIOR CREDITORS PARADED IN A FEW DAYS LATER WHILE EATING MACY'S FAMOUS CHOCOLATELADEN MUFFINS THE BANKERS TRIED TO MAKE THE BOARD SWALLOW THEIR LOWBALL ASSESSMENT OF MACY MR TISCH WOULD HAVE NONE OF IT ACCORDING TO PEOPLE PRESENT HE SAID REPEATEDLY BUT THE BONDHOLDERS SAY MACY IS WORTH 4 BILLION THE INCONCLUSIVE GETTOGETHER SET THE STAGE FOR A SERIES OF FRACTIOUS MEETINGS THAT STARTED AT 9 PM SUNDAY MARCH 20 AND LASTED UNTIL NOON TUESDAY MR TISCH SAYS HE WON THE BACKING OF DIRECTORS HAROLD WILLIAMS LOUIS PAGE REPRESENTING HONG KONG MAGNATE SIR RUN RUN SHAW AND MALL DEVELOPER A ALFRED TAUBMAN NO ONE SEEMS HAPPY WITH THE PROPOSAL MACY PUT BEFORE CREDITORS AT A CLOSEDDOOR MEETING LAST WEEK AT THE MEETING MR ULLMAN REFUSED TO SAY WHETHER IT HAD UNANIMOUS BACKING FROM THE BOARD AND MR TISCH WINCES WHEN ASKED ABOUT IT IN THE END HE SAYS MACY WILL GO TO THE FAIREST BIDDER HE SAYS I CAN ONLY DO WHAT'S RIGHT 9403290127 940329 TRUMP PARTNER SUES DEVELOPER AND BANKERS OVER THE GRAND HYATT NEW YORK DONALD TRUMP'S PARTNER IN THE GRAND HYATT HOTEL SUED THE REAL ESTATE DEVELOPER AND HIS BANKERS OVER THEIR HANDLING OF HIS INTEREST IN THE MIDTOWN MANHATTAN HOTEL THE SUIT FILED IN FEDERAL DISTRICT COURT IN MANHATTAN AGAINST MR TRUMP CHEMICAL BANKING CORP AND BANKERS TRUST NEW YORK CORP SEEKS A DECLARATION THAT HE HAS DEFAULTED IN HIS FINANCIAL OBLIGATIONS TO THE HOTEL AND NO LONGER CAN PARTICIPATE IN ITS MANAGEMENT IN THE ALTERNATIVE IT SEEKS AN ORDER DIRECTING THE DEFENDANTS TO CONTRIBUTE THEIR SHARE OF NECESSARY RENOVATION FUNDS THE BANKS DECLINED TO COMMENT ON THE LATEST LAWSUIT THE SUIT FILED BY REFCO PROPERTIES INC AN AFFILIATE OF HYATT CORP ALSO SEEKS 100 MILLION IN COMPENSATORY DAMAGES AS WELL AS PUNITIVE DAMAGES THE SUIT ASSERTS THAT MR TRUMP TRANSFERRED HIS INTEREST IN THE HOTEL TO THE BANKS SECRETLY IN ORDER TO CONCEAL HIS FINANCIAL DIFFICULTIES SUCH A TRANSFER THE SUIT SAYS REQUIRED THE PARTNER'S APPROVAL LAST JULY MR TRUMP SUED HYATT CORP SEEKING TO HAVE THE COMPANY DISMISSED AS MANAGER OF THE HOTEL AND TO BE AWARDED EXCLUSIVE OWNERSHIP AS WELL AS MORE THAN 500 MILLION IN DAMAGES 9403290126 940329 COMMODITIES WORLD OIL PRICES PLUNGE IN WAKE OF DECISION BY OPEC TO LEAVE PRODUCTION LEVELS UNCHANGED BY JAMES TANNER AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA WORLD OIL PRICES PLUNGED AS A RESULT OF THE WEEKEND DECISION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO LEAVE PRODUCTION LEVELS UNCHANGED A PRICE DROP HAD BEEN EXPECTED ALTHOUGH THE FALL OF MORE THAN 1 A BARREL FOR SOME CRUDES YESTERDAY WAS SHARPER THAN GENERALLY ANTICIPATED BY MANY ANALYSTS AND TRADERS STILL THE DECLINES CAME AS NO SURPRISE TO MOST OF THE OIL MINISTERS WE EXPECTED A TEMPORARY DROP OF AS MUCH AS 1 OR 2 ALI AHMAD ALBAGHLI KUWAIT'S OIL MINISTER SAID IN AN INTERVIEW LATE YESTERDAY HE AND SEVERAL OTHER OIL MINISTERS MAINTAIN THAT RISING OIL DEMAND SHOULD FIRM UP PRICES LATER THIS YEAR YESTERDAY MARKED THE FIRST DAY OIL MARKETS COULD REACT TO THE MEETING THAT ENDED HERE SATURDAY NIGHT FREEZING OPEC OUTPUT AT THE CURRENT RATE OF NEARLY 25 MILLION BARRELS A DAY FOR THE REST OF THE YEAR SEVERAL OIL MINISTERS AS WELL AS MANY IN THE OIL INDUSTRY HAD WANTED OPEC OUTPUT CUTS AT LEAST FOR THE SECOND QUARTER NORMALLY THE YEAR'S LOW PERIOD FOR OIL DEMAND AMONG OIL TRADERS AS A RESULT THERE WAS THE USUAL DISAPPOINTMENT FOR THOSE WHO HAD TAKEN THE VIEW OPEC WOULD CUT PRODUCTION SAID PETER GIGNOUX SENIOR VICE PRESIDENT FOR THE SMITH BARNEY SHEARSON PETROLEUM DESK IN LONDON WHATEVER THE REASON A SELLOFF IN WORLD OIL MARKETS WAS CLEARLY UNDER WAY AS SOON AS TRADING OPENED YESTERDAY AS PRICES DROPPED THEY BROKE THROUGH PSYCHOLOGICALLY IMPORTANT LEVELS TRIGGERING FURTHER DECLINES AT THE CLOSE OF TRADING ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE FUTURES PRICES FOR NORTH SEA BRENT BLEND CRUDES WERE DOWN 65 CENTS TO 108 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE WHERE PRICES HAD JUMPED SLIGHTLY FRIDAY ON REPORTS THAT OPEC WAS DISCUSSING PRODUCTION CUTS OF AS MUCH AS 6 THE SELLOFF WAS EVEN MORE SEVERE IN HEAVY TRADING THE FUTURES PRICE FOR CRUDE OIL FOR MAY DELIVERY FELL BELOW THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 14 A BARREL AND NEAR THE FIVEYEAR LOW OF 1375 BEFORE RECOVERING SOMEWHAT THE MAY CRUDE SETTLED AT 1408 A BARREL DOWN 105 FOR THE DAY VICTOR YU AN ANALYST WITH NIKKHAH ENERGY GROUP OF REFCO INC NEW YORK SAID THAT UNTIL THE FRIDAY REPORTS THE CONSENSUS HAD BEEN THAT OPEC WOULDN'T REDUCE PRODUCTION BUT NOW THERE ARE FEARS OF ANOTHER OIL GLUT IT LOOKS LIKE OPEC WILL OVERPRODUCE ONE MILLION BARRELS A DAY IN THE SECOND QUARTER HE SAID ALTHOUGH MOST OF THE OIL MINISTERS HAD DEPARTED GENEVA BY YESTERDAY ABDULLAH BIN HAMAD ALATTIYAH QATAR'S OIL MINISTER WHO IS ALSO OPEC'S PRESIDENT WAS STILL HERE HE SAID THERE WASN'T ANY CHANCE OF OPEC CONVENING AN EMERGENCY MEETING EVEN IF OIL PRICES FELL FURTHER WHAT'S MORE HE SAID HE WOULD ATTEMPT TO KEEP THE ISSUE OF PRODUCTION QUOTAS OFF THE AGENDA AT THE OPEC MIDYEAR CONFERENCE THAT BEGINS JUNE 15 IN VIENNA IN TEHRAN MEANWHILE GHOLAMREZA AGHAZADEH THE IRANIAN OIL MINISTER BLAMED SAUDI ARABIA FOR OPEC'S UNREALISTIC DECISION SAUDI ARABIA'S OIL MINISTER HISHAM NAZER HAD MADE CLEAR FROM THE START OF THE GENEVA MEETING THAT THE KINGDOM WOULDN'T REDUCE ITS OUTPUT REGARDLESS OF WHAT THE OTHERS DID IN OTHER COMMODITY MARKETS YESTERDAY 9403290125 940329 WHO'S NEWS ARCO ELECTS BOWLIN TO SUCCEED COOK AS CHIEF EXECUTIVE BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES ATLANTIC RICHFIELD CO SAID MIKE R BOWLIN WAS ELECTED CHIEF EXECUTIVE OFFICER EFFECTIVE JULY 1 SUCCEEDING LODWRICK M COOK WHO WILL REMAIN CHAIRMAN UNTIL HIS EXPECTED RETIREMENT IN JUNE 1995 MR BOWLIN IS CURRENTLY ARCO'S PRESIDENT AND CHIEF OPERATING OFFICER AND WILL RETAIN THOSE TITLES AT THE OIL COMPANY HIS ELECTION AS CHIEF EXECUTIVE HAD BEEN EXPECTED AND REINFORCES ARCO'S INTEREST IN FOREIGN EXPLORATION AND DEVELOPMENT IN AN INTERVIEW YESTERDAY MR BOWLIN SAID THAT BROADER INTERNATIONAL DEVELOPMENTS WILL HAVE CONSIDERABLE INFLUENCE AT ARCO IN COMING MONTHS IN LIGHT OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES' FAILURE LAST WEEKEND TO AGREE ON PRODUCTION CURBS WHICH HAS DIMMED THE OUTLOOK FOR OIL PRICES AS OIL PRICES FELL YESTERDAY ON NEWS OF OPEC'S INACTION ARCO'S STOCK PRICE JOINED A BROAD DECLINE AMONG THE MAJOR OIL COMPANIES IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ARCO CLOSED AT 98 DOWN 3 OR 3 MR BOWLIN SAID ARCO IS REVIEWING ITS STRATEGIC PLANS IN LIGHT OF LOWER OIL PRICES THAT IT IS LIKELY TO CUT SOMEWHAT ITS 19 BILLION PLANNED CAPITAL SPENDING THIS YEAR AND THAT IT ALSO IS LIKELY TO HAVE FURTHER WORKFORCE REDUCTIONS BOTH IN ITS OPERATING COMPANIES AND HEADOFFICE STAFF HE DECLINED HOWEVER TO DISCUSS DETAILS SAYING THAT THE ANALYSIS PROCESS WILL LIKELY TAKE SOME MONTHS AMONG OTHER THINGS MR BOWLIN INDICATED THAT ARCO'S PROSPECTIVE PUBLIC SALE OF A 177 STAKE IN ITS NEWLY CREATED VASTAR RESOURCES INC UNIT MAY BE DELAYED AS ARCO WATCHES THE MARKET FOR SUCH STOCKS VASTAR WAS CREATED LAST YEAR AND HOLDS ARCO'S INTERESTS IN A VAST RANGE OF NATURALGAS PROPERTIES IN THE GULF OF MEXICO AND ONSHORE IN SOUTHERN STATES MR BOWLIN 51 YEARS OLD HAS DURING HIS RECENT CAREER BEEN CLOSELY LINKED WITH ARCO'S EXPANSION IN OVERSEAS PETROLEUM OPERATIONS AND STEERED THE COMPANY'S ACCUMULATION OF EXPLORATION AND PRODUCTION INTERESTS IN EUROPE AND THE FAR EAST PRIOR TO HIS MANAGEMENT OF ARCO'S INTERNATIONAL OPERATIONS MR BOWLIN CAME UP THROUGH A VARIETY OF HUMANRESOURCE AND ADMINISTRATIVE POSITIONS A ROUTE MUCH LIKE THAT TAKEN BY MR COOK MR COOK 65 WILL STEP ASIDE AFTER NEARLY NINE YEARS AS CHIEF EXECUTIVE AN OFFICE HE FIRST HELD ALONG WITH THE POST OF PRESIDENT AND THEN ADDITIONALLY AS CHAIRMAN IN FEBRUARY HE WAS NAMED CHAIRMAN OF REBUILD LA A CIVIC GROUP FORMED AFTER THE 1992 LOS ANGELES RIOTS TO CHANNEL RECONSTRUCTION EFFORTS IN THE CITY 9403290124 940329 EVEN PAGE AFTER PAGE OF NUMBERS CAN PROVIDE SOME SPICY READING BY LA WINOKUR SPECIAL TO THE WALL STREET JOURNAL AT MCCORMICK & CO IT'S ANNUAL REPORT SEASONING AGAIN THE SPARKS MD PRODUCER OF SPICES AND SEASONINGS HAS BEEN SCENTING ITS ANNUAL REPORTS WITH THE AROMA OF A DIFFERENT SPICE SINCE 1977 THIS YEAR'S OLFACTORY DELIGHT CHINESE FIVE SPICE I LOVE CHINESE FOOD CONFESSES JACK FELTON THE MCCORMICK CORPORATECOMMUNICATIONS EXECUTIVE WHO PRODUCES THE ANNUAL REPORT AND DOUBLES AS ITS MASTER SPICE CHEF MR FELTON CONTENDS THAT SPICING UP THE ANNUAL REPORT ADDS A PINCH OF FUN TO A FAIRLY BLAND PROCESS HE RECALLS THAT WHEN HE FIRST JOINED THE COMPANY IN THE MID1970S THERE WERE A NUMBER OF COMPANIES NAMED MCCORMICK INCLUDING A SECURITIES FIRM A SHIP BUILDER AND A BOURBON MAKER I DECIDED WE OUGHT TO LET PEOPLE KNOW WHICH MCCORMICK WE WERE MR FELTON SAYS AND THE BEST WAY TO DO THAT WAS TO LET THEM SMELL IT FOR THEMSELVES THE RECIPE FOR ADDING THE SCENT IS SIMPLE FIRST THE DOCUMENT'S FINANCIAL PAGES ARE PRINTED THEN THEY ARE RUN BACK THROUGH THE PRESSES THIS TIME WITH THE OLEO RESIN OR ESSENTIAL OIL FROM THE SPICE OR HERB OF CHOICE BLENDED IN VOILA A REPORT WITH A WHIFF OF DISTINCTION ABOUT 50000 COPIES OF THE REPORT ARE PRINTED EACH YEAR AND THE COST OF ADDING THE SCENT IS LESS THAN A PENNY A COPY THE AROMA HAS A DEFINITE EFFECT A PRINTER SAYS HE ONCE GAINED 10 POUNDS BECAUSE THE PRINTING OF THE REPORTS MADE HIM HUNGRY HE SENT OUT FOR FOOD ALL THE TIME SAYS MR FELTON AND ONE RECIPIENT CLAIMS THAT WHEN HE LEFT A CINNAMONFLAVORED REPORT ON HIS COFFEE TABLE HIS DOG ATE IT FINANCIAL ANALYSTS SEEM TO SAVOR THE REPORT LEHMAN BROTHERS ANALYST CAROLINE LEVY DESCRIBES IT AS DISTINCTIVE STEVEN ROCKWELL OF ALEX BROWN & SONS NOTES THAT AMID THE CLUTTER OF HIS OFFICE THE SMELL MAKES THE REPORT EASIER TO FIND MCCORMICK TESTS ALL THE SPICES AND HERBS BEFORE USING THEM IN THE REPORT AND IT'S A GOOD THING MR FELTON SAYS HE DISCOVERED THAT CERTAIN HERBS SMELL LIKE DAMP STRAW WHEN MOISTENED MORE APPEALING SCENTS THOSE DERIVED FROM CINNAMON NUTMEG VANILLA GINGER AND ALLSPICE GARLIC AND ONION HAVEN'T BEEN USED YET THEY HARDLY REPRESENT THE SWEET SMELL OF SUCCESS AND ARE RESERVED FOR WHEN MCCORMICK HAS A BAD YEAR SAYS MR FELTON THEY'LL BRING TEARS TO SHAREHOLDERS' EYES 9403290123 940329 MONDAY'S MARKETS INDUSTRIALS EASE 1238 BONDS RISE OPEC ACTION SPARKS EARLY ROUND OF SALES DOLLAR ENDS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE BATTLED BACK FROM A 46POINT DEFICIT TO FINISH WITH ONLY A MODEST LOSS BOND PRICES ROSE AND THE DOLLAR WAS MIXED SLUMPING OIL STOCKS SET THE STAGE FOR WHAT LOOKED LIKE YET ANOTHER ROUND OF BROAD SELLING IN THE STOCK MARKET NEWS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES FAILED TO REACH AN AGREEMENT TO CUT PRODUCTION SENT OIL PRICES AND OIL STOCKS TUMBLING CRUDE OIL FOR MAY DELIVERY SANK 105 A BARREL TO 1408 ON THE NEW YORK MERCANTILE EXCHANGE BUT AS THE BOND MARKET BEGAN TO REACT POSITIVELY TO THE INFLATION IMPLICATIONS OF LOWER OIL PRICES IN THE AFTERNOON STOCKS TRIMMED THEIR LOSSES ANALYSTS SAID THE 46POINT DROP IN THE INDUSTRIAL AVERAGE DURING THE DAY WAS PARTLY BECAUSE OF THE BOND MARKET'S INITIALLY LUKEWARM RESPONSE TO THE OPEC NEWS BY THE END OF THE SESSION THE TREASURY'S BENCHMARK 30YEAR BOND HAD CLIMBED NEARLY 1/2 POINT OR 5 FOR EACH 1000 FACE AMOUNT THE YIELD FELL TO 697 FROM 701 THE STOCK MARKET DECLINE FOLLOWED SUBSTANTIAL TURBULENCE LAST WEEK WHEN THE INDUSTRIAL AVERAGE FELL 120 POINTS OR 31 THE STOCK MARKET IS STILL ADJUSTING TO THE FACT THAT INTEREST RATES ARE UP TO 7 SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ WE'LL CONTINUE TO SEE SELLING PRESSURE BESIDES OILS ECONOMICALLY SENSITIVE STOCKS SLUMPED SOME ANALYSTS SAID INVESTORS WERE SELLING CYCLICALS TO CAPTURE PROFITS FROM THAT GROUP'S RECENT STRONG CLIMB BUT MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER ARGUED THAT SOME INVESTORS WERE SELLING CYCLICALS BECAUSE OF FEAR THAT RISING INTEREST RATES WILL SLOW THE ECONOMY HE SAID MONEY IS FLOWING OUT OF HIGHERPRICED CYCLICALS INTO LESSRISKY DOWNTRODDEN FOOD STOCKS REGIONAL BANKS AND INSURANCE COMPANIES THERE'S BEEN A MAJOR CHANGE IN THE PSYCHOLOGY AMONG PORTFOLIO MANAGERS MR METZ SAID INSTEAD OF TRYING TO MAXIMIZE GAINS INVESTORS ARE NOW TRYING TO MINIMIZE RISKS MR MCALINDEN NOTED THAT AMID YESTERDAY'S DECLINE UTILITY STOCKS ROSE WITH THE DOW JONES UTILITY AVERAGE GAINING 329 TO 20544 UTILITIES TEND TO LEAD THE BOND MARKET AND BONDS LEAD THE STOCK MARKET SO THIS RISE MAY BE A HARBINGER OF A TRADING BOUNCE IN THE NEXT WEEK OR TWO HE SAID WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 027 TO 11442 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2873 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1567 ISSUES FELL AND 652 ROSE BOND PRICES ROSE THE TREASURY'S 10YEAR ISSUE GAINED NEARLY 1/4 POINT OR NEARLY 250 FOR EACH 1000 FACE AMOUNT TO YIELD 660 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16715 MARKS AND 10405 YEN COMPARED WITH 16643 MARKS AND 10480 YEN FRIDAY 9403290122 940329 ABREAST OF THE MARKET OIL AND TECHNOLOGY ISSUES DEPRESS STOCK MARKET DESPITE BOND RALLY BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK TUMBLING OIL AND TECHNOLOGY ISSUES DEPRESSED THE STOCK MARKET DESPITE A RALLY IN BONDS THE LACK OF AN ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AGREEMENT DURING THE WEEKEND TO CUT OUTPUT SENT OILRELATED STOCKS TUMBLING ALONG WITH THE PRICE OF CRUDE MEANWHILE COMPUTERRELATED ISSUES ESPECIALLY THOSE LISTED ON THE NASDAQ STOCK MARKET WERE HIT BY PROFITTAKING INSPIRED BY NERVOUSNESS ABOUT THE STOCK MARKET'S SHARP LOSSES LAST WEEK OTHER RECENTLY STRONG STOCK GROUPS WERE ALSO DEPRESSED INCLUDING SOME ECONOMICALLY SENSITIVE STOCKS SUCH AS BASIC MATERIALS AND HEAVYEQUIPMENT PRODUCERS MANY OF THOSE STOCKS THOUGH FINISHED ABOVE THEIR LOWS THAT RECOVERY IN CYCLICALS HELPED LIFT THE DOW JONES INDUSTRIAL AVERAGE OFF ITS LOWS BEFORE THE CLOSE THE AVERAGE WHICH TUMBLED MORE THAN 90 POINTS THURSDAY AND FRIDAY WAS DOWN ANOTHER 45 POINTS INTRADAY YESTERDAY IT FINISHED DOWN JUST 1238 OR 033 AT 376235 ITS LOWEST LEVEL SINCE JAN 3 FOR A SECOND STRAIGHT SESSION BROADBASED INDEXES THAT TRACK MOSTLY NEW YORK STOCK EXCHANGE ISSUES ALSO ENDED WELL ABOVE THEIR LOWS BUT DECLINERS SWAMPED ADVANCERS 1567 TO 652 ON THE BIG BOARD AND THE NASDAQ COMPOSITE INDEX FINISHED SHARPLY LOWER DOWN 1095 OR 14 TO 77250 STRENGTH IN THE BOND MARKET ALSO HELPED LIFT STOCKS LATE IN THE DAY THE SLUMPING CRUDEOIL PRICES EASED INVESTORS' WORRIES ABOUT INFLATION HELPING TO PUSH THE 30YEAR TREASURY UP NEARLY 1/2 POINT ITS YIELD SLIPPED TO 697 FRIDAY IT TOPPED 7 FOR THE FIRST TIME SINCE MAY DUDLEY EPPEL SENIOR VICE PRESIDENT AND HEAD OF EQUITY TRADING AT DONALDSON LUFKIN & JENRETTE SAID A RALLY IN UTILITY STOCKS ALSO HELPED THE DOW JONES UTILITIES AVERAGE WHICH MANY PEOPLE VIEW AS A LEADING INDICATOR FOR THE OVERALL MARKET JUMPED 329 OR 163 TO 20544 IT HAS BEEN BATTERED SINCE LAST FALL BUT THERE WERE STILL ENOUGH JITTERS AROUND FROM LAST WEEK TO KEEP STOCKS UNDER WATER THROUGH THE CLOSE THE STANDARD & POOR'S 500 STOCK INDEX LOST 058 OR 013 TO 46000 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 079 OR 031 TO 25550 BOTH SET NEW LOWS FOR 1994 VOLUME ON THE BIG BOARD WAS 287310000 SHARES COMPARED WITH 249530000 SHARES ON FRIDAY THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX SLUMPED 622 OR 133 TO 46221 AMONG THE BATTERED OIL STOCKS ANADARKO PETROLEUM LOST 1 7/8 TO 46 CHEVRON DROPPED 1 1/4 TO 88 1/4 ATLANTIC RICHFIELD SLIPPED 3 TO 98 TEXACO FELL 1 1/8 TO 64 3/4 AND UNOCAL DECLINED 1/2 TO 26 1/2 CRUDE OIL FOR MAY DELIVERY DROPPED 105 TO 1408 A BARREL SHARES OF COMPANIES THAT PROVIDE SERVICES TO OIL DRILLERS ALSO FELL SCHLUMBERGER FELL 2 1/8 TO 55 BAKER HUGHES EASED 5/8 TO 18 3/4 AND DRESSER INDUSTRIES FELL 1 5/8 TO 22 3/4 GRUMMAN RALLIED 1 5/8 TO 64 7/8 AFTER THE BETHPAGE NY AEROSPACE CONCERN ESTABLISHED RULES FOR OPEN BIDDING FOR THE COMPANY NORTHROP LOS ANGELES AND MARTIN MARIETTA BETHESDA MD BOTH MADE ACQUISITION OFFERS EARLIER THIS MONTH SHARES OF NORTHROP WHICH BID 60 A SHARE LOST 1 3/8 TO 42 3/4 MARTIN MARIETTA WHICH OFFERED 55 A SHARE ADDED 3/4 TO 46 ON THE BIG BOARD COMPUTER ASSOCIATES WAS AMONG THE WEAKEST TECHNOLOGY STOCKS TUMBLING 3 1/8 TO 32 7/8 ON HEAVY VOLUME OF 41 MILLION SHARES THE ISLANDIA NY SOFTWARE COMPANY SAID IT WASN'T AWARE OF ANY NEW MATERIAL INFORMATION THAT COULD EXPLAIN THE TRADING SOME ANALYSTS CITED CONCERN ABOUT PRICING PRESSURES ON THE COMPANY'S DATABASESOFTWARE BUSINESS KLA INSTRUMENTS DROPPED 5 1/8 TO 34 5/8 ON NASDAQ FOLLOWING THE RESIGNATION OF ROBERT R ANDERSON VICE CHAIRMAN AND COFOUNDER OF THE SAN JOSE CALIF COMPANY KLA MAKES EQUIPMENT USED BY CIRCUITBOARD PRODUCERS SARA LEE INCREASED 3/4 TO 22 3/8 THE WALL STREET JOURNAL'S HEARD ON THE STREET COLUMN REPORTED THAT ANALYSTS LATELY HAVE BECOME MORE UPBEAT ABOUT THE CHICAGO FOOD AND APPAREL COMPANY'S PROSPECTS FEDERAL PAPER FELL 5/8 TO 23 3/4 AFTER THE MONTVALE NJ FORESTPRODUCTS COMPANY ESTIMATED THAT ITS FIRSTQUARTER EARNINGS WERE BELOW EXPECTATIONS IT CITED WEATHERRELATED FACTORS AND WEAKNESS IN SEGMENTS OF THE PAPERBOARD MARKET TELEFONOS DE MEXICO'S AMERICAN DEPOSITARY RECEIPTS SLIPPED 1 7/8 TO 60 5/8 ON NEW YORK STOCK EXCHANGELEADING VOLUME OF 48 MILLION OTHER MEXICAN ISSUES WERE WEAK INCLUDING GRUPO FINANCIERO SERFIN A BANKING AND BROKERAGEFIRM ISSUE DOWN 3/8 TO 25 7/8 AND GRUPO TELEVISA A BROADCASTER OFF 2 1/4 TO 54 5/8 HOME SHOPPING NETWORK ST PETERSBURG FLA GAINED 3/4 TO 13 3/4 ENTERTAINMENTINDUSTRY PUBLICATION VARIETY REPORTED THAT TED TURNER WAS EXPLORING THE POSSIBILITY OF BUYING THE COMPANY IN ORDER TO ACQUIRE 11 TELEVISION STATIONS IT OWNS CLASS A SHARES OF TURNER BROADCASTING SYSTEM ATLANTA WERE UNCHANGED AT 22 1/4 TELLABS INCREASED 2 1/4 TO 54 1/4 ON NASDAQ THE LISLE ILL COMPANY ENTERED AN AGREEMENT WITH A MAJORITYOWNED UNIT OF BOLT BERANEK & NEWMAN TO JOINTLY DEVELOP SWITCHING SYSTEMS FOR INFORMATIONSERVICE PROVIDERS SHARES OF CAMBRIDGE MASS BOLT BERANEK EASED 3/8 TO 19 STEVEN EINHORN A MARKET STRATEGIST AT GOLDMAN SACHS & CO SAID HE EXPECTS MORE LACKLUSTER STOCKMARKET ACTION IN THE NEAR TERM THE FUNDAMENTALS ARE QUITE GOOD AND STILL SUGGEST AN ONGOING BULL MARKET BUT IT WILL TAKE A LITTLE BIT OF TIME FOR THE MARKET TO SHAKE OFF THE INTERNAL DETERIORATION THAT HAS TAKEN PLACE MR EINHORN SAID 9403290121 940329 INTERNATIONAL KRAVCHUK HURT BY BIG TURNOUT IN UKRAINE VOTE BY NATALIA A FEDUSCHAK SPECIAL TO THE WALL STREET JOURNAL KIEV UKRAINE THE SURPRISINGLY HEAVY VOTER TURNOUT IN UKRAINE'S FIRST DEMOCRATIC PARLIAMENTARY ELECTIONS IS A POLITICAL SETBACK TO PRESIDENT LEONID KRAVCHUK NEARLY 75 OF UKRAINE'S 36 MILLION REGISTERED VOTERS CAST BALLOTS A MUCH HIGHER RATE THAN EXPECTED AND WELL ABOVE THE 50 NEEDED FOR A VALID VOTE THE TURNOUT WILL MAKE IT DIFFICULT FOR MR KRAVCHUK TO CARRY THROUGH ON HIS THREATS TO CANCEL THE RESULTS OR TO SEEK GREATER PRESIDENTIAL POWERS HIS OPPONENTS WERE PLEASED THIS ELECTION IS AN ABSOLUTE DEFEAT FOR KRAVCHUK AND OTHERS WHO WERE INTERESTED IN RAILROADING THEM SAID ROMAN ZVARYCH VICE PRESIDENT OF THE NATIONALIST PARTY THE CONGRESS OF UKRAINIAN NATIONALISTS THE PRESIDENT IS HOBBLED NOW NEITHER MR KRAVCHUK NOR HIS SUPPORTERS HAVE COMMENTED PUBLICLY ON THE RESULT AND THE POLITICAL SITUATION IS FAR FROM SETTLED AS PRELIMINARY RESULTS SHOW ONLY 47 DEPUTIES WON SEATS IN THE 450SEAT PARLIAMENT THE REMAINING SEATS WILL BE DECIDED IN RUNOFF ELECTIONS TO TAKE PLACE BY APRIL 10 STILL SOME OF UKRAINE'S TOP POLITICIANS WON SEATS INCLUDING THE PARLIAMENT'S POWERFUL CHAIRMAN IVAN PLIUSCH FORMER PRIME MINISTER LEONID KUCHMA AND PRODEMOCRACY RUKH LEADER VYACHESLAV CHORNOVIL THE COUNTRY'S LEADING ECONOMISTS WERE ALSO AMONG THE HANDFUL OF FIRSTROUND WINNERS INCLUDING FORMER DEPUTY PRIME MINISTERS IN CHARGE OF ECONOMIC REFORM VICTOR PYNZENYK AND VOLODYMYR LANOVIY AND THE HEAD OF PARLIAMENT'S ECONOMICREFORM COMMITTEE VOLODYMYR PYLYPCHUK RUKH LEADER MR CHORNOVIL SAID AT A NEWS CONFERENCE YESTERDAY THAT HE WAS PLEASED BY THE STRONG SHOWING OF DEMOCRATIC CANDIDATES WHO HAD WON IN THE FIRST ROUND AND THOSE WHO ARE SLATED TO PROCEED TO THE SECOND AT LEAST 14 OF THE 47 NEW DEPUTIES CAN BE CONSIDERED ADVOCATES OF REFORM TWO CANDIDATES OF THE EXTREME NATIONALIST PARTY THE UKRAINIAN NATIONAL ASSEMBLY WON SEATS WHILE CANDIDATES FROM THE COMMUNIST AND SOCIALIST PARTIES MOSTLY FROM EASTERN UKRAINE TOOK 11 SEATS MR KRAVCHUK MEANWHILE WILL NOW HAVE TO DECIDE HIS NEXT STEP HE HAD THREATENED TO VOID THE NEW PARLIAMENT IF IT WEREN'T FULLY REPRESENTATIVE MR KRAVCHUK MAY ALSO HAVE TO MAKE DECISIONS ABOUT THE DEGREE OF INDEPENDENCE HE IS WILLING TO GIVE SOME OF UKRAINE'S REGIONS EARLY RESULTS FROM AN OPINION POLL IN THE 40 ETHNIC RUSSIAN DONBAS REGION SHOW THAT ABOUT 90 OF THE VOTERS APPROVED DUAL RUSSIANUKRAINIAN CITIZENSHIP AND UKRAINE'S JOINING THE COMMONWEALTH OF INDEPENDENT STATES AS A FULL MEMBER THE POLL WAS HELD DESPITE PRESIDENTIAL BANS A SIMILAR PLEBISCITE IN CRIMEA WHICH ALSO ALLOWS FOR A CONSTITUTIONAL CHANGE THAT WOULD OPEN THE DOOR TO SECESSION OF THE PENINSULA FROM UKRAINE SHOWED A 70 APPROVAL RATE ACCORDING TO PRELIMINARY FIGURES 9403290120 940329 CARGILL OILSEEDPLANT EXPANSIONS MINNEAPOLIS CARGILL INC WILL EXPAND ITS OILSEED PROCESSING PLANTS AT SIOUX CITY IOWA AND IOWA FALLS IOWA INSTEAD OF REOPENING ITS SAVAGE MINN PLANT WHICH CLOSED FOUR YEARS AGO IN A NEWS RELEASE CARGILL SAID PROCESSING CAPACITY AT THE TWO FACILITIES WILL BE INCREASED BY ABOUT 25000 BUSHELS A DAY PERMITS ARE BEING SECURED AND CONSTRUCTION AT THE TWO SITES WILL BEGIN IN THE SPRING OF 1995 THE COMPANY SAID CARGILL IS AN INTERNATIONAL MARKETER AND PROCESSOR OF AGRICULTURAL INDUSTRIAL AND FINANCIAL COMMODITIES 9403290119 940329 BUSINESS BRIEF CRANE PLANS TO RAISE BID TO 995 MILLION FOR MARK CONTROLS NEW YORK CRANE CO STEPPED UP ITS EFFORTS TO ACQUIRE MARK CONTROLS CORP ANNOUNCING PLANS FOR A 1950ASHARE TENDER OFFER FOR THE SKOKIE ILL MAKER OF INDUSTRIAL VALVES CRANE WHICH CURRENTLY HOLDS 13 OF MARK CONTROLS SAID ITS OFFER WILL BEGIN SOON AND WILL BE SUBJECT TO USUAL CONDITIONS INCLUDING THE TENDER OF A MAJORITY OF SHARES OUTSTANDING EARLIER THIS MONTH MARK DIRECTORS HAD ENDORSED A 1775ASHARE OFFER OR ABOUT 89 MILLION FROM DANAHER CORP WASHINGTON DC BUT THE STOCK PRICE HAS RISEN AMID THE VARIOUS EXPRESSIONS OF INTEREST WILLIAM E BENDIX MARK CONTROLS' CHIEF EXECUTIVE OFFICER SAID HE WAS PLEASED WITH CRANE'S RENEWED INTEREST IN ACQUIRING THE COMPANY NOTING THAT AT THESE PRICES THE OFFERS ARE GETTING CLOSER TO A FULL VALUATION OF MARK CONTROLS HE SAID THE COMPANY'S BOARD WOULD MEET SOON TO DECIDE WHETHER TO ENDORSE THE CRANE BID CRANE PREVIOUSLY HAD OFFERED 1550 A SHARE TYCO COULDN'T BE REACHED FOR COMMENT SHARES OF MARK CONTROLS CLOSED UNCHANGED AT 1925 A SHARE YESTERDAY ON THE NASDAQ STOCK MARKET WHILE SHARES OF CRANE CLOSED AT 2775 A SHARE DOWN 50 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9403290118 940329 EASEL CORP FORMS JAPANESE UNIT BURLINGTON MASS EASEL CORP FORMED A JAPANESE SUBSIDIARY CALLED EASEL JAPAN KK IN A NEWS RELEASE EASEL SAID THE TOKYOBASED UNIT INITIALLY WILL FOCUS ON SUPPORTING INTERNATIONAL BUSINESS MACHINES CORP'S IBM JAPAN UNIT'S SALES OF EASEL'S ENTERPRISE WORKBENCH PRODUCT THE JAPANESE UNIT ALSO WILL FORM RELATIONSHIPS WITH OTHER COMPANIES ESPECIALLY JAPANESE SYSTEMSINTEGRATION CONCERNS THE COMPANY ALSO REACHED AN AGREEMENT FOR L'INTELLEGENCE HOMME MACHINE BASED IN PARIS TO BE ITS NEW DISTRIBUTOR IN FRANCE A COMPANY SPOKESMAN SAID ITS FRENCH DISTRIBUTION PACT WITH ISE FRAME WAS MUTUALLY TERMINATED 9403290117 940329 WHO'S NEWS BROOKLYN UNION GAS CO BROOKLYN UNION GAS CO NEW YORK VINCENT D ENRIGHT WAS NAMED CHIEF FINANCIAL OFFICER A POSITION PREVIOUSLY HELD BY CRAIG G MATTHEWS 51 YEARS OLD WHO CONTINUES AS EXECUTIVE VICE PRESIDENT MR ENRIGHT 50 IS ALSO A SENIOR VICE PRESIDENT AT THIS NATURAL GAS DISTRIBUTOR THE COMPANY ALSO ANNOUNCED THREE NEWLY CREATED SENIOR VICE PRESIDENT POSITIONS WILLIAM K FERAUDO 44 MARKETING GROUP LENORE PULEO 40 CUSTOMER SERVICE GROUP AND WALLACE P PARKER 44 HUMAN RESOURCES ALL POSITIONS ARE EFFECTIVE APRIL 1 9403290116 940329 LIBERTY TECHNOLOGIES' PURCHASE CONSHOHOCKEN PA LIBERTY TECHNOLOGIES INC COMPLETED ITS ACQUISITION OF INDUSTRIAL NDT CO FOR 55 MILLION LIBERTY SAID THE PURCHASE PRICE INCLUDED 2 MILLION IN CASH 317460 LIBERTY COMMON SHARES AND A CONTINGENT PAYMENT OF AS MUCH AS 500000 BASED ON INDUSTRIAL NDT'S OPERATING PERFORMANCE IN 1994 LIBERTY SAID IT EXPECTS THE ACQUISITION TO INCREASE ITS ANNUAL REVENUE BY MORE THAN 50 LIBERTY HAD 1993 REVENUE OF 186 MILLION THE PURCHASE IS NOT EXPECTED TO DILUTE PERSHARE EARNINGS IN 1994 INDUSTRIAL NDT PROVIDES TESTING INSPECTION AND PROCESSSAFETYMANAGEMENTCOMPLIANCE SERVICES FOR INDUSTRIALPROCESS INDUSTRIES INDUSTRIAL NDT HAD SALES IN 1993 OF ABOUT 11 MILLION LIBERTY SAID 9403290115 940329 WHO'S NEWS MEREDITH CORP MEREDITH CORP DES MOINES IOWA THOMAS L SLAUGHTER 39 YEARS OLD WAS NAMED VICE PRESIDENT GENERAL COUNSEL AND SECRETARY OF THE DIVERSIFIED MEDIA COMPANY WITH INTERESTS IN MAGAZINE AND BOOK PUBLISHING TELEVISION BROADCASTING RESIDENTIAL REALESTATE MARKETING AND CABLE TELEVISION MR SLAUGHTER SUCCEEDS THOMAS G FISHER 62 WHO IS RETIRING MR SLAUGHTER CURRENTLY ASSISTANT GENERAL COUNSEL ASSUMES THE POST JULY 1 9403290114 940329 LETTERS TO THE EDITOR ALORS IN REGARD TO YOUR MARCH 16 EDITORIAL LANGUAGE WARS PRIME MINISTER EDOUARD BALLADUR IS PERFECTLY RIGHT TO PROMOTE THE ELEGANCE OF THE FRENCH LANGUAGE AND IT IS AMUSING TO SEE YOU GET HYSTERICAL ABOUT IT INCIDENTALLY YOU MIGHT ADD JOURNAL TO YOUR LIST OF WORDS TO BOYCOTT IN THE US MOST FRENCH CITIZENS ARE PROFICIENT IN ENGLISH ANYWAY AND EVEN THE PURISTS WILL ALWAYS USE ENGLISH TO ASSIST HELPLESS AMERICANS WHO CONFUSE CANNES AND CAEN 9403290113 940329 COMPUTERS AMERICA ONLINE FACING NEW RIVALS MAY SOON FIND ITSELF ALL TALKED OUT BY BART ZIEGLER AND JARED SANDBERG STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PROFILE OF A CONSUMER CRAZE AMERICA FALLS IN LOVE WITH A NEW WAY OF COMMUNICATING CHATTING ELECTRONICALLY WITH STRANGERS ON TOPICS FROM POLITICS TO SOAPOPERA STARS THAT DESCRIBES THE ONLINE COMPUTER BUSINESS THIS YEAR AND THE CITIZEN'S BAND RADIO FAD OF TWO DECADES AGO WILL HISTORY REPEAT ITSELF FOR AMERICA ONLINE INC WHOSE CHAT AND OTHER COMMUNICATIONS SERVICES ARE ITS MOST POPULAR OFFERING THE ANSWER COULD MEAN THE DIFFERENCE BETWEEN CONTINUED STRATOSPHERIC GROWTH OR A DESCENT TO THE BASEMENT ALONGSIDE THE CB RADIO AND FONDUE POT IN AMERICA ONLINE THE HOTTEST OF A HANDFUL OF COMMERCIAL ONLINE SERVICES SOME INVESTORS AND WALL STREET ANALYSTS THINK THEY HAVE FOUND THE SECOND COMING OF MICROSOFT CORP WHICH MADE MILLIONAIRES OF SOME INVESTORS AND BILLIONAIRES OF TWO INSIDERS SINCE GOING PUBLIC IN MARCH 1992 AMERICA ONLINE'S SUBSCRIBER BASE HAS QUADRUPLED AND ITS STOCK HAS RISEN ALMOST EIGHTFOLD IT WAS RECENTLY VALUED AT MORE THAN 100 TIMES EARNINGS COMPARED WITH A MULTIPLE OF LESS THAN 21 TIMES REPORTED EARNINGS FOR THE STOCKS IN THE STANDARD & POOR'S 500 EVEN MICROSOFT HAS NEVER TRADED AT A MULTIPLE OF MORE THAN 48 THE LOFTY VALUATION FOR AMERICA ONLINE STUNS EVEN INDUSTRY INSIDERS ONLINE SERVICES ARE A FUNDAMENTALLY GREAT BUSINESS BUT THIS IS NUTS SAYS MARK GOLDSTEIN PRESIDENT OF A FINANCIALNEWS ONLINE SERVICE REALITY TECHNOLOGIES INC EVEN AMERICA ONLINE'S LARGEST SHAREHOLDER MICROSOFT COFOUNDER PAUL ALLEN MAY HAVE SOME DOUBTS HE SEEMED TO RATIFY AMERICA ONLINE'S FUTURE WHEN HE BEGAN BUYING SHARES TWO YEARS AGO NOW HE IS CONSIDERING SELLING HIS 18 STAKE INDUSTRY INSIDERS SAY AMERICA ONLINE'S STOCK PRICE DECLINED 3125 TO 8150 IN NASDAQ STOCK MARKET TRADING YESTERDAY ON THE NEWS OF MR ALLEN'S AMBIVALENCE AMERICA ONLINE HAS STRUCK A CHORD AMONG MANY PC USERS IT HAS 700000 SUBSCRIBERS AMONG THE FOUR MILLION CONSUMERS WHO USE ONLINE SERVICES THE HIGHFLIER OF CYBERSPACE HOWEVER WILL HAVE TO OVERCOME DAUNTING OBSTACLES TO REACH OUT TO THE REST OF THE 30 MILLION AMERICAN HOMES WITH PCS IN THE NEXT YEAR WILL COME A SLEW OF NEW SERVICES BACKED BY BIGGER NAMES AND DEEPER POCKETS INCLUDING MICROSOFT APPLE COMPUTER INC AND ZIFF COMMUNICATIONS CO CURRENT RIVALS ARE EMBRACING EASYTOUSE FEATURES WHICH HAD BEEN AMERICA ONLINE'S EDGE LOCAL CHATONLY SERVICES ARE SPRINGING UP AND A SPATE OF NEW WIRELESS NETWORKS COULD UNDERCUT AMERICA ONLINE'S ELECTRONIC MAIL SOME OBSERVERS SAY AMERICA ONLINE WILL LOSE SUBSCRIBERS TO THE GROWING POPULARITY OF THE INTERNET THE NONCOMMERCIAL INTERNATIONAL WEB OF COMPUTER NETWORKS THE INTERNET IS AN OCEAN AND THESE ONLINE SERVICES ARE ISOLATED PONDS SAYS AUTHOR JAMES GLEICK WHO IS PRESIDENT OF PIPELINE A NEW YORKBASED SERVICE FOR ACCESSING THE INTERNET PIPELINE HAS ATTRACTED REFUGEES FROM COMMERCIAL ONLINE SERVICES LIKE AMERICA ONLINE HE SAYS AND THE INTERNET'S GLOBAL ACCESS AND LOWER PRICES WILL LEAVE SERVICES LIKE AMERICA ONLINE IN TROUBLE THEIR DAYS ARE NUMBERED HE SAYS AMERICA ONLINE'S PRESIDENT AND CHIEF EXECUTIVE STEPHEN CASE SAYS HE ISN'T WORRIED WE'LL PROBABLY HAVE MILLIONS OF SUBSCRIBERS BEFORE MOST OF THE NEW COMPETITORS HIT THEIR STRIDE SAYS MR CASE 35 YEARS OLD WHO FOUNDED THE SERVICE NINE YEARS AGO IN VIENNA VA AMERICA ONLINE'S CHAT CIRCUIT WITH ELECTRONIC BULLETIN BOARDS AND ELECTRONIC MAIL LETS USERS ANONYMOUSLY FLIT AND FLIRT AND FLAME NERDSPEAK FOR GIVING ENEMIES A VERY PUBLIC VERBAL FLOGGING BUT THE INFATUATION WITH TYPING MESSAGES TO STRANGERS COULD FADE LIKE THE THREEVIDEOANIGHT HABIT OF NEW VCR OWNERS IN THE 1980S THERE'S A BURST OF ENTHUSIASM BORN OF NOVELTY THAT WILL DROP OFF PREDICTS RICHARD SHAFFER PUBLISHER OF COMPUTERLETTER AN INDUSTRY NEWSLETTER BOB CRUTCHFIELD OF ARLINGTON VA HAS PULLED THE PLUG ON AMERICA ONLINE AS WELL AS RIVAL SERVICES PRODIGY AND COMPUSERVE THE CHAT SERVICES WEREN'T THAT ENTICING I HAD ENOUGH TROUBLE SEEING WHY HAM RADIO AND CITIZEN'S BAND OPERATORS LIKE THEIR HOBBIES HE SAYS AND THEY ACTUALLY TALK TO PEOPLE EVEN IF CHAT REMAINS POPULAR LOWERCOST CHATONLY SERVICES COULD STEAL SOME AMERICA ONLINE CUSTOMERS SAYS MICHAEL MURPHY WHO PUBLISHES THE CALIFORNIA TECHNOLOGY STOCK LETTER CRAIG KOLLER OF LONG BEACH CALIF HAS ALL BUT GIVEN UP ON AMERICA ONLINE IN FAVOR OF LOCAL BULLETIN BOARDS YOU'RE DEALING WITH PEOPLE WHO ARE CLOSE TO YOU YOU CAN BUY THINGS FROM THEM OR EVEN MEET THEM HE SAYS WHILE AMERICA ONLINE TOUTS ITS HIGH GROWTH SOME EXPERTS SAY THAT IS THE WRONG GOAL USERS COMPLAINED WHEN THEY HAD TROUBLE GAINING ACCESS TO AMERICA ONLINE'S CROWDED SYSTEM OTHER MEMBERS TELL OF MISDIRECTED EMAIL MESSAGES YESTERDAY THE COMPANY SAID IT HAS BEEFED UP ITS SYSTEM TO LET 50 MORE PEOPLE TAP IN AT PEAK HOURS ALTHOUGH ANALYSTS SAY JUST 12000 TO 15000 WILL BE ABLE TO GET ONLINE AT ONCE IT ALSO ANNOUNCED AN INTERNET ACCESS SERVICE AMERICA ONLINE SHOULD PUSH CUSTOMERS TO SPEND MORE TIME ON LINE SAYS MR SHAFFER OF THE COMPUTERLETTER IT LOSES 40 OF ITS SUBSCRIBER BASE EACH YEAR AND SPENDS 40 A HEAD TO RECRUIT NEW MEMBERS MOST USERS NEVER EXCEED THEIR MINIMUM MONTHLY CHARGE OF 995 FOR FIVE HOURS BUT MR CASE SAYS AVERAGE MONTHLY REVENUE PER SUBSCRIBER HAS GROWN TO ABOUT 14 TWO YEARS AGO CUSTOMERS STAYED WITH AMERICA ONLINE FOR ABOUT 25 MONTHS ON AVERAGE NOW THEY STAY FOR 30 MONTHS THE COMPANY SAYS WHILE THE CUSTOMER TREND MAY BE PROMISING AMERICA ONLINE COULD FACE A TOUGHER TIME SIGNING UP NEW CONTENT TIME MAGAZINE IS OFFERED VIA AMERICA ONLINE BUT IS EXPLORING NEWER RIVALS THAT WOULD GIVE IT MORE CONTROL OVER THE ONSCREEN LOOK AND FEEL SAYS WALTER ISAACSON EDITOR OF TIME INC'S NEW MEDIA GROUP THE WASHINGTON POST HAS CHOSEN TO GO WITH ZIFF'S NEW SERVICE FOR SIMILAR REASONS IT ALLOWS US TO HAVE A BRANDED PRODUCT THAT IS CLEARLY OURS AND NOT SOMEONE ELSE'S SAYS DONALD K BRAZEAL EDITOR OF DIGITAL INK CO THE POST'S ONLINE SUBSIDIARY OTHER BIG MEDIA COMPANIES MAY DECIDE TO FORM THEIR OWN SERVICES REUTERS HOLDINGS PLC PROVIDES NEWS TO AMERICA ONLINE BUT IT HAS JUST ACQUIRED 75 OF REALITY TECHNOLOGIES INC AN ONLINE FINANCIAL SERVICE MR CASE COUNTERS THAT ONLINE CUSTOMERS WANT A VARIETY OF SERVICES BUNDLED TOGETHER A LA AMERICA ONLINE AND HE SAYS THE UNIFORM LOOK AND FEEL THAT BOTHERS SOME IS WHAT MAKES AMERICA ONLINE EASIER TO USE 9403290112 940329 LETTERS TO THE EDITOR WARNING RASCALS COULD BECOME TYRANTS I'M GLAD YOU PUBLISHED A LIST OF THOSE REPRESENTATIVES MINE WAS AMONG THEM WHO VOTED TO EXCLUDE THEMSELVES FROM THE GRASP OF THE ADMITTEDLY IMPRUDENT INDEPENDENT PROSECUTOR LAW EVERYONE BUT CONGRESS REVIEW & OUTLOOK MARCH 1 YOUR TITLE BRINGS TO MIND ALL OF THOSE OTHER LAWS MADE BY CONGRESS THAT APPLY NOT MERELY TO THE EXECUTIVE BRANCH BUT TO EVERYONE BUT CONGRESS MY AMERICAN POLITICS STUDENTS WERE MORE ANIMATED IN THEIR INTEREST IN PUBLIUS' DEFENSE OF THE CONSTITUTION OF 1787 WHEN HE WARNED THEM THAT A LAW THAT DID NOT BIND CONGRESS AS IT DID THE REST OF THE NATION OUGHT TO BE FEARED AS TYRANNY ITSELF IN FEDERALIST NO 57 PUBLIUS HERE JAMES MADISON CONTINUES TO ANSWER THE OBJECTION AGAINST OUR CONSTITUTION THAT THE HOUSE OF REPRESENTATIVES IS AN UNSAFE REPOSITORY FOR THE GREATEST POLITICAL AUTHORITY IN THE NATION THE FIFTH OF HIS FIVE ARGUMENTS AGAINST THIS OBJECTION RESTS ON THE PRESUMPTION THAT MEMBERS OF CONGRESS WOULD NEVER MAKE A LAW THAT DID NOT APPLY TO THEMSELVES AS TO EVERYONE ELSE HE THEN POSES THE FOLLOWING HYPOTHETICAL QUESTION IF IT BE ASKED WHAT IS TO RESTRAIN THE HOUSE OF REPRESENTATIVES FROM MAKING LEGAL DISCRIMINATIONS IN FAVOR OF THEMSELVES AND A PARTICULAR CLASS OF THE SOCIETY I ANSWER THE GENIUS OF THE WHOLE SYSTEM THE NATURE OF JUST AND CONSTITUTIONAL LAWS AND ABOVE ALL THE VIGILANT AND MANLY SPIRIT WHICH ACTUATES THE PEOPLE OF AMERICA A SPIRIT WHICH NOURISHES FREEDOM AND IN RETURN IS NOURISHED BY IT IF THIS SPIRIT SHALL EVER BE SO FAR DEBASED AS TO TOLERATE A LAW NOT OBLIGATORY ON THE LEGISLATURE AS WELL AS ON THE PEOPLE THE PEOPLE WILL BE PREPARED TO TOLERATE ANYTHING BUT LIBERTY AS YOU POINT OUT CONGRESS HAS MADE SUCH LAWS OVER AND OVER AGAIN AS YOU RAN THAT PIECE DIRECTLY UNDER A RELATED ONE CALLED PRESUMPTION OF RASCALITY PERHAPS YOU COULD HAVE CALLED IT PRESUMPTION OF TYRANNY 9403290111 940329 TURNER BROADCASTING HOME SHOPPING DISCUSS POSSIBLE BUSINESS COMBINATION BY ANITA SHARPE AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL TURNER BROADCASTING SYSTEM INC AND HOME SHOPPING NETWORK INC MET RECENTLY TO DISCUSS A POSSIBLE BUSINESS COMBINATION ACCORDING TO PEOPLE CLOSE TO BOTH COMPANIES TURNER BROADCASTING IS VERY SERIOUS ABOUT PURSUING SOME TYPE OF DEAL WITH THE NETWORK SAID ONE MEDIA EXECUTIVE FAMILIAR WITH THE CONVERSATIONS CABLEINDUSTRY EXECUTIVES SAID TURNER MAY BE PARTICULARLY INTERESTED IN 12 UHF STATIONS OPERATED AS HOME SHOPPING AFFILIATES BY SILVER KING COMMUNICATIONS A COMPANY RECENTLY SPUN OFF BY HOME SHOPPING TURNER'S POTENTIAL INTEREST WAS FIRST REPORTED BY VARIETY AN ENTERTAINMENT INDUSTRY PUBLICATION IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY HOME SHOPPING SHARES GAINED 75 CENTS TO CLOSE AT 1375 A SPOKESWOMAN AT TURNER BROADCASTING DECLINED TO COMMENT ON ANY TALKS WITH HOME SHOPPING A SPOKESMAN AT LIBERTY MEDIA CORP WHICH CONTROLS 80 OF HOME SHOPPING SAID HOME SHOPPING FROM TIME TO TIME HAS BEEN CONTACTED BY THIRD PARTIES INTERESTED IN PURSUING SOME MUTUAL VENTURE BUT HE DECLINED TO COMMENT ON ANY TALKS WITH TURNER TURNER'S BOARD IS SCHEDULED TO MEET IN MIDAPRIL TURNER WHICH OWNS SEVERAL CABLE NETWORKS INCLUDING CABLE NEWS NETWORK TNT AND TBS COULD USE THE UHF STATIONS AS A LAUNCHING PAD FOR A FIFTH NETWORK GIVEN THAT THEY REACH ABOUT 28 MILLION US HOMES IN SUCH LARGE MARKETS AS NEW YORK CHICAGO AND LOS ANGELES THOUGH THE STATIONS ARE GENERALLY LOWPOWERED THEY WERE RECENTLY GRANTED MUSTCARRY STATUS BY THE FEDERAL COMMUNICATIONS COMMISSION THAT MEANS THE STATIONS MUST BE CARRIED BY THE CABLE OPERATORS IN THEIR MARKETS SOME INDUSTRY EXECUTIVES BELIEVE THE KEY TO ANY AGREEMENT BETWEEN TURNER AND HOME SHOPPING IS JOHN MALONE WHO IS CHAIRMAN OF LIBERTY MEDIA AND PRESIDENT AND CHIEF EXECUTIVE OF TELECOMMUNICATIONS INC AS WELL AS A POWERFUL MEMBER OF TURNER'S BOARD LIBERTY MEDIA WITH PARTNERS CONTROLS HOME SHOPPING'S CHIEF COMPETITOR QVC INC MR MALONE HAS WANTED TO UNITE QVC AND HOME SHOPPING BUT HAS RUN INTO SOME REGULATORY ROADBLOCKS IF TURNER PURCHASES HOME SHOPPING IT WOULD ALLOW MR MALONE TO RETAIN SOME SAYSO OVER THE NETWORK'S OPERATION AND THROUGH TCI'S 22 INTEREST IN TURNER SOME OWNERSHIP OF IT AS WELL TURNER BROADCASTING CHAIRMAN RE TED TURNER IS ALSO SAID TO BE COMFORTABLE WITH HOME SHOPPING'S MANAGEMENT THE CHANNEL'S PRESIDENT AND CHIEF EXECUTIVE GERRY HOGAN SPENT 19 YEARS AT TURNER BROADCASTING AS ONE OF MR TURNER'S TOP LIEUTENANTS HE LEFT IN 1990 TO BECOME VICE CHAIRMAN OF WHITTLE COMMUNICATIONS LP AND WAS NAMED CHIEF EXECUTIVE OF HOME SHOPPING LAST YEAR IF TURNER ACQUIRED ALL OF HOME SHOPPING AN ELECTRONIC RETAILER IT COULD USE THE NETWORK PARTLY TO SELL MERCHANDISE SUCH AS ATLANTA BRAVES BASEBALL AND CARTOON AND MOVIE MEMORABILIA THAT IT NOW RETAILS THROUGH ITS TWO TURNER STORES TURNER OWNS THE ATLANTA BRAVES BASEBALL TEAM AS WELL AS HANNABARBERA CARTOONS AND A LARGE FILM LIBRARY CABLE PROGRAMMERS ARE THINKING A LOT MORE ABOUT RETAILING SAID LARRY HAVERTY A MONEY MANAGER WITH STATE STREET RESEARCH & MANAGEMENT INC IN BOSTON WHICH IS A LARGE SHAREHOLDER IN HOME SHOPPING 9403290110 940329 GTE CONSORTIUM WINS CELLULAR PACT FROM ARGENTINA BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A CONSORTIUM LED BY GTE CORP WAS AWARDED A MAJOR CONTRACT BY ARGENTINA GRANTING IT THE EXCLUSIVE RIGHT TO PROVIDE CELLULAR SERVICES IN SOUTHERN ARGENTINA FOR TWO YEARS GTE SAID IT EXPECTS THE CONSORTIUM TO SIGN A SIMILAR CONTRACT SOON FOR THE NORTHERN PART OF THE COUNTRY TOGETHER THE CONTRACTS WILL MAKE UP ONE OF THE LARGEST SUCH AWARDS IN SOUTH AMERICA TO DATE GTE SAID THE TWO REGIONS CONTAIN 22 MILLION PEOPLE ACCORDING TO GTE THE COMPANIA DE TELEFONOS DEL INTERIOR CONSORTIUM BASED IN BUENOS AIRES WILL INVEST UP TO 700 MILLION OVER THE NEXT TWO TO THREE YEARS TO BRING CELLULAR SERVICE TO THE ARGENTINE INTERIOR THE CONSORTIUM INCLUDES GTE WHICH OWNS A 23 STAKE AND AMERICAN TELEPHONE & TELEGRAPH CO WHICH HAS A 10 INTEREST THIS REPRESENTS A SIGNIFICANT OPPORTUNITY TO EXPAND OUR ACTIVITIES IN LATIN AMERICA A GTE SPOKESMAN SAID AMONG LATIN AMERICAN COUNTRIES THE TELECOMMUNICATIONS COMPANY CURRENTLY OFFERS CELLULAR SERVICES IN VENEZUELA AND THE DOMINICAN REPUBLIC GTE HAD 13 MILLION CELLULAR SUBSCRIBERS WORLDWIDE AT THE END OF 1993 AT&T VALUING ITS SHARE OF THE CONTRACT AT MORE THAN 250 MILLION SAID IT REPRESENTS THE LARGEST NONUS CELLULAR CONTRACT AWARDED TO ITS AT&T NETWORK SYSTEMS UNIT THE UNIT A MAKER OF NETWORK TELECOMMUNICATIONS EQUIPMENT WILL SUPPLY AT&T'S AUTOPLEX SYSTEM 1000 INCLUDING MOBILE SWITCHING CENTERS CELL SITES AND RELATED SOFTWARE THE 250 MILLION CONTRACT COULD ENGENDER ADDITIONAL EQUIPMENT SALES FOR AT&T WHEN THE NETWORK EXPANDS AT&T COULD ALSO POTENTIALLY SELL POCKETPHONES UNDER ITS BRAND NAME TO ARGENTINIANS OTHER MEMBERS OF THE CONSORTIUM INCLUDE TELEFONE SA OWNER OF A 22 STAKE WHICH IS PART OF ARGENTINIAN NEWSPAPER PUBLISHING COMPANY CLARIN GROUP TCW AMERICAS DEVELOPMENT ASSOCIATION A CLOSEDEND INVESTMENT PARTNERSHIP OF OVER 60 INVESTORS MAINLY US COMPANIES AND FINANCIAL INSTITUTIONS 5 COMPANIA AUSTRAL DE INVERSIONES CAYMAN LTD A CLOSELY HELD HOLDING COMPANY 20 AND INTELCEL SA A COMPANY CONTROLLED BY BENITO ROGGIO E HIJOS SA ONE OF ARGENTINA'S LARGEST CONSTRUCTION COMPANIES 20 THE CONSORTIUM SAID IT HAS ALREADY INVESTED OVER 200 MILLION IN THE PROJECT AND EXPECTS ITS EFFORT WILL CREATE SEVERAL HUNDRED JOBS IN THE REGION THE CONTRACT EXCLUDES THE CITY OF BUENOS AIRES CURRENTLY CELLULAR SERVICE IS PROVIDED THERE BY A CONSORTIUM LED BY ATLANTABASED BELLSOUTH CORP THE GTE SPOKESMAN SAID 9403290109 940329 FIRST CHICAGO EXPANSION CHICAGO FIRST CHICAGO CORP SAID IT RECEIVED FEDERAL RESERVE BOARD APPROVAL TO UNDERWRITE AND DISTRIBUTE CORPORATE DEBT SECURITIES THROUGH ITS FIRST CHICAGO CAPITAL MARKETS INC UNIT THE UNIT ESTABLISHED IN 1988 ALREADY UNDERWRITES GOVERNMENT SECURITIES MUNICIPAL BONDS COMMERCIAL PAPER CONSUMERRELATED ASSETBACKED SECURITIES AND CERTAIN OTHER INSTRUMENTS FIRST CHICAGO WITH 526 BILLION IN ASSETS JOINS THE GROWING NUMBER OF BANKING COMPANIES AUTHORIZED TO UNDERWRITE CORPORATE DEBT 9403290108 940329 WHO'S NEWS RH MACY REPORTS ITS RESULTS IMPROVED IN MONTH OF FEBRUARY NEW YORK RH MACY & CO REPORTED IMPROVED RESULTS FOR FEBRUARY IN PART BECAUSE OF CONTINUED OPERATING COST REDUCTIONS MACY WHICH IS OPERATING UNDER FEDERAL BANKRUPTCYCOURT PROTECTION SAID RESULTS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION AMOUNTED TO A LOSS OF 63 MILLION THAT LOSS IS LESS THAN THE COMPANY HAD ANTICIPATED AND AN IMPROVEMENT FROM A LOSS OF 125 MILLION A YEAR EARLIER MACY SAID IT TRADITIONALLY PLANS FOR FEBRUARY LOSSES BECAUSE OF SEASONAL MARKDOWNS IMPROVED MERCHANDISING AND REDUCED OPERATING COSTS NARROWED MACY'S OPERATING LOSS FOR THE MONTH TO 31 MILLION FROM 345 MILLION IN FEBRUARY 1993 EXCLUDING THE EFFECT OF CLOSED STORES INCLUDING THREE STORES CLOSED BECAUSE OF THE EFFECTS OF THE LOS ANGELES EARTHQUAKE IN JANUARY TOTAL SALES ROSE 51 FROM THE SAME MONTH A YEAR AGO SALES FROM STORES OPENED AT LEAST A YEAR INCREASED 57 FROM A YEAR AGO MYRON E ULLMAN III MACY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID MACY EXPECTS SALES GAINS TO CONTINUE AND THAT MARCH'S SAMESTORE SALES GAIN WOULD EXCEED FEBRUARY'S 57 GAIN HE SAID MACY EXPECTS TO REACH ITS EARNINGS TARGETS THROUGH SPRING 9403290107 940329 BUSINESS BRIEF FORD MOTOR CO FSERIES 19901991 PICKUPS ARE RECALLED FOR FUEL LINES FORD MOTOR CO SAID IT IS RECALLING 96300 1990 AND 1991 MODEL FSERIES PICKUP TRUCKS EQUIPPED WITH 75 LITER ENGINES TO REPLACE FAULTY FUEL LINE TUBING THE AFFECTED TRUCKS WHICH REPRESENT ABOUT 9 OF ALL FSERIES TRUCKS SOLD IN THE 199091 MODEL YEARS HAVE A SECTION OF STEEL TUBING IN THE FUEL RETURN LINE THAT COULD RUB AGAINST AN UNDERBODY WELD FLANGE OVER TIME THE FRICTION COULD PRODUCE A HOLE THAT WOULD ALLOW GASOLINE TO LEAK OUT CREATING A POTENTIAL FIRE HAZARD FORD SAID IT HAS RECEIVED ONE REPORT OF A FIRE RELATED TO THIS DEFECT BUT SAID IT IS UNAWARE OF ANY ACCIDENTS OR INJURIES RELATED TO THE CONDITION 9403290106 940329 BUSINESS BRIEF HUDSON GENERAL CORP FIRM LOSES RULING PLAINTIFF IS AWARDED 214 MILLION HUDSON GENERAL CORP SAID A STATE JURY IN NEW YORK CITY FOUND AGAINST THE COMPANY AND AWARDED THE PLAINTIFF 214 MILLION IN A CIVIL LAWSUIT FOR PERSONAL INJURIES THE GREAT NECK NY COMPANY CALLED THE AWARD TO JOSEPH SLADICK IMPROPER AND GROSSLY EXCESSIVE AND SAID IT INTENDS TO CHALLENGE THE AMOUNT NEXT MONTH IN COURT THE PLAINTIFF'S ATTORNEY WAS UNAVAILABLE FOR COMMENT THE NEGLIGENCE SUIT AROSE FROM A COLLISION ABOUT FIVE YEARS AGO BETWEEN TWO VEHICLES AT JOHN F KENNEDY AIRPORT WHERE HUDSON GENERAL PROVIDES VARIOUS SERVICES TO AIRLINES MR SLADICK A FORMER AIRLINE EMPLOYEE LOST A LEG IN THE COLLISION HUDSON GENERAL SAID 192 MILLION OF THE JURY'S AWARD IS COVERED BY INSURANCE 9403290105 940329 SMALL STOCK FOCUS RUSSELL 2000 INDEX FALLS 394 TO 26251 TECHNOLOGY AND OIL ISSUES LEAD DECLINE BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS ENDED BROADLY LOWER WITH INVESTORS STOMPING ON THE TECHNOLOGY AND OIL GROUPS MARKET WATCHERS SAID PROFITTAKERS JUMPED INTO THE FRAY EXTENDING THE WEAKNESS OF LAST THURSDAY AND FRIDAY THE RECENT BETTER PERFORMANCE OF SMALLER STOCKS COMPARED WITH LARGER ISSUES MADE THEM MORE SUSCEPTIBLE TO PULLBACKS TRADERS ADDED THE RUSSELL 2000 INDEX WHICH CHARTS THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED ON THE NASDAQ STOCK MARKET DROPPED 394 OR 148 TO END AT 26251 BUT ABOVE ITS SESSION LOW OF 26154 ON NASDAQ THE COMPOSITE INDEX FELL 1095 OR 140 TO 77250 ALTHOUGH IT HAD DROPPED TO 76724 AT ITS WEAKEST POINT BOTH INDEXES POSTED THEIR BIGGEST ONEDAY LOSSES SINCE FEB 4 WHEN STOCKS SLID SHARPLY FOLLOWING A MOVE BY THE FEDERAL RESERVE TO TIGHTEN CREDIT TRADERS SAID BOTTOMFISHING IN LATE TRADING PUSHED THE INDEXES BACK ABOVE THEIR WORST LEVELS OF THE DAY DECLINING NASDAQ ISSUES BEAT ADVANCERS 2228 TO 953 ON NASDAQ NATIONAL MARKET VOLUME OF 267048800 SHARES AND TOTAL VOLUME OF 300924000 ON FRIDAY NATIONAL MARKET VOLUME WAS 242052300 SHARES AND OVERALL TURNOVER REGISTERED 281286000 SINCE WEDNESDAY THE LAST TIME SMALLCOMPANY ISSUES CLOSED HIGHER THE RUSSELL 2000 HAS FALLEN 769 POINTS OR 285 AND THE NASDAQ COMPOSITE HAS DROPPED 25 POINTS OR 313 THE PREVIOUS WEEK THE RUSSELL 2000 CLIMBED TO THREE CONSECUTIVE RECORDS WHILE THE NASDAQ COMPOSITE REACHED TWO BACKTOBACK HIGHS THE DOW JONES INDUSTRIAL AVERAGE MEANWHILE HASN'T CLOSED AT A RECORD SINCE JAN 31 THE DOW JONES INDUSTRIALS CLOSED AT 376235 YESTERDAY LOSING ONLY 1238 OR 033 A NARROWER LOSS THAN THE 45POINT DEFICIT REACHED IN INTRADAY TRADING ON SELL PROGRAMS IN THE PAST THREE SESSIONS THE DOW JONES INDUSTRIALS HAVE GIVEN BACK 10682 OR 276 TECHNOLOGY STOCKS THE STAR PERFORMERS OF LATE PLUNGED ON PROFITTAKING LEADERS OF THE GROUP SUCH AS INTEL MICROSOFT AND SUN MICROSYSTEMS ALL DECLINED AT LEAST A POINT SMALLER SOFTWARE STOCKS REELED ON CONCERNS STEMMING FROM LAST WEEK'S ANNOUNCEMENT THAT NOVELL AND WORDPERFECT WILL MERGE AS WELL AS WORRIES ABOUT PRICING PRESSURES FOR COMPUTER ASSOCIATES INTERNATIONAL NOVELL EDGED 1/4 HIGHER TO 19 1/2 WHILE COMPUTER ASSOCIATES SLID 3 1/8 TO 32 7/8 ON THE NEW YORK STOCK EXCHANGE POWERSOFT BURLINGTON MASS DECLINED 2 3/4 TO 62 WONDERWARE IRVINE CALIF RETREATED 1 5/8 TO 17 AND MCAFEE ASSOCIATES SANTA CLARA CALIF FELL 1 1/8 TO 9 1/2 IN THE SEMICONDUCTOR SECTOR INVESTORS SOLD OFF THEIR HOLDINGS FOLLOWING SHARP FIRSTQUARTER GAINS FOR THE GROUP ADVANCED LOGIC RESEARCH IRVINE CALIF FELL 7/8 TO 6 AND CATALYST SEMICONDUCTOR SANTA CLARA CALIF SLIPPED 3/4 TO 5 7/8 AMERICA ONLINE A VIENNA VA PROVIDER OF ONLINE SERVICES PLUNGED 3 1/8 TO 81 1/2 BILLIONAIRE PAUL ALLEN WHO HOLDS AN 18 STAKE IN THE COMPANY IS THOUGHT TO BE CONSIDERING PULLING OUT OF HIS INVESTMENT THE WALL STREET JOURNAL REPORTED IN ADDITION PRUDENTIAL SECURITIES INC ANALYST MARIANNE WOLK CUT HER RATING ON AMERICA ONLINE TO HOLD FROM BUY BASED ON PRICE THE COMPANY'S SHARES SOARED TO A HIGH OF 91 1/2 LAST WEEK ON TAKEOVER SPECULATION OIL ISSUES CAME UNDER PRESSURE FOLLOWING NEWS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HAS DECIDED TO FREEZE ITS PRODUCTION CEILING AT LEAST THROUGH YEAR END MARINE DRILLING SUGARLAND TEXAS GAVE UP 3/4 TO 6 WAINOCO OIL HOUSTON DECLINED 1/4 TO 5 1/2 ON THE NEW YORK STOCK EXCHANGE AND CHILES OFFSHORE ALSO OF HOUSTON DROPPED 3/8 TO 5 1/4 ON THE AMERICAN STOCK EXCHANGE TRANSPORTATION ISSUES HAD A ROUGH SESSION MESA AIRLINES FARMINGTON NH DROPPED 1 3/8 TO 20 5/8 COMAIR HOLDINGS CINCINNATI 1 1/2 TO 22 1/8 AND MS CARRIERS MEMPHIS TENN 1 1/4 TO 24 1/4 A NOTABLE LOSER WAS MTC ELECTRONIC TECHNOLOGIES OF RICHMOND BRITISH COLUMBIA WHICH PLUMMETED 2 1/4 OR 353 TO 4 1/8 THE BOARD'S AUDIT COMMITTEE SAID IT WILL REQUEST THAT A SPECIAL COMMITTEE OF INDEPENDENT DIRECTORS BE APPOINTED TO CONDUCT AN INQUIRY INTO CERTAIN FINANCIAL DEALINGS BETWEEN CHAIRMAN MIKO LEUNG AND THE COMPANY AND PERSONS DEALING WITH THE COMPANY MTC SAID IT WILL REQUEST THAT MR LEUNG AND HIS BROTHER DIRECTOR SIT WA LEUNG RESIGN TO PERMIT THE INQUIRY BOTH MEN COULDN'T BE REACHED FOR COMMENT AMONG GAINERS CHARTER POWER SYSTEMS ADDED 1 3/8 TO 11 3/8 ON THE AMERICAN STOCK EXCHANGE THE PLYMOUTH MEETING PA COMPANY SAID IT SIGNED A FIVEYEAR CONTRACT WITH A TOTAL POTENTIAL VALUE OF ABOUT 60 MILLION TO SUPPLY AMERICAN TELEPHONE & TELEGRAPH WITH STANDBY POWER BATTERIES BASED ON FORECASTED REQUIREMENTS ON THE BIG BOARD AT&T ROSE 1/8 TO 52 3/4 HIGH VOLUME HIGH VISIBILITY TECHNOLOGY STOCKS TOOK IT THE HARDEST BUT THAT PUSHED SOME OF THE OTHERS LOWER SAID JOHN NEBENS A SENIOR ANALYST AT ARNESON KERCHEVILLE EHRENBERG & ASSOCIATES I DON'T THINK IT'S INTEREST RATES AT THIS POINT BUT INVESTORS TRYING TO RAISE A LITTLE CASH LARRY KINNEY HEAD OF OVERTHECOUNTER TRADING AT SOUNDVIEW FINANCIAL GROUP SAID SOME INVESTORS MIGHT BE DUMPING STOCKS AHEAD OF THE QUARTER'S END ON THURSDAY WE'RE GOING TO SEE ADJUSTMENTS TO PORTFOLIOS ALL WEEK THROUGH THE HOLIDAY MR KINNEY SAID THE MARKET IS CLOSED FRIDAY IN OBSERVANCE OF GOOD FRIDAY 9403290104 940329 WOMEN IN MANAGEMENT FAMILY FRIENDLY FIRMS DON'T ALWAYS PROMOTE FEMALES BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL FAMILYFRIENDLY COMPANIES AREN'T ALWAYS A WOMAN'S BEST FRIEND SOME OF THE COMPANIES WITH THE BEST FAMILYORIENTED BENEFITS SUCH AS DAY CARE FAMILY LEAVE AND FLEXTIME HAVE SOME OF THE WORST RECORDS FOR PROMOTING WOMEN ACCORDING TO A WALL STREET JOURNAL ANALYSIS OF MORE THAN 38000 COMPANIES THAT FILE JOB DATA WITH THE FEDERAL GOVERNMENT AND SOME OTHER COMPANIES THAT DON'T BOTHER WITH SUCH PROGRAMS HAVE RELATIVELY HIGH NUMBERS OF WOMEN MANAGERS THESE FINDINGS MAY SEEM SURPRISING BUT THEY REFLECT THE FACT THAT MANY AMBITIOUS WOMEN BELIEVE THAT UNWRITTEN RULES PUNISH EMPLOYEES WHO USE FAMILYFRIENDLY BENEFITS AT MANY COMPANIES THAT OFFER PARTTIME TELECOMMUTING AND JOBSHARING PROGRAMS USAGE RATES ARE AT OR BELOW 2 BECAUSE SO MANY WOMEN VIEW FAMILY POLICIES AS LETHAL TO ADVANCEMENT SAYS FRAN RODGERS PRESIDENT OF WORK/FAMILY DIRECTIONS A BOSTON CONSULTING GROUP THAT SURVEYED THE POLICIES OF 80 LARGE CORPORATIONS THE FEAR THAT FAMILY ISSUES WILL HURT THEIR CAREERS IS SO PERVASIVE ADDS FELICE SCHWARTZ A FORMER PRESIDENT OF CATALYST A NEW YORK GROUP THAT STUDIES WOMEN IN BUSINESS THAT SOME NEW MBA GRADUATES REMOVE THEIR WEDDING RINGS BEFORE INTERVIEWS SOME COMPANIES SUCH AS MONSANTO CO AND HJ HEINZ CO GET LOW MARKS FOR FAMILYFRIENDLY POLICIES BUT HAVE HIGH PERCENTAGES OF FEMALE MANAGERS FOR THEIR INDUSTRIES ACCORDING TO SOME CONSULTANTS THAT'S BECAUSE OTHER PROGRAMS SUCH AS TRAINING RECRUITMENT AND SUCCESSION PLANNING ARE MORE IMPORTANT FACTORS IN WOMEN'S ADVANCEMENT THAN FAMILY POLICIES THE CONSULTANTS ALSO BELIEVE THAT FAMILY POLICIES CAN EMPHASIZE THE DIFFERENCES BETWEEN GENDERS MAKING IT TOUGHER FOR WOMEN TO OVERCOME STEREOTYPES AND BE SERIOUSLY CONSIDERED FOR TOP JOBS IT'S A LOT HARDER FOR COMPANIES TO PROPEL WOMEN INTO MANAGEMENT THAN TO OFFER INNOVATIVE WORKFAMILY POLICIES SAYS DANA FRIEDMAN COPRESIDENT OF THE FAMILIES AND WORK INSTITUTE IN NEW YORK THE ONLY THINK TANK TO RATE COMPANIES ON THEIR FAMILY FRIENDLINESS PROMOTING WOMEN IS A LOT MORE THREATENING SHE SAYS BECAUSE UNLIKE IMPLEMENTING FAMILY POLICIES IT CAN SHIFT THE STATUS QUO OF THE CORPORATE POWER STRUCTURE AT DUPONT CO RATED ONE OF THE MOST FAMILYFRIENDLY COMPANIES IN THE COUNTRY WOMEN WHO USE FLEXTIME CAN'T RISE TO THE TOP CONTENDS DEBORAH DONOVAN 43 YEARS OLD THE COMPANY'S FIRST WOMAN LAWYER TO HAVE A CHILD THE PRESSURES OF MIDDLE MANAGEMENT ARE SUCH THAT FLEXTIME MEANS YOU DON'T HAVE TO WORK SATURDAY AFTERNOON SHE SAYS MY PET PEEVE WAS THE OCCASIONAL SUNDAY MORNING MEETING THIS IS THE FAMILYFRIENDLY COMPANY I COULDN'T EVEN ALWAYS TAKE SUNDAY MORNINGS OFF TO GO TO CHURCH MS DONOVAN WHO ESCAPED MANY OF THESE PRESSURES WHEN SHE TRANSFERRED TO SAN FRANCISCO WITH DUPONT IN 1991 SAYS THERE IS A MOMMY TRACK AT THE COMPANY FOR WOMEN WHO TRY TO BALANCE WORK AND FAMILY SHE JOINED A SUPPORT GROUP IN 1989 WITH FOUR OTHER FASTTRACK DUPONT WOMEN ALL OF WHOM WERE MOTHERS AND HAS WATCHED THEM BE DERAILED ONE AFTER THE OTHER AFTER SHE MOVED TO CALIFORNIA AND SLOWED HER HECTIC WORK PACE FROM 80 HOURS A WEEK TO 60 SHE SAYS SHE WAS NO LONGER AS VISIBLE AND WAS OVERLOOKED FOR PROMOTIONS DUPONT SAYS IT JUDGES EMPLOYEES ON THEIR WORK NOT THEIR FAMILY SITUATIONS AND NOTES THAT SOME WOMEN WITH CHILDREN HAVE BEEN PROMOTED REPEATEDLY BUT THE COMPANY SAYS IT STILL ISN'T SATISFIED WITH ITS PERCENTAGE OF FEMALE MANAGERS WHICH WAS 93 IN 1992 ONE OF THE LOWEST PERCENTAGES IN THE BASIC MATERIALS INDUSTRY ACCORDING TO THE JOURNAL ANALYSIS OF DATA FILED WITH THE LABOR DEPARTMENT FAMILYFRIENDLY POLICIES CAN HELP WOMEN ADVANCE CONSULTANTS SAY WHILE THESE POLICIES ARE PRIMARILY CREDITED WITH IMPROVING WORKERS' PRODUCTIVITY AND RETENTION THEY CAN ALSO EASE THE FIRST DECADE OF A WOMAN'S CAREER WHEN THE JUGGLING ACT BETWEEN WORK AND FAMILY CAN BE MOST COMPLICATED HALF THE PEOPLE ARE WRITTEN OFF ON FAMILY ISSUES EARLY IN THEIR CAREERS SAYS MS RODGERS WHO BELIEVES THAT FAMILYFRIENDLY POLICIES ARE NECESSARY BUT AREN'T ENOUGH BY THEMSELVES TO ALLOW WOMEN TO BREAK INTO TOP MANAGEMENT AT MONSANTO WHICH GOT A LOW MARK FROM THE FAMILIES AND WORK INSTITUTE FOR ITS FAMILY POLICIES EXECUTIVES ATTRIBUTE THE RELATIVELY HIGH NUMBER OF WOMEN MANAGERS TO SUCCESSION PLANNING AND MENTORING PROGRAMS AS WELL AS TO SPECIFIC IMPROVEMENT GOALS THE COMPANY HAD 159 WOMEN MANAGERS IN 1992 WHICH IS LOW COMPARED WITH THE NATIONAL AVERAGE BUT THE HIGHEST OF THE COMPANIES THAT THE JOURNAL ANALYZED IN THE BASIC MATERIALS INDUSTRY WE'RE NOT ANYWHERE NEAR SATISFIED SAYS NICHOLAS REDING THE COMPANY'S VICE CHAIRMAN HEINZ BY CONTRAST DOESN'T HAVE MANY FORMALIZED PROGRAMS TO HELP WOMEN ADVANCE OR TO HELP EMPLOYEES BALANCE WORK AND FAMILY YET IT STILL HAD A HIGH PERCENTAGE OF WOMEN MANAGERS 276 IN 1992 THE COMPANY WHICH ALSO GOT A LOW FAMILYFRIENDLY RATING FROM THE FAMILIES AND WORK INSTITUTE SAYS ITS LONG LEGACY OF HIRING WOMEN MAY EXPLAIN ITS LARGE NUMBER OF WOMEN MANAGERS BACK IN THE 1800S HEINZ WAS THE ONLY BIG COMPANY IN PITTSBURGH THAT HIRED MANY WOMEN GIVING THEM FACTORY JOBS AND A CHANCE TO SUPERVISE OTHER FACTORY WORKERS SAYS DEBBIE FOSTER THE GENERAL MANAGER OF CORPORATE COMMUNICATIONS SO FAR FEW COMPANIES HAVE CHANGED THEIR CULTURES ENOUGH TO CONVINCE WOMEN THAT THEY CAN TAKE ADVANTAGE OF FAMILY POLICIES WITHOUT SOME RISK TO THEIR CAREERS BUT THOSE COMPANIES THAT HAVE SUCH AS JOHNSON & JOHNSON ARE BEGINNING TO KEEP WOMEN WHO OTHERWISE WOULD HAVE QUIT WITH 279 FEMALE MANAGERS IN 1992 THE COMPANY HAD ONE OF THE HIGHEST PERCENTAGES OF FEMALE MANAGERS IN THE CONSUMER NONCYCLICAL INDUSTRY THE COMPANY WAS ABLE TO HOLD ONTO MARTHA ARNOLD NOW A BUSINESS DEVELOPMENT DIRECTOR BECAUSE OF ITS WORKFAMILY POLICIES MS ARNOLD DECIDED SHE WANTED TO WORK PARTTIME FOR NEARLY THREE YEARS AFTER THE BIRTH OF HER FIRST SON AND SHE SAYS THE COMPANY OBLIGED TELLING HER SHE WOULD PROBABLY BE PROMOTED WHEN SHE RETURNED TO WORK FULLTIME MS ARNOLD SAYS SHE WORKED THREE DAYS A WEEK UNTIL THE COMPANY'S DAYCARE CENTER OPENED WHEN SHE RETURNED SHE BEGAN HER DIRECTOR'S JOB I WOULD NOT BE AT THIS LEVEL EXCEPT FOR FAMILYFRIENDLY POLICIES SHE SAYS IF PART TIME HADN'T BEEN AVAILABLE I DOUBT I WOULD STILL BE WITH JOHNSON & JOHNSON 9403290103 940329 BUSINESS BRIEF MEMOREX TELEX NV TRADING IN ADRS IS STARTED AS BANKRUPTCY PLAN PROCEEDS MEMOREX TELEX NV SAID THAT ITS PREPACKAGED BANKRUPTCY PLAN BECAME EFFECTIVE AS SCHEDULED ON MARCH 24 UNDER THE PLAN HOLDERS OF ABOUT 850 MILLION OF SENIOR BANK AND PUBLIC DEBT WILL RECEIVE 100 OF THE DATA STORAGE COMPANY'S STOCK SHAREHOLDERS WILL RECEIVE WARRANTS THAT EVENTUALLY WOULD ALLOW THEM TO BUY UP TO 4 OF THE COMPANY'S EQUITY MEMOREX TELEX IS A DUTCH COMPANY WITH ITS EXECUTIVE OFFICES IN IRVING TEXAS THE NEW STOCK BEGAN TRADING YESTERDAY ON A WHENISSUED BASIS AS AN AMERICAN DEPOSITARY RECEIPT ON THE NASDAQ STOCK MARKET UNDER THE SYMBOL MEMYV AND CLOSED AT 825 9403290102 940329 STEPPING FORWARD LEBANESE PREMIER USES OWN RESOURCES TO SPUR REBUILDING OF BEIRUT HARIRI'S UNORTHODOX MEANS SEEM TO WORK BUT TIES TO SAUDIS STIR SUSPICION LURING OVERSEAS INVESTMENT BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL BEIRUT IT IS NEARLY SUNSET IN RAFIC HARIRI'S FORTIFIED PALACE AND THE LEBANESE PRIME MINISTER EXCUSES HIMSELF TO GET DRESSED FOR DINNER MUSTAFA RAZIAN WHO HAS WORKED FOR MR HARIRI FOR 16 YEARS SITS DOWN TO PROVIDE A FEW LAST DETAILS ON WHAT MR HARIRI CALLS THE RESTORATION OF CONFIDENCE IN LEBANON WE SOLD DOLLARS FOR THE FIRST THREE MONTHS OF THE HARIRI GOVERNMENT TO OVERCOME A WAVE OF CURRENCY SPECULATION CONFIDES THE AIDE EXPLAINING HOW MR HARIRI AFTER TAKING OFFICE USED HIS OWN CASH TO BOOST THE LEBANESE POUND BY ABOUT 30 AGAINST THE DOLLAR DID WE SELL DOLLARS WHAT DOLLARS BARKS MR HARIRI UPON HIS RETURN TO THE ROOM HE GLARES AT MR RAZIAN CHAIRMAN OF THE BILLIONAIRE'S TWO LEBANESE BANKS THE AIDE STARES AT THE FLOOR THE CURRENCY HAS STABILIZED BECAUSE I BECAME PRIME MINISTER MR HARIRI SNAPS THERE'S NO OTHER REASON CREDIT THE MAN HIS MONEY OR BOTH RAFIC HARIRI HAS LIFTED LEBANON IF NOT TO ITS FEET AT LEAST TO ITS KNEES THE CIVIL WAR BETWEEN MUSLIMS AND CHRISTIANS ENDED IN 1990 THANKS TO 40000 SYRIAN TROOPS WHO STILL HAVEN'T GONE HOME BUT THE JOB OF REBUILDING THE COUNTRY AFTER 17 YEARS OF SELFDESTRUCTION DIDN'T BEGIN IN EARNEST UNTIL THE 49YEAROLD MR HARIRI WAS APPOINTED PREMIER BY PRESIDENT ELIAS HRAWI IN OCTOBER 1992 IN WHAT MANY LEBANESE CONSIDERED THE LAST CHANCE TO SAVE THEIR COUNTRY SINCE THEN A COMBINATION OF CONSERVATIVE ECONOMIC POLICY AND A STABLE POLITICAL CLIMATE HAS LURED BACK NEARLY 2 BILLION OF LEBANESE SAVINGS THAT HAD FLED OVERSEAS LIFTING BANK DEPOSITS BY MORE THAN 20 MR HARIRI HAS LAUNCHED A 10YEAR 12 BILLION RECONSTRUCTION PROGRAM WHICH IS ATTRACTING FOREIGN INVESTMENT AND AID LAST YEAR THE CAPITAL INFLOW HELPED THE ECONOMY GROW 7 AS THE INFLATION RATE FELL BELOW 10 FOR THE FIRST TIME IN A DECADE FOR ONCE THERE'S A FUNCTIONING LEGAL FRAMEWORK FOR GOVERNMENT POLICY CONCEDES ECONOMIST KAMAL HAMDAN AN ADVISER TO TWO PREVIOUS FINANCE MINISTERS AND A TOUGH HARIRI CRITIC ON MOST ISSUES THE WORK AHEAD REMAINS ENORMOUS DESPITE THE SYRIAN PRESENCE SECURITY REMAINS DICEY AS A PAIR OF RECENT BOMBINGS TARGETING CHRISTIANS ATTEST THE COMMERCIAL HEART OF BEIRUT IS STILL AN EERIE MINELACED MOUNTAIN OF RUBBLE INHABITED BY SYRIAN LABORERS AND THE HARDIEST OF SQUATTERS FROM BOMBEDOUT VILLAGES IN THE COUNTRYSIDE BEIRUT'S WATER AND ELECTRICITY ARE SPORADIC MUCH LIKE AT THE END OF THE WAR THE SEWERLESS STREETS TURN INTO RIVERS IN THE RAIN EXCEPT WHERE BIG POTHOLES CREATE SMALL LAKES IN MUCH OF THE COUNTRY JOBS AND SHELTER ARE SCARCE EVEN IF MR HARIRI'S AMBITIOUS RECONSTRUCTION PLANS SUCCEED HE RECENTLY SIGNED A 380 MILLION CONTRACT WITH THREE EUROPEAN COMPANIES TO OVERHAUL THE NATIONAL TELEPHONE SYSTEM LEBANON WILL NEVER HAVE THE SAME PANACHE IT HAD BEFORE THE WAR THEN BEIRUT'S OPEN PORT AND LIBERAL EUROPEAN ATMOSPHERE MADE IT AN IDEAL HUB FOR DOING BUSINESS IN THE REPRESSIVE BUT AFFLUENT MIDEAST BANKS IN PARTICULAR THRIVED UNDER LEBANON'S SWISSSTYLE SECRECY LAWS TOURISM FLOURISHED AT ITS BEACHES AND MOUNTAIN RESORTS NOW LEBANESE OFFICIALS SAY THEY ARE PLANNING FOR A NEW ERA IN WHICH BEIRUT MUST VIE FOR BUSINESS WITH GROWING COMMERCIAL HUBS SUCH AS CAIRO BAHRAIN DUBAI TEL AVIV AND NICOSIA CYPRUS WE WERE PROTECTED FOR 20 YEARS BEFORE THE WAR SAYS OUSSAMA KABBANI CHIEF URBAN PLANNER FOR SOLIDERE A PRIVATE COMPANY CREATED TO REBUILD CENTRAL BEIRUT NOW WE'LL HAVE TO CREATE A WORLDCLASS PRODUCT TO COMPETE STEERING AND LARGELY BANKROLLING THE REVIVAL IS MR HARIRI A POLITICIAN WHOSE ONLY AIM HE SAYS IS TO BE THE ONE WHO MADE A DIFFERENCE AT THAT HE HAS ALREADY SUCCEEDED ALONG WITH STABILITY MR HARIRI HAS IMPOSED HIS OWN IMPERIAL BEARING ON LEBANON A REPUBLIC THAT HAS NEVER SUFFERED EMPERORS LIGHTLY HE HAS FILLED MANY SENIOR GOVERNMENT POSTS WITH EMPLOYEES OF HIS OWN CORPORATIONS HE HAS SPENT A FORTUNE BUYING LEBANESE REAL ESTATE AND DISPENSING COLLEGE SCHOLARSHIPS AND CHARITY TO THE MASSES HE HAS BECOME LEBANON'S BIGGEST MEDIA BARON WITH NEWSPAPERS RADIO STATIONS AND TWO TELEVISION NETWORKS INCLUDING HIS 50 STAKE IN STATERUN TELE LIBAN HE LAUNCHED SOLIDERE WITH HIS OWN MONEY AND WHEN VARIOUS COFFERS WERE LOW HE STEPPED IN TO PAY THE SALARIES OF UNIVERSITY PROFESSORS STREET CLEANERS EVEN STEWARDESSES OF THE STATEOWNED AIRLINE HE'S TRYING TO RECREATE THE KINGDOM OF SAUDI ARABIA SAYS OMAR DAOUK SCION OF ONE OF BEIRUT'S TRADITIONAL RULING FAMILIES BUT IT WON'T WORK THIS IS LEBANON MR HARIRI UNDERSTUDIED FOR HIS JOB WITH NO LESS THAN KING FAHD AS CROWN PRINCE IN THE MID1970S THE SAUDI RULER ADOPTED MR HARIRI THEN AN AMBITIOUS ACCOUNTANT AS THE ROYAL COURT'S FAVORITE BUILDING CONTRACTOR OVER THE NEXT 20 YEARS MR HARIRI'S OGER ENTERPRISES BUILT DOZENS OF PROJECTSFROM AIRPORTS TO PALACES HOSPITALS TO HOTELS FOR THE SAUDI ROYAL FAMILY AND OTHER PERSIAN GULF EMIRS HE AND KING FAHD BECAME CLOSE FRIENDS FOR HIS DEEDS THE SON OF POOR LEBANESE FARMERS WAS AWARDED A COVETED PRIZE FOR A FOREIGNER IN THE DESERT KINGDOM SAUDI CITIZENSHIP MR HARIRI SPEAKS ARABIC WITH A SAUDI ACCENT THE CORPORATE JET THAT RECENTLY TOOK HIM TO LONDON ON A STATE VISIT HAD SAUDI MARKINGS HIS SONS GREET THEIR FATHER BY KISSING HIS HAND COMMON IN SAUDI ARABIA BUT RARE IN LEBANON MR HARIRI'S ASSETS ESTIMATED AT 3 BILLION TO 4 BILLION PUT HIM AMONG THE WORLD'S 100 RICHEST PEOPLE ACCORDING TO FORBES MAGAZINE HE OWNS SEVERAL BANKS IN THE MIDEAST AND EUROPE A FLEET OF PRIVATE JETS AND ONE OF SAUDI ARABIA'S BIGGEST PUBLISHERS OF THE KORAN AMONG OTHER COMPANIES HE OWNS REAL ESTATE ON FOUR CONTINENTS INCLUDING HOUSTON'S 75STORY TEXAS COMMERCE TOWER WHEN HE RETURNED TO LEBANON AS PREMIER ONE OF THE CONSTRUCTION TYCOON'S FIRST MOVES AFTER STABILIZING THE CURRENCY WAS TO INSTALL HIS OWN CORPORATE EXECUTIVES IN NEARLY EVERY SENIOR GOVERNMENT POST CONNECTED TO FINANCE OR RECONSTRUCTION THE MINISTERS OF FINANCE ECONOMICS AND TELECOMMUNICATIONS ARE HARIRICOMPANY MEN SO ARE THE CHIEF OF BEIRUT'S PORT AND THE DIRECTOR OF THE COUNCIL FOR DEVELOPMENT AND RECONSTRUCTION THE JUSTICE MINISTER IS MR HARIRI'S LAWYER THE CENTRALBANK GOVERNOR IS HIS STOCKBROKER HE BUILT HIS OWN STATE WITHIN THE STATE IN THE TRENDY SADAT TOWER IN WEST BEIRUT SEVERAL DOZEN WELLGROOMED UNIVERSITY GRADUATES PECK AWAY AT PCS PRODUCING MODELS OF THE LEBANESE ECONOMY AT ONE DESK A YOUNG WOMAN CALCULATES THE EFFECT OF GOVERNMENT SALARY INCREASES ON STATE COFFERS AT ANOTHER A MAN IN A EUROPEAN SUIT AUDITS LEBANESE CUSTOMS BRANCHES THE NUMBER CRUNCHERS WORK FOR MR HARIRI'S PRIVATE CENTER FOR ECONOMIC RESEARCH AN OFFICE CONNECTED TO THE MINISTRY OF FINANCE BUT STAFFED ENTIRELY BY EMPLOYEES OF HARIRIOWNED FIRMS AT THE NEARBY MINISTRY ITSELF FEW PEOPLE HAVE ACCESS TO PHONE LINES THAT WORK LET ALONE TO COMPUTERS THEIR GOVERNMENT SALARIES START AT LESS THAN 60 OF WHAT MR HARIRI PAYS I'D NEVER WORK FOR THE MINISTRY SNIFFS ONE HARIRI ANALYST THE TWOTIER GOVERNMENT BOTHERS SOME LEBANESE AFTER A 17YEAR WAR THE FIRST THING YOU SHOULD DO IS REESTABLISH THE CREDIBILITY OF OFFICIAL INSTITUTIONS SAYS ASSAM SALAM AN ARCHITECT AND NEPHEW OF A FORMER PREMIER YOU DON'T DO THAT BY CREATING YOUR OWN PARALLEL MACHINE IN CLANCONSCIOUS LEBANON MR HARIRI ALSO IS WIDELY SUSPECTED OF TRYING TO CHANNEL THE SPOILS OF POWER TO HIS OWN RELIGIOUS COMMUNITY SUNNI MUSLIMS TO BUILD HIMSELF A POLITICAL BASE SUCH A REALIGNMENT WAS ENSHRINED IN THE 1989 PACT THAT ENDED THE CIVIL WAR AND STRENGTHENED MUSLIM POLITICIANS AT THE EXPENSE OF CHRISTIANS BUT THOUGH THE SOCALLED TAIF AGREEMENT ALSO CALLED FOR ENDING LEBANON'S SECTARIAN SYSTEM OF POWER SHARING MR HARIRI HASN'T INTRODUCED ANY SECULAR REFORMS BEYOND CLAN CONFLICT THOUGH THE RISE OF MR HARIRI AND HIS FINANCIAL MILITIA AS HIS SUBORDINATES ARE KNOWN HERE THREATENS THE STATUS OF ELITE MUSLIM AND CHRISTIAN FAMILIES WHO HAVE RUN LEBANON FOR DECADES MANY OF THEIR MEMBERS SPENT THE WAR IN EUROPE AND THE US HOPING TO RETURN SOMEDAY TO REBUILD THE COUNTRY NOW WITH THE MR HARIRI IN CONTROL BACKED BY HIS OIL FRIENDS IN THE PERSIAN GULF THOSE HOPES HAVE LARGELY BEEN DASHED MR HARIRI WHO COMES FROM SIDON IN THE IMPOVERISHED SOUTH IS CONSIDERED AN OUTSIDER IN CLUBBY BEIRUT WHO IS THIS NOUVEAURICHE HARIRI ASKS MAHMOUD SHATILA HEIR TO ONE OF BEIRUT'S BIGGEST SUNNI FAMILY FORTUNES MR SHATILA SAYS THE PREMIER RECENTLY OFFERED HIM 30 MILLION FOR HIS 26000SQUAREFOOT COMPOUND ABUTTING MR HARIRI'S PALACE IN WEST BEIRUT HE WOULDN'T PART WITH IT FOR LESS THAN 50 MILLION HOWEVER OUR FAMILY HAS BEEN RICH FOR FOUR GENERATIONS MR SHATILA SAYS ONE OF OUR GRANDFATHERS WAS LEBANON'S FIRST PRIME MINISTER FIFTEEN YEARS AGO THIS HARIRI WAS NOTHING WHAT PARTICULARLY GALLS MANY LARGE LANDOWNERS ARE MR HARIRI'S PLANS FOR REBUILDING DOWNTOWN BEIRUT SOLIDERE THE COMPANY HE FOUNDED FOR THE JOB HAS EXPROPRIATED MOST OF THE BOMBEDOUT URBAN CORE AS COMPENSATION THE AREA'S LANDLORDS AND TENANTS RECEIVED 65 OF SOLIDERE'S SHARES A STAKE VALUED BY A JUDICIAL COMMITTEE AT ROUGHLY 12 BILLION SOLIDERE'S REMAINING SHARES VALUED AT 650 MILLION WERE RECENTLY SOLD TO THE LEBANESE PUBLIC TO RAISE CASH FOR INFRASTRUCTURE THE STATE IS SUPPOSED TO REPAY SOLIDERE FOR THE INFRASTRUCTURE WORK OF THE PUBLIC SHARES MR HARIRI BOUGHT 19 MAKING HIM SOLIDERE'S BIGGEST SHAREHOLDER I CALL IT THE THEFT OF THE CENTURY SAYS MR DAOUK THE WEALTHY SCION GAZING AT HIS TWOACRE PALM AND FLOWER GARDEN IN THE HEART OF TEEMING WEST BEIRUT BEFORE THE WAR THE DAOUKS CONTROLLED ABOUT 13000 SQUARE FEET OF DOWNTOWN SPACE IN WHAT WAS A CRAZY QUILT OF SOUKS THEY ARE SLATED TO GET ABOUT 48 MILLION IN SOLIDERE SHARES FOR IT MR DAOUK SAYS IT'S WORTH 39 MILLION EVEN THOUGH DEMOLISHED IF THEY HAD LET US REBUILD IT OURSELVES 70 OF DOWNTOWN BEIRUT WOULD HAVE ALREADY BEEN BUILT BY NOW HE CONTENDS THE IRANIANBACKED HEZBOLLAH HAS ALSO COME OUT AGAINST SOLIDERE ARGUING THAT ISLAMIC LAW PROTECTS PEOPLE FROM GIVING PROPERTY AGAINST THEIR WILL THE SHIITE GROUP HAS MANY FOLLOWERS AMONG THE 15000 OR SO SQUATTERS DOWNTOWN SOLIDERE ISN'T FOR THE BENEFIT OF THE STATE BUT FOR THE BENEFIT OF RAFIC HARIRI HAJ MOHAMMED BEJAWI A HEZBOLLAH PARLIAMENTARY DEPUTY SAYS BEFORE SPEEDING OFF FROM A DOWNTOWN RALLY IN HIS MERCEDESBENZ LIMOUSINE THE SAME GRIPE AND OTHERS ARE HEARD IN CHRISTIAN EAST BEIRUT NAYLA BUSTROS SEHNOUI HAILS FROM ONE OF LEBANON'S OLDEST AND WEALTHIEST GREEK ORTHODOX FAMILIES HER GREATUNCLE WAS HANGED FOR OPPOSING OTTOMON RULE SHE AND HER HUSBAND OWNED NINE BUILDINGS IN THE SOLIDERE DISTRICT IT ISN'T THE LOSS OF PROPERTY SHE LAMENTS HOWEVER BUT THE LOSS OF LEBANON'S COSMOPOLITAN SOUL THE BEIRUT CENTER WAS THE RESULT OF DECADES AND DECADES OF LEBANESE CULTURE SHE SAYS ALL CONFESSIONS AND CLASSES WORKED AND LIVED DOWNTOWN THE PETTY FUNCTIONARIES THE TEXTILE MERCHANTS FROM TRIPOLI THE LAWYERS NOW THE LEBANESE PEOPLE WHO USED TO MIX THERE WILL NEVER BE ABLE TO GO BACK DOWNTOWN WILL BE ONLY FOR THE VERY RICH FOREIGN COMPANIES THE VERY RICH ARABS IN THE GULF AND THE VERY RICH LEBANESE ABROAD MRS SEHNOUI OFFERS A THEORY POPULAR AMONG THE LEBANESE ELITE FOR WHY SINCE AS FAR BACK AS 1983 MR HARIRI HAS COMMITTED HIMSELF AND HIS SAUDI SPONSORS TO REBUILDING DOWNTOWN BEIRUT HE WANTS TO PROVE SOMETHING TO KING FAHD NOT THAT HE'S EQUAL NOBODY IS EQUAL TO THE SAUDI KING BUT HE WANTS TO PROVE HE'S A REAL MEMBER OF THE ROYAL FAMILY AT THE SOLIDERE HEADQUARTERS THERE ISN'T MUCH ARGUMENT ABOUT WHETHER THE LANDOWNERS AND TENANTS WERE FULLY COMPENSATED THEY PROBABLY WEREN'T STAFF PLANNERS ADMIT BUT THE GREATER PUBLIC GOOD OF REBUILDING LEBANON'S ECONOMY OUTWEIGHS ANY UNFAIRNESS THEY SAY YOU FOUND FOR THE FIRST TIME IN THIS COUNTRY LITTLE GUYS BUYING SHARES IN SOLIDERE JUST TO DO SOMETHING FOR LEBANON SAYS MR KABBANI THE URBAN PLANNER MR KABBANI IS A HARIRI BELIEVER IN THE MID1980S THE 32YEAROLD BEIRUT NATIVE FLED THE WAR TO STUDY URBAN DESIGN AT HARVARD ON A SCHOLARSHIP FROM THE HARIRI FOUNDATION HE THEN WORKED IN BOSTON BEFORE GOING TO WORK FOR SOLIDERE HE HAS HELPED STEER THE PROJECT AWAY FROM ITS EARLY BLUEPRINTS OF A GRANDIOSE MODERN CITY TOWARD AN OLDER MORE LEVANTINE DESIGN WITH OPEN SPACES AND EXCAVATIONS OF BEIRUT'S 4000YEAR PAST MR HARIRI DEFINITELY WANTS TO GO DOWN IN HISTORY AS THE MAN WHO REBUILT HIS COUNTRY MR KABBANI SAYS BUT WHAT IT LOOKS LIKE IS UP TO US THE PREMIER HIMSELF OFFERS A PLAINER REASON FOR HIS ENTRY INTO THE HORNET'S NEST OF LEBANESE POLITICS I AM A SIMPLE LEBANESE GUY WHO MADE A FORTUNE IN SAUDI ARABIA AND DIDN'T FORGET HIS PEOPLE THE MORE MY WEALTH GREW THE MORE I HELPED MY COUNTRY THIS IS IN MY BLOOD 9403290099 940329 WHO'S NEWS EASTERN UTILITIES ASSOCIATES EASTERN UTILITIES ASSOCIATES BOSTON LARRY A LIEBENOW PRESIDENT AND CHIEF EXECUTIVE OFFICER OF QUAKER FABRICS CORP FALL RIVER MASS WAS NAMED A TRUSTEE OF THIS UTILITY HOLDING COMPANY HE SUCCEEDS JOHN E CONWAY WHO REACHED THE MANDATORY RETIREMENT AGE OF 70 9403290098 940329 TECHNOLOGY & HEALTH US SURGICAL EXPECTS PROFITABLE YEAR AS A RESULT OF COST CUTS NEW CAPITAL BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK US SURGICAL CORP SAID IT EXPECTS TO BE PROFITABLE THIS YEAR AS A RESULT OF CUTTING COSTS AND RAISING 200 MILLION FROM ISSUING NEW SECURITIES BUT THE NORWALK CONN MAKER OF SURGICAL EQUIPMENT SAID CONCERNS ABOUT ITS FINANCIAL CONDITION HAVE HURT SALES IN THE CURRENT QUARTER AND IN LAST YEAR'S FOURTH PERIOD AS SOME CUSTOMERS BECAME WORRIED ABOUT THE COMPANY'S VIABILITY WE REALLY THINK THIS IS OUR LAST BAD QUARTER LEON C HIRSCH CHAIRMAN AND CHIEF EXECUTIVE OFFICER TOLD ANALYSTS AND REPORTERS AT A MEETING YESTERDAY AFTER THE STOCK MARKET CLOSED WE ARE FINANCIALLY VIABLE WE HAVE FINANCIAL FLEXIBILITY WE ARE HERE TO STAY BUT HE ACKNOWLEDGED THAT JOHNSON & JOHNSON'S ETHICON UNIT THE COMPANY'S CHIEF RIVAL HAD CONTINUED TO MAKE INROADS INTO US SURGICAL'S MARKET SHARE BY CAPITALIZING ON WORRIES ABOUT THE COMPANY'S FUTURE HE DIDN'T QUANTIFY THE IMPACT BUT SAID IF I WERE A HOSPITAL ADMINISTRATOR WORRIED ABOUT A COMPANY GOING OUT OF BUSINESS I DON'T THINK I'D WANT TO DO BUSINESS WITH THEM MR HIRSCH REPEATED PREVIOUS FORECASTS THAT THE COMPANY WOULD POST A LOSS IN THE CURRENT QUARTER BUT HE SAID THE IMPACT OF ITS PREVIOUSLY ANNOUNCED RESTRUCTURING WHICH HE SAID WOULD REDUCE ANNUAL COSTS BY 155 MILLION WILL BEGIN TO TAKE FULL EFFECT ON FRIDAY AND RESULT IN A PROFIT FOR THE SECOND QUARTER ANALYSTS SAID THE COMPANY'S FINANCIAL MOVES WERE POSITIVE BUT THEY WEREN'T OPTIMISTIC ABOUT ITS NEARTERM PROSPECTS FOR RETURNING TO SIGNIFICANT GROWTH THEY NEED TO GET THE SALES ENGINE GOING AGAIN SAID KURT KRUGER ANALYST AT HAMBRECHT & QUIST THAT ISN'T HAPPENING THE COMPANY CONFIRMED THAT IT ISSUED 200 MILLION OF CONVERTIBLE PREFERRED STOCK BEARING AN ANNUAL DIVIDEND OF 976 TO RAISE ITS NEW EQUITY MR HIRSCH SAID THE PREFERRED STOCK WAS PRICED AT 110 OF THE CURRENT MARKET PRICE OF COMMON STOCK OR ABOUT 2250 WHEN CONVERTED AT THE COMPANY'S OPTION AFTER THREE YEARS OR IN ANY EVENT AFTER FOUR YEARS IT WILL ADD 89 MILLION COMMON SHARES TO THE COMPANY'S CURRENT 56 MILLION SHARES OUTSTANDING IT WILL CONVERT TO 0953 SHARE OF COMMON FOR EACH SHARE OF PREFERRED UNLESS THE COMMON STOCK IS TRADING BELOW 2150 AT THE TIME OF CONVERSION IN WHICH CASE THE CONVERSION WILL BE A FULL SHARE OF COMMON YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE US SURGICAL COMMON CLOSED AT 18375 OFF 50 CENTS ON VOLUME OF 568100 SHARES MR HIRSCH CHARACTERIZED A DESCRIPTION OF THE PREFERRED ISSUE IN THE HEARD ON THE STREET COLUMN IN THIS NEWSPAPER LAST FRIDAY AS A TOTAL DISTORTION OF THE FACTS THE COLUMN CALLED THE YIELD MOUTHWATERING FOR BIG INVESTORS WHILE IT UNDERMINED THE VALUE OF COMMON SHARES MR HIRSCH ACKNOWLEDGED THE YIELD IS MUCH HIGHER THAN MOST SIMILAR PREFERRED ISSUES BUT ARGUED THAT THE PREMIUM FOR BIG INVESTORS IS OFFSET BY PRICING IT ABOVE THE CURRENT MARKET VALUE OF COMMON SHARES THE COMPANY IS USING ALL THE PROCEEDS TO REDUCE LONGTERM DEBT TO ABOUT 300 MILLION WITH THE TRANSACTION MR HIRSCH SAID THE COMPANY IS IN COMPLIANCE WITH ALL OF ITS BANKING AND INSURANCE AGREEMENTS AND HAS UNUSED BORROWING CAPACITY OF 100 MILLION COMPLETION OF THE RESTRUCTURING PROGRAM MR HIRSCH SAID MEANS THAT THE COMPANY'A BREAKEVEN POINT IS A LITTLE OVER 900 MILLION IN ANNUAL SALES ABOVE THAT THE COMPANY WILL BE PROFITABLE AND CASH FLOW WILL BE POSITIVE HE SAID SALES IN 1993 TOTALED 104 BILLION HE SAID FIRSTQUARTER SALES ARE EXPECTED TO BE BETWEEN 221 MILLION AND 226 MILLION ABOUT EVEN WITH THE PRIOR THREE QUARTERS HE SAID HE EXPECTS SALES TO IMPROVE DURING THE NEXT THREE QUARTERS MR HIRSCH ALSO SAID THE COMPANY SIGNED A THREEYEAR CONTRACT TO SUPPLY COLUMBIA/HCA HEALTHCARE CORP WITH ENDOSCOPIC AND SURGICAL STAPLING PRODUCTS ETHICON HAS A SIMILAR CONTRACT WITH THE BIG HOSPITAL COMPANY WHICH MR HIRSCH SAID BUYS A TOTAL OF 40 MILLION OF SUCH EQUIPMENT ANNUALLY HE WOULDN'T SAY HOW MUCH OF THAT BUSINESS US SURGICAL EXPECTS TO GET 9403290097 940329 WHAT'S NEWS BUSINESS AND FINANCE JAPAN UNVEILED A PACKAGE OF MARKETOPENING INITIATIVES INTENDED TO PERSUADE THE WHITE HOUSE TO CALL OFF ITS TRADE OFFENSIVE BUT THE PLAN ISN'T LIKELY TO BRING US NEGOTIATORS BACK TO THE TABLE ANYTIME SOON TOKYO'S MEASURES ARE LARGELY A REPACKAGING OF PROPOSALS MADE IN THE FRAMEWORK TALKS THAT FAILED LAST MONTH GRUMMAN SET UP A PROCESS FOR NORTHROP AND MARTIN MARIETTA TO SUBMIT FINAL BIDS FOR THE DEFENSE COMPANY BY THURSDAY AFTERNOON BUT NORTHROP CRITICIZED THE NEW RULES AS ESSENTIALLY FORCING IT TO BID AGAINST ITSELF KODAK PLANS TO SEEK ALLIANCES WITH MAJOR COMPUTER COMPANIES AND RECRUIT NEW TALENT IN AN EFFORT TO RESTRUCTURE ITS CORE IMAGING BUSINESS TO EMPHASIZE ELECTRONIC TECHNOLOGY INSURANCE LOSSES FROM WINTER STORMS THE LOS ANGELES EARTHQUAKE AND OTHER CATASTROPHES ARE EXPECTED TO EXCEED 7 BILLION FOR THE FIRST QUARTER ONE OF THE WORST PERIODS EVER FOR US PROPERTY AND CASUALTY INSURERS WORLD OIL PRICES PLUNGED AS A RESULT OF OPEC'S DECISION THIS WEEKEND TO LEAVE PRODUCTION LEVELS UNCHANGED A PRICE DROP WAS EXPECTED ALTHOUGH THE FALL OF MORE THAN 1 A BARREL FOR SOME CRUDES WAS SHARPER THAN ANTICIPATED SLUMPING OIL STOCKS SET THE STAGE FOR WHAT LOOKED LIKE YET ANOTHER ROUND OF BROAD SELLING IN THE STOCK MARKET BUT THE DOW JONES INDUSTRIAL AVERAGE BATTLED BACK FROM A 46POINT DEFICIT TURNER BROADCASTING AND HOME SHOPPING NETWORK HAVE MET RECENTLY TO DISCUSS A POSSIBLE COMBINATION PEOPLE CLOSE TO THE COMPANIES SAID KEMPER SET UP A RICH COMPENSATION PLAN FOR ITS TOP 13 EXECUTIVES IF THEY LEAVE DUE TO A CHANGE OF CONTROL ACCORDING TO KEMPER'S PROXY STATEMENT A KEMPER SPOKESWOMAN SAID THE PLAN DIDN'T STEM FROM GE CAPITAL'S UNFRIENDLY 22 BILLION TAKEOVER BID HORSHAM AGREED TO ACQUIRE 43 OF TRIZEC A DEBTPLAGUED REALESTATE CONCERN FOR 436 MILLION THE MOVE WOULD PLACE HORSHAM A TORONTO HOLDING COMPANY IN CONTROL OF ONE OF NORTH AMERICA'S BIGGEST PORTFOLIOS OF SHOPPING CENTERS AND OFFICE BUILDINGS US SURGICAL EXPECTS A PROFIT THIS YEAR AS A RESULT OF COSTCUTTING AND A 200 MILLION NEW SECURITIES ISSUE PILGRIM GROUP IS TAKING THE UNUSUAL STEP OF REFUNDING 205000 TO ONE OF ITS MUTUAL FUNDS AT THE URGING OF FUND DIRECTORS THE REIMBURSEMENT INCLUDES A CONSULTANT'S FEE FOR WHICH THE FUND SHOULDN'T HAVE BEEN BILLED TWA NAMED THE CHIEF EXECUTIVE OF UPSTART RENO AIR TO BE ITS PRESIDENT AND CHIEF OPERATING OFFICER THE HIGH COURT SEEMED SKEPTICAL OF A CHALLENGE TO CALIFORNIA'S AGGRESSIVE TAX RULES ON MULTINATIONAL FIRMS A JURY FOUND THAT A HOSPITAL THAT VENTURED INTO OTHER HEALTHCARE BUSINESSES GAINED MONOPOLY POWER THE DECISION IS A WARNING TO OTHER HOSPITALS MAKING SIMILAR MOVES THAT THEY RISK VIOLATING ANTITRUST LAWS SIX SPECTRUM INFORMATION BOARD MEMBERS QUIT INCLUDING FORMER CHAIRMAN PETER CASERTA THE COMPANY SAID A SEVENTH MEMBER WILL SOON LEAVE THE WIRELESS COMMUNICATIONS FIRM'S STOCK ROSE 125 CENTS OR 47 TO 28125 ATLANTIC RICHFIELD SAID MIKE BOWLIN WAS ELECTED CHIEF EXECUTIVE EFFECTIVE JULY 1 SUCCEEDING LODWRICK COOK WHO WILL REMAIN CHAIRMAN UNTIL HIS EXPECTED RETIREMENT IN JUNE 1995 BOWLIN WILL RETAIN HIS TITLES AS THE OIL FIRM'S PRESIDENT AND CHIEF OPERATING OFFICER CONSTRUCTION CONTRACTS ROSE 4 LAST MONTH REFLECTING IMPROVEMENTS IN NONRESIDENTIAL BUILDING PUBLIC WORKS AND UTILITIES WHICH OFFSET DECLINES IN THE HOUSING SECTOR A SURVEY SHOWED BONDS LEHMAN BROTHERS TREASURY INDEX 525269 UP 1884 COMMODITIES OIL 1408 A BARREL OFF 105 DOW JONES FUTURES INDEX 14424 OFF 092 SPOT INDEX 13242 OFF 020 DOLLAR 10405 YEN OFF 075 16715 MARKS UP 00072 9403290096 940329 CORRECTIONS & AMPLIFICATIONS CHRIS PULA IS PRESIDENT OF THEATRICAL MARKETING AT NEW LINE CINEMA CORP A MARKETING COLUMN FRIDAY INCORRECTLY IDENTIFIED HIM AS DIRECTOR OF THEATRICAL MARKETING 9403290095 940329 THE SELLING GAME LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY TIMOTHY D SCHELLHARDT MORE COMPANIES LINK SALES PAY TO CUSTOMER SATISFACTION IBM BASES 40 OF SALESPEOPLE'S COMMISSIONS ON ITS ASSESSMENT OF CUSTOMER FULFILLMENT INDIANAPOLIS POWER & LIGHT ASKS MAJOR CUSTOMERS TO GRADE THEIR ACCOUNT REPS FROM A TO F INCENTIVE PAY HINGES ON THE RESULTS CONSULTANT HEWITT ASSOCIATES SAYS 27 OF COMPANIES USE SOME MEASURE OF CUSTOMER SERVICE IN THEIR SALESINCENTIVE PROGRAMS ANOTHER 23 WEIGH DOING SO THE DRIVE FOR QUALITY EXPLAINS THE TREND SAYS HEWITT'S TOM MOTT MOREOVER INDUSTRY CONSOLIDATION TRIMS THE NUMBER OF SALES ACCOUNTS BUT MAKES CONTENTED CUSTOMERS THAT MUCH MORE CRITICAL JUST LANDING THE SALE ISN'T EVERYTHING THAT COUNTS THESE DAYS SAYS MICHAEL SHRINER INDIANAPOLIS POWER VICE PRESIDENT OF MARKETING HOW DO SALESPEOPLE REACT THE GOOD ONES LOVE IT AND THE MARGINAL ONES ARE SCARED TO DEATH SAYS BRUCE HALE OF NATIONAL FUEL DISTRIBUTION IN BUFFALO NY TEAM SELLING CATCHES ON BUT IS SALES REALLY A TEAM SPORT A GROWING NUMBER OF COMPANIES FOLLOW THE LEAD OF DUPONT DIGITAL EQUIPMENT DATA GENERAL AND TANDEM COMPUTERS IN PUTTING SALES REPS ENGINEERS TECHNICIANS AND PRODUCTION MANAGERS ON TEAMS TO SERVE CUSTOMERS AND WIN NEW ACCOUNTS ONE PERSON CAN'T DO IT ALL ANYMORE SAYS MARK BLESSINGTON SALESPRACTICE NATIONAL DIRECTOR FOR CONSULTANT SIBSON & CO INDUSTRIES SUCH AS FURNITURE AND APPAREL ARE SLOW TO EMBRACE THE IDEA THOUGH SALESPEOPLE TYPICALLY WORK BEST AS THE LONE RANGER WITHOUT TONTO CONTENDS JACK FALVEY A LONDONDERRY NH SALESMANAGEMENT CONSULTANT WITH BIG EGOS AND LOTS OF DRIVE THE BEST SALESPEOPLE ARE COMPETITORS NOT COOPERATORS ADDS ROBERT LAVERY A NEW YORK MANAGEMENT CONSULTANT THE GENDER GAP NARROWS IN SALES PAY BUT IT IS STILL VERY WIDE MEDIAN INCOME FOR SALESWOMEN ROSE 63 FROM 1982 TO 1992 CENSUS BUREAU FIGURES SHOW WHILE GAINING ONLY 43 FOR MEN WOMEN MADE BIGGER STRIDES IN ALL MAJOR SALES OCCUPATIONS EXCEPT FOR SALARIED SALES SUPERVISORS FEMALE COMMODITIES SALES REPS RECORDED THE BIGGEST PAY GAINS 71 VS 40 THE PAY GAP IS DEFINITELY NARROWING BECAUSE A LOT OF SALESWOMEN ARE WORKING SO HARD AT IT SAYS MARILYN MOATS KENNEDY A WILMETTE ILL CAREER COUNSELOR STILL MEN IN SALES EARN ON AVERAGE 31346 WHILE WOMEN GET 17924 WHILE THE NUMBER OF SALESWOMEN EARNING MORE THAN 50000 JUMPED SEVENFOLD TO 141000 IN 1992 MEN IN THAT ELITE GROUP NUMBER 801000 THREE TIMES THE DECADEEARLIER FIGURE RETAIL SALES REMAINS A LAND OF LOW PAY FOR BOTH GENDERS WITH WOMEN EARNING 11928 AND MEN EARNING A BIT MORE ONCE YOU COULD MAKE A LIVING WORKING IN A STORE SAYS MS KENNEDY BUT YOU CAN'T ANYMORE SEX GUYS & VIDEOTAPE PLAYBOY MAGAZINE ARMS SALES REPS WITH INTERACTIVE COMPACT DISKS AND MULTIMEDIA PLAYERS TO SHOW ADVERTISERS THAT WOMEN ARE NOT OFFENDED BY THE PUBLICATION'S NUDITY THE DISKS USE SOUND AND VIDEO TO SHOW INTERVIEWS WITH 23 FEMALE SUPPORTERS OF PLAYBOY INCLUDING COLUMNIST LIZ SMITH FEMINIST AUTHOR BETTY FRIEDAN AND NEW YORK AD EXEC MARY FRITZWILSON SLOW ROAD CERTIFYING SALES PROFESSIONALS MAKES SNAILLIKE PROGRESS ONLY 800 OF 150000 US AUTO SALESPEOPLE HAVE COMPLETED THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION'S FOURPHASE CERTIFICATION PROGRAM IN THE TWO YEARS IT HAS BEEN AVAILABLE IN SEPTEMBER THE INTERNATIONAL ASSOCIATION OF SALES PROFESSIONALS BEGINS A COLLEGE PROGRAM LEADING TO AN INTERNATIONAL CERTIFIED SALES PROFESSIONAL DESIGNATION THE SALES FAX TO GET THE REQUIRED DOCTORS' WRITTEN PERMISSION TO SEND THEM DRUG SAMPLES STERITEK INC MOONACHIE NJ LAUNCHES PHYSICIANS FAX NETWORK COSPONSORED BY THE AMERICAN MEDICAL ASSOCIATION AND SPRINT THE NETWORK ENABLES SALESPEOPLE TO CONNECT WITH 66000 DOCTORS EVENTUALLY RISING TO 260000 HIGHTECH SELLING ELIMINATES SOME SALES OFFICES SALESPEOPLE CAN USE COMPUTER SOFTWARE TO PROSPECT FOR LEADS GET DATA ON CUSTOMERS AND MAKE INSTANT PRESENTATIONS CARLSON TRAVEL NETWORK IN MINNEAPOLIS CLOSES ITS FIELD OFFICES AND HAS ITS 25 SALES REPS OPERATE FROM HOME WITH LAPTOPS THE TRAVEL FRANCHISE CONCERN FIGURES IT SAVES UP TO 10000 A REP IN OVERHEAD BUT AUTOMATION IS NOT CHEAP OR WITHOUT HEADACHES EASTMAN KODAK'S OFFICEIMAGING DIVISION FIGURES HIGHTECH SELLING COSTS 14000 A SALES REP INITIALLY PLUS UP TO 5000 A YEAR TO MAINTAIN PFIZER FOUND ITS YOUNGER SALES REPS SPENT TOO MUCH TIME ON THE COMPUTER SYSTEM WHILE OLDER REPS MANY OF WHOM COULD NOT TYPE WERE RESISTANT SOME CRITICS CLAIM MANY HIGHTECH GADGETS GO UNUSED ONE HIGHTECH GIZMO SALESPEOPLE HATE IS VOICE MAIL THEY COMPLAIN THEY CAN NOT REACH PROSPECTIVE CUSTOMERS AS QUICKLY AS BEFORE THE CHECKOFF LIKE FATHER LIKE SON DAVID HILTON SR AND DAVID HILTON JR TOPSELLING NORTHWESTERN MUTUAL LIFE AGENTS TEAM UP TO MOTIVATE SALES FORCES THEIR PRESENTATION SOME THINGS NEVER CHANGE PROFITABLE TIMES MMD INC IN NEW YORK SUPPLIERS OF PARTTIME SALES REPS SEES BILLINGS QUADRUPLE IN TWO YEARS 90 OF ITS 1450 SALES REPS ARE WOMEN 9403290094 940329 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS MARCH 29APRIL 11 THIS COLLECTION OF 152 WORKS OF THE GREAT LAKES AND PLAINS TRIBES HAS RETURNED TO ITS HOME AT THE DETROIT INSTITUTE OF ARTS AFTER A NATIONWIDE TOUR CONSIDERED ONE OF THE FINEST COLLECTIONS OF NATIVE AMERICAN ART IT FEATURES HEADDRESSES MOCCASINS BEADWORK SMOKING PIPES SCULPTURES AND DRAWINGS OF THE CROW SIOUX CHIPPEWA IROQUOIS AND OTHERS RUNNING IN CONJUNCTION WITH THE CHANDLERPOHRT COLLECTION IS IMAGES OF IDENTITY AMERICAN INDIANS IN PHOTOGRAPHS 140 VINTAGE PHOTOGRAPHS DRAWN FROM PRIVATE AND PUBLIC COLLECTIONS IN MICHIGAN AS WELL AS THE MUSEUM'S PERMANENT COLLECTION MORE THAN 80 RARE OBJECTS FEATURES JEWELRY VANITY CASES WRITING INSTRUMENTS TEA SERVICES CLOCKS AND OTHER ACCESSORIES DESIGNED BY THE FRENCH JEWELRY FIRM CARTIER OVER THE LAST 150 YEARS AMONG THE PIECES ON DISPLAY WILL BE SEVERAL ART NOUVEAU OBJECTS SUCH AS A YELLOW GOLD BELT BUCKLE DECORATED IN A LOUIS XVISTYLE SCROLL PATTERN AFTER LEAVING HERE THE SHOW MOVES TO CHICAGO AND BEVERLY HILLS CALIF FLORENTINE DRAWINGS OF THE 17TH AND 18TH CENTURIES FROM THE MUSEUM OF FINE ARTS OF LILLE THE INDUSTRIAL CENTER IN NORTHERN FRANCE AMONG THEM IS A GROUP OF 14 DRAWINGS BY FILIPPO NAPOLETANO SELECTED FROM A CACHE OF 80 DRAWINGS IN THE MUSEUM'S COLLECTION THAT WERE ATTRIBUTED TO HIM ONLY IN 1989 SEVERAL DEPICT ANIMAL SKULLS HUMAN SKELETONS AND MILITARY HELMETS ATTESTING TO NAPOLETANO'S FASCINATION WITH THE BIZARRE AND THE MACABRE THIS RETROSPECTIVE OF WRIGHT'S 70YEAR CAREER IS THE MOST COMPREHENSIVE PRESENTATION OF HIS ARCHITECTURAL WORK SINCE HIS DEATH IN 1959 IT INCLUDES 350 ORIGINAL DRAWINGS MANY NEVER SHOWN BEFORE 30 SCALE MODELS FULLSCALE CONSTRUCTIONS PHOTOGRAPHS AND ARCHITECTURAL FRAGMENTS AFTER ITS NEW YORK PREMIERE IN 1954 GIAN CARLO MENOTTI'S THE SAINT OF BLEECKER STREET WON THE DRAMA CRITICS CIRCLE BEST PLAY AWARD THE MUSIC CRITIC'S BEST OPERA AWARD AND THE PULITZER PRIZE FOR MUSIC THIS REVIVAL FEATURES SOPRANO ANNALISA WINBERG AS THE INNOCENT ITALIAN GIRL ANNINA AND KIRK REDMANN AS HER PROTECTIVE BROTHER MICHELE RUSSELL PATTERSON CONDUCTS JOHN HOOMES DIRECTS LYRIC THEATRE 11TH STREET AT CENTRAL APRIL 9 11 13 AND 15 9403290093 940329 BUSINESS BRIEF ING C OLIVETTI & CO ALLIANCE WINS ITALY LICENSE FOR SECOND CELLULAR NETWORK ITALIAN CABINET MINISTERS DECIDED TO AWARD THE COUNTRY'S SECOND AND HOTLY CONTESTED CELLULAR TELEPHONE LICENSE TO OMNITEL A CONSORTIUM LED BY ING C OLIVETTI & CO AND PRONTO ITALIA A GROUP THAT INCLUDES PACIFIC TELESIS GROUP OF THE US THE LOSING GROUP WAS UNITEL WHICH INCLUDES FIAT SPA FININVEST SPA AND STATE ENERGY GIANT ENI SPA OMNITEL DECLINED TO COMMENT FIAT OFFICIALS WEREN'T AVAILABLE TO COMMENT PRECISE ESTIMATES FOR THE VALUE OF THE AWARD WEREN'T IMMEDIATELY AVAILABLE BUT ITALIAN DOMESTIC TELEPHONE OPERATOR SOCIETA PER L'ESERCIZIO DELLA TELECOMUNICAZIONI WHICH OWNS OF THE FIRST CELLULAR LICENSE AWARDED IN ITALY ALREADY HAS ABOUT 13 MILLION SUBSCRIBERS ACCORDING TO ITS RECENTLY RELEASED 1993 RESULTS 9403290092 940329 LEISURE & ARTS BOOKSHELF BIOGRAPHY AS VOYEURISM BY ROGER KIMBALL READING THE SILENT WOMAN KNOPF 208 PAGES 23 JANET MALCOLM'S NEW BOOK ABOUT THE POETS SYLVIA PLATH AND TED HUGHES I WAS OFTEN REMINDED OF A REMARK ATTRIBUTED TO ALICE ROOSEVELT LONGWORTH IF YOU DON'T HAVE ANYTHING NICE TO SAY ABOUT ANYONE COME SIT NEXT TO ME MS MALCOLM'S BOOK WHICH BEGAN LIFE AS A TWOPART ARTICLE IN THE NEW YORKER IS FULL OF UNNICE THINGS ABOUT PEOPLE THOUGH I THINK FEW ARE SUFFICIENTLY PIQUANT TO HAVE APPEALED MUCH TO ALICE LONGWORTH ONE OF MS MALCOLM'S EARLIER EXERCISES IN UNNICENESS A BOOK ABOUT THE RENEGADE PSYCHOANALYST JEFFREY MASSON EARNED HER A MUCHPUBLICIZED LIBEL SUIT WHICH SHE LOST THOUGH THE JURY COULD NOT REACH A DECISION ON DAMAGES IN THE PRESENT CASE SHE REFERS CONSPICUOUSLY TO HER NOTES AND TAPED INTERVIEWS PUTTING US ON NOTICE THAT THEY ARE ALL IN ORDER AND ONE OF THE PRINCIPALS PLATH IS BEYOND SUING HAVING COMMITTED SUICIDE IN 1963 THE DEAD AS MS MALCOLM REMINDS US CANNOT BE LIBELED BUT THEY CAN BE ABUSED AS CAN THE LIVING AND THAT TO A LARGE EXTENT IS THE REAL SUBJECT OF THIS BOOK THE SILENT WOMAN IS MS MALCOLM'S MEDITATION ON THE TASKS AND RESPONSIBILITIES OF JOURNALISTS AND BIOGRAPHERS THE LARGE LITERARY INDUSTRY THAT HAS GROWN UP AROUND PLATH SINCE THE MID'70S THERE HAVE BEEN AT LEAST FIVE BIOGRAPHIES PROVIDED THE OCCASION FOR THE SILENT WOMAN BUT THE POINT OF THE BOOK IS TO BRING US THE NEWS THAT AT BOTTOM BIOGRAPHY IS THE LITERARY FORM OF VOYEURISM INDEED MS MALCOLM PICTURES THE READER IN COLLUSION WITH THE BIOGRAPHER TIPTOEING DOWN THE CORRIDOR WITH HIM TO STAND IN FRONT OF THE BEDROOM DOOR AND TRY TO PEEP THROUGH THE KEYHOLE THIS TRANSGRESSIVE NATURE OF BIOGRAPHY IS RARELY ACKNOWLEDGED SHE SAYS BUT IT IS THE ONLY EXPLANATION FOR BIOGRAPHY'S STATUS AS A POPULAR GENRE HMMM A GLANCE AT THE DOCUMENTS THAT HAVE PILED UP AROUND PLATH MOST OF THEM ANYWAY MIGHT WELL SUGGEST THAT MS MALCOLM IS RIGHT THE GRISLY FACTS OF PLATH'S SHORT LIFE AND GRUESOME DEATH ARE CUSTOMMADE FOR LITERARY VOYEURISM CHAPTER ONE PERT NEUROTIC AMERICAN GIRL MARRIES DASHING ENGLISH POET CHAPTER TWO AFTER SIX YEARS OF MARRIAGE AND TWO CHILDREN MARRIAGE DISINTEGRATES CHAPTER THREE AND ALREADY THE LAST DEEPENING DEPRESSION A SHORT BURST OF FIERCE CREATIVITY AND THEN SUICIDE AT THE AGE OF 30 AFTER SETTING OUT MILK AND COOKIES FOR THE KIDS SHE PLACED HER HEAD INSIDE HER OVEN THE EPILOGUE WHICH IS STILL BEING WRITTEN IS POSTHUMOUS GLORY AS A GREAT POET THE TRAGEDY OF SYLVIA PLATH'S DEATH HAS A BIT OF EVERYTHING FOR ONE THING IT APPEALS DEEPLY TO THE PUBLIC'S ROMANTIC SENSE THAT POETRY SHOULD BE A RISKY EXISTENTIAL ENDEAVOR PLATH'S HANDFUL OF GOOD POEMS COLLECTED IN THE POSTHUMOUSLY PUBLISHED BOOK ARIEL WERE WRITTEN IN THE FINAL MONTHS OF HER LIFE WHEN SHE WAS STRUGGLING WITH DEPRESSION FOR MANY THE FACT THAT SHE LOST THE STRUGGLE VALIDATES THE AUTHENTICITY OF HER ENDEAVOR PLATH'S STORY ALSO APPEALS TO CERTAIN FEMINISTS WHO LIKE TO PICTURE HER AS A VICTIM OF SOCIETY OF HER UPBRINGING AND ESPECIALLY OF HER HUSBAND WHO ABANDONED HER FOR ANOTHER WOMAN THE OTHER WOMAN WAS ASSIA WEVILL WHOM MR HUGHES LATER MARRIED AND WHO ALSO COMMITTED SUICIDE BY GASSING HERSELF WITH THE EXCEPTION OF ANNE STEVENSON WHOSE BOOK BITTER FAME 1989 IS ADMIRABLY CIRCUMSPECT BIOGRAPHERS AND CRITICS HAVE SEIZED ON THE SORDID DETAILS OF THIS STORY TO MOUNT A TITILLATING MORALITY PLAY PLATH THE BLIGHTED HEROINE MR HUGHES THE MISOGYNISTIC MONSTER IT IS THIS STORY OR MYTH THAT FORMS MS MALCOLM'S SUBJECT MATTER MUCH OF THE BOOK CONSISTS OF HER ACCOUNTS OF VISITING VARIOUS OF PLATH'S BIOGRAPHERS AND CRITICS OLWYN HUGHES THE SISTER OF TED HUGHES AND UNTIL RECENTLY THE LITERARY AGENT FOR THE PLATH ESTATE IS A MAJOR CHARACTER IN THIS NARRATIVE MS MALCOLM HAS PLENTY OF SHARP CRITICISM OF MS HUGHES WHO EMERGES IN THIS BOOK AS UNUSUALLY MANIPULATIVE AND INTERFERING IN HER CAPACITY AS LITERARY AGENT BUT THEN MS MALCOLM HAS PLENTY OF CRITICISM FOR ALMOST EVERYONE SHE DECLARES HERSELF GENERALLY ON THE SIDE OF MR HUGHES AND MS STEVENSON WHICH MEANS THEY SHOULD BUY ARMOR MS MALCOLM KNEW MS STEVENSON SLIGHTLY AT COLLEGE AND ADMIRED HER FROM AFAR NOW IS AN OCCASION TO WHITTLE HER DOWN TO SIZE SEEING HER AGAIN AFTER ALL THESE YEARS WAS DEPRESSING MS STEVENSON WAS AN UPSET BESET WOUNDUP WOMAN POURING OUT HER GRIEVANCES SHE WAS ALSO MS MALCOLM TELLS US MORE THAN ONCE A RECOVERED ALCOHOLIC BETWEEN THE VISITS TO PLATH'S BIOGRAPHERS CRITICS AND ACQUAINTANCES MS MALCOLM OFFERS PHILOSOPHICAL OBSERVATIONS THAT OFTEN HAVE A DECIDEDLY FREUDIAN TANG WE ALL YEARN TOWARD THE STATE OF INANITION THE CONDITION OF HARMLESSNESS WHERE WE ARE PERFORCE LOVABLE AND FRAGILE OR LIFE OF COURSE NEVER GETS ANYONE'S ENTIRE ATTENTION OF COURSE SOMETIMES MS MALCOLM SEEMS ALARMED BY THE GOSSIPY TALKSHOW INTRUSIVENESS THAT SHE DESCRIBES SO METICULOUSLY SHE SPEAKS OF HER EFFRONTERY AND SHAME AT HER COMPLICITY IN PERPETUATING THE PLATH MYTH BUT IT WOULD SEEM TO BE A SHAME THAT SHE IS CONTENT TO LIVE WITH ABOUT HALFWAY THROUGH HER BOOK MS MALCOLM DESCRIBES THE BIOGRAPHER AS A PROFESSIONAL BLABBERMOUTH AND TATTLETALE NOT ALL BIOGRAPHERS ARE OF COURSE THE BEST BIOGRAPHERS GIVE US AN APPRECIATION OF THEIR SUBJECT'S LIFE THAT TRANSCENDS GOSSIP BUT READING SILENT WOMAN WE CERTAINLY KNOW WHAT MS MALCOLM MEANS 9403290091 940329 BUSINESS BRIEF PROCTER & GAMBLE CO LAWSUIT FILED TO STOP SALES OF SOME SHAMPOO PRODUCTS PROCTER & GAMBLE CO IS SEEKING TO FORCE RUSS KALVIN'S HAIR CARE CO TO STOP SELLING SHAMPOO USING P&G'S HEAD & SHOULDERS AND PERT PLUS NAMES IN A LAWSUIT FILED IN US DISTRICT COURT IN CINCINNATI P&G SAID RUSS KALVIN'S FALSELY DESCRIBES THE NATURE QUALITY AND CHARACTERISTICS OF CERTAIN SHAMPOOS P&G IN CINCINNATI CHARGED THE SAUGUS CALIFBASED COMPANY WITH FALSE REPRESENTATIONS TRADEMARK INFRINGEMENT FALSE DESIGNATION OF ORIGIN UNFAIR COMPETITION AND DECEPTIVE TRADE PRACTICES RUSS KALVIN'S PRODUCTS WERE SOLD UNDER LABELS SUCH AS RUSS KALVIN'S GENERIC BRAND SHAMPOO VERSION OF PROCTER & GAMBLE HEAD & SHOULDERS THE SUIT SAID RUSS KALVIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RUSS KALVIN'S INC SAID MY LABEL IS VERY CLEAR THAT THIS IS NOT A PROCTER & GAMBLE PRODUCT MR KALVIN ALSO NOTED THAT HIS COMPANY ALREADY HAS STOPPED SELLING THE PRODUCTS BECAUSE OF POOR SALES 9403290090 940329 BUSINESS BRIEF FIDELITY MEDICAL INC CONSENT ACCORD WITH SEC COVERS REVENUE RECOGNITION FIDELITY MEDICAL INC FLORHAM PARK NJ SAID IT REACHED A CONSENT AGREEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION REGARDING A SEC PROBE OF FIDELITY MEDICAL'S REVENUERECOGNITION PRACTICES THE INVESTIGATION RELATES TO THE COMPANY'S 1991 PUBLIC OFFERING AND ALLEGED VIOLATIONS OF VARIOUS PROVISIONS OF THE FEDERAL SECURITIES LAW AFTER THE COMPANY SAID IT FOUND IRREGULARITIES IN ITS REVENUERECOGNITION PRACTICES EFRAIM LANDA THE COMPANY'S FORMER CHIEF EXECUTIVE OFFICER RESIGNED IN 1992 AND THREE YEARS OF FINANCIAL REPORTS WERE RESTATED THE MAKER OF ELECTRONIC SYSTEMS FOR MEDICAL IMAGING AND CARDIODIAGNOSIS SAID IT WOULD CONSENT TO THE ENTRY OF A PERMANENT INJUNCTION AGAINST VIOLATIONS OF CERTAIN PROVISIONS OF FEDERAL SECURITIES LAWS A COMPANY SPOKESMAN SAID THE COMPANY WHICH DIDN'T ADMIT TO OR DENY THE ALLEGATIONS IS NOT REQUIRED TO PAY A FINE LAST MONTH FIDELITY MEDICAL ENTERED AN AGREEMENT TO SETTLE A PENDING RELATED SECURITIES CLASSACTION SUIT FIDELITY MEDICAL HAD REVENUE OF 57 MILLION FOR THE YEAR ENDED SEPT 30 9403290089 940329 WORLD MARKETS TOKYO SHARES RISE AND LONDON STOCKS ARE FLAT FRANKFURT PRICES JUMP 15 ON INFLATION NEWS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS STAGED MODERATE GAINS ON THIN TURNOVER MONDAY AS THE START OF TRADING FOR THE NEW FISCAL YEAR STRENGTHENED FUTURES CONTRACT PRICES LONDON SHARES ENDED ALMOST FLAT AS WEAKNESS ON WALL STREET DEFLATED ALMOST ALL OF THE SESSION'S GAINS FRANKFURT EQUITIES SURGED 15 HELPED BY STRENGTH IN GERMAN BONDS AND NEWS OF MODERATE 32 ANNUAL INCREASE IN WESTERN GERMAN CONSUMER PRICES FOR MARCH WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11442 UP 027 REFLECTING HIGHER EUROPEAN AND ASIA/PACIFIC MARKETS AND LOWER AMERICAN MARKETS TOYS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9405 UP 262 OR 29 WITH NINTENDO OF JAPAN POSTING A 7 GAIN IN ITS LOCAL CURRENCY OIL DRILLING STOCKS TRAILED AT 10876 DOWN 468 OR 41 WITH ENERGY SERVICE OF THE US SLIDING 95 IN LOCAL CURRENCY SELLING PRESSURE DIMINISHED AS ATTEMPTS BY CORPORATE AND INSTITUTIONAL INVESTORS WOUND UP THEIR EFFORTS TO UNLOAD HOLDINGS AND DRESS UP YEAREND RESULTS WITH LAST FRIDAY BEING THE FINAL DAY OF TRADING FOR SETTLEMENT DURING THE FISCAL YEAR THAT ENDS THURSDAY MOST SHARES WENT EXDIVIDEND MONDAY KNOCKING THE NIKKEI TO ITS SESSION LOW OF 1972555 STOCK TRADES ON EXDIVIDEND DATES ARE GENERALLY AT LOWER PRICES REFLECTING THE ABSENCE OF DIVIDEND RIGHTS THE BENCHMARK INDEX REBOUNDED AS HIGH AS 2006291 AS FOREIGN INVESTORS BOUGHT FUTURES DURING THE MORNING IT RETREATED IN LATEDAY SELLING REFLECTING INVESTORS' FEARS OF FURTHER WEAKNESS IN OVERSEAS MARKETS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX INCHED UP 05 POINT TO 31295 THE FT 30STOCK INDEX ROSE 65 POINTS TO 24796 VOLUME WAS 5059 MILLION SHARES COMPARED WITH 8475 MILLION SHARES ON FRIDAY AFTER SOME EARLY BUYING INVESTORS TOOK THEIR CUES FROM EARLY BEARISHNESS ON WALL STREET AND A SLIDE IN GERMAN BONDS THIN VOLUME DUE IN PART TO THE START OF NEW ACCOUNT TRADING AND THE COMING EASTER HOLIDAY MADE THE MARKET PARTICULARLY PRONE TO ROLLERCOASTER MOVES IN FRANKFURT THE DAX 30STOCK INDEX JUMPED 3136 POINTS TO 216142 BONDS AND EQUITIES GOT A BOOST FROM INFLATION NEWS CONSUMER PRICES IN THE GERMAN STATE OF BAVARIA ROSE AT AN ANNUAL RATE OF JUST 28 IN MARCH AND THE 32 ANNUAL RISE IN THE PRELIMINARY WESTERN GERMAN CONSUMER PRICE INDEX FOR MARCH WAS IN LINE WITH EXPECTATIONS IN PARIS STOCKS ROSE ONLY SLIGHTLY AS A TECHNICAL REBOUND FADED BY THE SESSION'S CLOSE INVESTORS REMAINED PESSIMISTIC ABOUT WEAK STOCK AND BOND MARKETS AROUND THE WORLD THE SLOW PACE OF INTERESTRATE CUTS IN FRANCE AND GERMANY AND LABOR UNREST IN FRANCE BECAUSE OF A LAW REDUCING THE MINIMUM WAGE FOR YOUTHS YESTERDAY FRENCH PRIME MINISTER EDOUARD BALLADUR WITHDREW THE YOUTH EMPLOYMENT LAW IN AMSTERDAM PRICES ROSE STRONGLY IN A QUIET SESSION INVESTORS STAYED ON THE SIDELINES AFTER TAKING PROFITS LAST WEEK IN MILAN SHARES INCLUDING THOSE TRADED ELECTRONICALLY JUMPED 38 AS INVESTORS BET ON AN ELECTORAL VICTORY BY THE CENTERRIGHT LONG BEFORE THE POLLS CLOSED MONDAY EVENING IN MADRID EQUITIES SLIPPED ON LATE SELLING PROMPTED BY EARLY WEAKNESS ON WALL STREET IN STOCKHOLM SHARES SLID FOR THE NINTH STRAIGHT SESSION ON FINALHOUR SALES BY FOREIGN INVESTORS IN ZURICH PRICES CLIMBED 11 ON THIN VOLUME BOOSTED BY BLUE CHIPS IN MEXICO CITY EQUITIES DIVED 3 AMID FEARS THAT HARDLINERS MAY BE GAINING GROUND AS MEXICO'S GOVERNING PARTY SEEKS A SUCCESSOR TO PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO WHO WAS ASSASSINATED WEDNESDAY NIGHT FORMER DOMESTIC AFFAIRS SECRETARY FRANCISCO GUTIERREZ BARRIOS IS SAID TO BE A TOP CONTENDER IN SYDNEY STOCKS PLUMMETED 2 IN LIGHT TRADING AS INVESTORS FOCUSED ON SUCH NEGATIVE FACTORS AS CONTINUED WEAKNESS IN THE DOMESTIC BOND MARKET AND CONCERNS ABOUT INSTABILITY IN RUSSIA NORTH KOREA AND MEXICO A RETREAT BY FOREIGN INVESTORS FURTHER UNDERMINED PRICES IN HONG KONG SHARES SLIPPED ON LATE PROFITTAKING ALTHOUGH INVESTORS IGNORED FRIDAY'S 025 INCREASE IN PRIME LENDING RATES AMONG HONG KONG'S MAJOR BANKS IN SINGAPORE EQUITIES TUMBLED 11 IN QUIET DEALINGS AMID GENERAL INVESTOR PESSIMISM IN KUALA LUMPUR PRICES SANK 19 IN LIGHT TRADING AS BEARISHNESS WAS ACCENTUATED BY NEW MALAYSIAN RESTRICTIONS ON INVESTORS' ACCOUNTS AT BROKERAGES IN SEOUL STOCKS ROSE 12 ON RUMORS THAT THE GOVERNMENT WILL EASE PART OF ITS MARKETCOOLING MEASURES IMPLEMENTED IN EARLY FEBRUARY IN MANILA PRICES SURGED 21 IN BUSY TRADING BOOSTED BY BARGAINHUNTING AND POSITIONING FOR STOCK DIVIDENDS IN WELLINGTON SHARES SLID 14 IN QUIET TRADING REFLECTING WEAKNESS IN FOREIGN BOURSES INCLUDING THE AUSTRALIAN EXCHANGE IN BANGKOK EQUITIES PLUNGED 26 INVESTORS WERE JITTERY ABOUT THAI POLITICAL PROBLEMS AND AN INCREASE IN LENDING RATES BY MAJOR BANKS AMONG CORPORATE DEVELOPMENTS IN TOKYO ITOCHU JUMPED 31 YEN OR 48 TO 673 YEN 642 THE TRADING HOUSE IS CONSIDERING SETTING UP A NATIONWIDE CABLETELEVISION NETWORK IN JAPAN WITH CONSUMERELECTRONICS CONCERN TOSHIBA AND TWO US COMPANIES BUT NO CONCRETE DECISIONS HAVE BEEN MADE AN ITOCHU SPOKESMAN SAID HE DECLINED TO COMMENT ON A JAPANESE NEWS REPORT THAT THE COMPANIES PLAN TO INVEST 40 BILLION YEN 3815 MILLION TO SET UP 10 CABLETV STATIONS THROUGHOUT JAPAN IN LONDON PEARSON SURGED 29 PENCE OR 46 TO 666 PENCE 998 THE MEDIA AND BANKING GROUP'S 1993 PRETAX PROFIT JUMPED 38 TO 2086 MILLION 3126 MILLION FROM A YEAR EARLIER ON A 14 RISE IN SALES THE DIVIDEND ROSE ONE PENCE TO 13 PENCE INCHCAPE PLUNGED 35 PENCE OR 64 TO 515 PENCE THE DIVERSIFIED TRADING CONCERN REPORTED 1993 PRETAX PROFIT OF 2714 MILLION UP 85 FROM A YEAR EARLIER THE DIVIDEND ROSE TO 1480 PENCE FROM 1375 PENCE IN 1992 HOWEVER INCHCAPE'S CHAIRMAN SAID THAT DESPITE ENCOURAGING SIGNS IN CERTAIN MARKETS INCHCAPE DOESN'T EXPECT ANY MARKED RECOVERY IN THE BUSINESS CLIMATE FOR THE MAJORITY OF OUR OPERATIONS IN 1994 NOR CAN WE RELY ON ANY SIGNIFICANT IMPROVEMENT IN THE CURRENCY SITUATION 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 9403290088 940329 BUSINESS BRIEF PARALLEL PETROLEUM CORP DISCOVERY WELL COMPLETED IN 3DX TECHNOLOGIES DEAL PARALLEL PETROLEUM CORP SAID IT COMPLETED ITS FIRST EXPANDED YEGUA GAS SAND DISCOVERY WELL THE COX & PERKINS CATHERINE NO 1 LOCATED IN JACKSON COUNTY TEXAS THROUGH ITS PARTNERSHIP WITH 3DX TECHNOLOGIES INC PARALLEL BASED IN MIDLAND TEXAS SAID THAT ON A FOURPOINT TEST USING CHOKE SIZES RANGING FROM 5/64 TO 8/64 INCH THE WELL'S OPENFLOW POTENTIAL WAS CALCULATED TO BE 107 MILLION CUBIC FEET OF GAS PER DAY PLUS ASSOCIATED NATURAL GAS LIQUIDS AT A RATIO OF 52 BARRELS PER MILLION CUBIC FEET FLOWING TUBING PRESSURES RANGED FROM 6013 POUNDS PER SQUARE INCH TO 6568 POUNDS PER SQUARE INCH THE COMPANY SAID COX & PERKINS EXPLORATION INC IS OPERATOR OF THE WELL AND OWNS A 65 WORKING INTEREST 3DX TECHNOLOGIES WHICH MANAGED THE 3D SEISMIC IMAGING PROCESS FOR THE PROJECT OWNS A 175 WORKING INTEREST BEFORE PAYOUT AND A 21875 WORKING INTEREST THEREAFTER AND PARALLEL OWNS A 175 WORKING INTEREST BEFORE PAYOUT AND A 1313 WORKING INTEREST THEREAFTER 9403290087 940329 GRUMMAN ASKS FOR FINAL BIDS BY THURSDAY NORTHROP SHARPLY OBJECTS CLAIMING UNLEVEL' FIELD WITH MARTIN MARIETTA BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL GRUMMAN CORP SET UP A PROCESS FOR NORTHROP CORP AND MARTIN MARIETTA CORP TO SUBMIT FINAL BIDS FOR THE COMPANY BY THURSDAY AFTERNOON BUT NORTHROP CRITICIZED THE NEW RULES AS ESSENTIALLY FORCING IT TO BID AGAINST ITSELF GRUMMAN SAID IN A LETTER TO ITS TWO SUITORS THAT IT WANTED A PROMPT AND ORDERLY CLOSE TO THE BIDDING AND THAT IT PLANNED TO ANNOUNCE A WINNER MONDAY AT 9 AM EST GRUMMAN CHAIRMAN RENSO L CAPORALI ADVISED NORTHROP AND MARTIN MARIETTA THAT THE PERIOD FROM THURSDAY EVENING THROUGH SUNDAY WOULD BE USED TO EXECUTE THE FINAL AGREEMENT AND ACQUISITION PLAN WITH THE COMPANY SUBMITTING THE PREVAILING BID IN A SCATHING RESPONSE TO MR CAPORALI HOWEVER NORTHROP CHAIRMAN KENT KRESA CHARGED THAT THE NEW GRUMMAN PROCEDURE CONTINUES THE UNLEVEL PLAYING FIELD THAT NORTHROP CONTENDS HAS HANDICAPPED ITS BIDDING THE LETTER POINTED OUT THAT NORTHROP CONTINUES TO BE FACED WITH THE COST OF THE MARTIN MARIETTA LOCKUP FEE A 50 MILLION EXPENSE THAT WAS INCLUDED IN THE ACQUISITION AGREEMENT MARTIN MARIETTA ORIGINALLY SIGNED WITH GRUMMAN ON MARCH 7 MR KRESA ALSO OBJECTED TO HAVING TO CONSIDER A NEW OFFER AGAINST A PURELY HYPOTHETICAL PRICE INCREASE FROM MARTIN MARIETTA WITHOUT ANY NOTICE OR KNOWLEDGE OF WHETHER SUCH AN INCREASE IS IN FACT SUBMITTED NORTHROP HAS OFFERED 60 A SHARE OR 204 BILLION FOR THE BETHPAGE NY DEFENSEELECTRONICS COMPANY AND MAKER OF TACTICAL AIRCRAFT THAT HOSTILE OFFER CAME THREE DAYS AFTER THE 55ASHARE MARTIN MARIETTAGRUMMAN AGREEMENT TOTALING 193 BILLION IN GRUMMAN'S LETTER TO NORTHROP AND MARTIN MARIETTA MR CAPORALI SAID HIS COMPANY WANTS A SINGLE AND FINAL ROUND OF BIDDING AND EACH OF YOU SHOULD SUBMIT YOUR BEST AND HIGHEST OFFER OTHER COMPANIES' BIDS WOULD BE CONSIDERED ALTHOUGH NONE HAD BEEN RECEIVED YET ACCORDING TO A GRUMMAN SPOKESMAN THE GRUMMAN LETTER CITED NORTHROP'S EARLIER REQUEST FOR FREE AND OPEN COMPETITIVE BIDDING USING THE SAME LANGUAGE TO EXPLAIN GRUMMAN'S LATEST ACTION THE LETTER QUOTED A MARTIN MARIETTA COMMUNICATION THAT ACKNOWLEDGED GRUMMAN'S RESPONSES TO THE RIVAL BIDS ARE OF COURSE GRUMMAN DECISIONS ALONE AND REQUESTED PROMPT INFORMATION IF GRUMMAN ESTABLISHED BIDDING PROCEDURES A SPOKESMAN FOR MARTIN MARIETTA THE FASTGROWING BETHESDA MD AEROSPACE AND DEFENSE ELECTRONICS CONCERN SAID IT WAS REVIEWING THE GRUMMAN LETTER MR KRESA ARGUED IN HIS LETTER THAT A FAIR PROCESS WOULD INVOLVE INVITING CONTINUED BIDS WITHOUT GRUMMAN'S DEADLINE GOVERNED INSTEAD BY THE EFFECT OF TIME AND FINANCIAL CONSTRAINTS ON BOTH SUITORS SUCH AN APPROACH WOULD AVOID HAVING TO PREMATURELY CUT OFF POTENTIAL BIDDING AND POTENTIALLY DEPRIVE GRUMMAN STOCKHOLDERS OF THE OPPORTUNITY TO RECEIVE THE MAXIMUM VALUE FOR THEIR SHARES THE NORTHROP CHAIRMAN WROTE THIS OF COURSE WILL OCCUR IF NORTHROP IS NOT ALLOWED THE OPPORTUNITY TO TOP ANY INCREASE IN BID WHICH MARTIN MARIETTA WISHES TO MAKE THE NORTHROP LETTER SAID A NORTHROP SPOKESMAN WOULDN'T SAY IF HIS COMPANY WOULD PARTICIPATE IN GRUMMAN'S NEW BIDDING ROUND OR IF IT MIGHT CHALLENGE THE PROCEDURES BY RESPONDING TO ANY NEW MARTIN MARIETTA OFFER AFTER THE DEADLINE PASSES THE SPOKESMAN SAID ONLY THAT WE'RE KEEPING OUR OPTIONS OPEN BEFORE NORTHROP'S RESPONSE WHICH WAS ISSUED AFTER THE MARKET CLOSED INVESTORS YESTERDAY REASONED THAT MUCH HIGHER OFFERS MIGHT BE SUBMITTED FOR GRUMMAN SHARES OF GRUMMAN ROSE 1625 TO 64875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE 1375 FALL YESTERDAY IN NORTHROP'S STOCK WHICH CLOSED AT 4275 WAS ATTRIBUTED BY ANALYSTS TO SPECULATION THAT NORTHROP WOULD EMERGE VICTORIOUS THUS SHOULDERING THE FINANCING BURDEN OF ACQUIRING GRUMMAN MARTIN MARIETTA SHARES ROSE 75 CENTS CLOSING AT 46 EVEN EARLY IN THE DAY THOUGH SOME AEROSPACEINDUSTRY WATCHERS QUESTIONED WHETHER GRUMMAN'S ATTEMPT TO IMPOSE DISCIPLINE MIGHT BE UNNECESSARY ONE THEORY IS THAT MARTIN MARIETTA MIGHT CHOOSE NOT TO TOP THE CURRENT NORTHROP BID UNLESS MARTIN MARIETTA HAS NEW INFORMATION ABOUT GRUMMAN'S VALUE I WOULD BE SURPRISED IF THEY JUMPED INTO AN ALLOUT BIDDING WAR SAID WOLFGANG DEMISCH AN ANALYST FOR BT SECURITIES IN NEW YORK I JUST REMEMBER THAT IN THE PAST WHEN THE BIDDING FOR VOUGHT CORP GOT TO LEVELS THEY MARTIN MARIETTA THOUGHT WERE UNSATISFACTORY THEY DECIDED TO DROP OUT AFTER MARTIN MARIETTA AND LOCKHEED CORP JOINTLY AGREED TO ACQUIRE THE VOUGHT MISSILE AND AIRCRAFT UNITS OF LTV CORP IN 1992 FOR 355 MILLION THE TWO COMPANIES LOST AN EVENTUAL BIDDING WAR FOR THOSE OPERATIONS WHEN A GROUP COMPRISING LORAL CORP CLOSELY HELD CARLYLE GROUP AND NORTHROP BOUGHT THEM FOR 476 MILLION STILL MR DEMISCH SAID IT WAS IMPORTANT THAT COMPANIES IN AN INDUSTRY SUCH AS DEFENSE WHICH RECEIVES SO MUCH GOVERNMENT SUPPORT BE CAREFUL TO AVOID THE PARAMOUNT EXPERIENCE REFLECTING THE NASTY AND EXPENSIVE BATTLE THAT VIACOM INC WON OVER QVC NETWORK INC TO ACQUIRE PARAMOUNT COMMUNICATIONS INC THE MORE FLAMBOYANT TAKEOVER TECHNIQUES ARE ENTIRELY INAPPROPRIATE AND COULD SPUR A REACTION FROM CONGRESS HE SAID UNDER TERMS IN THE LETTER BIDS FOR GRUMMAN ARE TO BE DELIVERED TO GOLDMAN SACHS & CO BY 5 PM EST THURSDAY THE PROPOSALS ARE TO FOLLOW THE TERMS OF MARTIN MARIETTA'S AND NORTHROP'S PREVIOUS ACQUISITION PLANS EXCEPT FOR PRICE AND ARE TO BE CONFIDENTIAL AND IRREVOCABLE UNTIL 9 AM MONDAY GRUMMAN DIRECTORS WOULD ACCEPT THE OFFER PRESENTING THE BEST VALUE REASONABLY OBTAINABLE FOR SHAREHOLDERS THE LETTER SAID MARTIN MARIETTA LAST WEEK PRESSURED GRUMMAN TO REJECT NORTHROP'S BID AS VIOLATING AN EARLIER STANDSTILL AGREEMENT WITH GRUMMAN BUT GRUMMAN DECIDED INSTEAD TO GRANT NORTHROP ACCESS TO THE NONPUBLIC FINANCIAL INFORMATION IT HAD BEEN SEEKING THE INFORMATION NOW HAS BEEN PROVIDED TO NORTHROP ACCORDING TO THE GRUMMAN SPOKESMAN 9403290086 940329 BUSINESS BRIEF FEDERAL PAPER BOARD CO FISCAL FIRSTQUARTER RESULTS FELL SHORT OF EXPECTATIONS FEDERAL PAPER BOARD CO MONTVALE NJ SAID IT WILL REPORT LOWERTHANEXPECTED RESULTS FOR THE FISCAL FIRST QUARTER ENDED SUNDAY BUT THE BALANCE OF THE YEAR LOOKS FAR MORE FAVORABLE THE COMPANY ADDED FOR THE YEAREARLIER PERIOD THE COMPANY POSTED NET INCOME OF 91 MILLION OR 18 CENTS A SHARE ON SALES OF 3198 MILLION THOMAS L COX VICE PRESIDENT AND TREASURER SAID MANY ANALYSTS HAD EXPECTED EARNINGS OF ABOUT 20 CENTS A SHARE FOR THE LATEST FIRST QUARTER RICHARD PALM A MERRILL LYNCH & CO ANALYST SAID HE HAD PROJECTED 22 CENTS A SHARE THE COMPANY SAID FIRSTQUARTER RESULTS WERE ADVERSELY AFFECTED BY POOR WEATHER WEAKNESS IN PARTS OF THE BLEACHEDPAPERBOARD MARKET AND OPERATING PROBLEMS THAT RESULTED IN LOST PRODUCTION AND HIGHER COSTS IN SOME FACILITIES NONETHELESS JOHN R KENNEDY PRESIDENT SAID THE PULP MARKET IS ENJOYING INCREASED DEMAND AND IMPROVED PRICING WITH A RECENT PRICE INCREASE EXPECTED TO BE REALIZED BEGINNING WITH SHIPMENTS IN EARLY APRIL 9403290085 940329 WHAT'S NEWS WORLDWIDE A ZULU MARCH TURNED VIOLENT KILLING AT LEAST 31 PEOPLE IN JOHANNESBURG MANY DEATHS OCCURRED WHEN GUARDS AT AFRICAN NATIONAL CONGRESS HEADQUARTERS FIRED ON PROTESTERS MANY ARMED WITH SPEARS ADVANCING ON THE BUILDING MORE THAN 200 PEOPLE WERE INJURED ZULU NATIONALISTS CALLED THE MARCH AS A SHOW OF STRENGTH IN SOUTH AFRICA'S LARGEST CITY AS THE GOVERNMENT WEIGHS MEASURES TO ENSURE SECURITY FOR VOTERS IN THE ZULU HOMELAND ZULU LEADERS ARE BOYCOTTING NEXT MONTH'S ALLRACE ELECTIONS AND DEMAND AUTONOMY FOR KWAZULU LEADERS OF SOUTH AFRICA'S MAIN PARTIES WERE TRYING TO ARRANGE A MEETING BETWEEN DE KLERK MANDELA AND INKATHA LEADER BUTHELEZI TO DEFUSE THE SITUATION BERLUSCONI APPEARED SET TO BECOME LEADER OF A NEW ITALIAN GOVERNMENT AFTER A LANDMARK VOTE PROJECTIONS SHOWED THE TYCOON'S RIGHTWING ALLIANCE WHICH INCLUDES A NEOFASCIST GROUP RUNNING WELL AHEAD OF A LEFTWING COALITION A POLL SAID BERLUSCONI'S GROUP COULD TAKE AS MANY AS 380 OF 630 LOWERHOUSE SEATS MEXICAN AUTHORITIES DETAINED A SECOND SUSPECT IN LAST WEEK'S KILLING OF THE RULING PARTY'S PRESIDENTIAL CANDIDATE AND SAID THEY WERE INVESTIGATING POSSIBLE LINKS BETWEEN THE CONFESSED ASSASSIN AND RADICAL GROUPS BASED IN SOUTHERN LOS ANGELES WITH UNCERTAINTY HIGH THE MEXICAN STOCK MARKET DECLINED ALMOST 3 ISRAEL'S ARMY WILL BE READY TO PULL OUT OF THE GAZA STRIP BY APRIL 14 ISRAELI TV SAID AND FOREIGN MINISTER PERES SAID AN AUTONOMY ACCORD WITH THE PLO COULD BE COMPLETED BY THEN DESPITE SIGNS OF PROGRESS IN RESTARTING PEACE TALKS A NEW OBSTACLE WAS THROWN UP WHEN UNDERCOVER ISRAELI TROOPS KILLED SIX MEMBERS OF ARAFAT'S PLO FACTION IN GAZA BOSNIAN MUSLIM AND CROAT LEADERS MET IN SARAJEVO AND BOTH SIDES EXPRESSED CONFIDENCE THE JOINT ASSEMBLY WOULD DRAFT A CONSTITUTION AND FORM AN INTERIM GOVERNMENT FOR A PLANNED FEDERATION MEANWHILE UN OFFICIALS SAID SERB ARTILLERY REMAINED WITHIN AN EXCLUSION ZONE AROUND THE CITY DESPITE PROMISES IT WOULD BE WITHDRAWN A CLINTON BROKER WAS DISCIPLINED BY REGULATORS BOTH BEFORE AND AFTER HILLARY RODHAM CLINTON EARNED 98000 TRADING CATTLE FUTURES IN THE LATE 1970S THE BROKER WAS ACCUSED AMONG OTHER THINGS OF ALLOCATING TRADES TO INVESTORS AFTER HE HAD DETERMINED WHETHER THE TRADES HAD MADE OR LOST MONEY REGULATORS SAY FRANCE'S BALLADUR RETREATED IN THE FACE OF WIDESPREAD PROTESTS AND DROPPED A BILL THAT WOULD HAVE ALLOWED EMPLOYERS TO HIRE YOUTHS AT REDUCED WAGES IF THEY PROVIDED JOB TRAINING THE CONSERVATIVE PREMIER ALSO HAS YIELDED TO DEMANDS BY LABOR GROUPS RECENTLY BLUNTING HIS EFFORTS TO ATTACK A 122 UNEMPLOYMENT RATE VOTERS IN UKRAINE HANDED A SETBACK TO KRAVCHUK WITH A HEAVY TURNOUT IN ELECTIONS SUNDAY THOUGH RUNOFFS WILL BE NEEDED IN MOST PARLIAMENTARY CONTESTS THE SHOWING MAKES IT HARD FOR THE PRESIDENT TO CANCEL RESULTS OR BOOST HIS POWERS MEANWHILE DONBAS AND CRIMEA VOTERS BACKED STRONGER RUSSIA TIES THE SUPREME COURT LET STAND MONTANA'S 1979 ABOLITION OF THE INSANITY DEFENSE FOR CRIMINAL DEFENDANTS ALTHOUGH THE JUSTICES' ACTION ISN'T A RULING AND SO DOES NOT PRECLUDE THE POSSIBILITY THAT THEY MAY CONSIDER THE ISSUE SOMEDAY OTHER STATES ARE NOW FREE TO FOLLOW MONTANA'S LEAD SO FAR ONLY TWO OTHER STATES IDAHO AND UTAH HAVE DONE SO SOMALI GUNMEN CLASHED WITH UN PEACEKEEPERS GUARDING MOGADISHU'S PORT AS FIGHTING MOUNTED AFTER THE WITHDRAWAL OF US TROOPS LAST WEEK IN KISMAYU TWO INDIAN PEACEKEEPERS WERE KILLED IN A BATTLE WITH GUNMEN AT TALKS IN KENYA TWO CLAN LEADERS AGREED TO END FACTIONAL FIGHTING IN KISMAYU AND HOLD A PEACE CONFERENCE NEXT WEEK THE US APOLOGIZED TO JAPAN FOR THE KILLING OF TWO JAPANESE STUDENTS WHO WERE SHOT DURING A ROBBERY IN LOS ANGELES FRIDAY AND TAKEN OFF LIFESUPPORT SYSTEMS SUNDAY THE KILLINGS REINFORCED JAPAN'S IMAGE OF THE US AS A VIOLENT LAND AMBASSADOR MONDALE ISSUED THE APOLOGY ON CLINTON'S BEHALF THE DEATH TOLL IN SOUTHEAST STORMS ROSE TO AT LEAST 43 WITH 21 DEATHS RESULTING FROM THE COLLAPSE OF AN ALABAMA CHURCH IN A TORNADO CLINTON CONFERRED WITH EMERGENCY OFFICIALS DIED EUGENE IONESCO 81 ROMANIANBORN WRITER OF ABSURDIST PLAYS IN PARIS 9403290084 940329 BUSINESS BRIEF MATTEL INC COMPANY WILL BUY KRANSCO MAKER OF CHILDREN'S GOODS TOY MAKER MATTEL INC SAID IT AGREED TO ACQUIRE KRANSCO THE PRODUCER OF HULA HOOPS FRISBEES AND CHILDREN'S RIDEON ELECTRIC CARS FOR CASH THE AMOUNT WASN'T DISCLOSED CLOSELY HELD KRANSCO LAST YEAR HAD REVENUE OF 175 MILLION THE SAN FRANCISCOBASED COMPANY HAS 1200 EMPLOYEES AND MARKETS THE HULA HOOP AND FRISBEE PRODUCTS UNDER THE WHAMO NAME ITS LARGEST REVENUE PRODUCER IS THE POWER WHEELS LINE OF CHILDREN'S RIDEON CARS A MATTEL SPOKESMAN SAID MATTEL BASED IN EL SEGUNDO CALIF LAST YEAR HAD REVENUE OF 27 BILLION THE COMPANIES SAID THAT SUBJECT TO REGULATORY APPROVAL THEY EXPECT TO COMPLETE THE TRANSACTION BY THE END OF MAY 9403290083 940329 BUSINESS BRIEF HYUNDAI MOTOR CORP NEW MODEL TO BE PRODUCED IN SOUTH KOREA NOT QUEBEC HYUNDAI MOTOR CORP SAID IT HAS DECIDED NOT TO REOPEN ITS PLANT IN BROMONT QUEBEC TO BUILD THE REDESIGNED ELANTRA MODEL AS PLANNED INSTEAD THE AUTO MAKER WILL BUILD THE CAR IN SOUTH KOREA WHERE THE COMPANY IS BASED HYUNDAI LAST YEAR ANNOUNCED PLANS TO BUILD THE NEXT GENERATION ELANTRA MODEL AT ITS ASSEMBLY PLANT IN CANADA STARTING IN JULY 1995 BUT THE AUTO MAKER SAID CURRENCY EXCHANGE RATES AND CHANGES IN TRADE ENVIRONMENT COMBINED WITH A WEAK GLOBAL ECONOMY AND SLUGGISH AUTOMOTIVE MARKET MAKE IT DIFFICULT FOR THE COMPANY TO GO FORWARD WITH THE PLAN AS ORIGINALLY CONCEIVED HYUNDAI SAID IT WILL CONDUCT A ONEYEAR FEASIBILITY STUDY ON HOW TO BEST USE ITS CANADIAN ASSEMBLY PLANT THE PLANT WHICH OPENED IN 1989 HAS BEEN CLOSED SINCE SEPTEMBER 1993 IF HYUNDAI FAILS TO REOPEN THE PLANT IT WILL BE FORCED TO PAY BACK 46 MILLION IN SUBSIDIES PROVIDED BY THE CANADIAN GOVERNMENT 9403290082 940329 INTERNATIONAL MEDIA TYCOON'S RIGHTWING ALLIANCE WINS CONTROL OF ITALIAN PARLIAMENT BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN ITALIAN MEDIA TYCOON SILVIO BERLUSCONI AND HIS RIGHTWING FREEDOM ALLIANCE LOOKED SET TO GAIN CONTROL OF THE ITALIAN PARLIAMENT FOLLOWING THE COUNTRY'S LANDMARK ELECTIONS BUT WHETHER THE ODD GROUP WHICH ALSO INCLUDES THE NEOFASCIST NATIONAL ALLIANCE AND FEDERALIST NORTHERN LEAGUE CAN FORM A COHESIVE GOVERNMENT IS STILL UNCERTAIN ITALIAN POLITICAL COMMENTATORS SAID IN THE FIRST ELECTIONS SINCE THE COUNTRY'S TWOYEAROLD CORRUPTION SCANDAL DECIMATED THE REIGNING POLITICAL ESTABLISHMENT THE FREEDOM ALLIANCE LED VOTING IN THE LOWER HOUSE OF PARLIAMENT AND WAS LIKELY TO CLAIM AN ABSOLUTE MAJORITY EXIT POLLS SHOWED BASED ON PROJECTIONS OF ACTUAL VOTES FOR THE SENATE THE ALLIANCE ALSO LED VOTING IN THE SENATE OVER THE LEFTWING PROGRESSIVE ALLIANCE FINAL RESULTS OF THE HISTORIC ELECTION WHICH ENDS THE NEAR HALFCENTURY RULE OF THE DEPARTING CHRISTIAN DEMOCRATLED COALITION WILL NOT BE AVAILABLE UNTIL TODAY BUT TWO INDEPENDENT EXIT POLLS LAST NIGHT SHOWED THE FREEDOM ALLIANCE WITH AN ABSOLUTE MAJORITY OF SEATS IN THE LOWER HOUSE ACCORDING TO A POLL BY DIRECTA FOR TELEMONTECARLO THE FREEDOM ALLIANCE WON AN ESTIMATED 315 TO 380 SEATS OF THE 630SEAT CHAMBER OF DEPUTIES WHILE THE PROGRESSIVES CLAIMED AN ESTIMATED 210 TO 255 SEATS THE CENTER COMPRISING FORMER CHRISTIAN DEMOCRATS AND THE REFORMIST PACT FOR ITALY CLAIMED 40 TO 50 SEATS AN ALLIANCE NEEDS 315 SEATS FOR A MAJORITY IN THE SENATE AN RAI TV PROJECTION BASED ON AN EARLY VOTE COUNT SHOWED THE FREEDOM ALLIANCE WON 41 OF THE VOTES WHILE THE PROGRESSIVE ALLIANCE TOOK 35 ACCORDING TO DOXA PROJECTIONS THE FREEDOM ALLIANCE LED VOTING IN THE SENATE WINNING 153 TO 171 OF THE 315 SENATE SEATS WHILE THE PROGRESSIVE ALLIANCE CLAIMED 130 TO 142 HOWEVER AN EARLIER EXIT POLL BY DOXA FOR MR BERLUSCONI'S CHANNEL 5 TV REVERSED THE OUTCOME GIVING THE PROGRESSIVES 48 TO 54 OF THE SEATS AND THE FREEDOM ALLIANCE 37 TO 44 THREE MONTHS AGO WE HAD AN UNCERTAIN FUTURE IN FRONT OF US WITH A LEFTIST REGIME THAT WOULD NOT HAVE GUARANTEED FREEDOM MR BERLUSCONI DECLARED TRIUMPHANTLY AT A NEWS CONFERENCE IN ROME AFTER MIDNIGHT IN ANTICIPATION OF A CLEAR MAJORITY FOR EITHER SIDE FINANCIAL MARKETS REACTED EUPHORICALLY MONDAY LIFTING THE MILAN STOCK EXCHANGE 38 AND BOOSTING THE LIRA TO 1634 TO THE DOLLAR FROM 1653 ON FRIDAY THE MARKET REACTION WAS NOT SO MUCH AN ENDORSEMENT OF THE VICTORS ANALYSTS SAID AS RELIEF THAT A LONG PERIOD OF POLITICAL UNCERTAINTY APPEARED TO BE OVER WITH ELECTIONS OVER ANALYSTS SAY ANY NEW GOVERNMENT WILL HAVE LITTLE ROOM TO MANEUVER IN THE CRITICAL AREAS OF REINING IN THE STATE'S GALLOPING DEBT PRIVATIZING INDUSTRY AND TURNING BACK THE BLOATED WELFARE STATE UNCERTAINTY CLOUDS THE FUTURE FOR ONE THE COMPOSITION OF THE NEXT GOVERNMENT IS FAR FROM CLEAR OVER THE NEXT FEW DAYS PRESIDENT OSCAR LUIGI SCALFARO WILL CHOOSE THE NEXT PRIME MINISTER WHO WILL THEN BE ASKED TO FORM A GOVERNMENT WHILE MR SCALFARO IS LIKELY TO PICK A LEADER FROM THE FREEDOM ALLIANCE IF FINAL RESULTS CONFIRM A MAJORITY FORMATION OF A GOVERNMENT COULD PROVE PROBLEMATIC MR BERLUSCONI HAS MADE NO SECRET OF HIS AMBITION TO HEAD THE NEXT GOVERNMENT HOWEVER SERIOUS DIFFERENCES BETWEEN HIS ALLIES COULD SPLIT THE FREEDOM ALLIANCE AND FORCE NEGOTIATIONS WITH THE CENTER IN SUCH A SCENARIO THE CENTER HAS SAID IT WOULD FAVOR REFORM LEADER MARIO SEGNI AS PREMIER THE FRAGILITY OF THE ALLIANCES WILL BE A MAJOR OBSTACLE NOT ONLY TO FORMATION OF AN EVENTUAL GOVERNMENT BUT TO THE ACTUAL PROGRAMS OF THE GOVERNMENT MR BERLUSCONI'S FORZA ITALIA IS PART OF THE FREEDOM ALLIANCE WITH THE FEDERALIST NORTHERN LEAGUE AND THE NEOFASCIST NATIONAL ALLIANCE LAST NIGHT NATIONAL LEAGUE LEADER UMBERTO BOSSI SIGNALED POTENTIAL PROBLEMS IN GOVERNING WITH THE NEOFASCISTS THE LEAGUE STANDS FOR MODERN LIBERAL ITALY NOT A REACTIONARY ITALY MR BOSSI SAID REFERRING TO THE NATIONAL ALLIANCE HE SAID HIS PARTY DRAWS VOTES MAINLY FROM THE POORER SOUTH WHICH IS TRYING TO OPEN UP THE WALLETS OF THE NORTH THE TWODAY POLL WAS THE FIRST TEST OF ITALY'S AWKWARD NEW ELECTORAL SYSTEM WHERE 75 OF PARLIAMENT WILL BE ELECTED THROUGH A US STYLE WINNERTAKEALL SYSTEM AND THE BALANCE THROUGH PROPORTIONAL REPRESENTATION 9403290081 940329 LEISURE & ARTS WILL SUCCESS TEAR COUNTRY MUSIC LIMB FROM LIMB BY JAMES RING ADAMS YEP IT'S TRUE SAYS NEW COUNTRY MUSIC STAR TRACY LAWRENCE HE DID WEAR A BULLETPROOF VEST WHEN HE PERFORMED AT THE TEXAS STATE FAIR IN DALLAS AND THE WAY THINGS ARE GOING HE INTENDS TO KEEP ONE ON HAND FOR ANY BIG OPENAIR CONCERT WHERE THINGS COULD POSSIBLY GET OUT OF HAND THESE PRECAUTIONS PRACTICALLY UNHEARD OF 10 YEARS EARLIER IN THIS MOST ACCESSIBLE OF ART FORMS ILLUSTRATE THE FAUSTIAN BARGAIN AT THE SOUL OF CURRENT COUNTRY MUSIC PERFORMERS AND RECORD LABELS ARE STARTING TO ATTRACT THE FANATIC FOLLOWING AND SALES ONCE RESERVED FOR BIGTIME ROCK STARS ALONG WITH THE ATTENTION COMES A HOST OF NEW DEMANDS COUNTRY STARS HAVE TO LOOK YOUNGER AND SEXIER MORE VISUAL AS THEY SAY THEY HAVE TO SELL MORE RECORDS TO KEEP THEIR CONTRACTS AND THEY HAVE TO WORRY ABOUT OCCASIONALLY VIOLENT AUDIENCES ROCK MUSIC LEARNED THE IMPORTANCE OF PROFESSIONAL SECURITY AT ITS LARGE ARENA SHOWS AFTER SOME CELEBRATED DISASTERS IN THE '60S COUNTRY MUSIC IS NOW MULLING OVER THE SAME LESSON LAWRENCE A SLENDER 6FOOT BLOND WITH A HEARTTHROB BALLAD STYLE HAS HAD MORE THAN ONE HARROWING ENCOUNTER WITH OVERENTHUSIASTIC FANS THERE WAS ONE LADY WHO GRABBED ME WHEN I WAS GETTING ON THE BUS AFTER A SHOW HE REMEMBERED OVER LUNCH IN A MIDTOWN MANHATTAN ITALIAN RESTAURANT WHERE TO EVERYONE'S RELIEF NO ONE SEEMED TO RECOGNIZE HIM THEY COULDN'T GET HER TO LET GO SHE GOT AWAY WITH A HANK OF MY HAIR HE WINCED LAWRENCE TO BE SURE ISN'T A TYPICAL CASE STUDY FOR A WHILE HE WAS STALKED BY A WOMAN WITH A VIOLENT CRIMINAL RECORD AND WHEN HE FIRST CAME TO NASHVILLE HE WAS SHOT FIVE TIMES IN A HOLDUP ON MUSIC ROW HIS ASSAILANTS THEN WERE MUGGERS NOT FANS MORE ROUTINE SECURITY RISKS DON'T FAZE COUNTRY MUSICIANS WHO ARE MORE THAN HAPPY TO DRAW A YOUNGER AND MORE BOISTEROUS CROWD WHEN THEY ALSO BRING IN GREAT BATCHES OF MONEY LIVE PERFORMANCES BY OVERNIGHT SENSATIONS GARTH BROOKS AND BILLY RAY CYRUS SOMETIMES SOUND LIKE NUREMBERG RALLIES BUT THEY ARE HITTING THE TOP OF THE POP CHARTS AS WELL AS THE COUNTRY LISTINGS AND GENERATING A CASH FLOW THAT IS LITERALLY TRANSFORMING THE FACE OF NASHVILLE'S MUSIC ROW COUNTRYMUSIC TOURS THE BREAD AND BUTTER MONEYMAKERS FOR MOST PERFORMERS ARE BEGINNING TO SHOW UP IN INDUSTRY LISTS OF THE TOP GROSSING ACTS FOR ALL GENRES THE JUDDS IN THEIR LAST YEAR TOGETHER AS A MOTHERDAUGHTER DUET IN 1991 PLACED FOURTH IN THE OVERALL LIST COMPILED BY PERFORMANCE MAGAZINE THE INDUSTRY JOURNAL FOR CONCERT PRODUCTIONS AND DAUGHTER WYNONNA'S SOLO TOUR LAST YEAR DID ALMOST AS WELL EIGHT YEARS AGO REBA MCENTIRE ONE OF COUNTRY'S SUPERSTARS WOULD JUST STAND UP ON STAGE AND SING HER CURRENT TOUR FEATURES MULTIPLE COSTUME CHANGES AND BACKGROUND VIDEO AND ANIMATION PROJECTIONS ON A 25BY60FOOT SCREEN IT TAKES EIGHT PETERBILT TRUCKS TO TRANSPORT THE PRODUCTION IN ANOTHER NOTABLE EXAMPLE OKLAHOMAN JOE DIFFIE'S HONKY TONK ATTITUDE TOUR RECREATES A WESTERN HONKYTONK ON THE ARENA STAGES HE PLAYED THE SET CARTED AROUND ON TRUCKS WENT ON TO THE NEXT STOP WHEN MR DIFFIE PLAYED REAL HONKYTONKS THE SOMETIMES HEAVYSET MR DIFFIE ALSO ILLUSTRATES THE PRESSURE ON STARS TO STAY FIT OFTEN A DIFFICULT TASK WHEN THEY SPEND UP TO 300 DAYS A YEAR ON THE ROAD LIVING ON FAST FOOD MR DIFFIE SOLVED THE PROBLEM BY BRINGING A PERSONAL TRAINER ALONG ON HIS TOUR BUS THE DECISION HE ADMITTED WAS HIGHLY ENCOURAGED BY HIS RECORD LABEL AFTER WEEKS OF DAILY JOGS SITUPS AND CAREFUL EATING HE LOST 30 POUNDS AND FOUND HE COULD KEEP A HIGHER ENERGY LEVEL THROUGH HIS CONCERTS I'M SEEING A LOT MORE YOUNGER WOMEN AT MY SHOWS HE ADDED TODAY'S EMPHASIS ON THE VISUAL IN COUNTRY MUSIC PROBABLY CAN BE TRACED TO THE ADVENT OF THE COUNTRYMUSIC VIDEO STAN HITCHCOCK ONE OF THE FOUNDERS OF COUNTRY MUSIC TELEVISION DATES THE SHIFT TO 1983 THE DEBUT OF THE ALLCOUNTRY MUSIC VIDEO CABLE NETWORK AT THE TIME HE SAID THERE WERE ONLY 20 COUNTRY VIDEOS IN THE WORLD HIS NETWORK HE SAID BROUGHT A BOOM IN VIDEOMAKING NOW A STATEOFTHEART INDUSTRY IN NASHVILLE WHOSE PRODUCTS SPILLED OVER TO THE ROCKVIDEO CHANNELS AND PERMANENTLY CHANGED THE WAY COUNTRY MUSICIANS WERE MARKETED BEFORE THE VIDEO MR HITCHCOCK SAID FANS KNEW THE PERFORMERS PRIMARILY THROUGH THE RADIO MR HITCHCOCK WHO HAS SOLD HIS STAKE IN CMT AND EARLIER THIS YEAR LAUNCHED THE 24HOUR AMERICANA TELEVISION NETWORK DEVOTED TO AMERICAN ROOTS MUSIC AND FOLK LIFE SAID HE LEARNED THE IMPORTANCE OF THE VISUAL COMPONENT FOR A YOUNG AUDIENCE WHEN HE ONCE PUT AN OLD LP ON HIS STEREO AND NOTICED THAT HIS FOURYEAROLD SON IMMEDIATELY TURNED TOWARD THE TELEVISION THE MULTISENSORY VEHICLE OF THE VIDEO SAID MR HITCHCOCK NOT ONLY ATTRACTED A YOUNGER AUDIENCE IT HELPED BREAKOUT ARTISTS THAT RADIO WOULDN'T TOUCH HIS PRIME EXAMPLE IS A GROUP CALLED THE KENTUCKY HEAD HUNTERS WHOSE GENIALLY SCRUFFY STRAGGLY HAIRED MEMBERS MIXED BILL MONROE AND HANK WILLIAMS SR WITH HEAVYMETAL GUITAR CADENZAS ONCE VIDEO WON THEM AN AUDIENCE THE RADIO PROGRAMMERS JUMPED ON THE BANDWAGON AND KEPT IT GOING ALTHOUGH MANY EXECUTIVES WON'T SAY SO OUTRIGHT AND THE HEAD HUNTER EXAMPLE MAY ARGUE OTHERWISE THE VISUAL ELEMENT OFTEN BOILS DOWN TO SEX APPEAL IT'S A FAVORITE SPECULATION AMONG MUSICIANS WHETHER EARLIER GREAT PERFORMERS AS HOMELY AS ERNEST TUBB AND PATSY CLINE WOULD HAVE WON RECORD DEALS UNDER CURRENT CONDITIONS I THINK THERE ONCE WAS A TIME WHEN THE VISUAL COMPONENT MEANT VERY LITTLE SAID RAY WUNSCH PRESIDENT OF COLUMBIA RECORDSNASHVILLE NOW IT'S A PREFERRED PRIORITY THIS SHIFT CERTAINLY HELPED MR LAWRENCE TO AN EARLY START ON HIS CAREER THE TEXAS NATIVE LANDED A CONTRACT WITH ATLANTIC RECORDS JUST SEVEN MONTHS AFTER HIS ARRIVAL IN NASHVILLE IN 1990 AT THE AGE OF 23 WRANGLER JEANS SIGNED HIM UP FOR A PRODUCT ENDORSEMENT ANOTHER BOOMING SIDELINE FOR COUNTRY STARS EVEN BEFORE HE RELEASED HIS FIRST SINGLE THEN ONE NIGHT AFTER A MIXING SESSION AS HE WALKED A VISITING GIRLFRIEND TO HER HOTEL HE RAN INTO A PAIR OF MUGGERS HE CONCLUDED THAT THE INCIDENT WOULDN'T STOP AT ROBBERY AND JUMPED ONE OF THE GUNMEN THE ROBBERS FLED BUT NOT BEFORE THEY POURED FIVE SHOTS INTO THE YOUNG SINGER EVEN THOUGH HE SURVIVED THE SHOOTING COULD HAVE ENDED HIS CAREER MR LAWRENCE HAD NO MEDICAL INSURANCE AND AS RICK BLACKBURN HEAD OF ATLANTIC RECORDSNASHVILLE RECOUNTS IT HE WAS TAKEN TO A UNIVERSITY HOSPITAL THAT GAVE HIM ONLY CURSORY TREATMENT HE WAS DISCHARGED SIX DAYS LATER WITH A BULLET STILL LODGED IN HIS KNEE MR BLACKBURN STEPPED IN PERSONALLY TAKING MR LAWRENCE TO HIS OWN DOCTOR AND ARRANGING FOR SURGERY AT ANOTHER HOSPITAL THE LABEL ALSO STEPPED UP ITS SUPPORT FOR THE RECUPERATED SINGER AFTER RELEASING THE OBLIGATORY VIDEO MR BLACKBURN PERSONALLY HOSTED FOUR SHOWCASE PERFORMANCES TO INTRODUCE MR LAWRENCE TO DISK JOCKEYS AND THE PRESS HITTING ABOUT 50 RADIO STATIONS EACH IN MARKETS FROM ATLANTA TO LOS ANGELES MR HITCHCOCK OBSERVES THAT AFTER AN INITIAL PERIOD OF HOSTILITY RADIO NOW FEEDS OFF VIDEO PROMOTIONS MUCH AS HOLLYWOOD AND TELEVISION NOW FEED OFF EACH OTHER THE EFFORT PAID OFF IN SPADES SINCE HIS DEBUT MR LAWRENCE HAS HIT THE TOP OF THE BILLBOARD CHART WITH SEVEN SINGLES HIS ALBUM ALIBIS WENT PLATINUM LAST AUGUST THE INDUSTRY DESIGNATION FOR SALES OF MORE THAN ONE MILLION THE LOS ANGELESBASED ACADEMY OF COUNTRY MUSIC NAMED HIM THE BEST NEW MALE VOCALIST LAST YEAR HE HAS ALSO REMAINED ACCESSIBLE TO HIS AUDIENCE RECENTLY MARRYING A YOUNG LADY HE MET BACKSTAGE AFTER ONE OF HIS SHOWS IT WAS THE DREAM OF EVERY FEMALE FAN COME TRUE NOT JUST A LOCK OF HAIR BUT THE WHOLE STAR FOREVER FOR LAWRENCE HOWEVER THIS ULTIMATE ACT OF REACHING OUT TO HIS AUDIENCE DID NOTHING TO STOP THE NIGHTMARE OF FEAR THAT HIS CELEBRITY HAS BROUGHT HIM HE REMAINS ACUTELY AWARE OF THE DANGEROUS REACTIONS THAT COULD BE STIRRED BY HIS APPEAL TO THE EMOTIONAL LONGING OF HIS FOLLOWERS IF ONE OF THEM COULD GRAB HIM WHY NOT ALL THE OTHERS MR ADAMS IS A FORMER JOURNAL EDITORIAL WRITER 9403290080 940329 BUSINESS BRIEF BCE INC LOWER PRICE IS SET FOR STAKE OF 30 IN JONES INTERCABLE BCE INC AND JONES INTERCABLE INC CONFIRMED THAT THEY ARE TRIMMING BY 5 THE AMOUNT BCE WILL PAY FOR A 30 STAKE IN JONES AS A RESULT OF NEW US CABLERATE RESTRICTIONS AS EXPECTED THE COMPANIES SAID BCE'S INTERNATIONALINVESTMENT UNIT WILL PAY 261 MILLION FOR ITS STAKE IN THE DENVERBASED CABLE COMPANY DOWN FROM THE 275 MILLION ORIGINALLY PLANNED THE BCE UNIT BELL CANADA INTERNATIONAL INC ALSO CONFIRMED THAT IT REMAINS COMMITTED TO INCREASING ITS INVESTMENT IN JONES TO 400 MILLION OVER TIME THE ADDITIONAL 139 MILLION WOULD HELP FINANCE JONES'S GROWTH AND MAINTAIN BCE'S STAKE AT 30 BCE SAID IT IS INVESTING 55 MILLION OF THE INITIAL 261 MILLION IMMEDIATELY ENABLING THE COMPANIES TO BEGIN THEIR BUSINESS AND GROWTH STRATEGIES FOR JONES BEFORE FORMAL COMPLETION OF THEIR ALLIANCE EXPECTED BY MIDSUMMER BCE MONTREAL IS CANADA'S BIGGEST TELECOMMUNICATIONS COMPANY 9403290079 940329 BUSINESS BRIEF ARMCO INC SHUTDOWN OF DIVISION IS SET WITH LAYOFFS TOTALING 1300 ARMCO INC SAID IT WILL TEMPORARILY SHUT DOWN ITS EMPIREDETROIT STEEL DIVISION FORCING A LAYOFF 1300 WORKERS AND A FIRSTQUARTER CHARGE OF 20 MILLION OR 19 CENTS A SHARE THE PARSIPPANY NJ SPECIALTY STEELMAKER SAID IT OPTED TO IDLE THE DIVISION AFTER A MAIN MOTOR DRIVE IN ITS BLOOMING MILL FAILED ADDING TO THE UNIT'S SUBSTANTIAL LOSSES A BLOOMING MILL PROCESSES INGOTS INTO SLABS EMPIREDETROIT ALREADY WAS LOSING MONEY DUE TO A HIGHCOST MANUFACTURING PROCESS AND TO HIGHER PRICES FOR SCRAP A RAW MATERIAL ARMCO WHICH HAS 6600 EMPLOYEES IS BUILDING A LOWCOST THINSLAB CONTINUOUS CASTER AT THE DIVISION'S MANSFIELD OHIO MILL THAT CASTER WILL MAKE SLABS DIRECTLY FROM HOT METAL SKIPPING THE INGOT STEP WHEN THE CASTER IS COMPLETE IN MID1995 ARMCO PLANS TO RECALL ABOUT 250 WORKERS FOR TRAINING AND COULD RECALL ANOTHER 600 AS THE UNIT DEVELOPS NEW BUSINESS THE SHUTDOWN IS TO BEGIN MAY 29 9403290078 940329 LEISURE & ARTS ON SPORTS THE PREZ AND OTHER HOGS SQUEAL IN TRIUMPH BY FREDERICK C KLEIN DALLAS LIKE MANY WHO ARE SUCCESSFUL IN SPORTS NOLAN RICHARDSON COACH OF THE UNIVERSITY OF ARKANSAS'S BASKETBALL REPRESENTATIVES NEVER TIRES OF PLAYING THE NO RESPECT THEME TO HEAR THE LOCKERROOM ELITE TELL IT YAWN AND YAWN RODNEY DANGERFIELD IS A VERITABLE PRINCE OF APPRECIATION COMPARED TO THEM BUT ON SUNDAY AFTERNOON AFTER HIS TEAM HAD BEATEN MICHIGAN HERE RICHARDSON HAD TO ADMIT THAT SOME RAYS OF SUNSHINE HAD FOUND THEIR WAY TO HIM THROUGH THE GLOOM I'M NAMED NATIONAL COACH OF THE YEAR THROUGH AN AWARD SPONSORED BY A DEODORANT AND AN ATLANTA CLUB THE PRESIDENT THE PRESIDENT AN ARKANSAS EXGOVERNOR WHO WAS ON HAND COMES AND HUGS ME AND WE WIN TO GET TO THE FINAL FOUR RICHARDSON BEAMED I'D SAY THAT WAS ONE HELLUVA DAY IT WAS THAT AND THEN SOME AND THERE MAY BE MORE TO COME THE 7668 VICTORY OVER MICHIGAN GAVE THE PIGGIES THE NCAA'S MIDWEST REGIONAL TITLE AND A TICKET TO SATURDAY'S NATIONAL SEMIFINAL ROUND IN CHARLOTTE NC THEY'LL PLAY ARIZONA THERE AND THE WINNER WILL PLAY THE WINNER OF THE DUKEFLORIDA GAME FOR THE CHAMPIONSHIP THE FOLLOWING MONDAY NIGHT OFF THE NO 1 POLL RANKING IT SOMEHOW WAS ACCORDED FOR MUCH OF THE REGULAR SEASON PAST ARKANSAS SHOULD GO TO NORTH CAROLINA FAVORED TO CAPTURE ITS FIRST NATIONAL CROWN IN THE HOOPS SPORT THAT WOULD BE NO MORE THAN PROPER OPINED THE COACH NO SHRINKING VIOLET WHOSE WARDROBE INCLUDES A PURPLE SUIT I'VE THOUGHT WE'VE HAD THE BEST TEAM SINCE PRACTICE STARTED IN NOVEMBER HE SAID WE'RE NOT FROM THE BIG 10 MICHIGAN'S CONFERENCE THE EXPERTS SAY THEY'RE THE BEST AND THEY'RE PRETTY SMART THE COMPUTERS SAY SO TOO BUT OUR KIDS HAVE HEART I'VE NEVER HEARD OF A COMPUTER THAT COULD CHECK A PERSON'S HEART EKGS TO THE CONTRARY NOTWITHSTANDING SUNDAY'S FRAY MIGHT INDEED HAVE BEEN DECIDED ON A VISCERAL LEVEL BEFORE THE 16200 PEOPLE IN REUNION ARENA INCLUDING THE AFOREMENTIONED PRESIDENT HIS WIFE HILLARY RODHAM C FIRST DAUGHTER CHELSEA AND A COUPLEHUNDRED GUYS WITH CORDS COMING OUT OF THEIR EARS THE SOUTHEASTERN CONFERENCE SQUAD RACED TO A BIG EARLY LEAD AND THEN WATCHED IT ALL BUT DISAPPEAR UNTIL REASSERTING THEMSELVES IN THE FINAL MINUTE THE DECISIVE TURN CAME WHEN HIS TEAM TRAILING 6871 AND ABOUT 20 SECONDS LEFT MICHIGAN'S 6FOOT8 GUARD JALEN ROSE WAS SHORT ON A THREEPOINT FIELD GOAL TRY AND ARKANSAS GUARD SCOTTY THURMAN WAS FOULED AFTER RETRIEVING THE BALL THURMAN SANK BOTH HIS FREE THROWS AND BACKCOURT MATE CLINT MCDANIEL WOULD MAKE THREE MORE AS MICHIGAN HACKED TO DELAY THE INEVITABLE WHAT WAS ON MY MIND ECHOED THURMAN OF HIS CLINCHING TOSSES JUST MAKING THE FREE THROWS WASN'T ROOM FOR ANYTHING ELSE HE ADDED ECHOING HIS COACH'S TUNE BUT NOT SOUNDING LIKE HIS TONGUE WAS IN HIS CHEEK I'M NOT SURE ANYBODY TRULY EXPECTED US TO BEAT A BIG 10 POWER LIKE MICHIGAN IT WASN'T MICHIGAN'S ORGANIZATIONAL TIE THAT MADE IT A FORMIDABLE FOE THOUGH IT WAS ITS LINEUP AND RECENT HISTORY IT INCLUDED FOURFIFTHS OF THE FROSH GROUP OF THREE YEARS AGO THAT HAD BEEN NCAA RUNNERS UP THE LAST TWO SEASONS GONE TO THE PROS IS CHRIS WEBBER THE FABBEST OF THE FIVE BUT THE FOUR WHO STUCK AROUND TO BE JUNIORS ROSE CENTER JUWAN HOWARD AND FORWARDS RAY JACKSON AND JIMMY KING WERE HANDFUL ENOUGH AND QUITE GRIZZLED FOR COLLEGIANS THEY'D DONNED THE MAIZE AND BLUE IN 101 GAMES BEFORE SUNDAY A CAREERANDAHALF IN THE DAYS WHEN THE SPORT WAS STILL REGARDED AS AN EXTRACURRICULAR ACTIVITY ROSE HAD BEEN THE WOLVERINE STAR HERETOFORE BUT HOWARD HAD STEPPED FORWARD IN THESE PLAYOFFS AND ALMOST STEPPED RIGHT OVER ARKANSAS HE SCORED 30 POINTS ON 11OF17 SHOOTING GRABBED 13 REBOUNDS AND WITH HELP FROM JACKSON LIMITED CORLISS WILLIAMSON THE BULLLIKE HOG STAR TO 12 POINTS EIGHT UNDER HIS SEASON'S AVERAGE FOR HIS PAINS THE 6FOOT10 CHICAGO NATIVE WAS NAMED THE REGIONAL'S MOST VALUABLE PLAYER THAT HOWARD KID WAS AWESOME RICHARDSON CONFIRMED EVERY TIME HE TOUCHED THE BALL SOMETHING GOOD HAPPENED FOR THEM BUT IF ARKANSAS COULDN'T STOP HOWARD IT COULD OUTNUMBER HIM JUST AS IT HAS MOST OF ITS FOES IN A CAMPAIGN THAT NOW NUMBERS 29 WINS AGAINST THREE DEFEATS FACING THE HOGS IN THE NINEYEAR RICHARDSON REGIME HAS MEANT FACING 10 OR 11 GUYS SEEMINGLY ALL AT ONCE EVERYBODY SHOOTS EVERYBODY HANDLES THE BALL AND THE DEFENSE ATTACKS IN HUMAN WAVES UNTIL OPPOSING TONGUES LOLL YOU SEE TEAMS UNRAVEL UNDER THE DEFENSIVE ONSLAUGHT RICHARDSON HAS DECLARED WE FEED OFF IT WE START TO FOAM AT THE MOUTH NOTHING OF THE SORT WAS OBSERVED SUNDAY BUT MICHIGAN WAS FORCED INTO 16 TURNOVERS AND EVEN WITH HOWARD'S STELLAR MARKSMANSHIP SHOT BUT 406 FROM THE FIELD WELL UNDER ITS SEASON'S AVERAGE THAT INCLUDED JUST THREE OF 17 SHOTS FROM BEYOND THE THREEPOINT ARC WHERE MANY COLLEGE GAMES ARE WON OR LOST THESE DAYS ARKANSAS BY CONTRAST WAS SUCCESSFUL POPPING AWAY FROM WHEREVER IN FACT ITS ACCURACY FROM THREEPOINT LAND 10 FOR 21 OR 476 WAS A TOUCH BETTER THAN FROM CLOSER IN 472 EVERY TIME MICHIGAN WOULD GRIND BACK FROM DEFICITS THAT TOTALED AS MANY AS 14 POINTS IN EACH HALF HOG GUARDS THURMAN MCDANIEL OR AL DILLARD WOULD DRILL A TREY AND SHOVE IT BACK DOWN THE HILL THURMAN A SOPHOMORE HAD 20 POINTS TO LEAD HIS TEAM DARNELL ROBINSON WHO AT 6FOOT11 AND 260 POUNDS LOOKS LIKE NO FRESHMAN I WENT TO SCHOOL WITH HAD 14 ALL FROM INSIDE STILL THINGS GOT CLOSE TOWARD THE END WITH MICHIGAN GETTING TO WITHIN TWO POINTS 6163 WITH 5MINUTES LEFT AND TO WITHIN THREE AT 103 AND ARKANSAS FANS THE PRESIDENT INCLUDED LOOKED AS MUCH RELIEVED AS ELATED AT THE END AFTER THE GAME HE AND RICHARDSON EXCHANGED HIGH FIVES AND EMBRACED ON COURT THEY'RE PALS THE FIRST FAN HAVING VISITED THE CAMPUS AT FAYETTEVILLE EARLIER IN THE SEASON TO MEET AND BE PHOTOGRAPHED WITH THE ARKANSAS COACHES AND PLAYERS HE WAS AS PROUD OF THE HOGS AS I WAS RICHARDSON SAID LATER WHEN YOU'RE A HOG YOU BLEED LITTLE PIGS OF COURSE IT'S BETTER NOT TO GET STUCK 9403290077 940329 BUSINESS BRIEF INDRESCO INC BUYBACK IS SET FOR HOLDERS OF FEWER THAN 100 SHARES INDRESCO INC SAID IT WILL BUY BACK ITS COMMON STOCK FROM HOLDERS OF FEWER THAN 100 SHARES A SPOKESMAN FOR THE DALLAS COMPANY A SUPPLIER OF EQUIPMENT FOR THE MINING AND CONSTRUCTION INDUSTRIES SAID FROM 1 TO 2 OF THE COMPANY'S 244 MILLION SHARES OUTSTANDING ARE INVOLVED AND IT WOULD COST THE COMPANY ABOUT 5 MILLION TO BUY BACK ALL OF THOSE SHARES PARTICIPATION IN THE BUYBACK IS OPTIONAL FOR HOLDERS INDRESCO SAID IT WILL PAY A PRICE PER SHARE EQUAL TO THE AVERAGE OF THE HIGHEST TRADING PRICES FOR INDRESCO COMMON STOCK REPORTED FOR THE DAYS FROM APRIL 1 1994 THROUGH MAY 3 1994 LESS A PROCESSING FEE OF 50 CENTS A SHARE INDRESCO SAID SHAREHOLDER COMMUNICATIONS CORP WILL MANAGE THE PROGRAM WHICH APPLIES TO HOLDERS OF RECORD MARCH 28 1994 AND EXPIRES MAY 3 1994 UNLESS EXTENDED BY INDRESCO IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE INDRESCO SHARES CLOSED AT 15 UP 375 CENTS 9403290076 940329 WHO'S NEWS TJ SYSTEMS CORP TJ SYSTEMS CORP HAUPPAUGE NY MICHAEL F DANIELS 45 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER MR DANIELS FORMERLY CHIEF OPERATING OFFICER SUCCEEDS TJ SYSTEMS FOUNDER THEODORE J ORLANDO WHO CONTINUES AS CHAIRMAN AND A DIRECTOR AT THE COMPANY OVERSEEING ITS CORPORATE AND FINANCIAL STRATEGIC PLANNING TJ SYSTEMS WHICH LEASES COMPUTER AND COMPUTERRELATED EQUIPMENT REPORTED 1993 REVENUE OF 132 MILLION 9403290075 940329 INTERNATIONAL BRIEF THOMSON SA COMPANY MUST SELL UP TO 8 OF ITS STAKE IN SUBSIDIARY THE HUGE LOSSES OF FRENCH STATECONTROLLED BANK CREDIT LYONNAIS IN 1993 WILL FORCE THOMSON SA TO SELL AS MUCH AS 8 OF ITS SHARES IN ITS DEFENSE AND ELECTRONICS SUBSIDIARY THOMSONCSF A SPOKESMAN FOR THOMSON SAID THOMSONCSF HAS A 216 SHARE HOLDING IN CREDIT LYONNAIS AND ITS 1993 EARNINGS WILL BE PUSHED INTO THE RED AFTER IT TAKES INTO ACCOUNT ITS SHARE OF THE BANK'S LOSS OF 69 BILLION FRANCS 121 BILLION IN 1993 THOMSON SA CURRENTLY CONTROLS 583 OF THOMSONCSF AND IT'S ENVISAGED THAT THIS STAKE SHOULD BE REDUCED BY AN AMOUNT THAT WOULD RAISE THE NECESSARY AMOUNT OF CASH WHILE ALLOWING THOMSON SA TO RETAIN CONTROL OF THE ARMS AND ELECTRONICS GROUP JUST OVER 41 OF THOMSONCSF'S CAPITAL IS HELD BY THE PUBLIC THOMSONCSF'S SHARE OF THE CREDIT LYONNAIS LOSS IS ESTIMATED AT MORE THAN 14 BILLION FRANCS 9403290074 940329 POLITICS & POLICY HILLARY CLINTON'S COMMODITIES BROKER WAS DISCIPLINED FOR VARIETY OF VIOLATIONS BY JEFFREY TAYLOR AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL HILLARY RODHAM CLINTON'S COMMODITIES BROKER WAS DISCIPLINED BY REGULATORS FOR A VARIETY OF WRONGDOING BOTH BEFORE AND AFTER MRS CLINTON'S SUCCESSFUL FORAY INTO CATTLEFUTURES TRADING IN THE LATE 1970S ROBERT L RED BONE MRS CLINTON'S BROKER AT THE SPRINGDALE ARK OFFICE OF FUTURES BROKERAGE FIRM REFCO INC WAS ACCUSED AMONG OTHER THINGS OF ALLOCATING TRADES TO INVESTORS IN HIS BRANCH OFFICE AFTER HE HAD DETERMINED WHETHER THE TRADES WERE WINNERS OR LOSERS REGULATORS SAY OUR CONCERN AT THE TIME WAS THAT HE COULD HAVE BEEN ALLOCATING TRADES SAID JOHN TROELSTRUP THEN A VICE PRESIDENT IN CHARGE OF COMPLIANCE AT THE CHICAGO MERCANTILE EXCHANGE WHERE MRS CLINTON'S CATTLEFUTURES TRADES WERE PROCESSED WE HAD OCCASIONAL COMPLAINTS FROM CUSTOMERS AT THE REFCO SPRINGDALE OFFICE AND SOME OF THOSE COMPLAINTS MADE ALLEGATIONS ABOUT ALLOCATIONS OF LOSING TRADES TO THEIR ACCOUNTS IN DECEMBER 1979 THE CHICAGO MERC DISCIPLINED MR BONE FOR SERIOUS AND REPEATED VIOLATIONS OF RECORDKEEPING FUNCTIONS ORDERENTRY PROCEDURES MARGIN REQUIREMENTS AND HEDGE PROCEDURES THE ACTION AGAINST MR BONE WAS FIRST REPORTED BY SECURITIES WEEK A NEWSLETTER PUBLISHED BY MCGRAW HILL MR BONE AGREED AT THE TIME TO A THREEYEAR SUSPENSION OF HIS MERC REGISTRATION AS A COMMODITY BROKER THE COMMODITY FUTURES TRADING COMMISSION THE MERC'S FEDERAL REGULATOR ALSO DISCIPLINED MR BONE TWICE FOR VARIOUS INFRACTIONS BUT MR TROELSTRUP NOW AN ATTORNEY IN PRIVATE PRACTICE SAID THE MERC RECEIVED NO ALLEGATION THAT MRS CLINTON WHO WAS A NOVICE TO COMMODITY TRADING DIRECTLY BENEFITED FROM ALLOCATION OF PROFITABLE TRADES TO HER REFCO ACCOUNT DURING THE PERIOD WHEN SHE EARNED ABOUT 98000 TRADING CATTLE CONTRACTS MR BONE COULDN'T BE REACHED FOR COMMENT IN AN INTERVIEW JAMES BLAIR GENERAL COUNSEL FOR TYSON FOODS INC SAID THAT MRS CLINTON STARTED TRADING CATTLE FUTURES AT HIS SUGGESTION BECAUSE HE HIMSELF HAD MADE MONEY IN THE CATTLE MARKET BUT MR BLAIR STRONGLY DENIED THAT MRS CLINTON BENEFITED FROM ALLOCATION OF PROFITABLE TRADES TO HER ACCOUNT WHILE LOSING CATTLE TRADES WERE DUMPED IN OTHER INVESTORS' ACCOUNTS IT COULDN'T HAVE HAPPENED MR BLAIR SAID SHE'D TAKE A POSITION SHE'D GET A CONFIRMATION AND SHE'D CLOSE IT OUT MAYBE WHEN I ADVISED HER TO DO SO MAYBE NOT THE INTERVIEW WITH MR BLAIR SHED NEW LIGHT ON THE AMOUNT OF MONEY MRS CLINTON ACTUALLY INVESTED IN COMMODITIES MY RECOLLECTION IS SHE STARTED WITH AT LEAST 1000 MR BLAIR SAID ADDING THAT MRS CLINTON'S TRADES WERE RELATIVELY MODEST FIVE OR 10 CONTRACTS MRS CLINTON USED HER OWN MONEY AND ASSUMED THE FULL RISK OF HER TRADES SAID JOHN PODESTA A WHITE HOUSE AIDE SHE HAD THEN AND STILL HAS ABSOLUTELY NO KNOWLEDGE ABOUT HER BROKER'S ALLEGED ALLOCATION OF TRADES ANOTHER AIDE SAID THE WHITE HOUSE IS WORKING TO DETERMINE THE EXACT AMOUNT OF MRS CLINTON'S INVESTMENT THE SUCCESS OF MRS CLINTON WHO PARLAYED HER SMALL INVESTMENT INTO A 98000 PROFIT MAY HAVE RESULTED SIMPLY FROM GOOD TIMING AND GOOD ADVICE FROM MR BLAIR MR TROELSTRUP SAID BEING ON THE RIGHT SIDE OF THE MARKET AT THAT TIME WOULD HAVE BEEN EASIER FOR HAVING A CONTACT WITH A TYSON LAWYER MR TROELSTRUP SAID ACCESS TO THAT KIND OF ADVICE AND OPINION COULD HELP A NOVICE JUMP INTO THE MARKET AT THE RIGHT TIME AT THE TIME MR BLAIR WAS OUTSIDE COUNSEL TO TYSON WHICH THEN HAD NO CATTLE OPERATIONS MR BLAIR HAS SAID IT WAS HIS PERSONAL SUCCESS IN TRADING CATTLE FUTURES THAT PROMPTED HIM TO RECOMMEND THE INVESTMENT TO MRS CLINTON HIS FRIEND AND TENNIS PARTNER HE REFERRED HER TO MR BONE WHO WAS ALSO HIS BROKER HE SAID A MONTH BEFORE MRS CLINTON BEGAN TRADING CATTLE FUTURES IN 1978 MR BONE HAD COMPLETED A ONEYEAR PROHIBITION ON TRADING COMMODITIES FOR HIS OWN ACCOUNT HE HAD AGREED TO THE PROHIBITION TO SETTLE CFTC ALLEGATIONS THAT HE PARTICIPATED IN AN ATTEMPT TO MANIPULATE THE CHICAGO MERC'S EGGFUTURES MARKET IN 1970 THE CFTC LATER DISCIPLINED MR BONE A SECOND TIME ALLEGING THAT HE VIOLATED THE TERMS OF THE FIRST ONEYEAR PROHIBITION BY TRADING FOR PERSONAL PROFIT THROUGH ANOTHER BROKER'S ACCOUNT IN THE SECOND CFTC PROCEEDING MR BONE AGREED TO A 100000 FINE A ONEYEAR REVOCATION OF HIS BROKER'S LICENSE AND A THREEYEAR PERSONAL TRADING PROHIBITION 9403290073 940329 WHO'S NEWS HADSON CORP HADSON CORP IRVING TEXAS JE BUCK CANNON WAS NAMED A DIRECTOR AND CHAIRMAN FILLING A VACANCY LEFT SINCE THE ENERGY PRODUCTS AND SERVICES COMPANY'S DECEMBER ACQUISITION OF A UNIT OF SANTA FE ENERGY RESOURCES INC MR CANNON 60 YEARS OLD WAS A CONSULTANT TO AMERICAN OIL & GAS CORP THE COMPANY ALSO NAMED GREGORY G JENKINS PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER MR JENKINS 36 ALSO FILLS A POSITION VACANT SINCE THE ACQUISITION 9403290072 940329 MUTUAL FUNDS PILGRIM REIMBURSES FUND AT REQUEST OF DIRECTORS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PILGRIM GROUP IS TAKING THE UNUSUAL STEP OF REFUNDING 205000 TO ONE OF ITS MUTUAL FUNDS AT THE URGING OF THE FUND'S DIRECTORS INCLUDED IN THE MONEY REIMBURSED TO THE PILGRIM CORPORATE UTILITIES FUND WAS A CONSULTANT'S FEE THAT SHOULDN'T HAVE BEEN BILLED TO THE FUND THE DIRECTORS REQUESTED THE REIMBURSEMENT AFTER THEIR INVESTIGATION AND WE ACQUIESCED SAID THEODORE COHEN GENERAL COUNSEL OF PILGRIM GROUP A CLOSELY HELD LOS ANGELES FUND COMPANY THAT MANAGES 27 BILLION SHORTLY AFTER PILGRIM AGREED TO THE REIMBURSEMENT TWO INDEPENDENT DIRECTORS RESIGNED FROM THE BOARD OF THE PILGRIM CORPORATE UTILITIES FUND THE ACTIONS COME AT A TIME OF INCREASING SCRUTINY OF MUTUALFUND DIRECTORS NATIONWIDE JUST LAST WEEK SECURITIES AND EXCHANGE COMMISSION CHAIRMAN ARTHUR LEVITT TOLD A MUTUALFUND INDUSTRY CONFERENCE IN ARIZONA THAT MUTUALFUND DIRECTORS OUGHT TO BE ASKING TOUGH QUESTIONS ABOUT THE FUNDS THEY OVERSEE AT PILGRIM THE ISSUE SURFACED AMONG DIRECTORS LAST JULY SHORTLY AFTER HE RESIGNED PILGRIM'S FORMER PRESIDENT ROBERT GRUNBURG SENT A SET OF CORRESPONDENCE TO FUND DIRECTORS CHARGING THAT PILGRIM CORPORATE UTILITIES FUND HAD PICKED UP PART OF THE TAB FOR A CONSULTANT WHEN THE BILL INSTEAD SHOULD HAVE BEEN PAID OUT OF PILGRIM GROUP'S CORPORATE COFFERS THE PILGRIM UTILITIES FUND HAS SHRUNK TO 7 MILLION IN ASSETS AND RANKS AMONG THE MUTUALFUND INDUSTRY'S WORST PERFORMERS OVER THE PAST 10 YEARS PILGRIM'S MR COHEN SAID THE 205000 WHICH WAS FIRST DISCLOSED IN THE FUND'S ANNUAL REPORT INCLUDED 30000 TO CORRECT AN ACCOUNTING ERROR AND 105000 TO REFUND A PORTION OF THE CONSULTANT'S FEE THE REMAINING 70000 REPRESENTED PART OF THE COST OF INVESTIGATING THE MATTER THE NUMBERS SPEAK FOR THEMSELVES MR COHEN SAID I DON'T THINK THIS WAS A MAJOR DISCREPANCY THIS WAS A CONSULTING ARRANGEMENT THAT LASTED FOR FIVE YEARS MR COHEN SAID THE SEC WHICH REGULATES MUTUAL FUNDS LOOKED AT THE CONSULTINGFEE ARRANGEMENT DURING A RECENT ROUTINE EXAMINATION THE SEC DID NOT TAKE ANY ACTION THAT SUGGESTED THEY THOUGHT IT WAS IMPROPER MR COHEN SAID PILGRIM SAID IN A STATEMENT THAT INDEPENDENT DIRECTOR BENJAMIN KLEIN RESIGNED BECAUSE OF THE DEMANDS OF HIS GROWING BUSINESS THE OTHER INDEPENDENT DIRECTOR ELIOT KARASICK RESIGNED FOR HEALTH REASONS THE STATEMENT SAID MR KARASICK WOULDN'T DISCUSS IN DETAIL THE REASONS FOR HIS RESIGNATION I AM NOT GOING TO PUT MYSELF IN THE POSITION OF CASTING STONES HE SAID I FELT I COULD NO LONGER BE AS PRODUCTIVE AS I WANTED TO BE FOR THE SHAREHOLDERS MR KLEIN A UNIVERSITY OF CALIFORNIA AT LOS ANGELES ECONOMICS PROFESSOR WHO ALSO RUNS AN ECONOMICRESEARCH FIRM DIDN'T RETURN PHONE CALLS PILGRIM HIRED THE CONSULTANT ALAN C SNYDER TO HELP THE FIRM WITH ITS MARKETING AND DISTRIBUTION MR SNYDER HAS SINCE MOVED ON TO BECOME CHIEF EXECUTIVE OFFICER OF AURORA NATIONAL LIFE ASSURANCE CO A SUCCESSOR CORPORATION TO FAILED EXECUTIVE LIFE INSURANCE CO MR SNYDER DECLINED TO COMMENT THE 205000 REFUND TO PILGRIM CORPORATE UTILITIES IS THE LATEST IN A STRING OF CONTROVERSIAL ACTIONS INVOLVING PILGRIM GROUP WHICH IS HEADED BY PALOMBA WEINGARTEN PILGRIM'S MARKETING TACTICS HAVE DRAWN FIRE FROM BOTH COMPETITORS AND MUTUALFUND ANALYSTS LAST YEAR FOR INSTANCE FUND RESEARCHER MORNINGSTAR INC PUBLISHED A SCATHING ARTICLE ABOUT A PILGRIM ADVERTISEMENT PROMPTING PILGRIM TO SUE THE FIRM FOR LIBEL EARLIER THIS MONTH A CALIFORNIA STATE APPEALS COURT THREW OUT PILGRIM'S SUIT PILGRIM CORPORATE UTILITIES WILL LIKELY SOON DISAPPEAR PILGRIM GROUP RECENTLY SENT A LETTER TO SHAREHOLDERS SAYING THE FUND'S DIRECTORS HAD VOTED TO MERGE THE FUND INTO THE LEPERCQISTEL FUND A NEW YORKBASED GROWTHANDINCOME MUTUAL FUND THE MERGER HAS TO BE APPROVED BY THE PILGRIM FUND'S SHAREHOLDERS PILGRIM CORPORATE UTILITIES FUND SUSTAINED A LOSS OF 187 IN THE DECADE THROUGH FEBRUARY MAKING IT THE FUND INDUSTRY'S FIFTH WORST PERFORMING FUND ACCORDING TO MORNINGSTAR RESULTS AT LEPERCQISTEL FUND WITH 16 MILLION IN ASSETS HAVE BEEN BETTER THAN THAT BUT STILL NOT GREAT LAST YEAR THE FUND BEAT THE STANDARD & POOR'S 500STOCK INDEX FOR THE FIRST TIME IN 13 YEARS FOR THE 10 YEARS ENDED FEBRUARY IT RETURNED 1271 COMPARED WITH AN AVERAGE 235 FOR ALL GROWTHANDINCOME FUNDS AND 3218 FOR THE S&P 500 HISTORY IS HISTORY SAID ANDREW HANSON COPRESIDENT OF THE FUND THE ONLY THING THAT MATTERS IS THE FUTURE MR HANSON SAID HE AND A COLLEAGUE TOOK OVER MANAGEMENT OF THE FUND IN DECEMBER HE SAID THE PROPOSAL TO MERGE THE TWO FUNDS CAME FROM THE LEPERCQ FUND'S OUTSIDE COUNSEL WHO ALSO IS THE LAWYER FOR THE PILGRIM FUND THE BOARD OF DIRECTORS OF THEIR FUND FELT THAT THE INVESTMENT OBJECTIVE OF OUR FUND WILL MEET THE NEEDS OF THEIR SHAREHOLDERS MR HANSON SAID 9403290071 940329 WHO'S NEWS TNP ENTERPRISES INC TNP ENTERPRISES INC FORT WORTH TEXAS KEVERN R JOYCE 47 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS UTILITY HOLDING COMPANY AND ITS TEXASNEW MEXICO POWER CO UNIT FILLING POSITIONS THAT HAVE BEEN VACANT SINCE NOVEMBER THE COMPANY ALSO SAID MR JOYCE FORMERLY SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER OF TUCSON ELECTRIC POWER CO WILL BE NAMED TO THE BOARDS OF BOTH COMPANIES 9403290070 940329 KODAK TO ASK COMPUTER FIRMS FOR ALLIANCES REVAMP PLAN WILL SEPARATE COMPANY'S FILM LINE ELECTRONIC TECHNOLOGY BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO WILL SEEK ALLIANCES WITH MAJOR COMPUTER COMPANIES AND RECRUIT NEW TALENT AS IT RESTRUCTURES ITS CORE IMAGING BUSINESS TO EMPHASIZE ELECTRONIC TECHNOLOGY THE EXPECTED REORGANIZATION ANNOUNCED YESTERDAY WILL SEPARATE KODAK'S FILM BUSINESS FROM ITS NEWER ELECTRONIC TECHNOLOGY BUT THE ROCHESTER NY COMPANY'S PUSH TO EXPAND PRODUCTS SUCH AS DIGITAL FILMLESS CAMERAS PHOTO CD AND PHOTOGRAPHIC SOFTWARE COULD PROVE DIFFICULT FOR ONE THING KODAK MUST LEARN TO PLAY BALL IN SILICON VALLEY WHERE THERE'S A DIFFERENT CULTURE AND WAY OF DOING BUSINESS AND IT MUST RELAX ITS TRADITIONAL VISELIKE GRIP ON PRODUCTS AND CULTIVATE A MARKETING STAFF THAT INSTEAD OF INSISTING ON ROYALTIES IS WILLING TO TRADE TECHNOLOGIES THIS HAS BEEN DIFFICULT FOR US IN THE PAST SAID JACK THOMAS WHO FOR NOW WILL OVERSEE BOTH THE DIGITAL AND TRADITIONAL FILM SIDES OF KODAK'S IMAGING THAT'S ONE REASON WE ARE FORMING THIS UNIT TO PUT A TEAM INCLUDING MARKETERS INTO PLACE TO FUNCTION BY THE RULES OF THE ELECTRONIC INDUSTRY WE ARE MOVING INTO KODAK IS SEARCHING FOR A GENERAL MANAGER TO OVERSEE ITS NEW DIGITAL AND APPLIED IMAGING UNIT THE REORGANIZATION MARKS THE FIRST MAJOR IMPRINT OF KODAK'S NEW CHIEF EXECUTIVE OFFICER GEORGE FISHER ON THE COMPANY'S STRUCTURE HE SAID THAT ALTHOUGH FILM WILL CONTINUE TO BE KODAK'S CHIEF MONEYMAKER FOR YEARS ELECTRONICS OFFERS FAR MORE SUBSTANTIAL GROWTH OPPORTUNITIES IN A RECENT INTERVIEW MR FISHER SAID HE WILL DEPEND ON JOINT VENTURES PARTICULARLY WITH THE COMPUTER COMPANIES HE HOPES TO WOO WITH KODAK'S IMAGING REPUTATION ALREADY KODAK HAS DEVELOPED A DIGITAL CAMERA WITH APPLE COMPUTER INC AND IT CONTINUES EXPANDING ITS COPIER ALLIANCE WITH CANON INC'S CANON COPIERS USA MOREOVER WITH MR FISHER'S TALK OF COMMUNICATING IMAGES AROUND THE WORLD POTENTIAL ALLIANCES WITH CABLE AND TELEPHONE COMPANIES SEEM INEVITABLE INDUSTRYWATCHERS SAY AS MR FISHER NOTES OUR COMPETITORS AND OUR PARTNERS ARE THE SAME STILL KODAK ISN'T WITHOUT ITS OWN TECHNOLOGICAL KNOWHOW IN THE 1980S THE COMPANY SPENT HUNDREDS OF MILLIONS OF DOLLARS DEVELOPING DIGITAL TECHNOLOGY TO WARD OFF THE SONYS OF THE WORLD BUT BOTH THE FEAR OF CANNIBALIZING ITS FILM SALES AND A LACK OF MARKETING AND COMMERCIAL EXPERIENCE FOR DIGITAL PRODUCTS PARALYZED THE COMPANY WHEN IT CAME TIME TO GO TO MARKET KODAK NEEDS TO GET SOMEBODY IN THERE WHO RECOGNIZES THE WAY BUSINESS WORKS IN ELECTRONICS SAID SCOTT BROWNSTEIN WHO FRUSTRATED WITH KODAK'S DIGITAL PARALYSIS LEFT TO JOIN MEDIA MOGUL MORTIMER ZUCKERMAN'S APPLIED GRAPHICS TECHNOLOGIES INC LAST YEAR IT'S NOT ABOUT CORPORATE LOYALTY WHICH IS WHAT KODAK KNOWS IT'S ABOUT HAVING THE SAME PHILOSOPHY AS SOMEONE ELSE THAT MAKES DEALS WORK COST IS OF CONCERN KODAK'S DIGITAL TECHNOLOGY HASN'T BEEN A MONEYMAKER AND PROBABLY WON'T BE FOR SEVERAL YEARS MR THOMAS SAID IN ADDITION KODAK'S IMAGING GROUP LED BY ITS CASHCOW FILM DIVISION HAD PROFIT MARGINS OF AROUND 18 IN 1993 DOWN FROM 23 IN 1990 I WOULDN'T PREDICT THAT WE'D SEE A HIGHER MARGIN IN THE NEXT FEW YEARS MR THOMAS SAID IN FACT KODAK'S EARNINGS PEAKED IN 1988 WHEN ITS BIGGEST COMPETITOR FUJI PHOTO FILM CO OF TOKYO HAD ONLY A SMALL FOOTHOLD IN THE US BUT NOW FUJI AND PRIVATELABEL FILM MAKERS HAVE BECOME FIERCE COMPETITORS AND KODAK CAN NO LONGER RELY ON DOUBLEDIGIT GROWTH IN ITS FILM BUSINESS BUT IF MR FISHER CAN CONTROL COSTS MAKE THIS RESTRUCTURING WORK AND BOOST KODAK'S STOCK HE HIMSELF STANDS TO PROFIT HANDSOMELY IN ADDITION TO AN ANNUAL BASE SALARY OF 2 MILLION THE HIGHEST EVER FOR A KODAK CEO A SIGNING BONUS OF 5 MILLION AND MINIMUM INCENTIVE BONUS OF 1 MILLION FOR EACH OF THE NEXT TWO YEARS MR FISHER RECEIVED OPTIONS ON 1323000 SHARES OF KODAK THE OPTIONS PACKAGE POTENTIALLY COULD NET HIM 1065 MILLION IN PROFIT IF KODAK'S STOCK PRICE INCREASED AN AVERAGE OF 10 A YEAR FOR 10 YEARS FROM THE OPTIONS' ISSUING PRICE OF 5047 KODAK SHARES CLOSED YESTERDAY AT 45 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ADDITIONALLY MR FISHER HAS THE COMPANY PLANE AVAILABLE FOR PERSONAL USE A CAR AND DRIVER A RESIDENTIAL SECURITY SYSTEM AND ROCHESTER COUNTRY CLUB DUES PAID BY THE COMPANY ALL THIS COMES AT A TIME WHEN KODAK IS SLASHING NEARLY 10000 JOBS TO CUT COSTS AND BATTLING TENUOUS MORALE WITHIN THE RANK AND FILE IS THIS EXCESSIVE COMPENSATION ASKED JACK KELLY AN ANALYST WITH GOLDMAN SACHS I WOULD SAY IF HE TURNS THIS COMPANY AROUND REALIZES ITS EARNINGS POWER AND GETS THE STOCK UP THEN THE SHAREHOLDERS WON'T BEGRUDGE HIM THE MONEY AND THE EMPLOYEES WILL FEEL LIKE THEIR FEET ARE ON THE GROUND KODAK ALSO ANNOUNCED THAT IT WOULD STREAMLINE ITS US AND CANADIAN BUSINESS STRUCTURE A MOVE LONG CALLED FOR BY ANALYSTS AND INDUSTRY WATCHERS NOW US REGIONAL BUSINESS GENERAL MANAGERS WILL REPORT DIRECTLY TO THE WORLDWIDE BUSINESS GENERAL MANAGERS THE ROLE OF US AND CANADA GENERAL MANAGER HELD BY BOB HAMILTON WILL BE DISCONTINUED AND MR HAMILTON WILL BE MOVED TO ANOTHER POSITION 9403290069 940329 INTERNATIONAL BRIEF DAEWOO MOTOR CO SOUTH KOREAN AUTO MAKER DEVELOPS ELECTRIC PROTOTYPE DAEWOO MOTOR CO SOUTH KOREA'S THIRD LARGEST AUTO MAKER SAID IT DEVELOPED A PROTOTYPE ELECTRIC AUTOMOBILE THE COMPANY SUCCEEDED IN THE DEVELOPMENT BY EQUIPPING ITS LEMANVAN CAR MODEL WITH 22 RECHARGEABLE BATTERIES SAID A DAEWOO OFFICIAL WITH THIS DEVELOPMENT DAEWOO BECOMES THE THIRD KOREAN AUTO COMPANY TO DEVELOP AN ELECTRIC CAR FOLLOWING HYUNDAI MOTOR CO AND KIA MOTORS CORP THE ELECTRIC CAR CAN RUN A DISTANCE OF UP TO 150 KMS 93 MILES AT SPEEDS OF UP TO 140 KMS PER HOUR WITHOUT RECHARGING THE DEVELOPMENT WAS MEANT TO SATISFY REQUIREMENTS BY ADVANCED COUNTRIES FOR A CERTAIN RATIO OF POLLUTIONFREE CARS TO BE SOLD IN THEIR COUNTRIES FROM 1998 THE OFFICIAL SAID HE EXPECTS DAEWOO'S COMMERCIALIZATION OF THE PROTOTYPE ELECTRIC CAR TO BE COMPLETED BY 1996 9403290067 940329 LAW LEGAL BEAT JURY RULING BODES ILL FOR HOSPITALS WITH OTHER HEALTHCARE INTERESTS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL A JURY IN FEDERAL DISTRICT COURT SENT A WARNING TO HOSPITALS SEEKING TO EXPAND INTO THE HOMEMEDICALSUPPLY BUSINESS SUCH MOVES COULD VIOLATE ANTITRUST LAWS THE JURY IN PARKERSBURG WVA FOUND THAT AN AREA HOSPITAL HAD GAINED MONOPOLY POWER IN THE LOCAL MARKET FOR WHEELCHAIRS AND OTHER HOME MEDICAL EQUIPMENT BECAUSE OF ITS SPECIAL ACCESS TO PATIENTS IN THIS PARTICULAR CASE THOUGH THE JURY FOUND NO ANTITRUST VIOLATION BECAUSE THE HOSPITAL HADN'T INTENDED TO STIFLE COMPETITION NEVERTHELESS THE CASE CARRIES IMPORTANT IMPLICATIONS FOR THE NATION'S HOSPITALS WHICH INCREASINGLY ARE VENTURING INTO OTHER BUSINESSES SUCH AS HOME HEALTH CARE NURSING HOMES AND EQUIPMENT LEASING MANY HOSPITALS' OFFICIALS HAVE BEEN NERVOUS THAT COURTS MIGHT VIEW THESE ACTIVITIES AS ILLEGAL ATTEMPTS TO GAIN MONOPOLY POWER IN THE HEALTHCARE MARKET THE INDUSTRY HAS VIEWED ANTITRUST SUITS AS A POTENTIAL TRAP ANYTIME YOU GET INTO A BUSINESS OF THIS SORT SAID TOM CAMPBELL A LAWYER WITH THE CHICAGO FIRM GARDNER CARTON & DOUGLAS WHO ADVISES HOSPITALS ON ANTITRUST ISSUES EVERYONE'S SCARED TO DEATH LAWYERS SAY THE VERDICT IN WEST VIRGINIA WON'T ALLAY THOSE WORRIES DESPITE THE FACT THAT THE HOSPITAL PLEASANT VALLEY HOSPITAL INC WON THE CASE M&M MEDICAL SUPPLY & SERVICE INC A COMPETING EQUIPMENT DEALER THAT ISN'T OWNED BY A HOSPITAL ALLEGED THAT PLEASANT VALLEY ILLEGALLY COERCED ITS HOSPITAL PATIENTS INTO BUYING FROM ITS OWN EQUIPMENT SUBSIDIARY RATHER THAN FROM ITS COMPETITORS M&M ALSO SAID ITS GROSS REVENUE FELL BY MORE THAN 75 AFTER PLEASANT VALLEY ENTERED THE EQUIPMENT BUSINESS IN 1985 IF THE JURY HAD DETERMINED THAT PLEASANT VALLEY INTENDED TO SHUT OUT ITS COMPETITORS THE HOSPITAL WOULD HAVE BEEN FOUND IN VIOLATION OF ANTITRUST LAW THE CASE SHOWS THAT JURIES ARE WILLING TO FIND THAT HOSPITALOWNED MEDICAL BUSINESSES CAN POSSESS MONOPOLY POWER SAID WILLIAM KOPIT A WASHINGTON LAWYER WITH THE FIRM EPSTEIN BECKER & GREEN WHO REPRESENTED PLEASANT VALLEY THAT PRESENTS AN ENORMOUS LEGAL RISK FOR HOSPITALS THAT DIVERSIFY BECAUSE OTHER JURIES MIGHT BE LESS SYMPATHETIC TO HOSPITALS' CLAIMS THAT THEY DIDN'T INTENTIONALLY FORCE OUT THEIR COMPETITORS MR KOPIT SAID IT'S A RISK THAT PROBABLY EXCEEDS THE VALUE OF GOING INTO THE BUSINESS HE ADDED JAMES BURT A SPRINGFIELD MO LAWYER FOR M&M AGREED THAT DESPITE PLEASANT VALLEY'S WIN THE VERDICT COULD BE A BAD OMEN FOR HOSPITALS A JURY SOMEWHERE ELSE COULD FIND THE SAME CONDUCT TO HAVE CROSSED THE LINE HE SAID MR BURT SAID M&M WON'T APPEAL THE DECISION SOME ANTITRUST LAWYERS WERE MORE INCLINED TO EMPHASIZE PLEASANT VALLEY'S VICTORY HOWEVER THE DECISION IS A SECURITY BLANKET THAT SHOWS HOSPITALS THAT THESE CASES ARE WINNABLE SAID JEFF MILES AN ANTITRUST LAWYER AT OBER KALER GRIMES & SHRIVER IN WASHINGTON BUT HE ADDED WHETHER HOSPITALS WANT TO PAY THE PRICE TO WIN THESE BATTLES IS ANOTHER QUESTION BECAUSE THE LITIGATION IS VERY EXPENSIVE FAMILIES OF CHILDREN INJURED BY VACCINES CAN SUE FOR DAMAGES EVEN AFTER THE CHILD IS COMPENSATED THROUGH A SPECIAL FUND FOR VACCINE VICTIMS A FEDERAL APPEALS COURT RULED PEOPLE WHO RECEIVE VACCINES RUN A VERY SMALL RISK OF BECOMING ILL OR EXPERIENCING DANGEROUS SIDE EFFECTS AMERICAN CYANAMID CO THE DEFENDANT IN THE CASE HAD ARGUED THAT ONCE AN INJURED CHILD IS COMPENSATED THROUGH THE SPECIAL CLAIMS PROCEDURE NO RELATED CLAIMS CAN BE SOUGHT IN COURT THE COMPANY MAINTAINED THAT ALLOWING FAMILY MEMBERS TO PURSUE ADDITIONAL CLAIMSSEEKING DAMAGES FOR LOSS OF COMPANIONSHIP FOR INSTANCE WOULD UNDERMINE THE SPECIAL CLAIMS PROCESS THE CLAIMS PROCESS KNOWN AS THE VACCINE COURT WAS SET UP IN 1985 TO SPEED UP THE COMPENSATION OF VACCINE VICTIMS WHILE REDUCING THE COST OF LITIGATION TO DRUG COMPANIES THE FIRST US CIRCUIT COURT OF APPEALS IN BOSTON REJECTED THE COMPANY'S ARGUMENT THE COURT SAID THE LAW SETTING UP THE VACCINE VICTIMS' FUND BARS ONLY ADDITIONAL LAWSUITS BROUGHT ON BEHALF OF THE ACTUAL VICTIM THE DECISION LAST WEEK IS APPARENTLY THE FIRST ON THE MATTER BY A FEDERAL APPEALS COURT ALTHOUGH THE COURT SAID SIMILAR RULINGS HAVE BEEN MADE BY THE VACCINE COURT THE APPEALS COURT NOTED THAT THE VACCINECLAIMS PROCEDURE MAKES NO PROVISION FOR COMPENSATING FAMILY MEMBERS TO ACCEPT CYANAMID'S ARGUMENT WOULD REQUIRE US TO CONCLUDE THAT CONGRESS WITHOUT ANYONE SAYING A WORD ABOUT IT INTENDED TO DEPRIVE FAMILY MEMBERS OF ALL COMPENSATORY REMEDIES THE THREEJUDGE PANEL SAID THE CASE INVOLVED A CHILD WHO DEVELOPED POLIO AFTER RECEIVING A POLIO VACCINE DISTRIBUTED BY AMERICAN CYANAMID IN 1988 A SPOKESWOMAN FOR THE WAYNE NJ COMPANY SAID IT IS CONSIDERING A FURTHER APPEAL SHE SAID THE COMPANY BELIEVES THE DECISION DESTROYS THE INTENT OF A PROGRAM THAT WAS DESIGNED TO BE FAIR TO THE ALLEGED VICTIMS AND FAIR TO THE MANUFACTURER THE CHILD RECEIVED A 750000 AWARD FROM THE VACCINE COURT THE COURT SAID THE LEGISLATIVE HISTORY OF THE 1985 LAW GAVE NO INDICATION THAT SUCH CLAIMS ARE BARRED BY FAMILY MEMBERS THE COURT ALSO QUESTIONED WHETHER ALLOWING SUCH LAWSUITS WILL ACTUALLY LEAD TO A SIGNIFICANT INCREASE IN VACCINERELATED LITIGATION JOURNALISTS WORKING IN HUNGARY WHO WANT A FRONTPAGE SCOOP HAD BETTER WATCH THEIR PS AND QS AND CHECK THEIR QUOTES IF THEY WANT TO AVOID A COSTLY LIBEL SUIT OR EVEN A YEAR IN JAIL THAT'S WHAT LAWYERS ARE ADVISING JOURNALISTS AND EDITORS AMID A RASH OF LIBEL CASES THAT ARE FLOODING THE HUNGARIAN COURTS AND FORCING MEDIA PROFESSIONALS TO REEXAMINE THEIR ETHICAL CONDUCT CODES THE SURGE OF LIBEL SUITS PARALLELS THE CHANGE OF SYSTEM FOUR YEARS AGO UNDER COMMUNISM LIBEL LAWS EXISTED BUT WERE RARELY USED BECAUSE ALL NEWSPAPERS AND THE BROADCAST MEDIA WERE UNDER STRICT STATE CONTROL THERE WAS LITTLE CHANCE OF WINNING A CASE AGAINST THE OBEDIENT MOUTHPIECE OF THE PARTY TODAY DEMOCRACY AND A MARKET ECONOMY HAVE FOSTERED A PRIVATE PRINT MEDIA THAT IS CRITICAL AND WHICH CONSIDERS ITSELF A WATCHDOG OF PUBLIC MORALS AT THE SAME TIME POLITICIANS BUSINESSPEOPLE AND OTHERS IN THE PUBLIC EYE HAVE BECOME ACUTELY AWARE OF THE CONSEQUENCES OF A DAMAGED REPUTATION THE RESULT MORE DEFAMATION SUITS AND LIBEL LAW IN HUNGARY HAS BOTH CIVIL AND CRIMINAL ASPECTS IT HAS BECOME A KIND OF FASHION PEOPLE DO IT JUST FOR FUN TO SHOW THAT THEY HAVE COURAGE SAID MIKLOS BREITNER PUBLISHER OF NEPSZABADSAG THE FORMER COMMUNIST PARTY NEWSPAPER THAT IS NOW PRIVATE AND IS HUNGARY'S LARGEST INDEPENDENT DAILY MR BREITNER RECENTLY HIRED AN INHOUSE LIBEL LAWYER FOR THE FIRST TIME TO HANDLE ABOUT 30 CASES ANNUALLY UP FROM JUST A HANDFUL A FEW YEARS AGO ERZSEBET OROSZ A LIBEL LAWYER RETAINED BY HUNGARY'S LARGEST JOURNALIST TRADE UNION ALSO REPORTS AN UPSWING IN CASES SHE HAD 80 IN 1993 30 MORE THAN THE YEAR BEFORE THE BUDAPEST CITY COURT TRIED 600 SUCH CASES IN 1993 200 MORE THAN IN 1992 WADE LAMBERT IN NEW YORK AND ERNEST BECK IN BUDAPEST CONTRIBUTED TO THIS ARTICLE 9403290066 940329 WHO'S NEWS UNITED ASSET MANAGEMENT CORP UNITED ASSET MANAGEMENT CORP BOSTON CHARLES H SALISBURY 53 YEARS OLD AND GEORGE D MCCLELLAND 47 WERE NAMED TO SENIOR MANAGEMENT POSITIONS AND BOTH WILL SERVE AS SENIOR VICE PRESIDENTS MR SALISBURY HELD A VARIETY OF SENIOR POSITIONS AT T ROWE PRICE ASSOCIATES INC MR MCCLELLAND HAD BEEN WITH FMR CORP AND FIDELITY INVESTMENTS 9403290065 940329 WHO'S NEWS PRIMARK CORP PRIMARK CORP MCLEAN VA CONSTANCE K WEAVER WAS NAMED A DIRECTOR OF THIS INFORMATION TECHNOLOGY AND SERVICES COMPANY EXPANDING BOARD MEMBERSHIP TO SEVEN MS WEAVER IS A CORPORATE VICE PRESIDENT FOR MCI COMMUNICATIONS CORP 9403290064 940329 WHO'S NEWS MEDICAL GRAPHICS CORP MEDICAL GRAPHICS CORP ST PAUL MINN W EDWARD MCCONAGHAY SENIOR VICE PRESIDENT SALES AND MARKETING OF THE CHECK PRINTING DIVISION OF DELUXE CORP WAS ELECTED A DIRECTOR OF THIS MAKER OF DIAGNOSTIC EQUIPMENT INCREASING BOARD MEMBERSHIP TO EIGHT 9403290063 940329 TECHNOLOGY BRIEF INTEL CORP COMPANY SETS AGREEMENT ON CHIP ASSEMBLY IN CHINA INTEL CORP STAKING CLAIM IN CHINA'S FASTGROWING MARKET FOR PERSONAL COMPUTERS SAID IT HAS AGREED TO LET A CHINESE MANUFACTURER PERFORM FINAL ASSEMBLY ON UNFINISHED COMPUTER CHIPS UNDER THE AGREEMENT TO BE ANNOUNCED TODAY IN BEIJING INTEL THE SANTA CLARA CALIFBASED CHIP GIANT WILL CONTRACT WITH HUAJING ELECTRONICS GROUP A UNIT OF THE CHINA ELECTRONICS CORP TO TEST AND ASSEMBLE INTEL 386 SX MICROPROCESSORS DELIVERED IN WAFER FORM IN RETURN CHINA ELECTRONICS IS TO ADVOCATE INTEL AS THE PC CHIP OF CHOICE IN CHINA WHERE PERSONAL COMPUTERS ARE BEGINNING TO PROLIFERATE IN GOVERNMENT AND SCHOOLS SEVERAL USBASED PC COMPANIES ARE INCREASING THEIR PRESENCE IN CHINA INCLUDING AST RESEARCH INC IRVINE CALIF CHINA'S MARKET LEADER IN PC SALES 9403290062 940329 REVIEW & OUTLOOK EDITORIAL FINDING WAYS HOME FOSTER CARE FOR KIDS IN TROUBLE IS ANOTHER REASON WHY WE KEEP SAYING THAT THE NATION'S WELFARE PROBLEM IS BIGGER THAN THE DEBATE OVER AFDC AND WORK REQUIREMENTS SUGGESTS BEGINNING WITH THE DEMISE OF ORPHANAGES IN THE FIRST THIRD OF THIS CENTURY AND ESPECIALLY AFTER THE RISE OF CHILDABUSE SENSITIVITY IN THE LATE 1960S THIS GOVERNMENT PROGRAM FOR CHILDREN FROM UNFIT HOMES HAS BEEN A REGULAR IF NOT OFTEN SUCCESSFUL PART OF THE SOCIALSERVICE LANDSCAPE IT SENDS COURT WARDS TO PARENTS WHO HAVE CONTRACTED TO CARE FOR THEM UNTIL THE CHILDREN ARE ALLOWED TO RETURN HOME OR ARE SETTLED WITH APPROPRIATE FAMILIES IN AN IMPERFECT WORLD SOME PROVISION OF THIS SORT WILL ALWAYS BE NEEDED BUT NOW IT'S APPARENT THAT THIS OPTION HAS GOTTEN OUT OF HAND AFTER A STABLE STRETCH THROUGH THE EARLY 1980S THE QUICKENING DISSOLUTION OF WEAK HOUSEHOLDS CAUSED THE NUMBER OF SUBSTITUTECARE KIDS THOSE IN FOSTER AND GROUP HOMES AND SHELTERS TO RISE TO 442000 NATIONALLY BY 1992 UP FROM 262000 A DECADE EARLIER IN CALIFORNIA THE NADIR OF A ROOTLESS WELFARE CULTURE THE TREND IS EVEN MORE DRAMATIC NEARLY 90000 FOSTER CASES WERE OPEN AT THE END OF LAST YEAR VS 37563 IN 1983 WHERE A CHILD QUALIFIES UNDER WELFARE OR OTHER FEDERAL DESIGNATIONS LOCAL OFFICIALS MAY DESIRE TO FOB THE CASE OFF ON US TAXPAYERS WHO WOULD CARRY MOST OF THE LOAD PAYMENTS TO FOSTER PARENTS GREW MORE THAN 10 TIMES IN CALIFORNIA FROM 197089 HOWEVER THE REAL PRICE OF FOSTER CARE EXCEEDS WHAT MAY BE A 10 BILLION ANNUAL TAB NATIONWIDE FORMER FOSTER CHILDREN ARE DISPROPORTIONATELY REPRESENTED IN JUVENILE AND ADULT PRISON POPULATIONS AMONG THE HOMELESS AND ON STATE ASSISTANCE ROLLS SAYS CONNA CRAIG PRESIDENT OF THE INSTITUTE FOR CHILDREN IN CAMBRIDGE MASS BY CONTRAST EVIDENCE SUGGESTS THAT CHILDREN OF SIMILAR BACKGROUNDS WHO ENJOY GREATER FAMILY PERMANENCY SUCH AS ADOPTEES FARE AS WELL AS THOSE WHO GROW UP WITH THEIR BIOLOGICAL PARENTS FOSTER CHILDREN TYPICALLY ARE ROUTED FROM HOME TO HOME OVER A PERIOD OF MONTHS AND EVEN YEARS AS THEY WAIT EITHER TO BE ADOPTED OR EMANCIPATED OR FOR THEIR NATURAL PARENTS TO SHAPE UP THE LAW CRITICS SUCH AS MS CRAIG ARGUE IS UNDULY INDULGENT OF LOUSY MOTHERS ONLY ABOUT 10 OF THOSE IN FOSTER CARE AT ANY ONE TIME ARE ELIGIBLE FOR ADOPTION AND THE EXPERIENCE IS PROBABLY LEAVING THE OTHERS WORSE OFF THAN WHEN THEY ENTERED THE SYSTEM WITH THE UPSURGE IN CRACK AND HIV BABIES THE NUMBER OF INFANTS COMING INTO THE PROGRAM HAS ALMOST DOUBLED IN THE PAST FIVE YEARS WITH THE BIAS TO PERPETUATION OF STATEARRANGED CUSTODY THIS MEANS A GOOD NUMBER OF TOTS ARE WALKING BEFORE THEY EVER HAVE A REAL HOME ABOUT 40 OF THE NATION'S FOSTER CHILDREN ARE BLACK THIS IS GREATLY A FUNCTION OF THE CONDITIONS OF THE URBAN UNDERCLASS AND THEREFORE TIED BACK TO THE AFDC QUESTION BUT TRAGICALLY CONTRIBUTING IS A DELIBERATE STRATEGY OF THE NATIONAL ASSOCIATION OF BLACK SOCIAL WORKERS ENDORSED BY THE NAACP'S EXECUTIVE COMMITTEE TO THWART THE ADOPTION OF THESE KIDS BY NONBLACK PARENTS WITHOUT THAT OUTLET THESE CHILDREN ARE BEING CONSIGNED TO 30 LONGER STAYS ON THE FOSTER CIRCUIT THAN NORMAL THE ASSOCIATION'S BELIEF THAT BLACKS RAISED BY WHITES LOSE THEIR SENSE OF IDENTITY IS REJECTED EVEN BY LEFTLIBERAL POLITICIANS DEMOCRATIC SENATORS HOWARD METZENBAUM AND CAROL MOSELEYBRAUN HAVE A BILL TO FORBID FEDERALLY FINANCED ADOPTION AGENCIES TO DISCRIMINATE BASED ONLY ON RACE IT PASSED THE SENATE LAST WEEK AND NOW MOVES OVER TO THE HOUSE ANOTHER SUSPECT FACTOR IS THE SPECIAL NEEDS CATEGORIZATION IMPOSED ON MANY FOSTER CHILDREN SOMETIMES BY VIRTUE SIMPLY OF THEIR AGE THIS CONTRIBUTES TO THE DUBIOUS NOTION THAT SOME KIDS IN THE PROGRAM ARE JUST NOT ADOPTABLE IN FACT THERE ARE WAITING LISTS FOR VIRTUALLY ALL MANNER OF YOUNGSTERS ENCOURAGING EARLIER ADOPTION COULD SAVE TAXPAYERS A BILLION DOLLARS A YEAR ACCORDING TO MS CRAIG IT COULD ALSO BREAK THE CYCLE THAT HAS MADE THIRDGENERATION FOSTER STATUS AN UNSURPRISING TRAIT AMONG TEENAGE MOTHERS THE BEST ANSWER TO RESTORING ORDER ON AMERICA'S STREETS AND IN ITS SCHOOLS IS A RENEWAL OF RESPONSIBILITY AMONG BIRTH PARENTS PLURAL A PROGRAM CALLED FAMILIES FIRST IN MICHIGAN IS OFFERING REMEDIATION IN THAT SPIRIT APART FROM PROGRESS THERE OR THE PRESENCE OF AN ADEQUATE EXTENDED FAMILY A REVIVAL OF ENLIGHTENED ORPHANAGES OR THE EXPEDITING OF ADOPTIONS WOULD SEEM IMPERATIVE TO DENY SOME KIND OF FOOTING FOR THESE DESPERATE KIDS IS AS CRUEL AS IT IS SOCIALLY DESTRUCTIVE BY FORGING A NEW CONSENSUS LEGISLATORS AND THINK TANKS ARE CLARIFYING THE POLICY CHOICES TO SHOW THAT TAX REFORM IS AT THE HEART OF HEALTH CARE REFORM 9403290061 940329 FOREIGN EXCHANGE LIRA WITH BERLUSCONI ELECTION VICTORY APPEARING LIKELY SURGES DOLLAR FALLS BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE ITALIAN LIRA SHRUGGED OFF ITS STATUS OF WHIPPING BOY AND FLEXED ITS MUSCLE YESTERDAY AS THE CONSERVATIVE ALLIANCE OF MEDIA MAGNATE SILVIO BERLUSCONI APPEARED ASSURED OF AN ELECTION VICTORY IN WHAT WAS ONE OF ITALY'S MOST IMPORTANT ELECTIONS SINCE WORLD WAR II PRELIMINARY EXIT POLLS SHOWED MR BERLUSCONI TRIUMPHING OVER HIS LEFTIST RIVALS AND WITHIN REACH OF THE ABSOLUTE MAJORITY HE NEEDS TO LEAD A UNITED GOVERNMENT THE DOLLAR'S BIGGEST MOVE OF THE DAY WAS ITS DROP TO 1630 LIRE IN LATE NEW YORK TRADING FROM 1649 LIRE LATE FRIDAY THE DOLLAR ALSO FELL AGAINST THE YEN ON EXPECTATIONS THAT JAPAN'S MARKETOPENING MEASURES TO BE RELEASED TODAY ARE ALMOST CERTAIN TO DISAPPOINT THE US THIS IS EXPECTED TO PROMPT RENEWED PRESSURE BY US OFFICIALS TO STRENGTHEN THE YEN AS A WAY TO SHRINK JAPAN'S HUGE TRADE SURPLUS WITH THE US THE US CURRENCY ROSE AGAINST A GENERALLY WEAK MARK WHICH TOOK A BATTERING ON A COMBINATION OF A TECHNICAL REBOUND FROM LAST WEEK'S GAINS WEAK GERMAN INFLATION DATA AND A FLURRY OF UNSUBSTANTIATED RUMORS ABOUT A COUP ATTEMPT ON RUSSIAN PRESIDENT BORIS YELTSIN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16715 MARKS UP FROM 16643 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10405 YEN DOWN FROM 10480 YEN STERLING WAS TRADING AT 14960 OFF FROM 14985 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 104 YEN AND AT 16715 MARKS BERLUSCONI'S APPARENT VICTORY ALTHOUGH IT MAY BE CLOUDED BY ITS SIZE IS BULLISH FOR THE ITALIAN MARKETS AND THE LIRA SAID DAVID DEROSA DIRECTOR OF FOREIGNEXCHANGE TRADING FOR SWISS BANK CORP IN NEW YORK THE LIRA HAD BEEN PUMMELED MERCILESSLY FOR MONTHS AS POLITICAL DIVISIONS AND CORRUPTION SCANDALS PLAGUED THE ITALIAN GOVERNMENT WHERE MORE THAN A QUARTER OF PARLIAMENT MEMBERS AND FORMER PREMIER BETTINO CRAXI ARE UNDER INVESTIGATION CRUSHING INVESTOR CONFIDENCE IN ITALY THE LIRA GAINED LARGELY AT THE MARK'S EXPENSE RIGHT FROM THE OPENING OF EUROPEAN TRADING THE MARK WAS HOVERING AT AROUND 990 LIRE AS LONDON OPENED THEN SUDDENLY FELL INTO 975LIRE TERRITORY THE MARKET ISN'T STUPID AND IT SENSED A WIN MR DEROSA SAID NOTING THAT THE MARKET SAW A CHANCE THAT POLITICAL SOLIDARITY AND LEADERSHIP COULD RETURN TO ITALY THAT BERLUSCONI WINS IS GOOD THAT HE MAY WIN AN ABSOLUTE MAJORITY IS BETTER HE SAID ADDING THAT THE MARKET HAD LITTLE PREFERENCE OVER WHO THE WINNER WOULD BE AS LONG AS HE CAME THROUGH WITH A MANDATE TO LEAD THE MARK TRADED AT 975 LIRE LATE YESTERDAY IN NEW YORK DOWN FROM 988 LIRE LATE FRIDAY MEANWHILE THE US CURRENCY TEETERED AGAINST THE YEN ON RENEWED WORRIES OVER SIMMERING USJAPANESE TRADE TENSIONS JAPAN IS EXPECTED TO ANNOUNCE TODAY A SERIES OF MEASURES TO OPEN ITS MARKETS AND CHOP ITS TRADE SURPLUS BUT MARKET EXPECTATIONS ARE LOW SAID BOB NEAR VICE PRESIDENT AT THE BANK OF NEW YORK THERE'S NOTHING THE JAPANESE CAN DO TO SATISFY THE AMERICAN POSITION UNLESS THEY AGREE ON NUMERICAL TARGETS AND WHY SHOULD THEY COME OUT OF NOWHERE AND DO THAT HE ASKED MR NEAR ADDED THAT IF THE TRADE MEASURES AMOUNT TO AN EMPTY GESTURE THE DOLLAR COULD HEAD DOWN TOWARD 103 YEN PROVIDING THERE ISN'T ANY INTERVENTION BY THE BANK OF JAPAN TO PROP UP THE DOLLAR THE SUSPICION IS THAT THERE WILL BE A LOT OF PLATITUDES AND A LOT OF WORDS SPOKEN BUT WHEN YOU PEEL IT ALL APART THERE'LL BE NOTHING THERE MR NEAR SAID 9403290060 940329 WOMEN IN MANAGEMENT A WAITING GAME DO WOMEN HELP WOMEN DON'T BET ON SOME AT TOP WOMEN CAN'T BLAME THEIR CAREER WOES ON MEN ALONE COMPANIES OWNED OR RUN BY WOMEN CAN BE POSITIVELY ANTEDILUVIAN WHEN IT COMES TO HIRING OR PROMOTING WOMEN INTO MANAGEMENT POSITIONS TURTLE WAX INC FOR INSTANCE WHICH IS CHAIRED BY SONDRA HEALY HAD 115 FEMALE MANAGERS IN 1992 MUCH LOWER THAN OTHER COMPANIES IN THE EEOC CATEGORY THAT INCLUDES SOAP SPECIALTY CLEANERS AND PERFUME WHICH HAD 289 THE COMPANY SAYS COMPARING IT TO OTHER COMPANIES IN THIS CATEGORY IS UNFAIR AND MISLEADING BECAUSE THE INDUSTRY IS A VERY BROADBASED CLASSIFICATION TOOTSIE ROLL INC ALSO HAS FEW WOMEN IN MANAGEMENT 11 OUT OF 88 IN 1992 WHEN ASKED ABOUT THIS NUMBER CEO ELLEN GORDON AT FIRST EXPRESSED SHOCK AND WORRY LATER SHE ASCRIBED TOOTSIE ROLL'S LOW FIGURES TO THE WAY THE COMPANY FILLS OUT EEOC FORMS MORE CONSERVATIVELY THAN OTHER CANDY COMPANIES SHE SAYS SHE KNOWS OTHER CONCERNS COUNT FOREMEN AS MANAGERS WHICH TOOTSIE ROLL DOESN'T DO ALMOST ALL THE WOMENRUN FIRMS THAT SCORED LOW HAD BEEN INHERITED INCLUDING TOOTSIE ROLL TURTLE WAX COLUMBIA SPORTSWEAR CO JOCKEY INTERNATIONAL INC MEANING THAT SOME OF THESE WOMEN NEVER HAD TO EXPERIENCE THE OFTEN LONG HARD CLIMB TO THE TOP MS HEALY FOR EXAMPLE BEGAN HER CAREER TEACHING DRAMA IN A WILMETTE ILL SCHOOL AND THEN BECAME VICE PRESIDENT OF PUBLIC RELATIONS AT AGE 24 IN HER EARLY THIRTIES SHE BECAME CHAIRMAN ESPRIT DE CORP ON THE OTHER HAND IS BRIMMING WITH WOMEN FROM TOP TO BOTTOM BESIDES SUSIE TOMPKINS THE COMPANY'S 51YEAROLD COFOUNDER WOMEN HOLD FOUR OF THE COMPANY'S SIX VICEPRESIDENT POSTS FEMALES COMPRISE 694 OF MANAGEMENT POSITIONS MUCH HIGHER THAN THE AVERAGE 373 IN ITS INDUSTRY THIS WOMEN'S APPAREL COMPANY MAKES NO SPECIAL EFFORTS TO RECRUIT WOMEN IT DOESN'T HAVE TO OF 5200 UNSOLICITED APPLICATIONS THE COMPANY RECEIVED LAST YEAR 63 CAME FROM WOMEN SAYS DEBRA SISSON VICE PRESIDENT OF HUMAN RESOURCES MANY JOB APPLICANTS SAY THEY WANT TO WORK AT A WOMANOWNED COMPANY SHE ADDS THE COMPANY HAS AN EASIER TIME RETAINING WOMEN TOO MS SISSON SAYS IN PART BECAUSE THERE ARE SO MANY FEMALE MENTORS WOMEN ASSUME THAT IF THEY DO WELL THEY WILL BE PROMOTED MS TOMPKINS WHO BELIEVES MEN AND WOMEN HAVE DIFFERENT STRENGTHS SAYS SHE DOESN'T HAVE A PREFERENCE WHEN IT COMES TO HIRING RATHER SHE LOOKS FOR A MIX OF MEN AND WOMEN KIND OF LIKE A FAMILY SHE COMPARES RUNNING A BUSINESS TO RUNNING A HOUSE YOU CAN'T IMAGINE A HOUSE RUN ONLY BY MEN OR ONLY BY WOMEN SEE RELATED ARTICLE THE WAITING GAME WOMEN MAKE STRIDES BUT MEN STAY FIRMLY IN TOP COMPANY JOBS FEMALE MANAGEMENT GAINS ARE IMPEDED BY CULTURE STILL DOMINATED BY MALES FROM FORD MOTOR TO SARA LEE WSJ MARCH 29 1994 9403290059 940329 INTERNATIONAL MEXICO DETAINS SECOND SUSPECT IN ASSASSINATION FBI JOINS PROBE BY PAUL B CARROLL AND DIANNE SOLIS STAFF REPORTERS OF THE WALL STREET JOURNAL MEXICO CITY MEXICAN AUTHORITIES SAID THEY DETAINED A SECOND SUSPECT IN THE MURDER OF PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO A SPOKESMAN FOR THE ATTORNEY GENERAL'S OFFICE ALSO SAID THAT THE GOVERNMENT TOGETHER WITH THE US FEDERAL BUREAU OF INVESTIGATION WAS INVESTIGATING POSSIBLE LINKS BETWEEN THE MAN WHO HAS CONFESSED TO THE ASSASSINATION AND GROUPS IN SOUTHERN LOS ANGELES THE SPOKESMAN SAID SOME OF THE GROUPS ARE MEXICAN SOME MEXICANAMERICAN BUT DIDN'T HAVE ANY MORE DETAILS THE CONFESSED ASSASSIN HAS OCCASIONALLY LIVED IN LOS ANGELES WORKING IN A FACTORY AND HIS FATHER STILL LIVES THERE THE NEWS OF A POSSIBLE ACCOMPLICE OR OF POSSIBLE INVOLVEMENT BY SOME LARGER GROUP WILL LIKELY ADD TO THE NERVOUSNESS IN MEXICO AUTHORITIES HAD HOPED THAT THE MAN WHO HAS CONFESSED TO THE ASSASSINATION MARIO ABURTO MARTINEZ WAS A LONE CRAZED GUNMAN BECAUSE THAT SCENARIO WOULD HAVE REASSURED MEXICANS THE POSSIBILITY OF A CONSPIRACY HAD HOWEVER BEEN GROWING THE WALL STREET JOURNAL REPORTED YESTERDAY THAT MR ABURTO HAD TOLD A 16YEAROLD GIRL HE WAS WOOING THAT HE WAS PART OF SOME POLITICAL ORGANIZATION AND HAD DECIDED TO SOLVE A PROBLEM FOR IT THE GIRL ALSO SAID THAT THE 23YEAROLD MR ABURTO HAD TOLD HER THAT HE HAD SPENT FOUR MONTHS LATE LAST YEAR IN CHIAPAS SITE OF A REBELLION JAN 1 IT ISN'T KNOWN WHETHER THAT TRIP AMOUNTS TO MORE THAN A COINCIDENCE THE ATTORNEY GENERAL'S OFFICE SAID AUTHORITIES ARE HOLDING A MAN IDENTIFIED AS TRANQUILINO SANCHEZ BECAUSE A VIDEOTAPE APPEARED TO SHOW HIM CLEARING THE WAY FOR MR ABURTO WHO GOT SO CLOSE TO MR COLOSIO THAT HE MANAGED TO PLACE A GUN ALMOST UP AGAINST THE CANDIDATE'S HEAD BEFORE PULLING THE TRIGGER MEXICAN NEWSPAPERS REPORTED THAT MR SANCHEZ HAD LINKS TO A GENERAL WHO WAS IN CHARGE OF MR COLOSIO'S SECURITY SUCH A CONNECTION WOULD SUPPORT RUMORS THAT ARE LINKING THE ASSASSINATION TO HARDLINERS WITHIN THE RULING PARTY WHO ARE WORRIED THAT POLITICAL REFORM WILL THROW THEM OUT OF POWER BUT A GOVERNMENT SPOKESMAN DENIED THAT MR SANCHEZ WAS LINKED TO THE GENERAL DOMIRO GARCIA REYES HUGO MORALES THE SPOKESMAN FOR THE ATTORNEY GENERAL SAID MR SANCHEZ 60 YEARS OLD HAD BEEN HIRED BY A LOCAL OFFICIAL OF THE RULING PARTY TO HELP CONTROL THE CROWD OF 4000 GATHERED TO HEAR MR COLOSIO GIVE A SPEECH IN TIJUANA WEDNESDAY EVENING MR MORALES SAID THAT MR SANCHEZ IS A FORMER STATE JUDICIAL POLICEMAN MR MORALES ACKNOWLEDGED THAT OFFICIALS HAD DETAINED TWO OTHER MEN FOR QUESTIONING AND RELEASED THEM AFTER DECIDING THEY WEREN'T INVOLVED HE ALSO ADDED THAT THIS IS NOT A CONCLUDED INVESTIGATION THE SPOKESMAN DID PROVIDE ADDITIONAL DETAILS OF THE CONFESSION THAT MR ABURTO MADE TO AUTHORITIES HE QUOTED MR ABURTO AS SAYING THAT HE HAD BEEN PLANNING AN ASSASSINATION FOR YEARS AND HAD INITIALLY DECIDED TO GO AFTER PRESIDENT CARLOS SALINAS DE GORTARI MR MORALES SAID THERE IS NO DEFINITE LINK BETWEEN MR ABURTO AND ANYONE IN CHIAPAS BUT DID SAY AUTHORITIES WERE INVESTIGATING THAT POSSIBILITY WITH UNCERTAINTY HIGH IN MEXICO THE STOCK MARKET FELL ALMOST 3 YESTERDAY THE MARKET HAD DROPPED LESS THAN 1 ON FRIDAY FOLLOWING EXTENSIVE EFFORTS BY FINANCE OFFICIALS TO MAINTAIN CALM BUT MEXICO'S IPC INDEX DROPPED 7463 POINTS YESTERDAY TO 244615 THE PESO STAYED ABOUT FLAT AT 335 PESOS TO THE DOLLAR BUT TRADERS SAID THE CENTRAL BANK APPARENTLY NEEDED TO INTERVENE IN SMALL AMOUNTS TO KEEP THE CURRENCY STABLE WE DON'T HAVE THE CANDIDATE FROM THE PRI YET SAID SALVADOR SANCHEZ A DIRECTOR AT GRUPO FINANCIERO PROBURSA REFERRING TO THE RULING PARTY BY ITS SPANISH INITIALS HE ADDED THAT SHARE PRICES WILL STAY UNDER PRESSURE UNTIL A NEW CANDIDATE IS ANNOUNCED PROBABLY AFTER EASTER OTHER TRADERS HAVE ALSO BEGUN TO RAISE QUESTIONS ABOUT THE HEALTH OF THE ECONOMY WHICH GREW JUST 04 LAST YEAR AND WHICH HAS HAD TO DEAL WITH WILD UNCERTAINTY THIS YEARFROM THE JAN 1 UPRISING IN CHIAPAS TO THE RECENT KIDNAPPING OF ONE OF MEXICO'S BESTKNOWN BUSINESSMEN AND NOW TO THE MURDER OF THE MAN WHO WAS ALMOST CERTAIN TO WIN THE AUGUST PRESIDENTIAL ELECTION MR SANCHEZ ADDED HOWEVER THAT THE STOCKMARKET DROP WASN'T AS OMINOUS AS IT MIGHT HAVE BEEN BECAUSE THE DECLINE CAME IN LIGHT TRADING MANY MEXICAN BROKERS AND INVESTORS HAVE ALREADY TAKEN OFF FOR THE EASTER HOLIDAYS THERE IS LITTLE INFORMATION AVAILABLE ABOUT WHO WILL SUCCEED MR COLOSIO THE PROCESS BY WHICH MEXICO'S PRESIDENT CHOOSES A CANDIDATE TO SUCCEED HIM IS THE MOST OBSCURE IN MEXICO'S POLITICAL SYSTEM MEXICAN STOCKMARKET INVESTORS HAVE HAD TO DEAL WITH RUMORS AND COUNTERRUMORS EVER SINCE MR COLOSIO WAS KILLED WEDNESDAY NIGHT THE MOST PLAUSIBLE CANDIDATE THUS FAR IS ERNESTO ZEDILLO MR COLOSIO'S CAMPAIGN MANAGER MR ZEDILLO 42 YEARS OLD IS EVEN MORE LIKE PRESIDENT SALINAS THAN MR COLOSIO WAS MR ZEDILLO WHO HAS A DOCTORATE IN ECONOMICS FROM YALE UNIVERSITY AND IS SAID TO BE EXCEPTIONALLY BRIGHT WOULD BE A FAVORITE OF INVESTORS BECAUSE HE WOULD CARRY ON PRESIDENT SALINAS'S ECONOMIC PROGRAM MR ZEDILLO HOWEVER HAS NOT BEEN VERY CLOSE TO THE PARTY AND IS REPORTEDLY FACING SOME OPPOSITION FROM SENIOR PRI OFFICIALS AS PRESIDENT SALINAS HOLDS MEETINGS TRYING TO BUILD A CONSENSUS BEHIND A CANDIDATE HE MUST ALSO DEAL WITH THE FACT THAT THE NERVOUSNESS PERVADING MEXICO WILL REQUIRE A PRESIDENT WITH CONSIDERABLE POLITICAL SKILLS AND THAT MR ZEDILLO HAS YET TO DEMONSTRATE HE HAS THEM MR ZEDILLO RAN INTO CONTROVERSY AS EDUCATION SECRETARY UNDER PRESIDENT SALINAS AND CAUGHT SOME CRITICISM FOR THE SLOW START THAT MR COLOSIO'S CAMPAIGN HAD THE OTHER NAME SURFACING MOST OFTEN IS FERNANDO ORTIZ ARANA THE PRESIDENT OF THE PRI MR ORTIZ ARANA HAS MORE POLITICAL EXPERIENCE THAN MR ZEDILLO BUT LITTLE ECONOMIC BACKGROUND 9403290058 940329 TOP COURT SEEMS SKEPTICAL OF CHALLENGES TO CALIFORNIA'S TAXES ON MULTINATIONALS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON COMPANIES CHALLENGING CALIFORNIA'S AGGRESSIVE APPROACH TO TAXING MULTINATIONAL FIRMS GOT A MOSTLY SKEPTICAL HEARING AT THE SUPREME COURT THE CASE WHICH WAS ARGUED BEFORE THE JUSTICES YESTERDAY COULD HAVE MAJOR FINANCIAL IMPLICATIONS FOR CORPORATIONS BASED IN THE US AND ABROAD CALIFORNIA OFFICIALS HAVE WARNED THAT AN UNFAVORABLE RULING COULD FORCE THE STATE TO REFUND AS MUCH AS 4 BILLION TO CORPORATIONS WHILE MOST OF THE JUSTICES WHO PARTICIPATED IN QUESTIONING THE LAWYERS SEEMED DUBIOUS OF THE CONSTITUTIONAL ATTACK ON CALIFORNIA'S TAX METHOD SUCH INDICATIONS AREN'T DEFINITIVE AND SOMETIMES EVEN ARE MISLEADING THE JUSTICES NOW WILL DISCUSS THE CASE PRIVATELY AND ONE OR MORE OPINIONS WILL BE DRAFTED A PROCESS THAT SOMETIMES LEADS MEMBERS OF THE COURT TO CHANGE THEIR VIEWS A DECISION IS EXPECTED BY LATE JUNE YESTERDAY'S ARGUMENTS APPEARED FROM THE OUTSET TO ILLUSTRATE THE HIGH COURT'S PREFERENCE THAT UNHAPPY MULTINATIONAL TAXPAYERS TAKE THEIR COMPLAINTS TO CONGRESS RATHER THAN TO THE COURTS AND INDIVIDUAL JUSTICES NOTED REPEATEDLY THAT CONGRESS HAS DECLINED INVITATIONS OVER THE YEARS TO BAN CALIFORNIA'S APPROACH CONGRESS CAN DO A MUCH BETTER JOB OF ADJUSTING THE BALANCE ON QUESTIONS AFFECTING CORPORATE TAXATION AND INTERNATIONAL COMPETITION JUSTICE DAVID SOUTER SAID AT ONE POINT CALIFORNIA TAXES A PORTION OF THE WORLDWIDE INCOME OF MULTINATIONAL COMPANIES INCLUDING THAT OF PARENT COMPANIES AND OTHER AFFILIATES BASED ON A FORMULA REFLECTING THE AMOUNT OF BUSINESS THE COMPANIES DO IN CALIFORNIA BY CONTRAST THE FEDERAL GOVERNMENT AND MOST OTHER STATES TREAT US SUBSIDIARIES OF MULTINATIONALS AS SEPARATE CORPORATIONS AND TAX ONLY THE INCOME OF THE UNITS UNDER PRESSURE FROM THE CLINTON ADMINISTRATION CALIFORNIA AMENDED ITS TAX LAW LAST SEPTEMBER TO ALLOW MULTINATIONALS TO SIDESTEP THE CONTROVERSIAL RULES THE CHANGE ALLOWS UNITS OF FOREIGN MULTINATIONALS TO CHOOSE TO BE TREATED AS SEPARATE COMPANIES BUT BARCLAYS BANK PLC THE BRITISH MULTINATIONAL THAT HAD FILED SUIT AGAINST CALIFORNIA PERSISTED IN ASKING THE JUSTICES TO INTERVENE BARCLAYS SAID THE HIGH COURT SHOULD STRIKE DOWN THE UNDERLYING LAW SO THAT MULTINATIONALS CAN SEEK REFUNDS OF TAXES PAID BEFORE THE RECENT AMENDMENT BARCLAYS ALSO ARGUED THAT WITHOUT A HIGH COURT RULING THE AMENDMENT COULD BE RESCINDED AND OTHER STATES COULD ADOPT THE CALIFORNIA APPROACH AT LEAST SIX OTHER STATES IDAHO MONTANA NORTH DAKOTA ALASKA TENNESSEE AND UTAH USE AN APPROACH THAT IS SIMILAR AT LEAST IN PART TO CALIFORNIA'S ACCORDING TO BARCLAYS THE SUPREME COURT CONSOLIDATED THE BARCLAYS CASE WITH A CHALLENGE TO THE CALIFORNIA LAW FILED BY COLGATEPALMOLIVE CO A NEW YORKBASED MULTINATIONAL THAT DOES BUSINESS IN CALIFORNIA THIS ACTION HAD PROMPTED SPECULATION THAT THE JUSTICES WERE RETHINKING A 1983 RULING IN WHICH THE HIGH COURT UPHELD APPLICATION OF CALIFORNIA'S SOCALLED WORLDWIDE UNITARY METHOD TO USBASED MULTINATIONALS BUT YESTERDAY MOST MEMBERS OF THE HIGH COURT SEEMED LEERY OF ARGUMENTS MADE BY LAWYERS FOR BOTH BARCLAYS AND COLGATEPALMOLIVE JUSTICE JOHN PAUL STEVENS FOR EXAMPLE SAID HE DIDN'T UNDERSTAND BARCLAYS'S SOMEWHAT TECHNICAL CONTENTION THAT CALIFORNIA'S APPROACH CAUSES SOME MULTINATIONALS TO GET TAXED TWICE ON THE SAME INCOME IN RESPONSE THE BANK'S LAWYER JOANNE GARVEY ADMITTED I'M NOT SURE I DO EITHER JUSTICE STEVENS IT'S A COMPLEX POINT SHE STILL INSISTED THAT THE BANK HAD BEEN DOUBLETAXED IN ANSWER TO CONTENTIONS THAT CALIFORNIA HAS INTERFERED WITH US RELATIONS WITH ITS TRADING PARTNERS CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES SOUTER AND RUTH BADER GINSBURG STRESSED THAT THE US HASN'T SIGNED A TREATY OR OTHERWISE COMMITTED ITSELF FORMALLY TO BAN STATES FROM USING THE WORLDWIDE UNITARY METHOD MULTINATIONALS NOTED THAT THE EXECUTIVE BRANCH UNDER RONALD REAGAN AND GEORGE BUSH BACKED THEM IN OPPOSING CALIFORNIA'S TAXING APPROACH BUT THAT ARGUMENT WAS UNDERCUT BY THE CLINTON ADMINISTRATION WHICH SUPPORTED CALIFORNIA'S POSITION ALBEIT WITH A TENTATIVE NARROWLY WORDED DEFENSE 9403290057 940329 REVIEW & OUTLOOK EDITORIAL JARDINE'S MOVE THE MURMUR FOR MONTHS AROUND HONG KONG HAS BEEN THAT JARDINE MATHESON IS A BIT OF A STICKINTHEMUD THE VENERABLE TRADING HOUSE RECENTLY HAS BEEN DICKERING WITH BOTH HONG KONG'S MARKET REGULATORS AND THE GOVERNMENT IN CHINA NOW COMES WORD THAT THE FIRM WILL PULL ITS LISTING OFF THE HONG KONG STOCK EXCHANGE THIS TENSION OVER CONTROL AND MARKETS LOOKS TO US LIKE A TALE FOR OUR TIMES JARDINE HAS LIVED THROUGH SEVERAL PREVIOUS GLOBAL FRENZIES OVER THE SEEMING RICHNESS OF THE CHINA MARKET NO DOUBT SOMEBODY AROUND THE OFFICE WOULD BE ABLE TO REMIND YOU THAT LONG BEFORE THE OPEN DOOR BECAME A SLOGAN OF DENGISM IT WAS A PRINCIPLE ENUNCIATED BY US SECRETARY OF STATE JOHN HAY HIS GOAL WAS TO SECURE EQUAL TRADING RIGHTS IN CHINA FOR ALL COUNTRIES OF COURSE BUT ALSO TO BLOCK MOVES BY OTHER POWERS TO DISMEMBER CHINA INTO SEPARATE ECONOMIC ZONES THAT WAS ALMOST A CENTURY AGO FUNNY HOW THE FUNDAMENTAL CHALLENGES OF CULTURE AND GEOGRAPHY HAVE A WAY OF NEVER QUITE BEING LAID TO REST SOME INKLING OF HISTORY PERHAPS ALSO LED THE KESWICKS TO SAY WHAT ARE BY NOW FAMOUSLY KIND WORDS ABOUT HONG KONG GOVERNOR CHRIS PATTEN'S DEMOCRATIC REFORMS AND THIS AT A TIME WHEN OTHER CAPTAINS OF INDUSTRY WERE KEEPING THEIR HEADS DOWN OR PANDERING TO CHINA THOSE STATEMENTS PROVOKED AN ANGRY RESPONSE FROM BEIJING AND JARDINE'S BUSINESS HAS NO DOUBT SUFFERED IN THE SHORT RUN THE ANNOUNCEMENT THAT JARDINE WILL DELIST FROM THE HONG KONG STOCK EXCHANGE DREW ANOTHER BLISTERING LECTURE FROM THE XINHUA NEWS AGENCY BEIJING'S OFFICIAL VOICE IN THE COLONY DEPUTY DIRECTOR ZHENG GUOXIONG ACCUSED THE 150YEAROLD COMPANY OF BEING EXTREMELY IRRESPONSIBLE IT SEEMS TO US THAT JARDINE'S SHAREHOLDERS HAVE FARED BETTER THAN THE MAINLAND RESIDENTS WHO'VE HAD TO ENDURE 45 YEARS OF THE COMMUNIST PARTY'S RESPONSIBLE GOVERNMENT JARDINE'S LATEST MOVE FOLLOWS THE TRANSFER OF ITS LEGAL DOMICILE TO BERMUDA IN 1984 AND THE SHIFT OF ITS PRIMARY LISTING TO THE LONDON STOCK EXCHANGE TWO YEARS AGO ANNOUNCING THE SHIFT DIRECTORS NIGEL RICH AND CHARLES POWELL ALLUDED TO THE COMPANY'S BRITISH BACKGROUND AND INTERNATIONAL CHARACTER BUT IT WOULD BE UNWISE TO IMPUTE CULTURAL CHAUVINISM TO JARDINE'S DECISION IT'S HARD TO SEE WHY ANY WORLDCLASS COMPANY WOULD WANT TO BECOME A CORPORATE CITIZEN OF THE PEOPLE'S REPUBLIC DO SHAREHOLDERS REALLY WANT THEIR PROPERTY GOVERNED BY BEIJING'S LAWS AND SUBJECT TO A POLITICAL CULTURE THAT PERIODICALLY DESCENDS INTO WARLORDISM AND NOW THREATENS TO PROTECT A NUCLEAR BLACKMAILER LIKE KIM IL SUNG DIVORCES ARE ALWAYS SAD BUT IN THIS CASE BOTH JARDINE AND THE STOCK EXCHANGE ARE DOING THE RIGHT THING HONG KONG'S REGULATORS HAVE AN INTEREST IN PRESERVING THE EXCHANGE'S REPUTATION AS A LEVEL PLAYING FIELD GRANTING THE EXEMPTION THE FIRM WANTED FROM LOCAL TAKEOVER RULES WOULD HAVE LOOKED LIKE A BRIBE TO KEEP JARDINE ON BOARD A TACIT ENDORSEMENT OF ITS DOUR VIEW THAT SAID THE RESPONSIBLE FOLKS AT THE EXCHANGE MUST FEEL 1997 BREATHING DOWN THEIR OWN NECKS PRIVATE CONCENTRATIONS OF POWER NECESSARILY QUAIL BEFORE THE POWER OF THE STATE WHICH INCLUDES THE POWER TO DEPRIVE PEOPLE OF THEIR PROPERTY WITH CHINA LOOMING BOTH JARDINE AND THE STOCK EXCHANGE ARE TRYING TO STAKE OUT GROUND THAT WILL ALLOW THEM TO PRESERVE THEIR INTEGRITY OUR OWN VIEW IS THAT FULL AND IMMEDIATE DEMOCRACY WOULD GIVE HONG KONG ITS BEST HOPE FOR SURVIVING A NEW RULING CLASS THAT SHOWS LITTLE INCLINATION TO HONOR THE SANCTITY OF THE PRIVATE SPHERE 9403290056 940329 JAPAN ENDS EXPORT CURBS TOKYO JAPAN WILL ABOLISH ITS VOLUNTARY RESTRICTIONS ON AUTOMOBILE EXPORTS TO THE US THE HEAD OF THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY HIROSHI KUMAGAI ANNOUNCED IN A NEWS CONFERENCE YESTERDAY MR KUMAGAI SAID AUTO EXPORTS TO THE US HAVE BEEN ON THE DECLINE SINCE THE FISCAL YEAR THAT BEGAN IN APRIL 1987 AS JAPANESE CAR MAKERS CONTINUE TO STEP UP LOCAL PRODUCTION EXPORTS TO THE US ARE LIKELY TO KEEP DECLINING MAKING THE EXPORT CAPS UNNECESSARY HE SAID IN THE CURRENT FISCAL YEAR JAPAN HAS EXPORTED 140 MILLION AUTOS TO THE US DOWN FROM THE 157 MILLION UNITS IN FISCAL 1992 MR KUMAGAI SAID SINCE THE VOLUNTARY CAPS WERE IMPLEMENTED SEVERAL YEARS AGO THEY HAVE BEEN MEANINGLESS BECAUSE AUTO EXPORTS TO THE US FROM JAPAN HAVE CONTINUED TO COME IN WELL BELOW THE RESTRICTIONS 9403290055 940329 JAPAN UNVEILS TRADE INITIATIVES TO OPEN MARKET PLAN DESIGNED TO STAVE OFF US OFFENSIVE IS MET WITH LITTLE ENTHUSIASM BY STAFF REPORTERS DAVID P HAMILTON IN TOKYO AND BOB DAVIS IN WASHINGTON JAPAN UNVEILED A PACKAGE OF MARKETOPENING INITIATIVES IN AN EFFORT TO PERSUADE THE CLINTON ADMINISTRATION TO CALL OFF ITS TRADE OFFENSIVE BUT THE PLAN ISN'T LIKELY TO BRING US NEGOTIATORS BACK TO THE TABLE SOON THE JAPANESE MEASURES ARE LARGELY A REPACKAGING OF PROPOSALS TOKYO MADE IN THE SOCALLED FRAMEWORK TALKS WHICH FAILED LAST MONTH THE INITIATIVES PROMISE DEREGULATORY STEPS BUT ESCHEW THE NUMERICAL TRADE TARGETS OR EXPLICIT TRADE GOALS THAT WASHINGTON SEEKS TOKYO SAID IT WOULD LIBERALIZE GOVERNMENT PURCHASES AND PUT TOGETHER A BOARD OF PRIVATESECTOR WISE MEN TO OVERSEE DEREGULATION BUT THE US WANTS TO MAKE SURE THOSE PROMISES LEAD TO GREATER IMPORTS WE HOPE THIS WILL GIVE MOMENTUM TO REOPEN DIALOGUE BETWEEN THE US AND JAPAN UNDER THE FRAMEWORK TALKS SAID HIDEAKI DOMICHI ECONOMIC COUNSELOR OF JAPAN'S EMBASSY IN WASHINGTON THAT ISN'T LIKELY POSITIVE PROCEDURAL CHANGES ARE ALWAYS WELCOME SAID A SENIOR ADMINISTRATION OFFICIAL BUT THERE IS VERY LITTLE NEW HERE WASHINGTON WAS HAMPERED IN COMING UP WITH A FORMAL RESPONSE YESTERDAY AS US TRADE REPRESENTATIVE MICKEY KANTOR WAS IN TENNESSEE ATTENDING HIS FATHER'S FUNERAL ALSO TOKYO PROVIDED ONLY A JAPANESELANGUAGE VERSION OF ITS PLAN YESTERDAY LEAVING THE US EMBASSY IN TOKYO SCURRYING TO PROVIDE A QUICK TRANSLATION TRADE OFFICIALS IN WASHINGTON WERE PREPARING TO INCREASE THE PRESSURE ON JAPAN ON THURSDAY THE CLINTON ADMINISTRATION WILL RELEASE A REPORT ON TRADE BARRIERS WORLDWIDE INCLUDING A SECTION ON JAPAN ABOUT 50 PAGES LONG IN PARTICULAR THE US IS LOOKING TO BOOST EXPORTS TO JAPAN IN TELECOMMUNICATIONS MEDICAL EQUIPMENT AND GLASS THE US WILL DECIDE BY APRIL 30 WHETHER TO BEGIN FORMAL PROCEEDINGS AGAINST JAPAN IN THOSE AREAS AND THREATEN TRADE SANCTIONS IF JAPAN DOESN'T COMPLY THAT IS THE DEADLINE FOR A REVIEW OF FOREIGN GOVERNMENT PURCHASING PRACTICES THE US REALIZES THAT THE THREAT OF TRADE ACTIONS HAS BOOSTED THE VALUE OF THE YEN THAT IN TURN EXERTS ENORMOUS PRESSURE ON JAPAN'S ECONOMY BECAUSE IT INCREASES THE PRICE OF JAPANESE EXPORTS ABROAD US OFFICIALS SAY THEY SEE NO NEED TO EASE TENSIONS WITH TOKYO SOON AND RESUME NEGOTIATIONS AN ACTION THAT COULD LEAD TO A DECLINE IN THE YEN'S VALUE AND A REDUCTION OF WASHINGTON'S LEVERAGE IT'S BETTER US OFFICIALS ARGUE TO HOLD TIGHT JAPAN'S MARKETOPENING PACKAGE CENTERS ON INSURANCE MEDICAL EQUIPMENT TELECOMMUNICATIONS AND AUTOS AREAS NEGOTIATED IN THE FRAMEWORK TALKS WITH INSURANCE JAPAN SAID IT WOULD ENCOURAGE MORE COMPETITION AND CUT RED TAPE THAT IS LARGELY AIMED AT FOREIGN COMPANIES JAPANESE OFFICIALS REITERATED THAT THE TRADE MEASURES AREN'T JUST A RESPONSE TO US PRESSURE BUT ARE PART OF A CONTINUING PROCESS TO OPEN TRADE HOWEVER THE INSURANCE PLAN ISN'T EXPECTED TO REACH JAPAN'S DIET UNTIL NEXT YEAR IN AN EXAMPLE OF STEPS BEING TAKEN BY THE PRIVATE SECTOR JAPAN'S TOYOTA MOTOR CORP MITSUBISHI MOTORS CORP AND HONDA MOTOR CO OUTLINED PLANS TO INCREASE THEIR PURCHASES OF FOREIGN AUTO PARTS FOLLOWING THE RELEASE LAST WEEK OF A SIMILAR PLAN BY NISSAN MOTOR CORP HOWEVER US OFFICIALS SAID THE PROPOSED PURCHASES FALL FAR SHORT OF THE 20 ANNUAL GROWTH IN FOREIGN AUTOPARTS PURCHASES THAT THE US WAS SEEKING THE GOVERNMENT AND PRIVATESECTOR MEASURES REPRESENT JAPAN'S PRINCIPAL ATTEMPT TO RESOLVE TRADE TENSIONS WITH THE US SINCE THE FRAMEWORK TALKS COLLAPSED IN MIDFEBRUARY AT THE TIME JAPAN REFUSED TO ACCEPT US CALLS FOR WAYS TO MEASURE ITS PROGRESS IN OPENING ITS MARKET TO IMPORTS SAYING THAT SETTING SUCH TARGETS WOULD VIOLATE FREEMARKET PRINCIPLES SINCE THEN JAPAN HAS BEEN UNDER PRESSURE FROM THE US TO FASHION ITS OWN MARKETOPENING PROGRAM THE NEW PLAN HEWS TO THE FREE MARKETPOSITION AND DOESN'T ENUMERATE SPECIFIC WAYS IN WHICH JAPAN'S PLEDGES COULD BE MONITORED THE PROSPECT OF MORE TRADE FRICTION COMES AMID CONTINUED POLITICAL UNCERTAINTY FOR THE GOVERNMENT OF PRIME MINISTER MORIHIRO HOSOKAWA WHICH FACES AN AGGRESSIVE OPPOSITION THAT HAS DEADLOCKED THE JAPANESE PARLIAMENT KYODO NEWS SERVICE REPORTED YESTERDAY THAT A PROMINENT MEMBER OF THE LARGEST PARTY IN JAPAN'S RULING COALITION SUGGESTED THAT MR HOSOKAWA MAY HAVE TO RESIGN IF HE CAN'T RESOLVE THE LEGISLATIVE GRIDLOCK PRIME MINISTER HOSOKAWA TELEPHONED PRESIDENT CLINTON LATE YESTERDAY AFTERNOON WASHINGTON TIME TO GIVE THE PRESIDENT A PERSONAL ACCOUNT OF THE JAPANESE PACKAGE WHICH WAS SCHEDULED TO BE ANNOUNCED AFTER A CABINET MEETING IN TOKYO THE TWO SPOKE FOR ABOUT 10 MINUTES MR CLINTON THANKED THE PRIME MINISTER FOR THE PREVIEW AND SAID HE WOULD STUDY ITS DETAILS WHEN THEY BECAME AVAILABLE HE ALSO EXPRESSED SYMPATHY FOR THE FAMILIES OF THE JAPANESE EXCHANGE STUDENT AND THE JAPANESEAMERICAN STUDENT WHO WERE VICTIMS OF A RECENT CARJACKING IN LOS ANGELES SOME OF THE MEASURES SUCH AS THOSE TO PROMOTE IMPORTS WERE PART OF JAPAN'S POSITION IN THE FAILED FRAMEWORK NEGOTIATIONS AS PART OF ITS MARKETOPENING PLAN JAPAN ALSO REITERATED ITS WILLINGNESS TO CHANGE ITS PROCUREMENT SYSTEM THIS YEAR SO IT MIRRORS THE US GOVERNMENT'S OWN SYSTEM SENSITIVE TO CRITICISM THAT MANY JAPANESE GOVERNMENT CONTRACTS ARE DECIDED BEFORE BIDDING OFFICIALLY OPENS JAPANESE OFFICIALS PLAN TO SOLICIT COMMENTS AND SUGGESTIONS ON PRODUCT SPECIFICATIONS FOR AT LEAST 60 DAYS BEFORE ANNOUNCING AN OPEN PROCUREMENT JAPAN ALSO OUTLINED OTHER MARKETOPENING STEPS WITH DETAILS TO BE FILLED IN BY JUNE AMONG THEM ARE STEPS TO DEREGULATE SEVERAL AREAS OF THE ECONOMY SUCH AS HOUSING AND LAND TRANSACTIONS AND TO ALLOW FOREIGNERS TO PARTICIPATE IN PANELS THAT WILL RECOMMEND FURTHER DEREGULATION THE GOVERNMENT ALSO PLANS TO ADD MORE STAFFERS TO ITS FAIR TRADE COMMISSION WHICH HAS BEEN WIDELY CRITICIZED AS INEFFECTIVE JAPAN ALSO PLEDGED TO COMPLETE PLANS FOR TAX REFORM BY THE END OF JUNE AND SAID IT PLANS TO REVIEW ITS 10YEAR 430 TRILLIONYEN 41 TRILLION PLAN FOR PUBLICWORKS EXPENDITURES ON THE AUTOPARTS FRONT TOYOTA SAID IT WILL BUY 645 BILLION OF USMADE PARTS IN THE YEAR ENDING MARCH 31 1997 UP 45 FROM THE 443 BILLION PURCHASED IN THE YEAR ENDED LAST MARCH 31 OF THE TOTAL 13 BILLION OF PARTS WILL BE EXPORTED FROM THE US TO JAPAN UP 18 OVER THE FOURYEAR PERIOD THE REST WILL BE USED IN TOYOTA CARS ASSEMBLED IN THE US TOYOTA ALSO SAID IT WILL INCREASE EXPORTS TO JAPAN OF ITS USMADE CARS TO 20000 VEHICLES IN 1996 FROM 7839 IN 1993 TOYOTA SAID ITS PURCHASES OF USMADE PARTS IN 1995 AND 1996 WILL RISE 10 ANNUALLY THAT COMPARES WITH A 20 ANNUAL INCREASE SOUGHT BY THE US MITSUBISHI WILL RAISE PROCUREMENT OF US PARTS FOR THE CARS IT PRODUCES IN THE US TO BETWEEN 14 BILLION AND 163 BILLION IN THE YEAR ENDING MARCH 31 1997 MORE THAN DOUBLE THE 650 MILLION PURCHASED IN THE YEAR ENDING THURSDAY HONDA PLANS TO BUY 465 BILLION OF USMADE AUTOMOBILE PARTS AND MATERIALS WITHIN THE YEAR ENDED MARCH 31 1996 UP 45 FROM 321 BILLION IN THE YEAR ENDED MARCH 31 1993 HONDA ALSO PLANS TO INCREASE ITS OVERALL IMPORTS OF PARTS VEHICLES AND OTHER PRODUCTS TO 127 BILLION IN THE SAME YEAR UP FROM 107 BILLION IN THE YEAR ENDED MARCH 31 1993 9403290054 940329 REVIEW & OUTLOOK EDITORIAL ASIDES POSTAL SANITY BUSINESS USERS OF PRIVATE OVERNIGHT MAILING COMPANIES WILL NO LONGER HAVE TO LIVE IN FEAR THAT POSTAL INSPECTORS WILL AUDIT THEIR MAIL ROOMS TO SEE IF THEIR SHIPMENTS TRULY MERIT OVERNIGHT TREATMENT IN POSTAL BULLY REVIEW & OUTLOOK JANUARY 4 WE DESCRIBED THE POSTAL SERVICE'S PRACTICE OF SHOWING UP AT COMPANIES TO DEMAND PROOF THAT THE OVERNIGHT MAILINGS WERE NECESSARY FACING A CONGRESSIONAL REVOLT AGAINST THIS EXTRAORDINARY POLICY POSTMASTER GENERAL MARVIN RUNYON SAID LAST WEEK THAT HIS INSPECTORS WILL NO LONGER INITIATE REVIEWS THAT LAST YEAR RESULTED IN SEVERAL COMPANIES PAYING THE EQUIVALENT OF FINES FOR NOT USING THE POSTAL SERVICE'S OWN EXPRESS MAIL SERVICE WE CERTAINLY WELCOME THE STAND DOWN BUT MORE FUNDAMENTALLY CONGRESS OUGHT TO REEXAMINE HOW THE POSTAL SERVICE'S FIRSTCLASS MAIL MONOPOLY ALLOWS IT TO TAKE SUCH ANTICOMPETITIVE ACTIONS IN THE FIRST PLACE 9403290053 940329 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED MARCH 25 1994 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER KALAMAZOO MICH WILL REDEEM ON MAY 1 1994 150000 PRINCIPAL AMOUNT OF ITS 575 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1968 DUE MAY 1 1995 MELLON BANK PITTSBURGH IS PAYING AGENT MIDDLETOWN HOUSING AUTHORITY WILL REDEEM ON APRIL 28 1994 THE FOLLOWING REVENUE BONDS DUE FEB 1 OF THE INDICATED YEARS 65 DUE 199598 66 DUE 19992000 67 DUE 200102 675 DUE 200306 AND 725 DUE 2016 UNITED COUNTIES TRUST CO SUMMIT NJ IS TRUSTEE 9403290051 940329 MEDICAL INNOVATIONS ACQUISITION HOUSTON MEDICAL INNOVATIONS INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE PRIVATELY OWNED PRN HOME HEALTH CARE INC OF NEVADA FOR 35 MILLION IN A NEWS RELEASE MEDICAL INNOVATIONS SAID IT WILL PAY 2 MILLION OF THE TOTAL IN CASH 750000 IN COMMON STOCK AND 750000 AS A NOTE 9403290050 940329 INTERNATIONAL BRIEF PEARSON PLC PRETAX EARNINGS ROSE 38 IN 93 AIDED BY ACQUISITIONS BRITISH MEDIA AND BANKING GROUP PEARSON PLC SAID 1993 PRETAX PROFIT TOTALED 2086 MILLION 3126 MILLION UP 38 WITH TWO ACQUISITIONS OF THAMES TELEVISION AND EXTEL HELPING THE RESULTS THE RESULTS ARE EXACTLY IN LINE WITH EXPECTATIONS BUT THE DIVIDEND INCREASE TO 13 PENCE 195 CENTS A SHARE FROM 12 PENCE WAS UNEXPECTED AN UNCHANGED DIVIDEND HAD BEEN FORECAST PEARSON CHAIRMAN LORD BLAKENHAM SAID THAT ALTHOUGH THE COMPANY CONTINUES TO BUILD ON THE WRITTEN WORD ITS STRATEGY FOCUSES ON SCREENBASED BUSINESSES SUCH AS THAMES TELEVISION AND FINANCIALINFORMATION PROVIDER EXTEL 9403290049 940329 LETTERS TO THE EDITOR BOXSEAT DEDUCTIONS FREDERICK KLEIN COMPLAINS THAT HIS CHICAGO BULLS TICKETS WON'T BE NEARLY AS GOOD IN THE TEAM'S NEW ARENA HE'S BEING DISPLACED BY THE SOCALLED LUXURY BOXES LEISURE & ARTS MARCH 4 BECAUSE THOSE BOXES ARE SUBSIDIZED BY THE TAX WRITEOFFS AFFORDED TO BUSINESS ENTERTAINMENT HE SAYS THEY COMMAND PRICES FAR IN EXCESS OF WHAT CAN BE CHARGED FOR ORDINARY TICKETS TO SPORTING EVENTS I UNDERSTAND HIS ANGER HOWEVER THE INTERNAL REVENUE CODE SECTION 27412 LIMITS THE DEDUCTION ASSOCIATED WITH SUCH LUXURY BOXES TO THE FACE VALUE OF NONLUXURY BOX SEAT TICKETS FOR THE SEATS IN SUCH BOX 9403290048 940329 INTERNATIONAL BRIEF INCHCAPE PLC PRETAX EARNINGS ARE UP 85 DESPITE PROBLEM WITH YEN DIVERSIFIED BRITISH TRADING COMPANY INCHCAPE PLC SAID 1993 PRETAX PROFIT ROSE TO 2714 MILLION 4067 MILLION UP 85 THE 1993 PROFIT WAS HURT BY THE STRENGTH OF THE JAPANESE YEN SIR DAVID PLASTOW CHAIRMAN SAID INCHCAPE WAS HURT BY THE STRENGTH OF THE YEN AND THAT 1993 WAS EVEN TOUGHER THAN EXPECTED THE COMPANY GETS MANY OF ITS PRODUCTS FROM JAPAN DESPITE ENCOURAGING SIGNS IN CERTAIN MARKETS INCHCAPE DOESN'T EXPECT ANY MARKED RECOVERY IN THE BUSINESS CLIMATE FOR THE MAJORITY OF OUR OPERATIONS IN 1994 NOR CAN WE RELY ON ANY SIGNIFICANT IMPROVEMENT IN THE CURRENCY SITUATION HE SAID 9403290047 940329 BUSINESS BRIEFS PARKER HANNIFIN CORP AGREED TO BUY FINNFILTER OY FROM KEMIRA OY OF HELSINKI FINLAND TERMS WEREN'T DISCLOSED FINNFILTER MAKES FILTERS AND HAS MORE THAN 10 MILLION IN ANNUAL SALES LUKENS INC COMPLETED THE SALE OF ITS SAFETY PRODUCTS GROUP TO JACKSON PRODUCTS INC OF ST LOUIS TERMS WEREN'T DISCLOSED TOLL BROTHERS INC A LUXURY HOMEBUILDER ENTERED THE NORTH CAROLINA MARKET AGREEING TO PURCHASE LOTS IN THE RALEIGHDURHAM MARKET COLUMBIA/HCA HEALTHCARE CORP COMPLETED THE PREVIOUSLY ANNOUNCED SALE OF THE 323BED MEDICAL CENTER HOSPITAL OF HUNTSVILLE IN HUNTSVILLE ALA TO THE HEALTHCARE AUTHORITY OF THE CITY OF HUNTSVILLE TERMS WEREN'T DISCLOSED 9403290046 940329 KEMPER PLANS LUCRATIVE COMPENSATION FOR TOP EXECUTIVES IF FIRM IS ACQUIRED BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL KEMPER CORP BATTLING AN UNFRIENDLY 22 BILLION TAKEOVER OFFER FROM GE CAPITAL CORP HAS SET UP A LUCRATIVE COMPENSATION PLAN FOR ITS TOP 13 EXECUTIVES IF THEY LEAVE AS A RESULT OF A CHANGE OF CONTROL ACCORDING TO KEMPER'S PROXY STATEMENT A SPOKESWOMAN FOR KEMPER BASED IN LONG GROVE ILL DENIED THAT THE COMPENSATION PLAN WHICH DOESN'T REQUIRE APPROVAL BY KEMPER SHAREHOLDERS RESULTED FROM GE CAPITAL'S BID STILL PEOPLE CLOSE TO THE GENERAL ELECTRIC CO UNIT WHICH ANNOUNCED ITS BID EARLIER THIS MONTH SAID THAT RATHER THAN HINDER THE ACQUISITION KEMPER'S MOVE COULD MAKE ITS MANAGEMENT MORE WILLING TO SELL THE COMPANY UNDER THE COMPENSATION PLAN THE TOP FIVE EXECUTIVES COULD RECEIVE AT LEAST AN ESTIMATED 194 MILLION IF THE COMPANY IS SOLD IT LOOKS LIKE WHAT SOMEONE WOULD DO IF THEY THOUGHT THERE WAS GOING TO BE A SALE ONE PERSON SAID A SPOKESMAN FOR GE BASED IN FAIRFIELD CONN DECLINED TO COMMENT THE KEMPER PACKAGE ISN'T UNUSUAL IN THAT MANY LARGE PUBLIC COMPANIES HAVE GOLDEN PARACHUTES FOR MANAGEMENT IN THE EVENT THE COMPANY IS ACQUIRED KEMPER SAYS ITS TERMINATIONPROTECTION AGREEMENTS WILL ENCOURAGE EXECUTIVES TO REMAIN WITH THE COMPANY DURING PERIODS OF UNCERTAINTY ABOUT THE COMPANY'S OWNERSHIP PHILOSOPHICALLY THE IDEA IS IF THERE WERE TO BE A CHANGE OF CONTROL WE WANT OUR EXECUTIVES TO BE FOCUSED ON BUSINESS DURING SUCH A PERIOD THE SPOKESWOMAN SAID THE KEMPER SPOKESWOMAN SAID THE COMPENSATION PLAN STEMMED FROM A DECISION LAST YEAR BY KEMPER TO SELL TWO BUSINESSES TO ITS FORMER PARENT LUMBERMENS MUTUAL CASUALTY CO IN EXCHANGE FOR KEMPER STOCK THE TRANSACTION SLASHED LUMBERMENS STAKE IN KEMPER TO 4 FROM 38 WHICH ANALYSTS SAID MADE THE MONEYMANAGEMENT BROKERAGE AND INSURANCE COMPANY MORE VULNERABLE TO A TAKEOVER BID KEMPER'S MANAGEMENT OWNS RELATIVELY LITTLE OF THE COMPANY'S STOCK AND SO WOULDN'T BENEFIT MUCH FROM THE INCREASED VALUE OF KEMPER SHARES IF GE SUCCEEDS IN ITS 55ASHARE BID BUT THE NEW TERMINATION PACKAGES MEAN THE KEMPER EXECUTIVES WOULD BE RICHLY COMPENSATED IF THEY RESIGN ARE FIRED OR DEMOTED OR FORCED TO MOVE MORE THAN 20 MILES AS A RESULT OF A TAKEOVER THE COMPENSATION INCLUDES THREE YEARS OF SALARY AND ESTIMATED BONUSES TRIPLE THE USUAL PROFITSHARING PAYMENTS PAYMENT OF ANY ACCRUED BUT UNPAID BONUSES THREE YEARS OF RETIREMENT BENEFITS AND ANY DEFERRED COMPENSATION IN ADDITION THE COMPANY WOULD GIVE EXECUTIVES A LUMPSUM CASH PAYMENT FOR TAXES PAID TO THE EXTENT THAT THE SEVERANCE PACKAGES BECOME SUBJECT TO AN EXCISE TAX ALTHOUGH THE COMPENSATION ISN'T EXPECTED TO HINDER ANY ACQUISITION SOME KEMPER SHAREHOLDERS CRITICIZED THE MOVE IT'S REPUGNANT IF NOT IMMORAL SAID MARTIN SASS PRESIDENT OF MD SASS INVESTORS SERVICES A BIG SHAREHOLDER OF KEMPER WHERE'S THE INTEREST OF SHAREHOLDERS BEING FULFILLED IT'S UNCONSCIONABLE BUT NOT UNCOMMON UNFORTUNATELY THE PROXY MATERIAL FOR 1993 DISCLOSED THAT DAVID MATHIS KEMPER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER EARNED 24 MILLION IN CASH AND RESTRICTED STOCK MORE THAN DOUBLE 1992'S AMOUNT IN ADDITION HE RECEIVED STOCK OPTIONS TO BUY 45000 KEMPER SHARES AT AN EXERCISE PRICE OF 38375 YESTERDAY KEMPER'S STOCK CLOSED AT 61 DOWN 375 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GIVING THE OPTIONS AN ESTIMATED CURRENT VALUE OF MORE THAN 1 MILLION ONLY 25 OF THE OPTIONS CAN BE EXERCISED THIS YEAR BUT IF THE COMPANY CHANGES CONTROL ALL THE OPTIONS CAN BE EXERCISED IMMEDIATELY MR MATHIS'S TOTAL COMPENSATION FROM THE GOLDEN PARACHUTE IS ESTIMATED AT MORE THAN 6 MILLION THE PROXY STATEMENT AS EXPECTED RENOMINATED FOUR DIRECTORS WHOSE TERMS ARE EXPIRING AND REITERATED THAT TO REMAIN INDEPENDENT WOULD BE A SUPERIOR ALTERNATIVE MR MATHIS WROTE TO SHAREHOLDERS WE CANNOT PERMIT OURSELVES TO BE STRONGARMED BY ANY POTENTIAL ACQUIRER LARGE OR SMALL WHO SEEKS KEMPER'S VALUABLE FRANCHISE AT A BARGAINBASEMENT PRICE LAST WEEK GE CAPITAL INTENSIFIED THE BATTLE BY FILING AN ALTERNATIVE PROXY STATEMENT THAT NOMINATED A SLATE OF FOUR DIRECTORS TO SUCCEED THE FOUR KEMPER DIRECTORS WHOSE TERMS EXPIRE GE CAPITAL IS UNLIKELY TO TAKE ANY FURTHER STEPS IMMEDIATELY SHAREHOLDERS ARE TO VOTE ON THE RIVAL NOMINATIONS AT KEMPER'S ANNUAL MEETING SCHEDULED FOR MAY 11 IN CHICAGO THE COMPANY DISCLOSED THAT ITS FINANCIAL ADVISER GOLDMAN SACHS & CO ALSO FOUND THE GE UNIT'S OFFER INADEQUATE ANALYSES BY OUTSIDE ADVISERS ARE OFTEN USED TO BUTTRESS A COMPANY'S DEFENSE AND THE COMPANY HAD YET TO CITE GOLDMAN'S OPINION BUT THE PROXY MATERIAL DIDN'T DISCLOSE GOLDMAN'S ANALYSES OF HOW THE COMPANY IS GOING TO ENHANCE SHAREHOLDER VALUE WITHOUT SELLING THE COMPANY THE PROXY MATERIAL SHOWS THAT KEMPER'S STOCK HAS UNDERPERFORMED THE BROADER STOCK MARKET AS WELL AS INDEXES OF STOCKS OF SIMILAR COMPANIES 9403290045 940329 BUSINESS BRIEF BANKAMERICA CORP BANKING UNIT PLANS TO BUY UNITED MORTGAGE HOLDING IN A MOVE TO EXPAND ITS HOMELENDING BUSINESS BANKAMERICA CORP SAID IT IS ACQUIRING UNITED MORTGAGE HOLDING CO A MIDSIZE MORTGAGE BANKER IN THE MIDWEST BANKAMERICA SAID ITS BANKING UNIT BANK OF AMERICA WILL ACQUIRE ALL THE STOCK OUTSTANDING OF CLOSELY HELD UNITED BASED IN BLOOMINGTON MINN TERMS WEREN'T DISCLOSED OFFICIALS AT SAN FRANCISCOBASED BANKAMERICA SAID THE ACQUISITION EXPECTED TO CLOSE IN THE THIRD QUARTER AFTER REGULATORY APPROVALS WOULD BROADEN THE BANK'S REACH IN MAKING HOME LOANS BEYOND ITS CURRENT FOCUS IN 10 WESTERN STATES TO THE MIDWEST UNITED ORIGINATED 19 BILLION IN HOME LOANS LAST YEAR LARGELY IN MIDWESTERN STATES SUCH AS MINNESOTA WISCONSIN AND NORTH DAKOTA BANKAMERICA SAID IT ORIGINATED 106 BILLION IN HOME LOANS IN 1993 9403290044 940329 YOUR MONEY MATTERS UNMARRIED COUPLES CAN FACE TRICKY FINANCIAL PLANNING BY DEBORAH LOHSE STAFF REPORTER OF THE WALL STREET JOURNAL UNMARRIED COUPLES FACE SOME DIFFICULT FINANCIALPLANNING PROBLEMS ESPECIALLY IF THE PARTNERS ARE GAY IN A WORLD WHERE LAW AND CUSTOM FAVOR CONVENTIONAL HUSBANDANDWIFE PAIRINGS UNMARRIED HETEROSEXUAL AND GAY COUPLES TYPICALLY DON'T HAVE THE RIGHT TO INHERIT EACH OTHER'S PROPERTY SPEAK FOR EACH OTHER IN A CRISIS OR SOMETIMES EVEN VISIT ONE ANOTHER IN THE HOSPITAL UNLESS THEY'VE DONE SOME CAREFUL PLANNING UNMARRIED PEOPLE HAVE A RESPONSIBILITY TO DO THIS FOR THEIR PARTNER PARTICULARLY IF THEY HAVE ANTAGONISTIC FAMILY MEMBERS SAYS JUDITH TURKEL A LAWYER WITH TURKEL FORMAN & ZIMMERMAN IN NEW YORK HOUSTON ATTORNEY MARC GROSSBERG TELLS OF A CLIENT WHOSE HIVPOSITIVE PARTNER DIED LAST SUMMER BEFORE SIGNING A WILL THAT PROVIDED FOR THE CLIENT NOW MR GROSSBERG AND HIS CLIENT ARE SUING THE LATE PARTNER'S FATHER SO THE MAN CAN REMAIN IN THE HOME THE COUPLE SHARED AND INHERIT OTHER ASSETS HE SAYS HIS PARTNER INTENDED HIM TO HAVE ALL OF THOSE PROBLEMS WOULDN'T HAVE HAPPENED IF THE LATE PARTNER HAD SIGNED THE DOCUMENTS HIS LAWYER HAD PREPARED SAYS MR GROSSBERG EVERYONE SHOULD HAVE AN UPTODATE WILL OF COURSE BUT MARRIED COUPLES HAVE A SAFETY NET UNDER THE LAWS OF EVERY STATE A SPOUSE IS FIRST IN LINE TO INHERIT A MATE'S ESTATE IF THE PERSON DIES WITHOUT A WILL KNOWN AS DYING INTESTATE THAT HOLDS EVEN IF THE MARRIAGE OCCURS JUST BEFORE DEATH FOR THOSE UNWILLING OR UNABLE TO GET MARRIED NO STATE FOR EXAMPLE RECOGNIZES MARRIAGES BETWEEN SAMESEX COUPLES A WILL BECOMES ABSOLUTELY ESSENTIAL UNMARRIED PARTNERS ARE NOWHERE ON THE MAP UNLESS YOU ARE IN THE WILL SAYS BEATRICE DOHRN LEGAL DIRECTOR AT LAMBDA LEGAL DEFENSE AND EDUCATION FUND A GAYRIGHTS GROUP IN NEW YORK UNMARRIED PARTNERS SHOULD TAKE STEPS TO ENSURE THAT THE WILL COULD WITHSTAND A LEGAL CHALLENGE BY DISGRUNTLED RELATIVES MAX GUTIERREZ CHAIRMANELECT OF THE AMERICAN BAR ASSOCIATION'S REAL PROPERTY PROBATE AND TRUST LAW SECTION SAYS EACH PARTNER SHOULD CONTACT HIS OR HER OWN LAWYER IF THEY USE ONE LAWYER WHO WAS ORIGINALLY HIRED BY THE SURVIVING PARTNER THAT FACT COULD GIVE AMMUNITION TO A FAMILY MEMBER CONTESTING THE WILL ANOTHER SUGGESTION PEOPLE WHO ARE HOSPITALIZED WITH AIDS OR OTHER DEBILITATING ILLNESSES WHEN THEY MAKE THEIR WILL MAY WANT ONE OR TWO DOCTORS' SIGNED OPINIONS THAT THEY ARE AWARE OF THEIR ACTIONS SAYS MR GUTIERREZ SOME COUPLES MAY WANT TO CONSIDER WAYS TO TRANSFER PROPERTY TO ONE ANOTHER OUTSIDE OF PROBATE THE PROCESS BY WHICH ESTATES ARE VALUED AND WILLS ARE SETTLED IF A MEMBER OF THE DECEASED'S LEGAL OR BIOLOGICAL FAMILY IS GOING TO CHALLENGE THE SURVIVING PARTNER'S RIGHT TO PROPERTY PROBATE IS THE LIKELIEST ARENA PERHAPS THE SIMPLEST APPROACH IS TO HAVE THE OWNERSHIP PAPERS OF SHARED PROPERTY SUCH AS A HOME LIST THEM AS OWNING THE PROPERTY JOINTLY WITH RIGHT OF SURVIVORSHIP PLANNERS SAY UPON ONE PARTNER'S DEATH THE PROPERTY BELONGS TO THE SURVIVOR IF BOTH PARTNERS DIDN'T ORIGINALLY PAY FOR THE PROPERTY THE BUYER MAY WANT TO SIMPLY ADD THE PARTNER'S NAME TO THE DEED AS A JOINT OWNER HOWEVER THE BUYER MAY OWE FEDERAL GIFT TAX OF 18 TO 55 ON THE VALUE OF TRANSFERRED OWNERSHIP ABOVE 10000 SPOUSES DON'T HAVE THIS PROBLEM LAWYERS SAY ANOTHER STRATEGY IS TO PUT SOME PROPERTY INTO A REVOCABLE LIVING TRUST TO BYPASS PROBATE SOME PLANNERS SAY SUCH TRUSTS ARE BEST FOR SOMEONE ANTICIPATING A LONG ILLNESS WHO WANTS HIS PARTNER TO BE ABLE TO HANDLE ASSETS FOR HIM BUT THERE ARE NO INCOMETAX OR ESTATETAX ADVANTAGES TO LIVING TRUSTS PLANNERS CAUTION AND IF THE PARTNERS DON'T TRUST EACH OTHER THOROUGHLY THEY MAY NOT WANT TO GIVE UNFETTERED POWER OVER THEIR ASSETS STATE LAWS VARY BUT MOST LIVING TRUSTS FOR UNMARRIED COUPLES WORK THIS WAY ONE PARTNER MAKES HIMSELF TRUSTEE AND HIS PARTNER COTRUSTEE HE TRANSFERS TITLE OF CERTAIN PROPERTY HE'D LIKE OUT OF THE GLARE OF PROBATE WITHIN THE TRUST HE CAN SELL EXCHANGE OR SPEND THE ASSETS AND HIS PARTNER AND COTRUSTEE CAN DO SO FOR HIM IF HE'S INCAPACITATED UPON THE DEATH OF THE PARTNER WHO PUT THE PROPERTY IN THE TRUST THE ASSETS WILL BE TAXABLE AS PART OF HIS ESTATE BUT THEY WILL GO DIRECTLY TO BENEFICIARIES THE DECEASED NAMED FREQUENTLY WITHIN A FEW WEEKS IT CAN TAKE MONTHS OR EVEN YEARS FOR PROPERTY TO MAKE IT THROUGH THE PROBATE PROCESS BUT IF YOUR PRIMARY ASSETS ARE BANK OR BROKERAGE ACCOUNTS LIFEINSURANCE POLICIES OR EMPLOYEEBENEFIT PLANS IT MIGHT BE SIMPLER TO MAKE YOUR PARTNER THE BENEFICIARY RATHER THAN PUTTING THEM INTO A TRUST SAYS STEVEN BING A NEW YORK ATTORNEY BANKS OR BROKERAGES MAY HAVE YOU SET UP INTRUSTFOR ACCOUNTS FOR THIS PURPOSE AND A SIMPLE NAME CHANGE MAY MAKE YOUR PARTNER THE BENEFICIARY ON INSURANCE OR BENEFITS FORMS UNFORTUNATELY ADVISERS SAY THERE IS LITTLE ESCAPE FROM ESTATE TAXES THAT CAN EAT UP MORE THAN 50 OF THE INHERITANCE FOR THOSE WITH SIZABLE ESTATES ONE AVENUE TO CONSIDER IS BUYING A LIFEINSURANCE POLICY ON YOURSELF THAT WILL PAY THE ESTATE TAXES UPON YOUR DEATH THE INSURANCE PROCEEDS THEMSELVES PROBABLY WON'T BE TAXED AS PART OF YOUR ESTATE IF THE POLICY IS BOUGHT THROUGH AN IRREVOCABLE LIFEINSURANCE TRUST SAYS MARTIN M SHENKMAN A NEW YORK ATTORNEY A KNOWLEDGEABLE ESTATE ATTORNEY CAN TELL YOU IF SUCH A STRATEGY IS RIGHT FOR YOU COUPLES IN WHICH ONE PARTNER IS HIVPOSITIVE OR HAS OTHER HEALTH PROBLEMS MIGHT BE ABLE TO TRIM ESTATE TAXES ON SOME PROPERTY BY USING A PRIVATE ANNUITY AGREEMENT SAYS STEPHAN LEIMBERG A PROFESSOR OF TAXATION AND ESTATE PLANNING AT THE AMERICAN COLLEGE IN BRYN MAWR PA ESSENTIALLY ONE PARTNER AGREES TO BUY A BIGTICKET ASSET FROM THE OTHER OVER THE OWNER'S ACTUARIAL LIFE MR LEIMBERG GIVES THE EXAMPLE OF A 30YEAROLD MAN WHO IS HIVPOSITIVE BUT HEALTHY AND OWNS A 500000 HOME THAT HE WOULD LIKE HIS PARTNER TO INHERIT THEY SIGN A PRIVATE ANNUITY AGREEMENT IN WHICH THE PARTNER BECOMES OWNER OF THE HOME IN EXCHANGE FOR LIFETIME PAYMENTS TO THE CURRENT OWNER THE AMOUNT OF THE PAYMENTS IS CALCULATED ON THE HOME'S CURRENT FAIR MARKET VALUE SPREAD OVER THE SELLER'S LIFE EXPECTANCY AS DETERMINED BY ACUTUARIAL TABLES IN ALL LIKELIHOOD THE SELLER WOULD DIE IN A SHORTER PERIOD OF TIME WHEN THE SELLER DIES THE PARTNER WHO HAS BEEN MAKING THE PAYMENTS HAS NO FURTHER OBLIGATION EVEN IF HE HASN'T MADE 500000 OF PAYMENTS SUCH A CONTRACT WON'T WORK HOWEVER IF THE CURRENT OWNER'S DEATH IS IMMINENT MR LEIMBERG SAYS IT'S CRUCIAL TO USE A KNOWLEDGEABLE ATTORNEY TO SET UP SUCH AN ARRANGEMENT IN ADDITION TO THINKING ABOUT PROPERTY COUPLES NEED TO GIVE EACH OTHER CERTAIN RIGHTS TO AVOID FAMILY INTERFERENCE A FINANCIAL AND A MEDICAL DURABLE POWER OF ATTORNEY ARE TWO OTHER CRUCIAL DOCUMENTS TO HAVE IN MEDICAL EMERGENCIES ADVISERS NOTE THE FORMER AUTHORIZES YOUR PARTNER TO HANDLE FINANCIAL CHORES LIKE PAYING TAXES APPLYING FOR BENEFITS PAYING BILLS OR BORROWING MONEY IF YOU CAN'T THE MEDICAL DURABLE POWER OF ATTORNEY KNOWN AS A HEALTHCARE PROXY IN SOME STATES GIVES YOUR PARTNER PRIORITY TO TELL DOCTORS OR HOSPITALS WHAT MEDICAL MEASURES YOU WOULD WANT TAKEN IN AN EMERGENCY IN ADDITION TO HAVING YOUR PARTNER STAND IN FOR YOU THIS WAY YOU SHOULD ALSO LOOK INTO SIGNING A LIVING WILL RECOGNIZED IN MOST STATES A LIVING WILL SPELLS OUT YOUR WISHES ABOUT WHETHER RESUSCITATION ARTIFICIAL FEEDING OR HEROIC MEASURES SHOULD BE UNDERTAKEN TO KEEP YOU ALIVE IN EXTREME CIRCUMSTANCES 9403290043 940329 FREE MARKETS FOR TELECOM HOLD OFF ON WIRELESS AUCTION BY JUSTIN JASCHKE HERE ARE A FEW WORDS YOU'D NEVER EXPECT TO HEAR FROM AN ENTREPRENEUR NOT ALL REGULATORY DELAYS ARE BAD TAKE THE FEDERAL COMMUNICATION COMMISSION'S CURRENT EFFORT TO RECONSIDER ITS EARLIER DECISION ON THE LICENSING AND DEPLOYMENT OF NEW WIRELESS TELECOMMUNICATIONS SERVICES THIS REGULATION WHICH WILL EFFECTIVELY DETERMINE THE COMPETITIVE PICTURE OF THE 100 BILLION WIRELESS INDUSTRY AND WHAT CONSUMERS WILL PAY IS WORTH TAKING THE TIME TO GET RIGHT IN SEPTEMBER THE FCC ANNOUNCED RULES GOVERNING THE EMERGING AND CONVERGING MARKETS FOR THE NEXT GENERATION OF CELLULAR PHONES PERSONAL COMMUNICATORS AND HANDHELD WIRELESS DATA DEVICES ATTEMPTING TO BALANCE THE CONCERNS OF ENTREPRENEURS AND CONSUMERS AGAINST THE WELLREPRESENTED VOICES OF TELECOMMUNICATIONS GIANTS THE FCC DECIDED TO TRY TO PLEASE EVERYONE BY CREATING A CLASS SYSTEM FOR THE UPCOMING AUCTION SMALL PLAYERS FARE WELL THE DECISION SETS ASIDE LICENSES FOR MINORITY AND WOMENOWNED BUSINESSES BIG PLAYERS ALSO DO NICELY THE FCC AGREED TO AUCTION OFF HUGE CHUNKS OF RADIO SPECTRUM A MOVE THAT EFFECTIVELY SHUTS OUT MEDIUMSIZED FIRMS FROM BIDDING BUT THE TELECOMMUNICATIONS MIDDLE CLASS WILL LIKELY BE SQUEEZED IN A FIERCE BIDDING WAR WITH CELLULAR COMPANIES FOR THE SPECTRUM THAT'S LEFT THIS APPROACH IS AKIN TO GIVING FIVE FIRSTROUND DRAFT PICKS TO THE DALLAS COWBOYS AND THE SAN FRANCISCO '49ERS IN THIS YEAR'S NFL DRAFT AND ONLY ONE TO EVERY OTHER TEAM IN THE LEAGUE NOT EXACTLY A GOOD FORMULA FOR COMPETITIVE PARITY UNFORTUNATELY THE PROBLEMS DON'T END THERE NOT ONLY DO TELECOMMUNICATIONS GIANTS GET THE OPPORTUNITY TO BID FOR SPECTRUM WITH ONLY LIMITED COMPETITION BUT THEY ALSO GET AN EXTRA EDGE BY RECEIVING LICENSES COVERING MORE TERRITORY THAN THEIR SMALLER RIVALS THIS UNEQUAL ALLOCATION WILL ALLOW THE BIGGEST FIRMS TO USE CHEAPER SPECTRUMGREEDY CELLULARSTANDARD TECHNOLOGIES TO PROVIDE WIRELESS SERVICES INSTEAD OF MORE EFFICIENT NEW METHODS USING DIGITAL TECHNOLOGY THE EXPERIENCE OF MY OWN COMPANY ONECOMM WITH A SERVICE KNOWN AS SPECIALIZED MOBILE RADIO OR SMR ILLUSTRATES THIS POINT WELL SMR COMPANIES LIKE MINE ARE UPDATING WHAT WERE ONCE NONCONNECTED LESSSOPHISTICATED WIRELESS SYSTEMS SUCH AS FLEET DISPATCH CHANNELS INTO INTEGRATED WIRELESS SERVICE NETWORKS THAT ARE COMPETING DIRECTLY WITH THE OLD CELLULAR DUOPOLY IN LOCAL MARKETS OUR INNOVATIVE SYSTEM IS SET TO REACH THE MARKET LATER THIS YEAR COMPANIES LIKE MINE PROVIDE ADVANCED WIRELESS SERVICES WITH ONLY A FRACTION OF THE SPECTRUM THAT GIANTS LIKE PACIFIC TELESIS AND TIME WARNER INSIST THEY REQUIRE FOR NEW WIRELESS COMMUNICATIONS SERVICES THE DIGITAL TECHNOLOGY THAT ONECOMM IS DEPLOYING CAN TRANSMIT VOICE COMMUNICATIONS SIX TIMES MORE EFFICIENTLY THAN STANDARD ANALOG CELLULAR TECHNOLOGY WE ARE NOT ALONE SOME OF OUR COMPETITORS CLAIM TO BE DEVELOPING SPECTRUM EFFICIENCY 10 TIMES GREATER THAN EXISTING SYSTEMS BUT THE CURRENT FCC PLAN PROVIDES NO INCENTIVE FOR WINNERS OF LARGER SPECTRUM BLOCKS TO BE EFFICIENT AND INNOVATIVE IT'S ACTUALLY CHEAPER FOR THEM TO USE OLDER LESS EFFICIENT CELLULARCLONE TECHNOLOGIES IF IMPLEMENTED THE FCC RULES WOULD CREATE AN INCENTIVE FOR INEFFICIENCY BY GRANTING LARGER BLOCKS OF SPECTRUM THAN ARE REQUIRED TO IMPLEMENT A SYSTEM AND GIVING THE LARGE BLOCK WINNERS A COMPETITIVE LEG UP ON FIRMS THAT CAN'T RAISE THE BILLION DOLLARS IT WILL TAKE TO BUY MARKET SUCCESS ALL AT ONCE THERE IS A BETTER WAY LET THE MARKET WORK FROM THE BOTTOM UP NOT THE TOP DOWN OUR FIRM HAS BECOME AN EMERGING WIRELESS COMPETITOR BY FINDING INNOVATIVE WAYS TO CONSOLIDATE SMALL BLOCKS OF OLD SMR SPECTRUM PIECE TOGETHER REGIONAL NETWORKS AND DEPLOY ADVANCED DIGITAL TECHNOLOGY IN OUR VIEW THIS MARKETDRIVEN MODEL CAN ALSO GOVERN THE DEVELOPMENT OF A COMPETITIVE MARKET FOR PERSONAL COMMUNICATIONS SERVICES AND THE NEXT GENERATION OF WIRELESS COMMUNICATORS WE HOPE THEREFORE THAT THE FCC WILL RECONSIDER ITS CURRENT APPROACH OF CHOOSING WINNERS AND LOSERS BASED ON WHO CAN AFFORD TO BUY THE MOST SPECTRUM INSTEAD THE COMMISSION SHOULD AWARD SMALL LICENSES OF EQUAL SIZE TO MORE COMPETITORS SAY BY DIVVYING UP THE 120 MEGAHERTZ OF SPECTRUM INTO 12 LICENSES OF EQUAL SIZE THIS WILL ALLOW MORE COMPANIES TO PARTICIPATE IN WIRELESS PERSONAL COMMUNICATIONS PROVIDING A WIDER VARIETY OF STRATEGIES AND TECHNOLOGIES FOR THE MARKET TO CHOOSE FROM THE MARKET WILL ULTIMATELY DETERMINE THE WINNERS BASED ON SERVICE CAPABILITIES AND OPERATING EFFECTIVENESS THE WINNERS WILL THEN BE POSITIONED TO ACCUMULATE MORE SPECTRUM AS NEEDED FOR FUTURE GROWTH THAT'S A DEVELOPMENT WORTH WAITING FOR MR JASCHKE IS PRESIDENT OF ONECOMM CORP A WIRELESS COMMUNICATIONS COMPANY BASED IN DENVER 9403290042 940329 LETTERS TO THE EDITOR THEM DRY BONES THE CHARGE THAT WHITEWATER IS REMINISCENT OF WATERGATE IS PREPOSTEROUS SAYS AL HUNT WHITEWATER IT'S THE COVERUP MORE THAN THE DEAL POLITICS & PEOPLE MARCH 3 INDEED IT WAS THE COVERUP AND LYING PLUS ASSORTED SKELETONS UNCOVERED IN THE INVESTIGATION THAT SANK THE NIXON PRESIDENCY BUT THE DEAL WAS A CRIME IN WHICH NOTHING WAS STOLEN AND NO ONE WAS HURT IN THE CASE OF WHITEWATER WE DO NOT KNOW IF ANYTHING WAS STOLEN NOR WHAT SKELETONS MAY STILL BE UNCOVERED WE DO KNOW THAT ONE OF THE PARTICIPANTS COMMITTED SUICIDE STAY TUNED 9403290041 940329 BUSINESS BRIEF BANNER AEROSPACE INC TWO NONCORE SUBSIDIARIES ARE PUT ON BLOCK FOR SALE BANNER AEROSPACE INC SAYING IT WANTS TO FOCUS ON ITS CORE BUSINESSES PUT ITS AIRCRAFT SALES AND AIRCRAFT ELECTRONIC SYSTEMS UNITS ON THE BLOCK BANNER DECIDED TO SELL ITS AUSTIN JET CORP AND AJ AEROSPACE INC SUBSIDIARIES AUSTIN JET SELLS CORPORATE AIRCRAFT AJ AEROSPACE PROVIDES AVIONICS OR ELECTRONIC SYSTEMS INSTALLATIONS AND SERVICE FOR BUSINESS AND COMMERCIAL AIRCRAFT BOTH ARE BASED IN AUSTIN TEXAS IN THE 10 MONTHS ENDED JAN 31 AUSTIN HAD 132 MILLION IN SALES AND AJ HAD 13 MILLION BANNER BASED IN WASHINGTON DC HAD ABOUT 200 MILLION IN SALES IN THAT PERIOD BANNER SAID THE MOVE WILL ALLOW IT TO CONCENTRATE ON SUPPLYING ROTABLES AND AIRCRAFT HARDWARE TO THE AIR TRANSPORT INDUSTRY ROTABLES ARE PLANE PARTS THAT CAN BE PLUGGED IN OR PULLED OUT EASILY SUCH AS NAVIGATION SYSTEMS AND FUEL PUMPS 9403290040 940329 RAWSTEEL PRODUCTION ROSE 13 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 13 LAST WEEK TO 1879000 TONS FROM 1854000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 4 FROM THE 1806000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 912 OF ITS CAPABILITY LAST WEEK COMPARED WITH 90 THE PREVIOUS WEEK AND 854 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9403290039 940329 LIBERTY BANCORP TO BUY SHARES CHICAGO LIBERTY BANCORP SAID IT RECEIVED CLEARANCE FROM REGULATORS TO REPURCHASE AS MUCH AS 5 OF ITS STOCK OR 150025 COMMON SHARES DURING THE NEXT SIX MONTHS THE HOLDING COMPANY NOTED THAT UNDER EARLIER REPURCHASES IT HAS REPURCHASED 322359 COMMON SHARES 9403290038 940329 INTERNATIONAL SPANISH FIRM SETS LABOR PACT MADRID SPAIN'S SEMIPUBLIC TELECOMMUNICATIONS COMPANY TELEFONICA SA SAID MANAGEMENT AND UNIONS SIGNED A LABOR AGREEMENT FOR 199395 AFTER 15 MONTHS OF NEGOTIATIONS THE AGREEMENT SETS OUT A RETROACTIVE WAGE BOOST OF 296 FOR 1993 IN 1994 THE INCREASE WILL BE EQUAL TO THE RISE IN THE CONSUMER PRICE INDEX THIS YEAR MINUS TWO PERCENTAGE POINTS WHILE THE 1995 RAISE WILL EQUAL THE INCREASE IN THE INDEX FOR 1995 THE ACCORD ALSO OUTLINES MEASURES TO INCREASE THE FLEXIBILITY OF THE WORK FORCE AND IMPROVE THE COMPANY'S COMPETITIVENESS ACCORDING TO TELEFONICA 9403290037 940329 BUSINESS BRIEF RITE AID CORP LOSS IN FISCAL FOURTH PERIOD ATTRIBUTED TO RESTRUCTURING RITE AID CORP REPORTED A FISCAL FOURTHQUARTER LOSS OF 714 MILLION OR 81 CENTS A SHARE MAINLY DUE TO CHARGES FOR A PREVIOUSLY ANNOUNCED RESTRUCTURING AND THE DISPOSAL OF CERTAIN OPERATIONS THE CAMP HILL PA DRUGSTORE CHAIN HAD A PROFIT IN THE YEAREARLIER QUARTER OF 458 MILLION OR 52 CENTS A SHARE THE LATEST PERIOD WHICH ENDED FEB 26 INCLUDED A RESTRUCTURING CHARGE OF 91 MILLION OR 103 A SHARE REFLECTING STEPS THAT INCLUDED THE CLOSING OF ABOUT 200 DRUGSTORES RITE AID ALSO TOOK A CHARGE OF 237 MILLION OR 27 CENTS A SHARE RELATED TO ITS DISPOSAL OF NONDRUGSTORE BUSINESSES THE COMPANY SAID IT WAS SELLING THE BUSINESSES TO FOCUS ON ITS DRUGSTORES AND EXPAND INTO THE MANAGEDCARE END OF THE PHARMACY BUSINESS TOTAL SALES IN THE QUARTER ROSE 3 TO 108 BILLION BUT SALES AT STORES OPEN AT LEAST A YEAR WERE UP JUST 18 HAMPERED BY THE SEVERE WINTER WEATHER RITE AID SAID AS OF THE END OF FEBRUARY THE COMPANY HAD 2690 LOCATIONS FOR THE YEAR NET INCOME WAS 93 MILLION OR 11 CENTS A SHARE DOWN FROM 1324 MILLION OR 151 A SHARE A YEAR EARLIER SALES ROSE 59 TO 406 BILLION 9403290036 940311 LETTERS TO THE EDITOR PREEXISTING CONDITIONS AND THE COOPER BILL MICHAEL TANNER'S CRITIQUE OF THE COOPER HEALTH REFORM BILL COOPER PLAN CLINTON LITE EDITORIAL PAGE FEB 14 PERPETUATES THE MYTH THAT UNDER THIS BILL CONSUMERS CAN BUY HEALTH INSURANCE WHEN THEY NEED IT AND NOT BE SUBJECT TO PREEXISTINGCONDITION RESTRICTIONS THIS IS NOT THE CASE ON THE CONTRARY THE COOPER BILL WOULD DENY FULL HEALTHCARE PROTECTION TO PEOPLE WITH PREEXISTING CONDITIONS INSURERS COULD LIMIT THEIR COVERAGE FOR THE FIRST SIX MONTHS OF ENROLLMENT UNLESS A CUSTOMER WAS MERELY SWITCHING FROM ONE INSURANCE PLAN TO ANOTHER CHILDREN WITH DIABETES WOULD NOT GET THEIR NEEDED INSULIN FOR SIX MONTHS MEN AND WOMEN WITH HIGH BLOOD PRESSURE WOULD BE OUT OF LUCK FOR ANY NUMBER OF RELATED HEALTH NEEDS FOR THIS PERIOD FOR THEM AND FOR THOSE AFFLICTED WITH CANCER AND OTHER LIFETHREATENING DISEASES A SIXMONTH WAIT FOR COVERAGE COULD MEAN LIFE OR DEATH THE ADMINISTRATION'S BILL AND THE WELLSTONE/MCDERMOTT/CONYERS SINGLEPAYER BILL ARE THE ONLY HEALTH REFORM BILLS BEFORE CONGRESS THAT FULLY PROTECT CONSUMERS WITHOUT INTERRUPTION REGARDLESS OF PRESENT HEALTH STATUS SEE RELATED LETTERS LETTERS TO THE EDITOR CAN WE GUARANTEE HEALTH INSURANCE WSJ MARCH 29 1994 9403110043 YY94 MM03 9403290034 940303 POLITICS & PEOPLE WHITEWATER IT'S THE COVERUP MORE THAN THE DEAL BY ALBERT R HUNT CALL IT THE WHITEWATER CONUNDRUM THE SOCALLED WHITEWATER SCANDAL WILL EMBARRASS PRESIDENT CLINTON COST HIM SOME EXTRA TAXES AND RAISE SUBSTANTIVE ETHICAL QUESTIONS ABOUT THE FIRST LADY'S CONDUCT AS A PRIVATE LAWYER BUT THE BETTING HERE IS THAT THERE WON'T BE ANY POLITICAL SMOKING GUN OR CERTAINLY ANY FINDINGS OF CRIMINALITY INVOLVING THE FIRST FAMILY IF THE CURRENT PERFORMANCE CONTINUES HOWEVER IT'S LESS THAN A LONGSHOT BET THAT ONE OR TWO WHITE HOUSE AIDES COULD END UP IN THE SLAMMER NOT FOR WHAT HAPPENED IN ARKANSAS IN THE 1980S BUT FOR THE WAY MATTERS ARE BEING MISHANDLED IN WASHINGTON IN THE 1990S A WHITEWATER PARANOIA AFFLICTS THE CLINTON WHITE HOUSE TEAM THEY'VE UNDERREACTED AT THE WRONG TIMES ON SUPPLYING INFORMATION AND THE NEED FOR AN OUTSIDE INVESTIGATION THEY'VE OVERREACTED AT OTHERS ELEVATING CRITICS WITH INTEMPERATE ATTACKS THE PRESIDENTIAL COUNSEL BERNARD NUSSBAUM SUPPOSEDLY THE ETHICAL GATEKEEPER IN THE WHITE HOUSE HAS CAUSED MORE PROBLEMS THAN HE'S PREVENTED WHITE HOUSE AIDES ACTING IN A CARELESS AD HOC CAMPAIGNTYPE MANNER SEEM OBLIVIOUS TO THE RISKS THEY FACE IF THEY'RE EVER DEPOSED ON THIS ISSUE THE RESULT IS A TEXTBOOK CASE OF THE COMMON OBSERVATION OF DEFENSE LAWYERS WHAT'S DONE AFTER AN ALLEGED OFFENSE CREATES MORE CULPABILITY THAN THE ACT ITSELF WHY ONE ANSWER IS THAT THERE HAS BEEN NO ONE IN THIS WHITE HOUSE WITH THE INDEPENDENT JUDGMENT OR STANDING TO WALK INTO THE OVAL OFFICE ON SOMETHING THIS SENSITIVE AND TELL THE PRESIDENT HOW BADLY IT'S BEING BOTCHED THE OTHER PROBABLY MORE IMPORTANT ANSWER IS HILLARY CLINTON PREVIOUSLY THE FIRST LADY WOULD TAKE SUCH BAD NEWS TO HER HUSBAND BUT WHITEWATER MAY POSE EVEN MORE DANGER TO HER THAN TO THE PRESIDENT AND THE BUNKER MENTALITY AT THE WHITE HOUSE IS A REFLECTION OF HILLARY CLINTON MS CLINTON IS A STRONG WOMAN WHO DRIVES HER IDEOLOGICAL FOES CRAZY THEY RESORT TO CHEAP SHOTS LIKE LABELING HER AN INEFFECTIVE LEFTWING ZEALOT OR ENGAGING IN PERSONAL INNUENDO IN FACT SHE'S A VALUABLE PUBLIC SERVANT AND PERCEPTIVE POLITICAL ADVISER BUT NOT ON THE MATTERS THAT AFFECT HER EARLIER THIS YEAR DURING THE SOCALLED TRAVELGATE FLAP WHITE HOUSE AIDE JOHN PODESTA REPORTEDLY BROUGHT SOME BAD NEWS TO THE FIRST LADY AND WAS SLAPPED DOWN THAT STORY HAS SPREAD AND IT'S PRODUCED A CHILLING REIGN OF FEAR ON WHITEWATER IN REALITY THE CHARGE BY SOME NIXON APOLOGISTS THAT THIS IS REMINISCENT OF WATERGATE IS PREPOSTEROUS WHITEWATER INVOLVES RELATIVELY SMALL DEALINGS A DECADE AGO WHEN BILL CLINTON WAS GOVERNOR OF ARKANSAS IN CONTRAST TO THE WHOLESALE CRIMINAL MUGGING OF THE CONSTITUTION THAT THE NIXON WHITE HOUSE COMMITTED A GOOD EXAMPLE OF WHITEWATER HYPERBOLE IS THE 1985 CLINTON FUNDRAISER HOSTED BY WHITEWATER PARTNER JAMES MCDOUGAL THAT ALMOST CERTAINLY INVOLVED SOME ILLICIT FUNDS BUT IT'S EXTREMELY DOUBTFUL THAT MR CLINTON WOULD HAVE KNOWN ABOUT THAT AN INCUMBENT GOVERNOR ESPECIALLY IN A STATE LIKE ARKANSAS HAS AN EASY TIME RAISING MONEY LEGALLY SO THERE WAS NO REASON FOR HIM TO COUNTENANCE A SHADY FUNDRAISER THE INCENTIVE FOR THE INFLUENCEPEDDLING MR MCDOUGAL WAS TO TELL HIS FRIEND THE GOVERNOR WHAT A SUCCESSFUL EVENT IT WAS NOT TO CONFESS THAT ACTUALLY IT WAS TAINTED UNLIKE SOME OTHER POLITICIANS MONEY NEVER HAS BEEN A DRIVING FORCE FOR BILL CLINTON THIS WAS PROBABLY BEST PUT BY THE WASHINGTON POST'S DAVID BRODER WHO ON MEET THE PRESS RECENTLY SAID BLUNTLY IF YOU TOLD ME BILL CLINTON WAS VERY HORNY OR VERY AMBITIOUS I WOULD HAVE NO TROUBLE BELIEVING IT IF YOU TOLD ME HE WAS MONEYHUNGRY AND WAS CUTTING CORNERS FOR MONEY I'D SAY THAT DOESN'T SOUND LIKE THE BILL CLINTON I KNOW TO BE SURE WHEN SPECIAL COUNSEL ROBERT FISKE IS THROUGH WHITEWATER WILL TAKE A TOLL ON THE CLINTONS THERE SEEMS LITTLE DOUBT THEY WILL OWE MORE TAXES ALTHOUGH TAX EXPERTS SAY IT'S UNLIKELY THAT ANY FRAUD CASE COULD BE BROUGHT AGAINST THEM AND BILL CLINTON WILL BE EMBARRASSED BY THE HIGHLIGHTING OF HIS TERRIBLE JUDGMENT IN ASSOCIATING WITH THE LIKES OF JAMES MCDOUGAL DAN LASATER AN ARKANSAS INVESTOR AND CONVICTED COCAINE DISTRIBUTOR AND DAVID HALE A CLINTONAPPOINTED JUDGE NOW UNDER INDICTMENT BUT THE MOST LETHAL BLOWS ARE LIKELY TO BE DIRECTED AGAINST THE FIRST LADY WHO UNWISELY WAS INVOLVED IN A TRIANGULAR CONFLICT OF INTEREST AS THE SPOUSE OF THE GOVERNOR AND A WHITEWATER INVESTOR SHE WAS REPRESENTING MR MCDOUGAL BEFORE STATE REGULATORS AND SHE WAS THE FAMILY DECISIONMAKER ON INVESTMENTS MS CLINTON AND HER FRIENDS ARE DETERMINED TO RESIST THIS IT WON'T WORK EARLIER WHITE HOUSE SOURCES SAY SHE OPPOSED A SPECIAL COUNSEL BECAUSE THERE WAS NO DAMAGE CONTROL PLAN BUT THEN CLUNG TO THAT VIEW WHEN IT WAS NO LONGER TENABLE SIMILARLY A GOOD COUNSEL TODAY WOULD ADVISE HER THAT A WHITEWATER HIT IS INEVITABLE BUT IT'S NOT THE END OF THE WORLD OTHER CLINTON OPERATIVES NEED TO UNDERSTAND THEIR CAMPAIGNSTYLE TACTICS AREN'T WORKING WHEN PAUL BEGALA GOES ON CNN'S INSIDE POLITICS AND ATTACKS REP JIM LEACH PERHAPS THE MOST NONPARTISAN GOP MEMBER OF THE HOUSE AS A POLITICALLY INSPIRED HATCHET MAN ON THIS ISSUE IT BACKFIRES THE SAME WHEN OTHER CLINTONITES GO AFTER NEW YORK SEN ALFONSE D'AMATO IT'S EXTRAORDINARY THAT THE CLINTON TACTICS HAVE PROVIDED EVEN A SEMBLANCE OF CREDIBILITY TO THIS NEW YORK REPUBLICAN ON AN ETHICS ISSUE GIVEN HIS SLEAZY PAST AL D'AMATO LECTURING ON ETHICS SHOULD BE AS CREDIBLE AS LOUIS FARRAKHAN PREACHING ABOUT TOLERANCE BUT THE WHITE HOUSE BLUNDERS ON WHITEWATER ARE ENDLESS THE LATEST BEING DEPUTY TREASURY SECRETARY AND ACTING RTC HEAD ROGER ALTMAN'S MEETING WITH THREE TOP WHITE HOUSE AIDES TO BRIEF THEM ON A WHITEWATERRELATED ISSUE MR ALTMAN NOW HAS RECUSED HIMSELF FROM ANY WHITEWATER DEALINGS BUT THE BRIEFING WAS ATTENDED BY WHITE HOUSE COUNSEL NUSSBAUM WHO NOT ONLY SHOULDN'T HAVE PARTICIPATED BUT SHOULD HAVE STOPPED IT BEFORE IT STARTED IF WHITEWATER IS TO BE ONLY AN EMBARRASSMENT RATHER THAN A CANCER THAT EATS AWAY AT THE PRESIDENT'S CREDIBILITY THREE STEPS ARE IN ORDER MR NUSSBAUM A NICE MAN AND AN ABLE WALL STREET LAWYER MUST BE REPLACED HE'S OUT OF HIS POLITICAL DEPTH AT THE WHITE HOUSE A SMALL WHITEWATER TEAM MUST BE FORMED TO DEAL WITH THE INTRICACIES OF THE SCANDAL AS WHITE HOUSE HOPES THAT IT WOULD RECEDE AFTER THE APPOINTMENT OF MR FISKE HAVEN'T MATERIALIZED A LEADING OUTSIDE POLITICAL ADVISER HAS SUGGESTED THIS IT SHOULD BE HEADED BY SOMEONE WITH NO PREVIOUS CONNECTIONS TO THE ISSUE SOMEONE MUST TELL MS CLINTON THAT SHE'S CAUSING A LOT OF THE PROBLEMS AND A CONTINUATION THREATENS THINGS FAR MORE IMPORTANT TO HER SUCH AS HER ROLE IN THE HEALTH CARE DELIBERATIONS IN SHORT THE FIRST LADY NEEDS A HILLARY CLINTON SEE RELATED LETTER LETTERS TO THE EDITOR THEM DRY BONES WSJ MARCH 29 1994 9403030003 YY94 MM03 9403290033 940329 WAXMAN EXTENDS CALL FOR DEBT BEDFORD HEIGHTS OHIO WAXMAN INDUSTRIES INC SAID IT EXTENDED ITS PURCHASE OFFER FOR ALL BUT NOT LESS THAN 66 MILLION OF ITS 1375 SENIOR SUBORDINATED NOTES A WEEK TO FRIDAY INVESTORS HAVE TENDERED 874 MILLION PRINCIPAL AMOUNT OF THE NOTES OF WHICH ABOUT 988 MILLION IS OUTSTANDING WAXMAN WILL PAY 1065 IN CASH PER 1000 PRINCIPAL AMOUNT WITH INTEREST ACCRUED TO BUT NOT INCLUDING THE PAYMENT DATE FOR THE NOTES WHICH ARE DUE JUNE 1 1999 THE COMPANY A SUPPLIER TO THE HOME REPAIR AND REMODELING MARKET SAID THE EXTENSION IS TO COORDINATE THE OFFER WITH AN OVERALL DEBT REFINANCING WHICH IT EXPECTS TO COMPLETE MONDAY THE OVERALL REFINANCING INCLUDES 39 MILLION OF SENIOR SECURED NOTES 2 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES AND 25 MILLION OF DOMESTIC BANK DEBT 9403290032 940329 AMERICAN FINANCIAL DEBENTURES CINCINNATI AMERICAN FINANCIAL CORP SAID IT EXTENDED ITS EXCHANGE OFFER FOR ITS DEBENTURES OUTSTANDING TO APRIL 15 FROM LAST FRIDAY AMERICAN FINANCIAL WHICH HAS INTERESTS IN PROPERTY AND CASUALTY INSURANCE ANNUITY PROGRAMS AND PORTFOLIO INVESTING SAID INVESTORS HAVE TENDERED 192 MILLION PRINCIPAL AMOUNT OF THE 5487 MILLION PRINCIPAL AMOUNT OUTSTANDING AMERICAN FINANCIAL IS OFFERING 975 DEBENTURES DUE APRIL 20 2004 PLUS CASH FOR ALL ITS DEBENTURES OUTSTANDING 9403290030 940329 BUSINESS WORLD MR SMITH' CAN'T PULL PLUG ON ELECTRIC CAR RULE BY TIM W FERGUSON SACRAMENTO BERNIE RICHTER IS ONE OF THE TERMLIMIT BABIES OF THE CALIFORNIA LEGISLATURE A 62YEAROLD BUSINESSMAN WHO RODE A TAXPAYER REVOLT IN HIS RURAL DISTRICT NORTH OF THE CAPITAL INTO AN ASSEMBLY SEAT IN 1992 BY 1998 HE'LL GO HOME THERE'S A BIT OF JIMMY STEWART'S MR SMITH CHARACTER IN THIS PASSIONATE MAN WITH A MAIN STREET SENSIBILITY HE'S A FREEMARKET REPUBLICAN BUT TOO INDEPENDENT OR IDEALISTIC TO FIT NEATLY INTO THE CAPITOL'S LONGSTANDING AND OFTEN CYNICAL PARTISAN WARFARE SOMETIMES HE LEAVES THE SHARPIES AND HACKS OF THE STATEHOUSE SHAKING THEIR HEADS THIS WAS APPARENT LAST WEEK WHEN HE PUSHED A BILL TO SIDETRACK CALIFORNIA'S ZEROEMISSION CAR MANDATE THIS REGULATION WOULD FORCE THE INTRODUCTION OF BATTERYPOWERED AUTOS THREE YEARS HENCE HANG THE COST THOUGH IT MAY NEVER BE PRACTICAL THE ELECTRIC VEHICLE EV IS A CUTE TOTEM OF OUR ENVIRONMENTAL ASPIRATIONS TO OPPOSE IT IS TO TAKE A THOUSAND VOLTS TO YOUR GREEN VOTING RECORD MR RICHTER NOT ONLY CHALLENGED THE MANDATE BUT DID SO IN FIERY EVEN RANDIAN RHETORIC HE ALLUDED TO THE COMMAND SOVIET ECONOMY AND SPOKE OF A BIG LIE BY WHICH THE VERY PEOPLE WHO MAKE CARS CAN BE DISCREDITED SO THAT THEIR ADVICE AND OPINIONS COUNT FOR NOTHING BUT SOME BUREAUCRAT IN THE CARB CALIFORNIA AIR RESOURCES BOARD OR THE ENVIRONMENTAL PROTECTION AGENCY OR SOME POLITICIAN IN THE LEGISLATURE ALL OF WHOM HAVE NEVER IN THEIR LIVES PRODUCED ANYTHING SHALL ORDER THESE LARGE COMPANIES TO PRODUCE WHAT THEY THINK THEY SHOULD PRODUCE RICHARD KATZ CHAIRMAN OF THE ASSEMBLY TRANSPORTATION COMMITTEE THAT WAS CONSIDERING THE BILL THANKED MR RICHTER FOR HIS ENLIGHTENING REMARKS DRAWING TITTERS FROM THE FEW HUNDRED IN THE JESSE MARVIN UNRUH HEARING ROOM A HUGE PORTRAIT OF BIG DADDY THE FORMER ASSEMBLY SPEAKER LOOKS DOWN ON THE AUDIENCE THE DEFEAT OF THIS CHALLENGE WAS FOREORDAINED AS IS MOST EVERYTHING IN SPEAKER WILLIE BROWN'S BAILIWICK BUT EVEN SOME OF MR RICHTER'S FELLOW REPUBLICANS FOUND HIS POLEMIC ONLY MORE REASON TO HIT THE ROAD THE BILL GOT JUST TWO VOTES ON THE 16MEMBER PANEL ANOTHER PROBLEM FOR MR RICHTER WAS HIS NECESSARY ALLY THE AUTO MANUFACTURERS LEGISLATORS USUALLY CARRY A BILL ON BEHALF OF SOME INTEREST GROUP ALTHOUGH BATTLING THE EV IS A PERSONAL CAUSE FOR MR RICHTER HIS BROTHER IS A CAR BUFF THE ANTIMANDATE LEGISLATION WAS REGARDED AS DETROIT'S BILL THE DEADLINEDREADING INDUSTRY ASSISTED MR RICHTER THOUGH IT PREFERS TO TRY TO SWING A DEAL WITH CARB WHICH DREW UP AND ENFORCES THE MANDATE NEITHER OPTION IS PROMISING WITH LITTLE INVESTMENT IN THE STATE THE AUTO MAKERS HAVE FEW FRIENDS IN ANY QUARTER CRITICS HOUND CAR MAKERS OVER VARIOUS TECHNOLOGICAL AND SAFETY IMPROVEMENTS THEY HAVE SUPPOSEDLY STIFLED OVER THE YEARS RICHARD KLIMISCH ENGINEERING VICE PRESIDENT AT THE AUTO MAKERS' TRADE GROUP JOKINGLY REFERRED AT THE HEARING TO THE 50MILEPERGALLON CARBURETOR HIDDEN IN A DESK DRAWER BUT FOR MANY PEOPLE INCLUDING FRUSTRATED ENTREPRENEURS SUSPICIONS ABOUT DETROIT'S WAYS ARE REAL AND NOT WITHOUT REASON BIG CORPORATIONS LIKE ALL ENTRENCHED ENTITIES RESIST CHANGE THE AUTO MAKERS ESPECIALLY BEHAVED LIKE OLIGARCHS UNTIL THE 1980S EVEN RECENTLY THEY'VE BEEN COZY WITH THE WHITE HOUSE NONETHELESS DETROIT IS MORE ATTUNED TO CUSTOMER WISHES NOW AND IT DOESN'T SEEM TO THINK SAPPY SENTIMENT ABOUT THE EV TRANSLATES INTO MUCH REAL DEMAND IN THE NEAR FUTURE THE AUTO MAKERS CAN POINT TO SEVERAL TECHNOLOGY BUSTS ANTILOCK TRUCK BRAKES CATALYTIC CONVERTERS INTERLOCKING STARTERS DIESEL CARS THAT WERE DIRECTLY OR INDIRECTLY FORCED BY GOVERNMENT EVEN THE AIR BAG WHICH EVENTUALLY CAUGHT ON WITH THE PUBLIC MAY YET PROVE TO BE A MISTAKE MR RICHTER SOUGHT TO BE THE CAR COMPANIES' DEFENDER BUT IT'S A MISTAKE TO MAKE TOO MUCH OF DETROIT PRO OR CON FOR ONE THING OTHER POWERFUL CORPORATE INTERESTS ARE ALSO INVOLVED IN THIS FIGHT THERE ARE THE ELECTRIC UTILITIES WHICH IN CONJUNCTION WITH GOVERNMENT ARE PREPARED TO SUBSIDIZE THE BUYERS OF BATTERY CARS AT THE EXPENSE OF GENERAL RATEPAYERS AND THEN THERE ARE THE OIL COMPANIES DISTRUSTED EVEN MORE THAN THE AUTO MAKERS BUT STILL BIG BACKSTAGE PLAYERS THEY FINANCED A MAJOR STUDY CHALLENGING THE POLLUTION GAINS TO BE HAD FROM EVS AND CALCULATING THEIR TREMENDOUS OVERALL COSTS AN ALTERNATIVEVEHICLE MARKET DOUBTLESS WILL EXIST IN THE FUTURE THOUGH IT LIKELY WON'T FIT THE SPECS THAT THE CALIFORNIA PROMOTERS HAVE DRAWN UP EVS ALREADY ARE PROFITABLE FOR COMPANIES THAT MAKE THEM FOR NICHES SUCH AS SHUTTLES AND DELIVERIES BUT A NONBATTERY TECHNOLOGY COULD BE IN THE OFFING FROM UNSUBSIDIZED CAPITALISTS AND DETROIT MIGHT YET BE SURPRISED EVEN SOME OF THE WORK BEING SPAWNED BY THE MANDATE MAY HAVE MASSMARKET USE JUST AS THE SPACE PROGRAM GENERATED COMMERCIAL SPINOFFS THE IMPORTANT THING IS NOT TO HEM IN TECHNOLOGY WITH STIPULATIONS THAT ARE TOO NARROW AND MISDIRECT PRECIOUS RESOURCES PRESCRIBED INNOVATION ALSO LEADS TO THE CREATION OF A LOBBY DEDICATED EXPRESSLY TO THAT NARROW GOAL AND FOREVER UNWILLING TO ABANDON IT CALIFORNIA ALREADY HAS SEEN THIS HAPPEN THAT'S WHY SO MANY GUYS IN SUITS PACKED LAST WEEK'S HEARING MR RICHTER UNDERSTANDS THAT AND ATTACKED THE FULCRUM OF THIS ACTIVITY OTHER LEGISLATORS NOT SO WILLING TO BE SPOILERS STILL WONDER WHETHER A ZEROEMISSION FIXATION WILL DELAY THE ARRIVAL OF A MORE PRACTICAL ENGINE NEARLY AS CLEAN THAT ISSUE LIES AHEAD FOR CARB ITS STAFF GIVES NO SIGN OF BACKING OFF CITING INDUCED PROGRESS TOWARD MEETING THE MANDATE THE AGENCY'S EDICT BUILDS TOWARD A REQUIREMENT OF MORE THAN 200000 NOEMISSION CARS SOLD ANNUALLY IN CALIFORNIA BY EARLY NEXT DECADE THE AGENCY IS NOW HEADED BY JACQUELINE SCHAFER WHO WAS AN ENVIRONMENTAL APPOINTEE OF RONALD REAGAN WHILE HE WAS PRESIDENT BUT WITH CARB'S BIENNIAL REVIEW OF ITS POLICY LOOMING SHE SO FAR HAS TOED THE EV LINE MEANWHILE THE ELECTRIC LOBBY IS ROUNDING UP NEW CELEBRITIES ROBERT STEMPEL THE FORMER GENERAL MOTORS BOSS IS UNDERTAKING AN EV VENTURE EVEN AS LEANER AND MEANER GM BACKS AWAY FROM THE EXPERIMENT THAT HE AND ROGER SMITH CHAMPIONED NICOLAS HAYEK OF SWATCH WATCH FAME IS TEAMING WITH MERCEDESBENZ TO TRY SOME HEAVYDUTY PUTTPUTTS THAT INCLUDE AN ALLELECTRIC MODEL SURELY THE PROSPECT OF A GUARANTEED MARKET IN CALIFORNIA AND PERHAPS ELSEWHERE IN THE US WILL ATTRACT OTHERS IF THE MANDATE IS KEPT SOME OF THEM WILL REALIZE BOOTY EVEN IF MOTORISTS NEVER WARM TO THEIR WARES THE BIG AUTO MAKERS WILL THROW THEM ENOUGH BUSINESS TO MEET THE QUOTAS AND EVERYBODY ELSE CAN PAY A LITTLE EXTRA FOR THEIR CARS TO COVER EV MARKETING COSTS IT MAY NOT BE A DISASTER AS MR RICHTER PREDICTS JUST ANOTHER TAILFIN ON THE NATIONAL ECONOMY BUT UNLIKE HIM AND HIS COLLEAGUES THE REGULATION DOES NOT HAVE AN EXPIRATION DATE 9403290029 940316 REVIEW & OUTLOOK EDITORIAL LANGUAGE WARS PRIME MINISTER EDOUARD BALLADUR'S FORCES HAVE ANNOUNCED THEIR INTENTION TO SPONSOR A BILL THAT WOULD REQUIRE ALL PRIVATE BUSINESSES IN FRANCE TO CONDUCT THEIR OPERATIONS IN FRENCH THIS CALLS FOR RETALIATION JUST AS NATIONS RETALIATE AGAINST FRENCH TRADE PROTECTIONISM BY SLAPPING PUNITIVE DUTIES ON FRENCH WINE MAYBE IT'S TIME TO RETALIATE AGAINST LINGUISTIC CHAUVINISM BY BOYCOTTING THE USE IN THE US OF SAVOIR FAIRE JE NE SAIS QUOI RSVP AND CHERCHEZ LA FEMME FOR THAT MATTER WE MIGHT EVEN BAR THE WORD CHAUVINISM DERIVED FROM NAPOLEON'S BELLICOSE SOLDIER NICOLAS CHAUVIN NONFRENCH SCHOOLCHILDREN WHO ARE CAUGHT SINGING FRERE JACQUES WILL BE PUNISHED SEVERELY IF THE FRENCH THINK LA PATRIE EST EN DANGER FROM ALL THOSE AMERICAN IDIOMS AND TECHNICAL TERMS THINK OF THE MISPRONUNCIATION RISKS THE NONFRENCH RUN TRYING TO BUY A TICKET TO CAEN INSTEAD OF CANNES WELL ACTUALLY NO NATION IS IN DANGER WE WON'T DENY THAT LANGUAGE IS AN EMOTIONAL ISSUE BUT WITH THIS ABSURD MEASURE THE FRENCH GOVERNMENT HAS CONFUSED NATIONAL PRIDE WITH CULTURAL INTOLERANCE INDEED THIS LEGISLATION FEEDS OFF PAROCHIALISM AND WILL DO NOTHING MUCH BUT ENCOURAGE MORE PAROCHIALISM IF IT HAS ANY EFFECT AT ALL WHICH IS HIGHLY UNLIKELY IT WILL CAUSE FOREIGN BUSINESSPEOPLE TO SHUN FRANCE IN FAVOR OF MORE TOLERANT PRECINCTS IN EUROPE PREVIOUS ATTEMPTS BY FRANCE TO DEFEND ITS CULTURAL PURITY SUCH AS ITS REFUSAL TO INCLUDE AMERICAN MOVIES AMONG THE GOODS THAT WOULD BENEFIT FROM THE GATT HAVE BEEN MET MOSTLY WITH SMIRKS THAT MR BALLADUR HAS CHOSEN TO THROW HIS WEIGHT BEHIND SUCH A BILL DOES NOT COME AS A TOTAL SURPRISE A BATTLE IS SHAPING UP FOR NEXT YEAR'S PRESIDENTIAL ELECTION AND EVERY FRENCH POLITICIAN KNOWS THE USEFULNESS OF CULTURAL POLITICS THE FRENCH LANGUAGE DOES INDEED HAVE BEAUTY BUT THERE ALSO IS SOME BEAUTY TO THE CONCEPT OF FREEDOM OF SPEECH THERE ALREADY IS CHATTER THAT LIMITING BUSINESS AFFAIRS TO FRENCH COULD VIOLATE THE 1957 TREATY OF ROME AS WELL AS NUMEROUS OTHER EUROPEAN UNION REGULATIONS BEFORE DESCENDING INTO THE HALLS OF JURISPRUDENCE HOWEVER IT'S IMPORTANT TO HIGHLIGHT THE IMPLICATIONS OF WHAT THE GOVERNMENT HAS PROPOSED CONSIDER FIRST THAT VIOLATIONS OF THIS LEGISLATION AS WRITTEN COULD RESULT IN MONETARY FINES AND EVEN INCARCERATION ENFORCEMENT CONJURES UP COMICAL IMAGES OF A NEW LAYER OF STATE BUREAUCRACY THE LANGUAGE POLICE PATROLLING THE BUSINESS QUARTER IN PARIS IN SEARCH OF VIOLATIONS THIS ALSO RAISES THE QUESTION OF JUST WHAT WOULD CONSTITUTE A BREACH OF THE LAW A BAD ACCENT A MISPLACED MODIFIER BUT IT'S ALSO APPROPRIATE TO ASK WHETHER IT IS THE RESPONSIBILITY OF GOVERNMENT TO INTERVENE IN THIS REALM OF PRIVATE LIFE FRENCH INSTITUTIONS HAVE LONG SOUGHT TO REGULATE LANGUAGE FROM THE TOP THAT'S PROVING MORE DIFFICULT IN THE INFORMATION AGE WHEN GLOBAL INFLUENCES COME FROM EVERYWHERE LANGUAGE IN FACT SERVES AS ONE OF THE CLASSIC EXAMPLES OF SPONTANEOUS NONREGULATED COOPERATION PEOPLE CREATE AND REFORM LANGUAGES OUT OF A SERIES OF VOLUNTARY DECISIONS THE RESULT IS A BEAUTIFUL BODY OF WORDS AND MEANINGS CREATED BY AN INVISIBLE HAND WHICH REMINDS US EVEN IF THIS LANGUAGE WAR GETS HOT THERE IS ONE FRENCH EXPRESSION WE WILL NEVER BOYCOTT LAISSEZ FAIRE SEE RELATED LETTER LETTERS TO THE EDITOR ALORS WSJ MARCH 29 1994 9403160049 YY94 MM03 9403290028 940329 MARKETING BRIEF NOTED WHO'S NEWS JAMES GIANOPULOS WAS NAMED PRESIDENT INTERNATIONAL THEATRICAL AND TOM SHERAK WAS NAMED SENIOR EXECUTIVE VICE PRESIDENT AT NEWS CORP'S TWENTIETH CENTURY FOX MOVIE STUDIO TOM POLLOCK CHAIRMAN OF MCA INC'S MOTION PICTURE GROUP SIGNED A NEW LONG TERM CONTRACT THE COMPANY SAID MCA A UNIT OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO WOULDN'T DISCLOSE THE TERMS OF THE CONTRACT BUT INDUSTRY EXECUTIVES SAID MR POLLOCK HAS AGREED TO HEAD THE MOTION PICTURE GROUP FOR AT LEAST FOUR MORE YEARS HE WILL ALSO JOIN CINEPLEX ODEON CORP'S BOARD SUCCEEDING SID SHEINBERG MCA PRESIDENT 9403290027 940329 BUSINESS BRIEF LANDMARK GRAPHICS CORP FISCAL 3RDQUARTER CHARGES TO RESULT FROM ACQUISITION LANDMARK GRAPHICS CORP HOUSTON SAID IT WILL RECORD A CASH CHARGE OF ABOUT 2 MILLION OR 15 CENTS A SHARE AND MAY RECORD AN ADDITIONAL NONCASH CHARGE OF 10 MILLION OR 74 CENTS A SHARE IN ITS FISCAL THIRD QUARTER ENDING THURSDAY THE OILEXPLORATIONSERVICES COMPANY SAID THE 2 MILLION CHARGE IS FOR COSTS ASSOCIATED WITH ITS ACQUISITION OF ADVANCE GEOPHYSICAL CORP OF DENVER LANDMARK REQUESTED A RULING FROM THE SECURITIES AND EXCHANGE COMMISSION ON WHETHER IT MUST RECORD THE 10 MILLION CHARGE ASSOCIATED WITH ITS NEW UNIT'S COMPENSATION PLANS FOR THE YEAREARLIER QUARTER LANDMARK HAD NET INCOME OF 19 MILLION OR 18 CENTS A SHARE ON REVENUE OF 236 MILLION THE SPOKESMAN SAID ANALYSTS PREDICTED EARNINGS OF 25 CENTS A SHARE TO 27 CENTS A SHARE ON REVENUE OF 30 MILLION FOR THE CURRENT QUARTER SAMUEL RUTT BRIDGES WAS NAMED A DIRECTOR OF LANDMARK AND PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS ADVANCE GEOPHYSICAL UNIT MR BRIDGES 43 WAS CHAIRMAN AND DIRECTOR OF RESEARCH FOR ADVANCE GEOPHYSICAL HIS BOARD APPOINTMENT INCREASES MEMBERSHIP TO SEVEN 9403290025 940329 WOMEN IN MANAGEMENT A WAITING GAME CORPORATE RANKINGS THE FIRST AND THE LAST STEELY COLD GREETS LADIES' AT NUCOR WORKING FOR NUCOR CORP A STEEL COMPANY IN CHARLOTTE NC DOESN'T APPEAL TO A LOT OF LADIES SAYS PERSONNEL MANAGER JIM COBLIN ONLY 26 OR 11 OF THE 423 MANAGERS ARE WOMEN PUTTING NUCOR AT THE BOTTOM OF THE JOURNAL'S LIST OF 200 COMPANIES MR COBLIN ADDS IT IS CERTAINLY NOT AN UNWILLINGNESS TO HIRE LADIES IT IS AN UNWILLINGNESS TO COME TO THE STEEL INDUSTRY EVEN IN THE HANDS OF A FIREBRAND FEMINIST NUCOR COULD PRESENT A CHALLENGE ABOUT 80 OF THE COMPANY'S 5800 EMPLOYEES WORK IN FACTORIES NEAR 2300DEGREE FURNACES AND LOTS OF DIRT ALSO THE COMPANY SAYS WOMEN WHO DO INTERVIEW FOR JOBS USUALLY LOSE INTEREST AS SOON AS THEY DISCOVER EMPLOYEES ARE ROTATED AMONG THE MORNING AFTERNOON AND NIGHT SHIFTS WHICH IS A COMMON PRACTICE IN THE INDUSTRY IF THEY HAVE CHILDREN TO TAKE CARE OF OR IF THEY HAVE AN OUTSIDE LIFE IT'S DIFFICULT TO FIT THAT IN MR COBLIN SAYS TURNOVER IS LOW AT THIS MINIMILL AND PROMOTIONS COME FROM WITHIN FOR THESE REASONS YOU ALMOST HAVE TO BE WILLED A JOB AT NUCOR SAYS JOHN CORRENTI PRESIDENT MR COBLIN SAYS THAT HE WANTS TO BRING MORE WOMEN IN BUT CLEARLY THE COMPANY HASN'T MADE IT A PRIORITY OTHER MINIMILLS HAVE LOW PERCENTAGES OF WOMEN MANAGERS BUT FEW AS LOW AS NUCOR'S FOR 41YEAROLD MINDY HODGE OVERSEEING MEN DIDN'T COME EASILY OF COURSE I WAS A NERVOUS WRECK FOR THE FIRST FEW MONTHS SAYS MS HODGE WHO MANAGES SEVEN MEN AS SUPERVISOR OF THE SUPPLY WAREHOUSE IN NORFOLK NEB WITH ONLY 20 WOMEN AT THE 500PERSON PLANT MS HODGE SAYS SHE WASN'T EVEN SURE THE COMPANY WOULD HIRE A WOMAN FOR THE JOB WHEN IT BECAME AVAILABLE SEVERAL YEARS AGO AFTER SHE GOT THE OFFER SHE BEGAN WORRYING WHETHER HER COLLEAGUES WOULD ACCEPT HER AS A MANAGER AT FIRST MS HODGE WHO HAD WORKED FOR 17 YEARS AT NUCOR IN VARIOUS CLERICAL JOBS SAYS SHE FELT SCRUTINIZED EXPECTING SOMEONE TO CHALLENGE HER AUTHORITY I KEPT WAITING FOR WHO'S GOING TO JUMP UP IN FRONT OF ME AND MESS ME UP SHE SAYS NO ONE EVER DID AFTER TWO YEARS IN HER NEW ROLE MS HODGE SAYS SHE NOW FEELS THAT MEN ARE COMFORTABLE WITH HER BUT I DON'T DO THE LUNCH THING WITH MEN SHE SAYS I DON'T THINK IT WOULD LOOK RIGHT BECAUSE SHE IS SINGLE SHE IS PARTLY CONCERNED ABOUT BECOMING A TARGET OF OFFICE GOSSIP SEE RELATED ARTICLES THE WAITING GAME WOMEN MAKE STRIDES BUT MEN STAY FIRMLY IN TOP COMPANY JOBS FEMALE MANAGEMENT GAINS ARE IMPEDED BY CULTURE STILL DOMINATED BY MALES FROM FORD MOTOR TO SARA LEE AND WELLS FARGO BANKS ON LOTS OF WOMEN WSJ MARCH 29 1994 9403290024 940304 LEISURE & ARTS ON SPORTS BULLS GIVE FANS BUM STEER IN NEW ARENA BY FREDERICK C KLEIN CHICAGO I RETURNED THIS WEEK FROM THE SNOWFIELDS OF NORWAY TO THOSE OF CHICAGO TO FIND A MISSIVE FROM THE CHICAGO BULLS MY FRIENDLY NEIGHBORHOOD PROFESSIONAL BASKETBALL TEAM IN AUGUST THE BULLS INFORMED ME THE 21ST CENTURY IN CHICAGO SPORTS AND ENTERTAINMENT BEGINS THE GUNJUMPER I WAS TOLD WILL BE THE OPENING OF THE SHINY UNITED CENTER WHICH WILL HOUSE THE BULLS THE HOCKEY CHICAGO BLACKHAWKS AND VARIOUS TROUPES OF STROLLING PLAYERS THE NEW STADIUM WILL BE STATEOFTHEART ENTIRELY DIFFERENT FROM 65YEAROLD CHICAGO STADIUM NEXT DOOR WHERE THE TEAMS NOW PLAY THE BULLS SAID THERE'LL BE WIDER SEATS AISLES AND CONCOURSES UNOBSTRUCTED SIGHTLINES AND THE VERY BEST IN FAN COMFORT AND MODERN TECHNOLOGY I WAS GONNA LOVE IT THEN THE BULLS GOT DOWN TO BRASS TACKS THE TWO SEASON TICKETS I'VE SHARED FOR MORE THAN 20 YEARS WERE BEING RELOCATED FROM THE SECOND ROW OF THE FIRST BALCONY JUST OUTSIDE ONE BASKET AND QUITE NEAR THE ACTION TO AN ENDZONE NOSEBLEED SPOT 10 ROWS FROM THE VERY TOP OF THE VASTLY LARGER NEW STRUCTURE THE PRICE OF THESE TICKETS WILL BE 30 EACH UP FROM THE 25 PER GAME WE'RE NOW PAYING AND THIS WAS THE KILLER THE PEOPLE IN THE NEXT ROW BEHIND US WILL BE PAYING 20 EACH FOR THEIR SEATS INCENSED A COUPLE OF THE GUYS WITH WHOM I SHARE THE TICKETS PHONED THE TEAM WERE WE BEING SINGLED OUT FOR CRUEL AND UNUSUAL PUNISHMENT THEY ASKED OH NO WAS THE REPLY EVERYONE IN OUR SEATING AREA RECEIVED SIMILAR ASSIGNMENTS WAS THERE AN ALTERNATIVE WELL WE COULD GET IN LINE FOR MUCHCOSTLIER CLUB SEATS MORE ABOUT THOSE LATER THEY MIGHT HAVE ASKED IF THIS TRIP WAS NECESSARY BUT THE ANSWER WOULD HAVE BEEN THE VERBAL EQUIVALENT OF A SHRUG TO MAKE AN OMELET ONE HAS TO BREAK SOME EGGS THE 21ST CENTURY ALREADY HAS COME TO PLACES SUCH AS AUBURN HILLS MICH MILWAUKEE SALT LAKE CITY AND PHOENIX IN THE FORM OF RECENTLY BUILT INDOOR SPORTS ARENAS AND THE NEW FOOTBALL STADIUMS THAT PRECEDED THEM ELSEWHERE ITS MAIN ENGINES ARE THE SOCALLED LUXURY BOXES GLASSEDIN DOMICILES OF PRIVILEGE THAT SUBSIDIZED BY THE TAX WRITEOFFS AFFORDED TO BUSINESS ENTERTAINMENT COMMAND PRICES FAR IN EXCESS OF WHAT CAN BE CHARGED FOR ORDINARY TICKETS TO SPORTING EVENTS FANS AND PLAYERS ALIKE AGREE THAT CHICAGO STADIUM WHERE THE BULLS HAVE PERFORMED SINCE 1969 AND THE BLACKHAWKS SINCE IT OPENED IN 1929 IS A GREAT PLACE INTIMATE AND FLAVORFUL ITS PROBLEM IS THAT IT HAS NO LUXURY BOXES THE 175 MILLION UNITED CENTER NAMED FOR THE AIRLINE THAT PUT UP A GOODLY SUM TO AFFIX ITS NAME OVER THE DOOR FOR 20 YEARS WILL HAVE PLENTY OF THEM 216 ON THREE LEVELS TO BE EXACT PRICED FROM 55000 TO 175000 A YEAR ALL THE LUXURY BOXES HAVE BEEN SOLD AND WILL CONTRIBUTE 24 MILLION TO THE BULLS' AND BLACKHAWKS' COFFERS ANNUALLY THEY'RE A REASON THE UNITED CENTER WILL ENCOMPASS ABOUT 1 MILLION SQUARE FEET OF SPACE AGAINST 275000 SQUARE FEET FOR CHICAGO STADIUM THRUSTING THE UPPER SEATS INTO THE CLOUDS ALSO CONTRIBUTING TO THE ROUSTING OF DENIZENS OF THE PRESENT FIRST BALCONY ARE THE ABOVEMENTIONED CLUB SEATS SOME 3000 IN ALL THEY'LL OCCUPY WHAT LOOKS ON THE DIAGRAM TO BE THE FIRST BALCONY IN THE NEW BUILDING THEY'RE GOING FOR 40 PER PLUS AN ANNUAL 1000 PREMIUM FOR THE LATTER SUM THE BUYER WILL GET A CLOSEIN PARKING SPOT IN FACT MOST CLOSEIN PARKING IS GOING TO CLUBSEAT AND LUXURYBOX TENANTS LEAVING OTHER TICKET HOLDERS TO CRUISE THE ALLEYS OF THE CENTER'S RUNDOWN NEIGHBORHOOD FOR PLACES PLUS ATSEAT WAITER SERVICE A CARPETED CONCOURSE AND THE RIGHT TO PURCHASE A MEAL AT A STADIUM CLUB DINING ROOM AND SHOP AT AN EXCLUSIVE SPORTSWEAR AND NOVELTY STORE IT'S YET ANOTHER STEP TOWARD THE GENTRIFICATION OF THE AMERICAN SPORTS ARENA GIVEN THE NEW CENTER'S OWNERSHIP WHICH IS THE SAME AS THAT OF THE BULLS AND BLACKHAWKS NO ONE SHOULD HAVE BEEN SURPRISED AT THE MOVES THE BULLS' CHAIRMAN IS JERRY REINSDORF WHO ALSO HEADS THE BASEBALL CHICAGO WHITE SOX IN THE WAKE OF THAT TEAM'S 1983 DIVISIONAL TITLE HE PAINTED THE RAILINGS AROUND OLD COMISKEY PARK'S 4400 BEST SEATS GOLD YELLOW ACTUALLY JACKED UP THEIR PRICE AND OFFERED THEM ON A SEASONONLY BASIS AT ABOUT THE SAME TIME HE PUT WHITE SOX GAMES EXCLUSIVELY ON CABLE TV FEW IN CHICAGO HAD CABLE THEN AND THE DECISION CAUSED A GENERATION OF LOCAL YOUNGSTERS TO GROW UP AS THE FANS OF THE FREETV CUBS THE BLACKHAWKS ARE HEADED BY YACHTSMAN WILLIAM WIRTZ WHOSE LATE FATHER ARTHUR WAS KNOWN AS THE BARON OF THE BOTTOM LINE IN 1935 ARTHUR WIRTZ TOOK CHICAGO STADIUM WHICH HAD COST ABOUT 7 MILLION TO BUILD OUT OF RECEIVERSHIP FOR 300000 AND WITH PARTNER JAMES D NORRIS WENT ON TO CONTROL MOST OF THE MAJOR INDOOR SPORTS ARENAS IN THE EAST AND MIDWEST THE WIRTZNORRIS INTERNATIONAL BOXING CLUB FORMED TO HELP FILL THOSE VENUES WAS BROKEN UP IN 1957 ON ANTITRUST GROUNDS AMID EVIDENCE OF GANGSTER INFILTRATION THE BLACKHAWKS DISTINGUISHED THEMSELVES IN LATER YEARS BY A TICKETSCALPING SCANDAL IN WHICH THE SCALPERS WERE CHICAGO STADIUM TICKETOFFICE EMPLOYEES AND BY BECOMING ONE OF THE FEW COMPANIES TO BE CONVICTED FOR VIOLATING THE FEDERAL WAGEPRICE CONTROL ACT FOR A 50 HOCKEYPROGRAM PRICE INCREASE IN 1971 IN 1984 A FEDERAL JUDGE ASSESSED DAMAGES OF 17 MILLION AGAINST WIRTZ AND OTHERS IN AN ANTITRUST CASE THAT HINGED ON WIRTZ REFUSING TO LEASE CHICAGO STADIUM TO A GROUP SEEKING TO BUY THE BULLS A DOZEN YEARS EARLIER AND THEN USING THAT LEVERAGE TO TAKE OVER THE TEAM ITSELF REINSDORF AND OTHERS BOUGHT INTO THE BULLS THE FOLLOWING YEAR AN SO AS LENIN PUT IT WHAT IS TO BE DONE MY SEAT PARTNERS AND I HAVEN'T DECIDED WE MIGHT CHUCK IT OR HOLD OUR NOSES ANTE UP AND GIVE THE NEW PLACE A TRY FOR A SEASON WHO KNOWS MAYBE MICHAEL JORDAN WILL COME BACK AND MAYBE WHEN NOBODY'S LOOKING WE CAN SNEAK DOWN AND OGLE SOME OF THAT EXCLUSIVE SPORTSWEAR ON THE CLUB LEVEL SEE RELATED LETTER LETTERS TO THE EDITOR BOXSEAT DEDUCTIONS WSJ MARCH 29 1994 9403040142 YY94 MM03 9403290023 940329 LETTERS TO THE EDITOR SOLOMON WISELY MADE A SPLIT DECISION IN REGARD TO THE FOLLOWING STATEMENT BY PATRICIA MCGUIRE PRESIDENT OF TRINITY COLLEGE PROTECTING MALE ONLY' ACCESS TO POWER LETTERS MARCH 9 EVER SINCE KING SOLOMON DANGLED THAT SWORD OVER THE BABY'S HEAD MEN HAVE USED CRUEL EMOTIONAL DEVICES TO FORCE WOMEN TO MAKE UNPALATABLE CHOICES THREATEN TO KILL THEIR BABIES AND THEY WILL CAVE IN ACTUALLY KING SOLOMON WAS PRESENTED WITH A DISPUTE HE HAD BY LAW AND CUSTOM TO RESOLVE THE DISPUTE WAS BROUGHT BEFORE HIM BY ONE OR BOTH OF THE WOMEN BOTH CLAIMED TO BE THE MOTHER OF A BABY TO RESOLVE THE DISPUTE HE STATED THAT THE BABY OUGHT TO BE CUT IN TWO SO EACH WOMAN WOULD HAVE AN EQUAL PORTION OF THE CHILD IMMEDIATELY ONE OF THE WOMEN SPOKE UP AND SURRENDERED HER CLAIM THAT THE CHILD MIGHT LIVE SOLOMON RATHER WISELY I THINK CONCLUDED THAT THIS WOMAN ACTED AS A MOTHER WOULD PUNISHED THE LIAR AND DELIVERED THE HEALTHY CHILD BACK TO ITS MOTHER SOLOMON'S JUSTICE WAS SWIFT AND TRUE IT IS LIKELY THAT A WISE OLD QUEEN WOULD HAVE ACTED IN THE SAME FASHION AS THE WISE OLD KING SOLOMON 9403290022 940329 PEPPERAND SALT YOU DON'T WANT TO BE LATE TO FIVE PARTS HYPE I INTERFACE 9403290021 940329 BUSINESS BRIEF SANTA FE ENERGY RESOURCES INC SEC FILING SET TO SELL SHARES DEBT IN BROAD RESTRUCTURING SANTA FE ENERGY RESOURCES INC HOUSTON SAID IT PUT THE FINANCIAL PART OF ITS BROAD RESTRUCTURING PLAN IN PLACE FILING WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF 100 MILLION OF SENIOR SUBORDINATED DEBENTURES AND 107 MILLION DIVIDENDENHANCED CONVERTIBLE SHARES THE COMPANY WHICH WENT PUBLIC IN 1990 HAS BEEN STRUGGLING WITH LOW EARNINGS FOR SEVERAL QUARTERS IN THE FOURTH QUARTER IT HAD A NET LOSS OF 831 MILLION OR 95 CENTS A SHARE ON REVENUE OF 1026 MILLION THE LOSS INCLUDED A 993 MILLION WRITEOFF OF OILANDGAS PROPERTIES AND A 386 MILLION RESTRUCTURING CHARGE BOTH PRETAX SANTA FE IN OCTOBER SAID IT WOULD SELL NONCORE ASSETS AND SPEED UP DEVELOPMENT IN ITS THREE CORE DOMESTIC AREAS IT ALSO ELIMINATED ITS QUARTERLY DIVIDEND OF FOUR CENTS A COMMON SHARE SANTA FE SAID THE SENIOR SUBORDINATED DEBENTURES WILL BE DUE IN 2004 THE CONVERTIBLE SHARES WILL PAY A QUARTERLY DIVIDEND PRIOR TO CONVERSION OR REDEMPTION BE CONVERTIBLE INTO COMMON STOCK AT THE HOLDER'S OPTION AND WILL CONVERT AUTOMATICALLY ABOUT FOUR YEARS AFTER ISSUANCE THE COMPANY CAN REDEEM THE SHARES A YEAR BEFORE THE AUTOMATIC CONVERSION AT A CALL PRICE PAYABLE IN COMMON SHARES SALOMON BROTHERS INC IS ONE OF THE LEAD UNDERWRITERS OF THE DEBENTURE OFFERING 9403290020 940329 PRICING HEALTH CARE IT'S TAXATION STUPID BY GRACEMARIE ARNETT WITH THE CLINTON PLAN ON THE ROPES THE TIME HAS COME TO SHIFT THE HEALTH CARE DEBATE TO EXPOSE THE UNDERLYING CAUSE OF MUCH OF WHAT AILS THE HEALTH CARE SYSTEM THE TAX TREATMENT OF EMPLOYERPROVIDED HEALTH INSURANCE THE TAX POLICY THAT TIES HEALTH INSURANCE TO EMPLOYMENT CAN BE TRACED TO WAGEANDPRICE CONTROLS DURING WORLD WAR II EMPLOYERS COMPETING FOR SCARCE LABOR OFFERED HEALTH COVERAGE AS A SUBSTITUTE FOR PAY TO BOOST COMPENSATION PACKAGES WITHOUT RUNNING AFOUL OF WARTIME WAGE CONTROLS THE IRS LATER ENDORSED THIS PRACTICE RULING THAT EMPLOYERPROVIDED HEALTH BENEFITS UNLIKE VIRTUALLY ALL OTHER FORMS OF COMPENSATION COULD BE EXCLUDED FROM THE TAXABLE INCOME OF EMPLOYEES THE IRS DECISION HAS CASCADED THROUGH THE US HEALTH CARE SYSTEM FOR NEARLY HALF A CENTURY TO DICTATE ITS STRUCTURE AND CREATE MANY OF ITS PROBLEMS DEMONSTRATING THE AWESOME POWER OF TAX INCENTIVES THE BENEFITS THAT EMPLOYEES RECEIVE AS HEALTH INSURANCE LEAD MANY RECIPIENTS TO BELIEVE ERRONEOUSLY THAT THE MONEY SPENT ON HEALTH INSURANCE PREMIUMS IS THEIR COMPANY'S AND NOT THEIR OWN MOST ALSO BELIEVE HEALTH INSURERS FINANCE MOST OF PATIENTS' MEDICAL BILLS THESE ILLUSIONS OBSCURE THE TRUTH ABOUT THE REAL PRICE EMPLOYEES PAY IN LOST WAGES INFLATED PRICES AND INSECURITY TAKE THE EXAMPLE OF A PHOTOGRAPHER WHOSE SALARY IS 30000 HER COMPANY ALSO OFFERS HEALTH INSURANCE BUT THE 4000 COST OF THE POLICY COVERING HER FAMILY IS EXCLUDED FROM HER TAXABLE INCOME BECAUSE SHE HAS BEEN ENCOURAGED TO BELIEVE THAT HER PREMIUMS ARE PAID BY HER EMPLOYER AND ARE THEREFORE FREE SHE AND HER COLLEAGUES HAVE NEGOTIATED A RICH POLICY WITH LOW DEDUCTIBLES BUT THE BIGGER THE CHECKS HER EMPLOYER WRITES FOR HEALTH INSURANCE THE SMALLER HER WAGE INCREASES HAVE BEEN SHE MAY NOT SEE THE CONNECTION BUT SHE SEES THE RESULT SHE HASN'T HAD A PAY INCREASE IN THREE YEARS BUT SHE STAYS AT HER JOB BECAUSE SHE HAS GOOD HEALTH BENEFITS THE FASTEST GROWING ELEMENT OF COMPENSATION IS BENEFITS MAKING UP 39 OF TOTAL EMPLOYEE COMPENSATION IN 1992 HEALTH ECONOMISTS HAVE BEEN WRITING ABOUT THE DISTORTING AND COSTLY EFFECTS OF THE TAX TREATMENT OF HEALTH BENEFITS FOR MORE THAN 20 YEARS BUT POLITICIANS HAVE BEEN RELUCTANT EVEN TO DISCUSS IT MOST INCLUDING THE PRESIDENT BUILD ON THE CURRENT JOBBASED SYSTEM AND WOULD LOCK ITS FLAWS INTO LAW THE PRIMARY PROBLEM IS THAT USERS ARE SEPARATED FROM COST INSURED PATIENTS BUY DOCTOR AND HOSPITAL SERVICES AT A DEEP DISCOUNT USUALLY PAYING LESS THAN 20 CENTS ON THE DOLLAR OUT OF POCKET GIVING THEM AN INCENTIVE TO OVERUSE MEDICAL SERVICES THEY HAVE LITTLE REASON TO FORCE PROVIDERS TO COMPETE PRICES INEVITABLY RISE THIS DRIVES UP THE COST OF INSURANCE FEWER COMPANIES AND INDIVIDUALS CAN AFFORD COVERAGE AND THE NUMBER OF UNINSURED RISES UP TO AN ESTIMATED 385 MILLION AMERICANS AT LAST REPORT THE CURRENT SYSTEM ALSO BREEDS INSECURITY CONSUMERS CAN GET A TAX BREAK ONLY IF THEIR EMPLOYERS BUY THEIR HEALTH INSURANCE FOR THEM THEY DON'T OWN THEIR POLICIES THEMSELVES AND THEY ARE AT THE MERCY OF DECISIONS BY EMPLOYERS AND INSURANCE COMPANIES ABOUT PREMIUM COSTS AND BENEFIT STRUCTURES WORSE THEY MAY LOSE THEIR HEALTH INSURANCE OR BE FORCED TO GO FOR MONTHS WITHOUT COVERAGE IF THEY LOSE OR CHANGE JOBS THE RICH TAX SUBSIDY FOR EMPLOYERPROVIDED HEALTH INSURANCE IS HIGHLY REGRESSIVE THOSE WHO PURCHASE THEIR OWN INSURANCE RECEIVE NO BENEFIT FROM THE EXCLUSION AND THOSE WHO HAVE EMPLOYERPROVIDED INSURANCE RECEIVE LARGER TAX BENEFITS THE HIGHER THEIR INCOME REFORM COULD REDIRECT THE TAX BENEFITS MORE FAIRLY BUT IT MEANS DETACHING HEALTH INSURANCE FROM EMPLOYMENT IN A MORE RATIONAL SYSTEM INDIVIDUALS AND FAMILIES WOULD BE ABLE TO DIRECTLY CLAIM THE TAX BENEFIT FOR PURCHASING HEALTH INSURANCE OR HEALTH CARE THIS PROSPECT APPEARS UNSETTLING TO SOME WORKERS AND POLITICIANS BUT CHANGING THE TAX CODE WOULD ADD CHOICES NOT ELIMINATE THEM REFORMING THE TAX TREATMENT OF INSURANCE WOULD NOT CHANGE EMPLOYERS' INCENTIVES TO CONTINUE PROVIDING INSURANCE HOWEVER IT LIKELY WILL CAUSE WORKERS TO ASK FOR THIS PART OF THEIR COMPENSATION TO BE INCLUDED IN THEIR TAKEHOME PAY THE PHOTOGRAPHER STILL COULD GET HER HEALTH COVERAGE AT WORK BUT IF SHE DOESN'T LIKE THE HMO OR THE MANAGEDCARE PLAN HER EMPLOYER OFFERS SHE WOULD BE ABLE TO SHOP FOR ANOTHER PLAN THAT BETTER SUITS HER NEEDS SHE MIGHT JOIN A GROUP ORGANIZED BY HER CHURCH PROFESSIONAL ORGANIZATION UNION OR EMPLOYEE ASSOCIATION MOST IMPORTANT SHE WOULD OWN HER OWN HEALTH INSURANCE POLICY JUST AS SHE OWNS HER AUTO AND LIFE INSURANCE POLICIES AND WOULDN'T LOSE IT BECAUSE SHE CHANGED JOBS TAX RELIEF COULD COME AS TAX CREDITS OR VOUCHERS TO BE USED TO OFFSET THE COSTS OF CATASTROPHIC HEALTH INSURANCE OUTOFPOCKET EXPENSES OR THE OPENING OF MEDICAL SAVINGS ACCOUNTS DEPENDING ON PERSONAL CHOICE AND INDIVIDUAL FAMILY CIRCUMSTANCES THE IMPACT ON THE MARKET WOULD BE PROFOUND MILLIONS OF CONSUMERS SHOPPING FOR INDIVIDUAL OR NEWLY FORMED GROUP POLICIES WOULD SUDDENLY WAKE UP TO THE REAL COST OF HEALTH INSURANCE IN SHOPPING FOR THEIR OWN COVERAGE AND MAKING MEDICAL PURCHASES THEY WOULD REWARD THE EFFICIENT AND COSTEFFECTIVE MEDICAL PROVIDERS AND PUNISH THE INEFFICIENT AND OVERPRICED PROVIDERS EVERY AMERICAN SHOULD BE ABLE TO OBTAIN NEEDED MEDICAL CARE AND REFORMING THE FINANCING MECHANISM FOR HEALTH INSURANCE IS THE MOST REALISTIC AND EFFICIENT WAY TO REACH THAT GOAL TAX REFORM WOULD ELIMINATE THE PRIMARILY MIDDLECLASS FEAR THAT LOSING A JOB MEANS LOSING HEALTH INSURANCE THE POOR COULD OBTAIN PRIVATE HEALTH INSURANCE WITH EXPLICIT FEDERAL SUBSIDIES A WIDER RANGE OF OPTIONS FOR HEALTH INSURANCE WOULD BE AVAILABLE IN A MARKET CATERING TO INDIVIDUAL RATHER THAN CORPORATE CHOICE HEALTH INSURANCE WOULD MORE LIKELY BE PURCHASED AS TRUE INSURANCE TO PROTECT AGAINST CATASTROPHIC LOSS REDUCING PAPERWORK TO PROCESS HUNDREDS OF MILLIONS OF SMALL BILLS INSURANCE WOULD BE MORE AFFORDABLE AND FLEXIBLE AND MANY MORE PEOPLE COULD AFFORD COVERAGE THESE CHANGES WOULD INCREASE THE AFFORDABILITY OF HEALTH CARE WITHOUT TRIGGERING THE JOB LOSSES AND WAGE REDUCTIONS THAT WOULD RESULT FROM EMPLOYER MANDATES CRITICS ARGUE THAT HEALTH CARE DECISIONS ARE TOO COMPLEX FOR THE AVERAGE CONSUMER BUT AMERICANS SOMEHOW MANAGE TO BUY HOUSES AUTOMOBILES COMPUTERS LEGAL SERVICES AND OTHER FORMS OF INSURANCE BY EDUCATING THEMSELVES ABOUT THEIR OPTIONS MORE THAN 90 OF MEDICAL DECISIONS ARE MADE IN A NONCRISIS ENVIRONMENT AND PEOPLE HAVE TIME TO GET ANSWERS AND MAKE CHOICES EACH OF THE THREE MAIN MARKETORIENTED THINK TANKS IN WASHINGTON IS PURSUING ITS OWN POLITICALLY BOLD BUT ECONOMICALLY SOUND HEALTH CARE IDEAS WHEN ATTENTION IS PAID TO THEM DISCUSSION HAS FOCUSED MORE ON THEIR DIFFERENCES THAN THEIR SIMILARITIES THUS FUELING CONFUSION AMONG CONSERVATIVES ABOUT HOW TO CRAFT A VIABLE MARKETBASED ALTERNATIVE TO THE NOWTROUBLED CLINTON PLAN BUT AFTER A GROUP OF CONSERVATIVE SENATORS INCLUDING PETE DOMENICI OF NEW MEXICO AND ROBERT BENNETT OF UTAH CALLED UPON THE THINK TANKS TO FOCUS ON WHAT THEY HELD IN COMMON HEALTH POLICY EXPERTS ROBERT HELMS OF THE AMERICAN ENTERPRISE INSTITUTE ROBERT MOFFIT OF THE HERITAGE FOUNDATION AND MICHAEL TANNER OF THE CATO INSTITUTE TOOK UP THE CHALLENGE THIS CONSENSUS GROUP QUICKLY DETERMINED THAT TAX REFORM WAS THE CENTER OF EACH OF THEIR MARKETORIENTED APPROACHES AROUND THIS CORE IDEA THEY HAVE DEVELOPED A BROADER CONCEPTUAL APPROACH TO HEALTH CARE REFORM MOST AMERICANS AGREE THAT GOVERNMENT CONTROL IS NOT THE ANSWER THE MORE GOVERNMENT IS INVOLVED IN HEALTH CARE THE MORE IT WILL INCREASE COSTS AND ADD REGULATION WHILE REDUCING QUALITY AND CHOICE THE CLINTON PLAN AND MOST OF THE LIBERAL ALTERNATIVES INCREASE THE POWER OF THE STATE WHILE THE CONSENSUS GROUP'S APPROACH INCREASES THE POWER OF THE INDIVIDUAL BY FORGING THIS CONSENSUS THE THREE THINK TANKS HELP CLARIFY THE POLICY CHOICES TO SHOW THAT TAX REFORM IS AT THE HEART OF HEALTH CARE REFORM ONCE OTHERS JOIN THIS PARADE THERE CAN BE A REAL DEBATE BETWEEN THOSE WHO ADVOCATE A GOVERNMENTRUN SYSTEM AND THOSE WHO FAVOR A SYSTEM THAT ALLOWS THE INDIVIDUAL TO UNLEASH THE FULL FORCE OF A COMPETITIVE MARKETPLACE MS ARNETT OF ARNETT & CO HEALTH POLICY CONSULTING IN WASHINGTON DC COORDINATED THE WORK OF THE CONSENSUS GROUP 9403290019 940329 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 1/4 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 9/16 HIGH 3 7/16 LOW 3 3/8 NEAR CLOSING BID 3 1/2 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 1/4 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 360 30 TO 44 DAYS 363 45 TO 59 DAYS 367 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 387 90 DAYS CERTIFICATES OF DEPOSIT 298 ONE MONTH 304 TWO MONTHS 328 THREE MONTHS 355 SIX MONTHS 390 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 362 ONE MONTH 380 THREE MONTHS 407 SIX MONTHS BANKERS ACCEPTANCES 357 30 DAYS 362 60 DAYS 373 90 DAYS 385 120 DAYS 395 150 DAYS 399 180 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 3/4 3 5/8 TWO MONTHS 3 7/8 3 1/2 THREE MONTHS 4 3 7/8 FOUR MONTHS 4 1/8 4 FIVE MONTHS 4 3/16 4 1/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 11/16 ONE MONTH 3 7/8 THREE MONTHS 4 3/16 SIX MONTHS 4 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 625 GERMANY 577 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 796 60 DAYS 803 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 791 60 DAYS 798 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 590 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 283 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403290018 940329 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY MARCH 16 1994 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9403290017 940329 WOMEN IN MANAGEMENT A WAITING GAME CORPORATE RANKINGS THE FIRST AND THE LAST WELLS FARGO BANKS ON LOTS OF WOMEN THE NAME WELLS FARGO MAY NOT CONJURE UP IMAGES OF MODERN WORKING WOMEN BUT THIS BANK IS ONCE AGAIN SHOWING ITS PIONEER SPIRIT IT HAS A GREATER PERCENTAGE OF WOMEN IN MANAGEMENT THAN ANY OTHER COMPANY IN THE JOURNAL'S LIST OF 200 IN 1992 IT HAD 661 OF COURSE WELLS FARGO & CO WHICH OWNED THE PONY EXPRESS HAS CERTAIN ADVANTAGES OF NINE INDUSTRIES ANALYZED FINANCE HAS THE HIGHEST PERCENTAGE OF FEMALE MANAGERS 414 THE BANKING COMPANY IS IN SAN FRANCISCO AND FIRMS LOCATED IN THE WEST AS IN THE NORTHEAST HAVE HIGHER PERCENTAGES THAN THOSE SITUATED ELSEWHERE 312 FEMALE MANAGERS COMPARED WITH 278 IN THE MIDWEST AND 276 IN THE SOUTH BUT WELLS FARGO HAS A FAR GREATER PERCENTAGE OF WOMEN IN MANAGEMENT THAN MANY OTHERS BANKS IN 1992 BANC ONE CORP HAD 485 CHASE MANHATTAN CORP 425 NORWEST CORP 417 AND BANKAMERICA CORP 612 WELLS FARGO ASCRIBES ITS SCORE PARTLY TO ITS NONTRADITIONAL PROMOTION PATHS NOT JUST OUT OF THE LENDING AREA BUT ALSO OUT OF OPERATIONS MANAGEMENT SYSTEMS MANAGEMENT AND MARKETING SAYS KIM KELLOGG A COMPANY SPOKESWOMAN WITH SO MANY MERGERS AND ACQUISITIONS IN THE 1980S WOMEN WERE ABLE TO PROVE THEY CAN HANDLE BIG PROJECTS SHE SAYS THE COMPANY'S DECENTRALIZED NONHIERARCHICAL STRUCTURE ALSO PROVIDES AN ATMOSPHERE IN WHICH WOMEN SEEM TO THRIVE AT THE LOFTIEST RANKS SENIOR AND EXECUTIVE VICE PRESIDENT THE PERCENTAGE OF WOMEN MANAGERS ISN'T AS EXTRAORDINARY BUT AT 18 IT IS HIGHER THAN MANY COMPANIES SEVEN OF THE 38 EXECUTIVE VICE PRESIDENTS ARE FEMALES AS ARE 19 OF THE 108 SENIOR VICE PRESIDENTS MORE THAN HALF HOLD CORE BUSINESS JOBS BECAUSE SO MANY WOMEN ARE MANAGERS DIVERSITY IS ALMOST NOT A TOPIC OF DISCUSSION NOW SAYS PATRICIA CALLAHAN EXECUTIVE VICE PRESIDENT IN CHARGE OF PERSONNEL IT'S A TOPIC OF PLEASURE AND HOW IS LIFE FOR THE MEN WHO FIND THEMSELVES IN THIS CORPORATE PLEASURE ZONE NOT TERRIBLE AT ALL BOB BYRNE A 39YEAROLD SENIOR VICE PRESIDENT FOR BUSINESS SERVICES IS OFTEN THE ONLY MAN AT MEETINGS HAVING WORKED FOR WOMEN SEVEN OF HIS 10 YEARS AT WELLS FARGO HE SAYS HE RARELY THINKS ABOUT THE GENDER OF HIS BOSS THE ONLY TIME HE ADMITS TO PREFERRING THE COMPANY OF MEN IS WHEN THEY ARE INDULGING IN SMALL TALK ABOUT SPORTS HE SAYS HE DOESN'T OFTEN LISTEN TO WOMEN TALKING AMONG THEMSELVES BUT WHEN HE DOES THEY'RE TALKING ABOUT CLOTHES SEE RELATED ARTICLES THE WAITING GAME WOMEN MAKE STRIDES BUT MEN STAY FIRMLY IN TOP COMPANY JOBS FEMALE MANAGEMENT GAINS ARE IMPEDED BY CULTURE STILL DOMINATED BY MALES FROM FORD MOTOR TO SARA LEE AND STEELY COLD GREETS LADIES' AT NUCOR WSJ MARCH 29 1994 9403290016 940329 FINANCING BUSINESS ARKLA INC ARKLA INC HOUSTON SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 13 MILLION COMMON SHARES ARKLA SHARES ROSE 125 CENTS TO 725 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE NATURALGAS COMPANY SAID IT WOULD USE PROCEEDS TO RETIRE LONGTERM DEBT LEAD MANAGER FOR THE OFFERING IN THE US IS MERRILL LYNCH & CO THE OFFERING IS EXPECTED TO OCCUR IN THE LAST WEEK OF APRIL OR THE FIRST WEEK OF MAY THE REGISTRATION STATEMENT ALSO COVERS AN OVERALLOTMENT OPTION OF 195 MILLION SHARES 9403290015 940329 BUSINESS BRIEF GENEVA STEEL CO FISCAL 2NDPERIOD LOSS SEEN WIDENING ON SPECIAL CHARGE GENEVA STEEL CO CITING A SPECIAL CHARGE AND PRODUCTION INEFFICIENCIES SAID IT EXPECTS TO POST A NET LOSS OF 14 MILLION TO 15 MILLION FOR ITS FISCAL SECOND QUARTER ENDING THURSDAY IN THE YEAREARLIER PERIOD THE VINEYARD UTAH COMPANY HAD A LOSS OF 46 MILLION OR 32 CENTS A SHARE ON SALES OF 1155 MILLION THE STEELMAKER SAID THE LATEST QUARTER INCLUDES AN EXTRAORDINARY CHARGE OF 10 MILLION MAINLY FROM A PREPAYMENT PREMIUM RELATED TO A RECENT SENIORNOTE OFFERING OF 190 MILLION THE COMPANY EXPECTS AN OPERATING LOSS AS A RESULT OF PRODUCTION INEFFICIENCIES FROM CONSTRUCTION OF MODERNIZATION PROJECTS INCLUDING A CONTINUOUS CASTER WHICH MAKES STEEL SLABS FROM LIQUID STEEL GENEVA ALSO CITED HIGHER IRONMAKING COSTS BECAUSE OF RECONDITIONING WORK AT ITS BLAST FURNACE ALTHOUGH EARNINGS IN THE SHORT TERM ARE BEING NEGATIVELY AFFECTED WE EXPECT THE CONTINUOUS CASTER AND OTHER MODERNIZATION PROJECTS TO SIGNIFICANTLY INCREASE THROUGHPUT REDUCE COSTS AND IMPROVE QUALITY AS THEY ARE BROUGHT ON LINE THE COMPANY SAID 9403290014 940329 INTERNATIONAL BALLADUR DROPS YOUTH JOBS BILL AFTER WIDE PROTESTS BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS FRENCH PRIME MINISTER EDOUARD BALLADUR DROPPED HIS CONTROVERSIAL YOUTH EMPLOYMENT BILL YESTERDAY ONCE AGAIN BACKING DOWN IN THE FACE OF STREET PROTESTS AFTER YIELDING SUCCESSIVELY IN RECENT MONTHS TO THE SEPARATE DEMANDS OF ANGRY AIRLINE WORKERS FOLLOWED BY THE DEMANDS OF TEACHERS AND PARENTS AND THEN FISHERMEN MR BALLADUR HAS THIS TIME GIVEN WAY TO STUDENTS STUDENT AND LABOR UNIONS TOOK TO THE STREETS TO PROTEST THE DECREE BECAUSE IT WOULD HAVE ALLOWED EMPLOYERS TO HIRE YOUTHS AT LESS THAN THE MINIMUM WAGE IN EXCHANGE FOR A CERTAIN AMOUNT OF JOB TRAINING FOR THE MOMENT AT LEAST THE UNIONS' REFUSAL TO GRANT ANY LEEWAY IN LOOSENING FRANCE'S RIGID LABOR LAWS LEAVES MR BALLADUR WITH FEW WEAPONS TO ATTACK UNEMPLOYMENT WHICH STANDS AT 122 AND WHICH THE GOVERNMENT HAS IDENTIFIED AS ITS MAIN PRIORITY MR BALLADUR'S AIDES INSISTED YESTERDAY THAT THE PRIME MINISTER'S DECISION TO DROP THE DECREE WASN'T A RETREAT MR BALLADUR IS NOT GIVING UP IF THE DECREE IS NOT ACCEPTED THEN HE MUST FIND ANOTHER SOLUTION SAID ONE OF HIS ADVISERS MR BALLADUR SAID IN A STATEMENT YESTERDAY THAT THE DECREE KNOWN AS THE CONTRAT D'INSERTION PROFESSIONELLE OR CIP WILL BE SUSPENDED WHILE A NEW GOVERNMENT TASK FORCE INCLUDING EMPLOYERS WORKERS AND STUDENTS LOOKS FOR AN ALTERNATIVE AS SMALL CONSOLATION FOR ABANDONING THE CIP AFTER REPEATEDLY VOWING THAT HE WOULDN'T RETREAT MR BALLADUR SAW ONE OF HIS LESS CONTROVERSIAL IDEAS COME TO FRUITION THIS WAS TELEEMPLOI A TEMPORARY TELEVISION CHANNEL DEVOTED TO EMPLOYMENT ISSUES COMMISSIONED BY THE PRIME MINISTER LAST NOVEMBER THE STATEFINANCED CHANNEL HAS A 65 MILLION FRANCS 114 MILLION BUDGET FOR ITS THREE WEEKS ON THE AIR THE GOVERNMENT'S DECISION TO ABANDON THE CIP IS PRIMARILY DUE TO GROWING NERVOUSNESS AMONG FRENCH POLITICAL LEADERS THAT THE NATION'S EXASPERATION OVER RECORD UNEMPLOYMENT AND SLUGGISH ECONOMIC GROWTH COULD CAUSE THE STUDENT DEMONSTRATIONS TO SPILL OUT OF CONTROL EVEN THE FRENCH NATIONAL EMPLOYERS' UNION CNPF FAILED TO BACK MR BALLADUR IN DEFENDING THE CIP 9403290013 940329 BUILDING JOBS INCREASE 4 SURVEY SHOWS BY JACQUELINE SIMMONS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IMPROVEMENTS IN NONRESIDENTIAL BUILDING PUBLIC WORKS AND UTILITIES CONTRIBUTED TO A 4 RISE IN CONSTRUCTION CONTRACTS LAST MONTH OFFSETTING DECLINES IN THE HOUSING SECTOR AN FW DODGE SURVEY REPORTED MARKING ITS FIRST INCREASE SINCE OCTOBER THE DODGE INDEX OF CONSTRUCTION CONTRACTS GREW TO 107 IN FEBRUARY FROM JANUARY'S SEASONALLY ADJUSTED 103 THE INDEX MEASURES THE SEASONALLY ADJUSTED RATE OF TOTAL CONSTRUCTION USING A 1987 AVERAGE MONTHLY RATE AS A BASE OF 100 THE FEBRUARY TOTAL WAS 1894 BILLION FOR THE FIRST TWO MONTHS OF 1994 NEWCONSTRUCTION CONTRACTS ROSE 5 TO 3612 BILLION ON AN UNADJUSTED BASIS FROM THE YEAREARLIER PERIOD FEBRUARY'S REBOUND WAS A REASSURING SIGN THAT UPWARD POTENTIAL STILL EXISTS FOR THIS CONSTRUCTION RECOVERY SAID ROBERT A MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS AND CHIEF ECONOMIST FOR FW DODGE THE FORECASTING UNIT OF MCGRAWHILL INC MEETING THAT POTENTIAL IN 1994 THE THIRD YEAR OF RECOVERY WILL REQUIRE A GREATER CONTRIBUTION FROM CATEGORIES BESIDES HOUSING JUST THE PATTERN WITNESSED IN FEBRUARY NONBUILDING CONSTRUCTION IN FEBRUARY JUMPED 30 LED BY SUBSTANTIAL GAINS IN PUBLIC WORKS AND UTILITIES PUBLICWORKS CONSTRUCTION SUCH AS HIGHWAYS AND BRIDGES REBOUNDED FROM JANUARY'S WEAK LEVELS SURGING 17 HIGHWAY AND BRIDGE CONSTRUCTION MATCHED LEVELS PREVIOUSLY SEEN THE YEAR BEFORE AS IT BENEFITED FROM INCREASED FUNDING THROUGH TRANSPORTATION LEGISLATION UTILITY BUILDING WAS BOOSTED BY THE CONSTRUCTION OF SEVERAL LARGE POWER PLANTS INCLUDING A 275 MILLION PROJECT IN VIRGINIA AND A 250 MILLION PROJECT IN CALIFORNIA NONRESIDENTIAL BUILDING WAS UP 5 THANKS TO A PICKUP IN INSTITUTIONAL BUILDING SUCH AS HEALTHCARE FACILITIES AND SCHOOLS WHICH GAINED MOMENTUM FROM JANUARY'S LEVELS PUBLIC ADMINISTRATION AND DETENTION FACILITIES WHICH POSTED THEIR BEST RESULTS IN MORE THAN A YEAR ALSO AIDED THE SECTOR THE REPORT ADDED THE INSTITUTIONAL SECTOR LOST MOMENTUM IN 1992 AND 1993 SO ITS REEMERGENCE AS A SOURCE OF EXPANSION IS A WELCOME EVENT PARTICULARLY SINCE IT NOW COMPRISES A MUCH LARGER SHARE OF THE NONRESIDENTIAL TOTAL THAN IN THE PREVIOUS DECADE MR MURRAY SAID RESIDENTIAL BUILDING CONTINUED TO SLIDE LAST MONTH FALLING 6 AS SINGLEFAMILY HOUSING SLIPPED FOR THE SECOND CONSECUTIVE MONTH EVEN WITH THE SLOW START TO 1994 THE NEARTERM PROSPECTS FOR SINGLEFAMILY HOUSING REMAIN GOOD AS MORE HOME BUYERS ARE SPURRED TO ACTION BEFORE FURTHER MORTGAGE RATE INCREASE TAKE PLACE MR MURRAY SAID MULTIFAMILY HOUSING FELL BACK FROM JANUARY'S UPTURN AN INDICATION THAT ITS PERFORMANCE WILL BE SPORADIC IN THE FUTURE THE REPORT ADDED REGIONALLY THE WEST LED THE COUNTRY WITH A 23 INCREASE IN TOTAL CONSTRUCTION FOR THE FIRST TWO MONTHS OF THE YEAR FOLLOWED BY A 15 IMPROVEMENT IN THE MIDWEST THE SOUTH CENTRAL AREA SHOWED A 6 IMPROVEMENT WHILE THE SOUTH ATLANTIC REGION GAINED 4 THE NORTHEAST HIT BY A HARSH WINTER DECLINED 29 9403290012 940329 TRACKING TRAVEL BY BRIDGET O'BRIAN AIRLINES GRAPPLE WITH CONFLICTING TASTES AND DIETERY REQUIREMENTS OF PASSENGERS UAL'S UNITED AIRLINES HAS NEARLY A DOZEN SPECIAL MEALS INCLUDING LOW FAT LOW SODIUM LOW CHOLESTEROL HIGH FIBER AND VEGETARIAN THERE ARE ALSO KOSHER MUSLIM AND HINDU MEALS THE FAVORITE IS MCDONALD'S FRIENDLY SKIES MEAL CONSISTING OF A CHEESEBURGER APPLE SAUCE AND COOKIES OVER HALF A MILLION SERVED SAYS A UNITED SPOKESMAN THE NEW OFFERINGS INCLUDED SALMON ON LENTILS AND ASIAN SCALLOPS ON COUS COUS IN RESPONSE TO COMMENTS DELTA RETOOLED ITS MENU AGAIN DITCHING THE LENTILS COOKING UP A NEW COUS COUS AND CHANGING A RICE SALAD TO A PASTA SALAD NORTHWEST AIRLINES JUST BEGAN SERVING A LA CARTE MEALS ON DOMESTIC DINNER FLIGHTS LETTING PASSENGERS SELECT FOOD FROM A CART ROLLED DOWN THE AISLE THE NEWEST TREND FOOD HEIGHT ON THE THEORY THAT FLAT SERVINGS LOOK TOO MUCH LIKE FROZEN DINNERS OR WELL AIRLINE FOOD MENU PLANNERS ARE SHIFTING TOWARD SOMETHING MORE THREEDIMENSIONAL A UNITED SPOKESMAN SAYS INSTEAD OF PUTTING THE BROCCOLI SPEARS SIDEWAYS IF THERE'S A WAY TO HAVE THEM STICK UP WE DO THAT AIRPORT PRICES ARE COMING DOWN OUT OF THE STRATOSPHERE THE SUCCESS OF EVERYDAY OR STREET PRICING AT RETAIL AND FOOD CONCESSIONS AT PITTSBURGH AND SAN FRANCISCO AIRPORTS IS PRESSURING OTHER FACILITIES TO FOLLOW SUIT PAT BOYLE DEPUTY DIRECTOR OF ALLEGHENY COUNTY PA DEPARTMENT OF AVIATION SAYS THAT AT A RECENT MARKETING SEMINAR FOR AIRPORT OPERATORS AN EXECUTIVE FROM A HUB AIRPORT COMPLAINED YOU'RE FORCING EVERYBODY ELSE TO DO WHAT YOU'RE DOING ATLANTA'S HARTSFIELD INTERNATIONAL AIRPORT WHERE A FIVESTICK PACKAGE OF WRIGLEY'S SPEARMINT GUM COSTS 91 CENTS NEARLY TWICE ITS STREET PRICE JUST PUBLISHED BID SPECIFICATIONS FOR ITS NEW INTERNATIONAL TERMINAL THAT CALLS FOR LOWER PRICES THE METROPOLITAN WASHINGTON AIRPORTS AUTHORITY OPERATOR OF DULLES AND NATIONAL AIRPORTS IS LOOKING TO DO THE SAME THE CHANGE IS THE RESULT OF CONSUMERS' PUSH FOR GREATER VALUE AND THE INCREASING PREVALENCE OF SAVVY TRAVELERS WHILE AIRPORTS ARE SEEKING OUT BRANDNAME FOOD AND BEVERAGE CONCESSIONS TO BOOST REVENUE TRAVELERS KNOW WHAT A BIG MAC COSTS AT HOME AND WON'T PAY EXTRA JUST BECAUSE THEY'RE ON THE ROAD AIRPORTS TODAY REALIZE THAT THEY'RE IN A MORE COMPETITIVE ENVIRONMENT THAN 10 YEARS AGO SAYS VICTORIA PANNELL A SPOKESWOMAN FOR AIRPORTS COUNCIL INTERNATIONALNORTH AMERICA AN INDUSTRY GROUP FOR AIRPORT OPERATORS BALTIMORE/WASHINGTON INTERNATIONAL AIRPORT COMPARES PRICES AT ITS PIZZA HUT AND ROY ROGERS FRANCHISES TO THOSE AT NEARBY MALLS CHICAGO'S O'HARE AIRPORT HAS PUT LOWER PRICES IN EFFECT AT ITS INTERNATIONAL TERMINAL THE MODEL IS STILL PITTSBURGH WHERE ALLEGHENY COUNTY CONTROLLER FRANK LUCCHINO AUDITS THE AIRPORT ANNUALLY TO ENSURE THE LOW PRICES ARE ENFORCED LAST YEAR'S AUDIT FOUND 55 OF 170 ITEMS THAT COST MORE THAN THEY SHOULD INCLUDING A YOGURT FLOAT FOR 299 INSTEAD OF 169 AND A KODAK FUNSAVER CAMERA FOR 1099 THAT SHOULD HAVE BEEN PRICED AT 889 TO BE FAIR 82 ITEMS WERE SELLING AT STREET PRICES AND 33 WERE BELOW THERE'S NO REASON WHY AN AIRPORT HAS TO GOUGE YOU SAYS MR BOYLE WHY PAY THREE TIMES AS MUCH FOR A CUP OF COFFEE SO MANY PITTSBURGH RESIDENTS DRIVE TO THE AIRPORT TO SHOP THAT AIRPORT AUTHORITIES HAVE A HARD TIME KEEPING PASSENGER COUNTS THE GLUTTED HOTEL MARKET DISCOVERS A NEW GROWTH OPPORTUNITY GOLF THREE OF THE NATION'S LARGEST HOTEL CHAINS ARE BEEFING UP THEIR OFFERINGS FOR DUFFERS AS HYATT HOTELS AND RESORTS HIRES ITS FIRST CHAINWIDE DIRECTOR OF GOLF OPERATIONS AND HILTON HOTELS SPINS ITS RESORTS INTO A SINGLE OPERATING UNIT AND BEGINS A MARKETING PROGRAM FOR GOLFERS A STUDY ON GOLF AND THE BUSINESS EXECUTIVE COMMISSIONED BY HYATT HOTELS LAST YEAR FOUND THAT PLAYING GOLF FREQUENTLY LEADS TO BUSINESS CONTACTS AND THAT A GOLF GAME IS A GOOD JUDGE OF CORPORATE CHARACTER THE STUDY'S OTHER FINDINGS MORE THAN HALF OF THOSE SURVEYED ADMIT TO HAVING THROWN OR BROKEN A CLUB AFTER A BAD SHOT 55 SAY THEY'VE CALLED IN SICK TO GO PLAY GOLF AND 12 BELIEVE GOLF IS MORE IMPORTANT THAN SEX IT'S ONE OF THE FEW MARKET SEGMENTS TO GROW AND GROW AND GROW OVER THE LAST SEVERAL YEARS SAYS A HILTON SPOKESWOMAN MARRIOTT GOLF A UNIT OF MARRIOTT INTERNATIONAL CLAIMS 18 STRAIGHT YEARS OF PROFITABILITY WITH A 20 RETURN ON INVESTMENT A RECORD HOTELS ARE HARDPRESSED TO MATCH GOLF IS MUCH MORE THAN A LEISURE EXERCISE IN THE '90S IT'S TRULY A BUSINESS ACTIVITY SAYS JOHN EASTERBROOK HYATT'S NEW GOLF OPERATIONS DIRECTOR HIMSELF A PGARATED PRO WITH A ZERO HANDICAP THERE ARE 30 MILLION GOLFERS IN THE US AND THERE WILL BE 20 MILLION MORE BY 2000 HYATT HAS 14 FACILITIES WITH GOLF COURSES AND IS PUSHING TO DEVELOP A TOTAL GOLF PRODUCT IT HAS INSTALLED A SPECIAL TOLLFREE RESERVATION LINE FOR GOLFERS WHOSE OPERATORS ARE TRAINED IN GOLFING LINGO BOTH CONTINENTAL AIRLINES AND USAIR GROUP INC IN APRIL SAY THEY'LL START STRICTLY ENFORCING THE TWOBAG CARRYON LIMIT THE BETTER TO ACCOMMODATE QUICK TURNAROUNDS FOR THEIR NEW EAST COAST SHORTHAUL SERVICES THE SUNSET MARQUIS HOTEL & VILLAS IN WEST HOLLYWOOD INSTALLS WHAT MAY BE THE ULTIMATE GUEST AMENITY A RECORDING STUDIO 9403290011 940329 INTERNATIONAL SEOUL STOCK MARKET SOFTENS AS FOREIGNERS REACT TO PYONGYANG'S SABER RATTLING BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL FOREIGN INVESTORS ARE TURNING SKITTISH TOWARD SOUTH KOREAN SECURITIES AMID GROWING TENSION OVER NORTH KOREA'S SUSPECTED NUCLEAR WEAPONS PROGRAM THE PREMIUMS FOREIGNERS PAY FOR KOREAN SHARES ON THE OVERTHECOUNTER MARKET HAVE PLUMMETED MEANWHILE THE KOREAN COMPOSITE STOCK INDEX THE MAIN BAROMETER OF BLUECHIP SHARES HAS DECLINED MODERATELY SINCE INTERKOREAN NEGOTIATIONS BROKE DOWN 10 DAYS AGO AND KOREAN BORROWERS ARE FINDING THE INTERNATIONAL BOND MARKET A BIT LESS WELCOMING SEOUL SHARE PRICES REBOUNDED YESTERDAY THE COMPOSITE INDEX ENDED THE DAY AT 88325 UP 1057 POINTS OR ABOUT 12 THAT'S STILL DOWN ABOUT 1 FROM THE LEVEL JUST BEFORE THE TALKS COLLAPSED HOWEVER NORTH KOREA'S SABER RATTLING IS A DEFINITE NEGATIVE SAYS W TODD KILBORN THE SEOUL MANAGER FOR WORLDSEC INTERNATIONAL LTD A HONG KONGBASED EQUITIES TRADING COMPANY AND AN AFFILIATE OF JAPAN'S MITSUBISHI BANK KOREANS TEND TO SEE WHAT THE FOREIGNERS WILL DO AND FOREIGN SENTIMENT HAS BEEN REAL BAD THE KOREAN STOCK MARKET WAS ONE OF ASIA'S BEST PERFORMERS FROM LAST SEPTEMBER TO FEBRUARY RISING NEARLY 50 THEN THE FINANCE MINISTRY COOLED PRICES BY DIRECTING KOREAN INSTITUTIONS TO WINNOW THEIR HOLDINGS THE MEASURES WORKED TOO WELL HOWEVER BY MARCH 10 THE MINISTRY WAS TRYING TO SHORE UP PRICES BY CUTTING THE LEVEL OF DEPOSITS INVESTORS MUST PLACE WITH BROKERAGES TO BACK UP BUY ORDERS BUT NO GOVERNMENT HAND COULD REPAIR THE DAMAGE DONE BY NORTH KOREAN NEGOTIATORS WHEN THEY STORMED OUT OF INTERKOREAN TALKS MARCH 19 THREATENING TO TURN SEOUL INTO A SEA OF FIRE IF SOUTH KOREA DIDN'T BACK OFF WHAT PYONGYANG SAID WERE UNREASONABLE DEMANDS FOREIGNERS HAVE SOLD KOREAN SHARES HEAVILY THIS MONTH IN THE FIRST 23 DAYS OF MARCH THEY SOLD 589 BILLION WON 73 MILLION MORE THAN THEY PURCHASED THAT SELLING LED TO A SHARP DECLINE IN PRICES ON SEOUL'S OVERTHECOUNTER MARKET FOR SHARES AVAILABLE TO FOREIGN INVESTORS BECAUSE THE GOVERNMENT LIMITS FOREIGN INVESTORS TO HOLDING NO MORE THAN A TOTAL OF 10 OF THE SHARES IN KOREAN COMPANIES THE PORTION OF THE SHARES AVAILABLE TO FOREIGNERS USUALLY TRADES AT A BIG PREMIUM TO THE OFFICIAL STOCK MARKET PRICE AT WHICH DOMESTIC INVESTORS BUY AND SELL JUST BEFORE PYONGYANG'S TANTRUM FOREIGNERS WERE PAYING A PREMIUM OF ABOUT 50 FOR SHARES IN KOREA ELECTRIC POWER CORP IN THE PAST WEEK HOWEVER THAT PREMIUM HAS PLUNGED TO ABOUT 3 SHARE PRICES FOR CLOSEDEND KOREA EQUITY FUNDS MANAGED OVERSEAS ALSO HAVE DROPPED THE TYPICAL PREMIUM TO NET ASSET VALUE ON SUCH FUNDS IS ABOUT 5 DOWN FROM 25 EARLIER THIS MONTH BROKERS SAY BROADLY SPEAKING THE EVENTS OF THE LAST WEEK HAVE NOT BEEN ENCOURAGING FOR FOREIGN INVESTORS SAID PETER THORN BRANCH MANAGER FOR THE SEOUL ARM OF WI CARR FAR EAST LTD BUT ONE COULD INTERPRET THIS AS A GOOD BUYING OPPORTUNITY HE SAID SHARES OF SAMSUNG ELECTRONICS CO WHOSE PREMIUM HAS FALLEN TO ABOUT 20 FROM 50 BEFORE THE TALKS BROKE DOWN LOOK PARTICULARLY TEMPTING THE HEIGHTENED TENSIONS ON THE PENINSULA ARE ALSO UNSETTLING THE BOND MARKETS YIELDS ON YANKEE BONDS FROM THE KOREA DEVELOPMENT BANK AND THE KOREAN EXPORTIMPORT BANK HAVE EDGED UP TO A PREMIUM OF 116 PERCENTAGE POINTS OVER SIMILAR US TREASURY BOND ISSUES COMPARED WITH 108 POINTS EARLIER THIS MONTH ACCORDING TO FIGURES RELEASED LAST WEEK BY THE KOREA STOCK EXCHANGE AS A RESULT FOREIGN BANKERS SAY SOME FIRMS ARE SHELVING LOAN REQUESTS KOREAN COMPANIES ARE QUITE PRICE SENSITIVE NOTED THE COUNTRY MANAGER OF A MAJOR US BANK AND IF THEY CAN'T GET GOOD TERMS THEY'RE LIKELY TO JUST HOLD OFF 9403290010 940329 INTERNATIONAL GERMAN CONSTRUCTION WORKERS FRANKFURT GERMANY'S 14 MILLION CONSTRUCTION WORKERS WILL RECEIVE A 24 PAY INCREASE EFFECTIVE FRIDAY UNDER A WAGE SETTLEMENT AGREED TO OVER THE WEEKEND IN ADDITION EASTERN GERMAN CONSTRUCTION PAY SCALES WILL BE BOOSTED ON SEPT 1 TO 90 OF THE WESTERN GERMAN PAY SCALE FROM THE CURRENT 85 THE UNION HAD SOUGHT PARITY 9403290008 940329 INSURERS' LOSSES ON CATASTROPHES REACH 7 BILLION FIRSTQUARTER CLAIMS DATA OVERSHADOW A REPORT OF STRONG 1993 PROFIT BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INSURANCE LOSSES FROM WINTER STORMS THE LOS ANGELES EARTHQUAKE AND OTHER CATASTROPHES ARE EXPECTED TO EXCEED 7 BILLION FOR THE FIRST QUARTER OF 1994 ONE OF THE WORST PERIODS EVER FOR THE NATION'S PROPERTY AND CASUALTY INSURERS THE LATEST CATASTROPHE CLAIM ESTIMATES OVERSHADOW A REPORT ISSUED YESTERDAY SHOWING THAT THE INSURERS POSTED NET INCOME OF 185 BILLION LAST YEAR MORE THAN THREE TIMES THE 58 BILLION NET INCOME IN THE CATASTROPHERIDDEN YEAR OF 1992 ACCORDING TO THE INSURANCE SERVICES OFFICE INC AND THE NATIONAL ASSOCIATION OF INDEPENDENT INSURERS THE 7 BILLION ESTIMATE DOES NOT INCLUDE A STRING OF TORNADOES THAT HIT FOUR SOUTHERN STATES OVER THE WEEKEND SEAN MOONEY SENIOR VICE PRESIDENT OF THE INSURANCE INFORMATION INSTITUTE SAID FROM AN INSURANCE POINT OF VIEW THIS WILL BE THE WORST WINTER ON RECORD IN CONTRAST IN THE FULLYEAR 1993 LOSSES FROM CATASTROPHES TOTALED JUST 57 BILLION IN 1992 THE NATION'S WORST YEAR FOR CATASTROPHES INSURERS POSTED 23 BILLION IN CATASTROPHE LOSSES AND THE SECONDWORST YEAR 1989 LEFT THEM WITH 76 BILLION IN DISASTER RED INK IT'S A LITTLE BIT OF CALM BETWEEN STORMS MR MOONEY SAID OF THE 1993 FIGURES WHICH ARE ESTIMATED TO REPRESENT 96 OF THE COUNTRY'S PROPERTY AND CASUALTYINSURANCE BUSINESS WE'RE OBVIOUSLY VERY CONCERNED ABOUT 1994 WHILE THE TORNADOES QUICKLY MET THE 5 MILLION 1000CLAIM THRESHOLD IN INSURED PROPERTY LOSSES TO BE DECLARED A CATASTROPHE DAMAGE ESTIMATES ARE NOT EXPECTED FOR SEVERAL DAYS ACCORDING TO THE AMERICAN INSURANCE SERVICES GROUP A TRADE GROUP AND OFFICIAL SCOREKEEPER FOR DISASTER CLAIMS FOR 1993 THE TWO INSURANCETRADE GROUPS FOUND THAT THE INDUSTRY'S UNDERWRITING LOSS DROPPED TO 187 BILLION FROM 36 BILLION A DECLINE MAINLY EXPLAINED BY FEWER CATASTROPHES AMONG 1993'S WORST DISASTERS WAS A BLIZZARD THAT EDGED UP THE EAST COAST WHILE 1992 GAVE THE INDUSTRY TWO MAJOR HURRICANES INCLUDING THE 165 BILLION ANDREW IN ADDITION TO HIGHER CLAIM LOSSES ANALYSTS SAY THAT THE INSURANCE COMPANIES COULD EARN LESS INCOME ON THEIR INVESTMENTS THIS YEAR IF THE BOND MARKET CONTINUES TO PERFORM POORLY IN THE FOURTH QUARTER OF 1993 THE INDUSTRY'S CONSOLIDATED NET INCOME WAS 59 BILLION AGAINST A NET LOSS OF 12 BILLION A YEAR EARLIER BUT THE 8 BILLION OF NET INVESTMENT INCOME FOR THE FOURTH QUARTER OF 1993 WAS DOWN 43 FROM 83 BILLION A YEAR EARLIER MEANWHILE AM BEST CO THE INSURANCE RATING CONCERN SAID THERE'S MORE BAD NEWS ON THE HORIZON FOR PROPERTY AND CASUALTY INSURERS STEMMING FROM UNDERWRITING OF YEARS PAST YESTERDAY THE RATING CONCERN SAID THE INSURERS OVER THE NEXT 25 YEARS WILL FACE ENVIRONMENTAL AND ASBESTOS CLAIMS WITH A VALUE IN TODAY'S DOLLARS OF 132 BILLION BUT THOSE INSURERS HAVE SO FAR RESERVED OR PAID JUST 15 BILLION IN CLAIMS AS A RESULT YOU'RE GOING TO HAVE SUBSTANTIAL EARNINGS DRAIN AND CAPITAL DEPRECIATION FOR THE 50 OR SO INSURERS WHO WROTE MOST OF THE INSURANCE AT COMPANIES FACING THE LIABILITIES SAID JOHN SNYDER AN AM BEST SENIOR VICE PRESIDENT MR SNYDER SAID POSSIBLE SUPERFUND REFORM MIGHT LESSEN THE COST TO INSURERS BY CURTAILING LITIGATION COSTS AND STREAMLINING CLEANUP PROCESSES 9403290007 940329 CREDIT RATINGS KROGER CO CINCINNATI MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED ITS RATINGS ON 27 BILLION OF KROGER'S LONGTERM DEBT IN PART BECAUSE OF THE GROCERYSTORE CHAIN'S STRONG AND GEOGRAPHICALLY DIVERSIFIED CUSTOMER FRANCHISE THE RATING AGENCY ALSO CITED KROGER'S IMPROVING DEBTCOVERAGE RATIOS AND THE COMPANY'S BUSINESSDEVELOPMENT STRATEGY WHICH SHOULD TRANSLATE INTO SUBSTANTIALLY HIGHER EARNINGS AND CASH FLOW MOODY'S RAISED KROGER'S SENIOR SECURED NOTES TO BA1 FROM BA2 LEASE CERTIFICATES SENIOR UNSECURED NOTES MEDIUMTERM NOTE PROGRAM AND INDUSTRIAL REVENUE BONDS TO BA2 FROM BA3 SENIOR SUBORDINATED NOTES GENERALTERM NOTES AND RESET NOTES TO BA3 FROM B1 JUNIOR SUBORDINATED DEBENTURES TO B2 FROM B3 AND SHELF REGISTRATION TO BA2/BA3/B1 FROM BA3/B1/B2 USG CORP CHICAGO MOODY'S INVESTORS SERVICE INC RAISED ITS RATING ON ABOUT 12 BILLION IN LONGTERM DEBT OF THIS BUILDING MATERIAL CONCERN THE RATING AGENCY CITED FAVORABLE CONDITIONS FOR THE GYPSUMWALLBOARD INDUSTRY AS WELL AS USG'S RECENT REFINANCING THAT IMPROVED ITS FINANCIAL FLEXIBILITY AND DEBTPROTECTION MEASUREMENTS MOODY'S BOOSTED USG'S SENIOR SECURED NOTES THAT HAVE OPERATING COMPANY GUARANTEES TO SINGLEB1 FROM SINGLEB2 IT ALSO RAISED THE COMPANY'S OTHER SENIOR NOTES SENIOR SINKING FUND DEBENTURES AND INDUSTRIAL REVENUE BONDS TO SINGLEB2 FROM SINGLEB3 SENIOR SINKING FUND DEBENTURES MEDIUMTERM NOTES AND INDUSTRIAL REVENUE BONDS ISSUED BY USG'S US GYPSUM CO UNIT WERE RAISED TO SINGLEB1 FROM SINGLEB2 STANDARD & POOR'S CORP SIMILARLY RAISED ITS RATINGS ON USG'S DEBT RECENTLY 9403290006 940329 STUDY SHOWS YOUNG ADULTS HAVE LAPSES IN INSURANCE WASHINGTON HALF OF THE YOUNG ADULTS IN THE US FIND THEMSELVES WITHOUT HEALTH INSURANCE FOR AT LEAST A BRIEF PERIOD ACCORDING TO A NEW CENSUS BUREAU REPORT ACCORDING TO THE REPORT HALF OF THE PEOPLE FROM 18 TO 24 YEARS OLD SPENT AT LEAST ONE MONTH WITHOUT HEALTH INSURANCE FROM FEBRUARY 1990 TO SEPTEMBER 1992 DURING THAT PERIOD 60 MILLION AMERICANS ONE PERSON IN FOUR HAD A LAPSE IN HEALTH COVERAGE ACCORDING TO THE STUDY THE FIGURES ARE CONSISTENT WITH EARLIER ESTIMATES OF THE NUMBER OF PEOPLE WHO LACK INSURANCE AT VARIOUS TIMES IN A SECOND REPORT THE CENSUS BUREAU SAID REVENUE FOR THE NATION'S HEALTH INDUSTRIES EXCEEDED 625 BILLION IN 1992 A 9 INCREASE FROM THE PREVIOUS YEAR HOSPITALS CLAIMED MORE THAN HALF THE REVENUE OR 335 BILLION WHILE DOCTORS CLAIMED 150 BILLION REVENUE FOR HOSPITALS AND DOCTORS ROSE 8 AND 9 RESPECTIVELY NURSING HOMES HAD 42 BILLION IN REVENUE UP 8 FROM 1991 HOME HEALTHCARE AND KIDNEYDIALYSIS CENTERS POSTED THE LARGEST ANNUAL REVENUE GAIN 22 EACH 9403290005 940304 POTOMAC WATCH WHEN A BRIDGE TO BILL ISN'T WORTH BUILDING BY PAUL A GIGOT REPUBLICANS ARE DEBATING HEALTH CARE IN MARYLAND TODAY BUT MAYBE THEY SHOULD JUST WATCH BRIDGE ON THE RIVER KWAI THE BRITISH COLONEL PLAYED BY ALEC GUINNESS IN THAT MOVIE BECOMES SO ATTACHED TO THE BRIDGE HE BUILDS FOR HIS JAPANESE CAPTORS THAT IN THE END HE WON'T BLOW IT UP EVEN TO HELP WIN THE WAR SOME REPUBLICAN COLONELS HAVE BECOME SO ATTACHED TO THEIR OWN HEALTH CARE PLANS THAT THEY ARE LOSING SIGHT OF THE LARGER PHILOSOPHICAL AND POLITICAL STAKES IN THE HEALTH DEBATE THEY COULD YET HELP LIBERAL DEMOCRATS WIN THE WAR THE GOOD NEWS FOR REPUBLICANS IS THAT PRESIDENT CLINTON'S PLAN IS FAST LOSING PUBLIC SUPPORT BUT THE BAD NEWS IS THAT THIS OWES LITTLE TO REPUBLICANS CLINTONCARE IS COLLAPSING OF ITS OWN COMPLEXITY BUSINESSES DOCTORS AND INSURERS HAVE ALL FANNED THE DOUBTS OF A PUBLIC HIGHLY SKEPTICAL ABOUT ANY NEW GOVERNMENT PROGRAM ESPECIALLY ONE LOADED WITH ALLIANCES AND OTHER BELTWAY MYSTERIES MR CLINTON IS EVEN LOSING AMONG THE VERY PEOPLE HIS PROGRAM IS DESIGNED TO LURE THE VOTING MIDDLE CLASS THE LATEST ABC/WASHINGTON POST POLL SHOWS THAT 48 OF AMERICANS THINK CLINTONCARE WILL HURT THE MIDDLE CLASS WHILE 58 THINK IT WILL HELP THE POOR VOTERS SMELL THE OLD DEMOCRAT POLITICS OF REDISTRIBUTION BILL MCINTURFF A GOP POLLSTER ADDS THAT THE PLAN IS SUFFERING AMONG ALL GROUPS EXCEPT CORE DEMOCRATS BY 63 TO 26 FOR EXAMPLE ROSS PEROT VOTERS SAY THEY LIKE THE PLAN LESS THE MORE THEY LEARN ABOUT IT SO WHY DOES MR CLINTON STILL SEEM SO RELAXED PERHAPS HE KNOWS THAT WHILE HIS PLAN AS WRITTEN IS DEAD A COMPROMISE THAT CONTAINS THE CORE OF THE CLINTON VISION REMAINS ALIVE AND BECAUSE REPUBLICANS HAVEN'T OFFERED AN ALTERNATIVE VISION OF THEIR OWN THEY MAY YET TRY TO PLAY ALEC GUINNESS THE GOP'S INTELLECTUAL DISARRAY HAS BEEN OBVIOUS EVEN IN THE PLANNING FOR THIS WEEK'S TWODAY HEALTH RETREAT A WORD THAT COULD YET BE PROPHETIC PLANNED BY RHODE ISLAND SEN JOHN CHAFEE AND HIS LIBERAL STAFFER CHRISTINE FERGUSON THE AGENDA COULD HAVE BEEN SUGGESTED BY HILLARY RODHAM CLINTON DEBATE OVER THE VARIOUS GOP HEALTH PLANS FOR EXAMPLE WAS GOING TO BE LED LAST EVENING BY A FORMER AIDE TO THAT LEGENDARY REPUBLICAN TED KENNEDY THEN HARVARD ECONOMIST ROBERT BLENDON WAS INVITED TO LEAD THE DISCUSSION ON PUBLIC OPINION HE'S OFTEN BRIEFED THE CLINTONS AND HAS FAVORED AN EMPLOYER MANDATE SUPPOSEDLY A GOP TABOO FOR YEARS COULD THIS BE A SLY PLAN TO KNOW THY ENEMY DOUBTFUL THE RESPONSE TO MR BLENDON WAS OFFERED BY ROBERT TEETER THE SAME POLLSTER WHO ADVISED RICHARD THORNBURGH ON HEALTH CARE IN HIS DISASTROUS 1991 SENATE RACE CHOOSING THESE TWO TO DEBATE HEALTH CARE IS LIKE ASKING THE GALLO BROTHERS TO DEBATE WINE ALL OF THIS CAUSED A STIR AMONG GOP SENATORS WHO TALKED ABOUT BOYCOTTING THE RETREAT IF MR CHAFEE DIDN'T OPEN UP THE AGENDA WHICH HE DID THEIR IRE WAS FURTHER RAISED BY NEWS REPORTS THAT MR CHAFEE WAS MEETING SECRETLY WITH DEMOCRATS TO STRIKE A DEAL TO RESCUE MR CLINTON MR CHAFEE'S OFFICE DENIES IT ALTHOUGH HE REMAINS BILL'S FAVORITE REPUBLICAN ONLY YESTERDAY MR CLINTON PREDICTED THAT PEOPLE OF GOOD FAITH LIKE SENATOR CHAFEE WILL GET TOGETHER AND COME UP WITH A SYSTEM THAT MEETS THE CRITERIA I HAVE LAID OUT THAT'S THE RUB THE CRITERIA I HAVE LAID OUT MR CLINTON WILL GIVE UP EVERYTHING IF HE CAN PLANT EVEN THE SEED OF WHAT HE CALLS UNIVERSAL COVERAGE BY WHICH HE MEANS AN ENTITLEMENT POLICED BY THE GOVERNMENT HE KNOWS THE POLITICS EVER AFTER WOULD BE SPLENDID FOR LIBERAL DEMOCRATS EVERY YEAR THEY WOULD FORCE A VOTE IN CONGRESS ON EXPANDING THIS BENEFIT OR THAT RULE WHILE REPUBLICANS WOULD LOOK LIKE SKINFLINTS THIS IS HOW MEDICARE BECAME LACED WITH PRICE CONTROLS AND MEDICAID GREW LIKE TOPSY MR CHAFEE CAN BE A PARTISAN REPUBLICAN BUT HE AND SOME OTHERS HAVE BEEN BUILDING THE HEALTH BRIDGE FOR SO LONG THAT THEIR PLAN ACCEPTS MR CLINTON'S GOVERNMENT ENTITLEMENT THIS IS A SLIPPERY SLOPE SAYS NEW HAMPSHIRE SEN JUDD GREGG EVERY ONE OF THE PLANS CLINTON COOPER CHAFEE IS A PRECURSOR TO SINGLEPAYER WHICH IS THE CANADIAN PLAN NOT TODAY BUT IN A DECADE HE SAYS GOVERNMENT ALWAYS MOVES LEFT THAT'S WHY SMART REPUBLICANS WANT THEIR PARTY TO UNITE BEHIND REFORM PRINCIPLES ROOTED IN INDIVIDUAL CHOICE NOT IN STATE COERCION MR GREGG PAUL COVERDELL OF GEORGIA AND THE OTHER GOP SENATE FRESHMEN ARE PUSHING THE IDEAS OF A CONSENSUS GROUP OF HEALTH ECONOMISTS INSTEAD OF REDOING THE ENTIRE HEALTH SYSTEM THEY WANT TO OFFER SENATE AMENDMENTS TO SOLVE THE SPECIFIC PROBLEMS THAT WORRY THE MIDDLECLASS INSURANCE PORTABILITY PREEXISTING CONDITIONS AND SO ON WITH SOME DIFFERENCES THIS IS ALSO THE STRATEGY ENDORSED BY GOP CHAIRMAN HALEY BARBOUR AND STRATEGISTS DON DEVINE AND WILLIAM KRISTOL BY SUPPORTING THESE SPECIFIC REFORMS NOW INSTEAD OF JOINING A GRAND CLINTON SUMMIT REPUBLICANS WOULD ALSO APPLY SOME PRESSURE ON MODERATE DEMOCRATS TO MOVE THEIR WAY REP ROY ROWLAND A DOCTOR AND GEORGIA DEMOCRAT INTRODUCED A PROMISING BILL YESTERDAY WITH 15 DEMOCRATIC AND 15 GOP COSPONSORS BUT IF REPUBLICANS ARE DIVIDED AND INCOHERENT THEN DEMOCRATS WILL ONLY HAVE INCENTIVE TO MOVE LEFT MR CLINTON IS TRYING TO REPLAY THE ENTITLEMENT POLITICS OF THE 1960S BUT AMERICANS ARE VASTLY MORE SKEPTICAL OF GOVERNMENT NOW REPUBLICANS MIGHT EVEN BE ABLE TO WIN A HEALTH CARE DEBATE PUTTING TOGETHER A NAFTALIKE REFORM COALITION THAT FIXES THE SYSTEM WITHOUT DESTROYING IT THAT'S AT LEAST A BRIDGE WORTH BUILDING SEE RELATED LETTERS LETTERS TO THE EDITOR CAN WE GUARANTEE HEALTH INSURANCE WSJ MARCH 29 1994 9403040080 YY94 MM03 9403290004 940329 GET TOUGH WITH NORTH KOREA BY JAMES LILLEY NORTH KOREA HAS REPEATEDLY RESORTED TO THREATS TO USE FORCE AGAINST SOUTH KOREA TO INFLUENCE SEOUL TO DEAL THE AMERICAN IMPERIALISTS A PUNISHING BLOW TO DEFEND ITS SOVEREIGNTY ITS THREATS HAVE CAUSED TREMORS IN SEOUL BEIJING TOKYO AND EVEN IN WASHINGTON SOME ON THE WESTERN SIDE HAVE SAID WAR MUST BE PREVENTED AT ALL COSTS THAT IT IS TIME TO CANCEL THE TEAM SPIRIT EXERCISES WITHDRAW THE OFFER OF PATRIOT MISSILES RESUME BILATERAL DISCUSSIONS IMMEDIATELY OFFER NORTH KOREA AID DIPLOMATIC RECOGNITION TRADE ANYTHING TO STOP THE WEIRD AND UNPREDICTABLE LEADERS IN PYONGYANG FROM LAUNCHING A SUICIDAL WAR THE FIRST STEP IN PREVENTING WAR IS FOR THE US TO SEND A CLEAR AND UNMISTAKABLE MESSAGE TO PYONGYANG THAT ANY RESORT TO FORCE BY NORTH KOREA WILL RESULT IN ITS ULTIMATE DESTRUCTION THIS MUST BE DELIVERED AT THE HIGHEST LEVEL AND BE BACKED UP WITH THE MACHINERY TO CARRY IT OUT FOR ITS PART THE US WOULD PLEDGE NO FIRST USE OF FORCE SOME US FRIENDS AND ALLIES IN ASIA WOULD WORRY ABOUT OUR STRONG RHETORIC AND OUR CONCRETE MOVES IN COUNTERING THE NORTH KOREAN THREAT OF FORCE BUT THERE IS NO OTHER WAY TO DEAL WITH NORTH KOREA HISTORICAL EXPERIENCE BEARS THIS OUT THE KOREAN WAR IN 1950 WAS IN PART CAUSED BY CONFUSING AMERICAN ACTIONS RECALL THE WITHDRAWAL OF ALL AMERICAN TROOPS FROM SOUTH KOREA IN 1948 AND SECRETARY OF STATE DEAN ACHESON'S AMBIGUITY IN JANUARY 1950 OVER WHETHER THE KOREAN PENINSULA WAS WITHIN THE US DEFENSIVE PERIMETER KIM IL SUNG MET WITH STALIN IN THE SPRING OF 1950 AND TOLD HIM THAT THE NORTH COULD OCCUPY ALL OF SOUTH KOREA IN A MATTER OF WEEKS AND THAT THE US WOULD NOT INTERVENE MILLIONS DIED AS A RESULT OF THIS TRAGIC MISCALCULATION YET A CREDIBLE AMERICAN THREAT OF FORCE HAS WORKED WITH NORTH KOREA IN THE PAST IT WORKED IN SECURING THE RELEASE OF THE PUEBLO'S CREW IN 1968 AFTER PYONGYANG HAD SEIZED THE SHIP AND HELD THE MEN FOR 11 MONTHS IT ALSO WORKED WHEN AMERICAN B52 BOMBERS OVERFLEW THE DEMILITARIZED ZONE AFTER THE AX MURDER OF TWO AMERICANS AT PANMUNJON IN 1976 THE SCARE FORCED NORTH KOREA TO CONCILIATE AND SHORTLY AFTER THENDEFENSE SECRETARY RICHARD CHENEY DECIDED NOT TO WITHDRAW 5000 US TROOPS FROM SOUTH KOREA IN NOVEMBER 1991 NORTH KOREA SIGNED TWO AGREEMENTS WITH THE SOUTH ON RECONCILIATION AND DENUCLEARIZATION EXPERIENCED SOUTH KOREAN NEGOTIATORS HAVE TOLD THE US REPEATEDLY THAT NORTH KOREA VIEWS CONCESSIONS AS WEAKNESS AND REACTS FAVORABLY ONLY TO CLARITY OF INTENT BACKED BY POWER THE NORTH KOREAN GAME PLAN HAS BECOME INCREASINGLY APPARENT PYONGYANG WANTS TO PRESERVE NUCLEAR WEAPONS TO ENSURE ITS OWN SURVIVAL NORTH KOREA'S ECONOMY IS FAILING IT NEEDS TRADE AID AND INVESTMENT FROM THE WEST SOUTH KOREA AND JAPAN TO KEEP KIM IL SUNG'S REGIME ALIVE THE NORTH WANTS TO HAVE BOTH ITS WEAPONS AND ECONOMIC AID IT WILL THEREFORE PERMIT INSPECTIONS OF ITS INSTALLATIONS ONLY IN SO FAR AS THEY DO NOT REVEAL THE NUCLEAR WEAPONS PROGRAM IF INTRUSIVE CHALLENGE INSPECTIONS ARE PUSHED OR IF ECONOMIC SANCTIONS ARE IMPLEMENTED THE NORTH KOREANS WILL THEN USE THE THREAT OF WAR TO FORCE CONCESSIONS FROM THE US ON THESE KEY ISSUES THEY HAVE REASON TO BELIEVE THERE ARE INFLUENTIAL AMERICANS WHO SUPPORT THEIR POSITION HENCE THEY PERSIST THE CLINTON ADMINISTRATION IN ITS EARLY MONTHS GAVE CONFLICTING SIGNALS TO THE NORTH PRESIDENT CLINTON HIMSELF DELIVERED A STRONG MESSAGE TO NORTH KOREA IN JULY WHEN HE SAID IF THEY EVER USE THEM NUCLEAR WEAPONS IT WOULD BE THE END OF THEIR COUNTRY BUT HIS NEGOTIATORS ALLOWED THE NORTH KOREANS TO STALL TALKS DEFY AND FRUSTRATE INSPECTIONS BREAK OFF NEGOTIATIONS WITH SOUTH KOREA VIOLATE AGREEMENTS AND DOMINATE THE DIALOGUE IN BOTH NEW YORK AND GENEVA SINCE THESE NEGOTIATIONS HAVE FAILED THE PRESIDENT IS GETTING TOUGHER AND HE IS PULLING HIS SQUABBLING BUREAUCRATS INCLUDING THOSE AT THE STATE DEPARTMENT INTO LINE MR CLINTON'S GOAL SHOULD BE TO MAKE IT IMPOSSIBLE FOR NORTH KOREA TO RESORT TO FORCE ONCE THIS IS CLEARLY ESTABLISHED THEN THE FOCUS OF NEGOTIATIONS CAN BE ON POLITICAL ECONOMIC AND DIPLOMATIC MEANS TO GAIN NORTH KOREAN ACCEPTANCE OF FULL CHALLENGE INSPECTIONS AND ON RESUMPTION OF DIALOGUE WITH THE SOUTH ONLY AFTER THIS IS ACCOMPLISHED SHOULD THE INCENTIVES OF DIPLOMATIC RECOGNITION TRADE INVESTMENTS AND LOANS COME INTO PLAY OF COURSE BAD BILATERAL RELATIONS BETWEEN THE US AND CHINA WILL INFLUENCE CHINA'S ROLE IN NORTH KOREA AND LINKING MOSTFAVOREDNATION STATUS WITH HUMAN RIGHTS HAS UNFORTUNATELY POISONED THE RELATIONSHIP CHINA WAS A MAJOR FORCE IN GETTING BOTH SOUTH AND NORTH KOREA INTO THE UNITED NATIONS IN 1991 OVER KIM IL SUNG'S INITIAL STRONG OBJECTIONS TO JOINT ENTRY CHINA HAS TOLD THE US THAT NORTH KOREA IS FACING SEVERE ECONOMIC HARDSHIP THIS SPRING AND THAT IT HAS INFORMED NORTH KOREA THAT IT WILL NOT SUPPORT ANY ATTACK ON THE SOUTH IT HAS ALSO TOLD BOTH THE WEST AND NORTH KOREA THAT IT SUPPORTS A DENUCLEARIZED KOREAN PENINSULA CHINA HAS ACKNOWLEDGED PRIVATELY THAT IT HAS ECONOMIC LEVERAGE OVER NORTH KOREA AND BEIJING HAS PLAYED A KEY ROLE IN THE INTERNATIONAL ARENA BEFORE IN 1990 FOR EXAMPLE CHINA SUPPORTED A USLED COALITION AGAINST ITS THIRD WORLD FRIEND IRAQ AND DUMPED POL POT IN FAVOR OF THE UN PEACE PLAN IN CAMBODIA THE CLINTON ADMINISTRATION IS WISELY RESUMING THIS STRATEGIC DIALOGUE WITH CHINA STARTED IN 1989 BY THENNATIONAL SECURITY ADVISER BRENT SCOWCROFT IN THE FACE OF SAVAGE CRITICISM THIS RELATIONSHIP COMBINED WITH THE JAPANESE ROLE IN CUTTING REMITTANCES US MILITARY DETERRENCE AND CONTINUING INTERNATIONAL DEMANDS FOR COMPLIANCE WITH INSPECTIONS SHOULD BE SUFFICIENT TO FORESTALL BLOODY WAR MR LILLEY WAS US AMBASSADOR TO SOUTH KOREA 19861989 AND AMBASSADOR TO CHINA 198991 9403290003 940329 LETTERS TO THE EDITOR CAN WE GUARANTEE HEALTH INSURANCE PAUL GIGOT'S POTOMAC WATCH COLUMN ON REPUBLICANS AND HEALTH CARE WAS RIGHT ON THE MONEY WHEN A BRIDGE TO BILL ISN'T WORTH BUILDING MARCH 4 REPUBLICANS MUST NOT BE THE ONES TO SAVE SOCIALIZED MEDICINE FOR THE CLINTON ADMINISTRATION HOWEVER MR GIGOT JOINS ALMOST ALL OTHER ANALYSTS IN ERRING WHEN HE STATES THAT MR CLINTON'S CRITERIA FOR HEALTH CARE REFORM IS UNIVERSAL COVERAGE THIS IGNORES THE MORE IMPORTANT CRITERIA OF PRIVATE INSURANCE FOR EVERY AMERICAN THAT THE PRESIDENT INSISTED ON IN HIS STATE OF THE UNION SPEECH AND IN SUBSEQUENT STATEMENTS HERE ARE THE PRESIDENT'S OWN WORDS I WANT TO MAKE THIS VERY CLEAR IF YOU SEND ME LEGISLATION THAT DOES NOT GUARANTEE EVERY AMERICAN PRIVATE HEALTH INSURANCE THAT CAN NEVER BE TAKEN AWAY YOU WILL FORCE ME TO TAKE THIS PEN VETO THE LEGISLATION AND WE'LL COME RIGHT BACK HERE AND START ALL OVER AGAIN EMPHASIS ADDED THUS USING THE PRESIDENT'S OWN CRITERIA A SINGLEPAYER PLAN IF PASSED WOULD BE VETOED BECAUSE IT WOULD NOT PROVIDE PRIVATE INSURANCE BUT SO TOO WOULD THE PRESIDENT'S OWN PLAN WHICH WOULD ALLOW INDIVIDUAL STATES TO ADOPT A SINGLEPAYER SYSTEM THIS OF COURSE WOULD VIOLATE THE PRESIDENT'S INSISTENCE ON PRIVATE INSURANCE FOR EVERY AMERICAN WHAT THEN ARE WE TO MAKE OF THE PRESIDENT'S OFTREPEATED CRITERIA IS HIS CONTINUAL REFERENCE TO PRIVATE INSURANCE MERELY A WAY TO GIVE HIS PLAN A PATINA OF RESPECTABILITY WITH A PUBLIC GROWN WEARY OF GOVERNMENT PROGRAMS AND IF HE DOESN'T MEAN IT WHY DOES HE KEEP SAYING IT WHERE ARE THE REPORTERS ASKING THE PRESIDENT TO CLARIFY HIS REMARKS WILL SOMEONE AT THE JOURNAL STEP FORWARD HOW DOES THE COOPER HEALTH REFORM BILL DEAL WITH PREEXISTING CONDITION RESTRICTIONS IN HEALTH INSURANCE MICHAEL TANNER'S FEB 14 EDITORIALPAGE ARTICLE COOPER PLANCLINTON LITE IS SUBSTANTIALLY CORRECT GAIL SHEARER'S MARCH 11 LETTER ON THE SUBJECT WAS VERY MISLEADING THE BASIC RULE IS THAT SICKNESS INJURY OR HEALTH STATUS MAY NO LONGER BE USED BY INSURANCE COMPANIES TO DENY AMERICANS COVERAGE HR 3222 ON PAGE 69 SAYS THAT THEY MAY NOT DENY LIMIT OR CONDITION COVERAGE BASED ON THE HEALTH STATUS OF AN INDIVIDUAL CLAIMS EXPERIENCE RECEIPT OF HEALTH CARE MEDICAL HISTORY RECEIPT OF PUBLIC SUBSIDIES LACK OF EVIDENCE OF INSURABILITY OR ANY OTHER CHARACTERISTIC OF THE INDIVIDUAL THAT MAY RELATE TO THE NEED FOR HEALTH CARE SERVICES THIS OFFER IS NOT UNLIMITED BECAUSE WE DON'T WANT PEOPLE WAITING UNTIL AFTER THEY GET SICK BEFORE THEY BUY COVERAGE THEREFORE ONCE ALL OF THE REFORMS AND SUBSIDIES ARE PUT IN PLACE WE PROPOSE A SIXMONTH AMNESTY PERIOD WHICH COULD BE LONGER FOR EVERYONE TO GET COVERAGE REGARDLESS OF HEALTH IF SOMEONE FAILS TO GET COVERAGE DURING THE AMNESTY PERIOD THEN THEY MAY HAVE TO PAY A PRICE FOR THEIR OWN NEGLIGENCE AFFORDABILITY SHOULD NOT BE A PROBLEM SINCE WE PAY FOR OR SUBSIDIZE EVERYONE UP TO DOUBLE THE POVERTY LEVEL ALMOST 30000 FOR A FAMILY OF FOUR GIVE NEW TAX DEDUCTIONS FOR THE PURCHASE OF COVERAGE AND ALLOW EVERYONE TO BUY A GUARANTEED ISSUE NEARCOMMUNITYRATED HEALTH POLICY WE PROTECT NEWBORNS AND PREGNANT WOMEN BUT EVERYONE ELSE SHOULD SIGN UP FOR COVERAGE WITHIN SIX MONTHS SO THAT THEIR OWN HEALTH HISTORY BECOMES IRRELEVANT TO THE INSURANCE INDUSTRY I WISH WE COULD HAVE UNLIMITED AMNESTY BUT UNDER A VOLUNTARY SYSTEM WE CANNOT AFFORD TOO MANY FREE RIDERS THIS IS ONE WAY TO ALLOW EVERY AMERICAN TO WIPE HIS OR HER HEALTHHISTORY SLATE CLEAN WITH A MINIMUM OF GOVERNMENT INVOLVEMENT OR COERCION 9403290002 940329 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 EATON CORP 200 MILLION OF DEBENTURES PRICED IN TWO PARTS BY UNDERWRITERS LED BY LEHMAN BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 100 MILLION OF NOTES DUE APRIL 1 1999 WAS PRICED AS 6375S AT 99641 TO YIELD 646 THE DEBENTURES WERE PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 100 MILLION OF DEBENTURES DUE APRIL 1 2024 WAS PRICED AS 7625S AT 99554 TO YIELD 7663 THE DEBENTURES WERE PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE NONCALLABLE AND RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF NOTES DUE APRIL 5 1999 PRICED INITIALLY AT PAR TO YIELD 639 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO HOUGHTON MIFFLIN CO 100 MILLION OF NOTES DUE APRIL 1 2004 PRICED AS 7125S AT 994 TO YIELD 721 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION OF 10YEAR NONCALLABLE DEBENTURES DUE APRIL 5 2004 PRICED TO YIELD 6865 THE 10YEAR DEBENTURES WERE PRICED AT 99890265 WITH A 685 COUPON FIRST ALERT INC INITIAL OFFERING OF 36 MILLION COMMON SHARES PRICED AT 17 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC AND MORGAN STANLEY & CO REPTRON ELECTRONICS INC INITIAL OFFERING OF 22 MILLION COMMON SHARES PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES AND RAYMOND JAMES & ASSOCIATES NEW YORK CITY EDUCATIONAL CONSTRUCTION FUND 1386 MILLION OF SERIES 1994 REVENUE BONDS PRICED BY A MORGAN STANLEY & CO GROUP THE OFFERING INCLUDES THE FOLLOWING 692 MILLION OF SERIES A SENIOR REVENUE BONDS PRICED TO YIELD FROM 305 IN OCTOBER TO 57 IN 2007 191 MILLION OF SERIES B SENIOR SUBORDINATED REVENUE BONDS PRICED TO YIELD 595 IN 2011 AND 6 IN 2013 AND 503 MILLION OF SERIES C JUNIOR SUBORDINATED REVENUE BONDS PRICED TO YIELD FROM 305 IN OCTOBER TO 59 IN 2009 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P GLOBAL MARK INTERNATIONAL LTD INDONESIA 500 MILLION OF MANDATORY EXCHANGEABLE STEPUP COUPON EUROBONDS DUE APRIL 6 1997 AT ISSUE AND REOFFER PRICE PAR VIA UBS LTD BONDS MANDATORILY EXCHANGEABLE INTO COMMON SHARES OF PT INDOFOOD SUKSES MAKMUR FROM INITIAL PUBLIC OFFERING UNTIL MATURITY DATE BONDS EXCHANGEABLE AT 7692 INDONESIAN RUPIAHS A SHARE EQUAL TO 23 TIMES FORECAST 1994 EARNINGS PER SHARE OF 33447 RUPIAHS IF IPO DOESN'T OCCUR BONDS CALLABLE AT PRICE TO YIELD ON 1995 ANNIVERSARY 150 BASIS POINTS OVER THREEYEAR US TREASURY CALL PRICE ADJUSTED TO YIELD 175 OVER TREASURYS ON 1996 ANNIVERSARY AND 200 OVER TREASURYS AT MATURITY FEES THREE LESS 025 FOR COLEAD MANAGERS RABOBANK NEDERLAND NETHERLANDS 150 MILLION DUTCH GUILDERS OF 625 EUROBONDS DUE JULY 22 1998 AT ISSUE PRICE 102075 FOR OWN ACCOUNT BONDS WILL TRADE INTERCHANGEABLY WITH 500 MILLION GUILDERS OF IDENTICAL BONDS OUTSTANDING REOFFERED AT 101275 TO YIELD 589 A MARGIN OF EIGHT BASIS POINTS OVER COMPARABLE DUTCH STATE LOAN OF JULY 1998 OTHER TERMS UNCHANGED FEES ONE 9403290001 940329 HEARD ON THE STREET CAUTIOUS MONEY MANAGERS BEGIN TO BUY SELECTIVELY BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL NIBBLING AT A FEW STOCKS BUT NOT GOBBLING THAT'S WHAT SOME MONEYMANAGEMENT VETERANS ARE DOING NOW THAT THE DOW JONES INDUSTRIAL AVERAGE IS OFF MORE THAN 5 FROM ITS PEAK EVEN IN TOUGH TIMES THE PROS DON'T STOP BUYING ALTOGETHER IT'S A TRADER'S MARKET THINGS ARE MOVING SAYS ELIZABETH BRAMWELL THE LONGTIME ASSOCIATE OF MARIO GABELLI WHO STRUCK OUT ON HER OWN THIS YEAR BUT MANY MARKET VETERANS ARE KEEPING SOME POWDER DRY THEY WANT TO BE READY TO SNATCH UP BARGAINS IF THE STOCK MARKET'S SIXWEEK SLIDE CONTINUES BRAMWELL CAPITAL MANAGEMENT IN NEW YORK IS ABOUT 10 IN CASH DREYFUS GROWTH & INCOME FUND HAS MORE THAN 20 CASH THOUGH FUND MANAGER RICHARD HOEY STARTED TO DO A LITTLE BUYING YESTERDAY RICHARD ARMS CELEBRATED AS A TECHNICAL MARKET ANALYST HAS A FAT 50 CASH HOARD IN THE MUTUAL FUND HE STARTED RUNNING THIS YEAR WHILE MANY INVESTORS HAVE BEEN SPOOKED BY TENSIONS IN KOREA RUSSIA MEXICO AND SOUTH AFRICA MS BRAMWELL IS LOOKING FOR THE COMPANIES THAT CAN BENEFIT THERE'S A LOT OF UNREST IN THE WORLD SO I LIKE CERTAIN STOCKS SUCH AS LORAL AND GENERAL MOTORS H SHARES FOR HUGHES AIRCRAFT SHE SAYS BOTH ARE DEFENSE CONTRACTORS GM HUGHES IS ALSO INVOLVED IN A BIG PROJECT TO BRING SATELLITE TELEVISION INTO AMERICAN HOMES SHE ALSO HAS BEEN BUYING SHARES IN OM GROUP A CLEVELAND PRODUCER OF SPECIALTY CHEMICALS PARTICULARLY ONES INVOLVING COBALT FIGHTING IN SOUTH AFRICA MIGHT AFFECT SUPPLIES OF COBALT SHE BELIEVES BUT OM ISN'T AS VULNERABLE AS COMPETITORS ON AN UNRELATED NOTE MS BRAMWELL SPECULATES THAT AFTER THE HARSH WINTER JUST CONCLUDED PEOPLE MIGHT SPLURGE ON CLOTHING SHE HAS BOUGHT SHARES IN TALBOTS JONES APPAREL GROUP AND JC PENNEY MS BRAMWELL DOESN'T WANT TO TALK SPECIFICALLY ABOUT STOCKS SHE'S BEEN SELLING BUT SHE IS AVOIDING INTERESTRATESENSITIVE STOCKS FOR THOSE SHE SAYS MAYBE THERE'S A TIME TO PICK UP YOUR MARBLES AND GO HOME FOR A WHILE MR ARMS CREATOR OF THE ARMS INDEX WIDELY USED BY TECHNICALMARKET ANALYSTS RUNS 120 MILLION AT ARMS COS IN ALBUQUERQUE NM INCLUDING 40 MILLION IN INVESTORS RESEARCH FUND A MUTUAL FUND IN PRIVATE ACCOUNTS THAT ALLOW THE TECHNIQUE HE HAS BEEN SHORTSELLING S&P 500 INDEX FUTURES BETTING THAT THE STOCK MARKET WILL DECLINE IN HIS MUTUAL FUND MR ARMS CAN'T PLAY WITH INDEX FUTURES BUT HE HAS 50 IN CASH AS HE EXPECTS THE MARKET TO CONTINUE TO HEAD SOUTH WE ARE SEEING SOME VERY STRANGE NUMBERS ON THE ARMS INDEX HE SAYS LATELY MR ARMS SAYS RISING STOCKS HAVE BEEN HOGGING A DISPROPORTIONATE SHARE OF TRADING VOLUME EVEN THOUGH THE MARKET HAS BEEN FALLING A WORRISOME SIGN IN HIS VIEW SO MANY PEOPLE OUT THERE BELIEVE THAT ANY PULLBACK IS A BUYING OPPORTUNITY THAT THEY ARE POURING MONEY INTO THE FEW STOCKS THAT ARE RISING MR ARMS SAYS MR ARMS HAS BEEN DOING SOME SELECTIVE BUYING CONCENTRATING ON STOCKS THAT SEEM TO HAVE BOTTOMED OUT AFTER A LONG FALL HE HAS BOUGHT BATTERED DRUG STOCKS SUCH AS MERCK AND UPJOHN COMPUTER STOCKS SUCH AS INTERNATIONAL BUSINESS MACHINES AND APPLE COMPUTER AND FOOD STOCKS INCLUDING KELLOGG AND HJ HEINZ AT THE SAME TIME HE HAS BEEN TOSSING OUT TELECOMMUNICATIONS STOCKS AND INFORMATION HIGHWAY STOCKS HE INHERITED WHEN HE TOOK OVER INVESTORS RESEARCH FUND AT THE START OF THE YEAR BRETT BRUBAKER PRESIDENT OF ABRAHAM & SONS IN CHICAGO WASN'T A BEAR FOR THE PAST TWO YEARS BUT NOW HAS 75 OF HIS HEDGE FUND'S MONEY IN SHORT SALES A SHORT SALE IS A BET THAT A STOCK WILL DECLINE THE SHORTSELLER BORROWS STOCK AND IMMEDIATELY SELLS IT EVENTUALLY HE MUST BUY STOCK TO REPLACE THE BORROWED SHARES BUT IF THE STOCK FALLS IN THE MEANTIME HE PROFITS BECAUSE THE REPLACEMENT SHARES ARE PURCHASED CHEAPLY THE STOCKS THAT GOT WAY OVEREXTENDED ARE ECONOMICALLY SENSITIVE STOCKS SUCH AS CHRYSLER AND AIRGAS MR BRUBAKER SAYS THOSE ARE AMONG HIS CHIEF SHORT POSITIONS ALONG WITH LOTUS DEVELOPMENT WHICH HE THINKS IS TOO EXPENSIVE AT 43 TIMES THE PAST FOUR QUARTERS' EARNINGS ON THE BUY SIDE MR BRUBAKER HAS BEEN CHOOSING BEATENUP NAMES SUCH AS AMGEN A BIOTECHNOLOGY COMPANY FLEMING A FOOD DISTRIBUTOR WMX TECHNOLOGIES AND ROLLINS ENVIRONMENTAL SERVICES BOTH WASTEDISPOSAL COMPANIES MY HUNCH IS THAT WE HAVE SEEN THE HIGHS FOR SOME TIME HE SAYS THE TIDE'S GOING OUT I THINK ONE GLOOMY SIGN HE SAYS IS THAT THE DOW JONES UTILITY AVERAGE IS DOWN ABOUT 20 FROM ITS HIGH SINCE UTILITY STOCKS ARE OFTEN CONSIDERED A HARBINGER OF INTERESTRATE TRENDS HE THINKS MORE RATE INCREASES ARE STILL AHEAD BONDS AND UTILITY STOCKS BOTH ROSE YESTERDAY HELPING STOCKS RECOVER FROM HEAVY MIDDAY LOSSES MR HOEY OF DREYFUS GROWTH & INCOME FUND SAYS THAT UNTIL YESTERDAY HE HAD BEEN RAISING CASH BY LETTING THE CASH FLOW THAT'S COMING INTO THE FUND ACCUMULATE MR HOEY WON'T SAY EXACTLY HOW MUCH CASH HE HAS IN THE 16 BILLION FUND BUT ALLOWS THAT IT'S MORE THAN 20 YOU HAD A MARKET THAT HAD GOTTEN SO OVERBOUGHT AND BOISTEROUS THAT IT WAS HARD TO BUY EVEN THE STOCKS YOU LIKED HE SAYS AFTER SIX WEEKS OF DECLINE THAT BEGAN IN EARLY FEBRUARY THE MARKET HAS LOST MOMENTUM BUT IT'S NOT AS EXPENSIVE AS IT WAS HE HAS TURNED NEUTRAL ON THE MARKET RATHER THAN NEGATIVE YESTERDAY MR HOEY UNLEASHED PART OF HIS CASH HOARD TO ADD A BIT TO HIS PREVIOUS POSITIONS IN FLUOR GTE AND ALBANY INTERNATIONAL FLUOR HE SAYS HAS BEEN DEAD FOR A LONG PERIOD OF TIME AND IS A LONGTERM BENEFICIARY OF THE TREND TOWARDS INFRASTRUCTURE DEMAND GTE IS NOT A VERY EXCITING COMPANY BUT IT'S DOWN FROM 39 7/8 TO 31 AND CHANGE THE STOCK YESTERDAY WAS AT 31 7/8 UP 5/8 ALBANY INTERNATIONAL WHICH MAKES EQUIPMENT USED BY PAPER PRODUCERS SHOULD RIDE ON THE TIDE OF ITS CUSTOMERS' IMPROVING FORTUNES HE SAYS EASING BACK MR HOEY STRESSES THAT HE IS EASING BACK INTO THE MARKET I DON'T SEE ANY GRAND REASON TO GO RACING IN MEANWHILE HE HAS CHOPPED HIS HOLDINGS OF STOCKS IN EMERGING MARKETS IN SOUTH AMERICA AND ASIA TO 27 FROM 74 LAST FALL AT THE END OF LAST YEAR IT JUST BECAME A BLOWOFF IN THOSE MARKETS HE SAYS PORTFOLIO MANAGERS WERE FROTHING AT THE MOUTH BROKERS HE SAYS WERE PUSHING PERUVIAN STOCKS COLUMBIAN STOCKS TURKISH STOCKS THEY HADN'T GOTTEN TO MARS OR VENUS YET BUT I KNEW IT WAS COMING MR HOEY SAYS HE RUSHED TO LIGHTEN UP AFTER READING A BROKERAGE REPORT IN DECEMBER TOUTING SHARES IN THAILAND'S TELEPHONE COMPANY THE ANALYST MR HOEY SAYS HE DOESN'T REMEMBER WHO IT WAS SAID THE STOCK THEN AT 105 WAS WORTH ONLY 85 BUT A BUYING FRENZY WOULD PROBABLY PUSH IT TO 150 THAT IS FULL AND COMPLETE CAPITULATION TO THE BIGGERFOOL THEORY SAYS MR HOEY I DON'T WANT TO BE THE BIGGER FOOL AFTER A SMASHING SUCCESS LAST YEAR STOCKS IN EMERGING MARKETS HAVE GENERALLY BEEN WEAK THIS YEAR MR HOEY SAID THAT WHEN HE SOLD SHARES IN DECEMBER AND JANUARY HE WAS STRUCK BY HOW DIFFICULT THE STOCKS WERE TO SELL EVEN ON GOOD DAYS JOHN D ROGERS PRESIDENT OF ARIEL CAPITAL MANAGEMENT IN CHICAGO SAYS HE HASN'T CHANGED TACTICS MUCH THIS YEAR BARGAINPRICED STOCKS ARE HARD TO FIND HE SAYS THE CORRECTION HASN'T BEEN ENOUGH OF A DROP TO FIND THINGS TO ADD TO OUR BUY LIST YET HE HAS HOWEVER PADDED POSITIONS IN MBIA THE MUNICIPALBOND INSURER AND DUFF & PHELPS THE MONEYMANAGEMENT AND BONDRATING FIRM BOTH ARE HURT BY RISING INTEREST RATES BUT INVESTORS HE FEELS HAVE PUNISHED THEM EXCESSIVELY AT THE SAME TIME MR ROGERS HAS SOLD SOME SHARES IN T ROWE PRICE ASSOCIATES THE MUTUALFUND MANAGEMENT COMPANY BELIEVING THE STOCK HAD GOTTEN A LITTLE AHEAD OF ITSELF IF THE CORRECTION GOES DEEPER WHICH MR ROGERS THINKS IT WILL HE DOESN'T WANT TO BE OVEREXPOSED TO THE MUTUALFUND BUSINESS MR ROGERS EXPECTS THE DECLINE WILL BRING THE DOW INDUSTRIALS DOWN TO THE NEIGHBORHOOD OF 3000 THE HIGH ON JAN 31 WAS 397836 YESTERDAY'S CLOSE WAS 376235 OFF 1238 MOST VULNERABLE HE BELIEVES ARE HIGHFLYING CONCEPT STOCK RESTAURANT CHAINS SUCH AS BOSTON CHICKEN ONE REASON MR ROGERS EXPECTS A STIFF CORRECTION IS THAT STOCK VALUATIONS WERE SO HIGH ALL LAST YEAR ANOTHER IS THE MISERABLE ACTION OF THE UTILITIES BEFORE THE CORRECTION RUNS ITS COURSE HE THINKS BARGAINS WON'T BE SO HARD TO FIND 9403290052 940214 PRICING HEALTH CARE COOPER PLAN CLINTON LITE BY MICHAEL TANNER REP JIM COOPER IS THE LATEST DARLING OF HEALTH CARE REFORM ACCORDING TO MUCH OF WASHINGTON THE BUSINESS ROUNDTABLE ENDORSED MUCH OF HIS PLAN THE NATION'S GOVERNORS ARE REPORTED LEANING HIS WAY EVEN ROSS PEROT INVITED HIM TO LUNCH BUT WHILE THE DESPERATE SEARCH FOR AN ALTERNATIVE TO PRESIDENT CLINTON'S HEALTH REFORM PLAN IS UNDERSTANDABLE EVERYONE SHOULD THINK TWICE BEFORE EMBRACING MR COOPER'S PROPOSAL CLINTON HEAVY MAY BE TERRIBLE BUT CLINTON LITE IS NOT A WHOLE LOT BETTER REP COOPER'S BILL OWES ITS POPULARITY TO THE ABSENCE OF MANY OF THE CLINTON PLAN'S WORST FEATURES EMPLOYER MANDATES PRICE CONTROLS MANDATORY PURCHASING ALLIANCES ETC IT EVEN AVOIDS THE INDIVIDUAL MANDATE POPULAR IN SOME CONSERVATIVE REFORMS HOWEVER A CLOSER LOOK AT REP COOPER'S PROPOSAL REVEALS ITS OWN LITANY OF HORRORS LIKE ITS CLINTON PROGENITOR THE COOPER PLAN IS BASED ON THE UNTESTED CONCEPT OF MANAGED COMPETITION AS ALAIN ENTHOVEN ONE OF THE LEADING PROPONENTS OF MANAGED COMPETITION ADMITS MANAGED COMPETITION IS NOT A FREE MARKET SYSTEM HE IS CERTAINLY CORRECT ABOUT THAT IT IS POSSIBLE TO HAVE EITHER MANAGED HEALTH CARE OR TO HAVE OPEN COMPETITION IN HEALTH CARE SERVICES IT IS NOT POSSIBLE TO HAVE BOTH ADVOCATES OF MANAGED COMPETITION INCLUDING BOTH MR CLINTON AND MR COOPER WANT GOVERNMENT REGULATION TO SUBSTITUTE FOR MARKET PROCESSES THEY LACK CONFIDENCE IN THE ABILITY OF HEALTH CARE CONSUMERS TO MAKE THEIR OWN DECISIONS EVEN MORE THAN THE CLINTON PLAN REP COOPER'S BILL IS DESIGNED TO FUNNEL AMERICANS INTO HEALTH MAINTENANCE ORGANIZATIONS HE ACCOMPLISHES THIS BY LIMITING THE TAX DEDUCTIBILITY OF EMPLOYERPROVIDED INSURANCE TO THE LOWESTCOST PLAN AVAILABLE REP COOPER AND OTHER ADVOCATES OF MANAGED COMPETITION HAVE A TREMENDOUS FAITH IN THE ABILITY OF MANAGED CARE TO CONTROL HEALTH CARE COSTS HOWEVER A 1992 REPORT BY A FOSTER HIGGINS CO INDICATED THAT HALF OF EMPLOYERS WHO SWITCHED FROM NONMANAGED CARE PLANS TO HMOS SAID THEIR HMO RATES WERE AS HIGH OR HIGHER THAN THEIR PREVIOUS RATES LIKEWISE A CONGRESSIONAL BUDGET OFFICE REPORT FOUND THAT SHIFTING MEDICARE PATIENTS TO HMOS HAD LITTLE OR NO EFFECT ON HOSPITAL USE AND COSTS IN ADDITION A RECENT RAND CORP STUDY INDICATES THAT MANAGED CARE PROVIDERS WERE AS LIKELY AS FEEFORSERVICE PROVIDERS TO PERFORM UNNECESSARY PROCEDURES BY PUSHING AMERICANS INTO MANAGED CARE THE COOPER BILL HOLDS THE POTENTIAL TO SEVERELY DISRUPT THE TRADITIONAL DOCTORPATIENT RELATIONSHIP MANAGED COMPETITION CHANGES INSURERS IN MR ENTHOVEN'S WORDS FROM FINANCIAL INTERMEDIARIES WITH EXPERTISE IN UNDERWRITING RISKS INTO HEALTH CARE DELIVERY SYSTEMS ORGANIZING MANAGING AND PURCHASING MEDICAL CARE IN SHORT ADVOCATES OF MANAGED COMPETITION BELIEVE PHYSICIANS SHOULD BE RESPONSIBLE TO INSURERS RATHER THAN TO THE PATIENT THUS THE PATIENT'S CHOICE OF PHYSICIAN SHOULD BE LIMITED TO GIVE THE INSURER INCREASED BARGAINING POWER WITH THE DOCTOR AND INSURERS MUST HAVE INCREASING CONTROL OVER PHYSICIANS' CHOICE OF TREATMENT SO THAT INSURERS CAN APPLY QUALITY ASSURANCE OR REVIEW OF APPROPRIATENESS MANAGED CARE PLANS ARE NOTORIOUS FOR SECONDGUESSING PHYSICIANS AND LIMITING ACCESS TO SOME TYPES OF TREATMENT AS SWISS MEDICAL PHILOSOPHER ERNEST TRUFFER HAS NOTED THE INCREASING INTERJECTION OF THIRD PARTIES BETWEEN DOCTOR AND PATIENT AMOUNTS TO A REJECTION OF THE MEDICAL ETHIC WHICH IS TO CARE FOR A PATIENT ACCORDING TO THE LATTER'S SPECIFIC MEDICAL REQUIREMENTS IN FAVOR OF A VETERINARY ETHIC WHICH CONSISTS IN CARING FOR THE SICK ANIMAL NOT IN ACCORDANCE WITH ITS SPECIFIC MEDICAL NEEDS BUT ACCORDING TO THE REQUIREMENTS OF ITS MASTER AND OWNER THE PERSON RESPONSIBLE FOR MEETING ANY COSTS INCURRED A SECOND MAJOR PROBLEM WITH THE COOPER PLAN IS ITS REQUIREMENT THAT INSURERS MUST ACCEPT ALL APPLICANTS REGARDLESS OF WHETHER THEY ARE IN PERFECT HEALTH OR ON THEIR DEATH BEDS THAT INCLUDES THOSE WITH ACTIVE ILLNESSES SUCH AS CANCER OR AIDS THE GOAL FOR SUCH A REQUIREMENT KNOWN AS GUARANTEED ISSUE IS TO INCREASE ACCESS TO INSURANCE FOR INDIVIDUALS WITH PREEXISTING MEDICAL CONDITIONS BUT AT WHAT COST STUDIES INDICATE THAT WHILE EMPLOYERS WITH HIGHRISK EMPLOYEES WOULD CERTAINLY NOTICE IMPROVED ACCESS TO COVERAGE UNDER PROPOSED INSURANCE REFORMS OVERALL PREMIUMS COULD INCREASE SUBSTANTIALLY A STUDY BY THE AMERICAN SOCIETY OF ACTUARIES FOUND THAT CLAIMS COSTS OF GUARANTEEDISSUE POLICIES AVERAGED 38 HIGHER THIS CONFIRMS EARLIER STUDIES BY COMMUNITY MUTUAL INSURANCE OF OHIO AND TILLINGHAST CORP THAT SHOWED PREMIUMS INCREASING BY 25 TO 35 UNDER GUARANTEED ISSUE EVEN THE LIBERAL ADVOCACY GROUP FAMILIES USA FOUNDATION ESTIMATES THAT 50 OF SMALL GROUPS WOULD EXPERIENCE A RATE INCREASE IF GUARANTEED ISSUE IS ADOPTED THE NET RESULT WOULD BE TO FORCE MANY SMALL BUSINESSES TO DROP THEIR CURRENT INSURANCE COVERAGE WHILE SOME CURRENTLY UNINSURED WORKERS WOULD MOVE INTO THE INSURANCE MARKET OTHERS WHO NOW HAVE INSURANCE WOULD BE FORCED OUT THUS THE COOPER BILL COULD ACTUALLY INCREASE THE NUMBER OF UNINSURED THESE PROBLEMS ARE COMPOUNDED BY THE ABILITY OF PEOPLE TO GAME THE SYSTEM THE REASON THAT HEALTHY PEOPLE PURCHASE HEALTH INSURANCE IS THE FEAR THAT THEY MAY LACK SUCH INSURANCE IF THEY BECOME SICK HOWEVER IF HEALTH INSURANCE BECOMES AVAILABLE REGARDLESS OF HEALTH STATUS MUCH OF THE INCENTIVE TO PAY FOR INSURANCE WHILE HEALTHY IS REMOVED SINCE THE COOPER BILL DOES NOT REQUIRE PEOPLE TO PURCHASE INSURANCE IT WOULD BECOME A RATIONAL CHOICE TO DO WITHOUT HEALTH INSURANCE UNTIL THE NEED ARISES AUTOMOBILE INSURANCE PROVIDES A GOOD ANALOGY IF IT WERE POSSIBLE TO PURCHASE AUTO INSURANCE AFTER AN ACCIDENT OCCURRED WOULD PEOPLE BE LIKELY TO PURCHASE INSURANCE BEFORE THE ACCIDENT REP COOPER WOULD ALSO REQUIRE MODIFIED COMMUNITY RATING OF INSURANCE PREMIUMS INSURERS WOULD BE PROHIBITED FROM BASING PREMIUMS ON AN INDIVIDUAL'S HEALTH HEALTHY PEOPLE AND SICK PEOPLE WOULD PAY THE SAME FOR INSURANCE BUT INSURANCE IS A BUSINESS OF RISK ALLOCATION IN WHICH THE INSURER RECEIVES PAYMENT IN EXCHANGE FOR AGREEING TO COVER THE EXPENSE OF CERTAIN RISKS THE COST AND SCOPE OF COVERAGE IS DETERMINED BY MORBIDITY/MORTALITY STATISTICAL ANALYSIS TO THE DEGREE THAT INSURERS ARE PREVENTED FROM BASING THEIR CONTRACTS ON SUCH ACTUARIAL VALUES OTHER POLICYHOLDERS WILL BE FORCED TO ABSORB THE ADDITIONAL COSTS THUS IN ORDER TO PROVIDE COVERAGE FOR A PERSON WITH AIDS A PERSON WITHOUT AIDS MUST PAY A HIGHER PREMIUM MOREOVER THE ADDITIONAL COSTS ARE HIGHLY REGRESSIVE FORCING THE HIGHEST MARGINAL COSTS ON THOSE LEAST ABLE TO AFFORD THE INCREASE FOR EXAMPLE IF COMMUNITY RATING CAUSES THE PREMIUMS FOR A FAMILY POLICY TO INCREASE BY 1000 THAT'S A 5 SURCHARGE FOR A FAMILY EARNING ONLY 20000 A YEAR BUT ONLY A 1 SURCHARGE FOR A FAMILY EARNING 100000 WE SHOULD ALSO RECOGNIZE THAT COMMUNITY RATING RELIEVES INDIVIDUALS OF THE RESPONSIBILITY FOR UNHEALTHY LIFESTYLES THERE IS NO QUESTION THAT INDIVIDUALS WHO SMOKE DRINK USE DRUGS PRACTICE UNSAFE SEX HAVE POOR DIETS AND FAIL TO EXERCISE HAVE FAR HIGHER HEALTH COSTS THAN INDIVIDUALS WITH HEALTHY LIFESTYLES IN FACT THE TOP 10 CAUSES OF DEATH IN THE US ARE ALL LIFESTYLE RELATED BY SPREADING THE COST OVER THE ENTIRE POPULATION COMMUNITY RATING AND GUARANTEED ISSUE SOCIALIZE THE COSTS IN THE TRUEST SENSE OF THE WORD UNLIKE PRESIDENT CLINTON'S BILL REP COOPER'S DOES NOT SPELL OUT THE SERVICES TO BE COVERED UNDER THE MINIMUM STANDARD BENEFITS PACKAGE LEAVING THAT TASK UP TO AN INDEPENDENT COMMISSION THIS IS APPARENTLY AN ATTEMPT TO INSULATE DECISIONS ON WHAT BENEFITS TO INCLUDE FROM POLITICAL PRESSURE BUT BASED ON HISTORY AND HUMAN NATURE INCLUSION IN THE MANDATED BENEFITS PACKAGE IS MUCH MORE LIKELY TO BE BASED ON THE RELATIVE LOBBYING STRENGTH OF VARIOUS PROVIDERS THAN ON A RATIONAL VIEW OF MEDICAL NECESSITY WHATEVER BENEFITS ARE MANDATED WILL INCREASE THE COST OF INSURANCE AND CONSUMERS WILL BE DEPRIVED OF THE ABILITY TO MAKE INDIVIDUAL CHOICES REGARDING THE BENEFITS THEY WISH TO PURCHASE ULTIMATELY THE COOPER BILL LIKE THE CLINTON PLAN IS BASED ON THE MISTAKEN BELIEF THAT GOVERNMENT CAN MANAGE A MARKETPLACE BETTER THAN CONSUMERS THEMSELVES THE TALK ON CAPITOL HILL IS THAT HEALTH CARE REFORM WILL ULTIMATELY BE A COMPROMISE BETWEEN THE CLINTON AND COOPER BILLS A COMPROMISE BETWEEN A BAD PLAN AND A NOTQUITEASBAD PLAN CANNOT POSSIBLY BE GOOD FOR THE AMERICAN PEOPLE MR TANNER IS DIRECTOR OF HEALTH AND WELFARE STUDIES AT THE CATO INSTITUTE IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR PREESIXTING CONDITIONS AND THE COOPER BILL WSJ MARCH 11 1994 SEE RELATED LETTERS LETTERS TO THE EDITOR CAN WE GUARANTEE HEALTH INSURANCE WSJ MARCH 29 1994 9402140074 9403110087 YY94 MM03 9403280174 940328 FIRST FIDELITY ACQUISITION LAWRENCEVILLE NJ FIRST FIDELITY BANCORP SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF BANKVEST INC AND SUBSIDIARY FIRST PEOPLES NATIONAL BANK OF EDWARDSVILLE PA FOR 193 MILLION FIRST PEOPLES NATIONAL BANK HAS 100 MILLION IN ASSETS 83 MILLION IN DEPOSITS AND TWO OFFICES IN NORTHEASTERN PENNSYLVANIA FIRST FIDELITY HAS 338 BILLION IN ASSETS AND OPERATES IN NEW JERSEY PENNSYLVANIA NEW YORK AND CONNECTICUT AND IS ACQUIRING BALTIMORE BANCORP IN A STRATEGY TO EXPAND FROM MARYLAND TO MASSACHUSETTS 9403280173 940328 SWISS PRODUCER IMPORT PRICES BERN SWITZERLAND THE NATION'S INDEX OF PRODUCER AND IMPORT PRICES FELL 04 IN FEBRUARY FROM A YEAR EARLIER BUT ROSE 01 FROM JANUARY THE FEDERAL STATISTICS OFFICE SAID IN JANUARY THE INDEX HAD DECLINED 05 YEARTOYEAR AND DECREASED 02 MONTHTOMONTH IN FEBRUARY OF LAST YEAR THE INDEX EDGED UP 02 YEARTOYEAR AND WAS UNCHANGED MONTHTOMONTH 9403280172 940328 MARKETING & MEDIA ADVERTISING TROPICANA IS TRYING TO CULTIVATE A GLOBAL TASTE FOR ORANGE JUICE BY YUMIKO ONO TROPICANA PRODUCTS INC DREAMS OF THE DAY THE WHOLE WORLD WAKES UP TO ITS ORANGE JUICE THE BRADENTON FLA UNIT OF SEAGRAM CO HAS AGGRESSIVELY ENTERED A DOZEN FOREIGN MARKETS IN RECENT YEARS PITCHING ITS PRODUCT IN A GLOBAL ADVERTISING CAMPAIGN FROM SWEDEN TO THE UNITED KINGDOM TO TAIWAN BUT CONVERTING THE WORLD TO A MORNING GLASS OF ORANGE JUICE WON'T BE EASY IN MOST COUNTRIES ORANGE JUICE IS AN OCCASIONAL DRINK FOR ANY TIME OF DAY NOT PART OF THE DAILY MORNING ROUTINE THE JAPANESE FOR EXAMPLE DRINK ONLY A 10TH THE AMOUNT OF ORANGE JUICE AMERICANS CONSUME AND ALTHOUGH TROPICANA PROMISES HIGHER QUALITY THAN MOST LOCAL BRANDS EXPORTING THE JUICE CAN DOUBLE OR TRIPLE THE PRICE STILL TROPICANA IS OPTIMISTIC ESPECIALLY WITH THE INTERNATIONAL EXPERIENCE OF ITS PARENT SEAGRAM IT'S BETTING THAT THE QUALITY OF ITS PRODUCT WHICH IT TOUTS AS CLOSEST TO THE REAL THING WILL HAVE UNIVERSAL APPEAL TROPICANA SPENDS 43 OF ITS WORLDWIDE AD BUDGET ON ITS PURE PREMIUM PRODUCT OUTSIDE THE US ITS ADS THOUGH TAILORED A BIT TO EACH MARKET ALL STRESS THE SUPERIOR NEARLY FRESHSQUEEZED TASTE OF ITS JUICE OVER LOCAL BRANDS THAT ARE OFTEN RECONSTITUTED FROM CONCENTRATES THE JUICE IS SO FRESH THAT IT'S REFRIGERATED BOASTS A TROPICANA AD IN THE UK NOT STORED AT ROOM TEMPERATURE LIKE MOST LOCAL FRUIT JUICES THE ORANGES ARE SOFT SQUEEZED AND DON'T INCLUDE THE BITTER RIND DECLARES AN AD IN JAPAN COME AND TRY THE ORANGE JUICE THAT INSISTS ON PURITY SAYS A NARRATOR IN TAIWAN WHERE JUICES LOADED WITH SUGAR ARE THE NORM LIKE US ADS THE FOREIGN ADS SHOW A REDANDWHITE STRAW BEING POKED INTO AN ORANGE OCCASIONALLY THE COMPANY CREATES A SPECIAL AD TO APPEAL TO A CERTAIN CULTURE WHEN TROPICANA INTRODUCED ITS ORANGE JUICE IN JAPAN IT AIRED A COMMERCIAL SHOWING AN AMERICAN FAMILY CHEERFULLY SIPPING ORANGE JUICE IN TUNE TO OH WHAT A BEAUTIFUL MORNING WHILE A JAPANESE NARRATOR ENTHUSIASTICALLY CITES TROPICANA AS THE MOST CONSUMED ORANGE JUICE IN THE US IF THIS WAS THE MOST POPULAR JUICE IN THE US THAT GAVE IT GREAT CREDENTIALS SAYS KERRY RUBIE GROUP PRESIDENT OF EUROPE MIDDLE EAST AND LATIN AMERICA FOR LEO BURNETT USA WHICH ADVERTISES TROPICANA JUICES IN THE US AND OVERSEAS MARKETS EVERYONE RECOGNIZED THAT THE GOLD STANDARD OF ORANGE JUICE WAS FRESHSQUEEZED HE ADDS THE COMMERCIALS ARE ALWAYS BASED ON THAT SAME STRATEGIC PRINCIPLE WE'RE REINFORCING THAT IDEA ALTHOUGH THE FOREIGN MARKETS ARE STILL TINY ABOUT 15 OF TROPICANA'S ESTIMATED 13 BILLION US SALES THE COMPANY SAYS IT EXPECTS TO TURN A PROFIT IN ITS INTERNATIONAL OPERATIONS NEXT YEAR INCLUDING INVESTMENT SPENDING IT'S ONE OF THE BEVERAGES WHERE YOU HAVE A TRULY GLOBAL MARKET SAYS MYRON ROEDER TROPICANA'S PRESIDENT INTERNATIONAL GROUP AND GLOBAL MARKETING TROPICANA'S APPROACH OF POSITIONING ITSELF SIMILARLY IN DIFFERENT MARKETS IS MUCH LIKE THE STRATEGIES USED BY OTHER GLOBAL COMPANIES INCLUDING COCACOLA CO AND PROCTER & GAMBLE CO BUT SOME CRITICS SAY THE TACTIC MAY BE A LONG SHOT FOR TROPICANA ORANGE JUICE STARTS OUT BY NOT MEANING THE SAME THING EVERYWHERE AND THEREFORE MAY REQUIRE VERY DIFFERENT MESSAGES SAYS STEPHEN A GREYSER A PROFESSOR OF CONSUMER MARKETING AT HARVARD UNIVERSITY THE STRATEGY MAY WORK FOR AIRLINES TARGETING INTERNATIONAL BUSINESS TRAVELERS HE SAYS BUT FOR ORANGE JUICE CANDIDLY I DON'T SEE IT RIVALS LIKE COCACOLA FOODS WHICH SELLS THE MINUTE MAID BRAND IN THE US AND CANADA AREN'T KEEN TO FOLLOW TROPICANA'S FOOTSTEPS WE'RE NOT SO HUNG UP ON MARKETING ORANGE JUICE SAYS JERRY BELL DIRECTOR OF INTERNATIONAL DEVELOPMENT FOR COCACOLA FOODS INSTEAD THE COMPANY IS CONCENTRATING ON MARKETING ORANGE DRINKS WHICH HAVE A MUCH BIGGER MARKET ABROAD THAN PURE JUICES HE SAYS SO FAR TROPICANA'S FOREIGN VENTURES HAVE PRODUCED MIXED RESULTS TROPICANA SAYS IT HAS MADE HEADWAY IN THE UK WHERE THE COMPANY CONVINCED CONSUMERS THAT THE LOCAL JUICES MADE FROM CONCENTRATE AND PACKAGED IN PLASTIC SHELFSTABLE CARTONS WERE INFERIOR TO TROPICANA'S CHILLED NOTFROMCONCENTRATE VERSIONS BUT JAPANESE CONSUMERS EVEN THOUGH BRAND CONSCIOUS ARE PROVING TO BE TOUGHER TO PERSUADE AFTER JAPAN'S FRUIT JUICE MARKET LIBERALIZED A FEW YEARS AGO JAPANESE CONSUMERS ARE CERTAINLY GUZZLING A LOT MORE ORANGE JUICE BUT MOST PEOPLE DON'T CARE THAT MUCH ABOUT ITS TASTE YET RATHER THAN PAYING 380 FOR A 25OUNCE CARTON OF TROPICANA'S NOTFROMCONCENTRATE ORANGE JUICE MOST CONSUMERS ARE FLOCKING TO BUY THE STOREBRAND BRAZILIAN JUICES FROM CONCENTRATE WHICH ARE MORE SOUR BUT COST ABOUT HALF AS MUCH AS TROPICANA THE JAPANESE MARKET HASN'T DEVELOPED A BRANDBASED AWARENESS AND COMMITMENT THAT YOU'D HAVE IN THE US OR UK CONCEDES MR ROEDER TROPICANA ISN'T ABOUT TO GIVE UP THOUGH IT IS NOW FOCUSING ITS MARKETING EFFORTS IN JAPAN ON ITS OWN LESS EXPENSIVE VERSION OF JUICE FROM CONCENTRATE MR ROEDER SAYS TROPICANA WILL CONTINUE TO EXPAND AGGRESSIVELY IN OVERSEAS MARKETS WHILE GROWTH OF ALL FRUIT JUICE SALES IS 5 AT BEST IN THE MATURING US MARKET THE GROWTH RATE IS MORE THAN DOUBLE THE US IN OVERSEAS MARKETS MR ROEDER SAYS WE SEE TREMENDOUS POTENTIAL ACCOUNTS JM SMUCKER CO ORRVILLE OHIO TAPPED LEO BURNETT CO CHICAGO FOR ITS ESTIMATED 10 MILLION TO 15 MILLION ADVERTISING ACCOUNT AND DISMISSED ITS PREVIOUS AGENCY WYSE ADVERTISING CLEVELAND AFTER 35 YEARS WYSE CREATED THE SLOGAN WITH A NAME LIKE SMUCKER'S IT HAS TO BE GOOD INC MAGAZINE TAPPED ANDERSON & LEMBKE TO CREATE ADVERTISING BILLINGS ON THE NEW ACCOUNT COULDN'T BE DETERMINED 9403280171 940328 CENTEX BOARD REJECTS MFS HOSTILE OFFER TOTALING 161 MILLION SAN FRANCISCO THE BOARD OF CENTEX TELEMANAGEMENT INC UNANIMOUSLY REJECTED A HOSTILE 161 MILLION CASH BID FROM MFS COMMUNICATIONS CO OF OMAHA NEB AS INADEQUATE CENTEX SAID THE TELECOMMUNICATIONSMANAGEMENT CONSULTING COMPANY ALSO DISCLOSED THAT THIRD PARTIES HAVE OFFERED TO BUY CENTEX SINCE THE MFS BID A SPOKESMAN DECLINED TO NAME THESE OTHER BIDDERS OR WHETHER THE BIDS WERE HIGHER OR LOWER THAN THE ONE FROM MFS A FIBEROPTIC TELEPHONE SERVICE COMPANY TO PROTECT ITSELF FROM A HOSTILE TAKEOVER CENTEX EXTENDED A SHAREHOLDERRIGHTS PLAN AND RETAINED THE SERVICES OF ALEX BROWN & SONS INC AND GOLDMAN SACHS & CO TO EXPLORE ALTERNATIVES AVAILABLE TO MAXIMIZE SHAREHOLDER VALUE CENTEX SAID IN A STATEMENT CENTEX SAID IT REJECTED MFS'S 9ASHARE BID AFTER CAREFUL CONSIDERATION BECAUSE THE BID IS NOT IN THE BEST INTERESTS OF CENTEX AND ITS STOCKHOLDERS BUT THE BOARD'S REJECTION IS JUST A RECOMMENDATION TO SHAREHOLDERS WHO MAY TENDER THEIR SHARES IF THEY WISH CENTEX HAS ABOUT 179 MILLION SHARES OUTSTANDING MORE THAN 12 MILLION OF THOSE SHARES HAVE TRADED HANDS SINCE MFS LAUNCHED ITS BID MARCH 16 SO IT IS UNCLEAR WHO THE COMPANY'S LARGEST HOLDERS ARE JOSH HOWELL A SENIOR VICE PRESIDENT AT MFS SAID WE ARE CONFIDENT AFTER CENTEX WEIGHS THE ALTERNATIVES THEY WILL RECOGNIZE THAT A COMBINATION WITH US WILL MAXIMIZE VALUE FOR ALL PARTIES INVOLVED MFS HAS SAID THAT AQUIRING CENTEX WOULD BOLSTER THE SERVICES OF ITS INTELENET UNIT WHICH OPERATES IN 21 CITIES WHERE CENTEX ALSO OPERATES MFS PROVIDES FIBEROPTIC TRANSMISSION SERVICES TO ABOUT 800 BUSINESSES CENTEX HELPS FIRMS PICK AND MANAGE TELECOMMUNICATIONS EQUIPMENT AND SERVICES AND HAS 11000 CLIENTS SINCE MFS ANNOUNCED ITS BID CENTEX'S STOCK HAS MORE THAN DOUBLED CLOSING FRIDAY AT 1050 A SHARE UNCHANGED ON THE NASDAQ STOCK MARKET UP FROM ITS CLOSE OF 4875 ON MARCH 15 9403280170 940328 POWER PORK CORPORATIONS BEGIN TO TURN HOG BUSINESS INTO AN ASSEMBLY LINE LEAN UNIFORM PIGS POP OUT AND ARE ROBOTICALLY CUT INTO NEAT BRANDED CHOPS SHORT FERTILE LIFE OF A SOW BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL PRINCETON MO TAKING SHAPE IN THE SECLUDED HILLS OF NORTH CENTRAL MISSOURI IS A MULTIBILLIONDOLLAR FOOD REVOLUTION TECHNOPORK INSIDE BARN NO 5 IN A SPRAWLING COMPLEX OF BARRACKSLIKE BUILDINGS 1100 HOGS ARE BEING BRED TO A LEAN UNIFORMITY PELLETS RATTLE DOWN PLASTIC TUBES WHEN THEIR FEED GETS LOW A FAROFF COMPUTER CLOSES PLASTIC CURTAINS AS THE NIGHT GROWS CHILLY AND HEATERS WHIR INTO ACTION JUST WHEN THE BARN SEEMS A LITTLE RIPE A WHOOSH OF WATER FLUSHES AWAY MANURE A DOOR CRACKS OPEN AND SUDDENLY THE PIGS REALIZE THEY AREN'T ALONE A CHORUS OF GRUNTS AND IN UNISON THEY TURN TO FACE TWO MEN IN SPOTLESS BLUE JUMPSUITS THE HOGFARMER OUTFIT OF THE 21ST CENTURY WE'RE CHANGING THE BUSINESS WITH THESE GUYS SAYS DON SKADBURG ONE OF THE TWO MEN AND A VICE PRESIDENT OF PREMIUM STANDARD FARMS INC HIS SLEEK HOGS HAVE LOWER BODY FAT THAN THE AVERAGE AMERICAN ADULT HE GENTLY POKES THE RIBS OF A 235POUNDER FIVE DAYS TO SLAUGHTER HE FIGURES FACTORYLIKE OPERATIONS SUCH AS THIS ARE BRINGING TOGETHER TECHNOLOGY AND FINANCE TO CHANGE THE FACE OF THE PORK INDUSTRY LONG A MESSY SIDELINE FOR FAMILY FARMERS THE HOG BUSINESS IS ATTRACTING COMPANIES BACKED BY MONEY FROM BIGCITY BANKS AND WALL STREET THEY ARE BUILDING OPERATIONS CAPABLE OF PRODUCING HUNDREDS OF THOUSANDS OF HOGS A YEAR THE PRICE OF PORK PRODUCTS ON WHICH AMERICANS SPEND 26 BILLION ANNUALLY MAY DECLINE AS A RESULT AND THE POWER STRUCTURE OF THE FARM BELT MAY BE UPENDED IN UTAH'S HIGH DESERT ONE VENTURE PLANS TO RAISE AND SLAUGHTER TWO MILLION HOGS ANNUALLY NORTH CAROLINA EXPECTS TO BECOME THE SECONDBIGGEST HOG PRODUCING STATE THIS YEAR AFTER IOWA THANKS TO CORPORATEOWNED HOGS BUT THE LONGSHRINKING RANKS OF FAMILY FARMERS IN TRADITIONAL HOG STATES LIKE IOWA AND MINNESOTA WHICH RESIST THE CORPORATE ENCROACHMENT MAY FACE A SHAKEOUT SOME ECONOMISTS SEE THE NUMBER OF HOG PRODUCERS PLUNGING BY HALF IN A DECADE THERE WAS A TIME WHEN PIGS WERE FREE TO BE PIGS LIVING OUTDOORS AND ROOTING GLEEFULLY THROUGH HARVESTED FIELDS BUT FARMERS HAVE GRADUALLY MOVED MOST HOGS INDOORS TO MAKE RAISING THEM MORE EFFICIENT AND FOR YEARS HAVE BRED THEM LEANER AND LEANER TO SUIT A MARKETPLACE OF HEALTHCONSCIOUS CONSUMERS IT SEEMS TO BE WORKING AMERICANS ARE EATING TWO MORE POUNDS OF PORK A YEAR THAN THEY DID IN 1990 AND ABOUT THAT MUCH LESS BEEF MOST FARMERS HAVE STAYED SMALL TWOTHIRDS OF PRODUCERS OWN FEWER THAN 100 HOGS EVEN THOUGH HOG FARMS SURVEYED BY IOWA STATE UNIVERSITY LAST YEAR GENERATED A 22 RETURN ON CAPITAL ON AVERAGE HOGS' VULNERABILITY TO DISEASE WAS ONE LIMITATION BUT TECHNOLOGY IS HELPING TO SOLVE THAT PROBLEM AND COMPANIES ARE JUMPING IN ABOUT 16 OF THE 95 MILLION HOGS SLAUGHTERED LAST YEAR WERE CONTROLLED BY CORPORATIONS EITHER GROWN BY THEM DIRECTLY OR RAISED BY FARMERS WORKING UNDER CONTRACT FOR WHAT AMOUNTS TO ROUGHLY 6 AN HOUR SOME ECONOMISTS PREDICT THAT WITHIN 10 YEARS COMPANIES WILL CONTROL BETWEEN ONETHIRD AND A MAJORITY OF THE NATION'S PIGS WE ARE ON THE CUSP OF A GREAT CHANGE IN AGRICULTURE SAYS ALAN BARKEMA A SENIOR ECONOMIST AT THE FEDERAL RESERVE BANK OF KANSAS CITY IT IS MOSTLY OUTSIDERS SEIZING THE OPPORTUNITY MANY GIANT MEATPACKERS SAY THEY ARE TOO BIG TO GO INTO FARMING IBP INC FOR EXAMPLE CAN KILL 60000 PIGS A DAY BUILDING THE FACILITIES TO GROW THAT MANY WOULD COST THE DAKOTA CITY NEB COMPANY BILLIONS THE NEWCOMERS HAVE THE ADVANTAGE OF STARTING FROM SCRATCH ARKANSAS'S TYSON FOODS INC ONE OF THE COMPANIES THAT EARLIER TRANSFORMED POULTRY INTO AN AUTOMATED CONCEPTIONTOCONSUMPTION BUSINESS IS TURNING TO PORK IT HAS SET THE AMBITIOUS GOAL OF CONTROLLING 10 OF THE US HOG SLAUGHTER IN FIVE YEARS SOME JUST WANT TO RAISE PIGS THE BASS BROTHERS OF TEXAS ARE COMPLETING A 17000SOW COMPLEX IN DALHART TEXAS NEW YORKBASED CONTINENTAL GRAIN CO IS STARTING A 20000SOW OPERATION IN MISSOURI ONE THING SUCH OPERATIONS MAY TEND TO DO IS DULL THE CYCLICAL NATURE OF HOG PRICES FARMERS TRIM HERDS WHEN LOW HOG PRICES OR COSTLY GRAIN DRAINS AWAY THEIR PROFITS THEN AS HOG OUTPUT EBBS PRICES GRADUALLY RECOVER AND SO DOES PRODUCTION BUT A FACTORY FARM MAY BE LESS LIKELY TO SLOW ITS COSTLY PRODUCTION LINE AND IN ANY CASE MANY CAN STILL PROFIT ON SLIMMER PRICES HERE IN PRINCETON POPULATION 1021 PREMIUM STANDARD FARMS IS THE MOST REMARKABLE THING TO EMERGE SINCE CALAMITY JANE THE CROSSDRESSING ARMY SCOUT WHO LOCALS SAY WAS BORN HERE IN 1852 THE BRAINS BEHIND THE CLOSELY HELD COMPANY ARE THEODORE GORDON A FORMER SECURITIES TRADER AND DENNIS W HARMS A FORMER LIVESTOCKFEED MANAGER OF A SOYBEAN PROCESSOR TOOLING ABOUT IN JEEP GRAND CHEROKEES THEY ARE BUILDING IN THE SURROUNDING COUNTIES ABOUT A DOZEN HOG COMPLEXES OF SEVERAL FARMS EACH HUNDREDS OF THEIR LOW METAL BUILDINGS ALREADY GLITTER FROM DISTANT HILLSIDES WHILE ELSEWHERE BULLDOZERS ARE LEVELING SITES AND GOUGING FOOTBALLFIELDSIZE MANURE PONDS FOR THE OUTPUT OF 80000 SOWS SO MANY GAWKERS CROWDED AROUND ONE CONSTRUCTION SITE WHERE RISES A TOWERING GRAY MILL THAT MASHES CORN SOYBEAN MEAL AND OTHER INGREDIENTS INTO MILLIONS OF POUNDS OF YELLOW PELLETS THAT THE COMPANY BUILT A LOOKOUT PARK TO KEEP THEM FROM HARM'S WAY AT HEADQUARTERS ONE DAY RECENTLY MARK MASON WAS MANNING THE CONTROL ROOM AND INVESTIGATING WHY AN ALARM HAD GONE OFF DURING THE NIGHT AT A COMPLEX NAMED BADGER A CHART APPEARED ON HIS SCREEN IT SHOWED THE TEMPERATURE IN ONE BUILDING HAD FALLEN FIVE DEGREES SOMEBODY PROBABLY LEFT A DOOR AJAR MR MASON SAID SCANNING A WEATHER REPORT THESE BARNS USE THE SAME CLIMATE CONTROLS FOUND IN SKYSCRAPERS SINCE BIGGER PIGS LIKE IT COOLER A COMPUTER LOWERS THE TEMPERATURE HALF A DEGREE PER DAY AS THEY AGE SENSORS MONITOR HUMIDITY AND WATER CONSUMPTION AND SOON WILL TRACK OXYGEN LEVELS THE COMPANY IS EVEN STRICTER ON GERMS TRUCKS ARE SCRUBBED DAILY PIGS THAT DIE UNEXPECTEDLY ARE GIVEN AUTOPSIES EMPLOYEES AND VISITORS SHOWER BEFORE ENTERING BARNS WASH YOUR HAIR TOO ORDERS MR SKADBURG THE VICE PRESIDENT HE HANDS A VISITOR A BLUE JUMPSUIT AND FRUIT OF THE LOOM UNDERWEAR THEN PADS NAKED ACROSS THE COLD TILE FLOOR TO A SHOWER STALL ONE THING MISSING ON THE PIG FARM OF THE FUTURE IS SEX THE BOARS DON'T RENDEZVOUS WITH SOWS BUT WITH SCENTED DUMMIES THE SOWS ARE ARTIFICIALLY INSEMINATED THEN THE FEMALES WAIT 454 OF THEM IN FOUR LONG ROWS OF METAL STALLS SO SMALL THEY CAN'T TURN AROUND FOR AN ULTRASOUND TEST ABOUT 40 DAYS LATER FROM THERE THE PREGNANT SOW IS ON A RIGID PRODUCTION SCHEDULE DAY 45 WALK 30 YARDS TO A STALL IN THE GESTATION BUILDING SHE GETS INJECTIONS AND SPECIAL RATIONS A TAG ON HER EAR EMITS A RADIO FREQUENCY SO SHE CAN BE TRACKED BY A COMPUTER WHICH UPDATES HER MEDICAL HISTORY DAY 112 WALK 30 YARDS TO THE DELIVERY BUILDING SHE IS SWABBED IN DISINFECTANT AND PUT IN A STALL DAY 115 GIVE BIRTH TO 10 OR 11 PIGLETS THEIR CANINE TEETH ARE CUT OFF TAILS ARE SNIPPED EARS ARE TATTOOED AND THE MALES ARE CASTRATED DAY 133 THE PIGLETS ARE TAKEN AWAY THEY ARE WEANED ABOUT A WEEK QUICKER THAN ON MANY FAMILY FARMS THAT GETS THEM AWAY FROM THEIR MOTHER BEFORE THEY LOSE THEIR THREEWEEK IMMUNITY TO HER GERMS AFTER ABOUT A WEEK RESPITE THE SOW IS BACK IN THE BREEDING ROOM SHE IS EXPECTED TO GENERATE 23 PIGS A YEAR FOR ABOUT THREE YEARS ROUGHLY HALF MORE THAN TYPICAL SOWS THEN SHE TOO IS SLAUGHTERED THE BABY PIGS NOW 12POUNDERS MOVE NEXT DOOR TO THE NURSERY THEY ARE DIVIDED BY SEX PUT IN GROUPS OF 10 AND ASSIGNED TO 5BY5 METAL PENS AT NINE WEEKS THEY WEIGH ABOUT 45 POUNDS AND ARE READY FOR A TRUCK RIDE TO A FINISHING BARN SCARFING DOWN A HIGHPOTENCY DIET THEY GROW AN AVERAGE 16 POUNDS A DAY UNTIL THEY HIT SLAUGHTER WEIGHT OF 245 POUNDS THE ELAPSED TIME SINCE BIRTH ABOUT 5 1/2 MONTHS IS SHORTER THAN THAT OF PIGS RAISED ON TRADITIONAL FARMS GROWING ISN'T ALL THESE SWINE ARE GOOD AT THE HERD WILL GENERATE ROUGHLY HALF A BILLION GALLONS OF WASTE A YEAR ABOUT ENOUGH TO FILL THE PENTAGON AS THEY MOVE ABOUT THEY STAMP IT THROUGH A SLATTED FLOOR INTO A PIT EVERY TWO HOURS WATER WASHES IT INTO A LAGOON FROM THERE IT IS PUMPED BY UNDERGROUND PIPES TO SURROUNDING PASTURES AND HAYFIELDS ANIMALWELFARE ADVOCATES SAY SUCH CONFINEMENT DRIVES PIGS CRAZY PREMIUM STANDARD REPLIES THAT ITS HOGS MUST BE COMFORTABLE SINCE ONLY ABOUT 1 DIE BEFORE IT WANTS THEM TO AND IT CLAIMS THEY ARE MEDICATED LESS THAN THOSE ON TYPICAL FAMILY FARMS BIGGER LITTERS FEWER DEATHS FASTER GROWTH IT ALL ADDS UP ONE PREMIUM STANDARD SOW CAN YIELD ABOUT 3000 POUNDS OF LEAN PORK A YEAR SOME EXPERTS SUGGEST THAT A MEGAFARM CAN EASILY MAKE A HOG FOR 10 LESS THAN THE TYPICAL FAMILY FARM BECAUSE PREMIUM STANDARD'S HOGS ARE SO UNIFORM A 50 MILLION SLAUGHTERHOUSE IT IS BUILDING WILL BE MECHANIZED LIKE NEVER BEFORE LOINS WILL BE PULLED OFF WITH ROBOTICS DISASSEMBLING HEADS A TASK REQUIRING A DOZEN KNIFEWIELDING WORKERS WILL BE AUTOMATED TATTOOED EARS ARE GOOD FOR PET TREATS UNMARKED ONES ARE A SOUTHERN DELICACY CONSIDER TYSON FOODS' PACKING PLANT 100 MILES AWAY IN MARSHALL MO WHICH IT BOUGHT IN 1992 AND IS REVAMPING PIGS STILL DIE THE SAME WAY A SHRIEKING HOG SLIPS SPLAYLEGGED DOWN A METAL CHUTE INTO A DARK ROOM IT IS STUNNED WITH AN ELECTRIC PROD ITS NECK IS SLASHED AND THEN IT IS HUNG BY THE HIND LEGS HIGH IN THE AIR TO BLEED ALONG A LINE OF WIGGLING HOGS BUT TYSON IS MAKING CHANGES A WORKER HOLDS A RULER TO THE RIB CAGE OF EACH CARCASS THAT SWINGS BY AND THE FAT DEPTH IS WRITTEN IN LARGE NUMBERS ON THE SIDE OF THE ANIMAL EVENTUALLY TYSON PLANS TO USE BAR CODES TO TRACK THE HOGS FARMERS WHO SEND LEANER ONES GET MORE FOR THEM TYSON CONTRACTS WITH COMPANYTRAINED FARMERS TO RAISE ITS HOGS USING COMPANY BLUEPRINTS AND COMPANY RATIONS COPYING A PRACTICE COMMON IN THE BROILER INDUSTRY THE PLANT'S BIG INNOVATION IS A CAVERNOUS ROOM WHERE BRILLIANT LIGHT BOUNCES OFF STAINLESS STEEL COMPUTERCONTROLLED SLICING MACHINES ARE TURNING NEAT STACKS OF LOINS INTO FIVEOUNCE CHOPS THEY DROP ON A CONVEYOR BELT RIDE ALONG TO ANOTHER MACHINE AND GET SORTED INTO FOURPOUND PLASTIC BAGS LABELED TYSON TRIM THE ORANGE TYSON BRAND BEGAN SHOWING UP ON FRESH PORK CHOPS A FEW MONTHS AGO IN WALMART STORES INC'S SAM'S CLUB WAREHOUSE STORES TYSON PLANS TO TEST IT IN SUPERMARKETS IN INDIANA AND ELSEWHERE PORK'S POSSIBILITIES ARE ONLY BEGINNING TO BE EXPLORED THE TYSON PLANT IS BEING RIGGED TO MAKE PRECOOKED MICROWAVABLE BREADED STUFFED AND SPICED PORK FLAVORS RANGE FROM JAMAICAN JERK TO TERIYAKI SCRAPS ARE TURNED INTO SPORTSBAR APPETIZERS TYSON IS INTRODUCING THE SLUGGER CARVED FROM THE SHANK OF THE HAM BONE TO LOOK LIKE A FLAT DRUMSTICK TYSON WAS PLANNING TO SELL IT IN BALLPARKS BUT FEARED THAT FANS WOULD THROW THE BONES AT THE VISITING TEAM MOST BIG MEATPACKERS HAVE AVOIDED BRANDS IN PART BECAUSE THEY DON'T HAVE ENOUGH CONTROL OVER THEIR MEAT THEY BUY FROM THOUSANDS OF FARMERS WHO RAISE DIFFERENT BREEDS IN DIFFERENT WAYS THE HOGS VARY SO MUCH THEY HAVE TO BE CUT UP MOSTLY BY HAND WHICH IS DANGEROUS WORK MEATPACKERS GENERALLY STOP CUTTING WHEN THEY GET THE CARCASS DOWN TO SIX BIG PIECES THAT HAS LEFT CUSTOMERS AND PORK'S REPUTATION AT THE MERCY OF THE BUTCHER IN THE BACK OF THE LOCAL GROCER SHOPPERS PRIZE THE WIDE CENTER OF THE LOIN BUT STORES DON'T RESTOCK THEIR MEAT CASES UNTIL THE RUNTY PIECES ARE GONE WITH TYSON'S SYSTEM ALL THE PACKAGES ARE THE SAME AND THE FOOD STORES SAVE ON LABOR THERE ARE SIGNS TYSON IS PUTTING PRESSURE ON THE PORK INDUSTRY IN DECEMBER CONAGRA INC CLOSED A PORK PLANT IN ST JOSEPH MO 130 MILES AWAY UNDER A PROJECT LED BY JOHN TYSON 40YEAROLD SON OF CHAIRMAN DON TYSON 63 THE COMPANY IS WELL ON THE WAY TO CONTROLLING 150000 SOWS AND IS WIDELY SEEN BUYING OR BUILDING MORE SLAUGHTERHOUSES PORK IS WHERE POULTRY WAS IN THE 1970S SAYS THE YOUNGER MR TYSON NOW THE TRAIN IS LEAVING THE STATION 9403280169 940328 SKODA PILSEN ACQUIRES UTE A MANUFACTURER IN EASTERN GERMANY SPECIAL TO THE WALL STREET JOURNAL FRANKFURT SKODA PILSEN AS A GIANT OF CZECH INDUSTRY BECAME THE FIRST COMPANY FROM THE FORMER EASTERN BLOC TO MAKE A 100 ACQUISITION OF AN EASTERN GERMAN COMPANY GERMANY'S TREUHANDANSTALT SAID THE CZECH COMPANY SIGNED A CONTRACT WITH THE TREUHAND PRIVATIZATION AGENCY TO BUY UMFORMTECHNIK ERFURT GMBH A LARGE MAKER OF HYDRAULIC PRESSES FOR AUTOMOBILEBODY PARTS THE FINAL HURDLE FOR THE VENTURE'S FINANCING CAME LATE THURSDAY WHEN CZECH PREMIER VACLAV KLAUS TELEPHONED THE GOVERNOR OF THE STATE OF THURINGIA WHERE UTE IS BASED A TREUHAND SPOKESMAN SAID PREMIER KLAUS PROMISED THE CZECH REPUBLIC WOULD PROVIDE FINANCIAL GUARANTEES FOR A LOAN TO SKODA FROM A CONSORTIUM OF BANKS THE SPOKESMAN SAID BEFORE PROVIDING THE FINANCING THE BANK CONSORTIUM DEMANDED WRITTEN BACKING FOR THE LOAN MR KLAUS SAID A LETTER WITH WRITTEN GUARANTEES IS UNDER WAY THE SPOKESMAN SAID OTHER TERMS WEREN'T DISCLOSED OFFICIALS AT UTE'S HEADQUARTERS IN THE EASTERN GERMAN CITY OF ERFURT WEREN'T AVAILABLE FOR COMMENT DURING THE EAST GERMAN COMMUNIST ERA UTE RANKED AS ONE OF THE NATION'S MAJOR HARDCURRENCY EARNERS ITS CUSTOMERS HAVE INCLUDED MANY OF WESTERN EUROPE'S MAJOR AUTO MAKERS SKODA PILSEN A HEAVYENGINEERING GROUP AGREED TO INVEST AT UTE'S ERFURT PLANTS AND SAVE AT LEAST 1000 OF THE EXISTING 1645 JOBS THE TREUHAND SAID SKODA PILSEN ISN'T RELATED TO THE SKODA AUTOMOBILOVA AS THE CZECH AUTO MAKER THAT IS A UNIT OF GERMANY'S VOLKSWAGEN AG UTE ALREADY HAS SHED THOUSANDS OF WORKERS AND SPUN OFF NONCORE OPERATIONS AS EARLY AS 1991 IT DIMINISHED ITS DEPENDENCE ON MARKETS IN THE FORMER SOVIET UNION BY ACQUIRING A 51 STAKE IN AN ESSENBASED JOINT MARKETING COMPANY CALLED KRUPP UMFORMTECHNIK GMBH GIVING UTE A BROADER FOOTHOLD IN WESTERN MARKETS 9403280168 940328 COMPANIES HAGGLE FOR BEST VALUE WHEN BOOKING POSH MEETING SITES BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL FOR ITS ANNUAL SENIOR MANAGERS' MEETING CASINO OPERATOR AZTAR CORP WANTED A SITE THAT WOULD BE BOTH COSTEFFICIENT AND ENJOYABLE SO THE COMPANY SIGNED ITS EXECUTIVES UP FOR A FIVEDAY BAHAMIAN CRUISE ON ROYAL CARIBBEAN CRUISE LINE'S NORDIC EMPRESS EXTRAVAGANT HARDLY THE JAUNT INCLUDING EVERYTHING FROM AIR FARE TO AN AWARDS BANQUET COST ABOUT 1035 PER PERSON MAKING IT LESS EXPENSIVE THAN MOST OF THE OTHER MEETINGS THE COMPANY HELD IN HOTELS SITUATED ON DRY LAND THESE DAYS OSTENTATION IS LARGELY OUT OF FASHION AS FIRMS SEEK TO SHUN THE IMAGE OF CORPORATE MEETINGS AS BOONDOGGLES EVERYONE WANTS TO GO TO MONTE CARLO SAYS AZTAR CHAIRMAN PAUL RUBELI I TELL THEM THAT WHEN OUR STOCK HITS 30 A SHARE THEN WE'LL GO AZTAR HAS BEEN TRADING AT ABOUT 7 A SHARE AS AZTAR'S LOWCOST CRUISE INDICATES COMPANIES ARE SEARCHING FOR LESS COSTLY WAYS TO MAKE PARTICIPANTS FEEL PAMPERED WHILE RECENT SURVEYS INDICATE THAT COMPANIES ARE HOLDING ABOUT AS MANY MEETINGS AS THEY DID A FEW YEARS AGO THEY'RE STICKING CLOSER TO HOME AND HAGGLING OVER COSTS AND SERVICES HOTEL AND RESORT OPERATORS HAVE HAD TO ADJUST WE'VE SEEN MEETINGS SHORTENED FEWER ATTENDEES A HIGHER NOSHOW FACTOR SAYS CODY PLOTT VICE PRESIDENT OF SALES FOR HYATT HOTELS AND RESORTS THERE'S MORE PRESSURE ON US TO BE BETTER OPERATORS THE CHANGES HAVE FILTERED THROUGH TO EVEN THE MOST LUXURIOUS RESORTS AND URBAN HOTELS THOUGH OPERATORS SAY DEMAND FOR THEIR HIGHEND PRODUCT WILL CONTINUE CUSTOMERS WHO SOUGHT THE EXPERIENCE OF OUR RESORTS IN THE '80S ARE STILL SEEKING IT BUT ARE MORE DISCREET OR DEMANDING MORE VALUE SAYS ARTHUR BERG DIRECTOR OF MARKETING FOR THE FOUR SEASONS RESORT NEVIS IN THE BAHAMAS WHILE THE RESORT CAN COST 400 TO 500 A NIGHT PER ATTENDEE IN PEAK WINTER SEASON RATES CAN DROP TO 150 OR 175 FOR THOSE WILLING TO SHOW UP DURING SLOWER TIMES JUST AS MORE COMPANIES ARE TAKING ADVANTAGE OF OFFSEASON RATES MORE ARE SEEKING OUT ATYPICAL LOCATIONS THE FOUR SEASONS RESORT AND CLUB IN DALLAS RELIES ON GROUPS FOR 65 OF ITS BUSINESS IT OFFERS GOLF TENNIS AND OTHER UPSCALE AMENITIES ALL 20 MINUTES FROM DOWNTOWN A MEETING IN DALLAS SAYS JIM FITZGIBBON FOUR SEASONS' REGIONAL VICE PRESIDENT AND GENERAL MANAGER ISN'T PERCEIVED AS A POSH GETAWAY BUT RATHER AS A PLEASANT PLACE TO BUCKLE DOWN AND WORK DALLAS ISN'T A TRADITIONAL VACATION LOCATION WHICH SOME MIGHT SAY IS A NEGATIVE BUT IT'S PERCEIVED AS AN EFFICIENT DESTINATION IN SEASON WITH ALL THE EXTRAS THE RESORT COSTS ABOUT 300 A PERSON A DAY THE RITZCARLTON HOTEL CO WHICH FOR YEARS HAS NURTURED ITS IMAGE AS HOST TO THE LEISURE CLASS HAS FOR THE PAST THREE YEARS BEEN RESEARCHING WAYS TO GET ITSELF INTO THE MEETINGS BUSINESS TOO MANY PLANNERS AND POTENTIAL CUSTOMERS SAW THE LUXURY CHAIN AS INTIMIDATING OR BEYOND THEIR MEANS DESPITE A REPUTATION FOR TOPDRAWER SERVICE WE'VE BEEN FORCED TO BECOME MORE MARKETDRIVEN RATHER THAN PRODUCTDRIVEN SAYS JIM DICHIARA VICE PRESIDENT OF SALES AND MARKETING FOR RITZCARLTON AMONG OTHER THINGS RITZCARLTON IS REACHING OUT TO PLANNERS WITH MEETINGS PACKAGES PRICED TO MATCH THOSE OFFERED BY ITS COMPETITORS WITH HELP FROM THE RESEARCH FIRM JD POWER & ASSOCIATES THE FIRM QUIZZES CUSTOMERS AFTER THEIR EVENTS TO SEE HOW THEY FARED CUSTOMERS' EXPECTATIONS OF SERVICE HAVEN'T CHANGED SAYS MR DICHIARA WHO NOTES THAT CORPORATEGROUP BUSINESS NOW ACCOUNTS FOR ABOUT HALF THE CHAIN'S BUSINESS ONLY WHAT THEY EXPECT TO PAY FOR IT FOR MEETING PLANNERS COSTCUTTING EXTENDS BEYOND LOOKING FOR EFFICIENT LOCATIONS CHEAPER AIRLINE TICKETS REQUIRING A SATURDAYNIGHT STAY HAVE MADE WEEKEND MEETINGS INCREASINGLY COMMON ALTHOUGH THEY CAN BE UNPOPULAR WITH EMPLOYEES OUR ATTENDEES WORK SO HARD DURING THE WEEK WE GENERALLY FEEL IT'S NOT APPROPRIATE TO BRING THEM AWAY FROM THE FAMILY ON WEEKENDS SAYS MARK KUSTWAN DIRECTOR OF CONFERENCE PLANNING FOR MASSACHUSETTS MUTUAL LIFE INSURANCE CO TO ADDRESS SUCH PROBLEMS HOTELS ARE INCREASINGLY TEAMING UP WITH AIRLINES TO SNARE THE MEETINGS BUSINESS HYATT AND AMERICAN AIRLINES TOGETHER OFFER SATURDAYNIGHT RATES FOR MIDWEEK MEETINGS SEVERAL CORPORATE CLIENTS SAY COSTSAVING TACTICS HAVE ALREADY EVOLVED INTO HABIT FIREMAN'S FUND INSURANCE CO IN NOVATO CALIF HAS MADE SATURDAYNIGHT STAYS FOR MEETINGS COMMON AND PLANNERS BARGAIN HARD FOR MULTIMEETING DISCOUNTS AT VARIOUS HOTELS EVEN IF THE ENTIRE ECONOMY CHANGED FAVORABLY WE'D PROBABLY KEEP THESE TYPES OF GUIDELINES IN PLACE SAYS DAVID KLIMAN DIRECTOR OF TRAVEL MANAGEMENT AND CORPORATE EVENTS WHO HELPS COORDINATE 150 MEETINGS A YEAR STILL FIREMAN'S PAYS A LITTLE EXTRA FOR THE FIVE OR SIX MEETINGS A YEAR IT HOLDS FOR TOPPRODUCING AGENTS THEY NEED TO BE LED TO FEEL WE'RE LOOKING AFTER THEM AND VALUE THEIR TIME MR KLIMAN SAYS AND WE'RE TAKING THEM OUT OF THE OFFICE WHERE THEY'RE NOT PRODUCING REVENUES THE CRUISE INDUSTRY HAS CLEARLY BENEFITED FROM ALL THE PENNY PINCHING JOYCE LANDRY OF LANDRY & KLING A MIAMIBASED FIRM THAT SPECIALIZES IN ORGANIZING CORPORATE CRUISES SAYS THAT CRUISE LINES HAVE JUST RECENTLY BEGUN MAKING MORE BOATS AVAILABLE FOR MEETINGS NOW SUCH CARRIERS AS ROYAL CARIBBEAN AND CARNIVAL CRUISE LINES ARE OFFERING THE SHORTER TRIPS AND SPECIAL ONBOARD FACILITIES THAT MEETING PLANNERS PREFER AS WE REFURBISH AND BUILD NEW SHIPS WE'RE ADDING CONFERENCE SPACE BECAUSE IT'S SUCH A LUCRATIVE MARKET FOR US SAYS ROYAL CARIBBEAN'S LISA LUTOFFPERLO DIRECTOR OF INCENTIVE SALES MOST OF THE PEOPLE WHO TAKE BUSINESS TRIPS ON BOATS ARE FIRSTTIME CRUISERS SHE ADDS WHICH CAN TRANSLATE INTO REPEAT LEISURE BUSINESS BUT AS EVERY HOSPITALITY COMPANY KNOWS PRICE AND CONVENIENCE AREN'T EVERYTHING AFTER TRYING THE CRUISESHIP MEETING EXPERIENCE WHICH WON HIGH MARKS FOR AMBIENCE AND EFFICIENCY AZTAR MOVED BACK TO SHORE AND HELD ITS NEXT MANAGERS' MEETING IN SAN ANTONIO TEXAS NO ONE'S GOING TO GET SEASICK THERE MR RUBELI SAYS 9403280167 940328 LEISURE & ARTS TV A DYNAMIC DUO FOR THE '90S BY ROBERT GOLDBERG AND NOW STRAIGHT FROM THE OUTER LIMITS OF LAW ENFORCEMENT A FUZZY YELLOW ANGST MACHINE AND A 12TON BUCKET OF BOLTS DUCKMAN AND ROBOCOP THESE TWO WOULD HAVE TROUBLE GETTING ARRESTED ON THE NETWORKS BUT ROAMING THE LUNATIC FRINGE OF CABLE AND SYNDICATION THEY FIGHT FOR TRUTH JUSTICE AND AMERICAN TELEVISION LET ME START BY STATING FOR THE RECORD THAT I AM IN THE PARLANCE OF THE STREET DOWN WITH THE DUCK A VERY ADULT PRIMETIME CARTOON THAT BLOWS AWAY COMPETITORS LIKE THE CRITIC AND THE SIMPSONS WITH ITS TWISTED IMAGINATION DUCKMAN USA SATURDAYS 103011 PM EST IS THE TALE OF MALLARD PI A BITTER PATHETIC CRIMEFIGHTING WATERFOWL WHO DOESN'T KNOW WHERE HE FITS IN THE SCHEME OF THE COSMOS I'M JUST ONE MORE DUCK DETECTIVE WHO WORKS WITH A PIG LIVES WITH THE TWIN SISTER OF HIS DEAD WIFE THREE SONS TWO BODIES AND A COMATOSE MOTHERINLAW WITH SO MUCH GAS SHE'S A FIRE HAZARD DUCKMAN COMPLAINS LIVING IN A RUNDOWN OVERCROWDED HOUSE BY THE SIDE OF THE FREEWAY THIS DUCK IS TRYING TO RAISE HIS KIDS AS HE GRAPPLES WITH CRIME AND FRANKLY BOTH JOBS SEEM A LITTLE BEYOND HIS ABILITIES DUCKMAN WILL BATTLE SUPERCOMPUTERS RUN AMOK RELIGIOUS CHARLATANS AND A MAD BOMBER WHO HAS MISTAKEN HIM FOR ANOTHER DUCK DETECTIVE HE WILL NEARLY MEET HIS END IN AN ART GALLERY SUFFOCATED IN CELLOPHANE BY CRISCO OUR GREATEST WRAP ARTIST BUT THIS HARDBOILED DETECTIVE WITH HIS TASTE FOR SNARLING BON MOTS PLAY WITH TIGERS AND YOU GET COVERED IN YELLOW HAIR AND XRATED FLICKS LIKE HOWARD'S END IS ON THE TRAIL OF SOMETHING MORE THAN JUST BAD GUYS OUR HERO JUST YOUR AVERAGE DUCK KEEPS STUMBLING ON CLUES TO THE BIG QUESTIONS THE ONTOLOGICAL ONES I'D DREAM I FELL AND HIT MY HEAD ON A FISHBOWL AND HURT MYSELF JUST BAD ENOUGH TO WORK THE GRAVEYARD SHIFT AT A CONVENIENCE STORE A GROUP OF HARE KRISHNAS ALWAYS CAME IN AT 4 AM AND BOUGHT 16 GALLONS OF MR SLUSHEE AND A PACKAGE OF BANANAFLAVORED DING DONGS THEN THE SWEDISH BIKINI TEAM JUMPED OUT OF A MAGAZINE AND READ MOBY DICK' TO ME INSIDE A GIANT CARTON OF COTTAGE CHEESE WHY I'D ASK MYSELF WHAT COULD IT MEAN AM I MAD OR IS THE WORLD SIMPLY A MYSTERY TOO COMPLEX FOR ME TO UNDERSTAND WITTGENSTEIN MEETS WALT DISNEY THIS ANIMATED FILM NOIR OR FILM JAUNE OWES A DEBT TO EVERYONE FROM SARTRE TO BOGART TO HOWARD THE DUCK THE WRITING IS WRY SMART OFTEN BITING SOMETIMES GLOOMY BUT ALWAYS WITH TONGUE PLANTED FIRMLY IN FEATHERED CHEEK CARTOONS ARE A SURREAL WORLD WHERE ANYTHING CAN HAPPEN ANIMATORS HAVE USED THAT MALLEABILITY TO SEND THE ACTION TO IMPROBABLE PHYSICAL EXTREMES AS IN THE DEATHDEFYING ANTICS OF ROAD RUNNER BUT MOST EXCITING IS WHEN THEY GO INTERIOR DRAWING STATES OF MIND AS IN THE TWOMINUTE EXCURSION INTO THE DARK RECESSES OF DUCKMAN'S CRANIUM WHEN HE CHOOSES BETWEEN ORANGE AND TOMATO JUICE DUCKMAN HAS A SENSIBILITY THAT'S JUST AS OFFBEAT AND SCRATCHY AS ITS ANIMATION THANKS TO CREATORS WITH REMARKABLE PEDIGREES EXECUTIVE PRODUCERS GABOR CSUPO ARLENE KLASKY JEFF RENO AND RON OSBORN WHO SERVED ON SHOWS FROM MOONLIGHTING TO THE SIMPSONS JASON ALEXANDER SEINFELD AS THE VOICE OF DUCKMAN HITS JUST THE RIGHT BLEND OF ANGER NEBBISHNESS AND LOVABILITY THAT JON LOVITZ MISSES IN THE CRITIC AND ANY SHOW THAT FEATURES A THEME BY THE LATE GREAT FRANK ZAPPA HAS GOT TO BE COOL MEANWHILE THE MAN OF STEEL THE OTHER MAN OF STEEL RETURNS IN ROBOCOP THE SERIES SHOWTIMES VARY CHECK LOCAL LISTINGS MOVING FROM THE BIG SCREEN TO THE SMALL SCREEN WITHOUT LOSING ANY OF HIS METAL PARTS THE PERFECT HERO FOR THE RUST BELT ROBOCOP IS A DETROIT DETECTIVE/CYBORG HALF MAN HALF ROBOT AND LOADED WITH MORE OPTIONAL FEATURES THAN A MASERATI HE'S GOT THE BULLETRESISTANT PLATING THE BUILTIN MAGNUM AND CROWDDISPERSAL SPRAY AND THE ELECTRONIC CAMERASCOPE COMPLETE WITH LED READOUT TO REMIND HIM AND US OF HIS PRIME DIRECTIVES 1/SERVE THE PUBLIC TRUST 2/PROTECT THE INNOCENT 3/UPHOLD THE LAW AT BEST ROBOCOP RICHARD EDEN IS MUCH MORE THAN A WALKING ERECTOR SET AND ROBOCOP MORE THAN ANOTHER SHOOTEMUP MICHAEL MINER AND EDWARD NEUMEIER WRITERS OF THE FIRST ROBOCOP FILM RETURNED TO INJECT THE SERIES PREMIERE WITH CAMPY FUN AND SOCIAL SATIRE IN THEIR MONDO FUTURO MEATPACKING PLANTS ARE OWNED BY THE ECOLI BROTHERS RESIDENTS ARE ERECTING A BEVERLY HILLS WALL TO CREATE A POVERTYFREE ENVIRONMENT AND A MEGACORPORATION BRINGS OUT CYBERSAFE CONCEPTS THAT ARE ANYTHING BUT WACKO WAGNERIAN VILLAINS LIKE DR CRAY Z MALLARDO CLIFF DEYOUNG STALK DELTA CITY CAN YOU HAVE ANY NOTION AT ALL AS TO THE RANGE OF MY GENIUS THAT'S A RHETORICAL QUESTION NO NEED TO ANSWER I TOWER I LOOM I STAND LIKE A COLOSSUS THE PREMIERE WAS SUCH A DEFT MIXTURE OF HUMOR AND ACTION WIT AND DYNAMITE THAT THE SERIES WILL BE HARD PRESSED TO MATCH IT ALREADY IN FACT IN MOVING TO THE ONEHOUR FORMAT ROBOCOP SEEMS TO HAVE BECOME A LITTLE MORE CARTOONY THE PLOTTING A LITTLE MORE PREDICTABLE WITH ITS GLITZY SCIFI HARDWARE THIS PROGRAM WILL ALWAYS ATTRACT THE TEENS WHO WATCH THE ATEAM THE TRICK IS TO KEEP IT SOPHISTICATED INTERESTINGLY BOTH ROBOCOP AND DUCKMAN DERIVE MUCH OF THEIR OFFBEAT HUMOR FROM MEDIA PARODIES ROBOCOP SENDS UP THE NEWS WHILE DUCKMAN PARKS HIMSELF IN FRONT OF THE TV FLIPPING PAST THE ALLSPORTS NETWORK THE ALLPOTATO CAKES NETWORK THE SKIN DISEASE NETWORK HE FINDS THIS COULD BE YOUR LIFE THE SHOW THAT EACH WEEK TAKES A MEMORABLE PERSONALITY WE CAN CROSSPROMOTE WITH THE EVENING NEWS AND ASKS THE BURNING QUESTION WHAT MAKES HIM OR HER SO UNIQUE SO SPECIAL SO ONEOFAKIND WE'LL WATCH THEM ON TV RATHER THAN GO OUT AND HAVE A LIFE OF OUR OWN DUCKMAN AND ROBOCOP ARE TWO CULT HITS IN THE MAKING A WEBFOOTED GUMSHOEPHILOSOPHER AND A BALD HUNK OF METAL THEY'RE A DYNAMIC DUO FOR THE '90S 9403280166 940328 CLOSED END FUNDS FRIDAY MARCH 25 1994 PROCEEDS IN SECURITIES UNLIKE OPENEND FUNDS CLOSEDENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C CHICAGO N NYSE O NASDAQ T TORONTO Z DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY NAV WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE NAV OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES 52WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST 12 MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE EX DIVIDEND B THE NAV IS FULLY DILUTED C NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE 9403280165 940328 BUSINESS BRIEF ONTARIO HYDRO TO SHUT DOWN PLANTS ANTICIPATING STRIKE BY POWER WORKERS TORONTO THE PROVINCE OF ONTARIO MAY FACE BROWNOUTS AND BLACKOUTS THIS WEEK AS ONTARIO HYDRO STARTS SHUTTING DOWN ITS 20 NUCLEARPOWER STATIONS AHEAD OF A POSSIBLE STRIKE BY ITS 14700 UNIONIZED WORKERS TALKS BETWEEN THE GIANT STATEOWNED UTILITY AND THE NEGOTIATING COMMITTEE OF THE POWER WORKERS' UNION WHICH REPRESENTS THE EMPLOYEES BROKE DOWN LATE SATURDAY WHEN A NEGOTIATING COMMITTEE REJECTED THE UTILITY'S FINAL CONTRACT OFFER AS OUTRAGEOUS THE UNION WILL BE IN A LEGAL STRIKE POSITION AT MIDNIGHT MARCH 31 WHEN ITS CURRENT CONTRACT EXPIRES THE TWO SIDES HAVE BEEN SEEKING TO REACH AGREEMENT ON A NEW TWOYEAR PACT BUT REMAIN FAR APART ON ISSUES SUCH AS JOB SECURITY AND WAGE AND BENEFIT CONCESSIONS SOUGHT BY HYDRO IN ANTICIPATION OF A STRIKE HYDRO WILL BEGIN TO SHUT DOWN ITS NUCLEAR GENERATING STATIONS TODAY AND LAST FRIDAY NOTIFIED LARGE INDUSTRIAL CUSTOMERS AND MUNICIPAL UTILITIES THAT THEY COULD FACE SERVICE INTERRUPTIONS AS EARLY AS THIS WEEK HYDRO'S 20 NUCLEARGENERATING STATIONS PROVIDE ABOUT 11500 MEGAWATTS OF THE 23300MEGAWATT CAPACITY OF ITS SYSTEM A SPOKESMAN FOR THE UTILITY SAID HE SAID THE UTILITY EXPECTS DEMAND TO AVERAGE ABOUT 17500 MEGAWATTS NEXT WEEK WE'VE BEEN WARNED THAT WE COULD SEE CUTS BY THE MIDDLE OF NEXT WEEK IF NOTHING IS RESOLVED IN THE LABOR DISPUTE SAID BLAIR PEBERDY SPOKESMAN FOR TORONTO HYDRO THE PROVINCE'S LARGEST MUNICIPAL UTILITY IF THERE ARE CUTS WE COULD SEE BLACKOUTS OF UP TO HALF AN HOUR IN DIFFERENT PARTS OF THE CITY THROUGHOUT THE DAY ONLY A HANDFUL OF MUNICIPAL ELECTRICAL UTILITIES OR INDUSTRIAL USERS HAVE ACCESS TO ELECTRICAL SUPPLIES APART FROM THE ONTARIO HYDRO SYSTEM ALL WE HAVE HERE IS AN EMERGENCY GENERATOR THAT PROVIDES LIMITED AMOUNTS OF POWER STRICTLY FOR PERSONAL SAFETY SUCH AS ILLUMINATING EXIT SIGNS SAID JIM HARTFORD A SPOKESMAN FOR FORD MOTOR CO OF CANADA 94 OWNED BY FORD MOTOR CO DEARBORN MICH MR HARTFORD SAYS THAT INTERRUPTIONS IN THE POWER SUPPLY COULD FORCE FORD TO SHUT DOWN OPERATIONS AT ITS ONTARIO PLANTS IF THE BLACKOUTS ARE LENGTHY AND SUFFICIENT WARNING ISN'T GIVEN IN THE PAST YEAR HYDRO HAS ELIMINATED 6000 JOBS AND ANNOUNCED PLANS TO CLOSE SOME OF ITS GENERATING STATIONS DUE TO EXCESS CAPACITY JOHN MURPHY PRESIDENT OF THE UNION SAYS MEMBERS WANT A COMMITMENT THERE WILL BE NO FURTHER LAYOFFS IN THE TWOYEAR LIFE OF THE CONTRACT OTHER ISSUES INCLUDE UNION REPRESENTATION ON HYDRO'S BOARD AND CONCESSIONS ON WAGES AND BENEFITS MR MURPHY SAYS 91 OF EMPLOYEES VOTED IN FAVOR OF A STRIKE IF AN ACCEPTABLE OFFER WASN'T RECEIVED BY TODAY 9403280164 940328 WASHINGTON INSIGHT US FACES TROUBLE IN UN AS COUNTRIES SOFTEN THEIR STANCE ON IRAQ OIL EMBARGO BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS HEADING TOWARD A SPLIT WITH SOME OTHER UNITED NATIONS SECURITY COUNCIL MEMBERS OVER LIFTING THE INTERNATIONAL OIL EMBARGO AGAINST IRAQ AN EARLY SIGN OF TROUBLE CAME THIS MONTH FOLLOWING ITS LATEST ROUTINE REVIEW OF THE SANCTIONS THAT WERE IMPOSED TO PUNISH IRAQ FOR ITS 1990 INVASION OF KUWAIT THE COUNCIL WAS SET TO ISSUE A NOWCUSTOMARY STATEMENT THAT BAGHDAD HADN'T YET MET PRECONDITIONS FOR LIFTING THE EMBARGO BUT FRANCE RUSSIA CHINA AND SEVERAL OTHER COUNCIL MEMBERS TRIED TO INSERT A SENTENCE COMMENDING IRAQ FOR ITS RECENT COOPERATION THE US BALKED THE RESULT NO OFFICIAL STATEMENT WAS ISSUED THE ISSUE WON'T GO AWAY AFTER TWO YEARS OF RESISTANCE IRAQ HAS INDEED BEGUN MEETING THE UN REQUIREMENTS FOR LIFTING THE OIL EMBARGO IT HAS COOPERATED WITH EFFORTS TO DESTROY ITS WEAPONS OF MASS DESTRUCTION AND IT HAS ACCEPTED A UN PLAN FOR LONGTERM MONITORING DESIGNED TO ASSURE THAT IT DOESN'T REBUILD THIS FEARSOME ARSENAL UN OFFICIALS SAY NO ONE CLAIMS THAT SADDAM HUSSEIN HAS FULLY COMPLIED WITH THE UN TERMS OR THAT HE HAS MET CONDITIONS FOR LIFTING OTHER UN SANCTIONS FOR INSTANCE HE STILL INSISTS THAT KUWAIT IS PART OF IRAQ AND REFUSES TO RECOGNIZE ITS BORDER THE IRAQI RULER MAY NEVER RELENT ON SUCH ISSUES BUT HIS RECENT COOPERATION ON THE ARMS ISSUE HAS BEGUN TO RAISE QUESTIONS ABOUT HOW LONG THE EMBARGO SHOULD CONTINUE THE US FRUSTRATED BY SADDAM'S CONTINUED HOLD ON POWER WOULD LIKE TO CONTINUE THE EMBARGO UNTIL THE IRAQI LEADER IS DRIVEN FROM POWER EVEN THOUGH NO UN RESOLUTION CALLS FOR SUCH AN OUTCOME WASHINGTON IS CONCERNED THAT A RESUMPTION OF OIL SALES WOULD GIVE SADDAM FUNDS TO TEMPT ARMS SELLERS TO BREAK OTHER SANCTIONS AND HELP REBUILD HIS CONVENTIONAL MILITARY ARSENAL SO TO THE GROWING ANNOYANCE OF SOME ALLIES THE US WHICH HAS VETO POWER OVER SECURITY COUNCIL ACTIONS IS FUDGING ABOUT THE EXACT CIRCUMSTANCES UNDER WHICH IT WOULD AGREE TO END THE OIL EMBARGO DURING A RECENT CONGRESSIONAL HEARING ROBERT PELLETREAU ASSISTANT SECRETARY OF STATE FOR NEAR EASTERN AFFAIRS RESISTED PERSISTENT EFFORTS TO GET HIM TO ANSWER THAT QUESTION I'M NOT SURE IT'S WISE TO GET INTO DETAILING THE CONDITIONS FOR LIFTING THE OIL EMBARGO HE SAID SAUDI ARABIA A MAJOR US ALLY IN THE MIDEAST ALSO WORRIES THAT LIFTING THE SANCTIONS WOULD FLOOD THE WORLD'S OIL MARKETS AT A TIME WHEN SOFT PRICES ALREADY HAVE DAMAGED ITS ECONOMY BUT OTHER NATIONS ARE EAGER TO SEE THE SANCTIONS COME DOWN FRANCE IS ANXIOUS TO BUILD OIL TIES WITH BAGHDAD AND RUSSIA WANTS BAGHDAD TO BE ABLE TO REPAY OLD DEBTS AND TO RESUME ARMS PURCHASES TURKEY A STAUNCH US ALLY AND IRAQ'S NORTHERN NEIGHBOR COMPLAINS THAT THE SANCTIONS ARE COSTING IT BILLIONS OF DOLLARS IN LOST TRADE AND FOMENTING ANTIUS SENTIMENT IN SOUTHEASTERN TURKEY THE NATION'S AMBASSADOR TO THE US NUZHET KANDEMIR SAYS THE OIL PIPELINE BETWEEN TURKEY AND IRAQ WHICH IS STILL FULL OF OIL IS CORRODING OF COURSE SADDAM HUSSEIN ALWAYS COULD MAKE IT EASIER THROUGH MISCALCULATION OR HOSTILE ACTS FOR THE US TO PERSUADE ITS ALLIES THAT SANCTIONS ARE STILL NEEDED JUST LAST WEEK HE THREATENED TO MOVE AGAINST A KURDISH REBEL ENCLAVE IN NORTHERN IRAQ ACCORDING TO WIRE SERVICE REPORTS A US CONGRESSIONAL AIDE WHO FOLLOWS MIDEAST AFFAIRS PREDICTS THAT THE IRAQI RULER ALSO COULD LAUNCH OPERATIONS AGAINST SHIITES IN THE SOUTH OR VERBALLY THREATEN KUWAIT STILL ROLF EKEUS HEAD OF THE UN SPECIAL COMMISSION ON IRAQ NOTES IRAQI COOPERATION WE FEEL WE HAVE A GOOD HANDLE ON THEIR EXISTING WEAPONS PROGRAMS HE SAYS WE HAVE FOUND THEM IDENTIFIED THEM AND DESTROYED THEM HE ADDS THAT IRAQ RECENTLY PROVIDED COMPREHENSIVE DATA ON ITS CHEMICAL WEAPONS PROGRAM THE UN PLANS SOON TO TAKE THE FIRST STEP TOWARD SETTING UP A LONGTERM MONITORING OPERATION MR EKEUS HOPES TO DISPATCH INSPECTION TEAMS TO BEGIN GATHERING DATA ON IRAQ'S MISSILEPRODUCTION CAPABILITY LATER THIS SPRING SIMILAR TEAMS WILL GO TO IRAQ TO GATHER DATA ON FACILITIES CAPABLE OF PRODUCING CHEMICAL OR BIOLOGICAL WEAPONS THE INVENTORY COULD BE COMPLETED IN MONTHS PAVING THE WAY FOR THE MONITORING OPERATION TO BE PUT IN PLACE THAT COULD BE THE MOMENT OF TRUTH FOR THE US AND ITS ALLIES THE US WILL APPROACH A MAJOR DECISION POINT AT WHICH IT WILL HAVE TO DECIDE WHETHER IT WANTS TO MOVE THE GOALPOSTS ON IRAQ SAYS KENNETH KATZ A MIDEAST ANALYST AT THE CONGRESSIONAL RESEARCH SERVICE 9403280163 940328 LANDMARK GRAPHICS ACQUISITION HOUSTON LANDMARK GRAPHICS CORP SAID IT COMPLETED ITS ACQUISITION OF ADVANCED GEOPHYSICAL CORP OF DENVER FOR MORE THAN 70 MILLION IN STOCK BOTH COMPANIES ARE INVOLVED IN THE USE OF COMPUTER SYSTEMS FOR OIL AND GAS EXPLORATION 9403280162 940328 FREQUENT FLIERS RESIST FORKING OVER THEIR MILES BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL YOU'RE THE CORPORATETRAVEL MANAGER OF A MAJOR COMPANY AND YOU HAVE A BRAINSTORM THAT COULD CUT EXPENSES BY 8 EMPLOYEES WOULDN'T HAVE TO SPEND SATURDAY NIGHTS ON THE ROAD STAY IN THREADBARE MOTELS OR EAT AT BURGER DOODLE SOUNDS GREAT BUT THE IDEA CALLED A RECLAIM PROGRAM PROBABLY WON'T FLY IT CALLS FOR THE COMPANY TO CLAIM THE FREQUENTFLIER MILES THAT EMPLOYEES ACCUMULATE WHEN TRAVELING ON BUSINESS AND THEN TYPICALLY USE FOR THEIR OWN VACATIONS IN A RECLAIM PROGRAM ALL EMPLOYEES' FREQUENTFLIER MILES ARE POOLED LIKE MONEY IN A BANK THESE CREDITS CAN THEN BE USED TO PAY FOR ANY EMPLOYEE'S AIR TRAVEL IDEALLY FOR INTERNATIONAL OR OTHER HIGHFARE TRIPS WITH CREDITCARD COMPANIES HOTELS AND CARRENTAL FIRMS ALL INCREASINGLY PLYING CORPORATE CUSTOMERS WITH AIRLINE MILES THESE MILEAGE ACCOUNTS COULD GET VERY LARGE INDEED THE BIGGEST OBSTACLE PERHAPS IS THE EMPLOYEES THEMSELVES MOST BUSINESS TRAVELERS SEE THEIR MILES AS AN ENTITLEMENT LIKE WAGES OR VACATION DAYS MOREOVER THE TOP DECISIONMAKERS IN A COMPANY ARE OFTEN THE MOST FREQUENT TRAVELERS AND BIGGEST BENEFICIARIES OF THE FREE MILES YOU'RE DEALING WITH PRESIDENTS AND THE LIKE WHO'VE BEEN GOING ON VACATIONS WITH THE MILES THEY'D HAVE TO GIVE THEM UP TOO AND THEY DON'T WANT TO DO THAT SAYS KEN HELDT MANAGING DIRECTOR OF RAM DECISIONS A CONSULTING FIRM IN COLORADO SPRINGS COLO THAT HELPS COMPANIES IMPLEMENT RECLAIM PROGRAMS AT LEAST ONE RECLAIM PROGRAM IS WORKING WELL TARGET STORES A UNIT OF DAYTON HUDSON CORP BEGAN RECLAIMING FREQUENTFLIER MILES SIX YEARS AGO AND SAYS IT SAVES 500000 A YEAR ON ITS 8 MILLION TRAVEL BUDGET STEVE DAVIS THE PROGRAM'S SUPERVISOR SAYS THE KEY IS IN COMMUNICATING WITH EMPLOYEES TELL THEM HOW AND WHY IT WILL BENEFIT THEM AND THE COMPANY HE SAYS APPLY THE POLICY TO EVERYBODY AND PUBLICIZE THE SAVINGS USE THE WORD WE' A LOT AS IN WE AS A COMPANY SAVED SO MUCH MONEY' MR DAVIS SAYS SOME EMPLOYEES HAVE COMPLAINED AND A FEW HAVE EVEN TRIED TO SIDESTEP THE POLICY AND KEEP THEIR MILES BUT THE PROBLEMS HAVE BEEN MINOR MILES ARE IMPORTANT MR DAVIS CONCEDES BUT THEY AREN'T WORTH RISKING YOUR JOB FOR IN REALITY THOUGH VERY FEW COMPANIES CLAIM THEIR EMPLOYEES' MILES IN A POLL CONDUCTED LAST YEAR BY THE BUREAU OF NATIONAL AFFAIRS INC A PUBLISHING CONCERN EMPLOYEES AT ONLY 9 OF 617 COMPANIES HAD TO SURRENDER THEIR TRAVEL AWARDS AIRLINES AREN'T HELPING COMPANIES WHO WANT TO CHANGE THEIR WAYS CONTINENTAL AIRLINES PROHIBITS THE POOLING OF MILES SO COMPANIES THAT WANT THOSE CREDITS MUST ASK EMPLOYEES TO REQUEST AN AWARD CERTIFICATE FROM CONTINENTAL WHICH CAN BE TRANSFERRED TO ANOTHER EMPLOYEE DELTA AIR LINES AND TRANS WORLD AIRLINES ARE EVEN TOUGHER THEY PROHIBIT TRANSFERRING MILES TO NONFAMILY MEMBERS IN RECLAIM PROGRAMS FOR THOSE AIRLINES AN EMPLOYEE CAN ONLY TAKE FREE FLIGHTS ON HIS OR HER OWN MILES IN A VARIATION OF A RECLAIM PROGRAM IBM RECENTLY ASKED UAL CORP'S UNITED AIRLINES AND AMR CORP'S AMERICAN AIRLINES TO KEEP THEIR FREQUENTFLIER MILES IN EXCHANGE FOR STEEPER CORPORATE DISCOUNTS UNITED AND AMERICAN TURNED IBM DOWN INDUSTRY OBSERVERS SAY AIRLINES BALK AT SUCH DEALS BECAUSE THEY FEAR EMPLOYEES WILL BLAME THEM FOR STOPPING THE FLOW OF THEIR FREQUENTFLIER MILES THE FEDERAL GOVERNMENT WHICH SPENDS 18 BILLION A YEAR ON AIR TRAVEL COULD ALSO SAVE MONEY BY CLAIMING MILES ARIZONA SEN JOHN MCCAIN INTRODUCED A BILL LAST YEAR THAT CALLED FOR PUBLICLY FUNDED MILES TO BE USED ONLY FOR GOVERNMENT BUSINESS WHICH HE BELIEVES COULD RESULT IN A SAVINGS OF 75 MILLION A YEAR IT'S NOT TAXPAYERS' EXPECTATION THAT WHEN THEY SEND SOMEONE ON A TRIP THEY'RE GIVING THEM A FREE TICKET FOR A FUTURE TRIP A SPOKESMAN FOR THE SENATOR SAID THERE IS NO WORD HOWEVER ON THE FATE OF THE BILL 9403280161 940328 HONG KONG RETAIL SALES RISE HONG KONG HONG KONG GOVERNMENT RETAIL SALES DATA SHOW PROVISIONAL SALES UP 15 IN JANUARY FROM A YEAR EARLIER TO 181 BILLION HONG KONG DOLLARS US234 BILLION THE CENSUS AND STATISTICS DEPARTMENT ATTRIBUTED THE RISE TO STRONG GROWTH IN SPENDING ON JEWELERY AND WATCHES MOTOR VEHICLES CLOTHING AND FOOTWEAR AND OTHER CONSUMER DURABLES 9403280160 940328 CAMDEN PROPERTY TRUST HOUSTON CAMDEN PROPERTY TRUST SAID IT BOUGHT TWO DALLASAREA APARTMENT COMPLEXES COMPRISING ABOUT 820 UNITS THE REAL ESTATE INVESTMENT TRUST SAID THE PURCHASE INCLUDING PLANNED RENOVATIONS AND CLOSING COSTS IS VALUED AT ABOUT 28 MILLION THE SELLERS WEREN'T DISCLOSED CAMDEN BOUGHT EMERALD VALLEY A 516UNIT COMPLEX IN IRVING TEXAS AND EMERALD VILLAGE A 304UNIT COMMUNITY IN DALLAS 9403280159 940328 CANADA APPROVES CAMECO PLAN SASKATOON SASKATCHEWAN CAMECO CORP SAID THE CANADIAN GOVERNMENT APPROVED ITS PLANS TO DEVELOP THREE NEW OREBODIES AT ITS RABBIT LAKE URANIUM MINE IN NORTHERN SASKATCHEWAN THE RABBIT LAKE MINE IS OWNED TWOTHIRDS BY CAMECO AND ONETHIRD BY URANERZ EXPLORATION & MINING LTD THE COMPANIES STILL NEED LICENSES FROM THE ATOMIC ENERGY CONTROL BOARD 9403280158 940328 INTERNATIONAL LM ERICSSON UNIT GETS CONTRACT STOCKHOLM ERICSSON RADIO ACCESS AB A SUBSIDIARY OF SWEDISH TELECOMMUNICATIONS GROUP LM ERICSSON AB WON A 110 MILLIONKRONA CONTRACT COVERING RADIO EQUIPMENT TO BE INSTALLED IN HUNGARY THE COMPANY SAID THE CONTRACT COVERS A SOCALLED RAS 1000 SYSTEM SCHEDULED TO GO INTO OPERATION IN 1994 9403280157 940328 FDA AMASSING DATA IN EFFORT TO GAIN POWER TO REGULATE CIGARETTES AS DRUG BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION IS AGGRESSIVELY GATHERING EVIDENCE THAT WOULD ALLOW IT TO REGULATE CIGARETTES TESTIFYING BEFORE A CONGRESSIONAL SUBCOMMITTEE FOOD AND DRUG ADMINISTRATION COMMISSIONER DAVID A KESSLER PRESENTED EVIDENCE THAT TOBACCO COMPANIES INTENTIONALLY SELL CIGARETTES CONTAINING AN ADDICTIVE LEVEL OF NICOTINE CIGARETTE MANUFACTURERS MAY INTEND THAT MOST SMOKERS BUY CIGARETTES TO SATISFY THEIR NICOTINE ADDICTION HE SAID HE CALLED CIGARETTES HIGHTECHNOLOGY NICOTINEDELIVERY SYSTEMS AND SAID THAT CIGARETTEINDUSTRY RESEARCH RESEMBLES DRUG DEVELOPMENT DR KESSLER SAID THE AGENCY DID NOT YET HAVE ENOUGH EVIDENCE TO ASSERT REGULATION OVER CIGARETTES BUT SAID THE INVESTIGATION IS CONTINUING THE FDA HAS THE AUTHORITY TO REGULATE CIGARETTES IF THE AGENCY CONCLUDES THAT CIGARETTE MAKERS INTEND TO CONTROL THE LEVEL OF NICOTINE IN CIGARETTES TO ADDICT SMOKERS BECAUSE SUCH A MOVE WOULD LEAD TO A BAN ON CIGARETTES DR KESSLER SAID HE SOUGHT GUIDANCE FROM CONGRESS ON HOW NICOTINE SHOULD BE REGULATED IF THE AGENCY WERE TO RULE THAT CIGARETTES ARE A DRUG DR KESSLER SAID IF THE AGENCY WERE TO HYPOTHETICALLY ASSERT REGULATION THE QUESTION BECOMES HOW SHOULD NICOTINE BE REGULATED WE NEED TO DO WORK IN THAT AREA WHILE DR KESSLER RAISED THE ISSUE OF FDA REGULATION IN A LETTER LAST MONTH HIS DETAILED TESTIMONY SUGGESTED THE AGENCY IS VIGOROUSLY PURSUING A ROLE IN REGULATING CIGARETTES THE PROSPECT HAS CAST A PALL OVER CIGARETTE STOCKS PHILIP MORRIS COS FELL 75 CENTS TO 5150 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ON FRIDAY FOLLOWING THE TESTIMONY TOBACCO COMPANIES HOTLY DENY THERE IS A NEED FOR THE FDA TO REGULATE TOBACCO A MOVE THAT HAS BEEN PROPOSED BY SOME IN CONGRESS FOR SEVERAL YEARS IN TESTIMONY TOBACCOINDUSTRY REPRESENTATIVES DENIED A CENTRAL POINT OF DR KESSLER'S ARGUMENT THAT NICOTINE IS ADDICTIVE BUT THE FDA UNCOVERED EVIDENCE THAT CIGARETTE COMPANIES HAVE SUPPRESSED RESEARCH SUGGESTING NICOTINE IS ADDICTIVE DR KESSLER SAID TOBACCOCOMPANY SCIENTISTS HAD WRITTEN PAPERS THAT INDICATED NICOTINE IS ADDICTIVE SEVERAL YEARS BEFORE THAT IDEA WAS COMMONLY ACCEPTED ACCORDING TO THE FDA ONE SUCH ARTICLE HAD BEEN WITHDRAWN FROM PUBLICATION AFTER TOBACCOCOMPANY LAWYERS EXPRESSED CONCERNS IN HIS TESTIMONY DR KESSLER EMPHASIZED THAT THE FDA'S INVESTIGATION WENT FAR BEYOND WHETHER TOBACCO COMPANIES WERE DELIBERATELY ADDING NICOTINE TO CIGARETTES IN THE MANUFACTURING PROCESS IN RECENT WEEKS THE CIGARETTE INDUSTRY HAS REBUTTED CHARGES THAT IT WAS SPIKING THE LEVEL OF NICOTINE IN CIGARETTES LAST WEEK PHILIP MORRIS FILED A 10 BILLION LAWSUIT AGAINST ABC NEWS A UNIT OF CAPITAL CITIES/ABC INC BECAUSE OF A BROADCAST SUGGESTING THAT THE INDUSTRY WAS ADDING NICOTINE TO CIGARETTES TO HOOK SMOKERS MOST OF THE TOBACCOINDUSTRY TESTIMONY AT THE FRIDAY HEARING BEFORE THE SUBCOMMITTEE ON HEALTH AND THE ENVIRONMENT WAS ADDRESSED AT DISPROVING SPIKING ALLEGATIONS POINTING OUT THAT THE CIGARETTEMANUFACTURING PROCESS ACTUALLY LOWERS THE NICOTINE LEVEL IN MOST CIGARETTES BUT DR KESSLER SAID THE FACT THAT THE INDUSTRY IS ABLE TO LOWER THE NICOTINE LEVEL MAY BOLSTER THE CASE THAT TOBACCO COMPANIES INTEND FOR CIGARETTES TO POSSESS AN ADDICTIVE LEVEL OF NICOTINE DR KESSLER WHO HAS A DEGREE FROM HARVARD MEDICAL SCHOOL AND A LAW DEGREE FROM THE UNIVERSITY OF CHICAGO SAID IT IS IRRELEVANT HOW YOU INCREASE THE NICOTINE THE ISSUE IS HOW THE LEVEL IS SET AND WHY IT IS SET ABOVE THE ADDICTIVE LEVEL DR KESSLER SPENT MUCH OF HIS TESTIMONY FOCUSING ON PATENTS THAT THE INDUSTRY DEVELOPED TO INCREASE NICOTINE IN CIGARETTES BY ADDING NICOTINE TO FILTERS AND WRAPPERS WHILE CIGARETTE EXECUTIVES DENIED THE PATENTS WERE IN USE DR KESSLER SAID THE NUMBER AND PATTERN OF THESE PATENTS LEAVE LITTLE DOUBT THAT THE CIGARETTE INDUSTRY HAS DEVELOPED ENORMOUSLY SOPHISTICATED METHODS FOR MANIPULATING NICOTINE LEVELS IN CIGARETTES DR KESSLER'S POSITION IS GAINING SUPPORT IN WASHINGTON ON CBS NEWS'S FACE THE NATION YESTERDAY SURGEON GENERAL JOYCELYN ELDERS SAID THAT IF THERE IS EVIDENCE THAT TOBACCO COMPANIES HAVE CONTROLLED THE AMOUNT OF NICOTINE IN THEIR PRODUCTS CIGARETTES SHOULD BE REGULATED BY THE FOOD AND DRUG ADMINISTRATION 9403280156 940328 FASB TO STUDY COMPROMISE ON OPTIONS RULE ACCOUNTING GROUP AGREES TO CONSIDER SOFTENING STANCE ON DEDUCTION BY LEE BERTON AND JOANN S LUBLIN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A COMPROMISE MAY BE IN THE WORKS OVER A CONTROVERSIAL ACCOUNTING PROPOSAL THAT WOULD REQUIRE COMPANIES TO DEDUCT THE COST OF EMPLOYEE STOCK OPTIONS FROM EARNINGS THE FINANCIAL ACCOUNTING STANDARDS BOARD THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS HAS PROPOSED THAT STOCK OPTIONS WHICH AREN'T CURRENTLY CHARGED AGAINST EARNINGS BE CONSIDERED AN EXPENSE BY THE COMPANY BUT MANY BUSINESSES HAVE VIGOROUSLY OPPOSED THE PLAN PARTICULARLY STARTUP COMPANIES AND HIGHTECHNOLOGY CONCERNS THAT USE OPTIONS TO ATTRACT EXECUTIVE TALENT THE CHANGE WOULD TAKE EFFECT WITH 1997 FINANCIAL STATEMENTS IN THE WAKE OF THE MANY PROTESTS THE FASB WILL LOOK AT MANY NEW PROPOSALS AMONG THEM A COMPROMISE PLAN THAT WOULD CAUSE LESS DAMAGE TO COMPANY EARNINGS THE COMPROMISE WHICH HAS BEEN SUGGESTED BY SEVERAL BUSINESS EXECUTIVES WOULD TREAT OPTIONS IN TWO DIFFERENT WAYS ONCE THEY ARE EXERCISED STOCK THAT IS SOLD QUICKLY WOULD BE CONSIDERED COMPENSATION AND WOULD BE CHARGED AGAINST EARNINGS STOCK THAT MUST BE HELD AND ISN'T SOLD QUICKLY WOULD BE CONSIDERED AN EQUITY STAKE IN THE COMPANY AND WOULDN'T BE DEDUCTED FROM EARNINGS SUCH A DISTINCTION WOULD SUBSTANTIALLY REDUCE A COMPANY'S COST IN GRANTING STOCK OPTIONS EXECUTIVES OF SEVERAL MAJOR CORPORATIONS ARE PRIVATELY PROMOTING THE COMPROMISE ALTHOUGH THEY PUBLICLY OPPOSE ANY CHANGE AT ALL IN HOW COMPANIES ACCOUNT FOR OPTIONS THE COMPROMISE WOULD REDUCE THE IMPACT ON PROFITS AND BE ACCEPTABLE TO MY COMPANY AS THE LESSER OF TWO EVILS SAID THE CHIEF FINANCIAL OFFICER FOR ONE BIG COMPANY DENNIS BERESFORD FASB CHAIRMAN SAID THE EQUITY COMPROMISE IS SOMETHING WE WILL CONSIDER DURING THE BOARD'S APRIL 18 MEETING AT THE ORGANIZATION'S NORWALK CONN HEADQUARTERS COMPENSATION CONSULTANTS ACADEMICS INVESTMENT BANKERS AND ACCOUNTINGFIRM EXECUTIVES ARE EXPECTED TO ATTEND NEXT MONTH'S SESSION WHICH IS SCHEDULED TO DISCUSS THE STOCKOPTION PROPOSAL IF ANY OF THEM ARE ABLE TO COME UP WITH A FORMULA APPROACH TO REDUCE THE PROFIT PENALTIES FROM CHARGING OPTIONS WE'D CERTAINLY HAVE TO LOOK AT IT MR BERESFORD SAID HE SPOKE FROM SAN JOSE CALIF WHERE THE BOARD WAS WRAPPING UP SEVEN DAYS OF HEARINGS ON ITS OPTIONS PROPOSAL THE BOARD HAS RECEIVED A STORM OF PROTEST OVER THE PROPOSED RULE WHICH HAS GENERATED MORE OPPOSITION THAN ANY OTHER CHANGE THE GROUP HAS MADE SINCE IT WAS FOUNDED IN 1973 WHILE THE BOARD WAS HOLDING PUBLIC HEARINGS IN SAN JOSE FRIDAY THOUSANDS OF EMPLOYEES FROM HIGHTECH COMPANIES RALLIED AT A NEARBY CONFERENCE CENTER TO OPPOSE THE OPTIONS PROPOSAL LED BY A MARCHING BAND THE RALLY WAS ADDRESSED BY STATE OFFICIALS AND FEDERAL LEGISLATORS OPPOSING THE PROPOSAL EXECUTIVES SAID THAT ANY WILLINGNESS BY THE FASB TO LOOK AT A COMPROMISE IS A GOOD SIGN CONSIDERATION OF THE EQUITY PROPOSAL SHOWS THAT THE FASB HAS AN OPEN MIND WHICH IS HEALTHY SAID THOMAS JONES EXECUTIVE VICE PRESIDENT OF CITICORP BUT THE RIGHT SOLUTION IS TO STICK WITH INCREASED DISCLOSURE TIMOTHY LUCAS THE FASB'S RESEARCH DIRECTOR SAID THE EQUITY COMPROMISE IS JUST ONE OF MANY THAT HAVE BEEN SUGGESTED ANOTHER POSSIBILITY HE SAID WOULD BE TO REDUCE THE SIZE OF THE CHARGE BY ELIMINATING STOCKPRICE VOLATILITY FROM THE PROPOSED FORMULA TO VALUE THE OPTION HOWEVER EXECUTIVES ARE PUSHING MORE STRONGLY FOR THE EQUITY COMPROMISE THIS COULD BE AN EXCELLENT COMPROMISE SAID PETER CHINGOS A PARTNER IN THE ACCOUNTING AND CONSULTING FIRM KPMG PEAT MARWICK WHO SPECIALIZES IN EXECUTIVE PAY THE PLAN WOULD PROMOTE STOCK OWNERSHIP WHILE STILL CHARGING A PORTION OF OPTIONS' COST AGAINST EARNINGS HE OBSERVED SUSAN EICHEN A PRINCIPAL AT WILLIAM M MERCER INC ADDED ANYTHING THAT REDUCES SOME OF THE EARNINGS CHARGE WOULD PLACATE SOME OF THE CRITICS BUT SOME PEOPLE WON'T BE HAPPY UNLESS THE FASB PROPOSAL GOES AWAY ENTIRELY FOR INSTANCE COMPANIES WITH BROAD STOCKOPTION PLANS MIGHT STILL BALK AT REQUIRING LOWLEVEL EMPLOYEES TO OWN SHARES FOR A LONG TIME AFTER EXERCISING THEIR OPTIONS WITH SUCH A MANDATE OPTIONS WILL NOT BE AS ATTRACTIVE TO RANKANDFILE EMPLOYEES OBSERVED PEARL MEYER WHO HEADS HER OWN COMPENSATION CONSULTING FIRM IN NEW YORK 9403280155 940328 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP NEW YORK TERRENCE L STECZ 39 YEARS OLD WAS NAMED TO THE NEW POSITION OF PRESIDENT OF THE WHITEHALLROBINS HEALTHCAREPRODUCTS DIVISION OF THE DRUG MEDICALSUPPLY AND FOOD CONCERN MR STECZ WAS MOST RECENTLY PRESIDENT OF THE COMPANY'S AH ROBINS CONSUMER PRODUCTS UNIT WHITEHALLROBINS HAD US SALES OF ABOUT 12 BILLION IN 1993 9403280154 940328 INTERNATIONAL HOW MEXICO'S BEHINDTHESCENES TACTICS AND A SECRET PACT AVERTED MARKET PANIC BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE MUTED REACTION IN MEXICAN STOCK AND CURRENCY MARKETS FRIDAY AFTER THE ASSASSINATION OF PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO WAS NO ACCIDENT BUT IT ALSO WASN'T GUARANTEED A PANIC DEVELOPED AMONG INVESTORS RIGHT AFTER THE SLAYING AND COULD HAVE SENT THE MARKETS TUMBLING BUT MEXICAN AUTHORITIES MANAGED TO MAINTAIN CALM THROUGH A ONCESECRET AGREEMENT WITH THE US TREASURY AND A COMPLEX MIX OF MORAL SUASION AND VAGUE THREATS TO INVESTORS WHO MIGHT HAVE PROFITED FROM A PANIC THIS IS THE STORY OF THAT EFFORT AT 930 PM IN MEXICO CITY LAST WEDNESDAY 2 1/2 HOURS AFTER THE ASSASSINATION JOSE ANGEL GURRIA HEAD OF THE POWERFUL DEVELOPMENT BANK NACIONAL FINANCIERA AND SEVERAL OF MEXICO'S MOST SENIOR FINANCIAL OFFICIALS WERE ASSEMBLING AT 2 ARTURO STREET A COLONIAL MANSION CONVERTED INTO FINANCE MINISTRY OFFICES MR GURRIA AND EVERYONE ELSE IN THE ROOM KNEW MR COLOSIO WAS DEAD EVEN THOUGH THE GOVERNMENT HADN'T YET ACKNOWLEDGED THAT TO THE WORLD KNOWING THE PANIC THAT COULD BE CREATED WHEN THE NEWS WAS LET OUT MR GURRIA REFLECTED THAT EITHER MEXICO WAS ABOUT TO PROVE THE STRENGTH OF ITS FINANCIAL TEAM OR THE MARKETS WOULD SEND MEXICO INTO CHAOS IT WAS LIKE COLOSIO'S BODY WAS LYING ON THE TABLE IN FRONT OF THE GROUP HE SAYS WE KNEW WE HAD A JOB TO DO MEXICAN FINANCIAL MARKETS WERE ALREADY FRAGILE ECONOMIC GROWTH IN 1993 REGISTERED A PATHETIC 04 THE CHIAPAS PEASANT REVOLT THE KIDNAPPING OF A WELLKNOWN EXECUTIVE AND SURPRISING RIFTS WITHIN THE RULING PARTY HAD ALL RAISED QUESTIONS ABOUT SOCIAL STABILITY STOCKS HAD TUMBLED IN RECENT WEEKS AND THE PESO WAS DOWN 81 AGAINST THE DOLLAR THIS YEAR AS CALLS POURED INTO THE FINANCE MINISTRY AND BANCO DE MEXICO THE CENTRAL BANK IT BECAME CLEAR THAT THERE COULD BE A FULLFLEDGED RUN AGAINST THE PESO SPECULATORS WERE LOOKING FOR WAYS TO SELL THE PESO SHORT A BET ON ITS DECLINE MEXICAN BANKS WHILE FRIENDLIER TO THE GOVERNMENT THAN FOREIGN INVESTORS WOULD CLEARLY DUMP PESOS TO PROTECT THEMSELVES AND MAKE A PROFIT IF THEY HAD TO IN ADDITION THE FINANCE MINISTRY KNEW THAT JAPANESE BANKS AND CORPORATIONS HAD ALREADY BEEN UNLOADING HUGE POSITIONS IN PESO SECURITIES TO RAISE CASH AND DRESS UP YEAREND FINANCIAL STATEMENTS A CURRENCY CRISIS COULD SPARK FURTHER HUGE SALES BY THE JAPANESE HOWEVER HACIENDA AS THE FINANCE MINISTRY IS KNOWN HAD A SECRET WEAPON JUST BEFORE THE NORTH AMERICAN FREE TRADE AGREEMENT DEBATE BETWEEN ROSS PEROT AND VICE PRESIDENT AL GORE HACIENDA'S UNDERSECRETARY OF FINANCE GUILLERMO ORTIZ HAD QUIETLY NEGOTIATED A 6 BILLION SWAP LINE WITH THE US TREASURY THE IDEA WAS TO GIVE THE MEXICAN CENTRAL BANK MORE DOLLARS TO USE TO SUPPORT THE VALUE OF THE PESO IF NAFTA FAILED TO WIN APPROVAL BUT THE AGREEMENT WHICH HAD REMAINED SECRET BECAUSE IT WAS NEVER FORMALLY SIGNED WAS STILL AROUND AND MR ORTIZ HOPED TO INVOKE IT NOW ANNOUNCING THE AGREEMENT WOULD GIVE MEXICAN AUTHORITIES A CRUCIAL PSYCHOLOGICAL BOOST WITH INVESTORS BY SHOWING THAT ANYONE ATTACKING THE PESO WOULD HAVE TO TAKE ON BOTH MEXICO AND THE US BUT IT MIGHT TAKE A DAY TO GET ALL THE APPROVALS FROM THE US GOVERNMENT COULD THE MEXICAN MARKETS BE SHUT DOWN MR ORTIZ WONDERED BY 11 PM WITH INTERNATIONAL INVESTORS NERVOUS AND EUROPEAN MARKETS ABOUT TO OPEN MEXICAN FINANCIAL OFFICIALS WERE IN DISCUSSIONS ABOUT SHUTTING TRADING IN STOCKS AND THE CURRENCY FOR A DAY TO LET THINGS SETTLE DOWN BUT A FULLSCALE ARGUMENT BROKE OUT ABOUT THE KIND OF SIGNAL THE CLOSINGS WOULD SHOW THE MEETING SPLIT UP INTO WORKING GROUPS AND TOOK UNTIL 2 AM TO DECIDE THAT AT LEAST THE CURRENCY MARKETS AND THE BANKS SHOULD BE CLOSED PEDRO ASPE THE FINANCE MINISTER AND MIGUEL MANCERA THE CENTRAL BANK HEAD THEN LEFT FOR PRESIDENT CARLOS SALINAS'S OFFICES WITH AT LEAST SOME DECISIONS MADE OFFICIALS CALLED ROBERTO HERNANDEZ THE CHIEF EXECUTIVE OF BANAMEXACCIVAL MEXICO'S LARGEST BANK INFORMING HIM OF THE BANK AND CURRENCYMARKET CLOSURE THE HACIENDA OFFICIALS SAID THE BANKS WOULD CERTAINLY BE FREE TO TRADE FRIDAY BUT THEY ALSO WARNED THAT HACIENDA WOULD BE WATCHING CLOSELY FOR ANY SPECULATIVE CHALLENGE AT 330 AM IN BOSTON ROBERT CITRONE MANAGER OF FIDELITY INVESTMENT MANAGEMENT'S NEW MARKETS INCOME FUND WAS BACK IN THE FIRM'S WARRENLIKE OFFICES A FEW HOURS EARLIER HE HAD STEPPED OFF THE TRAIN IN ACTON MASS GREETING HIS WIFE AND NEWBORN SON I HAVE BAD NEWS HIS WIFE HAD SAID THE GARAGE FLOODED WITH SNOWMELT AGAIN MR CITRONE THOUGHT THEN HIS WIFE TOLD HIM MR COLOSIO HAD BEEN SHOT AT HOME THROUGH THE EVENING MR CITRONE PHONED CENTRALBANK CONTACTS OR ANYONE ELSE WHO COULD GIVE HIM A READING ON THE SITUATION A MEXICAN CENTRALBANK OFFICIAL AT ONE POINT CONVINCED HIM THAT IT HAD ENOUGH CURRENCY RESERVES TO DEFEND THE PESO THAT WAS TRUE BUT WHAT IF OTHER INVESTORS PANICKED BROKERS WERE ALREADY TALKING ABOUT A 300POINT DECLINE IN MEXICAN STOCKS AND THAT WOULD ALSO MEAN THE CURRENCY WOULD BE IN TROUBLE AT 4 AM FINANCE MINISTER ASPE RETURNED TO ARTURO STREET WITH AN ANSWER FROM PRESIDENT SALINAS THURSDAY WOULD BE A DAY OF MOURNING FOR MR COLOSIO BANKS AND CURRENCY MARKETS WOULD CLOSE NOW IT WAS TIME TO BRING OUT THE SECRET WEAPON THE 6 BILLION SWAP AGREEMENT MR ORTIZ THE UNDERSECRETARY OF FINANCE PICKED UP THE PHONE AND DIALED THE HOME IN WASHINGTON OF LAWRENCE SUMMERS THE UNDERSECRETARY OF INTERNATIONAL AFFAIRS FOR THE TREASURY MR SUMMERS THOUGHT HE COULD SECURE THE SWAP LINE THE HOPE WAS TO CLOSE THE MEXICAN STOCK EXCHANGE TOO BUT BOLSA AUTHORITIES WANTED TO MAKE SURE THAT THERE WOULDN'T BE ANY TRADING OF MEXICAN SHARES IN NEW YORK EITHER MR SUMMERS SAID HE WOULD SEE IF THAT COULD BE DONE LATER MR ORTIZ LEARNED THAT TREASURY HAD ASKED FOR A CLOSURE OF MEXICAN STOCKS BUT THE US SECURITIES AND EXCHANGE COMMISSION AND THE NEW YORK STOCK EXCHANGE WERE RESISTING THE IDEA IT LOOKED LIKE THE US MARKETS WOULD OPEN MEXICAN SHARES AFTER ONLY A SHORT DELAY BUT TRADING OF MEXICAN STOCKS IN LONDON WAS TURNING OUT TO BE DISORDERLY A SIGN OF PANIC SHARES IN BELLWETHER TELEFONOS DE MEXICO WERE DOWN MORE THAN 5 THE ARTURO STREET TEAM TURNED TO CARLOS MENDOZA A YOUNG STANFORD BUSINESS SCHOOL GRADUATE WHO RUNS NACIONAL FINANCIERA'S 15 BILLION MEXICAN STOCK FUND MR MENDOZA HAD WON THE RESPECT OF INTERNATIONAL TRADERS LATE LAST YEAR WHEN HE MANAGED TO SELL 1 BILLION OF TELMEX SHARES INTO THE MARKETS WITHOUT ANYONE'S NOTICING SLEEPLESS AND WORRIED MR MENDOZA CALLED MEXICAN BROKERS IN LONDON ENCOURAGING THEM TO KEEP MARKETS ORDERLY TO KEEP THINGS UNDER CONTROL WHILE STILL NOT COMMITTING MUCH OF NACIONAL FINANCIERA'S MONEY HE GAVE THE LONDON TRADERS AN INDICATION WHERE HE MIGHT BUY OR SELL TELMEX SHARES THAT HINT TIGHTENED THE SPREAD OR DIFFERENCE BETWEEN THE BUYING AND SELLING PRICE LESS THAN AN HOUR BEFORE THE NEW YORK OPENING TELMEX SHARES HAD RECOVERED WITH THE ARTURO STREET MEETINGS FINALLY OVER AS THE SUN WAS COMING UP IN MEXICO CITY THE FINANCE OFFICIALS BEGAN TRYING TO WIN BACK INVESTOR CONFIDENCE BY CALLING EVERYONE THEY COULD THINK OF AROUND THE WORLD FROM TRADERS TO CHIEF EXECUTIVES JUDGING BY THE CALLS INTERNATIONAL INVESTORS WERE STILL SCARED BUT THE MEXICANS BEGAN WINNING THEM BACK ONE AT A TIME THE PERFORMANCE WAS MAGNIFICENT SAYS A TRUST CO OF THE WEST PORTFOLIO MANAGER ALMOST EVERY INVESTMENT BANK AND EVERY INVESTOR IN THE US WAS ON THE PHONES FROM 8 TO 9 IN THE MORNING AND HAD IT ALL LAID OUT FOR THEM BY THE MEXICANS BY THURSDAY AFTERNOON THE TIDE HAD TURNED STORIES BURST ACROSS THE NEWS WIRES ANNOUNCING THE NEW 6 BILLION SWAP AGREEEMENT APPROVED BY PRESIDENT CLINTON ALSO IN A RARE EXAMPLE OF QUICK AGREEMENT PRESIDENT SALINAS HAD MANAGED TO GATHER GOVERNMENT BUSINESS AND LABOR LEADERS TO ANNOUNCE A RESIGNING OF THE COUNTRY'S BASIC ECONOMIC PACT TELMEX SHARES FINISHED JUST 56 LOWER ON THE BIG BOARD AND THEY REBOUNDED FRIDAY ONCE THE MEXICAN BOLSA REOPENED INVESTOR CONFIDENCE HAD BEEN RESTORED 9403280153 940328 HEDGE FUNDS FACE MOUNTING PRESSURE FOR REGULATION BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON PRESSURE IS BUILDING ON CAPITOL HILL TO REGULATE HEDGE FUNDS IN RECENT DAYS HOUSE ENERGY AND COMMERCE CHAIRMAN JOHN DINGELL D MICH HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS AND HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE CHAIRMAN EDWARD MARKEY D MASS HAVE CALLED FOR CLOSER REGULATORY OVERSIGHT OF HEDGE FUNDS PRIVATE INVESTMENT PARTNERSHIPS THAT TYPICALLY ARE HEAVILY LEVERAGED AND OFTEN MAKE BIG FINANCIAL BETS IN THE MARKETS MR GONZALEZ ARGUING THAT BANKS SHOULD PROVIDE MORE INFORMATION ON THEIR EXPOSURE TO HEDGE FUNDS SAID THE BANKING COMMITTEE WILL HOLD AN APRIL 13 HEARING TO WHICH KEY REGULATORS AND HEDGEFUND OPERATOR GEORGE SOROS HAVE BEEN INVITED HE SAID HEDGE FUNDS DESERVE EXTRA SCRUTINY BECAUSE THEIR MASSIVE CLOUT FUELED BY LARGE CREDIT LINES FROM BANKS IS USED FOR SPECULATIVE PURPOSES REPS DINGELL AND MARKEY CITING NEW CONCERNS ABOUT THE TRADING ACTIVITIES OF HEDGE FUNDS AND THEIR ABILITY TO ROIL GLOBAL FINANCIAL MARKETS RECENTLY ASKED THE TREASURY TO ADOPT A RULE REQUIRING HEDGE FUNDS TO REPORT THEIR LARGE POSITIONS IN US GOVERNMENT SECURITIES UPON REQUEST THEY ALSO URGED THE SECURITIES AND EXCHANGE COMMISSION TO TELL CONGRESS IF THE REGISTRATION AND REPORTING REQUIREMENTS OF FEDERAL SECURITIES LAWS SHOULD COVER HEDGE FUNDS HEDGE FUNDS HAVE HAD LOSSES OF HUNDREDS OF MILLIONS OF DOLLARS IN FOREIGNEXCHANGE MARKETS IN RECENT MONTHS SEC CHAIRMAN ARTHUR LEVITT HAS SAID HE WANTS MORE INFORMATION ON THEIR ACTIVITIES MR LEVITT HAS BEEN ASKED TO TESTIFY AT NEXT MONTH'S BANKING COMMITTEE HEARING ALONG WITH ALAN GREENSPAN THE FEDERAL RESERVE BOARD CHAIRMAN EUGENE LUDWIG THE COMPTROLLER OF THE CURRENCY AND BARBARA HOLUM THE ACTING CHIEF OF THE COMMODITY FUTURES TRADING COMMISSION BEFORE WE GET TO THE CRISIS STAGE WITH HEDGE FUNDS ALL THE REGULATORS SHOULD DEVELOP THE MEANS TO BETTER UNDERSTAND THE RISKS POSED BY HEDGE FUNDS THIS CAN ONLY BE DONE BY INCREASED DISCLOSURE MR GONZALEZ ADDED A 1992 JOINT TREASURYSECFEDERAL RESERVE REPORT ON THE GOVERNMENT BOND MARKET CAUTIONED THAT THE SHEER SIZE OF THE POSITIONS TAKEN BY THE HEDGE FUNDS RAISES CONCERNS ABOUT SYSTEMIC RISKS THAT THESE FUNDS MAY INTRODUCE INTO THE FINANCIAL MARKETS 9403280152 940328 GRUMMAN DIRECTORS TAKE NO POSITION' ON NORTHROP OFFER BETHPAGE NY GRUMMAN CORP DIRECTORS SAID THEY ARE TAKING NO POSITION AT THIS TIME ON NORTHROP CORP'S UNFRIENDLY ACQUISITION BID OF 60 A SHARE OR 204 BILLION THE GRUMMAN DECISION DISCLOSED IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION LEAVES THE DOOR OPEN TO ANOTHER BID BY MARTIN MARIETTA CORP WHICH HAD EARLIER OFFERED 55 A SHARE OR 193 BILLION IN A NEGOTIATED BUYOUT AGREEMENT WITH GRUMMAN A DEFENSEELECTRONICS CONCERN AND BUILDER OF TACTICAL AIRCRAFT IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE GRUMMAN SHARES CLOSED AT 6325 UP 25 CENTS THE TENDER OFFER BY MARTIN MARIETTA A BETHESDA MD AEROSPACE AND ELECTRONICS CONCERN EXPIRES NEXT MONDAY THE OFFER BY LOS ANGELESBASED NORTHROP EXPIRES APRIL 8 SOME ANALYSTS BELIEVE MARTIN MARIETTA MAY DECIDE TO WALK AWAY FROM A BIDDING WAR FOR GRUMMAN ONE POSSIBILITY SOME CITE IS THAT MARTIN MARIETTA IN LEAGUE WITH OTHER COMPANIES MIGHT TRY TO BUY OUT NORTHROP LATER AFTER IT HAS ABSORBED GRUMMAN NORTHROP PRODUCES MILITARY AIRCRAFT COMMERCIALAIRCRAFT COMPONENTS AND DEFENSEELECTRONICS SYSTEMS THE GRUMMAN DIRECTORS' DECISION LATE THURSDAY TO TAKE NO POSITION ON THE NORTHROP BID FOLLOWED A SERIES OF TELEPHONE CALLS BETWEEN THE COMPANIES ACCORDING TO THE SEC FILING GRUMMAN SAID THE MOVE REFLECTED ITS INABILITY TO PREDICT WHAT BIDS OR REVISIONS TO BIDS MAY ARISE EARLIER THE GRUMMAN BOARD HAD AUTHORIZED LIMITED TALKS WITH NORTHROP TO CLARIFY ITS MERGER OFFER NOT TAKING A POSITION ALSO ALLOWS THE GRUMMAN BOARD TO AVOID FOR NOW ANY PENALTIES IT MIGHT HAVE TO PAY MARTIN MARIETTA IF THE EARLIER MERGER AGREEMENT ENDS AT MOST GRUMMAN COULD OWE 588 MILLION IN FEES AND EXPENSES TO MARTIN MARIETTA ALTHOUGH THE MATTER WOULD LIKELY BE A SOURCE OF DISAGREEMENT 9403280150 940328 CRUISE SHIPS FACE RULES ON SCREENING OF BAGGAGE WASHINGTON THE COAST GUARD MOVED TO REQUIRE CRUISE SHIPS TO SCREEN BAGGAGE WITH XRAY DEVICES FOR WEAPONS AND EXPLOSIVES UNDER RULES PROPOSED BY THE SERVICE CRUISE LINES WOULD ALSO HAVE TO USE IDENTIFICATION CARDS FOR CREW MEMBERS AND TO LIGHT SHIPS AT NIGHT CRUISE TERMINALS WOULD HAVE TO TAKE SIMILAR STEPS THE COAST GUARD SAID ABOUT 100 SHIPS AND 53 PASSENGER TERMINALS WOULD BE AFFECTED THE RULES WOULD REQUIRE CRUISE LINES TO COMPLY WITH SECURITY STANDARDS SET BY THE INTERNATIONAL MARITIME ORGANIZATION IN 1986 COMPLIANCE HAS BEEN VOLUNTARY AND THE COAST GUARD SAID MANY CRUISE LINES HAVEN'T ADHERED TO THE STANDARDS THE ACTION STEMS FROM THE MURDER OF AN AMERICAN PASSENGER ON THE ACHILLE LAURO NINE YEARS AGO BEFORE DECIDING WHETHER TO ADOPT THE RULES THE COAST GUARD WILL ACCEPT COMMENT ON THEM UNTIL JUNE 23 9403280149 940328 MARIETTA'S EXCHIEF PLEADS NOT GUILTY IN FRAUD CASE BINGHAMTON NY AP MARIETTA CORP'S FORMER CHIEF EXECUTIVE PLEADED NOT GUILTY TO SECURITIESFRAUD VIOLATIONS JOHN NADOLSKI WAS RELEASED ON HIS OWN RECOGNIZANCE AFTER A BRIEF APPEARANCE BEFORE US DISTRICT JUDGE THOMAS MCAVOY MR NADOLSKI WAS INDICTED LAST MONTH BY A FEDERALCOURT GRAND JURY IN SYRACUSE NY FOR ALLEGEDLY CONSPIRING WITH FORMER MARIETTA VICE PRESIDENT THOMAS J BLAIR TO FALSIFY DOCUMENTS TO BOLSTER HIS COMPANY'S FINANCIAL IMAGE WITH INVESTORS MARIETTA BASED IN CORTLAND NY DESIGNS AND MARKETS GUESTAMENITY PROGRAMS TO THE TRAVEL AND LODGING INDUSTRY MR BLAIR RESIGNED IN 1991 AFTER HE WAS ACCUSED OF EMBEZZLING 400000 HE PLEADED GUILTY TO FEDERAL THEFT AND CONSPIRACY CHARGES LAST YEAR AND COOPERATED WITH THE GOVERNMENT IN ITS INVESTIGATION MR NADOLSKI WAS CHARGED WITH SIX COUNTS OF SECURITIES FRAUD HE FACES A MAXIMUM PENALTY OF 10 YEARS IN PRISON AND A 1 MILLION FINE IF CONVICTED HE IS ON AN UNPAID LEAVE OF ABSENCE AS COMPANY PRESIDENT FROM MARIETTA 9403280148 940328 TYSON SAYS FED MAY RAISE RATES MORE THAN EXPECTED WASHINGTON LAURA TYSON CHIEF WHITE HOUSE ECONOMIST SAID THE FEDERAL RESERVE MAY INCREASE SHORTTERM INTEREST RATES MORE THAN THE ADMINISTRATION PREDICTED THIS YEAR THE WHITE HOUSE PREDICTED IN FEBRUARY THAT THE FED WOULD RAISE SHORTTERM INTEREST RATES BY ABOUT HALF A PERCENTAGE POINT IN 1994 THE YEAR ISN'T YET THREE MONTHS OLD AND THE FED HAS DONE THAT IN A SPEECH HERE MS TYSON SAID ECONOMIC GROWTH THIS YEAR IS MORE LIKELY TO EXCEED THE WHITE HOUSE FORECAST THAN FALL SHORT OF IT SIGNS OF CONSUMER SPENDING SHOULD REMAIN HEALTHY BECAUSE INCOMES ARE GROWING SHE SAID INVESTMENT SPENDING SHOULD REMAIN HEALTHY BECAUSE DEMAND IS GROWING INVENTORIES ARE EXTREMELY LEAN RIGHT NOW WHICH WILL BE ANOTHER REASON FOR ADDITIONAL PRODUCTION THE WHITE HOUSE HAS PROJECTED THAT THE ECONOMY WOULD GROW 3 BETWEEN THE FOURTH QUARTERS OF 1993 AND 1994 MS TYSON SAID A GREATERTHANPREDICTED INCREASE IN SHORTTERM RATES ISN'T A THREAT TO ECONOMIC GROWTH IN FACT IT'S A REFLECTION OF THE STRONGER GROWTH IN THE ECONOMY SHE SAID 9403280147 940328 MACHINETOOL ORDERS SHOW 22 DROP BUT ANALYSTS STILL CONSIDER LEVEL HIGH BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MACHINETOOL ORDERS FELL 22 IN FEBRUARY FROM JANUARY BUT ANALYSTS SAID ORDERS REMAINED AT A RELATIVELY HIGH LEVEL FEBRUARY'S ORDERS TOTALED 2808 MILLION DOWN FROM 3602 MILLION THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY WHICH COMPILES THE FIGURES CALLED FEBRUARY'S ORDERS VERY GOOD ESPECIALLY WHEN COMPARED WITH THE YEAREARLIER PERIOD WHICH WAS ONE OF THE INDUSTRY'S STRONGEST FEBRUARYS COMPARED WITH FEBRUARY 1993'S 2827 MILLION ORDERS FELL ONLY 1 THAT'S A GOOD HARBINGER OF CONTINUED STRONG GROWTH IN ORDER ACTIVITY DURING 1994 THE ASSOCIATION SAID DURING 1994'S FIRST TWO MONTHS ORDERS TOTALED 641 MILLION UP 40 FROM 4582 MILLION IN THE YEAREARLIER PERIOD MACHINE TOOLS CUT AND FORM METAL PARTS FOR OTHER MACHINES THEIR ORDERS ARE CONSIDERED AN INDICATOR OF FUTURE ECONOMIC ACTIVITY BECAUSE THE PRODUCTS ARE SHIPPED NINE TO 18 MONTHS LATER WHAT YOU HAVE OUT THERE IS DEFINITELY A RECOVERY UNDER WAY BUT IT IS DEFINITELY A RECOVERY THAT CAN BE CHARACTERIZED AS SLUGGISH BY HISTORIC STANDARDS SAID JOHN E MCGINTY AN ANALYST WITH CS FIRST BOSTON IN BOSTON MITCHELL I QUAIN AN ANALYST WITH WERTHEIM SCHRODER & CO IN NEW YORK ADDED THAT OVERSEAS COMPETITORS ARE TARGETING THE US MARKET TO OFFSET WEAK MARKETS AT HOME THE COMPETITION IS KEEPING US MACHINETOOL MAKERS FROM GETTING THEIR FAIR SHARE OF ORDERS HE SAID STILL THERE IS STRENGTH IN THE ORDERS ANALYSTS SAID US AUTO MAKERS WHICH DROVE MACHINETOOL ORDERS LAST YEAR CONTINUE TO PLACE ORDERS AS THEY STRIVE TO KEEP UP WITH DEMAND INCREASE PRODUCTIVITY AND TURN OUT NEW VEHICLE LINES MORE QUICKLY MOREOVER THE ECONOMY'S GROWTH IS PUSHING MANUFACTURERS SUCH AS APPLIANCE MAKERS TO STEP UP PURCHASES OF MACHINE TOOLS THAT STRENGTH WAS DISPLAYED IN ORDERS TO THE NATION'S MACHINETOOL DISTRIBUTORS ACCORDING TO AN INDEX BASED ON ORDERS OVER A THREEYEAR PERIOD DISTRIBUTORS' ORDERS IN FEBRUARY ROSE 10 FROM JANUARY AND 11 FROM FEBRUARY 1993 THE AMERICAN MACHINE TOOL DISTRIBUTORS' ASSOCIATION SAID ACCORDING TO THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY DOMESTIC ORDERS FELL 24 IN FEBRUARY FROM JANUARY TO 2639 MILLION FROM 3494 MILLION BUT ROSE 7 FROM 2464 MILLION IN FEBRUARY 1993 ON A YEARTODATE BASIS DOMESTIC ORDERS JUMPED 58 TO 6133 MILLION FROM 3874 MILLION IN THE YEAREARLIER PERIOD ORDERS FOR EXPORT SOARED 56 IN FEBRUARY TO 169 MILLION FROM 108 MILLION IN JANUARY BUT JANUARY'S ORDERS WERE CONSIDERED LOW AND COMPARED WITH FEBRUARY 1993 ORDERS FOR EXPORT DROPPED 54 FROM 363 MILLION FOR 1994 THROUGH FEBRUARY ORDERS FOR EXPORT PLUNGED 61 TO 277 MILLION FROM 708 MILLION IN THE SAME PERIOD LAST YEAR 9403280146 940328 STANDARD COMMERCIAL CORP WILSON NC DIRECTORS OF STANDARD COMMERCIAL CORP REAFFIRMED THE COMPANY'S OPPOSITION TO A MERGER WITH DIBRELL BROTHERS INC DURING ITS MEETING FRIDAY THE BOARD SAID DIBRELL'S OVERTURES TO COMBINE THE COMPANIES ARE NOT IN THE BEST INTEREST OF OUR SHAREHOLDERS A YEAR AGO THE COMPANIES AGREED IN PRINCIPLE TO MERGE BUT STANDARD LATER TERMINATED THE AGREEMENT EARLIER THIS MONTH DIBRELL BASED IN DANVILLE VA ANNOUNCED IT HAD PURCHASED 62 OF STANDARD'S COMMON STOCK FOR 7 MILLION OVER SEVERAL MONTHS BOTH COMPANIES ARE INTERNATIONAL LEAFTOBACCO PROCESSORS AND DEALERS DIBRELL IS ALSO A DEALER OF FRESHCUT FLOWERS AND STANDARD ALSO PROCESSES WOOL 9403280145 940328 EUROPEAN FILMS BATTLE FOR THE BOX OFFICE DUTCH EPIC GOES HOLLYWOOD IN QUEST TO WIN OSCAR AND MARKET SUCCESS BY JIM PRESSLEY STAFF REPORTER OF THE WALL STREET JOURNAL OOSTVAARDERSPLASSEN THE NETHERLANDS STANDING CALFDEEP IN A POOL OF MUD BENEATH THE PROW OF A 17THCENTURY GALLEON THE FILM EXTRAS LOOK LIKE INFANTRYMEN IN A REMBRANDT PAINTING ACTION SHOUTS THE ASSISTANT DIRECTOR A SMOKE BOMB WREATHES THE SHIP IN A BLACK CLOUD ONE SOLDIER HURLS A TORCH INTO THE HOLD OTHERS LUMBER AWAY WITH TRUNKS JUGS AND OTHER BOOTY STOP CRIES THE ASSISTANT MOTIONING TOWARD A STOUT SOLDIER WHOSE FACE HAS TURNED CRIMSON HIS BREECHES HAVE FALLEN OFF SO IT GOES ON THE SET OF THE FLYING DUTCHMAN WHERE DUTCH DIRECTOR JOS STELLING AND HIS CREW ARE UNAPOLOGETICALLY OUT TO CONCOCT A BOXOFFICE HIT THAT PRODUCERS HOPE WILL WIN AN OSCAR IN 1996 DESPITE THE ACADEMY AWARD NOMINATIONS OF SEVERAL FILMS WITH EUROPEAN FUNDING INCLUDING THE FRENCHSUBSIDIZED HIT THE PIANO WHICH WON THREE AWARDS THE ODDS AGAINST HIM AND OTHER EUROPEAN MOVIE MAKERS ARE HIGH EUROPE'S FILM INDUSTRY FACES A CRISIS AS MORE AND MORE EUROPEAN CINEMAGOERS FLOCK TO HOLLYWOOD HITS THE US SHARE OF THE FEATUREFILM MARKET IN EUROPE HAS SHOT UP TO AN ESTIMATED 80 FROM 60 IN 1984 THAT'S MORE THAN POPCORN MONEY EUROPEANS NOW SPEND MORE THAN 10 BILLION A YEAR ON FEATURE FILMS BRITISH CONSULTANCY LONDON ECONOMICS ESTIMATES THE CRISIS HAS PROMPTED PROMINENT EUROPEAN FILM FIGURES INCLUDING DAVID PUTTNAM AND WIM WENDERS TO ARGUE THAT ONLY A STRONG DOSE OF REALITY CAN RESCUE EUROPEAN CINEMA FROM AN ARTHOUSE GHETTO TRAPPED IN SMALL HIGHBROW CINEMAS ALONG WITH OTHER MEMBERS OF THE EUROPEAN FILM ACADEMY THEY ARGUE THAT THE DETERIORATION OF EUROPE'S SHARE OF ITS OWN MARKET IS TOO SEVERE TO BE CURED JUST BY NEW INFUSIONS OF THE OLD NOSTRUMS GOVERNMENT GRANTS AND LOANS INSTEAD THEY PRESCRIBE TOUGH THERAPY MEANT TO WEAN FILMMAKERS FROM SUBSIDIES AND TO A MARKETORIENTED APPROACH A RECENT STUDY BY THE ACADEMY AND SCREEN INTERNATIONAL A TRADE JOURNAL CALLS FOR SCRIPTS WITH STRONGER STORY LINES MORE EUROPEAN ACTORS WITH FAMOUS NAMES AND FACES BIGGER BUDGETS AND BETTER MARKETING THE STUDY ALSO SUGGESTS THAT EUROPE SHOULD RESTRUCTURE THE NETWORK OF NATIONAL AND PANEUROPEAN SUBSIDIES THAT PROP UP THE BUSINESS THE FLYING DUTCHMAN HAS FOLLOWED THE PRESCRIPTION IT FEATURES A FINELY HONED SCRIPT A STAR ACTOR A BIGGER BUDGET MORE MARKETING AND A SLICE OF FUNDING FROM A BIG OUTSIDE INVESTOR INVESCO MIM PLC OF BRITAIN BUT THE PRODUCTION ALSO SHOWS HOW LONG AND PAINFUL THE PROPOSED CURE MAY BE SET IN THE 17TH CENTURY DURING SPAIN'S OCCUPATION OF THE LOW COUNTRIES THE FILM OFFERS A NEW VARIATION ON THE OLD MARITIME LEGEND OF A CAPTAIN DOOMED TO SAIL THE SEVEN SEAS UNTIL JUDGMENT DAY AS THE FILM CREW'S DAY BEGINS IN THIS NATURE RESERVE IN THE DUTCH PROVINCE OF FLEVOLAND SOME 40 EXTRAS DON BURLAPBROWN UNIFORMS IN A PARK BUILDING LINED WITH CANOES OUTSIDE A MAKEUP ARTIST COATS THEM WITH MUD BEFORE SENDING THEM DOWN AN ASPHALT LANE THAT LEADS THROUGH A FIELD OF REEDS TO THE SET THERE'S NO NEED TO RUSH FOR MR STELLING SEEMS IN NO HURRY A SHORT MAN WITH A GRIZZLED BEARD AND A DAB OF MUD ON HIS BALD SPOT HE WATCHES PATERNALLY AS HIS 45MEMBER CREW PLODS AROUND THE SWAMP IN BASEBALL CAPS AND WADERS ADJUSTING THE SET AND TESTING PYROTECHNICS A EUROPEAN FILM CREW HE CONFIDES LATER IS LIKE A BIG FAMILY THAT IS MAKING A THING YOU NEED THAT FAMILY FEELING THAT'S NOT SO EASY WITH THIS FILM HE CONCEDES FOR ONE THING HIS FAMILY IS AS BESIEGED AS THE HOUSE OF WINDSOR TODAY A GAGGLE OF JOURNALISTS MILLS AROUND THE SET WITH CAMERAS NOTEPADS AND VIDEOCAMS ALTHOUGH MANY EUROPEAN PRODUCERS ARE BEGINNING TO INCORPORATE SUCH MEDIA VISITS INTO THEIR MARKETING STRATEGY IT'S A NEW AND SLIGHTLY UNSETTLING EXPERIENCE FOR MR STELLING IF YOU HAVE TOO MUCH PUBLICITY TOO EARLY PEOPLE WILL THINK IT'S AN OLD FILM WHEN IT REACHES THE CINEMA HE WORRIES HE'S ESPECIALLY CONCERNED ABOUT THE PRESENCE OF PHOTOGRAPHERS ON THE SET THEY ARE STEALING FROM ME HE SAYS SUCH FEARS HIGHLIGHT THE WIDE GULF THAT SEPARATES EUROPE'S MODEST FILM MARKETING EFFORTS FROM THE GLOBAL BLITZ OF TSHIRTS TOYS AND ADVERTISING THAT SURROUND JURASSIC PARK AND OTHER US BLOCKBUSTERS FOR MOST EUROPEAN PRODUCERS THE KEY TO PROMOTION IS STILL A SCREENING AT BIG FILM FESTIVALS SUCH AS CANNES AND BERLIN WHICH ARE KNOWN IN THE BUSINESS AS MARKETS ADVERTISING DOESN'T START UNTIL THE FILM IS FINISHED A FACT PARTLY EXPLAINED BY HOW STATE SUBSIDIES WORK WITH THE PROMINENT EXCEPTION OF SPAIN PRODUCERS SAY MOST EU GOVERNMENTS REFUSE TO ALLOW STATE FUNDS TO BE SPENT ON MARKETING MR STELLING PACES UP AND DOWN IN THE MUD UP TO NOW HE HAS BEEN HIS OWN BOSS WORKING WITH LOW BUDGETS SMALL CREWS AND LITTLEKNOWN ACTORS HE HAS CREATED IMPRESSIONISTIC FILMS SUCH AS THE ILLUSIONIST AND THE POINTSMAN WHICH HAVE WON CRITICAL ACCLAIM BUT FAILED TO DRAW A BIG FOLLOWING OUTSIDE HOLLAND THEY USED NO SPECIAL EFFECTS LITTLE DIALOGUE AND RELIED MORE ON CHARACTER DEVELOPMENT THAN ON A TRADITIONAL PLOT THIS TIME AROUND THE BUDGET IS 200 MILLION BELGIAN FRANCS 58 MILLION SAYS BELGIAN COPRODUCER ALAIN KEYTSMAN ALTHOUGH THAT PALES IN COMPARISON TO THE 30 MILLION LAVISHED ON THE FRENCH FILM BASED ON EMILE ZOLA'S GERMINAL IT'S ROUGHLY ON PAR WITH THE BUDGET OF THE CRYING GAME THE QUIRKY BRITISH PRODUCTION THAT TOOK AMERICA BY STORM BUT THE BIGGER BUDGET MEANS MR STELLING IS NO LONGER THE MASTER OF ALL THAT HIS CAMERA SURVEYS THREE COPRODUCERS THE MEN WHO RAISED 77 OF THE BUDGET FROM SEVERAL STATE TELEVISION CHANNELS PRIVATE FIRMS AND SUBSIDIES IN BELGIUM GERMANY AND THE NETHERLANDS HOVER AT THE EDGE OF THE SET CHATTING WITH REPORTERS AND WATCHING MR STELLING'S EVERY MOVE JOS IS VERY ADAPTABLE SAYS MR KEYTSMAN HE RUBS HIS SCRUFFY BEARD AND POINTS UP AT THE MOCK SHIP WHERE A CARVED LION ARCHES ACROSS THE BOWSPRIT HE ALLOWED US TO BUILD HALF A SHIP INSTEAD OF A WHOLE ONE SCAFFOLDING ALONE MAKES UP THE STARBOARD SIDE OF THE REPLICA EAST INDIAN COMPANY TRADING VESSEL WHICH COST TWO MILLION BELGIAN FRANCS TO BUILD WHILE THAT MAY BE COMMON IN HOLLYWOOD MR KEYTSMAN SAYS MANY EUROPEAN DIRECTORS WOULD HAVE DEMANDED A COMPLETE SHIP HE ESTIMATES THAT THE COMPROMISE SAVED THEM THREE MILLION BELGIAN FRANCS BACK OUT ON THE MARSH ANOTHER SCENE IS TAKING SHAPE A MODEST ARMY A SCORE OF MEN WITH HELMETS PIKES AND HORSEDRAWN WAGONS MARCHES AWAY FROM THE CAMERA DRESSED IN RAGS THE DUTCHMAN PORTRAYED BY DUTCH ACTOR RENE GROOTHOF IS BOUND AND BLINDFOLDED TWO HELMETED GUARDS LEAD HIM AWAY BY ROPES LOOPED AROUND HIS NECK AS MR WIJNGAARDE LOOKS ON THE TALK TURNS AGAIN TO WHETHER FILM IS A BUSINESS OR AN ART IN THE STATES THIS IS CONSIDERED AN ART FILM HE OBSERVES RECALLING TALKS ABOUT THE FILM HE HAS HELD WITH NEW YORK MEDIA EXECUTIVES ALTHOUGH HE DECLINES TO GIVE MANY DETAILS OF THE DISCUSSIONS HE SAYS THE EXECUTIVES ARGUED THAT THE FILM'S HISTORICAL SETTING AND LANGUAGES WOULD PUT OFF US VIEWERS ANOTHER BARRIER TO THE FILM IS ITS LACK OF BIGNAME ACTORS THE STUDY BY THE EUROPEAN FILM ACADEMY AND SCREEN INTERNATIONAL ARGUES THAT HIGHPROFILE STARS PROVIDE A CRUCIAL LINK BETWEEN AN UNKNOWN NEW FILM AND THE PUBLIC IN A CLEAR ACKNOWLEDGMENT OF THIS THE FLYING DUTCHMAN MARKS THE FIRST FILM IN WHICH MR STELLING HAS BEEN WILLING TO WORK WITH A BIGNAME ACTOR IN THIS CASE NINO MANFREDI WHO HAS APPEARED IN AT LEAST 68 FILMS SINCE 1956 INCLUDING BREAD AND CHOCOLATE MR STELLING'S WILLINGNESS TO COMPROMISE BY USING A BIGNAME ACTOR WON'T NECESSARILY DRAW BIG CROWDS TO THE DUTCHMAN HOWEVER MR MANFREDI DRAWS CROWDS IN ITALY AND IS WELLSUITED TO HIS PIVOTAL SUPPORTING ROLE AS AN AGING ITALIAN TROUBADOUR BUT HE'S HARDLY A HOUSEHOLD NAME OUTSIDE SOUTHERN EUROPE AS EVENING APPROACHES THE CREW BEGINS HAULING AWAY PROPS AND EQUIPMENT MR KEYTSMAN THE BELGIAN PRODUCER LINGERS ON THE SET TO DISCUSS THE SUBSIDY PROBLEM I LOSE A LOT OF TIME LOOKING FOR MONEY HE SHRUGS WEARILY FUND RAISING IS A BIG PART OF HIS JOB HE CONCEDES BUT HE LONGS FOR THE DAY WHEN HE CAN SPEND LESS TIME RAISING A BUDGET AND MORE TIME ON FIGURING OUT HOW TO SPEND THE MONEY EFFECTIVELY HE'S ALSO TIRED OF CUTTING THROUGH RED TAPE ESPECIALLY AT A TIME WHEN BELGIAN SUBSIDIES ARE DECLINING AND FILM COSTS ARE RISING HE AND HIS COLLEAGUES ARE SUPPLEMENTING THE BUDGET OF THE FLYING DUTCHMAN WITH MONEY FROM PRIVATE SOURCES ALTHOUGH 57 OF THE BUDGET STILL COMES FROM SUBSIDIES AND CONTRACTS WITH STATERUN TELEVISION CHANNELS INVESCO IS PUTTING UP 10 WHILE MR STELLING AND THE THREE COPRODUCERS ARE PICKING UP A COMBINED 23 OR 46 MILLION BELGIAN FRANCS MR KEYTSMAN EXPECTS A BIG FILM DISTRIBUTOR TO PICK UP THE REMAINING 10 IN EXCHANGE FOR WORLD DISTRIBUTION RIGHTS THE DAY THAT I DON'T HAVE TO GET SUBSIDIES TO GET A FILM MADE HE INSISTS I WILL DO IT BUT WHEN THAT DAY COMES HE MAY ASK THE DIRECTOR FOR A QUID PRO QUO I WANT THE FINAL CUT HE DECLARES MAUREEN KLINE IN MILAN CONTRIBUTED TO THIS ARTICLE 9403280144 940328 SOUTHERN CO UNIT INVESTMENT SOUTHERN CO SAID ITS SOUTHERN ELECTRIC INTERNATIONAL UNIT IN PARTNERSHIP WITH A SUBSIDIARY OF AMOCO PRODUCTION CO WILL INVEST MORE THAN 100 MILLION TO PURCHASE A 49 STAKE IN POWER GENERATION PLANTS IN TRINIDAD AND TOBAGO SPECIFIC TERMS ARE BEING NEGOTIATED UNDER THE AGREEMENT THE TRINIDAD AND TOBAGO ELECTRICITY COMMISSIONS WILL RETAIN A 51 INTEREST IN ITS GENERATING FACILITIES WHILE SOUTHERN ELECTRIC WOULD OPERATE AND MAINTAIN THE PLANTS 9403280143 940328 COKE UNIT TO APPEAL ON TAXES ATLANTA COCACOLA CO'S JAPANESE SUBSIDIARY SAID IT WILL APPEAL JAPAN'S DEMAND FOR 140 MILLION IN BACK TAXES AND SAID ANY DECISION ON THE MATTER WOULD HAVE A NEGLIGIBLE FINANCIAL IMPACT THE NATIONAL TAX ADMINISTRATION OF JAPAN CLAIMS THAT ROYALTIES PAID BY THE COCACOLA SUBSIDIARY TO ITS PARENT COMPANY FROM 1990 TO 1992 WERE TOO HIGH AND IT DEMANDED PAYMENT IN ADDITIONAL TAXES THE MATTER WILL BE REVIEWED UNDER THE TREATY SIGNED BY US AND JAPANESE TAX AUTHORITIES A COCACOLA REPRESENTATIVE SAID THAT IF JAPAN PREVAILS THE TAXES WOULD BE SHIFTED FROM THE US GOVERNMENT TO JAPAN SO THERE WOULDN'T BE ANY REAL FINANCIAL IMPACT ON THE COMPANY 9403280142 940328 INTERNATIONAL WORLD WIRE COMPILED BY CATHERINE BOLGAR PROSPECTS FOR THE EUROPEAN UNION TO MEET ITS JAN 1 TIMETABLE FOR ADDING FOUR MEMBERS BRIGHTENED AS EU FOREIGN MINISTERS PUT FORWARD A COMPROMISE FORMULA FOR RESOLVING A DISPUTE OVER VOTING RULES A DRAFT DEAL CALLS FOR THE NUMBER OF VOTES NEEDED TO BLOCK LEGISLATION IN THE EU COUNCIL OF MINISTERS TO BE INCREASED TO 27 FROM 23 TO REFLECT AN ENLARGED UNION BUT IT ALLOWS MEASURES TO BE DELAYED FOR A REASONABLE PERIOD IF 23 OPPOSING VOTES ARE CAST IF THE FOUR NEW APPLICANTS SWEDEN FINLAND NORWAY AND AUSTRIA JOIN THE UNION THE TOTAL NUMBER OF VOTES IN THE COUNCIL WOULD RISE TO 90 FROM 76 THE PLAN MUST BE APPROVED BY NATIONAL GOVERNMENT BEFORE IT CAN BE FINALIZED AND THE DEAL FACES RESISTANCE FROM SKEPTICAL MEMBERS OF BRITAIN'S CONSERVATIVE PARTY WHO HAVE INSISTED ON FREEZING THE SOCALLED BLOCKING MINORITY AT 23 VOTES GOVERNMENTS WERE ASKED TO REPORT THEIR VIEWS BY TOMORROW AND EU AMBASSADORS WILL MEET IN BRUSSELS ON WEDNESDAY TO TRY TO WRAP UP AN AGREEMENT BRITAIN AND SPAIN HAVE SOUGHT TO KEEP THE NUMBER AT 23 VOTES IN ORDER TO PRESERVE THE ABILITY OF TWO LARGE AND ONE SMALL NATION TO VETO EU LEGISLATION VIETNAM WILL OFFER FOREIGN COMPANIES NEW DRILLING AND PRODUCTION CONCESSIONS AROUND ITS MOST PRODUCTIVE OIL FIELD THE STATE OIL MONOPOLY SAID THE GOVERNMENT WILL OFFER FIVEYEAR EXPLORATION RIGHTS AND 20YEAR PRODUCTION RIGHTS AROUND THE WHITE TIGER FIELD OFF VIETNAM'S SOUTHERN COAST OPERATORS MUST TURN OVER 25 TO 40 OF THEIR OUTPUT TO THE GOVERNMENT AS A ROYALTY AND GIVE 30 OF THE REMAINDER TO THE STATE OIL COMPANY A JOINT VENTURE BETWEEN VIETNAM AND THE FORMER SOVIET UNION BEGAN DEVELOPING THE WHITE TIGER FIELD IN 1986 BUT LACKS FINANCES FOR FURTHER WORK ITALY SWUNG TO A TRADE SURPLUS OF 196 BILLION IN 1993 FROM A DEFICIT OF 764 BILLION A YEAR EARLIER ITALY'S MERCHANDISE TRADE BALANCE WITH THE OTHER 11 MEMBERS OF THE EUROPEAN UNION SWUNG TO A SURPLUS OF 5632 MILLION IN DECEMBER FROM A DEFICIT OF 290 MILLION A YEAR EARLIER THE PROVISIONAL FIGURES WHICH WEREN'T SEASONALLY ADJUSTED SHOW THAT ALL MAJOR SECTORS EXCEPT ENERGY INCREASED THEIR PENETRATION OF FOREIGN MARKETS IN 1993 EXPORTS TO EU NATIONS ROSE 11 AND IMPORTS FELL 61 THE EUROPEAN UNION IS READY TO FINANCE THE CONSTRUCTION OF ROADS AND A BRIDGE BETWEEN BULGARIA AND TWO NEIGHBORS THE EU HAS ALLOCATED 288 MILLION FOR ROADS BETWEEN GREECE AND BULGARIA AND IS PREPARED TO FINANCE A NEW BRIDGE ACROSS THE DANUBE RIVER BETWEEN BULGARIA AND ROMANIA THE SINGLE BRIDGE AND FERRY LINE THAT NOW LINKS THOSE COUNTRIES IS OVERBURDENED BY TRAFFIC THAT MUST TRAVEL AROUND NEIGHBORING YUGOSLAVIA WHICH IS UNDER UNITED NATIONS SANCTIONS FOR ITS ROLE IN THE WAR IN BOSNIAHERZEGOVINA CHINA HAS 16 TIMES MORE SINGLE MEN THAN UNMARRIED WOMEN RAISING CONCERNS ABOUT CARE AND HOUSING WHEN THE BACHELOR ARMY BECOMES ELDERLY THE OFFICIAL CHINA INFORMATION NEWSPAPER REPORTED CHINA HAS 74 MILLION UNMARRIED MEN BETWEEN THE AGES OF 30 AND 44 WHILE SINGLE WOMEN IN THAT AGE GROUP NUMBER FEWER THAN HALF A MILLION TRADITIONAL FAVORITISM OF MALE OFFSPRING HAS COMBINED WITH THE STATE'S ONECHILD POLICY TO REDUCE THE NUMBER OF BABY GIRLS IVORY COAST SAID IT RESCHEDULED ITS OFFICIAL EXTERNAL DEBT UNDER FAVORABLE TERMS THE RESCHEDULING BY THE PARIS CLUB A GROUP OF WESTERN CREDITOR COUNTRIES IS DESIGNED TO EASE IVORY COAST'S ADJUSTMENT TO THE 50 DEVALUATION OF THE CFA AFRICAN FRANC WHICH WAS APPROVED IN JANUARY BY COUNTRIES IN FRENCHSPEAKING AFRICA THE IVORY COAST PACT FOLLOWS SIMILAR DEBT RELIEF ARRANGEMENTS MADE EARLIER THIS MONTH FOR SENEGAL AND NIGER INDUSTRIALIZED NATIONS AGREED TO STOP ALL DUMPING OF TOXIC WASTE IN DEVELOPING COUNTRIES ENDING A DISPUTE ON THE SCOPE OF THE 1990 BASEL CONVENTION GOVERNING INTERNATIONAL MOVEMENT OF HAZARDOUS WASTES THE BAN WAS APPROVED AT AN INTERNATIONAL CONFERENCE OF THE 64 STATES THAT HAVE RATIFIED THE CONVENTION THEY PREVIOUSLY AGREED IN PRINCIPLE THAT 24 WEALTHY NATIONS SHOULD STOP EXPORTING TOXIC WASTE TO DEVELOPING COUNTRIES FOR INCINERATION OR BURIAL THE NEW ACCORD MADE SUCH A BAN EFFECTIVE IMMEDIATELY THE BIGGER ISSUE CONCERNED WASTE SENT TO DEVELOPING COUNTRIES FOR RECYCLING CONSIDERED A BACKDOOR ENTRY FOR HAZARDOUS WASTES SUCH AS MERCURY LEADACID BATTERIES AND SOME PLASTICS SUCH EXPORTS WILL BECOME ILLEGAL ON DEC 31 1997 THE EUROPEAN UNION SUPPORTED THE BAN WITH CANADA AUSTRALIA AND JAPAN FOLLOWING SUIT THE US WHICH HASN'T RATIFIED THE CONVENTION ATTENDED THE INTERNATIONAL MEETING AS AN OBSERVER A UNITED NATIONS CONFERENCE PRESSED TAIWAN TO STOP FLOUTING A BAN ON THE SALE OF TIGER BONES AND RHINOCEROS HORNS BUT BACKED OFF THREATS OF TRADE SANCTIONS AGAINST CHINA OVER THE SAME ALLEGATIONS PRESIDENT CLINTON IS TO DECIDE THIS WEEK WHETHER TO IMPOSE SANCTIONS ON THE ASIAN NATIONS UNDER US LAWS PROTECTING ANIMALS IN DANGER OF EXTINCTION A COURT IN HUNGARY ACQUITTED THE OWNER OF THE MARXIM PIZZA RESTAURANT OF CHARGES ITS MOCK COMMUNIST MEMORABILIA VIOLATED A BAN ON TOTALITARIAN SYMBOLS 9403280141 940328 SOME STATES RESIST CORPORATE HOGS BUT THEIR FARMERS STILL FACE THREAT BY SCOTT KILMAN CORPORATE FARMS FACE DEEP MISTRUST IN THE MIDWEST SOME STATES HAVE CURBED CORPORATE OWNERSHIP OF FARMLAND SINCE THE DEPRESSION IOWA AND KANSAS WON'T LET MEATPACKERS RAISE THEIR OWN LIVESTOCK AS CHICKEN COMPANY TYSON FOODS AND OTHERS PUSH INTO THE HOG BUSINESS A LOT OF SMALL FARMERS ARE AFRAID THAT TYSON WILL DO TO HOG FARMING WHAT WALMART DID TO THE SMALL STORE ON THE SQUARE SAYS CHRIS HURT A PURDUE UNIVERSITY ECONOMIST IOWA'S ANTICORPORATEFARMING LAWS DIDN'T APPLY TO PREMIUM STANDARD FARMS INC WHEN ITS FOUNDERS ANNOUNCED PLANS FOR A 4800HOG COMPLEX IN 1989 BUT IOWA BLOCKED IT BY DENYING CONSTRUCTION PERMITS SAYING THE SITE WAS TOO NEAR A PARK SO PREMIUM STANDARD WENT TO MISSOURI AND THE TOWN IT CHOSE PRINCETON IS THRIVING THE COMPANY'S WORK FORCE IS EXPECTED TO HIT 1500 SOON JOBS IN THE BARNS PAY FROM 13000 TO 45000 A YEAR PROPERTY VALUES IN PRINCETON THE SEAT OF A COUNTY WHOSE POPULATION SHRANK BY ONEFIFTH DURING THE 1980S ARE NOW RISING 15 A YEAR CHURCHES THAT MET TWICE A MONTH ARE HOLDING WEEKLY SERVICES AGAIN PREMIUM STANDARD KEEPS PEOPLE HAPPY BY SUPPLYING FIREWORKS ON JULY 4 AND CEMENT TO FIX DOWNTOWN SIDEWALKS WE'RE GLAD WE GOT WHAT IOWA DIDN'T WANT SAYS JACK TUCKER A LOCAL BANKER NOW KANSAS IS CONSIDERING LEGALIZING CORPORATE HOG FARMS IN OKLAHOMA WHICH EASED CURBS IN 1991 SEABOARD CORP OF SHAWNEE MISSION KAN IS OPENING A PACKING PLANT AND BUILDING A HERD OF 14000 SOWS IN CATTLE COUNTRY SOME IOWA OFFICIALS DISMISS PREMIUM STANDARD AS A FLASH IN THE PAN THOSE PEOPLE AREN'T FARMERS THEY'RE ONLY INTERESTED IN MAKING MONEY ON THEIR MONEY SCOFFS DALE COCHRAN THE STATE AGRICULTURE SECRETARY I THINK IT'S POSSIBLE THAT PRINCETON WILL BECOME A GHOST TOWN STILL MIDWESTERN HOG FARMERS FEEL PRESSURE TO GET BIGGER OR GET OUT MANY AFTER THE FARM CRISIS A DECADE AGO DREAD BORROWING HUNDREDS OF THOUSANDS OF DOLLARS TO BUILD A MODERN HOG SETUP THOSE TAKING THE PLUNGE ARE MOSTLY YOUNGER AND MORE WILLING TO FACE A DIFFERENT WORLD JON CASPERS OF SWALEDALE IOWA 39 EXPANDED HIS BREEDING HERD 33 AND NOW SELLS 20000 HOGS A YEAR THERE'S A LOT OF TRADITION INVOLVED WITH BEING A PIG FARMER HE SAYS BUT COMPETING IN THE FUTURE MEANS BEING BIGGER AND HAVING CLOSER TIES WITH A MEATPACKER SEE RELATED ARTICLE POWER PORK CORPORATIONS BEGIN TO TURN HOG BUSINESS INTO AN ASSEMBLY LINE LEAN UNIFORM PIGS POP OUT AND ARE ROBOTICALLY CUT INTO NEAT BRANDED CHOPS SHORT FERTILE LIFE OF A SOW WSJ MARCH 28 1994 9403280140 940328 WHO'S NEWS BETA WELL SERVICE INC BETA WELL SERVICE INC LEDUC ALBERTA THE OILFIELD SERVICES CONCERN NAMED TERRY DOYLE 49 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE APRIL 1 BETA SAID MR DOYLE HAS BEEN A CONSULTANT IN HOUSTON SINCE NOVEMBER 1993 AS PRESIDENT HE WILL SUCCEED WILLIAM GORDICA 61 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AS CHIEF OPERATING OFFICER HE WILL SUCCEED ROBERT DOBSON 49 WHO WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 9403280139 940328 INTERNATIONAL NISSAN PLANS MORE PURCHASES OF US PARTS BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO NISSAN MOTOR CO RELEASED PLANS FRIDAY TO INCREASE ITS PURCHASES OF USMADE AUTO PARTS IN A MOVE AIMED AT SATISFYING AMERICAN DEMANDS THAT JAPAN SET NUMERICAL GOALS FOR BRINGING DOWN ITS HUGE BILATERAL TRADE SURPLUS NISSAN SAID THAT BY THE YEAR ENDING MARCH 31 1998 IT INTENDS TO BOOST PROCUREMENT OF USMADE CAR PARTS FOR ITS PLANTS IN THE US TO AN ANNUAL TOTAL OF 34 BILLION AN INCREASE OF 75 OVER THE YEAR ENDED MARCH 31 1993 IT ALSO SAID IT PLANS TO INCREASE IMPORTS OF FOREIGNMADE CAR PARTS MACHINERY AND VEHICLES BY 70 OVER THE SAME FIVEYEAR PERIOD TO 17 BILLION NISSAN'S ANNOUNCEMENT COMES A MONTH AFTER THE COLLAPSE OF THE FRAMEWORK TALKS THE MOST RECENT ROUND OF NEGOTIATIONS AIMED AT REDUCING JAPAN'S MAMMOTH BILATERAL TRADE SURPLUS THE TALKS BROKE DOWN FOLLOWING TOKYO'S REFUSAL TO ACCEPT NUMERICAL MEASUREMENTS OF US PENETRATION OF JAPAN'S MARKETS THE US HAS SAID IT IS NOW UP TO JAPAN TO COME UP WITH MEASURES TO NARROW ITS SURPLUS WITH THE US WHICH BY JAPAN'S COUNT EXCEEDED 50 BILLION IN 1993 TRADE IN AUTOS AND AUTO PARTS WHICH COMPRISES THE LION'S SHARE OF THE SURPLUS HAS BEEN ONE OF THE MOST CONTENTIOUS ISSUES IN THE BILATERAL TRADE FIGHT TOYOTA MOTOR CORP WAS SCHEDULED TO UNVEIL A PLAN SIMILAR TO NISSAN'S LATER TODAY AND OTHER JAPANESE AUTO MAKERS ARE EXPECTED TO FOLLOW SUIT THE COUNTRY'S TOP AUTO PRODUCERS HAVE SET A GOAL TO BUY A COMBINED 19 BILLION WORTH OF US AUTO PARTS A YEAR BY 1995 AND THE US HAS PUSHED THEM TO PUBLISH PLANS FOR SUCCEEDING YEARS THE AUTO MAKERS HAD RESISTED SETTING NEW GOALS FOR FEAR OF INVITING US RETALIATION SHOULD THEY FAIL TO MEET THEM NISSAN THE FIRST TO TAKE THE PLUNGE SAID THAT ITS NEW GOALS ARE NONBINDING JAPAN'S GOVERNMENT MEANWHILE PLANS TO ANNOUNCE AS EARLY AS TOMORROW SOME UNILATERAL MARKETOPENING MEASURES INCLUDING DEREGULATION AND IMPORTPROMOTION PLANS TOKYO ALSO MAY DISCLOSE PLANS TO BOOST GOVERNMENT PROCUREMENT OF FOREIGN GOODS AND TO IMPROVE FOREIGN ACCESS TO JAPAN'S INSURANCE MARKET TWO AREAS THAT FALL WITHIN THE FRAMEWORK OF THE STALLED TALKS BUT JAPANESE OFFICIALS LATELY HAVE BEEN TRYING TO PLAY DOWN EXPECTATIONS FOR THE PACKAGE NOTING THAT JAPAN WOULD HAVE DELIVERED MEASURES TO AMERICA'S LIKING A MONTH AGO IF SUCH PLANS WERE FEASIBLE ONE AREA WHERE TOKYO MAY DISAPPOINT WASHINGTON IS MACROECONOMIC POLICY JAPANESE LEGISLATORS AND BUSINESS LEADERS HAVE BEEN URGING THE GOVERNMENT TO SET STIMULATIVE FISCALPOLICY GOALS INCLUDING THE IDEA OF RAISING JAPAN'S 430 TRILLION YEN 41 TRILLION TARGET FOR PUBLIC WORKS SPENDING THIS DECADE BOOSTING PUBLIC SPENDING WOULD SPUR DOMESTIC DEMAND AND THUS IMPORTS BUT SOME POLITICIANS NOW SAY SUBSTANTIVE FISCAL PLEDGES PROBABLY WON'T BE FORTHCOMING I THINK IT'S DIFFICULT TO COME UP WITH NUMBERS BUT SOME SORT OF DIRECTION OR INTENTION MAY BE STATED SAID KOZO YAMAMOTO A COALITION LEGISLATOR INVOLVED IN SHAPING ECONOMIC POLICY PLEDGING GREATER OUTLAYS WOULD RAISE THE QUESTION OF HOW TO FINANCE THEM ONE OF THE THORNIEST ISSUES IN JAPANESE POLITICS WHAT'S MORE AUTO INDUSTRY EXECUTIVES ARE QUICK TO POINT OUT THAT ANY PLANS TO BOOST PROCUREMENT OF FOREIGN GOODS ARE ONLY TARGETS AND MAY BE SUBJECT TO CHANGE NISSAN STRESSED THE NONBINDING NATURE OF ITS NEW GOALS THIS IS ONLY A BUSINESS PLAN SAID NISSAN SPOKESMAN TAKASHI MATSUSHITA WHETHER OR NOT WE MAKE THAT PLAN DEPENDS ON THE CONDITIONS OF THE MARKET 9403280138 940328 ECONOMY BANKS AND INSURERS STEP UP BULK SALES OF SOURED REALESTATE LOANS AND ASSETS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL AFTER SEVERAL YEARS OF WAITING FOR PRICES TO RISE BANKS AND INSURANCE COMPANIES ARE NOW FLOODING THE MARKET WITH POOLS OF SOURED REALESTATE LOANS AND PROPERTIES TRYING TO TAKE ADVANTAGE OF WHAT MANY SAY HAS BECOME A SELLER'S MARKET WE'RE SEEING AS MUCH QUALITY PRODUCT NOW AS WE'VE EVER SEEN SAID JOSEPH ROBERT JR OF JE ROBERT COS ALEXANDRIA VA AN EARLY BULKBUYER OF DISTRESSED ASSETS I THINK YOU'RE GOING TO SEE A DELUGE OF BULK OFFERINGS OVER THE NEXT YEAR CHASE MANHATTAN CORP MIDLANTIC CORP CALIFORNIA FEDERAL BANK PRUDENTIAL LIFE INSURANCE CO OF AMERICA AND KENTUCKY CENTRAL LIFE INSURANCE CO ARE AMONG THE LENDERS CURRENTLY SELLING LARGE PORTFOLIOS BANKAMERICA CORP AND TRAVELERS INC WHICH HAVE ALREADY SOLD LARGE PACKAGES ARE SAID TO BE MULLING NEW OFFERINGS AS ARE BANK OF BOSTON AND CHEMICAL BANK A CONFLUENCE OF FACTORS IS MOTIVATING SELLERS PRICES ARE RISING COMPETITION AMONG BUYERS IS KEEN REGULATORS ARE PRESSURING BANKS AND INSURERS TO SELL AND MANY OF THEM HAVE FINALLY WRITTEN THE ASSETS DOWN TO MARKET VALUE PREVIOUSLY MANY VOWED TO MINIMIZE THEIR LOSSES BY HOLDING THE ASSETS TO SELL ONE BY ONE AFTER PRICES IMPROVED THE OFFERINGS ARE FILLING A VOID IN THE MARKET LEFT BY THE RESOLUTION TRUST CORP'S DECISION LAST YEAR TO STOP SELLING SUCH LARGE PORTFOLIOS BECAUSE ONLY A COUPLE OF DOZEN HEAVILY CAPITALIZED INVESTORS COULD AFFORD TO COMPETE FOR THEM FOUR MONTHS AGO I THOUGHT THE BUSINESS WAS DRYING UP SAID ANDREW DAVIDOFF A PARTNER IN NEW YORKBASED EMMIS & CO ANOTHER VETERAN BULK BUYER NOW WE SEEM TO BE GETTING THE SECOND WAVE LAST THURSDAY CHASE CLOSED BIDDING ON A POOL OF NONPERFORMING REALESTATE LOANS WITH AN ORIGINAL FACE VALUE OF 480 MILLION A GROUP LED BY JE ROBERT CO AND A GOLDMAN SACHS & CO INVESTMENT FUND WAS THE HIGH BIDDER BUT CHASE SAID IT WAS NOT YET PREPARED TO ANNOUNCE THE BUYER I THINK THE PRICING WENT UP OVER THE COURSE OF THE LAST YEAR AS MORE CAPITAL WAS ATTRACTED TO THE MARKET AND ALSO ON THE BELIEF THAT REALESTATE FUNDAMENTALS WERE IMPROVING SAID HUGH BALLOCH WHO HEADS THE FIRM'S REALESTATE INVESTMENT BANKING OPERATION BANKS AND INSURANCE COMPANIES WHICH ARE UNDER PRESSURE FROM REGULATORS TO INCREASE THEIR RESERVES AGAINST NONPERFORMING REAL ESTATE HAVE FOUND THAT RISING CORPORATE PROFITS ARE MAKING THE DECISION EASIER BANKS AND INSURERS HAVE BEEN RECOGNIZING THEIR LOSSES AND RESERVING AGAINST THEM IN INCREMENTS AS THEIR EARNINGS IMPROVED EXPLAINED MR ROBERT THAT'S LEFT THEM IN A FAR BETTER POSITION TO SELL WITHOUT TAKING LOSSES THE PRESENCE OF MORE WELLCAPITALIZED BUYERS IN THE MARKET HAS ENCOURAGED SALES A LOT OF PEOPLE HAVE RAISED A LOT OF MONEY SAYS ONE REALESTATE ADVISER TO BANKS AND INSURANCE COMPANIES IF YOU HAVE A REASONABLE PRODUCT AND A GOOD SELLING PROCESS THERE'S AN INCREDIBLE AMOUNT OF COMPETITION OUT THERE RICHARD GUNTHEL HEAD OF REAL ESTATE AT BANKERS TRUST NEW YORK CORP WHICH HAS BOUGHT PORTFOLIOS AS WELL AS ADVISED SELLERS SAID PRICES ARE CLEARLY RISING SHARPER COMPETITION ISN'T THE ONLY REASON THE PRICES ARE MUCH HIGHER BECAUSE THE RISK IS LESS SAID THOMAS BARRACK JR PRESIDENT AND CHIEF EXECUTIVE OF LOS ANGELESBASED COLONY CAPITAL INC AMONG THE EARLIEST BUYERS OF DISTRESSED PORTFOLIOS BUYERS CAN NOW CALCULATE WITH FAR MORE CERTAINTY HOW MUCH THEY WILL EARN ON SUCH PORTFOLIOS AND CONSEQUENTLY ARE NOT DEMANDING SUCH STEEP DISCOUNTS THE EQUITY RETURNS THAT FOLKS ARE WILLING TO ACCEPT ARE MORE REASONABLE SAID MR BARRACK THE 30 AND HIGHER PROFIT MARGINS TARGETED BY EARLY BUYERS HAVE SHRUNKEN TOWARD 20 HE SAID THIS MATURATION OF THE MARKET HAS AN ADDED BENEFIT TO THE BANKS AND INSURERS WITH BLOATED REALESTATE PORTFOLIOS THE SELLERS ARE NO LONGER DUMPING THEM INTO A VACUUM MARKET SAID MR BARRACK THEY KNOW WITHIN 5 WHAT BIDDERS WILL BID ON A PORTFOLIO BUYERS ARE BIDDING MORE AGGRESSIVELY BECAUSE THERE ARE MORE OPTIONS FOR RESELLING THE ASSETS AT A PROFIT THAN WERE AVAILABLE TO BUYERS JUST A COUPLE OF YEARS AGO MANY OF THE REALESTATE COMPANIES THAT HAVE GONE PUBLIC AS REALESTATE INVESTMENT TRUSTS OVER THE PAST YEAR AND A HALF ARE LOOKING TO BUY PROPERTY PARTICULARLY APARTMENTS AND BULK BUYERS HAVE BEEN WILLING SELLERS THE GROWTH OF COMMERCIAL MORTGAGE SECURITIZATION HAS PROVIDED BULK BUYERS WITH ANOTHER OPTION FOR TURNING OVER THEIR ASSETS BIG BUYERS LIKE BANKERS TRUST HAVE DISCOVERED YET ANOTHER WAY TO GET RID OF BULK PURCHASES HAVE BULK SALES DRAWING FROM THREE DIFFERENT POOLS THEY BOUGHT FROM THE RESOLUTION TRUST CORP BANKERS TRUST HAS PUT A 90 MILLION POOL OF NONPERFORMING HOTEL LOANS ON THE MARKET 9403280137 940316 LETTERS TO THE EDITOR NO ONE'S GOING TO KILL DRUG RESEARCH I AM RESPONDING TO TWO FEB 16 EDITORIALPAGE ARTICLES UNDER THE HEADLINE KILLING DRUG RESEARCH KILLS PEOPLE BY RICHARD KOGAN PRESIDENT AND CHIEF OPERATING OFFICER OF SCHERINGPLOUGH AND JD KLEINKE A PRINCIPAL WITH HCIA A HEALTH CARE DATAANALYSIS AND RESEARCH FIRM BOTH INDICATED THAT PRESIDENT CLINTON'S ADVISORY COUNCIL ON BREAKTHROUGH DRUGS CONTAINED IN THE HEALTH SECURITY ACT WOULD KILL THE MANUFACTURERS' FINANCIAL INCENTIVE TO SEARCH FOR AND DEVELOP BREAKTHROUGH DRUGS I AM CONCERNED THAT SUCH EMOTIONBASED LETTERS DO NOT PROPERLY INFORM THE PUBLIC OR POLICY MAKERS R&D SPENDING FOR BREAKTHROUGH DRUGS WILL ALWAYS BE THE PRIORITY OF PHARMACEUTICAL MANUFACTURERS BREAKTHROUGH DRUGS ARE THE VERY LIFEBLOOD OF MANUFACTURERS WHOSE FORTUNES RISE AND FALL ON THESE DISCOVERIES ACCORDING TO THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION MANUFACTURERS INCREASED THEIR SPENDING ON R&D LAST YEAR EVEN THOUGH THEIR PRICES WERE INCREASING AT A SUBSTANTIALLY LOWER RATE THAN IN PREVIOUS YEARS THEREFORE MANUFACTURERS HAVE SHOWN BY THEIR ACTIONS THAT THERE IS NO DIRECT RELATIONSHIP BETWEEN HIGH PRICES AND R&D SPENDING ECONOMICS BELIE MR KLEINKE'S ASSERTION THAT GOVERNMENTMANDATED PRICE CONTROLS PROMISE PRODUCING LOWRISK COMMODITIES INDISTINGUISHABLE FROM EACH OTHER THERE IS INSUFFICIENT RETURN ON INVESTMENT FOR A MANUFACTURER TO BECOME A PRODUCER OF ONLY INTERCHANGEABLE COMMODITIES THE GOALS OF THE PRESIDENT'S ADVISORY COUNCIL ON BREAKTHROUGH DRUGS ARE LAUDABLE THE COUNCIL'S PRIMARY GOAL IS TO EXAMINE THE REASONABLENESS OF LAUNCH PRICES BY COMPARING TAXPAYER CONTRIBUTIONS TO RESEARCH AND INTERNATIONAL PRICING THE COUNCIL ALSO HELPS DRUG PURCHASERS MAKE INFORMED DECISIONS THIS WILL HELP ASSURE THAT TAXPAYERS' MONEY IS WISELY SPENT CONSERVING REVENUES TO PURCHASE MORE HEALTH CARE LEADS TO THE OPPOSITE CONCLUSION OF MR KOGAN'S LETTER ENTITLED CLINTON RATIONS FUTURE CURES FOR THE GOVERNMENT NOT TO ASSURE REASONABLE PRICES WOULD BE IRRESPONSIBLE THE FUNCTIONS OF THE ADVISORY COUNCIL ARE VERY SIMILAR TO THE CURRENT MARKETCREATED REVIEW COMMITTEES THAT HAVE EXISTED FOR YEARS IN HOSPITALS AND HMOS THE PHARMACY AND THERAPEUTICS COMMITTEES PHYSICIAN AND PHARMACIST MEMBERS OF THE P&T COMMITTEES REVIEW THE RELATIVE VALUE OF DRUGS BEFORE MAKING A DECISION TO PURCHASE MANY OF THE PINK SLIPS REFERRED TO IN MR KLEINKE'S ARTICLE WENT TO PEOPLE WHO WERE HIRED TO SELL AND MARKET ONLY MARGINALLY DIFFERENT DRUGS P&T COMMITTEES HAVE DECREASED THE DEMAND FOR THESE INDISTINGUISHABLE COMMODITIES AND THE NEED FOR MANY OF THE DRUG MANUFACTURERS' SALESPEOPLE WHO SOLD SUCH PRODUCTS ARTICLES THAT ATTRIBUTE VALUE TO THE DRUG PRODUCT ALONE ARE MISLEADING IF THEY DO NOT ADDRESS THE IMPORTANCE OF PROFESSIONAL PHARMACY SERVICES THAT OFTEN NEED TO BE PROVIDED WITH THE PRODUCT TO ASSURE THAT HEALTHCARE COSTS WILL BE REDUCED TO THE GREATEST EXTENT POSSIBLE ALTHOUGH A DRUG OFTEN HAS THE POTENTIAL TO LOWER HEALTHCARE COSTS THOSE SAVINGS WILL NOT BE REALIZED UNLESS PHYSICIANS AND PHARMACISTS HELP ASSURE THAT THE PATIENT TAKES THE DRUG PROPERLY PATIENT COMPLIANCE IS ESSENTIAL TO MAXIMIZING THE POTENTIAL VALUE OF A DRUG IN 1990 THE FEDERAL GOVERNMENT ACKNOWLEDGED THE VALUE OF PHARMACY SERVICES BY REQUIRING THAT PHARMACISTS PROVIDE DRUGUTILIZATION REVIEW AND COUNSELING TO MEDICAID RECIPIENTS VIRTUALLY ALL STATE BOARDS OF PHARMACY TO AVOID CREATING TWO LEVELS OF PHARMACY CARE SUBSEQUENTLY EXPANDED THESE MEDICAID MANDATES TO ALL PATIENTS THE POTENTIAL VALUE OF PRESCRIPTION MEDICATIONS ARE REALIZED WHEN THE PHARMACIST WORKS CLOSELY WITH THE PHYSICIAN AND THE PATIENT TO ENSURE OPTIMAL DRUGTHERAPY COMPLIANCE ONLY THEN WILL PHARMACY SERVICES SAVE PEOPLES' LIVES IMPROVE THE QUALITY OF CARE AND SAVE MONEY SEE RELATED LETTER LETTERS TO THE EDITOR GENERIC DRUG PROFITS WSJ MARCH 28 1994 9403160173 YY94 MM03 9403280136 940328 PAYROLL POLICY UNLIKE REST OF EUROPE BRITAIN IS CREATING JOBS BUT THEY PAY POORLY CONSERVATIVE CURBS ON LABOR REDUCE EMPLOYERS' COSTS AND FACILITATE EXPANSION RISING PRESSURE ON CONTINENT BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL GLASGOW SCOTLAND SOMETHING UNUSUAL IS POPPING UP IN THIS LONGDEPRESSED INDUSTRIAL CITY LATELY JOBS THE KVAERNER GOVAN LTD SHIPYARD ON THE VERGE OF CLOSING A FEW YEARS AGO HAS ADDED 300 EMPLOYEES CLAREMONT GARMENTS LTD HAS HIRED 100 NEW WORKERS AND MAY TAKE ON 200 MORE TSB HOMELOANS HAS ADDED 100 THERE IS WORK TO BE FOUND AT A NEW HOSPITAL THE SAINSBURY SUPERMARKETS AND THE FOREIGNOWNED ELECTRONICS PLANTS IN NEARBY SILICON GLEN ISN'T THIS EUROPE THE LAND OF NEARLY 20 MILLION UNEMPLOYED AND FEW NEW JOBS YES BUT BRITAIN HAS GONE ITS OWN WAY WHILE THE CONTINENT HAS LARGELY RESISTED CHANGE 15 YEARS OF CONSERVATIVE PARTY RULE HAVE HELPED MAKE BRITAIN'S ONCERIGID WORK FORCE MORE FLEXIBLE UNIONS AND WORKERS' RIGHTS HAVE BEEN WEAKENED MINIMUM WAGES STRUCK DOWN JOBLESS BENEFITS CUT AND SOME WAGES SQUEEZED PRODUCTIVITY HAS RISEN AN AVERAGE OF 45 ANNUALLY SINCE 1979 THE FASTEST RATE OF ANY MAJOR INDUSTRIALIZED NATION THIS THE GOVERNMENT AND ITS LAISSEZFAIRE SUPPORTERS BELIEVE HAS LED TO INCREASED INVESTMENT NEW BUSINESS AND FINALLY MORE JOBS BUT THE STRATEGY HAS COME AT A HIGH COST IT HAS LEFT BRITAIN WITH A LOWPAID LOWSKILL WORK FORCE IN DAYS GONE BY THEY NEVER WOULD HAVE GOT AWAY WITH THIS LAMENTS DAVID COUSINS A HOMELOAN OFFICER WORKING ON A THREEMONTH TRYOUT FOR 450 674 AN HOUR THE PAY IS A NIGHTMARE ADDS THE BEARDED 44YEAROLD WHO EARNED 2246 AN HOUR BEFORE BEING LAID OFF A COUPLE OF YEARS AGO BY ANOTHER BANK YET WORKERS SEE NO ALTERNATIVE SOMETIMES I THOUGHT WHY AM I DOING THIS' SAYS ALAN JOSEY WHO GOT A JOB THAT PAYS 18120 A WEEK PLUS TIPS AS A WAITER AFTER FIVE MONTHS ON THE DOLE AND SIX MONTHS AS AN UNPAID TRAINEE THE STATE THINGS ARE NOW I'M JUST GLAD TO HAVE A JOB WHETHER BRITAIN CAN OR SHOULD BE A MODEL FOR THE REST OF EUROPE STIRS INTENSE DEBATE MANY IN THE EUROPEAN UNION INTENT ON CREATING HIGHSKILL HIGHWAGE JOBS WANT NO PART OF BRITAIN'S STRATEGY THE TRADE UNION ADVISORY COMMITTEE TO THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT ARGUES THAT THE SOLUTION DOES NOT LIE IN FORCING THE UNEMPLOYED TO BECOME THE WORKING POOR' THROUGH A NEGATIVE INTERPRETATION OF LABORMARKET FLEXIBILITY' IT SAYS SUCH A STRATEGY WILL ENTAIL A DOWNWARD SPIRAL OF COMPETITION BASED ON LOW QUALITY STANDARDS CONTINUED STAGNATION OF MARKETS GROWING INEQUALITY AND INCREASED SOCIAL CONFLICT WHICH WILL ALSO UNDERMINE ECONOMIC GROWTH INSTEAD MANY EU PEOPLE TALK ABOUT CREATING 15 MILLION NEW JOBS BY THE YEAR 2000 BY TRAINING WORKERS AND SPENDING VAST SUMS ON PUBLICWORKS PROJECTS OF COURSE EUROPE HAS BEEN TRYING THAT STRATEGY FOR A DECADE TO LITTLE AVAIL AS A RESULT MANY EXPERTS PREDICT THAT EVENTUALLY THE CONTINENT WILL COME TO TERMS AS THE US DID AND BRITAIN IS DOING WITH THE NOTIONS THAT THE WORLD HAS CHANGED AND THAT IT MUST CHANGE TO COMPETE ON THE WORLD'S TERMS THEY DON'T HAVE ANY OPTION REALLY SAYS PATRICK MINFORD AN ECONOMIST AT LIVERPOOL UNIVERSITY EVEN GERMANY LONG EUROPE'S POWERHOUSE IS LOOKING TO THE ONETIME SICK MAN OF EUROPE GUNTER REXRODT THE GERMAN ECONOMICS MINISTER TOLD HIS PARLIAMENT EARLIER THIS YEAR THAT BRITAIN HAD ACHIEVED EXCEPTIONAL RESULTS WITH DEREGULATION BREAKING DOWN BUREAUCRATIC OBSTACLES TO STARTING NEW BUSINESSES AND MANAGING EXISTING COMPANIES THIS IS NOT TO SAY THAT BRITAIN IS AN ECONOMIC MIRACLE OVER THE PAST DECADE RESTRUCTURING HAS WIPED OUT HUNDREDS OF THOUSANDS OF JOBS IN ITS COAL STEEL AUTO AND BANKING INDUSTRIES AND THE WORK FORCE IS UNDERTRAINED COMPARED WITH THAT OF SOME EUROPEAN COUNTRIES ACCORDING TO A SURVEY BY THE NATIONAL INSTITUTE OF SOCIAL AND ECONOMIC RESEARCH IN LONDON AS IN AMERICA LARGE COMPANIES IN BRITAIN ARE STILL CUTTING COSTS BY LAYING OFF WORKERS AND THE UK UNEMPLOYMENT RATE REMAINS UNCOMFORTABLY HIGH AT 98 93 IN SCOTLAND BUT THE RATE IS DECLINING AND IS WELL BELOW GERMANY'S 115 FRANCE'S 12 ITALY'S 104 AND SPAIN'S MORE THAN 20 ECONOMISTS SAY BRITAIN IS ADDING AN AVERAGE OF ABOUT 100000 JOBS EVERY THREE MONTHS COMPARED WITH QUARTERLY LOSSES OF ABOUT 50000 JOBS AT THIS STAGE IN PREVIOUS RECOVERIES WITHIN SEVERAL YEARS PROF MINFORD PREDICTS BRITISH UNEMPLOYMENT COULD FALL TO A 3 OR 4 RATE WHILE THE CONTINENT REMAINS STUCK AT ABOUT 10 ENCOURAGING SIGNS ARE CROPPING UP ALL OVER BRITAIN IN WALES A SONY COLORTV PLANT THAT PAYS ITS MOSTLY FEMALE WORK FORCE 599 AN HOUR ADDED 600 JOBS LAST YEAR AND PLANS HUNDREDS MORE ITS SISTER PLANTS ON THE CONTINENT AREN'T DOING THAT IN NOTTINGHAMSHIRE A COAL MINE IS REOPENING WITH 200 WORKERS AFTER THEY AGREED TO MORE JOB FLEXIBILITY BLACK & DECKER CORP CITING SIGNIFICANT COST SAVINGS WILL MOVE SOME OPERATIONS FROM GERMANY TO SPENNYMOORE MAYTAG CORP'S HOOVER UNIT HAS CLOSED ITS OPERATIONS IN DIJON FRANCE IN FAVOR OF CAMBUSLANG SCOTLAND THE NEW FLEXIBILITY IN LABOR IS CLEARLY HELPING KVAERNER GOVAN A NORWEGIANOWNED SHIPYARD ON THE RIVER CLYDE AN AREA ONCE KNOWN AS THE RED CLYDE BECAUSE OF THE UNION POWER WHEN KVAERNER GOVAN TOOK OVER IN 1988 THE 1200 WORKERS WERE USED TO LONG TEA BREAKS FREQUENT ABSENTEEISM RIGID WORK RULES AND WORKING ONLY 28 OF THE 37 HOURS FOR WHICH THEY WERE PAID THE COMPANY DEMANDED THAT THEY WORK A FULL 35HOUR WEEK CUT THE NUMBER OF SHOP STEWARDS AND PHASED OUT EXTRA DAYS OFF AND WORK RULES WHEN THE UNION STRUCK IN 1991 THE COMPANY FIRED ALL THE WORKERS THE UNION SURRENDERED AND KVAERNER GOVAN GAVE ABOUT HALF OF ITS HIGHLY PAID SUPPORT STAFF OF 566 A TOUGH CHOICE A LOWERPAYING PRODUCTION JOB OR NO JOB AT ALL THE PEOPLE AT GOVAN RECOGNIZED THEIR ONLY CHANCE OF SURVIVING WAS IF WE MADE IT COMPETITIVE ENOUGH TO SECURE ORDERS SAYS BOBBY GORDON THE PERSONNEL DIRECTOR NOW KVAERNER GOVAN CAN MOVE PRODUCTION WORKERS FREELY FROM DEPARTMENT TO DEPARTMENT IT ALSO CAN USE CONTRACT LABOR TO AVOID HAVING IDLE STAFF ON THE PAYROLL THE SHIPYARD HAS DOUBLED PRODUCTIVITY BUILDING TWO SHIPS A YEAR INSTEAD OF ONE IT NOW HAS THE LOWEST LABOR COST 35491 A WEEK PER WORKER OF ANY KVAERNER YARD EVEN ONE IN THE FORMER EAST GERMANY IT HAS LANDED ORDERS FROM NORWAY AND SAUDI ARABIA THAT NOT LONG AGO IT WOULDN'T HAVE OBTAINED THE GAINS IN PRODUCTIVITY AND ORDERS ENABLED THE SHIPYARD TO EXPAND ITS STAFF TO ABOUT 1500 FROM 1200 PLUS UP TO 500 MORE WORKERS ON A CONTRACT BASIS WITH FEWER PEOPLE IN HIGHPAYING JOBS ITS REAL LABOR COSTS HAVEN'T RISEN MR GORDON SAYS THE SHIPYARD EARNED MONEY LAST YEAR AFTER DECADES OF LOSSES AND THE WORKERS HAVE LOST THEIR MILITANCY IT'S IMPOSSIBLE TO MAINTAIN THE WAGES WE ONCE ENJOYED SAYS DAVID COOPER A PIPE FITTER AND SHOP STEWARD HE AGREES IT IS DIFFICULT TO SUPPORT A FAMILY ON HIS WAGES HIS WIFE EARNS MORE AS A CIVIL SERVANT BUT HE HOPES FOR BETTER TIMES WE'RE SOMEWHAT DISADVANTAGED AT THE MOMENT BUT WE DON'T SEE IT BEING THAT WAY FOREVER BRITAIN WAS A PROSPEROUS COUNTRY AND IT WILL PROSPER AGAIN THE CONSERVATIVE GOVERNMENT GAVE WORKERS LITTLE CHOICE BUT TO CHANGE THEIR TUNE IT MADE IT EASIER TO HIRE AND FIRE IT DILUTED UNION POWER BY BANNING SECONDARY STRIKES AND CLOSED SHOPS THE 187 STRIKES LAST YEAR WERE THE FEWEST SINCE THE TALLY BEGAN IN 1891 IT DELAYED WORKERS' ELIGIBILITY FOR EMPLOYMENT RIGHTSPROTECTION AGAINST UNFAIR DISMISSAL AND PAYMENTS TO PEOPLE LAID OFF UNTIL THEY HAD BEEN ON THE JOB FOR TWO YEARS IT ABOLISHED WAGE COUNCILS WHICH HAD SET MINIMUM WAGES AND IT CUT UNEMPLOYMENT AND RELATED BENEFITS TO MAKE THE DOLE LESS ATTRACTIVE WHILE INCREASING JOBHUNT REQUIREMENTS FOR THE UNEMPLOYED AS A RESULT BRITISH WAGES HAVE RISEN MORE SLOWLY SINCE 1980 THAN THE EU AND OECD AVERAGES HOURLY COMPENSATION COSTS FOR UK PRODUCTION WORKERS ACCORDING TO THE US BUREAU OF LABOR STATISTICS' LATEST FIGURES AVERAGE 1469 COMPARED WITH 2594 FOR GERMANY 1941 FOR ITALY 1688 FOR FRANCE AND 1617 FOR THE US AND THAT STIRS CONTROVERSY VIRTUALLY ALL THE NET NEW JOBS HAVE BEEN PARTTIME MOST OF THEM GO TO WOMEN AND PAY LESS THAN FULLTIME JOBS IN SCOTLAND AVERAGE PAY IS 44476 A WEEK WITH NONMANUAL FEMALE WORKERS UNDER AGE 18 EARNING ONLY 14870 THE LOW PAY UNIT A LONDONBASED NONPROFIT GROUP SAYS THE NUMBER OF FULLTIME BRITISH EMPLOYEES WITH WEEKLY PAY BELOW THE COUNCIL OF EUROPE'S DECENCY THRESHOLD CURRENTLY DEFINED AS 861 AN HOUR IS UP TO 37 FROM 283 IN 1979 THERE ARE HUGE DIVISIONS BETWEEN HIGH AND LOW PAY AND THAT'S GETTING WORSE SAYS MORAG GILLESPIE DIRECTOR OF THE SCOTTISH LOW PAY UNIT DESPITE SLOW GROWTH IN AVERAGE WAGES SHE SAYS IN THE LONGER TERM WE WILL SEE PEOPLE SUFFERING REAL CUTS LESLEY EDGERTON ALREADY HAS SHE HAD MADE 1198 AN HOUR AS A SECRETARY BUT NOW IS WORKING IN A TEMPORARY JOB FOR 749 WITH NO BENEFITS THEY'RE TAKING ADVANTAGE AND NOT PAYING LIKE BEFORE SHE SAYS BUT THE GOVERNMENT'S POLICIES HAVE WON OVER MANY COMPANIES HERE IN DOWNTOWN GLASGOW TSB HOMELOANS HAS ADDED 340 FULLTIME EQUIVALENTS SINCE THE DIVISION OF TSB GROUP PLC OPENED THREE YEARS AGO MANY OF THOSE REPLACED JOBS IN SMALLER OFFICES THAT WERE CLOSED BUT THE COMPANY HAS ADDED 100 NEW JOBS IN THE PAST YEAR TSB USES THE NEW LABOR FLEXIBILITY TO THE FULLEST THAT IS CRUCIAL IN A BUSINESS IN WHICH WAGES CONSTITUTE 70 OF COSTS SOME 10 TO 15 OF ITS WORKERS ARE ON THREEMONTH TRYOUTS IT THEN HIRES THE TEMPORARIES IT LIKES THE DIVISION HAS FIVE DIFFERENT BUSINESS AREAS FOR PROCESSING MORTGAGES AND EACH MORNING IT ASSIGNS WORKERS TO A FUNCTION DEPENDING ON THE DAY'S MAIL IT HAS NO UNION NO JOB DEMARCATIONS AND ALMOST NO OVERTIME DESPITE ADDING EMPLOYEES THE COMPANY HASN'T INCREASED ITS OVERALL LABOR COSTS IT HAS ELIMINATED SOME MANAGERS IN FAVOR OF LOWERWAGE CLERICAL WORKERS IF I'VE GOT A MANAGER EARNING 30000 44925 A YEAR THAT'S EQUIVALENT TO FOUR OR FIVE CLERICAL PEOPLE SAYS ALAN POWER GENERAL MANAGER IF I SHED FIVE MANAGERS I'M INTO 25 MORE PEOPLE MR POWER TERMS THE LOW PAY A NECESSARY AND TEMPORARY STRATEGY IF WE'RE CHEAPER AND MORE EFFICIENT WE GET MORE BUSINESS AND DELIVER MORE JOBS HE SAYS NOTING THAT THE DIVISION MANAGED A 25 INCREASE IN ASSETS LAST YEAR HE FIGURES THAT BRITISH COMPANIES CAN BUILD A HIGHWAGE ECONOMY AFTER THEY GAIN A GREATER SHARE OF WORLD MARKETS UNTIL THEN HE SAYS WE'VE GOT TO SACRIFICE ACCEPTING THAT IT'S A VERY DIFFICULT MARKETPLACE WE'RE IN MARKETPLACE EARTH WORKERS FIND THAT ARGUMENT DIFFICULT TO COUNTER AT TSB MR COUSINS SAYS HE MUST SUPPLEMENT HIS INCOME WITH PARTTIME WORK AS A NIGHTCLUB SECURITY GUARD BUT IF HE WERE THE BOSS AT TSB HE ADDS HE WOULD RUN IT THE SAME WAY IT'S IRRESISTIBLE LOGIC HE SAYS IN THIS MARKET HIGH WAGES CAN'T WORK CLAREMONT GARMENTS ON THE SOUTH SIDE OF GLASGOW SAYS MOREFLEXIBLE LABOR HAS ALLOWED IT TO RESUME EXPANDING AFTER YEARS OF RETRENCHMENT THE PLANT EMPLOYED 1600 BEFORE CUTTING BACK TO 730 IN THE 1980S BUT THE THREAT OF FURTHER JOB LOSSES LED TO HUGE PRODUCTIVITY GAINS WHEN WORKERS SEE JOBS DISAPPEARING IT HAS A SALUTARY EFFECT ON PEOPLE'S ATTITUDES SAYS MICHAEL WEIR THE MANUFACTURING DIRECTOR CLAREMONT TOOK A SIXWEEK STRIKE A COUPLE OF YEARS AGO AND FORCED WORKERS TO ACCEPT A 20 CUT IN GUARANTEED PAY BUT OFFERED THEM A CHANCE AT MORE INCENTIVE PAY IT ALSO WON THE POWER TO MOVE WORKERS FREELY FROM TASK TO TASK AND HAS CUT HIGHLY PAID OFFICE JOBS IN FAVOR OF MORE PRODUCTION PEOPLE SOON THE WORKERS ARE TO COMPLETE THEIR 38 1/2HOUR WEEK IN FOUR DAYS LEAVING THE FIFTH FOR MAINTENANCE WITH HIGHER PRODUCTIVITY THE PAYROLL HAS GROWN TO 820 FROM 730 AND MAY CLIMB TO 1000 MR WEIR SAYS HIGHER PRODUCTIVITY AND FLAT PAY RATES HAVE CUT HIS LABOR COST TO TWOTHIRDS THE US LEVEL AND HALF THAT OF GERMANY THE NETHERLANDS AND BELGIUM ROW ON ROW OF WORKERS MOSTLY YOUNG WOMEN FILL THE SIXACRE PLANT EARNING INCENTIVE PAY FOR EACH PIECE SEWN THEY WORK FRANTICALLY RARELY TALKING OR LOOKING UP ONE AMANDA CAMPBELL A 20YEAROLD SINGLE MOTHER EARNS ONLY 13478 A WEEK BUT HOPES TO DOUBLE THAT THROUGH HARD WORK THE PAY ISN'T HIGH BUT NEITHER ARE MS CAMPBELL'S EXPECTATIONS IT'S A JOB SHE SAYS AND I HOPE TO KEEP IT 9403280135 940328 WHO'S NEWS LEVIATHAN GAS PIPELINE CO LEVIATHAN GAS PIPELINE CO HOUSTON JOHN H GRAY 52 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER OF THIS CLOSELY HELD COMPANY THAT IS THE GENERAL PARTNER OF LEVIATHAN GAS PARTNERS LP A PUBLICLY TRADED NATURALGAS GATHERING CONCERN HE WAS FORMERLY PRESIDENT MR GRAY SUCCEEDS DONALD V WEIR 52 WHO RESIGNED BUT WHO REMAINS A DIRECTOR OF LEVIATHAN GAS PIPELINE GRANT E SIMS 38 WAS NAMED PRESIDENT OF LEVIATHAN GAS PIPELINE SUCCEEDING MR GRAY IN THAT JOB 9403280134 940328 SOROS SELLS HIS STOCK IN MUNITIONS MAKER ALLIANT TECHSYSTEMS WASHINGTON FINANCIER GEORGE SOROS HAS CASHED OUT OF A MINNEAPOLIS MUNITIONS MAKER AFTER DECIDING ITS BUSINESS WAS INCONSISTENT WITH HIS CHARITABLE ACTIVITIES MR SOROS SAID HE SOLD HIS ROUGHLY 6 STAKE IN ALLIANT TECHSYSTEMS INC WHICH MAKES WEAPONS INCLUDING TANK AMMUNITION MINES TORPEDOES CLUSTER BOMBS AND MEDIUMCALIBER MACHINEGUN ROUNDS BUT MR SOROS WHO MANAGES NEARLY 4 BILLION THROUGH THE QUANTUM FUND AND OTHER INVESTMENT VEHICLES DIDN'T SELL THE STOCK AS AN INVESTMENT MOVE HE SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING RATHER MR SOROS DETERMINED THAT MAINTAINING QUANTUM'S INVESTMENT IN THE COMPANY WAS NOT COMPATIBLE WITH HIS PHILANTHROPIC AND HUMANITARIAN ACTIVITIES THE FILING SAID A SPOKESMAN FOR MR SOROS DECLINED TO COMMENT FURTHER AN ALLIANT SPOKESMAN SAID THE COMPANY'S LARGE SHAREHOLDERS MAKE PROFIT DECISIONS EVERY DAY AND THE COMPANY WAS GLAD TO HAVE HAD HIM AS A SHAREHOLDER AND PERHAPS ONE DAY HE WILL AGAIN BE A SHAREHOLDER THE SPOKESMAN SAID THE COMPANY HADN'T SEEN THE FILING MR SOROS HEAVILY INVOLVED IN EASTERN AND CENTRAL EUROPEAN AFFAIRS HAS DONATED MILLIONS OF DOLLARS IN HUMANITARIAN AID TO BOSNIA AND DENOUNCED THE WEST'S RELUCTANCE TO HELP THE FORMER YUGOSLAVIA LAST WEEK HE ANNOUNCED 4 MILLION OF EMERGENCY AID FOR MACEDONIA THE MOVE AWAY FROM ALLIANT MAY BE CONNECTED WITH CONCERN OVER THE PROLIFERATION OF LAND MINES BY PEOPLE ASSOCIATED WITH MR SOROS THE PRESIDENT OF MR SOROS'S OPEN SOCIETY FUND ARYEH NEIER LIKENED THE USE OF MINES TO TORTURE IN A NOVEMBER NEW YORKER ARTICLE THAT NOTED SOROS'S INVESTMENT IN ALLIANT MR SOROS GOT RID OF HIS ALLIANT POSITION MARCH 22 SELLING 613457 COMMON SHARES AT PRICES RANGING FROM 2448 TO 2450 EACH ACCORDING TO THE FILING THE FILING DIDN'T SAY HOW MUCH HE PAID FOR THE SHARES 9403280133 940328 CORPORATE FOCUS MEDIA VISION MANAGEMENT STIRS DOUBTS ON WALL STREET RECENT DISCLOSURE BY JAIN CONTRADICTS EARLIER FORECAST RAISING QUESTIONS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL PAUL JAIN PRESIDENT AND CHIEF EXECUTIVE OF MEDIA VISION TECHNOLOGY INC PREDICTED LAST YEAR THAT HE AND OTHER MAKERS OF MULTIMEDIA SOUND CARDS WOULD TROUNCE INDUSTRY LEADER CREATIVE TECHNOLOGY LTD SAYING IF I WERE THEM I'D BE REALLY SCARED MR JAIN HAS CAUSE FOR CONCERN HIMSELF THESE DAYS ANGRY INVESTORS HAVE TURNED ON HIS COMPANY WITH A VENGEANCE AFTER TWO UGLY SURPRISES CONCERNING MEDIA VISION'S FINANCIAL CONDITION THE LATEST CAME THURSDAY WHEN MR JAIN DISCLOSED THAT UNEXPECTED NEW PRICECUTTING AND A DELAYED PRODUCT SHIPMENT WILL RESULT IN A SUBSTANTIAL LOSS IN THE FIRST QUARTER THE STOCK FELL 1050 A SHARE OR 49 THAT DAY TO 11 IN NASDAQ STOCK MARKET TRADING IT CLOSED EVEN LOWER FRIDAY AT 1075 IN THE PAST FIVE WEEKS ABOUT 500 MILLION IN MEDIA VISION'S MARKET CAPITALIZATION HAS BEEN OBLITERATED THE STOCK TRADED AS HIGH AS 4325 IN FEBRUARY THE SELLOFF BEGAN FEB 18 AFTER THE FREMONT CALIF CONCERN DISCLOSED THAT UNSOLD INVENTORY JUMPED FOURFOLD IN THE FOURTH QUARTER AT A TIME WHEN OTHER MAJOR COMPETITORS BARELY KEPT PACE WITH FRENETIC CHRISTMAS BUYING DEMAND STARTUP TECHNOLOGY FIRMS SUCH AS MEDIA VISION OFTEN EXPERIENCE GROWING PAINS BUT BECAUSE MANAGEMENT'S COMPETENCE AND CREDIBILITY ARE BEING CALLED INTO QUESTION MEDIA VISION IS DRAWING INORDINATE ATTENTION ON WALL STREET JUST EIGHT DAYS BEFORE DISCLOSING THE EXPECTED LOSS FOR INSTANCE MR JAIN PROVIDED A ROSY FORECAST TO ANALYSTS ANALYSTS AND INVESTORS ALSO WONDER HOW MEDIA VISION COULD HAVE SO BADLY MISCALCULATED CHRISTMAS ORDERS GIVEN THAT ITS BIGGEST COMPETITORS CREATIVE TECHNOLOGY AND AZTECH SYSTEMS LTD HELD THEIR INVENTORIES IN CHECK THE GENERAL FEELING IS WHAT IS GOING ON WITH MANAGEMENT SAYS BRUCE GOEDDE ANALYST AT LH ALTON & CO MR JAIN DENIES MISLEADING ANYONE AND SAYS HIS INVENTORY PROBLEMS RESULTED FROM HONEST ERROR HE ADDS MEDIA VISION'S TROUBLES HAVE BEEN BLOWN OUT OF PROPORTION BY SKEPTICS AND THAT THE COMPANY WILL REBOUND WHEN YOU GROW AS FAST AS WE HAVE GROWN YOU HIT A BUMP HE SAYS WHAT YOU HAVE TO DO IS TAKE CARE OF THOSE BUMPS THE SAGA IS ALSO A POTENTIAL EMBARRASSMENT FOR ANALYSTS WHO HAVE BEEN TOUTING THE STOCK AS A MULTIMEDIA PLAY AND FOR SAN FRANCISCOBASED MONTGOMERY SECURITIES WHICH SERVED AS LEAD UNDERWRITER FOR MEDIA VISION'S 75 MILLION DEBT OFFERING FOUR MONTHS AGO WHEN THE BALANCE SHEET WAS ALREADY SHOWING SIGNS OF STRAIN MONTGOMERY SECURITIES ANALYSTS DIDN'T RETURN CALLS FOR COMMENT BUT THE FIRM MADE HUGE CUTS THURSDAY IN ITS PROJECTIONS FOR MEDIA VISION'S 1994 REVENUE TO A RANGE OF 280 MILLION TO 320 MILLION FROM A PREVIOUS ESTIMATE OF 406 MILLION AND FOR EARNINGS TO A RANGE OF 40 CENTS TO 80 CENTS A SHARE FROM 210 MR JAIN A DAPPER INDIAN ENTREPRENEUR ATTENDED COLLEGE IN VIENNA BEFORE EMIGRATING TO THE US TO EARN A MASTER'S DEGREE IN COMPUTER SCIENCE AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY THE 48YEAROLD MR JAIN FOUNDED A NUMBER OF SILICON VALLEY STARTUPS BEFORE LAUNCHING MEDIA VISION IN MAY 1990 WITH 500000 AND THREE EMPLOYEES AFTER MEDIA VISION WENT PUBLIC THE STOCK SOARED FROM 2025 TO A DECEMBER 1993 PEAK OF 4375 AS THE COMPANY RODE A BOOM IN SALES OF PERSONAL COMPUTERS OUTFITTED WITH NEW MULTIMEDIA CAPABILITIES FOR PROCESSING MOVING VIDEO AND SOUND IT EXPANDED FROM ITS CORE BUSINESS OF SOUND CARDS TO VIDEO CARDS AS WELL AS MULTIMEDIA UPGRADE KITS AND EVEN SOME MULTIMEDIA SOFTWARE PROGRAMS FOR 1993 MEDIA VISION POSTED 2414 MILLION IN SALES AND RANKED SECOND BEHIND CREATIVE TECHNOLOGY IN THE WORLDWIDE SOUNDCARD MARKET MULTIMEDIA SOUND CARDS GIVE A PERSONAL COMPUTER THE ABILITY TO PRODUCE SOUND FOR EXAMPLE WHILE VIEWING A CDROM ENCYCLOPEDIA ON SCREEN AN IMAGE OF A DINOSAUR COULD BE ACCOMPANIED BY THE SOUNDS THAT IT MAKES THE MANAGEMENT MISSTEPS BEGAN IN THE FOURTH QUARTER WHEN STEVE ALLAN MEDIA VISION'S CHIEF FINANCIAL OFFICER AND OTHER EXECUTIVES WORRIED ABOUT RUMORED PARTS SHORTAGES IN COMING MONTHS FEARING SHORTAGES MIGHT CRIMP MEDIA VISION'S ABILITY TO KEEP UP WITH DEMAND MR ALLAN SAYS THE COMPANY PRODUCED GOODS IN NOVEMBER AND DECEMBER THAT IT WOULD HAVE POSTPONED WE DID IT AS AN INSURANCE POLICY MR ALLAN SAYS AS IT TURNED OUT THE RUMORS TURNED OUT NOT TO BE TRUE THE RESULTING MISCALCULATION LEFT MEDIA VISION WITH 809 MILLION IN UNSOLD INVENTORY NEARLY DOUBLE THE PREVIOUS QUARTER CREATIVE'S UNSOLD INVENTORY BY CONTRAST EDGED UP TO 645 MILLION IN THE FOURTH QUARTER FROM 63 MILLION IN THE PREVIOUS QUARTER ACCOUNTS RECEIVABLES WHICH REFLECT GOODS SHIPPED FOR WHICH PAYMENT HASN'T YET BEEN RECEIVED ALSO NEARLY DOUBLED FROM 66 MILLION IN THE THIRD QUARTER TO 1221 MILLION IN THE FOURTH WHILE CREATIVE'S RECEIVABLES INCREASED TO 718 MILLION FROM 645 MILLION ALL THIS CRITICS SAY INDICATES MEDIA VISION WAS PUSHING PRODUCT INTO THE RETAIL CHANNEL THE SPECULATION MAT THE TIME WAS THEY WOULD END UP OVERSATURATING MEDIA VISION'S PRODUCT SAYS BILL CROUCH A MARKETING VICE PRESIDENT FOR AZTECH LABS INC AZTECH'S NORTH AMERICAN UNIT IN FREMONT CALIF I THINK THEY WANTED TO SHOW A BIG SALES NUMBER TO SATISFY WALL STREET ASSERTS JEFF MATTHEWS GENERAL PARTNER OF RAM PARTNERS A GREENWICH CONNBASED FIRM THAT HAS SHORTED MEDIA VISION'S STOCK MR JAIN LASHES OUT AT SHORTSELLERS LIKE MR MATTHEWS WHOM HE SAYS CONTRIBUTED TO THE INITIAL FALL IN MEDIA VISION'S STOCK WHEN THE FOURTHQUARTER RESULTS WERE RELEASED WHEN YOU BUILD A COMPANY AS BEAUTIFULLY AS WE HAVE IT DOESN'T FEEL GOOD TO HAVE RUMORS SPREAD ABOUT YOU THAT ARE ABSURD HE SAYS BUT THE OTHER SHOE DROPPED LAST WEEK WHEN MEDIA VISION ISSUED A TERSE PRESS RELEASE THAT PRICE CUTTING BY THE COMPETITION FORCED IT TO SLASH PRICES ON UNSPECIFIED PRODUCTS AND THAT THE COMPANY EXPECTED A SIGNIFICANT FALL IN FIRSTQUARTER REVENUE BECAUSE SHIPMENT OF AN UNSPECIFIED NEW PRODUCT IS BEING DELAYED UNTIL THE SECOND QUARTER THE COMBINED ACTIONS WOULD RESULT IN A LOSS FOR THE FIRST PERIOD THE COMPANY SAID INVESTORS REACTED WITH SURPRISE BECAUSE MR JAIN AS RECENTLY AS MARCH 16 HAD APPEARED AT A MORGAN STANLEYSPONSORED CONFERENCE IN LAGUNA NIGUEL CALIF TO PROCLAIM ALL WAS WELL WITH THE COMPANY IT MR JAIN'S FORECAST DIDN'T JIBE WITH WHAT HAPPENED SAYS LH ALTON'S MR GOEDDE MESSRS JAIN AND ALLAN CLAIM THE FORECAST CAME BEFORE THE COMPANY REALIZED THAT CREATIVE TECHNOLOGY WAS DEEPENING PRICE CUTS WHICH HIT US LIKE A 90 EARTHQUAKE SAYS MR ALLAN OFFICIALS AT CREATIVE TECHNOLOGY HOWEVER SAY THEY INSTITUTED NO UNUSUAL PRICE CUTS BUT CONTINUED WITH GRADUAL REDUCTIONS THAT HAVE TAKEN PLACE FOR MONTHS MANUFACTURES MULTIMEDIA EQUIPMENT FOR PERSONAL COMPUTERS INCLUDING SOUND AND VIDEO CARDS AND MULTIMEDIA UPGRADE KITS PRODUCES MULTIMEDIA SOFTWARE TITLES 9403280132 940328 ECONOMY EXISTINGHOME SALES SLOWED 99 DURING FEBRUARY BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF EXISTING SINGLEFAMILY HOMES SLOWED IN FEBRUARY FROM JANUARY'S BOOM PARTLY AS A RESULT OF BAD WEATHER BUT THE PACE WAS STILL HEALTHY ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS ON A SEASONALLY ADJUSTED RATE FEBRUARY HOME RESALES FELL 99 TO 3830000 UNITS FROM A REVISED 4250000 IN JANUARY CONTINUING AN ANTICIPATED DECLINE FROM THE RECORD PACE IN DECEMBER OF 4350000 ON A YEARTOYEAR BASIS THE PACE PICKED UP 104 FROM 3470000 THE NUMBERS WERE WEAKER THAN WE EXPECTED SAID BRIAN M JONES AN ANALYST AT SALOMON BROTHERS INC IT'S NOTHING TO GET UPSET ABOUT THE WEATHER MERELY DEFERRED ACTIVITY IT DIDN'T KILL IT NEVERTHELESS A LEADING INDICATOR OF THE MORTGAGE BANKER'S ASSOCIATION RECENTLY PLUNGED AS INTEREST RATES HAVE CONTINUED CLIMBING THE ASSOCIATION'S PURCHASE INDEX OF MORTGAGES THAT WILL CLOSE IN 30 TO 60 DAYS PEAKED IN FEBRUARY AT 97 ABOVE ITS NORMAL LEVEL OF ACTIVITY DECLINED SLIGHTLY AND THEN FELL SHARPLY IN THE MIDDLE OF MARCH TO 73 ABOVE NORMAL HOME SALES LAG AS MUCH AS TWO MONTHS BEHIND THE DECISION TO BUY THUS NEW MORTGAGE PURCHASES ARE A MORE ACCURATE INDICATOR OF HOUSING ACTIVITY WE'RE FINALLY SEEING AN IMPACT OF RISING RATES SAID DAVID LEREAH AN ECONOMIST AT THE MORTGAGE BANKER'S ASSOCIATION THESE RATES MAY JUST BE TOO HIGH FOR PEOPLE AND THAT'S INHIBITING ACTIVITY I THINK IT WILL PROBABLY FLATTEN OUT AT THIS LEVEL AND HOVER THE AVERAGE RATE ON A CONVENTIONAL 30YEAR MORTGAGE INCREASED ON FRIDAY TO 790 DOWN FROM ITS RECENT PEAK OF 795 IN THE WEEK BUT UP FROM 785 A WEEK EARLIER ACCORDING TO A SURVEY BY HSH ASSOCIATES IN BUTLER NJ THE SHORTTERM EFFECT OF RISING RATES IS TO PULL BUYERS INTO THE MARKET BUT IN THE LONG RUN HIGHER RATES START CHOKING OFF ACTIVITY STILL AT THIS POINT NEW MORTGAGE PURCHASES ARE RUNNING AT THE LEVELS OF OCTOBER AND NOVEMBER WHEN HOME RESALES STARTED BOOMING AND CONTINUED GROWTH IN THE ECONOMY MEANS THAT MORE PEOPLE WILL CONSIDER BUYING HOMES THAN BEFORE EVEN WITH HIGHER RATES THE QUESTION REMAINING IS WILL STRONG ECONOMIC ACTIVITY OFFSET THE RATES ASKED MR LEREAH AND THE ANSWER FOR ME IS YES THE STRONG ECONOMY SHOULD DOMINATE THE HOUSING MARKET INDEED COMPARED WITH A YEAR EARLIER ALL REGIONS OF THE COUNTRY SHOWED IMPROVING SALES THE WEST FARED THE BEST POSTING A 22 GAIN IN ACTIVITY FROM A YEAR EARLIER CALIFORNIA SHOWED A 22 JUMP ON A 33 PRICE SLIDE ACCORDING TO THE CALIFORNIA ASSOCIATION OF REALTORS THE NORTHWEST HAD A 9 INCREASE FOLLOWED BY THE SOUTH WITH 8 GAIN AND THE MIDWEST TRAILING WITH A 45 INCREASE ROBERT H ELROD PRESIDENT OF THE NATIONAL ASSOCIATION OF REALTORS SAID THAT THE SPRING HOME BUYING SEASON SHOULD BOOST THE PACE SOMEWHAT AND THAT THE ASSOCIATION STILL THINKS RESALES COULD REACH A RECORD 3940000 UNITS THIS YEAR A 4 INCREASE FROM LAST YEAR OTHERS ARE LESS OPTIMISTIC MARK ZANDI AN ECONOMIST AT REGIONAL FINANCIAL ASSOCIATIONS IN WEST CHESTER PA EXPECTS THAT RESALES WILL ONLY HIT 3850000 IN 1994 BECAUSE THE PENTUP DEMAND THAT HAS BEEN DRIVING THE MARKET WILL WANE THROUGHOUT THE REST OF THE YEAR IT'S NOT ONLY THE HIGH RATES BUT THE ENDING OF THE PENTUP DEMAND HE SAID IT'S GOING TO TAKE SOME OF THE STEAM OUT OF THE MARKET 9403280131 940328 AMERICA ONLINE SHAREHOLDER SAID TO CONSIDER SALE ALLEN MAY SELL 18 STAKE AS COMPANY BLOCKS BID FOR A MORE ACTIVE ROLE BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BILLIONAIRE PAUL ALLEN THE COFOUNDER OF MICROSOFT CORP WHO HOLDS AN 18 STAKE IN WALL STREET DARLING AMERICA ONLINE INC IS BELIEVED TO BE CONSIDERING PULLING OUT OF HIS INVESTMENT IN THE HIGHFLYING CONCERN MR ALLEN BEGAN ACQUIRING CHUNKS OF AMERICA ONLINE STOCK AFTER IT WENT PUBLIC TWO YEARS AGO AT 1150 A SHARE AND HAS SEEN HIS INVESTMENT TRIPLE IN VALUE TO MORE THAN 120 MILLION NOW INDUSTRY INSIDERS SAY HE HAS SIGNALED THAT HE IS LOOKING FOR A WAY TO DISPOSE OF HIS HOLDINGS FUELED IN PART BY TAKEOVER SPECULATION AMERICA ONLINE SHARES SOARED 1850 IN JUST THREE DAYS LAST WEEK TO A HIGH OF 9150 THE STOCK FELL 6875 IN NASDAQ STOCK MARKET TRADING FRIDAY TO CLOSE AT A STILLLOFTY 84625 GIVING THE COMPANY A STARTLING VALUATION OF MORE THAN 90 TIMES ITS PERSHARE EARNINGS THROUGH A SPOKESWOMAN MR ALLEN DECLINED REQUESTS FOR COMMENT ON WHETHER HE MAY SELL AS DID BILL SAVOY PRESIDENT OF MR ALLEN'S INVESTMENT HOLDING COMPANY VULCAN VENTURES AMERICA ONLINE'S PRESIDENT STEPHEN CASE ALSO DECLINED TO COMMENT ON MR ALLEN'S STAKE MR ALLEN HAD ORIGINALLY HOPED TO WIN BOARD REPRESENTATION AT AMERICA ONLINE AND TO HAVE HIS OTHER HIGHTECH CONCERNS WORK CLOSELY WITH THE ONLINE COMPUTER SERVICE AMERICA ONLINE HOWEVER HAS BEEN LESS THAN WELCOMING IT ADOPTED A POISONPILL PLAN IN MAY 1993 TO DISCOURAGE HIM HASN'T GRANTED HIM BOARD REPRESENTATION AND HAS PURSUED FEWER ALLIANCES WITH HIS OTHER COMPANIES THAN HE HAD FIRST SOUGHT AMERICA ONLINE'S MR CASE SAID THE COMPANY WAS LEERY OF MR ALLEN SITTING ON THE BOARD BECAUSE IT MIGHT UPSET STRATEGIC ALLIANCES THE CONCERN WOULD BE THAT OTHER PARTNERS MIGHT WORRY ABOUT THEIR PRODUCT PLANS POSSIBLY FALLING INTO THE HANDS OF COMPETING COMPANIES IN WHICH MR ALLEN HAS A STAKE MR ALLEN HAS HOLDINGS IN VARIOUS HIGHTECH COMPANIES THAT AIM TO SERVICE THE EMERGING INFORMATION SUPERHIGHWAY WE'VE WELCOMED HIS INVOLVEMENT BUT AT THE SAME TIME WANT A LEVEL PLAYING FIELD SAID MR CASE I THINK IT'S PRETTY FAIR TO SAY THAT WE'RE A PRETTY PASSIVE INVESTOR WE'RE NOT ACTIVELY INVOLVED IN THE DIRECTION OF THE COMPANY MR SAVOY OF VULCAN VENTURES SAID IN A RECENT INTERVIEW SPREADING THE WORD INDUSTRY EXECUTIVES SAID MR SAVOY BEGAN QUIETLY LETTING IT BE KNOWN A FEW WEEKS AGO THAT MR ALLEN VIEWED AMERICA ONLINE'S CAPABILITY WITH SOME CONCERN THE FIERCELY PRIVATE INVESTOR WAS SAID TO BE WARY THAT AMERICAN ONLINE'S SERVICE WASN'T AS FLEXIBLE AND ROBUST AS IT MIGHT NEED TO BE TO EASILY ADOPT NEW MULTIMEDIA CAPABILITIES INDEED ONE OF MR ALLEN'S COMPANIES STARWAVE CORP HAS JUST PASSED OVER AMERICA ONLINE IN FAVOR OF A NEW AND UNTESTED ONLINE SERVICE FROM ZIFF COMMUNICATIONS CO TO CARRY A NEW SPORTSINFORMATION OFFERING THE CURRENT AMERICA ONLINE PLATFORM ISN'T ADEQUATE SAID STARWAVE PRESIDENT MICHAEL SLADE ACCORDING TO MR CASE AMERICA ONLINE IS PURSUING A TICKETSALES VENTURE WITH TICKETMASTER CORP IN WHICH MR ALLEN OWNS A MAJORITY SHARE AND IS WORKING WITH METRICOM INC A WIRELESS NETWORK CONCERN IN WHICH MR ALLEN HOLDS A MINORITY STAKE AMERICA ONLINE HOPES TO BECOME THE DE FACTO STANDARD FOR THE USER INTERFACE AND THE LOOK AND FEEL OF ALL ONLINE COMPUTER SERVICES BUT SOME NEWCOMERS SUCH AS MAGAZINE AND NEWSPAPER PUBLISHERS MAY BALK AT LETTING AMERICA ONLINE IMPOSE ITS OWN ONSCREEN APPEARANCE ON NEW ELECTRONIC SERVICES BEYOND SUCH CONCERNS MR ALLEN ALSO MAY BE WEIGHING THE STOCK'S EXTRAORDINARY RUNUP IT ISN'T CLEAR HOW HE MIGHT PROCEED IF HE WERE TO CHOOSE TO SELL DUMPING HIS MORE THAN 14 MILLION SHARES INTO THE MARKET MIGHT BATTER AMERICA ONLINE'S STOCK PRICE AND REDUCE THE VALUE OF THE STAKE BEFORE HE CAN SELL ALL OF IT IF HE SOLD TO AN ACQUIRER THE STAKE MAY WELL FETCH A PREMIUM CHICAGO CORP ANALYST RICK MARTIN HAS ASSERTED THAT AMERICA ONLINE WOULD SELL FOR 200 A SHARE IN A TAKEOVER ANY NEW ACQUIRER HOWEVER MIGHT BE HAMPERED BY AMERICA ONLINE'S POISON PILL IF ANYONE ACQUIRES 25 OR MORE IT MAY FLOOD THE MARKET WITH NEW PREFERRED STOCK THAT HAS 100 TIMES THE VOTING POWER OF COMMON SHARES A NEW BUYER WOULD BE FORCED TO PAY 100 TIMES THE COMMON SHARE PRICE FOR EACH NEW PREFERRED SHARE ACCORDING TO A FILING OF THE PLAN WITH THE SECURITIES AND EXCHANGE COMMISSION MR CASE SAID THE POISONPILL MEASURE IS DESIGNED TO GIVE THE BOARD OF DIRECTORS THE ULTIMATE CONTROL OF THE COMPANY IT MAKES IT IMPRACTICAL FOR ANYONE TO GAIN MORE THAN 25 WITHOUT THE CONSENT OF THE BOARD THE PLAN WOULD ESSENTIALLY DOUBLE THE TAKEOVER PRICE FOR AMERICA ONLINE AT THE 200ASHARE TAKEOVER VALUE ENVISIONED BY MR MARTIN THE COMPANY'S 76 MILLION SHARES WOULD HAVE A TOTAL VALUE OF 152 BILLION BUT THE NEW PREFERRED WOULD PUSH THE PRICE TO 304 BILLION THAT COULD WELL HINDER MR ALLEN SHOULD HE TRY TO SELL TO AN INVESTOR HOPING TO MAKE AN UNSOLICITED BID FOR THE COMPANY 9403280130 940328 WORLD MARKETS EUROPEAN STOCKS ARE ENDING THE FIRST QUARTER WITH A RASH OF LOSSES OUTLOOK ISN'T MUCH BETTER BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IT HASN'T BEEN PRETTY FOR EUROPEAN EQUITY INVESTORS STOCKS OF THE REGION'S 100 LARGEST COMPANIES ARE ENDING THE QUARTER DOWN ABOUT 32 THE FATE OF SOME OF EUROPE'S BIGGEST BOURSES HAS BEEN EVEN MORE GHASTLY WITH LONDON DROPPING ABOUT 75 PARIS FALLING 53 AND ZURICH 39 COMPARE PERFORMANCES LIKE THAT WITH THE PREVIOUS THREE QUARTERS WHICH SAW AVERAGE GAINS OF AROUND 8 INDEED MOST INVESTORS WOULD HAVE BEEN FAR BETTER OFF PUTTING ALL THEIR MONEY INTO ULTRASAFE INVESTMENTS SUCH AS SHORTTERM DEPOSITS IN MARKS FOR EXAMPLE WHICH WOULD HAVE EARNED THEM ABOUT 15 FOR THE PERIOD PROSPECTS FOR THE SECOND QUARTER DON'T LOOK VASTLY BETTER AND THE MARKETS SEEM LIKELY TO SHINE ONLY ON THOSE WHO METICULOUSLY PICK THE FEW COMPANIES THAT HAVE RESTRUCTURED RECENTLY AND ARE GROWING IN THE CURRENT SLUGGISH EUROPEAN ECONOMIC ENVIRONMENT THE UNDERLYING STORY IS THAT THERE IS SOME SORT OF RECOVERY GOING ON IN EUROPE BUT IT'S NOT A PARTICULARLY STRONG ONE SAID JIMMY BURNS EUROPEAN INVESTMENT MANAGER AT STEWART IVORY & CO IN EDINBURGH SCOTLAND VOLATILITY IS THE NAME OF THE GAME FOR MOST MARKETS SO YOU WOULD BE BETTER OFF SELECTING A HANDFUL OF GROWTH STOCKS RATHER THAN PLAYING A WHOLE MARKET OUTRIGHT BEHIND THE WRETCHED RETURNS POSTED BY MOST EUROPEAN STOCK MARKETS IN THE FIRST THREE MONTHS OF THE YEAR LAY A LOT OF BROKENHEARTED FUND MANAGERS WHO WERE BETTING ON A VERY DIFFERENT SCENARIO THE BUNDESBANK WAS SUPPOSED TO BEGIN THE YEAR DISHING OUT HEALTHY DOLLOPS OF OFFICIAL INTERESTRATE CUTS AS REGULARLY AS ONCE A MONTH INSTEAD ALL GERMANY'S CENTRAL BANK HAD TO OFFER FOR THE FIRST THREE MONTHS OF THE YEAR WAS A 1/2POINT REDUCTION FEB 17 THAT LEFT A RAVENOUS MARKET PRIMED TO RUN ON EASIER CREDIT TERMS STARVING FOR MORE JUST AS IMPORTANTLY THE US FEDERAL RESERVE BOARD'S ABOUTFACE IN MONETARY POLICY FEB 4 SET OFF SERIOUS SELLING ON GLOBAL BOND MARKETS WHICH IN TURN DID A LOT TO DRAG EQUITY PRICES LOWER LAST YEAR EUROPEAN MARKETS WERE FUELED BY LIQUIDITY FROM THE US ESPECIALLY INSTITUTIONAL INVESTORS SAID ALBERT EDWARDS GLOBAL STRATEGIST AT KLEINWORT BENSON SECURITIES LTD IN LONDON BUT FOLLOWING THE FED TIGHTENING THE FLOW OF FUNDS HAS DRIED UP AND THAT'S WHY EUROPE HAS STRUGGLED MANY STRATEGISTS ARE RECOMMENDING THAT THE ONLY PROFITABLE WAY TO PLAY THE EUROPEAN RECOVERY STORY IS TO BE CAREFUL AND SELECT COMPANIES THAT HAVE BEEN AGGRESSIVELY CUTTING COSTS AND USING INCREASED PROFITS TO BUY MARKET SHARE ONE SHOULD BE LOOKING FOR COMPANIES GOING THROUGH THE PROCESS OF RESTRUCTURING SAID RONALD ARMIST A DIRECTOR OF LOMBARD ODIER PORTFOLIO MANAGEMENT IN LONDON YOU HAVE TO FACTOR IN THE STRONG POSSIBILITY THAT EUROPEAN INTEREST RATES MIGHT NOT FALL AS FAR AS PEOPLE CURRENTLY THINK MR ARMIST HAS BEEN BUYING COMPANIES SUCH AS NEDLLOYD GROEP NV A DUTCH TRANSPORT COMPANY AND MEDIUMSIZE COMPANIES IN THE UNITED KINGDOM THAT LOOK POISED TO BENEFIT FROM THE COUNTRY'S MODEST ECONOMIC RECOVERY SUCH AS PIZZA EXPRESS PLC AND CONSTRUCTION MATERIAL GROUP WOLSELEY PLC MR BURNS AT STEWART IVORY ALSO FAVORS SOME OF EUROPE'S LESSERKNOWN COMPANIES INCLUDING BRIOCHE PASQUIER SA A FRENCH BAKER WITH A BROAD DISTRIBUTION NETWORK AND COLRUYT NV A DISCOUNT FOODSTORE CONCERN IN BELGIUM THAT SEEMS TO BE WINNING A DOMESTIC PRICE WAR CERTAINLY THE STRATEGY GOING INTO THE NEXT QUARTER SHOULD BE SKEPTICAL IF NOT DOWNRIGHT DEFENSIVE SOME THINK THERE IS EVEN WORSE IN STORE FOR EUROPEAN BOURSES NOTABLY DAVID ROCHE A STRATEGIST AT MORGAN STANLEY INTERNATIONAL LTD IN LONDON MR ROCHE BELIEVES THAT THE CURRENT DOWNTURN WORLDWIDE IS ONLY HALF OVER AND THINKS HIS RIVALS AT OTHER MAJOR BROKERAGE FIRMS HAVE BEEN TOO BULLISH ABOUT THE STRENGTH OF THE RECOVERY ON THE CONTINENT AND ARE PLACING TOO MUCH HOPE IN THE RELATIVELY UNIMPORTANT ECONOMIES OF SCANDINAVIA SWITZERLAND AND DENMARK HE EXPECTS THE ONLY SIZABLE ECONOMY TO POST REAL GROWTH THIS YEAR WILL BE BRITAIN'S BUT THAT ITS GROSS DOMESTIC PRODUCT WILL INCREASE BY A FIGURE NEARER TO 2 THAN THE 3 WIDELY FORECAST BECAUSE OF A SERIES OF TAX INCREASES THE LATEST OF WHICH WILL KICK IN NEXT MONTH MR ROCHE SAID CORE EUROPEAN COUNTRIES INCLUDING FRANCE GERMANY AND THE BENELUX COUNTRIES MAY SUFFER A DECLINE IN OUTPUT OR AT LEAST STAGNATION THIS YEAR WHILE PERIPHERAL COUNTRIES WILL SHOW MODEST PICKUPS IN THEIR ECONOMIES YIELDING TOTAL REGIONAL GROWTH OF PLUS OR MINUS 05 TOKYO STOCKS SLUMPED 1 AMID SKITTISHNESS ABOUT A TUMBLE ON WALL STREET AND THE RESURGENCE OF THE YEN LONDON STOCKS ROSE ON A TECHNICAL BOUNCE AT THE CLOSE AFTER A SESSION DOMINATED BY SHARP LOSSES FRANKFURT SHARES SKIDDED 15 IN VERY THIN TRADING AMID INVESTOR NERVOUSNESS AND LOWER BOND PRICES IN MEXICO CITY STOCKS FELL FOLLOWING THE ASSASSINATION OF PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO BUT A LATE UPSWING BRAKED THE SLIDE WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11415 DOWN 078 REFLECTING DECREASES IN MARKETS IN ALL REGIONS OILDRILLING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11344 UP 205 OR 18 WITH ROWAN OF THE US POSTING A 52 GAIN IN ITS LOCAL CURRENCY HEAVYMACHINERY STOCKS TRAILED AT 13568 DOWN 282 OR 2 WITH DOBSON PARK INDUSTRIES OF BRITAIN SLIDING 6 IN ITS LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 7580 POINTS ON THURSDAY FELL 20142 POINTS TO 1983648 IN TRADING MONDAY THE NIKKEI ROSE 13331 POINTS TO CLOSE THE MORNING SESSION AT 1996979 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 340 MILLION SHARES DOWN FROM 3594 MILLION SHARES A DAY EARLIER RETREATING ISSUES OUTNUMBERED ADVANCERS 682349 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH INCHED UP 019 POINT ON THURSDAY SLID 456 TO 161035 THE NIKKEI OPENED AT ITS SESSION HIGH OF 1997340 AND IMMEDIATELY FELL ON A PLUNGE IN CHICAGO IN STOCK FUTURES LINKED TO THE BENCHMARK INDEX LATE BUYING BY INDIVIDUAL INVESTORS SEEKING DIVIDENDS CUSHIONED THE DROP IN MEXICO CITY THE GOVERNMENT REASSURED INVESTORS ABOUT ECONOMIC POLICY THE STABILITY OF THE PESO CONVERTING WHAT COULD HAVE BEEN A STEEP DROP INTO A BUYING OPPORTUNITY THE MARKET WAS CLOSED THURSDAY BECAUSE OF MR COLOSIO'S SLAYING IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 73 POINTS TO 31290 THE FT 30STOCK INDEX ROSE 46 POINTS TO 24731 VOLUME WAS 8475 MILLION SHARES COMPARED WITH 7029 MILLION SHARES A DAY EARLIER PRICES REVERSED THEIR EARLY DECLINE AS INVESTORS DECIDED THAT TWO SESSIONS OF LOSSES WERE ENOUGH SHARES ALSO WERE LIFTED AS PARTICIPANTS FINISHED SQUARING BOOKS ON THE LAST DAY OF THE CURRENT TWOWEEK TRADING ACCOUNT IN FRANKFURT THE DAX 30STOCK INDEX SANK 3162 POINTS TO 213006 EARLY BUYING SHIFTED TO SELLING AS WALL STREET MOUNTED HEAVY LOSSES IN EARLY TRADING AND US BONDS SANK IN EUROPEAN TRADING IN MILAN SHARES INCLUDING THOSE TRADED ELECTRONICALLY ROSE 11 DESPITE EXPECTATIONS FOR A FLAT PERFORMANCE AHEAD OF ITALIAN GENERAL ELECTIONS IN STOCKHOLM PRICES PLUNGED 19 IN THIN TRADING PUMMELED BY TURBULENCE IN SWEDISH BOND AND FOREIGN EXCHANGE MARKETS IN SINGAPORE STOCKS SLUMPED 12 INVESTORS WORRIED ABOUT POOR PERFORMANCES OF REGIONAL BOURSES AND THE KOREAN NUCLEAR SITUATION IN KUALA LUMPUR PRICES TUMBLED 14 ON PROFITTAKING 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 9403280129 940328 TECHNOLOGY & HEALTH AMERITECH SETS CHARGE AS PART OF JOB CUTTING BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL AMERITECH CORP PLANS TO TAKE A 335 MILLION CHARGE AGAINST FIRSTQUARTER EARNINGS OR ABOUT 60 CENTS A SHARE TO SWEETEN SEVERANCE TERMS FOR CUTTING 6000 JOBS BY THE END OF 1995 THE WORK FORCE REDUCTION AIMED AT ITS 48000 NONMANAGEMENT EMPLOYEES IS THE FIRST MAJOR DOWNSIZING ANNOUNCED BY THE CHICAGOBASED TELEPHONE COMPANY HOWEVER AMERITECH HAS BEEN QUIETLY REDUCING ITS MANAGEMENT RANKS FOR MORE THAN TWO YEARS USING A COMBINATION OF ATTRITION RETIREMENT AND LAYOFFS THE COMPANY HAS SHRUNK ITS WHITECOLLAR WORK FORCE TO 17000 FROM 26500 IN THE PAST 30 MONTHS JOHN EDWARDSON AMERITECH'S CHIEF FINANCIAL OFFICER SAID THERE WAS NO FORMAL ANNOUNCEMENT ON THAT WHITECOLLAR REDUCTION MR EDWARDSON SAID OUR APPROACH WAS JUST TO GET IT DONE IN THE FIRST QUARTER OF 1993 AMERITECH EARNED 3373 MILLION OR 125 A SHARE ON REVENUE OF 28 BILLION AMERITECH CLOSED FRIDAY AT 39625 DOWN 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING LATE LAST WEEK NYNEX CORP ANNOUNCED A 13 BILLION CHARGE TO SWEETEN SEVERANCE TERMS FOR CUTTING 16800 JOBS ON TOP OF 700 MILLION IT HAD ALREADY TAKEN TO MAKE THOSE CUTS MR EDWARDSON SAID AMERITECH HOPES TO ELIMINATE THE 6000 POSITIONS BY VOLUNTARY MEANS BUT HE INDICATED THE BABY BELL WOULD BE WILLING TO RESORT TO LAYOFFS TO MEET ITS DOWNSIZING GOAL IF NECESSARY WE HOPE THAT WON'T HAPPEN HE SAID AMERITECH WHICH HAS 67000 EMPLOYEES WORKED OUT TERMS OF ITS SEVERANCE SWEETENER WITH UNION LEADERS FROM THE COMMUNICATIONS WORKERS OF AMERICA AND THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS A PENSION ENHANCEMENT ADDS THREE YEARS OF AGE AND SERVICE TO THE FORMULA FOR CALCULATING RETIREMENT BENEFITS FOR ELIGIBLE NONMANAGEMENT EMPLOYEES WHO TERMINATE THEIR EMPLOYMENT WITH THE COMPANY BEFORE MID1995 UNION LEADERS COULD NOT BE REACHED FOR COMMENT AMERITECH IS PUSHING A PLAN THAT ENCOURAGES COMPETITION FOR LOCAL PHONE SERVICE IN ILLINOIS ONE OF FIVE MIDWESTERN STATES IT SERVES IN EXCHANGE FOR THE RIGHT TO ENTER THE LONGDISTANCE BUSINESS IT ALSO PLANS TO BUILD SEPARATE INTERACTIVE NETWORKS IN COMMUNITIES ACROSS ITS SERVICE AREA 9403280128 940328 THE PLEASURES OF TRAVELING ON BUSINESS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL RONALD J KUZLIK HATES TRAVELING ALONE SO ON A BUSINESS TRIP TO ALBUQUERQUE NM THE NEW YORK ACCOUNTANT BROUGHT ALONG HIS WIFE LINDA AND LITTLE SAMANTHA SHE LOVED IT OUT THERE MR KUZLIK SAYS OF SAMANTHA NEW MEXICO IS WIDEOPEN COUNTRY SAMANTHA HAPPENS TO BE A DOG BUT SOME EMPLOYEES DO ALL THEY CAN TO ADD ZEST TO BANAL BUSINESS TRIPS STAYING OVER A WEEKEND IF THE WEATHER AND RESTAURANTS SEEM PROMISING OR SHARING A NEW CITY WITH A SPOUSE OR CHILD OR HOUSEHOLD PET FOR THAT MATTER CAN BE GOOD DIVIDENDS FOR THE GARMENTBAG AND LAPTOP CROWD MOST COMPANIES ARE INDIFFERENT TO WORKERS' COMMINGLING BUSINESS AND LEISURE TRAVEL AS LONG AS THE FUN AND GAMES DON'T RAISE COSTS BUT SOME CORPORATE TRAVEL MANAGERS SAY LAX OVERSIGHT ENABLES CANNY EMPLOYEES TO UNETHICALLY EXPLOIT BUSINESS TRIPS FOR PRIVATE PURPOSES OF COURSE THE DISTINCTION BETWEEN BUSINESS AND LEISURE TRAVEL HAS ALWAYS BEEN BLURRY PARTICULARLY FOR CORPORATE CHIEFTAINS WHO BELIEVE SOCIALIZING WITH OTHER EXECUTIVES IN PARIS OR TOKYO IS ALL PART OF THE JOB BUT SEVERAL TRENDS IN RECENT YEARS HAVE HELPED MANY AVERAGE JOES TURN COMPANY TRAVEL INTO PERSONAL VACATIONS FREQUENTFLIER PROGRAMS ALLOW BUSINESS TRAVELERS TO BRING ALONG A SPOUSE OR CHILD WITHOUT SPENDING A PERSONAL DIME ON AIR FARE AND ADVANCEPURCHASE DISCOUNT AIR FARES WHICH USUALLY REQUIRE SPENDING A SATURDAY NIGHT MAKE IT AFFORDABLE FOR BUSINESS TRAVELERS TO BRING ALONG COMPANIONS MANY COMPANIES HAVE BEGUN ENCOURAGING EMPLOYEES TO TAKE THE LOW FARES BY PAYING THE BILL FOR EXTRA HOTEL AND MEAL COSTS EVEN THOUGH LIABILITY FOR A TRAVELING EMPLOYEE WHO ISN'T TECHNICALLY WORKING IS A TRICKY ISSUE WHAT IF THERE IS AN ACCIDENT OVER THE WEEKEND OR GOD FORBID THE PLANE GOES DOWN ON SUNDAY WHEN THE EMPLOYEE WAS SUPPOSED TO COME HOME SATURDAY ASKS RUDOPH MONTELEONE CHAIRMAN OF THE ASSOCIATION OF CORPORATE TRAVEL MANAGERS ARE YOU STILL ON BUSINESS HAVING LONG AGO CUT WEEKEND RATES IN RESPONSE TO SLACK DEMAND TRAVEL SUPPLIERS OF ALL SORTS ARE NOW ACTIVELY ENCOURAGING CUSTOMERS TO STRETCH A WEEKDAY BUSINESS TRIP INTO A WEEKEND ADVENTURE IT'S AN ATTACK SEGMENT IN GROWTH OPPORTUNITY SAYS GEOFF CORBETT EXECUTIVE VICE PRESIDENT OF NATIONAL CAR RENTAL SYSTEM INC A UNIT OF GENERAL MOTORS CORP IN AN EFFORT TO ENCOURAGE WORKDAY RENTERS TO SPEND THE WEEKEND NATIONAL JUST HELD A SWEEPSTAKES IN WHICH IT AWARDED THREE FREE TRIPS TO THE NCAA FINAL FOUR BASKETBALL CHAMPIONSHIP GAMES IN CHARLOTTE NC NOVOTEL NEW YORK GIVES OUT A SATURDAY NIGHT SURVIVAL KIT WHICH INCLUDES A BOTTLE OF BUBBLE BATH FOR BUSINESS TRAVELERS WHO STAY THE WEEKEND THE HOTEL PRACTICALLY BEGS ITS GUESTS TO BRING ALONG THEIR SIGNIFICANT OTHER OUR RESERVATION PEOPLE SPECIFICALLY SUGGEST THAT GUESTS BRING ALONG THEIR SPOUSES SAYS STEVE BAKER SALES DIRECTOR OF NOVOTEL A UNIT OF ACCOR GROUP IN PARIS AND MANY HOTELS ARE MAKING IT EASIER TO BRING JUNIOR ALONG BY OFFERING CHILDCARE FACILITIES AT THE REGISTRY RESORT IN NAPLES FLA A CHILDREN'S CENTER ORGANIZES TUMBLING TREASURE HUNTS EVENING PARTIES AND OTHER ACTIVITIES THE CENTER SERVES A GROWING NUMBER OF CHILDREN WHO ARE JOINING PARENTS ATTENDING BUSINESS CONFERENCES SAYS ALAN R D'ZURILLA THE PROPERTY'S VICE PRESIDENT OF SALES SOME BUSINESSPEOPLE NOT ONLY PERMIT THEIR CHILDREN TO TRAVEL WITH THEM BUT PURSUE IT WITH PASSION CONSIDER GARY S SPICER OF GROSSE POINTE MICH A SPORTS AND ENTERTAINMENT LAWYER WHO IS THE FATHER OF SIX CHILDREN AGES 10 TO 21 AS SOON AS THEY GET OUT OF DIAPERS WE PUT THEM ON AN AMBITIOUS TRAVEL PROGRAM MR SPICER SAYS MR SPICER HAS HAD HIS CHILDREN ACCOMPANY HIM USUALLY ONE OR TWO AT A TIME ON BUSINESS TRIPS TO THE JOHN HANCOCK TOWER IN CHICAGO OPRYLAND IN NASHVILLE THE KENNEDY LIBRARY IN BOSTON AND THE CAPITOL IN WASHINGTON A VISIT TO THE GRAND CANYON IN ARIZONA WITH ONE SON HE SAYS WAS ONE OF THE MOST EMOTIONAL EXPERIENCES I'VE EVER HAD DO THE YOUNGSTERS CRIMP HIS ABILITY TO DO BUSINESS NO INSISTS MR SPICER SAYING HIS KIDS HAVE ACTUALLY HELPED BY BEFRIENDING CLIENTS LIKE DON BAYLOR THE MANAGER OF BASEBALL'S COLORADO ROCKIES AND THE LATE COUNTRY SINGER CONWAY TWITTY MR SPICER SAYS HE PAYS THE EXTRA TRAVEL COSTS FOR HIS CHILDREN AND IT'S WORTH IT BUT QUALITY TIME ISN'T ALWAYS POSSIBLE FOR TAGALONG SPOUSES WHO FIND THEMSELVES IN A STRANGE CITY ALONE WHILE THEIR PARTNERS TEND TO BUSINESS YOU'LL BE EATING LUNCH BY YOURSELF AND SOMETIMES IT'S LONELY SAYS NANCY ZEIDMAN A WASHINGTON DC BEREAVEMENT COUNSELOR WHO ONCE ACCOMPANIED HER HUSBAND PHILIP ON A GRIM SIXDAY BUSINESS TRIP TO BUDAPEST IN THE DEAD OF WINTER HER SOLUTION IF SHE'S NOT INTERESTED IN A CITY SHE STAYS HOME I DON'T DO PEORIA BUT I SURE DO LONDON SHE SAYS FOR COMPANIES THERE IS A DARK SIDE TO COMBINING BUSINESS WITH PLEASURE ACCORDING TO SEVERAL CORPORATE TRAVEL MANAGERS PROBLEMS ARISE WHEN EMPLOYEES PUT THEIR PERSONAL PLANS AHEAD OF BUSINESS GOALS AND BYPASS COMPANY POLICY TO GET THEIR VACATIONS SUBSIDIZED WHEN EMPLOYEES TRAVEL WITH FAMILY MEMBERS THESE MANAGERS SAY THEY OFTEN TRY TO STAY IN LARGER HOTEL ROOMS OR THEY CLAIM AS EXPENSES MEALS THAT HAVE NO BUSINESS VALUE A MORE SOPHISTICATED DECEPTION OCCURS WHEN AN EMPLOYEE BUYS A FULLFARE UNRESTRICTED TICKET FOR A BUSINESS TRIP THEN TRADES IT IN FOR TWO HALFPRICE ADVANCEPURCHASE TICKETS ONE FOR THE EMPLOYEE ONE FOR THE SPOUSE SIMILARLY SOME EMPLOYEES EXCHANGE A BUSINESSCLASS TICKET FOR TWO COACH TICKETS THE AIRLINE DOESN'T CARE IT RECEIVES THE SAME AMOUNT OF REVENUE AND THE EMPLOYEE IF SMART CAN SHIELD THE SWITCH FROM THE COMPANY BUT THE COMPANY WHICH COULD HAVE BENEFITED FROM THE DISCOUNT IS OUT OF THE LOOP WHY DO CORPORATIONS TOLERATE SUCH PRACTICES BECAUSE SO MANY PEOPLE INCLUDING TOP EXECUTIVES BENEFIT FROM LAX ENFORCEMENT OF TRAVEL POLICY TRAVEL MANAGERS SAY IF THERE ARE ISSUES FOR MANAGEMENT TO TAKE STANDS ON THERE ARE PROBABLY MORE IMPORTANT ONES THAN THIS SAYS DENNY LEWIS A SENIOR VICE PRESIDENT FOR THE USTRAVEL AGENCY HE NOTES THAT REAL SAVINGS OCCUR IN SUPPLIER NEGOTIATIONS NOT BY SCRUTINIZING EMPLOYEES' TRAVEL PLANS TRAVEL MANAGERS' RESERVATIONS AREN'T ENOUGH TO DISSUADE EMPLOYEES FROM MERGING WORK AND PLAY WHILE ON THE ROAD JACK A SULLIVAN FOR ONE IS GRATEFUL THAT HIS WIFE JOINED HIM ON A BUSINESS TRIP SEVERAL YEARS AGO TO PARIS THE SAN FRANCISCO STOCKBROKER RAN IN THE CITY'S MARATHON THE LAST COUPLE MILES SHE COAXED ME IN TO THE FINISH LINE MR SULLIVAN SAID WITHOUT HER I COULD STILL BE WANDERING THE STREETS OF PARIS 9403280127 940328 HEARD ON THE STREET MORE ANALYSTS ARE GETTING TO LIKE SARA LEE AS COMPANY TACKLES PROBLEMS THAT PLAGUE IT BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL SARA LEE'S STOCK IS SNAGGED ON THE COMPANY'S HOSIERY BUSINESS THE CHICAGOBASED COMPANY GETS MORE THAN HALF ITS EARNINGS FROM NONFOOD PRODUCTS SUCH AS HANES UNDERWEAR CHAMPION SWEATS AND KIWI SHOE POLISH LATELY IT'S BEEN L'EGGS PANTYHOSE AND OTHER HOSIERY ITEMS THAT HAVE CAUSED A VERITABLE RUN ON THE STOCK BY INVESTORS BUT NOW THE SHARES ARE STARTING TO SHOW UP ON A FEW WALL STREET BUY LISTS ADMIRERS SAY THE MULTINATIONAL MAKER OF SUCH NAMEBRAND GOODS AS HILLSHIRE FARM MEATS PLAYTEX BRAS COACH LEATHER GOODS AND ISOTONER GLOVES AS WELL AS SARA LEE CAKES IS TACKLING ITS PROBLEMS WITH A RESOLVE THAT PROMISES TO PUT THE COMPANY ON THE MEND THOUGH IT HAS PREDICTED FLAT EARNINGS FOR THE CURRENT THIRD QUARTER THE STOCK CLOSED FRIDAY AT 21 5/8 UP 1/8 AT A RECENT CLOSEDDOOR SESSION IN A SCOTTSDALE ARIZ RESORT JOHN H BRYAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER DELIVERED WHAT ONE APPROVING ANALYST CALLS A MANAGEMENT MEA CULPA HE SAID THE NEW WORLD ORDER REQUIRES THAT WE SHALL INVEST IN VERTICAL INTEGRATION NO MORE ACCORDING TO A TAPE OF HIS REMARKS PROVIDED BY ANALYSTS IN OTHER WORDS SARA LEE INCREASINGLY WILL GRAB LABOR AND RAW GOODS WHEREVER IT CAN GET THE BEST DEAL SUCH AS CHINA SARA LEE WILL BE MUCH MORE CAUTIOUS ABOUT ACQUISITIONS MR BRYAN INDICATED FOR YEARS THE STREET ADMIRED ITS ABILITY TO GOBBLE UP REGIONAL BRANDS BUT IN EUROPE THE TACTIC WENT AMISS SARA LEE HAD TOO MANY PRODUCTS IN TOO MANY CHANNELS IN TOO MANY COUNTRIES WITHOUT THOROUGHLY UNDERSTANDING THE CULTURAL DIFFERENCES ONE EXECUTIVE CONFESSED TO THE ANALYSTS HOW TO REFORM WE WILL MANAGE FOR BETTER CASH FLOW AND PUT AN EMPHASIS ON LOWCOST PRODUCTION DONALD FRANCESCHINI THE EXECUTIVE IN CHARGE OF PERSONAL PRODUCTS INCLUDING HOSIERY AND KNITWEAR SAID IN ARIZONA WE WILL ALSO TAKE A MORE AGGRESSIVE POSITION ON SPINNING OFF MARGINAL BUSINESSES IT'S UP OR OUT SARA LEE INITIALLY FAILED TO SPOT A US TREND TOWARD CASUAL DRESS BY WORKING WOMEN A MISSTEP THAT PUT A BIG HOLE IN ITS 1 BILLIONAYEAR HOSIERY BUSINESS IT FAILED TO TELL CONSUMERS WHY THEY SHOULD KEEP BUYING L'EGGS NOW THE COMPANY WILL SPEND MORE ON ADVERTISING LESS ON INSTORE PROMOTION INNOVATION IS COMING WE WANT TO MAKE CERTAIN THAT OUR BRANDED PRODUCTS OFFER SOMETHING UNIQUE TO THE CUSTOMER MR FRANCESCHINI SAID ALLUDING TO A TYPE OF PANTYHOSE THAT SMOOTHES THE FIGURE FROM WAIST TO TOE FEWER ACQUISITIONS AND RESTRAINED CAPITAL SPENDING WILL LEAVE MORE MONEY TO BUY BACK STOCK SOME BULLS HOPE LES PUGH AT SALOMON BROTHERS PREDICTS AN AGGRESSIVE STOCKREPURCHASE PROGRAM IN THE NEXT YEAR OR SO AND RATES THE STOCK A LONGTERM BUY PRUDENTIAL SECURITIES' JOHN MCMILLIN SAYS FREE CASH FLOW COULD GO FROM 200 MILLION TO 400 MILLION NEXT YEAR CALLING MR BRYAN'S REVISED COURSE THE PRAGMATIC THING HE RAISED HIS OPINION TO BUY FROM HOLD AFTER THE SCOTTSDALE CONFERENCE ESTIMATING FISCAL 1994 EARNINGS AT 148 A SHARE AND NEXT YEAR'S AT 163 HE SEES POSSIBLE SOURCING ADVANTAGES OVER RIVAL COMPANIES SUCH AS FRUIT OF THE LOOM AS SARA LEE EXPANDS INTO CHINA AND OTHER AREAS IN CHINA EXECUTIVES TOLD ANALYSTS SARA LEE AIMS TO BEGIN A DIRECTSALES OPERATION IN THE YEAR STARTING THIS JULY SELLING SOCKS SHOE POLISH AND OTHER PERSONAL ITEMS DOOR TO DOOR SARA LEE CAN GENERATE DOUBLEDIGIT ANNUAL EARNINGS GROWTH OVER THE NEXT FIVE YEARS MORGAN STANLEY'S ERIC J LARSON TELLS CLIENTS REITERATING A LONGTIME BUY ON THE STOCK IF AN INVESTOR IS ABLE TO STOMACH THE NEXT TWO OR THREE QUARTERS THIS STOCK IS ATTRACTIVELY PRICED OTHER ANALYSTS AREN'T SO SURE NOMI GHEZ AT GOLDMAN SACHS RATES SARA LEE A MARKET PERFORMER IT LOOKS CHEAP AT LESS THAN 15 TIMES TRAILING EARNINGS BUT SHE HEARD LITTLE AT THE CONFERENCE TO MAKE US CHANGE OUR EXPECTATIONS FOR THIS YEAR AND NEXT THE CURRENT PROBLEMS AFFECT LARGE AND GEOGRAPHICALLY WIDESPREAD BUSINESSES AND WILL THEREFORE TAKE SOME TIME TO CORRECT DAVID RABINOWITZ AT KIDDER PEABODY RATES THE STOCK NEUTRAL SEEING LITTLE ROOM FOR AN UPSIDE SURPRISE IN THE CURRENT FISCAL SECOND HALF TO REPORT EVEN FLAT RESULTS FOR THE PERIOD HE SAYS SARA LEE WILL HAVE TO DELIVER STRONG GAINS FROM BOTH ITS PACKAGED MEATS/BAKERY AND HOUSEHOLD/PERSONAL CARE UNITS WHICH TOGETHER RIVAL PERSONAL PRODUCTS IN SALES IF THE MULTIPLE FALLS FAR ENOUGH IT COULD MEET OUR CRITERIA SAYS JAMES A MILLER SENIOR PORTFOLIO MANAGER AT CINCINNATIBASED BARTLETT CAPITAL BASIC VALUE FUND BUT FOR NOW WE'RE FINDING CHEAPER STOCKS ELSEWHERE 9403280126 940328 DETROIT MAYOR BACKS TIGERS' OWNER IN PITCH FOR NEW BASEBALL COMPLEX BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT WITH AN ENDORSEMENT BY MAYOR DENNIS ARCHER MIKE ILITCH THE OWNER OF THE DETROIT TIGERS AND LITTLE CAESAR'S PIZZA GOT A BIG BOOST FOR HIS PLANS TO RESCUE THIS CITY FROM ITS STATUS AS INTERNATIONAL SYMBOL OF URBAN BLIGHT ON FRIDAY THE MAYOR AGREED TO SUPPORT MR ILITCH'S BID FOR A 375 MILLION DOWNTOWN STADIUM PROJECT FOR THE BASEBALL CLUB THE PIZZA KING'S LONGTERM VISION ALSO ENCOMPASSES SHADED PROMENADES A REVIVED RETAIL ALLEY AND A BRIGHTLY LIT THEATER DISTRICT SUPPLANTING TRASHSTREWN LOTS AND ABANDONED CRUMBLING BUILDINGS THERE'S JUST ONE CATCH MR ILITCH WANTS 200 MILLION IN PUBLIC MONEY FOR ROADS BRIDGES AND LAND ACQUISITION AND IN MICHIGAN WHERE ANTITAX SENTIMENT IS HIGH AND SUSPICION OF TAXFINANCED MONUMENTS IN DETROIT RUNS DEEP THAT HAS TURNED WHAT OUGHT TO BE A FAT PITCH INTO A POLITICAL HARD SLIDER MR ILITCH IS ASKING THE PEOPLE OF THE STATE OF MICHIGAN TO GO INTO BUSINESS WITH HIM SAYS REPUBLICAN STATE REP FRANK FITZGERALD A KEY PLAYER IN THE DEBATE IF I'M HELPING TO PUT TOGETHER A 200 MILLION DEAL I WANT TO SEE WHAT I'M GOING TO GET OUT OF IT WHILE SEVERAL AMERICAN CITIES INCLUDING BALTIMORE AND CHICAGO HAVE CONFRONTED AND ACCEDED TO DEMANDS FROM PROFESSIONAL SPORTS TEAMS FOR PUBLICLY SUBSIDIZED STADIUMS THE BALL FIELD DEBATE IN DETROIT IS SHAPING UP TO BE AN UNUSUALLY COMPLEX AND EMOTIONAL DRAMA THE PLAN NOW FACES AN UNLIKELY COALITION OF TAXWARY POLITICIANS AND PRESERVATIONISTS WHO OPPOSE ANY PUBLIC FUNDING FOR A NEW TIGER STADIUM MR ARCHER HAS ALLIED HIMSELF WITH ONE OF MICHIGAN'S WEALTHIEST MEN AND ONE OF THE FEW BIGTIME DEVELOPERS WHO IS WILLING TO PUT ANY MONEY INTO DETROIT LET ALONE THE 175 MILLION THAT HE HAS PLEDGED TO BUILD THE BALLPARK ITSELF MR ILITCH MOVED HIS PIZZA COMPANY'S HEADQUARTERS INTO DETROIT AND LED THE SUCCESSFUL RENOVATION OF THE HISTORIC DOWNTOWN FOX THEATRE ON LAND ADJACENT TO HIS PROPOSED STADIUM SITE MICHIGAN'S REPUBLICAN GOV JOHN ENGLER HAS PROPOSED CREATION OF A SOCALLED SPORTS AND ENTERTAINMENT ECONOMIC DEVELOPMENT AUTHORITY OR SPEEDA WHICH COULD ISSUE BONDS BACKED BY A TAX ON INDIANRUN CASINOS TO SUBSIDIZE STADIUM CONSTRUCTION BUT THE VERY TAXCUTTING FERVOR THAT HAS MADE GOV ENGLER A RISING STAR IN THE GOP IS ONE REASON WHY THE SPEEDA PROPOSAL IS BOTTLED UP IN A COMMITEE OF WHICH REP FITZGERALD IS COCHAIRMAN REP FITZGERALD WARNS THAT THE PLAN WON'T PASS UNLESS GOV ENGLER MAYOR ARCHER AND MR ILITCH MAKE STRONG SPECIFIC ARGUMENTS FOR HOW PUBLIC MONEY FOR A STADIUM WOULD PRODUCE A REVITALIZED DETROIT THE POLITICS BREAKS DOWN TO WHETHER OR NOT WE SHOULD COMMIT OURSELVES TO AN ANNUAL SIXTO10MILLIONDOLLAR EXPENDITURE FOR STADIUM BONDS AS OPPOSED TO DOING SOMETHING ELSE REP FITZGERALD SAYS I ASSUME THERE COULD BE SOME SPINOFF DEVELOPMENT FROM A STADIUM HE ADDS THERE HASN'T BEEN A CASE MADE THAT THIS WILL RESULT 9403280125 940328 INTERNATIONAL MEXICO ASSASSIN TOLD AUTHORITIES OF TIES TO GROUP NO EVIDENCE HAS EMERGED TO CONNECT GUNMAN TO LEADING OPPOSITION BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL TIJUANA MEXICO THE ASSASSIN OF PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO IS A LONER WHO APPARENTLY MET FREQUENTLY WITH A GROUP FED UP WITH MEXICO'S TIGHTLY CONTROLLED POLITICAL SYSTEM THE EMERGING PORTRAIT OF MARIO ABURTO MARTINEZ THE 23YEAROLD MECHANIC AND CALIFORNIA MIGRANT WORKER WHO HAS ADMITTED TO KILLING MR COLOSIO IS LIKELY TO CAUSE NEW CONCERN IN MEXICO THIS HAS BEEN A YEAR OF SO MUCH TURMOIL IN MEXICO THAT AUTHORITIES HAD BEEN HOPING MR ABURTO WOULD PROVE TO BE AN INSANE GUNMAN OPERATING ALONE WHILE IT'S NOT CLEAR WHAT GROUP HE WAS ASSOCIATED WITH OR HOW LARGE IT IS SIMPLY THE IDEA THAT HE WAS PART OF A GROUP RAISES THE PROSPECT THAT MEXICO MIGHT HAVE TO ADD ORGANIZED POLITICAL VIOLENCE TO ITS LIST OF PROBLEMS WITNESSES TO MR ABURTO'S CONFESSION SAID HE TOLD THEM THAT HE BELONGED TO A VAGUELY DESCRIBED GROUP THEY SAID HE CLAIMED HE HAD PLANNED THE MURDER WITH THE GROUP'S HELP AND GRACIELA GONZALEZ A 16YEAROLD WHOM MR ABURTO WAS APPARENTLY TRYING TO WOO SAID HE SAID HE WAS FED UP THAT THE PRI ALWAYS WINS REFERRING TO THE RULING INSTITUTIONAL REVOLUTIONARY PARTY WHICH HAS HELD POWER FOR ALMOST SEVEN DECADES AND IS THE LONGEST RULING PARTY IN THE NONCOMMUNIST WORLD MISS GONZALEZ WHO MET MR ABURTO AT HIS WORKPLACE IN FEBRUARY SAID THAT HE WANTED TO DO SOMETHING SO THAT HIS PARTY COULD WIN YESTERDAY HOWEVER A GOVERNMENTOWNED NEWSPAPER REPORTED THAT MR ABURTO SAID HE ACTED ALONE AND DIDN'T BELONG TO AN ARMED POLITICAL GROUP CONTRARY TO HIS CONFESSION A FEW DAYS BEFORE THE SHOOTING MISS GONZALEZ SAID MR ABURTO AND HIS FRIENDS GOT DRUNK IN CELEBRATION OF HAVING COME TO SOME SORT OF DECISION SHE DESCRIBED MR ABURTO AS SERIOUS KIND AND GENTLEMANLY IN OTHER WORDS I NEVER LOOKED AT HIM AS A PERSON CAPABLE OF DOING THIS MISS GONZALEZ SAID SHE DOESN'T KNOW THE NAME OF THE POLITICAL GROUP THOUGH SHE DID RULE OUT MEXICO'S TWO LEADING OPPOSITION PARTIES MISS GONZALEZ WHO HAS BEEN QUESTIONED BY AUTHORITIES SAID MR ABURTO ALSO TOLD HER THAT LAST YEAR HE HAD SPENT FOUR MONTHS IN CHIAPAS BUT SHE SAID SHE LEARNED LITTLE ABOUT WHY HE WAS THERE A SUPERVISOR AT THE FACTORY WHERE MR ABURTO WORKED SAID MR ABURTO MENTIONED CHIAPAS ONLY ONCE TO CRITICIZE A GUERRILLA LEADER KNOWN AS SUBCOMMANDER MARCOS FOR FAILING TO TAKE OFF HIS MASK IT WASN'T CLEAR THAT MR ABURTO'S TIME IN CHIAPAS WAS MORE THAN COINCIDENCE IN CHIAPAS IN FACT REBEL LEADER SUBCOMMANDER MARCOS DENOUNCED THE ASSASSINATION OF MR COLOSIO AS A SETBACK FOR DEMOCRACY IN A COMMUNIQUE FROM THE JUNGLE THE REBEL LEADERSHIP BLAMED THE MURDER ON HARDLINERS WITHIN THE PRI WHO ARE WORRIED THAT MR COLOSIO WOULD GO TOO FAR TO CLEAN UP MEXICO'S POLITICAL SYSTEM A TRUNK OF MR ABURTO'S PERSONAL POSSESSIONS WHICH SHOWED UP AT A LOWLEVEL COURT OFFICE LATE LAST WEEK INCLUDED SOME PROVOCATIVE BOOKS IN ADDITION TO A BIBLE AND SOME PORNOGRAPHIC MATERIAL THE TRUNK INCLUDED A WORK BY KARL MARX AND A BOOK ON THE 1963 ASSASSINATION OF US PRESIDENT JOHN F KENNEDY A COURT OFFICIAL SAID THERE WAS ALSO A BOOK BY RAFAEL LORET DE MOLA WHOSE NOVEL THE INTERIM PRESIDENT CAUSED A STIR LAST AUTUMN IT TELLS OF THE ASSASSINATION OF A MEXICAN PRESIDENTIAL CANDIDATE IN ORDER TO ENABLE THE SITTING PRESIDENT TO RETAIN POWER BUT A COURT OFFICIAL COULDN'T SAY WHICH OF MR LORET'S BOOKS WAS FOUND MISS GONZALEZ SAID MR ABURTO WAS UPSET WITH HIS PARENTS' DIVORCE PLANS HIS FATHER LIVES IN THE LOS ANGELES AREA AND HIS MOTHER IN TIJUANA LIKE MANY IN THE DUSTY BARRIO OF WEATHERBEATEN HOMES AND OUTHOUSES MR ABURTO USED TIJUANA AS A STAGING AREA FOR FORAYS INTO CALIFORNIA TO WORK SEVERAL NEIGHBORS AND COWORKERS OF MR ABURTO DESCRIBE HIM AS A VERY CONTROLLED MAN WHO GAVE LITTLE INFORMATION ABOUT HIMSELF HIS FAMILY WAS REPORTEDLY JEHOVAH'S WITNESSES IN ROMAN CATHOLIC MEXICO MR ABURTO ALSO WAS REPORTEDLY KICKED OUT OF SCHOOL TWICE BECAUSE HE REFUSED TO RESPECT THE MEXICAN FLAG TWO WITNESSES TO HIS CONFESSION SAY HE SHOWED LITTLE EMOTION UNTIL ONE OF THE NINE PEOPLE IN THE INTERROGATION TOLD HIM MR COLOSIO HAD DIED FROM HIS HEAD WOUND MR ABURTO HAS REPORTEDLY SAID THAT HE ONLY MEANT TO WOUND MR COLOSIO EVEN THOUGH HE SHOT THE CANDIDATE IN THE HEAD AT POINTBLANK RANGE XAVIER CARVAJAL MACHADO A TIJUANA LAW SCHOOL PROFESSOR AND JOSE LUIS PEREZ CANCHOLA HEAD OF A STATE HUMAN RIGHTS COMMISSION BOTH WITNESSES TO THE CONFESSION EMPHASIZED MR ABURTO'S SERENITY DURING THE INTERROGATION ABURTO ISN'T CRAZY MR CARVAJAL MACHADO SAID HE IS A PERSON WHO IS VERY SERIOUS VERY TIGHTLIPPED AND VERY COLD BUT DURING THE CONFESSION MR ABURTO ALSO DISPLAYED A CONSISTENT LACK OF LOGIC I DID IT TO GET PRESS ATTENTION AND TO DECLARE MY PACIFIST IDEAS AND TO DENOUNCE ARMED GROUPS THAT ARE IN DIFFERENT PARTS OF THE COUNTRY AND THAT I HAVE PERSONALLY BELONGED TO MR ABURTO SAID IN HIS CONFESSION ACCORDING TO A DOCUMENT READ TO REPORTERS WHEN PRESSED TWICE BY INVESTIGATORS ABOUT WHY A PACIFIST WOULD KILL SOMEONE TO BRING ATTENTION TO HIS VIEWS MR ABURTO REFUSED TO ANSWER 9403280124 940328 MARKETING & MEDIA JONES INTERCABLE AND BCE ARE SAID TO RENEGOTIATE BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL CABLE COMPANY JONES INTERCABLE INC AND CANADIAN TELECOMMUNICATIONS GIANT BCE INC HAVE RENEGOTIATED TERMS OF THEIR ALLIANCE CUTTING THE PRICE BCE WILL PAY FOR A 30 STAKE IN JONES A PERSON CLOSE TO THE DEAL SAID THE TWO COMPANIES ARE EXPECTED TO ANNOUNCE TODAY CHANGES IN THE CONTRACT THAT REDUCE BY 5 THE LION'S SHARE OF A PLANNED 400 MILLION INVESTMENT THE CHANGES REFLECT A NEW ROUND OF FEDERAL CABLERATE CUTS THAT DENVERBASED JONES INTERCABLE SAYS WILL CRIMP ITS CASH FLOW JONES INTERCABLE RUN BY CABLE PIONEER GLENN JONES DECLINED TO COMMENT ON THE ANNOUNCEMENT OFFICIALS AT THE BCE UNIT INVOLVED IN THE DEAL COULDN'T BE REACHED FOR COMMENT YESTERDAY JONES INTERCABLE WHICH SERVES 16 MILLION US CABLE SUBSCRIBERS AND BCE'S INTERNATIONAL INVESTMENT UNIT ARE THE LATEST CABLETELEPHONE PARTNERS TO RENEGOTIATE THE VALUE OF AN AGREEMENT IN THE FACE OF ADDITIONAL CABLERATE CUTS THE FEDERAL COMMUNICATIONS COMMISSION EXPECTS TO RELEASE FURTHER DETAILS OF NEW RATE RESTRICTIONS THIS WEEK CABLE OPERATORS SAY THE RULES PUT PRESSURE ON CASH FLOW A KEY INDICATOR OF HOW CABLE SYSTEMS ARE PRICED BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC CITED THE FCC RULES IN THE COLLAPSE OF BELL ATLANTIC'S RECENT MULTIBILLIONDOLLAR PROPOSED TCI ACQUISITION AND SOUTHWESTERN BELL CORP IS RENEGOTIATING THE FINANCIAL TERMS OF ITS 49 BILLION CABLE VENTURE WITH COX ENTERPRISES INC UNDER THE NEW TERMS OF THE JONESBCE DEAL INSTEAD OF PAYING AN INITIAL 275 MILLION FOR 10 MILLION CLASS A SHARES OR 2750 APIECE BCE WILL NOW PAY 261 MILLION IN TWO STAGES THE FIRST WILL BE TO BUY A 13 INTEREST OR 25 MILLION NEWLY ISSUED SHARES AT 22 A SHARE STILL A PREMIUM OVER THE CURRENT PRICE OF ABOUT 15 A SHARE THE SECOND STEP WILL BE TO BUY THE REMAINING SHARES NEEDED TO REACH A 30 STAKE AT 2750 APIECE BCE WILL STILL INVEST 400 MILLION OVER TIME BUT INSTEAD OF COMMITTING TO PAY AN ADDITIONAL 125 MILLION IN THE FUTURE FOR NEWLY ISSUED SHARES TO FINANCE THE COMPANY AND MAINTAIN A 30 INTEREST BCE IS EXPECTED TO COMMIT TO 139 MILLION NO DATES HAVE BEEN SET FOR FUTURE INVESTMENTS THE NEW TERMS ALSO REDUCE THE PRICE OF BCE'S OPTION TO BUY CONTROL OF THE COMPANY FROM JONES INTERNATIONAL INC TO 52 MILLION FROM 55 MILLION JONES INTERCABLE IS A SUBSIDIARY OF JONES INTERNATIONAL WHICH IS WHOLLY OWNED BY MR JONES THE DEAL WHICH IS SUBJECT TO OTHER CONDITIONS IS EXPECTED TO CLOSE BY MIDSUMMER 9403280123 940328 TECHNOLOGY & HEALTH OBSCURE PANEL TO PLAY KEY ROLE SHAPING ANY HEALTHREFORM LAW INTO REAL LIFE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL IF HEALTH REFORM GOES INTO THE LAWBOOKS AN OBSCURE REGULATORY ORGANIZATION WILL LIKELY HAVE A LOT TO SAY ABOUT HOW THAT LAW WORKS ON THE GROUND THE REGULATORS' ORGANIZATION THE KANSAS CITY MO NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS HAS BEEN STUDYING FOR MONTHS THE HEALTHCARE ALLIANCES HUGE COOPERATIVES TO BUY HEALTH INSURANCE THAT FORM A KEY PART OF PRESIDENT CLINTON'S PLAN WHILE IT ISN'T CLEAR WHETHER THE HEALTHCARE ALLIANCES WILL MAKE IT THROUGH THE POLITICAL MAZE TO BECOME PART OF THE FINAL HEALTHREFORM PLAN IF THEY DO WASHINGTON WILL RELY ON STATES FOR FOLLOWUP SAID ROBERT LASZEWSKI A CONSULTANT WITH HEALTH POLICY & STRATEGY ASSOCIATES IN WASHINGTON THE STATES WILL HAVE THE POWER TO IMPLEMENT WHATEVER PASSES WHAT MANY STATES PARTICULARLY SMALL ONES WILL LIKELY DO DEPENDS ON THE OUTCOME OF A SERIES OF MEETINGS NOW UNDER WAY AMONG THE INSURANCE COMMISSIONERS IN JUNE THE ASSOCIATION IS EXPECTED TO RELEASE MODEL LEGISLATION THAT STATES CAN USE TO PATTERN THEIR OWN LAWS STATES ROUTINELY ADOPT THE MODELS DEVISED BY THE ASSOCIATION THE ASSOCIATION'S LOW PROFILE HASN'T MADE A DIFFICULT JOB ANY EASIER ALLEN FEEZOR NORTH CAROLINA'S CHIEF DEPUTY INSURANCE COMMISSIONER SAID HE IS DISAPPOINTED THAT THE ONLY OUTSIDE REACTION ON THE HEALTHCARE ALLIANCE PROPOSAL HAS COME FROM INSURERS AND CONSUMER GROUPS HE SAID THE COMMISSIONERS WOULD ALSO LIKE TO HEAR FROM EMPLOYERS AND THEIR TRADE GROUPS HIS BOSS NORTH CAROLINA INSURANCE COMMISSIONER JAMES LONG HEADS THE NAIC COMMITTEE LOOKING INTO THE ISSUE INSURANCE IS REGULATED BY THE STATES AND THE NAIC IS THE CLOSEST THING THERE IS TO NATIONAL OVERSIGHT OF THE INDUSTRY MADE UP OF INSURANCE COMMISSIONERS FROM ALL 50 STATES AND THE DISTRICT OF COLUMBIA THE ASSOCIATION MEETS SEVERAL TIMES A YEAR TO DISCUSS INDUSTRY ISSUES AND WORK ON MODEL LEGISLATION THE GROUP HAS BECOME MORE ACTIVE IN RECENT YEARS AFTER THE FAILURE OF SEVERAL LARGE LIFE INSURERS PROMPTED CALLS FOR FEDERAL REGULATION ITS PROPOSAL FOUR YEARS AGO ON HOW TO REFORM LEGISLATION GOVERNING HEALTHINSURANCE RATES WAS SUBSEQUENTLY ADOPTED BY 40 STATES DESPITE THE CONTROVERSY SURROUNDING ALLIANCES THE CONCEPT ITSELF IS SIMPLE EMPLOYERS POOL TOGETHER IN GROUPS TO BUY HEALTH INSURANCE AND GET THE VOLUME DISCOUNTS AND OTHER PRIVILEGES THAT COME WITH GROUP PURCHASING BUT SETTING THE ALLIANCES UP IS TRICKY WASHINGTON WILL DECIDE THE BROAD OUTLINES OF WHAT AN ALLIANCE SHOULD LOOK LIKE THEN STATES WILL TAKE OVER THE INSURANCE COMMISSIONERS ARE CURRENTLY WORKING ON A VOLUNTARY PLAN IN WHICH COOPS COMPETE WITH INSURANCE COMPANIES FOR BUSINESS LATER THE GROUP WILL LOOK AT MANDATORY ALLIANCES FAVORED BY MR CLINTON WHICH GIVE CONSUMERS NO CHOICE BUT TO BUY FROM THE COOP THE WHITE HOUSE ARGUES THAT'S THE ONLY WAY TO ACHIEVE THE PRESIDENT'S GOALS OF UNIVERSAL COVERAGE AND MORE AFFORDABLE COVERAGE BUT THE VIEW FROM CAPITOL HILL IS THAT THE LARGE MANDATORY HEALTHINSURANCE PURCHASING COOPS SUPPORTED BY MR CLINTON FOR ALL EMPLOYERS WITH FEWER THAN 5000 WORKERS WON'T BECOME REALITY INSTEAD A SYSTEM OF VOLUNTARY ALLIANCES TO HELP GIVE SMALL BUSINESSES CLOUT IN THE HEALTHCARE MARKET IS LIKELY TO BE ADOPTED STATES ARE LIKELY TO BE GIVEN THE OPTION OF SETTING UP A MANDATORY ALLIANCE SYSTEM IF THEY WISH HOWEVER UNDER THE VOLUNTARY PLAN NOW BEING CRAFTED BY THE COMMISSIONERS STATES COULD HAVE SEVERAL ALLIANCES BUT EACH ALLIANCE WOULD SERVE A DISTINCT REGION WITHOUT COMPETITION FROM OTHER ALLIANCES HEALTH PLANS THAT SELL THROUGH THE ALLIANCES WOULD HAVE TO OFFER IDENTICAL SETS OF BENEFITS THE PLANS WOULD HAVE TO CHARGE EVERYONE IN THE SAME AGE GROUP AND REGION THE SAME RATE REGARDLESS OF HEALTH GENDER AND OCCUPATION REGIONAL ADVISORY BOARDS WOULD OVERSEE THE ALLIANCES EMPLOYERS RATHER THAN EMPLOYEES WOULD SELECT SPECIFIC HEALTH PLANS HEALTHINSURANCE BROKERS AND AGENTS WHOSE JOBS WOULD VANISH UNDER THE CLINTON PROPOSAL COULD PROBABLY CONTINUE TO ADVISE EMPLOYERS ON CHOOSING A HEALTH PLAN SOME INSURANCE COMPANIES OBJECT TO HOW THE PROPOSED ALLIANCES WOULD LIMIT THE NUMBER OF PLANS BEING OFFERED FOR INSTANCE INSTEAD OF BEING ABLE TO CHOOSE FROM 60 DIFFERENT HEALTH PLANS AS THEY CAN NOW EMPLOYERS MIGHT GET TO CHOOSE FROM ONLY 10 WITHIN THE ALLIANCE MR FEEZOR SAYS IT'S UNREALISTIC TO ALLOW EVERY INSURER TO SELL THROUGH THE ALLIANCE I DON'T KNOW TOO MANY BIG EMPLOYERS THAT OFFER EVERY PLAN TO THEIR EMPLOYEES HE SAID MANY INSURERS ALSO OBJECT TO REGIONAL LIMITS ON ALLIANCES THEY WOULD RATHER HAVE ALLIANCES COMPETING WITH EACH OTHER THAT WAY AN INSURANCE COMPANY REJECTED BY ONE ALLIANCE MIGHT FIND A HOME AT ANOTHER ONE 9403280121 940328 POLITICS & POLICY WHITEWATER COUNSEL ASKS WHETHER AIDES OF CLINTON TARGETED FOE IN RTC INQUIRY BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITEWATER SPECIAL COUNSEL IS INVESTIGATING WHETHER TWO WHITE HOUSE AIDES IMPROPERLY SOUGHT TO REMOVE A POLITICAL FOE FROM THE RESOLUTION TRUST CORP'S INQUIRY INTO MADISON GUARANTY SAVINGS & LOAN A FEDERAL GRAND JURY IS SCHEDULED TO HEAR TESTIMONY TOMORROW FROM JOSH STEINER THE TREASURY CHIEF OF STAFF ABOUT A FEB 25 TELEPHONE CALL HE RECEIVED FROM GEORGE STEPHANOPOULOS ONE OF PRESIDENT CLINTON'S CLOSEST AIDES MR STEPHANOPOULOS CALLED TO COMPLAIN THAT THE RTC HAD ASSIGNED THE LAW FIRM OF JAY B STEPHENS TO LOOK INTO THE MADISON CASE MR STEPHENS A REPUBLICAN ASSAILED THE ADMINISTRATION WHEN HE WAS REMOVED FROM HIS POST AS US ATTORNEY HERE WITH THE CHANGE OF ADMINISTRATIONS LAST YEAR HIS REVIEW OF CIVIL LIABILITIES LINKED TO THE FAILURE OF MADISON WILL INCLUDE LOOKING AT THE ROLE OF THE ROSE LAW FIRM AND HILLARY RODHAM CLINTON IN REPRESENTING THE ARKANSAS THRIFT ACCORDING TO ADMINISTRATION OFFICIALS SPECIAL COUNSEL ROBERT B FISKE HAS OBTAINED A DIARY KEPT BY MR STEINER THAT MAY REFLECT HIS ACCOUNT OF THE TELEPHONE CALL FROM MR STEPHANOPOULOS OFFICIALS SAY THE DIARY MAY INDICATE THAT THE WHITE HOUSE AIDE ASKED IF ANYTHING COULD BE DONE TO REMOVE MR STEPHENS MR STEPHANOPOULOS ACKNOWLEDGED IN INTERVIEWS OVER THE WEEKEND THAT HE CALLED HIS FRIEND MR STEINER TO BLOW OFF STEAM ABOUT THE HIRING OF MR STEPHENS I WAS VERY PUZZLED BY THIS DECISION MR STEPHANOPOULOS SAID OF THE RTC'S RETAINING MR STEPHENS BUT HE DENIED ASKING IF MR STEPHENS COULD BE REMOVED AND MAINTAINED THAT ONCE HE TALKED WITH MR STEINER THAT ENDED THE MATTER AS FAR AS I WAS CONCERNED MOST MAJOR LAW FIRMS HAVE BID ON AND HAVE RECEIVED SOME OF THE RTC WORK THE COMMITTEE THAT SELECTED MR STEPHENS'S FIRM PILLSBURY MADISON & SUTRO MAY HAVE CONSIDERED IT A NATURAL BECAUSE OF THE FORMER PROSECUTOR'S EXPERIENCE IN PUTTING TOGETHER COMPLEX CASES BUT EVEN SOME OF THE ADMINISTRATION'S STAUNCHEST CRITICS QUESTIONED THE PRUDENCE OF THE MOVE THE CALLS ABOUT MR STEPHENS WERE REPORTED IN SATURDAY'S WASHINGTON POST REP JIM LEACH R IOWA WHO HAS BECOME THE ADMINISTRATION'S NEMESIS IN THE HOUSE ON THE WHITEWATER MATTER SAID ON NBC'S MEET THE PRESS YESTERDAY THAT IT WAS NATURAL THAT THEY WOULD BE UPSET WITH THE APPOINTMENT THE WHITE HOUSE MAY HAVE MADE A MISTAKE BUT IT WOULD BE PREMATURE TO DRAW ANY EXTRAORDINARY CONCLUSIONS I HOPE WE DON'T MAKE TOO MUCH OF THIS PART OF THE STORY MR STEPHANOPOULOS SAID THAT IN THE COURSE OF HIS CONVERSATION WITH MR STEINER I ASKED HOW JAY STEPHENS HAD BEEN RETAINED DO I WISH NOW THAT I HADN'T GOTTEN ANGRY THAT I HADN'T BLOWN OFF STEAM OF COURSE I DO I WISH I HADN'T GOTTEN ANGRY MEANWHILE MR FISKE IS ALSO LOOKING INTO A CONFERENCE CALL THE SAME DAY FROM MR STEPHANOPOULOS AND THE WHITE HOUSE DEPUTY CHIEF OF STAFF HAROLD ICKES TO ROGER ALTMAN THE DEPUTY TREASURY SECRETARY WHO WAS THE ACTING HEAD OF THE RTC IN THAT CALL THE TWO WHITE HOUSE AIDES ARE SAID TO HAVE COMPLAINED THAT MR ALTMAN TOLD THE NEW YORK TIMES THAT HE WAS RECUSING HIMSELF FROM DEALING WITH THE MADISON CASE BEFORE HE HAD NOTIFIED THE WHITE HOUSE MR FISKE IS ALSO REVIEWING WHETHER EITHER OF THE TWO CLINTON AIDES ASKED MR ALTMAN IF HE COULD REMOVE MR STEPHENS FROM THE CASE MR STEPHANOPOULOS SAID THAT HE DOESN'T RECALL TALKING TO MR ALTMAN ABOUT MR STEPHENS ALL I REMEMBER ABOUT THE CONVERSATION WITH MR ALTMAN WAS THAT WE ASKED MR ALTMAN TO EXPLAIN HIS DECISION TO RECUSE HIMSELF FROM ALL OF THE MATTER MR STEPHANOPOULOS SAID I SUGGESTED THAT AS A COURTESY TO THE PRESIDENT HE WRITE THE PRESIDENT A NOTE EXPLAINING THE DECISION THAT'S ALL I REMEMBER ABOUT THE CONVERSATION REP LEACH IN THE MEET THE PRESS INTERVIEW SAID I TIP MY HAT TO CHARLES BANKS THE FORMER U S ATTORNEY IN LITTLE ROCK FOR DEFERRING THE RTC'S REQUEST FOR A CRIMINAL INVESTIGATION OF MADISON DURING THE 1992 ELECTION CAMPAIGN MR BANKS'S DECISION REPORTED IN THE LOS ANGELES TIMES WOULD HAVE BEEN AN ABUSE OF POWER TO RAISE THE ISSUE JUST BEFORE THE ELECTION MR LEACH SAID 9403280119 940308 IMMIGRANTBASHING'S LATEST FALSEHOOD BY JOHN J MILLER CRIMINAL IMMIGRANTS GRABBED HOLD OF NATIONAL HEADLINES LAST WEEK AND WOULDN'T LET GO ON FRIDAY A FEDERAL JURY CONVICTED THREE PALESTINIANS AND AN EGYPTIAN IN THE WORLD TRADE CENTER BOMBING ON WEDNESDAY A LEBANESE IMMIGRANT WAS CHARGED WITH A DRIVEBY SHOOTING ON THE BROOKLYN BRIDGE ON MONDAY POLICE IN WASHINGTON CAPTURED A NIGERIANBORN JOURNALIST WHOSE BOMB THREAT ON THE 14TH STREET BRIDGE OVER THE POTOMAC RIVER BACKED UP RUSHHOUR TRAFFIC FOR 10 MILES IN NORTHERN VIRGINIA ALL OF THIS SEEMS TO CONFIRM WHAT POLLS SAY MOST AMERICANS ALREADY BELIEVE IMMIGRANTS WORSEN THE US CRIME PROBLEM IMMIGRANTS HAVE BEEN IMPLICATED IN EVERYTHING FROM THE LONG ISLAND RAIL ROAD MASSACRE TO A PAIR OF MURDERS OUTSIDE CIA HEADQUARTERS EVEN THE BOBBITT AFFAIR HAD AN IMMIGRATION TWIST LORENA IS FROM ECUADOR THESE POWERFUL IMAGES HOWEVER ADD UP TO ALMOST NOTHING IMMIGRANTS ARE NO MORE PRONE TO CRIMINAL BEHAVIOR THAN ANYBODY ELSE YET IN THE COMING POLITICAL SEASON WHICH WILL FEATURE ELECTIONS IN SEVERAL STATES HEAVILY AFFECTED BY IMMIGRATION EXPECT OPPORTUNISTS OF ALL STRIPES TO EXPLOIT POPULAR MISCONCEPTIONS JUST AS THE COUNTRY SUDDENLY WANTS A TOUGH STANCE ON CRIME IT ALSO APPEARS TO HAVE THE IMMIGRATION JITTERS SEVERAL RECENT POLLS SEEM TO SHOW THE PUBLIC TREATING ALL IMMIGRANTS AS ACCOMPLICES TO THE CRIMINAL ACTIONS OF A FEW ACCORDING TO A NEWSWEEK SURVEY 60 OF THE PUBLIC CONSIDERS IMMIGRATION A BAD THING FOR THE COUNTRY TODAY A NEW YORK TIMES/CBS NEWS STUDY FOUND THAT 61 OF AMERICANS THINK IMMIGRATION LEVELS SHOULD BE REDUCED UP FROM 49 IN 1986 WHEN CONGRESS PASSED THE IMMIGRATION REFORM AND CONTROL ACT IN CALIFORNIA HOME TO ABOUT ONETHIRD OF ALL FOREIGNBORN AMERICANS GOV PETE WILSON WATCHED HIS DISMAL APPROVAL RATINGS SHOOT UPWARD SHORTLY AFTER ANNOUNCING A SPATE OF PROPOSALS TARGETING ILLEGAL IMMIGRANTS IN AN APPARENT RESPONSE TO THESE CONCERNS THE CLINTON ADMINISTRATION HAS ASKED FOR A 22 BUDGET INCREASE FOR THE IMMIGRATION AND NATURALIZATION SERVICE ALTHOUGH MOST OF THE 368 MILLION IN NEW FUNDS WOULD GO TOWARD BEEFING UP THE BORDER PATROL REFORMING ASYLUM PROCEDURES AND CRACKING DOWN ON BUSINESSES THAT HIRE UNDOCUMENTED WORKERS A BIG CHUNK 55 MILLION WOULD FOCUS ON IDENTIFYING AND DEPORTING CRIMINAL ALIENS THAT'S OK BUT IT DOES ADD TO THE NOTION THAT IMMIGRANTS ARE MORE LIKELY TO BE CRIMINALS THAN NATIVEBORN AMERICANS BY BUNDLING DOLLARS DEVOTED TO CRIMINAL ALIENS WITHIN A BROADER INS PACKAGE THE ADMINISTRATION THROUGH NO FAULT OF ITS OWN MAKES A CRIMINAL JUSTICE PROBLEM LOOK LIKE AN IMMIGRATION PROBLEM RESTRICTIONISTS TRY TO BLUR DISTINCTIONS FURTHER THE FEDERATION FOR AMERICAN IMMIGRATION REFORM WHICH SEEKS TO IMPOSE A MORATORIUM ON MOST ADMISSIONS HAS ALREADY SENT OUT THOUSANDS OF FUNDRAISING LETTERS EXPLICITLY LINKING IMMIGRANTS TO TERRORISM ASSASSINATION AND SMUGGLING UPON FIRST GLANCE THE US DOES APPEAR TO HAVE A CRIMINAL IMMIGRANT CRISIS ON ITS HANDS ALIENS AFTER ALL MAKE UP MORE THAN 25 OF ALL PRISONERS IN THE FEDERAL PENITENTIARY SYSTEM ONE PROBLEM THE FEDS AREN'T ARRESTING IMMIGRANTS THEY'RE NABBING DRUG RUNNERS WHOSE BUSINESS OCCASIONALLY TAKES THEM INTO THE US IN FACT ALMOST 80 OF ALL ALIENS IN FEDERAL PRISONS WERE CONVICTED ON DRUG CHARGES MANY OF THEM WERE MULES LOWLEVEL OPERATIVES WHO SMUGGLED DRUGS ACROSS THE BORDER OTHERS WERE HIGHPROFILE DEAL MAKERS SUCH AS MANUEL NORIEGA ALL OF THEM ARE INTERNATIONAL CRIMINALS NOT IMMIGRANTS THERE IS LITTLE CORRELATION BETWEEN THE IMMIGRANTS IN PRISON AND THOSE IN THE POPULATION AT LARGE MEXICANS COLOMBIANS CUBANS DOMINICANS AND JAMAICANS ARE THE FIVE LARGEST FOREIGNBORN GROUPS IN THE FEDERAL PRISON SYSTEM ACCORDING TO THE BUREAU OF PRISONS BY CONTRAST THE FIVE LARGEST IMMIGRANT GROUPS OVER THE PAST 12 YEARS HAVE BEEN MEXICANS FILIPINOS VIETNAMESE CHINESE AND KOREANS MEXICANS ARE FAR AND AWAY THE LARGEST IMMIGRANT GROUP AND SO IT'S ONLY NATURAL THAT THEY'D SHOW UP ON BOTH LISTS COLOMBIANS HOWEVER DON'T EVEN RANK AMONG THE TOP 15 IMMIGRANT GROUPS MOST OF THESE FEDERAL PRISONERS NEVER INTENDED TO SETTLE DOWN FIND JOBS OR RAISE FAMILIES AS MOST IMMIGRANTS DO THEY SIMPLY WANTED TO EXPLOIT OUR SOCIETY'S OPENNESS IN ORDER TO MAKE A QUICK BUCK ON THE BLACK MARKET THE SIMPLEMINDED CALCULATION OF IMMIGRANT EQUALS CRIMINAL SIMPLY DOESN'T COMPUTE OF THE FIVE STATES MOST HEAVILY BURDENED BY ALIEN PRISONERS IN 1992 CALIFORNIA NEW YORK FLORIDA ILLINOIS AND TEXAS ONLY NEW YORK HAD A GREATER SHARE OF NONCITIZENS IN ITS PRISONS 124 THAN IN THE GENERAL POPULATION ALMOST 9 IN CALIFORNIA WHICH HOUSED A 104 ALIENPRISONER POPULATION AT LEAST 15 OF STATE RESIDENTS ARE NONCITIZENS FACTS OF COURSE PROBABLY WON'T GET IN THE WAY OF THE IMMIGRANTBASHING BANDWAGON POLITICIANS IN SEARCH OF VOTES WILL BRING THE CRIME AND IMMIGRATION ISSUES UNDER ONE BANNER THE CRUSADE MIGHT BEGIN IN TRENDSETTING CALIFORNIA WHICH WILL ELECT A GOVERNOR AND A SENATOR IN NOVEMBER IT COULD THEN SPREAD TO OTHER STATES WITH LARGE IMMIGRANT POPULATIONS LIKE FLORIDA AND NEW YORK WHICH ALSO HAVE GUBERNATORIAL AND SENATE RACES THIS YEAR IN THE WORST SCENARIO CONGRESS COULD EVENTUALLY TAKE SOME PUNITIVE ACTION AGAINST IMMIGRANTS DURING ITS DEBATES ON HEALTH CARE WELFARE AND CRIME IF THE ANTIIMMIGRANT FORCES WANT TO SCORE CHEAP POLITICAL POINTS RECENT EVENTS CERTAINLY GIVE THEM AMPLE OPPORTUNITY BUT THEY WOULD DO BETTER TO LISTEN TO NEW YORK CITY MAYOR RUDOLPH GIULIANI'S MESSAGE DELIVERED SHORTLY AFTER POLICE ARRESTED RASHAD BAZ IN CONNECTION WITH THE BROOKLYN BRIDGE SHOOTING THERE HAS BEEN AN ILLOGICAL AND DESTRUCTIVE TENDENCY TO CHARACTERIZE A COMMUNITY BY THE WORST PEOPLE IN THAT COMMUNITY THIS ACT OF EVIL IS NOT THE ACT OF A PEOPLE BUT IT'S THE ACT OF A PERSON OR PERSONS WHAT A SHAME IF WE DON'T HEED THESE WORDS AND INSTEAD LET A FEW MISCREANTS INSPIRE US TO REJECT THE GOOD WORKING PEOPLE OF MANY LANDS SEEKING TO IMPROVE THEIR LIVES IN AMERICA MR MILLER IS ASSOCIATE DIRECTOR OF THE MANHATTAN INSTITUTE'S CENTER FOR THE NEW AMERICAN COMMUNITY IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR MASSAGING THE STATS ON IMMIGRANT CRIME WSJ MARCH 28 1994 9403080089 YY94 MM03 9403280118 940328 POLITICAL CRISES ARE TAKING TOLL ON EQUITIES AND DEBT CREDIT MARKETS BOND ANALYSTS SEE FEW EVENTS HAVING LONGTERM EFFECTS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR SHELLSHOCKED BOND INVESTORS THINKING ABOUT STASHING THEIR MONEY UNDER THE MATTRESS AFTER LAST WEEK'S MARKET TURMOIL THERE IS SOME GOOD NEWS ANALYSTS SAY THAT MANY OF THE POLITICAL CRISES THAT ROILED THE WORLD'S MARKETS LAST WEEK ARE UNLIKELY TO HAVE A SIGNIFICANT LONGTERM EFFECT ON US BOND MARKETS CERTAINLY THERE APPEARS TO BE MUCH TO WORRY ABOUT CALAMITIES TENSIONS AND CONFRONTATIONS INVOLVING KOREA CHINA RUSSIA AND MEXICO HAVE TERRIFIED INVESTORS WHO HOLD THE DEBT OF THOSE NATIONS AND MANY OF THEIR NEIGHBORS HERE AT HOME THE WHITEWATER CONTROVERSY AND FEARS ABOUT INFLATION ALSO HAVE SPARKED SELLING IN BONDS IF THAT WEREN'T ENOUGH THE FEDERAL RESERVE DECIDED TUESDAY TO RAISE SHORTTERM INTEREST RATES ALL TOGETHER THESE ISSUES DROVE THE YIELD OF THE 30YEAR TREASURY BOND ABOVE 7 FOR THE FIRST TIME SINCE MAY LAST YEAR TO END AT 701 WHAT'S HAPPENED IN THE LAST WEEK IS A CONVERGENCE OF BAD ECONOMIC NEWS AND WORSE POLITICAL NEWS SAYS ROBERT D HORMATS VICE CHAIRMAN OF GOLDMAN SACHS INTERNATIONAL THE BAD ECONOMIC NEWS IS THAT INTEREST RATES HAVE TURNED AROUND IN THE US THE WORSE POLITICAL NEWS IS THAT YOU HAVE AN ASSASSINATION IN MEXICO DETERIORIATION IN RUSSIA A THREATENING SITUATION ON THE KOREAN PENINSULA TRADE FRICTIONS WITH JAPAN AND HUMAN RIGHTS FRICTIONS WITH CHINA THIS COMBINATION IS VERY HARMFUL FOR MARKETS AND CREATES A HUGE AMOUNT OF UNCERTAINTY HE SAYS INVESTORS ARE MORE CAUTIOUS NOW THAN AT ANY POINT IN MY RECENT MEMORY SAYS MR HORMATS AS AMERICANS HAVE MOVED MORE AND MORE INTO FOREIGN BONDS THIS BARRAGE OF INTERNATIONAL BAD NEWS HAS A LARGER AND LARGER EFFECT ON THEIR PORTFOLIOS HE POINTS OUT THAT TEN YEARS AGO CHINAUS TENSIONS FOR INSTANCE WOULDN'T HAVE HAD MUCH OF AN EFFECT ON PORTFOLIOS BECAUSE FEW AMERICANS OWNED CHINESE BONDS THE SAME IS TRUE FOR ARGENTINA AND MEXICO REMEMBER CHINA'S MUCHPROMOTED 1 BILLION ISSUE OF 10YEAR GLOBAL NOTES LAST MONTH INVESTORS WHO CLIMBED OVER EACH OTHER TO BUY THOSE BONDS FROM UNDERWRITER MERRILL LYNCH & CO ARE NOW SCRAMBLING TO SELL THEM THIS MONTH THANKS TO CONCERNS OVER CHINA'S MOST FAVORED NATION TRADE STATUS WITH THE US ACCORDING TO GEOFFREY L KURINSKY A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL SERVICES THE PRICE OF THOSE NOTES HAS DROPPED MORE THAN NINE POINTS OR MORE THAN 90 FOR A NOTE WITH 1000 FACE VALUE TO 90 1/2 THE YIELD IS NOW 790 FOR A SPREAD OVER TREASURY 10YEAR NOTES OF 135 PERCENTAGE POINTS COMPARED WITH 085 PERCENTAGE POINT WHEN THE BONDS WERE SOLD PEOPLE GET INTO THESE EMERGING MARKETS AND GET CAUGHT UP IN THE EXCITEMENT AND DON'T REALLY KNOW WHAT THEY'RE DOING SAYS MR KURINSKY PEOPLE GOT CAUGHT UP IN THE EUPHORIA THINKING CHINA WAS A WESTERN DEMOCRACY HE ADDS BUT MR KURINSKY THINKS MUCH OF THE POLITICAL WORRIES WILL EVAPORATE IN COMING MONTHS THREE OR FOUR MONTHS FROM NOW THIS STUFF WILL HAVE WORKED ITS WAY THROUGH HE SAYS MANY FUND MANAGERS BELIEVE MEXICO WILL RECOVER FROM THE SHOCK OF THE ASSASSINATION OF ITS LEADING PRESIDENTIAL CANDIDATE AND CONTINUE ON THE PATH OF ECONOMIC REFORM THEY ALSO THINK THAT THE US AND CHINA COULD EVENTUALLY MEND FENCES THE WHITEWATER AFFAIR HAS BEEN USED AS AN EXCUSE TO SELL BONDS BY INVESTORS CAUGHT FLATFOOTED BY RISING SHORTTERM INTEREST RATES BUT SO FAR IT HASN'T TURNED INTO A CRISIS CAPABLE OF CAUSING SERIOUS DAMAGE TO THE BOND MARKETS ON ITS OWN THOUGH IT COULD IF INVESTORS BELIEVE PRESIDENT CLINTON IS NEGLECTING HIS ECONOMIC PROGRAM AS A RESULT BUT FUND MANAGERS ARE KEEPING A CLOSE EYE ON KOREA AND RUSSIA THEY FEAR THAT A KOREAN CONFLICT COULD OCCUR WITH ASIAN NATIONS TAKING SIDES AND THEY SEE INSTABILITY IN RUSSIA AS HAVING A VERY NEGATIVE EFFECT ON ALL OF THE FINANCIAL MARKETS OF EUROPE WHILE MANY INVESTORS ARE INDEED WORRIED ABOUT RISING RATES AND A STRONGER US ECONOMY GOLDMAN SACHS'S MR HORMATS REMAINS UNCONCERNED ABOUT THE FUNDAMENTALS OF THE US MARKET THE INFLATION OUTLOOK IN THE US AND THROUGHOUT THE WORLD IS VERY BENIGN HE SAYS GLOBAL COMPETITIVE PRESSURES AND MASSIVE AMOUNTS OF UNDERUSED PRODUCTION CAPACITY AND RELATIVELY MODEST INCREASES IN COMMODITIES PRICES WILL PRODUCE VERY LOW RATES OF INFLATION ON FRIDAY CHIEF WHITE HOUSE ECONOMIST LAURA TYSON ARGUED THAT RECENT INFLATION FEARS WERE OVERBLOWN WE HAVE LOOKED AT WHAT WE BELIEVE TO BE THE FUNDAMENTAL DETERMINANTS OF INFLATION WAGES PRODUCTIVITY IMPORT PRICES AND ENERGY PRICES SHE SAID IN A SPEECH AND WHEN WE LOOK AT ALL THESE WE THINK THAT THE INFLATION FUNDAMENTALS PICTURE CONTINUES TO LOOK GOOD AND THAT THE RECENT CONCERNS ABOUT INFLATION LOOK TO BE A LITTLE EXAGGERATED MR HORMATS THINKS THAT THE BEST OPPORTUNITIES FOR BOND INVESTORS THESE DAYS ARE THE BONDS OF NATIONS WITH SLACK ECONOMIES SUCH AS MANY EUROPEAN NATIONS INCLUDING ITALY SPAIN FRANCE AND THE NETHERLANDS THERE IS NO RATIONAL REASON WHY EUROPEAN BONDS SHOULD HAVE WEAKENED AFTER THE FED RAISED INTEREST RATES HE SAYS INFLATION IN THOSE COUNTRIES IS VERY SLOW AND INTEREST RATES ARE STILL GOING DOWN PART OF THE REASON FOR THE SLOWDOWN IN THE BOND MARKETS IS THAT YOU DON'T KNOW WHERE THE BAD NEWS IS COMING FROM NEXT SAYS MR HORMATS IF RUSSIA REALLY DETERIORATES THAT'S BAD FOR GERMAN BONDS AND BAD FOR THE MARK YOU LOSE ON THE CURRENCY AND ON THE BOND BUT HE ADDS THAT IF YOU'RE CAUTIOUS BUT WANT TO GET A DECENT REAL RETURN ON YOUR MONEY THE THREEYEAR TO FIVEYEAR US TREASURY NOTES ARE PROBABLY THE BEST BET THESE WOULD BE GOOD IF YOU'RE NOT SURE ABOUT INFLATION OR THE POLITICAL OUTLOOK AND YOU WANT TO GET A GOOD NIGHT'S SLEEP HE SAYS OTHERS ARE LESS SANGUINE ABOUT THE FUNDAMENTALS BUT NEVERTHELESS SEE OPPORTUNITY FOR BOND INVESTORS IN ALL THE POLITICAL TURMOIL WE'VE HAD A LIQUIDITYDRIVEN MARKET WHICH HAS UNTIL NOW ENABLED MARKETS TO IGNORE POLITICAL EVENTS SAYS JOHN DIVER AN ADVISER TO EICHLER MAGNIN INC AN INVESTMENT FIRM IN LOS ANGELES BUT ONCE YOU REMOVE THE LIQUIDITY WHICH THE FED HAS DONE BY RAISING INTEREST RATES THEN YOU HAVE TO LOOK MORE AT THE POLITICS IF THINGS BLOW UP OVERSEAS SAYS MR DIVER THEN QUITE OFTEN THE DOLLAR WILL ACT AS A STORE OF VALUE FOR A FLIGHT TO QUALITY AND PEOPLE MAY THEN RUSH IN AND BUY US BONDS THE BOND MARKET'S SELLOFF CONTINUED INTO ITS THIRD CONSECUTIVE SESSION FRIDAY TAKING THE YIELD ON THE TREASURY'S 30YEAR BOND ABOVE 7 FOR THE FIRST TIME IN 10 MONTHS NO SPECIFIC NEWS WAS RESPONSIBLE FOR THE DECLINES MUCH OF WHICH TOOK PLACE LATE IN THE SESSION AS VOLUME THINNED AHEAD OF THE WEEKEND INSTEAD TRADERS BLAMED THE DROP ON UNDERLYING BEARISHNESS AND A RELUCTANCE AMONG INVESTORS TO STEP IN AND TAKE ADVANTAGE OF THE HIGHER YIELDS THE 10YEAR NOTE DROPPED MORE THAN 1/2 POINT TO 94 14/32 AS ITS YIELD ROSE TO 663 FROM 655 ON THURSDAY MORE TROUBLE FOR THE MARKET MAY BE LOOMING ANALYSTS SAID SO FAR THIS YEAR MUCH OF THE ECONOMIC DATA HAVE BEEN ON THE WEAK SIDE BECAUSE OF THE IMPACT OF THE UNSEASONABLY HARSH WINTER WEATHER NOW THAT SPRING IS HERE TEMPERATURES ARE RISING AND ECONOMIC ACTIVITY IS LIKELY TO SNAP BACK THE FIRST OFFICIAL GLIMPSE OF HOW THE ECONOMY FARED IN MARCH WILL COME THIS FRIDAY WHEN THE GOVERNMENT RELEASES ITS LATEST FIGURES ON THE LABOR MARKET ECONOMISTS ARE CALLING FOR A SOLID GAIN OF ABOUT 250000 IN NONFARM PAYROLLS FOR MARCH THE CASH BOND MARKET WILL BE CLOSED FRIDAY IN OBSERVANCE OF THE GOOD FRIDAY HOLIDAY FINANCIAL FUTURES MARKETS WILL BE OPEN FOR AN ABBREVIATED SESSION SEE RELATED ARTICLE ABREAST OF THE MARKET INVESTORS ARE TOLD TO BE SELECTIVE IN EVALUATING WOES WSJ MARCH 28 1994 9403280117 940328 TOYODA MACHINE SEES FISCAL '94 PRETAX LOSS TOTALING 335 MILLION SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S TOYODA MACHINE WORKS LTD A MACHINE TOOLS AND AUTOPARTS MAKER AFFILIATED WITH TOYOTA MOTOR CORP SAID FRIDAY ITS PRETAX LOSS FOR THE YEAR ENDING MARCH 31 WILL BE AROUND 35 BILLION YEN 335 MILLION SMALLER THAN AN EARLIER FORECAST OF 5 BILLION YEN THE COMPANY SAID ITS EFFORTS TO LOWER THE PURCHASE PRICES OF PRODUCTION MATERIALS HELPED NARROW THIS YEAR'S LOSS A YEAR EARLIER TOYODA HAD PRETAX PROFIT OF 256 BILLION YEN ON SALES OF 16185 BILLION YEN THE COMPANY EXPECTS SALES OF 13250 BILLION YEN IN THE CURRENT FISCAL YEAR AT THE SAME TIME TOYODA MACHINE WORKS ANNOUNCED THAT IT DECIDED TO LIQUIDATE A SUBSIDIARY IN FRANCE SET UP IN 1985 TO MANUFACTURE LATHES AND MACHINING CENTERS A KIND OF INDUSTRIAL MACHINERY USED WIDELY BY STEEL MAKERS PRODUCTION AT THE CHOLET PLANT ABOUT 300 KILOMETERS SOUTHEAST OF PARIS HAS BEEN SUSPENDED SINCE SEPTEMBER 1992 AMID THE RECESSION IN EUROPE HAVING TRANSFERRED PART OF ITS PRODUCTION CAPACITY TO A FRENCH CONCERN THE COMPANY WILL SHIFT ITS MARKETING AND SERVICE OPERATIONS TO TOYODA MACHINERY & ENGINEERING EUROPE A NEWLY ESTABLISHED MARKETING SUBSIDIARY THE LIQUIDATION OF THE FRENCH SUBSIDIARY WILL RESULT IN A ONETIME LOSS OF 14 BILLION YEN FOR TOYODA MACHINE WORKS BUT IT PLANS A ROUGHLY EQUIVALENT ONETIME GAIN BY SELLING ITS SHAREHOLDINGS AND FROM FINANCIAL RESERVES THE COMPANY SAID 9403280116 940328 TREASURY PLANS TO SELL 52WEEK DEBT ISSUE TOTALING 165 BILLION WASHINGTON THE TREASURY SAID IT PLANS TO SELL 165 BILLION IN 52WEEK BILLS THURSDAY TO RAISE 215 BILLION IN FRESH CASH AND REDEEM 1434 BILLION IN MATURING BILLS THE SALE AMOUNT IS UNCHANGED FROM THE PREVIOUS 52WEEK BILL SALE FEB 25 THE TREASURY WILL ALSO SELL 14 BILLION IN 21DAY CASHMANAGEMENT BILLS TOMORROW RAISING ALL NEW CASH THE 52WEEK BILLS WILL BE DATED APRIL 7 AND WILL MATURE APRIL 6 1995 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EST THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS ARE DUE BY 1 PM EST THE BILLS ARE AVAILABLE IN MINIMUM DENOMINATIONS OF 10000 THE CUSIP NUMBER IS 912794R48 9403280115 940328 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 3/4 HIGH 3 7/16 LOW 3 5/8 NEAR CLOSING BID 3 3/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 1/4 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 360 30 TO 59 DAYS 367 60 TO 89 DAYS 377 90 TO 119 DAYS 385 120 TO 149 DAYS 397 150 TO 179 DAYS 4 180 TO 239 DAYS 412 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 367 30 DAYS 377 60 DAYS 387 90 DAYS CERTIFICATES OF DEPOSIT 298 ONE MONTH 305 TWO MONTHS 328 THREE MONTHS 353 SIX MONTHS 389 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 362 ONE MONTH 377 THREE MONTHS 405 SIX MONTHS BANKERS ACCEPTANCES 357 30 DAYS 362 60 DAYS 373 90 DAYS 385 120 DAYS 395 150 DAYS 399 180 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 3/4 3 5/8 TWO MONTHS 3 7/8 3 3/4 THREE MONTHS 4 3 7/8 FOUR MONTHS 4 1/8 4 FIVE MONTHS 4 3/16 4 1/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 11/16 ONE MONTH 3 7/8 THREE MONTHS 4 3/16 SIX MONTHS 4 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 580 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 21 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 361 13 WEEKS 390 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 786 60 DAYS 792 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 786 60 DAYS 793 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 585 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 283 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403280113 940328 BAN ON SMOKING EXPECTED TO BRING PRODUCTIVITY GAIN BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HOPES ITS NEW PROPOSAL TO BAN SMOKING AT WORK WILL HELP FIRE UP THE ECONOMY THE WHITE HOUSE PLAN ON INDOORAIR QUALITY ESTIMATES THAT US BUSINESSES WILL REAP AN 84 BILLION ANNUAL WINDFALL FROM INCREASED PRODUCTIVITY BUT SOME OF THE FIGURES CAME FROM A GROUP THAT WOULD PROBABLY GAIN FROM THE PROPOSAL THE GOVERNMENT ESTIMATES THAT 83 OF WORKERHEALTH COMPLAINTS RELATED TO PROBLEMS WITH INDOORAIR QUALITY WOULD BE ELIMINATED IF THE PROPOSAL WERE TO BECOME LAW THE CHANGES WOULD PREVENT THREE MILLION SEVERE HEADACHES AND 45 MILLION UPPERRESPIRATORY SYMPTOMS OVER THE NEXT 45 YEARS AS MANY AS 32502 CANCER DEATHS AND 577818 HEARTDISEASE DEATHS COULD BE AVOIDED IN THAT SAME PERIOD THE ADMINISTRATION PROJECTS THE ADMINISTRATION ESTIMATES THAT THE RULES WOULD COST BUSINESSES 66 BILLION A YEAR MUCH OF THAT COMING FROM IMPROVEMENTS AND MAINTENANCE OF AIRCONDITIONING AND HEATING SYSTEMS AS WELL AS TRAINING FOR AN EMPLOYEE DESIGNATED TO MONITOR COMPANY SYSTEMS IN THE FIRST YEAR THE PLAN WOULD COST CORPORATIONS AN ADDITIONAL 15 BILLION TO SET UP SEPARATE ROOMS AND VENT THEM TO THE OUTSIDE IF EMPLOYERS CHOOSE TO DO THAT WHILE THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION LARGELY REGULATES THE SAFETY OF WORKPLACES WITH 10 OR MORE EMPLOYEES AGENCY OFFICIALS CONTEND THAT THE RULE WOULD APPLY TO ALL WORKPLACES INCLUDING SMALLER LOCATIONS A 1989 STUDY BY THE ENERGY DEPARTMENT SAYS THAT 46 OF BUILDINGS HAVE REGULAR MAINTENANCE DONE ON THEIR VENTILATION SYSTEMS LEAVING ABOUT 23 MILLION BUILDINGS NEEDING TO STEP UP MAINTENANCE WHICH OSHA ESTIMATES WOULD COST ABOUT 2000 A YEAR FOR EACH BUILDING THE BENEFITS SIDE IS TOUGHER TO CALCULATE THE ADMINISTRATION USED FIGURES GENERATED BY THE NATIONAL ENERGY MANAGEMENT INSTITUTE A PRIVATE OPERATION OF THE SHEETMETAL INDUSTRY AND THE SHEETMETAL WORKERS' UNION THE GROUP'S MEMBERS STAND TO GAIN FROM ANY BROAD RETROFITTING OF HEATING AND AIRCONDITIONING SYSTEMS ALEXANDER WILLMAN DIRECTOR OF ENGINEERING AT THE TRADE GROUP CALLS THE ADMINISTRATION'S PLAN VERY PROGRESSIVE FIVE YEARS AGO THE GROUP STUDIED 13 TYPES OF NONINDUSTRIAL BUILDINGS CLASSIFYING THEM BY HOW SICK THEY WERE THE STUDY WAS CONDUCTED BEFORE MANY SMOKING BANS HAD BEEN INSTITUTED TAKING SMOKERS AWAY FROM THEIR WORK AND INTO THE STREET FOR THEIR HABIT FOR THE 10 OF BUILDINGS THAT HAD THE WORST AIR QUALITY THE GROUP ESTIMATED THAT WORKER PRODUCTIVITY COULD BE LIFTED 6 AS A RESULT OF FEWER ILLNESSES INCLUDING HEADACHES ANOTHER 30 OF THE BUILDINGS POSED SOME HEALTHRELATED PROBLEMS AND HAD THE POTENTIAL TO RAISE PRODUCTIVITY 35 OVERALL AVERAGE PRODUCTIVITY GAIN WOULD BE 35 OR ABOUT 30 MINUTES OF PRODUCTION TIME FOR A FULLTIME WORKER EACH DAY TO BE CONSERVATIVE THE ADMINISTRATION REDUCED THAT ESTIMATE TO 3 AND THEN MULTIPLIED BY PAYROLL COSTS AS A RESULT THE ADMINISTRATION DETERMINED THAT THE PROPOSAL WOULD SAVE COMPANIES 15 BILLION A YEAR OR ROUGHLY 84 BILLION MORE THAN THEY WOULD SPEND ON THE CHANGES THE PROPOSAL EXCLUDED ANY REDUCTION IN COMPANY HEALTHCARE OR WORKERSCOMPENSATION COSTS 9403280112 940328 BUSINESS BRIEF STATE FARM RAISES ESTIMATE OF LOSSES DUE TO EARTHQUAKE BLOOMINGTON ILL STATE FARM FIRE & CASUALTY CO REVISED ITS LOSSES FROM THE LOS ANGELES EARTHQUAKE TO 1 BILLION INSTEAD OF 600 MILLION BECOMING THE LATEST INSURER TO RAISE DAMAGE ESTIMATES THE INSURER A UNIT OF STATE FARM MUTUAL AUTOMOBILE INSURANCE CO SAID THE 67 INCREASE STEMS FROM HIGHER THAN ANTICIPATED LEVELS OF STRUCTURAL DAMAGE IN 103000 ESTIMATED CLAIMS THE HIGHER ESTIMATE FOLLOWS AN ANNOUNCEMENT LAST WEEK THAT QUAKE LOSSES FOR ALLSTATE CORP WOULD BE 71 HIGHER THAN ORIGINALLY ESTIMATED OR 600 MILLION EARLIER 20TH CENTURY INDUSTRIES OF WOODLAND HILLS CALIF DOUBLED ITS ESTIMATE TO 325 MILLION BASED ON THE UPWARD REVISIONS INDUSTRY EXPERTS BELIEVE INSURERS' LOSSES FROM THE JAN 17 QUAKE COULD TOP 4 BILLION RIVALING THE 42 BILLION OF CLAIMS PAID FOR HURRICANE HUGO IN 1989 A SPOKESMAN FOR FARMERS INSURANCE GROUP OF COMPANIES SAYS IT IS STICKING WITH ITS ORIGINAL FEB 16 ESTIMATE OF 600 MILLION IN LOSSES BASED ON 27000 CLAIMS 9403280111 940328 INTERNATIONAL HOLDERS APPROVE PLAN TO BAIL OUT BANESTO OF SPAIN BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID AT A STORMY NINEHOUR MEETING SHAREHOLDERS APPROVED A PLAN TO BAIL OUT BANCO ESPANOL DE CREDITO THE BIG COMMERCIAL BANK SEIZED BY REGULATORS IN DECEMBER SHAREHOLDERS ALSO VOTED TO BRING A CIVIL LIABILITY SUIT AGAINST BANESTO'S FORMER CHAIRMAN AND DIRECTORS FOR THE FINANCIAL DAMAGE ALLEGEDLY CAUSED BY THEIR MANAGEMENT THE BANK'S CARETAKER CHAIRMAN ALFREDO SAENZ SAID THE RESCUE PLAN WOULD PAVE THE WAY FOR BANESTO TO RETURN TO PROFITABILITY WITHIN A YEAR AND TO BEGIN PAYING A DIVIDEND POSSIBLY IN 1997 AFTER SHOWING ESTIMATED LOSSES OF 605 BILLION PESETAS 441 BILLION FOR 1993 BANESTO SHOULD BREAK EVEN THIS YEAR HE TOLD SHAREHOLDERS SATURDAY ALTHOUGH THE RESTRUCTURING PLAN WAS CLEARED WITH MORE THAN 70 OF THE VOTES MANY SMALL SHAREHOLDERS CHALLENGED A MOTION TO WRITE DOWN BANESTO'S CAPITAL BECAUSE THE MOVE WOULD REDUCE THE NOMINAL VALUE OF EACH SHARE TO 400 PESETAS FROM 700 PESETAS BUT NO DISSENTING GROUP HAD ENOUGH VOTES TO BLOCK THE MOTION AMONG THE SHAREHOLDERS WHO APPROVED THE PLAN WAS CORSAIR PARTNERSHIP A 1 BILLION INVESTMENT FUND LED BY JP MORGAN CO OF THE US CORSAIR BANESTO'S LARGEST SINGLE SHAREHOLDER WITH A 79 STAKE HOWEVER REPORTEDLY VOTED AGAINST THE MOTION TO TAKE LEGAL ACTION AGAINST THE FORMER BOARD MORGAN'S VICE CHAIRMAN ROBERTO MENDOZA WAS A MEMBER OF THAT BOARD BANESTO HAD LOSSES OF ABOUT 50 BILLION PESETAS A YEAR UNDER MARIO CONDE THE BANK'S CHAIRMAN FROM LATE 1987 UNTIL HIS REMOVAL BY THE BANK OF SPAIN IN DECEMBER MR SAENZ SAID BECAUSE THE BANK REPORTED A PROFIT DURING EACH YEAR OF MR CONDE'S TENURE THE ESTIMATED LOSS FOR 1993 INCLUDES UNRECOGNIZED LOSSES AND FINANCING NEEDS FROM PREVIOUS YEARS HE ALSO ACKNOWLEDGED THAT THE BANK HAS LOST 375 BILLION PESETAS OF DEPOSITS SINCE ITS TAKEOVER AND IS 800 BILLION PESETAS IN DEBT ON THE INTERBANK MARKET TO MEET ITS 605 BILLION PESETAS FINANCIAL DEFICIT WHICH GIVES IT A NEGATIVE NET WORTH OF 247 BILLION PESETAS BANESTO WILL WRITE OFF RESERVES OF 244 BILLION PESETAS AND WRITE DOWN CAPITAL BY 488 BILLION PESETAS TO 65 BILLION PESETAS AT THE SAME TIME THE BANK WILL DEFER 27 BILLION PESETAS WORTH OF PROVISIONS FOR PENSION FUNDS BRINGING ITS TOTAL CONTRIBUTION TO THE RESCUE PLAN TO 320 BILLION PESETAS UNDER THE BAILOUT PROGRAM SPAIN'S DEPOSITGUARANTEE FUND WILL PROVIDE THE BANK'S ADDITIONAL FUNDING NEEDS BY ACQUIRING DAMAGED ASSETS FROM BANESTO FOR THEIR NOMINAL VALUE OF 600 BILLION PESETAS TO RESTORE BANESTO'S CAPITAL THE DEPOSITGUARANTEE FUND WILL SUBSCRIBE TO A 180 BILLION PESETAS CAPITAL INCREASE GIVING IT A 73 STAKE IN THE BANK THAT SHAREHOLDING WILL BE AUCTIONED OFF IN APRIL TO THE HIGHESTBIDDING BANK OR GROUP OF BANKS 9403280110 940328 FED WAS DIVIDED ON RATERISE SIZE VOTED IN FEBRUARY BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN FEDERAL RESERVE POLICY MAKERS UNANIMOUSLY DECIDED TO RAISE SHORTTERM INTEREST RATES IN EARLY FEBRUARY THEY WERE SPLIT BETWEEN THOSE WHO WANTED A SLIGHT INCREASE AND THOSE WHO WANTED A SOMEWHAT GREATER INCREASE THE FED DISCLOSED EACH CAMP ARGUED THAT THE BOND MARKET WHERE LONGTERM INTEREST RATES ARE DETERMINED WOULD RESPOND MORE FAVORABLY TO ITS PREFERRED OPTION ACCORDING TO A SUMMARY OF THE FEB 4 MEETING RELEASED FRIDAY IN THE END THE FED OPTED FOR THE SLIGHT INCREASE VOTING TO RAISE A KEY SHORTTERM INTEREST RATE BY ONLY 1/4 PERCENTAGE POINT THE FIRST UPWARD MOVE IN RATES IN FIVE YEARS THE BOND MARKET PUSHED UP LONGTERM RATES A BIT FOLLOWING THE FED ACTION BUT THE MAJOR INCREASE IN LONGTERM RATES DIDN'T COME UNTIL MORE THAN A WEEK LATER THE FED DIDN'T DISCLOSE WHICH MEMBERS OF ITS POLICY COMMITTEE WERE IN WHICH CAMP BUT FED CHAIRMAN ALAN GREENSPAN IS SAID TO HAVE BEEN AMONG THOSE WHO ARGUED FOR A 1/4POINT INCREASE HIS ALLIES SAID THAT EVEN A SLIGHT MOVE WAS LIKELY TO HAVE A PARTICULARLY STRONG IMPACT ON FINANCIAL MARKETS BECAUSE IT WAS THE FIRST POLICY CHANGE AFTER A LONG HIATUS AND THAT THE IMPACT WAS LIKELY TO BE MAGNIFIED BY THE COMMITTEE'S DECISION TO ALTER LONGSTANDING POLICY AND PUBLICLY ANNOUNCE THE RATE INCREASE A RELATIVELY SMALL MOVE WOULD READILY ACCOMPLISH THE PURPOSES OF SIGNALING THE COMMITTEE'S ANTIINFLATION RESOLVE AND TOGETHER WITH EXPECTED FURTHER ACTION SHOULD HELP TO TEMPER OR AVERT AN INCREASE IN INFLATION EXPECTATIONS AND SPECULATIVE DEVELOPMENTS IN FINANCIAL MARKETS THIS SIDE ARGUED THE OTHER SIDE MADE TWO ARGUMENTS THESE OFFICIALS SAID THAT SLOW GRADUAL TIGHTENING MOVES RISKED ALLOWING INFLATION PRESSURES TO BUILD THEY ALSO ARGUED THAT A MORE DECISIVE MOVE WOULD IN FACT REDUCE UNCERTAINTY IN FINANCIAL MARKETS BECAUSE IT WOULD SUGGEST THE FED WAS LIKELY TO KEEP ITS HANDS OFF THE INTERESTRATE LEVER FOR A WHILE THE POLICY COMMITTEE MET AGAIN TUESDAY AND VOTED TO RAISE SHORTTERM RATES BY ANOTHER 1/4 PERCENTAGE POINT BRINGING THE KEY FEDERAL FUNDS RATE AT WHICH BANKS LEND TO EACH OTHER TO 35 THE FED HASN'T SAID WHETHER ALL THE MEMBERS OF THE COMMITTEE FAVORED THAT MOVE THE COMMITTEE MET AGAIN BY TELEPHONE FRIDAY AFTERNOON TO APPROVE A TREASURYFED PLAN TO LEND MEXICO UP TO 6 BILLION TO SUPPORT THE PESO A FED SPOKESMAN SAID 9403280109 940328 WHO'S NEWS CRANE CO CRANE CO STAMFORD CONN DAVID S SMITH 37 YEARS OLD WAS NAMED VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER SUCCEEDING JEREMIAH P CRONIN WHO RESIGNED FOR PERSONAL REASONS MR SMITH HAD BEEN VICE PRESIDENT CORPORATE DEVELOPMENT 9403280108 940328 TECHNOLOGY & HEALTH ATARI LOSS WIDENED DURING 4TH PERIOD AS SALES FELL 67 SUNNYVALE CALIF ATARI CORP REPORTED A WIDER FOURTHQUARTER LOSS ON A 67 DROP IN SALES AND WARNED THAT IT WON'T BE PROFITABLE UNTIL IT CRANKS UP SHIPMENTS OF ITS NEW JAGUAR VIDEO GAME PRODUCT BUT THE GAME MAKER'S STOCK ROSE 875 CENTS TO 7375 IN AMERICAN STOCK EXCHANGE TRADING ON NEWS THAT ATARI GOT A CASH INFUSION FROM TIME WARNER INC WHICH BOUGHT 128 MILLION OF ATARI STOCK BOOSTING ITS STAKE TO 27 FROM 25 SEPARATELY ATARI SAID RIVAL NINTENDO OF AMERICA INC SETTLED A LAWSUIT ALLEGING NINTENDO HAD INFRINGED ON AN ATARI PATENT FOR HORIZONTAL SCROLLING IN VIDEO GAMES TERMS WEREN'T DISCLOSED NINTENDO OF AMERICA IS A UNIT OF NINTENDO CO OF JAPAN ATARI'S LOSS FOR THE QUARTER WAS 226 MILLION OR 39 CENTS A SHARE AFTER A 121 MILLION CHARGE FOR WRITING DOWN INVENTORY AND A 6 MILLION RESTRUCTURING CHARGE IN THE YEAREARLIER QUARTER ATARI HAD A LOSS OF 219 MILLION OR 38 CENTS A SHARE SALES FELL TO 85 MILLION FROM 255 MILLION ANALYSTS SAID THE RESULTS WERE IN LINE WITH EXPECTATIONS GIVEN ATARI'S SWITCH FROM SELLING COMPUTERS IN EUROPE TO SELLING VIDEO GAMES IN THE US THE IMPLOSION ON THE REVENUE LINE WAS NOT UNEXPECTED GRUNTAL & CO ANALYST CHARLES LEMONIDES SAID HE ADDED THAT THE TIME WARNER CASH INFUSION WAS A BIG VOTE OF CONFIDENCE IN A STATEMENT ATARI SAID IT HAS SUBSTANTIALLY COMPLETED ITS TRANSITION TO SELLING VIDEO GAMES THE GAME MAKER'S FUTURE HINGES LARGELY ON THE SUCCESS OF ITS FULLMOTION GRAPHICSINTENSIVE JAGUAR GAMES WHICH ARE NOW SELLING IN SAN FRANCISCO NEW YORK AND LOS ANGELES IN A STATEMENT THE COMPANY SAID THAT BECAUSE OF INCREASED SPENDING TO MARKET THE GAMES WE DO NOT EXPECT TO ACHIEVE PROFITABILITY UNTIL JAGUAR SHIPS IN SUBSTANTIAL VOLUME ATARI AND NINTENDO CONTRADICTED EACH OTHER ABOUT THE OUTLINES OF FRIDAY'S PATENTINFRINGEMENT SETTLEMENT ATARI SAID IN A STATEMENT THAT NINTENDO HAD PAID CASH TO SETTLE AND TO LICENSE ATARI PATENTS BUT NINTENDO SAID IN ITS OWN STATEMENT THAT IT RECEIVED CERTAIN PAYMENTS AND PATENT LICENSES ON A ROYALTYFREE BASIS FROM ATARI AN ATARI SPOKESMAN REPLIED THAT NINTENDO IS FULL OF IT ATARI HAS A SIMILAR SUIT PENDING AGAINST SEGA OF AMERICA INC A UNIT OF JAPAN'S SEGA ENTERPRISES LTD SEPARATELY NINTENDO SAID IT AND ATARI GAMES CORP WHICH IS SEPARATE FROM ATARI CORP SETTLED ALL PATENT LITIGATION BETWEEN THEM CONCERNING ALLEGED PATENT INFRINGEMENT AND ANTITRUST VIOLATIONS NINTENDO DIDN'T ELABORATE ATARI GAMES CORP IS 78OWNED BY TIME WARNER WHICH IS ALSO A MAJOR INVESTOR IN ATARI CORP 9403280107 940328 MORGAN STANLEY TO BUY TOWER IN NEW YORK MIDTOWN SITE WOULD BE JUST AROUND THE CORNER FROM NEW HOME OFFICE BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORGAN STANLEY GROUP INC TENTATIVELY AGREED TO BUY A SECOND SKYSCRAPER NEAR TIMES SQUARE FOR ITS OWN USE MAKING IT ONE OF THE BIGGEST INVESTORS IN MANHATTAN REAL ESTATE IN RECENT YEARS A BANK GROUP LED BY CITICORP AGREED TO SELL THE 34STORY BUILDING THOUGHT TO HAVE COST MORE THAN 150 MILLION TO BUILD FOR ABOUT 90 MILLION ACCORDING TO TWO PEOPLE FAMILIAR WITH THE AGREEMENT THE BUILDING WHICH WAS COMPLETED IN 1990 BUT REMAINS 70 EMPTY IS MIDTOWN MANHATTAN'S LARGEST REMAINING LEGACY TO THE OVERBUILDING OF THE LATE 1980S MORGAN STANLEY'S DECISION COMES JUST SEVEN MONTHS AFTER ITS 176 MILLION PURCHASE OF A 42STORY BUILDING ONE BLOCK AWAY TO USE AS ITS HEADQUARTERS THE CURRENT DEAL TO BUY THE 580000SQUAREFOOT TOWER AT SEVENTH AVENUE AND 49TH STREET IS A FURTHER VOTE OF CONFIDENCE IN MANHATTAN IN 1992 THE COMPANY WAS ON THE VERGE OF MOVING ITS HEADQUARTERS TO STANFORD CONN THE DEAL ALSO IS A TESTAMENT TO THE FIRM'S GROWTH LAST YEAR WHILE ROLLING UP RECORD PROFITS THE FIRM EXPANDED FROM 7400 TO 8400 EMPLOYEES WORLDWIDE THE NEW HEADQUARTERS TO WHICH THE FIRM WON'T MOVE FOR AT LEAST A YEAR IS AT LEAST 200000 SQUARE FEET TOO SMALL TO ACCOMMODATE IT EVEN AT THE FIRM'S CURRENT SIZE BROKERS SAY THE FIRM'S LEASE ON ITS CURRENT MIDTOWN HEADQUARTERS EXPIRES IN SEVERAL YEARS MORGAN STANLEY WHICH WON'T FINALIZE THE DEAL UNTIL IT COMPLETES DUE DILIGENCE ON THE BUILDING DECLINED TO COMMENT AS DID OFFICIALS AT CITICORP THE CITICORP GROUP ACQUIRED THE PROPERTY THROUGH A PREPACKAGED BANKRUPTCYLAW FILING BY A PARTNERSHIP LED BY DEVELOPER DAVID SOLOMON OF MANHATTAN'S SOLOMON EQUITIES MR SOLOMON A RISING STAR OF THE 1980S DEVELOPMENT BOOM ALSO WAS THE DEVELOPER OF THE OTHER BUILDING ACQUIRED BY MORGAN STANLEY HE LOST BOTH BUILDINGS AFTER THE OFFICE MARKET COLLAPSED ALTHOUGH THE BANK GROUP WHICH INCLUDES HALIFAX NOVA SCOTIABASED BANK OF NOVA SCOTIA AND TORONTOBASED CANADIAN IMPERIAL BANK OF COMMERCE HAD HIRED NEWMARK & CO REAL ESTATE INC TO FIND TENANTS FOR THE SPACE THE NEW YORKBASED LEASING FIRM RESIGNED WHEN IT BECAME CLEAR THAT CITICORP PREFERRED TO KEEP THE SPACE VACANT TO ATTRACT BUYERS WE WERE THE LEASING AGENT AND THE OBJECTIVE WAS TO SELL SAID NEWMARK CHIEF EXECUTIVE BARRY GOSIN CITIBANK FELT THAT BUILDING VALUES WERE GOING UP AND I THINK THEY WERE RIGHT THEY FELT A USER OF THE SPACE WOULD BE THE BEST BUYER THE VACANCY RATE IN MIDTOWN IS ABOUT 15 BUT LARGE BLOCKS OF SPACE HAVE BECOME MORE SCARCE IN THE PAST YEAR 9403280106 940328 CORRECTIONS & AMPLIFICATIONS ARISTA RECORDS IS A LABEL OWNED BY BERTELSMANN MUSIC GROUP A UNIT OF GERMANY'S BERTELSMANN AG A PAGEONE ARTICLE FRIDAY ABOUT TIME WARNER INC'S CHAIRMAN INCORRECTLY IDENTIFIED ARISTA AS A LABEL OWNED BY SONY CORP YOUNG & RUBICAM NEW YORK CREATED A PRINT AD FOR NEW YORK TELEPHONE CO THAT HAS COME UNDER ATTACK BY THE NEW YORK ATTORNEY GENERAL'S OFFICE FRIDAY'S ADVERTISING COLUMN LISTED THE INCORRECT ADVERTISING AGENCY BECAUSE OF INACCURATE INFORMATION FROM NEW YORK TELEPHONE 9403280105 940328 MARKETING & MEDIA TIME INC TO USE RECYCLED PAPER IN ITS MAGAZINES BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME INC THE PUBLISHING ARM OF TIME WARNER INC SAID IT WILL SOON SWITCH TO USING RECYCLED PAPER IN ALL ITS MAGAZINES ADDING A NEW TWIST TO A CONTINUING TUSSLE BETWEEN PUBLISHERS AND ENVIRONMENTALISTS TIME MAGAZINE THE COMPANY'S FLAGSHIP WILL MAKE THE CHANGEOVER BY EARLY SUMMER ALONG WITH PEOPLE AND SPORTS ILLUSTRATED BY 1996 THE COMPANY SAID MOST OF THE 250000 TONS OF PAPER IT USES IN ITS 36 MAGAZINES WILL BE RECYCLED STOCK TIME MAGAZINE IS ANNOUNCING THE CHANGE IN ITS ISSUE TODAY WHICH INCLUDES A PUBLISHER'S NOTE EXPLAINING HOW THE COMPANY FORMERLY COULDN'T GET ENOUGH RECYCLED PAPER TO EVEN CONSIDER THE MOVE MAGAZINE PUBLISHERS HAVE COME UNDER HEAVY PRESSURE FROM ENVIRONMENTAL GROUPS CONCERNED ABOUT THE HUGE AMOUNTS OF PAPER THEY USE AS WELL AS THE POLLUTION GENERATED BY THE PAPERMAKING PROCESS PAPER THAT INCORPORATES A PERCENTAGE OF RECYCLED MATERIAL IS CONSIDERED EASIER ON THE ENVIRONMENT ONCE AN INDUSTRY LEADER LIKE TIME DOES THIS IT CREATES PRESSURE FOR OTHERS TO FOLLOW SAYS JOHN RUSTON AN ECONOMIC ANALYST AT THE ENVIRONMENTAL DEFENSE FUND IN NEW YORK WHILE TIME POLISHES ITS ENVIRONMENTAL IMAGE THE COMPANY ACKNOWLEDGES THAT ITS RECYCLED PAPER IS FAR FROM THE ULTIMATE SOLUTION THE COMPANY SAYS IT WILL CONTINUE WORKING WITH PRODUCERS TO CUT POLLUTION GENERATED BY PAPER MAKING MEANWHILE THE RECYCLED COMPONENT OF TIME'S NEW PAPER WILL BE ONLY ABOUT 10 OF THE TOTAL SINCE MAGAZINE PAPER HAS TO BE EXTREMELY THIN YET STRONG ENOUGH TO RUN THROUGH PRINTING PRESSES AT RACECAR SPEEDS IT STILL NEEDS TO INCLUDE MOSTLY VIRGIN PULP NEW PULP IS STRONGER THAN RECYCLED MATERIAL AND ALSO MAKES SMOOTHER SURFACES 9403280104 940328 WITH CLINTON'S NEW TAX LAW BUSINESS TRAVELERS HAVE TO BE EXTRA VIGILANT TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE IRS DOESN'T THINK MUCH OF TRAVELERS MIXING BUSINESS AND PLEASURE BECAUSE OF A NEW TAX LAW SIGNED BY PRESIDENT CLINTON LAST OCTOBER MANY TRAVELERS WON'T BE ABLE TO DEDUCT AS MUCH OF THEIR EXPENSES AS THEY ONCE DID FOR EXAMPLE THE NEW LAW CUTS THE AMOUNT THAT TRAVELERS AND NONTRAVELERS FOR THAT MATTER MAY DEDUCT FOR BUSINESS MEALS AND ENTERTAINMENT TO 50 FROM 80 THAT CHANGE IS EFFECTIVE BEGINNING IN 1994 THE NEW LAW ALSO MAKES IT MUCH TOUGHER FOR BUSINESS TRAVELERS TO DEDUCT MANY EXPENSES OF A SPOUSE OR ANY OTHER PERSON TRAVELING WITH THEM WARNS SIDNEY KESS A TAX LAWYER AND CONSULTING EDITOR AT CCH INC A RIVERWOODS ILLBASED PUBLISHER OF TAX INFORMATION UNDER THE NEW LAW WHICH BECAME EFFECTIVE JAN 1 OF THIS YEAR THERE ARE NOW THREE TESTS THAT DETERMINE WHETHER SUCH EXPENSES ARE DEDUCTIBLE THE FIRST MAY BE THE STRICTEST THE TRAVELING COMPANION MUST BE AN EMPLOYEE OF THE PERSON PAYING FOR THE TRIP OR CLAIMING THE EXPENSES SECOND THE PRESENCE OF THE OTHER PERSON MUST BE FOR A BONA FIDE BUSINESS PURPOSE NOT JUST FOR FUN AND FINALLY THE EXPENSES OF THAT PERSON MUST OTHERWISE BE DEDUCTIBLE AS AN ORDINARY AND NECESSARY BUSINESS EXPENSE SO DON'T TRY TELLING THE IRS THAT YOUR LOYAL SPOUSE OR FRIEND PERFORMED AN INVALUABLE SERVICE TO YOU AND YOUR EMPLOYER BY HELPING WRITE YOUR SPEECH OR ENTERTAIN CLIENTS SOME PEOPLE MAY BE TEMPTED TO HIRE THEIR SPOUSE FOR 1 A DAY BUT SIDNEY WEINMAN A LAWYER AND SENIOR EDITOR AT RESEARCH INSTITUTE OF AMERICA WARNS WITH MILD UNDERSTATEMENT THE IRS ISN'T LIKELY TO BUY IT BUT WHEN CALCULATING HOW MUCH OF YOUR HOTEL ROOM TO DEDUCT WHEN YOUR COMPANION ISN'T DEDUCTIBLE YOU DON'T HAVE TO LIMIT IT TO HALF THE PRICE OF A DOUBLE ROOM SAYS MARY B HEVENER A LAWYER AT MCDERMOTT WILL & EMERY IN WASHINGTON CLAIM THE COST OF A SINGLE ROOM SHE SAYS ALSO REMEMBER MANY HOTELS DON'T DIFFERENTIATE BETWEEN THE COST OF A SINGLE AND A DOUBLE THEY CHARGE THE SAME SHE ADDS OTHER GENERAL RULES TRAVEL COSTS TO AND FROM YOUR DESTINATION ARE DEDUCTIBLE ONLY IF YOUR TRIP WAS PRIMARILY RELATED TO YOUR TRADE OR BUSINESS IF THE TRIP WAS MAINLY FOR FUN TRAVEL EXPENSES TO AND FROM YOUR DESTINATION ARE NOT DEDUCTIBLE BUT ANY EXPENSES WHILE THERE THAT ARE CLEARLY RELATED TO BUSINESS WOULD BE THE NEW LAW ELIMINATES DEDUCTIONS FOR CLUB DUES INCLUDING AIRLINE CLUBS THAT ARE HIGHLY POPULAR WITH BUSINESS TRAVELERS SAYS MS HEVENER OF MCDERMOTT WILL & EMERY THERE IS A SNIPPET OF GOOD NEWS FOR SOME TRAVELERS THOUGH IF YOU DRIVE THE STANDARD DEDUCTIBLE RATE FOR MILEAGE ROSE TO 29 CENTS A MILE IN 1994 FROM 28 CENTS THAT'S 10 FOR EVERY 1000 MILES OF BUSINESSRELATED DRIVING BE SURE TO KEEP GOOD RECORDS IF YOU TRAVEL EXTENSIVELY IT MIGHT PAY TO HIRE AN ACCOUNTANT OR TAX LAWYER THIS IS NOT AN EASY SUBJECT SAYS MR KESS OF CCH FOR EXAMPLE SOME RULES MAY DIFFER DEPENDING ON WHETHER OR NOT YOU LEAVE THE US AND HOW LONG YOUR TRIP IS 9403280103 940328 WHO'S NEWS INTERPROVINCIAL NAMES NEW OFFICERS AS PART OF A REORGANIZATION EDMONTON ALBERTA INTERPROVINCIAL PIPE LINE SYSTEM INC NAMED DEREK P TRUSWELL 50 YEARS OLD AS ITS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER BENNY J PHILLIPS 51 AS ITS SENIOR VICE PRESIDENT DEVELOPMENT AND MEL F BELICH 46 AS ITS SENIOR VICE PRESIDENT AND GENERAL COUNSEL ALL EFFECTIVE MAY 5 MR TRUSWELL CURRENTLY IS INTERPROVINCIAL'S VICE PRESIDENT FINANCE WHILE MR PHILLIPS IS VICE PRESIDENT OPERATIONS MR BELICH WHO IS A LAW PARTNER AT MILNER FENERTY IN CALGARY ALBERTA WILL TAKE A POSITION THAT RECENTLY HAS BEEN UNFILLED INTERPROVINCIAL A UTILITIES HOLDING COMPANY ALSO NAMED PATRICK D DANIEL 47 AS CHIEF OPERATING OFFICER OF ITS WHOLLY OWNED EDMONTON PIPELINE SUBSIDIARY INTERPROVINCIAL PIPE LINE INC IT SAID R HUGH B SANGSTER 47 WAS NAMED TO THE NEW POSITION OF PRESIDENT AND CHIEF EXECUTIVE OF ITS 20OWNED AFFILIATE LAKEHEAD PIPE LINE CO DULUTH MR DANIEL WHO IS CURRENTLY VICE PRESIDENT PLANNING OF THE INTERPROVINCIAL PARENT WILL SUCCEED BRIAN MACNEILL 54 MR MACNEILL IS ALSO PRESIDENT AND CHIEF EXECUTIVE OF THE PARENT AND WILL RETAIN THOSE POSITIONS MR SANGSTER IS CURRENTLY LAKEHEAD'S VICE PRESIDENT AND GENERAL MANAGER AND HAS BEEN ACTING AS ITS CHIEF EXECUTIVE THE COMPANY SAID THE NEW APPOINTMENTS ARE RELATED TO A CORPORATE REORGANIZATION THAT TOOK EFFECT LAST YEAR 9403280102 940328 NATIONSBANK GAVE BUILDING JOB TO FIRM OF CHIEF'S SON IN 1993 CHARLOTTE NC NATIONSBANK CORP PAID 104 MILLION IN 1993 TO A CONSTRUCTION COMPANY HEADED BY THE SON OF HUGH L MCCOLL JR NATIONSBANK CHAIRMAN AND CHIEF EXECUTIVE OFFICER ACCORDING TO THE BANK'S PRELIMINARY PROXY STATEMENT ACCORDING TO THE PROXY NEITHER MR MCCOLL NOR HIS SON HAD ANY PARTICIPATION IN THE NEGOTIATION OR ARRANGEMENT OF THIS CONTRACT THE PROXY ADDS THAT SHELCO RECEIVED NO HIGHER PAYMENT THAN AN UNRELATED PARTY RENDERING SIMILAR SERVICES WOULD RECEIVE BOTH NATIONSBANK AND SHELCO DECLINED TO ELABORATE ON THE CONTRACT IN A STATEMENT ISSUED LAST MAY WHEN THE CONSTRUCTION PROJECT WAS ANNOUNCED NATIONSBANK SAID THE DEVELOPMENT INCLUDING THE BUILDING AND THE LAND WOULD COST 30 MILLION THE BUILDING SCHEDULED FOR COMPLETION IN THE THIRD QUARTER OF 1994 WILL BE OWNED AND OCCUPIED BY NATIONSBANK THE COMPANY SAID 9403280101 940328 COURIER FLIGHTS LET ENTREPRENEURS MAKE JOURNEYS ABROAD FOR A SONG BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL BUDGETMINDED ENTREPRENEURS GET GREAT PLEASURE FROM SAVING A BUNDLE ON TRAVEL AND COURIER FLIGHTS ARE ABOUT THE CHEAPEST WAY TO FLY OVERSEAS BY BABYSITTING OTHER PEOPLE'S PACKAGES ON COMMERCIAL FLIGHTS TRAVELERS CAN CUT THE COST OF THEIR INTERNATIONAL AIR TICKETS BY 50 TO 85 IN RARE CASES THEY CAN FLY FOR FREE IN RETURN THEY MUST PLAN THEIR TRAVELS FAR IN ADVANCE OR BE PREPARED TO LEAVE ON VERY SHORT NOTICE AND SURMOUNT A NUMBER OF OTHER INCONVENIENCES FOR BUSINESS IT'S PERFECT CONTENDS MANUEL CABRAL MIAMIBASED FOREIGN TRADE ADVISER FOR THE CHAMBER OF COMMERCE OF SEVILLE SPAIN AND THE PRICES ARE INCREDIBLE MR CABRAL FLIES AS A COURIER TO MADRID FROM MIAMI FOR WORK AND TO VISIT HIS FAMILY FOR ABOUT 400 ROUND TRIP THAT COMPARES WITH 618 FOR THE LEAST EXPENSIVE ADVANCEPURCHASE PRICE AND 1200 FOR THE FULLECONOMY FARE ADDS SUZANNE JOHNSON OWNER OF A GEMSTONE BUSINESS IN LAPEER MICH IT DEFINITELY TAKES A LITTLE MORE PLANNING BUT IT'S A CHEAP TICKET IT'S EASY IN JANUARY MS JOHNSON FLEW FROM LOS ANGELES TO TOKYO DID BUSINESS THERE FOR NINE DAYS THEN TOOK A PLEASURE TRIP TO KOBE THE COST OF HER AIR FARE 100 THE BEST BARGAINS COME FROM BOOKING AND FLYING AT THE LAST MINUTE A RECENT NEW YORKBRUSSELS ROUNDTRIP FOR DEPARTURE THE NEXT DAY WAS 99 WHILE A LOS ANGELESHONG KONG ROUND TRIP DEPARTING FOUR DAYS LATER WAS 275 SOMETIMES WHEN COURIER COMPANIES ARE DESPERATE FOR BODIES THEY'LL EVEN GIVE AWAY TICKETS THE INTERNATIONAL ASSOCIATION OF AIR TRAVEL COURIERS A LAKE WORTH FLA CLEARINGHOUSE FOR COURIER FLIGHTS AROUND THE WORLD ESTIMATES THAT 35000 COURIERS WILL LEAVE THE US THIS YEAR AND ANOTHER 40000 WILL TAKE OFF FROM OVERSEAS LOCATIONS THE NUMBER OF COURIER FLIGHTS AVAILABLE HAS GROWN BY 25 IN THE PAST THREE YEARS THE ASSOCIATION ESTIMATES WITH THE NUMBER OF EXPRESS SHIPMENTS BOOMING NEW COURIER ROUTES ARE BEING ADDED FOR NOW MOST USORIGINATING FLIGHTS LEAVE FROM NEW YORK MIAMI LOS ANGELES AND SAN FRANCISCO BUT AN INCREASING NUMBER OF COURIER FLIGHTS ARE LEAVING FROM CHICAGO HOUSTON AND WASHINGTON AND THE NUMBER OF OVERSEAS DESTINATIONS IS GROWING THIS IS HOW THE COURIER SYSTEM WORKS SAY A COMPANY NEEDS TO SEND SOME TIMESENSITIVE DOCUMENTS OVERNIGHT TO MILAN THE COMPANY CALLS AN EXPRESS SHIPPER SUCH AS FEDERAL EXPRESS CORP WHICH DISPATCHES THE PARCEL TO A WHOLESALE COURIER FIRM SUCH AS HALBART EXPRESS OF JAMAICA NY HALBART WILL ADD THAT PACKAGE TO ITS MILANBOUND EXPRESS SHIPMENTS FROM UNITED PARCEL SERVICE DHL AND OTHER CLIENTS THE COURIER FIRM SENDS THAT CONSOLIDATED SHIPMENT TO MILAN IN THE BAGGAGE HOLD OF A REGULAR COMMERCIAL FLIGHT AS A COURIER'S LUGGAGE NORMALLY THE COURIER DOESN'T EVEN SEE THE SHIPMENT BUT MERELY HANDS OVER THE PAPERWORK ON ARRIVAL COURIERS TRAVEL IN ECONOMY CLASS AND USUALLY GET TO KEEP THE FREQUENTFLIER MILES THEY EARN WITH THE MILEAGE ON TOP OF THE SAVINGS YOUR TICKET IS BASICALLY FREE SAYS MARIO SARAFRAZ OWNER OF AN ELECTRONICS IMPORTING COMPANY IN EMERYVILLE CALIF WITHOUT A DOUBT COURIER FLIGHTS ARE LOGISTICALLY DIFFICULT COURIERS MUST CHECK IN AT THE COURIER COMPANY'S OFFICE TWO OR THREE HOURS AHEAD OF THE FLIGHT THEY NORMALLY CAN TRAVEL WITH ONLY ONE CARRYON BAG OF THEIR OWN BECAUSE AIRLINES GENERALLY PERMIT JUST ONE COURIER PER FLIGHT A COMPANION WOULD HAVE TO PAY A HIGHER FARE TO TAKE THE SAME FLIGHT OR ARRANGE TO BE A COURIER ON A DIFFERENT PLANE OR AN ALTERNATE DAY COURIER TICKETS ALSO STIPULATE LENGTHS OF STAY IN THE DESTINATION MOST FLIGHTS TO EUROPE REQUIRE A SEVENDAY STAY ASIAN FLIGHTS HAVE A 14 OR 30DAY TURNAROUND TIME LATIN AMERICAN FLIGHTS VARY BETWEEN THREE AND NINE DAYS USUALLY THE COURIER HAS TO ESCORT A SHIPMENT ON THE RETURN LEG AS WELL AND SOMETIMES THINGS GO WRONG FLIGHTS ARE CANCELED COURIER REPRESENTATIVES ABROAD CAN FAIL TO SHOW UP WITH THE SHIPMENT MANIFESTS AND TICKETS AND ONCE IN A WHILE THE COURIER COMPANY BUMPS THE FLIER WHO HAS ALREADY PAID FOR THE TRIP SOME FIRSTTIMERS WORRY ABOUT THE LEGALITY OF THE CARGO JIM SALAZ A FORMER GASCOMPANY CLERK FROM REDLANDS CALIF WENT TO BANGKOK FOR VACATION ON HIS FIRST COURIER FLIGHT IN OCTOBER 1992 OH NO HE SAYS HE THOUGHT DRUG COURIERS I DON'T WANT TO WIND UP IN SOME THIRD WORLD PRISON NEVER TO BE HEARD FROM AGAIN SO HE CHECKED WITH HIS COURIER BROKER AND UNITED AIRLINES TO MAKE SURE HIS SHIPMENT WAS ABOVEBOARD ON THREE SUBSEQUENT COURIER TRIPS TO THAILAND MR SALAZ STARTED RESEARCHING HOW TO SET UP AN IMPORTEXPORT BUSINESS PEOPLE THINK THEY'LL BE ASKED TO CARRY DRUGS MONEY GOLD SAYS AN OFFICIAL FOR WORLD COURIER A NEW YORK FIRM THAT USES SOME FREELANCERS THERE ARE NO HANDCUFFS NO DRUGS NO INGOTS SHE SAYS THAT'S ONLY IN THE MOVIES WE INSPECT EVERYTHING THAT GOES OUT AND WE MAKE SURE IT IS WHAT IT'S SUPPOSED TO BE THOMAS NORDANSTAD A SWEDE WHO OWNS AN ART GALLERY IN NEW YORK FOUND OUT ABOUT COURIER FLIGHTS ABOUT 18 MONTHS AGO NOW HE USES THEM ONCE A MONTH OR SO FOR TRIPS TO EUROPE SOMETIMES TRAVELING TO WASHINGTON'S DULLES AIRPORT TO MEET THE FLIGHT HE NEEDS HE USES HIS WEEKLONG STAYOVERS TO MEET ARTISTS ATTEND OPENINGS BUY CONTEMPORARY ART ALL OVER EUROPE AND VISIT HIS FRIENDS I HAVE A TRAVEL BUDGET MR NORDANSTAD SAYS I MANAGED TO SAVE 10000 LAST YEAR BY STAYING WITH FRIENDS OR AT CHEAP HOTELS AND BY FLYING COURIER THE EASIEST WAY TO TAP INTO THIS TYPE OF TRAVEL IS THROUGH THE COURIER ASSOCIATION IN LAKE WORTH FLA