ESYSTEMS INC DALLAS C ROLAND HADEN DEAN OF THE COLLEGE OF ENGINEERING AT TEXAS A&M UNIVERSITY WAS NAMED A DIRECTOR OF THIS MAKER OF ELECTRONIC SYSTEMS DR HADEN 53 YEARS OLD SUCCEEDS LEVAN GRIFFIS FORMER ENGINEERING PROFESSOR AT SOUTHERN METHODIST UNIVERSITY WHO DIED IN DECEMBER 9403240115 940324 WORLD MARKETS STOCK PRICES IN TOKYO LONDON TUMBLE 14 LIFT FROM US RATE NEWS FAILS TO DAMP SELLING A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SLUMPED 14 WEDNESDAY PUMMELED BY ARBITRAGE SELLING WITH THE NIKKEI 225STOCK INDEX SINKING BELOW 20000 FOR THE FIRST TIME IN TWO WEEKS LONDON SHARES ALSO SANK 14 ON DISAPPOINTING INFLATION NEWS FRANKFURT PRICES ROSE AS GERMAN BONDS WERE BOOSTED BY THE US FEDERAL RESERVE'S INTERESTRATE TIGHTENING AND A RATE CUT BY THE GERMAN CENTRAL BANK WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11495 DOWN 009 REFLECTING LOWER ASIA/PACIFIC MARKETS AND HIGHER AMERICAN AND EUROPEAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 20577 UP 1103 OR 57 WITH ASIATIC OF MALAYSIA POSTING AN 84 GAIN IN ITS LOCAL CURRENCY OIL DRILLING STOCKS TRAILED AT 11418 DOWN 433 OR 37 WITH GLOBAL MARINE OF THE US SLIDING 81 IN LOCAL CURRENCY IN TOKYO THE BENCHMARK NIKKEI INDEX WHICH LOST 21592 POINTS ON TUESDAY SANK 29143 TO 1996210 THE FOURTH STRAIGHT SESSION OF DECLINES IN TRADING THURSDAY THE NIKKEI ROSE 8620 POINTS TO CLOSE THE MORNING SESSION AT 2004830 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 400 MILLION SHARES COMPARED WITH 37073 MILLION SHARES A DAY EARLIER LOSERS TROUNCED GAINERS 758274 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 1923 POINTS TUESDAY SKIDDED 1359 TO 161442 THE NIKKEI REACHED ITS SESSION HIGH OF 2032203 SHORTLY AFTER THE OPENING IN REACTION TO THE US FEDERAL RESERVE'S MOVE TO INCREASE THE TARGET FOR THE FEDERALFUNDS RATE THE RATE BANKS CHARGE EACH OTHER ON OVERNIGHT LOANS BY 025 PERCENTAGE POINT EFFECTIVELY RAISING SHORTTERM INTEREST RATES ONLY SLIGHTLY BUT SELLING PRESSURE MOUNTED AS CORPORATE AND INSTITUTIONAL INVESTORS DUMPED ISSUES IN AN EFFORT TO DRESS UP EARNINGS BEFORE CLOSING BOOKS ON FRIDAY THE FINAL TRADING DAY FOR SETTLEMENT IN THIS FISCAL YEAR WEAKNESS IN FUTURES PRICES PROMPTED INDEXLINKED ARBITRAGE SELLING LATE IN THE DAY KNOCKING THE NIKKEI UNDER 20000 IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLID 462 POINTS TO 31553 NEAR ITS INTRADAY LOW THE FT 30STOCK INDEX TUMBLED 338 POINTS OR 13 TO 24939 VOLUME WAS 7149 MILLION SHARES COMPARED WITH 6783 MILLION SHARES A DAY EARLIER STOCKS OPENED HIGHER AS INVESTORS EXPRESSED RELIEF THAT US INTEREST RATES ROSE LESS THAN EXPECTED LATER IN THE DAY DATA SHOWING BRITISH INFLATION IN FEBRUARY SLOWED LESS THAN EXPECTED DROVE GOVERNMENT BONDS AND STOCKINDEX FUTURES LOWER WHICH IN TURN DRAGGED DOWN THE EQUITIES MARKET THE DATA SHOWED THAT THE ANNUAL RATE OF RETAIL PRICE INFLATION WAS 24 IN FEBRUARY OFF FROM 25 IN JANUARY BUT ABOVE THE 22 RATE ECONOMISTS WERE EXPECTING IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1979 POINTS TO 216113 PRICES STAYED IN A NARROW BAND AMID LIGHT TRADING INVESTORS WERE RELIEVED BY THE SLIGHT INCREASE IN US RATES PARTICIPANTS ALSO WERE BUOYED BY ENCOURAGING GERMAN INFLATION NEWS AND THE GERMAN CENTRAL BANK'S EASING OF ITS RATE FOR SECURITIES REPURCHASE AGREEMENTS BY 025 PERCENTAGE POINT TO 35 THE GERMAN STATE OF NORTH RHINEWESTPHALIA REPORTED A 31 YEARONYEAR CONSUMER PRICE INCREASE THE LOWEST INFLATION RATE IN NEARLY THREE YEARS IN PARIS SHARES WERE NARROWLY MIXED IN LACKLUSTER TRADING INVESTORS LACKED STRONG INCENTIVES FOR BUYING IN AMSTERDAM STOCKS WERE MIXED AS THE MARKET FAILED TO SUSTAIN EARLY STRENGTH FUELED BY A MODERATE RECOVERY BY DUTCH BONDS IN MILAN EQUITIES SLIPPED SLIGHTLY AS INVESTORS REMAINED CAUTIOUS AHEAD OF ITALIAN ELECTIONS IN MADRID PRICES ROSE STRONGLY IN CHOPPY TRADING SENTIMENT IMPROVED AFTER THE MODEST INCREASE IN US RATES DISPELLED SOME UNCERTAINTIES IN STOCKHOLM SHARES SLIPPED IN THIN TRADING DESPITE LOWER BOND YIELDS AND ADVANCES FOR SEVERAL TOP BLUE CHIPS IN ZURICH STOCKS ADVANCED 11 AS INVESTORS SOUGHT BARGAINS AMONG BANKING AND INSURANCE ISSUES WHICH HAD BEEN SOLD OFF AMID RECENT INTERESTRATE WORRIES THE SMALL US RATE INCREASE HELPED QUELL UNCERTAINTY IN SYDNEY SHARES CLIMBED 19 AFTER US RATES ROSE ONLY SLIGHTLY REDUCING INVESTOR UNCERTAINTY THE AUSTRALIAN GOVERNMENT HAS SAID DOMESTIC INTEREST RATES WON'T RISE SOON AND THAT INFLATION IS UNDER CONTROL FOREIGN INVESTORS WERE BULLISH ABOUT AUSTRALIAN STOCKS FOR THE FIRST TIME IN WEEKS IN HONG KONG STOCKS SURGED 5 AS INVESTORS PUT ASIDE CONCERNS ABOUT THE BRITISH COLONY'S INTEREST RATES WHICH ARE WIDELY EXPECTED TO RISE ON FRIDAY FOR THE FIRST TIME IN NEARLY THREE YEARS THE RALLY CAME ON THE HEAVIEST TURNOVER IN SEVERAL WEEKS AND IN THE FACE OF NEWS THAT JARDINE MATHESON HOLDINGS ONE OF THE HONG KONG MARKET'S BIGGEST COMPANIES WOULD DELIST AT YEAR END FOREIGN AND HONG KONG INSTITUTIONAL FUNDS MAINTAINED TUESDAY'S BULLISHNESS AS THEY CHASED BLUECHIP ISSUES IN SINGAPORE STOCKS JUMPED 32 AS WORRIES ABOUT A BIG JUMP IN US INTEREST RATES WERE ASSUAGED IN KUALA LUMPUR PRICES SURGED 34 IN MODERATE TRADING CONTINUING THE REBOUND THAT BEGAN TUESDAY IN SEOUL EQUITIES ROSE ON EXPECTATIONS THAT SOUTH KOREA WOULD EASE STOCK TRADING RESTRICTIONS BUT THE GAINS WERE DAMPED BY RISING TENSIONS ABOUT NORTH KOREA'S NUCLEARWEAPONS PROGRAM IN TAIPEI SHARES ROSE 13 AS INVESTORS EXPRESSED RELIEF AT THE SMALL RISE IN US RATES IN MANILA STOCKS CLIMBED 15 IN LIGHT VOLUME BOOSTED BY A TECHNICAL RALLY IN WELLINGTON PRICES EDGED HIGHER AS BARGAINHUNTING BY FOREIGN INVESTORS WAS OFFSET BY LATE WEAKNESS IN THE NEW ZEALAND BOND MARKET THAT SPURRED A SELLOFF IN STOCKS IN BANGKOK EQUITIES SURGED 4 AS INVESTORS CONTINUED TO GAIN CONFIDENCE IN MEXICO CITY STOCKS SURGED 12 AS MOMENTUM CONTINUED FROM TUESDAY'S 54 JUMP ON NEWS THAT CHIAPAS PEACE NEGOTIATOR MANUEL CAMACHO SOLIS WOULD FORGO A PRESIDENTIAL BID AMONG CORPORATE DEVELOPMENTS IN LONDON GLAXO HOLDINGS TUMBLED 39 1/2 PENCE OR 6 TO 623 PENCE 927 THE DRUG MAKER FACED MOUNTING CONCERNS ABOUT COMMERCIAL THREATS TO ITS FLAGSHIP ANTIULCER DRUG ZANTAC LASMO FELL 4 PENCE OR 31 TO 124 PENCE THE ENERGY GROUP NARROWED ITS 1993 LOSS AFTER TAXES AND EXCEPTIONAL ITEMS TO 131 MILLION 1949 MILLION FROM 392 MILLION A YEAR EARLIER HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9403240114 940324 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BANKAMERICA CORP AN OFFERING OF 300 MILLION OF 72 SUBORDINATED NOTES VIA LEHMAN BROTHERS SPARTA SURGICAL CORP A PROPOSED OFFERING OF 750000 UNITS AT 10 A UNIT EACH CONSISTING OF ONE SERIES A CONVERTIBLE PREFERRED SHARE AND AN UNDETERMINED NUMBER OF COMMON SHARE PURCHASE WARRANTS VIA PAULSON INVESTMENT CO WEYERHAEUSER CO A SHELF OFFERING OF 790 MILLION OF DEBT SECURITIES PREFERRED STOCK AND PREFERENCE SHARES MAYBE VIA MORGAN STANLEY & CO AND GOLDMAN SACHS & CO 9403240113 940324 TECHNOLOGY & HEALTH ADVANCED LOGIC RECEIVES PATENT ON PC UPGRADE BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL IRVINE CALIF ADVANCED LOGIC RESEARCH INC SAID IT WON A PATENT ON UPGRADING PERSONAL COMPUTERS BY ADDING NEW MICROPROCESSOR CHIPS A TECHNIQUE POPULARIZED BY INTEL CORP AND USED BY SCORES OF PC MAKERS THE BREADTH OF ALR'S PATENT WASN'T IMMEDIATELY CLEAR BUT SOME ANALYSTS BELIEVE IT WILL LET THE COMPANY SEEK ROYALTIES FROM NUMEROUS COMPETITORS AND POSSIBLY INTEL THE NO 1 CHIP MAKER I BELIEVE IT HAS BROAD IMPLICATIONS SAID STEPHEN SMITH AN ANALYST AT PAINEWEBBER I EXPECT ALR TO PURSUE THIS AGGRESSIVELY ALR'S STOCK ROSE 16 ON THE NEWS RISING 1 TO 7125 IN NASDAQ STOCK MARKET TRADING ALR A MIDSIZE PC MAKER FORMED IN 1984 WAS AMONG THE FIRST TO PROMOTE THE CONCEPT OF LETTING COMPUTER USERS UPGRADE THEIR SYSTEMS' POWER RATHER THAN BUYING COMPLETE NEW SYSTEMS IN 1989 THE COMPANY FILED FOR A PATENT ON ITS UPGRADE SCHEME WHICH STARTED ON PCS POWERED BY INTEL'S 286 MICROPROCESSOR AND COULD BE UPDATED BY INSERTING A SMALL CIRCUIT BOARD THAT CONTAINED THE MOREPOWERFUL 386 CHIP THE COMPANY HAS CONTINUED TO SELL UPGRADE SYSTEMS WITH LATER GENERATIONS OF INTEL MICROPROCESSORS INCLUDING THE FLAGSHIP PENTIUM CHIP SEPARATELY INTEL BEGAN A CAMPAIGN TO GET COMPUTER MAKERS TO ADD EXTRA SOCKETS IN THEIR SYSTEMS ALLOWING CONSUMERS TO INSERT SOCALLED OVERDRIVE CHIPS TO BOOST THE SPEED OF THEIR SYSTEMS DATAQUEST INC ESTIMATES THAT 35 MILLION COMPUTERS BASED ON INTEL'S 486 CHIP HAD BEEN INSTALLED BY THE END OF LAST YEAR A LARGE MAJORITY OF THEM USED THE OVERDRIVE DESIGN SAID KIMBALL BROWN AN ANALYST AT THE SAN JOSE CALIF RESEARCH FIRM RON SIPKOVICH ALR'S CHIEF FINANCIAL OFFICER SAID THE PATENT COVERS A TECHNOLOGY THAT TURNS OFF THE ORIGINAL MICROPROCESSOR WHEN AN UPGRADE CHIP IS INSTALLED THE INTEL DESIGN USES THAT BASIC APPROACH BUT ALR'S LAWYERS SAID THEY HAVEN'T YET DETERMINED WHETHER OTHER SYSTEMS VIOLATE ITS PATENT WE ARE IN THE PROCESS NOW OF EVALUATING OTHER VENDORS' PRODUCTS TO DETERMINE WHETHER THERE IS INFRINGEMENT OR NOT MR SIPKOVICH SAID HE WOULDN'T COMMENT DIRECTLY ON THE COMPANY'S STRATEGY ABOUT SEEKING ROYALTIES BUT SAID IT IS OUR INTENT TO ENFORCE THE PATENT IF WE BELIEVE THERE IS INFRINGEMENT INTEL AND SEVERAL OTHER PC MAKERS DECLINED TO COMMENT UNTIL THEY HAD A CHANCE TO STUDY THE PATENT SEAN BURKE A DIRECTOR OF PRODUCT MARKETING AND PLANNING AT DELL COMPUTER CORP SAID THAT THOUGH MANY CONSUMERS ARE BUYING UPGRADEABLE PCS NOT THAT MANY END UP BUYING THE UPGRADE CHIPS WHICH TYPICALLY START AT AROUND 400 HE SUSPECTS THAT IS BECAUSE THE MICROPROCESSOR CHIP IS ONLY ONE COMPONENT AFFECTING A SYSTEM'S SPEED CONSUMERS ALSO MAY WANT OTHER NEW FEATURES INCLUDING LARGER DISK DRIVES FOR STORING DATA HE SAID 9403240112 940324 TECHNOLOGY & HEALTH NICOTINE PATCH SHOWS PROMISE IN COLITIS STUDY BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL NICOTINE PATCHES USED TO HELP SMOKERS QUIT ARE HELPFUL IN TREATING ULCERATIVE COLITIS A MAJOR DISEASE OF THE DIGESTIVE SYSTEM A NEW STUDY FOUND BRITISH RESEARCHERS REPORTED THAT ABOUT HALF OF PATIENTS WHO USED A NICOTINE PATCH FOR SIX WEEKS HAD COMPLETE RELIEF OF SYMPTOMS OF THE DISEASE COMPARED WITH ONEFOURTH OF PATIENTS WHO USED A PATCH WITHOUT NICOTINE PARTIAL RELIEF OF SYMPTOMS WAS ALSO HIGHER AMONG THOSE USING A NICOTINE PATCH BUT SIDE EFFECTS INCLUDING NAUSEA LIGHTHEADEDNESS AND HEADACHES WERE HIGHER IN THE NICOTINE GROUP ESPECIALLY AMONG PATIENTS WHO HAD NEVER SMOKED OUR RESULTS SUGGEST THAT NICOTINE MAY BE A SUITABLE TREATMENT IN PATIENTS ABLE TO TOLERATE THE DRUG SAID THE RESEARCHERS WHO WERE LED BY RUPERT D PULLAN AND JOHN RHODES AT THE UNIVERSITY HOSPITAL OF WALES CARDIFF THEIR REPORT BASED ON A STUDY OF 72 PATIENTS APPEARS IN THIS WEEK'S NEW ENGLAND JOURNAL OF MEDICINE THE STUDY WAS FUNDED IN PART BY KABI PHARMACIA THERAPEUTICS OF SWEDEN ONE OF SEVERAL COMPANIES THAT MAKES BOTH NICOTINE PATCHES AND THE DRUGS USED FOR ULCERATIVE COLITIS PATIENTS IN THE STUDY ALSO RECEIVED ANTIINFLAMMATORY MEDICATION THE STANDARD TREATMENT FOR THE ILLNESS ULCERATIVE COLITIS CHARACTERIZED BY CHRONIC AND PAINFUL BOUTS OF SEVERE DIARRHEA AFFLICTS AN ESTIMATED 750000 TO ONE MILLION AMERICANS ACCORDING TO THE CROHN'S AND COLITIS FOUNDATION OF AMERICA NEW YORK CROHN'S DISEASE IS SIMILAR TO ULCERATIVE COLITIS BUT THE TWO ILLNESSES ARE DISTINGUISHED BY THE FACT CROHN'S DISEASE ISN'T RELIEVED BY NICOTINE DOCTORS LONG HAVE SUSPECTED A BENEFICIAL EFFECT OF NICOTINE ON ULCERATIVE COLITIS SINCE MOST PEOPLE WHO HAVE IT DON'T SMOKE AND PEOPLE WITH THE ILLNESS WHO HAVE SMOKED USUALLY GET IT WITHIN A FEW YEARS AFTER THEY HAVE QUIT THE BRITISH STUDY IS THE FIRST MAJOR CONTROLLED TRIAL THAT DEMONSTRATES THE EFFECTS OF NICOTINE PATCHES ON ULCERATIVE COLITIS WHY NICOTINE WOULD AMELIORATE SYMPTOMS ISN'T CLEAR THOUGH RESEARCHERS SAY THAT AMONG OTHER THINGS IT AFFECTS PRODUCTION OF MUCUS IN THE COLON NONE OF THE PATIENTS REPORTED AN URGE TO SMOKE AFTER THE TRIAL RESEARCHERS SAID BUT STEPHEN B HANAUER OF THE UNIVERSITY OF CHICAGO MEDICAL CENTER SAID THAT THE STUDY LASTED ONLY SIX WEEKS NICOTINE DOES HAVE ADDICTIVE POTENTIAL AND ULCERATIVE COLITIS PATIENTS NEED LONGTERM TREATMENT HE SAID HE ALSO SAID PATIENTS IN THE TRIAL HADN'T RESPONDED WELL TO STANDARD TREATMENT AND THUS THEY WEREN'T REPRESENTATIVE OF MOST PATIENTS WITH THE CONDITION IN AN EDITORIAL ACCOMPANYING THE REPORT DR HANAUER CITED WHAT HE CONSIDERED OTHER LIMITATIONS AND SAID IT DIDN'T PROVIDE CONVINCING EVIDENCE OF A TRUE BIOLOGIC EFFECT OF NICOTINE ON THE DISEASE 9403240111 940324 PARTNERSHIP IS TRYING TO ORGANIZE BID OF 35 BILLION FOR COLUMBIA GAS UNIT BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AN INVESTMENT PARTNERSHIP SAID IT IS SEEKING TO ORGANIZE A 35 BILLION BID FOR THE NATURALGAS TRANSMISSION UNIT OF COLUMBIA GAS SYSTEM INC WILLIAM DIMELING A PARTNER IN DIMELING SCHREIBER & PARK A PHILADELPHIABASED GROUP THAT SPECIALIZES IN BUYING COMPANIES IN BANKRUPTCYCOURT PROCEEDINGS SAID HIS GROUP WOULD NEED TO RAISE 500 MILLION TO 700 MILLION IN EQUITY FOR SUCH A BID THE REMAINDER HE SAID WOULD BE FINANCED THROUGH DEBT COLUMBIA GAS SYSTEM FILED FOR CHAPTER 11 BANKRUPTCYCOURT PROTECTION IN MID1991 WHEN IT WAS BURDENED BY FIXEDPRICE CONTRACTS TO BUY NATURAL GAS AT A TIME WHEN THE PRICE OF GAS HAD FALLEN SHARPLY GAS SUPPLIERS HAVE FILED CLAIMS TOTALING 10 BILLION AGAINST THE COMPANY WHICH INSISTS A MORE REALISTIC NUMBER WOULD BE AROUND 900 MILLION ALTHOUGH MR DIMELING SAID HE HASN'T ARRANGED FINANCING YET HE SAID HE IS IN TALKS WITH A NUMBER OF UTILITIES CREDITORS AND INVESTMENT BANKERS ONE EAST COAST ENERGY COMPANY WHICH DECLINED TO BE IDENTIFIED SEPARATELY CONFIRMED THAT IT IS CONSIDERING TAKING PART IN THE OFFER AN OFFER FOR THE COLUMBIA GAS UNIT IF IT MATERIALIZES WOULD BE A VASTLY LARGER INVESTMENT THAN THOSE HIS FIRM HAS MADE UP TO NOW PREVIOUS INVESTMENTS OF THE GROUP HAVE BEEN IN THE 40 MILLION TO 50 MILLION RANGE INCLUDING A PENDING AGREEMENT TO PURCHASE PIPER AIRCRAFT CORP VERO BEACH FLA AND PURCHASES OF MCCALL PATTERN CO NEW YORK GULFSTREAM RESOURCES INC A NEW ORLEANS OIL AND GAS COMPANY AND PIETRO'S CORP A PIZZA CHAIN PURCHASED IN THE LATE 1980S FROM CAMPBELL SOUP CO AT 35 BILLION MR DIMELING SAID THE GROUP WOULD BE PAYING ABOUT FIVE TIMES NET CASH FLOW WHICH HE CALLED A GOOD PRICE A SPOKESMAN FOR COLUMBIA GAS'S PIPELINE UNIT SAID THE UNIT WASN'T FOR SALE BUT WE'D CONSIDER ANY BONA FIDE OFFER HE SAID THE COMPANY HADN'T YET RECEIVED ANY ACQUISITION OFFERS FOR THE PIPELINE UNIT A SEPARATE GROUP ALSO IS UNDERSTOOD TO BE EXPLORING A POSSIBLE BID FOR THE PIPELINE BUSINESS THE TAG GROUP COMPOSED OF UNITS OF COASTAL STATES PETROLEUM AND PUBLIC SERVICE ENTERPRISE GROUP INC ANY OFFER FOR THE BUSINESS WOULD HAVE TO BE APPROVED BY THE BANKRUPTCY COURT THE PIPELINE SUBSIDIARY IN JANUARY FILED A REORGANIZATION PLAN THAT VALUED THE UNIT AT 31 BILLION IT ALSO CALLED FOR THE PARENT TO INJECT 200 MILLION IN CASH OR STOCK INTO THE UNIT POTENTIAL BIDDERS FOR THE WILMINGTON DEL COMPANY'S PIPELINE UNIT WERE AIDED RECENTLY BY A COURT RULING REQUIRING THE COMPANY TO OPEN ITS BOOKS TO INTERESTED PARTIES A MOVE THE COMPANY INSISTED WOULD COMPLICATE THE REORGANIZATION CREDITORS AND OTHERS INSIST MAKING THE DATA AVAILABLE PERMITS THEM TO GET A MORE ACCURATE READING ON THE COMPANY'S VALUE 9403240110 940324 US MAY SEEK AN INDICTMENT OF CONGRESSMAN WALTER TUCKER DEMOCRAT FROM CALIFORNIA CALLED TARGET IN BRIBERY PROBE BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES FEDERAL PROSECUTORS ARE CONSIDERING SEEKING CRIMINAL CHARGES AGAINST DEMOCRATIC REP WALTER TUCKER OF CALIFORNIA PEOPLE CLOSE TO THE SITUATION SAID A NEARLY THREEYEAR INVESTIGATION BY THE US ATTORNEY'S OFFICE AND THE FEDERAL BUREAU OF INVESTIGATION HERE FOCUSED ON ALLEGED BRIBERY WHILE REP TUCKER SERVED AS MAYOR OF COMPTON CALIF IN 1991 AND 1992 RELYING ON TAPES FROM HIDDEN VIDEO CAMERAS AND OTHER MATERIAL GATHERED DURING THE UNDERCOVER PHASE OF THE INQUIRY THESE PEOPLE SAID PROSECUTORS HERE ARE LEANING TOWARD SEEKING FELONY CHARGES AGAINST REP TUCKER AND PATRICIA MOORE A FORMER MEMBER OF THE COMPTON CITY COUNCIL BUT THE FINAL DECISION HAS BEEN REFERRED TO SENIOR JUSTICE DEPARTMENT OFFICIALS IN WASHINGTON BECAUSE OF THE POSSIBLE POLITICAL SENSITIVITY OF THE CASE BOTH REP TUCKER AND MS MOORE SAID THEY WEREN'T AWARE OF THE INVESTIGATION AND DENIED ANY WRONGDOING IT'S AN ELECTION YEAR REP TUCKER SAID IN A TELEPHONE INTERVIEW YESTERDAY JUSTICE DEPARTMENT AND FBI PRESS OFFICERS IN LOS ANGELES AND WASHINGTON DECLINED TO COMMENT ON THE CASE ALTHOUGH OTHERS SAID THAT LOCAL PROSECUTORS MONTHS AGO URGED PROCEEDING TO INDICTMENT BUT PROSECUTORS COULD STILL CHANGE THEIR CURRENT PLAN TO PRESENT THEIR FINDINGS TO A GRAND JURY THE CASE COULD BE CONTROVERSIAL BECAUSE BOTH FORMER CITY OFFICIALS ARE PROMINENTLY IDENTIFIED WITH MINORITY CAUSES AND HAVE CLOSE TIES TO SOME OF THE AREA'S MOST POWERFUL BLACK COMMUNITY LEADERS BLACK LEADERS IN THE PAST HAVE CRITICIZED THE JUSTICE DEPARTMENT FOR WHAT THEY CLAIM IS THE UNFAIR TARGETING OF MINORITY OFFICEHOLDERS FOR CRIMINAL PROSECUTION COMPTON AN ECONOMICALLY DEPRESSED CITY SOUTH OF THE WATTS SECTION OF LOS ANGELES BECAME A SYMBOL OF RACIAL DIVISION DURING THE RIOTS HERE TWO YEARS AGO REP TUCKER A 36YEAROLD MINISTER WHO IS SERVING HIS FIRST TERM IN THE HOUSE GAINED PROMINENCE ESCORTING PRESIDENT BUSH AND OTHER DIGNITARIES AROUND THE DAMAGED AREA THE SON OF A LONGTIME COMPTON MAYOR AND A FORMER COUNTY PROSECUTOR HIMSELF REP TUCKER IS ONE OF THE FASTESTRISING BLACK POLITICIANS IN SOUTHERN CALIFORNIA ONE PERSON FAMILIAR WITH THE CASE SAID ANY INDICTMENT WOULD BE BASED PARTLY ON TAPES OF A STING OPERATION THAT APPEAR TO SHOW REP TUCKER AND MS MOORE ACCEPTING MONEY ALLEGEDLY TO MAKE SURE CERTAIN ITEMS WERE PLACED ON THE CITY COUNCIL'S AGENDA ASKED ABOUT THOSE ALLEGATIONS REP TUCKER SAID I DENY THEM OF COURSE HE SAID HE COULD THINK OF A LOT OF PEOPLE WHO WOULD LIKE TO SMEAR MY NAME ADDING THAT NO FEDERAL INVESTIGATORS HAVE TALKED TO ME ABOUT THIS IN A SEPARATE INTERVIEW MS MOORE A LONGTIME COMMUNITY ACTIVIST SAID I'VE NEVER DONE ANYTHING LIKE THAT ADDING THAT THIS IS THE FIRST TIME I HAVE EVER HEARD OF THIS 9403240109 940324 CORPORATE FOCUS UNISYS HOPES MAINFRAME BY A NEW NAME IS A WINNER DATABASE SEARCHER MAY EASE PROBLEM OF DWINDLING REVENUE DESPITE PROFITS BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR AN IDEA OF JUST HOW HARD IT CAN BE TO TURN AROUND AN AILING PROPRIETARY MAINFRAME COMPUTER COMPANY AND BRING NEW GROWTH NEVER MIND IBM CONSIDER UNISYS CORP IN FOUR YEARS OF REVAMPING AND RESTRUCTURING THE AMALGAM OF THE OLD BURROUGHS AND SPERRY COMPUTER COMPANIES HAS CUT ITS WORK FORCE BY 40 TAKEN CHARGES TOTALING 16 BILLION AND SHIFTED ITS VISION AWAY FROM HARDWARE TO FOCUS ON HIGHERPROFIT SERVICES UNISYS EXECUTIVES WON'T EVEN MUTTER THE M WORD MAINFRAMES ANY MORE PREFERRING TO CALL THEIR MUSCLEBOUND COMPUTERS ENTERPRISE SERVERS THE RESULT A NOTSOSHABBY NINE STRAIGHT QUARTERS OF PROFITS YET UNISYS'S STOCK PRICE DESPITE A RECENT BUMP UP TO ITS 52WEEK HIGH OF 16 A SHARE LANGUISHES WELL BELOW BETTER DAYS OF 47 A SHARE BECAUSE THE MOST IMPORTANT LINE REVENUE KEEPS FALLING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING UNISYS STOCK CLOSED YESTERDAY AT 1550 A SHARE UNCHANGED UNISYS CHIEF EXECUTIVE OFFICER JAMES UNRUH ISN'T EXPECTING AN UPTURN IN REVENUE UNTIL POSSIBLY THE SECOND HALF OF THIS YEAR IT'S THEIR SINGLE BIGGEST PROBLEM SAYS JAMES CASSELL VICE PRESIDENT OF THE STAMFORD CONN CONSULTING FIRM GARTNER GROUP THEY CAN'T MAKE THE MOST OF WHAT THEY'VE GOT TODAY UNISYS TAKES ANOTHER STAB AT REACHING OUT TO NEW CUSTOMERS AND DIVIDING ITSELF FROM THE PACK IT WILL UNVEIL A SYSTEM THAT COULD MAKE IT EASIER FOR AIRLINES BANKS AND OTHER SERVICE COMPANIES TO RESEARCH THEIR CUSTOMERS' BUYING HABITS CALLED THE DATACENTRAL SERVER UNISYS HAS DESIGNED A MAINFRAME OOPS ENTERPRISE SERVER THAT CAN SEARCH OTHER DATABASES FOR INFORMATION THAT WOULD LET CLIENTS SUCH AS AN AIRLINE HANDLING TICKET RESERVATIONS HUNT UP WHAT HOTEL OR AUTO RENTAL A TRAVELER PREFERS MORE IMPORTANTLY FOR UNISYS THE NEW PRODUCT COULD BRING AS MUCH AS 1 BILLION OVER FIVE YEARS AND LURE CUSTOMERS THAT NOW USE RIVAL HARDWARE AND SOFTWARE BEARING BRAND NAMES SUCH AS INTERNATIONAL BUSINESS MACHINES CORP CURRENTLY ONLY A 10TO15 PORTION OF UNISYS'S SALES IS MADE TO NEWCOMERS THE REST RELIES ON THE AGING BASE OF CUSTOMERS OF THE OLD BURROUGHS AND SPERRY WHEN THEY MERGED IN THE MID1980S THE GOAL WAS TO BECOME THE WORLD'S NO 2 COMPUTER MAKER IN PART BY REACHING AN ENTIRELY NEW SET OF BUYERS THE NEW DATACENTRAL SERVER TAKES AIM AT REACHING OUT BY WORKING WITH NONUNISYS GEAR STARTING WITH THE AIRLINESRESERVATION BUSINESS WHERE THE COMPANY IS ALREADY A STRONG CONTENDER THE NEW SYSTEM STANDS OUT BECAUSE OF ITS ABILITY TO DRAW DATA FROM DIFFERENT SOURCES WHILE THIS PROCESS USUALLY TAKES HOURS AS THE COMPUTER LABORIOUSLY TRANSLATES DATA FROM ONE FORMAT TO RUN ON ANOTHER UNISYS HAS PACKAGED A SYSTEM THAT CAN DO IT ALL INSTANTANEOUSLY DRAWING FROM IBM DIGITAL EQUIPMENT CORP AND EVENTUALLY OTHER BRANDS THE KEY IS AN INNOVATIVE ACCELERATOR THAT DOES THE TRANSACTION PROCESS AT THE SAME TIME THAT ANOTHER PART OF THE MACHINE DOES THE SEARCH PROCESS AIRLINE AFICIONADOS ARE EXCITED ABOUT THE DEVELOPMENT IT'S LONG OVERDUE SAYS RANDY PETERSEN PRESIDENT OF FREQUENT FLYER SERVICES WHICH MANAGES AND ADVISES TRAVEL AGENCIES THE AMOUNT OF INFORMATION AIRLINES HAVE THAT THEY DON'T KNOW WHAT TO DO WITH IS TREMENDOUS THE SYSTEM WILL SELL FOR BETWEEN 500000 AND 1 MILLION FOR AN INITIAL ENTRY BUT CUSTOMERS ARE EXPECTED TO PURCHASE MANY DIFFERENT KINDS OF APPLICATIONS AND PAY A LOT MORE UNISYS HOPES THAT DATACENTRAL BY GETTING A JUMP ON THE MARKET AHEAD OF IBM AND OTHERS THAT ARE WORKING ON SIMILAR QUERY SYSTEMS WILL CONVINCE THE WORLD THAT IT CAN PROVIDE THE LINK BETWEEN OPEN SYSTEMS AND PROPRIETARY OR INCOMPATIBLE ONES INDEED UNISYS IS COBBLING TOGETHER AN IMPRESSIVE ARRAY OF CHALLENGING AND PROMINENT CONTRACTS MR UNRUH HOPES CUSTOMERS WILL BE IMPRESSED BY THE COMPANY'S WILLINGNESS TO ACCEPT DIFFICULT ASSIGNMENTS THEY INCLUDE A 1 BILLION CONTRACT THIS YEAR FOR AN AMAZONREGION ENVIRONMENTAL SURVEILLANCE SYSTEM A CONTRACT TO COMPUTERIZE THE LARGEST SAVINGS BANK IN RUSSIA FOR 127 MILLION AND OTHER BANKINGAUTOMATION CONTRACTS IN EASTERN EUROPE TOTALING 400 MILLION LAST YEAR NASDAQ AWARDED UNISYS A 25 MILLION CONTRACT TO PROVIDE A SYSTEM THAT COULD HANDLE 800 MILLION TRADES A DAY I HAVE NEVER BEEN MORE CONVINCED THAT BEING SERVICESLED IS THE CORRECT PATH FOR UNISYS TO TAKE MR UNRUH HAS SAID REPEATEDLY BUT THE SERVICES SECTOR IS A HARD BUSINESS TO MAKE MONEY IN WHEN A COMPANY IS UP AGAINST THE LIKES OF IBM ANDERSEN CONSULTING AND GENERAL MOTORS CORP'S ELECTRONIC DATA SYSTEMS UNISYS'S PROFIT MARGINS ARE BETTER THAN IBM'S AT THIS POINT 23 COMPARED TO 14 ACCORDING TO MR UNRUH MR UNRUH ALSO IS PUSHING ON THE HARDWARE FRONT LEADING IBM AND RIVALS IN THE TRANSITION TO MORE COSTEFFICIENT COOLER CMOS CHIPS THAT LET MAINFRAMESIZED MACHINES DO AWAY WITH OLD COSTLY WATERCOOLED SYSTEMS UNISYS STARTED SHIPPING ITS MACHINES LAST FALL WHILE IBM PLANS TO ANNOUNCE ITS NEW GENERATION OF CMOSBASED MAINFRAMES NEXT MONTH MR UNRUH RECENTLY TOLD ANALYSTS THAT HE WAS SEEING AN INCREASE IN ORDERS OF THE NEW MACHINES BUT ANALYSTS STILL WEREN'T OVERLY IMPRESSED WHILE UNIT SALES OF THE SERVERS MAY BE UP REVENUE LAST YEAR FOR ENTERPRISE SYSTEMS FELL 21 TO 17 BILLION BECAUSE OF LOWER PRICES AND THE TRANSITION TO THE CMOS SYSTEMS AND WHEN IBM DOES BEGIN SHIPPING ITS NEW MACHINES UNISYS COULD FIND ITSELF AGAIN IN THE SHADOW OF BIG BLUE ANALYSTS PREDICT IF THE NEW MOVES DON'T WORK MR UNRUH PROMISES HE'LL KEEP AT THE COSTCUTTING AS HE TELLS ANALYSTS WE'RE NOT FINISHED YET 9403240108 940324 TECHNOLOGY & HEALTH MEAT INDUSTRY CAUTIOUSLY WELCOMES NEW US SAFEHANDLING REGULATIONS BY ANGELA SHAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATION'S MEAT AND POULTRY INDUSTRY CAUTIOUSLY WELCOMED THE NEW SAFEHANDLING LABELS UNVEILED BY THE AGRICULTURE DEPARTMENT UNLIKE WHEN THE ORIGINAL LABELING RULE WAS PUT OUT LAST AUGUST THE DEPARTMENT YESTERDAY GAVE THE INDUSTRY 60 DAYS TO COMPLY FOR GROUNDMEAT PRODUCTS AND UNTIL JULY 6 TO ATTACH LABELS ON ALL OTHER RAWMEAT PRODUCTS UNDER EXPEDITED PROCEDURES THE DEPARTMENT ORIGINALLY WANTED TO REQUIRE USE OF THE LABELS BY LAST OCT 15 BUT SEVERAL INDUSTRY GROUPS SUED ON THE GROUND THAT THE DEPARTMENT DIDN'T HAVE ENOUGH REASON TO SPEED UP THE REGULATORY PROCESS ON OCT 14 A FEDERAL JUDGE IN AUSTIN TEXAS SIDED WITH THE INDUSTRY THE TIME GIVEN TO THE INDUSTRY TO IMPLEMENT THE NEW RULE APPEARS TO BE MUCH MORE REASONABLE SAID BRUCE GATES VICE PRESIDENT OF THE NATIONAL AMERICAN WHOLESALE GROCERS ASSOCIATION ONE OF THE GROUPS THAT BROUGHT THE SUIT MR GATES ADDED THAT HIS GROUP COULDN'T COMMENT ON WHETHER ANOTHER SUIT WILL FOLLOW UNTIL IT HAD REVIEWED THE ENTIRE LABELING PROPOSAL JENS KNUTSON DIRECTOR OF ECONOMIC RESEARCH AT THE AMERICAN MEAT INSTITUTE SAID RETAILERS WOULD BE THE HARDEST HIT FINANCIALLY HE ESTIMATES THE COST FOR RETAILERS TO BUY AND APPLY LABELS TO BE AT LEAST 500 MILLION ANNUALLY IN ADDITION MEAT PROCESSORS WOULD HAVE TO APPLY LABELS FOR PACKAGES SOLD TO RESTAURANTS IN TOTAL THE MEAT INDUSTRY WILL PRODUCE 70 BILLION POUNDS OF MEAT THIS YEAR THE NEW LABELS CARRY ESSENTIALLY THE SAME MESSAGE TELLING CONSUMERS THAT MEAT AND POULTRY PRODUCTS MAY CONTAIN BACTERIA THAT COULD PROVE HARMFUL IF MISHANDLED OR COOKED IMPROPERLY GUIDELINES STATE THAT FROZEN PRODUCTS SHOULD BE KEPT FROZEN AND THAWED IN A MICROWAVE OR REFRIGERATOR MEAT AND POULTRY PRODUCTS SHOULD BE KEPT AWAY FROM OTHER FOODS AND WORKING SURFACES AND UTENSILS SHOULD BE IMMEDIATELY WASHED AFTER TOUCHING THE RAW MEAT WHICH SHOULD BE COOKED PROPERLY FINALLY THE GUIDELINES SAY LEFTOVERS SHOULD BE FROZEN OR DISCARDED ONE OF THE LABEL'S CHANGES IS A GRAPHIC SHOWING A PAIR OF HANDS WASHING BENEATH A FAUCET THE ORIGINAL GRAPHIC DISPLAYING A SUDSY BAR OF SOAP WAS DECRIED AS TELLING CONSUMERS TO WASH THEIR MEAT AND POULTRY WITH SOAP LABELS WILL APPEAR FIRST ON RAW GROUND PRODUCTS BECAUSE OF THE GREATER RISK FOR PATHOGENS TO EXIST IN THEM THE URGENCY TO LABEL MEAT AND POULTRY PRODUCTS BEGAN AFTER SEVERAL CHILDREN IN THE PACIFIC NORTHWEST EITHER BECAME ILL OR DIED FROM E COLI BACTERIUM PRESENT IN HAMBURGER PATTIES 9403240107 940324 PENTAGON URGES SHIFT OF WORK TO CONTRACTORS MILITARY DEPOTS WOULD LOSE REPAIR AND UPGRADE JOBS IF PROPOSAL IS APPROVED BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A PENTAGON TASK FORCE IN A MOVE THAT COULD HAVE MULTIBILLIONDOLLAR IMPLICATIONS FOR THE DEFENSE INDUSTRY HAS PRIVATELY RECOMMENDED OVER THE AIR FORCE'S OBJECTIONS THAT MUCH OF THE MAINTENANCE WORK CURRENTLY DONE BY MILITARY DEPOTS BE TURNED OVER TO THE PRIVATE SECTOR IF APPROVED BY DEFENSE SECRETARY WILLIAM PERRY AND BY CONGRESS THE POSITION RECOMMENDED EARLIER THIS WEEK BY THE TASK FORCE WOULD RESOLVE A LONGRUNNING BATTLE BETWEEN THE MILITARY AND THE DEFENSE INDUSTRY IN THE POSTCOLD WAR ERA THE INDUSTRY HAS SOUGHT MORE OF THE MILITARY'S MAINTENANCE AND UPGRADE WORK ONLY TO SEE IT ABSORBED INHOUSE THE DEFENSE INDUSTRY HAS FOUGHT FOR JUST THE SORT OF COMPROMISE THAT IS ON THE VERGE OF EMERGING FROM THE PENTAGON THE RECOMMENDATION IS ESPECIALLY GOOD NEWS FOR THE AEROSPACE INDUSTRY BECAUSE THE AIR FORCE UNLIKE THE NAVY AND THE ARMY HAS VIGOROUSLY RESISTED CURTAILING ITS INHOUSE WORK ON WHICH IT SPENDS ABOUT 5 BILLION A YEAR THE TASK FORCE RECOMMENDATION APPEARS TO PLACE AT LEAST TWO OF THE AIR FORCE'S FIVE BIG AIR LOGISTICS CENTERS SQUARELY IN THE CROSSHAIRS OF THE NEXT ROUND OF BASE CLOSINGS SCHEDULED FOR NEXT YEAR THE FIVE CENTERS WHICH EMPLOY ABOUT 50000 CIVILIANS ARE LOCATED IN SAN ANTONIO OKLAHOMA CITY SACRAMENTO CALIF OGDEN UTAH AND MACON GA IN MORE GOOD NEWS FOR THE DEFENSE INDUSTRY THE TASK FORCE ALSO RECOMMENDS DROPPING THE PRACTICE OF PUTTING WORK UP FOR BIDS FROM BOTH THE PRIVATE SECTOR AND THE MILITARY DEPOTS IN ONE SUCH INSTANCE THE NAVY'S NORFOLK DEPOT TOOK AWAY FROM GRUMMAN CORP A CONTRACT TO STRIP AND REPAINT F14 FIGHTERS A SURPRISINGLY COMPLEX JOB GRUMMAN HAD BEEN CHARGING THE NAVY 120000 A PLANE NORFOLK'S BID WAS 28000 APIECE THE DEFENSE INDUSTRY HAD DEEPLY RESENTED SUCH COMPETITIONS WHICH IT CONTENDED COULD NEVER BE FAIR BECAUSE THE GOVERNMENT DIDN'T REALLY HAVE TO ACCOUNT FOR ITS OVERHEAD THE PLAYING FIELD IS DEFINITELY NOT LEVEL WILLIAM ANDERS THEN CHAIRMAN OF GENERAL DYNAMICS CORP SAID LAST YEAR DEFENSE INDUSTRY OFFICIALS WERE PRIVATELY PLEASED WITH THEIR VICTORY BUT WOULDN'T CROW ABOUT IT IN PUBLIC FOR FEAR OF STIRRING UP OPPOSITION LOREN THOMPSON A GEORGETOWN UNIVERSITY PROFESSOR WHO HAS REPRESENTED THE CONSOLIDATED VIEWS OF THE INDUSTRY BEFORE THE TASK FORCE DECLINED TO COMMENT AS DID AN OFFICIAL OF THE AEROSPACE INDUSTRIES ASSOCIATION A TRADE GROUP THAT HAS WORKED TO MOVE THE PENTAGON TOWARD THE NEW POSITION AIR FORCE OFFICIALS WEREN'T SO SHY LT GEN DALE THOMPSON VICE COMMANDER OF THE AIR FORCE MATERIEL COMMAND DEFENDED THE IDEA OF CONTINUING THE COMPETITION BETWEEN THE MILITARY AND THE DEFENSE INDUSTRY BETWEEN FISCAL YEAR 1991 AND 1993 HE SAID IN A STATEMENT WE HAVE REALIZED SAVINGS OF MORE THAN 353 MILLION IN COMPETITION BETWEEN THE AIR FORCE AND PRIVATE CONTRACTORS THE TASK FORCE'S RECOMMENDATIONS ARE EXPECTED TO BE ENDORSED BY THE DEFENSE SECRETARY WHO BY LAW MUST REPORT ON THE ISSUE TO CONGRESS BY THE END OF NEXT WEEK BUT THE RECOMMENDATIONS WILL FACE A CRITICAL REVIEW IN CONGRESS WHERE MANY MEMBERS JEALOUSLY PROTECT THE THOUSANDS OF JOBS THAT THE MILITARY DEPOTS REPRESENT IN THEIR DISTRICTS REP GLEN BROWDER THE HEAD OF THE CONGRESSIONAL DEPOT CAUCUS SAID HE HADN'T YET SEEN THE TASK FORCE'S RECOMMENDATIONS BUT PREDICTED THAT THEY WILL HAVE A DIFFICULT ROAD THROUGH CONGRESS WHAT THAT PROPOSAL SOUNDS LIKE IS EXACTLY WHAT THE INDUSTRY HAS BEEN HOLLERING FOR ALL ALONG SAID THE ALABAMA DEMOCRAT WHO SITS ON THE HOUSE ARMED SERVICES COMMITTEE ALSO THE AIR FORCE MAY TAKE THE FIGHT TO CAPITOL HILL BUT THE AIR FORCE'S CREDIBILITY WITH CONGRESS HAS BEEN ERODED BY ITS HANDLING OF THE C17 MILITARY CARGO JET PROGRAM OTHERS PREDICTED THAT CONGRESS WEARY OF THE SQUABBLING BETWEEN THE MILITARY AND THE INDUSTRY ON THE ISSUE WILL ACCEPT ANY SOLUTION ENDORSED BY THE MAJORITY OF BOTH SIDES THE TASK FORCE'S SOLUTION OF RESERVING CORE WORK FOR THE MILITARY AND PUSHING EVERYTHING ELSE INTO THE PRIVATE SECTOR APPEARS TO PASS THAT TEST HOWEVER THAT SOLUTION COULD PROVOKE A NEW CONFLICT BETWEEN THE MILITARY AND INDUSTRY OVER DEFINING CORE ONE NAVY ADMIRAL YESTERDAY SUGGESTED THAT HIS SERVICE WOULD SEEK A FAIRLY ROBUST DEFINITION THAT WOULD GIVE HIS SERVICE AT LEAST 30 TO 40 OF THE MONEY IT SPENDS ON MAINTENANCE AND UPGRADE WORK CURRENTLY THE SERVICES GET ABOUT 70 WITH THE REMAINING 30 GOING TO THE INDUSTRY 9403240106 940324 WHO'S NEWS ITT EXECUTIVES GOT HEFTY BONUSES BASED ON STRONG '93 RESULTS NEW YORK TOP EXECUTIVES OF ITT CORP WHO RECEIVED NO BONUS FOR 1992 WERE PAID HEFTY BONUSES BASED ON IMPROVED 1993 RESULTS THE COMPANY'S PROXY STATEMENT DISCLOSED ITT'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER RAND V ARASKOG RECEIVED A BONUS OF 2584900 FOR 1993 HE HAD RECEIVED A 14 MILLION BONUS TWO YEARS AGO MR ARASKOG'S SALARY LAST YEAR TOTALED 1525000 UP FROM 1462500 A YEAR AGO AND ITT'S COMPENSATION COMMITTEE SAID IT AUTHORIZED A 100000 SALARY INCREASE EFFECTIVE JAN 1 1994 BRINGING HIS ANNUAL SALARY TO 1625000 THE PROXY SAID THE MERIT INCREASE 18 MONTHS AFTER THE LAST SALARY REVIEW WAS EQUAL TO 43 A YEAR AND REFLECTED THE COMMITTEE'S EVALUATION OF HIS PERFORMANCE DURING THE MEASUREMENT PERIOD MR ARASKOG ALSO RECEIVED OTHER ANNUAL COMPENSATION TOTALING 185793 ALSO IN THE LAST YEAR MR ARASKOG REALIZED 58 MILLION FROM EXERCISING OPTIONS ON ITT COMMON SHARES ITT HAS A PRECISE FORMULA FOR CALCULATING BONUS PAYMENTS REFLECTING PERFORMANCE GOALS AND WEIGHTED MEASURES SUCH AS PERSHARE EARNINGS AND RETURN ON EQUITY ITT'S PROXY SAID THE HEFTY BONUSES THIS YEAR REFLECT THE SIGNIFICANT IMPROVEMENT IN PROFITABILITY OVER 1992 RESULTS IN 1993 ITT REPORTED NET INCOME OF 913 MILLION OR 732 A SHARE COMPARED WITH A NET LOSS OF 885 MILLION OR 793 A SHARE IN 1992 THE 1992 YEAR INCLUDED MORE THAN 1 BILLION IN EXTRAORDINARY CHARGES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ITT SHARES GAINED 875 CENTS TO CLOSE AT 86 9403240105 940324 WHO'S NEWS NIKKO SECURITIES NAMES CEO NEW YORK NIKKO SECURITIES CO INTERNATIONAL THE US UNIT OF TOKYOBASED NIKKO SECURITIES CO SAID MASAO EBINA WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR EBINA 52 YEARS OLD PREVIOUSLY GENERAL MANAGER OF THE PARENT COMPANY'S KYOTO AND SENDAI BRANCHES WILL ALSO SERVE AS CHIEF OPERATING OFFICER NIKKO'S AMERICAS GROUP HE SUCCEEDS RYOSUKE SUZUKI 53 WHO WILL BE A SENIOR ADVISER OF TOKYO SECURITIES CO A SECURITIES FIRM IN WHICH NIKKO HOLDS A MINORITY STAKE SEPARATELY MASUMI YAMAGUCHI 58 VICE CHAIRMAN OF NIKKO INTERNATIONAL SINCE 1993 WILL BECOME DEPUTY CHIEF OPERATING OFFICER OF THE PARENT'S CAPITAL MARKETS GROUP IN TOKYO 9403240104 940324 ECONOMY FORD CHRYSLER RAISE SALES ESTIMATES FOR 1994 AMID STRONG PACE FOR MARCH BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT SURGING VEHICLE SALES THIS MONTH HAVE PROMPTED TWO OF THE BIG THREE US AUTO MAKERS TO RAISE THEIR 1994 SALES PROJECTIONS AND LED FORD MOTOR CO TO GIVE A MIDMONTH SALES REPORT TO THE FEDERAL RESERVE BEFORE THIS WEEK'S MEETING AT WHICH THE FED NUDGED UP SHORTTERM INTEREST RATES A CHRYSLER CORP EXECUTIVE SAID YESTERDAY THE COMPANY'S MARCH SALES WILL APPROACH AN ALLTIME RECORD ON THE STRENGTH OF A CONTINUING RECOVERY THE NEWS TRIGGERED A JUMP IN AUTO STOCKS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY CHRYSLER ROSE 75 CENTS A SHARE TO CLOSE AT 58125 FORD MOTOR INCREASED 175 TO CLOSE AT 63375 A SHARE AND GENERAL MOTORS CORP CLIMBED 875 CENTS TO CLOSE AT 6050 A SHARE E THOMAS PAPPERT CHRYSLER'S VICE PRESIDENT FOR SALES SAID YESTERDAY THAT US CAR AND TRUCK SALES FOR THE MONTH WOULD COME CLOSE TO A 16 MILLIONVEHICLE ANNUAL SELLING RATE THAT WOULD BE UP FROM LAST MONTH'S 155 MILLION RATE IN ALL OF 1993 US CONSUMERS PURCHASED 139 MILLION CARS AND TRUCKS AT FORD SALES ARE WELL AHEAD OF PROJECTIONS ONE EXECUTIVE SAID SEPARATELY SPURRING THE COMPANY TO OFFICIALLY CHANGE ITS SALES FORECAST FROM 15 MILLION VEHICLES TO A RANGE OF 15 MILLION TO 155 MILLION CARS AND TRUCKS A GM SPOKESMAN SAID THE COMPANY EXPECTED TO BE PLEASED WITH MARCH NUMBERS BUT DECLINED TO PROVIDE SPECIFICS THE AUTO MAKERS NO LONGER PUBLICLY REPORT SALES AT 10DAY INTERVALS BUT THEY DO BRIEF THE FEDERAL RESERVE ABOUT SALES FORD SAID ITS TREASURER DAVID N MCCAMMON TOLD A FED OFFICIAL EARLIER THIS MONTH THAT THE AUTO MAKER HAD REVISED ITS SALES PROJECTION UPWARD THAT SIGN OF A CONTINUED ROBUST RECOVERY MAY HAVE PLAYED A ROLE IN THE FED'S DECISION TUESDAY TO NUDGE UP SHORTTERM INTEREST RATES IN AN EFFORT TO HEAD OFF INFLATION A FEDERAL RESERVE SPOKESMAN DECLINED TO COMMENT YESTERDAY ON THE MATTER BUT THERE IS LITTLE DOUBT THAT THE AUTO INDUSTRY HAS BEEN LEADING THE RECOVERY AND HAS BEEN STRAINING TO KEEP UP WITH DEMAND RECENTLY FORD CHRYSLER AND GM HAVE MOVED TO MAKE MAJOR CAPACITY INCREASES BUT IN THE MEANTIME SOME ECONOMISTS WORRY THAT TIGHT SUPPLIES COULD INFLATE PRICES EXACTLY WHAT THE FED WANTS TO AVOID FED CHAIRMAN ALAN GREENSPAN IS UNDERSTOOD TO WATCH AUTO SALES AS A MAIN INDICATOR OF ECONOMIC ACTIVITY OFFICIALLY CHRYSLER HAS BEEN PREDICTING 156 MILLION VEHICLES WOULD BE SOLD DURING THE YEAR BUT MR PAPPERT SAID HE BELIEVES VEHICLES ARE SELLING AT AN ALMOST 16 MILLION RATE MR PAPPERT SAID HIS ESTIMATE IS BASED ON CHRYSLER'S STRONG SALES AND INFORMAL CONVERSATIONS WITH DEALERS REPORTING GOOD VOLUME THROUGHOUT THE COUNTRY EVEN IN CALIFORNIA THE AUTO MAKERS DON'T OFFICIALLY REPORT MARCH SALES UNTIL EARLY APRIL MR PAPPERT SAID THAT FOR THE FIRST 10 DAYS OF MARCH CHRYSLER'S MARKET SHARE WAS RUNNING AT 155 UP ONLY MODERATELY FROM 154 IN THE PREVIOUS MONTH BUT THAT STRONG SALES INDUSTRYWIDE WERE DEPLETING THE AUTO MAKER'S INVENTORIES AND SETTING NEW RECORDS MINIVAN SALES FOR THE MONTH WILL BREAK EVERY RECORD WE'VE EVER SET MR PAPPERT SAID IN FEBRUARY THE COMPANY SOLD 46314 MINIVANS BUT IN MARCH MR PAPPERT INDICATED SALES WOULD BE WELL ABOVE 60000 VEHICLES HE ALSO SAID CHRYSLER'S LAUNCH OF THE NEON HAS BEEN GOING WELL AND THE COMPANY WOULD SELL 13000 OF THE SMALL CARS THIS MONTH HE EXPECTS CHRYSLER TO SELL 22000 DODGE INTREPIDS CHRYSLER CONCORDES NEW YORKERS AND OTHER SOCALLED LH SEDANS UP FROM 20100 IN FEBRUARY MR PAPPERT SAID THAT CHRYSLER'S INVENTORIES HAVE DWINDLED AUTO MAKERS TYPICALLY HAVE A 65DAY SUPPLY OF VEHICLES IN THEIR DISTRIBUTION PIPELINE BUT CHRYSLER'S HOTSELLING GRAND CHEROKEE HAS ONLY A 20DAY SUPPLY MR PAPPERT SAID AT TIMES CHRYSLER HAS HAD MORE THAN A 120DAY SUPPLY OF ITS LHS AND NEW YORKER MODELS ON HAND BUT MR PAPPERT SAID THAT THERE WAS NO MORE THAN A 95DAY SUPPLY FOR ANY CAR MODEL SEPARATELY MR PAPPERT SAID CHRYSLER IS CHANGING THE WAY IT STRUCTURES ITS 200 MILLIONAYEAR DEALER INCENTIVE PROGRAM AS PART OF A MAJOR EFFORT TO MAKE BUYING A CAR A PLEASANT EXPERIENCE PREVIOUSLY CHRYSLER MADE INCENTIVE PAYMENTS TO DEALERS BASED ON SALES VOLUME AS WELL AS CUSTOMER SATISFACTION THE NEW GUIDELINES WILL REWARD DEALERS ONLY FOR MEETING CUSTOMER SATISFACTION TARGETS 9403240103 940324 CRAZY EDDIE'S FOUNDER SIGNS OVER 52 MILLION IN STOCK FRAUD CASE NEWARK NJ AP FACED WITH A JUDGE PREPARING TO SENTENCE HIM FOR RACKETEERING AND STOCK FRAUD THE FOUNDER OF THE DEFUNCT CRAZY EDDIE ELECTRONICS CHAIN TURNED OVER FOREIGN BANK ACCOUNTS CONTAINING 52 MILLION SOUGHT BY THE GOVERNMENT EDDIE ANTAR SIGNED OVER THE MONEY TO A COURTAPPOINTED TRUSTEE SENTENCING OF MR ANTAR AND BROTHER MITCHELL WAS ADJOURNED TO APRIL 15 TO ALLOW THE TRUSTEE TIME TO GET THE MONEY EDDIE AND MITCHELL ANTAR WERE CONVICTED IN JULY OF POCKETING NEARLY 80 MILLION BY SELLING CRAZY EDDIE STOCK BOOSTED ARTIFICIALLY IN VALUE THROUGH INVENTORY INFLATION AND OTHER SCHEMES THE MONEY IN THE FOREIGN ACCOUNTS WOULD BE TURNED OVER TO THE SECURITIES AND EXCHANGE COMMISSION WHICH OBTAINED A 73 MILLION JUDGMENT AGAINST MR ANTAR FOR RESTITUTION TO CRAZY EDDIE INVESTORS THE JUDGMENT TOTALS ABOUT 90 MILLION WITH INTEREST IN THE SEPARATE CRIMINAL CASE THE GOVERNMENT HAS BEEN SEEKING A 25YEAR TERM FOR EDDIE ANTAR 9403240101 940324 SPRINT DENIED WORLD CUP LOGO NEW YORK A FEDERAL DISTRICT COURT JUDGE HAS ENJOINED SPRINT CORP FROM USING THE WORLD CUP USA TRADEMARK ON ITS TELEPHONE CALLING CARDS JUDGE JOHN S MARTIN JR IN NEW YORK SAID THAT MASTERCARD INTERNATIONAL INC WHICH BROUGHT THE ACTION AND IS ONE OF 11 WORLD CUP SPONSORS HAD THE EXCLUSIVE RIGHT TO USE THE SOCCER COMPETITION'S TRADEMARK ON CARDBASED PAYMENT AND ACCOUNT ACCESS DEVICES SPRINT OF KANSAS CITY MO HAD ARGUED THAT ITS PREPAID CARDS AREN'T CREDIT DEVICES BUT ARE USED SOLELY TO ACCESS SPRINT SERVICES THE WORLD CUP COMPETITION IS TO BE HELD NATIONWIDE IN JUNE 9403240099 940324 VENEZUELA RESISTANCE EBBS AS EPA SHIFTS AIR POLICY WASHINGTON VENEZUELA SAID IT WOULD DROP A CHALLENGE TO A US CLEANAIR REGULATION AFTER THE US ENVIRONMENTAL PROTECTION AGENCY AGREED TO MODIFY THE RULE THE EPA SAID THE RULE INTENDED TO REDUCE SMOGPRODUCING CHEMICALS WOULD REQUIRE VENEZUELA TO IMPOSE COSTLY CONTROLS ON GASOLINE IT SHIPS TO THE US IT WAS ISSUED IN FINAL FORM IN DECEMBER BUT VENEZUELA CHALLENGED IT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE VENEZUELANS SAID THE RULE DISCRIMINATED AGAINST FOREIGN OIL SUPPLIERS BY IMPOSING A DIFFERENT FORMULA ON THEM THAN ON DOMESTIC US PRODUCERS US OFFICIALS CONCLUDED THE RULE AS WRITTEN PROBABLY WOULD VIOLATE GATT UNDER THE AGREEMENT THE EPA SAID IT WOULD AMEND THE RULE SO VENEZUELA'S OBLIGATIONS ARE CALCULATED IN A WAY SIMILAR TO THAT OF DOMESTIC PRODUCERS THE AGENCY SAID IT WOULD ASK FOR PUBLIC COMMENT ON ITS PROPOSAL THE ENVIRONMENTAL AGENCY SAID THE GATT CHALLENGE IF SUCCESSFUL COULD HAVE REQUIRED THE US TO ALTER THE CLEANAIR REGULATION MORE FUNDAMENTALLY 9403240098 940324 INTERNATIONAL BANESTO HOLDERS TO REQUEST APPROVAL FOR LEGAL ACTION MADRID A GROUP OF SHAREHOLDERS OF BANCO ESPANOL DE CREDITO THE BIG SPANISH BANK THAT WAS SEIZED BY REGULATORS IN DECEMBER WILL REQUEST APPROVAL TO TAKE LEGAL ACTION AGAINST THE BANK'S FORMER CHAIRMAN AND BOARD OF DIRECTORS AT THE BANK'S SHAREHOLDERS MEETING SATURDAY JAIME GUERRA THE LAWYER FOR THE SHAREHOLDERS GROUP SAID IT'S STILL UNCLEAR WHETHER HOLDERS WILL BE ASKED SATURDAY TO BRING A CRIMINAL SUIT OR A CIVIL LIABILITY SUIT AGAINST THE FORMER BOARD OF BANESTO FOR ALLEGEDLY PROVIDING MISLEADING INFORMATION ABOUT THE BANK'S 95BILLIONPESETA 6856 MILLION CAPITALRAISING EXERCISE LAST YEAR IN A CRIMINAL SUIT BOARD MEMBERS AND FORMER BANESTO CHAIRMAN MARIO CONDE WOULD FACE POSSIBLE JAIL SENTENCES IF FOUND GUILTY OF WRONGDOING IN A CIVIL SUIT THEY WOULD BE REQUIRED TO RESPOND TO FINANCIAL CLAIMS WITH THEIR PERSONAL ASSETS MR CONDE IS UNLIKELY TO APPEAR AT THE MEETING NOR WOULD HE RESPOND TO THE THREAT OF A LEGAL SUIT UNTIL IT BECOMES A REALITY A PERSON CLOSE TO HIM SAID MR CONDE WASN'T AVAILABLE TO COMMENT 9403240097 940324 WHO'S NEWS MALLINCKRODT GROUP INC MALLINCKRODT GROUP INC ST LOUIS MICHAEL A ROCCA 49 YEARS OLD FORMERLY VICE PRESIDENT AND TREASURER OF HONEYWELL INC WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF HUMAN AND ANIMAL HEALTHCARE PRODUCTS AND SPECIALTY CHEMICALS 9403240096 940324 TELECOMMUNICATIONS CONGRESS MAY ASK COMPANIES TO WIRE SCHOOLS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATION'S SCHOOLS MAY HITCH A CHEAP RIDE ON THE INFORMATION SUPERHIGHWAY BROAD TELECOMMUNICATIONS LEGISLATION MOVING THROUGH CONGRESS WOULD REQUIRE COMPANIES TO PROVIDE INEXPENSIVE COMPUTER LINKUPS TO SCHOOLS NONPROFIT MEDICAL FACILITIES LIBRARIES AND SOME OTHER PUBLIC BUILDINGS THE IDEA IS SUPPORTED BY PEOPLE RANGING FROM VICE PRESIDENT AL GORE TO FILMMAKER GEORGE LUCAS REP EDWARD MARKEY CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS SUBCOMMITTEE ENVISIONS CONNECTING STUDENTS' HOME COMPUTERS TO THEIR SCHOOLS AND LINKING THE SCHOOLS TO THE LIBRARY OF CONGRESS THE NEW YORK PUBLIC LIBRARY AND OTHER DISTANT DATABASES THE MASSACHUSETTS DEMOCRAT A LEADING SPONSOR OF THE LEGISLATION TALKS OF CHARGING STUDENTS ONLY A PENNY A MINUTE TO USE SUCH SERVICES THE THOUGHT OF CHEAP HOOKUPS AND ESPECIALLY CUTRATE OR FREE MONTHLY SERVICE UNSETTLES MOST TELEPHONE AND CABLE TELEVISION COMPANIES A SURVEY BY REP MARKEY OF 20 COMPANIES EARLY THIS YEAR TURNED UP ONLY THREE BELL ATLANTIC CORP TELECOMMUNICATIONS INC AND COX CABLE COMMUNICATIONS THAT WERE WILLING TO PAY FOR HIGHCAPACITY LINKS TO ELEMENTARY AND SECONDARY SCHOOLS IN THEIR TERRITORIES THE REST DIDN'T SAY NO BUT THEY ALSO DIDN'T SAY YES BELLSOUTH CORP TOLD MR MARKEY THAT REQUIRING FREE LINKS TO SCHOOLS WOULD BURDEN THE ATLANTABASED BELL COMPANY WITH A COMPETITIVE DISADVANTAGE IN JANUARY VICE PRESIDENT GORE SHOOK UP THE COMMUNICATIONS INDUSTRY BY CHALLENGING IT TO CONNECT ALL OF OUR CLASSROOMS ALL OF OUR LIBRARIES AND ALL OF OUR HOSPITALS AND CLINICS BY THE YEAR 2000 THE NEXT DAY BELLSOUTH AMENDED ITS RESPONSE TO MR MARKEY'S SURVEY ON RECONSIDERATION IT SUGGESTED CONTINUING EFFORTS TO WORK WITH STATE AND LOCAL OFFICIALS TO DETERMINE TECHNOLOGICAL SOLUTIONS AND BUSINESS ARRANGEMENTS THAT ARE MORE CUSTOMIZED TO THE INDIVIDUAL NEEDS OF EACH OF THE SCHOOLS OTHER COMPANIES ALSO HAVE CHANGED THEIR TUNE GIVING AWAY SERVICE TO SCHOOLS OR ANYONE ELSE WHILE SUPERFICIALLY ATTRACTIVE IS NOT IN THE LONGTERM PUBLIC INTEREST RESPONDED AMERITECH THE CHICAGOBASED BABY BELL TO MR MARKEY'S SURVEY IN TESTIMONY EARLIER THIS MONTH BEFORE MR MARKEY'S PANEL RICHARD NOTEBAERT THE COMPANY'S PRESIDENT SOFTENED THAT STANCE AMERITECH HE SAID HAS COMMITTED TO CONNECT ELEMENTARY AND SECONDARY SCHOOLS TO THIS ADVANCED NETWORK BEFORE THE END OF THE DECADE MR LUCAS THE MOVIE MAKER HAS BEEN PUSHING FOR FREE INFORMATIONHIGHWAY CONNECTIONS FOR STUDENTS THROUGH HIS GEORGE LUCAS EDUCATIONAL FOUNDATION AT SOME POINT I HOPE WE DO THE RIGHT THING SAYS MR LUCAS OBVIOUSLY THIS IS A BIG ISSUE AND PERSONAL AND CORPORATE GREED HAVE TO BE PUT ASIDE A LITTLE BIT TO FOCUS ON WHAT IS BEST FOR OUR COUNTRY WHILE THE INDUSTRY IS SOFTENING ITS STANCE ON BUILDING THE LINKS BETWEEN SCHOOLS AND COMPUTER NETWORKS THE ISSUE OF PAYING FOR MONTHLY SERVICE IS A DIFFERENT MATTER EVEN BELL ATLANTIC TCI AND COX HAVEN'T PROMISED TO DO THAT THOUGH MANY COMPANIES SUGGEST THAT SCHOOLS ARE LIKELY TO GET DISCOUNTS RONALD STOWE HEAD OF PACIFIC TELESIS GROUP'S WASHINGTON OFFICE SUGGESTS THAT COMPANIES MIGHT WORK TOGETHER TO PROVIDE PACKAGES OF EQUIPMENT AND SERVICES AND TRAIN TEACHERS AND STUDENTS HOW TO USE THEM IT IS NOT ENOUGH JUST TO OFFER FREE CONNECTIONS TO EVERY SCHOOL HE SAYS SCHOOLS NEED HARDWARE SOFTWARE AND TRAINING MEANWHILE THE FCC'S NEW CHAIRMAN REED HUNDT IS LIKELY TO PUT CONTINUED PRESSURE ON THE COMPANIES MR HUNDT WHO TAUGHT SEVENTH GRADE IN AN INNERCITY SCHOOL IN PHILADELPHIA BEFORE ENROLLING IN LAW SCHOOL RECALLS HOW PAINFUL IT WAS TO HAVE ONLY 35 TEXTBOOKS FOR FIVE CLASSES OF 35 EACH IF STUDENTS COULD BE CONNECTED TO NETWORKS HE SAYS IT WOULD LET THEM ESCAPE THE CLASSROOM ESCAPE THE CONFINES OF THEIR NEIGHBORHOODS 9403240095 940324 CLEVELAND FED BANK RESPONDS TO PRESSURE TO BE MORE EFFICIENT BY LINDLEY H CLARK JR STAFF REPORTER OF THE WALL STREET JOURNAL CONGRESSIONAL PRESSURE ON THE FEDERAL RESERVE SYSTEM TO BECOME MORE EFFICIENT IS BEGINNING TO HAVE EFFECTS SOME OF THE FED BANKS PARTICULARLY THE ONE IN CLEVELAND ARE STARTING TO STREAMLINE THEMSELVES THE 12 REGIONAL BANKS OF THE SYSTEM ARE CHARGED WITH CLEARING CHECKS MOVING MONEY AND HELPING THE SEVENMEMBER FEDERAL RESERVE BOARD IN WASHINGTON DETERMINE MONETARY POLICY HOUSE BANKING COMMITTEE CHAIRMAN HENRY B GONZALEZ WANTS MORE OF THE FED'S CHORES TO BE TURNED OVER TO COMMERCIAL BANKS WHICH HE CONSIDERS MORE EFFICIENT ALREADY COMMERCIAL INSTITUTIONS ARE PERFORMING PART OF THE CHECKCLEARING FUNCTION THAT WAS CONSIDERED THE SOLE DOMAIN OF THE FED THE TREASURY DEPARTMENT MEANWHILE HAS PROPOSED LEGISLATION THAT WOULD STRIP THE FED OF MANY OF ITS BANK REGULATORY DUTIES AND GIVE THE TASKS TO A NEW FEDERAL AGENCY IF REP GONZALEZ AND THE TREASURY DEPARTMENT HAVE THEIR WAY THE FED BANKS WOULD HAVE A LOT LESS TO DO IF WE DON'T HAVE A HAND IN BANK OPERATIONS AND REGULATION CONTENDS JERRY L JORDAN PRESIDENT OF THE CLEVELAND FEDERAL RESERVE BANK WE CAN'T DO AN EFFECTIVE JOB IN MONETARY POLICY SO IT IS THAT MR JORDAN IS PRESSING A COUNTERATTACK AND TRYING TO MAKE HIS BANK OPERATE MORE LIKE A COMMERCIAL INSTITUTION THE CLEVELAND BANK HAS INTRODUCED INCENTIVE PROGRAMS FOR EMPLOYEES AND TRAINING PROGRAMS TO INCREASE WORKER EFFICIENCY WHERE THE BANK NOW SHIPS CRATES OF PAPER IN SUPPORT OF ITS CHECKCLEARING FUNCTION IT HOPES SOON TO BE SENDING THE INFORMATION ELECTRONICALLY THEN THERE ARE THE LAYOFFS THE BANK HAS ABOUT 1400 EMPLOYEES AND THOUGH MR JORDAN WON'T SAY HOW MUCH THE PAYROLL HAS BEEN CUT HE POINTS TO ATTRITION AND LAYOFFS OF ADMINISTRATIVE STAFF MANAGEMENT IS LEANER TOO WHEN MR JORDAN TOOK OFFICE 18 MONTHS AGO THE CLEVELAND FED HAD 62 OFFICERS NOW THERE ARE 48 THE FED REGIONAL BANKS ARE TECHNICALLY OWED BY THE BANKS IN THEIR DISTRICTS ALTHOUGH IN EFFECT THE PROFITS GO TO THE TREASURY TRYING TO INCREASE EFFICIENCY TO COMPETE WITH COMMERCIAL BANKS FOR DOLLARS HAS MEANT DRAWING ON THE EXPERTISE OF THE BUSINESS EXECUTIVES WHO SERVE AS THE BANK'S DIRECTORS DIRECTORSHIPS AT SOME FED BANKS HAD BEEN SEEN AS LARGELY HONORARY POSITIONS SO MUCH SO THAT THE FEDERAL RESERVE BOARD STAFF IN WASHINGTON FELT IT HAD TO POLICE THE REGIONAL BANKS TAKING ON A ROLE IT FELT THE DIRECTORS WEREN'T HANDLING PROPERLY MR JORDAN BOASTS OF INVOLVING DIRECTORS MORE IN CLEVELAND OPERATIONS THE EFFORTS HAVE PAID OFF IN CLEVELAND SEVENTEEN YEARS AGO THE FEDERAL RESERVE SYSTEM RANKED THE CLEVELAND BANK DEAD LAST AMONG THE 12 REGIONAL BANKS IN EFFICIENCY LAST YEAR IT RANKED CLEVELAND FIRST OTHER FED BANKS ARE ALSO BEGINNING TO RESPOND TO COMPETITIVE PRESSURES SWEEPING BANKING THE FED BANK IN RICHMOND VA IS ONE JIMMIE MONHOLLON FIRST VICE PRESIDENT SAYS HIS BANK WILL LAUNCH AN EARLYRETIREMENT PROGRAM LATER THIS YEAR AND HE SAYS MANY OF THESE PEOPLE WON'T BE REPLACED HE ADDS WE'RE AUTOMATING EVERYTHING THAT WE CAN AUTOMATE 9403240094 940324 MARKETING & MEDIA NEWS CORP'S FOX JOINS NFL IN EUROPEAN VENTURE NEW YORK NEWS CORP'S FOX INC SIGNED ON AS A PARTNER IN THE NATIONAL FOOTBALL LEAGUE'S PLAN TO REVIVE WORLD LEAGUE FOOTBALL IN EUROPE IN APRIL 1995 THE TWO ENTITIES WILL BE EQUAL PARTNERS IN THE VENTURE TERMS OF THE DEAL WEREN'T DISCLOSED BUT SOURCES FAMILIAR WITH THE PROJECT SAID THE INITIAL INVESTMENT WILL BE ABOUT 40 MILLION TO 50 MILLION THE NEW WORLD LEAGUE WILL BE COMPRISED OF SIX EUROPEAN TEAMS INCLUDING THE LONDON MONARCHS BARCELONA DRAGONS AND FRANKFURT GALAXY THE THREE WERE PART OF THE ORIGINAL WORLD LEAGUE WHICH PLAYED IN 1991 AND 1992 AN ADDITIONAL THREE TEAMS WILL BE CHOSEN FROM AMONG SEVERAL EUROPEAN CITIES THE ORIGINAL WORLD LEAGUE INCLUDED SEVEN NORTH AMERICAN TEAMS WHICH PROVED TO BE THE LEAGUE'S DOWNFALL AMERICAN VIEWERS WEREN'T INTERESTED IN THE SPRING FOOTBALL GAMES ALTHOUGH EUROPEANS WERE THE DEAL IS THE SECOND MAJOR FOOTBALL PLAY FOR FOX IN DECEMBER FOX'S BROADCASTING NETWORK PAID 156 BILLION FOR RIGHTS TO BROADCAST THE NFL'S NATIONAL FOOTBALL CONFERENCE GAMES FOR FOUR YEARS THE TELEVISION PACKAGE FOR THE NEW LEAGUE HASN'T BEEN DETERMINED BUT IT IS EXPECTED THAT AT LEAST SOME OF THE GAMES WILL APPEAR ON NEWS CORP'S BSKYB SATELLITE TELEVISION SERVICE IN BRITAIN 9403240093 940324 WHO'S NEWS SPECTRUM PRESIDENT QUITS TEMPORARILY TO CLEAR HIS NAME' AMID INVESTIGATION BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SPECTRUM INFORMATION TECHNOLOGIES INC SAID PRESIDENT PETER T CASERTA HAS TEMPORARILY STEPPED ASIDE TO CLEAR HIS NAME ONE DAY AFTER FEDERAL INVESTIGATORS RAIDED HIS FORMER FINANCIAL SERVICES FIRM SPECTRUM'S NEW CHAIRMAN EDWARD MASKALY SAID THE ARREST TUESDAY OF FIVE EMPLOYEES OF PARADIGM GROUP INC INCLUDING THE FIRM'S PRESIDENT ON WIRE AND MAIL FRAUD CHARGES LEFT MR CASERTA WITH LITTLE CHOICE BUT TO TAKE A LEAVE OF ABSENCE TO REBUT ALLEGATIONS ABOUT PARADIGM AND HIS ROLE IN IT MEANWHILE MR CASERTA'S CHILDREN WILL NO LONGER BE WORKING FOR THE SMALL WIRELESS COMPANY DIANA BOHRMAN MR CASERTA'S DAUGHTER WILL SOON TENDER HER RESIGNATION AS SPECTRUM'S VICE PRESIDENT OF TECHNOLOGY AND PETER CASERTA II WHO HAD BEEN A VICE PRESIDENT LEFT RECENTLY TO ATTEND GRADUATE SCHOOL MR MASKALY SAID MR MASKALY APPEARED TO DISTANCE HIMSELF AND SPECTRUM FROM MR CASERTA ASSERTING THAT FEDERAL POSTAL INSPECTORS DIDN'T SEIZE ANY SPECTRUM RECORDS AND THAT CONTRARY TO A STATEMENT IN THE RELATED FEDERAL COMPLAINT HE ISN'T A RELATIVE OF MR CASERTA BUT MESSRS MASKALY AND CASERTA HAVE HAD CLOSE BUSINESS TIES FOR YEARS MR MASKALY A FORMER CHIEF FINANCIAL OFFICER OF SHOE AND HANDBAG COMPANY JASMINE LTD WAS NAMED CHAIRMAN OF SPECTRUM EARLIER THIS WEEK MR CASERTA HAD TAKEN THAT POST AFTER FORMER APPLE COMPUTER INC CHAIRMAN JOHN SCULLEY LEFT IN A DISPUTE LAST MONTH MR MASKALY HAS BEEN A SPECTRUM BOARD MEMBER FOR TWO YEARS JOINING AT MR CASERTA'S INVITATION IN THE MID1980S WHILE PRESIDENT OF A LENDING UNIT OF NATIONAL WESTMINSTER BANK MR MASKALY ARRANGED A 5 MILLION LOAN FOR MR CASERTA'S FORMER COMPANY INTERGLOBAL TECHNICAL RESOURCES A RENTANENGINEER FIRM AS FEDERAL INVESTIGATORS CONTINUE THEIR INVESTIGATION OF MR CASERTA MR MASKALY COULD FIND HIMSELF SPENDING AN INCREASING AMOUNT OF TIME ANSWERING FOR HIS INVOLVEMENT IN A FINANCIAL SCHEME THAT FEDERAL PROSECUTORS SAY DEFRAUDED NUMEROUS SMALL BUSINESSES THE COMPLAINT ACCUSES THE FIVE EMPLOYEES AND PARADIGM OF RUNNING A BOILER ROOM OPERATION THAT ENTICED SMALL BUSINESSES INTO PAYING FAT UPFRONT FEES FOR FINANCIAL HELP THAT NEVER MATERIALIZED MR MASKALY WAS MENTIONED AS ONE INVESTOR WHO WAS ALLEGEDLY POISED TO LEND ONE OF THE VICTIM COMPANIES CAPITAL MR MASKALY IS LISTED AMONG THE DISTINGUISHED BOARD OF ADVISERS OF CASERTA GROUP THE FORERUNNER OF PARADIGM THE ADVISORY BOARD WAS SET UP TO HELP CASERTA GROUP/PARADIGM DECIDE WHETHER CERTAIN SMALLBUSINESS CLIENTS OF THE COMPANY SHOULD GET INVESTMENT BANKING HELP INCLUDING EXPANSION CAPITAL TODAY MANY OF THESE SMALLBUSINESS CUSTOMERS ARE WITNESSES FOR THE PROSECUTION OF THE FEDERAL COMPLAINT AGAINST CASERTA GROUP/PARADIGM AND THE FIVE PEOPLE WHO WERE ARRESTED THE ADVISORY BOARD ALSO INCLUDED FORMER ASTRONAUT THOMAS STAFFORD AC DALTON A FORMER YOUNG & RUBICAM EXECUTIVE AND FORMER MCGRAWHILL INC GROUP PRESIDENT JOSEPH H ALLEN MR MASKALY SAID HIS INVOLVEMENT WITH CASERTA GROUP NEVER WENT BEYOND ONE MEETING WITH THE COMPANY THERE WAS NO FINANCIAL COMPENSATION TO ME HE SAID STILL HE MAY HAVE A HARD TIME EXTRICATING SPECTRUM FROM CASERTA GROUP/PARADIGM'S PROBLEMS SPECTRUM AND PARADIGM HAVE CLOSE TIES THE COMPANIES SHARE THE SAME HEADQUARTERS BUILDING AND SOME OF THE SAME PERSONNEL PARADIGM HAD DONE BUSINESS AS CASERTA GROUP UNTIL JANUARY WHEN MR CASERTA TRANSFERRED THE COMPANY TO HIS SONINLAW JOHN BOHRMAN A FORMER SPECTRUM DIRECTOR AND DIANA'S HUSBAND MR BOHRMAN WAS ONE OF THOSE ARRESTED ON TUESDAY ALONG WITH HOWARD SCHOR A PARADIGM EXECUTIVE AND SPECTRUM VICE PRESIDENT 9403240092 940324 MARKETING & MEDIA FIDELITY FEDERATED AREN'T ENTHUSED WITH MACY PLAN BY LAURA JERESKI AND PATRICK M REILLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK RH MACY & CO UNVEILED THE OUTLINE OF ITS REORGANIZATION PROPOSAL TO CREDITORS YESTERDAY AND WAS GREETED COLDLY BY TWO POWERFUL CREDITORS FIDELITY INVESTMENTS AND UNWANTED SUITOR FEDERATED DEPARTMENT STORES INC BECAUSE FIDELITY OWNS SUFFICIENT DEBT TO BLOCK ANY MACY OVERHAUL IT DOESN'T LIKE MACY'S OUTLINE IS LIKELY TO BE ONLY THE FIRST STEP IN LENGTHY NEGOTIATIONS ALSO FEDERATED SHOWS NO SIGN OF GOING AWAY QUIETLY EVEN THOUGH MACY PROPOSED TO PAY OFF ITS CLAIM IN FULL WE ARE NOT SCARED OFF SAID ONE PERSON CLOSE TO CINCINNATIBASED FEDERATED WHICH HAS BEEN SEEKING TO MERGE WITH MACY SINCE EARLY JANUARY MACY SAID CREDITORS WOULD GET CASH AND SECURITIES VALUED AT 36 BILLION UNDER ITS PLAN MACY ALSO PROPOSED TO DISTRIBUTE 500 MILLION OF SECURITIES IN JULY 1997 IF THE COMPANY MEETS OPTIMISTIC PROJECTIONS OF HOW ITS NEW STOCK PERFORMS FEDERATED EXECUTIVES DECLINED TO COMMENT BECAUSE ALL THE PARTIES WERE OBLIGED TO SIGN A CONFIDENTIALITY AGREEMENT BEFORE BEING ALLOWED INTO YESTERDAY'S CLOSEDDOOR MEETING WITH MACY CREDITORS FEDERATED SAID ONLY THAT IT IS STUDYING MACY'S PLAN AND MAPPING OUT ITS NEXT STEPS THE NEW YORK RETAILER HAS BEEN IN CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS SINCE JANUARY 1992 UNDER MACY'S PLAN THE COMPANY WOULD CUT ITS DEBT TO 2 BILLION FROM THE 6 BILLION CURRENTLY OWED TO CREDITORS UNTIL RECENTLY BLACKSTONE GROUP WHICH HAS BEEN ADVISING MACY HAD URGED THE RETAILER TO WIND UP WITH ABOUT 12 BILLION IN DEBT THE PROVISIONS OF YESTERDAY'S PROPOSAL REFLECT A COMPROMISE REACHED BY THE MACY BOARD TUESDAY WHICH MACY HOPES WILL INCREASE ITS PLAN'S APPEAL TO CREDITORS CREDITORS WILL HAVE TO VOTE ON A PLAN OF REORGANIZATION BEFORE THE COMPANY CAN EMERGE FROM BANKRUPTCYLAW PROTECTION WHICH IT EXPECTS TO DO IN JANUARY 1995 TO US JANUARY 1995 IS AN EXPEDITED NEGOTIATION SAID MYRON E ULLMAN III CHAIRMAN OF MACY IN AN INTERVIEW FOLLOWING THE 80MINUTE CLOSEDDOOR SESSION SOME CREDITORS EMERGED FROM THE MEETING SOUNDING RELIEVED ABOUT MACY'S PROPOSAL I WAS EXPECTING TO BE BEATEN OVER THE HEAD SAID CHARLES LEEDS OF OMEGA ADVISERS A HEDGE FUND THAT OWNS ABOUT 40 MILLION OF MACY SENIOR SUBORDINATED BONDS I THOUGHT IT WAS VERY CONSTRUCTIVE AND A GOOD STARTING POINT HE SAID BONDHOLDERS AS A GROUP WOULD GET ABOUT 23 CENTS ON THE DOLLAR HOWEVER THE SENIOR BONDS THAT ARE DUE IN 1998 COULD DO FAR BETTER IN TRADING YESTERDAY THOSE BONDS CLOSED AT 49 CENTS ON THE DOLLAR OR 490 FOR EVERY 1000 FACE AMOUNT OF BONDS UP FIVE POINTS THE BONDS DUE IN 2001 CLOSED AT 18 AND THE ZERO COUPON BONDS DUE IN 2006 CLOSED UNCHANGED AT 4 1/2 THE PROPOSAL ALREADY HAS DRAWN FIRE FROM MACY'S POWERFUL SENIOR CREDITOR BOSTON'S FIDELITY INVESTMENTS THAT IS BECAUSE SENIOR BANK CREDITORS WHO ARE OWED 15 BILLION WOULD RECEIVE LITTLE INTEREST ON THEIR CLAIMS IN PARTICULAR FIDELITY WHICH OWNS A PORTION OF THREE BANK CLAIMS WOULD RECEIVE ABOUT 105 CENTS ON THE DOLLAR THOUGH FIDELITY PAID ABOUT 70 CENTS ON THE DOLLAR FOR ITS POSITION ITS ANNUALIZED RETURNS WON'T BE IMPRESSIVE BECAUSE THE DEBT WAS BOUGHT SOME TIME AGO FIDELITY SAID YESTERDAY THAT THE PLAN OF REORGANIZATION WAS NOT THE ONE WHICH FIDELITY HAD NEGOTIATED AND AGREED TO WITH THE PLANOFREORGANIZATION TEAM FROM MACY BUT IT WOULD CONTINUE TO WORK WITH MEDIATOR CYRUS R VANCE 9403240091 940324 MARKETSCAN HOW COUNTRY'S BIGGEST BRANDS ARE FARING AT THE SUPERMARKET BY KATHLEEN DEVENY STAFF REPORTER OF THE WALL STREET JOURNAL BIG BRANDS HAVE NEVER SEEMED MORE EMBATTLED SALES OF EVEN THE MOST VENERABLE ONES SUFFERED DURING THE PROLONGED ECONOMIC SLUMP WHEN PRICE BECAME CONSUMERS' PASSION AND THE CHALLENGE FROM CHEAPER PRIVATELABEL RIVALS MOUNTED YET MANY OF THE NATION'S BIGGEST BRANDS PERFORMED SURPRISINGLY WELL LAST YEAR ACCORDING TO INFORMATION RESOURCES INC SUPERMARKET SALES OF SIX OF THE 10 LARGEST SUPERMARKET BRANDS FARED BETTER IN 1993 THAN THEY HAD THE YEAR BEFORE EITHER POSTING GAINS OR SIGNIFICANTLY SLOWING DECLINES AMONG THE STRONGEST PERFORMERS CAMPBELL'S OSCAR MAYER AND TROPICANA THE IMPROVING FORTUNES OF THESE BILLIONAIRE BRANDS INDICATE THAT THE DEFENSIVE MANEUVERS OF CONSUMERPRODUCTS MARKETERS ARE BEGINNING TO PAY OFF SOME COMPANIES ARE INCREASING SPENDING ON ADVERTISING AND MARKETING AFTER YEARS OF PENNY PINCHING OTHERS ARE TINKERING WITH THEIR PRODUCT LINES ADDING SPOUTS TO ORANGE JUICE CONTAINERS OR MAKING BIGGER JUICIER HOT DOGS IN AN EFFORT TO GAIN AN EDGE OVER PRIVATELABEL RIVALS MANY COMPANIES HAVE ALSO CUT THE PRICES OF THEIR FLAGSHIP BRANDS BIG BRANDS HAVE BATTLED BACK SAYS JOHN MCMILLIN A FOOD ANALYST WITH PRUDENTIAL SECURITIES INC THERE IS A GREATER SENSE OF REALISM ON THE PART OF MANAGERS OF THE BIG BRANDS THAT YOU CAN'T OVERPRICE YOUR PRODUCTS MR MCMILLIN IS QUICK TO ADD THOUGH THAT THE BATTLE FOR CONSUMERS' LOYALTY IS FAR FROM OVER WHILE THE MOMENTUM OF STORE BRANDS HAS SLOWED FROM THE BOOM YEARS BETWEEN 1988 AND 1992 PRIVATELABEL GOODS CONTINUE TO EKE OUT INCREASES IN MARKET SHARE AND SALES OF PRIVATELABEL PRODUCTS CONTINUE TO RISE IN CATEGORIES THAT WERE ONCE CONSIDERED BASTIONS OF BRAND LOYALTY SUCH AS COLD REMEDIES AND FEMININEPROTECTION PRODUCTS CERTAINLY NOT ALL OF THE BIGGEST BRANDS FARED WELL LAST YEAR SUPERMARKET SALES OF MARLBORO CIGARETTES DECLINED MORE STEEPLY THAN THEY HAD IN THE PREVIOUS PERIOD LARGELY BECAUSE OF PRICE CUTS AND THE FACT THAT CONSUMERS ARE NOW MORE LIKELY TO BUY SINGLE CIGARETTE PACKS IN CONVENIENCE STORES THAN EXPENSIVE CARTONS IN GROCERY STORES SALES OF ANHEUSERBUSCH COS' BUDWEISER BEER ALSO TOOK A TURN FOR THE WORSE AS MAINSTREAM COMPETITORS CUT PRICES AND CONSUMERS BOUGHT MORE FANCY BEERS FROM REGIONAL BREWERIES THE BIG MARKETERS THEMSELVES ARE LARGELY TO BLAME FOR THEIR PREDICAMENT IN RECENT YEARS THROUGHOUT THE 1980S THEY KEPT THEIR REVENUE UP DESPITE SLOW POPULATION GROWTH BY STEADILY RAISING PRICES CONSUMERS PAID FOR A WHILE BUT DURING THE RECESSION MANY REALIZED THEY COULD MAKE DO WITH LESS OR SIMPLY BUY CHEAPER STOREBRAND ALTERNATIVES NOW MANY TOP MARKETERS SAY THEY HAVE LEARNED SOME HARD LESSONS WE'VE BEEN BURNED BY TAKING TOO MANY PRICE INCREASES CONCEDES ROB HAWTHORNE CHIEF OPERATING OFFICER OF PILLSBURY CO A SUBSIDIARY OF GRAND METROPOLITAN PLC THE PILLSBURY BRAND REGISTERED A SALES DECLINE OF 18 IN 1993 AND DROPPED BELOW THE 1 BILLION MARK WE'RE MUCH MORE MINDFUL OF PRICES NOW HE SAYS PILLSBURY ALSO RECENTLY IMPROVED SUCH PRODUCTS AS ITS BUNDT CAKE MIXES INCLUDING MORE FUDGE WITH THE TUNNEL OF FUDGE FLAVOR AND REDUCING THE NUMBER OF STEPS IN THE RECIPE TO THREE FROM FIVE MANAGERS AT PHILIP MORRIS COS' KRAFT GENERAL FOODS UNIT SEEM SIMILARLY CHASTENED A FEW YEARS AGO KRAFT SINGLES CHEESES WERE ABOUT 50 MORE EXPENSIVE THAN PRIVATELABEL RIVALS TODAY THEY SELL FOR ABOUT 35 MORE THE COMPANY HAS ALSO ADDED SUCH VARIETIES AS SWISS AND CHEDDAR AND BEGUN PUSHING MORE CONTEMPORARY USES FOR THE PRODUCT SUCH AS MICROWAVE QUESADILLAS AS A RESULT UNIT SALES OF KRAFT SINGLES CHEESES EDGED UP SLIGHTLY DURING THE 52 WEEKS ENDED OCT 10 1993 AFTER FALLING DURING THE PREVIOUS YEAR OSCAR MAYER MEANWHILE HAS FOCUSED ITS EFFORTS MORE TIGHTLY ON ITS CORE PREPARED MEAT BUSINESS SELLING A SEAFOOD BUSINESS AND DISCONTINUING SEVERAL LINES SUCH AS ITS OSCAR MAYER ZAPPETITES FROZEN SNACKS THE COMPANY IS ALSO TRYING TO COOK UP NEW PRODUCTS THAT WILL MAKE CONSUMERS FEEL THAT ITS MEAT PRODUCTS ARE WORTH THE PRICE FOR EXAMPLE THE COMPANY HAS MADE ITS FLAGSHIP BACON PRODUCT LEANER AND LAUNCHED A BIGGER WIENER CALLED THE BIG & JUICY THERE ARE LESS EXPENSIVE ALTERNATIVES TO EVERY PRODUCT WE MAKE SAYS BOB ECKERT PRESIDENT OF OSCAR MAYER SO WE HAVE TO ADD OTHER KINDS OF VALUE PRICE HASN'T BEEN THE PRIMARY FOCUS FOR PEPSICO INC'S FLAGSHIP SOFT DRINK COMPETITION BETWEEN COKE AND PEPSI HAS KEPT SODA PRICES LOW FOR YEARS TWO LITERS OF PEPSI NOW COST ABOUT 99 CENTS ABOUT THE SAME AS A DECADE AGO BUT THE COMPANY HAS RETURNED TO THE BRAND'S TRADITIONAL ADVERTISING POSITIONING AS THE CHOICE OF A YOUNGER GENERATION AND FOCUSED ON SUCH PACKAGING INNOVATIONS AS THE EASIERTOGUZZLE BIG SLAM BOTTLE AND CUBESHAPED CASES OF SOFT DRINK CANS THAT ARE MEANT TO FIT INTO REFRIGERATORS MORE EASILY ONE OF THE GOOD THINGS TO COME OUT OF THIS DIFFICULT PERIOD IS THAT WE'RE GEARED UP TO DELIVER VALUE BIG TIME SAYS JEFF CAMPBELL SENIOR VICE PRESIDENT OF BRAND DEVELOPMENT FOR PEPSICOLA CO IF THE ECONOMY IMPROVES AND SPRING EVER COMES WE'LL BE SET 9403240090 940324 WHO'S NEWS SIERRA PACIFIC RESOURCES CO SIERRA PACIFIC RESOURCES CO RENO NEV MALYN K MALQUIST 41 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER A POST THAT HAS BEEN VACANT SINCE DECEMBER 1992 HE WAS PREVIOUSLY VICE PRESIDENT OF FINANCE AND TREASURER FOR SAN DIEGO GAS & ELECTRIC CO SIERRA PACIFIC IS A UTILITY HOLDING COMPANY 9403240088 940324 FLOW INTERNATIONAL ACQUISITION WASHINGTON THE JUSTICE DEPARTMENT SAID IT INTENDS TO FILE SUIT TO BLOCK THE ACQUISITION BY FLOW INTERNATIONAL CORP OF INGERSOLLRAND CO'S WATERJET CUTTING SYSTEMS DIVISION THE DEPARTMENT'S ANTITRUST DIVISION SAID THE COMPANIES ARE THE TWO DOMINANT MANUFACTURERS IN THE 34 MILLIONAYEAR WATERJET CUTTINGEQUIPMENT INDUSTRY ANNE BINGAMAN ASSISTANT ATTORNEY GENERAL HEADING THE ANTITRUST DIVISION SAID THE MERGER WOULD CREATE A COMPANY THAT CONTROLLED ALMOST 90 OF ALL WATERJETPUMP SALES IN THE US FLOW IS BASED IN KENT WASH INGERSOLL IS BASED IN WOODCLIFF LAKE NJ 9403240087 940324 WHO'S NEWS COMMNET CELLULAR INC COMMNET CELLULAR INC ENGLEWOOD COLO DORON LURIE SENIOR VICE PRESIDENT AT THIS PROVIDER OF RURAL CELLULARPHONE SERVICE WAS NAMED TO THE ADDITIONAL POST OF CHIEF OPERATING OFFICER A NEW POSITION MR LURIE IS 34 YEARS OLD 9403240086 940324 CREDIT MARKETS TREASURY PRICES DECLINE AS SENTIMENT EMERGES THAT FED WILL RAISE RATES AGAIN AT SOME POINT BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRICES OF US TREASURY SECURITIES FELL YESTERDAY AS THE MARKET FAILED TO SUSTAIN THE GAINS POSTED TUESDAY FOLLOWING THE FEDERAL RESERVE'S DECISION TO RAISE SHORTTERM INTEREST RATES THE FED MEANWHILE APPEARED TO CONFIRM THROUGH ITS ROUTINE OPENMARKET INTERVENTION THAT THE NEW TARGET FOR THE FEDERALFUNDS RATE IS 35 THE FEDERALFUNDS RATE IS THE RATE ON OVERNIGHT LOANS BETWEEN BANKS THE ACTION HAD BEEN WIDELY EXPECTED AND THERE WAS LITTLE MARKET RESPONSE MEANWHILE BRAZIL'S CREDITORS YESTERDAY REMOVED ONE OF THE BIGGEST OBSTACLES STANDING IN THE WAY OF ITS 52 BILLION DEBTRESTRUCTURING DEAL WITH FOREIGN COMMERCIAL BANKS THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/2 POINT OR MORE THAN 5 FOR A BOND WITH A 1000 FACE VALUE TO 91 27/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE ROSE TO 689 FROM 685 ON TUESDAY WHEN THE FED ANNOUNCED IT WAS TIGHTENING TUESDAY A WAVE OF BUYING FROM INVESTORS AND TRADERS TOOK PRICES SHARPLY HIGHER ACROSS THE ENTIRE SPECTRUM OF TREASURY SECURITIES SOME OF THAT BUYING CONTINUED THROUGH THE EARLY PART OF YESTERDAY'S SESSION ESPECIALLY AMONG SHORTTERM ISSUES AND PRICES WERE HOLDING ON TO MODERATE GAINS THROUGH MIDAFTERNOON THE POSITIVE REACTION IS A REFLECTION OF SENTIMENTS THAT THE FED'S MOVE TO RAISE SHORTTERM RATES WOULD SQUELCH INFLATIONARY PRESSURES INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF FIXEDCOUPON PAYMENTS FROM BOND INVESTMENTS RESTRAINING THE MARKET WAS A SENSE THAT ALTHOUGH THE FED'S SECOND TIGHTENING IN SEVEN WEEKS REMOVED SOME NEARTERM UNCERTAINTY AT SOME POINT THE CENTRAL BANK WILL AGAIN RAISE INTEREST RATES AND IN A RISING INTERESTRATE ENVIRONMENT IT SIMPLY DOESN'T MAKE SENSE FOR INVESTORS TO BE AGGRESSIVELY BUYING TREASURYS MARKET PARTICIPANTS SAID WITH THE FED HAVING CLARIFIED TO SOME DEGREE THE SPEED WITH WHICH IT IS GOING TO TIGHTEN THERE WERE SOME PEOPLE WILLING TO GET INVOLVED SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS BUT IT'S NOT A CLOSE YOUR EYES AND BUY' TYPE OF ENVIRONMENT THERE WAS DEFINITELY SOME REAL BUYING GOING ON BUT WE'RE MORE IN THE PROCESS OF ESTABLISHING A TRADING RANGE THAN ON THE VERGE OF A SUBSTANTIAL RALLY SAID MR JOHNSON INVESTORS DIDN'T HAVE TO LOOK FAR FOR A REMINDER THAT INTEREST RATES ARE HEADING HIGHER A NUMBER OF MAJOR US BANKS ANNOUNCED YESTERDAY AFTERNOON THAT THEY WERE RAISING THEIR PRIME RATES TO 625 FROM 6 IN RESPONSE TO THE FED TIGHTENING AND RISING LOAN DEMAND THE PRIME IS THE BASE INTEREST RATE THAT COMMERCIAL BANKS CHARGE ON LOANS TO THEIR BIGGEST BORROWERS WITH THE BEST CREDIT RATINGS PRIMERATE CHANGES USUALLY DON'T HAVE MUCH OF AN IMPACT ON THE BOND MARKET BUT WITH SENTIMENT STILL FRAGILE IT DOESN'T TAKE MUCH TO UNDERCUT THE MARKET TRADERS SAID THE YIELD ON THE 30YEAR BOND FOR EXAMPLE IS EXPECTED TO HOLD BETWEEN 675 AND 7 OVER THE NEXT FEW WEEKS AND BARRING ANY SURPRISES THE MARKET SHOULD BE ABLE TO HOLD NEAR CURRENT LEVELS UNTIL ANOTHER FED TIGHTENING SEEMS NEAR PLAYERS SAID FOR THE TIME BEING MOST ANALYSTS DON'T EXPECT THE FED TO ACT UNTIL AT LEAST THE MIDDLE OF MAY NEAR TERM I THINK WE'RE JUST GOING TO LEVEL OFF HERE SAID ROGER MARSHALL PRESIDENT OF RIGGS INVESTMENT MANAGEMENT CO THAT MEANS THAT ALTHOUGH 30YEAR BONDS OFFER A DECENT RETURN WITH A YIELD NEAR 680 IT DOESN'T MAKE SENSE TO BUY SECURITIES ON A BET THAT PRICES WILL RISE SUBSTANTIALLY PLAYERS SAID AT THIS STAGE IN THE MARKET WE'RE NOT GETTING TOO EXCITED SAID ED LABENSKI PRESIDENT OF IDS FIXEDINCOME ADVISORS WE'RE JUST BIDING OUR TIME PRIOR TO THE LATEAFTERNOON SELLOFF MUCH OF THE ACTIVITY HAD CENTERED ON THE GOVERNMENT'S AUCTION OF NEW FIVEYEAR NOTES ALTHOUGH THE BIDDING WASN'T AS STRONG AS SOME HAD THOUGHT IT WOULD BE OVERALL THE OFFERING WAS DEEMED RELATIVELY WELL RECEIVED THE BIDTOCOVER RATIO WHICH IS A MEASURE OF DEMAND COMPARING THE TOTAL NUMBER OF BIDS TO THOSE ACCEPTED WAS 256TO1 NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT INTEREST FROM INVESTORS OUTSIDE THE WALL STREET COMMUNITY WERE 671 MILLION IN COMPARISON OVER THE LAST 12 FIVEYEAR NOTE AUCTIONS THE ISSUE HAS DRAWN AN AVERAGE BIDTOCOVER RATIO OF 280TO1 AND NONCOMPETITIVE BIDS HAVE AVERAGED 569 MILLION MEANWHILE INVESTORS IN BRAZIL'S DEBT OBLIGATIONS RECEIVED VERY GOOD NEWS YESTERDAY CITIBANK WHICH IS THE CLOSING AGENT FOR BRAZIL'S HUGE DEBTRESTRUCTURING DEAL ANNOUNCED LATE YESTERDAY THAT IT HAS RECEIVED THE NECESSARY WAIVERS FROM CREDITORS TO ALLOW BRAZIL'S 52 BILLION EXTERNALDEBT FINANCING PACKAGE TO CLOSE ON APRIL 15 AS SCHEDULED LAST WEEK BRAZIL AND ITS BANK ADVISORY COMMITTEE TOOK THE UNUSUAL STEP OF ASKING NEARLY 800 CREDITORS TO WAIVE A CLAUSE IN THEIR CONTRACTS THAT CONDITIONED THE DEAL ON AN INTERNATIONAL MONETARY FUND STANDBY LOAN AGREEMENT CREDITORS HOLDING AT LEAST TWOTHIRDS OF THE DEBT INCLUDED IN THE DEAL HAD TO AGREE TO THE WAIVER BY TODAY IN ORDER FOR THE DEAL TO GO AHEAD THE IMF NEEDS TO APPROVE BRAZIL'S ECONOMIC PLAN BEFORE IT WILL PROVIDE A STANDBY LOAN THE STANDBY LOAN WOULD BE USED TO HELP FINANCE THE PURCHASE OF US TREASURY BONDS NEEDED TO COLLATERALIZE THE BONDS TO BE ISSUED AS PART OF THE DEBT DEAL THERE HAD BEEN WORRIES THAT THE DEAL WOULD BE DELAYED INDEFINITELY IF THE DEADLINE HADN'T BEEN MET ACCORDING TO A NEWS RELEASE WILLIAM R RHODES VICE CHAIRMAN OF CITIBANK DESCRIBED THE RESPONSE OF CREDITORS AS UNPRECEDENTED MR RHODES SAID THAT CREDITORS HOLDING MORE THAN THE NECESSARY TWOTHIRDS OF THE DEBT HAD AGREED TO THE WAIVERS AND MORE APPROVALS WERE COMING IN FORGING AHEAD WITH THE RESTRUCTURING WITHOUT THE IMF SUPPORT COULD MAKE THE DEAL MORE RISKY AND EXPENSIVE FOR BRAZIL TO COMPLETE THAT'S BECAUSE BRAZIL WILL HAVE TO BUY THE TREASURYS NEEDED AS COLLATERAL IN THE OPEN MARKET INSTEAD OF DIRECTLY FROM THE US TREASURY THE US TREASURY SAID IT WOULD SELL THE BONDS DIRECTLY TO BRAZIL IN A SPECIAL SALE ONLY WITH THE IMF STANDBY AGREEMENT IN PLACE THE NEWS HAD LITTLE EFFECT ON BRAZIL'S OUTSTANDING DEBT SINCE MOST INVESTORS WERE EXPECTING THE NECESSARY NUMBER OF WAIVERS TO BE RECEIVED IN TIME I THINK IT GOT THROUGH BECAUSE EVERYBODY WANTS THE DEAL TO GET THROUGH SAID JERRY FINNERAN PRESIDENT AT TCW AMERICAS WHICH MANAGES DEVELOPINGNATION FUNDS FOR TRUST CO OF THE WEST A LOS ANGELES MONEY MANAGER YOU HAD TO HAVE CASTIRON INNARDS TO SEE BRAZIL DEBT THROUGH THESE NEGOTIATIONS AND THE INCREDIBLE VOLATILITY OF THE BRAZILIAN DEBT MARKET HERE ARE THE RESULTS OF THE TREASURY'S FIVEYEAR SALE ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED MARCH 31 AND MATURE MARCH 31 1999 THE PACE OF CORPORATE DEBT ISSUANCE ROSE SLIGHTLY WITH OFFERINGS BY AMERICAN TELEPHONE & TELEGRAPH CO BANKAMERICA CORP AND CONSUMERS POWER CO A UNIT OF CMS ENERGY CORP IN LIGHT TRADING PRICES OF INVESTMENTGRADE AND HIGHYIELD BONDS ENDED LITTLE CHANGED ONE EXCEPTION THOUGH WAS A RALLY IN THE BONDS OF RH MACY & CO ISSUANCE HAD BEEN LOW FOR THE PAST MONTH AS INTEREST RATES ROSE IN REACTION TO THE FEB 4 TIGHTENING OF MONETARY POLICY BY THE FED BUT AFTER THE FED'S TIGHTENING TUESDAY MARKET SENTIMENT IMPROVED ENOUGH TO ENCOURAGE A FEW MORE ISSUERS SYNDICATE OFFICIALS SAY AT&T SOLD 400 MILLION OF 10YEAR NONCALLABLE NOTES AN OFFERING THAT IS PART OF ITS 1994 OVERALL FINANCING PLAN SAID LARRY PRENDERGAST VICE PRESIDENT AND TREASURER HE SAID THE DEAL HAD BEEN PLANNED PRIOR TO TUESDAY'S MARKET RALLY WHICH SET A NICE TONE IN THE MARKET FOR THE OFFERING YESTERDAY THE DEBT WAS PRICED AS 675 ISSUES AT 99265 TO YIELD 6853 044 PERCENTAGE POINT ABOVE TREASURYS AT THAT LEVEL IT WAS REPORTEDLY WELL RECEIVED BY THE MARKET SYNDICATE OFFICIALS SAID THE COMPANY WILL USE THE MONEY INITIALLY TO PAY DOWN COMMERCIAL PAPER AT&T HAS ABOUT 6 BILLION OF COMMERCIAL PAPER OUTSTANDING AT THE PARENT LEVEL MR PRENDERGAST SAID THE PAPER IS RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP AND IT WAS SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC MACY BONDS WERE THE BIG MOVERS OF THE DAY THE COMPANY'S 1425 SENIOR SUBORDINATED DEBENTURES MATURING IN 1998 TRADED UP 475 POINTS DURING THE SESSION OR 4750 FOR A BOND WITH A 1000 FACE VALUE TO 4875 THE BONDS FIRST POPPED ABOUT THREE POINTS IN REACTION TO A WALL STREET JOURNAL REPORT THAT MACY DIRECTORS REACHED AN AGREEMENT ON THE RETAILER'S REORGANIZATION PLAN THE BONDS JUMPED AGAIN AFTER MACY OUTLINED THE PLAN FOR ITS CREDITOR GROUPS PRICES OF MUNICIPAL BONDS FALTERED AFTER AN EARLY RISE TO FINISH LITTLE CHANGED IN SECONDARY TRADING LOS ANGELES'S 570 WASTEWATER SYSTEM REFUNDING BONDS OF 2020 ENDED UNCHANGED AT A PRICE OF 9631 TO YIELD 595 IN LIGHT NEWISSUE ACTION THE CALIFORNIA PUBLIC WORKS BOARD'S 84 MILLION ISSUE OF 1994 SERIES A LEASE REVENUE BONDS WERE SOLD VIA UNDERWRITERS LED BY BEAR STEARNS & CO AT A REPRICING YIELDS FOR SOME BONDS WERE RAISED 002 TO 010 PERCENTAGE POINT TO ATTRACT BUYERS FOLLOWING THE REPRICING YIELDS RANGE FROM 430 IN 1996 TO 617 IN 2014 THE INITIAL YIELD SCALE WAS 425 IN 1996 TO 615 IN 2014 PRICES OF MORTGAGE SECURITIES ENDED LOWER ON RENEWED WORRIES ABOUT INTEREST RATES AMONG PRICES OF 7 SECURITIES FOR APRIL DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 9/32 LOWER AT 97 22/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 11/32 LOWER AT 98 4/32 AND 97 29/32 RESPECTIVELY 9403240085 940324 WHO'S NEWS MEDCHEM PRODUCTS INC MEDCHEM PRODUCTS INC WOBURN MASS EDWARD F COVELL WHO HAD BEEN PRESIDENT WAS GIVEN NEW DUTIES IN A REORGANIZATION DESIGNED TO INCREASE COMPETITIVENESS MR COVELL 50 YEARS OLD WILL NOW HEAD THE COMPANY'S INTRAVENOUS DRUGDEVICE DIVISION MEDCHEM SAID THE POSITION OF PRESIDENT WILL REMAIN OPEN AND THAT JONATHAN DONALDSON CHIEF EXECUTIVE OFFICER WILL CONTINUE TO RUN THE COMPANY MEDCHEM SAID THE REORGANIZATION WILL ALLOW THE MAKER OF SPECIALTY MEDICAL PRODUCTS TO FOCUS ON INCREASING ITS BUSINESS IN A COMPETITIVE ENVIRONMENT AS PART OF THE CHANGES BRADFORD R GAY 40 WAS NAMED PRESIDENT OF MEDCHEM'S SURGICAL DIVISION WHICH MAKES DEVICES USED TO COAGULATE BLOOD MR GAY HAD BEEN SENIOR VICE PRESIDENT FOR SALES AND MARKETING 9403240083 940324 HOUSE CLEARS CORNERSTONE OF CLINTON EDUCATION PLAN WASHINGTON THE HOUSE APPROVED THE CORNERSTONE OF PRESIDENT CLINTON'S EDUCATION AGENDA YESTERDAY A 422 MILLION SCHOOLOVERHAUL PLAN THAT WILL LEAD TO THE CREATION OF VOLUNTARY NATIONAL ACADEMIC STANDARDS THE LEGISLATION CALLED GOALS 2000 APPROVED BY A HOUSESENATE CONFERENCE COMMITTEE LAST WEEK ESTABLISHES EIGHT NATIONAL EDUCATION GOALS AND ESTABLISHES A PANEL TO DEVISE MODEL ACADEMIC AND TESTING STANDARDS GOALS 2000 ENCOURAGES SCHOOL OVERHAUL BUT DOESN'T MANDATE ANYTHING IF STATES WANT TO GET FEDERAL FUNDS TO OVERHAUL THEIR SCHOOLS THEY MUST SUBMIT COMPREHENSIVE PLANS TO THE EDUCATION DEPARTMENT THAT EXPLAIN HOW THEY WOULD REACH THE NATIONAL EDUCATION GOALS WHICH INCLUDE INCREASING HIGHSCHOOL GRADUATION RATES THE PLAN ALSO BANS SMOKING AT SCHOOLS AND DAYCARE CENTERS THAT RECEIVE FEDERAL FUNDS IT ALSO REQUIRES SCHOOL DISTRICTS TO DEVISE GUN POLICIES THAT CARRY MANDATORY ONEYEAR EXPULSIONS THE SENATE BEGAN CONSIDERING THE MEASURE LAST NIGHT BUT SEN JESSE HELMS R N C STARTED A FILIBUSTER BECAUSE HIS SCHOOLPRAYER AMENDMENT HAD BEEN WEAKENED UNLESS THE BILL PASSES BY THE END OF THE MONTH THE 105 MILLION FISCAL 1994 APPROPRIATION WILL EXPIRE 9403240082 940324 WHO'S NEWS SAAB CARS USA CHIEF QUITS IN ABRUPT MOVE NORCROSS GA WILLIAM S KELLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SAAB CARS USA INC RESIGNED SURPRISING DEALERS AND STAFFERS HE SAID THE MOVE WILL ALLOW HIM TO PURSUE OTHER OPPORTUNITIES IN THE AUTO INDUSTRY I'LL JUST SEE WHAT LIES AHEAD SAID MR KELLY 45 YEARS OLD WHO BECAME PRESIDENT OF THE SWEDISH AUTO MAKER'S US SALES UNIT IN 1991 AFTER STARTING A CAREER WITH SAAB IN 1980 SAAB OFFICIALS SAID MR KELLY WAS NOT DISMISSED AND WOULD NOT BE REPLACED INSTEAD JAMES P CRUMLISH 49 IS ADDING MR KELLY'S CHORES TO HIS CURRENT POSITION AS SAAB'S REGIONAL DIRECTOR FOR THE AMERICAS UNDER MR KELLY'S TENURE SAAB REORGANIZED IN THE US MOVING ITS SALES HEADQUARTERS TO GEORGIA FROM CONNECTICUT WHILE LAYING OFF 44 OF ITS WORK FORCE IN THE PROCESS MR KELLY ALSO PLAYED A KEY ROLE IN KEEPING THE AUTO MAKER'S DEALERSHIP BODY INTACT WHILE THE COMPANY ENDURED A DROUGHT IN NEW PRODUCTS IN NOVEMBER SAAB INTRODUCED A REMODELED FIVEDOOR VERSION OF ITS SAAB 900 AND IS EXPECTED TO INTRODUCE A THREEDOOR VERSION IN APRIL AND A CONVERTIBLE THIS SUMMER SAAB OPERATES AS A 5050 VENTURE CONTROLLED BY GENERAL MOTORS CORP AND SAAB MOTORS AB THROUGH FEBRUARY SAAB'S US SALES WERE OFF BY 14 FOR THE '94 MODEL YEAR WHILE CALENDARYEAR SALES SHOWED A 9 IMPROVEMENT 9403240081 940324 US JUDGE IS CRITICIZED FOR REMARKS IN GM CASE DETROIT A FEDERAL JUDGE IN SOUTH CAROLINA WHO FOUND A SUBSTANTIAL LIKELIHOOD THAT GENERAL MOTORS CORP ENGAGED IN PERJURY WAS HIMSELF CRITICIZED BY AN APPELLATE COURT WHICH STRUCK THE CONTROVERSIAL REMARKS THE US COURT OF APPEALS FOR THE FOURTH CIRCUIT FOUND US DISTRICT JUDGE G ROSS ANDERSON JR'S CRITICISM IMPROPER BECAUSE IT CAME IN AN ORDER LAST MONTH THE JUDGE WROTE TO REMOVE HIMSELF FROM THE CASE JUDGE ANDERSON RECUSED HIMSELF FROM A CIVIL CASE INVOLVING GM'S 197387 PICKUP TRUCKS WITH SIDEMOUNTED GASOLINE TANKS AFTER GM ARGUED HE WAS BIASED AGAINST THE COMPANY IN REMOVING HIMSELF FROM THE CASE JUDGE ANDERSON WROTE THAT THERE WAS A SUBSTANTIAL LIKELIHOOD GM ENGAGED IN PERJURY AND THE SYSTEMATIC DESTRUCTION OF DOCUMENTS IT WAS IMPROPER TO MAKE NEW FINDINGS OF FACT AND CONCLUSIONS OF LAW THE APPELLATE COURT RULED SINCE JUDGE ANDERSON HAD ALREADY DETERMINED THAT BASED ON HIS OWN ACTIONS HIS FAIRNESS AND IMPARTIALITY COULD REASONABLY BE QUESTIONED THE APPELLATE COURT RULED THAT THE CASE SHOULD BE REVIEWED BY A NEW JUDGE WITH A CLEAR MIND AND A CLEAN SLATE GM COULD NOT BE REACHED FOR COMMENT LAST NIGHT 9403240080 940324 FINANCING BUSINESS STAR SEMICONDUCTOR INC STAR SEMICONDUCTOR INC A COMPUTER CHIP CONCERN BASED IN SAN JOSE CALIF FILED ON MARCH 3 FOR AN INITIAL PUBLIC OFFERING OF 750000 COMMON SHARES THE INITIAL PRICE OF THE SHARES IS EXPECTED TO BE 12 TO 14 A SHARE THE OFFERING IS EXPECTED TO TAKE PLACE IN MIDAPRIL PROCEEDS WOULD BE USED TO HIRE IMPORTANT MANAGEMENT PERSONNEL AND EXPAND ALL AREAS OF THE COMPANY INCLUDING SALES AND MARKETING AND PRODUCTION CAPACITY STAR STARTED IN FOUNDER JEFFREY ROBINSON'S GARAGE IN 1988 MAKES AND MARKETS DIGITALSIGNAL PROCESSORS USED IN COMPUTERS AND TELECOMMUNICATIONS PRODUCTS CUSTOMERS INCLUDE HEWLETTPACKARD INC AND HUGHES AIRCRAFT CO THE COMPANY MOVED TO ITS CURRENT HEADQUARTERS FROM WARREN NJ LAST FALL 9403240079 940324 BUSINESS BRIEF WHARF HOLDINGS LTD EARNINGS SOARED 33 IN 1993 BIGGER PROFIT GAINS FORECAST WHARF HOLDINGS LTD EARNINGS SURGED 33 TO 273 BILLION HONG KONG DOLLARS US3534 MILLION FROM HK205 BILLION IN 1993 AND THE COMPANY PREDICTED EVEN BIGGER PROFIT GROWTH AHEAD OUR PROFIT SHOULD ALMOST DOUBLE IN THE NEXT TWO TO THREE YEARS CHAIRMAN PETER WOO SAID HE SAID THE EARNINGS SURGE WILL COME FROM RENTAL INCOME EARNED ON ROUGHLY SIX MILLION SQUARE FEET OF NEW PROPERTY COMING ON STREAM THIS YEAR AND NEXT THE PROPERTY WILL BRING IN ABOUT HK25 BILLION IN RENTAL BILLINGS A YEAR HE ADDED WHARF'S REVENUE SURGED 43 TO HK63 BILLION IN 1993 FROM HK44 BILLION A YEAR EARLIER 9403240078 940324 BUSINESS BRIEF SHERRITT INC ACCORD IS COMPLETED TO BUY IMPERIAL OIL FERTILIZER ASSETS SHERRITT INC CLOSED AN AGREEMENT TO PURCHASE MOST OF THE FERTILIZER ASSETS OF IMPERIAL OIL LTD FOR ABOUT 385 MILLION CANADIAN DOLLARS US2822 MILLION THE FORT SASKATCHEWAN ALBERTA MINING CHEMICALS AND ADVANCED MATERIALS COMPANY SAID THE PRINCIPAL ASSETS IT AGREED TO BUY ARE IMPERIAL'S FERTILIZER PRODUCTION PLANT AT REDWATER ALBERTA AND DISTRIBUTION TERMINALS IN MANITOBA AND SASKATCHEWAN IMPERIAL BASED IN TORONTO IS CANADA'S LARGEST PETROLEUM COMPANY IT IS 696OWNED BY EXXON CORP 9403240077 940324 POLITICS & PEOPLE GEORGE MITCHELL STILL IN CONTROL BY ALBERT R HUNT GEORGE MITCHELL DOESN'T TALK LIKE A LAME DUCK HE DOESN'T ACT LIKE A LAME DUCK AND CONTRARY TO SOME EXPECTATIONS HE'S NOT A LAME DUCK AS THE SENATE MAJORITY LEADER WHEN THE MAINE DEMOCRAT STUNNED THE POLITICAL WORLD EARLIER THIS MONTH BY ANNOUNCING HE WOULDN'T SEEK A CERTAIN REELECTION IN THE FALL IT WAS WIDELY ASSUMED HIS CONSIDERABLE CLOUT WOULD WANE YET TODAY SEN MITCHELL REMAINS A CENTRAL PLAYER IN THE MAJOR BATTLES OCCUPYING WASHINGTON HEALTH CARE LEGISLATION THE CHINA TRADE DISPUTE AND THE CLINTONS' WHITEWATER WOES THAT'S ATTRIBUTABLE TO THE SPECIAL BRAND OF MITCHELL LEADERSHIP WHEN LYNDON JOHNSON RAN THE SENATE MORE THAN THREE DECADES AGO HE COULD A REWARD AND PUNISH HIS DEMOCRATIC SENATORS BY CONTROLLING COMMITTEE ASSIGNMENTS B DECIDE WHETHER THERE'D BE A ROLL CALL VOTE ON MOST AMENDMENTS AND C PARCEL OUT CAMPAIGN DOUGH TO SUPPORTIVE SENATORS IN THE PREELECTION REFORM ERA THE MAJORITY LEADER TODAY HAS NONE OF THOSE PERQUISITES OF POWER UNLIKE MOST OF HIS FELLOW DEMOCRATIC AND GOP CONGRESSIONAL LEADERS MR MITCHELL DOESN'T EVEN HAVE HIS OWN POLITICAL ACTION COMMITTEE TO CURRY FAVOR HE HAS FEW CARROTS AND ALMOST NO STICKS I WAS ASKED IF SENATORS WOULD NO LONGER BE AFRAID OF ME HE RECALLS IN AN INTERVIEW THIS WEEK THE ANSWER IS NO SENATOR HAS EVER BEEN AFRAID OF ME BUT THE 60YEAROLD MAJORITY LEADER POSSESSES UNUSUAL SKILL AND INFINITE PATIENCE HE CAN BE FIERCELY PARTISAN SINGLEHANDEDLY DEFEATING PRESIDENT BUSH'S PROPOSED CAPITALGAINS TAX CUT AND GIVING THE DEMOCRATS THE TAX FAIRNESS ISSUE FOR THE 1992 CAMPAIGN HE ALSO IS EXCEPTIONALLY THOUGHTFUL AND PERSUASIVE OPERATING WITH ARCHAIC RULES IN A BODY OF GIANTSIZED EGOS HE COMMANDS EXTRAORDINARY RESPECT AND CREDIBILITY MANY COLLEAGUES REALIZE HE NOT ONLY MAKES THE PLACE WORK AS WELL AS POSSIBLE BUT NOT INFREQUENTLY PROTECTS SENATORS FROM THEMSELVES THAT PROWESS IS LITTLE AFFECTED BY LAME DUCK STATUS I HAVEN'T DETECTED THE SLIGHTEST DIMINUTION ON MY INFLUENCE WITH COLLEAGUES SEN MITCHELL SAYS OF THE THREE WEEKS SINCE HE BOWED OUT MAYBE IT HAS EVEN BEEN ENHANCED ON ISSUES LIKE HEALTH CARE THAT IS AN ISSUE THAT HE KNOWS THOROUGHLY AND CARES ABOUT PASSIONATELY HE EXPECTS THAT SEPARATE SENATE FINANCE COMMITTEE AND LABOR COMMITTEE BILLS WILL REACH THE SENATE FLOOR IN JUNE OR JULY ASSUMING EARLIER HOUSE PASSAGE AND HE THEN WILL LEAD THE TRICKY TASK OF TRYING TO STITCH IT ALL TOGETHER ANY SUCCESSFUL BILL WILL NEED SOME REPUBLICAN SUPPORT SEN MITCHELL HAS SERVED ON THE FINANCE COMMITTEE HEALTH SUBCOMMITTEE FOR 14 YEARS WITH GOP SENS JOHN CHAFEE AND DAVID DURENBERGER WHO ARE THE TYPE OF REPUBLICANS MORE INTERESTED IN ACCOMPLISHING SOMETHING THAN IN MAKING AN ISSUE OR PLACATING INTERESTS NOT A SINGLE THING OCCURRED ON THAT SUBCOMMITTEE IN 1987 AND 1988 WHEN MR MITCHELL WAS CHAIRMAN THAT WOULD NOT HAVE OCCURRED UNDER SENS CHAFEE OR DURENBERGER HE POINTEDLY NOTED AT THIS WEEK'S FINANCE COMMITTEE HEALTH CARE RETREAT THE SINE QUA NON OF SUCCESSFUL HEALTH CARE LEGISLATION IS UNIVERSAL COVERAGE AND SEN MITCHELL KNOWS THAT'S POSSIBLE ONLY WITH MANDATES THUS HE SEES NO COMPROMISES WITH A GOP FACTION THAT OPPOSES ANY MANDATES BUT HE'S CLEARLY FLEXIBLE ON HOW ANY REQUIREMENTS SHOULD BE FASHIONED SENATE FINANCE COMMITTEE CHAIRMAN PAT MOYNIHAN HAS WORRIES ABOUT REPUBLICANS' THREATS TO FILIBUSTER A HEALTH CARE BILL THEY DON'T LIKE GEORGE MITCHELL'S ASTUTE POLITICAL ANTENNA TELLS HIM THIS IS A BLUFF A NUMBER OF REPUBLICANS HAVE TOLD ME THEY WOULD BE VERY CONCERNED ABOUT ANY FILIBUSTER HE SAYS POLITICALLY IT'D BE A DYNAMITE ISSUE HE'S NO LESS INVOLVED IN THE HIGHLY SENSITIVE ISSUE OF WHETHER TO DENY CHINA MOSTFAVOREDNATION TRADE STATUS IF SIGNIFICANT PROGRESS ISN'T MADE ON HUMAN RIGHTS BY EARLY JUNE GEORGE MITCHELL WAS THE CHIEF SENATE ADVOCATE OF LINKING MFN TO CHINA'S HUMAN RIGHTS RECORD WHEN PRESIDENT BUSH VACILLATED AFTER TIANANMEN SQUARE SEN MITCHELL SAYS THAT UNLESS CHINA CLEARLY IMPROVES ITS HUMAN RIGHTS PERFORMANCE IN THE NEXT 10 WEEKS PRESIDENT CLINTON WILL HAVE NO CHOICE BUT TO REVOKE ITS TRADING STATUS HE ACKNOWLEDGES THIS IS A BLUNT INSTRUMENT BUT ADAMANTLY INSISTS IT IS VERY IMPORTANT NOT TO CAPITULATE TO THE PLEAS OF BUSINESSMEN WHO WANT IT MFN RENEWED AT ANY COST YET BEHIND THE SCENES HE'S ENCOURAGING EFFORTS BY A BIPARTISAN GROUP OF SENATORS LED BY DEMOCRAT JOHN KERRY OF MASSACHUSETTS AND REPUBLICAN JOHN MCCAIN OF ARIZONA TO TRY TO SHAPE A NEW APPROACH THAT WOULD GET BY THE JUNE DEADLINE WITHOUT CAPITULATING ON HUMAN RIGHTS OR RETURNING TO THE LAISSEZFAIRE HUMAN RIGHTS POLICIES OF GEORGE BUSH THE HOPE THEN WOULD BE TO FIND LEVERS OTHER THAN TRADE TO PRESSURE CHINA ON BASIC HUMAN RIGHTS HE'S ENGAGED IN SIMILAR HIGHLEVEL PRIVATE CONSULTATIONS WITH THE ADMINISTRATION WITHOUT THE ACTIVE SUPPORT OF GEORGE MITCHELL THESE EFFORTS ARE DOOMED ON THE TOUCHY WHITEWATER SCANDAL THE MAINE DEMOCRAT ALREADY RESCUED CONGRESSIONAL DEMOCRATS AND THE WHITE HOUSE FROM A STEADY DRUMBEAT OF STONEWALL ALLEGATIONS WHEN HE ENGINEERED A UNANIMOUS SENATE VOTE TO HOLD HEARINGS AT SOME UNSPECIFIED FUTURE DATE BY THEN A LOT MORE WILL BE KNOWN ABOUT PROGRESS OF THE OUTSIDE COUNSEL'S INVESTIGATION THE SENATE REPUBLICAN LEADERSHIP NOW IS DEMANDING A SPECIAL INVESTIGATORY PANEL SENATE GOP LEADER BOB DOLE DOESN'T WANT THE LEAD ON WHITEWATER TO BE TAKEN BY THE BANKING COMMITTEE WHERE THE RANKING REPUBLICANS WOULD BE NEW YORK'S ALFONSE D'AMATO AN ETHICAL EMBARRASSMENT AND TEXAS'S PHIL GRAMM A LIKELY 1996 DOLE RIVAL FOR THE GOP PRESIDENTIAL NOMINATION SEN MITCHELL SUGGESTS HE'S VERY UNLIKELY TO ACCOMMODATE HIS FRIEND AND ADVERSARY BOB DOLE GEORGE MITCHELL ASSURED HIS PLACE IN HISTORY AS ONE OF THE MORE EFFECTIVE SENATE LEADERS OF THIS CENTURY PRIVATELY IS MENTIONED FOR EVERY PROMINENT POSITION IMAGINABLE RANGING FROM SECRETARY OF STATE TO BASEBALL COMMISSIONER WITH HIS BACKGROUND AS A JUDGE AND LEADER OF AN EGOCENTRIC LEGISLATIVE BODY HE'S IDEALLY SUITED FOR THE SUPREME COURT ESPECIALLY TO BE THE NEXT CHIEF JUSTICE BUT AS A MAN OF PRINCIPLE IT WOULD BE A TRAVESTY IF HE WORKED FOR THE LIKES OF GEORGE STEINBRENNER WHEN HE DECIDED TO RETIRE MR MITCHELL WENT TO THE WHITE HOUSE TO INFORM THE PRESIDENT PRIVATELY AFTER MEETING FOR OVER AN HOUR IN THE FAMILY QUARTERS BILL CLINTON TOOK THE SENATE MAJORITY LEADER DOWN TO THE OVAL OFFICE TO TRY TO TALK HIM OUT OF IT A FEW HOURS LATER HE TELEPHONED SEN MITCHELL ONCE MORE AGAIN TO NO AVAIL AIDES SAY THE PRESIDENT IS DEEPLY SADDENED THAT MR MITCHELL IS LEAVING FEARING THIS WILL LEAVE A HUGE VOID HE'S RIGHT BUT THE GOOD NEWS FOR THE WHITE HOUSE IS THAT THE VOID WON'T OPEN FOR SIX MONTHS 9403240076 940324 REVIEW & OUTLOOK EDITORIAL PATSY TAKES THE FISKE WHITE HOUSE NOTORIETY PATSY THOMASSON ACTUALLY SHOWED UP TO TESTIFY TO CONGRESS TUESDAY AND PROVED HERSELF CHARMING SHE DID LITTLE TO STILL CONCERNS ABOUT THE ADMINISTRATION'S SECURITY PROCEDURES HOWEVER AND ON THE MATTER OF HER NOCTURNAL VISIT TO VINCENT FOSTER'S OFFICE IN THE WAKE OF HIS DEATH SHE PLEADED THE FISKE MS THOMASSON WOULD LIKE NOTHING BETTER SHE SAID THAN TO TELL THE SUBCOMMITTEE WHAT I DID THAT NIGHT IN THAT OFFICE BUT DUE TO SPECIAL COUNSEL ROBERT FISKE'S PROBE INTO MR FOSTER'S DEATH SHE COULDN'T POSSIBLY COMMENT ON THAT MS THOMASSON IN CASE YOU'VE SPENT THE LAST MONTH AS AN ORBITING ASTRONAUT IS THE FOB FROM ARKANSAS WHO WAS ONCE THE TOP AIDE OF FOB BOND DEALER AND DRUG CONVICT DAN LASATER AND WHO HAS RISEN IN LIFE TO BE DIRECTOR OF THE OFFICE OF ADMINISTRATION AT THE WHITE HOUSE WHERE SHE OVERSEES PERSONNEL COMPUTERS AND SOME SECURITY OPERATIONS THESE RESPONSIBILITIES SEEM TO WEIGH HEAVILY IN THIS ADMINISTRATION THE WHITE HOUSE COUNSEL'S OFFICE IS RESPONSIBLE FOR SECURITY PASSES THE IMMEDIATE RESPONSIBILITY OF ASSOCIATE COUNSEL WILLIAM KENNEDY III THE FORMER ROSE LAW FIRM PARTNER NOW TOTTERING ON THE BRINK OF RESIGNATION MAYBE BY TONIGHT'S 730 PRESS CONFERENCE OVER A NANNYTAX ISSUE LAST NIGHT THE WHITE HOUSE SAID MR KENNEDY WOULD NO LONGER HANDLE PASSES MORE SPECIFICALLY THEY ASKED CIA DIRECTOR JAMES WOOLSEY WHAT STEPS HE HAD TAKEN TO ENSURE THAT WHITE HOUSE STAFFERS WITHOUT CLEARANCES HADN'T HAD ACCESS TO CLASSIFIED MATERIAL THE TWO MEMBERS SAID THEY WERE TROUBLED AND THAT THE URGENCY OF THIS MATTER HAS BEEN HIGHLIGHTED BY THE ARREST OF ALDRICH AMES FOR ASTRONAUTS THE RECENTLY APPREHENDED KGB MOLE IN THE CIA WHEN MS THOMASSON RESPONDED TO SIMILAR CONCERNS EXPRESSED THIS WEEK BY HOUSE SUBCOMMITTEE CHAIR STENY HOYER A MARYLAND DEMOCRAT SHE WAS HARDLY REASSURING WE DON'T THINK WE HAVE ANY ALDRICH AMESES AT THE WHITE HOUSE MS THOMASSON RESPONDED BUT WE CERTAINLY COULD MS THOMASSON ADMITS THAT SHE LACKED A PERMANENT WHITE HOUSE PASS OR SECURITY CLEARANCE UNTIL EARLIER THIS MONTH DESPITE THAT SHE HAS HAD 24HOUR ACCESS TO THE WEST WING AT ONE POINT IN HER TESTIMONY SHE ALSO SAID SHE HAD NO NEED TO HAVE THE COMBINATIONS TO ANY SAFES IN THE WHITE HOUSE THEY ARE IN THE POSSESSION OF CHARLES EASLEY A SECURITY OFFICER WHO WORKS FOR HER SHE ALSO REVEALED THAT WHILE MR KENNEDY WAS HANDLING CLEARANCES FOR WHITE HOUSE PASSES HIS OWN BACKGROUND CHECK WAS FINISHED IN MARCH 1993 BUT HE DIDN'T RECEIVE HIS OWN PERMANENT PASS UNTIL DECEMBER GOP REP FRANK WOLF WHO FIRST AGITATED THESE ISSUES ON THE HOUSE SUBCOMMITTEE THAT OVERSEES THE WHITE HOUSE BUDGET TOLD US THAT WHITE HOUSE CHIEF OF STAFF MCLARTY'S BACKGROUND CHECK WAS COMPLETED ON JANUARY 22 1993 TWO DAYS AFTER THE INAUGURATION HE DIDN'T GET HIS PERMANENT PASS UNTIL JUST THIS PAST MARCH 5 THE DAY MR FISKE'S FIRST SUBPOENAS ARRIVED AT THE WHITE HOUSE HOUSE MEMBERS WANTED TO KNOW WHAT WAS GOING ON MS THOMASSON HOWEVER PERSISTED IN TELLING REP WOLF ON TUESDAY NOT TO WORRY SHE SAID THERE WAS NO REASON FOR CONCERN THAT SENIOR WHITE HOUSE AIDES LACKED PERMANENT PASSES BECAUSE THEY NONETHELESS HAD GOTTEN REQUISITE SECURITY APPROVAL SHE HOLDS THAT MR MCLARTY'S CASE WAS FULLY ADJUDICATED WHICH APPARENTLY MEANS THE BACKGROUND CHECK WAS COMPLETE AND ACCEPTED BY MR KENNEDY WHO JUST HADN'T GOTTEN AROUND TO FORWARDING THE CHIEF OF STAFF'S PAPERS TO THE SECRET SERVICE THIS IS MALARKEY SAYS PHIL LARSEN WHO WAS ADMINISTRATIVE OFFICER IN JIMMY CARTER'S WHITE HOUSE AND RAN PERSONNEL MANAGEMENT UNDER PRESIDENT BUSH THE SECRET SERVICE MUST CLEAR A FINAL FINANCIAL CHECK AND IS PART OF AN ADJUDICATION NONE OF THIS MAKES ANY SENSE HE TOLD US IT WOULD BE ASTONISHING IF SECURITY CLEARANCES WERE ISSUED BEFORE PASSES WERE THE TWO ALWAYS AND SHOULD GO TOGETHER AFTER SLEEPING OVERNIGHT ON PATSY'S TESTIMONY REP WOLF AND REP BILL CLINGER RANKING REPUBLICAN ON THE GOVERNMENT OPERATIONS COMMITTEE CALLED FOR A GAO INVESTIGATION OF THE WHITE HOUSE PASS PROBLEM AT 815 PM LAST NIGHT AP REPORTED PRESS SECRETARY DEE DEE MYERS HAD SUDDENLY ISSUED A FACT SHEET INDICATING THAT MORE THAN 100 WHITE HOUSE STAFFERS LACK SECURITY CLEARANCES AND ONETHIRD OF THE 1044 EMPLOYEES DON'T HAVE PERMANENT PASSES 9403240075 940324 TECHNOLOGY BRIEF GLAXO HOLDINGS PLC WELLCOME GETS AN OPTION LINKED TO AIDS TREATMENT GLAXO HOLDINGS PLC SAID IT HAS SIGNED AN AGREEMENT THAT WILL ALLOW WELLCOME PLC AN OPTION TO DEVELOP AND MARKET THE EXPERIMENTAL COMPOUND 3TC FOR THE TREATMENT OF THE AIDS VIRUS THE COMPOUND GENERICALLY CALLED LAMIVUDINE IS CURRENTLY UNDER CLINICAL DEVELOPMENT WITH GLAXO FOR THE TREATMENT OF HEPATITIS B THE COMPOUND WAS LICENSED TO GLAXO IN 1990 BY BIOCHEM PHARMA INC OF LAVAL QUEBEC WELLCOME HAS MADE AN INITIAL PAYMENT TO GLAXO AND A FURTHER SUM IS DUE IF WELLCOME DECIDES FOLLOWING FURTHER TESTS TO DEVELOP AND MARKET 3TC 9403240074 940324 BID FOR POLLARD CLEMENCY IS TURNED DOWN BY CLINTON WASHINGTON PRESIDENT CLINTON REFUSED TO GRANT EXECUTIVE CLEMENCY TO CONVICTED SPY JONATHAN POLLARD AFTER THE JUSTICE DEPARTMENT RECOMMENDED AGAINST THE CLEMENCY REQUESTS BY SOME JEWISH GROUPS ATTORNEY GENERAL JANET RENO YESTERDAY JOINED THE PENTAGON AND THE CENTRAL INTELLIGENCE AGENCY IN RECOMMENDING AGAINST CLEMENCY FOR MR POLLARD WHO WAS SENTENCED TO LIFE IN PRISON IN 1986 AFTER PLEADING GUILTY TO PASSING SECRETS TO ISRAEL THE ISRAELI GOVERNMENT INCLUDING A PERSONAL PLEA BY ISRAELI PRIME MINISTER YITZHAK RABIN AND THE AMERICAN JEWISH COMMUNITY HAD CAMPAIGNED FOR HIS RELEASE ARGUING HIS SENTENCE WAS TOO TOUGH MR POLLARD A FORMER US NAVY INTELLIGENCE ANALYST IS ELIGIBLE FOR PAROLE NEXT YEAR CITING THE GRAVE NATURE OF MR POLLARD'S ACTIONS MR CLINTON SAID IN A STATEMENT THE HARM HIS ACTIONS CAUSED TO OUR COUNTRY AND THE NEED TO DETER EVERY PERSON WHO MIGHT EVEN CONSIDER SUCH ACTIONS WARRANT HIS CONTINUED INCARCERATION 9403240073 940324 RESTITUTION IS SOUGHT FROM FORMER DIRECTOR OF A FLORIDA THRIFT WASHINGTON THE FEDERAL OFFICE OF THRIFT SUPERVISION IS SEEKING AS MUCH AS 186 MILLION IN RESTITUTION AND PENALTIES FROM DONALD KAPLAN A FORMER DIRECTOR OF AMERICAN SAVINGS OF FLORIDA ON CHARGES INVOLVING A 1990 COLLATERALSUBSTITUTION PLAN MR KAPLAN COULD ALSO BE BANNED FROM THE BANKING INDUSTRY IN ITS ENFORCEMENT ACTION THE OTS CHARGED HIM WITH ILLEGALLY FAILING TO TELL THE THRIFT'S BOARD AND THE OTS ABOUT THE PLAN TO SUBSTITUTE COLLATERAL OF UNCERTAIN VALUE FOR CASH HELD AS COLLATERAL THE SUBSTITUTED COLLATERAL WAS STOCK IN ENSTAR RETAIL AN AFFILIATE OF AMERICAN SAVINGS WHICH IS BASED IN MIAMI THE ENSTAR STOCK HAD NO REAL MARKET VALUE THE OTS SAID AND THE COLLATERAL SUBSTITUTION CAUSED THE THRIFT TO LOSE AN ESTIMATED 23 MILLION THE OTS SAID ENSTAR GROUP INC WAS THE PARENT OF ENSTAR RETAIL AND OWNS 49 OF AMERICAN SAVINGS THE PARENT FILED FOR CHAPTER 11 PROTECTION FROM CREDITORS IN MAY 1991 AND WAS REORGANIZED IN JUNE 1992 ENSTAR RETAIL FILED FOR BANKRUPTCY PROTECTION IN JANUARY 1991 AND NEVER EMERGED FROM THE PROCEEDINGS IN 1992 A FORMER AMERICAN SAVINGS CHAIRMAN WHO WAS ALSO A FORMER DIRECTOR OF ENSTAR GROUP A FORMER ENSTAR GROUP CHAIRMAN WHO WAS ALSO A FORMER AMERICAN SAVINGS BOARD MEMBER AND THE THRIFT'S FORMER LAW FIRM PAID A COMBINED 112 MILLION IN RESTITUTION SETTLING OTS CONFLICTOFINTEREST CHARGES RELATED TO THE COLLATERAL SUBSTITUTION MR KAPLAN COULDN'T BE REACHED FOR COMMENT 9403240072 940324 POLITICS & POLICY SPECIAL COUNSEL'S PROBE OF WHITEWATER INCLUDES BOND DEALER LINKED TO CLINTON BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL SPECIAL COUNSEL ROBERT FISKE'S INVESTIGATION OF THE WHITEWATER MATTER HAS NOW EXTENDED TO A HIGHFLYING BOND DEALER WITH TIES TO PRESIDENT CLINTON IN A RECENT WAVE OF SUBPOENAS MR FISKE SOUGHT DOCUMENTS ABOUT MR LASATER AND HIS LASATER & CO WHICH HAD A PIECE OF THE ARKANSAS BOND BUSINESS WHILE MR CLINTON WAS GOVERNOR MR CLINTON'S RELATIONSHIP WITH MR LASATER WAS AN ISSUE IN THE 1992 PRESIDENTIAL CAMPAIGN MR LASATER RAISED MONEY FOR MR CLINTON'S 1984 GUBERNATORIAL CAMPAIGN AND GAVE A JOB TO ROGER CLINTON THE PRESIDENT'S BROTHER AS GOVERNOR OF ARKANSAS MR CLINTON LOBBIED THE STATE LEGISLATURE FOR A BOND DEAL THAT BENEFITED MR LASATER WHILE THE BOND DEALER WAS UNDER INVESTIGATION FOR TRAFFICKING IN COCAINE MR LASATER PLEADED GUILTY TO DRUG CHARGES IN 1986 MR FISKE ALSO IS SEEKING DOCUMENTS INVOLVING FORMER ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL AND WHITE HOUSE AIDE PATSY THOMASSON WHO ONCE WORKED FOR MR LASATER POM INC A COMPANY OWNED BY MR HUBBELL'S BROTHERINLAW IS LISTED ON MR FISKE'S SUBPOENAS AS WELL MR LASATER COULDN'T BE REACHED TO COMMENT AND IT COULDN'T BE DETERMINED WHETHER HE HAS RECEIVED A SUBPOENA FROM MR FISKE THE SPECIAL COUNSEL HAS ISSUED MORE THAN 150 SUBPOENAS SINCE FEBRUARY THEY LIST DOZENS OF NAMES AND REQUEST ALL DOCUMENTS AND/OR COMMUNICATIONS REFERRING OR RELATING TO THE PEOPLE LISTED MR FISKE DECLINED TO COMMENT MS THOMASSON WHOSE NAME ALSO APPEARS ON FISKE SUBPOENAS IS DIRECTOR OF THE WHITE HOUSE OFFICE OF ADMINISTRATION SHE WAS FORMERLY A SENIOR EXECUTIVE OF SEVERAL OF MR LASATER'S COMPANIES AND HELPED TO RUN HIS BUSINESS WHILE HE WAS JAILED ON THE DRUG CHARGES SHE WAS ALSO ONE OF THREE WHITE HOUSE AIDES WHO WENT TO DEPUTY COUNSEL VINCE FOSTER'S OFFICE AFTER HE COMMITTED SUICIDE LAST JULY PHOENIX GROUP INC AN INVESTORS GROUP ONCE HEADED BY MS THOMASSON IS BEING INVESTIGATED BY THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH POSSIBLE INSIDER TRADING IN ARCTIC ALASKA FISHERIES CORP STOCK IN JUNE 1992 SHORTLY AFTERWARD ARKANSASBASED TYSON FOODS INC ANNOUNCED AN AGREEMENT TO ACQUIRE THE COMPANY PHOENIX GROUP WAS ONCE CALLED LASATER INC AND WAS HEADED BY MR LASATER MS THOMASSON SAID LAST WEEK THAT SHE NEITHER TRADED IN NOR EXECUTED AN ORDER FOR THE STOCK SHE HASN'T RECEIVED A SUBPOENA FROM MR FISKE ACCORDING TO WHITE HOUSE OFFICIALS MR HUBBELL WHOSE NAME ALSO APPEARS ON SUBPOENAS ISSUED BY MR FISKE IS LINKED TO SEVERAL ASPECTS OF THE WHITEWATER CONTROVERSY INCLUDING CONFLICTOFINTEREST ALLEGATIONS INVOLVING A SUIT HE HANDLED FOR THE RESOLUTION TRUST CORP WHILE A PARTNER IN THE ROSE LAW FIRM THE ROSE FIRM HAS BEEN TRYING TO DETERMINE WHETHER MR HUBBELL INFLATED EXPENSES HE BILLED TO THE FIRM AND RECENTLY REFERRED THE MATTER TO STATE DISCIPLINARY AUTHORITIES THE LITTLE ROCK FIRM HAS ALSO BEEN MIRED IN A DISPUTE WITH MR HUBBELL OVER 1 MILLION IN EXPENSES AND UNBILLED TIME CHARGES INCURRED DURING HIS UNSUCCESSFUL HANDLING OF A LAWSUIT FOR POM WHICH HAS BECOME PART OF MR FISKE'S INQUIRIES JOHN NIELDS MR HUBBELL'S WASHINGTON LAWYER AND THE PRESIDENT OF POM SETH SKEETER WARD THE BROTHERINLAW OF MR HUBBELL DIDN'T RETURN PHONE CALLS THE WHITEWATER AFFAIR IS EXPECTED TO DOMINATE A NEWS CONFERENCE THAT PRESIDENT CLINTON HAS SCHEDULED FOR 730 PM EST TONIGHT THE PRESS CONFERENCE IS PART OF THE ADMINISTRATION'S NEW STRATEGY OF BEING MORE OPEN ABOUT THE WHITEWATER CONTROVERSY 9403240071 940324 WHO'S NEWS JP MORGAN INCREASED CHAIRMAN'S PAY 45 TO 66 MILLION IN '93 OTHER MORGAN EXECUTIVES SAW A SIMILAR RISE IN THEIR COMPENSATION PRESIDENT DOUGLAS A WARNER III EARNED ABOUT 58 MILLION LAST YEAR COMPARED WITH NEARLY 4 MILLION IN 1992 MORGAN VICE CHAIRMEN ROBERTO G MENDOZA AND KURT F VIERMETZ EACH EARNED ABOUT 54 MILLION IN 1993 UP FROM 37 MILLION A YEAR EARLIER 9403240070 940324 BUSINESS BRIEF ADAC LABORATORIES INC DECLINE IN ORDERS MAY HURT FISCAL 3RDQUARTER REVENUE ADAC LABORATORIES INC MILPITAS CALIF WARNED THAT NEW ORDERS FOR ITS NUCLEARMEDICINE IMAGING EQUIPMENT ARE SLOWING IN THE US AND EUROPE AND COULD RESULT IN LOWER REVENUE FOR THE FISCAL THIRD QUARTER ENDING JULY 1 IN THE YEAREARLIER QUARTER ADAC EARNED 45 MILLION OR 28 CENTS A SHARE ON REVENUE OF 297 MILLION THE SECOND QUARTER WHICH ENDS APRIL 2 WON'T BE AFFECTED BY THE ORDER SLOWDOWN THE COMPANY SAID A SPOKESMAN SAID SO FAR THE SECOND QUARTER IS ON TARGET WITH THE COMPANY'S INTERNAL GOALS BUT WOULDN'T ELABORATE IN A STATEMENT ADAC CHAIRMAN AND COCHIEF EXECUTIVE OFFICER STANLEY D CZERWINSKI SAID ADAC IS STILL UNCERTAIN AS TO WHETHER THIS REPRESENTS A TREND OR IS A TEMPORARY CONDITION 9403240069 940324 MARKETING & MEDIA MATSUSHITA'S MCA IS EXPECTED TO NAME TELLER TO NEW POST NEW YORK AL TELLER CHAIRMAN OF MCA MUSIC ENTERTAINMENT GROUP WILL BE NAMED AN EXECUTIVE VICE PRESIDENT OF PARENT MCA INC ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE PROMOTION WHICH IS EXPECTED TO BE ANNOUNCED TODAY CAPS A SERIES OF SUCCESSES FOR MR TELLER 49 YEARS OLD FOR THE WEEK ENDED MARCH 26 MCA MUSIC ENTERTAINMENT GROUP HAD SIX ALBUMS RANKED IN THE TOP 25 OF THE BILLBOARD 200 A LIST OF TOPSELLING ALBUMS COMPILED BY SOUNDSCAN INC WHICH TRACKS MUSIC SALES HE WILL REMAIN IN HIS MUSIC POST WHICH HE HAS HELD SINCE 1989 BUT WILL TAKE ON ADDITIONAL RESPONSIBILITIES AT MCA THE UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CORP THAT INCLUDES UNIVERSAL STUDIOS AND THEME PARKS MR TELLER WAS UNAVAILABLE FOR COMMENT AND A COMPANY SPOKESWOMAN DECLINED TO COMMENT ALTHOUGH MCA MUSIC ENTERTAINMENT GROUP IS ONE OF THE SMALLEST OF THE SIX MAJOR RECORD COMPANIES IT COMMANDS AN IMPRESSIVE 116 OF THE US DOMESTIC MUSIC BUSINESS YEAR TO DATE ACCORDING TO SOUNDSCAN FIGURES MR TELLER JOINED MCA RECORDS IN 1988 AFTER SERVING AS PRESIDENT OF CBS RECORDS NOW PART OF SONY CORP FOR THREE YEARS IN 1990 MCA MUSIC ENTERTAINMENT ACQUIRED GEFFEN RECORDS FROM ENTREPRENEUR DAVID GEFFEN FOR STOCK THEN VALUED AT NEARLY 500 MILLION IT ALSO BOUGHT GRP RECORDS A JAZZ AND ADULTEDORIENTED MUSIC LABEL IN DECEMBER 1993 MCA SAID IT WOULD OPEN NEW RECORD COMPANIES IN BELGIUM FRANCE HOLLAND ITALY SPAIN AND SWEDEN TO COMPLEMENT THOSE ALREADY ESTABLISHED IN GERMANY AND JAPAN 9403240068 940324 WHO'S NEWS DIED ERWIN A STUEBNER 88 A FORMER PRESIDENT OF KIDDER PEABODY & CO TUESDAY IN EVANSTON ILL OF COMPLICATIONS ARISING FROM PARKINSON'S DISEASE 9403240067 940324 BUSINESS BRIEF ANHEUSERBUSCH COS PLANS ARE SET TO BUY BACK 25 MILLION COMMON SHARES ANHEUSERBUSCH COS EXPANDING AN ALREADY AGGRESSIVE SHAREREPURCHASE PLAN DISCLOSED THAT IT INTENDS TO BUY BACK 25 MILLION SHARES OR ABOUT 9 OF ITS COMMON STOCK OUTSTANDING THE ST LOUIS BREWING GIANT NOTED THAT A JUNE 1992 AUTHORIZATION TO REPURCHASE 20 MILLION SHARES IS ABOUT 85 COMPLETE YESTERDAY ANHEUSERBUSCH SHARES ROSE 150 OR 29 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING TO CLOSE AT 5325 AT THAT PRICE THE LATEST REPURCHASE PROGRAM WOULD COST THE COMPANY AN INDICATED 133 BILLION ANHEUSERBUSCH SAID IT HAS NO TIMETABLE FOR COMPLETING THE REPURCHASE PROGRAM WHICH WILL INVOLVE PURCHASES IN EITHER THE OPEN MARKET OR THROUGH PRIVATELY NEGOTIATED TRANSACTIONS 9403240066 940324 HEARD ON THE STREET SOME MONEY MANAGERS SAY DRUG STOCKS ARE ATTRACTIVE DESPITE A NEW PRICE WAR BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THIS WEEK INVESTORS ARE TERRIFIED ABOUT AN INTENSIFYING PRICE WAR IN DRUGS BUT FOR INVESTORS WHO CAN HOLD STOCKS A YEAR OR TWO SOME DEPRESSED DRUG STOCKS MAY BE SCREAMING BUYS IN THE TEETH OF THE WIDESPREAD FEARS A BOLD MINORITY OF MONEY MANAGERS THINK IT'S TIME FOR INVESTORS TO RUSH INTO THE SECTOR AND SCOOP UP BARGAINS MERCK HAS FALLEN 1 5/8 THIS WEEK TO 30 1/8 A LITTLE OVER TWO YEARS AGO IT WAS ABOVE 56 BRISTOLMYERS SQUIBB IS OFF 75 CENTS ON THE WEEK TO 53 1/8 FAR BELOW ITS 1992 HIGH OF 90 1/8 PFIZER WHICH HIT 87 THE YEAR BEFORE LAST IS OFF 1 1/2 THIS WEEK TO 55 1/2 THE TRIGGER SANDOZ A SWISS DRUG COMPANY SAID IT WILL SELL ITS NEW CHOLESTEROLLOWERING DRUG FOR ABOUT HALF THE PRICE OF THE MAINSTAY DRUGS IN THE FIELD MERCK AND BRISTOLMYERS SQUIBB MAKE THE LEADING DRUGS NOW INVESTORS TOOK THIS AS A BITTER REMINDER THAT PHARMACEUTICALS MAKERS FACE A ROUGH PRICING ENVIRONMENT WHETHER OR NOT CONGRESS ACTS THIS YEAR ON PRESIDENT CLINTON'S HEALTHCARE PROPOSALS BUT IN A LONGTERM CONTEXT THIS WEEK'S DECLINES MAY NOT MEAN MUCH FOR 18 MONTHS STARTING IN JANUARY 1992 THE DRUG GROUP FELL LIKE A STONE IN THE NINE MONTHS SINCE IT'S BEEN MOSTLY MOVING SIDEWAYS A PRELUDE SOME THINK TO A REBOUND WITH REAL PROFIT POTENTIAL DAVID KATZ OF MATRIX ASSET ADVISORS SAYS HIS MEASURE OF MOMENTUM IN ANALYSTS' EARNINGS ESTIMATES HAS TURNED POSITIVE FOR THE DRUG STOCKS FOR THE FIRST TIME SINCE MID1990 THIS DOESN'T MEAN THAT ANALYSTS ARE RAISING ESTIMATES YET IN MOST CASES THEY'RE STILL LOWERING THEM BUT NOW THEY ARE SHAVING THE ESTIMATES BY PENNIES PER SHARE INSTEAD OF DIMES OR QUARTERS MR KATZ SAYS HIS ESTIMATEMOMENTUM GAUGE PROVIDED EARLY WARNING OF THE 199293 DECLINE OF DRUG STOCKS IN 1990 AND 1991 ANALYSTS WERE STILL RAISING THEIR ESTIMATES BUT AT A DECREASING RATE NOW HE THINKS THE INDICATOR SIGNALS A COMEBACK FOR THE STOCKS DURING THE NEXT YEAR OR TWO HE OWNS UPJOHN AND BRISTOLMYERS FOR THE FIRST TIME IN MORE THAN A DECADE DRUG STOCKS ARE CHEAP SELLING AT 11 TO 15 TIMES ESTIMATED 1994 EARNINGS I DON'T THINK THEY'RE GOING TO HAVE THE KIND OF PROFIT MARGINS THEY ONCE HAD OR THE KIND OF GROWTH THEY ONCE HAD SAYS DAVID DREMAN A MONEY MANAGER IN JERSEY CITY NJ BUT AT TODAY'S PRICES HE SAYS THEY DON'T HAVE TO HE HAS LOADED THE PORTFOLIO AT DREMAN VALUE MANAGEMENT WITH CLOSE TO 10 DRUG STOCKS INCLUDING BRISTOLMYERS AMERICAN HOME PRODUCTS MARION MERRELL DOW UPJOHN AND ELI LILLY DRUG STOCKS CARRY ATTRACTIVE DIVIDEND YIELDS OFTEN 4 OR MORE WE CALL THEM OUR NEW UTILITIES SAYS MR DREMAN IN FACT MANY DRUG STOCKS OUTYIELD UTILITIES NOWADAYS HE SAYS BUT UNLIKE MOST UTILITIES DRUG COMPANIES HAVE GREAT BALANCE SHEETS WITH VERY LITTLE DEBT AND THEY ARE PROBABLY BETTER POSITIONED THAN UTILITIES TO RAISE DIVIDENDS IN COMING YEARS THE COMPANIES HAVE JUST BEGUN THE FIGHT TO REDUCE COSTS THERE'S ROOM FOR A LOT MORE COSTCUTTING BOTH IN RESEARCH AND DEVELOPMENT AND IN CORPORATE OVERHEAD SAYS RICHARD RUBINSTEIN OF OPPENHEIMER MANAGEMENT HE OWNS BRISTOLMYERS ELI LILLY AND UPJOHN WHAT'S MORE ACQUISITION LIGHTNING MIGHT STRIKE SEVERAL MONEY MANAGERS SAY DRUG COMPANIES THAT COMBINE FORCES COULD SLASH SPENDING ON MARKETING ADMINISTRATION AND DUPLICATIVE RESEARCH FREQUENTLY MENTIONED AS POSSIBLE TAKEOVER CANDIDATES ARE SYNTEX AND UPJOHN MEANWHILE THE THREAT OF EXTREMELY TIGHT REGULATION IS RECEDING AS CONGRESS HEADS BACK TO THE DRAWING BOARD ON HEALTH CARE INSTEAD OF EMBRACING PRESIDENT CLINTON'S PLAN IF A NATIONAL HEALTH INSURANCE PLAN IS PASSED IT MIGHT CRIMP PRICES BUT WILL GREATLY EXPAND THE MARKET ALL THIS DOESN'T MEAN THAT DRUG STOCKS ARE OUT OF THE WOODS EMPLOYERS HEALTH MAINTENANCE ORGANIZATIONS HOSPITALS AND LARGE PURCHASING SERVICES ARE DETERMINED TO PUSH DOWN THE COST OF HEALTH CARE INCLUDING DRUGS TECHNICAL MARKET ANALYSTS WHO STUDY STOCK CHARTS GENERALLY SAY DRUG STOCKS AREN'T A BUY QUITE YET THEY ARE GETTING CLOSE SAYS GARY ANDERSON A TECHNICAL ANALYST WITH ANDERSON & LOE IN EUGENE ORE TRADING VOLUME HE SAYS IS DRYING UP AS THEY WORK THEIR WAY SIDEWAYS THAT'S A GOOD SIGN HE SAYS IN THE EARLY STAGES OF A DECLINE STOCKS PLUNGE ON HEAVY VOLUME LATE IN A DECLINE VOLUME DRIES UP EVEN SO MR ANDERSON WOULDN'T SNATCH UP DRUG STOCKS YET HE SEES ONE MORE SHAKEOUT IN THE GROUP AS FAIRLY LIKELY THEY'RE ALL STILL IN LATESTAGE DECLINES SAYS STAN WEINSTEIN OF THE NEWSLETTER PROFESSIONAL TAPE READER THE STOCKS ARE NOT A GOOD SHORTTERM IDEA HE SAYS BUT HE THINKS IT'S QUITE POSSIBLE THEY WILL OUTPERFORM THE OVERALL MARKET FOR THE REMAINDER OF 1994 PARTICULARLY IF THE OVERALL MARKET FALLS MANY MONEY MANAGERS ALSO SAY IT'S TOO EARLY TO BUY DRUG STOCKS JOHN NEFF MANAGER OF WINDSOR FUND DOESN'T OWN ANY ALTHOUGH HE SAYS I DO LOOK LONGINGLY AT THEIR DIVIDEND YIELDS IT SEEMS TO ME THAT THE MARKET HASN'T YET FULLY ADJUSTED TO DRUG STOCKS' REDUCED GROWTH RATE MR NEFF SAYS HE THINKS EARNINGS GROWTH AT DRUG COMPANIES WILL AVERAGE 6 TO 8 ANNUALLY PERHAPS 10 TO 12 FOR THE GOOD GUYS AND ZILCH FOR THE NOTSOGOOD THE FUNDAMENTAL PROBLEMS ARE JUST BECOMING HIGHLY VISIBLE SAYS STEPHEN M DALTON OF CORESTATES INVESTMENT ADVISERS IN PHILADELPHIA I DON'T MEAN THAT PRICING IS A PROBLEM I MEAN THAT PRICES ARE COLLAPSING BEGINNINGS OF CONSOLIDATION THERE HASN'T BEEN ENOUGH PAIN YET SAYS ANTHONY I KREISEL COMANAGER OF PUTNAM FUND FOR GROWTH & INCOME IN BOSTON I HAD HOPED BY THIS TIME TO HAVE SEEN MORE MASSIVE AND DRACONIAN COSTCUTTING MEASURES ALONG WITH THE BEGINNINGS OF CONSOLIDATION AMONG DRUG COMPANIES DESPITE THEIR SKEPTICISM BOTH MR DALTON AND MR KREISEL DO OWN A FEW DRUG STOCKS DRUG COMPANIES ARE GOING TO BE QUALITY MATURE SLOWGROWTH COMPANIES SAYS DOUGLAS K RABORN A DELRAY BEACH FLA MONEY MANAGER I DON'T THINK THERE'S ANY DOWNSIDE BUT I DON'T THINK THE UPSIDE IS EXCITING BUT MONEY MANAGERS LIKE OPPENHEIMER'S MR RUBINSTEIN SAY THAT WHEN THE DUST SETTLES DRUG COMPANIES WILL STILL HAVE ABOVEAVERAGE PROFITABILITY IN THE REALM OF HEALTHCARE COSTS DRUGS ARE REALLY THE SOLUTION AND NOT THE PROBLEM HE SAYS EVEN EXPENSIVE DRUGS RARELY COST MORE THAN 10 A DAY BUT A STAY IN THE HOSPITAL RUNS 900 TO 1200 A DAY IT'S STILL A LOT CHEAPER TO TREAT ANY DISEASE WITH A DRUG THAN IT IS TO TREAT IT IN THE HOSPITAL CHARLES WILL A LOUISVILLE KY MONEY MANAGER WHO SCORED NICELY WITH GOLD STOCKS LAST YEAR HAS SHIFTED 18 OF HIS PORTFOLIO INTO DRUG STOCKS BUYING BRISTOL LILLY MERCK SYNTEX AND UPJOHN SURE THE DRUG COMPANIES HAVE LOST THE ABILITY TO RACK UP PRICE INCREASES MR WILL CONCEDES BUT MOST OF THEM ARE WORLDWIDE COMPANIES AND THEY MAKE MONEY IN OTHER COUNTRIES WHERE PRICING ISN'T EASY MR WILL THINKS IT'S RIDICULOUS THAT DRUG STOCKS YIELD MORE IN DIVIDENDS THAN UTILITIES DO A UTILITY HAS ITS PRICES COMPLETELY SET HE NOTES AND MOST HAVE VERY SLOW GROWTH DRUG COMPANIES INNOVATE CONSTANTLY WITH SCIENTISTS GAINING A BETTER UNDERSTANDING OF CELL BIOLOGY THE MEDICINES OF 10 YEARS FROM NOW MAY BE ONLY A GLIMMER IN A TEST TUBE TODAY AMERICA'S DRUG COMPANIES ARE THE WORLD'S LEADERS SAYS MR WILL AS WITH MOST ASPECTS OF LIFE THERE ARE NEGATIVES AND THERE ARE POSITIVES INVESTORS RIGHT NOW ARE OBSESSED WITH THE NEGATIVES 9403240065 940324 BUSINESS BRIEF HEALTHTRUST INC HOSPITAL CHAIN TO ACQUIRE 300BED SITE FOR 76 MILLION HEALTHTRUST INC SIGNED A CONTRACT TO BUY A NONPROFIT NASHVILLE TENN HOSPITAL IT IS PAYING 76 MILLION TO A CHARITABLE FOUNDATION TO BUY NASHVILLE MEMORIAL HOSPITAL FROM NONPROFIT NASHVILLE MEMORIAL HEALTH SYSTEMS INC WHICH RUNS THE 300BED FACILITY ACCORDING TO NASHVILLE MEMORIAL OFFICIALS HEALTHTRUST BASED IN NASHVILLE TENN WOULDN'T COMMENT ON DETAILS OF THE ACQUISITION NASHVILLE MEMORIAL CURRENTLY RELIES ON MEDICARE PATIENTS FOR ABOUT 60 OF ITS BUSINESS THE ACQUISITION WILL ALLOW IT TO ATTRACT A BROADER CLIENTELE AND REFERRALS FROM HEALTHTRUST'S 10 OTHER HOSPITALS IN THE AREA ACCORDING TO WILLIAM PURYEAR CHAIRMAN OF THE HOSPITAL HEALTHTRUST IS THE SECONDLARGEST US CHAIN WITH 81 HOSPITALS IN 21 STATES 9403240064 940324 INTERNATIONAL BRIEF LASMO PLC UK ENERGY GROUP REPORTS LOSSES NARROWED LAST YEAR LASMO PLC SAID ITS LOSS NARROWED IN 1993 TO 131 MILLION 195 MILLION FROM 392 MILLION IN 1992 SALES FOR THE UK ENERGY GROUP GAINED 92 TO 678 MILLION FROM 621 MILLION PROFIT BEFORE EXCEPTIONAL ITEMS TOTALED 110 MILLION DOWN SLIGHTLY FROM 112 MILLION IN 1992 LASMO CALLED 1993 A YEAR OF SOLID ACHIEVEMENT IN TERMS OF OPERATING PERFORMANCE IN BOTH EXPLORATION AND DEVELOPMENT RESTRUCTURING CONTROLLING AND REDUCING COSTS AND STRENGTHENING THE FINANCIAL POSITION BY RAISING NEW CAPITAL AND DISPOSING OF ASSETS BUT IT SAID RESULTS FOR 1993 WERE ADVERSELY AFFECTED BY HIGHER NET INTEREST CHARGES THE DECLINE IN DOLLAR OIL PRICES AND THE NEED TO MAKE PROVISIONS AGAINST CERTAIN ASSETS 9403240063 940324 BUSINESS BRIEF STANDARD FEDERAL BANK COMPANY AGREES TO ACQUIRE MACKINAC FINANCIAL CORP STANDARD FEDERAL BANK SAID IT AGREED TO ACQUIRE MACKINAC FINANCIAL CORP FOR A MINIMUM CASH PURCHASE PRICE OF 213 MILLION IN A NEWS RELEASE STANDARD SAID THE FINAL PURCHASE PRICE WILL BE INCREASED IF THE AFTERTAX VALUE OF MACKINAC'S MORTGAGEBANKING OPERATION EXCEEDS 37 MILLION AS OF A DATE TO BE AGREED UPON BY THE PARTIES THE ACQUISITION IS SUBJECT TO APPROVAL BY THE SHAREHOLDERS OF MACKINAC AND THE OFFICE OF THRIFT SUPERVISION THE CLOSING WILL BE SCHEDULED WITHIN 60 DAYS AFTER RECEIPT OF OTS APPROVAL MACKINAC A TROY MICHBASED SAVINGS AND LOAN HOLDING COMPANY HAD ASSETS OF 2211 MILLION AND STOCKHOLDERS' EQUITY OF 113 MILLION AT DEC 31 1993 9403240061 940324 INTERNATIONAL WORLD WIRE COMPILED BY CATHERINE BOLGAR THE EUROPEAN UNION SIGNED AN ACCORD FOR TRADE AND POLITICAL COOPERATION WITH UKRAINE THE TRADE BLOC'S FIRST SUCH PACT WITH A FORMER SOVIET REPUBLIC UNDER THE AGREEMENT THE 12MEMBER EU WILL GRANT UKRAINE FAVORABLE TRADE STATUS AND REMOVE QUOTAS ON UKRAINIAN IMPORTS AND UKRAINE WILL REMOVE HURDLES TO EU IMPORTS AND INVESTMENT THE PACT ALSO ALLOWS EU COMPANIES OPERATING IN UKRAINE TO USE HARD CURRENCY THE ACCORD IS PART OF AN EU DRIVE TO STRENGTHEN LINKS WITH EASTERN EUROPE WITH SOME OF THE REGION'S NATIONS POSSIBLY JOINING THE EU AT THE END OF THE DECADE WHILE THE AGREEMENT DOESN'T CURRENTLY OFFER UKRAINE THE PROSPECT OF MEMBERSHIP IT PROVIDES FOR AN EVENTUAL FREETRADE ZONE WITH THE EU SEPARATELY THE EU GRANTED 143 MILLION IN AID FOR VICTIMS OF THE CHERNOBYL NUCLEAR ACCIDENT IN UKRAINE EIGHT YEARS AGO THE AID WILL HELP FURNISH HOSPITALS IN UKRAINE AND BELARUS WITH THYROIDCANCER DETECTION EQUIPMENT AND MEDICINE RUSSIA WILL PUBLISH A NEW MAP OF THE COUNTRY WITHOUT THE DELIBERATE DISTORTIONS SOVIET AUTHORITIES ONCE USED TO MISLEAD THE WEST THE SEGODNYA NEWSPAPER REPORTED THE MAP TOGETHER WITH A NEW ATLAS WILL REFLECT THE POLITICAL CHANGES THAT HAVE TAKEN PLACE SINCE THE 1991 SOVIET BREAKUP IN THE PREVIOUS EDITION ISSUED IN 1983 SOVIET AUTHORITIES REQUIRED GEOGRAPHERS TO DISTORT IMPORTANT ROADS AND OMIT CITIES AND TOWNS BUILT AROUND STRATEGIC DEFENSE FACILITIES THE NEW MAP WORK IS COMPLICATED BECAUSE BORDERS BETWEEN FORMER SOVIET REPUBLICS WHICH HAD ONLY ADMINISTRATIVE SIGNIFICANCE IN THE PAST NOW HAVE TO BE CLEARLY MARKED INDONESIA STARTED UP TWO COALFIRED POWERGENERATING PLANTS WITH A TOTAL CAPACITY OF 800 MEGAWATTS THE NEW FACILITIES ARE EXPECTED TO EASE ELECTRICITY SHORTAGES IN JAVA AND THE TOURIST ISLAND OF BALI WHERE SOME INDUSTRIAL PROJECTS HAVE BEEN DELAYED BECAUSE OF INSUFFICIENT POWER SUPPLY THE WORLD BANK WHICH FINANCED THE PLANTS HAS AGREED TO A 41 BILLION LOAN FOR 21 ELECTRICITY PROJECTS IN INDONESIA WHICH PLANS TO DOUBLE ITS ELECTRICITYGENERATING CAPACITY IN FIVE YEARS ZAMBIA RECEIVED PLEDGES OF 114 BILLION IN AID FOR 1994 FROM 11 COUNTRIES AND PRAISE FOR ITS MASSIVE OVERHAUL OF A STAGNANT ECONOMY THE 28MONTHOLD GOVERNMENT HAS SLASHED ZAMBIA'S ANNUAL INFLATION RATE FROM 284 IN EARLY 1993 TO 10 AT YEAR END AND TURNED THE ECONOMY FROM ALMOST COMPLETE STATE CONTROL TO A MARKETDOMINATED SYSTEM THE PLEDGES COORDINATED THROUGH THE WORLD BANK MEET ZAMBIA'S FULL REQUEST FOR ASSISTANCE FOR THE FIRST TIME THE AID INCLUDES 285 MILLION FOR DEVELOPMENT PROJECTS AND FOOD AID 590 MILLION FOR BALANCEOFPAYMENT SUPPORTS AND 260 MILLION FOR DEBT RELIEF WORKERS IN MAJOR BRAZILIAN CITIES DEMONSTRATED AGAINST SALARY LOSSES UNDER THE GOVERNMENT'S ANTIINFLATION PLAN MORE THAN 5000 CIVIL SERVANTS MARCHED IN BRASILIA IN SAO PAULO THE COUNTRY'S ECONOMIC CENTER A WORK STOPPAGE BY BUS AND SUBWAY CONDUCTORS LEFT THOUSANDS OF COMMUTERS STRANDED DURING THE MORNING RUSH HOUR PROTESTERS OPPOSE THE GOVERNMENT'S ECONOMIC STABILIZATION PLAN WHICH CALLS FOR SALARIES TO BE TIED TO A NEW PRICE INDEX THE PLAN WHICH HAS THE SUPPORT OF LEADING BUSINESS GROUPS AIMS TO SLOW INFLATION NOW RUNNING AT MORE THAN 40 A MONTH CZECH RADIO IS ISSUING AN 18MINUTE COMPACTDISK RECORDING OF PRESIDENT CLINTON PLAYING THE SAXOPHONE AT PRAGUE'S REDUTA JAZZ CLUB IN JANUARY THE CD IS TITLED TWO PRESIDENTS' JAM SESSION AS CZECH PRESIDENT VACLAV HAVEL WAS IN THE AUDIENCE THE GIG INCLUDES RENDITIONS OF MY FUNNY VALENTINE AND SUMMERTIME WHICH MR CLINTON PERFORMED FOR MR HAVEL AND 75 OF HIS ARTISTIC FRIENDS THEY RESPONDED WITH A STANDING OVATION VIETNAM IS COMBINING THOUSANDS OF SMALL AILING STATEOWNED COMPANIES INTO LARGER INDUSTRIAL GROUPS WHILE SHIFTING BUSINESS PLANNING TO COMPANY MANAGERS FROM GOVERNMENT MINISTRIES THE RESULTING CONSOLIDATIONS PRIVATIZATIONS AND FAILURES HAVE SLASHED THE NUMBER OF STATEOWNED ENTERPRISES TO ABOUT 4000 FROM 6000 AT THE START OF THE YEAR AND 15000 SEVERAL YEARS AGO THE PROCESS IS EXPECTED TO CONTINUE FOR TWO YEARS EQUITY SHARES IN SOME OF THE COMBINED COMPANIES ALREADY HAVE BEEN OFFERED TO VIETNAMESE INVESTORS THE GOVERNMENT WHICH HOPES TO START A STOCK MARKET IN 1997 OR 1998 INTENDS TO EXPAND SHARE OWNERSHIP BY OFFERING STOCK TO WORKERS WITHIN THE COMPANIES THEN TO THE GENERAL PUBLIC AND FINALLY TO FOREIGNERS THE CHIEF CATALYST FOR THE CHANGE IS THE PASSAGE OF SEPARATE BANKRUPTCY AND COMMERCIAL LAWS BY THE NATIONAL ASSEMBLY IN DECEMBER FOREIGN INVESTORS ESPECIALLY BANKS CONSIDER ESTABLISHMENT OF A BANKRUPTCY LAW A PREREQUISITE TO LENDING TURKEY ORDERED OIL TANKERS LONGER THAN 200 YARDS TO SAIL THROUGH THE BOSPORUS ONLY DURING DAYLIGHT AND AT REDUCED SPEEDS THE MOVE FOLLOWS A COLLISION AND FIRE LAST WEEK THAT CLOSED THE STRAIT LINKING THE MEDITERRANEAN AND BLACK SEAS FOR FIVE DAYS THE EUROPEAN UNION'S ANNUAL ECONOMIC REPORT FOR 1993 SAYS INTEREST RATES ARE STILL TOO HIGH IN MEMBER STATES WHOSE ECONOMIES ARE IN RECESSION 9403240060 940324 ENTERPRISE SMALLBUSINESS PROGRAM IN CALIFORNIA CUTS HEALTH PREMIUMS BY AVERAGE 63 BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL AN INNOVATIVE SMALLBUSINESS HEALTHINSURANCE PROGRAM IN CALIFORNIA THAT POOLS EMPLOYEES INTO PURCHASING COOPERATIVES IS CUTTING PREMIUMS BY AN AVERAGE 63 MICHAEL ROUSH AN OFFICIAL WITH THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS IN WASHINGTON DC A GROUP OF 600000 SMALL BUSINESSES SAID THE CALIFORNIA COOP'S SUCCESS COMES AS MOST SMALL BUSINESSES NATIONALLY EXPERIENCE LOW TO MIDSINGLEDIGIT INCREASES COMPARED TO DOUBLEDIGIT INCREASES AS RECENTLY AS LAST YEAR THE NEARLY YEAROLD HEALTH INSURANCE PLAN OF CALIFORNIA ANNOUNCED THAT IT HAS NEGOTIATED THE PREMIUM CUTS WITH 23 HEALTH PLANS TO TAKE EFFECT JULY 1 THE PLAN WHICH COVERS 2500 BUSINESSES WITH 44000 EMPLOYEES AND DEPENDENTS IS THE NATION'S FIRST STATEWIDE GOVERNMENTBACKED HEALTHINSURANCE PURCHASING COOP MANY EXPERTS CONSIDER IT A MODEL FOR THE VARIOUS SORTS OF PURCHASING POOLS BEING DEBATED BY NATIONAL HEALTH REFORMERS UNDER THE CALIFORNIA PLAN EMPLOYERS VOLUNTARILY JOIN THE COOPERATIVES THIS GIVES THEM THE SAME BARGAINING CLOUT AS LARGE BUSINESSES EMPLOYES AT PARTICIPATING SMALL BUSINESSES CAN PICK AMONG SEVERAL PLANS AND EMPLOYERS ARE REQUIRED TO COVER AT A MINIMUM THE COST OF 50 OF THE CHEAPEST PLAN WITH EMPLOYES PAYING THE REST THE RATE DECREASE THAT MEMBERS ARE RECEIVING WILL COME AS WELCOME NEWS TO ALL PROPONENTS OF MANAGED COMPETITION SAID RICHARD FIGUEROA DEPUTY DIRECTOR WITH THE CALIFORNIA MANAGED RISK MEDICAL INSURANCE BOARD A 13PERSON AGENCY OVERSEEING THE ALLIANCE IT SHOWS THAT ALLIANCES CAN BE PUT TOGETHER IN A SHORT PERIOD OF TIME WITH A LOT OF INSURANCECOMPANY PARTICIPATION THE PREMIUM CUT COMES ON THE HEELS OF A 11 PREMIUM REDUCTION ANNOUNCED BY THE GIANT CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM FOR MEMBERS IN 18 HEALTHMAINTENANCE ORGANZATIONS ANNOUNCED LAST MONTH CALPERS' NEW RATES WILL BENEFIT 920000 PUBLIC EMPLOYEES AND FAMILY MEMBERS IN THE MOST RECENT ROUND OF NEGOTIATIONS FOR THE CALIFORNIA COOPS COMPETITION WAS INTENSE SAID RONALD BREWER A REGIONAL DIRECTOR FOR AETNA LIFE & CASUALTY CO WHICH CAPTURED NEARLY 40 OF THE PROGRAM'S BUSINESS IN ITS FIRST YEAR THROUGH OUR SUCCESS OTHERS HAVE SEEN THAT THERE'S A LOT OF BUSINESS TO BE WRITTEN AND PEOPLE WHO WEREN'T AGGRESSIVE LAST YEAR CAME BACK MUCH MORE AGGRESSIVELY THE HEIGHTENED COMPETITION IS MOST EVIDENT WHEN COMPARING THE NEGOTIATED RATES MR FIGUEROA SAID BEGINNING JULY 1 IN THE LOS ANGELES AREA FOR EXAMPLE SIX OF THE 17 PARTICIPATING COMPANIES WILL OFFER MONTHLY RATES BELOW 100 FOR AN INDIVIDUAL BETWEEN 30 YEARS AND 39 YEARS OLD WITH THE LOWEST ONE AT 87 LAST YEAR ONLY ONE OF 15 PARTICIPATING COMPANIES OFFERED A MONTHLY RATE BELOW 100 THE RATE 8829 ROBERT LASZEWSKI A CONSULTANT WITH HEALTH POLICY AND STRATEGY ASSOCIATES WASHINGTON DC SAID THE CALIFORNIA COOPS ARE PROBABLY THE BEST EXAMPLE OF WHAT THE MARKETPLACE WILL BE HAPPY WITH THE PROGRAM HOWEVER STILL HAS A SMALL MARKET SHARE JUST SEVERAL PERCENT OF THE SMALL BUSINESS MARKET 9403240059 940324 WHAT'S NEWS BUSINESS AND FINANCE HEALTHCARE LEGISLATION WON APPROVAL FROM A HOUSE WAYS AND MEANS SUBCOMMITTEE AFTER DEMOCRATS COBBLED TOGETHER A FRAGILE FINANCING PACKAGE THAT INCLUDES A 1 PAYROLL TAX ON LARGE SELFINSURED COMPANIES THE LANDMARK LEGISLATION TO OVERHAUL THE NATION'S SYSTEM RESTORES MOMENTUM TO CLINTON'S EFFORTS TO ACHIEVE HEALTH COVERAGE FOR ALL SEVERAL MAJOR BANKS NUDGED UP THEIR PRIME LENDING RATES A QUARTER OF A PERCENTAGE POINT TO 625 THE FIRST INCREASE IN FIVE YEARS FOLLOWING THE FED'S TIGHTENING OF CREDIT DURABLEGOODS ORDERS FELL 25 IN FEBRUARY FROM JANUARY REFLECTING A DROP IN AIRCRAFT SALES BUT THE REST OF THE MANUFACTURING SECTOR WAS SOLID NOVELL'S AGREEMENT TO BUY WORDPERFECT FOR 14 BILLION CAME AFTER A SECRET BIDDING WAR WITH RIVAL LOTUS PEOPLE INVOLVED IN THE NEGOTIATIONS SAID LORAL IS EXPECTED TO ANNOUNCE TODAY THAT IT HAS ARRANGED ENOUGH FUNDING 275 MILLION FOR THE FIRST PHASE OF THE 18 BILLION MOBILEPHONE SYSTEM IT IS ASSEMBLING WITH QUALCOMM LORAL WILL ALSO NAME OTHER PARTNERS OR INVESTORS FOR THE 48SATELLITE SYSTEM A PENTAGON TASK FORCE RECOMMENDED OVER THE AIR FORCE'S OBJECTIONS THAT MUCH OF THE MAINTENANCE WORK DONE BY MILITARY DEPOTS BE TURNED OVER TO THE PRIVATE SECTOR SURGING VEHICLE SALES THIS MONTH PROMPTED TWO OF THE BIG THREE US AUTO MAKERS TO RAISE THEIR 1994 SALES PROJECTIONS AND LED FORD TO GIVE A MIDMONTH SALES REPORT TO THE FED BEFORE IT NUDGED UP SHORTTERM RATES IBM'S CHAIRMAN PLANS TO UNVEIL HIS LONGAWAITED TURNAROUND STRATEGY TODAY OUTLINING A BLUEPRINT THAT WOULD REDUCE DEPENDENCE ON MAINFRAMES UNISYS WILL ANNOUNCE A COMPUTER SYSTEM THAT COULD MAKE IT EASIER FOR SERVICE COMPANIES TO RESEARCH THEIR CUSTOMERS' BUYING HABITS MARTIN MARIETTA PRESSURED GRUMMAN TO REJECT NORTHROP'S HOSTILE BID BUT GRUMMAN SAID THAT IT MUST AT LEAST PROVIDE NORTHROP INFORMATION SEPARATELY MARIETTA WON CONCESSIONS IT NEEDED TO COMPLETE AN ACQUISITION MACY UNVEILED AN OUTLINE OF ITS REORGANIZATION PROPOSAL AND WAS GREETED COLDLY BY TWO POWERFUL CREDITORS MICROSOFT AND MOBILE TELECOMMUNICATIONS PLAN TO BUILD A WIRELESS NETWORK FOR SENDING AND RECEIVING DATA PHILIP MORRIS IS EXPECTED TO SUE ABC NEWS TODAY CHALLENGING A RECENT REPORT SUGGESTING THAT THE TOBACCO INDUSTRY ADDS NICOTINE TO CIGARETTES TO MAKE THEM MORE ADDICTIVE A MARATHON OILLED CONSORTIUM AND RUSSIA AGREED TO THE TERMS OF A PRODUCTIONSHARING CONTRACT FOR AN OIL AND GAS PROJECT OFF SAKHALIN ISLAND WALMART STORES AND SUPERMARKET GIANT ITOYOKADO PLAN AN ALLIANCE UNDERSCORING THE US'S EVERINCREASING PRESENCE IN THE JAPANESE MARKET THE PLAN ALLOWS ITOYOKADO TO CUT COSTS BY IMPORTING LOWCOST WALMART GOODS FORD SAID IT REACHED AN AGREEMENT WITH A CHINESE PARTS SUPPLIER TO JOINTLY PRODUCE PLASTIC COMPONENTS FOR AUTOS THE MOVE BROADENS FORD'S EFFORTS TO PENETRATE CHINA'S AUTO MARKET TOKYO STOCKS SLUMPED 14 PUMMELED BY ARBITRAGE SELLING WITH THE NIKKEI 225STOCK INDEX SINKING BELOW 20000 FOR THE FIRST TIME IN TWO WEEKS THE NIKKEI LOST 29143 TO 1996210 LONDON STOCK PRICES ALSO SANK 14 SPECTRUM INFORMATION'S PRESIDENT TEMPORARILY STEPPED ASIDE TO CLEAR HIS NAME A DAY AFTER OFFICIALS RAIDED HIS FORMER FINANCIAL SERVICES FIRM AGRICULTURE OFFICIALS INTRODUCED SAFEHANDLING LABELS FOR THE NATION'S MEAT AND POULTRY INDUSTRY THE INDUSTRY HAS 60 DAYS TO COMPLY FOR GROUNDMEAT PRODUCTS AND UNTIL JULY 6 FOR LABELS ON ALL OTHER RAWMEAT PRODUCTS BONDS LEHMAN BROTHERS TREASURY INDEX 530630 OFF 2881 COMMODITIES OIL 1490 A BARREL OFF 26 CENTS DOW JONES FUTURES INDEX 14470 UP 071 SPOT INDEX 13253 UP 073 DOLLAR 10625 YEN UP 025 16802 MARKS OFF 00083 9403240058 940324 FAMILY PORTRAITS SCIONS RUE THE SALE OF PARENTS' FIRMS BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL THE SALES OF THE FATHERS CAN DISTRESS THE CHILDREN THAT FACT OF LIFE IS DAWNING ON MANY ENTREPRENEURS WHO SOLD OUT DURING THE 1980S TAKEOVER BINGE AND WHO ARE NOW CONFRONTING AN UNEXPECTED TWIST THEIR OFFSPRING YEARN TO BUY BACK THE FAMILY BUSINESS ONE FOURTH OF THE CHILDREN OF FAMILYBUSINESS OWNERS WHO SOLD THEIR COMPANIES IN THE 1980S HAVE TRIED WITH MIXED RESULTS TO REGAIN THE COMPANIES ACCORDING TO A 1993 SURVEY OF MORE THAN 400 SUCH INDIVIDUALS BY PRINCE & ASSOCIATES A STRATFORD CONN MARKETRESEARCH AND CONSULTING FIRM THOUGH THESE OFFSPRING OFTEN HAD EXPECTED TO INHERIT THEIR FAMILY'S BUSINESS MANY ULTIMATELY FAVORED ITS SALE THE PRINCE SURVEY FOUND ONLY LATER DID THEY FULLY APPRECIATE WHAT THEY HAD LOST THEY DIDN'T UNDERSTAND HOW POWERFULLY THEIR IDENTITIES WERE TIED TO THE COMPANY SAYS RICHARD NARVA A PRINCIPAL OF GENUS RESOURCES INC A BOSTON FAMILY BUSINESSCONSULTING FIRM IT REPRESENTED THEIR HERITAGE AND LEGACY NOT JUST A PILE OF ASSETS NOSTALGIA ISN'T THE ONLY REASON GROWN CHILDREN OFTEN WANT THE BUSINESS BACK MANY FEEL THAT THEIR INTIMATE KNOWLEDGE OF THE COMPANY MEANS THEY COULD RUN IT BETTER THAN THE NEW OWNERS OTHERS SEEK TO FULFILL AMBITIONS THWARTED ELSEWHERE A LOOK AT THREE OF THESE INDIVIDUALS FOLLOWS FOR TODD HOLSON A PHOTOALBUM COMPANY FOUNDED BY HIS GRANDFATHER IN 1943 WAS MY LIFE HE JOINED HOLSON CO AS A TEENAGER WHEN THE WILTON CONN CONCERN WAS OWNED BY HIS FATHER SHELDON AND HIS UNCLE MELVIN HOLSON I GREW UP WITH THE BUSINESS REMEMBERS TODD HOLSON NOW 33 YEARS OLD I SWEPT FLOORS AND WORKED AFTER SCHOOL SATURDAYS AND VACATIONS TODD HOLSON COMPLETED A COLLEGE BUSINESS DEGREE AND STARTED WORKING FULLTIME AT THE FAMILY BUSINESS IN 1983 HOLDING A VARIETY OF MANUFACTURING MARKETING AND ADMINISTRATIVE POSITIONS DURING THE NEXT FEW YEARS I LEARNED THE BUSINESS INSIDE OUT HE SAYS I ALWAYS THOUGHT ONE DAY I WOULD BE RUNNING THE COMPANY BUT IN 1987 THE FAMILY SOLD THE BUSINESS WHICH THEN HAD ABOUT 25 MILLION IN ANNUAL SALES TO BAIN CAPITAL INC A BOSTON INVESTMENT FIRM FOR MORE THAN 10 MILLION WE REACHED A STAGE IN OUR LIVES WHEN WE WERE LOOKING TO DO OTHER THINGS SAYS MELVIN HOLSON NOW 68 YEARS OLD THE TIME HAD COME TO MOVE ON SELLING TO OUTSIDERS SEEMED THE ONLY OPTION HE ADDS BECAUSE THIRDGENERATION FAMILY MEMBERS SUCH AS HIS NEPHEW WERE AT LEAST FIVE TO 10 YEARS AWAY FROM BEING ABLE TO TAKE THE REINS OF THE COMPANY TODD HOLSON WORKED FOR THE NEW OWNERS FOR TWO YEARS AS A MARKETING DIRECTOR BEFORE GIVING UP HOPE OF EVER BECOMING PRESIDENT IN 1988 HE TOOK A MARKETING JOB ELSEWHERE BUT ONLY EIGHT MONTHS LATER HE WAS INVOLVED WITH HOLSON AGAIN BY BUYING A NEGLECTED DIVISION THAT SOLD ALBUMPAGE REPLACEMENTS AND ALBUMS UNAVAILABLE IN STORES THE YOUNGER MR HOLSON SAW UNTAPPED POTENTIAL IN THE UNIT BY TAKING OVER THE REPLACEMENTPART FUNCTIONS FOR COMPANIES IN OTHER INDUSTRIES HE SAYS HE HAS INCREASED THE BUSINESS'S ANNUAL SALES TO SEVERAL MILLION DOLLARS FROM A COUPLE HUNDRED THOUSAND BUT THERE WAS ANOTHER IMPORTANT REASON FOR ACQUIRING THE DIVISION HIS GRANDMOTHER ANNETTE HOLSON THEN 89 YEARS OLD MRS HOLSON WHO HAD HELPED KEEP HOLSON'S BOOKS FOR 45 YEARS WAS THE LAST FAMILY MEMBER STILL WORKING FULL TIME AT THE COMPANY HER GRANDSON SAYS BY BUYING THE DIVISION AND TRANSFERRING HER THERE HE MADE CERTAIN THAT SHE COULD CONTINUE TO WORK AS LONG AS SHE WISHED TODD HOLSON SAYS HE EMPLOYED HIS GRANDMOTHER AS AN ACCOUNTANT UNTIL THREE MONTHS BEFORE HER DEATH LAST YEAR I HAVE NO DOUBT THE WORK KEPT HER GOING HE SAYS THAT'S SOMETHING I'M VERY PROUD OF DOUGLAS LEEDS WAS ASKED BY NEW OWNERS TO RUN THE NEW YORK ADVERTISING AGENCY SOLD BY HIS FATHER IN 1989 HE ACCEPTED THE OFFER YET THREE YEARS LATER HE ALSO FOUND HIMSELF TRYING TO BUY THE BUSINESS BACK MR LEEDS'S FATHER RICHARD AND CHESTER THOMSON FOUNDED THOMSONLEEDS CO IN 1957 THE YOUNGER MR LEEDS NOW 47 SAYS HE JOINED THE POINTOFPURCHASE AGENCY 20 YEARS LATER UNDER THE IMPRESSION THAT THIS SOMEDAY WOULD BE MY BUSINESS THAT NOTION CHANGED WHEN OGILVY & MATHER A BIG NEW YORK AD AGENCY BOUGHT THE COMPANY FOR 18 MILLION IN STOCK THERE WAS DISSENT BETWEEN THE PARTNERS AND THE EASIEST WAY TO SETTLE IT WAS TO SELL THE COMPANY SAYS MR LEEDS'S 72YEAROLD FATHER HIS SON SAYS HE DROPPED PLANS TO USE HIS SHARE OF THE PROCEEDS TO START HIS OWN FIRM WHEN OGILVY OFFERED HIM THE PRESIDENCY OF ITS NEW DIVISION PLUS SOME OF THE UNIT'S PROFITS I THOUGHT MAYBE THIS IS A FANTASTIC OPPORTUNITY TO OWN A SMALLER PIECE OF A BIGGER PIE' HE SAYS BUT LESS THAN A YEAR LATER OGILVY & MATHER'S PARENT OGILVY GROUP INC WAS ACQUIRED BY WPP GROUP PLC THE GIANT BRITISH ADVERTISING CONCERN COST CUTTING AND A DECLINING ADVERTISING MARKET TRANSFORMED THE FAMILIAL ENVIRONMENT INTO A BUREAUCRATIC NIGHTMARE THE LEEDSES SAY FOR INSTANCE SHORTLY AFTER WPP TOOK OVER THE YOUNGER MR LEEDS HIRED A RECEPTIONIST TO REPLACE ONE WHO HAD QUIT EVEN THOUGH HE PAID THE NEW EMPLOYEE 2000 LESS A YEAR HE SAYS A SENIOR OGILVY EXECUTIVE SUMMONED HIM AND IN A HUMILIATING MOMENT REPRIMANDED HIM FOR VIOLATING A HIRING FREEZE KENNETH ROMAN THEN OGILVY'S CHAIRMAN CONCEDES THAT WORKING CONDITIONS AT THOMSONLEEDS DETERIORATED AFTER WPP TOOK OVER MR LEEDS'S COMPANY DIDN'T GET ANY OF THE BENEFITS OF BEING PART OF OGILVY BUT GOT ALL OF THE PENALTIES OF THE SACRIFICES WE MADE THE SENIOR MR LEEDS WHO THEN WORKED ONE DAY A WEEK UNDER A FIVEYEAR CONSULTING CONTRACT SAYS I KNEW DOUGLAS HAD THE ABILITY TO GET OUT IF HE WANTED TO HE ADDS BUT HE HAD GREAT PRIDE IN THE COMPANY'S NAME AND REPUTATION RATHER THAN ABANDON THE BUSINESS DOUGLAS LEEDS BEGAN TRYING TO BUY IT BACK IN LATE 1990 IN EARLY 1992 HE SAYS HE DID BUY IT FOR 5 MILLION IN CASH AND NOTES LESS THAN A THIRD OF WHAT OGILVY HAD PAID THE YOUNGER MR LEEDS SAYS HE HAS MORE THAN DOUBLED THE AGENCY'S ANNUAL REVENUE TO 25 MILLION IN 1993 HIS FATHER NOW WORKS WITH HIM TWO DAYS A WEEK HANDLING CERTAIN LEGAL AND ADMINISTRATIVE CHORES IT CAN BE VERY LONELY RUNNING YOUR OWN BUSINESS DOUGLAS LEEDS SAYS I NEEDED SOMEONE I COULD BOUNCE IDEAS OFF OF SOMEBODY WITH EXPERIENCE LAST YEAR JODY VITALE TWICE APPROACHED THE BUYERS OF PERFECT FIT INDUSTRIES INC ABOUT REGAINING A STAKE IN THE HOMEFURNISHINGS MAKER THAT HIS FATHER JOSEPH HAD RUN FOR 30 YEARS THE MONROE NC COMPANY WHICH THE YOUNGER MR VITALE JOINED IN 1985 AND EXPECTED TO RUN SOMEDAY WAS SOLD IN 1989 FOR MORE THAN 50 MILLION WE GOT AN OFFER WE COULDN'T REFUSE FROM VESTAR CAPITAL PARTNERS INC A NEW YORK INVESTMENT FIRM RECALLS MR VITALE NOW 35 YEARS OLD YET FOUR YEARS LATER MR VITALE PROPOSED MERGING PERFECT FIT WITH A SMALL COMPANY THAT HE AND HIS BROTHER HAD ACQUIRED HE SAYS VESTAR REJECTED THEIR OFFER WHEN HE LEARNED LAST FALL THAT VESTAR PLANNED TO SELL PERFECT FIT TO ANOTHER SUITOR HE INQUIRED IN VAIN ABOUT BUYING AN INTEREST JAMES KELLEY A VESTAR MANAGING DIRECTOR SAYS DISCUSSIONS WENT NOWHERE BECAUSE HE DIDN'T THINK THE VITALES HAD THE RESOURCES TO ACQUIRE PERFECT FIT MR VITALE SAYS RETURNING THE COMPANY TO FAMILY OWNERSHIP WOULD HAVE MADE ECONOMIC SENSE AND ALSO WOULD HAVE MEANT A LOT TO ME PSYCHOLOGICALLY HE ADDS I KNOW THE COMPANY AND ITS CUSTOMERS A LOT OF PEOPLE IN THE FACTORY KNEW ME WHEN I WAS BORN IT WOULD HAVE BEEN NICE TO BE A PART OF THAT AGAIN 9403240057 940324 ASSOCIATE COUNSEL KENNEDY REASSIGNED IN WHITE HOUSE WASHINGTON ASSOCIATE COUNSEL WILLIAM KENNEDY III WAS REASSIGNED WITHIN THE WHITE HOUSE LEGAL DEPARTMENT AFTER ACKNOWLEDGING THAT HE FAILED TO MAKE 1991 AND 1992 SOCIAL SECURITY PAYMENTS ON TIME FOR A CHILDCARE WORKER MR KENNEDY HAD BEEN IN CHARGE OF REVIEWING THE BACKGROUND CHECKS OF PRESIDENTIAL NOMINEES AND POTENTIAL EMPLOYEES TO ENSURE THEY DIDN'T POSE SECURITY THREATS BUT THIS WEEK HE SAID HE PAID ABOUT 2000 IN TAXES AND PENALTIES FOR 1992 IN JANUARY 1993 AND A FEW WEEKS AGO HE PAID 805 FOR HIS 1991 TAXES MR KENNEDY FORMER MANAGING PARTNER OF THE ROSE LAW FIRM IN LITTLE ROCK ARK WILL PERFORM OTHER DUTIES IN THE COUNSEL'S OFFICE ACCORDING TO WHITE HOUSE OFFICIALS ANOTHER LAWYER BETH NOLAN WILL PERFORM HIS OLD DUTIES 9403240056 940324 BUSINESS BRIEF AZTEC MANUFACTURING CO COMPANY TO POST 31 RISE IN FISCAL 4THQUARTER PROFIT AZTEC MANUFACTURING CO EXPECTS TO REPORT THAT NET INCOME ROSE ABOUT 31 IN ITS FISCAL FOURTH QUARTER ENDED FEB 28 LC MARTIN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID AZTEC SAID IT EXPECTS EARNINGS OF 595000 OR 11 CENTS A SHARE COMPARED WITH 455000 OR EIGHT CENTS A SHARE A YEAR EARLIER THE COMPANY IN CROWLEY TEXAS WHICH HAS INTERESTS IN OILFIELD PRODUCTS GALVANIZING PLANTS AND ELECTRICAL COMPONENTS IS REPORTING INCREASED EARNINGS BECAUSE OF ITS DIVERSIFICATION INTO ELECTRICALPRODUCTS NICHE MARKETS MR MARTIN SAID IN AN INTERVIEW SALES ROSE 35 TO 107 MILLION FROM 79 MILLION A YEAR EARLIER AZTEC'S ELECTRICALPRODUCTS SEGMENT BRINGS IN ABOUT 68 OF THE COMPANY'S SALES MR MARTIN SAID 9403240055 940324 BUSINESS BRIEF FALCON OIL & GAS CO COMPANY PLANS TO REVIEW VARIOUS FINANCING STRATEGIES FALCON OIL & GAS CO SAID IT PLANS TO REVIEW VARIOUS FINANCING AND RESTRUCTURING STRATEGIES INCLUDING THE POSSIBLE SALE OF THE COMPANY TO ENHANCE SHAREHOLDER VALUE FALCON SAID THAT ALTHOUGH IT HASN'T HIRED AN OUTSIDE COUNSELOR TO EXAMINE SUCH POSSIBILITIES THE HOUSTON COMPANY NEEDS ADDITIONAL CAPITAL TO MEET THE 35 MILLION IN EXPECTED COSTS TO DEVELOP WELLS IN RICHLAND COUNTY MONT WE ESTIMATE THE POSSIBLE AND PROBABLE RESERVES THERE AT 11 MILLION BARRELS OF OIL SAID SPENCER MURCHISON PRESIDENT AND CHIEF EXECUTIVE OFFICER FOR THE FISCAL NINE MONTHS ENDED OCT 31 FALCON HAD A NET LOSS OF 59236 OR THREE CENTS A SHARE ON REVENUE OF 23 MILLION 9403240054 940324 WHO'S NEWS SG WARBURG HIRES GOLDMAN SACHS OFFICIAL FOR SYNDICATE GROUP NEW YORK SG WARBURG & CO IN A BID TO BOLSTER ITS US STOCK BUSINESS HIRED A VETERAN GOLDMAN SACHS & CO SYNDICATE MANAGER TO HEAD ITS SYNDICATE GROUP THE HIRING OF DAVID MILLER 51 YEARS OLD IS A COUP OF SORTS FOR THE US UNIT OF SG WARBURG GROUP PLC WHICH IS LOOKING TO CASH IN ON THE BOOM FOR NEW STOCK ISSUES MR MILLER WAS IN GOLDMAN'S SYNDICATE DEPARTMENT FOR 25 YEARS AMONG MR MILLER'S DUTIES AT WARBURG WILL BE THE STRUCTURING SYNDICATION AND PRICING OF STOCK AND STOCKLINKED OFFERINGS THIS IS AN OPPORTUNITY TO BUILD A BUSINESS MR MILLER SAID IN AN INTERVIEW AT GOLDMAN I WAS SORT OF LIKE A BRICK IN THE WALL HERE I'LL BE A BRICKLAYER BUILDING THE WALL HE SAID MR MILLER IS AMONG A GROUP OF FORMER GOLDMAN STOCK EXECUTIVES NOW AT WARBURG OTHER FORMER GOLDMAN EXECUTIVES INCLUDE HOWARD GRACE HEAD OF STOCK CAPITAL MARKETS MICHAEL COHRS HEAD OF GLOBAL STOCK CAPITAL MARKETS AND CLINT BROWN HEAD OF SALES AND TRADING 9403240053 940324 POLITICS ITALIAN STYLE A TELEVISION TYCOON TRIES FOR HIGH OFFICE SILVIO BERLUSCONI SEEKS A BREAK WITH NATION'S STATIST PAST BUT HAD COZY TIES TO STATE BY PETER GUMBEL AND LISA BANNON STAFF REPORTERS OF THE WALL STREET JOURNAL MILAN WITH AN UNCANNY KNACK FOR PREDICTING THE NEEDS OF HIS COMPATRIOTS SILVIO BERLUSCONI HAS BUILT A 7 BILLION BUSINESS EMPIRE BY BRINGING COMMERCIAL TELEVISION AMERICANSTYLE HOUSING AND DISCOUNT RETAILING TO ITALY NOW HE HAS SPOTTED A NEW GAP IN THE MARKET THAT HE IS RUSHING TO FILL POLITICAL LEADERSHIP USING ADVERTISING AND SALES TECHNIQUES HE PERFECTED IN BUSINESS MR BERLUSCONI HAS IN FOUR MONTHS CREATED A NEWLOOK RIGHTWING PARTY THAT SEEMS SET TO PLAY A MAJOR ROLE IN ITALIAN POLITICS FOLLOWING NATIONAL ELECTIONS THIS SUNDAY HIS CAMPAIGN SLOGAN PROMISES A NEW ITALIAN MIRACLE AND HIS PARTY HE TOLD A BIG RALLY IN PALERMO STANDS FOR AN ITALY THAT PRODUCES NOT AN ITALY THAT CHATTERS HIS RISE HAS ELECTRIFIED A NATION CONFUSED AND DEMORALIZED BY TWO YEARS OF CONVULSIVE POLITICAL SCANDAL BUT IT IS ALSO RAISING SERIOUS QUESTIONS ABOUT MR BERLUSCONI HIMSELF THE MOST PROMINENT ITALIAN ENTREPRENEUR TO HAVE ESCAPED THE CORRUPTION CHARGES THAT HAVE ENSNARED HUNDREDS OF OTHERS INCLUDING HIS BROTHER IS HE GETTING INTO POLITICS TO SAVE ITALY AS HE CLAIMS OR BECAUSE HE IS TRYING TO SAVE HIS HEAVILY INDEBTED BUSINESS EMPIRE AS HIS CRITICS CHARGE WOULD THE POLITICAL VICTORY OF A MAN WHO CONTROLS 90 OF THE NATION'S COMMERCIAL TV AS WELL AS NEWSPAPERS MAGAZINES AND A PUBLISHING HOUSE CONCENTRATE TOO MUCH POWER IN ONE PAIR OF HANDS AND COULD SOMEONE WHOSE BUSINESS BENEFITED FROM POLITICAL CONNECTIONS TACKLE THE ISSUE AT THE ROOT OF ITALY'S WOES THE INCESTUOUS LARGELY CORRUPT RELATIONSHIP BETWEEN POLITICS AND BUSINESS SUCH QUESTIONS ARE DOMINATING THE ELECTION CAMPAIGN OVERSHADOWING DEBATE ABOUT THE PRESSING POLITICAL AND ECONOMIC ISSUES THE NEXT GOVERNMENT MUST ADDRESS AT THE SAME TIME EVEN MR BERLUSCONI'S DETRACTORS ACKNOWLEDGE HE HAS TAPPED A DEEPSEATED NEED IN ITALIAN SOCIETY IN A COUNTRY THAT ONLY A FEW MONTHS AGO LOOKED SET TO STEER A LEFTIST POLITICAL COURSE MR BERLUSCONI 57 YEARS OLD IS SUDDENLY OFFERING A FREEMARKET ALTERNATIVE NEVER BEFORE SEEN IN ITALY HIS POLICY PROPOSALS LARGELY AIMED AT THE MIDDLE CLASS INCLUDE TAX CUTS PRIVATIZATION OF THE HEALTH AND SCHOOL SYSTEMS AND AN END TO MILES OF RED TAPE FOR MANY HE IS NOT ITALY'S ANSWER TO ROSS PEROT SO MUCH AS A CROSS BETWEEN DONALD TRUMP AND MARGARET THATCHER A FLASHY SELFMADE SHOWMAN WHO VOWS HE WILL BREAK WITH ITALY'S STATIST PAST I WOULDN'T BET MUCH MONEY ON THE ALTRUISM OF MR BERLUSCONI SAYS RICCARDO LEVI A MILAN POLITICAL ANALYST STILL HIS MOVE INTO POLITICS DOES RESPOND TO A REAL NEED OF ITALIAN SOCIETY HE IS MORE THAN JUST A MEDIA CREATION ADDS ROBERTO LASAGNA THE FORMER HEAD OF THE SAATCHI & SAATCHI ADVERTISING AGENCY IN ITALY WHO IS MR BERLUSCONI'S CAMPAIGN MANAGER BERLUSCONI IS FILLING WHAT WAS THE MOST HORRENDOUS MARKET GAP YOU HAVE EVER SEEN IN YOUR LIFE THE EMERGENCE OF MR BERLUSCONI'S FORZA ITALIA MOVEMENT HAS CERTAINLY TURNED POLITICS UPSIDE DOWN THE LAST POLLS PUBLISHED BEFORE VOTING SHOW HIS RIGHTWING ALLIANCE WHICH INCLUDES NEOFASCISTS AND NORTHERN SEPARATISTS WILL LEAD THE VOTING WITH A THIRD OF THE BALLOTS JUST BEHIND IS A LEFTIST ALLIANCE HEADED BY FORMER COMMUNISTS AND BEHIND THEM WHAT REMAINS OF DISCREDITED CENTRIST PARTIES MR BERLUSCONI HAS RAILED AGAINST THE FOREIGN PRESS AND HE DECLINED TO BE INTERVIEWED BUT FORMER EXECUTIVES OF FININVEST SPA THE HOLDING COMPANY HE OWNS DESCRIBE HIM AS A RESTLESS PIONEER WITH ABUNDANT CHARM AND MORE THAN A TOUCH OF VANITY ONE SAYS MR BERLUSCONI ALMOST CANCELED A BRITISH TV INTERVIEW A FEW YEARS AGO BECAUSE HE FEARED THE CAMERA MIGHT FOCUS ON HIS PAUNCH ANOTHER TIME HE PRESSURED AN ITALIAN MAGAZINE TO STOP THE PRINT RUN OF AN ISSUE THAT FEATURED HIS PICTURE ON THE COVER BECAUSE OF AN UNFLATTERING SHADOW PEOPLE WHO KNOW HIM SAY HE IS TOUCHY ABOUT HIS THINNING HAIR AND MODERATE HEIGHT ABOVE ALL SAY FORMER ASSOCIATES MR BERLUSCONI IS EAGER TO PLEASE AND QUICK TO TAKE OFFENSE WHEN HIS COMPANY ACQUIRED A BIG ITALIAN RETAIL CHAIN IN 1988 HE SENT FLOWERS TO EVERY WOMAN ON THE STAFF BUT ITALIAN JOURNALISTS COVERING HIS CAMPAIGN COMPLAIN ABOUT A BUNKER MENTALITY MR BERLUSCONI WON'T GIVE THEM INTERVIEWS IF HE DOESN'T LIKE THE QUESTIONS WHICH HAVE TO BE SUBMITTED IN ADVANCE HIS TWO LOVES SOCCER AND SHOW BUSINESS PLAY A BIG PART IN HIS POLITICS MR BERLUSCONI OWNS ITALY'S MOST SUCCESSFUL SOCCER TEAM AC MILAN AND THE NAME OF HIS POLITICAL MOVEMENT FORZA ITALIA IS A SOCCER CHANT THAT ROUGHLY TRANSLATES AS GO ITALY THE ENTIRE STRUCTURE OF FORZA ITALIA MODELS THAT OF SOCCER FAN CLUBS AND FANS ARE AN IMPORTANT BLOC OF ITS VOTERS MR BERLUSCONI HAS THE KING MIDAS TOUCH HE TURNS EVERYTHING HE TOUCHES INTO GOLD SAYS PIETRO FERRARI A FORMER CANTEEN DIRECTOR IMAGINE IF THIS HAPPENED WITH STATE FINANCES MR BERLUSCONI'S CAMPAIGN ALSO OWES A LOT TO TV GAME SHOWS AT THE PALERMO RALLY GIANT SCREENS IN THE HALL AND OTHER LOCATIONS THROUGHOUT THE NATION ALTERNATED HIS SPEECH WITH TOURISTBROCHURE FOOTAGE OF PRETTY ITALIAN TOWNS THE RALLY ENDED LIKE AN OVERSIZED KARAOKE PARTY WITH EVERYONE RISING TO SING THE FORZA ITALIA SONG ITS UPBEAT WORDS IT'S TIME TO BELIEVE WERE FLASHED ON THE SCREENS MR BERLUSCONI'S VISION OF THE FUTURE IS MOST EVIDENT IN MILANO 3 A SUBURBAN SATELLITE CITY HE BUILT A HALFHOUR'S DRIVE FROM MILAN WITH ITS ORANGEBROWN APARTMENT BLOCKS LAID OUT AROUND AN ARTIFICIAL LAKE AND WELLTENDED FLOWER BEDS MILANO 3 WOULDN'T BE OUT OF PLACE IN FLORIDA FOR ITALY THOUGH IT'S A BRAND NEW CONCEPT WITH ITS EMPHASIS ON SAFETY CONVENIENCE AND MIDDLECLASS COMFORT IT EMBODIES MR BERLUSCONI'S PROMISE OF CLEAN LIVING THE 3300 APARTMENTS ARE PROTECTED BY A COMPUTER SECURITY SYSTEM AND PRIVATE GUARDS IN CONTRAST TO THE HURLYBURLY OF MOST ITALIAN TOWNS THERE IS NO LITTER NO HAWKING AND LITTLE NOISE APART FROM THE SPLASH OF A WATERFALL IN THE CENTRAL AREA WHERE QUAINT STORES AND RESTAURANTS ARE LOCATED WHILE SOME CALL MILANO 3 STERILE AND SOULLESS MOST RESIDENTS SEEM TO LIKE IT AND THE MAN WHO CREATED IT WE NEED THE AMERICAN DREAM HERE WHY SHOULD ONLY AMERICA HAVE IT ASKS RICCARDO PISTOIA AN AEROBICS INSTRUCTOR OTHERS HAVE DOUBTS WHILE NO ONE CAN ARGUE WITH FORZA ITALIA'S CALLS FOR MORE WEALTH MORE JOY MORE SOLIDARITY AND MORE HAPPINESS WROTE PARISH PRIEST FRANCO CECCHIN IN HIS NEWSLETTER LIFE IS MORE COMPLEX THAN AN AD MILANO 3 IN FACT ISN'T AS SQUEAKYCLEAN AS MR BERLUSCONI WOULD LIKE HIS BROTHER PAOLO WAS CHARGED IN FEBRUARY WITH PAYING 680000 IN BRIBES TO SMOOTH THE SALE OF THREE BUILDINGS TO A PENSION FUND RUN BY ITALY'S MAIN STATEOWNED SAVINGS BANK PAOLO BERLUSCONI DENIES ANY WRONGDOING SAYING IT WAS JUST A COMMISSION PAYMENT SILVIO BERLUSCONI DISMISSES SPECULATION ABOUT HIS OWN AFFAIRS AND ALL OTHER CRITICISM AS LIES PUT OUT BY POLITICAL FOES TO STRESS HOW CLEAN HIS MOVEMENT IS HE PICKED PEOPLE WITH NO POLITICAL EXPERIENCE AS FORZA ITALIA CANDIDATES A FININVEST PUBLICRELATIONS COMPANY TRAINED THE CHOSEN 267 IN PUBLIC SPEAKING ONE OF THE CHIEF CRITICISMS OF MR BERLUSCONI IS HOW HE HAS USED HIS BUSINESS EMPIRE TO FURTHER HIS POLITICAL AIMS TO AVOID CONFLICTS OF INTEREST HE HAS STEPPED DOWN AS HEAD OF FININVEST BUT THE COMPANY IS STILL PLAYING A KEY ROLE IN THE CAMPAIGN WHEN MR BERLUSCONI ANNOUNCED HIS ENTRY INTO POLITICS HIS TV STATIONS SHOWED THE ENTIRE 80MINUTE SPEECH FORZA ITALIA WORKS OUT OF THE MILAN OFFICE OF A FININVEST MARKETING FIRM AND RELIES ON OTHER PARTS OF THE GROUP FOR EVERYTHING FROM POLLING DATA TO CAMPAIGN ADVERTISING THE BERLUSCONI PHENOMENON IS THE CULMINATION OF A PROCESS THAT'S BEEN GOING ON FOR 30 YEARS IN ITALY WHERE THE DISTINCTION BETWEEN PUBLIC AND PRIVATE HAS BECOME INCREASINGLY BLURRED SAYS PATRICK MCCARTHY PROFESSOR OF POLITICAL SCIENCE AT THE JOHNS HOPKINS CENTER IN BOLOGNA NOW YOU HAVE A BUSINESSMAN BIDDING FOR THE WHOLE PUBLIC LOT HIMSELF THE INTERTWINING OF MR BERLUSCONI'S BUSINESS AND POLITICAL INTERESTS ISN'T UNLAWFUL BUT HIS LEFTWING OPPONENTS HAVE PROMISED TO CURB HIS MEDIA POWER IF THEY WIN OFFICE TAKING AWAY ONE OF HIS THREE TV STATIONS AND BREAKING HIS HOLD ON THE TV ADVERTISING MARKET THAT WOULD DEAL A SEVERE BLOW TO FININVEST'S FINANCES AS IT IS FORMER EXECUTIVES SAY MR BERLUSCONI IS PAYING THE PRICE FOR RAPID EXPANSION FINANCED HEAVILY BY DEBT DURING THE 1980S MR BERLUSCONI BUILT WHAT HAD STARTED OUT AS A REALESTATE FIRM INTO A MAMMOTH CORPORATION WITH SALES OF 7 BILLION THAT INCLUDES FINANCIALSERVICES COMPANIES ITALY'S BIGGEST ADVERTISING AGENCY ITS LARGEST PUBLISHER THE STANDA SUPERMARKET CHAIN AND THE STATIONS DETAILED ACCOUNTS OF FININVEST'S FINANCES AREN'T PUBLICLY AVAILABLE BUT IT SAYS ITS NET DEBT IN 1993 TOTALED ABOUT 22 BILLION 10 TIMES THE AMOUNT IN 1988 THE GROUP HASN'T GIVEN DETAILS OF ITS CASH FLOW IN 1993 BUT IN 1992 IT AMOUNTED TO JUST OVER ONE THIRD OF ITS DEBT THERE ARE TWO RECENT INDICATIONS THAT THE GROUP MAY BE IN DIFFICULTY FININVEST'S AUDITORS ARTHUR ANDERSEN & CO HAD SEVERAL MAJOR RESERVATIONS WHEN IT SIGNED OFF ON THE COMPANY'S 1992 ACCOUNTS COMPLAINING ABOUT ACCOUNTING METHODS USED IN RESPECT TO HUNDREDS OF BILLIONS OF LIRE LISTED AS TAX GAINS AND ASSETS PLANS TO TAKE PART OF THE COMPANY PUBLIC LAST YEAR WERE CANCELED ONE FORMER MANAGER FAMILIAR WITH THE AFFAIR SAYS THE INVESTMENT BANK INVOLVED GOLDMAN SACHS INTERNATIONAL GOT COLD FEET AT THE LAST MINUTE A GOLDMAN SPOKESMAN IN LONDON DECLINES COMMENT MR BERLUSCONI'S POLITICAL FRIENDS ARE ANOTHER GRAY AREA WHILE HE NOW CRUSADES AS A FREEMARKETEER HIS CONNECTIONS WITH BETTINO CRAXI A FORMER SOCIALIST PRIME MINISTER WERE CRUCIAL TO HIS BUSINESS IN THE EARLY 1980S MR CRAXI ACCORDING TO FORMER FININVEST EXECUTIVES HELPED MR BERLUSCONI BREAK THE STATE TV MONOPOLY A DECISIVE MOMENT THAT ENABLED HIM TO ESTABLISH HIS COMMERCIALTV EMPIRE FOR ALL THE SNIPING MR BERLUSCONI HAS A LOT OF SUPPORTERS INCLUDING MARIELLA SCIREA THE WIDOW OF ITALIAN SOCCER STAR GAETANO SCIREA WHO WAS KILLED IN A CAR CRASH IN 1989 SHE IS TYPICAL OF THE NEW FACES MR BERLUSCONI IS TRYING TO BRING TO ITALIAN POLITICS BERLUSCONI DIDN'T NEED TO GET INTO POLITICS TO SAVE HIS INTERESTS SHE SAYS I THINK HE'S VERY COURAGEOUS MR BERLUSCONI CONTACTED HER PERSONALLY TO ASK IF SHE WANTED TO BE A CANDIDATE AND SHE JUMPED AT THE CHANCE HE'S VERY SINCERE HE SAID WE NEED NEW PEOPLE WHO HAVE A CLEAN FACE MRS SCIREA SAYS HER VOICE CROAKY FROM CAMPAIGNING ON THE WALL OF HER OFFICE IS A FRAMED POSTER OF JOHN F KENNEDY IN 1959 TITLED THE LONELINESS OF A PRESIDENTIAL CAMPAIGN MRS SCIREA IS RUNNING IN A WORKINGCLASS DISTRICT OUTSIDE TURIN AGAINST A WELLKNOWN ANTIMAFIA CAMPAIGNER AND IS OFTEN PUT ON THE DEFENSIVE BY QUESTIONS ABOUT HER BOSS ALTHOUGH HER ANSWERS ARE FIRM THE ISSUE WON'T GO AWAY ONE EVENING SHE AND A FELLOW CANDIDATE ANGELO BURZI HOLD A COCKTAIL RECEPTION IN A CAFE FOR ABOUT 50 POTENTIAL SUPPORTERS MOST OF THEM LOCAL BUSINESS PEOPLE PLAY THE DEVIL'S ADVOCATE MR BURZI URGES THEM THE FIRST QUESTIONER A MIDDLEAGED SHOPKEEPER NEEDS NO PROMPTING BERLUSCONI OBVIOUSLY ENTERED INTO POLITICS TO SAVE HIS EMPIRE HE SAYS FLATLY SETTING OFF A BIG ARGUMENT THAT LASTS 15 MINUTES AND IS NEVER RESOLVED 9403240052 940324 BUSINESS BRIEF DOMTAR INC DIVISION TO FORM NEW FIRM THROUGH PUBLIC OFFERING DOMTAR INC SAID IT PLANS TO FORM A SEPARATE COMPANY FROM ITS GROUNDWOOD PRINTING PAPERS DIVISION AND SELL IT THROUGH A PUBLIC OFFERING IN CANADA TERMS HAVEN'T BEEN SET BUT DOMTAR EXPECTS TO GET MORE THAN THE BUSINESS'S BOOK VALUE OF 193 MILLION CANADIAN DOLLARS US1411 MILLION SAID PIERRE FITZGIBBON DOMTAR'S NEW CHIEF FINANCIAL OFFICER THE NEW COMPANY TO BE CALLED ALLIANCE FOREST PRODUCTS INC COMPRISES TWO PAPER MILLS AND TWO SAWMILLS IN QUEBEC THE BUSINESS LAST YEAR HAD REVENUE OF ABOUT C260 MILLION MR FITZGIBBON SAID DOMTAR A MONTREALBASED MAKER OF FOREST PRODUCTS MELAMINE PANELS AND GYPSUM PRODUCTS SAID THE MOVE FITS ITS STRATEGY OF FOCUSING ON FEWER SECTORS PROCEEDS FROM THE TRANSACTION TO CLOSE IN MAY ARE TO BE USED FOR INVESTMENTS AND TO REDUCE DEBT DOMTAR SAID PIERRE MONAHAN IS RESIGNING AS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER TO BECOME PRESIDENT AND CHIEF EXECUTIVE OF ALLIANCE FOREST PRODUCTS HE IS SUCCEEDED BY MR FITZGIBBON WHO HAD BEEN VICE PRESIDENT CORPORATE DEVELOPMENT AND TREASURER 9403240051 940324 MARKETING BRIEF NOTED GROWING NETWORK THE PARAMOUNT NETWORK A BROADCAST NETWORK PARAMOUNT COMMUNICATIONS INC AND CHRISCRAFT INDUSTRIES INC PLAN TO LAUNCH IN JANUARY 1995 SAID IT SIGNED TWO MORE AFFILIATES KUSITV IN SAN DIEGO AND WFTETV IN LOUISVILLE KY PARAMOUNT WAS RECENTLY ACQUIRED BY VIACOM INC 9403240050 940324 POLITICS & POLICY BUDGET DEBATE TRAPS LAWMAKERS WHIPSAWED BETWEEN NOBLE IDEALS AND ALL THOSE PET PROJECTS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEN PAUL SIMON OF ILLINOIS WANTS TO CUT THE BUDGET DEFICIT JUST NOT SUBSIDIES FOR MASS TRANSIT SEN JAMES EXON OF NEBRASKA WANTS TO STEM THE RED INK TOO AS LONG AS DEFENSE ISN'T HIT TOO HARD THE SENATE BUDGET COMMITTEE CHAIRMAN JIM SASSER OF TENNESSEE WANTS A CONSTITUTIONAL AMENDMENT TO FORCE A BALANCED BUDGET AT LEAST WHILE HE'S RUNNING FOR REELECTION THIS FALL BUT HE DOESN'T WANT TO START BALANCING IT ANYTIME SOON THERE'S NOTHING LIKE A CONGRESSIONAL BUDGET DEBATE TO EXPOSE THE GAP BETWEEN WHAT LAWMAKERS SAY AND WHAT THEY DO AS THE SENATE DEBATES THE BLUEPRINT FOR PRESIDENT CLINTON'S 15 TRILLION 1995 BUDGET MEMBERS FROM BOTH PARTIES ARE LOUDLY UNDERSCORING THE FOREMOST MAXIM OF THE BUDGETWRITING PROCESS ANYBODY CAN VOTE FOR CUTS CRACKS VETERAN DEMOCRATIC SEN PATRICK LEAHY OF VERMONT AS LONG AS IT'S IN THE ABSTRACT THAT'S WHY THIS YEAR'S BUDGET DEBATE UNTIL NOW UNEVENTFUL HAS SUDDENLY TURNED INTO A GAME THAT SEN KENT CONRAD A NORTH DAKOTA DEMOCRAT CALLS PASS THE POTATO IN THE SENATE BUDGET COMMITTEE LAST WEEK SENATORS OFFERED 10 AMENDMENTS TO REDUCE SPENDING ON SPECIFIC PROGRAMS FROM THE SPACE STATION TO ENERGY ASSISTANCE FOR THE POOR EVERY ONE OF THEM WAS DEFEATED THEN MR EXON A DEMOCRAT AND SEN CHARLES GRASSLEY OF IOWA A REPUBLICAN TRIED A DIFFERENT APPROACH AN AMENDMENT CUTTING 26 BILLION OVER FIVE YEARS FROM NO PROGRAM IN PARTICULAR THAT PASSED AS A RESULT ALL FACTIONS ARE NOW JOCKEYING ON THE SENATE FLOOR TO ENSURE THAT THEIR PET PROGRAMS DON'T SUFFER FEARING LIBERALS WILL GOUGE THE DEFENSE BUDGET REPUBLICAN PETE DOMENICI OF NEW MEXICO AND CONSERVATIVE DEMOCRAT SAM NUNN OF GEORGIA WHO CHAIRS THE ARMED SERVICES COMMITTEE PROPOSED SHIFTING MOST OF THE EXONGRASSLEY CUTS FROM DISCRETIONARY PROGRAMS THOSE FOR WHICH CONGRESS SETS ANNUAL APPROPRIATIONS LEVELS TO ENTITLEMENT PROGRAMS LIKE MEDICARE WHERE THE MONEY GOES TO ANYONE WHO QUALIFIES BUT LEADING DEMOCRATS WORKED YESTERDAY TO FEND OFF THAT PLAN BY ARGUING IT WOULD STEAL MONEY FROM THEIR TOP PRIORITY HEALTHCARE REFORM WE ALL HAVE DIFFERENT PRIORITIES EXPLAINS SEN SIMON WHO BACKED THE EXONGRASSLEY CUTS BUT OPPOSED THE DOMENICINUNN PROPOSAL THE PROBLEM WITH THE PRESENT SYSTEM IS THAT ALL OF OUR PRIORITIES PREVAIL FOR PRESIDENT CLINTON THE PROBLEM WITH EXTRA CUTS IS THAT ALL HIS PRIORITIES ARE UNDER PRESSURE VULNERABLE FROM THE RIGHT ON DEFENSE ISSUES THE PRESIDENT INSISTED IN HIS STATE OF THE UNION ADDRESS THAT THE PENTAGON COULDN'T BE CUT ANY FURTHER HE ALSO CONFESSED THAT HIS LONGTERM ECONOMIC PROGRAMS CANNOT WORK WITHOUT SPENDING INITIATIVES TO IMPROVE EDUCATION INFRASTRUCTURE TECHNOLOGY AND JOB TRAINING AND ANY NEW MEDICARE REDUCTIONS WOULD COMPLICATE THE FINANCING OF HIS HEALTHREFORM PLAN WHICH IS ALREADY IN JEOPARDY DO YOU WANT A GOVERNMENT OR DON'T YOU WANT A GOVERNMENT COMPLAINS SEN BARBARA MIKULSKI D MD WHO THINKS THE PRESIDENT'S BUDGET SHRUNK ENOUGH BEFORE EXTRA CUTS WERE ADDED YET FEW OF MS MIKULSKI'S DEMOCRATIC COLLEAGUES ARE FEELING BOLD ENOUGH TO PRESS THE QUESTION MR SASSER WHIPSAWED BETWEEN HIS FEALTY TO MR CLINTON'S PROGRAM AND THE NEED TO PRESERVE HIS ELECTIONYEAR POPULARITY IN TENNESSEE ISN'T IN POSITION TO FIGHT DAYS AFTER BACKING THE BALANCEDBUDGET AMENDMENT HE ARGUED IN COMMITTEE AGAINST ADDITIONAL DEFICIT REDUCTION THIS YEAR BY WARNING IT WOULD DAMAGE THE ECONOMY BUT HE ISN'T OFFERING AN AMENDMENT RESTORING THE CUTS IN A SIMILAR TWOSTEP LAST YEAR THE BUDGET CHAIRMAN VOTED FOR A DOOMED ATTEMPT TO REPEAL SOME OF THE VERY TAX INCREASES HE FOUGHT TO PASS AS PART OF MR CLINTON'S ECONOMIC PROGRAM EVEN APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD OF WEST VIRGINIA AN UNABASHED DEFENDER OF CONGRESSIONAL SPENDING WITH NO REELECTION WORRIES APPARENTLY DECIDED A STRAIGHTFORWARD MOVE TO RESTORE THE CUTS WAS POINTLESS THOUGH MANY SENATORS PROBABLY A MAJORITY WISH THE EXTRA CUTS HAD NEVER COME UP ONLY A FRACTION ARE WILLING TO VOTE AGAINST THEM AN EMBARRASSING ATTEMPT MIGHT THEN MAKE IT MORE DIFFICULT FOR DEMOCRATIC LEADERS TO QUIETLY SCUTTLE OR DILUTE THE CUTS IN SUBSEQUENT NEGOTIATIONS WITH THE HOUSE WHICH DIDN'T ADD EXTRA CUTS IN ITS BUDGET RESOLUTION THE ATTEMPTS LIBERALS DID MAKE YESTERDAY TO SNATCH MONEY BACK FOR THEIR FAVORED PROGRAMS ILLUSTRATED THE DILEMMA DEMOCRAT CHRISTOPHER DODD OF CONNECTICUT SOUGHT TO RESTORE 224 BILLION IN EDUCATION FUNDS OVER FIVE YEARS FOR THE MOST SYMPATHETIC OF CONSTITUENCIES THE DISABLED BUT MR DODD CALLED FOR FINANCING THE SHIFT WITH A SPECIFIC CUT OF THE PENTAGON'S MILSTAR SATELLITE PROGRAM AS WELL AS REDUCTIONS IN INTELLIGENCE PROGRAMS AND SHAVING BACK THE DISCRETIONARY CUTS PROPOSED BY SENS EXON AND GRASSLEY HE LOST LOPSIDEDLY SEN BARBARA BOXER D CALIF BY CONTRAST SOUGHT TO ADD FUNDS FOR CHILDREN'S PROGRAMS WITH A VAGUE CALL FOR CUTS IN UNNECESSARY TRAVEL BY FEDERAL OFFICIALS SHE WON 935 IF YOU CAN PUT SOME MONEY IN A PROGRAM AND TAKE IT OUT OF NOWHERE OUT OF THE ATMOSPHERE YOU CAN WIN SAYS SEN TOM HARKIN D IOWA ACTION ON REMAINING BUDGET ISSUES CAME TO A HALT LAST NIGHT WHEN SEN JESSE HELMS R NC UPSET THAT A SCHOOLPRAYER PROVISION HAD BEEN DROPPED FROM AN UNRELATED EDUCATION BILL IN EFFECT LAUNCHED A FILIBUSTER ONE REASON THE WHITE HOUSE SUDDENLY FINDS ITSELF ON THE DEFENSIVE IS THAT SOME ADMINISTRATION OFFICIALS HAVE SUGGESTED THAT LAST YEAR'S FIVEYEAR 500 BILLION DEFICITREDUCTION PROGRAM WAS ALL THE DEFICITCUTTING THEY NEED IN MR CLINTON'S FIRST TERM YET PROJECTIONS SHOW HEALTHBENEFIT PROGRAMS WIDENING THE DEFICIT ONCE AGAIN BY THE END OF THE DECADE THAT LEAVES DEFICIT HAWKS LITTLE CHOICE BUT TO MOUNT THE SORT OF GUERRILLA ATTACK THAT MATERIALIZED IN THE BUDGET COMMITTEE LAST WEEK EVEN IF IN THE CASE OF DEMOCRATS IT TIES THEIR OWN PARTY IN KNOTS OF COURSE IT'S NOT JUST POLITICIANS WHO STRUGGLE WITH UNRESOLVED CONTRADICTIONS ON THE BUDGET THE SAME AMERICANS WHO TELL POLLSTERS THEY WANT A BALANCED BUDGET ARE CERTAIN TO PROTEST WHEN THEIR HOMESTATE PROGRAMS GET GORED THAT PROSPECT THAT ANGRY VOTERS WILL HOWL WHEN A BOW TO AUSTERITY GETS TRANSLATED INTO CUTBACKS AT SOMEBODY'S DEFENSE BASE HEAD START PROGRAM OR DOCTOR'S OFFICE REPRESENTS THE REAL HOPE FOR PROTECTING MR CLINTON'S SPENDING PROPOSALS IN THE MONTHS AHEAD GRASSLEY'S ON THE RIGHT TRACK SAYS CONSERVATIVE SEN ALAN SIMPSON OF WYOMING THE REPUBLICAN WHIP BUT HE ADDS THE TRACK JUST LEADS OUT INTO THE DESERT OUT IN THE DESERT THE CONSTITUENCY GROUPS ARE LYING IN THE SAND JUST WAITING TO SHOOT YOU IN THE REAR END WHILE MUCH OF THE BUDGETCUTTING FOCUS IS ON DISCRETIONARY SPENDING PROGRAMS ITS THE ENTITLEMENTS SUCH AS SOCIAL SECURITY AND MEDICARE THAT REALLY EAT UP TAX DOLLARS 9403240049 940324 PEPPERAND SALT HAVE REVISED THAT FAMILIAR SAYING IT'S WHAT YOU GET PAID FOR PLAYING WHAT IN SCHOOL WAS MY GREAT REWARD FROM ERASING EVERY BLACKBOARD 9403240048 940324 KEMPER HAS A TOUGH FIGHT ON ITS HANDS AGAINST GE BY GREG STEINMETZ AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL KEMPER CORP CHAIRMAN DAVID MATHIS HAS SPENT TWO YEARS RESHAPING AND IMPROVING THE COMPANY BUT IT TOOK GE CAPITAL CORP JUST MINUTES TO BOOST KEMPER'S FLAGGING STOCK PRICE 50 FACING A 55ASHARE OFFER FROM GE CAPITAL MR MATHIS NOW MUST CONVINCE KEMPER SHAREHOLDERS THAT HE CAN SERVE THEM BETTER IN THE FUTURE THAN THE GENERAL ELECTRIC CO UNIT ALREADY HAS THAT MIGHT BE IMPOSSIBLE THEY CAN'T JUST SAY NO AND EXPECT GE TO WALK AWAY SAID MARTIN SASS PRESIDENT OF MD SASS INVESTORS SERVICE A BIG KEMPER SHAREHOLDER NEVERTHELESS JUST SAY NO IS ABOUT ALL KEMPER HAS DONE SO FAR IN ITS EFFORT TO ESCAPE GE CAPITAL'S CLUTCHES MANY ANALYSTS ARGUE THAT KEMPER'S BID TO REMAIN INDEPENDENT IS HOPELESS WITH ITS TRIPLEA CREDIT RATING AND A MOUNTAIN OF CASH THEY BELIEVE GE IS SIMPLY TOO MIGHTY TO BE DEFEATED THE BEST KEMPER CAN HOPE FOR THEY SAY IS TO STALL IN THE HOPES THAT GE AND ITS AGGRESSIVE CHAIRMAN JOHN WELCH WILL SIMPLY GO AWAY RATHER THAN CONTINUE TO PRESS THEIR 22 BILLION BID THE ONE THING THAT MIGHT ALLOW KEMPER TO STALL LIKE THAT IS GE'S APPARENT RELUCTANCE TO MAKE AN OUTRIGHT HOSTILE TENDER OFFER FOR KEMPER SHARES GE HAS REPEATED TIME AND AGAIN THAT IT WOULD NEVER DO A HOSTILE TAKEOVER AND AN OUTRIGHT TENDER OFFER FOR KEMPER WOULD BE A VERY PUBLIC BREACH OF THAT PLEDGE IF GE DID THAT EVERY CHIEF EXECUTIVE WHO HAD LUNCH WITH JACK WELCH WOULD HAVE TO WORRY ABOUT GE DOING A HOSTILE DEAL SAID ONE INVESTMENT BANKER BUT GE AND JACK WELCH ARE NOTHING IF NOT TENACIOUS THE NEXT TEST IN THE BATTLE OF WILLS IS LIKELY TO COME AT KEMPER'S SHAREHOLDER MEETING MAY 11 WITHIN A WEEK GE IS EXPECTED TO ANNOUNCE A PROXY FIGHT IN WHICH IT IS EXPECTED TO PROPOSE A SHAREHOLDER RESOLUTION DEMANDING KEMPER PUT ITSELF UP FOR SALE IT COULD ALSO TRY TO GET ITS OWN PEOPLE ELECTED TO KEMPER'S BOARD FOR KEMPER TO WIN A PROXY FIGHT IT WOULD HAVE TO CONVINCE SHAREHOLDERS THAT THEY COULD EARN MORE MONEY BY STICKING WITH MANAGEMENT AND SHAREHOLDERS SAY THEY'RE WILLING TO LISTEN TO WHATEVER ARGUMENTS KEMPER CAN MAKE WE DON'T FEEL WE'RE OBLIGED TO GO WITH THE HIGHEST BID' SAID LUTHER JONES MANAGER OF CORPORATE AFFAIRS FOR THE FLORIDA STATE BOARD OF ADMINISTRATION WHICH OWNS 457000 SHARES WE ARE INTERESTED IN LONGTERM VALUE INDEED GOLDMAN SACHS & CO IS PREPARING A STUDY TO SHOW KEMPER COULD DO JUST AS WELL ON ITS OWN THE THRUST OF KEMPER'S CASE WOULD BE WHAT MR MATHIS HAS ACCOMPLISHED AT THE COMPANY IN THE PAST TWO YEARS BY SELLING ITS REINSURANCE FIRM AND BUILDING LARGE RESERVES AGAINST BAD REALESTATE INVESTMENTS THE 56YEAROLD MR MATHIS HAS MADE THE COMPANY'S EARNINGS LESS VOLATILE AND CLEANED UP ITS BALANCE SHEET BUT THERE ARE STILL LINGERING CONCERNS ABOUT THE 17 BILLION REALESTATE PORTFOLIO THERE IS ALSO THE UNCERTAINTY ABOUT CONTINUING LIABILITIES AT KEMPER SECURITIES INC ITS BROKERAGE UNIT WHICH HAS BEEN PLAGUED BY LAWSUITS IN ADDITION TO OUTLINING A PLAN FOR GROWTH KEMPER MUST EXPLAIN IF IT HAS FULLY OVERCOME ITS PAST WHETHER A STRATEGIC VISION SPEAKS LOUDER THAN GE'S CASH IS DOUBTFUL ANALYSTS SAY INVESTORS AREN'T INTERESTED IN WHAT YOU WILL DO TWO YEARS FROM NOW SAID ONE INSURANCE STOCK ANALYST BEFORE KEMPER CAN CONVINCE MR JONES THE EXECUTIVE WITH THE FLORIDA PENSION FUND THE COMPANY WILL HAVE TO TALK A LOT MORE ABOUT SHAREHOLDER VALUE GE'S BID WHILE FAIRLY LOW DID PUT IN PLACE A BROAD OUTLINE OF A STRATEGIC RATIONALE FOR THE COMBINATION AS WELL AS PUTTING ON THE TABLE THE ISSUE OF SHAREHOLDER VALUE HE SAYS KEMPER TALKED ABOUT STRATEGIC ISSUES BUT NOT SO MUCH SHAREHOLDER VALUE THAT HAS TO BE FOCUSED ON A LITTLE BIT MORE PEOPLE CLOSE TO GE SUGGEST KEMPER MANAGEMENT MIGHT BE MORE CONCERNED ABOUT SHAREHOLDER VALUE IF THEY OWNED MORE SHARES DIRECTORS AND TOP EXECUTIVES OWNED 646947 SHARES OUT OF ABOUT 329 MILLION COMMON SHARES ACCORDING TO KEMPER'S MOST RECENT PROXY STATEMENT GE OWNS 100 SHARES WHICH IT BOUGHT AFTER ANNOUNCING ITS BID ON MARCH 14 AT&T VS FOR SOME INVESTORS AND WALL STREET DEALMAKERS THE TAKEOVER BATTLE BEARS SIMILARITIES TO AMERICAN TELEPHONE & TELEGRAPH CO'S BATTLE FOR NCR CORP IN LATE 1990 AT&T MADE AN UNSOLICITED 61 BILLION BID FOR NCR WHICH WAS REJECTED BY THAT COMPANY'S BOARD AT&T THEN BEGAN A PROXY BATTLE TRYING TO UNSEAT FOUR DIRECTORS IT ALSO PROPOSED A SPECIAL SHAREHOLDER MEETING IN WHICH IT RECOMMENDED AN ALTERNATIVE LIST OF DIRECTORS BOARDS AND MANAGEMENTS ARE AGHAST AT THE PROSPECTS OF BEING OUSTED BY SHAREHOLDERS AFTER FIGHTING TOOTH AND NAIL FOR NEARLY FOUR MONTHS NCR SUCCUMBED TO PRESSURE FOUR DAYS BEFORE ITS SHAREHOLDER MEETING AND OPENED UP DISCUSSIONS WITH AT&T IT EVENTUALLY SOLD FOR A SWEETENED OFFER OF 748 BILLION FOR NCR SHAREHOLDERS THE COMPANY'S JUST SAY NO DEFENSE SERVED A PURPOSE COAXING AT&T TO RAISE ITS BID NCR WAS ABLE TO EXTRACT AN EXTRA 20 A SHARE FOR SHAREHOLDERS OR ABOUT 136 BILLION BUT THE STRATEGY COULDN'T BLOCK A WELLFINANCED BIDDER WHO WAS WILLING TO PUT THE TIME AND RESOURCES INTO THE ACQUISITION KEMPER MIGHT ALSO TRY TO PERSUADE REGULATORS TO BLOCK OR AT LEAST DELAY ANY TAKEOVER BUT REGULATORS MIGHT NOT BE THE STAUNCHEST ALLIES THE COMPANY COULD HAVE THEIR CHIEF CONCERN IS INSURANCECOMPANY SOLVENCY AND A BID FROM A ROCKSOLID SUITOR LIKE GE WOULD LOOK AWFULLY ATTRACTIVE TO REGULATORS CONSIDERING KEMPER'S LOWER CREDIT RATING I THINK REGULATORS WOULD WELCOME GE WITH OPEN ARMS SAID ONE INVESTMENT BANKER THEY MIGHT VIEW THIS AS SALVATION YET ANOTHER WILD CARD IS THE ROLE PLAYED BY SHAREHOLDERS IN KEMPER'S MUTUAL FUNDS KEMPER HAS CONTRACTS TO MANAGE THE FUNDS AND MUTUALFUND SHAREHOLDERS COULD VOTE TO END THOSE CONTRACTS IF THEY DON'T LIKE GE BUT GIVEN THAT GE AND ITS PENSION FUND HAVE A SOLID TRACK RECORD FOR MANAGING MONEY FUND SHAREHOLDERS LIKE REGULATORS MIGHT VIEW GE AS AN IMPROVEMENT KEMPER'S FUNDS HAVE PERFORMED WELL OVER THE LONG TERM BUT HAVE LAGGED RECENTLY ACCORDING TO A REPORT BY MERRILL LYNCH & CO ANALYST ALLEN NADLER ALL OF THAT MAKES IT INCREASING LIKELY THAT THE ONLY WAY KEMPER WILL BE ABLE TO ESCAPE GE IS BY FALLING INTO THE ARMS OF A WHITE KNIGHT A COMPANY OR AN INVESTOR WILLING TO TOP GE'S OFFER TROUBLE IS AS LONG AS KEMPER DENIES IT IS FOR SALE IT CAN'T SEEK SUCH A RESCUER AND IF IT DOES CONCEDE THAT IT IS FOR SALE THEN IT WOULD BE OBLIGATED TO TAKE THE HIGHEST OFFER THAT DOESN'T STOP INVESTMENT BANKERS FROM ACTIVELY SOLICITING WOULDBE ACQUIRERS TO TAKE ON GE IN A FIGHT OVER KEMPER AND A NUMBER ARE KNOWN TO BE HARD AT WORK SHOPPING KEMPER AROUND WALL STREET IS NOW DOING KEMPER'S WORK FOR THEM ANOTHER INVESTMENT BANKER SAID BUT THERE AREN'T THAT MANY COMPANIES READY WILLING AND ABLE TO BUY KEMPER AMERICAN INTERNATIONAL GROUP INC AND AMERICAN GENERAL CORP AS WELL AS INSURANCE INVESTOR JOHN BYRNE HAVE BEEN MENTIONED AS CAPABLE BUT UNLIKELY TO WANT TO ENTER A BIDDING CONTEST SEVERAL EUROPEAN INSURANCE COMPANIES ARE INTERESTED IN EXPANDING THEIR US PRESENCE BUT OBSERVERS SAY IT WOULD BE TOUGH FOR KEMPER TO CONVINCE SHAREHOLDERS THAT A EUROPEAN COMPANY COULD DO MORE FOR THEM THAN GE WHAT IT BOILS DOWN TO SAID JAMES RAMENDA AN INSURANCE ANALYST AT NORTHINGTON PARTNERS IS THAT GE IS AS STRONG A PARTNER AS YOU ARE GOING TO GET IF YOU'RE NOT HAPPY WITH GE WHO WOULD YOU BE HAPPY WITH 9403240047 940324 BUSINESS BRIEF TYCO'S TENDER OFFER FOR MARK CONTROLS TOPS DANAHER'S BID A WALL STREET JOURNAL NEWS ROUNDUP TYCO INTERNATIONAL LTD LAUNCHED A 19ASHARE TENDER OFFER VALUED AT 956 MILLION FOR MARK CONTROLS CORP TOPPING DANAHER CORP'S 1775ASHARE BID VALUED AT 893 MILLION EXTENDED LAST WEEK PRIOR TO TYCO'S PROPOSAL MARK CONTROLS A SKOKIE ILL INDUSTRIALVALVE MAKER SAID ITS DIRECTORS ADVISED SHAREHOLDERS TO ACCEPT DANAHER'S OFFER NOTING FAILURE TO RECOMMEND THE PURCHASE COULD JEOPARDIZE ITS AGREEMENT WITH DANAHER AND ALLOW THE WASHINGTONBASED AUTOPARTS MAKER TO TERMINATE ITS PACT MARK CONTROLS EARLIER SAID IT MIGHT BE INTERESTED IN A BID FROM A SUITOR OTHER THAN DANAHER AFTER TYCO THROUGH AN INFORMAL OVERTURE INDICATED IT WAS PREPARED TO PAY 19 A SHARE FOR THE COMPANY MARK CONTROLS MADE WHAT IT CHARACTERIZED AS A COUNTERPROPOSAL TO TYCO SUGGESTING TYCO MAKE A TENDER OFFER DIRECTLY TO HOLDERS WITHOUT FIRST ENTERING AN AGREEMENT WITH MARK CONTROLS WHICH MIGHT BREACH THE DANAHER PACT PRIOR TO ITS FORMAL OFFER MARK CONTROLS SAID IF TYCO AN EXETER NH EQUIPMENT MAKER MADE A BID OF 19 A SHARE OR HIGHER BY APRIL 4 MARK CONTROLS WOULDN'T TRIGGER ITS ANTITAKEOVER POISONPILL PROVISIONS MARK CONTROLS' SHARES CLOSED UNCHANGED AT 1925 IN TRADING ON THE NASDAQ STOCK MARKET 9403240046 940324 BUSINESS BRIEF RUBBERMAID INC MODEST SALES PROFIT GROWTH EXPECTED FOR FIRST QUARTER RUBBERMAID INC SAID IT EXPECTS FIRSTQUARTER SALES AND EARNINGS GROWTH TO BE IN THE LOW SINGLEDIGIT RANGE CITING SLUGGISH SALES DUE TO THE HARSH WEATHER IN JANUARY AND FEBRUARY ADDITIONALLY RUBBERMAID SAID THE CONTINUING CONSOLIDATION WITHIN THE RETAIL AND OFFICE PRODUCTS DISTRIBUTIONS CHANNELS CONSTRAINED SHORTTERM SALES DUE TO INVENTORY LIQUIDATION AND CUSTOMER RESTRUCTURING EFFORTS THE WOOSTER OHIO COMPANY SAID IT EXPECTED MORE FAVORABLE SALES AND EARNINGS IN THE SECOND QUARTER RUBBERMAID TOLD ANALYSTS THAT FIRSTQUARTER EARNINGS WOULD BE ABOUT 32 CENTS A SHARE IN THE 1993 FIRST QUARTER RUBBERMAID HAD EARNINGS OF 496 MILLION OR 31 CENTS A SHARE ON SALES OF 4837 MILLION IN THE 1993 SECOND QUARTER IT POSTED EARNINGS OF 506 MILLION OR 32 CENTS A SHARE ON SALES OF 4885 MILLION RUBBERMAID MAKES PLASTIC AND RUBBER PRODUCTS INCLUDING KITCHENWARE LAUNDRY AND BATH ACCESSORIES MICROWAVE OVENWARE OFFICE PRODUCTS AND CHILDREN'S TOYS 9403240045 940324 BUSINESS BRIEF INTERNATIONAL MULTIFOODS CORP DIVISION'S MEATS BUSINESS TO BE PURCHASED BY IBP INTERNATIONAL MULTIFOODS CORP MINNEAPOLIS SAID IT AGREED TO SELL THE MEATS BUSINESS OF ITS PREPAREDFOODS DIVISION TO IBP INC TERMS WEREN'T DISCLOSED THE COMPANY RECENTLY DISCLOSED THAT IT WOULD RECOGNIZE A PRETAX LOSS OF 22 MILLION ON THE PLANNED SALE FOR THE FISCAL FOURTH QUARTER ENDED FEB 28 BUT IT DIDN'T DISCLOSE THE BUYER AT THE TIME IN THE YEAREARLIER QUARTER THE FOODPROCESSING AND SPECIALTYDISTRIBUTION CONCERN EARNED 106 MILLION OR 55 CENTS A SHARE ON SALES OF 5371 MILLION INTERNATIONAL MULTIFOODS SAID THE DECISION TO SELL THE MEATS BUSINESS AS WELL AS THE RECENT AGREEMENT TO SELL ITS FROZEN SPECIALTYFOODS BUSINESS TO DOSKOCIL COS REFLECT ITS PLAN TO CONCENTRATE ON LINES IN WHICH IT HAS MARKET ADVANTAGES AND THE BEST OPPORTUNITIES FOR GROWTH BAKERY AND SPECIALTY DISTRIBUTION THE TRANSACTION IS EXPECTED TO BE COMPLETED IN LATE APRIL OR EARLY MAY 9403240044 940324 MARTIN MARIETTA PRESSURES GRUMMAN TO REJECT NORTHROP'S HOSTILE ADVANCES BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN MARIETTA CORP PRESSURED GRUMMAN CORP TO REJECT THE HOSTILE ADVANCES OF NORTHROP CORP BUT GRUMMAN RESPONDED THAT IT MUST AT LEAST PROVIDE INFORMATION TO NORTHROP SEPARATELY MARTIN MARIETTA WON THE CONCESSIONS IT SOUGHT FROM THE PENTAGON OVER GOVERNMENT SPACELAUNCH CONTRACTS CLEARING THE WAY FOR THE COMPANY TO COMPLETE ITS 208 MILLION ACQUISITION OF GENERAL DYNAMICS CORP'S ROCKET BUSINESS THE EXCHANGE OF LETTERS BETWEEN THE CHAIRMEN OF MARTIN MARIETTA AND GRUMMAN REVEALED IN FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION YESTERDAY OUTLINED THE FIRST DIFFERENCES BETWEEN THEM SINCE THE AGREEMENT MADE EARLIER THIS MONTH TO ALLOW MARTIN MARIETTA TO ACQUIRE GRUMMAN FOR 55 A SHARE OR 193 BILLION NORTHROP LATER MADE AN OFFER OF 60 A SHARE OR 204 BILLION WHICH IS CONSIDERED UNFRIENDLY IN A LETTER MONDAY TO GRUMMAN CHAIRMAN RENSO CAPORALI MARTIN MARIETTA CHAIRMAN NORMAN AUGUSTINE SAID HE BELIEVES THAT NORTHROP'S OFFER VIOLATES A STANDSTILL AGREEMENT THAT PROHIBITED NORTHROP FROM BIDDING FOR GRUMMAN HE SAYS HIS COMPANY ASSUMED NORTHROP WAS BARRED FROM BIDDING FOR GRUMMAN YESTERDAY MR CAPORALI WROTE BACK THAT HE BELIEVES GRUMMAN HAD NO CHOICE BUT TO AT LEAST PROVIDE NORTHROP WITH THE FINANCIAL INFORMATION IT SOUGHT WE WOULD WELCOME ANY THOUGHTS YOU HAVE ON THIS SUBJECT HE ADDED SINCE THE NORTHROP OFFER MUCH OF THE DEFENSE INDUSTRY HAS BEEN AWAITING THE NEXT MOVE BY MARTIN MARIETTA WHICH COULD INCREASE ITS OWN BID OR SIMPLY GIVE UP AND LET GRUMMAN BASED IN BETHPAGE NY MERGE WITH NORTHROP MARTIN MARIETTA COULD ALSO ATTEMPT ON ITS OWN OR IN LEAGUE WITH OTHER COMPANIES TO TAKE OVER NORTHROP SUCH A MOVE COULD EVEN COME AFTER A MERGER OF NORTHROP AND GRUMMAN IS COMPLETED SOME INDUSTRY WATCHERS SPECULATE UNDER FEDERAL GUIDELINES GRUMMAN MUST RESPOND TO NORTHROP'S OFFER BY TOMORROW A SPOKESMAN FOR MARTIN MARIETTA WOULDN'T ELABORATE ON THE LETTER A GRUMMAN SPOKESMAN COULDN'T BE REACHED A NORTHROP SPOKESMAN SAID MANAGERS THERE BELIEVE THE PRIOR STANDSTILL AGREEMENT BETWEEN NORTHROP AND GRUMMAN BECAME UNENFORCEABLE ONCE IT BECAME CLEAR THAT GRUMMAN WAS FOR SALE MEANWHILE MARTIN MARIETTA AN AEROSPACE AND DEFENSE COMPANY BASED IN BETHESDA MD SAID IT ANTICIPATED 450 MILLION IN SAVINGS DURING THE NEXT 10 YEARS ON TITAN IV HEAVYLAUNCH ROCKET COSTS AS A RESULT OF ITS PURCHASE OF GENERAL DYNAMICS' MEDIUMLIFT ATLASCENTAUR SYSTEM UNDER EXISTING TITAN CONTRACTS WITH THE MILITARY ALL THOSE SAVINGS WOULD HAVE ACCRUED TO THE GOVERNMENT BUT MARTIN MARIETTA'S CHAIRMAN NOTIFIED THE DEFENSE DEPARTMENT LATE LAST YEAR THAT THE COMPANY WOULD WALK AWAY FROM THE PROPOSED PURCHASE IF THE PENTAGON DECLINED TO SHARE THE RESULTING SAVINGS MARTIN MARIETTA HAD BEEN THE ONLY OBVIOUS CANDIDATE TO BUY THE ATLASCENTAUR UNIT UNDER A NEW AGREEMENT CONFIRMED BY THE DEFENSE DEPARTMENT THE SPACELAUNCH SAVINGS WILL BE SPLIT BETWEEN THE GOVERNMENT AND THE COMPANY IN A LETTER YESTERDAY TO MARTIN MARIETTA PRESIDENT THOMAS YOUNG A SENIOR ACQUISITION OFFICIAL AT THE PENTAGON R NOEL LONGUEMARE SAID THE GOVERNMENT DECISION WAS DESIGNED TO ASSURE THE ADEQUACY OF THE DEFENSE INDUSTRIAL BASE WHILE PROTECTING TAXPAYER INTERESTS IT MAKES SENSE SAID ANALYST PAUL NISBET OF JSA RESEARCH OF NEWPORT RI WHY SHOULD THE GOVERNMENT GET ALL THE BENEFITS OF A RISK DEAL THAT MARTIN MARIETTA ENTERS INTO WHILE SOME RIVAL DEFENSE CONTRACTORS HAVE PRIVATELY CRITICIZED THE PROSPECT OF GOVERNMENT CONCESSIONS MARTIN MARIETTA OFFICIALS HAVE SAID BUYING GENERAL DYNAMICS' SPACELAUNCH BUSINESS DOESN'T MAKE SENSE UNLESS THE GOVERNMENT SHARES THE SAVINGS THE COMPANIES AGREED TO THE SALE LATE LAST YEAR BUT A FORMAL SALE DOCUMENT WON'T BE SIGNED UNTIL APRIL 30 AT THE LATEST ANTITRUST REGULATORY CLEARANCES ARE EXPECTED SOON 9403240043 940324 BUSINESS BRIEF PEP BOYSMANNY MOE & JACK NET INCOME ROSE BY 26 IN FISCAL FOURTH QUARTER PEP BOYSMANNY MOE & JACK SAID NET INCOME FOR ITS FISCAL FOURTH QUARTER ROSE 26 SLIGHTLY BETTERING ANALYSTS' ESTIMATES FOR THE QUARTER ENDED JAN 29 NET ROSE TO 155 MILLION OR 25 CENTS A SHARE FROM 123 MILLION OR 20 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 2968 MILLION UP 9 FROM 272 MILLION THE PHILADELPHIABASED COMPANY SAID FISCAL 1994 IS OFF TO A SOLID START WITH COMPARABLESTORE SALES AND LABOR REVENUE RUNNING AHEAD OF PLAN IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY THE STOCK CLOSED AT 2825 UP 125 FOR THE YEAR THE AUTOPARTS RETAILER SAID EARNINGS CLIMBED TO 655 MILLION OR 106 A SHARE FROM 546 MILLION OR 90 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 7 TO 124 BILLION PEP BOYS WHICH OPERATES 386 STORES IN 28 STATES SAID IT EXPECTS TO OPEN AS MANY AS 50 SUPERCENTERS IN FISCAL 1994 9403240042 940324 INTERNATIONAL BRIEF CATHAY PACIFIC AIRWAYS CARRIER AGREES TO BUY STAKE OF 75 IN AIR HONG KONG CATHAY PACIFIC AIRWAYS HONG KONG AGREED IN PRINCIPLE TO BUY A 75 STAKE IN FREIGHT CARRIER AIR HONG KONG IN A DEAL THAT WOULD ALLOW CATHAY TO ABSORB A RIVAL AND STRENGTHEN ITS ALREADY DOMINANT POSITION IN THE LOCAL AVIATION MARKET THE PLANNED PURCHASE ALSO PREVENTS GUANGZHOUBASED CHINA SOUTHERN AIRLINES FROM BUYING INTO AIR HONG KONG THE PRICE WASN'T DISCLOSED BUT INDUSTRY EXECUTIVES ESTIMATED IT AT 20 MILLION CATHAY AGREED TO ACQUIRE THE STAKE FROM SHUN TAK HOLDINGS LTD CONTROLLED BY STANLEY HO WHICH CURRENTLY OWNS 80 OF THE CARRIER SHUN TAK AND MR HO BEST KNOWN FOR HIS CASINO INTERESTS IN MACAO WOULD RETAIN 25 OF THE CARRIER MR HO IS TO REMAIN CHAIRMAN OF AIR HONG KONG BUT MANAGEMENT CONTROL IS TO PASS TO CATHAY IN A STATEMENT CATHAY CHAIRMAN PETER SUTCH SAID AIR HONG KONG'S CARGO SERVICES TO EUROPE AND ASIA ARE LIKELY TO MERGE WITH THOSE OF CATHAY 9403240041 940324 UNOCAL CORP EXPECTS FIRSTQUARTER CHARGE TOTALING 25 MILLION LOS ANGELES UNOCAL CORP SAID IT WILL TAKE A 25 MILLION AFTERTAX CHARGE AGAINST FIRSTQUARTER EARNINGS RELATED TO MILLIONS OF GALLONS OF SPILLED PETROLEUM PRODUCT AT A CALIFORNIA OIL FIELD UNOCAL'S ANNOUNCEMENT LATE YESTERDAY CAME HOURS AFTER THE STATE OF CALIFORNIA SUED THE LOS ANGELESBASED OIL COMPANY IN STATE COURT FOR UNSPECIFIED DAMAGES IN A CIVIL CASE THAT GOVERNMENT OFFICIALS SAID THEY BELIEVED IS THE LARGEST TOXIC SPILL IN CALIFORNIA HISTORY ALLEGEDLY INVOLVING MORE THAN EIGHT MILLION GALLONS LEAKING FROM A PRODUCTIONENHANCEMENT SYSTEM BETWEEN 1954 AND 1990 UNOCAL SAID ITS PROSPECTIVE FIRSTQUARTER CHARGE REFLECTS THE EXPECTED COSTS OF WRITEDOWN OF FACILITIES IMMEDIATE REMEDIATION COSTS AND EXPENSES OF ABANDONMENT AT THE AFFECTED GUADELUPE OIL FIELD NEAR THE CENTRAL CALIFORNIA COAST TOWN OF SAN LUIS OBISPO THE COMPANY SAID RECENTLY IT HOPES TO CLOSE THE OIL FIELD BUT MAY NOT BE ABLE TO DO SO FOR SIX MONTHS OR MORE THE STATE'S CIVIL SUIT WAS EXPECTED AFTER UNOCAL AGREED A WEEK AGO TO PAY ABOUT 15 MILLION TO SETTLE CRIMINAL CHARGES RELATED TO THE SPILLS UNDER THE PLEA BARGAIN EARLIER THIS MONTH UNOCAL PLEADED GUILTY TO THREE CRIMINAL MISDEMEANOR CHARGES AND 33 OTHER MISDEMEANOR COUNTS WERE DROPPED UNDER CALIFORNIA LAW UNOCAL COULD BE PENALIZED UP TO 20 FOR EVERY GALLON SPILLED OR 250000 FOR EACH OF 23 ALLEGED VIOLATIONS INDICATING CIVIL PENALTIES BETWEEN 58 MILLION AND 160 MILLION UNOCAL SAID HOWEVER THAT IT BELIEVED ITS LIABILITY IF ANY TO BE FAR SMALLER AND NOT TO HAVE A MATERIAL AFFECT ON ITS FINANCIAL CONDITION AT SOME POINT WE EXPECT TO PAY CIVIL PENALITIES THAT WILL AMOUNT TO ONLY A SMALL FRACTION OF THE TOTAL PENALTIES SOUGHT BY THE STATE ATTORNEY GENERAL SAID JOHN F IMLE JR UNOCAL EXECUTIVE VICE PRESIDENT IN THE YEAREARLIER FIRST QUARTER UNOCAL HAD NET INCOME OF 11 MILLION OR ONE CENT A SHARE AFTER ONETIME GAINS OF 47 MILLION AND ONETIME ACCOUNTING ADJUSTMENTS TOTALING 130 MILLION REVENUE FOR THE PERIOD TOTALED 232 BILLION 9403240040 940324 LEISURE & ARTS BOOKSHELF A NEW SPIN ON DEMOCRACY BY ABIGAIL THERNSTROM IT USED TO BE THAT LANI GUINIER HAD TWO IMPORTANT THINGS GOING FOR HER A TASTE FOR INTELLECTUAL ADVENTURE NOT SO COMMON IN THE ACADEMY AND THE COURAGE OF HER CONVICTIONS SHE HAD INTERESTING OUTOFTHEMAINSTREAM ARGUABLY UNDEMOCRATIC IDEAS AND SHE SAID WHAT SHE THOUGHT BUT THE STRAIGHT TALK IS NOW FUDGE LIKE THE ADMINISTRATION SHE COULDN'T JOIN AS ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS SHE'S ALL INTO SPIN IDEAS THAT WERE ONCE PROVOCATIVE HAVE BEEN PRETTILY REPACKAGED AS ALLAMERICAN RUNOFTHEMILL DEMOCRATIC NOTIONS IT'S AN ODD PLAY FOR RESPECTABILITY FOR IF SHE HAS NOTHING DISTINCTIVE TO SAY THERE'S REALLY NO POINT IN READING HER WORK THUS IN THE TYRANNY OF THE MAJORITY MARTIN KESSLER BOOKS/FREE PRESS 324 PAGES 2495 THE NEW GUINIER TALKS OF SIMPLY WANTING MORE DEMOCRACY HER AIM SHE SAYS IS DEMOCRATIC FAIR PLAY THE RULES BY WHICH WE'RE GOVERNED SHOULD BOTH REWARD THOSE WHO WIN AND REMAIN ACCEPTABLE TO THOSE WHO LOSE WHAT'S SO SCARY ABOUT THAT MS GUINIER COMPLAINS THAT HER UNEXCEPTIONAL IDEAS HAVE BEEN HORRIBLY DISTORTED THE PRESS SHE CHARGES CONDUCTED AN HYSTERICAL ASSAULT THE PRESUMABLY GULLIBLE PRESIDENT WAS BAMBOOZLED HIS MIND POISONED BY ENEMIES ON THE RIGHT THOSE ENEMIES CONVINCED THE PRESIDENT TO GET PERSONAL CALLING HER IDEAS ANTIDEMOCRATIC AND DIFFICULT TO DEFEND HOW COULD THAT HAPPEN TO SOMEONE SO DEEPLY COMMITTED TO CONSENSUS IT IS A CONVENIENT BUT EXTREMELY FARFETCHED STORY THE HYSTERICAL PRESS INCLUDED THE EDITORS OF THE NEW YORK TIMES AND THE NEW REPUBLIC COLUMNIST DAVID BRODER AND LEGAL TIMES ANALYST STUART TAYLOR EVEN BEFORE HER NOMINATION WAS WITHDRAWN A NUMBER OF DEMOCRATS IN CONGRESS SENS JOSEPH BIDEN AND PATRICK LEAHY FOR INSTANCE HAD EXPRESSED MISGIVINGS ABOUT HER IDEAS WERE HER DETRACTORS UNFAIR READERS WITH THE PATIENCE TO WADE THROUGH HER MURKY PROSE CAN NOW PARTIALLY JUDGE THE CHARGE OF WILLFUL DISTORTION FOR THEMSELVES CHAPTERS ONE AND SEVEN THE INTRODUCTION AND EPILOGUE ARE THE FANCY NEW WRAPPING BUT THOSE IN BETWEEN CONVEY A SENSE OF THE OLD ALLEGEDLY ANTIDEMOCRATIC STUFF THEY ARE SUBSTANTIALLY EDITED AND THUS CLEANED UP VERSIONS OF THE LAWREVIEW ARTICLES THAT BOTH LIBERAL AND CONSERVATIVE CRITICS FOUND SO TROUBLING MS GUINIER'S MAIN POINT AS THE TITLE INDICATES IS THE TYRANNY OF THE AMERICAN MAJORITY BY WHICH SHE MEANS THE WHITE MAJORITY BLACKS IN HER VIEW ARE POLITICALLY POWERLESS THEY ARE A PARIAH GROUP SYSTEMATIC LOSERS IN THE POLITICAL MARKETPLACE HER SOLUTION DISCARD MAJORITY RULE WHAT SHE CALLS THE ILLEGITIMATE SYSTEM IN WHICH THOSE WHO ARE OUTVOTED DON'T COUNT SUBSTITUTE A VARIETY OF RULES THAT GIVE MINORITY VOTERS AND MINORITY LEGISLATORS PROPORTIONATE POWER IN THIS WAY SHE THINKS THE MAJORITY AND THE MINORITY WOULD BOTH PREVAIL WHY SHOULD SOME PEOPLE WIN AND OTHERS LOSE IN FACT WHY NOT ADOPT MS GUINIER ASKS A GROWNUP VERSION OF TAKING TURNS SHE DRAWS AN ANALOGY IF A GROUP OF CHILDREN CAN'T AGREE ON WHAT TO PLAY TAG OR HIDEANDSEEK THEY NEED NOT LET THE MAJORITY RULE THEY CAN DO BOTH IN TURN PUBLIC POLICY CAN WORK THE SAME WAY MS GUINIER SUGGESTS IT'S A LUDICROUS IDEA THAT SHE GOT FROM HER FOURYEAROLD SON CAN OPPOSING SIDES ON THE WELFARE QUESTION BOTH HAVE THEIR WAY DO THEY TAKE TURNS FIRST MORE BENEFITS AND THEN NONE AT ALL AND WHY ARE SUCH ARRANGEMENTS NECESSARY MS GUINIER DEPICTS A PERMANENTLY HOSTILE TYRANNICAL WHITE MAJORITY AND BLACKS WITH BARELY A FOOT IN THE POLITICAL DOOR AND NO MECHANISMS FOR HOLDING WHITES TO ACCOUNT IT'S HER MOST PERSISTENT POINT THEM AGAINST US WHITES VS BLACKS THUS BLACK OFFICEHOLDERS WHO DEPEND ON WHITE VOTES ARE INAUTHENTIC CONTAMINATED BY THEIR WHITE SUPPORT REAL BLACKS ARE POLITICALLY PSYCHOLOGICALLY AND CULTURALLY BLACK AS SHE SAYS IN A FOOTNOTE BLACKS ELECTED FOR INSTANCE FROM MAJORITYWHITE JURISDICTIONS TRIM THEIR SAILS THUS THEY ARE INAUTHENTICALLY MODERATE BLACK RADICALS COUNT AS BLACK BLACK CENTRISTS DON'T MS GUINIER'S PICTURE OF WHITES AS ALL ALIKE AND STILL IMPLACABLY HOSTILE TO BLACKS IS PURE FANTASY BUT THEN THERE IS MUCH THAT IS BIZARRE IN HER WORK FOR INSTANCE SHE ENLISTS THE WRITINGS OF JAMES MADISON AND OTHER FOUNDING MEMBERS OF OUR REPUBLIC IN SUPPORT OF HER VIEWS ON MAJORITYRULE BUT THE FEW QUOTATIONS THAT SHE PLUCKS FROM MADISON AND HAMILTON RUN COMPLETELY COUNTER TO THE CENTRAL THRUST OF THEIR WORK THE FEDERALIST PAPERS WERE A BRIEF FOR A STRONG AND ENERGETIC CENTRAL GOVERNMENT NOT FOR TAKING TURNS MS GUINIER'S VIEWS ARE CLOSER TO THAT OF THE SLAVEOWNERS' ADVOCATE JOHN C CALHOUN WHO PROPOSED GIVING THE SLAVEHOLDING STATES AN EMBATTLED MINORITY THE POWER TO VETO FEDERAL LEGISLATION TO WHICH THEY OBJECTED BOTH MS GUINIER AND HER SUPPORTERS BELIEVE SHE WAS OWED AT LEAST A CONGRESSIONAL HEARING IN WHICH TO AIR HER VIEWS BUT SUCH HEARINGS WERE NEVER AN ENTITLEMENT AND IF SHE WAS SILENCED THEN SHE HAS HAD PLENTY OF SUBSEQUENT OPPORTUNITY TO EXPLAIN HERSELF IN FACT HER PROBLEM IS NOT CENSORSHIP HER WORD BUT SELFCENSORSHIP SHE PRIDES HERSELF SHE SAYS ON HER UNFLINCHING CANDOR BUT SHE HAS CHOSEN TO SANITIZE HER OWN WORK TO WHAT END CERTAINLY NOT TO FURTHER THE FORTHRIGHT DEBATE SHE CLAIMS SHE DESPERATELY WANTS MS THERNSTROM IS THE AUTHOR OF WHOSE VOTES COUNT AFFIRMATIVE ACTION AND MINORITY VOTING RIGHTS HARVARD UNIVERSITY PRESS 9403240039 940324 TECHNOLOGY BRIEF MICROSOFT CORP MULTIMEDIA PROJECTS SET WITH NIPPON TELEGRAPH MICROSOFT CORP ANNOUNCED TWO MULTIMEDIA PROJECTS WITH JAPANESE GIANT NIPPON TELEGRAPH & TELEPHONE CORP WE'RE TRYING TO FORM THE INFRASTRUCTURE FOR MULTIMEDIA AND IN ORDER TO DO THAT WE NEED TO WORK TOGETHER SAID A MICROSOFT SPOKESWOMAN IN TOKYO INITIALLY MICROSOFT AND NTT PLAN TO DEVELOP A SYSTEM FOR DISTRIBUTING SOFTWARE AND OTHER MULTIMEDIA INFORMATION VIA COMPACT DISKS KNOWN AS CDROMS WHICH CAN STORE A HUGE QUANTITY OF SOFTWARE GRAPHICS AND VIDEO DATA UNDER THE PROPOSED SYSTEM PEOPLE COULD BUY CHEAP CDROM DISKS CONTAINING A VARIETY OF PROGRAMS AND OTHER DATA THAT WOULD BE LOCKED WITH SPECIAL COMPUTERIZED CODE KEYS AFTER VIEWING PREVIEWS FROM THE DISK INTERESTED USERS COULD THEN DOWNLOAD THE APPROPRIATE KEY FOR THE SOFTWARE THEY WANT OVER THE NTT NETWORK THE TWO COMPANIES ALSO ARE WORKING ON A WAY TO MAKE MICROSOFT SOFTWARE COMPATIBLE WITH AN NTT NETWORK SERVICE THAT PROVIDES ENHANCED FAXING SERVICES SUCH AS DELIVERING THE SAME DOCUMENT TO MULTIPLE DESTINATIONS 9403240038 940324 SMOKED OUT TOBACCO LOBBY FINDS ITS INFLUENCE WANING AS HEALTH ISSUE GROWS FEDERAL TAX INCREASE LOOMS AND BANS HIGHER LEVIES SPREAD AT LOCAL LEVELS SOME OLD ALLIES FADE AWAY BY EBEN SHAPIRO AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON FOR YEARS REP CHARLES RANGEL FOUGHT AGAINST HIGHER CIGARETTE TAXES NOW HE HAS PLEDGED TO KICK THE HABIT I NEVER HAD A CONTRACT WITH CIGARETTE MAKERS NOTES MR RANGEL A PROMINENT MEMBER OF THE HOUSE WAYS AND MEANS COMMITTEE WHO HAS RECEIVED MORE THAN 34000 IN CAMPAIGN CONTRIBUTIONS FROM THE INDUSTRY OVER THE PAST DECADE THE NEW YORK DEMOCRAT WHO RECALLS GETTING CARTONS OF SMOKES AS GIFTS FROM TOBACCO COMPANIES WHEN HE WAS FIRST ELECTED 24 YEARS AGO USED TO ARGUE THAT CIGARETTETAX INCREASES WOULD HIT HIS POOR HARLEM CONSTITUENTS DISPROPORTIONATELY HARD BUT HE SAYS THAT THIS YEAR HE WILL SUPPORT A SUBSTANTIAL INCREASE IN THE LEVY PROBABLY ALONG THE LINES OF THE 75 CENTS A PACK THAT PRESIDENT CLINTON HAS PROPOSED TO PAY FOR HEALTHCARE REFORM FACING THE MOST BRUISING LEGISLATIVE SESSION IN ITS HISTORY THE ONCEINVINCIBLE TOBACCO LOBBY IS SHOWING SIGNS OF STRAIN IN ADDITION TO THE TAX A SLEW OF OTHER ANTISMOKING MEASURES ARE GAINING MOMENTUM INCLUDING A PROPOSED NATIONAL BAN ON SMOKING IN MOST PUBLIC BUILDINGS AND ADVERTISING RESTRICTIONS IN SOME CITIES THE LATEST EVIDENCE OF THE TOBACCO LOBBY'S WANING INFLUENCE CAME THIS WEEK WHEN A HOUSE SUBCOMMITTEE VOTED TO FINANCE THE PROPOSED HEALTHCARE OVERHAUL BY RAISING THE CURRENT 24CENTAPACK FEDERAL TAX ON CIGARETTES EVEN MORE THAN THE PRESIDENT REQUESTED THE PANEL VOTED FOR A 125 INCREASE LESS THAN THE 2 URGED BY ANTISMOKING GROUPS BUT STILL A HUGE JUMP FOR DECADES CIGARETTE MAKERS SPENT MILLIONS OF DOLLARS BUYING INFLUENCE IN CONGRESS AND THEY LARGELY ESCAPED TOUGH REGULATION IN ADDITION CIGARETTE TAXES REMAIN FAR LOWER IN THE US THAN IN MOST INDUSTRIALIZED NATIONS BUT SOME OF THE INDUSTRY'S LONGTIME FRIENDS ON CAPITOL HILL HAVE FALLEN SILENT OR EVEN MORE REMARKABLE ARE REVERSING THEIR POSITIONS ON KEY ISSUES THE COALITION HAS FALLEN APART FRETS DEMOCRAT H MARTIN LANCASTER OF NORTH CAROLINA AN INDUSTRY CHAMPION LIKE THE NATIONAL RIFLE ASSOCIATION WHICH HAS BEEN HURT BY THE OUTCRY OVER GUNRELATED VIOLENCE THE TOBACCO INDUSTRY FACES A CRESCENDO OF CONCERN ABOUT THE HEALTH DAMAGE CAUSED BY CIGARETTES WHEN THE DEBATE IS DRIVEN BY EMOTION IT BECOMES ALMOST IMPOSSIBLE FOR US TO CONTROL SAYS THE TOBACCO INSTITUTE'S WALKER MERRYMAN PUFFING AWAY ON A BENSON & HEDGES HIS OFFICE IS A SHRINE TO POLITICAL INCORRECTNESS A PLACARD SAYS THANK YOU FOR NOT ASKING ME NOT TO SMOKE AND A BULLETIN BOARD FEATURES A SIGN PROMOTING THE RIGHTS OF HANDGUN OWNERS AND ANOTHER THAT DECLARES I LOVE ANIMALS THEY'RE DELICIOUS WHILE THE FEDERAL GOVERNMENT ESTIMATES THAT CIGARETTES KILL MORE THAN 400000 AMERICANS A YEAR LEGISLATORS SAY THE TOBACCO INDUSTRY HAS UNDERMINED ITS OWN CREDIBILITY BY BEING SO UNYIELDING IN ITS DENIAL THAT CIGARETTES ARE HARMFUL OR ADDICTIVE AT THE SAME TIME CRITICS HAVE SUCCESSFULLY PORTRAYED CIGARETTE MAKERS AS INTENT ON HOOKING MINORITIES WOMEN AND YOUNG PEOPLE ON THEIR PRODUCT IT IS GETTING POLITICALLY UNACCEPTABLE TO BE SEEN AS AN ADVOCATE FOR TOBACCO REP BILL RICHARDSON SAYS THE NEW MEXICO DEMOCRAT ADMITS TO HAVING BEEN A HIGHPROFILE DEFENDER OF THE INDUSTRY IN THE PAST ONCE TAKING THE LEAD IN DERAILING A PROPOSAL TO RESTRICT ITS ADVERTISING BUT AFTER A VISIT BY A GROUP OF ANGRY VOTERS HE SAYS HE DECIDED HE WOULDN'T TAKE SUCH A POSITION TODAY IF WE ARE GOING TO DEAL EFFECTIVELY WITH HEALTH CARE WE HAVE TO REDUCE THE INFLUENCE OF TOBACCO HE SAYS FACING MORE AND MORE ISOLATION ON CAPITOL HILL THE INDUSTRY IS INCREASINGLY RESORTING TO NEW HARDBALL TACTICS PHILIP MORRIS COS THE NATION'S LARGEST TOBACCO COMPANY NOW IS FREQUENTLY GOING TO COURT TO SEEK REDRESS SINCE LAST YEAR IT HAS SUED THE ENVIRONMENTAL PROTECTION AGENCY CHALLENGING THE AGENCY'S REPORT ON SECONDHAND SMOKE AND THE CITY OF SAN FRANCISCO SEEKING TO OVERTURN A STRICT SMOKING BAN THE SUITS ARE STILL PENDING THE COMPANY IS EXPECTED TO ANNOUNCE A NEW LAWSUIT TODAY CHALLENGING AN ABC NEWS REPORT THAT SUGGESTED THE INDUSTRY WAS ADDING NICOTINE TO CIGARETTES TO HOOK SMOKERS YET DESPITE SETBACKS THE INDUSTRY REMAINS ONE OF THE MOST POTENT PLAYERS IN TOWN IT SHOWERED LAWMAKERS WITH 23 MILLION IN CAMPAIGN CONTRIBUTIONS DURING THE 199192 ELECTION CYCLE INCLUDING 55998 TO SEN WENDELL FORD OF KENTUCKY A STAUNCH INDUSTRY DEFENDER WHO MAY RUN FOR SENATE MAJORITY LEADER PHILIP MORRIS CONTINUES TO UNDERWRITE GENEROUSLY CIVIC EVENTS ALL OVER WASHINGTON AND THE INDUSTRY HAS HIRED TOPFLIGHT LOBBYISTS INCLUDING CHARLES BLACK A TOP CAMPAIGN ADVISER FOR PRESIDENT BUSH HOWARD LIEBENGOOD FORMER SERGEANTATARMS OF THE SENATE FRANK DONATELLI FORMER WHITE HOUSE POLITICAL DIRECTOR UNDER PRESIDENT REAGAN AND ROB LEONARD FORMERLY THE TOP STAFFER AT THE WAYS AND MEANS COMMITTEE DESPITE THE MOUNTING PRESSURE SOME TOBACCOSTATE LAWMAKERS REMAIN CONFIDENT THAT THEIR RANKS WILL HOLD AND THAT THEY CAN BEAT BACK ANY PROPOSAL THAT WOULD TRULY CRIPPLE THE INDUSTRY THE TOBACCO LOBBY'S MUSCLE IS SET TO BE TESTED AGAIN SOON BY A HOUSE SUBCOMMITTEE VOTE ON THE BILL THAT WOULD SERIOUSLY RESTRICT SMOKING IN MOST PUBLIC BUILDINGS THE OUTCOME IS TOO CLOSE TO CALL A BIG QUESTION MARK IS NEW YORK DEMOCRATIC REP EDOLPHUS TOWNS WHO FIRST SUGGESTED TO COLLEAGUES THAT HE WOULD FAVOR THE BILL BUT NOW APPEARS TO BE LEANING AGAINST IT SOMETIMES KNOWN AS THE MARLBORO MAN OF BROOKLYN REP TOWNS HAS TAKEN HONORARIA FROM PHILIP MORRIS RJR NABISCO HOLDINGS CORP AND OTHER TOBACCO INTERESTS DURING THE LAST ELECTION CYCLE THE TOBACCO INDUSTRY GAVE THE NORTH CAROLINA NATIVE 21245 MORE THAN WHAT IT DONATED TO ALL BUT FOUR OTHER CONGRESSMEN MR TOWNS DIDN'T RETURN PHONE CALLS SEEKING COMMENT BUT INCREASINGLY THOSE ON CAPITOL HILL SEEM INTERESTED IN LASHING OUT AT THE TOBACCO INDUSTRY NOT JUST ENJOYING ITS LARGESS A RECORD 58 LAWMAKERS NOW BELONG TO THE TASK FORCE ON TOBACCO AND HEALTH A CONGRESSIONAL ANTISMOKING GROUP FORMED IN 1989 FOR THE FIRST TIME TASKFORCE MEMBERS SAY THEY OUTNUMBER THE 40 TO 50 CORE TOBACCO SUPPORTERS IN CONGRESS WE'RE DOUBLING OUR EFFORTS SAYS DEMOCRATIC REP RICHARD DURBIN OF ILLINOIS AN ARDENT FOE OF THE CIGARETTE MAKERS WE FEEL THIS IS EXACTLY THE RIGHT ENVIRONMENT TO MAKE SOME REAL PROGRESS THE TOBACCO LOBBY IS ALSO GETTING NO SYMPATHY FROM A VEHEMENTLY ANTISMOKING WHITE HOUSE WHEN HILLARY RODHAM CLINTON BANNED SMOKING IN THE EXECUTIVE MANSION EVEN BEFORE THE FIRST FAMILY HAD UNPACKED ITS BAGS EVERYONE GOT THE MESSAGE THAT THEY SHOULD LOOK AT THEIR AGENCY AND SEE WHAT THEY COULD DO TO FURTHER THE OBJECTIVE SAYS CRAIG FULLER PHILIP MORRIS'S TOP INHOUSE LOBBYIST AND A FORMER CHIEF OF STAFF TO GEORGE BUSH SO THE FOOD AND DRUG ADMINISTRATION IS CONSIDERING REGULATING CIGARETTES AS A DRUG FOLLOWING THE UPROAR OVER THE CHARGES ABOUT MANIPULATION OF NICOTINE LEVELS THE JUSTICE DEPARTMENT HAS TAKEN UP AN UNUSUAL ANTITRUST CASE AGAINST THE INDUSTRY THE PENTAGON RECENTLY BANNED SMOKING IN MILITARY WORKPLACES AND DESPITE A FULLBORE LOBBYING EFFORT THE INDUSTRY FAILED LAST YEAR TO BLOCK RELEASE OF A DAMAGING EPA REPORT ASSERTING THAT SECONDHAND SMOKE CAUSES CANCER NOT ONLY HAS THE TOBACCO LOBBY LOST INFLUENCE ITS FOES HAVE BECOME INCREASINGLY SOPHISTICATED AND WELLORGANIZED IN THEIR OWN LOBBYING AND PUBLICITY CAMPAIGNS LOGGING ON A COMPUTER NETWORK THEY COMMUNICATE DAILY ON STRATEGY FOR SPINNING THE LATEST TOBACCO NEWS COMPLETE WITH SUGGESTED MEDIA BITES ONE ATTACK ON JOE CAMEL OF COURSE CARTOONS ARE DESIGNED TO APPEAL TO ADULTS ONLY AND TEETHING RINGS ARE DESIGNED EXCLUSIVELY FOR FRETFUL ADULTS MOREOVER THE TOBACCO INDUSTRY'S DEFEATS HAVE BEEN PILING UP EVEN FASTER AT THE STATE AND LOCAL LEVELS EARLIER THIS MONTH THE BALTIMORE CITY COUNCIL PASSED AN ORDINANCE PROHIBITING CIGARETTE ADVERTISING ON BILLBOARDS ON THE SIDES OF BUILDINGS AND ON FREESTANDING SIGNBOARDS WE FOUGHT RATHER HARD ON IT SAYS DENNIS MCCOY A LOBBYIST IN MARYLAND FOR PHILIP MORRIS AN EVEN BIGGER LOSS TOOK PLACE THIS MONTH IN MICHIGAN WHERE THE INDUSTRY POURED 33 MILLION INTO AN ILLFATED CAMPAIGN AGAINST THE TRIPLING OF THE STATE'S CIGARETTE TAX AS PART OF A BROAD PACKAGE TO FINANCE PUBLIC EDUCATION TOBACCO MONEY BOUGHT GLITZY TELEVISION ADS COLOR BROCHURES AND AN EXPENSIVE DIRECTMAIL CAMPAIGN BUT THE PLAN BACKFIRED WHEN SUPPORTERS PUT A SPOTLIGHT ON THE INDUSTRY'S LOBBYING A CARTOON IN THE DETROIT FREE PRESS PICTURED THE TOBACCO LOBBY REPRESENTED BY JOE CAMEL LYING IN BED WITH A WOMAN WHO REPRESENTED OTHER MICHIGAN POLITICAL INTERESTS OPPOSING THE TAX MANY OF THE INDUSTRY'S ALLIES NOW REGRET EVER TAKING TOBACCO DOLLARS IT WAS A LIABILITY SAYS PATRICE ELMS THE CHAIRWOMAN OF MICHIGAN CITIZENS FOR FAIR TAXES THE TOBACCOINDUSTRYSPONSORED GROUP THAT FOUGHT THE TAX PACKAGE THE TOBACCO LOBBY IS NOT NEARLY AS STRONG AS I THOUGHT IT WAS SHE ADDS THEIR DAYS FOR BEING STRONG AT LEAST ON THE STATE LEVEL ARE PRETTY MUCH OVER IN 1993 CIGARETTETAX INCREASES WERE APPROVED IN 15 STATES AFTER SIX THE YEAR BEFORE ACCORDING TO THE NATIONAL CONFERENCE OF STATE LEGISLATURES THE NATIONAL CONCERN ABOUT THE HEALTH EFFECTS OF USING CIGARETTES HAS ROLLED OVER THE TOBACCO LOBBY SAYS RON SNELL THE GROUP'S FISCAL PROGRAM DIRECTOR WITH ITS CLOUT SLIDING THE INDUSTRY IS INCREASING ITS SPENDING ON LOBBYING IN KEY STATES IN ITS UNSUCCESSFUL BATTLE AGAINST A SHARP INCREASE IN CIGARETTE TAXES IN NEW YORK STATE LAST YEAR PHILIP MORRIS TRIPLED ITS SPENDING TO MORE THAN 600000 BECOMING THE HIGHESTFINANCED LOBBY THERE ANOTHER BLOW TO THE INDUSTRY STEMS FROM ITS INCREASING ISOLATION WITH THE CLINTON ADMINISTRATION SINGLING OUT TOBACCO PRODUCTS FOR HIGHER FEDERAL TAXES AND LINKING THEM SPECIFICALLY TO HEALTH CARE TOBACCO COMPANIES CAN'T FIND MANY ALLIES IN WASHINGTON THE COALITION AGAINST REGRESSIVE TAXATION A BROADBASED GROUP THAT INCLUDES TRUCKERS AND WHISKEY PRODUCERS HAS IN THE PAST VIGOROUSLY FOUGHT EXCISETAX INCREASES BUT THIS YEAR IT IS VIRTUALLY SILENT THE WHITE HOUSE CONSIDERED RAISING TAXES ON LIQUOR AS WELL AS TOBACCO BUT WORRIED THAT LIQUOR HAD ALREADY BEEN HIT HARD IN THE 1990 BUDGET DEAL ALTHOUGH LIQUOR COMPANIES HAVE ESCAPED FOR NOW THEY ARE CONCERNED ABOUT LAWMAKERS WHO ARGUE THAT IT ISN'T FAIR TO RAISE TAXES ON TOBACCO ALONE WE DON'T LOOK KINDLY AT ONE SIDE TRYING TO DRAG US INTO THE TAX PACKAGE SAYS FRED MEISTER PRESIDENT OF THE DISTILLED SPIRITS COUNCIL OF THE US THE SUPPORT OF OTHER TRADITIONAL TOBACCO ALLIES IS ALSO MUTED WILLIAM APFELBAUM WHO HEADS TRANSPORTATION DISPLAYS INC WHICH SELLS ADVERTISING SPACE ON BUS KIOSKS AND BUSES USED TO BE AN OUTSPOKEN CRITIC OF CIGARETTE AD BANS IN THE 1980S HE ATTACKED BOSTON POLITICIANS FOR RESTRICTING TOBACCO ADS ON CITY BUSES IT COST US THE CONTRACT HE COMPLAINS AND HE HAS GIVEN UP THE FIGHT I LEARNED MY LESSON EVEN REMAINING ALLIES AVOID GETTING TOO COZY CONVENIENCESTORE CLERKS ARE FAST REPLACING THE TOBACCO FARMER AS THE INDUSTRY'S FAVORITE POSTER CHILD AN INCREASE IN TOBACCO TAXES WOULD HURT CONVENIENCE STORES WHICH ACCOUNT FOR ABOUT ONETHIRD OR 10 BILLION OF US CIGARETTE SALES NEVERTHELESS TOBACCO LOBBYISTS FAILED TO PERSUADE CONVENIENCESTORE CLERKS TO HAND OUT FLIERS OPPOSING HIGHER TAXES A SPOKESWOMAN FOR THE RETAILERS SAYS THEY DIDN'T WANT TO BOTHER CUSTOMERS MEANWHILE THE WASHINGTONBASED TOBACCO INSTITUTE SAW ITS BUDGET SLASHED LAST FALL BY THE CIGARETTE COMPANIES IN THE WAKE OF SEVERE PRICE CUTS ITS STAFF HAS DWINDLED 40 TO 40 EMPLOYEES AND THIS YEAR IT CANCELED ITS ANNUAL WINTER CONFERENCE FOR LAWMAKERS NEAR PALM SPRINGS CALIF IN AN EFFORT TO BATTLE BACK THE COMPANIES ARE STEPPING UP THEIR GRASSROOTS LOBBYING SOME 16000 OF THEIR EMPLOYEES RECENTLY MARCHED ON THE CAPITOL THE COMPANIES GAVE THEIR FACTORY WORKERS THE DAY OFF IN ADDITION PHILIP MORRIS HELPED CREATE THE RECENTLY FORMED NATIONAL SMOKERS ALLIANCE WHICH IS SIGNING UP MEMBERS NATIONWIDE AT 5 A HEAD THE GROUP HAS 60000 MEMBERS SO FAR AND IS SENDING A MAILING TO HUNDREDS OF THOUSANDS OF OTHERS TO JOIN THE FIGHT FOR SMOKERS' RIGHTS ALTHOUGH THE ALLIANCE STRESSES THAT IT REPRESENTS INDIVIDUALS WILLIAM ALTHAUS ITS CHAIRMAN ADMITS THAT THE ORGANIZATION WAS THE BRAINCHILD OF PHILIP MORRIS AND BURSONMARSTELLER THE COMPANY'S PUBLICRELATIONS FIRM MR ALTHAUS A FORMER MAYOR OF YORK PA SAYS MOST OF THE STARTUP MONEY CAME FROM PHILIP MORRIS WHICH SAW AN INDUSTRY NEED TO REEVALUATE ITS LOBBYING TACTICS NAME A SIGNIFICANT BATTLE THEY HAVE WON RECENTLY HE ASKS HE NOTES THAT PHILIP MORRIS ALSO PROVIDED THE NAMES OF SMOKERS TO CONTACT THE ALLIANCE WHICH IS ALSO BEING ADVISED BY FORMER REPUBLICAN REP GUY VANDER JAGT FORMER REAGAN AIDE LYN NOFZIGER AND REPUBLICAN NATIONAL COMMITTEE COCHAIR JEANIE AUSTIN IS ABOVE ALL CAMPAIGNING AGAINST THE PROPOSED EXCISETAX INCREASE BUT FOR INDUSTRY BACKERS ON CAPITOL HILL A SENSE OF RESIGNATION HAS SET IN THAT A TAX INCREASE AND PROBABLY A HEFTY ONE IS ALMOST SURE TO PASS THIS YEAR REP CHARLIE ROSE OF NORTH CAROLINA LONG THE HOUSE'S PREEMINENT DEFENDER OF TOBACCO GROWERS NOW FINDS HIMSELF CALLING A DOUBLING OF THE CIGARETTE TAX REASONABLE TERMS THAT WOULD HAVE BEEN UNIMAGINABLE JUST A YEAR AGO CROWDING INTO AN ELEVATOR THIS WEEK ON THE WAY TO A VOTE MR ROSE PLAYFULLY DUG HIS FINGER INTO REP PETE STARK THE CHAIRMAN OF THE SUBCOMMITTEE THAT PASSED THE 125APACK INCREASE SO WHAT DID YOU DO TODAY MR ROSE ASKED ONLY HALFJOKINGLY 2 OR 3 A PACK 9403240037 940324 LEISURE & ARTS AN ANSWER TO THE AGEOLD CRY WHERE ON EARTH AM I BY MICHAEL PEARCE I'LL ADMIT IT I'VE BEEN LOST IN FACT I'VE BEEN LOST SEVERAL TIMES THOUGH MOST OF THOSE TIMES I WAS WHAT THE MACHO CALL JUST A LITTLE TURNED AROUND GETTING FOUND JUST MEANT A LONGER WALK THAN I'D EXPECTED BUT THEN THERE WAS THE TIME I GOT REALLY LOST DEEP IN THE WILDERNESS OF SOUTH DAKOTA'S BLACK HILLS IT WAS SUPPOSED TO BE A SIMPLE HIKE ABOVE CAMP BUT I TOOK A TURN DOWN THE SPINE OF THE WRONG RIDGE THEN A TUMBLE SENT MY COMPASS FLYING INTO THE INCREASING DARKNESS BUT I WASN'T WORRIED BELIEVING THAT CAMP WAS JUST BELOW THE NEXT POINT I WALKED ON BUT RATHER THAN THE WARM GLOW OF THE LANTERNLIT TENTS I SAW NOTHING BUT AN ENDLESS PROCESSION OF STEEP TIMBERED HILLSIDES FOR AS FAR AS MY SQUINTING EYES COULD SEE I SAT IN THAT ONE SPOT FOR TWO HOURS SHIVERING AND CURSING MYSELF FOR NOT COMING BETTER PREPARED FINALLY A SHOUT AND THE BEAM OF A FLASHLIGHT ON AN ADJOINING RIDGE LED ME TO A FRIEND WHO'D DIAGNOSED MY PREDICAMENT THE MEMORIES AND FEARS OF BEING MIGHT AS WELL SIT DOWN 'TIL SOMEBODY FINDS ME KIND OF LOST WILL NEVER BE FORGOTTEN THANKFULLY THEY ALSO NEED NEVER AGAIN BE REPEATED NO I HAVEN'T HIRED A FULLTIME GUIDE CONFINED ALL OF MY TRIPS TO MY BACKYARD OR TAKEN LESSONS FROM SOME WILDERNESS TRIBESMAN STILL IN TOUCH WITH THE LAND INSTEAD I'M STAYING FOUND BY SIMPLY CONSULTING AN INSTRUMENT THAT'S NO LARGER THAN A DOLLAR CANDY BAR THOUGH THE PACKAGE MAY APPEAR SMALL AND SIMPLE THE TECHNOLOGY THAT'S WITHIN A GLOBAL POSITIONING SYSTEM IS HUGE AND LITERALLY OUT OF THIS WORLD IT ALL BEGAN AS A DEFENSE DEPARTMENT IDEA CONCEIVED IN THE '70S SAID RICK SILL VICE PRESIDENT OF SALES MAGELLAN SYSTEMS CORP SAN DIMAS CALIF THEY WERE LOOKING FOR A WORLDWIDE NAVIGATIONAL SYSTEM THAT COULD TELL OUR ARMED FORCES WHERE THEY WERE OR GET THEM WHERE THEY WANTED TO GO 24 HOURS A DAY ACCORDING TO MR SILL WHOSE COMPANY IS A PIONEER IN THE NEW TECHNOLOGY CONGRESS AGREED TO THE HIGHDOLLAR FUNDING IF THE PRIVATE SECTOR AS WELL AS THE MILITARY COULD ALSO BENEFIT FROM THE MONUMENTAL INVESTMENT TWO DOZEN SATELLITES WERE EVENTUALLY LAUNCHED TO CIRCLE THE GLOBE IN CRISSCROSSING PATTERNS THAT LEAVE ALL PORTIONS OF THE PLANET COVERED AT ALL TIMES IT'S FROM THESE THAT ALL GPS UNITS EARN THEIR KEEP BASICALLY ALL OF THE SATELLITES ARE TRANSMITTING SIGNALS SAID MR SILL WHENEVER YOU TURN ON A GPS UNIT IT TAKES AT LEAST THREE SETS OF READINGS TRIANGULATES THEM AND FIGURES OUT YOUR EXACT LOCATION ON THE PLANET THESE UNITS WHICH WERE A GODSEND IN THE FLAT BROWN SAND MONOTONY OF DESERT STORM CAN BE SURPRISINGLY EXACT THERE ARE SOME UNITS THAT CAN GET YOU TO WITHIN LESS THAN 10 METERS 33 FEET ANYWHERE IN THE WORLD SAID MR SILL IN SOME EXTREME CASES WE'RE TALKING ACCURACY WITHIN THE MILLIMETER RANGE BUT IN TERMS OF GENERAL CONSUMER USE YOU'RE LOOKING AT WITHIN 100 METERS THAT'S PRETTY DARN CLOSE PEOPLE SHOULD BE ABLE TO FIND WHATEVER THEY'VE BEEN LOOKING FOR WITHIN THAT SMALL OF AN AREA AND COST HAS COME DOWN SIGNIFICANTLY IN THE PAST FEW YEARS MAKING THE UNITS MORE AFFORDABLE TO CONSUMERS ONCE PRICED BETWEEN 3000 AND 4000 A GOOD HANDHELD UNIT NOW COSTS ABOUT 500 IN ADDITION TO MAGELLAN PANASONIC CO AND TRIMBLE NAVIGATION MAKE CONSUMER UNITS MOST ARE AVAILABLE FROM OUTDOOR CATALOGS SUCH AS CABELA'S 18002374444 OR GANDER MOUNTAIN 18005589410 HAD I SUCH AN INSTRUMENT ON THAT WRETCHED DAKOTA EVE GETTING BACK TO CAMP WOULD HAVE BEEN THE EASIEST OF TASKS FOR A GPS ALL YOU WOULD DO IS TAKE A READING AT CAMP AND THE UNIT WOULD HAVE TOLD YOU YOUR EXACT LONGITUDE AND LATITUDE SORT OF A GLOBAL SECOND AND MAIN SAID MR SILL HIMSELF AN AVID GPS USER THEN YOU COULD HAVE LABELED IT COMMITTED IT TO THE UNIT'S MEMORY IT CAN HOLD 100 SUCH LOCATIONS AND THEN RECALLED IT WHEN IT WAS TIME TO HEAD BACK THE WONDROUS LITTLE SCREEN ON THE UNIT WOULD HAVE DISPLAYED A SMALL ARROW TO POINT ME IN THE RIGHT DIRECTION IN ADDITION IT ALSO DISPLAYS ELEVATION TRAVELING SPEED AND APPROXIMATE DISTANCE FROM CAMP HAD I DESIRED TO MAKE RETURNING REALLY EASY I COULD HAVE SET THE UNIT TO TAKE AUTOMATIC READINGS EVERY 10 MINUTES WHEN I HAD REACHED THE FARTHEST POINT OF MY TREK I COULD HAVE PUNCHED A FEW KEYS AND THE UNIT WOULD HAVE TRACED THE READINGS BACK TO CAMP AS IF IT WERE FOLLOWING ELECTRONIC BREADCRUMBS SUCH GET YOU BACK TO WHERE YOU CAME FROM SERVICE CAN BE INVALUABLE WHEN CONDITIONS ARE POOR WE'VE HEARD FROM SOME VERY SERIOUS OUTDOORSMEN PEOPLE WHO KNEW THE AREA LIKE THE BACK OF THEIR HAND RAVE ABOUT THE UNITS SAID MR SILL THEY'VE BEEN UP ON A MOUNTAIN AND HAD A DENSE FOG OR BLINDING SNOW COME IN ALL OF A SUDDEN AND THEY COULDN'T SEE ALL THEY HAD TO DO WAS FOLLOW THE GPS AND THEY GOT BACK FINE WITHOUT IT THEY'D HAVE SPENT THE NIGHT UP ON THE MOUNTAIN GPS IS ALSO A GREAT COMPANION ON DAYS WHEN EVERYTHING IS GOING WELL IT REMEMBERS WHERE YOU'VE BEEN ON EVERY HIKE YOU LEAVE IN ITS MEMORY SO YEARS LATER IT LETS YOU RETRACE YOUR EXACT STEPS TO THAT PRISTINE MEADOW OR BREATHTAKING MOUNTAINTOP HUNTERS WILL ALSO QUICKLY BE ABLE TO LOCATE STANDS OR PRIME AMBUSH SIGHTS IN THE PREDAWN DARKNESS NO MATTER WHAT THEIR FIELD OF INTEREST OUTDOORSMEN WILL EVEN BE ABLE TO FIND PLACES THEY'VE NEVER SEEN A GOOD TOPOGRAPHICAL MAP PLUS A LITTLE FIGURING WITH A GPS COULD QUICKLY LEAD SOMEONE TO THE CREST OF A DISTANT RIDGE A BEAVER POND OR LAKE INFORMATION CAN ALSO BE SHARED MUCH MORE EASILY THAN EVER BEFORE IF YOU'RE IN A WILDERNESS AREA LIKE SOMEPLACE IN YOSEMITE AND COME ACROSS SOMETHING REALLY SPECIAL THAT YOU'D LIKE FRIENDS TO SEE YOU CAN NOW TELL THEM HOW TO FIND IT SAID MR SILL RATHER THAN TAKE THEM THERE YOURSELF ALL YOU HAVE TO DO IS CALL THEM GIVE THEM THE COORDINATES AND THEY'LL FIND IT YOU COULD EVEN ARRANGE TO MEET THEM THERE COMING IN FROM TWO DIFFERENT DIRECTIONS A LOT OF PEOPLE ARE HAVING FUN JUST TREKKING ABOUT WITH THE UNITS GPS UNITS HAVE ALSO FOUND THEIR WAY INTO THE HANDS OF WATER ADVENTURERS IN INLAND ROWBOATS AND ROVING OPENWATER CRUISERS WHO HAVE FOUND USES FOR THE TECHNOLOGY THAT GO BEYOND JUST RETURNING TO PORT I THINK YOU'RE GOING TO SEE A DRAMATIC INCREASE IN FISHING SUCCESS FOR THE AVERAGE FISHERMAN BECAUSE OF GPS SAID MIKE HAYDEN PRESIDENT AND CHIEF EXECUTIVE OF THE AMERICAN SPORT FISHING ASSOCIATION I WAS JUST DOWN IN FLORIDA AND WE WERE ABLE TO LOCATE A STRUCTURE A KNOWN UNDERWATER HABITAT 20 MILES OFFSHORE THE GPS GOT US WITHIN JUST 600 FEET WE LOCATED THAT PARTICULAR STRUCTURE FISHED IT AND CAUGHT FISH ACCORDING TO MR HAYDEN WEEKEND FRESHWATER ANGLERS WILL BENEFIT FROM A GPS EVEN IN FAMILIAR WATERS SHOULD THEY TROLL OR DRIFT OVER A PRODUCTIVE SPOT READINGS CAN BE TAKEN AND LATER REFOUND SUCH TECHNOLOGY ALSO ALLOWS ANGLERS TO FIND SUCH UNDERWATER HOTSPOTS AT NIGHT OR LATER IN THE YEAR THROUGH ICE WHEN PACK BOOTS AND PARKAS HAVE REPLACED TENNIS SHOES AND TSHIRTS A WIDELY RESPECTED AND FANATICAL SPORTSMAN MR HAYDEN NOTED THAT GPS UNITS COULD EVEN CHANGE THE VOCABULARY OF THE OUTDOORS AS THE EQUIPMENT SPREADS AND THE NUMBER OF USERS INCREASE THINGS COULD START TO SOUND A LITTLE DIFFERENT AROUND BAITSHOPS AND COFFEEHOUSES CHUCKLED MR HAYDEN FISHERMEN MIGHT SIMPLY SAY THEY CAUGHT A MESS OF FISH OVER ON SOME LONGITUDE AND LATITUDE LOCATION RATHER THAN THE OLD STANDBY DESCRIPTIONS HOPEFULLY SUCH LINGO WILL WORK ITS WAY INTO CAMPING AS WELL MAYBE THEN MY COMPANIONS WILL START REFERRING TO A PARTICULAR BLACK HILLS PEAK BY ITS COORDINATES RATHER THAN AS THAT SILLY LITTLE RIDGE ABOVE CAMP WHERE PEARCE GOT LOST MR PEARCE IS AN OUTDOORS WRITER IN NEWTON KAN 9403240036 940324 BUSINESS BRIEF MOBIL CORP JURY AWARDS 35 MILLION IN WRONGFULDISCHARGE SUIT A STATECOURT JURY IN NEWARK NJ AWARDED 35 MILLION TO A FORMER MOBIL OIL EXECUTIVE WHO HAD FILED A WRONGFULDISCHARGE SUIT ALLEGING HE WAS FIRED AFTER DISCLOSING HEALTH PROBLEMS ASSOCIATED WITH MOBIL PRODUCTS NEIL MULLIN AN ATTORNEY REPRESENTING PLAINTIFF MYRON A MEHLMAN SAID THE JURY AWARDED 26 MILLION IN ACTUAL DAMAGES AND 875000 FOR EMOTIONAL DISTRESS THE JURY WAS STILL TO CONSIDER PUNITIVE DAMAGES AGAINST THE MOBIL CORP UNIT A SPOKESMAN AT MOBIL CORP HEADQUARTERS IN FAIRFAX VA SAID THE COMPANY IS WITHHOLDING COMMENT FOR NOW THE PLAINTIFF THE FORMER DIRECTOR OF TOXICOLOGY AND MANAGER OF MOBIL OIL'S ENVIRONMENTAL HEALTH & SCIENCE LABORATORIES IN PRINCETON NJ ALLEGED THAT HE WAS FIRED IN 1989 AFTER MAKING A PRESENTATION WHERE HE WARNED THAT THE LEVELS OF BENZENE IN CERTAIN PRODUCTS POSED A SERIOUS HEALTH AND ENVIRONMENTAL HAZARD MR MEHLMAN ALLEGED THAT HE WAS FIRED IN VIOLATION OF NEW JERSEY'S 1986 CONSCIENTIOUS EMPLOYEE PROTECTION ACT MOBIL HAS MAINTAINED IN COURT THAT MR MEHLMAN WAS FIRED FOR LEGITIMATE REASONS AND THAT IT DOESN'T OWE HIM ANY DAMAGES 9403240035 940324 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY ROBIN GOLDWYN BLUMENTHAL THE BLOOM IS BACK ON THE ROSE AS WEATHERWEARY GARDENERS PINE FOR SPRING RETAIL NURSERY SALES ARE BRISK WITH BUYING STARTING EARLIER THAN USUAL AFTER A HARSH WINTER PEOPLE ARE JUST LOOKING TO GET OUT AND GET THEIR HANDS IN THE SOIL SAYS RIC TOMASI OF A PEMBROKE MASS NURSERY SALES ARE UP 7 OVER LAST YEAR ALREADY AT JOHNNY'S NURSERY & GARDEN CENTER IN LINCOLN PARK MICH WITH STRONG DEMAND FOR ROSES TO REPLACE THOSE HURT BY BAD WEATHER IN LA THE EARTHQUAKE SPURS SALES OF POTTERY AND FOUNTAINS CRACKED BY THE DISASTER GARDENS FOR CHILDREN ARE A GROWTH AREA AS ARE BULB SALES WITH COLASANTI FARMS OF RUTHVEN ONTARIO POSTING A 25 TO 30 INCREASE SMALLER STORES SHUN DISCOUNTS IN FAVOR OF FREE GARDEN SEMINARS MARINA DEL REY GARDEN CENTER IN CALIFORNIA HIRES ONLY COLLEGE GRADS WITH ORNAMENTAL HORTICULTURE DEGREES XOTXTROPICO GARDEN STORE IN WEST HOLLYWOOD SAYS DROUGHTRESISTANT PLANTS ARE POPULAR WHILE PONDS AND WATER GARDENS CATCH ON AT ONE MIDWEST NURSERY W ATLEE BURPEE PHONE SALES SHOOT UP 25 TO 30 AS GARDENERS COMPENSATE FOR WEATHERDELAYED CATALOG DELIVERIES WATCH THE VIDEO SEE OUR AD WESTERN STATES TURN TO MOVIES TO TOUT TOURISM ARIZONA WEIGHS PUTTING ADS PLUGGING ITS ATTRACTIONS IN THE VIDEOTAPE VERSIONS OF THE RECENTLY RELEASED TOMBSTONE AND GERONIMO AN AD AND QUIZ IN THE CITY SLICKERS VIDEO IN BRITAIN DREW THOUSANDS OF INQUIRIES FOR A RANCH VACATION SAYS ROCKY MOUNTAIN INTERNATIONAL WHICH REPRESENTS WYOMING MONTANA SOUTH DAKOTA AND IDAHO RMI ALSO USED A QUIZ LAST FALL IN THE UK ON NATIVE AMERICANS IN FILMS TO PROMOTE A BUS TOUR OF INDIAN RESERVATIONS TIED TO THUNDERHEART SHOT IN SOUTH DAKOTA OKLAHOMA GIVES OUT TICKETS TO A PREMIERE OF EIGHT SECONDS A RODEO FILM SOUTH DAKOTA PINS HOPES ON WYATT EARP A KEVIN COSTNER MOVIE SHOT PARTLY IN THE STATE AND SLATED FOR RELEASE THIS SUMMER BUT IT HOLDS OFF PLANS UNTIL WE KNOW WHETHER WE END UP ON THE CUTTING FLOOR SAYS SUSAN EDWARDS SECRETARY FOR TOURISM ROCKY MOUNTAIN STATES LOOK FORWARD TO A RIVER WILD A WHITEWATERRAFTING FILM WITH MERYL STREEP AT LAST AN ACCOUNTING PROPOSAL BANKERS LIKE IT'S ON MORTGAGES BANKS HAVE BEEN IRRITATED LATELY BY ACCOUNTING RULES FORCING THEM TO POST LOSSES IF THEIR BOND HOLDINGS DROP IN PRICE BUT NOW ACCOUNTING RULEMAKERS PREPARE TO PERMIT BANKS AND OTHER MORTGAGE ORIGINATORS TO BOOST THEIR REPORTED MORTGAGESERVICING PROFITS EARLY RATHER THAN OVER THE LIFE OF THE MORTGAGE IF THEY HAVE SOLD THE MORTGAGE TO ANOTHER CONCERN FOR ONCE FASB IS MAKING BANKERS HAPPY SAYS BEAR STEARNS ANALYST PATRICIA MCCONNELL DAVID HOCHSTIM ANOTHER BEAR STEARNS ANALYST SAYS THE PROPOSAL COULD HELP LIFT STOCK PRICES OF MANY RETAIL MORTGAGE BANKERS SUCH AS ARBOR NATIONAL NORTH AMERICAN MORTGAGE AND COUNTRYWIDE CREDIT BRUCE SCHNELWAR MARGARETTEN FINANCIAL CFO SAYS THE PLAN SHOULD BE A POSITIVE FACTOR FOR ITS 1994 FOURTHQUARTER PROFITS THE FIRM ORIGINATED 60 OF ITS MORTGAGE PORTFOLIO IN 1993 IF VOTED THE CHANGE COULD BE EFFECTIVE LATE THIS YEAR COMPANIES THAT SERVICE MORTGAGES THEY HAVE PURCHASED WON'T BENEFIT FROM THE CHANGE ANALYSTS SAY ATHLETIC FOOTWEAR SALES FOR 1993 RISE 34 FROM 1992 TO 121 BILLION THAT IS A MODEST GAIN BUT BETTER THAN 1992'S 1 GAIN GROWTH IS FUELED BY THE WOMEN'S MARKET UP 9 AND THE 35ANDOLDER CROWD UP 10 SAYS MARKET RESEARCHER NPD GROUP HIKING AND WALKING SHOES MAKE STRIDES IT'S THE END OF THE RIDE FOR SUBWAY AUTOMATICTELLER MACHINES IN WASHINGTON NATIONSBANK ATLANTA ENDED A THREEYEAR TEST OF SIX ATMS THAT ALSO DISPENSED FARE CARDS IN DC METRO STATIONS THE BANK BLAMED LOW TRANSACTION VOLUME THERE MAY NOT BE A DOCTOR IN THE HOUSE BUT ONE MAY BE JUST A PHONE CALL AWAY MEDICAL CONSULTANTS OF AMERICA GOES NATIONAL WITH A CONTROVERSIAL TOLLFREE LINE TELEDR FOR 59 A FAMILY GETS SIX MONTHS OF UNLIMITED MEDICAL ADVICE IT COMPETES WITH FREE HEALTH INFO LINES NEW FEDERAL RULES BLUR THE FUTURE OF CABLETV NETWORKS HOPING TO LAUNCH SOON DESPITE TALK OF 500 CHANNELS BOOKNET FEATURING AUTHORS ECOLOGYMINDED PLANET CENTRAL TV THE GAME CHANNEL AND TV MACY'S ALL WILL HAVE A LONG WAIT BEFORE GOING NATIONAL FOR NOW CABLE SYSTEMS SIMPLY DON'T HAVE THE CHANNEL CAPACITY OPERATORS COMPLAIN THAT DETAILS DUE OUT TODAY OF FCC RATE RESTRICTIONS WILL FURTHER PINCH SPENDING FOR UPGRADES THAT MAKE 500 CHANNELS POSSIBLE THIS ENVIRONMENT ISN'T GOING TO CHANGE RIGHT AWAY SAYS NICKOLAS DAVATZES HEAD OF THE HISTORY CHANNEL SET FOR A FALL LAUNCH MOST OF THE 50 OR SO NEW NETWORKS WON'T GET OUT OF THE GATE UNTIL LATE 1994 OR 1995 SOME NETWORKS LIKE QVC'S Q2 ARE WILLING TO PAY OPERATORS 5 PER SUBSCRIBER TO BE CARRIED NOW NETWORKS TYPICALLY GET PAID BY THE OPERATOR NEW RULES WILL CAUSE OPERATORS TO LOOK FOR MORE UNREGULATED REVENUE FROM PAYPERVIEW HOMESHOPPING AND PAYTV FARE SUCH AS THE GOLF CHANNEL AND ENCORE'S SIX MOODONDEMAND CHANNELS INCLUDING WESTERNS MYSTERIES AND LOVE STORIES THE ADAM & EVE CHANNEL A PAYTV NETWORK THAT AIRS ADULT FLICKS AND SELLS LINGERIE REACHES TWO MILLION VIEWERS BRIEFS ART IMITATES LIFE AT AQUASOURCE SEAFOOD A NEW YORK FISH STORE AND GALLERY THAT EXHIBITS FISHRELATED ART ATLANTIC CITY CASINOS HEDGE BETS OFFERING 10000 IN PRIZES TO STUDENTS FOR POSTERS AND ESSAYS ON THE AGE21 REQUIREMENT FOR GAMBLING 9403240034 940324 BUSINESS BRIEF TRIBUNE CO COMPANY PLANS TO REDUCE ITS STAKE IN QUNO CORP TRIBUNE CO SAID IT PLANS TO REDUCE ITS EQUITY STAKE IN QUNO CORP A CANADIAN NEWSPRINT SUPPLIER TO 34 FROM 59 THROUGH THE SALE OF 55 MILLION COMMON SHARES IN THE COMPANY THE CHICAGOBASED PUBLISHER OF THE CHICAGO TRIBUNE AND OTHER NEWSPAPERS SAID IT EXPECTS TO SELL THE SHARES AT 2475 CANADIAN DOLLARS US18 APIECE A PRICE THAT WOULD YIELD PROCEEDS OF ABOUT C136 MILLION US995 MILLION THE SHARES WILL BE SOLD TO A SYNDICATE LED BY WOOD GUNDY INC OF TORONTO WHICH WILL OFFER THE SHARES TO THE PUBLIC IN CANADA THE STOCK SALE IS EXPECTED TO CLOSE IN TWO TO THREE WEEKS TRIBUNE SAID THE COMPANY SAID IT EXPECTS TO RECORD A SECONDQUARTER GAIN FROM THE SALE BUT DECLINED TO ELABORATE IN ADDITION TO NEWSPAPER ACTIVITIES TRIBUNE'S INTERESTS INCLUDE BOOK PUBLISHING BROADCASTING AND ENTERTAINMENT 9403240033 940324 LEISURE & ARTS A MERINGUE OF A MOVIE ABOUT MATRIMONY BY JULIE SALAMON DURING THE FIRST WEDDING IN FOUR WEDDINGS AND A FUNERAL TWO FRIENDS OF THE GROOM DISCUSS THE BRIDE SHE LOOKS LIKE A BIG MERINGUE SAYS THE WOMAN FRIEND SNIDELY HER TONE SURPRISED ME WHAT'S WRONG WITH MERINGUE I THOUGHT I LIKE THE SWEET INCONSEQUENTIALITY OF A NICE MERINGUE IN FACT IF I WERE TO CONVEY THE EXPERIENCE OF WATCHING FOUR WEDDINGS AND A FUNERAL IN TERMS OF A FOOD MERINGUE WOULD BE JUST RIGHT THERE ISN'T MUCH TO IT BUT IT IS A KIND OF PERFECTION A PRETTY THING THAT OFFERS LITTLE BURSTS OF PLEASURE ALL THE WAY TO THE END THEN IT'S GONE AND YOU'RE HUNGRY FOR SOMETHING ELSE THE PLOT SUMMARY IS ALL IN THE TITLE THIS IS A MOVIE ABOUT FOUR WEDDINGS AND A FUNERAL THE SAME GROUP OF ENGLISH FRIENDS GOES TO ALL OF THEM EITHER AS WITNESSES OR PARTICIPANTS THEIR PARTS CHANGE FROM OCCASION TO OCCASION THEY APPEAR ONLY BRIEFLY OUTSIDE THESE CEREMONIES SO THE PICTURE HAS THE FEEL OF A DRAWINGROOM COMEDY BECAUSE EVERYONE IS WEARING FORMAL CLOTHING ALMOST ALL THE TIME AND EXCEPT FOR ANDIE MACDOWELL EVERYONE IS BRITISH AND UPPER CRUST SO THEY SPEAK WELL THE MAIN CHARACTER IS CHARLES HUGH GRANT A CUTE YOUNG MAN WHO HAS AVOIDED MARRIAGE BUT FALLS IN LOVE WITH A SERENELY BEAUTIFUL AND OF COURSE MYSTERIOUS WOMAN MS MACDOWELL WHO SEEMS UNATTAINABLE CHARLES COULD HAVE BEEN JUST ANOTHER ANNOYING YUPPIE MAN LOCKED IN PROTRACTED ADOLESCENCE BUT WITH MR GRANT PLAYING HIM HE'S JUST ADORABLE IF HE WEREN'T SO GOODLOOKING HE'D BE TOO ADORABLE FOR A LEADING MAN TOO MUCH THE CUDDLY CHIPMUNK RICHARD CURTIS PROVIDED THE BREEZY WITTY SCRIPT FOR MIKE NEWELL THE BRITISH DIRECTOR WHO IS BEST KNOWN IN THIS COUNTRY FOR ENCHANTED APRIL HIS LOVELY 1991 FILM ABOUT A MAGIC SPRING VACATION IN AN ITALIAN VILLA WITH FOUR WEDDINGS AND A FUNERAL HE MAY BE ON HIS WAY TO DEVELOPING A GENRE ALL HIS OWN THE EXQUISITELY EPHEMERAL WITH STEVEN SPIELBERG'S HOLOCAUST MOVIE SCHINDLER'S LIST MAKING A SWEEP OF THE OSCARS IT'S A STRANGE AND PERHAPS APPROPRIATE TIME TO BE CONSIDERING THE FASCINATING DOCUMENTARY THE WONDERFUL HORRIBLE LIFE OF LENI RIEFENSTAHL MS RIEFENSTAHL NOW A VIGOROUS 91 YEARS OLD BECAME THE HORRIBLE RIEFENSTAHL IN 1934 WHEN SHE DIRECTED A FILM ABOUT THE NAZI PARTY RALLY IN NUREMBERG THAT MOVIE TRIUMPH OF THE WILL IS WIDELY ACCEPTED AS THE MOST PERSUASIVE PROPAGANDA FILM EVER MADE IT WAS TECHNICALLY BRILLIANT A STIRRING VISION OF HITLER AND THE PASSIONS HE AROUSED TRIUMPH WAS A STARTLING POLITICAL WEAPON WITH ITS DEIFICATION OF HITLER AND THE NAZI PARTY THROUGH THE SHREWD MANIPULATION OF IMAGERY RIEFENSTAHL DIDN'T TELL HER AUDIENCE THAT HITLER WAS GOD SHE SHOWED THEM LET THEM SEE HIS POWER FOR THEMSELVES THOUGH OF COURSE THE VISUAL POWER WAS HERS TWO YEARS LATER SHE MADE ANOTHER STUNNING FILM FOR THE NAZIS OLYMPIA ABOUT THE 1936 BERLIN OLYMPICS BECAUSE OF THESE FILMS AND HER ASSOCIATION WITH HITLER AND OTHER NAZI OFFICIALS RIEFENSTAHL WAS CLASSIFIED AS A SYMPATHIZER AFTER THE WAR SHE WAS UNIVERSALLY SHUNNED IN THE FILMMAKING WORLD AND NEVER WORKED AGAIN AS A MOVIE DIRECTOR TO THIS DAY HOWEVER SHE INSISTS THAT SHE KNEW NOTHING OF NAZI BRUTALITY TOWARD THE JEWS AT THE TIME AND THAT TRIUMPH OF THE WILL CONTAINED ONLY TWO MESSAGES OF WORK AND PEACE SO WHY BOTHER WITH THIS OLD WOMAN WHO IS EITHER A LIAR OR DELUSIONAL THE ANSWER TO THAT LIES IN THE WONDERFUL PART HER MISGUIDED GENIUS HER LIFE WAS EXTRAORDINARY BEFORE SHE BECAME A FILMMAKER WHEN SHE WAS IN HER LATE 20S RIEFENSTAHL HAD ALREADY BECOME A CELEBRITY AS A DANCER AND THEN AS A MOVIE ACTRESS SHE WAS AND IS FEARLESS AS AN ACTRESS SHE CLIMBED BAREFOOT UP STEEP ROCK MOUNTAIN FACES FOR HER FILMS HALF A CENTURY LATER WHEN SHE WAS IN HER 70S SHE BEGAN SCUBA DIVING TO TAKE UNDERWATER PICTURES WHICH SHE CONTINUES TO DO SHE HAD A FILMMAKING GIFT THAT HAS YET TO BE EQUALED BY ANOTHER WOMAN DIRECTOR THE MOVIEMAKERS WHO ARE POSTWAR GERMANS FOCUS ON HER ARTISTIC GENIUS AND THE QUESTION IT PROVOKES WHAT IS THE ARTIST'S RESPONSIBILITY TO THE WORLD THE DIRECTOR RAY MULLER PLAYS A CATANDMOUSE GAME WITH RIEFENSTAHL WHO IS IN REMARKABLY FIT CONDITION AT 91 AND STILL WEIRDLY COQUETTISH SHE'S A TOUGH INTERVIEW BECAUSE SHE HAS REMAINED A DIRECTOR IN SPIRIT USED TO TELLING OTHER PEOPLE WHERE TO STAND AND WHAT TO SAY SHE IS UNAPOLOGETIC I WAS NEVER A NAZI SHE DECLARES I WAS NEVER ANTISEMITIC AND I NEVER JOINED THE NAZI PARTY AND I NEVER DROPPED AN ATOMIC BOMB WHERE DOES MY GUILT LIE FOR THREE HOURS THE SPARRING GOES ON RIEFENSTAHL'S VOCIFEROUS DEFENSE OF HERSELF INTERRUPTED FREQUENTLY BY LENGTHY EXCERPTS FROM HER FILMS AND HER OWN ANIMATED EXPLANATIONS OF HOW SHE GOT VARIOUS SHOTS IT IS EASY TO BELIEVE FROM THE WAY SHE TALKS ABOUT HER FILMS THAT SHE CARED ONLY ABOUT THEM AND NOT ABOUT POLITICS AS SHE SAYS YET THIS INNOCENCE MAKES HER SEEM MORE MONSTROUS NOT LESS I KNOW THE REALLY IMPORTANT QUESTION ON THE MINDS OF AMERICAN MOVIEGOERS IS NAKED GUN 33 1/3 THE FINAL INSULT REALLY FUNNY YES AND THAT'S ALL YOU NEED TO KNOW BEFORE YOU ENTER THE THEATER VIDEO TIP LENI RIEFENSTAHL SAYS SHE LEARNED ABOUT THE NAZI CONCENTRATION CAMPS FOR THE FIRST TIME AFTER THE WAR WAS OVER IT WAS THEN SHE SAYS IN THE NEW DOCUMENTARY THAT SHE REGRETTED MAKING TRIUMPH OF THE WILL FOR THE FIRST TIME SHE SAYS SHE LOOKED AT THE GLORIFIED IMAGES OF SWASTIKAS AND SALUTING SS MEN FROM THE POINT OF VIEW OF THE NAZI VICTIMS AND SAW HOW HORRIBLE THEY MIGHT SEEM WITH ALL THAT IN MIND TAKE A LOOK AT TRIUMPH OF THE WILL A WONDERFUL AND HORRIBLE FILM 9403240032 940324 SMALL STOCK FOCUS SMALLCAP ISSUES POST MODERATE GAINS DESPITE LINGERING CONCERN OVER RATES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLER ISSUES OUTPERFORMED THE REST OF THE MARKET BUT UNCERTAINTY OVER INTEREST RATES HASN'T DISAPPEARED ENTIRELY A LOT OF PEOPLE ARE STAYING ON THE SIDELINES SAID BOB MCINTYRE SENIOR VICE PRESIDENT OF EQUITY TRADING PRINCIPAL EPPLER GUERIN & TURNER THERE AREN'T GRAVE CONCERNS ABOUT RATES BUT INVESTORS ARE STILL BEING CHOOSY AND CAUTIOUS THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS ROSE 064 OR 024 TO 27020 NASDAQ NATIONAL MARKET VOLUME ROSE TO 285115500 SHARES AND TOTAL VOLUME CLIMBED TO 334155000 ON TUESDAY NATIONAL MARKET VOLUME REACHED 266683500 SHARES AND TOTAL VOLUME WAS 305233000 THERE WERE 1583 NASDAQ STOCKS ADVANCING YESTERDAY AND 1441 DECLINING STOCK MARKET PLAYERS HAVE SHAKEN OFF MOST OF THE JITTERS ABOUT INTEREST RATES FOLLOWING THE FEDERAL RESERVE'S ANNOUNCEMENT TUESDAY THAT IT WOULD MOVE TO RAISE SHORTTERM RATES BUT THE FED'S DECISION TO STAY OUT OF THE MONEY MARKETS YESTERDAY ALLOWED A BIT OF CAUTION TO CREEP BACK INTO THE PICTURE TRADERS SAID EQUITY PRICES APPEARED INDIFFERENT TO BOND MARKET WEAKNESS THE TREASURY'S 30YEAR BOND FELL MORE THAN 1/2 POINT PUSHING ITS YIELD UP TO 689 AMONG GAINERS NEWS THAT LOMAS FINANCIAL DALLAS WILL CONSIDER MERGING WITH ANOTHER COMPANY PUSHED ITS STOCK UP 1 3/4 TO 9 1/8 ON THE NEW YORK STOCK EXCHANGE ON TUESDAY THE COMPANY SAID IT HAD HIRED SALOMON BROTHERS INC TO HELP IT MAXIMIZE STOCKHOLDER VALUES KIT MANUFACTURING JUMPED 1 TO 10 3/8 ON THE AMERICAN STOCK EXCHANGE THE LONG BEACH CALIF DESIGNER OF MOBILE HOMES POSTED A FIRSTQUARTER PROFIT OF 20 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 10 CENTS A SHARE ADIA SERVICES A MENLO PARK CALIF PROVIDER OF PERSONNEL SERVICES SOARED 6 3/4 TO 33 1/4 THE COMPANY SAID IT RECEIVED A MERGER PROPOSAL FROM ADIA SA ITS PRINCIPAL STOCKHOLDER IN WHICH ADIA SA WOULD ACQUIRE ALL THE ADIA SERVICES SHARES THAT IT DOESN'T ALREADY OWN SAGE TECHNOLOGIES A STAMFORD CONN COMPUTER PRODUCTS AND SERVICES FIRM CLIMBED 1 TO 13 1/2 THE COMPANY COMPLETED THE ACQUISITION OF FORSYTHE INC A PROVIDER OF COMPUTER PRODUCTS AND SERVICES IN THE CENTRAL AND SOUTHEASTERN REGIONS OF THE US TERMS WEREN'T DISCLOSED AMERICA ONLINE SHARES ROSE 3 1/2 TO 82 3/4 AFTER JUMPING 4 3/4 ON TUESDAY CHICAGO CORP CALCULATED THE TAKEOVER VALUE OF THE VIENNA VA PROVIDER OF ONLINE SERVICES AT 160 TO MORE THAN 200 A SHARE ELECTROCOM AUTOMATION PLUNGED 1 1/4 OR 18 TO 5 3/4 ON THE BIG BOARD THE ARLINGTON TEXAS COMPANY SAID IT WASN'T SELECTED TO COMPLETE PHASE II INSTALLATION OF A DOCUMENTSORTING SYSTEM FOR A MAJOR OVERNIGHT CARRIER AT ITS PRIMARY HUB FACILITY THE COMPANY DIDN'T IDENTIFY THE POTENTIAL CUSTOMER TOWER AIR DROPPED 2 1/2 TO 12 1/2 INDONESIA'S NATIONAL AIRLINE SAID THAT AS A RESULT OF INTERNAL CONSIDERATIONS UNRELATED TO TOWER THE COMPANY WON'T RECEIVE THE 1994 CONTRACT TO CARRY RELIGIOUS PILGRIMAGE TRAFFIC TO MECCA IN SAUDI ARABIA TOWER SAID THE CONTRACT ACCOUNTED FOR 81 OF ITS FISCAL 1993 REVENUE OF 3418 MILLION HARRY'S FARMERS MARKET ATLANTA FELL 2 1/4 TO 13 THE WALL STREET JOURNAL REPORTED THAT THE COMPANY IS CURTAILING STORE EXPANSION PLANS IN THE FACE OF RECENT LOSSES SEVERAL GENERIC DRUG STOCKS FELL AFTER GRUNTAL & CO ANALYST DAVID SAKS CUT HIS RATING ON THE INDUSTRY TO NEUTRAL FROM OUTPERFORM CITING DEEP DISCOUNTS BY BRANDNAME DRUG MAKERS ZENITH LABORATORIES NORTHVALE NJ FELL 1 1/2 TO 15 1/4 BARR LABORATORIES POMONA NY LOST 1/2 TO 17 1/8 ON THE AMEX PHARMACEUTICAL RESOURCES SPRING VALLEY NY EDGED 3/8 LOWER TO 10 5/8 ON THE NEW YORK STOCK EXCHANGE PUREPAC ELIZABETH NJ GAVE UP 1 1/8 TO 9 1/4 AND WATSON PHARMACEUTICALS CORONA CALIF EASED 3/4 TO 16 1/4 ADAC LABORATORIES A MILPITAS CALIF ELECTRONIC MEDICAL IMAGING CONCERN STUMBLED 1 3/4 TO 9 1/2 THE COMPANY SAID IT EXPECTS FISCAL SECONDQUARTER BOOKINGS TO BE 10 TO 20 BELOW THE YEAREARLIER QUARTER MARY LISANTI VICE PRESIDENT AND PORTFOLIO MANAGER OF SMALLCAP AND MIDCAP FUNDS AT BANKERS TRUST CO IS BETTING SMALLCAP STOCKS WILL CONTINUE TO HAVE A BANNER YEAR AND THAT RATE CONCERNS WILL BE NEARLY IRRELEVANT OVER THE LONGER TERM THE FOCUS WILL BE MORE ON EARNINGS POWER AND THE RATE OF EARNINGS GROWTH MS LISANTI SAID SHE POINTED TO THE FACT THAT SINCE MARCH 1 THE RUSSELL 2000 HAS GAINED 221 AND HIT THREE CONSECUTIVE RECORDS BY CONTRAST THE DOW JONES INDUSTRIAL AVERAGE HAS GAINED 158 FOR THE MONTH TO DATE AND THE STANDARD & POOR'S 500STOCK INDEX IS UP 088 NEITHER HAS SET CLOSING HIGHS THIS MONTH SINCE THE YEAR BEGAN THE RUSSELL INDEX HAS CLIMBED 449 THE DOW INDUSTRIALS HAVE IMPROVED 307 AND THE S&P 500 HAS INCREASED JUST 045 SMALLCAP STOCKS HAD THREE CORRECTIONS LAST YEAR IN FEBRUARY APRIL AND OCTOBER SO THEY WERE SET UP TO OUTPERFORM THIS YEAR MS LISANTI SAID SMALLER ISSUES ALSO ENJOYED BIGGER GAINS LAST YEAR THAN THOSE POSTED BY LARGECAP STOCKS MS LISANTI SAID SHE IS FOCUSING ON SMALL REGIONAL BANKS THAT COULD BE GOOD TAKEOVER PLAYS TECHNOLOGY STOCKS AUTOMOTIVE SERVICES COMPANIES SEMICONDUCTOR EQUIPMENT FIRMS AND SMALLER INDUSTRIAL COMPANIES WITH GOOD EXPORT CAPABILITIES 9403240031 940324 BUSINESS BRIEF AMERICAN GREETINGS CORP AD CAMPAIGN IS LAUNCHED TO PUSH CREATACARD SALES AMERICAN GREETINGS CORP CLEVELAND SAID IT WOULD LAUNCH A SIGNIFICANT MULTIMILLION DOLLAR CAMPAIGN TO PROMOTE ITS CREATACARD SALES TO CONSUMERS IN THE U S AND CANADA THE ADVERTISING CAMPAIGN WILL USE NATIONAL AND LOCAL TELEVISION COMMERCIALS AS WELL AS RADIO BROADCASTS IN 60 MARKETS TO PROMOTE CREATACARD A SYSTEM DESIGNED TO ALLOW CONSUMERS TO CREATE PERSONALIZE AND MANUFACTURE THEIR OWN GREETING CARDS WITHIN ABOUT 2 1/2 MINUTES THE COMMERCIALS WILL AIR ON NETWORK TELEVISION AND CABLE STATIONS INCLUDING LIFETIME USA AND NICKELODEON THE COMPANY SAID AMERICAN GREETINGS OPERATES ABOUT 8000 CREATACARD KIOSKS IN DRUGSTORES SUPERMARKETS CARD AND SPECIALTY SHOPS AND MASS RETAIL OUTLETS ACROSS THE UNITED STATES CANADA THE UNITED KINGDOM IRELAND AND PUERTO RICO EXPECTED ANNUAL REVENUE FOR CREATACARD FOR THE FISCAL YEAR ENDED FEB 28 1994 IS ABOUT 35 MILLION THE COMPANY SAID CREATACARD IS A SUBSIDIARY OF AMERICAN GREETINGS A MANUFACTURER AND DISTRIBUTOR OF GREETING CARDS 9403240030 940324 BUSINESS BRIEF HEILIGMEYERS CO FISCAL FOURTHQUARTER PROFIT ROSE 49 SALES GAINED 33 HEILIGMEYERS CO A RICHMOND VA HOMEFURNISHINGS RETAILER SAID NET INCOME ROSE 49 IN ITS FISCAL FOURTH QUARTER FOR THE QUARTER ENDED FEB 28 NET WAS 143 MILLION OR 28 CENTS A SHARE COMPARED WITH NET INCOME OF 96 MILLION 21 CENTS A SHARE A YEAR AGO REVENUE FOR THE QUARTER INCREASED 33 TO 2419 MILLION LAST YEAR THE COMPANY EXPANDED ITS REGION THROUGH THE ACQUISITION OF MCMAHAN'S FURNITURE CO A 92STORE CHAIN IN WESTERN MARKETS HEILIGMEYERS WHICH OPERATES 570 STORES IN 22 STATES SAID IT PLANS TO OPEN 50 TO 60 STORES THIS YEAR HEILIGMEYERS ALSO SAID IT IMPROVED OPERATIONS INCLUDING TARGETING DIRECTMAIL ADVERTISING AND IMPLEMENTING A SALES ANALYSIS AND INVENTORY CONTROL SYSTEM IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ITS SHARES FELL 75 CENTS TO 35 FOR THE YEAR NET INCOME WAS 55 MILLION OR 112 A SHARE UP 55 FROM 38 MILLION OR 84 CENTS A SHARE A YEAR AGO REVENUE INCREASED 31 TO 8638 MILLION 9403240029 940324 BUSINESS BRIEF BRODERBUND SOFTWARE INC FISCAL 2NDQUARTER EARNINGS ROSE 21 ON HIGHER DEMAND BRODERBUND SOFTWARE INC CITING INCREASED DEMAND FOR ITS CDROM TITLES SAID FISCAL SECONDQUARTER NET INCOME JUMPED 21 ON A 4 GAIN IN REVENUE THE NOVATO CALIF SOFTWARE CONCERN'S NET FOR THE PERIOD ENDED FEB 28 WAS 45 MILLION OR 44 CENTS A SHARE COMPARED WITH 37 MILLION OR 37 CENTS A SHARE A YEAR EARLIER REVENUE WAS 254 MILLION UP FROM 244 MILLION THE RESULTS BEAT ANALYSTS' CONSENSUS ESTIMATES OF 42 CENTS A SHARE MONTGOMERY SECURITIES ANALYST BETTY LYTER ATTRIBUTED THE IMPROVEMENT TO A SLIGHTLY DIFFERENT PRODUCT MIX BRODERBUND'S YEARAGOQUARTER INCLUDED TWO MONTHS OF REVENUE FROM A LOWER PROFIT MARGIN SOFTWARE PRODUCT FOR MAXIS SOFTWARE WHILE THIS YEAR'S SECOND QUARTER DIDN'T ELECTRONIC ARTS INC SAN MATEO CALIF AGREED IN FEBRUARY TO BUY BRODERBUND IN A STOCK SWAP VALUED AT 400 MILLION 9403240028 940324 LETTERS TO THE EDITOR OUR MEDICAL SYSTEM IS HEALTHY THANK YOU DR OTTO L WILLBANKS'S MARCH 7 LETTER TO THE EDITOR CANADA'S HEALTH SYSTEM ON BRINK OF BANKRUPTCY WAS MOST INACCURATE CANADA'S HEALTH SYSTEM IS AS BANKRUPT AS THE COUNTRY'S DEFICIT OR AS BANKRUPT AS AMERICA'S 3 TRILLIONPLUS DEFICIT IN OTHER WORDS GOVERNMENTS DON'T GO BANKRUPT THE CANADIAN MEDICAL SYSTEM IS NOT A FAILURE I AND MY FRIENDS HAVE THE MEANS TO OPT OUT AND GO TO PRIVATE MEDICINE YET WE HAVE CHOSEN TO STAY WITHIN THE SYSTEM MEDICAL CARE IS NOT HARD TO GET DESPITE WHAT THE AMERICAN MEDIA HAS SAID A TWOHOUR VISIT IN FEBRUARY TO AN AMERICAN HOSPITAL EMERGENCY DEPARTMENT WITH COMPLAINTS OF A SORE ELBOW COST ME 1600 CANADIAN TALK ABOUT A FAILURE OUR SYSTEM WORKS BECAUSE IT IS SIMPLE DIRECT AND HAS NO INTERFERENCE FROM LOBBYISTS THE MEDIA THE AMA AND PUBLICLY TRADED HEALTH PROMOTERS 9403240027 940324 INTERNATIONAL BRIEF AB ASTRA COMPANY'S ANTIULCER AGENT IS APPROVED BY UK OFFICIALS SWEDISH PHARMACEUTICAL GROUP AB ASTRA SAID ITS BESTSELLING PRODUCT ANTIULCER AGENT LOSEC HAD BEEN APPROVED BY AUTHORITIES IN THE UNITED KINGDOM FOR USE WITH THE ANTIBIOTIC AMOXYCILLIN FOR TREATMENT OF DUODENAL ULCERS ASSOCIATED WITH THE BACTERIA HELICOBATER PYLORI ASTRA ALSO SAID IT HAS FILED AN APPLICATION FOR REGISTRATION OF ITS ANTIASTHMA DRY POWDER PULMICORT TURBUHALER WITH THE US FOOD AND DRUG ADMINISTRATION 9403240026 940324 LORAL FUNDS START OF GLOBAL PHONE SYSTEM ANNOUNCEMENT IS EXPECTED OF PARTNERS FINANCING TOTALING 275 MILLION BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LORAL CORP STEPPING INTO THE CROWDED SATELLITECOMMUNICATIONS RACE IS EXPECTED TO ANNOUNCE TODAY THAT IT HAS ARRANGED ENOUGH FUNDING 275 MILLION FOR THE FIRST PHASE OF THE GLOBALSTAR MOBILETELEPHONE SYSTEM IT IS ASSEMBLING WITH PARTNER QUALCOMM INC NEW YORKBASED LORAL PRIMARILY A DEFENSEELECTRONICS CONCERN ALSO WILL NAME SEVEN OTHER PARTNERS OR INVESTORS FOR THE PROPOSED 48SATELLITE 18 BILLION SYSTEM THEY ARE AIRTOUCH COMMUNICATIONS BEING SPUN OFF FROM SAN FRANCISCOBASED PACIFIC TELESIS GROUP ALCATELALSTHOM CGE OF FRANCE A VENTURE FORMED BY DACOM CORP AND HYUNDAI ELECTRONICS INDUSTRIES CO BOTH OF SOUTH KOREA THE DEUTSCHE AEROSPACE UNIT OF DAIMLERBENZ AG OF GERMANY VODAFONE GROUP PLC OF BRITAIN AND ALENIA SPAZIO SPA OF ITALY QUALCOMM IS BASED IN SAN DIEGO PARTNERS IN THE PROJECT HAVE INVESTED AS MUCH AS 375 MILLION EACH WITH THE EXCEPTION OF THE ITALIAN COMPANY THE NEW PARTNERS ARE EXPECTED TO HAVE ROLES AS PROVIDERS OF THE MOBILEPHONE SERVICE THAT GLOBALSTAR WILL BEGIN PROVIDING THROUGH LOCAL PHONE NETWORKS IN EUROPE ASIA AFRICA NORTH AMERICA AND SOUTH AMERICA THE FIRST 24 SATELLITES ARE DUE TO BE IN PLACE IN APRIL 1998 LESS THAN A YEAR LATER THE COMPANIES EXPECT TO HAVE ALL THE SATELLITES IN PLACE BY 2002 THEY ANTICIPATE HAVING 27 MILLION SUBSCRIBERS AND ANNUAL REVENUE OF 16 BILLION AND BY 2012 AS MANY AS 16 MILLION USERS WORLDWIDE ARE PROJECTED THE DETERMINATION OF LORAL TO PRESS AHEAD WITH GLOBALSTAR TURNS UP THE HEAT ON RIVALS MOVING INTO THE GLOBAL SATELLITECOMMUNICATIONS MARKET EARLIER THIS WEEK COMMUNICATIONS AND COMPUTING GIANTS MCCAW CELLULAR COMMUNICATIONS INC AND MICROSOFT CORP ANNOUNCED PLANS FOR AN 840SATELLITE COMMUNICATIONS SYSTEM COSTING 9 BILLION THOSE PLANS HAVE SPARKED WIDESPREAD SKEPTICISM AMONG TECHNOLOGISTS OVER THE SCALE GLOBALSTAR'S MOST DIRECT RIVAL HOWEVER REMAINS THE 66SATELLITE IRIDIUM INC PROJECT LED BY MOTOROLA INC ALTHOUGH TRW INC'S PROPOSED 12SATELLITE ODYSSEY SYSTEM WOULD BE ANOTHER COMPETITOR SOME IRIDIUM BACKERS ARE AMONG THOSE WHO BELIEVE THE FEDERAL COMMUNICATIONS COMMISSION WILL ULTIMATELY ISSUE NO MORE THAN TWO LICENSES FOR SUCH SYSTEMS BUT LORAL CHAIRMAN BERNARD SCHWARTZ SAID HE IS CLOSER TO THAT PROCESS THAN MOST PEOPLE AND AT LEAST THREE SUCH SYSTEMS ARE LIKELY TO WIN GOVERNMENT APPROVAL MR SCHWARTZ WHO HAS SUPPORTED THE PRESIDENT POLITICALLY HAS CLOSE TIES TO THE CLINTON ADMINISTRATION MR SCHWARTZ SAID A VERY BIG DISTINCTION SETTING GLOBALSTAR APART FROM OTHER SATELLITE SYSTEMS IS THAT NEARLY ALL GLOBALSTAR INVESTORS PROVIDE COMMUNICATIONS SERVICES THEMSELVES AND WILL HELP IN DELIVERY OF GLOBALSTAR SERVICE IN THEIR AREAS THAT WILL SPEED LOCAL APPROVALS AND HOLD DOWN COSTS HE SAID ADDING THAT THEIR EXPERTISE AND THEIR LARGE STAKE COMBINE TO OFFER A UNIQUE VALIDATION OF THE SYSTEM WITH THESE EDGES GLOBALSTAR SYSTEM CAN BE HIGHLY COMPETITIVE HE SAID THE SCALE AND COST OF THE MCCAWGATES PROJECT IS DAUNTING HE SAID AND IRIDIUM PROMISES TO COST ABOUT 210 A MINUTE MORE THAN THREE TIMES THE 65CENTAMINUTE SERVICE PRICE PROJECTED BY GLOBALSTAR IRIDIUM BASED IN WASHINGTON DC HAS SAID ITS TOTAL COST WILL BE ABOUT 337 BILLION SHARPLY HIGHER THAN GLOBALSTAR'S BUT SAID IRIDIUM SPOKESMAN JOHN WINDOLPH YOU GET WHAT YOU PAY FOR WITH A HIGHER SIGNAL STRENGTH FOR IRIDIUM AND SERVICE DIRECT TO USERS' HANDSETS WITHOUT PASSING THROUGH LOCAL TELEPHONE SYSTEMS HE QUESTIONED WHETHER GLOBALSTAR'S ESTIMATES OF PERMINUTE COSTS INCLUDE ALL CHARGES ADDED BY LOCAL PHONE COMPANIES AND HE NOTED THAT IRIDIUM'S 800 MILLION IN FIRSTPHASE FINANCING ALREADY COMPLETE INCLUDES INVESTMENTS BY NUMEROUS SERVICE PROVIDERS AMONG THEM SPRINT CORP IN THE US AND OTHERS IN CANADA JAPAN AND ITALY SOME ANALYSTS ARGUE THAT IN THE END EACH OF THE SATELLITETELEPHONE VENTURES IS PURSUING A SLIGHTLY DIFFERENT MARKET IRIDIUM FOR INSTANCE WILL APPEAL TO HIGHEND USERS SUCH AS EXECUTIVES WHO WANT TO BE REACHED ANYWHERE ANYTIME AT ANY COST WHILE GLOBALSTAR WILL APPEAL TO FARFLUNG GOVERNMENTS AND COMMUNITIES SEEKING A LOWERCOST SERVICE AS THE COMPETITION HEATS UP HOWEVER OTHERS SAY SOME PROJECTS ARE LIKELY TO FADE AWAY OR FAIL EVENTUALLY THE PROBLEM IS THEY'RE ALL CHASING EFFECTIVELY THE SAME MARKET AND THEY'RE ALL CHASING THE SAME MONEY SAID JEREMY ROSE OF COMMUNICATION SYSTEMS LTD A CONSULTING FIRM IN ST ALBANS ENGLAND ADDED MEL PHELPS A TELECOMMUNICATIONS ANALYST FOR HAMBRECHT & QUIST IN SAN FRANCISCO THE DARWINIAN THEORY WILL PREVAIL I'M SURE 9403240025 940324 WHAT'S NEWS WORLDWIDE MEXICO'S COLOSIO DIED AFTER BEING SHOT DURING A CAMPAIGN RALLY IN TIJUANA THE RULING PARTY'S PRESIDENTIAL CANDIDATE WAS SHOT TWICE IN THE HEAD AND ABDOMEN SEVERAL HOURS LATER THE MEXICAN OFFICE OF THE PRESIDENCY SAID HE HAD DIED COLOSIO HAD UNDERGONE EMERGENCY SURGERY AND AT ONE POINT A TRANSFER TO SAN DIEGO WAS CONSIDERED AND REJECTED AT LEAST ONE SUSPECT WAS SEIZED IMMEDIATELY BY THE CROWD AND AUTHORITIES LATER SAID THEY HAD TWO IN CUSTODY BUT THEY GAVE NO INDICATION OF WHAT MAY HAVE MOTIVATED THE ATTACK THE ASSASSINATION CAME AS COLOSIO APPEARED TO BE HEADED FOR A SOLID VICTORY IN THE ELECTIONS SET FOR AUGUST THE SHOOTING IS SURE TO CONVULSE THE COUNTRY ISRAELI TROOPS FIRED ROCKETS INTO AN APARTMENT BUILDING IN HEBRON DURING A FIGHT WITH HAMAS GUERRILLAS THAT LEFT FOUR DEAD MILITARY CENSORS BANNED REPORTS ON THE 22HOUR BATTLE UNTIL IT WAS OVER IN CAIRO ISRAEL AND THE PLO REPORTED PROGRESS AT NEGOTIATIONS AIMED AT REVIVING STALLED PEACE TALKS THE TALKS ARE FOCUSING ON PALESTINIAN SECURITY SOUTH AFRICA WARNED ZULU LEADERS TO COOPERATE IN ALLRACE ELECTIONS NEXT MONTH IN THEIR APARTHEIDERA HOMELAND OF KWAZULU SIMILAR WARNINGS PRECEDED GOVERNMENT TAKEOVERS OF BOPHUTHATSWANA AND CISKEI TWO OTHER BLACK HOMELANDS THAT HAD REFUSED TO ALLOW VOTING ZULU LEADER BUTHELEZI SAID HE WOULD ALLOW VOTING BUT WOULDN'T TAKE PART AN AEROFLOT JETLINER CRASHED IN SIBERIA KILLING ALL 75 ABOARD INCLUDING PASSENGERS FROM THE US HONG KONG TAIWAN CANADA BRITAIN AND INDIA RUSSIAN AUTHORITIES SAID THERE WAS NO INDICATION WHAT CAUSED THE JET A TWOYEAROLD AIRBUS A310 FLYING FROM MOSCOW TO HONG KONG TO PLUNGE INTO A REMOTE FOREST NEAR THE MONGOLIAN BORDER NORTH KOREA WARNED THE US NOT TO FORGET THE LESSONS OF THE KOREAN WAR AS SOUTH KOREA PUT ITS 650000 TROOPS ON A HIGHER LEVEL OF ALERT THAN IT USUALLY ORDERS DURING PERIODS OF TENSION WITH THE NORTH A STATE DEPARTMENT SPOKESMAN CALLED THE NORTH KOREAN RHETORIC BELLIGERENT AND SAID THAT THE US WAS PREPARED FOR ANY CONTINGENCY A SARAJEVO BRIDGE OPENED TO CIVILIANS FOR THE FIRST TIME IN 23 MONTHS RESTORING A LINK BETWEEN MUSLIM AND SERB AREAS THE REOPENING OF SEVERAL ROADS WITHIN AND OUTSIDE THE CITY ALSO ADDED TO A SENSE OF RETURNING NORMALCY AFTER A TWOYEAR SERB SIEGE NEAR MAGLAJ HOWEVER SERB FORCES LOOTED 94 TONS OF RELIEF SUPPLIES FROM A UN CONVOY THE WHITEWATER PROSECUTOR SOUGHT DOCUMENTS FROM A BOND DEALER INVOLVING FORMER ASSOCIATE ATTORNEY GENERAL HUBBELL AND WHITE HOUSE AIDE THOMASSON THOMASSON ONCE WORKED FOR THE DEALER DAN LASATER WHOSE FIRM DEALT IN ARKANSAS BONDS WHILE CLINTON WAS GOVERNOR LASATER ALSO WAS A CLINTON FUNDRAISER SOMALIA PEACE TALKS BROKE DOWN AND A SPECIAL UN REPRESENTATIVE TO THE NEGOTIATIONS SAID IT APPEARED UNLIKELY THAT THE IMPASSE WOULD BE RESOLVED UN OFFICIALS SAID THE FAILURE TO REACH AN AGREEMENT ON STEPS TOWARD FORMING A GOVERNMENT COULD LEAD TO RENEWED FIGHTING FOLLOWING THE DEPARTURE OF PEACEKEEPING TROOPS THIS MONTH TWO AIR FORCE PLANES COLLIDED OVER POPE AIR FORCE BASE IN NORTH CAROLINA SHOWERING DEBRIS ON A PLANE ON THE RUNWAY AND PARATROOPERS IN A STAGING AREA BELOW KILLING 15 AND INJURING 82 THE CREWS OF THE TWO PLANES THAT COLLIDED AN F16D FIGHTER AND A C130 TRANSPORT WEREN'T INJURED THE FIGHTER CREW EJECTED AND THE TRANSPORT LANDED SAFELY ADMINISTRATION OFFICIALS SAID WHITE HOUSE AIDE KENNEDY'S DUTIES WILL BE REDUCED FOLLOWING REVELATIONS THAT HE FAILED TO PAY SOCIAL SECURITY TAXES FOR A NANNY THE OFFICIALS SAID KENNEDY WILL NO LONGER SUPERVISE ISSUANCE OF WHITE HOUSE PASSES OR BE RESPONSIBLE FOR DOING BACKGROUND CHECKS US PROSECUTORS ARE WEIGHING CRIMINAL CHARGES AGAINST REP TUCKER OF CALIFORNIA A DEMOCRAT PEOPLE CLOSE TO THE SITUATION SAID A THREEYEAR INVESTIGATION OF TUCKER FOCUSED ON ALLEGED BRIBERY WHILE HE WAS THE MAYOR OF COMPTON IN '91 AND '92 TUCKER DENIED ANY WRONGDOING 9403240024 940324 TOP CANDIDATE TO LEAD MEXICO IS ASSASSINATED COLOSIO SHOT DEAD DURING TIJUANA CAMPAIGN STOP TWO SUSPECTS ARE HELD BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL TIJUANA MEXICO PRESIDENTIAL CANDIDATE LUIS DONALDO COLOSIO WAS SHOT AND KILLED LAST NIGHT DURING A POLITICAL RALLY AT A HILLSIDE SLUM HERE MR COLOSIO THE CANDIDATE OF THE RULING PARTY THE PRI WAS SHOT IN THE TORSO AND THE HEAD AND WAS CARRIED AWAY TO A HOSPITAL ALMOST NO ONE HEARD THE SHOTS WHICH APPARENTLY CAME AT CLOSE RANGE SO THE COMMOTION SURROUNDING MR COLOSIO SHOCKED THE CROWD OF ABOUT 4000 IN THE NEIGHBORHOOD OF LOMAS TAURINAS DOZENS SEIZED AT LEAST ONE SUSPECT BEATING HIM BLOODY WITH A PLANK AND STONING HIM WHILE THE CROWD SHOUTED KILL HIM KILL HIM KILL HIM HUNDREDS OF OTHERS IN THE CROWD BEGAN CRYING A SPOKESMAN FOR THE PRI OR INSTITUTIONAL REVOLUTIONARY PARTY LIEBANO SAENZ SAID ON NATIONAL TELEVISION THAT ONE OF THE BULLETS ENTERED THE 44YEAROLD MR COLOSIO'S SKULL NEAR THE EAR AND EXITED HIS CRANIUM THE MEXICAN OFFICE OF THE PRESIDENCY REPORTED THAT MR COLOSIO DIED LATE LAST NIGHT AUTHORITIES SAID THAT THEY HAD TWO SUSPECTS IN CUSTODY BUT THEY DIDN'T RELEASE ANY NAMES OR SAY WHAT THEIR MOTIVATION MIGHT HAVE BEEN FOR SHOOTING MR COLOSIO TELEVISA THE TELEVISION MONOPOLY THAT OFTEN ACTS AS AN UNOFFICIAL SPOKESMAN FOR THE GOVERNMENT BROADCAST PICTURES OF THE TWO ALLEGED GUNMEN AND SAID ONE OF THEM WAS ABOUT 25 YEARS OLD WHILE THE OTHER WAS IN HIS 40S THE ASSASSINATION COMES JUST AS THINGS HAD FINALLY APPEARED TO BE SETTLING DOWN IN THE MEXICAN PRESIDENTIAL RACE APPARENTLY CLEARING THE WAY FOR MR COLOSIO TO RECORD A SOLID VICTORY IN THE AUGUST ELECTIONS THE BIGGEST OBSTACLE TO A COLOSIO WIN HAD APPEARED TO DISAPPEAR ON TUESDAY WHEN MANUEL CAMACHO SOLIS THE POPULAR NEGOTIATOR OF PEACE IN CHIAPAS SAID HE WOULDN'T RUN FOR THE PRESIDENCY BUT THE SHOOTING OF MR COLOSIO IS SURE TO CONVULSE MEXICO ONCE AGAIN THE STOCK MARKET HAD RECOVERED ALMOST 7 IN THE PAST TWO DAYS AND THE PESO HAD STABILIZED AGAINST THE DOLLAR FOLLOWING HEAVY DECLINES THAT STEMMED FROM REPORTS OF SLOWERTHANEXPECTED ECONOMIC GROWTH AND THE UPRISING IN CHIAPAS THE PROSPECT OF A COLOSIO WIN HAD REASSURED INVESTORS WHO SAW HIM CONTINUING THE FREEMARKET ECONOMIC POLICIES OF PRESIDENT CARLOS SALINAS DE GORTARI BUT THE STOCK MARKET AND PESO ARE CERTAIN TO TUMBLE AGAIN TODAY AS INVESTORS ON TOP OF EVERYTHING ELSE START TO WORRY ABOUT SPREADING POLITICAL VIOLENCE ALMOST ALL OF PRESIDENT SALINAS'S TOP ADVISERS GATHERED LAST NIGHT AT LOS PINOS HIS OFFICIAL RESIDENCE TO TALK ABOUT CONTINGENCY PLANS AMONG OTHER THINGS THEY WERE DISCUSSING THE NAMING OF ANOTHER PRESIDENTIAL CANDIDATE OR EVEN THAT THE MEXICAN CONSTITUTION MIGHT ALLOW PRESIDENT SALINAS TO REMAIN IN OFFICE BEYOND THE END OF HIS TERM LATE THIS YEAR BECAUSE OF THE CRISIS HERE THERE ARE HOWEVER COMPLICATIONS SEVERAL POSSIBLE CANDIDATES SUCH AS FINANCE MINISTER PEDRO ASPE APPARENTLY CAN'T RUN AT LEAST FOR THE MOMENT BECAUSE THE MEXICAN CONSTITUTION PROVIDES THAT SOMEONE NEEDS TO BE OUT OF POLITICAL OFFICE FOR 90 DAYS BEFORE BECOMING A CANDIDATE ANALYSTS SAID AND IF PRESIDENT SALINAS TRIES TO STAY IN OFFICE THE POLITICAL OPPOSITION WILL TRY TO ACCUSE HIM OF EMPIRE BUILDING IN THE MIDST OF THE MEETING PRESIDENT SALINAS EMERGED TO ISSUE A BRIEF STATEMENT CALLING THE ASSASSINATION ATTEMPT ON HIS CLOSE FRIEND AND PROTEGE A COWARDLY ACT THAT HURTS ALL OF MEXICO WHEN MR COLOSIO WAS SHOT HE HAD JUST FINISHED GIVING ONE OF THE BEST SPEECHES OF A CAMPAIGN THAT HAD BEEN LACKLUSTER MR COLOSIO HAD BEEN CRITICIZED DURING HIS CAMPAIGN FOR NOT APPEARING TO CARE ENOUGH ABOUT THE MANY POOR PEOPLE IN MEXICO BUT LAST NIGHT HE VENTURED INTO ONE OF THE WORST NEIGHBORHOODS OF TIJUANA A CITY KNOWN FOR ITS DRUGRELATED VIOLENCE TO GIVE A FORCEFUL SPEECH ON POVERTY HOW GOOD IT IS TO BE HERE MR COLOSIO SAID IN HIS POWERFUL BARITONE SPEAKING AT A SITE JUST ACROSS A BRIDGE SO RICKETY THAT AUTHORITIES ALLOWED ONLY FOUR OR FIVE PEOPLE TO CROSS AT ONE TIME I WANT TO BE PRESIDENT OF MEXICO SO THAT I CAN BE CLOSE TO THE WHOLE POPULATION OF TIJUANA AND THE STATE OF BAJA CALIFORNIA I KNOW WHAT IT IS TO LIVE THE LIFE OF ALL OF YOU IN THE FACTORY AS SOON AS HE FINISHED SPEAKING MUSIC BLASTED OUT OVER THE LOUDSPEAKERS SO LOUDLY THAT ALMOST NO ONE HEARD THE GUNSHOTS WHEN THE ONE SUSPECT WAS MOBBED BY THE CROWD HE WAS BEATEN UNTIL HE WAS COVERED WITH BLOOD HE WAS FINALLY PUSHED INTO A SECURITY VAN BUT EVEN THEN THE CROWD STONED THE VAN AND TRIED TO PREVENT IT FROM LEAVING THE GUNMAN WAS A STOCKY POORLY DRESSED MAN BUT NOTHING MORE COULD BE IMMEDIATELY LEARNED ABOUT HIM SECURITY IS GENERALLY LAX IN MEXICAN POLITICS AT LEAST BY US STANDARDS AN AIDE TO PRESIDENT SALINAS ASKED WHY ONLY ONE SECURITY GUARD WAS IN EVIDENCE AT A RALLY A MONTHS AGO SAID WITH A STRAIGHT FACE THAT THE LOVE OF THE PEOPLE IS HIS PROTECTION IN THE PAST SECURITY HASN'T BEEN A PROBLEM BECAUSE SINCE THE REVOLUTION ENDED IN 1920 MEXICO HASN'T HAD THE TRADITION OF POLITICAL ASSASSINATIONS THAT THE US HAS CONCERNS OVER CHIAPAS HAD APPEARED TO MAKE SOME PEOPLE IN THE COLOSIO CAMPAIGN NERVOUS AND SECURITY WAS MUCH TIGHTER THAN NORMAL FOR THE RALLY IN TIJUANA A GROUP OF PRESIDENTIAL BODYGUARDS KNOWN AS THE ESTADO MAYOR WERE WITH MR COLOSIO EVEN THOUGH MEXICAN LAW APPARENTLY PROVIDES THAT THEY CAN PROTECT ONLY THE PRESIDENT IN ADDITION THERE WERE TWO TRUCKLOADS OF FEDERAL POLICE PRESENT TO PROTECT THE PRI CANDIDATE TIJUANA IS AN ESPECIALLY SENSITIVE AREA BECAUSE OF THE HISTORY OF DRUGRELATED VIOLENCE IN THIS BORDER CITY A TIJUANABASED DRUG GANG WAS APPARENTLY ONE OF THOSE INVOLVED IN THE ASSASSINATION OF A CARDINAL IN GUADALAJARA LAST MAY 9403240023 940324 LETTERS TO THE EDITOR INACTION AND SILENCE IN THE FACE OF GENOCIDE CERTAINLY AMERICAN AND MORE PRECISELY WHITE HOUSE INACTION TO THE WHOLESALE DESTRUCTION OF BOSNIAHERZEGOVINA MAY BE TELLING US DISTURBING THINGS ABOUT OURSELVES WE WOULD RATHER NOT ADMIT AMERICANS' INACTION ON BOSNIA STIRS CRITICS TO DEBATE AND DESPAIR PAGE ONE MARCH 18 BUT IT IS SIMPLY WRONG TO SUGGEST NOTHING WAS DONE BECAUSE THE VICTIMS ARE MUSLIM AS SUSAN SONTAG STATED MORE THAN THREE YEARS AGO SEVERAL HUNDRED MILES NORTH OF SARAJEVO ANOTHER CITY WAS SURROUNDED BY SERBIAN GUNNERS THE CITY WAS VUKOVAR A CROATION CHRISTIAN CITY OF ABOUT 50000 THOUSANDS OF CHRISTIAN CIVILIANS WERE MASSACRED AND THE CITY REDUCED TO RUBBLE WAS CAPTURED BY MARAUDING SERBS NOT ONLY DID CROATIAN TOWNS AND CITIES SUCH AS DUBROVNIK KNOWN TO MANY JETSET AMERICANS GET NO AMERICAN AID THEY DID NOT EVEN GET AMERICAN SYMPATHY AS DID BOSNIA WHERE WERE SUSAN SONTAG AND THE INTELLECTUALS THEN THERE WAS NO AMERICAN COMMITTEE TO SAVE CROATIA TODAY 5000 PEOPLE FROM VUKOVAR REMAIN MISSING AND THE WORLD IS SILENT THERE IS ONLY ONE THING WORSE THAN INACTION IN THE FACE OF GENOCIDE AND THAT IS INACTION AND SILENCE 9403240021 940324 ECONOMY SIX MAJOR BANKS ANNOUNCE BOOST IN PRIME RATE QUARTERPOINT RISE TO 625 IS FIRST IN FIVE YEARS IMPACT TO BE MODERATE BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL SIX BIG BANKS FOLLOWING THE FEDERAL RESERVE'S TIGHTENING OF CREDIT NUDGED UP THEIR PRIME LENDING RATES A QUARTER OF A PERCENTAGE POINT TO 625 THE FIRST INCREASE IN FIVE YEARS THE INCREASES WERE ANNOUNCED BY NORWEST CORP BANC ONE CORP BANK OF NEW YORK CO CHEMICAL BANKING CORP CHASE MANHATTAN CORP AND FIRST CHICAGO CORP ANALYSTS SAID OTHER MAJOR BANKS ARE LIKELY TO FOLLOW PAST EXPERIENCE WOULD SUGGEST THAT THE INCREASE WILL SPREAD TO THE REST OF THE INDUSTRY SAID ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST CO CHICAGO THE PRIME HAS BEEN UNCHANGED SINCE JULY 1992 AND LAST ROSE IN MARCH 1989 BECAUSE BANKS USE THE PRIME TO SET RATES FOR SMALLBUSINESS LOANS CREDIT CARDS AND HOMEEQUITY LOANS THE MOVE WILL CERTAINLY BOOST INTEREST COSTS FOR A BROAD ARRAY OF BORROWERS BUT ANALYSTS SAID THAT BECAUSE THE INCREASE IS SMALL THE OVERALL IMPACT ON THE ECONOMY WILL BE MODERATE THIS IS INFLATION TO THE CONSUMER BECAUSE IT COSTS MORE TO BUY THINGS SAID SUSAN STERNE PRESIDENT OF ECONOMIC ANALYSIS ASSOCIATES IN STOWE VT BUT THE IMPACT IS PROBABLY MORE PSYCHOLOGICAL BECAUSE CONSUMERS BECOME WORRIED WHEN THEY SEE INTEREST RATES HEADING HIGHER CONSUMER BORROWING HAS PICKED UP SHARPLY IN THE PAST 12 MONTHS REFLECTING LOWER RATES AND THE IMPROVING ECONOMY STUART FELDSTEIN PRESIDENT OF SMR RESEARCH CORP A BUDD LAKE NJ RESEARCH AND CONSULTING FIRM FIGURES THAT RATES ON ABOUT ONE QUARTER OF ALL OUTSTANDING CONSUMER DEBT WILL RISE ONCE ALL BANKS INCREASE THEIR PRIME HE ESTIMATES THAT DEBT SERVICE ACCOUNTS FOR 17 OF THE TOTAL COST OF LIVING FOR SMALL BUSINESSES I THINK THE IMPACT WILL BE VERY LIMITED SAID LYNN REASER CHIEF ECONOMIST AT FIRST INTERSTATE BANCORP IN LOS ANGELES SHE SAYS THAT WHILE BORROWING COSTS ARE EDGING UP FOR BUSINESSES BANKS ARE MUCH MORE WILLING TO MAKE LOANS THAN A YEAR AGO BECAUSE OF COMPETITION WITHIN THE BANKING INDUSTRY COMPANIES ARE RECEIVING LOOSER TERMS AND CONDITIONS FOR BORROWING ALTHOUGH THE PRIME RATE IS CERTAINLY ONE OF THE MORE VISIBLE INTEREST RATES ITS INFLUENCE ON THE ECONOMY IS LESS THAN THAT OF MORTGAGE RATES AND US TREASURY RATES BOTH OF WHICH HAVE BEEN RISING SINCE EARLY FEBRUARY MORTGAGE RATES HAVE JUMPED 075 OF A PERCENTAGE POINT AND OTHER SHORTTERM RATES HAVE RISEN HALF A PERCENTAGE POINT MS REASER SAID INCREASING RATES WILL DAMP ECONOMIC GROWTH SOMEWHAT BUT NOT ENOUGH TO DERAIL THE EXPANSION THE FED DECIDED EARLIER THIS WEEK TO INCREASE THE BENCHMARK FEDERALFUNDS RATE BY A QUARTER POINT TO 3 1/2 HOPING TO HEAD OFF INFLATIONARY PRESSURES AS THE ECONOMY STRENGTHENS THE BOOST IN THAT RATE WHICH IS WHAT BANKS CHARGE ONE ANOTHER FOR OVERNIGHT LOANS PUSHED UP THE BANKS' OWN COST OF FUNDS WHEN THE FED MADE A SIMILAR INCREASE IN THE FEDFUNDS RATE ON FEB 4 THE BANKS HELD OFF ON BOOSTING THE PRIME THAT WAS PARTLY BECAUSE OF COMPETITIVE PRESSURES BUT ALSO BECAUSE THE BANKS' PROFIT MARGINS WERE WIDE ENOUGH FOR THEM TO ABSORB THE RISE THE LATEST FED TIGHTENING HOWEVER APPARENTLY WAS TOO MUCH FOR SOME BANKS TO SHOULDER WITHOUT PASSING ALONG AT LEAST SOME OF THE COST TO BORROWERS IN RAISING THE PRIME A QUARTER OF A POINT THE BANKS ARE ESSENTIALLY COMPROMISING BETWEEN A HALFPOINT INCREASE WHICH SOME ANALYSTS HAD EXPECTED AND NONE AT ALL THE FED HAS TAKEN TWO QUARTERPOINT STEPS UP ON THE FEDFUNDS RATE AND THAT GAP IS JUST TOO LARGE NOT TO INCREASE THE PRIME JOHN A RUSSELL A SPOKESMAN FOR BANC ONE CORP SAID EVEN AT 625 THE PRIME RATE IS STILL HIGH RELATIVE TO SHORTTERM INTEREST RATES FROM 1989 TO 1992 INTEREST RATES IN THE US PLUNGED BUT BANKS NEVER CUT THE PRIME RATE AS MUCH AS THE FED REDUCED SHORTTERM RATES THAT HELPED BANKS FATTEN THEIR COFFERS AT A TIME WHEN THE INDUSTRY'S EARNINGS WERE HURT BY A RISE IN PROBLEM LOANS THE FED'S TIGHTENING OF CREDIT DOES HAVE SOME GOOD NEWS FOR CONSUMERS YIELDS ON SIXMONTH CERTIFICATES OF DEPOSIT WHICH ARE TIED TO THE FEDERALFUNDS RATE HAVE BEEN UNDER 3 FOR THE PAST YEAR AND A HALF AND HAVE ALREADY STARTED CLIMBING 9403240020 940301 ENTERPRISE FINANCING SMALL BUSINESS A CAPITAL IDEA ENTREPRENEUR SETS UP ONLINE DATABASE BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL BUSINESS OWNERS CAN SOON GO ONLINE IN THEIR SEARCH FOR CAPITAL NEXT MONTH NEW JERSEY ENTREPRENEUR MABEN SMITH INTENDS TO START AN ELECTRONIC HIGHWAY THAT WILL LINK SMALLBUSINESS OWNERS WITH POTENTIAL INVESTORS THE COMPUTER DATABASE AN APPARENT FIRST WILL LIST INDIVIDUAL AND CORPORATE INVESTORS AND THEIR AREAS OF INTEREST IT ALSO WILL LIST CAPITAL SEEKERS THE AMOUNT THEY NEED AND THEIR BUSINESS AND FINANCIAL TRACK RECORDS CAPITAL SOURCES CAN GET INCLUDED FOR FREE BUT CAPITAL SEEKERS MUST PAY 15 A MONTH FOR A LISTING THE IDEA IS TO SAVE BOTH INVESTORS AND BUSINESS OWNERS TIME AND MONEY SAYS MR SMITH PRESIDENT OF BUSINESS OPPORTUNITIES ONLINE INC AN ATLANTIC HIGHLANDS NJ STARTUP THAT IS COMPILING THE DATABASE THE DATABASE ALSO WILL LIST SMALL BUSINESSES FOR SALE AS WELL AS FRANCHISE OPPORTUNITIES THE DATABASE GREW OUT OF MY SEARCH FOR BUSINESSES TO INVEST IN OR BUY SAYS MR SMITH WHO PREVIOUSLY STARTED AND SOLD TWO OTHER TINY BUSINESSES IN CANADA AND MEXICO I FOUND IT EXTREMELY DIFFICULT TO OBTAIN QUALITY INFORMATION ON BUSINESSES THAT NEED MONEY AND BUSINESSES THAT ARE FOR SALE THE MATERIAL OUT THERE WAS APPALLING HE RECALLS AT FIRST THE FRUSTRATED ENTREPRENEUR CONSIDERED COMPILING HIS OWN PRINTED LIST BUT HE QUICKLY SAW A BUSINESS OPPORTUNITY IN PROVIDING SUCH INFORMATION ONLINE HE SAYS HE ALREADY HAS PUT ABOUT 7000 NAMES INTO THE DATABASE MATCHING INVESTORS WITH POTENTIAL INVESTMENTS HAS ALWAYS BEEN AN IMPERFECT TASK AT BEST AND THE NEW SERVICE WON'T REPLACE THE PROTRACTED DISCUSSIONS INVOLVED IN ANY FINANCING BUT THE SERVICE SHOULD HELP BOTH INVESTORS AND BUSINESS OWNERS NARROW THEIR SEARCH AND MAKE FINANCING EFFORTS MORE EFFICIENT MR SMITH SUGGESTS A DOGOODER TURNS INTO AN ENVIRONMENTAL VENTURE CAPITALIST SINCE THE MID1970S THE JESSIE SMITH NOYES FOUNDATION IN NEW YORK HAS FOCUSED ON THE ENVIRONMENT AND SOCIAL JUSTICE BY PROVIDING MORE THAN 3 MILLION A YEAR IN GRANTS MAINLY TO NONPROFIT GROUPS NOW IT HAS CREATED A VENTURECAPITAL PROGRAM TO DIRECTLY INVEST IN STARTUP COMPANIES THAT SHARE ITS MISSION THE MOVE GREW OUT OF THE BELIEF THAT SOME OF THE FOUNDATION'S 60 MILLION IN ASSETS ALSO COULD BE USED TO SUPPORT ITS GRANT MAKING THROUGH THE MARKETPLACE SAYS STEPHEN VIEDERMAN THE GROUP'S PRESIDENT SO IT DECIDED TO ALLOCATE AS MUCH AS 6 MILLION FOR VENTURECAPITAL INVESTMENTS THE FOUNDATION HAS MADE FOUR INVESTMENTS DURING THE PAST YEAR AMONG THEM 208000 IN LYME TIMBER CO A LYME NH CONCERN THAT IS INVESTING IN CONSERVATIONORIENTED REALESTATE DEALS AND 43000 IN NATURAL CHEMISTRY INC A NEW CANAAN CONN COMPANY THAT IS MARKETING ENZYMEBASED PRODUCTS FOR SPAS AND SWIMMING POOLS WE ARE TRYING TO REDUCE THE DISSONANCE BETWEEN INVESTMENT MANAGEMENT AND OUR MISSION EXPLAINS WOODY TASCH A VETERAN VENTURE CAPITALIST IN CHARGE OF THE FOUNDATION'S INVESTMENT PROGRAM THROUGH THE INVESTMENT PROCESS WE ARE ENCOURAGING ENTREPRENEURIAL COMPANIES TO CONSIDER THE SOCIAL AND ENVIRONMENTAL IMPACT THEIR BUSINESSES HAVE HE ADDS HEAVENLY HELP WOMEN BUSINESS OWNERS AID EACH OTHER THROUGH ANGELS THE NATIONAL ASSOCIATION OF WOMEN BUSINESS OWNERS THIS WEEK WILL ANNOUNCE THE FORMATION OF AN ANGELS' NETWORK TO CONNECT ESTABLISHED WOMEN BUSINESS OWNERS WITH THOSE NEEDING CAPITAL AND MENTORING HELP THE NETWORK WILL ATTEMPT TO REMEDY THE DISCRIMINATION FACED BY MANY WOMEN BUSINESS OWNERS WHEN THEY SEEK FINANCING SAYS SANDRA ADAMS CHAIRWOMAN OF FINANCIAL SERVICES FOR THE 5000MEMBER ASSOCIATION WE'RE STILL BEING ASKED BY LENDERS IF WE HAVE A HUSBAND OR IF THERE'S SOMEONE ELSE IN THE BUSINESS WITH US SAYS MS ADAMS WHO RUNS A SMALL COMPUTERCONSULTING BUSINESS IN MIAMI THE ANGELS PRIMARILY WILL CONSIST OF WOMEN WHO HAVE OWNED A BUSINESS FOR AT LEAST EIGHT YEARS AND HAVE ACCUMULATED ASSETS THAT THEY NOW WANT TO MAKE AVAILABLE TO OTHER FEMALE ENTREPRENEURS MS ADAMS CONTINUES IN PARTICULAR SHE POINTS OUT ANGELS WANT TO FINANCE EXISTING BUSINESSES THAT REQUIRE CAPITAL TO GROW AND EXPAND BORROWERS ARE EXPECTED TO CONSIST MOSTLY OF BUSINESSES WHOSE FINANCING NEEDS ARE TOO SMALL FOR TRADITIONAL VENTURE CAPITALISTS OR CONVENTIONAL LENDERS FOR EXAMPLE LOANS WILL BE STRUCTURED IN SUCH A WAY THAT BORROWERS WON'T HAVE TO START PAYING OFF THE PRINCIPAL FOR AT LEAST TWO YEARS OR SO FOR THE IMMEDIATE FUTURE THE NETWORK WILL LIMIT ITS ASSISTANCE TO BUSINESSES WHOSE OWNERS ALREADY BELONG TO THE ASSOCIATION BUT ONCE THE NETWORK GETS WELL ESTABLISHED IT MAY GO NATIONWIDE THE ASSOCIATION SAYS AS THE ECONOMY REVIVES MORE FIRMS USE PURCHASEORDER FINANCING SMALL BUSINESSES WITH SCARCE ASSETS AS COLLATERAL OR WITH STILL WEAK BALANCE SHEETS RECEIVE LITTLE HELP FROM CONVENTIONAL LENDERS EXPLAINS ANTHONY BROWN A MANAGING DIRECTOR OF MTB BANK IN NEW YORK THE PROBLEM IS EXACERBATED AMONG FIRMS THAT DEAL HEAVILY IN IMPORTS AND EXPORTS THE ONLY WAY MANY OF THESE ENTERPRISES CAN FINANCE NEW BUSINESS IS BY USING THEIR PURCHASE ORDERS AS COLLATERAL AT MTB BANK SUCH LOANS HAVE DOUBLED OVER THE PAST SIX MONTHS BRISTOL TRADE FINANCE INC IN DALLAS SAYS THAT PURCHASEORDER FINANCING DEALS ROSE 30 DURING THE FIRST TWO MONTHS OF 1994 COMPARED WITH THE FIRST QUARTER OF 1993 WHEN JSG NY INC A SMALL BUT RAPIDLY GROWING APPAREL MAKER NEEDED MONEY TO PAY FOR SOME LARGE ORDERS IT MANUFACTURES ABROAD IT GOT THE CAPITAL THROUGH PURCHASEORDER FINANCING SAYS SANFORD GLAZMAN CHIEF EXECUTIVE OFFICER OF THE BOSTON CONCERN DURING THE PAST MONTH ALONE MTB HAS PROVIDED JSG WITH MORE THAN 500000 IN SUCH FINANCING MONEY THAT CONVENTIONAL BANKS WOULDN'T PROVIDE MR GLAZMAN NOTES THESE DEALS ARE TOO RISKY AND TOO SMALL FOR MOST BANKERS SAYS FRED WALDKOETTER A PRINCIPAL WITH BRISTOL BUT THEY ALSO AREN'T CHEAP A BANK TYPICALLY CHARGES FROM 15 TO 2 OF A BORROWER'S MONTHLY CREDIT LINE AS AN UPFRONT FEE IN ADDITION A BORROWER PAYS INTEREST ON THE CREDIT USED AT A RATE THAT CURRENTLY EQUALS TWO PERCENTAGE POINTS ABOVE THE PRIME RATE OF 6 THUS FEES AND INTEREST ON A 150000 LINE OF CREDIT FOR FOUR MONTHS COULD WELL ADD UP TO NEARLY 11 OF THE TOTAL YOU GET MORE THAN JUST MONEY CONTENDS MR GLAZMAN OF JSG YOU'RE ALSO GETTING SOMEONE WHO IS MORE FAMILIAR WITH THE NUANCES OF INTERNATIONAL TRADE THAN A SMALL BUSINESS AMERICAN VENTURE CAPITAL EXCHANGE PORTLAND ORE SAYS THAT IT HAS OPERATED SINCE APRIL 1993 AN ONLINE COMPUTER NETWORK LINKING POTENTIAL INVESTORS WITH BUSINESSES A FINANCING SMALL BUSINESS COLUMN IN THE MARCH 1 EDITION SAID ANOTHER NETWORK STARTING OPERATIONS IN APRIL WAS AN APPARENT FIRST IN THE FIELD 9403240019 940324 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT AMERICAN TELEPHONE & TELEGRAPH CO 400 MILLION OF NOTES DUE APRIL 1 2004 PRICED AS 675S AT 99265 TO YIELD 6853 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 44 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC BANKAMERICA CORP 300 MILLION OF SUBORDINATED NOTES DUE APRIL 15 2006 PRICED AS 72S AT 99592 TO YIELD 7251 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 82 BASIS POINTS ABOVE 10YEAR TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL FARM CREDIT BANKS 27 BILLION OF CONSOLIDATED SYSTEMWIDE BONDS PRICED THROUGH FEDERAL FARM CREDIT BANKS FUNDING CORP ISSUES PRICED INCLUDE 119 BILLION OF BONDS DUE JULY 1 PRICED AT 365 A SPREAD OF 11 BASIS POINTS ABOVE COMPARABLE TREASURYS 730 MILLION OF BONDS DUE OCT 3 PRICED AT 4 A SPREAD OF 10 BASIS POINTS ABOVE COMPARABLE TREASURYS AND 780 MILLION OF BONDS DUE APRIL 3 1995 PRICED AT 443 A SPREAD OF 14 BASIS POINTS ABOVE COMPARABLE TREASURYS CAREER HORIZONS INC INITIAL OFFERING OF THREE MILLION COMMON SHARES PRICED AT 1750 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO AND ROBERT W BAIRD & CO CONSUMERS POWER CO 200 MILLION OF CUMULATIVE PERPETUAL PREFERRED STOCK PRICED WITH A 832 DIVIDEND YIELD THE EIGHT MILLION SHARES WERE PRICED AT 25 EACH ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS AND IS RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CONSUMERS POWER IS A UNIT OF CMS ENERGY CORP DAKOTAH INC INITIAL PUBLIC OFFERING OF ONE MILLION SHARES PRICED AT 5125 EACH ACCORDING TO THE COMPANY UNDERWRITERS INCLUDE KENNEDY MATHEWS LANDIS HEALY & PECORA INC INTEGRATED MICRO PRODUCTS PLC INITIAL OFFERING OF 18 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY SG WARBURG & CO AND VOLPE WELTY & CO EACH ADR REPRESENTS ONE ORDINARY SHARE SUPER VISION INTERNATIONAL INC INITIAL OFFERING OF 12 MILLION UNITS PRICED AT 5 EACH THROUGH UNDERWRITERS LED BY DH BLAIR INVESTMENT BANKING CORP EACH UNIT CONSISTS OF ONE CLASS A COMMON SHARE ONE CLASS A WARRANT AND ONE CLASS B WARRANT EACH CLASS A WARRANT IS REDEEMABLE FOR ONE CLASS A COMMON SHARE AND ONE CLASS B WARRANT AT 750 THOURGH MARCH 21 1999 EACH CLASS B WARRANT IS REDEEMABLE FOR ONE CLASS A COMMON SHARE AT 1050 THROUGH MARCH 21 1999 HIGHLANDER INCOME FUND INC INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY PIPER JAFFRAY INC ANAHEIM CALIF 95 MILLION OF 1994 TAXABLE NOTES WON BY PAINEWEBBER INC THE NOTES HAVE A 5 COUPON AND ARE PRICED TO YIELD 468 IN APRIL 1995 MOODY'S HAS RATED THE ISSUE MIG1 AND S&P HAS ASSIGNED AN SP1PLUS RATING CALIFORNIA PUBLIC WORKS BOARD 84 MILLION OF 1994 SERIES A LEASEREVENUE BONDS PRICED BY A BEAR STEARNS & CO INC GROUP YIELDS RANGE FROM 425 IN 1996 TO 615 IN 2014 THE BONDS ARE RATED A CONDITIONAL SINGLEA1 BY MOODY'S AND A PROVISIONAL SINGLEA BY S&P PHOENIX 706 MILLION OF SERIES 1994 VARIOUSPURPOSE GENERALOBLIGATION BONDS WON BY A PRUDENTIAL SECURITIES INC GROUP YIELDS RANGE FROM 39 IN 1996 TO 56 IN 2010 AND 2011 THE BONDS HAVE BEEN RATED DOUBLEA BY MOODY'S AND DOUBLEAPLUS BY S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 199472 IS BACKED BY THE AGENCY'S 30YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 66 AND WEIGHTED AVERAGE MATURITY OF 355 MONTHS BENEFICIAL CALIFORNIA INC 7575 MILLION OF HOMEEQUITYLOAN ASSETBACKED CERTIFICATES PRICED IN TWO PARTS BY UNDERWRITERS LED BY MERRILL LYNCH & CO THE ISSUER IS A UNIT OF BENEFICIAL CORP OF WILMINGTON DEL THE 6571 MILLION OF SENIOR CLASS A1 CERTIFICATES WAS PRICED AT PAR WITH A COUPON THAT FLOATS 24 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 244 YEARS AT A CONDITIONAL PREPAYMENT RATE OF 25 THE CERTIFICATES WERE RATED TRIPLEA BY MOODY'S AND S&P THE 1004 MILLION OF SUBORDINATE CLASS B CERTIFICATES WAS PRICED AT PAR AND HAVE A COUPON THAT FLOATS 60 BASIS POINTS ABOVE ONEMONTH LIBOR THE CERTIFICATES HAVE AN AVERAGE LIFE OF 282 YEARS AT 25 CONDITIONAL PREPAYMENT RATE THEY WERE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE SUBORDINATE CLASS IS SUPPORTED BY A 15 RESERVE FUND USAA FEDERAL SAVINGS BANK 3105 MILLION OF AUTOLOAN ASSETBACKED CERTIFICATES PRICED AS 5S AT 99859375 TO YIELD 5165 ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES HAVE AN AVERAGE LIFE OF 134 YEARS AND ARE RATED TRIPLEA BY MOODY'S AND S&P THEY WERE SOLD THROUGH USAA AUTO LOAN GRANTOR TRUST 19941 A SPECIALPURPOSE VEHICLE THE CERTIFICATES ARE SUPPORTED BY A 5 CASH COLLATERAL ACCOUNT THE COLLATERAL CONSISTS OF AUTO AND LIGHTTRUCK INSTALLMENT LOANS ALCATELALSTHOM SA FRANCE FIVE BILLION FRENCH FRANCS OF 25 CONVERTIBLE BONDS DUE JAN 1 2004 AT ISSUE PRICE 800 FRANCS VIA SOCIETE GENERALE ISSUE SPLIT INTO 15 OFFERED TO RETAIL FRENCH INVESTORS AND 85 OFFERED INTERNATIONALLY EACH BOND CONVERTIBLE FROM APRIL 8 TO MATURITY INTO ONE ALCATEL ORDINARY SHARE AT 1127 PREMIUM OVER YESTERDAY'S OPENING SHARE PRICE OF 719 FRANCS BONDS REDEEMABLE AT MATURITY AT 1098 FRANCS 3725 ABOVE NOMINAL VALUE YIELD TO MATURITY 55 BONDS CALLABLE FROM JAN 1 1998 AT PRICE EQUIVALENT TO 55 YIELD TO MATURITY FEES 26 ASFINAG AUSTRIA 100 MILLION SWISS FRANCS OF 45 PRIVATELY PLACED NOTES DUE MAY 10 1999 PRICED AT 102125 VIA SWISS BANK CORP FEES 15 CREDIT LOCAL DE FRANCE FRENCH AGENCY 150 MILLION ECUS OF 625 EUROBONDS DUE APRIL 13 2001 AT ISSUE PRICE 100695 VIA CREDIT LYONNAIS REOFFERED AT 9912 TO YIELD 641 FEES 1875 DEUTSCHE BANK FINANCE NV CURACAO GERMAN PARENT 500 BILLION ITALIAN LIRE OF ZEROCOUPON EUROBONDS DUE MAY 6 2004 AT ISSUE PRICE 4315 VIA DEUTSCHE BANK AG LONDON REOFFERED AT 4215 TO YIELD 9024 AT MATURITY GUARANTOR DEUTSCHE BANK AG FEES 125 RABOBANK NEDERLAND NETHERLANDS 150 MILLION CANADIAN DOLLARS OF 7125 EUROBONDS DUE DEC 29 1999 AT ISSUE PRICE 100833 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 99233 TO YIELD 7307 A SPREAD OF 30 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND OF MARCH 1999 FEES 1875 9403240018 940317 LAURENCE TRIBE'S FEES MAY WORK AGAINST HIM BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL LAURENCE H TRIBE HAS BEEN DISCUSSED AS A POTENTIAL SUPREME COURT NOMINEE FOR MORE THAN A DECADE WHEN REPUBLICANS OCCUPIED THE WHITE HOUSE HIS LIBERAL REPUTATION DISQUALIFIED HIM NOW IRONICALLY HIS PREEMINENCE AS A LEGAL ENTREPRENEUR AND HIS HIGH FEES THREATEN TO UNDERMINE HIS REPUTATION MR TRIBE A PROFESSOR AT HARVARD LAW SCHOOL IS FACING A FEE CHALLENGE THAT RAISES ETHICAL QUESTIONS ABOUT HIS BILLS WHICH CAN RUN TO SEVERAL MILLION DOLLARS FOR HANDLING AN APPELLATE CASE RALPH VENUTO A CLIENT WHO RAN A STRING OF QUICKLUBE SHOPS IN NEW JERSEY IS SEEKING A REDUCTION OF MR TRIBE'S 2750000 FEE I'M SORRY I EVER LEARNED HIS NAME MR VENUTO SAYS MR TRIBE IS CONSIDERED BY MANY TO BE TOO LIBERAL TO BE APPOINTED TO THE SUPREME COURT EVEN BY PRESIDENT CLINTON BUT THE CONTROVERSY OVER HIS FEES MAKES THE POSSIBILITY EVEN MORE REMOTE MR TRIBE'S BILL TO MR VENUTO PUSHES THINGS RIGHT TO AND MAYBE PAST THE POINT OF UNCONSCIONABLE SAYS CHARLES WOLFRAM A LAW PROFESSOR AT CORNELL UNIVERSITY LAW SCHOOL SAYS REX E LEE A FORMER US SOLICITOR GENERAL WHO WILL ARGUE HIS 59TH CASE BEFORE THE SUPREME COURT NEXT WEEK IF LARRY GETS NOMINATED THERE WILL BE ENORMOUS OPPOSITION AND THOSE OPPOSED TO HIM WILL LOOK FOR ANY POSSIBLE ARGUMENT THEY CAN FIND AND THESE KINDS OF FEES WILL CERTAINLY BE AMONG THEM JOHN THORNE ASSOCIATE GENERAL COUNSEL FOR BELL ATLANTIC CORP WHICH MR TRIBE REPRESENTS SAYS MR TRIBE'S 750ANHOUR FEE IS MORE THAN I WOULD BILL IF I WERE IN PRIVATE PRACTICE MOST TOP LAWYERS FOR COMPANIES AND WEALTHY CLIENTS BILL AT ABOUT 400 AN HOUR BUT MR THORNE ADDS THAT MR TRIBE IS THE MODERNDAY DANIEL WEBSTER THERE'S NOBODY BETTER ON HIS FEET IN ARGUMENTS BEFORE THE US SUPREME COURT MR TRIBE'S WINLOSS RECORD IS 166 AMONG THE BEST IN THE BUSINESS MR TRIBE SAYS THAT FOR EACH CASE THAT PAYS HIM HANDSOMELY THERE ARE AS MANY THAT DON'T PAY AT ALL THE 52YEAROLD PROFESSOR SAYS THAT HIS PAYING CLIENTS IN EVERY CASE EXCEPT FOR RALPH VENUTO SEEM PLEASED WITH WHAT THEY'RE GETTING MR TRIBE IS GENERALLY REGARDED AS ONE OF THE BEST LAWYERS IN THE COUNTRY HE BEGAN TEACHING AT HARVARD IN 1968 AND A DECADE LATER PUBLISHED A TREATISE ON CONSTITUTIONAL LAW THAT IS WIDELY READ BY LAW STUDENTS AND FREQUENTLY CITED IN COURT OPINIONS HIS EARLY COURTROOM WORK WAS CAUSE ORIENTED AND HE DID MUCH OF IT PRO BONO HE TOOK ON ABORTION SODOMY AND THE RIGHT OF HARE KRISHNAS TO SOLICIT DONATIONS AT A STATE FAIR AS THE 1980S PROGRESSED MR TRIBE'S CORPORATE WORK GREW AND HIS FEES BALLOONED HIS STUNNING 1987 SUPREME COURT VICTORY ON BEHALF OF PENNZOIL CO IN ITS 11 BILLION FIGHT WITH TEXACO INC WON HIM ABOUT 4 MILLION IN FEES MAKING HIM THE TOP CHOICE OF COMPANIES LOOKING FOR AN APPELLATE LAWYER BUT MR TRIBE'S ILLUSTRIOUS CAREER MATTERS NOT AT ALL TO MR VENUTO OR TO STEVEN M KRAMER FORMERLY MR VENUTO'S ATTORNEY EACH HAS A LEGAL COMPLAINT ABOUT MR TRIBE'S FEES AND HIS PERFORMANCE MR KRAMER REPRESENTED LIGHTNING LUBE INC MR VENUTO'S COMPANY IN A 1992 CIVIL TRIAL AGAINST WITCO CORP ALLEGING THAT WITCO A COMPETITOR AND A SUPPLIER SPREAD MALICIOUS RUMORS AMONG LIGHTNING LUBE FRANCHISES THAT CAUSED THE COMPANY'S DEMISE A JURY AWARDED LIGHTNING LUBE 115 MILLION IN ACTUAL DAMAGES AND 50 MILLION IN PUNITIVE DAMAGES BUT THE FEDERAL JUDGE PRESIDING OVER THE CAMDEN NJ TRIAL THREW OUT THE PUNITIVEDAMAGE AWARD MR KRAMER SAYS HE AND MR VENUTO RETAINED MR TRIBE TO HANDLE THE APPEAL MR TRIBE AND HIS ASSOCIATE JONATHAN MASSEY FAILED TO GET THE LOWERCOURT DECISION OVERTURNED MR KRAMER IS SUING MR TRIBE IN CAMDEN FEDERAL COURT FOR BREACH OF CONTRACT FRAUD AND SLANDER AMONG OTHER CHARGES AND IS SEEKING DAMAGES OF MORE THAN 5 MILLION MR KRAMER SAYS MR TRIBE NEVER MASTERED THE RECORD AND OVERLOOKED A TECHNICALITY THAT COULD COST LIGHTNING LUBE 630000 MR TRIBE SAYS MR KRAMER'S LAWSUIT IS FRIVOLOUS HE NOTES THAT MR VENUTO FIRED MR KRAMER OVER A FEE DISPUTE AND THAT AS A PART OF THAT SETTLEMENT MR KRAMER STANDS TO GAIN 25 OF THE AMOUNT BY WHICH MR TRIBE'S FEES GET REDUCED MR TRIBE SAYS HE DID A FINE JOB FOR MR VENUTO HOW HARD I WORKED ISN'T THE ISSUE HE SAYS THERE WAS AN AGREEMENT THAT KEYED THE FEES TO A PRODUCT MR TRIBE SAYS HE TOOK THE CASE BECAUSE AT THE TIME HE WAS INTERESTED IN PUNITIVEDAMAGES ISSUES MOREOVER HE SAYS I TEND TO BE SYMPATHETIC WITH LITTLE COMPANIES WHO GET CRUSHED BY BIG GOLIATHS MR TRIBE'S ELABORATE 14PAGE FEE CONTRACT WITH LIGHTNING LUBE INC IS CONTAINED IN THE COURT RECORDS IN IT MR TRIBE LAYS OUT A 15STAGE FEE PLAN HAD MR TRIBE WON THE CASE IN THE US SUPREME COURT HE AND HIS TWO ASSOCIATES WOULD HAVE COLLECTED 65 MILLION LAST WEEK IN A SEPARATE FILING MR VENUTO CHALLENGED THE 2750000 IN LEGAL FEES IN A REQUEST TO THE NEW JERSEY SUPREME COURT'S ARBITRATION COMMITTEE HE WROTE I FEEL THE FEE ASSERTED BY MR TRIBE IS UNCONSCIONABLE BASED ON THE AMOUNT OF WORK INVOLVED AND THE RESULT OBTAINED MR VENUTO PAID MR TRIBE A 50000 RETAINER AT THE OUTSET AND PUT 2750000 INTO AN ESCROW ACCOUNT MR VENUTO SAYS THAT AT THE LAST MINUTE MR TRIBE ASKED PERMISSION TO SHARE THE APPEALSCOURT ARGUMENT WITH HIS ASSOCIATE MR MASSEY A FORMER STUDENT WHO CONFIRMS THAT HE HAD NEVER BEFORE ARGUED AN APPEAL MR TRIBE WON'T COMMENT ON THE ARBITRATION REQUEST WHETHER MR TRIBE WILL GET HIS LIGHTNING LUBE FEE WILL ULTIMATELY BE DECIDED IN ARBITRATION SOMETIME THIS YEAR THE AMERICAN BAR ASSOCIATION'S RULES OF PROFESSIONAL CONDUCT SET NO MAXIMUM FOR LEGAL FEES SAYING ONLY THAT A LAWYER'S FEE SHALL BE REASONABLE MR WOLFRAM OF CORNELL RECALLS THAT IN 1975 ANTITRUST LAWYER MOSES LASKY CHARGED TELEX CORP A SHOCKING 1 MILLION FOR FILING A PETITION TO HAVE THE COMPANY'S CASE AGAINST INTERNATIONAL BUSINESS MACHINES CORP HEARD BEFORE THE SUPREME COURT BUT MR LASKY'S APPEARANCE IN THAT CASE IS CREDITED WITH FORCING IBM TO INITIATE SETTLEMENT TALKS TRIBE GETS 1 MILLION IN A MONTH MR WOLFRAM SAYS AND HIS INVOLVEMENT IN LIGHTNING LUBE DIDN'T PUSH ANYONE TO SETTLE WHILE MR TRIBE SAYS THIS IS HIS FIRST FEE CHALLENGE BY A CLIENT INTERVIEWS WITH OTHER LAWYERS AND CLIENTS SUGGEST THAT MR TRIBE HAS AGGRESSIVE BILLING PRACTICES IN ONE CASE MR TRIBE ACKNOWLEDGES THAT HE SAID HE WOULD QUIT UNLESS HE GOT MORE MONEY ACCORDING TO LETTERS PROVIDED TO THIS NEWSPAPER MR TRIBE WAS RETAINED IN MAY 1991 TO REPRESENT ELLIOT FINEMAN A NEW JERSEY BUSINESSMAN WHO HAD JUST WON A 239 MILLION VERDICT FROM ARMSTRONG WORLD INDUSTRIES INC A LANCASTER PA MAKER OF FLOOR COVERINGS THAT 11STAGE FEE AGREEMENT CALLED FOR MR TRIBE TO EARN FEES RANGING FROM A MINIMUM OF 125 TO A MAXIMUM OF 10 OF ANY DAMAGES PAID BY ARMSTRONG DEPENDING ON HOW FAR HE COULD TAKE THE CASE SOON AFTER THE FEE AGREEMENT WAS SIGNED HOWEVER THE TRIAL JUDGE THREW OUT THE AWARD AND ORDERED A NEW TRIAL MR TRIBE DEMANDED MORE MONEY GUARANTEEING HIM BETWEEN 7 AND 14 OF THE MONEY ARMSTRONG MIGHT EVENTUALLY PAY MR TRIBE SAYS HE ASKED FOR MORE MONEY BECAUSE THE CASE BECAME RISKIER AFTER THE VERDICT WAS REJECTED AND HE DIDN'T FEEL OBLIGED TO REMAIN INVOLVED MR FINEMAN SAYS HE AGREED BECAUSE OF THE CHANGED CIRCUMSTANCES AND SAYS HE IS PLEASED WITH MR TRIBE WHO STILL REPRESENTS HIM THE CASE IS SCHEDULED TO BE RETRIED IN FEDERAL COURT IN NEWARK NEXT MONTH AND MR TRIBE PLANS TO HANDLE POSSIBLE APPEALS MR TRIBE'S BILLS HAVE RAISED EYEBROWS AS FAR BACK AS 1983 IN THE CASE OF GRENDEL'S DEN A RESTAURANT NEAR HARVARD THAT CHALLENGED A STATE LAW ALLOWING CHURCHES TO VETO LIQUOR LICENSES OF NEARBY EATERIES AFTER MR TRIBE WON THE CASE IN THE SUPREME COURT HE BILLED THE STATE OF MASSACHUSETTS 264000 UNDER A FEDERAL ACT THAT ALLOWS PLAINTIFFS LAWYERS TO BILL STATES FOR UNCONSTITUTIONAL LAWS WHEN MASSACHUSETTS CHALLENGED THE FEE IT WAS REVEALED THAT ONE OF MR TRIBE'S ASSOCIATES BILLED THE STATE 625 TO WRITE A ONESENTENCE LETTER IT WAS A LONG SENTENCE THE ASSOCIATE WAS QUOTED AS SAYING AT THE TIME EVEN NOW MR TRIBE SAYS THE ALLEGATION OF OVERBILLING IN THAT CASE WAS A CHEAP SHOT HE CONCEDES IT WAS A SHORT LETTER BUT THE ASSOCIATE DID SPEND A DAY THINKING ABOUT IT EVENTUALLY AN APPEALS COURT AWARDED MR TRIBE ABOUT HALF THE AMOUNT HE HAD SOUGHT ALL MR TRIBE'S LEGAL FEES SUPPLEMENT THE 140000 ANNUAL SALARY HE GETS FOR TEACHING A FULL COURSE LOAD AT HARVARD LAW SCHOOL HARVARD PERMITS ITS LAW PROFESSORS TO SPEND 20 OF THEIR TIME ON PRIVATE MATTERS AND MR TRIBE SAYS HE FINDS TIME FOR HIS PRIVATE LAW PRACTICE BY SLEEPING ONLY FIVE HOURS A NIGHT AND WORKING WEEKENDS IF MR TRIBE IS NOMINATED AND CONFIRMED FOR A SUPREME COURT POST ONE THING IS CERTAIN SAYS MR LEE THE FORMER SOLICITOR GENERAL HE'D HAVE TO TAKE A CUT IN PAY FLIGHT ATTENDANTS WHO SAY THEY WERE FORCED TO BREATHE SECONDHAND SMOKE CAN PURSUE A CLASSACTION LAWSUIT AGAINST THE TOBACCO INDUSTRY A FLORIDA APPEALS COURT SAID THE PROPOSED CLASS CONSISTS OF 60000 CURRENT AND FORMER FLIGHT ATTENDANTS WHO DO NOT SMOKE BUT WERE EXPOSED TO PASSENGERS' CIGARETTE FUMES BEFORE CONGRESS BANNED MOST INFLIGHT SMOKING IN 1989 THE LAWSUIT CLAIMS THAT THESE FLIGHT ATTENDANTS HAVE BECOME ILL OR HAVE OTHERWISE BEEN HARMED BY THEIR FORCED EXPOSURE TO SMOKE THE APPEALSCOURT PANEL IN MIAMI REVERSED A TRIALCOURT JUDGE WHO HAD TOLD 30 FLIGHT ATTENDANTS FROM VARIOUS AIRLINES THAT THEY WOULD EACH NEED TO PURSUE SEPARATE LAWSUITS THE APPEALS COURT RULING ON TUESDAY SAID THE FLIGHT ATTENDANTS HAVE SIMILAR CLAIMS AND TOGETHER COULD ADEQUATELY REPRESENT THE LARGER CLASS OF 60000 AS A PRACTICAL MATTER IT'S MONUMENTALLY SIGNIFICANT BECAUSE IF I HAD TO GO INDIVIDUALLY I WOULD HAVE TO GO TO DIFFERENT STATES SAID STANLEY M ROSENBLATT A MIAMI ATTORNEY REPRESENTING ALL THE FLIGHT ATTENDANTS YOU WOULD GET INVOLVED IN VERY COMPLEX STATUTEOFLIMITATIONS AND JURISDICTIONAL ISSUES ALTHOUGH THE COURT DID NOT CERTIFY A CLASS ACTION THAT IS A FORMALITY AT THIS POINT MR ROSENBLATT SAID BUT THE RULING WAS PLAYED DOWN BY TOBACCO COMPANIES WHICH STRESSED THAT THE FLIGHT ATTENDANTS HAVE NOT FORMALLY WON CLASS CERTIFICATION WILLIAM S OHLEMEYER AN ATTORNEY FOR DEFENDANT PHILIP MORRIS COS AT THE KANSAS CITY MO LAW FIRM SHOOK HARDY & BACON SAID ALL THE APPELLATE COURT HAS SAID IS THAT THE CLASSACTION CLAIMS CAN WITHSTAND A MOTION TO DISMISS PHILIP MORRIS AND RJR NABISCO HOLDINGS CORP SAID THE FLIGHT ATTENDANTS STILL HAVE TO PERSUADE THE TRIAL COURT TO ALLOW THEM TO PROCEED AS A CLASS BESIDES NEW YORKBASED PHILIP MORRIS AND RJR NABISCO THE DEFENDANTS ARE LOEWS CORP NEW YORK AMERICAN BRANDS INC OLD GREENWICH CONN BROOKE GROUP LTD MIAMI AND DOSAL TOBACCO CORP A SMALL MIAMI COMPANY A LOEWS REPRESENTATIVE WAS UNAVAILABLE FOR COMMENT ON THE RULING THE OTHER COMPANIES HAD NO COMMENT LAWSUITS OVER SECONDHAND SMOKE ROSE AFTER THE ENVIRONMENTAL PROTECTION AGENCY IN JANUARY 1993 LINKED THE SMOKE TO LUNG CANCER AND OTHER AILMENTS MOST OF THE RESULTING LITIGATION IS AIMED AT EMPLOYERS THAT ALLOWED SMOKING IN THE WORKPLACE BUT ANOTHER LAWSUIT AGAINST THE TOBACCO INDUSTRY FILED BY A MISSISSIPPI BARBERSHOP OWNER IS SLATED TO GO TO TRIAL IN SEPTEMBER THE US SENATE OVERWHELMINGLY VOTED TO PROHIBIT THE FILING OF LAWSUITS INVOLVING CRASHES OF OLDER LIGHT AIRCRAFT IN WHAT PROPONENTS SAID WAS A BREAKTHROUGH IN THE EFFORT TO CHANGE LIABILITY LAWS AT THE FEDERAL LEVEL THE MEASURE WHICH STILL MUST BE CONSIDERED IN THE HOUSE WOULD BAR SUITS ALLEGING FLAWS IN THE DESIGN OF LIGHT AIRCRAFT THAT ARE 18 YEARS OR OLDER THE GENERAL AVIATION INDUSTRY HAS BEEN LOBBYING FOR SUCH PROTECTION SINCE 1986 SAYING IT HAS BEEN SWAMPED WITH FRIVOLOUS SUITS INVOLVING 30YEAROLD OR 40YEAROLD PLANES YESTERDAY'S 918 VOTE WAS THE FIRST TIME EITHER THE HOUSE OR SENATE HAD EVER FORMALLY CONSIDERED SUCH LEGISLATION CONSUMER GROUPS AND TRIAL LAWYERS DECRIED THE ACTION I FAIL TO SEE HOW THIS IS GOING TO KEEP THE PLANES FROM FALLING OUT OF THE AIR SAID BARRY J NACE PRESIDENT OF THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA MR NACE SAID HE EXPECTS WISER HEADS WILL PREVAIL IN THE HOUSE THE BILL PROVIDES THREE EXCEPTIONS INCLUDING WHERE MANUFACTURERS HAVE PROVIDED FALSE SAFETY INFORMATION ABOUT AN AIRCRAFT TO FEDERAL REGULATORS AND WHERE THE CRASH INVOLVES AN EMERGENCY MEDICAL EVACUATION OR A VICTIM ON THE GROUND THE BILL WAS SPONSORED BY REPUBLICAN SEN NANCY KASSEBAUM OF KANSAS HOME TO THE THREE LARGEST US MANUFACTURERS OF LIGHT AIRCRAFT EXCEPT IN CASES INVOLVING NUCLEAR ACCIDENTS AND CHILDHOOD VACCINES CONGRESS HASN'T ENACTED LEGISLATION GENERALLY AFFECTING RIGHTS TO BRING SUITS INVOLVING DEFECTIVE PRODUCTS OR PERSONAL INJURIES SINCE THE TURN OF THE CENTURY A FEDERAL BILL THAT LIMITS PUNITIVE DAMAGES IN PRODUCT CASES FACES A LIKELY SENATE VOTE THIS SPRING MURDER ACQUITTAL A MAN WHO WAS ACCUSED UNDER A NOVEL LEGAL THEORY OF DESTROYING A WOMAN'S WILL TO LIVE BY RAPING HER WAS ACQUITTED OF MURDER BUT A CALIFORNIA STATECOURT JURY FOUND JOSE ALONSO GARCIA 20 GUILTY OF RAPE AND FIVE COUNTS OF SEXUAL ASSAULT THE ASSOCIATED PRESS REPORTED THE 79YEAROLD RAPE VICTIM DIED A MONTH AFTER THE ATTACK AND MANY CRIMINALLAW SPECIALISTS HAD QUESTIONED WHETHER CASE LAW WOULD SUPPORT A MURDER CHARGE IN SUCH CIRCUMSTANCES ONE JUROR SAID THE JURY CONCLUDED THAT THE WOMAN DIED OF CANCER UNRELATED TO THE RAPE JUNDA WOO IN NEW YORK AND RICHARD B SCHMITT IN WASHINGTON CONTRIBUTED TO THIS ARTICLE A GRAPH PUBLISHED WITH A MARCH 17 ARTICLE ABOUT LAURENCE TRIBE'S LEGAL PRACTICE STATED THAT MR TRIBE WAS GUARANTEED PAYMENT OF 28 MILLION IN FEES IN A FEDERAL COURT CASE IF THE CASE WERE TO BE SETTLED REGARDLESS OF THE DECISION BY THE COURT OF APPEALS MR TRIBE'S FEE AGREEMENT FOR HIS APPELLATE WORK PROVIDED THAT THE FEE WHETHER MORE OR LESS THAN 28 MILLION WAS CONTINGENT ON HIS CLIENT'S WINNING A COURT JUDGMENT OR SETTLEMENT AND WAS SUBJECT TO OTHER LIMITATIONS KEYED TO THE SIZE OF ANY PAYMENT TO THE CLIENT 9403240017 940324 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/2 HIGH 3 3/8 LOW 3 7/16 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 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 358 30 TO 59 DAYS 368 60 TO 89 DAYS 378 90 TO 119 DAYS 385 120 TO 149 DAYS 397 150 TO 179 DAYS 4 180 TO 239 DAYS 413 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 366 30 DAYS 376 60 DAYS 386 90 DAYS CERTIFICATES OF DEPOSIT 3 ONE MONTH 3 TWO MONTHS 331 THREE MONTHS 357 SIX MONTHS 387 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 360 ONE MONTH 380 THREE MONTHS 408 SIX MONTHS BANKERS ACCEPTANCES 355 30 DAYS 360 60 DAYS 370 90 DAYS 381 120 DAYS 390 150 DAYS 396 180 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 1/4 SIX MONTHS 4 5/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 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 770 60 DAYS 776 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 769 60 DAYS 776 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 575 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 282 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403240015 940324 WHO'S NEWS PYRAMID TECHNOLOGY CORP PYRAMID TECHNOLOGY CORP PAUL J CHIAPPARONE AND JACK L HANCOCK WERE ELECTED TO THIS CLIENT/SERVER COMPUTING CONCERN'S BOARD EXPANDING THE SIZE OF THE BOARD TO SEVEN FROM FIVE MR CHIAPPARONE 54 YEARS OLD IS A SENIOR VICE PRESIDENT FOR ELECTRONIC DATA SYSTEMS CORP MR HANCOCK 63 IS A RETIRED EXECUTIVE VICE PRESIDENT OF PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT 9403240014 940324 FOREIGN EXCHANGE DOLLAR SKIDS AGAINST MARK SPECULATION WIPES OUT BENEFITS OF GERMAN RATE CUT BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK SPECULATION ABOUT GERMANY'S SKYROCKETING MONEYSUPPLY WIPED OUT ANY POSSIBLE BENEFITS FROM YESTERDAY'S EASING IN GERMAN MONEYMARKET RATES SENDING THE DOLLAR SKIDDING AGAINST THE MARK THE GERMAN CENTRAL BANK ALLOCATED ITS 14DAY SECURITYREPURCHASE AGREEMENTS OR REPOS AT 580 A SHAVING OF EIGHT BASIS POINTS FROM THE WEEK BEFORE REPOS ARE THE BUNDESBANK'S MAIN INSTRUMENT FOR INFLUENCING MONEY MARKETS BUT A BUNDESBANK STATEMENT PRECEDING THE RATE CUT QUASHED ANY OPTIMISM THAT THE PACE OF GERMAN RATE CUTS WILL QUICKEN BANK OFFICIALS SAID THAT GERMANY'S M3 MONEYSUPPLY GROWTH FOR FEBRUARY PROBABLY WOULD COME IN ABOVE 15 RUMORS CIRCULATED IN THE MARKET THAT THE NUMBER DUE FOR RELEASE LATER THIS WEEK MIGHT SHOW GROWTH OF ALMOST TWICE THAT THE M3 MONEYSUPPLY GROWTH ESSENTIALLY THE TOTAL OF CASH IN CIRCULATION AND SHORTTERM ACCOUNTS IS THE BUNDESBANK'S FAVORITE INDICATOR OF INFLATIONARY PRESSURES JANUARY'S M3 EXPANSION SHOCKED MARKETS EARLIER THIS MONTH WHEN IT CAME IN AT 212 SHARPLY HIGHER THAN THE GERMAN CENTRAL BANK'S CORRIDOR OF 46 GROWTH THE DOLLAR ALSO RETREATED AGAINST STERLING AS UK INFLATION FIGURES THAT WERE ABOVE EXPECTATIONS QUASHED EXPECTATIONS OF A BANK OF ENGLAND RATECUT THIS WEEK HOWEVER IN AN OTHERWISE BLEAK LANDSCAPE FOR THE DOLLAR THE US CURRENCY DID MANAGE A SMALL CLIMB AGAINST THE YEN WHICH HAS SUFFERED IN THE ESCALATING WAR OF WORDS OVER NORTH KOREA'S BID FOR A NUCLEAR PROGRAM LATE IN NEW YORK THE DOLLAR WAS QUOTED AT AN INTRADAY LOW OF 16802 MARKS DOWN FROM 16885 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10625 YEN UP FROM 106 YEN STERLING WAS TRADING AT 14984 UP FROM 14880 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10638 YEN AND AT 16817 MARKS THE YEN WEAKENED ON NEWS THAT SOUTH KOREA PUT ITS 650000 TROOPS ON SPECIAL ALERT YESTERDAY THE LATEST ESCALATION OF TENSIONS ON THE KOREAN PENINSULA SINCE THE US ANNOUNCED MONDAY IT WOULD DISPATCH PATRIOT MISSILES IN SOUTH KOREA AND A WEAK YEN COMBINED WITH CONTINUED STRENGTH IN THE MARK PUSHED THE MARKYEN CROSS RATE INTO NEW TERRITORY THE MARK PUNCHED THROUGH A CRITICAL RESISTANCE POINT OF 63 YEN DURING MIDMORNING NEW YORK TRADING TRADERS SAID THAT ACCELERATED THE DOLLAR'S DECLINE AGAINST THE MARK THE GERMAN CURRENCY THEN CLIMBED SHARPLY TO AROUND 6330 YEN BEFORE RETREATING SLIGHTLY TO 6322 IN LATE TRADING STILL WELL ABOVE 6280 YEN LATE TUESDAY THE MARKYEN WAS THE BIG TRADE OF THE DAY SAID PAUL FARRELL VICE PRESIDENT AT CHASE MANHATTAN ADDING THAT HE EXPECTS THE MARK WILL CLIMB TOWARD 6380 YEN THE M3 RUMORS HELPED GET IT STARTED HE ADDED WITH THE BUNDESBANK SAYING 15 IS OPTIMISTIC YOU'VE GOT TO FIGURE IT WILL BE 20 TO 25 GROWTH BUT MR FARRELL SAID THE BUNDESBANK MAY CONTINUE TO MOVE REPO RATES GRADUALLY LOWER DESPITE HIGH MONEYSUPPLY GROWTH HE NOTED THAT THE GERMAN CENTRAL BANK HAS CONTINUED TO LOWER REPO RATES DESPITE RECENT NEWS THAT THE M3 SURGED 212 IN JANUARY TRADERS SAID THE WORRIES ABOUT GERMANY'S M3 OVERSHADOWED THE BUNDESBANK REPO EASING YESTERDAY AS WELL AS TUESDAY'S RATE INCREASE BY THE US FEDERAL RESERVE WHICH PUSHED UP SHORTTERM US RATES TO 350 FROM 325 ANOTHER FACTOR SEEN PRESSURING THE DOLLAR LOWER IS A SENSE IN THE MARKET THAT EUROPE MAY BE THE NEXT PLACE TO INVEST SAID BRUCE CAMPBELL CHIEF DEALER FOR FIRST FIDELITY BANK CORP IN NEWARK NJ EUROPEAN ECONOMIES LOOK LIKE THEY HAVE BOTTOMED OUT AND ALL THE REALLY GOOD NEWS IS OUT OF THE DOLLAR HE SAID ADDING THERE'S A SENSE THAT IT CAN ONLY GET BETTER IN EUROPE 9403240013 940324 BREASTIMPLANT COMPANIES TO SET UP 4 BILLION FUND CHICAGO THE THREE MAIN CORPORATE DEFENDANTS IN THE BREASTIMPLANT LITIGATION FORMALLY AGREED TO SET UP A GLOBAL FUND OF NEARLY 4 BILLION TO COMPENSATE THE ONE MILLION OR MORE WOMEN WORLDWIDE WHO HAVE SILICONE IMPLANTS ACCORDING TO THE COMPANIES AND NEGOTIATORS AGREEING TO THE WORLD'S LARGEST PRODUCTLIABILITY DEAL WERE BRISTOLMYERS SQUIBB CO BAXTER INTERNATIONAL INC AND DOW CORNING CORP A JOINT VENTURE OF THE DOW CHEMICAL CO AND CORNING INC AS PREVIOUSLY REPORTED THE THREE COMPANIES HAD REACHED AGREEMENT ON ALL MAJOR ISSUES LAST WEEK AND HAVE SINCE BEEN DRAFTING A FINAL DOCUMENT THE SETTLEMENT WHICH WOULD AFFECT ALL FEDERAL AND STATE LITIGATION OVER SILICONE BREAST IMPLANTS WILL STILL HAVE TO BE APPROVED BY US DISTRICT JUDGE SAM C POINTER JR IN BIRMINGHAM ALA WHO SUPERVISES THE CONSOLIDATED FEDERAL LAWSUITS OVER THE IMPLANTS IF HE DOES WOMEN WILL BE ALLOWED A TIME FRAME OF SEVERAL MONTHS PROBABLY BEGINNING THIS FALL TO DECIDE TO PARTICIPATE IN THE DEAL OR TO OPT OUT AND PURSUE INDIVIDUAL LAWSUITS DOW CORNING AND BRISTOLMYERS NO LONGER MAKE BREAST IMPLANTS BAXTER NEVER DID BUT INHERITED LIABILITY THROUGH A 1985 MERGER PLAINTIFFS' LAWYERS STILL ARE NEGOTIATING WITH THE LAST MAJOR MANUFACTURER STILL HOLDING OUT MINNESOTA MINING & MANUFACTURING CO WHICH OWNED AN IMPLANT MANUFACTURING COMPANY FROM 1977 TO 1984 9403240012 940324 WHO'S NEWS FLEET FINANCIAL GROUP CHIEF GETS 15 BOOST IN TOTAL PAY PACKAGE PROVIDENCE RI TERRENCE MURRAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FLEET FINANCIAL GROUP INC RECEIVED ABOUT 2 MILLION IN TOTAL COMPENSATION IN 1993 15 MORE THAN HIS TOTAL COMPENSATION OF 17 MILLION IN 1992 MR MURRAY'S RAISE ALONG WITH SUBSTANTIAL INCREASES FOR OTHER FLEET EXECUTIVES CAME IN A YEAR OF INCREASED PROFITABILITY FOR THE BANK HOLDING COMPANY THEY WERE ALSO AWARDED AS TOP MANAGEMENT PLANNED A MAJOR COSTCUTTING EFFORT THAT WILL SLASH FLEET'S WORK FORCE OF 27500 EUGENE M MCQUADE CHIEF FINANCIAL OFFICER RECEIVED A 70 INCREASE IN COMPENSATION AFTER A PROMOTION FROM SENIOR VICE PRESIDENT IN 1992 MR MCQUADE EARNED 651000 IN TOTAL COMPENSATION IN 1993 COMPARED WITH 382000 IN 1992 MICHAEL R ZUCCHINI VICE CHAIRMAN RECEIVED A 22 INCREASE TO 891000 FROM 729000 IN 1992 H JAY SARLES ANOTHER VICE CHAIRMAN RECEIVED A 23 INCREASE TO 906000 FROM 737000 FOR 1993 FLEET'S NET INCOME INCREASED 74 FROM A YEAR EARLIER TO 488 MILLION OR 301 A SHARE AS NONPERFORMING ASSETS FELL AND NET INTEREST MARGIN IMPROVED TWO WEEKS AGO FLEET ANNOUNCED THAT IT WILL LAY OFF 3000 EMPLOYEES AND CUT AN ADDITIONAL 1250 WORKERS THROUGH ATTRITION THE WORKFORCE CUTS AND OTHER MEASURES ARE EXPECTED TO REDUCE OPERATING EXPENSES BY 300 MILLION ANNUALLY 9403240011 940324 TECHNOLOGY & HEALTH MICROSOFT PLANS WIRELESS DATA NETWORK WITH MOBILE TELECOMMUNICATIONS FIRM BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOFTWARE GIANT MICROSOFT CORP IS JOINING MOBILE TELECOMMUNICATIONS TECHNOLOGIES CORP THE NATION'S LARGEST PAGING COMPANY TO BUILD AN ADVANCED WIRELESS NETWORK FOR SENDING AND RECEIVING DATA THE 150 MILLION WIRELESS NETWORK TO BE BUILT BY THE MIDDLE OF NEXT YEAR WILL COMPLEMENT MTEL'S VAST ONEWAY PAGING SYSTEM OPERATING UNDER A NEW COMPANY CALLED NATIONWIDE WIRELESS NETWORK IT WILL OFFER TWOWAY DATAMESSAGING SERVICES TO PEOPLE WITH LAPTOP COMPUTERS SPECIAL ALPHANUMERIC PAGERS AND A NEW GENERATION OF MTELDEVELOPED POCKETDATA COMMUNICATORS THIS WILL BE A NEW NETWORK FROM THE GROUND UP PUTTING US IN A LEADERSHIP POSITION IN WIRELESS MESSAGING SAID BERNARD PUCKETT MTEL'S PRESIDENT CURRENTLY THE NEAREST COMPETITOR BELLSOUTH MOBILECOMM A UNIT OF BELLSOUTH CORP IS OFFERING ONEWAY TEXT MESSAGING ON ITS PAGING NETWORK MICROSOFT WHICH HAS BEEN SCRAMBLING TO FIND ITS PLACE IN THE CONVERGENCE OF TELECOMMUNICATIONS AND COMPUTERS WILL BE A MAJOR INFLUENCE ON THE NEW NETWORK AND THE DEVICES THAT CAN USE IT MICROSOFT IS INVESTING 30 MILLION IN THE NEW VENTURE FOR AN 8 STAKE AND WILL WORK WITH MTEL ENGINEERS TO DEVELOP SOFTWARE APPLICATIONS FOR THE NEW TWOWAY NETWORK IN ADDITION MICROSOFT FOUNDERS WILLIAM H GATES AND PAUL ALLEN WILL EACH INVEST AN ADDITIONAL 10 MILLION GIVING MICROSOFT AND ITS TWO COFOUNDERS A LITTLE MORE THAN 13 OF NWN WITH JACKSON MISSBASED MTEL HOLDING MOST OF THE REST A THIRD INVESTOR INTEGRAL PARTNERS A VENTURE CAPITAL FIRM HAS AGREED TO PUT IN 2 MILLION FOR A LESS THAN 2 STAKE FOR MTEL THE NEW NETWORK IS A CHANCE TO MOVE BEYOND BEING JUST A COMPANY THAT CONNECTS BEEPERS PAGING CARRIERS AND TWODECADEOLD BEEPER TECHNOLOGY ARE IN DANGER OF BEING OVERTAKEN BY THE UBIQUITOUS CELLULAR PHONE AND COMPUTERS THAT USE THE CELLULAR NETWORK MTEL IS ALREADY OFFERING EXPANDED SERVICES BEAMING NEWS STOCK QUOTES AND OTHER INFORMATION TO ITS CUSTOMERS THE NEW NETWORK WILL ALLOW CUSTOMERS TO RECEIVE DATA AT 24000 BITS PER SECOND AND SEND DATA AT A 9600BPS RATE MICROSOFT DEVELOPERS ARE WORKING ON APPLICATIONS THAT WILL ALLOW THE NEW NETWORK TO CONNECT DESKTOP COMPUTERS TO MTELDEVELOPED PORTABLE DATA DEVICES OTHER APPLICATIONS WILL ALLOW MOBILE WORK FORCES TO USE THE NEW NETWORK TO SHARE DATA WITH THEIR HOME OFFICES MICROSOFT WILL GIVE US A SIGNIFICANT SHOT IN THE ARM SAID MR PUCKETT WHO RECENTLY JOINED MTEL AFTER RESIGNING AS THE CHIEF STRATEGIST AT INTERNATIONAL BUSINESS MACHINES CORP WORKING WITH MOTOROLA INC MTEL IS DEVELOPING A RANGE OF DEVICES FOR THE NEW NETWORK NEW NUMERIC PAGERS WILL HAVE A BUTTON THAT LETS A USER ACKNOWLEDGE A PAGE WITH I GOT THE MESSAGE ANOTHER PAGER WILL TAKE AND SEND LONGER MESSAGES IN ADDITION NEW CREDITCARDSIZED DEVICES CALLED PCMCIA CARDS WILL CONVERT LAPTOPS TO USE THE NEW NETWORK AND MOTOROLA AND MTEL ARE WORKING ON CHIPS THAT WILL INTEGRATE THESE FUNCTIONS INSIDE FUTURE PORTABLE COMPUTERS THESE NEW COMMUNICATORS WILL BE ULTRALIGHTWEIGHTS WITH A 30DAY BATTERY LIFE MTEL MUST STILL OBTAIN A LICENSE FROM THE FEDERAL COMMUNICATIONS COMMISSION TO OPERATE THE NETWORK BUT THE LICENSE IS ALL BUT ASSURED GIVEN THE FCC'S DECISION IN JUNE 1993 TO GRANT MTEL A PIONEER'S PREFERENCE FOR A LICENSE TO OPERATE THE NETWORK THE DESIGNATION WAS GIVEN IN RECOGNITION FOR TECHNOLOGY DEVELOPED BY MTEL FOR THE NEW TWOWAY SERVICE WITH ITS PIONEER'S RIGHTS MTEL GETS NATIONWIDE RIGHTS TO USE FREQUENCY IN THE 900 MHZ RANGE FOR THE NEW SERVICE WITHOUT HAVING TO PARTICIPATE IN THE EXPECTED BRAWL FOR FCC SPECTRUM GRANTS THE FCC EXPECTS TO GRANT 11 LICENSES TO OPERATE THESE NARROWBAND TWOWAY DATAMESSAGING NETWORKS EARLIER THIS WEEK IT WAS DISCLOSED THAT MR GATES HAD SET UP A COMPANY WITH CRAIG O MCCAW FOR AN ELABORATE SATELLITECOMMUNICATIONS NETWORK MTEL HAD 346200 UNITS IN SERVICE WORLDWIDE AT THE END OF 1993 MAKING IT THE LARGEST PROVIDER OF PAGING UNITS IN SERVICE 9403240010 940324 INTERNATIONAL BRIEF ALL NIPPON AIRWAYS SALE OF SIX PLANES IS PLANNED TO FUND DIVIDEND PAYMENTS ALL NIPPON AIRWAYS JAPAN'S SECONDLARGEST PASSENGER AIRLINE SAID IT DECIDED TO SELL SIX JUMBO JETS THE 10 BILLION YEN 9436 BILLION IN EXPECTED PROCEEDS WILL BE USED PARTLY TO FUND DIVIDEND PAYMENTS OFFICIALS SAID ANA SAID IT WILL SELL THE TWO BOEING 747S AND THE FOUR BOEING 767S TO AIRCRAFTLEASING COMPANIES FACING WEAK DEMAND FOR INTERNATIONAL AND DOMESTIC AIR TRAFFIC THE COMPANY THIS MONTH REVISED DOWNWARD ITS EARNINGS FORECAST FOR THE FISCAL YEAR ENDING MARCH 31 ANA'S OUTLOOK CALLS FOR AN UNCONSOLIDATED PRETAX LOSS OF THREE BILLION YEN THE FIRST RED INK SINCE 1972 DESPITE A PROJECTED NET LOSS OF FOUR BILLION YEN THE COMPANY HAS SAID IT WILL PAY A FULLYEAR DIVIDEND OF THREE YEN A SHARE THROUGH SALES OF ASSETS AND ATTEMPTS TO RUN DOWN RESERVES THE JUMBOJET SALES ARE FACTORED INTO THE EARNINGS REVISION A COMPANY SPOKESMAN SAID 9403240009 940307 LETTERS TO THE EDITOR CANADA'S HEALTH SYSTEM ON BRINK OF BANKRUPTCY IMAGINE THE SURPRISE NOT TO MENTION THE HORROR I FELT WHEN I READ THE FEB 11 ARTICLE INDICATING AMERICA'S 60000 SURGEONS SUPPORT THE SINGLEPAYER CANADIAN TYPE OF HEALTHCARE SYSTEM IT IS NOT THE PREFERENCE OF THE MEMBERS OF THE AMERICAN COLLEGE OF SURGEONS THAT WAS ANNOUNCED BUT THE REPORT OF THE COLLEGE'S BOARD OF REGENTS AND/OR GOVERNORS NEITHER OF WHICH ARE RESPONSIBLE TO THE MEMBERSHIP OF THE COLLEGE THEY ARE NOT ELECTED BY THE MEMBERSHIP ARE NOT ACCOUNTABLE TO THE MEMBERSHIP AND DO NOT SPEAK FOR OR AT THE DIRECTION OF THE MEMBERSHIP OF THE COLLEGE LET ME ASSURE YOU THAT IF THIS ISSUE WERE PUT TO A VOTE OF THE FELLOWS OF THE COLLEGE THE PROPONENTS OF THE SINGLEPAYER SYSTEM WOULD CLOSELY RESEMBLE GENERAL CUSTER AFTER THE BATTLE OF LITTLE BIG HORN AMERICAN SURGEONS ARE VERY MUCH AWARE OF THE FAILURE OF THE CANADIAN SYSTEM NOW TEETERING ON THE BRINK OF BANKRUPTCY SO CLOSE THAT CANADIAN DOCTORS ARE BEING REQUIRED TO ACCEPT ONEWEEK NONPAID LAYOFFS MAKING ALREADY HARDTOGET MEDICAL CARE MORE INACCESSIBLE IN CANADA ALL OF THE PREDICTABLE CONSEQUENCES OF BUREAUCRATIC CONTROL OVER HUMANITARIAN PROFESSIONALISM ARE COMING TO FRUITION US SURGEONS ARE ACUTELY AWARE OF THIS AND WANT NO PART OF IT THE MOST BLATANTLY SOCIALISTIC OF ALL PLANS I WOULD HOPE THE LEADERSHIP OF THE AMERICAN COLLEGE OF SURGEONS WOULD SOON REVERSE THIS RIDICULOUS AND POORLY THOUGHTOUT POSITION AND GET IN STEP WITH THE SURGEONS THEY PURPORT TO REPRESENT SEE RELATED LETTER LETTERS TO THE EDITOR OUR MEDICAL SYSTEM IS HEALTHY THANK YOU WSJ MARCH 24 1994 9403070074 YY94 MM03 9403240008 940324 SMOKE & MIRRORS EPA WAGES WAR ON CIGARETTES BY JACOB SULLUM SMOKING IS EVERYWHERE UNDER ATTACK THIS WEEK A HOUSE SUBCOMMITTEE CONSIDERED THE SMOKEFREE ENVIRONMENT ACT WHICH WOULD BAN SMOKING IN ALMOST ALL INDOOR LOCATIONS EXCEPT RESIDENCES NEW YORK IS POISED TO JOIN MANY OTHER CITIES ACROSS THE COUNTRY INCLUDING LOS ANGELES AND SAN FRANCISCO THAT HAVE RECENTLY ENACTED SWEEPING RESTRICTIONS ON SMOKING IN THE PAST YEAR VERMONT MARYLAND AND WASHINGTON STATE HAVE ALSO ADOPTED SMOKING BANS AS HAVE MAJOR PUBLIC EMPLOYERS INCLUDING THE DEFENSE DEPARTMENT THIS FLURRY OF ANTISMOKING ACTIVITY IS DRIVEN LARGELY BY A 1993 REPORT FROM THE ENVIRONMENTAL PROTECTION AGENCY THAT DECLARED ENVIRONMENTAL TOBACCO SMOKE ETS TO BE A KNOWN HUMAN LUNG CARCINOGEN TESTIFYING IN FAVOR OF THE SMOKEFREE ENVIRONMENT ACT LAST MONTH EPA ADMINISTRATOR CAROL BROWNER NOTED THAT IN THE YEAR SINCE PUBLICATION OF THE EPA REPORT WE HAVE SEEN A RAPID ACCELERATION OF MEASURES TO PROTECT NONSMOKERS IN A VARIETY OF SETTINGS MOST SUPPORTERS OF SUCH MEASURES PROBABLY BELIEVE THAT THE EPA REPORT PRESENTS DEFINITIVE SCIENTIFIC EVIDENCE THAT EXPOSURE TO ETS CAUSES LUNG CANCER BUT THOSE WHO HAVE TAKEN A CLOSER LOOK HAVE COME TO BELIEVE THAT THE EPA TWISTED THE EVIDENCE TO ARRIVE AT A PREDETERMINED CONCLUSION THE OVERRIDING MOTIVE WAS TO DISCOURAGE SMOKING BY MAKING IT LESS ACCEPTABLE AND MORE INCONVENIENT INDEED THE MAIN BENEFIT THAT MS BROWNER CLAIMS FOR THE SMOKEFREE ENVIRONMENT ACT IS ITS EXPECTED IMPACT ON SMOKERS YET COERCING PEOPLE FOR THEIR OWN GOOD STILL RAISES A FEW HACKLES IN THIS COUNTRY SO PATERNALISTS NEED TO OFFER SOME ADDITIONAL JUSTIFICATION THAT'S WHY THEY'VE BEEN PUSHING THE IDEA THAT SMOKING ENDANGERS INNOCENT BYSTANDERS THE PROBLEM IS THE EVIDENCE FOR THIS CLAIM IS WEAK INCONSISTENT AND AMBIGUOUS THE EPA'S REPORT SEEMS DESIGNED TO CONCEAL THAT PROBLEM THE AGENCY'S MOST BLATANT TRICK IS TO USE AN UNCONVENTIONAL DEFINITION OF STATISTICAL SIGNIFICANCE EPIDEMIOLOGISTS GENERALLY CALL AN ASSOCIATION BETWEEN A RISK FACTOR AND A DISEASE SIGNIFICANT IF THE PROBABILITY THAT IT OCCURRED PURELY BY CHANCE IS 5 OR LESS THIS IS ALSO THE STANDARD THAT THE EPA HAD ALWAYS USED FOR RISK ASSESSMENT YET FOR THE REPORT ON ETS THE AGENCY ABANDONED THE USUAL DEFINITION AND CALLED A RESULT SIGNIFICANT IF THE PROBABILITY THAT IT OCCURRED BY CHANCE WAS 10 OR LESS THIS CHANGE IN EFFECT DOUBLES THE ODDS OF BEING WRONG EVEN ACCORDING TO THE BROADER DEFINITION ONLY ONE OF THE 11 US STUDIES THAT THE REPORT ANALYZES FOUND A STATISTICALLY SIGNIFICANT LINK BETWEEN ETS AND LUNG CANCER ACCORDING TO THE USUAL DEFINITION NONE OF THEM DID TO BOLSTER THE EVIDENCE THE EPA COMBINED DATA FROM THESE 11 SOURCES INTO A METAANALYSIS A TECHNIQUE ORIGINALLY INTENDED FOR RANDOMIZED CLINICAL TRIALS UCLA EPIDEMIOLOGIST JAMES ENSTROM SAYS USING METAANALYSIS WITH RETROSPECTIVE CASECONTROL STUDIES SUCH AS THOSE EXAMINED BY THE EPA IS FRAUGHT WITH DANGERS BECAUSE THE STUDIES ARE APT TO DIFFER IN THE WAY THEY DEFINE SMOKERS THE TYPES OF LUNG CANCER THEY INCLUDE AND THE CONFOUNDING VARIABLES THEY CONSIDER AND SO ON IN ANY EVENT THE EPA'S CONCLUSION THAT BEING MARRIED TO A SMOKER RAISES A WOMAN'S CHANCE OF GETTING LUNG CANCER BY ABOUT 19 IS JUSTIFIED ONLY ACCORDING TO THE LOOSER DEFINITION OF STATISTICAL SIGNIFICANCE CHOSEN ESPECIALLY FOR THESE DATA BY THE CONVENTIONAL STANDARD THE METAANALYSIS DOES NOT SUPPORT THE CLAIM THAT ETS CAUSES LUNG CANCER FURTHERMORE THE EPA EXCLUDED FROM ITS ANALYSIS A LARGE US STUDY PUBLISHED IN THE NOVEMBER 1992 AMERICAN JOURNAL OF PUBLIC HEALTH THAT DID NOT FIND A STATISTICALLY SIGNIFICANT LINK BETWEEN ETS AND LUNG CANCER HAD THIS STUDY BEEN INCLUDED THE METAANALYSIS MIGHT NOT HAVE YIELDED A SIGNIFICANT RESULT EVEN BY THE RELAXED STANDARD DESPITE WHAT A JULY 1992 ARTICLE IN SCIENCE DESCRIBED AS FANCY STATISTICAL FOOTWORK THE EPA WAS ABLE TO CLAIM ONLY A WEAK ASSOCIATION BETWEEN ETS AND LUNG CANCER WITH A RISK INCREASE AS LOW AS 19 IT IS VERY DIFFICULT TO RULE OUT THE POSSIBILITY THAT THE ASSOCIATION IS DUE TO OTHER FACTORS IN 1991 GARY HUBER PROFESSOR OF MEDICINE AT THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AND TWO COLLEAGUES EXAMINED THE 30 ETS STUDIES DISCUSSED BY THE EPA IN ITS REPORT AT LEAST 20 CONFOUNDING VARIABLES HAVE BEEN IDENTIFIED AS IMPORTANT TO THE DEVELOPMENT OF LUNG CANCER THEY WROTE IN CONSUMERS' RESEARCH NO REPORTED STUDY COMES ANYWHERE CLOSE TO CONTROLLING OR EVEN MENTIONING HALF OF THESE FURTHERMORE TO COME UP WITH ITS ESTIMATE OF 3000 ADDITIONAL CANCER DEATHS A YEAR MORE THAN TWOTHIRDS OF WHICH ARE SUPPOSEDLY DUE TO EXPOSURE OUTSIDE THE HOME THE EPA RELIED ON SEVERAL CONTROVERSIAL ASSUMPTIONS IT ASSUMED THAT COTININE A NICOTINE METABOLITE IS A RELIABLE MEASURE OF ETS EXPOSURE YET NICOTINE IS PRESENT IN A NUMBER OF FOODS AND THE REPORT ITSELF CONCEDES THAT COTININE IS NOT AN IDEAL BIOMARKER FOR ETS THE EPA ALSO ASSUMED THAT LUNGCANCER RISK IS DIRECTLY PROPORTIONAL TO ETS LEVELS AND THAT NO LEVEL OF ETS CAN BE CONSIDERED SAFE YET DOSERESPONSE RELATIONSHIPS VARY FROM ONE SUBSTANCE TO ANOTHER AND MANY SCIENTISTS BELIEVE THAT A CARCINOGEN HAS TO BE PRESENT AT A CERTAIN LEVEL BEFORE IT CAN DO ANY HARM GIVEN THESE AND OTHER CONTRIVANCES EMPLOYED BY THE EPA IT IS DIFFICULT TO AVOID THE CONCLUSION THAT POLICY HAS DICTATED SCIENCE IN THE CASE OF ETS THIS APPROACH MAY BE POLITICALLY EFFECTIVE IN THE SHORT TERM BUT IT IS ULTIMATELY SELFDEFEATING BY COMPROMISING THE STANDARDS AND METHODS OF SCIENCE THE EXPERTS ALSO UNDERMINE THEIR CLAIM TO AUTHORITY MR SULLUM IS MANAGING EDITOR OF REASON MAGAZINE 9403240007 940324 ABREAST OF THE MARKET CYCLICAL STOCKS RISE ON OPTIMISM BUT BROADER MARKET ENDS MIXED BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK RENEWED OPTIMISM ABOUT THE ECONOMY LIFTED CYCLICAL STOCKS AND LEFT THE MARKET MIXED WITH TUESDAY'S NEWS ON INTEREST RATES OUT OF THE WAY INVESTORS TURNED THEIR ATTENTION BACK TO SIGNS OF LIFE IN THE ECONOMY AND THAT TRIGGERED BUYING IN CYCLICALS SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 691 TO 386946 AIDED BY BIG GAINS IN STOCKS SUCH AS CATERPILLAR WHICH JUMPED 2 TO 120 3/4 AND INTERNATIONAL PAPER WHICH ROSE 1 1/4 TO 70 3/8 BROADBASED INDEXES WERE MIXED BUT ADVANCING ISSUES OUTPACED DECLINERS ON THE NEW YORK STOCK EXCHANGE BY 1159 TO 945 VOLUME ON THE EXCHANGE WAS MODERATELY ACTIVE AT 281420000 SHARES COMPARED WITH 282240000 TUESDAY SHARES OF THE BIG THREE US AUTO MAKERS WERE AMONG THE BENEFICIARIES OF THE OPTIMISM GENERAL MOTORS GAINED 7/8 TO 60 1/2 FORD MOTOR JUMPED 1 3/4 TO 63 3/8 AND CHRYSLER ROSE 3/4 TO 58 1/8 CHRYSLER DISCLOSED THAT IT EXPECTS TO POST NEARRECORD SALES THIS MONTH OTHER TRANSPORTATIONRELATED ISSUES WERE STRONG THE DOW JONES TRANSPORTATION AVERAGE WAS UP 1059 TO 172501 AIDED BY AIRBORNE FREIGHT WHICH JUMPED 7/8 TO 36 1/4 AND ROADWAY SERVICES WHICH RALLIED 2 1/2 TO 70 3/4 ON THE NASDAQ STOCK MARKET A LATE RETREAT IN BONDS THOUGH WAS ENOUGH TO TAKE AWAY SOME OF THE EXUBERANCE PROFITTAKING CARRIED STOCKS WELL OFF THEIR HIGHS LATE IN THE DAY AS THE PRICE OF LONGTERM BONDS DROPPED MORE THAN 1/2 POINT AND THE YIELD ROSE TO 689 THE STANDARD & POOR'S 500 STOCK INDEX FINISHED WITH A LOSS OF 026 OR 006 TO 46854 AND THE NEW YORK STOCK EXCHANGE COMPOSITE ADDED 004 OR 002 TO 26028 THE NASDAQ COMPOSITE INDEX CLIMBED 117 OR 015 TO 79751 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADVANCED 165 OR 035 TO 47338 DRUG STOCKS WERE WEAK AFTER GRUNTAL & CO CUT ITS INVESTMENT RATING ON THE GROUP TO NEUTRAL FROM OUTPERFORM CITING CONCERNS ABOUT PRICE CUTTING IN THE INDUSTRY PFIZER LOST 1 1/2 TO 55 1/2 GLAXO HOLDINGS' AMERICAN DEPOSITARY RECEIPTS FELL 1 TO 18 1/2 TEVA PHARMACEUTICAL SLUMPED 2 3/8 TO 25 7/8 ON NASDAQ AND FOREST LABORATORIES DROPPED 3 3/4 TO 47 1/4 ON THE AMEX RUBBERMAID LOST 1 3/8 TO 28 3/8 AFTER THE COMPANY SAID ITS FIRSTQUARTER EARNINGS WILL FALL SHORT OF SOME ANALYSTS' EXPECTATIONS THE WOOSTER OHIO RUBBER AND PLASTICPRODUCTS MAKER FORECAST EARNINGS OF ABOUT 32 CENTS A SHARE UP FROM 31 CENTS LAST YEAR BUT BELOW ANALYSTS' PROJECTIONS OF ABOUT 35 CENTS FINGERHUT CLIMBED 7/8 TO 32 1/2 BEAR STEARNS & CO ANALYST STEVEN KERNKRAUT UPGRADED THE STOCK TO BUY HE HAD RATED SHARES OF THE MINNETONKA MINN DIRECTMAIL MERCHANDISER HOLD INTERNATIONAL BUSINESS MACHINES SLIPPED 1 TO 57 1/4 THE WALL STREET JOURNAL'S HEARD ON THE STREET COLUMN YESTERDAY REPORTED THAT EXECUTIVES HAVE LITTLE ROOM FOR ERROR IN THEIR EFFORTS TO REVIVE THE ARMONK NY COMPUTER GIANT RESTRUCTURING CHARGES HAVE DRIVEN IBM'S NET WORTH DOWN SO FAR THAT ITS LONGTERM DEBT IS NOW THE EQUIVALENT OF 77 OF SHAREHOLDER EQUITY GLOBAL MARINE LOST 3/8 TO 4 1/4 AFTER THE HOUSTON OIL AND GASDRILLING CONTRACTOR SAID IT EXPECTS TO POST A LOSS OF THREE CENTS TO FOUR CENTS A SHARE FOR THE FIRST QUARTER THE COMPANY WILL RECORD A 35 MILLION CHARGE IN THE PERIOD FOR ACCOUNTING ADJUSTMENTS IT HAD A LOSS OF SIX CENTS A YEAR EARLIER PEP BOYS ROSE 1 1/4 TO 28 1/4 THE COMPANY'S EARNINGS JUMPED TO 25 CENTS A SHARE IN THE FOURTH QUARTER ENDED JAN 29 FROM 20 CENTS A YEAR AGO THE PHILADELPHIA AUTOMOTIVEPARTS RETAILERS SAID ITS NEW FISCAL YEAR HAS GOTTEN OFF TO A SOLID START COLGATEPALMOLIVE LOST 2 TO 60 5/8 AFTER BEAR STEARNS & CO CUT A RATING ON THE STOCK TO HOLD FROM BUY CITING CONCERNS THAT THE NEW YORK HOUSEHOLD AND PERSONALCARE PRODUCTS MAKER'S OPERATING INCOME WON'T GROW AS MUCH AS HAD BEEN EXPECTED IN THE FIRST QUARTER SEAGRAM ADDED 3/4 TO 30 7/8 THE CANADIAN BEVERAGE COMPANY REPORTED EARNINGS OF 47 CENTS A SHARE FOR THE FOURTH QUARTER ENDED JAN 31 EXCLUDING A CHARGE THAT WAS UP FROM 40 CENTS BEFORE A CHARGE IN THE YEARAGO PERIOD NOVELL CONTINUED TO SLIDE LOSING 1 TO 19 ON NASDAQLEADING VOLUME OF 218 MILLION SHARES THE PROVO UTAH SOFTWARE MAKER'S STOCK HAS DROPPED SINCE IT DISCLOSED PLANS FOR AN ACQUISITION EARLIER THIS WEEK SEVERAL ANALYSTS CUT INVESTMENT RATINGS TUESDAY ANALYSTS SAID THE FEDERAL RESERVE'S MOVE TUESDAY TO JUST MILDLY TIGHTEN CREDIT RELIEVED SOME OF THE RECENT UNCERTAINTY ABOUT INTEREST RATES THE CENTRAL BANK'S LACK OF INTERVENTION IN THE MONEY MARKETS YESTERDAY APPEARED TO CONFIRM SPECULATION THAT SHORTTERM RATES WOULD RISE A SLIM 025 PERCENTAGE POINT WHAT PEOPLE ARE COMING TO BELIEVE IS THAT THE ECONOMY IS CHUGGING AWAY AND THE FED IS DOING ALL THE RIGHT THINGS TO MAKE SURE THAT INFLATION DOESN'T GET OUT OF HAND SAID DALE TILLS VICE PRESIDENT OF TRADING AT CHARLES SCHWAB & CO MEANWHILE THERE WAS MORE POTENTIALLY DISTURBING NEWS AFTER THE CLOSE OF TRADING AS SEVERAL MAJOR BANKS LIFTED THEIR PRIME LENDING RATES TO 625 FROM 6 DON HAYS A MARKET STRATEGIST AT WHEAT FIRST BUTCHER & SINGER SAID THAT COULD BE A TEMPORARY SETBACK FOR STOCKS THIS MORNING BUT SAID IT DOESN'T CHANGE HIS OVERALL BULLISH OUTLOOK 9403240006 940324 CORRECTIONS & AMPLIFICATIONS A GRAPH PUBLISHED WITH A MARCH 17 ARTICLE ABOUT LAURENCE TRIBE'S LEGAL PRACTICE STATED THAT MR TRIBE WAS GUARANTEED PAYMENT OF 28 MILLION IN FEES IN A FEDERAL COURT CASE IF THE CASE WERE TO BE SETTLED REGARDLESS OF THE DECISION BY THE COURT OF APPEALS MR TRIBE'S FEE AGREEMENT FOR HIS APPELLATE WORK PROVIDED THAT THE FEE WHETHER MORE OR LESS THAN 28 MILLION WAS CONTINGENT ON HIS CLIENT'S WINNING A COURT JUDGMENT OR SETTLEMENT AND WAS SUBJECT TO OTHER LIMITATIONS KEYED TO THE SIZE OF ANY PAYMENT TO THE CLIENT AMERICAN VENTURE CAPITAL EXCHANGE PORTLAND ORE SAYS THAT IT HAS OPERATED SINCE APRIL 1993 AN ONLINE COMPUTER NETWORK LINKING POTENTIAL INVESTORS WITH BUSINESSES A FINANCING SMALL BUSINESS COLUMN IN THE MARCH 1 EDITION SAID ANOTHER NETWORK STARTING OPERATIONS IN APRIL WAS AN APPARENT FIRST IN THE FIELD THE RESULTS OF THE JD POWER AND ASSOCIATES' VEHICLE DEPENDABILITY INDEX WERE INTERPRETED INCORRECTLY AS DEFECTS PER 100 VEHICLES IN AN ARTICLE YESTERDAY IN FACT THE INDEX MEASURES MODEL LINES AGAINST THE INDUSTRY AVERAGE FOR EXAMPLE CADILLAC HAD AN INDEX SCORE OF 121THE HIGHEST OF ALL NAMEPLATES THAT MEANS CADILLAC SCORED 21 POINTS BETTER OR 21 HIGHER THAN THE INDUSTRY AVERAGE OF 100 MOORCO INTERNATIONAL INC'S PROPOSED ACQUISITION OF FISCHER & PORTER CO REQUIRES THE APPROVAL OF FISCHER & PORTER SHAREHOLDERS AN ARTICLE MONDAY INCORRECTLY REPORTED THAT THE ACQUISITION NEEDS BOARD APPROVAL 9403240005 940324 WHO'S NEWS FOOD INTEGRATED TECHNOLOGIES INC FOOD INTEGRATED TECHNOLOGIES INC BROOKLINE MASS THIS DEVELOPER OF HEALTHFUL FOOD PRODUCTS NAMED WILLIAM B MCKNIGHT A DIRECTOR INCREASING BOARD MEMBERSHIP TO NINE MR MCKNIGHT 49 IS THE FORMER EXECUTIVE VICE PRESIDENT OF NABISCO FOODS GROUP A UNIT OF RJR NABISCO HOLDINGS CORP 9403240004 940324 BUSINESS BRIEF PATRICK PETROLEUM CO CHARGE IN FOURTH QUARTER OF 97 MILLION IS PLANNED PATRICK PETROLEUM CO JACKSON MICH SAID IT WILL TAKE A FOURTHQUARTER 97 MILLION CHARGE RELATED TO THE WRITEDOWN OF SOME OIL AND GAS PROPERTIES WHICH WILL RESULT IN A LOSS FOR THE FISCAL YEAR IN THE YEAREARLIER QUARTER PATRICK HAD A LOSS OF 201 MILLION OR 162 A SHARE THAT QUARTER ALSO INCLUDED A 17 MILLION WRITEDOWN OF OIL AND GAS PROPERTIES AND OTHER ASSETS FOR ALL OF 1992 PATRICK HAD A LOSS OF 219 MILLION OR 179 A SHARE IN LIGHT OF THE LOSSES AND IN AN EFFORT TO IMPROVE PATRICK'S SHAREHOLDER VALUE THE COMPANY SAID IT IS CONSIDERING A MERGER SALE OF ASSETS OR OTHER ACTIONS THE COMPANY SAID IT IS NEGOTIATING THE SALE OF ITS 94 STAKE IN PENSKE CORP A DETROIT HOLDING COMPANY CONTROLLED BY ENTREPRENEUR ROGER PENSKE THE DEAL IS EXPECTED TO BE COMPLETED THIS SPRING 9403240003 940324 WHO'S NEWS INNOVET INC INNOVET INC WEST PALM BEACH FLA RONALD S BRAKKE 53 YEARS OLD HAS BEEN NAMED CHIEF EXECUTIVE OFFICER OF THIS BIOTECHNOLOGY COMPANY HE SUCCEEDS JESSE W HOUDESHELL 60 WHO RETIRED EARLIER THIS MONTH AS CHIEF EXECUTIVE AND PRESIDENT MR BRAKKE FOUNDED BRAKKE ASSOCIATES A CONSULTING FIRM FOR THE ANIMAL HEALTH INDUSTRY IN DALLAS INNOVET SAID IT HAS NO CURRENT PLANS TO NAME A PRESIDENT 9403240002 940324 LAW PHILIP MORRIS MAY SUE ABC FOR TV REPORT BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL PHILIP MORRIS COS IS EXPECTED TO SUE ABC NEWS TODAY CHALLENGING A RECENT REPORT SUGGESTING THAT THE TOBACCO INDUSTRY ADDS NICOTINE TO CIGARETTES TO MAKE THEM MORE ADDICTIVE THE FEB 28 STORY BY ABC'S DAY ONE PROGRAM HAS CREATED A PUBLIC RELATIONS NIGHTMARE FOR THE INDUSTRY IT HAS PROMPTED A LETTER FROM FOOD AND DRUG ADMINISTRATION COMMISSIONER DAVID A KESSLER SAYING HE WAS CONSIDERING EVIDENCE THAT COULD RESULT IN THE FDA'S REGULATING CIGARETTES AS A DRUG WHICH WOULD LIKELY LEAD TO A BAN ON THEM THE LETTER WAS SENT TO THE COALITION ON SMOKING OR HEALTH AN ANTISMOKING GROUP THAT HAD PREVIOUSLY PETITIONED THE FDA TO REGULATE SOME CIGARETTES AS DRUGS BECAUSE FDA REGULATION WOULD REQUIRE CONGRESSIONAL SUPPORT IT IS HIGHLY IMPROBABLE NEVERTHELESS IT HAS DEPRESSED TOBACCO STOCKS AND RAISED CONCERNS ABOUT INCREASING HOSTILITY TOWARD THE INDUSTRY PHILIP MORRIS WHICH HAS SCHEDULED A NEWS CONFERENCE IN WASHINGTON THIS MORNING WITH ITS TOP TWO LAWYERS WOULDN'T CONFIRM THAT IT PLANNED TO SUE BUT SEVERAL INDUSTRY EXECUTIVES SAID THEY HAD BEEN TOLD A LAWSUIT WOULD BE FILED AGAINST ABC A UNIT OF CAPITAL CITIES/ABC INC IT ISN'T CLEAR WHAT LEGAL GROUNDS PHILIP MORRIS WOULD PURSUE IN A STATEMENT THE COMPANY SAID THE BRIEFING WOULD RESPOND TO RECENT ALLEGATIONS MADE AGAINST THE INDUSTRY AND AGAINST PHILIP MORRIS SPECIFICALLY A SPOKESWOMAN FOR ABC DECLINED TO COMMENT DR KESSLER IS SCHEDULED TO APPEAR ON CAPITOL HILL TOMORROW TO TESTIFY ON THE FDA AND TOBACCO AND THE EXPECTED PHILIP MORRIS SUIT IS SEEN PARTLY AS AN ATTEMPT TO DEFLATE DR KESSLER'S TESTIMONY PHILIP MORRIS MAINTAINS THAT DR KESSLER'S INTEREST IN TOBACCO IS PART OF A CALCULATED MOVE BY THE CLINTON ADMINISTRATION TO PRESSURE THE INDUSTRY TO ACCEPT THE PRESIDENT'S PROPOSED INCREASE IN THE CIGARETTE TAX IT'S HARD TO THINK THAT A 75CENT EXCISE TAX PROPOSAL AND SOME OF THESE OTHER INITIATIVES AREN'T RELATED SAID WILLIAM I CAMPBELL THE HEAD OF PHILIP MORRIS'S US TOBACCO UNIT IN A RECENT INTERVIEW MR CAMPBELL'S UNFOUNDED SPECULATIONS AREN'T WORTHY OF SERIOUS RESPONSE SAID AN FDA SPOKESMAN PHILIP MORRIS IS INCREASINGLY FILING LAWSUITS TO CHALLENGE ITS ATTACKERS IT HAS SUED THE CITY OF SAN FRANCISCO AND THE ENVIRONMENTAL PROTECTION AGENCY IN THE PAST YEAR THE DECISION TO SUE ABC IS SOMEWHAT SURPRISING BECAUSE IT COULD OPEN THE SECRETIVE CIGARETTEMAKING PROCESS TO LEGAL DISCOVERY THE ABC REPORT HAS CREATED A THORNY PROBLEM FOR PHILIP MORRIS AFTER WATCHING THE SHOW MANY VIEWERS HAD THE IMPRESSION THAT THE CIGARETTE INDUSTRY WAS SPIKING TOBACCO WITH NICOTINE ALSO NEWS REPORTS ABOUT THE FDA LETTER SUGGESTED THAT NEW EVIDENCE ABOUT THE ADDITION OF NICOTINE WAS THE MAIN REASON FOR DR KESSLER'S INTEREST IN CIGARETTES IN FACT MUCH OF THE DAY ONE SHOW FOCUSED ON A DECADESOLD PROCESS INVOLVING RECONSTITUTED TOBACCO IN THAT PROCESS THE INDUSTRY GRINDS TOBACCO EXTRACTING THE NICOTINE AND WATER TO MAKE A SHEET OF TOBACCO AND THEN ADDS BACK THE NICOTINE LESS THAN HALF THE TOBACCO IN MOST CIGARETTES IS RECONSTITUTED AND THE PROCESS DOESN'T APPLY TO REGULAR TOBACCO LEAF USED IN CIGARETTES THE PROCESS ACTUALLY REDUCES THE AMOUNT OF NICOTINE IN CIGARETTES THE PROCESS IS DESCRIBED IN SOME DETAIL IN THE 1979 SURGEON GENERAL'S REPORT ON SMOKING IT CITES THE USE OF RECONSTITUTED TOBACCO AS ONE REASON TAR AND NICOTINE LEVELS IN CIGARETTES HAVE DECLINED BUT THE PERCEPTION OF LACING CIGARETTES WITH NICOTINE WHICH DR KESSLER'S LETTER ALLUDES TO STIRRED UP THE MEDIA THE PROCESS WAS DENOUNCED BY A NUMBER OF NEWSPAPER COLUMNISTS AND EDITORIAL WRITERS A NEW YORK TIMES EDITORIAL SAID THE FDA'S REVELATION THAT MANUFACTURERS ARE DELIBERATELY ADDING NICOTINE TO CIGARETTES IF TRUE IS A CRIME OF UNCONSCIONABLE DIMENSIONS IN AN INTERVIEW YESTERDAY STEVE PARRISH GENERAL COUNSEL OF PHILIP MORRIS USA SAID HE FELT THAT THE COMPANY HAD BEEN DEFAMED BY ABC THE HARM HE SAID IS WHEN THEY SAY WE SPIKE CIGARETTES WITH NICOTINE IN AN INTERVIEW LAST WEEK CRAIG L FULLER A SENIOR VICE PRESIDENT AT PHILIP MORRIS INDICATED HE FELT THE COMPANY HAD GROUNDS FOR A SUIT AGAINST ABC THEY HAVE GROSSLY OVERSTEPPED THEIR BOUNDS HE SAID AND THEY HAD INFORMATION HAD THEY CHOSEN TO USE IT THAT WOULD HAVE AVOIDED THE INACCURACIES IN THEIR REPORTING 9403240001 940324 WHO'S NEWS VIACOM INC VIACOM INC NEW YORK TWO EXECUTIVES WERE NAMED SENIOR VICE PRESIDENT DEPUTY GENERAL COUNSEL OF THIS ENTERTAINMENT AND COMMUNICATIONS CONCERN EARL H DOPPELT A FORMER SENIOR VICE PRESIDENT AND DEPUTY GENERAL COUNSEL AT PARAMOUNT COMMUNICATIONS INC AND MICHAEL D FRICKLAS FORMER VICE PRESIDENT AND DEPUTY GENERAL COUNSEL/CORPORATE FOR VIACOM THEY WILL SHARE RESPONSIBILITY FOR DAYTODAY MANAGEMENT OF THE COMPANY'S LAW DEPARTMENT REPORTING TO PHILIPPE P DAUMAN EXECUTIVE VICE PRESIDENT GENERAL COUNSEL AND CHIEF ADMINISTRATIVE OFFICER 9403230179 940323 WHO'S NEWS CALGENE INC CALGENE INC DAVIS CALIF ANNE M VENEMAN AND ROBERT E BAKER WERE ELECTED DIRECTORS OF THIS AGRIBUSINESS BIOTECHNOLOGY CONCERN EXPANDING THE BOARD TO 10 MEMBERS MS VENEMAN 45 YEARS OLD IS A COUNSEL WITH THE WASHINGTON LAW FIRM PATON BOGGS & BLOW AND IS A FORMER DEPUTY SECRETARY OF THE US DEPARTMENT OF AGRICULTURE MR BAKER 47 YEARS OLD IS A VICE PRESIDENT OF MARKETING AND STRATEGY FOR SPECIALTY FOODS CORP DEERFIELD ILL 9403230178 940323 WHO'S NEWS NEWMONT MINING CORP NEWMONT MINING CORP DENVER NEWMONT MINING AND NEWMONT GOLD CO SAID THEY NAMED LAWRENCE T KURLANDER TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT ADMINISTRATION AT BOTH GOLDMINING COMPANIES MR KURLANDER 54 YEARS OLD HAD BEEN SENIOR VICE PRESIDENT PUBLIC AFFAIRS AND GOVERNMENT AFFAIRS AT RJR NABISCO INC'S NABISCO INTERNATIONAL UNIT NEWMONT MINING OWNS 892 OF NEWMONT GOLD 9403230177 940323 WHO'S NEWS ALCO STANDARD CORP ALCO STANDARD CORP VALLEY FORGE PA THIS DISTRIBUTION AND SERVICES COMPANY ELECTED THREE DIRECTORS EXPANDING ITS BOARD TO 12 MEMBERS ELECTED WERE PAUL J DARLING II 56 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COREY STEEL CO JAMES J FORESE 58 A VICE PRESIDENT OF INTERNATIONAL BUSINESS MACHINES CORP AND CHAIRMAN OF IBM CREDIT CORP AND DANA G MEAD 58 PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TENNECO INC 9403230176 940323 WHO'S NEWS BARRETT RESOURCES CORP BARRETT RESOURCES CORP DENVERWILLIAM J BARRETT PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS OIL AND NATURAL GAS COMPANY WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR BARRETT 65 YEARS OLD SUCCEEDS C ROBERT BUFORD 60 WHO RESIGNED AS CHAIRMAN BUT REMAINS A BOARD MEMBER 9403230175 940323 WHO'S NEWS SANIFILL INC SANIFILL INC HOUSTON RAYMOND C LOEHR WAS NAMED A DIRECTOR OF THIS WASTE DISPOSAL COMPANY SUCCEEDING CARL E WARDEN WHO RETIRED DR LOEHR IS A PROFESSOR OF CIVIL ENGINEERING AT THE UNIVERSITY OF TEXAS AT AUSTIN 9403230174 940323 LAW HIGH COURT AFFIRMS VERDICTS BACKING INSTRUCTIONS TO JURY BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT SAID SOME STATE JUDGES ARE GIVING JURIES CONFUSING INSTRUCTIONS IN CRIMINAL TRIALS BUT IT SAID THE PROBLEM ISN'T GRAVE ENOUGH TO REQUIRE REVERSAL OF CONVICTIONS THE RULING CAME AS THE HIGH COURT AFFIRMED THE CONVICTIONS AND DEATH SENTENCES OF TWO DEFENDANTS THE MURDERERS WHO WERE CONVICTED IN NEBRASKA AND CALIFORNIA HAD CHALLENGED DEFINITIONS THAT JUDGES GAVE AT THEIR TRIALS OF BEYOND A REASONABLE DOUBT THE STANDARD FOR PROVING GUILT IN CRIMINAL PROSECUTIONS YESTERDAY'S RULING WOULD HAVE BEEN MORE IMPORTANT HAD IT COME OUT THE OPPOSITE WAY THOUSANDS OF CONVICTIONS IN AT LEAST 15 STATES COULD HAVE BEEN ATTACKED IF THE JUSTICES HAD FOUND THAT THE JURY INSTRUCTIONS AT ISSUE WERE UNCONSTITUTIONAL NOT SIMPLY HARD TO UNDERSTAND INSTRUCTIONS IN THE CALIFORNIA AND NEBRASKA CASES STATED THAT TO BE CONVINCED BEYOND A REASONABLE DOUBT JURORS HAD TO BE SURE TO A MORAL CERTAINTY DEFENSE LAWYERS ARGUED THAT THIS PHRASE COMBINED WITH OTHERS ALLOWED CONVICTIONS BASED ON TOO LITTLE PROOF OF GUILT IN THE HIGH COURT'S MAIN OPINION JUSTICE SANDRA DAY O'CONNOR EXPRESSED CONCERN THAT MORAL CERTAINTY IS AN ARCHAIC TERM THAT COULD BEFUDDLE JURORS BUT SHE SAID THAT WHEN TAKEN AS A WHOLE THE INSTRUCTIONS AT ISSUE ADEQUATELY CONVEYED THE IDEA THAT UNLESS JURORS HAVE AN ABIDING CONVICTION OF A DEFENDANT'S GUILT THEY SHOULD VOTE FOR ACQUITTAL 9403230173 940323 CBO SUGGESTS CHANGE FOR SAVINGS BONDS SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE CONGRESSIONAL BUDGET OFFICE SAID THE GOVERNMENT COULD SAVE MONEY BY REDESIGNING THE TREASURY'S SAVINGS BOND PROGRAM TO INCLUDE A PENALTY FOR EARLY REDEMPTIONS THE CBO SAID SAVINGS OF 240 MILLION COULD BE ACHIEVED OVER THE NEXT FIVE YEARS BY CHARGING AN INTEREST PENALTY FOR EARLY REDEMPTIONS OF SAVINGS BONDS SPECIFICALLY THE CBO SAID SAVINGS BOND HOLDERS WHO REDEEM THEIR BONDS BEFORE FIVE YEARS COULD BE CHARGED A SIXMONTH INTEREST PENALTY SUCH A CHANGE WOULD REQUIRE CONGRESSIONAL ACTION THE CBO MADE ITS SUGGESTION IN A NEW REPORT ON DEFICITREDUCTION OPTIONS A SPOKESMAN FOR THE TREASURY'S BUREAU OF PUBLIC DEBT WHICH INCLUDES THE SAVINGS BOND DIVISION SAID THERE IS NOTHING LIKE THAT UNDER CONSIDERATION 9403230172 940323 WHO'S NEWS BANKAMERICA CORP BANKAMERICA CORP SAN FRANCISCO KATHI BURKE THE MOST SENIOR MEMBER OF SECURITY PACIFIC CORP MANAGEMENT TEAM TO SURVIVE THAT BANK'S ACQUISITION BY BANKAMERICA WAS NAMED BANKAMERICA'S FIRST FEMALE VICE CHAIRMAN MAKING HER THE HIGHESTRANKING WOMAN IN THE BANK'S HISTORY MS BURKE 42 YEARS OLD RETAINS HER TITLES AS DIRECTOR OF CORPORATE HUMAN RESOURCES AND A MEMBER OF THE BANK'S MANAGING COMMITTEE SHE HAD BEEN AN EXECUTIVE VICE PRESIDENT AT SECURITY PACIFIC BANKAMERICA SAID 9403230171 940323 WHO'S NEWS WESTINGHOUSE ELECTRIC CORP WESTINGHOUSE ELECTRIC CORP PITTSBURGH ARIS MELISSARATOS 50 YEARS OLD WAS NAMED VICE PRESIDENT OF SCIENCE TECHNOLOGY AND QUALITY AT THIS ELECTRICAL EQUIPMENT POWER GENERATION AND BROADCASTING COMPANY HE SUCCEEDS FRANCIS J HARVEY 50 FORMERLY VICE PRESIDENT OF SCIENCE AND TECHNOLOGY WHO IN LATE JANUARY BECAME PRESIDENT OF THE RECENTLY CREATED WESTINGHOUSE GOVERNMENT & ENVIRONMENTAL SERVICES CO UNIT MR MELISSARATOS PREVIOUSLY HAD THE TITLE OF VICE PRESIDENT OF CORPORATE PRODUCTIVITY AND QUALITY AND HE RETAINS THOSE DUTIES IN HIS NEW POSITION MR MELISSARATOS WILL HAVE OVERALL RESPONSIBILITY FOR THE COMPANY'S SCIENCE AND TECHNOLOGY OPERATIONS AS WELL AS ITS QUALITY AND PERFORMANCE IMPROVEMENT PROGRAMS HE WILL DIRECT THE COMPANY'S WESTINGHOUSE SCIENCE & TECHNOLOGY CENTER AND ITS PRODUCTIVITY AND QUALITY CENTER BOTH LOCATED NEAR PITTSBURGH 9403230170 940323 WHO'S NEWS VIACOM INC VIACOM INC NEW YORK THIS ENTERTAINMENT AND COMMUNICATIONS CONCERN'S PARAMOUNT COMMUNICATIONS INC UNIT NAMED JANE COOPER 38 YEARS OLD PRESIDENT OF ITS PARAMOUNT PARKS DIVISION MS COOPER PREVIOUSLY EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF PARAMOUNT'S GREAT AMERICA THEME PARK IN SANTA CLARA CALIF SUCCEEDS VICKI SUTTON WHO RETIRED IN JANUARY 9403230169 940323 TREASURY PLANS SALE OF SHORTTERM BILLS WASHINGTON THE TREASURY PLANS TO RAISE 375 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 252 BILLION IN SHORTTERM BILLS TO REDEEM 2483 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON JUNE 30 1994 AND SEPT 29 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794L44 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794N42 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9403230168 940323 WHO'S NEWS NANTUCKET INDUSTRIES CHANGES MANAGEMENT ANNOUNCES FINANCING NEW YORK NANTUCKET INDUSTRIES INC WHICH HASN'T REPORTED A QUARTERLY PROFIT SINCE THE FALL OF 1992 ANNOUNCED TOP MANAGEMENT CHANGES AND NEW FINANCING NANTUCKET A MAKER OF UNDERWEAR FOR MEN AND WOMEN UNDER THE GUESS LABEL HAS HAD SUBSTANTIAL OPERATING LOSSES AT A MANUFACTURING FACILITY IT ACQUIRED IN PUERTO RICO PARTLY AS A RESULT THE COMPANY EXPECTS TO POST SIGNIFICANT LOSSES IN THE FIRST QUARTER ENDED MAY 30 NANTUCKET SAID ITS PRESIDENT STEVEN SAMBERG 49 YEARS OLD WAS NAMED TO THE ADDITIONAL POSITIONS OF CHAIRMAN AND CHIEF EXECUTIVE IN THOSE POSITIONS HE SUCCEEDS PRINCIPAL STOCKHOLDER GEORGE GOLD 72 WHO RETIRED ANOTHER PRINCIPAL STOCKHOLDER DONALD GOLD 68 RETIRED AS FULL VICE CHAIRMAN THE COMPANY ALSO NAMED RAY WATHEN TO ITS BOARD AND SAID TWO OTHER DIRECTORS DREW WOFFORD 70 AND PHILIP GOLD 62 RESIGNED LEAVING SIX MEMBERS NANTUCKET SAID IT CLOSED ON A 15 MILLION REVOLVING CREDIT LINE WITH CONGRESS FINANCIAL A FINANCING INSTITUTION OWNED BY CORESTATES FINANCIAL CORP NANTUCKET SAID SAMBERG GROUP A DELAWARE LIMITED LIABILITY COMPANY OWNED BY MR SAMBERG RAY WATHEN AND OTHER OFFICERS OF THE COMPANY CONTRIBUTED 1 MILLION TO THE COMPANY IN EXCHANGE FOR CONVERTIBLE PREFERRED STOCK AT A CONVERSION RATE OF 5 A SHARE ADDITIONALLY CHEMICAL BANK WILL PROVIDE A 2 MILLION LOAN NANTUCKET SAID 9403230167 940323 DIVIDEND NEWS RE CAPITAL CORP RE CAPITAL CORP STAMFORD CONN A REINSURANCE COMPANY RAISED ITS QUARTERLY DIVIDEND 14 TO EIGHT CENTS A SHARE FROM SEVEN CENTS A SHARE PAYABLE JUNE 10 TO SHARES OF RECORD MAY 18 9403230166 940323 WORLD MARKETS TOKYO SHARES SINK 11 ON US RATE CONCERNS GILTS STOCKINDEX FUTURES BOOST LONDON PRICES A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SLID 11 TUESDAY AS UNCERTAINTY ABOUT US INTEREST RATES AND ESCALATING TENSION ON THE KOREAN PENINSULA KEPT MANY INVESTORS ON THE SIDELINES LONDON SHARES CLIMBED SLIGHTLY BOOSTED BY A RISE IN BRITISH GOVERNMENT BONDS AND STRENGTH IN STOCKINDEX FUTURES IN FRANKFURT PRICES ROSE MODERATELY DESPITE CONCERNS ABOUT US RATES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11504 DOWN 016 REFLECTING LOWER ASIA/PACIFIC MARKETS AND HIGHER AMERICAN AND EUROPEAN MARKETS PRECIOUS METALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14907 UP 273 OR 19 WITH BATTLE MOUNTAIN GOLD OF THE US POSTING A 46 GAIN IN ITS LOCAL CURRENCY SECURITIES BROKERAGE HOUSES STOCKS TRAILED AT 15018 DOWN 344 OR 22 WITH DAIWA SECURITIES OF JAPAN SLIDING 47 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH LOST 12271 POINTS ON FRIDAY FELL 21592 TO 2025353 JAPANESE MARKETS WERE CLOSED MONDAY FOR A NATIONAL HOLIDAY ON WEDNESDAY THE NIKKEI INDEX FELL 14612 POINTS TO CLOSE THE MORNING SESSION AT 2010741 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 360 MILLION SHARES COMPARED WITH 48061 MILLION SHARES ON FRIDAY DECLINING ISSUES OUTNUMBERED ADVANCERS 826247 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH LOST 129 POINTS ON FRIDAY SKIDDED 1923 OR 12 TO 162801 INVESTORS WERE JITTERY ABOUT A POSSIBLE INCREASE IN US INTEREST RATES AHEAD OF A MEETING BY THE US FEDERAL RESERVE'S POLICYMAKING PANEL THE FED LATER RAISED THE TARGET FOR THE FEDERALFUNDS RATE OR WHAT BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS TO 3 1/2 FROM 3 1/4 MARKET PARTICIPANTS ALSO NERVOUSLY WATCHED THE SITUATION ON THE NEARBY KOREAN PENINSULA AFTER THE US SAID IT WOULD SEND PATRIOT MISSILES TO SOUTH KOREA AS A DEFENSIVE MEASURE IN RESPONSE TO NORTH KOREA'S FAILURE TO ALLOW INTERNATIONAL INSPECTION OF ITS NUCLEAR FACILITIES IN ADDITION INSTITUTIONAL INVESTORS CONTINUED TO DELAY ACTION UNTIL AFTER FRIDAY THE LAST DAY OF TRADING FOR SETTLEMENT IN THE FISCAL YEAR ENDING MARCH 31 THE NIKKEI BEGAN SLIDING EARLY IN THE SESSION DROPPING AS LOW AS 2020242 AS EQUITIES CAUGHT THE BEARISH SPIRIT IN INDEX FUTURES AND BOND PRICES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 35 POINTS TO 32015 THE FT 30STOCK INDEX FELL HALF A POINT TO 25277 VOLUME WAS 6783 MILLION SHARES COMPARED WITH 5063 MILLION SHARES A DAY EARLIER INVESTORS WHO MOSTLY STAYED ON THE SIDELINES AWAITING THE DECISION ON US INTEREST RATES GAINED CONFIDENCE FROM THE STRENGTH OF JUNE STOCKINDEX FUTURES AND A JUMP OF NEARLY ONE POINT IN BRITISH GOVERNMENT BONDS IN FRANKFURT THE DAX 30STOCK INDEX GAINED 1006 POINTS TO 214134 NEAR ITS INTRADAY LOW OF 214076 AFTER AN EARLY SURGE TO 215531 FIRMNESS IN BONDS BOOSTED STOCK PRICES ALTHOUGH BOND TRADERS' ATTITUDE OF INDEPENDENCE FROM US ECONOMIC CHANGES DIDN'T FULLY CATCH ON WITH STOCK TRADERS WHO REMAINED NERVOUS ABOUT US RATES IN PARIS SHARES SLUMPED IN LIGHT TRADING SLIDING LATE IN THE DAY ON JITTERS ABOUT US INTEREST RATES IN AMSTERDAM EQUITIES FELL UNDERMINED BY THE WEAKER US DOLLAR DECLINES IN FOREIGN STOCK MARKETS AND WORRIES THAT DUTCH INTEREST RATES WON'T DECLINE MUCH FURTHER IN MILAN STOCKS INCLUDING THOSE TRADED ELECTRONICALLY ROSE 11 AS A FEW AGGRESSIVE BUYERS LIFTED THE MARKET HELPING IT RECOVER MOST OF MONDAY'S LOSSES IN THE FACE OF WIDESPREAD SELLING IN MADRID PRICES ROSE SLIGHTLY IN THIN ERRATIC TRADING AMID INVESTOR WORRIES ABOUT US INTEREST RATES IN STOCKHOLM SHARES EASED IN LATE TRADING AFTER HOVERING ABOVE MONDAY'S LEVELS FOR MOST OF THE DAY THIN VOLUME REFLECTED INVESTORS' CAUTION AHEAD OF THE DECISION ON US RATES IN ZURICH EQUITIES ROSE IN MODERATE TRADING BOLSTERED BY A BONDMARKET REBOUND IN HONG KONG SHARES REBOUNDED 4 AS INVESTORS HUNTED FOR BARGAINS AFTER MONDAY'S MARKET PLUNGE THE BUYING PREVAILED DESPITE EXPECTATIONS THAT US INTEREST RATES WOULD RISE AND THAT HONG KONG RATES WOULD INCREASE ON FRIDAY THE MARKET WHICH INITIALLY FELL SHARPLY RECOVERED TO HALT A FIVESESSION LOSING STREAK ALTHOUGH THE UPSWING DIDN'T FULLY ERASE THE 12 OVERALL LOSS TALLIED IN THOSE SESSIONS IN SINGAPORE PRICES ROSE SLIGHTLY HELPED BY BARGAINHUNTING IN A SEESAW SESSION IN KUALA LUMPUR STOCKS CLIMBED 14 IN LIGHT TRADING REBOUNDING SLIGHTLY FROM MONDAY'S 5 TUMBLE IN SEOUL SHARES SANK IN LIGHT TRADING ON WORRIES ESPECIALLY BY FOREIGN INVESTORS ABOUT NORTH KOREA'S NUCLEARWEAPONS PROGRAM IN TAIPEI EQUITIES RECOVERED FROM EARLY LOSSES IN LIGHT TRADING FEARS ABOUT US INTEREST RATES GAVE WAY TO STRONG DEMAND FOR BLUECHIP ELECTRONIC ISSUES IN MANILA SHARES SLID 13 IN LIGHT DEALINGS ON SLUMPING BLUE CHIPS IN WELLINGTON STOCKS DIVED 21 MAINLY BECAUSE OF A SELLOFF IN SHARES OF THE NATIONAL PHONE COMPANY IN BANGKOK PRICES ROSE 27 IN LIGHT TRADING AS INVESTORS REGAINED CONFIDENCE IN THE VOLATILE MARKET MEANWHILE IN MEXICO CITY STOCKS SOARED 54 ON NEWS THAT CHIAPAS PEACE ENVOY MANUEL CAMACHO SOLIS RULED OUT A RUN FOR THE PRESIDENCY THIS YEAR REMOVING ONE OF THE CONCERNS THAT HAS BEEN CONVULSING THE MEXICAN MARKET AMONG CORPORATE DEVELOPMENTS IN LONDON GLAXO HOLDINGS SANK 18 1/2 PENCE OR 27 TO 662 1/2 PENCE THE DRUG MAKER SAID A UNIT OF RIVAL CIBAGEIGY HAS FILED AN ABBREVIATED NEWDRUG APPLICATION FOR A VERSION OF RANITIDINE HYDROCHLORIDE THE ACTIVE INGREDIENT IN GLAXO'S FLAGSHIP ANTIULCER DRUG ZANTAC 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 9403230165 940323 BUSINESS BRIEFS MAAX INC ACQUIRED PEARL BATHS INC OF MINNEAPOLIS FOR 13 MILLION LOUISIANA LAND & EXPLORATION CO EXPECTS CAPITAL SPENDING TO RISE TO 266 MILLION IN 1994 FROM 180 MILLION LAST YEAR REEVES BROTHERS INC'S REEVES INTERNATIONAL UNIT WILL BUILD A 25 MILLION PLANT IN SPARTANBURG SC TO WEAVE FABRIC FOR AUTOMOTIVE AIRBAGS UNITED TECHNOLOGIES CORP'S OTIS ELEVATOR CO INCREASED ITS INVESTMENT IN A CHINESE JOINT VENTURE BY 123 MILLION THE MOVE RAISES THE COMPANY'S STAKE IN CHINA TIANJIN OTIS ELEVATOR CO TO 51 FROM 44 9403230164 940323 TWO WALMARTS FIGHT FOR RIGHT TO BE MANITOBA'S ONE AND ONLY BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL WHEN GIANT US RETAILER WALMART STORES INC CROSSED THE BORDER INTO CANADA THE LAST THING THE COMPANY EXPECTED WAS ANOTHER WALMART STARING IT IN THE FACE SURPRISE IT TURNS OUT THAT WINNIPEG BUSINESSMAN EDWARD J NYCH CALLS HIS BUSINESS WALMART TOO NOT AFTER THE DISCOUNT CHAIN BUT HE SAYS AFTER HIS COUSINS WALTER AND MARTINA MR NYCH AND TWO PARTNERS CLAIM FIRST DIBS ON THE NAME WALMART CANADA IN MANITOBA THEY REGISTERED THEIR PARTNERSHIP THAT WAY WITH THAT PROVINCE'S GOVERNMENT TWO YEARS AGO THAT WAS 23 MONTHS AHEAD OF THE AMERICAN WALMART BASED IN BENTONVILLE ARK WHICH SOUGHT TO REGISTER THE NAME WALMART CANADA INC LAST MONTH AFTER IT BOUGHT 122 WOOLCO STORES ACROSS CANADA FROM WOOLWORTH CORP UNDAUNTED BY THE RETAILING GOLIATH APPROACHING FROM BELOW MR NYCH ASSERTS HIS RIGHTS TO THE NAME IN NO UNCERTAIN TERMS JUST WHAT IS HIS BUSINESS HE SAYS HE WOULD HAVE TO CONSULT HIS LAWYERS BEFORE SAYING OR BEFORE SAYING WHETHER HE WOULD BE WILLING TO LET THE US OUTFIT USE THE NAME IN MANITOBA ASKED IF WALTER OR MARTINA COULD BE INTERVIEWED HE SAYS OH NO THEY'RE IN POLAND HIS COUSINS HE EXPLAINS RECENTLY MOVED THERE FROM THEIR NATIVE UKRAINE AND HE COMMUNICATES WITH THEM ONLY BY MAIL WE EXCHANGE CHRISTMAS CARDS EASTER CARDS AND SO ON HE SAYS BESIDES MR NYCH ADDS HE HASN'T YET TOLD THEM ABOUT THEIR NAMESAKE JANE AREND A SPOKESWOMAN FOR THE WALMART IN ARKANSAS SAYS LAWYERS FOR THE TWO WALMARTS HAVEN'T TALKED YET BUT SHE ADDS THAT NAME IS IMPORTANT FOR US TO CARRY ON BUSINESS IN CANADA AND WE'VE BEEN ADVISED BY LEGAL COUNSEL WE HAVE THE RIGHT TO USE IT IN MANITOBA WE FEEL THE TWO BUSINESSES CAN COEXIST MYRON PAWLOWSKY DIRECTOR OF MANITOBA'S CORPORATIONS BRANCH WHICH OVERSEES PATENTS INCORPORATIONS AND REGISTRATIONS OF BUSINESSES SAID THE BIG WALMART DESPITE BEING SECOND IN LINE MAY USE THE NAME FOR NOW WHILE HE REVIEWS BOTH CLAIMS HIS OFFICE HAS THE AUTHORITY TO ORDER EITHER COMPANY TO CHANGE ITS NAME ONE POSSIBLE SOLUTION COMES TO MIND MR NYCH ASKED WHETHER WALTER IS A COMMON UKRAINIAN NAME CONCEDED THAT HE WELL ANGLICIZED IT FROM HIS COUSIN'S REAL NAME VLADIMIR MAYBE SOON CANADIANS COULD POP DOWN TO THEIR LOCAL VLADMART 9403230163 940323 BARR'S EQUIVALENT TO LIBRIUM POMONA NY GENERIC DRUG MAKER BARR LABORATORIES INC SAID IT REINTRODUCED 25 MILLIGRAM CAPSULES OF ITS GENERIC EQUIVALENT OF ROCHE HOLDING AG'S TRANQUILIZER LIBRIUM FOLLOWING ADDITIONAL STUDIES TO SATISFY THE FEDERAL DRUG ADMINISTRATION'S VALIDATION REQUIREMENT BARR SAID IT EXPECTS TOTAL SALES OF THE DRUG INCLUDING ITS 5 MG AND 10 MG STRENGTHS TO RUN AT ABOUT 3 MILLION A YEAR 9403230162 940323 WHO'S NEWS ARMOR ALL PRODUCTS CORP ARMOR ALL PRODUCTS CORP ALISO VIEJO CALIF KAREN GORDON MILLS WAS ELECTED A DIRECTOR OF THIS SUPPLIER OF AUTOMOTIVEAPPEARANCE PRODUCTS INCREASING THE BOARD TO EIGHT MEMBERS MS MILLS 40 YEARS OLD IS PRESIDENT OF MMP GROUP INC A MANAGEMENT CONSULTING AND INVESTMENT BANKING SERVICES CONCERN 9403230161 940323 NATIONAL SEMICONDUCTOR CORP SANTA CLARA CALIF NATIONAL SEMICONDUCTOR CORP SAID IT WILL REDEEM ITS 4 DEPOSITARY CONVERTIBLE EXCHANGEABLE PREFERRED SHARES THROUGH ITS DEPOSITARY FIRST BANK OF BOSTON THE REDEMPTION PRICE WILL BE 5137 A DEPOSITARY SHARE INCLUDING 57 CENTS OF ACCRUED DIVIDENDS FROM MARCH 1 TO APRIL 21 1994 THE HOLDER HAS THE OPTION OF EXCHANGING THE SHARES FOR 33 SHARES OF NATIONAL SEMICONDUCTOR COMMON 9403230160 940323 SOUTHWEST AIRLINES NEW SCHEDULE DALLAS SOUTHWEST AIRLINES SAID IT WILL BEGIN NONSTOP FLIGHTS FROM BALTIMOREWASHINGTON INTERNATIONAL AIRPORT TO ST LOUIS BIRMINGHAM ALA AND LOUISVILLE KY AND BETWEEN BIRMINGHAM AND HOUSTON THE AIRLINE SAID CERTAIN FLIGHTS WILL BEGIN MAY 26 THE NEW SCHEDULE WILL BE FULLY OPERATING BY JULY 8 SOUTHWEST SAID THE INCREASE REFLECTS ITS ACQUISITION OF NEW AIRCRAFT 9403230159 940323 ECONOMY TRADE DEFICIT GREW IN JANUARY FROM DECEMBER FIRST MONTHLY USE OF DATA FOR GOODS AND SERVICES SHOWS 63 BILLION GAP BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US TRADE DEFICIT IN GOODS AND SERVICES WIDENED IN JANUARY TO 63 BILLION FROM 414 BILLION IN DECEMBER THE COMMERCE DEPARTMENT SAID AS OVERSEAS ECONOMIC SLUMPS HURT US EXPORTS JANUARY'S NUMBERS WERE THE DEPARTMENT'S FIRST MONTHLY FIGURES TO ACCOUNT FOR TRADE IN SERVICES AS WELL AS GOODS UNDER THE OLD METHOD LOOKING SOLELY AT GOODS THE MERCHANDISE TRADE DEFICIT EXPANDED TO 1103 BILLION IN JANUARY FROM DECEMBER'S 875 BILLION THE DEPARTMENT SAID THAT IT WAS EXPANDING ITS REPORT TO REFLECT THE GROWING IMPORTANCE OF SERVICES IN THE US ECONOMY IN 1980 SERVICES REPRESENTED 18 OF US TRADE BY 1993 THEY HAD GROWN TO 29 ACCORDING TO THE DEPARTMENT MOREOVER DURING THAT TIME TRADE IN SERVICES NEARLY QUADRUPLED IN VALUE WHILE TRADE IN GOODS DOUBLED INFORMATION ON TRADE IN SERVICES PREVIOUSLY WAS RELEASED QUARTERLY SERVICES INCLUDE SUCH ITEMS AS TRAVEL AND TOURISM THE BIGGEST SHARE AT ABOUT ONETHIRD AS WELL AS EDUCATION AND MEDICAL CARE THE BULK OF THE SERVICES DATA COMES FROM ESTIMATES THE DEPARTMENT SAID AS WAS THE CASE PREVIOUSLY THE DEPARTMENT SAID IT CAN'T YET COMPILE COUNTRYBYCOUNTRY TRADE FIGURES ON SERVICES BUT WILL CONTINUE TO DO SO ON GOODS EXCLUDING SERVICES EXPORTS TOOK A STEEP DROP IN JANUARY FALLING 68 TO 3873 BILLION THE LARGEST MONTHLY DECLINE ON RECORD IT'S BIG BUT DON'T PANIC SAID BRIAN HORRIGAN SENIOR ECONOMIST WITH LOOMIS SAYLES & CO IN BOSTON WHEN YOU CONSIDER HOW BAD THE WORLD ECONOMY IS IT'S ACTUALLY PRETTY GOOD IN PARTICULAR THE US SHOWED DECLINES IN MERCHANDISE EXPORTS TO JAPAN AND WESTERN EUROPE PARTICULARLY THE UNITED KINGDOM AND GERMANY EXPORTS TO CHINA TUMBLED 472 EXPANDING THE US TRADE DEFICIT WITH CHINA TO 22 BILLION IN JANUARY FROM 13 BILLION IN DECEMBER EXPORTS TO JAPAN FELL 10 WIDENING THE US TRADE DEFICIT WITH THAT COUNTRY TO 462 BILLION THE US SURPLUS WITH MEXICO ITS THIRDLARGEST TRADING PARTNER INCREASED TO 322 MILLION US SERVICES EXPORTS WHICH SHOW NARROWER GYRATIONS MONTH BY MONTH WERE FLAT AT 1575 BILLION IMPORTS OF GOODS FELL 08 TO 4976 BILLION FROM DECEMBER IMPORTS OF SERVICES FELL 18 TO 1102 BILLION ECONOMISTS WERE MILDLY SURPRISED BY THE WIDENING OF THE TRADE GAP ELLIOTT PLATT ECONOMIST FOR DONALDSON LUFKIN & JENRETTE SAID HE EXPECTED THE WEAKER TRADE NUMBERS TO SHAVE ABOUT 05 PERCENTAGE POINT OFF FIRSTQUARTER ECONOMIC GROWTH THESE NUMBERS BEAR OUT THE SUSPICION THAT THE DECEMBER LEVEL OF EXPORTS WAS UNSUSTAINABLY HIGH HE SAID IN PARTICULAR AIRCRAFT SALES THE BIGGEST SINGLE EXPORT IN DECEMBER FELL IN JANUARY AIRCRAFT EXPORTS TUMBLED TO 2 BILLION FROM 25 BILLION IN THE PREVIOUS MONTH TELECOMMUNICATIONS INDUSTRIAL ENGINES AND COMPUTER EQUIPMENT ALSO SAW SIZABLE DECLINES HERE ARE THE COMMERCE DEPARTMENT'S MONTHLY TRADE FIGURES IN BILLIONS OF DOLLARS 9403230158 940323 HOUSE PANEL ON HEALTH APPROVES BOOST IN CIGARETTE TAX SPLITS ON PAYROLL LEVY BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A HOUSE WAYS AND MEANS SUBCOMMITTEE APPROVED A 125APACK INCREASE IN FEDERAL CIGARETTE TAXES BUT REMAINED DEEPLY DIVIDED OVER A PROPOSED PAYROLL TAX TO FINANCE A DEMOCRATBACKED HEALTHREFORM PLAN REP SANDER LEVIN D MICH WARNED THAT HE WON'T SUPPORT THE BILL IF IT INCLUDES A GENERAL PAYROLLTAX INCREASE IF MR LEVIN DEFECTS HE COULD FRACTURE THE NARROW WORKING MAJORITY NEEDED TO REPORT THE MEASURE FAVORABLY TO THE FULL COMMITTEE THIS WEEK WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL WHO HAS STAYED OUT OF THE SUBCOMMITTEE DELIBERATIONS SAID THAT ONE OPTION WOULD BE FOR THE HEALTH PANEL TO REPORT ALL BUT THE REVENUE SECTIONS FAVORABLY LEAVING THE TAX CHAPTER TO BE RESOLVED BY THE FULL COMMITTEE BUT REGARDLESS OF WHAT DEVICE IS FOUND TO KEEP THE BILL MOVING THE POLITICAL SITUATION IS OMINOUS FOR THE CLINTON ADMINISTRATION MEMBERS OF THE WAYS AND MEANS COMMITTEE ARE PICKED BY THE LEADERSHIP IF SEVEN DEMOCRATS ON THE HEALTH PANEL CAN'T COME UP WITH THE VOTES TO ADVANCE A BILL SO IMPORTANT TO PRESIDENT CLINTON IT RAISES QUESTIONS AS TO WHAT RANKANDFILE MEMBERS WILL RISK WHEN THE INITIATIVE COMES TO THE FLOOR LATER THIS YEAR THE CIGARETTETAX INCREASE APPROVED YESTERDAY ALSO WILL BE A SOURCE OF DIVISION AMONG DEMOCRATS THE 125APACK INCREASE IS 50 CENTS MORE THAN THE ADMINISTRATION PROPOSED AND FIVE TIMES THE CURRENT LEVY OF 24 CENTS A PACK IT'S ESTIMATED THAT THE TAX INCREASE WOULD RAISE 6 BILLION MORE THAN THE CLINTON PLAN IN THE YEAR 2000 MONEY THAT COULD PAY FOR A VARIETY OF PUBLICHEALTH INITIATIVES AS WELL AS SUBSIDIES TO HELP SMALL COMPANIES PAY FOR THEIR EMPLOYEES' HEALTH INSURANCE REP NANCY JOHNSON R CONN JOINED FIVE DEMOCRATS IN SUPPORTING THE INCREASE AND THOUGH THE FULL COMMITTEE IS EXPECTED TO ROLL BACK THE FIGURE CLOSER TO THE PRESIDENT'S REQUEST THE PRESSURE FOR REVENUE MAKES TOBACCO HIGHLY VULNERABLE IT IS A KILLER SAID REP MICHAEL ANDREWS D TEXAS CHIEF SPONSOR OF THE CIGARETTETAX INCREASE AND RAISING THE TAX TO OFFSET SOME OF THE COSTS OF HEALTH CARE MAKES GOOD SENSE THE SUBCOMMITTEE BILL SHARES THE ADMINISTRATION'S GOAL OF ASSURING HEALTH COVERAGE FOR ALL AMERICANS BUT IT STREAMLINES OR ABANDONS MAJOR ELEMENTS OF THE PRESIDENT'S PLAN IT WOULD CUT THE BASIC BENEFIT PACKAGE TO REDUCE COSTS AND IT WOULD EXPAND MEDICARE TO GIVE SMALL BUSINESSES AND LOWWAGE WORKERS A GOVERNMENTRUN INSURANCE ALTERNATIVE TO PRIVATE COVERAGE TO AN UNUSUAL DEGREE FOR A WAYS AND MEANS PANEL THE SUBCOMMITTEE HAS HAD TO PROCEED WITHOUT DETAILED COST ESTIMATES ITS PROPOSED 08 PAYROLL TAX WAS ENVISIONED AS A TEMPORARY DEVICE TO KEEP THE BILL FROM ENLARGING THE DEFICIT IN THE YEAR 2000 FOR REP PETE STARK D CALIF THE SUBCOMMITTEE CHAIRMAN SETTING THIS STANDARD OF DEFICIT NEUTRALITY WAS IMPORTANT TO ENFORCE SOME BUDGET DISCIPLINE AGAINST AMENDMENTS TO CUT TAXES OR ADD TO SPENDING BUT DEMOCRATS HAVE BEEN SKITTISH AT FACING THE TAX ISSUE SO EARLY IN THE PROCESS THIS IS EARLY HEAVY LIFTING AND WHY STRAIN YOURSELF IF YOU'RE NOT SURE SAID REP JAMES MCDERMOTT D WASH THAT'S WHAT'S GOING ON HERE SOME OF THOSE MOST OPPOSED TO THE TAX ARE DEMANDING LARGER SUBSIDIES TO HELP SMALL COMPANIES COPE WITH A PROPOSED REQUIREMENT THAT EMPLOYERS HELP PAY FOR THEIR WORKERS' COVERAGE THE HOUSE ENERGY AND COMMERCE COMMITTEE LEADERSHIP WOULD RELY ON A 1 PAYROLL TAX ON COMPANIES WITH MORE THAN 1000 EMPLOYEES TO HELP FINANCE ITS VERSION OF THE PRESIDENT'S PLAN AN ALTERNATIVE SOURCE OF FUNDS WOULD BE TO CAP OR PHASE OUT THE CURRENT INCOMETAX EXCLUSION FOR EMPLOYERPAID HEALTH BENEFITS THE IDEA HAS STRONG REPUBLICAN SUPPORT AND SOME DEMOCRATS APPEAR PREPARED TO EMBRACE IT TOO IF IT WOULD YIELD BIPARTISAN SUPPORT FOR THE HEALTHREFORM INITIATIVE LABOR UNIONS STRONGLY OPPOSE TAXING BENEFITS ONE ANSWER TO THEIR COMPLAINTS COULD BE TO PHASE OUT THE EXCLUSION IN A MANNER THAT PROTECTS BLUECOLLAR AND MOST MIDDLECLASS WORKERS FOR EXAMPLE INDIVIDUALS EARNING 40000 OR LESS COULD CONTINUE TO RECEIVE THEIR BENEFITS TAX FREE AND THE EXCLUSION COULD BE PROGRESSIVELY REDUCED AT HIGHER INCOME LEVELS UNTIL IT IS FULLY PHASED OUT FOR THOSE EARNING 70000 OR MORE THOUGH NOT COMMITTING HIMSELF MR STARK YESTERDAY CITED SUCH A PLAN WHICH WOULD YIELD ABOUT 26 BILLION IN THE YEAR 2000 ROUGHLY THE SAME AMOUNT OF REVENUE AS THE PROPOSED PAYROLL TAX THE DEBATE UNDERSCORES THE POWER OF THE CONGRESSIONAL BUDGET OFFICE IN PROJECTING THE COST OF COMPETING PLANS AND WITH LAWMAKERS TRYING TO LOOK FIVE AND 10 YEARS AHEAD THE BUDGET OFFICE'S PROJECTIONS CAN COMPOUND SEEMINGLY SMALL DIFFERENCES FOR EXAMPLE THE CBO ANTICIPATES THAT COST CONTROLS WOULD INCREASE GOVERNMENT REVENUES BECAUSE THEY WOULD REDUCE CORPORATE HEALTHCARE EXPENDITURES AND TRIM BUSINESSTAX DEDUCTIONS SPECIFICALLY THE CBO SAYS THE CLINTON PLAN WOULD PROVIDE THE GOVERNMENT AN 118 BILLION WINDFALL IN THE YEAR 2000 UNDER ONE SET OF COSTCONTROL ASSUMPTIONS BY COMPARISON THE WAYS AND MEANS BILL WHICH PROPOSES LESSSEVERE COST CONTROLS IS PROJECTED TO LOSE AN ALMOST EQUAL AMOUNT OF REVENUE THAT SAME YEAR THE DIFFERENCE BETWEEN THE TWO REVENUE ESTIMATES IS ALMOST EQUAL TO THE PROPOSED 08 PAYROLLTAX INCREASE REPUBLICANS ARGUE THAT A MORE CAUTIOUS APPROACH WOULD BE TO STRETCH OUT PROPOSED REFORMS TO BE SURE THEY CAN BE FINANCED IN THE SAME VEIN SEN BOB PACKWOOD R ORE THE RANKING REPUBLICAN ON THE SENATE FINANCE COMMITTEE SAID THAT SOCALLED MANDATES REQUIRING EMPLOYERS AND THEIR EMPLOYEES TO SHARE IN PAYING FOR HEALTH INSURANCE COULD BE PHASED IN OVER A 10YEAR PERIOD FOR EXAMPLE WORKERS AND THEIR EMPLOYERS COULD CONTRIBUTE 20 A MONTH THE FIRST YEAR THEN 40 THE NEXT AND SO ON MR PACKWOOD SAID AS CONTRIBUTIONS INCREASE BENEFITS COULD BE IMPROVED BY APPROACHING THE GOAL GRADUALLY THERE WOULD BE LESS NEED FOR TAX CREDITS AND SUBSIDIES TO HELP BOTH SIDES ADJUST TO THE NEW SYSTEM MR PACKWOOD ADDED 9403230157 940323 TECHNOLOGY COMPAQ SLATES BRAZILIAN PLANT HOUSTON COMPAQ COMPUTER CORP RESPONDING TO BOOMING LATIN AMERICAN DEMAND SAID IT PLANS TO BUILD A 15 MILLION PLANT IN SAO PAULO BRAZIL THE MAKER OF PERSONAL COMPUTERS SAID THE 150000SQUAREFOOT FACILITY WHICH WILL OPEN IN SEPTEMBER INITIALLY WILL PRODUCE DESKTOP COMPUTERS THE PLANT IS EXPECTED TO EMPLOY ABOUT 400 PEOPLE COMPAQ WHICH ALREADY OPERATES SUBSIDIARIES IN MEXICO ARGENTINA CHILE COLOMBIA VENEZUELA AND BRAZIL SAID ITS SALES IN LATIN AMERICA GREW 125 LAST YEAR FOLLOWING A 289 JUMP IN 1992 9403230156 940323 MFS COMMUNICATIONS PURCHASE OMAHA NEB FOLLOWING REGULATORY APPROVALS MFS COMMUNICATIONS CO SAID IT CLOSED ITS ACQUISITION OF 80 OF THE ST LOUIS OPERATIONS OF MWR FIBERCOM INC A FIBEROPTIC PHONE AND DATASERVICES PROVIDER MWR FIBERCOM IS A UNIT OF POWER AND GAS COMPANY MIDWEST RESOURCES INC IN DES MOINES IOWA MWR WILL KEEP A 20 OWNERSHIP 9403230155 940323 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB FOR THOSE WHO'D LIKE TO STEP BACK FROM THE WHITEWATER DIN FOR A MOMENT AND SCOPE OUT A HOT NEW ISSUE HERE'S ONE REEMPLOYMENT REEMPLOYMENT IS A NEWWAVE TERM THAT SIMPLY MEANS THIS DITCHING THE EXISTING UNEMPLOYMENT SYSTEM AND REPLACING IT WITH A NEW ONE THAT TAKES IN WORKERS WHO HAVE LOST THEIR OLD JOBS TRAINS THEM IN NEW SKILLS AND FINDS THEM WORK IN NEW INDUSTRIES WITH LAYOFFS AND DOWNSIZINGS CONTINUING APACE THIS IS ONE WAY TO ATTACK THE JOB WORRIES THAT DOG AMERICAN WORKERS EVEN AS THE ECONOMY SEEMS TO BE HUMMING ALONG SO THE CLINTON ADMINISTRATION IS HOT ON THE REEMPLOYMENT CASE BUT ITS APPROACH IS FLAWED IN ONE CRUCIAL RESPECT IT DOESN'T REALLY CLEAN OUT THE FEDERAL GOVERNMENT'S HOPELESS SWAMP OF 154 JOBTRAINING AND EDUCATION PROGRAMS AND THAT HAS GIVEN A NICE POLITICAL OPENING TO SOME SMART REPUBLICANS AND MAVERICK DEMOCRATS WHO FAVOR A MORE RADICAL ATTACK ON THE BUREAUCRACY AT FIRST BLUSH REEMPLOYMENT MAY SOUND LIKE ONE OF THOSE IDEAS ONLY A BELTWAY POLICY WONK COULD LOVE NOT SO CONSIDER JUST ONE STORY ABOUT HOW IT PLAYS IN THE REAL AMERICA WHERE TWO MILLION WORKERS ARE DISPLACED ANNUALLY WHEN PRESIDENT CLINTON GAVE HIS STATE OF THE UNION ADDRESS IN JANUARY STANLEY GREENBERG THE POLLSTER WHO HAS MASTERED THE ART OF PUTTING HIM IN TOUCH WITH EVERY PUBLIC MOOD ORGANIZED A GROUP OF DAYTON OHIO VOTERS TO WATCH THE SPEECH THIS OHIO GROUP CONSISTED OF WAVERING CLINTON SUPPORTERS AND ROSS PEROT VOTERS IN OTHER WORDS THE PIVOTAL MIDDLEOFTHEROAD CONSTITUENCY THAT HOLDS THE BALANCE IN US POLITICS TODAY EACH OF THESE VOTERS WAS GIVEN A METER AND TOLD TO MOVE THE DIAL UP WHEN THEY HEARD SOMETHING THEY LIKED AND DOWN WHEN THEY HEARD SOMETHING THEY DIDN'T LIKE TO NOBODY'S GREAT SURPRISE THE METERS JUMPED THE HIGHEST WHEN MR CLINTON MENTIONED THE POPULAR THREESTRIKESANDYOU'REOUT PROPOSAL TO PUT REPEAT FELONS IN PRISON FOR LIFE BUT TO THE CONSIDERABLE SURPRISE OF SOME CLINTON ADVISERS THE METERS JUMPED NEARLY AS HIGH WHEN MR CLINTON UTTERED THE FOLLOWING PASSAGE WE MUST LITERALLY TRANSFORM OUR OUTDATED UNEMPLOYMENT SYSTEM INTO A NEW REEMPLOYMENT SYSTEM THE OLD UNEMPLOYMENT SYSTEM JUST SORT OF KEPT YOU GOING WHILE YOU WAITED FOR YOUR OLD JOB TO COME BACK WE'VE GOT TO HAVE A NEW SYSTEM TO MOVE PEOPLE INTO NEW AND BETTER JOBS BECAUSE MOST OF THOSE OLD JOBS JUST DON'T COME BACK CLINTON POLITICAL ADVISER PAUL BEGALA NOW RATES REEMPLOYMENT AS ONE OF A HANDFUL OF KEY ISSUES OF THIS ELECTION YEAR THE OTHERS BEING HEALTH CARE CRIME AND WELFARE AND THOUGH THE DEVELOPMENT WAS VIRTUALLY DROWNED OUT UNDER WAVES OF WHITEWATER COVERAGE THE ADMINISTRATION HAS JUST PROPOSED THE REEMPLOYMENT ACT OF 1994 AN AMBITIOUS 13 BILLION PLAN TO REVAMP THE NATION'S UNEMPLOYMENT SYSTEM THE ADMINISTRATION PLAN IS PATHBREAKING IN MANY RESPECTS IT PROPOSES TO CREATE ONESTOP SHOPPING CENTERS FOR THE UNEMPLOYED WHERE WORKERS WHO HAVE LOST THEIR JOBS FOR ANY REASON COULD GO TO GET BOTH BENEFITS AND HELP IN SEARCHING FOR WORK PERHAPS MORE IMPORTANT BADLY UNDERSKILLED WORKERS WHO HAVE BEEN PERMANENTLY LAID OFF COULD GET LONGTERM REEMPLOYMENT INSURANCE TO GIVE THEM TIME TO COMPLETE SERIOUS TRAINING PROGRAMS AND GRANTS TO HELP PAY FOR THE TRAINING THE ADMINISTRATION PROPOSAL ALSO WOULD OPEN THE DOOR TO PRIVATIZING SOME OF THE UNEMPLOYMENT SYSTEM BY ALLOWING BUSINESSES TO BID FOR THE RIGHT TO OPEN AND RUN THE ONESTOP CAREER CENTERS FOR LAIDOFF WORKERS PUBLICEMPLOYEE UNIONS PREDICTABLY HATE THAT IDEA BUT IT EXCITES THE CENTRIST DEMOCRATS OVER AT THE DEMOCRATIC LEADERSHIP COUNCIL WHOSE THINK TANK HAS JUST PRODUCED A PAPER GUSHING THAT THE NEW SYSTEM WILL INJECT THE DYNAMICS OF THE MARKETPLACE INTO THE JOB TRAINING SYSTEM BUT THE CLINTON PLAN ALSO PULLS ITS PUNCHES IN ONE CRUCIAL AREA IT WOULD MERGE JUST SIX CURRENT FEDERAL TRAINING PROGRAMS FOR DISLOCATED WORKERS LEAVING THE SCORES OF OTHER TRAINING PROGRAMS TO DRAG ON NOBODY CAN PRETEND THE CURRENT SYSTEM REALLY CONNECTS TRAINED WORKERS WITH REAL JOBS BY ONE ESTIMATE THE FEDERAL EMPLOYMENT SYSTEM'S SHARE OF JOB PLACEMENTS IN THE US HAS FALLEN BY TWOTHIRDS SINCE 1952 BUT SOME CONGRESSIONAL BARON OR SUBCOMMITTEE HAS A STAKE IN KEEPING ALIVE EACH OF THE OUTDATED TRAINING AND EDUCATION PROGRAMS AND THE ADMINISTRATION DECIDED IT DIDN'T WANT TO BATTLE ALL THOSE FORCES JUST NOW BUT OTHERS AREN'T SO SHY KANSAS REPUBLICAN SEN NANCY KASSEBAUM ALONG WITH DEMOCRAT BOB KERREY OF NEBRASKA HAS INTRODUCED LEGISLATION TO WIPE THE SLATE CLEAN BY GIVING A NEW COMMISSION TWO YEARS TO FIGURE OUT HOW TO DISMANTLE ALL EXISTING PROGRAMS OR CONSOLIDATE THEM INTO ONE SYSTEM DOWN DEEP THIS IS WHAT MANY CLINTONITES WOULD LIKE TO DO AS WELL SEN KASSEBAUM MAY BE DOING THEM A FAVOR BY PRESENTING WHAT SHE CALLS AN OPPORTUNITY THAT SHOULDN'T BE MISSED 9403230154 940323 AMETEK BUYS 54 MILLION SHARES PAOLI PA AMETEK INC SAID IT PURCHASED 54 MILLION OR 124 OF ITS SHARES OUTSTANDING FOR ABOUT 664 MILLION IN A PRIVATE TRANSACTION THE MAKER OF ENGINEERED PRODUCTS FOR INDUSTRIAL AND COMMERCIAL MARKETS PREVIOUSLY ANNOUNCED A PLAN TO SPEND AS MUCH AS 150 MILLION TO BUY ITS OWN SHARES 9403230153 940323 KERRMCGEE GETS IRISH RIGHTS OKLAHOMA CITY KERRMCGEE CORP SAID IT RECEIVED EXPLORATION RIGHTS COVERING 182000 ACRES OFFSHORE IRELAND THE ENERGY AND CHEMICAL COMPANY SAID THE THREE BLOCKS ARE LOCATED AT DEPTHS OF 540 TO 920 FEET AND ARE ABOUT 93 MILES WEST OF GALWAY KERRMCGEE WITH A 60 INTEREST IS THE OPERATOR OF THE PROJECT 9403230152 940323 TECHNOLOGY SOFTWARE PROTECTION FROM CLARIS SANTA CLARA CALIF CLARIS CORP INTRODUCED A SOFTWARE PROGRAM FOR NOVICE COMPUTER USERS WHO WANT TO PROTECT FILES ON THEIR MACINTOSH COMPUTERS FROM HACKERS AND VIRUSES THE SAFETY SUITE PROGRAM COSTS ABOUT 49 COMPARED WITH 179 FOR SYMANTEC CORP'S NORTON UTILITIES WHICH HAS MORE FEATURES AND IS AIMED AT MORE KNOWLEDGEABLE USERS 9403230151 940323 INTERNATIONAL TAIWAN'S INDUSTRIAL OUTPUT INDEX TAIPEI TAIWAN'S INDUSTRIAL PRODUCTION INDEX FOR FEBRUARY DECLINED TO 9230 OFF 81 FROM A YEAR EARLIER AND DOWN 164 FROM JANUARY THE MINISTRY OF ECONOMIC AFFAIRS REPORTED THE MINISTRY ATTRIBUTED THE INDEX'S YEARTOYEAR FALL TO SEASONAL FACTORS CITING FEWER WORKING DAYS IN FEBRUARY BECAUSE OF CHINESE NEW YEAR HOLIDAYS THE MINISTRY SAID THE INDEX FOR THE FIRST TWO MONTHS OF 1994 SHOWED AN INCREASE OF 63 FROM THE YEAREARLIER PERIOD 9403230150 940323 PS NEW MEXICO BONDS THE UTILITY COMPANY SAID IT WILL REDEEM THE BONDS APRIL 20 FOR 10422 OF THE PRINCIPAL AMOUNT PUBLIC SERVICE SAID THE REDEMPTION IS PART OF ITS PLAN TO STRENGTHEN ITS CAPITAL STRUCTURE BY REDUCING LONGTERM DEBT 9403230149 940323 WHO'S NEWS CHRISCRAFT INDUSTRIES INC CHRISCRAFT INDUSTRIES INC NEW YORK THIS TELEVISION STATION OWNER AND VIDEO CONCERN ELECTED THREE DIRECTORS INCREASING THE BOARD TO 11 MEMBERS THEY ARE JOHN C SIEGEL 41 YEARS OLD AND WILLIAM D SIEGEL 39 BOTH SENIOR VICE PRESIDENTS AT CHRISCRAFT AND SONS OF HERBERT J SIEGEL THE COMPANY'S CHAIRMAN AND PRESIDENT AND T CHANDLER HARDWICK III 41 HEADMASTER OF BLAIR ACADEMY AN INDEPENDENT SECONDARY SCHOOL IN BLAIRSTOWN NJ 9403230148 940323 INTERNATIONAL KIA MOTORS FORMS JOINT VENTURE SEOUL SOUTH KOREA SOUTH KOREA'S SECONDLARGEST AUTO MAKER KIA MOTORS CORP SAID IT WILL FORM A JOINT VENTURE IN INDONESIA IN PARTNERSHIP WITH INDONESIA'S INDAUDA CO A SUBSIDIARY OF UDATIN GROUP THE PLANNED VENTURE WILL ASSEMBLE KIA'S COMPACT PRIDE PASSENGER CAR WITH PARTS AND COMPONENTS PROVIDED BY KIA'S PLANTS IN SOUTH KOREA KIA OFFICIALS SAID THE JOINT VENTURE TO BE CALLED INDAUDA PUTRA NASIONAL MOTORS CO WILL BE CAPITALIZED AT 100 MILLION FUNDED 30 BY KIA AND 70 BY THE INDONESIAN PARTNER 9403230147 940323 INTERNATIONAL AUDI TO TRIM HOURS PAY SCALES INGOLSTADT GERMANY AUDI AG THE LUXURY CAR DIVISION OF GERMANY'S VOLKSWAGEN AG SAID IT WILL CUT COLLECTIVE WORKING HOURS AND REDUCE PAY SCALES BY 10 BEGINNING APRIL 1 BASED ON THE MOST RECENT INDUSTRY WAGE AGREEMENT THIS AGREEMENT SECURES JOBS BY ALLOWING US TO OFFSET CURRENT PERSONNEL OVERSUPPLY AND LET US FASHION THE FUTURE OF THE COMPANY IN A FLEXIBLE WAY SAID ANDREAS SCHLEEF MANAGEMENT BOARD MEMBER RESPONSIBLE FOR PERSONNEL 9403230146 940323 SEEGAL BOARDS WASSERSTEIN PERELLA IN COUP' FOR FIRM BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WASSERSTEIN PERELLA INC TRYING TO REBUILD AFTER A SERIES OF EMBARRASSING DEFECTIONS LANDED ITS FIRST BIG FISH FREDERIC SEEGAL FORMER COHEAD OF CORPORATE FINANCE FOR SALOMON BROTHERS MR SEEGAL 46 YEARS OLD WAS NAMED COPRESIDENT OF THE INVESTMENT BANKING BOUTIQUE SHARING THE JOB WITH GARY PARR HIS JOB WILL BE TO HELP CHAIRMAN BRUCE WASSERSTEIN PLOT STRATEGY AS WELL AS BEEF UP THE FIRM'S TELECOMMUNICATIONS AND MEDIA INVESTMENT BANKING ACTIVITIES BOTH AT SALOMON AND LEHMAN BROTHERS MR SEEGAL WAS INVOLVED IN SEVERAL MAJOR MEDIA AND TELECOMMUNICATIONS TRANSACTIONS INCLUDING TIME INC'S MERGER WITH WARNER COMMUNICATIONS INC MR SEEGAL'S HIRING REPRESENTS A COUP FOR WASSERSTEIN PERELLA WHICH HAS BEEN PERCEIVED AS SLIPPING SINCE THE DEPARTURE IN JUNE OF COFOUNDER JOSEPH PERELLA MR PERELLA IS NOW A MANAGING DIRECTOR AT MORGAN STANLEY GROUP INC AND A MEMBER OF ITS OPERATING COMMITTEE IN FEBRUARY CHARLES WARD A WASSERSTEIN PERELLA COPRESIDENT BECAME COHEAD OF WORLDWIDE INVESTMENT BANKING AT CS FIRST BOSTON INC MR SEEGAL SAID HE BELIEVES WASSERSTEIN PERELLA IS MOVING FORWARD THERE'S A POSITIVE MOMENTUM HERE AND I WOULDN'T HAVE JOINED IF I HADN'T FELT THAT IN ADDITION TO HIRING MR SEEGAL WASSERSTEIN RECENTLY HIRED SEVEN OTHER EXECUTIVES AT THE LEVEL OF VICE PRESIDENT OR HIGHER THE HIRINGS ARE DESIGNED TO IMPROVE THE FIRM'S MERGERANDACQUISITIONS BUSINESS AS WELL AS ITS CAPITAL MARKETS ACTIVITIES AT SALOMON INC'S SALOMON BROTHERS MR SEEGAL WAS KNOWN AS ONE OF THREE AMIGOS A REFERENCE TO THE FACT THAT HE SHARED THE TITLE OF DOMESTIC CORPORATE FINANCE CHIEF WITH TWO OTHERS ERIC FAST AND EDUARDO MESTRE I HAVE NO COMPLAINTS ABOUT SALOMON BROTHERS MR SEEGAL SAID ANALYSTS SAID MR SEEGAL'S DECISION TO JOIN WASSERSTEIN PERELLA IS A SIGNIFICANT VOTE OF CONFIDENCE IN THE FIRM THIS IS THE FIRST HIGHLEVEL HIRING THAT WASSERSTEIN HAS DONE FOR A WHILE SAID JOHN KEEFE OF KEEFE WORLDWIDE INFORMATION SERVICES INC WASSERSTEIN PERELLA ENGAGES IN CORPORATE ADVISORY WORK MERCHANT BANKING AND CORPORATE FINANCE RANKED NO 3 IN THE VOLUME OF COMPLETED MERGERS IN 1988 THE COMPANY HAS SLIPPED SUBSTANTIALLY SINCE THEN FOLLOWING THE DEPARTURES OF MESSRS PERELLA AND WARD RIVAL BANKS HAVE CONTINUED TO TRY TO WOO SENIOR EXECUTIVES INCLUDING MR PARR MR PARR A FINANCIAL INSTITUTIONS SPECIALIST COULDN'T BE REACHED TO COMMENT 9403230145 940323 FASB TO PROPOSE GREATER DISCLOSURE ON DERIVATIVES BY BECKY GAYLORD SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE FINANCIAL ACCOUNTING STANDARDS BOARD IS EXPECTED THIS WEEK TO APPROVE A PROPOSAL TO BEEF UP DISCLOSURE REQUIREMENTS FOR HOLDINGS OF DERIVATIVE FINANCIAL INSTRUMENTS UNDER A DRAFT RULE ALL BUSINESSES AND NOTFORPROFIT ORGANIZATIONS WOULD BE REQUIRED TO DISCLOSE ON FINANCIAL STATEMENTS THE AMOUNTS NATURE AND TERMS OF THEIR DERIVATIVES THE RULE WOULD INCLUDE OPTIONS AND CAPS WHICH AREN'T COVERED BY AN EXISTING FASB DERIVATIVESDISCLOSURE STANDARD THE FASB'S EXISTING STANDARD REQUIRES DISCLOSURE OF DERIVATIVES THAT ARE OFF AN ORGANIZATION'S BALANCE SHEET THE NEW RULE WOULD COVER ONBALANCESHEET DERIVATIVES IN AN EFFORT TO PROVIDE A MORE COMPLETE PICTURE OF AN ORGANIZATION'S HOLDINGS A SIGNIFICANT PROPORTION OF DERIVATIVES HASN'T BEEN REQUIRED TO BE DISCLOSED BEFORE SAID FASB PROJECT DIRECTOR HALSEY BULLEN THE DRAFT ALSO WOULD REQUIRE ORGANIZATIONS TO DISCLOSE WHY THEY ARE HOLDING OR ISSUING THE INSTRUMENTS THIS REQUIREMENT IS SIMILAR TO DERIVATIVESDISCLOSURE REQUIREMENTS THAT FEDERAL BANKING REGULATORS RELEASED RECENTLY FOR COMMENT DERIVATIVES ARE FINANCIAL INSTRUMENTS THAT ORGANIZATIONS CAN USE TO HEDGE AGAINST SWINGS IN INTEREST OR EXCHANGE RATES THE GROWTH IN THE USE OF DERIVATIVES HAS EXPLODED IN RECENT YEARS LAWMAKERS HAVE CALLED ON REGULATORS TO GET A BETTER HANDLE ON DERIVATIVES ACTIVITIES THE FASB THE CHIEF RULESETTING BODY FOR ACCOUNTING IN THE US RECENTLY SIGNALED IT WOULD MOVE WITH UNUSUAL SPEED TO PUBLISH A STANDARD REQUIRING DISCLOSURE FOR ALL DERIVATIVES INSTRUMENTS THE MOVE COMES IN RESPONSE TO PRESSURE FROM CAPITOL HILL AND SUCH REGULATORS AS THE SECURITIES AND EXCHANGE COMMISSION THE FASB WILL DISCUSS THE RULE WEDNESDAY AND IS EXPECTED TO VOTE ON IT THIS WEEK IF APPROVED THE BOARD WILL THEN ISSUE THE PROPOSAL FOR COMMENT UNTIL MIDTOLATE JUNE ACCORDING TO A SUMMARY THE FASB AGREED TO AT EARLIER MEETINGS THE BOARD IS EXPECTED TO REQUIRE THAT ORGANIZATIONS' DISCLOSURES SHOW WHETHER THE FAIR VALUES OF OFFBALANCESHEET FINANCIAL INSTRUMENTS ARE UNRECOGNIZED ASSETS OR UNRECOGNIZED LIABILITIES AND REPORT ALL FAIRVALUE INFORMATION ON DERIVATIVES TOGETHER RATHER THAN IN SEPARATE PARTS OF THEIR FINANCIAL STATEMENTS THE BOARD'S DRAFT HOWEVER IS EXPECTED TO STOP SHORT OF REQUIRING ORGANIZATIONS' MANAGEMENT TO DISCLOSE INFORMATION THEY USE TO MEASURE RISK OF DERIVATIVES AND TO ASSESS HOW WELL THEY ARE MEETING OBJECTIVES FOR HOLDING THE INSTRUMENTS 9403230144 940323 SMALL STOCK FOCUS SMALLCAP MARKET SHOWS LITTLE REACTION TO FED'S PLAN TO TIGHTEN RATES FURTHER BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS ENDED THE DAY MIXED AS MOST ISSUES FAILED TO BE HELPED BY A LATE BOND MARKET RALLY THERE WAS LITTLE REACTION IN THE SMALLCAPITALIZATION MARKET TO NEWS THAT THE FEDERAL RESERVE AS WIDELY EXPECTED DECIDED TO TIGHTEN MONETARY POLICY FURTHER THE RUSSELL 2000 INDEX WAS UP 057 OR 021 AT 26956 WHILE THE NASDAQ COMPOSITE INDEX FELL 096 OR 012 TO 79634 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX WAS UP 033 OR 013 AT 26024 AND THE DOW JONES INDUSTRIAL AVERAGE AT 386255 WAS DOWN 230 OR 006 NASDAQ DECLINERS LED ADVANCERS 1548 TO 1500 ON TOTAL VOLUME OF 305 MILLION SHARES UP FROM 262 MILLION MONDAY NATIONAL MARKET VOLUME WAS 265 MILLION SHARES COMPARED WITH 223 MILLION MONDAY INTERNATIONAL STANDARDS GROUP ROSE 1 1/8 OR 41 TO 3 7/8 FOLLOWING MONDAY'S ANNOUNCEMENT BY THE BOCA RATON FLA ACCOUNTING COMPANY THAT TWO INVESTOR GROUPS EXPRESSED UNSOLICITED INTEREST IN BUYING STAKES IN THE COMPANY WITH THE POSSIBILITY OF GAINING CONTROL SOUTHERN STARR BROADCASTING GROUP ROSE 3 1/8 OR 30 TO 13 1/2 AFTER THE ALEXANDRIA VA COMPANY SAID IT RECEIVED SEVERAL UNSOLICITED EXPRESSIONS OF INTEREST IN ACQUIRING IT OR OTHER POSSIBLE BUSINESS COMBINATIONS DELRINA POSTED A GAIN OF 3 1/2 OR 19 TO 21 1/2 AFTER THE TORONTO COMPANY SAID IT AND ALPHANET TELECOM SETTLED A CASE BROUGHT BY ALPHANET AGAINST DELRINA FOR MARKETING A FAX MAILBOX SERVICE TERMS WEREN'T DISCLOSED BUT THE COMPANIES SAID BOTH WILL HAVE THE RIGHT TO DEVELOP MARKET AND SHIP A FAX MAILBOX SERVICE MGI PHARMA MINNEAPOLIS ROSE 1 3/4 OR 16 TO 14 AFTER SAYING SALAGEN TABLETS A NEW TREATMENT FOR RADIATIONINDUCED DRY MOUTH IN HEAD AND NECK CANCER PATIENTS HAD BEEN CLEARED FOR MARKETING BY THE FOOD AND DRUG ADMINISTRATION SUMMIT TECHNOLOGY CLIMBED 2 1/2 OR 91 TO 32 3/4 AND VISX ROSE 2 1/8 OR 99 TO 23 5/8 FOLLOWING A FOOD AND DRUG ADMINISTRATION COMMITTEE DECISION MONDAY RECOMMENDING APPROVAL OF THE COMPANIES' EXCIMER LASER SYSTEMS FOR TREATING CORNEAL SCARS AND DISEASES DAVEL COMMUNICATIONS GROUP ROSE 3/4 OR 66 TO 10 1/4 THE TAMPA FLA TELECOMMUNICATIONS COMPANY ACQUIRED THE ASSETS OF US SOUTH TELECOM INC FOR 142500 GLOBALINK WAS UP 5/8 OR 51 AT 13 AFTER THE FAIRFAX VA FOREIGNLANGUAGETRANSLATION SOFTWARE FIRM POSTED FOURTHQUARTER EARNINGS OF ONE CENT A SHARE COMPARED WITH A YEARAGO LOSS OF 13 CENTS LECHTERS FELL 1 OR 67 TO 14 AFTER THE HARRISON NJ HOUSEWARES STORE CHAIN REPORTED LOWER FOURTHQUARTER EARNINGS WASHINGTON MUTUAL SAVINGS BANK FELL 1 1/2 OR 7 TO 20 FOLLOWING NEWS SMITH BARNEY SHEARSON LOWERED ITS RATING ON THE THRIFT TO OUTPERFORM FROM BUY THE THRIFT TOLD MAJOR SHAREHOLDERS AND INVESTORS MONDAY THAT IT EXPECTS FIRSTQUARTER AND FULLYEAR NET TO TRAIL EXPECTATIONS SCOTT BLEIER VICE PRESIDENT OF TECHNICAL RESEARCH AT JOSEPHTHAL LYON & ROSS SAID NASDAQ STOCKS TYPICALLY LEAD THE PRIMARY MARKETS NOTING THAT WHILE BIG BOARD ISSUES HAVE LANGUISHED RECENTLY THE NASDAQ COMPOSITE INDEX HIT A SERIES OF NEW HIGHS THE DROP IN THE NASDAQ COMPOSITE INDEX YESTERDAY ALLOWS THE MARKETS TO GET INTO EQUILIBRIUM HE SAID WHILE THE TIGHTENING OF MONETARY POLICY OFTEN SENDS SHIVERS DOWN STOCK INVESTORS' SPINES ANALYSTS WERE QUICK TO NOTE THAT YESTERDAY'S FED ANNOUNCEMENT WAS THE LEAST DRASTIC MOVE THE CENTERAL BANK COULD TAKE SHORT OF NOT CHANGING POLICY AT ALL THE FED IS WIDELY SEEN AS HAVING RAISED THE FEDERAL FUNDS RATE BY A QUARTER OF A PERCENTAGE POINT TO 35 THERE HAD BEEN SPECULATION THE CENTRAL BANK WOULD BOOST THE FUNDS RATE BY HALF A PERCENTAGE POINT OR EVEN RAISE THE DISCOUNT RATE BECAUSE YESTERDAY'S MOVE WAS RELATIVELY LIMITED MANY ANALYSTS EXPECT TO SEE STOCK PRICES MOVE HIGHER WE WILL GO ON TO NEW HIGHS SAID MR BLEIER OF JOSEPHTHAL LYON HE EXPECTS THE MARKET TO BE DRIVEN BY STRENGTH IN THE ECONOMY AND BECAUSE MERGER MANIA WILL CONTINUE THE LEADERSHIP FROM SMALLCAP STOCKS WILL CONTINUE DESPITE THE FED'S TIGHTENING SAID GREG KUHN HEAD OF KUHN ASSET MANAGEMENT BUT MR KUHN CAUTIONED THAT THE CHANGE IN THE TREND OF INTEREST RATES REMOVED THE MOST BULLISH PROP FROM THE STOCK MARKET AND THAT EVENTUALLY HIGHER RATES WILL TAKE THEIR TOLL 9403230143 940323 GTE UNIT UNVEILS NETWORK STAMFORD CONN GTE CORP'S GTE SPACENET CORP INTRODUCED AN ONLINE NETWORK TO DELIVER IMAGES AND MULTIMEDIA APPLICATIONS FOR BUSINESSTOBUSINESS USERS THE COMPANY SAID THE NEW SERVICE CALLED LUMINARY WILL TRANSMIT HIGHRESOLUTION IMAGES AND DOCUMENTS TO A BUSINESS USER'S COMPUTER IN SECONDS GTE HOPES TO SELL THE SERVICE TO BUSINESSES SUCH AS LAW OFFICES ENGINEERING FIRMS AND PUBLISHERS WHICH TYPICALLY STORE DATA ON CDROMS USING COMPUTER SATELLITE AND FIBEROPTIC TECHNOLOGIES LUMINARY CAN DELIVER A 20PAGE DOCUMENT WITHIN SIX SECONDS AS OPPOSED TO THE FOURTEEN MINUTES IT WOULD TAKE BY A 9600BAUD SERVICE GTE SAID 9403230142 940323 TUESDAY'S MARKETS BONDS LEAP AS FED ACTS TO RAISE SHORT RATES BY STEVEN E LEVINGSTON AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL BOND PRICES SOARED AFTER THE FEDERAL RESERVE SAID IT WILL RAISE SHORTTERM INTEREST RATES FOR THE SECOND TIME IN SEVEN WEEKS STOCK PRICES WERE MIXED AND THE DOLLAR WAS STEADY THE TREASURY'S BENCHMARK 30YEAR BOND JUMPED NEARLY 1 1/4 POINTS OR NEARLY 1250 FOR EACH 1000 FACE AMOUNT WITH THE YIELD FALLING TO 685 FROM 695 MONDAY THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 230 POINTS TO 386255 STANDARD & POOR'S 500STOCK INDEX EDGED UP 026 TO 46880 AND THE NASDAQ COMPOSITE INDEX FELL 096 TO 79634 THE BOND MARKET RALLY ERUPTED AFTER THE FED MADE AN UNUSUAL ANNOUNCEMENT DURING YESTERDAY'S MEETING OF THE FEDERAL OPEN MARKET COMMITTEE THE ANNOUNCEMENT SAID THE FED HAD DECIDED TO INCREASE SLIGHTLY THE DEGREE OF PRESSURE ON RESERVE POSITIONS THE MOVE WAS EXPECTED TO BE ASSOCIATED WITH A SMALL INCREASE IN SHORTTERM MONEY MARKET INTEREST RATES BOND TRADERS INTERPRETED THE ANNOUNCEMENT AS A DECISION TO RAISE THE FEDERALFUNDS RATE AT WHICH BANKS MAKE OVERNIGHT LOANS TO EACH OTHER TO 35 FROM 325 THE FED WOULDN'T CONFIRM THIS YESTERDAY WHICH IS CUSTOMARY THE SIZE OF THE FED'S MOVE WILL BE CLEAR TODAY DURING THE TRADITIONAL 1130 AM EST INTERVENTION PERIOD WHEN THE NEW YORK FED'S OPEN MARKET DESK MOVES INTO THE MARKET THE FED LAST MOVED TO RAISE THE FUNDS RATE ON FEB 4 IN ORDER TO MAKE A PREEMPTIVE STRIKE AGAINST INFLATIONARY PRESSURES BUT THE RATE INCREASE THE FIRST IN FIVE YEARS SPARKED WIDESPREAD WORRIES IN THE WORLD'S FINANCIAL MARKETS THAT THE FED HAD DONE TOO LITTLE TOO LATE TO HEAD OFF INFLATIONARY PRESSURES BY LATE LAST WEEK THE BENCHMARK 30YEAR TREASURY BOND HAD DROPPED MORE THAN SEVEN POINTS OR MORE THAN 70 FOR A BOND WITH 1000 FACE VALUE YESTERDAY'S RATE BOOST SOOTHED INVESTORS' FEARS BUT IT WASN'T EXPECTED TO END THE NERVOUSNESS THAT HAS PLAGUED THE BOND MARKET SINCE THE FED MOVE ON FEB 4 YESTERDAY'S RALLY WAS A SIGH OF RELIEF SAID JOHN CANAVAN AN ANALYST AT STONE & MCCARTHY RESEARCH ASSOCIATES OF PRINCETON NJ AS FAR AS WHETHER OR NOT IT'S GOING TO BE ENOUGH TO GET THE MARKET MOVING HIGHER I'M NOT SO SURE HE ADDED THE BEAR MARKET PSYCHOLOGY STILL EXISTS DESPITE THE MOVE TODAY AND IT'S GOING TO TAKE SOME TIME TO TURN THAT AROUND PETER HIRSCH MANAGING DIRECTOR AND HEAD OF GOVERNMENT TRADING AT SALOMON BROTHERS INC SAID THIS IS JUST THE SECOND STEP ON A RELATIVELY LONG ROAD OF INTEREST RATE BOOSTS AND THE MARKET MAY NOT BE PERCEIVING THE LENGTH OF THIS ROAD MR HIRSCH SAID HE DOESN'T THINK LONGTERM INTEREST RATES ARE LIKELY TO RETURN TO THE LEVEL OF LAST OCTOBER WHEN THE 30YEAR TREASURY BOND YIELD HIT 579 HE SAID SUCH A LEVEL ISN'T LIKELY UNLESS THE ECONOMY SINKS BACK INTO RECESSION THE STOCK MARKET MOSTLY TOOK THE FED NEWS IN STRIDE ANALYSTS SAID THE MUTED REACTION WAS UNDERSTANDABLE BECAUSE A RATE RISE HAD BEEN SO WIDELY ANTICIPATED THIS IS NOT MUCH OF A NEWS EVENT IT WAS WIDELY SIGNALED AND LARGELY DISCOUNTED SAID ABBY J COHEN MARKET STRATEGIST AT GOLDMAN SACHS JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL SAID THE MILD RESPONSE SIGNALED THAT THE STOCK MARKET HAS REGAINED ITS FOOTING AFTER STUMBLING IN THE WAKE OF THE FEB 4 RATE INCREASE WHAT WE'RE SEEING TODAY IS THAT INVESTORS HAVE ACCEPTED THE FACT WE'RE IN AN ERA OF FED TIGHTENING HE SAID BUT THE NEW ERA OF HIGHER INTEREST RATES ISN'T A THREAT TO THE STRENGTH OF THE STOCK MARKET MR BATTIPAGLIA CONTENDED HE PREDICTED THAT THE INDUSTRIAL AVERAGE WILL MAKE ANOTHER RUN TOWARD THE 4000 LEVEL IN APRIL THANKS TO GAINS IN CORPORATE EARNINGS EARNINGSDRIVEN MOMENTUM IS REPLACING THE INTERESTRATE BENEFITS THE STOCK MARKET HAS BEEN LIVING OFF FOR SO LONG MR BATTIPAGLIA SAID ECONOMICALLY SENSITIVE STOCKS LED THE MARKET A FURTHER SIGN OF INVESTORS' CONFIDENCE IN THE ECONOMIC EXPANSION ANALYSTS SAID TOBACCO STOCKS WERE AMONG THE DAY'S WORST PERFORMERS AFTER A HOUSE HEALTH SUBCOMMITTEE VOTED TO RAISE FEDERAL CIGARETTE TAXES BY 125 A PACK MUCH HIGHER THAN MANY ANALYSTS HAD EXPECTED WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 016 TO 11504 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2822 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1189 ISSUES ROSE AND 925 FELL BOND PRICES ROSE THE TREASURY'S 10YEAR ISSUE GAINED NEARLY A POINT OR ALMOST 10 FOR EACH 1000 FACE AMOUNT TO YIELD 642 THE DOLLAR WAS STEADY IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16885 MARKS AND 10605 YEN COMPARED WITH 16895 MARKS AND 10600 YEN MONDAY 9403230141 940323 POLITICS & POLICY CLINTON RELIES HEAVILY ON WHITE HOUSE POLLSTER TO TAKE WORDS RIGHT OUT OF THE PUBLIC'S MOUTH BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GEORGE BUSH SPENT 216000 FOR PUBLICOPINION POLLS IN 1989 AND 1990 ACCORDING TO HIS OWN POLLSTER LAST YEAR BILL CLINTON SPENT 1986410 ALL OF PRESIDENT CLINTON'S POLLING MONEY PAID OUT OF THE DEMOCRATIC NATIONAL COMMITTEE TREASURY WENT TO STANLEY GREENBERG PROPRIETOR OF GREENBERG RESEARCH THE EXCLUSIVE POLLTAKING FIRM FOR THE WHITE HOUSE AND THE DEMOCRATIC NATIONAL COMMITTEE BOY I WOULDN'T MIND HAVING THAT CONTRACT SAYS ED GOEAS A LEADING REPUBLICAN POLLSTER TWO MILLION DOLLARS IS AN INCREDIBLE AMOUNT OF MONEY IN OUR BUSINESS MR GOEAS AND HIS TWO PARTNERS EXPECT TO COLLECT 4 MILLION THIS YEAR FROM 80 CLIENTS NO WHITE HOUSE IN HISTORY HAS BEEN SO AWASH IN DATA AS THIS ONE MORE THAN ANY OTHER PRESIDENT MR CLINTON THE FIRST BABY BOOMER PRESIDENT RELIES ON POLLS AND FOCUS GROUPS IN HELPING TO DETERMINE WHAT HE NEEDS TO BE SAYING AND HOW HE SHOULD BE SAYING IT STAN GREENBERG SCARES THE HELL OUT OF ME SAYS REPUBLICAN AND FORMER ROSS PEROT POLLSTER FRANK LUNTZ HE JUST DOESN'T HAVE A FINGER ON THE PEOPLE'S PULSE HE'S GOT AN IV INJECTED INTO IT HE'S THE BEST THE RESULT OF THE COLLABORATION BETWEEN THE 48YEAROLD MR GREENBERG AND THE 47YEAROLD PRESIDENT IS OBVIOUS TO SPECIALISTS IN MASS COMMUNICATIONS YOU CAN HEAR IT IN THE RHETORIC SAYS MR LUNTZ THE WORDS HE USES COME RIGHT OUT OF STAN GREENBERG'S FOCUS GROUPS GREENBERG LITERALLY PULLS THE WORDS OUT OF THE MOUTHS OF ORDINARY AMERICANS AND PUTS THEM IN THE MOUTH OF THE PRESIDENT THE RESULT IS BILL CLINTON SPEAKS LIKE REAL AMERICANS SPEAK I WISH WE HAD A STAN GREENBERG RIVAL POLLSTERS POINT TO MR CLINTON'S HEALTHCARE ADDRESS TO CONGRESS ON SEPT 22 AS A STRIKING EXAMPLE OF HIS COLLABORATION WITH MR GREENBERG IN THAT WIDELY PRAISED SPEECH MR CLINTON LAID DOWN SIX BASIC PRINCIPLES FOR REFORMING AMERICA'S HEALTHCARE SYSTEM SECURITY SIMPLICITY SAVINGS CHOICE QUALITY AND RESPONSIBILITY I WAS DOING FOCUS GROUPS AT THE SAME TIME SAYS MR LUNTZ THOSE WERE THE EXACT WORDS I WAS HEARING TOO IN SUCH FOCUS GROUP SESSIONS SMALL GROUPS OF PEOPLE LED BY A PROFESSIONAL COMMUNICATIONS EXPERT ARE PAID TO PARTICIPATE IN DISCUSSIONS OF MAJOR AND SOMETIMES MINOR POLICY ISSUES THE SESSIONS ARE NORMALLY RECORDED BY MICROPHONES AND HIDDEN CAMERAS OF COURSE MR GREENBERG CAN'T SOLVE ALL OF THE PROBLEMS LURKING INSIDE THE CLINTON WHITE HOUSE RHETORIC EVEN IF IT HAS THAT DOWNHOME FEELING ISN'T THE SAME AS POLICY FLAWED POLICY IS STILL HARDER TO DEFEND THAN SOUND POLICY AND POLLS AND FOCUS GROUPS CAN'T DO MUCH ABOUT INEPTITUDE IN HANDLING SUCH MATTERS AS THE INVESTIGATIONS SURROUNDING WHITEWATER DEVELOPMENT CO BUT WHEN MR CLINTON IS ON A HIGH AND HE'S THE KIND OF PRESIDENT WHO GOES THROUGH EXTRAORDINARY UPS AND DOWNS IT'S USUALLY BECAUSE HE AND MR GREENBERG ARE WORKING TOGETHER AS A TEAM TELLING AMERICANS IN FAMILIAR LANGUAGE WHAT THEY WANT TO HEAR NOT EVERYONE THINKS WHAT THEY'RE DOING IS SUCH A GREAT IDEA THEY SEEM TO BE CHECKING PEOPLE'S REACTIONS TO THE NEWS EVERY DAY SAYS ROBERT TEETER PRESIDENT BUSH'S POLLSTER AND NOW ONE OF THE POLLSTERS FOR THE WALL STREET JOURNAL/NBC NEWS POLL BUT WHEN YOU COLLECT THIS MUCH DATA YOU GET INTO THE OLD PROBLEM OF NOT BEING ABLE TO TELL THE TREES FROM THE FOREST MR GREENBERG WON'T TALK ABOUT WHAT'S IN HIS PRESIDENTIAL POLLS OR WHAT HE'S BEEN TELLING THE PRESIDENT WITH WHOM HE MEETS ABOUT ONCE A WEEK BUT HE SAYS MR CLINTON IS A GOOD CLIENT HE WORRIES ABOUT LOSING TOUCH MR GREENBERG SAYS THAT'S HOW HE PUTS IT OVER AND OVER AGAIN LOSING TOUCH' IT GOES BACK TO ARKANSAS HE THINKS HE LOST HIS FIRST BID FOR REELECTION BECAUSE HE HAD LOST TOUCH WITH THE VOTERS RECORDS ON FILE AT THE FEDERAL ELECTION COMMISSION UNDERLINE JUST HOW BUSY MR GREENBERG IS MOST MONTHS IN ADDITION TO HIS 50000 CONSULTING FEE HE'S PAID FOR THREE OR FOUR POLLS FOR THE WHITE HOUSE RUNNING FROM 10000 TO 40000 APIECE AND MAYBE THREE OR FOUR FOCUS GROUPS WHICH APPEAR TO VARY FROM 3000 TO 5000 MR GREENBERG ALSO DOES SOME POLLING FOR THE PARTY ITSELF MORE OF IT THIS YEAR THAN LAST BUT NEITHER HE NOR THE PARTY WILL GIVE A BREAKDOWN HE ALSO POLLS FOR A HANDFUL OF OLD CLIENTS PREDATING HIS INVOLVEMENT WITH MR CLINTON THEY INCLUDE SEN JOSEPH LIEBERMAN OF CONNECTICUT AND REP BOB CARR OF MICHIGAN WHO IS RUNNING FOR THE SENATE HE ALSO MAINTAINS A LONGTIME COMMITMENT AS AN ADVISER TO NELSON MANDELA AND HIS AFRICAN NATIONAL CONGRESS HEAVY STRATEGIC POLLING FOR INCUMBENT PRESIDENTS IS A FAIRLY RECENT PHENOMENON GOING BACK NOT MUCH FURTHER THAN PATRICK CADDELL WHO SERVED AS JIMMY CARTER'S WHITE HOUSE POLLSTER IT WAS MR CADDELL WHO CONVINCED MR CARTER THE NATION WAS GOING THROUGH SOME KIND OF MALAISE THOUGH MR CARTER NEVER ACTUALLY USED THAT WORD HIMSELF MOST VOTERS IT TURNED OUT DIDN'T CARE TO BE TOLD THEY WERE TO BLAME FOR THE COUNTRY'S ILLS THE REPUBLICAN PARTY PAID POLLSTER RICHARD WIRTHLIN AS MUCH AS 1 MILLION IN AT LEAST ONE OF THE YEARS IN WHICH RONALD REAGAN WAS PRESIDENT MR WIRTHLIN MET WITH THE PRESIDENT IRREGULARLY TO TALK ABOUT HIS POLL RESULTS BUT MR REAGAN WAS NEVER AS INTERESTED IN POLLING DATA AS THE MAN IN THE WHITE HOUSE NOW MR GREENBERG'S POLL RESULTS AND FOCUSGROUP FINDINGS ARE CLOSELY HELD THAT'S NOTHING NEW PRESIDENTIAL POLLS HAVE NEVER BEEN MADE PUBLIC NOT ONE OF THEM HAS EVER FOUND ITS WAY INTO THE ROPER CENTER FOR PUBLIC OPINION ARCHIVES AT THE UNIVERSITY OF CONNECTICUT THE REPOSITORY FOR POLLING DATA EVEN THOUGH THE CENTER HAS TRIED FROM TIME TO TIME TO COLLECT SOME OF THE MATERIAL CELINDA LAKE WHO WAS MR GREENBERG'S PARTNER DURING THE ELECTION LAST YEAR SAYS THERE'S NO REASON FOR PRESIDENTIAL POLLS TO COVER THE SAME GROUND AS THE PUBLIC POLLS SPONSORED BY SEVERAL NEWSPAPERS AND TV NETWORKS SO SHE SUSPECTS THAT MR GREENBERG'S POLLS TRY TO ANTICIPATE HOW THE VOTERS MIGHT REACT TO A POLICY INITIATIVE WHAT WOULD VOTERS SAY FOR EXAMPLE IF US TROOPS WERE SENT TO BOSNIA THEY KNOW WHAT THEY'RE THINKING OF DOING SAYS MS LAKE WHO PARTED WITH MR GREENBERG REGRETFULLY AND NOW WORKS WITH DEMOCRATIC POLLSTERS MARK MELLMAN AND ED LAZARUS WE DON'T WE CAN ONLY MEASURE PUBLIC OPINION ON WHETHER IT WAS A GOOD OR A BAD IDEA AFTER IT'S HAPPENED THEY DO TEST THINGS PROSPECTIVELY SAYS ROBERT BLENDON WHO TRACKS PUBLIC OPINION ON HEALTHCARE ISSUES AT THE HARVARD UNIVERSITY SCHOOL OF PUBLIC HEALTH MAYBE THEY'LL MEASURE SOMETHING THEY'RE THINKING ABOUT WITH THE PRESIDENT'S NAME ON IT MAYBE THEY'LL TRY IT WITHOUT THE PRESIDENT'S NAME THEN THEY'LL GO TO THE FOCUS GROUPS TO GET MORE COMPLEX RESPONSES MS LAKE ALONG WITH MANY OF HER DEMOCRATIC COLLEAGUES WISHES MR GREENBERG THE WHITE HOUSE AND THE DEMOCRATIC NATIONAL COMMITTEE WOULD BE MORE GENEROUS IN SHARING THEIR DATA THERE'S A LOT OF WHAT THEY DO THAT WOULD BE VERY HELPFUL SHE SAYS BUT SURELY SOME OF THE DATA IS TOO PERSONAL TO BE SHARED GOP POLLSTER LUNTZ SAYS I CAN PROMISE YOU GREENBERG IS DOING SERIOUS POLLING RIGHT NOW INTO WHAT PEOPLE THINK ABOUT HILLARY CLINTON THEY'RE NOT LIKELY TO GIVE MANY PEOPLE THOSE RESULTS 9403230140 940323 SKANDIA SIGNS PACT WITH FIRM STOCKHOLM SWEDEN'S FOERSAEKRINGS AB SKANDIA SAID IT SIGNED A COOPERATION AGREEMENT WITH ROYAL INSURANCE GLOBAL A UNIT OF ROYAL INSURANCE PLC OF THE UNITED KINGDOM UNDER THE TERMS OF THE PACT ROYAL GLOBAL WILL PROVIDE INSURANCE SERVICE FOR SKANDIA'S NORDIC INDUSTRIAL CLIENTS IN JAPAN SINGAPORE HONG KONG THE PHILIPPINES SPAIN PORTUGAL AND IRELAND WHILE SKANDIA WILL GIVE RECIPROCAL SERVICE FOR ROYAL GLOBAL CLIENTS IN SWEDEN NORWAY AND ICELAND THE SWEDISH GROUP SAID 9403230139 940323 WHO'S NEWS FURON CO FURON CO LAGUNA NIGUEL CALIF BRUCE E RANCK WAS ELECTED A DIRECTOR INCREASING THE BOARD TO 10 MR RANCK 45 YEARS OLD IS PRESIDENT AND CHIEF OPERATING OFFICER OF BROWNINGFERRIS INDUSTRIES INC FURON IS A DIVERSIFIED MAKER OF INDUSTRIAL PRODUCTS 9403230138 940323 FINANCING BUSINESS ABITIBIPRICE INC ABITIBIPRICE INC TORONTO SAID IT WILL ISSUE 10 MILLION COMMON SHARES AT 1735 CANADIAN DOLLARS US1271 EACH THE UNDERWRITING SYNDICATE IS LED BY NESBITT THOMSON INC THE FORESTPRODUCTS COMPANY SAID IT WILL USE THE PROCEEDS FOR CAPITAL PROJECTS TO REPAY LONGTERM DEBT AND FOR GENERAL CORPORATE PURPOSES THE ANNOUNCEMENT CAME AFTER THE CLOSE OF TRADING IN NEW YORK AND TORONTO IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ABITIBIPRICE CLOSED AT 13375 UNCHANGED 9403230137 940323 TEXAS JOURNAL COMMISSIONERS' FEUD ENGULFS COAST PLAN BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNA A FIGHT OVER TEXAS' BEACHES IS KICKING UP SAND IN THE STATE CAPITAL THE SCUFFLE WHICH COULD HAVE SIGNIFICANT ENVIRONMENTAL AND ECONOMIC IMPACT PITS TEXAS AGRICULTURE COMMISSIONER RICK PERRY AGAINST LAND COMMISSIONER GARRY MAURO FORMER TEXAS A&M SCHOOLMATES AND TWO OF THE STATE'S HIGHESTPROFILE POLITICIANS AT ISSUE IS THE PROPOSED COASTAL MANAGEMENT PLAN A PET PROJECT OF MR MAURO THAT OFFERS A BLUEPRINT FOR THE USE AND OVERSIGHT OF 370 MILES OF GULF COASTLINE THE PLAN APPROVED IN CONCEPT DURING THE 1991 TEXAS LEGISLATIVE SESSION APPEARED UNTIL RECENTLY TO BE QUIETLY ON ITS WAY TO FINAL APPROVAL THE ONLY REMAINING HURDLE WAS A HALFDOZEN PUBLIC HEARINGS NOW THOUGH THE PLAN MAY STILL BE ADOPTED ITS PATH WON'T BE SO QUIET WHILE GROUPS REPRESENTING ENVIRONMENTALISTS AND MANY COASTAL RESIDENTS SUPPORT THE PLAN SOME LANDOWNERS AND FARMERS ALONG THE COAST SAY THEY FEAR IT WILL STRANGLE DEVELOPMENT AND INTERFERE WITH WATER AND PESTICIDE USE COUNTY AND CITY LEADERS SAY MR MAURO'S COASTAL COORDINATION COUNCIL WHICH DREW UP THE PLAN HAS OVERSTEPPED ITS BOUNDS LEADING THE FIGHT IS MR PERRY ONCE A DEMOCRAT LIKE MR MAURO NOW A REPUBLICAN WHO CLAIMS THE PLAN WOULD CREATE A SUPERBUREAUCRACY THAT WOULD THREATEN PRIVATEPROPERTY RIGHTS LAST SPRING GOV ANN RICHARDS WITH MR MAURO'S SUPPORT VETOED LEGISLATION THAT WOULD HAVE PUT MR PERRY ON THE BEACHPLANNING PANEL MR PERRY NOW HAS ASKED THE STATE ATTORNEY GENERAL FOR A RULING ON QUESTIONS ABOUT HOW MUCH POWER MR MAURO'S COUNCIL HAS THE TWO MEN WHO WORK IN THE SAME BUILDING HAVE EXCHANGED IMPERSONAL SOMETIMES CAUSTIC LETTERS ABOUT THE PLAN I KNOW THERE'S A RIFT OVER THIS ISSUE A VERY STRONG RIFT SAYS REPUBLICAN POLITICAL CONSULTANT KARL ROVE THERE WAS A DELIBERATE EFFORT ON MAURO'S PART TO CUT RICK PERRY OUT OF THIS COMMISSION ADDS GEORGE SHIPLEY A DEMOCRATIC POLITICAL CONSULTANT GARRY PERCEIVES PERRY AS SOMEONE WHO IS ACTING UNCONSCIONABLY SOMEONE WHO IS WILLING TO TRIFLE WITH THE DEGRADATION OF TEXAS BEACHES THE RIVALRY HAS SERVED TO FRAME THE DEBATE ABOUT THE FUTURE OF TEXAS BEACHES WHICH THE LAND OFFICE ESTIMATES ARE ERODING AT A RATE OF ABOUT 50 FEET A YEAR IN 1991 THE TEXAS LEGISLATURE APPROVED A SWEEPING COASTALMANAGEMENT BILL GIVING THE LAND OFFICE POWER TO CURTAIL EROSION GUARANTEE PUBLIC ACCESS TO BEACHES AND PROTECT DUNES THE LEGISLATION ALSO CREATED THE COASTAL COORDINATION COUNCIL TO DEVELOP AND ENFORCE A PLAN WHAT DOES THE COUNCIL'S PLAN DO FOR STARTERS SUPPORTERS SAY IT TRIES TO RESOLVE CONFLICTING RULES ADMINISTERED BY STATE AGENCIES IN ONE EXAMPLE STATE LAW REQUIRES CORPUS CHRISTI TO RELEASE FRESHWATER INTO ITS BAY TO REDUCE SALT LEVELS BUT THE TEXAS RAILROAD COMMISSION HAS AUTHORIZED OIL COMPANIES TO DISCHARGE HIGHLY SALINE WASTEWATER INTO THE SAME BAY THE PLAN ALSO GIVES THE STATE NEW AUTHORITY TO OVERRULE LOCAL DECISIONS WHERE IN THE PAST IT HAD TO RESOLVE ISSUES IN COURT FOR INSTANCE IF SOUTH PADRE ISLAND ISSUES A PERMIT ALLOWING A DEVELOPER TO BUILD A RETAINING WALL THE COUNCIL CAN REVERSE THE DECISION IF IT DETERMINES THE STRUCTURE COULD DAMAGE DUNES MR MAURO SAYS THE COUNCIL WON'T ESTABLISH ANY NEW LAWS BUT WILL MERELY COORDINATE EXISTING AGENCY RULES I THINK WE'RE GOING TO END UP ELIMINATING RED TAPE END UP ELIMINATING THE DELAYS AND CONFUSION ALL THESE MYRIAD AGENCIES HAVE CREATED BY NOT WORKING TOGETHER HE SAYS MOREOVER MR MAURO ARGUES THE COASTAL COUNCIL HAS ADDRESSED MR PERRY'S SPECIFIC OBJECTIONS THE COUNCIL NOW EVEN REFERS TO ONE SECTION OF THE PLAN AS THE PERRY AMENDMENT HE SAYS AS FOR THE AGRICULTURE COMMISSIONER'S CONTINUING OPPOSITION MR MAURO SAYS ONE MIGHT THINK POLITICS HAD SOMETHING TO DO WITH IT I AM NOT GOING TO POLITICIZE THIS BUT THE PLAN HAS SOME COASTAL RESIDENTS WORRIED THEY SAY THE UNCERTAINTY ALREADY HAS HURT THEIR BUSINESS WHEN PEOPLE COME IN HERE TO TALK ABOUT DEVELOPING AND BUYING LAND THE STREET TALK IS YOU CAN'T DO ANYTHING BECAUSE THE PLAN IS SO RESTRICTIVE SAYS JACK PONTON OWNER OF COLDWELL BANKER ISLAND REALTORS IN PORT ARANSAS ENTER MR PERRY WHO THIS MONTH HELD A NEWS CONFERENCE ATTACKING THE PLAN THERE'S THIS LITTLE GNAWING SUSPICION IN MY MIND THAT GARRY'S LOOKING AT COASTAL RESIDENTS SMILING AND SAYING TRUST ME' MR PERRY SAYS HIS CONCERNS ARE SHARED BY RAILROAD COMMISSION MEMBER BARRY WILLIAMSON A FELLOW REPUBLICAN WHO SITS ON THE COASTAL COUNCIL MR WILLIAMSON SAYS HE TOO BELIEVES THE PLAN'S REACH IS TOO BROAD THOUGH IT IS UNLIKELY MR PERRY WILL BE ABLE TO DERAIL THE PLAN HIS OPPOSITION COULD AID MR WILLIAMSON'S EFFORT TO SLOW IT DOWN OR AT LEAST WIN MORE CHANGES AFTERWARD WILL THERE BE HARD FEELINGS IF RICK'S DEALING IN GOOD FAITH WE'LL BE ABLE TO COME UP WITH A PLAN THAT WILL SATISFY HIS CONCERNS MR MAURO SAYS WE TALK ALL THE TIME MR PERRY SAYS I'M NOT GOING TO GO DOWN THERE AND HIT HIM ON THE KNEE WITH A CLUB OR ANYTHING 9403230136 940323 NORTH SEA CRUDE OUTPUT RISES SHARPLY FROM 93 POSING KEY PROBLEM FOR OPEC BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL NORTH SEA CRUDEOIL PRODUCTION HAS JUMPED ALMOST 25 FROM A YEAR AGO AN INCREASE THAT IS A MAJOR HEADACHE FOR THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WHICH MEETS FRIDAY IN GENEVA SEVERAL NEW OIL PROJECTS HAVE COMBINED WITH TECHNOLOGICAL ADVANCES TO BOOST NORTH SEA CRUDEOIL OUTPUT TO 51 MILLION BARRELS A DAY INDUSTRY EXPERTS SAY ONE MILLION BARRELS MORE THAN THE 1993 FIRST QUARTER'S DAILY RATE IT'S A SPECTACULAR AMOUNT OF OIL TO COME ONTO MARKETS ALL AT ONE TIME SAID LAWRENCE GOLDSTEIN PRESIDENT OF THE PETROLEUM INDUSTRY RESEARCH FOUNDATION IN NEW YORK IT'S CERTAINLY MORE SUPPLY THAN OPEC WOULD LIKE TO SEE AND THE GROWTH IN PRODUCTION WON'T COME TO AN END UNTIL OCTOBER WHEN NORTH SEA OUTPUT WILL PEAK AT A RECORD 55 MILLION BARRELS A DAY ACCORDING TO MARI BUGLASS A NORTH SEA EXPERT WITH SMITH BARNEY SHEARSON LTD IN LONDON MAINTENANCE EFFORTS WHICH NECESSITATE CLOSING PRODUCTION PLATFORMS ON A ROTATING BASIS WILL MASK SOME OF THOSE INCREASES THROUGH THE SUMMER EXPERTS BELIEVE THAT INCLUDING SCHEDULED AND UNSCHEDULED CLOSINGS AVERAGE NORTH SEA OUTPUT FOR 1994 SHOULD JUMP BY ALMOST 18 OR 700000 BARRELS A DAY OVER 1993 NORTH SEA PRODUCTION PEAKED AT 372 MILLION BARRELS A DAY IN 1987 THEN SLID TO A LOW OF 355 MILLION BARRELS DAILY IN 1989 ACCORDING TO WOOD MACKENZIE CONSULTANTS LTD A GROUP BASED IN EDINBURGH SCOTLAND OUTPUT WAS EXPECTED TO CONTINUE TO DECLINE AND INDEED MAJOR FIELDS THERE ARE MATURE AND OUTPUT WILL ULTIMATELY WANE BUT IMPROVEMENTS IN TECHNOLOGY SPECIFICALLY NEW OCEANFLOOR PUMPING TECHNIQUES ARE EXTENDING THE LIFE OF SOME EXISTING FIELDS AND MAKING THE COMMERCIALIZATION OF SMALLER SATELLITE FIELDS VIABLE AND HIGHER OIL PRICES JUST A FEW YEARS AGO SPARKED PLANS TO START NEW DEVELOPMENT INDEED OUTPUT BEGAN RISING SLOWLY IN 1990 THEN A NUMBER OF NEW FIELDS CAME ON LINE AHEAD OF SCHEDULE CAUSING THE RECENT SUDDEN GUSH OF OIL FROM THAT SECTOR ALTHOUGH ANOTHER SWELL OF NORTH SEA PRODUCTION IS UNLIKELY AFTER THIS ONE OUTPUT SHOULD REMAIN AT THE NEW HIGHER LEVEL FOR A PERIOD OF YEARS PLANS BY LONDONBASED BRITISH PETROLEUM CO TO KICK UP DEVELOPMENT EFFORTS IN A PREVIOUSLY UNWORKED AREA OF THE NORTH SEA WEST OF THE SHETLAND ISLANDS COULD HELP TO KEEP OUTPUT HIGH AS WELL THE UNEXPECTED FLOOD OF OIL FROM THE NORTH SEA HAS BEEN PARTICULARLY IRKSOME TO OPEC ENTREATIES BY THE GROUP'S OIL MINISTERS TO ALL NONOPEC PRODUCERS BUT ESPECIALLY TO NORTH SEA OPERATORS TO SLOW THEIR OUTPUT GROWTH HAVE BEEN UNSUCCESSFUL AND ALTHOUGH THERE ARE MANY ISSUES FACING THE FRACTIOUS ORGANIZATION AT ITS MEETING IN GENEVA THE ADDITIONAL SUPPLIES OF NORTH SEA CRUDE WILL MAKE DELIBERATIONS OVER WHETHER TO REDUCE THE GROUP'S PRODUCTION CEILING OF 245 MILLION BARRELS A DAY EVEN MORE DIFFICULT INDUSTRY EXPERTS SUCH AS ASHLAND OIL INC'S CHIEF ECONOMIST CYRUS TAHMASSEBI SAY OPEC NEEDS TO CUT PRODUCTION BY AT LEAST ONE MILLION BARRELS DAILY THE SAME AMOUNT AS THE NORTH SEA SURGE IN ORDER TO BOOST CRUDEOIL PRICES BEYOND 16 A BARREL FROM RECENT 14 LEVELS ADDS PETER GIGNOUX HEAD OF SMITH BARNEY'S PETROLEUM DESK IN LONDON NORTH SEA PRODUCTION HAS BEEN ONE OF THE KEY COMPONENTS KEEPING OIL PRICES DOWN OPEC MEANWHILE BELIEVES CUTTING ITS PRODUCTION WOULD BE A MISTAKE SPECIFICALLY BECAUSE OF GROWING NONOPEC OUTPUT MEMBERS OF THAT GROUP ESPECIALLY THE BIGGEST PRODUCER SAUDI ARABIA DON'T WANT TO CEDE MARKET SHARE TO OTHER PRODUCERS AND SEEM INCLINED TO SUFFER LOWER PRICES IN ORDER TO HOLD ON TO A LARGER SLICE OF THE PIE OPEC PROGNOSTICATORS ARE COUNTING ON INCREASING OIL DEMAND TO EVENTUALLY REMEDY LOWER PRICES THE BULK OF THE NEW FIELDS CAME ON LATE IN 1993 AND MOSTLY IN THE UNITED KINGDOM PORTION OF THE NORTH SEA AL STANTON OF WOOD MACKENZIE CONSULTANTS SAYS 15 OF THE 22 NEW FIELDS ARE LOCATED IN UK TERRITORY UK NORTH SEA OUTPUT IS EXPECTED TO INCREASE 256 THIS YEAR TO AVERAGE 25 MILLION BARRELS A DAY 9403230135 940323 FIRM FIVE EXECUTIVES TIED TO SPECTRUM ARE CHARGED WITH DEFRAUDING CLIENTS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SPECTRUM INFORMATION TECHNOLOGIES INC'S TROUBLES WIDENED WITH THE ARRESTS OF FIVE EXECUTIVES OF A FINANCIALSERVICES FIRM WITH CLOSE TIES TO SPECTRUM AND ITS PRESIDENT PETER CASERTA THE EXECUTIVES OF PARADIGM GROUP INC FORMERLY CASERTA GROUP INC WERE ARRESTED IN A MORNING RAID YESTERDAY BY FEDERAL POSTAL INSPECTORS PARADIGM GROUP AND THE EXECUTIVES WERE LATER CHARGED IN FEDERAL COURT IN BROOKLYN NY WITH WIRE AND MAIL FRAUD NO CHARGES WERE FILED AGAINST MR CASERTA PEOPLE CLOSE TO THE INVESTIGATION AND TO THE US ATTORNEY'S OFFICE IN BROOKLYN SAID THE INVESTIGATION IS CONTINUING IT ISN'T OVER SAID WILLIAM MULLER EXECUTIVE ASSISTANT TO THE US ATTORNEY FOR THE EASTERN DISTRICT YESTERDAY'S COMPLAINT ALLEGES THAT THE PARADIGM EXECUTIVES RAN A BOILERROOM OPERATION DESIGNED TO KNOWINGLY AND UNLAWFULLY DEFRAUD SMALL AND MEDIUMSIZE HIGHTECH COMPANIES OUT OF FEES FOR FINANCIAL SERVICES THAT WERE NEVER DELIVERED THE COMPLAINT ESTIMATES THAT THE OPERATION TOOK IN AS MUCH AS 17 MILLION A YEAR THE ALLEGED FINANCIAL SCAM WOULD SEEM ROUTINE IF IT WEREN'T FOR PARADIGM'S PEDIGREE MR CASERTA WAS PRESIDENT AND OWNER OF CASERTA GROUP UNTIL JANUARY WHEN HE SOLD IT TO HIS SONINLAW JOHN BOHRMAN WHO WAS ONE OF THE EXECUTIVES CHARGED MR BOHRMAN BECAME PRESIDENT AND RENAMED THE COMPANY PARADIGM MR CASERTA LAST OCTOBER LURED FORMER APPLE COMPUTER INC CHAIRMAN JOHN SCULLEY TO JOIN SPECTRUM A SMALL WIRELESS COMPANY AS CHAIRMAN BUT MR SCULLEY QUIT THE COMPANY LAST MONTH IN AN ACRIMONIOUS DISPUTE WITH MR CASERTA THAT ESCALATED INTO A LEGAL BATTLE WHICH WAS RECENTLY SETTLED IN ADDITION TO MR BOHRMAN THE EXECUTIVES CHARGED YESTERDAY WERE HOWARD SCHOR JOHN SCHIAVO JOHN SCHOONMAKER AND VINCENT MUIA MR BOHRMAN A FORMER SPECTRUM DIRECTOR IS MARRIED TO MR CASERTA'S DAUGHTER DIANA WHO IS VICE PRESIDENT OF TECHNOLOGY FOR SPECTRUM MR SCHOR ALSO IS A VICE PRESIDENT OF SPECTRUM WHERE HIS JOB IS TO SIGN UP LICENSEES FOR THE COMPANY'S WIRELESS DATA TECHNOLOGY SPECTRUM WHICH IS UNDER A SECURITIES AND EXCHANGE COMMISSION PROBE FOR ALLEGED STOCK HYPING HAD NO COMMENT ON YESTERDAY'S ARRESTS EXCEPT TO NOTE THAT NO SENIOR SPECTRUM OFFICER HAS BEEN ARRESTED AND THAT IT INTENDS TO COOPERATE WITH THE GOVERNMENT IN ITS INVESTIGATION BUT THE PROBE COULD GET PRICKLY FOR SPECTRUM MR CASERTA IS MENTIONED PROMINENTLY IN THE FEDERAL COMPLAINT AND YESTERDAY WILLIAM CALLAHAN A FORMER FEDERAL PROSECUTOR CONFIRMED THAT HE HAS BEEN RETAINED BY NUMEROUS DISGRUNTLED FORMER CLIENTS OF CASERTA GROUP/PARADIGM THE COMPLAINT NAMES SEVERAL VICTIM COMPANIES AND DESCRIBES IN DETAIL HOW THESE CLIENTS WERE ALLEGEDLY DUPED BY EXECUTIVES OF CASERTA GROUP/PARADIGM INTO PAYING STEEP UPFRONT FEES IN RETURN FOR INVESTMENT BANKING HELP THAT NEVER CAME WHEN THE CLIENTS TRIED TO OBTAIN ANSWERS FROM CASERTA GROUP/PARADIGM EXECUTIVES THE COMPLAINT STATES CALLS WEREN'T RETURNED THE EXPERIENCE OF ONE COMPANY LOUISIANA TANNERY INC OF BATON ROUGE LA WAS TYPICAL OWNER RICHARD SCHAFFERT APPROACHED CASERTA GROUP IN LATE 1990 FOR HELP IN RAISING CAPITAL TO EXPAND THE COMPANY'S BUSINESS AFTER SIGNING AN ENGAGEMENT AGREEMENT MR SCHAFFERT PERSONALLY HANDED PETER CASERTA A 30000 CHECK THE COMPLAINT NOTES MR CASERTA REPRESENTED THAT HE WOULD BE INTERESTED IN INVESTING IN MR SCHAFFERT'S COMPANY PERSONALLY AND THAT HE KNEW OF OTHERS WHO WOULD CONSIDER MAKING AN INVESTMENT INCLUDING EDWARD MASKALY OF JASMINE SHOES ACCORDING TO THE COMPLAINT BUT OVER THE NEXT FEW MONTHS AFTER SUBMITTING TO NUMEROUS REQUESTS FROM CASERTA GROUP FOR FINANCIAL AND MANAGEMENT INFORMATION MR SCHAFFERT'S NUMEROUS CALLS TO MR CASERTA AND HIS COMPANY WEREN'T RETURNED THE COMPLAINT SAYS IN APRIL 1991 MR SCHAFFERT WAS INFORMED IN WRITING FROM MR CASERTA THAT CASERTA GROUP AND JASMINE SHOES WERE NO LONGER INTERESTED IN MR SCHAFFERT'S COMPANY THE UPFRONT FEE WAS NEVER RETURNED ACCORDING TO THE COMPLAINT MR MASKALY MOST RECENTLY THE CHIEF FINANCIAL OFFICER OF JASMINE YESTERDAY BECAME YET ANOTHER PARTICIPANT IN SPECTRUM'S MANAGEMENT MERRYGOROUND HE WAS NAMED SPECTRUM'S NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER REPLACING MR CASERTA WHO HAD BEEN ACTING CHAIRMAN SINCE MR SCULLEY QUIT PARADIGM AND SPECTRUM SHARE THE SAME HEADQUARTERS BUILDING IN MANHASSET NY A PARADIGM INSIDER YESTERDAY SAID PANIC SPREAD THROUGH THE BUILDING WHEN FEDERAL AGENTS RAIDED THE SUBURBAN OFFICE BUILDING ON LONG ISLAND'S GOLD COAST 9403230134 940323 INTERNATIONAL CREDIT AGRICOLE FORMS VENTURE WITH LAZARD TO OFFER DERIVATIVES LONDON CREDIT AGRICOLE OF FRANCE AND LAZARD FRERES INVESTMENT BANKING GROUP ANNOUNCED THE CREATION OF A JOINT DERIVATIVES SUBSIDIARY THAT WILL OFFER CLIENTS SOPHISTICATED FINANCIAL SERVICES USING A VARIETY OF RISKMANAGEMENT AND FUNDING TECHNIQUES IN A COMMUNIQUE THE TWO PARTNERS SAID THE NEW COMPANY CREDIT AGRICOLELAZARD FINANCIAL PRODUCTS LTD WILL SPECIALIZE IN SERVING LARGE INTERNATIONAL CORPORATIONS AND FINANCIAL INSTITUTIONS BASED IN LONDON THE JOINT VENTURE WILL BE 75OWNED BY CAISSE NATIONALE DU CREDIT AGRICOLE THE CENTRAL HOLDING COMPANY FOR THE FRENCH COOPERATIVEBANKING ORGANIZATION THE REMAINING 25 WILL BE SHARED OUT BETWEEN THE THREE LAZARD HOUSES OF LONDON NEW YORK AND PARIS MEMBERSHIP OF THE NEW VENTURE'S BOARD WILL BE DIVIDED EQUALLY BETWEEN REPRESENTATIVES OF THE TWO PARTNERS CREDIT AGRICOLE ONE OF EUROPE'S LARGEST BANKS HAS LAUNCHED A DRIVE TO DEVELOP ITS CORPORATEBANKING ACTIVITIES THE PARTNERSHIP IS DESIGNED TO COMBINE ITS FINANCIAL STRENGTH WITH THE INGENUITY AND ACCESS TO MAJOR INTERNATIONAL CLIENTS OF THE LAZARD GROUP OF BANKS THIS AGREEMENT MARKS THE WILLINGNESS OF THE TWO ORGANIZATIONS TO CAPITALIZE FULLY ON THEIR COMPLEMENTARY ABILITIES THE TWO PARTNERS SAID IN A STATEMENT IN ORDER TO GAIN A SIGNIFICANT POSITION IN THE GROWING MARKET OF STRUCTURED FINANCE 9403230133 940323 DUPONT MERCK GENERIC DIVISION WILMINGTON DEL DUPONT MERCK PHARMACEUTICAL CO SAID IT HAS FORMED A GENERICDRUG UNIT ENDO LABORATORIES LLC THE COMPANY A JOINT VENTURE BETWEEN DUPONT CO AND MERCK & CO IS THE LATEST EXAMPLE OF BRANDED PHARMACEUTICAL DRUG COMPANIES PAYING MORE ATTENTION TO GENERIC DRUGS THE UNIT WILL DEVELOP NEW GENERIC DRUG PRODUCTS AND ACQUIRE THE MARKETING RIGHTS OF CERTAIN GENERIC PRODUCTS CURRENTLY SOLD BY DUPONT MERCK 9403230132 940323 TEXAS JOURNAL TEXAS LEGALIZATION OF RIVERBOAT GAMBLING MAY NOT BE SUCH AN EASY BET AFTER ALL BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL CASINO OPERATORS ARE RUSHING TO TEXAS IN ANTICIPATION OF LEGALIZED RIVERBOAT GAMBLING BUT A LEGAL OPINION EXPECTED FROM ATTORNEY GENERAL DAN MORALES IN THE NEXT FEW WEEKS COULD MAKE THEIR INVESTMENTS LOOK LIKE A SUCKER'S BET PEOPLE ON BOTH SIDES OF THE ISSUE BELIEVE THERE'S A GOOD CHANCE THAT MR MORALES WILL RULE THAT THE LEGISLATURE DOESN'T HAVE THE LEGAL AUTHORITY TO ALLOW RIVERBOAT AND DOCKSIDE CASINOS TO OPERATE IN THE STATE RATHER HE MAY SAY THE TEXAS CONSTITUTION MUST BE AMENDED BEFORE SUCH GAMBLING IS ALLOWED IN A MEMO TO OTHER GAMING COMPANIES MICHAEL ROSE CHAIRMAN AND CHIEF EXECUTIVE OF PROMUS COS THE MEMPHIS TENN COMPANY THAT OWNS HARRAH'S CASINOS AND HAS AN OPTION TO BUY A HOUSTONAREA MARINA WRITES THAT SOURCES WE CONSIDER EXTREMELY RELIABLE PREDICT THAT MR MORALES WILL SOON FIND THAT A CONSTITUTIONAL AMENDMENT IS NEEDED SUCH A RULING WOULD RAISE A BIG OBSTACLE FOR THOSE WHO WANT TO BRING GAMBLING TO THE STATE THOUGH HOW BIG AN OBSTACLE IS DISPUTED I THINK IT'S GOING TO MAKE OUR JOB HARDER BUT I DON'T THINK IT MEANS WE CAN'T CARRY THE DAY SAYS KENT CAPERTON A FORMER STATE SENATOR WHO HAS BEEN HIRED BY STATION CASINOS INC OF LAS VEGAS TO LOBBY FOR GAMING BUT OPPONENTS DISAGREE IF MR MORALES SAYS A CONSTITUTIONAL AMENDMENT IS NEEDED IT'S A BACKBREAKER SAYS ROBERT JOHNSON JR AN AUSTIN LOBBYIST WHO IS LEADING THE ANTICASINO FORCES ON BEHALF OF MUCH OF THE PARIMUTUEL RACING INDUSTRY TO BE SURE AN ATTORNEY GENERAL'S OPINION DOESN'T HAVE THE BINDING LEGAL AUTHORITY OF A COURT DECISION BUT MANY LAWMAKERS WILL BE SWAYED BY A RULING FROM THE STATE'S CHIEF LAWYER WHERE IT WOULD HAVE THE MOST IMPACT WOULD BE IN INFLUENCING LEGISLATORS SAYS DOUGLAS BECKER AN AUSTIN ATTORNEY WHO FILED A BRIEF ON BEHALF OF THE TEXAS RIVERBOAT ASSOCIATION ARGUING THAT A CONSTITUTIONAL AMENDMENT IS UNNECESSARY IF ENOUGH LEGISLATORS BELIEVE THEY HAVE TO GO THE AMENDMENT ROUTE THE BAR IS RAISED CONSIDERABLY FOR THE PROCASINO FORCES A CONSTITUTIONAL AMENDMENT REQUIRES A TWOTHIRDS MAJORITY IN THE LEGISLATURE AND APPROVAL BY A MAJORITY OF VOTERS IN CONTRAST CHANGING THE STATE'S ANTIGAMBLING STATUTES TAKES ONLY A MAJORITY OF EACH HOUSE AN UNFAVORABLE OPINION FROM MR MORALES WOULD THREATEN WHAT OTHERWISE LOOKED LIKE AN EASY BET FOR THE GAMING INDUSTRY NATIONAL CASINO COMPANIES HAVE HIRED A SLEW OF LOBBYISTS TO PRESS THEIR CASE TO THE LEGISLATURE MANY COMPANIES HAVE BEEN SO CONFIDENT OF SUCCESS THAT THEY HAVE BEEN FEVERISHLY SECURING OPTIONS TO BUY POTENTIAL CASINO LOCATIONS AND DRAWING UP GRANDIOSE PLANS THEN IN DECEMBER STATE SEN JOHN MONTFORD A LUBBOCK DEMOCRAT WHO OPPOSES CASINO GAMBLING ASKED MR MORALES WHETHER THE TEXAS CONSTITUTIONAL PROHIBITION AGAINST LOTTERIES COVERS SLOT MACHINES AND OTHER GAMES OF CHANCE IN 1991 VOTERS APPROVED A CONSTITUTIONAL AMENDMENT THAT PERMITTED LOTTERIES OPERATED BY OR ON BEHALF OF THE STATE CLEARING THE WAY FOR THE TEXAS LOTTERY THE QUESTION IS LIMITED TO SLOT MACHINES BUT IT GOES TO THE HEART OF THE ECONOMIES OF CASINO GAMING SLOTS WHICH ACCOUNT FOR UP TO THREEQUARTERS OF THE REVENUE OF SOME CASINOS ARE THE BREAD AND BUTTER OF ANY GAMING OPERATION SAYS MARC GROSSMAN A SPOKESMAN FOR HILTON HOTELS CORP LOS ANGELES CASINO OPPONENTS AND PROPONENTS HAVE FILED LEGAL BRIEFS ARGUING THEIR POSITIONS AT THE REQUEST OF GAMING ADVOCATES REP SENFRONIA THOMPSON OF HOUSTON HAS ASKED THE ATTORNEY GENERAL WHETHER THE SLOT MACHINES COULD BE AUTHORIZED WITHOUT A CONSTITUTIONAL AMENDMENT IF THEY ARE CONTROLLED AS WITH THE LOTTERY BY THE STATE THE EXPERIENCES OF OTHER STATES PROVIDE AMMUNITION FOR BOTH SIDES FOR INSTANCE LOUISIANA AND MISSISSIPPI SHARE TEXAS' CONSTITUTIONAL PROHIBITION AGAINST LOTTERIES BUT THEY LEGALIZED RIVERBOAT GAMBLING SIMPLY BY CHANGING THEIR STATUTES TO EXCLUDE FLOATING CASINOS FROM THE DEFINITION OF LOTTERY IN FLORIDA WHERE THE LEGISLATURE APPROVED CERTAIN FORMS OF BINGO THE STATE SUPREME COURT UPHELD THE ACTION BY RECOGNIZING THE LEGISLATURE'S BROAD AUTHORITY TO DEFINE CONSTITUTIONAL TERMS KENTUCKY LAST YEAR TOOK THE OPPOSITE TACK USING ARGUMENTS SIMILAR TO THOSE OF TEXAS CASINO OPPONENTS THE KENTUCKY ATTORNEY GENERAL SAID THAT RIVERBOAT GAMBLING FIT THE DEFINITION OF A LOTTERY WHICH THE CONSTITUTION PROHIBITED THE ATTORNEY GENERAL'S OPINION SAID AN AMENDMENT TO THE KENTUCKY CONSTITUTION IS REQUIRED THEN THERE'S MISSOURI VOTERS THERE IN 1992 APPROVED RIVERBOAT GAMBLING BY A WIDE MARGIN BUT THEY ONLY CHANGED STATE LAW THEY DIDN'T AMEND THE CONSTITUTION IN JANUARY THE STATE SUPREME COURT RULED THAT A CONSTITUTIONAL AMENDMENT WAS NEEDED AS WELL VOTERS RETURN TO THE POLLS APRIL 5 TO TRY AGAIN CASINO OPPONENTS ARGUE THAT DIFFERENCES IN CONSTITUTIONAL LANGUAGE AND STATE LAWS MAKE THE EXAMPLES OF LOUISIANA AND MISSISSIPPI INAPPLICABLE TO TEXAS PROPONENTS INSIST THE SAME IS TRUE FOR KENTUCKY AND MISSOURI MR MORALES DOESN'T HAVE TO RULE ON THEIR CONSTITUTIONS HE HAS TO RULE ON OURS SAYS LLOYD CRISS CHAIRMAN OF THE TEXAS RIVERBOAT ASSOCIATION MEANWHILE THE CASINO COMPANIES SAY AN UNFAVORABLE RULING WOULD CAUSE THEM TO CHANGE THEIR LOBBYING TACTICS NOT THEIR OVERALL PLANS TEXAS IS A VERY ATTRACTIVE MARKET SAYS HILTON HOTELS' MR GROSSMAN IT'S A PLACE THAT IF AND WHEN GAMING COMES WE PLAN TO BE THERE 9403230131 940323 INTERNATIONAL BRIEF AOYAMA TRADING CO FIRM AND JC PENNEY AGREE ON SELLING OF BRANDS IN JAPAN AOYAMA TRADING CO SAID IT HAS REACHED AN AGREEMENT WITH JC PENNEY CO OF THE US TO SELL THREE JC PENNEY BRANDS AT AOYAMA'S DISCOUNT MEN'S APPAREL STORES IN JAPAN THE PACT GIVES AOYAMA THE RIGHT TO SELL JC PENNEY'S HUNT CLUB ST JOHN'S BAY AND ARIZONA JEAN CO LABELS AT ITS EXISTING MEN'S SHOPS AND NEW CASUAL CLOTHING OUTLETS AOYAMA SAID THE AGREEMENT WILL HELP IT EXPAND INTO THE CASUAL CLOTHING MARKET IT HAS BEEN A PIONEER IN THE RETAILING OF LOWPRICED MEN'S SUITS IN JAPAN 9403230130 940323 IROQUOIS'S EXPRESIDENT IS FOCUS OF FBI INQUIRY AUBURN N Y IROQUOIS BANCORP INC SAID THE FEDERAL BUREAU OF INVESTIGATION CONFIRMED THAT ITS FORMER PRESIDENT ROBERT J STEIGERWALD IS THE SUBJECT OF AN INVESTIGATION MR STEIGERWALD WHO STEPPED DOWN AS PRESIDENT OF IROQUOIS AND ITS CAYUGA SAVINGS BANK SUBSIDIARY LAST NOVEMBER AT AGE 55 SAID HE WAS UNAWARE OF AN INVESTIGATION I'VE NEVER BEEN CONTACTED BY THE FBI HE SAID IN SYRACUSE NY LESTER L AMANN SUPERVISOR OF THE FBI OFFICE THERE CONFIRMED THAT AN INVESTIGATION OF MR STEIGERWALD INVOLVING HIS FORMER ROLE AT IROQUOIS IS UNDER WAY IROQUOIS MADE ITS DISCLOSURE AFTER THE CITIZEN AN AUBURN NEWSPAPER PUBLISHED AN ARTICLE ON CAYUGA IROQUOIS SAID THE REPORT PROMPTED THE COMPANY TO CONFIRM THAT AN FBI PROBE IS FOCUSED PRIMARILY ON MR STEIGERWALD IROQUOIS GAVE NO DETAILS OF THE PROBE JOSEPH P GANEY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF IROQUOIS SAYS MR STEIGERWALD THOUGH NO LONGER PRESIDENT CONTINUES TO BE PAID THROUGH THIS MONTH ON THE NASDAQ STOCK MARKET YESTERDAY IROQUOIS SHARES CLOSED AT 16 DOWN 75 CENTS OR 45 9403230129 940323 YIELDS FOR BANK CDS ROSE ACROSS THE BOARD DURING LATEST WEEK NEW YORK YIELDS ON BANK CERTIFICATES OF DEPOSIT ROSE ACROSS THE BOARD IN THE LATEST WEEK PUSHING THE POPULAR SIXMONTH SMALLDENOMINATION CD TO 3 FOR THE FIRST TIME IN A YEAR AND A HALF THE AVERAGE YIELD ON SIXMONTH SAVINGS CDS OFFERED BY MAJOR BANKS INCHED UP FROM 299 IN THE WEEK ENDED YESTERDAY ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON FIVEYEAR SMALLDENOMINATION CDS ROSE TO 472 FROM 470 CD YIELDS HAVE BEEN RISING STEADILY SINCE THE FEDERAL RESERVE MOVED TO INCREASE SHORTTERM INTEREST RATES IN EARLY FEBRUARY YESTERDAY THE FED'S POLICYMAKING FEDERAL OPEN MARKET COMMITTEE DECIDED ON A FURTHER INCREASE A MOVE THAT COULD COME AS SOON AS TODAY ON LARGEDENOMINATION JUMBO CERTIFICATES WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE BANXQUOTE SAID THE AVERAGE YIELD INCREASED IN THE LATEST WEEK TO 319 FROM 313 ON SIXMONTH CDS AND TO 510 FROM 504 ON FIVEYEAR CDS THE AVERAGE YIELD ON SIXMONTH CDS SOLD BY MAJOR BROKERAGE FIRMS REMAINED AT 346 IN THE LATEST WEEK ACCORDING TO BANXQUOTE THE AVERAGE ON FIVEYEAR BROKERSOLD CERTIFICATES OF DEPOSIT ROSE TO 493 FROM 484 THE SURVEY FOUND 9403230128 940323 LETTERS TO THE EDITOR IN MEDICAL REFORM FIRST DO NO HARM I FOUND YOUR FEB 16 CAPITAL JOURNAL ARTICLE JAY ROCKEFELLER BURNS WITH RAGE OVER HEALTH CARE PARTICULARLY REVEALING ABOUT THE SENATOR'S UNWAVERING SUPPORT FOR THE CLINTON HEALTH PLAN FIRST LET ME EXPRESS MY SINCERE CONDOLENCES TO SEN ROCKEFELLER OVER THE PAINFUL AND UNFORTUNATE DEATH OF HIS MOTHER FROM ALZHEIMER'S DISEASE AS EXPLAINED IN THE ARTICLE I LOST MY OWN MOTHER TO CANCER IN 1991 THE EXPERIENCE TEACHES THAT MEDICAL SCIENCE CAN ONLY DO SO MUCH ENACTING THE CLINTON HEALTH CARE PLAN WILL NOT CHANGE THAT REALITY FOR EITHER RICH OR POOR THE FACT THAT PEOPLE SUFFER AND DIE TRAGICALLY EVERY DAY DOES NOT MEAN THAT WE HAVE A HEALTH CARE CRISIS CAPABLE OF BEING SOLVED BY ANOTHER HUGE GOVERNMENT ENTITLEMENT PROGRAM COMPASSION IS A WONDERFUL AND NECESSARY TRAIT FOR LAWMAKERS IT IS HOWEVER RARELY A SOUND BASIS FOR MAKING LEGISLATIVE OR POLICY DECISIONS WHICH ACTUALLY WORK WHEN IT COMES TO GOVERNING WE NEED LAWS BASED ON LOGIC REASON AND COMMON SENSE WE ALSO NEED REPRESENTATIVES WHO UNDERSTAND THE LIMITS OF WHAT GOVERNMENT CAN DO OUR STATUTE BOOKS ARE LITTERED WITH WELLINTENTIONED GOVERNMENT PROGRAMS OF COMPASSIONATE LIBERAL LEGISLATORS MANY OF THESE PROGRAMS ALTHOUGH PROVIDING FULL EMPLOYMENT FOR SOCIAL SERVICE WORKERS HAVE FAILED TO ACTUALLY MAKE LIFE MATERIALLY BETTER FOR THE PEOPLE THEY WERE DESIGNED TO HELP IN SOME CASES THEY MAKE THINGS MATERIALLY WORSE ONE THING IS CLEAR FROM YOUR ARTICLE ANYONE WHO BURNS WITH RAGE OVER AN ISSUE AND DECLARES THAT THERE IS A SPECIAL PLACE IN HELL FOR A RESPONSIBLE BUSINESS LEADER WHO DARES TO PUBLICLY PREFER A LESS EXPANSIVE PROGRAM IS NEITHER EXERCISING UNCLOUDED JUDGMENT NOR ENGAGING IN RATIONAL DEBATE I HOPE COOLER HEADS PREVAIL HEALTH CARE REFORM IS A COMPLEX ISSUE ON WHICH REASONABLE MINDS MAY EASILY DIFFER IT IS ALSO AN AREA IN WHICH HUGE NEW GOVERNMENT BUREAUCRACIES ARE LIKELY TO CAUSE MORE PROBLEMS THAN THEY SOLVE THE CLINTON PLAN FOR INSTANCE WHILE PROVIDING UNIVERSAL COVERAGE MAY ALSO HAVE THE UNINTENDED SIDE EFFECT OF STIFLING THE RESEARCH NECESSARY TO EVENTUALLY EQUIP DOCTORS WITH THE NEW KNOWLEDGE AND TOOLS TO BE ABLE TO REALLY HELP PATIENTS LIKE SEN ROCKEFELLER'S OR MY MOTHER IF THAT OCCURRED IT WOULD BE A REAL TRAGEDY THOSE IN WASHINGTON DEBATING THIS ISSUE WILL DO WELL TO ADOPT THE MEDICAL OATH AS A RULE OF GOOD GOVERNMENT FIRST DO NO HARM NOTHING WILL BE LOST BY ATTEMPTING TO REFORM SUCH A CRITICALLY IMPORTANT AND COMPLICATED SYSTEM AS HEALTH CARE IN SMALL WELLREASONED AND MANAGEABLE STEPS I WAS TOUCHED BY JAY ROCKEFELLER'S EXPERIENCE AND HIS MOTHER'S DEATH FROM ALZHEIMER'S DISEASE AS A LONGTIME VOLUNTEER IN OUR LOCAL HOSPITAL EMERGENCY ROOM I CAN ATTEST TO THE DESPERATION OF THAT HEARTRENDING HELP ME HELP ME THAT CAUSED SEN ROCKEFELLER TO TAKE HIS MOTHER OUT OF THE HOSPITAL AND BACK HOME WHERE SHE DIED TWO WEEKS LATER IN RELATIVE COMFORT BUT I ALSO KNOW THAT THE HELP ME HELP ME IS USUALLY CAUSED BY A LACK OF UNDERSTANDING OF WHAT IS GOING ON RATHER THAN BY THE ACTUAL TREATMENT WHEN A TINY CHILD COMES INTO AN EMERGENCY ROOM NEEDING STITCHES IN HIS SCALP A FAIRLY COMMON OCCURRENCE THERE IS NO WAY TO MAKE HIM UNDERSTAND WHAT NEEDS TO BE DONE TO HELP HIM HE IS INSTEAD STRAPPED TO A BOARD WITH VELCRO FASTENERS TO RENDER HIM IMMOBILE SO THAT THE SURGEON CAN GIVE HIM NOVOCAIN OR WHATEVER AND THEN STITCH HIM UP AS QUICKLY AS POSSIBLE AND THE WHOLE TIME HE IS SCREAMING NOT ABOUT THE STITCHING WHICH HE CANNOT FEEL BUT ABOUT BEING STRAPPED DOWN AND TREATED IN A MANNER HE PERCEIVES AS UNACCEPTABLE AND OF COURSE EVERYONE IS TOUCHED BY THE POOR LITTLE GUY'S PLIGHT BUT THAT'S JUST THE WAY IT IS AND THE PROBLEM IS THAT HE WAS NOT ABLE TO UNDERSTAND I SUBMIT THAT AN ELDERLY WOMAN WITH ALZHEIMER'S WOULD BE EQUALLY UNABLE TO UNDERSTAND WHAT WAS BEING DONE TO HER AND WHY AND WOULD WITH SOME JUSTIFICATION FEEL AS THOUGH SHE WERE BEING TORTURED ANOTHER PATIENT WITH ALL HIS SENSIBILITIES MIGHT NOT CARE FOR THE TUBES OR THE MASK BUT WOULD UNDERSTAND THAT HE WAS ALREADY GETTING HELP AND THAT THOSE TUBES AND THE OXYGEN WERE THE VERY THINGS THAT WERE HELPING HIM HOWEVER LESSTHANIDEAL THE SITUATION AND AN OLDER CHILD WITH A SCALP WOUND IS ABLE TO HOLD VERY STILL AND DOES NOT NEED TO BE STRAPPED DOWN PERHAPS THE REAL CAUSE FOR MR ROCKEFELLER'S FIRE IS THE FACT THAT HE CAME FACE TO FACE WITH A TERRIBLY PAINFUL SITUATION THAT NO AMOUNT OF MONEY HIS OR MINE COULD REALLY IMPROVE THE PROBLEM IS CLEARLY NOT A HOSPITAL'S AGGRESSIVE TREATMENT OF PNEUMONIA BUT ALZHEIMER'S ITSELF AND ITS TRAGIC EFFECT WE PRAY THAT IN THE VERY NEAR FUTURE A CURE IS FOUND FOR THIS GROTESQUE DISABLER IN THE MEANTIME WE MUST DO EVERYTHING POSSIBLE TO ENCOURAGE RESEARCH INTO THIS AND MANY OTHER ATPRESENTINCURABLE DISEASES THE MOST HOPEFUL OF WHICH EFFORTS ARE BEING CARRIED OUT BY OUR DRUG COMPANIES ANY LEGISLATION WE ENACT TO TRY TO CURB DRUG COMPANIES' EXCESS PROFITS WILL OF NECESSITY HAVE A DIRECT EFFECT ON THE RESEARCH THEY ARE ABLE TO PLAN AND EXECUTE CAN ANYONE POSSIBLY BELIEVE THAT POLITICIANS COULD MAKE BETTER DECISIONS THAN SCIENTISTS ABOUT WHERE TO SPEND RESEARCH MONEY 9403230127 940323 MET LIFE TRAVELERS CONFIRM HOLDING TALKS ABOUT UNITS NEW YORK METROPOLITAN LIFE INSURANCE CO AND TRAVELERS INC CONFIRMED THEY WERE HOLDING TALKS ABOUT COMBINING THEIR HEALTHCARE OPERATIONS SAYING THE TALKS WERE EXPLORATORY IN NATURE THE COMBINATION WOULD CREATE ONE OF THE COUNTRY'S LARGEST HEALTH INSURANCE AND MANAGED CARE OPERATIONS MET AND TRAVELERS ALTHOUGH LARGE HEALTH INSURERS HAVE A SMALLER PRESENCE IN MANAGED CARE THAN RIVAL INSURERS PRUDENTIAL INSURANCE CO OF AMERICA CIGNA CORP AND AETNA LIFE & CASUALTY CO ANALYSTS SAY BY COMBINING THEIR HEALTHCARE BUSINESSES THEY WOULD COME CLOSER TO ACHIEVING THE CRITICAL MASS NECESSARY TO COMPETE IN MANAGED CARE A COMPANY STATEMENT SAID METROPOLITAN LIFE INSURANCE CO AND TRAVELERS INC CONFIRMED TODAY THAT THE TWO COMPANIES ARE ENGAGED IN DISCUSSIONS CONCERNING POSSIBLE ALLIANCES AMONG THEIR HEALTHCARE OPERATIONS THE COMPANIES SAID THE DISCUSSIONS WERE EXPLORATORY IN NATURE AND IT WOULD BE PREMATURE TO SPECULATE ON THE OUTCOME IF ANY 9403230126 940323 MERRILL ECONOMIST FACES ANOTHER FAX FAUX PAS APRIL MAY BE THE CRUELEST MONTH BUT BRUCE STEINBERG AN ECONOMIST AT MERRILL LYNCH & CO HASN'T FARED WELL IN MARCH OR FEBRUARY EITHER MR STEINBERG SENT FAXES TO JOURNALISTS CLIENTS AND PORTFOLIO MANAGERS ON THE MORNING OF FEB 4 ADVISING THEM THAT THE FED WOULDN'T RAISE INTEREST RATES THAT DAY LATER THAT DAY THE FED BROKE WITH TRADITION AND ANNOUNCED THAT IT WOULD IN FACT RAISE RATES MERRILL LYNCH RUSHED OUT A NEW FAX HEADLINED FED TIGHTENS POLICY YESTERDAY MR STEINBERG WAS PREPARED HE WAITED UNTIL AFTER 1130 AM WHEN THE FED USUALLY INTERVENES IN THE BOND MARKETS AND INTO THE EARLY AFTERNOON BEFORE SENDING OUT A FAX READING NO FED TIGHTENING TODAY THE FED ANNOUNCED PLANS FOR ANOTHER RATE INCREASE MERRILL SENT OUT ANOTHER FAX HEADLINED YOU GUESSED IT FED TIGHTENS YOU'RE REMINDING ME OF SOMETHING I WANT TO FORGET SAYS MR STEINBERG HE WON'T SAY HOW MANY PEOPLE RECEIVED THE TWO NO MAKE THAT FOUR FAXES PEOPLE ARE GOING TO WONDER WHY WE HAD SUCH A LARGE FAX BILL HE SAYS NEXT TIME WE'RE GOING TO WAIT UNTIL THE FEDERAL OPEN MARKET COMMITTEE MEETING IS FINISHED HE SAYS THE NEXT TIME IT WON'T BE UNEXPECTED 9403230125 940323 CANCELED GM STOCK APPARENTLY STOLEN HAS BEEN SURFACING NO SHARES HAVE BEEN CASHED DESPITE EVIDENT ATTEMPTS WARNING IS ISSUED BY SEC BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS MANY AS 13 MILLION CANCELED STOCK CERTIFICATES OF GENERAL MOTORS CORP APPARENTLY WERE STOLEN FROM A WAREHOUSE AND HAVE SURFACED IN SMALL BATCHES SINCE SEPTEMBER THE SECURITIES AND EXCHANGE COMMISSION AND FIRST CHICAGO TRUST CO A UNIT OF FIRST CHICAGO CORP THE TRANSFER AGENT FOR GM'S STOCK SAID NONE OF THE WORTHLESS CERTIFICATES HAVE BEEN SUCCESSFULLY CASHED IN OR USED AS COLLATERAL FOR LOANS DESPITE 20 APPARENT ATTEMPTS THE SEC GM AND THE TRANSFER AGENT AREN'T COMMENTING ON WHO WAS RESPONSIBLE FOR WAREHOUSING THE CANCELED CERTIFICATES NOR ARE THEY COMMENTING ON HOW THE CERTIFICATES GOT OUT OF THE WAREHOUSE AND SHOWED UP AT BANKS BROKERAGE FIRMS AND LAWYERS' OFFICES MOSTLY IN THE US THE CIRCULATION OF THE CANCELED GM CERTIFICATES IS THE FIRST ENCOUNTERED BY THE SEC SINCE MID1991 WHEN HUNDREDS OF MILLIONS OF DOLLARS IN IMPROPERLY CANCELED CORPORATE BONDS BEGAN APPEARING IN EUROPE AND THE US CAUSING ABOUT 68 MILLION IN LOSSES FOR BANKS AND OTHER INSTITUTIONS THAT ACCEPTED THEM CITIBANK A UNIT OF CITICORP WHOSE SECURITIESTRANSFER DEPARTMENT WAS TO HAVE DISPOSED OF THE BONDS SETTLED WITH THE COMPTROLLER OF THE CURRENCY AND THE SEC WITHOUT ADMITTING OR DENYING WRONGDOING FIRST CHICAGO RECEIVED ITS FIRST INQUIRY ABOUT THE CERTIFICATES LAST SEPTEMBER AND NOTIFIED THE SEC ACCORDING TO VICE PRESIDENT JOHN BAGDONAS THE SEC WARNED ITS FELLOW SECURITIES REGULATORS IN THE US AND OVERSEAS ABOUT THE CANCELED CERTIFICATES LAST MONTH SOME OF THOSE AGENCIES WARNED THE PUBLIC THE CANCELLATION IS GENERALLY EVIDENCED SOLELY BY SMALL PERFORATION HOLES IN THE LOWER RIGHT CORNER OF THE CERTIFICATES ALTHOUGH SOME OF THE STOLEN CERTIFICATES MAY NOT EVEN BEAR THE PERFORATION MARKS SEC CHAIRMAN ARTHUR LEVITT SAID IN THE LETTER ALERTING HIS FELLOW REGULATORS IN LIGHT OF THE POTENTIAL LOSSES TO FINANCIAL INSTITUTIONS AND INVESTORS IT IS CRITICAL THAT ALL SECURITIES FIRMS DEPOSITORIES AND OTHER FINANCIAL INSTITUTIONS BE ALERTED THAT SUCH SECURITIES ARE BEING CIRCULATED MR LEVITT WROTE THE SEC CHAIRMAN ALSO SAID US CRIMINAL AUTHORITIES HAVE BEGUN AN INVESTIGATION INTO THE MATTER HE ALSO WROTE THERE MAY BE SECURITIES CERTIFICATES OF OTHER ISSUERS THAT HAVE NOT YET BEEN REPORTED AS LOST OR STOLEN SEC OFFICIALS WOULDN'T ELABORATE ON EITHER STATEMENT THE 13 MILLION CANCELED GM CERTIFICATES WERE ISSUED BEFORE JAN 1 1984 ALTHOUGH SOME CERTIFICATES FROM THAT TIME ARE VALID A GM SPOKESMAN SAID THE COMPANY BELIEVES THE NUMBER OF CANCELED CERTIFICATES IN CIRCULATION IS MUCH SMALLER THAN 13 MILLION 9403230124 940323 USAIR SLATES RESUMPTION OF PRESUMMER FARE CUTS ARLINGTON VA USAIR GROUP SAID IT IS RESTARTING ITS PRESUMMER FAREREDUCTION PROGRAM THE PROGRAM REDUCES AIR FARES FOR TRAVEL BETWEEN THE EAST AND FLORIDA TO 198 ROUND TRIP AND TO 298 ROUND TRIP FOR FLIGHTS BETWEEN THE EAST AND NEW MEXICO TEXAS COLORADO MINNESOTA MISSOURI AND WISCONSIN THE NEW RATES ALSO CUT THE ROUNDTRIP FARE BETWEEN THE EAST AND WEST COAST TO 398 THE RATES APPLY TO TRAVEL BETWEEN APRIL 19 AND JUNE 15 THE OFFER RESUMES A ROUND OF FARE REDUCTIONS INITIATED MARCH 4 BY NORTHWEST AIRLINES WHICH EXPIRED MARCH 11 TICKETS UNDER THE NEW OFFER MUST BE PURCHASED BY MARCH 31 YESTERDAY MOST MAJOR AIRLINES INCLUDING CONTINENTAL AIRLINES AND AMR CORP'S AMERICAN AIRLINES MATCHED THE FARE CUTS IN COMPETING MARKETS 9403230123 940323 BIG BOARD STUDIES BROADENING OF ITS FOREIGNSTOCK DEALINGS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE AS PART OF AN EFFORT TO MAINTAIN ITS PRESTIGE IN THE GLOBAL MARKETPLACE IS CONSIDERING TRADING FOREIGN STOCKS IN DIFFERENT CURRENCIES THOUGH SUCH A STEP IF TAKEN IS SEVERAL YEARS AWAY INDUSTRY EXECUTIVES SAID THE BIG BOARD IS MULLING THE IDEA AS PART OF ITS LONGTERM BUSINESS PLAN AND HAS DISCUSSED THE CONCEPT WITH REGULATORS IN CONNECTION WITH BROADER TALKS ON ITS FUTURE THE SECURITIES AND EXCHANGE COMMISSION SAID THAT SO FAR THE BIG BOARD HASN'T MADE ANY FORMAL PROPOSAL TO THE AGENCY ABOUT TRADING NONDOLLARDENOMINATED SECURITIES BUT THE IDEA OF TRADING FOREIGN STOCKS IN DIFFERENT CURRENCIES WAS UNVEILED PUBLICLY BY RICHARD GRASSO PRESIDENT OF THE BIG BOARD AT A LUNCHEON FOR THE COOLEY'S ANEMIA FOUNDATION ON MONDAY SAYING THAT THE BIG BOARD'S OPPORTUNITIES TO EXPAND ITS DOMESTIC BUSINESS ARE LIMITED HE TOLD THE GROUP THE EXCHANGE CAN BOOST ITS BUSINESS BY ADDING FOREIGN PRODUCT AND BY CHANGING THE CURRENCIES UNDER WHICH THAT PRODUCT IS TRADED IN AN INTERVIEW AFTER THE LUNCH MR GRASSO SAID THE BIG BOARD NEEDS TO LIST MORE FOREIGN COMPANIES BEFORE IT CAN GAUGE WHETHER THERE IS DEMAND FOR TRADING FOREIGN STOCKS IN DIFFERENT CURRENCIES MY GUESS IS THAT WHEN YOU GET UPWARDS OF 400 COMPANIES LISTED ON THE EXCHANGE THERE WILL BE DEMAND MR GRASSO SAID CURRENTLY THERE ARE ABOUT 160 FOREIGN COMPANIES WHOSE STOCK OR AMERICAN DEPOSITARY RECEIPTS ARE LISTED ON THE NEW YORK EXCHANGE ADRS AS THEY'RE KNOWN REPRESENT A SHARE OR SPECIFIED NUMBER OF SHARES OF A FOREIGN STOCK BY LOOKING AT LISTING FOREIGN STOCKS IN DIFFERENT CURRENCIES THE BIG BOARD IS HOPING TO LURE MORE FOREIGN INVESTORS TO TRADE IN NEW YORK UNDER THE PLAN ENVISIONED BY THE BIG BOARD FOR EXAMPLE A JAPANESE INVESTOR WHO WANTS TO BUY SHARES OF DAIMLERBENZ AG THE GERMAN CAR COMPANY WHOSE ADRS ARE LISTED ON THE NEW YORK EXCHANGE WOULD BE ABLE TO DO SO IN JAPANESE YEN THUS REDUCING THE CURRENCYTRANSACTION COSTS INVOLVED IN THE STOCK PURCHASE SIMILARLY MANY BIG US INSTITUTIONAL INVESTORS WOULD BE ABLE TO BUY THE ORDINARY SHARES OF DAIMLERBENZ CIRCUMVENTING THE NEED TO PAY THE ALBEITMODEST ADR FEES AND PERHAPS ENABLING THEM TO BUY STOCK AT A BETTER PRICE THAN OFFERED IN THE ADR MARKET MR GRASSO IS SERIOUS ABOUT THE IDEA SAID ONE SECURITIES INDUSTRY EXECUTIVE BUT YOU HAVE NO SENSE OF THE TIMING OF IT THE BIG BOARD HAS HELD FOR YEARS THAT OFFERING INVESTORS THE ABILITY TO TRADE FOREIGN STOCKS IS THE KEY TO PREVENTING IT FROM SLIPPING EVEN FURTHER IN IMPORTANCE AMONG MAJOR EXCHANGES AROUND THE WORLD BUT SO FAR THE NEW YORK EXCHANGE HAS MADE SCANT PROGRESS TWO YEARS AGO WILLIAM DONALDSON CHAIRMAN OF THE BIG BOARD WENT HEAD TO HEAD WITH THENSEC CHAIRMAN RICHARD BREEDEN TO GET THE AGENCY TO SOFTEN STRICT US DISCLOSURE RULES SO FOREIGN COMPANIES WITH LOOSER LISTING REQUIREMENTS COULD OFFER THEIR SHARES IN THE US THE SEC HAS REFUSED TO MAKE ANY SUBSTANTIAL CONCESSIONS ON THOSE ISSUES NEVERTHELESS THE BIG BOARD SUCCEEDED LAST YEAR IN PERSUADING DAIMLERBENZ TO LIST ITS SHARES AS ADRS ON THE EXCHANGE AT THE TIME MR DONALDSON ARGUED THAT IF THE EXCHANGE DOESN'T LURE MORE FOREIGN COMPANIES THE DANGER IS THAT WE'LL BECOME A REGIONAL EXCHANGE IN A GLOBAL MARKETPLACE EXCHANGE OFFICIALS HAVE SAID THE BIG BOARD ALREADY HAS LOST CONSIDERABLE BUSINESS TO FOREIGN STOCK EXCHANGES PARTICULARLY LONDON AND HAS BEEN MAKING EFFORTS TO REPATRIATE THAT BUSINESS JUST AS THE REGIONAL EXCHANGES TAKE BUSINESS AWAY FROM NEW YORK NEW YORK CAN TAKE BUSINESS AWAY FROM THE INTERNATIONAL MARKETS SAID PETER DAPUZZO SENIOR MANAGING DIRECTOR AT CANTOR FITZGERALD A SECURITIES FIRM IN NEW YORK BUT OTHERS AREN'T SO SURE THE BIG BOARD WILL BE ABLE TO SURMOUNT ALL THE HURDLES THAT STAND BETWEEN IT AND LISTING FOREIGN STOCKS IN FOREIGN CURRENCIES RICHARD KETCHUM CHIEF OPERATING OFFICER AT THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH RUNS THE NASDAQ STOCK MARKET SAID THE NASD LIKE THE BIG BOARD IS INTERESTED IN TRADING FOREIGN STOCKS IN DIFFERENT CURRENCIES BUT AT LEAST FOR THE TIME BEING HE ADDED THE DEPOSITARY TRUST CORP THE REPOSITORY FOR STOCK CERTIFICATES DOESN'T HAVE THE CAPABILITY OF SETTLING STOCK TRANSACTIONS IN DIFFERENT CURRENCIES ALTHOUGH MR KETCHUM SAID TRADING STOCKS IN DIFFERENT CURRENCIES WOULD PROBABLY ATTRACT MORE BUSINESS TO THE US MARKETS HE DOESN'T THINK IT WILL HAPPEN AT LEAST FOR ANOTHER FEW YEARS MEANWHILE SOME MONEY MANAGERS QUESTION WHETHER THERE IS ENOUGH DEMAND AMONG INVESTORS FOR BUYING FOREIGN STOCKS ON THE BIG BOARD IN DIFFERENT CURRENCIES NICK CARN WHO MANAGES 200 MILLION AT LONDONBASED DRAYCOTT PARTNERS SAID MOST MONEY MANAGERS ARE ALREADY GEARED UP TO TRADE FOREIGN STOCKS IN DIFFERENT CURRENCIES SO WITHOUT A COMPELLING REASON THEY ARE UNLIKELY TO MOVE THEIR BUSINESS TO THE BIG BOARD I SUSPECT IT'S SOMETHING PEOPLE PROBABLY DON'T WANT SAYS MR CARN IF YOU ARE GOING TO BUY A FOREIGN SECURITY IN FOREIGN CURRENCY YOU MIGHT AS WELL GO TO THE EXCHANGE ON WHICH IT'S LISTED STILL MR CARN CONCEDED THAT IF THE NEW YORK EXCHANGE WERE TO BECOME A PLACE OF ONESTOP STOCK SHOPPING HE MAY CHANGE HIS MIND I SUPPOSE IF I COULD BUY EVERY GERMAN SECURITY ON THE NEW YORK STOCK EXCHANGE AND IT WAS CHEAPER AND MORE LIQUID I WOULD HE SAID BUT IT'S DIFFICULT TO PERSUADE SOMEONE TO DO PART OF THEIR FOREIGN BUSINESS THERE OTHER MONEY MANAGERS AGREE THAT THE BIG BOARD WILL HAVE TO OFFER A VAST REPERTOIRE OF STOCKS IF IT IS TO LURE FOREIGN MONEY MANAGERS TO TRADE IN NEW YORK IF IT WERE FIVE STOCKS OUT OF HONG KONG AND TWO STOCKS OUT OF SINGAPORE THEN FORGET ABOUT IT SAID FERMIN DA COSTA GOMEZ A PORTFOLIO MANAGER AT PACIFIC ASSET MANAGEMENT NV IN AMSTERDAM BUT MR DA COSTA GOMEZ SAID IT WOULD MAKE HIS LIFE MUCH EASIER IF THE NEW YORK EXCHANGE STARTED LISTING A BROAD ARRAY OF STOCKS IN DIFFERENT CURRENCIES AS A FUND MANAGER WE OFTEN GET A REDEMPTION OR A LOT OF MONEY IN AND I CAN'T DO ZIP BECAUSE THE ASIAN MARKETS ARE CLOSED HE SAID IF YOU CAN TRADE ASIAN STOCKS AT 3 OR 4 O'CLOCK IN OUR AFTERNOON THAT WOULD BE BLOODY CONVENIENT CHRISTI HARLAN IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9403230122 940323 DEBARTOLO FILES PLAN ON OFFERING FOR 575 MILLION BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL AFTER A REBOUND IN REALESTATE STOCKS MALL DEVELOPER EDWARD DEBARTOLO HAS DECIDED TO TRY AGAIN TO RAISE 575 MILLION BY SELLING THE PUBLIC A 48 STAKE IN HIS RETAIL EMPIRE YESTERDAY THREE MONTHS AFTER CALLING OFF ITS INITIAL PUBLIC OFFERING YOUNGSTOWN OHIOBASED DEBARTOLO REALTY CORP FILED A NEW PLAN WITH THE SECURITIES AND EXCHANGE COMMISSION TO TAP THE PUBLIC MARKET TO RAISE CAPITAL TO PAY OFF MR DEBARTOLO'S LENDERS LAST DECEMBER THE 84YEAR OLD MR DEBARTOLO WITH THE APPROVAL OF HIS LENDERS DECIDED TO HALT CREATION OF THE REALESTATE INVESTMENT TRUST AT THE 11TH HOUR WHEN IT BECAME APPARENT HE WOULD HAVE TO OFFER INVESTORS A HIGHERTHANANTICIPATED DIVIDEND YIELD AT THE TIME THE IPO MARKET WAS CLOGGED WITH COMPETING OFFERINGS INCLUDING THE 840 MILLION OFFERING OF FELLOW MALL TYCOON MELVIN SIMON WHICH SOME ANALYSTS RATED MORE ATTRACTIVE SEVERAL OTHER RETAIL OFFERINGS WERE ALSO POSTPONED BUT MR DEBARTOLO WAS STILL UNDER PRESSURE FROM HIS LENDERS TO RAISE CAPITAL IN 1992 THEY AGREED TO RESTRUCTURE MORE THAN 4 BILLION IN DEBT AFTER THE PLUNGE IN COMMERCIAL PROPERTY VALUES COUPLED WITH VARIOUS STRATEGIC ERRORS LED TO A FINANCIAL CRISIS IT HALTED THE COMPANY'S GROWTH AND PUT A CLOUD OVER THE FAMILY'S OTHER HOLDINGS WHICH INCLUDE THE SAN FRANCISCO 49ERS BUT AFTER A 06 DROP IN EQUITY REIT PRICES IN DECEMBER THE MARKET REBOUNDED 62 IN JANUARY AND FEBRUARY SHARES IN MR SIMON'S REIT HAVE TRADED UP BY ABOUT 24 AND THE MARKET IS NO LONGER AS CROWDED WITH NEW OFFERINGS SEVERAL OTHER RETAILERS WHO POSTPONED OFFERINGS IN DECEMBER HAVE ALREADY COMPLETED THEM MR DEBARTOLO HAS EVIDENTLY CONCLUDED THAT GOING PUBLIC IS PREFERABLE TO TRYING TO SELL HIS HOLDINGS PRIVATELY BECAUSE OF SEC PROHIBITIONS AGAINST DISCUSSING PENDING OFFERINGS OFFICIALS AT DEBARTOLO DECLINED TO COMMENT AS DID THOSE AT MORGAN STANLEY & CO LEAD UNDERWRITER ON THE DEAL THE NEW STRUCTURE OF THE OFFERING IS EXPECTED TO MAKE IT MORE ATTRACTIVE TO INVESTORS IN THE ORIGINAL DEAL MR DEBARTOLO WOULD HAVE RETAINED A SEPARATE OWNERSHIP STAKE IN SOME OF THE PROPERTIES THE CURRENT OFFERING INCLUDES HIS ENTIRE STAKE IN 51 MALLS AND 11 COMMUNITY CENTERS SOME REIT ANALYSTS AND INSTITUTIONAL BUYERS HAD COMPLAINED THAT BY WITHHOLDING SOME EQUITY FROM THE FIRST OFFERING MR DEBARTOLO FACED A CONFLICT OF INTEREST THE SEC FILING ALSO DISCLOSED THAT BLACKSTONE GROUP ONE OF MR DEBARTOLO'S LENDERS HAD AGREED TO CONVERT 121 MILLION OF DEBT INTO A 8 STAKE IN THE PROPERTIES AND WOULD HOLD A SEAT ON THE REIT'S BOARD IN ADDITION USING MONEY FROM ITS REALESTATE INVESTMENT FUND MORGAN STANLEY WILL BUY A 1 STAKE AND ANOTHER LENDER WILL HOLD ANOTHER 1 LEAVING THE DEBARTOLO FAMILY WITH 42 OWNERSHIP UNDER THE PREVIOUS DEAL IT WOULD HAVE HELD 48 THE FILING INDICATED THAT THE UNDERWRITERS WILL OFFER INVESTORS AN ANNUAL CASH DIVIDEND YIELD BETWEEN 8 AND 87 OF THE OFFERING PRICE 9403230121 940323 INTERNATIONAL CAMACHO SAYS HE WON'T SEEK TO LEAD MEXICO DECISION BY CHIAPAS ENVOY EASES POLITICAL JITTERS STOCK MARKET GAINS 54 BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY CHIAPAS PEACE ENVOY MANUEL CAMACHO SOLIS ANNOUNCED THAT HE HAD RULED OUT A RUN FOR THE PRESIDENCY THIS YEAR REMOVING ONE OF THE CONCERNS THAT HAS SENT MEXICO INTO CONVULSIONS STOCKS SOARED ON THE NEWS RISING 12892 POINTS OR 54 TO CLOSE AT 251193 ON THE MEXICAN STOCK EXCHANGE THE MARKET HAS TUMBLED IN RECENT WEEKS AS SPECULATION SWELLED THAT MR CAMACHO MIGHT MOUNT A MAVERICK PRESIDENTIAL BID SUCH A BID COULD HAVE DIVIDED THE RULING PARTY KNOWN AS THE PRI AND ENDANGERED THE CONTINUITY OF ECONOMIC POLICY THAT INVESTORS VALUE A RUN FOR THE PRESIDENCY BY MR CAMACHO COULD HAVE INCREASED THE VOTE COUNT FOR THE LEFTIST OPPOSITION MANY OF WHOM BELIEVE THE 1988 PRESIDENCY WAS STOLEN FROM THEM BY FRAUD BETWEEN SEARCHING FOR A CANDIDACY FOR THE PRESIDENCY OF THE REPUBLIC AND CONTRIBUTING WHAT I CAN TO THE PROCESS OF PEACE I WOULD CHOOSE PEACE MR CAMACHO SAID IN HIS ANNOUNCEMENT THE STATEMENT BY MR CAMACHO DOESN'T HOWEVER MEAN THAT CALM HAS RETURNED TO ALL OF MEXICO FOR ONE THING MR CAMACHO MADE CLEAR HE INTENDS TO REMAIN ON THE NATIONAL SCENE STIRRING THINGS UP I WILL CONTINUE PUSHING FOR THE CONSTRUCTION OF POSITIONS IN A DEMOCRATIC CENTER MR CAMACHO SAID EVEN FINANCIAL ANALYSTS WHO GREETED HIS ANNOUNCEMENT WITH GLEE AND WHO REMAIN OPTIMISTIC ABOUT MEXICO'S POLITICAL FUTURE CAUTIONED THAT HIS PRESENCE ON THE POLITICAL SCENE WILL PROBABLY PROVE UNSETTLING WE ARE GOING TO SEE AN OPENING OF THE POLITICAL SYSTEM LIKE WE HAVE NEVER SEEN BEFORE SAID ROBERT CITRONE MANAGER OF FIDELITY INVESTMENTS' NEW MARKETS INCOME FUND CONCERNS OVER THE JAN 1 REBELLION IN CHIAPAS ALSO WILL PROBABLY KEEP MEXICANS NERVOUS MR CAMACHO THE FORMER MAYOR OF MEXICO CITY NEGOTIATED A TENTATIVE 32POINT ACCORD IN RESPONSE TO 34 DEMANDS FROM THE REBEL LEADERSHIP IN EARLY MARCH BUT RECENT COMMUNIQUES FROM THE INSURGENTS INDICATE THAT THE RANK AND FILE IN THEIR JUNGLE STRONGHOLDS AREN'T HAPPY WITH THE TENTATIVE PEACE PACT'S REGIONAL RATHER THAN NATIONAL SCOPE AND THAT THEY WILL DRESS FOR WAR ONCE AGAIN IF THEIR DEMANDS AREN'T MET MR CAMACHO A 47YEAROLD PRINCETON GRADUATE HAS OPENLY CONCEDED THAT HE EXPECTED TO BE THE PRI'S PRESIDENTIAL CANDIDATE BUT HE WAS APPARENTLY EDGED OUT BY LUIS DONALDO COLOSIO WHEN PRESIDENT CARLOS SALINAS DE GORTARI MADE HIS SELECTION MR CAMACHO IMMEDIATELY RESIGNED HIS MAYORAL POST BUT IN A POLITICAL RECONCILIATION WITH PRESIDENT SALINAS ACCEPTED A POST AS MEXICO'S FOREIGN MINISTER THEN BECAME THE GOVERNMENT'S NEGOTIATOR IN CHIAPAS IN EARLY JANUARY WITH THE NATIONAL RECOGNITION THAT POST GAVE HIM MR CAMACHO HAS TRIED WITH SOME SUCCESS TO USE THE REBELS' DEMANDS TO PUSH FOR ELECTORAL REFORM THE MEXICAN CONGRESS YESTERDAY BEGAN A SPECIAL SESSION THAT MAY FINALLY LEAD TO AGREEMENTS THAT COULD CLEAN UP THE PRESIDENTIAL ELECTIONS TO BE HELD THIS AUGUST THE EVEREXPANDING PACKAGE OF PROPOSED REFORMS INCLUDES MAKING MEXICO'S ELECTION AUTHORITIES MORE INDEPENDENT OF THE PRI APPOINTING A SPECIAL PROSECUTOR FOR ELECTORAL CRIMES AND ALLOWING FOREIGNERS TO MONITOR ELECTIONS 9403230120 940323 INTERNATIONAL RUSSIA AND IMF AGREE ON TERMS OF BUDGET PLAN BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE INTERNATIONAL MONETARY FUND AND RUSSIA AGREED TO A SERIES OF BUDGETBALANCING MEASURES PAVING THE WAY FOR AN IMPORTANT 15 BILLION LOAN THE AGREEMENT CAME AFTER A LONG EVENING MEETING BETWEEN PRIME MINISTER VIKTOR CHERNOMYRDIN AND IMF MANAGING DIRECTOR MICHEL CAMDESSUS YESTERDAY AND FOLLOWED SEVERAL WEEKS OF NEGOTIATIONS DURING WHICH IMF REPRESENTATIVES SCRUTINIZED THE RUSSIAN GOVERNMENT'S PROPOSED BUDGET FOR 1994 THOSE TALKS SOMETIMES STALLED OVER IMF CONCERNS THAT THE GOVERNMENT WOULD BE UNABLE TO STICK TO BUDGETARY RESTRAINTS AND REVENUERAISING GOALS THE DRAFT BUDGET CALLS FOR A DEFICIT OF 624 TRILLION RUBLES 36 BILLION OR 9 OF GROSS DOMESTIC PRODUCT IT IS MORE STRINGENT THAN MANY EXPECTED AND IS STILL LIKELY TO MEET RESISTANCE IN THE LOWER HOUSE OF PARLIAMENT OR STATE DUMA MANY INDUSTRIAL AND AGRICULTURAL LOBBIES ARE CRYING FOR MORE SUBSIDIES SAYING THAT EXISTING GOVERNMENT OBLIGATIONS HAVEN'T BEEN MET WE BELIEVE THE MEASURES THE GOVERNMENT INTENDS TO SUBMIT TO PARLIAMENT ARE REASONABLE AND IN LINE WITH RUSSIA'S COMMITMENT TO LOWER INFLATION MR CAMDESSUS SAID MONTHLY INFLATION FELL TO 99 IN FEBRUARY FROM 22 IN JANUARY THE AGREEMENT IS A VOTE OF CONFIDENCE IN RUSSIA'S COMMITMENT TO ECONOMIC REFORMS THAT COMMITMENT HAS BEEN UNDER DOUBT IN RECENT MONTHS AS KEY REFORMERS LEFT THE GOVERNMENT AND THE PRESIDENT SEEMED TO BE LEANING TOWARD GREATER STATE CONTROL OVER THE ECONOMY IT IS A SIGNIFICANT BREAKTHROUGH SAID A WESTERN DIPLOMAT IT SETS A GOOD STAGE FOR CONFIDENCE WHICH IS WHAT THEY NEED RIGHT NOW WITHIN THE WEEK THE GOVERNMENT AND THE IMF WILL COMPLETE THE WRITING OF A MEMORANDUM THAT WILL DESCRIBE THE THRUST AND DETAIL OF RUSSIAN ECONOMIC POLICY FOR THE REST OF THE YEAR MR CAMDESSUS SAID ALL THE BASIC STRATEGIC ISSUES ARE READY HE SAID NO MAJOR DIFFICULTIES REMAIN TO BE SOLVED THE NEXT STEP WILL BE FOR THE GOVERNMENT TO PROMULGATE EXECUTIVE ORDERS AND LEGISLATION THAT PUT THE BUDGET APPROVAL PROCESS IN MOTION ONCE DONE THE IMF WILL RELEASE THE 15 BILLION LOAN THE FUNDS ARE INTENDED TO HELP RUSSIA EASE ITS BALANCE OF PAYMENTS CRISIS WHILE PROVIDING A CUSHION OF HARDCURRENCY RESERVES TO HELP PURCHASE CRITICAL IMPORTS IT WILL ALSO SET THE STAGE FOR NEGOTIATIONS ON A SEVERAL BILLION DOLLAR STANDBY LOAN MR CAMDESSUS SAID THOSE TALKS WOULD PROBABLY BEGIN THIS SUMMER AND WOULD RELY GREATLY ON THE FORMULATION OF THE 1995 BUDGET AS WELL AS RUSSIA'S PERFORMANCE IN ADHERING TO 1994 BUDGET GOALS 9403230119 940323 TEXAS JOURNAL HEARD IN TEXAS HOUSTON INDUSTRIES SEES ITS PAYOUT IMPERILED ON TWO BUSINESS FRONTS BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU'RE LOOKING FOR HIGH DIVIDENDS YOU CAN'T GET MUCH LOFTIER THAN HOUSTON INDUSTRIES AT ITS CURRENT STOCK PRICE OF ABOUT 37 THE HOUSTON UTILITY AND CABLETELEVISION HOLDING COMPANY IS YIELDING MORE THAN 8 ANNUALLY MORE THAN A FULL PERCENTAGE POINT HIGHER THAN THE AVERAGE UTILITY EVEN WITH RISING INTEREST RATES THAT YIELD FAR EXCEEDS THE RETURN ON MOST TREASURYS BUT IF YOU BUY THERE'S A PRICE ATTACHED YOU MAY SPEND YOUR NIGHTS WORRYING ABOUT NOT ONE BUT TWO GOVERNMENT AGENCIES WHOSE ACTIONS COULD EFFECT THE COMPANY'S STOCK ON ONE FRONT THE TEXAS PUBLIC UTILITY COMMISSION IS LOOKING TO PARE RATES CHARGED BY HOUSTON INDUSTRIES' HOUSTON LIGHTING & POWER UNIT IN THE WAKE OF AN ADMINISTRATIVE LAW JUDGE'S FINDING THAT ENOUGH EVIDENCE EXISTS TO SUGGEST HL&P IS EARNING EXCESS PROFITS ON THE OTHER FRONT THE FEDERAL COMMUNICATIONS COMMISSION LAST MONTH IMPOSED A 7 REDUCTION IN CABLETV SUBSCRIBER RATES A FURTHER TIGHTENING OF THE REGULATORY NOOSE AROUND THE INDUSTRY'S NECK ALL OF THAT MEANS UNCERTAINTY TO SHAREHOLDERS NOT ONLY DO THE MANEUVERINGS MEAN THE COMPANY'S SHARE PRICE IS SUBJECT TO CONTINUED EROSION BUT FUTURE DIVIDEND GROWTH APPEARS TO BE IMPERILED IN FACT MANY ANALYSTS DON'T EXPECT THE 3 ANNUAL DIVIDEND WILL EXPAND AT ALL FOR THE NEXT FEW YEARS BECAUSE THEY CONTEND REGULATORY RULINGS WILL STIFLE EARNINGS GROWTH I DON'T THINK THE DIVIDEND WILL BE CUT ANYTIME SOON BUT INVESTORS HAVE TO QUESTION ITS SUSTAINABILITY OVER THE NEXT FEW YEARS SAYS OPPENHEIMER ANALYST CRAIG LUCAS IN NEW YORK LAST YEAR HOUSTON INDUSTRIES DIVERTED A WHOPPING 937 OF EARNINGS INTO DIVIDENDS MUCH HIGHER THAN THE INDUSTRY AVERAGE OF ABOUT 80 THAT LEAVES THE COMPANY LITTLE ROOM FOR ERROR IN 1994 ANALYSTS PREDICT HOUSTON INDUSTRIES WILL EARN 320 TO 345 A SHARE THIS YEAR ROUGHLY THE SAME AS THE 416 MILLION OR 320 A SHARE IT EARNED IN 1993 BUT NEXT YEAR COULD GET DICIER IF HL&P GETS HIT WITH A RATE REDUCTION LAST MONTH AN ADMINISTRATIVE LAW JUDGE HEARING A COMPLAINT BROUGHT BY A FORMER HL&P EMPLOYEE REQUIRED THE UTILITY COMPANY TO PROVE THAT ITS RATES ARE REASONABLE A UTILITY IS ALLOWED A CERTAIN RETURN ON INVESTMENT AS SET BY THE UTILITY COMMISSION A TEXAS UTILITYCOMMISSION STAFF ANALYSIS FOUND THAT BASED ON 1992 EARNINGS HL&P MIGHT BE OVEREARNING ANYWHERE FROM 23 MILLION TO 1014 MILLION BECAUSE ITS BORROWING COSTS HAVE FALLEN AND IT HAS LOWERED ITS EXPENSES BY LAYING OFF 1500 WORKERS THE COMPANY HOWEVER POINTS OUT THAT A LATER COMMISSION REVIEW BASED ON THE 12 MONTHS ENDED JUNE 1993 FOUND THE UTILITY COULD BE UNDEREARNING AS MUCH AS 9 MILLION OR OVEREARNING AS MUCH AS 62 MILLION LAST WEEK THE COMMISSION DECLINED TO HEAR HOUSTON INDUSTRIES' APPEAL MEANING A FULLBLOWN RATE CASE IS LIKELY HL&P NOW IS APPEALING DIRECTLY TO THE ADMINISTRATIVE LAW JUDGE ANALYSTS SAY A REDUCTION OF ABOUT 62 MILLION ROUGHLY THE MIDPOINT OF THE EARLY FINDINGS WOULD TRIM ABOUT 30 CENTS A SHARE FROM 1995 EARNINGS MAKING MATTERS WORSE THIS COMES AS PUBLIC PRESSURE IS MOUNTING AGAINST HL&P THE CITY OF AUSTIN RECENTLY FILED A 125 MILLION LAWSUIT IN HARRIS COUNTY DISTRICT COURT IN HOUSTON CLAIMING HL&P MISMANAGED THE SOUTH TEXAS PROJECT NUCLEAR POWER PLANT WHICH HAS BEEN SHUT DOWN FOR MORE THAN A YEAR BECAUSE OF MECHANICAL AND MANAGERIAL PROBLEMS AND IN WHICH AUSTIN IS A PARTNER SUCH PROBLEMS AND EARNINGS PRESSURE ARE CUSTOMARY AT UTILITY PROVIDERS SO HOUSTON INDUSTRIES HAS ATTEMPTED TO BRING SOME EARNINGS STABILITY THROUGH ITS CABLETV UNIT KBLCOM BUT EVEN THAT BUSINESS HAS STRUCK UPON UNCERTAIN TIMES KBLCOM HAS YET TO RECORD A YEAR IN THE BLACK AND WHILE MANY INCLUDING THE COMPANY EXPECTED 1994 TO BE KBLCOM'S FIRST PROFITABLE YEAR REREGULATION HAS PUSHED PROFITABILITY OUT FURTHER INTO THE FUTURE SAYS MICHAEL WORMS A MANAGER AT BROWN BROTHERS HARRIMAN IN NEW YORK THE COMPANY HASN'T DETERMINED THE IMPACT OF THE LATEST ROUND OF REREGULATION BUT EXECUTIVES SAY THE ORIGINAL CABLE REREGULATION EFFORT IN 1992 IS COSTING KBLCOM ABOUT 30 MILLION ANNUALLY BUT EVEN WITH A PROFITABLE KBLCOM THE UTILITY SIDE OF THE BUSINESS IS HOUSTON INDUSTRIES' REAL EARNINGS GENERATOR FOR THE IMMEDIATE FUTURE EVEN IF KBLCOM WERE TO CONTRIBUTE 14 MILLION TO NET INCOME FOR 1994 THE HIGH SIDE OF WHAT ANALYSTS HAD EXPECTED BEFORE REREGULATION STRUCK THAT'S JUST 3 OF THE HOLDING COMPANY'S EARNINGS LAST YEAR BUT SOME ANALYSTS SEE THE CABLETV SIDE PROVIDING MOST OF HOUSTON INDUSTRIES' EARNINGS GROWTH IN THE FUTURE AND KBLCOM COULD HELP THE DIVIDEND TO A SMALL DEGREE IF PART OF THE CABLE UNIT IS SOLD HOUSTON INDUSTRIES LAST NOVEMBER ANNOUNCED IT WAS SEEKING A STRATEGIC PARTNER INTERESTED IN BUYING AS MUCH AS 50 OF KBLCOM IT HAS YET TO FIND A BUYER BUT IF SUCCESSFUL THE MONEY RECEIVED WOULD ERASE THE CABLE UNIT'S DEBT AND INCREASE THE PARENT'S NET INCOME THEREBY REDUCING THE DIVIDEND PAYOUT RATIO AND PROVIDING SOME LEEWAY FOR FUTURE GROWTH ANALYSTS AREN'T COUNTING ON A SALE JUST YET THOUGH CABLE PROPERTIES HAVE BEEN HOT IN RECENT MONTHS THEY'VE LOST MUCH LUSTER BECAUSE OF THE REREGULATION EFFORTS AND THE DEMISE OF THE TELECOMMUNICATIONS AND BELL ATLANTIC DEAL STILL THERE ARE SOME WHO FIND THE STOCK MILDLY ATTRACTIVE RAYMOND MOORE AT DILLON READ IN NEW YORK CONTENDS THAT WITH THE HIGH YIELD AND DEPRESSED PRICE THE STOCK IS TRADING NEAR ITS YEARLY LOW HE WOULD BE A BUYER NOW BUT I WOULDN'T BE BANGING ON MY DESK ABOUT IT OTHERS AREN'T SO SURE BARRY ABRAMSON A UTILITIES ANALYST AT PRUDENTIAL SECURITIES IN NEW YORK RATES THE COMPANY A HOLD MR ABRAMSON NOTES THAT UNTIL THE COMPANY FINDS A WAY TO BOOST ITS EARNINGS THE HIGH PAYOUT RATIO ALL BUT PREVENTS ANY DIVIDEND GROWTH ON TOP OF THAT THERE'S THE UNCERTAINTY SURROUNDING THE POSSIBLE RATE CUT THAT COULD PUT ADDED EARNINGS PRESSURE ON THE STOCK MR ABRAMSON SAYS HORNBECK OFFSHORE SERVICES GALVESTON LEAPED MORE THAN 30 LAST WEEK AS INVESTORS RESPONDED TO STRONG EARNINGS FOR THE FOURTH QUARTER HORNBECK POSTED NET INCOME OF 269 MILLION OR 20 CENTS A SHARE INCLUDING A LOSS OF 280000 FROM EARLY RETIREMENT OF DEBT AS WELL AS A CHARGE OF 614000 FROM UNSUCCESSFUL SALVAGE EFFORTS A YEAR EARLIER HORNBECK EARNED 116 MILLION OR 12 CENTS A SHARE LA QUINTA INNS SAN ANTONIO GAINED 14 ON NEWS THAT COMPANY FOUNDER AND CHAIRMAN SAM BARSHOP SAID HE WOULD STEP DOWN MARCH 19 LA QUINTA'S SHARES JUMPED 383 A SHARE TO 3075 ADJUSTED FOR A 3FOR2 STOCK SPLIT PAID MARCH 16 TANKNOLOGY ENVIRONMENTAL HOUSTON DROPPED 8 TO 4375 AFTER ANNOUNCING IT EXPECTS TO REPORT A SMALL LOSS FOR THE FIRST QUARTER THE COMPANY SAYS IT DOESN'T EXPECT THE LOSS TO EXCEED THREE CENTS A SHARE A YEAR EARLIER IT EARNED TWO CENTS A SHARE TANKNOLOGY WHOSE MAIN BUSINESS IS TESTING UNDERGROUND STORAGE TANKS FOR LEAKS NOTED THAT THE FIRST QUARTER TYPICALLY THE COMPANY'S SLOWEST HAS BEEN FURTHER IMPACTED BY THE UNSEASONABLY COLD WEATHER IN MANY PARTS OF THE US 9403230118 940323 BRENNAN PROPOSES PURCHASE OF TRACKS FROM NEW JERSEY BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HORSERACING PROMOTER ROBERT E BRENNAN MADE A 1 BILLION BID TO BUY NEW JERSEY'S MEADOWLANDS SPORTS COMPLEX AND MONMOUTH PARK RACETRACK AN OFFER CONTINGENT ON THE EXPANSION OF LEGALIZED GAMBLING IN THE STATE AND ON ARRANGEMENT OF FINANCING MR BRENNAN THE CONTROVERSIAL FORMER HEAD OF NOWDEFUNCT FIRST JERSEY SECURITIES PROPOSED THAT INTERNATIONAL THOROUGHBRED BREEDERS INC WHICH HE CONTROLS GAIN CONTROL OF ALL FIVE NEW JERSEY HORSERACING TRACKS TWO OF WHICH ARE OWNED BY THE STATE'S SPORTS AUTHORITY THE NEW JERSEY SPORTS AND EXHIBITION AUTHORITY SOME STATE OFFICIALS HAVE SAID MR BRENNAN'S PROPOSAL IS UNLIKELY TO GAIN ACCEPTANCE IT ENVISIONS RIVERBOAT GAMBLING ON MANMADE LAKES AT GARDEN STATE PARK WHICH MR BRENNAN'S COMPANY OWNS AND AT THE MEADOWLANDS THE NORTHERN NEW JERSEY SPORTS COMPLEX THAT ALSO HAS AN OUTDOOR SPORTS STADIUM AND AN INDOOR ARENA AND IS RUN BY THE SPORTS AUTHORITY NEW JERSEY'S NEW GOVERNOR CHRISTINE TODD WHITMAN HAS ADVOCATED PRIVATIZATION OF GOVERNMENT ENTITIES AND THE SPORTS AUTHORITY APPOINTED A TASK FORCE TO EXPLORE POSSIBLE SALES AFTER SHE NAMED A NEW CHAIRMAN MR BRENNAN'S PROPOSAL PRESENTED TO THE SPORTS AUTHORITY FACES SEVERAL MAJOR HURDLES INCLUDING ADOPTION OF A CONSTITUTIONAL AMENDMENT TO EXPAND LEGALIZED GAMBLING IN THE STATE AND A SALE COULD AFFECT HOLDERS OF ABOUT 450 MILLION IN SPORTSAUTHORITY PUBLIC BONDS MEANWHILE MR BRENNAN AND COMPANIES WITH WHICH HE HAS BEEN INVOLVED ARE EMBROILED IN LITIGATION A SECURITIES AND EXCHANGE COMMISSION LAWSUIT ALLEGING PRICE GOUGING AND UNFAIR MARKUPS BY FIRST JERSEY IN THE PENNYSTOCK MARKET IS PENDING IN FEDERAL DISTRICT COURT IN MANHATTAN AND INTERNATIONAL THOROUGHBRED MR BRENNAN AND OTHERS HAVE BEEN ACCUSED IN FEDERAL COURT IN NEW JERSEY OF MISLEADING INVESTORS IN PUBLIC OFFERINGS IN THE MID1980S MADE BY FIRST JERSEY THE COMPANY HAS AGREED TO A PROPOSED PARTIAL SETTLEMENT IN THIS SUIT CALLING FOR PAYMENT OF MORE THAN 7 MILLION INCLUDING DIRECTORS' LIABILITYINSURANCE COVERAGE THE COMPANY HAS MAINTAINED THAT THE SHAREHOLDER SUIT IS WITHOUT MERIT MR BRENNAN DEFENDED HIS PROFESSIONAL RECORD SAYING I HAVE NEVER BEEN FOUND TO VIOLATE ANY SECURITIES LAWS I HAVE ON OCCASION DEFENDED MYSELF LIKE ANYONE ELSE AGAINST LAWSUITS BUT I THINK ULTIMATELY YOU HAVE TO TAKE IT TO THE BOTTOM LINE ALLEGATIONS ARE CHEAP IN THE FISCAL YEAR ENDED JUNE 30 1993 INTERNATIONAL THOROUGHBRED WHICH OWNS AND OPERATES GARDEN STATE HAD A LOSS OF 294 MILLION OR 40 CENTS A SHARE ON 419 MILLION IN REVENUE MR BRENNAN SAID THAT WHILE HIS TRACK HAS HAD DIFFICULTY THE ENTIRE INDUSTRY HAS BEEN ADVERSELY AFFECTED BY THE GROWTH OF CASINO GAMBLING IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE INTERNATIONAL THOROUGHBRED SHARES ROSE 1125 A SHARE OR 16 TO CLOSE AT 8125 ON SHARPLY HIGHER THAN USUAL VOLUME 9403230117 940323 US SURGICAL TO GET INFUSION OF 200 MILLION BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL US SURGICAL CORP SAID IT COMPLETED NEGOTIATIONS THAT WILL RESULT IN A 200 MILLION INVESTMENT IN THE COMPANY THE STRUGGLING MAKER OF SURGICAL EQUIPMENT SAID LAST MONTH IT WAS SEEKING NEW EQUITY TO BOLSTER ITS SAGGING FINANCIAL POSITION US SURGICAL HAS BEEN BUFFETED BY STIFF COMPETITION BLOATED INVENTORIES AND CONCERNS AMONG ITS CUSTOMERS OVER HEALTH REFORM AND OTHER CHANGES IN THE HEALTHCARE SYSTEM US SURGICAL REFUSED TO IDENTIFY WHO WAS PROVIDING THE 200 MILLION IN CAPITAL OR TO GIVE OTHER DETAILS SAYING IT WILL MAKE AN ANNOUNCEMENT MONDAY AFTERNOON HOWEVER THE NORWALK CONNBASED COMPANY DID SAY THE TRANSACTION WOULD BE EXEMPT FROM REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION US SURGICAL ONCE A HOT GROWTH STOCK SAID LAST MONTH IT WAS OPERATING UNDER WAIVERS FROM ITS INSURANCECOMPANY LEASEHOLDERS AND THAT WHILE IT ISN'T IN DEFAULT OF ANY BANK AGREEMENTS IT IS PRECLUDED FROM FURTHER BORROWINGS UNDER THOSE AGREEMENTS LEON C HIRSCH US SURGICAL CHAIRMAN SAID YESTERDAY THAT THIS EQUITY WILL GIVE US A LOT OF FINANCIAL FLEXIBILITY AND WILL FULLY RESOLVE ISSUES WITH THE COMPANY'S LENDERS BUT HE SAID HE COULDN'T ELABORATE UNTIL MONDAY WHEN THE COMPANY PLANS A BRIEFING FOR SECURITIES ANALYSTS AND THE MEDIA AFTER THE MARKET CLOSES US SURGICAL SHARES CLOSED AT 1975 DOWN 125 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE KURT KRUGER AN ANALYST WITH HAMBRECHT & QUIST SAID THE NEW CAPITAL IS A GOOD THING AND THAT IT LIKELY WILL LEAD TO REDUCED INTEREST COSTS IT WILL ALSO ALLOW THE COMPANY TO FOCUS ON THE DAUNTING TASK OF TAKING MARKETSHARE BACK FROM JOHNSON & JOHNSON'S ETHICON UNIT ETHICON US SURGICAL'S CHIEF RIVAL FOR EQUIPMENT USED IN MINIMALLY INVASIVE SURGERY HAS MADE STEEP INROADS INTO US SURGICAL'S DOMINANCE OF THE MARKET BUT THE NEW INVESTMENT WILL LIKELY HAVE A DILUTIVE EFFECT ON THE COMPANY'S EARNINGS IN 1994 MR KRUGER SPECULATED THAT US SURGICAL WOULD ISSUE 10 MILLION NEW SHARES AT 20 A SHARE TO RAISE THE 200 MILLION THE COMPANY CURRENTLY HAS ABOUT 56 MILLION SHARES OUTSTANDING MR KRUGER LOWERED HIS 1994 EARNINGS ESTIMATES FOR THE COMPANY TO 13 CENTS A SHARE FROM 19 CENTS THE COMPANY SAID LAST WEEK IT HAD A LOSS OF 1387 MILLION OR 248 CENTS A SHARE IN 1993 INCLUDING A RESTRUCTURING CHARGE OF 1376 MILLION THE RESULTS WEREN'T AUDITED 9403230116 940323 LEGAL BEAT A STORE OWNER'S SQUABBLE WITH A CITY TESTS GOVERNMENT'S RIGHT TO PRIVATE LAND BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL ON HIS DEATHBED LAST MARCH JOHN DOLAN EXACTED A PROMISE FROM HIS SON DANIEL DON'T GIVE UP THE FIGHT AGAINST CITY HALL THE DOLANS HAD TANGLED FOR FIVE YEARS WITH THE CITY OF TIGARD ORE A SUBURB OF PORTLAND OVER PLANS TO EXPAND THEIR PLUMBING STORE THE CITY INSISTED THAT TO GET A PERMIT THE DOLANS HAD TO SURRENDER A TENTH OF THEIR 17ACRE LOT FOR STORM DRAINAGE AND A BIKE PATH PROTESTING WHAT THEY SAW AS A CONFISCATION OF PRIVATE PROPERTY THE DOLANS SUED ALTHOUGH THEY LOST IN STATE COURTS THEY BECAME HEROES TO PROPERTYRIGHTS ADVOCATES AROUND THE COUNTRY NOW THEIR CASE WILL GO BEFORE THE US SUPREME COURT WHICH WILL HAVE THE CHANCE TO CLARIFY HOW FAR GOVERNMENT MAY GO IN REGULATING COMMERCIAL AND RESIDENTIAL DEVELOPMENT ORAL ARGUMENTS ARE SCHEDULED FOR TODAY IT IS POTENTIALLY QUITE AN IMPORTANT CASE SAYS CARTER PHILLIPS A WASHINGTON LAWYER WHO OFTEN REPRESENTS BUSINESSES BEFORE THE HIGH COURT IF THE DOLANS WIN HE PREDICTS THE LOWER COURTS WILL BE SWAMPED BY SIMILAR SUITS THE FIFTH AMENDMENT PROHIBITS GOVERNMENT FROM TAKING PRIVATE PROPERTY WITHOUT PAYING OWNERS JUST COMPENSATION WHEN OFFICIALS PUT A HIGHWAY THROUGH SOMEONE'S BACKYARD FOR INSTANCE IT REQUIRES THAT THE HOMEOWNER BE PAID BUT MANY COMMUNITIES ROUTINELY REQUIRE DEVELOPERS WITHOUT COMPENSATING THEM TO TURN OVER PIECES OF PROPERTY ALLOW PUBLIC RIGHTSOFWAY OR IMPROVE STREETS AND SIDEWALKS FOR 60 YEARS THE SUPREME COURT GENERALLY HAS ALLOWED LOCAL AND FEDERAL OFFICIALS BROAD LEEWAY AS LONG AS OWNERS AREN'T DENIED THE ENTIRE ECONOMIC VALUE OF THEIR PROPERTY BUT IN A 1987 RULING THAT WAS SOMETHING OF A DEPARTURE FROM THAT APPROACH THE HIGH COURT SAID JUDGES SHOULD LOOK SKEPTICALLY AT PERMIT CONDITIONS TO MAKE SURE THAT THEY AREN'T MANIPULATED TO EXTORT PROPERTY FROM PRIVATE OWNERS THE DOLANS WHO LIVE IN PORTLAND AND OWN 11 HARDWARE AND LIGHTING STORES IN THE AREA HAVE FEUDED WITH OFFICIALS IN TIGARD POP 32000 SINCE THE LATE 1980S WHEN JOHN DOLAN LED A SUCCESSFUL DRIVE TO BLOCK CITY PLANS TO SPRUCE UP ITS DOWNTOWN MR DOLAN WAS ENRAGED BECAUSE THE PLAN WOULD HAVE FORCED HIM TO MOVE HIS ABOY PLUMBING SUPPLY STORE WHICH EMPLOYS SEVEN PEOPLE AND IS HOUSED IN A SINGLESTORY WAREHOUSESTYLE BUILDING VOTERS THWARTED ITS AMBITIOUS URBANRENEWAL PLANS BUT THE CITY PROCEEDED WITH A SEPARATE PROJECT TO CREATE A PARK ALONG A CREEK THAT MEANDERS THROUGH THE DOWNTOWN AREA FANNO CREEK AS IT HAPPENS RUNS ALONG THE WEST BORDER OF THE ABOY LOT AND WHEN THE DOLANS IN 1989 PROPOSED REPLACING THEIR STORE WITH A LARGER ONE ON THE SAME PROPERTY THEY AGAIN CLASHED WITH CITY HALL ZONING OFFICIALS APPROVED THE EXPANSION ON THE CONDITION THAT THE DOLANS TURN OVER 7000 SQUARE FEET ABUTTING THE CREEK THE CITY GAVE TWO REASONS FIRST THE IMPROVED STORE'S LARGER PARKING LOT WOULD CAUSE MORE RUNOFF INTO THE CREEK REQUIRING A BUFFER AREA TO REDUCE FLOODING RISKS SECOND THE CITY WANTED THE DOLANS TO PUT IN PART OF A BIKE PATH AIMED AT EASING TRAFFIC CONGESTION AND ATTRACTING PEOPLE TO THE NEW PARK THESE PURPOSES TAKE PRECEDENCE IN THE COMMUNITY OVER THE DESIRES OF AN INDIVIDUAL PROPERTY OWNER TO DO EXACTLY WHAT HE WANTS TO SAID TIGARD'S CITY PLANNER LIZ NEWTON ANYONE PROPOSING NEW DEVELOPMENT ALONG FANNO CREEK MAY BE REQUIRED TO MAKE SIMILAR SACRIFICES SHE ADDED ALTHOUGH SHE ACKNOWLEDGED THAT ONLY ONE OR TWO OTHER DOWNTOWN PROPERTY OWNERS HAVE BEEN FORCED TO GIVE UP LAND JOHN DOLAN A FIESTY FORMER CAPTAIN IN THE MERCHANT MARINE COMPLAINED THAT THE FLOODING CONCERNS WERE EXAGGERATED AND THAT HIS CUSTOMERS WOULDN'T RIDE BIKES TO PICK UP BATHTUBS OR TOILETS SOME OF THE CONTESTED TURF CLOSEST TO THE CREEK IS TOO SWAMPY TO BE OF ANY COMMERCIAL USE ADDING THE BIKE PATH THOUGH WOULD REQUIRE THAT THE NEW BUILDING BE REDESIGNED BUT WHAT IS IMPORTANT TO THE DOLANS IS THE PRINCIPLE OF NOT WANTING TO GIVE UP OUR PROPERTY FOR NOTHING SAYS 38YEAROLD DANIEL DOLAN WHO TOOK OVER THE FIGHT AND THE FAMILY COMPANY WHEN HIS FATHER DIED OF LEUKEMIA LAST YEAR REPRESENTED BY A LOCAL LAWYER THE DOLANS QUIBBLED WITH THE CITY FOR A WHILE OVER ITS DEMAND THEN A SYMPATHETIC TIGARD CITIZEN URGED THEM TO SEEK SUPPORT FROM THE BURGEONING MOVEMENT OF PROPERTYRIGHTS ACTIVISTS WHO HAVE TRIED IN RECENT YEARS TO GET THE COURTS TO RESTRICT LAND REGULATION THE DOLANS SWITCHED ATTORNEYS AND BECAME BORNAGAIN FIFTH AMENDMENT BELIEVERS PREVIOUSLY WE DIDN'T EVEN KNOW WHAT THE FIFTH AMENDMENT SAID LAUGHS DANIEL DOLAN BUT ONCE THEY FOUND OUT HE SAYS THEY EXCLAIMED THAT'S US THAT'S US DESPITE THE SUPREME COURT'S TRADITIONALLY DEFERENTIAL VIEW OF LOCAL GOVERNMENT CLAIMING PROPERTY THE DOLANS' NEW LAWYERS PROVIDED FREE BY A PROPERTYRIGHTS GROUP CALLED OREGONIANS IN ACTION THOUGHT THEY COULD TAKE ADVANTAGE OF THE 1987 HIGH COURT RULING THAT DIRECTED JUDGES TO EXAMINE CHALLENGED LANDUSE RULES MORE CLOSELY THE OREGON STATE COURTS DIDN'T READ THAT CASE NOLLAN VS CALIFORNIA COASTAL COMMISSION AS SIGNIFICANTLY CHANGING THE STANDARD FOR SCRUTINIZING LAND REGULATIONS AND THEY REJECTED THE DOLANS' CLAIM THE OREGON SUPREME COURT CONCLUDED THAT TIGARD'S ANNOUNCED PURPOSES LIMITING FLOODS AND RELIEVING TRAFFIC CONGESTION WERE LEGITIMATE AND SUFFICIENTLY RELATED TO BURDENS CREATED BY THE STORE EXPANSION PROPERTYRIGHTS ACTIVISTS CONTEND THAT THE OREGON COURTS' DECISIONS EXEMPLIFY A PATTERN OF RESISTANCE TO THE NOLLAN RULING MANY LOWER COURTS ARE TRYING TO OBFUSCATE OR NARROW THE 1987 US SUPREME COURT PRECEDENT MAINTAINS ROBIN RIVETT OF THE PACIFIC LEGAL FOUNDATION IN SACRAMENTO CALIF THE FOUNDATION IS ONE OF A DOZEN OR SO GROUPS THAT HAVE FILED FRIENDOFTHECOURT BRIEFS URGING THE JUSTICES TO USE THE DOLAN CASE TO EMPHATICALLY REIN IN REGULATORS ENVIRONMENTAL GROUPS AND THE CLINTON ADMINISTRATION HAVE WEIGHED IN ON TIGARD'S SIDE THEY SAY REGULATORS WOULD BE PARALYZED IF THEY WERE FORCED TO PAY WHENEVER THEY IMPOSE PERMIT CONDITIONS SUCH AS THOSE AT ISSUE IN THIS CASE AND THEY WARN THAT DEVELOPERS IF THE DOLANS ARE SUCCESSFUL COULD END UP REGRETTING VICTORY THAT'S BECAUSE REGULATORS ACTING ON PLAUSIBLE ENVIRONMENTAL CONCERNS MIGHT HAVE NO ALTERNATIVE BUT TO REJECT DEVELOPMENT PROPOSALS OUTRIGHT IRONICALLY COURTS HAVE VIEWED MANDATORY TRANSFERS OF PROPERTY TO THE GOVERNMENT MORE SKEPTICALLY THAN PERMIT DENIALS 9403230114 940323 CITICORP EXPECTS TRADING REVENUE TO DECLINE IN '94 BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CITICORP CHAIRMAN AND CHIEF EXECUTIVE JOHN REED SAID THE NATION'S LARGEST BANK EXPECTS ITS TRADING REVENUE IN 1994 TO DECLINE FROM LAST YEAR'S 28 BILLION RECORD BUT HE PREDICTED THAT OVERALL EARNINGS WILL CONTINUE TO IMPROVE OVER THE NEXT TWO YEARS MR REED TOLD A MEETING OF SECURITIES ANALYSTS THAT CITICORP'S EARNINGS GROWTH WILL COME FROM OVERSEAS A THIRD OF OUR BUSINESS IS INTERNATIONAL AND IT IS GROWING IN DOUBLEDIGITS HE SAID HOWEVER THAT GROWTH WILL NOT CONTINUE IN HONG KONG CITIBANK'S MOST IMPORTANT PROFIT CONTRIBUTOR IN ASIA RANA TALWAR EXECUTIVE VICE PRESIDENT FOR CONSUMER BANKING IN THE ASIAN PACIFIC REGION SAID CITIBANK HAS CAPPED ITS GROWTH IN HONG KONG BECAUSE OF CONCERNS ABOUT CHINA'S TAKEOVER OF THE COLONY IN 1997 WE ARE TAKING A MORE CONSERVATIVE VIEW THAN MANY OF OUR COMPETITORS HE SAID TWO YEARS AGO MR REED SAID I PUT A CEILING ON WHAT I WAS WILLING TO LOSE IN HONG KONG ASSUMING A WORSTCASE SCENARIO HE SAID THE BANK LOOKED AT WHAT HAPPENED IN IRAN PANAMA AND LEBANON TO GAUGE THE POTENTIAL IMPACT OF ADVERSE CIRCUMSTANCES NEVERTHELESS PEIYUAN CHIA CITICORP'S VICE CHAIRMAN FOR INTERNATIONAL CONSUMER BANKING NOTED WE HAVE NO INTENTION OF LEAVING HONG KONG HE SAID CITICORP HAS BEEN MONITORING THE POLITICAL SITUATION FOR THE PAST FIVE YEARS AND THAT IT EXPECTS TO MAINTAIN ITS 26 BRANCHES IN HONG KONG THROUGH 1997 MR REED SAID CITICORP'S GROWTH IS UNLIKELY TO COME FROM THE US MARKET AND THAT THE COMPANY IS UNLIKELY TO PARTICIPATE IN THE CONTINUING CONSOLIDATION OF THE US BANKING INDUSTRY BY ACQUIRING OTHER BANKS WE ARE NOT SEEKING TO PLAY THE GAME OF BUYING THE BANK NEXT DOOR HE SAID THE IDEA OF BUYING A 200BRANCH BANK IN CALIFORNIA DOESN'T COMPUTE FOR US HE SAID CITICORP PREFERS TO STICK TO OUR KNITTING MEANING IT WILL MAINTAIN ITS STRATEGY OF IMPROVING ITS BALANCE SHEET AND FOCUSING ON HIGHGROWTH FOREIGN MARKETS THE BANK IS ACTIVELY EXPANDING OPERATIONS IN OVERSEAS MARKETS OTHER THAN HONG KONG MR REED SAID CITICORP WILL INCREASE OPERATING EXPENSES IN THOSE MARKETS BY A COUPLE OF HUNDRED MILLION DOLLARS BANK OFFICIALS SAID REVENUES ARE PROJECTED TO GROW AT 24 TIMES THE INCREASE IN EXPENSES IN 1993 CITICORP POSTED EARNINGS OF 192 BILLION OR 382 A SHARE BEFORE AN ACCOUNTING ADJUSTMENT EARNINGS INCLUDED ABOUT 300 MILLION OF CHARGES CITICORP EASED 25 CENTS TO 38625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9403230113 940323 WHAT'S NEWS BUSINESS AND FINANCE THE FED'S POLICY MAKERS VOTED TO PUSH UP SHORTTERM INTEREST RATES FOR THE SECOND TIME IN AS MANY MONTHS THE LATEST IN WHAT IS EXPECTED TO BE A SERIES OF RATE INCREASES ALTHOUGH THE FED WASN'T EXPLICIT IN ITS STATEMENT IT DECIDED TO INCREASE THE BENCHMARK FEDERALFUNDS INTEREST RATE BY 1/4 PERCENTAGE POINT TO 3 1/2 BOND PRICES SOARED AFTER THE FED'S ANNOUNCEMENT THE TREASURY'S BENCHMARK 30YEAR BOND JUMPED 1 1/4 POINTS WITH THE YIELD FALLING TO 685 STOCK PRICES WERE MIXED WITH THE DOW JONES INDUSTRIALS SLIPPING 230 POINTS TO 386255 THE DOLLAR WAS STEADY THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE APPROVED A 125APACK INCREASE IN FEDERAL CIGARETTE TAXES BUT REMAINED DEEPLY DIVIDED OVER A PROPOSED PAYROLL TAX TO FINANCE A DEMOCRATBACKED HEALTHREFORM PLAN MACY'S BOARD APPROVED AN OUTLINE OF A BANKRUPTCYLAW REORGANIZATION PLAN THAT STRIKES A COMPROMISE BETWEEN THE STANCE TAKEN BY CHAIRMAN MYRON ULLMAN AND DIRECTOR LAURENCE TISCH DIRECTORS AGREED TO VALUE THE RETAILER AT 35 BILLION LESS THAN SOME CREDITORS AND TISCH HAD ADVOCATED BELLSOUTH WILL PROBABLY PUSH TO REVISE TERMS OF ITS PLANNED 500 MILLION INVESTMENT IN QVC LOOKING FOR A PRICE CUT OR OTHER ADJUSTMENTS TO OFFSET A STEEP SLIDE IN QVC'S STOCK THE US TRADE DEFICIT IN GOODS AND SERVICES WIDENED IN JANUARY TO 63 BILLION FROM 414 BILLION IN DECEMBER AS US EXPORTS WERE HURT BY ECONOMIC SLUMPS IN SOME OVERSEAS MARKETS LEHMAN BROTHERS LAUNCHED A TOUGH COSTCUTTING DRIVE THAT COULD FORCE THE DEPARTURES OF UP TO 400 INVESTMENT BANKERS TRADERS AND SALES PEOPLE THE HOUSE APPROVED A BILL TO PERMIT BANKS TO OPERATE NATIONWIDE BRANCH NETWORKS AS OPPOSITION TO THE LEGISLATION CONTINUED TO SOFTEN THE BIG BOARD IS CONSIDERING TRADING FOREIGN STOCKS IN DIFFERENT CURRENCIES IN AN EFFORT TO MAINTAIN ITS PRESTIGE IN THE GLOBAL MARKETPLACE JAPAN'S ECONOMY CONTRACTED AT A 22 ANNUAL PACE IN THE QUARTER ENDED DEC 31 BETTERTHANEXPECTED RESULTS THAT MAY PROMPT ECONOMISTS TO MODERATE BEARISH FORECASTS FOR THIS YEAR US SURGICAL SAID IT COMPLETED NEGOTIATIONS THAT WILL RESULT IN A 200 MILLION INVESTMENT IN THE COMPANY SPECTRUM INFORMATION'S TROUBLES WIDENED WITH THE ARRESTS OF FIVE OFFICIALS OF A FINANCIAL SERVICES FIRM WITH TIES TO SPECTRUM AND ITS PRESIDENT BURGER KING AWARDED THE CREATIVE PORTION OF ITS ESTIMATED 150 MILLION TO 160 MILLION ACCOUNT TO AMMIRATI SELECTING A MIDSIZE CREATIVELY FOCUSED AGENCY OVER LARGER COMPETITORS MALL DEVELOPER EDWARD DEBARTOLO HAS DECIDED TO TRY AGAIN TO RAISE 575 MILLION BY SELLING THE PUBLIC A 48 STAKE IN HIS RETAIL EMPIRE WASSERSTEIN PERELLA NAMED AS COPRESIDENT FREDERIC SEEGAL A FORMER LEADER OF SALOMON CORPORATE FINANCE HIS JOB WILL BE TO HELP CHAIRMAN BRUCE WASSERSTEIN PLOT STRATEGY AND BEEF UP THE FIRM'S TELECOMMUNICATIONS AND MEDIA INVESTMENT BANKING ACTIVITIES THE THRIFT BAILOUT AGENCY MAY SUBPOENA FINANCIAL INFORMATION TO JUDGE THE NET WORTH OF POTENTIAL LEGAL TARGETS ONLY IF IT REASONABLY SUSPECTS THEY MAY BE LIABLE FOR A THRIFT'S FAILURE A FEDERAL APPEALS COURT RULED SANDOZ PHARMACEUTICALS SAID IT WILL MARKET ITS NEW CHOLESTEROLLOWERING DRUG AT ABOUT HALF THE PRICE OF RIVAL PRODUCTS BY MERCK AND BRISTOLMYERS CITICORP'S CEO SAID THE BANK EXPECTS TRADING REVENUE IN 1994 TO FALL FROM LAST YEAR'S 28 BILLION RECORD BUT HE PREDICTED THAT EARNINGS WILL KEEP IMPROVING OVER THE NEXT TWO YEARS HORCERACING PROMOTER ROBERT BRENNAN BID 1 BILLION TO BUY NEW JERSEY'S MEADOWLANDS SPORTS COMPLEX AND MONMOUTH PARK RACETRACK BUT THE OFFER IS CONTINGENT ON AN EXPANSION OF LEGALIZED GAMBLING IN THE STATE AND ON ARRANGEMENT OF FINANCING BONDS LEHMAN BROTHERS TREASURY INDEX 533511 UP 6535 COMMODITIES OIL 1520 A BARREL OFF 17 CENTS DOW JONES FUTURES INDEX 14399 UP 104 SPOT INDEX 13180 UP 050 DOLLAR 10600 YEN UNCHANGED 16885 MARKS UNCHANGED 9403230112 940323 MARKETING & MEDIA CRAYOLA KIDS HITS STANDS A NEW CUSTOM MAGAZINE NEW YORK LANDING ON NEWSSTANDS THIS WEEK IS CRAYOLA KIDS A NEW MAGAZINE THAT IS A JOINT VENTURE BETWEEN PUBLISHER MEREDITH CORP AND CRAYONMAKER BINNEY & SMITH INC ALREADY OVER 30 MAGAZINES AIM AT CHILDREN BETWEEN THE AGES OF THREE AND EIGHT BUT THE PUBLISHERS OF THIS ONE SAY ITS FOCUS ON READING AND CREATIVE PROJECTS IS UNUSUAL CUSTOM MAGAZINES ARE ON THE RISE UNLIKE MOST OTHERS HOWEVER CRAYOLA KIDS DOESN'T INCLUDE AMONG ITS ADS A SINGLE PITCH FOR ITS CRAYONS NOR DOES IT TOUT THEM IN ARTICLES THE MAGAZINE DOES INCLUDE ACTIVITIES INVOLVING CRAYONS BUT IT DOESN'T SUGGEST USING THE CRAYOLA BRAND WE INTEND TO OPERATE THIS AT THE HIGHEST STANDARD OF CONSUMER JOURNALISM SAID JOHN LOUGHLIN HEAD OF CUSTOM PUBLISHING FOR MEREDITH IN DES MOINES IOWA MR LOUGHLIN SAID THE PARTNERS PROMISED ADVERTISERS A CIRCULATION OF 250000 STARTING WITH THIS FIRST BIMONTHLY ISSUE SUBSCRIPTIONS ARE BEING OFFERED FOR ABOUT 15 AND A MASSIVE DIRECTMAIL CAMPAIGN IS UNDER WAY MR LOUGHLIN SAID CRAYOLA KIDS WILL BE ADVERTISED ON SIX MILLION BOXES OF GENERAL MILLS' BERRY BERRY KIX CEREAL THIS SUMMER THIS IS A MULTIMILLION DOLLAR INVESTMENT AND WE EXPECT TO BREAK EVEN IN 24 TO 36 MONTHS HE SAID 9403230111 940323 TEXAS JOURNAL ECONOMIC FOCUS JOBLESS FIGURES WHAT THEY SHOW AND HIDE BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL AFTER WEEKS OF GRAPPLING WITH BALKY COMPUTERS AND A NEW SURVEYING SYSTEM THE TEXAS EMPLOYMENT COMMISSION YESTERDAY RELEASED ITS MUCHANTICIPATED UNEMPLOYMENT STATISTICS FOR THE STATE'S METROPOLITAN AREAS SO WHAT DO THE NUMBERS SHOW QUITE A BIT BUT YOU HAVE TO KNOW HOW TO READ THEM ALTHOUGH THE PRESS AND PUBLIC TEND TO FOCUS ON THE UNEMPLOYMENT RATE AS A WAY OF GAUGING THE ECONOMY'S HEALTH ECONOMISTS GENERALLY TAKE IT WITH A GRAIN OF SALT NOT ONLY ARE LOCAL UNEMPLOYMENT FIGURES EXTREMELY VOLATILE ON A MONTHTOMONTH BASIS BUT SOMETIMES THEY CAN LEAD TO FALSE CONCLUSIONS ABOUT WHAT'S REALLY HAPPENING FOR INSTANCE LOOKING AT UNEMPLOYMENT NUMBERS ALONE WOULD SUGGEST THAT THE MCALLEN AREA IS THE SICKEST IN THE STATE ROUGHLY 18 OF THE WORK FORCE DIDN'T HAVE A JOB IN FEBRUARY THAT'S TWICE THE UNEMPLOYMENT RATE OF TEXAS CITYGALVESTON BUT AS ANY CLOSE WATCHER OF THE TEXAS ECONOMY KNOWS MCALLEN BUOYED BY TWINPLANT GROWTH CONSTRUCTION AND TRADE WITH NEIGHBORING MEXICO IS ACTUALLY MORE DYNAMIC THAN THE TEXAS CITY REGION WHICH HAS BEEN HURT BY SLUGGISHNESS IN THE PETROCHEMICAL INDUSTRY AND IN FACT A SEPARATE SET OF STATISTICS MAINTAINED BY THE TEXAS EMPLOYMENT COMMISSION BEARS THIS OUT A SURVEY OF AREA COMPANIES INDICATES THAT THE TOTAL NUMBER OF PAYROLL JOBS IN MCALLENEDINBURGMISSION GREW AN EXPLOSIVE 72 BETWEEN FEBRUARY 1992 AND FEBRUARY 1993 COMPARED WITH AN ANEMIC 01 GAIN FOR TEXAS CITYGALVESTON ONE REASON FOR THE DISSONANCE MCALLEN'S BUSINESSES ARE GROWING SO FAST THAT THEY'RE ACTING LIKE MAGNETS FOR JOBSEEKERS FROM MEXICO WHO COME AND SWELL THE UNEMPLOYMENT RANKS BEFORE LANDING WORK OR MOVING ON THERE ARE ALSO SOME OTHER SHORTCOMINGS TO THE UNEMPLOYMENT DATA THAT BEAR WATCHING FOR STARTERS THE FEDERAL GOVERNMENT THIS YEAR IMPLEMENTED MAJOR CHANGES IN ITS HOUSEHOLD SURVEY A SAMPLING METHOD IT HAS USED SINCE 1940 TO COME UP WITH AN ESTIMATE OF THE US WORK FORCE AND THE UNEMPLOYMENT RATE AMONG OTHER THINGS THE BUREAU OF LABOR STATISTICS DETERMINED THAT THE QUESTIONS POSED TO RESPONDENTS DIDN'T DO A VERY GOOD JOB OF ELICITING THE EMPLOYMENT STATUS OF WOMEN TEENAGERS AND ELDERLY PEOPLE ECONOMISTS SAY THAT ALTHOUGH THE REVISIONS EVENTUALLY WILL PROVE HELPFUL THEY FIRST MAKE THE DATA HARDER TO INTERPRET BECAUSE THEY DON'T ALLOW FOR ANY HISTORICAL COMPARISON FOR INSTANCE IT'S IMPOSSIBLE TO SAY WITH CERTAINTY WHETHER TEXAS' FEBRUARY UNEMPLOYMENT RATE OF 76 REPRESENTED AN IMPROVEMENT OVER THE YEAREARLIER FIGURE OF 81 THEY'VE MADE CHANGES THAT ARE GOING TO GREATLY IMPROVE THE SERIES SO THAT'S A POSITIVE SAYS FIONA SIGALLA AN ECONOMIST AT THE FEDERAL RESERVE BANK OF DALLAS BUT THE CHANGES ALSO BREAK THE SERIES SO IN THE SHORT RUN THAT'S BAD AT THE LOCAL LEVEL THERE'S ANOTHER REASON FOR SKEPTICISM ABOUT THE HOUSEHOLDSURVEY DATA RESEARCHERS DON'T ACTUALLY CALL A REPRESENTATIVE SAMPLE OF HOUSEHOLDS IN EACH METROPOLITAN AREA THIS MEANS THAT LOCAL ESTIMATES MUST BE EXTRAPOLATED FROM THE STATEWIDE DATA THIS IS DONE VIA A 43STEP PROCESS THAT ATTEMPTS TO ACCOUNT FOR REGIONAL DIFFERENCES BY FOR INSTANCE TAKING INTO ACCOUNT LOCAL UNEMPLOYMENT CLAIMS AT BEST AN INEXACT SCIENCE ON THE OTHER HAND THE HOUSEHOLD SURVEY DOES PROVIDE SOME INFORMATION THAT CAN'T BE OBTAINED FROM OTHER EMPLOYMENT MEASUREMENTS BECAUSE IT CONTACTS PEOPLE AT HOME AS OPPOSED TO THE SOCALLED CURRENT EMPLOYMENT SURVEY WHICH TAKES DATA ON WAGE EARNERS FROM ESTABLISHED COMPANIES IT'S MORE LIKELY TO GET A FIX ON PEOPLE WHO OPERATE THEIR OWN BUSINESSES OR WHO WORK FOR COMPANIES THAT RECENTLY STARTED UP IT ALSO CAPTURES THE SMALL PORTION OF THE POPULATION THAT WORKS ON FARMS AND RANCHES THUS ACCORDING TO THE HOUSEHOLD SURVEY THERE WERE 85 MILLION PEOPLE EMPLOYED IN TEXAS IN FEBRUARY UP 4 FROM THE SAME MONTH A YEAR AGO THE CURRENT EMPLOYMENT SURVEY ON THE OTHER HAND SHOWED 76 MILLION TEXANS EMPLOYED IN NONAGRICULTURAL WAGE AND SALARY JOBS UP 33 FROM A YEAR EARLIER THESE DIFFERENCES CAN BECOME ACUTE ESPECIALLY IN TIMES OF ECONOMIC TURMOIL WHEN LOTS OF LAIDOFF PEOPLE ARE STARTING THEIR OWN COMPANIES OR WHEN BUSINESS IS REALLY BOOMING INDEED ONE REASON AUSTIN'S JOBGROWTH FIGURES FOR 1993 WERE REVISED UPWARD TO 63 FROM ABOUT HALF THAT WAS THAT THE CURRENT EMPLOYMENT SURVEY FAILED TO CATCH THE EXPLOSION IN NEW SMALLBUSINESS JOBS A SIMILAR PHENOMENON OCCURRED AT THE STATE LEVEL WHERE TEXAS WAGE AND SALARY JOB GROWTH WAS REVISED UPWARD TO 3 FROM ABOUT 2 EXPLAINS JAMES SMITH A FINANCE PROFESSOR AT THE UNIVERSITY OF NORTH CAROLINA SCRATCH A TEXAN AND YOU'LL FIND AN ENTREPRENEUR 9403230110 940323 BUSINESS BRIEF FIRST INTERSTATE PLANS A MAJOR INCREASE IN DIVIDEND PLUS SEVERAL OTHER MOVES FIRST INTERSTATE BANCORP IN A MOVE THAT COULD HELP FEND OFF BIDDERS SAID IT WILL SIGNIFICANTLY BOOST ITS DIVIDEND INCREASE A SHAREBUYBACK PROGRAM AND CUT COSTS BY RESTRUCTURING AND REDUCING ITS WORK FORCE FIRST INTERSTATE ONE OF THE NATION'S LARGEST BANK HOLDING COMPANIES WITH 515 BILLION IN ASSETS SAID IT WON'T RELEASE DETAILS ON ITS PLANNED JOB CUTS FOR TWO OR THREE WEEKS MANY OF THE CUTS WILL BE MADE THROUGH AN EARLYRETIREMENT PROGRAM WHICH WILL BE OFFERED TO EMPLOYEES IN COMING WEEKS SAID A SPOKESMAN FOR THE LOS ANGELES COMPANY HE SAID ABOUT 10 OF THE BANK'S 26000 EMPLOYEES ARE CURRENTLY ELIGIBLE FOR EARLY RETIREMENT WE'RE EVALUATING EVERYTHING HE SAID WHEN ASKED WHERE THE CUTS MIGHT TAKE PLACE DETAILS OF THE COSTREDUCTION PROGRAM INCLUDING THE AMOUNT OF A CHARGE FOR THE EARLYRETIREMENT PROGRAM WILL BE ANNOUNCED DURING THE THIRD QUARTER THE BANK SAID IT PLANS TO INCREASE ITS REVENUE 1 FASTER THAN THE RATE OF MARKET GROWTH IN EACH OF ITS MAJOR GEOGRAPHIC MARKETS IN 13 WESTERN STATES IT EXPECTS TO DO THIS THROUGH THE CROSSSELLING OF FINANCIAL PRODUCTS MORE CONSUMER LENDING AND ACQUISITIONS IT IS TARGETING BANKS THAT HAVE RETURNS ON EQUITY OF AT LEAST 18 AND POTENTIAL TO CUT OPERATING COSTS BY 50 FIRST INTERSTATE'S MOVES COME THREE WEEKS AFTER THE BANK SPURNED A MERGER OFFER FROM CROSSSTATE RIVAL WELLS FARGO & CO SAYING IT WANTED TO REMAIN INDEPENDENT IN A STATEMENT FIRST INTERSTATE'S CHAIRMAN AND CHIEF EXECUTIVE EDWARD M CARSON SAID THE STRATEGY IS PART OF A CONTINUING PLAN BEGUN IN 1990 WHILE WE ARE PLEASED WITH THE RESULTS TO DATE OUR MANAGEMENT AND BOARD OF DIRECTORS ARE COMMITTED TO GENERATING EVEN GREATER VALUE OVER THE NEXT FEW YEARS HE SAID ONE BIG FIRST INTERSTATE SHAREHOLDER INVESTMENT FIRM KOHLBERG KRAVIS ROBERTS & CO ALSO HOLDS A LARGE STAKE IN ANOTHER BANK FLEET FINANCIAL GROUP INC WHICH IMPOSED SIMILAR CHANGES IN RECENT WEEKS FIRST INTERSTATE AND KKR DECLINED TO COMMENT ON WHETHER KKR PLAYED A ROLE IN FIRST INTERSTATE'S NEWS YESTERDAY KKR HOLDS 82 OF FIRST INTERSTATE'S COMMON IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE FIRST INTERSTATE CLOSED AT 7450 UP 1625 OR 22 FIRST INTERSTATE'S DIVIDEND BOOST WILL BE ANNOUNCED ON APRIL 19 WHEN ITS BOARD OF DIRECTORS MEET THE CURRENT QUARTERLY DIVIDEND IS 50 CENTS A SHARE UNDER A NEW SHAREREPURCHASE PLAN THE BANK WILL INCREASE ITS PREVIOUSLY ANNOUNCED SHAREREPURCHASE PLAN TO 8 MILLION SHARES OR 97 OF ITS COMMON SHARES OUTSTANDING FROM 15 MILLION SHARES THE BUYBACK BEGINS IN JUNE 9403230109 940323 TECHNOLOGY & HEALTH CIBA IS CHALLENGING GLAXO'S ZANTAC PATENT A WALL STREET JOURNAL NEWS ROUNDUP SWISS DRUG GIANT CIBAGEIGY AG IS THE LATEST TO CHALLENGE THE US PATENT PROTECTION OF GLAXO HOLDINGS PLC'S FLAGSHIP ANTIULCER DRUG ZANTAC ONE OF THE WORLD'S BIGGESTSELLING DRUGS CIBAGEIGY LOOMS AS A FAR MORE FORMIDABLE ADVERSARY THAN SMALL CANADIAN AND GERMAN GENERIC COMPANIES THAT HAVE ATTEMPTED TO LAUNCH COPYCAT VERSIONS OF ZANTAC BUT US COURTS RECENTLY UPHELD ZANTAC'S PATENTS AND ANALYSTS SAID THERE'S SCANT EVIDENCE SO FAR TO SUGGEST THE SWISS ASSAULT WILL FARE BETTER INDEED GLAXO ITSELF DISCLOSED THAT CIBAGEIGY'S US UNIT GENEVA PHARMACEUTICALS INC HAD FILED A SOCALLED ABBREVIATED NEWDRUG APPLICATION FOR A GENERIC VERSION OF ZANTAC WITH THE US FOOD AND DRUG ADMINISTRATION SUCH A FILING IS THE USUAL ROUTE TO APPROVAL FOR A GENERIC PRODUCT ALLOWING THE APPLICANT TO DISPENSE WITH MOST OF THE EXPENSIVE TIMECONSUMING CLINICAL TRIALS REQUIRED FOR CLEARANCE OF A NEW DRUG THE PROCEDURE ALSO REQUIRES THE GENERIC APPLICANT TO PLEDGE THAT IT WON'T MARKET ITS PRODUCT PRIOR TO EXPIRATION OF THE ORIGINAL DRUG'S PATENT IN THIS CASE THAT'S THE SOCALLED FORM ONE PATENT ON RANITIDINE HYDROCHLORIDE ZANTAC'S ACTIVE INGREDIENT WHICH EXPIRES IN THE US IN DECEMBER 1995 IN A STATEMENT GLAXO SAID IT IS CONSIDERING ALL POSSIBLE COURSES OF ACTION INCLUDING LEGAL PROCEEDINGS AGAINST GENEVA PHARMACEUTICALS 9403230108 940323 WHO'S NEWS MORRISON KNUDSEN WOOS RIVAL'S OFFICIAL TO HEAD NEW UNIT BOISE IDAHO MORRISON KNUDSEN CORP SAID IT WOOED AWAY AN EXECUTIVE FROM ITS LARGEST COMPETITOR TO BE THE NEW PRESIDENT AND CHIEF OPERATING OFFICER OF ITS NEWLY FORMED MK TRANSIT UNIT LARRY E SALCI 47 YEARS OLD WAS PREVIOUSLY PRESIDENT OF BOMBARDIER INC MONTREAL MK TRANSIT MAKES TRANSIT CARS FOR COMMUTER RAILS AND MUNICIPAL SUBWAY SYSTEMS MICHAEL J FARRELL 44 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE NEWLY FORMED MK RAIL CORP HE WAS PREVIOUSLY PRESIDENT AND CHIEF EXECUTIVE OF THE COMPANY'S PITTSBURGHBASED MOTOR COILS MANUFACTURING CO MORRISON KNUDSEN ALSO NAMED THOMAS J SMITH 53 YEARS OLD CHIEF EXECUTIVE OF THE NEWLY FORMED MK RAIL CORP'S LATIN AMERICAN GROUP HE WAS PREVIOUSLY PRESIDENT OF THE COMPANY'S RAIL SYSTEMS GROUP SEPARATELY THE ENGINEER CONTRACTOR AND MANUFACTURING COMPANY SAID IT WON A CONTRACT VALUED AT MORE THAN 200 MILLION TO OVERHAUL AND MAINTAIN 278 FREIGHT LOCOMOTIVES FOR THE ATCHISON TOPEKA AND SANTA FE RAILWAY CO SHAUMBURG ILL 9403230107 940323 TECHNOLOGY & HEALTH VENDORS OF UNIX SYSTEM TO COORDINATE PRODUCTS THE MAJOR VENDORS OF THE UNIX OPERATING SYSTEM SOFTWARE AGREED YESTERDAY TO WORK ON MAKING THEIR PRODUCTS COMPATIBLE WITH EACH OTHER MARKING AN END TO A LONGSTANDING SCHISM IN THE INDUSTRY THE AGREEMENT CAME AS SEVERAL NEW COMPANIES INCLUDING SUN MICROSYSTEMS INC AGREED TO JOIN THE OPEN SOFTWARE FOUNDATION AN INDUSTRY GROUP UNIX IS THE OPERATING SYSTEM THAT RUNS ON WORKSTATIONS THERE ARE CURRENTLY ABOUT HALF A DOZEN DIFFERENT VERSIONS OF UNIX ON THE MARKET DOWN FROM ABOUT 200 SIX YEARS AGO IN A NEWS RELEASE THE OPEN SOFTWARE FOUNDATION CALLED THE NEW ALLIANCE A NEW ERA OF COOPERATION 9403230106 940323 INTERNATIONAL OLIVETTI VENTURE WITH REDGATE MILAN ITALIAN INFORMATION SYSTEMS AND COMMUNICATION COMPANY ING C OLIVETTI & CO SPA SAID IT FORMED A MEDIA AND COMMUNICATIONS JOINT VENTURE WITH US COMPANY REDGATE COMMUNICATIONS THE JOINT VENTURE TO BE CALLED REDGATE OLIVETTI COMMUNICATIONS WILL BE 51CONTROLLED BY OLIVETTI AND 49CONTROLLED BY REDGATE OLIVETTI SAID THE VENTURE WILL OPERATE IN NEWMEDIA SERVICES AND APPLICATIONS DEVELOPMENT THE NEWMEDIA MARKETS IN WHICH COMPUTING TELECOMMUNICATIONS TELEVISION AND INFORMATION SERVICES CONVERGE ARE EXPECTED TO BE WORTH AN ESTIMATED 10 BILLION IN EUROPE IN 1996 9403230105 940323 PREMIER BANCORP ACQUISITION BATON ROUGE LA PREMIER BANCORP INC SAID IT REACHED A DEFINITIVE AGREEMENT TO BUY RED RIVER VALLEY BANK OF BOSSIER LA FOR AT LEAST 258 MILLION UNDER TERMS OF THE DEAL WHICH IS SUBJECT TO SHAREHOLDER AND REGULATORY APPROVAL RED RIVER SHAREHOLDERS WILL RECEIVE ABOUT 51 SHARES OF PREMIER STOCK FOR EACH SHARE OF RED RIVER PREMIER SAID IT EXPECTS THE VALUE OF THE DEAL TO RANGE FROM 258 MILLION TO 285 MILLION AS OF DEC 31 RED RIVER HAD TOTAL ASSETS OF 1379 MILLION AND TOTAL EQUITY OF 139 MILLION SEPERATELY PREMIER SAID IT REACHED A DEFINITIVE AGREEMENT TO BUY HERITAGE FINANCIAL CORP RUSTON LA 9403230104 940323 INTERNATIONAL EXMETALLGESELLSCHAFT CHIEF VOWS A FIGHT AMID GROWING FALLOUT FROM DEBACLE BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL PARIS HEINZ SCHIMMELBUSCH SAYS HE'S READY TO FIGHT BACK IF HE DOES THE SCRAPE COULD PROVIDE A REVEALING LOOK INTO THE INFIGHTING EGOS AND CHAIN OF EVENTS THAT SHAPED WHAT IS PERHAPS GERMANY'S WORST CORPORATE DISASTER SINCE WORLD WAR II MR SCHIMMELBUSCH IS THE FORMER CHIEF EXECUTIVE OFFICER OF METALLGESELLSCHAFT AG THE GERMAN CORPORATE GIANT THAT WAS BROUGHT TO THE BRINK OF COLLAPSE BY HUGE OILFUTURES TRADING LOSSES BY ITS AMERICAN SUBSIDIARY LAST YEAR ON DEC 17 MR SCHIMMELBUSCH WAS FIRED BY THE SUPERVISORY BOARD WHICH WAS LED BY DEUTSCHE BANK AG EXECUTIVE RONALDO SCHMITZ SINCE THEN HE HAS FOUND HIMSELF VIRTUALLY UNEMPLOYABLE SHUNNED BY FORMER COLLEAGUES AND HOUNDED BY ANONYMOUS DEATH THREATS HE BELIEVES THERE IS A MOVE AFOOT TO BRAND HIM CRIMINALLY LIABLE FOR THE METALLGESELLSCHAFT DISASTER AFTER RECOVERING FROM A RECENT HEART AILMENT AND PONDERING WHETHER TO SIMPLY FADE AWAY MR SCHIMMELBUSCH SAYS HE IS NOW DETERMINED TO DEFEND HIMSELF SLOWLY I'M BEGINNING TO REALIZE THAT ALTHOUGH I DON'T WANT TO IT'S BEING FORCED ON ME MR SCHIMMELBUSCH SAYS INDEED THE WHOLE MESS SEEMS SOON DESTINED FOR COURT MG'S SUPERVISORY BOARD SAID FRIDAY IT IS PREPARING TO SUE MR SCHIMMELBUSCH AND HIS FORMER FINANCE DIRECTOR MEINHARD FORSTER FOR DAMAGES RELATED TO THEIR ALLEGED INVOLVEMENT IN RISKY OIL DEALINGS AT METALLGESELLSCHAFT'S US SUBSIDIARY MG CORP THE ANNOUNCEMENT CAME ALONG WITH A 15PAGE SUMMARY OF AN INDEPENDENT AUDITOR'S REPORT DETAILING THE SHARP RISE IN OILFUTURES TRADING THAT CAUSED 12 BILLION IN LOSSES BETWEEN OCTOBER 1992 AND DECEMBER 1993 PUTTING 55000 JOBS AT STAKE AND REQUIRING A 34 BILLION MARK 2 BILLION BANK RESCUE IN JANUARY ESSENTIALLY THE AUDITORS SAY THE US SUBSIDIARY IN AN EFFORT TO GAIN A FOOTHOLD IN THE US OIL MARKET OFFERED ATTRACTIVE FIXEDRATE CONTRACTS TO CUSTOMERS WHILE HEDGING ITS SALES OBLIGATIONS BY BUYING FUTURES CONTRACTS ON THE NEW YORK MERCANTILE EXCHANGE FOR MG CORP NOMINALLY A METALS CONCERN WITH OILTRADING INTERESTS DATING BACK ONLY TO 1991 THE GAMBIT MISFIRED DRASTICALLY NOW THE GERMAN PARENT COMPANY CONTENDS THAT MR SCHIMMELBUSCH MISLED METALLGESELLSCHAFT'S BOARD AS TO MG CORP'S EXPOSURE AND LOSSES IN ITS FUTURES TRADING MR SCHIMMELBUSCH DENIES ANY WRONGDOING HE SAYS HE HAD NO KNOWLEDGE OF THE RISING RISK IN THE OILTRADING OPERATIONS UNTIL RECEIVING THE LIQUIDITY CALL FROM MG CORP AFTER A NOV 19 SUPERVISORY BOARD MEETING IN WHICH HE WAS STILL ASSUMING THAT MG CORP WAS ON SOLID FINANCIAL GROUND WHATEVER THE CASE THE MATTER HAS GROWN NASTY AND PROMISES TO GET NASTIER STILL MR SCHIMMELBUSCH IS THE OBJECT OF A CRIMINAL INVESTIGATION BEING LED BY THE FRANKFURT PROSECUTOR'S OFFICE IN RESPONSE TO A SHAREHOLDER'S COMPLAINT AFTER MG'S STOCK PRICE FELL NEARLY 50 LAST YEAR AUTHORITIES SAY THE FORMER METALLGESELLSCHAFT CHIEF IS SUSPECTED OF BREACH OF TRUST AND OF WITHHOLDING INFORMATION FROM THE COMPANY'S SUPERVISORY BOARD EARLIER THIS MONTH INVESTIGATORS SEIZED FILES FROM METALLGESELLSCHAFT'S OFFICES AND SEARCHED MR SCHIMMELBUSCH'S FRANKFURT HOME MR SCHIMMELBUSCH ASSERTS THAT MANY OF HIS PROBLEMS STEM FROM LONGSTANDING MANAGEMENT DISAGREEMENTS WITH MR SCHMITZ OF DEUTSCHE BANK DISAGREEMENTS HE NOW CHARACTERIZES AS A PERSONAL FEUD IF PUSHED INTO A CORNER HE CRYPTICALLY PROMISES A SPIRITED DEFENSE OF HIS ACTIONS WHILE SHINING A LIGHT ON THE ROLE OF HIS ADVERSARIES IT'S ALL GOING TO COME OUT HE PROMISES POINTING A FINGER IN THE AIR INDEED SOME CAUGHT UP IN METALLGESELLSCHAFT'S PURGE ALONG WITH MR SCHIMMELBUSCH HAVE ALREADY BEGUN TO RETURN FIRE IN THE US W ARTHUR BENSON THE FORMER PRESIDENT OF MG'S US OIL TRADING UNIT HAS FILED A 1 BILLION LAW SUIT IN BALTIMORE'S US DISTRICT COURT AGAINST METALLGESELLSCHAFT AND DEUTSCHE BANK SEEKING DAMAGES FOR ALLEGED DEFAMATION AND CIVIL CONSPIRACY MR BENSON WHO WAS FIRED IN FEBRUARY ALLEGES THAT HIS EFFORTS TO STEM THE OILTRADING LOSSES WERE UNDERMINED BY BYZANTINE MANEUVERINGS TO DISCREDIT MR SCHIMMELBUSCH BOTH CONCERNS HAVE DENIED THOSE ALLEGATIONS STILL SOME OBSERVERS BELIEVE THAT FALLOUT FROM THE MG DEBACLE COULD BE MORE DAMAGING TO GERMANY'S CORPORATE IMAGE THAN THE COMPANY'S NEAR COLLAPSE WAS LAST WINTER METALLGESELLSCHAFT IS PART OF AN INTERLOCKING GERMAN SYSTEM OF CROSS HOLDINGS AND BOARD SEATS AMONG INDUSTRY AND BANKS THAT ASSERTS POWERFUL INFLUENCE ON GERMAN BUSINESSES SOMETIMES WORKING TO OUST MANAGEMENT WHEN IT HAS DISAGREEMENTS DETAILED GLIMPSES INTO THAT SYSTEM ARE RARE THE AUDIT REPORT PUBLISHED LAST FRIDAY PROVIDES SOME HERETOFORE UNREPORTED DETAILS OF THE OILTRADING LOSS THAT DROVE METALLGESELLSCHAFT TO THE BRINK OF INSOLVENCY AND FORCED DEUTSCHE BANK DRESDNER BANK AG AND A CONSORTIUM OF 120 BANK CREDITORS TO THROW TOGETHER A MASSIVE RESCUE OPERATION ACCORDING TO THE AUDIT MR SCHIMMELBUSCH TURNED TO DEUTSCHE BANK FOR HELP DEC 3 WHICH MR SCHMITZ LATER CLAIMED WAS THE FIRST TIME HE OR THE SUPERVISORY BOARD HEARD OF REAL PROBLEMS FACING MG'S OILTRADING OPERATION MR SCHMITZ SAID HE HAD CALLED MR FORSTER TWO DAYS EARLIER ASKING ABOUT RUMORS IN THE OIL MARKETS THAT MG WAS IN TROUBLE ACCORDING TO MR SCHMITZ MR FORSTER EXPRESSED SURPRISE ON DEC 6 MG ANNOUNCED ADJUSTMENTS TO ITS PREVIOUS CREDIT LINES WITH DEUTSCHE BANK AND DRESDNER BANK TO HELP COVER EXPOSURE IN OIL MARKETS BUT SOON STOCK ANALYSTS WERE PUBLICLY SPECULATING THAT METALLGESELLSCHAFT'S LOSSES COULD TOP 1 BILLION AND THE SCARE WAS ON SENDING MG'S STOCK PRICE DOWN 50 AND ROILING WORLD OIL AND METALS MARKETS THE AUDITOR'S REPORT ASSERTS THAT MR FORSTER KNEW OF THE WORSENING SITUATION LAST SUMMER MR FORSTER HASN'T RESPONDED TO THE ALLEGATIONS AND COULDN'T BE REACHED TO COMMENT THE REPORT WAS LESS CONCLUSIVE ON WHAT MR SCHIMMELBUSCH AND OTHER BOARD MEMBERS KNEW OR WHEN THEY KNEW IT THE REPORT ALLEGED THAT MR SCHIMMELBUSCH AND OTHER MG MANAGEMENT BOARD MEMBERS HAD ACCESS TO DOCUMENTS LAST SUMMER SHOWING RISING LOSSES UNREALIZED EARNINGS AND GROWING NET LIABILITIES MR SCHIMMELBUSCH SAYS HE BECAME CONCERNED LAST SEPTEMBER THAT THE VOLUMES OF THE UNIT'S OIL BUSINESS WERE BECOMING TOO HIGH BUT THERE WAS NO DISCUSSION OF LOSSES BECAUSE THERE WEREN'T ANY AS OF LAST SUMMER HE SAYS HANSWERNER NOLTING AN MG BOARD MEMBER WHO SURVIVED THE DECEMBER MANAGEMENT PURGE JOINED MR SCHIMMELBUSCH IN DENYING THE AUDIT'S CONTENTION THAT MG CORP'S MANAGEMENT BOARD WAS AWARE LAST SUMMER THAT MG CORP WAS HEADED FOR FINANCIAL DIFFICULTY AS OF AUGUST MR NOLTING SAID MG CORP'S INTERNAL ACCOUNTING SHOWED A SMALL PROFIT AND DECLINING BUSINESS VOLUMES AND FUNDING REQUIREMENTS THE SPECIAL AUDIT'S REPORT ON THIS TIME PERIOD IS THUS INCOMPREHENSIBLE TO ME MR NOLTING SAID IN A RECENT INTERVIEW MR SCHIMMELBUSH IN INTERVIEWS ALSO SAYS THAT FAR FROM KEEPING THE US SUBSIDIARY'S OIL TRADING OPERATIONS UNDER WRAPS MG CORP OFFICIALS BRIEFED MR SCHMITZ ON THEM AT A JULY 23 MEETING IN NEW YORK MR SCHIMMELBUSCH WASN'T AT THAT MEETING MR SCHMITZ COULDN'T BE REACHED TO COMMENT FOR THIS ARTICLE BUT MR SCHMITZ WHO IS FAMILIAR WITH OIL TRADING FROM HIS EARLIER CAREER AT BASF AG HAS PREVIOUSLY SAID HIS MG CORP BRIEFINGS DIDN'T TOUCH ON THE GROWING RISK ACCORDING TO MR SCHIMMELBUSCH MR SCHMITZ WAS SKEPTICAL OF MG'S OIL POSITIONS OPENING A DIFFERENCE OF OPINION BETWEEN THE TWO EXECUTIVES MR SCHMITZ'S CAUTION RESULTED IN A SECOND AUDIT OF MG CORP'S BOOKS FOR ITS FISCAL YEAR ENDED SEPT 30 1993 BY KPMG PEAT MARWICK IN ADDITION TO THE REGULAR AUDIT BY ARTHUR ANDERSON MR SCHIMMELBUSCH ASSERTS THAT BOTH AUDITS CONFIRMED THAT MG CORP WAS NOT IN FINANCIAL DANGER AND WAS ACTUALLY SHOWING A SMALL PROFIT WHICH HE DUTIFULLY REPORTED TO THE MG SUPERVISORY BOARD AT ITS MEETING ON NOV 19 9403230103 940323 GASONICS SELLS SHARES SAN JOSE CALIF GASONICS INTERNATIONAL CORP SAID IT SOLD 22 MILLION COMMON SHARES AT 13 EACH DURING ITS INITIAL PUBLIC OFFERING OF THE TOTAL 1350000 SHARES WERE SOLD BY THE COMPANY AND 850000 BY SELLING HOLDERS IN ADDITION UNDERWRITERS HAVE AN OPTION TO PURCHASE AS MANY AS 330000 ADDITIONAL SHARES TO COVER ANY OVERALLOTMENTS AFTER THE OFFERING THE COMPANY HAS 8065000 SHARES OUTSTANDING THE OFFERING WAS COMANAGED BY MONTGOMERY SECURITIES AND HAMBRECHT & QUIST INC PROCEEDS WILL BE USED TO REPAY DEBT AND FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES GASONICS DEVELOPS AND SUPPLIES EQUIPMENT USED TO FABRICATE ADVANCED INTEGRATED CIRCUITS 9403230102 940323 IPSCO PICKS IOWA AGAIN FOR MILL REGINA SASKATCHEWAN IPSCO INC SAID IT ONCE AGAIN SETTLED ON MUSCATINE COUNTY IOWA AS THE SITE FOR ITS PROPOSED 360 MILLION STEEL MINIMILL THE STEELMAKER BASED IN REGINA HAD PREVIOUSLY CHOSEN IOWA TO BUILD THE MINIMILL BUT THE COMPANY REVERSED THE DECISION LAST MONTH SAYING IT WOULD CONSIDER TWO OTHER STATES WHERE LEGISLATION WASN'T REQUIRED TO PURCHASE THE LAND WHERE THE MINIMILL WOULD BE BUILT THE STATES WEREN'T IDENTIFIED IPSCO SAID A FINAL DECISION TO BUILD THE MINIMILL IN IOWA STILL DEPENDS ON THE STATE GOVERNMENT DESIGNATING THE SITE A QUALITY JOBS ENTERPRISE ZONE AND OTHER CONDITIONS 9403230101 940323 TECHNOLOGY & HEALTH SUPERFUND REPORT MAY GIVE A BOOST TO CLINTON'S EFFORTS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A NEW REPORT BY THE CONGRESSIONAL BUDGET OFFICE MAY BOOST THE CLINTON ADMINISTRATION'S EFFORTS TO GET CONGRESS TO REWRITE THE SUPERFUND POLLUTIONCLEANUP LAW ACCORDING TO THE REPORT LITIGATION AND NEGOTIATION ARE THE MAIN FACTORS DELAYING SUPERFUND CLEANUP AT 30 OF THE SLOWESTTORESTORE HAZARDOUSWASTE SITES THE FINDING APPEARS TO SUPPORT PRESIDENT CLINTON'S CONTENTION THAT THE EXISTING SUPERFUND PROGRAM PROMOTES LITIGATION AT THE EXPENSE OF CLEANUP UNDER THE CLINTON PLAN INDIVIDUAL COMPANIES WOULD BE ASSIGNED LIABILITY FOR HAZARDOUSWASTE CLEANUP THROUGH A NEW ALLOCATION PROCESS INTENDED TO BYPASS THE COURTS A NEW TAX ON INSURERS WOULD BE USED TO CREATE A FUND TO SETTLE SUPERFUNDRELATED LAWSUITS BETWEEN POLLUTING BUSINESSES AND THEIR INSURERS THE CBO STUDY SURVEYED ENVIRONMENTAL PROTECTION AGENCY OFFICIALS ABOUT THE 273 SUPERFUND SITES WHERE CLEANUP HAS BEEN SLOWEST THE MOST FREQUENT REASONS FOR DELAY WERE SITESPECIFIC PROBLEMS SUCH AS COMPLEXITY OF THE JOB OR SIZE OF THE SITE WHICH WAS FOUND TO BE THE MAIN REASON FOR DELAY AT 39 OF THE SITES LITIGATION AND NEGOTIATION WERE NEXT THE MOST FREQUENT ISSUE IN DELAYCAUSING LITIGATION OR NEGOTIATION WAS WRANGLING BETWEEN THE EPA AND THE POLLUTING BUSINESS OVER WHO SHOULD PERFORM THE CLEANUP THE SURVEY FOUND ALTHOUGH CLINTON ADMINISTRATION OFFICIALS SAY LAWSUITS INVOLVING INSURERS ARE A MAJOR CONTRIBUTOR TO LITIGATION COSTS THEY WEREN'T CITED IN THE SURVEY AS A MAIN REASON FOR DELAY OF THE TOTAL 1249 SUPERFUND SITES CLEANUP TAKES AN AVERAGE OF 12 TO 15 YEARS THE SURVEY FOUND BUT IT SAID THE 60 OF SUPERFUND SITES LISTED SINCE 1983 WILL BE COMPLETED MUCH MORE QUICKLY THAN THOSE LISTED BETWEEN 1981 AND 1983 BUSINESS HAS BEEN CAUTIOUSLY SUPPORTIVE OF THE CLINTON PLAN BUT ENVIRONMENTALISTS CONCERNED THAT THE BILL MAY WEAKEN CLEANUP STANDARDS AND THE POLLUTER PAYS PRINCIPLE ARE INCREASINGLY CRITICAL SUPERFUND LEGISLATION WILL PROBABLY HAVE TO BE KILLED WROTE NATURAL RESOURCES DEFENSE COUNCIL ERIK OLSON IN A MARCH 5 MEMO TO ENVIRONMENTAL GROUPS THAT WAS LEAKED TO MEMBERS OF CONGRESS LAST WEEK MR OLSON SAID HIS MEMO WAS SENT AROUND AS A PROPOSAL FOR PEOPLE TO DISCUSS AND DIDN'T REPRESENT OFFICIAL POLICY 9403230100 940323 TEXAS JOURNAL JACKPOT TALES OF LOTTERY WINNERS PAST SUDDEN MILLIONAIRES TELL OF LIVES CHANGED AND LESSONS LEARNED BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL WHAT WOULD YOU DO WITH A MILLION DOLLARS THAT'S THE QUESTION POSED EVERY WEDNESDAY AND SATURDAY AS TEXANS AWAIT THE TELEVISED DROPPING OF 50 NUMBERED PINGPONG BALLS HOLDING THEIR BREATH TO SEE WHETHER THEIR LIVES ARE ABOUT TO BE FOREVER ALTERED LAST WEEK FIVE GROUPS OF PEOPLE SHARED IN THE BIGGEST JACKPOT IN TEXAS HISTORY TOTALING 771 MILLION AT BEAUTY SALONS AND SHOESHINE STANDS IN BOARDROOMS BATHROOMS AND BEDROOMS EVERYONE HAS BEEN TALKING OF PICKING THE SIX WINNING LOTTO TEXAS NUMBERS BUT WHAT IF YOU DID STRIKE IT RICH WHAT WOULD YOU DO WITH A MILLION DOLLARSOR MORE TO FIND OUT HOW PAST WINNERS HAVE HANDLED THEIR WINDFALL TEXAS JOURNAL TRACKED DOWN A FEW OF THE MORE THAN 120 PEOPLE MADE MILLIONAIRES BY LOTTO TEXAS AND THE TEXAS LOTTERY'S INSTANTWIN SCRATCHOFF TICKETS HERE ARE THEIR STORIES NEVER TELL THE PRESS YOU'RE INTERESTED IN EMU RANCHING BOY I MADE THAT MISTAKE SAYS EMMETT NEAL JR RECALLING HIS OFFHAND COMMENT TO REPORTERS WHO ASKED WHAT HE PLANNED TO DO WITH ALL THAT MONEY I GOT PEOPLE FROM ALL OVER TEXAS SENDING ME INFORMATION AND TRYING TO GET ME TO BUY EMUS AND OSTRICHES ALL THE MAIL ON EMUS MUST WEIGH 20 POUNDS DEALING WITH EMU ENTHUSIASTS WAS JUST ONE OF MANY CHANGES THAT THE 39YEAROLD MR NEAL HAS HAD TO ADJUST TO BEFORE STRIKING THE MOTHER LODE LAST YEAR MR NEAL WHO IS DIVORCED WAS EARNING JUST 13000 ANNUALLY AS A COOK AT A RED LOBSTER RESTAURANT IN LUBBOCK WHERE HE HAD WORKED FOR 16 YEARS THE DAY HE WON THE LOTTO HE QUIT AND IN THE TIME IT TOOK TO ENDORSE HIS CHECK MR NEAL JUMPED FROM THE LOWEST TAX BRACKET TO THE HIGHEST TODAY THE FEDERAL GOVERNMENT DEMANDS 396 OF HIS ANNUAL INCOME A PERCENTAGE HE CONSIDERS OUTRAGEOUS MY FAVORITE CHARITY SINCE WINNING HE SAYS HAS BEEN THE REPUBLICAN PARTY FOR MR NEAL BEING THRUST INTO SUCH A HIGH INCOME BRACKET WAS SOBERING HE HAD NEVER GIVEN MUCH THOUGHT TO INVESTING AND SUDDENLY HE WAS SWAMPED WITH ADVICE INVEST IN GOLD SILVER PLATINUM AND PALLADIUM DEALS HE WAS TOLD AND MAKE MILLIONS MORE INVEST IN A BAR INVEST IN A CARWASH BEWILDERED HE DIDN'T DO ANYTHING LETTING HIS FIRST 393000 SIT IN HIS ACCOUNT AT FIRST NATIONAL BANK OF LUBBOCK FOR SEVERAL MONTHS BUT BECAUSE BANKS ONLY INSURE DEPOSITS UP TO 100000 I WAS PARANOID THAT SOMETHING MIGHT HAPPEN TO THE BANK AND I WOULD LOSE MY MONEY HE SAYS ON THE ADVICE OF THE TEXAS LOTTERY COMMISSION HE HIRED AN ACCOUNTANT AND AN INVESTMENT ADVISER THROUGH HIS BANK'S TRUST DEPARTMENT HE ESTABLISHED A BROKERAGE ACCOUNT INTO WHICH HE MOVED 200000 OF HIS FIRST CHECK AFTER BUYING HIS DAD A VAN HIMSELF A HOUSE AND 332 ACRES OF LAND ON WHICH HE RUNS 35 HEAD OF CATTLE AND GROWS SORGHUM TO ATTRACT THE BIRDS HE LIKES TO HUNT THOUGH HE HAS NEVER BEFORE ROPED CATTLE OR PLANTED FIELDS I'VE NOW GOT THE TIME TO THROW AT IT HE SAYS MR NEAL'S INVESTMENT ADVISER STEVE EXTER IN LUBBOCK HAS DIVIDED THE MONEY AMONG MUNICIPAL BONDS GROWTH FUNDS AND BLUECHIP STOCKS MR NEAL'S GOAL IS TO CONTRIBUTE 200000 ANNUALLY TO HIS INVESTMENT ACCOUNT WHILE LEARNING THE WAYS OF WALL STREET I'VE READ THE HORROR STORIES OF THE PEOPLE WHO TRUSTED THEIR MONEY TO OTHERS AND LOST IT ALL HE SAYS I DON'T WANT TO BE LIKE THAT IF THERE'S ANY LESSON LINDA AND JIM YORK HAVE LEARNED IT'S THIS FRIENDS AND MONEY DON'T MIX WHEN THE YORKS BOTH 51 YEARS OLD PICKED UP THE FIRST OF THEIR 20 ANNUAL 121000 CHECKS A FRIEND APPROACHED WITH A BUSINESS PROPOSITION FOR 30000 HE WOULD BRING THEM IN AS PARTNERS IN THE TWO FEED STORES HE OWNED TWOTHIRDS OF THE MONEY HE SAID WOULD PAY OFF THE STORES' DEBTS WHILE THE REMAINING THIRD WOULD BE PUMPED BACK INTO THE OPERATION THE YORKS WHO LIVE NEAR FORT WORTH AGREED IN PART BECAUSE IT WOULD GIVE MR YORK UNTIL THEN A HOME REMODELER ENTRY INTO THE CATTLE BUSINESS LONG HIS FATHER'S LINE OF WORK BUT THE YORKS SAY THE BILLS WEREN'T PAID OFF AS EXPECTED THEN THINGS GOT MESSY WITH THREATS OF LAWSUITS AND PLENTY OF BAD FEELINGS ON BOTH SIDES THE YORKS HAVE ENDED UP TAKING CONTROL OF ONE OF THE FEED STORES WHILE THEY TRY TO NEGOTIATE A SETTLEMENT DO NOT DEAL ON BUSINESS TERMS WITH FRIENDS AND RELATIVES SAYS MRS YORK WHO REFERS TO THEIR PARTNER AS HER HUSBAND'S EXBEST FRIEND STILL THE INVESTMENT ISN'T A TOTAL LOSS THE YORKS USE THE TAX BENEFITS FROM THE FEED STORES AND MR YORK GETS A BREAK WHEN BUYING FEED WITH WHICH TO FATTEN THE CATTLE HE TRADES AS PART OF HIS NEW BUSINESS MOREOVER THE COUPLE IS HAPPY WITH THEIR ONE OTHER INVESTMENT SO FAR A MODEST 185000 HOME BUILT ON 30 ACRES OF LAND ALTHOUGH THE YORKS QUIT THEIR JOBS AS REMODELERS ABOUT A MONTH AFTER WINNING THE LOTTERY MRS YORK'S DAYS ARE STILL FILLED WITH WALLPAPER AND DRYWALL SHE'S REMODELING HER NEW HOME THROUGH THEIR INVESTMENTS IN THE HOUSE AND THE FEED STORE THE YORKS MANAGED TO BURN THROUGH THEIR ENTIRE CHECK LAST YEAR THE SPENDING HAS SINCE SLOWED THEY EXPECT THIS YEAR THEY WILL ONLY USE ABOUT 80000 STILL NEARLY 50 MORE THAN THEIR ENTIRE INCOME THE YEAR BEFORE THEY STRUCK IT RICH WE FIGURED WE WOULD SPEND FIVE YEARS GETTING OUT OF THE WAY ALL THE THINGS WE WANT TO DO LIKE BUILDING A HOUSE STARTING A BUSINESS AND VISITING MY DAUGHTER IN GERMANY MRS YORK SAYS AFTER THAT SAVE AS MUCH AS WE CAN EVERY YEAR TO THAT END THEY'RE NOW LOOKING TO AN ESTATE PLANNER TO HELP THEM SET UP ANNUITIES TO PROVIDE FOR THEIR RETIREMENT YEARS AND TO ESTABLISH TRUSTS FOR THEIR EIGHT CHILDREN AND DON'T TELL MRS YORK THAT WINNING MILLIONS PUTS YOU ON EASY STREET YOU MIGHT BE ABLE TO DO MORE IN LIFE BUT YOU HAVE EXACTLY THE SAME WORRIES AND THE SAME BILLS SHE SAYS IT'S JUST THAT YOUR BILLS NOW HAVE MORE ZEROS ON THE END DICK SHANKLIN'S INTERESTS HAVEN'T CHANGED ALL THAT MUCH SINCE HE PENCILED IN THE SIX NUMBERS THAT NOW EARN HIM MORE THAN A QUARTER MILLION DOLLARS A YEAR 3 18 27 36 41 43 IT'S JUST THAT NOW HE CAN PURSUE THEM ON A GRANDER SCALE THE MONEY FOR INSTANCE HAS LET HIM ADD TO HIS INVESTMENT PORTFOLIO HE ALREADY HAD MORE THAN 300000 OF STOCK BUY MORE OLD CARS HE HAD 13 CLASSIC OLDSMOBILES CADILLACS AND LINCOLNS AND BUILD HIS DREAM HOME A 1 MILLION 5080SQUAREFOOT HOUSE IN FASHIONABLE COLLEYVILLE IT WAS A MONDAY WHEN MR SHANKLIN RECEIVED VERIFICATION THAT HIS LOTTERY TICKET WAS A WINNER ON TUESDAY HE QUIT HIS JOB AS AN ENGINEER AT A DALLASAREA TELEVISION STATION TODAY THE LIFELONG BACHELOR SPENDS HIS TIME RESTORING HIS FLEET OF OLD CARS AND MEETING WITH CONTRACTORS AND DESIGNERS PUTTING TOGETHER HIS NEW HOME MUCH OF HIS FIRST CHECK WENT TO FAMILY AND FRIENDS AS WELL AS TO BUY THE 205000 LOT ON WHICH HE'S BUILDING HIS HOUSE THEN THERE WERE THE AUTOMOBILE PURCHASES A NEW CADILLAC SEDAN DEVILLE AND A JAGUAR XJ6 AFTER PAYING TAXES AND 128000 IN ANNUAL MORTGAGE PAYMENTS THE 48YEAROLD MR SHANKLIN HAS ABOUT 110000 A YEAR ON WHICH TO LIVE ABOUT HALF OF WHICH GOES INTO THE STOCK MARKET BETWEEN 10 AND 15 A WEEK GOES TO BUYING LOTTERY TICKETS HE EXPECTS TO PAY OFF HIS HOME LOAN BEFORE HE HAS RECEIVED HALF OF HIS 20 ANNUAL CHECKS ALLOWING HIM TO INVEST MORE AS HE CLOSES IN ON RETIREMENT HIS INVESTMENT DECISIONS THUS FAR HAVE COME FROM HIS OWN RESEARCH IN FINANCIAL MAGAZINES AND NEWSPAPERS BUT TO A LARGE DEGREE HIS EQUITY INVESTMENTS HAVE BEEN LIMITED TO TELECOMMUNICATIONS STOCKS SAYS MR SHANKLIN WHO HAD SPENT 23 YEARS IN THE BUSINESS I'M INVESTING IN WHAT I KNOW HOW MUCH REALLY 720000 AFTER WITHHOLDING TAXES BEFORE A SCRATCHOFF TICKET CALLED MILLIONAIRE MADE ONE OF SAN ANTONIO'S JERRY HOCKMAN HIS ONLY EXPOSURE TO WALL STREET WAS A HUNDRED OR SO SHARES OF PITNEY BOWES INC LEFT TO HIM AS PART OF AN INHERITANCE AND EVEN THOSE SAT UNTOUCHED IN A DESK DRAWER HIS INTEREST IN INVESTMENTS TO SAY THE LEAST HAS CHANGED DRAMATICALLY LIKE MOST LOTTERY WINNERS THE 46YEAROLD MR HOCKMAN WHO STILL HOLDS HIS JOB AS A QUALITYASSURANCE INSPECTOR IN AN ELECTRONICSREPAIR SHOP FOR THE US AIR FORCE WAS CONCERNED ABOUT STICKING HIS ENTIRE SUM IN A BANK SO HE INITIALLY MOVED HIS WINNINGS INTO A TAXFREE MONEYMARKET ACCOUNT WHERE HE LET HIS MONEY SIT SAFELY AND UNTAXED WHILE HE BONED UP ON MYRIAD INVESTMENT OPTIONS AND PHILOSOPHIES WITH THE HELP OF FINANCIAL MAGAZINES NEWSPAPERS PAMPHLETS AND ANALYSTS' REPORTS MR HOCKMAN DEFINED HIS OWN INVESTMENT STYLE BROADLY DIVERSIFIED CONSERVATISM HIS INVESTMENTS FOR THE MOST PART HAVE LEANED TOWARD REAL ESTATE HE HAS PICKED UP THREE RENTAL HOMES AND A MOBILE HOME IN A TRAILER PARK ALL ARE GENERATING RETURNS WELL IN EXCESS OF 10 MR HOCKMAN SAYS NOW HE IS ON THE HUNT FOR AN EIGHT TO 10UNIT APARTMENT COMPLEX KEEPING WITH THE REALESTATE THEME HE HAS ALSO DIVERTED SOME OF HIS MONEY INTO GINNIE MAES GOVERNMENTBACKED HOME MORTGAGES SOLD TO INVESTORS WHICH ARE GENERATING RETURNS A LITTLE ABOVE 6 MR HOCKMAN'S EARLY FORAYS ONTO WALL STREET HAVEN'T PROVED AS SUCCESSFUL RELATIVES AND NEIGHBORS HE MAINTAINS ARE ALL TOO EAGER TO PROFFER THEIR INVESTMENT TIPS BUT AFTER PLACING BETS ON THE BASIS OF FOUR SUCH TIPS MR HOCKMAN LOST A FEW THOUSAND DOLLARS AND DECIDED THAT THE ROAD TO SUCCESS WAS PAVED WITH DOING YOUR OWN HOMEWORK INSTEAD OF BETTING ON THE RUMORS OF OTHERS THOUGH MR HOCKMAN KEPT HIS JOB HE REALIZED 1 MILLION BEFORE TAXES WON'T LAST FOREVER PAYDAYS AREN'T THAT SIGNIFICANT ANYMORE HE AND HIS WIFE WHO HAVE THREE GROWN CHILDREN ALSO DON'T WORRY ABOUT MONTHLY BILLS HAVING THIS SORT OF MONEY IS A WHOLE DIFFERENT LIFE PROCESS SAYS MR HOCKMAN WHO BEFORE BUYING HIS WINNING SCRATCHOFF TICKET EARNED ROUGHLY 40000 A YEAR HOW DIFFERENT MR HOCKMAN IS ABOUT TO TELL ALL HE IS WRITING A BOOK THE POST YEARS EXPLORING THE CHANGES A LOTTERY WINNER UNDERGOES AFTER MOVING LITERALLY OVERNIGHT FROM A MIDDLECLASS LIFESTYLE INTO THE RAREFIED WORLD OF MILLIONAIRES IT'S CERTAINLY A DIFFICULT PROCESS HE SAYS TO LEARN HOW TO BE A MILLIONAIRE LOTTERY SCRATCHOFF GAMES BEGAN IN MAY 1992 HERE ARE SOME FACTS ABOUT THE GAMES 9403230099 940323 WHO'S NEWS NEW JERSEY RESOURCES CORP NEW JERSEY RESOURCES CORP WALL TOWNSHIP NJ LAURENCE M DOWNES 36 YEARS OLD WAS NAMED TO THE ADDITIONAL POSITION OF EXECUTIVE VICE PRESIDENT AT THE NEW JERSEY NATURAL GAS CO UNIT OF THIS ENERGY HOLDING COMPANY MR DOWNES WILL CONTINUE AS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THE PARENT THE COMPANY ALSO PROMOTED GLENN LOCKWOOD 32 FROM ASSISTANT VICE PRESIDENT TO VICE PRESIDENT CONTROLLER AND CHIEF ACCOUNTING OFFICER 9403230098 940323 LAW COURT RULES RTC CAN SUBPOENA DATA IN CERTAIN CASES BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL APPEALS COURT RULED THAT THE RESOLUTION TRUST CORP MAY SUBPOENA FINANCIAL INFORMATION TO JUDGE THE NET WORTH OF POTENTIAL LEGAL TARGETS ONLY IF IT REASONABLY SUSPECTS THAT THOSE PEOPLE MAY BE LIABLE FOR A THRIFT'S FAILURE THE THREEJUDGE PANEL HERE AFFIRMED PARTS OF LOWERCOURT DECISIONS THAT THE RTC HAS THE POWER TO ISSUE ADMINISTRATIVE SUBPOENAS SEEKING INDIVIDUALS' FINANCIAL DATA THE RULING COVERED TWO CASES INVOLVING ENFORCEMENT INVESTIGATIONS BY THE SAVINGSANDLOAN CLEANUP AGENCY AGAINST WILLIAM WALDE FORMER CHAIRMAN OF TRUSTBANK SAVINGS A FAILED S&L IN MCLEAN VA AND AGAINST EIGHT DIRECTORS OF AMERICAN PIONEER SAVINGS BANK A FAILED THRIFT IN ORLANDO FLA THE AGENCY MAY GO AFTER THE PERSONAL FINANCIAL INFORMATION TO DETERMINE A POTENTIAL DEFENDANT'S LIABILITY IN AN S&L FAILURE TO IDENTIFY ATTACHABLE ASSETS OR TO ESTABLISH EVIDENCE OF ILLEGAL ASSET TRANSFERS AIMED AT AVOIDING RESTITUTION PAYMENTS SOUGHT BY THE RTC SAID JUDGE JAMES BUCKLEY WRITING THE COURT'S OPINION THE JUDGES FOUND THAT SOME OF THE INFORMATION SOUGHT BY THE RTC SUCH AS PERSONAL BANK STATEMENTS WAS RELEVANT TO ASSETTRANSFER OR OTHER PURPOSES WHILE OTHER DATA IT PURSUED SUCH AS ALIMONY PAYMENTS WEREN'T RELEVANT HOWEVER THE AGENCY'S EFFORTS TO DETERMINE WHETHER IT SHOULD SUE AN S&L OFFICIAL BASED ON THAT OFFICIAL'S FINANCIAL WORTH AREN'T LEGITIMATE THE COURT SAID IT DISAGREED WITH WHAT IT CALLED THE RTC'S ATTEMPT TO SUBPOENA INFORMATION RELEVANT TO WEALTH RATHER THAN LIABILITY IT HELD THAT IN CASES SUCH AS THESE WHERE THE RTC HAS NO SUSPICION TO BELIEVE THAT THE FORMER OFFICER OR DIRECTOR IS LIABLE TO S&LS IN ITS CUSTODY THE RTC MAY NOT SUBPOENA HIS PERSONAL FINANCIAL INFORMATION FOR THE PURPOSE OF ASSESSING THE COSTEFFECTIVENESS OF PROSPECTIVE LITIGATION IT HAS BEEN THE RTC'S POLICY TO TRY TO DETERMINE IF SUING THRIFT OFFICERS AND DIRECTORS COULD COST MORE THAN THE AMOUNT IT COULD RECOVER AGENCY SPOKESMAN STEPHEN KATSANOS SAID BUT HE SAID WE DON'T THINK THE APPEALS COURT RULING WILL HAVE A MAJOR EFFECT ON OUR ABILITY TO SUBPOENA POTENTIAL TARGETS' FINANCIAL INFORMATION MR KATSANOS SAID THAT SINCE THE TWO SUBPOENA CASES WERE LAUNCHED THE RTC HAS IN FACT SUED MR WALDE AND THE AMERICAN PIONEER DIRECTORS HE SAID THE SUITS SHOWED A REASONABLE SUSPICION THAT THE DEFENDANTS ARE LIABLE FOR THE THRIFT FAILURES THE SUITS ALSO GAVE THE RTC THE RIGHT TO GO AFTER THE DEFENDANTS' FINANCIAL INFORMATION IN COURT HE SAID THE RTC ALLEGES THAT MR WALDE FRAUDULENTLY SHIFTED SIZABLE ASSETS INTO A TRUST FOR HIS CHILDREN AND CHALLENGED MR WALDE'S CONTENTION THAT HIS FINANCIAL WORTH HAS BEEN MOSTLY DISSIPATED THOMAS BUCHANAN MR WALDE'S LAWYER CALLED THE COURT RULING A MAJOR VICTORY FOR THE OFFICERS AND DIRECTORS OF FAILED INSTITUTIONS HE SAID THAT MORE THAN 30 CASES INVOLVING RTC SUBPOENAS HAVE BEEN STAYED PENDING THE WALDE DECISION THOMAS VARTANIAN A WASHINGTON ATTORNEY WHO REPRESENTS GOVERNMENT TARGETS IN TWO SIMILAR CASES SAID THAT BOTH THE RTC AND THE FEDERAL DEPOSIT INSURANCE CORP HAVE INSISTED ON A RIGHT TO INVESTIGATE FINANCIAL WHEREWITHAL OF POTENTIAL DEFENDANTS NOW HE SAID SUCH CASES WILL HAVE TO BE REARGUED THE RTC HAS BARKED UP THE WRONG TREE MR VARTANIAN SAID 9403230097 940323 GE'S PARAMOUNT BUILDING IS ABOUT TO GET OVERHAUL NEW YORK THE PARAMOUNT BUILDING THE STRUCTURALLYTROUBLED OFFICE TOWER RISING 44 STORIES ABOVE THE SOUTHWEST CORNER OF CENTRAL PARK WILL BE STRIPPED TO ITS GIRDERS NEXT YEAR AND REBUILT WITH BOTH OFFICES AND LUXURY CONDOMINIUMS GENERAL ELECTRIC CO'S GE INVESTMENTS UNIT WHICH TOOK THE 23YEAROLD PROPERTY BACK LAST YEAR FROM A LIMITED PARTNERSHIP MANAGED BY FIRST WINTHROP CORP SAID IT HAD FORMED A JOINT VENTURE WITH GALBREATH CO AND TRUMP ORGANIZATION TO REDEVELOP THE PROPERTY THE 650000SQUAREFOOT BUILDING WHICH WAS ONCE KNOWN AS THE GULF & WESTERN BUILDING HAS BEEN PLAGUED FOR YEARS WITH STRUCTURAL PROBLEMS WHICH CAUSE IT TO SWAY SO MUCH IN HIGH WINDS THAT IT DISRUPTS ELEVATOR SERVICE AND DAMAGES THE FACADE OF THE BUILDING EVEN BEFORE IT AGREED TO BE ACQUIRED BY VIACOM INC PARAMOUNT COMMUNICATIONS INC WHICH OCCUPIES MOST OF THE SPACE HAD DECIDED TO MOVE ITS HEADQUARTERS WHEN ITS LEASE EXPIRED IN APRIL 1995 THE ACCOUNTING FIRM OCCUPYING MOST OF THE REMAINING SPACE ALSO PLANNED TO LEAVE WE ARE GOING TO SKIN THE BUILDING STRIP IT DOWN SOLVE THE STRUCTURAL PROBLEMS TAKE THE ASBESTOS OUT AND PUT IN NEW ELEVATOR CORES EXPLAINED PETER RICKER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GALBREATH A NEW YORK AND COLUMBUS OHIOBASED REALESTATE COMPANY HE SAID THAT THE OFFICES ON THE TOP 28 OR 29 FLOORS WOULD BE REPLACED WITH LUXURY CONDOMINIUMS AND THE LOWER FLOORS WOULD REMAIN COMMERCIAL SPACE 9403230096 940323 EVER HEAR THE ONE ABOUT THE LAWYERS AND WINDOW BARS JUSTICE MAY BE BLIND BUT IT ISN'T CHEAP AS 909 DISPUTE GENERATES 100000 IN FEES BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL LET THE RECORD SHOW THAT ON MARCH 17 1987 THE FIRST 15 MINUTES OF WORK WAS RECORDED ON A LAWYER'S TIME SHEET IN A DISPUTE OVER CHILDPROOF WINDOW GUARDS THE FANCY METAL BARS HAD COST 909 TO PURCHASE AND INSTALL ACROSS 32 WINDOWS OF AN APARTMENT IN MANHATTAN THE OWNER OF THE FLAT HAD WANTED THE COST COVERED BY HIS COOP THE COOPERATIVE'S BOARD HAD SAID THE OWNER HAD TO PAY AS DISPUTES GO THIS ONE DIDN'T SEEM TO AMOUNT TO MUCH BUT IN THE ENSUING SEVEN YEARS THE LEGAL METER HAS KEPT ON RUNNING AND RUNNING AND RUNNING IN THEIR QUEST FOR A 909 VICTORY BOTH SIDES HAVE PAID MANY TIMES AS MUCH THE ADVERSARIES HAVE FOUGHT OVER WHO SHOULD PAY THEY HAVE PAID LAWYERS TO CONTEST OTHER LAWYERS' FEES VIRTUAL SLAVES TO THE LITIGATION THEY CONTINUE TO SHELL OUT MONEY THOUGH IT HAS ALL GOTTEN A BIT OUT OF HAND THE CASE BEGAN SIMPLY ENOUGH AFTER NEW YORK PASSED A LAW REQUIRING WINDOW GUARDS FOR APARTMENTS WITH CHILDREN UNDER 10 THE COOP BOARD AT 360 W 36TH ST A CONVERTED ZIPPER FACTORY IN THE BOROUGH'S GARMENT DISTRICT VOTED TO CHARGE THE EQUIPMENT TO THE RESIDENTS WHO NEEDED IT RATHER THAN TO SPREAD THE COST AROUND ALEC AND SUZI DIACOU WHO LIVE IN A NINTHFLOOR LOFT AND WHOSE THIRD CHILD WAS A MONTH OLD AT THE TIME REFUSED TO PAY THE COOP BOARD ASKED ITS LAW FIRM GALLET DREYER & BERKEY TO LOOK INTO THE DISPUTE BY OCTOBER 1987 AFTER DEVOTING THREE HOURS AND 25 MINUTES TO SETTLEMENT EFFORTS AND OTHER COMMUNICATIONS WITH THE DEFENDANTS THE FIRM BILLED THE COOP FOR 315 BY JUNE 1988 AFTER MORE SETTLEMENT ATTEMPTS THE TAB HAD CLIMBED TO 1015MORE THAN THE COST OF THE WINDOW GUARDS BUT THERE WAS AFTER ALL STILL THE PRINCIPLE OF THE MATTER AT STAKE THE COOP INSISTED THAT IF THE DIACOUS WEREN'T FORCED TO PAY IT WOULD SET A COSTLY EXAMPLE FOR OTHER RESIDENTS TO FOLLOW TWO MONTHS LATER THE PRICE OF PRINCIPLE WAS UP TO 1974 MOSTLY AS A RESULT OF A LANDMARK EVENT IN THE LITIGATION THE BOARD FILED A THREEPAGE LAWSUIT AGAINST THE DIACOUS ON JULY 26 BILLS FOR DRAFTING AND SERVING THE COMPLAINT HAD COME TO 254 A PAGE THE DIACOUS' OWN BILLS AREN'T BROKEN OUT IN THE COURT RECORD AFTER THE DIACOUS RESPONDED TO THE SUIT THE BILLING PICKED UP THE DIACOUS' COUNTERCLAIMS HAD TO BE ADDRESSED AND THE COOP ASKED THE COURT TO DECIDE THE CASE WITHOUT A TRIAL RESEARCHING AND DRAFTING RELATED MOTIONS TOOK MORE THAN 24 HOURS AND COST THE COOP 2700 A SENIOR LAWYER THEN EDITED THE DOCUMENTS ADDING 600 TO THE TAB WHEN AN ASSOCIATE LAWYER WENT ON VACATION A COLLEAGUE HAD TO BE BRIEFED ON THE CASE THE BOARD WAS BILLED 42 BY NOVEMBER 1988 THE COOP WAS OUT 5504 IN LEGAL FEES THE LAWYERS WERE JUST WARMING UP THROUGH THE HOLIDAY SEASON THEY DRAFTED EDITED AND SERVED THEIR DOCUMENTS BY JANUARY 1989 THEY HAD ADDED 3996 TO THE BILL ALREADY THE COOP BOARD HAD INVESTED 10 TIMES AS MUCH AS THEY HAD AT STAKE BUT VINDICATION SEEMED AT HAND ON JAN 26 NEW YORK CIVIL COURT JUDGE RICHARD LANE FOUND THAT LOGIC AND SUBSTANTIAL JUSTICE AS WELL AS LEASE PROVISION REQUIRED THE DIACOUS TO PAY THE 909 END OF STORY HARDLY EVEN A VICTORY HAD TO BE SCRUTINIZED THE COOP BOARD'S ATTORNEYS BILLED 20 MINUTES FOR REVIEWING JUDGE LANE'S DECISION AND ADDED 45 TO THEIR LEGAL FEES AS OF FEBRUARY 1989 THEY HAD BILLED 9759 TO THE CLIENT THEN CAME THE DIACOUS' APPEAL WHICH WAS COMPLICATED BY THE FACT THAT THERE WAS NO COURT PRECEDENT FOR THE LEGAL QUESTION COULD THE COST OF COMPLYING WITH REGULATIONS SUCH AS THE WINDOWGUARD LAW BE CHARGED TO JUST THE RESIDENTS WHO ARE AFFECTED OR MUST THE COST BE SHARED BY EVERYONE IN THE BUILDING BECAUSE OF THE NOVELTY OF THE ISSUE THE COOP'S LAWYERS DECIDED TO CONDUCT A PRACTICE ORAL ARGUMENT TO PREPARE FOR ACTUAL ARGUMENTS BEFORE AN INTERMEDIATE APPEALS COURT PREPARING FOR THE APPEAL RESULTED IN A BILL FOR 5282 TOTAL FEE TO THE COOP AS OF MARCH 1990 1932884 AND CLIMBING MR DIACOU WHO WORKS FOR SUMITOMO BANK AND HIS WIFE GOT SOME GOOD NEWS THAT MAY THE FIRST APPEALS COURT TO RULE ON THE ISSUE OVERTURNED JUDGE LANE AND SAID THE COST OF THE WINDOW GUARDS SHOULD BE SHARED LATER THAT MONTH GALLET DREYER BILLED THE BOARD 1388 FOR REVIEWING THE APPELLATE SETBACK AND FOR COUNSELING THE CLIENT ON WHETHER TO SETTLE THE BILL ALSO INCLUDED A HALFHOUR'S WORKCOSTING 80 ON THE QUESTION THAT WOULD DOMINATE THE CASE WHO WOULD PAY THE LEGAL FEES UNDER THE OWNERSHIP CONTRACT IF THERE WAS A DISPUTE BETWEEN THE COOP AND A UNIT'S OWNER THE LOSER HAD TO REIMBURSE THE WINNER'S LEGAL FEES THAT GAVE THE BOARD EXTRA INCENTIVE TO TAKE THE CASE TO THE NEXT APPELLATE LEVEL AND TRY BOTH TO WIN AND GET ITS LEGAL FEES COVERED THAT STEP REQUIRED 42 1/2 HOURS OF WORK COSTING 6242 BY THE END 1990 AFTER MORE FILINGS WERE MADE TO THE APPEALS COURT THE TALLY STOOD AT 43099 A NEW YEAR DAWNED IN FEBRUARY 1991 THE APPELLATE JUDGES RULED UNANIMOUSLY IN THE COOP BOARD'S FAVOR OUT OF CONCERN FOR THE RISING LEGAL FEES AND BECAUSE SUCH RULINGS ARE RARELY CLEARED FOR FURTHER APPEAL THE DIACOUS DIDN'T CHALLENGE THE DECISION THE DISPUTE OVER THE WINDOW GUARDS HAD REACHED ITS END BUT THE FIGHT OVER LEGAL FEES WAS JUST BEGINNING FIRST THOUGH A PRELIMINARY MATTER WHAT COURT WOULD HEAR THE DISPUTE OVER WHICH PARTY SHOULD PAY THE FEES OVER A CLAIM THAT AFTER ALL WAS STILL WORTH ONLY 909 BECAUSE OF THE SIZE OF THE FEES THE COOP'S LAWYERS ARGUED THAT THE ORIGINAL COURT NEW YORK CIVIL COURT DIDN'T HAVE JURISDICTION THE COOP BOARD'S ATTORNEYS SOUGHT TO TAKE THE CASE TO A HIGHER TRIAL COURT STATE SUPREME COURT AND CHARGED 1310 FOR THAT ACTION THE COOP'S LAWYERS ALSO PRESENTED A 2500 BILL FOR FEES INCURRED IN PREPARING FOR HEARING ON FEES THE ALLINCLUSIVE TOTAL AS OF OCTOBER 1991 53405 TWO MONTHS LATER THE COOP'S LAWYERS COMPLETED THE LEGAL WORK NECESSARY TO MAKE THEIR CLAIM THAT THE DIACOUS SHOULD UNDER THEIR CONTRACT REIMBURSE THE COOP FOR ITS LEGAL FEES THE LAWYERS PRESENTED DETAILS OF THE 411 HOURS AND 42 MINUTES LOGGED BY ASSOCIATES AND PARTNERS FOR A TOTAL OF 59439 PLUS 1967 IN EXPENSES THAT INCLUDED 1500 FOR THE VERY DOCUMENT USED TO MAKE THE REQUEST THE COOP'S LAWYERS ALSO ASKED THE COURT FOR A 5000 BONUS FOR WORK DONE OVER THE YEARS BUT NEVER ACTUALLY BILLED TO THE CLIENT AS OF DECEMBER 1991 THE TAB STOOD AT 61406 IN SEPTEMBER 1992 REFEREE WILLIAM ROTHBERG FOUND THAT THE REASONABLE ATTORNEYS' FEES AT ISSUE EXCEEDED THE CIVIL COURT'S JURISDICTION HE REJECTED THE REQUESTED BONUS OF 5000 AS LUDICROUS LAWYERS ON BOTH SIDES HE SAID HAVE LOST SIGHT OF THE AMOUNT IN CONTROVERSY NINE MONTHS LATER THE COOP'S LAWYERS PRESENTED ADDITIONAL BILLS TO THEIR CLIENT FOR 12141 THE NEW BILLS WERE FOR FEES TO COLLECT FEES THE JUNE 1993 TOTAL 73547 IN JULY MR ROTHBERG CONCLUDED THAT THE COOP BOARD COULDN'T REASONABLY PASS ON ALL OF GALLET DREYER'S FEES TO THE DIACOUS THE PARTIES AND THEIR ATTORNEYS DEMONSTRATED A LACK OF COMMON SENSE AND A LACK OF PRACTICALITY AND ALLOWED A CLAIM FOR 909 TO ESCALATE INTO AN ATTORNEYS' FEE CLAIM EXCEEDING 70000 MR ROTHBERG SAID IN HIS REPORT TO THE COURT HE CONCLUDED THAT THE BOARD SHOULD BE ABLE TO RECOVER 30000 FOR ITS LEGAL FEES FROM THE DIACOUS LAST MONTH THE REFEREE'S RECOMMENDATION WAS ADOPTED BY THE TRIAL JUDGE CLEARING THE WAY FOR THE COOP TO TRY TO COLLECT THE 30000 THE COOP BOARD WON'T BE REIMBURSED FOR THE REMAINING 43000 IN FEES MOST OF WHICH THE LAWYERS HAVE ALREADY COLLECTED DAVID BERKEY A LAWYER FOR THE COOP DEFENDS HIS FIRM'S WORK I THINK THE EXPENDITURES HERE WERE APPROPRIATE AND WERE KEPT PRETTY MUCH TO A MINIMUM HE SAYS ADDING THAT HIS CLIENT IS PLEASED WITH THE OUTCOME EVERY STEP OF THE WAY THEY HAD AN IDEA OF WHAT WAS GOING ON THERE WERE NO SURPRISES IN THIS CASE FOR THE DIACOUS WHO HAVE PAID 30000 TO THEIR OWN LAWYERS THE CASE HAS PROVED TO BE AN EXPENSIVE LESSON IN KEEPING THINGS IN PERSPECTIVE I'M A MAN CONVERTED MR DIACOU SAYS ANYTHING YOU CAN POSSIBLY DO TO AVOID A LAWSUIT DO IT 9403230095 940323 TEXAS JOURNAL FOR THOSE WHO SAY HOUSTON IS OUT OF TOUCH BY LAURA JOHANNES HOUSTON THAT BEEPING NOISE YOU HEAR ISN'T IN YOUR HEAD IT'S HOUSTON BLAME IT ON URBAN SPRAWL OR ON ALL THOSE OILFIRM WORKERS WHO TOIL FAR FROM TELEPHONES OR ON VANITY BUT WHATEVER THE REASON THERE SEEM TO BE MORE PAGERS PER CAPITA IN HOUSTON THAN ALMOST ANYWHERE ELSE ACCORDING TO ESTIMATES BY PAGING NETWORK INC A CARRIER BASED IN PLANO 12 OF HOUSTONIANS CARRIED PAGERS AT THE END OF LAST YEAR THAT COMPARES WITH 10 IN DALLAS 6 IN AUSTIN AND SAN ANTONIO AND 74 IN THE US AS A WHOLE IT'S PHENOMENAL AT THE HOUSTON LIVESTOCK SHOW AND RODEO LAST MONTH EVERY OTHER PERSON WITH A COWBOY HAT AND BELT BUCKLE WAS WEARING A PAGER SAYS MILES JOHNSON WHO IS GENERAL MANAGER OF THE LOCAL OFFICE OF MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH THE BOOMING MARKET HAS COMPANIES DESCENDING ON THE CITY SIX NATIONAL PAGING CARRIERS ARE RUBBING ELBOWS IN HOUSTON AND THEN THERE ARE THE APPROXIMATELY 50 SMALLER RESELLERS COMPANIES THAT BUY AIR TIME FROM THE NATIONAL CARRIERS AND MARKET IT TO CUSTOMERS THE COMPETITION MEANS THAT HOUSTON CONSUMERS ENJOY SOME OF THE LOWEST PRICES IN THE NATION A HOUSTON BUSINESS CAN LEASE 100 PAGERS FOR ONLY ABOUT 495 A MONTH INCLUDING AIR TIME COMPARED WITH ABOUT 650 IN DALLAS AND 15 IN LOS ANGELES SAYS DANNY RAGSDALE GENERAL MANAGER OF THE HOUSTON OFFICE OF MOBILECOMM A RIDGELAND MISS UNIT OF ATLANTABASED BELLSOUTH CORP SOME BIG EMPLOYERS HAVE EVEN NEGOTIATED PRICES UNDER 4 NOW THE DOWNSIDE BECAUSE HOUSTON IS SUCH A HOT MARKET THE OBVIOUS USERS OF PAGERS SUCH AS DOCTORS NURSES PLUMBERS AND ELECTRICIANS ARE BEING BESIEGED BY TELEMARKETERS WHO PROMISE BETTER SERVICE AND LOWER PRICES YOU ARE MORE LIKELY TO GET A CALL FROM A PAGING TELEMARKETER IN HOUSTON THAN IN MOST OTHER CITIES IN THE NATION SAYS TERRY SCOTT CHIEF EXECUTIVE OFFICER OF PAGING NETWORK 9403230094 940323 INTERNATIONAL CRISIS IN KOREA PUSHES JAPAN TO REVIEW ROLE CHANGES TO DEFENSE POLICY MAY GENERATE A FUROR AT HOME AND ABROAD BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE SPECTER OF A NUCLEARARMED NORTH KOREA IS PUSHING JAPAN TO CONSIDER ADJUSTING ITS DEFENSE POSTURE THE RISING TENSIONS ON THE KOREAN PENINSULA SPOTLIGHT JAPAN'S SURPRISINGLY EXTENSIVE CONTACTS WITH NORTH KOREA ROUGHLY 250000 NORTH KOREANS LIVE WORK AND STUDY IN JAPAN THERE IS ANNUAL BILATERAL TRADE AND A FLOW OF REPATRIATED FUNDS TOTALING HUNDREDS OF MILLIONS OF DOLLARS JAPANESE AUTHORITIES HAVE RECENTLY INVESTIGATED ALLEGEDLY ILLEGAL EXPORTS TO NORTH KOREA OF SOPHISTICATED TECHNOLOGY FROM JAPANESE TRADING COMPANIES NOW MANY PEOPLE HERE ARE CONSIDERING HOW JAPAN ITSELF SHOULD REACT AS THE PROSPECT OF A UNITED NATIONS REVIEW OF POTENTIAL SANCTIONS RISES IF MANAGED WELL THE NORTH KOREAN STANDOFF IS A WONDERFUL OPPORTUNITY SAYS MINISTER OF DEFENSE KAZUO AICHI IT COULD BE USED AS AN OPPORTUNITY TO EXPAND JAPAN'S ROLE BY BUILDING A PUBLIC CONSENSUS FOR A MORE ACTIVE JAPANESE DEFENSE POLICY HE SAYS FORGING A NEW CONSENSUS HOWEVER IS LIKELY TO BE A LONG AND AGONIZING PROCESS FOR DECADES JAPAN'S MILITARY ROLE HAS BEEN ONE OF THE MOST CONTENTIOUS ISSUES IN JAPANESE SOCIETY BUT WITH THE END OF THE COLD WAR AND NOW THAT NORTH KOREA IS JAPAN'S MOST DIRECT SECURITY THREAT JAPANESE ARGUMENTS OVER DEFENSE ARE LIKELY TO GROW EVER MORE HEATED AND COULD EVEN BECOME A DEFINING ISSUE OF JAPANESE POLITICS FOR YEARS TO COME ANALYSTS SAY THERE'S AN INTERNAL CONTRADICTION BETWEEN A SENSE THAT JAPAN HAS TO DO MORE IN THE AREA OF INTERNATIONAL CONTRIBUTIONS AND THE IDEA THAT THEY DON'T WANT TO DO ANYTHING THAT'S GOING TO INCREASE RISKS SAYS GERALD CURTIS A JAPAN EXPERT AT COLUMBIA UNIVERSITY SQUARING THAT CIRCLE IS GOING TO BE VERY DIFFICULT THE REGIONAL RESPONSE TO THE NORTH KOREAN ISSUE IS LIKELY TO FIGURE PROMINENTLY THIS WEEK AS SOUTH KOREAN PRESIDENT KIM YOUNG SAM ARRIVES IN TOKYO FOR A THREEDAY SUMMIT STARTING TOMORROW AFTER HIS MEETINGS WITH JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA PRESIDENT KIM THEN TRAVELS TO CHINA OFTEN VIEWED AS THE COUNTRY WITH THE GREATEST INFLUENCE ON THE PYONGYANG LEADERSHIP ANY MOVE TOWARD A MORE ASSERTIVE MILITARY POSTURE WOULD BE DEEPLY UNPOPULAR AMONG MANY JAPANESE AND WOULD LIKELY ALARM JAPAN'S ASIAN NEIGHBORS MANY OF WHOM CARRY SCARS FROM JAPANESE INVASIONS DURING WORLD WAR II WHILE JAPAN HAS A SIZABLE MILITARY IT IS CONSTITUTIONALLY PROHIBITED FROM OPERATING ABROAD EXCEPT IN LIMITED NONCOMBAT SUPPORT OF UN PEACEKEEPING OPERATIONS FEW JAPANESE OPENLY ADVOCATE ABANDONING THAT CONSTITUTIONAL RESTRICTION BUT CRITICS ARGUE THAT THE NORTH KOREAN SITUATION HAS HIGHLIGHTED NUMEROUS WEAKNESSES IN JAPAN'S DEFENSE POLICY IN THIS COUNTRY THERE'S NO CRISISMANAGEMENT SYSTEM ICHIRO OZAWA A POWERFUL LAWMAKER IN THE RULING COALITION GOVERNMENT SAID IN A RECENT TELEVISION INTERVIEW THERE'S NO SYSTEM WITH WHICH TO PREPARE FOR WHAT HAPPENS IF A SUDDEN MILITARY EMERGENCY ARISES HE SAID JAPAN HAS A STRONG ENOUGH MILITARY CAPABILITY THE QUESTION IS WHETHER WE HAVE THE GUTS TO USE IT SAYS MASASHI NISHIHARA A RESEARCH DIRECTOR AT JAPAN'S NATIONAL INSTITUTE FOR DEFENSE STUDIES HE THINKS JAPAN MUST RESOLVE ITS OWN AMBIVALENCE ABOUT THE USE OF FORCE ABROAD BEFORE IT CAN OBTAIN A PERMANENT SEAT ON THE UN SECURITY COUNCIL ORDINARY JAPANESE ARE EVEN AMBIVALENT ABOUT THE STRONG US PRESENCE IN JAPAN AS THE MANY CITIZENLED PROTESTS AGAINST US MILITARY BASES SHOW THOUGH THE BASES WOULD BE CENTRAL IN ANY MILITARY CONFLICT ON THE KOREAN PENINSULA GROUPS HERE ARE ANGRY ABOUT THE NOISE CAUSED BY THEIR NORMAL OPERATIONS THEY HAVE RECENTLY WON SEVERAL COURT JUDGMENTS REQUIRING THE JAPANESE GOVERNMENT TO COMPENSATE THEM FOR INSTANCE HOMEMAKER SANAE MIURA WHO LIVES NEAR THE YOKOTA AIR BASE WEST OF TOKYO SAYS SHE IS LESS CONCERNED ABOUT THE THREAT THE US IS DETERRING THAN ABOUT THE DISTURBANCE CAUSED BY US TRANSPORT AIRCRAFT BECAUSE OF ITS COMPLEX AND DELICATE RELATIONSHIP WITH NORTH KOREA JAPAN HAS AGONIZED OVER HOW IT WOULD REACT IF THE UN CALLS FOR AN ECONOMIC EMBARGO OF NORTH KOREA IF WE STOP TRADE AND THE FLOW OF MONEY FROM JAPAN TO NORTH KOREA IT WILL BECOME A BIG PROBLEM BETWEEN COUNTRIES AND ALSO A MAJOR UPHEAVAL IN JAPAN MR OZAWA SAYS SOME OFFICIALS SUGGEST JAPAN MIGHT FIND IT DIFFICULT TO ACTUALLY STOP THE FLOW WHICH THEY SAY IS LARGELY IN CASH AND CAN BE TAKEN TO NORTH KOREA EASILY VIA THIRD COUNTRIES MANY ANALYSTS IN FACT CHARGE THAT JAPAN'S SENSITIVITY OVER ITS FORMER COLONIZATION OF KOREA HAS LED IT TO OVERLOOK A MASSIVE FLOW OF MONEY FROM NORTH KOREAN RESIDENTS BACK TO THEIR HOME COUNTRY AT TIMES PROBABLY IN VIOLATION OF JAPAN'S CURRENCYCONTROL RULES KATSUMI SATO DIRECTOR OF THE MODERN KOREA INSTITUTE IN TOKYO ESTIMATES THAT THESE RESIDENTS SEND AS MUCH AS 200 BILLION YEN 19 BILLION TO NORTH KOREA EACH YEAR AN AMOUNT MR SATO SAYS IS EQUAL TO 40 OF NORTH KOREA'S GROSS DOMESTIC PRODUCT NONSENSE SAYS CHOE KWANIK A REPRESENTATIVE OF CHOSENSOREN THE ASSOCIATION OF NORTH KOREAN RESIDENTS IN JAPAN INSIDE CHOSENSOREN'S GLEAMING TOKYO HEADQUARTERS BUILDING WHICH IS SURROUNDED BY A HEAVY WALL TOPPED WITH CAMERAS AND TRIPWIRES MR CHOE DISMISSES MR SATO'S CLAIM AND EXPLAINS THAT THE ONLY MONEY FLOWING TO NORTH KOREA IS FROM PEOPLE TRAVELING TO VISIT THEIR FAMILIES THE TOTAL IS JUST 400 MILLION YEN EVERY YEAR MR CHOE SAYS THIS MONEY CANNOT BE USED FOR NUCLEAR WEAPONS EVEN IF NORTH KOREA HAD THE INTENTION TO DEVELOP NUCLEAR WEAPONS EVEN AS TRADE BETWEEN THE TWO COUNTRIES HAS REMAINED ROUGHLY CONSTANT THE NUMBER OF JAPANESE VISITORS TO NORTH KOREA HAS INCREASED STEADILY 9403230093 940323 POLITICS & POLICY SENATE CONFIRMS GORELICK FOR JUSTICE DEPARTMENT JOB WASHINGTON THE SENATE CONFIRMED PRESIDENT CLINTON'S NOMINATION OF PENTAGON LAWYER JAMIE GORELICK TO THE NO 2 JOB AT THE JUSTICE DEPARTMENT ALSO CONFIRMED WAS BOSTON LAWYER DEVAL PATRICK TO HEAD THE DEPARTMENT'S CIVIL RIGHTS DIVISION BOTH WERE CONFIRMED BY VOICE VOTE MS GORELICK THE GENERAL COUNSEL AT THE DEFENSE DEPARTMENT WILL BECOME DEPUTY ATTORNEY GENERAL SUCCEEDING PHILIP HEYMANN MR HEYMANN RESIGNED IN JANUARY AFTER A DISPUTE WITH ATTORNEY GENERAL JANET RENO THE DEPARTMENT'S NO 3 OFFICIAL ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL RESIGNED LAST WEEK IN A DISPUTE OVER BILLINGS AT THE ROSE LAW FIRM IN LITTLE ROCK ARK PRESIDENT CLINTON HASN'T NAMED A SUCCESSOR 9403230092 940323 SMITH EXCHAIRMAN OF ORANGE & ROCKLAND FACES LARCENY CHARGES NEW CITY NY JAMES F SMITH FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ORANGE & ROCKLAND UTILITIES INC WAS INDICTED IN ROCKLAND COUNTY DISTRICT COURT HERE ON CHARGES THAT HE MISAPPROPRIATED ABOUT 30000 IN COMPANY FUNDS MR SMITH FILED A PLEA OF NOT GUILTY AND WAS RELEASED ON HIS OWN RECOGNIZANCE HE FACES FOUR COUNTS OF GRAND LARCENY IN THE THIRD DEGREE FOUR COUNTS OF GRAND LARCENY IN THE FOURTH DEGREE AND TWO COUNTS OF PETIT LARCENY HE HAS BEEN SCHEDULED FOR A COURT APPEARANCE ON MAY 24 THE ROCKLAND COUNTY DISTRICT ATTORNEY'S OFFICE ALLEGED THAT MR SMITH DIVERTED FUNDS FROM THE PEARL RIVER NY UTILITY TO HIS FAMILY AND FRIENDS AMONG THE ALLEGATIONS 7000 IN HOLIDAY BASKETS FOR FRIENDS FAMILY AND A MAINE REALESTATE AGENT AND 3037 IN MOVING COSTS FOR A FAMILY MEMBER MR SMITH COULDN'T BE REACHED FOR COMMENT MESSAGES LEFT AT THE OFFICE OF MR SMITH'S ATTORNEY WEREN'T RETURNED THE ASSOCIATED PRESS REPORTED THAT JAY D FISCHER A LAWYER FOR MR SMITH SAID HIS CLIENT IS INNOCENT OF ANY CRIMINAL WRONGDOING ORANGE & ROCKLAND WHICH DISMISSED MR SMITH IN OCTOBER 1993 FILED A CIVIL SUIT AGAINST THE FORMER CHAIRMAN IN FEBRUARY SEEKING 5 MILLION IN RECOVERED FUNDS AND DAMAGES KENNETH GRIBETZ ROCKLAND COUNTY DISTRICT ATTORNEY SAID MUCH OF THE EVIDENCE THAT LED TO MR SMITH'S INDICTMENT STEMMED FROM AN INTERNAL INVESTIGATION BEING CONDUCTED BY ORANGE & ROCKLAND MR GRIBETZ SAID HIS INVESTIGATION INTO ACTIVITIES AT THE COMPANY ARE CONTINUING ORANGE & ROCKLAND HAS BEEN SHAKEN BY FINANCIAL SCANDAL SINCE THE INDICTMENT OF FORMER EXECUTIVE LINDA WINIKOW ON CHARGES OF BRIBERY AND LARCENY SHE PLEADED GUILTY TO THE CHARGES IN OCTOBER AND IS SCHEDULED FOR SENTENCING IN APRIL SINCE HER PLEA TWO FORMER EMPLOYEES HAVE BEEN CHARGED IN A FALSEBILLING SCHEME ALSO TWO EXECUTIVES WITH FINANCIAL OVERSIGHT RESPONSIBILITIES WERE DISMISSED BY ORANGE & ROCKLAND EARLIER THIS MONTH 9403230091 940323 TOYS POWER RANGERS TAKE ON THE WHOLE WORLD BY JENNIFER CODY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO LIKE THE ACTION FIGURES IT CREATES BANDAI CO IS READY FOR BATTLE ENERGIZED BY ITS EXTRAORDINARY SUCCESS WITH THE MIGHTY MORPHIN POWER RANGERS THE JAPANESE TOY MAKER PLANS TO TRIPLE RANGER PRODUCTION THIS YEAR IT ALSO IS WORKING ON SEVERAL FLASHY NEW PROMOTIONS INCLUDING A FULLLENGTH RANGER MOVIE AND IS DEVELOPING AN ARRAY OF NEW OFFBEAT CHARACTERS THE COMPANY RECENTLY SCRAPPED A LONGTERM EUROPEAN MARKETING AGREEMENT WITH JAPAN'S NINTENDO CO AND WILL ROLL OUT THE RANGERS IN EUROPE THIS SPRING IT IS SCOURING SOUTHEAST ASIA FOR NEW MEDIA AND PRODUCTION OPPORTUNITIES AND HAVING ALREADY DOUBLED RANGERRELATED PRODUCTION AT ITS FACILITIES IN THAILAND CHINA AND HONG KONG BANDAI WILL THIS YEAR INVEST IN NEW FACILITIES IN MEXICO AND VIETNAM ALL THIS ACTIVITY IS QUITE A SWITCH FOR WHAT WAS UNTIL THE RANGERS ANYWAY A FAIRLY SLEEPY COMPANY THIS IS A BORING CONVENTIONAL TOY COMPANY ON THE FACE OF IT SAYS EDWARD BROGAN AN ANALYST AT SMITH BARNEY SHEARSON INC IN TOKYO BANDAI'S MAIN BUSINESS RENDERING POPULAR JAPANESE MOVIE AND TELEVISION CHARACTERS INTO TOYS LONG AGO MADE IT ONE OF JAPAN'S BIGGEST TOY COMPANIES BUT UNTIL NOW IT NEVER TRANSLATED ITS DOMESTIC SUCCESS INTO PROFITS ABROAD SUCH CHARACTERS AS ULTRAMAN A METALLIC SUPERHERO WITH LASERBEAM EYES WERE BIG HITS IN JAPAN BUT WERE TOO FOREIGN FOR AMERICANS SAYS BANDAI'S PRESIDENT AND CHIEF EXECUTIVE OFFICER MAKOTO YAMASHINA MOREOVER BANDAI FAILED TO MOUNT THE LOCAL MARKETING EFFORTS NEEDED TO MAKE ITS CHARACTERS POPULAR IN MARKETS RANGING FROM FLORIDA TO FRANCE AND IT RELIED TOO HEAVILY ON PARTNERS WHO WERE ALSO COMPETITORS MUCH OF BANDAI'S NEW ENERGY CAN BE TRACED TO THE MIGHTY MORPHINS BUTTRESSED BY THE SUPPORT OF JAPANESE MOVIE MAKER TOEI CO CALIFORNIA PRODUCER SABAN ENTERTAINMENT AND NEWS CORP'S FOX CHILDREN'S NETWORK BANDAI WAS FINALLY ABLE TO TRANSLATE ITS JAPAN STRATEGY IN THE US MR BROGAN SAYS TOGETHER THE THREE COMPANIES WORKED TO MAKE THE LONGRUNNING JAPANESE JYU RANGAH POWER RANGER TELEVISION SERIES AND TOYS WORK FOR US VIEWERS AFTER ULTRAMAN BOTH COMPANIES REALIZED THAT WE NEEDED TO PUT AN AMERICAN PERSPECTIVE ON THE CONCEPT SAYS PETER DANG VICE PRESIDENT OF MARKETING SALES AND PRODUCT DEVELOPMENT AT BANDAI'S US OFFICE IN CERRITOS CALIF WITH THE RANGERS BANDAI PAID CLOSE ATTENTION TO LOCAL TASTES IT ACTUALLY TONED DOWN THE VIOLENCE FOR THE US AUDIENCE IT PORTRAYED THE OFFDUTY RANGERS AS NORMAL AMERICAN KIDS WHO SHOOT BASKETS MALLHOP AND DO AEROBICS WHEN THEY AREN'T FIGHTING SPACE ALIENS WITH MACHINES THEY SUMMON BY HOLLERING THE NAMES OF DEAD DINOSAURS AND IT TOSSED IN A MORAL AT THE END OF EACH SHOW THE RESULT A CAMPIER CALIFORNIAN VERSION OF THE POWER RANGERS AND A CULTURAL BRIDGE BETWEEN THE TWO COUNTRIES BOASTS HAIM SABAN HEAD OF SABAN ENTERTAINMENT BANDAI ALSO AMERICANIZED THE TOYS INTEGRATING THE US LIKENESSES IN UNMASKED CHARACTERS AND GIVING MORE FOCUS TO THE FEMALE HALF OF THE TEAM BUT IT STAYED FAITHFUL TO THE TOYS' ORIGINAL TECHNICAL INTRICACY EVEN THE INDEX FINGER MOVES TO HOLD A LASER GUN SAYS MR DANG WHO ADDS THAT THE RANGERS' APPEAL STEMS IN PART FROM THE FACT THAT KIDS CAN MANIPULATE THEM AND THEIR PARENTS CAN'T AFTER THE RANGERS' DEBUT IN US STORES LAST AUGUST THE FIGURES STARTED VANISHING AS FAST AS THE EVIL TROLLS THEY BATTLE AND THAT DISSOLVE IN SMOKE PUFFS WHEN DEFEATED AFTER THE FOX SHOW STARTED THE TREND BECAME A CRAZE BY CHRISTMAS THE RANGERS WERE IN TIGHT SUPPLY ANALYSTS SAY FISCAL THIRDQUARTER SALES OF THE RANGERS IN THE US TOTALED ALMOST 19 MILLION NEARLY SIX TIMES HIGHER THAN WHAT HAD BEEN EXPECTED THE MORPHINOMENON EVEN SPREAD TO THE STREETS A FIVEMILE TRAFFIC BATTLE ERUPTED ON A HOLLYWOOD FREEWAY AFTER 35000 VISITORS RUSHED TO A MORPHIN APPEARANCE AT UNIVERSAL STUDIOS BANDAI OFFICIALS SEE THEIR NEW CUTTINGEDGE IMAGE AS A WAY TO FOSTER OTHER NICHEMARKET CONCEPTS IN THE US AND ELSEWHERE RANGERWEARY PARENTS FOR EXAMPLE CAN ALWAYS INTRODUCE THEIR CHILDREN TO THE TICK A BLUE BLOODSUCKING HERO WITH A SIDEKICK ACCOUNTANT WHO DRESSES LIKE A MOTH BASED ON A US COMIC BOOK THE TOY WILL BE MARKETED THROUGH AN ANIMATED CHILDREN'S TELEVISION SHOW ACCORDING TO BANDAI'S US OFFICE THE BIG COMPANIES ARE NOT GOING TO PICK UP SOMETHING WEIRD LIKE A TICK THEY HAVE THE SAFE THINGS THEY CAN RELY ON MR DANG SAYS BANDAI IS ALSO LOOKING AT OTHER JAPANESE ITEMS FOR POTENTIAL EXPORT NEW CONCEPTS MIGHT INCLUDE A LONGLEGGED SCHOOLGIRL NAMED PRETTY SOLDIER SAILOR MOON WHO DOUBLES AS A CRIMEFIGHTING FEMME FATALE IN A TOPRATED TELEVISION SHOW AND A MOVIE HERE OF COURSE MR DANG ADDS WE'D HAVE TO FIND THE LINKAGE IN THE AMERICAN PSYCHE AND IT WOULD HAVE TO BE CULTURALLY APPROPRIATE 9403230090 940323 ABREAST OF THE MARKET STOCK PRICES FELL DESPITE RALLY IN BONDS AS FED MOVES ON RATES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK A FUTURESRELATED SELL PROGRAM SENT STOCK PRICES LOWER AT THE CLOSE DESPITE A BOND RALLY AMID NEWS OF ANOTHER FEDERAL RESERVE TIGHTENING THE DOW JONES INDUSTRIAL AVERAGE DECLINED 230 OR 006 TO 386255 AFTER POSTING MODERATE GAINS EARLIER AS GOVERNMENT SECURITIES SURGED INVESTORS HAD HESITATED TO MAKE BIG MOVES AS THEY AWAITED WORD FROM THE FED'S FEDERAL OPEN MARKET COMMITTEE A POLICYSETTING BODY WHICH MET YESTERDAY FED CHAIRMAN ALAN GREENSPAN ANNOUNCED A DECISION TO INCREASE PRESSURE ON RESERVE POSITIONS LINKED TO AN INCREASE OF 1/4PERCENTAGE POINT IN SHORTTERM RATES SPECULATION MONDAY THAT A 1/2PERCENTAGE POINT BOOST TO THE DISCOUNT RATE WAS IMMINENT SPARKED SELLING THAT LOPPED 3080 POINTS FROM THE DOW INDUSTRIALS MR GREENSPAN'S ANNOUNCEMENT SOOTHED BONDMARKET FEARS THAT THIS WORSTCASE SCENARIO WOULD BE PLAYED OUT THE TREASURY'S LONG BOND JUMPED 1 1/4 POINTS AND ITS YIELD FELL TO 685 OBSERVERS SAID SHORT COVERING AIDED THE ADVANCE BIG BOARD ADVANCERS LED DECLINERS 1189 TO 925 ACCORDING TO A PRELIMINARY COUNT BIG BOARD VOLUME STOOD AT 282241000 SHARES UP FROM 247358000 MONDAY THE FED LAST BOOSTED RATES ON FEB 4 CAUSING A STEEP SLIDE IN EQUITY PRICES THE DOW INDUSTRIALS SANK 96 POINTS THAT DAY MARKET STRATEGISTS SAY THAT SELLOFF FOLLOWED STRONG GAINS IN JANUARY THAT MADE STOCKS RIPE FOR A CORRECTION YESTERDAY'S FED MOVE WAS WIDELY EXPECTED AND ALREADY LARGELY DISCOUNTED BY STOCK INVESTORS RATESENSITIVE FINANCIAL ISSUES ROSE YESTERDAY FEDERAL NATIONAL MORTGAGE ASSOCIATION LIFTED 1 3/4 TO 83 1/8 AND FIRST CHICAGO ADDED 3/4 TO 51 1/4 FIRST INTERSTATE BANCORP ROSE 1 5/8 TO 74 1/2 THE COMPANY SAID ITS MANAGEMENT HAS PROPOSED A SIGNIFICANT INCREASE IN ITS QUARTERLY DIVIDEND AND ITS 1994 BUYBACK PROGRAM TO EIGHT MILLION SHARES FROM THE PREVIOUSLY ANNOUNCED 15 MILLION AMONG BLUE CHIPS PHILIP MORRIS WAS A NOTABLE LOSER DOWN 1 7/8 TO 52 1/8 ON NEWS THAT A HOUSE HEALTH SUBCOMMITTEE VOTED TO RAISE FEDERAL CIGARETTE TAXES BY 125 A PACK RJR NABISCO HOLDINGS FELL 1/2 TO 6 1/8 ANOTHER COMPONENT OF THE DOW INDUSTRIALS MERCK LOST 1 1/2 TO 30 1/2 YESTERDAY'S WALL STREET JOURNAL REPORTED THAT SANDOZ PHARMACEUTICALS PLANS TO LAUNCH ITS CHOLESTEROLREDUCING DRUG AT ABOUT HALF THE PRICE OF COMPETING PRODUCTS MADE BY MERCK AND BRISTOLMYERS SQUIBB WHICH FELL 1 3/8 TO 53 1/8 FURMAN SELZ AND HAMBRECHT & QUIST BOTH LOWERED THEIR INVESTMENT RECOMMENDATIONS ON MERCK OTHER HEALTHCARE STOCKS WERE ALSO WEAK ELI LILLY SAGGED 2 5/8 TO 53 1/2 PFIZER RETREATED 1 TO 57 AND SCHERINGPLOUGH DECLINED 2 TO 57 1/2 NASDAQ STOCKS WERE HURT BY WEAKNESS IN SOME LARGECAPITALIZATION TECHNOLOGY ISSUES THE NASDAQ COMPOSITE INDEX EXTENDED MONDAY'S 663POINT LOSS BY 096 TO END AT 79634 NASDAQTRADED NOVELL OF PROVO UTAH SLID 3 3/4 TO 20 AS ANALYSTS TOOK A DIM VIEW OF THE COMPANY'S PLAN TO ACQUIRE WORDPERFECT AND BORLAND INTERNATIONAL'S QUATTRO PRO SPREADSHEET SOUNDVIEW FINANCIAL COWEN MERRILL LYNCH SG WARBURG GROUP UBS SECURITIES ALEX BROWN & SONS FIRST BOSTON AND DEAN WITTER ALL CUT THEIR RATINGS ON NOVELL MEANWHILE BORLAND OF SCOTTS VALLEY CALIF LOST 7/8 TO 13 1/4 ON NASDAQ AMERICAN DEPOSITARY RECEIPTS OF SOME OVERSEAS TELECOMMUNICATIONS CONCERNS REGROUPED AFTER SLIDING MONDAY TELEFONICA DE ARGENTINA REBOUNDED 4 1/4 TO 68 AND HONG KONG TELECOMMUNICATIONS GAINED 2 3/8 TO 51 1/4 TELEFONOS DE MEXICO SURGED 6 1/4 TO 65 AND TOPPED THE BIG BOARD MOST ACTIVE LIST WITH VOLUME OF 94 MILLION SHARES COMPARED WITH AVERAGE DAILY TURNOVER OF 43 MILLION OTHER MEXICAN STOCKS RALLIED AS THE MEXICAN STOCK EXCHANGE SOARED ON NEWS THAT THE RULING PARTY'S BIGGEST POLITICAL THREAT SAID HE WON'T RUN FOR PRESIDENT THIS AUGUST ADRS OF GRUPO CASA AUTREY A DISTRIBUTOR OF PHARMACEUTICALS BEAUTY AND CONSUMER PRODUCTS ROSE 3 3/8 TO 26 5/8 GRUPO FINANCIERO SERFIN LIFTED 2 3/8 TO 26 3/8 AND CONSORCIO G GRUPO DINA A MANUFACTURER OF BUSES AND VEHICLEREPLACEMENT PARTS CLIMBED 1 3/4 TO 18 1/8 AMONG NEW ISSUES JDN REALTY CLIMBED TO 23 1/8 FROM ITS OFFERING PRICE OF 22 A SHARE LATE MONDAY THE ATLANTA DEVELOPER OF WALMARTANCHORED SHOPPING CENTERS SAID IT WILL USE PROCEEDS TO ACQUIRE PROPERTIES AND REPAY DEBT THE POSITIVE IS THAT THE MARKET DIDN'T GO DOWN SAID JOHN WOSCZYNA A MARKET STRATEGIST AT RONEY & CO BUT THE WORRY IS WHY DIDN'T WE GET A BOUNCE IF IT WAS ALREADY BUILT IN THE FED DIDN'T JACK THE RATES UP THAT HIGH SO STOCKS WILL BE VULNERABLE TO A CORRECTION GREG KUHN WHO HEADS KUHN ASSET MANAGEMENT SAID CAUTION STILL EXISTS THAT THE DISCOUNT RATE COULD STILL BE PUSHED HIGHER WE SAW A BIT OF A RELIEF MOVE HIGHER EARLIER BUT THIS COULD BE JUST THE BEGINNING IN TERMS OF JITTERS ABOUT RATES HE SAID 9403230089 940323 MANAGING YOUR CAREER BY GILBERT FUCHSBERG YOU DREAD MONDAY MORNINGS AND THE START OF ANOTHER WORKWEEK YOU FEEL QUEASY EVERY TIME YOU SEE YOUR BOSS YOU CAN'T REMEMBER YOUR LAST RAISE YOU'RE JEALOUS OF A COLLEAGUE'S PROMOTION SUCH OCCURRENCES ARE AN ANNOYING BUT MINOR PART OF MANY INDIVIDUALS' WORK LIVES BUT THE DRUMBEAT OF DISAPPOINTMENT SOMETIMES CAN SIGNAL SOMETHING MUCH MORE SERIOUS YOU'VE STAYED TOO LONG IN YOUR JOB A COMMON CAREER AFFLICTION IT ISN'T EASY TO HEAR THE SOUND OF YOUR CAREER HITTING A DEAD END HOWEVER SOME PEOPLE SIMPLY HOPE THINGS WILL IMPROVE AND SO REFUSE TO ACCEPT THE NEED TO CHANGE JOBS CAREER EXPERTS SAY OTHERS RECOGNIZE REALITY TOO LATE PEOPLE IGNORE SIGNALS AND GET BLINDSIDED WHEN THEY GET LAID OFF OR FIRED SAYS LILI PRATT A SAN JOSE CALIF VICE PRESIDENT OF ENTERCHANGE AN OUTPLACEMENT AND CAREERCOUNSELING FIRM JOYCE A SCHWARZ A LOS ANGELES CAREER CONSULTANT ADDS PEOPLE SPEND MORE TIME PLANNING THEIR VACATIONS THAN THEIR CAREERS THEY SIT AND WAIT FOR AN OUTSIDE FORCE TO MOTIVATE THEM TO LEAVE CONSIDER KAREN RUBIN OF COVINA CALIF LAST YEAR SHE QUIT AFTER SEVEN YEARS AS FOODSERVICE DIRECTOR OF A 13000STUDENT CALIFORNIA SCHOOL DISTRICT MS RUBIN SAYS SHE REALIZES SHE STAYED THREE YEARS TOO LONG DESPITE OVERWHELMING SIGNS THAT THE JOB NO LONGER MADE SENSE FOR HER I STARTED TO RESENT THE PLACE AND THE PEOPLE IN IT I RESENTED MY BOSS I GOT IRRITATED WITH THE PEOPLE I WORKED WITH I WAS UNHAPPY AT HOME AND MY HUSBAND SAID THAT I WAS DEPRESSED SHE SAYS FEELING TRAPPED MS RUBIN SWITCHED PROFESSIONS SHE TOOK A JOB LAST JULY AS AN EDITORIAL ASSISTANT WITH THE SAN GABRIEL VALLEY TRIBUNE A SMALL DAILY NEWSPAPER DESPITE A HUGE SALARY CUT TO LESS THAN 17000 A YEAR FROM 48000 SHE SAYS THE CHANGE HAS BEEN WORTH IT IN TERMS OF SATISFACTION BUT LOSING INTEREST IN YOUR JOB ISN'T AN AUTOMATIC INDICATOR THAT YOU HAVE OUTGROWN YOUR POST CAREER COUNSELORS SAY IF YOU'RE EASILY BORED BECAUSE YOUR EXPECTATIONS CONSISTENTLY EXCEED YOUR JOB'S DEMANDS YOU MAY BE EQUALLY UNHAPPY ELSEWHERE CAUTIONS BARRY GLASSNER HEAD OF THE UNIVERSITY OF SOUTHERN CALIFORNIA'S SOCIOLOGY DEPARTMENT AND AUTHOR OF A RECENT BOOK ABOUT CAREER CRISES YOU HAVE TO BE CAREFUL NOT TO OVERREACT TO ANY SINGLE PROBLEM DR GLASSNER SAYS EXACTLY HOW MANY MEASURES ARE MEANINGFUL ENTERCHANGE USES A 15QUESTION QUIZ TO HELP INDIVIDUALS DECIDE WHETHER TO CHANGE JOBS POSITIVE ANSWERS TO 11 OR MORE QUESTIONS MEANS THEY SHOULD DO SO SOME QUESTIONS PROBE RELATIVELY OBVIOUS ISSUES SUCH AS HAVE YOU BEEN LEFT OUT OF THE DECISIONMAKING LOOP REGARDING A POSSIBLE REORGANIZATION BUT OTHERS SUGGEST YOU MAY HAVE TO LOOK FOR SUBTLER CLUES HAS YOUR RECENT PROMOTE OR FIRE ME STANCE MADE NO ONE FLINCH HAS YOUR MENTOR BEEN SIDETRACKED OR FIRED INDEED SOME OF THE MOST POWERFUL INDICATIONS THAT IT'S TIME TO GO MAY BE THE HARDEST FOR UNHAPPY EMPLOYEES TO SENSE AS THEY GREW MORE DISSATISFIED WITH THEIR JOBS MANY PROFESSIONALS INTERVIEWED FOR DR GLASSNER'S BOOK FOUND THEY ALSO BECAME LESS AGITATED BY OTHERWISE DISTURBING EVENTS THEY NO LONGER BECAME UPSET FOR EXAMPLE WHEN THEY WERE PASSED OVER FOR A PROMOTION WHEN THINGS THAT SHOULD BOTHER YOU DON'T IT INDICATES YOU'VE GIVEN UP DR GLASSNER SAYS YOU'VE BEEN SPINNING YOUR WHEELS SO LONG THAT DISTURBING THINGS JUST SEEM NORMAL SARAH BINGHAM EXPERIENCED A SIMILAR DETACHMENT LESS THAN A YEAR AFTER SHE BEGAN MANAGING A DOCUMENTARYFILM PRODUCTION OFFICE IN NEW YORK TWO YEARS AGO I REALIZED I WAS HAVING ENTIRE CONVERSATIONS WITH STAFF ABOUT IMPORTANT THINGS BUT THAT I WAS SIMPLY ON AUTOMATIC PILOT SAYS MS BINGHAM 32 PEOPLE WOULD ASK MY OPINION OF THINGS HOW A PICTURE LOOKED AND I WOULD SAY FINE' AND WHEN I WENT HOME I WOULD REALIZE I ACTUALLY HATED THAT PICTURE NOTHING I SAID WAS CONNECTED TO MY HEART OR BELIEFS MS BINGHAM RECENTLY RESIGNED SHE SAYS SHE NOW IS FAR HAPPIER WORKING PARTTIME MANAGING A CLOTHING STORE IN NEW YORK'S GREENWICH VILLAGE WHILE SHE IS EARNING LESS MONEY IT'S A CHANCE TO REALLY STEP BACK SHE NOTES I AM FIGURING OUT WHAT I AM REALLY GOOD AT IT BUT A STANDARD LIST OF QUESTIONS MAY NOT ADEQUATELY MEASURE WHETHER YOUR JOB HAS REACHED A DEAD END DR GLASSNER BELIEVES PEOPLE CAN STUMBLE BY SUBSCRIBING TO CONVENTIONAL CAREER WISDOM HE EXPLAINS FOR INSTANCE FAILING TO GET A RAISE REGULARLY NEEDN'T MEAN THAT YOU SHOULD HUNT FOR A NEW JOB IF YOU LIKE YOUR WORK AND DON'T REQUIRE MORE MONEY DR GLASSNER ADVISES THAT YOU CREATE YOUR OWN SHORT LIST OF SPECIFIC AND REALISTIC JOB GOALS I WANT TO HELP TAKE MY COMPANY TO THE NEXT LEVEL IS TOO BROAD I WANT TO IMPROVE THE BOTTOM LINE FOR MY DIVISION IS BETTER YOU SHOULD ASSESS YOUR LIST EVERY FOUR TO SIX MONTHS IF YOU ACHIEVE YOUR TOP TWO OR THREE PRIORITIES MOST OF THE TIME AND THE REST AREN'T COMPLETELY IGNORED DR GLASSNER SAYS THEN YOU'RE PROBABLY IN PRETTY GOOD SHAPE YOU SHOULD STAY PUT AT LEAST FOR NOW 9403230088 940323 POLITICS & POLICY WHITE HOUSE FIGURE FAILED TO PAY TAXES ON NANNY WASHINGTON WHITE HOUSE ASSOCIATE COUNSEL WILLIAM KENNEDY III DISCLOSED THAT HE FAILED TO PAY 805 IN 1991 STATE AND FEDERAL TAXES OWED ON WAGES PAID TO HIS FAMILY'S NANNY MR KENNEDY FORMER MANAGING PARTNER OF ROSE LAW FIRM IN LITTLE ROCK ARK SAID HE PAID THE OVERDUE TAXES INCLUDING SOCIAL SECURITY AND ARKANSAS INCOME TAXES THREE WEEKS AGO HE IS ONE OF THE WHITE HOUSE OFFICIALS WHO SCREENS PROSPECTIVE PRESIDENTIAL APPOINTEES FOR ETHICAL PROBLEMS THE DISCLOSURE FOLLOWS A REPORT IN THE WALL STREET JOURNAL EARLIER THIS WEEK THAT MR KENNEDY WAS DELINQUENT IN MAKING SOCIAL SECURITY PAYMENTS FOR THE PARTTIME NANNY DURING THE FIRST THREE QUARTERS OF 1992 IN JANUARY 1993 MR KENNEDY PAID 2081 IN 1992 TAXES INTEREST AND LATE PENALTIES INCLUDING 1352 IN SOCIAL SECURITY TAXES AND 300 IN STATE TAXES IN AN INTERVIEW YESTERDAY MR KENNEDY SAID HE WASN'T TRYING TO MISLEAD ANYBODY BY PAYING THE OVERDUE 1992 TAXES UNDER HIS WIFE'S PREVIOUS MARRIED NAME 9403230086 940323 TECHNOLOGY & HEALTH STUDY INDICATES ABBOTT EPILEPSY DRUG CAN EASE EFFECTS OF MANIC DEPRESSION BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS REPORTED NEW EVIDENCE THAT A DRUG USED FOR EPILEPSY SEIZURES ALSO OFFERS SIGNIFICANT RELIEF FOR THE STORMY MOODSWINGS OF MANIC DEPRESSION THE EPILEPSY DRUG ABBOTT LABORATORIES'S DEPAKOTE BROUGHT PATIENTS DOWN FROM EPISODES OF MANIA JUST AS EFFECTIVELY AS THE WIDELY USED DRUG LITHIUM THE STUDY CONCLUDED IN SOME CASES DEPAKOTE ALSO CAUSED FEWER SIDE EFFECTS THAN LITHIUM IN THE STUDY'S PATIENTS THE STUDY STIRRED EXCITEMENT AMONG DOCTORS AND PATIENT GROUPS WHO SAID IT COULD HELP OFFER THE NATION'S 25 MILLION MANICDEPRESSION PATIENTS A BADLY NEEDED ALTERNATIVE TO LITHIUM ABOUT A THIRD OF MANICDEPRESSIVES AREN'T HELPED BY LITHIUM OR DEVELOP INTOLERABLE SIDE EFFECTS SUCH AS VOMITING AND DIARRHEA ABBOTT SAID IT WILL USE THE NEW STUDY TO BOLSTER ITS OCTOBER 1992 APPLICATION FOR FEDERAL REGULATORY APPROVAL TO MARKET DEPAKOTE AS A MANICDEPRESSION TREATMENT PSYCHIATRISTS HAVE BEEN USING DEPAKOTE AND RELATED FORMS OF A COMPOUND CALLED VALPROIC ACID TO TREAT MANIC DEPRESSION FOR SEVERAL YEARS ALTHOUGH THE DRUG HAS NEVER BEEN APPROVED BY THE US FOOD AND DRUG ADMINISTRATION FOR THAT USE FROM A PUBLICHEALTH PERSPECTIVE IT'S ALSO IMPORTANT TO HAVE THESE LARGE STUDIES BECAUSE WITHOUT THEM WE RUN THE RISK OF HAVING THESE KIND OF TREATMENTS NOT COVERED BY INSURANCE SAID FREDERICK GOODWIN A MANICDEPRESSION AUTHORITY AND DIRECTOR OF THE NATIONAL INSTITUTE OF MENTAL HEALTH LITHIUM MADE BY NUMEROUS COMPANIES CURRENTLY IS THE ONLY DRUG FORMALLY APPROVED TO TREAT MANIC DEPRESSION ANOTHER EPILEPSY DRUG CIBAGEIGY CORP'S TEGRETOL HASN'T RECEIVED FDA APPROVAL FOR MANIC DEPRESSION BUT IS ALSO WIDELY USED FOR THE DISORDER AS AN ALTERNATIVE TO LITHIUM THE NEW STUDY PUBLISHED IN THIS WEEK'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION EXAMINED 179 HOSPITAL PATIENTS WITH ACUTE EPISODES OF MANIA THE PATIENTS WERE TREATED WITH DEPAKOTE LITHIUM OR A PLACEBO THE RESULTS 48 OF DEPAKOTE PATIENTS SHOWED A SIGNIFICANT IMPROVEMENT COMPARED WITH 49 OF LITHIUM PATIENTS AND 25 OF PLACEBO PATIENTS BY ALMOST ANY YARDSTICK BOTH WERE TWICE AS BENEFICIAL AS THE TINCTURE OF TIME' SAID CHARLES BOWDEN THE UNIVERSITY OF TEXAS PSYCHIATRIST WHO LED THE STUDY THE RESULTS ALSO SHOWED THAT IN CERTAIN SIDE EFFECTS DEPAKOTE TOOK A MILDER TOLL THAN LITHIUM SOME 14 OF DEPAKOTE PATIENTS EXPERIENCED UPSET STOMACH COMPARED WITH 25 OF LITHIUM PATIENTS AND 22 OF DEPAKOTE PATIENTS WERE TROUBLED WITH HEADACHES COMPARED WITH 39 OF LITHIUM PATIENTS TO BE SURE DEPAKOTE IS A POTENT DRUG WITH POTENTIALLY SERIOUS SIDE EFFECTS SUSAN DIMEMEENAN EXECUTIVE DIRECTOR OF THE NATIONAL DEPRESSIVE AND MANICDEPRESSIVE ASSOCIATION SAID SHE BEGAN TAKING THE DRUG FOR HER MANIC DEPRESSION SIX YEARS AGO AFTER SHE STOPPED TOLERATING LITHIUM HER HAIR FELL OUT SHE GAINED 40 POUNDS AND DEVELOPED A HAND TREMOR BUT THOSE SYMPTOMS EVENTUALLY WENT AWAY AND TODAY SHE EFFUSES ABOUT THE DRUG THOUGH IT STILL GIVES HER OCCASIONAL STOMACH PAIN AND DIARRHEA IT HAS MADE A TREMENDOUS DIFFERENCE BY SMOOTHING OUT HER WILD SWINGS TO MANIC HIGHS SHE SAID DR BOWDEN AND SEVERAL OF THE STUDY'S OTHER AUTHORS OWN STOCK IN ABBOTT OR HAVE RECEIVED PAYMENTS FROM THE DRUG COMPANY FOR TALKS OR CONSULTING ABBOTT HELPED FUND THE STUDY AND PUBLICIZE ITS RESULTS 9403230085 940323 CORPORATE FOCUS HOMESTAKECORONA MERGER SURPASSES EARLY FORECASTS COMBINED GOLD MINING COMPANY IS NOW MORE THAN THE SUM OF ITS PARTS BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO AS ACQUISITIONS GO HOMESTAKE MINING CO'S PURCHASE OF INTERNATIONAL CORONA CORP IN 1992 WAS ANYTHING BUT CELEBRATED MANY INDUSTRY ANALYSTS SAID IT WAS DOOMED TO FAIL AND ONE EVEN COMPARED IT TO THE ILLFATED LTVREPUBLIC STEEL MERGER WHICH RESULTED IN A LONG SPELL IN BANKRUPTCY COURT THEY HAVE BEEN PROVED WRONG SO FAR HOMESTAKE'S PURCHASE OF CORONA SEEMS TO HAVE SOLVED THE TWO GOLDMINING FIRMS' BIGGEST PROBLEMS AND GIVEN HOMESTAKE A NEW LEASE ON LIFE CORONA HAD MORE DEBT THAN IT COULD AFFORD AND HOMESTAKE HAD HIGHCOST PRODUCTION SAYS PETER STEEN THE FORMER CORONA PRESIDENT WHO IS NOW PRESIDENT OF HOMESTAKE WHAT THE MERGER DID WAS GIVE US A GOOD CHANCE TO START OVER BECAUSE HOMESTAKE HAD VERY LITTLE DEBT ABOUT 123 MILLION AT THE TIME OF THE ACQUISITION IT WAS ABLE TO ABSORB CORONA'S 227 MILLION LONGTERM DEBT AND STILL MAINTAIN A MODERATE DEBTTOEQUITY RATIO TODAY THEIR COMBINED LONGTERM DEBT HAS BEEN TRIMMED TO 283 MILLION AND COMBINING WITH CORONA GAVE HOMESTAKE THE CHANCE TO PUT MR STEEN A WELLRESPECTED OPERATIONS MAN AT THE HELM WHERE HE COULD START TO ATTACK HOMESTAKE'S OPERATIONAL PROBLEMS HOMESTAKE WHICH COMPLETED THE ACQUISITION IN JULY 1992 HAS CUT PRODUCTION COSTS EVEN AT ITS OLDEST AND LEASTEFFICIENT MINE AND DRASTICALLY TRIMMED ITS CORPORATE OVERHEAD IT HAS COME UP WITH A DEVELOPMENT PLAN FOR ESKAY CREEK ITS NORTHWESTERN CANADA GOLD MINE THAT SATISFIES METALS ANALYSTS AND HAS TRIMMED AWAY ITS SMALL INEFFICIENT PROPERTIES IN SPITE OF SEVERE CUTS IN ITS EXPLORATION BUDGET WHICH REQUIRED CLOSING 12 OF ITS 15 WORLDWIDE EXPLORATION OFFICES THE COMPANY HAS TURNED UP ONE OF THE MOST PROMISING GOLD PROSPECTS IN THE US IN DECADES FURTHER SURPRISING ANALYSTS CORONA'S ENTREPRENEURIAL RISKTAKING STYLE AND HOMESTAKE'S CONSERVATISM HAVE BLENDED SUCCESSFULLY WHILE HOMESTAKE HAS REFUSED TO SHED ITS STODGY AVERSION TO FUTURES MARKETS AND OTHER PRICEPROTECTION TOOLS IT HAS ADOPTED A CORONALIKE ADVENTUROUSNESS IN EXPLORATION STRIKING OUT IN NEW TERRITORIES SUCH AS SOUTH AMERICA THAT IT HAD ALWAYS SHUNNED IN FAVOR OF SAFER BUT LESS PROMISING CLIMES A YEAR AGO I WAS VERY SKEPTICAL THAT HOMESTAKE COULD CUT COSTS AND BOOST EARNINGS SAYS MARC COHEN ANALYST AT KIDDER PEABODY BUT THEY'RE MAKING POSITIVE PROGRESS IN 1993 THE COMPANY REPORTED NET INCOME OF 525 MILLION OR 38 CENTS A SHARE COMPARED WITH A NET LOSS OF 1758 MILLION OR 131 A SHARE IN 1992 THE 1993 RESULTS INCLUDED A WRITEDOWN OF 128 MILLION AND A GAIN FROM THE SALE OF SMALL MINING PROPERTIES OF 17 MILLION THE 1992 LOSS INCLUDED WRITEDOWNS OF 1303 MILLION AND A LOSS FROM RESTRUCTURING EXPENSES OF 484 MILLION THE COMPANY OF COURSE STILL FACES DIFFICULT CHALLENGES FIRST AND FOREMOST IT MUST KEEP FINDING GOLD AND A LOT OF IT TO BE ABLE TO MAINTAIN ITS PRODUCTION ITS ESKAY CREEK DEVELOPMENT WILL REQUIRE OVERCOMING SOME TOUGH TRANSPORTATION AND WEATHER HURDLES AND CONGRESS MAY SLAP A ROYALTY ON METALS MINED ON GOVERNMENT LAND WHICH COULD RENDER ITS LATEST GOLD FIND UNECONOMIC HOMESTAKE FACED ITS MOST DIFFICULT TASK EVEN BEFORE IT BOUGHT CORONA IMPROVING ITS NAMESAKE MINE IN LEAD SD AT THE TIME THE HOMESTAKE MINE WAS STILL USING MINING METHODS DEVELOPED 117 YEARS EARLIER WHEN THE ORE BODY WAS HUGE AND RICH BUT AS THE ORE BODY NARROWED THOSE METHODS DIDN'T WORK AS WELL AND ATTENTION TO SAFETY HAD SLIPPED TO FIX THE MINE MR STEEN BROUGHT BACK A FORMER MINE MANAGER AL WINTER WHO HAD A RECORD OF WORKING WELL WITH THE RANK AND FILE MR WINTER REDESIGNED THE MINING PLAN TO TARGET HIGHERGRADE MATERIAL RAISING THE GRADE OF ORE SENT TO THE SMELTER TO ABOUT 0225 OUNCE PER TON FROM ABOUT 017 OUNCE PER TON HE ALSO CLOSED THE LEASTPRODUCTIVE SECTIONS OF THE MINE AS PART OF A NEW SAFETY PROGRAM SUPERVISORS WERE GIVEN A SAFETY CHECKLIST THAT REQUIRED THEM TO CHECK EQUIPMENT AND PASSAGEWAYS ENSURE ALL WORK WAS BEING DONE SAFELY AND PERFORM ONE ACT OF SAFETY SUCH AS MORE SAFELY POSITIONING EQUIPMENT AT THE BEGINNING OF EACH SHIFT AS A RESULT ACCIDENTS PER 100000 MANHOURS DECLINED TO 418 IN 1993 FROM 651 IN 1991 IN THE MINE IN THE MILL THE RATE FELL TO ZERO LAST YEAR FROM 542 IN 1992 AND AS SAFETY IMPROVED SO DID PRODUCTIVITY THE WORK REVIEW AT HOMESTAKE STILL ISN'T OVER MR STEEN SAYS BUT ALREADY THE COMPANY HAS REDUCED CASH PRODUCTION COSTS AT THE MINE TO 268 AN OUNCE IN 1993 FROM 377 AN OUNCE IN 1991 ONE COULD ARGUE THAT THEY SHOULD HAVE DONE THESE THINGS EARLIER MR COHEN SAYS BUT THEY'VE REALLY BUSTED THEIR BUTTS TO SQUEEZE THESE COSTS OUT THINGS ARE LOOKING UP ELSEWHERE TOO EVEN AT 50OWNED ESKAY CREEK WHICH HOMESTAKE CONSIDERED OVERVALUED WHEN IT WAS ACQUIRED FROM CORONA THE COMPANY TOOK WRITEDOWNS OF 176 MILLION IN 1991 AND 1992 ON THE PROPERTY WORSE THE COMPANY COULDN'T FIND ANY SMELTERS INTERESTED IN HANDLING THE DEPOSIT'S COMPLEX ORE HOMESTAKE APPEARED DOOMED TO BUILDING AN AUTOCLAVE UNIT A TECHNICALLY EXPENSIVE AND TRICKY PRESSURIZED SMELTER TO TREAT THE ORE BUT NOW ORE SUPPLIES HAVE DECLINED WORLDWIDE AND HOMESTAKE IS NEGOTIATING WITH SEVERAL WILLING SMELTERS THAT HAS CUT THE EXPECTED COST OF DEVELOPING ESKAY TO 75 MILLION FROM ABOUT 225 MILLION AND IN A STROKE OF EITHER LUCK OR EXPLORATION GENIUS THE COMPANY DISCOVERED A MAJOR ORE BODY IN NEVADA CALLED EUREKA WHICH HAS SPURRED A MODERNDAY GOLD RUSH IN THE AREA THE COMPANY'S PRELIMINARY DRILLING INDICATES THE 37MILELONG STRIKE HOLDS VERY HIGH ORE GRADES ALTHOUGH GOLD RESERVE ESTIMATES WON'T BE AVAILABLE UNTIL A 4 MILLION DRILLING PROGRAM IS COMPLETED THIS SUMMER THE ONLY THING THAT HASN'T GONE RIGHT FOR HOMESTAKE IN THE PAST 18 MONTHS IS ITS 167 STAKE IN MAIN PASS 229 SAYS JOHN TUMAZOS ANALYST AT DONALDSON LUFKIN & JENRETTE THE OFFSHORE GULF OF MEXICO SULFUR AND OIL PROJECT WHICH IS OPERATED BY FREEPORTMCMORAN RESOURCE PARTNERS LP HAS SUFFERED FROM LOW OIL PRODUCTION AND LOW OIL AND SULFUR PRICES SINCE BEGINNING OPERATIONS IN 1991 HOMESTAKE TOOK AN AFTERTAX WRITEDOWN OF 128 MILLION ON THE PROJECT IN 1993 AND HAD A PRETAX OPERATING LOSS OF ABOUT 99 MILLION ON IT FOR THE YEAR OVER THE NEXT FEW YEARS HOMESTAKE WILL FACE PLENTY MORE HURDLES FINDING ENOUGH ORE TO REPLACE THE 18 MILLION OUNCES HOMESTAKE MINES FROM ITS RESERVES EACH YEAR IS DIFFICULT FOR ANY COMPANY EVEN ONE WITH A STRIKE AS BIG AS EUREKA BECAUSE OF ITS REMOTE LOCATION AND EXTREME COLD ESKAY CREEK WILL BE DIFFICULT TO BRING INTO PRODUCTION AND HOMESTAKE WILL HAVE TO WORK HARD TO KEEP ITS WORK FORCE HAPPY EXPECTED MINING LAW CHANGES INCLUDING A PROPOSED ROYALTY ON GOLD PRODUCTION FROM PUBLIC LANDS COULD THREATEN THE VIABILITY OF EUREKA WHICH IS ON CLAIMS STAKED ON GOVERNMENT LAND AND WITHOUT THE USE OF HEDGING TOOLS THE COMPANY IS MORE VULNERABLE THAN MOST TO GOLDPRICE DOWNTURNS BUT FOR NOW THOSE FORMERLY SKEPTICAL ANALYSTS ARE PLEASED WITH AND SOMEWHAT SURPRISED AT HOMESTAKE'S SUCCESS IN ABSORBING CORONA I DIDN'T EXPECT THIS MUCH PROGRESS SAYS MR TUMAZOS THE DONALDSON LUFKIN ANALYST I COULDN'T HAVE HOPED FOR ANYTHING BETTER 9403230084 940323 BUSINESS BRIEF CIRCA PHARMACEUTICALS INC HITECH PHARMACAL PURCHASE VALUED AT ABOUT 64 MILLION CIRCA PHARMACEUTICALS INC SAID IT PLANS TO ACQUIRE HITECH PHARMACAL CO IN A STOCK TRANSACTION VALUED AT ABOUT 64 MILLION UNDER THE LETTER OF INTENT EACH SHARE OF HITECH WOULD BE EXCHANGED FOR APPROXIMATELY 1044 SHARES OF CIRCA FOR A TOTAL OF 49 MILLION CIRCA SHARES THE COMPANY SAID IN NASDAQ STOCK MARKET TRADING HITECH CLOSED AT 12375 A SHARE UP 50 CENTS IN HEAVY TRADING CIRCA CLOSED AT 12875 A SHARE DOWN 375 CENTS IN TRADING ON THE AMERICAN STOCK EXCHANGE THE TRANSACTION IS SUBJECT TO A DEFINITIVE AGREEMENT DUE DILIGENCE AND APPROVAL BY EACH COMPANY'S STOCKHOLDERS HITECH IN AMITYVILLE NY MAKES GENERIC OVERTHECOUNTER AND PRESCRIPTION DRUG PRODUCTS AND HEALTHCARE PRODUCTS CIRCA IN COPIAGUE NY MAKES OVERTHECOUNTER DRUG PRODUCTS AND IS DEVELOPING PRESCRIPTION DRUGS THAT EMPLOY ALTERNATIVE DRUGDELIVERY SYSTEMS CIRCA OWNS A 50 INTEREST IN SOMERSET PHARMACEUTICALS INC A TAMPA FLA DRUG MARKETER 9403230083 940323 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN SEVERING TIES TO AN EMPLOYER MAY LEAD TO TRICKY TAX QUESTIONS SUPPOSE YOU LOST YOUR JOB LAST YEAR IN A CORPORATE RESTRUCTURING AS PART OF THE SEPARATION AGREEMENT YOU SIGNED A WAIVER RELEASING YOUR FORMER EMPLOYER FROM ANY POTENTIAL FUTURE CLAIMS AND YOUR FORMER EMPLOYER GAVE YOU SEVERANCE PAY ACCORDING TO THE IRS SOME PEOPLE WHO ALREADY HAVE FILED RETURNS THIS YEAR ARE CALLING SUCH PAYMENTS NONTAXABLE DAMAGES WRONG IRS OFFICIALS INSIST THEY SAY TWO COURT CASES SHOW THAT PAY IS FULLY TAXABLE BUT IT ISN'T ALWAYS QUITE SO SIMPLE ACCOUNTANTS SAY IF IT IS SEVERANCE PAY THEN IT IS TAXABLE INCOME SAYS PETER I ELINSKY OF KPMG PEAT MARWICK BUT IF YOU CAN PROVE THE PAYMENT IS FOR DAMAGES OR SETTLEMENT OF A LAWSUIT FOR PERSONAL INJURIES INCLUDING AGE DISCRIMINATION THEN IT MAY NOT BE TAXABLE HE SAYS WHATEVER THE CASE NEVER ASSUME THAT MERELY SIGNING A WAIVER AUTOMATICALLY MEANS PART OR ALL OF SEVERANCE PAY IS NONTAXABLE SAYS SIDNEY KESS A NEW YORK LAWYER AND CONSULTING EDITOR AT CCH INC IT'S GOING TO BE A RARE CASE WHEN ANY SUCH PAY CAN BE COUNTED AS PAINANDSUFFERING DAMAGES WARNS MARY B HEVENER A LAWYER AT MCDERMOTT WILL & EMERY IN WASHINGTON BEWARE OF OTHER ERRORS THAT SOME PEOPLE ARE MAKING THIS YEAR THE IRS WARNS SOME TAXPAYERS HAVE OMITTED A TAX ON EARLY DISTRIBUTIONS RECEIVED FROM AN INDIVIDUAL RETIREMENT ACCOUNT OR DEFERREDPAY PLAN IRS OFFICIALS SAY IF A DISTRIBUTION ISN'T ROLLED OVER WITHIN 60 DAYS A 10 TAX GENERALLY APPLIES TO PEOPLE UNDER THE AGE OF 59 1/2 PEOPLE WHO OWE THIS TAX SHOULD LIST IT ON LINE 51 OF FORM 1040 SEPARATELY ANYONE WHO ITEMIZES DEDUCTIONS AND PUTS OTHER TAXES ON LINE 7 OF SCHEDULE A MUST SPECIFY WHAT TYPE OF TAX IT IS SUCH AS PERSONALPROPERTY TAX THE IRS SAYS SOME PEOPLE ARE OMITTING THE DESCRIPTION AND MERELY ENTERING A DEDUCTION AMOUNT ANOTHER COMMON ERROR SOME PEOPLE WHO APPEAR TO OWE SELFEMPLOYMENT TAX AREN'T INCLUDING IT THE IRS SAYS PEOPLE WHO LIST SELFEMPLOYMENT INCOME AS OTHER INCOME ON FORM 1040'S LINE 22 SHOULD COMPLETE SCHEDULE SE IF THEIR NET PROFIT WAS 400 OR MORE UNCLE SAM WANTS HELP FROM OTHER NATIONS IN CHASING TAX DODGERS TREASURY OFFICIALS ARE SETTING TOUGHER CONDITIONS BEFORE AGREEING TO TAX TREATIES FOR EXAMPLE THE US WANTS MORE TAX AND BANKACCOUNT INFORMATION ABOUT AMERICANS SUSPECTED OF HIDING INCOME ABROAD SAYS CYNTHIA BEERBOWER TREASURY'S INTERNATIONAL TAX COUNSEL THIS ISSUE IS VERY IMPORTANT TO US SHE SAYS AND WE DON'T INTEND TO PROCEED WITH TREATY DISCUSSIONS WHERE THAT LEVEL OF COOPERATION ISN'T ADEQUATE THUS A PROPOSED TREATY WITH ISRAEL IS STILL ON HOLD IN THE US SENATE SHE SAYS THE US ALSO MAY SEEK TO RENEGOTIATE OLD AGREEMENTS WITH SWITZERLAND AND LUXEMBOURG AMONG OTHERS SHE SAYS MOREOVER THE US WANTS ASSURANCES FROM OTHER COUNTRIES INCLUDING PORTUGAL AND MALAYSIA THAT OFFSHORE TAX HAVENS WILL NOT BE ABUSED SHE SAYS TREASURY WANTS PLEDGES THAT ANY TAXTREATY BENEFITS WILL BE LIMITED ONLY TO RESIDENTS AND COMPANIES OF THE COUNTRIES INVOLVED ALTHOUGH SOME LAWMAKERS WANT A TREATY WITH PORTUGAL TREASURY OFFICIALS FEAR TAX ABUSES THROUGH THE MADEIRA ISLANDS DENMARK ALSO WORRIED ABOUT THE MADEIRA ISLANDS TERMINATED ITS TAX TREATY WITH PORTUGAL EFFECTIVE NEXT YEAR FOWL PLAY EMPIRE KOSHER POULTRY OF MIFFLINTOWN PA RENEWS AN OFFER OF A FREE CHICKEN TO ANYONE AUDITED BY THE IRS THIS YEAR AUDIT VICTIMS WHO DON'T OWE MORE TAXES ALSO GET A FREE TURKEY HEY THE COMPANY SAYS WHO KNOWS BETTER THE BENEFITS OF PASSING A TOUGH TEST THAN A KOSHER POULTRY PROCESSOR A STUDY OF 688 HOOSIERS FINDS THAT WHILE 69 SAY IT'S GENERALLY WRONG TO CHEAT ON TAXES ONLY 40 SAY THEY WOULD DEFINITELY REPORT WINNINGS FROM A RAFFLE OR OTHER PRIZE OLDER TAXPAYERS WOMEN AND COLLEGE GRADUATES TENDED TO BE MORE LAWABIDING SAYS PEGGY HITE OF THE INDIANA UNIVERSITY SCHOOL OF BUSINESS A POWERFUL ALLY THE JUSTICE DEPARTMENT WILL ARGUE MONDAY IN FAVOR OF CALIFORNIA IN A SUPREME COURT CASE INVOLVING THE STATE'S AGGRESSIVE METHOD OF TAXING MULTINATIONAL COMPANIES AT STAKE ABOUT 4 BILLION IN POSSIBLE REFUNDS CONGRESS RENEWS ITS DRIVE TO REWRITE THE HEAVILY CRITICIZED NANNYTAX LAW MORE THAN A YEAR AFTER THE ZOE BAIRD AFFAIR SEN MOYNIHAN D NY AND OTHER LAWMAKERS LAUNCH A NEW CAMPAIGN TO REWRITE RULES ON PAYING SOCIAL SECURITY TAXES FOR HOUSEHOLD WORKERS CURRENTLY TAXES ARE DUE EACH QUARTER FOR EMPLOYEES PAID AT LEAST 50 A QUARTER THE SENATE FINANCE COMMITTEE AGREED YESTERDAY TO EFFECTIVELY RAISE THE THRESHOLD TO 630 A YEAR IN 1995 WITH HIGHER THRESHOLDS IN FUTURE YEARS TO REFLECT AVERAGE WAGE INCREASES THE BILL EXEMPTS WAGES PAID TO HOUSEHOLD WORKERS UNDER AGE 18 EMPLOYERS COULD FILE ANNUALLY INSTEAD OF QUARTERLY AS PART OF THEIR FEDERAL INCOMETAX RETURN THE IRS SAYS ALL THE PUBLICITY ABOUT CLINTON NOMINEES AND ADVISERS WHO DIDN'T PAY HAS PROMPTED MORE PEOPLE TO START FILING THE IRS RECEIVED 1597000 FORM 942S LAST YEAR UP 11 FROM 1992 AND THE FIRST INCREASE SINCE 1966 BRIEFS THE IRS'S BACKLOG OF UNWRITTEN REGULATIONS PROJECTS ROSE TO 576 AS OF JAN 31 FROM 572 ON DEC 31 AVERAGE INDIVIDUAL INCOMETAX REFUND SO FAR THIS YEAR 1077 UP 66 FROM LAST YEAR THE IRS SAYS 9403230082 940323 BUSINESS BRIEF ZURN INDUSTRIES INC FISCAL 4THPERIOD EARNINGS EXPECTED TO DECLINE SHARPLY ZURN INDUSTRIES INC SAID IT EXPECTS FISCAL FOURTHQUARTER OPERATING PROFIT FOR THE PERIOD ENDING MARCH 31 TO BE SUBSTANTIALLY BELOW THE OPERATING PROFIT OF 47 CENTS A SHARE REPORTED IN THE YEARAGO PERIOD THE ERIE PA COMPANY CITED LOWERTHANEXPECTED SALES OF GOLF CLUBS AND THE COMBINED EFFECT OF HIGH WARRANTY COSTS AND LOW OPERATING LEVELS IN THE BOILER EQUIPMENT BUSINESS ZURN MAKES LYNX GOLF EQUIPMENT AND SYSTEMS FOR POWER GENERATION AND WATER QUALITY CONTROL IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY ZURN SHARES FELL 25 CENTS TO 27 9403230081 940323 WHO'S NEWS USX CORP'S CHIEF GOT A 1993 INCREASE OF 50 IN TOTAL COMPENSATION PITTSBURGH USX CORP CHAIRMAN CHARLES A CORRY'S ANNUAL COMPENSATION JUMPED 50 IN 1993 TO 17 MILLION FROM 11 MILLION IN 1992 LARGELY BECAUSE HE RECEIVED A BIGGER BONUS MR CORRY'S BONUS LAST YEAR WAS 750000 UP FROM 215000 IN 1992 HIS SALARY LAST YEAR WAS 946667 COMPARED WITH 903750 IN 1992 AND MR CORRY WHO ALSO IS CHIEF EXECUTIVE OF THE OIL STEEL AND NATURAL GAS CONCERN WAS AWARDED 200000 OPTIONS AND STOCK APPRECIATION RIGHTS COMPARED WITH 80000 A YEAR EARLIER IN ITS PROXY STATEMENT USX SAID MR CORRY'S HIGHER BONUS WAS MAINLY A RESULT OF THE MORE THAN 600 MILLION IMPROVEMENT IN PROFIT FROM OPERATIONS EXCLUDING CHARGES FROM INVENTORY MARKET VALUATIONS AND MAJOR LITIGATION ACCRUALS IN 1993 COMPARED WITH 1992 MEANWHILE THOMAS J USHER PRESIDENT OF USX'S US STEEL GROUP SAW HIS ANNUAL COMPENSATION MORE THAN DOUBLE TO 870000 FROM 425000 IN 1992 LIKE MR CORRY MR USHER'S COMPENSATION INCREASE CAME ON THE STRENGTH OF HIS BONUS LAST YEAR HIS BONUS WAS 385000 HE RECEIVED NO BONUS IN 1992 THE COMPANY'S PROXY STATEMENT SAID MR USHER'S BONUS REFLECTED US STEEL'S PERFORMANCE WHICH HAD THE GREATEST IMPROVEMENT IN PROFIT FROM OPERATIONS AND CASH FLOW OVER 1992 IN THE COMPANY 9403230080 940323 ENVIRONMENT BIOPLASTIC TRIES TO COME BACK ON SMALL SCALE BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL BIODEGRADABLE PLASTIC A FIELD LITTERED WITH FAILURES IS BEGINNING TO LIVE UP TO ITS NAME A FEW BIG COMPANIES ARE MAKING MATERIALS THAT MIMIC MANY OF THE PROPERTIES OF SYNTHETIC PLASTICS YET WILL DECOMPOSE IN THE ENVIRONMENT EARLIER VERSIONS MERELY BROKE DOWN INTO TINY PIECES CARGILL INC THE GIANT MINNEAPOLISBASED COMMODITY PROCESSOR OPENED A SMALL PLANT LAST MONTH THAT MAKES PLASTIC FROM CORN A VENTURE OF THE CHEMICAL COMPANY DUPONT CO AND THE INTERNATIONAL FOOD CONCERN CONAGRA INC IS TRYING TO DO THE SAME WITH CHEESE WHEY THE BRITISH BIOSCIENCE COMPANY ZENECA GROUP PLC HAS HARNESSED MICROORGANISMS THAT INGEST CORN SUGAR TO MAKE PLASTIC BUT BECAUSE OF THE TECHNOLOGY THAT IS EVOLVING THE MARKET IS MUCH SMALLER THAN THAT ENVISIONED IN THE 1980S WHEN WALL STREET THOUGHT CONSUMER PRODUCTS FROM BEVERAGE CUPS TO DIAPERS WOULD BE MADE OF BIODEGRADABLE PLASTIC SUCH PRODUCTS MAKE UP ROUGHLY 16 BILLION POUNDS OF SYNTHETIC PLASTIC THAT END UP IN LANDFILLS EACH YEAR THE NEW GENERATION OF NATURAL PLASTICS SEEMS DESTINED FOR NICHE MARKETS THE US NAVY IS INTERESTED IN BIODEGRADABLE PLASTIC TABLEWARE BECAUSE ITS SHIPS MUST DISCHARGE FOODSOILED GARBAGE AT SEA WHEN ON EXTENDED CRUISES THE NAVY HAS FOUR YEARS TO COMPLY WITH A UNITED NATIONS TREATY THAT BANS THE DUMPING OF SYNTHETIC PLASTICS INTO THE OCEAN MANY STATES REQUIRE THAT BEVERAGECONTAINER RINGS DEGRADE BECAUSE THEY ARE A HAZARD TO WILDLIFE SOME OCEANFISHING BUSINESSES ARE INTERESTED IN BIODEGRADABLE NETS THAT WOULD EVENTUALLY DISAPPEAR IF THEY ARE SNAGGED OR LOST THE FASTFOOD INDUSTRY UNDER CONSUMER PRESSURE TO CUT ITS WASTE IS EXPERIMENTING WITH COMPOST AND MCDONALD'S CORP IS RESEARCHING NATURALPLASTIC CONTAINERS THE MARKET IS EXPECTED TO EXPAND TO HUNDREDS OF MILLIONS OF POUNDS BY THE END OF THE DECADE BUT GROWTH WILL BE SLOW BIOPLASTICS MUST GO INTO A MICROBERICH ENVIRONMENT SUCH AS A COMPOST PILE TO BREAK DOWN AND THE INFRASTRUCTURE FOR THAT IS IN ITS INFANCY BIOPLASTICS ALSO COST MORE THAN THEIR SYNTHETIC COUNTERPARTS THOUGH THE GAP IS NARROWING AND SOME DON'T PERFORM WELL WITH MICROWAVE OVENS OR HEAT AND ENVIRONMENTALISTS ARE LEERY OF CLAIMS OF BIODEGRADABLE PLASTIC BECAUSE OF THEIR EXPERIENCE FOUR YEARS AGO WITH GARBAGE BAGS HAWKED AS DEGRADABLE WHAT THEY ACTUALLY DID WAS DISINTEGRATE INTO BITS OF SYNTHETIC PLASTIC WHEN AN ADDITIVE BROKE DOWN SOME OF THOSE BIOPLASTICS CONTAINED AN ADDITIVE MADE BY ARCHERDANIELSMIDLAND CO THE GRAIN PROCESSOR WHICH HAD ACQUIRED A CORN STARCH TECHNOLOGY OVERSEAS GOT OUT OF THE BUSINESS MOBIL CORP'S CHEMICAL UNIT STRIPPED THE DEGRADABILITY CLAIM FROM ITS BOXES OF HEFTY PLASTIC GARBAGE BAGS SHORTLY BEFORE SEVERAL STATES FILED SUIT ACCUSING IT OF MAKING FALSE CLAIMS MOBIL SAYS A FERROUSOXIDE ADDITIVE WHICH IS STILL USED HELPS THE BAGS FALL APART UNDER SUNLIGHT BIODEGRADABLE PLASTIC GOT A HUMONGOUS BLACK EYE A FEW YEARS AGO SAYS PATRICK R GRUBER A CHEMIST AND THE BRAINS BEHIND CARGILL'S NATURALPLASTIC BUSINESS AND NOBODY REALLY KNOWS HOW BIG THE MARKET IS YET BUT NOW IT WORKS SOME LEADERS IN BIOPLASTIC TECHNOLOGY ARE AGRICULTURERELATED COMPANIES WHICH ARE LOOKING FOR NEW USES FOR GRAIN TO COUNTER SLUMPING EXPORTS THE HOTTEST BIOPLASTIC IS POLYLACTIDELONG USED FOR SURGICAL SUTURES BECAUSE IT DISSOLVES IT CAN BE MADE FROM CORN AND FORMULATED TO HAVE MANY OF THE PHYSICAL PROPERTIES OF POLYSTYRENE AND POLYETHYLENE TWO OF THE MOST COMMON DISPOSABLE PLASTICS THROUGH A PROCESS CALLED FERMENTATION SOME MICROORGANISMS CONVERT SUGAR TO LACTIC ACIDTHE BUILDING BLOCK FOR POLYLACTIDE A POUND OF MEDICALGRADE POLYLACTIDE FETCHES HUNDREDS OF DOLLARS CARGILL'S BREAKTHROUGH WAS FIGURING OUT HOW TO MAKE ENOUGH OF IT TO LOWER THE COST TO ROUGHLY 3 A POUND ITS TEST PLANT CAN MAKE 10 MILLION POUNDS A YEAR OF A POLYLACTIDE CALLED ECOPLA FOR COMPANIES EXPERIMENTING WITH NATURAL PLASTIC MR GRUBER FIGURES HE HAS TO GET ECOPLA'S PRICE DOWN TO AROUND 1 A POUND TO COMPETE WITH SYNTHETIC PLASTICS SUCH AS POLYETHYLENE WHICH COSTS ROUGHLY 40 CENTS A POUND IF THAT HAPPENS CARGILL PLANS TO BUILD A PLANT IN 1997 TO PRODUCE 250 MILLION POUNDS OF ECOPLA A YEAR POLYLACTIDE TECHNOLOGY IS ALSO SPARKING THE INTEREST OF FIRMS IN JAPAN AND EUROPE AS WELL AS ACX TECHNOLOGIES INC A GOLDEN COLO SPINOFF OF BREWER ADOLPH COORS CO ANOTHER TYPE OF BIOPLASTIC IS FALTERING WARNERLAMBERT CO IS STOPPING PRODUCTION OF NOVON WHOSE USES INCLUDED GOLF TEES AND PACKING PEANUTS AND IS TRYING TO LICENSE OTHER COMPANIES TO MAKE IT NOVON IS MADE THROUGH A MECHANICAL PROCESS USING CORN STARCH AND SOME SYNTHETIC MATERIALS A ROCKFORD ILL PLANT ABLE TO MAKE 100 MILLION POUNDS ANNUALLY PRODUCED ONLY A TRICKLE BECAUSE THERE WAS SO LITTLE DEMAND CLEARLY WE FELT THE MARKET WAS BIGGER SAYS STEVEN MOJO DIRECTOR OF NOVON MARKET DEVELOPMENT FOR THE PHARMACEUTICAL MAKER OUR ENTHUSIASM HAS BEEN TEMPERED THE NEW BIOPLASTICS HAVE A UNIQUE MARKETING PROBLEM AS LONG AS THEY COST SIGNIFICANTLY MORE TO MAKE MANUFACTURERS MUST PUSH NATURAL PLASTICS AS SO ENVIRONMENTALLY FRIENDLY THAT CONSUMERS ARE WILLING TO PAY A PREMIUM FOR THEM BUT BIODEGRADABILITY IS A SLIPPERY CONCEPT MANY CONSUMERS THINK IT MEANS THEY CAN SIMPLY TOSS THE STUFF IN THEIR GARBAGE AND IT WILL BREAK DOWN AT THE LANDFILL BUT EVEN NATURAL PLASTIC WON'T DEGRADE IN DRY MODERN LANDFILLS MOISTURE WARMTH AND HUNGRY MICROORGANISMS ARE NEEDED TO REDUCE THE MATERIAL TO CARBON DIOXIDE WATER AND HUMUS WHAT WE DO ISN'T GOING TO SOLVE THE LANDFILL PROBLEM SAYS WILLIAM D LUZIER THE US BUSINESS MANAGER FOR ZENECA BIOPRODUCTS THE BIOSCIENCE FIRM ADVISES CUSTOMERS TO ADVERTISE THAT ITS NATURAL PLASTIC BIOPOL WHICH COSTS 6 TO 8 A POUND REQUIRES A MICROBIALLY ACTIVE ENVIRONMENT SUCH AS A HOME COMPOST PILE IN ORDER TO DEGRADE THAT'S ENOUGH FOR MARKETERS TO PAINT THEMSELVES GREEN OUR CUSTOMERS ARE ALWAYS LOOKING FOR A MARKETING EDGE SAYS ANDREW T BERLIN PRESIDENT OF CHICAGOBASED BERLIN PACKAGING CORP WHICH MAKES BOTTLES AND JARS FROM BIOPOL THIS WAY THEY CAN DEMONSTRATE THEIR COMMITMENT TO THE ENVIRONMENT BUT IT ISN'T CLEAR THAT CONSUMERS WILL PAY MUCH MORE FOR A PRODUCT THAT IN ORDER TO JUSTIFY ITS PREMIUM PRICE MUST GO INTO A COMPOST PILE PARTICULARLY WHEN MANY DON'T HAVE ACCESS TO ONE SOME EARLY ATTEMPTS TO SELL SUCH PRODUCTS HAVE FLOPPED MINNEAPOLISBASED RETAILER DAYTON HUDSON CORP TRIED TO LAUNCH PRIVATELABEL BODYCARE PRODUCTS CALLED GOODNEST CONSUMERS WERE ASKED TO PAY 9 FOR 12 OUNCES OF ALLNATURAL INGREDIENTS AND A BOTTLE MADE OF BIOPOL THE LINE WAS SHELVED AFTER SEVERAL MONTHS SO FAR ENVIRONMENTALISTS MOSTLY ARE STANDING BEHIND EFFORTS TO RECYCLE PLASTIC BIODEGRADABLE HAS ENORMOUS MARKETABILITY BECAUSE IT IS A WARM AND FUZZY TERM SAYS RICHARD DENISON SENIOR SCIENTIST AT THE ENVIRONMENTAL DEFENSE FUND BUT IT IS REALLY JUST A SMALL NICHE 9403230079 940323 CREDIT MARKETS TREASURY PRICES SHOOT UP ON FED TIGHTENING BUT MANY PLAYERS RETAIN CAUTIOUS OUTLOOKS BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK PRICES OF US TREASURY SECURITIES SHOT HIGHER YESTERDAY WHEN THE FEDERAL RESERVE ANNOUNCED IT HAD DECIDED TO AGAIN NUDGE UP SHORTTERM INTEREST RATES THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 1 1/4 POINTS OR NEARLY 1250 FOR A BOND WITH A 1000 FACE VALUE TO 92 12/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO 685 FROM 695 ON MONDAY BUT ECONOMISTS AND MONEY MANAGERS WARNED AGAINST READING TOO MUCH INTO THE BOND MARKET'S PERFORMANCE YESTERDAY THEY ARGUED THAT IT WAS LARGELY A REBOUND FROM WEAK MARKET CONDITIONS AND THAT IT WILL ONLY BE A MATTER OF TIME BEFORE THE MARKET STARTS WONDERING WHEN THE FED WILL RAISE SHORTTERM INTEREST RATES AGAIN THIS IS A RISING INTERESTRATE ENVIRONMENT AND YOU CAN'T GET COMFORTABLE IN A BEAR MARKET SAID JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO WILLIAM GROSS A MANAGING DIRECTOR FOR FIXEDINCOME INVESTMENTS AT PACIFIC INVESTMENT MANAGEMENT CO SAID HE EXPECTED THE BOND MARKET TO HEAD INTO A PERIOD OF RELATIVE STABILITY FOR LONGERTERM SECURITIES WHILE YIELDS ON SHORTTERM AND INTERMEDIATETERM TREASURYS WILL CONTINUE TO GRADUALLY CLIMB I'D STEP BACK A BIT FROM THE EUPHORIA MR GROSS SAID THE YIELD ON THE 30YEAR BOND LIKELY REMAINS TRAPPED IN A RANGE OF 675 TO 7 MR GROSS SAID ONCE THE FED EMBARKS ON A TIGHTENING MODE IT TENDS TO PERSIST FOR A YEAR TO TWO YEARS AND WITH THAT PROBABLY BEING THE CASE NOW IT'S NOT THE RIGHT TIME TO GET OVERWHELMINGLY OPTIMISTIC ON BONDS PAUL DENOON A PORTFOLIO MANAGER AT ALLIANCE CAPITAL MANAGEMENT ALSO SAID THE MARKET'S RALLY WAS NOT LIKELY TO LAST TOO LONG I THINK WE'LL FIND A LEVEL AROUND HERE AND BUILD A BASE TYPICALLY WHEN THE FED RAISES SHORTTERM INTEREST RATES PRICES OF TREASURY SECURITIES FALL BUT TRADERS AND INVESTORS HAD BEEN EXPECTING SUCH A MOVE FOR SOME TIME AND AS A RESULT SUCH AN INCREASE HAD ALREADY BEEN PRICED INTO THE MARKET NERVOUSNESS OVER WHEN AND BY HOW MUCH THE FED WOULD RAISE INTEREST RATES HAS WEIGHED ON THE MARKET SINCE EARLY FEBRUARY WHEN THE FED TIGHTENED FOR THE FIRST TIME IN FIVE YEARS BUT YESTERDAY'S ACTION CLEARED THE AIR THE FED'S RATE INCREASE CLEARED UP THE NEARTERM UNCERTAINTY OVER THE COURSE OF MONETARY POLICY SAID SAMUEL KAHAN CHIEF EONOMIST AT FUJI SECURITIES INC THEY MADE CLEAR THAT AT LEAST FOR NOW THE FED IS CONTINUING WITH A MODERATE SLOW APPROACH TO TIGHTENING HE SAID INVESTORS FEELING A BIT MORE COMFORTABLE WITH HOW THE FED IS HANDLING MONETARY POLICY SNAPPED UP TREASURYS THAT OFFERED YIELDS FATTENED BY THE SELLOFF OF THE LAST FEW WEEKS ALTHOUGH IT ISN'T YET CERTAIN EXACTLY HOW MUCH HIGHER THE FED WANTS TO PUSH SHORTTERM INTEREST RATES ANALYSTS BELIEVE THE CENTRAL BANK NOW WANTS THE FEDERALFUNDS RATE THE RATE AT WHICH BANKS LEND EACH OTHER MONEY OVERNIGHT AT 35 BACK ON FEB 4 THE FED HAD NUDGED THE FUNDS RATE UP TO 325 FROM 3 ANALYSTS EXPECT THE FED TO INDICATE TO THE MARKET THIS MORNING PRECISELY WHERE THE FUNDS RATE SHOULD BE AS IT DID IN FEBRUARY THE FED ISSUED AN ANNOUNCEMENT THAT IT WAS TIGHTENING BUT EARLY YESTERDAY THERE HAD BEEN SOME CONFUSION IN THE MARKET WHEN THROUGH AN OPENMARKET OPERATION THE FED APPEARED TO SEND A SIGNAL THAT IT WASN'T CHANGING POLICY BUT A FED SPOKESMAN QUICKLY ATTEMPTING TO CLARIFY THE SITUATION INDICATED THAT THE POLICYMAKING FEDERAL OPEN MARKET COMMITTEE HADN'T YET MADE A DECISION AT MIDAFTERNOON HOWEVER THE FED ISSUED A BRIEF STATEMENT SAYING THAT THE FOMC HAD DECIDED TO INCREASE SLIGHTLY THE DEGREE OF PRESSURE ON RESERVE POSITIONS WHICH WAS EXPECTED TO BE ASSOCIATED WITH A SMALL INCREASE IN SHORTTERM INTEREST RATES FOLLOWING THE FED'S TIGHTENING ANNOUNCEMENT PRICES MOVED HIGHER ACROSS THE ENTIRE SPECTRUM OF TREASURY ISSUES THERE WAS GOOD BUYING BY A MIX OF SPECULATIVE ACCOUNTS AND INVESTORS WHO HAD ACCUMULATED CASH AND WERE WILLING TO PUT A PORTION OF THAT TO WORK NOW THAT THE OTHER SHOE HAS DROPPED SAID JOHN COSTAS MANAGER OF GOVERNMENT SECURITIES TRADING AT CS FIRST BOSTON INC MR COSTAS ADDED THAT THERE WAS ALSO SOME RELIEF THAT THE FED HAD NOT RAISED THE FUNDS RATE MORE THAN A QUARTER OF A PERCENTAGE POINT THE FLURRY OF INVESTOR INTEREST RESULTED IN A SOMEWHAT UNUSUAL SET OF CIRCUMSTANCES YESTERDAY TRADERS WHO BOUGHT TWOYEAR NOTES AT A GOVERNMENT AUCTION EARLIER IN THE AFTERNOON ARE HOLDING ON TO PROFITS EVEN THOUGH THE FED TIGHTENED IN WHENISSUED TRADING THE TWOYEAR NOTE FINISHED THE DAY AT A YIELD OF 501 THE TREASURY DEPARTMENT HAD AWARDED THE 1701 BILLION OFFERING AT A YIELD OF 515 THE AUCTION RESULTS WHICH WERE ANNOUNCED ABOUT A HALFHOUR BEFORE THE FED TIGHTENING DECISION HAD ALREADY SHOWED THAT INVESTORS WERE VIEWING THE YIELD LEVELS AS ATTRACTIVE THE BIDTOCOVER RATIO WHICH IS A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS AT THE AUCTION WITH THE NUMBER ACCEPTED WAS 264TO1 NONCOMPETITIVE BIDS WHICH TYPICALLY REFLECT INTEREST FROM INVESTORS OUTSIDE THE WALL STREET DEALER COMMUNITY WERE 117 BILLION IN COMPARISON OVER THE LAST 12 TWOYEAR NOTE OFFERINGS THE ISSUE HAD DRAWN AN AVERAGE BIDTOCOVER RATIO OF 274TO1 AND NONCOMPETITIVE BIDS HAVE AVERAGED 814 MILLION HERE ARE THE RESULTS OF THE TWOYEAR SALE ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED MARCH 31 AND MATURE MARCH 31 1996 THE YIELD OF REPUBLIC OF TURKEY YANKEE BONDS ROSE DRAMATICALLY ON NEWS THAT STANDARD & POOR'S CORP DOWNGRADED TURKEY'S LONGTERM FOREIGNCURRENCY DEBT TO DOUBLEB FROM TRIPLEBMINUS THE DEBT WAS ALSO PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS YANKEE BONDS ARE SECURITIES SOLD BY A FOREIGN ENTITY IN THE US ABOUT 27 BILLION OF FOREIGNCURRENCY DEBT IS AFFECTED S&P SAID MEANWHILE THE NEWISSUE MARKET WAS SLOW MANY PLAYERS WERE SIDELINED CORRECTLY ANTICIPATING THE FED'S TIGHTENING TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT YESTERDAY WITH LITTLE CHANGE IN SPREADS OR THE YIELD GAP BETWEEN CORPORATE BOND YIELDS AND THOSE OF COMPARABLE TREASURYS IN THE JUNKBOND MARKET TRADING PERKED UP WITH THE FED'S POLICY MOVE PRICES WHICH HAD BEEN LOWER DURING THE MORNING FINISHED UNCHANGED TO SLIGHTLY HIGHER THE DOWNGRADE OF THE REPUBLIC OF TURKEY'S DEBT CAUGHT THE MARKET BY SURPRISE YESTERDAY ITS 9 COUPON BONDS MATURING IN 1999 DROPPED 2 1/8 POINTS OR 2125 FOR A BOND WITH A 1000 FACE VALUE TO 945 THE YIELD ROSE TO 104 FROM 984 AND THE YIELD SPREAD OVER TREASURYS WIDENED TO ABOUT 45 PERCENTAGE POINTS FROM 375 PERCENTAGE POINTS THE BONDS WERE DOWNGRADED IN JANUARY BY BOTH S&P AND MOODY'S INVESTORS SERVICE INC BEFORE THE DOWNGRADES IN JANUARY THE YIELDS OF THE BONDS HAD BEEN AT ABOUT 25 TO 275 PERCENTAGE POINTS OVER THOSE OF TREASURYS SLIGHTLY WIDER THAN WHEN THE BONDS WERE ORIGINALLY SOLD JP MORGAN SECURITIES INC WAS THE LEAD MANAGER OF THE OFFERING IN JUNE 1992 WHEN THE BONDS WERE PRICED AT A YIELD 222 PERCENTAGE POINTS ABOVE TREASURYS THE DOWNGRADE AND CREDITWATCH PLACEMENT REFLECT A HEIGHTENED RISK THAT A WORKABLE FISCAL PROGRAM WON'T BE IMPLEMENTED IN THE NEAR TERM TO TACKLE TURKEY'S ECONOMIC CRISIS S&P SAID IN A NEWS RELEASE YESTERDAY HEAVY PUBLICSECTOR BORROWING IS THE ROOT CAUSE OF SPIRALING INFLATION AND SERIOUS BALANCEOFPAYMENTS PRESSURES YET CONTINUING DIFFERENCES AMONG THE GOVERNING AND OPPOSITION PARTIES ARE LIKELY TO SLOW IMPLEMENTATION OF AN AUSTERITY PLAN THE MARCH 27 1994 MUNICIPAL ELECTIONS AREN'T EXPECTED TO BREAK THIS POLITICAL GRIDLOCK S&P DOWNGRADED TURKEY'S DEBT IN JANUARY TO TRIPLEBMINUS FROM TRIPLEB MAINTAINING ITS LONGTERM NEGATIVE OUTLOOK MOODY'S ALSO DOWNGRADED THE DEBT THEN TO BA1 FROM BAA3 WE SENSED THAT THINGS WERE DETERIORATING SAID GUILLERMO ESTEBANEZ AN ANALYST AT MOODY'S PRICES OF MUNICIPAL BONDS LEAPED WITH TREASURYS IN BRISK TRADING AFTER THE ANNOUNCEMENT OF THE FED'S TIGHTENING FINISHING AS MUCH AS 3/4 POINT HIGHER MUNICIPAL ISSUERS SOLD MORE THAN 1 BILLION OF DEBT YESTERDAY EVEN THOUGH TRADING WAS VERY NERVOUS BECAUSE OF THE FOMC MEETING THE VENTURE INTO THE VOLATILE MARKET TURNED OUT WELL FOR A NUMBER OF THE ISSUERS AS THERE WAS A WARM RECEPTION FOR MUCH OF THE NEW SUPPLY THE PHILADELPHIA SCHOOL DISTRICT'S 160 MILLION ISSUE OF SERIES A OF 1994 GENERAL OBLIGATION BONDS WAS SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P PRICES OF MORTGAGE SECURITIES CLIMBED ALONG WITH TREASURYS FOLLOWING THE FED'S TIGHTENING IN SECONDARY TRADING OF 7 ISSUES FOR APRIL DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED 19/32 HIGHER AT 97 28/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES JUMPED 5/8 POINT TO 98 10/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES SPURTED 5/8 TO 98 3/32 THE MARKET HOWEVER CONTINUED ITS RECENT GENERAL TREND OF LAGGING BEHIND THE MORE LIQUID TREASURY MARKET AS INVESTORS CONTINUE REASSESSING AND LOCATING SPOTS FOR VALUE IN MORTGAGE SECURITIES A WAITANDSEE ATTITUDE WAS CLEAR IN THE MARKET FOR REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS WHERE JUST ONE OFFERING WAS ANNOUNCED IN ADVANCE OF THE FED POLICY SHIFT THAT DEAL WAS A 300 MILLION FREDDIE MAC REMIC SERIES G031 WHICH WAS BACKED BY GINNIE MAE 30YEAR 8 ISSUES AND UNDERWRITTEN BY KIDDER PEABODY & CO BUT OTHER REMIC MAKERS WERE DORMANT AND THE MARKET TYPICALLY LOOKS FOR SUPPORT FROM UNDERWRITERS SEEKING COLLATERAL FOR NEW REMICS 9403230078 940323 INTERNATIONAL WORLD WIRE COMPILED BY CATHERINE BOLGAR EVEN AS NEW FIGURES SHOW CHINA'S INFLATION IS SURGING ABOUT 20 OF THE 2721 DEPUTIES OF THE NATIONAL PEOPLE'S CONGRESS ABSTAINED OR VOTED AGAINST BILLS AIMED AT CURTAILING INVESTMENTS BY FREEWHEELING PROVINCES THAT ARE DRIVING UP PRICES WHILE INDUSTRIAL PRODUCTION ROSE 182 IN JANUARY AND FEBRUARY INFLATION SURGED 20 NATIONWIDE SEVEN PERCENTAGE POINTS HIGHER THAN FOR ALL OF LAST YEAR THE STATE STATISTICS BUREAU SAID THE INFLATION WAS CAUSED IN PART BY AN EXCESS MONEY SUPPLY TYPICAL OF THE LUNAR NEW YEAR HOLIDAY WHICH WAS IN FEBRUARY CHINA ALSO EASED CREDIT LATE LAST YEAR AND EARLY THIS YEAR TO AID STATE ENTERPRISES AND TO COVER SALARY INCREASES FOR CIVIL SERVANTS STARTING IN JANUARY THIS YEAR'S BUDGET WHICH INCORPORATES A NEW TAX SYSTEM AIMED AT FATTENING THE CENTRAL GOVERNMENT'S COFFERS ALSO DREW A NOTICEABLE NEGATIVE VOTE FROM DEPUTIES MORE THAN 20000 PEOPLE DEMONSTRATED IN PRAGUE AGAINST THE CZECH PARLIAMENT'S PLANS TO CHANGE LABOR AND PENSION LAWS THE PROPOSALS WOULD BAR WORKERS IN STATE SERVICES FROM JOINING TRADE UNIONS AND LET EMPLOYERS HIRE WORKERS ON SHORTTERM CONTRACTS IT WOULD ALSO RAISE THE LEGAL RETIREMENT AGE FOR MEN TO 62 FROM 60 AND BY UP TO FOUR YEARS FOR WOMEN WHO NOW RETIRE BETWEEN 53 AND 57 DEPENDING ON HOW MANY CHILDREN THEY HAVE CHINA REVERSED ITS POLICY FOR CABLE TELEVISION EMBRACING THE TECHNOLOGY UNDER TIGHT REGULATION THE OFFICIAL CHINA DAILY NEWSPAPER REPORTED CABLE TELEVISION REACHES ONLY 30 MILLION OF CHINA'S ESTIMATED 800 MILLION TV VIEWERS MOSTLY IN CITIES BUT PROVINCIAL OFFICIALS HAVE BEEN ORDERED TO PLAN FOR ITS EXPANSION CABLE TV'S PROLIFERATION TO 1300 STATIONS AND 10000 COMMUNITY CABLESERVICE COMPANIES IN 1991 TRIGGERED A CRACKDOWN A YEAR LATER AS THE COMMUNIST GOVERNMENT FEARED IT WAS LOSING CONTROL OF PROGRAMMING CHINA INDICATED IT WOULDN'T LET FOREIGN MEDIA COMPANIES PROVIDE MORE PROGRAMMING MAJOR PACIFICREGION ECONOMIES WILL GROW AN AVERAGE RATE OF 41 THIS YEAR MAINLY ON A STRENGTHENING RECOVERY IN THE US AND A SLIGHT REBOUND IN JAPAN'S ECONOMY ACCORDING TO THE PACIFIC ECONOMIC COOPERATION COUNCIL'S ANNUAL SURVEY OF 18 PACIFIC RIM COUNTRIES THE REGION'S EXPANSION RATE OF 38 IN 1993 SET A FOURYEAR HIGH THE AREA'S DEVELOPING ECONOMIES GREW BY A WEIGHTED AVERAGE OF 58 LAST YEAR THE MOST ROBUST EXPANSION SINCE 1988 MODERATING INFLATION AND INCREASED ECONOMIC INTEGRATION AMONG THE ASIANPACIFIC COUNTRIES UNDERSCORED THE 1993 PERFORMANCE ABOUT 70 OF THE COUNTRIES' TOTAL TRADE WAS WITH ONE ANOTHER THE PACIFIC RIM REGION ACCOUNTS FOR ABOUT 42 OF GLOBAL TRADE THE BOLIVIAN GOVERNMENT PASSED A LAW PERMITTING THE CAPITALIZATION AND PRIVATIZATION OF STATE PETROLEUM TELECOMMUNICATIONS RAILROAD FOUNDRY AND ELECTRICAL COMPANIES ASSETS OF STATEOWNED COMPANIES WILL BE TRANSFERRED TO NEW PRIVATE CORPORATIONS WHICH WILL OFFER HALF OWNERSHIP AND MANAGEMENT CONTROL TO DOMESTIC OR FOREIGN INVESTORS PENSIONPLAN ADMINISTRATORS WILL MANAGE THE GOVERNMENT'S 50 STAKES ON BEHALF OF THE ESTIMATED 32 MILLION ADULT BOLIVIANS RUSSIA REACHED AN AGREEMENT WITH THE GOVERNMENT OF AZERBAIJAN TO GRANT A 10 STAKE IN A MASSIVE OILDEVELOPMENT DEAL IN CASPIAN SEA TO RUSSIA'S LARGEST SEMIINDEPENDENT OIL COMPANY A CONSORTIUM OF WESTERN OIL COMPANIES IS NEGOTIATING TO DEVELOP THE FIELDS BUT AN ACCORD IS EXPECTED TO BE MONTHS AWAY THE PROJECT WOULD DEVELOP TWO CASPIAN SEA FIELDS THAT HOLD AN ESTIMATED TOTAL OF THREE BILLION BARRELS OF LIGHT OIL DEVELOPMENT COSTS COULD EXCEED 7 BILLION OVER FIVE TO 10 YEARS AN ADDITIONAL 2 BILLION WOULD BE NEEDED FOR PIPELINES TO TRANSPORT THE CRUDE WHICH IS EXPECTED TO START FLOWING ABOUT FOUR YEARS AFTER DEVELOPMENT BEGINS WITH AS MUCH AS 600000 BARRELS A DAY BY THE END OF THE DECADE IN ADDITION TO RUSSIA'S INVOLVEMENT THROUGH ITS OIL COMPANY LUKOIL THE COUNTRY HAS A STRANGLEHOLD ON EXPORT PIPELINES WHICH PASS THROUGH ITS TERRITORY AND GIVE IT THE POWER TO DEMAND PARTICIPATION RIGHTS IN THE DEVELOPMENT OF PETROLEUM RESERVES IN THE FORMER SOVIET REPUBLICS RUSSIA MAY JUSTIFY SUCH CLAIMS BECAUSE OF DEBTS OWED TO MOSCOW FOR EXPLORATION AND DISCOVERIES DURING THE SOVIET ERA TAIWAN'S LATEST PUBLIC OFFERING OF SHARES IN A STATEOWNED STEEL COMPANY HAS FLOPPED DEALING ANOTHER BLOW TO THE COUNTRY'S PRIVATIZATION PROGRAM TAIWAN'S PREVIOUS SALE OF A MACHINERY MANUFACTURER ALSO FAILED TO ATTRACT BUYERS TRAFFIC OFFENDERS IN ISRAEL MAY PAY NEW SPOT FINES BY CREDIT CARD PATROL CARS WILL BE EQUIPPED WITH CARDPROCESSING MACHINES 9403230077 940323 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CHASE RESIDENTIAL MORTGAGE CONDUIT INC A SUBSIDIARY OF CHASE MANHATTAN BANK WHICH ITSELF IS A UNIT OF CHASE MANHATTAN CORP A SHELF OFFERING OF UP TO 1 BILLION OF PASSTHROUGH CERTIFICATES REPRESENTING INTERESTS IN A POOL OF ONE TO FOURFAMILY MORTGAGE LOANS CORRPRO COS AN OFFERING OF 2087000 COMMON SHARES WITH A 30DAY OVERALLOTMENT OPTION FOR UNDERWRITERS TO BUY UP TO 313050 ADDITIONAL SHARES VIA NATWEST SECURITIES LTD AND MCDONALD & CO SECURITIES INC LA JOLLA PHARMACEUTICAL CO AN INITIAL OFFERING OF 28 MILLION COMMON SHARES AT AN ANTICIPATED 7509 A SHARE VIA D BLECH & CO OLIN CORP A PROPOSED SHELF OFFERING OF UP TO 325 MILLION OF DEBT OR EQUITY SECURITIES PROJECT SOFTWARE & DEVELOPMENT INC A PROPOSED OFFERING OF 2050000 COMMON SHARES AT AN ESTIMATED 1012 A SHARE VIA PIPER JAFFRAY INC AND FIRST ALBANY CORP TELE DANMARK A/S DENMARK AN INITIAL US OFFERING OF 259 MILLION CLASS B SHARES IN THE FORM OF AMERICAN DEPOSITARY SHARES EACH REPRESENTING ONEHALF OF ONE CLASS B SHARE VIA GOLDMAN SACHS & CO AND MERRILL LYNCH & CO WINSTON HOTELS INC RALEIGH NC AN INITIAL OFFERING OF 554 MILLION COMMON SHARES VIA MORGAN KEEGAN & CO INCEND 9403230076 940323 TEXAS JOURNAL IF THIS IS RIGHT IMAGINE BOXING'S HEALTH BENEFITS BY ROBERT JOHNSON FORGET ACUPUNCTURE AND HERBAL CURES THERE'S NOTHING LIKE A GOOD RUBDOWN WHILE YOU'RE KNOCKED OUT CHIROPRACTORS CALL THE TREATMENT MANIPULATION UNDER ANESTHESIA OR MUA AND MANY OF THEM IN TEXAS ARE LEARNING ITS SECRETS FOR USE ON EVERYTHING FROM SCIATIC PAIN TO SOME BACK DISK AILMENTS IT'S NOT NECESSARILY A CURE CAUTIONS STEPHEN CAPPS A HOUSTON CHIROPRACTOR WHO TEACHES HIS PEERS MUA ABOUT 1 OF CHIROPRACTIC PATIENTS NEED IT HE SAYS AND HE PERFORMS ONE OR TWO TREATMENTS A MONTH ONE HITCH TEXAS CHIROPRACTORS CAN'T ADMINISTER GENERAL ANESTHETICS SO A MEDICAL DOCTOR MUST BE USED JACKING UP THE COST THE GOING RATE FOR A HALFHOUR MUA IN HOUSTON 3500 ANOTHER CAVEAT MEDICAL DOCTORS SAY ANY PROCEDURE INVOLVING GENERAL ANESTHESIA CAN ENCOUNTER COMPLICATIONS SOME PATIENTS SAY MUA IS WORTH IT THEY SAY THE ANESTHESIA ALLOWS FOR MORE INDEPTH TREATMENT THAT RELIEVES CHRONIC PAIN AND SOME INSURERS WILL PAY FOR MUA WHEN IT IS MEANT TO RELIEVE PAIN PARTICULARLY IF THERE'S EVIDENCE OF PAST JOINTDISLOCATION PROBLEMS BUT MANY INSURERS SAY THEY WON'T COVER IT THERE'S NO EVIDENCE THAT MASSAGE UNDER ANESTHESIA IS AN APPROPRIATE PROCEDURE SAYS KATHY WORTHINGTON A MEDICALCLAIMS OFFICIAL FOR AETNA LIFE & CASUALTY CO BASED IN HARTFORD CONN 9403230075 940323 BUSINESS BRIEF LOMAS FINANCIAL MULLS SALE OF THE COMPANY AMID HEFTY LOSSES DALLAS LOMAS FINANCIAL CORP SADDLED WITH HEFTY LOSSES THE PAST SIX MONTHS AS MANY HOMEOWNERS REFINANCED MORTGAGES IT WAS SERVICING SAID IT IS CONSIDERING A SALE OF THE COMPANY LOMAS WHICH EMERGED FROM BANKRUPTCY COURT PROTECTION IN JANUARY 1992 SAID IT HAS RETAINED SALOMON BROTHERS INC TO ASSIST IN EVALUATING STRATEGIC ALTERNATIVES CHAIRMAN JESS HAY SAID LOMAS HAS RECEIVED UNSOLICITED EXPRESSIONS OF INTEREST FROM FIRMS IN AND OUT OF THE MORTGAGE INDUSTRY THOUGH NO OFFER IS ON THE TABLE NEXT WEEK INTERESTED PARTIES WILL BE INVITED FOR A CLOSER LOOK A COMPANY SPOKESMAN SAID MR HAY SAID THAT ALTHOUGH THE MORTGAGESERVICES CONCERN HAS BEEN ABLE TO EXPAND ITS LOAN PORTFOLIO IN THE FACE OF RECORD PREPAYMENTS BY BORROWERS THE COMPANY IS NOW WILLING TO CONSIDER A SALE OR MERGER WE'VE BEEN RUNNING VERY VERY FAST AND INVESTING SUBSTANTIAL AMOUNTS OF MONEY AND ESSENTIALLY WE'VE BEEN RUNNING IN PLACE MR HAY SAID ONE WAY OR ANOTHER WE NEED TO FIND A WAY TO STRENGTHEN OUR CAPITAL BASE IN THE SIX MONTHS ENDED DEC 31 LOMAS POSTED A NET LOSS OF 977 MILLION INCLUDING 80 MILLION OF ONETIME CHARGES FOR MORTGAGE PREPAYMENTS ANALYSTS HAVE SAID LOMAS'S PERFORMANCE HAS BEEN DISAPPOINTING AND ITS COMMON STOCK HAS SLUMPED FROM 10875 A SHARE IN NOVEMBER TO YESTERDAY'S CLOSE OF 7375 DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9403230074 940323 MACY DIRECTORS REACH ACCORD ON PLAN OUTLINE PROPOSAL DESIGNED TO PACIFY JUNIOR CREDITORS VALUES RETAILER AT 35 BILLION BY LAURA JERESKI AND PATRICK M REILLY STAFF REPORTERS OF THE WALL STREET JOURNAL RH MACY & CO'S BOARD APPROVED AN OUTLINE OF A BANKRUPTCYLAW REORGANIZATION PLAN THAT STRIKES A COMPROMISE BETWEEN THE POSITIONS TAKEN BY MACY CHAIRMAN MYRON E ULLMAN III AND BOARD MEMBER LAURENCE TISCH ACCORDING TO PEOPLE FAMILIAR WITH THE BOARD'S CONCLUSION MACY'S ELEVEN DIRECTORS UNANIMOUSLY AGREED YESTERDAY TO VALUE THE NEW YORKBASED RETAILER AT 35 BILLION LESS THAN SOME CREDITORS AND MR TISCH HAD ADVOCATED MACY'S PROPOSAL IS DESIGNED TO PACIFY THE COMPANY'S JUNIOR CREDITORS INCLUDING UNSECURED BONDHOLDERS WHO ARE OWED 13 BILLION UNDER THE PLAN THEY WOULD RECEIVE SECURITIES REPRESENTING ANY VALUE ABOVE 35 BILLION BUT MACY'S PLAN MAY NOT PLEASE SENIOR CREDITORS ENOUGH TO PREVENT THEM FROM MAKING GOOD ON THREATS TO THROW THEIR WEIGHT BEHIND FEDERATED DEPARTMENT STORES INC A MACY RIVAL AND CREDITOR THAT HAS STATED ITS DESIRE TO MERGE THE TWO DEPARTMENT STORE COMPANIES FIDELITY INVESTMENTS WHOSE MUTUAL FUNDS OWN 490 MILLION OF SENIOR DEBT HAD BEEN WORKING WITH MACY MANAGEMENT SINCE MIDJANUARY ON A JOINT PLAN EARLIER THIS WEEK DANIEL HARMETZ THE FIDELITY MANAGER WHO IS NEGOTIATING WITH MACY SAID HE WOULD NOT BACK A MACY PROPOSAL THAT VALUED THE COMPANY AT MORE THAN 35 BILLION FURTHER MACY'S PLAN VIRTUALLY ENSURES GREATER CONTENTION BETWEEN SENIOR CREDITORS AND PUBLIC BONDHOLDERS OVER THE VALUE OF THE COLLATERAL BACKING THE SENIOR CREDITORS' CLAIMS UNDER BANKRUPTCY LAW A REORGANIZATION PLAN CANNOT BE APPROVED OVER THE OBJECTIONS OF SENIOR SECURED CREDITORS SENIOR CREDITORS WHO ARE OWED ABOUT 24 BILLION PLUS INTEREST HAVE CLAIMS AGAINST ALL OF MACY'S ASSETS WHICH RUN THE GAMUT FROM REAL ESTATE TO THE VALUE OF THE MACY NAME ITSELF THE BONDHOLDERS ARE TO BE PAID ONLY AFTER SENIOR CREDITORS HAVE BEEN PAID IN FULL MACY AND ITS CREDITORS ARE PREVENTED BY A COURT ORDER FROM DISCUSSING ANY ASPECT OF THE REORGANIZATION HOWEVER CYRUS R VANCE THE COURTAPPOINTED MEDIATOR ALLOWED THE COMPANY TO RELEASE A STATEMENT YESTERDAY MACY'S BOARD EXAMINED A VARIETY OF OPTIONS MR ULLMAN SAID IN THE STATEMENT WHICH CAME AFTER AN OFTENCONTENTIOUS TWODAY BOARD MEETING HE ADDED IN THE STATEMENT THAT HE BELIEVES MACY'S PROPOSAL WILL LEAD TO A CONSENSUAL PLAN ALL CREDITORS WILL ACCEPT AND THAT THE COMPANY ENVISIONS EMERGING FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS IN JANUARY 1995 THE COMPANY HAS BEEN OPERATING UNDER BANKRUPTCY COURT PROTECTION SINCE JANUARY 1992 MR ULLMAN'S EFFORTS TO CRAFT A PLAN INVOLVING FIDELITY AND GENERAL ELECTRIC CO'S GE CAPITAL ALSO A MACY SENIOR CREDITOR APPEAR TO HAVE RUN INTO TROUBLE BECAUSE HE DID NOT FULLY INFORM THE BOARD ACCORDING TO ONE MACY BOARD MEMBER MR ULLMAN NEVER SOUGHT APPROVAL FROM MACY'S BOARD TO NEGOTIATE A DEAL WHICH WOULD HAVE TRANSFERRED CONTROL OF THE COMPANY TO FIDELITY UNDER THE PLAN MR ULLMAN AND HIS TEAM FAVORED FIDELITY WOULD HAVE ENDED UP OWNING AS MUCH AS 40 OF MACY'S STOCK THE MACY DIRECTOR SAID YESTERDAY THAT MACY'S BOARD DIDN'T BECOME AWARE OF MANAGEMENT'S NEGOTIATIONS UNTIL A REPORT APPEARED IN THE WALL STREET JOURNAL IF THERE WAS A NEGOTIATION IT WASN'T PRESENTED TO THE BOARD AS SOMETHING TO BE APPROVED BY THE BOARD HE SAID MR ULLMAN YESTERDAY DENIED THAT THE BOARD HAD BEEN KEPT IN THE DARK THE BOARD OF MACY WAS KEPT FULLY INFORMED AND INVOLVED IN THE PROCESS HE SAID HOWEVER MACY'S BOARD FIRST HEARD A FORMAL PRESENTATION ABOUT A JOINT PLAN THAT COULD INVOLVE FIDELITY ON FEB 28 FROM BLACKSTONE GROUP THE PRESENTATION PROMPTED LAURENCE TISCH A MACY BOARD MEMBER TO INVITE REPRESENTATIVES OF THE BONDHOLDERS TO PRESENT THEIR ALTERNATIVE VALUATION FOR THE COMPANY TO MACY'S FINANCE COMMITTEE ON MARCH 10 THAT SPARKED HIS ELEVENTHHOUR EFFORT TO PLACE A HIGHER VALUE ON THE COMPANY THAN MACY'S MANAGEMENT AND ADVISERS HAD PREVIOUSLY BEEN WILLING TO DO THROUGH LOEWS CORP AND ITS INSURANCE COMPANY AFFILIATE CNA MR TISCH OWNS ABOUT 52 MILLION OF MACY JUNIOR BONDS UNDER THE REORGANIZATION PLAN FAVORED BY MR ULLMAN THOSE BONDS WOULD HAVE RECEIVED NOTHING UNDER THE COMPROMISE HOLDERS OF THOSE BONDS WILL GET NEW MACY SECURITIES WHOSE VALUE DEPENDS ON WHETHER THE COMPANY IS WORTH MORE THAN 35 BILLION BESIDES MR TISCH BOARD MEMBERS A ALFRED TAUBMAN GE CAPITAL CHAIRMAN GARY WENDT AND LOUIS PAGE ALSO HAVE OWNED MACY BONDS IN THE PAST MACY'S PROPOSAL NOW FORCES FEDERATED TO COME UP WITH A MORE ENTICING OFFER IF IT IS TO CARRY OUT CHAIRMAN ALLEN QUESTROM'S ANNOUNCED INTENTION TO MERGE THE TWO RETAILERS TO DATE FEDERATED HAS KEPT ITS PLAN UNDER WRAPS RONALD TYSOE FEDERATED'S CHIEF FINANCIAL OFFICER WILL ATTEND TODAY'S MEETING SCHEDULED FOR TWO O'CLOCK IN MANHATTAN IT IS NOW UP TO MR VANCE TO DETERMINE HOW MACY'S NEGOTIATIONS WITH ITS CREDITORS SHOULD PROCEED MR VANCE IS LIKELY TO MEET WITH CREDITORS FOLLOWING TODAY'S MEETING IN ORDER TO HEAR THEIR OBJECTIONS BEFORE DECIDING WHETHER TO SOLICIT TERM SHEETS FROM OTHER INTERESTED PARTIES SUCH AS FEDERATED AND FIDELITY MR VANCE WAS APPOINTED ON FEB 22 IN ORDER TO SPEED MACY'S PROTRACTED TWOYEAR BANKRUPTCYLAW PROCEEDING GENERAL ELECTRIC CO'S GE CAPITAL UNIT IN THE PAST HAS OWNED SOME RH MACY & CO BONDS AN ARTICLE WEDNESDAY INCORRECTLY SAID THAT GARY WENDT GE CAPITAL'S CHAIRMAN HAD OWNED THE BONDS 9403230073 940323 ENTERPRISE FOWLER FINDS FRANCHISING MORE FUN THAN RETIREMENT AFTER SELLING SUCCESSFUL FIRM ENTREPRENEUR GIVES UP GOLF FOR NEW BUSINESS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL SOME BUSINESS OWNERS DREAM OF MAKING A KILLING RETIRING YOUNG AND THEN CRUISING OR PLAYING GOLF EVERY DAY W BERRY FOWLER DID ALL THAT THEN HE GOT BORED DECIDING THAT FRANCHISING WAS MORE FUN THAN GOLF HE GOT INTO BUSINESS ALL OVER AGAIN IN PORTLAND ORE 15 YEARS AGO MR FOWLER STARTED A ONEMAN TUTORING ENTERPRISE SYLVAN READING ACHIEVEMENT CENTER AND TURNED IT INTO A NATIONAL CHAIN HE EVENTUALLY RETIRED AT AGE 41 TO ENJOY THE GOOD LIFE FIVE YEARS LATER HE ABANDONED LEISURE TO WORK 60 TO 75 HOURS A WEEK BUILDING ANOTHER FRANCHISE CHAIN THIS TIME IN FITNESS CENTERS FOR CHILDREN WORK IS A LOT MORE FUN THAN BEING RETIRED AND IT'S A LOT MORE STIMULATING HE SAYS MR FOWLER HAS ASTONISHED SOME PEOPLE WHO KNEW HIM AS A LEADING EXEMPLAR OF THE LEISURE CLASS HE HAD A VERY NICE LIFESTYLE VERY COMFORTABLE SAYS MARK SCHUSTER A BELLEVUE WASH REALESTATE EXECUTIVE WHO USED TO BOAT GOLF AND PLAY CRIBBAGE WITH MR FOWLER I NEVER ENVISIONED HIM GOING BACK TO WORK AS HARD AS HE IS NOW MR FOWLER HAS FOUND ONE WAY TO SOLVE A DIFFICULT PROBLEM WHAT TO DO FOR AN ENCORE AFTER A STRIKING EARLY SUCCESS MANY ENTREPRENEURS WHO SUCCEED WHILE STILL YOUNG FIND THEMSELVES AT LOOSE ENDS UNTIL THEY CAN FIND NEW INTERESTS UNTIL A FEW YEARS AGO MR FOWLER NEVER HAD ENOUGH MONEY TO THINK HE HAD ANY CHOICE ABOUT WHETHER TO WORK HE GOT OFF TO A SLOW START TAKING SEVEN YEARS TO GET AN UNDERGRADUATE DEGREE MR FOWLER SAYS HE ATTENDED FIVE COLLEGES AND HAD A DIFFICULT TIME REQUIRING REMEDIAL READING LESSONS HE FINALLY GRADUATED IN 1973 WITH AN EDUCATION DEGREE FROM CHAPMAN UNIVERSITY IN ORANGE CALIF HIS FIRST PROFESSION HAD LOW WAGES MR FOWLER RECALLS INITIALLY EARNING 7700 A YEAR AS AN ART AND GEOGRAPHY TEACHER IN ANAHEIM CALIF BUT HE HAD ENTREPRENEURIAL FLAIR HE HAD EARNED 16500 IN THE SUMMER OF 1971 BY OPERATING ART CONCESSIONS AT TWO AMUSEMENT PARKS AND MR FOWLER HAD THE IDEA FOR A COMPANY THAT COULD HELP CHILDREN WITH READING PROBLEMS SPARING THEM THE DIFFICULTY THAT HE HAD EXPERIENCED IN COLLEGE MR FOWLER SAYS HE WAS FURTHER INSPIRED AT AGE 31 WHEN HIS MOTHER SENT HIM A PAPERBACK BOOK ABOUT MILLIONAIRES HE REMEMBERS BEING ESPECIALLY IMPRESSED BY RAY KROC THE LATE FASTFOOD PIONEER AS THE WORLD KNOWS BY NOW SOMEBODY ELSE BUILT THE FIRST MCDONALD'S BUT IT WAS MR KROC WHO FRANCHISED THE CONCEPT AND BECAME RICH SUDDENLY MR FOWLER WHOSE TEACHING SALARY HAD RISEN TO ONLY ABOUT 15000 WANTED TO BE JUST LIKE RAY KROC IN 1978 MR FOWLER QUIT HIS ANAHEIM JOB SOLD HIS HOUSE AND MOVED TO PORTLAND PARTLY BECAUSE COSTS WERE LOWER THERE I HAD 14500 AFTER I PAID OFF MY MORTGAGE AND ALL MY BILLS HE RECALLS HE USED THE MONEY TO START HIS READINGCENTER BUSINESS NAMED SYLVAN BECAUSE THE OFFICE WAS IN THE SYLVAN MEDICAL & DENTAL BUILDING IN A NEIGHBORHOOD CALLED SYLVAN HILL THOUGH MR FOWLER LACKED DEEP POCKETS AND WASN'T A RECOGNIZED EXPERT HE SAYS HE ASSUMED THAT HE COULD EXPAND HIS BUSINESS INTO A NATIONAL CHAIN AFTER ALL THE IDEA MADE SENSE AND NOBODY ELSE SEEMED TO BE FILLING THE ROLE MR FOWLER WHO HAS SINCE REMARRIED SAYS HIS WIFE AT THE TIME TOLD HIM THAT PEOPLE THOUGHT HIS TALK ABOUT A NATIONAL CHAIN WAS CRAZY BUT MR FOWLER TOOK ON A PARTNER ADDED EMPLOYEES AND MOVED TO THE SEATTLE AREA THE SINGLE CENTER GREW INTO SYLVAN LEARNING CORP WHEN KINDERCARE LEARNING CENTERS INC AGREED TO ACQUIRE SYLVAN IN APRIL 1985 IT WAS A PROFITABLE FRANCHISER WITH 67 UNITS IN OPERATION MR FOWLER WHO GOT TWOTHIRDS OF THE 53 MILLION IN PRETAX PROCEEDS SUDDENLY WAS A WEALTHY MAN THOUGH HE STAYED ON AS CHAIRMAN UNDER THE NEW OWNERS MR FOWLER JUMPED SHIP IN 1987 WHEN THEY DECIDED TO MOVE THE COMPANY HEADQUARTERS TO MONTGOMERY ALA SYLVAN SUBSEQUENTLY EVOLVED INTO SYLVAN LEARNING SYSTEMS INC A PUBLIC COMPANY BASED IN COLUMBIA MD THAT OVERSEES MORE THAN 500 UNITS WHILE SYLVAN EVOLVED MR FOWLER BECAME A HAPPYGOLUCKY EARLY RETIREE WHO THOUGHT HE WOULD NEVER WORK AGAIN FINALLY I HAD SOME MONEY HE SAYS I WANTED TO TAKE OFF AND HAVE SOME FUN HE SAYS HE WENT OUT IN A 50FOOT CABIN CRUISER AT LEAST FOUR DAYS A WEEK IN NEARBY PUGET SOUND HE PLAYED TENNIS OFTEN PRODUCED WORKS OF ART AND ENJOYED LENGTHY TRIPS ABROAD WITH HIS WIFE AND CHILDREN TO FURTHER REMOVE HIMSELF FROM HIS FORMER WORKADAY LIFE MR FOWLER IN 1991 BOUGHT A HOUSE NEAR A GOLF RESORT IN KAANAPALI HAWAII AND MOVED THERE WITH HIS FAMILY HE TOOK UP GOLF FOR THE FIRST TIME AND PLAYED NEARLY EVERY DAY EVENTUALLY SCORING IN THE LOW 90S TO HIS DELIGHT HE ALSO BEGAN FINDING BUYERS FOR HIS PENANDINK CARTOON DRAWINGS I WAS SELLING TWO OR THREE PIECES A WEEK AT PRICES BETWEEN 125 AND 275 HE RECALLS BUT FUN AS ALL THAT WAS MR FOWLER SAYS HE WAS GETTING BORED I THOUGHT I WAS GOING TO GET CEREBRAL ATROPHY ON A TRIP BACK TO THE SEATTLE AREA HE DISCOVERED HIS CURE WHEN HE PICKED UP HIS THREEYEAROLD DAUGHTER FROM A LITTLE GYM OUTLET WHERE SHE HAD PERFECTED HER SOMERSAULT MR FOWLER SAYS HE WAS SO HAPPY WITH WHAT HE SAW THAT HE BOUGHT THE SMALL COMPANY THEN 16 YEARS OLD NOW AT AGE 47 MR FOWLER IS CHAIRMAN AND CONTROLLING OWNER OF LITTLE GYM INTERNATIONAL INC IN KIRKLAND WASH HE SAYS HE AIMS TO BUILD THE FRANCHISER OF FITNESS CENTERS FOR CHILDREN INTO A CHAIN WITH AT LEAST 700 UNITS BY THE END OF THE DECADE IT'S POSSIBLE WE COULD GET TO 1100 BY THEN HE SAYS THE COMPANY SAYS IT HAS SOLD 76 FRANCHISES SO FAR OF WHICH 37 ARE ALREADY OPERATING A MASTER LICENSEE BASED IN THE US HAS AGREED TO DEVELOP 185 LITTLE GYM UNITS IN JAPAN BY NOVEMBER 1999 MR FOWLER WHO HAS BROUGHT IN PARTNERS SAYS HE CURRENTLY OWNS ONLY 41 OF LITTLE GYM BUT RETAINS TWOTHIRDS VOTING CONTROL LITTLE GYM OUTLETS OFFER GYMNASTICS AND OTHER DEVELOPMENTAL PROGRAMS FOR YOUNG CHILDREN I KEEP MY NOSE IN EVERYBODY'S BUSINESS BECAUSE WE'RE STILL IN THE STARTUP STAGE MR FOWLER SAYS THOUGH PREVIOUSLY A MONEYEARNER THE COMPANY SAYS IT HASN'T TURNED A PROFIT SINCE IT STEPPED UP ITS FRANCHISING THUS INCREASING COSTS BUT RUNNING A COMPANY AGAIN HAS REINVIGORATED THE ENTREPRENEUR MY WIFE SAYS MY ENERGY LEVEL IS A THOUSAND TIMES AS GREAT WHEN I'M WORKING AS WHEN I'M SLOGGING AROUND BEING A RETIRED GUY HE SAYS I JUST CAN'T SEE HANGING AROUND AND BEING A BUM AGAIN EVER 9403230071 940323 LEISURE & ARTS BOOKSHELF SLEUTHS AND SPIES IN MOSCOW AND MONTANA BY TOM NOLAN TIM SEBASTIAN HAS BEEN ESPECIALLY ENERGETIC IN DEMONSTRATING THE PREMATURE NATURE OF OBITUARIES BURYING THE COLD WAR THRILLER LAST RIGHTS MORROW 270 PAGES 22 IS THE FIFTH ESPIONAGE NOVEL BY THIS FORMER BBC CORRESPONDENT WHO WAS ONCE HIMSELF EXPELLED FROM THE SOVIET UNION AS AN ALLEGED SPY THE NARRATOR OF MR SEBASTIAN'S LATEST CAPABLE AND SWIFTMOVING WORK OF FICTION IS EDWARD BELL A YOUNG ENGLISHMAN WHO MAKES HIS LIVING HELPING WESTERN BUSINESS TYPES FIND THEIR WAY IN THE NEWLY OPENED EAST BELL'S CAREER IS AN OUTGROWTH OF HIS CHILDHOOD A YOUTH DOMINATED BY HIS ENIGMATIC RUSSIAN MOTHER AN EXILED DISSIDENT IT WAS AN UPBRINGING FILLED WITH SHADOWY ALLEGIANCES AND AMBIGUOUS EVENTS THE ATMOSPHERE OF THOSE YEARS IS RESURRECTED BY A MUSCOVITE DUBBED GEORGE WHO ARRIVES IN LONDON SHORTLY AFTER A FAILED RUSSIAN COUP BEARING DOCUMENTS PURLOINED FROM SECRET GOVERNMENT ARCHIVES WHEN GEORGE IS FOUND DEAD AT BELL'S MOTHER'S HOUSE AND MOTHER GOES MISSING BELL IS CATAPULTED INTO A FRANTIC TRANSEUROPEAN HUNT FOR HIS PARENT THE STOLEN PAGES AND THE TRUTH OF HIS OWN PAST A GALLERY OF NICELY SKETCHED CRANKS SPIES AND SENTIMENTALISTS OLD LOVERS AND NEW ALLIES AND ENEMIES IN DISGUISE ENLIVENS A FASTPACED IF SOMEWHAT IMPLAUSIBLE ADVENTURE IN THE END THIS BRAVE NEW WORLD ORDER SEEMS DANGEROUSLY AKIN TO THE ONE IT WAS SUPPOSED TO REPLACE A CHANGE OF SCENERY IS ABOUT ALL THAT DETROIT POLICE DETECTIVE SERGEANT FANG MULHEISEN GETS AS HE HEADS FOR THE BIG SKY COUNTRY OF MONTANA IN JOHN A JACKSON'S DEADMAN ATLANTIC MONTHLY PRESS 263 PAGES 20 IT'S NOT THE FISHING BUT A CORPSE THAT BRINGS THIS SERIES' HERO OUT WEST THE BODY OF A MICHIGAN HOODLUM INVOLVED IN A PREVIOUS MULHEISEN CHRONICLE HIT ON THE HOUSE HE LINGERS THERE IN HOPES OF TRACKING DOWN SOME OTHER MOTOR CITY FUGITIVES AN OLD AIR FORCE BUDDY NOW A COUNTY PROSECUTOR TRIES TO GET MULHEISEN TO MOVE OUT FOR KEEPS AS PART OF A NEW REGIONAL CRIMEFIGHTING TASK FORCE THE IDEA INTRIGUES MULHEISEN AND THE REGION OBVIOUSLY APPEALS TO MR JACKSON WHO PROVES AS ADEPT AT DESCRIBING THE BEAUTIES OF THE WEST AS HE IS AT CONVEYING THE GRIT AND GRIME OF URBAN MICHIGAN NOT THAT IT'S ALL SKINNYDIPPING AND NATURELOVING IN THE MOUNTAINS OF TINSTAR MONT THE VIOLENCE WREAKED BY THE OUTOFTOWN HOODS MAKES A STARK CONTRAST WITH THE SCENIC BEAUTY DEADMAN ENDS UP AS A TWISTY TALE OF HIT PEOPLE BOTH GENDERS ON THE RUN AFTER A MOB ASSASSINATION AND OF THE HIT PEOPLE SENT TO FIND THEM WITH MULHEISEN SOMEWHERE IN THE MIDDLE IT'S A CRACKERJACK STORY FILLED WITH QUIRKY CHARACTERS AND SURPRISING FLASHES OF COLOR TOLD WITH MUCH STYLE IN THE POPULOUS FIELD OF POLICE DETECTIVE THRILLERS MULHEISEN AND HIS CREATOR STAND WAY OUT FROM THE CROWD THERE ARE PROBABLY MORE FICTIONAL PRIVATE EYES THAN POLICE DETECTIVES A WRITER HAS TO WORK PRETTY HARD IT WOULD SEEM TO COME UP WITH AN OUTOFTHEORDINARY PI BUT PARNELL HALL SUCCEEDS IN MAKING STANLEY HASTINGS ONE OF A KIND BLACKMAIL MYSTERIOUS PRESS 288 PAGES 1995 IS THE NINTH CASE FOR HASTINGS THE HAPLESS FORMER WANNABE ACTOR WHO SPENDS MOST OF HIS MANHATTAN SLEUTHING TIME INTERVIEWING ACCIDENT VICTIMS AND PHOTOGRAPHING CRACKS IN THE SIDEWALK BLACKMAIL DOCUMENTS ONE OF HASTING'S MORE INTERESTING ASSIGNMENTS A BEAUTIFUL WOMAN WHO GIVES HER NAME AS SMITH HIRES HASTINGS TO PAY OFF AN ALLEGED BLACKMAILER THIS SIMPLESEEMING ERRAND BECOMES ANNOYINGLY COMPLICATED WITH VICTIM AND TORMENTOR BOTH ACTING AS IF THEY'RE IN SOME SORT OF PLAY IT TURNS OUT THAT THEY ARE BUT BY THE TIME HASTINGS KNOWS WHY HE'S KNEEDEEP IN BODIES GOADED BY POLICE CRONIES AIDED BY HIS SHARPWITTED WIFE ALICE STANLEY EVENTUALLY SORTS IT ALL OUT IN FINE COMIC FASHION EXCEPT FOR A GOOD DEAL OF FOULMOUTHED DIALOGUE BLACKMAIL IS PLEASANTLY REMINISCENT OF AN EARLIER ERA WHEN DETECTIVES LIKE NERO WOLFE AND ARCHIE GOODWIN BROUGHT SOME HUMOR TO THEIR CHORES THAT VANISHED TIME IS BROUGHT BACK PLEASANTLY BY THE REAPPEARANCE OF THAT ONCEPOPULAR TEAM OF UPPERCLASS AMATEUR SLEUTHS MR AND MRS NORTH BEGINNING IN 1940 BOTH STARRED IN DOZENS OF WITTY BOOKS BY FRANCES AND RICHARD LOCKRIDGE AS WELL AS A RADIO SHOW A TV SERIES AND A BROADWAY PLAY IN MURDER OUT OF TURN HARPERPERENNIAL 193 PAGES 8 IT IS A DEAD BODY THAT RUINS A TENNIS OUTING WHILE IN THE NORTHS MEET MURDER HARPERPERENNIAL 211 PAGES 8 THE CORPSE APPEARS IN AN EMPTY APARTMENT THE NORTHS WERE PLANNING TO USE FOR A BIG PARTY DANGER AND INTRIGUE OFTEN PLAYED A ROLE IN SOIREES OF THE PRIVILEGED CLASSES 400 YEARS AGO WHEN POETS AND PLAYWRIGHTS LIKE CHRISTOPHER MARLOWE SUPPLEMENTED THEIR PATRONAGE INCOME WITH WORK AS FREELANCE SPIES IT WAS LONG THOUGHT THAT MARLOWE WAS STABBED TO DEATH IN A MEANINGLESS BRAWL OR WAS HE ASSASSINATED BY ONE OF THE MANY FACTIONS SWIRLING AROUND ELIZABETH'S THRONE JUST HOW HE CAME TO DIE IN A HOUSE RENTED FOR PARTIES IS A STORY CHARLES NICHOLLS TELLS WITH SUCH ENGROSSING DETAIL IN THE RECKONING HARCOURT BRACE 413 PAGES 2495 THAT THE BRITISH CRIME WRITERS ASSOCIATION AWARDED THIS PIECE OF NONFICTION A GOLD DAGGER 9403230070 940323 DISCIPLINE IS URGED IN ARTICULATING POLICY ON CHINA BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S SENIOR ADVISERS AGREED THERE WASN'T ANY NEED TO ALTER US POLICY TOWARD CHINA BUT SAID THE ADMINISTRATION MUST STOP SENDING MIXED SIGNALS TO BEIJING THERE WAS A DISCUSSION OF THE NEED TO BE VERY DISCIPLINED IN ARTICULATING THE POLICY SAID A US OFFICIAL THE OFFICIAL STRESSED THE NEED TO BE VERY DISCIPLINED AND FOCUSED ON FOLLOWING THROUGH ON THE PRESIDENT'S ORDER UNDER WHICH CHINA WOULD LOSE ITS FAVORABLE TRADING STATUS WITH THE US IF IT HASN'T MADE OVERALL SIGNIFICANT PROGRESS ON HUMAN RIGHTS BY JUNE THAT MESSAGE HAS BEEN PARTLY OBSCURED IN RECENT MONTHS BY MIXED SIGNALS FROM THE ADMINISTRATION IN HIS RECENT TRIP TO CHINA SECRETARY OF STATE WARREN CHRISTOPHER UNDERSCORED THE NEED FOR CHINA TO MAKE PROGRESS IN THE SEVEN AREAS OUTLINED IN THE EXECUTIVE ORDER SIGNED BY MR CLINTON LAST SPRING AT THE SAME TIME HOWEVER SOME ECONOMIC OFFICIALS HAVE BEEN TRAVELING TO BEIJING TO IMPROVE ECONOMIC TIES BETWEEN THE US AND THE WORLD'S FASTESTGROWING ECONOMY THE PRESIDENT DIDN'T ATTEND YESTERDAY'S MEETING WHICH WAS HELD AT THE WHITE HOUSE THE ADMINISTRATION HAS BEEN TRYING SINCE LAST SEPTEMBER TO BROADEN ITS RELATIONS WITH CHINA BY EMPHASIZING ECONOMIC TRADE AND MILITARY TIES AS WELL AS THE NEED FOR BEIJING TO MEET HUMAN RIGHTS STANDARDS BUT THERE HAS BEEN A STRUGGLE WITHIN THE ADMINISTRATION OVER WHETHER ECONOMICS OR HUMAN RIGHTS SHOULD PREDOMINATE AS A RESULT THE OVERALL POLICY HAS LACKED CREDIBILITY IN BEIJING WHERE CHINA'S RULERS DOUBT THAT MR CLINTON WOULD BE WILLING TO PULL THE PLUG ON THE POTENTIALLY LUCRATIVE BUSINESS RELATIONSHIP WHILE OFFICIALS AT LAST EVENING'S MEETING CALLED FOR MORE DISCIPLINE IN ARTICULATING THE CHINA POLICY THE PRESIDENT'S ADVISERS ALSO DISCUSSED SOME OPTIONS FOR MODIFYING FUTURE POLICY ONCE THE JUNE DEADLINE IS PASSED ECONOMICS OFFICIALS SUCH AS TREASURY SECRETARY LLOYD BENTSEN BELIEVE UNILATERAL ECONOMIC SANCTIONS DON'T WORK NEVERTHELESS THERE WAS NO DISCUSSION OF MODIFYING THE EXECUTIVE ORDER NO DISCUSSION OF MODIFYING THE WAY THE ADMINISTRATION MAKES POLICY ON CHINA SAID THE US OFFICIAL 9403230068 940323 REVIEW & OUTLOOK EDITORIAL CENSORED IN ARKANSAS EARLIER IN THE WEEK WE COMMENDED LJ DAVIS'S NEW REPUBLIC COVER STORY ON WHITEWATER AND THE CULTURE OF ARKANSAS BUT MR DAVIS MODESTLY OMITTED A FASCINATING PART OF THE TALE NAMELY HIS PERSONAL MISFORTUNES IN REPORTING HIS ARTICLE THE OMISSION REFLECTS A CURIOUS DICHOTOMY IN WHITEWATER PRESS COVERAGE A LOT OF THE NEWS HAS BEEN BROKEN BY PUBLICATIONS WILLING TO REPORT WHAT THEY LEARN EVEN AT THE RISK THAT NOW AND THEN SOME OF IT MAY BE OVERTAKEN BY OTHER FACTS THE WASHINGTON TIMES THE NEW YORK TABLOIDS THE AMERICAN SPECTATOR AND THE BRITISH PRESS THE MAINSTREAM AMERICAN PRESS HAS COME IN FOR SOME DERISION OVERSEAS THE ECONOMIST LIKENED WHITEWATER TO THE 1936 EPISODE IN WHICH THE AMERICAN PRESS WAS REPORTING AND THE BRITISH PRESS COVERING UP THE ROMANCE LEADING TO THE ABDICATION OF EDWARD VIII THIS IS NOT QUITE FAIR SINCE THE STORY CAME BACK TO LIFE IN DECEMBER THE AMERICAN PRESS HAS MOSTLY DONE A COMMENDABLE JOB OF PLUMBING THE FINANCES OF ARKANSAS AND THE CLINTONS AND KIBITZING EVERY MOVE IN WASHINGTON'S PROCEDURAL CHESS FOR BETTER OR WORSE HOWEVER THE RESPECTABLE PRESS HAS SHOWN LITTLETONO APPETITE FOR PUBLISHING ANYTHING ABOUT SEX AND VIOLENCE STORIES ON THESE SUBJECTS OF COURSE CIRCULATE CONSTANTLY AMONG REPORTERS AND SHAPE UNDERSTANDING OF EVENTS WITHIN THE PRESS CORPS IF NOT AMONG ITS READERS SOMEHOW WE THINK THAT READERS OUGHT TO KNOW THE FOLLOWING ACCOUNT FROM MR DAVIS A CONTRIBUTING EDITOR TO HARPER'S MAGAZINE SINCE 1978 HE WAS RETURNING TO HIS ROOM AT LITTLE ROCK'S LEGACY HOTEL ABOUT 630 AFTER AN INTERVIEW ON THE EVENING OF FEB 13 THE LAST THING HE REMEMBERS IS PUTTING HIS KEY IN THE DOOR AND THE NEXT THING HE REMEMBERS IS WAKING UP FACE DOWN ON THE FLOOR WITH HIS ARM TWISTED UNDER HIS BODY AND A BIG LUMP ON HIS HEAD ABOVE HIS LEFT EAR THE ROOM DOOR WAS SHUT AND LOCKED NOTHING WAS MISSING EXCEPT FOUR SIGNIFICANT PAGES OF HIS NOTEBOOK THAT INCLUDED A LIST OF HIS SOURCES IN LITTLE ROCK HE DIDN'T FILE A POLICE REPORT SAYING HE WANTED TO GET OUT OF TOWN AND WASN'T SURE WHAT HAD HAPPENED TO HIM I THOUGHT I WAS WALKING ON A TRAMPOLINE FOR THREE DAYS HE TOLD US AND THEN CONSULTED HIS PHYSICIAN MR DAVIS SAYS HIS DOCTOR FOUND HIS INJURY INCONSISTENT WITH A FALL AND THAT HE'D BEEN STRUCK A MASSIVE BLOW ABOVE THE LEFT EAR WITH A BLUNT OBJECT HE SUFFERED BOTH A CONCUSSION AND AN AMNESIAC EPISODE FROM THE BLOW WITH MR DAVIS'S PERMISSION DR RICHARD WAGMAN HAS CONFIRMED THIS DIAGNOSIS TO US ALONG SIMILAR LINES THROUGHOUT THE WORLD EXCEPT IN THE UNITED STATES SALLY PERDUE IS A HOUSEHOLD NAME SHE'S A FORMER MISS ARKANSAS AND TV REPORTER WHO WENT ON ONE TALK SHOW SALLY JESSY RAPHAEL DURING THE 1992 CAMPAIGN TO SAY SHE HAD AN AFFAIR WITH BILL CLINTON IN 1983 THIS WAS ONLY BRIEFLY NOTED THOUGH THE WASHINGTON POST DID REPORT THAT JACK PALLADINO A SAN FRANCISCO PRIVATE INVESTIGATOR HIRED BY THE CLINTON CAMPAIGN TO SQUELCH BIMBO ERUPTIONS CALLED ESTRANGED RELATIVES FOR DAMAGING COMMENTS ABOUT MS PERDUE LIKE ALL THE OTHER BIMBO ERUPTIONS THIS ONE HAS BEEN SPIKED SUBJECTED TO A UNIVERSAL NEWS BLACKOUT IN THE US BUT THE SALLY PERDUE STORY TOOK A DIFFERENT TURN LAST JANUARY MS PERDUE TOLD AMBROSE EVANSPRITCHARD OF THE SUNDAY TELEGRAPH THAT SHE'D BEEN THREATENED WITH VIOLENCE IF SHE CONTINUED TO TALK SHE NAMED A NAME RON TUCKER WHO SHE SAID CLAIMED TO REPRESENT THE DEMOCRATIC PARTY SHE SAYS MR TUCKER FIRST OFFERED HER A FEDERAL JOB IN EXCHANGE FOR SILENCE AND ADDED IF I DIDN'T TAKE THE OFFER THEN THEY KNEW THAT I WENT JOGGING BY MYSELF AND HE COULDN'T GUARANTEE WHAT WOULD HAPPEN TO MY PRETTY LITTLE LEGS AFTERWARD MS PERDUE SAYS SHE RECEIVED THREATENING PHONE CALLS AND LETTERS ONE OF WHICH SHE MADE AVAILABLE TO THE TELEGRAPH SHE SAYS SHE FOUND AN UNSPENT SHOTGUN SHELL ON THE SEAT OF HER JEEP AND THAT LATER THE BACK WINDOW WAS SHATTERED SHE REPORTED THIS TO THE FBI WHICH TOLD THE TELEGRAPH THERE WAS AN ONGOING INVESTIGATION MR TUCKER'S EMPLOYER AT THE TIME JOHN NEWCOMB OF MARION MINING ADDED THE CONFIRMATION THAT MR TUCKER TOLD HIM HE HAD BEEN ASKED TO GET TO THIS WOMAN AND GET HER TO SHUT UP IN AN INTERVIEW WITH US THIS WEEK MR TUCKER RESPONDED SALLY PERDUE IS A FLAKE STIRRING UP A HORNET'S NEST I ONLY MET WITH HER FOR 10 TO 15 MINUTES ONCE I'M NOT A POLITICAL ANIMAL AND THEN DEGENERATED INTO A SERIES OF THREATS AND OBSCENITIES EDITORS AND REPORTERS HAVE TO GRAPPLE WITH A FLOOD OF STORIES CHARGES AND RUMORS OF VIOLENCE AND EVEN DEATHS IN ARKANSAS THE STATE SEEMS TO BE A CONGENITALLY VIOLENT PLACE AND FULL OF COLORFUL CHARACTERS WITH STORIES TO TELL AXES TO GRIND AND SECRETS OF THEIR OWN TO PROTECT WE BELIEVE MR DAVIS THE TELEGRAPH STORY INCLUDED A LOT OF CORROBORATION THOUGH OF COURSE NO EVIDENCE THAT ANYONE ORDERED MR TUCKER TO SAY WHAT MS PERDUE CHARGES HE SAID YET AS THE STORY DEVELOPS WE'RE INCREASINGLY COMING TO THE CONCLUSION THAT THE RESPECTABLE PRESS IS SPENDING TOO MUCH TIME ADJUDICATING WHAT THE READER HAS A RIGHT TO KNOW AND TOO LITTLE TIME WITH THE OLD SPIRIT OF STOP THE PRESSES 9403230066 940323 REVIEW & OUTLOOK EDITORIAL RETROGRADE TAXATION RUSH LIMBAUGH ALWAYS STARTS HIS RADIO SHOW WITH A TONGUEINCHEEK COUNTDOWN ON AMERICA HELD HOSTAGE THE CLINTON PRESIDENCY TODAY HE WILL NOTE IS DAY 428 EXCEPT IF YOU'RE WELLOFF OWN ONE OF 125 MILLION SMALL BUSINESSES OR INHERITED MONEY LAST YEAR FOR YOU THE CLINTON YEARS BEGAN 447 DAYS AGO ON JANUARY 1 1993 WHEN YOU BEGAN OWING THE HIGHER TAXES THAT BECAME LAW LAST AUGUST RETROACTIVE TAXATION HAS BEEN ENACTED BEFORE BUT IT REMAINS HIGHLY CONTROVERSIAL CONGRESS RAISED MINOR TAXES RETROACTIVELY 10 TIMES IN THE 1980S BUT THEY WERE IN THE NATURE OF CLOSING LOOPHOLES RAISING TAX RATES AS THE CLINTON BILL DID HAS ALMOST ALWAYS BEEN DONE IN TIMES OF NATIONAL EMERGENCY OR WAR THE LAST TIME WAS DURING THE VIETNAM WAR WHEN LYNDON JOHNSON IMPOSED A SURTAX RESENTMENT AGAINST MR CLINTON'S BACKDATED TAXATION PERSISTS REP JIM RAMSTAD OF MINNESOTA HAS 136 COSPONSORS ON A BILL TO ALLOW MEMBERS TO RAISE A POINT OF ORDER AGAINST ANY BILL WITH A RETROACTIVE TAX INCREASE BUT THE HOUSE RULES COMMITTEE THAT GRAVEYARD OF LEGISLATION HAS REFUSED TO RELEASE HIS BILL HE IS NOW CIRCULATING A DISCHARGE PETITION TO FORCE A FLOOR VOTE GEORGIA SENATOR PAUL COVERDELL AND CALIFORNIA REP ED ROYCE ARE ASKING STATES TO PASS RESOLUTIONS DEMANDING CONGRESS PASS A CONSTITUTIONAL AMENDMENT BANNING RETROACTIVE TAXATION THEY NOTE THAT EVEN RUSSIA'S NEW CONSTITUTION STIPULATES THAT LAWS INTRODUCING NEW TAXES ARE NOT RETROACTIVE A MAJORITY OF THE GEORGIA STATE SENATE ARE ALREADY COSPONSORS OF A RESOLUTION FAVORING SUCH AN AMENDMENT THE SUPREME COURT ALSO APPEARS READY TO MODIFY ITS 60YEAR TOLERANCE OF RETROACTIVE TAXATION LAST MONTH IT HEARD ARGUMENTS IN AN ESTATE TAX CASE IN WHICH A CALIFORNIA TAX ATTORNEY LOST 630000 FOR A CLIENT BECAUSE HE FOLLOWED THE LAW TO SECURE A TAX BREAK THE NEXT YEAR CONGRESS CHANGED THE LAW RETROACTIVELY CAUSING THE LOSS US V CARLTON BEGAN IN OCTOBER 1986 WHEN CONGRESS PASSED A SWEEPING TAX REFORM ACT IT ALLOWED THE EXECUTOR OF AN ESTATE TO REDUCE ITS TAX BILL IF IT SOLD SHARES OF STOCK TO A COMPANY'S EMPLOYEE STOCK OWNERSHIP PLAN ESOP THAT DECEMBER JERRY CARLTON A TAX LAWYER BOUGHT 112 MILLION OF MCI STOCK AND SHORTLY AFTERWARD SOLD IT AT A 630000 LOSS TO THE COMPANY'S ESOP HOWEVER THE TAX ADVANTAGES WERE SUCH THAT THE ESTATE'S TAX LIABILITY WAS CUT BY 25 MILLION MR CARLTON'S ACTION AROUSED THE IRS'S IRE WHICH SOUGHT A CHANGE IN THE LAW IN EARLY 1987 THEN SENATOR LLOYD BENTSEN INTRODUCED A BILL TO REPEAL THE DEDUCTION AND MAKE IT RETROACTIVE THAT FALL CONGRESS APPROVED THE REPEAL AND THE IRS PROMPTLY SENT MR CARLTON A NOTICE DEMANDING 25 MILLION HE PAID UP BUT CHALLENGED THE RETROACTIVE PAYMENT AS UNCONSTITUTIONAL THE GOVERNMENT WAS SHOCKED WHEN THE NINTH CIRCUIT COURT OF APPEALS AGREED AND THREW OUT THE BACKDATED PROVISIONS OF THE BENTSEN LAW THE COURT RULED THAT RETROACTIVE TAXATION CAN'T PASS CONSTITUTIONAL MUSTER IF CITIZENS HAVE NO ACTUAL OR CONSTRUCTIVE NOTICE OF THE CHANGE OR RELY TO THEIR DETRIMENT ON THE LAW AS THEN WRITTEN MANY LEGAL SCHOLARS SAY THE SUPREME COURT HAS HINTED IT WANTS TO RETHINK ITS RUBBERSTAMP ATTITUDE TOWARD CONGRESSIONAL TAX BILLS WHICH HAVE BECOME INCREASINGLY COMPLEX AND CAPRICIOUS AND MAY WELL AGREE WITH THE NINTH CIRCUIT SHOULD THAT HAPPEN THE COURT MAY EVEN DECIDE TO HEAR A NATIONAL TAXPAYERS UNION CHALLENGE TO THE CLINTON RETROACTIVE TAXES USING THE NINTH CIRCUIT'S REASONING NTU ARGUES THAT NO ONE AFFECTED BY THE CLINTON TAXES HAD ANY NOTICE THEY WOULD BE RAISED RETROACTIVELY FROM JANUARY 1 OF LAST YEAR UNTIL AT LEAST MIDFEBRUARY MANY TAXPAYERS ARE OF COURSE COMPLYING THIS MONTH WITH MR CLINTON'S CALL FOR RETROACTIVE PAYMENTS SETTING ASIDE ANY ARGUMENTS ABOUT TAXATION LEVELS WE CONTINUE TO THINK THAT THIS RETROACTIVITY COMPONENT IS A TRULY AWFUL AND DANGEROUS PRECEDENT TO ESTABLISH THAT THE CLINTON PRESIDENCY WOULD SO EASILY REACH FOR A GENERALIZED TAXATION ON INCOMES BACKWARD IN TIME IS MORE THAN A LITTLE REVEALING 9403230065 940323 HUGE CHINA MARKET A MIRAGE BY HOWARD C LINCOLN WHEN CHINA'S LEADERS THREW THEIR PUBLIC TANTRUM IN FRONT OF SECRETARY OF STATE WARREN CHRISTOPHER LAST WEEK IN BEIJING THEY ALLOWED US A LOOK AT THEIR REAL OPINION OF AMERICAN MOTIVES AND CHARACTER THE CHINESE IT IS CLEAR THINK THAT DESPITE OUR RHETORIC ABOUT LAWS AND RIGHTS WE WILL TOLERATE THEIR BEHAVIOR BECAUSE WE ARE SO EAGER TO REAP THE BENEFITS OF TRADE WITH THEM YET THAT HUGE CHINESE MARKET BECKONING ON THE HORIZON MAY BE A MIRAGE EVERY DAY AMERICAN PRODUCERS OF SOFTWARE VIDEO GAMES AND OTHER INTELLECTUAL PROPERTY SEE CHINESE OFFENSES THAT THREATEN ONE OF THE BASIC CONDITIONS ON WHICH WORLD TRADE RESTS THE RECOGNITION THAT PROPERTY CANNOT BE STOLEN AND PROMISES MUST BE KEPT IN CHINA US PRODUCTS ARE BEING COUNTERFEITED ON A MASSIVE SCALE WORSE THE PIRATING OF VIDEOGAME PRODUCTS IS DONE NOT BY OUTLAWS BUT BY THE CHINESE GOVERNMENT ITSELF MOST SALES AT MY FIRM NINTENDO OF AMERICA COME FROM VIDEO GAMES DEVELOPED BY INDEPENDENT AMERICAN COMPANIES THESE GAMES ARE MARVELS OF IMAGINATION AND INGENUITY IT TAKES AN AVERAGE OF TWO YEARS AND A MILLIONDOLLAR INVESTMENT TO CREATE JUST ONE OF THEM LIKE OTHER AMERICAN SOFTWARE COMPANIES NINTENDO MUST CONTINUALLY FIGHT FOREIGN COUNTERFEITING IN COURTS AROUND THE WORLD AND THROUGH TRADE TALKS TAIWAN HAS HISTORICALLY BEEN A MAJOR SOURCE OF COUNTERFEIT VIDEO GAME PRODUCTS BUT TAIWANESE COMPANIES ARE MOVING OPERATIONS TO THE CHINESE MAINLAND THERE THEY OPERATE MORE EASILY AND ADD TO THE PROBLEM IN CHINA IN A 1992 MEMORANDUM OF UNDERSTANDING WITH THE US CHINA EXPLICITLY PROMISED TO PROVIDE EFFECTIVE DETERRENCE AGAINST THE INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS IT HAS NOT DONE SO WE ESTIMATE THAT 20 MILLION COUNTERFEIT NINTENDO HARDWARE UNITS HAVE BEEN SOLD IN CHINA WITHIN THE PAST FEW YEARS ASSUMING CONSERVATIVELY THAT EACH HARDWARE OWNER HAS ALSO PURCHASED JUST ONE THREEGAME VIDEO CARTRIDGE FOR 20 NINTENDO OF AMERICA AND ITS AMERICAN AFFILIATES HAVE LOST 12 BILLION COUNTING BOTH HARDWARE AND VIDEO GAMES TO CHINESE COUNTERFEITING MORE REALISTICALLY WE ARE LOSING SEVERAL TIMES THIS FIGURE TO THE VIDEO PIRATES THE TIANJIN NEW STAR ELECTRONIC CO BASED IN THE BEIJING AREA IS ONE OF THE LARGEST CHINESE COUNTERFEITERS IN THE SUMMER OF 1993 NEW STAR SOLD MORE THAN 300 VIDEO GAME TITLES ALL APPEAR TO BE COUNTERFEITS STOLEN FROM NINTENDO AND AFFILIATED AMERICAN COMPANIES A NEW YORKBASED AMERICAN ARM OF NEW STAR'S OPERATION IS ACTUALLY SEEKING CAPITAL IN US MARKETS TO EXPAND ITS COUNTERFEITING IN CHINA AND ABROAD NEW STAR IS UNAMBIGUOUSLY CONTROLLED BY THE CHINESE GOVERNMENT THE COMPANY PRESIDENT IS DIRECTOR OF A DEPARTMENT IN THE MINISTRY OF ELECTRONICS AND MACHINERY THE STAFF IS MADE UP OF MINISTRY EMPLOYEES THE MINISTRY RECEIVES 20 OF NEW STAR'S PROFITS IN LIGHT OF THE GOVERNMENT'S ACTIVE ROLE IN THE COUNTERFEIT VIDEO TRADE IT IS INEVITABLE THAT SOFTWARE MAKERS FIGHTING CHINESE THEFT OF THEIR PROPERTY GET VIRTUALLY NO OFFICIAL HELP AFTER THE 1992 MEMORANDUM OF UNDERSTANDING CHINA DID ENACT A MODERN COPYRIGHT LAW AND SUBSCRIBED TO THE BERNE AND UNIVERSAL COPYRIGHT CONVENTIONS BUT CHINA HAS NO BORDER CONTROL SYSTEM TO PROTECT INTELLECTUAL PROPERTY ITS GRANDLY NAMED ADMINISTRATIVE AUTHORITY FOR SOFTWARE COPYRIGHT HAS BEEN GIVEN NO ENFORCEMENT CAPABILITY THE COUNTRY'S NEW NATIONAL COPYRIGHT ADMINISTRATION WILL NOT ACCEPT SOFTWARE INFRINGEMENT CASES FOR ENFORCEMENT ACTION BECAUSE THE CHINESE GOVERNMENT IS STILL DECIDING WHETHER TO GIVE JURISDICTION OVER THESE MATTERS TO THE MINISTRY OF ELECTRONICS THE SAME UNIT THAT CONTROLS NEW STAR NINTENDO ALONG WITH MANY INDEPENDENT AMERICAN DEVELOPERS OF NINTENDO GAMES AND OWNERS OF INTELLECTUAL PROPERTY USED IN THE GAMES HAS RECENTLY ASKED THE OFFICE OF THE US TRADE REPRESENTATIVE TO USE ITS SPECIAL 301 POWERS UNDER THE 1988 TRADE ACT TO DESIGNATE CHINA A PRIORITY FOREIGN COUNTRY VULNERABLE TO RETALIATORY TRADE SANCTIONS IF IT DOES NOT STOP THE THEFT OF INTELLECTUAL PROPERTY WE DO NOT TAKE THIS STEP HAPPILY WE WANT TO ENTER THE CHINESE MARKET VIA FREE COMPETITION NOT OFFICIAL THREATS OUR PRODUCTS THRIVE IN CLIMATES WHERE TRADE IS MOST OPEN AND LEAST CONSTRAINED BY GOVERNMENT EDICTS NOT IN AN ATMOSPHERE OF RETALIATION AND SANCTIONS WE WANT TO PARTICIPATE IN CHINA'S ECONOMY NOT JUST BY SELLING OUR GOODS THERE BUT BY INVESTING AND MANUFACTURING THERE YET WE WILL NEVER HAVE A FAIR CHANCE IF THE CHINESE GOVERNMENT REFUSES TO RECOGNIZE OUR OWNERSHIP OF THESE PRODUCTS AND STEADILY ACTS TO DESTROY THEIR VALUE THIS ATTITUDE OF CONTEMPT IS NOT ONLY OFFENSIVE IT MAKES CHINA A DANGEROUS PLACE TO DO BUSINESS AS WELL PIRACY HAS ALWAYS BEEN A THREAT TO INTERNATIONAL TRADE BUT IT IS ESPECIALLY SO NOW THANKS TO TECHNOLOGY'S MIRACLES THE PRODUCTS OF THE POSTINDUSTRIAL AGE LIKE COMPUTERDRIVEN GAMES AND INFORMATION SERVICES ARE SUSCEPTIBLE TO PIRACY IN WAYS THAT MANUFACTURED PRODUCTS NEVER WERE WHAT IS MORE A BIG PART OF THEIR VALUE RESTS IN THE INVISIBLE INTELLECTUAL CAPITAL THAT WAS SPENT TO CREATE THEM BUT INTELLECTUAL PROPERTY IS EVERY BIT AS MUCH IN NEED OF PROTECTION AS PROPERTY OF OTHER KINDS THE ISSUE IS ONE THAT OUR POLITICAL LEADERS MUST NOT AVOID ADDRESSING AS THEY REACH A VERDICT ON WHETHER THE CHINESE CAN BE TRUSTED TO MEET THEIR OBLIGATIONS AS PARTNERS IN THIS TRADE MR LINCOLN IS CHAIRMAN OF NINTENDO OF AMERICA INC 9403230064 940323 INTERNATIONAL BRIEF HYUNDAI MOTOR CO KOREAN COMPANY TO BEGIN OPERATION AT EXPANDED PLANT SOUTH KOREA'S HYUNDAI MOTOR CO SAID IT WILL START OPERATION OF ITS RECENTLY EXPANDED PRODUCTION LINES ON APRIL 1 WHICH WILL BRING THE COMPANY'S ANNUAL PASSENGERCAR CAPACITY TO ONE MILLION UNITS FROM THE CURRENT 900000 HYUNDAI OFFICIALS SAID THE COMPANY RECENTLY COMPLETED THE EXPANSION OF ITS THIRD PLANT IN ULSAN SOUTH OF SEOUL WHICH WAS PRODUCING ITS COMPACT PASSENGER CAR ELANTRA WITH THE EXPANSION THE COMPANY'S TOTAL VEHICLE CAPACITY INCLUDING TRUCKS AND BUSES WILL BE 126 MILLION UNITS A YEAR THE LATEST EXPANSION IS PART OF THE COMPANY'S LONGTERM PROJECT TO INCREASE ITS ANNUAL AUTO CAPACITY TO TWO MILLION UNITS BY THE END OF THE YEAR 2000 9403230063 940323 INSIDE TRACK INSIDERS AT REGIONAL BANKS ARE LOADING UP ON SHARES BY WARREN GETLER AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK INSIDERS AT A NUMBER OF REGIONAL BANKS HAVE BEEN LOADING UP ON SHARES IN THEIR RESPECTIVE COMPANIES BETTING THAT GOOD TIMES LIE AHEAD DESPITE AN UNCERTAIN INTERESTRATE ENVIRONMENT THESE INSIDERS SEEM TO BELIEVE THAT EARNINGS WILL STAY ON TRACK THAT BALANCE SHEETS HAVE BEEN CLEANED UP AND THAT A TREND TOWARD CONSOLIDATION WILL ADD SOME TAKEOVER SIZZLE TO THE SECTOR STOKING THAT TAKEOVER FEVER IS A BILL MOVING THROUGH CONGRESS THAT WILL ALLOW FULL INTERSTATE BANKING ANALYSTS SAY THAT EVEN IF BIDS FOR THE COMPANIES DON'T MATERIALIZE MANY BANK STOCKS SEEM CHEAP COMPARED WITH PRICE LEVELS FOR MUCH OF 1993 BEFORE INTERESTRATE JITTERS DERAILED A TWOYEAR RALLY YESTERDAY'S FEDERAL RESERVE ANNOUNCEMENT THAT IT WILL RAISE SHORTTERM INTEREST RATES COMBINED WITH A RATE BOOST BY THE FED ON FEB 4 COULD PRESSURE BANK EARNINGS BY SQUEEZING PROFIT MARGINS OR THE SPREAD BETWEEN WHAT BANKS RECEIVE FOR LOANS AND WHAT THEY HAVE TO PAY TO BORROW ANALYSTS SAY YET LONGER TERM CONSOLIDATION SEEMS INEVITABLE FOR MANY SMALLER BANKS THAT RECOGNIZE A SIMPLE FACT THEY AREN'T GOING TO BE EXTREMELY EFFECTIVE COMPETITORS AS INDEPENDENT OPERATORS THERE'S NO WAY THEY CAN ALL ACHIEVE AN ACCEPTABLE LEVEL OF PROFITABILITY SAYS ELIZABETH SUMMERS A BANKING ANALYST AT RYAN BECK & CO IN WEST ORANGE NJ AND AFTER A COUPLE OF YEARS WHEN BANK STOCKS ONLY WENT ONE WAY STRAIGHT UP THE MARKET IS BECOMING MORE DISCRIMINATING MS SUMMERS SAYS THAT FOR MANY SENIOR MANAGERS WHO OWN STOCK NOW IS THE TIME TO TAKE ADVANTAGE OF THE HEATED MARKET FOR ACQUISITIONS AND EXPLORE TAKEOVER POSSIBILITIES SO FAR THIS YEAR THERE HAVE BEEN 39 BILLION OF BANK MERGERS AND ACQUISITIONS ACCORDING TO SNL SECURITIES IN CHARLOTTESVILLE VA THE PACE NOW IS NEARLY A DEAL A DAY ALBEIT NOT ALL ARE HUNDRED MILLION DOLLAR DEALS YESTERDAY PREMIER BANCORP INC OF BATON ROUGE LA SAID IT REACHED AGREEMENTS TO BUY TWO BANKS IN LOUISIANA FOR ABOUT 100 MILLION IN PREMIER STOCK IF YOU'RE GOING TO GET OUT AS AN INDEPENDENT BANK NOW IS THE TIME SAYS MS SUMMERS LITTLE SURPRISE THEN THAT INSIDERS WERE BUYING LATE LAST YEAR AT BALTIMORE BANCORP AND AT CITIZENS FIRST BANCORP OF GLEN ROCK NJ BOTH OF WHICH RECEIVED TAKEOVER BIDS MONDAY BOTH COMPANIES HAD BEEN RUMORED TAKEOVER TARGETS FIRST FIDELITY BANCORP OF LAWRENCEVILLE NJ SAID MONDAY IT WILL PURCHASE BALTIMORE BANCORP FOR 346 MILLION OR 2075 A SHARE FOR THE TARGET COMPANY'S COMMON SHARES ANALYSTS SAID THE PURCHASE PRICE AT 21 TIMES THE TARGET BANK'S BOOK VALUE REFLECTED A HEFTY PREMIUM BALTIMORE BANCORP WAS UNCHANGED YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT 1925 A SHARE BALTIMORE BANCORP EXECUTIVES AND DIRECTORS WHO PURCHASED A COMBINED 61000 SHARES IN AUGUST AND SEPTEMBER AT AN AVERAGE 12 A SHARE HAD SAID FOR YEARS THAT THEY WOULD CONSIDER AN EVENTUAL SALE OF THE COMPANY THE BANK WITH ASSETS OF 22 BILLION HAD BEEN ACTIVELY MARKETING ITSELF FOR SEVERAL MONTHS MOST OF THE PURCHASES LAST FALL WERE THE LARGEST ON RECORD FOR THE NINE BANK OFFICERS AND DIRECTORS WHO MADE THEM NOTABLY INSIDERS AT FIRST FIDELITY WERE ALSO ACTIVE BUYERS OF THEIR COMPANY'S STOCK EIGHT INSIDERS SNAPPED UP 37700 FIRST FIDELITY SHARES AT AN AVERAGE 42 EACH FROM OCT 15 TO NOV 19 SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW AT CITIZENS FIRST COMPANY EXECUTIVES HAD BEEN TELLING ANALYSTS THAT THEY WANTED TO KEEP THE BANK INDEPENDENT BUT RUMORS KEPT SWIRLING ABOUT A TAKEOVER OF THE 26 BILLIONASSET BANKING COMPANY WE WERE GETTING ONE SIGNAL FROM MANAGEMENT AND THE OTHER SIGNAL FROM THE MARKETPLACE SAYS MS SUMMERS THE RYAN ANALYST NATIONAL WESTMINSTER BANK PLC ONE OF BRITAIN'S LARGEST COMMERCIAL BANKS SAID MONDAY IT PLANS TO PAY 500 MILLION TO ACQUIRE THE NEW JERSEY BANK NATWEST SAID IT WILL PAY CITIZENS SHAREHOLDERS 975 A SHARE OR EXCHANGE 022034 NATWEST AMERICAN DEPOSITARY RECEIPT FOR EACH CITIZENS FIRST SHARE LATE LAST SUMMER FOUR EXECUTIVES AT CITIZENS ACQUIRED A COMBINED 88053 SHARES AT AN AVERAGE COST OF 650 A SHARE YESTERDAY CITIZENS SHARES CLOSED AT 875 A SHARE DOWN 25 CENTS ON THE AMERICAN STOCK EXCHANGE MARKET PROS WHO TRACK INSIDER ACTIVITY THINK THE BUYING ACTION WILL CONTINUE TO PERCOLATE ESPECIALLY AMONG SMALL TO MIDSIZE BANKS AND MAY PORTEND A SLEW OF OTHER MERGERS WE LIKE THE BANK INSIDER ACTIVITY THESE DAYS SAYS BOB GABELE PRESIDENT OF CDA/INVESTNET A FORT LAUDERDALE FLA COMPANY THAT ANALYZES INSIDER DATA WE RECOGNIZE THAT THERE WERE A LOT OF WRONG BETS PLACED IN 198990 AS SOME BANKS WHICH HAD HEAVY INSIDER BUYING LIKE THE BANK OF NEW ENGLAND NEVER RECOVERED MR GABELE ADDS WHAT MR GABELE IS LOOKING FOR THESE DAYS AS A POINTER TO A POTENTIALLY HOT BANK STOCK IS A LARGE NUMBER OF INSIDERS BUYING AT A PARTICULAR BANK ESPECIALLY WHEN THEY'RE BUYING MORE STOCK AT HIGHER PRICES IT'S ALSO IMPORTANT TO SEE MIDDLE MANAGERS GETTING INVOLVED NOT JUST THE COMPANY CHAIRMAN AND CEO HE NOTES MR GABELE LIKES THE INSIDER BUYING ACTION AT FIRST AMERICAN CORP TCF FINANCIAL CORP TRUSTMARK CORP MARK TWAIN BANCSHARES CITY NATIONAL CORP AND COLLECTIVE BANCORP A GROUP OF BANKS CONSIDERED BY INDUSTRY ANALYSTS TO BE EVENTUAL TAKEOVER TARGETS ARE ALSO SHOWING UP STRONGLY ON MR GABELE'S SCREEN FOR INSIDER BUYING THEY INCLUDE NORTH FORK BANCORP FIRSTAR CORP SOVEREIGN BANCORP AND BARNETT BANKS INC RECENT SEC FILINGS SHOW FOR EXAMPLE THAT NORTH FORK CHAIRMAN JOHN A KANAS BOUGHT 5400 SHARES AT 13675 EACH IN LATE FEBRUARY THE MOVE FOLLOWS PURCHASES BY FIVE INSIDERS AT THE MINEOLA NY BANK IN NOVEMBER AND DECEMBER THE GROUP PAID 1150 A SHARE ON AVERAGE FOR THEIR STOCK PURCHASES IN THE OPEN MARKET IN JANUARY TWO OTHER INSIDERS PICKED UP SHARES AT PRICES AS HIGH AS 12875 A PIECE NORTH FORK IS A RECOVERY STORY SAYS MR KANAS NOTING THAT THE STOCK HAS RECOVERED FROM A LOW OF ABOUT 360 A SHARE IN SEPTEMBER 1991 THE FUNDAMENTALS OF THE COMPANY HAVE BEEN IMPROVING SINCE EARLY 1992 HE ADDS YESTERDAY NORTH FORK SAID ITS BOARD VOTED TO REINSTATE THE BANK'S CASH DIVIDEND OF 75 CENTS A SHARE FOR THE FIRST QUARTER THE COMPANY LAST PAID A DIVIDEND AT THE END OF 1991 AND AT FIRSTAR INSIDERS ARE MAKING SOME LARGE DOLLARVOLUME PURCHASES DIRECTOR WILLIAM WIRTZ FOR INSTANCE SNAPPED UP 111000 SHARES BETWEEN DECEMBER AND JANUARY FOR AROUND 34 MILLION SEC DATA INDICATE AMONG STRONG SUPERREGIONAL BANKS WHICH ARE LIKELY TO BE ON THE BUYING SIDE OF FUTURE TAKEOVER DEALS INSIDERS HAVE ALSO BEEN ACTIVE BUYERS INSIDERS HAVE BEEN STEPPING UP TO THE PLATE AT BANC ONE CORP AND KEYCORP SEC FILINGS SHOW THOSE PURCHASES ANALYSTS SAY ARE MORE LIKELY TO REFLECT INSIDER BULLISHNESS ABOUT FUNDAMENTALS AND A SENSE THAT THE STOCK IS SIMPLY CHEAP WITH INTERSTATE BANKING GETTING MORE LEGISLATIVE SUPPORT THAN IN THE PAST INSIDERS MAY ALSO BE LOOKING FOR NEW OPPORTUNITIES TO INCREASE MARKET SHARE THROUGH ACQUISITIONS ANALYSTS ADD BY IMPROVING EFFICIENCIES AT SOME OF THE SMALLER LESSWELLMANAGED BANKS THEY SEEK TO ACQUIRE SOME OF THESE SUPERREGIONALS CAN ACHIEVE IMPORTANT COSTSAVINGS WHILE AVOIDING THE PROBLEMS OF BEING TOO HIGHLY CONCENTRATED IN A GIVEN MARKET THEY ADD 9403230060 940323 LEISURE & ARTS A CULTURAL MACHINE IN CRISIS BY ANNE MIDGETTE FRANKFURT LAST MONTH FRANKFURT KICKED OFF ITS 1200YEAR ANNIVERSARY CELEBRATIONS WITH A THICK GLOSSY CATALOG CONTAINING THE SCHEDULE FOR A YEAR OF SPECIAL CULTURAL EVENTS RANGING FROM EXHIBITS IN THE CITY'S 13 NEW OR NEWLY RENOVATED MUSEUMS TO OPERAS AND FILM SCREENINGS THE CATALOG PUTS UP A GOOD FRONT IN FACT THE OPERA HOUSE IS STAGING FEWER AND FEWER PERFORMANCES EACH MONTH THERE'S NO GUARANTEE THAT THE MUNICIPAL CINEMA WILL STILL BE OPERATING COME SUMMER AND THE TOURIST OFFICES ARE HANDING OUT MUSEUM BROCHURES FULL OF INFORMATION ABOUT SHOWS FROM 1992 BECAUSE THEY CAN'T AFFORD TO PRINT NEW ONES YOU SEE FRANKFURT HAS NO MONEY THE CITY THAT ONCE SYMBOLIZED GERMANY'S ECONOMIC STRENGTH NOW REPRESENTS ITS RECESSION FRANKFURT HAS THE HIGHEST MUNICIPAL DEBT OF ANY GERMAN CITY 8 BILLION MARKS 476 BILLION THIS REFLECTS INFLATED SPENDING IN EVERY AREA NOT ONLY CULTURE AND EVERY AREA IS AFFECTED BY THE STRUGGLE TO CUT COSTS STREET LIGHTS ARE BEING DIMMED AFTER 8 PM FOR EXAMPLE BUT CULTURE IS BEING HIT PARTICULARLY HARD LOSING 47 MILLION MARKS OF ITS PUBLIC SUBSIDY IN 1994 THIS IS BECAUSE FRANKFURT'S CULTURAL BUDGET IS THE HIGHEST OF ANY GERMAN CITY ALTHOUGH FRANKFURT ITSELF WITH A POPULATION OF 650000 IS ONLY THE FIFTHLARGEST CITY IN GERMANY THE BUDGET IS HIGH BECAUSE FRANKFURT IS TRYING TO MAINTAIN AN INTERNATIONAL ARTS SCENE ON A MUNICIPAL BUDGET MOST OTHER LARGE GERMAN CITIES RECEIVE GENEROUS FUNDING FROM THEIR STATES FRANKFURT IS NOT THE CAPITAL OF THE STATE OF HESSIA SO ITS INSTITUTIONS DON'T RECEIVE THE KIND OF MONEY THAT MUNICH'S BAVARIAN STATE OPERA BAVARIAN STATE BALLET OR VARIOUS STATE GALLERIES GET FROM BAVARIA WITH A POPULATION TWICE AS LARGE AS FRANKFURT'S MUNICH PAYS ONLY 12 MILLION MARKS OF ITS BAVARIAN STATE OPERA'S 123 MILLIONMARK BUDGET FRANKFURT PAYS 65 MILLION MARKS OF ITS OPERA'S 69 MILLIONMARK BUDGET FRANKFURT IS AN EXTREME CASE SAYS CHRISTIANE VON WAHLERT OF THE CITY'S CULTURAL OFFICE FEW CITIES OPERATE SUCH AN EXPENSIVE INSTITUTION AS AN OPERA HOUSE MUNICIPALLY WHETHER FRANKFURT CAN GO ON OPERATING ONE IS THE QUESTION RATHER THAN SACRIFICING ONE INSTITUTION FOR THE COMMON GOOD CULTURAL OFFICER LINDA REISCH HAS OPTED FOR CUTS ACROSS THE BOARD WHILE THE FIXED OPERATING COSTS OF MUSEUMS AND THEATERS WILL STILL BE COVERED RENT UTILITIES AND PERSONNEL THEIR FLEXIBLE ARTISTIC COSTS WILL NOT BE GUARANTEED ONE PRACTICAL CONSEQUENCE IS THAT MUSEUMS HERE ARE BEING FORCED FOR THE FIRST TIME TO CHARGE ADMISSION FEES LIKE MOST OTHER MUSEUMS IN THE WORLD A DEVELOPMENT GREETED WITH MUCH PROTEST FROM PRESS AND PUBLIC GRANTED THE CITY'S INSTITUTIONS HAVE BEEN SPOILED BY LAVISH ARTS SPENDING FOR A LONG TIME BUT THE PROJECTED ACROSSTHEBOARD CUTS DON'T ALWAYS TAKE THE ACHIEVEMENT OF INDIVIDUAL INSTITUTIONS INTO ACCOUNT WILLIAM FORSYTHE'S WORLDRENOWNED FRANKFURT BALLET FOR EXAMPLE IS SUPPOSED TO LOSE 17 MILLION MARKS OF FUNDING ALTHOUGH IT SETS INTERNATIONAL STANDARDS OF EXCELLENCE AND EARNS THE CITY ABOUT 16 MILLION MARKS A YEAR WITH ITS REGULAR APPEARANCES IN PARIS THERE ALSO HAVE BEEN RUMORS THAT THE EXPERIMENTAL THEATER AM TURM TAT WILL CLOSE A COMMISSION IS LOOKING INTO COMBINING ITS TECHNICAL AND ADMINISTRATIVE STAFF WITH THAT OF THE FRANKFURT PLAYHOUSE SCHAUSPIEL AND ITS BUDGET IS BEING SLASHED 25 THIS IS IN SPITE OF THE FACT THAT TAT IS ONE OF FRANKFURT'S MOST RESPECTED VENUES COOPERATING WITH OTHER THEATERS THROUGHOUT EUROPE AND REGULARLY PRESENTING ARTISTS OF THE CALIBER OF PETER BROOK OR ROBERT WILSON BY CONTRAST THE FALL OFFERINGS OF THE PLAYHOUSE WHICH RECEIVES ABOUT 35 MILLION MARKS FROM THE CITY TAT BEFORE CUTS GOT 87 MILLION MARKS WERE LESS THAN EARTHSHATTERING TOO LITTLE ENERGY TOO CONCILIATORY TOO MUCH TALKING TOO LITTLE THOUGHT IS HOW THE CRITIC VERENA AUFFERMANN SUMMARIZED THE BEGINNING OF THE CURRENT SEASON FRANKFURT'S CULTURAL CRISIS HAS GOTTEN PLENTY OF ATTENTION ALL OVER GERMANY AS RECESSION AND REUNIFICATION EAT INTO GOVERNMENT SPENDING THE CITY IS MERELY THE MOST EXTREME EXAMPLE OF A NATIONWIDE PHENOMENON EVERY CITY FELT THE PINCH WHEN IN OCTOBER THE FEDERAL GOVERNMENT ANNOUNCED THAT IT WAS CUTTING BACK ON UNEMPLOYMENT SPENDING BY A TOTAL OF 4 BILLION MARKS A SUM THAT THE CITIES ARE OBLIGED UNDER THE GERMAN CONSTITUTION TO COVER CITIES IN NEED BECAME THE SLOGAN OF GERMAN MUNICIPAL LEADERS THE ARTS WILL BE ONE OF THE FIRST AREAS TO SUFFER IN ALL THE NATIONAL DEBATE ABOUT THE FUTURE OF THE ARTS THERE'S MUCH CRITICISM OF POLITICIANS SUCH AS CULTURAL OFFICER REISCH WHO ARE RESPONSIBLE FOR MAKING THE CUTS FRANKFURT CITIZENS ARE LOUDLY CALLING FOR HER RESIGNATION BUT SURPRISINGLY LITTLE ATTENTION IS BEING PAID TO ALTERNATIVE SOURCES OF CULTURAL FUNDING SUCH AS PRIVATE SPONSORSHIP IT'S AN ARTICLE OF FAITH IN GERMANY THAT THE TRADITIONAL MODEL OF GOVERNMENT ARTS PATRONAGE MUST ENDURE ONE GERMAN STATE HAS EVEN PASSED A BILL TO CONTINUE SUBSIDIZED CULTURE IN DECEMBER SAXONY'S LANDTAG THE STATE PARLIAMENT MADE SUPPORTING CULTURE AS MUCH OF A MUNICIPAL DUTY AS PAYING UNEMPLOYMENT BENEFITS BUT SAXONY IN FORMER EAST GERMANY IS STILL SHIELDED FROM THE FINANCIAL CRUNCH HALF OF ITS 1994 BUDGET COMES FROM THE WEST UNDER PROGRAMS DESIGNED TO AID GERMAN REUNIFICATION FRANKFURT WHETHER ITS 1200YEAROLD ARTS SCENE CRUMBLES OR PREVAILS IS A MORE LIKELY MODEL FOR THE FUTURE OF GERMANY'S MAMMOTH CULTURAL MACHINE IN THE FACE OF DWINDLING GOVERNMENT SUPPORT MS MIDGETTE IS A WRITER IN MUNICH 9403230059 940323 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED EQUAL TO 90 OR MORE OF SHARES SOLD SHOLDS OTHER CLASS OF STOCK XREFLECTS SHARES HELD INDIRECTLY LATE FILING BASE PERIOD IS LESS THAN 3 YEARS OOFFICER ZOTHER BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES UNEXERCISED OPTIONS COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 9403230058 940323 BUSINESS BRIEF CAPUCINO'S INC RESTAURANT OWNER TO BUY CAPITAL STOCK OF BRA INC CAPUCINO'S INC SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE ALL THE CAPITAL STOCK OF BOSTON RESTAURANT ASSOCIATES INC IN A STOCK TRANSACTION PREVIOUSLY VALUED AT ABOUT 6 MILLION CAPUCINO'S WILL ACQUIRE ALL OF THE OUTSTANDING CAPITAL STOCK OF BRA IN EXCHANGE FOR 13825875 SHARES OF CAPUCINO'S COMMON STOCK GIVING BRA SHAREHOLDERS A 60 INTEREST IN THE COMPANY WHICH WILL KEEP THE CAPUCINO'S NAME AND BE BASED IN BOSTON BRA'S PRESIDENT AND PRINCIPAL STOCKHOLDER GEORGE CHAPDELAINE 48 YEARS OLD WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OF THE NEW CAPUCINO'S CAPUCINO'S OWNS FOUR ITALIAN RESTAURANTS IN THE BOSTON AREA IT HAD A LOSS OF 15 MILLION IN THE FISCAL YEAR ENDED APRIL 30 1993 INCLUDING AN 815996 CHARGE FOR WRITEDOWN OF ASSETS BRA IS A PRIVATELY HELD OPERATOR OF SIX PIZZA RESTAURANTS AND TWO ITALIAN RESTAURANTS IN BOSTON 9403230057 940323 BUSINESS BRIEF LECHTERS INC FOURTHQUARTER PROFIT FELL DESPITE AN INCREASE IN SALES LECHTERS INC A HOUSEWARES RETAILER SAID ITS NET INCOME FELL 23 IN THE FISCAL FOURTH QUARTER ENDED JAN 29 DESPITE A 77 SALES INCREASE THE HARRISON NJ COMPANY REPORTED NET INCOME OF 89 MILLION OR 52 CENTS A SHARE DOWN FROM 115 MILLION OR 67 CENTS A SHARE A YEAR EARLIER SALES ROSE TO 1337 MILLION FROM 1241 MILLION AS THE COMPANY OPERATED MORE STORES LECHTERS SAID 567 STORES WERE IN OPERATION AT JAN 30 UP FROM 513 A YEAR EARLIER COMPARABLESTORE SALES FELL SLIGHTLY IN THE FOURTH QUARTER THE COMPANY SAID FOR THE YEAR NET WAS 111 MILLION OR 65 CENTS A SHARE DOWN FROM 154 MILLION OR 90 CENTS A SHARE SALES ROSE 14 TO 3502 MILLION FROM 306 MILLION PHILIP J REILLY VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE BIGGEST FACTOR BEHIND DISAPPOINTING VOLUME HAS BEEN THE TENDENCY FOR SALES AT SOCALLED OUTLET STORES TO FALL OFF AFTER SUCCESSFUL FIRSTYEAR PERFORMANCES THE COMPANY HAS 107 OUTLET STORES MOSTLY OPENED AFTER 1990 9403230055 940323 BUSINESS BRIEF BRITISH PETROLEUM PLC ACCORD WITH JAPANESE FIRMS SETS CHINA SEISMIC SURVEYS BRITISH PETROLEUM PLC SAID IT AND FOUR JAPANESE COMPANIES SIGNED AN AGREEMENT WITH CHINA NATIONAL PETROLEUM CORP TO CONDUCT GEOPHYSICAL SURVEYS IN THE TARIM BASIN THE TARIM BASIN LIES IN A REMOTE NORTHWESTERN PART OF CHINA THE AREA IS SAID TO HOLD AS MUCH AS 70 BILLION BARRELS OF OIL IF THAT FIGURE IS CORRECT THE BASIN WOULD TRIPLE CHINA'S RESERVES BP SAID ITS BP EXPLORATION OPERATING CO UNIT AND FOUR OTHER PARTNERS WOULD NOW HAVE THREE YEARS TO CONDUCT SEISMIC SURVEYS IN BLOCK 4 OF THE BASIN WITH AN OPTION TO CONDUCT EXPLORATION DRILLING SUBSEQUENTLY THE BRITISH COMPANY HOLDS A 55 INTEREST IN THE TARIM GROUP NIPPON OIL EXPLORATION CO HAS A 15 INTEREST THREE OTHER COMPANIES ITOCHU OIL EXPLORATION CO MITSUBISHI CORP AND MITSUI & CO EACH HAVE A 10 STAKE 9403230054 940323 MARKETING BRIEF NOTED MONSTER MOVIE THE HOMEVIDEO DIVISION OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA/UNIVERSAL UNIT SAID IT PLANS A WORLDWIDE VIDEOCASSETTE RELEASE OF JURASSIC PARK ON OCT 4 AT A SUGGESTED RETAIL PRICE OF 2498 IN THE US 9403230053 940323 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 5/8 HIGH 3 5/16 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 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 362 30 TO 43 DAYS 365 44 TO 59 DAYS 375 60 TO 74 DAYS 380 75 TO 89 DAYS 385 90 TO 119 DAYS 395 120 TO 149 DAYS 4 150 TO 179 DAYS 405 180 TO 239 DAYS 420 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 370 30 DAYS 380 60 DAYS 392 90 DAYS CERTIFICATES OF DEPOSIT 298 ONE MONTH 307 TWO MONTHS 323 THREE MONTHS 344 SIX MONTHS 381 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 363 ONE MONTH 385 THREE MONTHS 410 SIX MONTHS BANKERS ACCEPTANCES 358 30 DAYS 368 60 DAYS 380 90 DAYS 390 120 DAYS 4 150 DAYS 405 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/4 3 5/8 ONE MONTH 3 7/8 3 3/4 TWO MONTHS 4 3 7/8 THREE MONTHS 4 1/8 4 FOUR MONTHS 4 3/16 4 1/16 FIVE MONTHS 4 1/4 4 1/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 11/16 ONE MONTH 4 THREE MONTHS 4 1/4 SIX MONTHS 4 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 581 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 777 60 DAYS 783 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 767 60 DAYS 774 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 580 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 281 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403230051 940323 BUSINESS BRIEF MESA AIRLINES CARRIER REFUSES TO SWEETEN 32 MILLION OFFER FOR CCAIR MESA AIRLINES REFUSED TO SWEETEN ITS 32 MILLION BID FOR CCAIR DESPITE A SUGGESTION BY CCAIR'S DIRECTORS THAT MESA RAISE THE ACQUISITION PRICE TO ABOUT 374 MILLION MESA AIRLINES A REGIONAL CARRIER BASED IN FARMINGTON NM HAD ORIGINALLY OFFERED TO ACQUIRE CCAIR BY EXCHANGING ABOUT 15 MILLION MESA SHARES FOR THE APPROXIMATELY SEVEN MILLION CCAIR SHARES OUTSTANDING VALUING THOSE SHARES AT ABOUT 450 A SHARE CHARLOTTE NCBASED CCAIR A COMMUTER CARRIER THAT PROVIDES USAIR EXPRESS SERVICE REJECTED THAT OFFER AND SUBMITTED A COUNTERPROPOSAL VALUED AT ABOUT 374 MILLION MESA SAID THAT ITS CHAIRMAN INFORMED CCAIR'S PRESIDENT IN WRITING THAT MESA REJECTED CCAIR'S COUNTERPROPOSAL AND WAS RENEWING THE ORIGINAL OFFER UNTIL FRIDAY ON THE NASDAQ STOCK MARKET YESTERDAY MESA CLOSED AT 22 UNCHANGED IN OVERTHECOUNTER TRADING CCAIR CLOSED AT 425 DOWN 75 CENTS OR 15 9403230050 940323 BUSINESS BRIEF TOPPS CO FISCAL FOURTHQUARTER PROFIT POSTED AFTER YEARAGO LOSS COMING OUT OF A PROLONGED SLUMP IN DEMAND FOR ITS TRADING CARDS TOPPS CO REPORTED A FISCAL FOURTHQUARTER PROFIT COMPARED WITH A YEARAGO LOSS FOR THE QUARTER ENDED FEB 26 TOPPS A MARKETER OF COLLECTIBLE CARDS POSTED NET INCOME OF 46 MILLION OR 10 CENTS A SHARE COMPARED WITH A NET LOSS OF 214 MILLION OR 45 CENTS A SHARE FOR THE 1993 PERIOD TOPPS'S REVENUE JUMPED 59 FOR THE QUARTER TO 641 MILLION FROM 404 MILLION THE COMPANY SAID IMPROVEMENTS IN THE SALES OF ITS SPORTSRELATED CARDS HELPED RESULTS IN THE LAST COUPLE OF YEARS THE COMPANY SAID THE TRADINGCARD MARKET HAD BEEN SATURATED SQUEEZING PROFITS IN NASDAQ STOCK MARKET TRADING THE STOCK ROSE 25 CENTS TO 7125 FOR THE YEAR THE COMPANY POSTED NET INCOME OF 266 MILLION OR 57 CENTS A SHARE A 40 INCREASE FROM 19 MILLION OR 40 CENTS A SHARE LAST YEAR 9403230048 940323 BUSINESS BRIEF HOECHST AG PARENTCOMPANY OPERATIONS SHOWED A LOSS DURING 1993 GERMAN CHEMICAL GROUP HOECHST AG SAID ITS PARENTCOMPANY OPERATIONS SWUNG TO A 1993 OPERATING LOSS OF 217 MILLION MARKS 128 MILLION FROM A 1992 OPERATING PROFIT OF 234 MILLION MARKS HOECHST'S FULLGROUP OPERATING PROFIT INCLUDING ALL ITS SUBSIDIARIES SLUMPED 31 TO 148 BILLION MARKS IN 1993 FROM 215 BILLION MARKS IN 1992 THE COMPANY SAID OPERATING RESULTS FELL PARTLY BECAUSE OF RISING RESTRUCTURING AND LAYOFF EXPENSES WHICH ROSE TO 999 MILLION MARKS IN 1993 FROM 771 MILLION MARKS A YEAR EARLIER 9403230047 940323 TEXAS JOURNAL LETTER TO THE EDITOR WRITE ABOUT US PLEASE ACCEPT MY SINCERE CONGRATULATIONS FOR TEXAS JOURNAL I AM A LONGTIME SUBSCRIBER TO THE WALL STREET JOURNAL AND AM VERY HAPPY TO SEE THIS RECOGNITION OF THE FACT THAT TEXAS RATES THIS SPECIAL COVERAGE NOW IF ONLY YOU WOULD SQUEEZE IN A BIT MORE DATA ON SAN ANTONIO AFTER ALL WE'RE THE 10TH LARGEST CITY IN THE LAND WE DO ADMIT THAT DALLAS AND HOUSTON ARE LARGER THAN WE ARE BUT WE ARE THE BIGGEST CITY OF ANY WITHIN A 200MILE RADIUS AND HAVE MUCH TO CONTRIBUTE TO THE TEXAS ECONOMY 9403230046 940323 BUSINESS BRIEF SOUTHWESTERN PROPERTY TRUST COMPANY MOVES TO EXPAND ITS BUSINESS INTO SOUTHEAST SOUTHWESTERN PROPERTY TRUST A REALESTATE INVESTMENT TRUST BASED IN DALLAS THAT INVESTS IN APARTMENT PROPERTIES SAID IT IS BROADENING ITS GEOGRAPHICAL FOCUS AND CHANGING ITS NAME TO SOUTH WEST PROPERTY TRUST THE COMPANY SAID IT OPENED REGIONAL OFFICES IN CHARLOTTE NC AND LITTLE ROCK ARK IN A MOVE TO EXPAND INTO THE SOUTHEAST THE COMPANY IS DIVERSIFYING ITS OPERATIONS INTO THE SOUTHEAST BECAUSE THAT AREA CONTINUES TO BENEFIT FROM ABOVEAVERAGE JOB GROWTH IN A SIMILAR MANNER TO THE SOUTHWEST JOHN SCHNEIDER CHIEF EXECUTIVE OFFICER SAID THE COMPANY EXPECTS TO COMPLETE ITS FIRST TWO ACQUISITIONS IN ARKANSAS NEXT MONTH THEY ARE APARTMENT PROPERTIES IN LITTLE ROCK WITH A TOTAL OF 512 UNITS 9403230045 940323 BUSINESS BRIEF TYSON FOODS INC PINE BLUFF ARK IS CHOSEN FOR PART OF EXPANSION PLAN TYSON FOODS INC CHOSE PINE BLUFF ARK AS ONE OF FOUR SITES FOR A BIG EXPANSION OF THE COMPANY'S POULTRY PRODUCTION CAPACITY TYSON THE NATION'S LARGEST POULTRY COMPANY SAID IT PICKED PINE BLUFF BECAUSE THE COMPANY ALREADY HAS A PLANT THERE THAT DOES ADDITIONAL PROCESSING ON CHICKENS THAT HAVE BEEN SLAUGHTERED THE COMPANY SAID THE 30 MILLION TO 40 MILLION EXPANSION IN PINE BLUFF INCLUDING A SLAUGHTER FACILITY AND NEW CHICKENGROWING HOUSES WILL ALLOW TYSON TO KILL AN ADDITIONAL 13 MILLION BIRDS A WEEK THE DEAD BIRDS AND CHICKEN PARTS THAT ARE NOW SENT TO PINE BLUFF WILL BE PROCESSED AT OTHER TYSON FACILITIES A SPOKESMAN SAID TYSON SAID THE EXPANSION IN PINE BLUFF IN SOUTHEASTERN ARKANSAS WILL CREATE 300 TO 400 JOBS THE COMPANY SAID THE AREA DOESN'T HAVE THE TYPE OF LABOR SHORTAGE THAT RULED OUT NORTHWESTERN ARKANSAS TYSON'S BASE AS AN EXPANSION SITE TYSON HAS ITS HEADQUARTERS IN SPRINGDALE ARK 9403230043 940323 LETTERS TO THE EDITOR JESUIT EDITOR'S FOCUS WAS ALWAYS OBJECTIVE I MUST NOT LET PASS THE POSSIBLE MISREPRESENTATION OF THE LATE FATHER LASZLO LADANY'S UNIQUE CONTRIBUTION TO CHINA SCHOLARSHIP IN THE NEWSLETTER HE FOUNDED CHINA NEWS ANALYSIS AFTER YEARS OF TRACKING CHINA'S CHANGE JESUIT SCHOLARS PLAN TO LEAVE HONG KONG FEB 10 THE IMPRESSION PROVIDED BY FATHER MICHEL MASSON ONE OF THE CURRENT EDITORS OF THE NEWSLETTER IS THAT BECAUSE OF AN ANTICOMMUNIST TWIST FATHER LADANY WAS LESS THAN OBJECTIVE AND LESS FOCUSED ON ECONOMIC CHANGE THIS IS AN UNWORTHY INSINUATION AND UNTRUE THE PROOF IS IN THE 30YEAR RECORD OF HIS NEWSLETTER IN THE RECENT PAST MANY SINOLOGISTS WORLDWIDE WHOSE WRITINGS WERE SLANTED SYMPATHETICALLY IF NOT SYCOPHANTICALLY TOWARD MAOISM A COMMON PHENOMENON BEFORE 1978 COULD NOT IGNORE THIS CONVENIENT SOURCE OF HARDHEADED SCRUPULOUSLY ACCURATE INFORMATION ON THE CHINESE COMMUNIST SYSTEM PARTICULARLY THE ECONOMY CONSIDER ON THE OTHER HAND THIS IRONIC TWIST THE CURRENT EDITORS OF CHINA NEWS ANALYSIS PLAN TO MOVE THEIR OFFICE TO TAIWAN A COUNTRY WHOSE INVITATIONS TO PARTICIPATE IN SCHOLARLY CONFERENCES FATHER LADANY CONSISTENTLY REFUSED FOR MANY YEARS BECAUSE HIS NEWSLETTER WAS BANNED THERE 9403230042 940323 BUSINESS BRIEF GREYHOUND LINES INC BOARD ADOPTS RIGHTS PLAN TO PROTECT SHAREHOLDERS GREYHOUND LINES INC DALLAS SAID ITS BOARD ADOPTED A RIGHTS PLAN TO PROTECT SHAREHOLDERS IN LIGHT OF RECENT DECLINES IN THE COMPANY'S STOCK PRICE THE MOVE CAME AFTER A CANADIAN INVESTMENT CONCERN TRIPLED ITS GREYHOUND STAKE AMID FALLING RIDERSHIP THE STOCK HAS BEEN STRUGGLING CLOSING AT 11375 YESTERDAY ON THE AMERICAN STOCK EXCHANGE UP FROM 10875 THE BUS COMPANY'S STOCK WAS TRADING AS HIGH AS 2275 LAST MAY THE COMPANY SAID THAT CONNOR CLARK & CO A TORONTOBASED INVESTMENTMANAGEMENT CONCERN HAD ACQUIRED ABOUT 182 OF GREYHOUND'S 147 MILLION COMMON SHARES OUTSTANDING UP FROM A 6 STAKE AS OF DEC 31 IT'S JUST FOR INVESTMENT PURPOSES PURELY A CONNOR CLARK SPOKESMAN SAID GREYHOUND SAID IT WOULD DISTRIBUTE ONE RIGHT FOR EACH COMMON SHARE OUTSTANDING AT THE CLOSE OF BUSINESS ON APRIL 4 IF ANY PARTY ACQUIRES AT LEAST 15 OF THE COMPANY'S STOCK OR ANNOUNCES AN OFFER TO ACQUIRE 30 OR MORE THE RIGHTS ENTITLE OTHER SHAREHOLDERS TO ACQUIRE ADDITIONAL SHARES IN GREYHOUND OR THE ACQUIRING ENTITY AT A 50 DISCOUNT FROM THE MARKET 9403230041 940323 MARKETING & MEDIA ADVERTISING BURGER KING CHOOSES AMMIRATI AFTER TORTUROUS ACCOUNT REVIEW BY LAURA BIRD BURGER KING ENDED ONE OF THE MOST TORTUROUS ADVERTISINGACCOUNT REVIEWS IN RECENT MEMORY BY AWARDING THE CREATIVE PORTION OF ITS ESTIMATED 150 MILLION TO 160 MILLION ACCOUNT TO THE AMMIRATI & PURIS AGENCY IN NEW YORK IN TAPPING AMMIRATI BURGER KING BECOMES ONE OF THE LARGEST ADVERTISERS YET TO SELECT A MIDSIZE CREATIVELY FOCUSED AGENCY OVER LARGER COMPETITORS YET AFTER HAVING UNCEREMONIOUSLY STRIPPED ITS PREVIOUS AGENCY THE GIANT D'ARCY MASIUS BENTON & BOWLES OF CREATIVE RESPONSIBILITIES LAST FALL BURGER KING MADE THE UNUSUAL DECISION OF KEEPING ITS LOCAL MARKETING AND MEDIABUYING PARTS OF ITS ACCOUNT AT D'ARCY UNAFFECTED IN THE SHIFT IS BURGER KING'S ADVERTISING TO CHILDREN WHICH REMAINS AT SAATCHI & SAATCHI ADVERTISING MADISON AVENUE WILL WATCH THIS NEW MARRIAGE CLOSELY BECAUSE BOTH THE CLIENT AND THE AGENCY HAVE HAD PRICKLY RELATIONSHIPS WITH THEIR PARTNERS IN THE PAST AMMIRATI HAS BEEN KNOWN TO DROP CLIENTS INCLUDING BMW AND PRIDES ITSELF ON ITS SMALL ROSTER OF BIGSPENDING BLUECHIP CLIENTS BURGER KING HAS HAD FIVE MAIN AGENCIES SINCE THE MID1970S NOT INCLUDING AMMIRATI THE HIGH TURNOVER RATE IS PARTLY THE RESULT OF SEVERAL UNSUCCESSFUL CAMPAIGNS INCLUDING THE WHERE'S HERB PROMOTION WHICH IS CONSIDERED ONE OF THE BIGGEST FAILURES IN ADVERTISING HISTORY TOO OFTEN IN THE PAST WE BOUGHT A GREAT COMMERCIAL OR A GREAT IDEA THAT DIDN'T HAVE AN EXTENDED LIFE SAID PAUL CLAYTON BURGER KING VICE PRESIDENT OF MARKETING AND PART OF A NEW MANAGEMENT TEAM INSTALLED AT THE GRAND METROPOLITAN UNIT UNDER ITS NEW CHAIRMAN JAMES B ADAMSON MR CLAYTON SAID THE CLIENT LISTENED TO THE CONTENDERS' IDEAS ABOUT STRATEGY AS MUCH IF NOT MORE CLOSELY THAN IT DID TO THEIR CREATIVE IDEAS WE KNEW FROM LOOKING AT THEIR CLIENT LISTS THAT THEY COULD ALL DO GREAT WORK WITH AMMIRATI THERE WAS A LITTLE EXTRA CHEMISTRY IN LANDING THE ACCOUNT AMMIRATI BESTED AT LEAST A DOZEN COMPETITORS CONTENDERS IN THE FINAL ROUND OF THE CREATIVE PITCH INCLUDED INTERPUBLIC GROUP'S LOWE & PARTNERS/SMS WHOSE MOST RECENT WINS HAVE INCLUDED THE BIG DIET COKE ACCOUNT AND EURO RSCG'S MESSNER VETERE BERGER MCNAMEE SCHMETTERER WHICH CREATES ADS FOR MCI AND VOLVO IN ADDITION TO D'ARCY THE CONTENDERS FOR THE MEDIA PORTION WERE WPP GROUP'S OGILVY & MATHER AND THE MEDIABUYING SERVICE DEWITT MEDIA THE CREATIVE CONTENDERS PUT TOGETHER DOZENS OF DIFFERENT SPECULATIVE ADS FOR WHICH THEY WERE COMPENSATED 75000 EACH ACCORDING TO PARTICIPANTS IN THE PITCH MARTIN PURIS AMMIRATI & PURIS'S URBANE CHIEF EXECUTIVE OFFICER SAID LATE YESTERDAY THAT HE WAS DELIGHTED TO HAVE THE ACCOUNT AND FELT READY TO SINK HIS TEETH INTO IT AND A WHOPPER DINNER I'M GOING TO EAT A WHOPPER EVERY TUESDAY NIGHT HE SAID FOR AMMIRATI'S CREATIVE DIRECTOR HELAYNE SPIVAK THE WIN IS A VINDICATION MARKING HER FIRST MAJOR NEW BUSINESS WIN SINCE ABRUPTLY VACATING A HIGHPROFILE JOB AT YOUNG & RUBICAM LAST FALL AND FOR AMMIRATI THE WIN IS A HEFTY WINDFALL INCREASING THE AGENCY'S BILLINGS TO AS MUCH AS 580 MILLION FROM ABOUT 420 MILLION ITS CLIENT ROSTER INCLUDES MASTERCARD INTERNATIONAL AETNA LIFE & CASUALTY AND THE UPS DELIVERY SERVICE NOW IT IS FACED WITH A DAUNTING MISSION TO CREATE AN AD CAMPAIGN WITH WHICH BURGER KING CAN BEGIN A SORELY NEEDED TURNAROUND IN SALES AND IMAGE AGENCY EXECUTIVES SOMETIMES OBSERVE THAT IT IS EASIER TO CREATE GOOD ADVERTISING FOR NO 2 BRANDS POINTING TO PEPSICOLA AND THE LONGDISTANCE SERVICE MCI AS PRIME EXAMPLES OF NO 2 BRANDS THAT MAKE INROADS THROUGH THE SHEER FORCE OF ADVERTISING THAT HOWEVER HASN'T BEEN THE CASE FOR BURGER KING IN QUITE SOME TIME BURGER KING'S AD CAMPAIGNS HAVE RANGED FROM THE HEARTTUGGING BURGER KING TOWN CREATED BY WPP'S J WALTER THOMPSON TO THE EMBARRASSING HERB THE NERD FIASCO ALSO FROM THOMPSON OTHER EFFORTS WERE PRACTICALLY INCOMPREHENSIBLE SUCH AS AYER'S WE DO IT LIKE YOU'D DO IT OR JUST PLAIN ANNOYING SUCH AS THE BK TEEVEE CAMPAIGN THE LAST EFFORT FROM D'ARCY BEFORE LOSING THE CAMPAIGN IN OCTOBER BURGER KING HAS SINCE EXPRESSED INTEREST IN RESURRECTING THE HAVE IT YOUR WAY CAMPAIGN OF THE MID1970S CREATED BY THE BBDO AGENCY WHATEVER THE CREATIVE APPROACH MR CLAYTON SAID THAT ALL THREE FINALIST AGENCIES HAD AGREED ON ONE THING THE NEED TO BROADEN THE CHAIN'S APPEAL BEYOND ITS TRADITIONAL CONSUMER TARGET MALES AGE 18 TO 24 DOMESTIC SALES AT BURGER KING WERE UP A SCANT 3 TO 546 BILLION IN 1993 ACCORDING TO ESTIMATES FROM TECHNOMIC INC A RESTAURANTMARKETING CONSULTANCY IN CHICAGO MCDONALD'S MEANWHILE SAW SALES RISE 7 TO 1419 BILLION TECHNOMIC SAYS WHILE SALES AT WENDY'S INTERNATIONAL THE NO 3 CHAIN WERE UP 63 TO 366 BILLION IN 1992 THE MOST RECENT YEAR IN WHICH DOMESTIC MARKETSHARE FIGURES ARE AVAILABLE BURGER KING'S SHARE SLIPPED TO 162 FROM 166 OF THE 328 BILLION HAMBURGER BUSINESS WHILE MCDONALD'S AND WENDY'S SAW THEIR SHARES INCREASE RON PAUL TECHNOMIC PRESIDENT SAID BURGER KING'S FICKLE NATURE IS PARTLY TO BLAME THE LACK OF FOCUSED AND SUCCESSFUL MARKETING HAS CONTRIBUTED TO THEIR PROBLEMS HE SAID ON THE OTHER HAND WENDY'S SUCCESS IS PARTLY ATTRIBUTABLE TO ITS ADVERTISING STARRING FOUNDER DAVE THOMAS IT'S BEEN A HUGE BOOST TO FRANCHISEE MORALE AND GIVEN THEM AN IMAGE MR PAUL SAID OSCAR RATINGS THE 66TH ANNUAL ACADEMY AWARDS TELECAST ON THE ABC NETWORK MONDAY NIGHT DREW 311 OF THE NATION'S 942 MILLION TV HOUSEHOLDS ON A PAR WITH LAST YEAR'S 312 ABOUT 78 MILLION PEOPLE WATCHED THE SHOW THIS YEAR ONE MILLION FEWER THAN LAST BECAUSE THERE WERE FEWER VIEWERS IN FRONT OF EACH SET ABC ESTIMATED ABC IS A UNIT OF CAPITAL CITIES/ABC WHO'S NEWS BURSONMARSTELLER THE PUBLIC RELATIONS FIRM NAMED JAMES B LINDHEIM TO THE POST OF WORLDWIDE CHAIRMAN AND ELECTED HIM TO BE A MEMBER OF THE BOARD AT THE CLOSELY HELD PARENT COMPANY YOUNG & RUBICAM MR LINDHEIM SUCCEEDS JAMES H DOWLING WHO IS STEPPING DOWN BURSON SAID IN A STATEMENT ADDING THAT HE AND THE FIRM ARE IN DISCUSSION REGARDING HIS FUTURE PLANS 9403230040 940323 BUSINESS BRIEF EASTMAN KODAK CO SONY SEEKS POSTPONEMENT OF PATENTINFRINGEMENT SUIT JAPAN'S SONY CORP SAID IT FILED A MOTION YESTERDAY TO POSTPONE A PATENTINFRINGEMENT SUIT BROUGHT BY EASTMAN KODAK CO LAST YEAR SONY'S MOTION FOLLOWS LAST WEEK'S RULING BY THE US PATENT AND TRADEMARK OFFICE THAT REJECTED KODAK'S PATENT CLAIMS THAT ARE AT ISSUE IN THE LAWSUIT KODAK HAS 60 DAYS TO RESPOND TO THE OFFICE'S ACTION SONY ASKED THE COURT TO POSTPONE THE TRIAL SCHEDULED FOR JUNE UNTIL A FINAL RULING BY THE PATENT OFFICE IS ISSUED AN EARLIER MOTION FOR POSTPONEMENT WAS DENIED YESTERDAY'S FILING WAS FOR A RECONSIDERATION OF THAT MOTION KODAK IS SUING SONY AND ITS SONY CORP OF AMERICA UNIT FOR ALLEGEDLY INFRINGING ON KODAK'S 1981 US PATENT COVERING MAGNETIC RECORDING TECHNOLOGY SONY HAS SAID THAT THE PATENT IS INVALID BASED ON TECHNOLOGY WHICH WAS IN THE PUBLIC DOMAIN BEFORE KODAK FILED ITS PATENT 9403230039 940323 WHAT'S NEWS WORLDWIDE THE HOUSE VOTED TO HOLD HEARINGS ON THE WHITEWATER AFFAIR BUT SET NO DATES THE 40815 VOTE FOLLOWED THE EXAMPLE OF THE SENATE AND INSTRUCTED HOUSE LEADERS TO DESIGN A FORMAT AND SCHEDULE THAT WON'T INTERFERE WITH A SPECIAL COUNSEL'S INQUIRY INTO FINANCIAL DEALINGS BY PRESIDENT AND HILLARY RODHAM CLINTON CONGRESS'S PASSOVEREASTER RECESS WHICH BEGINS THIS WEEK COULD DELAY ARRANGEMENTS BUT SENATE REPUBLICANS ARE SET TO PUSH FOR CREATION OF A SPECIAL PANEL THE CLINTONS HAVE DENIED ANY IMPROPRIETY DAVID HALE A FORMER ARKANSAS JUDGE PLEADED GUILTY TO TWO FELONY CHARGES IN A PLEA BARGAIN THAT WILL ALLOW HIM TO TESTIFY BEFORE A WHITEWATER GRAND JURY ISRAEL AND THE PLO REACHED A TENTATIVE AGREEMENT THAT COULD REVIVE PEACE TALKS STALLED SINCE THE HEBRON MASSACRE OFFICIALS FROM BOTH SIDES SAID UNDER THE PACT WHICH MUST BE RATIFIED BY ISRAELI PRIME MINISTER RABIN ISRAEL WOULD ALLOW UN TROOPS IN THE WEST BANK AND GAZA STRIP AND ISRAELI SETTLERS WOULD BE MOVED FROM HEBRON SOUTH AFRICA'S TRANSITIONAL COUNCIL TOOK CONTROL OF THE BLACK HOMELAND OF CISKEI AFTER ITS LEADER QUIT AND ASKED THE CENTRAL GOVERNMENT FOR HELP IT WAS THE SECOND OF THE HOMELAND GOVERNMENTS SET UP IN THE APARTHEID ERA TO FALL IN THE PAST TWO WEEKS IN NATAL ZULU MILITANTS ATTACKED HOMES OF BLACK OPPONENTS KILLING AT LEAST THREE CHRISTOPHER SAID PROGRESSIVELY STRONGER MEASURES MAY BE NEEDED TO PERSUADE NORTH KOREA TO OPEN SUSPECTED NUCLEARARMS SITES TO INSPECTORS CHINA WHILE WARNING SANCTIONS COULD BE COUNTERPRODUCTIVE DIDN'T REJECT THE IDEA MEANWHILE THE DISPUTE IS PUSHING JAPAN TO CONSIDER ADJUSTING ITS DEFENSES A UN RELIEF PLANE LANDED IN TUZLA MARKING THE FIRST USE OF THE BOSNIAN CITY'S AIRPORT FOR AID FLIGHTS SINCE IT WAS SHUT BY A SERB SIEGE TWO YEARS AGO UN OFFICIALS ALSO SAID TRUCKS WERE REACHING THE CITY WITH LITTLE TROUBLE IN SARAJEVO UN OFFICIALS SAID SERBS BEGAN PULLING BACK HEAVY ARMS FOUND INSIDE AN EXCLUSION ZONE AROUND THE CITY MEXICO'S CAMACHO RULED OUT A BID FOR THE PRESIDENCY THAT WOULD HAVE SPLIT THE PARTY THAT HAS RULED FOR 65 YEARS HIS ANNOUNCEMENT SENT SHARES SOARING ON THE MEXICAN STOCK EXCHANGE CAMACHO A FORMER FOREIGN MINISTER ACHIEVED PROMINENCE RECENTLY AS GOVERNMENT NEGOTIATOR IN PEACE TALKS WITH REBELS IN CHIAPAS PREMIER LI PENG SAID CHINA WOULD MAKE GREAT EFFORTS TO IMPROVE RELATIONS WITH THE US A MARKED DEPARTURE FROM RECENT RHETORIC BY BEIJING IN WASHINGTON SENIOR WHITE HOUSE OFFICIALS MET TO REAFFIRM THE US POSITION THAT CHINA WILL LOSE ITS FAVORABLE TRADING STATUS IF IT DOESN'T IMPROVE ITS RECORD ON HUMAN RIGHTS THE SUPREME COURT AFFIRMED TWO STATE DEATHPENALTY CONVICTIONS BUT EXPRESSED CONCERN THAT JUDGES' INSTRUCTIONS TO JURIES IN THE CASES MAY HAVE BEEN CONFUSING IN DEFINING THE TERM BEYOND A REASONABLE DOUBT JUSTICES FOUND HOWEVER THAT THE PROBLEM WASN'T GRAVE ENOUGH TO OVERTURN THE CONVICTIONS RUSSIA AGREED TO A SERIES OF BUDGETBALANCING MEASURES PAVING THE WAY FOR 15 BILLION IMF LOAN MOSCOW'S DRAFT BUDGET WHICH RUNS A DEFICIT EQUAL TO 9 OF GDP WAS SUPPORTED BY IMF OFFICIALS BUT IT APPEARS CERTAIN TO BOOST FRICTION WITH BIG INDUSTRIAL AND FARM LOBBIES DEMANDING LARGER GOVERNMENT SUBSIDIES IRAQ IS MAKING THREATENING MOVES AGAINST A UNPROTECTED KURDISH ENCLAVE IN RETALIATION FOR UN REFUSAL TO LIFT SANCTIONS AGAINST BAGHDAD AND ALLOW IT TO SELL OIL US AND KURDISH OFFICIALS SAY THE OFFICIALS SAY IRAQ RECENTLY HAS MOVED ELITE REPUBLICAN GUARD UNITS TO THE NORTHERN ENCLAVE AND ESCALATED EFFORTS TO DESTABILIZE IT THE US PROPOSED THAT THE UN SECURITY COUNCIL BE EXPANDED TO 20 MEMBERS AND REPEATED ITS CALL FOR PERMANENT SEATS FOR GERMANY AND JAPAN THE COUNCIL NOW HAS 15 MEMBERS FIVE OF WHICH ARE PERMANENT THE US DIDN'T MAKE ANY RECOMMENDATIONS ON POSSIBLE CHANGES IN VETO POWERS ONLY PERMANENT MEMBERS CAN NOW VETO RESOLUTIONS NICARAGUA'S MILITARY CHIEF WAS ORDERED RESTRICTED TO MANAGUA BY AN ARMY PROSECUTOR PRESIDING OVER AN INVESTIGATION OF A 1990 KILLING THE CASE HAS BECOME A FOCAL POINT FOR CRITICISM OF HUMBERTO ORTEGA BROTHER OF THE COUNTRY'S FORMER SANDINISTA PRESIDENT 9403230038 940323 BELLSOUTH LIKELY TO SEEK BETTER TERMS FOR STAKE IN QVC HIT BY STOCK SLIDE BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BELLSOUTH CORP WILL LIKELY PUSH TO REVISE THE TERMS OF ITS PROPOSED 500 MILLION INVESTMENT IN QVC INC LOOKING FOR A CHEAPER PRICE TAG OR OTHER ADJUSTMENTS TO OFFSET A STEEP SLIDE IN QVC'S SHARE PRICE THE ATLANTABASED REGIONAL BELL TELEPHONE COMPANY HAS UNTIL AUG 15 TO DECIDE WHETHER TO PROCEED WITH THE INVESTMENT IN BARRY DILLER'S HOMESHOPPING CHANNEL LAST NOVEMBER AS QVC SHARES TRADED IN THE 50ANDUP RANGE BELLSOUTH HAD AGREED TO PAY 60 A SHARE FOR ABOUT 83 MILLION NEW SHARES OR ROUGHLY A 12 STAKE GETTING TWO SEATS ON THE QVC BOARD BUT QVC'S STOCK PRICE HAS HOVERED DOWN IN THE LOW 40 RANGE FOR MUCH OF THE TIME SINCE CLOSING YESTERDAY AT 40125 DOWN 375 CENTS OR 09 IN NASDAQ STOCK MARKET TRADING QVC'S NOSE DIVE HAS BEEN HELPED ALONG BY A LESSTHANSTELLAR FOURTHQUARTER PERFORMANCE AND BALLOONING COSTS OF LAUNCHING TVSHOPPING SERVICES IN LATIN AMERICA AND THE UNITED KINGDOM SAID CRAIG BIBB A CABLE ANALYST FOR PAINEWEBBER INC IF BELLSOUTH WERE PAYING MARKET VALUE FOR QVC'S STOCK TODAY ITS HALFBILLIONDOLLAR INVESTMENT WOULD ENTITLE IT TO ACQUIRE NEARLY 125 MILLION SHARES AND UPWARD OF A 16 STAKE ALTHOUGH IT ISN'T AT ALL CLEAR THAT MR DILLER WOULD BE OPEN TO SUCH AN OPTION REVISING THE TERMS WOULDN'T BE AS CRITICAL AN ISSUE IF QVC'S SHARE PRICE ROSE ENOUGH BY BELLSOUTH'S DOORDIE AUGUST DEADLINE BUT PAINEWEBBER'S MR BIBB BELIEVES IT COULD TAKE A YEAR FOR QVC STOCK TO HIT 60 PEOPLE FAMILIAR WITH THE DEAL ALSO EXPECT THE BABY BELL TO PUSH TO LINK AN INVESTMENT TO A SUCCESSFUL EFFORT BY QVC TO TAKE OVER ANOTHER PROGRAMMING PROPERTY SUCH AS A HOLLYWOOD STUDIO OR ANOTHER CABLE CHANNEL EARLE MAULDIN BELLSOUTH'S CHIEF FINANCIAL OFFICER SAID IN AN INTERVIEW THAT IT IS TOO EARLY TO SAY WHETHER BELLSOUTH WILL PROCEED WITH ITS OPTION TO INVEST IN QVC BUT HE INDICATED THAT THE BABY BELL KNOWN AS A TIGHTFISTED NEGOTIATOR WOULDN'T BE WILLING TO PAY A PREMIUM FOR QVC AS IT STANDS TODAY OBVIOUSLY WHEN THE OPTION IS AT 60 AND QVC IS SELLING IN THE LOW 40S WE WOULD HAVE A VALUE QUESTION AS WE APPROACH THE EXPIRATION DATE OF THAT OPTION MR MAULDIN SAID YOU DON'T HAVE TO BE A ROCKET SCIENTIST TO FIGURE THAT OUT HE ADDED BELLSOUTH'S ULTIMATE CLOUT IN PUSHING FOR ANY CHANGES WOULD BE THE THREAT OF PULLING OUT ALTOGETHER BUT BELLSOUTH MAY HAVE A HARD TIME PERSUADING QVC'S MR DILLER TO GO ALONG WITH ANY CHANGES WITH ZERO DEBT AND 200 MILLION IN ANNUAL CASH FLOW QVC HAS ENOUGH CLOUT TO FINANCE MOST CABLE ACQUISITIONS ON ITS OWN SAID PAINEWEBBER'S MR BIBB QVC DOESN'T NEED THEIR MONEY UNLESS THEY GO AFTER A MAJOR ACQUISITION HE SAID MR DILLER FOR HIS PART SAID BELLSOUTH HASN'T TOLD HIM OF ANY PLANS TO PUSH FOR NEW TERMS WE HAVEN'T HEARD FROM THEM AT ALL HE SAID IN AN INTERVIEW MR DILLER IS SAID TO BE INTERESTED IN MAKING A RUN AT MGM STUDIOS AMONG OTHER PROPERTIES BELLSOUTH'S MR MAULDIN WON'T COMMENT ON ANY SUCH POSSIBILITIES AS THEY RELATE TO BELLSOUTH SAYING ONLY THAT I DON'T SEE ANY REASON WE COULDN'T REVISIT THE TERMS WE COULD LET IT LAPSE REDISCUSS THE BUSINESS RELATIONSHIP BETWEEN THE PARTIES OR PAY 60 FOR SOMETHING THAT IS SELLING FOR 45 BECAUSE OF WHAT WE BELIEVE WILL HAPPEN IN THE FUTURE MR MAULDIN SAID IT'S TOO SPECULATIVE TO DEDUCE WHAT WE MIGHT DO RIGHT NOW HE CAUTIONS HOWEVER THAT A LOT COULD HAPPEN BETWEEN NOW AND THEN TO FORCE BELLSOUTH'S HAND QVC'S STOCK PRICE COULD BE BACK UP TO 60 BY THEN MR MAULDIN SAYS BELLSOUTH HAS MADE IT CLEAR THAT IT IS KEENLY INTERESTED IN ACQUIRING MAJOR PROGRAMMING ASSETS AND QVC OFFERS UP ENVIABLE PROSPECTS ON THAT SCORE THE TELEPHONE COMPANY HAD AGREED LAST FALL TO INVEST AS MUCH AS 15 BILLION TO HELP QVC IN ITS HOSTILE BID FOR PARAMOUNT COMMUNICATIONS INC ALMOST SOLELY BECAUSE OF THE STUDIO'S MOTHERLODE OF PROGRAMMING RICHES QVC ULTIMATELY LOST THE HIGHSTAKES TUGOFWAR FOR PARAMOUNT TO VIACOM INC LEAVING BELLSOUTH WITH A FALLBACK OPTION TO INVEST 500 MILLION IN QVC SOME WALL STREET ANALYSTS SAY THE ONLY QUESTION IS EXACTLY WHEN THE REGIONAL BELL COMPANY WILL PUSH FOR NEW TERMS UNTIL SOMETHING IS SIGNED IN BLOOD EVERYTHING IS SUBJECT TO RENEGOTIATION SAID JACK GRUBMAN A PARTNER AT SALOMON BROTHERS INC JOHNNIE L ROBERTS CONTRIBUTED TO THIS ARTICLE 9403230037 940323 BUSINESS BRIEF HARRY'S FARMERS MARKET INC COMPANY PLANS TO CURTAIL ITS STORE EXPANSION PLANS HARRY'S FARMERS MARKET INC SAID IT IS CURTAILING STORE EXPANSION PLANS IN THE FACE OF RECENT LOSSES THE CHAIN OF FIVE FOOD STORES SAID IT HAD PLANNED TO OPEN TWO LARGE FARMERS' MARKETS AND AS MANY AS THREE MORE SPECIALTY CONVENIENCE STORES THIS FISCAL YEAR INSTEAD THE ATLANTA COMPANY WILL OPEN ONE LARGE FARMERS' MARKET DURING FALL AT THE EARLIEST AND POSTPONE THE OTHER LARGE STORE SET FOR NASHVILLE TENN INDEFINITELY THE SPECIALTY STORE OPENINGS ALSO WILL BE DELAYED THE COMPANY SAID THE COMPANY SAID IT WILL SLOW GROWTH PLANS UNTIL IT CAN FIX PROBLEMS IT HAS HAD WITH MANUFACTURING AND DISTRIBUTION FACILITIES THE COMPANY ANNOUNCED IN JANUARY THAT IT EXPECTS TO REPORT A PRETAX LOSS OF 45 MILLION TO 55 MILLION FOR THE FISCAL FOURTH QUARTER ENDED FEB 2 9403230036 940323 BUSINESS BRIEF HEALTHTRUST INC FTC TO SEEK COURT ORDER TO BLOCK HOSPITAL PURCHASE THE FEDERAL TRADE COMMISSION SAID IT WILL SEEK A FEDERAL COURT ORDER BLOCKING THE PLANNED ACQUISITION BY HEALTHTRUST INC OF THREE HOLY CROSS HEALTH SYSTEM CORP HOSPITALS IN UTAH THE FTC WILL ALLEGE THAT THE ACQUISITION WOULD SIGNIFICANTLY DECREASE COMPETITION FOR INPATIENT ACUTECARE HOSPITAL SERVICES IN THE SALT LAKE CITY METROPOLITAN AREA AN AGENCY STATEMENT SAID BOTH HEALTHTRUST NASHVILLE TENN AND HOLY CROSS A NONPROFIT ORGANIZATION SPONSORED BY THE CONGREGATION OF THE SISTERS OF THE HOLY CROSS IN NOTRE DAME IND OPERATE HOSPITALS IN THE SALT LAKE CITY AREA HEALTHTRUST WHICH OPERATES 81 HOSPITALS IN 21 STATES IN THE SOUTH AND WEST WAS DISAPPOINTED WITH THE AGENCY'S DECISION SAID KENT WALLACE REGIONAL VICE PRESIDENT WE HAVE MAINTAINED ALL ALONG THAT THE SALE WOULD BENEFIT OVER 85 OF THE STATE'S RESIDENTS BY PROVIDING THEM WITH THE OPTION OF A COSTEFFECTIVE INTEGRATED HEALTHCARE DELIVERY NETWORK MR WALLACE SAID HEALTHTRUST STILL HAS A NUMBER OF OPTIONS IT MIGHT PURSUE WE WILL WEIGH EACH OPTION HE SAID AND DETERMINE WHERE WE GO FROM HERE 9403230035 940323 BUSINESS BRIEF CANYON RESOURCES CORP COMPANY SEEKS TO RAISE ITS STAKE IN JOINT VENTURE CANYON RESOURCES CORP SAID IT IS HOLDING TALKS WITH A MAJOR GOLD MINING COMPANY IN AN EFFORT TO INCREASE ITS 30 INTEREST IN THE SEVENUP PETE JOINT VENTURE WHICH HOLDS A MINING PROSPECT IN MONTANA CANYON'S ANNOUNCEMENT FOLLOWS A DECISION BY PHELPS DODGE CORP THE 72 HOLDER OF THE 82 MILLIONOUNCE PROJECT TO INVESTIGATE WHETHER TO SELL ITS INTEREST IN THE GOLD PROSPECT OR CONTINUE WITH PLANS TO DEVELOP IT INTO A GOLD MINE PHELPS DODGE A COPPER PRODUCER IN PHOENIX SAID IT WANTS TO MAKE THE DECISION TO HOLD OR SELL BEFORE THE JOINT VENTURE BEGINS THE PROCESS OF ACQUIRING GOVERNMENT PERMITS TO DEVELOP THE MINE CANYON SAID IT IS DISCUSSING THE POSSIBILITY OF BUYING PHELPS DODGE'S SHARE OF THE PROJECT WITH THE MAJOR MINING COMPANY THAT IT DECLINED TO NAME A SPOKESWOMAN FOR THE SMALL GOLDMINING COMPANY SAID IT HAS 20 MILLION IN CASH AND IS CONSIDERING PAYING FOR AN ADDITIONAL SHARE OF THE PROJECT WITH CASH OR A COMBINATION OF CASH AND OTHER FINANCING 9403230034 940323 BUSINESS BRIEF AMRE INC INVESTORS EXPRESS INTEREST IN ACQUIRING THE COMPANY AMRE INC DALLAS SAID IT RECEIVED A LETTER FROM A DALLAS FINANCIAL ADVISER REPRESENTING INVESTORS INTERESTED IN BUYING THE COMPANY THE KITCHENCABINET MARKETER SAID IT HAS RECEIVED NO FORMAL OFFER EITHER FROM THE ADVISER LSI CAPITAL OR FROM THE INVESTORS WHO WEREN'T IDENTIFIED AS FAR AS THE BOARD OF AMRE IS CONCERNED NO OFFER HAS BEEN MADE A SPOKESMAN SAID LSI WHICH DIDN'T RETURN TELEPHONE CALLS SAID THE INVESTORS PRIMARILY ARE INTERESTED IN PURCHASING 21 OF THE COMPANY'S SHARES OUTSTANDING HELD BY TWO FORMER EXECUTIVES WHO LEFT THE COMPANY IN 1991 AND LATER AGREED TO A CONSENT DECREE IN A FEDERAL SECURITIES PROBE ACCORDING TO THE LSI LETTER THE INVESTORS ARE WILLING TO BUY THE PAIR'S STOCK FOR 485 A SHARE OR ABOUT 62 MILLION PROVIDED THAT THE TRANSACTION IS COMPLETED WITH THE CONSENT AND COOPERATION OF AMRE'S BOARD THE LETTER ALSO SAID IT IS WILLING TO CONSIDER BUYING ALL OF THE COMPANY'S SHARES AT THE SAME PRICE IN A FRIENDLY TRANSACTION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AMRE SHARES CLOSED AT 4 DOWN 25 CENTS 9403230033 940323 BUSINESS BRIEF PWA CORP PACT WITH AIR CANADA CLEARS PATH FOR INFUSION BY AMR CANADIAN INTERNATIONAL AIRLINES PARENT PWA CORP SIGNED A FORMAL COOPERATION PACT WITH AIR CANADA LTD CLEARING AWAY THE LAST OBSTABLE TO A MUCHNEEDED EQUITY INFUSION FROM AMR CORP A SPOKESWOMAN FOR CALGARYBASED PWA SAID THAT WITH THE AGREEMENT THE COMPANY IS WORKING TOWARD CONCLUDING ITS PROPOSED TRANSACTION WITH AMR DALLAS BY THE MIDDLE OF NEXT MONTH THE TRANSACTION WOULD SEE AMERICAN AIRLINES PARENT AMR INJECT 246 MILLION CANADIAN DOLLARS US180 MILLION INTO PWA WHICH HAS HAD A STRING OF ANNUAL LOSSES PROVIDED THAT CANADIAN TRANSFERS ITS SEATRESERVATION AND OTHER DATAPROCESSING SERVICES TO AMR'S SABRE NETWORK IN A JOINT ANNOUNCEMENT AIR CANADA TORONTO SAID IT WILL FULLY COOPERATE WITH CANADIAN IN THE TRANSFER ADDING THAT PWA AND AN AFFILIATE OF UAL CORP'S UNITED AIRLINES HAVE TRANSFERRED TO AIR CANADA THEIR INTERESTS IN THE GEMINI SEATRESERVATION SYSTEM THAT THEY PREVIOUSLY OWNED JOINTLY WITH AIR CANADA LEAVING AIR CANADA AS GEMINI'S SOLE OWNER 9403230032 940323 BUSINESS BRIEF FUTURE COMMUNICATIONS INC US JUDGE CONVERTS CASE TO CHAPTER 7 NAMES TRUSTEE A FEDERAL JUDGE IN FUTURE COMMUNICATIONS INC'S BANKRUPTCYCOURT PROCEEDINGS CONVERTED THE CASE TO CHAPTER 7 AND APPOINTED AN INDEPENDENT TRUSTEE TO OVERSEE THE COMPANY'S OPERATIONS SHAREHOLDERS OF THE CABLE TELEVISION AND PROGRAMMING COMPANY IN DALLAS HAD SOUGHT THE JUDGE'S RULING AN ATTORNEY FOR JOHN H LITZLER THE TRUSTEE SAID THE JUDGE STEVEN A FELSENTHAL IS ALLOWING MR LITZLER 10 DAYS TO DETERMINE IF FUTURE CAN BE OPERATED OR IF ITS ASSETS SHOULD BE LIQUIDATED THE COMPANY HAD BEEN OPERATING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE WHICH PROTECTS A DEBTOR FROM ITS CREDITORS WHILE IT ATTEMPTS TO REORGANIZE ITS BUSINESS CHAPTER 7 GOVERNS LIQUIDATIONS MR LITZLER'S ATTORNEY MICHAEL QUILLING SAID THE TRUSTEE HAS ASSUMED CONTROL OF FUTURE HE SAID MR LITZLER PLANS TO MEET WITH FUTURE'S OFFICERS TODAY AND ARRANGE TO EXAMINE THE COMPANY'S BOOKS COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT 9403230031 940323 BUSINESS BRIEF ORACLE CORP THIRDPERIOD PROFIT DOUBLED ON DATABASESOFTWARE SALES ORACLE CORP REDWOOD CITY CALIF SAID PROFIT MORE THAN DOUBLED TO 70 MILLION OR 24 CENTS A SHARE IN THE THIRD QUARTER ENDED FEB 28 CITING STRONG SALES OF NEWER VERSIONS OF ITS DATABASE SOFTWARE A YEAR EARLIER NET INCOME WAS 29 MILLION OR 10 CENTS A SHARE EXCLUDING A NONRECURRING LITIGATION CHARGE IN THE 1993 PERIOD OF 24 MILLION OR FIVE CENTS A SHARE EARNINGS INCREASED 56 SALES ROSE 30 TO 483 MILLION FROM 370 MILLION THE RESULTS WERE AT THE UPPER END OF ANALYSTS' EXPECTATIONS ZACK'S INVESTMENT RESEARCH INC SAID THE AVERAGE ESTIMATE WAS 23 CENTS A SHARE WITH ALL PROJECTIONS RANGING FROM 21 CENTS TO 26 CENTS ORACLE SAID ITS STRONGEST GROWTH CAME IN NEWER VERSIONS OF ITS DATABASE SOFTWARE THE COMPANY SAID SALES OF ITS DATABASE SOFTWARE FOR DESKTOP COMPUTERS INCREASED 67 OVER THE YEAREARLIER PERIOD WHILE SALES OF SOFTWARE FOR THE UNIX OPERATING SYSTEM GREW 37 THE COMPANY'S RESULTS WERE REPORTED AFTER STOCK MARKETS CLOSED ORACLE'S SHARES CLOSED AT 3325 DOWN 875 CENTS 9403230030 940323 BUSINESS BRIEF DIME SAVINGS BANK OF NEW YORK MORTGAGE PLAN WILL SETTLE MASSACHUSETTS' STATE PROBE DIME SAVINGS BANK OF NEW YORK SAID IT WILL OFFER A 6 MILLION MORTGAGE PROGRAM IN MASSACHUSETTS TO SETTLE A PROBE OF ITS LENDING PRACTICES IN THE STATE THE AGREEMENT WITH THE STATE'S ATTORNEY GENERAL FOLLOWS A LENGTHY INVESTIGATION OF THE LENDING PRACTICES OF DIME REAL ESTATE SERVICES MASSACHUSETTS INC A FORMER REALESTATE SERVICES SUBSIDIARY DURING THE LATE 1980S ATTORNEY GENERAL SCOTT HARSHBARGER SAID CUSTOMERS SAID THAT DIME LOAN REPRESENTATIVES HAD NOT ADEQUATELY EXPLAINED THE RISKS OF NEGATIVE AMORTIZATION MORTGAGE LOANS AMONG OTHER COMPLAINTS THE BANK WHICH HAS MAINTAINED THAT ITS LENDING PRACTICES WERE NOT IMPROPER SAID THE AGREEMENT COULD NOT BE CONSTRUED AS IMPLYING ANY FINDING OF WRONGDOING AMONG OTHER FEATURES THE MASSACHUSETTS PROGRAM WOULD ALLOW DIME BORROWERS TO CONVERT NEGATIVE AMORTIZATION LOANS INTO FIXED OR ADJUSTABLERATE LOANS WITH NO POINTS BORROWERS FACING FORECLOSURE MAY RESTRUCTURE THEIR LOANS AND THOSE WHO HAVE ALREADY LOST THEIR HOME THROUGH FORECLOSURE MAY APPLY FOR FORGIVENESS OF AMOUNTS STILL OWED 9403230029 940323 BUSINESS BRIEF SPRINGS INDUSTRIES COSTCUTTING PRICE RISE SET IN RESPONSE TO PROFIT DROP SPRINGS INDUSTRIES FORT MILL SC SAID IT PLANS TO CUT ANNUAL OPERATING COSTS BY 15 MILLION AND BOOST PRICES ON ITS BEDDING PRODUCTS IN RESPONSE TO AN EXPECTED 30 TO 40 DECLINE IN FIRSTQUARTER OPERATING EARNINGS PER SHARE THE TEXTILE CONCERN SAID IT WOULD REDUCE SALARIED JOBS THROUGH CONSOLIDATION ATTRITION AND A HOLD ON HIRING AS WELL AS DEFER CERTAIN CAPITAL PROJECTS SPRINGS DECLINED TO SPECIFY HOW MANY JOBS MIGHT BE LOST OR WHICH PROJECTS MIGHT BE AFFECTED IT ALSO SAID IT WOULD CUT COSTS BY BOOSTING EFFICIENCIES IN ADMINISTRATIVE AREAS SPRINGS SAID THE MOVES FOLLOW LOWERTHANANTICIPATED EARNINGS IN THE FIRST TWO MONTHS OF 1994 SPRINGS SAID IT EXPECTS TO POST A FIRSTQUARTER PROFIT OF 30 CENTS TO 35 CENTS A SHARE IN THE 1993 FIRST QUARTER SPRINGS HAD OPERATING PROFIT OF 92 MILLION OR 51 CENTS A SHARE ON REVENUE OF 5018 MILLION AN ACCOUNTING ADJUSTMENT OF 725 MILLION RESULTED IN A NET LOSS OF 634 MILLION OR 356 A SHARE 9403230028 940323 BUSINESS BRIEF COLTEC INDUSTRIES INC MORGAN STANLEY AND INVESTORS TO SELL 33 STAKE IN FIRM MORGAN STANLEY CO MOVED TO CASH OUT ALL OF ITS SUBSTANTIAL INVESTMENTS IN COLTEC INDUSTRIES INC IN A PROPOSED SECONDARY OFFERING THAT COULD RAISE MORE THAN 450 MILLION FOR MORGAN AND OTHER INVESTORS COLTEC SHARES DECLINED 1375 A SHARE OR 65 TO 19625 AFTER THE ANNOUNCEMENT IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION COLTEC SAID THE INVESTORS PLAN TO SELL 232 MILLION COMMON SHARES WHICH WOULD BE WORTH ABOUT 455 MILLION AT YESTERDAY'S CLOSING PRICE THE INVESTORS INCLUDING MORGAN STANLEY LEVERAGED EQUITY FUND II LP PLAN TO SELL ABOUT 33 OF THE COMPANY'S 696 MILLION COMMON SHARES OUTSTANDING THE PRICE THEY PAID FOR THE SHARES WASN'T AVAILABLE COLTEC A MAKER OF AEROSPACE AUTOMOTIVE AND OTHER INDUSTRIAL PRODUCTS HAD 1993 REVENUE OF 13 BILLION IT WAS TAKEN PRIVATE IN A LEVERAGED BUYOUT IN 1988 FOR ABOUT 660 MILLION AND WENT PUBLIC IN MARCH 1992 AT 15 A SHARE 9403230027 940323 MARKETING BRIEF FINGERHUT CO MARKETER TO LAUNCH SERVICE FOR CABLE HOMESHOPPING IN A BID TO ENTER THE COMPETITIVE HOMESHOPPING FIELD FINGERHUT CO WILL LAUNCH S THE SHOPPING NETWORK THIS FALL THE COMPANY SAID TWO OF THE LARGEST CABLE OPERATORS IN THE US AGREED TO PROVIDE THE NEW HOMESHOPPING SERVICE TO FOUR MILLION SUBSCRIBERS THE TWO OPERATORS ARE CONTINENTAL CABLEVISION INC WHICH SERVES 29 MILLION SUBSCRIBERS AND TIME WARNER CABLE A UNIT OF TIME WARNER INC WHICH SERVES 72 MILLION SUBSCRIBERS FINGERHUT A MINNEAPOLIS DIRECTMARKETING COMPANY SAID THE MERCHANDISING MIX WILL FOCUS ON CONSUMER GOODS SUCH AS HOUSEWARES FITNESS PRODUCTS AND ELECTRONICS THE NEW NETWORK'S PROGRAMMING WILL ALSO INTEGRATE INFOMERCIALS PRODUCED BY FINGERHUT'S USA DIRECT INC SUBSIDIARY NEITHER CONTINENTAL NOR TIME WARNER HAS YET SET A SCHEDULE FOR LAUNCHING THE SERVICE LARGELY BECAUSE THE CABLE INDUSTRY IS CAUGHT IN A SQUEEZE FOR CHANNEL SPACE EXPANDED CHANNEL CAPACITY WILL REQUIRE EXPENSIVE NEW DIGITAL TECHNOLOGY TO BE DEPLOYED IN CABLE SYSTEMS A GRADUAL PROCESS EXPECTED TO START IN 1995 9403230026 940323 LEHMAN LAUNCHES TOUGH COSTCUTTING DRIVE BY ALEXANDRA PEERS AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK LEHMAN BROTHERS INC HAS LAUNCHED A TOUGH COSTCUTTING DRIVE THAT COULD FORCE THE DEPARTURE OF AS MANY AS 400 INVESTMENT BANKERS TRADERS AND SALESPEOPLE THE CORPORATE HOUSECLEANING PAVES THE WAY FOR LEHMAN'S SPINOFF BY PARENT AMERICAN EXPRESS CO LATER THIS SPRING THE CUTS WERE NEEDED TO BRING LEHMAN'S BLOATED COSTS MORE IN LINE WITH OTHER BROKERAGE HOUSES ANALYSTS AND LEHMAN OFFICIALS SAID AND TO MAKE LEHMAN STOCK MORE PALATABLE TO INVESTORS WE'RE ASKING HIGHTICKET PEOPLE WHO AREN'T PRODUCTIVE TO LEAVE A LEHMAN INSIDER SAID MANY OF THESE SOCALLED HIGHTICKET EMPLOYEES MAKE 300000 TO 500000 OR MORE A YEAR PEOPLE FAMILIAR WITH THE MATTER SAY AND ALL BUT ABOUT A FIFTH OF THEM HAVE BEEN NOTIFIED THE FORCED DEPARTURES COME IN TANDEM WITH FIRMWIDE PERFORMANCE AND PRODUCTIVITY REVIEWS BEHIND THE MOVE IS A BID BY LEHMAN TO SHED ITS SPENDTHRIFT WAYS LEHMAN WITH ABOUT 9000 EMPLOYEES PAID OUT 53 OF ITS NET REVENUE IN COMPENSATION LAST YEAR AND 55 A YEAR EARLIER MANY MAJOR WALL STREET INVESTMENT BANKS KEEP THAT PERCENTAGE AT OR BELOW 50 THIS YEAR LEHMAN WANTS TO CHOP ITS PERCENTAGE TO ABOUT 50 IF REVENUE REMAINS AT 1993 LEVELS THIS WILL TRANSLATE INTO SAVINGS OF 70 MILLION IN COMPENSATION ANALYSTS SAY BUT IF REVENUE LAGS BEHIND LAST YEAR IT WILL MEAN FURTHER COSTCUTTING WILL BE NEEDED LEHMAN IS TRIMMING EXPENSES IN OTHER AREAS RANGING FROM CAR SERVICE AND AIR TRAVEL TO LEGAL ADVICE AND PENCIL ORDERS IN ANTICIPATION OF THE PUBLIC OFFERING OF LEHMAN STOCK AMERICAN EXPRESS HAD TO MAKE A CAPITAL INFUSION OF MORE THAN 1 BILLION DOUBLE WHAT IT HAD PLANNED TO SHORE UP LEHMAN'S BALANCE SHEET AND TO MEET DEMANDS BY CREDITRATING AGENCIES OFFERING DOCUMENTS ON LEHMAN STOCK WILL BE RELEASED LATER THIS MONTH THE FIRM'S BOTTOMLINE PROBLEM INSIDERS SAY IS THAT LEHMAN'S SPLIT FROM RETAIL BROKERAGE HOUSE SHEARSON LAST YEAR LEFT LEHMAN WITH THE COSTLY INFRASTRUCTURE OF A HUGE RETAIL FIRM BUT THE OPERATIONS AND EARNINGS POTENTIAL OF AN INVESTMENT BANK SHEARSON JOINED WITH SMITH BARNEY A UNIT OF TRAVELERS INC INDEED 100 OF THE DEPARTURES EARLIER THIS YEAR WERE SALES AND TRADING EMPLOYEES WHO SERVICED THE FIRM'S FORMER RETAILBROKERAGE EFFORT THE ADDITIONAL DEPARTURES TOTALING BETWEEN 200 AND 300 EMPLOYEES WILL LARGELY BE CENTERED IN INVESTMENT BANKING AND SALES AND TRADING WE WANT TO BE FAIR AND HARDNOSED WE WANT TO DO WHAT'S RIGHT BY THE BUSINESS AS WELL AS BY OUR EMPLOYEES SAID T CHRISTOPHER PETTIT MANAGING PARTNER OF THE FIRM AND LEHMAN'S NO 2 EXECUTIVE BUT ONE MOTIVE FOR THE LAYOFFS IS THAT LEHMAN IS HOPING TO REPLACE SOME OF THE DEPARTING EMPLOYEES WITH MORE PRODUCTIVE OR LESSEXPENSIVE COUNTERPARTS LEHMAN IS A PLACE TO BE TODAY IT WASN'T A FEW YEARS AGO SAID MR PETTIT GIVEN THE REPLACEMENT HIRES LEHMAN WON'T BE MATERIALLY SMALLER IN STAFF BY YEAR END EXECUTIVES SAID AGGRESSIVE COSTCUTTING IS ALSO NEEDED BECAUSE LEHMAN IS WIDELY SEEN AS HAVING MISSED THE BEST WINDOW OF OPPORTUNITY FOR A SPINOFF AS A PUBLIC COMPANY MOST BROKERAGEHOUSE STOCKS PEAKED LATE LAST SUMMER AND EARLY FALL WHEN THE UNDERWRITING BOOM WAS STILL GOING AT A FEROCIOUS PACE NOW MOST BROKERAGE HOUSES ARE TRADING AT 15 TO 20 BELOW THEIR 1993 PEAK PRICES AND THE PACE OF THE UNDERWRITING BOOM IS SLOWING YEAR TO DATE WALL STREET SECURITIES FIRMS HAVE UNDERWRITTEN 1307 STOCK AND BOND ISSUES THAT VOLUME IS DOWN 11 FROM THE YEAREARLIER PERIOD ACCORDING TO SECURITIES DATA CO FOR LEHMAN'S SENIOR MANAGEMENT FORCING DEPARTURES AHEAD OF THE FIRM'S SPINOFF REPRESENTS A HIGHWIRE BALANCING ACT ON ONE HAND LEHMAN MUST ASSURE STOCKMARKET INVESTORS AND TRADERS THAT IT IS SERIOUS ABOUT COSTCUTTING AND THAT REVENUE WILL FLOW MORE QUICKLY TO THE BOTTOM LINE ON THE OTHER HAND THE FIRM WANTS TO PREVENT THE ALARM ARISING FROM MASS DEPARTURES THAT CAN HAMSTRING A FIRM AND PARALYZE ITS EMPLOYEES SO FAR DEPARTURES FROM LEHMAN HAVE BEEN NUMEROUS AND HAVE CUT ACROSS DIVISION AND GEOGRAPHIC LINES SOME WERE BY CHOICE SOME FORCED AND MANY AROSE OUT OF SUBSTANTIALLY LOWERTHANEXPECTED YEAREND BONUSES AMONG THE HIGHPROFILE EXITS ROBERT BARBERA LEHMAN'S CHIEF STOCK ECONOMIST SAM WASSERMAN A SENIOR EXECUTIVE AT LEHMAN'S BROKERAGE DIVISION AND RICHARD GILMARTIN WHO HAD BEEN HEAD BOND SALESMAN IN LEHMAN'S HONG KONG OFFICE RIVAL BEAR STEARNS COS HAS RECENTLY HIRED NEARLY A DOZEN LEHMAN EXPATRIATES INCLUDING SEVERAL BOND SALESMEN TRADERS AND BROKERS EQUITABLE COS' DONALDSON LUFKIN & JENRETTE SECURITIES CORP ALSO SNARED TWO LEHMAN BOND SALESMEN THIS YEAR'S DEPARTURES OF HIGHPRICED LEHMAN EMPLOYEES FOLLOWS THE EXODUS OF A TOTAL OF ABOUT 1500 MEMBERS OF LEHMAN'S CORPORATE STAFF SALES AND TRADING SUPPORT AND BACKOFFICE OR TRADEPROCESSING OPERATIONS SINCE LAST APRIL THOSE DEPARTURES STEMMED FROM THE SALE OF THE FIRM'S RETAILBROKERAGE BUSINESS TO PRIMERICA CORP NOW TRAVELERS THE CUTS LAST YEAR INCLUDED MORE THAN 30 LEHMAN BROKERS OR 7 OF ITS REMAINING BROKERAGE FORCE FEW AREAS AT LEHMAN HAVE BEEN SPARED THE AX IN A RECENT MEMO LEHMAN SAID IT HAS SPENT 12 MILLION A YEAR ON COMPANY CABS INCLUDING MORE THAN 12 MILLION FOR WAITING TIME AND MORE THAN 13 MILLION FOR USING CARPHONE SERVICES QUITE FRANKLY AS A FIRM WE ARE A DISASTER WHEN IT COMES TO CAR SERVICE ACCORDING TO THE MEMO WRITTEN BY ROBERT GENIRS A MANAGING DIRECTOR REFERRED TO INTERNALLY AS THE FIRM'S COSTCONTROL CZAR MR GENIRS ALSO COMPLAINED IN THE MEMO ABOUT SEEING COMPANY CABS LINED UP IN DROVES IN FRONT OF LEHMAN'S DOWNTOWN MANHATTAN HEADQUARTERS WELL BEFORE 8 PM WHICH IS WHEN EMPLOYEES ARE ALLOWED TO START USING THE CAR SERVICE LEHMAN WANTS TO SLASH ITS ANNUAL CARSERVICE TAB BY 2 MILLION TO 3 MILLION PEOPLE FAMILIAR WITH THE FIRM SAID LEHMAN ALSO NOW WILL REQUIRE INVESTMENT BANKERS AND OTHERS TO USE AMERICAN EXPRESS TO SET UP AIRTRAVEL PLANS INSTEAD OF ARRANGING THE SCHEDULING THEMSELVES AND THE FIRM PLANS TO SLASH THE NUMBER OF OUTSIDE LAW FIRMS IT USES TO HANDLE ITS LITIGATION DOCKET IT WILL ALSO ORDER PENCILS FROM A SINGLE VENDOR AS OPPOSED TO SEVERAL STATIONERY OUTLETS AMONG OTHER SIGNS OF THE TIMES AROUND LEHMAN THESE DAYS ARE NOTICES TACKED UP AROUND THE OFFICE EXHORTING EMPLOYEES NOT TO SPEND MONEY THE WAY THEY USED TO THE NOTICES READ DON'T JUST ACCEPT IT RETHINKIT ROBERT STEINER IN HONG KONG CONTRIBUTED TO THIS ARTICLE 9403230025 940323 FOREIGN EXCHANGE DOLLAR ENDS LITTLE CHANGED IN SESSION THAT GYRATED WILDLY ON MOVE BY FED BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR WAS LITTLE CHANGED YESTERDAY AFTER GYRATING WILDLY DURING A CONFUSING SESSION THAT INCLUDED A CREDITTIGHTENING MOVE BY THE FEDERAL RESERVE THOUGH THE ANNOUNCEMENT BY ALAN GREENSPAN CHAIRMAN OF THE FEDERAL RESERVE OF A SLIGHT TIGHTENING IN MONETARY POLICY WAS WIDELY ANTICIPATED TRADERS WERE HURT BY ITS TIMING IT CAME JUST HOURS AFTER THE FED WAS SEEN INTERVENING IN ITS ROUTINE OPEN MARKET OPERATIONS TO KEEP INTEREST RATES STEADY MR GREENSPAN'S STATEMENT FOLLOWED A MEETING OF THE FEDERAL OPEN MARKETS COMMITTEE OR FOMC AND WAS INTERPRETED BY THE MARKET TO MEAN A 025 PERCENTAGE POINT BOOST IN US SHORTTERM INTEREST RATES TRADERS SAID THE DOLLAR WAS HELPED SOMEWHAT HIGHER LATE IN THE NORTH AMERICAN DAY BY THE RATEINCREASE NEWS BUT WAS UNABLE TO BREAK OUT OF ITS EARLIERESTABLISHED INTRADAY RANGES THE DOLLAR WOUND UP ONLY MARGINALLY MIXED AGAINST MAJOR CURRENCIES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16885 MARKS UNCHANGED FROM LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 106 YEN UNCHANGED FROM LATE MONDAY STERLING WAS TRADING AT 14880 DOWN FROM 14895 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10605 YEN AND AT 16893 MARKS TRADERS SAID THAT WHILE THE BOND MARKET SURGED ON NEWS OF THE RATE BOOST AMID RELIEF THAT THE FED WASN'T TIGHTENING CREDIT CONDITIONS EVEN MORE SHARPLY THE DOLLAR APPEARED UNSURE OF WHICH DIRECTION TO TAKE TRADERS NOTED THAT A 25BASISPOINT RISE WAS SO FULLY ANTICIPATED THAT THE SIZE COULD ACTUALLY BE REGARDED AS A DISAPPOINTMENT MANY THOUGHT IT WOULD HAVE TAKEN A 50BASISPOINT RISE FOR THE DOLLAR TO MOVE TO NEW HIGHER GROUND EARLIER THE MARKET WAS CAUGHT OFFGUARD WHEN THE FED WAS SEEN AGAINST ALL EXPECTATIONS ADDING LIQUIDITY TO THE RESERVE SYSTEM DURING ITS NORMAL INTERVENTION PERIOD AROUND MIDDAY IN NEW YORK THAT SUGGESTED THE FED INTENDED TO KEEP ITS CLOSELY WATCHED FED FUNDS RATE THE RATE AT WHICH COMMERCIAL BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS AT AROUND THE 325 TARGET LEVEL THAT HAS PREVAILED SINCE THE FEB 4 RATE BOOST UP TO THAT POINT THE DOLLAR HAD BEEN RISING STEADILY IN ANTICIPATION OF ANOTHER RATE INCREASE BUT ON THE FED ACTION THE DOLLAR SPIRALED TO INTRADAY LOWS AGAINST OTHER MAJOR CURRENCIES AS THE MARKET REALIZED THE FED WAS UNWILLING TO BOOST RATES JUST YET THE DOLLAR THEN MADE AN EQUALLY SPECTACULAR RECOVERY WHEN A FED SPOKESMAN MADE THE UNUSUAL ANNOUNCEMENT APPARENTLY TO PLACATE A JITTERY MARKET THAT THE FOMC MEETING WAS STILL UNDER WAY AND HADN'T YET DISCUSSED MONETARY POLICY LATER THE MARKET WAS SURPRISED YET AGAIN BY THE FORMAL FED STATEMENT THAT THE FOMC HAD RATIFIED A RATE BOOST THOUGH WIDELY ANTICIPATED MANY TRADERS HAD BEEN LOOKING FOR THE NEWS TO EMERGE AT THE FED'S INTERVENTION PERIOD TODAY THE JERKY INTRADAY MOVEMENTS FOR THE DOLLAR POINTS TO HOW NERVOUS THE MARKET IS SAID WIN THIN INTERNATIONAL ECONOMIST AT MCM CURRENCYWATCH IN NEW YORK BUT IN THE LONGER TERM THE RATE INCREASE SHOULD GIVE SOME SUPPORT TO A DOLLAR THAT HAS BEEN HURT BY BEARISH SENTIMENT EVEN AS THE US ECONOMY STEAMS AHEAD SAID HILLEL WAXMAN VICE PRESIDENT AT BANK LEUMI IN NEW YORK ON THE OTHER HAND NEITHER WILL IT BOOST THE DOLLAR TO LEVELS AROUND 18000 MARKS THE RANGE THAT THE DOLLAR WAS SEEN GRAVITATING TOWARD EARLIER THIS YEAR MR WAXMAN ADDED HE NOTED THAT THE NEXT MAJOR RATE MOVE IS UP TO THE GERMANS 9403230024 940323 LETTERS TO THE EDITOR IT CAME FROM THE SWAMP AND INVADED CONGRESS YOUR FEB 18 EDITORIAL IN SUPPORT OF THREESTRIKESANDYOU'RE OUT LEGISLATION WAS AS USUAL BRILLIANTLY STATED AND RIGHT ON TARGET I MUST HOWEVER DEFEND MY STATE OF LOUISIANA WHICH WAS YEARS AHEAD OF THE CURVE ON THIS ISSUE THE EDITORIAL SAYS THAT THE THREETIME LOSER LAW WAS AN INITIATIVE FIRST PROPOSED IN A SOPHISTICATED LIBERAL STATE IN THE NORTHWEST CORNER OF THE COUNTRY NOT SOME BAYOU THEN BILL CLINTON GRABBED IT AND SHOVED IT ONTO THE FEDERAL ANTICRIME BILL THE TRUTH IS THAT IT WAS THE BAYOU STATE ITSELF LOUISIANA WHICH FIRST IMPLEMENTED THREE STRIKES THAT WAS WAY BACK IN 1978 WHEN THE STATE LEGISLATURE PASSED A BILL BY MY FRIENDS RON FAUCHEUX AND EMILE PEPPI BRUNEAU WHICH PUTS SERIOUS THREETIME OFFENDERS IN JAIL FOR LIFE WITHOUT PAROLE THEN EMBOLDENED BY WORD OF WASHINGTON STATE'S GRASSROOTS EFFORTS TO GET A THREE STRIKES REFERENDUM ON ITS BALLOT IN 1992 I INTRODUCED MY LIFER BILL IN CONGRESS IN JULY OF THAT YEAR LIFER WHICH IS BAYOU LINGO FOR LIFE IMPRISONMENT FOR EGREGIOUS RECIDIVISTS WOULD APPLY ONLY TO THREETIME VIOLENT FELONS SO IT IS AIMED SQUARELY AT THOSE 6 OF SUCH FELONS WHO COMMIT 70 OF ALL VIOLENT CRIMES I REINTRODUCED LIFER IN JANUARY 1993 AND IN MARCH WITH SOME FANFARE ENLISTED SEN TRENT LOTT OF MISSISSIPPI TO INTRODUCE THE SAME BILL IN THE US SENATE IN NOVEMBER JUST AFTER THE GOOD PEOPLE OF WASHINGTON STATE PASSED THEIR THREESTRIKES BILL IN A 7624 REFERENDUM LANDSLIDE SEN LOTT OFFERED LIFER AS AN AMENDMENT TO THE SENATE CRIME BILL IT PASSED 911 WITHOUT ANY HELP FROM PRESIDENT CLINTON WHOSE ATTORNEY GENERAL WAS AT THE TIME PROSELYTIZING AGAINST MANDATORY SENTENCING OF ANY KIND THE PRESIDENT JUMPED ON BOARD IN JANUARY AFTER MY BILL ALREADY HAD ATTRACTED 187 COSPONSORS IN THE HOUSE IT CURRENTLY HAS 204 SO PLEASE GIVE US BAYOU FOLKS SOME CREDIT ALONG WITH THOSE HEROIC SPHISTICATES IN WASHINGTON STATE AS FOR THE PRESIDENT I WELCOME HIS SUPPORT FOR MY BILL AND WHEN IT PASSES I HOPE HE INVITES MESSRS BRUNEAU AND FAUCHEUX TO THE SIGNING CEREMONY 9403230023 940323 HOUSE APPROVES BILL TO PERMIT INTERSTATE BANKS PROPOSAL STALLED FOR YEARS HAS GAINED MOMENTUM SENATE PLAN IS SIMILAR BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE APPROVED A BILL TO PERMIT BANKS TO OPERATE NATIONWIDE BRANCH NETWORKS AS OPPOSITION TO THE LEGISLATION CONTINUED TO SOFTEN BY A VOICE VOTE THE HOUSE APPROVED AN INTERSTATEBANKING MEASURE THAT HAD BEEN STALLED FOR YEARS THE PROPOSAL COULD SUBSTANTIALLY CHANGE THE FACE OF US BANKING PRODUCING WHAT ITS PROPONENTS DESCRIBE AS A STRONGER GEOGRAPHICALLY DIVERSE SYSTEM THAT WOULD BETTER WITHSTAND THE EFFECTS OF CREDIT CRUNCHES REP BILL MCCOLLUM R FLA RANKING MINORITY MEMBER OF THE HOUSE FINANCIAL INSTITUTIONS SUBCOMMITTEE CALLED THE BILL ONE OF THE MOST SIGNIFICANT PIECES OF LEGISLATION HE HAS SEEN THE BILL WOULD LET BANKS OVER THREE YEARS CREATE NATIONAL NETWORKS BUT THEY COULD MOVE INTO NEW STATES ONLY THROUGH ACQUISITIONS IT'S ABOUT TIME WE DID THIS IT IS LONG OVERDUE SAID REP CHARLES SCHUMER D NY IT WILL ALLOW MORE BANKS TO COMPETE WITH EACH OTHER WHILE ALSO BOOSTING BANKS' COMPETITIVE MUSCLE IN INTERNATIONAL MARKETS HE ADDED THE HOUSE BANKING COMMITTEE APPROVED THE MEASURE BY A 501 VOTE TWO WEEKS AGO AND THE SENATE BANKING COMMITTEE UNANIMOUSLY CLEARED SIMILAR LEGISLATION LATE LAST MONTH SOME OF THE MOMENTUM FOR THE PROPOSAL HAS BEEN GENERATED BY COMPTROLLER OF THE CURRENCY ACTIONS APPROVING CERTAIN REGIONAL BANK EXPANSIONS IN RECENT MONTHS AND OTHER BANKS ARE LIKELY TO SEEK SIMILAR GREEN LIGHTS DEMOCRATIC REPS JOSEPH KENNEDY OF MASSACHUSETTS AND KWEISI MFUME OF MARYLAND SPOKE AGAINST THE BILL SAYING IT DOESN'T PROVIDE ENOUGH BORROWING OPPORTUNITY FOR LOWINCOME PEOPLE AND MINORITIES REP STEVE NEAL D NC CHAIRMAN OF THE FINANCIALINSTITUTIONS SUBCOMMITTEE PROMISED HE WOULD CONSIDER THOSE CONCERNS AT A LATER TIME BUT EVEN MR KENNEDY ACKNOWLEDGED IT IS TIME FOR INTERSTATE BANKING TO HAPPEN THE BILL IS THE BEST COMPROMISE THAT WE HAVE SEEN IN SEVERAL YEARS ON CONSUMER AND OTHER ISSUES ADDED REP MARGE ROUKEMA R NJ REP DOUGLAS BEREUTER R NEB SAID HE WAS CONCERNED THAT THE BILL OFFERS AN OPPORTUNITY FOR TOO MANY RESOURCES TO BE DRAINED FROM SOME RURAL AREAS BUT SAID HE WAS PLEASED THAT STATES CAN OPT AGAINST PERMITTING BANKS TO BRANCH OUT OF THEIR OWN STATES INTO OTHERS REP JAMES LEACH R IOWA SAID INTERSTATE BANKS TEND TO HAVE SKINNIER CAPITAL LEVELS THAN COMMUNITY BANKS AND ARE LESS WILLING TO MAKE RISKORIENTED LOANS MR LEACH THE RANKING MINORITY MEMBER OF THE HOUSE BANKING COMMITTEE SAID THAT BANK REGULATORS WILL HAVE TO BE SURE THAT INTERSTATE EXPANSIONS DON'T LEAD TO SHAKIER BANKS OR TO INDUSTRIAL AND COMMERCIAL LOANS BEING GIVEN A BACK SEAT BUT HE ADDED WITH SOME RELUCTANCE I'M BEING BROUGHT ALONG 9403230021 940323 TEXAS JOURNAL WINNERS & LOSERS FRUGAL MARINES DEVELOPERS OF THE V22 OSPREY TILTROTOR AIRCRAFT IN FORT WORTH HAVE FIGURED WAYS TO SHAVE 5 MILLION FROM THE 37 MILLION PRICE TAG STARGAZERS CONSTRUCTION IS SET TO BEGIN ON THE WORLD'S LARGEST TELESCOPE IN THE DAVIS MOUNTAINS OF WEST TEXAS TEXAS CATHOLICS THE HILL COUNTRY CELLARS WINERY NEAR AUSTIN WILL INTRODUCE A NEW TEXASMADE SACRAMENTAL WINE DUBBED BROTHER THOMAS FIRE CONTROL A SMALL FIRE STARTED BY TEXAS TECH RANGEMANAGEMENT STUDENTS AS AN EXPERIMENT JUMPED ITS BARRIERS AND BURNED MORE THAN 25000 ACRES HOUSTON DOME FANS HOUSTON ROCKETS OWNER LESLIE ALEXANDER WITHDREW HIS SUPPORT FOR A DOWNTOWN DOMED STADIUM FEDWATCHERS FED CHAIRMAN ALAN GREENSPAN'S LASTMINUTE MEETING AT THE WHITE HOUSE FORCED HIM TO CANCEL A SPEECH AT A DALLAS FED SYMPOSIUM 9403230020 940323 PRAGMATIC PAIR YELTSIN HOLDS THE LINE FOR REFORM WITH HELP FROM AN OLD CRITIC PRIME MINISTER CHERNOMYRDIN AND RUSSIA'S PRESIDENT RESIST THREATS TO POWER SETBACKS AND TALK OF COUPS BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL NIZHNY NOVGOROD RUSSIA JUST MONTHS AFTER RUSSIA'S FIRST FREE ELECTIONS NEW BATTLE LINES ARE BEING DRAWN AS THE NATION HURTLES TOWARD ITS NEXT POLITICAL CONFRONTATION PRIME MINISTER VIKTOR CHERNOMYRDIN ONCE COURTED BY REFORMERS AND CONSERVATIVES ALIKE NOW HAS THROWN IN HIS LOT WITH PRESIDENT BORIS YELTSIN AND REFORM WHILE POSSESSING QUITE DIFFERENT STYLES MR YELTSIN AT HIS STRONGEST IS A FIERY CRUSADER FOR CHANGE WHILE MR CHERNOMYRDIN IS A CAUTIOUS DETAILMAN THEY ARE UNITED BY THE PRAGMATIC NEED TO KEEP COMMUNISTS AND ULTRARIGHTISTS OUT OF POWER THE ERA OF COHABITATION' BETWEEN CHERNOMYRDIN AND YELTSIN HAS BEGUN SAYS ALLA YAROSHINSKAYA A MEMBER OF THE PRESIDENT'S ADVISORY COUNCIL OTHERS REACTING TO THE SAME DANGER ARE JOINING IN INCLUDING YEGOR GAIDAR MR CHERNOMYRDIN'S PREDECESSOR AND SOMETIMES CRITIC MR GAIDAR IS NOW CALLING ON RUSSIA'S FRACTIOUS REFORMERS TO RALLY TO THE CAUSE BEFORE IT IS TOO LATE BUT WHILE MESSRS CHERNOMYRDIN AND YELTSIN NOMINALLY CONTROL MOST LEVERS OF RUSSIAN POWER THEIR HOLD MAY ALREADY BE SLIPPING MR YELTSIN IS CLEARLY A WEAKENED POLITICIAN STILL REELING FROM THE SLAP IN THE FACE VOTERS DELIVERED DEC 15 WHEN THEY SENT A MAJORITY OF ANTIYELTSIN DELEGATES TO THE STATE DUMA PARLIAMENT'S LOWER HOUSE MOREOVER HIS KEY REFORM SUCCESS THE MASS TRANSFER OF STATE PROPERTY TO PRIVATE HANDS HAS BEEN TARNISHED BY ABUSES AND ALLEGED CORRUPTION AMONG FORMER COMMUNIST FACTORY BOSSES INCLUDING THE HEADS OF THIS CITY'S GORKY AUTOMOBILE PLANT EUROPE'S BIGGEST CAR FACTORY MR YELTSIN 62 WHOSE HEALTH IS THE SOURCE OF ENDLESS CONJECTURE HAS SEEMED FATIGUED AND AT TIMES OUT OF TOUCH HIS SPACINESS COST HIM DEARLY LAST MONTH WHEN THE DUMA VOTED TO GIVE AMNESTY TO THOSE JAILED FOR INCITING VIOLENT ANTIGOVERNMENT PROTESTS LAST OCTOBER MS YAROSHINSKAYA 41 A FORMER DISSIDENT JOURNALIST OBSERVES THE EXECUTIVE BRANCH'S DISARRAY FROM THE INSIDE AS THE AMNESTY ISSUE WORKED ITS WAY THROUGH THE DUMA SHE TRIED URGENTLY TO PHONE CHIEF OF STAFF SERGEI FILATOV TO PROD MR YELTSIN TO TRY TO BLOCK THE MEASURE MR FILATOV COULDN'T BE BOTHERED MR YELTSIN SEEMED COMPLETELY UNPREPARED A FEW DAYS LATER WHEN HIS MAJOR FOES FORMER VICE PRESIDENT ALEXANDER RUTSKOI AND THE FORMER PARLIAMENT CHAIRMAN RUSLAN KHASBULATOV SUDDENLY APPEARED ON TELEVISION FREE AFTER FOUR MONTHS IN PRISON IN SYMBOLIC TERMS AT LEAST MR YELTSIN'S FOES HAD DELIVERED A MIGHTY BLOW AT THAT MOMENT YELTSIN BECAME A MUCH FEEBLER FIGURE SAYS MS YAROSHINSKAYA WORSE PERHAPS HE HAS SINCE OFFERED AN OLIVE BRANCH TO HIS RIVALS IN THE FORM OF A FORMAL POLITICAL PEACE TREATY WHILE NOBLE IN DESIGN THE OFFER IS SEEN BY MANY AS AN INVITATION TO CONFLICT A SIGN THAT THE PRESIDENT REALIZES HIS OWN WEAKNESS WHEN MR YELTSIN ABOLISHED PARLIAMENT FIVE MONTHS AGO THE JUSTIFYING MANTRA WAS RUSSIANS RESPECT ONLY STRENGTH WHILE MR YELTSIN PONDERS HIS NEXT MOVES MOSCOW IS ABUZZ OVER WILD REPORTS OF PENDING UPHEAVAL RUMORS PERHAPS DISSEMINATED BY MR YELTSIN'S OPPONENTS SUGGEST THAT THE PRESIDENT'S HEALTH IS DETERIORATING HE IS KNOWN TO HAVE A BAD BACK AND IS RUMORED TO DRINK TO EXCESS SOMETIMES MOST ALARMING AN UNSIGNED ARTICLE IN THE LATEST EDITION OF THE WEEKLY OBSHCHAYA GAZETA DETAILS AN ALLEGED ANTIYELTSIN COUP PLOT WHILE WIDELY DISCREDITED THE REPORT NONETHELESS HAS HEIGHTENED THE SENSE THAT MR YELTSIN IS SLIPPING AND NO ONE CAN SAY FOR SURE ANY LONGER WHERE THE MILITARY'S LOYALTY ULTIMATELY LIES OBVIOUSLY IT IS DANGEROUS TO COUNT ANYONE OUT IN THE FLUID WORLD OF RUSSIAN POLITICS MR YELTSIN HAS BOUNCED BACK FROM EARLIER PERIODS OF APPARENT WEAKNESS AND HE CONTINUES TO PLAY ACTIVE ROLES IN SETTING POLICY FOR RUSSIA'S REGIONS AND IN FOREIGN AFFAIRS MOST NOTABLY THROUGH HIS RECENT PEACE INITIATIVE FOR BOSNIA ANATOLY CHUBAIS A DEPUTY PRIME MINISTER IN CHARGE OF SELLING OFF STATEOWNED ENTERPRISES RISES TO THE PRESIDENT'S DEFENSE JUST BECAUSE YELTSIN ISN'T ON TV EVERY DAY DOESN'T MEAN HE'S WEAKER SAYS MR CHUBAIS 38 WHO IS CONSIDERED THE LAST TRUE RADICAL REFORMER IN THE CABINET YELTSIN'S TASK NOW IS TO RESPOND TO ANY ILLEGAL ACTIVITIES' OF HIS POLITICAL ENEMIES HE ADDS I THINK HE'S READY FOR THIS BUT MR YELTSIN CLEARLY IS A SHADOW OF THE MAN WHO IN 1991 STOOD ON A TANK IN MOSCOW AND NEARLY SINGLEHANDEDLY DEFEATED THAT YEAR'S COUP ATTEMPT AGAINST MIKHAIL GORBACHEV THAT WEAKNESS HAS MADE THE EVOLUTION OF MR CHERNOMYRDIN WHO IS 55 CRITICALLY NECESSARY IT ALSO MAKES THE PRIME MINISTER PERHAPS THE LAST HOPE FOR PUSHING FORWARD THE FREEMARKET REFORM AGENDA OF MR YELTSIN ONCE MR CHERNOMYRDIN WOULD HAVE SEEMED OUT OF PLACE IN NIZHNY NOVGOROD THE CRUCIBLE OF RUSSIA'S ECONOMIC REFORMS BUT ON A RECENT TOUR OF THE PROVINCE WITH ITS GOVERNOR THE JOWLY FORMER GASINDUSTRY BOSS WAS ACTING BORNAGAIN MR CHERNOMYRDIN TOLD FACTORY BOSSES TO STOP EXPECTING STATE CREDITS AND SAID RUSSIA WOULD ADOPT A CONTROVERSIAL LOCAL EXPERIMENT AIMED AT BREAKING UP THE COUNTRY'S 27000 COLLECTIVE FARMS CHERNOMYRDIN IS NO LESS A REFORMER THAN YEGOR GAIDAR CROWED THE PROVINCE'S GOVERNOR BORIS NEMTSOV GIVING AN EXAGGERATED BOOST TO THE PRIME MINISTER WHO JUST LAST MONTH HAD DECLARED AN END TO RUSSIA'S MARKET ROMANTICISM MR YELTSIN'S SUDDEN DECISION MARCH 14 TO TAKE A TWOWEEK REST IN THE BLACK SEA RESORT OF SOCHI HAS PROMPTED FURTHER SPECULATION ABOUT HIS PHYSICAL AND POLITICAL HEALTH EYEBROWS WERE RAISED EVEN MORE WHEN MR CHERNOMYRDIN UNEXPECTEDLY FLEW TO THE RESORT ON MONDAY CANCELING IMPORTANT MEETINGS IN MOSCOW TO DISCUSS PRESSING POLITICAL ISSUES WITH MR YELTSIN THE RUSSIAN MEDIA ARE DRAWING PARALLELS TO MR GORBACHEV'S ILLFATED TRIP TO THE CRIMEA IN AUGUST 1991 DURING WHICH OPPONENTS LAUNCHED THE COUP ATTEMPT THE NEXT CRITICAL SHOWDOWN PROBABLY WON'T COME DURING THE PRESIDENT'S HOLIDAY BUT IT COULD TAKE PLACE BY THE END OF THE YEAR THE ONCEFRACTIOUS OPPOSITION FORCES ARE MELDING IN WHAT IS LIKELY TO BE A POWERFUL ANTIYELTSIN COALITION CONSIDER THE DRAMATIC MEETING IN MOSCOW THIS MONTH AT PRAVDA NEWSPAPER'S HOUSE OF CULTURE FOR THE FIRST TIME SINCE THE PARLIAMENTARY WHITE HOUSE WAS STORMED FIVE MONTHS EARLIER RUSSIA'S HARDLINE OPPOSITION CAME TOGETHER A SERIES OF SPEAKERS STRODE TO THE PLATFORM TO DELIVER SHRILL ATTACKS AGAINST THE PRESIDENT MANY HAD JUST BEEN RELEASED FROM PRISON INCLUDING THE LEADERS OF THE ARMED ATTACK OCT 3 ON THE OSTANKINO TELEVISION TOWER THAT NEARLY PRECIPITATED CIVIL WAR THE STANDINGROOMONLY CROWD OF 1000 GAVE THEM THE LOUDEST OVATIONS BUT THE ULTIMATE SIGNIFICANCE OF THE GATHERING WASN'T THE PRESENCE OF THE VIOLENT RADICALS BUT THAT OF THE ELECTED OPPOSITION LEADERS LIKE COMMUNIST PARTY BOSS GENNADY ZYUGANOV AND ULTRANATIONALIST VLADIMIR ZHIRINOVSKY THOUGH TORN BY CONFLICTING AMBITIONS AND GOALS THEY PROCLAIMED A COMMON AIM TO FORCE EARLY PRESIDENTIAL ELECTIONS THIS YEAR A FULL TWO YEARS BEFORE MR YELTSIN'S TERM EXPIRES THE LOOSE ALLIANCE BECAME FORMAL LAST WEEK WITH THE CREATION OF ACCORD FOR RUSSIA A BLOC OF CONSERVATIVES AND NATIONALISTS BENT ON REVERSING THE COURSE OF REFORM IT ALREADY CONTROLS A MAJORITY OF DUMA SEATS WE WANT EARLY PRESIDENTIAL ELECTIONS WITHOUT YELTSIN DECLARES MR ZYUGANOV AN AMBITIOUS MAN WHO IS PLANNING TO RESTART COMMUNIST PROPAGANDA CAMPAIGNS INSIDE RUSSIA'S WORKPLACES AS THE TWO SIDES JOCKEY FOR POSITION THE ECONOMY CONTINUES TO SLIDE INDUSTRIAL OUTPUT IN JANUARY FELL 21 FROM ITS ALREADYDEPRESSED YEAREARLIER LEVEL MORE AND MORE FACTORIES ARE LAYING OFF WORKERS OR SHUTTING DOWN FOR LONG STRETCHES TALK OF NATIONAL STRIKES ALSO THREATENS THE PRESIDENT'S POWER WHILE CONSTITUTIONALLY MR YELTSIN COULD PROBABLY DEFLECT CALLS FOR EARLY ELECTIONS HE WOULD BE HARD PRESSED TO DO SO IF HUNDREDS OF THOUSANDS OF WORKERS WERE TO HIT THE STREETS CALLING FOR HIS OUSTER AS MR YELTSIN GETS SHAKIER MR CHERNOMYRDIN IS BUILDING UP HIS OWN COMMAND STRUCTURE THE PREMIER'S APPARAT HOUSED IN THE SPOTLESSLY REFURBISHED WHITE HOUSE AMOUNTS TO A VIRTUAL SHADOW GOVERNMENT UNDER HIS DIRECT COMMAND THE APPARAT CONSISTS OF 750 EXPERTS INCLUDING 200 ECONOMISTS PLUS A STAFF OF 500 SECRETARIES COMPUTER OPERATORS AND OTHER TECHNICALSUPPORT WORKERS THE APPARAT CHIEF 58YEAROLD VLADIMIR KVASOV IS HIMSELF ONE OF THE MOST POWERFUL PEOPLE IN RUSSIA EVERY GOVERNMENT LAW AND DECREE IS SHAPED AND ULTIMATELY SIGNED BY MR KVASOV AND HIS TEAM ALL CABINET MINISTERS AND EVEN RUSSIA'S THREE DEPUTY PRIME MINISTERS REPORT TO HIM ONLY MR KVASOV HIMSELF REPORTS DIRECTLY TO MR CHERNOMYRDIN MR KVASOV A FORMER SPECIALIST IN UNDERGROUND GAS STORAGE WHO KEEPS A VERY LOW PROFILE IS ADMIRED FOR HIS BUREAUCRATIC EXPERTISE THAT CONTRASTS WITH THE BUMBLING REPUTATION OF MR YELTSIN'S OWN STAFF LED BY THE SECRETIVE VIKTOR ILYUSHIN A FORMER COMMUNIST PARTY OFFICIAL FROM THE PRESIDENT'S HOME PROVINCE OF SVERDLOVSK IN TERMS OF ECONOMIC PLANNING WE EXCEED EVEN THE OLD GOSPLAN SAYS MR KVASOV REFERRING TO THE OLD STATE PLANNING COMMITTEE RESPONSIBLE FOR ALL THE FIVEYEAR PLANS OF YORE MR KVASOV A NEAT BESPECTACLED MAN PULLS OUT A THICK FOLDER OF NEWLY DRAFTED LAWS READY FOR PRESENTATION TO THE DUMA THE PROBLEM IS IMPLEMENTATION THESE DAYS ISN'T WHAT IT USED TO BE WITH REFORM ON THE ROPES THE ONLY CLEAR BENEFICIARIES ARE RUSSIA'S NEW ELITE THE MEN WHO RULE THE FACTORIES INSTITUTES AND OTHER ORGANS OF POWER FOR THE MOST PART THEY WERE THE OLD SOVIET ELITE AS WELL AND THEY KNOW HOW TO PROFIT FROM THE SYSTEM GORKY AUTOMOBILE PLANT KNOWN BY ITS RUSSIAN ACRONYM GAZ IS A CITY UNTO ITSELF IN NIZHNY NOVGOROD SOME 500 MILES EAST OF MOSCOW THE FACTORY EMPLOYS 109000 PEOPLE ALONG A SPRAWLING SERIES OF PRODUCTION LINES AND PROVIDES FOR THEIR NEEDS FROM MEDICAL CARE TO KINDERGARTENS WHEN RUSSIA BEGAN SELLING OFF STATE FACTORIES IN 1992 GAZ'S POWERFUL DIRECTORS BLOCKED THEM LATE LAST YEAR HOWEVER THEY SUDDENLY TOOK AN ACTIVE INTEREST IN THE PROCESS AND MOVED QUICKLY WITH SELLOFF PLANS AS IT TURNED OUT THE DIRECTORS TOOK A LARGE STATE CREDIT EARMARKED FOR EXPANSION AND USED IT TO BUY 46 BILLION RUBLES 27 MILLION IN THE FACTORY'S SHARES ON BEHALF OF THE COMPANY BUT FOR THEMSELVES TO CONTROL MOSCOW PROSECUTORS CHARGE BY BUYING A CONTROLLING STAKE THEY TRIED TO PRESERVE THEIR JOBS AND KEEP THE OLD SOCIALISTIC WAYS OF MANAGEMENT MOSCOW IS THREATENING LEGAL ACTION A LINEUP OF 12 SOMBER GAZ OFFICIALS GREETS A VISITING CORRESPONDENT AT THE FACTORY'S EXECUTIVE MEETING ROOM BEHIND THEM STAND SEVERAL LARGE RED BANNERS COMMEMORATING THE FACTORY'S ACHIEVEMENTS BACK IN SOVIET TIMES WHEN MOST OF THESE MEN WERE HIRED ACCORDING TO THE DIRECTORS THE SHARE PURCHASES WERE MADE LEGALLY WITH AFTERTAX PROFITS THEY SAY THE WHOLE AFFAIR IS JUST A MISUNDERSTANDING WE DON'T UNDERSTAND WHY THE AUTHORITIES WANT TO WASH THE DIRTY LINEN IN PUBLIC SAYS YURI KULYOMIN THE PROMANAGEMENT CHIEF OF THE FACTORY'S TRADE UNION FOR NOW ALL OF RUSSIA IS WATCHING TO SEE WHETHER MOSCOW HAS THE STOMACH TO TAKE ON THE LEADERS OF GAZ OR ANY OF RUSSIA'S OTHER RED ENTERPRISE DIRECTORS WHO HAVE BEEN ABLE TO THWART REFORM WHILE ENJOYING THE SUPPORT OF THEIR HUGE WORK FORCES THE GAZ CASE UNFORTUNATELY IS TYPICAL SAYS MR CHUBAIS THE PRIVATIZATION CZAR TO REGAIN THE POLITICAL INITIATIVE THE GOVERNMENT NEEDS SOME GOOD ECONOMIC NEWS BUT THAT ISN'T LIKELY TO COME SOON TRUE AT A RATE OF 99 A MONTH INFLATION IS AT ITS LOWEST LEVEL SINCE 1991 BUT THE PRESSURE IS ON MR CHERNOMYRDIN TO FIND WAYS QUICKLY TO REVAMP PRODUCTION SO FAR HE HAS RESISTED CALLS FOR LARGESCALE INFLATIONARY BAILOUTS OR WAGEANDPRICE FREEZES BUT MANY LEGISLATORS ALREADY ARE CALLING FOR MOSCOW TO DECLARE A STATE OF ECONOMIC EMERGENCY IF THINGS DON'T IMPROVE MANY EXPECT TROUBLE PROBABLY IN THE AUTUMN UNTIL THEN AS THE WARRING SIDES BUILD UP THEIR FORCES TAKING THE OBLIGATORY SUMMERTIME BREAK FROM CUTTHROAT POLITICS RUSSIA WILL CONTINUE TO DRIFT MS YAROSHINSKAYA THE PRESIDENTIAL ADVISER BELIEVES THE MILITARY WILL BE TEMPTED TO STEP IN AS THINGS DETERIORATE BUT FIRST IT MUST FIND A LEADER IT CAN RALLY AROUND ONE OBVIOUS CANDIDATE MR RUTSKOI THE FORMER AFGHANWAR HERO WHO IS NOW SITTING AT HIS DACHA ENJOYING HIS FREEDOM WRITING HIS MEMOIRS AND WAITING FOR THE POLITICAL WINDS TO SHIFT HIS WAY 9403230018 940323 GOLF CHANNEL FACES NEW HAZARDS AS CABLE CLIMATE SHIFTS BY ANITA SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL STARTING A CABLETV NETWORK MAY TURN OUT TO BE THE TOUGHEST GAME THAT GOLF PRO ARNOLD PALMER HAS EVER PLAYED A LITTLE MORE THAN THREE YEARS AGO MR PALMER THE FOURTIME MASTERS TOURNAMENT CHAMPION TEAMED UP WITH JOSEPH E GIBBS A BIRMINGHAM ALA BUSINESSMAN TO CREATE THE GOLF CHANNEL BACK THEN MANY CABLE SYSTEMS HAD AMPLE ROOM FOR NEW NETWORKS AND INDUSTRY EXPERTS WERE BEGINNING TO FORECAST A 500CHANNEL TV UNIVERSE NICHE CHANNELS FEATURING EVERYTHING FROM MAJOR LEAGUE BASEBALL TO GAME SHOWS TO THE MILITARY WERE TAKING SHAPE AND THE IDEA FOR A GOLF NETWORK LOOKED LIKE A HOLE IN ONE NOW THE GOLF CHANNEL IS ADJUSTING TO A VASTLY DIFFERENT BUSINESS CLIMATE CABLEINDUSTRY EXECUTIVES AND GOLF CHANNEL INVESTORS SAY A STARTUP NETWORK HAS LITTLE CHANCE OF SUCCESS UNLESS IT RAISES BIG MONEY AND ALIGNS ITSELF WITH MAJOR PLAYERS IN THE COMMUNICATIONS BUSINESS EVEN THEN THE COURSE IS LINED WITH BUNKERS START WITH THE COMPETITION WHILE IT HAS ATTRACTED SOME FORMIDABLE PARTNERS INCLUDING INTERNATIONAL MANAGEMENT GROUP A SPORTSMARKETING CONCERN BASED IN CLEVELAND MR GIBBS AND FRIENDS ARE STILL DWARFED BY THE RESOURCES OF THE BROADCAST NETWORKS AND CABLE POWERS LIKE ESPN A DIVISION OF CAPITAL CITIES/ABC INC ALL THESE RIVALS HAVE INCREASED THEIR GOLF PROGRAMMING IN RECENT SEASONS ESPN ALONE PLANS TO SHOW 50 EVENTS THIS YEAR I DON'T KNOW THAT THERE'S NECESSARILY A NEED FOR NICHE NETWORKS PER SE SAYS LOREN MATTHEWS SENIOR VICE PRESIDENT OF PROGRAMMING AT ESPN THERE IS A CERTAIN HARDCORE VIEWERSHIP THAT CAN'T GET ENOUGH MR MATTHEWS SAYS BUT ARE THERE ENOUGH OF THEM TO CREATE A PROFITABLE BUSINESS THE ANSWER ACCORDING TO MR GIBBS AND HIS MARKETING STUDIES IS A CONFIDENT YES THE GOLF CHANNEL WHICH RECENTLY POSTPONED ITS LAUNCH DATE FROM THIS JULY TO NEXT JANUARY PLANS TO GENERATE AS MUCH AS TWOTHIRDS OF ITS REVENUE BY CHARGING EACH SUBSCRIBER 495 A MONTH ABOUT HALF OF THAT WOULD BE SHARED WITH CABLE OPERATORS MR GIBBS FIGURES 57 OF THE NATION'S 12 MILLION HARDCORE GOLFERS THOSE WHO PLAY EIGHT TIMES OR MORE EACH YEAR WOULD BE WILLING TO PAY THE MONTHLY FEE THE GOLF CHANNEL HE CALCULATES COULD BREAK EVEN WITH JUST 15 MILLION TO TWO MILLION SUBSCRIBERSA FIGURE THAT COULD BE REACHED ACCORDING TO HIS BUSINESS PLAN IN ABOUT TWO YEARS THOSE SAME POTENTIAL SUBSCRIBERS THOUGH MAY SOON HAVE DOZENS OF TELEVISED OFFERINGS COMPETING FOR THEIR 495 CURRENTLY MORE THAN 75 CHANNELS ARE BEING READIED FOR ROLLOUTS INCLUDING MANY WITH WELLCONNECTED BACKERS THE CHIEF EXECUTIVE OF WALMART STORES INC FOR INSTANCE IS ONE OF THE MAIN INVESTORS IN AMERICANA TELEVISION NETWORK A MUSIC CHANNEL ORIGINATING IN BRANSON MO WHAT'S MORE THE GOLF CHANNEL AND OTHER NEW NETWORKS ARE FINDING THAT CABLE CAPACITY IS MORE LIMITED THAN THEY HAD EXPECTED LAST FALL IN RESPONSE TO FEDERAL REGULATIONS THAT LET CABLE OPERATORS BASE THEIR RATES ON THE NUMBER OF CHANNELS OFFERED MOST CABLE SYSTEMS RUSHED TO FILL ALL THEIR AVAILABLE SLOTS MEANWHILE DELIVERING 500 CHANNELS TO HOMES NATIONWIDE WILL REQUIRE BIG PLAYERS INVESTING A LOT OF TIME AND MONEY ON NEW TECHNOLOGY SAYS ALASTAIR JOHNSTON A SENIOR VICE PRESIDENT AT INTERNATIONAL MANAGEMENT GROUP WHO ADDS THAT THE COLLAPSE OF BELL ATLANTIC CORP'S PLANNED MERGER WITH TELECOMMUNICATIONS INC IS LIKELY TO SLOW THAT KIND OF INVESTMENT ONE AREA WHERE MR GIBBS NOW PRESIDENT AND CHIEF EXECUTIVE OF THE GOLF CHANNEL HAS ENCOUNTERED FEWER PROBLEMS IS PROGRAMMING INTERNATIONAL MANAGEMENT GROUP HELPED THE NETWORK LOCK UP NEARLY 100 EXCLUSIVE TOURNAMENT CONTRACTS INCLUDING EVENTS FROM THE MAJOR GOLF TOURS WE'VE BASICALLY TIED UP THE WORLD MR GIBBS SAYS SESSIONS WITH POTENTIAL INVESTORS MEANWHILE HAVE YIELDED A PLETHORA OF POSSIBLE PROGRAMS INCLUDING INTERNATIONAL AND DOMESTIC TOURNAMENTS WHICH WOULD BE TELEVISED A FEW HOURS EACH DAY GOLFING NEWS INSTRUCTION AND INTERVIEWS AND A HOMESHOPPING SEGMENT WHICH WOULD MARKET EQUIPMENT CLOTHING AND TRAVEL PACKAGES THEN THERE'S THE ESOTERIC SHOWS ON GOLFING ETHICS FOR INSTANCE IN WHICH BEGINNING PLAYERS WOULD BE COUNSELED NOT TO COUGH WHEN A GUY IS ABOUT TO MAKE A PUTT SAYS MR GIBBS IT WON'T BE ANY PROBLEM FILLING UP 24 HOURS HE SAYS BUT IT WILL BE EXPENSIVE THE AMBITIOUS IDEAS FOR PROGRAMMING MEAN THAT MR GIBBS AND HIS PARTNERS NEED TO RAISE ABOUT 60 MILLION TO START THE CHANNEL A HEFTY SUM IN AN INDUSTRY WHERE A STARTUP LIKE THE CARTOON NETWORK PART OF TURNER BROADCASTING SYSTEM INC COSTS ABOUT 20 MILLION ANNUAL PROGRAMMING COSTS ARE EXPECTED TO HOVER AROUND 30 MILLION STOCKPILING CASH IS CRUCIAL SAYS DAVID BARRY AN INVESTOR IN CABLE SYSTEMS AND ONE OF THE ORIGINAL BACKERS OF THE GOLF CHANNEL YOU NEED TO GENERATE APLUS QUALITY FROM THE GETGO HE SAYS ESPECIALLY IF YOU PLAN TO CHARGE FOR THE SERVICE AFTER TALKING WITH DOZENS OF FINANCIAL INSTITUTIONS AND CORPORATIONS IN THE PAST NINE MONTHS MR GIBBS SAYS HE NOW HAS VERBAL COMMITMENTS FOR THE 60 MILLION THE CHANNEL WILL GET SIGNED PLEDGES ONCE IT BRINGS IN FIRM COMMITMENTS FROM THREE MAJOR CABLE OPERATORS WITH WHOM IT IS DEEP IN TALKS AS PARTNERS SAYS JOHN WALLER OF WALLER CAPITAL CORP A CABLEINVESTMENT COMPANY IN NEW YORK MR GIBBS HIMSELF AN OWNER OF SMALL CABLE SYSTEMS AROUND THE COUNTRY EXPECTS A DEAL TO BE ANNOUNCED WITHIN 30 DAYS BARRING ANY LASTMINUTE GLITCHES NOT EVERYONE LIKES THE IDEA ONE BIG CABLE OPERATOR THAT PASSED UP A CHANCE TO INVEST IN THE GOLF CHANNEL WAS COX CABLE A UNIT OF COX ENTERPRISES INC IN ATLANTA AND THE SIXTHLARGEST US CABLE OPERATOR COX CABLE'S PRESIDENT JAMES O ROBBINS DESCRIBES HIMSELF AS A FERVENT GOLFER WHO WOULD SUBSCRIBE TO THE CHANNEL BUT HE SAYS THE COMBINATION OF REGULATORY UNCERTAINTY PLUS THE DIFFICULTY WITH GETTING WIDESPREAD DISTRIBUTION QUICKLY LEFT US COOL TO MAKING AN INVESTMENT OF COURSE UNCERTAINTY AND COOL RESPONSES ARE NOW PAR FOR THE COURSE AT THE GOLF CHANNEL STARTING A NEW NETWORK SAYS MR BARRY THE INVESTOR IS CERTAINLY NOT FOR THE FAINT OF HEART BUT HE ADDS IT'S ONE OF THE FEW OPPORTUNITIES AROUND TO GIVE YOURSELF A SHOT AT HITTING A HOME RUN 9403230017 940323 COMMODITIES SILVER PRICES LEAD BROAD PRECIOUS METALS RALLY CONTINUING A SURGE BEGUN IN MIDSEPTEMBER BY JEFFREY TAYLOR AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL SILVER FUTURES PRICES LED A BROADBASED RALLY AS BIG INVESTORS POURED MONEY INTO PRECIOUSMETALS MARKETS AT NEW YORK'S COMMODITY EXCHANGE SILVER FOR MAY DELIVERY WAS UP 173 CENTS TO 5615 AN OUNCE WHILE THE ACTIVELY TRADED APRIL GOLD FUTURES CONTRACT ROSE 340 TO 38970 AN OUNCE AT THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY CLIMBED 290 TO 40590 AN OUNCE SINCE MIDSEPTEMBER THE PRICE OF SILVER HAS SURGED 40 WE'VE SEEN A LOT OF HEDGEFUND BUSINESS THE SPECULATIVE MANAGED MONEY BUSINESS SAID FRED DEMLER METALS ECONOMIST FOR ED & F MAN SILVER IS NOT QUITE AS LIQUID AS GOLD SO IT'S EASIER FOR THEM TO GET THE MARKET TO MOVE ALSO THERE'S NO CENTRAL BANK SELLING IN SILVER TO DEPRESS PRICES AMONG THE BIG INVESTORS MENTIONED AS PARTICIPANTS IN THE SILVER MARKET LATELY ARE GEORGE SOROS'S QUANTUM FUND SAID TED ARNOLD LONDONBASED METALS ANALYST AT MERRILL LYNCH FUNDS APPEAR TO HAVE ALREADY INVESTED 1 BILLION IN THE SILVER MARKET BY TAKING DELIVERY OF METAL AND STORING IT IN DELAWARE WAREHOUSES MR ARNOLD SAID LONDON ZURICH AND NEW YORK DEALERS ARE REPORTING THAT LARGE BUYERS OF SILVER ENTERED THE MARKET AS BUYERS WEEKS OR MONTHS AGO WHEN THE PRICE WAS HOVERING BETWEEN 5 TO 520 AN OUNCE BUT THE DIRECTOR OF ONE LARGE LONDON BULLION HOUSE SAYS THAT 1 BILLION WORTH OF SILVER AT AVERAGE PRICES OF 5 AN OUNCE AMOUNTS TO 200 MILLION OUNCES A POSITION OF THAT SIZE THE DEALER SAID WOULD BE ALMOST AS BIG AS WHEN THE HUNT BROTHERS TRIED TO CORNER THE SILVER MARKET IN LATE 1980S THUS THE DEALER IS SKEPTICAL ABOUT THE REPORT MEANWHILE MR DEMLER SAID SILVER INVENTORIES HAVE BEEN DROPPING AT THE COMMODITY EXCHANGE YESTERDAY FOR INSTANCE COMEX STOCKS DROPPED 3 MILLION OUNCES TO 242 MILLION OUNCES HE SAID FUNDS ARE CONFIDENT ABOUT SILVER'S PRICE PROSPECTS BECAUSE OF ESTIMATES THAT PHYSICAL DEMAND EXCEEDED SUPPLIES BY 58 MILLION OUNCES LAST YEAR MR ARNOLD SAYS THEY ALSO NOTE THAT INDIA A NOTABLE CONSUMER OF SILVER OVER THE YEARS IMPORTED 90 MILLION OUNCES LAST YEAR YET THERE ARE STILL LARGE SILVER STOCKS HELD BY SILVER INVESTORS WHO BOUGHT AT HIGHER PRICES IN THE 1980S ACCORDING TO CRU INTERNATIONAL A LONDON CONSULTANCY EXCHANGE INVENTORIES IN NEW YORK CHICAGO AND TOKYO AMOUNT TO ABOUT 268 MILLION OUNCES WHILE SILVER INVENTORIES IN LONDON AND ZURICH COULD ALSO BE AROUND THOSE LEVELS IF THE PRICE OF THE PRECIOUS METAL SURGES INVESTORS WHO HAVE HELD SILVER FOR YEARS IN SWISS LONDON AND US VAULTS WOULD SELL SUBSTANTIAL QUANTITIES MR ARNOLD SAID WHICH COULD PROMPTLY PUSH PRICES DOWN AGAIN IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDE OIL AND PETROLEUM PRODUCT PRICES FINISHED MIXED IN CAUTIOUS TRADING AHEAD OF FRIDAY'S MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SOME MARKET PARTICIPANTS TOOK PROFITS IN THE CRUDE PITS AS THE APRIL CONTRACT WENT OFF THE BOARD LIGHT SWEET CRUDE FOR APRIL DELIVERY SETTLED AT 1520 DOWN 17 CENTS A BARREL ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL AND GASOLINE CONTRACTS ROSE HOWEVER AS TRADERS COVERED SOME SHORT POSITIONS SOME TRADERS SAID THAT WITH THE COMING OPEC MEETING FEW LARGE MARKET PLAYERS WOULD MAKE BIG MOVES IN THE ABSENCE OF NEWS MANY BELIEVE OPEC WON'T DO ANYTHING SUBSTANTIVE TO CURB THE CURRENT OVERSUPPLY OF OIL GRAINS AND SOYBEANS GRAIN FUTURES PRICES CONTINUED TO FALL AS TRADERS TOOK PROFITS FROM EARLIER PRICE RUNUPS AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR JULY DELIVERY WERE DOWN 275 CENTS TO 68675 A BUSHEL WHILE THE JULY CORN FUTURES CONTRACT ALSO FELL 275 CENTS TO 28625 A BUSHEL EXPECTATIONS OF A RECORD BRAZILIAN SOYBEAN CROP CONTINUE TO TUG AT FUTURES PRICES DESPITE LINGERING SHORTAGES OF HIGHQUALITY GRAIN IN THE US FOR THE NEXT FEW WEEKS TRADERS WILL WATCH THE PROGRESS OF EARLY GRAIN PLANTING IN SOUTHERN US GROWING REGIONS 9403230016 940323 TECHNOLOGY & HEALTH MICROSOFT AT&T HELD ALLIANCE TALKS BUT NO ACCORD SO FAR MICROSOFT CORP AND AMERICAN TELEPHONE & TELEGRAPH CO HAVE BEEN IN TALKS FOR SEVERAL MONTHS ABOUT A BROAD TECHNICAL ALLIANCE BUT HAVEN'T REACHED AN AGREEMENT EXECUTIVES FROM THE TWO COMPANIES SAID THE COMPANIES DISCUSSED WAYS AT&T MIGHT USE MICROSOFT SOFTWARE INCLUDING OPERATING SYSTEMS THAT WOULD CONTROL TV SETTOP DECODER BOXES FOR INTERACTIVE TELEVISION ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANIES' PLANS WHICH WERE FIRST REPORTED BY INFOWORLD A WEEKLY TRADE PUBLICATION AT&T AND MICROSOFT EXECUTIVES WOULD NOT DISCUSS SPECIFIC TOPICS THEY SAID THE TALKS ARE CONTINUING ALTHOUGH NO MAJOR DEAL IS IN THE OFFING SOON STEVE BALMER A MICROSOFT VICE PRESIDENT WOULD NOT COMMENT ON WHETHER MICROSOFT HAD ASKED AT&T TO EXCLUSIVELY ADOPT HIS COMPANY'S SOFTWARE FOR FUTURE NETWORK APPLICATIONS THE BIG REDMOND WASH SOFTWARE SUPPLIER HAS FAILED TO LINE UP SUPPORT FOR A MULTICOMPANY ALLIANCE THAT WOULD USE ITS SOFTWARE IN SETTING STANDARDS IN INTERACTIVE TELEVISION IN DISCUSSIONS THAT INCLUDED NEW YORKBASED AT&T INDUSTRY EXECUTIVES SAID SEPARATELY MICROSOFT ANNOUNCED THREE AGREEMENTS TO LICENSE SOURCE CODE FOR ITS MICROSOFT WINDOWS OPERATING SYSTEM TO INDEPENDENT SOFTWARE VENDORS MICROSOFT DOESN'T TYPICALLY LICENSE SUCH CODE WHICH ALLOWS OTHER COMPANIES TO MAKE MODIFICATIONS OF MICROSOFT'S TECHNOLOGY FOR USE IN THEIR OWN PRODUCTS THE AGREEMENTS WITH LOCUS COMPUTING CORP MAINSOFT CORP AND INSIGNIA SOLUTIONS INC WILL MAKE IT POSSIBLE FOR COMPANIES TO WRITE ONE VERSION OF WINDOWS APPLICATION PROGRAMS AND HAVE THEM ALSO RUN ON VERSIONS OF THE UNIX OPERATING SYSTEM FROM COMPANIES THAT INCLUDE INTERNATIONAL BUSINESS MACHINES CORP SUN MICROSYSTEMS INC AND HEWLETTPACKARD CO MICROSOFT SAID 9403230015 940323 INTERNATIONAL POLITICAL TROUBLES CONSUMER PESSIMISM DRIVE JAPAN TOWARD JOYLESS RECOVERY' BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S ECONOMY CONTRACTED AT A 22 ANNUAL PACE IN THE LATEST QUARTER A BETTERTHANEXPECTED PERFORMANCE THAT ECONOMISTS SAY MAY PROMPT THEM TO MODERATE THEIR BEARISH FORECASTS FOR THIS YEAR BUT POLITICAL INSTABILITY BUSINESS RETRENCHMENT AND CONSUMER PESSIMISM POSE FORMIDABLE OBSTACLES TO A FULL RECOVERY ANALYSTS ADD THE WORST IS OVER SAID JESPER KOLL ECONOMIST AT SG WARBURG SECURITIES JAPAN INC STILL HE WARNED JAPAN IS HEADED FOR A JOYLESS RECOVERY NOBODY NEITHER CONSUMERS NOR CORPORATIONS IS GOING TO FEEL GOOD ABOUT IT MANY ANALYSTS HAD EXPECTED A SHARPER DROP IN THE GROSS DOMESTIC PRODUCT IN THE OCTOBERDECEMBER PERIOD A RISE IN CONSUMER SPENDING PARTIALLY OFFSET STEEP DECLINES IN CORPORATE CAPITAL SPENDING AND IN EXPORTS SAID A SPOKESMAN FOR JAPAN'S ECONOMIC PLANNING AGENCY THUS OUTPUT SURPASSED CONSENSUS FORECASTS ONE OF WHICH HAD CALLED FOR A DECLINE OF 42 FOR THE FULL YEAR THE ECONOMY GREW JUST 01 THE WORST SHOWING SINCE A 06 CONTRACTION DURING THE OIL SHOCK OF 1974 SOME ANALYSTS SAID THE LATEST DATA WILL LEAD THEM TO BOOST THEIR PROJECTIONS FOR GROWTH SG WARBURG'S MR KOLL SAID THE QUARTER'S STRONG 11 RISE IN HOUSING STARTS FROM YEARAGO LEVELS BODES WELL FOR SALES OF CONSUMER DURABLE GOODS IN COMING MONTHS HE SAID HE'LL RAISE HIS GDP GROWTH FORECAST FOR CALENDAR 1994 BUT ONLY TO ABOUT 1 FROM 06 WHILE MOST ECONOMISTS EXPECT THE ECONOMY TO IMPROVE IN THE CURRENT QUARTER THEY'VE BEEN PROJECTING GROWTH OF LESS THAN 1 FOR THIS YEAR SOME COMPANIES EXPECT THE UPTICK IN CONSUMER SPENDING TO CONTINUE TOYOTA MOTOR CORP WILL RAISE ITS DAILY AUTOOUTPUT TARGET IN JAPAN BY ABOUT 1000 VEHICLES TO SOME 15000 IN THE MARCH TO MAY PERIOD TOYOTA EXPECTS A COMING REDUCTION IN THE AUTOSALES TAX TO BOOST SALES BUT IT ISN'T CALLING FOR AN END TO JAPAN'S AUTO SLUMP THERE ARE REPORTS CONSUMERS ARE COMING BACK TO DEALERS BUT OF COURSE IT DOESN'T SHOW IN THE FIGURES YET SAID A TOYOTA SPOKESMAN WE'RE NOT VERY OPTIMISTIC YET HURDLES TO GENUINE RECOVERY REMAIN CONSIDERABLE A STRONG YEN IS EXPECTED TO CONTINUE CRIMPING JAPANESE EXPORTS A LINCHPIN OF THE ECONOMY PRIVATE FORECASTERS EXPECT CORPORATE CAPITAL SPENDING WHICH ACCOUNTS FOR ABOUT 15 OF THE NATION'S ECONOMY TO SHRINK SOME 6 IN THE YEAR THAT STARTS APRIL 1 AND CORPORATIONS ARE LIKELY TO SUPPRESS HIRING AND WAGE INCREASES THIS YEAR AS THEY CONTINUE TO RESTRUCTURE THAT COULD REVERSE THE FOURTH QUARTER'S SURPRISING 3 ANNUALIZED SPURT IN CONSUMER SPENDING BUSINESSES ARE SKEPTICAL OF AN EARLY UPTURN ACCORDING TO A SURVEY OF 144 MAJOR FIRMS CONDUCTED EARLIER THIS MONTH BY KEIDANREN A BIGBUSINESS LOBBY 76 OF COMPANIES EXPECT THEIR EARNINGS TO STAY FLAT OR FALL IN THE YEAR THAT BEGINS APRIL 1 CONSUMERS ARE CAUTIOUS TOO A GOVERNMENT SURVEY PUBLISHED THIS WEEK SHOWS THAT A RECORD 45 OF JAPANESE SAY THEY'RE UNEASY ABOUT THE FUTURE ECONOMISTS SAY THE POSITIVE FOURTHQUARTER DATA COMBINED WITH WIDESPREAD EXPECTATIONS THAT THE ECONOMY WILL GROW IN THE CURRENT QUARTER GIVES THE BANK OF JAPAN FURTHER JUSTIFICATION FOR REFRAINING FROM CUTTING ITS OFFICIAL DISCOUNT RATE NOW AT A RECORD LOW OF 175 IT MAKES THE LIKELIHOOD OF A DISCOUNT RATE CUT SMALLER SAID SALOMON BROTHERS INC ECONOMIST ROBERT FELDMAN MANY BUSINESSMEN SOUGHT LOWER RATES AS A WAY OF BRINGING DOWN THEIR DEBTPAYMENT BURDENS AND MAKING CREDIT MORE AFFORDABLE FOR BUSINESSES WANTING TO EXPAND POLITICAL UNCERTAINTY IS ANOTHER FACTOR THREATENING JAPAN'S ECONOMIC WOES MY BIGGEST WORRY ABOUT THE ECONOMY IS POLITICAL INSTABILITY SAID HAJIME FUNADA FORMER CHIEF ECONOMIC PLANNER AND A LEGISLATOR IN JAPAN'S RULING COALITION IN AN INTERVIEW THE LATEST PROBLEM IS A DISPUTE OVER WHETHER PRIME MINISTER MORIHIRO HOSOKAWA ACTED IMPROPERLY IN ACCEPTING A LOAN OF 100 MILLION YEN 942000 MORE THAN 10 YEARS AGO FROM SAGAWA KYUBIN A SCANDALTAINTED TRUCKING COMPANY THE OPPOSITION LIBERAL DEMOCRATIC PARTY IS USING THE MATTER TO DELAY DELIBERATIONS ON NEXT FISCAL YEAR'S BUDGET YESTERDAY THE LDP AGREED TO PASS A KEY INCOMETAX CUT BY THE END OF THIS MONTH SO THAT CONSUMERS CAN GET THE MONEY IN THEIR JUNE PAYCHECKS AS PROMISED BUT THE PARTY IS EXPECTED TO HOLD THE FULLYEAR BUDGET HOSTAGE IN HOPES OF DAMAGING MR HOSOKAWA ONCE THE BUDGET PASSES JAPAN FACES ANOTHER BATTLE OVER A PLAN TO RAISE CONSUMPTION TAXES AS A WAY OF FINANCING A PERMANENT INCOMETAX CUT AN IDENTICAL CONTROVERSY NEARLY SPLIT THE RULING COALITION IN FEBRUARY POLITICAL BATTLES OF THE LAST SEVERAL MONTHS HAVE CHIPPED AWAY AT MR HOSOKAWA'S POPULARITY THE MAIN FORCE BOLSTERING HIS GOVERNMENT IN A POLL PUBLISHED LAST WEEK BY THE TBS TELEVISION NETWORK SUPPORT FOR MR HOSOKAWA'S CABINET FELL TO 45 FROM 70 IN SEPTEMBER SMELLING BLOOD THE OPPOSITION LIBERAL DEMOCRATS HAVE BEGUN OPENLY CALLING FOR HIS RESIGNATION MR HOSOKAWA'S POLITICAL PROBLEMS ALSO RAISE DOUBTS ABOUT JAPAN'S ABILITY TO PRESENT THE US WITH PROMISED MARKETOPENING MEASURES BY THE END OF THIS MONTH FAILURE TO DELIVER COULD TRIGGER A FAMILIAR CHAIN REACTION THE US RATCHETS UP ITS TRADE RHETORIC AGAINST JAPAN THE YEN'S VALUE RISES AGAINST THE DOLLAR ON MARKET EXPECTATIONS THAT THE US WILL SEEK A STRONGER YEN TO CUT JAPAN'S TRADE SURPLUS AND JAPANESE EXPORTERS SUFFER ANOTHER HIT TO THEIR SAGGING PROFITS TO BE SURE MR HOSOKAWA MAY SAIL THROUGH THESE BREWING STORMS HIS POPULARITY RATINGS ARE STILL FAR HIGHER THAN THOSE OF HIS PREDECESSORS MOREOVER JAPAN APPEARS TO BE MAKING PROGRESS ON AT LEAST SOME OF ITS MARKETOPENING MEASURES THIS WEEK THE AUTO INDUSTRY WILL PRESENT A PLAN THAT WILL PROBABLY INCLUDE STEPS TO WIDEN DEALERSHIP NETWORKS TO US CAR IMPORTS SAID HIROYUKI NAKAMURA MANAGER OF THE INTERNATIONAL DEPARTMENT OF THE JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION HE ALSO SUGGESTED THAT SOME AUTO MAKERS MAY SOON BEND TO A KEY US DEMAND THAT THEY PUBLISH NUMERICAL GOALS FOR BUYING USMADE AUTO PARTS 9403230014 940323 FED INCREASES INTEREST RATES DISCLOSES MOVE RISE IN BENCHMARK TO 3 1/2 ISN'T SEEN AS SURPRISE ECONOMY SHOWS VIGOR BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE POLICY MAKERS VOTED TO PUSH UP SHORTTERM INTEREST RATES FOR THE SECOND TIME IN AS MANY MONTHS AND ANALYSTS PREDICTED THAT THE FED IS LIKELY TO CONTINUE TO RAISE RATES IF THE ECONOMY MAINTAINS ITS MOMENTUM ALTHOUGH THE FED WASN'T EXPLICIT IN ITS UNUSUAL STATEMENT ANNOUNCING THE DECISION ITS OPEN MARKET COMMITTEE DECIDED TO INCREASE THE BENCHMARK FEDERALFUNDS INTEREST RATE BY 1/4 PERCENTAGE POINT TO 3 1/2 AFTER HOLDING RATES STEADY FOR ABOUT A YEAR AND A HALF THE FED RAISED THE FEDERALFUNDS RATE AT WHICH BANKS LEND TO EACH OTHER OVERNIGHT TO 3 1/4 FROM 3 ON FEB 4 WITH THE ECONOMY GAINING STRENGTH MOST ANALYSTS EXPECT THE FED TO INCREASE SHORTTERM RATES AT LEAST ANOTHER HALFPOINT BY YEAR END A FEW SAID THE NEXT MOVE COULD EVEN COME BEFORE THE OPEN MARKET COMMITTEE MEETS AGAIN ON MAY 17 BUT MOST DON'T EXPECT THAT TO HAPPEN WE HAD BEEN SAYING 1/4 PERCENTAGE POINT A QUARTER SAID DARWIN BECK WHO MONITORS THE FED FOR FIRST BOSTON CORP THEY'RE AT LEAST ON THAT TRACK OR FASTER NOW FOR YEARS THE FED HAS TELEGRAPHED ITS INTERESTRATE MOVES TO FINANCIAL MARKETS BUT REFUSED TO SAY ANYTHING IN PUBLIC UNDER PRESSURE FROM CONGRESS HOWEVER THE FED HAS APPARENTLY CHANGED ITS WAYS AT LEAST A LITTLE JUST AS IT DID IN FEBRUARY IT ISSUED A NEWS RELEASE DISCLOSING THE POLICY COMMITTEE'S DECISION AFTER THE FEB 4 MOVE THE FED'S FIRST INCREASE IN RATES SINCE 1989 THE BOND MARKET REACTED BY PUSHING UP LONGTERM INTEREST RATES BUT YESTERDAY'S MOVE WAS WIDELY ANTICIPATED IT WAS SOMETHING THE BOND MARKET WANTED AND IT GOT IT SO IT WAS PLEASED MR BECK SAID YIELDS ON 10YEAR TREASURY SECURITIES WERE QUOTED LATE YESTERDAY AT 642 STOCK PRICES WERE MIXED THE INCREASE IN THE FEDERALFUNDS RATE WILL TEND TO PUSH UP THE SHORTTERM RATES THAT BANKS AND MONEYMARKET FUNDS PAY TO SAVERS AS WELL AS THE RATES THAT BANKS CHARGE BORROWERS BUT IT ISN'T CLEAR WHETHER BANKS WILL RESPOND BY RAISING THE HIGHLY VISIBLE PRIME INTEREST RATE NOW AT 6 THE PRIME RATE IS USED FOR SUCH THINGS AS HOME EQUITY LOANS THE GAP BETWEEN THE FEDERALFUNDS RATE AND THE PRIME RATE IS 2 1/2 PERCENTAGE POINTS ABOUT A HALFPOINT NARROWER THAN IT HAD BEEN BUT STILL ABOUT A HALFPOINT WIDER THAN IT HAS BEEN HISTORICALLY ALTHOUGH LOAN DEMAND IS BEGINNING TO PICK UP COMPETITION FOR BUSINESS REMAINS FIERCE BANKS MIGHT DECIDE TO TRY TO COMPETE ON PRICING UNTIL WE HAVE A MORE ROBUST DEMAND FOR BUSINESS LOANS SAID ECONOMIST JOHN LONSKI OF MOODY'S INVESTORS SERVICE INC THERE'S A GOOD CHANCE BANKS MAY NOT IMMEDIATELY HIKE THE PRIME BUT OTHER ECONOMISTS DIFFERED THE FIRST INCREASE THAT THE FED DID WAS FREE SAID JAMES ANNABLE CHIEF ECONOMIST AT FIRST CHICAGO CORP THE SECOND ONE MOST LIKELY WON'T BE BANKS WILL FOLLOW WITH A HALFPOINT INCREASE THE FED MOVE CAME FOUR DAYS AFTER FED CHAIRMAN ALAN GREENSPAN MET AT THE WHITE HOUSE WITH PRESIDENT CLINTON TO DISCUSS THE ECONOMY A MEETING THAT DREW AN ENORMOUS AMOUNT OF UNWANTED ATTENTION AND SPECULATION ON WALL STREET WHEN IT WAS DISCLOSED THE CLINTON ADMINISTRATION TOOK YESTERDAY'S ANNOUNCEMENT CALMLY EMPHASIZING THE FED'S INDEPENDENCE AND THE INDICATIONS THAT THE ECONOMY IS GETTING STRONGER BY THE DAY IT'S THEIR DECISION AS TO HOW TO READ THE EVIDENCE ON THE ECONOMY SAID CHIEF WHITE HOUSE ECONOMIST LAURA TYSON THE ADMINISTRATION AND THE FED HAVE THE SAME OBJECTIVE SUSTAINABLE ECONOMIC GROWTH AND LOW INFLATION THE WHITE HOUSE ECONOMIC FORECAST PREDICTS THAT THE FED WOULD RAISE SHORTTERM RATES BY ONLY 1/2 PERCENTAGE POINT THIS YEAR BUT RECENT ECONOMIC INDICATORS SUGGEST THAT ECONOMY COULD BE GROWING FASTER THAN THE 3 PACE THAT ADMINISTRATION ECONOMISTS EXPECTED THE FED IMPLEMENTS CHANGES IN THE FEDERAL FUNDS RATE BY BUYING AND SELLING TREASURY SECURITIES THROUGH THE NEW YORK FED IN THE RECENT PAST THE NEW YORK FED HAS MADE IT CLEAR TO FINANCIAL MARKETS AND THROUGH THEM TO THE PRESS THAT RATES WERE CHANGING WHEN THE FED RAISED RATES IN FEBRUARY IT MADE THE UNPRECEDENTED MOVE OF ISSUING A STATEMENT FED SPOKESMAN JOSEPH COYNE SAID AT THE TIME THAT IT WASN'T A PRECEDENT MR COYNE SAID YESTERDAY'S ANNOUNCEMENT REFLECTED ONLY A PROVISIONAL DECISION NOT A PERMANENT CHANGE IN POLICY BUT HARDLY ANYONE ELSE VIEWED IT THAT WAY NOW THAT THEY'VE DONE IT MADE AN ANNOUNCEMENT TWICE THERE'S GOING TO BE SOME KIND OF PRESUMPTION THAT THEY'RE GOING TO DO IT SAID MARC WANSHEL WHO TRACKS THE FED FOR MORGAN GUARANTY TRUST CO HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS THE FED'S CHIEF CONGRESSIONAL CRITIC PRAISED THE MOVE SAYING IT WOULD PREVENT WILD SPECULATION AND UNNECESSARY LEAKS BUT SAID THE FED SHOULD DO STILL MORE SUCH AS RELEASING TRANSCRIPTS OF ITS MEETINGS WITHIN 60 DAYS YESTERDAY'S STATEMENT REMOVED ANY UNCERTAINTY ABOUT WHETHER THE FED HAD ACTED BUT GAVE NO MORE DETAIL THAN IT GENERALLY SIGNALED TO FINANCIAL MARKETS WALL STREET ANALYSTS SAID THE CHANGE WOULDN'T MAKE MUCH DIFFERENCE TO THEM BUT THE CONCESSION TO ITS CONGRESSIONAL CRITICS ADDS TO THE IMPRESSION THAT THE FED IS ON THE DEFENSIVE AND COULD BE THE PRECURSOR OF MORE CHANGES AT THE CENTRAL BANK STEVEN LIPIN IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9403230013 940323 LEISURE & ARTS JAZZ PURIST GETS HIS SOLEMN SENDOFF BY ROXANE ORGILL NEW ORLEANS DANNY BARKER MADE IT CLEAR BEFORE HE DIED NO JAZZ FUNERAL PLEASE THE MAN WHO PLAYED GUITAR WITH EVERYBODY FROM BUNK JOHNSON TO CAB CALLOWAY AND THEN CAME HOME TO MOUNT A ONEMAN CRUSADE TO PRESERVE TRADITIONAL NEW ORLEANS JAZZ DIDN'T LIKE THE WAY FUNERAL PARADES HAD DETERIORATED THE BANDS PLAYED RHYTHM AND BLUES NOW INSTEAD OF SLOW HYMNS AND DIRGES ON THE WAY TO THE CEMETERY SECOND LINERS DANCED IN A CLOUD OF REEFER SMOKE AND YOUNGSTERS JUMPED ON THE ROOFS OF CARS EVEN THE HEARSE THE JAZZ FUNERAL HAD BECOME JUST ANOTHER ROWDY PARTY IN A PARTY TOWN NO WAY WAS BARKER WHO DIED ON MARCH 13 AT AGE 85 GOING OUT LIKE THAT BUT HIS WISHES PUT HIS MUSICIAN FRIENDS IN A PICKLE HOW COULD THEY NOT GIVE DANNY BARKER A JAZZ FUNERAL EVEN NONMUSICIANS ARE ENTITLED TO A FUNERAL PARADE COMPLETE WITH A SEVEN OR EIGHTPIECE BAND AND A GRAND MARSHAL HOW COULD THEY LET THE MAN WHO WROTE THE SONG SAVE THE BONES FOR HENRY JONES MADE MANY RECORDINGS WITH HIS WIFE SINGER BLUE LU AND GOT ELECTED TO THE JAZZ HALL OF FAME GO TO HIS GRAVE WITHOUT A PEEP SO OF COURSE BARKER GOT A JAZZ FUNERAL A GREAT BIG BEAUTIFUL NOISY FUNERAL WITH A BAND OF 40 MUSICIANS OR MORE SIX GRAND MARSHALS AND A SECOND LINE NUMBERING IN THE MANY HUNDREDS NOT AS GRAND AS THE GREAT CLARINETIST ALPHONSE PICOU'S FUNERAL WHICH DREW 10000 PEOPLE IN 1961 BUT CLOSE MORE TO THE POINT IT WAS A TRADITIONAL JAZZ FUNERAL OR AS NEAR TO ONE AS ORGANIZER GREGG STAFFORD A 40YEAROLD TRUMPET PLAYER IN BARKER'S BAND THE JAZZ HOUNDS COULD MAKE IT GIVEN SUCH MODERNDAY HINDRANCES AS FREEWAYS AND REEBOKS JAZZ FUNERALS DATE BACK AT LEAST AS FAR AS 1819 WHEN ARCHITECT BENJAMIN HENRY LATROBE NOTED THAT FUNERAL PARADES WERE PECULIAR TO NEW ORLEANS ALONE AMONG ALL AMERICAN CITIES ALSO PECULIAR TO THE CITY OF PLEASURE WAS A MANIA FOR BRASS INSTRUMENTS EVERY SOCIAL CLUB AND BENEVOLENT SOCIETY HAD ITS BRASS BAND FOR A FUNERAL THE PRACTICE WAS TO ASSEMBLE AT THE CLUB IN THE MORNING AND PARADE TO THE CHURCH DELIVERING A STEADY STREAM OF DIRGES AND SLOW MARCHES ALONG THE WAY AFTER THE CEREMONY THE BAND ESCORTED THE BODY TO THE CEMETERY AGAIN PLAYING SLOW MOURNFUL MUSIC THERE IS SOME DISPUTE AS TO WHETHER THE MUSICIANS ENTERED THE CEMETERY OR STAYED RESPECTFULLY OUTSIDE IN ANY CASE AFTER THE BURIAL THEY BURST INTO SPIRITED MARCHES AND POPULAR SONGS TO REPRESENT THE JOY OF EVERLASTING LIFE AND PARADED BACK TO THE CLUB THE WHOLE AFFAIR MIGHT LAST NINE HOURS MOST OF WHICH WERE SPENT IN MOTION MAKING MUSIC TIMES CHANGE FREEWAYS DISSECT THE CITY NOW AND NOT EVEN THE DETERMINED STAFFORD COULD PERSUADE BAND MEMBERS TO TREK OUT TO ST RAYMOND CATHOLIC CHURCH THREE MILES FROM THE TOWN CENTER SO THEY ASSEMBLED THREE BLOCKS FROM THE CHURCH PARADED TO THE GATES AND AFTER THE SERVICE DROVE TO A POINT SEVEN BLOCKS FROM ST LOUIS CEMETERY NO 2 FOR THE FINAL CORTEGE THE MUSICIANS GATHERED WITH VIGOROUS HANDSHAKES ALL AROUND EVEN THOUGH MOST HAD SEEN EACH OTHER ONLY MINUTES BEFORE AT THE SERVICE THE GRAND MARSHALS ADJUSTED THE SASHES ACROSS THEIR CHESTS BEARING THE NAMES OF THEIR BANDS OLYMPIA TUXEDO OR CLUBS MONEY WASTERS AND THE PAPER DOVES PERCHED ON THEIR SHOULDERS REPRESENTING THE FLIGHT TO THE HEREAFTER AT THE FIRST DRUMROLL ADULTS AND CHILDREN APPEARED FROM WHO KNOWS WHERE TO DANCE ALONGSIDE FORMING THE SOCALLED SECOND LINE THAT WAS NO LINE AT ALL BUT A THROBBING MASS THE MARSHALS LED WITH A HALTING SIDEWAYS TWOSTEP ONE OF THEM WAVED A PICTURE OF BARKER THE COLORFUL SCENE WAS NOT LOST ON THE THRONG OF PHOTOGRAPHERS SHOOTING EXCITEDLY AWAY BUT THE MUSIC THE MUSIC WAS THE THING TRUMPETS TROMBONES AND SAXOPHONES LOCKED IN HARMONIC AND MELODIC STEP FORMED A THICK BLOCK OF SOUND FROM WHICH COUNTERMELODIES ON A CLARINET OR SOPRANO SAX SPIRALED UP LIKE CIGARETTE SMOKE IN THE SWEET BY AND BY LORD LORD LORD WHAT A FRIEND WE HAVE IN JESUS SECOND LINERS SANG ALONG ONE COULD SEE THEIR OPEN MOUTHS AND ECSTATIC EYES BUT THEIR VOICES WERE ALL BUT LOST IN THE MOURNFUL MARCH OF BASS DRUM AND BLASTS OF TUBA THE MUSIC IS DIFFICULT IT CALLS FOR MUSICIANS TO IMPROVISE NOT AS SOLOISTS AS THEY WOULD IN LATER JAZZ LOUIS ARMSTRONG WAS THE FIRST TO PLAY SOLOS IN THE 1920S BUT AS A UNIT THE INDIVIDUAL IS ENCOURAGED TO EXPRESS HIMSELF FREELY BUT MUST NOT LOSE STEP WITH HIS FELLOW MUSICIANS AND WITH THE TUNE NO WONDER THAT MOST BRASS BANDS TODAY PREFER THE EASIER ROUTE OF RHYTHM AND BLUES IN WHICH IMPROVISATION IS MINIMAL AND MELODY COMES MOSTLY IN RIFFS RHYTHMIC SNIPS OF MUSIC PLAYED OVER AND OVER THEY NORMALLY PLAY IN JEANS TSHIRTS AND SANDALS TOO WHICH WOULD NEVER DO FOR THE FUNERAL OF DANNY BARKER GRANDSON OF ISIDORE BARBARIN A MEMBER OF THE MIGHTY ONWARD BRASS BAND IN ITS PRIME STAFFORD INSISTED ON THE STANDARD UNIFORM BLACK JACKET TIE TROUSERS AND SHINED SHOES CLEAN PRESSED WHITE SHIRT SPECIAL BLACK CAP WITH A BAND'S NAME EMBLAZONED ACROSS THE FRONT THE SHINED SHOES WERE ESPECIALLY IMPORTANT CLARINETIST MICHAEL WHITE WHO IS 39 REMEMBERS GAZING IN AWE AT THE SENIOR MUSICIANS' SHOES THAT SHONE LIKE GLASS WHITE CAME UP THROUGH THE FAIRVIEW BAPTIST CHURCH BANDS WHICH BARKER FOUNDED IN A HUGELY SUCCESSFUL ATTEMPT TO JUMPSTART THE BRASS BAND IN THE '70S HE IS DEDICATED TO CARRYING THE TORCH FOR TRADITIONAL JAZZ AND HE IS WORRIED THE TRADITION IS IN A LOT OF TROUBLE BECAUSE OF COMMERCIALIZATION AND PEOPLE DYING LIKE THIS HE SAYS CATCHING HIS BREATH AT PARADE'S END STAFFORD ALSO A FAIRVIEW BAND ALUMNUS SAID HE WAS 95 PLEASED WITH HIS ATTEMPT TO DELIVER AN AUTHENTIC JAZZ FUNERAL INCLUDED IN THE 5 ONE CAN ASSUME WERE THE SINGLE PAIR OF BLACK REEBOKS AND THE BRIEF EPISODE OF RHYTHM AND BLUES THAT CAME NEAR THE END AFTER MANY MANY HYMNS MINUTES BEFORE THE BAND MARCHED SINGLE FILE INTO TROMBONE SHORTY'S FOR LIQUID REFRESHMENT A SHORT WHILE LATER A FEW OF THE MUSICIANS COULD BE SEEN MARCHING UP THE STREET TO A ROCKING R&B BEAT SURROUNDED BY SECOND LINERS LIKE A SWARM OF BEES MS ORGILL IS A WRITER IN HOBOKEN NJ 9403230012 940323 WHO'S NEWS DANIEL COPP ASSUMES TOP FINANCIAL POST AT CIRCUS CIRCUS LAS VEGAS CIRCUS CIRCUS ENTERPRISES INC SAID DANIEL N COPP WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ASSUMING THE TOP FINANCIAL POST FROM CLYDE T TURNER WHO REMAINS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR COPP 49 YEARS OLD WILL OVERSEE FINANCE AND INVESTOR RELATIONS AND WILL REPORT TO MR TURNER LAST MONTH WILLIAM G BENNETT CIRCUS'S COFOUNDER AND CHAIRMAN YIELDED THE CHIEF EXECUTIVE'S TITLE TO MR TURNER AND KURT SULLIVAN WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER THE APPOINTMENTS ARE PART OF CIRCUS'S EFFORT TO STABILIZE SENIOR MANAGEMENT FOLLOWING A RASH OF EXECUTIVE DEPARTURES AND DISMISSALS THAT RATTLED INVESTORS SOME MAJOR INSTITUTIONAL HOLDERS HAVE PRIVATELY EXPRESSED CONCERN ABOUT MANAGEMENT CONTINUITY AT CIRCUS WHICH HAS LONG BEEN A FAVORED PICK AMONG GROWTHORIENTED INVESTORS CIRCUS' STOCK FELL 75 CENTS TO 36 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY BEFORE FORMING A PRIVATE FINANCIALCONSULTING FIRM MR COPP SPENT 14 YEARS AT FEDERAL EXPRESS CORP WHERE HE SERVED IN VARIOUS CORPORATE COMMUNICATIONS AND FINANCE POSITIONS INCLUDING MANAGER OF INVESTOR RELATIONS AND VICE PRESIDENT OF INTERNATIONAL FINANCE PRIOR TO THAT HE HAD WORKED AS A SECURITIES ANALYST AND PORTFOLIO MANAGER MR COPP IS THE SECOND SENIOR EXECUTIVE TO JOIN CIRCUS'S RANKS FROM THE OUTSIDE IN THE PAST YEAR OR SO WHICH IS A DEPARTURE FROM THE COMPANY'S PRACTICE OF GROOMING TALENT INTERNALLY MR TURNER A LONGTIME FINANCIAL EXECUTIVE AT MIRAGE RESORTS INC JOINED CIRCUS LAST YEAR AFTER THE DEPARTURE OF GLENN SCHAEFFER AS PRESIDENT AND CHIEF FINANCIAL OFFICER 9403230011 940323 JOHN HANCOCK MUTUAL WILL PAY 1 MILLION TO SETTLE GIFT CHARGES BOSTON JOHN HANCOCK MUTUAL LIFE INSURANCE CO AGREED TO PAY 1 MILLION TO SETTLE ALLEGATIONS THAT ITS LOBBYISTS ILLEGALLY GAVE MASSACHUSETTS STATE LEGISLATORS FREE HOTEL ROOMS THEATER TICKETS A SUPER BOWL TRIP AND OTHER GIFTS OVER THE PAST SEVEN YEARS IN A PROBE BY THE US ATTORNEY AND THE FEDERAL BUREAU OF INVESTIGATION JOHN HANCOCK WAS FOUND TO HAVE ALLEGEDLY PAID A NUMBER OF LEGISLATORS MORE THAN 35000 IN GIFTS FROM JANUARY 1986 TO MAY 1993 IN VARIOUS FORMS INCLUDING FREE MEALS GOLF GAMES SPORTS TICKETS AND OTHER PERKS THE LEGISLATOR WHO RECEIVED THE MOST GIFTS WAS AT THE TIME HE RECEIVED THEM CHAIRMAN OF THE HOUSE JOINT COMMITTEE ON INSURANCE WHOSE DELIBERATIONS AND DECISIONS WERE OF GREATEST IMPORTANCE TO HANCOCK THE US ATTORNEY'S OFFICE SAID FEDERAL OFFICIALS DECLINED TO NAME THE LEGISLATOR JOHN HANCOCK SAID ITS OWN INTERNAL INVESTIGATION LED IT TO VOLUNTARILY DISCLOSE THE VIOLATIONS TO STATE OFFICIALS TODAY'S AGREEMENTS ARE AN IMPORTANT STEP IN RESOLVING THIS MATTER AND ENSURING THAT THE ACTIVITIES THAT LED TO THIS PROBLEM DON'T HAPPEN AGAIN THE COMPANY SAID IN A STATEMENT THE US ATTORNEY'S OFFICE FILED A CIVIL COMPLAINT IN FEDERAL COURT IN BOSTON ALLEGING THAT THE GIFTS WERE PART OF A SCHEME TO DEFRAUD THE PUBLIC UNDER THE SETTLEMENT JOHN HANCOCK AN INSURANCE CONCERN BASED IN BOSTON WILL PAY THE US GOVERNMENT 900000 AND THE STATE OF MASSACHUSETTS 110000 THE COMPANY ALSO WILL ADMIT TO HUNDREDS OF VIOLATIONS OF STATE GRATUITY LAWS AS PART OF THE AGREEMENT THE US ATTORNEY'S OFFICE DISMISSED THE COMPLAINT AGAINST THE COMPANY HOWEVER THE INVESTIGATION OF EMPLOYEES AND STATE LEGISLATORS IS CONTINUING 9403230010 940323 SENATE HOUSE MOVE CLOSER TO HEARINGS ON WHITEWATER DATES ARE STILL VAGUE BY KENNETH H BACON AND ELLEN JOAN POLLOCK STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE SENATE AND THE HOUSE ARE BOTH MOVING CLOSER TO HEARINGS ON WHITEWATER ALTHOUGH DATES MAY NOT BE NAILED DOWN QUICKLY THE HOUSE VOTED 40815 TO HOLD HEARINGS ON THE WEB OF ISSUES SURROUNDING THE WHITEWATER AFFAIR THE HOUSE FOLLOWED THE EXAMPLE OF THE SENATE AND INSTRUCTED ITS LEADERS TO DESIGN A HEARING FORMAT AND SCHEDULE THAT WON'T INTERFERE WITH INVESTIGATIONS LAUNCHED BY SPECIAL COUNSEL ROBERT FISKE SENATE REPUBLICANS WERE PREPARING TO PROPOSE THE CREATION OF A SPECIAL COMMITTEE CONTAINING THE RANKING DEMOCRAT AND REPUBLICAN FROM EACH SENATE COMMITTEE THAT HAS JURSIDICTION OVER THE BANKING SMALL BUSINESS TAX AND OTHER ISSUES THAT HAVE BEEN LUMPED TOGETHER IN THE WHITEWATER AFFAIR THE ISSUES INCLUDE THE DEALINGS OF PRESIDENT AND HILLARY RODHAM CLINTON WITH A FAILED ARKANSAS SAVINGS AND LOAN THEIR INVOLVEMENT IN A FORMER LAND COMPANY CALLED WHITEWATER DEVELOPMENT CO AND THEIR INFLUENCE ON FINANCIAL AGENCIES IN ARKANSAS AND WASHINGTON THE CLINTONS HAVE DENIED ANY WRONGDOING OR IMPROPRIETY LAST WEEK THE SENATE VOTED 980 FOR A RESOLUTION INSTRUCTING MAJORITY LEADER GEORGE MITCHELL D MAINE AND MINORITY LEADER ROBERT DOLE R KAN TO WORK OUT THE DETAILS THIS WEEK FOR HEARINGS BUT YESTERDAY BOTH OFFICIALS HINTED THAT THE ARRANGEMENTS MAY NOT BE SOLIDIFIED UNTIL AFTER THE PASSOVEREASTER RECESS THAT STARTS THIS WEEK IN ANOTHER WHITEWATERRELATED DEVELOPMENT DAVID HALE A FORMER LITTLE ROCK MUNICIPAL JUDGE PLEADED GUILTY TO TWO FELONY COUNTS OF CONSPIRACY AND MAIL FRAUD MR HALE HAS ALLEGED THAT MR CLINTON PRESSURED HIM TO MAKE A LOAN TO WHITEWATER PARTNER SUSAN MCDOUGAL AND THAT SOME OF THAT MONEY ENDED UP IN WHITEWATER ACCOUNTS MR HALE'S SETTLEMENT OF THE CHARGES WHICH WAS EXPECTED MEANS HE WILL BE ABLE TO TESTIFY BEFORE A SPECIAL GRAND JURY TO BE CONVENED THIS WEEK THE PLEA MR FISKE SAID YESTERDAY IN FEDERAL COURT IN LITTLE ROCK WILL ALLOW US NOW TO INVESTIGATE ALL OF THE ALLEGATIONS THAT MR HALE HAS MADE AND OTHER ALLEGATIONS HE HAS MADE DURING THE TIME HE HAS BEEN COOPERATING WITH US MR HALE WON'T BE SENTENCED FOR AT LEAST 120 DAYS TO GIVE HIM TIME TO FULLY DEMONSTRATE HIS COOPERATION WITH THE GOVERNMENT MR FISKE SAID HE COULD BE SENTENCED TO AS MUCH AS 10 YEARS IN JAIL AND BE REQUIRED TO PAY 500000 IN FINES BUT THE JUDGE IS LIKELY TO TAKE HIS COOPERATION INTO CONSIDERATION AT THE SENTENCING AS PRESIDENT OF CAPITAL MANAGEMENT SERVICES INC A COMPANY LICENSED BY THE SMALL BUSINESS ADMINISTRATION TO MAKE LOANS TO DISADVANTAGED BUSINESS PEOPLE MR HALE ADMITTED THAT HE HAD DEFRAUDED THE AGENCY OUT OF 900000 HE ALSO ADMITTED THAT BETWEEN 1985 AND 1991 HE USED GOVERNMENT AND CMS FUNDS TO MAKE LOANS FOR IMPROPER PURPOSES THE RECIPIENTS OF THOSE LOANS WEREN'T DISCLOSED BUT THE LOAN TO MS MCDOUGAL WAS MADE IN 1986 MR HALE ALSO SAID HE HAD MADE IMPROPER LOANS TO THREE COMPANIES OWNED BY ARKANSAS GOV JIM GUY TUCKER AND HIS FAMILY ALSO YESTERDAY THE SENATE BANKING COMMITTEE RELEASED A THIRD LETTER FROM DEPUTY TREASURY SECRETARY ROGER ALTMAN DISCLOSING ADDITIONAL DISCUSSIONS HE HELD WITH WHITE HOUSE OFFICIALS THE CONVERSATIONS FOLLOWED A FEB 2 MEETING THAT MR ALTMAN ATTENDED AT THE WHITE HOUSE ON PROCEDURAL MATTERS RELATED TO POSSIBLE GOVERNMENT CHARGES INVOLVING MADISON GUARANTY SAVINGS & LOAN A FAILED ARKANSAS THRIFT LINKED TO THE WHITEWATER INVESTMENT MR ALTMAN REVEALED THE FEB 2 MEETING AT A BANKING COMMITTEE HEARING LATE LAST MONTH HE HAD SENT TWO PREVIOUS LETTERS TO THE COMMITTEE DISCLOSING OTHER CONTACTS WITH WHITE HOUSE OFFICIALS IN WHICH ISSUES RELATING TO MADISON WERE DISCUSSED IN THE NEWLY DISCLOSED MEETING MR ALTMAN SAID HE DISCUSSED HIS DECISION TO RECUSE HIMSELF FROM THE MADISON CASE AND TO STEP DOWN AS ACTING HEAD OF THE RESOLUTION TRUST CORP THE S&L CLEANUP AGENCY MR ALTMAN WROTE THE LATEST LETTER ON THE EVE OF HIS APPEARANCE BEFORE A FEDERAL GRAND JURY THAT IS LOOKING INTO WHETHER THE WHITE HOUSE TRIED TO IMPROPERLY INFLUENCE THE CASE MR ALTMAN AND OTHER TREASURY AND WHITE HOUSE OFFICIALS HAVE CALLED THEIR DISCUSSIONS PROPER AND ABOVE BOARD SEPARATELY PATSY THOMASSON THE WHITE HOUSE DIRECTOR OF ADMINISTRATION TOLD A HOUSE SUBCOMMITTEE THAT THE SECRET SERVICE ISSUED HER A PERMANENT SECURITY PASS ON MARCH 5 REPUBLICANS HAVE CRITICIZED THE ADMINISTRATION AND MS THOMASSON IN PARTICULAR FOR WORKING IN THE WHITE HOUSE FOR OVER A YEAR WITHOUT THE PROPER SECURITY REVIEW THAT COMES WITH SUCH A PASS BUT REP FRANK WOLF OF VIRGINIA QUESTIONED THE INTEGRITY OF THE WHITE HOUSE SAYING HE HAS BEEN ASSURED FOR MONTHS BY CHIEF OF STAFF THOMAS MCLARTY THAT THE ADMINISTRATION WASN'T TAKING ANY SECURITY RISKS ONLY TO LEARN FROM MS THOMASSON THAT MR MCLARTY JUST RECENTLY RECEIVED HIS OWN PERMANENT PASS MR MCLARTY HOWEVER HAD RECEIVED OTHER SECURITY CLEARANCES MS THOMASSON ALSO SAID THAT FOUR VETERAN CONSULTANTS FROM THE PRESIDENTIAL CAMPAIGN PAUL BEGALA JAMES CARVILLE STANLEY GREENBERG AND MANDY GRUNWALD WOULD UNDERGO BACKGROUND CHECKS AND PROBABLY RECEIVE PERMANENT NONGOVERNMENT PASSES INSTEAD OF THE TEMPORARY ONES THEY HAVE BEEN USING SHE INSISTED THERE WERE NO INSTANCES IN WHICH THE SECRET SERVICE HAD REJECTED THE ISSUING OF A PASS AND BEEN OVERRULED BY OTHERS IN THE WHITE HOUSE BUT MS THOMASSON CONCEDED THAT DEE DEE MYERS THE PRESS SECRETARY HAD ACCESS TO DOCUMENTS REQUIRING A SECURITY CLEARANCE EVEN THOUGH SHE DOESN'T YET HAVE A PERMANENT PASS MS MYERS ONLY RECENTLY COMPLETED THE APPLICATION PAPERWORK AND HAS A TEMPORARY PASS 9403230009 940323 RULE OF LAW THE SEXIST VIOLENCE AGAINST WOMEN ACT BY CATHY YOUNG ONE LITTLEKNOWN SECTION OF THE CRIME BILL WENDING ITS WAY THROUGH CONGRESS IS LESS ABOUT FIGHTING CRIME THAN IT IS ABOUT WAGING GENDER WARFARE THE VIOLENCE AGAINST WOMEN ACT SPONSORED BY SEN JOSEPH BIDEN D DEL SINCE 1990 WAS PASSED BY THE SENATE AS PART OF THE OMNIBUS CRIME PACKAGE IN NOVEMBER IN SLIGHTLY DIFFERENT FORM IT IS PART OF THE HOUSE BILL TO BE VOTED ON THIS WEEK IN SEN BIDEN'S OWN WORDS THE WHOLE PURPOSE OF THIS LEGISLATION IS TO RAISE THE CONSCIOUSNESS OF THE AMERICAN PUBLIC AMONG THE EXPERTS HIS STAFF CONSULTED ON THE BILL WAS ANDREA DWORKIN AUTHOR OF A BOOK ARGUING THAT ALL SEXUAL INTERCOURSE IS RAPE BACKED BY CONSERVATIVES SUCH AS SEN ORRIN HATCH R UTAH THE VIOLENCE AGAINST WOMEN ACT HAS MANY APPEALING PROVISIONS FEDERAL GRANTS TO STATES TO COMBAT SEX CRIMES AND IMPROVE SECURITY IN PUBLIC PLACES THE REQUIREMENT THAT RAPE VICTIMS BE CONSULTED ABOUT THEIR SAFETY CONCERNS WHEN THE DEFENDANT IS RELEASED ON BAIL BUT IT ALSO MANDATES GENDER SENSITIVITY TRAINING FOR JUDGES AND IN A KEY SECTION EXTENDS FEDERAL CIVILRIGHTS PROTECTIONS TO CRIMES MOTIVATED BY GENDER WHILE THE TEXT OF THE BILL OFFERS FEW CLUES TO HOW BROADLY SUCH CRIMES WOULD BE DEFINED ITS CHAMPIONS SUGGEST THAT EVERY RAPE AND DOMESTIC ASSAULT WOULD BECOME A POTENTIAL FEDERAL CASE A RAPE OR A SEXUAL ASSAULT SHOULD BE DEEMED A CIVILRIGHTS CRIME JUST AS HATE BEATINGS AIMED AT BLACKS OR ASIANS SEN BIDEN SAID AT A 1990 HEARING YET THE UNDERLYING FEMINIST VIEW THAT WOMEN ARE RAPED ON THE BASIS OF GENDER IN THE POLITICAL RATHER THAN BIOLOGICAL SENSE IE IN THE SAME WAY THAT BLACKS WERE LYNCHED ON THE BASIS OF RACE IS REJECTED BY VIRTUALLY ALL SEXCRIMES RESEARCHERS SOME RAPISTS ARE DRIVEN BY HATRED OF WOMEN BUT MOST SEEK EITHER GRATIFICATION OR A SEXUAL OUTLET FOR GENERALIZED AGGRESSION AND ANGER MOREOVER MALES ARE SEXUALLY ASSAULTED TOO SEN BIDEN'S ASSERTION THAT 97 OF SEXCRIME VICTIMS ARE FEMALE IS NOT BASED ON ANY KNOWN DATA ACCORDING TO JUSTICE DEPARTMENT NUMBERS 7 TO 10 OF RAPE VICTIMS OVER THE AGE OF 12 ARE MALE NOT COUNTING MOST PRISON RAPES TWENTYFIVE PERCENT TO 40 OF CHILDREN WHO ARE SEXUALLY ABUSED ARE BOYS MALE STREET KIDS ARE AT ESPECIALLY HIGH RISK YET THE LEGISLATION AUTHORIZES FUNDS FOR THE PREVENTION OF THE SEXUAL ABUSE OF ONLY FEMALE RUNAWAY HOMELESS AND STREET YOUTH SEN BIDEN ASSERTS THAT CIVILRIGHTS PROTECTIONS FOR SEXBASED CRIMESWOULD COVER MEN TOO BUT THE VERY CONCEPT OF RAPE AS A HATE CRIME IS BASED ON THE FACT THAT IT DISPROPORTIONATELY AFFECTS WOMEN AND ON THE NOTION THAT RAPE IS AS FEMINIST LAW PROFESSOR CATHARINE MACKINNON PUTS IT BOTH AN ACT AND A SYMBOL OF WOMEN'S SUBORDINATE STATUS TO MEN IT IS LIKELY THEREFORE THAT MALEONMALE RAPES WOULD BE LABELED RANDOM CRIMES WHICH THE ACT SPECIFIES WOULD NOT BE COVERED TREATING DOMESTIC VIOLENCE AS GENDERBASED IS EQUALLY DUBIOUS EVEN FEMINIST LEGAL SCHOLAR ELIZABETH SCHNEIDER ACKNOWLEDGED IN A 1992 ARTICLE IN THE NEW YORK UNIVERSITY LAW REVIEW THAT VIOLENCE TOWARD SAMESEX LOVERS AND TOWARD ELDERS CHALLENGES THE NOTION THAT SEXISM DEFINES BATTERING UNDER THE LOGIC OF THE VIOLENCE AGAINST WOMEN ACT AN ELDERLY WOMAN IS PROTECTED IF SHE IS BEATEN BY HER HUSBAND BUT NOT IF SHE IS BEATEN BY HER DAUGHTER A JEALOUS HUSBAND CAN FACE A CIVILRIGHTS SUIT IF HE STABS HIS WIFE BUT NOT IF HE STABS HER LOVER THE BILL USES FEDERAL GRANTS TO REWARD JURISDICTIONS THAT ENACT MANDATORY ARREST FOR MISDEMEANOR DOMESTIC ASSAULT A POLICY MANY EXPERTS INCLUDING FORMER SUPPORTERS SUCH AS CRIMINOLOGIST LAWRENCE SHERMAN REGARD AS OFTEN COUNTERPRODUCTIVE GRANTELIGIBLE STATES ARE ALSO REQUIRED TO DISCOURAGE DUAL' ARRESTS OF ABUSED AND ABUSER DECODED THIS MEANS THAT AN OFFICER RESPONDING TO A DOMESTIC DISPUTE SHOULD ARREST THE MAN BUT NOT THE WOMAN EVEN IF THERE IS PROBABLE CAUSE TO DETAIN BOTH SALLY GOLDFARB A SENIOR ATTORNEY FOR THE LEGAL DEFENSE FUND OF THE NATIONAL ORGANIZATION FOR WOMEN BELIEVES THAT WOMEN ARE ARRESTED ONLY IN RETALIATION FOR HAVING BOTHERED THE POLICE YET MANY STUDIES SHOW THAT BOTH SEXES INITIATE DOMESTIC VIOLENCE AT NEARLY EQUAL RATES AND THE LINE BETWEEN ABUSED AND ABUSER IS BY NO MEANS ALWAYS CLEAR THE ONLY REASON TO DISCOURAGE DUAL ARRESTS IS IF YOU BELIEVE THAT FACTS DON'T MATTER MEN ARE ALWAYS TO BLAME SAYS MR SHERMAN HE PERSONALLY WITNESSED AN INCIDENT IN WASHINGTON STATE WHERE ANTIDUAL ARREST MEASURES WERE PASSED IN RESPONSE TO FEMINIST LOBBYING IN WHICH A MAN WAS ARRESTED AFTER HIS WIFE HAD HIT HIM BUT HE HAD ONLY YELLED AT HER SEN BIDEN AND HIS SUPPORTERS CLAIM THAT THE VIOLENCE AGAINST WOMEN ACT DESPITE ITS TITLE IS GENDERNEUTRAL CLEARLY IT IS NOT IT IS BIASED AGAINST MEN WHO ARE THE PRIMARY VICTIMS OF VIOLENT CRIME COMPARED WITH WOMEN FEDERAL STATISTICS SHOW MEN FACE FOUR TIMES THE RISK OF AGGRAVATED ASSAULT BY STRANGERS TWICE THE RISK OF AGGRAVATED ASSAULT BY ACQUAINTANCES AND THREE TIMES THE RISK OF HOMICIDE THE VIOLENCE AGAINST WOMEN ACT IS BEING FOISTED ON THE AMERICAN PEOPLE WITH NO OPEN DEBATE THE FOUR SENATE JUDICIARY COMMITTEE HEARINGS IN 1990 AND 1991 HEARD ONLY WITNESSES WHO FAVORED THE BILL AT THE FIRST HEARING SEN BIDEN VOICED CONCERN THAT CRITICS MIGHT BE HOLDING BACK FOR FEAR OF APPEARING ANTIWOMEN YET WHEN MEN'SRIGHTS ACTIVIST JON RYAN ASKED TO TESTIFY ABOUT THE GENDER BIAS IN THE ACT HIS REQUESTS WERE IGNORED IN A LETTER SEN BIDEN SUGGESTED THAT MR RYAN SUBMIT HIS TESTIMONY FOR THE WRITTEN RECORD HE DID SO WHEN THE RECORD APPEARED HIS STATEMENT WAS NOT INCLUDED WITH RARE CANDOR MS DWORKIN TOLD A JOURNALIST THAT THE ONLY POSSIBLE EXPLANATION FOR THE BILL'S POPULARITY WAS THAT SENATORS DON'T UNDERSTAND THE MEANING OF THE LEGISLATION THEY PASS MAYBE THEY SHOULD HEED HER WORDS AND TAKE A SECOND LOOK MAINSTREAM AND CONSERVATIVE SUPPORT FOR THE VIOLENCE AGAINST WOMEN ACT STEMS FROM A VAGUE DESIRE TO BE GOOD ON WOMEN'S ISSUES AS WELL AS AN OLDFASHIONED PATERNALISM THAT FINDS VIOLENCE TOWARD WOMEN UNIQUELY ABHORRENT IN PART IT IS A SINCERE EFFORT TO ADDRESS REAL PROBLEMS BUT THAT GOAL COULD BE ACCOMPLISHED BY STRAIGHTFORWARD LEGISLATION ON SEX CRIMES AND FAMILY VIOLENCE THAT DOES NOT TRIVIALIZE ASSAULTS ON MEN AND BOYS OR GIVE AN OFFICIAL SEAL OF APPROVAL TO A RADICAL IDEOLOGY THAT SEES AMERICAN WOMEN AS VICTIMS OF SYSTEMATIC GENDER TERRORISM MS YOUNG IS WRITING A BOOK TITLED GENDER WARS FOR THE FREE PRESS 9403230008 940323 BUSINESS BRIEF PRICE/COSTCO INC NET INCOME FELL 10 SALES ROSE 8 FOR FISCAL 2ND PERIOD PRICE/COSTCO INC IN KIRKLAND WASH CITING A HIGHER TAX RATE AND ONETIME ITEMS REPORTED A 10 DROP IN SECONDQUARTER NET INCOME ON AN 8 INCREASE IN SALES FOR THE QUARTER ENDED FEB 13 NET SLIPPED TO 623 MILLION OR 28 CENTS A SHARE AFTER A 15 MILLION CHARGE RELATING TO DAMAGE FROM THE JANUARY EARTHQUAKE IN LOS ANGELES IN THE YEAREARLIER PERIOD NET WAS 69 MILLION OR 31 CENTS A SHARE AFTER A GAIN OF 4 MILLION FROM SALE OF PROPERTY SALES FOR THE RECENT PERIOD WERE 41 BILLION UP FROM 38 BILLION A YEAR EARLIER THE TAX RATE FOR THE CURRENT YEAR WAS 41 COMPARED WITH 40 LAST YEAR THE COMPANY'S STOCK CLOSED AT 1950 A SHARE DOWN 50 CENTS IN NASDAQ STOCK MARKET TRADING 9403230007 940323 BUSINESS BRIEF SOUTHERN STARR BROADCASTING GROUP INTEREST IN POSSIBLE OFFERS PROMPTS SHARES TO SURGE 30 SOUTHERN STARR BROADCASTING GROUP INC SAID IT RECEIVED SEVERAL UNSOLICITED EXPRESSIONS OF INTEREST FOR ACQUIRING THE COMPANY OR ENTERING INTO A BUSINESS COMBINATION SHARES OF THE COMPANY IN ALEXANDRIA VA WHICH OPERATES SIX RADIO STATIONS SURGED 3125 OR 30 TO CLOSE AT 1350 A SHARE IN TRADING ON THE NASDAQ STOCK MARKET SOUTHERN STARR SAID IT WILL CONSIDER THE PROPOSALS AND OTHER OPTIONS AND HAS RETAINED INVESTMENT BANKING FIRM WERTHEIM SCHROEDER & CO AS ITS ADVISER THE COMPANY ALSO SAID IT EXPECTS TO POST A 12 TO 15 JUMP IN REVENUE IN FISCAL 1993 ENDED MARCH 31 COMPARED WITH FISCAL 1992 BASED ON RADIO STATIONS OPERATED IN BOTH YEARS OVERALL REVENUE FOR SOUTHERN STARR IN FISCAL 1992 WAS ABOUT 10 MILLION CASH FLOW AN INDUSTRY BAROMETER FOR BROADCASTING COMPANIES IS EXPECTED TO INCREASE ABOUT 20 TO MORE THAN 33 MILLION FROM 27 MILLION 9403230006 940323 INTERNATIONAL BRIEF BOWATER PLC PRETAX PROFIT WAS UP 36 IN '93 AIDED BY ACQUISITIONS BOWATER PLC A BRITISH PAPER AND PACKAGING CONCERN SAID ITS PRETAX PROFIT IN 1993 ROSE 36 TO 2016 MILLION 3001 MILLION BOOSTED MAINLY BY ACQUISITIONS SALES WERE 213 BILLION ALSO UP 36 FOREIGNEXCHANGE TRANSLATIONS THAT FAVORED BOWATER BOOSTED OPERATING PROFIT BY ABOUT 7 MILLION IN 1993 BOWATER SAID IT EXPECTS NO CONTRIBUTION FROM FOREIGN EXCHANGE THIS YEAR AMONG BOWATER'S ACQUISITIONS IN 1993 ARE THE 37 MILLION PURCHASE OF MITEK INC AND THE 298 MILLION ACQUISITION OF SPECIALITY COATINGS INTERNATIONAL INC THE COMPANY BOOKED EXCEPTIONAL GAINS FROM THE SALE OF DISCONTINUED OPERATIONS MAINLY ITS CHECKS IN THE MAIL BUSINESS FOR 57 MILLION 9403230005 940323 CORRECTIONS & AMPLIFICATIONS GITANO GROUP INC THE JEANSWEAR MAKER SPENT 20 MILLION A YEAR ON ALL TYPES OF ADVERTISING AND PROMOTION A FEB 18 PAGEONE ARTICLE SAID INCORRECTLY THAT THE COMPANY SPENT 20 MILLION A YEAR ON TV ADVERTISING ALONE THE ARTICLE ALSO MENTIONED THE BAR MITZVAH OF THE SON OF GITANO'S FORMER PRESIDENT HAIM DABAH AT WHICH THE CHILDREN PLAYED A GAME OF DIVING FOR DOLLARS THE DOLLARS USED IN THE GAME ACCORDING TO SOME WHO ATTENDED THE PARTY WERE ACTUALLY PLAY MONEY 9403230004 940323 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT AMERICAN GENERAL FINANCE 150 MILLION OF SENIOR NOTES DUE APRIL 1 1997 PRICED AT PAR TO YIELD 58 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC AMERICAN GENERAL FINANCE IS A UNIT OF AMERICAN GENERAL CORP COLD METAL PRODUCTS INC INITIAL PUBLIC OFFERING OF 2770000 COMMON SHARES PRICED AT 10 APIECE THROUGH LEAD UNDERWRITERS MCDONALD & CO SECURITIES INC NATWEST SECURITIES LTD AND FIELDSTONE FPCG SERVICES LIMITED PARTNERSHIP OF THE TOTAL THE ISSUER OFFERED 2078000 SHARES AND THE COMPANY'S PRINCIPAL SHAREHOLDER AARQUE MANAGEMENT CORP OFFERED THE REMAINING 692000 SHARES ILLINOIS 175 MILLION MARCH 1994 GENERALOBLIGATION BONDS APPARENTLY WON BY A MORGAN STANLEY & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 57048 YIELDS RANGE FROM 43 IN 1997 TO 595 IN 2019 MOODY'S HAS RATED THE BONDS DOUBLEA AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING NEW YORK CITY 6857 MILLION FIXEDRATE TAXEXEMPT FISCAL 1994 BONDS PRICED BY A JP MORGAN SECURITIES INC GROUP THE 6701 MILLION SERIES H SUBSERIES H1 BONDS HAVE YIELDS THAT RANGE FROM 445 IN 1996 TO 63 IN 2011 YIELDS FOR THE 156 MILLION SERIES I BONDS RANGE FROM 445 IN 1996 TO 63 IN 201923 THE BONDS ARE ALL REFUNDING SECURITIES MOODY'S HAS RATED THE ISSUE BAA1 AND BOTH S&P AND FITCH INVESTORS SERVICE INC HAVE ASSIGNED A SINGLEAMINUS RATINGS THE BONDS SOLD ARE PART OF AN ISSUE THAT IS SEEN TOTALING ABOUT 11 BILLION A CONCURRENT OFFERING OF 3792 MILLION OF ADJUSTABLERATE BONDS IS EXPECTED PHILADELPHIA SCHOOL DISTRICT 160 MILLION SERIES A OF 1994 GENERALOBLIGATION BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 365 IN 1995 TO 585 IN 2009 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P WASHOE COUNTY NEV SCHOOL DISTRICT 1214 MILLION GENERALOBLIGATION BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP GOLDMAN SACHS IS BELIEVED TO HAVE WON THE 1039 MILLION SCHOOLBUILDING BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 5755 YIELDS RANGE FROM 44 IN 1997 TO 595 IN 2014 THE 176 MILLION REFUNDING BONDS WERE APPARENTLY WON BY GOLDMAN WITH A TRUEINTERESTCOST BID OF 55981 THOSE BONDS HAVE YIELDS THAT RANGE FROM 51 IN 2002 TO 57 IN 2008 THE SECURITIES ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES G031 IS BACKED BY 30YEAR 8 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 85 AND WEIGHTED AVERAGE MATURITY OF 339 MONTHS CHEVY CHASE BANK FSB 200 MILLION ISSUE OF FLOATINGRATE ASSETBACKED CERTIFICATES PRICED IN TWO PARTS BY UNDERWRITERS LED BY CS FIRST BOSTON INC THE CERTIFICATES ARE BACKED BY VISA AND MASTERCARD RECEIVABLES AND WERE SOLD THROUGH CHEVY CHASE MASTER CREDIT CARD TRUST 19941 A SPECIALPURPOSE VEHICLE THE 170 MILLION IN SENIOR CLASS A CERTIFICATES WERE PRICED AT PAR WITH A COUPON THAT FLOATS 20 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE THE COUPON IS CAPPED AT A 9 INTEREST RATE THE CERTIFICATES HAVE AN AVERAGE LIFE OF THREE YEARS AND WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE 30 MILLION IN SUBORDINATE CLASS B CERTIFICATES WERE PRICED AT PAR WITH A COUPON THAT FLOATS 40 BASIS POINTS ABOVE ONEMONTH LIBOR THE COUPON IS ALSO CAPPED AT 9 THE CERTIFICATES HAVE AN AVERAGE LIFE OF 379 YEARS AND WERE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P SOUTH AUSTRALIAN GOVERNMENT FINANCING AUTHORITY AUSTRALIAN AGENCY 500 MILLION OF FLOATINGRATE EURONOTES DUE APRIL 1996 AT ISSUE PRICE PAR VIA SWISS BANK CORP PAYABLE QUARTERLY FLAT AT THREEMONTH LIBOR FOR DOLLARS GUARANTOR TREASURER OF SOUTH AUSTRALIA THE BORROWER'S SENIOR DEBT OUTSTANDING IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY S&P THE BONDS ARE LISTED IN HONG KONG AND LUXEMBOURG AND ARE DENOMINATED IN 10000 100000 AND 1 MILLION FEES 01 9403230003 940323 BUSINESS BRIEF ICH CORP RESULTS FOR 1993 ARE REVISED FOR 2ND AND 3RD QUARTERS ICH CORP SAID IT HAS RESTATED RESULTS FOR THE SECOND AND THIRD QUARTERS OF 1993 TO CORRECT ACCOUNTING ERRORS IN SOME OF ITS HEALTH REINSURANCE ACTIVITIES AND IN ITS QUARTERLY INCOME TAX PROVISIONS THE LOUISVILLE KY INSURANCE HOLDING COMPANY SAID THE 1993 SECONDQUARTER LOSS WAS REVISED TO 86 MILLION OR 34 CENTS A SHARE COMPARED WITH THE PREVIOUSLY STATED LOSS OF 19 MILLION OR 20 CENTS A SHARE THIRDQUARTER NET INCOME FOR 1993 WAS REVISED TO 1257 MILLION OR 246 A SHARE COMPARED WITH THE PREVIOUSLY STATED EARNINGS OF 133 MILLION OR 261 A SHARE 9403230002 940323 PEPPERAND SALT SAY THOSE IN THE KNOW HOW FAR HE WILL GO HE WON'T GO VERY FAR HIS KEYS IN HIS CAR THE GREATEST MIRACLE OF MODERN MEDICINE IS THE PERSON WHO CAN AFFORD IT BLESSED ARE THE PURE IN HEART FOR THEY ARE NOW AN ENDANGERED SPECIES 9403230001 940323 BIG BUNDLES CONSOLIDATION SWEEPS THE SOFTWARE INDUSTRY SMALL FIRMS IMPERILED AND SO ARE ENTREPRENEURS REASONS ARE ECONOMIC TECHNICAL AND MICROSOFT WORDPERFECT'S MISJUDGMENT BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL IN THE EARLY 1970S BRUCE BASTIAN WAS DIRECTOR OF THE BRIGHAM YOUNG UNIVERSITY MARCHING BAND AND ALAN ASHTON WAS A COMPUTERSCIENCE PROFESSOR WHO GAVE HIM ADVICE ON WRITING A PROGRAM TO SHOW THE EFFECTS OF DIFFERENT CHOREOGRAPHY A FEW YEARS LATER THE TWO MEN FORMED THEIR OWN COMPANY AND IT BEGAN GROWING DRAMATICALLY AFTER THEY INVENTED A BESTSELLING WORDPROCESSING PROGRAM ON MONDAY THEY ACCEPTED A DEAL WORTH ABOUT 600 MILLION TO EACH OF THEM NOVELL INC AGREED TO PAY 14 BILLION IN STOCK FOR THEIR COMPANY WORDPERFECT CORP SUCH A FANTASTIC TALE A STARTUP COMPANY BECOMING A GIANT PLAYER AND MAKING ITS OWNERS NEARBILLIONAIRES IS UNLIKELY TO BE REPEATED IN THE SOFTWARE INDUSTRY AGAIN A SWEEPING CONSOLIDATION IS UNDER WAY WHICH IS LIKELY TO LEAVE THE SOFTWARE BUSINESS LOOKING LIKE THE PUBLISHING INDUSTRY WITH THREE OR FOUR BIG COMPANIES AND HUNDREDS OF SMALLER SHOPS OR WOULDBE AUTHORS GASPING FOR SHELF SPACE JUST IN THE PAST MONTH THE TWO LEADERS IN EDUTAINMENT ELECTRONIC ARTS INC AND BRODERBUND SOFTWARE INC AGREED TO MERGE AS DID THE TWO FOUNDERS OF DESKTOP PUBLISHING ADOBE SYSTEMS INC AND ALDUS CORP A HOST OF SMALLER FIRMS ARE BEING SNAPPED UP BY FARLARGER COMPANIES COMPTON'S MULTIMEDIA PUBLISHING GROUP FOR EXAMPLE WAS TAKEN OVER BY TRIBUNE CO DRIVING THE CONSOLIDATION ARE TECHNICAL AND ECONOMIC FORCES REPRESENTED IN LARGE PART BY A SINGLE COMPANY MICROSOFT CORP LED BY ITS RELENTLESS 38YEAROLD CHAIRMAN WILLIAM GATES MICROSOFT HAS SLASHED PRICES IN NICHE AFTER NICHE INVENTED A NEW WAY OF CHEAPLY SELLING SOFTWARE APPLICATIONS IN BUNDLED FORM AND DEVELOPED NEW KINDS OF OPERATING SYSTEMS THAT SUBSUME ENTIRE SOFTWARE BUSINESSES OR MAKE IT DIFFICULT FOR THEM TO OPERATE ON A STANDALONE BASIS THE COMPANY NOW TAKES IN 37 OF ALL PERSONALCOMPUTER SOFTWARE REVENUE GENERATED WORLDWIDE MANY SOFTWARE COMPANIES ARE STRUGGLING TO SUPPORT GLOBAL MARKETING RESEARCH AND DEVELOPMENT ON INCREASINGLY THIN PROFIT MARGINS TO CUT COSTS AND ACHIEVE THE ECONOMIES OF SCALE NECESSARY TO COMPETE THEY FEEL THEY HAVE TO COMBINE THE BUSINESS IS MOVING INTO THE COMMODITY PHASE SAYS LARRY SONSINI A DIRECTOR OF BOTH NOVELL AND WORDPERFECT IT'S STUNNING HOW QUICKLY THIS INDUSTRY IS CHANGING IT'S REALLY CAUSING MORE THAN I'VE EVER SEEN VERY QUICK REEXAMINATIONS OF BUSINESS STRATEGIES AND ALLIANCES SOFTWARE USED TO BE A GREAT COTTAGE INDUSTRY SAYS MITCHELL KERTZMAN CHIEF EXECUTIVE OFFICER OF POWERSOFT CORP A FASTGROWING PROGRAMMINGTOOLS COMPANY IN THE OLD DAYS YOU COULD FIND A NICHE AND MAKE MISTAKES BECAUSE SOFTWARE WAS FUNDAMENTALLY A TECHNOLOGY BUSINESS NOW MORE AND MORE IT IS A SCALE BUSINESS NOT ONLY YOUR MARKETING BUT EVEN YOUR TECHNICAL INNOVATION HAS TO BE CARRIED OUT ON A CERTAIN SCALE ADDS RON POSNER A VETERAN SOFTWARE EXECUTIVE THE LITTLE GUYS JUST CAN'T COMPETE ON A WORLDWIDE BASIS FOR SHELF SPACE AND MARKET DOLLARS EITHER A SMALL COMPANY FINDS A NICHE OR IT ENDS UP BEING A SUPPLIER TO THE BIG GUYS THE NEW DYNAMICS CALL INTO QUESTION THE INDEPENDENCE OF A HOST OF THE MOST VENERABLE NAMES IN THE SOFTWARE INDUSTRY INCLUDING SYMANTEC INC SOFTWARE PUBLISHING CORP AUTODESK INC AND BORLAND INTERNATIONAL INC EACH OF THESE COMPANIES HAS ONE OR MORE STRONG PRODUCTS BUT NOT ENOUGH CLOUT TO PROTECT ITS MARKETS AND AVOID STAGNATING OR DECLINING SALES THE CHANGES DON'T MEAN THAT A SMALL COMPANY CAN'T PROSPER IN A NICHE BUT IT IS INCREASINGLY DIFFICULT BECAUSE A LITTLE PLAYER HAS TO BE ABLE TO FIERCELY DEFEND ITSELF WITH LOWPRICED PRODUCTS WHILE STILL FINDING THE MONEY FOR MARKETING AND DEVELOPMENT INTUIT INC A HIGHLY SUCCESSFUL PRODUCER OF PERSONALFINANCE SOFTWARE HAS SUCCEEDED IN FENDING OFF AN INVASION BY MICROSOFT BUT STILL FELT COMPELLED TO GAIN SCALE BY ACQUIRING CHIPSOFT INC A MAKER OF TAXPREPARATION SOFTWARE IN A DEAL THAT WILL CAUSE LOSSES FOR THE COMBINED CONCERN FOR UP TO THREE YEARS CONSOLIDATION ALSO ISN'T CURRENTLY STIFLING INNOVATION BECAUSE THERE'S TREMENDOUS PROLIFERATION OF NEW CATEGORIES OF SOFTWARE SUCH AS MULTIMEDIA PROGRAMS SAYS JEFF TARTAR EDITOR OF SOFTLETTER A TRADE PUBLICATION THE CONSOLIDATION IS OCCURRING WITHIN MATURE CATEGORIES SUCH AS WORD PROCESSING DATABASE MANAGEMENT AND SPREADSHEETS BECAUSE ENDUSERS REALLY WANT STANDARDS MORE THAN IN ALMOST ANY OTHER BUSINESS HE SAYS IT'S AS IF THE AUTO INDUSTRY RAN ON SIX DIFFERENT TYPES OF GASOLINE THEN WE'D SEE CONSOLIDATION WORDPERFECT'S MR ASHTON GLOOMILY PREDICTS THAT THERE WILL BE JUST TWO OR THREE COMPANIES THAT WILL BECOME STRONG AND SURVIVE THE LEADING CANDIDATES IN ADDITION TO MICROSOFT ARE NOVELL WHICH DOMINATES THE MARKET FOR SOFTWARE THAT LINKS PERSONAL COMPUTERS INTO NETWORKS AND LOTUS DEVELOPMENT CORP WHICH HAS DEVELOPED A HOTSELLING SUITE OF APPLICATIONS TO COMPETE WITH MICROSOFT'S LOTUS ALSO HAS THE FIRST BESTSELLING WORKGROUP APPLICATION LOTUS NOTES THAT MAKES IT EASIER FOR GROUPS OF PROFESSIONALS TO WORK TOGETHER ON THE NETWORKS CREATED BY NOVELL'S SOFTWARE BUT EVEN NOVELL AND LOTUS WILL HAVE TROUBLE WITHSTANDING MICROSOFT'S MIGHT MICROSOFT IS DEVELOPING OPERATING SYSTEMS THAT TREAT APPLICATIONS AS MERE APPENDAGES MORE LIKE ACCESSORIES THAN STANDALONE PRODUCTS ITS CONTROL OVER SUCH DEVELOPMENT COULD FAVOR ITS OWN STABLE OF BESTSELLING APPLICATIONS WHICH IT WILL TAILOR TO THE NEW TECHNOLOGY MOREOVER MICROSOFT IS USING ITS TREMENDOUS WEALTH TO ENTER NEW MARKETS SUCH AS EDUCATIONAL AND ENTERTAINMENT SOFTWARE BY LITERALLY BUYING SHELF SPACE THE COMPANY GENEROUSLY REWARDS SOFTWARE RETAILERS FOR PROMINENTLY DISPLAYING ITS PRODUCTS NO ONE SPENDS MORE MONEY WITH RESELLERS THAN WE DO SAYS STEVE BALLMER MICROSOFT'S EXECUTIVE VICE PRESIDENT WE WANT BETTER STORE PRESENCE AND WE'LL GET IT MR BALLMER SAYS THERE IS STILL PLENTY OF ROOM FOR SMALL PLAYERS IN SOFTWARE BUT AS A CATEGORY GETS HOT THE LITTLE GUYS BETTER GET BIG FAST LOOKING AT THE ADVANTAGES CONFERRED BY MICROSOFT'S SIZE MR BALLMER CONCLUDES IT'S A GREAT TIME TO BE US NO COMPANY SYMBOLIZES THE GLORY DAYS OF THE INDUSTRY OR ITS CURRENT PROBLEMS BETTER THAN WORDPERFECT THE SAGA OF MESSRS BASTIAN AND ASHTON TELLS OF A TIME IN WHICH SOFTWARE COMPANIES COULD BE RUN BY AMATEURS AND STILL REAP HUGE PROFITS THE COMPANY GOT ITS START IN 1977 AFTER MR BASTIAN WAS FIRED AS DIRECTOR OF THE BYU BAND BECAUSE HE DIDN'T HAVE A PHD THE DISMISSAL PROMPTED HIM TO FINISH A MASTER'S DEGREE IN COMPUTER SCIENCE THEN MR ASHTON ASKED HIM TO BE THE CHIEF PROGRAMMER FOR A SMALL BUSINESS HE WAS STARTING TO BUILD A WORDPROCESSING PROGRAM THE COMPANY'S FIRST PRODUCTS WORKED ON MINICOMPUTERS AND IT WASN'T UNTIL 1982 THAT IT MADE A PROGRAM FOR A PC BY THEN WORDSTAR INTERNATIONAL INC HELD WHAT SEEMED AN INSURMOUNTABLE LEAD IN PC WORD PROCESSING BUT WORDPERFECT GAINED GROUND STEADILY SIMPLY BY ALLOWING ITS PROGRAMMERS TO COME UP WITH NEW FEATURES AND BY RELYING ON DIRECTMAIL SOLICITATIONS WORD OF MOUTH AND GLOWING REVIEWS IN COMPUTER MAGAZINES IN ORDER TO STIMULATE DEMAND THE COST OF DOING BUSINESS WAS LOW AND WAS IT EVER PROFITABLE BY 1987 THE COMPANY HAD TOPPED 100 MILLION IN SALES EARNING A STUNNING PRETAX MARGIN OF 33 AS A BONUS THE COMPANY PAID FOR A TRIP TO HAWAII FOR ALL EMPLOYEES AND THEIR FAMILIES THE SUCCESS CONFIRMED THE FEELING OF MESSRS ASHTON AND BASTIAN THAT SOFTWARE WAS A FIELD FOR BUSINESS AMATEURS BOTH WERE SUSPICIOUS OF PROFESSIONAL MANAGERS STARTING IN 1980 THEY ENTRUSTED THE DAILY OPERATIONS OF THE COMPANY TO WE PETE PETERSON MR BASTIAN'S BROTHERINLAW MR PETERSON HAD RUN A DRAPERY BUSINESS IN OREM UTAH AND HELD A PARTTIME JOB BAGGING GROCERIES WHEN HE WAS HIRED AS WORDPERFECT'S OFFICE MANAGER HE SOON FOUND HIMSELF MAKING KEY DECISIONS AND MANAGING THE FINANCES SINCE THE COMPANY PAID CASH FOR EVERYTHING EVEN NEW BUILDINGS I KEPT CONTROL THROUGH THE POWER OF THE PURSE MR PETERSON SAYS WORDPERFECT'S SOARING SALES IMBUED MR PETERSON WITH OVERCONFIDENCE HE BELIEVED THAT THE COMPANY'S WORD PROCESSORS ESSENTIALLY SOLD THEMSELVES HE SKIMPED ON ADVERTISING CARPED ABOUT THE GREED OF DISTRIBUTORS AND RETAILERS AND BALKED AT DIVERSIFYING INTO OTHER TYPES OF COMPUTER PROGRAMS AS THE COMPANY GREW HE STUCK FIERCELY TO HIS ROOTS BORN IN OREM AFTER THE WAR HE GREW UP WHEN THE TOWN'S BIGGEST EMPLOYER WAS A STEEL MILL AND THE BRIGHTEST KIDS LEFT THE STATE HE WAS PROUD THAT NATIVES MOSTLY MORMONS RAN WORDPERFECT WE WERE TIRED OF SEEING OUTSIDERS COME IN AND RUN OUR BUSINESSES HE SAYS THE DESIRE OF MESSRS ASHTON AND BASTIAN TO RETAIN EXCLUSIVE OWNERSHIP OF WORDPERFECT CREATED STRANGE ANOMALIES IN LIEU OF STOCK THEY PAID ENORMOUS SALARIES MR PETERSON EARNED AS MUCH AS 5 MILLION ANNUALLY I WAS PAID LIKE KARL MALONE HE SAYS REFERRING TO THE UTAH JAZZ FORWARD THE TRADITION OF NEPOTISM CONTINUED EVEN AS WORDPERFECT GREW MR PETERSON OFTEN HIRED SENIOR SALES AND MARKETING EXECUTIVES FROM THE RANKS OF HIS FAMILY FRIENDS AND NEIGHBORS AT THE TIME THE THINKING WAS THAT IF YOU HAD THE RIGHT KIND OF PERSONALITY YOU COULD LEARN THE SKILLS TO DO THE JOB SAYS ROSS WOLFLEY WHOM MR PETERSON HIRED AS A MARKETING EXECUTIVE IN 1986 EVEN THOUGH MR WOLFLEY'S RESUME MAINLY FEATURED A LAW DEGREE AND EIGHT YEARS AS AN AIR FORCE PILOT RELYING SO HEAVILY ON PEOPLE WITH THE SAME VIEWS MIGHT HAVE BEEN A DRAWBACK EXCEPT THAT IN THE SECOND HALF OF THE 1980S WORDPERFECT WAS GROWING SO FAST THAT IT BARELY MATTERED WHO WAS HIRED YOU COULD MAKE MISTAKES BUT NO ONE WOULD NOTICE MR WOLFLEY SAYS BUT BEGINNING IN 1990 PEOPLE STARTED TO NOTICE AND THE REASON WAS MICROSOFT IN MAY OF 1990 MICROSOFT RELEASED A VASTLY IMPROVED VERSION OF A PROGRAM CALLED WINDOWS DESIGNED TO MAKE A DESKTOP COMPUTER MUCH EASIER TO USE CUSTOMERS STAMPEDED TO IT BUYING MILLIONS OF COPIES IN THE FIRST 12 MONTHS ALONG WITH WINDOWS MICROSOFT RELEASED A WORD PROCESSOR TAILORED TO TAKE ADVANTAGE OF THE EASIERTOUSE FEATURES SO STRONG WAS WORDPERFECT'S HOLD ON WORDPROCESSING CUSTOMERS THAT MR ASHTON SAW NO NEED TO RUSH TO MARKET A WINDOWS VERSION OF HIS PRODUCT THE DECISION REFLECTED THE KIND OF MISTAKES MADE BY MANY SOFTWARE COMPANIES THAT HADN'T YET BEEN EXPOSED TO THE RIGORS OF FEROCIOUS MARKETSHARE BATTLES THE VERY IDEA OF COMPETITION WAS FOREIGN TO US ADMITS JOHN LEWIS WORDPERFECT'S EXECUTIVE VICE PRESIDENT WORDPERFECT EVEN SPURNED MICROSOFT'S HELP MICROSOFT GAVE THE COMPANY A NEARLY COMPLETE VERSION OF WINDOWS FIVE MONTHS BEFORE ITS PUBLIC RELEASE BUT WORDPERFECT DID ALMOST NO WORK ON A WINDOWS VERSION OF ITS PRODUCT MR ASHTON ACKNOWLEDGES THAT THIS WAS A MISTAKE ONCE IT TRAILED MICROSOFT IN WINDOWS WORD PROCESSING WORDPERFECT NEVER CAUGHT UP IT WASN'T UNTIL 1992 THAT WORDPERFECT RELEASED A PRODUCT THAT SLOWED MICROSOFT'S ADVANCE IN MARCH 1992 MR PETERSON WAS OUSTED IN PART BECAUSE HE REFUSED TO SPEND MORE HEAVILY ON PROMOTION TO COUNTER MICROSOFT WORDPERFECT THEN BECAME MORE VISIBLE BUT IT STILL WAS RESTRAINED WHEN MICROSOFT BEGAN RUNNING ADS THAT WORDPERFECT THOUGHT CONTAINED FALSEHOODS MR ASHTON OBJECTED IN A POLITE NOTE TO MR GATES WHO IGNORED IT AFTER A YEAR OF HUMILIATION WORDPERFECT SUED MICROSOFT BUT QUICKLY REACHED A SECRET SETTLEMENT BY THE END OF 1992 WORDPERFECT WAS REELING THEN IT WAS STUNNED BY ANOTHER DEVELOPMENT THE BUNDLING BY MICROSOFT OF SEPARATE APPLICATIONS INTO A SINGLE SUITE OR PACKAGE PRICED JUST SLIGHTLY HIGHER THAN AN INDIVIDUAL APPLICATION SALES OF THE MICROSOFT OFFICE SUITE SOARED WORDPERFECT COUNTERED BY ALLYING WITH BORLAND TO PRODUCE ITS OWN SUITE BUT BECAUSE THEY CAME FROM DIFFERENT COMPANIES THE WORDPERFECT/BORLAND APPLICATIONS DIDN'T SHARE COMMON CONTROLS WHEREAS THE PIECES OF MICROSOFT'S SUITE WORKED TOGETHER SMOOTHLY DESPITE RECENTLY REVAMPING WORDPERFECT'S DEAL WITH BORLAND TO GAIN MORE CONSISTENCY AMONG ITS PROGRAMS MR ASHTON CONCEDES OUR BUNDLE WAS HAVING ITS PROBLEMS BUT WORDPERFECT'S BIGGEST PROBLEM AND THAT OF MUCH OF THE REST OF THE INDUSTRY IS THAT MICROSOFT OFFICE DROVE PRICES INTO A TAILSPIN WORDPERFECT'S SALES DECLINED IN 1992 AND GREW MODESTLY IN 1993 WHILE ITS PROFIT MARGINS PLUNGED BY ROUGHLY TWOTHIRDS FROM ITS HEYDAY WHEN WORDPERFECT FINALLY DID LOWER ITS PRICES IT FOUND IT NO LONGER COULD AFFORD TO OFFER ITS CUSTOMERS FREE TELEPHONE SUPPORT A LAUDED PRACTICE THE COMPANY GRUDGINGLY DISCONTINUED EARLY THIS YEAR LOWER PRICES ALSO FORCED WORDPERFECT TO LAY OFF ABOUT A SIXTH OF ITS 6000 EMPLOYEES WITH THE LAYOFFS AND TIGHTER BUSINESS CONTROLS WORDPERFECT MIGHT HAVE BEEN ABLE TO REBOUND BUT A MAJOR TECHNICAL TREND MADE MESSRS ASHTON AND BASTIAN THINK IT WAS TIME TO CASH OUT THE TECHNOLOGY THAT UNDERLIES SOFTWARE IS BASICALLY MAKING IT POSSIBLE TO GIVE OPERATING AND NETWORK SOFTWARE GREATER AND GREATER POWER PUSHING APPLICATIONS INTO THE BACKGROUND MICROSOFT PLANS A SUCCESSION OF NEW OPERATING SYSTEMS WHICH WILL HIT THE MARKET IN 1995 THAT TAKE OVER MANY OF THE TRADITIONAL SERVICES PERFORMED BY APPLICATIONS SUCH AS DATABASE SEARCHES AND ELECTRONIC MAIL THREE WEEKS AGO MR ASHTON PROPOSED THE SALE OF HIS COMPANY TO NOVELL WHICH INTENDS TO USE WORDPERFECT AND APPLICATIONS BOUGHT FROM BORLAND TO CREATE ITS OWN SUITES ALONG WITH NETWORKING VERSIONS MR ASHTON SAYS SOFTWARE IS NO LONGER THE PLACE FOR PEOPLE LIKE HIM I DON'T SEE ANYBODY BEING ABLE TO DO IT THE WAY WE DID HE ADDS MOURNFULLY IT'S NO LONGER A SITUATION WHERE ANYONE CAN PLAY 9403230069 940218 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB WHAT MAKES THE FIRE BURN DEEP INSIDE JAY ROCKEFELLER MAKE NO MISTAKE THERE IS A FIRE RAGING INSIDE THE 6FOOT6 FRAME OF WEST VIRGINIA'S JUNIOR SENATOR IT IS FUELED BY WHAT HE CALLS HIS SUSTAINED RAGE OVER THE COUNTRY'S SYSTEM FOR DELIVERING HEALTH CARE AND HIS PASSION TO CHANGE THAT SYSTEM IF YOU DOUBT THE FIRE'S INTENSITY JUST ASK ROBERT WINTERS THE CHAIRMAN OF PRUDENTIAL INSURANCE CO OF AMERICA AND LEADER OF THE BUSINESS ROUNDTABLE'S HEALTHPOLICY TASK FORCE AFTER THE ROUNDTABLE REBUFFED PRESIDENT CLINTON'S HEALTHCARE REFORM PLAN AND ENDORSED A FAR MORE MODEST ONE OFFERED BY REP JIM COOPER SEN ROCKEFELLER DIDN'T JUST DENOUNCE THE BUSINESS GROUP HE DECLARED THAT THERE IS A SPECIAL PLACE IN HELL FOR MR WINTERS THAT WASN'T A PREMEDITATED ATTACK THE SENATOR SAYS NOW I WASN'T THINKING OF THAT THAT CAME OUT NOR DID THAT BIT OF RHETORICAL EXCESS ADVANCE EITHER THE NATIONAL DEBATE OR SEN ROCKEFELLER'S OWN ADVOCACY OF THE CLINTON HEALTH PLAN BUT IT REFLECTS A PASSION THAT HAS BEEN VISIBLE IN A SERIES OF INFORMAL TALKS WITH SEN ROCKEFELLER OVER THE PAST YEAR AND IT RAISES THE QUESTION EXACTLY WHAT CAN GENERATE THAT KIND OF INTENSITY IN SOMEBODY WHO AS HEIR TO ONE OF AMERICA'S GREAT BUSINESS FORTUNES HAS NEVER HAD MUCH PERSONAL WORRY ABOUT HIS OWN HEALTH SECURITY SEN ROCKEFELLER'S INITIAL EXPLANATIONS DON'T GIVE THE WHOLE STORY HE TALKS OF HIS EXPERIENCE LEADING THE PEPPER COMMISSION A BIPARTISAN CONGRESSIONAL GROUP THAT STRUGGLED FOR TWO YEARS TO SOLVE THE TWIN PROBLEMS OF UNINSURED AMERICANS AND COSTLY LONGTERM CARE HE REFERS TO THE PAINFUL STORY OF ONE INSURANCELESS YOUNG COUPLE WHO TOLD THE COMMISSION HOW THEIR NEWBORN BABY DIED IN THEIR CAR AFTER THEY WERE DENIED ADMISSION TO A PRIVATE HOSPITAL AND SENT TO THE PUBLIC HOSPITAL DOWN THE ROAD BUT AS HE SITS IN HIS OFFICE ONE COLD FEBRUARY NIGHT SEN ROCKEFELLER OFFERS A DEEPER EXPLANATION LIKE ALMOST EVERYONE ELSE IN THE HEALTH DEBATE IT TURNS OUT HE IS DRIVEN BY A SEARING PERSONAL EXPERIENCE THAT WAS THE PAINFUL DEATH OF HIS 83YEAROLD MOTHER BLANCHETTE ROCKEFELLER FROM ALZHEIMER'S DISEASE RECALLING IT NOW ALMOST TWO YEARS LATER NEARLY MOVES HIM TO TEARS MRS ROCKEFELLER WAS OF COURSE WEALTHY AND SOCIALLY PROMINENT BUT STATUS DOESN'T MAKE ALZHEIMER'S ANY LESS UGLY OR PAINFUL LIKE MOST VICTIMS OF THE DISEASE SHE HAD SPURTS OF VIOLENCE AND INCOHERENCE SHE WOULD GET UP AT TWO O'CLOCK IN THE MORNING SHE WOULD FULLY DRESS IN TWO SETS OF DRESSES AND WALK INTO THE KITCHEN AND SAY WHERE'S BREAKFAST' SEN ROCKEFELLER RECALLS LIVING ALONE SHE JUST AS EASILY COULD HAVE TURNED ON THE GAS OR WALKED OFF HER 11TH FLOOR BALCONY SO THE FAMILY HIRED A SQUAD OF NURSES TO GIVE 24HOURADAY CARE STILL MRS ROCKEFELLER CONTRACTED PNEUMONIA AND WAS HOSPITALIZED MY FAMILY HAD BUILT THE GODDAMNED HOSPITAL AND SO THEY JUST COULDN'T GIVE US ENOUGH ATTENTION SEN ROCKEFELLER RECALLS YET THE CARE LEFT HER IN AGONY WITH AN OXYGEN MASK OVER HER FACE AND TUBES POKING INTO HER BODY FINALLY SHE LIFTED HER HEAD LOOKED HER ONLY SON IN THE EYE AND SAID HELP ME HELP ME THAT NIGHT SEN ROCKEFELLER RUSHED HER OUT OF THE HOSPITAL AND RETURNED HER TO HER HOME OF 51 YEARS WHERE SHE WAS CARED FOR UNTIL SHE DIED IN RELATIVE COMFORT TWO WEEKS LATER AFTERWARD SOMETHING NAGGED AT HER SON IF DEATH IS THIS HORRIBLE FOR SOMEBODY WHOSE EVERY NEED CAN BE MET HOW IS IT FOR OTHERS WE'VE GOT ALL THIS MONEY WHAT HAPPENS IF I'M HISPANIC WHAT HAPPENS IF I'M APPALACHIAN WHAT HAPPENS IF I'VE NEVER BEEN TO A HOSPITAL IT JUST IS NOT FAIR SO SEN ROCKEFELLER'S PASSION BURNS ALTHOUGH HE KNOWS COMPROMISES WILL HAVE TO BE MADE HE PLEADS WITH PRESIDENT CLINTON NOT TO COMPROMISE NOW BUT LATER THIS YEAR AFTER THE PUBLIC IS MORE ENERGIZED HE QUIETLY ORGANIZES REGULAR INFORMAL MEETINGS OF THE CRUCIAL FINANCE COMMITTEE TO SEARCH FOR CONSENSUS HE GINGERLY REACHES OUT TO UNLIKELY REPUBLICAN COLLEAGUES SUCH AS IOWA'S CHARLES GRASSLEY IN HOPES THEY'LL EVENTUALLY BE ALLIES HE CRITICIZES REP COOPER'S PLAN AS DANGEROUSLY MINIMALIST BUT UNLIKE THE WHITE HOUSE ALSO PRAISES THE TENNESSEE DEMOCRAT FOR COMPOSING IT LONG BEFORE DOING SO BECAME STYLISH SEN ROCKEFELLER MAY BE NAIVE HE THINKS A PLAN WITH ALL THE BASIC CLINTON COMPONENTS UNIVERSAL COVERAGE ALLIANCES PREMIUM CAPS AN EMPLOYER MANDATE WILL PASS WHETHER THAT'S TRUE OR NOT THE PASSION OF JAY ROCKEFELLER HELPS EXPLAIN WHY IT'S STILL A GOOD BET SOMETHING SIGNIFICANT WILL HAPPEN THIS YEAR SEE RELATED LETTERS LETTERS TO THE EDITOR IN MEDICAL REFORM FIRST DO NO HARM WSJ MARCH 23 1994 9402160019 YY94 MM03 9403230062 940218 REVIEW & OUTLOOK EDITORIAL LIBERALISM STRIKES OUT THAT STRANGE SOUND YOU HEAR IN THE WINTER SKIES ABOUT THREESTRIKESANDYOU'REOUT IS THE HONKS OF LIBERAL WONKS AS THEY ARE DRIVEN OFF THE CRIME ISSUE UNTIL RECENTLY THEY'D GROWN CONTENT OCCUPYING THE HALLWAYS OF THE US CRIMINAL JUSTICE SYSTEM FILING LAWSUITS INTO AN UNDERSTANDING JUDICIARY FOR 30 YEARS AND PRETTYING UP THE CONSTITUTION WITH PENUMBRAS AND OTHER ELABORATE FRETWORK POLICE WORK BECAME PROCEDURALISM WITH INTRICACIES THAT WERE MASTERED BY YOUNG PROSECUTORS DOING DEALS FOR CHEAP PLEAS LAUGHING WHILE THEY WORKED CRIMINALS HIT THEIR VICTIMS HARDER AND A LOT AND OFTEN KILLED THEM IF YOU NEED NUMBERS THE ARRESTTOWHACK RATIO IS DEPICTED IN THE ACCOMPANYING CHARTS COMPILED BY THE FBI REMEMBER THAT WONDERFUL WORD THAT THE DRIVEBY SHOOTERS COINED FOR THE SUDDENLY DEAD IN LA MUSHROOMS THEN THIS PAST NOVEMBER THE VOTERS OF THE STATE OF WASHINGTON GAVE 76 SUPPORT TO A HOMEGROWN INITIATIVE CALLED THREE STRIKES AND YOU'RE OUT THAT IS AFTER THE THIRD MAJOR FELONY THE THUG IS LIFTED OUT OF THE COMMUNITY FOREVER KEEP IN MIND THAT THREE STRIKES WASN'T SOMETHING THAT JESSE HELMS INTRODUCED IT WAS AN INITIATIVE FIRST PROPOSED IN A SOPHISTICATED LIBERAL STATE IN THE NORTHWEST CORNER OF THE COUNTRY NOT SOME BAYOU IT PASSED EASILY AND MIGRATED QUICKLY THEN BILL CLINTON GRABBED IT AND SHOVED IT INTO THE FEDERAL ANTICRIME BILL BUT NOW A GREAT LIBERAL CHORUS HAS FORMED UP TO THUNDER AGAINST THE IDEA THE LOW AND SOMBER VOICES OF THE FIRST CHOIR WARN THAT PUTTING YOUNG CRIMINALS IN PRISON FOR 50 YEARS WILL BE TOO EXPENSIVE STRIKING THE PROPOSAL WITH THEIR POCKET CALCULATORS THEY ESTIMATE THAT IT COSTS 25000 A YEAR TO IMPRISON AND SO 50 X 25000 X NCRIMINALS IS TOO MUCH WE'LL RETURN LATER TO THIS SUDDEN INTEREST IN BEING FISCALLY CORRECT THEN THERE IS A SECOND CHOIR OF SOPRANOS SINGING THAT THE SENATE ANTICRIME BILL IS A MINDLESS GET TOUGH MEASURE BY SPOOKED WASHINGTON POLITICIANS WE HOPE THEY'RE SCARED THE PEOPLE IN NEARBY ANACOSTIA SOUND PRETTY FRIGHTENED TOO THE CHOIR SINGS THAT MANDATORY SENTENCES FOR FIRSTTIME DRUG OFFENDERS ARE CLOGGING THE SYSTEM NO DOUBT TRUE THAT SENTENCING GUIDELINES TURN JUDGES INTO ROBOTS THAT INTERVENTION AND PREVENTION PROGRAMS WERE NEVER ADEQUATELY FUNDED AND SO ON WE HAVE BEEN IN AND OUT OF THESE ARGUMENTS WITH LIBERAL CRIMINALJUSTICE SPECIALISTS FOR YEARS ESPECIALLY REMEMBERED ARE THE DEBATES AFTER ATTORNEY GENERAL ED MEESE BEGAN CALLING FOR SOME CONTRACTION OF THE EXPANSIVE REQUIREMENTS OF THE EXCLUSIONARY RULES ON POLICE ARRESTS AND SEARCHES FOR SUGGESTING THIS MR MEESE AND HIS CONSERVATIVE SUPPORTERS WERE VILIFIED AS COLDHEARTED OR STUPID THE LEADERSHIP OF VARIOUS POLICE ASSOCIATIONS OR UNIONS WAS BROUGHT FORWARD TO SAY THAT REALLY ALL THESE PROCEDURES THE PAPERWORK FOR A NEW YORK CITY ARREST CAN CONSUME AN ENTIRE WORKSHIFT WERE NOT A PROBLEM WE GUESS NOT WITH SO MANY WELLPAID COPS FILLING OUT FORMS BEHIND DESKS RATHER THAN RISKING THE STREETS TO CATCH THE 4587 OF CRIMINALS WHO AREN'T ARRESTED WE WERE TOLD THAT IN FACT THE 25YEAR EDIFICE OF LITIGATION THOUGH AT TIMES ARDUOUS HAD NONETHELESS BROUGHT MORE EQUAL JUSTICE UNDER THE LAW NOTIONS OF WHAT CONSTITUTES JUSTICE HAVE SERVED AS INTERESTING DEBATE FODDER FOR CENTURIES BUT THERE HAS NEVER BEEN ANY SERIOUS CHALLENGE TO THE PROPOSITION THAT A GOVERNMENT'S MOST FUNDAMENTAL RESPONSIBILITY TO ITS CITIZENS IS TO PROVIDE FOR THEIR SECURITY PEOPLE VOLUNTARILY CONVEY ENORMOUS POWERS AND AUTHORITY OVER THEIR BEHAVIOR TO PUBLIC OFFICIALS MERE PEOPLE REALLY IN RETURN FOR THE GUARANTEE OF A SECURE CIVIL ORDER WHAT HAS HAPPENED WITH THREE STRIKES IS THAT THE PEOPLE HAVE WITHDRAWN THEIR CONSENT TO LET THEIR COMMUNITIES BE FURTHER GOVERNED OR AT LEAST ADMINISTERED BY A LIBERAL ETHOS THAT HAD BEEN GIVEN 30 YEARS TO INTRODUCE ITS OWN IDEAS OF FAIRNESS AND JUSTICE WHILE ALSO ENSURING PUBLIC SAFETY HAD LIBERALISM SUCCEEDED HAD THERE NOT BEEN SO MANY ENDLESS STORIES OF LITTLE GIRLS SHOT DEAD IN GRADESCHOOL PLAYGROUNDS DURING GANG GUNFIGHTS THERE WOULD BE NO THREE STRIKES INITIATIVE NO CRIME BILL AND NO SUCH DEVASTATING POLITICAL ISSUE FOR INCUMBENT LIBERALS THREE STRIKES IS A ROUGH BUT PROPER RESPONSE TO A MASSIVE POLITICAL AND PHILOSOPHICAL FAILURE OH YES THE POCKETCALCULATOR WORRIES ABOUT OVERLOADING THE PRISONS THE OLD GUYS GET TO GO HOME SEE RELATED LETTER LETTERS TO THE EDITOR IT CAME FROM THE SWAMP AND INVADED CONGRESS WSJ MARCH 23 1994 9402180078 YY94 MM03 9403230061 940208 INTERNATIONAL AFTER YEARS OF TRACKING CHINA'S CHANGE JESUIT SCHOLARS PLAN TO LEAVE HONG KONG BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG AT A TIME WHEN CHINA HAS THROWN OPEN ITS ECONOMY AND EMBRACED TRANSFORMATION THE REV MICHEL MASSON IS AN ANACHRONISM TOGETHER WITH ANOTHER JESUIT SCHOLAR THE GRAYING FRENCH PRIEST SCOURS CHINESELANGUAGE NEWS CLIPPINGS FOR DETAILS OF CHANGE IN CHINA INFORMATION THEY GLEAN FROM 21 NEWSPAPERS AND FOUR DOZEN MAGAZINES IS COMPILED INTO A THIN BIWEEKLY NEWSLETTER CHINA NEWS ANALYSIS IT IS SAYS ONE SUBSCRIBER THE CHINA WATCHER'S BIBLE BUT KNOWING CHINA DOESN'T MEAN TRUSTING IT SO THIS SUMMER THE TWO JESUIT PRIESTS WILL SHUT DOWN THEIR SPARTAN HONG KONG OFFICE LAY OFF THEIR LOCAL STAFF AND MOVE TO TAIWAN IN PART THE REASONS ARE PROFESSIONAL A CATHOLIC UNIVERSITY LAW SCHOOL THERE HAS DECIDED TO ESTABLISH A RESEARCH CENTER ON CHINA AND CHINA NEWS ANALYSIS HAS BEEN OFFERED A HOME IN LARGER PART THOUGH THE REASONS ARE POLITICAL IN 1997 HONG KONG WILL REVERT TO CHINA THE INTELLECTUAL HEIRS OF THE JESUITS WHO ARRIVED IN CHINA MORE THAN FOUR CENTURIES AGO AREN'T WAITING TO FIND OUT WHETHER CHINESE HISTORY WILL REPEAT ITSELF AND ONCE AGAIN THEY WILL BE FORCED OUT THAT COULD MAKE THE JESUITS UNEASY FATHER MASSON ADDS CHINA NEWS ANALYSIS' DECISION TO LEAVE HONG KONG HIGHLIGHTS THE SENSE OF UNEASE ABOUT FREEDOM OF INFORMATION IN POST1997 HONG KONG BEIJING HAS PROMISED TO MAINTAIN THE TERRITORY'S EXISTING CUSTOMS AND WAY OF LIFE FOR 50 YEARS BUT BEIJING ALREADY IS SHOWING SIGNS OF BEING UNCOMFORTABLE WITH OPEN DEBATE ON SOME SUBJECTS PARTICULARLY CHINA WHEN HONG KONG'S FOREIGN CORRESPONDENTS' CLUB RECENTLY DECIDED TO SCREEN TWO DOCUMENTARIES ABOUT THE LIFE OF CHINA'S LATE CHAIRMAN MAO TSETUNG FOR INSTANCE THE CHINESE GOVERNMENT'S LOCAL ARM TRIED TO PERSUADE THE JOURNALISTS TO CALL OFF THE SHOWING APPARENTLY FEELING THE POLITICAL PRESSURE HONG KONG'S GOVERNMENT SUGGESTED THE CLUB WOULD NEED A LICENSE FOR THE SCREENING THE CLUB IGNORED BOTH REQUESTS AND SHOWED THE FILMS TO A STANDINGROOMONLY CROWD OF 300 MORE THAN OTHER PUBLICATIONS CHINA NEWS ANALYSIS HAS A HISTORY THAT MIGHT BRING TROUBLE WITH BEIJING THE HUNGARIAN JESUIT PRIEST WHO FOUNDED THE PUBLICATION LASZLO LADANY WAS A BITTER OPPONENT OF COMMUNISM HE HAD AN ANTICOMMUNIST TWIST SAYS FATHER MASSON BUT FOR GOOD REASONS FATHER LADANY LIVED IN CHINA FROM 1940 TO 1949 AND WAS FORCED TO FLEE TO HONG KONG WHEN MAO'S COMMUNISTS CAME TO POWER IN 1949 HE PUT HIS CHINESE EXPERTISE TO USE FOUNDING CHINA NEWS ANALYSIS IN 1953 THEN SPENT THE NEXT THREE DECADES UNRAVELING THE IDEOLOGICAL AND SOCIAL UPHEAVAL IN THE NEWSLETTER HE DISCLOSED THE ENORMOUS STARVATION THAT FOLLOWED THE GREAT LEAP FORWARD IN THE LATE 1950S AND HE MONITORED 14 RADIO BROADCASTS A DAY TO REPORT ON THE CHAOS OF THE CULTURAL REVOLUTION A DECADE LATER WHEN A TEAM OF FOUR JESUITS INCLUDING FATHER MASSON 57 YEARS OLD WHO HAS A HARVARD DOCTORATE IN THE INTELLECTUAL HISTORY OF MODERN CHINA AND HIS COLLEAGUE THE REV YVES NALET 46 TOOK THE HELM A DECADE AGO AFTER FATHER LADANY RETIRED THEY TEMPERED THE PARTISAN APPROACH AND FOCUSED MORE ON ECONOMIC CHANGE THE APPROACH WORKS EVEN AT 200 A YEAR CIRCULATION HAS DOUBLED NOW TO ABOUT 700 INCLUDING SOME SUBSCRIBERS IN CHINA FATHER MASSON SAYS HE WOULDN'T FEEL SECURE IN A CHINARULED HONG KONG CATHOLICS REMAIN PERSECUTED IN CHINA BISHOP SU ZHIMING A 61YEAROLD ROMAN CATHOLIC LEADER WAS RELEASED LAST THURSDAY AFTER TWO WEEKS' DETENTION FOLLOWING A MEETING HE HAD WITH A US CONGRESSMAN TWO OTHER PRIESTS ARRESTED LAST MONTH ALSO WERE RELEASED FATHER MASSON SAYS THE MOVE WON'T AFFECT WHAT HE CONSIDERS THE OBJECTIVITY OF CHINA NEWS ANALYSIS WE REPORT ON WHAT THE CHINESE ARE SAYING INCLUDING THEIR OWN CRITICISMS HE SAYS SEE RELATED LETTER LETTERS TO THE EDITOR JESUIT EDITOR'S FOCUS WAS ALWAYS OBJECTIVE WSJ MARCH 23 1994 9402080012 YY94 MM03 9403220149 940322 COMMODITIES WORLD OIL PRICES RISE IN RALLY LED BY BUYERS ENTERING MARKET IN ADVANCE OF OPEC MEETING BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL WORLD OIL PRICES RALLIED IN THE RUN UP TO THE MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES THAT BEGINS FRIDAY IN GENEVA ALTHOUGH LITTLE CHANGE IN OPEC'S LEVEL OF CRUDE OIL PRODUCTION IS EXPECTED TO RESULT FROM THE MEETING MORE BUYERS ENTERED THE MARKET YESTERDAY JUST IN CASE THE OIL MINISTERS SHOULD DECIDE ON MAJOR OUTPUT AS OIL PRICES ROSE BREAKING THROUGH PSYCHOLOGICALLY IMPORTANT LEVELS TECHNICAL FACTORS CONTRIBUTED TO THE RALLY TRADERS SAID WHATEVER THE REASONS PRICES SURGED IN LATE TRADING ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR APRIL DELIVERY WHICH HAD BEEN TRADING IN A RANGE OF 14 TO 15 A BARREL SETTLED YESTERDAY AT 1537 UP 49 CENTS FOR THE DAY SOME OF THE PRICING VOLATILITY MAY HAVE BEEN DUE TO TODAY'S EXPIRATION OF THE APRIL CRUDE CONTRACT BUT MAY CRUDE ALSO ROSE 39 CENTS YESTERDAY SETTLING AT 1523 A BARREL THE RALLY IN US FUTURES TRADING LED TO SIMILAR GAINS IN LONDON FUTURES PRICES OF BRENT BLEND CRUDE ON THE INTERNATIONAL PETROLEUM EXCHANGE ENDED TRADING BETWEEN 33 CENTS AND 35 CENTS A BARREL HIGHER THAN FRIDAY'S SETTLEMENT LEVELS MANY OIL TRADERS AND ANALYSTS EXPECT THE RALLY TO BE SHORTLIVED THE OIL MARKET WAS SAID TO HAVE DRAWN SOME STRENGTH YESTERDAY FROM A WEEKEND REPORT IN A KUWAIT NEWSPAPER THAT OPEC MAY REDUCE ITS PRODUCTION BY 700000 BARRELS A DAY FOR THE SECOND QUARTER WITH NONOPEC PRODUCERS CONTRIBUTING CUTS OF AN ADDITIONAL 300000 BARRELS BUT OIL TRADERS AND ANALYSTS GENERALLY ASSUME THAT OPEC IS UNLIKELY TO CHANGE ITS LEVEL OF OUTPUT NOW NEAR 25 MILLION BARRELS A DAY FOR THE SECOND QUARTER EVEN THOUGH DEMAND DECLINES SEASONALLY DURING THAT PERIOD AS A RESULT THE PRICE OF PETROLEUM IS WIDELY EXPECTED TO DECLINE AGAIN IT WILL DROP LIKE A ROCK IN A POND SAID TOM CURTIS DIRECTOR OF ENERGY RESEARCH AT PEGASUS ECONOMETRIC GROUP GRAINS & SOYBEANS PRICES OF MOST GRAIN FUTURES CONTRACTS SLIPPED LOWER AMID PROFITTAKING AND A LACK OF FRESH NEWS IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MAY DELIVERY DROPPED ONE CENT A BUSHEL TO SETTLE AT 28575 A BUSHEL SOYBEAN PRICES REMAIN UNDER PRESSURE DUE TO PROSPECTS FOR A RECORD SOYBEAN HARVEST IN SOUTH AMERICA ABOUT 20 OF THE HARVEST THERE IS COMPLETE IN THE US MEANWHILE FARMERS IN TEXAS AND THE MISSISSIPPI DELTA REGION ARE BEGINNING TO PLANT CORN FARMERS AS FAR NORTH AS MISSOURI ARE APPLYING FERTILIZER TO THEIR FIELDS IN ANTICIPATION OF PLANTING SOON PRECIOUS METALS FUTURES PRICES ENDED MIXED CONTINUING POLITICAL TENSIONS IN SOUTH AFRICA HELPED BOOST PLATINUM PRICES SOUTH AFRICA WHERE NATIONAL ELECTIONS ARE TO TAKE PLACE LATE NEXT MONTH IS THE WORLD'S SECOND LARGEST PRODUCER OF PLATINUM SOME TRADERS FEAR A CUTOFF IN SUPPLY IN THE EVENT THAT STREET UNREST BREAKS OUT NATIONWIDE AROUND ELECTION TIME ON THE NEW YORK MERCANTILE EXCHANGE THE ACTIVE APRIL PLATINUM CONTRACT CLOSED AT 403 AN OUNCE UP 70 CENTS SOME ANALYSTS WERE SKEPTICAL HOWEVER THAT POLITICAL TENSIONS COULD SPILL OVER INTO THE MINING REGIONS HISTORICALLY WE HAVE SEEN THE METAL LEAVE THE COUNTRY IN FAR WORSE CONDITIONS SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST WITH MERRILL LYNCH IN NEW YORK BUT WITH THE ELECTION FIVE WEEKS AWAY THE MARKET IS STILL CAUTIOUS AND NERVOUS ABOUT THE SITUATION MEANWHILE THE GOLD FUTURES MARKET REMAINED CHOPPY WITH THE MARKET UNCERTAIN ABOUT THE NEXT INTERESTRATE MOVES BY THE FEDERAL RESERVE HIGHER RATES TEND TO HURT GOLD PRICES AS THE ATTRACTIVENESS OF HOLDING GOLD AS A NONINTERESTBEARING ASSET DECLINES ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY CLOSED DOWN 130 TO 38630 AN OUNCE WHILE SILVER FOR MAY DELIVERY EDGED UP A HALFCENT TO 5442 AN OUNCE 9403220148 940322 MET LIFE AND TRAVELERS ARE DISCUSSING COMBINATION OF HEALTHCARE OPERATIONS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK METROPOLITAN LIFE INSURANCE CO AND TRAVELERS INC ARE IN TALKS TO COMBINE THEIR HEALTHCARE BUSINESSES A MOVE THAT WOULD CREATE ONE OF THE NATION'S LARGEST HEALTHINSURANCE AND MANAGEDCARE OPERATIONS ALTHOUGH DETAILS HAVE YET TO BE WORKED OUT THE COMBINATION WOULD LIKELY TAKE THE FORM OF A JOINT VENTURE OR STRATEGIC ALLIANCE RATHER THAN AN OUTRIGHT SALE OF ONE BUSINESS TO ANOTHER SAY PEOPLE FAMILIAR WITH THE DISCUSSIONS EVENTUALLY HOWEVER THE TWO COMPANIES MIGHT CONSIDER A PUBLIC STOCK OFFERING IN THE VENTURE BOTH COMPANIES DECLINED TO COMMENT BESIDES BEING AMONG THE LARGEST HEALTH INSURERS MET AND TRAVELERS ALSO OPERATE MANAGEDCARE NETWORKS SUCH AS HEALTH MAINTENANCE ORGANIZATIONS WHICH PROVIDE MEDICAL SERVICES TO MEMBERS IN RETURN FOR AN ANNUAL FEE MANAGEDCARE NETWORKS ARE CONSIDERED THE FUTURE OF HEALTH CARE BECAUSE THEY OFFER MORE AFFORDABLE RATES THAN REGULAR HEALTH INSURANCE BUT HEALTHCARE EXPERTS SAY A NETWORK CAN SUCCEED ONLY IF IT IS ONE OF THE BIGGEST IN ITS MARKET IT IS A BUSINESS VERY MUCH BASED ON CRITICAL MASS AND LOCAL MARKET DOMINANCE SAID LARRY MAYEWSKI SENIOR VICE PRESIDENT OF AM BEST CO BY COMBINING THEIR BUSINESSES MET AND TRAVELERS HOPE TO BOOST THEIR MARKET SHARES IN SPECIFIC CITIES WHICH WOULD MAKE IT EASIER TO GET VOLUME DISCOUNTS FROM DOCTORS AND HOSPITALS THAT IN TURN WOULD ATTRACT MORE CUSTOMERS SPECIFICALLY BIG CORPORATIONS TO THEIR NETWORKS RIGHT NOW THE TWO COMPANIES ARE SMALLER PLAYERS IN MANAGED CARE COMPARED WITH SUCH INDUSTRY GIANTS AS PRUDENTIAL INSURANCE CO OF AMERICA CIGNA CORP AND AETNA LIFE & CASUALTY CO THE COMBINATION WOULD COME AT A TIME OF INTENSE CONSOLIDATION IN THE HEALTHCARE INDUSTRY EARLIER THIS MONTH FHP INTERNATIONAL CORP AGREED TO ACQUIRE TAKECARE INC FOR ABOUT 11 BILLION IN CASH AND SECURITIES IN A BID TO CREATE ONE OF THE NATION'S LARGEST HMOS WITHIN THE LAST YEAR COLUMBIA HOSPITAL CORP NOW COLUMBIA/HCA HOSPITAL CORP PURCHASED GALEN HEALTHCARE INC AND HCAHOSPITAL CORP OF AMERICA ITS LARGEST COMPETITORS AMONG FORPROFIT HOSPITAL CHAINS ALSO LAST YEAR MERCK & CO THE COUNTRY'S BIGGEST PHARMACEUTICAL COMPANY BOUGHT MEDCO CONTAINMENT SERVICES A MAILORDER DRUG COMPANY HEALTH INSURANCE COMPANIES HAVE ALSO BEEN EXPLORING WAYS TO GET BIGGER LAST YEAR TRAVELERS AND NEW YORK LIFE INSURANCE CO DISCUSSED A MERGER OF THEIR HEALTHCARE OPERATIONS BUT TALKS FELL THROUGH IN THE DEBATE OVER HEALTHCARE REFORM BOTH TRAVELERS AND MET HAVE SIDED WITH PRUDENTIAL CIGNA AND AETNA TO SUPPORT HMOS AND OTHER FORMS OF MANAGED CARE OTHER HEALTH INSURERS WITH LESS OF A PRESENCE IN MANAGED CARE HAVE PREFERRED A MORE GRADUAL APPROACH THAT WOULD PROTECT THE USUAL HEALTHINSURANCE BUSINESS WHICH PAYS A CLAIM EVERY TIME A DOCTOR OR HOSPITAL PROVIDES A SERVICE HMOS AND OTHER MANAGEDCARE ORGANIZATIONS GET A FLAT ANNUAL FEE FOR EVERY PATIENT ENROLLED IN THEIR NETWORK SINCE 1986 ENROLLMENT IN HMOS HAS SOARED TO 45 MILLION PEOPLE FROM 257 MILLION TRAVELERS AND MET RANK FIFTH AND SIXTH RESPECTIVELY IN HEALTHINSURANCE PREMIUM INCOME ACCORDING TO AM BEST REFLECTING THEIR LARGE PRESENCE IN THE TRADITIONAL HEALTHINSURANCE MARKET BUT WHILE PRUDENTIAL CIGNA AND AETNA RANK IN THE TOP 10 AMONG HMO COMPANIES NEITHER TRAVELERS NOR MET CRACK THE TOP 20 ACCORDING TO THE GROUP HEALTH ASSOCIATION OF AMERICA BOTH COMPANIES ARE BIGGER IN FORMS OF MANAGEDCARE NETWORKS OTHER THAN HMOS TRAVELERS AND MET LIKE OTHER HEALTH INSURERS ARE INTERESTED IN PERSUADING THEIR TRADITIONAL INSURANCE CUSTOMERS TO JOIN THEIR MANAGEDCARE NETWORKS AT THE END OF LAST YEAR PRIMERICA CORP THE PARENT OF THE SMITH BARNEY SHEARSON INC BROKERAGE COMPANY BOUGHT TRAVELERS CORP TO CREATE TRAVELERS INC BASED IN NEW YORK 9403220147 940322 LETTERS TO THE EDITOR WHY WAS MUD THROWN ON MY BAR MITZVAH I AM EXTREMELY DISTURBED AND ANGRY BECAUSE OF YOUR MUDSLINGING ARTICLE ABOUT MY FATHER HAIM DABAH OF GITANO GROUP INC PAGE ONE FEB 18 THIS WAS PURE TABLOID JOURNALISM I'LL PROVE IT TELLING YOU ONLY WHAT I KNOW FIRSTHAND WHICH IS THAT IN RELATION TO MY BAR MITZVAH ONE THE WAY YOUR REPORTER TIES IN THIS LIE ABOUT MY BAR MITZVAH THAT'S WHAT IT IS A LIE NOTHING BUT MUDSLINGING SINCE IT IS OF LITTLE OR NO RELEVANCE TO THE FALL OF GITANO IS BY HAVING THE BAR MITZVAH HAPPEN JUST A FEW MONTHS BEFORE CUSTOMS AGENTS COME CALLING IN DECEMBER 1991 THE BAR MITZVAH WAS IN MARCH 1990 CLOSER TO TWO YEARS THAN TO A FEW MONTHS TWO THERE WERE 450 PEOPLE NOT 1000 AT MY BAR MITZVAH THREE WHAT GROUP OF DANCERS WAS FLOWN IN BY THE FAMILY FROM BRAZIL THE DANCERS WERE ALL NEW YORKERS FOUR IT WASN'T LESTER LANIN'S ORCHESTRA IT WAS STEVEN SCOTT'S FIVE AND THIS ONE UPSETS ME THE MOST THE REPORTER WROTE THE FLOURISH THAT BROUGHT GASPS WAS A GLASSENCLOSED WIND TUNNEL FILLED WITH ONEDOLLAR BILLS EACH CHILD AT THE PARTY WAS ESCORTED INTO THE CHAMBER TO GRAB AS MANY FISTSFUL OF DOLLARS AS HE OR SHE COULD THIS IS ANOTHER OUTRIGHT LIE TOLD JUST TO CREATE A FALSE IMAGE OF MY FATHER THERE WAS NO REAL MONEY INVOLVED THIS WAS A COMMON GAME PLAYED THE SAME AT ANY OTHER PARTY JUST AS WELL AS MINE USING MONOPOLYTYPE MONEY I HAVE KEPT ONE AS A MEMENTO AND HAVE ENCLOSED IT ALSO YOU MADE IT SOUND LIKE THIS WAS A MAIN ATTRACTION BUT THE GAME WAS ONE OF SEVERAL IN A CHILDREN'S GAME ROOM WHICH MOST ADULTS DIDN'T EVEN SEE I STILL DON'T KNOW WHY YOU EVEN WROTE ABOUT MY BAR MITZVAH WHICH WAS A SPECIAL MOMENT IN MY LIFE BUT AT LEAST YOU SHOULD HAVE VERIFIED THE FACTS AND WRITTEN THE TRUTH 9403220146 940322 WHO'S NEWS WELLSTEAD INDUSTRIES INC WELLSTEAD INDUSTRIES INC GREENWICH CONN MARNE OBERNAUER SR WAS ELECTED A DIRECTOR OF THIS DISTRIBUTOR OF INDUSTRIAL SAFETY SUPPLIES INCREASING THE BOARD TO FIVE MEMBERS MR OBERNAUER IS CHAIRMAN OF THE EXECUTIVE COMMITTEE AT DEVON GROUP INC A STAMFORD CONN PUBLISHING AND PRINTING COMPANY 9403220144 940322 WHO'S NEWS GENERAL AUTOMATION INC GENERAL AUTOMATION INC ANAHEIM CALIF JOHN R DONNELLY WAS NAMED VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER SUCCEEDING DONALD RUTHERFORD 54 YEARS OLD WHO RESIGNED MR DONNELLY 60 PREVIOUSLY WAS CHIEF FINANCIAL OFFICER OF INFODETICS CORP GENERAL AUTOMATION DESIGNS COMPUTER SYSTEMS 9403220143 940322 WHO'S NEWS BRODERBUND SOFTWARE INC BRODERBUND SOFTWARE INC NOVATO CALIF WILLIAM M MCDONOUGH 37 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS CONSUMER SOFTWARE COMPANY HE WAS PREVIOUSLY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HE SUCCEEDS ED AUER 61 WHO SET HIS RETIREMENT PLANS LAST OCTOBER AFTER THE COMPLETION OF THE PREVIOUSLY ANNOUNCED ACQUISITION OF BRODERBUND BY ELECTRONIC ARTS INC MR MCDONOUGH WILL REPORT TO ELECTRONIC ARTS' PRESIDENT AND CHIEF EXECUTIVE OFFICER DOUG CARLSTON 9403220141 940322 WHO'S NEWS COMTEK RESOURCES INC COMTEK RESOURCES INC DENVER HUNTER S SWANSON 50 YEARS OLD WAS NAMED A DIRECTOR OF THIS OIL AND NATURAL GAS COMPANY SUCCEEDING JIM ELLERTON 49 WHO RESIGNED DR SWANSON IS PRESIDENT COFOUNDER AND DIRECTOR OF SDDS INC A CLOSELY HELD SOLIDWASTE LANDFILL COMPANY 9403220140 940322 WHO'S NEWS TENNECO INC TENNECO INC HOUSTON JEANPIERRE ROSSO 53 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE J I CASE CONSTRUCTION AND FARM EQUIPMENT DIVISION OF THIS DIVERSIFIED MANUFACTURING AND NATURALGAS PIPELINE COMPANY MR ROSSO FORMERLY PRESIDENT OF HONEYWELL INC'S HOME AND BUILDING CONTROL BUSINESS SUCCEEDS EDWARD J CAMPBELL 66 WHO WILL RETIRE AS PRESIDENT AS CHIEF EXECUTIVE OFFICER HE SUCCEEDS DANA MEAD 58 WHO REMAINS CHAIRMAN OF CASE AND PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PARENT 9403220139 940322 WHO'S NEWS HILLENBRAND INDUSTRIES INC HILLENBRAND INDUSTRIES INC BATESVILLE IND JAMES R YARTER FORMERLY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF YARTER SERVICES INC WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BLOCK MEDICAL INC A UNIT OF THIS MAKER OF MEDICAL PRODUCTS AND CASKETS HE SUCCEEDS EMIL H SOIKA WHO RESIGNED TO PURSUE OTHER INTERESTS 9403220138 940322 WHO'S NEWS COASTAL CORP COASTAL CORP HOUSTON ROBERT C HART WAS NAMED TO THE NEW POSITIONS OF VICE PRESIDENT OF THIS ENERGY HOLDING COMPANY AND PRESIDENT OF ITS COGENERATION AND PRIVATE ELECTRICITY GENERATION UNIT COASTAL POWER PRODUCTION CO WHICH HAS RELOCATED TO HOUSTON FROM ROANOKE VA MR HART 49 YEARS OLD WAS PRESIDENT OF HART ASSOCIATES INC AN ENERGY DEVELOPMENT CONCERN BASED IN WASHINGTON 9403220137 940322 RAWSTEEL PRODUCTION DECLINED 2 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 2 LAST WEEK TO 1854000 TONS FROM 1892000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 44 FROM THE 1776000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 90 OF ITS CAPABILITY LAST WEEK COMPARED WITH 919 THE PREVIOUS WEEK AND 84 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITYUTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9403220136 940322 WHO'S NEWS VALSPAR CORP VALSPAR CORP MINNEAPOLIS RICHARD M ROMPALA 47 YEARS OLD FORMERLY GROUP VICE PRESIDENT COATINGS AND RESINS OF PPG INDUSTRIES INC WAS NAMED PRESIDENT OF THIS COATINGS MANUFACTURER AND A MEMBER OF ITS BOARD AS PRESIDENT MR ROMPALA SUCCEEDS ROBERT E PAJOR 57 WHO WAS NAMED TO THE NEW POST OF VICE CHAIRMAN THE COMPANY ALSO CREATED AN OFFICE OF THE CHAIRMAN WHICH CONSISTS OF MESSRS ROMPALA AND PAJOR AS WELL AS THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER ANGUS WURTELE 59 THERE ARE NOW 11 BOARD MEMBERS 9403220135 940322 TRACKING TRAVEL BY MICHAEL J MCCARTHY BARGAINBASEMENT AIR FARES ARE APPEARING WITH FEWER STRINGS ATTACHED UNTANGLING A SEVERALYEAR BUILDUP OF RESTRICTIONS ON SUPERSAVER FARES A FEW MAJOR AIRLINES ARE DROPPING SOME OF THE MOST IRRITATING SATURDAYNIGHT STAYOVERS LENGTHY ADVANCEPURCHASE PERIODS AND NONREFUNDABLE TICKETS THIS IS THE BEST NEWS THE BUSINESSTRAVEL MARKET HAS HAD IN A LONG TIME SAYS JAMES CAMMISA JR WHO PUBLISHES TRAVEL INDUSTRY INDICATORS A MIAMIBASED NEWSLETTER ONCE YOU BEGIN TO SEE AN UNRAVELING OF FARE RESTRICTIONS IT JUST CONTINUES THE TREND BEGAN IN FEBRUARY WITH SOUTHWEST AIRLINES' CHEAPEST TICKETS CALLED FUN FARES THE NOFRILLS CARRIER REDUCED A 21DAY ADVANCEPURCHASE REQUIREMENT TO 14 DAYS AND MADE THE TICKETS REFUNDABLE IT ALSO ELIMINATED THE DREADED SATURDAY STAYOVER WITHIN DAYS UNITED AIRLINES A UAL UNIT DROPPED SIMILAR RESTRICTIONS IN MARKETS WHERE IT COMPETES WITH SOUTHWEST PRIMARILY IN WESTERN CITIES OTHER MAJOR AIRLINES ARE EXPECTED TO JOIN IN BUT SO FAR SAYS KEITH TAYLOR SOUTHWEST'S DIRECTOR OF REVENUE MANAGEMENT IT APPEARS COMPETITORS HAVE BEEN SOMEWHAT RELUCTANT TO FOLLOW MR TAYLOR WOULDN'T GIVE SPECIFICS ON PASSENGERS' REACTION BUT HE SAYS THE NUMBERS I HAVE SEEN HAVE BEEN VERY ENCOURAGING USAIR GROUP LAST MONTH LAUNCHED A SIMILAR PROGRAM IT ADVERTISES THE NEW LOW FARES OFFERED IN MANY EAST COAST CITIES AS HAVING NO STRINGS ATTACHED ALASKA AIRLINES ALSO WILL REFUND TICKETS IN SOME RESPECTS THE AIRLINES ARE SIMPLY SHIFTING HASSLES FROM PASSENGERS TO TRAVEL AGENTS REFUNDABLE TICKETS ARE GOING TO MAKE A LOT MORE WORK FOR US SAYS SCOTT PINHEIRO A VICE PRESIDENT OF SANTA CRUZ TRAVEL IN CALIFORNIA NOTING THAT HE EXPECTS A FLURRY OF LATE CHANGES AND CANCELLATIONS BUT IF IT DRIVES PEOPLE IN THE DOOR IT'S GOT TO BE BENEFICIAL TRAVEL MARKETERS ARE BECOMING CAMPUS RECRUITERS TRYING TO NAB STUDENT FLIERS AND EVEN THEIR PARENTS WORLDTEK TRAVEL BASED IN NEW HAVEN CONN STARTED THE NATIONAL COLLEGIATE TRAVEL CLUB IN JANUARY FOR 50 A YEAR THE CLUB OFFERS COLLEGE STUDENTS AND THEIR PARENTS DISCOUNT COUPONS FOR LASTMINUTE AMERICAN AIRLINES FLIGHTS AND CAR RENTALS AFTER HIS DAUGHTER ENROLLED AT VANDERBILT UNIVERSITY RECENTLY TOPPER LUCIANI WORLDTEK'S CHAIRMAN DISCOVERED THE VAST TRANSPORTATION DEMAND CREATED BY GOING AWAY TO COLLEGE HOMESICK FRESHMEN WHO NEED A WEEKEND RESPITE PARENTS WHO WANT TO POP IN FOR A RECITAL OR PLAY STUDENTS WHO MUST ATTEND FUNERALS OR VISIT ILL RELATIVES BACK HOME THIS IS A MARKET THAT TRAVEL AGENTS HAVEN'T BEEN SERVING WELL SAYS SHELLY SPIEGEL COPRESIDENT OF CAMPUS CONNECTIONS A CHERRY HILL NJ TRAVEL SERVICE THAT SORTS THROUGH COMPUTER RESERVATIONS SYSTEMS TO HELP STUDENTS FIND LITTLEKNOWN YOUTH FARES ONE EXAMPLE A 118 ROUNDTRIP TICKET BETWEEN ATLANTA AND PHILADELPHIA SOME AIRLINES ARE UPGRADING THEIR DEALS THE THREEYEAROLD STUDENT PRIVILEGES PROGRAM OFFERED BY AMERICAN EXPRESS AND CONTINENTAL AIRLINES THIS YEAR BEGAN ALLOWING STUDENTS TO BRING A COMPANION ON DISCOUNTED FLIGHTS BOTH COMPANIES VIEW THE PROGRAM AS A WAY TO GET A FIRST CRACK AT YOUNG CONSUMERS WE GET A VERY GOOD TARGETED LIST FOR OUR FREQUENTFLIER PROGRAMS PEOPLE WHO HAVEN'T ESTABLISHED LOYALTY YET SAYS EARL QUENZEL CONTINENTAL'S STAFF VICE PRESIDENT MARKETING PROGRAMS AND WITH SUCH RESTRICTIONS AS 14DAY ADVANCEPURCHASING HE ADDS WE ARE PUSHING STUDENTS INTO SEATS THAT WE ARE CONFIDENT WOULD OTHERWISE HAVE GONE EMPTY AN UNUSUAL TRAVEL HYBRID PROVES MORE POWERFUL THAN A SPEEDING LOCOMOTIVE A JOINT PROGRAM FROM AMTRAK AND UNITED AIRLINES ALLOWS PASSENGERS TO TAKE THE FIRST LEG OF A JOURNEY BY TRAIN THEN FLY BACK OR VICE VERSA THE TRIP TYPICALLY IS CHEAPER THAN FLYING BOTH WAYS AN AIR/RAIL TRIP BETWEEN CHICAGO AND SAN FRANCISCO FOR EXAMPLE COSTS 488 DURING THE PEAK SUMMER SEASON COMPARED WITH UNITED'S LOWEST ROUNDTRIP FARE OF 569 PASSENGERS CAN TAILOR THEIR ITINERARY TO INCLUDE SEVERALDAY STOPOVERS BEGUN THREE YEARS AGO AMTRAK'S AIRRAIL TRAVEL PLAN HAS GROWN FASTER THAN CONVENTIONAL MODES OF TRANSPORTATION WITH DOUBLEDIGIT PASSENGER INCREASES IN 1992 AND 1993 AND A PROJECTED 10 RISE THIS YEAR IT'S TAKEN OFF WITH RELATIVELY LITTLE ADVERTISING AND PROMOTION SAYS FRANK LAURIE A NATIONAL ACCOUNT MANAGER FOR UNITED THE MOST POPULAR ROUTES ARE FROM THE MIDWEST TO THE WEST BUT NEARLY ONETHIRD OF THE 22660 PASSENGERS LAST YEAR TRAVELED FROM COAST TO COAST THE TYPICAL TRIP IS 10 TO 12 DAYS ABOUT THREEQUARTERS OF PEOPLE PAY EXTRA FOR SLEEPING ACCOMMODATIONS ON THE TRAIN AND MOST TAKE A RAIL TRIP FIRST THEN FLY BACK FOR A TWOWEEK VACATION LAST FALL KAY HALEY A SEMIRETIRED OFFICE ADMINISTRATOR FLEW UNITED FROM DALLAS TO SEATTLE SHE THEN TRAVELED BY AMTRAK THROUGHOUT THE WESTERN US RIDING DOWN THE COAST TO OAKLAND THEN TO RENO NEV THEN TO DENVER AND ON HOME IT'S THE FIRST TIME I'VE BEEN ON A TRAIN IN 40 YEARS SHE SAYS I SAW A LOT OF THE COUNTRY I'VE ALWAYS FLOWN OVER TO PROMOTE ITS NEW LOWFARE PEANUTS FLIGHTS IN CHICAGO CONTINENTAL AIRLINES ROUNDED UP CHICAGOAREA RESIDENTS WITH THE SURNAME NUTT EARLIER THIS MONTH THE 30ODD NUTTS CUT A 25FOOT CEREMONIAL RIBBON MADE OF PEANUTS NEARLY 51000 FLIERS WERE BUMPED BY US AIRLINES LAST YEAR THAT WORKS OUT TO ABOUT 113 BUMPEES PER 10000 PASSENGERS SLIGHTLY HIGHER THAN THE 103 IN 1992 REPORTS THE TRANSPORTATION DEPARTMENT WITH A FEW EXCEPTIONS A BUMPED FLIER IS ENTITLED TO COLLECT UP TO 400 IF THE AIRLINE DOESN'T ARRANGE ALTERNATE TRANSPORTATION TO THE DESTINATION WITHIN AN HOUR OF THE ORIGINAL ARRIVAL TIME 9403220134 940322 WHO'S NEWS WILLCOX & GIBBS INC SAYS ZIEGLER RESIGNS VIRY IS NAMED CHIEF NEW YORK WILLCOX & GIBBS INC SAID JOHN K ZIEGLER 57 YEARS OLD RESIGNED AS CHAIRMAN PRESIDENT CHIEF EXECUTIVE OFFICER AND AS A DIRECTOR TO PURSUE UNSPECIFIED PERSONAL INTERESTS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE ELECTRICALPARTS DISTRIBUTOR WAS BOARD MEMBER ALAIN VIRY 45 A FORMER EXECUTIVE VICE PRESIDENT OF REXEL SA WHICH RECENTLY INCREASED ITS STAKE IN WILLCOX TO 40 FROM 30 MR VIRY ISSUED A STATEMENT PRAISING MR ZIEGLER BOARD MEMBER SERGE WEINBERG WHO IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF REXEL WAS NAMED TO A NEW POSITION OF WILLCOX VICE CHAIRMAN ERIC LOMAS 47 ALSO A BOARD MEMBER WHO IS PRESIDENT OF HILL THOMPSON GROUP LTD A NEW YORK INVESTMENTBANKING AND SECURITIES FIRM WAS NAMED CHAIRMAN MR ZIEGLER WHO WAS SAID TO BE TRAVELING COULDN'T BE REACHED FOR COMMENT IN A STATEMENT RELEASED BY THE COMPANY HE SAID WILLCOX HAD LARGELY COMPLETED A RESTRUCTURING PROGRAM GIVING HIM THE OPPORTUNITY TO PURSUE PERSONAL INTERESTS MR ZIEGLER HAS BEEN WITH THE COMPANY FOR MORE THAN 27 YEARS INCLUDING THE LAST 18 AS CHIEF EXECUTIVE OFFICER THE RESTRUCTURING INCLUDED THE COMPANY'S ACQUISITION LATE LAST YEAR OF SUMMERS GROUP INC AN ELECTRICAL DISTRIBUTOR BASED IN DALLAS AS WELL AS WILLCOX'S SALE OF ADDITIONAL SHARES TO REXEL IN FEBRUARY SAID A SPOKESWOMAN FOR THE COMPANY 9403220133 940322 WHO'S NEWS HERO GROUP LTD HERO GROUP LTD NEW YORK SAM D KAPLAN 38 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER AND SECRETARY OF THIS MARKETER AND PRODUCER OF WOMEN'S APPAREL SUCCEEDING RICHARD WOOLWINE WHO LEFT THE COMPANY IN NOVEMBER MR KAPLAN WAS FORMERLY CORPORATE CONTROLLER AT THE COMPANY 9403220132 940322 POLITICS & POLICY KENNEDY CLINTON'S ETHICS GATEKEEPER HADN'T PAID TAXES ON NANNY'S WAGES BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BEFORE WHITE HOUSE ASSOCIATE COUNSEL WILLIAM KENNEDY III BECAME A CLINTON GATEKEEPER ON ETHICAL ISSUES HE HAD A HIDDEN PROBLEM OF HIS OWN UNPAID TAXES OWED ON A NANNY'S WAGES BUT HE DISCLOSED IT TO ONLY ONE PERSON IN THE CLINTON CAMP VINCENT FOSTER THE DEPUTY WHITE HOUSE COUNSEL WHO DIED JULY 20 WHITE HOUSE OFFICIALS SAID YESTERDAY MR KENNEDY FORMER MANAGING PARTNER OF ROSE LAW FIRM FAILED TO PAY MORE THAN 1300 IN SOCIAL SECURITY TAXES FOR A PARTTIME NANNY IN LITTLE ROCK ARK IN 1992 ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER MR KENNEDY'S ROLE IN THE VIOLATION WAS CONCEALED FROM THE INTERNAL REVENUE SERVICE AND POSSIBLY FROM FBI BACKGROUND CHECKERS EARLY LAST YEAR WHEN THE DELINQUENT TAXES WERE PAID UNDER HIS WIFE'S PREVIOUS MARRIED NAME MR KENNEDY HAD A LITTLE ROCK ACCOUNTING FIRM PAY THE BACK TAXES TOTALING 135252 RATHER THAN PAY IT HIMSELF WITH A PERSONAL CHECK ACCORDING TO THE SAME PEOPLE THE USE OF MRS KENNEDY'S PREVIOUS NAME LESLIE GAIL MCRAE ISN'T ILLEGAL AND DOESN'T TROUBLE THE IRS BUT IT RAISES THE QUESTION OF WHETHER MR KENNEDY IN HIS EAGERNESS AS A PRESIDENTIAL APPOINTEE TO APPEAR ETHICALLY BEYOND REPROACH WAS TRYING TO DECEIVE THOSE WHO WERE CHECKING INTO HIS BACKGROUND THE FBI OFTEN ASKS THE IRS TO RUN TAX CHECKS ON PROSPECTIVE PRESIDENTIAL APPOINTEES MR KENNEDY'S DUTIES INCLUDE PARTICIPATING IN THE VETTING OF APPOINTEES TO DETERMINE IF THEY HAVE ETHICAL PROBLEMS OR CONFLICTS OF INTEREST THAT MIGHT EMBARRASS THE ADMINISTRATION MR KENNEDY COULDN'T BE REACHED FOR COMMENT BUT MARK GEARAN WHITE HOUSE COMMUNICATIONS DIRECTOR SAID THAT MR KENNEDY DISCLOSED THE NANNY PROBLEM TO MR FOSTER IN A PRELIMINARY INTERVIEW BEFORE HE CAME TO WASHINGTON THE KENNEDYS WHO ARE IN THE MIDST OF DIVORCE PROCEEDINGS HAVE TWO YOUNG CHILDREN THEY EMPLOYED A NANNY TWO TO FOUR DAYS A WEEK FOR CHILD CARE IN 1992 THE NANNY WAS PAID 8840 IN WAGES BUT SOCIAL SECURITY PAYMENTS WEREN'T PAID QUARTERLY AS REQUIRED BY THE IRS ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER BEFORE STARTING WORK AT THE WHITE HOUSE IN FEBRUARY 1993 MR GEARAN SAID MR KENNEDY PAID THE 1992 TAXES AS WELL AS PENALTIES FOR THE FIRST THREE QUARTERS THE FOURTHQUARTER PAYMENT WAS MADE ON TIME THE WHITE HOUSE HAS TAKEN THE POSITION THAT PROSPECTIVE APPOINTEES WITH NANNY OR HOUSEKEEPER PROBLEMS SHOULDN'T BE BARRED IF THEY PAY UP DELINQUENT TAXES AND STOP EMPLOYING ILLEGAL ALIENS MR GEARAN SAID PHILLIP COX MR KENNEDY'S ACCOUNTANT AND A PARTNER IN DELLOITE & TOUCHE'S LITTLE ROCK OFFICE WOULDN'T COMMENT ABOUT THE BACK TAXES OR FIRM'S ROLE IN THE MATTER THOSE ARE THE AFFAIRS OF MR KENNEDY HE SAID IT WOULD BE INAPPROPRIATE FOR ME TO COMMENT MR KENNEDY WAS ONE OF ROSE LAW FIRM'S BIG GUNS EARNING MORE THAN 587000 IN 1992 ACCORDING TO HIS FINANCIAL DISCLOSURE REPORT HIS CLIENTS INCLUDED STEPHENS INC THE LITTLE ROCKBASED SECURITIES FIRM AND BEVERLY ENTERPRISES A MAJOR NURSINGHOME COMPANY HE HAS BEEN DOGGED BY CONTROVERSY SINCE HE CAME TO WASHINGTON ALONG WITH THREE ROSE COLLEAGUES MR FOSTER HILLARY RODHAM CLINTON AND FORMER ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING SEVERAL ARKANSAS INVESTORS INCLUDING MR KENNEDY'S UNCLE IN CONNECTION WITH POSSIBLE INSIDER TRADING IN ARCTIC ALASKA FISHERIES CORP STOCK SHORTLY BEFORE TYSON FOODS INC DISCLOSED IN JUNE 1992 AN AGREEMENT TO ACQUIRE THE SEAFOOD COMPANY ARKANSASBASED TYSON WAS REPRESENTED BY THE ROSE FIRM MR KENNEDY SAID THAT HE DIDN'T WORK ON THE ACQUISITION AND THAT HE DOESN'T KNOW ANYTHING ABOUT THE CIRCUMSTANCES OF HIS UNCLE'S TRADING LAST JULY MR KENNEDY WAS REPRIMANDED BY THE WHITE HOUSE FOR INAPPROPRIATE CONTACTS WITH THE FBI DURING A CONTROVERSY OVER THE WHITE HOUSE TRAVEL OFFICE THE CONTACTS RISKED CREATING THE PERCEPTION THAT THE FBI WAS BEING IMPROPERLY PRESSURED ACCORDING TO A REPORT ON AN INTERNAL INQUIRY INTO THE MATTER 9403220131 940322 WHO'S NEWS DRESSER INDUSTRIES INC DRESSER INDUSTRIES INC DALLAS ALBERT O CORNELISON WAS NAMED TO THE NEWLY CREATED POSITION OF STAFF VICE PRESIDENT ASSOCIATE GENERAL COUNSEL LITIGATION MR CORNELISON 45 YEARS OLD WAS FORMERLY DEPUTY GENERAL COUNSEL FOR ELECTRONIC DATA SYSTEMS CORP A UNIT OF GENERAL MOTORS CORP 9403220130 940322 WHO'S NEWS BRISTOLMYERS SQUIBB CO BRISTOLMYERS SQUIBB CO NEW YORK MICHAEL F MEE 51 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR MEE SUCCEEDS MICHAEL E AUTERA WHO HAD BEEN CHIEF FINANCIAL OFFICER FOR 17 YEARS MR AUTERA CURRENTLY HEADS THE COMPANY'S NUTRITIONAL AND HEALTHCARE BUSINESSES THE TURMOIL IN THE PHARMACEUTICAL INDUSTRY WILL BE FAMILIAR TO MR MEE WHO HAS A BACKGROUND IN WORKING WITH COMPANIES STRUGGLING WITH CYCLICAL DOWNTURNS OR INDUSTRY CHANGE IN OCTOBER MR MEE RESIGNED AS CHAIRMAN AND CHIEF FINANCIAL OFFICER OF WANG LABORATORIES INC WHICH HE HELPED LEAD OUT OF BANKRUPTCY COURT HE HAS ALSO WORKED AT NORTON CO MONSANTO CO AND CHRYSLER CORP 9403220129 940322 TECHNOLOGY MARK IV'S TOLL PLAN IS BACKED AMTECH'S STOCK FALLS 342 BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL A GROUP OF SEVEN TOLLROAD AGENCIES IN THE NORTHEAST RECOMMENDED MARK IV INDUSTRIES INC'S TECHNOLOGY OVER AMTECH CORP'S FOR A REGIONAL AUTOMATED TOLLCOLLECTION SYSTEM SENDING AMTECH'S STOCK PLUMMETING 342 THE SYSTEM WOULD ALLOW MOTORISTS TO PAY TOLLS WITHOUT HAVING TO STOP OR FUMBLE FOR CHANGE OR TOKENS INSTEAD THE SYSTEM WOULD USE A TAG THAT CAN BE READ ELECTRONICALLY AS THE VEHICLE PASSES THROUGH THE TOLL AREA THE TOLL AMOUNT IS THEN CHARGED TO THE MOTORIST'S ACCOUNT ANALYSTS ESTIMATE THAT A CONTRACT WITH THE GROUP WHICH COLLECTIVELY SERVES FOUR MILLION VEHICLES A DAY IN THREE STATES COULD TOTAL 80 MILLION TO 100 MILLION OVER SEVERAL YEARS INSTALLATION IS SCHEDULED TO BEGIN IN 1995 AND TO BE COMPLETED BY 1999 THE INTERAGENCY GROUP IS TO GIVE ITS RECOMMENDATION TO THE BOARDS OF THE SEVEN AGENCIES WHICH OPERATE ROADS BRIDGES AND TUNNELS AMTECH'S STOCK CLOSED AT 21375 A SHARE DOWN 11125 ON VERY HEAVY VOLUME IN NASDAQ STOCK MARKET TRADING YESTERDAY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING MARK IV STOCK CLOSED AT 20 A SHARE UP 625 CENTS OR 32 ELECTRONIC TOLLCOLLECTION REPRESENTS ABOUT A THIRD OF AMTECH'S SALES WHICH ROSE 49 IN 1993 TO 594 MILLION THE COMPANY SELLS SIMILAR TECHNOLOGY TO RAILROADS AND SHIPPING COMPANIES G RUSSELL MORTENSON AMTECH'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE DECISION WOULD HAVE MINIMAL IMPACT ON THE DALLASBASED COMPANY'S 1994 RESULTS BUT HE ADDED WE DID CLEARLY WANT TO WIN THIS FOR REVENUE IN 1995 IN 1993 AMTECH EARNED 164 MILLION OR 110 A SHARE ANALYSTS PROJECT THE COMPANY WILL EARN 75 CENTS TO 85 CENTS A SHARE IN 1994 FOR MARK IV AN AMHERST NY MAKER OF ELECTRONIC INDUSTRIAL EQUIPMENT THAT IS MUCH BIGGER THAN AMTECH THE CONTRACT WOULD HAVE A SMALLER IMPACT MARK IV'S MASSTRANSIT BUSINESS ACCOUNTS FOR 18 OF ITS SALES WHICH TOTALED 109 BILLION IN THE FISCAL YEAR ENDED FEB AMTECH'S MR MORTENSON SAID THE COMPANY IS CONSIDERING WHETHER TO APPEAL THE INTERAGENCY GROUP'S RECOMMENDATION THOUGH HE ACKNOWLEDGED AMTECH WOULD FACE AN UPHILL BATTLE 9403220128 940322 INTERNATIONAL FUNLOVING GREEKS ARE UP IN ARMS OVER PLAN TO CLOSE NIGHTCLUBS EARLY BY JENNY PARIS STAFF REPORTER OF THE WALL STREET JOURNAL ATHENS A BAND IS PLAYING THE LATEST GREEK HITS AT THE MARRAKESH NIGHTCLUB IN CENTRAL ATHENS AND THE ACTION ISN'T CONFINED TO THE DANCE FLOOR SOME WOMEN ARE DANCING ON TOP OF TABLES WHILE MEN CLAP IN TIME OR SHOWER THEIR DATES WITH RED AND WHITE CARNATIONS IT'S 4 AM ON A MONDAY BUT MOST OF THESE LATTERDAY DIONYSIANS SEEM AS IF THEY CAN PARTY FOR A COUPLE OF HOURS MORE BEFORE DRAGGING THEIR BODIES TO WORK AND THEY AREN'T THE ONLY ONES LOSING SLEEP OVER THIS LIFESTYLE PUBLIC ORDER MINISTER STELIOS PAPATHEMELIS BLAMES THE REVELRY FOR GREECE'S LOW PRODUCTIVITY AND HE HAS SUCCEEDED IN PUTTING A CRIMP IN THE CAROUSING UNDER A NEW LAW SCHEDULED TO TAKE EFFECT WEDNESDAY NIGHTCLUBS AND TAVERNS MUST CLOSE AT 2 AM SUNDAY THROUGH THURSDAY AND NO LATER THAN 330 AM ON FRIDAYS AND SATURDAYS THE ISSUE HAS DRAWN FIRE FROM PREDICTABLE QUARTERS CLUB OWNERS STAGED AN UNPRECEDENTED STRIKE FOR ONE DAY LAST MONTH AND THEY THREATEN TO SHUT DOWN AGAIN UNLESS MR PAPATHEMELIS EXTENDS THE CLOSING TIMES BY AT LEAST ONE HOUR NIGHT CRAWLERS COMPLAIN THAT SOMETHING AKIN TO THEIR BIRTHRIGHT AS GREEKS IS BEING CHALLENGED MEANWHILE THE CAST AT THE OFFICIAL LEVEL GIVES THIS GREEK TRAGEDY A DOSE OF COMIC IRONY FOR ALL MR PAPATHEMELIS'S FRETTING ABOUT A DEBILITATED WORK FORCE HIS CHIEF ANTAGONIST HAS BEEN LABOR MINISTER EVANGELOS YANNOPOULOS ATHENS'S 2000 OR SO NIGHTCLUBS THE CRUX OF THE PROBLEM ENJOY A THRIVING BUSINESS THANKS TO LOCAL CUSTOMERS AS WELL AS MILLIONS OF SUMMERTIME TOURISTS THE BOUZOUKIA SO NAMED FROM THE TRADITIONAL GREEK STRINGED INSTRUMENT ARE PACKED ALMOST EVERY NIGHT DESPITE EXORBITANT PRICES FOR CHEAPER PLACES LIKE MARRAKESH POPULARLY KNOWN AS DOGHOUSES BECAUSE THEIR SECONDRATE SINGERS SOUND LIKE KENNEL CHORISTERS YOU HAVE TO BOOK DAYS IN ADVANCE TO GET IN ON A FRIDAY OR SATURDAY A NIGHT OUT CAN COST AN AVERAGE GREEK A MONTH'S SALARY SCOTCH OR VODKA GOES FOR AS MUCH AS 24000 DRACHMAS 97 A BOTTLE WHILE A FORTUNE CAN BE SPENT ON FLOWERS AT 20 A TRAY AFTER HIS FIRST BOTTLE A GREEK MAN MAY FEEL COMPELLED TO DUMP AT LEAST 10 TRAYS ON HIS DATE NIGHTCLUB OWNERS SAY THE NEW LAW WILL COST THEM A LOT OF BUSINESS MAKIS PSOMIADES OWNER OF MARRAKESH AND THREE OTHER CLUBS SAYS THE LAW LIMITS OUR OPERATION TO NO MORE THAN TWO HOURS AS NOBODY GOES FOR A DRINK BEFORE MIDNIGHT PEOPLE GO TO DINNER OR TO THE THEATER AND WILL THEN COME TO US THE OWNERS' STRIKE THREAT DOESN'T UPSET MR PAPATHEMELIS WHO PROBABLY WOULDN'T MIND IF NIGHTCLUBS CLOSED FOR GOOD HE SAYS HIS MEASURE WHICH INCLUDES BANNING TEENAGERS FROM CLUBS WHERE ALCOHOL IS SERVED ALSO SEEKS TO REDUCE CRIME RATES AND TRAFFIC ACCIDENTS CAUSED BY DRINKING TO ENFORCE ALL THIS HE IS PREPARING WHAT HE CALLS A SPECIAL COMMANDO FORCE WHICH WILL MAKE SUDDEN RAIDS ON NIGHTCLUBS THE NEW POLICE BODY DUBBED BY THE GREEK PRESS AS THE UNTOUCHABLES IS DEEMED NECESSARY TO AVOID UNDERTHETABLE DEALS BETWEEN CLUB OWNERS AND LOCAL POLICE STATIONS THAT HAPPENED THE LAST TIME A SIMILAR BAN WAS IN FORCE IN 1977 WHEN AN ENERGY CRISIS FORCED NIGHTCLUBS TO CLOSE EARLY TO SAVE ELECTRICITY MR PAPATHEMELIS HAS ON HIS SIDE NIGHTCLUB EMPLOYEES WHO WOULDN'T MIND A MORE REASONABLE WORK SCHEDULE AND PARENTS WHO WILL NO LONGER HAVE TO WAIT UP ALL NIGHT FOR ERRANT YOUTHS TO COME HOME A RECENT SURVEY BY THE PRIVATE POLLING COMPANY ICAP ESTIMATED THAT 52 OF ATHENIANS FAVORED THE NEW LAW BUT MANY GREEKS FEEL THAT NOT EVEN THE UNTOUCHABLES CAN MAKE THEM GO TO BED EARLY I CAN'T IMAGINE THE POLICE RAIDING BARS AND DISCOS AND THROWING PEOPLE OUT SAYS ANNA MARATOS A 30YEAROLD PUBLIC RELATIONS MANAGER AT A PRIVATE TELEVISION STATION NO MINISTER CAN TELL ME WHEN AND HOW LONG I WILL HAVE FUN MS MARATOS LIKE MANY ATHENIANS HER AGE SAYS SHE GOES ON A LATENIGHT OUTING AT LEAST ONCE OR TWICE A WEEK GREEKS HAVE NIGHT LIFE IN THEIR BLOOD SAYS A POPULAR SINGER WHO GOES BY THE NAME OF ANTYPAS THEY DON'T WANT ANY LIMITS WHEN THEY ARE HAVING FUN MR PAPATHEMELIS BELIEVES HIS MEASURE WILL CHANGE THIS CENTURIESOLD INCLINATION TO DINE AND DANCE INTO THE WEE HOURS AND BRING GREECE CLOSER TO THE REST OF EUROPE IT'S OUTRAGEOUS THAT SOMEONE CAN STAY UP ALL NIGHT ONLY TO FALL ASLEEP NEXT DAY AT WORK HE SAYS IN AN INTERVIEW HE DOESN'T HAVE ANY OFFICIAL COMPLAINTS FROM EMPLOYERS ABOUT POOR PRODUCTIVITY DUE TO LATENIGHT CAROUSING BUT HE ARGUES THAT A STROLL IN ATHENS IS PROOF ENOUGH IN ATHENS AFTER MIDNIGHT ONE HAS THE FEELING THAT HE IS CAUGHT IN MIDDAY'S RUSH HOUR MR PAPATHEMELIS SAYS THE NIGHT HAS BECOME DAY AND THE DAY NIGHT WHEN DO ALL THESE PEOPLE SLEEP MR PAPATHEMELIS MIGHT HAVE TURNED TO HIS CABINET COLLEAGUES FOR AN ANSWER SOME FELLOW MINISTERS AND OTHER POLITICIANS ARE OFTEN SEEN ENJOYING THEMSELVES IN VARIOUS NIGHTCLUBS PRIME MINISTER ANDREAS PAPANDREOU LIKED TO DANCE UNTIL DAWN UNTIL HE HAD OPENHEART SURGERY IN 1988 AND THEN THERE IS MR YANNOPOULOS BEFORE HE BECAME LABOR MINISTER HE MADE FRONTPAGE NEWS LAST YEAR IN PICTURES THAT SHOWED HIM WITH A FEMALE STRIPPER WHO WAS WAVING HER BRA ABOVE HIS HEAD AT SODOM ONE OF THE CAPITAL'S HOTTEST CLUBS MR YANNOPOULOS HAS MADE NO SECRET OF HIS LOVE FOR GREEK NIGHT LIFE AND RECENTLY STIRRED UP A DEBATE OVER WHAT THE PRESS DUBBED THE BOUZOUKI VS BACH AND SHAKESPEARE FOR GIVING FREE TICKETS TO LOWINCOME WORKERS FOR CERTAIN NIGHTCLUBS THE TICKETS WERE INCLUDED IN GOVERNMENT SUBSIDIES FOR CULTURAL ACTIVITIES THAT USUALLY ARE INTENDED FOR SERIOUS THEATER AND CONCERTS MR YANNOPOULOS ARGUED THAT BOUZOUKI MUSIC IS PART OF THE GREEK CULTURE THE LABOR MINISTER TRIED TO NEGOTIATE A COMPROMISE BETWEEN MR PAPATHEMELIS AND THE NIGHTCLUB OWNERS BUT TO NO AVAIL IN ANY EVENT SOME ATHENIANS DOUBT THE LAW WILL BRING ABOUT MUCH CHANGE THE WHOLE THING REMINDS ME OF PROHIBITION IN CHICAGO LIQUOR WAS FORBIDDEN BUT EVERYBODY WAS OUT DRUNK WITH A BOTTLE IN HIS POCKET SAYS ANTYPAS THE SINGER WHAT IS FORBIDDEN IS ALWAYS SWEETER 9403220127 940322 BUSINESS BRIEFS CYPRUS AMAX MINERALS CO COMPLETED ITS ACQUISITION OF A 915 STAKE IN SOCIEDAD MINERA CERRO VERDE SA A GOVERNMENTOWNED COPPERMINING COMPANY IN PERU FOR ABOUT 34 MILLION NU HORIZONS ELECTRONICS CORP SIGNED A LETTER OF INTENT TO ACQUIRE MERIT ELECTRONICS INC OF SAN JOSE CALIF FOR ABOUT 6 MILLION AMERICAN BANCORP SIGNED A LETTER OF INTENT TO ACQUIRE CERTAIN ASSETS AND TO ASSUME CERTAIN LIABILITIES OF OHIOBASED BUCKEYE SAVINGS BANK A SUBSIDIARY OF CROWN BANK IN CASSELBERRY FLA MCI COMMUNICATIONS CORP SIGNED A THREEYEAR 43 MILLION AGREEMENT TO PROVIDE GLOBAL TELECOMMUNICATIONS SERVICES TO BAXTER INTERNATIONAL INC LEVITZ FURNITURE INC ENTERED INTO A DEFINITIVE PACT TO BUY CLOSELY HELD JOHN M SMYTH CO A CHAIN OF SIX FURNITURE STORES IN CHICAGO FOR 50 MILLION 9403220126 940322 WHO'S NEWS PREMIER ANESTHESIA INC PREMIER ANESTHESIA INC ATLANTA W DANIEL BARKER 67 YEARS OLD WAS NAMED TO THE BOARD OF THIS CONTRACT ANESTHESIASERVICE PROVIDER MR BARKER A HEALTHCARE CONSULTANT AND PROFESSOR EMERITUS OF COMMUNITY HEALTH AT EMORY UNIVERSITY SCHOOL OF MEDICINE FILLS ONE OF TWO EMPTY BOARD SLOTS CREATED WHEN TWO EXECUTIVES LEFT IN JANUARY TERRY VITEZ 50 EXECUTIVE VICE PRESIDENT OF MEDICAL AFFAIRS AND RICHARD BALLARD 45 PRESIDENT LEFT THE COMPANY AND THEIR BOARD SEATS IN A RESTRUCTURING 9403220125 940322 WHO'S NEWS FIRST CHESAPEAKE'S DELL RESIGNS AS CHAIRMAN GRAY ASSUMES DUTIES RICHMOND VA FIRST CHESAPEAKE FINANCIAL CORP SAID ITS CHAIRMAN RESIGNED AND WILL SELL MUCH OF HIS HOLDINGS IN THE MORTGAGE BANKING COMPANY JOHN E DELL 45 YEARS OLD SAID HE RESIGNED FOR SEVERAL REASONS INCLUDING OTHER BUSINESS COMMITMENTS AND PHILANTHROPIC PURSUITS MR DELL HAD BEEN CHAIRMAN OF THE COMPANY SINCE MAY 1992 THE DUTIES OF CHAIRMAN WILL BE ASSUMED BY FIRST CHESAPEAKE'S PRESIDENT AND CHIEF EXECUTIVE OFFICER MAX E GRAY 44 FIRST CHESAPEAKE SAID MR DELL HAS SET UP A DISPOSITION TRUST TO SELL 550000 SHARES OF COMMON STOCK AND WARRANTS TO PURCHASE AN ADDITIONAL 300000 SHARES HE WILL CONTINUE TO OWN 450000 COMMON SHARES OR ABOUT 99 OF THE COMPANY'S COMMON SHARES SEPARATELY THE COMPANY SAID IT COMPLETED ITS MERGER WITH WATERFORD MORTGAGE CORP PUTTING IT INTO THE RESIDENTIAL LOAN ORIGINATION BUSINESS 9403220124 940322 LEISURE & ARTS ON SPORTS CALL HIM SCARY IN SEATTLE BY FREDERICK C KLEIN PEORIA ARIZ A HIGHLIGHT OF THE LAST BASEBALL SEASON MAYBE THE HIGHLIGHT CAME IN THE ALLSTAR GAME WHEN RANDY JOHNSON THE LEFTHANDED PITCHER FOR THE SEATTLE MARINERS FACED LEFTHANDEDHITTING JOHN KRUK OF THE PHILADELPHIA PHILLIES JOHNSON WHO STANDS 6FOOT10 AND CAN THROW A BALL THROUGH A WALL STARTED THINGS OFF WITH A PITCH THAT SAILED OVER KRUK'S HEAD CAUSING THE BARRELSHAPED PHILLIE TO ROLL HIS EYES IN HORROR JOHNSON THEN PROCEEDED TO WHIP THREE PITCHES PAST KRUK WHEREUPON THE LATTER BOWED TOWARD THE MOUND AND RETREATED TO THE DUGOUT HE WAS LATER HEARD TO SAY THAT HE WAS GLAD HE WAS A NATIONAL LEAGUER AND DIDN'T HAVE TO FACE JOHNSON REGULARLY AT HIS TEAM'S SPIFFY NEW SPRINGTRAINING COMPLEX HERE THE OTHER DAY JOHNSON GRINNED AT THE RECOLLECTION OF THE INCIDENT THAT WAS FUN BUT I THINK IT SAID MORE ABOUT HIM KRUK THAN ME HE SAID THAT FIRST PITCH SLIPPED I DIDN'T THROW IT AWAY INTENTIONALLY AMERICAN LEAGUE HITTERS WHO MUST FACE JOHNSON REGULARLY WILL TAKE THAT DISCLAIMER WITH A SHAKER OF SALT HIS INTENTIONS ON THE MOUND MAY INDEED BE PURELY HONORABLE BUT FEAR AND LOATHING FOLLOW HIM ANYWAY TEAMMATES HAVE NICKNAMED HIM BIG UNIT BUT TAKE HIS LANKY FRAME PUT IT IN SPIKED SHOES AND PLACE IT ATOP A 10INCHHIGH PITCHER'S MOUND AND THE NORTHWEST NIGHTMARE SEEMS A MORE APPROPRIATE HANDLE BEFORE LAST SEASON JOHNSON CAUSED AS MANY BAD DREAMS FOR FRIENDS AS FOES HIS SLANTS PRODUCED STRIKEOUTS APLENTY BUT THEY ALSO LED TO NUMEROUS WALKS ENOUGH TO LEAD HIS LEAGUE IN 1990 1991 AND 1992 FOR ALL HIS ROCKETRY HIS PREVIOUS FOURPLUS YEARS IN THE MAJORS BEGINNING WITH THE MONTREAL EXPOS IN 1988 YIELDED JUST 49 WINS ONE MORE THAN HIS LOSSES IN 1993 HOWEVER AT AGE 29 THE BIG FELLA HAD THE SORT OF SEASON PEOPLE HAD BEEN PREDICTING FOR HIM SINCE HE STARTED FRIGHTENING HITTERS AS A LITTLE LEAGUER IN GRANADA CALIF HIS WONLOST RECORD WAS 198 HIS 308 STRIKEOUTS MADE HIM THE 11TH BIGLEAGUE PITCHER EVER TO TOP THE 300 MARK FOR A SEASON AND HIS WALK TOTAL IN A CAREERHIGH 255 INNINGS DIPPED TO 99 FROM 144 IN 210 INNINGS THE YEAR BEFORE ONE COULD FILL THIS COLUMN WITH JOHNSON'S DAZZLING '93 STATS BUT A FEW MORE SHOULD SUFFICE RIGHTHANDED HITTERS BATTED JUST 204 AGAINST HIM A FIGURE THAT BY ITSELF WOULD HAVE ALLOWED HIM TO LEAD THE LEAGUE BUT LEFTHANDERS NICKED HIM FOR BUT 184 HE WAS SO EFFECTIVE AGAINST LEFTIES THAT MOST TOOK THE DAY OFF WHEN HE THREW THEY FACED HIM FOR ONLY 71 OFFICIAL TURNS AT BAT JOHNSON SUMS UP HIS METAMORPHOSIS IN A WORD MECHANICS IT'S A WORD SOME PITCHERS WOULD JUST AS SOON NEVER UTTER BELIEVING THE LESS SAID ABOUT THEIR THROWING MOTIONS THE BETTER FOR A HURLER OF JOHNSON'S GREAT HEIGHT THOUGH GETTING HIS MECHANICAL ACT TOGETHER HAS BEEN A CAREERLONG PREOCCUPATION FOR BOTH HIM AND HIS COACHES I THINK IT'S BEEN HARDER FOR THEM THAN FOR ME HE REMARKS NONE OF THEM EVER COACHED A 6FOOT10 PITCHER BEFORE INTERESTINGLY ONE OF THE MEN HE CREDITS WITH PUTTING HIM ON THE RIGHT TRACK ISN'T HIS COACH AND ANOTHER ISN'T A COACH AT ALL THEY ARE RESPECTIVELY THE SCHOLARLY TOM HOUSE FORMERLY OF THE TEXAS RANGERS AND NOLAN RYAN THE JUSTRETIRED MIDDLEAGED FIREBALLER HOUSE INTRODUCED ME TO RYAN A FEW YEARS AGO AND THEY'VE BOTH WORKED WITH ME SINCE JOHNSON SAYS I THINK THE BREAKTHROUGH CAME BEFORE THE 1992 SEASON I'D BEEN WATCHING HOW SOLID NOLAN'S FOOTPLANT WAS WHEN HE THREW AND IT MADE ME LOOK CLOSELY AT MY OWN IT SEEMED THAT I'D BEEN COMING DOWN ON MY HEEL INSTEAD OF ON THE BALL OF MY FOOT AND THAT WAS CAUSING MY FOOT TO SLIDE AND MY RELEASE POINT TO BE INCONSISTENT THAT HAD TO HAVE BEEN A BIG FACTOR IN MY WILDNESS IT WAS HARDER TO CORRECT THAN YOU MIGHT THINK AND IT TOOK AWHILE BUT THINGS FELL TOGETHER FOR ME LAST SEASON I WAS PUTTING THE BALL WHERE I WANTED TO IT WAS EXCITING TO FINALLY LIVE UP TO WHAT PEOPLE HAD BEEN PREDICTING FOR ME JOHNSON AND RYAN HAVE CONTINUED TO CONFER ABOUT PITCHING ESPECIALLY ITS TACTICAL SIDE AND WITH CONTINUED GOOD EFFECTS ON JOHNSON EVERYBODY HAS DAYS WHEN HIS STUFF ISN'T DOMINATING AND I'M NO EXCEPTION SAYS THE PITCHER NOLAN'S HELPED ME TO REALIZE I SHOULD TRY TO MAKE THE BEST OF WHAT I'VE GOT ON THOSE DAYS RATHER THAN PRETENDING NOTHING'S WRONG THE STATISTIC I'M PROUDEST OF FROM LAST YEAR WAS MY 10 COMPLETE GAMES IN 34 STARTS THAT MEANT I WAS HANGING IN THERE GIVING MYSELF AND MY TEAM A CHANCE TO WIN NOBODY WAS BETTER AT THAT THAN NOLAN RYAN RETURNS THE COMPLIMENT WHEN RANDY'S AT THE TOP OF HIS GAME HE'S PRETTY DARN UNHITTABLE THE MAJOR LEAGUES' ALLTIME STRIKEOUT LEADER HAS SAID I SEE A LOT OF MYSELF IN HIM SEATTLE FANS PROBABLY WILL BE SEEING A LOT OF JOHNSON IN THE COMING YEARS THANKS TO THE CONTRACT HE SIGNED WITH THE MARINERS DURING THE OFFSEASON IT IS FOR FOUR YEARS AND AN OPTION FOR A FIFTH AND WILL PAY HIM ABOUT 27 MILLION IF IT RUNS TO COMPLETION IN PART THE COMMITMENT REFLECTS THE PITCHER'S CONVICTION THAT BETTER DAYS ARE AHEAD FOR THE ONCEWOEBEGONE CLUB WHICH LAST SEASON POSTED JUST ITS SECOND WINNING RECORD IN 17 YEARS OF EXISTENCE HE CHRIS BOSIO DAVE FLEMING AND GREG HIBBARD GIVE THE MARINERS A STARTINGPITCHING ROTATION THAT COULD MAKE THEM PENNANT CONTENDERS THIS TERM IF ALL STAY HEALTHY JOHNSON HAS BEEN DOING HIS PART TOWARD THAT IMPROVEMENT THIS SPRING BY WORKING ON A CHANGEOFPACE DELIVERY HE'S BEEN GETTING ALONG THUS FAR WITH TWO PITCHES A FASTBALL AND SLIDER AND FIGURES IT'S ABOUT TIME HE HAD A THIRD I'VE HAD A CHANGEUP FOR A COUPLE OF SEASONS NOW IT'S JUST THAT I HAVEN'T HAD THE CONFIDENCE TO USE IT MUCH HE CONFESSES HE SAYS HE'D LIKE TO BE ABLE TO SUMMON UP THE PITCH TWO OR THREE TIMES AN INNING INSTEAD OF HIS PAST RATE OF TWO OR THREE TIMES A GAME IF HE COULD DO THAT HIS REP AROUND HIS LEAGUE WOULD CHANGE IT'D GO FROM SCARY TO SCARIER 9403220123 940322 BUSINESS BRIEF OCCIDENTAL PETROLEUM CORP COMPANY TO ACQUIRE STAKES IN 17 GULF COAST PROPERTIES OCCIDENTAL PETROLEUM CORP SAID IT AGREED TO ACQUIRE INTERESTS IN 17 GULF COAST OIL AND NATURAL GAS PROPERTIES FROM AGIP PETROLEUM CO FOR 195 MILLION HALF IN CASH AND HALF IN OCCIDENTAL COMMON STOCK AGIP PETROLEUM IS A UNIT OF AGIP SPA OF ITALY OCCIDENTAL SAID THE PROPERTIES WHICH INCLUDE 15 OFFSHORE AND TWO IN TEXAS CONTAIN ESTIMATED PROVEN AND PROBABLE RESERVES OF 204 MILLION CUBIC FEET OF NATURAL GAS EQUIVALENT THE LOS ANGELES COMPANY SAID 80 OF THE RESERVES ARE NATURAL GAS THE PROPERTIES WILL ADD ABOUT 50 MILLION CUBIC FEET A DAY OF NATURAL GAS AND 3500 BARRELS OF OIL A DAY OF NET PRODUCTION TO OCCIDENTAL'S DOMESTIC OIL AND GAS OPERATION THE COMPANY SAID DURING 1993 OCCIDENTAL'S DAILY NET DOMESTIC PRODUCTION AVERAGED 600 MILLION CUBIC FEET OF GAS AND 58000 BARRELS OF OIL 9403220122 940322 LAW LEGAL BEAT APPEALSCOURT RULING OPENS DOOR FOR TRIAL JUDGES TO BE ARBITRATORS BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL APPEALS COURT HAS CLEARED THE WAY FOR AN UNUSUAL APPROACH TO SPEEDING UP LITIGATION ALLOWING TRIAL JUDGES TO ACT AS ARBITRATORS IN THE CASES BEFORE THEM THE RULING BY THE SEVENTH US CIRCUIT COURT OF APPEALS IN CHICAGO REFLECTS THE GROWING POPULARITY OF ARBITRATION AND OTHER ALTERNATIVES TO GOING TO TRIAL TURNING JUDGES INTO ARBITRATORS ELIMINATES MANY OF THE TIMECONSUMING ASPECTS OF LITIGATION SUCH AS PRETRIAL FACTGATHERING AND THE TRIAL ITSELF MORE IMPORTANTLY IT FORECLOSES THE POSSIBILITY OF APPEAL AS THE APPEALS COURT NOTED IN ITS RULING ADR OR ALTERNATIVE DISPUTE RESOLUTION' IS ALL THE RAGE THESE DAYS THE COURT SAID JUDGES ESSENTIALLY CAN ACT AS ARBITRATORS FOR THE CASES BEFORE THEM IF THE PARTIES INVOLVED AGREE TO SUCH A NARROW ROLE FOR THE JUDGE AND IF THEY GIVE UP THEIR RIGHT TO APPEAL PARTIES ARE FREE WITHIN BROAD LIMITS TO AGREE ON SIMPLIFIED PROCEDURES FOR THE DECISION OF THEIR CASE THE COURT SAID IN THE CASE BEFORE THE APPEALS COURT THE PARTIES HAD AGREED THAT THE FEDERAL MAGISTRATE JUDGE ASSIGNED TO THE CASE WOULD ACT AS THE ARBITRATOR IF ANY IMPASSE ARISES SOME LAWYERS SAY THE DECISION WHICH RECEIVED LITTLE ATTENTION WHEN IT WAS HANDED DOWN EARLIER IN THE YEAR IS LIKELY TO ENCOURAGE OTHER PARTIES TO SEEK SUCH ARRANGEMENTS AS A WAY TO BRING LENGTHY LEGAL PROCEEDINGS TO AN END THE DECISION WAS REPORTED IN LAWYERS WEEKLY USA A TRADE JOURNAL JUDGES ALREADY FUNCTION AS MEDIATORS IN ENCOURAGING SETTLEMENT TALKS SAID ANGELO J GENOVA A LABOR LAWYER WITH THE FIRM GENOVA BURNS TRIMBOLI & VERNOIA IN LIVINGSTON NJ IT IS A NATURAL NEXT STEP IF THE PARTIES CONSENT THE JUDICIARY COULD FUNCTION IN AN ADR CAPACITY DAVID COPUS AN ATTORNEY IN THE WASHINGTON OFFICE OF LAW FIRM JONES DAY REAVIS & POGUE SAID IF ACTIVE FEDERAL JUDGES WERE AVAILABLE TO PARTICIPATE IN ARBITRATION THAT WOULD BE GREAT THERE'S A GENERAL TREND TOWARD MORE USE OF ALTERNATIVE DISPUTE RESOLUTION TECHNIQUES AND I THINK THIS IS A STEP IN THE RIGHT DIRECTION IN THE CASE BEFORE THE APPEALS COURT DDI SEAMLESS CYLINDER INTERNATIONAL INC HAD SUED GENERAL FIRE EXTINGUISHER CORP IN 1989 FOR BACKING OUT OF AN AGREEMENT TO BUY A LARGE QUANTITY OF CYLINDERS TO BE USED IN FIRE EXTINGUISHERS GENERAL FIRE EXTINGUISHER CLAIMED THAT THE CYLINDERS FROM THE SAULT STE MARIE ONTARIO COMPANY WERE DEFECTIVE AND THAT THE MARKET FOR FIRE EXTINGUISHERS HAD SHRUNK THE LOWER COURT ENCOURAGED THE PARTIES TO SETTLE THE CASE AND TWO MEDIATORS ATTEMPTED TO RESOLVE THE DISPUTE BEFORE IT WAS ASSIGNED TO THE MAGISTRATE JUDGE AFTER AN AUDITOR RECOMMENDED DAMAGES OF 38000 BE PAID TO DDI THE MAGISTRATE JUDGE RECALCULATED THE AMOUNT TO INCLUDE INTEREST ON A RELATED LINE OF CREDIT AND ORDERED GENERAL FIRE EXTINGUISHER TO PAY 124860 GENERAL FIRE EXTINGUISHER NORTHBROOK ILL ASKED THE APPEALS COURT TO THROW OUT THE ORDER CLAIMING THAT THE MAGISTRATE JUDGE'S CALCULATIONS WERE INCORRECT BUT THE APPELLATE COURT SAID THAT IN AGREEING THAT THE MAGISTRATE JUDGE WOULD ACT AS AN ARBITRATOR THE PARTIES HAD WAIVED THEIR RIGHT TO APPEAL EXCEPT ON EGREGIOUS GROUNDS SUCH AS FRAUD OR CONFLICT OF INTEREST THE COURT SAID THE PARTIES COULD HAVE SPECIFIED IN THE AGREEMENT THAT UNLIKE A TYPICAL ARBITRATION THEY WERE RESERVING BROADER RIGHTS TO CHALLENGE THE DECISION ON APPEAL THE OPINION WAS WRITTEN BY CHIEF JUDGE RICHARD A POSNER KNOWN FOR INNOVATIVE DECISIONS BASED ON ECONOMIC THEORY ALTHOUGH THE SEVENTH CIRCUIT'S RULINGS APPLY ONLY IN ILLINOIS INDIANA AND WISCONSIN THE INFLUENTIAL COURT'S OPINIONS OFTEN ARE CITED IN CASES THROUGHOUT THE COUNTRY BERNARD KAPLAN AN ATTORNEY FOR GENERAL FIRE EXTINGUISHER AT THE SKOKIE ILL LAW FIRM RUBEN KAPLAN & ROSEN SAID THE APPEALS COURT ALLOWED MAGISTRATE JUDGES A ROLE THAT ISN'T AUTHORIZED IN FEDERAL LAW IT IS A VERY TORTURED DECISION HE SAID THE COURT WAS SEEKING TO DO BY INDIRECT MEANS WHAT THE STATUTE ON MAGISTRATE JUDGES DIDN'T ALLOW IT TO DO THE COURT TURNED DOWN MR KAPLAN'S REQUEST FOR A REHEARING BECAUSE OF A RELATED 150ADAY PENALTY ALSO UPHELD BY THE COURT MR KAPLAN SAID HIS CLIENT COULDN'T AFFORD TO APPEAL THE CASE ANY FURTHER MR KAPLAN WHO WASN'T INVOLVED IN THE LAWSUIT WHEN THE ARBITRATION AGREEMENT WAS REACHED ALSO ARGUED THAT THE APPEALS COURT HAD MISINTERPRETED THE SCOPE OF THAT AGREEMENT THE INNOCENT USE OF THE WORD ARBITRATOR CAME BACK TO HAUNT THE PARTIES HE SAID THERE IS NOTHING HERE IN THE ORIGINAL ORDER THAT SAYS WE GIVE UP OUR RIGHT TO APPEAL LYLE PECK A SAULT STE MARIE MICH ATTORNEY FOR DDI SAID THE RULING HAS GENERATED DOZENS OF CALLS FROM LAWYERS AND CLIENTS INTERESTED IN ASKING TRIAL JUDGES TO ARBITRATE THEIR CASES THIS DECISION IS GOING TO PROVIDE A FREE MECHANISM FOR ARBITRATION HE SAID DDI SEAMLESS CYLINDER INTERNATIONAL INC VS GENERAL FIRE EXTINGUISHER CORP SEVENTH US CIRCUIT COURT OF APPEALS NO PROSPECTIVE JURORS IN CHILD SEXUALABUSE CASES SHOULD BE ASKED PRIVATELY WHETHER THEY EVER WERE ABUSED MASSACHUSETTS'S HIGHEST COURT RULED UNDER USUAL MASSACHUSETTS COURT PROCEDURES JUDGES ARE ENCOURAGED TO QUESTION JURORS QUICKLY AND IN OPEN COURT DURING THE SOCALLED VOIR DIRE OR JURYSELECTION PROCEEDING ONLY IN CASES INVOLVING INTERRACIAL VIOLENCE DO JUDGES ROUTINELY DRAW JURORS ASIDE FOR PRIVATE QUESTIONING IN MOST OTHER STATES JUDGES DO PRIVATELY QUESTION JURORS WHEN SENSITIVE ISSUES ARISE SAID THOMAS MUNSTERMAN WHO STUDIES JURIES AT THE NATIONAL CENTER FOR STATE COURTS WILLIAMSBURG VA NOBODY WANTS TO EMBARRASS A JUROR HE SAID ADDING THAT COURTS ARE STRIVING TO GIVE JURORS AS MUCH PRIVACY AS POSSIBLE IN THE MASSACHUSETTS CASE A TRIAL JUDGE HAD ASKED JURORS A GENERAL QUESTION ABOUT WHETHER THEY COULD SERVE WITHOUT BIAS IN THE CASE BUT THE JUDGE DECLINED TO SPECIFICALLY ASK WHETHER JURORS WERE ABUSED OR KNEW ABUSE VICTIMS DURING THE TRIAL IT TURNED OUT THAT ONE JUROR WAS A SEXUALOFFENSE VICTIM AND HAD TO BE EXCUSED AS THE PRESENT CASE WELL ILLUSTRATES ADULT VICTIMS OF CHILDHOOD SEXUAL OFFENSES MAY BE RELUCTANT TO COME FORWARD AND DISCUSS SUCH A PRIVATE AND HIGHLY EMOTIONAL EVENT WITH A JUDGE THE SUPREME JUDICIAL COURT SAID THEY MAY BE EMBARRASSED ABOUT IT THEY MAY FEEL IT WOULD NOT AFFECT THEIR OBJECTIVITY OR THEY MAY JUST NOT WANT TO DISCUSS IT IF EITHER PARTY WANTS JURORS TO BE PRIVATELY QUESTIONED ABOUT SEXUAL ABUSE THE JUDGE MUST COMPLY THE COURT SAID WHAT'S A LIFE WORTH IN EUROPE ACCORDING TO A BRITISH LAW FIRM'S SURVEY OF PERSONALINJURY AWARDS IT DEPENDS A LOT ON WHICH COUNTRY'S COURTS ARE INVOLVED THE STUDY BY DAVIES ARNOLD COOPER FOUND IN THE MOST EXTREME EXAMPLE THAT THE AWARD FOR THE INSTANT DEATH OF AN UNMARRIED 20YEAROLD FEMALE SECRETARY IS LIKELY TO BE 200 TIMES HIGHER IN ITALY THAN IN ENGLAND 249000 37138350 COMPARED WITH 1250 OTHER ESTIMATED AWARDS INCLUDE 76000 IN SPAIN 28500 IN FRANCE AND 2500 IN THE NETHERLANDS THE STUDY WHICH COVERS THE EUROPEAN UNION AND COUNTRIES OF THE EUROPEAN FREE TRADE ASSOCIATION LOOKED AT ESTIMATED COMPENSATION FOR 14 TYPES OF INJURY RANGING FROM KEYBOARD STRAIN TO DEATH THE SURVEY FOUND THAT ITALY TENDS TO HAVE THE HIGHEST AWARDS FOR BEREAVEMENT WHILE IRELAND HEADS THE LIST FOR THE SIZE OF PAINANDSUFFERING AWARDS NOT SURPRISINGLY THE STUDY FOUND A LOWER PROPENSITY TO SUE IN COUNTRIES WITH LOW AWARDS FOR NONECONOMIC LOSSES SUCH AS BEREAVEMENT OR PAIN AND SUFFERING IN DENMARK FOR EXAMPLE WHERE BEREAVEMENT LOSSES AREN'T EXPECTED ONLY 3 OF ACCIDENT VICTIMS ADMITTED TO A HOSPITAL CONSULT A LAWYER ABOUT THE POSSIBILITY OF FILING A CASE JUNDA WOO IN NEW YORK AND CHARLES GOLDSMITH IN BRUSSELS CONTRIBUTED TO THIS REPORT 9403220121 940322 MOTOROLA GETS CHINESE CONTRACT SCHAUMBURG ILL MOTOROLA INC SAID IT WON A CONTRACT VALUED AT MORE THAN 100 MILLION TO PROVIDE A DIGITAL COMMUNICATIONS SYSTEM TO THE BEIJING MUNICIPAL GOVERNMENT THE SYSTEM IS INTENDED TO BE USED FOR TELEPHONE SERVICE INITIALLY IN THE CHINESE CAPITAL BUT CAN BE EXPANDED TO ACCOMMODATE TWOWAY RADIO CALLS AND PAGING IT'S SCHEDULED TO BE IN OPERATION BY THE FIRST QUARTER OF 1995 9403220120 940322 INTERNATIONAL NORTH KOREA GETS ONE MORE CHANCE ON INSPECTIONS BY THOMAS E RICKS AND ROBERT S GREENBERGER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE INTERNATIONAL ATOMIC ENERGY AGENCY LAYING THE GROUNDWORK FOR EVENTUAL UNITED NATIONS ACTION GAVE NORTH KOREA ANOTHER CHANCE TO ALLOW FULL INSPECTION OF ITS NUCLEAR PROGRAM IN A RELATED ACTION PRESIDENT CLINTON SAID THE US SOON WILL SEND PATRIOT ANTIMISSILE BATTERIES TO SOUTH KOREA THE PRESIDENT CALLED IT A PURELY DEFENSIVE MOVE THAT WAS IN THE INTEREST OF BOTH THE US AND SOUTH KOREA IN ADDITION THE US IS EXPECTED SOON TO ANNOUNCE WITH SOUTH KOREA THAT THE TWO NATIONS' JOINT MILITARY EXERCISE CALLED TEAM SPIRIT WILL BE REVIVED BUT A PENTAGON OFFICIAL SAID THAT TO AVOID DAMAGING CROPS THAT WILL BE PLANTED SOON IN SOUTH KOREA THE EXERCISE PROBABLY WON'T BE STAGED UNTIL AFTER THE FALL HARVEST THE NUCLEAR AGENCY'S 35MEMBER BOARD OF GOVERNORS SENT THE UN SECURITY COUNCIL A COPY OF ITS RESOLUTION URGING NORTH KOREA TO DROP ITS RESISTANCE TO FULL INSPECTIONS AGENCY INSPECTORS WERE FRUSTRATED IN THEIR RECENT ATTEMPT TO INSPECT NORTH KOREAN FACILITIES TO DETERMINE WHETHER PYONGYANG HAS DIVERTED MATERIAL TO BUILD NUCLEAR WEAPONS THE US HAS SAID THAT IF THE STANDOFF OVER INSPECTIONS CONTINUES IT WILL MOVE FOR A SECURITY COUNCIL RESOLUTION ECHOING THE NUCLEAR AGENCY'S STATEMENT THAT ACTION PROBABLY WILL COME NEXT WEEK THE US AMBASSADOR TO THE UN MADELEINE ALBRIGHT ALSO PLANS TO INVITE HANS BLIX THE HEAD OF THE NUCLEAR AGENCY TO BRIEF SECURITY COUNCIL MEMBERS IN NEW YORK THE US WANTS TO BUILD A RECORD OF DIPLOMATIC PATIENCE TO SLOWLY BRING ALONG OTHER NATIONS SUCH AS CHINA THAT AREN'T INCLINED TO PUNISH NORTH KOREA IT'S A VERY CAREFUL STEPBYSTEP APPROACH BASED ON A STRATEGY OF GRADUAL ESCALATION SAID A US OFFICIAL US OFFICIALS ALSO ARE HOPING THAT BASED ON NORTH KOREA'S PREVIOUS BEHAVIOR THE ACTION AT THE UN MIGHT BE ENOUGH TO GET THE STALINIST STATE TO BACK DOWN US DIPLOMATS WERE HEARTENED YESTERDAY BY CHINA'S ABSTENTION AT THE INTERNATIONAL NUCLEAR AGENCY'S MEETING WHICH THEY TOOK TO BE A FORESHADOWING OF THE COURSE THAT BEIJING WILL TAKE WHEN THE NORTH KOREA ISSUE COMES BEFORE THE SECURITY COUNCIL 9403220119 940322 BUSINESS BRIEF NATWEST TO EXPAND NEW JERSEY MARKET WITH PURCHASE OF CITIZENS FIRST BANCORP LONDON NATIONAL WESTMINSTER BANK PLC ONE OF BRITAIN'S LARGEST COMMERCIAL BANKS SAID IT PLANS TO PAY 500 MILLION TO ACQUIRE CITIZENS FIRST BANCORP A 50BRANCH NEW JERSEY BANK THE PURCHASE WILL EXPAND THE MARKET SHARE OF NATWEST'S US BANKING SUBSIDIARY NATWEST BANCORP IN CERTAIN AFFLUENT AREAS OF NEW JERSEY CITIZENS FIRST WITH HEADQUARTERS IN GLEN ROCK NJ EMPLOYS 880 PEOPLE AND HAS NET ASSETS OF ABOUT 26 BILLION UNDER THE AGREEMENT SUBJECT TO CERTAIN APPROVALS NATWEST WILL PAY CITIZENS SHAREHOLDERS 975 A SHARE OR EXCHANGE 022034 NATWEST AMERICAN DEPOSITARY RECEIPT FOR EACH CITIZENS FIRST SHARE THE COMPANY SAID THAT BETWEEN 50 AND 60 OF THE CITIZENS FIRST SHAREHOLDERS WILL RECEIVE ADRS TAKING INTO ACCOUNT SHAREHOLDER PREFERENCE ONE ADR REPRESENTS SIX ORDINARY SHARES OF NATWEST'S PARENT COMPANY NATWEST PLANS TO MERGE CITIZENS FIRST WITH NATIONAL WESTMINSTER BANK NJ A UNIT OF NATWEST BANCORP AFTER THE MERGER NATWEST BANCORP WILL HAVE ASSETS OF ABOUT 26 BILLION AND A NETWORK OF 183 BRANCHES IN NEW JERSEY AND 127 IN NEW YORK CITY LONG ISLAND AND WESTCHESTER COUNTY NY ALLAN D NICHOLS CITIZENS FIRST CHAIRMAN STANDS TO PROFIT HANDSOMELY FROM THE ACQUISITION ACCORDING TO THE COMPANY'S 1993 PROXY HE HOLDS OPTIONS ON 347222 CITIZENS FIRST SHARES EXERCISABLE AT 360 A SHARE BASED ON THE 975ASHARE OFFERING PRICE MR NICHOLS'S OPTIONS HAVE AN UNDERLYING VALUE OF ABOUT 21 MILLION THE OPTIONS ACCORDING TO LAST YEAR'S PROXY WOULD BECOME IMMEDIATELY VESTED UPON COMPLETION OF ANY AGREEMENT MR NICHOLS SAYS HE HAS EXERCISED 20000 OPTIONS AND IF HIS EMPLOYMENT CONTRACT IS TERMINATED FOLLOWING THE DEAL MR NICHOLS WOULD RECEIVE A BONUS EQUAL TO HIS SALARY 430000 AND WOULD ALSO BE PAID FOR THE ENTIRETY OF HIS CURRENT CONTRACT WHICH EXPIRES FEB 26 1995 MR NICHOLS 56 YEARS OLD SAID HE EXPECTS HIS CONTRACT TO BE TERMINATED FOLLOWING THE ACQUISITION IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING CITIZENS FIRST CLOSED AT 9 UP 125 CENTS VOLUME USUALLY ABOUT 119000 SHARES SURGED TO 1233600 SHARES ON FRIDAY TRADING WAS ALSO HEAVY WITH CITIZENS FIRST GAINING 875 CENTS OR 11 TO 8875 ON MORE THAN 640000 SHARES 9403220118 940322 MUTUAL FUNDS SEC URGES FUND DIRECTORS TO TIGHTEN REINS STUDY MANAGERS' PERSONAL TRADES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL SCOTTSDALE ARIZ THE CHIEF OF THE SECURITIES AND EXCHANGE COMMISSION URGED MUTUALFUND DIRECTORS TO TIGHTEN THE REINS ON FUNDS THEY OVERSEE AND TO SCRUTINIZE FUND MANAGERS' PERSONAL TRADING SEC CHAIRMAN ARTHUR LEVITT TOLD A MUTUALFUND INDUSTRY CONFERENCE HERE THAT DIRECTORS SOMETIMES CALLED TRUSTEES OF EACH FUND OUGHT TO LOOK ESPECIALLY HARD AT FUNDMANAGER PERSONAL TRADES INVOLVING INITIAL PUBLIC OFFERINGS OR IPOS IF I WERE A DIRECTOR I WOULD HAVE RESERVATIONS ABOUT TRADING BY MANAGERS AND WOULD BE GREATLY TROUBLED BY THEIR BUYING AND SELLING IPOS MR LEVITT SAID IN A SPEECH TO THE MUTUAL FUNDS INVESTMENT MANAGEMENT CONFERENCE SPONSORED BY THE FEDERAL BAR ASSOCIATION AND CCH INC A PUBLISHER OF TAX AND BUSINESSLAW INFORMATION MUTUALFUND BOARDS GENERALLY AREN'T THOUGHT OF IN THE INDUSTRY AS AGGRESSIVE OVERSEERS BUT MR LEVITT SAID THEY SHOULD BE ASKING HARD AND SOMETIMES IMPOLITE QUESTIONS ABOUT PERSONAL TRADING SUCH AS WHETHER IT SHOULD BE BARRED OR ALLOWED ONLY WITH LIMITATIONS THE SEC IS EXAMINING PERSONAL TRADING BY PORTFOLIO MANAGERS AS PREVIOUSLY REPORTED MR LEVITT DECLINED TO COMMENT ON THAT INQUIRY LAST MONTH THE SEC ASKED 30 FUND GROUPS FOR DETAILED INFORMATION ON PERSONAL TRADING BY THEIR PORTFOLIO MANAGERS AS I LOOK AT THE ISSUES AS I STUDY THE NEWS REPORTS AND ANSWER THE QUESTIONS I KNOW THAT THIS ISSUE GOES BEYOND THE TRADING ACTIVITIES OF A FEW FUND PERSONNEL HE SAID ALTHOUGH THE MUTUALFUND INDUSTRY HAS BEEN RELATIVELY FREE OF MAJOR SCANDAL HE ADDED WHAT WE MUST AVOID IS A CLOUD ON ITS HORIZON IN THE FORM OF MILLIONS OF NEW CUSTOMERS RAISING QUESTIONS WE SHOULD BE ASKING OURSELVES ABOUT THE POTENTIAL APPEARANCE OF IMPROPRIETY THE SEC CHAIRMAN ALSO CALLED FOR DIRECTORS TO TAKE A LARGER ROLE IN GOVERNING PORTFOLIO MANAGERS' INVESTMENT PRACTICES FOR THEIR COMPANIES' FUNDS HE SAID DIRECTORS SHOULD ASK ABOUT THE USE OF DERIVATIVE PRODUCTS IN MUTUAL FUNDS AND MAKE SURE THAT ANY USES OF THEM ARE IN KEEPING WITH A FUND'S POLICIES DIRECTORS SHOULD REVIEW PRICING ISSUES TRADING STRATEGIES ACCOUNTING QUESTIONS AND INTERNAL CONTROLS AS WELL I AM NOT SUGGESTING THAT DIRECTORS IMMERSE THEMSELVES IN THE MINUTIAE OF INDIVIDUAL DERIVATIVES TRANSACTIONS BUT I AM SUGGESTING THAT THEY EXERCISE MEANINGFUL OVERSIGHT MR LEVITT SAID HE SAID LIQUIDITY ISSUES SURROUNDING COMPLEX INVESTMENTS THAT IS HOW EASILY THEY CAN BE SOLD SHOULD ALSO BE CAREFULLY WATCHED BY DIRECTORS ESPECIALLY OF FUNDS THAT INVEST IN SECURITIES IN EMERGING MARKETS MUTUALFUND DIRECTORS SHOULD ALSO EXAMINE THEIR COMPANIES' ROLES AS SHAREHOLDER ACTIVISTS IN AREAS SUCH AS ANTITAKEOVER MEASURES PROXY FIGHTS FOR CONTROL OF A PORTFOLIO COMPANY ELECTIONS AND EVEN EXECUTIVECOMPENSATION PROPOSALS WHERE APPROPRIATE SOME MIGHT THINK THE ROLE I'VE OUTLINED FOR DIRECTORS IS OVERAMBITIOUS OR EVEN UNNECESSARY MR LEVITT SAID BUT DIRECTORS WHO DO THEIR JOB WELL CAN GIVE ENHANCED CONFIDENCE TO THE INVESTORS ON WHOM YOUR INDUSTRY AND ITS CREDIBILITY DEPEND I THINK HE IS RIGHT ON TARGET AND WE'VE BEEN TALKING ABOUT THIS A LOT SAID LEO BAILEY AN INDEPENDENT DIRECTOR OF SOME OF THE MUTUAL FUNDS OF BALTIMOREBASED T ROWE PRICE ASSOCIATES INC DIRECTORS PAY ATTENTION TO FEES PERFORMANCE AND COST OF OPERATIONS AND THIS WILL BE A WHOLE NEW ELEMENT FOR SOME OTHER FUND GROUPS ANOTHER HOT TOPIC AT THE CONFERENCE IS THE PROPOSAL FOR OFFTHEPAGE MUTUAL FUND INVESTING IN WHICH INVESTORS COULD READ ABOUT A FUND IN A NEWSPAPER OR MAGAZINE ADVERTISEMENT AND IMMEDIATELY INVEST WITHOUT HAVING TO RECEIVE THE ENTIRE STANDARD PROSPECTUS DOCUMENT PERSONALLY BARRY BARBASH DIRECTOR OF THE SEC'S DIVISION OF INVESTMENT MANAGEMENT SAID IN A SPEECH THAT THE SEC IS CONDUCTING CONSUMER TESTS WITH VARIOUS FORMS OF A SHORTENED PROSPECTUS AND COULD HAVE A DECISION EARLY THIS SUMMER WE ENDORSE THE SHORTER PROSPECTUS BUT WHETHER IT WILL BE IN AN AD FORM OR LOOK MORE LIKE A PAGE IN A PROSPECTUS HASN'T YET BEEN DECIDED HE SAID 9403220117 940322 LEHMAN BROS UNIT IS BEING PROBED IN 1991 NOTE SALE BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON FEDERAL INVESTIGATORS HAVE BEEN LOOKING INTO THE ACTIVITIES OF A UNIT OF LEHMAN BROTHERS IN CONNECTION WITH A SQUEEZE IN TREASURY TWOYEAR NOTES SOLD IN APRIL 1991 PEOPLE FAMILIAR WITH THE MATTER SAID THE GOVERNMENT'S INTEREST CENTERS ON LEHMAN'S ALLEGED ROLE IN FINANCING THE POSITIONS IN THE APRIL NOTES OF TWO HEDGE FUNDS STEINHARDT PARTNERS LP AND CAXTON CORP FOR A TIME DURING THE SUMMER OF 1991 THE APRIL NOTES WERE SUBJECTED TO A PROTRACTED SQUEEZE THAT WAS OVERSHADOWED BY A HIGHPROFILE SQUEEZE OF TREASURY TWOYEAR NOTES SOLD IN MAY 1991 IN THE MAY SQUEEZE SALOMON BROTHERS INC AND OTHERS WERE ACCUSED OF RESTRICTING THE SUPPLY OF THE NOTES THEREBY DRIVING UP THE PRICE LEHMAN GOVERNMENT SECURITIES INC A WHOLLY OWNED SUBSIDIARY OF LEHMAN BROTHERS HAS BEEN LISTED IN JUSTICE DEPARTMENT ANTITRUST DIVISION SUBPOENAS ALONG WITH STEINHARDT CAXTON AND OTHER PARTIES WHOSE GOVERNMENTBONDMARKET ACTIVITIES THE DEPARTMENT IS INVESTIGATING DURING THE PERIOD IN QUESTION THE FIRM WAS CALLED SHEARSON LEHMAN BROTHERS STEVEN FAIGEN A LEHMAN BROTHERS SPOKESMAN SAID THE FIRM LIKE OTHER PRIMARY DEALERS HAS RESPONDED TO GOVERNMENT REQUESTS FOR INFORMATION REGARDING TRADING IN THE TREASURY SECURITIES MARKET AND NOTED THAT SUCH REQUESTS DATE BACK AS FAR AS 2 1/2 YEARS HE SAID THAT LEHMAN STRONGLY BELIEVES THAT OUR TRADING ACTIVITIES IN THESE MARKETS WERE AND ARE PROPER AND THAT THE COMPANY IS NOT AWARE OF ANY ALLEGATION BY THE GOVERNMENT TO THE CONTRARY THE COMPANY AS A POLICY REFUSES TO DISCUSS SPECIFIC TRADING ACTIVITIES THE ANTITRUST DIVISION HAS BEEN CONDUCTING A LENGTHY INQUIRY INTO BOTH THE APRIL AND MAY SQUEEZES SALOMON IN 1992 SETTLED ANTITRUST CHARGES THAT IT MANIPULATED THE MAY NOTES TO CREATE A SQUEEZE AND IS IMMUNE UNDER THE TERMS OF ITS SETTLEMENT FROM ANY CHARGES WITH RESPECT TO THE APRIL SQUEEZE THE SECURITIES AND EXCHANGE COMMISSION ALSO IS CONTINUING ITS INVESTIGATION OF THE APRIL SQUEEZE NEITHER THE JUSTICE DEPARTMENT NOR THE SEC WOULD COMMENT ON THE LEHMAN MATTER A LAWYER FOR STEINHARDT HAD NO COMMENT ON HIS CLIENT'S DEALINGS WITH LEHMAN IN ARGUMENTS IN A PRIVATE LAWSUIT DEALING WITH THE 1991 TREASURY MARKET SQUEEZES STEINHARDT RECENTLY SAID IT WILL CLAIM THAT THE ANTITRUST LAWS ARE IMPLICITLY REPEALED IN THE MARKET BECAUSE OF THE EXTENSIVE REGULATION UNDER OTHER LAWS AND EXTENSIVE REGULATION BY THE TREASURY AND FEDERAL RESERVE CAXTON'S LAWYER COULDN'T BE REACHED FOR COMMENT 9403220116 940322 BUSINESS BRIEF FIRST FIDELITY TO BUY BALTIMORE BANCORP IN 346 MILLION PACT LAWRENCEVILLE NJ FIRST FIDELITY BANCORP SAID IT WILL PURCHASE BALTIMORE BANCORP FOR 346 MILLION ADVANCING THE STRATEGY OF EXTENDING ITS FRANCHISE FROM MARYLAND TO MASSACHUSETTS UNDER THE AGREEMENT FIRST FIDELITY WILL PAY A HEFTY PREMIUM FOR THE PARENT COMPANY OF THE BANK OF BALTIMORE THE ACQUISITION PRICE AMOUNTS TO 21 TIMES THE BANK'S BOOK VALUE ACCORDING TO NANCY A BUSH A REGIONAL BANK ANALYST WITH BROWN BROTHERS HARRIMAN & CO IT'S AGGRESSIVE SAID JAMES J MCDERMOTT JR PRESIDENT OF KEEFE BRUYETTE & WOODS INC IT'S A BIG PRICE AND IT TAKES FIRST FIDELITY INTO A NEW MARKET IT GETS THEM OUT OF THE NEW JERSEY RUT MS BUSH ADDED REFERRING TO AN ECONOMIC DOWNTURN IN THE STATE THAT STARTED WITH THE DECLINE OF REAL ESTATE VALUES AND MAY CONTINUE WITH LAYOFFS BY AMERICAN TELEPHONE & TELEGRAPH CO BALTIMORE BANCORP WITH ASSETS OF 22 BILLION HAS BEEN ACTIVELY MARKETING ITSELF FOR SEVERAL MONTHS IN 1991 EDWIN F HALE SR THE BANK'S CURRENT CHAIRMAN AND CHIEF EXECUTIVE LED A PROXY FIGHT THAT RESULTED IN THE OUSTER OF THE BANK'S MANAGEMENT WHICH HAD WANTED TO REMAIN INDEPENDENT AT THE TIME MR HALE SAID HE WOULD HELP THE BANK RECOVER ITS FINANCIAL HEALTH WITH AN EYE TOWARD ITS EVENTUAL SALE FIRST FIDELITY WHICH HAS 338 BILLION IN ASSETS WILL PAY 2075 IN CASH FOR BALTIMORE BANCORP'S COMMON SHARES THE BANK EXPECTS TO COMPLETE THE PURCHASE BY THE END OF THIS YEAR 9403220115 940322 HEARD ON THE STREET SOME CLOSEDEND BOND FUNDS ARE ATTRACTING BARGAIN HUNTERS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN IT COMES TO PUBLICLY TRADED BOND FUNDS INVESTORS JUST CAN'T MAKE UP THEIR MINDS WHICH IS GOOD NEWS FOR TODAY'S BARGAIN HUNTERS YIELDHUNGRY INVESTORS SEEM TO LOVE SOME OF THESE CLOSED END BOND FUNDS BIDDING THEM UP TO ABSURD LEVELS MEANWHILE THEY HATE OTHERS DRIVING THEM DOWN TO DIRTCHEAP PRICES IT'S RIDICULOUS ARGUES RON OLIN PRESIDENT OF DEEP DISCOUNT ADVISORS AN ASHEVILLE NC MONEY MANAGER YOU'VE GOT SOME OF THESE FUNDS TRADING AT PREMIUMS WHILE YOU'VE GOT OTHERS AT 12 DISCOUNTS MR OLIN IS REFERRING TO THE WAY PUBLICLY TRADED FUNDS TRADE FOR MORE OR LESS THAN THE VALUE OF THEIR UNDERLYING PORTFOLIOS IN ESSENCE CLOSEDEND FUNDS HAVE TWO VALUES THERE'S THE PRICE OF THE FUND'S PUBLICLY TRADED STOCK AND THEN THERE'S THE PERSHARE VALUE OF THE FUND'S BONDPORTFOLIO HOLDINGS ALSO KNOWN AS THE FUND'S NET ASSET VALUE AS BOND PRICES DROPPED AND YIELDS SURGED IN RECENT MONTHS SOME CLOSEDEND BOND FUNDS HAVE TAKEN IT ON THE CHIN THEIR SHARES HAVE TUMBLED SO THAT THEY TRADE AT A SHARP DISCOUNT TO THEIR PERSHARE PORTFOLIO VALUE A HIGHLY DISCOUNTED TAXABLEBOND FUND IS PROBABLY THE BEST CONTRARIAN PLAY AMONG CLOSEDEND FUNDS RIGHT NOW MR OLIN SAYS AMONG HIS FAVORITE BOND FUNDS IS FORT DEARBORN INCOME SECURITIES WHICH CLOSED YESTERDAY AT 15 OR 7 BELOW ITS 1618 PERSHARE PORTFOLIO VALUE AS OF FRIDAY ACCORDING TO LIPPER ANALYTICAL SERVICES FORT DEARBORN RANKS AS THE SECONDBESTPERFORMING INVESTMENTGRADE BOND FUND DURING THE PAST 10 YEARS OUT OF 17 CLOSEDEND FUNDS HISTORICALLY THE FUND'S SHARES HAVE TENDED TO TRADE IN LINE WITH ITS PERSHARE PORTFOLIO VALUE BUT THE DISCOUNT OPENED UP WHEN THE FUND RECENTLY SOLD MORE SHARES THROUGH A RIGHTS OFFERING IT'S ONE OF THE BEST BOND FUNDS OVER THE LAST EIGHT OR 10 YEARS MR OLIN SAYS I THINK THAT IT WILL GO BACK TO NET ASSET VALUE MR OLIN ALSO OWNS BUNKER HILL INCOME SECURITIES THE FUND CLOSED YESTERDAY AT 15 1/2 JUST 5 LESS THAN FRIDAY'S 1638 PORTFOLIO VALUE BUT THE FUND'S SHAREHOLDERS WILL VOTE APRIL 4 ON WHETHER TO MERGE BUNKER HILL WITH A REGULAR OPENEND MUTUAL FUND WHICH WOULD HAVE THE EFFECT OF ELIMINATING THE FUND'S DISCOUNT IF EVERYTHING GOES ACCORDING TO PLAN IT WILL BE OPENENDED WITHIN THE NEXT FEW MONTHS MR OLIN SAYS MR OLIN SAYS HE ALSO LIKES AIM STRATEGIC INCOME FUND FIRST BOSTON INCOME FUND FIRST BOSTON STRATEGIC INCOME FUND AND INDEPENDENCE SQUARE INCOME SECURITIES THESE FUNDS TRADE AT DISCOUNTS OF MORE THAN 10 THAT MEANS THAT TODAY'S BUYER IS GETTING THESE FUNDS FOR LESS THAN 90 CENTS ON THE DOLLAR IF INTEREST RATES CONTINUE TO RISE THAT DISCOUNT MAY HELP TO CUSHION THE BLOW DAVID TEPPER A SAN FRANCISCO INVESTMENT ADVISER IS ALSO FINDING BARGAINS AMONG BEATENUP BOND FUNDS HE OWNS MFS INTERMEDIATE INCOME TRUST AND PUTNAM INTERMEDIATE GOVERNMENT INCOME TRUST WHICH TRADE AT DISCOUNTS OF 12 AND 11 RESPECTIVELY BY STICKING WITH INTERMEDIATETERM BOND FUNDS I'M TRYING TO SHELTER MYSELF JUST IN CASE I'M WRONG AND RATES GO HIGHER THAN I THINK MR TEPPER SAYS I DON'T THINK THE LONG BOND WILL GO ABOVE 7 OR 7 1/4 BUT I JUST HOPE THAT'S NOT WISHFUL THINKING ON MY PART THE BENCHMARK 30YEAR TREASURY BOND YIELD LATELY HAS BEEN ZIGZAGGING AROUND 69 BUT WHILE MR TEPPER IS FINDING BARGAINS HE'S ALSO ASTONISHED AT THE LOFTY PRICES PAID FOR SOME BOND FUNDS ANYBODY OWNING BOND FUNDS SHOULD DOUBLECHECK THEIR HOLDINGS AND THINK ABOUT MOVING FROM A FUND WITH A 10 PREMIUM TO ONE WITH A 10 DISCOUNT HE SAYS FUNDS AT RICH PREMIUMS WILL BE ESPECIALLY VULNERABLE IF THEY HAVE TO CUT THEIR DIVIDEND FIRST AUSTRALIA PRIME INCOME FUND FOR INSTANCE SAID FRIDAY IT WAS CUTTING ITS MONTHLY DIVIDEND TO 825 CENTS A SHARE FROM 9 CENTS THE FUND'S SHARES RECENTLY TRADED AT A 9 PREMIUM BUT THE NEWS SENT THE STOCK TUMBLING 6 ON FRIDAY OTHER BOND FUNDS WITH SEDUCTIVE DIVIDENDS CONTINUE TO TRADE AT HEFTY PREMIUMS INCLUDING HIGHYIELD JUNKBOND FUNDS SUCH AS CIGNA HIGHINCOME SHARES VAN KAMPEN MERRITT INTERMEDIATETERM HIGHINCOME TRUST AND VAN KAMPEN MERRITT LIMITEDTERM HIGHINCOME TRUST THESE FUNDS BOAST DOUBLEDIGIT YIELDS BUT THEIR SHARES TRADE AT DOUBLEDIGIT PREMIUMS CONSIDER FOR INSTANCE CIGNA HIGHINCOME SHARES WHICH FLAUNTS A 101 YIELD AND TRADES AT A 17 PREMIUM THE FUND IS RUN BY ALAN PETERSEN WHO ALSO COMANAGES AIM HIGHYIELD FUND A REGULAR OPENEND MUTUAL FUND THE AIM FUND HAS A BETTER FIVEYEAR RECORD AND IT'S ALSO A LOT CHEAPER TO BUY TO PURCHASE THE AIM FUND YOU PAY ONLY A 475 SALES COMMISSION I DON'T THINK THERE'S MUCH THAT'S RATIONAL ABOUT THAT PREMIUM ON CIGNA HIGHINCOME SHARES SAYS CATHERINE GILLIS EDITOR OF MORNINGSTAR CLOSEDEND FUNDS A CHICAGO NEWSLETTER IT ISN'T WORTH PAYING A 17 PREMIUM ESPECIALLY WHEN YOU CAN GET THE OPENEND FUND SO MUCH MORE CHEAPLY MR PETERSEN COULDN'T BE REACHED FOR COMMENT PHILLIP GOLDSTEIN MANAGER OF OPPORTUNITY PARTNERS A NEW YORK LIMITED PARTNERSHIP SAYS INVESTORS SHOULD AVOID BUYING FUNDS BASED ON THEIR YIELD INSTEAD HE ADVISES FOCUSING ON A FUND'S PREMIUM OR DISCOUNT I DON'T THINK YOU CAN GO TOO FAR WRONG WITH A FUND AT A DOUBLEDIGIT DISCOUNT HE SAYS AND STAY AWAY FROM THOSE AT PREMIUMS IT'S JUST ASKING FOR TROUBLE ANY DISAPPOINTMENT COULD HAMMER THOSE FUNDS THAT ARE AT PREMIUMS 9403220114 940322 WHO'S NEWS FORDHAM UNIVERSITY FORDHAM UNIVERSITY NEW YORK ERNEST J SCALBERG 48 YEARS OLD WAS NAMED DEAN OF FORDHAM UNIVERSITY'S GRADUATE SCHOOL OF BUSINESS ADMINISTRATION AND DEAN OF THE BUSINESS FACULTY EFFECTIVE APRIL 4 MR SCALBERG SUCCEEDS WILLIAM J SMALL WHO RESUMES HIS RESPONSIBILITIES AS DIRECTOR OF THE UNIVERSITY'S CENTER FOR COMMUNICATIONS MR SCALBERG HAS BEEN ASSOCIATE DEAN AT THE BUSINESS SCHOOL AT THE UNIVERSITY OF CALIFORNIA LOS ANGELES 9403220113 940322 CORPORATE GIVING FOR 1993 WAS FLAT SURVEY INDICATES NEW YORK US CORPORATE GIVING TO CHARITABLE CAUSES WAS FLAT LAST YEAR AND IS EXPECTED TO REMAIN STAGNANT THIS YEAR ACCORDING TO AN ANNUAL SURVEY BY THE CONFERENCE BOARD ALTHOUGH THE ECONOMY IS IMPROVING EXECUTIVES ARE STILL CAUTIOUS ABOUT MAKING INCREASES IN BUDGETS AND BUDGET ESTIMATES SAID MARIA BUENAVENTURA AUTHOR OF THE STUDY THE CONFERENCE BOARD SAID THAT WHEN COMPLETE DATA BECOME AVAILABLE THEY WILL CONFIRM A LESS THAN 1 INCREASE IN CORPORATE GIVING FOR 1993 THE BOARD'S JUSTCOMPLETED SURVEY FOR 1992 COSPONSORED WITH THE COUNCIL FOR AID TO EDUCATION SHOWED CORPORATE GIFTS WERE UP 27 THE PERCENTAGE IS BASED ON A MEDIAN NUMBER FROM 272 COMPANIES THAT ALSO RESPONDED TO THE PREVIOUS YEAR'S SURVEY THE GREATEST SHARE OF THE CONTRIBUTION DOLLAR 371 WENT TO EDUCATION FOLLOWED BY HEALTH AND HUMAN SERVICES AT 277 ALTHOUGH THE 1992 INCREASE WAS SLIGHTLY HIGHER THAN THE MEDIAN 2 CHANGE REPORTED IN 1991 IT STILL INDICATES SLOWER GROWTH IN CORPORATE CONTRIBUTIONS WHEN COMPARED WITH AN 8 GROWTH RATE IN THE MID1980S AND 5 IN 1990 THE CONFERENCE BOARD SAID ALTHOUGH THERE IS RELATIVELY FLAT GROWTH FOR CONTRIBUTIONS IN THE US THERE IS A RISE IN OVERSEAS GIVING MS BUENAVENTURA SAID 9403220112 940322 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 CALIFORNIA ENERGY CO 400 MILLION OF SENIOR DISCOUNT NOTES DUE JAN 15 2004 PRICED FRIDAY WITH A ZERO COUPON AT 75523 TO YIELD 1025 ACCORDING TO MCM CORPORATEWATCH THE COUPON WILL RISE TO 1025 ON JULY 15 1997 THE NOTES WHICH ARE NONCALLABLE FOR FIVE YEARS ARE RATED BA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN BANK SYSTEM 112 MILLION OF NOTES DUE MARCH 28 1996 PRICED INITIALLY AT PAR TO YIELD 5185 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF SEVEN BASIS POINTS ABOVE THE TREASURY'S WHEN ISSUED TWOYEAR NOTE THE ISSUE WILL BE SOLD THROUGH UNDERWRIT ERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF DEBENTURES DUE MARCH 28 2001 PRICED AT PAR TO YIELD 678 ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 46 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDER WRITERS LED BY LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE APRIL 1 2004 PRICED AT PAR TO YIELD 709 ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 57 BASIS POINTS ABOVE TREASURYS AND WILL BE SOLD THROUGH UNDER WRITERS LED BY MORGAN STANLEY & CO DIGITAL EQUIPMENT CORP 400 MILLION OF CUMULATIVE PERPETUAL PREFERRED STOCK PRICED AT PAR FOR A 8875 DIVIDEND YIELD THE 16 MILLION SHARES WERE PRICED AT 25 APIECE ACCORDING TO MCM CORPORATEWATCH THE PREFERRED STOCK WHICH IS NONCALLABLE FOR FIVE YEARS IS RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P THE DIVIDEND WILL BE PAID QUARTERLY ON JAN 15 APRIL 15 JULY 15 AND OCT 15 EACH YEAR THE FIRST DIVIDEND PAYABLE APRIL 15 WILL BE FOR LESS THAN A FULL QUARTER AND WILL BE PAID TO HOLDERS OF RECORD ON MARCH 28 THE STOCK ISN'T CONVERTIBLE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC GASONICS INTERNATIONAL CORP INITIAL OFFERING OF 22 MILLION COMMON SHARES PRICED AT 13 APIECE THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES JDN REALTY CORP INITIAL OFFERING OF 59 MILLION COMMON SHARES PRICED AT 22 APIECE THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING REMIC TRUST 199466 IS BACKED BY VARIOUS FANNIE MAE REMIC TRANCHES AND THE AGENCY'S STRIP CLASSES FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING REMIC TRUST 199464 IS BACKED BY FANNIE MAE'S REMIC TRANCHES AND THE AGENCY'S STRIP CLASSES BARINGS BV UNITED KINGDOM PARENT 150 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 2001 AT ISSUE AND REOFFER PRICE 9944 VIA BARING BROTHERS & CO AND CS FIRST BOSTON INC PAYABLE QUARTERLY AT THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE PLUS 0375 POINT CALL AND PUT OPTION EXERCISABLE QUARTERLY FROM MARCH 1999 AT PAR GUARANTOR BARINGS PLC FEES 025 FUJITA CORP JAPAN 40 BILLION YEN OF BONDS OFFERED IN JAPAN THROUGH LEAD MANAGER NOMURA SECURITIES CO INCLUDING 20 BILLION YEN OF 39 FOURYEAR BONDS AT ISSUE PRICE PAR AND 20 BILLION YEN OF 45 SIXYEAR BONDS AT PAR THE CHIEF TRUSTEE FOR THE FOURYEAR ISSUE IS TOKAI BANK AND FOR THE SIXYEAR ISSUE IS SAKURA BANK PAYMENT FOR THE BONDS IS DUE MARCH 30 THE JAPAN BOND RESEARCH INSTITUTE RATES THE NEW BONDS SINGLEAMINUS TOYOTA MOTOR CREDIT CORP JAPANESE PARENT 840 MILLION FRENCH FRANCS OF EUROBONDS DUE APRIL 14 1995 AT ISSUE AND REOFFER PRICE PAR VIA BANQUE PARIBAS COUPON 763 INTEREST ACCRUES ONLY ON DAYS WHEN THREEMONTH PARIS INTERBANK OFFERED RATE WITHIN RANGES 635 TO 565 FOR UPPER LIMIT AND 56 TO 425 FOR LOWER LIMIT FEES UNDISCLOSED 9403220111 940322 US IS LOSING MILLIONS ON VACANT UNITS OF SUBSIDIZED HOUSING HUD REPORTS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US IS LOSING MILLIONS OF DOLLARS BY SUBSIDIZING VACANT UNITS IN LARGE PUBLIC HOUSING AUTHORITIES BECAUSE THE BUILDINGS CAN'T LEGALLY BE TORN DOWN A REPORT BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CONCLUDES THE STUDY BY HUD'S INSPECTOR GENERAL RESULTS OF WHICH WILL BE RELEASED TODAY AT HEARINGS OF A HOUSE PANEL INVESTIGATING THE FEDERAL GOVERNMENT'S PROBLEMPLAGUED 6 BILLION ANNUAL SUBSIDY PROGRAM FOR CITY PUBLIC HOUSING AUTHORITIES FINDS THAT INCREASING NUMBERS OF SUCH VACANT UNITS PROVIDE A BREEDING GROUND FOR DRUG DEALERS ALTHOUGH IN RECENT YEARS HUD HAS PAID CLOSER ATTENTION TO THE MANAGEMENT PROBLEMS OF THE LOCAL AUTHORITIES IT IS SUBSIDIZING EVEN TAKING OVER SEVEN OF THEM IN THE PROCESS MANY OF THE CONDITIONS HAVE WORSENED ONE OF THE BIGGEST OBSTACLES IS A 1987 FEDERAL LAW REQUIRING THE REPLACEMENT OF DECREPIT PUBLIC HOUSING PROJECTS ON A ONEFORONE BASIS ACCORDING TO THE REPORT CONGRESS HAS REPEATEDLY CUT DEVELOPMENT FUNDS TO UPGRADE THE UNITS AND AS A RESULT THE VACANCY RATE FOR SOME OF THE NATION'S LARGEST PUBLIC HOUSING AUTHORITIES INCLUDING PHILADELPHIA THE DISTRICT OF COLUMBIA DETROIT NEW ORLEANS AND CLEVELAND IS NOW OVER 20 UNDER THE 1987 LAW A HOUSING AUTHORITY IS REQUIRED TO MAINTAIN VACANT UNITS UNTIL THEY CAN BE REPLACED OR UNTIL THERE IS ENOUGH MONEY TO PROVIDE RENTS FOR EQUIVALENT UNITS FOR 15 YEARS IN PHILADELPHIA THE STUDY FOUND THAT THE US HAS PAID 79 MILLION TO MAINTAIN LARGELY VACANT UNITS IN A COMPLEX OF EIGHT BUILDINGS IN ANOTHER PROJECT IN THAT CITY THE DEBATE OVER WHAT TO DO ABOUT TWO VACANT HIGHRISES CONTAINING 448 UNITS HAS LASTED FOR 18 YEARS IN CLEVELAND THE US HAS PAID 47 MILLION IN THE LAST SEVEN YEARS TO MAINTAIN VACANT UNITS WHILE THE HOUSING AUTHORITY WAS LOSING 24 MILLION A YEAR THAT WOULD HAVE COME FROM RENTING THE UNITS THE REPORT SAID NEW ORLEANS WHICH HAS BEEN UNABLE TO GET FUNDS FOR REPLACEMENTS HAS PERSUADED HUD TO RELAX ITS RULES AND EARMARK AS MUCH AS 100 MILLION TO MODERNIZE A NOTORIOUSLY BAD PROJECT CALLED DESIRE EVEN THOUGH IT IS LOCATED ON A FORMER DUMP AND REPLACEMENT COSTS FOR THE 1837 UNITS APPEAR TO BE CHEAPER MEANWHILE NEW ORLEANS WHICH IS LOSING POPULATION HAS SOME 37000 VACANT HOUSING UNITS THERE IS ALL KINDS OF CRAZINESS GOING ON WITH THIS PROGRAM WHAT'S SO FRUSTRATING IS THAT THEY KEEP PUTTING ALL THIS MONEY INTO IT SAID REP COLLIN C PETERSON D MINN CHAIRMAN OF THE HOUSING SUBCOMMITTEE OF HOUSE GOVERNMENT OPERATIONS COMMITTEE HE SAYS HE WILL INTRODUCE LEGISLATION TO REPEAL THE ONEFORONE REPLACEMENT REQUIREMENT AND FORCE HUD TO PUT MORE HOUSING AUTHORITIES WITH LONGTERM MANAGEMENT PROBLEMS UNDER PRIVATE MANAGEMENT WE INVITED FOUR OR FIVE DIRECTORS OF TROUBLED PUBLIC HOUSING AUTHORITIES TO TESTIFY AT THE HEARING BUT WE COULDN'T GET ANY OF THEM BECAUSE THEY'RE ALL BEING FIRED OR REPLACED REP PETERSON ADDED 9403220110 940322 WHO'S NEWS KLH ENGINEERING GROUP INC KLH ENGINEERING GROUP INC ENGLEWOOD COLO RICHARD KENDALL CHIEF FINANCIAL OFFICER OF THIS ENGINEERING CONCERN WAS NAMED TO THE ADDITIONAL POSTS OF CHAIRMAN AND PRESIDENT MR KENDALL 37 YEARS OLD SUCCEEDS RICHARD L GORMAN 45 WHO THE COMPANY SAID INTENDS TO RETURN TO PRIVATE ENGINEERING PRACTICE MR GORMAN HAD BEEN INTERIM PRESIDENT SINCE NOVEMBER WHEN THE COMPANY RELIEVED ITS THENCHAIRMAN FREDERICK C BOETHLING OF HIS DUTIES AS PRESIDENT AND CHIEF EXECUTIVE MR GORMAN WAS NAMED CHAIRMAN IN DECEMBER AFTER MR BOETHLING RESIGNED THAT POST 9403220109 940322 CORRECTIONS & AMPLIFICATIONS VF CORP'S INTIMATE APPAREL BRANDS IN EUROPE INCLUDE LOU BOLERO SILHOUETTE CARINA SILTEX AND VARIANCE IN YESTERDAY'S HEARD ON THE STREET COLUMN THESE WERE MISIDENTIFIED AS JEANS BRANDS VF'S JEANS BRANDS IN EUROPE ARE LEE WRANGLER AND MAVERICK GREYHOUND FINANCIAL CORP IS A UNIT OF GFC FINANCIAL CORP YESTERDAY'S NEW SECURITIES ISSUES COLUMN MISSTATED THE PARENT AS GREYHOUND DIAL CORP 9403220108 940322 STORMS TO TRIM DONEGAL PROFIT MARIETTA PA DONEGAL GROUP INC A PROPERTY AND CASUALTY INSURANCE HOLDING COMPANY SAID 1994 WINTER STORMS WOULD REDUCE FIRSTQUARTER EARNINGS BY 940000 OR 23 CENTS A SHARE THE COMPANY SAID A MAJORITY OF LOSSES INVOLVED HOMEOWNERS POLICIES FOR THE 1993 FIRST QUARTER DONEGAL REPORTED NET INCOME OF 16 MILLION OR 51 CENTS A SHARE 9403220107 940322 BUSINESS WORLD BETTER AIMED TO PLEASE BY TIM W FERGUSON THE PUNCH LINE OF THIS STORY IS IMPROVED CUSTOMER SERVICE IN THE AMERICAN ECONOMY I SAY THAT UP FRONT TO BE READERFRIENDLY BECAUSE A BIT OF A TALE FOLLOWS BY WAY OF ILLUSTRATION RECENTLY A SMOKE DETECTOR EXPIRED IN MY HOME LOUDLY AS IS THEIR WONT SOME DETECTIVE WORK LOCATED THE MAKER WHICH HAD BEEN ACQUIRED AND MOVED ACROSS COUNTRY BUT NOW IT HAD AN 800 NUMBER SO LOCATION DIDN'T MUCH MATTER SCORE ONE POINT FOR THIS AND OTHER BUSINESSES THAT HAVE ADDED TOLLFREE LINES SEE ACCOMPANYING ILLUSTRATION WSJ MARCH 22 1994 ABOUT 80 OF THAT TRAFFIC IS CONSUMER USE FROM THERE THINGS WENT DOWNHILL I ASKED FOR CUSTOMER SERVICE AND WAS SWITCHED TO A YOUNG WOMAN WHO I'D HAVE TO SAY WAS IN THE WRONG DEPARTMENT THE TONE OF VOICE WAS THE FIRST CLUE YOU KNOW WHAT I MEAN AN IMMEDIATE INDICATION OF WEARY IMPATIENCE IT DIDN'T HELP THAT I WAS HAVING TO DESCRIBE A MECHANICAL PROBLEM WHICH IS NOT MY STRONG SUIT HER APPARENT EAGERNESS TO GET OFF THE LINE TO DO WHAT ONLY INCREASED AS I TRIED TO EXPLORE MY OPTIONS AND WHAT THEY WERE LIKELY TO COST ULTIMATELY SHE SAID I'D HAVE TO TAKE THE DETECTOR TO AN AREA DISTRIBUTOR WHICH WOULD THEN SHIP IT BACK FOR CLEANING AND RECALIBRATING 14 PLUS HANDLING NO I COULDN'T SHIP IT MYSELF AND AS IT TURNED OUT THE DISTRIBUTOR WOULDN'T BECAUSE IT ONLY DEALT WHOLESALE I WAS GIVEN THE NAME OF A LOCAL DEALER WHO HELPFULLY TOLD ME THAT I SHOULD JUST BUY A SIMPLER REPLACEMENT OR I COULD JUST VACUUM OUT DUST MYSELF I BELABOR THE BACKGROUND BECAUSE THERE WERE TWO ELEMENTS THE GET LOST TONE AND THE REPAIR RUNAROUND THAT REMINDED ME OF THE BAD OLD DAYS BACK THEN A DISTANT COMPANY WOULD GIVE YOU THE BUSINESS NOW THAT SEEMS UNUSUAL THAT REFLECTS A SEA CHANGE IN CORPORATE ATTITUDES EXTENDING FROM THE AUTO COMPANIES TO THE REIGNING RETAILING CHAINS THAT HAVE MADE CUSTOMER CARE THEIR HALLMARK SURVEY DATA SUGGEST BUSINESS ESPECIALLY IN SERVICES WAS BOOSTING CUSTOMER RELATIONS BUDGETS THROUGH THE EARLY 1990S BUT TRAINING IS FOUR TIMES AS LIKELY FOR STAFF OR LINE EMPLOYEES AS FOR UPPER MANAGEMENT ACCORDING TO THE INTERNATIONAL CUSTOMER SERVICE ASSOCIATION INVESTMENTS OF THIS SORT MAY BE PAYING OFF HIGHEST MARKS FOR CUSTOMER SATISFACTION AS MEASURED BY THE INDIANA FIRM OF WALKER CSM FOR ITS CORPORATE CLIENTS ROSE TO 67 FROM 56 IN FINANCIAL SERVICES BETWEEN 1988 AND 1992 AND BY SEVEN PERCENTAGE POINTS IN TELECOMMUNICATIONS BETWEEN 1991 AND 1993 INTERESTINGLY BOTH THOSE INDUSTRIES COST CONSUMERS MORE AT COMMON ENTRY POINTS CHECKING ACCOUNTS PHONE AND CABLE ACCESS THAN THEY ONCE DID BUT INPUTS AREN'T SUFFICIENT FOR THIS KIND OF OUTPUT IT'S GREATER COMPETITION THAT'S LIT A FIRE UNDER PREVIOUSLY COMPLACENT COMPANIES THAT'S COME FROM BREAKING DOWN BARRIERS REGULATORY TECHNOLOGICAL AND TRADE WITHOUT THAT LITTLE QUALITYCONSCIOUSNESS WOULD HAVE SET IN DESPITE ALL THE GURUS AND PRIZES THOSE SECTORS OF US INDUSTRY WITH THE MOST COMPETITIVE INTENSITY AUTOS ELECTRONICS RETAIL ARE THE MOST SATISFYING TO CUSTOMERS SAYS DAN FINKELMAN OF MANAGEMENT CONSULTANT MCKINSEY & CO BUT THE SHOWDOWN OVER SERVICE IN SUCH FIELDS HE SAYS COMES ONLY AMONG PLAYERS THAT CAN COVER THE TABLE STAKES OF PRICE QUALITY AND FEATURES OR PRODUCT DEVELOPMENT AND ENTER THE GAME PROMPTNESS AND COURTESY ARE JUST PART OF WHAT KEEPS US COMING BACK TO A BUSINESS WHEN IT COMES TO PRODUCTS WE ALSO WANT RELIABILITY TECHNICAL PARITY WITH THE JONESES AND ECONOMY IN PURCHASE PRICE AND OPERATION IN THE SERVICE SECTOR WE EXPECT KNOWLEDGE A RANGE OF CHOICES AND ADAPTABILITY TO OUR NEEDS IN SELLING TO BUSINESS THE BEST COMPANIES WRAP THEMSELVES TIGHTLY AROUND A CUSTOMER A COMMON EXAMPLE BEING PROCTER & GAMBLE AND ITS RELATIONSHIP WITH WALMART THE SERVICE KICK PROBABLY GOT STARTED IN JAPAN WHOSE PEOPLE REMAIN SOME OF THE WORLD'S MOST DEMANDING IN THIS REGARD TRADE PARTICULARLY WHEN FOLLOWED BY OVERSEAS INVESTMENT IN DISTRIBUTION AND THEN PRODUCTION BY THE JAPANESE HAS SUCCEEDED IN IMPORTING THOSE STANDARDS TO THE US THE RECORD IS SPOTTIER IN EUROPE WHICH HAS BEEN MORE PROTECTIONIST INDEED AMERICANS MAY BE GETTING AHEAD OF THEMSELVES IN THEIR EXPECTATIONS THAT'S THE WARNING FROM A SOURCE SYNONYMOUS WITH CUSTOMER SATISFACTION DAVE POWER OF JD POWER & ASSOCIATES THIS SOUTHERN CALIFORNIA FIRM WAS A PIONEER IN RATING AUTOBUYER ATTITUDES AND HAS EXPANDED TO OTHER GOODS AND SERVICES MR POWER SAYS THAT THANKS TO IMPROVED MEDIA INFORMATION YES WE'VE SHAPED UP OUR PRODUCTS TOO EXPECTATIONS HAVE RISEN FASTER THAN THE ABILITY TO DELIVER AND SOME COMPANIES PROMISE MORE THAN THEY PROVIDE AT LEAST THAT WAS HIS FINDING IN A MAJOR SURVEY FOUR YEARS AGO JD POWER IS DOING ANOTHER THIS YEAR TO SEE DISSATISFACTION LOOK AT THE MAJOR US AIRLINES WHICH HAVE COMPETED LIKE MAD ALTHOUGH ONLY AMONG THEMSELVES DOMESTICALLY BUT WON LITTLE FAVOR WHERE WERE THE FRIENDLY SKIES ANYONE WHO'S WAITED ON A HELP LINE FOR A COMPUTER TECHNICIAN KNOWS THAT SOME PROMISES TO ALWAYS BE THERE ARE HOLLOW YET A NOTE TO A COMPANY OF ANY SORT GENERALLY PAYS OFF AND THANKS TO FAXES AND EMAIL IS EXPEDITIOUS ODDLY PERHAPS JOURNALISTS AND OTHERS IN THE INFORMATION INDUSTRY MAY BE SOME OF THE LEAST CONSCIENTIOUS ABOUT REPLYING PERHAPS WE WERE EXEMPTED FROM THE CUSTOMERSERVICE SEMINARS ALONG WITH THE TOP DOGS COMPANIES CAN MISPLACE THEIR ATTENTION TO THE CUSTOMER A CAR DEALER WHO SPRUCES UP THE WAITING LOUNGE FORGETS THAT HIS CLIENT WOULD RATHER BE SPARED THE STAY AND MR POWER REMEMBERS THE MOST FAMOUS REFUTATION OF THE SIMPLE DOTEON'EM APPROACH THE DEMISE OF THE CORNER GROCER WHO KNEW HIS CUSTOMERS YET WATCHED THEM FLEE TO THE SUPERMARKETS WHERE THEY GOT A BETTER SELECTION CHEAPER PRICES AND FREE PARKING MUCH CONSUMER IRRITATION HAS STEMMED FROM AN INABILITY OF BUSINESS TO BE ABLE TO PROCESS A REQUEST OR PROVIDE INFORMATION QUICKLY AND COMPETENTLY YOU WONDER WHY COMPANIES OFTEN ASSIGN THEIR GREENEST OR LEASTVALUED PERSONNEL AS GATEKEEPERS TO THE PUBLIC THANK GOODNESS FOR WELLDESIGNED VOICE MAIL AS LONG AS SO MUCH OF THE US WORK FORCE IS ILLEQUIPPED BY SKILLS OR MANNERS TO HANDLE ROUTINE INQUIRIES THIS IS GOING TO BE A PROBLEM BUT COMPUTERIZATION IS AN ANSWER THE ONLINE OFFICE CAN GET ANSWERS FAST IN THE END HOWEVER HELPFULNESS IS BEST TRANSMITTED BY A CHEERFUL VOICE OR THE SMOOTHNESS OF A PROCEDURE FOR RESOLVING DIFFICULTIES MY RECENT EXCEPTION JUST UNDERSCORES THE PROGRESS ACROSS AMERICA THE SMOKE FROM CONSUMER IRE HAS TRIGGERED ALL THE RIGHT ALERTS 9403220106 940322 TEXAS BONE MARROW CASE IS SETTLED BY PRUDENTIAL AUSTIN TEXAS THE TEXAS ATTORNEY GENERAL'S OFFICE SAID IT SETTLED A LAWSUIT AGAINST PRUDENTIAL INSURANCE CO OF AMERICA OVER CLAIMS THAT THE INSURER HAD WRONGLY REFUSED TO COVER A BONEMARROW TRANSPLANT TREATMENT FOR PATIENTS WITH ADVANCED BREAST CANCER THE ATTORNEY GENERAL'S OFFICE SAID PRUDENTIAL AGREED TO COVER AUTOLOGOUS BONE MARROW TRANSPLANTS WITH HIGHDOSE CHEMOTHERAPY TO INSURED PATIENTS WHO MEET CERTAIN CRITERIA DESIGNED TO ENSURE THEY CAN TOLERATE THE TREATMENT IN THE LAWSUIT FILED IN A FEDERAL DISTRICT COURT HERE IN SEPTEMBER ATTORNEY GENERAL DAN MORALES ALLEGED THAT PRUDENTIAL AND CERTAIN OF ITS SUBSIDIARIES HAD DENIED PAYMENT FOR THE TREATMENT WRONGLY CLAIMING THAT IT WAS EXPERIMENTAL AND NOT COVERED BY ITS POLICIES PRUDENTIAL OFFICIALS WITH KNOWLEDGE OF THE LAWSUIT WERE NOT IMMEDIATELY AVAILABLE FOR COMMENT ON THE SETTLEMENT THE NEWARK NJBASED INSURER HAD PREVIOUSLY INDICATED THAT WHILE IT HAD NOT DENIED COVERAGE FOR ALL PATIENTS THE PROCEDURE WAS STILL UNDER FEDERAL STUDY AND NOT RECOMMENDED FOR EVERYONE 9403220105 940322 WHO'S NEWS FIRST AMERICAN CORP FIRST AMERICAN CORP WASHINGTON DC CLIFFORD A MILLER AND C AUSTIN FITTS WERE NAMED DIRECTORS OF THIS FORMER BANK HOLDING COMPANY AND ITS FIRST AMERICAN BANKSHARES INC UNIT EXPANDING THE BOARD TO SEVEN MEMBERS IN JUNE 1993 BOTH COMPANIES SOLD THEIR REMAINING OPERATIONS TO FIRST UNION CORP THEY ARE CONTINUING TO LIQUIDATE REMAINING ASSETS MR MILLER IS CHAIRMAN OF THE CLIFFORD GROUP INC A LOS ANGELESBASED BUSINESS CONSULTING FIRM AND A SENIOR CONSULTANT TO SHAMROCK HOLDINGS INC AN INVESTMENT HOLDING COMPANY MS FITTS IS MANAGING DIRECTOR OF THE HAMILTON SECURITIES GROUP INC AN INVESTMENT BANK BASED IN WASHINGTON DC 9403220104 940322 ABREAST OF THE MARKET FRIDAY'S STOCK GAINS ARE ERASED AMID CONCERNS ON INTEREST RATES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE GAINS ADDED TO STOCK PRICES IN FRIDAY'S EXPIRATIONSRELATED RALLY WERE ERASED YESTERDAY PARTLY BECAUSE OF FEARS ABOUT RISING INTEREST RATES THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 3080 OR 079 TO 386485 ERASING FRIDAY'S 3051POINT ADVANCE BROADBASED INDEXES FELL SOMEWHAT LESS THAN THE DOW BUT DECLINING NEW YORK STOCK EXCHANGE ISSUES SWAMPED ADVANCERS ABOUT 1580 TO 627 THE DAY BEGAN WITH A BARRAGE OF INDEXARBITRAGERELATED PROGRAM SELLING THE STEEP RALLY RECORDED LATE FRIDAY HAD CARRIED BIG BOARD STOCK PRICES WELL ABOVE THE LEVEL OF THE COMPARABLE STOCKINDEX FUTURES TRADED IN CHICAGO ARBITRAGE TRADERS WERE GIVEN AN OPPORTUNITY TO TAKE ADVANTAGE OF THAT DISPARITY TO SELL STOCKS AND BUY FUTURES ABOUT 20 POINTS WERE SLICED OFF THE DOW INDUSTRIALS JUST AFTER THE OPENING BELL WORRIES THAT THE FEDERAL RESERVE MIGHT LIFT INTEREST RATES AS SOON AS TODAY DEPRESSED STOCKS AND BONDS ALL DAY THE TREASURY'S 30YEAR SECURITY ENDED WITH A LOSS OF ABOUT 5/8 POINT LIFTING ITS YIELD TO 695 THE CENTRAL BANK'S POLICYSETTING FEDERAL OPEN MARKET COMMITTEE IS SCHEDULED TO MEET TODAY SOME INVESTORS HAVE SPECULATED IT WILL VOTE TO NUDGE THE FEDERALFUNDS RATE UP ANOTHER 025 PERCENTAGE POINT AND LIFT ITS KEY DISCOUNT RATE 05 PERCENTAGE POINT THE FEDERALFUNDS RATE WAS NUDGED HIGHER ON FEB 4 IN THE FIRST TIGHTENING SINCE 1989 THE STANDARD & POOR'S 500 STOCK INDEX DROPPED 252 OR 053 TO 46854 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 144 OR 055 TO 25991 ECONOMICALLY SENSITIVE STOCKS WHICH RALLIED LATE LAST WEEK SLUMPED YESTERDAY CONTRIBUTING TO THE UNDERPERFORMANCE OF THE DOW JONES INDUSTRIAL AVERAGE INTERNATIONAL PAPER SLIPPED 1 5/8 TO 68 5/8 MINNESOTA MINING & MANUFACTURING FELL 1 5/8 TO 101 3/8 AND BOEING LOST 1 TO 46 HERSHEY FOODS LOST 2 TO 47 1/4 AFTER GOLDMAN SACHS & CO ANALYST NOMI GHEZ CUT THE STOCK TO MARKET PERFORMER FROM BUY SHE CITED CONCERNS THAT THE HERSHEY PA COMPANY'S FIRSTQUARTER EARNINGS WILL BE LOWER THAN EXPECTED AUTOTOTE SHED 2 3/8 TO 26 1/4 ON THE NASDAQ STOCK MARKET THE NEWARK DEL MAKER OF HORSETRACK WAGERING EQUIPMENT REPORTED EARNINGS OF SIX CENTS A SHARE FOR THE FIRST QUARTER ENDED JAN 31 THAT WAS ABOVE LAST YEAR'S THREE CENTS BUT BELOW THE EIGHTCENT MEAN ESTIMATE OF ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM NOVELL SLIPPED 1/4 TO 23 3/4 ON NASDAQ BEFORE BEING HALTED FOR NEWS THE PROVO UTAH COMPANY WILL ACQUIRE BOTH PRIVATELY HELD WORDPERFECT CORP AND THE QUATTRO PRO SPEADSHEET BUSINESS OF BORLAND INTERNATIONAL SHARES OF BORLAND SCOTTS VALLEY CALIF WERE UP 1 3/8 TO 14 1/8 ALSO ON NASDAQ BEFORE BEING HALTED TELEFONOS DE CHILE CONTINUED TO SLIDE THE ADR WAS DOWN 3 3/4 TO 89 1/4 AFTER PLUMMETING 12 5/8 ON FRIDAY IT HAS BEEN BATTERED BY WORRIES THE CHILEAN TELEPHONE COMPANY'S BUSINESS WILL BE HURT BY NEW TARIFFS IN THAT COUNTRY OTHER OVERSEAS TELECOMMUNICATIONS ISSUES ALSO WERE WEAK AMONG LATIN AMERICAN ISSUES TELEFONOS DE MEXICO LOST 1 7/8 TO 58 3/4 ON BIG BOARDLEADING VOLUME OF 59 MILLION WHILE TELEFONICA DE ARGENTINA SLUMPED 3 7/8 TO 63 3/4 ELSEWHERE PHILIPPINE LONG DISTANCE DROPPED 3 3/4 TO 61 3/8 ON THE AMEX WHILE TELECOM OF NEW ZEALAND LOST 3 1/4 TO 49 7/8 ON THE BIG BOARD AMERICAN DEPOSITARY RECEIPTS OF ELAN ADDED 1 3/8 TO 37 3/8 ON THE AMEX AFTER OFFICIALS OF THE IRISH PHARMACEUTICALPRODUCTS COMPANY REASSURED ANALYSTS THAT ITS EARNINGS GROWTH AND NEWPRODUCT DEVELOPMENT ARE BOTH ON TRACK THE ADRS HAVE BEEN WEAK RECENTLY OTHER DRUGRELATED STOCKS WERE STRONG ANALYSTS CITED CONTINUED SPECULATION THAT THE CLINTON ADMINISTRATION'S RECENT TROUBLES INCLUDING THE WHITEWATER AFFAIR MEAN ITS TOUGH HEALTHCARE REFORM INITIATIVES MAY FALTER ELI LILLY WAS UP 2 5/8 TO 56 1/8 PFIZER ROSE 1 TO 58 SCHERINGPLOUGH ROSE 7/8 TO 59 1/2 AND BRISTOLMYERS SQUIBB ROSE 5/8 TO 54 1/2 TECHNICAL ANALYSTS NOTED THAT STOCKS OFTEN QUICKLY RETRACE THE GAINS OR LOSSES THEY ACCRUE ON SOCALLED TRIPLEWITCHING DAY SUCH AS FRIDAY WHEN QUARTERLY OPTIONS AND FUTURES EXPIRE BUT THE POSTEXPIRATION REVERSAL WAS ESPECIALLY PRONOUNCED THIS TIME LARGELY BECAUSE OF INVESTORS' INTERESTRATE FEARS THE DOW JONES INDUSTRIAL AVERAGE'S LOSS QUICKLY WIDENED TO AS MUCH AS 37 POINTS THE RISING INTERESTRATE SCENARIO IS FORCING SOME OF THE MOST BULLISH STOCK ANALYSTS TO TEMPER THEIR VIEWS ELAINE GARZARELLI THE INFLUENTIAL STOCK STRATEGIST AT LEHMAN BROTHERS SAID THE RECENT JUMP IN INTEREST RATES HAS PUSHED THE FAIR VALUE ON THE DOW JONES INDUSTRIAL AVERAGE TO 4448 FROM 4616 PREVIOUSLY STILL MS GARZARELLI NOTED THAT WHILE THE IMPACT OF RISING INTEREST RATES CANNOT BE DENIED THE STOCK MARKET REMAINS BELOW FAIR VALUE BASED ON THE CURRENT LEVEL OF INTEREST RATES