TRANS WORLD MUSIC CORP SAID EARNINGS IN ITS FOURTH QUARTER ENDED JAN 29 FELL 2 TO 137 MILLION OR 141 A SHARE COMPARED WITH 14 MILLION OR 144 A SHARE A YEAR EARLIER THE ALBANY NY MUSIC RETAILER WHICH OPERATES 687 STORES NATIONWIDE UNDER SUCH NAMES AS RECORD TOWN TAPE WORLD COCONUTS AND SATURDAY MATINEE SAID REVENUE ROSE 7 TO 1909 MILLION COMPARED WITH 179 MILLION IN THE SAME QUARTER A YEAR EARLIER THE FOURTH QUARTER IS TRADITIONALLY THE MOST IMPORTANT IN THE MUSIC INDUSTRY BECAUSE SO MANY SHOPPERS GIVE RECORDED MUSIC AS GIFT ITEMS IN NASDAQ STOCK MARKET TRADING YESTERDAY SHARES OF TRANS WORLD MUSIC CLOSED AT 1225 DOWN 50 CENTS OR 39 THIS WAS A REBUILDING YEAR FOR US ONE IN WHICH WE ROLLED OUT A NEW SOFTWARE SYSTEM WHICH AFFECTED OUR BUYING REORDERING AND DISTRIBUTION SAID PAUL CARDINAL GENERAL COUNSEL 9403220102 940322 TEAMSTERS PRESIDENT MOVES TO ELIMINATE MANAGEMENT LAYER AMID VOTE ON DUES BY KEVIN G SALWEN AND ROBERT L ROSE STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TEAMSTERS PRESIDENT RON CAREY IN A BOLD ATTEMPT TO PUNISH HIS ENEMIES MOVED TO ELIMINATE AN INFLUENTIAL MANAGEMENT LAYER AT THE UNION THE STEP WHICH WOULD CONSOLIDATE MR CAREY'S POWER AT THE 14 MILLIONMEMBER UNION COMES AMID SIGNS THAT A 25 DUES INCREASE URGED BY THE PRESIDENT IS BEING VOTED DOWN BY THE RANKANDFILE THAT DUES VOTE IS SEEN AS A REFERENDUM ON MR CAREY'S TWOYEAROLD REFORM EFFORT AT THE TEAMSTERS IN A NEWS BRIEFING YESTERDAY MR CAREY REPEATEDLY STRESSED THAT JUST HAVING A MEMBERSHIP VOTE ON THE DUES INCREASE WAS VICTORY ENOUGH IT IS THE FIRST TIME IN TEAMSTERS HISTORY THAT THE MEMBERSHIP HAS VOTED DIRECTLY ON A DUES MATTER TEAMS BEGAN COUNTING THE ROUGHLY 525000 BALLOTS LATE YESTERDAY AND THE UNION WON'T ANNOUNCE RESULTS UNTIL LATER THIS WEEK BUT MR CAREY'S OPPONENTS ALREADY HAVE BEGUN GLOATING THAT THE DUES BOOST WHICH IS DESIGNED TO KEEP THE UNION SOLVENT HAS OVERWHELMINGLY BEEN DEFEATED I THINK IT'S GOING DOWN BIG TIME SAID WILLIAM HOGAN JR CHAIRMAN OF THE CENTRAL CONFERENCE AND A TARGET OF MR CAREY'S POLITICAL MOVE YESTERDAY ADDED GENE GIACUMBO A TEAMSTERS INTERNATIONAL BOARD MEMBER AND NOW A CAREY FOE I DON'T KNOW ANYBODY WHO VOTED FOR THE DUES INCREASE ANYBODY MR CAREY YESTERDAY BEGAN SENDING TEAMS OF HIS ALLIES TO MONITOR THE ACTIVITIES OF THE FOUR CONFERENCES THE REGIONAL BODIES THAT ACT AS A MEETING PLACE FOR TEAMSTERS LOCALS PROVIDING BARGAINING AND ORGANIZING SUPPORT MR CAREY CALLED THEM OUTMODED UNDEMOCRATIC AND WASTEFUL SAYING THEY SIPHON 14 MILLION OF UNION DUES FROM THE MEMBERS REGARDLESS OF THE OUTCOME OF THE DUES VOTE MR CAREY SAID THE MEMBERS HAVE MADE IT CLEAR THAT THERE IS STILL TOO MUCH WASTE DUPLICATION AND BUREAUCRACY IN THE STRUCTURE MR CAREY SAID THE UNION'S GENERAL EXECUTIVE BOARD WILL HOLD A HEARING APRIL 19 TO DETERMINE WHETHER TO KEEP THE AREA CONFERENCES BUT IT SEEMS CLEAR THAT THE BOARD WILL VOTE THEN TO ELIMINATE THE LAYER WALTER SHEA WHO RUNS THE EASTERN CONFERENCE NOTED THAT THE ASSAULT ON THE CONFERENCES CAME JUST THREE WEEKS AFTER THE CONFERENCE CHAIRMEN UNANIMOUSLY URGED THE RANKANDFILE TO VOTE AGAINST THE DUES INCREASE THIS IS TOTALLY RETALIATORY HE SAID DAY ONE OF THE CONFERENCE MONITORING DIDN'T GO PARTICULARLY WELL FOR THE CAREY TEAM AT LEAST IN CHICAGO AT THE CENTRAL CONFERENCE ONCE HEADED BY JIMMY HOFFA SHORTLY AFTER NOON CENTRAL TIME MR CAREY'S FIVEPERSON SQUAD WENT TO THE CONFERENCE'S OFFICES AND ANNOUNCED THAT THEY WERE THERE TO PORE OVER RECORDS UNDER THE AUTHORITY OF THE GENERAL PRESIDENT THEY WERE BLOCKED BY MR HOGAN FROM INTERVIEWING ANYONE ON THE 57EMPLOYEE STAFF OR SEEING PAPERWORK PENDING A POSSIBLE LEGAL CHALLENGE FROM THE CONFERENCE THEN THE TEAM WAS ASKED TO WAIT IN THE LOBBY WHERE THE PHONE SERVICE SUDDENLY STOPPED WORKING AND THE VOLUME OF THE RADIO GREW INCREASINGLY LOUD RON CAREY IS OUT TO DESTROY THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS MR HOGAN SEETHED IN AN INTERVIEW HE WANTS TO DESTROY IT BECAUSE HE CAN'T CONTROL IT FOR HIS PART MR CAREY SAID HE EXPECTED PROBLEMS THROUGHOUT TEAMSTER HISTORY AREA CONFERENCES WERE PART OF A FEUDAL SYSTEM BASED ON LOCAL AND REGIONAL FIEFDOMS WHOSE CHIEFS WOULD GET TOGETHER AND NEGOTIATE OVER WHO WOULD HOLD WHAT CONFERENCE AND INTERNATIONAL UNION POSITION HE SAID NONE OF THESE POSITIONS WAS ELECTED BY THE TEAMSTER MEMBERSHIP WHILE MR CAREY WAS ELECTED BY THE MEMBERSHIP IN THE FIRST RANKANDFILE ELECTION IN TEAMSTERS HISTORY HE WILL LIKELY HAVE TO FIGURE OUT WHAT TO DO WITHOUT THE EXTRA FUNDS FROM THE DUES INCREASE THOSE FUNDS WERE NEEDED TO HELP PAY FOR ENHANCED STRIKE BENEFITS THAT ARE AMONG THE MOST GENEROUS IN ORGANIZED LABOR MR CAREY COULD CALL A CONVENTION OF DELEGATES TO ASK FOR MONEY BUT ISN'T EXPECTED TO DO THAT SINCE DELEGATES ANGRY OVER MR CAREY'S TACTICS WOULD ALSO LIKELY STRIP HIM OF POWER MAKING THE PRESIDENT'S POST A FIGUREHEAD MR CAREY ALSO COULD SLASH SPENDING AT THE INTERNATIONAL LEVEL OR EVEN SELL THE WASHINGTON HEADQUARTERS A SPLASHY BUILDING ANGLED TO FACE THE CAPITOL DOME 9403220101 940322 MINORITY BEATRICE HOLDINGS WON'T BE REGISTERED SOON NEW YORK THERE WON'T SOON BE A LIQUID MARKET FOR SHARES OF TLC BEATRICE INTERNATIONAL HOLDINGS INC AFTER ALL THE INTERNATIONAL FOOD COMPANY WHICH IS CONTROLLED BY THE FAMILY OF THE LATE REGINALD F LEWIS SAID MINORITY SHAREHOLDERS HAVE WITHDRAWN A DEMAND THAT IT REGISTER THEIR SHARES WITH THE SECURITIES AND EXCHANGE COMMISSION SUCH REGISTRATION WOULD HAVE PAVED THE WAY FOR BROAD SECONDARY TRADING IN SHARES OF THE COMPANY WHICH IS THE LEADING DISTRIBUTOR OF DRY GROCERIES BEVERAGES AND HOUSEHOLD PRODUCTS TO SUPERMARKETS IN THE REGION AROUND PARIS AMONG OTHER BUSINESSES FOR THE FIRST NINE MONTHS IT REPORTED NET INCOME OF 105 MILLION OR 114 A SHARE ON SALES OF 127 BILLION TLC BEATRICE HAD FILED A REGISTRATION STATEMENT WITH THE SEC LAST DECEMBER ON BEHALF OF THE MINORITY SHAREHOLDERS BUT THE DOCUMENT NEVER BECAME EFFECTIVE THE SPOKESMAN SAID CURRENTLY ONLY VERY THIN PRIVATE TRADING BETWEEN INSTITUTIONAL HOLDERS OCCURS IN BEATRICE SHARES A COMPANY SPOKESMAN SAID NO MINORITY SHAREHOLDERS COULD BE REACHED FOR COMMENT BEATRICE ALSO SAID IT HAS SOLD ITS CORPORATE AIRCRAFT AND SLASHED ITS HEADQUARTERS STAFF TO ABOUT 15 EMPLOYEES FROM ABOUT 30 AS PART OF A COMPANYWIDE COSTCUTTING PROGRAM 9403220100 940322 BIG BOARD AND NASDAQ REACH A TRUCE OVER SKIRMISHING ADS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATION'S TWO BIGGEST STOCK MARKETS CALLED AN INFORMAL TRUCE IN A FOURYEAR ADVERTISING SKIRMISH THE NEW YORK STOCK EXCHANGE AND THE NASDAQ STOCK MARKET HAVE QUIETLY AGREED TO PONY UP 5 MILLION APIECE TO PUT INTO A COMMON FUND FOR ADS EXTOLLING THE VIRTUES OF STOCKS FOR RETIREMENT PLANNING AMONG OTHER THINGS BROKERAGE EXECUTIVES SAID IN THE PROCESS THE BIG BOARD AND NASDAQ WHICH HAVE FOUGHT FOR YEARS OVER LISTINGS OF CORPORATE AMERICA'S PRIZED COMPANIES ALSO AGREED NOT TO TAKE SUBLIMINAL POTSHOTS AT EACH OTHER IN THEIR OWN CONTINUING AD PITCHES ACCORDING TO THE EXECUTIVES THAT'S MUCH BETTER THAN HAVING IT GO DOWN THE DRAIN IN A SQUABBLE OVER MY SYSTEM IS BETTER THAN YOURS' SAYS JOHN KEEFE OF KEEFE WORLDWIDE INFORMATION SERVICES INC A NEW YORK CONSULTANT THE BIG BOARD AND NASDAQ PUBLICLY DENY EVER TRYING TO BELITTLE EACH OTHER BUT IN RECENT YEARS HIGHTECH NASDAQ WHICH TRADES THROUGH DEALERS AND BILLS ITSELF AS THE STOCK MARKET FOR THE NEXT 100 YEARS HAS PAINTED THE BIG BOARD'S 202YEAROLD AUCTION MARKET AS ANTIQUATED AND MORE SUITED FOR AN 1800SSTYLE TRADING CABAL MEANWHILE THE BIG BOARD HAS POLITELY SUGGESTED IN ADS THAT ITS AUCTION MARKET OFFERS BETTER PRICES AND A FAIRER DEAL TO SMALL INVESTORS THAN WHO ELSE NASDAQ'S DEALER MARKET THE BIG BOARD'S ADS AT TIMES ALSO HAVE FEATURED SUCH NASDAQ DEFECTORS AS WARREN BUFFETT THE LEGENDARY INVESTOR AND CHIEF OF BERKSHIRE HATHAWAY INC THE TURF TIFF WAS AMONG YESTERDAY'S TOPICS AT A CONFERENCE OF WALL STREET LEGAL AND COMPLIANCE EXECUTIVES THE CONFERENCE'S KEYNOTE SPEAKER JOSEPH GRANO JR THE NEW CHAIRMAN OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHICH RUNS NASDAQ IS SEEKING COMMITMENTS FROM THE BIG BOARD NASDAQ AND THE MUCHSMALLER AMERICAN STOCK EXCHANGE FOR THE JOINT ADVERTISING EFFORT MR GRANO SAYS HE IS ATTEMPTING TO RAISE A TOTAL OF 20 MILLION FROM THE NATION'S EXCHANGES INCLUDING 5 FROM EACH BROKER AT THE MAJOR BROKERAGE FIRMS TO FUND THE NEW ADVERTISING STRATEGY HE REFUSES TO DISCUSS SPECIFIC COMMITMENTS THOUGH THE BIG BOARD AND NASDAQ HAVE AGREED TO SUPPORT THE EFFORT HE SAYS THE BIG BOARD AND NASDAQ DECLINED TO COMMENT ON ANY MONETARY COMMITMENT THIS ISN'T A CALL FOR AN END TO ADVERTISING BUT TO GET AWAY FROM THE SUBTLE ATTACKS BY THE EXCHANGES SAYS MR GRANO ALSO THE BROKERAGE CHIEF AT PAINEWEBBER GROUP INC HE SAYS INVESTORS GET CONFUSED WHEN THE MARKETS PUBLICLY PICK ON EACH OTHER THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP SAYS IT HAS EXHORTED THE TWO EXCHANGES TO LAY OFF EACH OTHER FOR SEVERAL MONTHS ALL THIS BACKANDFORTH NATTERING MERELY DECREASES PUBLIC CONFIDENCE IN THE MARKET SAYS MARC LACKRITZ THE TRADE GROUP'S PRESIDENT WE'VE URGED BOTH MARKETS TO AT LEAST REDIRECT SOME OF THEIR ADVERTISING RESOURCES TO A POSITIVE TYPE OF JOINT CAMPAIGN THE STOCK MARKETS HAVE LONG USED ADS TO PROMOTE BUSINESS OF COURSE BUT THE UPSTART NASDAQ REALLY GOT UNDER THE BIG BOARD'S SKIN A FEW YEARS BACK AS THE NEW YORK EXCHANGE WAS PREPARING TO LAUNCH ITS 200YEAR BIRTHDAY BASH ONE OF NASDAQ'S MOST MEMORABLE TV ADS WAS A SLOWMOTION SCENE OF A TRADING FLOOR IN WHICH FRANTIC BROKERS WILDLY WAVED THEIR ARMS AND BARKED ORDERS WITH A BACKDROP OF MEDIEVAL CHANTING THE NARRATION IS THERE A RATIONAL ALTERNATIVE TO THE TRADITIONAL TRADING FLOOR YES NOT HAVING ONE FADE IN TO THE NASDAQ LOGO THE STOCK MARKET FOR THE NEXT 100 YEARS IN A RECENT PRINT AD THAT APPEARED IN THIS NEWSPAPER NASDAQ POINTEDLY NOTED THAT TWO OF ITS MAJOR MARKET MAKERS ARE MERRILL LYNCH & CO AND AMERICAN EXPRESS CO'S LEHMAN BROTHERS INC UNIT HOWEVER THE BIG BOARD LISTS THE SHARES OF MERRILL AND AMERICAN EXPRESS JOSEPH HARDIMAN NASDAQ'S CHIEF DECLINED TO COMMENT ON ANY ASPECT OF THE EXCHANGE'S AD STRATEGY NASDAQ'S ADS DON'T ATTACK OTHER MARKETS A SPOKESMAN SAYS THE MESSAGE OF OUR AD CAMPAIGN IS THAT NASDAQ HAS ARRIVED THE NEGATIVE STUFF THE SPOKESMAN ADDS WAS PROBABLY OUR FIRST GENERATION OF ADS THE BIG BOARD HASN'T BEEN AS DIRECT AS THE MORE AGGRESSIVE NASDAQ LATE LAST YEAR THE BIG BOARD RAN PRINT ADS IN WHICH IT BOASTED THAT ITS AUCTION MARKET IS DESIGNED TO ENSURE THE BEST POSSIBLE PRICE ON TRANSACTIONS THE BIG BOARD PITCH CAME ON THE HEELS OF A FORBES MAGAZINE STORY SAYING THAT SMALL INVESTORS ARE BETTER OFF TRADING THROUGH AN AUCTION MARKET THAN THROUGH A DEALER MARKET BECAUSE OF NASDAQ'S WIDER SPREADS OR THE DIFFERENCE BETWEEN BID AND ASKED PRICES THE BIG BOARD FOR ITS PART SAYS IT HAS TAKEN THE HIGH ROAD ON THE AD FRONT WE HAVE ABSOLUTELY NO COMMENT ON THE NASDAQ'S ADVERTISING SAYS ROBERT BRITZ A BIG BOARD SENIOR VICE PRESIDENT AND HEAD OF ITS ADVERTISING AND MARKETING DEPARTMENTS MR BRITZ SAYS THE BIG BOARD CURRENTLY HAS A PHILOSOPHY OF NOT PUTTING DOWN THE COMPETITION EITHER YOU HAVE A PRODUCT TO SELL OR YOU DON'T HE SAYS NEGATIVE ADVERTISING IN THE END IS NOT GOING TO WIN WHAT ABOUT THE PERCEPTION THAT SOME BIG BOARD ADS TAKE SHOTS AT NASDAQ'S DEALER MARKET IF WE CHOOSE TO HIGHLIGHT THE MERITS OF THE WAY WE DO BUSINESS AND SOMEONE ELSE CHOOSES NOT TO DO BUSINESS THAT WAY ARE WE TAKING A SHOT AT THEM ASKS MR BRITZ I DON'T THINK SO IF SO HE ADDS IT'S UNINTENDED DON'T LOOK FOR THE AD TRUCE TO END THE CARPING BETWEEN THE TWO MARKETS UNLIKE NASDAQ WE THREW VERY LITTLE MONEY AT ADVERTISING LAST YEAR SAYS MR BRITZ THE BIG BOARD ADVERTISING CHIEF BOTH EXCHANGES REFUSE TO FESS UP HOW MUCH THEY SPENT SO THIS NEWSPAPER CALLED ON COMPETITIVE MEDIA REPORTING A NEW YORK ADINFORMATION COMPANY NO CONTEST HERE SAYS JEFFREY SOMERSTEIN AN ACCOUNT MANAGER HIS FINAL TALLY ON 1993 AD SPENDING 28 MILLION FOR THE BIG BOARD AND 143 MILLION FOR NASDAQ 9403220099 940322 TECHNOLOGY FDA PANEL SUPPORTS LASER SYSTEMS MADE BY SUMMIT AND VISX WALTHAM MASS A FOOD AND DRUG ADMINISTRATION PANEL RECOMMENDED APPROVAL OF THE USE OF EXCIMER LASER SYSTEMS MADE BY SUMMIT TECHNOLOGY INC AND VISX INC TO TREAT DISEASED CORNEAS PROVIDED THE COMPANIES SUBMIT ADDITIONAL DATA ON PATIENTS ONE YEAR AFTER TREATMENT BUT STOCK OF VISX TUMBLED 475 OR 181 TO CLOSE AT 2150 AND STOCK OF SUMMIT FELL 4 OR 117 TO CLOSE AT 3025 BOTH IN NASDAQ STOCK MARKET TRADING DATA ON THE SYSTEMS USED TO REMOVE CORNEAL SCARS DYSTROPHIES AND RECURRENT EROSIONS WILL BE ANALYZED FOR SAFETY AND STABILITY OF TREATMENT BEFORE THE FDA ISSUES A FINAL DECISION COMPANY OFFICIALS SAID THE FDA HAS YET TO CONSIDER SUMMIT'S APPLICATION TO USE THE SAME EQUIPMENT TO TREAT NEARSIGHTEDNESS AND VISX'S APPLICATION TO USE IT TO TREAT NEARSIGHTEDNESS FARSIGHTEDNESS AND ASTIGMATISM SUMMIT TECHNOLOGY BASED IN WALTHAM SAID THE PANEL'S RECOMMENDATION WAS A MAJOR STEP FORWARD IN OUR REGULATORY MARCH THE EXCIMER LASER IS SUMMIT'S PRINCIPAL PRODUCT WHICH HAS BEEN IN DEVELOPMENT SINCE 1986 VISX IN SANTA CLARA CALIF SAID FDA APPROVAL OF THE PROCESS WOULD ENABLE IT TO SELL ITS FIRST PRODUCT IN THE US THE NEWS IS A MAJOR STEP FORWARD AND IT ESTABLISHES A NEW MARKET FOR THE COMPANY SAID JIM WILLIAMS CHIEF FINANCIAL OFFICER PETER LITMAN SUMMIT'S GENERAL COUNSEL SAID THE SYSTEM COULD MAKE UNNECESSARY SOME OF THE 40000 CORNEAL TRANSPLANTS DONE ANNUALLY IN THE US THE EXCIMER LASER SCULPTS THE CORNEA AND REMOVES DISEASED TISSUE THE SUMMIT SYSTEMS SELL FOR 400000 TO 450000 APIECE SUMMIT SAID IT WILL SUBMIT THE REQUESTED DATA TO THE FDA WITHIN A MONTH VISX'S CHIEF FINANCIAL OFFICER JIM WILLIAMS COULD NOT SAY WHY HIS COMPANY'S STOCK TUMBLED THERE'S NOTHING FROM THE COMPANY'S PERSPECTIVE THAT WOULD HAVE GIVEN THE FEELING OF ANYTHING BUT CONFIDENCE HE SAID HE SPECULATED THAT INVESTORS WERE REACTING TO WIRE REPORTS THAT RAN BEFORE THE PANEL VOTED SAYING THAT THE TONE OF THE PANEL'S MEETING WAS NEGATIVE 9403220098 940322 LEISURE & ARTS TOP 10 SINGLES / ALBUMS CONSTRUCTED BY BILLBOARD MAGAZINE FROM DATA PROVIDED BY BROADCAST DATA SYSTEMS AND SOUNDSCAN INC AND BASED ON A NATIONAL SAMPLE OF RETAIL REPORTS AND RADIO PLAY LISTS 9403220097 940322 WHO'S NEWS WILMINGTON TRUST CORP WILMINGTON TRUST CORP WILMINGTON DEL HOWARD E COSGROVE 50 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MULTIBANK HOLDING COMPANY BRINGING THE BOARD TO 21 MEMBERS MR COSGROVE IS PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF DELMARVA POWER & LIGHT CO 9403220096 940322 SHORT INTEREST ON BIG BOARD HITS NEW HIGH RJR DISNEY AND CHRYSLER REGISTER HIGHEST LEVELS FOR MONTH TO MARCH 15 BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST CONTINUED ITS RECORDBREAKING ASCENT ON THE NEW YORK STOCK EXCHANGE RISING 35 TO 137 BILLION SHARES IN MIDMARCH BIG BOARD SHORT INTEREST TOTALED 1369775470 SHARES UP FROM 1323065502 SHARES A MONTH EARLIER SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE ROSE 37 TO A RECORD 108768190 SHARES FROM THE 104865316 ADJUSTED SHARES REPORTED IN MIDFEBRUARY THE SURGING LEVELS OF SHORT INTEREST ON THE BIG BOARD IN RECENT MONTHS PARTLY REFLECT INCREASED OPPORTUNITIES FOR ARBITRAGE BECAUSE OF THE GROWING NUMBER OF CORPORATE TAKEOVERS SOME ANALYSTS SAY RJR NABISCO HOLDINGS CORP WALT DISNEY CO AND CHRYSLER CORP LED THE GROUP OF COMPANIES WITH THE HIGHEST LEVELS OF SHORT INTEREST HANSON PLC'S SHORT POSITION SURGED TO 19 MILLION SHARES FROM 76 MILLION TRADERS WHO SELL SECURITIES SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS HARRY STRUNK AN INVESTMENT CONSULTANT IN PALM BEACH FLA SAID SHORT SELLERS HAD A DIFFICULT TIME IN JANUARY WHEN THE STOCK MARKET SOARED TO NEW HIGHS RISING STOCK PRICES MAKE IT MORE EXPENSIVE TO BUY BACK SHARES IN THE MARKET HOWEVER THE DECISION BY THE FEDERAL RESERVE BOARD TO RAISE THE FEDERAL FUNDS RATE SLIGHTLY IN EARLY FEBRUARY WAS BENEFICIAL TO SHORT SELLERS HE SAID A HIGHER INTEREST RATE PROMPTS MONEY TO MIGRATE FROM THE STOCK MARKET TO OTHER SECURITIES SUCH AS TREASURY BILLS AND BONDS AS A RESULT SOME STOCK PRICES FALL WHICH MAKES IT EASIER FOR SHORT SELLERS TO BUY BACK SHARES AND COVER THEIR POSITIONS THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO ROSE TO 452 FROM 424 THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY BIG BOARD VOLUME WAS 3025 MILLION SHARES BIG BOARD AND AMEX SHORT INTEREST POSITIONS WERE CALCULATED FOR THE MONTH INCLUDING THE 20 TRADING DAYS THROUGH MARCH 8 WITH MARCH 15 AS THE SETTLEMENT DATE THE FOLLOWING TABLES SHOW THE BIG BOARD AND AMEX ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 250000 SHARES EXISTED AT MIDMARCH OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDFEBRUARY SEE ACCOMPANYING TABLES WSJ MARCH 22 1994 9403220095 940322 MONDAY'S MARKETS MARKETS FALL ON PROSPECT OF RATE RISE INDUSTRIALS DROP 3080 WHILE BONDS SLUMP AHEAD OF FED MEETING BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK AND BOND PRICES SANK AMID CONCERNS ABOUT AN IMPENDING INTERESTRATE INCREASE BY THE FEDERAL RESERVE THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SLID 3080 POINTS TO 386485 STANDARD & POOR'S 500STOCK INDEX FELL 252 TO 46854 AND THE NASDAQ COMPOSITE INDEX LOST 663 TO 79730 THE INDUSTRIAL AVERAGE FELL 30 POINTS IN THE FIRST 90 MINUTES GIVING BACK VIRTUALLY ALL OF FRIDAY'S GAINS INVESTORS' CHIEF FOCUS WAS TODAY'S MEETING OF THE FEDERAL OPEN MARKET COMMITTEE THE POLICYMAKING ARM OF THE FEDERAL RESERVE JOHN SHAUGHNESSY DIRECTOR OF RESEARCH AT ADVEST INC IN HARTFORD CONN SAID INVESTORS WERE WORRIED THAT FED CHAIRMAN ALAN GREENSPAN MAY BOOST RATES BY MORE THAN EXPECTED JUST TO ASSERT THE FED'S INDEPENDENCE FOLLOWING MR GREENSPAN'S SUMMONS TO THE WHITE HOUSE FRIDAY BECAUSE QUESTIONS WERE RAISED ABOUT WHETHER HE IS IN THE PRESIDENT'S POCKET HE MAY HAVE TO BE MORE DRACONIAN TO MAINTAIN HIS CREDIBILITY AS AN INFLATION FIGHTER SAID MR SHAUGHNESSY HE SAID IF THE FEDERALFUNDS RATE IS LIFTED MORE THAN A HALF POINT STOCKS AND BONDS COULD SUFFER BUT A SMALLER INCREASE MAY SPARK RALLIES AS THE UNCERTAINTY ABOUT THE RATE MOVE WOULD BE LIFTED THE FEDERALFUNDS RATE IS THE INTEREST RATE ON OVERNIGHT LOANS BETWEEN BANKS TO MEET FED REQUIREMENTS BOND TRADERS WERE JITTERY ABOUT A POSSIBLE RATE BOOST PARTLY BECAUSE IT WOULD IMPLY THAT THE ECONOMY IS STRONG AND INFLATION A POSSIBILITY ANALYSTS SAID MICKEY D LEVY CHIEF FINANCIAL ECONOMIST AT NATIONSBANK SAID THE FED NEEDS TO RAISE RATES SOON IN RECOGNITION OF THE ECONOMY'S STRENGTH DELAYING IT GIVES ONLY THE WRONG SIGNAL AND PUTS OFF THE INEVITABLE HE SAID WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 065 TO 11520 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2474 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1580 ISSUES FELL AND 627 ROSE BOND PRICES SLUMPED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST NEARLY 5/8 POINT OR ALMOST 625 FOR EACH 1000 FACE AMOUNT TO YIELD 695 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16885 MARKS AND 10600 YEN COMPARED WITH 16965 MARKS AND 10610 YEN FRIDAY 9403220094 940322 US BUDGET DEFICIT NARROWED IN FEBRUARY TO 4163 BILLION WASHINGTON THE FEDERAL GOVERNMENT'S BUDGET DEFICIT NARROWED TO 4163 BILLION IN FEBRUARY COMPARED WITH 4819 BILLION A YEAR EARLIER THE TREASURY DEPARTMENT SAID LAST MONTH'S DEFICIT COMPARED WITH A SURPLUS OF 1561 BILLION IN JANUARY FOR THE FIRST FIVE MONTHS OF THE GOVERNMENT'S FISCAL YEAR WHICH BEGAN OCT 1 THE DEFICIT TOTALED 11808 BILLION COMPARED WITH 13884 BILLION A YEAR EARLIER THE TREASURY SAID RECEIPTS TOTALED 7294 BILLION LAST MONTH COMPARED WITH 6597 BILLION A YEAR EARLIER AND 12296 BILLION IN THE PREVIOUS MONTH OUTLAYS TOTALED 11457 BILLION LAST MONTH COMPARED WITH 11417 BILLION A YEAR EARLIER AND 10735 BILLION IN JANUARY THE GOVERNMENT PAID 1621 BILLION IN INTEREST IN FEBRUARY ON THE FEDERAL DEBT RECEIPTS FOR THE RESOLUTION TRUST CORP TOTALED 678 MILLION IN FEBRUARY THROUGH ASSET SALES HERE IS A SUMMARY OF THE TREASURY'S REPORT IN BILLIONS OF DOLLARS THROUGH THE END OF FEB 28 1994 9403220093 940322 RESTRAINT OF TRADE CACOPHONY OF VOICES DROWNS OUT MESSAGE FROM US TO CHINA BEIJING IS ABLE TO EXPLOIT WASHINGTON INFIGHTING OVER MFN TRADE STATUS BUSINESS VS HUMAN RIGHTS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL SECRETARY OF STATE WARREN CHRISTOPHER HAD BARELY BEGUN HIS HUMANRIGHTS LECTURE TO CHINESE PREMIER LI PENG DURING HIS RECENT TRIP WHEN THE CHINESE LEADER INTERRUPTED HE HAD HELD MANY POSITIVE MEETINGS WITH TOP EXECUTIVES OF US COMPANIES RECENTLY HE NOTED INCLUDING GENERAL ELECTRIC AT&T IBM AND GOLD SACKS AN APPARENT REFERENCE TO THE WALL STREET INVESTMENT HOUSE THE MESSAGE WAS CLEAR ENOUGH BEIJING ISN'T TAKING MR CHRISTOPHER'S LECTURES VERY SERIOUSLY A CACOPHONY OF CONFLICTING SIGNALS FROM THE US HAS LED CHINESE LEADERS TO CONCLUDE THAT THE CLINTON TEAM WON'T FOLLOW THROUGH ON ITS THREAT TO TOTALLY REVOKE CHINA'S TRADING RIGHTS AND THEY MAY BE RIGHT WITHOUT STRONG LEADERSHIP FROM THE TOP EVEN THE US GOVERNMENT ISN'T SPEAKING IN UNISON EARLIER THIS MONTH JOHN SHATTUCK ASSISTANT SECRETARY OF STATE FOR HUMAN RIGHTS WENT TO CHINA TO WARN THAT THE US WOULD REVOKE CHINA'S FAVORED TRADING STATUS BY JUNE UNLESS BEIJING SIGNIFICANTLY IMPROVES ITS HUMANRIGHTS PERFORMANCE WITHOUT CHECKING IN ADVANCE WITH MR CHRISTOPHER MR SHATTUCK ALSO MET IN SECRET WITH A LEADING CHINESE DISSIDENT A MOVE THAT INCENSED CHINESE LEADERS AFTER NEWS OF THE SESSION SURFACED IN BEIJING BUT AT THE SAME TIME AS MR SHATTUCK WAS THREATENING TO CUT OFF TRADE RELATIONS A TOP COMMERCE DEPARTMENT OFFICIAL JEFFREY GARTEN WAS IN THE CHINESE CAPITAL TRYING TO STRENGTHEN THOSE TIES HE WAS DISCUSSING ARRANGEMENTS FOR A TRADE MEETING THAT WILL BRING MORE THAN 100 CHINESE OFFICIALS TO WASHINGTON NEXT MONTH HIS VISIT WAS PAVING THE WAY AS WELL FOR A PLANNED TRIP BY COMMERCE SECRETARY RON BROWN AND TWO DOZEN US CORPORATE CHIEFTAINS TO BEIJING IN AUGUST TWO MONTHS AFTER THE DEADLINE FOR CHINA TO SHOW PROGRESS ON HUMAN RIGHTS THE PRESIDENT'S NATIONAL ECONOMIC COUNCIL AND HIS NATIONAL SECURITY COUNCIL PLAN A JOINT MEETING TODAY IN AN EFFORT TO FIND A WAY OUT OF A HOLE THEY HAVE DUG FOR THEMSELVES MEANWHILE CHINA'S LEADERS CONTINUE TO DEFY US DEMANDS THAT THEY MAKE IMPROVEMENTS ON HUMANRIGHTS ISSUES IN EXCHANGE FOR TRADE PRIVILEGES JUST YESTERDAY CHINA'S FOREIGN MINISTER PUBLICALLY LASHED OUT AT US POLICY DECLARING THAT CHINA COULD LIVE WITHOUT THE AMERICAN MARKET ONE US OFFICIAL PREDICTS THAT TODAY'S SESSION WILL BE A TENSE ONE IN THE WAKE OF MR CHRISTOPHER'S STORMY TRIP TO BEIJING SENIOR OFFICIALS CONCEDE THE ODDS HAVE DROPPED THAT CHINA WILL MAKE SIGNIFICANT PROGRESS ON HUMAN RIGHTS OVER THE NEXT TWO MONTHS IF THEY DON'T AND PRESIDENT CLINTON AGREES TO CONTINUE CHINA'S MOST FAVORED NATION TRADING STATUS HE WILL BE ACCUSED OF BREAKING HIS WORD KOWTOWING TO THE CHINESE COMMUNISTS AND DEMONSTRATING ONCE AGAIN THAT IN THE NEW WORLD THE US LACKS THE COURAGE OF ITS CONVICTIONS BUT IF MR CLINTON FAILS TO EXTEND TRADING PRIVILEGES HE WILL BE CUTTING OFF WHAT HIS COMMERCE DEPARTMENT CALLS THE WORLD'S MOST PROMISING MARKET FOR US GOODS OVER THE NEXT TWO DECADES AND TARNISHING HIS OWN PROMISE TO MAKE ECONOMICS A GUIDING PRINCIPLE OF US FOREIGN POLICY THESE VAST ECONOMIC STAKES HAVE TRIGGERED THE BICKERING AMONG OFFICIALS OVER CHINA POLICY ECONOMIC AIDES IN THE WHITE HOUSE AND AT THE COMMERCE AND TREASURY DEPARTMENTS COMPLAIN BITTERLY ABOUT THEIR COLLEAGUES AT THE STATE DEPARTMENT INCLUDING MR SHATTUCK AND ASSISTANT SECRETARY FOR EAST ASIAN AND PACIFIC AFFAIRS WINSTON LORD ONE WHITE HOUSE OFFICIAL JOKED LAST WEEK THAT WHILE MANY AMERICANS GO TO CHINA TO BUY SHIRTS MR CHRISTOPHER WENT THERE AND LOST HIS STATE DEPARTMENT OFFICIALS COUNTER THAT ECONOMIC OFFICIALS ARE RESPONSIBLE FOR UNDERCUTTING THE PRESIDENT'S THREAT SENIOR US OFFICIALS STILL WERE EMITTING MIXED SIGNALS AS RECENTLY AS LAST WEEKEND ON HIS WAY TO A MEETING OF ASIAN FINANCE MINISTERS IN HONOLULU ON FRIDAY TREASURY SECRETARY LLOYD BENTSEN ADOPTED MR CHRISTOPHER'S TOUGH LINE SAYING IF THE DECISION WERE MADE TODAY I ASSUME THAT CHINA WOULD LOSE THAT MOST FAVORED NATION PRIVILEGE BUT AFTER ARRIVING IN HONOLULU MR BENTSEN STARTED TALKING COMPROMISE TELLING REPORTERS THE US NEEDED TO AVOID DISENGAGING FROM CHINA I THINK WE HAVE TO EXPLORE ALTERNATIVES TO SEE IF WE CAN WORK THIS OUT HE SAID THE NEXT DAY MR BENTSEN TRIED TO UNDO THE DAMAGE SAYING CHINA HAD TO DO MORE BUT HE ALSO SAID CHINA HAS MADE PROGRESS IN THE LAST FEW MONTHS EVEN THE CHINESE WERE CONFUSED AN AIDE TO CHINESE FINANCE MINISTER LIU ZHONGLI WHO HAD HEARD MR BENTSEN'S COMMENTS SCURRIED AFTER REPORTERS TO DOUBLECHECK THE MESSAGE DID HE SAY CHINA HAS MADE PROGRESS IN RECENT MONTHS TOLD BY REPORTERS HE HAD HEARD THE SECRETARY CORRECTLY THE CHINESE OFFICIAL REPLIED THIS IS A POSITIVE MESSAGE WHILE MR CHRISTOPHER HAS BEEN HEAPED WITH BLAME OVER THE PAST WEEK THE ADMINISTRATION'S NOWIN CHINA POLICY REALLY HAS ITS ROOTS IN THE PRESIDENTIAL CAMPAIGN OF 1992 CANDIDATE CLINTON TAKING HIS CUES FROM CONGRESSIONAL DEMOCRATS REPEATEDLY PUMMELED PRESIDENT BUSH ON A FOREIGNPOLICY FRONT WHERE MR BUSH SEEMED VULNERABLE HIS CODDLING OF AGING CHINESE RULERS WHO SENT TANKS INTO TIANANMEN SQUARE IN 1989 AND MOWED DOWN PRODEMOCRACY STUDENTS MR BUSH ANGERED CONGRESSIONAL DEMOCRATS BY THWARTING THEIR EFFORTS TO PASS PUNITIVE MEASURES AGAINST CHINA LAST SPRING THE CLINTON ADMINISTRATION FINESSED THE MOST FAVORED NATION ISSUE BY EXTENDING THE TRADING PRIVILEGES FOR ANOTHER YEAR BUT IN DOING SO THE PRESIDENT ISSUED AN EXECUTIVE ORDER SETTING CONDITIONS THAT CHINA COULD REALISTICALLY MEET AND THAT WERE LESS STRINGENT THAN ONES CONGRESS WAS VOWING TO PASS THE ORDER WAS HAMMERED OUT BY MR LORD AND SAMUEL BERGER THE DEPUTY NATIONAL SECURITY ADVISER THE TWO OFFICIALS CONSULTED CLOSELY WITH TWO CONGRESSIONAL DEMOCRATS REP NANCY PELOSI OF CALIFORNIA AND SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE WHO WERE SPEARHEADING THE EFFORTS FOR TOUGH SANCTIONS AT THE WHITE HOUSE SIGNING CEREMONY EVERYONE FROM THE HEAD OF THE USCHINA BUSINESS COUNCIL TO REPRESENTATIVES OF AGRICULTURAL EXPORTERS TO MEMBERS OF CONGRESS WERE THERE AND THERE WAS OVERWHELMING SUPPORT RECALLS MR LORD THAT IS EXCEPT AMONG MR CLINTON'S ECONOMIC TEAM THEY FELT THE EXECUTIVE ORDER OVEREMPHASIZED HUMAN RIGHTS AT THE EXPENSE OF ECONOMIC OPPORTUNITY BY LAST SUMMER IT WAS BECOMING CLEAR THE POLICY WAS IN TROUBLE CHINA WAS DOING LITTLE TO RELEASE POLITICAL PRISONERS OR ENSURE THAT PRODUCTS SHIPPED TO THE US WEREN'T BEING MADE WITH PRISON LABOR STEPS THEY NEEDED TO TAKE UNDER THE EXECUTIVE ORDER MOREOVER CHINA'S LEADERS WERE IN A DEFIANT MOOD INFLATION PROBLEMS WERE PROMPTING THEM TO CLAMP DOWN ON ANY SIGNS OF DISCONTENT AND WITH THE PROSPECT OF A SUCCESSION BATTLE LOOMING WHEN CHINA'S AGING LEADER DENG XIAOPING PASSES FROM THE SCENE SENIOR OFFICIALS WERE ANXIOUS TO STAND UP TO THE US IN THE MEANTIME PRESIDENT CLINTON WAS GETTING AN EARFUL BOTH FROM US BUSINESS EXECUTIVES AND FROM OVERSEAS TRADING PARTNERS THEY WERE NERVOUS THAT A RUPTURE IN USCHINA RELATIONS COULD JEOPARDIZE THEIR BUDDING BUSINESS PROFITS AND DERAIL THE ASIAN REGION'S PROSPERITY ON THE WAY BACK FROM THE GROUP OF SEVEN TOKYO SUMMIT IN JULY MR CLINTON BEGAN GRUMBLING ABOUT THE WAY THE CHINA POLICY WAS WORKING OR NOT WORKING PRESAGING A SWITCH IN US STRATEGY DEVELOPED BETWEEN MIDJULY AND LABOR DAY THE NEW POLICY WAS DUBBED COMPREHENSIVE ENGAGEMENT THE IDEA WAS TO BROADEN TIES WITH CHINA IN TRADE BUSINESS AND MILITARY AFFAIRS AS WELL AS HUMAN RIGHTS US OFFICIALS BELIEVED THIS APPROACH WOULD REASSURE CHINA THAT WASHINGTON VALUED THE COUNTRIES' OVERALL RELATIONSHIP THEY ALSO HOPED THAT GROWING COOPERATION IN OTHER FIELDS WOULD ENABLE BEIJING TO IMPROVE ITS HUMANRIGHTS RECORD WITHOUT LOOKING AS IF IT WAS KNUCKLING UNDER TO THE US US ECONOMIC OFFICIALS CONTINUED TO BE UNEASY ABOUT THE THRUST OF THE POLICY HOWEVER AT THE COMMERCE DEPARTMENT MR GARTEN MARCHED INTO THE FRAY WITH A THICK CLASSIFIED ECONOMIC ANALYSIS TITLED US COMMERCIAL INTERESTS IN CHINA TO THE YEAR 2000 IN IT HE CALLED FOR MORE SPECIFIC ECONOMIC ANALYSIS TO BE INCORPORATED INTO CHINA POLICY MAKING FOLLOWING A TOPLEVEL MEETING IN EARLY OCTOBER DEPUTY US TRADE REPRESENTATIVE CHARLENE BARSHEFSKY THE COMMERCE DEPARTMENT'S MR GARTEN AND TREASURY UNDERSECRETARY LAWRENCE SUMMERS STAYED BEHIND TO COMPLAIN THAT MR LORD STILL WAS PLACING EXCESSIVE EMPHASIS ON HUMAN RIGHTS AND SECURITY ISSUES AT THE EXPENSE OF TRADE AND ECONOMICS THEY TOLD BOWMAN CUTTER DEPUTY DIRECTOR OF THE NATIONAL ECONOMIC COUNCIL THAT THE POLICY WAS STILL UNBALANCED MR CUTTER TOOK THE COMPLAINT TO MR BERGER THE DEPUTY NATIONAL SECURITY ADVISER AND FURTHER ADJUSTMENTS IN THE POLICY PROCESS WERE MADE TO GIVE THE ECONOMIC OFFICIALS A GREATER VOICE YET THE PUBLIC CONTRADICTIONS CONTINUED MR CLINTON TRIED TO JUGGLE THE COMPETING INTERESTS AT A NOVEMBER GATHERING OF THE ASIA PACIFIC ECONOMIC COOPERATION ORGANIZATION IN SEATTLE DURING A PARLEY WITH TOP US OFFICIALS IN HIS HOTEL SUITE BEFORE MR CLINTON MET WITH CHINA'S PRESIDENT THE FOCUS WAS HEAVILY ON COMMERCIAL INTERESTS RECALLS ONE PARTICIPANT BUT AFTER MR CLINTON MET WITH THE CHINESE LEADER THE US PRESIDENT SAID HE HAD EMPHASIZED THE NEED FOR EARLY CONCRETE PROGRESS ON HUMANRIGHTS ISSUES THE NEW POLICY CONTINUED TO SEND MIXED SIGNALS TO CHINA ALONG DIPLOMATIC CHANNELS AS WELL MR CHRISTOPHER WHO HAD ALREADY MET FOUR TIMES WITH HIS CHINESE COUNTERPART PLANNED HIS RECENT TRIP TO BEIJING TO UNDERSCORE US DETERMINATION ON HUMAN RIGHTS NOT ONLY WAS THE JUNE DEADLINE APPROACHING BUT CHINA'S ANNUAL MEETING OF THE PEOPLE'S CONGRESS WAS LEADING TO THE CUSTOMARY ROUNDUP OR HARASSMENT OF DISSIDENTS CHINESE OFFICIALS' FURY OVER MR SHATTUCK'S MEETING WITH CHINESE DISSIDENT WEI JINGSHENG ADDED FURTHER FUEL TO THEIR ANTIDISSIDENT CAMPAIGN AS MR CHRISTOPHER MADE HIS WAY TO BEIJING TRAVELING FIRST TO AUSTRALIA AND JAPAN PROSPECTS FOR THE TRIP CONTINUED TO DIM SITTING IN HIS SUITE AT THE OKURA HOTEL IN TOKYO MR CHRISTOPHER PRODDED BY SOME POLITICAL ADVISERS WHO SAW A POTENTIAL DISASTER IN THE MAKING ASKED MR LORD WHETHER THE TRIP SHOULD BE POSTPONED MR LORD A FORMER AMBASSADOR TO CHINA ARGUED THAT CANCELING IT WOULD DEPRIVE MR CHRISTOPHER OF THE CHANCE TO CARRY THE US MESSAGE DIRECTLY TO THE CHINESE LEADERS AND MIGHT CAUSE A RUPTURE IN RELATIONS THAT COULDN'T BE HEALED BY THE JUNE DEADLINE THE SECRETARY OF STATE DECIDED TO KEEP TO HIS SCHEDULE AFTER HIS FIRST DAY IN CHINA WHERE THE RECEPTION WAS AS FRIGID AS THE WINTER WIND BLOWING DOWN FROM MONGOLIA MR CHRISTOPHER CONSIDERED CUTTING THE VISIT SHORT BUT AGAIN MR LORD ALONG WITH THE US AMBASSADOR TO CHINA STAPLETON ROY ARGUED AGAINST SUCH A MOVE THEY SAID THAT CHINESE NEGOTIATIONS OFTEN FIT A PATTERN OF BECOMING MORE ACCOMMODATING AFTER THE FIRST DAY ACCORDING TO US OFFICIALS THE CHINESE LEADERS' TONE DID MODERATE SOMEWHAT ON THE SECOND DAY BUT MR CHRISTOPHER RAN INTO A BUZZ SAW FROM AMERICAN BUSINESS EXECUTIVES THE MEMBERS OF THE AMERICAN CHAMBER OF COMMERCE IN BEIJING CITING THE ENORMOUS BUSINESS STAKE IN CHINA OPENLY CRITICIZED THE ADMINISTRATION'S POLICY OF LINKING MFN TO HUMAN RIGHTS MR CHRISTOPHER'S AIDES WHO WERE EXPECTING SUCH CARPING TRIED TO LIMIT THE DAMAGE BY CLOSING PART OF THE MEETING TO THE PRESS BUT MR CHRISTOPHER'S TRAVELING PRESS CORPS OBJECTED AS THEY WERE BEING ASKED TO LEAVE THE SESSION NOTING THAT MR CHRISTOPHER MOMENTS BEFORE HAD DESCRIBED AMERICAN FREEDOMS ONE REPORTER ASKED IF IN THE INTEREST FREE SPEECH REPORTERS COULD REMAIN IN THE ROOM MR CHRISTOPHER CALLED FOR A SHOW OF HANDS FROM THOSE IN THE BUSINESS AUDIENCE WHO PREFERRED THE SESSION CLOSED THE BUSINESS EXECUTIVES WANTED THEIR MESSAGE CARRIED BY THE US MEDIA NOT ONE HAND WAS RAISED WE ARE CONSTANTLY REMINDED BY OUR CHINESE PARTNERS THAT THE ANNUAL FEAR OF MFN WITHDRAWAL RAISES SERIOUS QUESTIONS ABOUT THE CREDIBILITY OF OUR COMMITMENT TO CHINA COMPLAINED WILLIAM WARWICK CHAIRMAN OF AT&T CHINA INC DURING THE SESSION WITH THE SECRETARY OF STATE MR CHRISTOPHER SAYS THAT CHINA POLICY IS ON COURSE AND THAT THERE IS STILL TIME FOR BEIJING TO MEET THE STANDARDS SET IN MR CLINTON'S EXECUTIVE ORDER THE SECRETARY OF STATE MAINTAINS THAT THE NOISE LEVEL OF HIS VISIT OBSCURED SOME MARGINAL PROGRESS THAT WAS ACHIEVED ON THE LAST DAY OF HIS VISIT NEVERTHELESS US OFFICIALS CONTINUE TO SEND MIXED SIGNALS LAST WEEK AN ADMINISTRATION OFFICIAL TOLD THE WASHINGTON POST THAT THE US IS GIVING PRELIMINARY THOUGHT TO LIMITING THE IMPACT OF REVOKING MFN BY APPLYING IT ONLY TO SOME IMPORTS FROM CHINA THE OFFICIAL EXPLAINED THAT THE CHINESE MIGHT CONSIDER THIS A MORE CREDIBLE THREAT THAN VOWS TO TOTALLY RESCIND MFN BUT CHINA HEARS DIFFERENT VOICES SPEAKING LAST WEEKEND IN HONOLULU CHINESE FINANCE MINISTER LIU SAID I THINK IN THE US CONGRESS THERE ARE DIFFERENT VIEWS AND I THINK IN THE US ADMINISTRATION THERE ARE DIFFERENT VIEWS I THINK IT IS THE VIEW OF US BUSINESS TO SOLVE THIS ISSUE ONCE AND FOR ALL BOB DAVIS AND DAVID WESSEL CONTRIBUTED TO THIS ARTICLE COUNTRIES' PURCHASING POWER IN TRILLIONS OF DOLLARS FIGURES ARE FROM 1991 9403220092 940322 WHO'S NEWS VIACOM INC CHOOSES HOROWITZ TO BE CEO OF NEW MEDIA UNIT NEW YORK VIACOM INC SAID IT NAMED EDWARD D HOROWITZ 47 YEARS OLD SENIOR VICE PRESIDENT OF TECHNOLOGY AND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE NEWLY CREATED NEW MEDIA AND INTERACTIVE TELEVISION UNIT MR HOROWITZ WHO SERVED AS A SENIOR VICE PRESIDENT SINCE JOINING THE COMPANY IN 1989 WILL REPORT TO FRANK J BIONDI JR VIACOM'S PRESIDENT AND CHIEF EXECUTIVE HE WILL ORCHESTRATE THE TECHNOLOGICAL STRATEGY OF THE COMPANY THE NEW MEDIA AND INTERACTIVE TELEVISION UNIT INCLUDES VIACOM NEW MEDIA WHICH PRODUCES AND DISTRIBUTES INTERACTIVE SOFTWARE PARAMOUNT TECHNOLOGY GROUP WHICH DEVELOPS NEW MEDIA PRODUCTS AND MANAGES THIRDPARTY INVESTMENTS AND PARTNERSHIPS AND INTERACTIVE TELEVISION WHICH MANAGES VIACOM'S INTERACTIVE TEST IN CASTRO VALLEY CALIF MR HOROWITZ WILL ALSO CONTINUE TO OVERSEE THE OPERATIONS OF VIACOM RADIO AND HE WILL ASSUME RESPONSIBILITY FOR PARAMOUNT'S LICENSING AND MERCHANDISING ORGANIZATION 9403220091 940322 MARKETING BRIEF NOTED SATELLITE TV PRIMESTAR PARTNERS A DIRECTTOHOME SATELLITE SERVICE SAID IT WOULD ROLL OUT DIGITAL EQUIPMENT TO CUSTOMERS TO INCREASE THE NUMBER OF CHANNELS TO ABOUT 77 CHANNELS FROM 10 IN A THREEMONTH PROGRAM INVOLVING ITS 70000 VIEWING HOMES PRIMESTAR WILL REPLACE ANALOG TV SETTOP BOXES WITH DIGITAL BOXES MADE BY GENERAL INSTRUMENT CORP 9403220090 940322 REVIEW & OUTLOOK EDITORIAL NORTH KOREA'S THREAT WITH WORDS THAT MIGHT HAVE BEEN BORROWED FROM SADDAM HUSSEIN'S BOOK OF BOMBAST NORTH KOREA THREATENED OVER THE WEEKEND TO TURN SEOUL INTO A SEA OF FIRE AFTER A SLIGHT REMISSION THE CONFRONTATION OVER PYONGYANG'S NUCLEAR PROGRAM MAY NOW BE REACHING CRITICAL MASS ONE MIGHT WISH THAT THE CLINTON ADMINISTRATION HAD HUSBANDED ITS LEADERSHIP CHIPS IN ASIA A LITTLE MORE CAREFULLY WE DON'T KNOW WHAT SECRETS ARE CONTAINED IN THE GLOVE BOX AT THE REPROCESSING PLANT IN YONGBYON EITHER KIM IL SUNG HAS DIVERTED ENOUGH ENRICHED PLUTONIUM TO ASSEMBLE THE BEGINNINGS OF A NUCLEAR ARSENAL OR HE KEPT THE INSPECTORS AWAY TO PREVENT THEM FROM DISCOVERING THE EMPTINESS OF HIS NUCLEAR THREAT IN EITHER CASE THE WORLD IS BEING HELD UP FOR NUCLEAR BLACKMAIL IF PYONGYANG IS ALLOWED TO PROFIT FROM THESE STUNTS IT WILL ONLY ENCOURAGE OTHERS THE UN'S NUCLEAR INSPECTORATE IS NOW TAKING UP THE QUESTION OF ECONOMIC SANCTIONS YET THE ONLY EFFECTIVE SQUEEZE ON PYONGYANG WOULD BE A SQUEEZE IN WHICH CHINA AND JAPAN ARE PARTICIPANTS KIM IL SUNG'S PHILOSOPHY OF JUCHE HAS ACCUSTOMED HIS SUBJECTS TO POVERTY AND ISOLATION THE REGIME DEPENDS ONLY ON CHINA FOR OIL AND COAL TO KEEP ITS RAMSHACKLE INDUSTRY GOING AND ON AN INTRAVENOUS DRIP OF HARD CURRENCY FROM KOREANS LIVING IN JAPAN FOR THE CASH TO PAY THESE FUEL BILLS AND FUND A SMATTERING OF TERRORISM AND TECHNOLOGY THEFT ABROAD THIS CASH INFUSION CAME TO ABOUT 1 BILLION LAST YEAR ACCORDING TO THE JAPANESE FINANCE MINISTRY THE IRONY IS THAT THE TWO COUNTRIES MOST CRUCIAL TO ECONOMIC SANCTIONS AGAINST NORTH KOREA ARE THEMSELVES UNDER IMMEDIATE THREAT OF US TRADE SANCTIONS NOBODY QUESTIONS THE GENERAL DESIRABILITY OF JAPAN ACCEPTING MORE IMPORTS OR OF BEIJING GETTING ITS FOOT OFF THE NECKS OF ITS PRODEMOCRACY DISSIDENTS WE'D SAY THAT HISTORY IS PUSHING STEADILY IN THE DIRECTION OF BOTH OUTCOMES AND THAT THE FIRST PRIORITY OF THE US SUPERPOWER IS TO MAKE SURE NOTHING SHUNTS HISTORY OFF THIS PROPITIOUS TRACK NORTH KOREA'S NUCLEAR GAMBIT THREATENS TO DO THAT IT'S UNLIKELY THAT BEIJING CARES A FIG FOR FRATERNAL SOLIDARITY WITH THE REGIME OF KIM IL SUNG FOR CHINA THE REAL QUESTION IS WHETHER THE FEAR OF A NUCLEAR RENEGADE ON ITS BORDER OUTWEIGHS THE FOND PROSPECT IN BEIJING'S EYES OF A US EMBARRASSMENT THAT COULD HASTEN ITS WITHDRAWAL FROM THE REGION IT MAY BE THAT THE CHICKENS ARE COMING HOME FROM THE CLINTON ADMINISTRATION'S EQUIVOCATION IN BOSNIA AND ELSEWHERE OVER WHAT REALLY CONSTITUTES A VITAL US INTEREST EVEN IF THE BEST MOVE NOW WERE TO OUTWAIT KIM IL SUNG THE CARROTWAVING MR CLINTON WOULD HAVE A HARD TIME CONVINCING ANYBODY THAT HE WASN'T JUST TURNING TAIL IF CHINA VETOES SANCTIONS IN THE UN SECURITY COUNCIL WASHINGTON CAN STILL TRY KNOCKING THE FINANCIAL WIND OUT OF PYONGYANG BILATERALLY WITH TOKYO THIS WON'T BE EASY THE KOREAN COMMUNITY THAT SENDS MONEY TO KIM IL SUNG ALSO HAS ITS HOOKS DEEPLY INTO JAPAN'S POLITICAL PARTIES ESPECIALLY THE SOCIALISTS WHO FORM A LINCHPIN IN PRIME MINISTER HOSOKAWA'S SHAKY COALITION WHAT'S MORE MANY KOREANS STILL HAVE FAMILY LIVING IN THE NORTH OFTEN CLOSE RELATIVES WHO WERE LURED BACK BY IDEOLOGICAL DELUSIONS OR THE PROMISE OF AN EDUCATION THESE RELATIVES ARE NOW HELD AS VIRTUAL HOSTAGES TO ENSURE THAT PYONGYANG KEEPS GETTING A RAKEOFF FROM JAPAN'S PACHINKO GAMING INDUSTRY WHICH IS DOMINATED BY ETHNIC KOREANS TOKYO ALSO SUSPECTS THAT AMONG ITS 700000 LAWABIDING KOREANS ARE A FEW SLEEPER TERRORISTS WAITING FOR A SIGNAL FROM PYONGYANG IN SHORT WASHINGTON MAY SOON BE ASKING MR HOSOKAWA TO TAKE SOME SIZABLE POLITICAL RISKS BUT OF COURSE THE CLINTONITES WERE LAST SEEN HOLDING THE JAPANESE PRIME MINISTER IN A HEADLOCK AND EXTORTING FAVORS FOR A SINGLE US COMPANY AND THE PRESIDENT'S MINIONS HAVE BEEN ADVERTISING THEIR INTENTION TO REPEAT THIS PERFORMANCE ON BEHALF OF OTHER DOMESTIC CLIENTS MR CLINTON WILL HAVE TO WORK TWICE AS HARD NOW TO PERSUADE THE JAPANESE TO FOLLOW HIM IN A POLITICALLY RISKY STRATEGY OF CONFRONTATION WITH NORTH KOREA WHAT THEN IS TO BE DONE ABOUT A CLASSIC NUCLEAR THREAT OF THE POST COLDWAR ERA IT MAY BE TOO LATE FOR DEALING WITH KIM BUT WOULD ALL THOSE PEOPLE WHO MOCKED RONALD REAGAN'S STAR WARS RUN BY US ONE MORE TIME WHY BUILDING EVEN MODEST SYSTEMS TO DEFEND LAND MASSES AGAINST NUCLEAR MISSILES WAS A BAD IDEA IN FACT SCIENTISTS WERE MOVING STEADILY UP THE TECHNOLOGY CURVE TOWARD MISSILEDEFENSE SYSTEMS BUT THE CLINTON ADMINISTRATION REFLECTING ROTE DEMOCRATIC THEOLOGY EVISCERATED THE SDI PROGRAM PERHAPS THAT DECISION WILL BE RECONSIDERED AFTER THE WORLD SPENDS ENOUGH TIME RUNNING ALONG THE NUCLEAR BRINK WITH KIM IL SUNG 9403220088 940322 MARKETING & MEDIA BORDEN TO REVERSE RECLASSIFY 40 OF 1992 CHARGE BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN RESPONSE TO PRESSURE FROM THE SECURITIES AND EXCHANGE COMMISSION BORDEN INC SAID IT WILL REVERSE OR RECLASSIFY MORE THAN 40 OF A 642 MILLION RESTRUCTURING CHARGE TAKEN IN 1992 AND RESTATE ITS 1993 AND 1992 EARNINGS BORDEN'S ACTION REFLECTS THE SEC'S INCREASED SCRUTINY OF THE MANY COMPANIES THAT HAVE TAKEN LARGE RESTRUCTURING CHARGES IN RECENT YEARS INDEED SOME ANALYSTS AND ACCOUNTING EXPERTS SAY BORDEN'S CASE MAY BE A WARNING TO OTHER COMPANIES CONCERNING AGGRESSIVE ACCOUNTING METHODS IT APPEARS TO ME THAT THEY MUST HAVE USED SOME VERY AGGRESSIVE ACCOUNTING WITH THIS 1992 CHARGE SAYS JOHN MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES INC FORTY PERCENT OF THE CHARGE IS BEING REVERSED WHICH IS A HIGH AMOUNT BORDEN A FOOD AND CHEMICALS COMPANY SAID IT RECLASSIFIED OR REVERSED 2648 MILLION OF THE 642 MILLION CHARGE IT ORIGINALLY REPORTED IN 1992 AS A RESULT BORDEN'S 1992 NET LOSS NARROWED BY 752 MILLION TO 3644 MILLION OR 254 A SHARE WHILE ITS 1993 NET LOSS WIDENED BY 371 MILLION TO 6307 MILLION OR 447 A SHARE THE COMPANY SAID IT WILL RECLASSIFY 1455 MILLION OF THE CHARGE AS 1992 OPERATING EXPENSES AND REVERSE THE REMAINING 1193 MILLION A SIGNIFICANT PORTION OF THE RECLASSIFIED AMOUNT WAS FOR MARKETING EXPENSES THE REVERSED AMOUNT INCLUDES ACCRUALS FOR PROJECTS CANCELED AFTER THE RECORDING OF THE 1992 CHARGE AND PROMOTIONAL ACCRUALS BORDEN WHICH WAS FIRST CONTACTED BY THE SEC IN JANUARY SAID ITS ACTIONS RESPONDED TO VIEWS EXPRESSED BY THE SEC STAFF THE COMPANY SAID THE RESTATEMENTS WOULDN'T HAVE ANY IMPACT ON 1994 FINANCIAL RESULTS AND DON'T AFFECT THE 650 MILLION RESTRUCTURING CHARGE TAKEN FOR THE FOURTH QUARTER OF 1993 ACCOUNTING EXPERTS SAY THE SEC'S ACTIVITY REFLECTS A GROWING CONCERN THAT COMPANIES MAY BE TAKING ADVANTAGE OF THE POSITIVE EFFECT THAT RESTRUCTURING CHARGES WILL OFTEN HAVE ON A COMPANY'S STOCK WHILE THE CHARGE MAY REFLECT SEVERE OPERATIONAL PROBLEMS THE ANNOUNCEMENT OF A RESTRUCTURING HAS A CATHARTIC EFFECT SAID HOWARD SCHILIT PRESIDENT OF THE CENTER FOR FINANCIAL RESEARCH AND ANALYSIS IN ROCKVILLE MD HE NOTES THAT COMPANIES STRUGGLING WITH POOR EARNINGS COULD BE TEMPTED TO INCLUDE OPERATIONAL COSTS IN THEIR RESTRUCTURING CHARGES THEREBY EASING THE PRESSURE ON OPERATING EARNINGS RESTRUCTURINGS MAY HELP THE STOCK PRICE OF OTHER COMPANIES BUT DID NOTHING FOR BORDEN WHICH HAS BEEN RESTRUCTURING ITS OPERATIONS FOR YEARS BORDEN'S SHARES CLOSED UNCHANGED AT 1475 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WHILE BORDEN HAS DENIED ANY WRONGDOING PEOPLE FAMILIAR WITH THE COMPANY SAY ITS EXECUTIVES HAD PRIVATELY FRETTED OVER ITS AGGRESSIVE ACCOUNTING PROCEDURES FOR YEARS SOME ANALYSTS HAVE ALSO CRITICIZED THE COMPANY FOR THE UNUSUAL METHODS IT USED TO KEEP ITS DEBT LEVELS LOW IN FEBRUARY LAWRENCE O DOZA BORDEN'S 55YEAROLD SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ELECTED TO TAKE EARLY RETIREMENT AFTER NINE YEARS AT THE COMPANY BORDEN IS CURRENTLY SEEKING A REPLACEMENT FOR MR DOZA A BORDEN SPOKESMAN SAID THE COMPANY'S POSITION WAS THAT THE EXPENSES INCLUDED IN THE 1992 CHARGE WERE TRULY INCREMENTAL AND RELATED TO ONETIME ADVERTISING AND PROMOTION PROGRAMS NOT OCCURRING IN THE NORMAL COURSE OF BUSINESS THE SEC DECLINED TO COMMENT 9403220087 940322 TECHNOLOGY SONY CORP MAY PUSH TO STALL PATENT SUIT BROUGHT BY KODAK PARK RIDGE NJ JAPAN'S SONY CORP EMBROILED IN A PATENTINFRINGMENT SUIT BROUGHT BY EASTMAN KODAK CO SAID A RECENT ACTION BY THE US PATENT AND TRADEMARK OFFICE MAY PROMPT SONY TO ASK FOR A POSTPONEMENT OF THE SUIT KODAK SUED SONY CORP AND ITS SONY CORP OF AMERICA UNIT LAST MARCH FOR ALLEGEDLY INFRINGING ON KODAK'S 1981 US PATENT COVERING MAGNETIC RECORDING TECHNOLOGY USED IN ITEMS SUCH AS CAMCORDERS AND VIDEOCASSETTE RECORDERS SONY HAS SAID THAT THE KODAK PATENT IS INVALID BASED ON TECHNOLOGY WHICH WAS IN THE PUBLIC DOMAIN BEFORE KODAK FILED ITS PATENT BUT LAST WEEK THE US PATENT AND TRADEMARK OFFICE ISSUED A FIRST ACTION REJECTING KODAK'S PATENT CLAIMS AND CASTING A POTENTIALLY HARMFUL BLOW TO KODAK'S SUIT AGAINST SONY THE ACTION CAME AFTER SONY INTRODUCED NEW EVIDENCE TO THE OFFICE AND ASKED FOR A REEXAMINATION OF THE PATENT IN JUNE OF LAST YEAR KODAK SAID YESTERDAY THAT IT WOULD RESPOND TO THE ACTION WITHIN THE ALLOTED 60DAY PERIOD BUT WOULD NOT COMMENT FURTHER ON ITS PLANS OR ON THE IMPENDING LAWSUIT SCHEDULED FOR TRIAL JUNE 14 THE ROCHESTER NYBASED PHOTOGRAPHY AND HEALTH CONCERN CAN EITHER TAKE EXCEPTION TO LAST WEEK'S ACTION OR AMEND THE PATENT IF KODAK TAKES EXCEPTION AND THE ACTION IS STILL UPHELD KODAK CAN THEN TURN TO THE OFFICE'S BOARD OF APPEALS SONY SAID IT WAS PLEASED WITH THE INITIAL ACTION AND SAID IT WOULD CONSIDER USING THE DECISION TO REQUEST A MOTION FOR POSTPONEMENT OF THE LITIGATION SONY FILED A SIMILAR MOTION LATE LAST YEAR BUT IT WAS DISMISSED HOWEVER SONY COULD ASK THE COURT TO REVISIT THE MOTION OR IT COULD FILE A NEW ONE BASED ON THIS MOST RECENT ACTION BY THE PATENT AND TRADEMARK OFFICE 9403220086 940322 US APPROVES AGRIDYNE PATENTS SALT LAKE CITY AGRIDYNE TECHNOLOGIES INC SAID THE US PATENT OFFICE APPROVED PATENTS RELATED TO THE COMPANY'S USE OF NEEM SEED FOR MAKING BIOINSECTICIDE NEEM TREES GROW IN INDIA AFRICA AND OTHER EQUATORIAL AREAS THE PATENTS COVER AGRIDYNE'S TWO MAIN PRODUCTS AZATIN AND TERPLEX INSECTICIDES AND ALIGN AN INSECTICIDE IT EXPECTS TO SHIP LATE THIS YEAR 9403220085 940322 INTERNATIONAL WORLD WIRE COMPILED BY CATHERINE BOLGAR JOBLESSNESS IN THE EUROPEAN UNION WILL CONTINUE TO INCREASE THIS YEAR AND NEXT TO A RECORD 1125 BUT IT IS LIKELY THAT ECONOMIC GROWTH WILL REACH 3 IN 1996 AND THUS GENERATE MORE JOBS THE EU COMMISSION SAID THE EU ECONOMY APPEARS TO HAVE REACHED THE TROUGH OF THE RECESSION BUT THE RECOVERY IS EXPECTED TO BE SLOW THE OVERALL LOSS OF OUTPUT IN THE CURRENT RECESSION COULD BE THE MOST SEVERE IN THE EU'S HISTORY WORSE THAN THE RECESSIONS OF 197475 AND 198083 ALTHOUGH THE ECONOMIC SHRINKAGE WAS SHARPER IN 1975 IN THE WAKE OF THE FIRST OIL SHOCK THAT CONTRACTION WAS PRECEDED AND FOLLOWED BY PERIODS OF STRONGER GROWTH STILL THE MAIN ECONOMIC INDICATORS HAVE IMPROVED AND SOME OF THEM ESPECIALLY THE INDUSTRIAL AND CONSTRUCTION CONFIDENCE INDICATORS ARE AGAIN ON A SLIGHTLY RISING TREND EUWIDE INFLATION FELL TO 38 IN 1993 FROM 46 IN 1992 AND 54 IN 1991 THE INFLATION RATE IS EXPECTED TO DECLINE FURTHER TO 35 THIS YEAR AND 32 IN 1995 IRAQ IS RESTORING THE 2000YEAROLD RELIGIOUS AND TRADING CITY OF HATRA FOR AN INTERNATIONAL ARTS FESTIVAL IN APRIL IRAQ HAD SPENT ABOUT 15 MILLION ON REFURBISHING THE CITY SITUATED BETWEEN THE TIGRIS AND EUPHRATES RIVERS 210 MILES NORTH OF BAGHDAD BEFORE THE COUNTRY'S 1990 INVASION OF KUWAIT BROUGHT UNITED NATIONS SANCTIONS IRAQ EARMARKED MILLIONS MORE DOLLARS LAST YEAR TO PREPARE HATRA FOR THE FESTIVAL IN SPITE OF UN SANCTIONS THE COUNTRY EXPECTS THE EVENT TO DRAW HUNDREDS OF PERFORMING TROUPES AND DANCERS FROM THE MIDDLE EAST AND EUROPE BRITONS ARE BECOMING MORE AFRAID OF CRIME A READERS' DIGEST SURVEY FOUND OF THE 2000 PEOPLE INTERVIEWED 77 SAID THEY WERE AFRAID OF BURGLARY COMPARED WITH 60 IN THE LAST SUCH SURVEY IN 1987 IN ADDITION 57 OF WOMEN SURVEYED SAID THEY FEARED RAPE HOWEVER THE GOVERNMENT SAYS THE VAST MAJORITY OF CRIMES IN BRITAIN ARE AGAINST PROPERTY RATHER THAN VIOLENCE TOWARD PEOPLE RECORDED CRIME IN ENGLAND AND WALES ROSE 38 IN 1992 TO A RECORD 57 MILLION OFFENSES AND HAS RISEN 74 OVER THE PAST 10 YEARS THE EUROPEAN UNION COMMISSION CALLED FOR A MASSIVE RESTRUCTURING OF THE EU'S TROUBLED AUDIOVISUAL INDUSTRY THE PROPOSAL SAYS A TAX COULD BE LEVIED ON TELEVISION PROGRAMS AND FILMS REGARDLESS OF THEIR ORIGIN WITH REVENUE REDISTRIBUTED TO BENEFIT THE EUROPEAN INDUSTRY'S RESTRUCTURING THE PROPOSAL COULD BE ADOPTED AS SOON AS NEXT TUESDAY THE US SHARE OF THE EUROPEAN MARKET FOR FEATURE FILMS IS ESTIMATED AT 80 UP FROM 60 A DECADE AGO THE EUROPEAN MOVIE MARKET IS VALUED AT MORE THAN 10 BILLION A YEAR CUBAN AUTHORITIES ARE CLAMPING DOWN ON ILLICIT TRADE AND ROBBERY OF FARM PRODUCE BOUND FOR HAVANA THE TRABAJADORES NEWSPAPER REPORTED NEARLY A THIRD OF PRODUCE FROM HAVANA PROVINCE FAILS TO REACH THE CITY'S CONSUMERS ALL FARM PRODUCE IS SUPPOSED TO BE SOLD TO THE STATE WHICH THEN DISTRIBUTES IT IN THE LATEST CRACKDOWN VEHICLES USED FOR ILLICIT TRADE ARE TO BE CONFISCATED AND TRUCKS CARRYING FARM PRODUCE WILL BE STRICTLY CONTROLLED A SURVEY OF 18 OF SWEDEN'S LEADING ECONOMISTS SHOWS A SHARP SPLIT OVER WHETHER THE COUNTRY A PROSPECTIVE MEMBER OF THE EUROPEAN UNION SHOULD ALSO JOIN THE EU'S PROPOSED COMMON CURRENCY THIS MARKS A SHIFT FROM A YEAR AGO WHEN ALMOST ALL TOP SWEDISH ECONOMISTS FAVORED PARTICIPATION IN A COMMON EU CURRENCY THE CURRENCY UNION WHICH WOULD BE PRECEDED BY FIXED EXCHANGE RATES IS THE THIRD PHASE OF THE EUROPEAN MONETARY UNION PART OF THE 1991 MAASTRICHT AGREEMENT ON EUROPEAN UNITY THE FIRST PHASE WHICH CALLS FOR ALLOWING FREE MOVEMENT OF CAPITAL BETWEEN EU STATES HAS LARGELY BEEN ACCOMPLISHED THE SECOND PHASE BEGAN LAST YEAR WITH CREATION OF THE FORERUNNER TO A EUROPEAN CENTRAL BANK SOUTH KOREA'S FINANCE MINISTRY ANNOUNCED A SWEEPING PACKAGE OF LOOSER REGULATIONS ON CAPITAL MARKETS AS A RESULT THE CEILING FOR LISTED COMPANIES' INVESTMENTS IN OTHER LISTED FIRMS WILL RISE TO 30 OF THEIR CAPITAL FROM 20 UNDER THE SOFTENED REGULATIONS SECURITIES FIRMS WON'T NEED ADVANCE GOVERNMENT APPROVAL WHEN THEY BUY REALESTATE VALUED AT LESS THAN 50 OF THEIR CAPITAL RELOCATE BRANCHES OR INVEST IN OVERSEAS SUBSIDIARIES THE EASED REGULATIONS ARE EXPECTED TO TAKE EFFECT BY JUNE INVESTMENT TRUST FIRMS WILL BE FREED FROM REQUIREMENTS THAT THEY MAINTAIN STATE AND PUBLIC BONDS EQUIVALENT TO 30 OF THEIR NET BOND HOLDINGS FOREIGN SECURITIES FIRMS WILL BE ABLE TO OPEN OFFICES OR BRANCHES IN SOUTH KOREA UNLESS THEIR HEAD OFFICES HAVE RECEIVED WARNINGS FROM THEIR HOME COUNTRY REGULATORS IN THE PAST TWO YEARS SAUDI ARABIA HAS SAID IT WILL PAY 20 MILLION TO HELP PALESTINIANS SET UP DEVELOPMENT HEALTHCARE AND SOCIAL FACILITIES IN ISRAELIHELD TERRITORIES A TRAVEL AGENCY IN ABKHAZIA IS OFFERING FREE TOURS OF THE BREAKAWAY GEORGIAN PROVINCE WITH ARMED GUARDS INCLUDED THE BLACK SEA REGION WAS A POPULAR DESTINATION FOR RUSSIAN TOURISTS BEFORE FIGHTING BROKE OUT THERE IN 1992 9403220084 940322 MARKETSCAN FROM CHOICES TO CHECKOUT THE GENDERS BEHAVE VERY DIFFERENTLY IN SUPERMARKETS BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL JAKE BRAMHALL CAN IDENTIFY THE MAKE MODEL AND NUMBER OF CYLINDERS OF ANY PASSING CAR BUT HE CAN'T TELL THE DIFFERENCE BETWEEN STEWED TOMATOES AND TOMATO PASTE IN RECENT WEEKS MR BRAMHALL A 25YEAROLD MANAGEMENT CONSULTANT WHO LIVES IN MONTCLAIR NJ HAS ALSO BROUGHT HOME THE WRONG BRAND OF CRANBERRY JUICE AND BOUGHT CHARMIN INSTEAD OF SCOTT TOILET PAPER MR BRAMHALL RATES A C MINUS IN GROCERY SHOPPING ACCORDING TO HIS WIFE ELAINE MORALES HE COMES BACK WITH CANDIES JUST LIKE A LITTLE KID WHILE MORE MEN ARE PUSHING SHOPPING CARTS THESE DAYS MANY LIKE MR BRAMHALL SHOW LITTLE APTITUDE IN THE SUPERMARKET AND DISPLAY MARKEDLY DIFFERENT PURCHASING BEHAVIOR FROM WOMEN THE SUPERMARKET IS STILL A WOMAN'S WORLD SAYS MONA DOYLE PRESIDENT OF CONSUMER NETWORK INC A PHILADELPHIA CONSUMERRESEARCH CONCERN FOR ALL THE TALK OF CHANGING ROLES IN TODAY'S SOCIETY SHE SAYS OLD STEREOTYPES ARE WHAT DRIVE THE NUMBERS CONSUMER EXPERTS SAY MANY WOMEN VIEW THE SUPERMARKET AS AN ARENA WHERE THEY CAN EXERCISE THEIR SKILLS IN GETTING THE BEST VALUE FOR THEIR DOLLAR HOW GOOD A SUPERMARKET SHOPPER YOU ARE IS STILL PART OF WOMEN'S SELFESTEEM PACKAGE MS DOYLE SAYS ACCORDING TO A STUDY CONDUCTED LAST YEAR BY THE FOOD MARKETING INSTITUTE 93 OF THE WOMEN JUDGED SALES OR MONEYSAVING SPECIALS AS VERY OR SOMEWHAT IMPORTANT WHILE 84 OF MEN DID FOR MEN BEING A LOUSY SHOPPER IS PART OF A KIND OF MACHO IMAGE SAYS STEVE BARNETT AN ANTHROPOLOGIST AND PRINCIPAL WITH GLOBAL BUSINESS NETWORK WHO HAS STUDIED MEN'S SHOPPING BEHAVIOR THE ATTITUDE IS I CAN'T SHOP WELL I DO IT IF MY WIFE MAKES ME DO IT' HE SAYS MR BARNETT DIVIDES MALE SHOPPERS INTO TWO CATEGORIES LOST IN SPACE THEY WANDER AROUND IN A DISORGANIZED STATE AND DEMONS OF EFFICIENCY THEY RIP THROUGH THE AISLES AS QUICKLY AS POSSIBLE MEN DON'T LOOK FOR THINGS ON SALE OR MAKE PRICE COMPARISONS SAYS MR BARNETT WHILE WOMEN WILL WATCH ITEMS BEING CHECKED OUT TO MAKE SURE THEY ARE CHARGED THE RIGHT PRICE MEN KIND OF VAGUE OUT DURING THE CHECKOUT PROCESS ALTHOUGH MALE SHOPPERS STILL ARE A DEFINITE MINORITY THEIR NUMBERS ARE RISING ACCORDING TO A 1993 REPORT BY PROGRESSIVE GROCER MAGAZINE 19 OF THE MEN SURVEYED SAID THEY WERE THE PRIMARY GROCERY SHOPPER COMPARED WITH 14 IN 1988 PACO UNDERHILL MANAGING DIRECTOR OF ENVIROSELL INC WHICH STUDIES CONSUMER BEHAVIOR ESTIMATES THAT AS MANY AS A THIRD OF THE SHOPPERS ON AN AVERAGE WEEKEND ARE MEN JUDGING BY THEIR SHOPPING LISTS MEN AREN'T PARTICULARLY INTERESTED IN THE NECESSITIES OF LIFE A STUDY BY INFORMATION RESOURCES INC FOUND MALE SHOPPERS DEVOTING MORE OF THEIR BASKETS TO BEER CUPCAKES ICE CREAM AND HOT DOGS THAN WOMEN MEN TEND TO BUY SWEET ITEMS OR SNACKS ESPECIALLY YOUNGER MEN SHOPPING IN CONVENIENCE STORES SAYS A SPOKESWOMAN FOR PHILIP MORRIS COS' ENTENMANN'S BAKED TREATS WOMEN BUY MORE COTTAGE CHEESE REFRIGERATED YOGURT AND SALAD DRESSING WOMEN ALSO BUY MORE PERSONALCARE AND CLEANING PRODUCTS THAN MEN PARTICULARLY FACIAL AND TOILET TISSUE AND LAUNDRY AND DISH DETERGENT ACCORDING TO INFORMATION RESOURCES SINGLE MEN BUY MORE LOWCALORIE SODA THAN SINGLE WOMEN AS FOR SINGLE WOMEN THEY BUY MORE REFRIGERATED BACON MAYONNAISE AND WHITE SUGAR THAN SINGLE MEN MARKETERS SPECULATE THAT THESE INGREDIENTS ARE OFTEN USED IN RECIPES THAT WOMEN SHOPPERS ARE MORE APT TO TRY WHEN IT COMES TO BRANDS MALE SHOPPERS ARE A HORROR FOR MARKETERS BECAUSE THEY ARE LESS INTERESTED IN BARGAINS AND TEND TO BUY ON THE RUN MEN ARE MORE LIKELY TO GRAB A BIGNAME BRAND THAN WOMEN YET AT THE SAME TIME MANY MALE SHOPPERS PARTICULARLY MARRIED ONES PAY LITTLE ATTENTION TO WHICH NAME BRANDS THEY USE AT HOME I DON'T LOOK AT BRAND NAMES SAYS JAMES PETHERBRIDGE A 34YEAROLD SHOPPER WHO IS SINGLE AND WHO WORKS FOR THE INTERNAL REVENUE SERVICE STUDYING THE SNACK SHELVES FOR THAT EVENING'S DINNER OF TORTILLA CHIPS AND DIP HE ADDS IT'S WHAT HITS ME AT THE MOMENT THE PRODUCE DEPARTMENT WHICH USUALLY LACKS BRAND NAMES CAN PRESENT PARTICULAR PROBLEMS IN ONE SUPERMARKET RECENTLY THREE MALE COLLEGE STUDENTS APPROACHED SEVERAL WOMEN TO FIND OUT WHETHER THEIR CANTALOUPE WAS RIPE IF IT'S AN UNUSUAL ITEM I'M NOT GOING TO KNOW WHAT IT IS SAYS MR BRAMHALL THE MANAGEMENT CONSULTANT LIKE A LEEK WHAT'S THAT NOT SURPRISINGLY SUCH UNCERTAIN MALE SHOPPERS ARE SUSCEPTIBLE TO SUGGESTION KIDS WHO GO TO THE STORE WITH THEIR DADS CAN GET AWAY WITH MURDER IT'S EASIER TO TALK DAD INTO BUYING SOMETHING THAN MOM SAYS MR UNDERHILL RECALLING ONE INSTANCE WHEN THE FATHER CHOSE ONE SHAMPOO WHILE HIS YOUNG DAUGHTER GRABBED ANOTHER BRAND WHO DO YOU THINK WON HE ASKS MALE SHOPPERS HAVE A PREDILECTION FOR MAKING NUMEROUS LASTMINUTE GROCERY STOPS RATHER THAN PLANNING AHEAD AND BUYING EVERYTHING AT ONCE ACCORDING TO THE INFORMATION RESOURCES STUDY SINGLE MALE SHOPPERS VISITED THE SUPERMARKET 99 TIMES IN A YEAR WHILE SINGLE WOMEN WENT TO THE STORE 80 TIMES THE DIFFERENCE IS EVEN GREATER FOR FAMILIES HEADED BY MEN 103 TRIPS A YEAR VS 836 FOR FAMILIES HEADED BY WOMEN WITHOUT A WOMAN IN THEIR LIVES MANY MEN SAY THEY LIVE DAY TO DAY JAY ADAMS A SINGLE 32YEAROLD NEW YORK STOCKBROKER WAITED PATIENTLY IN THE 10 ITEMS OR LESS LINE WITH BANANAS AND ORANGE JUICE MY MORNING REGIMEN HAAGENDAZS ICE CREAM MY EVENING REGIMEN AND A SINGLE ROLL OF TOILET PAPER INSURANCE I'M NOT SURE I HAVE ANY AT HOME IF I HAD SOMEBODY REGIMENTING MY SCHEDULE I WOULD BE MORE ORGANIZED HE SAYS THE TENDENCY FOR MALE SHOPPERS TO MAKE 11THHOUR DASHES TO THE MARKET MAKES THEM PARTICULARLY SUSCEPTIBLE TO IMPULSE PURCHASES LIKE POTATO CHIPS AND COOKIES YOU KNOW THE OLD SAYING NEVER SHOP AN AN EMPTY STOMACH' SAYS ED RUSSELL DIRECTOR OF MARKET RESEARCH SERVICES FOR CAMPBELL SOUP CO MEN TEND TO DO THAT MORE IT'S LIKELY THAT SOME OF THE DIFFERENCES WILL FADE AS MEN SHOP MORE FREQUENTLY AND WOMEN SHOP LESS INDEED SOME BUSY WORKING WOMEN ALREADY SHOP A LOT MORE LIKE MEN THAN THEIR MOTHERS DID MOLLY LUCAS A PUBLICHEALTH ADMINISTRATOR PROWLING THE AISLES OF A NEW YORK MARKET FOR THAT NIGHT'S DINNER SAYS SOMETIMES I GET AMBITIOUS AND MAKE A BIG LIST AND BUY A LOT OF THINGS BUT THEN IT ALL SITS IN THE FRIDGE AND ROTS AVERAGE EXPENDITURE BY SINGLE MEN AND SINGLE WOMEN IN SELECTED SUPERMARKET CATEGORIES DURING THE 52 WEEKS ENDED AUG 22 1993 9403220083 940322 SCIENCE BENEATH LOS ANGELES MORE EARTHQUAKES ARE LURKING BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL TWO MONTHS AFTER THE DEADLY LOS ANGELES EARTHQUAKE SCIENTISTS ARE STUDYING WHAT HAPPENED AND WHY WITH GROWING CONCERN NEW TECHNIQUES IMPROVED SENSORS AND FASTER CALCULATIONS HAVE GIVEN SCIENTISTS MORE INFORMATION ON NORTHRIDGE AS GEOLOGISTS CALL THE QUAKE THAN ON ANY EARTHQUAKE IN HISTORY SENSITIVE INSTRUMENTS HAVE GENERATED ELABORATE DATA ABOUT THE EPICENTER OF THE QUAKE AS WELL AS DETAILS ON SOME 6000 AFTERSHOCKS AND THE MINUTE MOVEMENTS OF SOME MOUNTAINS AND VALLEYS A MAILBOX ON THE INTERNET LETS SCIENTISTS AS FAR AWAY AS JAPAN AND EUROPE EXCHANGE DATA AND ANALYSIS THE FIRST USE OF THE DIGITAL HIGHWAY TO SPEED STUDY OF AN EARTHQUAKE THERE'S SO MUCH DATA THAT IT'S PRACTICALLY GRINDING DOWN OUR COMPUTERS SAYS KAYE SHEDLOCK CHIEF OF THE EARTHQUAKE AND LANDSLIDE HAZARDS BRANCH OF THE US GEOLOGICAL SURVEY IT'S THE DETAILS OF GRINDING LAND MASSES HOWEVER THAT MOST CONCERN SCIENTISTS AND AS SUNDAY'S POWERFUL AFTERSHOCK SUGGESTS THE EARTH BENEATH LOS ANGELES IS FAR FROM SETTLED PRESAGING MORE AND MAYBE BIGGER EARTHQUAKES TO COME THE INITIAL LESSONS ALONE ARE STRIKING SCIENTISTS SAY IN ITS 10 SECONDS OF EXPLOSIVE VIOLENCE THE MIDSIZED NORTHRIDGE EARTHQUAKE WHICH REGISTERED 67 IN MAGNITUDE SHOOK THE GROUND OVER A WIDE AREA AT SPEEDS FAR HIGHER THAN EVER RECORDED ENDING LONGSTANDING DEBATES ABOUT HOW RAPID SUCH MOVEMENTS GET AND RAISING QUESTIONS ABOUT CONSTRUCTION IN QUAKEPRONE AREAS THE NORTHRIDGE QUAKE IS THE LATEST AND MOST DAMAGING OF SIX SUBSTANTIAL MIDSIZED TEMBLORS IN SOUTHERN CALIFORNIA OVER THE PAST SIX YEARS SCIENTISTS SAY THESE ALONG WITH SEVERAL EARLIER QUAKES DATING TO 1971 REPRESENT A BURST OF SEISMIC ACTIVITY AFTER DECADES OF QUIET WE'RE SEEING A PRONOUNCED INCREASE IN THE SEISMIC ENERGY RELEASE THROUGHOUT SOUTHERN CALIFORNIA SAYS DR SHEDLOCK SOME SCIENTISTS PREDICT THAT THE INCREASED ACTIVITY IS A PRELUDE TO A REALLY BIG EARTHQUAKE ALONG THE HUGE SAN ANDREAS FAULT THE SAN FRANCISCO QUAKE OF 1906 THEY SAY FOLLOWED TWO DECADES OF MIDSIZED EVENTS IN THE REGION THE TECTONIC PLATES IN THE EARTH'S CRUST CREATE ENERGY BY CONSTANTLY GRINDING TOGETHER IN CALIFORNIA THE PACIFIC PLATE MEETS THE NORTH AMERICAN PLATE ALONG THE SAN ANDREAS FAULT STRESSES ARE DISTRIBUTED ALONG THE SAN ANDREAS AND THOUSANDS OF SMALLER FAULTS NEARBY WHEN THE STRAINS GET TOO MUCH THE FAULTS SNAP CREATING AN EARTHQUAKE THE LONGER THEY TAKE TO SNAP THE LARGER THE QUAKE'S INTENSITY SEVERAL OF THE AREA'S RECENT QUAKES INCLUDING NORTHRIDGE HAVE OCCURRED ON PREVIOUSLY UNKNOWN GEOLOGICAL FAULTS NEAR BUT NOT DIRECTLY LINKED TO THE SAN ANDREAS WHAT CONCERNS US IS THAT SO MANY OF THESE EARTHQUAKES IN THE LAST 10 YEARS OR SO ARE OCCURRING NEAR AN AREA OF THE SAN ANDREAS THAT HASN'T HAD A MAJOR EARTHQUAKE SINCE 1857 SAYS THOMAS HENYEY EXECUTIVE DIRECTOR OF THE SOUTHERN CALIFORNIA EARTHQUAKE CENTER THE WORRY IS THAT WHILE SMALLER FAULTS ARE RELEASING ENERGY THE SAN ANDREAS IS STORING IT UP TO BE RELEASED IN A HUGE JOLT WHEN THE STRESS GETS TOO GREAT SIMPLY PUT WE'RE HAVING A LOT OF EARTHQUAKES BUT IRONICALLY NOT ENOUGH SAYS LUCILE M JONES A SEISMOLOGIST WITH THE US GEOLOGICAL SURVEY LABS AT THE CALIFORNIA INSTITUTE OF TECHNOLOGY I CALL IT AN EARTHQUAKE DEFICIT WHETHER THEY TRIGGER A BIG ONE OR NOT IT SEEMS CLEAR THAT THE EARTH BENEATH LOS ANGELES IS RIDDLED WITH A NETWORK OF SMALL UNDETECTABLE FAULTS BLIND THRUSTS AS THESE WEBS OF FAULTS ARE CALLED HAVE BEEN RESPONSIBLE FOR MUCH OF LOS ANGELES'S RECENT ROCKING SUNDAY'S AFTERSHOCK RADIATED FROM A SUBSECTION OF THE PREVIOUSLY HIDDEN NORTHRIDGE FAULT ACCORDING TO RESEARCH BY KENNETH HUDNUT A GEOPHYSICIST AT THE US GEOLOGICAL SURVEY THE POWER OF THE BLIND THRUSTS APPEARS TO DERIVE FROM BIGGER FORCES THAT HAVE SLOWLY BEEN SQUEEZING THE NORTHERN AND SOUTHERN EDGES OF LOS ANGELES COUNTY TOGETHER FIVE YEARS AGO DR HUDNUT STARTED USING SATELLITES TO MEASURE MOVEMENTS OF THE EARTH IN DOZENS THEN HUNDREDS OF LOCATIONS AROUND SOUTHERN CALIFORNIA LAST JUNE HE AND OTHER RESEARCHERS BEGAN CONTINUOUS MONITORING OF A 40MILE CROSSSECTION OF LOS ANGELES IT WAS FORTUNATE TIMING DAY BY DAY THE GROUND STATIONS HAVE TRACKED MINUSCULE SQUEEZING OF THE EARTH BENEATH LOS ANGELES SOUTH OF THE NORTHRIDGE QUAKE SITE PRELIMINARY UNPUBLISHED INFORMATION SUGGESTS THAT THE BASIN HAS BEEN CLOSING RECENTLY AT ABOUT EIGHT MILLIMETERS A YEAR COMPARED WITH THE FIVEMILLIMETER RATE MEASURED DURING THE LATE 1980S MOREOVER ABOUT 170 DAYS BEFORE THE NORTHRIDGE EARTHQUAKE THE SOUTHWEST EDGE OF THE MONITORED AREA BEGAN TO MOVE EAST AT A RATE OF ABOUT THREE MILLIMETERS ANNUALLY THEN ABOUT 100 DAYS BEFORE THE QUAKE THE NORTHEAST EDGE BEGAN A SIMILAR MIGRATION MR HUDNUT WON'T SAY THAT THE SQUEEZING MOVEMENT FORESHADOWS MORE QUAKES IT IS POSSIBLE FOR THE EARTH'S CRUST TO SCRUNCH TOGETHER WITHOUT TRIGGERING EARTHQUAKES SCIENTISTS SAY BUT IF THE ENORMOUSLY POWERFUL CONTRACTION AROUND LOS ANGELES ISN'T BEING EASED IN SOME OTHER WAY THEY SAY THE PROSPECT IS FOR MORE QUAKES OF ROUGHLY THE NORTHRIDGE SIZE A GIANT EARTHQUAKE THAT WOULD EASE THE STRAIN IN ONE MASSIVE JOLT COULD EXCEED A MAGNITUDE OF 80 TIMING OF THAT PROSPECT IS NEARLY IMPOSSIBLE TO PREDICT IN WEATHER FORECASTING YOU CAN SEE THE STORM COMING SAYS THE GEOLOGICAL SURVEY'S DR JONES IN SEISMOLOGY IT DOESN'T QUITE WORK THAT WAY 9403220082 940322 LEISURE & ARTS BOOKSHELF WRITER WHO DEFIES DEFINITION BY LINDA SIMON UNCLE TOM'S CABIN WAS A PUBLISHING PHENOMENON WHEN IT APPEARED IN 1852 SELLING 10000 COPIES IN ONE WEEK 300000 THE FIRST YEAR IN THE US AND AN ASTOUNDING 15 MILLION COPIES IN GREAT BRITAIN THE BOOK ESTABLISHED HARRIET BEECHER STOWE AS A MAJOR AMERICAN WRITER SO YOU'RE THE LITTLE WOMAN WHO WROTE THE BOOK THAT STARTED THIS GREAT WAR ABRAHAM LINCOLN IS SAID TO HAVE EXCLAIMED TO STOWE AT THEIR FIRST MEETING AS HISTORIAN JOAN D HEDRICK SHOWS US IN THIS INTELLIGENT THOROUGHLY RESEARCHED BIOGRAPHY HARRIET BEECHER STOWE OXFORD UNIVERSITY PRESS 507 PAGES 35 STOWE'S ENGAGEMENT IN THE FIERY CONTROVERSIES OF HER TIME DID NOT SET HER APART AS A VISIONARY OR A SAINT A SOMETIME TEACHER OF RHETORIC AND MOTHER OF SEVEN SHE WAS HARDLY ALONE IN HER VIEWS ON MANY SOCIAL AND CULTURAL ISSUES OF THE TIME ABOUT THE ROLE OF RELIGION IN A SECULAR SOCIETY WOMEN IN A PATRIARCHAL SOCIETY AND BLACKS IN A WHITE SOCIETY LIKE MANY OF HER CONTEMPORARIES STOWE OFTEN WAS INCONSISTENT EVEN CONTRADICTORY AN ADVOCATE OF EDUCATION FOR WOMEN AND BLACKS SHE PAID LITTLE ATTENTION TO THE SCHOOLING OF HER DAUGHTERS WHO WERE TRAINED FOR NOTHING MORE THAN HOUSEKEEPING SHE WROTE WITH PASSION AGAINST SLAVERY YET HER PORTRAYAL OF BLACKS MS HEDRICK POINTS OUT REFLECTS THE BLEND OF PHILANTHROPIC AND PATERNALISTIC ATTITUDES THAT ONE HISTORIAN HAS CALLED ROMANTIC RACIALISM SHE SUPPORTED WOMEN'S SUFFRAGE BUT WOULD NOT LEND HER NAME TO THE EDITORIAL BOARD OF ELIZABETH CADY STANTON'S JOURNAL REVOLUTION HARRIET ELIZABETH BEECHER WAS BORN IN 1811 THE SEVENTH CHILD OF LYMAN BEECHER A MINISTER AND HIS WIFE ROXANA WHO DIED WHEN HARRIET WAS FIVE THE BEECHERS WERE AN UNUSUAL FAMILY MS HEDRICK TELLS US PROVIDING A MIXEDSEX CULTURE IN WHICH AT THE SIBLING LEVEL A ROUGH EQUALITY PREVAILED ALTHOUGH GENDER DISTINCTIONS WERE MADE WITHIN THE FAMILY DAUGHTERS WERE OFTEN EXPOSED TO THE SAME INFLUENCES AS SONS SUPERVISING THE SCHOOLING WAS THE ELDEST DAUGHTER CATHARINE WHO HAD FIRM IDEAS ABOUT THE HIGH QUALITY OF EDUCATION THAT WOMEN SHOULD BE OFFERED AT HER INSISTENCE HARRIET LEARNED SUCH SUBJECTS AS LATIN GREEK LOGIC AND RHETORIC WHEN SHE WAS 24 HARRIET MARRIED THE WIDOWER OF ONE OF HER FRIENDS CALVIN STOWE A TEACHER OF GREEK AND BIBLICAL STUDIES INTELLECTUALLY SUITED THEY WERE TEMPERAMENTALLY OPPOSITE HARRIET WAS OPTIMISTIC IMPETUOUS DISORGANIZED CALVIN WAS UNREMITTINGLY ORDERLY AND DEEPLY PESSIMISTIC HE PREDICTED DOOM AND DEATH SO REGULARLY MS HEDRICK REMARKS THAT IT IS PERHAPS NOT SURPRISING THAT OCCASIONALLY HE WAS RIGHT THEIR MARRIAGE SEEMS TO HAVE BEEN ONE OF GENUINE RESPECT CERTAINLY CALVIN ENCOURAGED HIS WIFE'S LITERARY WORK AND HER INDEPENDENCE AFTER SHE PUBLISHED A FEW PIECES UNDER THE NAME MRS HE BEECHER STOWE HE OFFERED SOME ADVICE YOU MUST BE A LITERARY WOMAN HE WROTE TO HER WHEN SHE WAS IN BOSTON MEETING WITH PUBLISHERS MAKE ALL YOUR CALCULATIONS ACCORDINGLY GET A GOOD STOCK OF HEALTH BRUSH UP YOUR MIND DROP THE E OUT OF YOUR NAME AND WRITE YOURSELF ONLY AND ALWAYS HARRIET BEECHER STOWE WHICH IS A NAME EUPHONIOUS FLOWING AND FULL OF MEANING AND MY WORD FOR IT YOUR HUSBAND WILL LIFT UP HIS HEAD IN THE GATE AND YOUR CHILDREN WILL RISE UP AND CALL YOU BLESSED HER CHILDREN WERE AMONG THE ASSORTED RELATIVES TO WHOM STOWE READ ALOUD EACH EVENING SHE DEPENDED ON THEIR COMMENTS TO REVISE HER WORK AND ON THEIR COOPERATION IN RUNNING THE HOUSEHOLD TO ENABLE HER TO PURSUE HER CAREER SOMETIMES SHE WRESTED HELP FROM UNWILLING HANDS THE ENERGY WITH WHICH YOU OFTEN SAY THAT YOU DETEST HOUSEKEEPING STOWE WROTE TO HER ELDEST DAUGHTERS THAT YOU HATE ACCOUNTS & CANT KEEP THEM THAT YOU DON'T LIKE TO WRITE LETTERS & CANT WRITE THEM THAT YOU HATE SEWING THAT YOU CANT TAKE CARE OF SICK PEOPLE ALL THESE LEAVE A LOAD UPON ME WHICH IF YOU WERE DIFFERENTLY INCLINED YOU MIGHT TAKE OFF STOWE BEGAN WRITING TO MAKE MONEY IN A HOUSEHOLD THAT JUST SCRAPED BY ON CALVIN'S SMALL TEACHING SALARY BUT SOON HER CAREER BECAME THE FOCUS OF HER LIFE SHE SPENT AT LEAST THREE HOURS A DAY WRITING IN A ROOM OF HER OWN NEGOTIATED HER OWN CONTRACTS HOUNDED PUBLISHERS ABOUT PUBLICITY UNDERTOOK LECTURE TOURS AND SUCCEEDED IN MAKING HER NAME A HOUSEHOLD WORD SHE LOVED ADULATION AND TOOK PRIDE IN HER ABILITY TO COMPETE IN A MAN'S WORLD IF HER FIRST EARNINGS WENT AS SHE DISCLOSED TO BUY A FEATHERBED SOON SHE WAS BUYING HOUSES A LARGE STONE CABIN IN ANDOVER MASS AN EIGHTGABLED ITALIANATE MANSION IN HARTFORD CONN A WINTER RETREAT IN MANDARIN FLA HER ACHIEVEMENTS WERE EXTRAORDINARY FOR A WOMAN OF HER TIME ALTHOUGH MS HEDRICK TELLS US THAT STOWE BECAME THE SINGLE MOST POWERFUL VOICE ON BEHALF OF THE SLAVE AND A SOUGHTAFTER SPEAKER ON WOMEN'S RIGHTS STOWE DEFIES DEFINITION AS A FEMINIST SUFFRAGIST ABOLITIONIST SHE SIMPLY DOES NOT FIT ANY OF THE MOLDS INTO WHICH WE SOMETIMES PRESS HISTORICAL FIGURES AND MS HEDRICK WISELY DOES NOT TRY TO RECONCILE OR RATIONALIZE HER SUBJECT'S COMPLEXITIES INSTEAD SHE HELPS US TO UNDERSTAND THOSE CONTRADICTIONS BY LOCATING STOWE WITHIN THE CULTURAL CONTEXT OF HER TIME AND IN DOING SO GIVES US AN INDELIBLE PORTRAIT OF 19THCENTURY AMERICA MS SIMON IS DIRECTOR OF THE WRITING CENTER AT HARVARD UNIVERSITY 9403220080 940322 LEISURE & ARTS DOCTOR AUTHOR HUNK ALL ROLED INTO ONE BY JOANNE KAUFMAN NEW YORK A YOUNG WOMAN RECENTLY CALLED RANDOM HOUSE PLEADING FOR A SET OF THE GALLEYS OF ETHAN CANIN'S THE PALACE THIEF IF NO GALLEYS WERE AVAILABLE OF THIS SECOND COLLECTION OF STORIES BY THE CRITICALLY ACCLAIMED BESTSELLING AUTHOR OF EMPEROR OF THE AIR 1988 THEN HOW ABOUT AN ADVANCE BOUND COPY OF THE BOOK OR A PRESS RELEASE OR MAYBE SHE ADDED HOPEFULLY A TOENAIL CLIPPING OR A HAIR FOLLICLE MR CANIN IS 33 YEARS OLD AND A HUNK IN THE ESTIMATION OF MANY BOOKISH YOUNG WOMEN WHO DON'T KNOW THAT HE'S GETTING MARRIED IN JULY AND WHO PACKED THE HOUSE FOR A RECENT READING HERE CRITICS WHO MAY OR MAY NOT FEEL THE SAME PRIMAL URGE CALL MR CANIN A WRITER OF TREMENDOUS TALENT THE REAL THING AND GUILTY BEYOND A REASONABLE DOUBT OF BRILLIANCE STILL OTHERS JUST CALL HIM DOC BEFORE HE GRADUATED FROM HARVARD MEDICAL SCHOOL HE HAS A BA FROM STANFORD AND AN MFA FROM THE IOWA WRITERS' WORKSHOP MR CANIN PUBLISHED EMPEROR OF THE AIR A SHORTSTORY COLLECTION THAT FETCHED RAVE REVIEWS AND THE HOUGHTON MIFFLIN FELLOWSHIP A 2500 GRANT PREVIOUSLY WON BY PHILIP ROTH AND ROBERT PENN WARREN AMONG OTHERS DURING THE FIVEYEAR PAUSE MR CANIN PERMITTED HIMSELF BETWEEN MED SCHOOL AND A RESIDENCY IN INTERNAL MEDICINE HE WROTE THE GENERALLY WELLRECEIVED NOVEL BLUE RIVER TAUGHT WRITING AT THE UNIVERSITY OF MICHIGAN THE UNIVERSITY OF IOWA AND SAN FRANCISCO STATE AND POLISHED OFF THE PALACE THIEF THAT WAS MY CHALLENGE TO MYSELF TO WRITE A REGULAR STORY THAT SOUNDED LIKE A TRUE STORY AND THAT WOULD HOLD UP TO SECOND AND THIRD READING THAT PRETTY MUCH DEPENDS ON WHETHER MR CANIN IS AT LARGE OR FAR MORE LIKELY THESE DAYS ON CALL AT SAN FRANCISCO GENERAL OR THE LOCAL VA HOSPITAL IT'S PRETTY MISERABLE TIMEWISE I WORK BETWEEN 80 AND 115 HOURS A WEEK I STOPPED WRITING IN MAY WHEN I BEGAN MY INTERNSHIP AND I WON'T BE ABLE TO START AGAIN UNTIL NEXT MONTH THAT IS EVIDENTLY JUST FINE WITH MR CANIN SINCE HE INSISTS HE FINDS MEDICINE HOWEVER GRUELING PHYSICALLY TO BE A LOT LESS CHALLENGING A CAREER PATH THAN LITERATURE IF YOU CAN GET YOURSELF OUT OF BED AT FIVE IN THE MORNING YOU CAN DO IT HE SAYS YOU JUST SHOW UP AND DO IT AND YOU CAN EASILY BELIEVE YOU CAN DO IT AGAIN THE NEXT DAY BUT WHEN HE FINISHES A STORY LIKE MANY WRITERS MR CANIN HAS THE FEELING THAT IT IS GOING TO BE HIS LAST UNLIKE MANY WRITERS HOWEVER MR CANIN SEEMS TO SHAKE THE FEELING LIKE A 24HOUR VIRUS SOMEBODY SAYS SOMETHING OR SOMEONE OPENS A DOOR A CERTAIN WAY AND YOU THINK OF A TRILOGY OF NOVELS MR CANIN WHO IS NOT THAT MANY YEARS AWAY FROM BOYISH GAWKINESS HAS THE QUITE INNOCENT ARROGANCE OF THE CHILD PRODIGY HOWEVER UNPLEASANT HE CLAIMS TO FIND THE PROCESS OF COMPOSITION HE SAYS HE RARELY HAS TO REWRITE HE TAKES SOME PAINS TO DIFFERENTIATE THE CONTENTS OF THE PALACE THIEF LONG STORIES FROM SHORT FICTION TO ME SHORT STORIES SEEM TOO EASY THEY'RE KIND OF A TRICK YOU NEED ONE GOOD LINE 10 PAGES OF PASSABLE DIALOGUE AND THEN ONE GOOD MOMENT AND YOU HAVE THE STORY THAT WOULD NO DOUBT COME AS A SURPRISE TO RAYMOND CARVER AND WILLIAM TREVOR MENTION THE NAME JOHN GRISHAM AND MR CANIN ALLOWS THAT HE TOO PLANS TO WRITE A THRILLER NEXT YEAR IN FACT BEGAN PLOTTING IT OUT THIS VERY MORNING IT WILL DESTROY MY REPUTATION HE SAYS EXPRESS AMAZEMENT THAT MR CANIN IS ABLE TO JUGGLE TWO HIGHLY DEMANDING CAREERS TO SAY NOTHING OF DOING WITH HIS OWN TWO HANDS THE RENOVATIONS ON HIS 1903 EDWARDIAN HOUSE IN SAN FRANCISCO AND HE WILL CONFIDE THAT HE IS PLANNING TO BRANCH OUT I'D LIKE TO DO SOMETHING ELSE MAYBE A THIRD CAREER YOU TELL ME WHICH CAREER I'M THINKING OF JOURNALISM IF THE TENDENCY TO ASK QUESTIONS IS ANY INDICATION MR CANIN WILL DO JUST FINE WHAT STORY IN THE COLLECTION DID YOU LIKE BEST HE WANTS TO KNOW I HATE TO SAY IT BUT I'M EASILY SWAYED WHATEVER ONE YOU SAY IS YOUR FAVORITE WILL BE MY FAVORITE TOO THE YOUNGER OF TWO BOYS MR CANIN WAS BORN IN ANN ARBOR MICH AND GREW UP IN OBERLIN OHIO PHILADELPHIA AND SAN FRANCISCO WHERE HIS VIOLINIST FATHER TAUGHT AND PERFORMED HIS OWN RAREFIED UPBRINGING PARALLELS THAT OF THE NARRATOR IN PERHAPS THE MOST HEARTSTOPPING STORY IN THIS NEW COLLECTION BATORSAG AND SZERELEM LIKE THE FICTIONAL FAMILY THE CANINS HAD NO TELEVISION MR CANIN AND HIS BROTHER WERE ENCOURAGED IN SUCH CREATIVE PURSUITS AS MAKING THEIR OWN TOYS HIS FIRST INTENSE EXPOSURE TO CREATIVE WRITING CAME IN HIGH SCHOOL BY WAY OF HIS TEACHER DANIELLE STEEL THEN JUST BEGINNING HER CAREER AS A COLOSSUS OF THE ROMANCE NOVEL SHE MADE US WRITE EVERY SINGLE DAY RECALLS MR CANIN SHE REALLY LIKED MY WRITING WHICH WAS THE FIRST STROKES I EVER GOT SHE WROTE ON MY MIDTERM EVALUATION SOMETHING ABOUT THAT I FOOLED AROUND TOO MUCH AND SHE HOPED I WOULD USE MY WRITING WITH SOME SERIOUSNESS SOME DAY DECIDING TO BECOME A DOCTOR HE SAYS WAS A FAILURE OF IMAGINATION I WAS A JEWISH KID IT SEEMED LIKE A REASONABLE THING YOU'RE WORKING WITH PEOPLE AND YOU'RE NOT TRYING TO SCREW THEM LIKE YOU WOULD IN LAW THE ONLY OTHER JOB I COULD THINK OF IT SEEMED LIKE THE SAFEST THING I COULD DO SAFETY IS ALMOST AS BIG AN ISSUE WITH MR CANIN AS IT IS WITH HIS CHARACTERS PEOPLE WHO ARE OFTEN TORN BETWEEN THE CONVENTIONAL AND THE WILD SIDE INDEED IT WAS MR CANIN'S CONCERN ABOUT HIS LOW OUTPUT AT IOWA HE WROTE ONLY TWO STORIES DURING HIS TWO YEARS ON SCHOLARSHIP THAT HELPED PROPEL HIM TOWARD MEDICAL SCHOOL BUT I HAVE MORE CONFIDENCE NOW HE SAYS NOW I'M MORE SCARED OF KNOWING MY FUTURE THAN NOT KNOWING IT MR CANIN WHO VIEWS HIMSELF AS BOTH A GOOD DOCTOR HE LISTENS WELL AND A BAD DOCTOR HE'S NOT UP TO SPEED ON SOME DISEASES DOES KNOW A BIT ABOUT HIS FUTURE HE'LL EVENTUALLY CONFINE HIS MEDICAL PRACTICE TO 10 OR 20 HOURS A WEEK IN A CLINIC AND HE'LL CONTINUE TO WRITE HOWEVER TORTURED AND LONELY THE PROCESS HOWEVER NERVERACKING IT IS TO WAIT FOR REVIEWS AND TO CHECK HIS STANDING ON THE BESTSELLER LIST YOU'RE TRYING TO REACH THIS BRASS RING AND GRAB IT AND PLUCK IT HE SAYS IF YOU'RE NO 8 ON THE LIST YOU WANT TO KNOW WHY MICHAEL CRICHTON IS NO 3 UNLIKE MR CANIN MR CRICHTON DID NOT GO ON WITH MEDICINE AFTER HARVARD BUT THE AUTHORIAL SUCCESS OF THESE TWO HAS CAUSED AN OUTBREAK OF CREATIVE WRITING AMONG MEDICS EVERY DOCTOR I KNOW IS WRITING A BOOK SAYS MR CANIN THEY'RE CALLING ME AND WANT TO SHOW ME THEIR MANUSCRIPTS AT THE END OF DINNER JUST ABOUT ANYBODY I'VE EVER TALKED TO WOULD GIVE UP HIS JOB IF HE WERE ASSURED OF BEING A SUCCESSFUL WRITER EXCEPT FOR WRITERS THEY'D GIVE UP THEIR JOBS TO BECOME DOCTORS MS KAUFMAN IS A WRITER IN NEW YORK 9403220079 940303 THE FORGOTTEN WAR BY FELIX CORLEY STEPANAKERT NAGORNOKARABAKH LAST WEEK MARKED THE SIXTH ANNIVERSARY OF THE VOTE BY THE SUPREME SOVIET OF NAGORNOKARABAKH TO LEAVE AZERBAIJAN'S JURISDICTION AND JOIN ARMENIA AT THE TIME THERE WAS MUCH REJOICING ON THE STREETS OF STEPANAKERT THE ARMENIANS OF KARABAKH 80 OF THE ENCLAVE'S POPULATION BELIEVED THEIR LONG YEARNEDFOR DAY OF LIBERATION HAD COME BUT THE EUPHORIA WAS SHORTLIVED ON FEB 27 1988 AZERIS IN THE CITY OF SUMGAIT ON THE CASPIAN SEA RESPONDED TO THE KARABAKH VOTE BY TURNING ON THEIR ARMENIAN NEIGHBORS DOZENS WERE KILLED AS AZERIS RAMPAGED THROUGH THE ARMENIAN QUARTER THE FEBRUARY VOTE WAS REMEMBERED LAST WEEK IN STEPANAKERT WITH A CONCERT OF MUSIC AND POETRY BUT CELEBRATIONS WERE SUBDUED IN THE SIX YEARS SINCE THE PARLIAMENTARY VOTE THOUSANDS OF KARABAKH ARMENIANS AND EVEN MORE AZERIS HAVE BEEN KILLED IN A BITTER AND LARGELY FORGOTTEN WAR DESPITE THE ODDS 180000 ARMENIANS PITTED AGAINST SEVEN MILLION AZERIS THE PEOPLE OF KARABAKH HAVE HELD OFF THE SOVIET ARMY AND THE FORCES OF THE NEW AZERBAIJANI REPUBLIC THEY NOW CONTROL ABOUT 90 OF THE TRADITIONALLY ARMENIAN LANDS IN KARABAKH AS WELL AS LARGE SWATHS OF AZERBAIJANI LAND AROUND THE ENCLAVE ONLY THE NORTHEASTERN HALF OF THE MARDAKERT REGION AND THE NORTHERNMOST SHAUMYAN REGION REMAIN IN AZERI HANDS SINCE MIDDECEMBER THE AZERIS HAVE REDOUBLED THEIR EFFORTS AT THE FRONT PRESIDENT HEIDAR ALIEV HAS TIGHTENED INTERNAL DISCIPLINE RECRUITED THOUSANDS OF MUJAHEDEEN FIGHTERS FROM AFGHANISTAN AS WELL AS MERCENARIES FROM IRAN AND ELSEWHERE AND BROUGHT IN EVEN MORE TURKISH OFFICERS TO ORGANIZE HIS ARMY IN HIS TELEVISED NEW YEAR'S ADDRESS MR ALIEV PLEDGED THAT THIS YEAR WOULD SEE THE LIBERATION OF ALL OCCUPIED AZERBAIJANI TERRITORY SINCE THEN HIS OFFENSIVE HAS BOGGED DOWN THE AZERI DEATH RATE IS REPORTED TO BE FIVE TIMES THAT OF THE ARMENIANS AND SO HIGH THAT THEY DO NOT EVEN COLLECT THE BODIES FOR FEAR OF HOW THE AZERI POPULATION WOULD RESPOND TO THE FIGURES ALL THIS HAS DONE LITTLE TO DAMP THE AZERBAIJANI GOVERNMENT'S ARDOR NOT SURPRISINGLY THE GOVERNMENT OF THE NAGORNOKARABAKH REPUBLIC IS SKEPTICAL ABOUT THE PEACE TALKS BEING CONDUCTED UNDER THE AUSPICES OF THE CONFERENCE ON SECURITY AND COOPERATION IN EUROPE AND SEPARATELY THE RUSSIAN GOVERNMENT ASKED WHICH OF THE PEACE PLANS IS MORE LIKELY TO BRING PEACE ROBERT KOCHARIAN CHAIRMAN OF KARABAKH'S RULING STATE DEFENSE COMMITTEE TOLD ME AT PRESENT NO PLAN THE LATEST RUSSIANBROKERED CEASEFIRE WENT INTO EFFECT MONDAY BUT THERE IS LITTLE HOPE IN STEPANAKERT THAT IT WILL ENDURE THE KARABAKH GOVERNMENT KNOWS THAT ONLY ITS FORCES CAN PROVIDE SOME GUARANTEE OF SECURITY FOR ITS PEOPLE IT WOULD BE PREPARED TO EXCHANGE LAND FOR PEACE BUT ONLY IN A PHASED WITHDRAWAL EVEN THEN KARABAKH WOULD NOT GIVE BACK THE LACHIN REGION WHICH LINKS KARABAKH WITH ARMENIA AND IS THE CORRIDOR THROUGH WHICH EVERYTHING FROM WEAPONS TO FOOD PASSES THE KARABAKH GOVERNMENT WOULD LIKEWISE ONLY CONTEMPLATE THE RETURN OF THE KELBAJAR REGION TO THE NORTH OF LACHIN AS A DEMILITARIZED ZONE THUS THE SITUATION IS AT A STALEMATE SO LONG AS KARABAKH'S FORCES CONTROL TERRITORY IN AZERBAIJAN ITSELF THE FLEDGLING REPUBLIC IS UNLIKELY TO GAIN INTERNATIONAL RECOGNITION OUR REFERENDUM GAVE AN INDISPUTABLE MANDATE IN FAVOR OF THE INDEPENDENCE OF THE NAGORNOKARABAKH REPUBLIC MR KOCHARIAN INSISTS BUT HE IS AWARE THAT INTERNATIONAL RECOGNITION IS A LONG PROCESS INSTEAD THE REPUBLIC IS DEVOTING ITSELF TO BUILDING UP ITS INSTITUTIONS MOST CRUCIALLY IT HAS TURNED ITS AUTONOMOUS BANDS OF PARTISANS INTO A REGULAR ARMY THIS CHANGE IS NOTICEABLE AT THE FRONT WHERE COMMANDERS NO LONGER VIEW THE WAR IN TERMS OF DEFENDING THEIR REGION BUT IN TERMS OF DEFENDING KARABAKH AS A WHOLE CONSCRIPTION FOR MEN BETWEEN THE AGES OF 18 AND 45 IS UNIVERSAL THE GOVERNMENT IN THE HANDS OF THE STATE DEFENSE COMMITTEE HAS ESTABLISHED A NUMBER OF PERFUNCTORY MINISTRIES THE FOREIGN MINISTRY INSISTS VISITORS ACQUIRE VISAS AT A COST OF 10 ALTHOUGH THE VISAS PROVOKED DERISION AT PASSPORT CONTROL IN YEREVAN MR KOCHARIAN HAS TOURED EUROPEAN CAPITALS TO PRESS THEIR GOVERNMENT'S CASE FOR RECOGNITION AND KARABAKH'S CENTRAL BANK HAS EVEN SOUGHT CREDIT GUARANTEES OF MILLIONS OF DOLLARS FROM THE INTERNATIONAL COMMUNITY DISCIPLINE BOTH AT THE FRONT AND WITHIN THE ENCLAVE IS STRONG KARABAKH IS THE ONLY PLACE IN THE FORMER SOVIET UNION WHERE THERE IS STILL DISCIPLINE ONE ARMENIAN TOLD ME APPROVINGLY INDEED WANDERING THE STREETS OF STEPANAKERT GIVES ONE THE UNCANNY FEELING OF BEING IN A TIME WARP MUCH OF THE PAST SIX YEARS' DEVASTATION HAS BEEN CLEANED UP THERE IS ELECTRICITY ALMOST AROUND THE CLOCK AND MOST OF THE POPULATION RUSHES TO AND FROM WORK THE STREETS ARE EVEN SWEPT ONLY OCCASIONAL AIR RAIDS BANNERS IN MEMORY OF THE FIGHTERS WHO HAVE DIED AND THE TOTAL ABSENCE OF YOUNG AND MIDDLEAGED MEN BELIE THE IMAGE OF NORMALITY ON KARABAKH'S FRONT LINE IT IS A DIFFERENT PICTURE TOWNS AND VILLAGES LIE IN RUINS OCCUPIED AZERBAIJANI CITIES LIKE AGDAM AND FIZULI ARE EERIE DESOLATE WRECKS BUT THE FIGHTING SEEMS LIKELY TO CONTINUE THE CRIPPLING LOSSES ON BOTH SIDES HAVE SO FAR DAMPED THE ARDOR OF NEITHER BOTH ARE BEING STRENGTHENED BY SOLDIERS FROM OUTSIDE THE KARABAKH ARMY BY FIGHTERS FROM ARMENIA AND THE ARMENIAN DIASPORA RUSSIA IS SUPPLYING BOTH SIDES AND AZERBAIJAN IS BUYING WEAPONS FROM OR BEING GIVEN WEAPONS BY TURKEY CHINA AND ISRAEL THE KARABAKH ARMY IS SUPPLEMENTING ITS RUSSIAN SUPPLIES WITH MATERIEL LIBERATED FROM THE AZERIS HAD THE ARMENIANS OF KARABAKH KNOWN BACK IN 1988 WHAT SUFFERING THEY WOULD HAVE TO ENDURE TO ACHIEVE SELFDETERMINATION WOULD THEY STILL HAVE BEGUN THEIR MOVEMENT THE UNEQUIVOCAL ANSWER EVERYONE GIVES FROM MR KOCHARIAN DOWN IS YES HAD WE NOT DONE SO MR KOCHARIAN SAYS OUR SITUATION TODAY WOULD HAVE BEEN EVEN MORE PITIFUL NOT ONE SIMILAR SITUATION IN THE FORMER SOVIET UNION HAS ESCAPED ARMED CONFLICT AND THE FACT THAT HERE THE PROBLEM STARTED EARLIER IN 1988 ENABLED US TO GET ORGANIZED GOD KNOWS HOW THE SITUATION WOULD HAVE DEVELOPED IF WE HAD NOT BEEN PREPARED IN THIS WAY FOR IT THE IRRECONCILABILITY OF THE TWO SIDES' DEMANDS MAKES A PEACE DEAL IN THE NEAR FUTURE DOUBTFUL THE MOST THAT CAN BE HOPED FOR AT PRESENT IS AN EXHAUSTED STALEMATE MR CORLEY HAS JUST RETURNED FROM HIS SIXTH VISIT TO NAGORNOKARABAKH SEE RELATED LETTER LETTERS TO THE EDITOR THE WAR THAT SHOULDN'T BE WSJ MARCH 22 1994 9403030075 YY94 MM03 9403220077 940322 SPAIN'S JANUARY TRADE DEFICIT MADRID SPAIN'S MERCHANDISE TRADE DEFICIT ON A CUSTOMS BASIS SHRANK 47 TO 8969 BILLION PESETAS 6446 MILLION IN JANUARY FROM 16891 BILLION PESETAS IN JANUARY 1993 THE FINANCE MINISTRY SAID THE JANUARY TRADE DEFICIT WAS 60 LOWER THAN THE DECEMBER SHORTFALL OF 22180 BILLION PESETAS IMPORTS IN JANUARY CLIMBED 24 TO 77638 BILLION PESETAS FROM 62432 BILLION PESETAS IN JANUARY 1993 WHILE EXPORTS SURGED 51 TO 68669 BILLION PESETAS FROM 45541 BILLION PESETAS IN THE SAME PERIOD 9403220074 940322 TRIZEC BEGINS TALKS WITH OUTSIDE PARTY FOR CAPITAL OUTLAY CALGARY ALBERTA TRIZEC CORP AFTER HITTING AN IMPASSE IN RESTRUCTURING TALKS WITH SENIOR CREDITORS SAID IT IS NEGOTIATING WITH AN OUTSIDE PARTY TO INVEST 600 MILLION CANADIAN DOLLARS US438 MILLION OF FRESH CAPITAL IN THE COMPANY THE REALESTATE CONCERN WHICH IS ATTEMPTING TO RESTRUCTURE C19 BILLION OF DEBT SAID IT OBTAINED A CANADIAN COURT ORDER THAT BLOCKS CREDITORS FROM FORCING REPAYMENT OF THEIR LOANS WHILE THE COMPANY NEGOTIATES WITH THE UNIDENTIFIED POTENTIAL INVESTOR TRIZEC SAID IT SOUGHT THE COURT ORDER WHICH REMAINS IN EFFECT UNTIL THE END OF THE MONTH AFTER HOLDERS OF ITS SENIOR DEBENTURES DEMANDED REPAYMENT OF THEIR DEBT OVER THE WEEKEND THE POTENTIAL INVESTMENT WHICH TRIZEC SAID IS DOWN TO FINAL NEGOTIATIONS WOULD ALLOW THE COMPANY TO SWEETEN ITS CURRENT RESTRUCTURING PROPOSAL UNDER THE CURRENT PLAN SENIOR DEBENTURE HOLDERS WHO ARE OWED C12 BILLION WOULD GET A 49 EQUITY STAKE IN THE COMPANY A LEVEL THAT THE CREDITOR GROUP CONSIDERS TOO LOW TRIZEC SAID PART OF THE C600 MILLION INVESTMENT WOULD BE USED TO OFFER SOME CASH TO THE SENIOR CREDITORS THE REST OF THE INVESTMENT WOULD BE USED TO STRENGTHEN THE COMPANY'S CAPITAL BASE TRIZEC SAID IT RECEIVED INQUIRIES FROM A NUMBER OF SOPHISTICATED INVESTORS INTERESTED IN ACQUIRING AN EQUITY STAKE IN THE COMPANY TRIZEC OWNS THE HAHN CO OF SAN DIEGO WHICH OWNS AND DEVELOPS REGIONAL SHOPPING MALLS TRIZEC ALSO HAS INTERESTS IN PRIME OFFICE PROPERTIES IN THE US AND CANADA THE COMPANY IS CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN HOWEVER THE FAMILY'S OWNERSHIP STAKE WOULD DROP TO JUST 7 UNDER TRIZEC'S CURRENT RESTRUCTURING PLAN NEWS OF THE POTENTIAL INVESTMENT GAVE A LIFT TO THE PRICE OF THE SENIOR DEBENTURES ON SECONDARY MARKETS BDS SECURITIES A NEW YORK DISTRESSEDSECURITY TRADING CONCERN SAID THE DEBENTURES WERE QUOTED YESTERDAY AFTERNOON AT 88 CENTS ON THE DOLLAR UP ABOUT FOUR CENTS FROM FRIDAY AT THE BEGINNING OF THE YEAR THE DEBENTURES TRADED FOR ABOUT 70 CENTS ON THE DOLLAR 9403220073 940322 PEPPERAND SALT THAT MY ATTENTION IS CAUGHT IN WHAT COULD BE CALLED REVERSE 9403220072 940322 INTERNATIONAL US TIRE VENTURES TRAVEL ROUGH ROAD CONTINENTAL PIRELLI TRY TO TURN AROUND TROUBLED UNITS BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COMPETING IN THE CUTTHROAT US TIRE BUSINESS IS TOUGH EVEN FOR THE WORLD'S TIREMAKING GIANTS FOR MIDSIZE PRODUCERS IT CAN BE DOWNRIGHT AGONIZING AS GERMANY'S CONTINENTAL AG AND ITALY'S PIRELLI SPA ARE DISCOVERING PUSHING TO BECOME GLOBAL PLAYERS BOTH ACQUIRED US TIRE MAKERS IN THE LATE 1980S AND BOTH HAVE SUNK INTO REPEATED EXPENSIVE RESTRUCTURING CONTINENTAL THE WORLD'S FOURTHLARGEST TIRE MAKER BOUGHT WHAT IS NOW GENERAL TIRE INC FOR 628 MILLION IT HAS SINCE PUMPED AN ADDITIONAL 750 MILLION INTO ITS US PRIZE PIRELLI NO 5 IN THE WORLD ACQUIRED ARMSTRONG TIRE CORP FOR 196 MILLION AND HAS INJECTED AN EXTRA 120 MILLION BOTH US SUBSIDIARIES CONTINUE TO LOSE MONEY CONTINENTAL NOW SAYS ITS PRIME GOAL WORLDWIDE IS TO REFORM ITS US UNIT THE FOURTHLARGEST US PRODUCER SOME ANALYSTS AND GENERAL'S OWN PRESIDENT ALAN OCKENE THINK THEY KNOW HOW TO HELP BOTH COMPANIES FORM AN ALLIANCE BETWEEN GENERAL AND THE SMALLER PIRELLI UNIT KNOWN AS PIRELLI ARMSTRONG TIRE CORP BUT THAT IDEA WHICH THE TWO GROUPS HAVE DISCUSSED AT LEAST TWICE MOST RECENTLY A YEAR AGO ISN'T ONE THAT THE TWO EUROPEAN PARENTS ARE READY TO DISCUSS AGAIN GENERAL'S MR OCKENE SAYS AN ALLIANCE ALSO COULD INCLUDE TOYO TIRE & RUBBER CO AND YOKOHAMA RUBBER CO OF JAPAN WITH WHICH GENERAL HAS A JOINTVENTURE TRUCK TIRE PLANT IN ILLINOIS I'VE ALWAYS FELT THAT IF YOU PUT THOSE ELEMENTS TOGETHER YOU GET A COMPANY THAT BECOMES A BIGFOUR COMPANY SAYS MR OCKENE BUT HE SAYS THERE ISN'T ANY HURRY AND ADDS THAT IS A VERY PERSONAL VIEW NOTHING IS GOING ON THERE AREN'T ANY DISCUSSIONS ABOUT THIS ON THE CONTINENTAL BOARD A BIG IMPEDIMENT IS THE BITTER MEMORY OF PIRELLI'S FAILED UNFRIENDLY 1990 BID FOR CONTINENTAL WHICH LED TO MANAGEMENT SHAKEUPS AT BOTH COMPANIES PIRELLI'S WORLDWIDE TIRE BUSINESS FELL INTO REPEATED ANNUAL LOSSES EVERY YEAR BEGINNING IN 1991 CONTINENTAL ON THE OTHER HAND HAS REMAINED PROFITABLE WORLDWIDE EXCEPT FOR 1991 GIUSEPPE BENCINI HEAD OF PIRELLI'S TIRE BUSINESS NOW SAYS PIRELLI HAS GOT A MORE THAN SUFFICIENT CRITICAL MASS AND NO LONGER SEEKS RAPID GROWTH IN A WRITTEN RESPONSE TO QUESTIONS HE WON'T DISCUSS CONTINENTAL AND DOESN'T RULE OUT TARGETED ALLIANCES OR ACQUISITIONS BUT HE SAYS THE KEY STRATEGIC ISSUE FOR AN INDUSTRIAL PLAYER ISN'T THE SEARCH FOR SIZE FOR ITSELF BUT THE SEARCH FOR PROFITABILITY TIRE INDUSTRY ANALYSTS IN THE US AND EUROPE SAY THAT LEAVES BOTH GENERAL AND PIRELLI ARMSTRONG WITH A PROBLEM PUT SIMPLY BOTH ARE TRYING TO COMPETE ACROSS THE BOARD IN THE US FROM HIGHPERFORMANCE NAMEBRAND TIRES TO THE LOWCOST PRIVATELABEL ONES THAT STORES SELL UNDER THEIR OWN BRAND NAMES THEY ARE GETTING HAMMERED BY BIG RIVALS THAT CAN BETTER WITHSTAND SLIM PROFIT MARGINS AND BY BIG CHAIN STORES THAT DOMINATE SALES AND SQUEEZE SMALLER PRODUCERS ON PRICE CONTINENTAL HASN'T GOT CRITICAL MASS IN THE US SAYS PHILIP AYTON MOTOR INDUSTRY ANALYST AT BARCLAYS DE ZOETE WEDD THE SECURITIES ARM OF LONDON'S BARCLAYS BANK THEY ARE TOO SMALL COMPARED TO MICHELIN AND GOODYEAR ADDS LOTHAR LUBINETZKI OF TRINKAUS & BURKHARDT AG A GERMAN SECURITIES CONCERN THAT BELONGS TO LONDON'S MIDLAND BANK HE SAYS CONTINENTAL AND PIRELLI ONE DAY WILL HAVE TO TALK MERGER AGAIN EFFORTS TO CUT COSTS AND BOOST QUALITY AT BOTH US UNITS HAVE YIELDED SLOW RESULTS MR BENCINI SAYS THAT PIRELLI ARMSTRONG HAS BEEN RESTRUCTURING SINCE 1988 A PROCESS THAT HAS BEEN INTENSIFIED IN THE LAST TWO YEARS PIRELLI WON'T RELEASE US RESULTS BUT SAYS PIRELLI ARMSTRONG POSTED LOSSES LAST YEAR AND EXPECTS TO DO SO AGAIN THIS YEAR IT NOW IS FOCUSING ON HIGHPERFORMANCE HIGHMARGIN PIRELLI TIRES MADE IN THE US IT HAS CLOSED ITS US TRUCK TIRE BUSINESS BUT STILL MAKES ARMSTRONG PRIVATELABEL AND FARM TIRES GENERAL IS MORE FORTHCOMING ABOUT ITS US TROUBLES AND THEY SHOW THE RAVAGES OF THE US MARKET MR OCKENE IS THE THIRD US PRESIDENT SINCE THE 1987 ACQUISITION AND ALL THREE HAVE HAD TROUBLE MEETING GOALS SINCE AUGUST THE COMPANY HAS REPLACED OR ELIMINATED EIGHT OF ITS 19 VICE PRESIDENTS AND REORGANIZED SALES AND MANAGEMENT THE FLUX HELPED DEPRESS SALES FORCING TEMPORARY PRODUCTION SHUTDOWNS THAT COST 15 MILLION TO 20 MILLION LATE LAST YEAR FOLLOWING GENERAL'S REPEATED LOSSES CONTINENTAL LATE LAST YEAR INJECTED 100 MILLION IN FRESH CAPITAL THIS YEAR CONTINENTAL SOUGHT MORE CONTROL IT SENT A GERMAN EXECUTIVE BERND FRANGENBERG TO RUN GENERAL'S LOSSPLAGUED CORE BUSINESS PASSENGER AND LIGHTTRUCK TIRES MR OCKENE INSISTS HE ENCOURAGED THE CHOICE AND SAYS MR FRANGENBERG MAY SUCCEED HIM AFTER HIS PLANNED 1996 RETIREMENT SOME INDUSTRY INSIDERS SAY THEY EXPECT THE GERMANS TO FURTHER CUT US HEADQUARTERS STAFF AND TAKE MORE CONTROL WE HAVE HAD A COMMUNICATION PROBLEM SAYS THOMAS AURICH A SPOKESMAN FOR CONTINENTAL'S TIRE OPERATIONS AT ITS HANNOVER GERMANY HEADQUARTERS PEOPLE DON'T FEEL THEY ARE WORKING TOGETHER THEY NEED TO FEEL THEY ARE PART OF ONE GROUP CONTINENTAL'S STRATEGY FOR GENERAL HAS FLIPFLOPPED SINCE 1987 IN 1988 IT PUSHED GENERAL AWAY FROM PRIVATELABEL PRODUCTION BUT LATER REVERSED COURSE NOW MR FRANGENBERG AGAIN WANTS TO MAKE AND SELL MORE CONTINENTALBRAND TIRES IN THE US AN INTERNAL ARGUMENT ABOUT WHETHER CONTINENTAL WAS INVESTING ENOUGH IN GENERAL AND WHETHER GENERAL WAS PERFORMING PROPERLY HELPED PROVOKE SOME OF LAST YEAR'S STAFF DEPARTURES MR OCKENE SAYS THE COMPANY WILL SAVE MORE THAN 20 MILLION A YEAR AFTER NEGOTIATING NEW LABOR TERMS LAST YEAR HE ALSO SAVED MONEY BY CANCELING PLANS FOR A 12 MILLION TECHNICAL CENTER IN CHARLOTTE NC HE SAYS NEW SELFMANAGED WORK GROUPS HAVE BOOSTED EFFICIENCY AND MORALE AND THAT THE QUALITY PROBLEM IS LICKED BUT THE POOR IMAGE TAKES TIME TO SHAKE HE SAYS AND KEEPS GENERAL FROM COMMANDING ADEQUATE SALES MARGINS QUALITY COMPLAINTS PROVOKED BIG O TIRES INC A BIG STORE CHAIN TO FIRE GENERAL THIS YEAR AS THE MAIN PRODUCER OF ITS PRIVATE LABEL BIG O BRAND TIRES BIG O SELLS HEAVILY IN THE SOUTHWEST WHERE HOT ROADS DESTROY TIRES THAT TOGETHER WITH A STRONG BIG O WARRANTY PUSHED UP TIRE RETURNS BY CUSTOMERS THERE GENERAL SAYS BIG O SAYS GENERAL'S QUALITY WAS IMPROVING BUT TOO LATE TO SAVE THE RELATIONSHIP AFTER PROJECTING A RETURN TO BREAKEVEN LAST YEAR AND MISSING THE MARK MR OCKENE IS PROJECTING IT AGAIN THIS YEAR ANALYSTS SAY HE PROBABLY IS DOING THE RIGHT THINGS BUT THEY PROJECT MORE LOSSES ANDREAS NEUBAUER A TIRE ANALYST AT DEUTSCHE BANK'S DB RESEARCH SAYS CONTINENTAL NEEDS TO CHOOSE WORLDWIDE BETWEEN BECOMING A MARKET GIANT THROUGH MERGER OR SHRINKING TO BECOME A NICHE PLAYER I THINK A DECISION ON STRATEGY WILL COME IN THE NEXT YEAR OR TWO HE ADDS 9403220071 940322 CALIFORNIA FEDERAL RIGHTS OFFER LOS ANGELES CALIFORNIA FEDERAL BANK SAID IT RAISED ABOUT 195 MILLION THROUGH A RIGHTS OFFERING WHICH ENDED MARCH 16 THE THRIFT NOW HAS 466 MILLION SHARES OUTSTANDING UP FROM 25 MILLION PREVIOUSLY THE THRIFT HAS PREVIOUSLY SAID THAT THE OFFERING IS PART OF ITS STRATEGY TO HOLD AND FIX ITSELF INSTEAD OF SELLING ITSELF TO ANOTHER BANK LAST MONTH CALFED REJECTED AN ACQUISITION BID OF 630 MILLION BY CROSSSTATE RIVAL GOLDEN WEST FINANCIAL CORP OAKLAND CALIF 9403220069 940322 FREE MARKETS FOR TELECOM CLIPPER CHIP WON'T STOP INTERNET PIRATES BY BOB METCALFE VANDALS THIEVES AND TEENAGERS ROUTINELY CRACK THE INTERNET AN EXPERIMENTAL COMPUTER NETWORK WITH 20 MILLION USERS WORLDWIDE THEY EAVESDROP AND WHAT THEY HEAR THEY USE TO MASQUERADE AS AUTHORIZED COMPUTER USERS THEY THEN SILENTLY CONNECT TO DISTANT COMPUTERS TAKE CONTROL AND THEREAFTER COPY CHANGE OR DESTROY WHATEVER INFORMATION THEY WANT UNTIL NOW MUCH OF THE INFORMATION INSECURELY STORED ON THE INTERNET HAS BEEN OF LITTLE VALUE ALREADY PUBLIC OR BOTH AND SO NO BIG DEAL BUT SUDDENLY THE INTERNET IS VICE PRESIDENT AL GORE'S FAVORITE EXAMPLE OF A SUPERHIGHWAY IN THE NATIONAL INFORMATION INFRASTRUCTURE MR GORE IS LEADING US TO INVEST BILLIONS IN THIS TO ADVANCE COMMERCE EDUCATION AND HEALTH CARE WHICH ALL INVOLVE A LOT OF INFORMATION THAT IS BOTH VALUABLE AND PRIVATE SO MR GORE HAD TO DO SOMETHING ABOUT INTERNET SECURITY AND HE JUST DID IT'S CALLED CLIPPER UNFORTUNATELY CLIPPER IS A BAD IDEA AS WE SHALL SEE BUT MUCH OF THE INTERNET COMMUNITY OBJECTS TO IT FOR THE WRONG REASONS LAST MONTH MR GORE ANNOUNCED THE GOVERNMENT'S DECISION TO GO AHEAD WITH CLIPPER A NEW US FEDERAL INFORMATION PROCESSING STANDARD FOR DATA ENCRYPTION COMPUTER CHIPS CONTAINING THE SECRET CLIPPER ENCRYPTION ALGORITHM CODENAMED SKIPJACK AT THE NATIONAL SECURITY AGENCY WILL VERY THOROUGHLY SCRAMBLE DATA PACKETS SENT THROUGH THE INTERNET THEREBY PROTECTING THEM FROM UNAUTHORIZED ACCESS CLIPPER CHIPS AT RECEIVING COMPUTERS UNSCRAMBLE PACKETS SO THEY CAN BE READ ONLY BY THEIR INTENDED RECIPIENTS THE US HOWEVER WILL HOLD A SECRET DECRYPTION KEY FOR EACH CLIPPER CHIP MANUFACTURED SO NATIONAL SECURITY AND LAW ENFORCEMENT AGENCIES CAN WIRETAP CLIPPERED CONNECTIONS ON THE INTERNET CLIPPER HAS BEEN GREETED WITH OUTRAGE BY THE COMPUTER PROFESSIONALS FOR SOCIAL RESPONSIBILITY THE AMERICAN CIVIL LIBERTIES UNION AND THE ELECTRONIC FRONTIER FOUNDATION WHOSE COFOUNDER JOHN PERRY BARLOW HAS WRITTEN IN THE APRIL ISSUE OF WIRED MAGAZINE THAT CLIPPER IS A LASTDITCH ATTEMPT BY THE UNITED STATES THE LAST GREAT POWER FROM THE OLD INDUSTRIAL ERA TO ESTABLISH IMPERIAL CONTROL OVER CYBERSPACE COMPUTER PROFESSIONALS FOR SOCIAL RESPONSIBILITY SEEKING TO PROTECT US FROM OUR OWN GOVERNMENT HAS STARTED AN INTERNET PETITION DRIVE AGAINST CLIPPER CLIPPER OUTRAGES THESE ORGANIZATIONS BECAUSE THEY SEE IT AS A DIRECT ATTACK ON THE RIGHTS OF AMERICANS TO PRIVACY WITH CLIPPER CHIPS IN WIDE USE THE NATIONAL SECURITY AGENCY FEDERAL BUREAU OF INVESTIGATION CENTRAL INTELLIGENCE AGENCY SECRET SERVICE BUREAU OF ALCOHOL TOBACCO AND FIREARMS BIG BROTHER WOULD BE ABLE TO READ OUR INTERNET MAIL THIS THREATENS DEMOCRACY AND FREEDOM IN AMERICA THEY SAY AT THE RISK OF AGREEING WITH THE CLINTON ADMINISTRATION I MUST SAY THAT PRIVACY PROTECTION IS THE WRONG REASON TO OPPOSE CLIPPER OUR CONSTITUTION PROSCRIBES ONLY UNREASONABLE SEARCH AND SEIZURE SO OUR RIGHT TO PRIVACY HAS NEVER BEEN ABSOLUTE AFTER OBTAINING A SEARCH WARRANT POSTAL INSPECTORS CAN OPEN YOUR MAIL WHEN THEY SUSPECT DRUG TRAFFICKING FOR EXAMPLE LAW ENFORCEMENT AUTHORITIES CAN GET PERMISSION TO TAP YOUR PHONE AND THERE ARE LAWS ABOUT WHO CAN EAVESDROP AND WHEN I AM AGAINST CLIPPER SIMPLY BECAUSE IT WILL NOT WORK AND IT WILL COST AN UNNECESSARY AMOUNT OF TAX MONEY TO OUTFIT GOVERNMENT COMPUTERS WITH THE CHIPS THE SUCCESS OF CLIPPER WILL DEPEND ON ITS WIDE ADOPTION WHICH IS UNLIKELY AND THE SECRECY OF ITS SKIPJACK ALGORITHM THIS SECRECY WILL MAKE THE CHIP EXPENSIVE AND INFLEXIBLE AND I'M WILLING TO BET SOMEONE WILL FIGURE OUT SKIPJACK EVENTUALLY BESIDES MOST USERS BECAUSE OF LAZINESS EXPENSE OR COMPLACENCY WILL CHOOSE NO ENCRYPTION AT ALL THE FEW THAT DO WILL CHOOSE ALTERNATIVES TO CLIPPER THAT ARE FASTER BETTER AND/OR CHEAPER SUCH AS THOSE IMPLEMENTED IN SOFTWARE EVEN IF THE FEDS INSIST BY LAW THAT EVERYBODY BUILD CLIPPER INTO THEIR COMPUTER AND TELEPHONE HARDWARE WHICH WOULD SEND EVEN ME TO THE ACLU SMART CRIMINALS CAN EASILY GET AROUND CLIPPER BY USING ADDITIONAL ENCRYPTION STUPID CRIMINALS WILL CONTINUE TO DO STUPID THINGS AND GET CAUGHT ON THE DAY THE CLIPPER STANDARD WAS ANNOUNCED I WAS WITH 200 INTERNET SECURITY EXPERTS AT THEIR SYMPOSIUM IN SAN DIEGO THEY DISCUSSED THE WAYS IN WHICH ENCRYPTIONBASED TECHNOLOGIES COULD SOLVE MOST OF THE INTERNET'S SECURITY PROBLEMS AND REPEATEDLY EXPRESSED GREAT FRUSTRATION THAT COMPUTER AND COMMUNICATION COMPANIES AND INTERNET USERS WERE NOT EMBRACING SUCH TECHNOLOGIES ONE EXPERT STOOD UP TO SUGGEST DARKLY THAT IT WOULD PROBABLY TAKE SOME NETWORK TERRORISM TO AWAKEN PEOPLE TO THE SERIOUSNESS OF INTERNET SECURITY PROBLEMS WITHIN AN HOUR OF THAT SUGGESTION THE INTERNET'S COMPUTER EMERGENCY RESPONSE TEAM IN PITTSBURGH REPORTED THAT THE INTERNET HAD AGAIN BEEN CRACKED THIS TIME ON A GRAND SCALE EXPOSING TENS OF THOUSANDS OF COMPUTERS TO UNWELCOME INTRUSION WHAT A COINCIDENCE THAT THE INTERNET SECURITY SYMPOSIUM THE LATEST MAJOR INTERNET SECURITY BREACH AND THE CLIPPER ANNOUNCEMENT ALL HAPPENED WITHIN THE SAME FEW DAYS OR AM I JUST BEING PARANOID THE IMPORTANT THING IS TO GET ON WITH SECURING THE INTERNET SO THAT IT CAN BE COMMERCIALIZED AND THIS IS THREATENED BY GETTING IT OVERLY POLITICIZED SO LET'S CHOOSE THE RIGHT REASON FOR OPPOSING CLIPPER IT JUST WON'T WORK MR METCALFE INVENTED THE ETHERNET LAN TECHNOLOGY IN 1973 FOUNDED 3COM CORP IN 1979 AND IS NOW PUBLISHER OF INFOWORLD A PERSONAL COMPUTER TRADE WEEKLY HE CAN BE REACHED ON THE INTERNET AT BOB METCALFE@INFOWORLDCOM 9403220068 940322 THE ECONOMY A WOMEN'S ISSUE BY WENDY LEE GRAMM MANY WOULD HAVE US BELIEVE THAT THE KEY WOMEN'S ISSUES ARE ABORTION PARENTAL LEAVE AND CHILD CARE ONLY RARELY ARE THE BUDGET TAXES TRADE OR DEREGULATION LISTED AS LEGISLATIVE PRIORITIES FOR WOMEN THE IRONY IS THAT THE ECONOMY IS PROBABLY THE MOST FUNDAMENTAL WOMEN'S ISSUE OF ALL MANY GROUPS SUPPOSEDLY ADDRESSING WOMEN'S ISSUES ALSO GENERALLY SUPPORT GOVERNMENT SOLUTIONS RATHER THAN A PRIVATESECTOR OR FREEMARKET APPROACH THE CONGRESSIONAL CAUCUS FOR WOMEN'S ISSUES IS A GOOD EXAMPLE HIGHLIGHTS FOR THE 1993 LEGISLATIVE SESSION TOUTED MANY PROPOSALS EXPANDING THE ROLE OF GOVERNMENT BUT DIDN'T MENTION BROADER ECONOMIC POLICIES LIKE THE BUDGET OR TAXES HOWEVER IF AN ORGANIZATION WERE REALLY DETERMINED TO ADVANCE THE WELLBEING OF WOMEN THE ECONOMY WOULD BE A TOP PRIORITY WHY BECAUSE A STRONG AND GROWING ECONOMY IS KEY TO WOMEN'S ADVANCEMENT IN SOCIETY WHETHER A WOMAN IS MARRIED OR SINGLE STAYS AT HOME CARING FOR CHILDREN OR WORKS OUTSIDE THE ECONOMY IS MORE IMPORTANT TO HER WELFARE THAN A MULTITUDE OF ONESIZEFITSALL GOVERNMENT PROGRAMS INDEED MANY GOVERNMENT PROGRAMS WORK AGAINST WOMEN BY WEAKENING THE ECONOMY OR CREATING EMPLOYMENT BARRIERS THAT ARE HARMFUL REQUIRING CERTAIN BENEFITS LIKE MATERNITY LEAVE RAISES THE COST OF EMPLOYING WOMEN AND MAY CAUSE MARGINAL COMPANIES TO CLOSE THEIR DOORS AND HIRE NO ONE AT ALL THE HIGHER COSTS MAY MAKE SOME COMPANIES RELUCTANT TO HIRE WOMEN FOR WOMEN WHO WORK OUTSIDE THE HOME A STRONG ECONOMY MEANS EXPANDING DEMAND FOR WORKERS AS THE EXPERIENCED LABOR POOL IS EXHAUSTED BUSINESSES MUST TURN TO THOSE LESS EXPERIENCED WOMEN AND TEENAGERS OFTEN FALL INTO THIS CATEGORY COMPETITION FOR SCARCE HUMAN RESOURCES REQUIRES BUSINESSES TO OFFER HIGHER WAGES AND TO ADOPT SUCH NONTRADITIONAL PRACTICES AS JOBSHARING AND FLEXTIME TO MAKE THE WORK ENVIRONMENT MORE ATTRACTIVE COMPETITION ALSO MAKES DISCRIMINATION GLASS CEILINGS AND OTHER INEFFICIENT WORK PRACTICES ECONOMICALLY UNDESIRABLE THE AVAILABILITY OF ALTERNATIVE JOBS IS THE BEST PROTECTION A PERSON HAS AGAINST UNPLEASANT OR UNFAIR PRACTICES IN THE WORKPLACE EVIDENCE OF THE IMPORTANCE OF A STRONG ECONOMY FOR WOMEN IS FOUND IN EMPLOYMENT FIGURES FOR THE PAST DECADE CIVILIAN EMPLOYMENT INCREASED BY ALMOST 20 MILLION JOBS DURING THE 1980S MORE THAN 60 OF THOSE NEW JOBS WERE FILLED BY WOMEN THE GAP BETWEEN WOMEN'S AND MEN'S EARNINGS ALSO CLOSED SIGNIFICANTLY AND IS NOW LESS THAN 20 FURTHERMORE THE ADVANCES MADE BY WOMEN DURING A STRONG ECONOMY AREN'T LOST QUICKLY DURING A DOWNTURN IN THE PAST TWO RECESSIONS FOR EXAMPLE THE NUMBER OF JOBS HELD BY WOMEN DECLINED BUT FAR LESS THAN THE NUMBER OF JOBS HELD BY MEN BUSINESSES ALSO HAVE RESPONDED TO THE INCREASED NUMBERS OF WOMEN ESPECIALLY THOSE WITH CHILDREN BY INTRODUCING FAMILYFRIENDLY POLICIES THE PUBLICATIONS WORKING MOTHER AND MONEY REPORT THAT SUBSTANTIAL PROGRESS IS BEING MADE TO REDUCE THE CONFLICT BETWEEN JOBS AND THE FAMILY WITH FLEXTIME JOBSHARING AND TELECOMMUTING A 1993 SURVEY OF MORE THAN 1000 COMPANIES FOUND THAT 60 OFFER FLEXIBLE WORK SCHEDULES AND ABOUT ONETHIRD ALLOW JOBSHARING IT IS PREDICTED THAT MORE THAN 80 OF LARGE COMPANIES WILL ALLOW FLEXIBLE WORK SCHEDULES BY THE YEAR 2000 ALL THIS IS HAPPENING BECAUSE BUSINESSES ARE RESPONDING TO MARKET SIGNALS RATHER THAN GOVERNMENT MANDATES THE ADVANTAGE OF THESE MARKET RESPONSES IS A GREATER VARIETY OF INNOVATIVE PRACTICES AND DIFFERING APPROACHES THAT COMPANIES CAN USE TO MEET THEIR SPECIALIZED NEEDS GOVERNMENT'S ONESIZEFITSALL APPROACH CAN STIFLE THE DEVELOPMENT OF NEW IDEAS AND POTENTIALLY REDUCE THE AVAILABILITY OF DIFFERENT OPTIONS FOR WORKERS THIS GOVERNMENTIMPOSED REGIMENTATION IS ESPECIALLY HARMFUL TO WOMEN WOMEN FARE BETTER WHEN THE ECONOMY IS STRONG AND NOT JUST BECAUSE OF THE FAVORABLE EMPLOYMENT OUTLOOK THAT GOES WITH A GROWING ECONOMY THE MANY WOMEN WHO OWN THEIR OWN BUSINESSES ARE AFFECTED BY GENERAL ECONOMIC CONDITIONS WHEN THE ECONOMY IS GROWING THE NUMBER OF SMALL BUSINESSES THAT START UP AND SUCCEED MANY OWNED AND OPERATED BY WOMEN IS MUCH LARGER DURING THE ECONOMIC EXPANSION OF THE '80S WOMENOWNED NONFARM BUSINESSES GREW AT A 126 ANNUAL RATE MORE THAN TWICE THE RATE FOR COMPANIES OWNED BY MEN ABOUT ONETHIRD OF ALL BUSINESSES OR ABOUT SIX AND A HALF MILLION COMPANIES ARE OWNED BY WOMEN THAT NUMBER MAY REACH 40 BY THE TURN OF THE CENTURY WOMEN WHO DO NOT WORK OUTSIDE THE HOME ALSO BENEFIT FROM A STRONG ECONOMY BECAUSE THEIR HUSBANDS HAVE BETTER JOBS AND MORE OPPORTUNITIES THE BENEFICIAL EFFECTS OF ECONOMIC GROWTH ALSO APPLY TO THEIR TEENAGE CHILDREN LOOKING FOR THAT FIRST SUMMER JOB ECONOMIC RESEARCH INDICATES THAT MARRIED WOMEN SPEND LESS TIME WORKING OUTSIDE THE HOME WHEN THEIR SPOUSES EARN MORE SOME RESEARCH ALSO INDICATES THAT MARRIED WOMEN WITH CHILDREN TEND TO SUBSTITUTE WORK IN THE HOME FOR WORK OUTSIDE AS THEIR HUSBANDS' WAGES AND INCOMES INCREASE THAT IS SOME WOMEN ARE CHOOSING TO STAY AT HOME TO PRODUCE HIGHQUALITY AND MORE EXPENSIVE HOME AND CHILD CARE WHEN THEIR FAMILIES CAN AFFORD IT THE HIGHER WAGES OF THE SPOUSE DURING GOOD ECONOMIC TIMES PROVIDES THIS OPPORTUNITY BY ANY OBJECTIVE MEASURE THE WELLBEING OF WOMEN IS MORE DEPENDENT ON ECONOMIC GROWTH AND A STRONG ECONOMY THAN ON TAXPAYERFUNDED PROGRAMS FOR CHILD CARE OR PARENTAL LEAVE THE BEST CHILDCARE PROGRAM IS A GOOD FAMILY INCOME THAT ALLOWS THE FAMILY TO CHOOSE THE BEST NANNY OR CHILD CARE INCLUDING THE OPTION FOR ONE OF THE PARENTS TO STAY HOME THOSE WHO WOULD TRULY ADVOCATE THE CONCERNS OF WOMEN SHOULD BEGIN BY RECOGNIZING A SIMPLE TRUTH A GROWING ECONOMY RAISES THE INCOMES AND INCREASES THE OPPORTUNITIES OF WOMEN IN BOTH THE HOME AND THE WORKPLACE TRANSLATING THIS TRUTH INTO POLICY MEANS SUPPORTING PROGRAMS THAT PROMOTE JOB CREATION AND OPPOSING PROGRAMS THAT STIFLE GROWTH WOMEN'S ADVOCATES SHOULD SUPPORT FREE AND COMPETITIVE INTERNATIONAL MARKETS LOWER CAPITALGAINS TAXES LOWER INCOME TAXES AND FEWER BURDENSOME GOVERNMENT REGULATIONS AND THEY SHOULD OPPOSE GOVERNMENTIMPOSED SOLUTIONS LIKE QUOTAS COMPARABLE WORTH OR SOCIALIZED MEDICINE BECAUSE THESE MEASURES PROMOTE ECONOMIC INEFFICIENCY INCREASE EMPLOYER COSTS AND DECREASE THE DEMAND FOR LABOR DESPITE WHAT LEADING SPOKESPERSONS SAY ABOUT WOMEN'S ISSUES THERE ARE SOME INDICATIONS THAT MANY WOMEN RECOGNIZE WHAT IS TRULY IMPORTANT REPUBLICAN SEN KAY BAILEY HUTCHISON'S 1993 CAMPAIGN STRESSED LIMITED GOVERNMENT LOWER TAXES MORE INDIVIDUAL FREEDOM FREE TRADE AND A STRONG ECONOMY PROMPTING ONE FEMINIST TO LABEL HER A FEMALE IMPERSONATOR THERE ARE ALSO NEW WOMEN'S GROUPS THAT MAKE THE ECONOMY A PRIORITY AND MANY WOMEN SEEM TO AGREE IN 1992 A BROAD SPECTRUM OF WOMEN WERE ASKED WHAT THEY WORRY MOST ABOUT TOPPING THE LIST JOBS AND THE ECONOMY NOT ABORTION NOT PARENTAL LEAVE THESE WOMEN WERE SAYING THE ECONOMY IS THE WOMEN'S ISSUE MS GRAMM AN ECONOMIST IS A NATIONAL ADVISER TO THE INDEPENDENT WOMEN'S FORUM 9403220067 940322 WORLD STOCK MARKETS HIGHFLYING ASIAN MARKETS GROUNDED SO FAR IN 1994 BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE SMALLER ASIAN STOCK MARKETS THAT SOARED IN 1993 ARE REVERSING COURSE SO FAR THIS YEAR AFTER SURGING 59 TO AS MUCH AS 154 LAST YEAR STOCK MARKETS IN HONG KONG INDONESIA MALAYSIA THE PHILIPPINES SINGAPORE TAIWAN AND THAILAND HAVE FALLEN 14 TO 28 SINCE THE START OF 1994 AFTER YESTERDAY'S THUMPING MANY MONEY MANAGERS ARE TRYING TO FIGURE OUT IF THEY ARE IN THE MIDST OF A ROUT OR IF THE SHELLACKING IS JUST WHAT PROFESSIONAL INVESTORS EUPHEMISTICALLY CALL A CORRECTION MOST SOUTHEAST ASIAN MARKETS WILL BE CUT IN HALF FROM THEIR HIGHS AND SOME LIKE HONG KONG COULD FALL 70 FROM THEIR HIGHS PREDICTS MARC FABER HEAD OF A HONG KONG MONEY MANAGEMENT AND ADVISORY FIRM THAT BEARS HIS NAME WE HAD TOO MUCH SPECULATION BEFORE AND PEOPLE WERE BUYING INDISCRIMINATELY NOW SUDDENLY THEY REALIZE THEY MAY HAVE OVERPAID NICK CARN CHIEF INVESTMENT OFFICER AT DRAYCOTT PARTNERS IN LONDON IS ALSO PESSIMISTIC HE REFUSES TO REINVEST IN MARKETS LIKE HONG KONG AND MALAYSIA UNTIL A PROPER BEAR MARKET DEVELOPS WHICH HE CONTENDS WON'T BE IN EVIDENCE UNTIL HONG KONG FALLS ANOTHER 13 TO 19 WHAT WE'RE SEEING AT THE MOMENT IS A CORRECTION AGAINST A BACKGROUND OF QUITE GOOD FUNDAMENTALS HE SAYS A BEAR MARKET INVOLVES A CHANGE IN SENTIMENT TOWARD CHINA HEAVY CAPITAL OUTFLOWS FROM THE COLONY WHICH HASN'T HAPPENED YET AND THE HONG KONG MONETARY AUTHORITIES RAISING INTEREST RATES TO PROTECT THE HONG KONG DOLLAR'S PEG TO THE US DOLLAR BATTERING ASIA'S SMALLER STOCK MARKETS ESPECIALLY THOSE IN SOUTHEAST ASIAARE FEARS OF HIGHER US INTEREST RATES THE CLOUDS OVER CHINA'S ECONOMIC AND POLITICAL ENVIRONMENTS AND A COOLING OF LAST YEAR'S SPECULATIVE BUYING SPREE IN WHICH INVESTORS FROM BANGKOK TO BOSTON THOUGHT ASIAN SHARES WERE THE ROAD TO RICHES IN ADDITION ASIAN STOCK MARKETS ARE GETTING STIFF COMPETITION FROM A RESURGENT JAPANESE STOCK MARKET FOR THE FIRST TIME IN FOUR YEARS YESTERDAY FEARS THAT THE FEDERAL RESERVE WOULD PUSH US INTEREST RATES HIGHER LATER THIS WEEK OR EARLY NEXT SENT HONG KONG SHARES TUMBLING 51 THAT BROUGHT THE HONG KONG STOCK MARKET'S DECLINES TO 9 FOR THE PAST TWO TRADING DAYS AND TO 13 FOR THE PAST FIVE MALAYSIAN STOCKS PLUNGED 53 YESTERDAY THAI EQUITIES 34 AND SINGAPORE STOCKS 32 MOST OTHER STOCK MARKETS IN THE REGION FELL FROM 09 TO 22 TWO EXCEPTIONS WERE INDIA AND TAIWAN WHICH EDGED UP A BIT FROM THEIR HIGHS OF EARLY JANUARY THE HONG KONG STOCK MARKET HAS PLUMMETED 29 THAILAND 31 MALAYSIA 27 THE PHILIPPINES 22 TAIWAN 19 INDONESIA AND SINGAPORE 18 INVESTORS FEAR THAT HIGHER US INTEREST RATES WILL PUSH UP RATES THROUGHOUT ASIA BECAUSE SEVERAL COUNTRIES IN THE REGION EITHER DIRECTLY OR INDIRECTLY TIE THEIR MONETARY POLICIES TO THOSE OF THE US THAT WOULD LESSEN THE APPEAL OF LOCAL STOCKS AND ESPECIALLY HURT BLOATED HONG KONG PROPERTY SHARES WHICH MAKE UP 30 TO 35 OF THE HANG SENG INDEX INVESTORS ALSO WORRY THAT THE HUGE INFUSIONS OF US MONEY THAT HELPED TO DRIVE MOST ASIAN MARKETS TO RECORD HIGHS MIGHT DRY UP TO A LESSER EXTENT THE SAME HOLDS TRUE FOR JAPANESE MONEY BROKERS ON MONDAY SAID SOME FOREIGN MUTUAL FUNDS WERE SELLING SHARES TO MEET EXPECTED REDEMPTIONS FOR THE FIRST THREE QUARTERS OF 1993 AMERICANS PURCHASED A NET 68 BILLION OF SHARES IN ASIA'S SMALLER STOCK MARKETS UP FROM 43 BILLION IN ALL OF 1992 AND UP FROM 1 BILLION IN 1991 ANOTHER CONCERN IS CHINA WHOSE BOOMING ECONOMY HAS BEEN THE JUSTIFICATION FOR MUCH OF THE INVESTMENT IN SUCH MARKETS AS MALAYSIA THAILAND AND HONG KONG THERE ARE FEARS OF INFLATION AND HOW THE CHINESE GOVERNMENT WILL DEAL WITH INFLATION AND THERE'S A CONCERN OF THE DECLINE OF TRADE THAT GOES THROUGH HONG KONG THE CLASSIC MIDDLEMEN WHOSE VOLUMES ARE FALLING OFF SAYS RICHARD COHEN AN EQUITY SALESMAN AT BARING SECURITIES LTD IN SINGAPORE ADDING TO THE GLOOM IS CHINA'S CURRENT BATTLE OVER US THREATS TO WITHDRAW CHINA'S TRADING PRIVILEGES AND ITS BITTER DISPUTE WITH BRITAIN OVER WIDER DEMOCRACY FOR HONG KONG IN ADDITION THERE IS THE UNCERTAINTY OF WHAT WOULD HAPPEN IN CHINA WERE THE PRESENT LEADERSHIP TO PASS FROM THE SCENE SAYS SANJOY CHOWDHURY CHIEF ECONOMIST FOR THE ASIA PACIFIC REGION AT MERRILL LYNCH & CO IN SINGAPORE MOREOVER THIS YEAR'S STOCK MARKET LOSSES ARE A REFLECTION OF THE FACT THAT MANY OF THESE MARKETS WERE EXTREMELY OVERBOUGHT AT THE END OF LAST YEAR AND THE START OF THIS YEAR THIS WAS PARTICULARLY TRUE OF MALAYSIA AND THAILAND MR CHOWDHURY SAYS ANOTHER ELEMENT IS THE STUPIDITY OF THE WHOLE PERFORMANCE GAME ADDS MR FABER IT MEANS THAT IF YOU ARE A PORTFOLIO MANAGER AND YOU THINK THAT HONG KONG AND MALAYSIA ARE OVERVALUED YOU ARE STILL FORCED TO BUY THEM BECAUSE YOU FEAR YOU WILL BE LEFT BEHIND YOUR COMPETITORS LATELY THE PROBLEM HAS BEEN FINDING AN EXIT THE BIG INVESTOR CAN'T GET OUT COMFORTABLY SO YOU HAVE SELL ORDERS OVERHANGING THE MARKET AND INVESTORS NOT WANTING TO BUY AT THE SAME TIME SAYS MR COHEN YOU WOULDN'T WANT TO BUY 100000 SHARES OF A COMPANY WHEN YOU KNOW SOMEONE WANTS TO SELL A MILLION OF THEM MR CARN OF DRAYCOTT PARTNERS SAYS VOLUME HAS BEEN SO THIN MOST PEOPLE ARE LOCKED IN THE BURNING BUILDING MANY INVESTORS WHO HAVE GOTTEN OUT LIKE PETER EVERINGTON A PORTFOLIO MANAGER AT REGENT FINANCIAL SERVICE LTD IN HONG KONG HEADED FOR THE TOKYO STOCK MARKET WHEN THE JAPANESE MARKET PEAKED AT THE END OF 1989 ROUGHLY 90 OF THE FOREIGN INVESTMENT EARMARKED FOR ASIA WAS IN JAPAN AND THE REST WAS ELSEWHERE SAYS MR COHEN OF BARING SECURITIES BY THE END OF 1993 THAT RATIO WAS ALMOST REVERSED HE SAYS NOW WE ARE SEEING THAT PROCESS REVERSED AGAIN WITH THE FLOW OF FUNDS INTO THE JAPANESE MARKET TOKYO MARKETS WERE CLOSED MONDAY FOR A HOLIDAY IN TOKYO TUESDAY THE NIKKEI 225STOCK INDEX FELL 11691 POINTS TO CLOSE THE MORNING SESSION AT 2035254 STILL SOME EXPERTS SEE HOPE FOR ASIA'S OTHER STOCK MARKETS ONCE YOU GET THE NEXT INCREASE IN US SHORTTERM RATES OUT OF THE WAY SENTIMENT WILL START STABILIZING SAYS MR CHOWDHURY OF MERRILL LYNCH I'M INCLINED TO THINK WE ARE VERY CLOSE TO A BOTTOM IN MANY OF THESE MARKETS ASSUMING THAT INCREASE WILL COME AT THE END OF THIS WEEK OR NEXT WEEK BUT INSTEAD OF RELYING EXCLUSIVELY ON EVERINCREASING SUMS OF CASH TO PUSH STOCKS HIGHER AS THEY DID IN 1993 INVESTORS WILL HAVE TO BE MORE SELECTIVE AND PAY CLOSER ATTENTION TO EARNINGS GROWTH AND THE QUALITY OF EARNINGS HE SAYS THE ONE LESSON WE'VE LEARNED IS THAT LIQUIDITY ALONE ISN'T NECESSARILY A SUFFICIENT CONDITION FOR SUSTAINED INCREASES MERRILL'S THREE FAVORITE STOCK MARKETS IN THE REGION ARE SINGAPORE INDONESIA AND SOUTH KOREA ROBERT LLOYD GEORGE HEAD OF LLOYD GEORGE MANAGEMENT HONG KONG LTD ALSO IS CONFIDENT NOTING THAT THE HONG KONG STOCK MARKET HAS GIVEN UP NEARLY HALF THE GAIN IT MADE FROM EARLY DECEMBER 1992 WHEN IT BEGAN ITS LATEST BULL RUNTO ITS RECORD HIGH ON JAN 4 HE SAYS THAT'S A NORMAL TECHNICAL CORRECTION IN A LONGTERM BULL MARKET MR LLOYD GEORGE ALSO CONTENDS THAT WHILE CHINA'S ECONOMIC GROWTH SHOULD SLOW TO 9 THIS YEAR FROM 13 LAST YEAR THERE'S NO REASON TO EXPECT A HARD LANDING EVEN WITH THAT SLOWER GROWTH HE ADDS WE'RE LOOKING FOR 18 CORPORATE EARNINGS GROWTH IN HONG KONG WHICH PUTS THE MARKET AT A PROSPECTIVE PRICEEARNINGS RATIO OF 13 WHICH IS PRETTY CHEAP FURTHERMORE HE SEES RENEWED JAPANESE GROWTH IN THE SECOND HALF OF 1994 GIVING THE REGION A BOOST AS A CONSEQUENCE HE SAYS THAT AT CURRENT LEVELS WE ARE LOOKING FOR BUYING OPPORTUNITIES EUROPEAN STOCKS FELL ON WORRIES ABOUT A POSSIBLE INCREASE IN US INTEREST RATES AHEAD OF A MEETING TODAY BY THE US FEDERAL RESERVE'S POLICYMAKING PANEL WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11520 DOWN 065 REFLECTING LOWER MARKETS IN ALL REGIONS SEMICONDUCTOR STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 22924 UP 093 OR 041 WITH ADVANCED MICRO DEVICES OF THE US POSTING A 38 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 19615 DOWN 1508 OR 71 WITH UNITED PLANTATIONS OF MALAYSIA SLIDING 10 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 201 POINTS TO 3198 NEAR THE DAY'S LOW OF 3197 THE FT 30STOCK INDEX FELL 145 POINTS TO 25282 VOLUME WAS 5063 MILLION SHARES COMPARED WITH 6094 MILLION SHARES A DAY EARLIER INVESTORS WERE INFLUENCED BY BEARISHNESS ON WALL STREET AND NERVOUSNESS ABOUT THE DIRECTION OF US INTEREST RATES WHICH OFFSET ENCOURAGING BRITISH TRADE FIGURES AND A BUOYANT STOCKINDEX FUTURES MARKET ALSO WEIGHING DOWN THE MARKET WERE WEAK WORLD BOND MARKETS AND MONDAY'S HEFTY SLIDE IN HONG KONG EQUITIES IN FRANKFURT THE DAX 30STOCK INDEX SLID 2433 POINTS OR 11 TO 213128 IT FELL ALMOST 1 ON FRIDAY BESIDES THE US INTERESTRATE FEARS INVESTORS WERE UNSETTLED BY ELECTION RESULTS IN NORTHERN GERMANY THAT MAY PORTEND A COALITION OF LEFTWING SOCIAL DEMOCRATS AND ENVIRONMENTALISTS FOR THE NEXT FEDERAL GOVERNMENT IN PARIS STOCKS FELL CUSHIONED BY LATE BUYING AS INVESTORS JUMPED ON WALL STREET'S BEARISH BANDWAGON IN MILAN SHARES INCLUDING THOSE TRADED ELECTRONICALLY TUMBLED 13 IN THIN TRADING AS INITIAL INTEREST IN TELECOMMUNICATIONS STOCKS FAILED TO GENERATE A RALLY AND INVESTORS LIGHTENED POSITIONS AHEAD OF NEXT WEEK'S NATIONAL ELECTIONS IN STOCKHOLM SHARES SKIDDED 11 IN THIN TRADING ON CONCERN ABOUT THE LARGE NUMBER OF NEW SHARE ISSUES COMING TO THE SWEDISH MARKET IN ZURICH STOCKS DROPPED 14 AMID JITTERS ABOUT US AND SWISS INTEREST RATES ROBERT STEINER IN HONG KONG CONTRIBUTED TO THIS ARTICLE 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 9403220066 940322 POLITICS & POLICY BLACKMUN ENJOYS BURST OF FRESH VITALITY AT 85 MULLS ADDITIONAL TERM OR TWO ON HIGH COURT BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AT BLOB'S PARK LAST NOVEMBER AMID SERVINGS OF GERMAN BRATWURST AND BEER ABOUT 100 PARTY GUESTS CHEERED A MAN DANCING WITH HIS WIFE TO THE MUSIC OF A POLKA BAND IT WAS SUPREME COURT JUSTICE HARRY BLACKMUN LOOKING DAPPER IN AN ASCOT AND NAVYBLUE ULTRASUEDE BLAZER AND CELEBRATING HIS 85TH BIRTHDAY THE OLDEST JUSTICE IS DOING SOME LIVELY STEPPING AT THE SUPREME COURT THESE DAYS AS WELL JUSTICE BLACKMUN WHO IN 1987 WAS RUMORED TO BE STEPPING DOWN WHEN A RECURRENCE OF PROSTATE CANCER SENT HIM TO THE MAYO CLINIC HAS HAD A SECOND WIND AND IS CLEARLY ENJOYING THE LIMELIGHT THE MOST NOTABLE EXAMPLE CAME LAST MONTH WHEN HE JOLTED THE LONGRUNNING DEBATE OVER THE DEATH PENALTY WITH AN EMOTIONAL 22PAGE DISSENT STATING THAT AFTER DECADES OF REFLECTION HE COULD NO LONGER VOTE TO UPHOLD ANY EXECUTIONS MR BLACKMUN WHO REGULARLY RECEIVES AND READS A JAILHOUSE NEWSPAPER DECLARED FROM THIS DAY FORWARD I NO LONGER SHALL TINKER WITH THE MACHINERY OF DEATH SOME COURT WATCHERS SEE HIS LONE PASSIONATE DISSENT AGAINST CAPITAL PUNISHMENT AS A SIGN THAT HE IS FINALLY PREPARING TO RETIRE AFTER THIS TERM AFTER 24 YEARS ON THE COURT HE PLAYFULLY TOLD ONE FRIEND OVER BREAKFAST LAST MONTH THAT IT'S ABOUT TIME I GET MY STAMP COLLECTION IN ORDER BUT MR BLACKMUN WHO STILL WORKS 12HOUR DAYS IN FACT IS NOW CONTEMPLATING WHETHER TO STAY ANOTHER TERM OR TWO TO COMPLETE HIS JOURNEY FROM A SEEMINGLY CONSERVATIVE NIXON APPOINTEE TO THE COURT'S MOST OUTSPOKEN LIBERAL WHATEVER HE DECIDES IT'S CLEAR HE IS OUT TO MAKE SURE THAT PEOPLE DON'T FORGET OLD NO 3 HIS SELFDEPRECATING REFERENCE TO HIS HAVING BEEN PRESIDENT NIXON'S THIRD CHOICE TO FILL A COURT VACANCY IN 1970 AFTER THE SENATE REJECTED TWO OTHER NOMINEES MR BLACKMUN'S BURST OF ENERGY IN HIS GOLDEN YEARS CONTRASTS SHARPLY WITH SOME OF HIS FORMER COLLEAGUES THURGOOD MARSHALL COULD BARELY WALK IN HIS LATTER YEARS OF SERVICE AND WATCHED TELEVISION SOAP OPERAS IN HIS CHAMBERS AN AILING WILLIAM DOUGLAS RESISTED PLEAS THAT HE RESIGN AND FOR A TIME SHUTTLED BETWEEN THE COURT AND HIS HOSPITAL BED JUSTICE BLACKMUN DECLINED TO BE INTERVIEWED FOR THIS ARTICLE BUT FRIENDS PORTRAY HIM AS REMARKABLY VIGOROUS AND UPBEAT WHEN A RECENT CONVERSATION TURNED TO AN 1819 SUPREME COURT CASE INVOLVING DARTMOUTH COLLEGE THE JUSTICE SPONTANEOUSLY BROKE INTO THE DARTMOUTH FOOTBALL FIGHT SONG WHICH HE LEARNED ALONG WITH OTHER IVY LEAGUE FAVORITES AS A MEMBER OF THE HARVARD COLLEGE GLEE CLUB 65 YEARS AGO ABOUT HIS ONLY CONCESSION TO AGE IS PUSHING THE STARTING TIME OF HIS MANDATORY LAWCLERK BREAKFAST FROM 730 AM TO 815 HE AND HIS FOUR YOUNG ASSISTANTS DINE EVERY WEEKDAY MORNING AT THE SAME TABLE IN THE COURT'S PUBLIC CAFETERIA LARGELY IGNORED BY THE EARLYBIRD TOURISTS AND COURT POLICEMEN SIPPING COFFEE THE ELDERLY JUSTICE STILL TAKES BREAKS IN LATE AFTERNOON TO PEDAL AN EXERCISE BIKE IN THE COURT'S BASEMENT GYM HE STARTLES COURT STAFFERS A FOURTH HIS AGE BY STRIDING QUICKLY UP AND DOWN THE INTERNAL MARBLE STAIRCASES OF THE CLASSIC CORINTHIANSTYLE BUILDING I'VE NEVER SEEN HIM ON AN ELEVATOR SAYS GEOFFREY KLINEBERG A BLACKMUN LAW CLERK LAST TERM ON THE COURT ASSOCIATES TRACE HIS RENEWED VIGOR TO A VARIETY OF CAUSES ONE IS THE ELECTION OF PRESIDENT CLINTON AND THE TURNING OF THE LEGAL TIDE IN THE ABORTION DEBATE DURING THE BUSH ADMINISTRATION MR BLACKMUN LIKE MANY OTHERS ANTICIPATED THAT ROE VS WADE THE LANDMARK ABORTIONRIGHTS RULING THAT HE WROTE IN 1973 WOULD INEVITABLY BE OVERTURNED HE WAS GOING TO RESIGN WITH HIS MOST IMPORTANT LEGACY ON THE SUPREME COURT SHATTERED IT WAS DEPRESSING FOR HIM SAYS PAMELA KARLAN A FORMER BLACKMUN CLERK WHO IS NOW A LAW PROFESSOR AT THE UNIVERSITY OF VIRGINIA BUT IN JUNE 1992 ROE SURVIVED A 54 COURT VOTE IT HAD A BIG EFFECT ON HIM WHEN HE SAW THE CENTER OF THE COURT WOULD HOLD SAYS NORVAL MORRIS A UNIVERSITY OF CHICAGO CRIMINOLOGIST AND A FRIEND OF THE JUSTICE'S FIVE MONTHS LATER MR CLINTON WON THE WHITE HOUSE AND PLEDGED TO APPOINT ONLY ABORTIONRIGHTS SUPPORTERS TO THE HIGH COURT SUDDENLY JUSTICE BLACKMUN'S CENTRAL WORRY HAD EVAPORATED THE REPUBLICAN OCTOGENARIAN AND MR CLINTON HAVE BEEN CORDIAL ACQUAINTANCES SINCE THE MID1980S AS A RESULT OF SHARED FRIENDS IN ARKANSAS LEGAL CIRCLES A LONGTIME PARTICIPANT IN RENAISSANCE WEEKEND THE ELITE NEW YEAR'S GATHERING AT HILTON HEAD SC JUSTICE BLACKMUN RECEIVED STAR TREATMENT WHEN THE EVENT BECAME A CLINTONITE CELEBRATION IN 1992 THE YOUNG PRESIDENT EMOTIONALLY INTRODUCED THE OLD JURIST WHEN THEY WERE COCHAIRMEN OF A WIDERANGING DISCUSSION AT THE RETREAT THAT YEAR ENTITLED CHANGING OF THE GUARD ANOTHER FACTOR THAT HAS ENERGIZED JUSTICE BLACKMUN IS HIS AUTHORITY AS THE MOSTSENIOR JUSTICE TO ASSIGN OPINIONWRITING DUTIES WHEN HE AND CHIEF JUSTICE WILLIAM REHNQUIST ARE ON OPPOSITE SIDES OF A CASE WITH LIBERAL GIANTS LIKE WILLIAM BRENNAN AND JUSTICE MARSHALL GONE HE HAS TAKEN IT ON HIMSELF IN OPINIONS TO REMIND THE COURT OF THE HUMAN CONSEQUENCES OF ITS ACTIONS A HABIT THAT ENRAGES CONSERVATIVE CRITICS ROGER CLEGG OF THE NATIONAL LEGAL CENTER FOR THE PUBLIC INTEREST A CONSERVATIVE LEGAL GROUP ACCUSES JUSTICE BLACKMUN OF EMBODYING AN ARROGANT BELIEF THAT JUDICIAL POWER CAN AND SHOULD BE USED TO RIGHT ALL WRONGS WHETHER OR NOT THE JUDICIARY ACTUALLY HOLDS THE POWER IT IS EXERCISING THE CRITICS SOMETIMES INCLUDE JUSTICE ANTONIN SCALIA WHO BELIEVES THAT HIS COLLEAGUE SUBSTITUTES SENTIMENT FOR LEGAL REASONING AND ACTS MORE LIKE A POLITICIAN THAN A JURIST IN A BITING RESPONSE TO THE DEATHPENALTY DISSENT JUSTICE SCALIA SAID THAT NO MATTER HOW PASSIONATE OR DEEPLY HELD OPPOSITION TO CAPITAL PUNISHMENT LACKS ANY TEXTUAL OR HISTORICAL SUPPORT FROM THE CONSTITUTION NONETHELESS THE MEMBERS OF THE COURT SEEM TO VIEW THEIR ELDER STATESMAN WITH AFFECTION HE HAS DEVELOPED A PARTICULARLY WARM RELATIONSHIP WITH JUSTICE DAVID SOUTER WHO SHARES WITH HIM A CLOSE BOND WITH RETIRED JUSTICE BRENNAN WHOM MR SOUTER REPLACED JUSTICES BLACKMUN AND SOUTER WERE THE ONLY MEMBERS OF THE COURT WHO PAID CONDOLENCE CALLS ON THE FRAIL RETIRED JUSTICE ON THE DAY THAT HIS LIBERAL COMRADEINARMS JUSTICE MARSHALL DIED LAST YEAR HAVING LONG BEEN IMPRESSED BY FEDERAL JUDGE RUTH BADER GINSBURG'S SHARP MIND JUSTICE BLACKMUN WAS PLEASED WHEN PRESIDENT CLINTON CHOSE HER LAST YEAR TO REPLACE THE RETIRING BYRON WHITE BUT JUSTICE BLACKMUN NOW WORRIES THAT THE COURT'S NEWEST MEMBER TOGETHER WITH JUSTICES SCALIA AND SOUTER HAVE GOTTEN TOO LOQUACIOUS DURING ORAL ARGUMENTS OF CASES STIFLING THE LAWYERS JUSTICE BLACKMUN WHO DOESN'T SAY MUCH DURING ARGUMENTS HAS TAKEN TO KEEPING A TONGUEINCHEEK SCORECARD OF WHO ASKS HOW MANY QUESTIONS IN EACH CASE HE ALSO SHARED WITH JUSTICE GINSBURG ADVICE GIVEN TO HIM EARLY IN HIS HIGH COURT CAREER BY THE LATE JUSTICE HUGO BLACK IF YOU DON'T ASK MANY QUESTIONS YOU WON'T ASK MANY FOOLISH QUESTIONS BUT IF SHE GOT THE HINT A SMILING JUSTICE BLACKMUN LATER REPORTED TO FRIENDS SHE IGNORED IT 9403220065 940322 LAW HIGH COURT TO REVIEW STATE DECISION NARROWING RULE ON ARBITRATION PACTS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT AGREED TO DECIDE WHETHER PEOPLE OR COMPANIES WHO SIGN CONTRACTS COMMITTING THEM TO SETTLE DISPUTES BY ARBITRATION MAY INSTEAD SUE IN COURT THE JUSTICES WILL REVIEW A DECISION BY ALABAMA'S TOP COURT THAT MADE IT RELATIVELY EASY FOR CONSUMERS TO SUE COMPANIES EVEN IF THEY PREVIOUSLY HAD AGREED TO RESOLVE DISAGREEMENTS BY ARBITRATION COMPANIES IN MANY INDUSTRIES PARTICULARLY THE SECURITIES INDUSTRY INCREASINGLY INCLUDE ARBITRATION AGREEMENTS IN EMPLOYMENT AND SERVICE CONTRACTS A FEDERAL STATUTE REQUIRES ENFORCEMENT OF ARBITRATION PROVISIONS IN CONTRACTS INVOLVING INTERSTATE COMMERCE IN LIGHT OF THIS STATUTE THE US SUPREME COURT REPEATEDLY HAS ENDORSED THIS MECHANISM FOR RESOLVING DISPUTES WITHOUT GOING TO COURT MOST LOWER COURTS FOLLOWING THE SUPREME COURT'S LEAD HAVE READ THE FEDERAL ARBITRATION LAW BROADLY BUT SOME STATE COURTS INCLUDING THOSE IN ALABAMA NORTH CAROLINA AND INDIANA HAVE INTERPRETED THE FEDERAL STATUTE NARROWLY MAKING IT EASIER FOR PARTIES TO ESCAPE FROM ARBITRATION AGREEMENTS THE ALABAMA SUPREME COURT HAS SAID THAT ARBITRATION AGREEMENTS AREN'T BINDING UNLESS THE PARTIES CONTEMPLATED THAT THEY WOULD BE ENGAGED IN SUBSTANTIAL INTERSTATE ACTIVITY REGARDLESS OF WHETHER THEY IN FACT DID BUSINESS THAT CROSSED STATE LINES IN THE CASE THE JUSTICES AGREED TO HEAR AN ALABAMA COUPLE SUED AN ARKANSASBASED PESTCONTROL COMPANY ALLEGING THAT THE FIRM HAD BEEN NEGLIGENT IN NOT DETECTING A TERMITE INFESTATION IN THEIR HOME THE FIRM ALLIEDBRUCE TERMINIX COS HAD AN ARBITRATION CLAUSE IN ITS SERVICE CONTRACT BUT THE ALABAMA SUPREME COURT DECLINED TO ENFORCE IT THE ALABAMA COURT SAID THE CONSUMERS HADN'T EXPECTED TO BE INVOLVED IN INTERSTATE COMMERCE SEPARATELY MAJOR TITLEINSURANCE COMPANIES AGAIN FAILED TO GET THE SUPREME COURT TO SHIELD ASPECTS OF THEIR BUSINESS FROM FEDERAL ANTITRUST SCRUTINY WITHOUT COMMENT THE JUSTICES REFUSED TO DISTURB A LOWERCOURT RULING THAT SAID RESEARCH AND ANALYSIS OF TITLE DOCUMENTS ISN'T COVERED BY AN EXCEPTION TO FEDERAL ANTITRUST LAWS THAT PROTECTS THE INSURANCE BUSINESS PROPERTY OWNERS BUY TITLE INSURANCE TO GUARD AGAINST LOSSES FROM COMPETING CLAIMS TO THEIR PROPERTY OR OTHER DEFECTS IN TITLE PAPERS TITLE INSURERS ALSO RESEARCH AND ANALYZE SUCH PAPERS THE FEDERAL TRADE COMMISSION HAS CONTENDED THAT TITLE INSURERS VIOLATED FEDERAL ANTITRUST RULES BY SETTING UNIFORM RATES IN SOME STATES FOR RESEARCH AND ANALYSIS SERVICES 9403220064 940322 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY MARCH 9 1994 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9403220063 940322 LETTERS TO THE EDITOR THE WAR THAT SHOULDN'T BE FELIX CORLEY'S ARTICLE THE FORGOTTEN WAR EDITORIAL PAGE MARCH 3 PROVIDES A VERY NARROW VIEW OF THE CONFLICT BETWEEN ARMENIA AND AZERBAIJAN IT IS SIMILAR TO THE VIEWS OF THE ARMENIANAMERICAN LOBBY WHICH CONSTANTLY PORTRAYS ARMENIA AND ARMENIANS OF NAGORNOKARABAKH AS A BELEAGUERED PEOPLE UNDER ATTACK BY AZERBAIJAN THE ESSENTIAL FACT IS THE ARMENIAN FORCES HAVE EFFECTIVE CONTROL OF ONEFOURTH OF THE TERRITORY OF AZERBAIJAN THE UNITED NATIONS ESTIMATES THAT THERE ARE NOW MORE THAN 11 MILLION REFUGEES IN AZERBAIJAN AS A RESULT OF THIS CONFLICT THE US CANNOT DIRECTLY HELP THESE REFUGEES BECAUSE THE ARMENIAN LOBBY GOT CONGRESS TO ENACT A BAN ON ASSISTANCE INCLUDING HUMANITARIAN ASSISTANCE TO AZERBAIJAN WHILE THIS US LAW IS BEING ENFORCED OTHERS HAVE BEEN NEGLECTED STIPULATIONS CONTAINED IN THE FISCAL 1994 FOREIGN OPERATIONS APPROPRIATIONS BILL STATED THAT NO FUNDS SHALL BE MADE AVAILABLE TO A GOVERNMENT OF THE NEW INDEPENDENT STATES OF THE FORMER SOVIET UNION WHICH DIRECTS ANY ACTION IN VIOLATION OF THE TERRITORIAL INTEGRITY OF ANY OTHER NEW INDEPENDENT STATE MR CORLEY ALSO MAKES THE CLASSIC MISTAKE OF BELIEVING THAT THIS WAR IS BEING CARRIED OUT BY KARABAKH ARMENIANS ALONE 100000 ARMENIANS AGAINST SEVEN MILLION AZERBAIJANIS THIS IS THE SAME FICTION PUT FORWARD BY SERBIA THE KARABAKH ARMENIANS LIKE THE BOSNIAN SERBS DO NOT HAVE THE HEAVY WEAPONRY ARTILLERY AND HELICOPTERS TO CARRY OUT A WAR OF AGGRESSION THE WAR MATERIAL ALL COMES FROM ARMENIA ITSELF ALONG WITH MANY OF THE MILITARY PERSONNEL IT IS NO COINCIDENCE THAT THE SAME PERSON SERVES AS DEFENSE MINISTER OF ARMENIA AND KARABAKH WHILE MR CORLEY SPEAKS OF THE MASSACRE AT SUMGAIT WHERE DOZENS OF ARMENIANS WERE KILLED HE NEGLECTS TO MENTION THE KHOJALY MASSACRE OF FEB 25 1992 IN ONE NIGHT THIS TOWN OF 7000 WAS OVERRUN BY ARMENIAN FORCES HUNDREDS OF CIVILIANS WERE KILLED THOUSANDS WERE FORCIBLY EXPELLED AND THE ENTIRE TOWN DESTROYED OTHER TOWNS IN THE ARMENIANOCCUPIED TERRITORY HAVE EXPERIENCED SIMILAR FATES WITHOUT CITING ANY EVIDENCE MR CORLEY CONFIDENTLY ASSERTS THAT MERCENARIES FROM IRAN AND ELSEWHERE ARE AIDING THE AZERBAIJANI WAR EFFORT WHILE FAILING TO DISCUSS WIDELY CIRCULATED REPORTS THAT ARMENIAN COMMANDERS HAVE RECEIVED MILITARY TRAINING AT SECRET FACILITIES IN LIBYA AND LEBANON EURASIAN REPORT WINTER 1992 RESOLVING THE LONGSTANDING CONFLICT BETWEEN ARMENIA AND AZERBAIJAN WILL REQUIRE THE BEST EFFORTS OF A US THAT IS COMMITTED TO AN EVENHANDED POLICY IN OUR TROUBLED REGION ONESIDED REPORTS SUCH AS MR CORLEY'S HOWEVER WELLINTENDED DO LITTLE TO FURTHER THE EDUCATION OF EITHER THE POLICYMAKING COMMUNITY OR THE PUBLIC AT THE TIME OF THE SOVIET COLLAPSE THE US ESPECIALLY MADE MUCH OF THE PRINCIPLE OF SELFDETERMINATION AS NOW BEING WITHIN THE REACH OF THE PEOPLES THAT HAD BEEN SUPPRESSED THE PEOPLE OF NAGORNOKARABAKH TOOK THOSE DECLARATIONS AT FACE VALUE AND VOTED OVERWHELMINGLY FOR INDEPENDENCE MR CORLEY NOTES THAT THE 180000 ARMENIANS HAVE BEEN ABLE TO DRIVE BACK THE FORCES OF A NATION OF SEVEN MILLION PEOPLE WITH AMAZING SUCCESS THIS DEMONSTRATES HOW MUCH THAT HOMELAND AND THE PURSUIT OF THEIR ANCIENT CULTURE MEAN TO THE PEOPLE OF KARABAKH UNFORTUNATELY THERE IS NOT YET AN EFFECTIVE WORLD COURT TO HELP RESOLVE THE MANY ETHNIC COMPLEXITIES THAT CAME WITH THE COMMUNIST ERA WE HAVE ONLY A UN WHICH IS AT THE MERCY OF ANY OF A DOZEN NATIONAL INTERESTS THE SITUATION IN KARABAKH IS NOT HOPELESS HOWEVER DESPITE THE FIGHTING THE REFUGEES AND DESTRUCTION SUFFERED BY BOTH SIDES THEIR CONFLICT WAS NOT AND STILL IS NOT DRIVEN BY THE FIERCE HISTORICAL AND RELIGIOUS HATRED AND COMPLEX BOUNDARY ISSUES THAT HAVE CREATED THE BOSNIAN MESS IN ORDER TO RESOLVE THE CONFLICT A DETERMINED EFFORT IS NEEDED ON THE PART OF THE SUPERPOWERS AND OF THE US ESPECIALLY TO GET THE COMBATANTS TO THE CONFERENCE TABLE THE AZERI AREAS CONQUERED BY THE ARMENIANS CAN BE READILY RESTORED TO THE AZERIS IF ONLY THERE IS ASSURANCE OF PEACEFUL INTENT AMERICA CAN OFFER HER COOPERATION TOWARD DEVELOPING BOTH AREAS TO NEW LEVELS OF POLITICAL STABILITY AND NATIONAL PROGRESS THE FACT IS THAT ARMENIA AZERBAIJAN GEORGIA AND NAGORNOKARABAKH DESPERATELY NEED ONE ANOTHER'S AGRICULTURAL TECHNOLOGICAL AND POLITICAL SUPPORT BOTH FOR THEIR INDIVIDUAL PROGRESS AND TO GIVE THEIR REGION THE STRENGTH AND INDEPENDENCE TO DEVELOP ACCEPTABLE RELATIONS WITH RUSSIA AND THE REST OF THE WORLD SUCH SMALLREGION INDEPENDENCE IS NEEDED FOR PURPOSES OF WORLD PEACE TO DISCOURAGE THE FORMATION OF MEGAPOWER CONFRONTATIONS SUCH AS EXISTED DURING THE SOVIET ERA 9403220062 940322 BUSINESS BRIEF HARCOR ENERGY INC FOURTHQUARTER LOSS REPORT TO BE NARROWER FIRM SAYS HARCOR ENERGY INC SAID IT WILL REPORT A NARROWER FOURTHQUARTER LOSS THAN A YEAR EARLIER HARCOR'S YEAREARLIER FOURTHQUARTER LOSS WAS 712000 OR 13 CENTS A SHARE ON REVENUE OF 11 MILLION THE OIL AND NATURALGAS COMPANY BLAMED THE LOSS IN THE MOST RECENT PERIOD ON THE DEPRECIATION OF CERTAIN RESERVES DUE TO LOWER OIL PRICES THE HOUSTON COMPANY ALSO SAID IT EXPECTS A NARROWER LOSS FOR THE FULL YEAR 1993 IN 1992 HARCOR HAD A NET LOSS OF 14 MILLION OR 40 CENTS A SHARE ON REVENUE OF 32 MILLION HARCOR SAID ITS GAS RESERVES AS OF DEC 31 WERE 17 BILLION CUBIC FEET COMPARED WITH 66 BILLION A YEAR EARLIER OIL RESERVES WERE 17 MILLION BARRELS ON DEC 31 COMPARED WITH 13 MILLION A YEAR EARLIER 9403220061 940322 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY ROCHELLE SHARPE PENNYPINCHERS ARE OUT VISIONARIES IN AS COMPANIES SEEK NEW EXECUTIVES AFTER HIRING BELTTIGHTENERS THROUGH THE RECESSION COMPANIES NOW LOOK FOR EXECUTIVES WHO CAN BUILD BUSINESSES AND TAKE THEM TO THE NEXT PLATEAU SAYS ALAN NEELY MANAGING DIRECTOR OF KORN/FERRY INTERNATIONAL IN ATLANTA COMPANIES ARE FINALLY LAUNCHING NEW PRODUCT LINES AND DIVISIONS WHICH CALL FOR NEW LEADERS SEARCH FIRMS SAY THEIR BUSINESS HAS INCREASED BY AT LEAST 40 IN THE PAST YEAR ONETHIRD OF AVAILABLE EXECUTIVE JOBS ARE FOR NEWLY CREATED POSITIONS SEARCH FIRMS SAY CANDIDATES WITH EXPERTISE IN FINANCE MARKETING OR ENGINEERING ARE NOW MORE DESIRABLE THAN THOSE WITH EXPERIENCE MANAGING ENTIRE DIVISIONS THE MOST HIGHLY SOUGHT MANAGERS ALSO HAVE OVERSEAS EXPERIENCE PARTICULARLY IN LATIN AMERICA THE FAR EAST AND EASTERN EUROPE EXECUTIVES SPENT 38 MONTHS FINDING NEW JOBS IN 1993 DOWN FROM SIX MONTHS IN 1991 SAYS DRAKE BEAM MORIN A CONSULTING FIRM ART OF LYING HERE'S HOW TO WRITE RECOMMENDATIONS FOR LOUSY JOB CANDIDATES EXCERPTS FROM THE LEXICON OF INTENTIONALLY AMBIGUOUS RECOMMENDATIONS LIAR BY LEHIGH UNIVERSITY ECONOMIST ROBERT THORNTON WHIZ AROUND THE INTERNET FOR A CANDIDATE WITH INTERPERSONAL PROBLEMS HE SUGGESTS SAYING I AM PLEASED TO SAY THIS PERSON IS A FORMER COLLEAGUE OF MINE FOR THE LAZY WORKER IN MY OPINION YOU WILL BE VERY FORTUNATE TO GET THIS PERSON TO WORK FOR YOU THE BOOK PUBLISHED BY MEADOWBROOK PRESS IN DEEP HAVEN MINN ALSO SUGGESTS RECOMMENDATIONS FOR THE CRIMINAL HE'S A MAN OF MANY CONVICTIONS AND I'M SORRY WE LET HER GET AWAY FOR THE UNTRUSTWORTHY CANDIDATE HER TRUE ABILITY IS DECEIVING AND FOR THE INEPT WORKER I MOST ENTHUSIASTICALLY RECOMMEND THIS PERSON WITH NO QUALIFICATIONS WHATSOEVER SECURITY GUARDS ARE HIRED INCREASINGLY TO FIGHT CRIME ON THE STREETS WITH POLICE FORCES UNDERSTAFFED MERCHANTS HIRE PRIVATE SECURITY FIRMS TO PATROL THEIR BLOCKS GUARDS SOMETIMES MONITOR ENTIRE DOWNTOWNS WATCH PARKING LOTS AND ESCORT CUSTOMERS TO THEIR CARS THE PRIVATE SECURITYGUARD BUSINESS WILL GROW TO 14 BILLION IN 1994 FROM 127 BILLION LAST YEAR THE BULK OF THE INCREASED DEMAND COMES FROM BUSINESSES SAYS PINKERTON'S INC SOME BUSINESSES POOL MONEY TO PAY FOR NEIGHBORHOOD GUARDS NEW YORK CITY LETS COMPANIES FORM BUSINESS DISTRICTS THAT PAY SPECIAL TAXES EARMARKED FOR PRIVATE SECURITY IN HOUSTON EVEN THE POLICE DEPARTMENT HIRES GUARDS WHO PATROL THE DEPARTMENT'S AUTOTHEFT STORAGE LOT LETTING OFFICERS DEVOTE MORE TIME TO PROTECTING CITIZENS PINKERTON'S SAYS ITS BUSINESS JUMPED BY 8000 GUARDHOURS A WEEK AFTER THE EARTHQUAKE AS CALIFORNIA COMPANIES ADDED SECURITY TO DETER LOOTERS HITECH INTERVIEWS JOB SEEKERS IN PIC'N PAY SHOE STORES MUST DIAL AN 800 NUMBER AND ANSWER A 100QUESTION INTERVIEW VIA PHONE MAIL A COMPUTER COMPILES RESPONSES TO THE YES/NO QUESTIONS EVEN MEASURING HOW MANY SECONDS IT TAKES TO ANSWER SUCH QUERIES AS TO GET A JOB WOULD YOU LIE PIC'N PAY SAYS THE SYSTEM ALLOWS IT TO CENTRALIZE PERSONNEL OPERATIONS AND ENSURE NO ONE IS ASKED ILLEGAL QUESTIONS DEATH AT WORK THE RATE OF WORKRELATED HOMICIDES FOR BLACK EMPLOYEES WAS MORE THAN TWICE THAT OF WHITE WORKERS DURING THE 1980S THE NATIONAL INSTITUTE FOR OCCUPATIONAL SAFETY AND HEALTH SAYS BLACK TAXI DRIVERS AND GASSTATION ATTENDANTS HAVE ESPECIALLY HIGH HOMICIDE RATES BLACKS MAY WORK IN MORE DANGEROUS NEIGHBORHOODS THAN THEIR WHITE COUNTERPARTS EXPERTS SPECULATE NOTHING COULD BE FINER THAN TO EMPLOY IN CAROLINA NORTH CAROLINA CUTS UNEMPLOYMENTINSURANCE TAXES BY MORE THAN ONETHIRD ITS UNEMPLOYMENTINSURANCE TRUST FUND HAS GROWN TO 15 BILLION BECAUSE ITS UNEMPLOYMENT RATE HAS BEEN LOW BUT MORE THAN HALF OF THE STATES HAVE HAD TO RAISE UNEMPLOYMENT TAXES IN THE PAST YEAR CONNECTICUT'S FUND IS EXPECTED TO RUN A 721 MILLION DEFICIT THIS YEAR LAUGHTER IS BIG BUSINESS AS COMPANIES SEEK WAYS TO BREAK OFFICE TENSION COMPANIES ARE INCREASINGLY HIRING HUMOR CONSULTANTS TO HELP REDUCE EMPLOYEE STRESS AND BURNOUT EVERYONE USES THE EXPRESSION SOMEDAY WE'LL LAUGH ABOUT THIS' WHY WAIT SAYS JOEL GOODMAN DIRECTOR OF THE HUMOR PROJECT IN SARATOGA SPRINGS NY HE SUGGESTS WORKERS PRETEND THEY ARE ALLEN FUNT OF CANDID CAMERA FAME FOR FIVE MINUTES A DAY TO FIND HUMOR IN STRESSFUL SITUATIONS BUSINESSES PUT CARTOON BULLETIN BOARDS NEAR ELEVATORS AND PLAY FUNNY VIDEOTAPES IN STAFF LOUNGES SOME MANAGERS WEAR SAVE TIME SEE IT MY WAY BUTTONS WHILE SOME WORKERS KEEP PROPS ON DESKS LIKE MEDICINE BOTTLES LABELED EXTRA STRENGTH SCREWITALL BEN & JERRY'S WHICH HAS CELEBRATED BARRY MANILOW'S AND ELVIS'S BIRTHDAYS MAINTAINS AN EMPLOYEE COMMITTEE DEDICATED TO INCREASING WORKPLACE HAPPINESS IT IS CALLED THE JOY GANG MORE THAN 1000 MANAGERS EDUCATORS AND OTHERS ARE EXPECTED TO ATTEND THE HUMOR PROJECT'S POWER OF POSITIVE HUMOR AND CREATIVITY CONFERENCE IN SARATOGA SPRINGS FROM APRIL 1517 THE CHECKOFF AMONG THE RESUME BLOOPERS THAT HAVE CROSSED THE DESK OF PERSONNEL EXPERT ROBERT HALF I AM A RABID TYPIST THANK YOU FOR YOUR CONSIDERATION HOPE TO HEAR FROM YOU SHORTY AND HERE ARE MY QUALIFICATIONS FOR YOU TO OVERLOOK 9403220060 940322 YOUR MONEY MATTERS FIXEDINCOME INVESTORS ARE PERPLEXED BY MUDDLED OUTLOOK FOR INTEREST RATES BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL WITH EVEN BONDMARKET PROFESSIONALS BEWILDERED BY THE CLOUDED OUTLOOK FOR INTEREST RATES INDIVIDUAL INVESTORS HAVE A RIGHT TO FEEL CONFUSED A LOT OF THEM HAVE TAKEN A BEATING THIS YEAR AS LONGTERM BOND PRICES TUMBLED AFTER THE FEDERAL RESERVE RAISED SHORTTERM INTEREST RATES EARLY LAST MONTH MANY TAXABLE AND MUNICIPALBOND MUTUAL FUNDS HAVE LOST 3 AND 4 AND SOME OF THE LONGTERM ZEROCOUPON GOVERNMENTBOND FUNDS HAVE SUFFERED 6 AND 7 DECLINES TODAY'S MEETING OF THE FED'S POLICYMAKING FEDERAL OPEN MARKET COMMITTEE COULD BRING MORE PAIN MANY INSTITUTIONAL INVESTORS EXPECT THE MEETING WILL MOVE QUICKLY TO RAISE INTEREST RATES AGAIN THAT COULD SEND BOND PRICES LOWER AND MEAN FURTHER LOSSES FOR BONDMARKET FUNDS ESPECIALLY THOSE THAT INVEST IN LONGTERM BONDS INDEED BOND PRICES FELL SHARPLY IN ADVANCE OF THE MEETING BUT POLICY MAKERS COULD ALSO DECIDE TO WAIT LONGER SO THEY CAN GET A BETTER HANDLE ON WHAT'S REALLY HAPPENING IN THE ECONOMY PROFESSIONAL INVESTORS WERE SO ENCOURAGED BY FAVORABLE INFLATION NEWS EARLY LAST WEEK THAT THEY BID UP LONGTERM BOND PRICES PUSHING YIELDS LOWER THERE WAS EVEN TALK THAT MAYBE THE MARKET HAD TURNED A CORNER ALL OF THIS LEAVES INDIVIDUAL INVESTORS WONDERING WHO TO BELIEVE AND WHAT TO DO PEOPLE WHO OWN LONGTERM BOND FUNDS WANT TO KNOW IF THEY SHOULD SELL NOW AND AVOID CAPITAL LOSSES IF INTEREST RATES RISE FURTHER IT'S THE NO 1 QUESTION ON CONSERVATIVE INVESTORS' MINDS THESE DAYS SAYS JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS PEOPLE WITH NEW CASH TO INVEST ARE EQUALLY PERPLEXED LONGTERM BOND FUNDS MAY BE RISKY BUT YIELDHUNGRY INVESTORS AREN'T EAGER TO LIVE WITH THE LOWER RETURNS FROM SAFER SHORTERTERM BOND FUNDS OR MONEYMARKET FUNDS HOW MUCH YIELD DO YOU HAVE TO GIVE UP SAY YOU PUT 300000 IN THE NOLOAD VANGUARD FIXED INCOME LONGTERM CORPORATE BOND FUND IT CURRENTLY YIELDS 69 OR 20700 A YEAR BUT IF YOU PUT THE SAME MONEY IN THE NOLOAD VANGUARD FIXED INCOME SHORTTERM BOND FUND WHICH YIELDS 52 YOUR INCOME WOULD BE ONLY 15600 UNDERSTANDABLY MOST PEOPLE DON'T WANT TO DO THIS SAYS MR MARKESE MOREOVER IF INVESTORS SELL THEIR LONGTERM BOND FUNDS THEY WILL HAVE TO GIVE UP 28 OF THEIR LONGTERM CAPITAL GAINS IN FEDERAL TAXES THEY ALSO MAY HAVE TO PAY SALES CHARGES SINCE SOME BOND FUNDS SOLD BY BROKERS LEVY BACK END SALES CHARGES IF INVESTORS LEAVE BEFORE A SPECIFIED DEADLINE IT'S A BITTER PILL TO SWALLOW SAYS STEVE JANACHOWSKI PARTNER IN BROUWER & JANACHOWSKI A SAN FRANCISCO INVESTMENTMANAGEMENT FIRM SO FAR MOST INVESTORS SEEM TO BE DOING MORE THINKING THAN SELLING SAYS ROBERT ADLER PRESIDENT OF AMG DATA SERVICES AN ARCATA CALIF FIRM THAT MONITORS MUTUALFUND FLOWS SOME LONGTERM BOND FUNDS HAVE HAD REDEMPTIONS BUT THE AMOUNT SO FAR IS LESS THAN 1 VANGUARD MUTUAL FUNDS SAYS ITS OUTFLOW FROM LONGTERM BOND FUNDS HAS BEEN TEPID THAT'S GOOD SAY A NUMBER OF BONDMARKET STRATEGISTS WHO FEEL THAT THIS IS A TIME FOR CAUTION BUT NOT THE TIME TO LIQUIDATE YOUR LONGTERM BOND HOLDINGS NOW IS NOT A GOOD TIME TO SELL SAYS MARSHALL B FRONT SENIOR EXECUTIVE VICE PRESIDENT AT STEIN ROE & FARNHAM INC A CHICAGO INVESTMENTCOUNSELING AND MUTUALFUND COMPANY IF INVESTORS THINK THEY HAVE TOO MUCH OF THEIR PORTFOLIOS ALLOCATED TO LONGTERM BONDS THERE WILL BE A BETTER TIME TO REDUCE THESE HOLDINGS LATER HE SAYS HE EXPECTS THE ECONOMY TO SLOW DOWN LATER AND INTEREST RATES TO BACK OFF THE BOND MARKET'S VOLATILE ACTION THIS YEAR POINTS UP A KEY LESSON FOR INVESTORS SAYS BRAD PERRY SENIOR PARTNER IN DAVID L BABSON CO A CAMBRIDGE MASS INVESTMENTMANAGEMENT FIRM LONGTERM BONDS ARE VOLATILE AND IT DOESN'T MAKE SENSE HAVING ALL YOUR FIXEDINCOME MONEY IN LONGTERM BONDS BUT INVESTORS SHOULD HANG TOUGH AT THIS POINT SAYS MR PERRY THE BOND MARKET IS DISCOUNTING THE WORST INFLATION THAT WE COULD REASONABLY EXPECT IN THE NEXT SIX TO 12 MONTHS WHAT ABOUT INCOMEORIENTED INVESTORS WITH CASH TO INVEST NOW PAUL SOLLI MANAGING DIRECTOR OF FINANCIAL DESIGN A LARKSPUR CALIF INVESTMENTMANAGEMENT FIRM SAYS PEOPLE SWEATING ABOUT POTENTIAL LOSSES ON LONGTERM BOND FUNDS WOULDN'T BE IN THIS FIX TODAY IF THEY HAD PURCHASED INTERMEDIATE OR SHORTTERM BOND FUNDS THAT'S BECAUSE THE PRICE OF SHORTTERM BONDS AND BOND FUNDS ISN'T AS SENSITIVE AS LONGTERM BONDS AND FUNDS TO A GIVEN MOVE IN INTEREST RATES ONCE YOU GO OUT BEYOND SEVEN YEARS YOU HISTORICALLY HAVEN'T RECEIVED A COMMENSURATE RETURN FOR TAKING ON ADDED RISK MR SOLLI SAYS IF THE FEDERAL RESERVE RAISES SHORTTERM INTEREST RATES AGAIN SHORTTERM AND INTERMEDIATETERM BOND FUNDS WILL TAKE A SMALL HIT SAYS MR JANACHOWSKI HE DOESN'T THINK IT'S NECESSARILY A GOOD IDEA TO BUY ADJUSTABLERATE MORTGAGE MUTUAL FUNDS NOW AS A WAY AROUND THE PROBLEM OF VOLATILE INTEREST RATES IF YOU REALLY BELIEVE INTEREST RATES ARE BEGINNING A SUSTAINED RISE YOU'RE BETTER OFF IN MONEYMARKET FUNDS HE SAYS MANY PROS LIKE INTERMEDIATETERM MUNICIPAL BOND FUNDS ONCE A TAXPAYER GETS INTO THE 28 MARGINAL INCOMETAX BRACKET OR HIGHER MUNICIPALBOND FUNDS ARE ATTRACTIVELY PRICED TODAY COMPARED WITH TAXABLEBOND FUNDS SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO PUBLICATION THAT TRACKS MUTUALFUND PERFORMANCE AFTER TAXES ARE TAKEN INTO CONSIDERATION MANY INVESTORS WILL DO BETTER WITH THE TAXFREE FUND THAN THE TAXABLE FUND HE SAYS THE SUPPLYDEMAND DYNAMIC IS WORKING FOR MUNICIPALS THE ISSUANCE OF MUNICIPAL BONDS HAS DECLINED THIS YEAR YET IT'S EXPECTED THAT THE DEMAND FOR TAXFREE MUNICIPALS WILL SHARPLY INCREASE AS MANY PEOPLE PAY THEIR HIGHER INCOMETAX BILLS IN APRIL MR FRONT SAYS INVESTORS WHO LIVE IN HIGHTAX STATES LIKE CALIFORNIA AND NEW YORK MIGHT CONSIDER BUYING A DOUBLETAXFREE STATE MUNICIPALBOND FUND WITH INTERMEDIATE MATURITIES SAYS MR MARKESE EVEN THOUGH THEY ARE SLIGHTLY MORE RISKY BECAUSE OF CONCENTRATION IN ONE STATE HE SAYS THEY ARE THE EASIEST AND MOST CONVENIENT TAX SHELTER AVAILABLE TO MOST PEOPLE 9403220059 940322 WHO'S NEWS HARVARD BUSINESS REVIEW'S MCMULLIN RESIGNS TOP POST BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL A SAGA OF MANAGEMENT INSTABILITY CONTINUED AT HARVARD BUSINESS REVIEW AS RUTH R MCMULLIN STEPPED DOWN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HARVARD BUSINESS SCHOOL PUBLISHING THE REVIEW'S HOLDING COMPANY PEOPLE FAMILIAR WITH THE SITUATION CONFIRMED THAT MS MCMULLIN HAD FREQUENT DISAGREEMENTS WITH SUBORDINATES AND SUPERIORS ABOUT THE DIRECTION OF THE REVIEW AND THE PUBLISHING COMPANY WHICH ALSO MARKETS POPULAR BUSINESSSCHOOL CASE STUDIES AND VIDEOS MS MCMULLIN COULDN'T BE REACHED FOR COMMENT AND A SPOKESWOMAN FOR THE REVIEW DECLINED TO COMMENT ON THE REASONS BEHIND HER RESIGNATION THE BUSINESS REVIEW OFTEN QUOTED AS AN AUTHORITY ON HOW COMPANIES SHOULD BE MANAGED HAS HAD LITTLE EXECUTIVE STABILITY OF ITS OWN OVER THE PAST TWO YEARS ITS CIRCULATION IS DROPPING AND TO OUTSIDERS AT LEAST TOP MANAGERS SERVING IN POSITIONS WITH SIMILAR RESPONSIBILITY AND AUTHORITY MAKE IT DIFFICULT TO DISCERN WHO CALLS THE EDITORIAL SHOTS MS MCMULLIN PAID ABOUT 400000 ANNUALLY WAS NAMED TO HER POST WHEN HARVARD BUSINESS SCHOOL PUBLISHING INCORPORATED AS A NONPROFIT ENTITY IN JANUARY 1993 IN AN ATTEMPT TO GAIN MORE REVENUES FROM THE OUTPUT OF PROFESSORS AT HARVARD BUSINESS SCHOOL AND CONTRIBUTORS TO THE MAGAZINE ACCORDING TO AN INTERNAL MEMO TO THE STAFF SHE WILL BE SUCCEEDED BY LINDA S DOYLE CURRENTLY ASSOCIATE DEAN FOR ADMINISTRATION AT THE BUSINESS SCHOOL THE MEMO FROM WILLIAM A SAHLMAN CHAIRMAN OF THE HOLDING COMPANY SAID MS MCMULLIN HAD CONTRIBUTED SIGNIFICANTLY TO THE STARTUP COMPANY BUT GAVE NO REASON FOR HER DEPARTURE ONE INSIDER HOWEVER SAID THAT MR SAHLMAN HAD PHILOSOPHICAL DIFFERENCES WITH MS MCMULLIN AND THAT SHE ALSO HAD DISAGREEMENTS WITH TOP MAGAZINE STAFF THE EXECUTIVE EDITOR OF THE MAGAZINE JOEL KURTZMAN GOT HIS POST IN JANUARY 1993 IN A MOVE THAT DISPLACED EDITOR T GEORGE HARRIS WHO WAS BROUGHT IN TO QUELL STAFF STRIFE OVER THE TOUGH MANAGEMENT STYLE OF FORMER EDITOR ROSABETH MOSS KANTER A FEW MONTHS EARLIER BUT MR KURTZMAN HASN'T YET BEEN GIVEN THE TITLE OF EDITOR AND EARLIER THIS MONTH THE MAGAZINE'S EDITORATLARGE NAN STONE WAS GIVEN THE ADDITIONAL TITLE OF EDITORIAL DIRECTOR SEEMINGLY GIVING HER THE RESPONSIBILITY FOR THE DAYTODAY EDITORIAL OPERATIONS THAT HAD BEEN MR KURTZMAN'S ADDITIONALLY ANNE LAURA FRIEDMAN THE WOMAN LISTED ON THE CURRENT MASTHEAD OF THE REVIEW AS MANAGING EDITOR THE TITLE JUST BELOW MR KURTZMAN'S HAS QUIT THE MAGAZINE TO JOIN A SMALL STARTUP COMPANY INVOLVED IN NEW MEDIA TECHNOLOGIES MR KURTZMAN A FORMER NEW YORK TIMES EDITOR HAS BEEN TRYING TO MAKE THE REVIEW BRIGHTER SHARPER AND MORE ACCESSIBLE YET HE IS SAID TO HAVE RUN INTO CONTINUED FRICTION WITH FACULTY MEMBERS WHO SEE THE MAGAZINE AS AN OUTLET FOR THEIR WRITING THE MAGAZINE HAS ADDED SUMMARIES OF ITS ARTICLES AND MORECOLORFUL GRAPHICS 9403220058 940322 DIVIDEND NEWS AMERICAN STORES CO AMERICAN STORES CO SALT LAKE CITY DECLARED A 2FOR1 STOCK SPLIT AND BOOSTED ITS QUARTERLY DIVIDEND 20 TO 12 CENTS A SHARE ON A POSTSPLIT BASIS FROM 10 CENTS A SHARE THE SPLIT IS PAYABLE APRIL 21 TO STOCK OF RECORD APRIL 7 THE GROCERY AND DRUGSTORE CHAIN CURRENTLY HAS 712 MILLION COMMON SHARES OUTSTANDING THE NEW DIVIDEND IS PAYABLE APRIL 13 TO STOCK OF RECORD APRIL 1 9403220057 940322 THE COD SHORTAGE IS COSTING BOSTON A KEY DISTINCTION ALTERNATIVES ARE A HARD SELL TO STAID NEW ENGLANDERS PASS THE SPINY DOGFISH BY TOM KNUDSON STAFF REPORTER OF THE WALL STREET JOURNAL THE HOME OF THE BEAN AND THE COD BOSTON SOON BOSTON MAY BE JUST THE HOME OF THE BEAN YEARS OF OVERFISHING AND MISMANAGEMENT HAVE DRASTICALLY REDUCED THE COD POPULATION IN LOCAL WATERS FISHERMEN ARE NERVOUS FISH MARKETS ARE SCRAMBLING TO FIND OTHER SEA LIFE TO SELL AND NEW ENGLAND CONSUMERS STEEPED IN A CODEATING TRADITION THAT PREDATES THE FIRST THANKSGIVING ARE REELING FROM HIGHER PRICES WAXYYELLOW IMPORTS AND STRANGE NEW CREATURES ON SHELVES ONCE LADEN WITH CHEAP FRESH COD AT THE PURITY SUPREME SUPERMARKET FISH COUNTER IN WEYMOUTH MASS MARGERY PENNEY RELUCTANTLY SNATCHES UP A POUND AND A HALF OF WHAT THEY CALL PREFROZEN COD IT DOESN'T COMPARE TO FRESH MS PENNEY SAYS MY BOYFRIEND REFUSES TO EAT IT EVEN IF I TRY TO FAKE HIM THINGS WERE SIMPLER IN THE OLD DAYS WHEN THE OCEAN TEEMED WITH COD INCLUDING LUNKERS OVER 100 POUNDS WHEN THE EXPLORER JOHN CABOT REACHED NORTH AMERICA IN 1497 COD WERE SO THICK HIS CREW CAUGHT THEM WITH BASKETS FOR CENTURIES THE BOTTOMFEEDING COD FED NEW ENGLAND HELPED FUEL ITS ECONOMY AND FRAMED ITS REGIONAL IDENTITY GENERATIONS GREW UP SALTING COD EATING CODFISH CAKES AND SWALLOWING CODLIVER OIL A SACRED COD HANGS FROM THE RAFTERS OF THE MASSACHUSETTS HOUSE OF REPRESENTATIVES PUT THERE IN 1784 AS A MEMORIAL TO THE IMPORTANCE OF THE CODFISHERY TO THE WELFARE OF THIS COMMONWEALTH COD WAS THE ECONOMIC BUILDING BLOCK OF THE REGION SAYS KENELM COONS EXECUTIVE DIRECTOR OF THE NEW ENGLAND FISHERIES DEVELOPMENT ASSOCIATION ALL THESE TRENDY SEACOAST TOWNS IN NEW ENGLAND USED TO BE LINED WITH RACKS OF COD DRYING IN THE SUN THE TONNAGE OF FISH THAT MOVED THROUGH BOSTON WAS REALLY SOMETHING BUT TODAY THE BELOVED COD IS IN DEEP TROUBLE SPAWNING STOCKS ARE AT HISTORIC LOWS ACROSS ONE OF THE MOST FABLED FISHING GROUNDS IN NORTH AMERICA STRETCHING FROM THE GEORGES BANK OFF MASSACHUSETTS THROUGH THE GULF OF MAINE TO THE GRAND BANKS OF NEWFOUNDLAND THE 1993 US COD CATCH WAS ONLY ABOUT 49 MILLION POUNDS ACCORDING TO A FEDERAL ESTIMATE THAT'S DOWN 19 FROM 1992 AND THE LOWEST SINCE 1973 THE CATCH IS EXPECTED TO DECLINE FURTHER FISHERIES SCIENTISTS SAY CANADA IS EVEN WORSE OFF COD FISHING ON THE GRAND BANKS OF NEWFOUNDLAND IS NOW BANNED COD HAS BEEN CALLED COMMERCIALLY EXTINCT AND MORE THAN 30000 PEOPLE HAVE LOST JOBS IT'S A TERRIBLE SHAME SAYS CHEF JASPER WHITE OWNER OF A SEAFOOD RESTAURANT IN BOSTON'S NORTH END AND IT'S NOT JUST COD ALL THE POPULAR SPECIES ARE DWINDLING WE'RE DEPLETING THE OCEAN ON FEB 28 A FLOTILLA OF FISHING BOATS CHUGGED INTO BOSTON HARBOR TO PROTEST THE NEW FEDERAL RULES WHICH APPLY TO HADDOCK HAKE AND OTHER BOTTOMFEEDING FISH TOO IN NEW BEDFORD MASS THE HOME OF MANY FISHING FAMILIES MAYOR ROSEMARY TIERNEY WANTS THE TOWN DECLARED A DISASTER AREA YESTERDAY PRESIDENT CLINTON OFFERING 30 MILLION IN FEDERAL AID TO THE INDUSTRY SAID FISHING IN NEW ENGLAND IS IN VIRTUAL COLLAPSE BUT WHAT MOST CRABS NEW ENGLANDERS GENERALLY ARE THE CHANGES IN THE MARKETPLACE NO LONGER IS SHOPPING FOR SEAFOOD OR ORDERING FISH IN A RESTAURANT A SIMPLE TASK TODAY IT'S MORE LIKE TAKING A CLASS IN MARINE BIOLOGY AS DEEPSEA DELICACIES ONCE SCORNED SHOW UP ON ICE AND ON DINNER TABLES AT MR WHITE'S RESTAURANT YOU CAN DINE ON GRILLED SKATE SPARERIBS SLICED FROM THE CARCASS OF A THORNY SKATE NOT LONG AGO THIS VORACIOUS FISH WITH EYES ON THE TOP OF ITS HEAD AND SKIN LIKE A ROSEBUSH WAS CURSED BY FISHERMEN AND THROWN OVERBOARD AS TRASH FISH AT SKIPJACK'S SEAFOOD EMPORIUM IN CAMBRIDGE COD IS A NOSHOW ON THE LUNCHEON BUFFET IN ITS PLACE IS A GOLDEN MOUND OF DEEPFRIED SMELTS SARDINELIKE FISH POPULAR ELSEWHERE BUT NEW TO SKIPJACK'S AL BURNS ISN'T INTERESTED THEY LOOK DISGUSTING SMALL AND WIMPY SAYS MR BURNS A HARVARD UNIVERSITY EQUIPMENT BUYER BUT AFTER A FEW REASSURING WORDS FROM CHEF ANDREW WILKINSON MR BURNS GOES FOR THE BAIT I'D NEVER SEEN THEM ON A MENU BEFORE HE SAYS THEY'RE VERY GOOD VERY TASTY ANOTHER NEWCOMER OCEAN CATFISH ALSO KNOWN AS WOLFFISH IT'S A SWEET GOODTASTING FISH SAYS ROGER BERKOWITZ OWNER OF LEGAL SEAFOODS RESTAURANTS BUT PEOPLE ENVISION IT WITH WHISKERS AS A SCAVENGER THEY JUST FEEL FUNNY ABOUT IT IN SOME PLACES YOU WILL FIND POUT ALSO KNOWN AS CONGO EEL AT 299 A POUND POUT IS ONE OF THE BEST BARGAINS AROUND BUT FILLETS TWO FEET LONG AND TWO INCHES WIDE KINK AND CURL WHEN COOKED SOME CHEFS WHACK IT WITH THE SIDE OF A KNIFE TO RELAX IT SAYS MR COONS GOING WITH THE FLOW WE'RE VENTURING INTO NEW GROUND SAYS MATTHEW FARO RETAIL MANAGER AT BAY STATE LOBSTER CO WHERE COD SALES ARE HALF WHAT THEY WERE A YEAR AGO YOU BETTER BE WILLING TO CHANGE OR YOU'LL BE SWALLOWED UP BUT IN NEW ENGLAND KNOWN FOR ITS LOVE OF BLAND FOODS TRADITIONS DIE HARD WOLFFISH THAT'LL NEVER SELL BELIEVE ME AND WHO WANTS TO BUY EEL IT SOUNDS DISGUSTING SAYS TOM DILLON A RETIRED TEACHER ON CAPE COD WHO HAS EATEN THE PENINSULA'S NAMESAKE FOR YEARS HADDOCK AND COD ARE PLEASING TO THE EAR I'M NOT A PRUDE BUT I AM A FUSSY EATER COD AND HADDOCK STILL SHOW UP IN NEW ENGLAND MARKETS BUT OFTEN THEY COME FROZEN FROM ICELAND NORWAY AND RUSSIA WHERE STOCKS ARE MORE ABUNDANT FRESH RETAIL COD PRICES JUMPED TO ALLTIME HIGHS AT CERTAIN TIMES THIS WINTER TO AS MUCH AS 9 A POUND AND ARE EXPECTED TO CLIMB HIGHER AND HADDOCK ANOTHER NEW ENGLAND FAVORITE EVEN MORE IMPERILED THAN COD IS PRICIER STILL ONE REASON FOR THE COD'S DECLINE IS THE STAR WARSLIKE SATELLITEBASED NAVIGATIONAL EQUIPMENT THAT GUIDES BOATS UNERRINGLY TO THEIR PREY I BELIEVE IT IS NOW POSSIBLE TO CATCH THE LAST HADDOCK IN THE OCEAN SAYS COMMERCIAL FISHERMAN JOHN WILLIAMSON OF KENNEBUNK MAINE WE ARE WRENCHING THE SYSTEM OUT OF BALANCE TO RESTORE COD AND OTHER BOTTOMFEEDERS TO NEW ENGLAND WATERS THE FEDERAL GOVERNMENT HAS IMPOSED A MORATORIUM ON NEW FISHING PERMITS AND A 50 REDUCTION IN THE DAYS FISHERMEN CAN SPEND AT SEA EVEN SO MR COONS THINKS IT COULD TAKE 15 TO 20 YEARS FOR COD TO RECOVER IN THE MEANTIME FISHERMEN AND PORTS WILL BE HURT THE NEW FISH ON THE MARKET MAY HELP TO SOME EXTENT BUT THEY HAVE PROBLEMS OF THEIR OWN CONSIDER THE SPINY DOGFISH A COMMON NEW ENGLAND SHARK INCREASINGLY POPULAR AMONG EXPORTERS IT'S A SLOWGROWING FISH SAYS MR COONS IT GIVES BIRTH TO ONLY A FEW YOUNG A YEAR THE MARKET PREFERS FEMALES BECAUSE THEY ARE LARGER IT HAS ALL THE INGREDIENTS OF A SPECIES THAT COULD BE EASILY AND QUICKLY OVERFISHED AND THEN THERE'S THE PROBLEM OF GETTING PEOPLE TO EAT SUCH THINGS TOO MANY PEOPLE EAT WITH THEIR EARS SAYS MR BERKOWITZ WHO WOULD LIKE TO BRING MORE POETRY TO SEA NAMES HAKE FOR INSTANCE MR BERKOWITZ SAYS IT WOULD SELL BETTER WERE IT CALLED GOLDEN FILLETS A LITTLE LINGUISTIC LEGERDEMAIN HAS WORKED FOR OTHERS PARTICULARLY THE ORANGE ROUGHY AN AUSTRALIAN FISH POPULAR IN THE US I HAVE TO HAND IT TO THE AUSTRALIANS SAYS MR BERKOWITZ BECAUSE THEY KNOW HOW TO MARKET IT YOU KNOW WHAT THE NAME OF THE FISH IS IN AUSTRALIA THE ANSWER SLIMEHEADS 9403220056 940322 INTERNATIONAL BRIEF TESCO PLC SMALL' INVESTMENT PLANNED IN HUNGARIAN CHAIN GLOBAL BRITISH SUPERMARKET OPERATOR TESCO PLC SAID THAT IT IS IN TALKS TO INVEST ABOUT 12 MILLION 179 MILLION IN GLOBAL TH A MAJOR HUNGARIAN REGIONAL CHAIN THAT OPERATES 43 STORES WITH A TOTAL OF 100000 SQUARE FEET THIS INVESTMENT BY TESCO ALTHOUGH SMALL WILL PROVIDE THE COMPANY WITH A STAKE IN A DEVELOPING MARKET THE COMPANY SAID TESCO SAID IT WILL SUBSCRIBE FOR SHARES IN GLOBAL AS PART OF A CAPITALRAISING EXERCISE WHICH WILL BE DONE AT THE SAME TIME AS THE COMPANY'S FLOTATION ON THE BUDAPEST STOCK EXCHANGE THE FLOTATION IS EXPECTED TO TAKE PLACE IN MIDAPRIL AS PART OF THE GOVERNMENT'S PRIVATIZATION PROGRAM AFTER THIS TESCO SAID IT WILL CONTROL 45 OF GLOBAL'S SHARES 9403220055 940322 TECHNOLOGY XEROX PICKS EDS FOR COMPUTER PACT GM SUBSIDIARY TO RECEIVE CONTRACT THAT MAY TOTAL 3 BILLION OVER 10 YEARS BY LAURIE HAYS AND KYLE POPE STAFF REPORTERS OF THE WALL STREET JOURNAL XEROX CORP SELECTED ELECTRONIC DATA SYSTEMS TO MANAGE ITS COMPUTER SYSTEMS AND DATA CENTERS IN A MUCHSOUGHTAFTER CONTRACT THAT MAY TOTAL AS MUCH AS 3 BILLION OVER 10 YEARS THE SELECTION DEALT A BLOW TO INTERNATIONAL BUSINESS MACHINES CORP WHICH HAS BEEN PUSHING HARD IN THE SERVICES BUSINESS AND HAD BEEN VIEWED IN SOME QUARTERS AS A FRONTRUNNER ALONG WITH BIDDING PARTNER AMERICAN TELEPHONE & TELEGRAPH CO IBM APPARENTLY LOST OUT ON PRICING AND A PERCEIVED WEAKNESS IN ITS ABILITY TO RUN A COHESIVE WORLDWIDE OPERATION ACCORDING TO THOSE WHO HAD BEEN FOLLOWING THE DEAL XEROX AND EDS A DALLASBASED UNIT OF GENERAL MOTORS CORP HOPE TO SIGN A FINAL CONTRACT BY THE SUMMER ANALYSTS NOTED THAT THE DEAL RANKS AS ONE OF THE LARGEST EVER FOR SUCH OUTSOURCING CONTRACTS AND INVOLVES A CLIENT COMPANY LONG RESPECTED FOR ITS OWN INTERNAL TECHNOLOGY OPERATIONS PATRICIA M WALLINGTON XEROX'S CHIEF INFORMATION OFFICER AND THE TOP NEGOTIATOR IN THE OUTSOURCING TALKS IS WELLKNOWN IN INFORMATIONMANAGEMENT CIRCLES AS ONE THE TOP EXECUTIVES IN HER FIELD THE FACT THAT XEROX BASED IN STAMFORD CONN WOULD MOVE TO ESSENTIALLY SPIN OFF ITS COMPUTER OPERATIONS MAY CLEAR THE WAY FOR OTHER BLUECHIP COMPANIES WARY OF TAKING SUCH A STEP OTHER PROMINENT OUTSOURCING DEALS ARE IN THE WORKS AT DUPONT CO AND DELTA AIR LINES IN THE XEROX PACT EDS MAY HAVE SIMPLY BEEN ABLE TO UNDERBID IBM AND PARTNER AT&T WHILE STILL BEING ABLE TO TURN A PROFIT EDS'S CONSULTING BUSINESS HAS BEEN GROWING AT A STRONG RATE WHILE IBM IS IN THE MIDST OF LAYING OFF 35000 WORKERS THIS YEAR AND AT&T IS IMPOSING CUTBACKS OF ITS OWN AS PART OF THE DEAL EDS IS EXPECTED TO PAY XEROX ABOUT 100 MILLION FOR THE COMPUTER OPERATIONS IT WILL TAKE OVER AND IT HAS AGREED TO TAKE ON ABOUT 2000 OF THE 2700 XEROX EMPLOYEES WHO WORK IN THAT AREA THIS WAS SUCH A LARGE ATTRACTIVE DEAL THE PRICING WAS VERY AGGRESSIVE SAID JULIE SCHWARTZ AN ANALYST AT MARKET RESEARCHER DATAQUEST ADDING THAT THE WINNER HAD ANOTHER ADVANTAGE EDS IS TRULY GLOBAL THAT'S WHY THEY WERE CHOSEN IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GM'S CLASS E STOCK WHICH REPRESENTS A SHARE IN EDS'S EARNINGS CLOSED AT 34125 A SHARE UP 625 CENTS XEROX CLOSED AT 99125 A SHARE DOWN 875 CENTS WHILE IBM CLOSED AT 58625 A SHARE UP 150 XEROX EXPECTS SIGNIFICANT COST SAVINGS BY HIRING A SPECIALTY COMPANY TO PERFORM DAYTODAY COMPUTER OPERATIONS BUT SOME IMPORTANT DETAILS STILL MUST BE WORKED OUT INCLUDING THE TOTAL PRICE AND THE EXACT LENGTH OF THE CONTRACT WHICH COULD RUN EIGHT TO 10 YEARS XEROX EXECUTIVES SAID XEROX DECLINED TO COMMENT ON THE AMOUNT OF THE COST SAVINGS BUT SAID THE WORKFORCE REDUCTION FROM EMPLOYEES WHO MOVE TO EDS WILL BE IN ADDITION TO THE 10000 ALREADY TARGETED FOR LAYOFFS IN A RESTRUCTURING PLAN ANNOUNCED LAST YEAR THE EDS AGREEMENT IS EXPECTED TO COVER FOUR FUNCTIONS DATA CENTER OPERATIONS VOICE AND DATA TELECOMMUNICATIONS SYSTEMS SUPPORT FOR DESKTOP COMPUTERS AND SOME BUSINESSSUPPORT APPLICATIONS XEROX WILL CONTINUE TO HANDLE STRATEGIC TECHNOLOGY SUCH AS DESIGNING THE PROGRAMS ITS SALESMEN OR CUSTOMER SERVICE CENTERS USE IN THE FIELD THE XEROX DEAL IS CLEARLY A COUP FOR EDS THE COMPANY WHICH WAS CRITICIZED BY SOME ANALYSTS LAST YEAR AFTER RUNNING INTO A SHORTAGE OF NEW CONTRACTS HAS BEEN ON A ROLL IN 1994 STEPHEN T MCCLELLAN AN ANALYST AT MERRILL LYNCH & CO IN SAN FRANCISCO ESTIMATES THAT THE COMPANY HAS BOOKED 25 BILLION IN NEW BUSINESS THIS YEAR INDEPENDENT OF THE XEROX WORK IN 1993 EDS GENERATED ABOUT 7 BILLION IN NEW BUSINESS AT IBM BY CONTRAST THE RAPIDLY GROWING SERVICES UNIT INTEGRATED SYSTEMS SOLUTIONS CORP HAD REVENUE OF 35 BILLION LAST YEAR BUT THE QUESTION REMAINS WHETHER INTEGRATED SYSTEMS CAN COMPETE AGAINST THE LIKES OF EDS A LEANER AND MORE EFFICIENT ORGANIZATION THAT CAN OFFER LOWER PRICES THE XEROX CONTRACT MAY SHOW THAT IBM'S MASSIVE RESTRUCTURING PROBLEMS HAVE LEFT IT UNABLE TO AFFORD LOW PROFIT MARGINS ON SUCH CONTRACTS ANALYSTS SAID THEY SAY BIG BLUE'S HOPES FOR WINNING THE XEROX BUSINESS FELL APART AFTER IBM ASKED FOR FURTHER PRICE CONCESSIONS ACCORDING TO THESE REPORTS TOP IBM EXECUTIVES INCLUDING CHAIRMAN LOUIS V GERSTNER JR FELT THAT THE COMPANY HAD UNDERBID ON PREVIOUS COMPUTER SERVICES DEALS AND WAS PARTICULARLY SENSITIVE ABOUT A REPEAT PERFORMANCE PAUL ALLAIRE CHAIRMAN OF XEROX CALLED MR GERSTNER SUNDAY NIGHT TO DELIVER THE BAD NEWS 9403220054 940322 MARKETING BRIEF VIACOM INC NICKELODEON CABLE TO INVEST IN PRESCHOOL PROGRAMMING VIACOM INC'S NICKELODEON CABLE CHANNEL SAID IT WOULD INVEST 30 MILLION OVER THREE YEARS IN DEVELOPING AND PRODUCING ORIGINAL PROGRAMMING FOR ITS PRESCHOOL PROGRAMMING BLOCK CALLED NICK JR THE INVESTMENT THE LARGEST OF ITS KIND FOR THE 15YEAROLD NETWORK INCLUDES AN AGREEMENT WITH JIM HENSON PRODUCTIONS AN INDEPENDENT FILM TV AND VIDEO PRODUCTION COMPANY TO CREATE ORIGINAL PROGRAMMING AND CHARACTERS FOR NICK JR THE PLAN CALLS FOR NICK JR TO ADD AT LEAST ONE HOUR OF ORIGINAL PROGRAMMING EACH YEAR FOR THE NEXT THREE YEARS THE NICK JR BLOCK CREATED IN 1986 AIRS 9 AM TO 2 PM WEEKDAYS FOR PRESCHOOLERS PARENTS AND OTHERS WHO PROVIDE CARE 9403220053 940322 NEW YORK'S CITY COUNCIL VOTES TO EXTEND RENT LAWS THE COUNCIL ALSO VOTED 2818 TO ADOPT A MEASURE THAT WOULD LIMIT THE RIGHTS OF CERTAIN WEALTHY INDIVIDUALS AND FAMILIES TO TAKE ADVANTAGE OF THESE LAWS THE MEASURE CALLS FOR APARTMENTS THAT RENT FOR 2000 OR MORE A MONTH AFTER APRIL 1 1994 TO BE DEREGULATED ONCE THEY ARE VACATED OR THEIR LEASES EXPIRE IF THESE UNITS ARE OCCUPIED BY HOUSEHOLDS WHOSE INCOME EXCEEDED 250000 A YEAR FOR THE PREVIOUS TWO CALENDAR YEARS AS PREVIOUSLY REPORTED NEW YORK STATE LEGISLATORS LAST YEAR ENACTED A LAW AFFECTING WEALTHY INDIVIDUALS WHOSE RENT EXCEEDED 2000 A MONTH AS OF OCT 1 1993 THE CITY COUNCIL'S MEASURE EXTENDS THE DEADLINE FOR SIX MORE MONTHS NEW YORK CITY HOUSING EXPERTS SAY THAT THE DEREGULATION MEASURE WILL AFFECT FEWER THAN 1 OF THE MORE THAN ONE MILLION RENTREGULATED HOUSEHOLDS THROUGHOUT THE CITY'S FIVE BOROUGHS LANDLORDS AND OTHER OPPONENTS OF RENT REGULATION HAD ALSO BACKED OTHER PROPOSALS WHICH WERE REJECTED THAT WOULD HAVE FURTHER RESTRICTED RENT REGULATION NEW YORK CITY'S RENT LAWS WERE THE SUBJECT OF A FRONT PAGE WALL STREET JOURNAL ARTICLE MONDAY 9403220052 940322 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 5/16 LOW 3 3/8 NEAR CLOSING BID 3 3/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 355 30 TO 44 DAYS 357 45 TO 59 DAYS 367 60 TO 89 DAYS 377 90 TO 119 DAYS 387 120 TO 149 DAYS 393 150 TO 179 DAYS 4 180 TO 239 DAYS 415 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 364 30 DAYS 376 60 DAYS 387 90 DAYS CERTIFICATES OF DEPOSIT 292 ONE MONTH 304 TWO MONTHS 318 THREE MONTHS 342 SIX MONTHS 378 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 355 ONE MONTH 380 THREE MONTHS 405 SIX MONTHS BANKERS ACCEPTANCES 355 30 DAYS 368 60 DAYS 379 90 DAYS 392 120 DAYS 397 150 DAYS 402 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 5/8 3 1/2 ONE MONTH 3 13/16 3 11/16 TWO MONTHS 3 15/16 3 13/16 THREE MONTHS 4 1/16 3 15/16 FOUR MONTHS 4 1/8 4 FIVE MONTHS 4 3/16 4 1/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 5/8 ONE MONTH 3 15/16 THREE MONTHS 4 3/16 SIX MONTHS 4 11/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 580 JAPAN 3 SWITZERLAND 750 BRITAIN 525 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY MARCH 21 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 361 13 WEEKS 390 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 777 60 DAYS 782 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 775 60 DAYS 784 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 580 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 280 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403220051 940322 REP OBEY PICKED TO LEAD APPROPRIATIONS COMMITTEE WASHINGTON THE HOUSE DEMOCRATIC LEADERSHIP BREAKING WITH TRADITION REACHED OVER LAWMAKERS WITH MORE SENIORITY TO SELECT WISCONSIN REP DAVID OBEY AS THE NEXT CHAIRMAN OF THE APPROPRIATIONS COMMITTEE THE ACTION WHICH STILL MUST BE RATIFIED BY THE FULL DEMOCRATIC CAUCUS TOMORROW OPENS THE DOOR TO LANDMARK CHANGE IN AN OFTEN INSULAR COMMITTEE WITH IMMENSE POWER OVER FEDERAL SPENDING AND PRESIDENT CLINTON'S INVESTMENT AGENDA THE 55YEAROLD MR OBEY WON HANDILY IN A CLOSEDDOOR SESSION OF THE LEADERSHIP'S STEERING AND POLICY COMMITTEE WHEN VOTECOUNTING WAS CUT OFF BECAUSE HE HAD ACHIEVED A MAJORITY HE HAD A BETTER THAN 21 LEAD OVER HIS MORE SENIOR RIVAL REP NEAL SMITH OF IOWA MR SMITH CAN CONTEST THE DECISION IN THE FULL CAUCUS BUT MR OBEY'S VICTORY WAS A BITTER SETBACK FOR THE THE IOWAN WHO CELEBRATES HIS 74TH BIRTHDAY TOMORROW THE VICTOR WILL HAVE THE TITLE ASSOCIATE CHAIRMAN IN DEFERENCE TO THE PANEL'S AILING CHAIRMAN WILLIAM NATCHER D KY BUT GIVEN MR NATCHER'S CONDITION AND AGE 84 THE VOTING THIS WEEK IS TANTAMOUNT TO THE SELECTION OF A NEW CHAIRMAN FOR AT LEAST THE REMAINDER OF THIS CONGRESS 9403220050 940322 BUSINESS BRIEF MCI COMMUNICATIONS CORP VIRGINIA IS URGED TO PERMIT NEW RIVALS FOR BELL ATLANTIC MCI COMMUNICATIONS CORP HAS ASKED STATE REGULATORS IN VIRGINIA TO ALLOW NEW RIVALS TO COMPETE WITH BELL ATLANTIC CORP IN PROVIDING SHORTHAUL TOLL CALLS IN THE STATE SUCH A MOVE WOULD ALLOW MCI AMERICAN TELEPHONE & TELEGRAPH CO AND SPRINT CORP TO PROVIDE TOLL SERVICE IN COMPETITION WITH BELL ATLANTIC CURRENTLY LONGDISTANCE COMPANIES ARE PROHIBITED BY REGULATORS FROM PROVIDING SUCH SERVICES IN COMPETITION WITH THE PHILADELPHIABASED REGIONAL BELL TELEPHONE COMPANY WHICH PROVIDES LOCAL PHONE SERVICE THROUGHOUT THE MIDATLANTIC REGION IN ITS FILING WITH STATE REGULATORS MCI SAID THAT ONLY FIVE STATES INCLUDING VIRGINIA PROHIBIT SHORTHAUL COMPETITION ONE OF THE OTHER FOUR STATES IS NEW JERSEY ALSO IN BELL ATLANTIC'S TERRITORY 9403220049 940322 NEW PRESCRIPTION RATIONED HEALTH CARE HELPS OREGON'S POOR BUT REAL TEST IS AHEAD SOME DOCTORS ALREADY RESIST TREATMENT LIMITATIONS IN TWOMONTHOLD PLAN TOUGH ISSUE TERMINAL CASES BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL PORTLAND ORE JANET PHILLIPS A 60YEAROLD GRANDMOTHER IS ONE OF OREGON'S WORKING POOR UNABLE TO AFFORD HEALTH INSURANCE SHE EARNS LESS THAN 500 A MONTH DESPITE 12HOUR SHIFTS AT A SNACK BAR SHE USED TO CLOSE DEEP CRACKS IN HER HANDS AND FEET WITH SUPERGLUE BUT LAST MONTH MRS PHILLIPS SIGNED UP FOR OREGON'S NEW HEALTH PLAN FOR THE POOR WHICH EXTENDS COVERAGE TO 120000 PREVIOUSLY UNINSURED PEOPLE BY EXPLICITLY RATIONING THE AMOUNT OF CARE TO ALL ITS MEMBERS NO LONGER WILL SHE HAVE TO RESORT TO DESPERATE REMEDIES SHE WILL RECEIVE FREE CARE FOR HER AILMENTS WHICH INCLUDE HEART DISEASE DIABETES AND A RECENT BOUT OF VERTIGO I HAVE TO STAY WELL SHE SAYS COMPLAINING OF DIZZINESS AS SHE PERCHES ON AN EXAMINING TABLE AT OREGON HEALTH SCIENCES UNIVERSITY HOSPITAL HERE I'VE WORKED ALL MY LIFE RAISED FIVE CHILDREN AND I'M NOW RAISING TWO GRANDCHILDREN I HOPE THIS PLAN WORKS AFTER YEARS OF DEBATE AND TWO MONTHS OF OPERATION THE BENEFITS AND PROBLEMS OF THE OREGON HEALTH PLAN ARE MANIFEST TWO CLEAR BENEFITS HUGE NUMBERS OF WORKING POOR ARE GETTING THEIR FIRST REGULAR HEALTH CARE AND STATE SPONSORSHIP HAS SO ALTERED MEDICAL ECONOMICS THAT PUBLIC AND PRIVATE HEALTH PLANS ARE VYING FOR POOR PATIENTS RATHER THAN SHUNNING THEM HOWEVER THE PLAN IS LIKELY TO RAISE AN OUTCRY AS SICK AND DYING PATIENTS FIND OUT THAT IT EXCLUDES SOME TREATMENTS SUCH AS HEROIC MEASURES FOR INCURABLE CANCER THE OREGON PLAN DOES ALLOW SOME LEEWAY THOUGH THAT COULD LET DOCTORS STRETCH THE DEFINITIONS OF INCLUDED TREATMENTS AND POSSIBLY UNDERMINE THE PLAN'S FISCAL FOUNDATION DOCTORS MAY BE ABLE TO CLAIM THAT CHEMOTHERAPY FOR A TERMINAL CANCER PATIENT FOR EXAMPLE ISN'T A HEROIC EFFORT TO CURE BUT JUST INTENDED TO PROVIDE COMFORT AND RELIEVE PAIN AND SO IS COVERED THE CUTOFF OF TERMINALSTAGE TREATMENT WILL BE IGNORED OR OBVIATED AT EVERY TURN PREDICTS WILLIAM FLETCHER A CANCER SURGEON BUT MOST OREGON RESIDENTS ARE STOICALLY ACCEPTING SOMETHING MOST AMERICANS SEEM RELUCTANT TO CONFRONT THE NEED TO RATION HEALTH CARE FOR THE UNINSURED POOR WHO OTHERWISE MIGHT NOT GET CARE HALF A MILLION PEOPLE ONESIXTH OF THE STATE'S POPULATION WERE UNINSURED SO AFTER THE FEDERAL GOVERNMENT GAVE THE GREEN LIGHT OREGON DESPITE ITS PROJECTED BUDGET DEFICIT REVAMPED ITS MEDICAID PROGRAM ON FEB 1 AS A FIRST STEP TOWARD UNIVERSAL ACCESS TO CARE BUT TO FINANCE HIGHPRIORITY ITEMS SUCH AS PRENATAL SERVICES PRESCRIPTION DRUGS AND DENTAL CARE OREGON'S REFORMERS HAD TO SACRIFICE THINGS DEEMED UNNECESSARY FUTILE OR COSMETIC IT'S A SOCIAL EXPERIMENT ADMITS PAUL KIRK A PHYSICIAN AND MEMBER OF THE COMMISSION THAT DRAFTED THE OREGON HEALTH PLAN WE'RE ANXIOUS TO SEE IF IT IMPROVES OPPORTUNITIES FOR CARE AND IF THERE'S DAMAGE BY NOT FUNDING ITEMS AT THE BOTTOM OF THE LIST ADDS RICK WOPAT ANOTHER PHYSICIAN THE INTENT ISN'T TO DEPRIVE PEOPLE OF LIFELENGTHENING BENEFITS BUT TO MAKE SURE THAT THE MONEY IS SPENT IN THE MOST EFFECTIVE WAY HIGH ON A HILL OVERLOOKING PORTLAND OREGON HEALTH SCIENCES UNIVERSITY WHICH RUNS THE STATE'S ONLY MEDICALSCHOOL HOSPITAL TREATS SO MANY POOR PATIENTS THAT IT HAS HAD TO WRITE OFF NEARLY A THIRD OF ITS 370 MILLION IN ANNUAL BILLINGS NOW DOCTORS HERE HOPING TO STABILIZE PATIENT CARE AND HOSPITAL REVENUE ARE SIGNING UP MANY OF ITS INDIGENT PATIENTS FOR THE OREGON PLAN I'LL BE ABLE TO OFFER PATIENTS MORE REGULAR CARE TESTS AND MEDICATIONS WITHOUT WORRYING THAT IT'S GOING TO BANKRUPT THEM SAYS GREGG COODLEY BUSTLING AROUND HIS INTERNALMEDICINE CLINIC HE GIVES MRS PHILLIPS A PRESCRIPTION TO STEADY HER DIZZY SPELLS DR COODLEY WANTED ME TO LOOK INTO THE NEW PLAN BECAUSE MY BILLS ARE ASTRONOMICAL AND TIMES HAVE BEEN TOUGH SHE SAYS SHE USED TO PAY BILLS OUT OF POCKET NOW SHE CAN GET CHECKUPS FREE ALSO RECENTLY SIGNED UP IS ANOTHER OF DR COODLEY'S PATIENTS DAVID JONES A UTILITIES INSPECTOR THE STOUT 41YEAROLD MR JONES QUIT WORK AFTER HIS DIABETES SPIRALED OUT OF CONTROL AND INFLICTED PAINFUL NERVE DAMAGE JOBLESS AND HIS UNEMPLOYMENT BENEFITS EXHAUSTED MR JONES PREVIOUSLY EXISTED ON A FALSE SENSE OF SECURITY RUNNING RISKS AND THINKING I'D NEVER GET SICK HE SAYS IT'S STUPID NOW HE IS GRATEFUL FOR A CHANCE TO SEE DR COODLEY AND GET HIS BLOOD SUGAR STABILIZED IN THE OREGON HEALTH SCIENCES UNIVERSITY EMERGENCY ROOM OR ER MOHAMUD DAYA AN ER SPECIALIST LIKES THE NEW PLAN BECAUSE IT IS LIKELY TO STEM THE TIDE OF POOR AND UNINSURED WHO USE THE ER AS THEIR DOCTOR A COSTLY INEFFICIENT HABIT FOR EXAMPLE JOHN RENOUD AN UNEMPLOYED 27YEAROLD CONSTRUCTION WORKER RECENTLY MADE HIS THIRD ER VISIT IN SIX MONTHS FOR A SPRAINED ANKLE I CAN'T AFFORD 60 MEDICAL BILLS RENT AND FOOD ON THE TABLE HE SAYS GRASPING A HEALTHPLAN APPLICATION BUT THE LADY AT THE HOSPITAL TOLD ME THAT WITH ZERO INCOME I QUALIFY TODAY UNDER THE STATE'S NEW PLAN HE WILL GET REGULAR FREE THERAPY AT THE HOSPITAL'S SPORTSMEDICINE CLINIC AND FREE CHECKUPS FOR HIS INFANT SON IN ITS FIRST PHASE THE OREGON PLAN BROADENS MEDICAID ELIGIBILITY PUTS PATIENTS INTO COSTCONSCIOUS MANAGEDCARE PLANS AND LIMITS CARE TO A LIST OF PRIORITY SERVICES HEADING THAT LIST ARE OBVIOUS ITEMS SUCH AS LIFESAVING TREATMENT FOR HEAD INJURY DIABETES APPENDICITIS AND TUBERCULOSIS EXCLUDED ARE TREATMENTS FOR COLDS AND FLU MOST PLASTIC SURGERY AND HEROIC TREATMENTS FOR THE INCURABLY ILL UNLIKE CONVENTIONAL MEDICAID THE NEW PLAN HAS SIMPLE ELIGIBILITY RULES ANYONE EARNING AT OR BELOW FEDERAL POVERTY LEVEL 991 A MONTH FOR A FAMILY OF THREE CAN QUALIFY MEMBERS DON'T HAVE TO SELL ASSETS SUCH AS A HOUSE OR CAR THESE LIBERAL CRITERIA ARE EXPECTED TO SWELL OREGON'S MEDICAID ROLLS NOW TOTALING 275000 BY ADDING 120000 OF THE WORKING POOR STARTING IN 1995 THE PLAN WILL ALSO EMBRACE THE ELDERLY THE DISABLED AND FOSTER CHILDREN LIVING IN POVERTY IN 1997 AND 1998 THE PLAN WILL BE EXPANDED TO COVER ABOUT 300000 OREGONIANS WHO ARE WORKING AND UNINSURED THAT IS IF STATE LEGISLATORS VOTE TO REQUIRE AN EMPLOYER MANDATE WHICH IS UNPOPULAR WITH SMALL BUSINESS HERE THROUGH 1995 THE PLAN IS EXPECTED TO COST 169 MILLION WITH THE COSTS SPLIT 63 FEDERAL AND 37 STATE TO FINANCE THE STATE'S SHARE OREGON LAWMAKERS VOTED 21 MILLION FROM THE STATE GENERAL FUND AND LEVIED A NEW CIGARETTE TAX OF 10 CENTS A PACK THAT IS EXPECTED TO YIELD 44 MILLION THANKS TO THE TAX THE STATE IS OFFERING DOCTORS HIGHER RATES THAN DID THE OLD MEDICAID PLAN WHICH PAID ABOUT A THIRD OF THEIR USUAL FEES NOW OREGON PAYS MANAGEDCARE PLANS A CAPITATION RATE A MONTHLY FEE PER PATIENT THAT IS 50 TO 60 OF DOCTORS' FEES SUCH RATES HAVE PROVED A POTENT LURE FOR DOCTORS NOW PLANS ARE BEATING DOWN OUR DOORS SAYS JEAN THORNE WHO HEADS OREGON'S MEDICAID PROGRAM NEARLY TWO DOZEN PREPAID PLANS INCLUDING EVERY HEALTHMAINTENANCE ORGANIZATION IN THE STATE HAVE SIGNED UP FOR THE PLAN OREGON'S POOR HAVE A NEW CHOICE IN HEALTH CARE AND HEALTHCARE PROVIDERS THAT ONCE SERVED DISTINCT GROUPS OF PEOPLE ARE BATTLING FOR MARKET SHARE THERE'S THIS NEWFOUND ALTRUISM NOW THAT MONEY'S AROUND GRUMBLES TIM GOLDFARB DIRECTOR OF THE OREGON HEALTH SERVICES UNIVERSITY HOSPITAL WHICH IS PROUD OF ITS TRADITION OF INDIGENT CARE PEOPLE WHO REJECTED THE POOR ALL THOSE YEARS ARE NOW COMPETING WITH US FOR THEM THERE'S A CERTAIN RESENTMENT THAT'S LUDICROUS COUNTERS ROBERT PALLARI SENIOR VICE PRESIDENT OF MARKETING FOR LEGACY HEALTH SYSTEM A PORTLAND MANAGEDCARE COMPANY HE SAYS LEGACY ALREADY CARES FOR MANY POOR AND EXPECTS TO GAIN 20000 MORE PATIENTS UNDER THE NEW PLAN THE PLAN IS TAKING PEOPLE WHO HAVEN'T BEEN FULL PARTICIPANTS AND SAYING YOU CAN JOIN ANY HEALTH PLAN' IT'S THE ULTIMATE EMPOWERMENT ANNIE MOCKABEE MANAGER OF GOVERNMENT PROGRAMS FOR BLUE CROSS AND BLUE SHIELD OF OREGON SAYS PHONES AT HER COMPANY'S HMO HAVE BEEN RINGING OFF THE HOOK WE'RE DOING ORIENTATION FOR NEW MEMBERS ALL OVER THE STATE IN FIVE LANGUAGES RUSSIAN VIETNAMESE HMONG SPANISH AND CAMBODIAN SHE CONCEDES THAT COMMERCIAL HMOS MUST BECOME MORE SENSITIVE TO NEEDS OF THE POOR BUT SCOFFS AT THE IDEA OF MARKETSHARE WARS THERE ARE MORE THAN ENOUGH PATIENTS OUT THERE TO GO AROUND SHE SAYS THE DEBATE THAT LED TO THE NEW PLAN BEGAN IN 1987 WHEN A DYING BOY NAMED COBY HOWARD WAS DENIED A BONEMARROW TRANSPLANT FOR LEUKEMIA UNDER OREGON'S OLD MEDICAID PROGRAM TODAY THE HEALTH PLAN INCLUDES BONEMARROW TRANSPLANTS FOR LEUKEMIA AND OTHER COSTLY TRANSPLANTS FOR CURABLE PATIENTS THANKS TO IMPROVED SUCCESS RATES NOW 20MONTHOLD KEBRIN JONES WILL BE ELIGIBLE FOR A NEW LIVER JAUNDICED AND FRAGILE KEBRIN IS SUFFERING LIVER FAILURE DUE TO A VIRAL INFECTION CONTRACTED AT BIRTH OREGON WILL COVER HIS OPERATION EVEN THOUGH HE MUST BE FLOWN TO A PEDIATRIC TRANSPLANT CENTER IN CALIFORNIA KNOWING THE HEALTH PLAN COVERS THE TRANSPLANT IS A RELIEF SAYS LYNETTA JONES KEBRIN'S GRANDMOTHER SHE DONS A MASK TO COMFORT THE BOY WHO IS INSIDE AN ISOLATION UNIT BEDECKED WITH PURPLE TEDDY BEARS NOW SHE SAYS IT'S JUST A MATTER OF FINDING HIM AN ORGAN DONOR MANY DOCTORS ARE SO RELIEVED TO HAVE THEIR POOR PATIENTS BROUGHT UNDER THE PLAN THAT THEY DEFEND IT AGAINST CHARGES OF RATIONING IT SOUNDS TRITE BUT HEALTH CARE WAS ALREADY BEING RATIONED IF YOU WERE RICH YOU COULD GET EVERYTHING AND IF YOU WERE POOR YOU COULDN'T GET ANYTHING THAT WAS MORALLY AND ETHICALLY UNACCEPTABLE TO ME SAYS SIGLINDA JACOBSON A PORTLAND PHYSICIAN BUT FOR ALL THE PLAN'S BENEFITS ITS EXPLICIT RATIONING UPSETS DOCTORS LONG TRAINED TO DO EVERYTHING POSSIBLE FOR PATIENTS THE PROBLEM WITH OLD FEEFORSERVICE MEDICINE WAS THAT THE INCENTIVE WAS TO DO MORE DR COODLEY SAYS THE PROBLEM WITH CAPITATION OR ONE MONTHLY FEE FOR MANAGED CARE IS THAT THE INCENTIVE IS TO DO LESS HE ALSO WORRIES THAT PROFITMINDED HEALTH PLANS MAY CHERRYPICK HEALTHIER PEOPLE AND LEAVE THE UNIVERSITY THE HARDER CASES SPECIALISTS SUCH AS ALAN SEYFER A PLASTIC SURGEON ALSO ARE FINDING THAT THE PLAN LIMITS FUNDING OF THEIR SERVICES FOR THE POOR CHILDREN WITH CERTAIN BIRTH DEFECTS AREN'T COVERED BREAST RECONSTRUCTION ISN'T COVERED HE SAYS EVEN THOUGH MASTECTOMY IS A MUTILATING OPERATION WITH PROCEDURES BEING DENIED DR SEYFER ADDS PATIENTS WILL SOON BE UPSET WITH US IN SOME CASES HE SAYS I'LL JUST DO IT ANYWAY AND SUCK UP THE COSTS UNTIL THEY TELL ME TO STOP HIS DEPARTMENT IS TREATING SEVERAL WOMEN WHO HAVE HAD MASTECTOMIES WITH RECONSTRUCTIONS AND NOW ARE EVIDENTLY SICKENED BY SILICONE BREAST IMPLANTS SOME HAVE REQUESTED SURGICAL REMOVAL SOLELY FOR HEALTH REASONS AND GOT THE BUREAUCRATIC RUNAROUND IT TOOK KATHY DUBBS OF AZALEA ORE 6 1/2 WEEKS OF PERSISTENT PHONE CALLS AND FOUR REVERSED JUDGMENTS BY THE HEALTH BUREAUCRACY BEFORE HER INFLAMED AND LEAKY BREAST IMPLANTS WERE FINALLY REMOVED LAST WEEK HOWEVER TO SOME THE PLAN'S MOST TROUBLING ASPECT IS ITS CUTOFF OF HEROIC TREATMENTS LONGSHOT PROCEDURES SUCH AS BONEMARROW TRANSPLANTS OR STAYS IN THE INTENSIVECARE UNIT FOR THE INCURABLY ILL SUCH PATIENTS GET PALLIATIVE TREATMENT HOSPICE PROGRAMS COMFORT CARE AND PAIN REMEDIES BUT SOME DOCTORS ARE UNSURE WHERE TO DRAW THE LINE I TAKE CARE OF A LOT OF PATIENTS WITH HIV SAYS DR COODLEY WHO WONDERS WHEN AN AIDS PATIENT SHOULD BE CLASSIFIED AS TERMINAL IS THAT THE LAST TWO OR THREE MONTHS TWO TO THREE MONTHS MAY MEAN A LOT I'M A LITTLE WORRIED IN THE CASE OF CANCER THE PLAN DEFINES THE TRANSITION AS OCCURRING WHEN A PATIENT'S TUMOR HAS SPREAD AND THE CHANCE OF SURVIVING FIVE YEARS IS LESS THAN 5 PAUL KIRK WHO HELPED DRAFT THE OREGON PLAN SAYS ITS IMPLICIT ACCEPTANCE OF DEATH ISN'T HEARTLESS MORTALITY ISN'T AN OPTION IT'S A REALITY DR KIRK SAYS HE ADDS THAT NEW TREATMENTS CAN BE ADDED TO THE PLAN IF DOCTORS PRESENT COMPELLING DATA BUT WE CAN'T FIDDLE WITH THE LIST EVERY MONTH HE WARNS IT THROWS THE ACTUARIAL BASIS OF THE PLAN OUT THE WINDOW MEANWHILE MATTHEW BROUNS AN ONCOLOGIST PREDICTS WE'LL RUN INTO BATTLES WITH SOME PATIENTS WHO FEEL THEY'RE BEING RATIONED OUT OF CARE ONE OF HIS PATIENTS IS EVELYN DAVIS OF SPRINGFIELD ORE WHOSE DREAM OF BEING CURED OF COLON CANCER WAS SHATTERED IN JANUARY WHEN THE TUMOR RETURNED TO INVADE HER LIVER AND LYMPH NODES THOUGH DOCTORS DON'T CONSIDER HER CURABLE SHE WOULD LIKE AS MUCH TIME AS POSSIBLE WITH HER FIVE GRANDCHILDREN I SUPPOSE EVERYTHING'S GOT TO HAVE A LIMIT THE 57YEAROLD BABYSITTER SAYS BUT I WANT TO DO AS MUCH AS POSSIBLE SO DR BROUNS WON'T GIVE HER A HOSPICE REFERRAL AS THE OREGON HEALTH PLAN PRESUMABLY REQUIRES BUT INSTEAD ANOTHER ROUND OF CHEMOTHERAPY THOUGH HE FEARS THE PLAN MAY DENY REIMBURSEMENT HE VOWS I'M GOING TO TREAT HER NO MATTER WHAT 9403220048 940322 CREDIT MARKETS BOND PRICES FALL AS INVESTORS' MOOD TURNS SOUR FROM WAITING FOR FED TO SIGNAL ITS INTENTIONS BY GENE COLTER AND LAUREN YOUNG SPECIAL TO THE WALL STREET JOURNAL NEW YORK BOND TRADERS AND INVESTORS CAME TO WORK IN A BAD MOOD YESTERDAY AND NEITHER THEIR SPIRITS NOR TREASURY ISSUES MADE ANY GAINS PRICES FELL FROM THE START OF TRADING HERE THE SOUR SENTIMENT AND FALLING PRICES STEMMED FROM THE FRUSTRATION OF WAITING FOR ANOTHER SIGN FROM THE FEDERAL RESERVE AS TO WHERE IT WANTS SHORTTERM INTEREST RATES TO BE YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND DROPPED NEARLY 5/8 POINT OR NEARLY 625 FOR A BOND WITH A 1000 FACE VALUE TO 91 6/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 695 FROM 690 ON FRIDAY I BELIEVE STRONGLY THAT THE FEDERAL RESERVE IS FOLLOWING THE MARKETS RATHER THAN LEADING THEM IN TERMS OF INTEREST RATES SAID EDWARD RILEY CHIEF INVESTMENT OFFICER AT PRIVATE BANK IN SUMMING UP THE FEELING OF BEING CAST ADRIFT THAT HE AND MANY OTHER BIG BOND INVESTORS ARE EXPERIENCING PRIVATE BANK IS A MONEYMANAGEMENT ARM OF BANK OF BOSTON MANY ARE HOPING THE CENTRAL BANK WILL FINALLY GIVE A CLEAR SIGNAL OF ITS WANTS FOR MONETARY POLICY AS SOON AS TODAY WHEN THE BANK'S POLICYMAKING FEDERAL OPEN MARKET COMMITTEE MEETS THE FED CONTROLS MONETARY POLICY BY EXERTING PRESSURE ON SHORTTERM RATES THE FED LAST RAISED RATES ON FEB 4 TRADE WAS LIGHT THROUGHOUT THE DAY BUT WHAT TOOK PLACE WAS CLEARLY DOMINATED BY SELLERS AS FEW PLAYERS WERE WILLING TO TAKE ON NEW BONDS BEFORE AN FOMC MEETING AND LATE YESTERDAY MORNING MANY OF THE LEGION OF FRUSTRATED BOND PLAYERS ON WALL STREET BECAME EVEN MORE FRUSTRATED WHEN A STORY HIT THE DOW JONES CAPITAL MARKETS REPORT NEWS WIRE THAT SEEMED TO THEM TO INDICATE THE CENTRAL BANK WAS FAR FROM DECIDED ON WHAT IT WANTED TO DO WITH RATES DOW JONES CAPITAL MARKETS REPORT IS OWNED BY DOW JONES & CO PUBLISHER OF THIS NEWSPAPER THE DOW JONES STORY SAID SENIOR OFFICIALS AT THE FEDERAL RESERVE BANK OF NEW YORK WHICH EXECUTES THE CENTRAL BANK'S DAYTODAY CHORES IN THE MONEY AND BOND MARKETS HAVE BEEN POLLING THE 39 PRIMARY DEALERS OF GOVERNMENT SECURITIES AS TO WHAT THE FED SHOULD DO TO CALM THE BOND MARKET SINCE IT RAISED THE FEDERALFUNDS RATE THE RATE BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS FROM 3 TO 325 ON FEB 4 THE YIELD OF THE 30YEAR BOND HAS JUMPED MORE THAN 060 PERCENTAGE POINT BART SOTNICK A SPOKESMAN FOR THE FED SAID LATE YESTERDAY THAT WE HAVE NOT BEEN ASKING ANYTHING UNUSUAL THE 30YEAR BOND DOWN ALREADY BY AROUND 1/3 POINT FELL EVEN FURTHER YESTERDAY AFTER THE STORY RAN BUT BY THE AFTERNOON TRADERS AND ANALYSTS BEGAN TO HAVE SOME MISGIVINGS ABOUT THE IDEA THAT THE FED WAS DOING ANYTHING OTHER THAN ITS NORMAL ROUTINE AND PRICES CAME OFF THE LOWEST LEVELS AS DEALERS COVERED SHORT POSITIONS IN A SHORT SALE A TRADER OR INVESTOR SELLS A BORROWED SECURITY ON A BET PRICES WILL DROP COVERING THE SHORT MEANS BUYING SECURITIES TO REPLACE THE BORROWED ONES EXPLAINING WHY THE MARKET WAS ABLE TO STAGE A MILD RECOVERY LATE IN THE DAY ANDREW BRENNER VICE PRESIDENT IN GOVERNMENT SECURITIES AT NOMURA SECURITIES INTERNATIONAL INC SAID THE FED WAS ASKING WHAT WOULD STABILIZE THE MARKET THEY JUST WANT TO KNOW WHAT'S GOING ON THE STORY SUGGESTED THAT THE FED WAS ASKING SOME OF THESE KINDS OF QUESTIONS DURING ITS DAILY CALLS TO PRIMARY DEALERS EVERY MORNING THE NEW YORK FED'S OWN TRADERS TELEPHONE DEALERS TO CHAT INFORMALLY ABOUT MARKET CONDITIONS IN WHAT BOND DESKS CALL A MOMENTONTHEMARKET TALK MR BRENNER LIKE MANY OF HIS COLLEAGUES FIGURED THE RUMORS MAY HAVE BEEN SPARKED BY THESE CALLS THAT'S MORE OF A NORMAL KIND OF QUESTION MR BRENNER SAYS OF ASKING ABOUT WHAT MIGHT STABILIZE THE MARKET I'VE ANSWERED THEM NUMEROUS TIMES HE SAID WHILE TREASURY PLAYERS NORMALLY MIGHT NOT SPEND SO MUCH OF THE DAY ASSESSING THE VALUE OF THE FED'S CONVERSATIONS WITH THE DEALER COMMUNITY THEY WERE INCLINED TO DO SO YESTERDAY BECAUSE THE NEWS CAME BEFORE AN FOMC MEETING AND JUST ON THE HEELS OF WHAT SOME SAID WAS AN UNUSUAL ACT BY THE FED LAST WEEK LAST FRIDAY FED CHAIRMAN ALAN GREENSPAN CANCELED A SPEAKING ENGAGEMENT IN HOUSTON TO MEET WITH PRESIDENT CLINTON THOUGH THE WHITE HOUSE TRIED TO ASSURE THE MARKETS THAT THE PURPOSE OF THAT MEETING WASN'T TO TRY TO INFLUENCE THE FED'S DECISIONMAKING PROCESS BOND PLAYERS DIDN'T LIKE THE FEEL OF IT AND THEY ERASED GAINS MADE MIDWEEK WHEN LABOR DEPARTMENT REPORTS WERE RELEASED THAT SHOWED INFLATION UNDER CONTROL DOES THE PRESIDENT MEET ROUTINELY WITH THE FED CHIEF YES WAS THE FRIDAY MEETING ROUTINE NO SAID MICHAEL STRAUSS AN ECONOMIST AT YAMAICHI INTERNATIONAL AMERICA INC WHETHER TREASURY TRADERS AND BIG INVESTORS LIKE THE WAY THE FED IS HANDLING MONETARY POLICY OR NOT NONE WANT TO SEE THE FED BECOME BEHOLDEN TO THE POLITICS OF THE EXECUTIVE BRANCH MR STRAUSS EXPLAINED LIKE MOST OTHER ECONOMISTS FOLLOWING THE FED MR STRAUSS THINKS THAT THE CENTRAL BANK WILL RAISE RATES SOMETIME THIS WEEK OR SOON THEREAFTER WHILE THAT'S GENERALLY ANTICIPATED WHAT HASN'T BEEN NAILED DOWN IS HOW MUCH THE FED WILL RAISE RATES THE FED CONTROLS SHORTTERM RATES BY ADDING OR DRAINING ENOUGH RESERVES FROM THE BANKING SYSTEM TO CHANGE ITS TARGET FOR THE FEDERALFUNDS RATE SOME BANK WATCHERS SAY THE FOMC WILL VOTE TO RAISE IT ANOTHER 050 PERCENTAGE POINT WHILE ALMOST AS MANY EXPECT JUST A 025 PERCENTAGE POINT HIKE MR RILEY OF PRIVATE BANK WOULD LIKE TO SEE THE FEDERALFUNDS TARGET CLIMB TO 375 BUT HE ENVISIONS HOW THE POLITICALLY SENSITIVE FED COULD LIMIT ITSELF TO A QUARTERPOINT HIKE CLINTON WANTS NO HIKE GREENSPAN WANTS 50 BASIS POINTS MR RILEY EXPLAINED A BASIS POINT IS A HUNDREDTH OF A PERCENTAGE POINT THE COMPROMISE IS 25 BASIS POINTS AND CALL IT EVEN THE CLINTON ADMINISTRATION WHILE NEVER OPENLY CALLING FOR A LIMIT TO THE FED'S AUTONOMY HAS SAID THAT RAISING RATES AT THIS POINT COULD JEOPARDIZE THE HEADWAY THE ECONOMY HAS MADE BUT MR GREENSPAN AND ECONOMISTS HAVE GENERALLY DECRIED THE IDEA THAT RAISING RATES COULD PUT THE RECOVERY AT RISK STATING THAT THERE ARE SIGNS OF INCIPIENT PRICE PRESSURES IN THE ECONOMY IN THE AREAS WHERE WE'RE SEEING STRENGTH WE'RE STARTING TO SEE PRODUCERS ABLE TO RAISE PRICES SAID MR RILEY HE CITES THE AUTO STEEL LUMBER AND HOUSING INDUSTRIES AS EXAMPLES BOND BUYERS ABHOR INFLATION OR EVEN THE THREAT OF IT BECAUSE IT ERODES THE BUYING POWER OF SECURITIES WITH A FIXED RATE OF RETURN LIKE TREASURY SECURITIES AS IF THE WORRIES OVER WHAT THE FED WILL DO AREN'T ENOUGH THE TREASURY MARKET HAS TO MAKE ROOM FOR NEW SUPPLY THE TREASURY IS SLATED TO SELL 17 BILLION IN TWOYEAR NOTES TODAY AND 11 BILLION IN FIVEYEAR NOTES TOMORROW LATE YESTERDAY THE TWOYEAR NOTE WAS YIELDING 514 IN WHENISSUED TRADING WHILE THE FIVEYEAR NOTE WAS YIELDING 605 SEPARATELY THE TREASURY SOLD 13WEEK AND 26WEEK BILLS AT ITS REGULAR WEEKLY AUCTION HERE ARE THE RESULTS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED MARCH 24 THE 13WEEK BILLS MATURE JUNE 23 1994 AND THE 26WEEK BILLS MATURE SEPT 22 1994 DIGITAL EQUIPMENT CORP SURPRISED MARKET PARTICIPANTS YESTERDAY BY REDUCING THE SIZE OF ITS FIRST PLANNED OFFERING OF PREFERRED STOCK BY 100 MILLION TO 400 MILLION THE COMPUTER COMPANY'S OFFERING WAS PRICED WITH A DIVIDEND YIELD AT THE HIGH END OF EXPECTATIONS TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT WITH YIELD SPREADS OVER COMPARABLE TREASURY SECURITIES CHANGING LITTLE JUNK BOND MARKET TRADING WAS ALSO LIGHT WITH PRICES ENDING DOWN 1/4 TO 1/2 POINT DIGITAL EQUIPMENT'S DECISION TO CUT THE SIZE OF ITS DEAL DIDN'T AFFECT THE PLACEMENT OF THE OFFERING SAID BRADLEY JACK GLOBAL DEBT SYNDICATE MANAGER AT LEAD MANAGER LEHMAN BROTHERS INC HE SAID ABOUT 80 OF THE DEAL WAS SOLD TO RETAIL INVESTORS IT'S A GOOD TIGHTLY PRICED WELLDISTRIBUTED DEAL GIVEN THAT THIS MARKET IS TREACHEROUS HE SAID THE PREFERRED STOCK WAS PRICED AT PAR FOR AN 8875 DIVIDEND YIELD THE 16 MILLION SHARES WERE PRICED AT 25 EACH ORIGINALLY THE COMPANY HAD SAID IT WOULD SELL 20 MILLION SHARES PREFERRED STOCK IS LIKE A BOND IN THAT IT PAYS A FIXED DIVIDEND MUCH LIKE THE FIXED COUPON ON A BOND THE PREFERRED STOCK WHICH IS NONCALLABLE FOR FIVE YEARS IS RATED BA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP LAST WEEK S&P SAID DIGITAL HAS A NEGATIVE LONGTERM RATING OUTLOOK AND THAT CONTINUED LOSSES BY THE MAYNARD MASS COMPANY COULD PROMPT A RATINGS DOWNGRADE DIGITAL SOLD ITS FIRST PREFERRED OFFERING ON SCHEDULE ALTHOUGH A NUMBER OF OTHER ISSUERS STAYED ON THE SIDELINES YESTERDAY IN ANTICIPATION OF TODAY'S MEETING OF THE FOMC THE DIGITAL OFFERING SURPRISED SYNDICATE OFFICIALS WHO NOTED THAT IT IS UNUSUAL TO MARKET A LARGE ISSUE AND THEN TO REDUCE ITS SIZE AT PRICING DIGITAL'S DECISION TO CUT THE SIZE OF ITS OFFERING WAS VIEWED AS A NEGATIVE SIGN ONE PREFERREDSTOCK TRADER NOTED THE PROBLEM WITH DIGITAL IS THE COMPANY NOT THE PRICING HE SAID REFERRING TO S&P'S NEGATIVE RATING OUTLOOK DIGITAL VIEWED ITS FIRST FORAY INTO THE PREFERRED MARKET AS A SUCCESS SAID JIM CHIAFERY A MANAGER OF SHAREHOLDER RELATIONS AT DIGITAL DIGITAL'S SHAREHOLDERS VOTED LAST NOVEMBER TO AUTHORIZE THE SALE OF PREFERRED FOR THE FIRST TIME HE ADDED WE ARE JUST GLAD TO RAISE 400 MILLION IN A DIFFICULT MARKET MR CHIAFERY SAID PRICES OF MUNICIPAL BONDS ENDED AS MUCH AS 1/2 POINT LOWER AFTER A SLOW SESSION AMONG SECONDARY ISSUES THE MASSACHUSETTS HEALTH AND EDUCATIONAL FACILITIES AUTHORITY'S 575 BONDS OF 2024 FINISHED ABOUT 3/8 LOWER AT 96 1/2 TO YIELD 598 WITH JITTERS ABOUT THE FOMC MEETING DEPRESSING BOND PRICES AND BOOSTING YIELDS SOME MUNI ISSUERS ARE CHANGING THEIR DEBTSELLING PLANS CS FIRST BOSTON INC SAID THE PRICING OF THE PENNSYLVANIA HIGHER EDUCATION FACILITIES AUTHORITY'S 2823 MILLION ISSUE OF HEALTHSERVICES REVENUE BONDS HAS BEEN POSTPONED AND PUT ON A DAYTODAY BASIS THE PRICING HAD BEEN SCHEDULED FOR TODAY WHILE THAT ISSUE HAS BEEN PUT ON HOLD A JP MORGAN SECURITIES INC GROUP STILL PLANS TO PRICE NEW YORK CITY'S 6857 MILLION OF FIXEDRATE TAXEXEMPT FISCAL 1994 BONDS TODAY THOSE BONDS ARE PART OF AN ISSUE THAT IS SEEN TOTALING ABOUT 11 BILLION THE CONCURRENT OFFERING OF 3792 MILLION OF ADJUSTABLERATE BONDS IS EXPECTED TO BE PRICED A NUMBER OF DAYS AFTER THE SALE OF THE FIXEDRATE BONDS AMONG THE OTHER OFFERINGS STILL SCHEDULED TO COME TO THE MARKET TODAY IS A PHILADELPHIA SCHOOL DISTRICT ISSUE OF 160 MILLION OF GENERAL OBLIGATION BONDS MERRILL LYNCH & CO IS THE MANAGING UNDERWRITER PRICES OF MORTGAGEBACKED SECURITIES ENDED LOWER THE MORE GENEROUS YIELDS COULD ATTRACT BUYERS TO THE MARKET BUT MORTGAGES ARE UNLIKELY TO REACH THEIR FAIR VALUE UNTIL THE VOLATILITY IN THE BOND MARKET DISAPPEARS SAYS RAJIV SOBTI HEAD OF MORTGAGE QUANTITATIVE RESEARCH AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP AT THE CLOSE OF YESTERDAY'S SESSION FEDERAL HOME LOAN MORTGAGE CORP GOLD 7 SECURITIES WERE YIELDING 753 097 PERCENTAGE POINT ABOVE THE TREASURY'S 5875 10YEAR NOTE A PRICING BENCHMARK FOR RECENTLY ISSUED MORTGAGE SECURITIES THE YIELD SPREAD BETWEEN FREDDIE MAC 7 ISSUES AND THE 10YEAR NOTE WAS 094 PERCENTAGE POINT AT THE CLOSE OF TRADING FRIDAY EARLIER THIS MONTH FREDDIE MAC 7 ISSUES YIELDED ONLY 082 PERCENTAGE POINT TO 088 PERCENTAGE POINT MORE THAN THE 10YEAR NOTE AFTER TODAY'S WIDENING MORTGAGES AGAIN SHOULD BE CLOSER TO THE BUY ZONE' MR SOBTI SAYS IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR APRIL DELIVERY ENDED 15/32 LOWER AT 97 9/32 FREDDIE MAC GOLD 7 ISSUES ENDED 14/32 LOWER AT 97 22/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ENDED 14/32 LOWER AT 97 14/32 MEANWHILE ACTIVITY WAS BREWING IN THE ASSETBACKED SECURITIES MARKET WITH AT LEAST 35 BILLION IN SUPPLY EXPECTED TO BE PRICED THIS WEEK ISSUERS OFTEN RUSH TO COMPLETE DEALS BY THE END OF THE QUARTER CAUSING A LASTMINUTE CRUSH OF DEALS 9403220047 940322 INDUSTRY FOCUS MCCAWGATES SATELLITE PLAN DRAWS SKEPTICAL REVIEWS SYSTEM OF 840 BIRDS' IS CALLED TOO COSTLY AND NEEDLESSLY COMPLICATED BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A BRASH PLAN BY HIGHTECH ENTREPRENEURS CRAIG O MCCAW AND WILLIAM H GATES TO LAUNCH A 9 BILLION SATELLITE NETWORK IS BEING DERIDED AS THE NEXT STAR WARS AS IN THE FAILED DEFENSE STRATEGY NOT THE HIGHLY SUCCESSFUL FILM TRILOGY INDUSTRY EXPERTS AND A FEW POTENTIAL RIVALS PREDICTABLY SAID THE PLAN LAUNCHED YESTERDAY TO OPERATE A NETWORK OF 840 SATELLITES WILL HAVE A HARD TIME REACHING ALTITUDE DESPITE THE LOFTY SUCCESSES OF ITS TWO PATRONS MR MCCAW'S PIONEERING COMPANY MCCAW CELLULAR COMMUNICATIONS INC IS NOW THE WORLD'S LARGEST WIRELESS CARRIER AND MR GATES BUILT MICROSOFT CORP INTO THE WORLD'S LARGEST SOFTWARE MAKER BUT THEIR SATELLITE PLAN TO PROVIDE A VARIETY OF SERVICES TO RURAL AREAS WORLDWIDE IS SURE TO FLY INTO TECHNICAL FINANCIAL AND POLITICAL FLAK THAT HASN'T BEEN ADEQUATELY ADDRESSED IN THEIR PROPOSAL TO THE FEDERAL COMMUNICATIONS COMMISSION INDUSTRY EXPERTS CONTENDED GOD SAVE US IT'S THE STUPIDEST DAMN THING I'VE EVER HEARD OF SAID JOHN PIKE DIRECTOR OF THE FEDERATION OF AMERICAN SCIENTISTS' SPACE POLICY PROJECT TERRESTRIAL TELEPHONE IS MUCH LESS EXPENSIVE TO IMPLEMENT AND WHO WOULD USE THEIR SYSTEM WHO COULD AFFORD IT HOWARD ANDERSON OF THE YANKEE GROUP ADDED THIS IS A MIDLIFE CRISIS FOR BOTH MR MCCAW 44 YEARS OLD AND MR GATES 38 IT AIN'T GONNA WORK IF THE TWO ENTREPRENEURS WERE TRULY SERIOUS HE ASSERTED THEY WOULD PUT UP FAR MORE OF THEIR OWN MONEY RATHER THAN SEEKING BACKERS BUT EXECUTIVES AT THE MCCAWGATES VENTURE EXPRESS CONFIDENCE THAT THE VARIOUS HURDLES WILL BE OVERCOME TODAY THE COST OF BRINGING MODERN COMMUNICATIONS TO POOR AND REMOTE AREAS IS SO HIGH THAT MANY OF THE WORLD'S PEOPLE CAN'T PARTICIPATE IN OUR GLOBAL COMMUNITY MR MCCAW SAID IN A PREPARED STATEMENT HIS NEW EFFORT HE MAINTAINED WILL BE AN OPPORTUNITY TO BROADEN THIS VISION TO INCLUDE ALL OF THE WORLD'S CITIZENS INDEED THE MCCAWGATES VENTURE KNOWN AS TELEDESIC CORP WILL HAVE TO ENTICE NUMEROUS MANUFACTURERS AND GOVERNMENTS TO BACK WHAT WOULD BE AN EXTRAORDINARILY COSTLY PROJECT BY THE YEAR 2001 TELEDESIC PLANS TO HAVE ITS NETWORK OF 840 SATELLITES CIRCLING THE EARTH IN A LOW ORBIT OFFERING A BROAD ARRAY OF INTERACTIVE VOICE DATA AND VIDEO SERVICES AT PRICES SIMILAR TO CONVENTIONAL WIRED SERVICES YET POTENTIAL INVESTORS ALREADY HAVE MYRIAD OTHER SATELLITE SUITORS MOTOROLA INC IS BUILDING SUPPORT FOR ITS SIMILAR IRIDIUM EFFORT A 34 BILLION LAUNCH AIMED AT MOBILE USERS LORAL CORP THE DEFENSE CONTRACTOR IS TEAMING WITH TINY QUALCOMM CORP TO LAUNCH ITS 48SATELLITE GLOBALSTAR SYSTEM TRW INC'S ODYSSEY PROJECT IS A SMALLER 12BIRD SYSTEM IN FINAL DEVELOPMENT STAGES AND STILL ANOTHER EFFORT ELLIPSAT ALREADY HAS THE SUPPORT OF WESTINGHOUSE ELECTRIC CORP HARRIS CORP AND FAIRCHILD SPACE CORP WE'LL EXPLOIT RURAL TELEPHONE SERVICE BEFORE THE OTHERS EVEN GET STARTED SAID GERALD HELMAN A VICE PRESIDENT AT ELLIPSAT'S HOLDING COMPANY MOBILE COMMUNICATIONS HOLDINGS INC TELEDESIC IS FAR MORE AMBITIOUS GIVEN ITS GOAL OF PUTTING 840 SATELLITES ALOFT EVEN IF MESSRS MCCAW AND GATES CAN RAISE THE MONEY NEEDED HOWEVER THEY WOULD NEED TO LURE MILLIONS OF USERS TO GENERATE ENOUGH TRAFFIC TO PAY OFF THE COST OF THE NETWORK WHICH WILL BE AT LEAST THREE TIMES MORE EXPENSIVE THAN MOTOROLA'S ELABORATE IRIDIUM SATELLITE PROJECT RURAL FOLKS AND UNDERDEVELOPED REGIONS THE PRIMARY TARGET OF TELEDESIC MARKETERS AREN'T USED TO PAYING LARGE SUMS FOR COMMUNICATIONS SERVICES JUST LAUNCHING THAT MANY BIRDS WILL BE AN AWESOME UNDERTAKING NOTED A SPOKESWOMAN AT TRW ASSUMING THE LAUNCH OF 840 SATELLITES IS SUCCESSFUL THERE'S AN AWFUL LOT OF GROUND CONTROL MORE GROUND CONTROL OF SATELLITES IN FACT THAN THE NORTH AMERICAN AEROSPACE DEFENSE COMMAND KNOWN AS NORAD HANDLES FROM ITS BASE IN COLORADO SPRINGS COLO NOTED MR PIKE IN THE WHOLE WORLD THERE ARE ABOUT 300 TO 350 ACTIVE SATELLITES HE ADDED IT IS ALSO HARD TO SEE HOW THE TELEDESIC PARTNERSHIP WILL BE ABLE TO COMPETE WITH CONVENTIONAL PHONE NETWORKS MUCH OF WHICH WILL BE EFFICIENT HIGHSPEED DIGITAL FIBEROPTIC HIGHWAYS BY THE TURN OF THE CENTURY AND WHERE THERE ISN'T FIBER MOTOROLA AND SWEDEN'S LM ERICSSON ARE SELLING CELLULAR RADIO NETWORKS TO FILL IN THE GAPS MOTOROLA SAYS IT HAS ALREADY SOLD 120 SUCH NETWORKS IN CHINA FOR EXAMPLE MOTOROLA ALREADY HAS A BIG JUMP WITH IRIDIUM WHILE THE NETWORK WOULD BE MARKETED PRIMARILY TO HIGHPAYING MOBILE PHONE AND DATA USERS THERE IS NOTHING IN THE SERVICE'S PLAN THAT WOULD PROHIBIT IRIDIUM FROM OFFERING A FIXED REGULAR PHONE SERVICE TO RURAL CUSTOMERS FOR NOW IRIDIUM AND TELEDESIC DON'T REGARD EACH OTHER AS RIVALS WHILE IRIDIUM BY TERMS OF ITS FCC LICENSE IS A MOBILE SERVICE AIMED AT HANDHELD DEVICES TELEDESIC IS AIMING ITS BEAMS AT PEOPLE AT HOME OR IN A BUSINESS THERE ARE REAL DISTINCTIONS SAID RUSSELL DAGGATT TELEDESIC'S PRESIDENT WE AIM TO DELIVER AFFORDABLE BROADBAND COMMUNICATION SERVICES TO AREAS WHERE THERE ISN'T WIRED SERVICES AND IRIDIUM WOULD DELIVER HIGHCOST NARROWBAND SERVICE TO MOBILE CUSTOMERS THERE COULD BE SOME OVERLAP WITH TELEDESIC IN DEVELOPING COUNTRIES HOWEVER IRIDIUM'S SPOKESMAN NOTED THAT A STATE PHONE COMPANY IN ONE OF THESE COUNTRIES FOR EXAMPLE COULD DECIDE AS A TEMPORARY MEASURE TO SET UP A PORTABLE KIOSK TO PROVIDE A GLOBAL LINK TO A VILLAGE BUT THAT WOULD LIKELY BE AN INTERIM STEP TO BUILDING A TRADITIONAL PHONE INFRASTRUCTURE STILL RIVALS HOPE THAT THERE'S ROOM FOR ONE MORE PLAYER IN THE SATELLITE GAME ELLIPSAT'S MR HELMAN SAYS THE MCCAWGATES ENTRY HELPS TO VALIDATE THE NEED FOR MOBILE AND FIXED SATELLITE SERVICES SUCH AS ELLIPSAT'S UNDER 1 BILLION PROJECT ANOTHER RIVAL CELLULARVISION OF NEW YORK LP IS SETTING UP A WIRELESS SERVICE TO DELIVER VIDEO PROGRAMMING TO THE HOME STARTING IN MANHATTAN THE SERVICE OPERATES IN THE SAME 28GIGAHERTZ FREQUENCY THAT TELEDESIC WANTS TO USE WHILE THE FCC IS CURRENTLY LOOKING AT WHETHER SATELLITE SYSTEMS WILL INTERFERE WITH TERRESTRIAL SYSTEMS SUCH AS CELLULARVISION SHANT HOVNANIAN CELLULARVISION'S CHIEF EXECUTIVE OFFICER SAYS I THINK THAT THERE IS DEFINITELY ROOM FOR EVERYBODY I THINK WHAT THIS DOES IS THAT IT SHOWS ANOTHER SIGN OF OVERWHELMING SUPPORT FOR WIRELESS IN GENERAL TELEDESIC ALSO MAY HAVE AN EDGE OVER RIVALS IN THE DATA RACE WHILE IRIDIUM WOULD TRANSMIT DATA TO PORTABLE DEVICES AT AS MUCH AS 2400 BITS PER SECOND TELEDESIC IS PROMISING DATA TRANSMISSION AT MILLIONS OF BITS PER SECOND ENOUGH TO SEND DATA FILES AT HIGH SPEED AND EVEN MOVING IMAGES A TOP SONY CORP EXECUTIVE FINDS THAT INTRIGUING IT'S VERY APPEALING SAID MICHAEL SCHULHOFF PRESIDENT AND CEO OF THE COMPANY'S SONY CORP OF AMERICA UNIT A MAJOR PURVEYOR OF PROGRAMMING AND OF THE ELECTRONIC DEVICES THAT WOULD MAKE USE OF GLOBAL NETWORKS JUST EXTENDING FIBEROPTIC CABLE TO HOMES IN CALIFORNIA ALONE WOULD COST AN ESTIMATED 16 BILLION HE NOTED SO 9 BILLION ISN'T AN OUTRAGEOUS AMOUNT OF MONEY FOR A GLOBAL TELECOMMUNICATIONS NETWORK I'D BE THE FIRST SUBSCRIBER BUT MESSRS MCCAW AND GATES NEED TO FIND MORE OWNERS FOR TELEDESIC TODAY EACH OWNS SLIGHTLY MORE THAN 30 OF THE PARTNERSHIP ON WHICH THEY HAVE SPENT A COUPLE OF MILLION DOLLARS ACCORDING TO A MCCAW SPOKESMAN THE REMAINDER IS HELD BY MCCAW CELLULAR AT 28 AND KINSHIP VENTURES II AT 10 A LOS ANGELES VENTURECAPITAL FUND RUN BY EDWARD TUCK WHO FOUNDED THE MAGELLAN GLOBALPOSITIONING SATELLITE SYSTEM THE MCCAW CELLULAR HOLDING WOULD BE TRANSFERRED TO AMERICAN TELEPHONE & TELEGRAPH CO ONCE AT&T COMPLETES ITS EXPECTED 126 BILLION PURCHASE OF MCCAW LATER THIS YEAR DON CLARK IN SAN FRANCISCO CONTRIBUTED TO THIS ARTICLE 9403220046 940322 TECHNOLOGY COMPUTERLAND CHANGES NAME AS PART OF NEW FOCUS GETS OUTSOURCING WORK BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPUTERLAND CORP MAKING A CLEAN BREAK FROM ITS RETAILING ROOTS SAID IT IS CHANGING ITS NAME TO VANSTAR INC AND WILL FOCUS SOLELY ON COMPUTER SERVICES THE PRIVATELY HELD PLEASANTON CALIF COMPANY THE GRANDDADDY OF THE STOREFRONT COMPUTER RETAILING BUSINESS IS EXPECTED TO ANNOUNCE THE NAME CHANGE TODAY ALONG WITH TECHNOLOGYOUTSOURCING CONTRACTS FROM MICROSOFT CORP AND THE ISSC CORP UNIT OF INTERNATIONAL BUSINESS MACHINES CORP THOSE DEALS WHICH CALL FOR VANSTAR TO TAKE OVER THE COMPANIES' INHOUSE BUYING AND INSTALLATION OF PERSONAL COMPUTERS ARE VALUED AT ABOUT 100 MILLION EACH VANSTAR SAID EFFECTIVELY DOUBLING THE SIZE OF THE COMPANY'S EXISTING SERVICES BUSINESS WILLIAM Y TAUSCHER VANSTAR'S CHAIRMAN SAID THE NEW LONGTERM CONTRACTS ALONG WITH THE SHARPENED FOCUS ON COMPUTER SERVICES REFLECTS THE INCREASED COMPLEXITY OF PCS WHICH TODAY TAKE ON MANY OF THE JOBS ONCE HANDLED BY MUCH LARGER MAINFRAME MACHINES ONE OF THE DIRTY LITTLE SECRETS ABOUT PCS IS THAT THE SERVICE AND SUPPORT FOR COMPUTERS AND NETWORKS IS A DISASTER MR TAUSCHER SAID INDEED ANALYSTS ESTIMATE THAT THE TRUE COST OF A PC INCLUDING INSTALLING IT MAINTAINING IT TRAINING PEOPLE TO USE IT AND UPDATING IT IF NECESSARY COULD APPROACH 40000 OVER FIVE YEARS OR MORE THAN 10 TIMES THE COST OF A HIGHEND MACHINE THE COSTS ARE GROWING SIGNIFICANTLY SAID JEFF KAPLAN AN ANALYST AT DATAQUEST INC HE BLAMES THE INCREASE ON THE TREND TOWARD COBBLING TOGETHER DOZENS OF PCS INTO ADVANCED NETWORKS MR TAUSCHER'S NEW VANSTAR IS HOPING TO HANDLE THAT WORK FOR COMPANIES AS WELL AS RUN THEIR EMPLOYEETRAINING PROGRAMS AND INHOUSE TECHNICAL HELP DESKS MR TAUSCHER BEGAN TRANSFORMING COMPUTERLAND LAST YEAR AFTER THE COMPANY RAN INTO A CASH CRUNCH FOLLOWING A PC PRICE WAR AND A BOOM IN THE NUMBER OF PLACES COMPANIES COULD BUY THE MACHINES AFTER STEADILY REDUCING THE NUMBER OF COMPUTERLAND STOREFRONT OUTLETS THE COMPANY LAST MONTH SOLD ITS FRANCHISED RETAIL SYSTEM TO MERISEL INC FOR 110 MILLION THE 100 REMAINING COMPANYOWNED COMPUTERLAND OUTLETS ARE BEING TRANSFORMED INTO BRANCH OFFICES FOR VANSTAR'S COMPUTERSERVICES BUSINESS ALTHOUGH THE DEAL EFFECTIVELY REDUCED COMPUTERLAND'S SIZE BY HALF TO 11 BILLION IN REVENUE FROM MORE THAN 2 BILLION IN 1993 ANALYSTS SAY IT ENABLED THE COMPANY TO BAIL OUT OF THE COMMODITY BUSINESS OF RESELLING MACHINES AND TO FOCUS ON MORE PROFITABLE COMPUTER SERVICES THE QUESTION NOW THE ANALYSTS SAY IS WHETHER THE COMPANY WILL BE ABLE TO MARKET ITS NEW NAME AND STRATEGY AND BEAT OUT COMPETITORS LIKE COMPUCOM SYSTEMS INC ELECTRONIC DATA SYSTEMS CORP AND MERISEL INC FOR A SHARE OF THE 693 BILLION COMPUTER SERVICES BUSINESS THEY'VE TURNED THEIR BUSINESS AROUND 180 DEGREES SAID LEE LEVITT AN ANALYST AT INTERNATIONAL DATA CORP FRAMINGHAM MASS THEY'VE WIPED THE SLATE CLEAN 9403220044 940322 WHAT'S NEWS BUSINESS AND FINANCE NOVELL AGREED TO PURCHASE WORDPERFECT FOR 14 BILLION IN STOCK AND BORLAND INTERNATIONAL'S SPREADSHEET BUSINESS FOR 145 MILLION MOVING AGGRESSIVELY TO COUNTER THE DOMINANCE OF MICROSOFT THE DEALS SHOULD HELP NOVELL LONGTIME LEADER IN SOFTWARE FOR NETWORKING PERSONAL COMPUTERS REALIZE ITS DESIRE TO OWN A BIGENOUGH LINEUP OF PRODUCTS TO COMPETE VIRTUALLY ON ALL FRONTS WITH MICROSOFT METROPOLITAN LIFE AND TRAVELERS ARE IN TALKS TO COMBINE THEIR HEALTHCARE UNITS A MOVE THAT WOULD CREATE ONE OF THE LARGEST US HEALTHINSURANCE AND MANAGEDCARE OPERATIONS FORD PLANS TO HIRE ABOUT 900 NEW WORKERS FOR A THIRD WORK SHIFT AT A KENTUCKY PLANT IN A MOVE THAT SIGNALS CONFIDENCE IN THE ECONOMIC RECOVERY FORD IS ALSO STUDYING THE ADDITION OF THIRD SHIFTS AT OTHER PLANTS THAT BUILD HIGHLY PROFITABLE TRUCK MODELS THE HOUSE ENERGY AND COMMERCE COMMITTEE LEADERSHIP IS DRAFTING A HEALTHCARE BILL THAT WOULD PLACE A LIGHTER BURDEN ON SMALL BUSINESS THAN WOULD CLINTON'S PLAN WHILE REQUIRING COMPANIES WITH MORE THAN 1000 EMPLOYEES TO PAY A 1 PAYROLL TAX STOCK AND BOND PRICES SANK AMID CONCERNS ABOUT AN IMPENDING INTERESTRATE INCREASE BY THE FEDERAL RESERVE THE DOW JONES INDUSTRIAL AVERAGE SLID 3080 POINTS TO 386485 THE PRICE OF THE TREASURY'S 30YEAR ISSUE FELL NEARLY 5/8 POINT ITS YIELD WAS 695 XEROX CHOSE GM'S ELECTRONIC DATA SYSTEMS TO MANAGE ITS COMPUTER SYSTEMS AND DATA CENTERS IN A CONTRACT THAT COULD TOTAL 3 BILLION OVER 10 YEARS THE SELECTION DEALT A BLOW TO IBM WHICH WAS VIEWED BY SOME AS A FRONTRUNNER WITH BIDDING PARTNER AT&T BORDEN WILL REVERSE OR RECLASSIFY OVER 40 OF A 1992 642 MILLION RESTRUCTURING CHARGE AND RESTATE TWO YEARS' RESULTS REFLECTING SEC PRESSURE COMPUTERLAND IS CHANGING ITS NAME TO VANSTAR AND WILL FOCUS SOLELY ON COMPUTER SERVICES MAKING A CLEAN BREAK FROM ITS RETAILING ROOTS GM GAVE ITS 3400 TOP EXECUTIVES SUBSTANTIAL RAISES IN BASE SALARY LAST YEAR REFLECTING WORRIES ABOUT KEEPING TALENT AFTER A FOURYEAR BONUS DROUGHT FEDERAL INVESTIGATORS ARE LOOKING INTO THE ACTIONS OF A LEHMAN BROTHERS UNIT IN CONNECTION WITH A SQUEEZE IN TREASURY NOTES IN APRIL 1991 AMTECH'S STOCK DROPPED 34 AFTER A GROUP OF AGENCIES RECOMMENDED MARK IV INDUSTRIES' TECHNOLOGY OVER AMTECH'S FOR AUTOMATED TOLLCOLLECTION MARK IV INDUSTRIES' STOCK ROSE 32 SHORT INTEREST ROSE 35 ON THE NEW YORK STOCK EXCHANGE TO A RECORD 137 BILLION SHARES AT MIDMARCH SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE ROSE 37 TO A RECORD THE BIG BOARD AND NASDAQ AGREED TO CONTRIBUTE 5 MILLION APIECE TO PUT INTO A COMMON FUND FOR ADS EXTOLLING THE VIRTUES OF STOCKS FOR RETIREMENT PLANNING AMONG OTHER THINGS THE TWO ALSO AGREED NOT TO TAKE SUBLIMINAL POTSHOTS AT EACH OTHER IN THEIR OWN CONTINUING ADVERTISING PITCHES THE SEC CHAIRMAN URGED MUTUALFUND DIRECTORS TO TIGHTEN THE REINS ON FUNDS THEY OVERSEE AND TO SCRUTINIZE FUND MANAGERS' PERSONAL TRADING GALLUP ORGANIZATION SAID IT PLANS TO ENTER THE 30 MILLION MOVIERESEARCH MARKET WHICH HAS BEEN DOMINATED BY SAATCHI'S NATIONAL RESEARCH GROUP BONDS LEHMAN BROTHERS TREASURY INDEX 526976 OFF 1745 COMMODITIES OIL 1537 A BARREL UP 49 CENTS DOW JONES FUTURES INDEX 14295 OFF 054 SPOT INDEX 13130 OFF 055 DOLLAR 10600 YEN OFF 010 16885 MARKS OFF 00080 9403220043 940322 CANADA PLANS TO GIVE CUBA HUMANITARIAN ASSISTANCE OTTAWA CANADA WILL PROVIDE HUMANITARIAN ASSISTANCE TO CUBA AND WILL ENCOURAGE THE US TO DO LIKEWISE FOREIGN AFFAIRS MINISTER ANDRE OUELLET SAID MR OUELLET SAID THAT FOR THE TIME BEING CANADA'S ASSISTANCE TO CUBA WILL BE CHANNELED THROUGH NONGOVERNMENTAL ORGANIZATIONS BUT HE SAID THE CANADIAN GOVERNMENT IS ALSO REVIEWING THE POSSIBILITY OF RESUMING DIRECT AID TO CUBA MR OUELLET SAID CANADIANS CAN'T STAY IDLE IN FACE OF THE BASIC NEEDS OF CUBA'S POPULATION HE SAID HE HOPED THE US WILL TURN THE PAGE WITH REGARD TO CUBA AS IT HAS DONE WITH VIETNAM THE MINISTER SAID THAT CANADA IS OPPOSED TO THE TRADE EMBARGO OF CUBA AND THAT HE BELIEVES EVERY EFFORT SHOULD BE MADE TO REESTABLISH CUBA'S RELATIONS WITH OTHER NATIONS IN THE HEMISPHERE 9403220042 940322 MARKETING & MEDIA ADVERTISING QVC INC PICKS PERKINS TO LEAD CHARGE INTO INFOMERCIAL MARKET BY LAURA BIRD QVC INC HAS TURNED TO A VETERAN OF MADISON AVENUE TO LEAD ITS CHARGE INTO THE INFOMERCIAL BUSINESS QVC OF WEST CHESTER PA NAMED ROBERT J PERKINS ONCE A TOP EXECUTIVE AT THE CHIAT/DAY AD AGENCY TO THE POST OF PRESIDENT OF QDIRECT THE UNIT QVC FORMED LAST MONTH IN A CORPORATE RESTRUCTURING TO PRODUCE INFOMERCIALS AND OTHER DIRECT RESPONSE ADS MOST RECENTLY THE 42YEAROLD MR PERKINS WAS A SENIOR VICE PRESIDENT AT PEPSICO'S PIZZA HUT OVERSEEING MARKETING AND ADVERTISING RATHER THAN RUN INFOMERCIALS ON ITS OWN HOMESHOPPING CHANNELS WHICH INCLUDE QVC AND THE MORE UPSCALE Q2 THE COMPANY PLANS TO SHOW THEM ON BROADCAST STATIONS AND OTHER CABLE NETWORKS INFOMERCIALS ARE PART OF QVC'S PLAN TO BUILD ITS NAME AND THE ELECTRONIC RETAILING MARKET BY GOING AFTER HOUSEHOLDS THAT DON'T CURRENTLY RECEIVE THE QVC SHOPPING CHANNELS ON THEIR CABLE SYSTEMS IT WOULD BE A MISTAKE TO VIEW THIS JUST AS QVC'S ENTRY INTO INFOMERCIALS SAYS MR PERKINS JUST AS PIZZA HUT FOLLOWED CONSUMERS EVERYWHERE THEY WENT FROM AIRPORTS TO THEIR OWN LIVING ROOMS SO QVC PLANS TO HUNT DOWN NEW CUSTOMERS MR PERKINS SAID THE COMPANY WILL BUY MEDIA TIME OUTRIGHT HE SAID BUT WILL ALSO TRY JOINT VENTURES WITH CABLE NETWORKS AND RETAILERS QVC COULDN'T HAVE PICKED A MORE COMPETITIVE TIME TO GET INTO THE BUSINESS GROSS SALES OF PRODUCTS AND SERVICES SOLD VIA INFOMERCIALS WERE UP 20 LAST YEAR TO ABOUT 900 MILLION ACCORDING TO THE NATIONAL INFOMERCIAL MARKETING ASSOCIATION BIG MARKETERS HAVE DISCOVERED THE INFOMERCIAL NOT JUST AS A DIRECT SALES TOOL BUT ALSO AN EFFECTIVE WAY TO INCREASE STORE SALES TOO CONSEQUENTLY THE COST OF INFOMERCIAL TIME HAS INCREASED 15 TO 20 IN THE LAST FEW YEARS ESTIMATES KATIE WILLIAMS CHIEF EXECUTIVE OF WILLIAMS TELEVISION TIME ONE OF THE LARGEST BUYERS OF INFOMERCIAL MEDIA TIME THE INCREASE COMBINED WITH AN INCREASINGLY FRAGMENTED CABLE AUDIENCE AS NEW CHANNELS PROLIFERATE HAS CUT INTO THE PROFITABILITY OF THE INFOMERCIAL BUSINESS PRODUCERS ARE NOW SPENDING MORE MONEY TO MAKE THEIR SALES PITCH TO A SHRINKING NUMBER OF PEOPLE ALTHOUGH ABOUT 85 OF INFOMERCIALS FAIL TO SELL MANY PRODUCTS QVC SAYS IT HAS A DISTINCT ADVANTAGE IT CAN TEST PRODUCTS ON ITS SHOPPING CHANNELS AND THEN CREATE INFOMERCIALS ONLY FOR THE WINNERS THE COMPANY IS CURRENTLY AIRING IN THE PHILADELPHIA AREA INFOMERCIALS FOR THREE PRODUCTS THAT SOLD WELL ON THE SHOPPING CHANNELS THE NEW MIRACLE MOP THE ROLY KIT ROLLING STORAGECHEST AND QMI ENGINEOIL TREATMENT THE INFOMERCIALS ARE SET TO AIR NATIONALLY MARCH 28 BUT SOME EXECUTIVES CAUTION THAT WHAT WORKS ON A HOMESHOPPING SHOW WON'T NECESSARILY WORK ON INFOMERCIALS THERE ARE VERY FEW HOMESHOPPING SUCCESSES THAT WORK AS INFOMERCIALS SAYS GREG RENKER COFOUNDER OF THE INFOMERCIAL COMPANY GUTHY RENKER CORP IN WHICH RONALD PERELMAN'S MACANDREWS & FORBES HOLDINGS RECENTLY BOUGHT A STAKE ON SHOPPING SHOWS PRODUCTS ARE SHOWN AT A FAST CLIP AND BOUGHT AS IMPULSE ITEMS BUT IN INFOMERCIALS PURCHASERS ARE SEDUCED BY A FULL 30MINUTE SALES SPIEL INCLUDING DEMONSTRATIONS AND TESTIMONIALS NONSENSE SAYS QVC POINTING OUT THAT A LINE OF SKINCARE PRODUCTS THAT ACTRESS VICTORIA PRINCIPAL FIRST SOLD VIA INFOMERCIALS IS NOW DOING FINE ON QVC'S HOME SHOPPING CHANNELS MR RENKER WHOSE COMPANY PRODUCED THOSE INFOMERCIALS CAUTIONS THE SAME DOESN'T HOLD TRUE IN REVERSE PEOPLE INHERENTLY DON'T TRUST INFOMERCIALS BUT THE SHOPPING CHANNEL IS A TRUSTED RETAILER DOUGLAS BRIGGS WHO HEADS UP ALL OF QVC'S ELECTRONIC RETAILING BUSINESSES SAYS THE VENTURE WON'T CANNIBALIZE QVC'S OWN SHOPPING CHANNELS WHICH REACH ABOUT 45 MILLION US HOUSEHOLDS JUST 8 OF THOSE HOUSEHOLDS HAVE EVER ORDERED MERCHANDISE FROM QVC THERE ARE LITERALLY HUNDREDS OF THOUSANDS OF COMPANIES OUT THERE WITH GREAT PRODUCTS THAT DON'T KNOW HOW TO BRING THEM TO THE MARKET SAYS MR BRIGGS LET'S SAY MAYBE 10 MILLION PEOPLE BOUGHT SOMETHING BY TV IF SOMEONE ELSE CAN ENTER THE BUSINESS IT EXPANDS THE CATEGORY THESE PEOPLE WILL SHOP FROM EVERYBODY PHILIP MORRIS COS' MILLER BREWING CO SAID IT WILL PUT TSHIRTS INTO SPECIALLY DESIGNED CANS OF MILLER LITE BEER IN A SUMMER SALES PROMOTION SET TO START ON MEMORIAL DAY THE PROMOTION IS A VARIATION ON A DISASTROUS SUMMER PROMOTION THAT COCACOLA CO TRIED IN 1990 PUTTING CASH INTO MAGICANS OF SODA THE PROMOTION WAS SCRAPPED AFTER SOME CONSUMERS CLAIMED THEY DRANK FOULTASTING WATER FROM THE WINNING CANS THE TSHIRTS WILL ILLUSTRATE THE ODD PAIRINGS OF SPORTS SUCH AS FULL CONTACT GOLF SHOWN IN TV COMMERCIALS FOR MILLER LITE CREATED BY AGENCY LEO BURNETT ABOUT ONE IN 50 CANS WILL CONTAIN THE SHIRTS IN STATES WHERE SUCH A PRACTICE IS LEGAL THE COMPANY SAID IN ALL THE COMPANY PLANS TO GIVE AWAY 500000 SHIRTS ACCOUNT SARA LEE FOUNDATION A UNIT OF SARA LEE CORP AWARDED THE WONDERBRA ACCOUNT TO TBWA ADVERTISING INC OF NEW YORK FOR A MULTIMILLON DOLLAR NATIONAL MARKETING CAMPAIGN EARLIER THIS YEAR TBWA LAUNCHED A PROVOCATIVE AD SERIES FOR WONDERBRA IN THE UNITED KINGDOM 9403220041 940322 BUSINESS BRIEF SEAGATE TECHNOLOGY INC IRS SAYS UP TO 108 MILLION IN BACK TAXES MAY BE OWED SEAGATE TECHNOLOGY INC SCOTTS VALLEY CALIF SAID THE INTERNAL REVENUE SERVICE HAS INFORMED THE COMPANY THAT IT MAY OWE AS MUCH AS 108 MILLION IN BACK TAXES PLUS INTEREST AND PENALTIES THE MAKER OF COMPUTER DATASTORAGE PRODUCTS SAID IT WILL APPEAL IF SEAGATE LOSES IT WILL PAY THE MONEY FROM TAXDEFERRED RESERVES SAID CHIEF FINANCIAL OFFICER DONALD WAITE AT ISSUE IS HOW SEAGATE ALLOCATES COSTS BETWEEN ITS US AND ASIAN OPERATIONS THE IRS CLAIMS THAT SEAGATE INCORRECTLY CHARGED CERTAIN COSTS TO ITS US OPERATIONS THEREBY REDUCING TAXES OWED HERE IN A PREVIOUS DISPUTE THE IRS SAID SEAGATE OWED AN ADDITIONAL 1123 MILLION FOR THE YEARS 1983 THROUGH 1987 THE ISSUE IN THAT CASE WAS HOW SEAGATE ALLOCATED INCOME BETWEEN ITS US AND ASIAN OPERATIONS BASED ON A US TAX COURT RULING SEAGATE SAID LAST MONTH THAT IT BELIEVES IT WON'T HAVE TO PAY MOST OF THE AMOUNT THE IRS MAY APPEAL THAT RULING SEAGATE SAID 9403220040 940322 SMALL STOCK FOCUS INTERESTRATE JITTERS SEND PRICES LOWER ENDING STRING OF RECORDSETTING CLOSES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCAP STOCKS BROKE A THREESESSION STRING OF RECORD CLOSES AS FEAR OVER RISING INTEREST RATES AGAIN REARED ITS HEAD JITTERS ABOUT A POSSIBLE FEDERAL RESERVE MOVE TO TIGHTEN CREDIT THIS WEEK SENT BOND AND THEN STOCK INVESTORS DIVING FOR COVER THE FED'S POLICYMAKING COMMITTEE MEETS TODAY A FEB 4 DECISION BY THE FED TO RAISE SHORTTERM RATES TOUCHED OFF A STOCK MARKET SHELLACKING TRADERS ALSO SAID A NORMAL PULLBACK AFTER LAST WEEK'S STRONG RISE DRAGGED PRICES DOWN A BIT WEAKNESS IN OVERSEAS MARKETS WAS ANOTHER DEPRESSANT THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION ISSUES LOST 209 OR 077 TO 26899 AFTER HITTING A RECORD HIGH FRIDAY FOR THE THIRD STRAIGHT SESSION NASDAQ ISSUES WERE CLOBBERED ON PROFITTAKING FOLLOWING TWO STRAIGHT RECORDSETTING DAYS THE NASDAQ STOCK MARKET'S COMPOSITE INDEX SAGGED 663 OR 082 TO 79730 ADVANCING NASDAQ ISSUES TRAILED DECLINERS 1205 TO 1822 ON NASDAQ NATIONAL MARKET VOLUME OF 222974050 SHARES AND TOTAL TURNOVER OF 261551000 ON FRIDAY 261244200 NATIONAL MARKET SHARES CHANGED HANDS WHILE A TOTAL OF 311448000 SHARES WERE TRADED GAMING ISSUES FELL AS THE WALL STREET JOURNAL REPORTED THAT PRESIDENT CLINTON'S WELFAREREFORM WORKING GROUP WILL RECOMMEND A GAMBLING TAX AS PART OF A PROPOSAL TO THE PRESIDENT AT A CABINET MEETING TODAY SODAK GAMING RAPID CITY SD FELL 2 1/4 TO 23 CASINO AMERICA BILOXI MISS DROPPED 1 5/8 TO 33 1/2 AND SANDS REGENTS RENO NEV RETREATED 1/2 TO 13 BUT THE OUTLOOK FOR SMALLCOMPANY STOCKS REMAINS BRIGHT OVER THE LONGER TERM SAID RAO CHALASANI CHIEF INVESTMENT STRATEGIST AT KEMPER SECURITIES INC SMALL STOCKS STARTED DOING WELL IN THE FOURTH QUARTER OF 1990 AND I THINK THEY'VE GOT A FEW MORE QUARTERS BEFORE THE TREND OF THEM OUTPERFORMING LARGER STOCKS IS OVER MR CHALASANI SAID OVER THE SHORT TERM HOWEVER HE THINKS SMALLCAP ISSUES COULD CORRECT 5 MORE FROM CURRENT LEVELS AS PROFITTAKING CONTINUES TO EAT AWAY AT THE STRONG GAINS MADE OVER THE PAST MONTH THE DAY'S MOST ACTIVE NASDAQ STOCK AMTECH PLUMMETED 11 1/8 OR 34 TO 21 3/8 ON 62 MILLION SHARES MORE THAN 26 TIMES AVERAGE DAILY TURNOVER THE INTERAGENCY GROUP WHICH REPRESENTS TOLL AUTHORITIES IN NEW YORK NEW JERSEY AND PENNSYLVANIA RECOMMENDED MARK IV INDUSTRIES' TECHNOLOGY RATHER THAN AMTECH'S FOR ITS ELECTRONIC TOLL COLLECTION SYSTEM MARK IV GAINED 5/8 TO 20 ON THE BIG BOARD ANOTHER ACTIVELY TRADED ISSUE IMATRON GAINED 3/16 TO 1 3/4 ON 52 MILLION SHARES COMPARED WITH AVERAGE DAILY VOLUME OF 305300 THE SOUTH SAN FRANCISCO CALIF DESIGNER OF MEDICAL DIAGNOSTIC COMPUTER SCANNERS SAID FRIDAY THAT RECENT STUDIES INDICATE ITS ELECTRON BEAM ULTRAFAST CT TECHNOLOGY CAN DETECT CERTAIN INDICATORS OF HEART DISEASE BRAZILIAN FUNDS SANK AS INVESTORS FRETTED THAT A DISPUTE BETWEEN BRAZIL'S CONGRESS AND EXECUTIVE BRANCH COULD DAMAGE THE ECONOMY BRAZIL FUND SLIPPED 2 1/8 TO 24 3/4 AND BRAZILIAN EQUITY FUND GAVE UP 1 7/8 TO 21 ON THE NEW YORK STOCK EXCHANGE BALTIMORE BANCORP GAINED 1 1/4 TO 19 1/4 FIRST FIDELITY BANCORP WHICH EASED 1/4 TO 45 1/4 SAID IT REACHED A DEFINITIVE MERGER AGREEMENT TO ACQUIRE THE SMALLER COMPANY FOR 346 MILLION MARK CONTROLS CORP ROSE 1 3/8 TO 19 3/8 THE SKOKIE ILL VALVE MAKER SAID IT RECEIVED A LETTER OF INTENT TO BE ACQUIRED BY TYCO INTERNATIONAL LTD FOR 19 A SHARE MARK CONTROLS ALREADY HAS SIGNED A DEFINITIVE AGREEMENT TO BE ACQUIRED FOR 1775 A SHARE BY DANAHER WHICH ROSE 1 3/8 TO 40 ON THE BIG BOARD TYCO ROSE 1/4 TO 54 1/4 MARKET WATCHERS OFTEN SAY STOCKS REVERSE DIRECTION ON THE MONDAY FOLLOWING A FRIDAY SESSION OF EXPIRATIONS THE STOCK MARKET IGNORED BOND WEAKNESS FRIDAY AND GOT A BOOST FROM TRIPLE WITCHING WHEN QUARTERLY FUTURES AND OPTIONS EXPIRED THERE WERE A COMBINATION OF THINGS WORKING TODAY SAID BARRY BERMAN HEAD OF EQUITY TRADING AT ROBERT W BAIRD & CO A REVERSAL OF FRIDAY RATE WORRIES CONCERNS ABOUT WHITEWATER ALL SHOW THERE'S A LOT OF THINGS UP IN THE AIR RIGHT NOW THE MARKET AT TIMES TAKES BAD NEWS AND USES IT AS AN EXCUSE FOR SELLING 9403220039 940322 LETTERS TO THE EDITOR REMEMBERING A DAY OF OLYMPIC TRIUMPH YOUR ARTICLE FEB 24 ABOUT THE UNEXPECTED TRIUMPHS OF THE US SKI TEAM AT THE LILLEHAMMER OLYMPICS CLAIMED THAT THE US MALE SKIERS HAD A 20YEAR DROUGHT IN OLYMPIC MEDALS RESULTS RANGING FROM BILLY KIDD'S SILVER AND JIMMY HUEGA'S BRONZE IN 1964 UNTIL BILL JOHNSON'S GOLD IN 1984 HOWEVER ON FEB 22 1980 IN LAKE PLACID ON A COLD ADIRONDACK MORNING PHIL MAHRE WON A SILVER MEDAL IN SLALOM ENDING THE 16YEAR DRY SPELL I WAS FORTUNATE TO WITNESS THAT RACE AT WHITEFACE MOUNTAIN BUT THAT WAS JUST THE BEGINNING OF A MEMORABLE DAY IN US OLYMPIC HISTORY LATER THAT AFTERNOON THE YOUNG AMATEUR US HOCKEY TEAM STUNNED THE WORLD BY DEFEATING THE SOVIET RUSSIAN HOCKEY TEAM 43 AT THE HEIGHT OF THE COLD WAR THE US SKI TEAM AND THE US HOCKEY TEAM HAVE HAD ONLY OCCASIONAL BURSTS OF BRILLIANCE BUT THEY SHOULD BE HIGHLY COMMENDED BECAUSE THEY STILL GENERALLY OPERATE AS AMATEUR TEAMS IN COMPARISON WITH THEIR PROFESSIONAL INTERNATIONAL COMPETITORS 9403220038 940322 LETTERS TO THE EDITOR UNCHAIN THE JOURNAL'S LIST OF BESTSELLERS WE NOTED WITH INTEREST YOUR NEW FORAY INTO THE BOOKSTORE WARS ON FEB 23 WITH THE PUBLICATION OF A BESTSELLER LIST WE HOPE THAT THE FOLLOWING POINTS HELP YOUR READERS MORE FULLY UNDERSTAND SOME OF THE MORE THORNY ISSUES IN THIS ONGOING BATTLE THE 13 CHAINS THAT PROVIDE YOU WITH 100 OF YOUR SAMPLE ARE OWNED BY ONLY FOUR COMPANIES KMART CORP BARNES & NOBLE CROWN BOOKS INC AND BOOKSAMILLION A QUICK ANALYSIS OF YOUR MARCH 2 BOOKSELLER LIST REVEALS THAT THE SEVEN SISTERS OF BOOK PUBLISHING SUPPLIED 90 OF THAT LIST TO THESE 13 CHAINS SIX OF THESE TOP US PUBLISHERS ARE INVOLVED IN CEASEANDDESIST PROCEEDINGS WITH THE FEDERAL TRADE COMMISSION REGARDING ALLEGED DISCRIMINATORY BUSINESS DEALINGS FAVORING CHAIN BOOKSTORES THE FTC IS REPORTEDLY INVESTIGATING THE SEVENTH FOR THE SAME BUSINESS PRACTICES SINCE IT IS COMMON KNOWLEDGE THAT MAJOR PUBLISHERS PAY MONEY TO OBTAIN FAVORABLE POSITIONS IN CHAIN BOOKSTORES FOR THEIR LEADING TITLES IT SEEMS THAT YOUR LIST AND MANY OTHER BESTSELLER LISTS SERVES MORE TO PERPETUATE INDUSTRY HYPERBOLE THAN TO ACCURATELY REFLECT THE DIVERSE AND ECLECTIC TASTES OF AMERICAN READERS 9403220037 940322 BUSINESS BRIEF POTLATCH CORP COMPANY TO SHED 160 JOBS AND TAKE 10 MILLION CHARGE POTLATCH CORP CITING MANUFACTURING EFFICIENCIES SAID IT WILL SHED 160 JOBS THROUGH EARLY RETIREMENT IN ITS IDAHO PULP OPERATION THAT WILL RESULT IN A PRETAX CHARGE OF 10 MILLION AGAINST FIRSTQUARTER EARNINGS COMBINED WITH COSTS FROM A FEBRUARY ICE STORM IN ARKANSAS AND THE COST OF REBUILDING A TISSUE MACHINE IN IDAHO THE 10 MILLION CHARGE WILL HAVE A SIGNIFICANT EFFECT ON OUR FIRSTQUARTER EARNINGS RICHARD MADDEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE SAN FRANCISCO COMPANY SAID IN A NEWS RELEASE A SPOKESWOMAN WOULDN'T COMMENT ON WHAT FIRSTQUARTER EARNINGS WILL BE RESULTS WILL BE ANNOUNCED APRIL 14 IN THE YEAREARLIER FIRST QUARTER POTLATCH HAD A LOSS OF 95 MILLION OR 33 CENTS A SHARE AFTER AN ACCOUNTING CHARGE OF 75 MILLION AND A ONETIME GAIN OF 438 MILLION FOR AN ACCOUNTING CHANGE AFTER THE CUTS THE IDAHO PULP OPERATION WILL BE RUN BY ABOUT 674 WORKERS 9403220036 940322 JANUARY RETAIL SALES IN CANADA OTTAWA CANADIAN RETAIL SALES ROSE 12 IN JANUARY FROM DECEMBER LED BY A FURTHER SALES INCREASE IN THE AUTO SECTOR STATISTICS CANADA A GOVERNMENT AGENCY SAID THE AGENCY SAID THE RETAILSALES TREND HAS BEEN STRENGTHENING OVER THE LAST FIVE MONTHS ALL MAJOR RETAIL SECTORS EXCEPT FURNITURE SHOWED INCREASED SALES IN JANUARY SALES BY THE AUTO SECTOR ROSE IN JANUARY FOR THE FIFTH CONSECUTIVE MONTH INCREASING 14 FROM DECEMBER 9403220035 940322 LDDS TO BUY ACC IN STOCK SWAP VALUED AT 1845 MILLION JACKSON MISS LDDS COMMUNICATIONS INC A LONGDISTANCE TELEPHONE CARRIER SIGNED A LETTER OF INTENT TO BUY ACC CORP IN A STOCK SWAP VALUED AT 1845 MILLION UNDER TERMS OF THE ACQUISITION ACC STOCKHOLDERS WOULD RECEIVE ONE SHARE OF LDDS COMMON STOCK FOR EACH OF THEIR SHARES ACC A TELECOMMUNICATIONS CONCERN IN ROCHESTER NY HAS APPROXIMATELY 68 MILLION SHARES OUTSTANDING IN TRADING YESTERDAY ON THE NASDAQ STOCK MARKET ACC SHARES ROSE 16 OR 350 TO 2525 A SHARE WHILE LDDS FELL 1375 TO 27125 GIVING THE TRANSACTION AN INDICATED VALUE OF 1845 MILLION ANALYSTS SAID THE DEAL WOULD BE A BOON FOR LDDS HELPING THE COMPANY BOLSTER ITS GLOBAL PRESENCE AND EXPAND US MARKETING EFFORTS IN THE NORTHEAST LDDS SPECIALIZES IN SERVING SMALL TO MEDIUM BUSINESSES MAINLY IN THE SOUTHEAST SOUTHWEST AND MIDWEST REGIONS ACC IS THE NO 2 RESELLER OF LONGDISTANCE TELEPHONE SERVICES IN CANADA WHICH WOULD GIVE LDDS A PRESENCE IN THAT MARKET WHERE ITS COMPETITORS ALREADY HAVE STRATEGIC ALLIANCES SAID THEODORE LEVY ANALYST AT SAFE RUTTY & CO MR LEVY SAID THE CANADIAN BUSINESS ACCOUNTS FOR ABOUT 60 OF ACC'S REVENUE ACC ALSO HAS OPERATIONS IN THE UK AND DENMARK HE SAID LDDS ALSO WOULD BENEFIT FROM ACC'S SALES TO UNIVERSITIES MR LEVY SAID ACC SERVICES ARE USED BY ABOUT 60 UNIVERSITIES IN THE NORTHEAST WHICH ACCOUNT FOR ABOUT ONETHIRD OF THE COMPANY'S US BUSINESS GETTING INTO THE UNIVERSITY NICHE WOULD HELP LDDS FIND MORE LONGTERM CONTRACTS WITH LESSVOLATILE INCOME MR LEVY SAID 9403220034 940322 BUSINESS BRIEF CONSOLIDATED STORES CORP VALUE MERCHANTS SIGNS PACT TO SELL ASSETS OF TWO UNITS CONSOLIDATED STORES CORP SAID IT SIGNED A PURCHASE AGREEMENT WITH MILWAUKEEBASED VALUE MERCHANTS INC TO ACQUIRE THE ASSETS OF VALUE'S WISCONSIN TOY WHOLESALE DIVISION AND TOY LIQUIDATOR RETAIL STORES IN A CASH TRANSACTION VALUED AT 20 MILLION TO 25 MILLION CONSOLIDATED SAID NO DEBT OR FINANCING WOULD BE ISSUED FOR THE ACQUISITION AND THAT IT WOULD BE PAID THROUGH INTERNAL FUNDS AND EXISTING CREDIT FACILITIES VALUE MERCHANTS AND ITS SUBSIDIARY EVERYTHING'S A DOLLAR INC ARE REORGANIZING UNDER THE PROTECTION OF THE US BANKRUPTCY COURT AND THE IMPENDING ACQUISITION IS SUBJECT TO COURT APPROVAL CONSOLIDATED SAID CONSOLIDATED A CLOSEOUT MERCHANDISE RETAILER AND WHOLESALER BASED IN COLUMBUS OHIO SAID THE PURCHASE WOULD ADD BETWEEN 80 AND 86 STORES TO ITS 618 STORES 9403220033 940322 TEXAS INDUSTRIES REDEMPTION DALLAS TEXAS INDUSTRIES INC SAID IT WILL REDEEM THE REMAINING 475 MILLION OF THE COMPANY'S 9 CONVERTIBLE SUBORDINATED DEBENTURES OUTSTANDING DUE JAN 15 2008 THE REDEMPTION DATE IS APRIL 11 THE COMPANY SAID BONDHOLDERS MAY EITHER EXCHANGE THEIR BONDS FOR CASH AT PAR VALUE PLUS ACCRUED INTEREST OR MAY CONVERT THEM INTO TEXAS INDUSTRIES COMMON AT A CONVERSION PRICE OF 3274 A SHARE IF BONDHOLDERS CHOOSE TO CONVERT ALL BONDS INTO COMMON STOCK ABOUT 145 MILLION COMMON SHARES WILL BE ISSUED ACCORDING TO TEXAS INDUSTRIES A PRODUCER OF STEEL CEMENT AND CONCRETE PRODUCTS 9403220032 940322 INTERNATIONAL BRAZIL'S INDUSTRIAL OUTPUT IS UP RIO DE JANEIRO BRAZIL'S INDUSTRIAL PRODUCTION IN JANUARY WAS AT ITS HIGHEST LEVEL SINCE APRIL 1987 ACCORDING TO A GOVERNMENT REPORT INDUSTRIAL PRODUCTION GREW 9 FROM JANUARY 1993 AND WAS 43 HIGHER THAN IN DECEMBER 1993 THE NATIONAL INSTITUTE OF GEOGRAPHY AND STATISTICS SAID 9403220031 940322 BUSINESS BRIEF MIDLANTIC CORP REGULATORS LIFT RESTRICTIONS INCLUDING BAN ON DIVIDENDS MIDLANTIC CORP AND ITS MIDLANTIC NATIONAL BANK SUBSIDIARY HAVE BEEN FREED OF REGULATORY RESTRICTIONS RESPONDING TO THE BANK'S MUCHIMPROVED FINANCIAL CONDITION THE FEDERAL RESERVE BANK OF NEW YORK AND THE COMPTROLLER OF THE CURRENCY LIFTED REGULATORY AGREEMENTS THAT HAD AMONG OTHER THINGS PREVENTED THE EDISON NJ BANKING COMPANY FROM PAYING A DIVIDEND HAMMERED BY NONPERFORMING REALESTATE LOANS THE BANK HAD BEEN OPERATING UNDER AN AGREEMENT WITH THE COMPTROLLER SINCE DECEMBER 1990 BUT THE BANK HAS SINCE CLEANED UP ITS BALANCE SHEET MADE MASSIVE CUTS IN ITS OPERATING COSTS AND RETURNED TO PROFITABILITY THIS IS AN ENDORSEMENT OF THE COMPANY'S RECOVERY SAID CAROLE BERGER A BANK ANALYST WITH SALOMON BROTHERS INC SHE PREDICTS THE BANK WILL RESTORE THE DIVIDEND LATER THIS YEAR OR FOR SURE SOMETIME NEXT YEAR A COMPANY REPRESENTATIVE SAID THE BOARD WILL TAKE UP THE DIVIDEND ISSUE IN THE NEAR FUTURE 9403220030 940322 MARKETING & MEDIA GANDER MOUNTAIN CATALOG PACT WILMOT WIS GANDER MOUNTAIN INC SAID IT HAS AN AGREEMENT WITH SEARS ROEBUCK & CO TO TEST TWO OUTDOORS CATALOGS THIS SPRING FEATURING FISHING CAMPING AND RELATED OUTDOOR EQUIPMENT GANDER MOUNTAIN SAID IT'S PROVIDING MERCHANDISING WAREHOUSING AND CUSTOMER SERVICE AND THAT SEARS IS PROVIDING THE USE OF ITS CATALOG DATABASE THE COMPANY SAID MORE THAN 500000 CATALOGS WILL BE MAILED 9403220029 940322 WHO'S NEWS AT NEW YORK TIMES BONUSES WERE CUT FOR EXECUTIVES IN '93 NEW YORK MOST OF THE TOP EXECUTIVES AT THE NEW YORK TIMES CO HAD THEIR BONUSES CUT IN 1993 WHILE THE COMPANY SIGNED A LUCRATIVE COMPENSATION PACT WITH THE CHAIRMAN OF THE BOSTON GLOBE'S PARENT COMPANY ACQUIRED LAST YEAR A SIMILAR PATTERN WAS FOLLOWED FOR MOST OF THE OTHER TOP OFFICERS INCLUDING PRESIDENT LANCE R PRIMIS WHOSE BONUS FELL ABOUT 13 TO 265760 AND ARTHUR OCHS SULZBERGER JR PUBLISHER OF THE COMPANY'S NEW YORK TIMES FLAGSHIP PAPER WHOSE BONUS FELL 46 TO 194089 THE EXCEPTION WAS CHIEF FINANCIAL OFFICER DAVID L GORHAM WHOSE SALARY ROSE 44 WHILE HIS BONUS INCREASED 64 THE COMPANY SAID IN RECOGNITION OF HIS ROLE IN CONNECTION WITH THE NEGOTIATION AND COMPLETION OF THE GLOBE DEAL UNDER ITS AGREEMENT TO ACQUIRE AFFILIATED PUBLICATIONS INC PARENT OF THE GLOBE LAST OCTOBER NEW YORK TIMES CO AGREED TO EMPLOY WILLIAM O TAYLOR AFFILIATED'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER UNTIL DEC 31 1998 DURING THAT TIME MR TAYLOR IS TO RECEIVE HIS CURRENT SALARY AND BENEFITS AS ADJUSTED IN THE ORDINARY COURSE IF HE IS FIRED NEW YORK TIMES CO AGREED TO CONTINUE TO PAY HIM A SALARY AND BENEFITS BASED ON A CERTAIN FORMULA A SPOKESMAN FOR THE NEW YORK TIMES SAID THE COMPANY ISN'T REQUIRED TO DISCLOSE MR TAYLOR'S SALARY BECAUSE HE ISN'T IN THE TOP FIVE 9403220028 940322 INTERNATIONAL BRIEF PORSCHE AG NONVOTING SHARES ARE SOLD TO BUY NEW VOTING STOCK SEVERAL MEMBERS OF THE FOUNDING FAMILIES OF GERMANY'S PORSCHE AG SOLD A PORTION OF THEIR NONVOTING SHARES TO FINANCE ACQUISITION OF NEW VOTING STOCK IN TODAY'S RIGHTS ISSUE THE COMPANY CONFIRMED YESTERDAY GERMANY'S PIECH AND PORSCHE FAMILIES HOLD 100 OF THE COMPANY'S COMMON SHARES WHICH CARRY VOTING RIGHTS THAT HOLDING IN TURN AMOUNTS TO EXACTLY 50 OF THE COMPANY'S TOTAL EQUITY CAPITAL WITH THE REMAINING 50 CONSISTING OF FREELY TRADED NONVOTING PREFERRED SHARES AS PART OF THE CAPITAL INCREASE THE TWO FAMILIES HAVE AGREED TO BUY ALL THE COMMON SHARES IN ORDER TO PRESERVE THEIR 100 VOTINGRIGHTS RATIO WITHIN THE CURRENT SHAREHOLDING STRUCTURE UNDER THE CAPITAL INCREASE PORSCHE WILL CREATE 175000 NEW COMMON SHARES AND 175000 NEW PREFERRED SHARES THEY WILL BE OFFERED IN A 1TO4 SUBSCRIPTION AND PRICED AT 575 MARKS 339 PORSCHE ALSO CONFIRMED THAT GROUP SALES ROSE 20 TO 980 MILLION MARKS 5782 MILLION IN THE FISCAL FIRST HALF ENDED IN JANUARY FROM 820 MILLION MARKS A YEAR EARLIER AND IT REVISED ITS SIXMONTH GROUP LOSS TO 114 MILLION MARKS FROM A PRELIMINARY 115 MILLION MARKS COMPARED WITH A 120 MILLION MARK LOSS A YEAR EARLIER 9403220027 940322 GM CLAIMS SPEED WAS FACTOR IN ACCIDENTS PICKUP TRUCKS DETROIT GENERAL MOTORS CORP SAID THAT A NEW STUDY OF FATAL ACCIDENTS INVOLVING ITS CONTROVERSIAL PICKUPS SHOWS THEY WERE BEING DRIVEN FASTER BEFORE ACCIDENTS THAN WERE COMPARABLE FORD PICKUPS GM'S CONTENTION THAT SPEED CONTRIBUTED TO ACCIDENTS INVOLVING ITS 19731987 PICKUPS WAS INCLUDED IN 27 BOXES OF DOCUMENTS IT SUBMITTED TO FEDERAL SAFETY REGULATORS GM MADE THE SUBMISSION AS PART OF ITS CONTINUING EFFORT TO DEFEND THE TRUCKS WHICH HAVE SIDEMOUNTED GASOLINE TANKS FEDERAL SAFETY REGULATORS ASKED GM TO RECALL ITS TRUCKS BECAUSE THEY WERE INVOLVED IN MORE FIERY FATAL SIDE IMPACTS THAN WERE ITS COMPETITORS WHICH HAVE TANKS MOUNTED INSIDE THE TRUCKS' FRAME RAILS GM HAS SOUGHT TO SHOW THAT DRIVER BEHAVIOR NOT ITS FUELSYSTEM DESIGN COULD ACCOUNT FOR THE DIFFERENCE GM SAID THAT ITS ANALYSIS OF FATAL ACCIDENT REPORTS INVOLVING THE FORD AND GM PICKUPS SHOWS THAT ON AVERAGE FORD TRUCKS WERE BEING DRIVEN AT 40 MILES PER HOUR AND GM TRUCKS WERE BEING DRIVEN AT 43 MILES PER HOUR BEFORE THEY WERE INVOLVED IN SIDE ACCIDENTS GM ALSO ARGUED THAT WHEN ALL ACCIDENTS ARE ANALYZED ITS TRUCKS ARE SUBSTANTIALLY SAFER THAN MOST OTHER VEHICLES FEDERAL REGULATORS SAID GM'S SUBMISSION WHICH WAS MADE IN FEBRUARY AND RELEASED TO THE PUBLIC THIS WEEK CONSISTS MOSTLY OF UPDATES OF ACCIDENTS ALREADY DISCUSSED BY GM IN PREVIOUS SUBMISSIONS 9403220026 940322 BUSINESS BRIEF KOMAG INC RESULTS RESTATED TO SHOW WIDER 4THPERIOD SHARE LOSS KOMAG INC RESTATED ITS PREVIOUSLY ANNOUNCED FISCAL FOURTHQUARTER RESULTS TO SHOW A WIDER LOSS PER SHARE BUT THE TOTAL NET LOSS FOR THE PERIOD REMAINS UNCHANGED THE MILPITAS CALIF COMPUTER HARDDISK SUPPLIER'S RESTATED LOSS FOR THE FOURTH QUARTER ENDED JAN 2 WAS 297 MILLION OR 137 A SHARE AFTER A RESTRUCTURING CHARGE OF 354 MILLION OR 164 A SHARE THE PERSHARE FIGURES ARE BASED ON 216 MILLION SHARES OUTSTANDING KOMAG HAD REPORTED A NET LOSS OF 135 A SHARE BASED ON 22 MILLION SHARES OUTSTANDING KOMAG'S CHIEF FINANCIAL OFFICER WILLIAM POTTS JR SAID THE COMPANY ERRONEOUSLY INCLUDED COMMONSHARE EQUIVALENTS RELATED TO STOCK OPTIONS WHEN IT FIRST CALCULATED ITS RESULTS SEPARATELY KOMAG SAID IT OBTAINED WAIVERS OR AMENDMENTS TO LOAN COVENANTS COVERING 44 MILLION OF DEBT LAST MONTH THE COMPANY SAID THAT AS A RESULT OF ITS RESTRUCTURING CHARGE IT WAS IN VIOLATION OF ITS LOAN COVENANTS 9403220025 940322 BOEING GIVES OPTIONS TO SHRONTZ CONDIT TOTALING 84 MILLION SEATTLE BOEING CO CHAIRMAN FRANK SHRONTZ AND PRESIDENT PHIL CONDIT HAVE BEEN GRANTED STOCK OPTIONS TOTALING NEARLY 84 MILLION EXERCISABLE IF THE COMPANY'S STOCK PRICE INCREASES 53 FROM CURRENT LEVELS ACCORDING TO A NEW INCENTIVE PLAN OUTLINED IN THE COMPANY'S PROXY STATEMENT THE ONETIME SUPPLEMENTAL STOCKOPTION GRANTS WERE PROVIDED IN PART TO ADD AN INCENTIVE DURING THE SIGNIFICANT MARKET UNCERTAINTIES AND INTENSE COMPETITION IT FACES IN THE NEAR TERM IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BOEING CLOSED AT 46 DOWN 1 BOEING'S SHARE VALUE HAS SUFFERED FOR MUCH OF THE LAST THREE YEARS FROM WEAK AIRLINE ORDERS FOR NEW PLANES BUT INVESTORS' HOPES FOR A REBOUND HAVE BOOSTED THE STOCK PRICE NEARLY 6 A SHARE IN TRADING VALUE SINCE THE 4056ASHARE BASE PRICE FOR THE OPTIONS WAS ESTABLISHED ON DEC 13 1993 UNDER THE NEW INCENTIVE PLAN WHICH EXPIRES IN LATE 1998 MR SHRONTZ WOULD BE ABLE TO EXERCISE OPTIONS VALUED AT ABOUT 5140000 WHILE MR CONDIT'S OPTIONS WOULD BE WORTH 32 MILLION MR SHRONTZ COULD EXERCISE HALF HIS TOTAL 200000 OPTIONS WHEN THE STOCK PRICE HITS 64 A SHARE FOR A VALUE OF 2340000 THE REST OF HIS OPTIONS BECOME EXERCISABLE IN 50000SHARE INCREMENTS WHEN THE STOCK PRICE HITS 67 AND THEN 70 A COMPANY SPOKESMAN SAID THAT THE PLAN IS JUSTIFIABLE SINCE SHAREHOLDERS WOULD REALIZE 816 BILLION IN GAINS ABOVE THE BASE PRICE IF THE STOCK HITS 64 A SHARE 9403220024 940322 BUSINESS BRIEF WILCO INTERNATIONAL LTD MERRILL LYNCH AND ADP BUY SIGNIFICANT STAKES IN FIRM WILCO INTERNATIONAL LTD A DEVELOPER OF A COMPUTERIZED BACKOFFICE PROCESSING SYSTEM SAID MERRILL LYNCH & CO AND AUTOMATIC DATA PROCESSING INC ACQUIRED SIGNIFICANT STAKES IN THE COMPANY ADP BASED IN ROSELAND NJ ACQUIRED ABOUT 19 WHILE MERRILL LYNCH IN NEW YORK PURCHASED 625 LONDONBASED WILCO SAID SPECIFIC FINANCIAL TERMS WEREN'T DISCLOSED IN THE YEAR ENDING AUG 31 1993 WILCO EARNED 23 MILLION ON REVENUE OF 9 MILLION A COMPANY SPOKESWOMAN FORECAST EARNINGS OF 34 MILLION AND SALES OF 135 MILLION FOR THE CURRENT FISCAL YEAR IN THE PAST YEAR WILCO'S STAFF HAS RISEN FROM 40 TO 140 EMPLOYEES WILCO'S BACKOFFICE COMPUTER SYSTEM GLOSS IS A CLEARANCE AND SETTLEMENT SYSTEM WITH MULTICURRENCY CAPABILITY PORTABILITY AND A UNIXBASED FORMAT ADP PROVIDES COMPUTERIZED TRANSACTION PROCESSING MERRILL LYNCH A BROKERAGE FIRM HAS BEEN USING THE SYSTEM IN FRANKFURT AND PLANS TO TEST IT THROUGHOUT ITS GLOBAL OPERATIONS WILCO SAID 9403220023 940322 BUSINESS BRIEF KRUG INTERNATIONAL CORP FIRM SAYS IT WON'T ACHIEVE PROJECTION OF 20 PROFIT GAIN THE DAYTON OHIO COMPANY ALSO SAID IT WON'T COMPLETE THE REFINANCING OF ITS 118 MILLION IN DOMESTIC BANK LOANS BY THE END OF THE FISCAL YEAR AS IT HAD SAID A SPOKESWOMAN DECLINED TO SAY WHAT MIGHT HAPPEN IF KRUG FAILS TO REFINANCE THE LOANS BY JULY 29 WHEN THEY ARE DUE BUT THE COMPANY SAID IT REMAINS HOPEFUL IT CAN COMPLETE THE REFINANCING BY THE JUNE MAILING OF ITS ANNUAL REPORT WHILE EARNINGS FROM CONTINUING OPERATIONS WON'T MEET PROJECTIONS THE COMPANY SAID IT STILL EXPECTS TO POST A GAIN FROM FISCAL 1993 WHEN IT EARNED 26 MILLION KRUG ALSO BLAMED HIGHER COSTS FROM THE RESOLUTION OF LABOR NEGOTIATIONS IN THE UK FOR ITS LOWERTHANPROJECTED EARNINGS FROM CONTINUING OPERATIONS KRUG ALSO SAID IT SOLD ITS ALPHA NET NETWORK SYSTEMS INTEGRATION BUSINESS TO NBI INC OF LONGMONT COLO 9403220022 940322 GM IN BID TO RETAIN TALENT AWARDS HEFTY RAISES TO 3400 TOP EXECUTIVES BY ROBERT L SIMISON STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP WORRIED ABOUT RETAINING EXECUTIVE TALENT AFTER A FOURYEAR BONUS DROUGHT GAVE ITS 3400 TOP EXECUTIVES SUBSTANTIAL RAISES IN BASE SALARY LAST YEAR SEPARATELY IN ITS PRELIMINARY PROXY STATEMENT GM PROPOSED THAT SHAREHOLDERS APPROVE A DOUBLING OF THE AUTHORIZED NUMBER OF COMMON SHARES TO TWO BILLION ALTHOUGH GM MAINTAINED THAT IT DOESN'T PLAN TO USE THE AUTHORIZATION FOR ANYTHING BESIDES ROUTINE PREFERENCE CONVERSIONS AND STOCKOPTION PLANS SUCH A MOVE WOULD CLEAR THE WAY FOR A NEW ISSUE TO PAY FOR NEWPRODUCT DEVELOPMENT OR TO REDUCE THE COMPANY'S 223 BILLION PENSION LIABILITY GM CURRENTLY HAS 718652709 COMMON SHARES OUTSTANDING WITH A FURTHER 17825000 SHARES RESERVED FOR THE CONVERSION OF ITS SERIES A PREFERENCE STOCK INTO COMMON GM SAID THE EXECUTIVE RAISES ARE PART OF A RETHINKING BY THE BOARD OF THE NO 1 AUTO MAKER'S COMPENSATION POLICIES UNDER NEW GUIDELINES ADOPTED LAST YEAR THE BOARD ALSO IMPOSED STOCKOWNERSHIP GUIDELINES FOR THE COMPANY'S 65 TOP EXECUTIVES ALTHOUGH THE RAISES RANGED FROM 11 FOR WILLIAM E HOGLUND TO 50 FOR G RICHARD WAGONER JR BOTH OF WHOM ARE EXECUTIVE VICE PRESIDENTS THE TOTAL COMPENSATION OF GM'S TOP OFFICERS LAGGED FAR BEHIND THAT OF RIVAL CHRYSLER CORP WHICH HAS BECOME ONE OF THE WORLD'S MOST PROFITABLE AUTO MAKERS JOHN F SMITH JR GM PRESIDENT AND CHIEF EXECUTIVE OFFICER EARNED A SALARY OF 1375000 FOR 1993 UP 375 FROM THE STATED 1 MILLION A YEAR HE WAS EARNING AT THE END OF 1992 MR SMITH WHO WAS PROMOTED TO HIS CURRENT POSITION IN NOVEMBER 1992 ACTUALLY RECEIVED 748000 IN SALARY FOR 1992 IN 1993 MR SMITH ALSO REALIZED 45305 THROUGH THE EXERCISE OF STOCK OPTIONS LAST WEEK CHRYSLER DISCLOSED THAT CHAIRMAN ROBERT J EATON WAS PAID 9259786 INCLUDING A 4478272 GAIN FROM THE EXERCISE OF STOCK OPTIONS AND OTHER PERQUISITES FORD MOTOR CO IS EXPECTED TO RELEASE ITS PROXY STATEMENT IN EARLY APRIL IN AN EXPLANATION OF ITS NEW COMPENSATION POLICY GM'S BOARD SAID THE EXECUTIVE RAISES ARE INTENDED TO PROVIDE A MORE COMPETITIVE LEVEL OF FIXED COMPENSATION WHICH WOULD ENABLE THE COMPANY TO RETAIN CRITICALLY SKILLED EXECUTIVE TALENT WITH THE RECENT LACK OF BONUSES THIS HAS BECOME A BIG CONCERN AT THE SAME TIME TO FURTHER UNDERSCORE THE IMPORTANCE OF LINKING EXECUTIVE AND STOCKHOLDER INTERESTS THE BOARD'S COMPENSATION COMMITTEE SET A REQUIREMENT THAT THE TOP 65 EXECUTIVES HOLD GM COMMON STOCKS WITH A MINIMUM AGGREGATE MARKET VALUE EQUIVALENT TO THE EXECUTIVE'S ANNUAL SALARY FORMAL GUIDELINES WEREN'T SET FOR THE BALANCE OF THE 3400MEMBER EXECUTIVE CORPS FOR MR SMITH CHIEF EXECUTIVE THE REQUIREMENT IS TO HOLD GM SHARES WORTH TWICE HIS ANNUAL SALARY GM SAID THE COMPANY SAID ALL FIVE MEMBERS OF THE PRESIDENT'S COUNCIL HAVE ALREADY SATISFIED THE REQUIREMENT A SPOKESWOMAN SAID A DEADLINE HASN'T BEEN SET FOR THE OTHER OFFICERS TO COMPLY EXECUTIVECOMPENSATION EXPERTS SAY SETTING A STOCKOWNERSHIP REQUIREMENT HAS BECOME A GROWING TREND IN AMERICAN INDUSTRY A SURVEY OF 642 COMPANIES BY WILLIAM H MERCER INC FOUND THAT GUIDELINES FOR CHIEF EXECUTIVE OFFICERS TYPICALLY RANGE FROM THREE TO FIVE TIMES SALARY IN THE AUTO INDUSTRY FORD DOESN'T HAVE SUCH A REQUIREMENT AND A CHRYSLER SPOKESMAN SAID THAT WHILE A GUIDELINE FOR EXECUTIVES EXISTS IT ISN'T A REQUIREMENT GM SAID IT ISSUED STOCK OPTIONS COVERING 25000 TO 120000 GM COMMON SHARES TO DIFFERENT MEMBERS OF THE PRESIDENT'S COUNCIL ALL EXERCISABLE AT A PRICE OF 3388 THE MARKET VALUE WHEN THE OPTIONS WERE GRANTED IN JANUARY 1993 YESTERDAY GM SHARES CLOSED AT 59625 DOWN 25 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MR SMITH WAS GRANTED OPTIONS TO BUY 120000 GM SHARES 9403220021 940322 FORD TO ADD A THIRD SHIFT AT TRUCK PLANT CONFIDENCE IN THE ECONOMY SEEN IN PLAN TO STEP UP BATTLE FOR TRUCK MARKET BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL IN A MOVE THAT SIGNALS CONFIDENCE IN THE ECONOMIC RECOVERY FORD MOTOR CO PLANS TO HIRE ABOUT 900 NEW WORKERS FOR A THIRD WORK SHIFT AT A KENTUCKY TRUCK PLANT FORD WHICH HAS UNTIL NOW RESISTED THE RECENT INDUSTRY TREND TOWARD THREESHIFT PRODUCTION ALSO IS STUDYING THE ADDITION OF THIRD SHIFTS AT OTHER PLANTS THAT BUILD HIGHLY PROFITABLE TRUCK MODELS THE MOVES ESCALATE AN INDUSTRYWIDE BATTLE FOR SHARE IN THE RAPIDLY GROWING US MARKET FOR PICKUP TRUCKS MINIVANS AND SPORTUTILITY VEHICLES FORD MAY ANNOUNCE AS EARLY AS THE FIRST WEEK IN APRIL THAT IT WILL ADD A THIRD WORK TURN AT THE LOUISVILLE KY PLANT THAT BUILDS ITS POPULAR EXPLORER SPORTUTILITY VEHICLE THE EXPANSION IS PART OF A PLAN TO CONTINUE BUILDING THE AEROSTAR MINIVAN IN ST LOUIS MO FORD IS CONSIDERING ADDING AN ADDITIONAL SHIFT THIS SUMMER AT ITS WAYNE MICH TRUCK PLANT WHERE IT ASSEMBLES BRONCOS AND FULLSIZED PICKUP TRUCKS SAY UNION LEADERS AT THAT FACILITY FORD OFFICIALS SAY THEY ARE STILL STUDYING THAT MOVE WHICH COULD RESULT IN 800 NEW JOBS FORD'S MOVES REPRESENT A POTENTIAL CHALLENGE TO NO 1 AUTO MAKER GENERAL MOTORS CORP WHICH HAS SEEN ITS LEAD IN US LIGHTTRUCK SALES STEADILY WHITTLED AWAY BY FORD AND CHRYSLER CORP FORD EXECUTIVES HAVE BEEN INCREASINGLY EXPLICIT IN RECENT MONTHS ABOUT THEIR AMBITIONS TO REPLACE GM AS THE INDUSTRY'S NO 1 TRUCK SELLER FORD ALSO WANTS TO TAKE A CHUNK OUT OF CHRYSLER'S ROUGHLY 50 SHARE OF THE MINIVAN MARKET BY HOLDING ON TO THE AEROSTAR EVEN AS IT LAUNCHES ITS WINDSTAR MINIVAN THIS SPRING ALTHOUGH FORD MAKES THE BESTSELLING PICKUP GM SELLS MORE TRUCKS OVERALL THROUGH MORE SALES DIVISIONS INCLUDING CHEVROLET AND GMC TRUCK FORD'S AMBITIONS TO GAIN SALES HAVE BEEN FRUSTRATED IN RECENT MONTHS BY LACK OF CAPACITY AFTER PAINFULLY PARING ITS WORKFORCE IN HALF FROM 1978 TO 1982 IT WAS RELUCTANT TO ADD TO ITS PAYROLL IT PREFERRED EXPANDING PRODUCTION THROUGH OVERTIME RATHER THAN BY HIRING ADDITIONAL WORKERS TO STAFF EXTRA SHIFTS OR NEW FACTORIES MEANWHILE GM AND CHRYSLER HAVE PUSHED AHEAD WITH PLANS TO CAPITALIZE ON RISING TRUCK SALES BY ADDING THIRD SHIFTS GM LAST MONTH SAID IT WOULD BEGIN THREESHIFT WORK AT TWO MICHIGAN PLANTS THAT BUILD VANS AND PICKUPS CHRYSLER IS ADDING A THIRD SHIFT TO ITS DETROIT PLANT THAT BUILDS GRAND CHEROKEES A RIVAL TO THE EXPLORER NOW UNDER NEW CHAIRMAN ALEXANDER J TROTMAN FORD IS REVERSING STRATEGY AND EMBRACING THREESHIFT PRODUCTION FORD RECENTLY SENT NINE OFFICIALS OF THE LOCAL UNION THAT REPRESENTS THE WAYNE MICH TRUCK PLANT TO VISIT GM'S LORDSTOWN OHIO ASSEMBLY PLANT WHICH IS OPERATING WITH THREE WORK CREWS I WAS QUITE IMPRESSED SAID DOUG HOWARD UNION CHAIRMAN AT THE WAYNE PLANT 9403220020 940322 BUSINESS BRIEF AUTOTOTE CORP FISCAL 1STPERIOD PROFIT GAIN MISSES FORECASTS STOCK SLIPS AUTOTOTE CORP'S STOCK FELL 8 AS STRONG EARNINGS GAINS FOR THE FIRST FISCAL QUARTER FAILED TO STAND UP TO ANALYST'S FORECASTS FOR THE PERIOD ENDED JAN 31 THE NEWARK DEL MAKER OF COMPUTERIZED WAGERING EQUIPMENT SAID NET INCOME SOARED TO 19 MILLION OR SIX CENTS A SHARE FROM 615000 OR THREE CENTS A SHARE FOR THE YEAREARLIER PERIOD REVENUE MORE THAN DOUBLED TO 269 MILLION ANALYSTS HAD PREDICTED NET INCOME WOULD BE AS HIGH AS EIGHT CENTS A SHARE FOR THE FIRST QUARTER IN NASDAQ TRADING AUTOTOTE SHARES FELL 2375 TO 2625 AUTOTOTE CITED SEASONALITY IN ITS CORE BUSINESS PARIMUTUEL WAGERING EQUIPMENT AND FACILITIES MANAGEMENT TO RACE TRACKS OFFTRACK WAGERING LOTTERIES AND LEGALIZED SPORTS BETTING FACILITIES THE COMPANY SAID PROFIT WAS ALSO INFLUENCED BY THE SEVERE COLD WEATHER IN THE NORTHEAST AND THE EARTHQUAKE IN CALIFORNIA 9403220019 940322 HOUSE PANEL DRAFTS MEASURE FOR HEALTH CARE LIGHTER BURDEN FOR SMALLER BUSINESSES IS PLANNED THAN CLINTON PROPOSAL BY DAVID ROGERS AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE ENERGY AND COMMERCE COMMITTEE LEADERSHIP IS DRAFTING A HEALTHCARE BILL THAT WOULD PLACE A LIGHTER BURDEN ON SMALL BUSINESS THAN WOULD THE CLINTON ADMINISTRATION'S PLAN WHILE REQUIRING COMPANIES WITH MORE THAN 1000 EMPLOYEES TO PAY A 1 PAYROLL TAX THE COST OF THE STANDARD BENEFITS PACKAGE TO BUSINESS WOULD BE REDUCED BY REQUIRING INDIVIDUALS TO PAY HIGHER OUTOFPOCKET EXPENDITURES AND THE MEASURE WOULD SCRAP THE MANDATORY ASPECT OF THE PRESIDENT'S HEALTHINSURANCE PURCHASING ALLIANCES IN FAVOR OF A MORE VOLUNTARY SYSTEM THAT GIVES LARGER COMPANIES MORE OPPORTUNITY TO SELFINSURE AT THE HEART OF THE BILL ARE A SERIES OF TRADEOFFS BETWEEN SMALL AND BIG BUSINESS TO GIVE COMPANIES MORE FLEXIBILITY WHILE STILL DEMANDING SOME CONTRIBUTION IN THE FORM OF A PAYROLL TAX AT ONE END OF THE SCALE COMPANIES WITH 10 OR FEWER EMPLOYEES WOULD HAVE THE OPTION OF COVERING THEIR EMPLOYEES AND RECEIVING SUBSIDIES FROM THE GOVERNMENT OR THEY COULD SIMPLY PAY A GRADUATED TAX OF 1 TO 2 OF PAYROLL TO HELP COVER THE COST OF THEIR WORKERS' HEALTH INSURANCE AT THE OTHER END COMPANIES WITH 1000 OR MORE EMPLOYEES WOULD BE BARRED FROM THE ALLIANCES FOR EIGHT YEARS BUT REQUIRED TO PAY NOT ONLY 80 OF THEIR WORKERS' PREMIUMS BUT ALSO A 1 PAYROLL TAX TO HELP FUND THE LARGER SYSTEM THE DRAFT IS THE PRODUCT OF NEGOTIATIONS AMONG MODERATE DEMOCRATS ON THE COMMITTEE CHAIRMAN JOHN DINGELL D MICH AND REP HENRY WAXMAN D CALIF HEAD OF THE HEALTH SUBCOMMITTEE AND AFTER WEEKS OF FRUSTRATION MR WAXMAN INDICATED LAST NIGHT THAT HE IS HOPEFUL THE DEMOCRATS WILL HAVE A WORKING MAJORITY THAT CAN REPORT A BILL TO THE HOUSE FLOOR AFTER THE SPRING RECESS WE HAVE MADE CONCESSIONS TO BRING ALONG THE VOTES THE CALIFORNIAN SAID I'M ENCOURAGED WE MAY HAVE A BREAKTHROUGH THOUGH WE DON'T HAVE THE VOTES YET THE PLAN IS LESS GOVERNMENTORIENTED THAN A SECOND ALTERNATIVE NOW BEFORE THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE BUT ALSO BORROWS FROM SOME OF THE COMPROMISES TESTED THERE THE WAYS AND MEANS PANEL HOPES TO COMPLETE ITS WORK THIS WEEK IN ANTICIPATION OF FULL COMMITTEE ACTION AFTER THE RECESS ENDS IN MIDAPRIL IN ITS WORK YESTERDAY DEMOCRATS UPHELD COST CONTROLS AKIN TO THOSE SOUGHT BY THE PRESIDENT IN A FURTHER EFFORT TO REIN IN HEALTHCARE COSTS THE PANEL ALSO APPROVED A PROVISION TO LIMIT NONECONOMIC DAMAGES IN MEDICAL MALPRACTICE CASES TO NO MORE THAN 350000 TWO DEMOCRATS REPS BENJAMIN CARDIN OF MARYLAND AND MICHAEL ANDREWS OF TEXAS JOINED THE SUBCOMMITTEE'S FOUR REPUBLICANS IN THE 65 VOTE APPROVING THE CAP AS NOW DRAFTED THE COST CONTROLS IN THE SUBCOMMITTEE BILL SET A GOAL OF SLOWING THE GROWTH IN OVERALL HEALTH EXPENDITURES BY TWO PERCENTAGE POINTS IN 1996 AND ONE ADDITIONAL POINT ANNUALLY THEREAFTER UNTIL HEALTH EXPENDITURES ARE RISING NO FASTER THAN THE NATION'S NOMINAL GROSS DOMESTIC PRODUCT FAILURE TO MEET THE 1996 GOAL COULD TRIGGER EXPLICIT GOVERNMENT RATESETTING ON MEDICAL SERVICES BEGINNING IN 1998 TO PICK UP VOTES THE DEMOCRATIC LEADERSHIP HAS BEEN WILLING TO MAKE SEVERAL ACCOMMODATIONS TO GIVE STATES MORE FLEXIBILITY FOR EXAMPLE IF A STATE STAYS WITHIN ITS OWN APPROVED SPENDING TARGETS IT COULD ESCAPE THE FEDERAL COSTCONTROL SYSTEM AND THE SUBCOMMITTEE YESTERDAY ADOPTED AN AMENDMENT BY REP GERALD KLECZKA D WIS THAT WOULD GUARD AGAINST PENALIZING ONE STATE FOR THE EXCESSES OF ANOTHER SIX OF THE PANEL'S SEVEN DEMOCRATS BANDED TOGETHER TO DEFEAT AN AMENDMENT OFFERED BY REP JIM MCCRERY R LA TO STRIKE THE EXPENDITURETARGET AND RATESETTING PROVISIONS FROM THE BILL HE PROPOSED INSTEAD LIMITING TAX BENEFITS FOR EMPLOYERPROVIDED HEALTH BENEFITS REP ANDREWS OF TEXAS WAS THE ONLY DEMOCRAT TO JOIN THE SUBCOMMITTEE'S FOUR REPUBLICANS IN VOTING FOR THE AMENDMENT MR MCCRERY ARGUED THAT LIMITING TAX BREAKS ON HEALTH BENEFITS WOULD SPUR EMPLOYERS AND EMPLOYEES TO SHOP FOR HEALTH COVERAGE MORE CAREFULLY AND QUESTION MEDICAL PRICES THE AMENDMENT SOUGHT TO ALLOW WORKERS TAXFREE TREATMENT FOR ONLY AN AMOUNT OF BENEFITS EQUAL TO THE AVERAGE COST OF A FEDERALLY DEFINED MINIMUM PACKAGE OF HEALTH BENEFITS EMPLOYER DEDUCTIONS FOR WORKER HEALTH BENEFITS WOULD BE CAPPED AT THAT LEVEL TOO TO SIMPLY PUT ON AT THIS TIME ARBITRARY COST CONTROLS I BELIEVE WILL LEAD US TO THE RATIONING OF HEALTH CARE MR MCCRERY SAID THE SUBCOMMITTEE WENT ON TO ADOPT BY VOICE VOTE A PROVISION PROPOSED BY REP JIM MCDERMOTT D WASH THAT WOULD WIPE OUT BY 2005 THE DISPARITY IN RATES THAT DOCTORS AND HOSPITALS RECEIVE FOR PATIENTS WITH PRIVATE INSURANCE AND PATIENTS IN GOVERNMENT PROGRAMS THE HOUSE ACTION CAME AS MEMBERS OF THE SENATE FINANCE COMMITTEE CONCLUDED A TWODAY HEALTHCARE RETREAT IN RURAL VIRGINIA WHERE MUCH OF THE DISCUSSION FOCUSED ON WHETHER THE GOVERNMENT SHOULD REQUIRE EMPLOYERS TO PROVIDE HEALTH COVERAGE FOR THEIR WORKERS I CAN ACCEPT MANDATES SEN BOB PACKWOOD R ORE SAID IN AN INTERVIEW AFTER THE RETREAT I THINK I'D PREFER INDIVIDUAL IF THEY COULD BE MADE TO WORK BUT I WOULDN'T REJECT EMPLOYER HE SAID HIS COLLEAGUES DIDN'T REACH ANY CONSENSUS ON MANDATES OTHER THAN A GENERAL REALIZATION THAT THEY WERE NEEDED TO ACHIEVE UNIVERSAL HEALTH COVERAGE 9403220018 940322 ALLSTATE LIFTS ESTIMATE OF EARTHQUAKE LOSSES BY 71 TO 600 MILLION NORTHBROOK ILL ALLSTATE CORP SAID ITS LOSSES FROM THE LOS ANGELES EARTHQUAKE WOULD BE 600 MILLION INSTEAD OF 350 MILLION BECOMING THE THIRD INSURER IN 10 DAYS TO RAISE DAMAGE ESTIMATES THE STREAM OF UPWARD REVISIONS COULD NUDGE HURRICANE HUGO OUT OF ITS SPOT AS THE SECONDLARGEST DISASTER IN US HISTORY WITH 42 BILLION OF CLAIMS PAID INDUSTRY EXPERTS INITIALLY PUT THE QUAKE'S INSURED DAMAGE AT 25 BILLION BUT NOW SAY LOSSES COULD TOP 4 BILLION AND VJ DOWLING OF PAULSEN DOWLING SECURITIES INC A BOSTON INSURANCE SPECIALIST BELIEVES IT COULD BE 5 BILLION OR MORE BY THE TIME THE DELAYED LOSSES COME IN FROM LINES SUCH AS BUSINESSINTERRUPTION INSURANCE ALLSTATE WHICH IS 80OWNED BY SEARS ROEBUCK & CO SAID THE 71 UPWARD REVISION FOR ITS ALLSTATE INSURANCE CO UNIT REFLECTS HIGHER LEVELS OF STRUCTURAL DAMAGE DETECTED IN DETAILED FOLLOWUP INSPECTIONS OF THOUSANDS OF DWELLINGS ALLSTATE STILL ESTIMATES 38000 CLAIMS IN ADDITION THE COMPANY SAID SEVERE WINTER STORMS IN THE EAST AND MIDWEST WILL CREATE PRETAX LOSSES OF ABOUT 150 MILLION THE TWIN PROBLEMS OF THE EARTHQUAKE AND BAD WEATHER WILL CAUSE AN OPERATING LOSS FOR THE FIRST QUARTER OF ABOUT 30 CENTS A SHARE AND A NET LOSS INCLUDING REALIZED CAPITAL GAINS OF ABOUT 15 CENTS A SHARE THE COMPANY SAID IN THE 1993 FIRST QUARTER ALLSTATE HAD OPERATING INCOME OF 2593 MILLION OR 61 CENTS A SHARE AND NET INCOME OF 3201 MILLION OR 75 CENTS A SHARE AT THAT TIME THE COMPANY HAD 431 MILLION SHARES OUTSTANDING NOW IT HAS 450 MILLION SHARES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ALLSTATE SHARES CLOSED AT 24 DOWN 50 CENTS 9403220017 940322 MARKETING & MEDIA GALLUP WANTS TO CRACK MOVIE RESEARCH AN NRG STRONGHOLD FOR PAST 15 YEARS BY RICHARD TURNER AND JOHN R EMSHWILLER STAFF REPORTERS OF THE WALL STREET JOURNAL HOLLYWOOD GALLUP ORGANIZATION INC SAID IT WILL ENTER THE 30 MILLION MOVIERESEARCH MARKET A FIELD DOMINATED FOR 15 YEARS BY NATIONAL RESEARCH GROUP NRG A UNIT OF SAATCHI & SAATCHI CO BECAME THE SUBJECT OF CONTROVERSY WHEN THE WALL STREET JOURNAL REPORTED IN DECEMBER THAT NUMEROUS FORMER EMPLOYEES CLAIMED TO HAVE DOCTORED RESEARCH DATA SOMETIMES AT THE REQUEST OF JOSEPH FARRELL THE COMPANY'S CHAIRMAN AND FOUNDER MR FARRELL DENIED THE CHARGES NRG SUPPLIES THREE MAJOR SERVICES TO MOVIEMAKERS THROUGH TELEPHONE POLLS IT TRACKS AUDIENCE AWARENESS AND WANTTOSEE FOR FILMS THAT HAVEN'T YET OPENED IT TESTS TRAILERS AND OTHER AD MATERIALS AND AT PREVIEW SCREENINGS IT GAUGES HOW MUCH AUDIENCES LIKED A MOVIE HOW THEY'D CHANGE IT AND WHETHER THEY'D RECOMMEND IT GALLUP A UNIT OF CLOSELY HELD GALLUP INC PRINCETON NJ IS THE LARGEST SURVEYRESEARCH AND POLLING FIRM IN THE US ALTHOUGH GALLUP WILL PROVIDE ALL THE SERVICES OFFERED BY NRG IT FACES OBSTACLES IN TRYING TO CRACK THE MARKET MR FARRELL HAS LONGSTANDING RELATIONSHIPS WITH EXECUTIVES AT EVERY STUDIO HE ALSO HAS A DATABASE OF THOUSANDS OF FILMS FROM WHICH HE CAN DRAW HISTORICAL CONCLUSIONS ABOUT SPECIFIC TYPES OF MOVIES MOREOVER NRG HAS CONTRACTS WITH ALL THE MAJOR STUDIOS EXCEPT MCA INC'S UNIVERSAL PICTURES FOR WHICH IT NEVERTHELESS DOES SOME WORK HOW MUCH EXCLUSIVITY THOSE CONTRACTS ACTUALLY CONTAIN IS A SUBJECT OF DEBATE WE'VE GOT AN OUT' SAID ONE STUDIO MARKETING CHIEF WHO IS AN NRG SUPPORTER AND IF GALLUP HAS A BETTER WAY OF DOING THINGS WE'LL LISTEN SAID ANOTHER TOP STUDIO EXECUTIVE WE LIKE COMPETITION AND WE'LL TAKE A LOOK AT IT GALLUP EXECUTIVES SAID THEIR INTEREST IN HOLLYWOOD MARKET RESEARCH PREDATED THE JOURNAL ARTICLE THE ALLEGATIONS HOWEVER ENHANCE THE LIKELIHOOD THAT PEOPLE WILL BE WILLING TO LISTEN TO WHAT WE HAVE TO OFFER SAID MICHAEL C GINN GALLUP SENIOR VICE PRESIDENT THUS FAR GALLUP HASN'T HELD ANY CONTRACT TALKS WITH THE MAJOR STUDIOS AND ALTHOUGH THE FIRM HAS CONDUCTED SOME 20000 INTERVIEWS WITH MOVIEGOERS SINCE JANUARY IT HAS YET TO CONDUCT A PREVIEW SCREENING THE COMPANY HOWEVER SAID IT HAS THE RESOURCES TO WAIT FOR POSSIBLE CONTRACTS EVEN WITHOUT THE STUDIOS GALLUP HOPES IT CAN DO WORK FOR INDEPENDENT FILM COMPANIES AND INDIVIDUAL FILMMAKERS WHO ALREADY PROVIDE BUSINESS TO A HANDFUL OF SMALL COMPETITORS TO NRG WHILE GALLUP WILL TRY TO CONVINCE STUDIOS THAT ITS METHODOLOGY IS SUPERIOR TO THAT OF NRG THE BASICS OF THE TWO SERVICES DON'T SEEM TO VARY GALLUP SAID IT WILL OFFER AN 800 NUMBER INTERACTIVE MOVIE POLL TO PROVIDE EXITPOLLING INFORMATION SLIGHTLY SOONER THAN NRG HAS BEEN OFFERING AND GALLUP SAID IT WILL HOLD MORE PREVIEW SCREENINGS OUTSIDE THE IMMEDIATE LOS ANGELES AREA WHERE SOME INDUSTRY OBSERVERS HAVE COMPLAINED THAT PREVIEW AUDIENCES ATTEND SO MANY SCREENINGS THAT THEY'RE PROFESSIONALS AT FILLING OUT QUESTIONNAIRES MANY STUDIO EXECUTIVES AND FILMMAKERS HOWEVER LIKE TO ATTEND SUCH SCREENINGS AND THEY LIKE THEM CLOSE TO HOME GALLUP SAID ITS TRACKING STUDIES WILL SAMPLE AUDIENCES FROM AROUND THE NATION RATHER THAN FROM 16 MARKETS AS NRG DOES BUT THE SIZE OF ITS SAMPLE 400 ON EACH OF THREE NIGHTS IS THE SAME GALLUP ALSO SAID IT WON'T EMULATE NRG'S PRACTICE OF TESTING AD MATERIALS AT SHOPPING MALLS AROUND THE COUNTRY WITH HANDHELD VIDEO DISPLAYS INSTEAD IT WILL TEST TV ADS AND TRAILERS IN AUDITORIUMS USING INVITED AUDIENCES NRG'S MR FARRELL DIDN'T RETURN PHONE CALLS SEEKING COMMENT ON GALLUP'S PLANS 9403220016 940322 BUSINESS BRIEF TYCO INTERNATIONAL LTD TENDER OFFER OF 95 MILLION PROPOSED FOR MARK CONTROLS TYCO INTERNATIONAL LTD IN A NEW ATTEMPT TO OUTBID RIVALS IN THE ACQUISITION OF MARK CONTROLS CORP PROPOSED A 19ASHARE TENDER OFFER OR A TOTAL OF ABOUT 95 MILLION FOR ALL THE COMPANY'S SHARES OUTSTANDING TYCO INTERNATIONAL BASED IN EXETER NH IS A MAKER OF FIREPROTECTION EQUIPMENT MARK CONTROLS IN SKOKIE ILL MANUFACTURES INDUSTRIAL VALVES MARK CONTROLS AGREED LAST WEEK TO BE ACQUIRED BY DANAHER CORP FOR 1775 A SHARE OR ABOUT 89 MILLION AFTER A BIDDING WAR INVOLVING RIVALS CRANE CO AND TYCO INTERNATIONAL WITH THE LATEST OFFER WILLIAM E BENDIX MARK CONTROLS CHIEF EXECUTIVE SAID THE COMPANY IS NOW IN DISCUSSIONS WITH BOTH TYCO AND DANAHER AND WILL EVALUATE THE ALTERNATIVES AVAILABLE 9403220014 940322 GONZALEZ DELAYS HOUSE PANEL HEARING GOP HOPED TO USE FOR WHITEWATER PROBE BY JOHN HARWOOD AND ELLEN JOAN POLLOCK STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE DEMOCRATIC CHAIRMAN OF THE HOUSE BANKING COMMITTEE ABRUPTLY POSTPONED A THURSDAY HEARING THAT REPUBLICANS HOPED TO USE TO INVESTIGATE THE WHITEWATER AFFAIR CALLING INSTEAD FOR FULL HEARINGS IN THE MATTER AT SOME UNSPECIFIED TIME THE CHAIRMAN REP HENRY GONZALEZ OF TEXAS ACCUSED REPUBLICANS OF CHARACTER ASSASSINATION AGAINST PRESIDENT AND HILLARY RODHAM CLINTON BUT SAID A FULL PUBLIC AIRING OF THE SUBJECT WAS NECESSARY HOUSE GOP LEADER BOB MICHEL OF ILLINOIS ECHOING OTHER REPUBLICANS DISMISSED THE SUGGESTION AS JUST ANOTHER DELAYING TACTIC AS LAWMAKERS PREPARE TO LEAVE TOWN FOR AN EXTENDED EASTER RECESS THIS WEEK WHATEVER MR GONZALEZ'S MOTIVATION HIS SURPRISE ANNOUNCEMENT COULD NONETHELESS HASTEN THE END OF A STANDOFF BETWEEN REPUBLICANS AND THE PRESIDENT'S DEMOCRATIC ALLIES HOUSE DEMOCRATIC LEADERS PLAN TO MEET WITH THEIR GOP COUNTERPARTS THIS MORNING TO DISCUSS WHEN AND HOW WE MIGHT CONSIDER HEARINGS SAID SPEAKER THOMAS FOLEY D WASH THE SENATE ALREADY HAS APPROVED A RESOLUTION CALLING FOR THE TWO PARTIES TO WORK OUT A DATE AND CONDITIONS FOR WHITEWATER HEARINGS AND HOUSE REPUBLICANS ARE PRESSING FOR A VOTE ON A SIMILAR RESOLUTION THIS WEEK SPECIAL COUNSEL ROBERT FISKE WHILE SAYING GENERALLY HE PREFERS THAT CONGRESS NOT HOLD HEARINGS WHILE HIS INVESTIGATION PROCEEDS HAS INDICATED HE WOULDN'T OBJECT IF LAWMAKERS EXAMINE ASPECTS RELATING TO WHITE HOUSE HANDLING OF THE AFFAIR ONCE HE FINISHES HIS OWN REVIEW OF THAT PORTION PERHAPS IN THE NEXT FEW WEEKS MR FOLEY ENDORSED THAT REASONING SAYING I THINK WE COULD PROCEED TO HAVE HEARINGS ON WHITE HOUSERELATED ISSUES AT THAT POINT MR GONZALEZ ANNOUNCED THE POSTPONEMENT OF THURSDAY'S OVERSIGHT HEARING INTO OPERATIONS OF THE RESOLUTION TRUST CORP BY RELEASING A HARSH LETTER TO IOWA REP JAMES LEACH THE PANEL'S RANKING REPUBLICAN THE CHAIRMAN ACCUSED MR LEACH WHO HAS LED THE HOUSE GOP'S INQUIRY INTO THE AFFAIR OF WILLFUL DISREGARD OF THE IMPACT ON MR FISKE'S INVESTIGATIONS AND SAID YOUR THREATS TO DISRUPT MADE IT NECESSARY TO PUT OFF THE HEARING IN A SEPARATE LETTER TO MR FOLEY MR GONZALEZ BLAMED REPUBLICANS FOR SPREADING HALFBAKED CONSPIRACY THEORIES AND OUTRIGHT LIES AGAINST THE CLINTONS I WOULD SUGGEST THAT HOUSE HEARINGS BE HELD IN A FORUM OF BROAD REACH POSSIBLY A SELECT COMMITTEE THAT CAN EXPLORE ALL THE CHARGES THAT HAVE BEEN BROUGHT FROM ACCUSATIONS OF OBSTRUCTION EVEN TO THE MOST ABSURD CONSPIRACY CHARGES HE WROTE DEMOCRATIC LEADERS SAID MR GONZALEZ WHO HAS COME UNDER INCREASING PARTISAN AND MEDIA PRESSURE FOR HIS PLEDGE TO KEEP WHITEWATERRELATED MATTERS OUT OF THURSDAY'S HEARING DIDN'T CONSULT THEM ON HIS DECISION MR FOLEY HIMSELF CALLED MR LEACH TO DISSOCIATE HIMSELF FROM THE CHAIRMAN'S HARSH WORDS THE WHITE HOUSE ALSO DISTANCED ITSELF FROM THE WRANGLING ON CAPITOL HILL THE HILL'S GOING TO HAVE TO DECIDE WHAT IT WANTS TO DO ON HEARINGS SPOKESMAN JEFF ELLER SAID WE'RE NOT GOING TO COMMENT MR LEACH WHO HAD ASKED SOME 40 WITNESSES TO TESTIFY AT THE HEARING EXPRESSED DISAPPOINTMENT WITH YESTERDAY'S DEVELOPMENT AND SUGGESTED MR GONZALEZ WAS SKIRTING COMPLIANCE WITH A LEGAL REQUIREMENT TO HOLD THE RTC OVERSIGHT HEARING BUT HE VOWED TO TAKE THE HOUSE FLOOR AND DISCLOSE SOME NEW INFORMATION ON WHITEWATER THIS WEEK MR FISKE'S INQUIRY WILL PROCEED IN LITTLE ROCK ARK TODAY AS DAVID HALE IS EXPECTED TO PLEAD GUILTY IN FEDERAL COURT TO TWO FELONY COUNTS OF MAIL FRAUD AND CONSPIRACY HIS TRIAL ON CHARGES UNRELATED TO WHITEWATER WAS TO BEGIN NEXT MONDAY BUT HE SETTLED WITH MR FISKE THIS WEEKEND THE HALE CASE HAS ATTRACTED ATTENTION BECAUSE HE HAS ALLEGED THAT MR CLINTON PRESSURED HIM IN 1986 TO MAKE A 300000 SMALL BUSINESS ADMINISTRATIONBACKED LOAN TO A COMPANY OWNED BY SUSAN MCDOUGAL MS MCDOUGAL AND HER HUSBAND JAMES WERE PARTNERS OF THE CLINTONS IN WHITEWATER DEVELOPMENT CO MR HALE HAS ALLEGED THAT PART OF THAT LOAN WOUND UP IN WHITEWATER ACCOUNTS MR HALE'S LITTLE ROCK ATTORNEY SAID HIS CLIENT HAS BEEN COOPERATING WITH MR FISKE FOR ABOUT TWO WEEKS HE HAS AND WILL COOPERATE IN EVERY WAY POSSIBLE INCLUDING SUPPLYING DOCUMENTS AND TESTIMONY SAID THE ATTORNEY RANDY COLEMAN MR FISKE DECLINED TO COMMENT ON THE PLEA AGREEMENT ASKED YESTERDAY ABOUT MR HALE'S ALLEGATIONS PRESIDENT CLINTON ANGRILY REPLIED THIS IS ALL A BUNCH OF BULL ON A TRIP TO FLORIDA TO PROMOTE HIS HEALTHCARE PLAN THE PRESIDENT SAID MY FAITH THAT THE TRUTH WILL WIN OUT HAS BEEN SORELY TESTED IN THE LAST FEW WEEKS BUT IT'S STILL THERE IN A REPORT RELEASED YESTERDAY THE GENERAL ACCOUNTING OFFICE SAID IT FOUND NO EVIDENCE TO SUPPORT OR REFUTE THE CONFLICTING CLAIMS ABOUT WHAT ROLE MR CLINTON MAY HAVE PLAYED IN THE SBABACKED LOAN THE GAO THE INVESTIGATIVE ARM OF CONGRESS DID SAY THAT IT WAS AN EXAMPLE OF LOANS MADE BY MR HALE TO PERSONS WITH QUESTIONABLE ELIGIBILITY A LAWYER INVOLVED IN THE HALE PROSECUTION SAID HE HADN'T SEEN ANY DOCUMENTED EVIDENCE THAT SOME OF THE MONEY LENT TO MS MCDOUGAL HAD BEEN TRANSFERRED TO WHITEWATER BUT SAM HEUER A LITTLE ROCK LAWYER FOR JAMES MCDOUGAL SAID HE BELIEVED THE MONEY WAS USED BY WHITEWATER IN 1986 TO PURCHASE MORE THAN 800 ACRES OF LAND NEAR LITTLE ROCK FROM INTERNATIONAL PAPER CO AT THE TIME MR MCDOUGAL EXPECTED THE CLINTONS TO GET OUT OF THE WHITEWATER INVESTMENT ACCORDING TO MR HEUER WHEN THEY DIDN'T MR MCDOUGAL TRANSFERRED THE LAND TO GREAT SOUTHERN LAND CO WHICH HE OWNED WITHOUT THE CLINTONS THE WHITE HOUSE HAS SAID THE CLINTONS KNEW NOTHING ABOUT THESE TRANSACTIONS 9403220013 940322 MACY'S BOARD FAILS TO AGREE ON PROPOSAL FOR REORGANIZATION NEW YORK RH MACY & CO'S BOARD RIVEN BY INTERNAL DISSENSION FAILED TO AGREE ON AN OUTLINE OF A REORGANIZATION PLAN FOR THE RETAILER WHICH IS STRUGGLING TO STAY INDEPENDENT AFTER IT LEAVES BANKRUPTCYLAW PROTECTION CHIEF EXECUTIVE OFFICER MYRON E ULLMAN III ASKED CYRUS R VANCE THE COURTAPPOINTED MEDIATOR FOR ONE MORE DAY TO COME UP WITH THE COMPANY'S PROPOSAL WHICH CREDITORS ARE SCHEDULED TO HEAR TOMORROW THE STALEMATE COMES AS THE RESULT OF AN 11THHOUR MANEUVER BY BOARD MEMBER LAURENCE TISCH WHO URGED MACY'S DIRECTORS TO WEIGH ALTERNATIVES TO THE PLAN MACY MANAGEMENT HAS BEEN NEGOTIATING WITH GENERAL ELECTRIC CO'S GE CAPITAL UNIT AND MUTUALFUND GIANT FIDELITY INVESTMENTS MR TISCH IS ARGUING THAT MACY SHOULD VALUE ITSELF AT 38 BILLION IN ITS PLAN A MOVE INTENDED TO DISTRIBUTE GREATER VALUE TO MACY'S PUBLIC BONDHOLDERS THE GEFIDELITY JOINT PLAN VALUES THE COMPANY AT A LOWER 35 BILLION THE BOARD'S INDECISION IS VIEWED AS A BLOW TO MACY'S MR ULLMAN WHO TOOK THE LEAD IN PROPOSING THE PLAN WITH FIDELITY AND GE CAPITAL TO FEND OFF UNWANTED SUITOR FEDERATED DEPARTMENT STORES INC HOWEVER IF MACY'S BOARD COMES UP WITH A PLAN DEEMED DISTASTEFUL BY SECURED CREDITORS WHICH INCLUDE FIDELITY AND GE CAPITAL THOSE CREDITORS MAY BACK FEDERATED UNDER BANKRUPTCY LAW SENIOR CREDITORS CAN BLOCK A REORGANIZATION PLAN DANIEL HARMETZ THE FIDELITY MANAGER WHO HAS BEEN NEGOTIATING WITH MACY HAS ALREADY SAID HE WOULD WITHDRAW HIS SUPPORT SHOULD THE BOARD VALUE MACY ABOVE 35 BILLION MACY SENIOR CREDITORS WHO GET PAID OFF FIRST UNDER BANKRUPTCY LAW ARE OWED 24 BILLION PLUS INTEREST THE LARGEST PIECE OF SENIOR DEBT IS JOINTLY OWNED BY PRUDENTIAL INSURANCE CO OF AMERICA AND FEDERATED 9403220012 940322 BUSINESS BRIEF ECOGEN INC LOSS IN 4TH PERIOD NARROWED TO 3 MILLION REVENUE ROSE ECOGEN INC REPORTED A NARROWER FOURTHQUARTER NET LOSS REFLECTING INCREASED REVENUE AND A LARGE CHARGE IN THE YEAREARLIER QUARTER THE LANGHORNE PA BIOTECHNOLOGY COMPANY SAID ITS NET LOSS WAS 3 MILLION OR 17 CENTS A SHARE DOWN FROM A LOSS OF 93 MILLION OR 54 CENTS A SHARE THE LATEST PERIOD INCLUDED A SPECIAL CHARGE OF 350000 OR TWO CENTS A SHARE FOR TECHNOLOGY PURCHASES THE COMPANY SAID THE 1992 FOURTH QUARTER INCLUDED SPECIAL CHARGES OF 53 MILLION OR 31 CENTS A SHARE REVENUE MORE THAN DOUBLED TO 48 MILLION FROM 21 MILLION THE NET LOSS FOR THE YEAR FELL TO 119 MILLION OR 68 CENTS A SHARE FROM 214 MILLION OR 126 A SHARE REVENUE SOARED TO 197 MILLION FROM 9 MILLION OUR 1993 RESULTS REFLECT A TREND OF PRODUCT REVENUE GROWTH AND PRODUCT MARGIN IMPROVEMENT THAT WE EXPECT WILL CONTINUE THROUGHOUT 1994 ECOGEN SAID IT SAID IT IS COMMITTED TO ACHIEVING OUR GOAL OF AN OPERATING PROFIT BY THE END OF 1994 ON THE NASDAQ STOCK MARKET ECOGEN CLOSED AT 725 UNCHANGED 9403220011 940322 INTERNATIONAL CITIC PACIFIC LTD SEES NET RISE BY 81 AMID TRADE PROBLEMS SPECIAL TO THE WALL STREET JOURNAL HONG KONG CITIC PACIFIC LTD A CHINACONTROLLED HONG KONGLISTED INVESTMENT CONGLOMERATE SAID ITS NET INCOME DURING 1993 SURGED 81 TO 189 BILLION HONG KONG DOLLARS US2445 MILLION DESPITE DIFFICULTY IN SOME OF ITS AIRCRAFT AND TRADING BUSINESSES DURING 1993 CITIC PACIFIC CHAIRMAN LARRY YUNG SAID THE GROUP HAD ANOTHER FRUITFUL YEAR MOTOR CAR TRADING UNDER THE DAH CHONG HONG GROUP MANAGED HIGH BUT REDUCED SALES AND MARKET SHARE IN HONG KONG WHICH WAS MARKED BY SIGNIFICANT COMPETITION DESPITE CHINESE GOVERNMENT ATTEMPTS TO CONTROL CREDIT AND INFLATION IN MOVES SINGLING OUT LUXURY GOODS SUCH AS CARS CITIC'S DAH CHONG HONG SAID IT RECORDED SATISFACTORY SALES GROWTH ON THE MAINLAND THE COMPANY SAID OTHER PARTS OF ITS DAH CHONG HONG TRADING BUSINESS INCLUDING DCH FOOD MARTS DEVELOPED WELL IN 1993 HONG KONG DRAGON AIRWAYS LTD HAD A MILESTONE YEAR IN 1993 WITH RECORD PROFIT AND THE INTRODUCTION OF NEW AIRBUS PLANES CITIC PACIFIC SAID BUT AS REPORTED CATHAY PACIFIC AIRWAYS LTD HAD A DIFFICULT YEAR IN 1993 WITH EARNINGS REDUCED DUE TO A STRIKE BY CABIN CREW MEMBERS PERSISTENT INFLATION AND WEAKNESS IN ITS MAJOR MARKETS CITIC PACIFIC SAID ITS 10OWNED HONG KONG AIR CARGO TERMINALS LTD CONTINUED TO PERFORM WELL WITH A STRATEGIC ROLE FORESEEN FOR THE COMPANY AT HONG KONG'S NEW AIRPORT ON THE BACK OF ITS SUCCESSFUL BID ALONG WITH MANY OTHER COMPANIES LAST YEAR IN A TUNNEL PROJECT RELATED TO THE NEW AIRPORT CITIC PACIFIC SAID IT WILL BID TO OPERATE A ROADWAY LINKING THE TUNNEL WITH MAINLAND CHINA 9403220010 940322 WHAT'S NEWS WORLDWIDE A NUCLEAR AGENCY GAVE NORTH KOREA ANOTHER CHANCE TO ALLOW INSPECTIONS THE INTERNATIONAL ATOMIC ENERGY AGENCY VOTED TO URGE PYONGYANG TO ALLOW ITS INSPECTORS FULL ACCESS TO SUSPECTED WEAPONS SITES AND LAYING THE GROUNDWORK FOR EVENTUAL UN ACTION SENT A COPY OF ITS RESOLUTION TO THE SECURITY COUNCIL CHINA ABSTAINED IN THE VOTE THE US HAS SAID THAT IF THE STANDOFF CONTINUES IT WILL MOVE FOR A SECURITY COUNCIL RESOLUTION ECHOING THE NUCLEAR AGENCY'S THAT ACTION PROBABLY WILL COME NEXT WEEK PRESIDENT CLINTON SAID THE US IN WHAT HE TERMED A PURELY DEFENSIVE MOVE SOON WILL BE SENDING PATRIOT ANTIMISSILE BATTERIES TO SOUTH KOREA UN PEACEKEEPERS IN BOSNIA ORDERED SERB FORCES TO WITHDRAW A GROUP OF TANKS AND ARTILLERY PIECES FROM A 13MILE EXCLUSION ZONE AROUND SARAJEVO RESULTING IN A TENSE STANDOFF AFTER THE SERBS WHO SAY THE WEAPONS ARE OUTSIDE THE ZONE REFUSED TALKS TO RESOLVE THE DISPUTE CONTINUED BUT NATO WARNED THE ARMS ARE SUBJECT TO AIR STRIKES GONZALEZ POSTPONED A HEARING BY HIS HOUSE BANKING COMMITTEE THAT REPUBLICANS HOPED TO USE THIS WEEK TO INVESTIGATE THE WHITEWATER AFFAIR HE CALLED INSTEAD FOR FULL HEARINGS PERHAPS BY A SELECT PANEL MEANWHILE AN INDICTED ARKANSAS EXJUDGE AGREED TO COOPERATE WITH THE WHITEWATER SPECIAL COUNSEL WHITE HOUSE AIDE KENNEDY FAILED TO PAY ABOUT 1300 IN TAXES FOR A NANNY BEFORE HE BECAME ASSOCIATE COUNSEL THEY WERE PAID IN EARLY 1993 IN HIS WIFE'S PREVIOUS MARRIED NAME THE WHITE HOUSE SAID KENNEDY HAD DISCLOSED THE PROBLEM TO VINCENT FOSTER THE LATE CLINTON AIDE EL SALVADOR'S RULING PARTY CANDIDATE HAD A SOLID LEAD IN PRESIDENTIAL BALLOTING BUT APPEARED ALMOST CERTAIN TO FALL SHORT OF THE MAJORITY NEEDED TO AVOID A RUNOFF NEXT MONTH WITH THE LEADER OF A LEFTIST COALITION THE ELECTIONS WHICH ALSO INCLUDED VOTING FOR THE NATIONAL ASSEMBLY WERE THE FIRST SINCE THE END OF THE COUNTRY'S 12YEAR CIVIL WAR MANDELA AND DE KLERK MET WITH ELECTION OFFICIALS TO DISCUSS MOUNTING VIOLENCE IN THE ZULU HOMELAND AS THE FIRST ALLRACE SOUTH AFRICAN ELECTIONS APPROACH MANDELA LATER CRITICIZED DE KLERK AND HIS GOVERNMENT FOR FAILING TO ACCEPT RESPONSIBILITY FOR ARMING THE ZULUDOMINATED INKATHA PARTY IN AN EFFORT TO TERRORIZE RIVAL BLACK GROUPS ISRAELI ARTILLERY POUNDED SOUTHERN LEBANON KILLING A GIRL ABOARD A SCHOOL BUS THE SHELLING WAS IN RETALIATION FOR HEZBOLLAH GUERRILLA ATTACKS THAT KILLED TWO ISRAELI SOLDIERS AND THREE MEMBERS OF AN ALLIED LEBANESE MILITIA IN TUNISIA TALKS AIMED AT REVIVING ISRAELIPALESTINIAN PEACE NEGOTIATIONS RECESSED WITHOUT REACHING AN ACCORD THE US PLEDGED 100 MILLION IN ADDITIONAL AID TO UKRAINE INCLUDING 50 MILLION FOR THE DESTRUCTION OF MISSILE SILOS DURING A VISIT TO THE FORMER SOVIET STATE BY DEFENSE SECRETARY PERRY UKRAINE ALSO ANNOUNCED IT SENT A SECOND TRAINLOAD OF NUCLEAR WARHEADS TO RUSSIA FOR DISMANTLING BRINGING TO 120 THE NUMBER OF WARHEADS SHIPPED SO FAR THE US IS LOSING MILLIONS OF DOLLARS BY SUBSIDIZING VACANT UNITS IN LARGE PUBLIC HOUSING FACILITIES BECAUSE THE BUILDINGS CAN'T LEGALLY BE TORN DOWN A HUD REPORT CONCLUDES THE REPORT SAYS THAT THE GROWING NUMBER OF SUCH VACANT UNITS PROVIDES BREEDING GROUNDS FOR DRUG DEALERS AND OTHER CRIMINAL ELEMENTS PHILADELPHIA REACHED AN AGREEMENT WITH THE JUSTICE DEPARTMENT TO FORCE ITS EMERGENCY MEDICAL WORKERS TO TREAT HIVINFECTED PEOPLE THE ACCORD WHICH SETTLES A DISPUTE IN WHICH A WORKER REFUSED TO TREAT A MAN WHO SAID HE WAS TAKING AN AIDS DRUG IS THE FIRST AIDS SETTLEMENT REACHED UNDER THE 1992 AMERICANS WITH DISABILITIES ACT A GRAND JURY IN OREGON INDICTED THREE MEN WHO ADMITTED CARRYING OUT THE ASSAULT ON OLYMPIC FIGURE SKATER NANCY KERRIGAN AND SAID RIVAL SKATER TONYA HARDING AND HER FORMER HUSBAND HELPED PLAN THE ATTACK HARDING AND EXHUSBAND JEFF GILLOOLY HAVE ALREADY PLEADED GUILTY TO LESSER CHARGES AND SO WEREN'T CHARGED IN THE INDICTMENT CAMBODIAN SOLDIERS SEIZED LARGE CACHES OF WEAPONS AND FOOD WHEN THEY OVERRAN THE HEADQUARTERS OF THE KHMER ROUGE SUNDAY FOLLOWING A TWODAY OFFENSIVE INVOLVING 5000 TROOPS A CAMBODIAN GENERAL SAID THE OPERATION SENT 20000 PEOPLE MANY OF THEM SUPPORTERS OF THE REBELS FLEEING ACROSS THE BORDER TO THAILAND OFFICIALS THERE SAID 9403220009 940322 NOVELL TO BUY WORDPERFECT LINES OF BORLAND STOCK CASH PURCHASES TOTAL 15 BILLION IN EFFORT TO COMBAT MICROSOFT BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL NOVELL INC MOVING AGGRESSIVELY TO COUNTER THE DOMINANCE OF MICROSOFT CORP AGREED TO PURCHASE WORDPERFECT CORP FOR 14 BILLION IN STOCK AND BORLAND INTERNATIONAL INC'S SPREADSHEET BUSINESS FOR 145 MILLION THE TRANSACTIONS SHOULD HELP NOVELL THE LONGTIME LEADER IN SOFTWARE FOR NETWORKING PERSONAL COMPUTERS REALIZE ITS DESIRE TO OWN A BIGENOUGH LINEUP OF PRODUCTS TO COMPETE VIRTUALLY ON ALL FRONTS WITH MICROSOFT WHICH HAS COME TO DOMINATE THE SOFTWARE INDUSTRY IN RECENT YEARS IT ALSO SIGNALS THE END OF AN ERA WHEN SMALL COMPANIES COULD COMPETE FOR THE MOST LUCRATIVE SOFTWARE MARKETS AS WAS THE CASE DURING THE 1980S FOR WORDPERFECT NOVELL IS PAYING 59 MILLION OF ITS SHARES WHICH CLOSED AT 2375 DOWN 25 CENTS OR 1 IN NASDAQ STOCK MARKET TRADING YESTERDAY THIS CREATES A SOFTWARE POWERHOUSE SAID PHILIPPE KAHN CHIEF EXECUTIVE OFFICER AT BORLAND NOVELL NOW PROVIDES A STRONG ALTERNATIVE TO MICROSOFT FOR CORPORATE AMERICA SAID CHUCK STEGMAN AN ANALYST AT DATAQUEST INC A RESEARCH FIRM THE PLANNED ACQUISITIONS BY NOVELL BASED IN PROVO UTAH CREATE A SOFTWARE BEHEMOTH THAT WHILE STILL ONLY HALF THE SIZE OF MICROSOFT IN TERMS OF REVENUE SPANS AN IMPRESSIVE RANGE OF KEY BUSINESSES WORDPERFECT HAS BEEN THE TRADITIONAL LEADER IN WORDPROCESSING PROGRAMS A FEISTY COMPETITOR IN ELECTRONICMAIL SYSTEMS AND A BUDDING RIVAL IN ELECTRONIC PUBLISHING BORLAND'S QUATTRO PRO SPREADSHEET WHICH IS POPULAR WITH FINANCIAL ANALYSTS HOLDS A DISTANT THIRD PLACE IN ITS MARKET BEHIND LOTUS DEVELOPMENT CORP AND MICROSOFT BUT THE DEALS ALSO CONSTITUTE SOMETHING OF A RESCUE OF WORDPERFECT AND BORLAND FROM SUCCESSFUL ATTACKS ON THEIR PRODUCT LINES BY MICROSOFT WORDPERFECT HAS LOST MUCH OF ITS MARKET SHARE TO MICROSOFT'S WORD PROGRAM AND BORLAND'S CASH FLOW HAS BEEN SEVERELY HURT BY PRICE WARS WITH MICROSOFT'S SUITE OF COMMON APPLICATIONS CALLED MICROSOFT OFFICE BORLAND SAID YESTERDAY THAT IT WILL REPORT A DECLINE IN REVENUE AND A SIGNIFICANT LOSS FOR THE CURRENT QUARTER BUT MR KAHN ALSO SAID YESTERDAY NO ONE CAN SAY BORLAND HAS CASH PROBLEMS ANY MORE BORLAND STOCK JUMPED 1375 OR 108 TO 14125 IN NASDAQ TRADING YESTERDAY NOVELL FACES A BIG JOB MESHING THE DISPARATE ELEMENTS OF ITS ACQUISITION BUT NOVELL IS AIDED BY THE FACT THAT WORDPERFECT IS BASED A FEW MILES AWAY IN OREM UTAH AND THAT THE COMPANY EARNS ENOUGH PROFIT AN ESTIMATED 60 MILLION IN 1993 NOT TO DILUTE NOVELL'S EARNINGS PER SHARE WE THINK THIS IS A NATURAL MERGER SAID RAYMOND NOORDA NOVELL'S CHIEF EXECUTIVE OFFICER MICROSOFT EXECUTIVES HOWEVER SCOFFED AT THE COMBINATION INSISTING THAT PRODUCTS PEDDLED BY WORDPERFECT AND BORLAND'S SPREADSHEET AREN'T LIKELY TO FARE ANY BETTER UNDER NOVELL'S STEWARDSHIP THE DEALS ARE A VALIDATION OF OUR SUITE STRATEGY SAID PETER HIGGINS WHO RUNS MICROSOFT'S APPLICATIONS BUSINESS MR HIGGINS CLAIMED THE ENLARGED NOVELL STILL DOESN'T OWN A COMPELLING SUITE OF APPLICATIONS BY PACKAGING APPLICATIONS IN SUITES MICROSOFT EFFECTIVELY DROVE DOWN THE PRICE OF SOFTWARE WITH A HELPING HAND FROM BORLAND WHICH IN RECENT YEARS HAS SOLD ITS QUATTRO SPREADSHEET FOR AS LITTLE AS 50 IN ORDER TO WIN A FOLLOWING WITH PRICES PLUMMETING WORDPERFECT BORLAND AND OTHERS HAVE LAID OFF WORKERS IN ORDER TO REDUCE COSTS AND SEEN SHARP DECLINES IN PROFITS OR POSTED LOSSES ONLY THE ECONOMIES OF SCALE THAT COME WITH SIZE SEEM TO ENABLE COMPANIES TO COPE WITH LOWER PRICES WITH MICROSOFT SO MUCH LARGER THAN NOVELL AND INTENT ON WRESTING AWAY NOVELL'S CORE BUSINESS WITH ITS RECENTLY RELEASED WINDOWS NT NETWORKING SOFTWARE WHAT CHOICE DID NOVELL HAVE BUT TO GET BIGGER ASKED RICHARD SHAFFER EDITOR OF THE COMPUTER LETTER IN THIS QUEST NOVELL ACHIEVED A COUP IN OBTAINING WORDPERFECT WHOSE 1993 REVENUE OF NEARLY 700 MILLION MADE IT THE FOURTHLARGEST PC SOFTWARE SUPPLIER A CLOSELY HELD COMPANY WORDPERFECT HAD LOOKED LONG AND HARD OVER THE PAST TWO YEARS AT AN INITIAL PUBLIC STOCK OFFERING THAT WOULD TURN ITS TWO OWNERS AND COFOUNDER BRUCE BASTIAN AND ALAN ASHTON INTO MEGAMILLIONAIRES THIS IS A GREAT WAY FOR WORDPERFECT TO GO PUBLIC SAID JEFF LEOPOLD A SOFTWARE ANALYST FOR YANKEE GROUP THE SALE TO NOVELL SHOULD MAKE MESSRS BASTIAN AND ASHTON AMONG THE WEALTHIEST MEN IN THE US EACH SHOULD REAP NEARLY 700 MILLION IN NOVELL STOCK ON TOP OF HUNDREDS OF MILLIONS OF DOLLARS GAINED FROM WORDPERFECT'S PAST OPERATIONS THE LOSER IN YESTERDAY'S DEAL MAY HAVE BEEN LOTUS WHICH MR NOORDA SAID MADE AN EFFORT RECENTLY TO PURCHASE NOVELL MR NOORDA SAID HE REBUFFED THE OFFER LOTUS DECLINED TO COMMENT FOUR YEARS AGO THE TWO COMPANIES ANNOUNCED A MERGER BUT THEN CALLED IT OFF ONE UNCERTAINTY ABOUT THE DEAL INVOLVES WHO WILL LEAD NOVELL SINCE MR NOORDA 69 YEARS OLD IS PAST THE NORMAL RETIREMENT AGE AND HAS ACKNOWLEDGED THAT A SEARCH IS UNDER WAY FOR HIS SUCCESSOR THEY BETTER FIND A GREAT CEO SAID TERRY GARNETT A SENIOR VICE PRESIDENT AT ORACLE CORP A LARGE DATABASESOFTWARE COMPANY ADRIAN RIETVELD WORDPERFECT'S CHIEF EXECUTIVE IS ONE POSSIBLE SUCCESSOR TO MR NOORDA ALTHOUGH MR RIETVELD HAS ONLY BEEN IN HIS POSITION A FEW MONTHS ANY ONE OF A FEW SENIOR EXECUTIVES AT NOVELL COULD ALSO CLAIM THE TOP SPOT TOO MR NOORDA SAID THAT HE INTENDS TO REMAIN AS CHAIRMAN OF NOVELL AND THAT WE'RE HOPEFUL THAT THERE WILL BE A NEW CEO BY MIDJUNE SHOULD NOVELL'S DEALS BE COMPLETED COMPLAINTS ABOUT MICROSOFT'S DOMINATION OVER THE SOFTWARE INDUSTRY COMPLAINTS THAT HAVE SPAWNED A SUCCESSION OF FEDERAL INVESTIGATIONS MAY ABATE MR KAHN OF BORLAND SAID FOR THE LAST TWO TO THREE YEARS PEOPLE LOST FAITH THAT THEY COULD COMPETE WITH MICROSOFT NOW THERE IS A BETTER CHOICE THE SALE OF BORLAND'S SPREADSHEET OPERATIONS WOULD LEAVE THE COMPANY WITH A SUBSTANTIAL BUSINESS IN DATABASE SOFTWARE AND A THRIVING SOFTWARETOOLS BUSINESS HOWEVER THE SALE OF THE COMPANY'S SPREADSHEET BUSINESS LEAVES UNRESOLVED A PENDING DAMAGE CLAIM AGAINST THE COMPANY PERHAPS FOR AS MUCH AS 100 MILLION BROUGHT BY LOTUS WHICH ALLEGES THAT BORLAND'S SPREADSHEET INFRINGES ON THE COPYRIGHTS FOR LOTUS'S SPREADSHEET IN BUYING BORLAND'S SPREADSHEET BUSINESS MR NOORDA ACKNOWLEDGED THAT HE WAS PARTLY MOTIVATED BY A DESIRE TO HELP KEEP BORLAND WHICH COMPETES DIRECTLY WITH MICROSOFT IN ITS BUSINESSES AFLOAT BESIDES BOLSTERING THE FORCES ARRAYED AGAINST MICROSOFT THE WORLD'S BIGGEST SOFTWARE SUPPLIER THE DEAL REFLECTS A TREND TOWARD CONSOLIDATION WITHIN THE SOFTWARE INDUSTRY AS INDIVIDUAL COMPANIES STRUGGLE WITH LARGE MARKETING AND DEVELOPMENT EXPENSES AND AS PROFIT MARGINS WILT IN THE FACE OF SPORADIC PRICE WARS 9403220008 940322 TECHNOLOGY CLIPPER CHIP IS YOUR FRIEND NSA CONTENDS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL FORT MEADE MD THE NATIONAL SECURITY AGENCY WANTS EVERYONE TO KNOW THAT ITS NEW COMPUTERSECURITY SYSTEM WILL PROTECT INDIVIDUAL PRIVACY BUT AS THE SPY AGENCY KNOWS HARDLY ANYONE BELIEVES THAT CRITICS FEAR THE GOVERNMENT WILL USE THE NSA TECHNOLOGY DESIGNED IN SECRET TO SPY ON AMERICANS THE PROJECT IS A FOCAL POINT FOR THE DISTRUST OF GOVERNMENT ACKNOWLEDGES CLINTON BROOKS THE NSA SCIENTIST WHO LED THE SOCALLED CLIPPER CHIP PROJECT IN THE AGENCY'S FIRST INTERVIEW ON THE SUBJECT THE CLINTON ADMINISTRATION LAST MONTH ADOPTED THE NSA PLAN FOR A SERIES OF COMPUTER CHIPS THAT WOULD PROTECT TELEPHONES AND COMPUTERS USE OF THE TECHNOLOGY WOULD BE VOLUNTARY FEDERAL AGENCIES WOULD ADOPT IT FIRST AND PUBLIC USE IS EXPECTED TO SPREAD GRADUALLY UNDER THE PLAN CRYPTOGRAPHIC KEYS THAT COULD UNSCRAMBLE THE COMMUNICATIONS WOULD BE SPLIT IN TWO AND HELD SEPARATELY AT THE TREASURY DEPARTMENT AND THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY THAT WAY LAWENFORCEMENT AGENTS COULD TAP THE COMMUNICATIONS BY GETTING COURT AUTHORIZATION TO OBTAIN THE TWO HALVES THE IDEA IS TO BOOST SECURITY BUT TO KEEP THE TECHNOLOGY OUT OF THE HANDS OF CRIMINALS AND SPIES THE NSA IS THE WORLD'S BIGGEST EAVESDROPPER EQUIPPED WITH THE LATEST IN SUPERCOMPUTERS AND SATELLITE RECEIVERS IT TARGETS COMMUNICATIONS BY FOREIGN GOVERNMENTS THE AGENCY SHUNS PUBLICITY BUT AGREED TO THE INTERVIEW TO EXPLAIN ITS ROLE IN THE CLIPPER CONTROVERSY AND TRY TO DISPEL FEARS MR BROOKS A 26YEAR VETERAN OF THE NSA SAYS THE PROJECT BEGAN IN 1989 AND COST MORE THAN 25 MILLION HE SAYS THE NSA IS CONSUMED WITH WHAT IT CALLS THE EQUITIES PROBLEM HOW TO BALANCE PRIVACY RIGHTS AGAINST THE NEEDS OF LAW ENFORCEMENT NATIONAL SECURITY AND PRIVATE INDUSTRY IN 1989 HE AND RAYMOND KAMMER DEPUTY DIRECTOR OF NIST BEGAN DISCUSSIONS ABOUT HOW TO IMPROVE COMPUTER SECURITY WITHOUT MAKING IT IMPENETRABLE TO POLICE NIST IS A COMMERCE DEPARTMENT AGENCY WITH FORMAL RESPONSIBILITY FOR UNCLASSIFIED COMPUTER SECURITY BEFORE THE INTERVIEW MR BROOKS TAKES A LOOK AROUND A SMALL CRYPTOGRAPHIC MUSEUM JUST OUTSIDE THE NSA'S GATES HE STANDS BEFORE AN EXHIBIT OF ENIGMA MACHINES USED BY THE GERMANS DURING WORLD WAR II TO ENCRYPT MESSAGES AND LATER BROKEN BY ALLIED INTELLIGENCE ENIGMA STARTED AS A COMMERCIAL PRODUCT RECOGNIZING ITS MILITARY VALUE THE NAZIS PULLED IT OFF THE MARKET THAT WAS THE CONCERN WE'RE WRESTLING WITH TODAY MR BROOKS SAYS COMMERCIAL ENCRYPTION TECHNOLOGY BECOMING SO GOOD THAT US SPY AGENCIES CAN'T CRACK IT IN 1989 NIST AND THE NSA PUT TOGETHER AN EIGHTPERSON TEAM SPLIT EVENLY BETWEEN THE AGENCIES TO QUIETLY WORK OUT SECURITY CONCEPTS THE TEAM DECIDED AGAINST USING A WEAK ENCRYPTION CODE ROMAN NUMERAL ONE IS THAT IT HAD TO BE GOOD SECURITY SAYS MR BROOKS AND IT ALSO REJECTED A SOCALLED TRAPDOOR APPROACH IN WHICH THE COMPUTER CODE WOULD BE DESIGNED SO IT WOULD HAVE A WEAK SPOT A TRAPDOOR THAT FEDERAL AGENCIES COULD ENTER VIA COMPUTER TO TAP THE COMMUNICATIONS SOMEONE ELSE COULD DISCOVER THE TRAPDOOR THEY DECIDED THE TEAM SETTLED ON A SYSTEM WITH A POWERFUL ENCRYPTION FORMULA CALLED AN ALGORITHM AND ENCRYPTION KEYS THAT WOULD BE HELD BY OUTSIDERS LAWENFORCEMENT AGENCIES COULD GET COPIES OF THE KEYS WHEN THEY NEEDED TO BUG THE CONVERSATIONS THE TOUGHEST DECISION BOTH MR BROOKS AND MR KAMMER SAY WAS TO KEEP THE ALGORITHM DUBBED SKIPJACK SECRET THAT MEANT THE PUBLIC WOULDN'T KNOW FOR SURE WHETHER THE NSA HAD INSERTED A TRAPDOOR OR SOME OTHER EAVESDROPPING DEVICE IT WOULD DEFEAT THE PURPOSE OF THE PROJECT IF WE GAVE THE KNOWLEDGE OF HOW THE ALGORITHM WORKED TO THE PUBLIC SAYS THE 56YEAROLD MR BROOKS IT WAS GOING TO HAVE TO BE KEPT CLASSIFIED OTHERWISE HE EXPLAINS ENGINEERS COULD USE THE ALGORITHM TO DESIGN COMPUTERSECURITY SYSTEMS THAT THE GOVERNMENT'S ENCRYPTION KEYS COULDN'T UNLOCK BY 1990 HE SAYS AS MANY AS 30 NSA CRYPTOMATHEMATICIANS AND OTHER EMPLOYEES WERE WORKING TO PERFECT THE ALGORITHM AND OTHER FEATURES A YEAR LATER THE NSA LAUNCHED WHAT IT CALLED THE CAPSTONE PROJECT TO BUILD THE ALGORITHM INTO A COMPUTER CHIP THE NSA CONTRACTED WITH MYKOTRONX INC A SMALL COMPANY IN TORRANCE CALIF TO DO MUCH OF THE DEVELOPMENT BY SEPTEMBER 1992 THE NSA WAS CONFIDENT THE SYSTEM WOULD WORK NONE TOO EARLY FOR THE NSA EARLIER THAT YEAR MR BROOKS SAYS AMERICAN TELEPHONE & TELEGRAPH CO INFORMED THE NSA THAT IT WANTED TO SELL A PHONE USING A POPULAR ENCRYPTION TECHNOLOGY TO SCRAMBLE CONVERSATIONS THE NSA BALKED WE SAID IT PROBABLY WOULDN'T GET AN EXPORT LICENSE FROM THIS COUNTRY MR BROOKS SAYS INSTEAD AT&T WAS TOLD OF THE CAPSTONE WORK AND AGREED TO USE THE TECHNOLOGY IF IT BECAME A FEDERAL STANDARD AND WAS EXPORTABLE HE SAYS THE NSA THEN TOOK SOME OF THE FUNCTIONS OF THE CAPSTONE CHIP AND TAILORED IT TO PHONE EQUIPMENT CALLING THE RESULTING PRODUCT THE CLIPPER CHIP FOR COMPUTERS CAPSTONE WAS ENCASED ON A COMPUTER CARD THAT BECAME KNOWN AS TESSERA BUT THE BUSH ADMINISTRATION ENMESHED IN A REELECTION BID NEVER PUSHED CAPSTONE SO SHORTLY AFTER THE ELECTION NATIONALSECURITY HEAVYWEIGHTS IMPORTUNED THE CLINTON TRANSITION TEAM TO MOVE QUICKLY ON CAPSTONE JUST WEEKS AFTER THE INAUGURATION THE NEW ADMINISTRATION'S NATIONALSECURITY TEAM WAS DEBATING THE NSA PROPOSAL AND IN APRIL ANNOUNCED TO THE PUBLIC THAT IT WOULD ADOPT THE SCHEME LAST MONTH THE ADMINISTRATION GAVE THE FINAL GOAHEAD DESPITE WITHERING CRITICISM FROM INDUSTRY VICE PRESIDENT AL GORE CALLED ENCRYPTION A LAW AND ORDER ISSUE NIST'S MR KAMMER SAYS THE NEW ADMINISTRATION WAS ALSO TRYING TO LINE UP BACKING AMONG NATIONALSECURITY OFFICIALS TO LIBERALIZE EXPORT CONTROLS ON COMPUTER EQUIPMENT AND OTHER HIGHTECH GEAR THE HIGHTECH INDUSTRY WAS STUNNED AT THE DECISION DAVID PEYTON VICE PRESIDENT OF THE INFORMATION TECHNOLOGY ASSOCIATION OF AMERICA A TRADE GROUP OF COMPUTER COMPANIES SAYS THE SCHEME WILL DANGEROUSLY CENTRALIZE POWER IN THE FEDERAL GOVERNMENT AND WILL LIMIT EXPORTS JAMES BIDZOS PRESIDENT OF A COMPUTERSECURITY FIRM RSA DATA SECURITY INC GOES FURTHER HE POSTED A LETTER ON THE INTERNET COMPUTER NETWORK ARGUING THAT CLIPPER MAY BE THE VISIBLE PORTION OF A LARGESCALE COVERT OPERATION ON US SOIL BY NSA NONSENSE RESPONDS MR BROOKS WHO SAYS HE IS DISTRESSED BY THE EMOTIONALISM OF THE ARGUMENTS THE ONLY REASON WE'RE INVOLVED IS THAT WE HAVE THE BEST CRYPTOMATHEMATICIANS IN THE COUNTRY 9403220007 940322 CONSIDERING WHAT THE CLINTONS HAVE PAID 20 SEEMS QUITE CHEAP BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL LITTLE ROCK ARK NOW YOU TOO CAN OWN A PIECE OF WHITEWATER JUST AS THE CLINTONS ONCE DID ONE CUBIC FOOT OF DIRT FROM THE INFAMOUS WHITEWATER DEVELOPMENT CAN BE YOURS FOR JUST 20 ALTHOUGH YOU HAVE TO FETCH IT YOURSELF THE MARKETING SCHEME IS THE BRAINCHILD OF JAMES MCDOUGAL THE FORMER PARTNER OF PRESIDENT AND HILLARY RODHAM CLINTON IN WHITEWATER DEVELOPMENT CORP AND CHRIS WADE WHO WAS THE REALESTATE AGENT FOR THE ILLFATED PLAN TO SELL VACATION HOMES IN THE OZARKS WE'RE GONNA TAKE THE LAST LOT CUT IT INTO A ZILLION LITTLE PIECES AND LET EVERYBODY OWN A LITTLE BIT OF WHITEWATER SAYS MR WADE EACH NEW WHITEWATER INVESTOR WILL RECEIVE A PARCHMENTLIKE CERTIFICATE SIGNED BY MR MCDOUGAL HIS FORMER WIFE SUSAN MCDOUGAL AND MR WADE A RECORDING ON MR WADE'S 800 PHONE NUMBER TELLS CALLERS THANK YOU FOR CALLING THE DIRT ON WHITEWATER IT ADDS THAT YES THIS IS THE SAME WHITEWATER THAT THE PRESIDENT AND HIS WIFE HILLARY WERE INVOLVED IN CONTRIBUTIONS AREN'T TAX DEDUCTIBLE BUT ANYONE WHO WANTS TO EXPERIENCE PART OF THE WHITEWATER NIGHTMARE CAN TRAVEL TO THE OZARKS AND DIG YOU UP A CUBIC FOOT OF DIRT AND TAKE IT WITH YOU SAYS MR WADE MR MCDOUGAL COULDN'T BE REACHED FOR COMMENT THE IDEA IS TO RAISE MONEY FOR MR MCDOUGAL'S LEGAL EXPENSES IN THE INVESTIGATION BY SPECIAL COUNSEL ROBERT FISKE IT MAY MAKE SOME MONEY IT MAY NOT MR WADE SAYS IT WILL BE FUN TO DO ANYWAY HE SAYS THE PLAN STARTED OUT AS KIND OF A JOKE IT'S NO JOKE TO LITTLE ROCK ATTORNEY SAM HEUER HE REPRESENTS MR MCDOUGAL WHO HAS BEEN BROKE SINCE HIS MADISON GUARANTY SAVINGS & LOAN WAS TAKEN OVER BY FEDERAL REGULATORS IN 1989 MR HEUER WHO TYPICALLY CHARGES 175 AN HOUR FOR CRIMINAL WORK SAYS HE HASN'T BEEN PAID IN SOME TIME ALTHOUGH HE HAS BEEN SPENDING ABOUT FOUR HOURS A DAY ON WHITEWATER LEGAL WORK SINCE DECEMBER IF DIRT BUYERS WANT TO GIVE US A COUPLE OF HUNDRED THOUSAND BUCKS I THINK THAT WOULD BE OK TOO HE SAYS THE CLINTONS OF COURSE HAVE NO SAY IN ANY OF THIS THEY SOLD THEIR 50 STAKE IN WHITEWATER IN 1992 BUT LEST THEY WORRY ABOUT STILL MORE POLITICAL REPERCUSSIONS FROM THE DIRT DEAL MR WADE OFFERS REASSURANCE THIS HE PROMISES WILL BE NOTHING THAT WILL EMBARRASS ANYBODY 9403220006 940322 ENTERPRISE RISE IN EMPLOYEE LEASING SPURS SCAMS BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL SMALL BUSINESSES ARE INCREASINGLY TURNING TO EMPLOYEELEASING COMPANIES THAT HIRE THE CLIENT'S EMPLOYEES PROVIDE THEM WITH HEALTH INSURANCE AND OTHER BENEFITS AND THEN LEASE THE EMPLOYEES BACK TO THE CLIENT BUT THERE'S A PROBLEM AS MANY AS 500000 SUCH WORKERS MAY NOT HAVE THE HEALTHCARE COVERAGE THEY THINK THEY HAVE THE POTENTIAL CRISIS HAS COME TO LIGHT FOLLOWING A FEDERAL INVESTIGATION INTO THE BUSINESS PRACTICES OF HAZAR INC A SAN FRANCISCO COMPANY THAT CLAIMS TO BE THE NATION'S LARGEST EMPLOYEELEASING CONCERN AND OTHER LEASING COMPANIES LAST MONTH AGENTS FROM THE FEDERAL BUREAU OF INVESTIGATION AND THE US DEPARTMENT OF LABOR RAIDED THE OFFICES OF HAZAR WHICH UNTIL A FEW WEEKS AGO WAS RUN BY A CONVICTED FELON IN A SEARCH WARRANT REQUEST FILED IN FEDERAL COURT IN SAN FRANCISCO THE FBI ALLEGES THAT HAZAR ENGAGED IN CRIMINAL FRAUD AND MONEY LAUNDERING AS IT EMBEZZLED LARGE SUMS FROM THE BENEFIT PLANS OF AT LEAST 6000 WORKERS THE COMPANY DENIES THE ALLEGATIONS AND SAYS IT IS COOPERATING FULLY WITH INVESTIGATORS HAZAR'S PRESIDENT BERT DANZIG SAYS THE COMPANY HAS HIRED AN OUTSIDE AUDITOR TO EXAMINE ITS BOOKS HE ATTRIBUTES ANY PROBLEMS TO BAD BUSINESS DECISIONS MADE BY HAZAR'S FORMER CONTROLLING SHAREHOLDER ROBERT SKIP ANDERSON MR ANDERSON AND HIS ATTORNEYS DIDN'T RETURN REPEATED PHONE CALLS DESPITE THE POTENTIAL FOR PROBLEMS MANY LEASING CONCERNS DELIVER A MUCHNEEDED SERVICE THERE ARE MANY LEGITIMATE EMPLOYEELEASING COMPANIES AND THERE ARE GOOD REASONS SMALL EMPLOYERS USE THEM SAYS CHARLES LERNER DIRECTOR OF ENFORCEMENT FOR THE LABOR DEPARTMENT'S PENSION AND WELFARE BENEFITS ADMINISTRATION THE PROBLEM IS THAT THERE'S A GROWING NUMBER OF SCAMS BECAUSE OF THE CRISIS IN HEALTH CARE PROVISION FACING SMALL BUSINESSES SMALL BUSINESSES PINCHED BY HEALTH CARE AND WORKER'S COMPENSATION DEMANDS HAVE BECOME EASY PREY FOR LEASING CONCERNS THAT SELL EMPLOYEES BOGUS INSURANCE ACCORDING TO MR LERNER AND OTHER LAW ENFORCEMENT OFFICIALS EMPLOYEELEASING STARTED TO CATCH ON IN THE MID1980S WHEN THE COST OF HEALTH AND WORKERS' COMPENSATION INSURANCE SKYROCKETED BY POOLING A LARGE NUMBER OF EMPLOYEES FROM MANY SMALL COMPANIES EMPLOYEELEASING CONCERNS HAVE THE LEVERAGE TO GET DISCOUNTS ACCORDING TO THE NATIONAL ASSOCIATION OF PROFESSIONAL EMPLOYER ORGANIZATIONS A TRADE GROUP BASED IN ARLINGTON VA THERE WERE 2178 EMPLOYEELEASING CONCERNS MANAGING HEALTH INSURANCE AND OTHER BENEFITS FOR 16 MILLION WORKERS LAST YEAR COMPARED WITH 98 SUCH COMPANIES MANAGING ABOUT 10000 WORKERS IN 1984 HAZAR WAS FOUNDED TWO YEARS AGO BY MR ANDERSON AND OTHERS TO CAPITALIZE ON THIS DEMAND BEFORE FOUNDING HAZAR MR ANDERSON HAD ALREADY TESTED THE WATERS BETWEEN 1989 AND 1990 HE RAN UMC INC A LEASING BUSINESS BASED IN HUNTINGTON BEACH CALIF AND FROM 1990 TO 1991 HE WAS AN EXECUTIVE WITH AMERICAN WORKFORCE INC AN ADDISON TEXAS LEASING COMPANY THAT COLLAPSED IN 1991 IN A CRIMINAL CASE FILED LAST YEAR IN FEDERAL COURT IN DALLAS THE TEXAS ATTORNEY GENERAL'S OFFICE ALLEGED THAT MR ANDERSON AND OTHERS ASSOCIATED WITH AMERICAN WORKFORCE PARTICIPATED IN DEFRAUDING 5000 WORKERS OF 27 MILLION IN HEALTH AND RETIREMENT BENEFITS THE SUIT WHICH SEEKS 250 MILLION IN DAMAGES IS PENDING MR ANDERSON'S PRACTICES AT UMC INC WHICH THE US ATTORNEY'S OFFICE DESCRIBES AS AN INACTIVE BUSINESS RESULTED IN A CRIMINAL INDICTMENT FOR MAIL FRAUD LAST DECEMBER IN FEDERAL COURT IN LOS ANGELES ACCORDING TO CHARGES FILED THERE BY THE US ATTORNEY'S OFFICE MR ANDERSON TRIED TO GET LOWER RATES FROM AN INSURANCE CARRIER BY LYING ABOUT THE SIZE AND SAFETY RECORD OF UMC'S WORK FORCE THAT CASE IS ALSO PENDING CALIFORNIA'S EMPLOYMENT DEVELOPMENT DEPARTMENT HAS ALSO FILED FIVE LIENS AGAINST UMC FOR 324000 IN UNPAID EMPLOYMENT TAXES NONE OF THESE INSTANCES ARE MR ANDERSON'S FIRST BRUSH WITH THE LAW HE PLEADED GUILTY TO BANKRUPTCY FRAUD CHARGES IN FEDERAL COURT IN SAN FRANCISCO AND WAS SENTENCED TO TWO YEARS IN PRISON AND FIVE YEARS' PROBATION IN 1989 HE SERVED ONLY SIX MONTHS OF THE SENTENCE WHICH RAN CONCURRENTLY WITH A STATE SENTENCE FOR GRAND THEFT THE MISHAPS DIDN'T PREVENT MR ANDERSON FROM BUILDING UP HAZAR QUICKLY UNTIL LATE LAST MONTH THE COMPANY WAS OWNED BY AIRLITE INC A HUNTINGTON BEACH CALIF COMPANY CONTROLLED BY MR ANDERSON AND HIS ATTORNEY DONALD JORGENSEN MR JORGENSEN DECLINES TO COMMENT BY THE TIME INVESTIGATORS RAIDED HAZAR'S OFFICES LAST MONTH THE COMPANY HAD 24 SUBSIDIARIES REPRESENTING 30000 EMPLOYEES FROM 1700 COMPANIES NATIONWIDE HAZAR'S MR DANZIG SAYS THE OPERATION HAD REVENUE OF 350 MILLION LAST YEAR ACCORDING TO THE FBI'S SEARCH WARRANT HOWEVER HAZAR'S OFFICERS EMPLOYEES AND SUBSIDIARIES AND OTHERS AS YET UNKNOWN UNLAWFULLY DIVERTED MONEYS FROM CLIENT FUNDS AND INSURANCE PREMIUMS OVER WHICH HAZAR HAD CONTROL THE SEARCH WARRANT DOESN'T SPECIFY HOW MUCH MONEY WAS ALLEGEDLY STOLEN BUT MR DANZIG SAYS INVESTIGATORS CLAIM IT IS MILLIONS MR DANZIG INSISTS THAT HAZAR'S ALLEGED PROBLEMS ARE NOTHING MORE THAN EXPENSEACCOUNT ABUSES AND REFLECTIONS OF AN OVERLY AMBITIOUS ACQUISITION SPREE BY MR ANDERSON WHO DIDN'T HAVE AN OFFICIAL TITLE AT THE COMPANY MR ANDERSON HIRED MR DANZIG AS HAZAR'S PRESIDENT A YEAR AGO MR DANZIG SAYS HE AND OTHER COMPANY EXECUTIVES WEREN'T AWARE OF MR ANDERSON'S PAST UNTIL LATE LAST SUMMER HE SAYS THEY BECAME EAGER TO BUY MR ANDERSON OUT PARTICULARLY AFTER US POSTAL INSPECTION SERVICE AGENTS LED HIM OUT OF HAZAR'S OFFICES IN HANDCUFFS LAST DECEMBER BUT WERE UNABLE TO PERSUADE HIM TO LEAVE MR DANZIG SAYS LAST MONTH'S RAID FINALLY PERSUADED MR ANDERSON TO GO AT THE END OF FEBRUARY HE SOLD HIS 70 STAKE IN HAZAR TO MR DANZIG AND OTHERS FOR WHAT MR DANZIG DESCRIBES AS LESS THAN 75 MILLION MR DANZIG SAYS HE NOW OWNS ABOUT 80 OF HAZAR'S STOCK AND THAT RUMORS HAZAR MAY COLLAPSE ARE UNFOUNDED HAZAR'S ALLEGED IMPROPRIETIES MAY BE JUST THE START OPERATION GOODHANDS A FEDERAL INVESTIGATION OF INSURANCE FRAUD BEGUN A YEAR AND A HALF AGO HAS IDENTIFIED AT LEAST 30 COMPANIES PRIMARILY IN THE EMPLOYEELEASING BUSINESS THAT MAY HAVE BEEN OPERATING ILLEGALLY THERE MAY BE AS MANY AS HALF A MILLION PEOPLE WHO DON'T HAVE THE HEALTH INSURANCE THEY BELIEVE THEY HAVE SAYS DANIEL WOZNIAK A SUPERVISORY INVESTIGATOR WITH THE FBI THE POSSIBILITY THAT SO MANY WORKERS MAY BE UNABLE TO GET THE MEDICAL ATTENTION THEY NEED IS CAUSING EMPLOYEELEASING OPERATORS TO CALL FOR BETTER SUPERVISION WE HAVE A LOT OF BAD ACTORS OUT THERE IN THIS INDUSTRY SAYS TIMOTHY DILLON PRESIDENT OF NATIONS PERSONNEL INC A DALLASBASED LEASING CONCERN WE HAVE SUCH A GOOD SERVICE TO OFFER THE BUSINESSMAN THAT I WOULD RATHER BE REGULATED AND HAVE A MICROSCOPE ON OUR BUSINESS THAN FORGO PROVIDING THE SERVICE 9403220005 940322 FOREIGN EXCHANGE DOLLAR DROPS AGAINST MOST CURRENCIES AFTER TWO EFFORTS TO RALLY FAIL TO HOLD BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SLID AGAINST MOST CURRENCIES YESTERDAY AFTER TWO RALLIES FAILED TO STICK ON SPECULATION ABOUT ANOTHER US RATE INCREASE AND ON ESCALATING TENSIONS IN KOREA A SHORTLIVED RALLY AROUND MIDDAY IN NEW YORK WAS PROMPTED BY PRESIDENT CLINTON'S ANNOUNCEMENT THAT HE WILL SEND PATRIOT MISSILES TO SOUTH KOREA IN RESPONSE TO NORTH KOREA'S FAILURE TO AGREE TO INTERNATIONAL INSPECTION OF ITS NUCLEAR PLANTS MR CLINTON PLAYED DOWN THE MOVE AS PURELY DEFENSIVE BUT THE MARKET NEVERTHELESS TOOK FLIGHT TOWARD THE DOLLAR AS A SAFEHAVEN CURRENCY ON THE INITIAL REPORT THE US CURRENCY THEN MET A WAVE OF SELL ORDERS AND DROPPED BACK TO ITS EARLIER LEVELS A SIMILAR RETREAT OCCURRED EVEN EARLIER AFTER THE DOLLAR ROSE TO INTRADAY HIGHS ON SPECULATION THAT SHORTTERM INTEREST RATES WERE ALMOST CERTAIN TO RISE AFTER TODAY'S MEETING OF THE FEDERAL OPEN MARKETS COMMITTEE OR FOMC TRADERS NOTED THAT THE DOLLAR REMAINS DEPRESSED BY A STRONG TECHNICAL DOWNDRAFT IN WHICH ALMOST ANY RALLY APPEARS TO BE UNDERMINED BY A MORE SEVERE SELLOFF LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16885 MARKS DOWN FROM 16965 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 106 YEN OFF FROM 10610 YEN STERLING WAS TRADING AT 14895 DOWN FROM 14915 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10609 YEN WITH JAPAN SEEN AS VULNERABLE TO ANY MILITARY ACTION OVER KOREA INCLUDING ATTACK BY NORTH KOREAN MISSILES THE NEWS OF THE US DEPLOYMENT OF PATRIOT AIRDEFENSE MISSILES INITIALLY BOOSTED THE DOLLAR AGAINST THE JAPANESE CURRENCY THE DOLLAR RETURNED TO ITS INTRADAY HIGH OF 10645 YEN WHICH ALSO WAS REACHED EARLIER ON THE INTERESTRATE SPECULATION AS THE DOLLAR ROSE AGAINST THE YEN ON THE SURGING TENSIONS IN KOREA IT WAS ALSO CARRIED HIGHER AGAINST THE MARK BUT HERE TOO THE DOLLAR FAILED TO PUNCH THROUGH IMPORTANT TECHNICAL RESISTANCE AT 17020 MARKS AND FELL IN A BRIEF BUT FRENZIED SELLOFF THE PATRIOT STORY WAS IMPORTANT BUT MORE IMPORTANT TO THE MARKET WAS THAT THE DOLLAR AGAIN FAILED TO TAKE OUT 17020 MARKS SAID CARL AMENDOLA VICE PRESIDENT OF BAYERISCHE HYPOTHEKENUND WECHSELBANK AG IN NEW YORK EVERYONE SUDDENLY REALIZED THAT KOREA WASN'T THAT BIG A DEAL HE ADDED NOTING THE DOLLAR HIT STOPLOSS ORDERS ON THE WAY DOWN MR AMENDOLA SAID THE FAILURE OF THE DOLLAR'S BID TO RALLY ON THE KOREAN TENSIONS ECHOED A SIMILAR LACK OF DOLLAR STRENGTH IN OTHER RECENT CRISES SUCH AS EVENTS IN YUGOSLAVIA AND THE FORMER SOVIET UNION THE MARKET HAS BECOME NUMB TO THESE LITTLE SKIRMISHES THROUGHOUT THE WORLD MR AMENDOLA SAID ADDING IN THE GREATER SCHEME OF THINGS KOREA ISN'T SO IMPORTANT JUST YET OTHER FACTORS ALSO HELPED TO CONTRIBUTE TO THE DOLLAR'S WEAKNESS SAID THOMAS BENFER DIRECTOR OF FOREIGN EXCHANGE AT THE BANK OF MONTREAL HE NOTED THAT RETREATS IN THE US STOCK AND BOND MARKETS ALSO HELPED DRAG DOWN THE DOLLAR AS INVESTORS APPEARED TO MAKE ANOTHER FLIGHT FROM US FINANCIAL MARKETS THE DOW JONES INDUSTRIAL AVERAGE DROPPED 3080 POINTS YESTERDAY AND THE BOND MARKET ENDED LOWER AFTER MAKING ONLY A MINOR RECOVERY FROM AN EARLIER SELLOFF MR BENFER ADDED THAT THE MARKET REMAINS SKITTISH OVER THE MEETING LAST FRIDAY BETWEEN MR CLINTON AND ALAN GREENSPAN CHAIRMAN OF THE FEDERAL RESERVE BOARD THAT PARLEY WAS WIDELY PERCEIVED AS THE ADMINISTRATION LOBBYING AGAINST AN INCREASE IN INTEREST RATES WHEN THE FOMC MEETS TODAY THE WHITE HOUSE HAS DENIED THAT INTEREST RATES WERE ON THE AGENDA AT FRIDAY'S MEETING BUT FINANCIAL MARKETS REMAIN SKEPTICAL 9403220004 940322 BUSINESS BRIEF WAXMAN INDUSTRIES INC FIRM EXTENDS PURCHASE OFFER FOR ITS SUBORDINATED NOTES WAXMAN INDUSTRIES INC SAID IT EXTENDED UNTIL FRIDAY ITS OFFER TO PURCHASE ALL BUT NOT LESS THAN 66 MILLION OF THE 988 MILLION AGGREGATE PRINCIPAL AMOUNT OF THE COMPANY'S 1375 SENIOR SUBORDINATED NOTES DUE JUNE 1 1999 WAXMAN BEDFORD HEIGHTS OHIO SUPPLIES PLUMBING ELECTRICAL AND HARDWARE PRODUCTS TO THE HOMEREPAIR AND REMODELING MARKET IN THE US AND CANADA THE NOTES ARE TO BE PURCHASED FOR 1065 PER 1000 PRINCIPAL AMOUNT TOGETHER WITH INTEREST ACCRUED UP TO BUT NOT INCLUDING THE PAYMENT DATE WAXMAN SAID THE TENDER OFFER WAS ORIGINALLY SET TO EXPIRE YESTERDAY THE COMPANY SAID THE OFFER WAS EXTENDED TO BETTER COORDINATE THE COMPLETION OF THE OFFER WITH WAXMAN'S DEBT REFINANCING WHICH IT ANTICIPATES WILL CLOSE ON MARCH 31 ALL OTHER TERMS OF THE TENDER OFFER REMAIN THE SAME THE COMPANY SAID AT THE CLOSE OF BUSINESS ON LAST FRIDAY ABOUT 75 MILLION AGGREGATE PRINCIPAL AMOUNT OF THE NOTES HAD BEEN TENDERED WAXMAN SAID 9403220003 940322 SANDOZ TO PRICE CHOLESTEROL DRUG FAR BELOW RIVALS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SANDOZ PHARMACEUTICALS CORP PLANS TO LAUNCH ITS CHOLESTEROLREDUCING DRUG AT ROUGHLY HALF THE PRICE OF COMPETING PRODUCTS MADE BY MERCK & CO AND BRISTOLMYERS SQUIBB CO BY PRICING ITS DRUG AT NEARGENERICDRUG LEVELS THE US UNIT OF SWISS PHARMACEUTICAL MAKER SANDOZ AG IS TAKING AIM AT AN ESTIMATED HUGE MULTIBILLIONDOLLAR MARKET DOMINATED BY MERCK'S MEVACOR AND ZOCOR A FEW YEARS AGO BRISTOLMYERS INTRODUCED ITS DRUG PRAVACHOL PRICED SOMEWHAT BELOW MERCK'S DRUGS BY SHARPLY UNDERPRICING THE MARKET LEADERS SANDOZ IS CAPITALIZING ON THE GROWING COST CONSCIOUSNESS OF THE MARKET PARTICULARLY IN MANAGEDCARE CUSTOMERS A LESS COSTLY ALTERNATIVE TO THE CURRENT MARKET LEADERS WOULD OFFER MANAGEDCARE CUSTOMERS A WAY TO QUICKLY CUT ONE OF THEIR BIGGEST PRESCRIPTIONDRUG COSTS AND IT MIGHT APPEAL TO INDIVIDUAL PATIENTS WHO PAY FOR DRUGS OUT OF POCKET THE SANDOZ DRUG WOULD PRESENT A TEST FOR MERCK'S RECENTLY ACQUIRED MEDCO CONTAINMENT SERVICES CORP WHICH MANAGES DRUG COSTS FOR HEALTH PLANS MEDCO CUSTOMERS AND COMPETITORS WILL UNDOUBTEDLY BE WATCHING TO SEE WHETHER MEDCO OFFERS THE LOWERPRICED SANDOZ PRODUCT OR WHETHER MERCK MATCHES THE SANDOZ PRICE A SPOKESMAN FOR MERCK SAID THE COMPANY HADN'T DECIDED ON A STRATEGY TO COMBAT THE SANDOZ PRICING THE MARKET IS EXPANDING HE SAID THERE ARE MANY MILLIONS OF PEOPLE WHO HAVE HIGH CHOLESTEROL WHO NEED TO BE TREATED AND HAVEN'T BEEN TREATED WE BELIEVE THAT MEVACOR AND ZOCOR WILL CONTINUE TO GROW THE SANDOZ DRUG WOULD HAVE TO UNDERGO A REVIEW BY MEDCO'S PHARMACY AND THERAPEUTICS COMMITTEE A SPOKESMAN SAID THE COMMITMENT FROM MERCKMEDCO IS TO OFFER THE BEST MEDICINE FOR THE BEST PATIENT HEALTH 9403220002 940322 BUSINESS BRIEF INTEGRATED RESOURCES INC PACT MAY AID BID FOR CONTROL BY STEINHARDT MANAGEMENT INTEGRATED RESOURCES INC SIGNED A PRELIMINARY AGREEMENT THAT COULD HASTEN STEINHARDT MANAGEMENT CO'S EFFORTS TO GAIN CONTROL OF THE FORMER TAXSHELTER COMPANY INTEGRATED ONE OF THE LARGEST SYNDICATORS OF LIMITED PARTNERSHIPS IN THE 1980S HAS BEEN OPERATING WITH PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE FOR FOUR YEARS CLOSELY HELD STEINHARDT AN AFFILIATE OF A NEW YORKBASED HEDGE FUND RUN BY MICHAEL STEINHARDT HAS BEEN SEEKING TO ACQUIRE INTEGRATED FOR TWO YEARS INTEGRATED SAID IT SIGNED A NONBINDING TERM SHEET WITH THREE CREDITOR COMMITTEES AND STEINHARDT UNDER THE TERMSHEET AGREEMENT CREDITORS WILL GET TO VOTE ON THE STEINHARDT PLAN WHILE A PROPOSED PLAN FILED BY INTEGRATED WILL BE TREATED SOLELY AS A BACKUP PLAN ACCORDING TO A SPOKESWOMAN FOR INTEGRATED THE TERM SHEET MUST STILL BE CONVERTED INTO A DEFINITIVE AGREEMENT AND FILED WITH THE BANKRUPTCY COURT A JUDGE IS EXPECTED TO CONSIDER THE ALTERNATIVE PLANS AT AN APRIL 22 HEARING 9403220001 940322 USJAPAN COUNTING WHAT COUNTS BY KENICHI OHMAE TOKYO THE MEDICAL CONDITION IS WELLKNOWN WHEN LIGHT IS DIM THE UNFORTUNATE PEOPLE WHO SUFFER FROM NIGHT BLINDNESS LOSE ALL ABILITY TO SEE THE ECONOMIC ANALOGUE IS PERHAPS LESS WELLKNOWN BUT IT IS FAR MORE SERIOUS BECAUSE IT IS SO CONTAGIOUS IN THE BROAD DAYLIGHT OF MEDIA ATTENTION TRADE NEGOTIATORS OFTEN PROVE UNABLE TO SEE LET ALONE UNDERSTAND THE FACTS OF MODERN CROSSBORDER ECONOMIC ACTIVITY DAILY HEADLINES NOTWITHSTANDING THE TRADE PROBLEM BETWEEN THE US AND JAPAN IS NOT THE AMERICAN TRADE DEFICIT THE FLOWS OF ECONOMIC ACTIVITY MEASURED BY OFFICIAL TRADE STATISTICS REPRESENT A TINY AND STEADILY DECREASING SHARE OF THE ECONOMIC LINKAGES BETWEEN THE TWO COUNTRIES THESE DATA REMEMBER DO NOT COUNT THE REVENUES FROM SERVICES OR FROM LICENSES OR FROM INTELLECTUAL PROPERTY OR FROM GOODS MANUFACTURED BY US FIRMS IN THIRD COUNTRIES BUT SOLD IN JAPAN OR FROM GOODS BOTH MANUFACTURED AND SOLD BY US FIRMS IN JAPAN ALL THEY COUNT IS THAT RELATIVELY SMALL UNIVERSE OF THINGS PHYSICALLY PRODUCED IN THE US CRATED LOADED ONTO SHIPS OR PLANES PASSED THROUGH CUSTOMS AND THEN UNCRATED AND SOLD IN JAPAN WHEN A US SOFTWARE HOUSE SELLS ITS LEADINGEDGE PROGRAM IN TOKYO THE TRADE DATA CAPTURE LITTLE IF ANY OF THE VALUE ADDED WHEN A US CHIP MANUFACTURER SELLS ITS PRODUCTS IN OSAKA THE SALES MAY COUNT TOWARD THE 20 OF THE MARKET EARMARKED FOR US FIRMS BUT IF THE CHIPS WERE AS LIKELY FABRICATED IN MALAYSIA THEY DO NOT SHOW UP IN THE TRADE DATA WHEN A US SPORTSWEAR MANUFACTURER RETAILS IN HOKKAIDO GARMENTS SEWN IN INDONESIA OR TAIWAN THE SALES DO NOT MATTER TO THOSE WHO COUNT BILATERAL TRADE FLOWS WHEN JAPANESE CONSUMERS SEE A US MOVIE OR USE THEIR USORIGINATED CREDIT CARDS TRADE WATCHERS ESSENTIALLY IGNORE THEIR ACTIVITIES AS A RESULT THE DATA THAT ATTRACT SO MUCH POLITICAL ATTENTION ARE UNRELIABLE THEY ARE NOT AN ACCURATE REFLECTION OF GENERAL FLOWS OF ECONOMIC ACTIVITY THEY ARE NOT AN ACCURATE REFLECTION OF ANYTHING MOREOVER THEY ARE THE RESULT NOT OF GOVERNMENT POLICIES BUT OF STRATEGIC CHOICES MADE BY INDIVIDUAL COMPANIES OPERATING IN THE GLOBAL MARKETPLACE IT IS THE US CHIP MANUFACTURER NOT MITI THAT DECIDES WHERE TO SITE ITS PLANTS AND THUS WHETHER ITS PRODUCTS WILL SHOW UP IN THE PUBLIC STATISTICS ON TRADE IN INDUSTRIES LIKE THESE THE TALK ABOUT CLOSED JAPANESE MARKETS HAS FAR MORE TO DO WITH MANAGERIAL DECISIONS MADE IN AMERICAN BOARDROOMS THAN WITH PROTECTIONIST PLOTS ORCHESTRATED IN TOKYO IN THE MID1980S IF YOU INCLUDED IN THE TRADE FIGURES ALL THE SALES IN JAPAN OF AMERICAN AS CONSUMERS PERCEIVE THEM GOODS AND SERVICES THE NUMBERS WOULD SHOW THAT THE JAPANESE BOUGHT PER CAPITA FOUR TIMES AS MUCH AMERICAN STUFF AS AMERICANS BOUGHT JAPANESE STUFF SINCE THEN THE RATIO HAS ONLY GROWN LARGER NO REAL PROBLEM HERE TRADE BLINDNESS ALSO LEADS POLICY MAKERS TO FOCUS ON THE DENIAL OF ACCESS TO SUCH JAPANESE INDUSTRIES AS CONSTRUCTION HOUSING AND THE PROVISION OF HEALTH CARE THIS EMPHASIS IS ODD SINCE NO ONE ON EITHER SIDE PRETENDS THAT THESE INDUSTRIES ARE BY ANY REASONABLE STANDARD ANYTHING BUT CLOSED BUT THEY ARE CLOSED NOT ONLY TO US FIRMS BUT TO NEW JAPANESE FIRMS AS WELL DOMESTIC CONSUMERS PAY OUTRAGEOUSLY HIGH PRICES FOR THE SMALL SELECTION THAT THESE INDUSTRIES PROVIDE EFFORTS TO OPEN UP THESE INDUSTRIES WOULD WIN THE PUBLIC'S READY SUPPORT IT IS NOT WELLHONED POLICY THAT KEEPS THEM SHUT BUT HABIT ENTRENCHED SPECIAL INTERESTS AND CORRUPTION HOW CAN A TRADING PARTNER REASONABLY HOPE TO FIX THESE DISTORTIONS OF ECONOMIC ACTIVITY WHEN DOMESTIC LEADERS CANNOT FOR US NEGOTIATORS MOREOVER THIS IS TRICKY GROUND THEIR IRRITATION HAS A LEGITIMATE OBJECT BUT THEIR CASE IS ONESIDED FOR MANY JAPANESE COMPANIES TRYING TO SELL PRODUCTS IN THE US MARKET IS AN EXERCISE IN FRUSTRATION REGULATIONS ARE FAR FROM CONSISTENT AND THE STANDARDS THAT ONE CITY OR STATE OR FEDERAL AGENCY REQUIRES A PRODUCT TO MEET ARE OFTEN SUBSTANTIALLY DIFFERENT FROM THOSE REQUIRED BY THE NEXT EVEN WHERE THERE IS A SINGLE NATIONWIDE STANDARD AS SAY WITH DRUG APPROVALS BY THE FOOD AND DRUG ADMINISTRATION THE HURDLES TO BE LEAPED ARE SIGNIFICANTLY DIFFERENT FROM THOSE ALREADY CLEARED IN JAPAN THERE IS NO PURPOSEFUL CREATION OF OBSTACLES HERE BUT THE RESULT IS A CRAZY QUILT OF DEMANDS THAT CAN EASILY BECOME AS MUCH OF AN INFORMAL NONTARIFF BARRIER AS ANY OF THE COZY OLD BOYS ARRANGEMENTS STILL IN PLACE IN JAPAN IF LEFT UNTREATED TRADE BLINDNESS IS PROGRESSIVE IN ITS LATER STAGES IT LEADS POLICY MAKERS TO HANG ON FOR DEAR LIFE TO THE NEWSBITESIZED PROBLEMS OF INDIVIDUAL COMPANIES THIS OF COURSE HAS RECENTLY HAPPENED WITH THE CLINTON TEAM'S DECISION TO LINK ITS ARGUMENTS TO THE EXPERIENCES IN JAPAN OF SEVEN WELLKNOWN US MULTINATIONALS EACH HEADED BY A CHIEF EXECUTIVE WITH CONSIDERABLE POLITICAL INFLUENCE IN WASHINGTON THIS IS BAD ECONOMICS AND WORSE POLICY EACH OF THESE CASES IS A COMPLICATED STORY IN ITS OWN RIGHT INDUSTRY OVERCAPACITY GOVERNMENT CUTBACKS PRODUCTION DECISIONS TECHNOLOGICAL CHANGES FOR EXAMPLE WHO KNOWS WHERE TRADENEGOTIATED PRODUCTS WILL BE MADE IN THE US OR SOME PLACE LIKE MALAYSIA IN NONE OF THESE CASES IS THE PROBLEM PURELY OR EVEN PRIMARILY JAPANESE OBSTRUCTIONISM MORE TO THE POINT ARE THESE REALLY THE KINDS OF ISSUES THAT AN AMERICAN PRESIDENT SHOULD ADDRESS IN HIS PERSONAL DEALINGS WITH THE HEAD OF ANOTHER GOVERNMENT WE SHOULD KNOW BY NOW THAT WHEN CLEAREYED VISION ON TRADE IS LACKING THE RESULT IS TO RAISE POLITICAL TEMPERATURES AND ANTAGONIZE BUREAUCRATS INTO DEFENSIVENESS YOU'D NEVER KNOW IT FROM ALL THE RECENT SHOUTING IN THE DARK BUT THE ECONOMIC RELATIONSHIP BETWEEN THE US AND JAPAN IS HEALTHIER THAN IT HAS EVER BEEN AND THEIR MUTUAL DEPENDENCE GREATER EVEN IN THE MIDST OF A PAINFUL RECESSION MORE THAN 2000 US COMPANIES ARE SUCCESSFULLY DOING BUSINESS IN JAPAN THIS IS NOT OF COURSE TO SAY THAT REAL PROBLEMS DO NOT EXIST THEY DO ON BOTH SIDES MY POINT IS SIMPLY THAT WHEN THE HANDS ON THE TILLER OF ECONOMIC POLICY BELONG TO THOSE WHO SUFFER FROM TRADE BLINDNESS NO CHANGE IS POSSIBLE AND NO COURSE IS SAFE MR OHMAE IS A PARTNER IN MCKINSEY & CO'S TOKYO OFFICE 9403220078 940223 MARKETING & MEDIA JOURNAL COMMENCES ITS OWN WEEKLY TALLY OF BESTSELLING BOOKS THE WALL STREET JOURNAL TODAY BEGINS WEEKLY PUBLICATION OF ITS OWN LIST OF BESTSELLING HARDCOVER BOOKS THE JOURNAL LIST IS BASED ON ACTUAL RETAIL SALES AT MORE THAN 2500 CHAIN BOOKSTORES NATIONWIDE NO STATISTICAL PROJECTIONS OR WHOLESALE CONSIGNMENTS ARE INCLUDED BECAUSE ALL OF THE STORES SUPPLYING DATA TRACK SALES BY ELECTRONIC SCANNER SALES FIGURES CAN BE OBTAINED FOR THE WEEK ENDED THIS PAST SATURDAY THE JOURNAL LIST WILL THUS INCLUDE THE MOST RECENT DATA OF ANY BESTSELLER LIST SOME WIDELY KNOWN BESTSELLER LISTS ARE BASED ON DATA MORE THAN TWO WEEKS OLD BY THE TIME OF PUBLICATION THE WALL STREET JOURNAL BESTSELLER LIST REFLECTS ALL SALES BY THE FOUR LARGEST RETAIL BOOKSELLERS IN THE COUNTRY BARNES & NOBLE INC'S 958 BARNES & NOBLE B DALTON DOUBLEDAY SCRIBNER'S BOOKSTOP AND BOOKSTAR STORES KMART CORP'S 1275 WALDENBOOKS BRENTANO'S AND BORDERS STORES CROWN BOOKS CORP'S 240 CROWN BOOKS AND SUPER CROWN STORES AND BOOKSAMILLION INC'S 111 BOOKSAMILLION AND BOOKLAND STORES THE JOURNAL LIST ALSO INCLUDES A FEATURE NOT PREVIOUSLY AVAILABLE ON ANY LIST THE WALL STREET JOURNAL SALES INDEX THIS INDEX WILL ENABLE READERS TO COMPARE THE RELATIVE SALES OF TITLES WITHIN THE CATEGORIES OF FICTION AND NONFICTION/GENERAL AND BETWEEN THESE CATEGORIES THE INDEX WILL BE PEGGED TO A BENCHMARK OF 100 FOR THE NO 1 FICTION BESTSELLER EACH WEEK FOR EXAMPLE ON THIS WEEK'S LIST WITHOUT REMORSE BY TOM CLANCY THE 15THLEADING FICTION BESTSELLER HAS A SALES INDEX OF 11 MEANING IT SOLD ONLY 11 AS MANY COPIES AS THE LEADING FICTION BESTSELLER ACCIDENT BY DANIELLE STEEL SIMILARLY EMBRACED BY THE LIGHT BY BETTY EADIE THE LEADING NONFICTION BESTSELLER WITH AN INDEX OF 75 SOLD 75 AS MANY COPIES AS THE STEEL BOOK SEE RELATED LETTER LETTERS TO THE EDITOR UNCHAIN THE JOURNAL'S LIST OF BESTSELLERS WSJ MARCH 22 1994 9402230185 YY94 MM03 9403220075 940218 OUT OF CONTROL' GITANO JEANS' FALL IS SAGA OF CORRUPTION AND MISMANAGEMENT DABAH CLAN'S EMPIRE BUILT ON CHEAP CHIC UNRAVELS AS BROTHERS PLEAD GUILTY FLASHY ADS FLASHIER PARTIES BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GUNS DRAWN AND BADGES FLASHING ABOUT 30 US CUSTOMS AGENTS STORMED INTO THE SEVENTH AVENUE HEADQUARTERS OF JEANSWEAR GIANT GITANO GROUP INC BRUSHING PAST LOBBY VIDEO MONITORS ON WHICH IMAGES OF DANCING JEANSCLAD TEENS FLICKERED THEY FANNED OUT THROUGH THE EXECUTIVE OFFICES AND CARRIED OFF DOZENS OF CARTONS OF FINANCIAL RECORDS THAT DECEMBER 1991 RAID AND ITS AFTERMATH ULTIMATELY ENGULFED GITANO AND ITS FOUNDING DABAH FAMILY IN A SCANDAL THAT HAS SENT THE COMPANY'S FORTUNES AND THOSE OF THE FAMILY CRASHING IN DECEMBER THE COMPANY AND THREE FORMER OFFICERS INCLUDING TWO DABAH SONS PLEADED GUILTY TO FELONY CHARGES THAT THEY HAD SCHEMED TO EVADE IMPORT QUOTAS HAIM AND ISAAC DABAH FACE POSSIBLE ONEYEAR PRISON TERMS WHEN THEY ARE SENTENCED NEXT MONTH THE FAMILY HAS SOLD OR LOST TO CREDITORS ALL OF ITS 43 STAKE IN THE PUBLICLYHELD COMPANY IT BUILT ALREADY SPUTTERING UNDER HEAVY LOSSES AND DEBT GITANO WAS PUT UP FOR SALE LAST MONTH ITS DIRECTORS HAD LITTLE CHOICE GITANO'S BIGGEST CUSTOMER WALMART STORES INC SAID IT WOULDN'T DO BUSINESS WITH A SUPPLIER THAT HAD VIOLATED CUSTOMS LAWS WALMART HAS SINCE AGREED TO ACCEPT GITANO MERCHANDISE WHILE SALE NEGOTIATIONS PROCEED AND HAS SIGNALED ITS WILLINGNESS TO WORK WITH A NEW OWNER BUT THE LONGTERM FATE OF GITANO IS STILL IN DOUBT THE CUSTOMS EPISODE CLOSED A SQUALID CHAPTER IN ONE OF THE RAG TRADE'S MORE COLORFUL FAMILY SAGAS AMBITION SWEAT AND FORTUITOUS TIMING CATAPULTED ISRAELI IMMIGRANT MORRIS DABAH AND HIS THREE SONS FROM THE GRITTY STREETS OF NEW YORK'S GARMENT DISTRICT TO PERCHES ATOP ONE OF THE HIGHESTFLYING APPAREL CONCERNS OF THE 1980S BUT INEPTITUDE AND CORRUPTION TOPPLED THEM JUST AS QUICKLY THE CUSTOMS INVESTIGATION BROUGHT TO LIGHT A NEST OF OTHER PROBLEMS RANGING FROM COMPANY SELFDEALING TO AN ALMOST COMPLETE LACK OF FINANCIAL CONTROLS GITANO INSIDERS STILL TALK ABOUT THE BLACK HOLE 15 MILLION IN SUPPOSED 1991 PROFIT THAT COULDN'T BE VERIFIED DURING THE YEAREND AUDIT THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING WHETHER GITANO EXECUTIVES INFLATED EARNINGS AND A SHAREHOLDER CLASSACTION SUIT ALLEGES DELIBERATE FINANCIAL MISSTATEMENTS THE COMPANY'S STOCK IS IN THE PROCESS OF BEING DELISTED FROM THE NEW YORK STOCK EXCHANGE FOUR OF GITANO'S FIVE OUTSIDE DIRECTORS HAVE RESIGNED THREE OF THEM JUST LAST MONTH ROBERT GREGORY A FORMER VF CORP EXECUTIVE WHO WAS BROUGHT IN LAST YEAR BY DIRECTORS AND CREDITORS TO MOP UP THE MESS SAYS HE IS ASTONISHED BY THE SHAMBLES THE DABAHS LEFT BEHIND IT WOULD TAKE FIVE YEARS TO CREATE PROPER REPORTING SYSTEMS AT GITANO TO MAKE THIS THING WORK SAYS MR GREGORY CHAIRMAN AND CHIEF EXECUTIVE OFFICER THIS WAS A COMPANY THAT WAS COMPLETELY OUT OF CONTROL THE DABAHS DECLINED TO BE INTERVIEWED FOR THIS ARTICLE BUT KENNETH J BIALKIN AN ATTORNEY WITH SKADDEN ARPS SLATE MEAGHER & FLOM WHO REPRESENTS THE DABAHS SAYS THEY WERE SIMPLY THE VICTIMS OF TOO MUCH SUCCESS TOO FAST THE DABAHS ARE THE BIG LOSERS HERE HE SAYS THEY'D BE THE FIRST TO ADMIT THAT THE COMPANY'S GROWTH AND COMPLEXITY PRESENTED THEM WITH CHALLENGES THAT WERE EXTREMELY DIFFICULT TO COPE WITH OTHERS SEE IT DIFFERENTLY THESE GUYS THOUGHT THEY WERE BULLETPROOF BECAUSE OF GITANO'S LINK WITH RETAILING GIANT WALMART SAYS BRYAN MARSAL A NEW YORK MANAGEMENT CONSULTANT WHO WAS ONE OF DOZENS THAT GITANO ENLISTED IN THE PAST TWO YEARS' RESCUE EFFORT INDEED THE DABAHS MAINTAINED APPEARANCES UP TO THE END JUST A FEW MONTHS BEFORE CUSTOMS AGENTS CAME CALLING HAIM DABAH PLAYED HOST TO 1000 GUESTS AT HIS SON'S BAR MITZVAH AT THE GRAND BALLROOM OF THE WALDORF ASTORIA THERE WAS LESTER LANIN'S 40PIECE ORCHESTRA A CAKE BAKED IN THE SHAPE OF THE WAILING WALL AND A TROUPE OF LAMBADA DANCERS THAT THE FAMILY FLEW IN FROM BRAZIL BUT THE FLOURISH THAT BROUGHT GASPS WAS A GLASSENCLOSED WIND TUNNEL FILLED WITH 1 BILLS EACH CHILD AT THE PARTY WAS BRIEFLY ESCORTED INTO THE CHAMBER TO GRAB AS MANY FISTFULS OF DOLLARS AS HE OR SHE COULD THAT GITANO COULD GROW SO FAST AND FOR SO LONG WITHOUT ITS DUBIOUS BUSINESS PRACTICES COMING TO LIGHT IS A TESTAMENT TO THE CLOSED RANKS OF THE DABAH CLAN AND TO THE STRENGTH OF THE FASHION CRAZE FOR SKINTIGHT JEANS WHILE CALVIN KLEIN AND GLORIA VANDERBILT PEDDLED 50 JEANS TO THE DEPARTMENTSTORE TRADE THE DABAHS SAW OPPORTUNITY IN THE UNTAPPED BLUECOLLAR MARKET THAT DESIGNERS SPURNED GITANO LINKED UP WITH WALMART AND OTHER BUDGET MASSMERCHANTS AND AS THESE STORES BLANKETED THE NATION'S HEARTLAND GITANO FILLED THEIR RACKS WITH LOWPRICE CHIC HAIM DABAH AT AGE 42 THE ELDEST AND MOST FLAMBOYANT OF THE SONS PROMOTED GITANO'S 15 JEANS WITH 20 MILLIONAYEAR TV AD CAMPAIGNS AND GLOSSY SPREADS IN VOGUE AND ELLE GITANO'S SALES GREW BY AN AVERAGE OF 40 A YEAR TO A PEAK OF 827 MILLION IN 1992 THE PATRIARCH WHO STARTED IT ALL MORRIS DABAH WAS BORN IN SYRIA AND MIGRATED TO NEW YORK'S GARMENT DISTRICT IN THE 1970S AFTER HAVING WORKED AS A LOWLEVEL GOVERNMENT BUREAUCRAT IN ISRAEL HE SET UP SHOP ON THE FRINGES OF SEVENTH AVENUE AS A JOBBER A MIDDLEMAN WHO BUYS OVERSTOCKED CLOSEOUT GOODS AND RESELLS THEM TO BARGAIN BASEMENTS THE ELDER DABAH NOW 69 FOUND SUPPORT WITHIN BROOKLYN'S INSULAR SEPHARDIC JEWISH COMMUNITY WHERE BETTERESTABLISHED COMPATRIOTS HELPED HIM LINE UP LOANS AND LETTERS OF CREDIT WITH REPUBLIC NATIONAL BANK OF NEW YORK WHOSE CHAIRMAN IS SEPHARDIC BILLIONAIRE EDMOND SAFRA AFTER THEY GRADUATED FROM HIGH SCHOOL HIS SONS HAIM ISAAC AND EZRA JOINED THE BUSINESS WHERE THEIR FATHER TUTORED THEM IN THE ROUGHANDTUMBLE WAYS OF THE GARMENT DISTRICT A DEAL IS ALWAYS OPEN TO BE RENEGOTIATED THE FATHER HAS OFTEN SAID THE AMBITIOUS DABAH SONS FOUND A KINDRED SPIRIT IN ROBERT REISS A BRONXBORN SPORTSWEAR BUYER AT ALEXANDER'S DEPARTMENT STORE IN NEW YORK IN 1977 THEY INVITED MR REISS TO INVEST 20000 TO JOIN THEIR BUSINESS WHICH TWO YEARS LATER BEGAN MARKETING FASHION JEANS UNDER THE GITANO LABEL A NAME CONCEIVED BY EZRA NOW 40 THE DABAHS THUS JOINED AN INFLUX OF OTHER NEWLYARRIVED SEPHARDIC IMMIGRANTS WHO WERE WELL ON THEIR WAY TO AN INSTANT FORTUNE IN DESIGNER JEANS AMONG THEM SASSON FOUNDER PAUL GUEZ AND GEORGES MARCIANO AND HIS BROTHERS MAURICE AND PAUL WHO OWN GUESS JEANS IT WAS THE EQUIVALENT OF A GARMENTINDUSTRY GOLD RUSH JEANS THAT COST 4 TO MAKE IN THE FAR EAST MIGHT RETAIL FOR MORE THAN TEN TIMES THAT AT AMERICAN MALLS IN THE EARLY DAYS GITANO SOLD TO A FEW DEPARTMENT STORES SOON THOUGH IT TURNED TO BUDGET RETAILERS WHERE THE DABAHS AND MR REISS WERE WELLCONNECTED THE DISCOUNT CHAINS WERE CLAMORING FOR TRENDY APPAREL AND FOR GITANO THE PROSPECT OF HUGE VOLUME WAS ALLURING BUDGET SHOPPERS ACCUSTOMED TO COMMODITY BRANDS SWORE BY GITANO'S STYLES AND FIT IN 1980 WE FIGURED THAT WE'D DO ABOUT 7 MILLION BUT INSTEAD WE DID 45 MILLION RECALLS MR REISS WHO WAS A GITANO EXECUTIVE VICE PRESIDENT BUT LEFT IN 1992 AFTER FALLING OUT WITH THE DABAHS MORRIS DABAH GITANO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER STAYED IN THE BACKGROUND HUNCHED OVER A CALCULATOR AT HIS DESK AT GITANO'S HEADQUARTERS AT 1411 BROADWAY PUNCHING COLUMNS OF FIGURES HIS OLDEST SON HAIM BECAME GITANO'S PRESIDENT AND OFFICIAL SPOKESMAN CHARMING EXTROVERTED AND FOND OF THE GOOD LIFE HE CULTIVATED CELEBRITY DESIGNERS LIKE ISAAC MIZRAHI WHOSE BUSINESS HE PERSONALLY INVESTED IN WHILE INGRATIATING HIMSELF TO BIG DISCOUNTERS LIKE KMART CORP TARGET STORES AND CALDOR CORP HAIM CREATED WHAT WAS LIKE A CULT THAT WE WERE ALL THRILLED TO BE A PART OF IT SAYS JOHN AMODEO A CONSULTANT WHO DEVELOPED GITANO PROMOTIONS FROM 1984 TO 1993 HAIM THREW COMPANY PARTIES AT PALLADIUM MK AND ALL THE HOT CLUBS EVERY DAY YOU COULDN'T WAIT TO GET TO WORK HAIM DABAH AND MR AMODEO DREAMED UP MAILIN REBATES GITANO GIRL MODEL CONTESTS AND OTHER GIMMICKS TO HEIGHTEN BRAND RECOGNITION DURING AN ANNUAL GITANO WEEK STORE MANAGERS VIED TO MOVE THE MOST MERCHANDISE TO WIN CLUB MED VACATIONS OR COLOR TVS BUT THE COMPANY'S SPLASHY MARKETING AND BREATHLESS GROWTH MASKED BIG PROBLEMS GITANO DIDN'T HAVE SO MUCH AS A BUSINESS PLAN AND IT NEVER REINED IN ITS CONTRACTORS MOSTLY FOREIGN MANUFACTURERS WHO OFTEN SHIPPED THE WRONG GOODS SOMETIMES WEEKS OR MONTHS LATE IN THOSE DAYS MR REISS RECALLS EVEN WHEN WE MADE MISTAKES WE STILL MADE A LOT OF MONEY BUT RETAILERS NOTICED IT TOOK GITANO 10 OR 12 MONTHS TO DO WHAT OTHER BRANDS COULD DO IN FOUR MONTHS SAYS MARC BALMUTH CALDOR'S PRESIDENT EVEN THOUGH GITANO GOT THE FASHIONS PRICES AND MARKETING RIGHT HE SAYS ITS QUALITY WAS JUST ON THE EDGE CALDOR STOPPED BUYING GITANO APPAREL IN 1991 BY THEN THOUGH THE DABAHS HAD TAKEN THE COMPANY PUBLIC IN A 37 MILLION 1988 INITIAL OFFERING GITANO WAS BUOYED BY ITS LARGEST CLIENT WALMART WHICH HAD STARTED BUYING GITANO GOODS IN THE MID1980S AND WHICH WAS OPENING MORE THAN 100 STORES A YEAR AT THE PEAK IN 1990 WALMART BOUGHT AS MUCH AS 300 MILLION WORTH OF GITANO GOODS ANNUALLY INDUSTRY ANALYSTS ESTIMATE AS GITANO GREW ALONG WITH WALMART HAIM DABAH SHUTTLED ALMOST WEEKLY TO WALMART'S BENTONVILLE ARK HEADQUARTERS ALONG WITH REPRESENTATIVES FROM OTHER KEY VENDORS LIKE RUBBERMAID INC AND PROCTER & GAMBLE CO HAIM WAS INVITED TO SIT ON WALMART'S ADVISORY VENDORS' COUNCIL WALMART ROUTINELY UNDERCUT ITS COMPETITORS' PRICES ON GITANO JEANS AND ADVERTISED THE FACT TAUNTING COMPETITORS LIKE CALDOR AND VENTURE BY NAME IN PROMOTIONS THE COMPARISON PRICING HURT OUR RELATIONSHIP WITH MANY STORES MR REISS SAYS BUT HAIM DABAH WAS ANXIOUS TO ACCOMMODATE HIS BIG CLIENT EVEN IF IT HURT HIS COMPANY ONCE WHEN WALMART ABRUPTLY DECIDED TO RENEGOTIATE THE PRICE OF A 48 MILLION ORDER OF GITANO BLOUSES GITANO SIMPLY BILLED WALMART 4 MILLION TO COVER ITS COSTS AND GAVE UP EVERY PENNY OF ITS OWN 800000 PROFIT HAIM WOULDN'T STAND UP TO WALMART SAYS MR REISS NOW THE PRESIDENT OF NO EXCUSES SPORTSWEAR LTD ANOTHER JEANS MAKER HAIM'S CONCESSIONS PAID OFF DURING WHAT CAME TO BE KNOWN AS THE WALMART ALERT AROUND 1990 WHEN WALMART ORDERED ALL ITS VENDORS TO ATTACH BARCODE PRICE TAGS TO MERCHANDISE GITANO EXECUTIVES PANICKED THE SCANNERS COULD COMPARE EVERY GARMENT AGAINST THE ORIGINAL ORDER AND GITANO'S FOREIGN CONTRACTORS HABITUALLY MADE SUBSTITUTIONS WHEN FILLING ORDERS SUCH AS SHIPPING OUT SNAPFRONT JEANS INSTEAD OF BUTTONFRONT JEANS WE HAD REALLY DUG OURSELVES INTO A BIG HOLE ONE GITANO MANAGER RECALLS WE KNEW THAT IT WOULD TAKE US YEARS TO CORRECT THE FACTORIES SO THAT THEY WOULD CONSISTENTLY PRODUCE WHAT WE REALLY ORDERED IT WAS THAT MESSED UP HAIM DABAH FLEW TO BENTONVILLE AND BOUGHT MORE TIME BY ASSURING WALMART THAT GITANO WAS IN THE MIDST OF DEVELOPING ITS OWN STATEOFTHEART BARCODING SYSTEM IN FACT GITANO WASN'T DEVELOPING A SYSTEM AT ALL TWO FORMER EXECUTIVES SAY GITANO FINALLY DID GET AROUND TO USING A BAR CODE A YEAR LATER BUT ITS SYSTEM PROVED ERRATIC BY THE MID1980S AS MORE COMPETING FASHION BRANDS INVADED THE BUDGET CHAINS THE DABAHS VEERED IN A NEW DIRECTION THEY BEGAN PILING ON NEW APPAREL DIVISIONS AND OPENING GITANOOWNED FACTORIES AND RETAIL STORES IN A QUEST TO BECOME IN HAIM DABAH'S WORDS THE LIZ CLAIBORNE OF THE MASSES ISAAC DABAH NOW 36 SPEARHEADED GITANO'S PURCHASE OF FACTORIES IN MISSISSIPPI GUATEMALA AND JAMAICA IN 1988 BUT IN A MATTER OF MONTHS THE NEW FACTORIES BECAME BOTTLENECKED AS EACH OF THE COMPANY'S 11 MARKETING DIVISIONS BEGAN CALLING THEM DIRECT TO BOOK ORDERS THE FACTORIES RAN BEHIND LURCHING FROM ORDER TO ORDER IN STOPANDGO RUNS IN THE FOURTH QUARTER OF 1988 THE INEFFICIENCIES RESULTED IN 11 MILLION IN LOST SALES HAIM DABAH LATER TOLD WALL STREET ANALYSTS AT HIS FRENCH ANTIQUE DESK AT HEADQUARTERS ISAAC DABAH FUMED AT UNDERLINGS HE SPENT HOURS ON THE PHONE CALLING THE FACTORIES STARTING AND STOPPING PRODUCTION A FORMER ASSOCIATE RECALLS INSTEAD OF TYING PRODUCTION TO DEMAND ISAAC ORDERED THE FACTORIES TO RUN AT FULL CAPACITY SO GITANO COULD RESPOND QUICKLY TO ORDERS AT ANY GIVEN TIME IN 1989 WE HAD AT LEAST THREE YEARS' WORTH OF INVENTORY OF JEANS IN STORAGE ESTIMATES ONE FORMER GITANO MANAGER TO GET RID OF THE EXCESS INVENTORY HAIM DABAH DECIDED TO EXPAND GITANO'S SMALL CHAIN OF 16 OUTLET STORES BY 1991 GITANO HAD OPENED 88 STORES MANY OF THEM IN BAD LOCATIONS WALL STREET BY NOW HAD COOLED ON GITANO IN AUGUST 1990 GOLDMAN SACHS & CO APPAREL ANALYST JAY MELTZER TRIMMED HIS FULLYEAR EARNINGS ESTIMATE FOR GITANO TO 250 A SHARE FROM 290 PROMPTING GITANO SHARES TO TUMBLE 475 TO 19875 THE FOLLOWING DAY HAIM TOLD WOMEN'S WEAR DAILY THERE'S ABSOLUTELY NOTHING NEGATIVE COMING OUT OF THE COMPANY BUT WHEN GITANO'S 1990 RESULTS WERE RELEASED A FEW MONTHS LATER NET INCOME PLUNGED 74 TO 8 MILLION OR 54 CENTS A SHARE THE NEXT YEAR GITANO POSTED A NET LOSS DURING THE YEAREND AUDIT FOR 1991 COOPERS & LYBRAND GITANO'S ACCOUNTANTS FOUND GLARING DISCREPANCIES INCLUDING WHAT BECAME KNOWN INSIDE THE COMPANY AS THE BLACK HOLE MORE THAN 15 MILLION BOOKED AS PROFIT COULD NOT BE VERIFIED AND WAS DEDUCTED BEFORE AUDITED FIGURES WERE RELEASED COOPERS & LYBRAND DECLINED TO BE INTERVIEWED FOR THIS ARTICLE ACCOUNTING DISCREPANCIES WERE COMMONPLACE AT GITANO THE NEW CHIEF EXECUTIVE MR GREGORY SAYS ONE OF THE BIGGEST PROBLEMS I FACED LAST YEAR HE SAYS WAS SALESPEOPLE ROUTINELY GRANTING DISCOUNTS TO RETAILERS WITHOUT DEDUCTING THEM FROM ORIGINAL INVOICES THE COMPANY THOUGHT THEY HAD SOLD AN ITEM AT A 32 PROFIT MARGIN BUT WITH THE DISCOUNTS THEY HAD GIVEN UP 10 OR MORE OF THAT PROFIT AND DIDN'T EVEN KNOW IT HE SAYS IT WAS AN INGRAINED PART OF THE CULTURE IN AN AMENDED COMPLAINT ORIGINALLY FILED IN 1991 IN FEDERAL DISTRICT COURT IN MANHATTAN GITANO SHAREHOLDERS ACCUSED MANAGEMENT OF SYSTEMATIC OVERSTATEMENT AND MISSTATEMENT OF THE COMPANY'S FINANCIAL CONDITION AND FUTURE PROSPECTS ON FEB 4 THE CLASS ACTION WAS EXTENDED TO INCLUDE COOPERS & LYBRAND AS WELL AS A NUMBER OF GITANO'S BANK LENDERS AS DEFENDANTS GITANO'S 1991 YEAREND 10K FILING DISCLOSED HOW THE DABAHS EFFECTIVELY HAD USED GITANO FUNDS TO PROP UP OTHER FAMILYOWNED BUSINESSES THE 130STORE CHILDREN'S PLACE RETAIL CHAIN AND OTHER DABAHOWNED APPAREL CONCERNS WERE BIG GITANO CUSTOMERS AND WHEN THESE FIRMS RENEGED ON PAYMENTS FOR GOODS THAT GITANO SHIPPED TO THEM GITANO TOOK A 28 MILLION WRITEOFF IN 1991 FOR RELATED PARTY RECEIVABLES MR BIALKIN THE ATTORNEY FOR THE DABAHS SAYS THE SELFDEALING WAS FULLY DISCLOSED AND WAS SUBJECT TO THE OVERSIGHT AND REVIEW OF THE DIRECTORS INCLUDING THE OUTSIDE DIRECTORS HE ALSO NOTES THAT THE DABAHS SOMETIMES MADE LOANS TO GITANO TRIGGERED BY THE SHAREHOLDER SUIT THE SEC LAUNCHED ITS INVESTIGATION ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE SEC IS LOOKING INTO TRADING ACTIVITY IN GITANO STOCK IN 1992 AS WELL AS ALLEGATIONS THAT GITANO'S EARNINGS WERE FALSELY INFLATED NO CURRENT OR FORMER GITANO OFFICIALS HAVE BEEN CHARGED GITANO'S CUSTOMS TROUBLES MEANWHILE WERE JUST BEGINNING THE COMPANY FOUND ITSELF IN 1991 WITH A MAJOR SHIPMENT OF WOMEN'S KNIT TOPS FROM SEVERAL OF ITS CONTRACTORS IN COUNTRIES WITH IMPORT QUOTAS INCLUDING MALAYSIA AND CHINA BUT THE ITEMS WERE MARKED AS MADE IN THE MALDIVE ISLANDS WHICH AREN'T SUBJECT TO QUOTAS ISAAC AND HAIM DABAH ALONG WITH ANOTHER GITANO EXECUTIVE MET AND DECIDED TO IMPORT THE BLOUSES ANYWAY SUSPICIOUS CUSTOMS OFFICIALS RAIDED THE COMPANY LATER THAT YEAR YET EVEN THAT DIDN'T STOP GITANO WHICH FALSIFIED THE COUNTRY OF ORIGIN ON YET ANOTHER SHIPMENT OF KNIT TOPS IN 1992 THE SHIPMENTS TOGETHER HAD A DECLARED VALUE OF 27 MILLION THAT KIND OF CUSTOMS SCAM IS IN FACT FAIRLY COMMON IN THE GARMENT BUSINESS IT IS ONE OF THE INDUSTRY'S WORSTKEPT SECRETS BUT GITANO WAS BOLDER THAN MOST ROBERT VAN ETTEN SPECIAL AGENT IN CHARGE OF THE US CUSTOMS OFFICE IN NEW YORK SAYS GITANO'S OFFICERS HELD MEETINGS TO PLAN WHAT THEY WERE GOING TO DO BEFORE THEY BROKE CRIMINAL STATUTES THEY KNEW WHAT THEY WERE DOING WAS WRONG AS THE COMPANY'S FORTUNES DETERIORATED ITS RELATIVELY PASSIVE BOARD BEGAN TO ROUSE ITSELF TWO OUTSIDE DIRECTORS LAURA SLOATE CHAIRMAN OF WALL STREET FIRM SLOATE WEISMAN MURRAY & CO AND MICHAEL GOLDSTEIN VICE CHAIRMAN OF TOYS R US BECAME ESPECIALLY VOLUBLE LAURA KEPT COMPLAINING SHE WANTED MORE DISCIPLINE MR REISS SAYS HAIM AND ISAAC PRIVATELY WANTED TO GET RID OF HER BUT THEY KNEW THEY COULDN'T MS SLOATE AND MR GOLDSTEIN DECLINED COMMENT BOTH HAVE SINCE RESIGNED ALONG WITH KEVIN KENNEDY A PARTNER AT GOLDMAN SACHS AND NORMAN MATTHEWS A FORMER VICE CHAIRMAN OF FEDERATED DEPARTMENT STORES INC BY EARLY 1992 GITANO'S DIRECTORS HAD LOST PATIENCE WITH HAIM DABAH'S EXCUSES AND THEIR INABILITY TO GET STRAIGHT ANSWERS FROM GITANO'S CHIEF FINANCIAL OFFICER STANLEY GREENSTEIN WHO WAS FIRED LATER THAT YEAR MR GREENSTEIN NOW SAYS THE DABAHS KEPT HIM IN THE DARK ON MANY FINANCIAL MATTERS AND RESISTED WHEN HE PRESSED THEM TO TIGHTEN CONTROLS WE DIDN'T HAVE A HANDLE ON OUR FINANCIAL SYSTEMS MR GREENSTEIN SAYS WE LOST CONTROL BUT HE ALSO CONCEDES A LOT OF THE FINANCIAL PROBLEMS I SHOULD HAVE SEEN THE DABAHS HAD USED THEIR 43 STAKE IN GITANO TO SECURE BANK LOANS TO FAMILYOWNED BUSINESSES INCLUDING CHILDREN'S PLACE IN NOVEMBER 1992 AS GITANO'S SHARES SANK TO 350 CITIBANK SOLD A 14 STAKE IN GITANO IT WAS HOLDING AS COLLATERAL ON A LOAN TO THE DABAHS FEARING THAT OTHER CREDITORS MIGHT FOLLOW SUIT THE DABAH FAMILY FILED INDIVIDUAL PETITIONS FOR CHAPTER 11 BANKRUPTCY PROTECTION THE COMPANY WAS IN ALMOST TOTAL DISARRAY BY THE TIME CREDITORS AND OUTSIDE DIRECTORS BROUGHT IN MR GREGORY AS THE NEW CHIEF EXECUTIVE OFFICER LAST YEAR THE FOLKSY 51YEAROLD SOUTH CAROLINIAN WHO HAD ONCE RUN VF CORP'S 1 BILLION LEE JEANS DIVISION FOLDED ALL BUT GITANO'S CORE WOMEN'S SPORTSWEAR DIVISION AND SHUTTERED SIX OF ITS SEVEN MANHATTAN SHOWROOMS MR GREGORY PARED DEBT TO 130 MILLION FROM 247 MILLION AND FOR HIS EFFORTS RECEIVED A BONUS THAT BROUGHT HIS 1993 COMPENSATION UP TO 5 MILLION EVEN AS MR GREGORY ATTEMPTED TO PICK UP SOME OF THE PIECES OF GITANO'S SHATTERED FORTUNES THOUGH HAIM DABAH REMAINED PRESIDENT OF THE COMPANY WHILE HIS FATHER AND BROTHER ISAAC REMAINED DIRECTORS THAT ARRANGEMENT FINALLY ENDED JUST TWO MONTHS AGO WHEN ALL THREE RESIGNED DAYS BEFORE HAIM AND ISAAC AGREED TO PLEAD GUILTY TO DEFRAUDING THE US CUSTOMS SERVICE GITANO AGREED TO PAY 2 MILLION IN FINES THE GUILTY PLEAS PROMPTED WALMART TO STOP ORDERING FROM GITANO ALTHOUGH WALMART CONTINUES TO RECEIVE GITANO APPAREL IT HAD PREVIOUSLY ORDERED GITANO HASN'T BOOKED ANY NEW BUSINESS FROM WALMART OR ANYONE ELSE THIS YEAR ACCORDING TO MR GREGORY LAST YEAR WALMART ALONE BOUGHT ABOUT 175 MILLION OF GITANO MERCHANDISE HE SAYS IF GITANO'S CUSTOMS VIOLATIONS WERE INDEED THE DEALBREAKER FOR WALMART IT RAISES QUESTIONS WHY WALMART CONTINUES TO BUY GOODS FROM BONJOUR INTERNATIONAL ANOTHER JEANS MAKER THAT PLEADED GUILTY TO CUSTOMS FRAUD IN 1993 TO THE BEST OF OUR KNOWLEDGE BONJOUR HAS NOT BEEN GUILTY OF ANY WRONGDOING A WALMART SPOKESMAN SAYS SINCE BOWING OUT OF GITANO THE DABAH FAMILY HAS EMERGED FROM PERSONAL BANKRUPTCY AND IS ATTEMPTING TO REGROUP MORRIS IS RETIRED WHILE AWAITING SENTENCING ISAAC IS RUNNING GLORIA VANDERBILT APPAREL INC WHICH GITANO BOUGHT IN 1988 AND THEN SPUN OFF LAST YEAR TO A COMPANY OWNED BY A FAMILY FRIEND EZRA THE ONLY SON NOT TO BE IMPLICATED IN THE CUSTOMS CASE IS PRESIDENT OF CHILDREN'S PLACE HAIM CURRENTLY UNEMPLOYED IS SAID TO BE TRYING TO START A NEW BUSINESS AS AN APPAREL CONSULTANT A PAGEONE ARTICLE ON GITANO GROUP INC IN FRIDAY'S EDITION INCORRECTLY STATED THAT BONJOUR INTERNATIONAL HAD PLEADED GUILTY TO CUSTOMS FRAUD IN 1993 IN AN INDICTMENT BONJOUR WAS ACCUSED OF VIOLATING CUSTOMS LAWS BUT THE COMPANY HASN'T ENTERED A PLEA IN THE CASE WHICH IS SCHEDULED TO GO TO TRIAL IN FEDERAL DISTRICT COURT IN MANHATTAN IN OCTOBER 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 SEE RELATED LETTER LETTERS TO THE EDITOR WHY WAS MUD THROWN ON MY BAR MITZVAH WSJ MARCH 22 1994 9402180024 YY94 MM03 9403220015 940224 WINTER OLYMPICS 1994 LILLEHAMMER NORWAY DEAD DUCKS OF THE SKI WORLD KILL CANARD BY TIMOTHY K SMITH STAFF REPORTER OF THE WALL STREET JOURNAL TELLURIDE COLO HISTORY DOESN'T RECORD WHETHER THERE WAS MORE THAN A HINT OF SNARKY FRENCH CONDESCENSION IN JEAN VUARNET'S TONE WHEN HE APOLOGIZED AFTER WINNING THE MEN'S DOWNHILL AT THE 1960 OLYMPICS IN SQUAW VALLEY FOR BREAKING CALIFORNIA'S SPEED LIMIT BUT MORE THAN LIKELY THERE WAS THE CHAMPION'S REMARK ECHOED THE COMMON EUROPEAN PERCEPTION THAT AMERICANS SKI THE WAY THEY DRIVE WITHOUT BRIO THE TRIUMPH OF THE US SKI TEAM AT THESE WINTER GAMES PUTS THE LIE TO HALF OF THAT VICIOUS CANARD THE STUNNING VICTORY BY TOMMY MOE IN THE MEN'S DOWNHILL FOLLOWED BY HIS SILVER IN THE SUPER G DIANN ROFFESTEINROTTER'S GOLD IN THE WOMEN'S SUPER G AND PICABO STREET'S SILVER IN THE WOMEN'S DOWNHILL HAVE BEEN ALL THE MORE GLORIOUS FOR BEING UTTERLY UNEXPECTED IT IS AS CROSSCULTURALLY SHOCKING AS IF YODELERS SUDDENLY APPEARED ON BILLBOARD'S TOP TEN WITH A BULLET BEHIND THIS HAPPY SURPRISE IS ONE OF THE ENDURING MYSTERIES OF WINTER SPORTS WHY IS IT THAT US OLYMPIC SKIING VICTORIES COME IN WEIRD SIMULTANEOUS ERUPTIONS OF GENIUS WITH LONG VALLEYS OF DESPOND IN BETWEEN IT HAPPENED FOR THE FIRST TIME IN THE SLALOM EVENT AT THE INNSBRUCK GAMES IN 1964 WHEN BILLY KIDD WON THE SILVER AND JIMMY HUEGA WON THE BRONZE THE FIRST OLYMPIC ALPINE MEDALS WON BY AMERICAN MEN TWENTY YEARS PASSED WITHOUT ANOTHER MEDAL FOR THE MEN'S TEAM AND THEN AT SARAJEVO BILL JOHNSON CAME FROM NOWHERE TO WIN THE DOWNHILL WHILE THE MAHRE TWINS TOOK GOLD AND SILVER IN THE SLALOM TEN YEARS LATER IT IS HAPPENING AGAIN GRANTED THE AMERICAN WOMEN HAVE BEEN SLIGHTLY MORE CONSISTENT THAN THE MEN BUT OVERALL ON THE WORLD CUP CIRCUIT AS IN THE OLYMPICS ALPINE SKIING HAS SIMPLY BEEN OWNED BY EUROPEANS THIS IS MORE PUZZLING THAN THE SIMILARLY EPISODIC US EXPERIENCE IN OLYMPIC HOCKEY WHICH IS SIMPLY RIGGED OLYMPIC RINKS ARE 15 FEET WIDER THAN US RINKS LEAVING OUR PLAYERS SPATIALLY DISORIENTED ALPINE SKIING MAY HAVE BEEN INVENTED IN THE ALPS BUT ITS BASIC INGREDIENTS TALL MOUNTAINS YOUNG ATHLETES GORETEX ARE AMERICAN BIRTHRIGHTS AND WITH ITS IMPLICIT PROMISE OF PHYSICAL HARM ALPINE SKIING MAKES FOR GREAT TELEVISION AND THEREFORE ONE WOULD THINK LOTS OF ENDORSEMENT MONEY ONE OF OUR IMPORTANT CULTURAL INSTITUTIONS THE INSTANT REPLAY WAS DERIVED FROM ALPINE SKIING AFTER OFFICIALS AT THE SQUAW VALLEY GAMES ASKED CBSTV TO REVIEW A SLALOM RACE TO SEE WHETHER A SKIER HAD MISSED A GATE BUT SOMEHOW THE US RARELY FIELDS STRONG TEAMS WITH DEPTH DRAWN FROM THE HUGE AMERICAN SKIING POPULATION RATHER IT PERIODICALLY SURPRISES THE WORLD AND ITSELF WITH QUIXOTIC SQUADS LIKE THE MOE BETTER DOWNHILLERS THAT SUDDENLY CATCH FIRE THE US SKIING ESTABLISHMENT HAS A FEW READY EXPLANATIONS FOR THE PERENNIALLY LOW EXPECTATIONS THE ALPINE SKIING CIRCUIT IS CONDUCTED MOSTLY IN WESTERN EUROPE EXPERTS POINT OUT CONFERRING A BIG ADVANTAGE ON THE LOCAL TEAMS WHOSE MEMBERS GO HOME BETWEEN EVENTS FOR HOMECOOKED GNOCCHI OUR ATHLETES BY CONTRAST LIVE IN EUROPEAN HOTELS EATING FOREIGN GNOCCHI IT IS ALSO SAID THAT IN EUROPE SKIING IS A SPORT FOR EVERYONE INCLUDING POOR KIDS FOR WHOM SKI RACING MAY BE LIFE'S ONLY CHANCE AT WEALTH AND FAME AMERICAN SKIERS TEND TO BE CHILDREN OF THE UPPERMIDDLE CLASS WHO HAVE MANY OPTIONS AND ARE PERHAPS LESS WILLING TO RISK IT ALL IN THE DOWNHILL THESE OBSERVATIONS ARE UNDOUBTEDLY TO THE POINT AND YET THEY DON'T SEEM TO TELL THE WHOLE STORY SURE AWAY GAMES ARE TOUGH BUT SUCH IS THE FECUNDITY OF US SPORTING CULTURE THAT AMERICANS HAVE TRIUMPHED IN FAR MORE ALIEN PURSUITS SUMO WRESTLING ANYONE BESIDES WHO SAYS CHILDREN OF THE UPPERMIDDLE CLASS AREN'T AS CRAZY AS ANYONE ELSE THE CURRENT WOMEN'S WORLD CHAMPION IN EXTREME SKIING WHICH IS TO THE DOWNHILL AS THE DOWNHILL IS TO BOCCE IS THE AMERICAN DAUGHTER OF AN INVESTMENT BANKER AN INVESTIGATIVE REPORTING TRIP TO THIS REMOTE VILLAGE HIGH IN THE ROCKY MOUNTAINS SUGGESTS ADDITIONAL CULTURAL FACTORS AT WORK AT 815 ON A SUNNY MORNING IN THE LIFT LINE AT THE BOTTOM OF THE HILL A DASHING LOCAL BUSINESSMAN SIGHS CONTENTEDLY AND MUSES JUST A COUPLE OF YEARS AGO RIGHT NOW EVERYBODY HERE WOULD HAVE BEEN CUTTING UP HITS OF BLOTTER ACID THE SLOPES HERE ARE DUSTED WITH NEW POWDER BUT UNDERNEATH THEY ARE ASSIDUOUSLY GROOMED WHICH POINTS TO ANOTHER ISSUE THE TERRAIN THAT EUROPEANS LEARN TO SKI ON IS FAR WILDER THAN WHAT AMERICANS ARE USED TO ESPECIALLY SINCE JAMES C SUNDAY A BEGINNING SKIER AT STRATTON MOUNTAIN IN VERMONT CAUGHT HIS SKI IN A BUSH FELL DOWN AND HIT HIS HEAD ON A ROCK IN 1974 HE SUED AND COLLECTED 15 MILLION PROMPTING SKI RESORTS ACROSS THE COUNTRY TO SMOOTH OUT TRAILS RAISE TICKET PRICES TO COVER LIABILITY INSURANCE AND HIRE GUARDS TO POLICE THE SLOPES AND EJECT PEOPLE ACTING RECKLESSLY PEOPLE HAVE TOLD ME THAT THE BIGGEST SHOCK OF THEIR COMPETITIVE SKIING LIVES WAS WHEN THEY GOT TO EUROPE AND SAW THE CONDITIONS THAT THEY WERE ASKED TO SKI ON SAYS A PERSON CLOSE TO THE US SKIING ESTABLISHMENT ASKING TO REMAIN ANONYMOUS AND ON AN INVESTIGATIVE REPORTING TRIP UP THE CHAIRLIFT HEINZ ROSCH A SWISS NATIVE WHO TEACHES SKIING HERE POINTS TO WHAT MAY BE THE MOST BASIC ISSUE OF ALL IN AUSTRIA IN SWITZERLAND THERE IS A LOT OF GLORY IN BEING A SKI CHAMPION BUT NOT HERE AFTER ALL MR ROSCH AND MANY OTHERS SAY A YOUNG ATHLETE NEEDS A HERO AND IT IS TOUGH ON THE KIDS WHEN SO FEW OF THE GODS WHO SKI OLYMPUS ARE THEIR COUNTRYMEN BUT TOMMY MOE AND HIS HAPPY BAND HAVE FIXED THAT SEE RELATED LETTER LETTERS TO THE EDITOR REMEMBERING A DAY OF OLYMPIC TRIUMPH WSJ MARCH 22 1994 9402240025 YY94 MM03 9403210179 940321 WHAT'S NEWS BUSINESS AND FINANCE A GLOBAL SATELLITE COMMUNICATIONS SYSTEM IS PLANNED BY WILLIAM GATES AND CRAIG MCCAW WHO WILL SEEK TO RAISE CAPITAL AND ATTRACT DOZENS OF PARTNERS TO BUILD THE 9 BILLION SYSTEM THE SYSTEM WOULD INVOLVE HUNDREDS OF SMALL SATELLITES CIRCLING THE EARTH IN A LOW ORBIT OFFERING A BROAD ARRAY OF INTERACTIVE VOICE DATA AND VIDEO SERVICES AT PRICES SIMILAR TO CONVENTIONAL WIRED SERVICES THE PLAN IS EXPECTED TO BE DISCLOSED TODAY GE CAPITAL ASKED KEMPER FOR A LIST OF ITS SHAREHOLDERS SETTING THE STAGE FOR WHAT COULD BE A LENGTHY BATTLE FOR CONTROL OF KEMPER THE REQUEST CAME IN RESPONSE TO KEMPER'S REJECTION OF GE'S 22 BILLION BID TO BUY THE FIRM CLINTON'S WELFAREREFORM WORKING GROUP WILL RECOMMEND A GAMBLING TAX AS PART OF A PROPOSAL TO THE PRESIDENT AT A CABINET MEETING TOMORROW THE 4 EXCISE TAX ON NET GAMBLING REVENUES EXCEPT STATE LOTTERIES IS EXPECTED TO RAISE 4 BILLION IN FIVE YEARS THE BOND MARKET FACES A MAJOR TEST THIS WEEK AS THE FED'S POLICYMAKING ARM MEETS MANY EXPECT THE FED TO TIGHTEN CREDIT AGAIN THE BENCHMARK 30YEAR BOND FELL NEARLY 7/8 POINT FRIDAY ITS YIELD ROSE TO 690 MAINLY IN REACTION TO NEWS OF A MEETING BETWEEN FED CHAIRMAN GREENSPAN AND CLINTON AIDES CALLED THE MEETING ROUTINE THE DOW JONES INDUSTRIALS SURGED 3051 TO 389565 IN LATE TRADING AMID VERY HEAVY VOLUME TIED TO QUARTERLY EXPIRATIONS OF FUTURES AND OPTIONS MACY'S EFFORTS TO REMAIN INDEPENDENT COULD BE THREATENED BY A RIFT BETWEEN LAURENCE TISCH AND OTHER MEMBERS OF THE BOARD PEOPLE FAMILIAR WITH THE BOARD'S DISCUSSIONS SAID AT ISSUE IS THE VALUATION MACY INTENDS TO PLACE ON ITSELF WHICH WILL BE CRITICAL IN DETERMINING WHO ENDS UP WITH CONTROL FORD RECEIVED TWO BIDS FOR ITS UNPROFITABLE FIRST NATIONWIDE FINANCIAL THRIFT UNIT EACH ESTIMATED AT ABOUT 1 BILLION PEOPLE CLOSE TO THE OFFERS SAID JAPANESE COMPUTERCHIP IMPORTS ROSE EASING THE US TRADE BATTLE WITH JAPAN SOMEWHAT BUT NEITHER SIDE IS READY FOR A TRUCE AS THE US AWAITS TOKYO'S MARKETOPENING INITIATIVES UAL SAID IT PLANS TO WITHHOLD PROMISED SEVERANCE PAYMENTS TO SOME MEMBERS OF ITS MACHINISTS UNION IN AN EFFORT TO STEP UP PRESSURE TO FORCE A CLOSING OF ITS 5 BILLION BUYOUT ACCORD SEARS PLANS TO LAUNCH A TOY CATALOG THIS YEAR TAKING ANOTHER STEP TO RESTART PART OF ITS FAILED CATALOG UNIT PACIFIC BELL IS EXPECTED TO UNVEIL PLANS TODAY FOR A TEST OF A SERVICE THAT WILL TRANSMIT DIGITIZED MOVIES DIRECTLY TO A FEW NEIGHBORHOOD THEATERS SONY PLANS TO LAUNCH A MULTIMILLIONDOLLAR CAMPAIGN NEXT MONTH AIMED AT BOOSTING SALES OF ITS NEWLY REDESIGNED MINIDISC PLAYER WALMART SIGNED AN AGREEMENT WITH MICHIGAN TO NOT MAKE MISLEADING PRICE COMPARISONS IN ITS WALMART AND SAM'S CLUB STORES IN THE STATE THE AGREEMENT STEMS FROM AN INQUIRY AFTER COMPLAINTS FROM KMART DAYTON HUDSON'S TARGET STORES AND MEIJER MODAMI SERVICES' BOARD DISMISSED ITS CHAIRMAN AND CHIEF EXECUTIVE ALLEGING THAT HE HAD IMPROPER FINANCIAL TIES TO A SUPPLIER OF THE FOOD CONCERN AN INVESTIGATION ALSO FOUND THAT 13 MILLION OF COMPANY FUNDS IN 1992 WENT INTO FLORIDA BANK ACCOUNTS CONNECTED TO THE CHAIRMAN AND TO THE SUPPLIER CBS SPORTS PRESIDENT NEAL PILSON STEPPED ASIDE AMID A SHARP SCALING BACK OF THE UNIT AFTER LOSING MAJOR BASEBALL AND FOOTBALL RIGHTS CBS HASN'T YET NAMED A SUCCESSOR BUT ONE CANDIDATE IS JOSEPH ABRUZZESE CBS'S SENIOR VICE PRESIDENT OF SALES IBERIA AIR LINES AGREED TO A 500 MILLION BAILOUT PLAN FOR AEROLINEAS ARGENTINAS A MOVE EXPECTED TO RAISE IBERIA'S STAKE IN THE ARGENTINE FLAGSHIP CARRIER TO 85 FROM 30 PEOPLE CLOSE TO THE NEGOTIATIONS SAID BONDS LEHMAN BROTHERS TREASURY INDEX 528721 OFF 5287 COMMODITIES OIL 1488 A BARREL UP SIX CENTS DOW JONES FUTURES INDEX 14349 OFF 056 SPOT INDEX 13185 OFF 043 DOLLAR 10610 YEN UP 025 16965 MARKS UP 00075 9403210178 940321 LEISURE & ARTS TV WHITEWATER BOILS FLOODS MEDIA BY DOROTHY RABINOWITZ IT'S BEEN OBVIOUS FOR SOME TIME NOW AS THE WHITEWATER SAGA ROLLS ON THAT THE SEIZURES OF MORAL INDIGNATION THAT PERIODICALLY AFFLICT VARIOUS QUARTERS OF THE MEDIA ARE BECOMING MORE FREQUENT THESE EPISODES WHICH HAVE ALL THE EARMARKS OF AN OBSESSIVE DISORDER AND WHICH ARE CHARACTERIZED BY REPEATED HANDWRINGING ABOUT EXCESSIVE COVERAGE AND THE LIKE CAN BY NOW BE PREDICTED WELL IN ADVANCE THAT IS THEIR PATTERN OF RECURRENCE SHOWS THAT THESE FITS ALMOST INVARIABLY STRIKE WHENEVER THE NATION'S PRESS IS ONTO A SIGNIFICANT AND SUBSTANTIAL STORY EMINENTLY WORTH THE ATTENTION IT IS GETTING SUCH AS VIOLENT CRIME SUCH AS WHITEWATER WE ARE JUST NOW BEGINNING TO HEAR THE FIRST RUMBLINGS OF AGITATION AND ACCUSATION THAT TELEVISION NEWS IS DEVOTING TOO MUCH TIME TO REPORTING VIOLENT CRIME THIS PLAINT WAS TRIGGERED BY A NEW STUDY FROM THE CENTER FOR MEDIA AND PUBLIC AFFAIRS WHICH HOLDS THAT THE STATISTICS DON'T BEAR OUT THE PICTURE OF A CRIMERIDDEN SOCIETY SEEN SO OFTEN ON THE EVENING NEWS NEITHER THESE STATISTICS NOR THE JOURNALISTS GATHERED RECENTLY ON CNN TO BEMOAN EXCESSIVE CRIME COVERAGE ARE LIKELY TO IMPRESS CITIZENS LIVING IN THE REAL WORLD AS TO WHITEWATER IT BEGAN TO BE CLEAR A WEEK OR SO AGO AS THE WHITEWATER COVERAGE HIT THE SCREEN FULL STRIDE THAT FEVERISH CHARGES OF FEEDING FRENZY AND EXCESS COVERAGE WERE ON THE RISE THAT SUNDAY ON CNN'S INFORMED SOURCES WHERE JOURNALISTS GATHERED TO DISCUSS THIS GRAVE ISSUE MEDIA CRITIC ELLEN HUME DELIVERED AN IMPASSIONED ASSAULT ON THE WHITEWATER COVERAGE SUCH WAS HER EXCITATION THAT MS HUME WHOM THE FEVERS SEEMED TO HAVE CARRIED OFF ALTOGETHER PLUMB NEAR BOUNCED OFF HER CHAIR WHILE DECRYING THE LACK OF RESTRAINT SHOWN BY FELLOW JOURNALISTS STILL NONE OF THE HAIRTEARING ABOUT MEDIA OVERKILL COULD STOP THE SURGE OF WHITEWATER REPORTAGE AND DEBATE THIS IS NOT TO SAY THAT COVERAGE DIDN'T HAVE ITS LIGHTER MOMENTS ON NBC'S MEET THE PRESS THE SAME SUNDAY FORMER NEW YORKER WASHINGTON COLUMNIST ELIZABETH DREW SUCCEEDED IN PUBLICIZING ONE OF THE SHARPER POLITICAL REJOINDERS OF THE WEEK UTTERED BY NEW YORK SEN ALPHONSE D'AMATO THE SENATOR HAD BEEN MOVED TO RESPOND ON THE SENATE FLOOR TO PRESIDENT CLINTON'S RINGING DEFENSE OF THE FIRST LADY I HAVE NEVER KNOWN ANYONE WITH A STRONGER SENSE OF RIGHT AND WRONG THAN HILLARY CLINTON THAT RETORTED SEN D'AMATO WOULD SEEM TO BE THE PROBLEM WHAT HAD HE MEANT BY THAT ASKED THE SLY MS DREW WHO KNEW EXACTLY WHAT HE HAD MEANT MR D'AMATO PROCEEDED AS EXPECTED TO RECITE A LIST BY NO MEANS COMPLETE OF SOME OF THE TAWDRIER CHARACTERS WITH WHOM THE CLINTONS HAVE HAD DEALINGS ONE WAY OR ANOTHER MEANWHILE ADMINISTRATION SPOKESMEN WERE BUSY MAKING APPEARANCES OF THEIR OWN AND OCCASIONALLY SHOWING SOME STRAIN THE NEW PRESIDENTIAL COUNSEL LLOYD CUTLER LOST HIS TEMPER ON THIS WEEK AND PROCEEDED TO LECTURE DAVID BRINKLEY ON JOURNALISTIC ETHICS PRESIDENTIAL COUNSELOR DAVID GERGEN SHOWED UP AT A LOS ANGELES TIMES EDITORIAL BREAKFAST CARRIED ON CSPAN WHERE LOOKING A TRIFLE DAZED AS IS ONLY NATURAL FOR ONE RECENTLY EMERGED FROM HIDING HE SPOKE OF FIRE WALLS AND JUDGMENT CALLS AND GENERALLY LABORED DILIGENTLY TO ANSWER QUESTIONS ON WHITEWATER AND THE CLINTONS OTHER SUPPORTERS OF THE FIRST COUPLE TOOK TO THE AIRWAVES AS WELL NEW YORK TIMES COLUMNIST ANNA QUINDLEN AMONG THEM ON THE SYNDICATED RADIO SHOW IMUS IN THE MORNING MS QUINDLEN ONLY ONE AMONG MANY JOURNALISTIC SAGES WHO HAVE TAKEN TO GIVING THE CLINTON'S MEDIA ADVICE SAID SHE DIDN'T THINK THE FIRST LADY SHOULD HOLD ANY PRESS CONFERENCES SHE DID HOWEVER MAKE THE HIGHMINDED SUGGESTION THAT MRS CLINTON FIND SOME TV SHOW WHERE SHE COULD ANSWER VIEWERS' QUESTIONS THIS STRATEGY THE COLUMNIST EARNESTLY EXPLAINED WOULD HELP THE FIRST LADY CREATE THE ILLUSION THAT PEOPLE WERE PARTAKING IN THE QUESTIONING BOTH THE FIRST LADY AND THE PRESIDENT INDEED HAD SOME NEED OF ADVICE LAST WEEK AS TALK OF WHITE HOUSERELATED SCANDALS REACHED THEIR PEAK WITH THE RESIGNATION OF WEBSTER HUBBELL ON ALL THREE NETWORKS THIS WAS THE STORY THAT LED THE EVENING NEWS GOOD EVENING BEGAN THE NBC NEWS WITH TOM BROKAW THIS MUST BE ONE OF THOSE DAYS WHEN THE CLINTONS WONDER WHETHER IT'S ALL WORTH IT WHITEWATER WASHED ALL OVER THEM AND THEIR CAREFULLY ARRANGED NEW JOBS AGENDA ON CBS DAN RATHER BEGAN WITH WORD THAT ANOTHER HIGHRANKING MEMBER OF THE CLINTON ADMINISTRATION WAS PULLED DOWN TODAY IN THE SPREADING UNDERTOW OF WHITEWATER STRANDED IN DETROIT WHERE THE BIG STORY WAS SUPPOSED TO BE JOBS PETER JENNINGS INSTEAD FOUND HIMSELF ANCHORING AN EXTENDED LEAD ITEM ABOUT MR HUBBELL AND THE ROSE LAW FIRM ALL AGAINST A WONDERFULLY IRRELEVANT BACKGROUND OF CARS ROLLING OFF AN ASSEMBLY LINE WORLD NEWS TONIGHT NONETHELESS REMAINS THE FIRST NETWORK NEWS SHOW TO HAVE PROVIDED A LENGTHY OVERVIEW OF WHITEWATER REPORTED BY JAMES WOOTEN WHICH SERVED NOTICE THAT REPORTAGE ON THIS AFFAIR WASN'T GOING TO GO AWAY ANY TIME SOON ANOTHER REPORT BY ABC'S CYNTHIA MCFADDEN PROVIDED ONE OF THE MORE ELOQUENT TESTAMENTS TO THE CURRENT CONDITION OF THE ONCEPROUD ROSE LAW FIRM THE SETTING WAS A LARGE CHARITY BENEFIT IN LITTLE ROCK WHERE THE CAMERAS CAUGHT THE ROSE TABLE ENTIRELY SURROUNDED BY EMPTY CHAIRS FOR SHEER TOUGHNESS AND COLOR THOUGH NO WHITEWATER REPORTING EXCEEDED THAT OF NBC'S LISA MYERS THE HIGH POINT OF HER TWOPART SERIES AIRED LAST WEEK HAD JAMES MCDOUGAL THE CLINTONS' FORMER BUSINESS PARTNER HOLDING FORTH IN HIS SOFTLY MENACING VOICE AND LOOKING FOR ALL THE WORLD AS THOUGH HE HAD STEPPED OUT OF CITIZEN KANE THE WATCHDOGS OF JOURNALISM HOWL BUT THE WHITEWATER CARAVAN ROLLS ON AWARDS TIME HAS COME ROUND AGAIN THIS TIME WITH THE RABBI BARUCH KORFF CITATION FOR MERITORIOUS SERVICE THIS AWARD PRESENTED TO JOURNALISTS WHO HAVE DISTINGUISHED THEMSELVES BY ZEALOUS AND UNFLAGGING DEVOTION TO A SITTING PRESIDENT IS NAMED FOR THE PROVIDENCE RI RABBI WHO BECAME RICHARD NIXON'S MOST ARDENT CHAMPION EVEN UNTO THE FINAL HOURS OF HIS PRESIDENCY IT CAN COME AS NO SURPRISE TO HER MANY FANS THAT THE HANDSDOWN WINNER OF THE KORFF AWARD THIS YEAR AND PROBABLY NEXT YEAR IS ELEANOR CLIFT OF THE MCLAUGHLIN GROUP AND NEWSWEEK THE MOST TIRELESS OF THE FIRST COUPLE'S CHEERLEADERS WE COULD CITE IN PARTICULAR THE HEARTWARMING NEWSWEEK INTERVIEW WITH THE FIRST LADY WHEREIN JOURNALIST CLIFT ASSURED MRS CLINTON IN EFFECT THAT INQUIRIES INTO HER WHITEWATER DEALINGS ALL CAME FROM PEOPLE WHO WANTED TO LAUNCH CAREERS WHO WANTED TO BURN WITCHES WHO DIDN'T SHARE MS CLIFT'S OWN THEORY THAT THE FIRST LADY RESISTED MAKING HER RECORDS PUBLIC BECAUSE YOU HAVE A THING ABOUT PRIVACY CONGRATULATIONS ELEANOR NOBODY COULD BE MORE DESERVING 9403210177 940321 LEGAL BEAT JURIES DISPLAY LESS SYMPATHY IN INJURY CLAIMS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL JURIES IN PERSONALINJURY CASES APPEAR TO HAVE HAD A SIGNIFICANT CHANGE OF HEART IN RECENT YEARS THEY HAVE BEEN REJECTING INJURY CLAIMS MORE OFTEN JURY SPECIALISTS SAY THE POWERFUL AND DEEPPOCKETED ADVOCATES OF REFORM HAVE SPREAD THEIR MESSAGE SO SUCCESSFULLY IN THE MEDIA THAT JURIES HAVE CHANGED THEIR BEHAVIOR THE PUBLICITY OF THE BUSINESS AND INSURANCE GROUPS HAS PLAYED A MAJOR ROLE IN SHIFTING BOTH PUBLIC AND JUDGE OPINION SAYS THEODORE EISENBERG A PROFESSOR AT CORNELL LAW SCHOOL EITHER THERE WAS A LIABILITY CRISIS OR PEOPLE GOT SOLD ONE AND ATTITUDES CHANGED IN A WAY THAT LED TO MORE VICTORIES FOR DEFENDANTS TAKE THE 1992 CASE FILED AGAINST FORD MOTOR CO BY A WOMAN WHO WAS INJURED IN A BRONCO II SEVERAL JURORS REMARKED DURING THE DISCUSSIONS THAT PEOPLE ARE TOO WILLING TO SUE OVER THE SLIGHTEST LITTLE THING EVEN THOUGH IT MIGHT BE THEIR FAULT SAYS PAUL GILLIHAN A MEMBER OF THE JURY THEY EVEN MADE COMMENTS THAT THIS IS WHY THINGS COST SO MUCH BECAUSE PEOPLE SUE AND COMPANIES HAVE TO RAISE THEIR PRICES ADDS MR GILLIHAN AN ACCOUNTING SUPERVISOR ULTIMATELY THE BATESVILLE ARK JURY RULED AGAINST THE WOMAN ALTHOUGH MANY JURORS BELIEVED THAT FORD HAD ACTED NEGLIGENTLY IN SOME WAYS WE ALL AGREED THAT THE GIRL PROBABLY WAS DRIVING TOO FAST MR GILLIHAN SAYS ABOUT 75 OF JURORS INTERVIEWED BY THE CONSULTING FIRM FTI JURY ANALYST GROUP SAY THEY BELIEVE JURY AWARDS ARE TOO LARGE AND MORE THAN TWOTHIRDS OF THE JURORS SAY THERE ARE TOO MANY LAWSUITS ACCORDING TO ARTHUR PATTERSON DIRECTOR OF THE ANNAPOLIS MDBASED FIRM WATCHDOG GROUPS DECRY THE SHIFT THE ENEMIES OF THE CIVIL JUSTICE SYSTEM ARE THE ENTIRE MEDICAL ESTABLISHMENT AND THE ENTIRE BUSINESS AND CORPORATE ESTABLISHMENT SAYS PAMELA GILBERT A LOBBYIST FOR PUBLIC CITIZEN A CONSUMER GROUP IN WASHINGTON THEY HAVE VIRTUALLY UNLIMITED FUNDS IN RECENT YEARS BUSINESS COALITIONS HAVE SUPPLEMENTED THEIR LEGISLATIVE LOBBYING WITH A VARIETY OF TACTICS AIMED AT ORDINARY PEOPLE SUCH AS NEWSPAPER ADVERTISEMENTS AND BILLBOARDS DECRYING LAWSUIT ABUSE ALTHOUGH SUCH PUBLIC RELATIONS STRATEGIES APPEAR TO BE IMPROVING THEIR RECORD BUSINESS GROUPS SAY THEY HAVE NO INTENTION OF DROPPING THEIR LEGISLATIVE EFFORTS FOR ONE THING THEY SAY THAT DAMAGE AWARDS ARE STILL TOO HIGH AND THEY ARE QUICK TO DISCOUNT THEIR SUCCESS ARGUING THAT THE PRODEFENDANT TREND DOESN'T REFLECT A CHANGE IN JURORS' ATTITUDES AS MUCH AS A REFINEMENT OF DEFENSE STRATEGIES VICTOR SCHWARTZ A WASHINGTON LAWYER AND LOBBYIST FOR THE DEFENSE BAR SAYS THE DECLINE IN JURY AWARDS IS PARTLY THE RESULT OF ESCALATING LEGAL COSTS COMPANIES ARE SETTLING MORE CASES AND GOING TO FULLSCALE WAR ONLY ON THE CASES WHERE WE ARE CONVINCED THAT WE CAN WIN HE SAYS BUSINESSES AREN'T THE ONLY DEFENDANTS HAVING GREATER SUCCESS WITH JURIES ACCORDING TO THE JURY VERDICT STUDY IT FOUND THAT DOCTORS AND HOSPITALS ARE PREVAILING MORE OFTEN IN JURY TRIALS OF MEDICALMALPRACTICE CASES IN 1987 PATIENTS WON 42 OF MALPRACTICE CASES AGAINST DOCTORS AND 59 OF CASES AGAINST HOSPITALS BY 1992 THOSE NUMBERS DECLINED TO 25 AND 50 RESPECTIVELY WHILE JURY SPECIALISTS CITE CLEAR EVIDENCE THAT PUBLICITY ABOUT THE SOCALLED LITIGATION EXPLOSION HAS AFFECTED JURORS' OPINIONS THOSE BELIEFS DON'T NECESSARILY AFFECT JURORS' VOTES IN ANY PARTICULAR CASE OF COURSE CONSIDER THE EXPERIENCE OF DON KEENAN AN ATLANTA PLAINTIFFS' LAWYER WHO RECENTLY WON A 25 MILLION JURY VERDICT IN A MALPRACTICE SUIT AGAINST AN OBSTETRICIAN DURING JURY SELECTION MR KEENAN SAYS ONE MAN WHO WAS CHOSEN AS A JUROR SHOUTED AT HIM ACCUSING LAWYERS OF BRINGING TOO MANY SUCH LAWSUITS IF THIS KEEPS UP YOU LAWYERS WILL HAVE TO DELIVER BABIES THE MAN SAID THREE WEEKS LATER THE MAN VOTED ALONG WITH THE REST OF THE JURY IN FAVOR OF THE PLAINTIFF IN THE CASE HE WAS CONVINCED THAT THIS CASE WAS THE EXCEPTION TO THE RULE SAYS MR KEENAN WHO INTERVIEWED THE JURORS AFTER THE TRIAL ABOUT THE REASONS FOR THEIR DECISIONS THE RESULTS OF THE SURVEY SEEM LIKELY TO INFLUENCE THE DEBATE OVER PENDING PROPOSALS TO ALTER STATE AND FEDERAL LIABILITY LAWS MANY BUSINESS AND INSURANCE GROUPS HAVE LOBBIED FOR CHANGE BY ARGUING THAT JURIES ARE BIASED IN FAVOR OF PLAINTIFFS AND AGAINST DOCTORS HOSPITALS AND BUSINESSES SOME STATES HAVE PASSED LEGISLATION THAT MAKES IT MORE DIFFICULT FOR JURIES TO SIDE WITH THE PLAINTIFF THEY HAVE FOR EXAMPLE RAISED THE STANDARD OF PROOF IN PRODUCTLIABILITY CASES REQUIRING JURIES TO RULE AGAINST PLAINTIFFS UNLESS THEY CAN PROVE THAT THERE WAS A REASONABLE ALTERNATIVE TO THE WAY THE PRODUCT AT ISSUE WAS MANUFACTURED A 20 MILLION JURY VERDICT WAS THROWN OUT ON APPEAL IN A CASE ALLEGING THAT THE DRUG BENDECTIN CAUSED BIRTH DEFECTS THE TEXAS JURY IN 1991 FOUND THAT USE OF THE ANTINAUSEA PRESCRIPTION DRUG BY A PREGNANT WOMAN CAUSED HER BABY TO BE BORN WITH NO FINGERS ON ONE HAND THE INTERMEDIATE STATE APPEALS COURT IN CORPUS CHRISTI HOWEVER FOUND THAT THE EVIDENCE AT TRIAL WASN'T SUFFICIENT TO BACK THE VERDICT BENDECTIN WHICH WAS TAKEN OFF THE MARKET IN 1983 HAS BEEN THE TARGET OF SUITS FILED BY AT LEAST 1800 WOMEN WHO TOOK THE DRUG DURING PREGNANCY OTHER APPEALS COURTS HAVE RULED SIMILARLY TO THE TEXAS COURT IN CASES AGAINST BENDECTIN'S FORMER MAKER MERRELL DOW PHARMACEUTICALS INC A UNIT OF CINCINNATIBASED MARION MERRELL DOW INC IN THE 36 CASES IN WHICH A JUDGMENT HAS BEEN REACHED ONLY ONE CURRENTLY STANDS AGAINST THE COMPANY SAID W GLENN FORRESTER CORPORATE COUNSEL FOR MARION MERRELL DOW THAT JUDGMENT INVOLVING A CASE IN THE WASHINGTON DC AREA IS ON APPEAL THE 36 CASES INCLUDE ONE IN WHICH MORE THAN 1000 FEDERAL LAWSUITS WERE CONSOLIDATED AND DISMISSED BOB HILLIARD A CORPUS CHRISTI ATTORNEY FOR THE FAMILY WHO BROUGHT THE SUIT SAID THE DECISION WILL BE APPEALED TO THE STATE SUPREME COURT BARRY NACE A WASHINGTON ATTORNEY WHO ALSO REPRESENTED THE FAMILY SAID THE COURT HAD UNFAIRLY CRITICIZED THE PLAINTIFFS' SCIENTIFIC WITNESSES HE SAID THE WITNESSES CALLED BY THE FAMILY TESTIFIED THAT WITHIN A REASONABLE DEGREE OF CERTAINTY BASED UPON THE DATA THAT ARE THERE BENDECTIN DID CAUSE THIS DEFECT MR NACE FAULTED THE COURT FOR IGNORING ISSUES OF CREDIBILITY THAT HE SAID WERE RAISED ABOUT THE COMPANY'S OWN WITNESSES MR FORRESTER SAID THE COMPANY BELIEVES THE DRUG IS SAFE THE COMPANY VOLUNTARILY CEASED MARKETING THE PRODUCT IN 1983 BECAUSE THERE WAS SO MUCH CONTROVERSY HE SAID ABOUT 25 BENDECTIN LAWSUITS ARE PENDING HE SAID MERRELL DOW PHARMACEUTICALS INC VS HAVNER COURT OF APPEALS THIRTEENTH DISTRICT OF TEXAS CORPUS CHRISTI NO WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9403210176 940321 FOREIGN EXCHANGE CANADIAN DOLLAR IS LIKELY TO DECLINE OVER THE LONG TERM ON FISCAL WORRIES BY DIANE DIMOND AND ANDREW WILLIS SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE CANADIAN DOLLAR HAS FEW FANS THESE DAYS IT HAS SUNK TO A SEVENYEAR LOW AGAINST THE US DOLLAR AND SOME ANALYSTS SAY IT HAS FURTHER TO FALL OTHERS ARGUE THAT THE DECLINE HAS BEEN SO STEEP AND STEADY THAT A POWERFUL REBOUND IS DUE IN A MATTER OF WEEKS BUT EVEN THOSE WHO EXPECT TO WIN SHORTTERM TRADING GAINS ON A TURNAROUND ACKNOWLEDGE THAT OVER THE LONG TERM FISCAL WORRIES AND POLITICAL UNCERTAINTY WILL DRAG THE CANADIAN CURRENCY INTO LOWER TRADING RANGES LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT C13698 UP FROM C13617 AT THE END OF THE PREVIOUS WEEK THE DOLLAR ALSO TRADED AT 16965 MARKS AND 10610 YEN COMPARED WITH 16825 MARKS AND 105 YEN A WEEK EARLIER THE DOLLAR IS SEEN HEADING HIGHER AGAINST BOTH CURRENCIES EVENTUALLY BUT IT HAS BEEN HELD BACK BY THE SLOW PACE OF MONETARYPOLICY CHANGE IN THE US AND GERMANY AND BY DOLLARSELLING FROM JAPANESE CORPORATIONS FINANCIAL MARKETS IN TOKYO WERE CLOSED MONDAY FOR A NATIONAL HOLIDAY THE RELENTLESSNESS OF THE CANADIAN DOLLAR SELLING PUZZLES MARKET PLAYERS THE CURRENCY'S TROUBLES AREN'T NEW NO FRESH CRISIS LOOMS ANALYSTS IN THE DUEFORAREBOUND CAMP TAKE THAT AS EVIDENCE THAT DEALERS HAVE NOW DISCOUNTED ALL BAD NEWS FOR THE CURRENCY THE BEARISH FUNDAMENTALS ARE PRICED IN SAYS JERRY CORNILLE MARKETING DIRECTOR FOR CM&M FUTURES INC A SUBSIDIARY OF HSBC HOLDINGS LTD THE MARKET IS OVERSOLD IT'S RIPE FOR A CORRECTION IF NOT A REVERSAL HE SEES THE EXCHANGE RATE REACHING C13450 BEFORE THE CANADIAN DOLLAR RESUMES ITS DECLINE SOME DEALERS SAY SELLING VOLUME IS ALREADY THINNING AS PARTICIPANTS BRACE FOR THAT CORRECTION EVERYBODY HAS SOLD CANADA SAYS DAVID SOLIN FOREIGNEXCHANGE MANAGER AT TORONTO DOMINION BANK IN NEW YORK ALL YOU NEED IS A LITTLE GOOD NEWS AND EVERYONE HAS TO RUN TO BUY IT BACK BUT CANADA BEARS CONTEND THAT THERE'S NOTHING ON THE HORIZON TO TRIGGER A CORRECTION WORTH THE NAME PEOPLE SAID C133 WAS A GOOD PLACE TO BUY SAYS CHRISTOPHER HAN CURRENCY OPTIONS TRADER AT NATIONAL WESTMINSTER MARKETS A UNIT OF NATIONAL WESTMINSTER BANK PLC BASED ON WHAT CHEAP OPTIONS PRICES SUGGEST THAT MARKET PLAYERS GENERALLY AREN'T LOOKING FOR WILD PRICE SWINGS BUT INSTEAD EXPECT A STEADY DECLINE MR HAN NOTES THE CURRENCY'S GOING TO GET TRASHED HE SAYS HE AND OTHER BEARISH DEALERS SAY C140 IS A LIKELY TARGET NARROWING SPREADS BETWEEN US AND CANADIAN SHORTTERM INTEREST RATES WEIGH MOST HEAVILY ON THE CURRENCY FRIDAY THE 90DAY TREASURY BILL SPREAD WAS 65 BASIS POINTS WIDER THAN 31 LAST WEEK BUT SIGNIFICANTLY NARROWER THAN THE 1993 AVERAGE OF 127 A BASIS POINT IS 1/100TH OF A PERCENTAGE POINT CANADA'S ECONOMIC RECOVERY HAS TURNED ANEMIC PRECLUDING MONETARY TIGHTENING AND DEPRIVING CURRENCY PLAYERS OF THEIR USUAL MOTIVE TO BUY CANADIAN THE PICKUP IN YIELD OVER US RATES THE ECONOMY DIDN'T STRENGTHEN AS MUCH AS WE THOUGHT IT WOULD SAYS ANITA LAURIA ECONOMIST AT SALOMON BROTHERS INC THAT CLEARLY MEANS THAT CANADA WON'T BE ABLE TO FOLLOW US TIGHTENING AT LEAST NOT WILLINGLY AND THAT WILL PUT DOWNWARD PRESSURE ON THE CURRENCY FOR THE NEXT SEVERAL MONTHS TRADERS ALSO DOUBT THE LIBERAL GOVERNMENT'S STOMACH FOR CUTTING SPENDING ON SOCIAL WELFARE PROGRAMS ECONOMISTS CHARACTERIZE THE FEDERAL BUDGET ANNOUNCED IN FEBRUARY AS A CAUTIOUS ONE THAT SHOULD CONTROL THE GROWTH OF DEBT BUT THEY AGREE THAT FURTHER CUTS WILL BE NEEDED DOWN THE ROAD THERE WILL HAVE TO BE MORE SPENDING CUTS AND PROGRAM ADJUSTMENTS BY THE END OF THE DECADE SAYS CARL WEINBERG CHIEF ECONOMIST AT HIGH FREQUENCY ECONOMICS A CONSULTING COMPANY THE PROSPECT OF A QUEBEC SECESSION IS ALSO KEEPING CURRENCY PLAYERS ON EDGE PROVINCIAL ELECTIONS MUST BE CALLED BEFORE NOVEMBER WOOD GUNDY INC CHIEF ECONOMIST JEFFREY RUBIN SEES VOTERS GOING TO THE POLLS ON JUNE 13 MEANING THE CALL WOULD GO OUT IN LATE APRIL IF THE SEPARATIST PARTI QUEBECOIS WINS IT IS EXPECTED TO CALL FOR A REFERENDUM ON SEPARATION 9403210175 940321 FINANCING BUSINESS SIERRA ONLINE INC SIERRA ONLINE INC BELLEVUE WASH SAID IT PLANS TO RAISE 50 MILLION THROUGH THE SALE OF CONVERTIBLE SUBORDINATED NOTES IN A PRIVATE PLACEMENT TO INSTITUTIONAL INVESTORS THE SOFTWARE PUBLISHER NOTED THAT IT EXPECTS TO REPORT AN OPERATING LOSS FOR ITS FISCAL FOURTH QUARTER ENDING MARCH 31 ANALYSTS EXPECT THE COMPANY TO POST A LOSS OF BETWEEN 14 CENTS AND 39 CENTS A SHARE A YEAR EARLIER SIERRA HAD A DEFICIT OF 62 MILLION OR 86 CENTS A SHARE ON SALES OF 119 MILLION 9403210174 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT BEHIND THE HYPE DOES ANYBODY SPEAK ENGLISH NOT IN THE MULTIMEDIA WORLD SO YOU MAY AS WELL LEARN THE LANGUAGE BY LESLIE CAULEY THERE'S NO ESCAPE ATV CODEC EDUTAINMENT HDTV SYNTHESPIAN YOU WANT TO SCREAM YOU WANT TO TELL THEM ALL TO GO AWAY BUT YOU CAN'T IT'S THE FUTURE AND YOU MAY AS WELL GET USED TO IT SO TO EASE YOUR WAY HERE'S A LIST OF WORDS THAT ARE BOUND TO COME UP MEMORIZE THEM YOU'LL BE PART OF THE INCROWD ADVANCED TELEVISION ATV A CATCHALL TERM FOR HIGHRESOLUTION LARGESCREEN TV SETS HIGHDEFINITION TELEVISION IS ONE FORM WIDESCREEN STANDARD TV SETS ARE ANOTHER SEE HIGHDEFINITION TELEVISION AIR MOUSE A SOPHISTICATED REMOTECONTROL DEVICE THAT RATHER THAN SIMPLY ZAPPING TO A NEW CHANNEL WILL LET A VIEWER POINT TO A PARTICULAR SPOT ON THE TV SCREEN AND LOG AN ORDER OR REQUEST FOR MORE INFORMATION IT MAY NOT BE READY FOR SEVERAL YEARS ANALOG AN ALLBUTOBSOLETE MEANS OF STORING OR TRANSMITTING INFORMATION BY TREATING IT AS A CONTINUOUS WAVE FORM THE PROBLEM WITH ANALOG IS THAT THE WAVE TENDS TO DEGRADE ONCE IT LEAVES THE ORIGINATION POINT THAT'S WHY SOME CELLULAR PHONE CALLS SOUND SO FAINT ON THE RECEIVING END DIGITAL THE EMERGING ALTERNATIVE TO ANALOG DOESN'T HAVE THAT PROBLEM SEE DIGITAL THE BEAST ANTHING THAT'S TOTALLY COOL AS IN VIDEOONDEMAND IS THE BEAST BLENDO THE COMBINATION OF DIFFERENT MEDIA FROM DIFFERENT SOURCESCOMPUTER GRAPHICS SCANNED IMAGES ANIMATION VIDEO AKIN TO MULTIMEDIA BUT WITH A MORE KITCHENSINK APPROACH BOX AS IN SETTOP BOX A REFERENCE TO THE DEVICE THAT SITS ATOP A TV SET TO LINK VIEWERS TO CABLE SYSTEMS AND IN THE FUTURE TO ALL MANNER OF INTERACTIVE VIDEO SERVICES CODEC SHORT FOR CODER/DECODER IT REFERS TO THE COMPRESSION EQUIPMENT USED IN VIDEO CONFERENCING AND OTHER DATACOMPRESSED DELIVERY SYSTEMS CONTENT THE MULTIMEDIA TERM FOR ANYTHING THAT CAN HELP FILL THOSE 500 CHANNELS THAT CABLE OPERATORS KEEP THREATENING TO DELIVER CASABLANCA USED TO BE A HOLLYWOOD CLASSIC I LOVE LUCY WAS VINTAGE TELEVISION NOW BOTH ARE CONTENT CONVERGENCE THE BLURRING OF LINES BETWEEN PUBLISHING TELECOMMUNICATIONS CONSUMER ELECTRONICS COMPUTERS AND ENTERTAINMENT DUE TO ADVANCES IN TECHNOLOGY IT'S THE REASON SOME BABY BELL EXECUTIVES ARE DOING THE HOLLYWOOD AIR KISS AND CALLING EACH OTHER BABE CYBERPORK GOVERNMENT MONEY THAT FLOWS TO WELLCONNECTED INFORMATIONHIGHWAY CONTRACTORS NOT TO BE CONFUSED WITH REGULAR GOVERNMENT PORK WHICH TENDS TO GET DOLED OUT FOR DECIDEDLY LOWTECH PROJECTS SUCH AS REAL HIGHWAYS DANCE PARTNER TERM USED BY SOME TOP BABY BELL EXECUTIVES TO DESCRIBE POTENTIAL CABLE PARTNERS A FEW OF THE REGIONAL BELL COMPANIES WILL PROBABLY WIND UP AS WALLFLOWERS BECAUSE MANY OF THE MOST ATTRACTIVE PARTNERS ARE ALREADY TAKEN DARK FIBER THE PORTION OF FIBEROPTIC CABLING THAT ISN'T BEING USED YET THE AMOUNT OF DATA BEAMED OVER FIBEROPTIC NETWORKS IS RISING EXPONENTIALLY EVERY YEAR YET ONLY 01 OF FIBER CAPACITY IS IN USE REGIONAL BELL COMPANIES AND OTHER PROVIDERS LAY TONS OF MORE FIBER EVERY YEAR DIGITAL A MEANS OF STORING AND TRANSMITTING DATA BY REDUCING IT TO ELECTRONIC SIGNALS IN A SERIES OF DIGITS ONES AND ZEROS AND THEN REASSEMBLING THEM FOR AN EXACT REPRODUCTION ONCE EVERYTHING TRAVELING THE HIGHWAY HAS BEEN DIGITIZED THE VOICES ON A TELEPHONE CALL MUSICAL RECORDINGS FROM A COMPACT DISK VIDEO IMAGES NEWSPAPER LISTINGS IT COULD BE INTERCHANGEABLE AND COMPATIBLE ONE SNAG THE STANDARDS FOR DIGITIZING HAVEN'T BEEN FINALIZED SEE ANALOG AND MPEG DIGITAL FILM THE ELECTRONIC MANIPULATION OF FILM IMAGES ALADDIN AND JURASSIC PARK ARE AMONG THE MOVIES THAT HAVE USED DIGITAL FILM TECHNIQUES TO SCORE BIG AT THE BOX OFFICE DOGS WATCHING TELEVISION PHRASE THAT DESCRIBES HOW SOME HOLLYWOOD PEOPLE LOOK WHEN THEY HEAR MULTIMEDIA PITCHES FROM TECHNOLOGY EXECUTIVES WHEN DOGS WATCH TELEVISION THEY BARK OR COCK THEIR HEADS BUT YOU NEVER KNOW WHETHER THEY HAVE ANY IDEA WHAT'S GOING ON TECH TYPES SAY THAT THE SAME THING GOES FOR MOVIE BRASS AND THE PRESS FOR THAT MATTER EDUTAINMENT A HYBRID TO DESCRIBE MEDIA PRODUCTS THAT COMBINE EDUCATIONAL AND ENTERTAINMENT COMPONENTS A COUSIN OF INFOTAINMENT THE CROSS BETWEEN INFORMATION AND ENTERTAINMENT THAT TYPICALLY SHOWS UP AS EXTENDED ADVERTISEMENTS ON CABLE TV FLAME TO POST A MESSAGE ON A PUBLIC ELECTRONIC NETWORK THAT IS DESIGNED TO INSULT OR INCITE OTHERS DO ENOUGH FLAMING AND YOU GET A REPUTATION AS A FLAMER SOMEONE WHO LIKES TO AGITATE OTHERS FULLMOTION VIDEO THE STANDARD VIDEO TRANSMISSION OF 30 FRAMES A SECOND ANYTHING LESS THAN FULLMOTION APPEARS JERKY SORT OF LIKE MOST VIDEOCONFERENCING SESSIONS FUTUREPROOF REFERS TO TECHNOLOGY THAT SUPPOSEDLY WON'T BECOME OUTDATED ANYTIME SOON NOTE IN THE FASTMOVING WORLD OF MULTIMEDIA SOON CAN REFER TO VIRTUALLY ANY PERIOD OF TIME FOLLOWING ANNOUNCEMENT OF A NEW PRODUCT OR SERVICE HAND MOUSE A DEVICE THAT ALLOWS THE USER TO BROWSE THROUGH CATALOGS AND THE LIKE THE OLDFASHIONED WAY THUMBING THROUGH THE PAGES BY HAND THE HAND MOUSE IS FROWNED UPON BY PURVEYORS OF MULTIMEDIA WHICH ARE SPENDING BILLIONS IN THE BELIEF THAT PEOPLE REALLY WANT TO BROWSE THROUGH CATALOGS THROUGH THEIR SOONTOBE INTERACTIVE TELEVISION HEAD END AN ORIGINATION POINT ON A NETWORK IN CABLE PARLANCE IT REFERS TO THE DISTRIBUTION CENTER FROM WHICH CABLE LINES FAN OUT HIGHDEFINITION TELEVISION HDTV HIGHRESOLUTION TV THAT OFFERS PICTURE QUALITY ROUGHLY TWO TO FOUR TIMES THAT OF STANDARD TELEVISION THE US LEAPFROGGING JAPAN HAS EMBRACED FULLY DIGITAL HDTV STANDARDS BUT THE COST OF INSTALLING HDTV COULD RUN 50 BILLION TO 100 BILLION IN ADDITION TO SIMILAR SPENDING FOR INTERACTIVE SERVICES INTERACTIVE REFERS TO A TWOWAY VIEWERCONTROLLED ELECTRONIC PROCESS THAT ALLOWS CONSUMERS TO SELECT AMONG A RANGE OF INFORMATION ENTERTAINMENT EDUCATIONAL AND SHOPPING OPTIONS INTERNET A WEB OF INTERCONNECTED COMPUTER NETWORKS THAT SPRANG FROM A US GOVERNMENT EFFORT TO CONNECT GOVERNMENT AND ACADEMIC SITES IT CURRENTLY LINKS ABOUT 15 MILLION PEOPLE WORLDWIDE WHO USE IT FOR EVERYTHING FROM SERIOUS SCIENTIFIC RESEARCH TO SIMPLE EMAIL MELTOMEDIA A VARIATION ON MULTIMEDIA SOMETIMES CALLED MUCHOMEDIA SEE MULTIMEDIA MOUSE POTATO THE INTERACTIVETV GENERATION'S VERSION OF THE COUCH POTATO MPEG A SET OF TECHNICAL STANDARDS FOR COMPRESSING DIGITAL VIDEO AND AUDIO SET BY THE MOVING PICTURE EXPERTS GROUP ITS FIRST EFFORT MPEG1 IS ALREADY USED TO STORE VIDEO CLIPS ON CDROMS AND MAY BE USED FOR DELIVERING MOVIESONDEMAND COMING SOON MPEG2 THE SEQUEL WHICH OFFERS MUCH HIGHER PICTURE QUALITY AND HAS BEEN PICKED FOR HIGHDEFINITION TV STANDARDSMONGERS ALREADY ARE ENVISIONING MPEG4 COVERING WIRELESS VIDEO TRANSMISSION PROBLEM THESE STANDARDS AREN'T ENTIRELY COMPATIBLE TODAY'S HARDWARE MAY NOT PLAY TOMORROW'S VIDEO MULTIMEDIA THE BLENDING OF DIFFERENT TYPES OF MEDIAAUDIO VIDEO DATAINTO A SINGLE PRODUCT OR SERVICE IN PRACTICE HOWEVER THE TERM IS USED TO REFER TO PRACTICALLY ANYTHING THAT DAZZLES THE SENSES AND HAS MONEYMAKING POTENTIAL FROM DISNEY'S IT'S A SMALL WORLD BOAT RIDE TO BELL ATLANTIC'S VIDEOONDEMAND TESTS IN NORTHERN VIRGINIA SEE VIDEOONDEMAND NAVIGATOR A SOFTWARE PROGRAM THAT ALLOWS PEOPLE TO BROWSE MORE EASILY THROUGH INTERACTIVE SERVICES PROGRAMS AND INFORMATION SEVERAL COMPANIES ARE DEVELOPING NAVIGATORS IN THE HOPES THEIR APPROACHES WILL BECOME THE INDUSTRY'S SINGLE DE FACTO STANDARD NYMROD REFERS TO A PERSON OR GROUP THAT INSISTS ON TURNING EVERYTHING INTO AN ACROMYN SEE ATV CODEC HDTV PIPES CATCHALL TERM FOR THE ACTUAL NETWORK THE FIBEROPTIC LINES COPPER AND COAXIAL CABLING USED TO TRANSMIT PROGRAMMING INTO THE HOMES AND BUSINESSES OF CUSTOMERS REPURPOSE MULTIMEDIA'S VERSION OF RECYCLING IT'S THE CONVERTING OF CONTENT HOLLYWOOD MOVIES TV PROGRAMMING AND SO ON INTO A DIGITAL FORMAT SO IT CAN BE ZAPPED ACROSS THE DIGITAL INFORMATION HIGHWAY ROAD KILL AS IN NOBODY WANTS TO BECOME ROAD KILL ON THE SUPERHIGHWAY IT IS AN UNFLATTERING REFERENCE TO COMPANIES GETTING LEFT BEHIND IN THE MULTIMEDIA GOLD RUSH SERVER A COMPUTERIZED STORAGE SYSTEM USED TO ZAP MOVIES AND OTHER DATA TO CUSTOMERS USING CABLE PHONE LINES OR OTHER NETWORKS MAY INCLUDE DISK AND TAPE STORAGE DEVICES A NETWORK INTERFACE SIGNAL PROCESSING AND COMPRESSION CAPABILITY OPERATING SYSTEM AND FILING SOFTWARE THE FANCY INNARDS FREQUENTLY COME WITH A FANCY PRICE TAG IN THE MILLIONS OF DOLLARS SIGNAL COMPRESSION USING SOFTWARE AND HARDWARE TO SQUEEZE INFORMATION INTO A TINY ELECTRONIC PACKAGE THE IDEA IS TO CONDENSE AS MUCH INFORMATION AS POSSIBLE TO JAM IT DOWN A PIPE LIKE AN ELECTRONIC NERF BALL THE INFORMATION BE IT A MOVIE OR A CONCERT RECORDING SPRINGS BACK TO ITS NORMAL SHAPE WHEN IT IS DECOMPRESSED SOCIOMEDIA USING THE COMPUTER TO RAISE THE CONSCIOUSNESS OF SOCIETY ACCORDING TO WIRED MAGAZINE THE IDEA WAS SUGGESTED BY HYPERMEDIA THEORIST EDWARD BARRETT IN HIS BOOK OF THE SAME NAME SYNTHESPIAN A SYNTHETIC ACTOR CREATED BY 3D COMPUTER ANIMATION THE SYNTHESPIAN HALL OF FAME WOULD NO DOUBT INCLUDE SYNTHESPIAN GREAT MAX HEADROOM TECHNOPOLIS REFERS TO THE SUM TOTAL OF THE TECHNOLOGICAL INFRASTRUCTURE OF SOCIETY NO KIDDING VIDEO DIAL TONE AN OXYMORON THAT REFERS TO THE USE OF THE TELEPHONE SYSTEM AS A VIDEODISTRIBUTION SYSTEM VIDEOONDEMAND A SERVICE THAT OFFERS ANY PROGRAM YOU WANT TO SEE ANYTIME YOU WANT TO SEE IT PERIOD THAT MEANS NO MORE SHUFFLING AROUND THE VIDEO STORE PORING OVER LEFTOVERS AND NO MORE FIDDLING WITH THE VCR TRYING TO FIGURE OUT HOW TO RECORD A SHOW THAT'S GOING TO BE ON WHEN YOU AREN'T HOME WITH VIDEOONDEMAND YOU CONTROL THE PROGRAMMING SCHEDULE MS CAULEY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU THIS GLOSSARY RELIES IN PART ON INFORMATION FROM WIRED MAGAZINE THE ACADEMY OF TELEVISION ARTS & SCIENCES AND THE NEW HACKER'S DICTIONARY 9403210173 940321 SEARS TO REVIVE A PORTION OF CATALOG WITH 130PAGE BOOK OF CHILDREN'S TOYS BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO TAKING ANOTHER STEP TO RESTART A PORTION OF ITS FAILED CATALOG OPERATIONS SEARS ROEBUCK & CO IS PLANNING TO LAUNCH A TOY CATALOG LATER THIS YEAR THE GIANT RETAILER IS PLANNING A 130PAGE CATALOG THAT WOULD BE MAILED TO A PORTION OF THE 25 MILLION CONSUMERS WHO FORMERLY PURCHASED FROM ITS BIG BOOK CATALOG ACCORDING TO SOURCES CLOSE TO THE ARRANGEMENTS SEARS EXECUTIVES HAVEN'T GIVEN FINAL APPROVAL TO THE CATALOG BUT OFFICIALS ARE WORKING QUICKLY TO COORDINATE ARRANGEMENTS WITH TOY MANUFACTURERS AND TO ASSEMBLE A LIST OF PROSPECTIVE CUSTOMERS A SPOKESWOMAN SAID SEARS HAS NO FIRM PLANS TO ISSUE A TOY CATALOG IN THE PAST YEAR SEARS HAS FOLLOWED A POLICY OF NOT TALKING ABOUT ITS CATALOG PROJECTS UNTIL IT FORMALLY LAUNCHES THEM SEARS CLOSED ITS 97YEAROLD BIG BOOK CATALOG LAST YEAR AFTER LOSING 480 MILLION IN THREE YEARS THE CLOSING WAS PART OF A VAST OVERHAUL OF THE NATION'S THIRDLARGEST RETAILER WHICH INCLUDED THE ELIMINATION OF SOME 50000 JOBS BUT SEARS HAS SOUGHT TO REVIVE THE SEGMENTS OF THE CATALOG OPERATIONS THAT IT BELIEVES CAN BE PROFITABLE PRIMARILY BY OUTSOURCING MANY OF THE CATALOG FUNCTIONS PREVIOUSLY SEARS BEGAN A JOINT VENTURE WITH HANOVER DIRECT INC WHICH HAS ISSUED THREE SPECIALTY CATALOGS SELLING KITCHEN ACCESSORIES BEDANDBATH MERCHANDISE AND LARGESIZE WOMEN'S APPAREL UNDER THE ARRANGEMENT SEARS SUPPLIES ITS CUSTOMER LIST AND INFORMATION ABOUT THEIR BUYING HABITS HANOVER COMPOSES THE CATALOG PROCESSES AND FILLS ORDERS AND PAYS SEARS A FEE ON THE ORDERS IT RECEIVES SEARS ALSO IS ISSUING CATALOGS THAT SELL ITS CRAFTSMAN TOOLS AND HEALTHCARE PRODUCTS BUT THOSE OPERATE THROUGH INDEPENDENT VENDORS THAT TAKE AND FILL ORDERS SEARS WOULD OPERATE ITS CHILDREN'S TOYS CATALOG SIMILARLY ONE DRIVING FORCE BEHIND THE TOY CATALOG HAS BEEN SEARS CUSTOMERS WHO IN FOCUS GROUPS INDICATED THEY HAVE FOND CHILDHOOD MEMORIES OF THE RETAILER'S CHRISTMAS WISH BOOK CATALOG CATALOGINDUSTRY OBSERVERS SAY A TOY CATALOG COULD PROVE SEARS'S MOST CHALLENGING VENTURE BECAUSE FEW COMPANIES HAVE HAD SUCCESS SELLING TOYS VIA CATALOG CATALOGS SUCCEED WHEN THEY OFFER PRODUCTS NOT READILY AVAILABLE IN RETAIL STORES BUT MANY TOYS ARE AVAILABLE THROUGH GIANT TOY RETAILERS SUCH AS TOYS R US INC AND FIERCE PRICE COMPETITION AMONG TOY SELLERS MAKES SEARS'S CHALLENGE DIFFICULT WHY THEY'RE DOING THIS AFTER THE SERIOUS BLOODBATH THEY'VE HAD IN THE BIG BOOK CATALOG OVER THE PAST FEW YEARS IS INTRIGUING SAYS ARNOLD FISHMAN A CATALOG CONSULTANT 9403210172 940321 WHO'S NEWS SPX CORP SPX CORP MUSKEGON MICH ALBERT A ZAGOTTA 59 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE AUTO SUPPLIER'S SEALED POWER TECHNOLOGIES UNIT SINCE 1991 WAS NAMED EXECUTIVE VICE PRESIDENT OF SPX AND PRESIDENT OF ITS ORIGINAL EQUIPMENT COMPONENTS GROUP 9403210171 940321 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN STEVEN KERR 53 YEARS OLD WAS NAMED VICE PRESIDENT CORPORATE MANAGEMENT DEVELOPMENT AT THIS ELECTRICAL AND INDUSTRIAL PRODUCTS FINANCIAL SERVICES AND BROADCASTING CONCERN THOSE RESPONSIBILITIES WERE PREVIOUSLY HANDLED BY JAMES BAUGHMAN WHO LEFT TO JOIN JP MORGAN & CO AS A MANAGING DIRECTOR 9403210170 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT ALTERED STATES HOME SHOPPING THE NEXT GENERATION INTERACTIVE SHOWS MAY BE MORE USEFUL MORE EXCITING AND YES MORE PROFITABLE BY PATRICK M REILLY MULTIMEDIA TECHNOLOGY WON'T JUST ENTERTAIN IT WILL ALSO SELL BUT THE ELECTRONIC SALES PITCH IS IN ITS INFANCY TELEVISION HOMESHOPPING SHOWS AND LATENIGHT INFOMERCIALS PUSH SHOPPERS' BUTTONS WITH FORMULAS THAT RELY ON HOARY SHOWBUSINESS PIZAZZ QVC INC AND HOME SHOPPING NETWORK INC HAVE COMBINED SALES OF ABOUT 3 BILLION BUT THEIR FORMATS FOR SELLING CUBIC ZIRCONIUM JEWELRY RESEMBLE 1950SERA TV MORE THAN THE FUTURE MANY TECHNOLOGISTS AND MARKETERS FORESEE FOR INTERACTIVE RETAILING ELECTRONIC MALLS WHERE SHOPPERS WILL BE ABLE TO TAP IN THROUGH THEIR TELEVISIONS OR PERSONAL COMPUTERS TO VIRTUAL STORES ROAMING THE AISLES AND STOPPING TO FIND OUT MORE ABOUT PRODUCTS AS THEY WISH ELECTRONIC RETAILERS ARE BRINGING THAT FUTURE A BIT CLOSER BY EXPERIMENTING WITH NEW FORMATS AND TECHNOLOGIES THEY ARE INTRODUCING SERVICES WITH SOME INTERACTIVE CAPABILITIES THEY ARE TRYING TO PUT VIDEO SHOPPERS INTO STORES EVEN IF FOR NOW THAT JUST MEANS MOVING AWAY FROM STATIC CLOSEUPS OF PRODUCTS ON PEDESTALS IN FAVOR OF BOUTIQUELIKE SETS AND TO HOLD VIEWERS' ATTENTION AMID ALL THE VIDEO CLUTTER THEY ARE TRYING TO MAKE THEIR PROGRAMMING MORE ENTERTAINING MUCH OF WHAT'S BEING TRIED IS STILL A SHOT IN THE DARK NO ONE'S EVER PRODUCED INTERACTIVE CREATIVE WORK BEFORE SAYS GORDON COOKE PRESIDENT OF TIME WARNER INTERACTIVE MERCHANDISING A NEW UNIT OF TIME WARNER INC SO THERE IS NO ANSWER YET ABOUT WHAT WORKS BEST BUT THE OLD FORMS LEAVE PLENTY OF ROOM FOR IMPROVEMENT IN TURNING PASSIVE VIEWERS INTO CREDITCARDFLASHING BUYERS WHILE INFOMERCIALS RANG UP CLOSE TO 1 BILLION IN SALES LAST YEAR ONLY ONE IN EIGHT SUCCEEDS IN GENERATING A STEADY STREAM OF ORDERS TIME WARNER'S INTERACTIVE FULL SERVICE NETWORK WILL GIVE TEST SUBSCRIBERS IN ORLANDO FLA A NEW TWIST ON HOME SHOPPING BY LATE FALL VIEWERS WILL BE ABLE TO BROWSE THROUGH A MENU OF 20000 PRODUCTS FROM A SUPERMARKET AND 7500 ITEMS FROM A DRUGSTORE USING HANDHELD REMOTE CONTROLS THEY WILL ALSO BE ABLE TO ROTATE DISPLAYED PRODUCTS TO READ DIRECTIONS OR IDENTIFY INGREDIENTS NEW HYBRID FORMATS ARE APPEARING AS WELL TALKSHOW DIVA JOAN RIVERS WEAVES PRODUCT PITCHES AND GOSSIPY GAB INTO THE MOST EXTENSIVE HOMESHOPPING SHOW YET TO AIR ON BROADCAST TV OTHER NEW ENTRIES ARE STRETCHING THE BOUNDARIES OF WHAT CAN BE SOLD ON THE TUBE ADAM & EVE SHOPPING CHANNEL BASED IN NORTHRIDGE CALIF PEDDLES ADULT EROTIC PRODUCTS WITH SOFTPORN FLOURISHES SOME OF THE NEWEST TECHNIQUES WILL BE FOUND STARTING IN MAY ON Q2 THE NEW LIFESTYLE SHOPPING CHANNEL FROM QVC WEST CHESTER PA OUR LOOK WILL BE DIFFERENT FROM ANY SHOPPING CHANNEL TODAY SAYS CANDICE CARPENTER PRESIDENT OF Q2 WE WON'T DO SOMETHING THAT LOOKS LIKE A SITCOM OR TALK SHOW BUT WE WILL INTERVIEW EXPERTS AND HIGHPROFILE USERS OF PRODUCTS Q2 WILL TRY A STORYTELLING APPROACH MS CARPENTER SAYS WE WANT TO TELL A STORY TIED TO THE END PURPOSE WHICH IS THE PRODUCTS AND HOW PEOPLE WILL USE THEM TO SELL NIKE SNEAKERS Q2 MIGHT TALK ABOUT THE THREE YEARS OF RESEARCH IT TAKES TO DEVELOP AN ATHLETIC SHOE WHEN PRESENTING A DESIGNER'S LEATHER JACKET IT MIGHT SHOW HOW SUCH GARMENTS HAVE FIT INTO FASHION IN PAST DECADES IT WILL ALSO OFFER MULTIPLE PRODUCTS WITHIN A SINGLE SHOPPING PROGRAM FIVE BRANDS OF MOUNTAIN BIKES SAY AT VARIOUS PRICES AND CAPABILITIES WHEN Q2 FEATURES A DESIGNER DRESS IT WILL BE PART OF AN OVERALL LOOK WITH ACCESSORIES FROM A VARIETY OF SUPPLIERS AND SOURCES ONE OF Q2'S TEST SHOWS HAS HOT NEW YORK RESTAURATEUR PINO LUONGO COOKING AN ITALIAN DINNER TALKING ABOUT THE ROMANCE OF TUSCAN COOKING AND WHY HE LIKES USING A CERTAIN BRAND OF COOKWARE WHICH CALLERS CAN ORDER BY PHONE HE ALSO MAKES A PITCH FOR HIS OWN LINE OF PRECOOKED PASTA SAUCES IT ISN'T HAWKING MS CARPENTER SAYS IT'S ALL ABOUT HAVING DINNER SOME OF THE NEW ELECTRONIC RETAILERS SEE NOTHING WRONG WITH A HARD SELL LARRY FERBER EXECUTIVE PRODUCER OF CAN WE SHOP STARRING JOAN RIVERS SAYS THAT ON ORDINARY TALK SHOWS AN AUTHOR MIGHT PLUG A BOOK BUT CAN'T URGE VIEWERS TO ORDER IT ON AN 800 NUMBER ON OUR SHOW THEY WILL BE ABLE TO HE SAYS THE RIVERS SHOW'S AMALGAM OF GOSSIPY ENTERTAINMENT AND PURE SALES IS ALSO A BREAKTHROUGH OF SORTS BUT SELLING IS SOMETHING JOAN WON'T DO SAYS MR FERBER INSTEAD WHEN IT'S TIME FOR THE PITCH MS RIVERS PITCHES THE SHOW OVER TO AN ASSISTANT WHO HANDLES THE ONCAMERA SELL THAT LEAVE MS RIVERS TO CONCENTRATE ON DRAWING OUT THE PERSONAL ANECDOTES AND ADVICE THAT DAYTIME VIEWERS GOBBLE UP WE WANT PERSONAL STORIES AND INFORMATION MR FERBER SAYS LIKE WHAT ARE THE FIVE EASY STEPS FOR HAIR CARE AS MORE ELECTRONIC SHOPPING SERVICES FLOOD THE AIRWAVES AND VIE FOR VIEWERS THE TRICK WILL BE GRABBING THE ATTENTION OF CHANNEL SURFERS FOR THAT TV MARKETERS ARE BORROWING MORE HEAVILY FROM ENTERTAINMENT MEDIA JOHN RIPPER PRESIDENT AND A PARTNER IN TYEE PRODUCTIONS INC OF PORTLAND ORE CALLS SOME OF HIS MOST SUCCESSFUL INFOMERCIALS STORYMERCIALS WHICH HE SAYS ARE STRUCTURED LIKE A THREEACT PLAY TO ENTERTAIN AS WELL AS SELL AS MR RIPPER DESCRIBES THE FORMULA BOY MEETS GIRL BOY AND GIRL FIND THEY HAVE TO WORK TOGETHER AND THEN A LITTLE TWIST IN THE THIRD PART IT'S CONTROLLED DRAMA TYEE'S PROGRAM ON THE GRAVITY EDGE FITNESS MACHINE IS ONE OF THIS YEAR'S MOST FREQUENTLY AIRED INFOMERCIALS IN IT A YOUNG MOTORCYCLIST ENCOUNTERS A FETCHING PERSONAL TRAINER WHO RECOMMENDS THE GRAVITY EDGE MADE BY SLM INTERNATIONAL INC OF NEW YORK IN A CLASH OF EGOS HE RESISTS BUT IS EVENTUALLY WON OVER AND THE TWIST A STRONG HINT THAT THE TWO ARE STARTING A ROMANCE CELEBRITY ENDORSERS ARE ANOTHER STAPLE OF ELECTRONIC RETAILING THOUGH A RISKY ONE LAST FALL TYEE CREATED REVLON INC'S FIRST INFOMERCIAL FEATURING COUNTRY SINGER DOLLY PARTON AND HER DOLLY'S BEAUTY CONFIDENCE COSMETICS THE STORY LINE FOLLOWS MS PARTON AS SHE TRAVELS ON HER TOUR BUS TO HER DOLLYWOOD THEME PARK ALONG THE WAY SHE COMPOSES A SONG TITLED BEAUTY CONFIDENCE WITH EACH VERSE SHE REMINISCES ABOUT HER PAST AND HOW SHE GOT INTERESTED IN COSMETICS AS A CHILD SHE CONFIDES HER FAMILY WAS SO POOR THAT SHE MADE LIPSTICK OUT OF CRUSHED BERRIES TYEE'S MR RIPPER SHOT THE HALFHOUR INFOMERCIAL WITH HIGHGRADE 35MILLIMETER FILM USED IN MOVIES AND EXPENSIVE COMMERCIALS AND EVEN ADDED ORIGINAL MUSIC BUT WHEN FOCUS GROUPS WATCHED THE INFOMERCIAL LAST FALL TYEE AND NEW YORKBASED REVLON FOUND THEY HAD FOCUSED TOO MUCH ON MS PARTON AND NOT ENOUGH ON THE COSMETICS MR RIPPER SAYS HE TINKERED WITH THE INFOMERCIAL BEFORE ITS RELEASE LAST MONTH KEEPING THE STORY LINE WHILE ALSO SHOWING MORE INFORMATION ON THE PRODUCT BY ADDING THE COSMETICS EXPERT MS PARTON WORKED WITH TO DEVELOP THE LINE WHEN NEW YORKBASED TIME WARNER INTRODUCES ITS INTERACTIVE FULL SERVICE NETWORK THIS YEAR IN ORLANDO IT TOO WILL RELY ON CELEBRITIES OF A SORT IT PLANS TO USE SUCH WARNER BROS CARTOON CHARACTERS AS BUGS BUNNY AND THE TASMANIAN DEVIL TO GUIDE SUBSCRIBERS THROUGH VARIOUS FUNCTIONS IN AN ONLINE WARNER BROS STUDIO STORE WE DON'T WANT THE SYSTEM TO BE FLAT LIKE A CATALOG SAYS MR COOKE THE TIME WARNER INTERACTIVE MERCHANDISING PRESIDENT SO WE COULD DRESS IT UP AND USE BUGS AS A SORT OF CONCIERGE WHO LEADS SUBSCRIBERS THROUGH THE ORDERING STEPS MR REILLY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9403210169 940321 WHO'S NEWS REXALL SUNDOWN INC REXALL SUNDOWN INC BOCA RATON FLA CYRIL S JACOBSON WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT SALES AND MARKETING OF PENNEX LABORATORIES INC THE VERONA PA SUBSIDIARY OF THIS HEALTHPRODUCTS CONCERN MR JACOBSON 56 YEARS OLD WAS FORMERLY VICE PRESIDENT OF PRIVATELY HELD TOPCO ASSOCIATES INC A SKOKIE ILL MAKER OF HEALTH AND BEAUTY PRODUCTS 9403210168 940321 WHO'S NEWS FARRAGUT MORTGAGE CO FARRAGUT MORTGAGE CO MANSFIELD MASS JOHN LAKIAN RESIGNED AS CHAIRMAN BUT WILL REMAIN A BOARD MEMBER THE RESIDENTIAL MORTGAGE BANKING COMPANY SAID BOARD MEMBERS ELECTED STEPHEN H DICKMANN FARRAGUT'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AS CHAIRMAN THE COMPANY SAID MR LAKIAN WHO ISN'T AN EXECUTIVE OF THE COMPANY RESIGNED AS CHAIRMAN TO PURSUE PERSONAL INTERESTS 9403210167 940321 US AND 17 COUNTRIES MEET TO TACKLE FINANCE ISSUES OF ASIA'S INFRASTRUCTURE BY WILLIAM MURRAY SPECIAL TO THE WALL STREET JOURNAL HONOLULU THE US AND 17 ASIANPACIFIC COUNTRIES AGREED TO WORK TOGETHER TO ASSURE THE ORDERLY FINANCING OF THE 1 TRILLION THAT ASIAN NATIONS PLAN TO SPEND ON POWER PLANTS HIGHWAYS TELECOMMUNICATIONS AND OTHER INFRASTRUCTURE IN THE 1990S MOBILIZING THE CAPITAL NEEDED TO FINANCE HIGH LEVELS OF PRIVATE INVESTMENT AND INFRASTRUCTURE DEVELOPMENT PRESENTS A FORMIDABLE CHALLENGE FOR THE REGION THE 18 FINANCE MINISTERS SAID THE GATHERING HERE OF FINANCE MINISTERS WAS THE FIRST UNDER THE ASIANPACIFIC ECONOMIC COOPERATION FORUM US TREASURY SECRETARY LLOYD BENTSEN AND HIS DEPUTY LAWRENCE SUMMERS CONVENED THE MEETING TO ENGAGE CHINA IN AN ECONOMIC DIALOGUE AND TO EMPHASIZE ASIA'S GROWING IMPORTANCE TO WORLD ECONOMY MORE MONEY IS GOING TO FLOW MORE RAPIDLY OVER MORE SPACE IN THIS REGION OVER THE NEXT DECADE THAN AT ANY TIME IN THE HISTORY OF THE WORLD A US TREASURY OFFICIAL SAID LAST WEEK INFRASTRUCTURE PROJECTS AND FINANCING THEM PRESENT MAJOR BUSINESS OPPORTUNITIES FOR US FIRMS MR BENTSEN SAID THE MINISTERS AGREED TO CONSULT MORE OFTEN PARTICULARLY ON FINANCIAL MARKET DEVELOPMENT AND LIBERALIZATION ISSUES WE SHARE A GOAL TO KEEP UP THE GROWTH AND INVESTMENT HE SAID THOUGH THE MINISTERS AGREED TO MEET AGAIN IN 1995 SOME HAVE RESISTED THE US ATTEMPT TO MAKE THE GATHERING AN ANNUAL EVENT JAPANESE FINANCE MINISTER HIROHISA FUJII TOLD REPORTERS THAT THIS ISN'T A REGULAR MEETING NOR IS THIS AN INSTITUTIONALIZED THING WHILE SOME ASIAN OFFICIALS ARE CONCERNED THAT THE US WILL USE APEC AS A VEHICLE TO DOMINATE REGIONAL POLICYMAKING THE WEEKEND SESSION WAS BY ALL ACCOUNTS LARGELY POLITE MAYBE AS WE GET TO KNOW EACH OTHER BETTER WE'LL START TELLING OTHER PEOPLE WHAT TO DO BUT RIGHT NOW EVERYBODY WAS ON THEIR BEST BEHAVIOR SAID CANADIAN FINANCE MINISTER PAUL MARTIN REPRESENTING 18 NATIONS FINANCE MINISTERS ATTENDING THE APEC MEETING CAME FROM AUSTRALIA BRUNEI CANADA CHILE CHINA HONG KONG INDONESIA JAPAN MALAYSIA MEXICO NEW ZEALAND PAPUA NEW GUINEA SINGAPORE SOUTH KOREA TAIWAN THAILAND THE PHILIPPINES AND THE US WHILE DIFFERENCES REMAIN OVER THE PACE OF MARKET DEVELOPMENT AND DEREGULATION THE APEC MINISTERS STRESSED THAT IMPROVEMENTS IN THE CAPACITY TO FINANCE INFRASTRUCTURE PROJECTS ARE NECESSARY TO ADDRESS CURRENT INEFFICIENCIES THEY ENDORSED FURTHER CONSULTATIONS TO IMPROVE DOMESTIC BANKING EQUITY MARKETS AND PARTICULARLY BOND MARKETS AS A KEY SOURCE OF FINANCING FOR LARGE PROJECTS THE MINISTERS TALKED ABOUT WAYS TO AVOID THE PITFALLS OF FINANCIAL DEREGULATION INDONESIAN FINANCE MINISTER MAR'IE MUHAMMAD SAID THAT FOREIGN CAPITAL CAN PLAY A SIGNIFICANT ROLE IN PROMOTING THE EFFICIENCY OF DOMESTIC RESOURCES BUT HE ADDED THAT QUESTIONS REMAIN OVER THE TYPE OF PRIVATE CAPITAL FLOWS THAT SHOULD BE WELCOMED AND WHAT FINANCIAL INSTRUMENTS SHOULD BE ENCOURAGED AND HOW THEY SHOULD BE MANAGED OUR OPEN CAPITAL ACCOUNT LEAVES US SUSCEPTIBLE TO POTENTIAL DISRUPTIONS BY SPECULATIVE FLOWS OF 'HOT' MONEY MR MUHAMMAD SAID ABRUPT MOVEMENTS OF SUCH FUNDS CAN DISRUPT LOCAL ECONOMIES INDONESIA AND OTHERS IN THE REGION ARE INCREASINGLY CONCERNED HE ADDED THE APEC MINISTERS ASKED FINANCE MINISTRY DEPUTIES AND SENIOR CENTRAL BANK OFFICIALS TO MEET BY EARLY NEXT YEAR TO REVIEW REGIONAL MACROECONOMIC DEVELOPMENTS AND TO ADDRESS ISSUES REGARDING CAPITAL FLOWS 9403210166 940321 TECHNOLOGY & HEALTH PACIFIC BELL PLANS TEST TO SEND MOVIES TO THEATERS BY USING FIBEROPTIC LINES BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL PACIFIC BELL IS EXPECTED TO ANNOUNCE PLANS TODAY TO TEST A NEW SERVICE THAT WOULD TAKE THE FILM OUT OF MOVIES LITERALLY THE REGIONAL TELEPHONE COMPANY IS SLATED TO BEGIN TRANSMITTING DIGITIZED MOVIES DIRECTLY TO A FEW NEIGHBORHOOD THEATERS IN THE INDUSTRY'S MOST EXTENSIVE TEST SO FAR DUBBED THE CINEMA OF THE FUTURE THE SERVICE ULTIMATELY WOULD AIM AT LETTING HOLLYWOOD STUDIOS CUT MILLIONS OF DOLLARS OUT OF THE COST OF DISTRIBUTING NEW RELEASES TO THEATERS NATIONWIDE IN TWO YEARS THE PHONE COMPANY HOPES TO BE BEAMING DIGITAL FLICKS ACROSS FIBEROPTIC LINES TO 2000 TO 3000 THEATER SCREENS PACBELL HAS TALKED WITH AMERITECH CORP THE CHICAGOBASED BABY BELL THAT COVERS THE MIDWEST AND BELL ATLANTIC CORP WHICH PROVIDES PHONE SERVICE TO SIX MIDATLANTIC STATES ABOUT EXTENDING THE SERVICE IN THEIR RESPECTIVE REGIONS WHILE THE NEWFANGLED FILMS WILL FACE THE SAME BOX OFFICE UNCERTAINTIES OF ALL HOLLYWOOD RELEASES THE NEW SERVICE IS A TECHNOTHRILLER IN ITS OWN RIGHT THE TYPICAL TWOHOUR MOVIE AMOUNTS TO EIGHT TRILLION BITS OF DATA WHICH WILL BE COMPRESSED BY A FACTOR OF 25 TO 1 FOR A STILLBULKY 320 BILLION BITS ABOUT 40 GIGABYTES EQUIPMENT AT THE FILM STUDIO WILL DIGITIZE THE FARE THEN ZAP IT ALONG PACBELL'S FIBEROPTIC LINES TO A VIDEO SERVER WHICH WILL DELIVER IT TO STILL MORE GEAR FOR RECOMPILING THE DRAMA AND COMEDY AND FEEDING IT TO HIGHDEFINITION FILM PROJECTORS IN THE LOCAL THEATER IN THEORY AT LEAST THE SERVICE WOULD BE SO ENTIRELY AUTOMATED THAT IT COULD AVOID EVEN THE GLITCHES OF A SLEEPY PROJECTIONIST WHO DOZES OFF BETWEEN REELS THEORETICALLY YOU COULD HAVE ONE GUY SITTING IN A CLOSET ANYWHERE IN THE WORLD PROGRAMMING ALL 25000 THEATER SCREENS IN THE COUNTRY SAYS RICHARD MIZER PACIFIC BELL'S TECHNICAL MANAGER FOR ADVANCED VIDEO SERVICES PACBELL IS WELL POSITIONED TO TRY OUT THE NEW EFFORT IT PROVIDES LOCAL PHONE SERVICE IN CALIFORNIA AND SO IS WELL ACQUAINTED WITH HOLLYWOOD CLIENTELE IT ALSO HAS EXPERIENCE IN THE DIGITAL REALM LAST SUMMER AS DIRECTOR STEVEN SPIELBERG WAS FILMING SCHINDLER'S LIST IN POLAND HE WAS ALSO EDITING JURASSIC PARK RELYING ON PACBELL'S ADVANCED BROADCAST VIDEO SERVICES TO MOVE A DIGITAL VERSION OVER INTERCONTINENTAL PHONE LINES EXECUTIVES AT PACBELL AND ALCATELALSTHOM WHICH WILL PROVIDE MOST OF THE DIGITIZING AND TRANSMISSION GEAR FOR THE TEST CONTEND SUCH A SERVICE COULD LET HOLLYWOOD SHARPLY REDUCE SOME 300 MILLION A YEAR IN DISTRIBUTION COSTS THE AVERAGE FILM BUDGET IS 15 MILLION TO 20 MILLION AND ABOUT 25 OF THAT COVERS DISTRIBUTION CURRENTLY AS STUDIOS MAKE HUNDREDS OF COPIES AND SHIP THEM BY COURIER TO HUNDREDS OF THEATERS IT IS A LATTERDAY PONY EXPRESS SAYS HOWARD GUNN A MARKETING VICE PRESIDENT ALCATEL'S NORTH AMERICAN SUBSIDIARY ALCATEL NETWORK SYSTEMS PUTTING IN PLACE AN ALLDIGITAL SYSTEM HOWEVER WOULD HAVE SIZABLE COSTS AS WELL SOME INDUSTRY EXECUTIVES SAY THE COST OF DIGITIZING SO MANY MOVIES WOULD BE HUGE IT ALSO COULD COST UP TO 100000 TO EQUIP EACH THEATER SCREEN OR 25 BILLION TO LINK UP EVERY SCREEN IN AMERICA 9403210165 940321 GOLDMAN PLANS PURCHASE OF 1 BILLION OF GE UNIT'S LOWDOWNPAYMENT LOANS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTMENT BANK GOLDMAN SACHS & CO IS BUYING 1 BILLION OF GE CAPITAL MORTGAGE CORP MORTGAGE LOANS CONSIDERED TOO RISKY FOR FEDERAL MORTGAGE AGENCIES THE LOANS WHICH CARRY A HIGHER DEFAULT RISK THAN STANDARD MORTGAGES WILL BE MADE OVER THE NEXT YEAR BY BANKS AND THRIFTS TO BORROWERS WHO WILL BE REQUIRED TO MAKE ONLY A 3 DOWN PAYMENT ON THEIR HOMES GOLDMAN PLANS TO RESELL THE LOANS AND THE MONTHLY INCOME STREAM THEY PRODUCE TO INSTITUTIONAL INVESTORS THE AGREEMENT WAS REPORTED FRIDAY IN AMERICAN BANKER MAGAZINE THE LOANS ARE DESIGNED FOR LOWINCOME AND MIDDLEINCOME BUYERS AND GENERALLY CAN'T BE GRANTED TO BORROWERS WHO EARN MORE THAN 15 ABOVE A REGION'S MEDIAN ANNUAL INCOME LOAN RECIPIENTS WILL PAY AN INTEREST RATE ABOUT 0625 HIGHER THAN THE STANDARD MORTGAGE RATE CURRENTLY ABOUT 7 ACCORDING TO GE CAPITAL HOWARD S ALTARESCU HEAD OF MORTGAGE FINANCE FOR GOLDMAN SAID THE MORTGAGES MAY BE PERCEIVED AS RISKIER THAN GENERIC LOANS BECAUSE OF THE LOWER DOWN PAYMENT HOWEVER BEFORE BEING SOLD TO INVESTORS THE LOANS MAY FEATURE CREDIT ENHANCEMENT HE SAID THE PURCHASE DOESN'T MEAN GOLDMAN IS TRYING TO CREATE A MORTGAGE JUNK MARKET HE SAID BECAUSE MANY OR MOST OF THE LOANS WILL CARRY THE TOP CREDIT RATING OF TRIPLEA AFTER THE CREDIT ENHANCEMENT FOR GOLDMAN THE DEAL PROVIDES PRODUCT FOR THE PIPELINE THE BROKERAGE INDUSTRY'S HUGELY PROFITABLE PRACTICE OF POOLING MORTGAGES AND SELLING THEM AS SECURITIES HAS BEEN RUNNING DRY IN THE CURRENT LOWINTERESTRATE ENVIRONMENT BANKERS AND ANALYSTS SAY MANY HOME BUYERS WHO PLANNED TO TAKE OUT MORTGAGES OR TO REFINANCE EXISTING MORTGAGES HAVE ALREADY DONE SO GE CAPITAL PART OF A FINANCIALSERVICES SUBSIDIARY OF GENERAL ELECTRIC CO USUALLY RESELLS MORTGAGES IT BUYS FROM BANKS AND THRIFTS TO THE TWO FEDERAL MORTGAGE AGENCIES THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND THE FEDERAL HOME LOAN MORTGAGE CORP BUT THOSE AGENCIES WITH SOME EXCEPTIONS WON'T BUY MORTGAGE LOANS IN WHICH THE BORROWER HAS MADE A DOWN PAYMENT OF LESS THAN 20 HISTORICALLY LOANS WITH LESS THAN A 20 DOWN PAYMENT HAVE HIGHER DEFAULT RATES THAN THOSE WITH MORE SIZABLE DOWN PAYMENTS NOT ONLY ARE BUYERS' INCOMES TYPICALLY LOWER THE BUYERS ALSO HAVE MADE LESS OF AN INVESTMENT DIMINISHING THEIR INCENTIVE TO STAY ON THE PROPERTY AT A 10 DOWN PAYMENT OR BELOW THE DEFAULT RATE REALLY BEGINS TO ACCELERATE SAID ANDREW CARRON A DIRECTOR OF FIXEDINCOME RESEARCH AT CS FIRST BOSTON INC THE BROKERAGE UNIT OF CS HOLDINGS INC IN THE STANDARD TRIPLEARATED MORTGAGE SECURITY INVESTORS ARE COVERED EVEN IF AS MUCH AS 6 TO 10 OF THE MORTGAGES' PRINCIPAL AMOUNT IS LOST THROUGH DEFAULT FOR MORTGAGES WITH LOWER DOWN PAYMENTS MORE LOSS COVERAGE WILL BE REQUIRED IF THEY ARE SOLD AS SECURITIES SAID GOLDMAN'S MR ALTARESCU THEY COULD HOWEVER BE SOLD OUTRIGHT AS WHOLE LOANS AS OPPOSED TO BEING REPACKAGED AS SECURITIES IN THAT CASE THEY MIGHT OR MIGHT NOT OFFER CREDIT ENHANCEMENT HE SAID GENERAL ELECTRIC'S GE MORTGAGE INSURANCE UNIT HAS OFFERED TO PROVIDE THE CREDIT ENHANCEMENT THE PROFIT FOR GOLDMAN WILL COME NOT ONLY IN SALES OF THE LOANS BUT ALSO IN TRADING PROFIT WHEN THE FIRM MAKES A SECONDARY MARKET FOR THE LOANS THE NEW LOWDOWNPAYMENT MORTGAGE ALSO MEETS THE NEEDS OF LOCAL BANKS AND SAVINGS AND LOANS WHICH ARE UNDER PRESSURE TO CORRECT PAST PRACTICES OF EXCLUDING MINORITIES AND LOWINCOME REGIONS FROM THEIR MORTGAGELOAN PROGRAMS WE'RE HOPING THERE WILL BE A STRONG DEMAND FOR THE LOANS FROM BOTH BORROWERS AND INVESTORS SAID MARK GOLDHABER A GE CAPITAL EXECUTIVE INVOLVED IN STRUCTURING THE PROGRAM PENSION FUNDS AND BANKS HAVE SHOWN REAL INTEREST HE SAID HE ADDED THAT A DETAILED PROGRAM OF HOME BUYER EDUCATION WILL ENCOURAGE BORROWERS NOT TO BUY MORE HOME THAN THEY CAN AFFORD AND WILL COUNSEL THEM AFTER THE PURCHASE ON ANY FINANCIAL PROBLEMS HOME BUYERS ARE ELIGIBLE IF THEY EARN 115 OR LESS OF A REGION'S MEDIAN ANNUAL INCOME FOR EXAMPLE THE MEDIAN ANNUAL INCOME FOR DALLAS IS 32825 ACCORDING TO US CENSUS FIGURES USED BY GE CAPITAL THE FIGURE FOR MINNEAPOLIS IS 36565 GOLDMAN IS MAKING THE DEAL AT A TIME WHEN LATE PAYMENTS ON HOME LOANS ARE AT A HISTORIC LOW THE MORTGAGE BANKERS ASSOCIATION PUT THE SEASONALLY ADJUSTED RATE FOR THE PAST THREE MONTHS AT 4 LAST MONTH THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AGREED TO BUY 500 MILLION OF LOANS WITH 3 DOWN PAYMENTS FROM GE CAPITAL HOWEVER THAT WAS A PILOT PROGRAM AND FANNIE MAE HAS SO FAR DECLINED TO MAKE ADDITIONAL PURCHASES ACCORDING TO GE CAPITAL THE FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC HAS DECLINED TO BUY ANY OF THE LOANS 9403210164 940321 WHO'S NEWS BEST PRODUCTS CO BEST PRODUCTS CO RICHMOND VA THIS CATALOG SHOWROOM RETAILER ELECTED SIX NEW BOARD MEMBERS DONALD D BENNETT PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RICHFOOD INC A RICHMOND FOOD DISTRIBUTOR AND UNIT OF RICHFOOD HOLDINGS INC WILLIAM C DERUSHA CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HEILIGMEYERS CO A RICHMOND FURNITURE AND HOUSEHOLDAPPLIANCE RETAILER JOHN C JAMISON LIMITED PARTNER IN GOLDMAN SACHS & CO MARGARET A MCKENNA PRESIDENT OF LESLEY COLLEGE IN CAMBRIDGE MASS DENIS J TAURA CHAIRMAN OF D TAURA & ASSOCIATES PRINCETON NJ AND MARSHALL B WISHNACK PRESIDENT AND CHIEF EXECUTIVE OFFICER OF RICHMONDBASED BROKERAGE FIRM WHEAT FIRST SECURITIES INC THE ELECTIONS ARE PENDING APPROVAL OF FEDERAL BANKRUPTCY COURT WHERE THE COMPANY IS UNDER CHAPTER 11 PROTECTION STEWART M KASEN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER WILL REMAIN ON THE NEW BOARD 9403210163 940321 WHO'S NEWS DRESSER INDUSTRIES INC DRESSER INDUSTRIES INC DALLAS DONALD G STOKES 52 YEARS OLD WAS NAMED VICE PRESIDENT AND DIRECTOR CONSTRUCTION AND FIELD SERVICES OF THIS ENERGY SERVICES COMPANY'S ENGINEERING AND CONSTRUCTION UNIT MW KELLOGG CO MR STOKES A FORMER PROJECT DIRECTOR SUCCEEDS MICHAEL A ALDAG 54 WHO WAS NAMED TO THE UNIT'S NEWLY CREATED POSITION OF VICE PRESIDENT AND DIRECTOR WORLDWIDE LIQUEFIED NATURAL GAS OPERATIONS 9403210162 940321 WHO'S NEWS CHARLES SCHWAB CORP CHARLES SCHWAB CORP SAN FRANCISCO DAVID S POTTRUCK 45 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER AND A DIRECTOR OF THE DISCOUNT BROKERAGE COMPANY INCREASING THE BOARD'S SIZE TO 10 MR POTTRUCK WILL CONTINUE AS PRESIDENT OF THE COMPANY AND AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS BROKERAGE SUBSIDIARY CHARLES SCHWAB & CO IN HIS NEW TITLE MR POTTRUCK SUCCEEDS LAWRENCE J STUPSKI WHO CONTINUES AS VICE CHAIRMAN 9403210161 940321 WHO'S NEWS MORNINGSTAR GROUP NAMES METROPOLOUS PRESIDENT AND CEO DALLAS MORNINGSTAR GROUP INC SAID C DEAN METROPOLOUS 47YEAROLD CHAIRMAN OF THE SPECIALTYFOODS COMPANY WAS NAMED TO THE ADDITIONAL POSTS OF PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SUCCEEDS JAMES A BACH 44 WHO THE COMPANY SAID RESIGNED TO PURSUE OTHER INTERESTS MR BACH DECLINED TO COMMENT ON HIS DEPARTURE MORNINGSTAR POSTED A NET LOSS OF 42 MILLION OR 28 CENTS A SHARE ON SALES OF 1063 MILLION FOR THE FOURTH QUARTER LAST YEAR MR METROPOLOUS FORMERLY PRESIDENT AND CHIEF EXECUTIVE OF STELLA FOODS INC WAS BROUGHT IN AS CHAIRMAN DEC 15 TO IMPROVE THE COMPANY'S PERFORMANCE IN JANUARY MORNINGSTAR ANNOUNCED A RESTRUCTURING OF OPERATIONS AND SUSPENDED ITS DIVIDEND MR METROPOLOUS WHO SAID HE HADN'T ANTICIPATED TAKING OVER THE ADDITIONAL POSTS AT THE TIME HE WAS NAMED CHAIRMAN SAID HE WILL CONTINUE TO WORK ON ACQUISITIONS WITH HICKS MUSE TATE & FURST INC THE PRIVATE LEVERAGEDBUYOUT CONCERN THAT ACQUIRED MORNINGSTAR IN 1991 AND TOOK IT PUBLIC THE FOLLOWING YEAR MR METROPOLOUS ALSO SAID THAT THE COMPANY MAY BRING IN A NEW CHIEF EXECUTIVE AT SOME POINT DOWN THE ROAD BUT THAT FOR NOW HE WILL FOCUS ON THE RESTRUCTURING OF THE COMPANY AND ON MAKING NICHE ACQUISITIONS THAT EXTEND MORNINGSTAR'S MARKET PENETRATION IN VARIOUS PARTS OF THE COUNTRY HE SAID THE COMPANY IS IN DISCUSSIONS REGARDING SEVERAL POTENTIAL ACQUISITIONS BUT DECLINED TO PROVIDE DETAILS 9403210160 940321 THE DISTRICT MAY TURN TO TREASURY FOR FINANCIAL AID BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE DISTRICT OF COLUMBIA IS FACING A SERIOUS CASH SQUEEZE AND MAY HAVE TO BORROW FROM THE TREASURY ELLEN O'CONNOR THE CITY'S FINANCE DIRECTOR SAID THE CASH SQUEEZE STEMS IN LARGE PART FROM UNCERTAINTY OVER THE FATE OF MAYOR SHARON PRATT KELLY'S PLAN TO DEFER 230 MILLION IN PAYMENTS TO A CITY PENSION FUND THE PROPOSAL HAS ENCOUNTERED STRONG POLITICAL OPPOSITION AND THE PENSION FUND'S BOARD HAS GONE TO COURT TO FORCE THE MAYOR TO MAKE THE PAYMENT COMMENTING ON AN ARTICLE IN SUNDAY'S WASHINGTON POST MS O'CONNOR DENIED THAT THE CITY FACES A NEARTERM FINANCIAL CRISIS BUT SHE READILY ACKNOWLEDGED THAT WE HAVE SOME VERY SERIOUS LONGTERM PROBLEMS THESE INCLUDE DIFFICULTIES FAMILIAR TO MANY MAJOR AMERICAN CITIES A SHRINKING TAX BASE DUE TO THE MIGRATION OF BUSINESSES AND MIDDLE AND UPPERINCOME TAXPAYERS TO THE SUBURBS COMBINED WITH RISING COSTS ASSOCIATED WITH THE REMAINING LARGELY LOWINCOME POPULATION BUT MS O'CONNOR STRESSED THAT THE DISTRICT HAS HAD NO PROBLEM RAISING MONEY ON WALL STREET AND IS CONFIDENT THAT THE CITY WON'T LOSE ACCESS TO THE MARKET AS HAPPENED TO NEW YORK CITY DURING THAT CITY'S FINANCIAL CRISIS IN THE 1970S IT'S NOT A MARKETACCESS PROBLEM MS O'CONNOR SAID IN AN INTERVIEW IN FACT SHE SAID WASHINGTON PLANS TO SELL AS MUCH AS 200 MILLION IN REVENUEANTICIPATION NOTES ON WALL STREET NEXT MONTH WHILE CONFIRMING THAT TREASURY BORROWING IS UNDER CONSIDERATION SHE SAID THE POSSIBILITY OF IT BEING USED IS REMOTE AS THE NATION'S CAPITAL THE DISTRICT HAS LONG HAD UNIQUE STATUS IT ROUTINELY BORROWED FROM THE TREASURY UNTIL THE 1980S AND IT STILL HAS THE AUTHORITY TO DO SO BUT IT HASN'T EXERCISED THAT OPTION FOR A DECADE THE CITY'S ATTEMPT TO DEFER PENSIONFUND CONTRIBUTIONS IS CONSIDERED A HIGHLY UNUSUAL MOVE THAT INDICATES CONSIDERABLE FINANCIAL STRESS MS O'CONNOR SAID THE FATE OF THAT PROPOSAL AND THE UPSHOT OF CITYCOUNCIL ACTION ON THE DISTRICT'S BUDGET SHOULD BE CLEAR WITHIN THE NEXT MONTH OR SO WE'LL HAVE TO GO TO TREASURY IF WE LOSE THE LAWSUIT AND HAVE A BUDGET THAT ISN'T BALANCED SHE SAID SHE SAID THE CITY NEEDS LONGTERM ASSISTANCE IN MEETING ITS PENSION OBLIGATIONS SHE ALSO ARGUED AS DISTRICT OFFICIALS HAVE FOR YEARS THAT THE CITY NEEDS MORE FEDERAL AID AND GREATER POLITICAL AUTONOMY 9403210159 940321 MARKETING & MEDIA CBS SPORTS' PILSON IS STEPPING ASIDE AFTER 10YEAR STINT BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CBS SPORTS PRESIDENT NEAL PILSON STEPPED ASIDE FRIDAY AS EXPECTED AFTER MORE THAN A DECADE OVERSEEING THE DIVISION OF CBS INC MR PILSON WILL BECOME A SENIOR VICE PRESIDENT AT CBS'S BROADCAST GROUP AS OF APRIL 11 WORKING ON UNSPECIFIED NEW BUSINESS ISSUES CBS HASN'T YET NAMED A SUCCESSOR FOR THE UNIT WHICH IS IN THE PROCESS OF BEING SHARPLY SCALED BACK AFTER LOSING BOTH MAJOR LEAGUE BASEBALL AND NATIONAL FOOTBALL LEAGUE RIGHTS FOR THE COMING SEASON ONE CANDIDATE TO SUCCEED MR PILSON IS JOSEPH ABRUZZESE CBS'S SENIOR VICE PRESIDENT OF SALES WHO IS KNOWN AS A MASTERFUL NEGOTIATOR MR ABRUZZESE NOW REPORTS TO PETER LUND EXECUTIVE VICE PRESIDENT OF THE BROADCAST GROUP WHO LAST WEEK ADDED THE TITLE OF PRESIDENT OF THE CBS TELEVISION NETWORK MR PILSON 52 YEARS OLD HEADED CBS SPORTS FROM 1981 TO 1983 AND AGAIN FROM 1986 OVERSEEING IT IN BETWEEN AS WELL IN AN ILLFATED STRATEGY TO USE MAJOR SPORTS EVENTS TO BRING BACK PRIMETIME VIEWERS CBS WENT ON A 366 BILLION SPENDING SPREE IN THE LATE 1980S BUYING BASEBALL FOOTBALL AND WINTER OLYMPICS RIGHTS WHEN THE ADVERTISING RECESSION HIT CBS TOOK ABOUT 600 MILLION IN SPORTSRELATED LOSSES IN 1990 AND 1991 SINCE THEN CBS LOST BASEBALL WHICH MOVES TO CAPITAL CITIES/ABC INC AND GENERAL ELECTRIC CO'S NBC THIS SEASON IN A RADICAL REVENUESHARING DEAL IN DECEMBER CBS LOST THE NATIONAL FOOTBALL LEAGUE PACKAGE IT HAD TELEVISED FOR 38 YEARS WHEN IT WAS OUTBID BY NEWS CORP'S FOX THE OLYMPICS RIGHTS PANNED OUT HOWEVER WITH THE 1994 GAMES SETTING VIEWING RECORDS IN ANOTHER PENDING CHANGE AT CBS SPORTS MARK HARRINGTON THE VICE PRESIDENT IN CHARGE OF OLYMPICS COVERAGE IS EXPECTED TO BE NAMED TO A NEW POST OVERSEEING CBS'S ENTRY INTO NEW MEDIA 9403210158 940321 PEPPERAND SALT AND BRIEF APPLAUSE WAS THEN JUST A SPORT SPEAKING OF NOSTALGIA REMEMBER WHEN PEOPLE STEPPED OUTSIDE RATHER THAN INSIDE FOR A BREATH OF FRESH AIR 9403210157 940321 ECONOMY CHIP REPORT EASES USJAPAN CONFLICT BUT OTHER POSSIBLE TRADE SPATS LOOM BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US TRADE BATTLE WITH JAPAN EASED SOMEWHAT AS JAPAN REPORTED THAT IMPORTS OF COMPUTER CHIPS ROSE AND WASHINGTON WAITED FOR TOKYO TO UNVEIL MARKETOPENING INITIATIVES STILL NEITHER SIDE IS READY TO DECLARE A TRUCE US TRADE OFFICIALS ARE PREPARING A THICK REPORT ON FOREIGN TRADE PRACTICES DUE TO BE RELEASED NEXT WEEK WHICH WILL HIGHLIGHT JAPANESE TRADE BARRIERS THE US COULD TARGET THOSE BARRIERS FOR NEGOTIATIONS AND EVENTUALLY TRADE SANCTIONS IT'S A MAP FOR JAPAN US TRADE REPRESENTATIVE MICKEY KANTOR SAID IN AN INTERVIEW IT'S A ROAD MAP FOR THEM TO FOLLOW MR KANTOR SAID JAPAN HAS TO PRESENT A BOLD AND AGGRESSIVE PACKAGE OF TRADE INITIATIVES BY THE END OF THE MONTH IF IT WANTS THE US TO RESUME NEGOTIATIONS OVER FAILED FRAMEWORK TALKS BUT KIYOHIKO NANAO ECONOMIC MINISTER AT THE JAPANESE EMBASSY IN WASHINGTON WARNED AGAINST UNDULY HIGH EXPECTATIONS CONCERNING THE PACKAGE AND SAID ONLY A PORTION OF IT MAY BE READY BY MARCH 31 IN TOKYO JAPANESE OFFICIALS HAD SOME TOUGH TALK OF THEIR OWN JAPAN THREATENED TO RETALIATE IN A CIVILAVIATION DISPUTE WITH THE US AN ARGUMENT THAT TOOK A TURN FOR THE WORSE LAST WEEK WHEN THE US WITHHELD PERMISSION FOR A NEW JAPAN AIRLINES ROUTE TO HONOLULU WITH JUST TWO DAYS' NOTICE TRANSPORTATION MINISTRY OFFICIALS TOLD JAPANESE REPORTERS THAT JAPAN WILL ACCELERATE ITS OWN REVIEW OF SEVEN TRANSPACIFIC AIR ROUTES WIDELY USED BY US CARRIERS IMPLICIT IN THE REVIEW IS THE THREAT THAT JAPAN COULD WITHHOLD APPROVAL OF THESE ROUTES MINISTRY OFFICIALS COULDN'T BE REACHED FOR A COMMENT FOR THE MOMENT THOUGH THE US AND JAPAN HAVE BACKED AWAY FROM CONFRONTATION ON TWO IMPORTANT FRONTS REGARDING SEMICONDUCTORS JAPAN REPORTED THAT THE FOREIGN SHARE OF ITS CHIP MARKET TOPPED 20 IN 1993'S FOURTH QUARTER THE SHARE WAS 207 WHEN CALCULATED BY THE FORMULA PREFERRED BY THE US GOVERNMENT AND 221 USING THE FORMULA PREFERRED BY JAPAN THE LATTER FORMULA INCLUDES CHIPS PRODUCED FOR INTERNAL CONSUMPTION BY SUCH COMPANIES AS INTERNATIONAL BUSINESS MACHINES CORP FIGURES FOR THE VALUE OF CHIP SALES WEREN'T RELEASED AND ON MEDICAL EQUIPMENT THE US SAID IT EXPECTS A SPEEDY RESOLUTION OF A DISPUTE INVOLVING THE SALE OF ADVANCED MEDICAL DEVICES IN JAPAN US OFFICIALS HAD EARLIER SAID THEY PLANNED TO FILE AN OFFICIAL COMPLAINT WITH THE JAPANESE GOVERNMENT OVER AN ALLEGED FAILURE TO PROMPTLY INFORM THE US ABOUT IMPENDING PRICE CONTROLS ON MEDICAL EQUIPMENT ON FRIDAY HOWEVER A SPOKESMAN AT THE US EMBASSY IN TOKYO SAID THE US EXPECTS A QUIET SOLUTION TO THIS ISSUE EARLY THIS WEEK IN RECENT YEARS SEMICONDUCTORS HAVE PLAYED A CENTRAL ROLE IN USJAPANESE TRADE RELATIONS PRODUCING A SERIES OF TRADE PACTS SEEKING TO ENSURE THAT FOREIGN CHIP MAKERS GET AT LEAST 20 OF THE JAPANESE MARKET IMPORTS FINALLY REACHED THAT GOAL IN THE FOURTH QUARTER OF 1992 HELPING TO CONVINCE THE CLINTON ADMINISTRATION THAT IT MUST INSIST ON SPECIFIC SALES GOALS WHEN NEGOTIATING WITH JAPAN THAT RESULTSORIENTED APPROACH GUIDED THE US IN ITS RECENT FAILED EFFORTS TO REACH A BROAD TRADE PACT WITH JAPAN BUT JAPAN HAS ALSO TURNED THE SEMICONDUCTOR PACT TO ITS PURPOSES SAYING US DEMANDS AMOUNT TO GOVERNMENTCONTROLLED OR MANAGED TRADE OTHER COUNTRIES IN ASIA AND EUROPE HAVE PICKED UP ON THAT LINE AND HAVE USED IT TO ATTACK THE FRAMEWORK TALKS NOW THE US NO LONGER TRUMPETS THE SEMICONDUCTOR ACCORD EVEN THOUGH THE PHILOSOPHY BEHIND THE CHIP PACT STILL ANIMATES US POLICY LAST YEAR AFTER THE 20 MARK WAS REACHED IN 1992'S FOURTH QUARTER MR KANTOR HELD A NEWS CONFERENCE AND SAID HE WANTED FOREIGN CHIP SALES IN JAPAN TO AVERAGE 20 FOR THE FULL YEAR THIS YEAR AFTER JAPAN HIT THE 20 NUMBER AGAIN IN THE 1993 FOURTH QUARTER THE US SIMPLY PUT OUT A TWOPARAGRAPH NEWS RELEASE SAYING IT WAS CONCERNED THAT FOREIGN CHIP MAKERS DON'T HAVE FULL ACCESS TO THE JAPANESE MARKET IN THE INTERVIEW MR KANTOR WENT OUT OF HIS WAY TO AVOID NAMING ANY MORE NUMERICAL TARGETS THE AGREEMENT DOESN'T SAY BEYOND 20 ANY PARTICULAR NUMBER HE SAID FROM THIS AND OTHER ACTIONS THE US IS TRYING TO ASSURE JAPAN THAT WASHINGTON WON'T INSIST ON SPECIFIC SALES GOALS IN THE FRAMEWORK TALKS DURING THE FAILED NEGOTIATIONS THE US POSITION DID CONTAIN SUCH GOALS BUT US OFFICIALS HAVE SUBSEQUENTLY SAID PRIVATELY THAT THEY EXPECTED TO BARGAIN OVER THEM JAPAN HOWEVER REFUSED TO DISCUSS THE NUMBERS FEARING THAT WOULD PUSH TOKYO INTO SETTING SOME KIND OF SALES TARGET FOR ITS PART THE SEMICONDUCTOR INDUSTRY OF AMERICA WAS READY TO PROCLAIM NEW SEMICONDUCTOR GOALS FOR ALL OF 1993 THE SIA SAID FOREIGN COMPANIES HAD 194 OF THE JAPANESE MARKET UP 27 PERCENTAGE POINTS FROM 1992 FOR THIS YEAR THE SIA SAID IT WANTED TO SEE A MARKETSHARE INCREASE COMPARABLE TO LAST YEAR'S THAT WOULD INDICATE A 1994 TARGET OF ABOUT 22 US COMPANIES ACCOUNT FOR ABOUT 85 OF FOREIGN SEMICONDUCTOR SALES IN JAPAN THE US INDUSTRY HAS BEEN UPSET BECAUSE THE INCREASED FOREIGN SHARE IN JAPAN FOR THE FOURTH QUARTER FOLLOWS THREE CONSECUTIVE QUARTERS OF DECLINE THE SHARE WAS 181 FOR THE THIRD QUARTER DURING EMERGENCY CHIP TALKS CALLED BY THE US EARLIER THIS YEAR JAPAN REBUFFED US CALLS FOR A RUSH CHIPBUYING PROGRAM BY JAPANESE COMPANIES SAYING THAT THE FALL IN FOREIGN SHARE PRIOR TO THE FOURTH QUARTER WAS PART OF THE NORMAL FLUCTUATIONS OF THE MARKET JAPANESE INDUSTRY EXECUTIVES ECHOED THAT VIEW OVER THE WEEKEND AND EVEN HINTED THAT THEY'RE STILL NOT CONVINCED FOREIGN COMPANIES ARE WORKING HARD ENOUGH FOR THEIR SHARE OF THE MARKET WHILE JAPANESE COMPANIES WILL CONTINUE COOPERATING WITH THEIR FOREIGN SUPPLIERS WE ALSO CANNOT IGNORE THE NEED FOR FURTHER EFFORTS BY FOREIGN SUPPLIERS TO EXPAND THEIR BUSINESS SAID HIDEKO YOSHIDA A TOSHIBA CORP EXECUTIVE WHO HEADS THE INDUSTRY GROUP CHARGED WITH PROMOTING USE OF FOREIGN SEMICONDUCTORS THE FLUCTUATION IN THE MARKETSHARE NUMBERS SUGGESTS THAT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY HAD A STRONG HAND IN THE RESULTS FOR THE PAST TWO YEARS THE NUMBERS HAVE REMAINED LOW IN THE FIRST THREE QUARTERS ONLY TO SURGE IN THE POLITICALLY SENSITIVE FOURTH QUARTER TO MAKE MATTERS ODDER SAID DARYL HATANO VICE PRESIDENT OF THE SIA JAPANESE SALES OF CONSUMER ELECTRONICS CHIPS WHERE FOREIGN COMPANIES ARE WEAK SHOULD RISE IN THE FOURTH QUARTER IF ANYTHING THAT SHOULD DEPRESS FOREIGN SHARE JAPANESE COMPANIES SAY THE FLUCTUATIONS FROM QUARTER TO QUARTER REPRESENT BOTH THE GROWTH RATE OF THE JAPANESE MARKET AND INDIVIDUAL COMPANIES BUT MR HATANO SAID THAT JAPANESE COMPANIES KNOW QUICKLY WHEN THIRDQUARTER PURCHASES SLUMP AND CAN TURN UP THEIR PURCHASES THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY TOLD US THEY ENCOURAGE JAPANESE COMPANIES TO BUY MORE AND THE JAPANESE COMPANIES DID BUY MORE HE SAID OFFICIALS AT MITI HAVE ALSO BEEN PROMINENT IN ATTACKING US NEGOTIATORS FOR INSISTING ON MANAGED TRADE DAVID P HAMILTON IN TOKYO CONTRIBUTED TO THIS ARTICLE 9403210156 940321 SOROS TO FINANCE EMERGENCY AID FOR MACEDONIA BY ERNEST BECK SPECIAL TO THE WALL STREET JOURNAL BUDAPEST INTERNATIONAL FINANCIER GEORGE SOROS PLANS TO FINANCE A 4 MILLION EMERGENCY AID PACKAGE FOR MACEDONIA TO HELP STAVE OFF THE COUNTRY'S ECONOMIC COLLAPSE OFFICIALS REPRESENTING MR SOROS'S PHILANTHROPIC ORGANIZATION SAID THE AID PROGRAM TO BE ANNOUNCED ON TUESDAY IN SKOPJE MACEDONIA WILL GO TOWARD PURCHASING GRAIN TO FEED LIVESTOCK AND THAT ADDITIONAL FUNDS MIGHT BE FOUND TO FLY OUT AN EARLY CROP OF SPRING VEGETABLES TO WESTERN MARKETS THE PROGRAM IS BEING ORGANIZED BY MR SOROS AND ISN'T CONNECTED TO THE SOROS FOUNDATION'S OPERATING BUDGET SUPPLY ROUTES TO MACEDONIA ARE BEING HAMPERED BY GREECE'S DECISION LAST MONTH TO CLOSE ITS BORDERS WITH THE FORMER YUGOSLAV REPUBLIC AND TO CUT THE LANDLOCKED NATION'S ACCESS TO THE GREEK PORT OF SALONIKA THE GATEWAY FOR 70 OF MACEDONIA'S GOODS GREECE IMPOSED THE BLOCKADE AFTER MACEDONIA REFUSED TO GIVE INTO A LIST OF DEMANDS BY ATHENS INCLUDING CHANGING THE COUNTRY'S NAME GREECE SAYS USE OF THE NAME MACEDONIA IMPLIES TERRITORIAL AMBITIONS ON THE NORTHERN GREEK PROVINCE OF THE SAME NAME MR SOROS SAID IN A TELEPHONE INTERVIEW THAT HE HOPES THE AID WILL DRAW ATTENTION TO THE MACEDONIA ISSUE AND SPUR THE EUROPEAN UNION AND THE US TO PRESSURE GREECE TO LIFT THE EMBARGO MR SOROS DESCRIBED THE EMBARGO AS AN ACT OF BLACKMAIL BY ATHENS AND SAID IT WAS SHAMEFUL THAT THE EU AND WASHINGTON HAVE GIVEN IN TO IT MACEDONIA IS A MULTIETHNIC STATE WITH A MODERATE GOVERNMENT THAT IS IN DANGER OF BEING TORN APART BY EXTREMISTS IF THE EMBARGO CONTINUES MR SOROS SAID THIS COULD IGNITE A WIDER CONFLICT DRAWING IN NEIGHBORING COUNTRIES THAT COULD BECOME A SECOND BOSNIA THE PACKAGE CONSISTS OF A 25 MILLION LOWINTEREST LOAN TO MACEDONIA TO BUY 20000 TONS OF GRAIN FROM TURKEY ALONG WITH A PERSONAL GIFT OF 15 MILLION FROM MR SOROS TO FINANCE TRANSPORTING THE FEED BY SHIP TO BULGARIA AND THEN BY TRUCK TO MACEDONIA ADDITIONAL FUNDS MIGHT BE MADE AVAILABLE BY MR SOROS TO CHARTER PLANES TO BRING 600 TONS OF MACEDONIAN CUCUMBERS AND TOMATOES TO VIENNA WHERE THEY WILL BE SOLD MACEDONIA'S ECONOMY IS BEING SQUEEZED ON TWO FRONTS IN ADDITION TO THE GREEK BLOCKADE IT HAS BEEN HIT BY UNITED NATIONS SANCTIONS AGAINST NEIGHBORING SERBIA A MAJOR TRADING PARTNER THE RESULT IS FUEL SHORTAGES FACTORY CLOSINGS AND RECENTLY THE SLAUGHTER OF LIVESTOCK BECAUSE FREIGHTERS CARRYING FEED ARE BLOCKED IN SALONIKA THE MACEDONIAN GOVERNMENT SAYS LOSSES DUE TO THE GREEK EMBARGO ALONE AMOUNT TO 80 MILLION A MONTH OUR PEOPLE ARE SUFFERING AND THE CONSEQUENCES OF A PROLONGED GREEK EMBARGO COULD BE TERRIBLE SAID MACEDONIA'S PRESIDENT KIRO GLIGOROV IN A TELEPHONE INTERVIEW HUNGARIANBORN MR SOROS RUNS SOROS FUND MANAGEMENT A SUCCESSFUL HEDGE FUND IN ADDITION TO FINANCING 22 FOUNDATIONS IN EASTERN EUROPE AND SOUTH AFRICA THAT PROMOTE CULTURAL EDUCATIONAL HEALTH AND INDEPENDENT MEDIA ACTIVITIES 9403210155 940321 INTERNATIONAL IBERIA TO BOOST STAKE IN AIRLINE OF ARGENTINA BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID IBERIA AIR LINES AGREED TO A 500 MILLION BAILOUT PLAN FOR AEROLINEAS ARGENTINAS SA A MOVE EXPECTED TO RAISE IBERIA'S STAKE IN THE ARGENTINE FLAGSHIP CARRIER TO 85 FROM 30 PEOPLE CLOSE TO THE NEGOTIATIONS SAID THE AGREEMENT WHICH ENDS TWO YEARS OF ACRID NEGOTIATIONS BETWEEN ARGENTINA AND IBERIA HELPS CONSOLIDATE THE SPANISH FLAGSHIP CARRIER'S LATIN AMERICAN STRATEGY VIEWED BY ANALYSTS AS KEY TO THE COMPANY'S FUTURE THE PACT ALSO INCREASES THE POSSIBILITY OF IBERIA'S REACHING AN ALLIANCE WITH OTHER AIRLINES THAT WILL HELP IT SURVIVE INTERNATIONAL COMPETITION MINISTRY OFFICIALS SAID IBERIA WANTS TO FORGE AN ALLIANCE WITH UNITED AIRLINES AND GERMANY'S LUFTHANSA A DOMINANT MARKET POSITION IN ARGENTINA WILL GIVE IBERIA A BARGAINING CHIP IN NEGOTIATIONS TO REACH A PACT THAT WOULD GIVE THOSE THREE COMPANIES A FOOTHOLD IN LATIN AMERICA EUROPE AND ASIA OFFICIALS SAID UNDER AN ACCORD REACHED WITH THE ARGENTINE GOVERNMENT IBERIA PLEDGED TO CONVERT 400 MILLION OF AEROLINEAS DEBT INTO CAPITAL IBERIA WHICH CURRENTLY MANAGES AEROLINEAS ALSO WILL INJECT UP TO 100 MILLION INTO ITS ARGENTINE UNIT IBERIA OFFICIALS WERE UNAVAILABLE TO COMMENT THE SIZE OF IBERIA'S STAKE IN AEROLINEAS WILL DEPEND ON WHETHER OTHER SHAREHOLDERS INCLUDING SPAIN'S BANCO CENTRAL HISPANO AND BANCO ESPANOL DE CREDITO AGREE TO SUBSCRIBE TO THE CAPITAL INCREASE TOGETHER THESE BANKS OWN 27 OF AEROLINEAS WITH THE BULK HELD BY BCH AND BANESTO OFFICIALS SAID HOWEVER THE TWO BANKS AREN'T EXPECTED TO INJECT MORE FUNDS INTO THE ARGENTINE CARRIER THE AGREEMENT WHICH ENABLES THE ARGENTINE GOVERNMENT TO SLASH ITS STAKE IN AEROLINEAS TO 15 FROM 43 EASES DIPLOMATIC TENSIONS THAT ERUPTED BETWEEN THE TWO COUNTRIES FROM ARGENTINA'S EARLIER REFUSAL TO INJECT STATE FUNDS INTO ITS AILING AIRLINES A 10 STAKE WILL BE HANDED TO AEROLINEAS EMPLOYEES REDUCING THE GOVERNMENT'S HOLDING TO 5 SOURCES SAID WITH DEBTS OF 700 MILLION AND LOSSES OF 220 MILLION LAST YEAR AEROLINEAS HAS BEEN A DRAG ON THE SPANISH CARRIER ITS BIGGEST CREDITOR DISAGREEMENTS BETWEEN IBERIA AND ARGENTINA OVER WHICH OF THE TWO SHOULD BAIL OUT AEROLINEAS CAST DOUBT ON THE ARGENTINE CARRIER'S FUTURE PARTICULARLY AS THE AIR INDUSTRY DEALS WITH RECESSION LAST WEEK'S ACCORD WAS REACHED AFTER ARGENTINA PLEDGED TO MAINTAIN AEROLINEAS AS A FLAGSHIP CARRIER EVEN THOUGH THE GOVERNMENT WILL NO LONGER HAVE A MAJORITY STAKE THAT MEANS BUENOS AIRES WILL CONTINUE NEGOTIATING WITH OTHER GOVERNMENTS FOR AEROLINEAS'S LANDING RIGHTS AND ACCESS TO INTERNATIONAL ROUTES SIMILARLY ARGENTINA RENOUNCED ITS RIGHT TO VETO MANAGEMENT DECISIONS AGREEING TO LET IBERIA ADAPT AN AMBITIOUS INVESTMENT PLAN TO THE MARKET'S CURRENT CONDITIONS 9403210154 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT THE GAMES WE PLAY NOT NEW BUT IMPROVED VIDEOGAME MAKERS ARE USING TECHNOLOGY TO MAKE THEIR GAMES FASTER AND SHARPER NOW IF ONLY THEY COULD COME UP WITH SOMETHING ORIGINAL BY THOMAS E WEBER VIDEOGAME MAKERS HAVE BEEN IN THE FOREFRONT OF EMBRACING NEW MULTIMEDIA TECHNOLOGIES AND THEIR GAMES HAVE NEVER LOOKED BETTER FASTER SHARPER MORE DETAILED THEY'RE UNLIKE ANYTHING THAT HAS COME BEFORE EXCEPT THEY ARE ALSO LIKE EVERYTHING THAT HAS COME BEFORE AND THAT'S THE PROBLEM TAKE AWAY THE GLITTER AND MOST OF TODAY'S GAMES ARE NOTHING BUT DRESSEDUP RETELLINGS OF YESTERDAY'S HITS IT SHOULDN'T BE THAT WAY WITH THE LATEST HIGHTECH TRICKS AND THE CREATIVE RESOURCES OF THE ENTERTAINMENT INDUSTRY AT THEIR DISPOSAL CRITICS SAY GAME COMPANIES OUGHT TO BE GIVING PLAYERS NEW ALONG WITH IMPROVED THERE'S LITTLE DOUBT THAT THE NEW TECHNOLOGY HAS GIVEN THE GAME MAKERS A LOT MORE TO PLAY WITH A BIG BOOST HAS COME FROM CDROM PLAYERS WHICH ARE BEING INCORPORATED INTO COMPUTERS AND SOME GAME MACHINES CDROMS GIVE GAMES THE STORAGE CAPACITY TO USE FULLCOLOR HIGHRESOLUTION VIDEO IMAGES WHILE ADVANCES IN DATA COMPRESSION MEAN MOREFLUID MOVING IMAGES A FUTURE CRYSTAL DYNAMICS GAME CALLED THE HORDE WILL FEATURE KIRK CAMERON THE ACTOR WHO STARRED IN THE TELEVISION SERIES GROWING PAINS BUT INSTEAD OF SHRINKING MR CAMERON INTO ONE OF THE ELECTRONIC SPRITE CARTOON CHARACTERS SEEN IN MOST VIDEO GAMES THE HORDE WILL OFFER MOVIESTYLE CLIPS OF THE ACTOR THE CAPACITY OF CDROM ALSO GIVES GAME DESIGNERS ACCESS TO HIGHQUALITY STEREO SOUND AND MORE STORAGE SPACE MEANS MORE PERMUTATIONS A WARRIOR'S EXPLORATION OF A DUNGEON CAN NOW ENCOMPASS HUNDREDS OF DIFFERENT ROOMS FOR INSTANCE RATHER THAN JUST A FEW THE BRAINS INSIDE VIDEO GAMES ARE BECOMING MORE POWERFUL TOO THE ORIGINAL GAME UNIT FROM NINTENDO CO OF JAPAN WAS BASED ON AN EIGHTBIT PROCESSOR IN WHICH THE DEVICE'S COMPUTER CHIP WORKS ON DATA EIGHT BITS OR PIECES AT A TIME THE NEXT GENERATION THE SUPER NINTENDO AND SEGA ENTERPRISES LTD'S GENESIS MOVED UP TO 16BIT PROCESSORS NOW MACHINES BASED ON FORMATS CREATED BY 3DO CO OF REDWOOD CITY CALIF USE 32BIT CHIPS AND ATARI CORP SUNNYVALE CALIF RECENTLY INTRODUCED A 64BIT MACHINE CALLED JAGUAR MEANWHILE SOUPEDUP PROCESSORS MEAN MORE SPEED MORE COLORS MILLIONS VS HUNDREDS IN OLDER GAMES AND MORE DETAIL AND SPECIALIZED CHIPS HELP OUT BY PERFORMING THE COMPLEX CALCULATIONS NEEDED TO ROTATE OBJECTS AND BACKGROUNDS AND TO PROVIDE THREEDIMENSIONAL PERSPECTIVE ALL OF THOSE CAPABILITIES ADD UP TO A MORE REALISTIC EXPERIENCE WHETHER THE GAME IN QUESTION IS A FLIGHT SIMULATOR BASKETBALL MATCH OR NINJA DUEL THE MORE COMPUTING POWER THE MORE POTENTIAL FOR A GREAT GAME THAT WAS UNDERSCORED BY SEGA'S INTRODUCTION OF THE 16BIT GENESIS GAME SONIC THE HEDGEHOG IN 1991 A GAME THAT ENDED NINTENDO'S MONOPOLY AT ITS HEART THOUGH SONIC IS SIMPLY A WELLEXECUTED RENDITION OF WHAT'S KNOWN AS A SCROLLING GAME WHICH ESSENTIALLY INVOLVES MOVING A CHARACTER FROM THE LEFT OF THE SCREEN TO THE RIGHT AS DIFFERENT BACKGROUNDS SCROLL BY PICTURES MAY BE PRETTIER AND OBSTACLES MAY BE TOUGHER BUT THE 16BIT SONIC IS BASICALLY A FANCY VERSION OF SUPER MARIO BROS THE GAME THAT DROVE SALES OF THE ORIGINAL EIGHTBIT NINTENDO DESIGNERS AND INDUSTRY OBSERVERS SAY IT WON'T BE EASY TO MOVE BEYOND THE STAPLE GENRES OF SCROLLING GAMES ARCADESTYLE SHOOT'EMUPS AND SPORTS GAMES BUT THIS MAY BE NECESSARY IN ORDER TO ATTRACT OLDER PLAYERS AND WOMEN TO A PASTIME MOSTLY PLAYED BY YOUNG BOYS THIS IS SOMETHING WE STRUGGLE WITH A LOT SAYS WILL WRIGHT CREATOR OF SIM CITY ONE OF THE FEW GAMES IN RECENT MEMORY TO PIONEER A NEW GENRE WRITTEN FIRST FOR PERSONAL COMPUTERS THEN REDONE FOR A SUPER NINTENDO CARTRIDGE SIM CITY MADE BY MAXIX OF ORINDA CALIF PUTS THE PLAYER IN CHARGE OF DEVELOPING A NEW TOWN ZONING MUST BE DECIDED TAX RATES SET AND ROADS BUILT POOR CHOICES WILL PROMPT SOME OF THE SIM INHABITANTS TO MOVE AWAY WEAKENING THE TAX BASE AND MAKING PROBLEMS WORSE SIM CITY HAS SPAWNED A NUMBER OF SEQUELS INCLUDING SIM EARTH WHICH GIVES PLAYERS CONTROL OF THE GLOBAL CLIMATE MR WRIGHT IS NONCHALANT ABOUT THE SUCCESS OF THE GENRE HE CREATED I'D LIKE TO BREAK OUT OF IT HE SAYS HE HOPES THAT NEW TECHNOLOGY SYSTEMS WILL ALLOW MORE GAME DESIGNERS TO DEFY GENRE CATEGORIZATIONS WE'RE STILL PRETTY IGNORANT OF HOW TO USE THIS MEDIUM MR WRIGHT SAYS AT WIRED MAGAZINE A TECHNOLOGY MONTHLY IN SAN FRANCISCO MANAGING EDITOR JOHN BATELLE IS ALSO ON THE LOOKOUT FOR IMAGINATIVE GAMES TO REPLACE THE SCROLLING STANDBYS SCROLLING GAMES WHILE THEY HAVEN'T HIT THEIR END HAVE HIT THEIR MATURITY LEVEL IN REALISM MR BATELLE SAYS FURTHER IMPROVEMENTS IN TECHNOLOGY MIGHT ALLOW PLAYERS TO SUBSTITUTE DIGITIZED PICTURES OF THEMSELVES IN THE PLACE OF SONIC OR MARIO BUT MR BATELLE WONDERS WOULD THAT REALLY BE CAPTIVATING ONE PROMISING CDROM GAME CITED BY MR BATELLE MYST PUBLISHED BY BRODERBUND SOFTWARE INC OF NOVATO CALIF FOR APPLE MACINTOSH COMPUTERS MYST IS AN ANIMATED JOURNEY THROUGH FANTASTIC WORLDS EACH OF WHICH HAS PUZZLES THAT MUST BE SOLVED UNLIKE MOST GAMES WHICH DEMAND THAT PLAYERS OVERCOME ONE OBSTACLE BEFORE MOVING ON TO ANOTHER MYST ALLOWS PLAYERS TO CHOOSE THEIR OWN PATHS THROUGH THE IMAGINARY WORLD THE GAME ALSO HAS BEEN LAUDED FOR ITS DETAILED IMAGES WHICH ARE COMPUTERCREATED RATHER THAN VIDEOTAPED AND LUSH SOUND IT'S JUST ENOUGH TO TRIP YOUR MIND INTO BELIEVING YOU'RE THERE SAYS MR BATELLE IT'S A FIRST STEP TOWARD TRYING TO CREATE A NEW SENSE OF ENTERTAINMENT WE'RE DEVELOPING A NEW STORYTELLING HERE A NEW WAY OF INTERACTING WITH A STORY MANY GAME DEVELOPERS ARE LOOKING FORWARD TO YET ANOTHER TECHNOLOGICAL INNOVATION NETWORKED VIDEO GAMES WHICH ALLOW PLAYERS TO SIT IN THEIR HOMES AND GO HEADTOHEAD WITH OTHER PLAYERS ALL LINKED BY TELEPHONE OR CABLETELEVISION LINES THIS ALREADY IS POSSIBLE WITH A FEW GAMES MOST NOTABLY SAN FRANCISCOBASED VELOCITY DEVELOPMENT CORP'S SPECTRE SERIES SPECTRE IS A STRAIGHTFORWARD TANKCOMBAT SIMULATION GAME WITH BOXY GRAPHICS BUT IT ALLOWS MANY PLAYERS ON A COMPUTER NETWORK TO PARTICIPATE AT ONCE DEDICATED GAMERS ALSO CAN PLUG INTO HEADTOHEAD COMPETITION THROUGH THE IMAGINATION NETWORK AN ONLINE SERVICE OF SIERRA ONLINE INC BELLEVUE WASH THAT LETS PERSONALCOMPUTER USERS SLUG IT OUT AT EVERYTHING FROM CARD GAMES TO A RED BARON AERIAL DOGFIGHT AND AMERICAN TELEPHONE & TELEGRAPH CO PLANS A SERVICE THAT WILL LET 3DO PLAYERS LINK THEIR MACHINES VIA PHONE LINES AND PLAY EACH OTHER ANOTHER TWIST THE SERVICE WILL LET PLAYERS TALK WITH EACH OTHER WHILE THEY ARE PLAYING IT'S A DRAMATIC SHIFT SAYS JACK SORENSON GENERAL MANAGER OF LUCASARTS ENTERTAINMENT THE SAN RAFAEL CALIF COMPUTERGAME AND VIDEOGAME PORTION OF FILMMAKER GEORGE LUCAS'S ENTERTAINMENT BUSINESSES YOU GO FROM THAT INDIVIDUAL NERDY GEEKY IMAGE TO INTERACTIVE PEOPLE ARE COMPLETELY UNPREDICTABLE WHEREAS COMPUTERS ARE JUST PROGRAMMED AFTER NETWORKING THE BIG STEP FORWARD IS LIKELY TO BE THE INCORPORATION OF VOICERECOGNITION TECHNOLOGY GAME DESIGNERS EXPECT THE ABILITY TO SIT ON THE COUCH AND ORDER A CHARACTER THROUGH A FICTIONAL WORLD TO CREATE AN EXPERIENCE AKIN TO BECOMING PART OF A MOTION PICTURE IMAGINE A CRIME DRAMA IN WHICH THE BUMBLING DETECTIVE WOULD HEAR AND OBEY SUCH INSIGHTS AS NO NO NO LOOK BEHIND THE DRAPES OF COURSE GAMES ARE MORE THAN JUST TECHNOLOGY AS IMAGES AND SOUND BECOME MORE TRUETOLIFE AND THE LEVEL OF INTERACTIVITY INCREASES THE DEMAND FOR A REALISTIC OVERALL EXPERIENCE WILL GROW INCREASINGLY THE PREMISE AND STORY OF A GAME WILL NEED TO KEEP PACE WITH THE TECHNOLOGICAL FACADE THAT'S WHERE HOLLYWOOD BECOMES IMPORTANT SPECTRUM HOLOBYTE INC A GAME MAKER IN ALAMEDA CALIF IS DEVELOPING GAME TITLES BASED ON PARAMOUNT'S POPULAR STAR TREK THE NEXT GENERATION TELEVISION SERIES FOR RON MARTINEZ VICE PRESIDENT OF CREATIVE DEVELOPMENT FOR SPECTRUM THE STAR TREK LICENSING AGREEMENT PROVIDES MORE THAN ACCESS TO A HOT PROPERTY IT ALSO BRINGS IN THE PEOPLE BEHIND THAT PROPERTY NOW A DIFFERENT RANGE OF TALENTS IS BEING ATTRACTED TO THE GAME MEDIUM MR MARTINEZ SAYS ON STAR TREK' WE CAN WORK WITH PEOPLE WHO ARE THE SCREENWRITERS THE STORY EDITORS THE GUY WHO DESIGNED HOW THE STARSHIP ENTERPRISE LOOKS THE COMPANY'S MOST AMBITIOUS PROJECT UNDER THE STAR TREK LICENSE IS A CDROM GAME FOR THE 3DO PLAYER THE GAME DOESN'T USE TRADITIONAL CHARACTER SPRITES BUT NEITHER DOES IT RELY ON OCCASIONAL LIVEACTION CLIPS INSTEAD IT INCORPORATES DETAILED THREEDIMENSIONAL RENDERINGS OF THE STAR TREK CREW COMBINED WITH VOICE RECORDINGS TO PRODUCE WHAT SOME INDUSTRY BUFFS ARE ALREADY LABELING VIRTUAL ACTORS OR VACTORS FOR SHORT STAR TREK ALSO BRINGS ANOTHER ASSET TO ANY GAME THE DEPTH OF ITS FICTIONAL WORLD OVER THE COURSE OF MANY EPISODES THE SERIES HAS PORTRAYED AN ALTERNATIVE UNIVERSE WITH ITS OWN RULES ORGANIZATIONS AND SCIENCE IN THAT ASPECT STAR TREK STAR WARS AND A FEW OTHER MOVIES AND TELEVISION SHOWS GIVE THE GAME DESIGNER A MULTITUDE OF DETAILS TO MAKE A GAME MORE REALISTIC WHILE AT THE SAME TIME GIVING THE DESIGNER ROOM TO OPERATE SAYS STEVE BLANK PRESIDENT OF ROCKET SCIENCE GAMES INC A PALO ALTO CALIF STARTUP LAUNCHED LAST YEAR BY ENGINEERS FROM APPLE COMPUTER WHAT MAKES A GOOD INTERACTIVE GAME IS NOT NECESSARILY A MOVIE BUT A MOVIE ENVIRONMENT LIKE STAR WARS' OR STAR TREK' MR BLANK SAYS ONE CAN DO A STAR WARS' GAME THAT DOESN'T HAVE ANYTHING TO DO WITH THE MOVIE'S PLOT MR WEBER IS A REPORTER FOR THE DOW JONES NEWS SERVICE IN NEW YORK 9403210153 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT ALTERED STATES SLIM PICKINGS MOST CDROMS AREN'T WORTH THE TIME IT TAKES TO WATCH THEM BUT THERE ARE EXCEPTIONS BY JOAN RIGDON YOU BOUGHT A COMPACTDISK DRIVE FOR YOUR COMPUTER AND YOU HAVE JUST FIRED UP YOUR FIRST CDROM PROGRAM YOU EXPECT SOMETHING MINDTRANSFORMING A VIRTUALREALITY TRIP TO A THREEDIMENSIONAL WORLD UNLIKE ANYTHING YOU HAVE EVER EXPERIENCED ON YOUR HOME COMPUTER INSTEAD YOU GET REAMS OF TEXT WITH A FEW PICTURES VIDEO CLIPS AND SOUND BYTES DROPPED IN WELCOME TO THE WORLD OF CDROM AS MANY CONSUMERS ARE DISCOVERING THE REALITY IS NOWHERE NEAR THE HYPE AFTER YEARS OF CHANTING MULTIMEDIA LIKE A MANTRA MANY SOFTWARE PUBLISHERS HAVE INSTEAD PUBLISHED DRY PATCHWORKS OF TEXT SOUND AND VIDEO AN AWFUL LOT OF COMPANIES ARE SHUTTLING STUFF ONTO CDS JUST BECAUSE CDS CAN HOLD A LOT OF INFORMATION SAYS NICK ARNETT PRESIDENT OF MULTIMEDIA COMPUTING CORP A CONSULTING FIRM IN CAMPBELL CALIF AS A RESULT THERE'S A LOT OF BAD QUALITY SOFTWARE BUT THERE ARE EXCEPTIONS AND WE SET OUT TO FIND THEM THE WALL STREET JOURNAL ASKED SEVERAL CDROM PRODUCERS AND EXPERTS TO NOMINATE TITLES THAT THEY THINK MAKE THE BEST USE OF THE TECHNOLOGY THE EXECUTIVES WEREN'T ALLOWED TO NOMINATE ANYTHING MADE OR DISTRIBUTED BY THEIR OWN COMPANIES HERE ARE THEIR PICKS MYST BRODERBUND SOFTWARE INC NOVATO CALIF ALMOST EVERYONE RAVES ABOUT THIS TITLE IN IT YOU SEARCH RICHLY DETAILED 3D LANDSCAPES FOR CLUES TO FIND OUT WHAT HAS RUN AMOK ON A CHAIN OF SURREAL ISLANDS IN A MAJOR DEPARTURE FROM MOST COMPUTERGAME FORMATS THERE ISN'T ANY VIOLENCE TIME LIMIT OR RISK THAT YOU WILL DIE YOU CAN WANDER THE LANDSCAPE IN ANY ORDER AND YOU DON'T HAVE TO GATHER ALL THE CLUES TO SOLVE THE MYSTERY ANOTHER INNOVATION YOU CAN TURN AROUND AND VIEW THE 3D LANDSCAPES FROM DIFFERENT ANGLES INSTEAD OF WATCHING EVERYTHING FROM A FIXED FRONTAL VIEWPOINT AVAILABLE FOR MACINTOSH COMPUTERS ONLY MACBETH VOYAGER CO NEW YORK WITH THIS SOONTOBERELEASED INTERACTIVE VERSION OF THE SHAKESPEARE PLAY YOU CAN READ MACBETH OR BANQUO THE GHOST OR ANY PART YOU WANT OPPOSITE THE COMPUTER'S PRERECORDED READINGS BY PROFESSIONAL ACTORS OF ALL THE OTHER PARTS YOU CAN ALSO CLICK ON CERTAIN WORDS IN THE TEXT TO FIND OUT WHAT THEY MEAN OR GET BACKGROUND INFORMATION THIS IS HOW WE ALL SHOULD HAVE LEARNED SHAKESPEARE SAYS LINDA STONE WHO DEVELOPED APPLE COMPUTER INC'S CDROM BUSINESS AND IS NOW A DIRECTOR OF FUTURE TECHNOLOGIES FOR MICROSOFT CORP THE MACINTOSH VERSION IS DUE OUT THIS SUMMER A VERSION THAT WILL RUN ON MICROSOFT'S WINDOWS WILL FOLLOW TOTAL DISTORTION ELECTRONIC ARTS CO SAN MATEO CALIF THIS IS THE ONLY GAME ON THE LIST THAT REQUIRES YOU TO MAKE ART IN ORDER TO WIN YOU ROMP THROUGH SPACE AS A ROCKVIDEO PRODUCER SEARCHING FOR NEW MATERIAL THAT WILL SELL BACK ON EARTH YOU SHOOT VIDEO OF THE CHARACTERS YOU MEET DO VERY SIMPLE EDITING AND PRESENT THE RESULTS TO YOUR BOSSES VIA VIDEOPHONE UNLIKE MOST GAMES THIS ONE ALLOWS YOU TO CHOOSE YOUR OWN TERMS OF WINNING WEALTH FAME OR WEALTH AND FAME THE MACINTOSH VERSION IS DUE OUT NEXT MONTH A WINDOWS VERSION WILL FOLLOW THIS SUMMER TUNELAND 7TH LEVEL INC RICHARDSON TEXAS THE PROGRAM CAN PLAY AS A CARTOON BUT CHANGES INTO A GAME AS SOON AS YOU CLICK ON THE SCREEN CLICK ON ANIMALS TO HEAR THEIR SOUNDS OR TO HEAR CHILDREN'S SONGS RECORDED INCONGRUOUSLY BY PINK FLOYD LEAD GUITARIST DAVID GILMOUR ONE TREAT A CHARACTER BASED ON COMEDIAN HOWIE MANDEL IS HIDING ON THE SCREEN AT ANY MOMENT DURING THE PROGRAM FIND HIM AND HE WILL TEACH YOU MAGIC TRICKS AVAILABLE IN WINDOWS FORMAT ONLY FREAK SHOW VOYAGER THIS IS A CDROM OFFSHOOT OF AN ALBUM BY A SAN FRANCISCO CULT BAND THE RESIDENTS FIRE IT UP AND YOU ARE OUTSIDE A CIRCUS TENT INSIDE ARE FREAKSHOW PERFORMERS AND IF YOU CAN FIND YOUR WAY BACKSTAGE YOU CAN GO INTO THEIR TRAILERS TO LEARN ABOUT THEIR THOUGHTS CLICK ON HARRY THE HEAD WHO LIVES IN A JAR AND HEAR MEDITATIVE HUMMING IN THE END YOU WALKED AWAY FEELING VERY WARM TOWARD THIS CREATURE WHO LIVES SUSPENDED IN SOME LIQUID IN A JAR SAYS SUZANNE STEFANAC A CONTRIBUTING EDITOR TO MACWORLD MAGAZINE THAT'S SOMETHING YOU COULD ONLY DO WITH CDROM AVAILABLE IN WINDOWS VERSION ONLY A MACINTOSH VERSION IS DUE OUT SHORTLY RODNEY'S WONDER WINDOW VOYAGER THIS IS A SILLY ART TOY THAT MS STONE SAYS HAS NO REDEEMING VALUE EXCEPT THAT IT MAKES MOST PEOPLE LAUGH AMONG OTHER THINGS YOU CAN CALL UP A PAIR OF SHORTS THAT HANG OVER A PAIR OF HAIRY LEGS YOU THEN DESIGN THE SHORTS BY CLICKING ON PATTERNS YOU CAN MAKE THEM OF WOOD FOR EXAMPLE OR COVERED WITH POLKA DOTS OR YOU CAN CHOOSE AN ANIMATED SPOOFDOCUMENTARY ON THE MATING HABITS OF THE FICTITIOUS TOOLI BUGS AND IF YOU DON'T REMEMBER TO TELL THE PROGRAM TO WATER AN ONSCREEN PLANT ABOUT ONCE EVERY 20 MINUTES IT DIES AVAILABLE IN MACINTOSH AND WINDOWS VERSIONS MAGIC DEATH INDEPENDENT SOFTWARE DEVELOPER SHANNON GILLIGAN OF SANTA FE NM YOU'RE A SLEUTH TRYING TO SOLVE THE MURDER OF A WOMAN ANTHROPOLOGY STUDENT WHO WAS SPECIALIZING IN VOODOO AS YOU SEARCH FOR CLUES IN DIARIES ANSWERING MACHINES AND LESS OBVIOUS PLACES YOU LEARN LOTS ABOUT VOODOO AVAILABLE IN BOTH MACINTOSH AND WINDOWS VERSIONS VIRTUAL TAROT VIRTUAL MEDIA WORKS SUNNYVALE CALIF THE COMPUTER DEALS YOUR TAROT HAND TELLS YOU WHAT EACH CARD MEANS AND ALLOWS YOU TO IMMEDIATELY DIG UP REFERENCE MATERIAL ON ANY CARD YOU CAN LEARN ABOUT THE HISTORY OF THE GAME AND READ ARTICLES ON THE SUBJECT CHUCK FARNHAM A SAN JOSE CALIF SOFTWARE DEVELOPER SAYS HE PREFERS THIS RANDOM ACCESS TO BEING STUCK IN MOST COMPUTER ADVENTURE GAMES WHERE THE HERO HAS TO COMPLETE A SERIES OF EVENTS IN A PARTICULAR ORDER BEFORE PROGRESSING TO THE NEXT STAGE OF THE GAME I WANT EVERYTHING AT ONE TIME MR FARNHAM SAYS MACINTOSH VERSION AVAILABLE A WINDOWS VERSION IS DUE OUT SHORTLY HOW COMPUTERS WORK TIME WARNER INTERACTIVE GROUP BURBANK CALIF THIS IS ANOTHER RANDOMACCESS DATA PROGRAM THAT ALLOWS YOU TO ATTACK THIS UNWIELDY SUBJECT IN ANY ORDER IF YOU SELECT THE SECTION ON COMPUTER CHIPS FOR INSTANCE YOU CAN CHOOSE JUST A BASIC DEFINITION OR GET A FULLBLOWN TECHNICAL EXPLANATION OF EXACTLY HOW THE DEVICE WORKS THE PROGRAM INCLUDES EXERCISES THAT TEST YOUR KNOWLEDGE NOW AVAILABLE FOR THE MAC A WINDOWS VERSION IS DUE OUT IN MIDSUMMER PRIZE FIGHTER SEGA OF AMERICA INC REDWOOD CITY CALIF THIS CDROM VIDEO BOXING GAME WHICH CAN ONLY BE PLAYED ON PROPERLY EQUIPPED SEGA GAME PLAYERS ALSO TAKES ADVANTAGE OF DIFFERENT POINTS OF VIEW YOU VIEW THE GAME THROUGH YOUR BOXER'S EYES WHEN HE IS HIT YOUR WHOLE VIEW OF THE WORLD IS JARRED WHEN HE IS KNOCKED OUT ALL YOU SEE IS THE FLOOR MS RIGDON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU 9403210152 940321 IN THE LAB A SMALL COMPANY PUTS A NEW SPIN ON WASHERS BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL GROVEPORT OHIO STABER INDUSTRIES INC HAS INVENTED A MACHINE THAT TURNS THE BUSINESS OF WASHING CLOTHES ON ITS SIDE LED BY BROTHERS WILLIAM AND JIM STABER THE COMPANY CREATED A EUROPEANSTYLE WASHER THAT TUMBLES CLOTHES ON A HORIZONTAL AXIS RATHER THAN THE AMERICAN WAY OF CHURNING CLOTHES WITH AN AGITATOR BECAUSE IT USES LESS WATER A HORIZONTALAXIS MACHINE IS CONSIDERED FAR MORE EFFICIENT THAN TODAY'S US MODELS WITH VERTICAL AXES FACING THE PROSPECT OF TOUGHER GOVERNMENTMANDATED ENERGYEFFICIENCY REQUIREMENTS IN 1999 COMPANIES SUCH AS MAYTAG CORP AND WHIRLPOOL CORP ARE STUDYING HORIZONTALAXIS MACHINES BUT THE STABERS WHO SAY THEY HAVE DECLINED TO GIVE SAMPLES OF THEIR SYSTEM 2000 MACHINES TO MAYTAG AND WHIRLPOOL APPEAR TO BE FAR AHEAD THE STABERS' GAME PLAN WAS TO SIMPLIFY AND AMERICANIZE THE EUROPEANSTYLE WASHER THEIRS LOADS FROM THE TOP FOR EXAMPLE MOST OF EUROPE'S WASHERS AND A HORIZONTAL WASHER MADE IN THE US BY THE FRIGIDAIRE UNIT OF SWEDEN'S AB ELECTROLUX LOAD FROM THE FRONT THE STABERS EVEN MADE THEIR MACHINE BULKIER THAN IT HAS TO BE SO IT LOOKS SIMILAR TO TODAY'S US MODELS THE BROTHERS STILL HAVE TO PROVE THERE'S A MARKET FOR THE MACHINE INTO WHICH THEY HAVE PUT SOME 2 MILLION OVER THE PAST FOUR YEARS THEIR ASSEMBLY LINE CRANKS UP NEXT MONTH AT AN INITIAL RATE OF FIVE WASHERS A WEEK BUT THEY HAVE ALREADY DEMONSTRATED THAT IT DOESN'T TAKE A HUGE BUDGET OR A BIG RESEARCH TEAM TO CREATE AN INNOVATIVE NEW PRODUCT IT'S NOT BECAUSE WE'RE A BUNCH OF GREENHEADS SAYS WILLIAM STABER 35 YEARS OLD DISMISSING AN ENVIRONMENTAL MOTIVATION IT WAS A BETTER WAY TO DO IT THE STABERS STUMBLED ON THEIR IDEA AFTER WATCHING THE DECLINE OF THEIR BASIC BUSINESS OF REMANUFACTURING WASHING MACHINES AND STUDYING THE GOVERNMENT'S PLANS TO TIGHTEN EFFICIENCY REQUIREMENTS WE DECIDED WE WANTED TO BE IN SOMETHING OTHER THAN THE TAILEND OF THE PRODUCT LIFECYCLE SAYS JIM STABER 45 THE BROTHERS TURNED TO ED CHILCOAT FOR HELP MR CHILCOAT AN ENGINEERING MANAGER FOR A LARGE COMMERCIAL LAUNDRY IN HIS PREVIOUS JOB REPAIRED HIS PARENTS' WASHER WHEN HE WAS 10 YEARS OLD IT WASN'T WASHING MACHINES THAT INTRIGUED HIM BUT THE CHALLENGE OF DESIGNING A NEW PRODUCT MR CHILCOAT BECAME THE FIRST OF FOUR ENGINEERS WHO WORKED ON THE STABERS' MACHINE AT FIRST MR CHILCOAT WORKED AT HOME COMING UP WITH EARLY CONCEPTS ON A COMPUTERAIDED DESIGN PROGRAM LATER THE 39YEAROLD ENGINEER PERSUADED THE STABERS TO INVEST IN A SIMILAR SYSTEM FOR THE OFFICE AT STABER MR CHILCOAT FOUND THAT RESEARCH AND DEVELOPMENT MEANT BORROWING A ROOM HERE OR A FACTORY CORNER THERE HE SPENDS MUCH OF HIS TIME IN A MAKESHIFT COMPUTER ROOM DUBBED THE BAT CAVE BECAUSE ITS WINDOWS ARE COVERED WITH BLACK PLASTIC TO MAKE IT EASIER TO SEE THE COMPUTER SCREENS IT WAS IN THE BAT CAVE THAT MR CHILCOAT WORKED ON THE UNIQUE SHAPE OF THE SIDES OF THE MACHINE'S INNER AND OUTER WASH TUBS IN ALL HORIZONTALAXIS MACHINES WATER FLOWS THROUGH THE HOLES OF THE INNER TUB AND INTO THE CLOTHES BUT INSTEAD OF USING CIRCULAR TUBS MR CHILCOAT INCREASED THE FORCE OF WATER MOVING FROM ONE TUB TO THE OTHER BY MAKING THE TUBS MANYSIDED HE EXPERIMENTED WITH THE IDEA ON THE COMPUTER A FEW STEPS AWAY IN THE FACTORY MR CHILCOAT WELDED AND ASSEMBLED THE TUBS THEY BECAME PART OF THE FIRST CRUDE WASHER COMPLETE WITH A CLEAR FRONT SO THE ENGINEERS COULD SEE INSIDE THE RESULT IS THAT THE TUB WORKS LIKE A WATER PUMP BUT WITHOUT THE PUMP EARLY THIS YEAR MR CHILCOAT AND STABER INDUSTRIES WERE GRANTED A PATENT FOR THE IDEA THE CRAZYSHAPED TUB WHICH THE STABERS SAY GETS CLOTHES CLEANER WASN'T THE ONLY INNOVATION MAYTAG USES A PLASTIC BALL AS A HINGE FOR THE LID STABER SIMPLIFIED IT FURTHER MAKING A PLASTIC BALL PART OF THE LID IT ALSO MADE THE MACHINE EASIER TO REPAIR BY MAKING KEY PARTS ACCESSIBLE FROM THE FRONT MORE IMPROVEMENTS ARE PLANNED ELECTRICAL ENGINEER MIKE SHAW WORKS ON NEW ELECTRICAL CONTROLS IN AN OFFICE PAPERED WITH BLUEPRINTS TACKED TO UNFINISHED DRY WALL HIS TASK IS TO DEVELOP FLEXIBLE CONTROLS THAT WILL ALLOW STABER TO CUSTOMIZE WASH CYCLES FOR INDIVIDUAL CUSTOMERS THE SYSTEM 2000'S BIGGEST SELLING POINT IS THAT IT SAVES RESOURCES AS MUCH AS 66 LESS WATER AND ENERGY TO HEAT THE WATER AND AS MUCH AS 75 LESS DETERGENT THE MAKERS CLAIM BUT CLOTHES CAN'T BE ADDED DURING THE CYCLE BECAUSE THE LID IS LOCKED UNTIL NEARLY TWO MINUTES AFTER THE WASHER STOPS A SAFETY FEATURE SHARED BY EUROPEAN MODELS WITH PRICES EXPECTED TO RANGE FROM 995 TO 1195 A SYSTEM 2000 WILL COST TWO OR EVEN THREE TIMES CURRENT US MODELS WE'RE NOT SURE THAT MARKET IS OUT THERE SAYS JC ANDERSON WHIRLPOOL'S VICE PRESIDENT OF LAUNDRY MANUFACTURING AND TECHNOLOGY THE BIG APPLIANCE MAKERS FEAR THAT IF THE GOVERNMENT CREATES THAT MARKET WITH TOUGH EFFICIENCY REQUIREMENTS IT COULD COST HUNDREDS OF MILLIONS OF DOLLARS TO RETOOL THEIR FACTORIES THE STABERS SAY THEY'LL SETTLE FOR A NICHE IN THE 25 BILLIONAYEAR US WASHINGMACHINE MARKET OR EVEN AN AGREEMENT TO SELL ITS TECHNOLOGY TO GENERAL ELECTRIC CO WHICH IS TESTING THEIR MACHINE A GE SPOKESWOMAN SAYS THE COMPANY WON'T COMMENT ON ITS DEALINGS WITH STABER FRIGIDAIRE MEANWHILE PLANS A NEW HORIZONTAL WASHER FOR NEXT YEAR AND MAYTAG HAS EARMARKED AS MUCH AS 50 MILLION TO PRODUCE ONE OF ITS OWN A FEW WEEKS AGO SEVEN MAYTAG OFFICIALS TRAVELED TO COLUMBUS OHIO WHERE THEY WASHED THEIR CLOTHES AT A COINOPERATED LAUNDRY THAT'S TESTING THE STABERS' SYSTEM 2000 MACHINES 9403210151 940321 BRAZIL BANKS TRY NEW TACK ON DEBT DEAL LARGE CREDITORS IN EFFORT TO MEET DEADLINE SEEK WAIVER ON IMF BACKING BY THOMAS T VOGEL JR AND ICHELE WUCKER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BRAZIL AND CERTAIN LARGE CREDITORS ARE SCRAMBLING TO KEEP A 52 BILLION DEBT DEAL ALIVE WITHOUT THE FINANCIAL BACKING OF THE INTERNATIONAL MONETARY FUND AFTER HOLDING EMERGENCY MEETINGS LATE LAST WEEK BRAZIL AND ITS BANK ADVISORY COMMITTEE LED BY CITIBANK TOOK THE UNUSUAL STEP OF ASKING NEARLY 800 CREDITORS TO WAIVE A CLAUSE IN THEIR CONTRACTS THAT CONDITIONED THE DEAL ON AN IMF STANDBY LOAN AGREEMENT CREDITORS HOLDING AT LEAST TWOTHIRDS OF THE DEBT INCLUDED IN THE DEAL MUST AGREE TO THE WAIVER BY THURSDAY OR RISK A LONG DELAY FORGING AHEAD WITH THE RESTRUCTURING WITHOUT THE IMF SUPPORT COULD MAKE THE DEAL MORE RISKY AND EXPENSIVE FOR BRAZIL TO COMPLETE BUT FAILURE TO COMPLETE THE DEAL BY THE APRIL 15 DEADLINE COULD BE EVEN MORE DAMAGING A DELAY COULD HAVE A NEGATIVE SPILLOVER EFFECT ON THE BONDS OF OTHER LATIN AMERICAN NATIONS WHICH HAVE BECOME POPULAR INVESTMENTS WITH US MONEY MANAGERS LATIN AMERICAN BONDS HAVE ALREADY BEEN ROCKED THIS YEAR BY POLITICAL WORRIES IN VENEZUELA AND MEXICO AND RISING INTEREST RATES IN THE US ON FRIDAY CITIBANK VICE CHAIRMAN WILLIAM R RHODES WHO HEADS BRAZIL'S BANK ADVISORY COMMITTEE SAID HE WAS CONFIDENT THE COMMITTEE WOULD RECEIVE THE NECESSARY WAIVERS THE 19 BANKS ON THE ADVISORY COMMITTEE WHICH RECOMMENDED THE WAIVERS TO OTHER CREDITORS ALREADY HOLD ABOUT A THIRD OF THE TOTAL DEBT HE SAID BRAZILIAN FINANCE MINISTER FERNANDO HENRIQUE CARDOSO INSISTED THAT THE DEAL WILL GO THROUGH AFTER 11 YEARS WE HAVE REACHED A FINAL ACCORD THE BANKS HAVE INDICATED THAT NOW BRAZIL IS SOLVENT HE SAID FRIDAY ANYONE WHO BETS ON BRAZIL HAS A CHANCE TO WIN A WAIT FOR IMF TO GIVE ITS BLESSING TO THE DEAL WOULD HAVE MEANT PUSHING THE CLOSING OF THE DEAL DANGEROUSLY CLOSE TO OCTOBER'S PRESIDENTIAL ELECTIONS WITH MR CARDOSO STILL DECIDING WHETHER TO RUN FOR THE COUNTRY'S TOP OFFICE A FURTHER DELAY WOULD MEAN THE CONCLUSION OF THE DEAL COULD LAND IN SOMEONE ELSE'S LAP IF MR CARDOSO DEVOTES HIS ENERGY TO CAMPAIGNING DESPITE THE UNCERTAINTIES INVESTORS SAID AN IMPERFECT DEAL IS BETTER THAN NONE AT ALL I WOULD SAY THAT A POOR PLAN WELL EXECUTED IS BETTER THAN VACILLATINGLY SEEKING AN IDEAL SAID JERRY FINNERAN PRESIDENT AT TCW AMERICAS WHICH MANAGES EMERGINGMARKETS FUNDS FOR TRUST CO OF THE WEST A LOS ANGELES MONEY MANAGER AND HAS SUBSTANTIAL INVESTMENTS IN BRAZILIAN DEBT BOTH SIDES REALIZED IT WAS BETTER TO DO SOMETHING NOW RATHER THAN ASK IF ANYTHING WAS GOING TO GET BETTER ONE MONTH FROM NOW OR THREE OR SIX MONTHS FROM NOW HE SAID BRAZIL'S RESTRUCTURING DEAL WAS MODELED ON GUIDELINES SET UP IN 1989 BY FORMER TREASURY SECRETARY NICHOLAS BRADY AND USED BY MEXICO ARGENTINA AND OTHER NATIONS UNDER THE GUIDELINES CREDITORS AGREE TO REDUCE THE COUNTRY'S DEBT AND CONVERT WHAT REMAINS INTO BONDS MANY OF WHICH ARE BACKED BY US TREASURY ZEROCOUPON BONDS THE INTERNATIONAL MONETARY FUND NEEDED TO APPROVE BRAZIL'S ECONOMIC PLAN BEFORE IT WOULD PROVIDE A STANDBY LOAN THAT WOULD BE USED TO HELP FINANCE THE PURCHASE OF THE TREASURY BONDS WITH THE IMF'S APPROVAL THE US TREASURY THEN WOULD HAVE SOLD BRAZIL A SPECIAL ISSUE OF BONDS WHICH WOULD HAVE BEEN PLACED INTO AN ACCOUNT WITH THE FEDERAL RESERVE BUT LAST WEDNESDAY THE IMF SAID BRAZIL WASN'T LIKELY TO GET A STANDBY AGREEMENT UNTIL IT IMPLEMENTED A PROPOSED NEW ANTIINFLATIONARY PROGRAM WHICH WOULD GO INTO PLACE BY JUNE AT THE EARLIEST LONG PAST THE APRIL 15 DEADLINE BRAZIL NEEDS MORE THAN 4 BILLION OF TREASURY BONDS TO COLLATERALIZE MANY OF THE NEW BONDS TO BE ISSUED AS PART OF THE AGREEMENT OF THAT AMOUNT BRAZIL NEEDS TO PURCHASE 28 BILLION IN BONDS BY APRIL 15 THE REST OF THE TREASURY BONDS MUST BE PURCHASED OVER THE NEXT TWO YEARS BRAZIL IS COUNTING ON SOME SORT OF INTERNATIONAL AID TO HELP WITH THE PURCHASE OF THIS LAST LOT OF BONDS BY BUYING THE BONDS IN THE OPEN MARKET BRAZIL COULD END UP PAYING MORE FOR THEM THAN IT WOULD HAVE HAD IT BEEN ABLE TO PURCHASE THEM DIRECTLY FROM THE TREASURY MR CARDOSO WOULDN'T SAY WHETHER BRAZIL HAD ALREADY BOUGHT ALL OF THE TREASURY BONDS HE DID SAY THAT BRAZIL COULD FINANCE THE PURCHASE BY USING SOME OF ITS OWN AMPLE FOREIGN RESERVES WHICH ARE ABOUT 35 BILLION IN EFFECT BRAZIL WOULD PROVIDE ITSELF A BRIDGE LOAN FROM ITS OWN RESERVES TO BE REPLACED LATER WITH IMF FUNDS IF A STANDBY ARRANGEMENT IS FINALLY REACHED 9403210150 940321 POLITICS & POLICY ROSE LAW FIRM TO FILE ETHICS COMPLAINT IN ARKANSAS ABOUT HUBBELL'S EXPENSES BY ELLEN JOAN POLLOCK AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL THE ROSE LAW FIRM HAS DECIDED TO FILE A COMPLAINT WITH ARKANSAS ETHICS AUTHORITIES ABOUT UNDOCUMENTED EXPENSES INCURRED BY FORMER ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL ACCORDING TO A LAWYER FAMILIAR WITH THE ROSE INQUIRY THE FIRM'S PARTNERS AGREED TO SEND A LETTER TO DISCIPLINARY OFFICIALS OF THE ARKANSAS SUPREME COURT MR HUBBELL FAILED TO DOCUMENT ROUGHLY 100000 IN EXPENSES SAID A PERSON AT THE ROSE FIRM AND THE FIRM IS CONCERNED THAT THEY WERE PERSONAL CHARGES MR HUBBELL WHO ANNOUNCED HIS RESIGNATION FROM THE JUSTICE DEPARTMENT LAST WEEK WROTE CHECKS ON THE FIRM'S BANK ACCOUNT TO COVER THESE EXPENSES MOST OF THE CHECKS WERE MADE OUT TO CREDIT CARD COMPANIES SAID THE LAWYER FAMILIAR WITH THE INQUIRY THE ETHICS COMPLAINT FOCUSES ON EXPENSES REIMBURSED TO MR HUBBELL BY THE ROSE FIRM THE CHARGES WEREN'T PASSED ON TO CLIENTS ACCORDING TO THE LAWYER BUT THEY WERE INCURRED WHILE DOING CLIENT WORK THE LAWYER SAID THE ROSE FIRM WAS CONCERNED THAT MR HUBBELL HAD VIOLATED AN ETHICS RULE BARRING MISREPRESENTATIONS BY A LAWYER AND DECIDED IT HAD AN OBLIGATION TO REPORT THE POSSIBLE BREACH JOHN NIELDS MR HUBBELL'S WASHINGTON LAWYER DECLINED TO COMMENT RONALD CLARK THE LAW FIRM'S MANAGING PARTNER DIDN'T RETURN PHONE CALLS ROSE PARTNERS HAVE ALSO BEEN MIRED IN A DISPUTE WITH MR HUBBELL ABOUT HIS HANDLING OF AN UNSUCCESSFUL LAWSUIT FOR POM INC AN ARKANSAS COMPANY OWNED BY HIS BROTHERINLAW THE POM CASE ISN'T AN ISSUE IN THE ETHICS COMPLAINT THE ROSE FIRM IS THE TARGET OF INVESTIGATIONS BY WHITEWATER SPECIAL COUNSEL ROBERT FISKE AND THE RESOLUTION TRUST CORP WHICH IS AUDITING THE FIRM'S BILLS MR HUBBELL WAS ONE OF SEVERAL ROSE LAWYERS WHO DID RTC WORK MR FISKE ISN'T LOOKING INTO QUESTIONS INVOLVING MR HUBBELL'S EXPENSES BUT IS LIKELY TO DO SO IF ASKED BY THE JUSTICE DEPARTMENT ACCORDING TO A PERSON FAMILIAR WITH HIS OPERATION ON ANOTHER FRONT IN THE WHITEWATER CASE DEPUTY TREASURY SECRETARY ROGER ALTMAN TOLD THE SENATE BANKING COMMITTEE THAT HIS CONTACTS WITH THE WHITE HOUSE OVER THE WHITEWATER ISSUE WERE MORE EXTENSIVE THAN HE HAD INITIALLY REVEALED IN A MARCH 11 LETTER TO COMMITTEE CHAIRMAN DONALD RIEGLE D MICH MR ALTMAN SAID HE HAD TALKED BRIEFLY LAST MONTH WITH HAROLD ICKES PRESIDENT CLINTON'S DEPUTY CHIEF OF STAFF ABOUT RECUSING HIMSELF FROM DEALING WITH ANY MATTERS CONCERNING MADISON GUARANTY SAVINGS & LOAN MADISON GUARANTY IS A FAILED ARKANSAS THRIFT THAT HAS BEEN LINKED TO MR CLINTON'S POLITICAL CAMPAIGNS AND HIS INVESTMENT IN WHITEWATER DEVELOPMENT CO A LAND VENTURE MR ALTMAN IS ACTING CHAIRMAN OF THE RTC WHICH LAST YEAR RECOMMENDED A CRIMINAL INVESTIGATION OF MADISON'S 1989 FAILURE THE REFERRAL MENTIONED BILL AND HILLARY RODHAM CLINTON AS POSSIBLE BENEFICIARIES OF ALLEGEDLY ILLEGAL ACTS THE CLINTONS HAVE DENIED ANY WRONGDOING THE MARCH 11 LETTER WHICH WAS DISCLOSED FRIDAY BY SEN ALFONSE D'AMATO R NY MARKS THE SECOND TIME THAT MR ALTMAN HAS WRITTEN MR RIEGLE SINCE HIS FEB 24 TESTIMONY TO REPORT ADDITIONAL MEETINGS BETWEEN TREASURY AND WHITE HOUSE OFFICIALS THIS HAS BEEN NOTHING LESS THAN A PATTERN OF DECEPTION MR D'AMATO SAID OF THE LETTER MR ALTMAN HAS TOLD ASSOCIATES THAT HE DIDN'T MENTION THE ICKES MEETING DURING THE HEARING BECAUSE HE DIDN'T CONSIDER THE FIVEMINUTE DISCUSSION SUBSTANTIVE THERE WAS NO DISCUSSION WHATSOEVER OF THE CASE ITSELF MR ALTMAN SAID IN HIS LETTER NEWS OF A SERIES OF MEETINGS HAS TRIGGERED CONCERNS THAT THE WHITE HOUSE OR THE TREASURY MAY HAVE BEEN TRYING TO HALT OR STALL THE MADISON INVESTIGATION AS A RESULT MR FISKE HAS CALLED ALL THE TREASURY AND WHITE HOUSE OFFICIALS INVOLVED TO TESTIFY BEFORE A FEDERAL GRAND JURY IN WASHINGTON MR ALTMAN HAS SAID HE'S CONFIDENT THAT THE GRAND JURY WILL CLEAR THE TREASURY AND WHITE HOUSE OF SUSPICION THAT THEY ATTEMPTED TO MANIPULATE THE CASE SEPARATELY REP JAMES LEACH R IOWA HAS CHARGED THAT OFFICIALS IN WASHINGTON MAY HAVE GAGGED RTC OFFICIALS IN KANSAS CITY MO WHERE THE MADISON INVESTIGATION WAS TAKING PLACE LAST WEEK THE RTC'S SPOKESMAN DISMISSED THE CHARGE WHICH MR LEACH HASN'T BACKED UP I DON'T KNOW WHAT CONGRESSMAN LEACH IS TALKING ABOUT STEVE KATSANOS SAID IF HE WOULD BRING ANY SPECIFIC EXAMPLES OR CONCERNS TO OUR ATTENTION WE WOULD BE HAPPY TO RESPOND MR LEACH MAY TRY TO SUBSTANTIATE THIS AND POSSIBLY OTHER ALLEGATIONS AT A HOUSE BANKING COMMITTEE HEARING SCHEDULED FOR THURSDAY BUT THE CHAIRMAN REP HENRY GONZALEZ D TEXAS IS DETERMINED TO PREVENT MADISON FROM BECOMING AN ISSUE MR GONZALEZ HAS TOLD WITNESSES TO DEAL ONLY WITH SUCH QUESTIONS AS THE PROGRESS THE RTC IS MAKING IN SELLING THE ASSETS OF FAILED THRIFTS THE GONZALEZ STANCE COULD HURT MR ALTMAN HOWEVER THE ACTING RTC CHIEF HAS TOLD ASSOCIATES THAT HE'S LOOKING FORWARD TO THE HEARINGS TO EXPLAIN HIS WHITE HOUSE MEETINGS AND BRUSH AWAY ANY APPEARANCE OF IMPROPRIETY ON NBC NEWS' MEET THE PRESS YESTERDAY HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO SAID THE HOUSE MIGHT BE ABLE TO HOLD MADISONRELATED HEARINGS AFTER MR FISKE COMPLETED THE WASHINGTON PORTION OF HIS INQUIRY I THINK WE'RE GOING TO BE TALKING TO THE REPUBLICAN LEADERSHIP EARLY IN THE WEEK WE'LL BE TALKING WITH MR LEACH REP GEPHARDT SAID IF THERE'S A WAY TO COORDINATE WHAT THEY'RE DOING EVEN IN THIS RTC OVERSIGHT HEARING WITH WHAT MR FISKE IS DOING THAT'S WHAT WE OUGHT TO DO 9403210149 940321 DELUXE PREDICTS FIRSTPERIOD EARNINGS WITHIN RANGE ANALYSTS ARE PROJECTING BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL ST PAUL MINN DELUXE CORP EXPECTS PERSHARE EARNINGS FOR THE FIRST QUARTER TO BE IN THE 45 CENTS TO 50 CENTS RANGE ANALYSTS ARE PROJECTING ACCORDING TO CHIEF FINANCIAL OFFICER CHARLES M OSBORNE IN AN INTERVIEW DELUXE OFFICIALS ALSO OFFERED AN UPDATE ON THE COMPANY'S PLANS FOR MARKETING AN ENVIRONMENTALLY FRIENDLY INK THEY EXPECT WILL PRODUCE SUBSTANTIAL REVENUE WITHIN A FEW YEARS HAVING SO FAR FAILED TO LINK UP WITH A PRODUCTION PARTNER FOR THE PROPRIETARY PRODUCT DELUXE IS MOVING FORWARD WITH PRODUCING AND MARKETING THE INK ON ITS OWN ALL OF ITS OWN PLANTS HAVE BEEN SWITCHED OVER TO THE PRODUCT AND THE FIRST COMMERCIAL SALES OCCURRED IN THE CURRENT PERIOD THE COMPANY ALSO OUTLINED ITS OTHER DIVERSIFICATION PLANS WHICH ARE BASED ON MANAGEMENT'S EXPECTATIONS THAT THE GROWTH OF ITS PRIMARY BUSINESS WILL CONTINUE TO SLOW THE RESULTS MR OSBORNE PROJECTED WOULD REPRESENT A SUBSTANTIAL DOWNTURN FROM THE YEARAGO QUARTER'S 518 MILLION OR 62 CENTS A SHARE AS EVIDENCE OF THE PRESSURE ON DELUXE'S PROFIT MARGINS THE EARNINGS DECLINE WILL COME DESPITE AN INCREASE IN REVENUE TO ABOUT 425 MILLION FROM THE YEARAGO PERIOD'S 4057 MILLION THE RESULTS THE COMPANY ANTICIPATES FOR THE CURRENT FIRST QUARTER WOULD BE IN LINE WITH THE LATEST ESTIMATES BY ANALYSTS A NUMBER OF WHOM HAVE SLIGHTLY LOWERED PROJECTIONS THAT PREVIOUSLY RANGED UP TO 55 CENTS MR OSBORNE SAID IN PART HE POINTED OUT RESULTS IN THE LATEST PERIOD WERE HURT BY PRODUCTION DISRUPTIONS RELATED TO THE CALIFORNIA EARTHQUAKE AS WELL AS A SLOWDOWN IN ORDERS FROM REGIONS AFFECTED BY UNUSUALLY HARSH WINTER WEATHER DELUXE'S TRADITIONAL BUSINESS IS PRINTING CHECKS FOR FINANCIAL INSTITUTIONS BUT AS THE INDUSTRY'S CONSOLIDATION TREND CONTINUES CUSTOMERS ARE GROWING BIGGER AND USING THEIR INCREASED BUYING CLOUT TO DEMAND DISCOUNTS AT THE SAME TIME THE DRIVE FOR ADDITIONAL NONINTEREST INCOME IS INDIRECTLY CONTRIBUTING TO MARGIN PRESSURE TO BOOST REVENUE MANY BANKS ARE SHARPLY HIKING THE PRICE OF CHECKS THEY PROVIDE CUSTOMERS THAT DRIVES THE CUSTOMERS TO MAKE USE OF LOWERCOST CHECKS AVAILABLE BY MAIL AS A RESULT OF THOSE PRESSURES DELUXE HAS INSTITUTED A NUMBER OF COSTCUTTING MOVES IT TOOK A 49 MILLION PRETAX CHARGE LAST YEAR FOR EXAMPLE TO COVER CLOSING 16 CHECK PRINTING FACILITIES ALL BUT TWO OF THOSE SHUTDOWNS HAVE BEEN COMPLETED MR OSBORNE SAID IN ADDITION THE COMPANY IS EXPANDING ITS OWN PRODUCTION OF DIRECTMAIL CHECKS THOSE CHECKS ARE MANUFACTURED BY DELUXE'S CURRENT UNIT WHICH ALSO MAKES SOCIAL EXPRESSION PRODUCTS SUCH AS GREETING CARDS GIFT WRAPS AND THE LIKE CURRENT IS ONE UNIT THE COMPANY HAS TARGETED FOR GROWTH THE COMPANY SIMILARLY PLANS TO EXPAND ITS BUSINESS SYSTEMS UNIT A PRINTER AND DISTRIBUTOR OF SHORTRUN COMPUTER FORMS AND BUSINESS FORMS INCLUDING CHECKS ALL AIMED AT SMALL BUSINESSES THE THIRD AREA WHERE THE COMPANY INTENDS TO EXPAND IS ITS ELECTRONIC PAYMENT SYSTEMS DIVISION THE SEGMENT'S BIGGEST BUSINESS IS PROCESSING TRANSACTIONS AND PROVIDING SOFTWARE FOR REGIONAL ATM NETWORKS AND FINANCIAL INSTITUTIONS IT ALSO IS SEEKING TO USE THOSE ELECTRONIC FUNDSTRANSFER TECHNOLOGIES INTO HIGHERGROWTH AREAS IN PARTICULAR INTO WHAT IS KNOWN AS THE ELECTRONIC BENEFIT TRANSFER MARKET 9403210148 940321 UAL TO WITHHOLD SEVERANCE PAYMENTS FOR SOME MEMBERS OF MACHINISTS UNION BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO STEPPING UP PRESSURE TO FORCE A CLOSING OF ITS 5 BILLION BUYOUT AGREEMENT UAL CORP SAID IT PLANNED TO WITHHOLD PROMISED SEVERANCE PAYMENTS TO SOME MEMBERS OF ITS MACHINISTS UNION WHICH LAST WEEK THREW A WRENCH IN THE BIG TRANSACTION LAST TUESDAY THE TWO PARTIES ALONG WITH THE PILOTS UNION FAILED TO MEET A DEADLINE FOR SIGNING A DEFINITIVE AGREEMENT ON THE CONCESSIONFOREQUITY TRANSACTION THAT WAS BECAUSE THE MACHINISTS BALKED CLAIMING THAT UNITED AIRLINES' MANAGEMENT AND NONCONTRACT EMPLOYEES WEREN'T EQUITABLY CONTRIBUTING CONCESSIONS IN EXCHANGE FOR WAGE CUTS AND WORKRULE CHANGES UNION AND NONCONTRACT EMPLOYEES OF UNITED AIRLINES WOULD RECEIVE A MAJORITY STAKE IN UAL THE AIRLINE'S PARENT COMPANY BECAUSE THE DEADLINE HAD PASSED UAL HAD THE RIGHT TO CANCEL PARTS OF THE PRELIMINARY BUYOUT AGREEMENT THE PARTIES AGREED TO LAST DECEMBER ONE OF THOSE PARTS INVOLVED THE PAYMENT OF ABOUT 50 MILLION IN SEVERANCE AND OTHER EMPLOYEE BENEFITS ACCORDING TO A RECENT FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE PAYMENTS WERE TO HAVE BEEN MADE TO MORE THAN 5000 CATERINGSERVICE EMPLOYEES WHO ARE MACHINISTS UNION MEMBERS AND WHO ARE LOSING THEIR JOBS AT UNITED BECAUSE THEIR DIVISION HAS BEEN SOLD EVEN AFTER SUBTRACTING THOSE EMPLOYEES THE INTERNATIONAL ASSOCIATION OF MACHINISTS WILL REMAIN UNITED'S LARGEST UNION WITH ROUGHLY 22000 MEMBERS IN JOBS RANGING FROM MECHANICS TO GROUND CREWS THE BUYOUT MEASURE HAS BEEN BROADLY UNPOPULAR AMONG THAT UNION'S MEMBERS WHO ONLY NARROWLY RATIFIED IT WITH 56 VOTING IN FAVOR UAL'S STOCK FELL 150 TO 127625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY FOR MONTHS THE STOCK HAS STAYED WELL BELOW THE VALUE OF THE BUYOUT PRICE WHICH OFFERS A PACKAGE OF CASH AND SECURITIES THE UNIONS VALUE AT 173 A SHARE THAT REFLECTS CONTINUED SKEPTICISM ABOUT WHETHER THIS EMPLOYEE BUYOUT AT UNITED WILL SUCCEED WHEN SEVERAL PREVIOUS ONES FAILED AND THE FACT THAT ANY DEAL AND POTENTIAL INVESTOR RETURN ISN'T EXPECTED UNTIL LATE SUMMER UNITED'S REVERSAL ON THE SEVERANCEPAYMENT ISSUE WAS VIEWED BY THE MACHINISTS AS A FIRST STEP IN A CAMPAIGN TO PRESSURE THEM INTO FINALIZING THE BUYOUT AGREEMENT OTHER CONTROVERSIAL MOVES UNITED HAS PREVIOUSLY SAID IT MIGHT MAKE AND WHICH IT IS NOW FREE TO PURSUE INCLUDE THE SALE OF ENGINEMAINTENANCE OPERATIONS AND CONTRACTING OUT JOBS THE MACHINISTS AND PILOTS UNIONS WORKED HARD TO COMPLETE THE INITIAL BUYOUT AGREEMENT LAST DECEMBER PRECISELY TO PREVENT UAL FROM PROCEEDING WITH THOSE KIND OF JOBTHREATENING ACTIONS THE MACHINISTS AND UNITED WOULDN'T COMMENT ON THE SEVERANCEPAYMENT ISSUE BEFORE THEY CONSENT TO A DEAL THE MACHINISTS WANT UNITED'S CURRENT EMPLOYEES TO TAKE BIGGER PAYCUTS AND TO RELY LESS ON A NEW PROGRAM THAT PAYS NEW HIRES LOWER WAGES AND BENEFITS THE COMPANY HAS SUGGESTED IT PLANS TO USE BOTH THOSE PROGRAMS TO GENERATE THE 509 MILLION IN CONCESSIONS THAT THE NONUNION EMPLOYEES HAVE PLEDGED IN THE BUYOUT 9403210147 940321 FORD GETS 2 BIDS FOR THRIFT UNIT IT SEEKS TO SELL MADISON FINANCIAL'S HEAD SHEARSON LEHMAN SAID TO BID 1 BILLION EACH BY STEVEN LIPIN AND JACQUELINE MITCHELL STAFF REPORTERS OF THE WALL STREET JOURNAL FORD MOTOR CO WHICH HAS BEEN TRYING TO SELL FIRST NATIONWIDE FINANCIAL CORP SINCE NOVEMBER HAS RECEIVED TWO BIDS FOR THE UNPROFITABLE THRIFT UNIT EACH ESTIMATED AT ABOUT 1 BILLION PEOPLE FAMILIAR WITH THE OFFERS SAID ONE OF THE BIDDERS IS GERALD J FORD A TEXAS INVESTOR WHO HEADS MADISON FINANCIAL INC A DALLASBASED THRIFT HE IS BELIEVED TO HAVE THE INSIDE EDGE OVER A RIVAL OFFER BEING MADE JOINTLY BY LOS ANGELESBASED GREAT WESTERN FINANCIAL CORP ONE OF THE LARGEST US THRIFTS AND LEHMAN BROTHERS INC THE INVESTMENT BANKING UNIT OF AMERICAN EXPRESS CO THAT IS BEING SPUN OFF ALTHOUGH THE GREAT WESTERN/LEHMAN BID HAS A NOMINALLY HIGHER VALUE IT CARRIES MORE CONDITIONS SUCH AS ADDITIONAL PROTECTION FROM FIRST NATIONWIDE'S PORTFOLIO OF PROBLEM LOANS PEOPLE ON WALL STREET SAID FORD IS EXPECTED TO RETAIN AT LEAST A PORTION OF SOME 1 BILLION IN NONPERFORMING LOANS IN ORDER TO SELL THE UNIT MR FORD'S BID IS CONTINGENT UPON FINANCING WHICH HE IS NOW LINING UP THROUGH A PRIVATE PLACEMENT OF EQUITY AND IS EXPECTED TO COMPLETE WITHIN WEEKS MR FORD WHO HAS NO CONNECTION TO FORD MOTOR OR FORMER PRESIDENT GERALD R FORD COULDN'T BE REACHED FOR COMMENT THE TWO BIDS FOR FIRST NATIONWIDE WERE FIRST REPORTED FRIDAY IN THE WASHINGTON POST PEOPLE CLOSE TO THE FIRST NATIONWIDE DEAL SAID THERE HAVE BEEN OTHER BIDDERS BUT THEY APPEAR TO HAVE DROPPED OUT FORD AND FIRST NATIONWIDE EXECUTIVES HAVE SAID THEY WON'T COMMENT ON SPECULATION OF DIVESTITURES OR ACQUISITIONS BUT FORD CHAIRMAN ALEXANDER TROTMAN AND OTHER FORD OFFICIALS HAVE DONE NOTHING IN RECENT WEEKS TO DISCOURAGE TALK THAT FIRST NATIONWIDE MAY BE SOLD SOON CLOSING ONE OF THE MORE UNSUCCESSFUL OF FORD'S EFFORTS TO DIVERSIFY DURING THE 1980S FORD BOUGHT THE BIG THRIFT IN 1985 FROM NATIONAL INTERGROUP INC FOR 493 MILLION SINCE THEN FORD HAS INVESTED 707 MILLION TO OFFSET LOSSES RELATED TO BAD COMMERCIAL LOANS IT'S NOT CLEAR WHETHER EITHER OF THE OFFERS NOW ON THE TABLE WOULD ALLOW FORD TO BOOK A PROFIT FROM UNLOADING FIRST NATIONWIDE FIRST NATIONWIDE WITH ASSETS OF 16 BILLION HASN'T TURNED A PROFIT SINCE 1990 LAST YEAR THE SAN FRANCISCOBASED THRIFT POSTED A LOSS OF 55 MILLION LARGELY REFLECTING BAD INVESTMENTS IN THE APARTMENT AND COMMERCIAL REAL ESTATE BUSINESS ALTHOUGH GREAT WESTERN HOPES TO EXPAND ITS THRIFT OPERATIONS WITH THE FIRST NATIONWIDE BID LEHMAN BROTHERS IS PARTICIPATING SOLELY IN ORDER TO SELL THE BULK OF FIRST NATIONWIDE'S PROBLEM REAL ESTATE LOANS LEHMAN HAS BECOME A BUYER OF BOTH DISTRESSED REAL ESTATE LOANS AS WELL AS PERFORMING LOANS IT RECENTLY PURCHASED 836 MILLION IN PERFORMING LOANS FROM NORTHEAST FEDERAL AND 100 MILLION BOTH PERFORMING AND NONPERFORMING LOANS FROM SUMMIT BANCORP 9403210146 940321 FORM + FUNCTION BY JOHN PIERSON AMERICA IS RESOUNDING TO THE SOUND OF ONE HAND DOING JUST ABOUT ANYTHING THERE'S A ONEHAND TAPE DISPENSER A ONEHAND PEPPERMILL AND A ONEHAND EGG BEATER ONEHAND GIVES YOU THE ABILITY TO HANDLE MULTIPLE TASKS TO PACK AS MUCH INTO THE DAY AS YOU CAN SAYS WILLIAM HULL FAUST A VICE PRESIDENT AT FITCH A WORTHINGTON OHIO DESIGN FIRM IT HAS DESIGNED A NEW ONEHAND BINDER FOR MORNINGSTAR MUTUAL FUNDS A SUBSCRIPTION SERVICE THAT ANALYZES MUTUAL FUND PERFORMANCE MORNINGSTAR FOUND THAT ITS OLD THREERING BINDER WAS AWKWARD SO FITCH DESIGNED A STIFF PLASTIC BOOK THE SUBSCRIBER MUST PUT A PLASTIC CLIP ON EACH ISSUE BEFORE POPPING IT INTO THE BINDER THE ISSUE CAN BE POPPED OUT IN ORDER TO PHOTOCOPY A PAGE IT TAKES LESS TIME AND ONLY ONE HAND SAYS MR FAUST VALUE LINE MORNINGSTAR'S MAIN RIVAL ISN'T AMUSED CEO JEAN BERNHARD BUTTNER SAYS HER COMPANY USED A CONVENTIONAL THREERING NOTEBOOK UNTIL THE 1960S AND SWITCHED TO A BINDER WITH CLOSED METAL RINGS AND CLIPPED HOLES THAT ALLOW THE BOOKLETS TO BE SLIPPED ON AND OFF NOTHING WORKS AS WELL SHE SAYS THE NEW MORNINGSTAR BINDER TAKES A LOT OF TIME TO PUT THINGS IN AND OUT AND WEIGHS A LOT MORE THAN OURS ADDS MS BUTTNER IT WEIGHS TWO OUNCES MORE MORNINGSTAR VICE PRESIDENT KURT HERMANN SAYS THE VALUE LINE BINDER IS EASY TO USE BUT LOOKS RATTY BECAUSE THE CLIPPED HOLES DROP LITTLE PIECES OF PAPER ALL OVER YOUR LAP NOT EVERY DESIGNER IN THE LAND OF PLENTY CONCENTRATES ON CREATING BETTER TOASTERS COMPUTER MICE AND MICROWAVEABLE BAGGIES A FEW MAKE PRODUCTS TO MEET THE NEEDS OF THIRD WORLD PEOPLE FOR WHOM SURVIVAL MEANS MORE THAN SHOPPING TAKE RALF HOTCHKISS AND THE ROUGHTERRAIN WHEELCHAIR MOST US WHEELCHAIRS DO POORLY IN POOR COUNTRIES THEY'RE EXPENSIVE HEAVY AND FRAGILE AND THEY DON'T NEGOTIATE RUTS MUD AND POTHOLES CONFINED TO A WHEELCHAIR SINCE A 1966 MOTORCYCLE ACCIDENT MR HOTCHKISS IS TECHNICAL DIRECTOR OF THE WHEELED MOBILITY CENTER AT SAN FRANCISCO STATE UNIVERSITY AND CODESIGNER OF THE WHIRLWIND WHEELCHAIR MADE WITH LOCAL MATERIALS AND LABOR THE WHIRLWIND COSTS AS LITTLE AS 150 IT WEIGHS 35 POUNDS 30 LESS THAN A CONVENTIONAL WHEELCHAIR ITS STRONG FLEXIBLE FRAME SURVIVES ROUGH GROUND AND ALL KINDS OF WEATHER THE WHIRLWIND'S FRONT CASTER WHEELS ARE ADAPTED FROM PUSHCART WHEELS IN ZIMBABWE MADE OF SOFT RUBBER THEY ARE WIDE AND FLATTISH ROLL EASILY OVER ROCKS AND SAND AND NEVER GO FLAT THE WHIRLWIND IS MADE IN 24 COUNTRIES MR HOTCHKISS AND HIS PARTNER PETER PFAELZER APPRISE EACH SHOP OF IMPROVEMENTS ANOTHER USBASED DESIGN THAT'S HELPING THE DEVELOPING WORLD IS A SOLAR BOX COOKER THAT IS USEFUL WHERE FUEL IS SCARCE SOLAR COOKERS INTERNATIONAL SACRAMENTO CALIF HAS SOLD A FEW THOUSAND OVENS AT 58 AND THOUSANDS OF SETS OF PLANS ART MARRIES SCIENCE TO BRING FORTH A BETTER DUMP AMERICAN CITIES ARE BEGINNING TO REAWAKEN TO THE IDEA THAT ROADS BRIDGES SEWAGETREATMENT PLANTS AND OTHER BITS OF INFRASTRUCTURE ARE MORE THAN MERE UTILITIES THEY ARE ALSO CREATIONS OF THE PUBLIC SPIRIT THE NEW INFRASTRUCTURE SAYS RON JENSEN PUBLIC WORKS DIRECTOR FOR PHOENIX CAN MEET A COMMUNITY'S CULTURAL AESTHETIC AND EDUCATIONAL NEEDS AS WELL AS PROVIDING A BASIC SERVICE MANY CITIES INCLUDING MIAMI SAN DIEGO AND BOSTON ARE STRUGGLING TO INJECT ART INTO INFRASTRUCTURE IN WAYS THAT GO DEEPER THAN ORNAMENTATION PHOENIX IS PROBABLY FARTHEST ALONG MAKING ARTISTS PART OF THE DESIGN TEAM FROM THE START ENGINEER JERRY CANNON PROPOSED COLUMNS TO HELP THE SQUAW PEAK PARKWAY PASS OVER A ROAD INSTEAD OF THE PLANNED FREESTANDING SPAN ARTIST MARILYN ZWAK DESIGNED THE COLUMNS IN THE SHAPE OF FROGS AFTER HOHOKAM INDIAN ARTIFACTS THEY ALLOW FOR A NARROWER MORE GRACEFUL PARKWAY ABOVE AND PROVIDE MORE SPACE FOR WALKWAYS BELOW AS WELL AS A BETTER DIVISION BETWEEN THE ROAD AND THE PATHS ARTISTS MICHAEL SINGER AND LINNEA GLATT DID THE CONCEPTUAL DESIGN FOR A NEW SOLIDWASTE MANAGEMENT FACILITY PROPOSING TO SUPPORT THE ROOF EXTERNALLY THE STEEL TRUSSES OUTSIDE ARE ATTRACTIVE AND ALSO ELIMINATE ALL BUT TWO COLUMNS INSIDE ALLOWING FOR SPACE THAT WILL ACCOMMODATE CHANGES IN SOLIDWASTE TECHNOLOGY PHOENIX ENGINEERS SAY THIS ARTISTRY WINS PUBLIC SUPPORT FOR PUBLIC WORKS IT ALSO SAVES MONEY THE SQUAW PEAK COLUMNS CUT 500000 FROM THE OVERPASS'S BUDGET 9403210145 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT ALTERED STATES BUTTON DOWN THE REMOTE CONTROL OF THE FUTURE SHOULD BE A LOT MORE VERSATILE AND A LOT SIMPLER BY THOMAS E WEBER ALL YOU TECHNOWIZARDS MAY FIND THIS BLASPHEMOUS BUT IT'S TRUE LESS IS OFTEN MORE ESPECIALLY WITH REMOTE CONTROLS AS ANY COUCH POTATO KNOWS REMOTE CONTROLS ALREADY AREN'T WHAT THEY USED TO BE WITH THEIR ROW AFTER ROW OF BUTTONS WITH MYSTERIOUS SYMBOLS AND LETTERS THEY'RE FUN TO PLAY WITH BUT DOES ANYBODY REALLY KNOW WHAT THEY DO NOW IMAGINE TELEVISION WITH FOUR OR FIVE TIMES AS MANY CHANNELS ALONG WITH A RAFT OF INTERACTIVE PROGRAMMING WILL ANYONE EVEN BE ABLE LIFT THE REMOTE THE FIGHT OVER WHO CONTROLS THE THING MAY WELL BE WON BY THE PERSON WITH THE BIGGEST BICEPS WELL DON'T START WORKING OUT JUST YET THE SAME TECHNOLOGIES THAT WILL TURBOCHARGE TELEVISION SETS ALSO PROMISE TO SLIM DOWN REMOTES AND MAKE NAVIGATING THE AIRWAVES EASIER FOR A CHANGE REMOTE CONTROLS OF THE FUTURE IN FACT MAY WELL RESEMBLE ULTRASIMPLE MODELS FROM THE 1950S MORE THAN THEY WILL THE 50BUTTON BEHEMOTHS OF TODAY I'D LIKE TO GET PEOPLE DOWN TO A TWOBUTTON REMOTE SAYS HAL KRISBERGH PRESIDENT OF THE COMMUNICATIONS DIVISION OF GENERAL INSTRUMENT CORP A MAJOR SUPPLIER OF CABLETELEVISION EQUIPMENT INCLUDING SETTOP BOXES AND REMOTE CONTROLS DUBIOUS YOU PROBABLY SHOULD BE GIVEN THE TECHIES' NATURAL URGE TO LOAD THEIR GADGETS WITH THINGS THAT THEY THINK ARE COOL BUT THAT ONLY BEWILDER THE REST OF US CONSIDER HOWEVER WHAT HAPPENED WITH PERSONAL COMPUTERS EARLY PCS WERE CONTROLLED BY ARCANE KEYBOARD COMMANDS AS TIME PASSED BETTER MICROPROCESSORS AND MORE CHIPS PERMITTED THE ADDITION OF SOCALLED GRAPHICAL USER INTERFACES ALLOWING USERS TO POINT WITH A MOUSE AND CLICK ON SIMPLE ICONS TO FIND THEIR WAY THROUGH A PROGRAM THE SAME REVOLUTION IS UNDER WAY IN TELEVISION AND CABLE EQUIPMENT FUTURE DEVICES WILL INCORPORATE SOPHISTICATED SOFTWARE THAT CAN ACT AS A GRAPHICAL INTERFACE FOR THE TELEVISION SET THE OLDSTYLE KEYBOARD REMOTE WILL BE REPLACED BY THE TELEVISION EQUIVALENT OF A COMPUTER MOUSE THE EVENTUAL RESULT FOR EVERY FUNCTION ADDED TO THE LIST OF CHOICES DISPLAYED ON THE TVSCREEN MENU THE BUTTON FOR THAT FUNCTION CAN BE DELETED FROM THE HANDHELD REMOTE ONLY THE MOST BASIC FUNCTIONS POWER AND VOLUME CONTROL FOR INSTANCE WILL REMAIN ON THE REMOTE VIEWERS WOULD INSTEAD SEE A TV SCREEN THAT WOULD RESEMBLE A NEWSPAPER TV LISTING THEY WOULD THEN USE KEYS ON THE REMOTE TO MOVE A CURSOR UP DOWN LEFT OR RIGHT ACROSS A GRID OF CHANNEL CHOICES ONCE THE CURSOR IS ON THE RIGHT SPOT A VIEWER TAPS A FIFTH KEY AN ENTER OR SELECT BUTTON TO ACTIVATE THE CHOICE SUCH A SYSTEM ALSO MAY HELP OVERCOME ONE OF THE WORLD'S MOST NOTORIOUS TECHNOLOGICAL PROBLEMS PROGRAMMING THE VCR RIGHT NOW WITH ALL THIS EXTRA POWER YOUR TELEVISION VCR AND CABLE BOX STILL DON'T WORK TOGETHER SAYS DOUG PATTON PRESIDENT OF PATTON DESIGN INC AN IRVINE CALIF REMOTECONTROLDESIGN FIRM YET THE TECHNOLOGY IS THERE TO DO WHAT WE WANT SOME SYSTEMS ON THE DRAWING BOARDS WILL SIMPLY MAKE RECORD ANOTHER OPTION ON THE REMOTE JUST MOVE THE CURSOR TO THE PROGRAM THEN CLICK ON THE RECORD BUTTON AND THE BEAST HAS BEEN TAMED SUCH A POINT AND CLICK APPROACH IS THE ONLY WAY TO DEAL WITH THE ELABORATE OPTIONS AHEAD SAYS ROB LOGAN MANAGER OF USERINTERFACE DESIGN AT THOMSON CONSUMER ELECTRONICS A UNIT OF FRENCH ELECTRONICS CONGLOMERATE THOMSONCSF WHICH MAKES TELEVISION SETS UNDER THE RCA NAME IN THE US TO DESIGN THE NEXT GENERATION OF RCA REMOTES THOMSON ASSEMBLED AN ECLECTIC GROUP MR LOGAN HAS A PHD IN COGNITIVE PSYCHOLOGY WHILE OTHERS ON HIS NINEMEMBER TEAM HAVE BACKGROUNDS IN VISUAL COMMUNICATIONS CREATIVE WRITING AND LIBRARY SCIENCE RCA ALREADY HAS TRANSFORMED ITS REMOTE CONTROLS FROM BUTTONFESTOONED BRICKS TO MORE MODERN DESIGNS THAT USE DIFFERENT BUTTON COLORS AND SHAPES TO ISOLATE IMPORTANT FUNCTIONS FUTURE UNITS SAYS MR LOGAN WILL ABANDON THE RECTANGULAR CANDYBAR SHAPE IN FAVOR OF A HANDGRIP DESIGN THAT LOOKS MORE LIKE A PHASER FROM STAR TREK IN THIS DESIGN THE REMOTE IS DOMINATED BY A LARGE CIRCULAR CONTROL CONSISTING OF FOUR PIEWEDGESHAPED ARROW KEYS WHEN NOT BEING USED TO MANEUVER AN ONSCREEN CURSOR THE ARROWS DO DOUBLEDUTY AS UP/DOWN BUTTONS FOR VOLUME AND CHANNEL THE FIRST OF THIS NEXT GENERATION OF REMOTES WILL BE INTRODUCED THIS SPRING AT OTHER COMPANIES DESIGNERS ARE WORKING ON REMOTES THAT USE MINIATURE VERSIONS OF COMPUTER JOYSTICKS AND TRACKBALLS LETTING VIEWERS THUMB THEIR WAY AROUND MENU SELECTIONS SOME COMPANIES ARE PLAYING WITH AN AIR MOUSE DESIGN THAT SHIFTS THE CURSOR IN RESPONSE TO MOVEMENTS OF THE ENTIRE REMOTE UNIT WAVE THE CONTROL TO THE LEFT AND THE CURSOR WILL OBEY WHATEVER THE GADGET THE SWITCH TO AN ONSCREEN SYSTEM PROMISES TO BRING VIEWERS NEW CAPABILITIES AND ALTER THE WAY THEY WATCH TELEVISION ONE OF THE BIGGEST CHANGES WILL BE THE RISE OF THE ONSCREEN PROGRAM GUIDE MOST VIEWERS ARE FAMILIAR WITH THIS NOW IT'S THE CHANNEL ON YOUR CABLE SYSTEM THAT DISPLAYS AN ANNOYINGLY SLOW CRAWL OF LISTINGS ON THE VARIOUS CHANNELS SET TO BACKGROUND MUSIC AND FRAMED BY ADVERTISEMENTS FOR PAYPERVIEW TURNING THAT GUIDE INTO A MENU GRID COMMANDED BY THE REMOTE CONTROL WILL LET USERS FIND A PROGRAM SELECTION AT THEIR OWN PACE THAT ALONE SHOULD SIMPLIFY THINGS WHEN THE NUMBER OF AVAILABLE CHANNELS CLIMBS INTO THREE DIGITS BUT FUTURE SOFTWARE WILL TURN THE LISTINGS INTO A SMART MENU CAPABLE OF SORTING AND EVEN SUGGESTING PROGRAMMING VIEWERS WILL CALL UP A SPORTS MENU FOR INSTANCE OR A LIST OF ALL SITUATION COMEDIES MOREOVER THEY WOULD START TO THINK OF NETWORKS NOT CHANNELS NUMBERS WON'T MEAN ANYTHING SAYS JOHN BURNS EXECUTIVE VICE PRESIDENT AT STARSIGHT TELECAST INC AN INTERACTIVE INTERFACE DEVELOPER IN FREMONT CALIF EVERYTHING WILL BE ON SCREEN AND IT WILL BE IDENTIFIED BY THE NAME OF THE CHANNEL FURTHER IN THE FUTURE SOFTWARE THAT OBSERVES A VIEWER'S HABITS AND PRESENTS A LISTING OF SHOWS BASED ON PAST CHOICES EVENTUALLY YOU CAN INTRODUCE A FORM OF ARTIFICIAL INTELLIGENCE SAYS VINNY GROSS PROJECT DIRECTOR FOR INTERACTIVE TELEVISION AT AMERICAN TELEPHONE & TELEGRAPH THE TELEVISION CAN LEARN WHERE YOU LIKE TO GO AND GET YOU THERE FASTER OF COURSE ALL THESE WONDERFUL NEW CAPABILITIES WILL REQUIRE CAREFUL DESIGN AND GRADUAL INTRODUCTION IF THEY ARE TO ASSIST VIEWERS AND NOT JUST BAFFLE THEM IN PLAIN ENGLISH TECHIES CAN'T COMPLICATE THINGS BY THROWING IN EVERY BELL AND WHISTLE THAT TECHNOLOGY ALLOWS THAT WON'T BE AN EASY TEMPTATION TO RESIST ESPECIALLY WHEN CABLETELEVISION COMPANIES HAVE A STRONG INTEREST IN DANGLING OUT EVERY NEW TYPE OF EXTRACHARGE SERVICE POSSIBLE BUT RESTRAINT IS CRUCIAL PEOPLE CLEARLY DON'T WANT TO FEEL THAT THEY'RE DEALING WITH A COMPUTER SAYS MR LOGAN OF THOMSON WHEN YOU ASK PEOPLE ABOUT COMPUTERS THEY'LL SAY ALL KINDS OF AWFUL THINGS BUT WHEN YOU ASK THEM ABOUT THEIR TV THEY'RE VERY COMFORTABLE WITH IT AGAIN A PARALLEL FROM THE DEVELOPMENT OF PERSONAL COMPUTERS IS HELPFUL YOU HAVE TO MIMIC THE INTERFACE THAT PEOPLE ARE USED TO AT LEAST FOR A WHILE SAYS ELLIOT SOLOWAY A UNIVERSITY OF MICHIGAN PROFESSOR WHO IS CONDUCTING RESEARCH ON COMPUTERS AND INTERACTIVE APPLICATIONS FOR EDUCATION THAT'S WHY COMPUTER SPREADSHEETS TOOK OFF LIKE WILDFIRE ACCOUNTANTS WERE ABLE TO TREAT THEM JUST LIKE PAPER SPREADSHEETS BUT WITH ONE EXTRA FEATURE WHEN YOU CHANGED ONE NUMBER EVERYTHING UPDATED THAT WAS ONE THING BUT IT WAS VERY POWERFUL ONE APPROACH HAS BEEN DEVELOPED BY EON CORP A RESTON VA DESIGNER OF INTERACTIVE SYSTEMS WHENEVER POSSIBLE THE EON DESIGN KEEPS A TELEVISION PROGRAM UP ON THE SCREEN AS A LINK TO THE TELEVISION PARADIGM VIEWERS ARE ACCUSTOMED TO INSTEAD OF REPLACING THE VIDEO PICTURES ONSCREEN MENUS ARE SUPERIMPOSED OVER THEM IN THE FAMILIAR STYLE OF TELEVISION NEWS GRAPHICS LIVE FROM DALLAS OR SPORTS STATISTICS 125 RBIS THIS YEAR WHEN YOU'RE TALKING PROGRAMMING THESE ARE MILLIONDOLLAR IMAGES EON PRESIDENT MIKE SHERIDAN SAYS YOU DON'T WANT THOSE IMAGES CROWDED YOU DON'T WANT THIS TO LOOK LIKE COMPUTER WINDOWS ANOTHER POSSIBLE TRAP LIES IN MAKING THINGS TOO EASY A SYSTEM DESIGNED TO BE USERFRIENDLY TO ALL WITH DETAILED INSTRUCTIONS WILL SOON FRUSTRATE VIEWERS AS THEY LEARN HOW THE SYSTEM WORKS IMAGINE A VIDEO ANALOG OF PHONEMAIL HELL PRESS ONE TO ADJUST VOLUME PRESS TWO TO ADJUST CHANNEL THAT DILEMMA MAY BE SOLVED BY CREATING SOFTWARE FOR THE CABLE SETTOP BOXES THAT CAN OPERATE IN SEVERAL MODES SUCH AS ADVANCED SIMPLE AND EVEN CHILD POWERWATCHERS MAY BE ABLE TO PURCHASE SOUPEDUP REMOTES WITH SHORTCUT BUTTONS DESIGNED TO WORK WITH THE ADVANCED MODE CHILDREN WILL ZAP AWAY WITH A CHILDSIZE CONTROL THAT MAKES EVERYTHING EASY AND NOTIFIES THE TV SET THAT THE INDIVIDUAL DOING THE ZAPPING ISN'T AUTHORIZED TO TAP INTO ADULT PROGRAMMING ONCE SUCH PROBLEMS HAVE BEEN SOLVED SOME OF THE REALLY WILD TECHNOLOGY MAY START APPEARING SOME INDUSTRY OBSERVERS SAY THE BEST POINTING DEVICE MAY BE THE EYE SENSORS COULD DETERMINE WHAT PART OF THE SCREEN A VIEWER IS LOOKING AT AND HIGHLIGHT IT ACCORDINGLY AND NEARLY EVERYONE INVOLVED IN DESIGNING TELEVISION INTERFACES AND REMOTE CONTROLS EXPECTS VOICE RECOGNITION TO PLAY A PART PERHAPS BEFORE THE END OF THE DECADE VOICE COMMANDS COULD MAKE FLIPPING TO THE NEWS AS EASY AS STATING ALOUD TVCNN IT IS UNLIKELY HOWEVER THAT THE HANDHELD REMOTE WILL DISAPPEAR ENTIRELY INCURABLE CHANNELSURFERS WOULD HAVE TO GRAZE THE OFFERINGS BY CHANTING CHANNEL UP CHANNEL UP CHANNEL UP IF ALL OF THESE POSSIBILITIES SOUND DAUNTING REMEMBER THAT THE INTERACTIVE FUTURE WILL FALL FLAT ON ITS FACE IF NO ONE CAN UNDERSTAND HOW TO OPERATE A TV SET THE POWERS THAT BE IN THE ENTERTAINMENT AND ELECTRONICS INDUSTRIES KNOW THAT SAYS BILL LUEHRS VICE PRESIDENT AND GENERAL MANAGER OF SUBSCRIBER VIDEO SYSTEMS AT SCIENTIFICATLANTA INC AN ATLANTABASED SUPPLIER OF CABLE EQUIPMENT YOU'VE GOT TO HAVE A SYSTEM THAT ENABLES THE SUBSCRIBER TO FIND THE CONTENT EASILY MR LUEHRS SAYS IF WE HAVEN'T FOUND A WAY TO ALLOW THAT THEN THE WHOLE THING IS LOST MR WEBER IS A REPORTER FOR THE DOW JONES NEWS SERVICE IN NEW YORK 9403210144 940321 NEW JERSEY IS SEEN CONTINUING PATTERN OF FINANCIAL MOVES BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NEW JERSEY'S NEW GOVERNOR HAS PROPOSED A FINANCIAL PLAN THAT CONTINUES A PATTERN OF ONETIME MEASURES THAT LED TO A LOWERING OF THE STATE'S BOND RATING IN 1991 STANDARD & POOR'S CORP SAID THE RATINGS AGENCY CURRENTLY RATES NEW JERSEY GENERAL OBLIGATION BONDS DOUBLEAPLUS BUT HAS A NEGATIVE OUTLOOK ON THE RATING OF 35 BILLION IN GENERAL OBLIGATION DEBT EARLIER THIS MONTH GOV CHRISTINE TODD WHITMAN SIGNED INTO LAW THE STATE'S FIRST INCOMETAX CUT IN HISTORY THE PROVISION TO CUT INCOME TAXES 5 ACROSS THE BOARD RETROACTIVE TO JAN 1 REPRESENTS A FIRST STEP FOR THE GOVERNOR IN MAKING GOOD ON HER CAMPAIGN PROMISE TO REDUCE INCOME TAXES 30 BY THE END OF HER FIRST TERM LAST WEEK MRS WHITMAN CALLED FOR A SECOND CUT IN THE STATE'S PERSONAL INCOME TAX TO TAKE EFFECT NEXT JAN 1 THE SECOND ROUND OF CUTS WOULD MEAN THAT STARTING NEXT YEAR PERSONAL INCOME TAXES FOR FAMILIES EARNING LESS THAN 80000 AND INDIVIDUALS EARNING LESS THAN 40000 WOULD BE REDUCED BY 15 FAMILIES EARNING 80000 TO 150000 AND INDIVIDUALS EARNINGS 40000 TO 75000 WOULD SEE TAX REDUCTIONS OF 75 AND THOSE IN THE HIGHEST TAX BRACKET WOULD SEE 6 CUTS MRS WHITMAN ALSO LAST WEEK SIGNED A LAW EXEMPTING FROM STATE INCOME TAX FAMILIES WITH INCOMES OF LESS THAN 7500 AND INDIVIDUALS EARNING LESS THAN 3750 S&P NOTED THAT GOV WHITMAN PROPOSES TO BALANCE REDUCTIONS IN INCOME AND CORPORATION TAXES LARGELY BY NUMEROUS ONESHOT RESOURCES TO CLOSE A 2 BILLION BUDGET GAP HER PROPOSED BUDGET TRANSFERS 827 MILLION OF ONETIME RESOURCES PLUS 400 MILLION OF A PROJECTED SURPLUS THE GOVERNOR HEAVILY RELIES ON TAPPING SURPLUSES GENERATED IN FISCALS 1993 AND 1994 AND RECALCULATING THE FUNDING REQUIREMENTS FOR PENSIONS AS WELL AS POSTRETIREMENT HEALTHCARE BENEFITS S&P COMMENTED ALTHOUGH PROFESSIONAL ACTUARIES MAY FIND BOTH THE STATE'S CURRENT PROCESS AS WELL AS THE PROPOSED REVISIONS ACCEPTABLE THERE IS SOME DEGREE OF RISK FOR THE LONGER TERM BEYOND 2000 THAT FUNDING LEVELS MAY HAVE TO BE INCREASED AS THE POOL OF BENEFICIARIES GROWS ALSO TO THE EXTENT THAT FUNDING IS REDUCED THE PENSION AND HEALTHCARE LIABILITIES ON THE STATE'S BALANCE SHEET MAY GROW S&P MANAGING DIRECTOR HYMAN C GROSSMAN ADDED THAT OF COURSE AS THE STATE KEEPS DIGGING INTO ONESHOT REVENUE SOURCES THE FISCAL HOLE JUST GETS DEEPER 9403210143 940321 GE CAPITAL REQUESTS SHAREHOLDER LIST FROM KEMPER SIGNALING LENGTHY BATTLE BY STEVEN LIPIN AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL GE CAPITAL CORP ASKED KEMPER CORP FOR A LIST OF ITS SHAREHOLDERS SETTING THE STAGE FOR WHAT COULD BE A LENGTHY BATTLE FOR CONTROL OF KEMPER THE REQUEST CAME IN RESPONSE TO KEMPER'S REJECTION LAST WEEK OF THE GENERAL ELECTRIC CO UNIT'S 22 BILLION OFFER TO BUY KEMPER KEMPER'S ANNUAL MEETING IS MAY 11 GE CAPITAL RECENTLY BOUGHT KEMPER STOCK WHICH GIVES IT THE RIGHT TO OFFER A RIVAL PROXY TO KEMPER'S GE CAPITAL COULD ASK SHAREHOLDERS TO ELECT ITS OWN NOMINEES FOR DIRECTOR AS WELL AS APPROVE A RESOLUTION ASKING THAT THE COMPANY PUT ITSELF UP FOR SALE FOUR OF THE COMPANY'S 13 BOARD MEMBERS COME UP FOR ELECTION THIS YEAR INCLUDING THE SEAT HELD BY KEMPER CHAIRMAN DAVID MATHIS GE CAPITAL SAID IT WANTS TO GO DIRECTLY TO SHAREHOLDERS TO LET THEM MAKE THE DETERMINATION REGARDING OUR PROPOSAL WROTE GE CAPITAL PRESIDENT GARY WENDT IN A LETTER SENT YESTERDAY TO MR MATHIS KEMPER SAID IT WOULD COMPLY WITH THE REQUEST AS LONG AS GE CAPITAL WAS A LEGITIMATE SHAREHOLDER GE CAPITAL HAS NO CURRENT PLANS TO TENDER FOR THE COMPANY'S SHARES IN WHAT WOULD BE AN OUTRIGHT HOSTILE OFFER SAY PEOPLE CLOSE TO GE CAPITAL IF IT ULTIMATELY DECIDES TO GO THAT ROUTE IT WOULD ALSO NEED THE SHAREHOLDER LIST TRADERS WHO WERE HOPING THAT GEC WOULD SIMPLY RAISE ITS 55ASHARE BID TO A PRICE THAT KEMPER COULDN'T REFUSE SAID THE REQUEST FOR THE LIST MARKS THE BEGINNING OF A PROTRACTED BATTLE FOR THE LONG GROVE ILL FINANCIAL SERVICES COMPANY IT'S A VERY HOSTILE BATTLE NOW SAID ONE TRADER THIS MAKES IT A LOT MESSIER GE CAPITAL HAS HIRED A PROXY SOLICITATION FIRM DF KING & CO TO HANDLE ITS COMMUNICATIONS WITH SHAREHOLDERS IF IT RECEIVES THE LIST GEC COULD BEGIN MAILING PROXIES TO SHAREHOLDERS AS SOON AS ITS DOCUMENT GETS REVIEWED BY THE SECURITIES AND EXCHANGE COMMISSION ALTHOUGH GEC COULD AT BEST WIN FOUR OF KEMPER'S 13 BOARD SEATS A GEC VICTORY WOULD BE A TREMENDOUS VOTE OF NO CONFIDENCE IN KEMPER THE FACT THAT MR MATHIS WHO TOOK THE HELM 13 MONTHS AGO IS UP FOR ELECTION MAKES THE VOTE EVEN MORE CRITICAL IT'S BAD WHEN YOU LOSE FOUR SEATS SAID ONE TRADER IT'S REALLY TOUGH WHEN THE CHAIRMAN IS UP IN HIS LETTER MR WENDT SAID GE CAPITAL HAD NO CHOICE BUT TO TAKE ITS CAMPAIGN TO SHAREHOLDERS YOU LEAVE US NO CHOICE BUT TO PROCEED UNILATERALLY AND COMMUNICATE DIRECTLY WITH OUR FELLOW SHAREHOLDERS WHO SURELY WILL FEEL THE TIMESENSITIVE URGENCY TO CONSUMMATE THIS TRANSACTION AS PROMPTLY AS POSSIBLE OR RISK SEEING THEIR VALUES DECLINE HE WROTE KEMPER'S CONTENTION THAT IT IS UNDERVALUED IS SUPPORTED BY A RESEARCH REPORT RELEASED IN EARLY FEBRUARY BY MERRILL LYNCH & CO ANALYST ALLEN NADLER WHEN THE REPORT CAME OUT KEMPER STOCK TRADED AT 40875 BUT MR NADLER ARGUED THAT THE COMPANY'S MUTUALFUND BUSINESS ALONE IS WORTH 37 TO 39 A SHARE AND ITS OTHER BUSINESSES ARE WORTH 20 TO 23 A SHARE SUGGESTING A VALUATION AS HIGH AS 62 A SHARE MANAGEMENT HAS DONE A FINE JOB OF CREATING REAL VALUE WHICH SOMEONE NOTICED MR NADLER SAID REFERRING TO GEC IN ADDITION TO RUNNING MUTUAL FUNDS KEMPER HAS A LIFEINSURANCE BUSINESS A REALESTATE BUSINESS AND A STRING OF BROKERAGE FIRMS THE BIGGEST QUESTION HANGING OVER THE COMPANY IS THE CONDITION OF ITS 25 BILLION REALESTATE PORTFOLIO BUT OVER THE LAST TWO YEARS KEMPER HAS WRITTEN DOWN OR PUT UP RESERVES EQUAL TO 37 OF THE PORTFOLIO'S BOOK VALUE WHICH MR NADLER BELIEVES IS SUFFICIENT GE HAS SAID IT WOULD CONSIDER RAISING ITS BID IF KEMPER GIVES IT ADDITIONAL INFORMATION ABOUT THE REAL ESTATE AND IT FINDS THE PORTFOLIO TO BE IN GOOD CONDITION WHILE MANY ON WALL STREET BELIEVE THE COMPANY WILL ULTIMATELY FETCH BETWEEN 65 AND 70 A SHARE OR 26 BILLION TO 28 BILLION WHY WOULD GE UP ITS BID WITHOUT LOOKING AT THE BOOKS SAID ONE INDIVIDUAL CLOSE TO GEC ANOTHER KEY FACTOR IN WHAT MR NADLER CALLS THE TURNAROUND AT KEMPER WAS THE SALE OF ITS REINSURANCE COMPANY TO ITS FORMER PARENT LUMBERMEN'S MUTUAL CASUALTY CO THE SALE HELPED MAKE KEMPER'S EARNINGS LESS VOLATILE BUT BECAUSE IT REDUCED LUMBERMEN'S OWNERSHIP IN KEMPER TO 4 FROM 40 IT MADE KEMPER VULNERABLE TO A TAKEOVER WE WOULD AGREE WITH MANAGEMENT THAT 55 A SHARE DOES NOT REFLECT THE VALUE OF KEMPER SAID BRIAN WALTON SENIOR EQUITY ANALYST AT NATIONSBANK CORP WHICH OWNS SUBSTANTIALLY MORE THAN 500000 SHARES OF KEMPER STOCK THE CONCEPT OF THE FIT MAKES SENSE NOW IT'S JUST A MATTER OF GETTING THE TWO PARTS OF THE EQUATION TOGETHER 9403210142 940321 CANADIAN BANKRUPTCIES DROP OTTAWA CANADIAN BANKRUPTCIES TOTALED 4603 IN JANUARY A 15 DECLINE FROM 5401 A YEAR EARLIER THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT SAID THE LATEST FIGURE INCLUDED 3712 BANKRUPTCIES BY INDIVIDUALS A 16 DROP FROM 4397 A YEAR EARLIER AND 891 BUSINESS BANKRUPTCIES AN 11 DECLINE FROM 1004 9403210141 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT WHERE THE MONEY IS TOMMY' IN CYBERSPACE THE WHO'S ROCKOPERA GOES INTERACTIVE AND ITS JOURNEY SAYS A LOT ABOUT THE NEW MEDIUM BY DAVID J JEFFERSON SCOTTS VALLEY CALIF IT'S IRONIC THAT A GROUP OF MULTIMEDIA PROSPECTORS MINING THE EDGE OF CYBERSPACE WOULD STAKE THEIR CLAIM ON SOMETHING AS LOWTECH AS PINBALL BUT A TINY SOFTWARE STARTUP ROUNDBOOK PUBLISHING GROUP INC IS HOPING THAT A 1960S ROCKOPERA ABOUT A DEAF DUMB AND BLIND PINBALL WIZARD TURNED POP MESSIAH WILL BECOME THE SUPER MARIO BROTHERS OF THE INTERACTIVE CDROM SET WE'RE GOING AFTER THE BIG NAMES THAT WILL KEEP US ON THE SHELF 18 MONTHS FROM NOW ROUNDBOOK PRESIDENT GREG SMITH SAYS OF HIS COMPANY'S NEWEST AND RISKIEST PROJECT A CDROM VERSION OF TOMMY IN MANY WAYS ROUNDBOOK'S EFFORTS ARE SIMILAR TO ANY ENTERTAINMENT ENDEAVORITS STRUGGLE TO BE ORIGINAL YET MARKETABLE TO GET BIG STARS YET KEEP DOWN COSTS BUT A LOOK AT HOW THE TOMMY CDROM CAME ABOUT ALSO REVEALS SOME OF THE QUIRKS AND CHALLENGES THAT COME FROM CREATING A PRODUCT FOR THE NEW WORLD OF INTERACTIVITY CONCEIVED IN THOSE PSYCHEDELIC DAYS WHEN SEX DRUGS AND ROCKANDROLL WERE THE UNHOLY TRINITY TOMMY WAS THE GRANDIOSE ATTEMPT OF THE ROCK GROUP THE WHO TO BREAK THE THREEMINUTESINGLE BOUNDS OF POP MUSIC FIRST RELEASED IN 1969 AS A DOUBLE ALBUM TOMMY HAS APPEARED IN A VARIETY OF INCARNATIONS AS A LIVE PERFORMANCE AT WOODSTOCK A CANADIAN BALLET PRODUCTION A LONDON SYMPHONY ORCHESTRA CONCERT A KEN RUSSELL FILM AND A CURRENT BROADWAY MUSICAL SO WHY NOT AS A NEW COMPUTER PROGRAM THE CDROM IN A WAY HELPS TO TIE UP EVERYTHING I'VE DONE WITH THE PROJECT IN THE LAST 25 YEARS COMPOSERGUITARIST PETE TOWNSHEND SAID AT A RECENT MEDIA SOIREE IN LAS VEGAS ANNOUNCING THE PROJECT THE IDEA OF TOMMY' SUDDENLY HAVING A FUTURE IN A DATABORNE AGE IS AN INCREDIBLE PROMISE WHAT EXCITES ME IS THIS IS A CREATIVE OPPORTUNITY BOTH IN A GRAPHIC SENSE IN A MUSICAL SENSE AND IN A JOURNALISTIC SENSE SUCCESS CERTAINLY ISN'T ASSURED WHEN THE DISK IS RELEASED THIS FALL WHILE PLENTY OF CRITICS HAILED THE ORIGINAL ALBUM AS A POP MASTERPIECE OTHERS WERE LESS KIND AND TOMMY WILL HAVE TO DO A LOT OF ELBOWING FOR THE ATTENTION OF CONSUMERS WHO ALREADY HAVE LOTS OF INTERACTIVE ROCK OPTIONS AMONG THEM CDROM OFFERINGS FROM DAVID BOWIE PETER GABRIEL U2 THE BEATLES AND YES EVEN ELVIS STILL MR TOWNSHEND IS CONVINCED THAT THIS IS ONE OF THE MOST EXCITING MANIFESTATIONS OF TOMMY' YET ROUNDBOOK'S MR SMITH HADN'T EVEN CONSIDERED TURNING TOMMY INTO A TITLE FOR HIS FLEDGLING SOFTWAREPUBLISHING COMPANY WHEN HE VISITED NEW YORK LAST APRIL TO CATCH TOMMY ON BROADWAY WE WEREN'T THINKING OF ANYTHING BUT SEEING A PLAY HE SAYS BUT AFTER WATCHING THE LAVISH PRODUCTION WITH ITS HEAVY USE OF VIDEO SCREENS AND COMPUTERGENERATED VISUAL EFFECTS HE WAS CONVINCED THAT TOMMY HAD AN AFTERLIFE IN THE MULTIMEDIA WORLD A MUTUAL FRIEND ARRANGED A MEETING WITH JOHN HART HEAD OF THE MUSICAL'S COPRODUCER KARDANA PRODUCTIONS INC OF NEW YORK AND SOON MR SMITH WAS PITCHING HIS IDEA TO MR TOWNSHEND AS IT HAPPENS MR TOWNSHEND IS SOMETHING OF A COMPUTER HACKER HIMSELF AND HAS BEEN FASCINATED WITH INTERACTIVE TECHNOLOGY FOR YEARS HE'S REMARKABLY TECHNICAL MR SMITH SAYS THE WHOLE TIME DURING OUR FIRST MEETING PETE WAS TAKING NOTES ON A LITTLE LAPTOP TO GIVE AN IDEA OF WHAT IT HAD IN MIND MR SMITH'S COMPANY PREPARED A PROOFOFCONCEPT DISK SHOWING WHAT AN INTERACTIVE TOMMY MIGHT LOOK LIKE CLICK THE COMPUTER MOUSE ON A PINBALL ICON AT THE BOTTOM OF THE SCREEN AND UP POPS A VIDEO OF ELTON JOHN IN RHINESTONE GLASSES AND PLATFORM SHOES SINGING PINBALL WIZARD IN THE 1975 FILM GUITAR RIFFS BLARE FROM TINY SPEAKERS ATTACHED TO THE COMPUTER AND LYRICS SCROLL IN TIME WITH THE VIDEO THAT DEAF DUMB AND BLIND KID SURE PLAYS A MEAN PINBALL ANOTHER CLICK OF THE MOUSE AND THE SINGER'S BIOGRAPHY APPEARS IT WASN'T UNTIL LAST JULY AFTER AN EXTENSIVE REVIEW OF COMPETING PROPOSALS INCLUDING ONES FROM PARAMOUNT COMMUNICATIONS INC AND VOYAGER CO THAT KARDANA GAVE THE JOB TO ROUNDBOOK WE WENT ABOUT IT LIKE AN INVESTMENT BANKER AND DID A DUE DILIGENCE ON ALL THE MULTIMEDIA PLAYERS MR HART SAYS WHAT YOU FIND IS THAT EVERYBODY IS IN THIS BUSINESS AS OF YESTERDAY BECAUSE THEY'VE BEEN READING ABOUT IT AND THINK THERE'S MONEY TO BE MADE THERE BUT WHEN YOU LOOK AT IT CAREFULLY YOU FIND THAT VERY FEW PLAYERS ARE CAPABLE OF DELIVERING THE HIGHEND QUALITY AND IF THEY ARE THEY MAY NOT BE IN A POSITION TO DISTRIBUTE THE TITLES ALTHOUGH ROUNDBOOK HAD OPENED ITS DOORS ONLY MONTHS BEFORE MR SMITH AND HIS PARTNER FRANCIS M JULIANO WERE AS CLOSE TO MULTIMEDIA OLDTIMERS AS THEY COME HAVING WORKED TOGETHER FOR SEVERAL YEARS BEFORE AT SONY CORP'S ELECTRONICPUBLISHING UNIT AND MERIDIAN DATA INC A SCOTTS VALLEY CALIF MAKER OF CDROM NETWORKING EQUIPMENT AND ROUNDBOOK HAS AN 18 MILLION PACT WITH THE CDROM INDUSTRY'S LEADING RETAIL DISTRIBUTOR TRIBUNE CO'S COMPTON'S NEWMEDIA UNIT WE CAME BACK FROM OUR REVIEW WITH THE BELIEF THAT ROUNDBOOK HAD THE TRACK RECORD AND THE PERSONNEL IN PLACE TO DO THIS MR HART SAYS WORKING WITH A DEVELOPMENT BUDGET OF UP TO 600000 ABOVE THE AVERAGE EVEN FOR A MAJOR ENTERTAINMENTRELATED PROJECT ROUNDBOOK'S HALFDOZEN PROGRAMMERS ARE CURRENTLY UNDERTAKING THE DAUNTING TASK OF COMPRESSING 25 YEARS OF TOMMY ARTIFACTS ONTO A 4 3/4INCH SILVERYPLASTIC DISK USING CURRENT TECHNOLOGY SUCH A DISK CAN HOLD 280000 PAGES OF TEXT OR 600 FULLSCREEN COLOR PHOTOS OR EIGHT HOURS OF SOUND OR 100 MINUTES OF SOMEWHAT JERKY VIDEO OR SOME COMBINATION THERE'S THE HOLIDAY INN STATIONERY ON WHICH MR TOWNSHEND FIRST SCRIBBLED HIS INSPIRATION FOR PINBALL WIZARD THE UNION JACKCOLORED POSTER FROM THE PREMIER PERFORMANCE AT FILLMORE EAST IN NEW YORK THE ORIGINAL SCRIPT FROM THE COLUMBIA PICTURES MOVIE ONE OF THE TOUGHEST PARTS OF ANY POPCULTUREORIENTED CDROM PROJECT IS GETTING THE RIGHTS TO FILM CLIPS SONGS AND LITERATURE THE PROCESS CAN BE NIGHTMARISH SAYS ELLIOTT HOFFMAN AN ATTORNEY FOR MR TOWNSHEND AND KARDANA WHO HAS NEGOTIATED SEVERAL CDROM RIGHTS DEALS THERE ARE PERHAPS 1000 OR MORE SOURCES OF LICENSED RIGHTS THAT WILL WIND UP IN A FULLY DEVELOPED CDROM THAT DEALS WITH SOME CONTEMPORARY MATTER MR HOFFMAN EXPLAINS IN SOME INSTANCES YOU MAY HAVE TO GO BACK TO THE ACTORS OR DIRECTOR IN A FILM WHO HAVE THE RIGHT TO CONTROL THE USES OF THAT FILM IN ANOTHER MEDIUM YOU MAY ALSO HAVE PROBLEMS WITH MUSICLICENSING ENTITIES WHO HAVE NO EXPERIENCE IN MULTIMEDIA AND AREN'T YET COMFORTABLE ON SETTING A PRICE FOR THE RIGHTS BECAUSE THEY'RE AFRAID THEY MAY BE SORRY LATER PURCHASING THE ASSORTED RIGHTS CAN BE AN EXPENSIVE PROPOSITION FOR A SMALL SOFTWARE COMPANY PARTICULARLY GIVEN THAT WITH FEWER THAN SIX MILLION CDROM DRIVES UP AND RUNNING IN AMERICA A GOLD RECORD ON THE MULTIMEDIA CHARTS IS A 45 TITLE THAT SELLS 25000 COPIES ONLY A FEW BREAKTHROUGH TITLES HAVE SOLD INTO THE HUNDREDS OF THOUSANDS ONE WAY SOFTWARE COMPANIES ARE ALLEVIATING THE RIGHTS PROBLEM IS BY CONVINCING LICENSORS THAT CDROM IS A FORM OF FREE ADVERTISING SINCE YOU'RE ONLY USING CLIPS AND PORTIONS OF INFORMATION IF HANDLED PROPERLY THE CDROM CAN HAVE THE EFFECT OF SENDING THE VIEWER BACK TO THE SOURCE PERHAPS BRINGING THEM BACK TO A BOOK THAT HASN'T SOLD IN 20 YEARS OR A SONG THAT HASN'T PLAYED ON THE RADIO IN 20 YEARS MR HOFFMAN SAYS WITH TOMMY THE CLEARING OF RIGHTS HAS PROVED RELATIVELY PAINLESS SINCE MR TOWNSHEND HOLDS MOST OF THEM AND HE'S A PARTNER WITH ROUNDBOOK IN THE PROJECT THE RECORD COMPANY IS STILL HIS THE SONGS WERE PUBLISHED BY HIS COMPANY AND THE SPINE FOR THIS ENTIRE CDROM CONSTRUCT WILL BE A LENGTHY INTERVIEW WITH PETE HIMSELF MR HOFFMAN SAYS THE INTERACTIVE NATURE OF THE MEDIUM ALSO CALLS FOR RETHINKING THE STRUCTURE OF THE STORY TOMMY'S JOURNEY WILL NO LONGER BE A LINEAR TALE BEGINNING WITH HIS BIRTH IT'S A BOY MRS WALKER AND ENDING WITH HIS REDEMPTION LISTENING TO YOU AS ROUNDBOOK TOUTS IT IN A PROMOTIONAL VIDEO TO THE COMPUTER TRADE THE TOMMY' CDROM LETS YOU CREATE YOUR OWN AMAZING JOURNEY TO SEE HEAR FEEL AND TOUCH TOWNSHEND'S REVOLUTIONARY COMPOSITION WHAT FASCINATES ME IS THE FACT THAT YOU CAN TAKE DIFFERENT PATHWAYS THROUGH A DRAMATIC WORK MR TOWNSHEND SAYS JUST LIKE A PINBALL BOUNCING FROM BUMPER TO BUMPER ON ITS WAY DOWN THE TABLE CDROM USERS WILL BE ABLE TO ROCKET BACK AND FORTH BETWEEN BUNDLES OF TOMMY TRIVIA WANT TO SPEND A LITTLE MORE TIME HALLUCINATING WITH THE GYPSY JUST CLICK THE MOUSE AND LISTEN TO TINA TURNER BELT OUT ACID QUEEN THEN COMPARE IT WITH CHERYL FREEMAN'S RENDITION FROM THE MUSICAL PETE WANTS THE AUDIENCE TO BE THE CRITIC MR SMITH SAYS FROM THE INTERVIEW WITH MR TOWNSHEND USERS WILL BE ABLE TO BRANCH OFF AND FIND NUGGETS OF INFORMATION THAT TELL A DIFFERENT STORY FROM HIS HE REALLY WANTS TO HAVE THE CONTRADICTORY STORIES ON THIS DISK ROGER DALTREY REMEMBERS IT THIS WAY KEN RUSSELL REMEMBERS IT THIS WAY AND SO ON' MR SMITH SAYS TO GET AROUND THE TECHNOLOGICAL LIMITATIONS THAT CDROM CURRENTLY HAS WITH VIDEO CLIPS THEY TEND TO LOOK JERKY AND DON'T FILL THE ENTIRE SCREEN ROUNDBOOK WILL USE STILL PHOTOGRAPHS VOICEOVER NARRATION AND TEXT TO BRIDGE THE GAPS BETWEEN BRIEF SNIPPETS OF VIDEO THE EFFECT SAYS MR SMITH WILL BE SIMILAR TO THE KEN BURNS TELEVISION DOCUMENTARY THE CIVIL WAR WHICH RELIED HEAVILY ON PHOTOGRAPHS AND VOICEOVERS WITH THE FINAL SELECTION OF RAW CONTENT FOR THE DISK MADE JUST THREE WEEKS AGO ROUNDBOOK IS RUSHING TO COMPLETE A PROTOTYPE TOMMY FOR THE JUNE COMPUTER ELECTRONICS SHOW DOING TRADE SHOWS AND MAKING AS MUCH NOISE WITH THE PRESS THAT'S HOW YOU GET THE WORD OUT ON A CDROM MR SMITH SAYS COMPTON'S WANTS A CONSUMERREADY VERSION BY AUGUST FOR DISTRIBUTION THIS FALL IF ROUNDBOOK HAS DONE ITS JOB WELL USERS WILL LINE UP LIKE TOMMY'S DISCIPLES AND PAY 7995 APIECE FOR THE CDROM THE DISK WOULD SEEM TO HAVE A BETTERTHANAVERAGE SHOT AT SUCCESS GIVEN THE BROADWAY REVIVAL AND THE FACT THAT MANY WHO GREW UP LISTENING TO THE WHO HAVE SINCE TRADED IN THEIR LOVE BEADS FOR CDROM DRIVES BUT A LOT DEPENDS ON WHETHER TOMMY SEEMS AS ORIGINAL ON CDROM AS IT DID ON VINYL SAYS MR SMITH IF WHAT YOU COME UP WITH RESEMBLES A PRODUCT THAT CAME OUT TWO WEEKS AGO YOU'RE GOING TO GET YOUR LUNCH EATEN MR JEFFERSON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU KARDANA PRODUCTIONS ROUNDED UP AND NEGOTIATED THE RIGHTS TO HUNDRED OF PIECES OF VIDEO AUDIO AND PRINT MATERIAL INCLUDING ITEM PERFORMANCES OF TOMMY BY MARCHING BANDS FROM THE UNIVERSITY OF MICHIGAN US MILITARY ACADEMY AND LOVEJOY HIGH SCHOOL LOVEJOY FLA 9403210139 940321 BAYER AG SEES RECOVERY AHEAD FOR CHEMICAL FIRMS BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL LEVERKUSEN GERMANY BAYER AG CHIEF EXECUTIVE OFFICER MANFRED SCHNEIDER BOLSTERED CONFIDENCE IN A GERMAN CHEMICALINDUSTRY RECOVERY WITH A BULLISH FORECAST FOR THE CURRENT YEAR WE EXPECT BAYER EARNINGS TO RISE SUBSTANTIALLY MR SCHNEIDER SAID FRIDAY AT A NEWS CONFERENCE WHICH HE OPENED WITH A REFERENCE TO A NEW CHEERFULNESS IN THE CHEMICAL INDUSTRY FOR 1994 MR SCHNEIDER PREDICTED A PRETAX PROFIT INCREASE OF 15 TO 20 AT BAYER AFTER FOUR YEARS OF DECLINING EARNINGS HE SAID THIS AMBITIOUS TARGET WOULD BE ACHIEVED MAINLY BY OUR OWN STRENGTH BUT WE ALSO EXPECT SOME STIMULUS FROM THE MARKET ECONOMIC RECOVERY IN NORTH AMERICA AND GROWTH IN EAST ASIA WILL ALSO BE HELPFUL MOREOVER HE ADDED EUROPE AND JAPAN SHOULD NOW BE ON THE REBOUND MR SCHNEIDER SAID AN UPWARD TREND IN THE FOURTH QUARTER OF 1993 WHEN PRETAX PROFIT ROSE BY 18 TO 552 MILLION MARKS 3268 MILLION FROM 469 MILLION MARKS IN THE SAME PERIOD OF 1992 HAD CONTINUED WITH UNEXPECTED INTENSITY IN THE FIRST TWO MONTHS OF THE CURRENT YEAR OUR OPERATING RESULT IMPROVED CONSIDERABLY IN JANUARY AND FEBRUARY HE NOTED MR SCHNEIDER DIDN'T PROVIDE PROFIT FIGURES FOR THE TWO MONTHS BUT SAID SALES ROSE BY 6 TO NEARLY SEVEN BILLION MARKS 414 BILLION ANALYSTS SUPPORT MR SCHNEIDER'S PREDICTION OF A RETURN TO PROFIT GROWTH IN THE CURRENT YEAR LONDONBASED CS FIRST BOSTON ANALYST ALBERT RICHARDS GAVE A NUMBER OF REASONS WHY HE BELIEVES BAYER IS IN AN EXCELLENT POSITION TO CAPITALIZE ON AN UPSWING IN WORLD ECONOMIC GROWTH MR RICHARDS SAID BAYER HAS PURSUED A SUCCESSFUL STRATEGY OF CONSOLIDATION AND GLOBALIZATION THIS PROCESS HAS INCLUDED THE SELLING OF MARGINAL AND UNPROFITABLE BUSINESSES ALONG WITH A CONTINUED STRONG EMPHASIS ON BASIC RESEARCH AND DEVELOPMENT HE ADDED BAYER NOW CONCENTRATES ITS RESOURCES ON THOSE AREAS WHERE IT EITHER HAS OR CAN GAIN A GLOBAL LEADERSHIP POSITION BAYER'S UPBEAT OUTLOOK FOR THE CURRENT YEAR CAME AFTER SIMILARLY OPTIMISTIC EXPECTATIONS EXPRESSED EARLIER LAST WEEK BY BASF AG CHIEF EXECUTIVE OFFICER JUERGEN STRUBE HOECHST AG WILL REPORT TOMORROW GERMAN CHEMICALCOMPANY RESULTS HAVE BEEN AFFECTED BY ECONOMIC WEAKNESS IN EUROPE RECESSION IN GERMANY INCREASING INTERNATIONAL COMPETITION OVERCAPACITY IN MANY SECTORS AND HIGH LABOR COSTS AT HOME THE INDUSTRY HAS RESPONDED WITH INTERNATIONAL EXPANSION IN ASIA AND THE AMERICAS AS THEY RESTRUCTURE AND CUT COSTS IN GERMANY BAYER REPORTED EARLIER THIS MONTH THAT 1993 SALES DECLINED BY 05 TO 41 BILLION MARKS FROM 412 BILLION MARKS IN THE PREVIOUS YEAR AFFECTED BY LOWER PRICES SALES IN GERMANY FELL 11 BY CONTRAST MR SCHNEIDER SAID FOREIGN SALES EXPANDED BRINGING THE SHARE OF FOREIGN BUSINESS TO MORE THAN 80 OF BAYER'S TOTAL FOR 1993 BAYER REPORTED A 13 DROP IN PRETAX PROFIT TO 235 BILLION MARKS FROM 269 BILLION MARKS IN 1992 IN THE SAME PERIOD NET PROFIT FELL BY 12 TO 137 BILLION MARKS FROM 156 BILLION MARKS MR SCHNEIDER SAID EARNINGS WERE AFFECTED BY EXTRAORDINARY CHARGES OF 550 MILLION MARKS FOR IMPROVING EFFICIENCY AND RESTRUCTURING OPERATIONS WITH STAFF REDUCTIONS THROUGH EARLY RETIREMENT ACCOUNTING FOR MOST OF THE CHARGES 9403210138 940321 TECHNOLOGY & HEALTH IBMAPPLE SOFTWARE VENTURE TO UNVEIL MUCHAWAITED OPERATING SYSTEM TODAY BY BART ZIEGLER STAFF REPORTER OF THE WALL STREET JOURNAL PHOENIX LIKE A DEBUTANTE AT THE SEASON'S MOST PRESTIGIOUS BALL IBM AND APPLE COMPUTER'S MUCHWATCHED SOFTWARE VENTURE WILL FINALLY STRUT ITS STUFF HERE TODAY TALIGENT INC WILL PUBLICLY DEMONSTRATE ITS CUTTINGEDGE PRODUCT TO THE COMPUTER LUMINARIES GATHERED HERE FOR PC FORUM ONE OF THE INDUSTRY'S HIGHESTPROFILE ANNUAL GAB FESTS THE NEW SOFTWARE AN OPERATING SYSTEM AIMED AT CHALLENGING MICROSOFT CORP COULD CHANGE THE WAY SPREADSHEETS AND OTHER PROGRAMS ARE CREATED AND USED IT'S HOT STUFF SAYS ANALYST MIKE WEST OF GARTNER GROUP INC BUT THE AUDIENCE MAY BE A TOUGH SELL MANY OF THE 500 OR SO TECHIES HERE MAKE THEIR LIVINGS BY USING MICROSOFT'S DOS AND WINDOWS TO CONTROL THE BASIC FUNCTIONS OF THE COMPUTERS THEY PRODUCE OR AS THE BASIS FOR THE PROGRAMS THEY DEVELOP TALIGENT WON'T DELIVER UNTIL NEXT YEAR BY THEN MICROSOFT IS EXPECTED TO HAVE SHIPPED ITS NEW VERSION OF WINDOWS CODENAMED CHICAGO IT COULD MAKE TALIGENT'S TASK EVEN TOUGHER AND MANY TALIGENT FEATURES WILL APPEAL TO PROGRAMMERS NOT PC USERS FORMED IN LATE 1991 BY INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC TALIGENT EXPECTS TO SPEND SEVERAL HUNDRED MILLION DOLLARS ON THE NEW SYSTEM IN A HIGHRISK AND COSTLY ATTEMPT TO GAIN A PIECE OF THE HUGE MARKET FOR PC SOFTWARE THE TALIGENT SYSTEM LIKE DOS AND WINDOWS WILL ACT AS THE BASE LAYER OF SOFTWARE BUT TALIGENT MAINTAINS THAT ITS NEW SOFTWARE WILL BE ABLE TO RUN ON MYRIAD INCOMPATIBLE MACHINES IT ALSO WILL USE A NEW SLEEK TECHNOLOGY CALLED OBJECT ORIENTATION WHICH LETS SOFTWARE DEVELOPERS WRITE APPLICATIONS MORE RAPIDLY BY LINKING REUSABLE CHUNKS OF SOFTWARE CODE OR OBJECTS MICROSOFT ALSO IS WORKING ON AN OBJECTORIENTED RELEASE KNOWN AS CAIRO AND ALSO DUE NEXT YEAR INSTEAD OF WRITING 10000 LINES OF CODE YOU WRITE 100 SAYS MR WEST EACH LINE IS LINKED TO A BUNDLE OF PROGRAMMING THAT PERFORMS A CERTAIN TASK SUCH AS DRAWING A WINDOW ON THE PC SCREEN THAT WILL ALSO LET LINKEDUP COMPUTERS SWAP DATA MORE EASILY SO THAT SEVERAL PC USERS COULD WORK ON THE SAME DOCUMENT THE CHANGES EACH PERSON MAKES WOULD APPEAR INSTANTLY ON THE OTHER PCS WE THINK IT'S ABOUT TIME FOR COMPUTERS TO ACT THE WAY PEOPLE EXPECT THEM TO ACT NATURALLY SAYS JOSEPH M GUGLIELMI CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TALIGENT CUPERTINO CALIF AT THE COMINGOUT PARTY TODAY HE PLANS TO SHOW OFF A FEATURE CALLED PEOPLE PLACES AND THINGS ONSCREEN IMAGES OF A PHONE FAX MACHINE BUSINESS CARDS AND OTHER ITEMS WILL APPEAR TO MAKE A PHONE CALL A USER MANIPULATING THE COMPUTER MOUSE DRAGS A BUSINESS CARD AND DROPS IT ATOP THE PHONE AND THE SOFTWARE DIALS THE NUMBER ON THE CARD DRAG THE CARD TO THE FAX AND THE SOFTWARE DIALS THE FAX NUMBER ALEX MORROW OF SOFTWARE DEVELOPER LOTUS DEVELOPMENT CORP SAYS TALIGENT IS MORE ADVANCED THAN SOME RIVAL OBJECTORIENTED WARES BUT THAT ALSO MEANS IT IS FAR MORE COMPLEX TO WORK WITH IRONICALLY IN ATTEMPTING TO MAKE SOFTWARE CREATION MORE EFFICIENT TALIGENT MAY ALSO HAVE MADE SOME ASPECTS OF IT MORE COMPLICATED TALIGENT'S MR GUGLIELMI COUNTERS HOWEVER THAT PROGRAMMERS WILL FIND IT PROFOUNDLY SIMPLER TO MAKE LATER REVISIONS TO THEIR DESIGNS A FEW OBJECTS COULD BE UPDATED WITHOUT HAVING TO MESH THE CHANGES WITH THE REST OF THE PROGRAM THE IBMAPPLE VENTURE LATER THIS YEAR WILL BEGIN DISTRIBUTING TOOLS TO LET LOTUS AND OTHER DEVELOPERS START WRITING NEW TALIGENTGEARED PROGRAMS TALIGENT ALSO WILL LICENSE TO IBM APPLE AND HEWLETTPACKARD CO THE DUO'S NEW MINORITY PARTNER A PORTION OF THE OPERATING SYSTEM SO THAT THE NEW APPLICATIONS CAN RUN ON THEIR COMPUTERS STARTING NEXT YEAR EVEN BEFORE THE FULL OPERATING SYSTEM IS READY 9403210137 940321 MONKAUSTIN IN PACT WITH RJ REYNOLDS STOCK ADVANCES 17 FARMVILLE NC MONKAUSTIN INC STOCK JUMPED 17 AS THE COMPANY REACHED AN AGREEMENT IN PRINCIPLE WITH RJ REYNOLDS TOBACCO CO TO BUY TOBACCO FOR RJR'S DOMESTIC OPERATIONS BEGINNING IN 1994 THE AGREEMENT WILL ADD BETWEEN 200 MILLION TO 300 MILLION ANNUALLY TO MONKAUSTIN'S REVENUE BEGINNING IN THE FISCAL YEAR ENDING JUNE 30 1995 THE COMPANY SAID MONKAUSTIN'S REVENUE FOR THE YEAR ENDED JUNE 30 1993 WAS 6114 MILLION THE PACT DOESN'T REQUIRE RJ REYNOLDS THE DOMESTIC TOBACCO UNIT OF RJR NABISCO HOLDING CORP TO BUY A MINIMUM QUANTITY OF TOBACCO MONK SAID MONKAUSTIN'S STOCK CLOSED AT 1850 UP 2625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MONKAUSTIN'S PROFIT MARGIN ON THE ADDITIONAL REVENUE WILL BE LESS THAN THE COMPANY'S OVERALL MARGIN ON ITS OTHER TOBACCO BUSINESS BECAUSE OVERSEAS IT TAKES MORE OF A RISK ON THE SUCCESS OF CROPS AND ON HOLDING INVENTORY AND CROPS ACCORDING TO P LEE THORNTON III VICE PRESIDENT AND TREASURER THE RJR AGREEMENT WILL BE THE LARGEST SINGLE SOURCE OF BUSINESS FOR MONKAUSTIN A TOBACCO BUYER AND PROCESSOR THE OUTSOURCING IS PART OF A COSTCUTTING PROGRAM AT RJ REYNOLDS LAST FALL THE COMPANY ANNOUNCED PLANS TO TRIM ITS WORK FORCE BY ABOUT 1200 WORKERS IN A SIMILAR STEP LAST FALL RJ REYNOLDS CONTRACTED ITS MEDIA BUYING TO AN OUTSIDE COMPANY LEIGH FERST PRUDENTIAL SECURITIES TOBACCO ANALYST SAID THE TOBACCO OUTSOURCING MAY BE RJR'S FIRST STEP TOWARD CONTRACTING OUT TOBACCO PROCESSING AS THE US TOBACCO MARKET SHRINKS 9403210136 940321 COMPUTERS PRICE CUTS BOOST SALES OF SOFTWARE THAT CAN HEAR' BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL YOU MAY BE TALKING TO YOUR COMPUTER SOONER THAN YOU THINK LOWER PRICES ARE LANDING SPEECHRECOGNITION SOFTWARE ONCE PIGEONHOLED AS A PRODUCT FOR THE DISABLED ON THE HARD DRIVES OF A SMALL BUT GROWING NUMBER OF DOCTORS LAWYERS AND EXECUTIVES WHO DON'T WANT TO TYPE THIS LARGEVOCABULARY SPEECH SOFTWARE IS A DIFFERENT BREED FROM SOCALLED COMMANDANDCONTROL PROGRAMS LIKE APPLE COMPUTER INC'S PLAINTALK WHICH LETS COMPUTERS RESPOND TO BRIEF VERBAL COMMANDS SUCH AS OPEN FILE LARGEVOCABULARY PROGRAMS INSTANTLY RECOGNIZE THOUSANDS OF WORDS ALLOWING USERS TO DICTATE MEMOS OR EVEN ENTIRE DOCUMENTS WITH MORE THAN 90 ACCURACY AND AT SPEEDS THAT ARE FASTER THAN MANY USERS CAN TYPE THE CATCH USERS MUST PAUSE BRIEFLY BETWEEN EVERY WORD THEY DICTATE AND MUST LEARN TO PRONOUNCE WORDS MORE OR LESS THE SAME WAY EVERY TIME A PRICE WAR HEATED UP THIS MONTH WHEN DRAGON SYSTEMS INC OF NEWTON MASS THE CLOSELY HELD INDUSTRY LEADER HALVED THE PRICE OF ITS DRAGONDICTATE PROGRAM WHICH RECOGNIZES 30000 WORDS AND RUNS ON PERSONAL COMPUTERS THAT USE MICROSOFT CORP'S MSDOS OPERATING SYSTEM THE PROGRAM NOW LISTS FOR 1000 DOWN FROM 9000 WHEN IT WAS INTRODUCED IN 1990 THIS MONTH ARTICULATE SYSTEMS INC WOBURN MASS WILL INTRODUCE POWERSECRETARY A VERSION OF DRAGONDICTATE THAT RUNS ON APPLE COMPUTERS BY JUNE THE VERSION WILL ALSO RUN ON APPLE'S NEW POWER MACINTOSHES DRAGON'S PRICE CUT WAS A RESPONSE TO MOVES BY TWO RIVALS IN JANUARY INTERNATIONAL BUSINESS MACHINES CORP INTRODUCED ITS 20000WORD PERSONAL DICTATION SYSTEM WHICH RUNS ON IBM'S OS/2 OPERATING SYSTEM FOR 1000 AND LATE LAST YEAR KURZWEIL APPLIED INTELLIGENCE INC WALTHAM MASS HALVED THE PRICE OF ITS 50000WORD KURZWEIL VOICE PROGRAM WHICH RUNS ON MSDOS TO 3000 THESE PRICES ARE STILL TOO HIGH FOR THE AVERAGE CONSUMER ESPECIALLY CONSIDERING THE PROGRAMS' HIDDEN COST THEY REQUIRE 12 TO 16 MEGABYTES OF MEMORY WITH FOUR MEGABYTES THE STANDARD FOR MOST PCS NOW MANY USERS WILL HAVE TO SPEND 400 OR MORE TO ADD MEMORY CHIPS TO RUN THE PROGRAMS ANOTHER OBSTACLE THE PROGRAMS CAN BE TOUGH TO LEARN TO USE JOAN LICHTERMAN AN EDITOR BASED IN BERKELEY CALIF SAYS SHE USED THE FIRST VERSION OF DRAGONDICTATE FOR A COUPLE OF MONTHS BEFORE I WAS REALLY EFFICIENT AT IT AND EVEN THEN THERE WERE TIMES I WANTED TO THROW IT OUT THE WINDOW DRAGON'S SECOND VERSION IS MUCH BETTER AT RECOGNIZING HER WORDS SHE SAYS STILL A SMALL BUT GROWING NUMBER OF PROFESSIONALS LIKE MS LICHTERMAN WILL PAY THE PRICE TO DICTATE IN STILTED SPEECH SOFTWARE RESELLERS SAY SALES HAVE JUMPED SINCE THE LATEST WAVE OF PRICE CUTTING BEGAN LAST DECEMBER ESQUIRE REPORTING CO A LEGAL SERVICES UNIT OF ESQUIRE COMMUNICATIONS LTD OF NEW YORK SAYS THAT WHEN DRAGON CUT ITS PRICES TO 2000 LAST DECEMBER SALES OF DRAGONDICTATE INCREASED TO FIVE OR 10 COPIES A MONTH UP FROM FEWER THAN ONE A MONTH PREVIOUSLY LAWYERS SAY THEY USE THE PROGRAM TO DO MORE WORK WITH FEWER SECRETARIES DUNCAN & CRAIG A LAW FIRM IN EDMONTON ALBERTA BOUGHT 12 DRAGONDICTATE PROGRAMS IN 1991 AND HAS SINCE CUT ITS SUPPORT STAFF IN ITS BANKRUPTCY PRACTICE FOR INSTANCE THE FIRM NOW HAS EIGHT LAWYERS AND FOUR STAFF MEMBERS DOWN FROM NINE LAWYERS AND EIGHT STAFF MEMBERS SAYS PARTNER DARCY READMAN HE ESTIMATES HIS FIRM PAYS 17000 CANADIAN DOLLARS US12420 A YEAR INCLUDING BENEFITS TO SECRETARIES WHO SPEND ABOUT HALF THEIR DAYS TYPING FROM A DICTAPHONE IF YOU CAN REPLACE EVEN HALF OF THAT THAT'S A SUBSTANTIAL AMOUNT OF MONEY HE SAYS HE FIGURES THE 12 SYSTEMS WHICH COST A TOTAL OF 62000 AFTER A VOLUME DISCOUNT PAID FOR THEMSELVES WITHIN SIX MONTHS DOCTORS USE THE PROGRAM TO ENTER COMPLETE OBSERVATIONS ON ELECTRONIC PATIENT CHARTS INSTEAD OF SCRIBBLING CURT DESCRIPTIONS LONGHAND OR DICTATING ESPECIALLY WHEN THEY CAN'T AFFORD A SECRETARY THERE'S NO ONE HERE TO ACT AS A TRANSCRIPTIONIST SAYS ANDREW ROCHESTER A PODIATRIST IN PAINTED POST A HAMLET IN UPSTATE NY I HAVE LOTS OF PATIENTS I WANT TO SPEND TIME WITH THEM I DON'T WANT TO SPEND TIME WRITING THINGS ALTHOUGH SOME USERS COMPLAIN THE PROGRAMS NEVER REALLY GO FASTER THAN 40 WORDS A MINUTE COUNTING CORRECTIONS DR ROCHESTER A COMPUTER WHIZ SAYS HE CAN GET HIS IBM PERSONAL DICTATION SYSTEM TO SPEW OUT TEXT AT A RATE OF 200 WORDS A MINUTE HE DOES IT BY USING MACRO COMMANDS WHICH ALLOW USERS TO STORE ENTIRE PHRASES OR PARAGRAPHS IN ONE VERBAL COMMAND WHEN HE SAYS LAST MD FOR INSTANCE HIS COMPUTER TYPES THE PATIENT LAST SAW THEIR FAMILY PHYSICIAN FOLLOWED BY A COLON OR WHEN HE NAMES A PARTICULAR TREATMENT THE COMPUTER INSTANTLY SPEWS OUT LINES OF TEXT DESCRIBING THE TREATMENT IN DETAIL LAWYERS USE THE SAME STRATEGY TO INSERT BOILERPLATE TEXT INTO CONTRACTS AND OTHER DOCUMENTS ACTUALLY THE LONGER AND MORE COMPLEX THE WORDS THE BETTER THE COMPUTER UNDERSTANDS BECAUSE FEW LONG WORDS SOUND ALIKE WITH USE THE PROGRAMS ADAPT TO INDIVIDUAL SPEAKERS' ACCENTS WHICH MEANS THAT EVEN SOMEONE LIKE HILDRETH NORONHA CAN USE THEM MR NORONHA WHO IS OF PORTUGUESE DESCENT WAS BORN IN INDIA GREW UP SPEAKING BRITISH ENGLISH LIVED FOR SEVEN YEARS IN GERMANY AND NOW WORKS AS A TRANSLATOR IN BALTIMORE HE SAYS THE IBM PROGRAM CAN UNDERSTAND HIS BRITISH PRONUNCIATION LILTING HINDI SPEECH PATTERN AND W'S THAT SOUND LIKE V'S ONE SNAG HE DOESN'T ALWAYS PRONOUNCE THE THE SAME WAY LEADING TO CONFUSION BUT HE WON'T BE TRULY IMPRESSED UNTIL HE CAN FIND A PROGRAM THAT UNDERSTANDS CONTINUOUS SPEECH WHEN HE'S TRANSLATING COMPUTER MANUALS FROM GERMAN TO ENGLISH HE THINKS IN LENGTHY ENGLISH PHRASES BUT HAS TO SLOW DOWN TO DICTATE THEM ONE WORD AT A TIME TO THE COMPUTER BY THE TIME YOU'VE SAID WORD NO 7 YOU FORGET WHAT THE REST OF THE SENTENCE IS GOING TO BE HE SAYS THE SOLUTION WHEN HE'S ON A ROLL HE SPEAKS INTO A TAPE RECORDER AND LATER REDICTATES THE WORDS INTO THE IBM SYSTEM SPEECHRECOGNITION PROGRAMS SHOULD BECOME MUCH EASIER TO USE IN THE NEXT TWO TO THREE YEARS INDUSTRY EXECUTIVES SAY WHEN COMPANIES EXPECT TO SELL CONTINUOUS SPEECH PROGRAMS THAT UNDERSTAND SPEECH WITHOUT PAUSES WHEN THAT HAPPENS AND PRICES FALL TO AROUND 500 THIS WILL REALLY BE MASSMARKETAPPEAL KIND OF STUFF SAYS ANDY MACLEAN GENERAL MANAGER OF SOFTWARE RESELLER DCR INC SAN RAFAEL CALIF UNTIL THEN HE ADDS COMPANIES THAT HOPE SPEECH RECOGNITION WILL BECOME A MASS MARKET PRODUCT ARE FOOLING THEMSELVES 9403210135 940321 BUSINESS BRIEFS PACIFIC TELECOM INC OF VANCOUVER WASH SIGNED LETTERS OF INTENT WITH U S WEST COMMUNICATIONS INC TO BUY 49 TELEPHONE EXCHANGES IN OREGON AND WASHINGTON REPRESENTING ABOUT 34100 CUSTOMER LINES FINANCIAL TERMS WEREN'T DISCLOSED FRED W ALBRECHT GROCERY CO IS SELLING THREE OF ITS CLEVELANDAREA ACME SUPERMARKETS TO RINIREGO SUPERMARKETS INC RINIREGO IS A SUBSIDIARY OF RISER FOODS INC BEDFORD HEIGHTS OHIO WHICH OPERATES 44 RETAIL LOCATIONS IN NORTHEAST OHIO TERMS WEREN'T DISCLOSED CRANE CO STAMFORD CONN BOUGHT SEATTLEBASED ELDEC CORP FOR ABOUT 731 MILLION ELDEC MAKES ELECTROMECHANICAL SYSTEMS FOR AEROSPACE AND DEFENSE APPLICATIONS FLEXTRONICS INTERNATIONAL LTD SAID IT COMPLETED ITS ACQUISITION OF RELEVANT INDUSTRIES INC OF SAN JOSE CALIF TERMS WEREN'T DISCLOSED 9403210134 940321 STEELWORKERS UNION HALTS ALLEGHENY LUDLUM TALKS THE UNION REPRESENTING 3500 WORKERS AT ALLEGHENY LUDLUM CORP SAID IT BROKE OFF CONTRACT NEGOTIATIONS WITH THE COMPANY THE CURRENT CONTRACT COVERING 3500 WORKERS AT SIX PLANTS EXPIRES MARCH 31 THE UNITED STEELWORKERS OF AMERICA SAID THE COMPANY REFUSED TO MOVE ON FUNDAMENTAL ISSUES OF OVERRIDING CONCERN TO OUR MEMBERSHIP INCLUDING SENIORITY IN JOB ASSIGNMENTS THE COMPANY'S ARROGANT RESPONSES TO THESE ISSUES SHOW THAT THEY HAVE NO INTENTION OF DEALING FAIRLY WITH THE UNION ON THE BROADER CONTRACTUAL ISSUES ON THE TABLE A SPOKESMAN FOR ALLEGHENY LUDLUM THE NATION'S LARGEST STAINLESS STEEL MAKER SAID IT WAS DISAPPOINTED ABOUT THE DELAY THINGS HAD BEEN GOING WELL HE SAID AND THE TWO PARTIES WERE DOWN TO THEIR FINAL LOCAL ISSUES BEFORE MOVING ON TO THE LARGER ISSUES OF WAGES AND BENEFITS THE UNITED STEELWORKERS REPRESENT WORKERS AT SIX PLANT LOCATIONS IN INDIANA PENNSYLVANIA CONNECTICUT AND NEW YORK 9403210133 940321 HYDROQUEBEC AGREES TO PAY INUIT NATIVES IF PROJECT GOES AHEAD MONTREAL HYDROQUEBEC HAS TENTATIVELY AGREED TO PAY INUIT NATIVES SEVERAL HUNDRED MILLION DOLLARS OVER 50 YEARS IF IT BUILDS THE CONTROVERSIAL GREAT WHALE HYDROELECTRIC PROJECT IN NORTHERN QUEBEC HYDROQUEBEC OWNED BY THE PROVINCE OF QUEBEC AND INUIT REPRESENTATIVES DECLINED TO COMMENT ON TERMS OF THE AGREEMENT IN PRINCIPLE WHICH HASN'T BEEN SIGNED YET BUT HYDROQUEBEC SAID IT EXPECTS THE SIGNING TO TAKE PLACE BY EARLY APRIL A SPOKESWOMAN FOR THE UTILITY SAID CANADIAN MEDIA REPORTS ON THE ACCORD WERE BROADLY ACCURATE ACCORDING TO A DRAFT COPY OF THE AGREEMENT OBTAINED FROM OTHER SOURCES THE INUIT WOULD AGREE NOT TO RAISE LEGAL OBSTACLES TO THE PROJECT THEY WOULD RECEIVE 30 MILLION CANADIAN DOLLARS US219 MILLION WHEN CONSTRUCTION IS APPROVED AND C3 MILLION A YEAR DURING THE SEVENYEAR CONSTRUCTION PERIOD AFTERWARD THEY WOULD GET C12 MILLION A YEAR FOR 42 YEARS WITH PAYMENTS INDEXED TO INFLATION THE CREE NATIVES OF NORTHERN QUEBEC CONTINUE TO OPPOSE GREAT WHALE ARGUING THAT MASSIVE FLOODING FROM THE PROJECT WILL HARM THEIR HUNTING TERRITORY AND ENDANGER THEIR TRADITIONAL WAY OF LIFE TOTAL COST OF THE 32 MILLIONKILOWATT COMPLEX IS ESTIMATED AT C133 BILLION HYDROQUEBEC'S PLANS CALL FOR IT TO BEGIN OPERATING IN 2003 BUT THE PROJECT IS SUBJECT TO ENVIRONMENTAL REVIEWS IN CANADA 9403210132 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT THE GAMES WE PLAY HEAD TRIP VIRTUAL REALITY IS COMING AND OUTOFTHEHOME ENTERTAINMENT MAY NEVER BE THE SAME BY DAVID J JEFFERSON IN THE ARNOLD SCHWARZENEGGER FILM TOTAL RECALL THE ULTIMATE VACATION IN 2084 AD ISN'T A SPACE TRIP IT'S A HEAD TRIP JUST STOP AT THE LOCAL SHOPPING MALL AND GET A BRAIN IMPLANT THAT GIVES YOU THE ILLUSION OF SPENDING TWO WEEKS ON MARS THIS SCIENCEFICTION SCENARIO ISN'T AS FARFETCHED AS IT SOUNDS TODAY YOU CAN POP INTO AN ARCADE PLUNK DOWN 8 AND BLAST OFF ON A SIMULATED DOGFIGHT AROUND THE RED PLANET THANKS TO THE MUCHBALLYHOOED TECHNOLOGY OF VIRTUAL REALITY OR VR FOR SHORT ONCE AN EXPENSIVE TOY FOR MILITARY PILOTS VR IS NOW WITHIN REACH OF FLYBOYWANNABES ALLOWING THEM TO GLIDE THROUGH THREEDIMENSIONAL COMPUTERGENERATED BATTLESCAPES SHOOT ONE ANOTHER AND LIVE TO BRAG ABOUT IT TECHNOHEADS SAY THE POTENTIAL TO CREATE DIGITAL FANTASYLANDS IS ALMOST LIMITLESS FORGET SPINNING ON MERRYGOROUNDS AND CAREENING DOWN ROLLER COASTERS IN THE DISNEYLAND OF THE FUTURE PATRONS MAY GET THEIR KICKS BY STRAPPING ON HIGHTECH GOGGLES EQUIPPED WITH TINY COMPUTER MONITORS AND SLIP DOWN VIRTUAL WATER SLIDES WITH THEIR FAVORITE SWIMSUIT MODELS IF THE AUDIO AND VISUAL CUES ARE GOOD ENOUGH CUSTOMERS WILL HAVE A HARD TIME DISTINGUISHING VIRTUAL FROM REAL THAT'S THE THEORY ANYWAY THE REALITY VIRTUAL OR OTHERWISE IS THAT VR HAS A WAY TO GO BEFORE IT LIVES UP TO ITS PROMISE FOR NOW VIRTUAL REALITY IS A LATTERDAY FLEA CIRCUS HIGH ON HYPE LOW ON SUBSTANCE AND ONLY MILDLY ENTERTAINING IT'S THE NEW MARKETING BUZZWORD SAYS FRED NEWTON SPOKESMAN FOR THE AMUSEMENT & MUSIC OPERATORS ASSOCIATION CHICAGO WHICH SHOWED OFF THE LATEST VR OFFERINGS AT A RECENT TRADE SHOW IN ANAHEIM CALIF JUDGING FROM THE DISPLAYS VR IS STILL IN ITS INFANCY AT VISIONS OF REALITY CORP'S BOOTH LYCRACLAD FLIGHT INSTRUCTORS BECKON THE CURIOUS TO STEP INTO A JETSON'SSTYLE SPACECRAFT SLIP ON A VISION IMMERSION MODULE HEADSET AND HEAD FOR THE STARS THE INTENDED EFFECT WAS TO IMMERSE RIDERS IN A THREEDIMENSIONAL VIDEO GAME CALLED CYBERGATE WHERE THEY WOULD BATTLE ONE ANOTHER FOR CONTROL OF THE LAST REMAINING INHABITABLE PLANET IN THE UNIVERSE BUT THE CRUDE LIQUIDCRYSTAL VISUAL DISPLAYS IN THE HEADSETS MAKE CYBERGATE SEEM A CLOSER COUSIN OF PONG THAN MORTAL KOMBAT AND THE BLIZZARD OF POD CONTROL INSTRUCTIONS FROM THE FLIGHT ATTENDANTS ARE MORE DAUNTING THAN A VCR MANUAL WORSE MORE THAN A FEW NOVICE CYBERPILOTS WALK AWAY SPACESICK FROM THE JARRING VISUAL DISPLAYS AND THE CLAUSTROPHOBIC SWEATINDUCING FEEL OF THE HEADSETS IT'S BEEN A REAL TECHNICAL CHALLENGE SAYS KEN STONE PROJECT ADMINISTRATOR FOR VISIONS OF REALITY BASED IN IRVINE CALIF EACH TRIP 10 DESPITE THE SHORTCOMINGS IT WILL CONSTANTLY GET BETTER MR STONE PROMISES THE COMPANY IS BETTING THAT FOLKS WILL PAY 10 EACH TO GET A PEEK AT EVEN PRIMITIVE VR IT IS ABOUT TO OPEN ITS FIRST ARCADE IN NEWPORT BEACH CALIF AND SAYS IT WILL HAVE A CHAIN OF 150 WITHIN 18 MONTHS JUDGING FROM THE SUCCESS OF OTHER ATTRACTIONS THAT BILL THEMSELVES AS VIRTUAL VISIONS OF REALITY'S VENTURE HAS A GOOD CHANCE TO SUCCEED AT A STOREFRONT ARCADE CALLED VIRTUAL WORLD IN WALNUT CREEK CALIF CUSTOMERS SHELL OUT 7 TO 9 APIECE FOR WHAT AMOUNTS TO A 10MINUTE VIDEO GAME WITH BGRADE GRAPHICS PLAYED IN SINGLESEAT CAPSULES DECKED OUT WITH STEREO SPEAKERS AND A DAZZLING ARRAY OF USELESS BUTTONS DO CUSTOMERS FEEL CHEATED APPARENTLY NOT GIVEN THAT SOME HAVE PLAYED THE GAME MORE THAN 2000 TIMES AT VIRTUAL WORLD A LOT OF PEOPLE WILL ARGUE WHETHER WHAT WE PRESENT IS VIRTUAL REALITY THAT MISSES THE POINT WE DON'T SELL THE GRAPHICS WE SELL A GOOD TIME SAYS TIM DISNEY CHAIRMAN AND CHIEF EXECUTIVE OF VIRTUAL WORLD ENTERTAINMENT THE BURBANK CALIF COMPANY THAT IS DEVELOPING THE VIRTUAL WORLD ENTERTAINMENT CENTERS WHAT VIRTUAL WORLD LACKS IN ACTUAL VIRTUALREALITY TECHNOLOGY NO WRAPAROUND GOGGLES OR SENSORY MITTENS HERE IT TRIES TO MAKE UP FOR WITH EYECATCHING PACKAGING AN IDEA MR DISNEY HAS CLEARLY BORROWED FROM HIS FAMOUS GREATUNCLE WALT VIRTUAL WORLD PLAYERS DON'T JUST SIDLE UP TO THE VIDEO GAMES DROP IN SOME CHANGE AND START SHOOTING FIRST THEY'RE ISSUED NICKNAMES LIKE BLUECOMET OR PUPSTER THEN THEY WATCH A SLICK MISSION BRIEFING VIDEO AND GO THROUGH A DECONTAMINATION CHAMBER BEFORE HEADING INTO THE FUTURISTIC CONTAINMENT BAY WHERE THE VIDEO GAMES ARE TIED TOGETHER VIA A COMPUTER NETWORK ALLOWING PLAYERS TO COMPETE AGAINST ONE ANOTHER AFTERWARD PLAYERS CAN KICK BACK IN A SAFARITHEMED EXPLORER'S LOUNGE AND NURSE ENZYMERICH SMART DRINKS AS THEY REVIEW A COMPUTER PRINTOUT OF THEIR PERFORMANCE AWESOME BOOSTER POWER SHOWN BY PUPSTER BLUECOMET'S SPECK GOES DOWN IN FLAMES ALREADY VIRTUAL WORLD HAS GAME CENTERS IN CHICAGO TOKYO SAN DIEGO AND HOUSTON AND MR DISNEY HOPES TO HAVE 25 LOCATIONS IN THE US AND 10 OVERSEAS WITHIN THREE YEARS HE BELIEVES THE FUTURE OF OUTOFHOME ENTERTAINMENT ISN'T IN BILLIONDOLLAR THEME PARKS LIKE THOSE BEARING HIS FAMILY MONIKER RATHER MR DISNEY THINKS THE GROWTH WILL BE IN SOCALLED LOCATIONBASED ENTERTAINMENTARCADES WITH HIGHTECH MOTIONSIMULATORS AND VIRTUALREALITY ATTRACTIONS THAT CAN BE WEDGED INTO URBAN SHOPPING MALLS AT A FRACTION OF THE COST OF A MEGAPARK A THEME PARK TAKES UP SEVERAL HUNDRED ACRES VIRTUAL WORLD FITS INTO A 6000SQUAREFOOT SHOP SEGA ENTERPRISES LTD THE TOKYO VIDEOGAME MAKER IS ALSO LAUNCHING A CHAIN OF MINITHEME PARKS USING VIRTUALREALITY TECHNOLOGY WITH A PROTOTYPE OPENING THIS MONTH IN OSAKA JAPAN IN THE US SEGA RECENTLY OPENED THE 55 MILLION VIRTUALAND HIGHTECH ARCADE AT LUXOR RESORT IN LAS VEGAS AND IT'S PLANNING AN ENTERTAINMENT ATTRACTION AT MCA INC'S UNIVERSAL STUDIOS HOLLYWOOD THAT WILL COST AN ESTIMATED 20 MILLION THE STRATEGY MAKES SENSE GIVEN THE RUNAWAY SUCCESS OF ARCADES WHERE TEENAGERS PLUNK QUARTERS INTO VIDEO GAMES FASTER THAN GAMBLERS AT ONEARMED BANDITS ARCADE GAMES HAVE BECOME A 75 BILLION BUSINESS IN THE US THOUGH A NASCENT MARKET SEGMENT VIRTUALREALITYTYPE GAMES ALREADY RAKE IN MORE THAN 100 MILLION ANNUALLY AT CIRCUS CIRCUS IN LAS VEGAS TEENS WITH CASTIRON STOMACHS WAIT IN LONG LINES TO RIDE SEGA'S R360 A VIDEO GAME PLAYED INSIDE A TWIRLING CAPSULE THAT MIMICS THE MOVEMENTS OF A CLOTHES DRYER AT SAN FRANCISCO'S PIER 39 TOURISTS PAY 3 TO COMPETE AGAINST ONE ANOTHER AS GUNNERS ON THE STARSHIP DRAGOON IN NAMCO'S GALAXIAN 3 AT THE SHERMAN OAKS GALLERIA IN THE SAN FERNANDO VALLEY AREA OF LOS ANGELES VALLEY GIRLS AND BOYS SLIP ON VIRTUALREALITY HELMETS AND STALK FUTURISTIC BADDIES IN DACTYL NIGHTMARE FROM VIRTUALITY GROUP PLC OF ENGLAND HEAVYHITTERS SUCH AS SONY CORP MATSUSHITA ELECTRIC INDUSTRIAL CO TIME WARNER INC PARAMOUNT COMMUNICATIONS INC AMERICAN TELEPHONE & TELEGRAPH CO AND WALT DISNEY CO ARE ALL LOOKING INTO VR BUT HAVE SO FAR HELD BACK FROM BRINGING ENTERTAINMENT PRODUCTS TO MARKET AT LEAST ONE BIG COMPANY GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO HAS ALREADY GIVEN UP ON VIRTUAL ENTERTAINMENT WITH MUCH FANFARE IN LATE 1992 HUGHES TEAMED WITH DIRECTOR GEORGE LUCAS'S LUCASARTS ENTERTAINMENT CO TO DEVELOP A VR SPACEFLIGHT ATTRACTION CALLED MIRAGE FOR AMUSEMENT PARKS AND ENTERTAINMENT CENTERS BUT AFTER BUILDING A PROTOTYPE HUGHES GAVE UP FINDING THAT IT JUST COULDN'T PRODUCE THE PRODUCT CHEAPLY ENOUGH THE ECONOMIC MODELS DIDN'T REALLY PAN OUT SAYS DWIGHT HUMPHREY VICE PRESIDENT OF BUSINESS DEVELOPMENT FOR ENTERTAINMENT AND VISUAL SYSTEMS FOR THE HUGHES TRAINING INC UNIT HUGHES COULDN'T GET THE COST OF EACH TWOPERSON MIRAGE GAME UNIT BELOW THE 200000 TO 300000 THAT WOULD HAVE MADE TICKET PRICES AFFORDABLE HE SAYS THE PROBLEM WITH APPLYING VR TECHNOLOGY TO THEMEPARK RIDES IS THE LOW THROUGHPUT OR NUMBER OF BODIES YOU CAN GET IN AND OUT OF THE RIDE EACH HOUR IN A VIRTUALREALITY ARCADE GAME IT CAN TAKE THREE TO FOUR MINUTES JUST TO PUT THE HEADSET ON BUT IN A THEME PARK WE NEED TO PUT A MINIMUM OF 1000 TO 1500 PEOPLE AN HOUR THROUGH AN ATTRACTION EXPLAINS ROBERT PITTMAN WHO RUNS TIME WARNER'S SIX FLAGS THEME PARKS IWERKS ENTERTAINMENT INC BURBANK CALIF HAS TRIED TO OVERCOME THIS PROBLEM IN ITS NEW VIRTUAL ADVENTURES SUBMARINE ATTRACTION BY PACKING SIX PLAYERS INTO EACH GAME STATION AND DOING AWAY WITH EXPENSIVE WRAPAROUND VR GOGGLES IN FAVOR OF 3D GLASSES THE ONLY WAY TO HAVE THE LOW COST AND THE HIGHEND GRAPHICS IS TO HAVE A SHARED EXPERIENCE SAYS IWERKS CHAIRMAN STAN KINSEY NOTING THAT THE PERSTATION COST OF VIRTUAL ADVENTURES IS ONLY 40000 ALLOWING FOR A TICKET PRICE OF ABOUT 5 PER RIDE STILL SALES OF VIRTUAL ADVENTURES TO THEME PARKS AND ARCADES HAVEN'T EXACTLY BEEN BRISK ONLY A HANDFUL OF AGREEMENTS ARE CLOSE TO COMPLETION AND MR KINSEY THINKS IT WILL TAKE A BIG ENTERTAINMENT COMPANY JUMPING INTO VR BEFORE THE BUSINESS REALLY FLIES WHAT WE CAN'T WAIT FOR IS DISNEY'S FIRST VIRTUALREALITY ATTRACTION TO LEGITIMIZE THE INDUSTRY HE SAYS IT WAS DISNEY AFTER ALL THAT MADE FLIGHT SIMULATORS A THEMEPARK STAPLE WITH ITS INTRODUCTION OF STAR TOURS AT DISNEYLAND IN 1987 LAUNCHING A SLEW OF IMITATORS INCLUDING IWERKS DISNEY HAS BEEN TIGHTLIPPED ABOUT ITS PLANS FOR VIRTUAL REALITY BUT LAST YEAR IT ACQUIRED A LONG ISLAND CONSULTING FIRM OWNED BY VR GURU BRAN FERREN WHO IS NOW AN EXECUTIVE AT DISNEY'S IMAGINEERING UNIT WHICH DREAMS UP NEW THEMEPARK ATTRACTIONS MR FERREN WON'T SAY WHAT EXACTLY HE'S DOING FOR DISNEY BUT HE DOES ALLOW THAT VIRTUAL REALITY IS THE ULTIMATE COMMUNICATIONS TOOL PROFOUNDLY IMPORTANT TO THE ENTIRE CULTURE SOCIETY AND THEREFORE THEME PARKS YET MR FERREN WORRIES THAT CONSUMERS MIGHT GET TURNED OFF BY THE VIRTUAL HYPE BEFORE THEY GET TO SEE THE REAL THING MY ONLY HOPE IS THAT WE SURVIVE THE EMBARRASSING DISPLAY OF REALLY AWFUL PRODUCTS PEOPLE ARE CALLING VIRTUAL REALITY SO THAT IT DOESN'T SET THE INDUSTRY BACK 10 OR 15 YEARS HE SAYS MR JEFFERSON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9403210131 940321 WHO'S NEWS NATIONAL FUEL GAS CO NATIONAL FUEL GAS CO BUFFALO NY PHILIP C ACKERMAN 50 YEARS OLD SENIOR VICE PRESIDENT WAS ELECTED A DIRECTOR OF THIS OIL AND NATURAL GAS UTILITY HOLDING COMPANY HE FILLS A VACANCY ON THE BOARD CREATED BY THE DEATH OF SISTER M LAWREACE ANTOUN WHO HAD SERVED AS A DIRECTOR SINCE 1980 NATIONAL FUEL GAS NOW HAS EIGHT BOARD MEMBERS MR ACKERMAN WHOSE TERM EXPIRES AT THE 1995 ANNUAL MEETING IS ALSO PRESIDENT OF FIVE OF THE COMPANY'S UNITSSENECA RESOURCES CORP EMPIRE EXPLORATION INC UTILITY CONSTRUCTORS INC HIGHLAND LAND & MINERALS INC AND PENNYORK ENERGY CORP 9403210130 940321 MARKETING & MEDIA ADVERTISING SONY TO UNLEASH A MINIDISC BLITZ IN BATTLE WITH PHILIPS'S CASSETTES BY JEFFREY A TRACHTENBERG GET READY FOR ROUND TWO OF MINIDISC VS THE DIGITAL COMPACT CASSETTE IN ITS BIGGEST MARKETING OFFENSIVE IN YEARS SONY CORP WILL KICK OFF A MULTIMILLIONDOLLAR CAMPAIGN NEXT MONTH AIMED AT BOOSTING SALES OF ITS NEWLY REDESIGNED MINIDISC PLAYER THE MEDIA BLITZ WILL INCLUDE COUPONS REDEEMABLE FOR FREE SONY MINIDISCS EXTENSIVE MAGAZINE ADVERTISING AND A GIVEAWAY PROGRAM TIED TO ROLLING STONE MAGAZINE THE CAMPAIGN WILL HIGHLIGHT SIX NEW PORTABLE HOME AND AUTO MINIDISC MODELS RANGING IN PRICE FROM 54995 FOR A PORTABLE WALKMAN PLAYER TO 129995 FOR A FOURDISK INCAR CHANGER THE MINIDISC WAS INTRODUCED IN THE US IN LATE 1992 AS A PORTABLE DIGITAL MACHINE THAT RECORDED ON AS WELL AS PLAYED 25INCH COMPACT DISKS AT ABOUT THE SAME TIME ARCHRIVAL PHILIPS ELECTRONICS NV LAUNCHED ITS OWN LINE OF DIGITAL COMPACT CASSETTE PLAYERS A RECORDABLE CASSETTE DEVICE THAT PHILIPS SAYS PROVIDES COMPACT DISKQUALITY SOUND EACH WANTS TO BE THE SUCCESSOR TO TODAY'S AUDIOCASSETTE SO FAR SALES OF BOTH HAVE BEEN MODEST THE ELECTRONICS INDUSTRY SOLD ABOUT 50000 MINIDISCS IN THE US IN THE FIRST 12 MONTHS WHILE AN ESTIMATED 30000 DIGITAL COMPACT CASSETTE PLAYERS WERE PURCHASED IN THE US DURING THE SAME PERIOD SONY STILL HASN'T YET SATISFACTORILY EXPLAINED WHY CONSUMERS SHOULD BUY THEIR PLAYERS WHILE THE PHILIPS PLAYER IS TOO EXPENSIVE SAYS PAUL GLUCKMAN MANAGING EDITOR OF AUDIO WEEK A TRADE PUBLICATION MR GLUCKMAN ADDS THAT ONLY ABOUT 35000 COMPACT DISK PLAYERS WERE SOLD IN THE FIRST YEAR AFTER BEING INTRODUCED IN 1983 INDICATING IT IS TOO EARLY TO DETERMINE THE SUCCESS OR FAILURE OF THE TWO NEW COMPETING TECHNOLOGIES MR GLUCKMAN NOTES THAT A CONSUMER CAN PURCHASE A DECENT PLAYBACKONLY CASSETTE TAPE PLAYER FOR 30 TO 100 BY COMPARISON HE SAYS THE PHILIPS PORTABLE PLAYBACKONLY DIGITAL COMPACT CASSETTE PLAYER LISTS FOR 549 PHILIPS IS POSITIONING THEIR PLAYER AS A LONGTERM REPLACEMENT FOR EXISTING MUSIC CASSETTES BUT CONSUMERS ARE ACCUSTOMED TO COMMODITYPRICED PERSONAL PORTABLE PLAYERS SAYS MR GLUCKMAN PHILIPS HAS A LONG WAY TO GO BEFORE THEY REACH THE ECONOMIES OF SCALE WHICH WILL ENABLE THEM TO LOWER THEIR PRICES TO MAKE THIS A MORE PALATABLE PRODUCT FOR THE MASSES ALTHOUGH MUSIC RETAILERS HAVE BALKED AT STOCKING MANY MINIDISC TITLES CITING SPACE LIMITATIONS SONY EXECUTIVES REMAIN CONVINCED THAT THEIR PLAYER WILL BECOME A HUGE SELLER IN THE US AND HAVE CREATED A THREEPRONGED MARKETING OFFENSIVE DESIGNED TO DOUBLE INDUSTRY SALES TO 100000 UNITS IN 1994 IN A COSTLY PROMOTION SET TO START APRIL 1 AND CONTINUE THROUGH DEC 31 SHOPPERS WHO PURCHASE A NEW SONY PLAYBACKONLY MINIDISC WILL RECEIVE COUPONS ENTITLING THEM TO UP TO 300 OF SONY MINIDISC RECORDINGS AT RETAILERS ACROSS THE COUNTRY THE COUPONS KNOWN AS SONY MINI MONEY CAN BE REDEEMED THROUGH MARCH 31 1995 FOR RECORDINGS BY SUCH PERFORMERS AS BRUCE SPRINGSTEEN PEARL JAM AND ALICE IN CHAINS THERE ARE AN ESTIMATED 350 MINIDISC TITLES AVAILABLE IN THIS COUNTRY OF WHICH SONY PROVIDES MORE THAN 200 LATER THIS SPRING SONY WILL BEGIN A SERIES OF ADS IN SUCH PUBLICATIONS AS STEREO REVIEW AUDIO ROLLING STONE SPIN PREMIERE AND MEN'S JOURNAL WE'RE GOING TO EXPLAIN WHY CONSUMERS SHOULD CONSIDER THE MINIDISC AS A REPLACEMENT FOR THEIR CASSETTE PLAYERS SAYS MARTY HOMLISH SENIOR VICE PRESIDENT OF AUDIO PRODUCTS AT SONY ELECTRONICS INC THE US CONSUMER ELECTRONICS ARM OF SONY CORP MUCH OF THE ADVERTISING WILL ZERO IN ON THE EASE OF FINDING A PARTICULAR TRACK WITH A DISK AND THE FACT THAT DISKS WON'T STRETCH OR PULL OUT OF SHAPE AS TAPE SOMETIMES DOES THE PRINT CAMPAIGN WILL RUN THROUGH DECEMBER SONY IS ALSO BETTING ON A SPECIAL GIVEAWAY PROGRAM IN EARLY SUMMER 11 MILLION SUBSCRIBERS TO ROLLING STONE WILL RECEIVE A MINIDISC SAMPLER ATTACHED TO THE FRONT OF THEIR MAGAZINES TO ENCOURAGE RECIPIENTS TO TAKE THESE SAMPLERS TO RETAIL STORES AND LISTEN SONY HAS ENCODED CERTAIN DISKS WITH MESSAGES THAT IDENTIFY OWNERS AS WINNERS OF PRIZES RANGING FROM MINIDISC PLAYERS TO A 1995 FORD MUSTANG FOR ITS PART PHILIPS WILL INTRODUCE A SECOND GENERATION OF SMALLER LIGHTWEIGHT DIGITAL COMPACT CASSETTE MODELS LATER THIS YEAR INCLUDING ITS FIRST PORTABLE RECORDING UNIT ALTHOUGH PHILIPS DECLINED TO DISCUSS ITS FUTURE MARKETING PLANS A SPOKESMAN SAYS THAT WHEN ITS PORTABLE DIGITAL COMPACT CASSETTE PLAYER WAS INTRODUCED LAST SEPTEMBER PHILIPS LAUNCHED A MAJOR CAMPAIGN THAT INVOLVED ADVERTISING STORE PROMOTION AND DEMONSTRATIONS BY FACTORY REPRESENTATIVES AT ELECTRONIC AND MUSIC STORES OUR ADVANTAGE IS THAT CONSUMERS CAN PLAY THEIR OLD CASSETTES ON OUR MACHINES SAYS GERRY WIRTZ SENIOR MANAGER OF WORLDWIDE SOFTWARE/HARDWARE RELATIONS FOR PHILIPS CONSUMER ELECTRONICS BASED IN EINDHOVEN THE NETHERLANDS WORLDWIDE THERE ARE ONE BILLION CASSETTE PLAYERS IN USE THEY AREN'T GOING TO DISAPPEAR TOMORROW BANANA REPUBLIC A UNIT OF GAP INC IS STARTING A TEST OF TELEVISION ADVERTISING IN CHICAGO TONIGHT DURING THE TELECAST OF THE ACADEMY AWARDS SHOW THE EFFORT MARKS THE FIRST TIME BANANA REPUBLIC HAS ADVERTISED ON TELEVISION SAID PETER ARNELL WHOSE AGENCY ARNELL GROUP NEW YORK CREATED THE SPOTS IN ALL THE CLUTTER AND CRAZINESS THEY'RE A PEACEFUL MOMENT HE SAID EACH COMMERCIAL IN THE THREEWEEK TEST FEATURES A SINGLE PRODUCT SUCH AS A WHITE SHIRT TO THE SOUND OF TRANQUIL SOUL MUSIC SUBTITLES INSTRUCT VIEWERS TO INITIATE CONVERSATIONS FALL IN LOVE AND IN ONE CASE WEAR WHITE SHIRTS NATIONAL MAGAZINE ADS AND INSTORE POSTERS HAVE THE SAME THEME FINALISTS GRAND METROPOLITAN'S CARILLON IMPORTERS NAMED THREE FINALISTS IN THE PITCH FOR STOLICHNAYA VODKA THEY ARE MULLEN ADVERTISING OF WENHAM MASS AND NEW YORK AGENCIES GIGANTE VAZ & PARTNERS AND MARGEOTES FERTITTA & WEISS WHO'S NEWS ART D'ANGELO WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF BACKER SPIELVOGEL BATES INC A UNIT OF SAATCHI & SAATCHI PLC MR D'ANGELO 42 YEARS OLD WAS PREVIOUSLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SAATCHI & SAATCHI HOLDINGS WHICH OVERSAW MAJOR SAATCHI SUBSIDIARY ACQUISITIONS AND DISPOSITIONS IN THE US AND WAS INVOLVED IN RECENT NEGOTIATIONS TO ASSIMILATE MCCAFFREY & MCCALL A FORMER SAATCHI AGENCY INTO BSB 9403210129 940321 CREDIT MARKETS RATE WORRIES CLOUD BOND VIEW BY THOMAS T VOGEL JR AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL IS THE BATTERED BOND MARKET TURNING THE CORNER AND HEADING FOR MORE STABLE GROUND AFTER YIELDS DROPPED LAST TUESDAY AND WEDNESDAY ON NEWS OF REDUCED INFLATION MANY INVESTORS BEGAN TO THINK SO LOW INFLATION IS GOOD FOR BOND INVESTORS BECAUSE IT MEANS LESS EROSION OF THE BUYING POWER OF A FIXED INCOME BUT BY FRIDAY YIELDS HAD RISEN TO NEARLY WHERE THEY WERE A WEEK BEFORE LEAVING THE BENCHMARK 30YEAR TREASURY AT 690 INVESTORS ARE STILL NERVOUS MANY ARE ENCOURAGED THAT YIELDS DIDN'T END THE WEEK HIGHER THAN WHERE THEY STARTED YET IT IS STILL EASIER TO FIND PEOPLE WILLING TO PREDICT A 7 YIELD IN THE WEEKS AHEAD THAN TO FIND PEOPLE PREDICTING 65 AND HIGHER YIELDS MEAN LOWER BOND PRICES LAST WEEK WE WERE IN THE GRIPS OF GLOOM AND DOOM SAID BRUCE WHITEFORD MANAGER OF CHASE US FIXED INCOME A MONEYMANAGEMENT ARM OF CHASE MANHATTAN CORP THIS WEEK WE KIND OF EVENED OUT A BIT BUT PSYCHOLOGY IS STILL NEGATIVE PEOPLE ARE STILL A LITTLE BIT LEARY TO JUMP IN HERE AND BUY BONDS LIKE MANY OTHER POTENTIAL BUYERS OF TREASURY DEBT THESE DAYS MR WHITEFORD SAYS THAT THERE ISN'T ENOUGH INFLATION TO JUSTIFY ALL THE NAILBITING IN THE BOND MARKET STILL HE IS LOATH TO TAKE THE PLUNGE THERE IS VALUE AT THESE LEVELS RIGHT NOW BUT THAT DOESN'T MEAN WE'RE GOING IN AND BUYING BONDS RIGHT NOW HE SAID THIS WEEK WILL BE A MAJOR TEST FOR THE BOND MARKET THE FEDERAL OPEN MARKET COMMITTEE THE POLICYMAKING ARM OF THE FEDERAL RESERVE IS SCHEDULED TO MEET BEGINNING TOMORROW INVESTORS ARE HOLDING THEIR BREATH THE EXPECTED INCREASE IN THE FEDERALFUNDS RATE IS STILL HANGING OVER THE MARKET SAID MR WHITEFORD OF CHASE MANHATTAN THE FEDERALFUNDS RATE IS THE RATE CHARGED ON OVERNIGHT LOANS BETWEEN BANKS MANY EXPECT THE FED TO MOVE QUICKLY TO RAISE SHORTTERM INTEREST RATES AGAIN IN ORDER TO SQUELCH ANY BUILDING INFLATIONARY PRESSURES A NUMBER OF ANALYSTS BELIEVE THE FED STILL NEEDS TO CONVINCE INVESTORS THAT IT IS MAKING A PREEMPTIVE STRIKE AGAINST INFLATION BEFORE IT BECOMES A PROBLEM AND NOT MERELY REACTING TO GROWING INFLATIONARY PRESSURES SPECULATION ABOUT POSSIBLE WHITE HOUSE PRESSURE ON THE FED PUSHED UP BOND YIELDS AND DEPRESSED PRICES ON FRIDAY THE BENCHMARK 30YEAR BOND DROPPED NEARLY 7/8 POINT FRIDAY OR NEARLY 875 FOR A BOND WITH A 1000 FACE VALUE THE DROP WAS MAINLY IN REACTION TO NEWS OF A MEETING FRIDAY MORNING BETWEEN FED CHAIRMAN ALAN GREENSPAN AND PRESIDENT CLINTON AT THE WHITE HOUSE'S INVITATION MR GREENSPAN MET WITH PRESIDENT CLINTON AND SEVERAL OF HIS ADVISERS TO HEAR THE CHAIRMAN'S ANALYSIS OF THE ECONOMIC FUNDAMENTALS PARTICULARLY THE STRENGTH OF THE ECONOMY IN THE FIRST QUARTER ACCORDING TO WHITE HOUSE ECONOMICPOLICY AIDE GENE SPERLING SUCH MEETINGS HAVE BEEN HELD MORE THAN A HALFDOZEN TIMES IN THE PAST YEAR BUT THIS ONE GOT AN ENORMOUS AMOUNT OF ATTENTION BECAUSE WORD OF IT LEAKED OUT IN ADVANCE THE WHITE HOUSE TOOK GREAT PAINS AFTER THE SESSION TO TRY TO CONVINCE REPORTERS THAT IT WASN'T TRYING TO PRESSURE MR GREENSPAN NOT TO RAISE INTEREST RATES WHEN THE FOMC MEETS ROBERT RUBIN HEAD OF THE PRESIDENT'S NATIONAL ECONOMIC COUNCIL WHO INITIATED AND ATTENDED THE MEETING SAID THAT MR GREENSPAN DISCUSSED WHAT HE THOUGHT WAS GOING ON ECONOMICALLY HE ADDED WHAT HE DIDN'T DO IS TELL US WHAT HE'S GOING TO DO AT THE OPENMARKET COMMITTEE AND WHAT WE DIDN'T DO IS CONVEY ANY OPINION ABOUT WHAT HE OUGHT TO DO ALSO PRESENT AT THE HOURLONG SESSION IN THE OVAL OFFICE WERE VICE PRESIDENT GORE CHIEF WHITE HOUSE ECONOMIST LAURA TYSON BUDGET DIRECTOR LEON PANETTA AND PRESIDENTIAL ADVISER GEORGE STEPHANOPOULOS WHITE HOUSE ECONOMIST ALAN BLINDER DIDN'T ATTEND BECAUSE MR CLINTON IS EXPECTED TO NOMINATE HIM TO BE VICE CHAIRMAN OF THE FED WHEN THE FED LAST RAISED THE FEDERALFUNDS RATE ON FEB 4 TO 325 FROM 3 MANY INVESTORS BEGAN TO SECONDGUESS THE FED'S TIMING SINCE THEN INVESTORS HAVE PUSHED UP LONGTERM YIELDS ON SPECULATION THAT PERHAPS THE FED MOVED TOO LATE IT IS WIDELY BELIEVED THAT THE NEXT INCREASE WILL BE TO 35 OR 375 IF THE FED WANTED TO MOVE QUICKLY THE EARLIEST IT WOULD RAISE RATES WOULD PROBABLY BE WEDNESDAY THAT'S BECAUSE THE FIRST CHANCE THE FOMC WOULD HAVE TO VOTE ON A RATE BOOST WOULD BE TOMORROW AFTERNOON LONG AFTER THE FED'S TRADITIONAL 1130 AM INTERVENTION TIME BUT THERE IS A GOOD CHANCE THE FED WILL WAIT LONGER UNTIL IT HAS A BETTER IDEA OF WHAT IS HAPPENING WITH THE ECONOMY SO FAR THIS YEAR A NUMBER OF ANALYSTS THINK THERE'S A BETTER CHANCE THE FED WOULD MOVE TO RAISE RATES AROUND APRIL 1 THE DAY THE MARCH EMPLOYMENT REPORT IS DUE IN ANY CASE MANY BOND INVESTORS ARE STILL SITTING ON CASH RATHER THAN PUTTING MONEY INTO THE MARKET LIKE THE FED THEY WANT TO SEE WHAT'S HAPPENING WITH THE US ECONOMY BEFORE BUYING MORE ONE PERSON WITH PILES OF CASH IS WILLIAM R LEACH DIRECTOR OF FIXED INCOME AT BOSTON CO ASSET MANAGEMENT IN BOSTON BOSTON CO IS KEEPING IN CASH AROUND 10 OF THE 6 BILLION IN FIXEDINCOME INSTITUTIONAL ASSETS IT MANAGES THAT IS ITS HIGHEST CASH LEVEL IN MORE THAN TWO YEARS ARE WE CONCERNED AND NERVOUS ABOUT THE MARKET YES SAYS MR LEACH SOME STUDIES SHOW THAT INFLATIONARY PRESSURES ARE BUILDING HE ADDED INFLATION ISN'T A PROBLEM NOW BUT IT COULD BE IN SIX MONTHS WHICH ISN'T FAR OFF BASED ON ECONOMIC GROWTH OF SOMETHING AROUND 35 AS MEASURED BY ANNUAL GAINS IN THE GROSS DOMESTIC PRODUCT YOU DO HAVE POTENTIAL INFLATIONARY PRESSURES IN 1995 SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC BUT IF THE FED MOVES QUICKLY ENOUGH AND GETS THE FEDERALFUNDS RATE TO 4 THEN I WOULD SAY YOU COULD HEAD OFF ANY INFLATIONARY PRESSURES IN 1995 AMONG THE BONDS AFFECTED BY RISING YIELDS IN A GROWING ECONOMY ARE THE THREE 100YEAR BONDS SOLD LAST YEAR BY WALT DISNEY CO COCACOLA CO AND ABN AMRO BANK NV THE NEW YORK BRANCH OF ABN AMRO HOLDING NV A NETHERLANDS CONCERN PRICES OF THESE BONDS HAVE SAGGED BUT NOT NEARLY AS SHARPLY AS MIGHT BE EXPECTED FOR SECURITIES THAT MATURE 70 YEARS AFTER THE LONGESTLIVED TREASURY BOND BONDS WITH LONGER MATURITIES ARE CONSIDERED MORE VULNERABLE TO INTERESTRATE MOVES AND INFLATION THAN SHORTERTERM BONDS WHOSE INVESTORS GET PAID BACK SOONER DISNEY'S BONDS FOR EXAMPLE WERE QUOTED AT 9592 ON FRIDAY DOWN ABOUT ABOUT FOUR POINTS FROM THEIR OFFERING PRICE LAST JULY OR ABOUT 40 FOR A BOND WITH A 1000 FACE VALUE ACCORDING TO MORGAN STANLEY & CO WHICH UNDERWROTE THE OFFERING THE LATEST PRICE IS DOWN NEARLY 13 POINTS FROM OCTOBER WHEN US INTEREST RATES HIT THE LOWEST LEVELS IN DECADES COCACOLA'S 100YEAR BONDS SOLD SOON AFTER DISNEY'S ARE DOWN ONLY ABOUT TWO POINTS FROM WHEN THEY WERE SOLD ACCORDING TO MERRILL LYNCH & CO WHICH UNDERWROTE THE OFFERING ABN AMRO'S 100YEAR BONDS HAVE DROPPED NEARLY 10 POINTS SAYS MORGAN STANLEY WHICH UNDERWROTE THE OFFERING JUST TWO DAYS BEFORE LONGTERM INTEREST RATES REACHED THEIR LOW POINT IN OCTOBER FOR A COMPARISON CONSIDER HOW US TREASURY DEBT FARED SINCE YIELDS BOTTOMED IN OCTOBER THE PRICE OF THE THENBENCHMARK 625COUPON 30YEAR TREASURY BOND MATURING IN 2023 HAS DROPPED ABOUT 13 POINTS ACCORDING TO MICHAEL KNEBEL A PORTFOLIO MANAGER AT SAFECO LIFE INSURANCE CO A UNIT OF SAFECO CORP WHICH BOUGHT SOME OF THE BONDS FROM ABN AMRO AND WALT DISNEY THESE 100YEAR BONDS MAY BE BENEFITING FROM A PICKUP IN THE ECONOMY THE YIELD GAP OF THESE BONDS OVER 30YEAR TREASURY BONDS HAS ACTUALLY NARROWED SINCE LAST FALL A SIGN OF GROWING DEMAND THEY DON'T RESPOND TO INTERESTRATE MOVEMENTS AS DRAMATICALLY AS YOU MIGHT THINK HE SAID THIS GREATER STABILITY HAS BEEN TRUE FOR THE MOST PART FOR CORPORATES AND FOR THOSE COMPANIES THAT ARE PERCEIVED AS A SAFE BET ESPECIALLY IN A STRENGTHENING ECONOMY US TREASURY NOTES AND BONDS ENDED SHARPLY LOWER FRIDAY FOLLOWING SPECULATION ABOUT THE MEETING BETWEEN THE CENTRAL BANK CHAIRMAN AND PRESIDENT CLINTON THE 10YEAR NOTE DROPPED MORE THAN 1/2 POINT TO 95 16/32 TO YIELD 648 UP FROM 640 ON THURSDAY THE MARKET WAS PRETTY WEAK THERE WAS A LOT OF NERVOUSNESS IN REACTION TO THIS MORNING'S MEETING SAID A MONEYMARKET ECONOMIST FOR KIDDER PEABODY & CO THE FEAR IN THE MARKETPLACE IS THAT THE INDEPENDENCE OF THE FEDERAL RESERVE IS BEING COMPROMISED THE MARKET HAD LITTLE IN THE WAY OF ECONOMIC DATA TO CLING TO LAST WEEK FOLLOWING THE RELEASE OF PRODUCER AND CONSUMER PRICE DATA TUESDAY AND WEDNESDAY 9403210128 940321 CANADA PLANS TO SALVAGE BARGE FILLED WITH OIL THAT SANK YEARS AGO OTTAWA CANADA PROPOSED TO LIFT AND SALVAGE THE IRVING WHALE OIL BARGE THAT SANK OFF THE COUNTRY'S EAST COAST 24 YEARS AGO WITH A CARGO OF FUEL OIL IN AN OPERATION EXPECTED TO COST ABOUT 10 MILLION CANADIAN DOLLARS US73 MILLION THE BARGE WHICH CONTAINS ABOUT 21000 BARRELS OF FUEL OIL IS CONSIDERED A SERIOUS POLLUTION THREAT TO COASTAL WATERS AND BEACHES IT LIES IN 230 FEET OF WATER 37 MILES NORTHEAST OF NORTH POINT PRINCE EDWARD ISLAND ENVIRONMENT MINISTER SHEILA COPPS SAID THE GOVERNMENT INTENDS TO PROCEED WITH THE LIFTING OF THE TANKER BY THE SUMMER OF 1995 PROVIDED THE PLAN IS SUPPORTED BY AN ENVIRONMENTAL ASSESSMENT AND BY A PUBLIC CONSULTATION THE VESSEL IS OWNED BY THE IRVING INDUSTRIAL GROUP OF NEW BRUNSWICK IT SANK BEFORE THE CANADIAN PARLIAMENT PASSED LAWS REQUIRING POLLUTERS TO PAY FOR CLEANUPS THE GOVERNMENT WILL TRY TO RECOVER AS MUCH OF THE SALVAGE COSTS AS POSSIBLE FROM A CANADIAN SHIPOWNERS' ENVIRONMENT FUND AN OFFICIAL SAID 9403210127 940321 CALIFORNIA COURT REJECTS PILGRIM GROUP LIBEL SUIT LOS ANGELES A CALIFORNIA STATE APPEALS COURT THREW OUT PILGRIM GROUP INC'S LIBEL SUIT AGAINST MORNINGSTAR INC OF CHICAGO WHOSE MUTUALFUND NEWSLETTER HAD CRITICIZED TWO OF PILGRIM'S 1993 FUND ADS AS MISLEADING FILED IN STATE SUPERIOR COURT IN LOS ANGELES A YEAR AGO THE COMPLAINT CHALLENGED A MORNINGSTAR NEWSLETTER ARTICLE TITLED LIES DAMN LIES AND FUND ADVERTISEMENTS IN THE ARTICLE MORNINGSTAR CHIDED TWO PILGRIM ADS THAT RAN IN THE WALL STREET JOURNAL FOR ALLEGEDLY GIVING THE IMPRESSION THAT PILGRIM HAD MANAGED THE FIVE BESTPERFORMING MUTUAL FUNDS OF 1992 IN FACT THE NEWSLETTER WROTE THE PILGRIM FUNDS APPEARED TO RANK THAT HIGHLY ONLY WHEN ANALYSED WITHIN NARROWLY DEFINED CATEGORIES PILGRIM FOR ITS PART CONTENDED THE EARLY1993 ADS HAD MADE CLEAR IN A FOOTNOTE THAT EACH FUND WAS RANKED WITHIN ITS OWN CATEGORY A TRIAL COURT DENIED MORNINGSTAR'S MOTION FOR A DEMURRER TO DISMISS THE SUIT BUT ON FRIDAY THE COURT OF APPEAL OF THE STATE OF CALIFORNIA SECOND APPELLATE DISTRICT ORDERED THE TRIAL COURT TO DISMISS THE CASE SAYING IT IS OUR CONSIDERED OPINION PILGRIM CANNOT STATE A CAUSE OF ACTION THE SUIT HAD CHARGED MORNINGSTAR WITH LIBEL PILGRIM OFFICIALS COULDN'T BE REACHED TO COMMENT OVER THE WEEKEND 9403210126 940321 NASD TAKES ACTIONS AGAINST FIRMS BROKERS FINES DISCIPLINARY MOVES STEM FROM VIOLATIONS OF INDUSTRY RULES LAWS BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC SAID IT TOOK DISCIPLINARY ACTIONS AGAINST A NUMBER OF FIRMS AND INDIVIDUALS FOR VIOLATIONS OF SECURITIES LAWS AND RULES PRINCETON AMERICAN EQUITIES CORP PHOENIX WAS FINED 45000 JOINTLY AND SEVERALLY WITH TWO INDIVIDUALS EACH RESPONSIBLE FOR THE FULL AMOUNT THE FIRM ALSO WAS REQUIRED TO PAY 42447 IN RESTITUTION TO CUSTOMERS JOINTLY AND SEVERALLY WITH AN INDIVIDUAL AND WAS EXPELLED FROM NASD MEMBERSHIP THE WASHINGTON DCBASED ASSOCIATION SAID PRINCETON AMERICAN FAILED TO MEET MINIMUM REQUIRED NET CAPITAL AND FAILED TO MAINTAIN ACCURATE BOOKS AND RECORDS AND IT ALSO MADE TRADES WITH PUBLIC CUSTOMERS AT UNREASONABLE MARKUPS DAVID SMITH SECRETARY/TREASURER OF PRINCETON ELECTRONIC PRODUCTS INC THE PARENT OF PRINCETON AMERICAN EQUITIES SAID THE UNIT WAS CLOSED 30 TO 45 DAYS AGO WE THINK THE FINES ARE APPROPRIATE BASED ON THE FACT THAT THE PERSONNEL IN THAT PARTICULAR DIVISION WERE NOT CONDUCTING BUSINESS PROPERLY MR SMITH SAID HE SAID THE NASD DOESN'T LET THE PARENT COMPANY SUPERVISE THE OPERATIONS OF SUBSIDIARIES THERE IS NO WAY IN THE WORLD WE COULD HAVE STRAIGHTENED IT OUT BECAUSE WE WEREN'T ALLOWED MR SMITH SAID HE NOTED THAT PRINCETON AMERICAN WAS A VERY SMALL PART OF THE ASSETS OF THE PARENT AND WAS NEVER A SIGNFICANT REVENUE PRODUCER TWO FIRMS WERE EXPELLED AND FIVE INDIVIDUALS WERE BARRED AND FINED FOR A SERIES OF TRANSACTIONS BACHUS & STRATTON SECURITIES INC POMPANO BEACH FLA AND WASATCH STOCK TRADING INC SALT LAKE CITY WERE EXPELLED BACHUS AND PRINCIPAL SALVATOR ANTHONY LANZA BOCA RATON FLA WERE FINED 200000 JOINTLY AND SEVERALLY AND ORDERED TO DISGORGE 815259 WASATCH AND PRINCIPAL DAN LAWRENCE MAUSS SALT LAKE CITY WERE FINED 250000 JOINTLY AND SEVERALLY AND ORDERED TO DISGORGE 106945 JOINTLY AND SEVERALLY MESSRS LANZA AND MAUSS WERE BARRED BROKER THOMAS EUGENE RUSSO NANUET NY WAS FINED 40000 ORDERED TO DISGORGE 28175 AND BARRED BROKER EDWARD NORMAN LAMARCA BROOKLYN NY WAS FINED 35000 ORDERED TO DISGORGE 13725 AND BARRED BROKER SALVATORE DOMINIC ROMANO STATEN ISLAND NY WAS FINED 20000 ORDERED TO DISGORGE 29506 AND BARRED THE NASD SAID BACHUS SOLD SHARES IT HAD PURCHASED DIRECTLY OR INDIRECTLY FROM ANOTHER ENTITY THROUGH PRINCIPAL TRANSACTONS MR LANZA IT SAID FAILED TO DISCLOSE OR CAUSE BROKERS TO DISCLOSE TO CUSTOMERS THAT THEY WERE PURCHASING COMMON STOCK FROM AN ENTITY CONTROLLED BY MR LANZA RESULTING IN PROFIT TO BACHUS OF 276678 AND THE FIRMS AND INDIVIDUALS CREATED THE APPEARANCE OF TRADING ACTIVITY BY MANIPULATING THE MARKET FOR THE STOCK AMONG OTHER VIOLATIONS THE NASD SAID UNLESS OTHERWISE NOTED NONE OF THE FIRMS OR INDIVIDUALS COULD BE REACHED FOR COMMENT DWS SECURITIES CORP SONORA CALIF PRINCIPAL STEPHEN MICHAEL RANGEL AND PRINCIPAL HUGH SCOTT LIDDLE JR MODESTO CALIF WERE FINED 394550 JOINTLY AND SEVERALLY AND REQUIRED TO MAKE WRITTEN OFFERS OF RESCISSION TO INVESTORS ANY AMOUNTS THE RESPONDENTS PAY TO THE CUSTOMERS WILL BE APPLIED AGAINST THE FINE THE FIRM WAS EXPELLED AND THE TWO MEN BARRED THE SECURITIES AND EXCHANGE COMMISSION IMPOSED THE SANCTIONS BASED ON FINDINGS OF FRAUDULENT MISREPRESENTATIONS AND OMISSIONS ABOUT THE USE OF OFFERING PROCEEDS IN TWO PRIVATE OFFERINGS RICHFIELD SECURITIES INC ENGLEWOOD COLO AND PRINCIPAL PHILIP JAMES DAVIS LITTLETON COLO WERE EACH FINED 30133 AND SUSPENDED FOR ONE YEAR THE PENALTIES WERE AFFIRMED BY THE SEC FOLLOWING AN APPEAL THE NASD SAID THE FIRM CHARGED UNFAIR AND UNREASONABLE PRICES IN SELLING STOCK BRYN MAWR INVESTMENT GROUP INC ROSEMONT PENN WAS FINED 14000 JOINTLY AND SEVERALLY WITH PRINCIPAL THOMAS J FALZANI AND THE SAME AMOUNT WITH PRINCIPAL HOWARD H FLESHER THEY DIDN'T ADMIT OR DENY FINDINGS OF MAKING SECURITIES SALES AT UNREASONABLE PRICES PAINEWEBBER INC RIVERSIDE CALIF WAS FINED 50000 AND PRINCIPAL JOHN L SHERMAN WAS FINED 20000 BROKER JOHN K COOLIDGE WAS FINED 10000 THEY DIDN'T ADMIT OR DENY ALLEGATIONS THAT THE FIRM ACTING THROUGH THE TWO MEN FAILED TO SUPERVISE PROPERLY THE ACTIVITIES OF TWO BROKERS THE PAINEWEBBER GROUP INC UNIT SAID TWO BROKERS WERE TERMINATED IN 1992 WHEN THE COMPANY DISCOVERED IMPROPRIETIES AND THAT IT COMPENSATED CLIENTS FOR LOSSES ATTRIBUTABLE TO THE MISCONDUCT IT ADDED THAT THE COMPANY AND TWO SUPERVISORY EMPLOYEES MR SHERMAN AND MR COOLIDGE CONSENTED TO THE PENALTIES TO RESOLVE THE PROCEEDINGS IN AN EXPEDITIOUS MANNER AND TO CONTINUE BUSINESS AS NORMAL M RIMSON & CO NEW YORK AND PRINCIPAL MOSHE RIMSON WERE FINED 15000 JOINTLY AND SEVERALLY AND ORDERED TO DISGORGE 72641 TO CUSTOMERS MR RIMSON WAS SUSPENDED AS A GENERAL SECURITIES PRINCIPAL FOR 15 BUSINESS DAYS AND BROKER IRVING LEVINE WOODMERE NY WAS FINED 15000 AND SUSPENDED FOR 15 BUSINESS DAYS THEY DIDN'T ADMIT OR DENY CHARGES OF SELLING STOCK AT UNFAIR MARKUPS AND FAILING TO PROPERLY SUPERVISE CERTAIN EMPLOYEES BARRON CHASE SECURITIES INC BOCA RATON WAS FINED 10000 WITHOUT ADMITTING OR DENYING ALLEGATIONS CONCERNING USE OF MISLEADING PROMOTIONAL MATERIALS INDIVIDUALS DISCIPLINED INCLUDED THEODORE ALLOCCA HUNTINGTON NY SUSPENDED FOR THREE BUSINESS DAYS BASED ON FINDINGS THAT HE FAILED TO PAY A 67556 ARBITRATION AWARD DOUGLAS PAUL BEHL LOOMIS CALIF FINED 4199 AND SUSPENDED FOR 10 BUSINESS DAYS NICHOLAS A CHAMBOS UTICA MICH FINED 20000 BARRED AND ORDERED TO PAY 1132 IN RESTITUTION TO A MEMBER FIRM WILLIAM G COKER JR BALTIMORE FINED 30000 BARRED AND ORDERED TO PAY 2027 IN RESTITUTION ALSO GREGORY MONCUR COZZENS FREMONT CALIF FINED 162375 AND BARRED FOR MISAPPROPRIATION ANDINOS P DAMALAS VIRGINIA BEACH VA FINED 15000 BARRED AND REQUIRED TO PAY 2993 IN RESTITUTION JOSEPH STEPHEN FISHER SAN RAMON CALIF FINED 20000 AND BARRED KIMBERLEY E GORUM MOBILE ALA FINED 25000 BARRED AND ORDERED TO PAY 857 IN RESTITUTION WITHOUT ADMITTING OR DENYING ALLEGATIONS KEITH DARNELL GREENE DAYTON OHIO FINED 5000 AND BARRED STEPHEN CRAIG HARRISON MERRIAM KAN FINED 10000 ROLAND INFEANYI IHEJIETO CHICAGO FINED 25000 BARRED AND REQUIRED TO PAY 3620 IN RESTITUTION ALSO JOHN P LANIGAN CORAPOLIS PA FINED 5000 AND BARRED SANDRA F LONG NASHVILLE TENN FINED 5000 AND SUSPENDED FOR TWO WEEKS WITHOUT ADMITTING OR DENYING ALLEGATIONS CONRAD C LYSIAK SPOKANE WASH FINED 15000 AND SUSPENDED FOR 10 DAYS THE ACTION HAS BEEN APPEALED TO A FEDERAL COURT OF APPEALS MR LYSIAK SAID HE IS NO LONGER AFFILIATED WITH AN NASD FIRM NOR DOES HE INTEND TO BE IN THE FUTURE MEANWHILE HE SAID HE WOULD ACCEPT WHATEVER THE COURT DECIDES JAMES Y PALMER JACKSON MISS FINED 5000 AND SUSPENDED FOR TWO WEEKS WITHOUT ADMITTING OR DENYING ALLEGATIONS CHRISTIAN JOHN RANDLE MOUNT PROSPECT ILL FINED 5000 AND SUSPENDED FOR 30 DAYS COMMENCING FEB 28 AND CONCLUDING MARCH 29 WILLIAM FREDERICK REMBERT TORRANCE CALIF FINED 10000 AND BARRED SANCTIONS AFFIRMED BY THE SEC MR REMBERT DISPUTED NASD'S CLAIM THAT HIS DISCIPLINARY CASE HAD BEEN SETTLED I'VE APPEALED THE DECISION HE SAID AND HAS RECEIVED NO SEC NOTICE OF A DECISION MOREOVER MR REMBERT SAID HE HAS MADE CLAIMS AGAINST HIS FORMER EMPLOYER FOR 150000 IN UNPAID COMMISSIONS OWED TO HIM KENNETH M SALZMAN BALTIMORE FINED 120000 BARRED AND ORDERED TO PAY 28536 IN RESTITUTION FUNDS THE NASD SAID HE CONVERTED TO HIS OWN USE ALSO MARTIN CONWAY SMITH MORAGA CALIF SUSPENDED FOR 30 BUSINESS DAYS ROD M SOLOW NEW ORLEANS BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS PENELOPE J THORNTON TEMPLE HILLS MD FINED 50000 BARRED AND ORDERED TO PAY 5799 IN RESTITUTION CARL A TORELLI FAYETTEVILLE ARK FINED 100000 BARRED AND REQUIRED TO PAY 80000 IN RESTITUTION WITHOUT ADMITTING OR DENYING CHARGES HE IMPROPERLY ORDERED THE FUNDS TO BE DISBURSED TO HIMELF RICHARD A TORTI LITTLE ROCK ARK FINED 10000 AND SUSPENDED AS OWNER OR PRINCIPAL STOCKHOLDER OF ANY NASD MEMBER FIRM FOR TWO YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS MICHAEL C WOLOSHIN NEW YORK FINED 170850 ORDERED TO PAY 204150 IN RESTITUTION AND SUSPENDED FOR FOUR YEARS WITHOUT ADMITTING OR DENYING CHARGES OF CONCEALING OWNERSHIP IN CERTAIN SECURITIES CHARGING FRAUDULENTLY EXCESSIVE MARKUPS AND ENGAGING IN UNAUTHORIZED TRADING 9403210125 940321 WAXING DRAMATIC JANITORS' UNION USES PRESSURE AND THEATRICS TO EXPAND ITS RANKS TARGETS ARE BIG COMPANIES USING NONUNION FIRMS TO CLEAN THEIR BUILDINGS A BETTER SHINE FOR APPLE BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THEY OBVIOUSLY WEREN'T PART OF THE OLD EBBITT GRILL'S USUAL SUITANDTIE POWERDINING CROWD THEY TRAILED INTO THE FAMED EATERY ACROSS FROM THE WHITE HOUSE IN A NERVOUS LINE THEY WORE BRIGHT RED TSHIRTS DECORATED WITH CLENCHED FISTS HOLDING UPRAISED BROOMS AND THEIR POCKETS BULGED MYSTERIOUSLY THEY ORDERED COFFEE AND SODAS LATER WALKING OUT OF THE RESTAURANT THEIR LEADER GAVE A SIGNAL AND THEY SUDDENLY DREW COKE CANS FILLED WITH BALL BEARINGS WHICH THEY SHOOK VIOLENTLY SETTING OFF A DEAFENING CLATTER JUSTICE THEY YELLED JUSTICE FOR JANITORS STUNNED DINERS STARED A FURIOUS HOSTESS SPRINTED TOWARD THE GROUP WE HAVE A BUSINESS TO RUN SHE SPUTTERED A SECURITY GUARD THREATENED ARRESTS THE GROUP TUMBLED OUT ONTO THE SIDEWALK AND BELTED OUT ANOTHER CHORUS JUSTICE FOR JANITORS THE OLD EBBITT GRILL HAD JUST GOT A TASTE OF A NEW THRUST IN AMERICAN LABOR TACTICS ALTHOUGH THE RESTAURANT DOESN'T EMPLOY ANY JANITORS IT IS A TENANT IN A BUILDING CLEANED BY US SERVICE INDUSTRIES INC A NONUNION JANITORIAL COMPANY AND WITH THIS ODD DINNERTIME PERFORMANCE LAST FALL AND OTHER SIMILAR STUNTS THE SERVICE EMPLOYEES INTERNATIONAL UNION IS TRYING TO HARASS USSI INTO GOING UNION AT A TIME WHEN TRADITIONAL US LABOR UNIONS' INFLUENCE CONTINUES TO FADE THE DECIDEDLY UNCONVENTIONAL SEIU IS FLOURISHING THANKS LARGELY TO A COMBINATION OF ZANY OBNOXIOUS AND OCCASIONALLY ILLEGAL TECHNIQUES THAT SEEM BORN MORE OF THE BURLESQUE HALL THAN THE UNION HALL INSTEAD OF DIRECTLY TARGETING EMPLOYERS WITH STRIKES OR BOYCOTTS THE SEIU GOES AFTER THE EMPLOYERS' EMPLOYERS MAINLY COMMERCIAL LANDLORDS AND THEIR TENANTS THE BASIC IDEA TO SHAME PESTER AND PUSH TENANTS AND LANDLORDS INTO FORCING THEIR JANITORIAL CONTRACTORS TO UNIONIZE SO FAR THE SEIU HAS BEEN CLEANING UP WHILE MOST UNIONS HAVE LOST MEMBERS STEADILY SEIU HAS ADDED 30000 JANITORS SINCE 1986 WHEN IT BEGAN A CAMPAIGN TO REVITALIZE ITS MORIBUND JANITORS DIVISION THE DIVISION NOW HAS 200000 MEMBERS A FIFTH OF US CUSTODIANS THE UNION SAYS ITS TACTICS HAVE PROVED SO EFFECTIVE IN SILICON VALLEY THAT IT IS LAUNCHING AN EFFORT WITH THE TEAMSTERS AND THE HOTEL AND RESTAURANT EMPLOYEES UNION TO HUMILIATE OTHER CONTRACTORS INTO ORGANIZING THE WORKERS WHO SERVE FOOD AND TRIM FLOWERS AT HIGHTECH CONCERNS IT'S SOME OF THE MOST INNOVATIVE AND SUCCESSFUL ORGANIZING THAT'S BEEN DONE BY ANY UNION SAYS ANDY STERN ASSISTANT TO THE PRESIDENT FOR ORGANIZING AT SEIU ALLISON PORTER A RECRUITING DIRECTOR AT THE AFLCIO CALLS IT AN INCREDIBLE SUCCESS ADDING THAT IT'S CERTAINLY WORTH TRYING IN OTHER INDUSTRIES EVEN THE US DEPARTMENT OF LABOR HAS TAKEN A PAGE FROM THE JUSTICE FOR JANITORS' PLAYBOOK BY GOING STRAIGHT TO HIGHTECH COMPANIES IN SILICON VALLEY AND THREATENING UNDER THE HOT GOODS PROVISION OF THE FAIR LABOR STANDARDS ACT TO SEIZE THEIR PRODUCTS IF THEIR CUSTODIAL CONTRACTORS DON'T PAY LEGAL WAGES TARGETS OF SEIU'S JUSTICE FOR JANITORS CAMPAIGN HAVE FILED DOZENS OF COMPLAINTS WITH THE NATIONAL LABOR RELATIONS BOARD AND VARIOUS COURTS ACCUSING THE UNION OF LABORLAW VIOLATIONS IN SOME CASES COURTS OR THE NLRB HAVE RULED THAT THE UNION HAS INDEED BROKEN THE LAW TO DATE THE UNION THROUGH APPEALS OR SETTLEMENTS HAS SIDESTEPPED ANY SIGNIFICANT FINES OR PENALTIES BUT IT HAS PILED UP MANY ENEMIES I DON'T COTTON TO BLACKMAIL GROWLED GEORGE VALLEN OWNER OF ADVANCE BUILDING MAINTENANCE IN LOS ANGELES A PRIME TARGET OF SEIU IN AN INTERVIEW LAST SUMMER I'LL FIGHT AS LONG AS I CAN THE SEIU AND ITS JUSTICE FOR JANITORS CAMPAIGNERS SEEM HAPPY TO OBLIGE CONSIDER LAST SUMMER'S DRIVE AGAINST SAN JOSEBASED SERVICE BY MEDALLION INC A JANITORIAL CONTRACTOR TO SEVERAL SILICON VALLEY STARS SUCH AS HUGE DATABASE MAKER ORACLE CORP TYPICALLY THE UNION CONCENTRATED ITS FIRE NOT ON SERVICE BY MEDALLION BUT ON ORACLE AND ITS LANDLORD DEVELOPER WILLIAM WILSON & ASSOCIATES THE OPENING SALVO WAS AN AMPHIBIOUS ASSAULT DURING A PICNIC MR WILSON THREW FOR THE COMPANY AT ORACLE HEADQUARTERS IN REDWOOD CITY CALIF THREE UNION ORGANIZERS IN SAILOR SUITS CLAMBERED ABOARD A RICKETY SKIFF HOISTED A FLAG BEARING THE INSIGNIA SS JUSTICE AND SET SAIL ACROSS A LAKE IN FRONT OF ORACLE'S OFFICES THE SAILORS MADE IT TO SHORE WHERE A SCUFFLE BROKE OUT WITH SECURITY GUARDS AS SURPRISED ORACLE EMPLOYEES LOOKED ON JUSTICE FOR JANITORS ALSO INFILTRATED ORACLE'S INTERNAL ELECTRONICMAIL SYSTEM IMPLORING WORKERS TO SEND MESSAGES OF PROTEST TO TOP MANAGEMENT SOME DID ONE TOLD THE COMPANY THAT RATHER THAN SPEND MONEY ON EMPLOYEE PICNICS IT SHOULD PAY JANITORS BETTER THE DEBATE EVEN SPREAD TO OUTSIDE COMPUTER BULLETIN BOARDS ONE PROFESSOR FROM BUFFALO WROTE ORACLE ARE VERY LOWPAID JANITORS SO VERY THREATENING TO YOUR CORPORATION'S SURVIVAL WHILE ORACLE TOOK THE BRUNT OF THE UNION'S ASSAULT ORGANIZERS ALSO WERE QUIETLY COLLECTING GRIEVANCES FROM JANITORS AND SENDING THEM TO THE LABOR DEPARTMENT LAST JUNE THE DEPARTMENT FOUND THAT MEDALLION HAD STIFFED 199 EMPLOYEES FOR 7827389 OVER 18 MONTHS MEDALLION HAD BEEN INVESTIGATED IN 1990 AND WAS DISCOVERED TO HAVE OWED 109 EMPLOYEES 3490946 IN UNPAID OVERTIME THE DEPARTMENT FINED MEDALLION ALMOST 50000 IN THE MOST RECENT CASE FOR BEING A REPEAT OFFENDER AND ORDERED IT TO PAY BACK WAGES ROLAND PHILLIPS THE COMPANY'S PRESIDENT CONCEDES THAT SOME OF HIS JANITORS DIDN'T GET FULL PAY BUT BLAMES RECORDKEEPING SNAFUS HE SAYS UNION SHOPS ROUTINELY BREAK THE SAME LAWS HIS COMPANY WAS FOUND TO HAVE VIOLATED BUT ESCAPE PUNISHMENT BECAUSE LABOR TIPSTERS DON'T BLOW THE WHISTLE ON UNIONIZED OUTFITS IN THE ORACLE CASE AFTER TWO MONTHS OF UNION HEAT ON THE DATABASE MAKER AND ON MR WILSON MEDALLION GAVE IN SETTLING WITH THE UNION WAGES WENT FROM AS LITTLE AS 5 AN HOUR WITH NO BENEFITS TO 6 AN HOUR WITH BENEFITS ALTHOUGH THE INCREASE IS PHASED IN OVER TWO YEARS IT WASN'T WORTH THE EFFORT TO FIGHT THEM ANYMORE MR PHILLIPS SAYS HE SAYS HE FEARED LOSING THE ORACLE CONTRACT HALF HIS COMPANY'S BUSINESS AND THOUGH ORACLE AND MR WILSON DENY THAT JUSTICE FOR JANITORS' ANTICS LED THEM TO PRESSURE MEDALLION TO SETTLE MR PHILLIPS VIEWS IT OTHERWISE THE COMPANIES DIDN'T WANT TO BE INVOLVED HE SAYS THEY WILL QUITE CONSERVATIVELY AND HONESTLY TELL YOU TO CLEAN UP THE MESS BECAUSE THEY DON'T WANT THE LIMELIGHT JOHN SCULLEY WAS THE RELUCTANT STAR OF ONE OF THE SEIU'S MOST SUCCESSFUL PRODUCTIONS THE ERSTWHILE COMPUTER VISIONARY AND APPLE COMPUTER INC CHIEFTAIN FOUND HIMSELF TRAILED VIRTUALLY EVERYWHERE BY ORGANIZERS IN THE LATE 1980S THE UNION'S REAL QUARRY WAS SHINE BUILDING MAINTENANCE INC WHICH CLEANS APPLE'S OFFICES BUT ORGANIZERS SERENADED MR SCULLEY AT HIS HOME BERATED HIM WHEN HE SHOWED UP AT THE SYMPHONY AND CONFRONTED HIM AT THE COMPANY'S MACWORLD EXHIBITIONS ONE ORGANIZER CRASHED APPLE'S SHAREHOLDER MEETING IN 1991 SHOUTING OUT QUESTIONS ABOUT THE COMPANY'S TREATMENT OF JANITORS FLUMMOXED MR SCULLEY COULD ONLY STAMMER THIS IS A DISPUTE THAT HAS NOTHING TO DO WITH APPLE THE UNION PICKETED COMPUTER STORES IN TWO DOZEN US CITIES CALLED FOR AN INTERNATIONAL BOYCOTT AND TRIED TO PERSUADE SCHOOLS A MARKET APPLE CHERISHES TO BAN ITS MACHINES FIVE JANITORS FASTED FOR SIX DAYS ON THE STEPS OF APPLE HEADQUARTERS IN CUPERTINO CALIF THE ORGANIZERS DID EVERYTHING TO MAKE IT APPEAR THAT THE PROBLEM WAS WITH APPLE NOT THE JANITORIAL SERVICE COMPANY MR SCULLEY RECALLS HE SAYS APPLE NEVER LEANED ON SHINE BUT IN 1992 SHINE WENT UNION JOHN KRAUSE SHINE'S GENERAL MANAGER CONCEDES THAT JUSTICE FOR JANITORS' TACTICS COST HIM CLIENTS AND WORE HIM DOWN WE WEREN'T THE VAMPIRES THEY PORTRAYED US AS HE SAYS BUT WE DIDN'T BELIEVE THEY WERE EVER GOING TO GO AWAY FOR SOME YEARS IN FACT THE SEIU JANITORS DIVISION DID LOOK AS IF IT MIGHT FADE AWAY IT HAS BEEN ORGANIZING JANITORS SINCE THE TURN OF THE CENTURY AND BY WORLD WAR II CLAIMED A HOLD ON MOST MAJOR CITIES BUT BY THE LATE 1970S IT WAS ON THE SKIDS ITS RANKS THINNED AS COMPANIES SWITCHED TO CLEANING CONTRACTORS AND FULLTIME JOBS MUTATED INTO PARTTIME ONES WAGES FELL AND BENEFITS DISAPPEARED WHEN BUILDING OWNERS IN PITTSBURGH DEMANDED THAT JANITORS TAKE A PAY CUT IN 1985 THE UNION DUG IN ITS HEELS AND WON THE FIRST VICTORY IN WHAT BECAME THE JUSTICE CAMPAIGN AROUND THAT TIME STEPHEN LERNER WAS NAMED DIRECTOR OF ORGANIZING FOR THE BUILDING SERVICES DIVISION CHARGED WITH REVIVING IT HE BRAINSTORMED WITH OTHER ORGANIZERS FOR THE MOST THEATRICAL TACTICS IT ISN'T CHEAP ORGANIZING EATS UP 25 OF THE SEIU'S BUDGET VS 5 AT MOST UNIONS TENACITY HAS BEEN A HALLMARK OF JUSTICE FOR JANITORS SIX YEARS AGO THE UNION EMBARKED ON A CAMPAIGN TO ORGANIZE THE 5000 PRIVATE OFFICE CLEANERS IN WASHINGTON DC AT THE TIME FEWER THAN 1 OF THEM WERE IN UNIONS ORGANIZERS PERIODICALLY CLOGGED K STREET TRAFFIC WITH POTBANGING MARCHERS AND CHAINED THEMSELVES TO DOORS AT OFFICE TOWERS CLEANED BY NONUNION JANITORS THEY DONNED SANTA CLAUS SUITS EVERY CHRISTMAS SEASON ASSEMBLED IN FRONT OF NONUNION BUILDINGS AND BELTED OUT RENDITIONS OF CUSTOMIZED CAROLS SUCH AS THE TWELVE DAYS OF INJUSTICE LAST FALL THE UNION SIGNED A DEAL WITH SEVERAL LARGE WASHINGTONAREA CLEANING CONTRACTORS ADDING 1000 JANITORS TO SEIU ROLLS AND LIFTING ITS REPRESENTATION IN THE DISTRICT TO 30 AMONG THE HOLDOUTS IS UNITED SERVICES WHOSE 1500 NONUNION JANITORS CLEAN THE BUILDING HOUSING THE OLD EBBITT GRILL AND ABOUT 100 OTHERS IF YOU SIGN A UNION CONTRACT WITH A GUN TO YOUR HEAD HOW DO YOU NEGOTIATE ASKS JAMES MATTHEWS PRESIDENT OF UNITED SERVICES JANITORS HOLD THE OPPOSITE VIEW WITHOUT THE UNION THEY ARE THE ONES WITH NO RECOURSE GUILLERMO BARROSO A 37YEAROLD JANITOR WHO CLEANS BUILDINGS AT HEWLETTPACKARD CO SAYS THAT IN THE 15 MONTHS HE HAS WORKED FOR A UNION CONTRACTOR HIS HOURLY WAGE HAS JUMPED TO 650 FROM 550 HE ALSO NOW GETS MEDICAL AND DENTAL BENEFITS HE SENDS MOST OF THE EXTRA CASH TO HIS FAMILY IN MEXICO ABOUT 500 TO 600 EVERY COUPLE OF MONTHS 200 MORE THAN BEFORE HE JOINED THE UNION JUST AS IMPORTANT HE SAYS IS THE SENSE THAT HE CAN SPEAK UP IN THE WORKPLACE WITHOUT FEAR OF LOSING HIS JOB BEFORE JOINING THE UNION HE SAYS IF WE HAD EVEN OPENED OUR MOUTHS WE WOULD HAVE BEEN OUT IN THE STREET AS IT IS JANITORS SPEND CONSIDERABLE TIME IN THE STREET ANYWAY PROTESTING IN LOS ANGELES ONE OF THEIR CHIEF TARGETS FOR THREE YEARS HAS BEEN MR VALLEN AMONG MR VALLEN'S BIGGEST CLIENTS IS TOYOTA MOTOR CORP WHICH HIRED HIS ADVANCED BUILDING MAINTENANCE TO CLEAN TOYOTA MOTOR'S US HEADQUARTERS IN NEARBY TORRANCE ONE EVENING LAST YEAR YUKIYASU TOGO THEN HEAD OF TOYOTA'S US OPERATIONS DISCOVERED A DOZEN UNION JANITORS AND THEIR CHILDREN CAMPED OUTSIDE THE ELECTRIC GATE AT MR TOGO'S PACIFIC PALISADES HOME THEY CHANTED JANITORS DON'T LOVE WHAT TOYOTA DOES FOR THEM A TAKEOFF ON THE CAR MAKER'S SLOGAN THE UNION TURNED UP THE HEAT BY MAKING TOYOTA AND ANOTHER OF MR VALLEN'S BIG CUSTOMERS MATTEL INC A FOCUS OF LAST YEAR'S ANNUAL JUSTICE FOR JANITORS DAY A NATIONWIDE GUERRILLATHEATER ASSAULT IN 30 US CITIES EVERY JUNE 15 IN NEW YORK ORGANIZERS HANDED OUT FLIERS IN FRONT OF FAO SCHWARZ TO BADGER THE TOY STORE FOR DOING BUSINESS WITH MATTEL AT MATTEL HEADQUARTERS IN EL SEGUNDO CALIF JANITORS PERFORMED A SKIT IN WHICH THEIR CAPED SUPERHERO MOP MAN WOOED BARBIE AWAY FROM KEN BY TELLING HER OF THE SHABBY TREATMENT CUSTODIANS HAVE TO ENDURE SUCH TACTICS SOMETIMES BACKFIRE THE JANITORS' CAMPAIGN FLAMED OUT IN ATLANTA WHEN IT TOOK ON MEGADEVELOPER JOHN PORTMAN DURING THE 1988 DEMOCRATIC CONVENTION SEIU CALLED FOR AN INTERNATIONAL BOYCOTT OF PORTMAN PROPERTIES AND PICKETED DOZENS OF HIS ATLANTA HOLDINGS GOOD MORNING AMERICA CANCELED A FEED FROM ONE OF MR PORTMAN'S HOTELS RATHER THAN CROSS PICKET LINES THE UNION PASSED OUT BARS OF SOAPS TO GUESTS AT PORTMAN HOTELS WASH UP AMERICA CLEAN YOUR HANDS OF JOHN PORTMAN READ THE LABELS BUT MR PORTMAN SUED FOR 435000 IN DAMAGES IN FEDERAL COURT ALLEGING VIOLATIONS OF THE NATIONAL LABOR RELATIONS ACT WHICH PROHIBITS SECONDARY BOYCOTTS PICKETING OF COMPANIES NOT DIRECTLY INVOLVED IN A LABOR DISPUTE NEVERTHELESS THE UNION OFTEN GETS AROUND THE RESTRICTION BY FINETUNING ITS ACTIONS FOR EXAMPLE IT SOMETIMES DISTRIBUTES FLIERS INSTEAD OF PICKETING OR HAS PROTESTERS STAND IN A PUBLIC PARK NEAR THE TARGETED BUILDING RATHER THAN ON THE COMPANY'S SIDEWALK IN 1990 THE SEIU SETTLED WITH MR PORTMAN AND CALLED OFF THE BOYCOTT EVENTUALLY THE UNION ABANDONED ITS EFFORT IN ATLANTA UNION LAWYER LARRY ENGELSTEIN SAYS THE UNION HASN'T PAID ANY DAMAGES AS A RESULT OF THE SUIT MR PORTMAN WON'T COMMENT THAT DEFEAT SEEMS TO HAVE BEEN ONLY A TEMPORARY SETBACK HOWEVER IN LOS ANGELES THE UNION CLAIMS ITS THREEYEAR CAMPAIGN HAS LIFTED UNION REPRESENTATION TO NEARLY 90 OF THE JANITORS IN THE DOWNTOWN AREA FROM 30 IN THE NEARBY HIGHRISE MECCA OF CENTURY CITY UNION REPRESENTATION IS CLOSE TO 100 WAGES IN THE LOS ANGELES AREA HAVE INCREASED TO ABOUT 625 AN HOUR PLUS INSURANCE AND PENSIONS FROM 425 AN HOUR WITH NO BENEFITS IN SILICON VALLEY THE UNION CLAIMS ITS MEMBERSHIP IS UP TO 65 DOUBLE WHERE IT WAS WHEN ITS CAMPAIGN BEGAN THREE YEARS AGO IN DENVER PITTSBURGH AND A DOZEN OTHER BATTLEGROUNDS THE UNION CLAIMS TO HAVE DOUBLED OR TRIPLED JANITOR REPRESENTATION AND A BIG VICTORY CAME RECENTLY WHEN MATTEL AWARDED ITS CONTRACT TO A UNION OUTFIT WE WERE TIRED OF THE NUISANCE THE FALSE IMPRESSION THEY CREATED ABOUT MATTEL NOT BEING A COMPANY THAT CARES ABOUT ITS WORKERS SAYS DONNA GIBBS A MATTEL SPOKESWOMAN WE WANTED TO PUT IT BEHIND US SO WHO IS MATTEL'S NEW UNIONIZED CLEANING COMPANY NONE OTHER THAN MR VALLEN'S ADVANCED IN OCTOBER FACING UNION LAWSUITS OVER HIS ALLEGED FIRING OF STRIKING WORKERS AND HIS WAGE PRACTICES AS WELL AS A CONTINUING ONSLAUGHT OF STUNT PROTESTS MR VALLEN THREW IN THE TOWEL ADVANCED IS NOW AN SEIU SHOP PEOPLE WERE AFRAID TO HIRE US BECAUSE AS SOON AS THEY'D SIGN THE CONTRACT THEY'D HAVE THE UNION AT THEIR DOOR GRUMBLES MR VALLEN HE WAS LOSING CUSTOMERS AND FIGHTING SEIU'S JUSTICE FOR JANITORS ORGANIZERS LEFT HIM NEARLY BROKE HE SAYS THERE WAS NO WAY OF MAKING THEM GO AWAY 9403210124 940321 ARE YOU CASHPOOR BUT PROBLEMRICH CALL ON JOHN HUDSON HE OFFERS LAWYERS ON CREDIT IF THAT'S NOT THE ANSWER MAYBE FINANCE A FACE LIFT BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO JUST WHAT THE WORLD DOESN'T SEEM TO NEED A WAY TO HELP MORE PEOPLE HIRE MORE LAWYERS BUT AN ENTREPRENEUR IN THIS CITY ARGUING THAT MANY POOR AND MIDDLECLASS PEOPLE CAN'T AFFORD TO HIRE PRIVATE ATTORNEYS HAS DEVELOPED A FINANCING SCHEME TO LET CLIENTS PAY ON THE INSTALLMENT PLAN THE SERVICE IS THE BRAINCHILD OF JOHN LEE HUDSON 41 YEARS OLD WHO GAINED LOCAL NOTORIETY FOR HELPING PATIENTS FINANCE PLASTIC SURGERY AND FUNERALS BEFORE THAT MR HUDSON MADE AND SOLD DOLLS OF OLIVER NORTH AND MIKHAIL GORBACHEV LATELY HOWEVER THE FOUNDER OF HUDSON & HUDSON WHICH OFFERS THE VARIOUS FINANCING SERVICES HAS BEEN HAWKING HIS NEW PLAN IN LETTERS TO CALIFORNIA LAWYERS IN WORKS LIKE THIS LAW FIRMS PAY A ONETIME FEE OF 500 375 IN A LIMITED OFFER TO REGISTER AN ATTORNEY IN THE SYSTEM PLUS 5 OF THE VALUE OF EACH AMOUNT FINANCED BY A CLIENT MR HUDSON'S FIRM PAYS LAWYERS UPFRONT FOR THEIR SERVICES ON A CASE CLIENTS SEEKING LAWYERS MUST FIRST PASS AN EVALUATION FOR CREDITWORTHINESS BY MR HUDSON'S FIRM IF THEY PASS THEY WILL PAY INTEREST RANGING FROM 18 TO 22 FOR AN UNSECURED LOAN OR A RATE AS LOW AS 89 FOR A LOAN WITH ACCEPTABLE COLLATERAL A CLIENT MAY TAKE UP TO FIVE YEARS TO PAY OFF A BILL WITH MINIMUM MONTHLY PAYMENTS OF 25 OF THE OUTSTANDING BALANCE FOR EXAMPLE FOR A LEGAL BILL OF 5000 MR HUDSON ESTIMATES THAT PAYMENTS WOULD BE AROUND 125 A MONTH OF COURSE POTENTIAL PLAINTIFFS ALSO HAVE THE OPTION OF SEEKING A LAWYER WHO WILL WORK ON A CONTINGENCY BASIS FOR A PERCENTAGE OF POTENTIAL DAMAGES WON SOME LITIGANTS ALSO USE CREDIT CARDS BUT RULES ON CREDIT CARDS GENERALLY DON'T ALLOW PAYMENTS UNTIL SERVICES ARE RENDERED MR HUDSON SAYS AND SOME CLIENTS HAVE BEEN KNOWN TO REPUDIATE LAWYER BILLS AFTER THE FACT MR HUDSON DISPUTES THE IDEA THAT HIS SERVICE WILL INSPIRE AN INCREASE IN LITIGATION OR ENTICE PEOPLE TO SPEND MORE MONEY THAN THEY SHOULD ON LAWYERS RATHER HE PREDICTS IT WILL SAVE TAXPAYERS MONEY BY CUTTING DOWN ON USE OF PUBLIC DEFENDERS THAT HAS BEEN THE EXPERIENCE OF ONE EARLY PARTICIPANT LOS ANGELES CRIMINAL ATTORNEY CARLO SPIGA HE SAYS THAT SOME POTENTIAL CLIENTS DIDN'T QUALIFY FOR THE SERVICE BUT OTHERS WERE ABLE TO AVOID USING PUBLIC DEFENDERS BECAUSE OF IT AND ROBERT GNAIZDA A SENIOR PARTNER AT PUBLIC ADVOCATES INC A SAN FRANCISCO CONTINGENCYFEE FIRM ARGUES THAT THE SERVICE IS TIMELY BECAUSE OF A LIKELY EXPLOSION OF CRIMINAL TRIALS DEFENDANTS IN CALIFORNIA ARE LIKELY TO TAKE MORE CASES TO COURT HE SAID RATHER THAN ACCEPT PLEA BARGAINS BECAUSE OF THE POTENTIAL FOR FUTURE LIFE SENTENCES UNDER THE STATE'S NEW THREE STRIKES YOU'RE OUT LEGISLATION I THINK IT'S A VERY VERY GOOD IDEA WHOSE TIME HAS COME ADDS MICHAEL STEPANIAN ANOTHER SAN FRANCISCO CRIMINAL ATTORNEY WHO HAS BEEN TALKING WITH MR HUDSON I'M GOING TO GIVE THEM A TRY 9403210123 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT ALTERED STATES THE WAY THINGS WORK FOR THE PEOPLE WHO TOIL UNDER THE HOOD THE MULTIMEDIA REVOLUTION POSES ALL SORTS OF TECHNOLOGICAL CHALLENGES BY DON CLARK IT'S HARD ENOUGH TO FIGURE OUT WHAT MULTIMEDIA IS IMAGINE FIGURING OUT HOW IT WILL WORK THAT'S THE CHALLENGE COMPUTER PHONE AND CABLE COMPANIES HAVE TAKEN ON TO DELIVER A WORLD OF MOVIESONDEMAND VIRTUAL SHOPPING AND INFORMATION AT VIEWERS' COMMAND ON EVERYTHING FROM THE WEATHER TO THE BACKGROUND OF SOAPOPERA CHARACTERS THEY MUST RESOLVE A SPECTRUM OF BATTLES OVER TECHNOLOGICAL STANDARDS AND THEY MUST FORGE ADVANCES IN FOUR BROAD AREAS CREATING ENCODING DISTRIBUTING AND PLAYING MULTIMEDIA WORKS COMPUTERGAME MAKERS AND BIG HOLLYWOOD DIRECTORS HAVE THE TALENT AND RESOURCES TO DEVELOP INTERACTIVE WORKS BUT SOFTWARE COMPANIES ARE DEVELOPING TOOLS AND TEMPLATES THAT WILL MAKE EVERYONE A MULTIMEDIA PRODUCER ENABLING SAY A SMALL RETAILER TO CREATE AN ADVERTISEMENT THAT DISTRIBUTES ELECTRONIC COUPONS OVER THE TV TOOLS REFER TO PROGRAMS THAT TRANSLATE IDEAS AND COMMANDS INTO THE ONES AND ZEROS THAT COMPUTERS UNDERSTAND THEY RANGE FROM PROGRAMMING LANGUAGES THAT USE ARCANE TEXT COMMANDS TO NEWER SIMPLER TOOLS THAT CAN CONSTRUCT PROGRAMS TINKERTOY FASHION BY COMBINING READYMADE SYMBOLS OR IMAGES AS THEY BECOME EASIER TO USE TOOLS WILL PUT MORE POWER IN THE HANDS OF ARTISTS AND ORDINARY PEOPLE WE HAVE A RESPONSIBILITY TO GET OUT OF THIS NERDY GHETTO SAYS FABRICE FLORIN AN EXECUTIVE PRODUCER/DESIGNER IN APPLE COMPUTER INC'S DISCOVERY STUDIO ITS MULTIMEDIA DEVELOPMENT GROUP IN SAN FRANCISCO UNTIL WE DO THAT WE ARE GOING NOWHERE FAST ONE TYPE OF TOOL FOR NONTECHIES WILL HELP PEOPLE SEND FRIENDS AND RELATIVES VIDEO LETTERS CARD SHOPS ARE LIKELY TO SET UP KIOSKS THAT WILL LET CUSTOMERS RECORD A MESSAGE SPICE IT UP WITH SELECTIONS FROM A LIBRARY OF SIMPLE GRAPHIC EFFECTS AND SEND IT TO THE ELECTRONIC MAILBOX OF THEIR CHOICE SAYS GREGORY RIKER DIRECTOR OF MICROSOFT CORP'S FUTUREHOMETECHNOLOGY UNIT WHICH RECENTLY DEMONSTRATED SEVERAL SUCH GREETINGS ANOTHER SOFTWARE COMPANY ESHOP INC OF SAN MATEO CALIF IS DEVELOPING A VIRTUALSTORE PROGRAM WHICH WILL ALLOW RETAILERS LARGE AND SMALL TO EASILY CREATE VIDEO TOURS OF THEIR STORES THE TOUR PACKAGES WILL BE SENT TO CUSTOMERS ONLINE ON COMPACT DISKS OR ON NEWFANGLED SMALL CARDS THAT SLIDE INTO COMPUTERS SOME TOOLS WON'T CARE WHAT TYPE OF MACHINE YOU PLAY THEM ON KALEIDA LABS INC A JOINT VENTURE OF APPLE AND INTERNATIONAL BUSINESS MACHINES CORP IN MOUNTAIN VIEW CALIF IS STRIVING FOR JUST THAT WITH A NEW PROGRAMMING LANGUAGE CALLED SCRIPTX IT USES A TECHNIQUE CALLED OBJECTORIENTED PROGRAMMING BASED ON BUILDING BLOCKS OF REUSABLE PARTS IN A DEMONSTRATION KALEIDA PROGRAMMERS PICK UP AN IMAGE OF A SWIMMING FISH FROM AN APPLE MACINTOSH PROGRAM AND PASTE IT STILL SWIMMING INTO A WINDOWS PROGRAM ON AN IBMCOMPATIBLE PC BUT CREATING SUCH BROADLY APPLICABLE TOOLS IS A MINDBOGGLING TASK SCRIPTX ORIGINALLY DUE OUT IN THE SECOND QUARTER OF 1993 NOW IS EXPECTED TO HIT THE MARKET LATE THIS YEAR TO EXPLOIT COMPUTERIZED SIGHTS AND SOUNDS IT HELPS TO SCRAMBLE AND SQUEEZE CABLE COMPANIES ALREADY SCRAMBLE PROGRAMMING TO FOIL PIRATES FOR PC USERS COMPRESSION SOFTWARE YIELDS MORE STORAGE SPACE ON HARD DRIVES AND SHRINKS FILES FOR QUICKER PHONE TRANSMISSION THESE PROCESSES BECOME MUCH MORE CRUCIAL AS TV SIGNALS ARE CONVERTED TO DIGITAL FORM THE KEY STARTING POINT FOR INTERACTIVE PROGRAMMING A TYPICAL CABLE SYSTEM THAT NOW HAS ENOUGH CAPACITY FOR 54 CHANNELS COULD CARRY ONLY NINE UNCOMPRESSED DIGITAL CHANNELS WITH COMPRESSION TECHNOLOGY HOWEVER CABLE COMPANIES EXPECT TO SQUEEZE FOUR TO 10 DIGITAL CHANNELS IN THE SPACE OF ONE CURRENT ANALOG CHANNEL FROZEN ORANGE JUICE IS A POPULAR ANALOGY BY TAKING THE WATER OUT OF THE JUICE IT CAN BE STORED AND SHIPPED MORE EASILY DIGITAL COMPRESSION SCHEMES TAKE OUT EXTRANEOUS INFORMATION BEFORE SENDING AN IMAGE THE RECIPIENT HAS A DECODING DEVICE THAT DECOMPRESSES THE SIGNAL MUCH AS ONE ADDS WATER TO THE FROZEN JUICE THERE'S PLENTY OF EXTRA INFORMATION FOR EVERY SECOND OF VIDEO 30 STILL PICTURES FLOW BY TO CONVEY A SENSATION OF MOVEMENT FOR A STATIONARY OBJECT THOSE 30 FRAMES COULD THEORETICALLY BE BOILED DOWN TO ONE ON THE OTHER HAND MORE FRAMES WOULD BE NEEDED TO SHOW THE ACTION IN A BASKETBALL GAME COMPRESSION SCHEMES USE SPECIAL CIRCUITRY TO ANALYZE MOTION IN EACH FRAME AND PREDICT WHERE THE OBJECTS WILL APPEAR IN THE NEXT SAYS CRAIG TANNER VICE PRESIDENT OF ADVANCED TELEVISION PROJECTS AT THE INDUSTRY THINK TANK CABLELABS LOUISVILLE COLO BY SENDING SHORTHAND CODES THAT INDICATE THE MOTION PLUS SOME ERRORCORRECTING SIGNALS COMPRESSION SYSTEMS CAN SEND FEWER BITS AND STILL DELIVER MOVING PICTURES ONE COMPRESSION TECHNOLOGY DEVELOPED BY A 300MEMBER INTERNATIONAL ORGANIZATION CALLED THE MOVING PICTURE EXPERTS GROUP ALREADY HAS A WIDE FOLLOWING ITS MPEG1 TECHNOLOGY SQUEEZES DIGITAL VIDEO SIGNALS DOWN TO 15 MILLION BITS OF DATA A SECOND FROM 100 MILLION BITS OR 10000 TIMES THE VOLUME OF A HIGHEND PC MODEM MANY CDROM PROGRAMS STORE VIDEO IMAGES USING THE MPEG1 SCHEME AND BELL ATLANTIC CORP PLANS TO USE THE TECHNOLOGY TO SHIP MOVIESONDEMAND TO HOMES STARTING IN NORTHERN VIRGINIA THIS SPRING MPEG1 IMAGES ARE ABOUT AS GOOD AS THOSE FROM VHS VCRS THAT SATISFIES MANY CONSUMERS BUT IS FAR BELOW THE QUALITY OF LASER DISKS OR HIGHDEFINITION TV SO COMPANIES HOPE TO PRODUCE BETTER PICTURES USING COMPRESSION SCHEMES THAT TRANSFER THREE MILLION TO SEVEN MILLION BITS A SECOND A BATTLE LOOMS AT THE NEXT QUALITY LEVEL HOWEVER MPEG2 A HIGHERRESOLUTION STANDARD COMPATIBLE WITH MPEG1 PROGRAMMING HAS ALREADY BEEN SELECTED BY COMPANIES DEVELOPING THE US STANDARD FOR HDTV THAT MEANS CABLE COMPANIES THAT ADOPT MPEG2 WON'T HAVE TO OVERHAUL THEIR SYSTEMS WHEN HDTV COMES ALONG BUT CHICAGOBASED GENERAL INSTRUMENT CORP A LEADING SUPPLIER OF CABLETV DECODER BOXES HOPES TO TEMPT CABLE OPERATORS WITH AN INCOMPATIBLE TECHNOLOGY CALLED DIGICIPHER II ITS COMPRESSION QUALITY IS COMPARABLE TO MPEG2 AND IT ALSO SCRAMBLES SIGNALS TO PREVENT PIRACY AS THEY WRESTLE WITH VIDEO COMMUNICATIONS AND COMPUTER COMPANIES ALSO ARE GRAPPLING WITH SOUND MPEG HAS ITS OWN COMPRESSION STANDARD FOR DELIVERING TWOCHANNEL STEREO BUT A RIVAL SYSTEM FROM SAN FRANCISCO SOUND PIONEERS DOLBY LABORATORIES INC HAS BEEN SELECTED AS THE US HDTV STANDARD AND IS GAINING SUPPORT THE DOLBY TECHNOLOGY CALLED AC3 HAS FIVE CHANNELS FOR SURROUND SOUND IT WOULD ALLOW CABLE COMPANIES TO INSTALL TWOCHANNEL SYSTEMS NOW THAT WOULD WORK WITH FIVECHANNEL SIGNALS SENT LATER APART FROM THE COMPRESSION BATTLES SURROUNDING HOME TVS PC MAKERS ARE RUSHING TO TURN BUSINESS MACHINES INTO TWOWAY VIDEOCONFERENCING STATIONS THAT TAKES COMPRESSION TOO INTEL CORP THE KINGPIN IN MICROPROCESSOR CHIPS IS PROMOTING A COMPRESSION SCHEME CALLED INDEO WITH THE AID OF SPECIAL CIRCUIT BOARDS SOFTWARE CAMERAS AND A HEADSET TWO PC USERS CAN WORK ON THE SAME DOCUMENT AT ONCE WHILE TALKING AND WATCHING EACH OTHER ON A SMALL WINDOW OF THE PC SCREEN THE SYSTEM REQUIRES USE OF AN INTERIM ADVANCE OVER STANDARD TELEPHONE TRANSMISSION CALLED ISDN FOR INTEGRATED SERVICES DIGITAL NETWORK BUT INTEL MAY COLLIDE WITH BACKERS OF A PROPOSED INTERNATIONAL STANDARD CALLED H320 SAYS ELLIOT GOLD PRESIDENT OF TELESPAN PUBLISHING CORP A MARKETRESEARCH FIRM IN ALTADENA CALIF IN TAKING SIDES HARDWARE AND SOFTWARE COMPANIES MUST WEIGH WHICH TECHNOLOGY WILL HIT THE MARKET FIRST AGAINST WHICH MIGHT MAKE THE MOST MONEY OVER THE LONG RUN YOU HAVE TO LOOK AT THE GREED FACTOR MR GOLD SAYS THERE WILL BE NO STANDARD THAT COMES FROM THE VATICAN ONCE CREATED AND COMPRESSED MULTIMEDIA WARES HAVE TO REACH THEIR AUDIENCES ONE SAFE BET FOR DISTRIBUTION IS CDROM A SINGLE DISK HOLDS ENOUGH DATA TO PACK AN ENCYCLOPEDIA WITH ROOM TO SPARE PRICES OF CDROM PLAYERS HAVE PLUNGED AND THEY ARE BECOMING STANDARD EQUIPMENT ON MANY PCS THE DISKS COST LESS THAN 2 TO MAKE ABOUT ONETENTH THE COST OF A VIDEOGAME CARTRIDGE THAT'S AN IMPORTANT SELLING POINT FOR COMPANIES LIKE MULTIMEDIA UPSTART 3DO CO THAT HOPE THEIR FORMATS BECOME NEW STANDARDS FOR SYSTEMS HOOKED TO THE FAMILY TV BUT EVEN THE MOST ARDENT BACKERS OF DISKS EXPECT THEM TO BE AUGMENTED IF NOT REPLACED BY MULTIMEDIA SERVICES FLOWING OVER PHONE AND CABLE LINES IN THAT SCENARIO GAMES MOVIES MUSIC AND INFORMATION WILL BE DOLED OUT FROM REPOSITORIES CALLED SERVERS A TERM USED LOOSELY TO MEAN BOTH THE COMPUTER AND DATABASE THAT FILE AND RETRIEVE MULTIMEDIA INFORMATION THE OPPORTUNITY IN SERVERS HAS ATTRACTED MANY LEADING HARDWARE AND SOFTWARE COMPANIES IBM DIGITAL EQUIPMENT CORP HEWLETTPACKARD CO AND SILICON GRAPHICS INC HAVE ALL BEEN PICKED FOR MAJOR TRIALS OF THEIR VIDEOSERVER TECHNOLOGY BELL ATLANTIC IN JANUARY CHOSE SUPERCOMPUTER SERVER TECHNOLOGY FROM ORACLE CORP A DATABASE SOFTWARE GIANT IN REDWOOD CITY CALIF TO OFFER MOVIESONDEMAND MICROSOFT IS WORKING ON ITS OWN SOFTWARE CODENAMED TIGER WHICH IT SAYS CAN DISTRIBUTE MULTIMEDIA ON STANDARD PC HARDWARE A CORNER HARDWARE STORE COULD AFFORD A VIDEO SERVER FOR EXAMPLE OR A BIG COMPANY MIGHT ASSEMBLE LARGE SYSTEMS FROM SCORES OF PC CIRCUIT BOARDS SAYS NATHAN MYHRVOLD MICROSOFT'S SENIOR VICE PRESIDENT OF ADVANCED TECHNOLOGY WHILE SERVER STANDARDS ARE NONEXISTENT A CONSENSUS IS EMERGING OVER THE MOST VISIBLE SYMBOL OF THE MULTIMEDIA AGE THE COMMUNICATIONS PIPELINES THAT WILL DELIVER NEW SERVICES TO THE HOME THE OVERUSED METAPHOR OF A DATA SUPERHIGHWAY CONNOTES A VAST CONSTRUCTION PROJECT LAYING HIGHCAPACITY WIRE FROM CITY TO CITY AND HOUSE TO HOUSE ACTUALLY PHONE COMPANIES HAVE ALREADY INSTALLED MUCH OF THE LONGDISTANCE FIBEROPTIC CABLE NEEDED TO BOOST THEIR CAPACITY AND FIBEROPTIC CABLE NEEDS TO BE STRUNG ONLY TO EACH NEIGHBORHOOD NOT TO EACH HOUSE CHEAPER COAXIAL WIRES THE KIND ALREADY USED BY CABLE COMPANIES HAVE ENOUGH CAPACITY TO CARRY TWOWAY VIDEO ON THE FINAL LEG TO EACH HOME PACIFIC BELL PLANS A 16 BILLION SYSTEM UPGRADE TO DELIVER INTERACTIVE SERVICES THROUGHOUT CALIFORNIA THE PACIFIC TELESIS GROUP UNIT WILL RUN FIBER CABLES FROM A CENTRAL OFFICE TO NEIGHBORHOOD FEEDER DEVICES FROM THERE COAXIAL WIRES WILL MAKE THE FINAL LINK TO 480 HOMES EACH SOME PHONE COMPANIES AREN'T WAITING FOR COAXIAL CABLE BELL ATLANTIC PLANS TO SEND MOVIES TO THE HOME OVER STANDARD COPPER WIRES USING A TECHNOLOGY CALLED ADSL FOR ASYNCHRONOUS DATA SUBSCRIBER LINE BUT MANY INDUSTRY WATCHERS CONSIDER ADSL A TRANSITIONAL TECHNOLOGY IT OFFERS A MUCH SLOWER RETURN PATH FOR HOME USERS TO SEND DATA BACK THROUGH THE NETWORK AND IT REQUIRES AN EXPENSIVE SETTOP BOX IN EACH HOME CABLE COMPANIES HAVE DIFFERENT PROBLEMS THEY ALREADY SHOVE MASSIVE AMOUNTS OF CONVENTIONAL ANALOG PROGRAMMING THROUGH THEIR COAXIAL CABLE AND ARE STEADILY ADDING FIBEROPTIC BACKBONES TO CONNECT NEIGHBORHOODS AND TERRITORIES BUT THEIR SYSTEMS NEED AMPLIFIERS AND OTHER EQUIPMENT TO ALLOW TWOWAY COMMUNICATIONS PLUS SWITCHING SYSTEMS TO STEER SIGNALS AMONG ALL THE HOUSES OR BUSINESSES ON THEIR NETWORKS THE COST AND COMPLEXITY OF ADDING SWITCHED SERVICES IS A BIG REASON MANY CABLE COMPANIES HAVE FOUND PHONECOMPANY PARTNERS OVER THREE TO FIVE YEARS THE CABLE NETWORK THAT USED TO BE ANALOG ONEWAY AND PASSIVE WILL BECOME DIGITAL TWOWAY AND INTERACTIVE SAYS MATT MILLER VICE PRESIDENT OF TECHNOLOGY AT GENERAL INSTRUMENT ONE PIECE OF JARGON STANDS ABOVE ALL OTHERS IN THIS CONFUSING WORLD ATM WHICH HAS NOTHING TO DO WITH CASH MACHINES IS EMERGING AS THE LINGUA FRANCA THAT WILL ENSURE THAT ALL PARTS OF THESE NEW NETWORKS SHOULD EVENTUALLY WORK TOGETHER THE TECHNOLOGY'S FULL NAME IS ASYNCHRONOUS TRANSFER MODE A NEW SET OF GROUND RULES FOR HOW MULTIMEDIA DATA IS TRANSPORTED AND ROUTED IT DOESN'T REQUIRE A PARTICULAR TYPE OF WIRE OR SPECIFY A PARTICULAR SPEED RATHER ATM DEFINES WHAT MIGHT BE DESCRIBED AS THE ATOMS THAT WILL MAKE UP THE FUTURE COMMUNICATIONS UNIVERSE CONVERTING EACH MESSAGE VIDEO CLIP OR SONG INTO DATA PACKETS THAT ARE A CONSISTENT SIZE AND ACT ACCORDING TO CONSISTENT RULES AND THE CABLE PHONE AND COMPUTER INDUSTRIES WITH A RARE DEGREE OF UNANIMITY SAY ATM WILL BE THE LANGUAGE THEY ADOPT AS THEY PREPARE FOR 21STCENTURY NETWORKS IT WILL TOUCH VIRTUALLY EVERYBODY SOMETIME IN THE NEXT DECADE SAYS ANDREW LUDWICK CHIEF EXECUTIVE OF SYNOPTICS COMMUNICATIONS INC A NETWORKHARDWARE MAKER IN SANTA CLARA CALIF PLAYBACK IS WHERE THE HOTTEST STANDARDS BATTLES ARE RAGING THOUGH CDROM DRIVES FOR PCS ARE A SURE BET IT'S FAR FROM CLEAR WHETHER ANY COMPANY CAN DEVELOP AND SUCCESSFULLY MARKET A POPULAR TECHNOLOGY FOR PLAYING DISK SOFTWARE ON TV PHILIPS ELECTRONICS NV HAS SOLD ONLY 300000 OF ITS COMPACT DISKINTERACTIVE PLAYERS IN 2 1/2 YEARS TANDY CORP AFTER DISAPPOINTING SALES HAS STOPPED MAKING ITS VIS SYSTEM FOR PLAYING SPECIAL CDROM DISKS ON TV THE FIRST LICENSEE FOR 3DO'S HIGHERSPEED TECHNOLOGY MATSUSHITA ELECTRIC INDUSTRIAL CO HASN'T SOLD MANY OF THE GAME PLAYERS MOREPOWERFUL MACHINES ARE ON THE WAY A MORE FARREACHING STRUGGLE INVOLVES THE LINK BETWEEN THE TV AND THE INFORMATION HIGHWAY AT ITS HEART IS A BASIC QUESTION WHO CONTROLS THE INFORMATION THAT FLOWS TO THE HOME THE SETTOP DECODER BOX IS A KEY SYMBOL TODAY CABLE OPERATORS OWN IT AND DICTATE THE CHOICES AVAILABLE TO CONSUMERS TELEPHONE AND COMPUTER COMPANIES ARE PUSHING FOR A BROADER CONCEPT OF TWOWAY COMMUNICATIONS THAT WOULD ALLOW EVERY CONSUMER TO BE A VIDEO BROADCASTER AMERICAN TELEPHONE & TELEGRAPH CO ARGUES THAT A CONSUMER SHOULD OWN HIS OWN SETTOP BOX AND TAKE IT WITH HIM TO USE IN ANY CITY OR TOWN WHO GETS THE ROYALTIES AND HOW MANY GATES YOU GO THROUGH THESE ARE PUBLICPOLICY ISSUES SAYS JEFFREY BERG CHAIRMAN OF THE LOS ANGELES TALENT AGENCY INTERNATIONAL CREATIVE MANAGEMENT IT'S NOT JUST AN ACT OF COMMERCE TECHNOLOGY AND PRICING WILL SHAPE THE DEBATE CABLE COMPANIES PAY ABOUT 125 FOR SETTOP DECODERS BASED ON TODAY'S ANALOG TECHNOLOGY FOR MOVIESONDEMAND INTERACTIVE GAMES AND OTHER NEW SERVICES THE BOXES MUST GET A LOT SMARTER THEY WILL NEED A MICROPROCESSOR CHIP TO HANDLE COMPUTING FUNCTIONS MEMORY TO STORE DATA AND OTHER SPECIAL CHIPS FOR MANIPULATING GRAPHICS AT HIGH SPEED THAT'S ALL IN ADDITION TO CIRCUITRY TO DESCRAMBLE VIDEO SIGNALS AND CHANGE CHANNELS DEPENDING ON HOW MUCH SOPHISTICATION IS DESIRED SMART SETTOP BOXES ARE CURRENTLY EXPECTED TO COST 200 TO 500 EACH THAT MEANS IT COULD COST AS MUCH AS 30 BILLION TO EQUIP ALL 60 MILLION US CABLE SUBSCRIBERS WITH SO MUCH MONEY AT STAKE AND EXACTLY WHAT CONSUMERS WILL BE WILLING TO PAY SO UNCERTAIN IT DOESN'T MAKE SENSE TO COMMIT TO ANY TECHNOLOGY TOO EARLY THE FEDERAL COMMUNICATIONS COMMISSION IS BACKING THE IDEA OF UPGRADES DECODERS AND TV SETS WOULD HAVE SLOTS SO THAT SPECIAL MODULES OF CIRCUITRY COULD BE EASILY ADDED LATER THIS PLAN ALSO FITS THE STRATEGIES OF SOME BIG CABLE OPERATORS SUCH AS TELECOMMUNICATIONS INC RATHER THAN JUMP ALL THE WAY TO TWOWAY VIDEO TCI WANTS TO MOVE INITIALLY TO SIMPLER 500CHANNEL SYSTEMS TO HEAD OFF COMPETITION FROM DIRECTBROADCAST SATELLITES THE DBS SYSTEMS ARE EXPECTED TO DELIVER ABOUT 150 CHANNELS STARTING NEXT MONTH TO HOMES EQUIPPED WITH SMALL RECEIVER DISHES AT&T AND SOME COMPUTER COMPANIES WANT TO LET TVS HOME COMPUTERS AND OTHER APPLIANCES SHARE INFORMATION AMONG THEMSELVES AND WITH THE OUTSIDE WORLD THE TELECOMMUNICATIONS GIANT IS BACKING A CONCEPT CALLED SAGE THAT USES A HOME NETWORKING DEVICE CONTROLLED BY VARIOUS HARDWARE AND SOFTWARE ADDONS FROM THIRDPARTY COMPANIES THE WHOLE IDEA OF OPEN TECHNOLOGY IS THAT MOST OF THE SMART PEOPLE WORK FOR SOMEBODY ELSE NO MATTER WHO YOU ARE SAYS CARL LEDBETTER PRESIDENT OF AT&T'S CONSUMERPRODUCTS GROUP EXISTING SETTOP BOX MAKERS INCLUDING GENERAL INSTRUMENT AND SCIENTIFICATLANTA INC FACE NEW COMPETITION FROM COMPUTER AND CHIP MAKERS SUCH AS HEWLETTPACKARD AND INTEL BUT THE POWER OF CUSTOMERS SUCH AS TCI MAY KEEP SETTOP BOXES A LOWPROFIT COMMODITY BUSINESS I FEEL SORRY FOR THESE GUYS SAYS WM TRIP HAWKINS CHIEF EXECUTIVE OF 3DO THEY ARE AT THE MERCY OF THEIR CUSTOMERS SOFTWARE SUPPLIERS COULD BE IN THE DRIVER'S SEAT WITHOUT GUIDES AND NAVIGATION PROGRAMS CONSUMERS WILL HAVE TROUBLE FINDING THEIR WAY THROUGH MYRIAD ENTERTAINMENT CHOICES SOCALLED AGENT PROGRAMS ARE EXPECTED TO LEARN THEIR PREFERENCES AND HIGHLIGHT OFFERINGS HIDDEN BELOW WHAT CONSUMERS SEE ON THE SCREEN WILL BE A MORE FUNDAMENTAL SOFTWARE LAYER NEW VARIETIES OF OPERATING SYSTEMS WILL HAVE TO CONTROL THE FLOW OF VIDEO AND SOUND TO A TELEVISION IN REAL TIME WITHOUT THE INTERRUPTIONS TOLERABLE IN COMPUTERS OPERATING SYSTEMS ALSO WILL HELP ESTABLISH TECHNICAL GROUND RULES FOR DEVELOPING APPLICATIONS LIKE INTERACTIVE GAME SHOWS HOME SHOPPING AND VIDEO MAIL COMPANIES THAT HOPE TO SUPPLY OPERATING SYSTEMS INCLUDE MICROSOFT APPLE SILICON GRAPHICS 3DO KALEIDA LABS GEOWORKS ALAMEDA CALIF AND MICROWARE SYSTEMS CORP A SMALL COMPANY IN DES MOINES IOWA MICROWARE LANDED THE OPERATINGSYSTEM ORDER FOR THE BOXES BELL ATLANTIC WILL USE BECAUSE THIS SOFTWARE WILL WIELD SO MUCH INFLUENCE OVER HOW PEOPLE COMMUNICATE CUSTOMERS ARE EVALUATING OPERATING SYSTEMS VERY CAREFULLY WE WILL BE VERY CAUTIOUS WHEN WE PICK A VENDOR FOR THE OPERATING SYSTEM SAYS ROBERT THOMSON A SENIOR VICE PRESIDENT AT TCI WE HAVE TO MAKE SURE THERE IS A PREMIUM FOR OPEN ACCESS THAT DOESN'T CREATE HURDLES OR HIDDEN ADVANTAGES FOR ANY PARTICULAR COMPANY SOME INDUSTRY EXECUTIVES WANT THE GOVERNMENT TO REQUIRE PUBLICATION OF KEY SPECIFICATIONS FOR COMMUNICATIONS COMPRESSION PRIVACY AND OTHER FUNCTIONS THAT WILL DETERMINE WHETHER FUTURE SETTOP BOXES CAN WORK TOGETHER WAYNE ROSING PRESIDENT OF A SUN MICROSYSTEMS INC UNIT CALLED FIRSTPERSON INC WORKING ON ITS OWN OPERATING SYSTEM FOR SETTOP BOXES USES THE ANALOGY OF CAMERA FILM THE SPACING OF SPROCKET HOLES IS FIXED BUT THAT DOESN'T PREVENT COMPETITION AMONG FILM MAKERS OR DEVELOPMENT OF PROPRIETARY TECHNOLOGIES BUT MICROSOFT WHICH HAS MORE THAN 300 PEOPLE WORKING ON INTERACTIVETV PROJECTS ARGUES THAT IT IS TOO EARLY FOR SUCH SPECIFICATIONS CHAIRMAN WILLIAM GATES PREDICTS THAT STANDARDS WILL EMERGE ONLY AFTER YEARS OF TESTS AND MARKETPLACE JOSTLING EVERYBODY'S GOING TO TAKE A SHOT AT THIS THING HE SAYS MR CLARK IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU COMPANIES ARE SCRAMBLING TO ESTABLISH MULTIMEDIA STANDARDS FOR FUNCTION SQUEEZES VIDEO AND OTHER MULTIMEDIA INFORMATION SO IT CAN BE TRANSMITTED AND STORED MORE EASILY CONTESTANTS DIGICIPHER II DEVELOPED BY GENERAL INSTRUMENT VS MPEG2 FROM THE MOVING PICTURE EXPERTS GROUP BETTING LINE DIGICIPHER II HAS A HEAD START BUT CABLETV COMPANIES ARE LINING UP BEHIND NONPROPRIETARY MPEG2 APPROACH FUNCTION STORE AND DISTRIBUTE MOVIES TV SHOWS MUSIC AND OTHER MULTIMEDIA INFORMATION BETTING LINE WIDE OPEN SEVERAL PLAYERS HAVE IMPORTANT MARKET TESTS OR PARTNERSHIPS FUNCTION PROVIDE COMPUTING POWER TO GIVE TVS INTERACTIVE CAPABILITY BETTING LINE CABLE AND PHONE COMPANIES WILL BUY FROM MULTIPLE VENDORS LIMITING PRICES AND PROFITS FOR BOX MAKERS FUNCTION MANAGE SETTOP DECODERS AND THEIR CONNECTIONS WITH SERVERS AND OTHER NETWORKING HARDWARE AND SOFTWARE BETTING LINE MICROWARE HAS A HEAD START BUT BIG ORDERS WON'T BE PLACED UNTIL 1995 OR 1996 9403210122 940321 REVIEW & OUTLOOK EDITORIAL ASIDES NOT FOR ROSTY REP DANNY ROSTENKOWSKI'S VICTORY IN THE DEMOCRATIC PRIMARY LAST WEEK SHOWS THAT THE PRINCE OF PORKBARREL POLITICS STILL HAS PLENTY OF BUDDIES IN CHICAGO THE CHICAGO SUNTIMES HOWEVER IS NOT AMONG THEM A FACT WE GOT WRONG IN AN EDITORIAL FRIDAY CONGRATULATIONS DANNY IN FACT THE SUNTIMES SEEMS TO SHARE OUR VIEW OF THE CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE IN AN EDITORIAL ENDORSING RIVAL JOHN CULLERTON A STATE SENATOR THE SUNTIMES WROTE NEITHER PORK NOR BILL CLINTON'S SUCCESS IS IMPORTANT ENOUGH TO TOLERATE ROSTENKOWSKI'S CONTINUED ASSAULT ON PUBLIC INTEGRITY WE COULDN'T HAVE SAID IT BETTER OURSELVES 9403210121 940321 TECHNOLOGY & HEALTH BIPARTISAN MEETINGS OF SENATE PANEL SEEK TO RESOLVE HEALTH REFORM APPROACH BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE FINANCE COMMITTEE BEGAN TWO DAYS OF BIPARTISAN MEETINGS ON HEALTHCARE REFORM AMID INCREASED SIGNS THAT THE REPUBLICAN LEADERSHIP WILL RESIST ANYTHING MORE THAN A VOLUNTARY APPROACH TO PAYING FOR INSURANCE COVERAGE THE CLINTON ADMINISTRATION WANTS ALL EMPLOYERS TO HELP PAY FOR THEIR WORKERS' INSURANCE WHILE MODERATE REPUBLICANS FAVOR A MIX OF SUBSIDIES AND MANDATES THAT PUT THE BURDEN ON INDIVIDUALS TO ACQUIRE SOME MINIMAL COVERAGE BETWEEN THE TWO CAMPS A MAJORITY OF THE FINANCE PANEL SUPPORTS SUCH A REQUIREMENT TO ACHIEVE THE GOAL OF UNIVERSAL COVERAGE FOR ALL AMERICANS BUT YESTERDAY SENATE MINORITY LEADER ROBERT DOLE STEPPED BACK FROM THAT VIEW AND SAID HEALTH LEGISLATION THIS YEAR WILL BE WITHOUT MANDATES ENTIRELY IF A VOLUNTARY APPROACH DOESN'T WORK WE COULD COME BACK AND MAYBE HAVE TO DO SOME OF THIS MANDATORY STUFF IN FIVE OR SIX YEARS THE KANSAS REPUBLICAN SAID ON NBC NEWS'S MEET THE PRESS THE REPUBLICAN LEADER'S COMMENTS REFLECT HIS INCREASED SKITTISHNESS OVER THE INDIVIDUAL MANDATE ESPOUSED BY GOP MODERATES WHO WOULD USE THE TAX CODE TO REQUIRE ALL PERSONS TO PAY FOR SOME COVERAGE THE IDEA WON EARLY SUPPORT PARTLY BECAUSE IT GAVE REPUBLICANS A MEANS TO APPEASE BUSINESS AND TO COUNTER THE CLINTON PLAN BUT MR DOLE'S POLITICAL INSTINCTS ARE THAT THE INDIVIDUAL VS EMPLOYER DISTINCTION IS A HARD SELL WITH VOTERS WHO ARE ACCUSTOMED TO HAVING THEIR EMPLOYERS PICK UP PART OF THE COST OF COVERAGE THE SAFER POLITICAL COURSE AND ONE APPEALING TO CONSERVATIVES IS TO RESIST THE MANDATE DEBATE ENTIRELY AND INSTEAD GO TO THE LOWEST COMMON DENOMINATOR OF A MORE INCREMENTAL VOLUNTARY APPROACH DEMOCRATS ARE ALREADY MOVING TOWARD A MORE PHASEDIN VERSION OF THE CLINTON PLAN AND A HYBRID OF MANDATES TO LESSEN THE BURDEN ON SMALL BUSINESS BUT A PURELY VOLUNTARY APPROACH WOULD BE CRITICIZED AS A RETREAT FROM THE PRESIDENT'S GOAL OF UNIVERSAL COVERAGE SOME DEMOCRATS FEAR MR DOLE'S TRUE PURPOSE IS TO PREVENT ANY LEGISLATIVE TRIUMPH THAT WOULD HELP THE MAJORITY PARTY GOING INTO THE MIDTERM ELECTIONS THIS FALL LIKE FEW OTHER COMMITTEES IN CONGRESS THE SENATE FINANCE COMMITTEE IS A FORUM FOR THIS MANEUVERING MANY OBSERVERS BELIEVE IT IS STILL THE MOST LOGICAL PLACE WHERE A COMPROMISE CAN BE STRUCK ON LEGISLATION THIS YEAR AND THE SENATE COULD BREAK CUSTOM AND TAKE ITS BILL TO THE FLOOR BEFORE THE HOUSE ACTS MR DOLE AND MAJORITY LEADER GEORGE MITCHELL EACH HAVE SEATS ON THE FINANCE COMMITTEE AND THE 20MEMBER PANEL IS A POWER BASE FOR THOSE REPUBLICANS SUCH AS JOHN CHAFEE OF RHODE ISLAND AND BOB PACKWOOD OF OREGON WHO HAVE ESPOUSED SOME TYPE OF MANDATE CHAIRMAN DANIEL PATRICK MOYNIHAN D NY WHOSE NEOCONSERVATIVE DAYS INCLUDED A STINT IN THE NIXON ADMINISTRATION WHEN IT ATTEMPTED HEALTHCARE REFORM DECADES AGO WALKS A FINE LINE REACHING OUT TO MR DOLE TO GAIN SOME LEVERAGE AGAINST LIBERALS IN HIS OWN PARTY WHILE FAITHFUL TO THE GOAL OF UNIVERSAL COVERAGE MR MOYNIHAN APPEARS SYMPATHETIC TO A MORE GRADUAL MARKETORIENTED APPROACH THAN THAT OF THE WHITE HOUSE DESPITE PAST ALLIANCES THERE ARE PERIODIC TENSIONS BETWEEN THE CHAIRMAN AND MR MITCHELL WHO IS MORE AGGRESSIVE IN ADVANCING THE PRESIDENT'S CASE AND SEEMS TO WELCOME LABOR AND HUMAN RESOURCES COMMITTEE CHAIRMAN EDWARD KENNEDY D MASS AS A LIBERAL COUNTERWEIGHT TO MR MOYNIHAN CONVENTIONAL WISDOM SAYS MR MITCHELL IS WEAKER SINCE HE ANNOUNCED HE WILL RETIRE AT THE END OF THIS YEAR BUT THE OFTEN CAUTIOUS MAINE DEMOCRAT MAY IN FACT FEEL LESS ENCUMBERED IN USING HIS POSITION TO FORCE THE ISSUE HE HAS THE POWER OF PROCESS YOU DON'T GO HOME FRIDAYS IF THE MAJORITY LEADER DOESN'T WANT YOU TO SAID SEN JAY ROCKEFELLER D WVA A FINANCE COMMITTEE MEMBER AS IF TO UNDERSCORE MR MITCHELL'S CONTINUED ROLE THE WHITE HOUSE WAS CAREFUL TO INCLUDE HIM WHEN THE PRESIDENT MET WITH MR MOYNIHAN ON THE HEALTH ISSUE LAST WEEK ASKED ABOUT HIS ROLE MR MITCHELL SHUNS THE TITLE OF BROKER BUT IS EAGER TO HAVE A PART I'M DETERMINED TO GET IT DONE MR MITCHELL SAID IN AN INTERVIEW I HOPE TO BE VERY ACTIVE FEW EXPECT ANY RESOLUTION TO COME OUT OF THE COMMITTEE'S MEETINGS YESTERDAY AND TODAY WHICH MR ROCKEFELLER DESCRIBED AS 20 WHITE MALES IN BLUE JEANS BUT THE WEST VIRGINIAN SAID HIMSELF THAT THE EVENT HELD AT A CONFERENCE CENTER IN SUBURBAN VIRGINIA COULD HELP ALL SIDES COME OUT FROM BEHIND OUR PULPITS THE STRUCTURE LIVES UP TO ITS BILLING AS A SEMINAR WITH ACADEMIC VISITORS BUT IS ALSO ENOUGH OF A RETREAT TO ALLOW MEMBERS TIME TO TALK WITHOUT FEELING FORCED TO DO SO HILARY STOUT CONTRIBUTED TO THIS ARTICLE 9403210120 940321 INTERNATIONAL MEXICAN PEASANTS STEP UP THE PACE OF LAND SEIZURES GOVERNMENT FORCED TO CHOOSE BETWEEN PROMISED REFORM AND EFFICIENT AGRICULTURE BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL RANCHO SAN JACINTO MEXICO TIBURCIO RUIZ A 23YEAROLD PEASANT FARMER AND DOZENS OF COMPANIONS SEIZED THIS SPRAWLING CATTLE RANCH IN THE STATE OF CHIAPAS TWO WEEKS AGO AND PLAN TO FARM IT WITH THE LAND HE SAYS COMES A CHANCE FOR A FUTURE THE GOVERNMENT MUST BUY US THIS LAND MR RUIZ SAYS IN THE SMOKE OF A CAMPFIRE WE'RE NOT LEAVING IT EMBOLDENED BY THE MAYAN INDIAN UPRISING NEW YEAR'S DAY PEOPLE IN CHIAPAS ARE SEIZING LAND THROUGHOUT THE IMPOVERISHED STATE THE SEIZURES LARGELY AT THE EDGE OF REBEL STRONGHOLDS ARE A BOLD ATTEMPT TO FORCE THE FEDERAL GOVERNMENT TO COMPLY WITH THE OLD OFTENBROKEN PROMISE THAT LAND WOULD BE GIVEN TO ANY PEASANT WHO COULD FARM IT SINCE THE UPRISING ANGRY CATTLEMEN SAY THAT MORE THAN 200 PROPERTIES IN THE COUNTY OF OCOSINGO ALONE HAVE BEEN INVADED AND THAT THE PACE HAS QUICKENED IN THE LAST TWO WEEKS THE CALL FOR GOVERNMENT LAND REFORM HAS NOT ONLY BEEN ONE OF THE MAJOR DEMANDS BY THE CHIAPAS REBELS BUT RESONATES THROUGHOUT MEXICO WHERE NEARLY A THIRD OF THE POPULATION STILL LIVE ON FARMS THAT ARE TYPICALLY SMALL AND INEFFICIENT BUT THE GOVERNMENT FACES A DILEMMA IF IT SPLITS UP BIG RANCHES AND FARMS TO HAND LAND TO PEASANTS IT WILL MAKE MEXICAN AGRICULTURE EVEN LESS EFFICIENT THAN IT IS NOW THE NORTH AMERICAN FREE TRADE AGREEMENT WILL PENALIZE ANY INEFFICIENCIES BECAUSE THE MEXICAN FARMERS WITH A HANDFUL OF ACRES WILL HAVE TO COMPETE WITH AMERICANS WHOSE FARMS OF HUNDREDS OR THOUSANDS OF ACRES JUSTIFY THE USE OF THE LATEST EQUIPMENT IF THE GOVERNMENT TAKES LAND FROM ITS OWNERS IT COULD SCARE AWAY THE FOREIGN INVESTMENT AND KNOWHOW THAT IT BELIEVES IS CRITICAL TO STRAIGHTENING OUT MEXICO'S WOEFUL FARMING INDUSTRY PRESIDENT CARLOS SALINAS DE GORTARI HAS ATTEMPTED TO MAKE AGRICULTURE MORE EFFICIENT BY PUSHING THROUGH SWEEPING LEGAL CHANGES AMONG THEM ENDING A DECADESOLD PROGRAM THAT AWARDED FARMING RIGHTS ON SMALL PLOTS OF LAND TO THE NATION'S PEASANTS THOUGH 32 MILLION MEXICAN FAMILIES EVENTUALLY WON SUCH PLOTS THE FARMS HAVE PROVED INEFFICIENTLY SMALL EVEN AS A FAMILY FOOD SOURCE STILL IF THE GOVERNMENT DOESN'T FIGURE OUT A WAY TO ONCE AGAIN PASS SOME HOLDINGS ON TO THE PEASANTS WHO FEEL THEY ARE ENTITLED TO LAND AS THEIR LEGACY FROM THE BLOODY 19101920 MEXICAN REVOLUTION MEXICO MAY FACE MORE UNREST AND NOT JUST IN CHIAPAS FOR EXAMPLE IN CHIHUAHUA STATE ACROSS FROM TEXAS SQUATTERS OFTEN SEIZE LAND FROM THE WEALTHY IN A PLAY OFF THE NAME OF CHIAPAS REBEL LEADER SUBCOMANDANTE MARCOS A NATIONAL FARM LEADER AGITATING FOR GREATER FARM AID IN THE HEARTLAND STATE OF JALISCO HAS TAKEN TO CALLING HIMSELF SUBCOMANDANTE MAX AT RANCHO SAN JACINTO IN CHIAPAS MR RUIZ AND HIS COMPANIONS INSIST THE RANCH SHOULD BE BROKEN UP INTO PARCELS AND GIVEN TO THEM BECAUSE OF ITS SIZE PEASANT FARMER LEADERS SUSPECT IT'S AN ILLEGAL ACCUMULATION OF LAND AT MORE THAN 1000 ACRES EVEN THOUGH IT MAY HAVE MULTIPLE OWNERS THE MAYAN SQUATTERS WHO SAY THEY AREN'T ALIGNED WITH CHIAPAS'S REBELS SAY THEY TOOK MATTERS INTO THEIR OWN HANDS BECAUSE THEY AREN'T CONFIDENT THE PEACE TALKS WILL ADDRESS THEIR PROBLEMS SOME OF THE MAYAN SQUATTERS AT RANCHO SAN JACINTO ACTUALLY COME FROM A FARM THAT PEASANTS OWN COMMUNALLY BUT IN A TALE FAMILIAR THROUGHOUT THE COUNTRYSIDE THE LAND HAS BEEN PASSED DOWN TO SO MANY SONS AND DAUGHTERS THAT IT CAN NO LONGER SUPPORT ITS 250 RESIDENTS MOREOVER MR RUIZ SAYS THE LAND IS STREWN WITH ROCKS AND IS WATERLESS OTHER SQUATTERS HAVE WAITED YEARS TO GET LAND PROMISED UNDER THE OLD MEXICAN CONSTITUTION AND MANY HAVE ACTUALLY DIED IN THE LAND FIGHTS OVER THE LAST 25 YEARS ACCORDING TO HUMAN RIGHTS REPORTS AT RANCHO JOTOLA 36YEAROLD MANUEL AQUILAR SHOWS GOVERNMENT DOCUMENTS DETAILING HIS COMMUNITY'S 25YEAR BATTLE FOR LAND IN 1975 SEVERAL MEN WERE BADLY BEATEN BY CATTLEMEN'S THUGS AND ONE MAN DIED FROM HIS WOUNDS ACCORDING TO TESTIMONY IN ONE DOCUMENT WE'RE ALWAYS STEPPED ON BECAUSE OF OUR HUMILITY SAYS MR AQUILAR THE RICH SEE US AND THEY TREAT US LIKE ANIMALS IN THE FACE OF INVASIONS BY GROUPS LIKE MR RUIZ'S SCORES OF RANCHERS HAVE ABANDONED THEIR LANDS AND MOVED CATTLE TO A NEIGHBORING STATE FEARING THEIR CATTLE WILL BE STOLEN OR SLAUGHTERED AT RANCHO SANTA ROSA JUST OUTSIDE OCOSINGO INEYDA SOLIS CHECKS ON HER HOME WITH ITS SHOWCASE CEDARWOOD STAIRCASE BUT DECIDES SHE SHOULDN'T RETURN I DON'T WANT TO COME BACK AND LIVE HERE BECAUSE OF MY LITTLE GIRL SHE SAYS SOFTLY CRADLING HER NINEMONTHOLD BABY WHAT IF SOMEONE COMES IN THE NIGHT AND WE HAVE TO FLEE EVEN THE FOREMAN AT NEARBY RANCHO MOSIL REFUSED TO STAY ITS OWNER JOSE BARRAGAN SAYS HE HIS FAMILY AND HIS EMPLOYEES ARE AFRAID TO LIVE THERE HE RECENTLY PAID 5000 TO MOVE HALF HIS CATTLE TO A NEARBY STATE BUT SOME RANCHERS SEEM TO BE PREPARING A COUNTERATTACK OCOSINGO CATTLEMEN HAVE ALREADY SET UP A COMMITTEE OF DEFENSE TO COUNTER THE PEASANTS COUNCIL OF VIGILANCE HUNDREDS OF CATTLEMEN SEEKING A GOVERNMENT CRACKDOWN ON THE SQUATTERS DEMONSTRATED ON SATURDAY IN THE TOURIST CITY OF SAN CRISTOBAL DE LAS CASAS THE CATTLEMEN ONLY SCOFF AT TALK THAT THE GOVERNMENT WILL BUY LAND AND GIVE IT TO IMPOVERISHED INDIANS WE HAVE THE RIGHT TO OWN LAND AND NO ONE HERE IS GOING TO SELL IT TO ANYONE SAYS MR BARRAGAN THE RANCHER WHO OWNS RANCHO MOSIL CATTLEMAN PORFIRIO MARTINEZ ADDS TELL THE GOVERNMENT TO APPLY THE LAW BECAUSE IF THERE IS ANOTHER OUTBREAK OF VIOLENCE WE ALL LOSE 9403210119 940321 RUSSIAN RUBLE STEADY AT FRIDAY'S FIXING BUT DECLINE EXPECTED SPECIAL TO THE WALL STREET JOURNAL MOSCOW THE RUBLE HELD STEADY AGAINST THE DOLLAR AT FRIDAY'S FIXING AT THE MOSCOW INTERBANK CURRENCY EXCHANGE BUT TRADERS SAID THE RUSSIAN CURRENCY IS LIKELY TO RESUME ITS DOWNTREND THIS WEEK THE DOLLAR WAS FIXED AT 1722 RUBLES FRIDAY DOWN SLIGHTLY FROM 1724 RUBLES THURSDAY TWO RUBLES DOESN'T SAY VERY MUCH SAID IGOR DORONIN CHIEF ANALYST AT THE CURRENCY EXCHANGE THE TREND IS TOWARD A GRADUAL SOFT INCREASE IN THE DOLLAR HE ADDED TRADERS SAID DEMAND FOR THE RUBLE FRIDAY STEMMED FROM A COINCIDENCE OF BANK ORDERS RATHER THAN ANY SHIFT IN THE MARKET'S OVERALL DIRECTION IN ADDITION PARTICIPANTS SAID THE CENTRAL BANK IS STRICTLY CONTROLLING THE MOVEMENTS OF THE RATE DESPITE THE GOVERNMENT'S RECENT SUCCESSES IN REDUCING INFLATION TRADERS SAID THE MARKET IS EXPECTING FURTHER INCREASES IN PRICES AND IS PUSHING THE RUBLE DOWN IN LINE WITH THEM VOLUME AT FRIDAY'S FIXING WAS MODERATE WITH 907 MILLION CHANGING HANDS UP FROM 663 MILLION THURSDAY 9403210118 940321 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ALLTEL CORP A SHELF OFFERING OF UP TO 250 MILLION OF DEBT SECURITIES AMERICAN EAGLE TANKERS INC A PROPOSED INITIAL OFFERING OF 8 MILLION COMMON SHARES AT AN ESTIMATED 14 AND 16 A SHARE WITH AN OVERALLOTMENT OPTION OF UP TO 12 MILLION ADDITIONAL SHARES VIA MORGAN STANLEY & CO HECLA MINING CO AN OFFERING 65 OF MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 975000 SHARES VIA MERRILL LYNCH & CO AND SALOMON BROTHERS INC 9403210117 940321 INTERNATIONAL WASHINGTON INSIGHT WHITE HOUSE TAKES OPTIMISTIC VIEW OF SOUTH AFRICA'S POLITICAL PROSPECTS BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MOST EAGERLY SOUGHT INVITATION IN TOWN THESE DAYS IS TO JOIN THE US DELEGATION TO SOUTH AFRICA'S COMING PRESIDENTIAL INAUGURATION WHILE SOUTH AFRICA'S FIRST ALLRACE ELECTIONS ARE STILL A MONTH AWAY AND THE INAUGURATION TWO WEEKS AFTER THAT WE'VE BEEN DELUGED WITH REQUESTS SAYS A US OFFICIAL THE OFFICIAL ADDS THAT AT LEAST HALF OF THE MEMBERS OF CONGRESS EVERY MAJOR AFRICANAMERICAN LEADER AND NUMEROUS BUSINESSMEN AND POLITICIANS HAVE SAID THEY WANT TO BE INCLUDED IN THE GROUP WHICH WILL LIKELY BE LED BY VICE PRESIDENT AL GORE DESPITE CONTINUING POLITICAL VIOLENCE IN SOUTH AFRICA AND THE REFUSAL OF ZULU LEADER MANGOSUTHU BUTHELEZI TO PARTICIPATE IN THE ELECTIONS THE CLINTON ADMINISTRATION IS OPTIMISTIC ABOUT SOUTH AFRICA'S POLITICAL PROSPECTS EVEN LAST WEEK'S DISCLOSURE THAT SENIOR OFFICIALS OF THE SOUTH AFRICAN POLICE HAVE BEEN INCITING BLACKONBLACK VIOLENCE BY ARMING TRAINING AND EVEN DIRECTING DEATH SQUAD ATTACKS BY MR BUTHELEZI'S BACKERS ON RIVAL SUPPORTERS OF THE AFRICAN NATIONAL CONGRESS HASN'T DIMMED THEIR ENTHUSIASM THE ADMINISTRATION WHICH SEES SOUTH AFRICA AS ONE OF THE VERY FEW BRIGHT SPOTS ON THE FOREIGNPOLICY SCENE AS WELL AS AN ISSUE WITH STRONG DOMESTIC PAYBACK IS WORKING TO SMOOTH THE COUNTRY'S TRANSITION THE US HAS PROVIDED 35 MILLION TO FINANCE VOTEREDUCATION PROGRAMS TRAIN ELECTION MONITORS AND HELP PREPARE PREVIOUSLY DISADVANTAGED POLITICAL PARTIES THERE ALSO HAS BEEN SOME SERIOUS BEHINDTHESCENES MANEUVERING IN THE PAST SEVERAL MONTHS THE US HAS QUIETLY TRIED TO PERSUADE MR BUTHELEZI TO PUT ASIDE HIS TALK OF WAR AND AGREE TO JOIN THE ELECTIONS THAT EFFORT HAS FAILED SO FAR MR BUTHELEZI'S INKATHA FREEDOM PARTY FAILED TO SUBMIT A CANDIDATE LIST BY LAST WEEK'S DEADLINE INKATHA LEADERS DISMISSED AS PROPAGANDA CHARGES THAT IT HAD COLLUDED WITH THE SOUTH AFRICAN SECURITY FORCES MR BUTHELEZI'S REFUSAL TO PARTICIPATE COULD MEAN MORE VIOLENCE SAYS PAULINE BAKER AN AFRICA EXPERT AT THE ASPEN INSTITUTE A THINK TANK BUT SHE SAYS THE ZULU LEADER HAS MARGINALIZED HIMSELF IN THE LAST YEAR BY NOT TAKING PART IN THE NEGOTIATED TRANSFER OF POWER THERE WAS A TIME WHEN YOU COULDN'T HAVE HELD MEANINGFUL ELECTIONS WITHOUT BUTHELEZI BUT NOT ANYMORE SHE SAYS PERHAPS THE BEST NEWS FOR THE ELECTIONS SAY MS BAKER AND US OFFICIALS IS THE OUTCOME OF THE RECENT BLOWUP IN BOPHUTHATSWANA WHEN CIVIL SERVANTS IN THE APARTHEIDCREATED BLACK HOMELAND TURNED ON THEIR RIGHTIST DESPOT AND DEMANDED THE RIGHT TO JOIN IN THE ELECTIONS THE UPRISING COULD HAVE SPIRALED OUT OF CONTROL ESPECIALLY WITH ARMED WHITE RACISTS POURING OVER THE BORDER TO DEFEND THE RIGHTIST LEADER INSTEAD SOUTH AFRICAN PRESIDENT FW DE KLERK AND AFRICAN NATIONAL CONGRESS HEAD NELSON MANDELA RESPONDED SWIFTLY AGREEING TO SEND IN TROOPS TO DEPOSE THE DESPOT AND REESTABLISH ORDER PERHAPS THE BEST NEWS FOR THE ELECTIONS SAY MS BAKER AND US OFFICIALS IS THE OUTCOME OF THE RECENT BLOWUP IN BOPHUTHATSWANA WHEN RESIDENTS OF THE BLACK HOMELAND THAT WAS CREATED UNDER APARTHEID TURNED ON THEIR RIGHTIST DESPOT AND DEMANDED THE RIGHT TO VOTE THE UPRISING COULD HAVE SPIRALED OUT OF CONTROL ESPECIALLY WITH ARMED WHITE RACISTS POURING OVER THE BORDER TO DEFEND THE RIGHTIST LEADER INSTEAD SOUTH AFRICAN PRESIDENT FW DE KLERK AND AFRICAN NATIONAL CONGRESS HEAD NELSON MANDELA RESPONDED SWIFTLY AGREEING TO SEND IN TROOPS TO DEPOSE THE DESPOT AND REESTABLISH ORDER THE EPISODE DESPITE 60 DEATHS MEANS THAT 15 MILLION MORE BLACK SOUTH AFRICANS WILL BE VOTING NEXT MONTH THE SOUTH AFRICAN RIGHT WAS SPLIT BY THE VIOLENCE AND THE HUMILIATION OF ITS DEFEAT WITH ONE KEY RIGHTIST LEADER SIGNING UP FOR THE ELECTIONS IMMEDIATELY AFTERWARDS BEST OF ALL SAYS MS BAKER BOPHUTHATSWANA PROVED THE LOYALTY OF THE WHITELED SECURITY FORCES US OFFICIALS SAY THAT THE REAL CHALLENGES FOR BOTH SOUTH AFRICA AND THE US WILL COME AFTER THE ELECTIONS THE NEW GOVERNMENT WILL HAVE TO ACT QUICKLY TO MEET THE RISING EXPECTATIONS OF NEWLY LIBERATED BLACK SOUTH AFRICANS THE CLINTON ADMINISTRATION PROBABLY WILL INCREASE ITS CURRENT FISCAL 1994 AID COMMITMENT OF 90 MILLION TO AROUND 165 MILLION OFFICIALS SAY WHILE THAT WOULD REPRESENT 20 OF US DEVELOPMENT AID FOR THE ENTIRE CONTINENT OF AFRICA IT IS PROVOKING SOME GROUSING AMONG SOUTH AFRICANS HOPING FOR A BAILOUT ON A SCALE CLOSER TO RUSSIA'S WITH FOREIGNAID MONEY TIGHT THE US IS HOPING TO MAKE UP SOME OF THE DIFFERENCE BY LENDING THE EXPERTISE OF A WIDE ARRAY OF US AGENCIES TO THE NEW GOVERNMENT THE ENERGY DEPARTMENT IS EXPLORING WAYS TO SUPPORT A MASSELECTRIFICATION PROGRAM THE COMMERCE DEPARTMENT IS SETTING UP A USSOUTH AFRICA BUSINESS DEVELOPMENT COMMITTEE TO ENCOURAGE THE RETURN OF US INVESTORS IT ALSO IS PRESSING STATE AND LOCAL GOVERNMENTS TO LIFT REMAINING SANCTIONS WITH TIME THE DEFENSE DEPARTMENT ALSO MAY GET INTO THE ACT ENCOURAGING SOUTH AFRICA TO TURN ITS EXCESS MILITARY CAPACITY INTO HUMANITARIAN RELIEF AND PEACEKEEPING MISSIONS DESPITE THE CURRENT SATISFACTION ON CAPITOL HILL MS BAKER SAYS THAT SOME CRITICS MAY END UP ACCUSING THE ADMINISTRATION OF FAVORING SOUTH AFRICA AT THE EXPENSE OF ITS FAR MORE NEEDY NEIGHBORS US OFFICIALS WILL LIKELY OFFER A DEFENSE FAMILIAR TO THE CURRENT RUSSIAPOLICY DEBATE A DEMOCRATIC ECONOMICALLY FLOURISHING SOUTH AFRICA THEY SAY IS THE BEST HOPE FOR A STABLE ECONOMICALLY SOUND AFRICA 9403210116 940321 INTERNATIONAL WORLD WIRE COMPILED BY CATHERINE BOLGAR SLOVAKIA'S PARLIAMENT VOTED TO PROHIBIT GOVERNMENT APPOINTEES FROM SERVING ON A PANEL PRIVATIZING STATEOWNED PROPERTY AS DETAILS EMERGED OF AN UNPRECEDENTED FLURRY OF SALES DURING THE FORMER GOVERNMENT'S FINAL WEEKS IN POWER BEGINNING WITH AN ALLNIGHT SESSION FEB 15 AND CONTINUING TO WITHIN HOURS OF PRIME MINISTER VLADIMIR MECIAR'S RESIGNATION LAST MONDAY STATE ASSETS VALUED AT NEARLY 96 MILLION WERE SOLD AT A FRACTION OF THEIR VALUE OFTEN TO MINISTERS OR THEIR ASSOCIATES MR MECIAR ORIGINALLY FACED THE THREAT OF A PARLIAMENTARY NOCONFIDENCE VOTE ON FEB 16 UNDER THE LAW PASSED FRIDAY TOP PRIVATIZATION EXECUTIVES ARE TO BE CHOSEN BY PARLIAMENT NOT THE GOVERNMENT THE NEWLY APPOINTED PRIVATIZATION MINISTER AND OTHERS IN THE NEW GOVERNMENT HAVE VOWED TO CLEAN UP THE PROCESS THROUGH A PREFERENCE FOR PUBLIC TENDERS SLOVAKIA HAS STRUGGLED TO STABILIZE ITS GOVERNMENT SINCE IT SPLIT FROM THE CZECH REPUBLIC IN JANUARY 1993 RUSSIAN FARMERS FACE SEVERE SHORTAGES OF FUEL FERTILIZER AND MACHINERY AS THEY BEGIN THE CRITICAL SPRING PLANTING PERIOD THE TRUD NEWSPAPER REPORTED FARMERS HAVE 60000 FEWER TRACTORS THAN A YEAR AGO AND ONLY 70 OF THOSE ARE OPERABLE BECAUSE OF A SHORTAGE OF SPARE PARTS FARMERS ALSO HAVE ONLY ONETHIRD AS MUCH FERTILIZER AS LAST SPRING AND ARE RUNNING SHORT OF FUEL MOSCOW PROMISED 29 BILLION TO HELP WITH SPRING PLANTING BUT HAS DELIVERED BARELY A TENTH OF IT SO FAR THE TRUD REPORT SAID 15 MILLION ACRES WON'T BE SOWN THIS YEAR DUE TO VARIOUS DIFFICULTIES RESULTING IN A DRASTIC DROP IN PRODUCTION TURKEY REOPENED THE BOSPORUS AFTER PUTTING OUT A FIRE ON AN OIL TANKER THAT COLLIDED WITH A FREIGHTER BUT BAD WEATHER HAMPERED CLEANUP EFFORTS BECAUSE OF STORMS IN THE BLACK SEA REGION TRAFFIC WAS LIMITED TO SHIPS LEAVING THAT AREA WITH PASSENGER SHIPS AND SMALL VESSELS GOING FIRST THE STRAIT BETWEEN THE MEDITERRANEAN AND BLACK SEAS HAD BEEN CLOSED FOR FIVE DAYS BACKING UP AT LEAST 200 SHIPS IN ONE OF THE WORLD'S BUSIEST SEA LANES UKRAINE ON FRIDAY CUT OFF ONE OF THREE LINES THAT SUPPLY ELECTRICITY TO CRIMEA CLAIMING THAT THE SECESSIONMINDED BLACK SEA PENINSULA HAD ABOUT 8 MILLION IN UNPAID ENERGY BILLS THE INTERFAX NEWS AGENCY REPORTED MANY REGIONS OF UKRAINE HAVE HUGE ENERGY DEBTS TO THE GOVERNMENT AND IT WAS POSSIBLE THE POWER CUT WAS PART OF THE POLITICAL BATTLE BETWEEN CRIMEA AND UKRAINE OVER AUTONOMY FOR THE PENINSULA WHOSE LEADER FAVORS TIES TO RUSSIA THREE US LAWYERS ARE TRAINING 25 CAMBODIANS AS CRIMINALDEFENSE ATTORNEYS IN AN EFFORT TO RESUSCITATE THE CAMBODIAN JUDICIAL SYSTEM THE US AGENCY FOR INTERNATIONAL DEVELOPMENT IS FUNDING THE PROJECT IN WHICH CAMBODIANS ARE TAUGHT CRIMINALDEFENSE PROCEDURES THE COUNTRY'S LEGAL SYSTEM WAS DESTROYED DURING THE COMMUNIST KHMER ROUGE'S REIGN OF TERROR IN THE 1970S THE PRESENT LEGAL SYSTEM IS BASED ON THE LAWS OF VIETNAM WHICH INVADED CAMBODIA IN 1979 AND ON LAWS ESTABLISHED BY THE UNITED NATIONS WHEN IT SUPERVISED CAMBODIA'S TRANSITION TO DEMOCRACY IN 1993 POLISH LEGISLATORS ADVANCED NEW CURBS ON WAGE INCREASES IN STATEOWNED ENTERPRISES THE BILL STILL MUST CLEAR THE SENATE AND PASSAGE IS EXPECTED THE GOVERNMENT WORRIED THAT WITHOUT THE CURBS MANAGERS OF STATE COMPANIES WOULD SURRENDER TO WORKER DEMANDS FOR HIGHER WAGES FUELING INFLATION WHICH IS EXPECTED TO DECLINE TO A 23 ANNUAL RATE THIS YEAR FROM 38 LAST YEAR UNDER THE LEGISLATION STATEOWNED ENTERPRISES WOULD HAVE TO PAY A 150 TAX ON WAGES THAT EXCEED LIMITS APPROVED THROUGH COLLECTIVE LABOR AGREEMENTS OR IN CONSULTATIONS WITH GOVERNMENT OFFICIALS THE FRENCH GOVERNMENT BACKED DOWN ON A JOBS PROPOSAL IN THE FACE OF VIOLENT PROTESTS THE GOVERNMENT SAID IT WOULD OPEN IMMEDIATE CONSULTATIONS WITH UNIONS AND STUDENTS TO MODIFY THE PROPOSAL TO LOWER ENTRYLEVEL PAY FOR YOUTHS IN AN EFFORT TO BOOST EMPLOYMENT THE GOVERNMENT'S RETREAT DIDN'T QUELL PROTESTS ACROSS THE COUNTRY BY STUDENTS AND LABOR UNIONS THE PROPOSAL WOULD HAVE CUT THE MINIMUM WAGE FOR RECENT GRADUATES BY 20 FOR A YEAR IF EMPLOYERS PROVIDED CERTAIN TRAINING THE GOVERNMENT ARGUED IT WAS NECESSARY TO BRING DOWN THE 25 JOBLESS RATE AMONG YOUNG PEOPLE BUT CRITICS SAID THE PROPOSAL CREATED A DOUBLE STANDARD AND WOULD HAVE LOWERED OTHER WAGES FRANCE'S LABOR MINISTER OFFERED A COMPROMISE THAT WOULD PAY YOUTHS 80 OF THE MINIMUM WAGE FOR DOING 80 OF A NORMAL DAY'S WORK KEEPING HOURLY PAY UNCHANGED THE OTHER 20 OF WORK TIME WOULD BE SPENT IN FORMAL TRAINING PRESERVATIONISTS SAY INDIA'S TAJ MAHAL IS SHOWING DAMAGE FROM POLLUTION AND GREASY FINGERS OF MILLIONS OF VISITORS THE COUNTRY'S HIGH COURT WHICH LAST YEAR ORDERED 212 FACTORIES NEAR THE 17THCENTURY MAUSOLEUM TO INSTALL POLLUTIONCONTROL EQUIPMENT THREATENED TO SHUT DOWN A NEARBY OIL REFINERY IF IT FAILED TO QUICKLY CURB EMISSIONS SWEDEN SCHEDULED A NATIONAL REFERENDUM ON MEMBERSHIP IN THE EUROPEAN UNION FOR NOV 13 THOUGH THE VOTE ISN'T BINDING LAWMAKERS HAVE VOWED TO ABIDE BY THE OUTCOME 9403210115 940314 CORPORATE FOCUS NOVELL FINDS NEW PRODUCTS CAN BE A MIXED BLESSING CUSTOMER RESISTANCE TO LATEST NETWORKING SOFTWARE SLOWS GROWTH BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL IN COMPUTER SOFTWARE TOO MUCH PROGRESS CAN BE A BAD THING NOVELL INC IS FINDING THIS OUT THE HARD WAY AS THE DOMINANT SUPPLIER OF NETWORKING SOFTWARE FOR PERSONAL COMPUTERS NOVELL IN RECENT YEARS HAS EARNED A LOYAL FOLLOWING AND STERLING PROFITS IT HAS INVESTED HEAVILY IN NEW PRODUCTS AND REPELLED REPEATED ATTACKS BY RIVALS IN RECENT MONTHS NOVELL EVEN HAS ABSORBED SEEMINGLY WITHOUT PUNISHMENT THE RELEASE BY ARCHRIVAL MICROSOFT CORP OF A BALLYHOOED NETWORKING PROGRAM I FEEL GOOD ABOUT WHAT WE'RE DOING SAYS RAYMOND NOORDA CHIEF EXECUTIVE OFFICER OF THE PROVO UTAH COMPANY YET WHILE WELLPOSITIONED TO DEFEND ITS NETWORKING FRANCHISE NOVELL'S GROWTH HAS SLOWED DRAMATICALLY AND FOR AN UNUSUAL REASON MOST HIGHTECH COMPANIES WORRY THAT NEW PRODUCTS WILL TAKE TOO MUCH AWAY TOO QUICKLY FROM ESTABLISHED PRODUCTS TRIGGERING A PAINFUL TRANSITION FROM ONE GENERATION TO ANOTHER NOVELL FACES THE OPPOSITE PROBLEM ITS CUSTOMERS ARE STUBBORNLY STICKING TO OLDER VERSIONS OF ITS FLAGSHIP NETWARE LINE BECAUSE THE NEWEST VERSION NETWARE 4 UPSETS ROUTINES AND REQUIRES TOO MUCH REEDUCATION IT'S A COMPLETE AND TOTAL PARADIGM SHIFT AND THAT'S THE PROBLEM SAYS RONALD NEELY PRESIDENT OF THE MIDMISSOURI NETWARE USERS GROUP EVERYONE AGREES THAT NETWARE 4 RELEASED A YEAR AGO CONTAINS AN IMPORTANT ADVANCE PAST VERSIONS OF THE PROGRAM ONLY SUPPORT A FEW HUNDRED PEOPLE ON A NETWORK FORCING LARGE ORGANIZATIONS TO MAINTAIN MANY CLUSTERS OF NETWORKS TO ENTER EACH CLUSTER A PERSON NEEDS A SEPARATE PASSWORD AND LOGON IT ISN'T UNCOMMON FOR A PERSON TO LOG ON TO A HALFDOZEN DIFFERENT NETWORKS IN THE COURSE OF A DAY NETWARE 4 CREATES A SINGLE DIRECTORY SYSTEM ACROSS THESE CLUSTERS ELIMINATING THE NEED FOR MORE THAN ONE PASSWORD AND LOGON THIS ADVANCE WILL MAKE IT POSSIBLE FOR INSTANCE FOR EMPLOYEES OF COMMONWEALTH EDISON CO A LARGE NOVELL CUSTOMER TO COMMUNICATE MORE QUICKLY WITH ONE ANOTHER IN THE EVENT OF AN EMERGENCY AT ONE OF THE UTILITY'S NUCLEARPOWER PLANTS NEVERTHELESS COMMONWEALTH RESISTED ADOPTING THE NEW NETWARE FOR MONTHS AND ONLY RECENTLY BEGAN MAKING THE SWITCH NOVELL COULD'VE MADE IT SMOOTHER SAYS CHRISTOPHER DUMAS THE UTILITY'S NETWORK COORDINATOR ONE OBSTACLE THAT INITIALLY STOPPED MR DUMAS IN HIS TRACKS THE NEW PROGRAM MEANT THAT HE HAD TO ISSUE NEARLY EVERYONE AT THE COMPANY NEW PASSWORDS NOVELL PLANS TO RELEASE AN UPDATED NETWARE 4 THIS SUMMER THAT WILL MAKE THE SHIFT EASIER MR NOORDA MEANWHILE THINKS CUSTOMER ACCEPTANCE FOR THE PROGRAM IS GROWING THE SWITCHOVER TO A MORE ADVANCED FORM OF NETWARE HOWEVER ISN'T NOVELL'S ONLY HEADACHE THE COMPANY IS STRUGGLING TO MAKE GOOD ON ITS ACQUISITION LAST JUNE OF UNIX SYSTEMS LABORATORIES INC FROM AMERICAN TELEPHONE & TELEGRAPH CO THE PURCHASE INSTANTLY MADE NOVELL THE LEADING SUPPLIER OF UNIX A COMPUTER OPERATING SYSTEM POPULAR AMONG SCIENTISTS AND ENGINEERS AN OPERATING SYSTEM CONTROLS THE BASIC FUNCTIONS OF A COMPUTER SUCH AS OPENING AND CLOSING FILES AND MANAGING THE FLOW OF DATA BETWEEN THE MACHINE'S VARIOUS HARDWARE PIECES BUT SO FAR NOVELL HAS FAILED TO EXPLOIT ITS UNIX ASSET FOR WHICH IT PAID NEARLY 600 MILLION IN COMBINED NEW STOCK AND WRITEOFFS DAVID CARD AN ANALYST AT INTERNATIONAL DATA CORP CALLS THE PURCHASE A BAD INVESTMENT THE STICKING POINT IS MAKING NETWARE MESH WITH UNIX NOVELL SAYS IT PLANS TO CLOSE THE GAP GRADUALLY BETWEEN THESE TWO DISTINCTLY DIFFERENT APPROACHES TO SOFTWARE MEANWHILE THE COMPANY IS TELLING CUSTOMERS TO RELY ON NETWARE FOR SHARING PRINTERS FILES AND MAIL UNIX IT SAYS IS BEST SUITED FOR CONTROLLING SOCALLED SERVER COMPUTERS WHICH FEED INFORMATION AND SERVICES TO DATABASES AND OTHER PROGRAMS USED BY INDIVIDUALS THIS DISTINCTION BETWEEN NETWARE AND UNIX STRIKES MANY AS ARBITRARY AND REFLECTS NOVELL'S UNWILLINGNESS TO EMBRACE UNIX OUT OF A FEAR THAT IT WILL UNDERCUT ITS TRADITIONAL PRODUCTS NOVELL IS TREATING UNIX AS A SIDE BET SAYS JAMIE LEWIS PRESIDENT OF THE BURTON GROUP A CONSULTANCY IN SALT LAKE CITY NOVELL'S HANDLING OF UNIX IS THE COMPANY'S BIGGEST WEAKNESS RIGHT NOW HE ADDS IT REFLECTS A CONFUSED STRATEGY ABOUT OPERATING SYSTEMS THIS CONFUSION MAY HAMPER THE PROGRESS OF UNIX WHICH FOR YEARS HAS FOUGHT AN UPHILL BATTLE AGAINST OPERATING SYSTEMS OFFERED BY MICROSOFT OR BY COMPUTER MAKERS THEMSELVES WHEN HE BOUGHT UNIX MR NOORDA PROMISED TO UNIFY ITS VARIOUS STRAINS THUS MAKING IT A STRONGER COMPETITOR WITH MICROSOFT'S WINDOWS AND APPLE COMPUTER INC'S MACINTOSH BUT NOVELL'S EFFORT TO SELL SOURCE LICENSES FOR UNIX WHICH WOULD GIVE BUYERS THE POWER TO RESHAPE THE SOFTWARE IN ANY WAY THEY SAW FIT MIGHT MAKE UNIX EVEN MORE FRAGMENTED SOME SAY NOVELL DEFENDS ITS STEWARDSHIP OF UNIX ARGUING THAT ITS RELATIONSHIP TO NETWARE REFLECTS THE DIFFERING WAYS IN WHICH THE PROGRAMS ARE USED THERE ARE TWO JOBS FILE NETWORKS AND APPLICATIONS SERVERS AND THERE ALWAYS WILL BE SAYS MICHAEL DEFAZIO WHO RUNS NOVELL'S UNIX BUSINESS CRITICS HOWEVER SAY NOVELL MUST MAKE IT POSSIBLE TO AT LEAST DO THESE TWO JOBS ON THE SAME COMPUTER WHICH CURRENTLY ISN'T POSSIBLE MR DEFAZIO CONCEDES THE POINT AND INSISTS NOVELL WILL ACCOMPLISH THIS BY 1995 FOR HIS PART MR NOORDA SEEMS UNRUFFLED BY THE DIFFICULTIES IN TAMING UNIX OR MANAGING THE SHIFT BETWEEN NETWARE'S GENERATIONS ONE OF THE HANDFUL OF MANAGERS RESPONSIBLE DURING THE 1980S FOR TURNING PC SOFTWARE INTO A LARGE GLOBAL INDUSTRY MR NOORDA NOW 69 YEARS OLD AND AILING IS SEARCHING FOR A SUCCESSOR IN RECENT YEARS HIS RELUCTANCE TO SURRENDER THE REINS HAS CONTRIBUTED TO THE DEPARTURE OF SEVERAL SENIOR MANAGERS AT THE COMPANY MEANWHILE MR NOORDA'S PAST ATTEMPTS AT MERGING WITH ANOTHER SOFTWARE GIANT TALKS WITH LOTUS DEVELOPMENT CORP AND MICROSOFT FELL APART IN THE EARLY 1990S STILL MAY GIVE THE IMPRESSION THAT THE COMPANY IS IN SEARCH OF A SUITOR BUT MR NOORDA MAKES IT PLAIN THAT NOVELL HAS WHAT IT TAKES TO REMAIN INDEPENDENT AND SURVIVE HIS DEPARTURE WE'RE PRETTY CONFIDENT WE'RE GOING TO CONTINUE TO DO WELL HE SAYS NOVELL INC ACQUIRED UNIX SYSTEMS LABORATORIES INC FOR 346 MILLION IN NOVELL STOCK LAST MONDAY'S CORPORATE FOCUS ARTICLE SAID NOVELL'S COST WAS NEARLY 600 MILLION IN COMBINED NEW STOCK AND WRITEOFFS 9403210114 940321 MACY'S BOARD IS SAID TO CLASH OVER VALUATION SENIOR CREDITORS THREATEN TO BACK FEDERATED BID IF TISCH APPROACH WINS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A RIFT HAS OPENED BETWEEN LAURENCE TISCH AND OTHER MEMBERS OF THE RH MACY & CO BOARD THAT MAY THREATEN MACY'S EFFORTS TO REMAIN INDEPENDENT PEOPLE FAMILIAR WITH THE BOARD'S DISCUSSIONS SAY SOME SENIOR CREDITORS ARE THREATENING TO LINE UP BEHIND MACY'S UNWELCOME SUITOR FEDERATED DEPARTMENT STORES INC IF MR TISCH WINS OVER MACY'S BOARD THE MACY BOARD TODAY IS SCHEDULED TO APPROVE AN OUTLINE FOR A REORGANIZATION PLAN AND PRESENT THAT OUTLINE THIS AFTERNOON TO CYRUS R VANCE THE COURTAPPOINTED MEDIATOR THE COMPANY WILL PRESENT THE OUTLINE TO CREDITORS WEDNESDAY AT ISSUE IS THE VALUATION THE COMPANY INTENDS TO PLACE ON ITSELF WHICH WILL BE CRITICAL IN DETERMINING WHO ENDS UP CONTROLLING THE NEW YORKBASED RETAILER MIRED IN CHAPTER 11 BANKRUPTCYCOURT PROCEEDINGS SINCE JANUARY 1992 MR TISCH WHO OWNS SOME JUNIOR MACY SECURITIES IS PUSHING FOR A HIGHER VALUE THAN OTHER BOARD MEMBERS IN THE OPPOSING CAMP ON THE BOARD'S FIVEMEMBER FINANCE COMMITTEE ARE MACY'S CHIEF EXECUTIVE OFFICER MYRON E ULLMAN III AND GARY WENDT CEO OF GE CAPITAL A UNIT OF GENERAL ELECTRIC CO THE ISSUE OF BOND OWNERSHIP BY BOARD MEMBERS COULD BECOME A FOCAL POINT FOR MR VANCE IN MEDIATING THE REORGANIZATION PROCESS SOME CREDITORS BELIEVE ANY INQUIRY WOULD LOOK INTO TRADING BY GE CAPITAL AND OTHER BOARD MEMBERS WHO HAVE OWNED MACY'S BONDS THE VALUATION THAT MACY'S BOARD APPROVES TODAY WILL ESTABLISH HOW MUCH MACY'S CREDITORS WHO ARE OWED 6 BILLION IN ALL WILL RECOVER AND MORE IMPORTANT HOW MUCH STOCK EACH CLASS OF CREDITORS WILL END UP WITH ONCE THE COMPANY EMERGES FROM BANKRUPTCY COURT SENIOR CREDITORS ARE OWED MORE THAN 31 BILLION IN PRINCIPAL AND INTEREST INCLUDING A 11 BILLION CLAIM JOINTLY OWNED BY FEDERATED AND PRUDENTIAL INSURANCE CO OF AMERICA GE CAPITAL IS ALSO A SENIOR CREDITOR NEXT IN LINE ARE PUBLIC BONDHOLDERS INCLUDING MR TISCH OWED MORE THAN 12 BILLION FOLLOWED BY TRADE CREDITORS ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS MR TISCH SURPRISED FELLOW BOARD MEMBERS BY ENDORSING A HIGHERTHANEXPECTED VALUATION OF THE COMPANY FOLLOWING A MARCH 10 PRESENTATION BY REPRESENTATIVES OF THE BONDHOLDERS TO MACY'S FINANCE COMMITTEE OF WHICH HE IS CHAIRMAN MR TISCH DIDN'T RETURN PHONE CALLS REQUESTING COMMENT MR TISCH IS EXPECTED TO ARGUE IN TODAY'S BOARD MEETING FOR A PLAN THAT VALUES MACY AT 38 BILLION THAT FIGURE DIFFERS RADICALLY FROM THE PLAN THAT THE COMPANY'S MANAGEMENT LED BY MR ULLMAN HAS BEEN NEGOTIATING WITH GE CAPITAL AND FIDELITY INVESTMENTS SINCE MIDJANUARY THE MACYGEFIDELITY PLAN WOULD VALUE THE COMPANY AT 35 BILLION MUTUAL FUNDS OF FIDELITY THE BOSTONBASED MUTUAL FUND COMPANY OWNS 490 MILLION OF SENIOR BANK DEBT THE PROSPECT OF A VALUATION ABOVE 35 BILLION HAS ALREADY CAUSED CONSTERNATION AMONG MACY'S SENIOR CREDITORS WHO STAND TO WIND UP WITH A SMALLER STAKE IN MACY IF THE HIGHERVALUE PLAN PREVAILS ONE LAWYER FOR SENIOR CREDITORS SAID HIS CLIENTS WOULD BACK MACY'S SUITOR FEDERATED IN A REORGANIZATION PLAN IF THE BOARD PROPOSES ANY VALUATION ABOVE 35 BILLION IN ADDITION DANIEL HARMETZ THE FIDELITY MUTUALFUND MANAGER WHO IS NEGOTIATING WITH MACY TOLD OTHERS HE WOULD BE ON THE FIRST FLIGHT TO CINCINNATI WHERE FEDERATED IS BASED SHOULD THE VALUATION EXCEED 35 BILLION FIDELITY HAS BEEN WORKING WITH MANAGEMENT FOR THREE MONTHS ON A PLAN OF REORGANIZATION THAT WOULD LEAVE THE COMPANY INDEPENDENT MR HARMETZ SAID IT IS PREMISED ON THE HIGHEND OF VALUATIONS BY MACY'S ADVISERS IF THE BOARD CHOOSES TO IGNORE THOSE VALUATIONS FIDELITY WILL NOT SUPPORT A STANDALONE PLAN UNDER MR TISCH'S 38 BILLION VALUATION PUBLIC BONDHOLDERS WOULD RECEIVE A MOREGENEROUS RECOVERY FOR THEIR CLAIMS AND A FAR GREATER SHARE OF THE COMPANY'S NEW STOCK HOLDERS OF 145 BONDS DUE IN 1998 COULD GET AS MUCH AS 60 CENTS ON THE DOLLAR AND AS MUCH AS 15 OF THE COMPANY'S STOCK UNDER THE JOINT PLAN FAVORED BY MR WENDT AND MR ULLMAN THOSE BONDHOLDERS WOULD RECEIVE ONLY ABOUT 15 CENTS ON THE DOLLAR AND A 5 EQUITY STAKE FIDELITY WOULD END UP WITH AS MUCH AS 40 OF THE COMPANY'S NEW STOCK THE HIGHER VALUATION MR TISCH FAVORS IS AT ODDS WITH RECOMMENDATIONS TO THE BOARD FROM BOTH OF THE COMPANY'S FINANCIAL ADVISERS BLACKSTONE GROUP AND MERRILL LYNCH MERRILL LYNCH WAS HIRED BY THE BOARD FOLLOWING FEDERATED'S APPEARANCE AS A MACY CREDITOR IN JANUARY BOTH ADVISERS HAVE TOLD BOARD MEMBERS THAT THE COMPANY'S VALUE IS BETWEEN 32 BILLION AND 35 BILLION ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE BOARD'S TALKS SOME CREDITORS EXPRESSED CONCERN THAT MR TISCH MAY BE INCLINED TO A MOREGENEROUS VALUATION BECAUSE OF HIS HOLDINGS OF MACY SECURITIES LAST WEEK JOEL ZWEIBEL AN ATTORNEY FOR SOME OF MACY'S SENIOR BANK CREDITORS DEMANDED THAT BOARD MEMBERS DISCLOSE THEIR SECURITIES HOLDINGS IN A LETTER TO MACY'S LAWYER HARVEY MILLER THE REQUEST WAS FORWARDED TO MR VANCE AT SIMPSON THACHER & BARTLETT WHO HAS REQUESTED THIS INFORMATION FROM BOARD MEMBERS THROUGH LOEWS CORP AND ITS INSURANCECOMPANY AFFILIATE CNA MR TISCH CONTROLS ABOUT 52 MILLION OF MACY'S JUNIOR BONDS DUE IN 2001 THOSE BONDS WOULD RECEIVE NOTHING UNDER THE JOINT PLAN WITH GE CAPITAL AND FIDELITY IN ADDITION TO THE BONDS MR TISCH ALSO OWNS A 156 STAKE IN THE COMPANY IN COMMON AND PREFERRED STOCK MUCH OF IT BOUGHT DURING MACY'S ILLFATED RECAPITALIZATION IN 1990 AND 1991 MR TISCH ISN'T THE ONLY BOARD MEMBER WITH A POTENTIAL CONFLICT OF INTEREST GE CAPITAL WHICH BECAME A SUBSTANTIAL SHAREHOLDER IN MACY'S 1986 LEVERAGED BUYOUT AND PARTICIPATED IN THE RECAPITALIZATION IS ALSO OWED 535 MILLION BY MACY IN 1991 GE CAPITAL BOUGHT MACY'S LUCRATIVE CREDITCARD BUSINESS WHICH IT IS TRYING TO SAFEGUARD BY PARTICIPATING IN THE JOINT REORGANIZATION PLAN GE CAPITAL EXECUTIVES DIDN'T RETURN CALLS SEEKING COMMENT PATRICK REILLY CONTRIBUTED TO THIS ARTICLE 9403210113 940321 CLOSED END FUNDS FRIDAY MARCH 18 1994 PROCEEDS IN SECURITIES UNLIKE OPENEND FUNDS CLOSEDENDS GENERALLY DO NOT BUY THEIR SHARES BACK FROM INVESTORS WHO WISH TO CASH IN THEIR HOLDINGS INSTEAD FUND SHARES TRADE ON A STOCK EXCHANGE THE FOLLOWING LIST PROVIDED BY LIPPER ANALYTICAL SERVICES SHOWS THE EXCHANGE WHERE EACH FUND TRADES A AMERICAN C CHICAGO N NYSE O NASDAQ T TORONTO Z DOES NOT TRADE ON AN EXCHANGE THE DATA ALSO INCLUDE THE FUND'S MOST RECENT NET ASSET VALUE ITS CLOSING SHARE PRICE ON THE DAY NAV WAS CALCULATED AND THE PERCENTAGE DIFFERENCE BETWEEN THE MARKET PRICE AND THE NAV OFTEN CALLED THE PREMIUM OR DISCOUNT FOR EQUITY FUNDS THE FINAL COLUMN PROVIDES 52WEEK RETURNS BASED ON MARKET PRICES PLUS DIVIDENDS FOR BOND FUNDS THE FINAL COLUMN SHOWS THE PAST 12 MONTHS' INCOME DISTRIBUTIONS AS A PERCENTAGE OF THE CURRENT MARKET PRICE FOOTNOTES APPEAR AFTER A FUND'S NAME A THE NAV AND MARKET PRICE ARE EX DIVIDEND B THE NAV IS FULLY DILUTED C NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF THURSDAY'S CLOSE D NAV MARKET PRICE AND PREMIUM OR DISCOUNT ARE AS OF WEDNESDAY'S CLOSE E NAV ASSUMES RIGHTS OFFERING IS FULLY SUBSCRIBED V NAV IS CONVERTED AT THE COMMERCIAL RAND RATE Y NAV AND MARKET PRICE ARE IN CANADIAN DOLLARS ALL OTHER FOOTNOTES REFER TO UNUSUAL CIRCUMSTANCES EXPLANATIONS FOR THOSE THAT APPEAR CAN BE FOUND AT THE BOTTOM OF THIS LIST N/A SIGNIFIES THAT THE INFORMATION IS NOT AVAILABLE OR NOT APPLICABLE SINGLE STATE MUNI BOND 1272 JNAV O N 3/11 WAS 1385 9403210112 940321 HICKS MUSE UNIT PLANS PURCHASE DALLAS HICKS MUSE TATE & FURST INC'S HAT BRANDS INC SAID IT SIGNED AN AGREEMENT TO ACQUIRE PRIVATELY HELD TEXACE CORP SAN ANTONIO A MAKER OF GOLF HEADWEAR TERMS WEREN'T DISCLOSED THE PRIVATE INVESTMENT CONCERN SAID TEXACE POSTED SALES OF 15 MILLION IN 1993 HICKS MUSE SAID HAT BRANDS WHICH IT ACQUIRED IN 1992 PROJECTS EARNINGS OF ABOUT 40 MILLION ON SALES OF ABOUT 200 MILLION THIS YEAR INCLUDING TEXACE'S RESULTS 9403210111 940321 AMERICAN EXCHANGE DISCIPLINES THREE MEN NEW YORK THE AMERICAN STOCK EXCHANGE ANNOUNCED THREE DISCIPLINARY ACTIONS FOR VIOLATIONS OF EXCHANGE RULES WAYNE TYRRELL SARASOTA FLA A FORMER EMPLOYEE OF DEAN WITTER DISCOVER & CO'S DEAN WITTER REYNOLDS INC WAS BARRED FOR THREE YEARS WITH TWO YEARS DEEMED SERVED THE EXCHANGE SAID HE RECOMMENDED UNSUITABLE OPTION TRANSACTIONS IN A CUSTOMER ACCOUNT MADE UNSUITABLE SHORTTERM TREASURY BOND TRADES AND CHURNED A CUSTOMER'S ACCOUNT MR TYRRELL SETTLED THE CHARGES WITHOUT ADMITTING OR DENYING THE ALLEGATIONS PETER DWAN SYRACUSE NY A FORMER BRANCHOFFICE MANAGER OF PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA WAS BARRED FOR TWO YEARS FROM ACTING IN ANY SUPERVISORY CAPACITY WITH SIX MONTHS DEEMED SERVED THE EXCHANGE SAID HE FAILED TO SUPERVISE DILIGENTLY THE ACTIVITIES OF TWO BROKERS HE DIDN'T ADMIT OR DENY ALLEGATIONS MATTHEW CHARLTON NEW LONDON NH WAS DISCIPLINED FOR PERMITTING OPTION TRADES TO BE ENTERED FROM OFF THE FLOOR OF THE EXCHANGE INTO HIS REGISTERED OPTIONSTRADER ACCOUNT ENABLING THE TRADES TO RECEIVE FAVORABLE MARGIN TREATMENT HE WAS FINED 3000 MR CHARLTON DIDN'T ADMIT OR DENY ALLEGATIONS 9403210110 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT ESSAY VISIONS OF YESTERDAY THE PATH TO THE DIGITAL FUTURE HAS BEEN PAVED BY STORIES ALREADY TOLD BY FREDERICK ROSE GOING TO THE FEELIES THIS EVENING HENRY INQUIRED THE ASSISTANT PREDESTINATOR I HEAR THE NEW ONE AT THE ALHAMBRA IS FIRSTRATE THERE'S A LOVE SCENE ON A BEARSKIN RUG THEY SAY IT'S MARVELOUS EVERY HAIR OF THE BEAR IS REPRODUCED THE MOST AMAZING TACTUAL EFFECTS WE'RE NOT THERE YET BUT A WORLD OF STRIKING INNOVATION SEEMS THESE DAYS TO BE NOT LURKING AROUND THE CORNER BUT HURTLING TOWARD US IF WE'RE NOT FONDLING BEARSKIN AT THE FEELIES THE FUR INDEED IS FLYING AS BILLIONS OF DOLLARS ARE BEING BET ON A STORY WHOSE OPENING SCENES ARE JUST NOW UNFOLDING WHAT'S THE PLOT HOW WILL IT PLAY OUT PERHAPS IT'S ALL FAR LESS MYSTERIOUS THAN WE THINK WE'VE ALWAYS WANTED TO BE ENTERTAINED AND ENLIGHTENED MAYBE THE PATH TO THE DIGITAL FUTURE HAS BEEN PAVED BY OUR COLLECTIVE MEMORIES OF SNIPPETS FROM STORIES TOLD IN THE PAST LOOKING AT WHAT'S BEEN WRITTEN AND FILMED OVER TIME A MULTIMEDIA/INTERACTIVE/HIGHTECHNOLOGY FUTURE SOMEHOW BECOMES MORE FAMILIAR IF NOT ENTIRELY WELCOME IMAGINE FOR EXAMPLE A DEVICE WITH CRISP PICTURES AND A SMOOTH VOICE IT TALKS TO US GREETS US IN THE MORNING OUR OMNISCIENT COMPANION IS A SOURCE OF INFORMATION ON REQUEST IT PINPOINTS THE LOCATION OF FAMILY MEMBERS IT DEVISES MEETINGS IT EVEN OFFERS UNWELCOME WISDOM TELLING US AT TIMES WHAT WE DON'T WANT TO HEAR IN A TIME BEFORE SILICON CHIPS AND TELEVISION FOLKLORE INVENTED THIS MAGICAL INSTRUMENT SNOW WHITE'S WICKED STEPMOTHER LOOKED TO HER MIRROR ON THE WALL IT KNEW ALL TOLD ALL AS A COMPANION AND PERFECT INTERACTIVE DEVICE AND VIRTUAL REALITY THE ANCIENT GREEKS INVENTED THE SCULPTOR PYGMALION WHO SO LOVED HIS IVORY CREATION GALATEA THAT HE WISHED HER ALIVE A VIRTUAL BRIDE WE'VE SEEN FAR STRANGER DREAMS FULFILLED THE IMPROBABLE ACT OF FLIGHT IS NOW COMMON WHAT'S HOT CAN BE MADE VERY COLD SOUND AND PICTURES CAN BE PROJECTED THROUGH MILLIONS OF MILES OF SPACE THE HISTORY OF MAN IS DREAM AND EXPERIENCE NOTES WRITER RAY BRADBURY FOUR DECADES AGO MR BRADBURY IMAGINED A CHILDREN'S NURSERY ROOM THAT COULD TRANSFORM ITSELF INTO ANY WORLD THE KIDS CHOSE IN MR BRADBURY'S SHORT STORY THE VELDT THE CHILDREN'S MALEVOLENT ANSWER WAS AN AFRICAN PLAIN FULL OF PARENTEATING BEASTS THAT WERE ALL TOO REAL THE LIONS WERE COMING AND AGAIN GEORGE HADLEY WAS FILLED WITH ADMIRATION FOR THE MECHANICAL GENIUS WHO HAD CONCEIVED THIS ROOM A MIRACLE OF EFFICENCY SELLING FOR AN ABSURDLY LOW PRICE EVERY HOME SHOULD HAVE ONE OH OCCASIONALLY THEY FRIGHTENED YOU WITH THEIR CLINICAL ACCURACY MORE BENIGNLY OUR INTERACTIVE IMAGINATION HAS AMUSED US WHEN AWAKE WOODY ALLEN'S SLEEPER GOT AN EYEFUL OF THE YEAR 2173 INCLUDING WHITE CYLINDERS ABOUT THE SHAPE AND SIZE OF BIG WATER HEATERS IN THE ORGASMATRON FRIGID WOMEN MADE VIRTUAL LOVE TO FRIGID MENUNLESS OF COURSE THE MEN WERE ITALIAN WE'VE BEEN INTRODUCED TO INTERACTIVE FRIENDS MOST OF US WOULD HAPPILY AVOID HAL THE OILYVOICED COMPUTER OF THE MOVIE 2001 A SPACE ODYSSEY PLAYS A CHATTY GAME OF CHESS THEN LATER TRIES TO KILL HIS HUMAN OPPONENT AND NOMINAL CONTROLLER IN DR CLARKE'S OWN 1956 NOVEL THE CITY AND THE STARS CITIZENS OF THE EARTHLY CITY DIASPAR RARELY MEET EACH OTHER PHYSICALLY BUT GATHER IN A VIRTUAL SURROUND THEY ACT IN SAGAS EXTRAORDINARILY CONVINCING MAKEBELIEVE GAMES WHERE PARTICIPANTS MAY FIND THEMSELVES ANYWHERE FROM MENTAL MOUNTAINTOPS TO IMAGINARY CAVES IN THE END HOWEVER IT IS A LIFE MORE PERSUASIVE THAN SATISFYING OUR RECURRENT NIGHTMARE IS NOT THAT WE WON'T HAVE ENORMOUS POWER TO INTERACT AT WILL WITH ALMOSTMAGICAL DEVICES BUT THAT THE POWER WILL BE OUR DOWNFALL IN THE MOVIE FORBIDDEN PLANET A RACE OF PEOPLE CALLED THE KRELL LOSE ALL AFFECTION FOR REALITY DEPENDING INSTEAD ON A CURIOUS HEADSET THE ABSURDLY NAMED PLASTIC EDUCATOR AND ON A WORLD WHOSE INNARDS ARE DEVOTED TO EXPANDING UPON THEIR EVERY WHIM AS THE MOVIE'S FRAMES PASS AND A WILLING SUSPENSION OF DISBELIEF FADES AUDIENCE MEMBERS ARE LEFT WITH A REALITY DEFINED BY WALTER PIDGEON ANNE FRANCIS AND LESLIE NIELSEN ACTORS IN A HUMAN SCRIPT BUT BRIEFLY THEY HAVE ACCEPTED THE STORY'S PREMISE WE'RE NOT THERE YET IT STILL TAKES BELIEF TO THINK THAT WE ARE HURTLING TOWARD SOMETHING BUT SOON PERHAPS VERY SOON IT WILL BE THERE EVEN WHEN WE DOUBT IT MR ROSE IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU QUEEN MAGIC MIRROR ON THE WALL WHO IS THE FAIREST ONE OF ALL MIRROR FAMED IS THY BEAUTY MAJESTY BUT HOLD A LOVELY MAID I SEE RAGS CANNOT HIDE HER GENTLE GRACE ALAS SHE IS MORE FAIR THAN THEE DOC WHAT'S THIS PROF MORBIUS ON THIS SCREEN MAY BE PROJECTED THE TOTAL SCIENTIFIC KNOWLEDGE OF THE KRELL FROM ITS PRIMITIVE BEGINNING TO THE DAY OF ITS ANNIHILATION A SHEER BULK SURPASSING MANY MILLION EARTHLY LIBRARIES DOC YOU'RE ABLE TO READ THIS PROF MORBIUS A LITTLE IT'S MY PROFESSION FRANK ROOK TO KING ONE HAL I'M SORRY FRANK I THINK YOU MISSED IT QUEEN TO BISHOP 3 BISHOP TAKES QUEEN KNIGHT TAKES BISHOP MATE FRANK OH IT LOOKS LIKE YOU'RE RIGHT LUNA YOU WANT TO PERFORM SEX WITH ME I JUST THOUGHT YOU MIGHT WANT TO KNOW THAT THEY HAVE A MACHINE HERE MILES MACHINE I'M NOT GETTING INTO THAT THING I DON'T LIKE ANYTHING WITH MOVING PARTS THAT ARE NOT MY OWN DOUG LISTENS TO A VOICE FROM TELEVISION SET IN SUBWAY DO YOU DREAM OF A VACATION AT THE BOTTOM OF AN OCEAN BUT YOU CAN'T FLOAT THE BILL HAVE YOU ALWAYS WANTED TO CLIMB THE MOUNTAINS OF MARS BUT NOW YOU'RE OVER THE HILL THEN COME TO REKALL INC 9403210109 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT WHERE THE MONEY IS VIRTUAL CENTER A BRITISH COMPANY LOOKS TO LEAD THE WAY IN A NEW FORM OF ARCADE ENTERTAINMENT BY JANET GUYON LONDON WITH ENGAGING SMILE CLOSECROPPED HAIR AND SNAPPY DOUBLEBREASTED BUSINESS SUIT JONATHAN D WALDERN DOESN'T SEEM MUCH LIKE A COMPUTER JOCKEY UNTIL THAT IS YOU TALK TO HIM ABOUT ENTERTAINMENT TECHNOLOGY VIRTUALITY GROUP PLC THE ARCADEMACHINE COMPANY HE FOUNDED IN 1987 IS CREATING A WHOLE NEW MEDIUM OF COMMUNICATION SAYS THE 33YEAROLD MANAGING DIRECTOR IN THE NOTTOODISTANT FUTURE HE SAYS PEOPLE MILES APART WILL PLAY TENNIS GOLF AND PERHAPS VIRTUALITY BOXING TOGETHER ON GLOBAL INFORMATION HIGHWAYS IF DR WALDERN HE HAS A PHD IN COMPUTER SCIENCE HAS HIS WAY VIRTUALITY WILL BE IN THE CENTER OF THIS COMMUNICATIONS AND ENTERTAINMENT REVOLUTION THE COMPANY IS ALREADY THE WORLD'S BIGGEST SELLER OF VIRTUAL REALITY ARCADE GAMES WHICH USE SOPHISTICATED COMPUTER POWER WITH VIDEOIMAGE HEADSETS AND JOYSTICKS TO BRING VIDEO GAMES TO A NEW LEVEL OF INTERACTIVITY VIRTUALITY WENT PUBLIC ON THE LONDON STOCK EXCHANGE LAST OCTOBER IN AN OFFERING THAT RAISED JUST UNDER 95 MILLION FROM AN INITIAL PRICE OF 170 PENCE 250 THE SHARES MORE THAN DOUBLED TO 350 PENCE IN THREE MONTHS MOTOROLA INC HAS A 38 STAKE INTERNATIONAL BUSINESS MACHINES CORP A 23 STAKE APAX PARTNERS & CO VENTURES LTD A BIG BRITISH VENTURECAPITAL FIRM OWNS 509 THROUGH TWO PARTNERSHIPS DR WALDERN HAVING SOLD EQUITY TO FINANCE THE STARTUP OWNS ABOUT 8 HE ISN'T EXACTLY THE WILLIAM GATES OF BRITAIN BUT VIRTUALITY'S EMERGENCE IS A RARE EXAMPLE OF PROMISING INNOVATION IN A LANDSCAPE DOMINATED BY BASIC INDUSTRY A YEAR AFTER ITS FOUNDING VIRTUALITY THEN CALLED W INDUSTRIES WON THE BRITISH TECHNOLOGY GROUP'S BEST NEW BUSINESS AWARD IN JANUARY TIM SAINSBURY THE BRITISH MINISTER OF INDUSTRY WAS INTERESTED ENOUGH IN THE COMPANY TO SPEND 20 MINUTES CHATTING WITH DR WALDERN AT THE AMUSEMENT TRADES EXHIBITION INTERNATIONAL ARCADEGAME SHOW WHERE VIRTUALITY UNVEILED ITS SECONDGENERATION GAME MACHINES THE MINISTER DECLINED TO PLAY VIRTUALITY HOPES TO AVOID THE MISTAKES OF OTHER BRITISH ELECTRONICS COMPANIES BY ADOPTING AN INTERNATIONAL VIEW TO BE IN THE HIGHTECH MARKET YOU HAVE TO BE INTERNATIONAL DR WALDERN SAYS THE UK IS LIKE A LITTLE STATE THE COMPANY'S BIGGEST MARKET WILL PROBABLY BE THE US VIRTUALITY OPENED A SALES OFFICE IN ST LOUIS LAST MAY AND 40 OF ITS SALES IN LAST YEAR'S FIRST HALF CAME FROM THE US ABOUT 14 CAME FROM BRITAIN 26 FROM CONTINENTAL EUROPE AND 20 FROM THE FAR EAST AND OTHER COUNTRIES THOUGH COMPANIES LIKE VIRTUALITY AREN'T COMMON HERE DR WALDERN ARGUES THAT BRITAIN IS A GOOD BASE FOR THE IMAGINATIVE INTRICATE SOFTWARE DEMANDED BY VIRTUAL REALITY THERE ARE AN EXCEPTIONAL NUMBER OF PEOPLE WITH COMPUTERSCIENCE DEGREES HE SAYS MANY OF THEM CREATIVE ENOUGH TO MASTER SPECIAL EFFECTS DEMANDED BY HOLLYWOOD IN TRUTH HOWEVER THE VIRTUAL PART OF THESE GAMES IS STILL ONLY A CRUDE APPROXIMATION OF REALITY VIRTUALITY'S MAIN ACHIEVEMENTS IN ITS SECOND GENERATION WERE TO REDUCE THE COST WHILE INCREASING PERFORMANCE LIGHTEN THE HEADSET TO LESS THAN 1 1/2 POUNDS FROM MORE THAN SIX POUNDS AND REDUCE THE 1 1/2FOOT CUBE OF ELECTRONICS RUNNING THE MACHINES TO FOUR PERSONALCOMPUTER BOARDS MOUNTED WITH CUSTOM CHIPS FOUR MACHINES NOW COST AN ARCADE OWNER 17950 26000 ONETHIRD THE 1992 PRICE A PLAYER LOOKS INTO THE GAME THROUGH DISPLAYS RIGHT BEFORE HIS EYES IN THE VISORLIKE HEADSET HE CAN SEE 360 DEGREES BY TURNING HIS HEAD A JOYSTICK SHOOTS INVADERS AND CONTROLS THE SPEED AT WHICH A PLAYER MOVES BUT THE GRAPHICS ARE CARTOONLIKE TWODIMENSIONAL FIGURES VIRTUAL REALITY IS STILL A LONG WAY FROM THE STAR TREK VIRTUAL VACATION MACHINE INTO WHICH TREKKIES STEPPED TO ESCAPE THE PRESSURES OF COLD HARD SPACE TRAVEL STILL DR WALDERN SAYS VIRTUALITY HAS SOLD 450 MACHINES WORLDWIDE COMPARED WITH 25 SOLD BY ITS NEAREST COMPETITOR THE GOAL IS TO HAVE A BIG INSTALLED BASE SO THE COMPANY CAN SELL ADDON SOFTWARE THE MACHINES ARE REPROGRAMMABLE DR WALDERN SAYS SEGA ENTERPRISES LTD OF JAPAN AND AN UNDERSEA EXPERIENCE FOR MATSUSHITA ELECTRIC INDUSTRIAL CO'S PLANNED UNIVERSAL STUDIOS THEME PARK IN JAPAN AND DR WALDERN SAYS HE IS TALKING WITH TELEPHONE AND CABLETV COMPANIES ABOUT HOW TO DEVELOP THE COMPANY'S TECHNOLOGY AND DISTRIBUTE IT THAT COULD HELP HIM ACHIEVE HIS EVENTUAL GOAL OF SELLING VIRTUALITY GAME SOFTWARE FOR HOME USE THAT'S HOW NINTENDO CO GREW SO BIG HE NOTES ARCADES LEAD THE CONSUMER BY TWO YEARS HE SAYS IT'S AN AMBITIOUS PLAN BUT VIRTUALITY HAS A GOOD TRACK RECORD DR WALDERN FOUNDED THE COMPANY WITH THREE OTHER COMPUTER ENGINEERS AFTER EARNING HIS DOCTORATE IN 1985 BY BUILDING AN INTERACTIVE WORKSTATION TO DESIGN CARS NO ONE WOULD GIVE HIM MONEY TO START A COMPANY SO HE BORROWED 10000 FROM HIS FAMILY FOR THE FIRST PROTOTYPE FIGURING THAT ARCADE GAMES REPRESENTED BOTH THE BEST AND MOST DEMANDING MARKET HE TOOK A YEAR TO WRITE A BUSINESS PLAN AND THEN RAISED 750000 BY SELLING EQUITY IN THE COMPANY IN 1989 ONCE VIRTUALITY BEGAN SELLING MACHINES IT HAD POSITIVE CASH FLOW IN FOUR MONTHS HE SAYS IN 1992 THE COMPANY HAD ITS FIRST PRETAX PROFIT OF 217000 ON REVENUE OF 525 MILLION BECAUSE OF THE COSTS OF DEVELOPING AND INTRODUCING THE SECOND GENERATION VIRTUALITY EXPECTS TO POST A 1993 LOSS OF AS MUCH AS 400000 BUT WE DID THE SECOND GENERATION ON TIME AND ON BUDGET DR WALDERN SAYS TWO TO THREE YEARS FROM NOW VIRTUALITY WILL HAVE ITS THIRDGENERATION MACHINES ONE DAY DR WALDERN SAYS VIRTUALREALITY TECHNOLOGY WILL MOVE FROM THE WORLD OF ENTERTAINMENT TO BE USED IN DESIGNING CARS AND HOUSES AND IN DETERMINING HOW TO OPERATE ON PATIENTS BUT FIRST THERE'S MONEY TO BE MADE IN VIDEO GAMES YOU CAN'T GET TO YOUR DREAM IMMEDIATELY HE SAYS YOU'VE GOT TO EARN IT MS GUYON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LONDON BUREAU 9403210108 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT ALTERED STATES TURNING VIEWERS INTO BUYERS BY PATRICK M REILLY BY TRIAL AND ERROR ELECTRONIC RETAILERS ARE STARTING TO HONE THE TRICKS OF THEIR TRADE HERE ARE A FEW OF THE WAYS THEY TRY TO NAB VIEWERS TAKE A TIP FROM SPIELBERG TYEE PRODUCTIONS INC OF PORTLAND ORE MAKES INFOMERCIALS LIKE MINIMOVIES IT SHOOTS IN FILM RATHER THAN VIDEOTAPE BECAUSE FILM MAKES ANYTHING SEEM HIGHQUALITY AND IT USES LIGHTING TO DRAMATIC EFFECT THE RESULT LOOKS MORE LIKE A HOLLYWOOD PRODUCT THAN A STUDIO DEMONSTRATION SHOW RECREATE A FANTASY STORE STATIC INSTUDIO DISPLAYS OF PRODUCTS ON VELVET PEDESTALS WILL BE REPLACED BY SETS WITH THE AMBIANCE OF STORES AND BOUTIQUE RH MACY & CO'S TV MACY'S HOMESHOPPING CHANNEL DUE TO START THIS FALL WILL HAVE SETS REPLICATING THE RETAILER'S ACTUAL SHOPS AND DEPARTMENTS WE WANT TO BRING THE STORE INTO PEOPLE'S LIVING ROOMS A SPOKESWOMAN SAYS GET OUT OF THE STUDIO CATALOG 1 A TIME WARNER INCSPIEGEL INC JOINT VENTURE BEING LAUNCHED THIS MONTH IN A FEW MARKETS PLANS TO LEAVE THE STUDIO WHENEVER POSSIBLE WHEN SELLING DESIGNER SWIMSUITS CATALOG 1 MAY GO TO HAWAII THAT SHOULD LEAD TO ANOTHER TREND LESS ONAIR TIME LIVE IN HOMESHOPPING STUDIOS AND MORE VIDEOTAPE WHICH PRODUCERS CAN USE FOR MOREELABORATE PRODUCTION EFFECTS GET A CELEBRITY NOTHING SELLS BETTER THAN A FAMILIAR FACE OR SO THE REASONING GOES JOAN RIVERS SOLD MILLIONS OF DOLLARS IN JEWELRY AND CLOTHING ON QVC AND SHE'S A NATURAL FOR THE SYNDICATED CHATANDSHOPPING HOUR CAN WE SHOP STARRING JOAN RIVERS WHICH BEGAN AIRING IN JANUARY EXPECT MORE CELEBRITIES AS HOLLYWOOD TALENT AGENCIES FORM INFOMERCIAL DIVISIONS DON'T GET A CELEBRITY THEY CAN BACKFIRE OR JUST FIZZLE INFOMERCIALS FROM BURT REYNOLDS VANNA WHITE JOAN COLLINS AND FAY DUNAWAY FLOPPED IN TEST MARKETS RECENTLY ACCORDING TO JORDAN WHITNEY INC A TUSTIN CALIF FIRM THAT TRACKS INFOMERCIALS REVLON INC HAD TO RETOOL AN INFOMERCIAL FOR ITS LINE OF DOLLY PARTON COSMETICS TO DO MORE THAN RELY ON THE SINGER'S STAR POWER SHORTER IS BETTER WHEN FULLY INTERACTIVE NETWORKS ARRIVE THE TYPICAL HALFHOUR INFOMERCIAL OR SELLING PROGRAM WILL DISAPPEAR AS VIEWERS SURF THROUGH MYRIAD SHOPPING OPTIONS NOW THEIR LENGTH IS DETERMINED BY THE 30MINUTE AND ONEHOUR TIME SLOTS THAT DIVIDE THE VIEWING DAY SAYS MICHAEL SEYMOUR THE MANAGING DIRECTOR OF HUDSON STREET PARTNERS A NEW YORK MAKER OF INFOMERCIALS BUT ON INTERACTIVE SYSTEMS THEY WILL BE REPLACED BY SHORT 10TO 15MINUTELONG SHOWS HE SAYS 9403210107 940321 MANAGER'S JOURNAL FOCUSING ALL EYES ON THE BOTTOM LINE BY WILLARD I ZANGWILL WHAT IF EVERY EMPLOYEE IN A COMPANY NOT JUST A FEW EXECUTIVES MADE DECISIONS WITH THE GOAL OF IMPROVING THE BOTTOM LINE WITH VIRTUALLY ALL EMPLOYEES FOCUSING ON THE ISSUE MOST CRUCIAL TO SUCCESS THAT COMPANY LIKELY WOULD BE UNSTOPPABLE TO TARGET EMPLOYEES' FULL ATTENTION ON THE BOTTOM LINE A FEW COMPANIES HAVE PIONEERED AN APPROACH THAT HAS MADE PROFITS ZOOM BOTTOM LINE POWERED MANAGEMENT BLPM IS NOT LIKE THE TRADITIONAL TECHNIQUES OF OPEN BOOK MANAGEMENT PROFITSHARING OR GAINSHARING THESE TECHNIQUES FLIRT WITH FOCUSING EMPLOYEES' ATTENTION ON THE BOTTOM LINE BUT NEVER REALLY CLUTCH AND EMBRACE IT BLPM IN CONTRAST COMMENCES WITH EDUCATING WORKERS AT THE MOST BASIC LEVEL AND FOLLOWS THROUGH WITH MECHANISMS TO ENSURE THAT EMPLOYEES WILL REMAIN CONSTANTLY AWARE OF THE IMPACT THAT THEIR WORK HAS ON THE BOTTOM LINE JACK STACK PRESIDENT OF SRC A CLOSELY HELD SPRINGFIELD MOBASED MANUFACTURING COMPANY IS AN ORIGINATOR OF THIS APPROACH WHEN AN EMPLOYEE JOINS THIS FIRM SAYS MR STACK WE MAKE CLEAR THAT HIS OR HER JOB IS NOT TO TURN METAL OR ANSWER THE PHONE IT IS TO CREATE ROI RETURN ON INVESTMENT AND BOOST PROFITS TO KEEP WORKERS FOCUSED ON THE BOTTOM LINE EMPLOYEES HERE MAKE DECISIONS ON THE FINANCIALS JUST LIKE THE CEO MIGHT AND WE TRAIN THEM HOW TO DO THAT ACCORDING TO MR STACK FOR MORE THAN A DECADE SRC HAS HAD PROFIT AND SALES GROWTH OF ABOUT 20 ANNUALLY AND MR STACK CREDITS MUCH OF THIS GROWTH TO ITS USE OF BLPM WHEN EVERYONE REALIZES HIS JOB IS TO BOOST THE BOTTOM LINE NEW POSSIBILITIES AND OPPORTUNITIES OPEN UP EMMA LOU BRENT PRESIDENT OF PHELPS BANK AND AN ADVOCATE OF THIS APPROACH STATES BEFORE WE HAD A FEW EMPLOYEES AS SALESPEOPLE NOW EVERY EMPLOYEE IS A SALESPERSON THE EMPLOYEES ARE CONTINUALLY SUGGESTING AND IMPLEMENTING IDEAS THE BANK'S EMPLOYEES EVEN SET THEIR OWN GOALS BUT THEY OFTEN SET THEM TOO HIGH SO I HAVE TO SUGGEST CUTTING THEM BACK FOR MANAGERS AND LINE WORKERS TO BE SIMILARLY FOCUSED ON BOTTOMLINE ISSUES IT'S CRITICAL THAT ALL EMPLOYEES ARE FIRST WELL TRAINED IN UNDERSTANDING THE FINANCIALS CONCERNS LIKE CAPITAL CONNECTIONS A KANSAS CITY CONSULTING FIRM HAVE DEVELOPED CLEVER HEAVILY ILLUSTRATED BOOKS TO DO THAT WHILE ALLSTATE INSURANCE USES AN INTERACTIVE COMPUTER PROGRAM FOR THE TRAINING THE MERE FACT THAT EMPLOYEES CAN BE TRAINED IN THE FINANCIALS IS ITSELF NOTEWORTHY SINCE SOME PEOPLE BELIEVE THE AVERAGE EMPLOYEE CANNOT COMPREHEND THE COMPLEX DATA OF FINANCE SUCH AS OVERHEAD AND DEPRECIATION REFUTING THIS IS THE EXPERIENCE AT SRC PHELPS BANK ALLSTATE CHESAPEAKE PACKAGING IN BALTIMORE AND MANY OTHER COMPANIES SRC'S MR STACK SAYS MOST EMPLOYEES ARE WELL VERSED IN BASEBALL OR BASKETBALL STATISTICS THEY KNOW THE TOP PLAYERS AND TEAMS AS WELL AS THEIR PERCENTAGES SO WHY SHOULDN'T THEY UNDERSTAND THE FINANCIALS THE INITIAL TRAINING IN THE FINANCIALS SHOULD BE CONSTANTLY REINFORCED MEGAVOLT A DIVISION OF SRC HOLDS A WEEKLY LUNCH PIZZA AND SOFT DRINKS SUPPLIED BY THE FIRM AT WHICH THE FINANCIAL DATA ARE GIVEN TO THE EMPLOYEES AT THE END OF THE MEETING THE MEETING CHAIRMAN HOLDS A CONTEST HE CALLS OUT A QUESTION ABOUT THE FINANCIALS AND THE FIRST PERSON TO ANSWER IT CORRECTLY GETS 10 FOR INSTANCE HE MIGHT ASK WHAT WAS THE OVERHEAD ABSORPTION RATE FOR LAST WEEK OR WHAT WAS THE LABOR COST THE EMPLOYEES FURIOUSLY SEARCH THROUGH THEIR NOTES EVERYONE IS GIVEN A LOOSELEAF NOTEBOOK MAKE SOME CALCULATIONS AND RACE FOR THE PRIZE WHILE TRAINING IS IMPORTANT WHAT MAKES BLPM SO POWERFUL IS THAT FINANCIAL AND PERFORMANCE DATA ARE PRESENTED TO EMPLOYEES TO BE USED AS DIRECT PRACTICAL FEEDBACK FOR OPERATIONS AT SRC FOR EXAMPLE FINANCIAL AND PERFORMANCE DATA BECOME CRITICAL TO INDIVIDUAL PERFORMANCE WHEN THE PROFITANDLOSS STATEMENT IS BROKEN DOWN FOR ALL OPERATIONS THAT IS FOR ALL EMPLOYEE TEAMS AND WORK GROUPS EACH EMPLOYEE TEAM THEN KNOWS IF IT IS ON TARGET AND CAN MAKE THE APPROPRIATE CORRECTIONS IF SALES TO A PARTICULAR CUSTOMER ARE OFF TRACK THAT IS IMMEDIATELY INVESTIGATED IF THE TEAM'S OVERHEAD IS ABOVE THE PROJECTION THAT IS ATTACKED MOREOVER THIS INFORMATION IS PROVIDED WEEKLY LETTING THE EMPLOYEES QUICKLY POUNCE ON ANY PROBLEM AS BURGESS OLIVER OF NORTHERN TELECOM A NASHVILLEBASED REMANUFACTURER OF TELEPHONE EQUIPMENT STATED WE STARTED LOSING 5 ON A PRODUCT AND WHEN THE TEAM LEARNED THAT THEY CUT 10 OFF ITS COST TO ENSURE THAT FINANCIAL DATA ARE ACTUALLY USED THE TRADITIONAL COST ACCOUNTING NUMBERS ARE THROWN OUT SINCE THEY ARE DESIGNED TO BE MEANINGFUL ONLY TO OUTSIDE INVESTORS THEY ARE REPLACED BY NUMBERS THE EMPLOYEES CAN INFLUENCE FOR INSTANCE THE TEAMS ARE GIVEN THE AMOUNT OF LABOR HOURS THEY EXPENDED VS THE AMOUNT PROJECTED SIMILAR DATA ARE PROVIDED FOR SCRAP OVERHEAD ABSORPTION AND SO ON OF COURSE IF EMPLOYEES ARE TO BE INTERESTED IN THE BOTTOM LINE IT HELPS TO REWARD THEM IN BOTTOMLINE FINANCIAL TERMS FOR EXAMPLE SRC USES AN EMPLOYEE STOCK OWNERSHIP PLAN AND ALSO SHARES PROFITS WITH THE EMPLOYEES AFTER THE CORPORATION HITS A CERTAIN TRIGGERLEVEL OF PROFITS AN HOURLY WORKER CAN BOOST HIS EARNINGS 13 THIS WAY AT CORNING THEY PREFER TO PAY AN EMPLOYEE BASED ON THE POINTS HE EARNS POINTS ARE ACCRUED FOR COST IMPROVEMENTS QUALITY IMPROVEMENTS ACHIEVING CUSTOMER SATISFACTION AND REACHING CORPORATE ROI GOALS UNDER THIS SYSTEM THE AVERAGE HOURLY WORKER CAN EARN AN ADDITIONAL 10 OF BASE PLUS OVERTIME EARNINGS WHILE ALL TRADITIONAL GAIN OR PROFITSHARING TECHNIQUES PROVIDE SOME BOTTOMLINE FINANCIAL INCENTIVES FOR EMPLOYEES RARELY DO THEY EDUCATE THEM IN UNDERSTANDING THE FINANCIALS ALMOST ENSURING THAT THE EMPLOYEES WILL NOT COMPREHEND HOW THEIR EFFORTS CAN IMPROVE THE BOTTOM LINE SECOND THE FINANCIAL COST AND PERFORMANCE DATA ARE GENERALLY NOT BROKEN DOWN TO THE TEAM LEVEL SO THE TEAM CANNOT SEE HOW IT INFLUENCES THE BOTTOM LINE FURTHER WHATEVER INFORMATION THEY ARE GIVEN USUALLY ARRIVES TOO LATE TO GUIDE THE EMPLOYEES IN THEIR EFFORTS TO IMPROVE WHAT THEY ARE DOING THE BIGGEST DIFFERENCE BETWEEN THE TRADITIONAL EFFORTS AND BLPM LIES IN THE RESULTS IN FIRM AFTER FIRM WHERE BLPM HAS BEEN FULLY IMPLEMENTED THE BOTTOM LINE HAS SKYROCKETED MR ZANGWILL IS A PROFESSOR AT THE GRADUATE SCHOOL OF BUSINESS UNIVERSITY OF CHICAGO AND AUTHOR OF LIGHTNING STRATEGIES FOR INNOVATION LEXINGTON 1993 9403210105 940321 THE OUTLOOK OIL PRICES MAY STAY LOW FOR SOME TIME BY JAMES TANNER HOUSTON CHEAP OIL MAY BE HERE TO STAY AT LEAST FOR THE FORESEEABLE FUTURE EVIDENCE SUGGESTS A FUNDAMENTAL SHIFT DOWNWARD IS TAKING PLACE IN CRUDE OIL'S PRICING STRUCTURE LOCKING IN THE PAST YEAR'S DROP OF 5 A BARREL AS A RESULT CRUDE OIL PRICES RECENTLY AROUND 15 A BARREL COULD BE STUCK ON A LOWER PLATEAU FOR YEARS THE OIL MARKET IS GOING TO BE UNDER PRESSURE FOR AN INDEFINITE PERIOD OF TIME SAYS LAWRENCE GOLDSTEIN PRESIDENT OF THE PETROLEUM INDUSTRY RESEARCH FOUNDATION THE OIL MINISTERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES COULD OF COURSE SURPRISE THE OIL MARKET AT THEIR MEETING THAT BEGINS FRIDAY IN GENEVA BUT THE BETTING IN THE INDUSTRY IS THAT A FRACTIOUS OPEC IS UNLIKELY TO BE ABLE TO AGREE TO SLASH PRODUCTION ENOUGH TO RESCUE PRICES FROM NEAR FIVEYEAR LOWS OR EVEN TO KEEP THEM FROM FALLING FURTHER AMID THE SECOND QUARTER'S SEASONALLY WEAK DEMAND THE OIL MINISTERS HAVE MUCH LESS CONTROL OVER OIL PRICES THAN THEY USED TO TODAY CRUDE VALUES ARE BASED MORE ON ECONOMICS THAN POLITICS AND PRICES ARE SET ON THE FUTURES EXCHANGES IN NEW YORK AND LONDON RATHER THAN IN THE PETROLEUM MINISTRIES OF RIYADH AND TEHRAN OPEC HAS SURRENDERED THE DRIVER'S SEAT TO MARKET FORCES SAYS JOSEPH STANISLAW MANAGING DIRECTOR OF CAMBRIDGE ENERGY RESEARCH ASSOCIATES IN THE MARKETPLACE OIL TRADERS AND BUYERS PERCEIVE A WORLD AWASH IN CRUDE SUPPLY WORRIES SUCH AS THE RUNNING OUT OF OIL PANIC OF THE 1970S HAVE FADED AWAY FOR NOW FEREIDUN FESHARAKI DIRECTOR OF THE RESOURCES PROGRAM AT HONOLULU'S EASTWEST CENTER CITES ABSENCE OF THIS FEAR FACTOR AS THE CHIEF REASON OIL PRICES ARE EXPECTED TO REMAIN LOW PETROLEUM IS INDEED PLENTIFUL THE WORLD'S PROVEN RESERVES HAVE NEARLY DOUBLED SINCE THE FIRST OIL CRISIS OF THE 1970S TO ONE TRILLION BARRELS OIL MAY NOT BE RENEWABLE BUT THROUGH BETTER EXPLORATION AND DEVELOPMENT IT IS INCREASINGLY ABUNDANT THE AMERICAN PETROLEUM INSTITUTE SAYS NEW TECHNOLOGY IS HELPING TO CHANGE THE OIL PICTURE BY REDUCING PRODUCTION AND FINDING COSTS COMPANIES NOW CAN DEVELOP NEW FIELDS FORMERLY CONSIDERED MARGINALLY ECONOMIC IN SOCALLED MATURE OIL PROVINCES SUCH AS THE NORTH SEA ALSO OIL COMPANIES ARE BEING WELCOMED IN REGIONS OF MAJOR PROMISE THAT PREVIOUSLY WERE CLOSED TO THEM ONE EXAMPLE IS RUSSIA ALTHOUGH ECONOMIC AND POLITICAL CHAOS IS DELAYING THE OIL PAYOFF THERE STILL OIL OUTPUT IS RISING ELSEWHERE BY MORE THAN ENOUGH TO OFFSET THE DECLINES IN RUSSIA AND THE US SAUDI ARABIA THE WORLD'S LEADING OIL PRODUCER WITH OUTPUT OF EIGHT MILLION BARRELS A DAY IS EXPANDING CAPACITY TO 10 MILLION A DAY EXCEPT FOR SAUDI ARABIA OPEC MEMBERS ARE PRODUCING FLAT OUT TO TRY TO MAKE UP IN VOLUME WHAT THEY ARE LOSING IN DEPRESSED PRICES MEANWHILE SADDAM HUSSEIN OF IRAQ WAITS IN THE WINGS READY TO TRY TO FLOOD THE MARKET WITH HIS OIL AS SOON AS THE UNITED NATIONS LIFTS THE BAN AGAINST IRAQI EXPORTS IRAQI OFFICIALS WERE IN NEW YORK LAST WEEK TO PRESS ANEW FOR REMOVAL OF THE EMBARGO EVEN AS ODDS OF A SUPPLY DISRUPTION EASE OILCONSUMING NATIONS CONTINUE TO STOCKPILE FUELS AGAINST JUST SUCH AN EMERGENCY NOTING THAT NO ONE EXPECTED THE OIL CRISES OF THE 1970S EITHER ACCORDING TO THE INTERNATIONAL ENERGY AGENCY GOVERNMENT STOCKPILES TOTALED 1485 MILLION TONS AT THE END OF JANUARY UP 41 MILLION TONS FROM A YEAR EARLIER AND EQUAL TO A 15DAY CUSHION FOR THE ENTIRE WORLD IF ALL OIL OUTPUT SUDDENLY CEASED A YEAR AGO THE US BENCHMARK CRUDE WEST TEXAS INTERMEDIATE OR WTI WAS 20 A BARREL AND WAS EXPECTED TO GO HIGHER BUT THAT WAS BEFORE AN OIL GLUT PUSHED PRICES INTO A FREE FALL NOW CONTINUING PESSIMISM OVER THE PRICE OUTLOOK IS TRIGGERING YETANOTHER ROUND OF RESTRUCTURINGS LAYOFFS AND OTHER COST CUTTING BY THE OIL COMPANIES WTI RECENTLY HAS BEEN TRADING NEAR THE 15 THAT IS BECOMING THE INDUSTRY'S YARDSTICK FOR MEASURING FEASIBILITY OF NEW OIL PROJECTS EVEN THOSE REQUIRING YEARS TO COMPLETE TO SELECT PROJECTS UNOCAL CORP ASSUMES 15 OIL THIS YEAR 16 NEXT YEAR AND 17 FOR 1996 SAYS JOHN F IMLE JR EXECUTIVE VICE PRESIDENT THE PETROLEUM INDUSTRY RESEARCH FOUNDATION DOESN'T EXPECT WTI TO REGAIN ITS FORMER PRICE LEVEL EVEN IN NOMINAL TERMS FOR SEVERAL YEARS BY 1997 MR GOLDSTEIN SAYS IT'S POSSIBLE WE WILL SEE A 20 WORLD AGAIN LOWER OIL PRICES HOLD OBVIOUS BENEFITS FOR WESTERN ECONOMIES LAST YEAR'S DROP WAS EQUAL TO A 30 BILLION CUT IN AMERICANS' ANNUAL FUEL COSTS CHEAP OIL ALSO HELPS HOLD DOWN OTHER COSTS KEEPING INFLATION IN CHECK AND IS GOOD FOR THE STOCK MARKET OIL PRICES TODAY ARE THE CHEAPEST IN REAL TERMS SINCE THE ARAB OIL EMBARGO THIS MONTH MARKS THE 20TH ANNIVERSARY OF THE END OF THE EMBARGO THAT TRIGGERED THE FIRST OIL CRISIS AND PRICE SURGE OF THE 1970S PRICES PEAKED IN 1981 SINCE THEN EXCEPT FOR BRIEF SPIKES UP DURING THE 199091 PERSIAN GULF CRISIS THEY HAVE DRIFTED LOWER AND LOWER THE NEW WORLD ORDER SEEMS TO HAVE BROUGHT A NEW PRICING ORDER FOR OIL TOO 9403210104 940321 CORPORATE FOCUS SHAKEN BY A SERIES OF BUSINESS SETBACKS CALVIN KLEIN INC IS REDESIGNING ITSELF BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CALVIN KLEIN HAS COME DOWN FROM HIS IVORY TOWER AND NONE TOO SOON I HAD BECOME TOO ISOLATED SAYS MR KLEIN CONCEDING THAT HE LOST TOUCH WITH CONSUMERS BY CLOISTERING HIMSELF IN HIS SHOWROOM HERE WHEN I'M OUT THERE IN THE STORES I LEARN MR KLEIN'S SELFEXAMINATION COMES AFTER A SERIES OF BUSINESS SETBACKS FOR CALVIN KLEIN INC AND A CORPORATE RESCUE IN MAY 1992 WHEN MR KLEIN'S LONGTIME FRIEND ENTERTAINMENT MOGUL DAVID GEFFEN BOUGHT 62 MILLION OF CALVIN KLEIN INC'S JUNKBOND DEBT IN EFFECT LENDING THE COMPANY THE MONEY MR GEFFEN THREW HIMSELF INTO HELPING MR KLEIN REBUILD HIS FASHION HOUSE THE RESULT AFTER SEVERAL YEARS OF SLUGGISH SALES AND OCCASIONAL LOSSES CALVIN KLEIN INC IS TRANSFORMING ITSELF INTO A DESIGN MARKETING AND LICENSING COMPANY HAVING FINALLY CONCEDED THAT OUTSIDE MANUFACTURERS COULD MAKE SOME OF ITS LINES MORE EFFICIENTLY AND PROFITABLY THE COMPANY FOUND BUYERS FOR ITS JEANS AND UNDERWEAR BUSINESSES WHICH WILL NOW BE CONVERTED TO LICENSEES WITH THE PROCEEDS OF THOSE SALES EARMARKED TO RETIRE ITS REMAINING DEBT A 58 MILLION CITIBANK LOAN THE CLOSELY HELD 25YEAROLD COMPANY IS FORECASTING A PROFITABLE 1994 IN THE FUTURE CALVIN KLEIN WILL DERIVE VIRTUALLY ALL ITS INCOME FROM THE ROYALTIES IT COLLECTS FROM LICENSEES IN A SENSE THIS IS A RETURN TO THE PAST WHEN THE COMPANY INTRODUCED ITS JEANS IN THE LATE 1970S IT USED A LICENSEE TO MAKE THEM CALVIN KLEIN FRAGRANCES OBSESSION ETERNITY AND ESCAPE HAVE ALWAYS BEEN SOLD UNDER LICENSE AND NOW THAT THE COMPANY HAS LICENSEES FOR ITS UNDERWEAR AND ONCE AGAIN ITS JEANS IT IS ACTIVELY PURSUING A LICENSING DEAL FOR ITS CK MENSWEAR AND WOMEN'SWEAR DIVISIONS IF AND WHEN BUYERS ARE FOUND ONLY THE WOMEN'S COUTURE COLLECTION WILL REMAIN INHOUSE AS THE ENGINE DRIVING THE LABEL'S IMAGE BY LICENSING ITS BRAND NAME CALVIN KLEIN'S REVENUES WILL FALL BUT SO WILL ITS COSTS AS ITS LICENSEES ASSUME MUCH OF THE BUSINESS'S OVERHEAD LICENSING ALSO PROVIDES A CUSHION AGAINST RISK ROYALTIES ARE BASED ON SALES NOT PROFITS AND AS LONG AS THE BUSINESSES GROW SO DO THE ROYALTIES THE RESTRUCTURING ALLOWS MR KLEIN WHO IS 51 YEARS OLD AND HIS LONGTIME BUSINESS PARTNER BARRY SCHWARTZ ALSO 51 TO FOCUS ON WHAT THEY DO BEST DESIGNING AND MARKETING THE APPAREL THAT OTHERS WILL NOW PRODUCE A HIGH PRIORITY IMPROVING THE CK LOWERPRICED BRIDGE WOMEN'SWEAR COLLECTION LAST FALL MR KLEIN CRITICIZED IT AS TOO YOUNGLOOKING AND LACKING STYLES THAT WOMEN COULD WEAR TO WORK WE'VE GONE THROUGH A DIFFICULT PERIOD CONCEDES THE DESIGNER WHO HAS BEEN DUBBED CALVIN CLEAN BY THE FASHION PRESS FOR HIS SPARE MINIMALIST FASHIONS WE'RE NOT ALL THE WAY THERE YET BUT WE'VE DEVELOPED A REAL LONGTERM STRATEGY TO GROW OUR BUSINESSES ADDS MR SCHWARTZ MANUFACTURING WASN'T OUR FORTE A FEW YEARS AGO THE COMPANY WAS COASTING ON THE SUCCESS OF ITS FRAGRANCES WHILE OTHER DIVISIONS SHOWED HITORMISS RESULTS AND IT WAS APPARENT ON THE BOTTOM LINE IN FISCAL 1990 THE LAST FULL YEAR CALVIN KLEIN RELEASED FINANCIAL RESULTS IT HAD A NET LOSS OF 43 MILLION ON SALES OF 197 MILLION FOR THE FIRST NINE MONTHS OF 1991 NET INCOME WAS 27 MILLION ON SALES OF 1553 MILLION AFTER MR GEFFEN BOUGHT ITS JUNK BONDS CALVIN KLEIN WAS NO LONGER REQUIRED BY THE SECURITIES AND EXCHANGE COMMISSION TO DISCLOSE ITS EARNINGS FOR 1994 MR GEFFEN FORECASTS PROFITS BEFORE INTEREST AND TAXES OF AROUND 40 MILLION HE DOESN'T ESTIMATE THE COMPANY'S NET INCOME BUT IT IS CLEAR THAT THE PROFITS OF CALVIN KLEIN INC THIS YEAR WILL BE SUBSTANTIAL RETAILERS SAY MR KLEIN'S PERSONAL ATTENTION INCLUDING ATTENDING ALLDAY RETAIL MEETINGS AND VISITING STORES OUTSIDE NEW YORK IS PAYING OFF CALVIN KLEIN TODAY IS RIGHT UP THERE ON TOP SAYS PHILIP MILLER CHAIRMAN OF SAKS FIFTH AVENUE THE BIG VALUE THAT HE IS NOW BRINGING TO THE BUSINESS IS HIM BUT MR KLEIN ALSO OWES MUCH TO MR GEFFEN ONE OF THE WEALTHIEST PEOPLE IN HOLLYWOOD MR GEFFEN SOLD HIS GEFFEN RECORDS COMPANY TO MCA INC IN 1990 FOR STOCK VALUED AT 700 MILLION WHEN MCA WAS SOLD TO MATSUSHITA ELECTRIC INDUSTRIAL CO LATER THAT YEAR AFTER MR GEFFEN BAILED OUT CALVIN KLEIN THE COMPANY REPAID HIM THE FOLLOWING YEAR WITH FUNDS BORROWED FROM CITIBANK WHICH WILL BE RETIRED THIS MONTH AT CALVIN KLEIN MR GEFFEN SAYS HE HAS BECOME AN UNOFFICIAL THIRD BOARD MEMBER MR GEFFEN ADDS I SAT THEM DOWN AND HELPED THEM SEE THEIR BUSINESS MORE CLEARLY THEY NEEDED TO RUN IT MORE LIKE A BUSINESS CALVIN KLEIN SOLD ITS CORPORATE JET AND STRENGTHENED ITS MANAGEMENT TEAM IT HIRED A NEW CHIEF FINANCIAL OFFICER RICHARD MARTIN WHO WAS MOST RECENTLY CHAIRMAN OF NATIONAL APPAREL AND RETAIL INDUSTRY SERVICES PRACTICES AT PRICE WATERHOUSE THE ACCOUNTING FIRM USED BY MR GEFFEN WITH HIS POPMUSIC CONNECTIONS MR GEFFEN HELPED THE COMPANY SIGN MARKY MARK THE MUSCULAR RAP SINGER WHO BECAME THE POSTER BOY FOR CALVIN KLEIN UNDERWEAR SPURRING SALES AMONG TEENAGERS MR GEFFEN NEGOTIATED THE RECENT SALE OF KLEIN'S UNDERWEAR DIVISION TO AN APPAREL MAKER WARNACO INC FOR 64 MILLION UNDER THE TERMS OF THE SALE WARNACO WILL PRODUCE THE UNDERWEAR PAYING CALVIN KLEIN A ROYALTY OF ABOUT 5 OF ANNUAL REVENUES IN 1993 THE UNDERWEAR BUSINESS GENERATED WHOLESALE VOLUME OF ABOUT 60 MILLION WARNACO PLANS TO INTRODUCE THE BRAND IN MORE DEPARTMENT STORES IN THE US AND ABROAD AS WELL AS EXPAND THE PRODUCT LINE DESIGNER BRANDS ARE STRONGER THAN EVER AND WE WILL HIT A HOME RUN SAYS WARNACO'S CHAIRMAN AND CHIEF EXECUTIVE LINDA WACHNER CALVIN KLEIN INITIALLY GAINED FAME WITH ITS DESIGNER JEANS WHICH GENERATED SALES AS HIGH AS 240 MILLION IN 1982 WHEN THE BUSINESS WAS OWNED BY PURITAN FASHIONS INC THE JEANS MANUFACTURER THAT WAS CALVIN KLEIN'S LICENSEE BUT AFTER CALVIN KLEIN BOUGHT PURITAN IN 1983 THE COMPANY NEGLECTED JEANS WHICH AT ONE TIME ACCOUNTED FOR 80 OF ITS OVERALL REVENUES AND BY LAST YEAR JEANS SALES HAD SHRUNK TO ABOUT 50 MILLION LAST MONTH NEW YORKBASED RIO SPORTSWEAR INC BOUGHT THE JEANS DIVISION FOR 35 MILLION AND WILL PAY A ROYALTY RANGING FROM 5 TO 10 TO CALVIN KLEIN ARNOLD SIMONE RIO'S PRESIDENT EXPECTS THAT SALES OF CALVIN KLEIN JEANS CAN BE LIFTED QUICKLY RIO WHICH ALREADY PRODUCES 15 MILLION PAIRS OF JEANS A MONTH UNDER LABELS SUCH AS BILL BLASS SAYS MANUFACTURING EFFICIENCIES WILL ENABLE IT TO LOWER PRICES FROM ABOUT 60 A PAIR TO ABOUT 45 MATCHING GAP AND LEVI'S BRANDS THE BEAUTIFUL PART OF KLEIN IS THAT THE COMPANY IS REALLY THE BEST MARKETER IN THE INDUSTRY WITH WONDERFUL SEXY AND SOPHISTICATED ADS MR SIMONE SAYS RIO WILL ALSO LAUNCH A LINE OF CALVIN KLEIN CHILDREN'S JEANS CALVIN KLEIN INC IS COUNTING ON GENERATING MUCH OF ITS FUTURE GROWTH FROM ABROAD IN THE PAST YEAR THE COMPANY HAS OPENED LICENSED CALVIN KLEIN BOUTIQUES IN BARCELONA ST MORITZ AND SINGAPORE AND LAST WEEK CALVIN KLEIN ANNOUNCED THAT IT HAD FORMED A NEW PARTNERSHIP WITH FOUR JAPANESE COMPANIES TO INTENSIFY KLEIN PRESENCE IN JAPAN BY CREATING INSTORE SHOPS AND PRODUCE MORE LICENSED APPAREL IN JAPAN AS FOR CALVIN KLEIN HIMSELF THE DESIGNER IS NOW PREOCCUPIED WITH WHAT HE CALLS A BREAKTHROUGH CONCEPT A UNISEX PERFUME 9403210103 940321 INTERNATIONAL BRIEF SIP SPA ITALIAN TELEPHONE COMPANY POSTS 43 PROFIT RISE FOR '93 ITALY'S DOMESTIC TELEPHONE OPERATOR SOCIETA ITALIANA PER L'ESERCIZIO DELLE TELECOMUNICAZIONI SPA SAID 1993 NET INCOME ROSE 43 TO 6574 BILLION LIRE 3938 MILLION FROM 4606 BILLION LIRE IN 1992 REVENUE ROSE 86 TO 234 TRILLION LIRE FROM 1256 TRILLION LIRE THE COMPANY CALLED ITS RESULTS POSITIVE AND NOTED THEY WERE ACHIEVED IN THE FACE OF A WEAK ECONOMY IN ITALY AND INTERNATIONALLY SIP'S NET INDEBTEDNESS FELL 47 TO 22183 TRILLION LIRE FROM 23283 TRILLION LIRE AT THE END OF 1992 THE FIRST YEAR IN WHICH THE DEBT LEVEL HAS FALLEN AT THE SAME TIME AS REVENUE HAS RISEN SIP SAID 9403210102 940321 ECONOMY GAMBLING TAX TO AID WELFARE IS TO BE URGED CLINTON IS TO GET PROPOSAL TOMORROW FROM GROUP MAPPING REFORM PLAN BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S WELFAREREFORM WORKING GROUP WILL RECOMMEND A GAMBLING TAX AS PART OF A PROPOSAL TO THE PRESIDENT AT A CABINET MEETING TOMORROW THE LEVY A 4 EXCISE TAX ON NET GAMBLING REVENUES EXCEPT STATE LOTTERIES IS EXPECTED TO RAISE 4 BILLION OVER FIVE YEARS WITHHOLDING TAXES ON WINNINGS ALSO WOULD BE INCREASED THE PROPOSED EXCISE TAX ON GAMBLING ESTABLISHMENTS WHICH WOULD TAKE 4 FROM REVENUES AFTER PAYMENT OF WINNINGS AND ALLOTMENTS TO STATE COFFERS IS CERTAIN TO DRAW FIERCE OPPOSITION FROM CASINOS AND INDIAN GROUPS WHICH HAVE EXPANDED THEIR PRESENCE IN CASINO GAMBLING IN RECENT YEARS AND WOULDN'T BE EXEMPT FROM THE TAX CASINOS AND INDIAN GROUPS HAVE STRENGTHENED THEIR POSITION IN WASHINGTON DURING THE PAST YEAR THE GAMBLING PROPOSAL HIGHLIGHTS MR CLINTON'S DIFFICULTY IN FULFILLING HIS MUCHVAUNTED PLEDGE TO END WELFARE AS WE KNOW IT FROM WHICH HE HAS ALREADY HARVESTED SUBSTANTIAL POLITICAL CAPITAL ADVISERS HAVE BEEN DIVIDED FOR WEEKS OVER THE MEASURE WHICH TAKES PRECISELY THE TYPE OF TAXRAISING TACK THE PRESIDENT HAS AVOIDED IN HIS CURRENT BUDGET SOME ADVISERS HAVE ASSERTED THAT THE POLITICAL PAIN OF FLOATING A TAX ISN'T WORTH THE GAIN OF A SOMEWHAT HEFTIER WELFARE PLAN BUT THE PRESIDENT'S WELFARE WORKING GROUP CONSISTING OF WHITE HOUSE ADVISERS AND TOP OFFICIALS FROM LARGE EXECUTIVE BRANCH AGENCIES HAS DETERMINED THAT THE REFORM PLAN DRAFTS OF WHICH ALREADY ARE ELICITING YAWNS ON CAPITOL HILL CAN'T AFFORD ANY MORE SHRINKAGE ALMOST COMPLETED VERSIONS OF THE PLAN CIRCULATING LAST WEEK ENVISIONED SPENDING OF ABOUT 6 BILLION A YEAR IN 1999 WHEN THE PLAN WOULD BE FULLY IMPLEMENTED THAT FIGURE IS AN ALREADY DISCOUNTED PRICE MADE POSSIBLE BY SLOWLY PHASING IN THE PROGRAM OVER FIVE YEARS AND MANDATING REFORMS ONLY FOR THOSE BORN AFTER 1972 EVEN THAT PARED PROGRAM HOWEVER HAD A HUGE PROBLEM MONTHS OF SEARCHING FOR CUTS IN ANTIPOVERTY PROGRAMS TO SATISFY THE PRESIDENT'S PROMISE THAT WELFARE REFORM WOULD BE DEFICIT NEUTRAL GLEANED ONLY 4 BILLION BY 1999 THE PLAN OMITS A KEY FEATURE IN KEEPING WELFARE ROLLS FROM GROWINGCHILD CARE FOR THE WORKING POOR COSTING 2 BILLION A YEAR AT A SATURDAY MEETING WORKING GROUP MEMBERS DECIDED THAT WAS GOING TOO FAR AND BACKED THE GAMBLING TAX WHICH WILL BRING IN ABOUT HALF THE MONEY NEEDED IT WOULD BE ENOUGH FOR A PARED PROGRAM OFFERING CHILD CARE JUST TO WORKING POOR FAMILIES BORN AFTER 1972 THE TARGET GROUP FOR THE REST OF THE PROGRAM MEMBERS OF THE WORKING GROUP SAID THE PRESIDENT COULD SIGN OFF ON A WELFARE PROPOSAL AFTER THIS WEEK'S MEETING AND HAVE A BILL TO CONGRESS SOON THEREAFTER MEANWHILE THE PRESIDENT'S PROPOSAL IS BEING ATTACKED ON CAPITOL HILL AS TOO LITTLE TOO LATE A HOUSE REPUBLICAN PROPOSAL WHICH PRODUCES ABOUT TWICE THE FUNDING OF THE WHITE HOUSE VERSION BY MORE VIGOROUSLY CUTTING CURRENT BENEFITS TO NONCITIZENS HAS RECEIVED SUBSTANTIAL SUPPORT AMONG DEMOCRATS THOUGH IT OFFERS THE CENTRAL FEATURE OF THE CLINTON PLAN A TWOYEAR LIMIT ON WELFARE BENEFITS THE REPUBLICAN PROPOSAL WOULD HAVE A GREATER IMPACT ON THE CURRENT WELFARE POPULATION THAN WOULD THE CLINTON PLAN PUTTING ALMOST TWICE AS MANY RECIPIENTS IN SOME SORT OF JOBTRAINING AND SEARCH PROGRAM BY 1999 A WHITE HOUSE OFFICIAL SPEAKING NOT FOR ATTRIBUTION SAID THAT ANY PROPOSAL THE PRESIDENT SENDS TO CONGRESS WILL CERTAINLY GET PULLED TOWARD THE RIGHT BY MODERATES AND CONSERVATIVES WE'RE EXPECTING THAT 9403210101 940321 NORTHROP'S NEW LOOK TAKEOVER TARGET BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES NORTHROP CORP MADE A LITTLE HISTORY THIS MONTH WHEN IT LAUNCHED AN UNFRIENDLY BID TO ACQUIRE GRUMMAN CORP NOW IT'S NORTHROP THAT LOOKS INCREASINGLY VALUABLE AS A TAKEOVER TARGET SAY WALL STREET ANALYSTS WHO ENVISION TWO WAYS TO WIN WITH THIS STOCK ONE WAY FOR INVESTORS TO PROFIT IS IF SOME COMPANY BUYS NORTHROP BUT EVEN IF NOBODY TRIES TO ACQUIRE THE BIG MAKER OF THE B2 STEALTH BOMBER BULLS SAY ALL THE ATTENTION IS LIKELY TO STIR NEW INVESTOR INTEREST IN NORTHROP'S STRATEGY FOR CASHING OUT OF THE DWINDLING DEFENSE TRADE SPECULATORS OF COURSE HAVE BEEN CLAMBERING IN AND OUT OF NORTHROP SHARES EVER SINCE THE COMPANY'S SURPRISE 60ASHARE OFFER A WEEK AGO FOR GRUMMAN A BETHPAGE NY DEFENSEELECTRONICS COMPANY WITH A STRONG BASE IN NAVYAIRCRAFT ENGINEERING NORTHROP'S OFFER TOPPED A FRIENDLY 55ASHARE GRUMMAN BID BY MARTIN MARIETTA CORP SOME SUGGEST MARTIN MARIETTA A FASTGROWING DEFENSE AND SPACE GIANT COULD ON ITS OWN OR IN LEAGUE WITH OTHER BIG MILITARY CONTRACTORS TRY A TAKEOVER OF NORTHROP MARTIN MARIETTA BETHESDA MD ISN'T TALKING ABOUT ITS PLANS ON THURSDAY AND FRIDAY MORE THAN 18 MILLION NORTHROP SHARES CHANGED HANDS NINE TIMES THE AVERAGE TWODAY VOLUME FOR THE STOCK THE STOCK JUMPED 1 THURSDAY TO CLOSE AT 4475 AFTER NORTHROP CHAIRMAN KENT KRESA NOTED PUBLICLY HE'D CONSIDER OFFERS TO BUY HIS OWN COMPANY BUT FRIDAY THE STOCK FELL BACK 1 AFTER THE COMPANY SAID HE WAS MERELY REFERRING TO HIS FIDUCIARY DUTIES AND DOESN'T REALLY WANT TO SELL OUT NO MATTER NORTHROP LOOKS FOR THE MOMENT TO BE A COMPANY IN PLAY INTEREST IS ON THE RISE AMONG INVESTMENT BANKERS AND COMPETITORS WHO FIGURE IF THERE WAS A TIME TO LOOK AT NORTHROP IT CERTAINLY IS NOW SAYS PAINEWEBBER INC ANALYST JACK MODZELEWSKI INDEED ACCORDING TO ONE EXECUTIVE FAMILIAR WITH THE DEVELOPMENTS OTHER COMPANIES HAVE BEEN IN TOUCH WITH MARTIN MARIETTA TO SUGGEST THAT IF THE COMPANY DECIDES TO GO AFTER NORTHROP KEEP US IN MIND AMONG NORTHROP'S DIVERSE SEGMENTS THERE SEEMS TO BE LITTLE FOR MARTIN MARIETTA TO COVET BEYOND A MODEST BUSINESS MAKING ELECTRONICCOUNTERMEASURE DEVICES THAT ALLOW FIGHTER PILOTS TO JAM ENEMY RADAR BUT ANALYSTS SAY THERE WOULD BE BOOTY APLENTY FOR OTHER BIG PLAYERS IN THE INDUSTRY WHILE THOSE PLAYERS AREN'T TALKING PUBLICLY ABOUT THEIR PLANS NOBODY CAN STOP WALL STREET FROM SPECULATING NORTHROP'S EXPERTISE IN MAKING RADARELUDING PLANES INCLUDING A FRANCHISE MAKING AND SUPPORTING THE B2 WHICH DEFENSEMERGER EXPERTS SAY COULD FETCH 2 BILLION MIGHT HAVE PARTICULAR APPEAL FOR BUYERS SUCH AS MCDONNELL DOUGLAS CORP MCDONNELL ALREADY EMPLOYS NORTHROP TO BUILD 40 OF THE NAVY'S MAINSTAY F/A18 ATTACK JET THE TWO COMPANIES AS RECENTLY REPORTED HAVE TALKED IN THE RECENT PAST OF THEIR MERGER POTENTIAL ALTHOUGH THE IDEA LATER WAS SHELVED BOEING CO FLIRTED BRIEFLY WITH MERGER PROSPECTS IN INFORMAL TALKS WITH MR KRESA EARLY LAST YEAR ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANIES BUT THE NOTION WAS ABANDONED THEY ADD BOEING IS A MAJOR NORTHROP PARTNER ON THE B2 AND STILL SEES ITSELF AS A FUTURE LEADER IN MILITARY AIRPLANES NORTHROP ALSO HOLDS 600 MILLION IN CONTRACTS TO SUPPLY BOEING WITH THE MAIN FUSELAGE BARRELS FOR THE SEATTLE COMPANY'S 747 JUMBO JETLINERS BOEING WITH A LARGE AMOUNT OF IDLE MANUFACTURING CAPACITY AND A DESIRE TO CUT COSTS MAY WANT TO TAKE THAT BUSINESS BACK BOEING ALSO COULD HAVE AN EYE ON NORTHROP'S HALFINTEREST IN TEXASBASED VOUGHT AIRCRAFT CO A BIG BOEING SUPPLIER NORTHROP CAN TAKE OVER THAT COMPANY COMPLETELY FOR 175 MILLION OR SO BY EXERCISING A PURCHASE OPTION WITH PARTNER CARLYLE GROUP BEGINNING IN AUGUST 1995 LOCKHEED CORP ALREADY A STRONGHOLD OF TALENT IN STEALTH TECHNOLOGIES COULD FIND MANY SYNERGIES IN NORTHROP HOLDINGS SO MIGHT ROCKWELL INTERNATIONAL CORP ANALYSTS SAY FOR ALL OF WALL STREET'S INTEREST IN CARVING UP NORTHROP THOUGH IT ISN'T CLEAR THAT MARTIN MARIETTA OR THE OTHERS ARE UP FOR A SERIES OF TAKEOVER BATTLES THAT MIGHT ONLY SERVE TO DRIVE UP CORPORATE DEBT AND DEFENSEGOODS PRICES AND AGITATE CONGRESS MARTIN MARIETTA CHAIRMAN NORMAN AUGUSTINE WHO IS BUSY EARLY THIS WEEK WITH A LONGSCHEDULED MANAGEMENT RETREAT MAY JUST DECIDE TO WALK AWAY FROM A COSTLY UNSEEMLY FIGHT FOR GRUMMAN SOME BELIEVE THE GRUMMAN PREEMINENCE IN DEFENSE ELECTRONICS COULD SERVE MARTIN MARIETTA WELL BUT MR AUGUSTINE AND OTHERS WOULD STILL HAVE THE OPTION OF TRYING TO SWALLOW UP A COMBINED NORTHROP/GRUMMAN A YEAR OR SO FROM NOW NORTHROP HOWEVER WOULD HAVE TIME AND A LEGITIMATE CHANCE TO SHAVE ACQUISITION DEBT AND MAKE THE MOST OF FINANCIAL SYNERGIES IN THE COMBINED COMPANY NORTHROP'S DECISION TO LEAP INTO THE SPOTLIGHT WITH A HOSTILE TAKEOVER BID HAS HIGHLIGHTED NORTHROP'S SHRINKING OUTLOOK FOR LATER IN THE DECADE AND IT HAS RISKED PRESENTING THE COMPANY ITSELF AS PREY BUT THE COMPANY ALSO GETS A NEW AUDIENCE OF INVESTORS A CHANCE TO SHOW OFF STRONG PROFITS AHEAD IN THE NEARER TERM AND HEIGHTENED INTEREST IN ITS POTENTIAL FOR GROWTH THROUGH ACQUISITION THEY CERTAINLY HAVE CALLED ATTENTION TO THEMSELVES SAYS JERRY CANTWELL OF LIONHEART RESEARCH IN NEW YORK HE NOTES THAT REGARDLESS OF THE LONGTERM OUTLOOK FOR NORTHROP THE COMPANY HAS BEEN SHARPLY CUTTING COSTS IS NEARLY DEBTFREE AND SEEMS LIKELY TO SHOW EVERINCREASING EARNINGS DESPITE AT LEAST AN 18 REVENUE DROP OVER FOUR YEARS THE CURRENT STOCK PRICE OF 4375 IS LESS THAN 10 TIMES EXPECTED 1994 EARNINGS OF 465 A SHARE HE SAYS EVEN AT 43 THIS STOCK IS CHEAP IT'S DIFFICULT TO PUT A BREAKUP VALUE ON NORTHROP ANALYSTS SAY PRICES AS HIGH AS 50 TO 60 A SHARE HAVE BEEN BANDIED ABOUT ON THE STREET BY ANALYSTS AND INVESTMENT BANKERS BUT THERE'S MUCH UNCERTAINTY ABOUT HOW TO VALUE TOPSECRET PROGRAMS SUCH AS THE B2 NOT TO MENTION ANY NORTHROP DEFERRED TAX OBLIGATIONS AND THE ISSUE OF WHETHER THE COMPANY MIGHT DO A BIG STOCK BUYBACK IN THE MONTHS OR YEARS AHEAD BUYING GRUMMAN WOULD BOOST NORTHROP REVENUE TO MORE THAN 7 BILLION NEXT YEAR MR CANTWELL IS AMONG THOSE WHO BELIEVE THAT EVEN IF NORTHROP ENDED UP PAYING A HIGHER 65 A SHARE TO WIN GRUMMAN THE COMBINED COMPANIES' EARNINGS COULD HIT 601 IN 1996 AND 720 A SHARE IN 1998 BY THE LATTER YEAR A 100OWNED VOUGHT AIRCRAFT COULD BE CONTRIBUTING 105 A SHARE TO NORTHROP'S ANNUAL EARNINGS UNEXPECTED SETBACKS ALONG THE PATH LIKE FURTHER HARSH CUTS IN DEFENSE SPENDING COULD DAMP SUCH HAPPY EXPECTATIONS FOR NORTHROP EVEN IF IT HASN'T BEEN BROKEN UP AND SOLD OFF BY THEN IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE GRUMMAN CLOSED AT 6475 UP 50 CENTS NORTHROP IS MORE ATTRACTIVE WITHOUT GRUMMAN CONTENDS PAINEWEBBER'S MR MODZELEWSKI ESPECIALLY BECAUSE NORTHROP IS ALREADY BEING JUDGED ON A COMPONENT BASIS FOR BREAKUP VALUE IN THIS ENVIRONMENT HE SAYS LONGTERM HORIZONS MEAN LITTLE TO INVESTORS IN NORTHROP OR OTHER DEFENSE STOCKS VALUES ARE PROJECTED WEEKTOWEEK EVEN DAYTODAY HE ADDS AND WHILE THEY AREN'T YET BEING JUDGED BY THE HOUR WE MAY GET INTO THAT MODE YEAR ENDED DEC 31 1993 FOURTH QUARTER DEC 31 1993 9403210100 940321 LETTERS TO THE EDITOR DECLINING QUANTITY OF QUALITY TIME LIKE MANY AMERICANS TIM W FERGUSON CONFUSES STANDARD OF LIVING WITH QUALITY OF LIFE THE PROGRESS HE DESCRIBES IN HIS COLUMN DAYS OF WHINE AND POSES BUSINESS WORLD MARCH 1 SEEMS TO REFLECT AN INCREASED STANDARD OF LIVING AND NOT A BETTER QUALITY OF LIFE ONE OF THE BEST INDICATORS OF QUALITY LIVING IS THE AMOUNT OF TIME WE ARE ABLE TO SPEND WITH OUR FAMILIES AND FRIENDS ESPECIALLY THE TIME WE SPEND NURTURING OUR CHILDREN IN THEIR FORMATIVE YEARS ALTHOUGH THE BUSINESS CLASS COUPLE HE DESCRIBES MIGHT HAVE A BETTER STANDARD OF LIVING THAN THEIR PARENTS ONE WONDERS IF THEIR QUALITY OF LIVING IS IMPROVED DOES A HIGHER STANDARD OF LIVING RESULT IN A RICHER LIFE ALAS TRUE PROGRESS WILL NOT BE MADE IN MANY ASPECTS OF OUR LIVES UNTIL THE DISTINCTION BETWEEN STANDARD OF LIVING AND QUALITY OF LIVING IS FULLY RECOGNIZED 9403210099 940321 CALIFORNIA RACETRACKS IN TALKS SAN MATEO CALIF BAY MEADOWS OPERATING CO AND CALIFORNIA JOCKEY CLUB SAID THEY WERE HAVING EXPLORATORY TALKS WITH OTHER RACETRACKS REGARDING POSSIBLE COMBINATIONS OF OPERATIONS THEY DIDN'T DISCLOSE OTHER PARTICIPANTS IN THE TALKS AND SAID NO TERMS HAD BEEN DISCUSSED BUT SANTA ANITA OPERATING CO DISCLOSED THURSDAY THAT IT WAS TALKING WITH THE NORTHERN CALIFORNIA RACETRACK OPERATORS CALIFORNIA JOCKEY CLUB IS A REALESTATE INVESTMENT TRUST WHOSE SHARES TRADE AS A SINGLE UNIT WITH THOSE OF BAY MEADOWS WHICH OPERATES A RACETRACK NEAR SAN FRANCISCO 9403210098 940321 TABS TANGLE OVER FOSTER DEATH BY ERICH EICHMAN THE PRODUCERS OF THE PAPER COULDN'T HAVE TIMED IT BETTER JUST AS THEIR MOVIE ABOUT A SCRAPPY BIGCITY TABLOID WAS OPENING LAST WEEK TWO RIVAL TABS IN NEW YORK CITY WENT TO WAR THE SUBJECT THE MYSTERIOUS CIRCUMSTANCES SURROUNDING THE DEATH LAST JULY OF DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER DOUBTS RAISED OVER FOSTER'S SUICIDE' THE NEW YORK POST HAD PROCLAIMED IN ITS OPENING SALVO TWO MONTHS AGO INAUGURATING A SERIES OF INCISIVE REPORTS CASE CLOSED COUNTERED THE DAILY NEWS LAST WEEK WHO'S RIGHT WE MAY NEVER KNOW BUT WE CERTAINLY WON'T BE ABLE TO GRAPPLE WITH CERTAIN CRUCIAL FACTS UNTIL THE JUSTICE DEPARTMENT DEIGNS TO RELEASE THE POLICE REPORT OF HIS DEATH SOMETHING THIS NEWSPAPER HAS BEEN CALLING FOR SINCE LAST SUMMER WHEN WE FILED OUR FIRST FREEDOM OF INFORMATION ACT REQUEST IN THE MEANTIME THE WAR OF THE TABS PROVES THAT THE OLDFASHIONED ART OF ENTERPRISE JOURNALISM ISN'T DEAD AS IN THE EARLY STAGES OF THE WHITEWATER SCANDAL A MATTER THAT TOUCHES ON MR FOSTER THE TABLOIDS UNLIKE MOST OF THE ESTABLISHMENT PRESS HAVE SHOWN A WILLINGNESS TO PUSH HARD ON TROUBLESOME QUESTIONS AND ODD DETAILS BY ASKING TOUGH AND IMPORTANT QUESTIONS ABOUT MR FOSTER'S APPARENT SUICIDE THEY MAY EVENTUALLY FORCE OUT THE TRUTH FOR THE BENEFIT OF READERS OUTSIDE NEW YORK HERE'S WHAT THE TWO PAPERS HAVE BEEN REPORTING CHRISTOPHER RUDDY OF THE POST LED THE WAY SHOWING THE ENTERPRISE TO INTERVIEW THE EMERGENCY PERSONNEL WHO VIEWED MR FOSTER'S BODY IN LATE JANUARY MR RUDDY WAS TOLD BY PARAMEDIC GEORGE GONZALEZ THAT THERE WAS SOMETHING STRANGE ABOUT THE FOSTER DEATH SCENE MR FOSTER'S BODY WAS NEATLY LAID OUT WITH GUN IN HAND AND THERE WAS SURPRISINGLY LITTLE BLOOD A THIN TRICKLE NEAR HIS MOUTH ONE EXPERT TOLD MR RUDDY THAT IN 30 YEARS HE HAD NEVER SEEN SOMEONE SHOOT THEMSELVES IN THE MOUTH AND STILL HOLD THE GUN PERFECTLY AT HIS SIDE ACCORDING TO MR GONZALEZ AND A LAWENFORCEMENT OFFICIAL THE GUN SHOWED NO TRACES OF BLOOD THE PARK MAINTENANCE WORKER WHO FOUND MR FOSTER'S BODY HAD DESCRIBED A HEAVYSET MAN IN A VAN WHO HAD PULLED OVER AND ALERTED HIM TO THE DEAD BODY IN THE PARK MR RUDDY WONDERED UNDERSTANDABLY WHO WAS THE MAN IN THE WHITE UTILITY VAN ALL THIS PROMPTED HIM TO ASK WHY THE FBI HAD BEEN KEPT OUT OF THE INVESTIGATION HE WAS TOLD BY FORMER FBI HEAD WILLIAM SESSIONS WHO ADMITTEDLY HAS HIS OWN AX TO GRIND WITH THE CLINTON WHITE HOUSE THAT A POWER STRUGGLE WITH JUSTICE HAD LEFT THE INVESTIGATION IN THE HANDS OF THE LESS EXPERIENCED PARK POLICE WHO HANDLED OR BUNGLED THE INVESTIGATION BECAME IMPORTANT WHEN MR RUDDY DISCOVERED THE DAY AFTER HIS FIRST ARTICLE APPEARED THAT THE PARK POLICE HAD RULED THE FOSTER DEATH A SUICIDE WITHOUT RUNNING A BALLISTICS TEST ON THE GUN THE POLICE ASKED THE FEDERAL BUREAU OF ALCOHOL TOBACCO AND FIREARMS TO DO A TEST ONLY TWO DAYS AFTER THE OFFICIAL POLICE RULING WAS HANDED DOWN ON AUG 10 BUT NOTHING WAS YET CONCLUSIVE EVEN THE PARK POLICE HAD QUESTIONS AS IT TURNED OUT A FEB 4 WASHINGTON POST REPORT PERHAPS INSPIRED BY MR RUDDY'S HARDHITTING ARTICLES THE WEEK BEFORE CONFIRMED THE BALLISTICSTEST DELAY AND REVEALED THAT THE ATF HAD BEEN ASKED BY THE PARK POLICE TO LOOK FOR POWDER RESIDUE ON MR FOSTER'S CLOTHES AS WELL AND TO COMMENT ON THE POSSIBLE POSITION OF THE GUN AT THE TIME IT WAS FIRED AS IT TURNED OUT THE ATF'S CONCLUSIONS WERE CONSISTENT WITH SUICIDE BUT THE PROCEDURAL CONFUSION LEFT MR RUDDY WONDERING ABOUT THE INTEGRITY OF THE ENTIRE INVESTIGATION HE WAS NOT ALONE IN SUCH MUSINGS SPECIAL COUNSEL ROBERT FISKE HAS ANNOUNCED HIS INTENTION TO REEXAMINE THE ENTIRE FOSTER EPISODE IN SHORT WHAT ELSE WAS THERE TO KNOW AND WHY HAS THE OFFICIAL REPORT INCLUDING PHOTOGRAPHS AUTOPSY RESULTS AND PIECES OF A SUICIDE NOTE NOT BEEN MADE PUBLIC TO CLEAR UP THE MYSTERY AND END THE SPECULATION THE ANSWER TO THAT QUESTION IS STILL INCOMPLETE AND THE LEGAL COMPLEXITY SURROUNDING MR FISKE'S EFFORTS MAY EVEN ADD TO THE DELAY BUT IN LAST MONDAY'S DAILY NEWS MIKE MCALARY MANAGED TO PUSH THE STORY FURTHER TOWARD OPENNESS MR MCALARY GOT A CHANCE TO REVIEW THE PARK POLICE REPORT ONCE IT WAS MADE AVAILABLE WE MAY PRESUME TO COUNTER THE POST'S STORIES AND TALKED TO UNNAMED INVESTIGATORS HIS CONCLUSION VINCENT FOSTER'S DEATH WAS A SIMPLE STORY FROM A POLICE BLOTTER DECIDEDLY NOT SOMETHING THAT WOULD CONFIRM THE RANTING OF SOME CONSPIRACY THEORIST WHOEVER THAT MIGHT BE THE CHIEF FORENSIC INVESTIGATOR AT THE DEATH SCENE FOUND LITTLE BLOOD ON THE FRONT OF MR FOSTER'S BODY BUT THERE WAS PLENTY IN THE BACK WHERE THE BULLET HAD EXITED HIS SKULL MR FOSTER'S RIGHT THUMB WAS STUCK IN THE TRIGGER GUARD MR MCALARY REPORTED ACCOUNTING FOR THE GUN'S STILL RESTING IN HIS HAND WHEN THE BODY WAS DISCOVERED POWDER BURNS WERE FOUND ON MR FOSTER'S PALATE AND TONGUE AND ON HIS RIGHT HAND THE LACK OF DISTURBANCE TO THE DEAD MAN'S BLOOD POOLS SUGGESTED AS ONE INVESTIGATOR SAID THAT MR FOSTER DIED RIGHT ON THE HILL WHERE HE WAS SITTING ALL IN ALL MR MCALARY CONCLUDED THERE WAS NO MYSTERY LEFT TO THIS PART OF THE STORY EVEN THE MAN IN THE WHITE VAN TURNED OUT TO LEAD NOWHERE HE WAS THE INVENTION OF THE PARK WORKER WHO APPARENTLY EMBROIDERED HIS ACCOUNT TO COVER UP A MIDDAY RESPITE MR MCALARY TRIUMPHANTLY ANNOUNCED THAT MR FISKE AND HIS CHIEF FOSTER INVESTIGATOR HAD ACCEPTED THE CONCLUSIONS OF THE PARK POLICE ABOUT VINCENT FOSTER'S DEATH THE POST FIRED BACK ON WEDNESDAY IN AN ARTICLE BY THOMAS FERRARO HE CITED MISTAKES THAT MR MCALARY HAD MADE THE DATE OF THE SUICIDE AND THE FIRST NAME OF MR FISKE'S DEPUTY RODERICK LANKLER MORE IMPORTANT MR LANKLER DENIED TO THE POST THAT HE OR MR FISKE HAD REACHED ANY CONCLUSIONS ABOUT THE FOSTER DEATH FOSTER SUICIDE PROBE STILL WIDE OPEN THE POST TRUMPETED THAT LASTED 24 HOURS UNTIL THE NEWS'S NEXT SALVO THE REAL NEWS ON POST MORTEM QUIPPED THE PAPER'S HEADLINE WRITERS ON THURSDAY ON PAGE TWO THEY DROPPED THE NEWS THAT THE PARK POLICE CONFIRMED THAT THE CASE IS CLOSED BUT IT ISN'T REALLY DESPITE MR MCALARY'S HEROIC EFFORT TO REFUTE MR RUDDY AND DESPITE THE PERSUASIVENESS OF HIS ACCOUNT TOO MUCH REMAINS HIDDEN ABOUT THE ENTIRE FOSTER AFFAIR AFTER ALL THE PARK POLICE REPORT IS STILL LOCKED AWAY AS ARE THE FOSTER OFFICE PAPERS MR MCALARY PRESENTS A VIVID ACCOUNT OF THE SCENE IN MR FOSTER'S OFFICE THE DAY AFTER THE SUICIDE FURIOUS FBI AGENTS AND PARK POLICE OFFICIALS WERE FORCED BY MR NUSSBAUM TO SIT 15 FEET AWAY FROM MR FOSTER'S DESK AS HE RUMMAGED THROUGH PAPERS SAYING REPEATEDLY WE CAN'T SHOW YOU THIS THIS IS PERSONAL THAT SCENE OF COURSE SUGGESTS THE POSSIBILITY THAT SECRET POLITICALLY SENSITIVE TRUTHS LIE BEHIND MR FOSTER'S ACTIONS SUCH A SUGGESTION ALSO EMANATES RIGHTLY OR WRONGLY FROM THE OVERLOOKED SUICIDE NOTE THAT A WHITE HOUSE AIDE FOUND IN MR FOSTER'S BRIEFCASE FIVE DAYS AFTER THE PARK POLICE HAD NOT SEEN IT THERE MR MCALARY INTERESTINGLY REPORTS THAT BECAUSE MR FOSTER CALLED THE FBI LIARS IN HIS NOTE THE PARK POLICE HAD ONE OF THEIR OWN SERGEANTS DO THE HANDWRITING ANALYSIS OBVIOUSLY UNTIL EVERYTHING IS MADE PUBLIC AND PROPERLY EXPLAINED A CLOUD OF DOUBT WILL HOVER OVER THE FOSTER AFFAIR IN THE MEANTIME WE OWE A DEBT OF GRATITUDE TO THE AGGRESSIVE AND CONSEQUENTIAL FACTFINDING MISSIONS OF TOUGH TABLOID REPORTERS MR EICHMAN IS AN ASSISTANT FEATURES EDITOR ON THE JOURNAL'S EDITORIAL PAGE 9403210097 940321 BUSINESS BRIEF IMATRON INC SHARES JUMP 67 ON REPORTS FROM CARDIOLOGISTS' MEETING IMATRON INC SHARES ROSE 67 AFTER THE COMPANY REPORTED THAT SCIENTIFIC PAPERS DESCRIBE HOW AN IMATRON TECHNOLOGY CAN HELP PREDICT HEART DISEASE IMATRON'S ELECTRON BEAM ULTRAFAST CT TECHNOLOGY IS USED TO DETECT CALCIUM BUILDUP IN CORONARY ARTERIES PAPERS PRESENTED AT A MEETING OF CARDIOLOGISTS IN ATLANTA INCLUDED EVIDENCE THAT A HIGH DEGREE OF CALCIFICATION IN PATIENTS WITH NO OTHER KNOWN SYMPTOMS IS ASSOCIATED WITH FUTURE OCCURRENCES OF CORONARY ARTERY DISEASE AND HEART ATTACKS THE SOUTH SAN FRANCISCO CALIF COMPANY'S SHARES CLOSED FRIDAY AT 156 A SHARE UP 63 CENTS ON THE NASDAQ STOCK MARKET 9403210096 940321 CALL IT RETROGRAD LENIN'S BIRTHPLACE CLINGS TO OLD WAYS BAD MEAT AND LONG LINES ARE HAILED GOVERNOR IS A GOD SMILES DAZZLE WITH GOLD BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL ULYANOVSK RUSSIA RUSSIA'S FREEMARKET REFORMS WERE SUPPOSED TO RID THE COUNTRY OF LINES SUBSIDIES RATIONING AND SHODDY PRODUCTS BUT REFORMS MOSTLY HAVE BYPASSED ULYANOVSK LENIN'S VOLGA RIVER BIRTHPLACE AND THAT SUITS THE PROVINCE'S 15 MILLION RESIDENTS JUST FINE WE LOVE THINGS THE WAY THEY ARE SAYS FAINA IVANOVA A SHAPELESS BABUSHKA WHO STANDS IN A WINDING MEAT LINE AT STATE PRODUCE STORE NO 21 AFTER A LONG WAIT SHE WILL GET HER RATION OF MEAT OF POOR QUALITY BUT AT A CHEAP PRICE MANDATED BY THE LOCAL GOVERNMENT WHAT'S SO BAD ABOUT STANDING IN A LINE SHE CHIRPS ULYANOVSK IS 500 MILES AND AN IDEOLOGICAL WORLD AWAY FROM MOSCOW RUSSIA ONE MIGHT SAY IS DRIVING TOWARD MARKET REFORMS ALBEIT WITH SOME HESITATION ABOUT ITS SPEED AND THE MANY POTHOLES IN THE ROAD ULYANOVSK MEANWHILE HASN'T LEFT THE PARKING LOT THE RESULT ULYANOVSK'S PRICES ARE LOWER THAN THOSE ANYWHERE ELSE IN RUSSIA THE PROVINCE'S UNREFORMED COLLECTIVESTYLE FARMS ARE OBLIGED TO SELL ALL THEIR OUTPUT LOCALLY PRIVATE BUSINESSES ARE DISCOURAGED AS ARE EXPENSIVE IMPORTS FROM THE REST OF RUSSIA THE POPULAR LOCAL GOVERNOR YURI GORYACHOV SEES TO IT THAT ULYANOVSK STAYS ITS RETROGRADE COURSE MOSCOW SETS ECONOMIC REFORM GUIDELINES BUT GIVES PROVINCES CONSIDERABLE LEEWAY TO CARRY THEM OUT OR NOT MR GORYACHOV THINKS THE OLD WAYS ARE SUPERIOR AND WHAT HE SAYS GOES HERE LAST DECEMBER THE 55YEAROLD FORMER VETERINARIAN AND LONGTIME COMMUNIST PARTY APPARATCHIK WON ELECTION TO THE UPPER HOUSE OF RUSSIA'S PARLIAMENT IN A SOVIETSTYLE LANDSLIDE TAKING 901 OF THE VOTE EACH DAY I PRAY THAT GOD WILL PROTECT OUR GORYACHOV SAYS LYUDMILLA KHECHIKOVA A MIDDLEAGED SHOPPER AT STATE STORE NO 21 MS IVANOVA ONEUPS HER I'D GO THROUGH FIRE AND WATER FOR HIM SHE SAYS THE ULYANOVSK MIRACLE ONCE WAS DISMISSED AS A BIZARRE ABERRATION IN INCREASINGLY MARKETORIENTED RUSSIA BUT AFTER TWO YEARS OF ECONOMIC REFORMS THAT PRODUCED FEW GAINS FOR MOST OF THE COUNTRY DELEGATIONS FROM OTHER RUSSIAN PROVINCES NOW ARE FLOCKING TO ULYANOVSK TO SEE WHETHER RUSSIA'S PAST IS ALSO ITS FUTURE EVEN RUSSIA'S PRIME MINISTER VIKTOR CHERNOMYRDIN LATE LAST YEAR SENT A TOP AIDE TO SEE IF ULYANOVSK'S CENTRALIZED SYSTEM WOULD BE WORTH COPYING NATIONWIDE ANDREI ILLARIONOV AN ADVOCATE OF RADICAL REFORMS WHO SINCE HAS QUIT GOVERNMENT WAS AMAZED I FELT LIKE A TIME TRAVELER HE SAYS IT WAS LIKE GOING BACK TO THE SOVIET UNION OF FIVE YEARS AGO WHILE MR ILLARIONOV AND OTHERS OF HIS ILK DON'T WANT TO SEE RUSSIA JOURNEY BACK IN TIME THE COMFORTING STASIS OF ULYANOVSK REMAINS AN OPTION TO SOME FRAUGHT PROVINCIAL AND FEDERAL BUREAUCRATS WHO DON'T LIKE THE ALTERNATIVES IT WOULD BE TOUGH TO MAKE THE ULYANOVSK MODEL FLY WITHOUT A CLEVER PATERNALISTIC STRONGMAN LIKE MR GORYACHOV AT THE CONTROLS HOWEVER GOVERNOR SINCE 1990 THE BALDING MR GORYACHOV IS NEARLY AS REVERED THOUGH ON A LOCAL LEVEL AS LENIN WAS IN HIS HEYDAY BUT WHERE LENIN WAS RESPECTED FOR HIS REVOLUTIONARY IDEOLOGY MR GORYACHOV EARNS HIS DEVOTION BY DISPENSING LARGE DOSES OF LARGESS AND PUBLIC RELATIONS HERE IN THE PROUD BIRTHPLACE OF LENIN THERE IS OF COURSE A MUSEUM DEDICATED TO THE FOUNDER OF SOVIET COMMUNISM WHOSE SURNAME AT BIRTH WAS ULYANOV ON THIS DAY THE LENIN MUSEUM LOCATED ON LENIN STREET IN THE CITY'S LENIN DISTRICT IS NEARLY DESERTED SO CURATOR TATIANA BRYLIAEVA HAS TIME TO CHAT NOT ABOUT PAST GLORIES BUT OF A NEW ONE YURI GORYACHOV SHE RECOUNTS AN INCIDENT REPORTED ON LOCAL TELEVISION IN WHICH MR GORYACHOV TRAVELED ON A WINTRY DAY TO A REMOTE PROVINCIAL HOSPITAL THERE HE SAW A DOCTOR DRESSED IN A WARM COAT TENDING A SICK CHILD WHOSE TORSO WAS BARE THE GOVERNOR PUBLICLY BERATED THE DOCTOR AND LOCAL MEDICAL AUTHORITIES FOR ALLOWING THE CHILD TO SHIVER HE TAKES CARE OF OUR NEEDIEST MARVELS MS BRYLIAEVA THOUGH SHE DOESN'T REMEMBER MR GORYACHOV GIVING THE CHILD HIS OWN COAT THE LAPDOG LOCAL PRESS OBLIGINGLY ACCOMPANIES MR GORYACHOV ON HIS FREQUENT FORAYS INTO THE PROVINCE'S VILLAGES IF GORYACHOV PROMISES TO DO SOMETHING HE'LL DO IT EVEN IF IT KILLS HIM SAYS A FAWNING KONSTANTIN AZOV SENIOR CORRESPONDENT OF ULYANOVSK PRAVDA INTUITIVELY GORYACHOV HAS MASTERED THE TECHNIQUES OF THE PERSONALITY CULT SAYS ALLA BAGDASAROVA EDITOR OF THE LONE OPPOSITION PAPER SIMBIRSKY COURIER MR GORYACHOV DECLINES TO MEET FOREIGN JOURNALISTS BUT PERSONAL MYSTIQUE GOES JUST SO FAR WHAT MOST MAKES MR GORYACHOV A LOCAL HERO IS HIS DEFT HANDLING OF THE PURSE STRINGS HE WORKS HIS FISCAL MAGIC THROUGH A MYSTERIOUS OFFBUDGET STABILIZATION FUND HE CREATED IN 1992 NO ONE SEEMS ABLE OR WILLING TO EXPLAIN ITS EXACT SIZE OR SOURCE THOUGH IT'S KNOWN TO BE FUNDED PARTLY BY A SPECIAL PROFITS TAX LEVIED ON ALL TRANSACTIONS AS WELL AS BY FINES ON THE AREA'S FEW PRIVATE BUSINESSES THE FUND IS SUBSTANTIAL ENOUGH TO PERMIT MR GORYACHOV TO DOLE OUT PLENTY OF GOODIES INCLUDING GOLD TOOTH FILLINGS FOR RETIREES VIDEOTAPE PLAYERS FOR ORPHANAGES AND CULTURAL PERFORMANCES FOR ALL LOCALS HAVE BECOME SPOILED AN ELDERLY WOMAN COMES TO THE OFFICE OF EMMA GRIGORIEVA MANAGER OF ULYANOVSK'S WELFARE SERVICES TO DEMAND A DAILY RATION OF CAVIAR UNDERLINING THAT ONLY BLACK CAVIAR WILL DO MS GRIGORIEVA TURNS DOWN THE REQUEST GENTLY EXPLAINING TO THE DISAPPOINTED PENSIONER THAT IT'S NOT GOOD TO EAT CAVIAR EVERY DAY BUT IT IS THE LOW GOVERNMENTCONTROLLED PRICES REINFORCED BY A SYSTEM OF RATION COUPONS THAT MOST PLEASE ULYANOVITES ON A RECENT TOUR OF THE REGION'S STORES MR GORYACHOV AND HIS PRICE STATISTICIAN DISCOVER THAT ONE GOVERNMENTRUN SHOP IS SELLING BREAD FOR 20 RUBLES OR ABOUT ONE CENT MORE THAN THE PROVINCIAL CEILING GENERALLY BREAD HERE COSTS JUST A THIRD WHAT IT DOES IN MOSCOW THE GOVERNOR CALLS FOR A TEAM TO INVESTIGATE AND AS THE STATISTICIAN EXPLAINS TO PERSECUTE THE GUILTY AT MINUTA ONE OF THE VERY FEW PRIVATE STORES IN THE PROVINCE EMPLOYEE LYUDMILLA VASSILIEVA DECRIES LOCAL PRICING REGULATIONS WE LOSE MONEY ON EVERY LOAF OF BREAD WE SELL COMPLAINS THE MINISKIRTED ACCOUNTANT BUT THE GOVERNMENT REQUIRES THE STORE TO SELL BREAD AND WON'T LET IT RAISE THE PRICE A COUPLE OF TIMES A MONTH SHE SAYS THE PRICE POLICE VISIT THE STORE TO ENSURE THAT MINUTA'S MARKUPS DON'T EXCEED MANDATED MAXIMUMS THAT OFTEN ARE AS LOW AS 10 ABOVE WHOLESALE PRICES TO INSULATE ULYANOVSK FROM THE MARKET CHAOS BEYOND ITS BORDERS THE LOCAL GOVERNMENT BARS THE EXPORT OF ITS ABUNDANT AGRICULTURAL OUTPUT IMPORTED GOODS FROM THE REST OF RUSSIA AND OVERSEAS TEND TO BE SCARCE AND EXPENSIVE HIGHWAY POLICE CHECK OUTBOUND CARGOES AND CUSTOMS AGENTS AT THE AIRPORT OFTEN STOP PASSENGERS TRYING TO SPIRIT OUT CONTRABAND LIKE CHEAP BUTTER OR A FEW EGGS THERE IS INDEED A MIRACLE IN ULYANOVSK SAYS MS BAGDASAROVA THE OPPOSITION PAPER'S EDITOR DESPITE THE INEVITABILITY OF CHANGE HERE IT DIDN'T COME 9403210095 940321 HEARD ON THE STREET VF FITS SOME INVESTORS' IMAGE OF A GOOD BUY' AS REBOUND FROM 2 WEAK QUARTERS IS LIKELY BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL VF CORP THE LONGTIME POWER HITTER OF THE BLUEJEANS MARKET IS BATTING WITH A TWOSTRIKE COUNT AGAINST IT FOR TWO QUARTERS ITS EARNINGS HAVE DISAPPOINTED WALL STREET YET SOME PORTFOLIO MANAGERS WITH EXCELLENT RECORDS HAVE BEEN ACCUMULATING THE STOCK THEY THINK IT'S A GOOD BUY AT FRIDAY'S CLOSING PRICE OF 50 A SHARE IF THE STOCK SAGS A BIT FURTHER BECAUSE THE EARNINGS MALAISE CONTINUES THROUGH THE CURRENT QUARTER THEY SAY THE SHARES WOULD BE AN EVEN BETTER BUY BECAUSE A REBOUND IS LIKELY LATER THIS YEAR BASED IN WYOMISSING PA VF PROVIDES ABOUT 30 OF BLUE JEANS IN THE US THE LARGEST SHARE FOR ANY SINGLE COMPANY AND GETS ABOUT HALF ITS SALES AND EARNINGS FROM JEANS JEANS ARE PRICED ALL OVER THE LOT FROM ABOUT 16 TO 60 WITH MIDRANGE BRANDS OFTEN FETCHING ABOUT 28 VF BRANDS INCLUDE LEE AND WRANGLER IN THE MIDPRICED RANGE RUSTLER AND AMERICAN HERO AT THE LOW END AND GIRBAUD AT THE PRICEY END THE COMPANY ALSO MAKES SPORTSWEAR JANTZEN LINGERIE VANITY FAIR AND VASSARETTE CHILDREN'S CLOTHING HEALTHTEX AND TSHIRTS AND SWEATSHIRTS BASSETTWALKER AND THE RECENTLY ACQUIRED NUTMEG INDUSTRIES THE WEAK QUARTERS STEMMED MAINLY FROM PROBLEMS IN FLEECE PRODUCTS SWEATSHIRTS AND SWEATPANTS AND IN THE GIRBAUD HIGHEND JEANS LINE VF HAS SAID THESE PROBLEMS WILL ALSO AFFECT FIRSTQUARTER 1994 RESULTS PROPONENTS SAY THE TROUBLES ARE TEMPORARY ON THE PLUS SIDE THEY SAY VF HAS A COLLECTION OF HIGHLY REGARDED BRANDS GREAT DISTRIBUTION CHANNELS THROUGH BOTH DISCOUNT STORES AND DEPARTMENT STORES CHANCES FOR FAST GROWTH IN EUROPE AND A SOLID BALANCE THE STOCK SELLS FOR A PRICE/EARNINGS RATIO ONLY 13 TIMES THE PAST FOUR QUARTERS' EARNINGS CHEAP IN THE CURRENT MARKET AND IT'S ONLY 12 TIMES ANALYSTS' CONSENSUS GUESS OF EARNINGS FOR 1994 408 A SHARE ACCORDING TO FIRST CALL YOU'RE PAYING A P/E SIGNIFICANTLY LOWER THAN THE MARKET FOR A BETTERTHANAVERAGE COMPANY SAYS WILLIAM NYGREN DIRECTOR OF RESEARCH AT HARRIS ASSOCIATES CHICAGO HARRIS WITH ONE OF THE BEST STOCKPICKING RECORDS IN THE MONEYMANAGEMENT BUSINESS OWNS ABOUT 300000 SHARES FIRST PACIFIC ADVISORS IN LOS ANGELES OWNS A BIG CHUNK OF THE STOCK I VIEW THIS STOCK A LITTLE BIT LIKE I VIEW NIKE SAYS GEORGE H MICHAELIS CHIEF EXECUTIVE OFFICER BOTH COMPANIES HE SAYS HAVE LONGTERM RECORDS OF OUTSTANDING PROFITABILITY BUT HAVE STUMBLED RECENTLY HE WOULDN'T CHASE VF STOCK ABOVE ITS CURRENT PRICE BUT WOULD BUY MORE ON ANY WEAKNESS VISTA GROWTH & INCOME FUND WHICH IS AMONG THE TOP PERFORMING MUTUAL FUNDS FOR THE PAST FIVE YEARS OWNS ABOUT 200000 VF SHARES ONE MORE TOUGH QUARTER AND THEN RESULTS SHOULD IMPROVE IN THE SECOND HALF SAYS GREGORY S ADAMS A MANAGER AT THE VISTA FAMILY OF FUNDS I LOOK AT IT AS LOWRISK HERE I SEE 45 TO 46 AS A BOTTOM WORST CASE TO BE SURE SOME HOLDERS ARE GETTING ANTSY THE EARNINGS DISAPPOINTED US THE LAST COUPLE OF QUARTERS SAYS ONE MONEY MANAGER WHO OWNS THE STOCK WE WERE IN THE PROCESS OF ACCUMULATING IT AND WE DECIDED TO JUST MONITOR IT FOR A WHILE ONE MORE SUBPAR EARNINGS REPORT AND HE MIGHT DUMP THE STOCK HE SAYS ALAN RONESS OF FAHNESTOCK WHO HAD ISSUED A GLOWING REPORT ON VF WHEN IT TRADED AT 44 LAST FALL SAYS IT'S ONLY A HOLD AT 49 HE ASSERTS THAT MANAGEMENT DIDN'T KNOW THEY WEREN'T GOING TO HIT THEIR NUMBERS VF MANAGERS WERE UNAVAILABLE FOR COMMENT FRIDAY THE HIGHEND JEAN MARKET GOT CLOBBERED THEY THOUGHT IT WAS STARTING TO STABILIZE AND IT GOT WORSE BRENDA J GALL OF MERRILL LYNCH RATES VF ABOVE AVERAGE THE SECONDBEST RECOMMENDATION ON MERRILL'S FIVEPOINT SCALE THEY HAVE SOME TERRIFICALLY STRONG BRANDS MS GALL SAYS SHE BELIEVES THAT VF'S ADS FOR LEE JEANS IN WINTER OLYMPICS BROADCASTS WERE EFFECTIVE AND THAT THE COMPANY HAS EXCELLENT GROWTH PROSPECTS IN EUROPE ITS EUROPEAN JEANS BRANDS INCLUDE LOU BOLERO SILHOUETTE CARINA SILTEX AND VARIANCE JOSEPHINE R ESQUIVEL OF LEHMAN BROTHERS GOES FURTHER CALLING VF A STRONG BUY THE SYNERGIES BETWEEN NUTMEG AND BASSETTWALKER ARE INCREDIBLE SHE SAYS BASSETTWALKER CAN PROVIDE BLANK TSHIRTS AND SWEAT SHIRTS THAT NUTMEG A SPECIALIST IN LICENSED SPORTS APPAREL CAN EMBLAZON WITH THE NAMES OF POPULAR SPORTS TEAMS THIS SHOULD HELP BOTH BUSINESSES AND RELIEVE OVERCAPACITY PROBLEMS AT BASSETT THAT'S REALLY NOT GOING TO HAPPEN UNTIL THE SECOND HALF OF THE YEAR MS ESQUIVEL SAYS NUTMEG HAD PREVIOUS CONTRACTS WITH OTHER SUPPLIERS BUT THESE WILL EXPIRE SOON ALL IN ALL MS ESQUIVEL AND OTHERS SAY VF COULD BE A GOOD FIT IN A LOT OF PEOPLE'S PORTFOLIOS YEAR ENDED JAN 1 1994 FOURTH QUARTER JAN 1 1994 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 9403210094 940321 LETTERS TO THE EDITOR WE FIX PROBLEMS INSTEAD OF BLAME I AM WRITING TO CORRECT THE INFERENCE IN MARCY MASON'S MARCH 14 MANAGER'S JOURNAL THE CURSE OF WHISTLEBLOWING THAT INTERNATIONAL PAPER'S COMPLIANCE HOTLINE ENCOURAGES UNFOUNDED ACCUSATIONS OR FAILS TO PROTECT EMPLOYEES BY PROVIDING ADEQUATE CONFIDENTIALITY IN FACT OUR HOTLINE OPERATES THROUGH AN INDEPENDENT OUTSIDE COMPANY SUGGESTED IN THE MANAGER'S JOURNAL AS THE BEST WAY TO ENSURE CONFIDENTIAL TREATMENT TO EMPLOYEES MAKING ALLEGATIONS AND INVESTIGATIONS ARE HANDLED BY A PROFESSIONALLY TRAINED COMPANY AUDIT STAFF THE OBJECTIVE IS TO FIX PROBLEMS NOT TO FIX BLAME AS ALSO NOTED IN YOUR ARTICLE MOST OF THE PREMIER ETHICS PROGRAMS AT US CORPORATIONS HAVE SIMILAR HOTLINE REPORTING SYSTEMS INTERNATIONAL PAPER IS PROUD THAT IT IS IN THE FOREFRONT OF INDUSTRY EFFORTS TO PREVENT AND DETECT VIOLATIONS AND COMPLY WITH ALL LAWS AND REGULATIONS GOVERNING OUR OPERATIONS 9403210092 940301 BUSINESS WORLD DAYS OF WHINE AND POSES BY TIM W FERGUSON THE BESIEGED MIDDLE CLASS CONTINUES TO BE GOOD COPY WITH NEW BOOKS STILL ROLLING OUT NEARLY A DECADE INTO THE CURRENT BROODING CYCLE THE LATEST SILENT DEPRESSION THE MOOD CLEARLY HAS POLITICAL AS WELL AS MARKET RESONANCE MICHAEL DUKAKIS SCORED POINTS WITH IT AND BILL CLINTON PROBABLY GOT ELECTED PRESIDENT ON ITS INTENSITY BUT REALLY A LOT OF IT IS WHAT WRITER JONATHAN RAUCH CALLED WHINING IN A REVIEW OF ONE OF THE ANGSTRIDDEN VOLUMES LAST YEAR A HALF HOUR'S SEARCH AT A UCLA LIBRARY TURNED UP 20 WORKS ON THE MIDDLECLASS PLIGHT GOING BACK TO THE GREAT DEPRESSION WHEN THERE REALLY WAS SOMETHING TO COMPLAIN ABOUT THE LATEST BATCH BUILDS ON THE INFAMOUS DROPOFF IN AVERAGE US REAL PERSONAL INCOME DATING BACK TO 1973 ALTHOUGH AN EARLIER SPATE OF ATTENTION FOLLOWED THE 1968 PRESIDENTIAL RACE TIME MAGAZINE CROWNED THE MIDDLE CLASS MEN AND WOMEN OF THE YEAR IN 1970 IT MAKES MARKETING SENSE TO COMMISERATE WITH YOUR CUSTOMERS FORTUNE MAGAZINE LATE LAST YEAR LOOKED AT UPPERMIDDLECLASS WOES IN AN ARTICLE WHOSE EXAMPLES RATHER DETRACTED FROM THE SERIOUSNESS OF THE PROPOSITION THIS IS THE SAME PUBLICATION THAT IN 1969 WROTE OF A HOUSING CRISIS THAT WAS SPREADING TO THE WHITE MIDDLE CLASS AND EVEN TO QUITE AFFLUENT FAMILIES FORTUNE WASN'T ALWAYS SO FAR OFF THE MARK TODAY'S TYPICAL TRACT ON THE MIDDLE CLASS IS WRITTEN BY AN ACADEMIC OR JOURNALIST WITH A SERMON IN STORE ABOUT REAGANISM AND UNBRIDLED CAPITALISTS IN AN EARLIER AGE THE SAME SORT WOULD HAVE BEEN DECRYING THE STERILE ACQUISITIVENESS OF BOURGEOIS LIFE TO BE SURE THE ROSS PEROT PHENOMENON SHOWS THIS DISCONTENT IS NOT LIMITED TO INTELLECTUALS BUT THE WELLSPRING OF POPULAR SENTIMENT MAY BE FOUND THERE IN THE SHORT RUN THE NOTION THAT THE MIDDLE CLASS IS PUT UPON HAS HAD RESULTS THE LEFT MUST REGRET IT HAS INNOCULATED THOSE OF US IN THAT INCOME GROUP FROM MOST OF THE INCREASED TAXES THAT OUR NEWFOUND ADVOCATES MIGHT LIKE TO LEVY IN ORDER TO EFFECT THE NEW DEALSTYLE REDISTRIBUTION THAT ALWAYS IS THEIR TRUE DEVOTION THAT'S A SUBJECT FOR ANOTHER DAY HOWEVER WHAT ABOUT THE QUALITY OF LIFE FOR THE MIDDLE CLASS THE GROUP I HAVE IN MIND IS A NOTCH OR TWO ABOVE THE STATISTICAL MEDIAN IT IS URBAN OR SUBURBAN LARGELY PROFESSIONAL OR MANAGERIAL BUT ALSO INCORPORATING MANY WANNABES IN SUPPORT POSITIONS THOSE WHO WERE IN UNIONIZED MANUFACTURING ARE DEMONSTRABLY WORSE OFF TODAY THAN WHEN THEY RULED THE WORLD MARKETS BUT MOST OTHERS ARE BETTER OFF EVEN IF THEY DON'T REALIZE IT MAYBE THE COUPLE THAT A COLLEAGUE OF MINE RECENTLY SAW ON A TRANSCONTINENTAL FLIGHT WOULD CONSIDER THEMSELVES TO BE PINCHED IN THE MIDDLE THEY SEATED THEMSELVES IN BUSINESS CLASS PERHAPS USING FREQUENTFLYER MILES WHICH DIDN'T EXIST A GENERATION AGO THEY SENT THEIR TWO MISBEHAVING KIDS BACK TO THE COACH SECTION WITH THEIR NANNY IMAGINE NANNIES AU PAIRS PERSONAL DAYCARE PROVIDERS HOWEVER YOU WANT TO DESCRIBE THIS INSTITUTION IT IS A NEW ONE FOR THOSE OF US WHO GREW UP SINCE WORLD WAR II THE PROPRIETY OF SO RAISING CHILDREN ASIDE IT CAN BE A BIGGER TIME SAVER THAN GRANDMA WAS EVEN THOSE OF US WHO HAVE AN OCCASIONAL HOUSEKEEPER ARE EMPLOYING A SERVICE THAT WOULD HAVE BEEN AN UNTHINKABLE LUXURY TO OUR PARENTS BUT THEN WE'RE GONE FROM HOME A LOT MORE AND NOT JUST TO DO OFFICE TOIL WE TAKE MORE TRIPS EVEN IF THEY'RE SHORT ONES HOW WAS YOUR LAST CRUISE AND PARTICIPATE IN OR WATCH MORE LEISURE EVENTS THE RANKS OF GOLFERS FOR EXAMPLE DOUBLED IN THE '70S AND '80S WE DEFINITELY GAMBLE MORE AND DINE OUT TOO SAMPLING A RANGE OF CUISINES THAT FEW OF OUR FOREBEARS COULD HAVE EVEN PRONOUNCED FINALLY WE SPEND MORE TIME MEDIABOUND THE BUREAU OF LABOR STATISTICS FINDS THAT URBAN WAGE AND CLERICAL CONSUMER UNITS SPENT A LARGER SHARE OF THEIR DOLLARS ON ENTERTAINMENT AND READING IN THE LATE 1980S 61 THAN IN THE EARLY 1970S 53 OR ANY TIME BEFORE BODY FACIAL AND HAIR CARE ALL TAKE TIME AND MONEY BUT DON'T MORE PARTAKE NOW OF COURSE WE BUY BOTTLED WATER AT MORE THAN 1 A POP EVEN THOUGH THE STUFF FROM THE TAP IS GETTING BETTER ALL THE TIME YES WE DO PAY A LOT FOR POLLUTION CONTROLS WE EAT MORE UNCANNED PRODUCE AND DRINK FRESHFRUIT JUICES INSTEAD OF SUGARY PUNCH AND WHEN WE DO IMBIBE WINE OR BEER WHICH IS LESS IT ISN'T THE BULK STUFF IT WAS IN THE '60S EVEN COFFEE IS NOW AN EVENT CABLE TV OR SATELLITE IS AN ADDED EXPENSE FOR MOST PEOPLE BUT COMPARE THE RECEPTION TO YESTERYEAR'S LET ALONE THE RANGE OF PROGRAMMING TALK IS CHEAP AS LONG AS IT'S LONGDISTANCE WHICH USED TO COST SO MUCH YOU KEPT CONVERSATIONS BRIEF OUR MULTIPLE PHONES FAXES COMPUTERS CDS VIDEO AND AUDIO SYSTEMS ALARMS ONLY WHEN WE VISIT A BACKWARD CORNER OF THE WORLD ARE WE REMINDED OF WHAT LIFE USED TO BE LIKE FOR US NOW MOST OF THAT ELECTRONIC STUFF IS EVEN IN OUR CARS SORRY VEHICLES NOW AND NEARLY EVERY ONE OF US HAS SOMETHING OF OUR OWN TO DRIVE US SURVEY DATA SHOW NEARLY ONE CAR FOR EVERY PERSON OF DRIVING AGE THE HOME WE LIVE IN MAY COST MORE TODAY ALTHOUGH IN CALIFORNIA AND THE NORTHEAST LESS THAN IT DID FIVE YEARS AGO BUT IT PROBABLY HAS MORE ROOMS THAN THE ONE WE GREW UP IN IN 1988 42 OF NEW HOMES HAD MORE THAN 25 BATHROOMS ALMOST DOUBLE THE PERCENTAGE IN 1978 DON'T YOU REMEMBER SHARING A SINK OR SHOWER MAYBE EVEN A BEDROOM NOT MANY MIDDLECLASS YOUNGSTERS THESE DAYS SUFFER SUCH PRIVATIONS BASED ON THE COMPLAINTS I'VE HEARD AT A SUMMER PROGRAM WHERE I'VE TAUGHT HIGHSCHOOLERS FORCED TO LIVE IN AN EARLY '60S DORMITORY I GUESS THEY'RE PARTICULAR ABOUT THE CLOTHES THEY WEAR TOO THOUGH YOU MIGHT NOT KNOW IT BACK HOME THEY LIKE THE REST OF US PROBABLY DROP BEAUCOUP BUNDLES AT THE DRY CLEANER WHICH IN AN EARLIER DAY WAS RESERVED FOR ONE'S BETTER SUITS AND SILKS KIDS STARTING WITH THEIR HIGHTECH STROLLERS WE BABY 'EM IN THIS INCOME BRACKET TO LITTLE LEAGUE AND PIANO LESSONS HAVE BEEN ADDED MYRIAD OTHER FEEBASED ACTIVITIES AND WE UNIFORM THE FUTURE STARS AND SHOOT PICTURES OR VIDEOS OF THEM AS NEVER BEFORE LOOKS ARE IMPORTANT RARE IS THE MIDDLECLASS YOUNGSTER OR ADULT WHO DOESN'T GET HELP FOR IMPERFECT TEETH OR BAD SKIN BY THE TIME THEY REACH PROM AGE THEY'RE READY TO PUT ON THE RITZ THEMSELVES ONCE UPON A TIME LIMOUSINES WERE FOR WEDDINGS IF YOU WERE LUCKY TO MAINTAIN OUR OWN YOUTH WE HAVE HEALTH CLUBS WORKOUT GEAR WHIRLPOOLS AND THE LIKE THAT ONLY THE RESORT CROWD ONCE ENJOYED AND THERE'S THERAPY FOR THE MIND TOO BEFORE THE 1970S THAT WAS MORE SOMETHING FOR THE WOODY ALLENS OF THE WORLD ANXIETY IS PROBABLY UP AS WE WORRY MORE ABOUT WORKPLACE CHANGES BUT LIFE IS RICHER NOW NO MATTER WHAT WE READ AT THE BOOKSTORE HOUSEHOLDS OWNING A VACATION HOME NEW HOMES WITH CENTRAL AIR CONDITIONING SEE RELATED LETTER LETTERS TO THE EDITOR DECLINING QUANTITY OF QUALITY TIME WSJ MARCH 21 1994 9403010093 YY94 MM03 9403210091 940321 WORLD MARKETS RATE FEARS AND SLUMP IN BONDS PUMMEL BOURSES THROUGHOUT EUROPE HONG KONG STOCKS DIVE 4 A WALL STREET JOURNAL ROUNDUP PERSISTENT WORRIES ABOUT INTEREST RATES AND SLUMPING EUROPEAN BOND MARKETS FRIDAY BATTERED SHARES ON THE CONTINENT LONDON STOCKS FELL SHARPLY ON FEARS OF HIGHER US RATES FRANKFURT PRICES FELL ON CONTINUED DISAPPOINTMENT THAT GERMANY DIDN'T LOWER KEY RATES LAST WEEK TOKYO STOCKS RETREATED FRIDAY ON PROFITTAKING AHEAD OF A THREEDAY WEEKEND IN JAPAN THE MARKET IS CLOSED MONDAY FOR A NATIONAL HOLIDAY IN HONG KONG HEAVY SELLING OF BLUECHIP SHARES PUSHED THE BENCHMARK INDEX DOWN 4 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11585 DOWN 063 REFLECTING DROPS IN EUROPEAN AND ASIA/PACIFIC MARKETS AND AN INCREASE IN MARKETS IN THE AMERICAS OIL DRILLING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11856 UP 296 OR 256 WITH GLOBAL MARINE OF THE US POSTING A 556 GAIN IN ITS LOCAL CURRENCY HOME CONSTRUCTION STOCKS TRAILED AT 14088 DOWN 302 OR 210 WITH BANDAR RAYA DEVELOPMENTS OF MALAYSIA SLIDING 928 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLUMPED 376 POINTS TO 32181 THE FT 30STOCK INDEX SLID 236 POINTS TO 25427 VOLUME WAS 6094 MILLION SHARES COMPARED WITH 6597 MILLION SHARES A DAY EARLIER ANXIETY ABOUT US INTEREST RATES WAS INTENSIFIED BY NEWS OF A MEETING CALLED FRIDAY BETWEEN US FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN AND PRESIDENT CLINTON THOUGH A FED SPOKESMAN CHARACTERIZED THE SESSION AS ROUTINE DIRECT MEETINGS BETWEEN THE CENTRAL BANK CHIEF AND THE PRESIDENT ARE RARE THIS CAUSED INVESTORS IN LONDON TO SPECULATE THAT THE FED MAY TIGHTEN MONETARY POLICY AGAIN THE LONDON MARKET ALSO WAS SOCKED BY SEVERE WEAKNESS IN BRITISH BOND MARKETS AND THE EXPIRATION OF A STOCKINDEX FUTURES CONTRACT STILL SOME STOCKS RECOVERED A BIT AFTER WALL STREET POSTED EARLY GAINS IN FRANKFURT THE DAX 30STOCK INDEX DROPPED 1945 POINTS TO 215561 ENDING THE WEEK WITH A 25 GAIN DEALINGS WERE DOMINATED BY EXPIRATIONS ON THE GERMAN FUTURES AND OPTIONS MARKET NEWS OF THE CLINTONGREENSPAN MEETING IN THE US ALSO MADE THE FRANKFURT STOCK MARKET JUMPY IN PARIS STOCKS TUMBLED 12 ON PROFITTAKING AFTER INTERESTRATE CUTS FAILED TO MATERIALIZE LAST WEEK MANY DISAPPOINTED PARTICIPANTS TRIMMED THEIR POSITIONS AFTER THE GERMAN CENTRAL BANK CUT A MINOR INTEREST RATE LESS THAN EXPECTED AND THE FRENCH CENTRAL BANK ACTED SIMILARLY EARLIER IN THE WEEK IN AMSTERDAM PRICES CLOSED BROADLY LOWER BECAUSE OF SLUMPING EUROPEAN BOND MARKETS WHICH WERE DRIVEN DOWN BY WORRIES ABOUT THE US POLITICAL SITUATION AND AN INCREASE BY A US BANK IN ITS PRIME RATE IN MILAN THE MARKET INCLUDING SHARES TRADED ELECTRONICALLY DIVED 18 IN THIN ACTIVITY ON SELLING AHEAD OF THE WEEKEND AND COMING ITALIAN ELECTIONS AND ON PRESSURE BECAUSE OF THE DEPRESSED ITALIAN BOND FUTURES MARKET IN MADRID PRICES SLIPPED HURT BY DECLINING BOND PRICES ACROSS EUROPE THE MARKET RECOVERED FROM LOWS LATE IN THE DAY AS FUTURESRELATED TRADING LIFTED PRICES AHEAD OF THE FRIDAY EXPIRATION OF THE MARCH FUTURES CONTRACT IN STOCKHOLM SHARES FELL 12 IN A LACKLUSTER SESSION RISING BOND YIELDS POOR PERFORMANCES IN MAJOR MARKETS ABROAD AND CONCERN ABOUT A LARGE NUMBER OF NEW STOCK ISSUES ON THE SWEDISH BOURSE COMBINED TO DAMP INVESTOR SENTIMENT IN ZURICH STOCKS DECLINED 15 BATTERED BY INTERESTRATE WORRIES THE SWISS BOND MARKET WAS WEAK AND NEWS OF THE CLINTONGREENSPAN SESSION ADDED TO THE SWISS STOCK MARKET'S BEARISHNESS IN BRUSSELS PRICES CLOSED MIXED AS FEARS OF HIGHER LONGTERM INTEREST RATES AND SELLING ON OTHER EUROPE BOURSES REVERSED BELGIAN EQUITIES' EARLY GAINS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 8561 POINTS THURSDAY DECLINED 12271 TO 2046945 NEAR THE DAY'S LOW OF 2044014 FIRSTSECTION VOLUME WAS ESTIMATED AT 450 MILLION SHARES DOWN FROM 5718 MILLION SHARES A DAY EARLIER DECLINING ISSUES EDGED OUT ADVANCERS 561471 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 474 POINTS THURSDAY EDGED DOWN 129 TO 164724 SELLING BY DEALERS AND CORPORATIONS AND DUMPING OF NIKKEI FUTURES BY INVESTMENT TRUSTS MORE THAN OFFSET BUYING BY FOREIGN INVESTORS WHO SNAPPED UP MULTIMEDIA ISSUES EXPORTERS AND LARGECAPITALIZATION ISSUES THOUGH PROFITTAKING AND SELLING BY DEALERS LEFT THESE SECTORS MIXED IN HONG KONG ACTIVITY WAS THE BUSIEST IN TWO WEEKS AS THE KEY INDEX FELL FOR THE FOURTH STRAIGHT SESSION TO END AT LATENOVEMBER LEVELS THE INDEX WHICH HAS FALLEN IN SEVEN OF THE PAST EIGHT SESSIONS FELL 78 LAST WEEK PUSHING IT DOWN 23 THIS YEAR AMONG THE HARDESTHIT SECTORS UTILITIES SKIDDED 47 FINANCIAL STOCKS SANK 45 AND REALESTATE ISSUES FELL 44 INVESTORS ACTED ON THEIR WORRIES ABOUT HIGHER INTEREST RATES IN THE US AND HONG KONG AS WELL AS THE POSSIBILITY THAT CHINA WON'T RETAIN FAVORABLE US TRADING STATUS THE PESSIMISM WAS FED BY RUMORS THAT MORGAN STANLEY A US INVESTMENT BANK HAD REDUCED ITS HONG KONG HOLDINGS AND ADVISED ITS CLIENTS TO DO THE SAME MORGAN STANLEY'S HONG KONG OFFICE RECENTLY ISSUED A REPORT SAYING THE BLUECHIP INDEX COULD FALL SHARPLY BUT IT ALSO DESCRIBED FACTORS THAT COULD MAKE THE MARKET SURGE IN SEOUL STOCKS SLIPPED ON WIDESPREAD SENTIMENT THAT THE MARKET MAY NOT GAIN GROUND FOR A WHILE BECAUSE OF THE SOUTH KOREAN GOVERNMENT'S TIGHT MONETARY POLICY IN SINGAPORE SHARES DIVED IN EARLY TRADING BUT PARTLY RECOVERED TO CLOSE 23 LOWER IN THIN PANICKY DEALINGS INSTITUTIONAL INVESTORS IN HONG KONG SPARKED THE SELLING AND FUNDS IN THE BRITISH TERRITORY THAT SOUGHT TO RAISE CASH DUMPED SINGAPORE HOLDINGS AND NERVOUS DOMESTIC INVESTORS JUMPED ONTO THE BANDWAGON IN KUALA LUMPUR EQUITIES SLID 2 IN LIGHT TRADING HIT BY SUSTAINED SELLING IN BLUE CHIPS THOUGH MALAYSIAN GOVERNMENTLINKED INSTITUTIONS BOUGHT SOME BLUE CHIPS BRAKING THE MARKET'S DROP IN MANILA SHARES SANK 2 BECAUSE OF HEAVY PROFITTAKING AND BY SELLING IN THE TELECOMMUNICATIONS SECTOR IN BANGKOK STOCKS TUMBLED 16 IN LIGHT TRADING AS THE MARKET'S RECENT BEAR RUN CONTINUED AND PRICES WERE PRESSURED BY DECLINES ON REGIONAL BOURSES 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 9403210089 940321 COMMODITIES NEW RALLY IN PRICES OF COPPER AND ALUMINUM IS DRIVEN BY HEDGE FUNDS' AGGRESSIVE INVESTING BY NEIL BEHRMANN SPECIAL TO THE WALL STREET JOURNAL LONDON AGGRESSIVE INVESTING BY HEDGE AND COMMODITY FUNDS HAS SPAWNED A NEW RALLY IN THE PRICES OF INDUSTRIAL METALS SUCH AS COPPER AND ALUMINUM FUNDS ARE SEEKING ALTERNATIVE OUTLETS TO SAGGING BOND AND EQUITY MARKETS SAYS PHILLIP CROWSON CHIEF ECONOMIST AT RTZ PLC THE WORLD'S BIGGEST INTERNATIONAL MINING CORPORATION THE ATTITUDE OF FUNDS TO METALS MARKETS IS HEADS I WIN TAILS YOU LOSE' IF PRICES RISE THEY HOLD ON FOR FURTHER CAPITAL GAINS IF THEY FALL METALS BECOME EVEN BETTER BARGAINS AND THEY BUY MORE HE SAYS INCREASING INVESTOR INTEREST IN ONCEESOTERIC INDUSTRIAL METALS FUTURES CONTRACTS HAS IMPROVED THE DEPTH OR LIQUIDITY OF THESE MARKETS AND MADE THEM MORE ATTRACTIVE TO BIG PLAYERS SUCH AS HEDGE FUNDS OPEN INTEREST THE NUMBER OF CONTRACTS OUTSTANDING ON THE LONDON METAL EXCHANGE OR LME IS WORTH AROUND 3 BILLION A DAY MR CROWSON SAYS YET DESPITE THE MARKET'S GROWTH IT ISN'T SO BIG THAT THE HUGE TRADING OF HEDGE FUNDS CAN'T HAVE A MAJOR IMPACT ON IT THE FUNDS CAN EXERT SUBSTANTIAL LEVERAGE ON PRICES MR CROWSON SAYS THE PRICES OF LONDON'S TWO MOST WIDELY TRADED CONTRACTS COPPER AND ALUMINUM HAVE RISEN SHARPLY IN RECENT WEEKS BOTH BECAUSE OF INTEREST FROM BIG INVESTORS AND IMPROVED BUYING BY INDUSTRIAL USERS OF THE METALS AT 1344 A METRIC TON OR 61 CENTS A POUND ALUMINUM FUTURES ON THE LONDON METAL EXCHANGE ARE AT 19MONTH HIGHS AND ARE 28 ABOVE LAST NOVEMBER'S LOWS COPPER AT 93 CENTS A POUND HAS RISEN 22 SINCE ITS NOVEMBER LOW AND IS NOW AT A SIXMONTH HIGH WHENEVER COPPER QUOTES DIP THE METAL IS PROMPTLY BOUGHT BY MERCHANTS AND FUNDS SAYS TED ARNOLD LONDONBASED METALS ANALYST FOR MERRILL LYNCH & CO WHEN METALS MERCHANTS TAKE PROFITS THE FUNDS BUY MORE SIMILAR STRATEGIES ARE APPLIED TO ALUMINUM DEALERS SAY FUNDS ARE WADING INTO ALUMINUM AND OTHER METALS WITH GAY ABANDON SAYS A REPORT OF BROOK HUNT & ASSOCIATES A METALS CONSULTANCY BASED IN THE UK WITH INFLATION FEARS INCREASING THESE FUNDS SEE INFLATIONSENSITIVE METALS CONTRACTS AS AN ATTRACTIVE INVESTMENT THE CONSULTANCY SAYS MANY HEDGE AND COMMODITY FUND MANAGERS USE MATHEMATICAL COMPUTATIONS TO DO THEIR TRADING BUT FUND MANAGERS ALSO FOLLOW FUNDAMENTAL FACTORS AFFECTING SUPPLY AND DEMAND ANALYSTS SAY AND IN THE PAST QUARTER DEMAND FOR INDUSTRIAL METALS HAS IMPROVED PARTICULARLY IN NORTH AMERICA AND ASIA BURGEONING US COPPER DEMAND IS CAUSING SHORTAGES AROUND THE WORLD SAYS KAREN NORTON AN ANALYST AT BILLITONENTHOVEN METALS LTD SHE SAYS LATIN AMERICAN PRODUCTION DESTINED FOR EUROPE IS BEING DIVERTED TO THE US AND AMERICAN COPPER MINERS ARE WORKING QUICKLY TO MEET DOMESTIC ORDERS ILLUSTRATING THE BOOM IN US COPPER DEMAND COMEX FUTURES PRICES ARE TRADING AT LEVELS MORE THAN THREE CENTS A POUND HIGHER THAN LME QUOTES AND ARE ENCOURAGING ARBITRAGEURS TO BUY IN LONDON AND SELL IN NEW YORK COPPER INVENTORIES AT BOTH THE LONDON AND NEW YORK EXCHANGES ARE DROPPING MEANWHILE COMEX STOCKS FELL TO 43000 SHORT TONS LAST WEDNESDAY FROM 126000 IN FEBRUARY 1993 WHILE LME INVENTORIES HAVE DECLINED 67000 METRIC TONS SINCE JAN 1 TO 532000 ON THURSDAY CONFIDENCE ALSO IS RETURNING TO THE ALUMINUM MARKET FOLLOWING AN AGREEMENT BY WESTERN AND RUSSIAN PRODUCERS TO CUT OUTPUT BY 15 MILLION METRIC TONS EACH ANNOUNCEMENT OF AN OUTPUT CUT PRECIPITATES A WAVE OF BUYING SAYS MR ARNOLD OF MERRILL LYNCH YET MR ARNOLD SAYS HE DOUBTS THE AGREEMENT WILL BE EFFECTIVE IN ACTUALLY LIMITING EXPORTS FOR EXAMPLE HE SAYS IT WILL BE DIFFICULT TO MONITOR PURPORTED OUTPUT CUTS BY PRODUCERS SUCH AS RUSSIA THE HIGHER THE PRICES THE GREATER THE INCENTIVE TO CHEAT AND SELL MR ARNOLD SAYS WORLDWIDE ALUMINUM INVENTORIES EXCEED FIVE MILLION METRIC TONS AN AMOUNT EQUAL TO ABOUT 130 DAYS OF GLOBAL CONSUMPTION SAYS BROOK HUNT & ASSOCIATES SO THERE ARE MORE THAN SUFFICIENT SUPPLIES TO SATISFY DEMAND ANALYSTS ALSO ARE BECOMING CAUTIOUS ABOUT THE HIGH LEVELS OF COPPER PRICES MANY FUNDS THAT HAVE INVESTED IN COPPER ARE BANKING ON A SURGE IN IMPORTS FROM CHINA A MAJOR CONSUMER DEALERS SAY IN A LENGTHY STUDY OF CHINA'S ECONOMY AND COPPER INDUSTRY HOWEVER BROOK HUNT PREDICTS CHINA'S REFINED COPPER IMPORTS WILL TUMBLE NEARLY 60 TO 150000 METRIC TONS THIS YEAR EUROPEAN AND JAPANESE PURCHASES ARE ALSO LIKELY TO BE SLOW UNTIL ECONOMIES REVIVE IN THE THIRD QUARTER OF THIS YEAR MS NORTON OF BILLITON PROJECTS WITH THE EXCEPTION OF THE US AND ASIA INDUSTRIAL CONSUMPTION OF MINERALS WORLDWIDE IS SLOW MR CROWSON OF RTZ SAYS PRICES OF IRON ORE COKING COAL AND SOME OTHER BULK COMMMODITIES THAT AREN'T AFFECTED BY FUND INVESTMENT ARE STILL PLUMBING NEW LOWS HE SAYS 9403210088 940321 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 1/4 HIGH 3 1/8 LOW 3 3/16 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 350 30 TO 44 DAYS 353 45 TO 59 DAYS 363 60 TO 75 DAYS 365 76 TO 89 DAYS 372 90 TO 119 DAYS 382 120 TO 149 DAYS 385 150 TO 179 DAYS 397 180 TO 209 DAYS 4 210 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 362 30 DAYS 374 60 DAYS 385 90 DAYS CERTIFICATES OF DEPOSIT 289 ONE MONTH 301 TWO MONTHS 316 THREE MONTHS 341 SIX MONTHS 376 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 351 ONE MONTH 375 THREE MONTHS 405 SIX MONTHS BANKERS ACCEPTANCES 351 30 DAYS 363 60 DAYS 374 90 DAYS 386 120 DAYS 392 150 DAYS 397 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 9/16 3 7/16 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 1/16 3 15/16 FIVE MONTHS 4 1/8 4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 9/16 ONE MONTH 3 7/8 THREE MONTHS 4 1/8 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 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 14 1994 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 357 13 WEEKS 385 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 768 60 DAYS 774 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 768 60 DAYS 777 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 575 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 280 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403210087 940321 BUSINESS BRIEF COLUMBIA LABORATORIES INC WOMEN'S DRUG DEVELOPER EXPECTS TO POST 1993 LOSS COLUMBIA LABORATORIES INC EXPECTS TO REPORT A LOSS OF BETWEEN 40 CENTS AND 50 CENTS A SHARE FOR 1993 NICHOLAS A BUONICONTI VICE CHAIRMAN SAID FOR THE YEAR THE MIAMI DEVELOPER OF WOMEN'S DRUGS EXPECTS TO REPORT SALES OF SLIGHTLY MORE THAN 81 MILLION AND A NET LOSS OF SLIGHTLY LESS THAN 85 MILLION IN 1992 COLUMBIA HAD A LOSS OF 85 MILLION OR 51 CENTS A SHARE ON SALES OF 92 MILLION THE LOSSES FOR BOTH YEARS WERE EXPECTED AS COLUMBIA CONTINUES TESTING AND DEVELOPING MARKETING FOR ITS FOUR MAJOR DRUGS FOR THE FOURTH QUARTER COLUMBIA EXPECTS A LOSS OF APPROXIMATELY 26 MILLION ON SALES OF SLIGHTLY LESS THAN 2 MILLION THAT COMPARES WITH A LOSS OF 39 MILLION ON SALES OF 19 MILLION IN THE SAME PERIOD OF 1992 COLUMBIA RECORDED A LOSS OF 23 CENTS A SHARE IN THE FOURTH QUARTER OF 1992 AND MR BUONICONTI SAID IN AN INTERVIW THAT THE FOURTHQUARTER LOSS PER SHARE FOR 1993 WOULD BE ABOUT HALF THAT FIGURE COLUMBIA HAS HIGH HOPES FOR FOUR DIFFERENT WOMEN'S PRODUCTS EACH OF WHICH IS ADMINISTERED IN GEL FORM INTO THE VAGINA MR BUONICONTI EXPECTS OPERATIONS TO BECOME PROFITABLE SOMETIME IN 1995 9403210086 940321 LIBERTY TECHNOLOGIES ACQUISITION CONSHOHOCKEN PA LIBERTY TECHNOLOGIES INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE INDUSTRIAL NDT CO A CLOSELY HELD PROVIDER OF SAFETY COMPLIANCE SERVICES FOR THE PAPER CHEMICAL AND ELECTRIC UTILITY INDUSTRIES LIBERTY WHICH MAKES DIAGNOSTIC SYSTEMS FOR VALVES MOTORS AND TURBINES SAID IT PLANS TO ACQUIRE INDUSTRIAL NDT FOR ABOUT 55 MILLION INCLUDING 25 MILLION IN CASH AND THE BALANCE IN LIBERTY STOCK THE PROPOSED ACQUISITION WOULD SIGNIFICANTLY BOOST LIBERTY'S SIZE INDUSTRIAL NDT HAD REVENUE OF 11 MILLION IN 1993 WHILE LIBERTY'S REVENUE TOTALED 186 MILLION THE TRANSACTION IS EXPECTED TO CLOSE BY THE END OF MARCH 9403210085 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT HOLLYWIRED THE BUZZWORD MULTIMEDIA THE HYPE ENTERTAINMENT WILL NEVER BE THE SAME THE REALITY ENTERTAINMENT WILL NEVER BE THE SAME BY RICHARD TURNER HOLLYWOOD IN TV COMMERCIALS IN THE 1950S PERT ACTRESSES IN FRILLY APRONS EXTOLLED THE VIRTUES OF A FRIGIDAIRE OR AN AMANA RANGE THE CONCEPT WAS SIMPLE THE IMPACT OBVIOUS IT WILL CHANGE YOUR LIFE THE MESSAGE WENT IT WILL MAKE THINGS EASIER IF ONLY THIS YEAR'S MODEL WERE THAT EASY TO EXPLAIN INSTEAD OVERWHELMED BY HYPE AND CLICHE MANY PEOPLE HAVE THROWN UP THEIR HANDS CALL IT THE BROADBANDCYBERSPACEINTERACTIVEMULTIMEDIAFULLSERVICE NETWORK500CHANNELDIGITALINFORMATIONSUPERHIGHWAY REVOLUTION BLUES AND THE TRUTH IS HARDER TO GET AT THAN THE TANGLED CABLES AT THE DUSTY BACK END OF A VCR SELDOM IN FACT HAS SO MUCH BEEN SAID ABOUT SOMETHING THAT EVERYBODY KNOWS IS COMING BUT ABOUT WHICH NO ONE REALLY KNOWS MUCH SAYS WALT DISNEY CO'S STUDIO CHIEF JEFFREY KATZENBERG IT WILL BE THE FIRST TIME A ROADWAY A RAILWAY AN AIRWAY OR A PHONEWAY HAS EVER BEEN BUILT TO A PLACE FOR WHICH WE DON'T KNOW THE DESTINATION BUT DON'T LET ALL THE BLATHER FOOL YOU BECAUSE THIS MUCH IS CLEAR A SEA CHANGE IS COMING IN COMMUNICATIONS INFORMATION AND ENTERTAINMENT AND IN SOME MEASURE IT'S ALREADY HERE THE SIMPLEST WAY TO UNDERSTAND THE REVOLUTION IS TO FIRST THINK OF THE PERSONAL COMPUTER AND TELEVISION SET CONVERGING INTO ONE BOX NOW IMAGINE THE MACHINE IS INTERACTIVE NOT ONLY CAN YOU SEND TEXT SOUND AND VIDEO AS WELL AS RECEIVE IT BUT BECAUSE IT'S IN DIGITAL FORM YOU CAN MANIPULATE AND NAVIGATE THROUGH IT PRETTY MUCH INSTANTANEOUSLY NOBODY YET KNOWS HOW THIS WILL ALL PLAY OUT THAT'S THE UNKNOWN DESTINATION BUT EVEN THE MOST OBVIOUS POSSIBILITIES ARE MINDBOGGLING CONSUMERS FOR INSTANCE COULD HAVE INSTANT ACCESS TO EVERY MOVIE AND TV SHOW AND PIECE OF MUSIC EVER PRODUCED THEY COULD GET ACCESS TO EVERYTHING IN THE LIBRARY OF CONGRESS THEY COULD GO SHOPPING WITH A SISTER IN SAN FRANCISCO EXAMINING PRODUCTS IN A VIRTUAL MALL FROM ALL ANGLES THEY COULD ORDER A DRIVER'S LICENSE THEY COULD COMPARE HOTEL ROOMS FOR A VACATION AND THEY COULD EXCHANGE INFORMATION WITH PEOPLE ANYWHERE IN THE WORLD ABOUT NARROW TOPICS THEY THOUGHT ONLY THEY WERE INTERESTED IN AND THAT'S JUST THE BEGINNING THE GROUNDWORK FOR MUCH OF THE REVOLUTION ALREADY IS BEING LAID GIANT TELEPHONE COMPANIES ARE FORMING PARTNERSHIPS WITH CABLE OPERATORS AND POURING BILLIONS INTO WIRING HOMES FOR TWOWAY MULTIMEDIA TECHNOLOGICAL ADVANCES INVOLVING THE COMPRESSION OF DATA AS WELL AS ITS DELIVERY MEAN THAT CHANGES ONCE THOUGHT TO COST HUNDREDS OF BILLIONS OF DOLLARS WILL COST PERHAPS ONLY A TENTH AS MUCH AND WILL ACHIEVE CRITICAL MASS MUCH SOONER EVEN THOUGH ONE HIGHLY PUBLICIZED ACQUISITION WAS ABORTED THE AGREEMENT OF BELL ATLANTIC CORP OF PHILADELPHIA TO ACQUIRE THE BIGGEST CABLE COMPANY TELECOMMUNICATIONS INC A NUMBER OF CABLE AND PHONE COMPANIES HAVE LINKED UP IN THE PAST 12 MONTHS AND A RECENT SURVEY OF INDUSTRY LEADERS BY THE WASHINGTON DC OFFICE OF DELOITTE TOUCHE TOHMATSU INTERNATIONAL FOUND A MAJORITY PREDICTING THAT 40 OF AMERICAN HOMES THEIR DEFINITION OF A MASS MARKET WILL BE WIRED TO TAKE FULL ADVANTAGE OF NEW MULTIMEDIA SERVICES FROM 1998 TO 2000 CONSUMERS ALSO SEEM POISED TO ACCEPT THE NEW WORLD PERSONAL COMPUTERS GAIN CUSTOMERS EVERY DAY AND AN INCREASING NUMBER OF USERS ARE PLUGGED INTO ONLINE SERVICES THROUGH WHICH THEY RETRIEVE INFORMATION AND TALK TO OTHERS VIDEOGAME MAKERS ALREADY RUNNING A 6 BILLION BUSINESS IN THE HOME MARKET WITH AN ADDITIONAL 75 BILLION IN ARCADES ARE INCREASINGLY ATTRACTING GROWNUPS AND YOUNGER GIRLS TO JOIN THE ADOLESCENT BOYS FOR WHOM ZAPPING ALIENS ALREADY IS SECOND NATURE THE NUMBER OF COMPUTERS IN THE US EQUIPPED TO PLAY CDROM TITLES POWERFUL INTERACTIVE COMPUTER SOFTWARE ON COMPACT DISKS IS APPROACHING SIX MILLION AND THAT MARKET HAS ONLY BEGUN TO TAKE OFF COMPUTER ENTERTAINMENT AND ELECTRONICS GIANTS ARE SPENDING BILLIONS OF DOLLARS TO SERVE THIS NEW MARKET BUT EVEN MORE IMPORTANT THOUSANDS OF SMALL ENTREPRENEURS ARE BUSY DEVELOPING INTERACTIVE SOFTWARE TO TRAVERSE THE INFORMATION SUPERHIGHWAY THIS IS WHERE FUTURE MICROSOFTS LURK MUCH OF THE CORPORATE EFFORT IS DEVOTED TO MAKING THE WHOLE PROCESS SIMPLER FOR THE CONSUMER BARRY DILLER THE QVC INC CHIEF WHO IS AS RESPONSIBLE AS ANYONE FOR STIRRING UP EXCITEMENT ABOUT THE INFOTAINMENT FUTURE LIKES TO TALK ABOUT EVERYONE HAVING ONE CONTROL YOU POINT IT HE SAYS AND SAY YES' THAT'S HIS RETORT NOT ONLY TO JARGONHAPPY COMPUTER HACKERS BUT TO THE LEGIONS OF DOUBTERS WHO SAY THEY CAN'T EVEN PROGRAM THEIR VCRS FOR THE AMERICAN ENTERTAINMENT INDUSTRY THE TECHNOLOGICAL REVOLUTION IS VIEWED WITH A MIXTURE OF HOPE AND PANIC THE HOPE RESTS ON A SIMPLE PREMISE CONSUMERS ALREADY SPEND MUCH OF THEIR LEISURE TIME WATCHING HOLLYWOOD'S PRODUCTS JUST AS CABLE TV AND HOME VIDEO PROVIDED NEW WAYS TO WATCH MOVIES AND GENERATED EXTRA PROFITS SO SHOULD THE ABILITY TO INSTANTLY CALL UP MOVIES AND OTHER PROGRAMMING ON DEMAND IN THE LANGUAGE OF THE DIGITAL FUTURE THE STUDIOS ARE THE CONTENT PROVIDERS THE INTELLECTUALPROPERTY HOLDERS THE SOFTWARE MAKERS THE GRAND NEW DISTRIBUTION NETWORKS WILL ONLY MAKE THEIR PRODUCTS MORE VALUABLE THAT'S WHAT THE BATTLE FOR PARAMOUNT COMMUNICATIONS INC WAS ALL ABOUT STILL HOLLYWOOD'S CONVERSION IS RELATIVELY RECENT TWO YEARS AGO MUCH OF THE TOWN VIEWED THE FUTURE WITH BENIGN NEGLECT FOR YEARS AN ADVANCE GUARD OF TECHNOLOGISTS AND FUTURISTS HAD FLOWN IN FROM NORTHERN CALIFORNIA TO TALK ABOUT DIGITAL DESTINY A GROUP OF HARDCORE LOCALS WOULD POP OPEN THEIR LAPTOP COMPUTERS AND TAKE NOTES BUT THE TALK WAS CONFINED MAINLY TO A GROUP OF EARLY ADOPTERS AND DIGITAL FANATICS THESE ARE THE SAME FOLKS WHO HAVE LONG USED THE INTERNET THE GOVERNMENTSUBSIDIZED COMMUNICATIONS NETWORK THAT PROBABLY IS THE MOST IMPORTANT EXISTING MODEL FOR WHAT IS TO COME AND JUST ABOUT IMPOSSIBLE FOR MANY PEOPLE TO UNDERSTAND AND USE THEN ABOUT 18 MONTHS AGO EVERYTHING CHANGED THE HOLLYWOOD BUZZ SWITCHED FROM LAMBORGHINIS TO POWERBOOK COMPUTERS WHILE TECHNOLOGICAL ADVANCES HAD SOMETHING TO DO WITH IT PERSONALITIES WERE EVEN MORE CRITICAL PROBABLY THE TWO MOST IMPORTANT WERE THE WELLKNOWN MR DILLER A CREATURE OF THE OLD HOLLYWOOD AND TECHNOEVANGELIST WM TRIP HAWKINS FROM SILICON VALLEY BOTH MEN UNDERSTOOD HOW TO WORK THEIR COLLEAGUES AND THE MEDIA AND THEY GOT THE WORD TO HOLLYWOOD AND TO WALL STREET THINK DIGITAL THINK INTERACTIVE THINK MULTIMEDIA MR HAWKINS MAY NOT BE A HOUSEHOLD NAME BUT AMONG THE HOLLYWOOD HORDES ATTENDING WHAT SEEMED TO BE ALMOST WEEKLY HIGHTECH SEMINARS HE BECAME A KEY SYMBOL OF THE POSSIBILITIES OF AN INTERACTIVE FUTURE THE CHARISMATIC BUSINESSMAN HAD BEEN ONE OF THE FIRST EMPLOYEES AT APPLE COMPUTER INC HE HAD FOUNDED A 1 BILLION ENTERTAINMENTSOFTWARE COMPANY ELECTRONIC ARTS INC AND WHEN HE STARTED ANOTHER NEW FIRM 3DO CO OF REDWOOD CITY CALIF TO CREATE A NEW VIDEOGAME SYSTEM THAT WOULD BE A SPRINGBOARD FOR OTHER INTERACTIVE PURSUITS HE ATTRACTED SUCH INVESTORS AS JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO AND ITS MCA INC UNIT AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK AND TIME WARNER INC NEW YORK WHETHER ONE BELIEVES THAT MR HAWKINS IS A BRILLIANT ENTREPRENEUR OR A SLICK SALESMAN AND THERE ARE PLENTY OF PEOPLE IN BOTH CAMPS HE GALVANIZED THE BUSINESS COMMUNITY WHEN 3DO WENT PUBLIC A YEAR AGO IT WAS ONE OF THE HOTTEST STOCK OFFERINGS OF THE YEAR WHATEVER HAPPENS TO HIS COMPANY AND SOME CYNICS ALREADY ARE WRITING ITS OBITUARY MR HAWKINS WILL BE A REMINDER THAT THERE WON'T BE MUCH OPPORTUNITY IN THE DIGITAL FUTURE WITHOUT LARGESCALE RISKTAKING THE OTHER POSTER BOY OF THE DIGITAL REVOLUTION MR DILLER HAS GONE EVEN FURTHER THAN MR HAWKINS AS THE STUDIO CHIEF AT PARAMOUNT AND NEWS CORP'S TWENTIETH CENTURY FOX WHO MADE MANY SUCCESSFUL MOVIES AND STARTED A FOURTH TV NETWORK HIS STATURE IN HOLLYWOOD IS UNPARALLELED FELLOW MOGULS TRUST HIM BECAUSE HE HAS MADE HIT FILMS STILL HOLLYWOOD'S PRIMARY ORDER OF BUSINESS WHEN HE THREW HIS LOT IN WITH THE DIGITAL FUTURE BY INVESTING IN WEST CHESTER PABASED QVC AND ITS HOMESHOPPING CHANNEL PEOPLE TOOK NOTICE THE ULTIMATELY UNSUCCESSFUL BATTLE FOR PARAMOUNT THAT HE WAGED AGAINST VIACOM INC KEPT THE TOPIC CENTER STAGE THE TOPIC HAS STAYED SO CENTER STAGE THAT MANY PARTICULARLY IN HOLLYWOOD ALREADY ARE BURNED OUT ON THE SUBJECT THIS IS A MALADY THAT CAN BE CAUSED BY HEARING TOO MANY INFORMATIONSUPERHIGHWAY METAPHORS SUCH AS ON RAMP AND ROAD KILL OR BY GOING TO TOO MANY SEMINARS WITH THE WORD DIGITAL IN THEIR TITLE OR BY SEEING TOO MANY DEMOS THAT CONSIST OF PRIMITIVE CARTOON CHARACTERS GRUNTING AND KICKBOXING OR BY PICKING UP JUST ABOUT ANY PUBLICATION AND READING LOFTY ELOQUENT TOMES ABOUT WHAT TURNS OUT TO BE A NEW WAY TO ORDER PIZZA OR WATCH BEAVIS AND BUTTHEAD IT USED TO BE JUST A MERRY BAND OF VISIONARIES MOSTLY COMPUTER HARDWARE AND SOFTWARE PEOPLE SAYS CHRISTOPHER MURRAY AN ENTERTAINMENT ATTORNEY IN LOS ANGELES NOW EVERYBODY'S SELLING SOMETHING MR KATZENBERG OF DISNEY RECENTLY DUG OUT AND WAVED A TIME MAGAZINE COVER STORY HEADLINED MAN OF THE YEAR THE COMPUTER THE YEAR WAS 1983 AND THE MESSAGE WAS CLEAR THE MEDIA LIKE TO HYPE THINGS WELL BEFORE THEY AFFECT THE VAST MAJORITY OF PEOPLE AND THERE'S NO DOUBT THAT HUCKSTERS HYPESTERS AND INSTANT EXPERTS ABOUND A TV NETWORK TOUTS A NEW INTERACTIVE EXPERIENCE IT TURNS OUT TO BE A 900 NUMBER ENCOURAGING VIEWERS TO PAY TO VOTE TO NAME THE BABY OF A SITCOM CHARACTER WALL STREET HAS TO HAVE A MULTIMEDIA ANGLE FOR ANY NEW ENTERTAINMENT STARTUP STICK THE WORD INTERACTIVE INTO A PROSPECTUS AND IT HAS A BETTER CHANCE OF MAKING IT DEALMAKERS SAY ADDS JEFF BERG CHAIRMAN OF INTERNATIONAL CREATIVE MANAGEMENT A TALENT AGENCY IN NEW YORK AND LOS ANGELES THERE ARE DEALS BEING MADE NOW IN REAL TERMS AND FOR REAL DOLLARS BUT THERE ARE OTHER DEALS THAT ARE SPECULATIVE BUT HE AND OTHERS SAY NO ONE WANTS TO WIND UP LIKE PEGGY LEE WHO HAD TO SUE TO GET SOME ADDITIONAL RETURN FROM THE MUSIC AND VOICE WORK SHE DID FOR DISNEY'S ANIMATED LADY AND THE TRAMP THE FILM BROUGHT IN MILLIONS FROM ITS HOMEVIDEO RELEASE DECADES AFTER IT WAS MADE HOLLYWOOD'S BIGGEST CONCERN THOUGH IS THAT IT'S ALL REAL AND THAT THE TRADITIONAL ENTERTAINMENT INDUSTRY WON'T BE THE ONE TO CASH IN MARK STAHLMAN A FORMER SECURITIES ANALYST WHO CONSULTS ON NEW MEDIA IN NEW YORK LONG HAS ARGUED THAT PRODUCERS OF NEW INTERACTIVE ENTERTAINMENT WILL COME FROM OUTSIDE HOLLYWOOD WHICH HE BELIEVES ISN'T ENTREPRENEURIAL ENOUGH THE VIDEOGAME BUSINESS PROVIDES AN INSTRUCTIVE PRECEDENT MR STAHLMAN AND OTHERS SAY CERTAIN VIDEO GAMES BASED ON FILMS SUCH AS ALADDIN AND TERMINATOR 2 JUDGMENT DAY HAVE DONE WELL RECENTLY JURASSIC PARK CAPTURED ABOUT 2 MILLION FOR THE RIGHTS TO TRANSLATE THE BLOCKBUSTER FILM INTO A VIDEO GAME BUT THOSE WERE THE EXCEPTIONS MCA PRESIDENT SIDNEY SHEINBERG RECALLS THAT MORE THAN A DECADE AGO THE THENREIGNING BOX OFFICE CHAMP ET THE EXTRATERRESTRIAL WAS LICENSED TO ATARI GAMES FOR 24 MILLION THE FILM WAS GREAT THE VIDEO GAME WAS LOUSY AND STORES COULDN'T GIVE IT AWAY MORE RECENTLY BRAM STOKER'S DRACULA EVEN WITH ENORMOUS HELP FROM THE FILMMAKERS WASN'T A MAJOR GAME HIT NOR WAS CLIFFHANGER ACTUALLY HOLLYWOOD HAS PRETTY MUCH MISSED OUT ON THE VIDEOGAME BOOM INSTEAD GAME MAKERS TAP OTHER SOURCES FOR IDEAS PARTICULARLY SPORTS FIGURES OR VIDEO ARCADES THE BIRTHPLACE OF SUPERSELLING SUPERGORY MORTAL KOMBAT ANOTHER OMINOUS SIGN THE SWIFTLY CHANGING CONTROL OVER ENTERTAINMENT DISTRIBUTION ENTERTAINMENT MOGULS HAVE HAD AN UPANDDOWN RELATIONSHIP WITH THE CABLE INDUSTRY BUT AT LEAST THEY KNEW THE PLAYERS THE GAME SEEMED TO CHANGE HOWEVER WHEN BELL ATLANTIC ANNOUNCED ITS PLANS TO ACQUIRE TCI EVEN THOUGH THAT DEAL FELL THROUGH OTHER ALLIANCES CONTINUE TO BE MADE NYNEX CORP OF WHITE PLAINS NY PUT A MAJOR INVESTMENT INTO VIACOM SOUTHWESTERN BELL CORP OF ST LOUIS FORMED A CABLE VENTURE WITH COX ENTERPRISES INC ATLANTA AND TIME WARNER GOT A 25 BILLION INVESTMENT IN ITS CABLE AND ENTERTAINMENT BUSINESSES FROM U S WEST INC OF DENVER SOME OBSERVERS WONDER WHETHER THERE WILL BE MANY MAJOR INDEPENDENT CABLE OPERATORS LEFT BY YEAR'S END NO ONE IS SURE WHAT IT WILL BE LIKE DOING BUSINESS WITH THE NOLONGERSOBABY BELLS IN THE CURRENT RELATIVELY LOWTECH WORLD LOCAL PHONECOMPANY REVENUE IS MORE THAN 100 BILLION MOVIE BOXOFFICE REVENUE IS A COMPARATIVELY PALTRY 5 BILLION WITH HOME VIDEO ADDING ANOTHER 13 BILLION IN FACT MANY PEOPLE THINK THE CURRENT FLATTERING OF HOLLYWOOD ALL THIS TALK ABOUT CONTENT IS KING IS JUST SHORTTERM STROKING DISTRIBUTION WILL BE KING ONCE THE INTERACTIVE FUTURE IS TRULY UNDER WAY THESE PEOPLE SAY HOLLYWOOD MAY BE ONE OF MANY PROVIDERS AND NOT THE MOST IMPORTANT INSTEAD EVEN MORE THAN THE CABLE COMPANIES THE PHONE COMPANIES APPEAR TO BE IN THE DRIVER'S SEAT THOUGH THEY MAY BE PERCEIVED AS UNHIP IN HOLLYWOOD THEIR CULTURE OF UNIVERSAL SERVICE AND COMMON CARRIAGE SEES ENTERTAINMENT AS A FOOTNOTE THEY WANT PEOPLE TO TALK OR INTERACT WITH EACH OTHER AND COLLECT A FEW DIMES EVERY TIME THEY DO THE ENTERTAINMENT PARADIGM IS JUST A HOOK HOW PEOPLE GET INTO IT SAYS ALAN SCHWARTZ COCHAIRMAN OF INVESTMENT BANKING AT BEAR STEARNS & CO IN NEW YORK BUT THE NETWORK WILL BE A COMMUNICATIONS NETWORK AN INFORMATION NETWORK NOT JUST A NEW WAY TO DELIVER TV EVEN THE ENTERTAINMENT PORTION OF THE INTERACTIVE FUTURE MAY BE UP FOR GRABS WITH DIGITAL PRODUCTION BRINGING COSTS DOWN A FILMMAKER MIGHT BE ABLE TO MAKE A MOVIE AND PUT IT ON THE NETWORK BYPASSING THE HOLLYWOOD FAT CATS THE LOGICAL EXTENSION OF VIDEOONDEMAND IS AN A LA CARTE UNIVERSE WHERE A VIEWER COULD HAVE CUSTOMIZED TELEVISION PICKING AND CHOOSING FROM AMONG THE MOST NARROW KINDS OF PROGRAMMING THROUGH THE USE OF INTELLIGENT AGENTS CONTROLLING A TV SET A CONSUMER WILL BE ABLE TO COME HOME AT NIGHT AND THE TV WILL SAY WE KNOW YOU'RE INTERESTED IN OPERA AND THE MAGIC FLUTE' WAS ON BRAVO TONIGHT SO WE TAPED IT SUCH AGENTS SAYS MR DILLER GIVE CONSUMERS THE ABILITY TO FOLLOW UP THEIR CURIOSITY AND TO HAVE INFORMATION THAT INTERESTS THEM SYNTHESIZED AND BROUGHT TO THEM INSTANTANEOUSLY IN THIS WORLD HE SAYS CREATIVE ARTISTS WILL HAVE THE ABILITY TO PROGRAM FOR A NARROW AUDIENCE THE ABILITY TO HAVE AN AUDIENCE GATHERED TOGETHER THAT IS SMALL IN MASSCOMMUNICATIONS TERMS BUT HUGE FOR SOMETHING LIKE BALLET OR PERFORMANCE ART YOU WILL HAVE A CRITICAL MASS THAT WILL ALLOW PEOPLE TO PRODUCE FOR THAT THAT'S NEVER HAPPENED BEFORE PERHAPS BUT DON'T COUNT THE TRADITIONAL PLAYERS OUT JUST YET NARROWCASTING MANY BELIEVE HAS ITS LIMITS WHEN CABLE TELEVISION WAS IN ITS INFANCY MANY FANTASIZED ABOUT AN ABUNDANCE OF CHOICE IT DIDN'T HAPPEN ADULTS GOT CNN TEENS GOT MTV CHILDREN GOT NICKELODEON AND THE PUBLIC LIMITED ITS ACTUAL RANGE OF TV CHOICES TO PERHAPS SEVEN OR EIGHT CHANNELS INSTEAD OF THE OLD THREE OR FOUR THERE STILL IS LOTS OF SHELF SPACE ON MANY EXISTING CABLE SYSTEMS AND LITTLE TO FILL THEM PUBLICACCESS CABLE DIDN'T GENERATE A HUGE BURST OF CREATIVITY FROM THE CITIZENRY IT JUST PUT A LOT OF KOOKS ON THE AIR MOREOVER THE BIG THREE NETWORKS THOUGH A BIT BATTERED STILL COMMAND AROUND A 60 SHARE OF ALL TV VIEWING JUST AS HOMEVIDEO CUSTOMERS SPEND 70 OF THEIR MONEY ON THE TOP 20 TITLES ACCORDING TO VIDEO BUSINESS MAGAZINE THE LESSON EVEN WITH LOTS OF CHOICES OUT THERE AMERICAN AUDIENCES HAVE BEEN CONDITIONED FOR A CERTAIN KIND OF ENTERTAINMENT AND ONLY THE NETWORKS AND MAJOR STUDIOS SPEND THE KIND OF MONEY TO PRODUCE SHOWS THAT HAVE THAT KIND OF MASS APPEAL CONSUMER TASTES IN ENTERTAINMENT ARE BROADLY SIMILAR SAYS STRAUSS ZELNICK FORMER FOX STUDIO PRESIDENT WHO NOW RUNS GAME PRODUCER CRYSTAL DYNAMICS INC THERE'S NO OTHER EXPLANATION FOR HITS SOCIOLOGISTS HAVE NOTED THE IMPORTANCE OF THE WATERCOOLER SYNDROME PEOPLE WANT TO TALK THE NEXT DAY ABOUT WHAT THEY WATCHED ON TV THE NIGHT BEFORE YOU CAN'T MAKE US ALL THESE LITTLE INDIVIDUAL SOVEREIGN STATES SAYS DISNEY'S MR KATZENBERG JUST AS IMPORTANT HOW WILL PEOPLE KNOW WHAT'S AVAILABLE TO WATCH A SOFTWARE NAVIGATOR CAN HELP FIND INFORMATION BUT IT ISN'T GOING TO DIFFERENTIATE BETWEEN JUNK AND GEMS A VITAL ROLE OF THE HOLLYWOOD STUDIOS IN THE DIGITAL FUTURE THEREFORE COULD LIE IN THE AREA OF MARKETING IN THE MOVIE BUSINESS TODAY THE ACTUAL AMOUNT OF MONEY MADE IN THE DOMESTIC MOVIE THEATER IS ONLY ABOUT 20 OF THE TOTAL EXPECTED REVENUE FROM ANY FILM BUT THE BIGSCREEN RUN IS STILL THE MOST IMPORTANT LINK IN THE REVENUE CHAIN BECAUSE THAT'S WHEN THE MOVIE IS IMPRINTED IN PEOPLE'S BRAINS IT'S WHEN MOST OF THE MARKETING DOLLARS ARE ALLOCATED 80 OF IT SPENT ON TV COMMERCIALS WHEN THE TITLE IS STRETCHED ACROSS THOUSANDS OF MARQUEES AND WHAT THE AWARD HOOPLA IS ALL ABOUT EVEN IF PRODUCTION COSTS SOMEHOW DROP BECAUSE OF DIGITAL TRICKS MARKETING WHICH ALREADY COSTS ALMOST AS MUCH AS PRODUCTION DOES WILL CONTINUE TO BE PRICEY A KID WITH A VIDEO CAMERA WON'T BE EMPOWERED BY NEW TECHNOLOGY UNLESS HE CAN GET SOMEBODY TO WATCH HIM WE'LL BECOME MARKETING PARTNERS WITH THE TECHNOLOGY COMPANIES SAYS SCOTT SASSA EXECUTIVE VICE PRESIDENT OF TURNER BROADCASTING SYSTEMS INC WHICH HAS STARTED ITS OWN MOVIE COMPANY THROUGH RECENT ACQUISITIONS IN A SENSE WE'RE PROMOTERS MOVIEMAKERS AND DISTRIBUTION COMPANIES ALSO ARE CONVINCED THAT IF THE VIEWING UNIVERSE BECOMES TOO FRAGMENTED TO MAKE MUCH MONEY OFF THE PROGRAMS THEMSELVES THEY WILL BE ABLE TO SELL PRODUCTS ALONG WITH THEIR SHOWS AS BEAR STEARNS'S MR SCHWARTZ SAYS THE TRICK OF THE FULLSERVICE NETWORK IS YOU WATCH JURASSIC PARK' THEN YOU BUY A JURASSIC PARK' TSHIRT ANOTHER SCENARIO PROMOTED BY ORACLE CORP OF REDWOOD CITY CALIF HAS THE STUDIOS PROFITING BECAUSE THEY WOULDN'T HAVE TO PAY THE 50 CUT THEY TRADITIONALLY HAVE GIVEN TO THEATER OWNERS CABLE OPERATORS AND VIDEO RETAILERS UNDER THIS PLAN STUDIOS WOULD BUY THEIR OWN ELECTRONIC STORAGE AND DELIVERY DEVICE KNOWN AS A SERVER IF EVERYBODY IN THE FUTURE IS WIRED STUDIOS WILL BE ABLE TO ZAP THEIR WARES DIRECTLY TO CONSUMERS ORACLE HAS A VESTED INTEREST IN THE THEORY IT HOPES TO SELL HUGE VIDEO SERVERS TO THE STUDIOS FOR 15 MILLION TO 25 MILLION EACH IF A STUDIO HAS ITS OWN SERVER SAYS TERENCE J GARNETT SENIOR VICE PRESIDENT OF NEW MEDIA THE ONLY COST TO THEM IS THE TELEPHONE LINE CHARGE NO MIDDLEMAN MOREOVER HE ADDS THEY'LL HAVE PRIVATE ACCESS TO ALL SORTS OF DEMOGRAPHIC INFORMATION ABOUT CONSUMERS WHO PLUG IN BUT CAN THIS VIDEOONDEMAND AN UPDATE OF THE DECADEOLD PAYPERVIEW BE PRICED COMPETITIVELY MOVIES ALREADY RENT FOR 2 OR LESS AND OFTEN SELL DISCOUNTED FOR AS LITTLE AS 7 LESS FOR OLDER TITLES FURTHER SAYS MCA'S MR SHEINBERG I SEEM TO REMEMBER THAT YOU CAN PAY A PRETTY HEFTY FEE FOR 2 1/2 HOURS OF USING THE PHONE SO IT COMES BACK TO THE ORIGINAL UNKNOWN WHERE ARE WE HEADING COMPANIES HAVE PLENTY OF REASONS TO BE EXCITED AND JUST AS MANY REASONS TO BE WORRIED AND EVERY MOVE FORWARD JUST BRINGS MORE QUESTIONS WILL FOR INSTANCE THE DIGITAL FUTURE CREATE AN INTELLECTUAL ELITE SEPARATING PEOPLE INTO INFORMATION HAVES AND HAVENOTS WILL PRIVACY BE PROTECTED AS IT IS BY AND LARGE ON PHONE LINES WILL DIRECTBROADCAST SATELLITES FURTHER MUDDY THE PICTURE HOLLYWOOD HAS MAJOR CONCERNS ABOUT COPYRIGHTS IF CONSUMERS CAN SEND VIDEO TO EACH OTHER AND INSTANTLY RECORD IT HOW DO COPYRIGHT HOLDERS PROTECT THEIR FILMS AND TV SHOWS THIS HAS NEVER HAPPENED BEFORE SAYS MR MURRAY THE ENTERTAINMENT LAWYER IT'S IMPRACTICAL TO PHOTOCOPY A BESTSELLING NOVEL ONE THING IS SURE THE TWISTS AND TURNS THAT THE PATH TO THE DIGITAL FUTURE TAKES WILL BE ENTERTAINING IN THEMSELVES IT'S GOING TO TAKE A WHILE TO TURN A RAW UNTAMED TECHNOLOGY INTO A COMPELLING MEDIUM SAYS PAUL SAFFO A DIRECTOR OF THE INSTITUTE FOR THE FUTURE IN MENLO PARK CALIF BUT AS THIS EVOLVES IT'S GOING TO BE FULL OF SURPRISES THAT WILL DELIGHT THE CONSUMER AND CONFOUND A LOT OF BUSINESS EXECUTIVES MR TURNER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9403210082 940321 CANADIAN PACIFIC FOREST PRODUCTS MONTREAL CANADIAN PACIFIC FOREST PRODUCTS LTD SAID SHAREHOLDERS APPROVED THE COMPANY'S PROPOSAL TO CHANGE ITS NAME TO AVENOR INC CP FOREST WAS REQUIRED TO ADOPT A NEW NAME FOLLOWING LAST YEAR'S SALE BY CANADIAN PACIFIC LTD OF ITS CONTROLLING STAKE IN THE FORESTPRODUCTS COMPANY THE NEW NAME COMBINES THE LATIN ROOT FOR ADVANTAGE AND THE WORD NORTH AVENOR'S STOCK WILL BE LISTED ON THE TORONTO AND MONTREAL EXCHANGES AS AVR 9403210081 940321 BUSINESS BRIEF ABN AMRO HOLDING NV MEESPIERSON UNIT REGISTERS 42 RISE IN '93 NET PROFIT DUTCH MERCHANT BANK MEESPIERSON NV SAID NET PROFIT ROSE 42 IN 1993 AND THAT EXCLUDING EXTRAORDINARY ITEMS EARNINGS SURGED BECAUSE OF BUOYANT STOCK MARKETS AND FALLING INTEREST RATES MEESPIERSON IS A SUBSIDIARY OF THE NETHERLANDS' LARGEST BANKING GROUP ABN AMRO HOLDING NV IT IS THE PRODUCT OF THE 1993 MERGER OF BANK MEES & HOPE NV AND PIERSON HELDRING & PIERSON NV THE COMPANY SAID NET PROFIT LAST YEAR GAINED TO 223 MILLION GUILDERS 1174 MILLION FROM THE YEAREARLIER 214 MILLION GUILDERS THE YEAREARLIER FIGURES ARE RESTATED FOR THE DISPOSAL OF THE COMPANY'S LEASE PLAN HOLDING SUBSIDIARY BUT EXCLUDING EXTRAORDINARY ITEMS IN BOTH REPORTING YEARS OPERATING PROFIT ROSE 45 IN 1993 TO 211 MILLION GUILDERS FROM 146 MILLION GUILDERS THE COMPANY NOTED 9403210080 940321 MRS SAITO BUYS AMERICAN BY MARIE D'AGUANNO ITO TOKYO IF ONLY THE AVERAGE MRS SAITO COULD DUMP OUT HER HANDBAG FULL OF M&MS SNICKERS HALL'S COUGH DROPS CLORETS WRIGLEY'S GUM AND POLIDENT DENTURE CREAM ON THE DESK OF ONE OF THE LEGION OF US JAPAN BASHERS THEN THEY MIGHT SEE HOW THEY MISLEAD THE AMERICAN PUBLIC BY GRIPING ABOUT JAPAN'S CLOSED MARKETS IN THE SUBURBS OF TOKYO THE ONLY AMERICANS YOU'RE LIKELY TO RUN INTO ARE PLASTIC STATUES OF COLONEL SANDERS AND RONALD MCDONALD YET THE AVERAGE MRS SAITO CAN BUY JOHNSON & JOHNSON PRODUCTS EVERYWHERE LOTIONS AND BABY SHAMPOOS PLAX QTIPS AND BANDAIDS COMPETE FOR SHELF SPACE IN SUBURBAN STORES WITH HELENE CURTIS HAIRCARE PRODUCTS PAMPERS COLGATE TOOTHPASTE AND GILLETTE RAZORS NOT LONG AGO THE KLEENEX PEOPLE BEGAN WIDELY MARKETING PAPER TOWELS FOR THE FIRST TIME AND NOW JAPANESE FAMILIES CAN'T REMEMBER HOW THEY SURVIVED WITHOUT THEM US COMPANIES SEEM ALSO TO HAVE LARGELY TAKEN OVER THE MAINTENANCE OF THE SAITO FAMILY PET STORE SHELVES HERE ARE LINED WITH PRODUCTS FROM PEDIGREE KALKAN AND GAINES THE BAG WITH THE FAMILIAR PURINA COLLIE CAN BE FOUND IN STORES EVERYWHERE SOMEWHAT MYSTERIOUSLY THOUGH THE WORDS DOG CHOW FOR ENGLISH READERS HAVE BEEN MATCHED WITH THE JAPANESE TRANSLATION PLEASANT FOOD CONTRARY TO THE COMPLAINT THAT AMERICAN PRODUCTS GATHER DUST AT THE BACK OF SHOPS US BRANDS ARE OFTEN POSITIONED OUT FRONT PRESUMABLY BECAUSE THEY HELP TO LURE CUSTOMERS INSIDE IN THE FOOD AND COOKWARE SECTIONS OF DEPARTMENT STORES USMADE PRODUCTS ARE OFTEN LABELED WITH SMALL AMERICAN FLAGS IT SEEMS UNLIKELY THAT JAPANESE MERCHANDIZERS FLY THE STARS AND STRIPES BECAUSE THEY THINK IT DRIVES CUSTOMERS AWAY JUST THE OPPOSITE IN OTHER CASES US MANUFACTURERS BEND OVER BACKWARD TO BLEND INTO THE JAPANESE CONSUMER LANDSCAPE WHILE SHOPPING MRS SAITO WILL FIND AN INDISPENSABLE CLEANER CALLED KABIKIRA LITERALLY MOLDKILLER WHICH IS RECOMMENDED BY JAPANESE HOUSEWIVES AS THE BEST WAY TO ATTACK THE VARIOUS FORMS OF MOLD THAT COLLECT IN JAPANESE HOMES KABIKIRA IS MADE BY THE SAME US COMPANY THAT MAKES THAT OLD STANDBY JOHNSON WAX BUT UNLESS MRS SAITO SEARCHED OUT THE CORPORATE LOGO SHE'D NEVER SUSPECT SHE'S KIRING HER KABI WITH AN AMERICAN PRODUCT THERE ARE LARGE TWOSTORY MCDONALD'S RESTAURANTS IN EVERY MAIN SHOPPING DISTRICT IN TOKYO IN THE SUBURBS MCMUFFINS AND HAPPY MEALS ARE SOLD WITH MCRICE CAKES AND MCFISH CAKES OR WITH MISO SOYBEAN PASTE AND SEAWEED SOUP KENTUCKY FRIED CHICKEN COMPETES WITH WENDY'S DENNY'S SHAKEY'S PIZZA DUNKIN' DONUTS SUBWAY FAMOUS AMOS MRS FIELDS' COOKIES AND BURGER KING ON THE STREETS IN THE AFTERNOON MOTORCYCLES WHIZ AROUND DELIVERING DOMINO'S PIZZA TO HOMES AROUND TOKYO ON TELEVISION IN THESE HOMES A UBIQUITOUS COMMERCIAL FEATURES ATTRACTIVE SMILING JAPANESE YOUNGSTERS SINGING I FEEL COKE REFLECTING A COMMON PERCEPTION AMONG MARKETERS THAT ENGLISH SELLS EVEN IF IT DOESN'T MAKE SENSE NEXT UP MAY BE A COMMERCIAL FOR TOILET DUCK AN AMERICANMADE BLUE LIQUID BOWL CLEANER THE ANIMATED TOILET DUCK FLIES ACROSS THE BATHROOM AND PLONKS ITS HEAD HAPPILY DOWN INTO THE TOILET ALSO APPEALING TO THE JAPANESE DELIGHT IN ANYTHING CUTE THE JOLLY GREEN GIANT AND HIS CARTOON ELVES DO MORE OF THE HARD WORK SELLING FROZEN VEGETABLES HERE THAN THEY EVER DID IN THE STATES HOLLYWOOD HAS LANDED IN FORCE AS WELL HAWKING BOTH ITS OWN MOVIES AND US CONSUMER PRODUCTS THE COMEDIAN EDDIE MURPHY SELLS COFFEE ON TELEVISION AND A LOOKALIKE OF ACTRESS DEMI MOORE PROMOTES AMERICAN LUX SOAP REPEATING THE MANTRA I'M STYLISH I'M STYLISH I'M STYLISH THE JAPANESE LOVE AMERICAN MOVIE CULTURE AND MOVIE STARS THE ALLTIME FAVORITE BEING AUDREY HEPBURN ONE THEATER IN TOKYO HAS DEVOTED ITSELF TO SHOWING HER FILMS SINCE HER DEATH LAST YEAR CARY GRANT ELVIS PRESLEY AND MARILYN MONROE ARE ALSO FAVORITES SNOOPY AND THE DISNEY CHARACTERS APPEAR TO BE AS MUCH A PART OF JAPAN'S CULTURE AS AMERICA'S IBM JAPAN HAS BEEN HERE SO LONG THAT MOST PEOPLE FORGET IT'S AN AMERICAN COMPANY THE NEW IBM THINKPAD IS SO POPULAR THAT DEMAND HAS FAR OUTPACED PRODUCTION AND LIKE HER COUNTERPARTS AROUND THE PLANET MRS SAITO DIGS INTO HER PURSE FOR HER VISA MASTERCARD OR AMERICAN EXPRESS WHEN IT COMES TIME TO PAY FOR ALL HER GOODIES HARDLY AWARE OF THE DOMINANCE OF US COMPANIES IN THE GLOBAL PAYMENTS SYSTEM IN SHORT IT IS PRETTY EASY FOR THE AVERAGE MRS SAITO TO BUY AMERICAN IN JAPAN THE VISIBLE SUCCESS OF SO MANY AMERICAN PRODUCTS LEAVES ONE WONDERING WHY THESE COMPANIES ARE SILENT IN LIGHT OF THE CLINTON ADMINISTRATION'S BASHING OF JAPAN ONE GUESS IS THAT THE PAINSTAKING EFFORTS THAT LIE BEHIND THESE SUCCESS STORIES ARE TANTAMOUNT TO TRADE SECRETS BUT BEFORE ALOT MORE US COMPANIES COME COMPLAINING ABOUT THE CLOSED NATURE OF THE JAPANESE MARKET THEIR EXECUTIVES MIGHT PAY A VISIT AND DO SOME INDEPENDENT RESEARCH MAYBE THEY COULD START BY SENDING SOME OF THEIR PEOPLE ON A SHOPPING TRIP TO ANY JAPANESE DEPARTMENT STORE MS D'AGUANNO ITO RECENTLY MOVED TO TOKYO FROM WASHINGTON DC 9403210079 940321 BUSINESS BRIEF MARCUM NATURAL GAS SERVICE INC ACQUISITION OF METRETEK INC FOR NEW STOCK IS COMPLETED MARCUM NATURAL GAS SERVICE INC DENVER SAID IT CLOSED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF METRETEK INC FOR STOCK VALUED AT ABOUT 165 MILLION MARCUM A PROVIDER OF PRODUCTS AND SERVICES TO THE NATURAL GAS INDUSTRY SAID IT ACQUIRED METRETEK FOR 2350000 SHARES OF NEWLY ISSUED MARCUM COMMON STOCK WHICH INCLUDED 234889 SHARES RESERVED FOR EXERCISE OF STOCK OPTIONS MARCUM SAID METRETEK A MELBOURNE FLA MANUFACTURER AND SUPPLIER OF ELECTRONIC DATA COLLECTION SYSTEMS USED BY NATURAL GAS UTILITY COMPANIES HAS BECOME A SUBSIDIARY OF MARCUM METRETEK PREVIOUSLY ANNOUNCED IT EXPECTS TO REPORT NET INCOME OF 13 MILLION ON 128 MILLION IN REVENUE FOR ITS FISCAL YEAR ENDED JAN 28 MARCUM SAID MARCUM ALSO NAMED ALBERT F THOMASSON 52 YEARS OLD TO ITS BOARD INCREASING THE NUMBER OF DIRECTORS TO NINE MR THOMASSON HAD BEEN METRETEK'S CHAIRMAN 9403210078 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT WHERE THE MONEY IS EARLY CASUALTY PHILIPS ELECTRONICS' CDI PLAYER WAS ONE OF THE FIRST ENTRANTS IN THE MULTIMEDIA SWEEPSTAKES SO FAR IT HASN'T HIT THE JACKPOT BY MARTIN DU BOIS AND CACILIE ROHWEDDER EINDHOVEN THE NETHERLANDS PHILIPS ELECTRONICS NV HAS BUILT ITS REPUTATION ON SOBERLY DESIGNED TELEVISIONS ELECTRIC RAZORS AND LIGHT BULBS SO WHY IS IT BETTING ITS FUTURE ON ZOMBIE DINOS VOYEUR AND LASER LORDS BECAUSE IT SEES THE COMPACT DISKINTERACTIVE PLAYER WHICH PLAYS THOSE TITLES AS ITS MOST PROMISING CONSUMER PRODUCT AND ITS ENTRY INTO THE UNCHARTED MULTIMEDIA WORLD THE DUTCH ELECTRONICS GIANT WAS ONE OF THE FIRST COMPANIES IN THE WORLD TO INVEST IN MULTIMEDIA AND AMONG THE FIRST TO FIND OUT IT ISN'T EASY MAKING MONEY IN THE FIELD CDI SALES HAVE BEEN SLOW A TOTAL OF JUST 300000 PLAYERS WORLDWIDE SINCE THE MACHINES WERE INTRODUCED 2 1/2 YEARS AGO MANY CONSUMERS REMAIN UNAWARE OF THE TECHNOLOGY OR CONFUSED BY IT AND LIMITED DISK OFFERINGS HAVE LEFT OTHERS UNCONVINCED THAT THE FORMAT WILL SURVIVE PHILIPS IS TRYING TO SALVAGE THE MARKET BY INCREASING ADVERTISING AND DEVELOPING SCORES OF CDI GAMES AND EDUCATIONAL PROGRAMS CDI MACHINES PLAY SPECIAL COMPACT DISKS THAT TURN VIEWERS INTO PARTICIPANTS ALLOWING THEM TO INFLUENCE AND INTERACT WITH WHAT THEY SEE AND HEAR THE BASIC MACHINE WHICH LOOKS LIKE A SIMPLIFIED VCR IS PRICED AT ABOUT 400 TO USE THE MACHINE FOR WATCHING VIDEOS BUYERS MUST SHELL OUT ANOTHER 250 FOR A POWERBOOSTING CARTRIDGE ONCE IT'S HOOKED UP TO THE TV USERS CHOOSE WHAT THEY WANT TO SEE BY MANIPULATING AN ONSCREEN ARROW AND LITTLE SYMBOLS CALLED ICONS WITH A REMOTE CONTROL THAT HAS A JOYSTICK OR TRACKBALL SIMPLE ENOUGH FOR A FOURYEAROLD CDI USERS CAN PLAY MOREPOWERFUL GAMES THAN KIDS ARE USED TO AT HOME POPULAR ARCADE GAMES SUCH AS MAD DOG MCCREE OR THE 7TH GUEST AN INTERACTIVE VERSION OF THE BOARD GAME CLUE THEY CAN GO ON A VIDEO TOUR OF THE LOUVRE STUDY AN INTERACTIVE ENCYCLOPEDIA COMPLETE WITH OLD KENNEDY NEWSREELS AND MUSICAL EXCERPTS OF BEETHOVEN'S NINTH SYMPHONY OR EVEN FOLLOW A BRAINSURGERY COURSE THE CDI FORMAT ALSO OFFERS INTERACTIVE MOVIES LIKE VOYEUR A PHILIPS RELEASE IT'S ABOUT A SINISTER PRESIDENTIAL CANDIDATE THE VIEWER WHO LIVES NEXT DOOR SHAPES THE PLOT BY PEERING INTO DIFFERENT WINDOWS OF HIS HOUSE CDI MACHINES HAVE MUCH IN COMMON WITH CDROM PLAYERS WHICH ENJOY WIDER ACCEPTANCE BOTH GIVE USERS ACCESS TO VAST AMOUNTS OF MULTIMEDIA INFORMATION ON COMPACT DISKS BUT CDROM MACHINES MUST BE CONNECTED TO PERSONAL COMPUTERS WHICH HAVE MORELIMITED VIDEO CAPABILITY THAN TELEVISIONS PHILIPS OFFICIALS SAY THAT DIFFERENCE POINTS UP ONE OF CDI'S STRENGTHS EASE OF USE ALTHOUGH THERE'S A COMPUTER INSIDE WE DON'T MENTION IT SAYS FRANS SPEIJER A PHILIPS MARKETING MANAGER FOR INTERACTIVE PRODUCTS COMPUTERS SCARE PEOPLE OFF ANOTHER SELLING POINT IS VERSATILITY IN ADDITION TO GAMES ENCYCLOPEDIAS AND INTERACTIVE MOVIES OWNERS CAN USE THEIR CDI MACHINES TO LISTEN TO CONVENTIONAL MUSIC CDS FLIP THROUGH A DIGITAL FAMILY PHOTO ALBUM AND WATCH NONINTERACTIVE MOVIES WITH CDQUALITY SOUND AND PICTURES BETTER THAN VIDEOCASSETTES THOUGH NOT AS SHARP AS ORDINARY LASER DISKS SO FAR THOUGH CDI HASN'T GAINED BROAD ACCEPTANCE MORE THAN TWOTHIRDS OF CDI OWNERS HAVE CHILDREN PHILIPS SAYS BUT IN THE NETHERLANDS FOR EXAMPLE MOST OWNERS ARE ALSO TECHNOPHILES TWOTHIRDS OWN PCS AND 77 HAVE CAR PHONES ACCORDING TO PHILIPS MARKETING DATA AND RETAILERS SAY THE PAUCITY OF SOFTWARE PHILIPS NOW DISTRIBUTES ONLY 150 INTERACTIVE TITLES IN THE CDI FORMAT PLUS ABOUT 80 NONINTERACTIVE MOVIES HAS MADE IT HARD TO WIN A WIDER FOLLOWING IT'S NOT EXACTLY A BESTSELLER SAYS WOLFGANG KIRSCH DEPUTY PURCHASING DIRECTOR AT MEDIAMARKTSATURN A UNIT OF GERMANY'S KAUFHOF AG DEPARTMENTSTORE CHAIN WITH 47 STORES THROUGHOUT GERMANY MEDIAMARKT SOLD ONLY 95 CDI PLAYERS LAST YEAR MR KIRSCH SAYS THERE'S NEVER ENOUGH SOFTWARE ADDS VICTOR JACHIMOVICZ MARKETING STRATEGIST WITH FNAC A PARISBASED CHAIN OF 46 CONSUMERELECTRONICS AND MUSIC STORES IN FOUR EUROPEAN COUNTRIES THIS ISN'T THE FIRST TIME PHILIPS HAS FARED BETTER AT DEVELOPING A TECHNOLOGY THAN AT MARKETING IT THOUGH THE COMPANY ALMOST SINGLEHANDEDLY INVENTED THE AUDIO CASSETTE THE VIDEOCASSETTE RECORDER AND THE COMPACT DISK IT GOT CAUGHT UP IN COSTLY STANDARDS BATTLES WITH OTHER MANUFACTURERS DURING THE 1970S AND 1980S AND HAD TROUBLE PROFITING FROM ITS INVENTIONS IN RECENT YEARS PHILIPS PUMPED A LOT OF TIME ENERGY AND MONEY INTO EUROPE'S HIGHDEFINITIONTELEVISION PROJECT IT PROVED TO BE A COSTLY WHITE ELEPHANT THE DEVELOPMENT OF AFFORDABLE HDTV PROGRAMMING TRAILED YEARS BEHIND THE HARDWARE DEVELOPED BY PHILIPS PHILIPS INVENTED THE CDI CONCEPT JOINTLY WITH SONY CORP IN 1986 BUT IT HAD TROUBLE DECIDING EXACTLY WHAT THE TECHNOLOGY'S PURPOSE SHOULD BE AND DIDN'T BEGIN SELLING THE MACHINES FOR FIVE YEARS MANY CONSUMERS STILL AREN'T SURE WHETHER CDI IS A VIDEO PLAYER A HOME COMPUTER OR A GAME CONSOLE WHETHER IT'S A TOY OR A TOOL THE ANSWER FROM PHILIPS'S MARKETING GURUS IT'S ALL THOSE THINGS IN ONE TO GET THAT MESSAGE OUT PHILIPS IS RUNNING ITS FIRST TV ADS FOR CDI IN EUROPE AND THE US AND WITH ITS HDTV TROUBLES HAVING MADE CLEAR THE IMPORTANCE OF PROGRAMMING THE COMPANY IS MAKING A BIG PUSH TO INCREASE THE NUMBER OF CDI TITLES AVAILABLE PHILIPS IS DEVELOPING SOFTWARE ON ITS OWN AND FORMING PARTNERSHIPS WITH SOFTWARE PUBLISHERS SUCH AS HACHETTE SA OF FRANCE AND GENERAL MAGIC INC A MOUNTAIN VIEW CALIF CONSORTIUM BY THE END OF THE YEAR PHILIPS SAYS 100 NEW CDI TITLES WILL BE AVAILABLE IN STORES AND MORE ARE IN THE PIPELINE THE 80 CONVENTIONAL MOVIES NOW AVAILABLE ON CDI INCLUDE SOME BIG HITS WITH CONTINUED APPEAL SUCH AS TOP GUN AND STAR TREK VI TO EXPAND ITS LIBRARY PHILIPS HAS FORMED JOINT VENTURES WITH PARAMOUNT PICTURES AND OTHER STUDIOS AND POLYGRAM NV A MUSIC PUBLISHER 80OWNED BY PHILIPS IS MOVING INTO MOVIES PREDICTING A BOOM WITH THE NUMBER OF CDI TITLES POISED FOR FAST GROWTH JOHN HAWKINS PRESIDENT OF PHILIPS'S INTERACTIVEMEDIA DIVISION BOLDLY PREDICTS THAT ONE MILLION HOUSEHOLDS WORLDWIDE WILL OWN CDI SYSTEMS BY YEAR'S END MANY RETAILERS SAY CDI STILL HAS PROMISE AND THEY'RE DOING THEIR BEST TO HAWK IT WE CAN'T OVERLOOK A MAJOR NEW TECHNOLOGY SAYS A SPOKESWOMAN FOR DIXONS GROUP PLC WHICH OWNS 850 DIXONS AND CURRYS CONSUMERELECTRONICS STORES IN BRITAIN THERE IS A LOT OF POTENTIAL THERE SHE SAYS ADDING THAT SINCE CHRISTMAS DIXONS HAS BEEN FEATURING ITS CDI DEMONSTRATION STANDS MORE PROMINENTLY BY NEXT CHRISTMAS HOWEVER COMPETITION MAY HAVE HEATED UP SUBSTANTIALLY 3DO CORP OF REDWOOD CITY CALIF PLANS TO START SELLING ITS INTERACTIVE GAME MACHINE IN EUROPE AND JAPAN THIS YEAR THE 500 PLAYER INTRODUCED IN THE US IN OCTOBER HAS BECOME CDI'S BIGGEST COMPETITOR WITH SALES ANALYSTS ESTIMATE AT 10000 UNITS THOUGH PHILIPS CLAIMS THE RIVAL MACHINE IS INFERIOR IN PICTURE QUALITY AND EASE OF USE 3DO HAS THE SUPPORT OF NEW YORKBASED AMERICAN TELEPHONE & TELEGRAPH CO AND TIME WARNER INC AND MATSUSHITA ELECTRIC INDUSTRIAL CO OF JAPAN THE BATTLE TO ESTABLISH THE WORLD STANDARD IN THE INTERACTIVE MULTIMEDIA BUSINESS HAS ONLY JUST BEGUN MR DU BOIS AND MS ROHWEDDER ARE STAFF REPORTERS IN THE WALL STREET JOURNAL'S BRUSSELS BUREAU 9403210077 940321 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT DELAWARE MANAGEMENT HOLDING INC 180 MILLION OF SENIOR SECURED NOTES DUE MARCH 15 2004 PRICED AT PAR TO YIELD 1025 THE ISSUE IS NONCALLABLE FOR FIVE YEARS 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 IN THE 144A PRIVATEPLACEMENT MARKET FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF INDEX NOTES DUE MARCH 25 1999 PRICED WITH A 5619 COUPON AT PAR THE ISSUE PAYS MONTHLY AND HAS A 5685 YIELD ACCORDING TO A NATIONSBANC OFFICIAL THE NOTES ARE NONCALLABLE FOR ONE YEAR THEN WILL AMORTIZE BASED ON PREPAYMENT SPEEDS ON FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 MORTGAGEBACKED SECURITIES THE NOTES WERE PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE TREASURYS AND WILL BE SOLD THROUGH NATIONSBANC CAPITAL MARKETS INC FEDERAL HOME LOAN BANK SYSTEM 75 MILLION OF STEPUP NOTES DUE APRIL 12 1999 PRICED AT PAR TO YIELD 555 ACCORDING TO MCM CORPORATEWATCH THE YIELD ON THE NOTES RISES ANNUALLY AFTER THE FIRST YEAR TO 57 61 71 AND 81 THE NOTES ARE NONCALLABLE AFTER THE FIRST YEAR AND WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE THE FIVEYEAR WHENISSUED TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF NOTES DUE MARCH 25 2004 PRICED INITIALLY AT PAR TO YIELD 695 ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 47 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO GREYHOUND FINANCIAL CORP 150 MILLION OF NOTES DUE MARCH 25 1999 PRICED AS 675S AT 99916 TO YIELD 677 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE THE TREASURY WHENISSUED FIVEYEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GREYHOUND FINANCIAL IS A UNIT OF GREYHOUND DIAL CORP SMITH BARNEY SHEARSON HOLDINGS INC 200 MILLION OF NOTES DUE MARCH 15 1997 PRICED AS 6S AT 99957 TO YIELD 6015 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC THE ISSUER IS A UNIT OF TRAVELERS INC WILRIG AS 110 MILLION OF SENIOR SECURED NOTES DUE MARCH 15 2004 PRICED AT PAR TO YIELD 1125 ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ARGENTINA FUND INC 34 MILLION COMMON SHARES PRICED AT 1550 APIECE THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC FLEXTRONICS INTERNATIONAL INITIAL OFFERING OF 25 MILLION COMMON SHARES PRICED AT 14 APIECE THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES AND COWEN & CO METRICOM INC 22 MILLION COMMON SHARES PRICED AT 3025 APIECE THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND COWEN & CO MINNESOTA EDUCATIONAL COMPUTING CORP INITIAL OFFERING OF 1638000 COMMON SHARES PRICED AT 1150 APIECE THROUGH UNDERWRITERS WILLIAM BLAIR & CO PIPER JAFFRAY COS AND SALOMON BROTHERS INC THE COMPANY SAID IT IS OFFERING 1170000 OF THE SHARES AND A SELLING SHAREHOLDER IS OFFERING 468000 PETCO ANIMAL SUPPLIES INC INITIAL PUBLIC OFFERING OF THREE MILLION COMMON SHARES PRICED AT 1550 APIECE THROUGH MANAGING UNDERWRITERS PAINEWEBBER INC AND CS FIRST BOSTON INC FEDERAL HOME LOAN MORTGAGE CORP 1149 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CS FIRST BOSTON INC THE OFFERING SERIES 1718 IS BACKED BY THE AGENCY'S THREE PREVIOUSLY ISSUED REMIC CLASSES WHICH IN TURN ARE BACKED BY 30YEAR MORTGAGE SECURITIES GREEN TREE SECURITIZED NET INTEREST MARGIN TRUST 1994 A 508 MILLION OF SECURITIZED NET INTEREST MARGIN CERTIFICATES PRICED AS 69S AT 99 30/32 TO YIELD 702 ACCORDING TO MARKET OFFICIALS THE SECURITIES HAVE AN EXPECTED FINAL MATURITY OF OCT 15 1999 A LEGAL FINAL MATURITY OF FEB 15 2004 AND A 247YEAR AVERAGE LIFE CASH FLOW IS BACKED BY EXCESS SPREAD FROM PREVIOUSLY ISSUED GREEN TREE FINANCIAL CORP MANUFACTUREDHOUSING ASSETBACKED SECURITIES THE SECURITIES WERE PRICED 183 BASIS POINTS ABOVE THE 4375 TREASURYS MATURING IN AUGUST 1996 CREDIT SUPPORTS INCLUDE A 1429 MILLION SUBORDINATED TRANCHE WHICH WILL BE RETAINED AND A RESERVE FUND TOTALING 88 MILLION THE SECURITIES ARE RATED BAA3 BY MOODY'S AND TRIPLEBPLUS BY FITCH INVESTORS SERVICE INC AND WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC GREYHOUND FINANCIAL CORP IS A UNIT OF GFC FINANCIAL CORP YESTERDAY'S NEW SECURITIES ISSUES COLUMN MISSTATED THE PARENT AS GREYHOUND DIAL CORP 9403210076 940321 BUSINESS BRIEF ALLERION INC COMPANY EXPECTS NET LOSS IN ITS FISCAL FOURTH QUARTER ALLERION INC SAID IT WILL POST A FISCAL FOURTHQUARTER CHARGE OF ABOUT 1 MILLION THAT WILL RESULT IN A NET LOSS FOR THE QUARTER THE EAST HANOVER NJ COMPANY WHICH CHANGED ITS NAME FROM ULTIMATE CORP ABOUT A YEAR AGO PREVIOUSLY HAD SAID IT EXPECTED TO REPORT AN OPERATING PROFIT FOR ITS FOURTH QUARTER WHICH ENDS APRIL 30 THE UNANTICIPATED CHARGE COVERS A PROPOSED SETTLEMENT OF A FIVEYEAROLD CLASS ACTION LAWSUIT RESULTING FROM THE COMPANY'S 1988 RESTRUCTURING AND AN EXPECTED AWARD IN A SEPARATE SOFTWARE LICENSE DISPUTE FROM THE MID1980S THE PROPOSED SETTLEMENT WHICH CONSISTS OF CASH AND WARRANTS TO BUY SHARES NEEDS COURT APPROVAL ALTHOUGH ALLERION IS STILL EXPLORING ITS OPTIONS ON APPEALING AN ARBITRATION AWARD IN THE SOFTWARE LICENSING DISPUTE IT DECIDED TO RESERVE THE FULL AMOUNT OF THE POTENTIAL AWARD THE CHARGE IS ABOUT EVENLY SPLIT BETWEEN THE TWO AWARDS ALLERION SAID THAT ALTHOUGH THE CHARGE WOULD INTERRUPT ITS QUARTERTOQUARTER PATTERN OF OPERATING IMPROVEMENT IT ALLOWS THE COMPANY TO CLOSE A LONG PERIOD OF LITIGATION AND FOCUS FULLY ON MOVING AHEAD WITH ITS NETWORKING STRATEGY ALLERION HELPS COMPANIES INTEGRATE AND MANAGE COMPUTER NETWORKS 9403210075 940321 AS CHINESE OPEN UP MINING TO FOREIGNERS CAUTIOUSNESS RULES RUSH FOR GOLD AND DIAMONDS IS TEMPERED BY CONFUSION ABOUT OWNERSHIP TAXES BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG POTENTIAL FOREIGN INVESTORS DAZZLED BY CHINA'S GOLD AND DIAMOND DEPOSITS CONFRONT A CONFUSING QUESTION WHO IN CHINA MINDS THE MINES BEIJING IS EXPECTED TO APPROVE BY MIDYEAR REGULATIONS ALLOWING FOREIGN INVESTMENT IN THE PROSPECTING EXPLOITATION AND SALE OF GOLD DIAMONDS AND MANY OTHER MINERALS BUT THE PROSPECT OF AN INFLUX OF FOREIGN CAPITAL HAS UNLEASHED A SCRAMBLE AMONG CHINESE AGENCIES AT ALL LEVELS OF GOVERNMENT TO ASSERT CONTROL OVER THE NATION'S MINES AND THAT AS WELL AS THE MINING INDUSTRY'S ILLDEFINED TAX AND REGULATORY FRAMEWORKS IS TEMPERING FOREIGNERS' ENTHUSIASM FOR CHINA'S LATEST STEP IN OPENING ITS ECONOMY WE'RE INCREASINGLY CONFUSED AS TO WHICH CHINESE PARTY HAS THE ULTIMATE AUTHORITY TO NEGOTIATE DEALS SAYS DAVID OWENS PRESIDENT OF ASIA MINERALS CORP OF CANADA WHO HAS BEEN SCOUTING FOR MINING DEALS IN CHINA FOR THE PAST 18 MONTHS TO BE SURE MINING ISN'T THE ONLY SECTOR PLAGUED BY QUESTIONS OF OWNERSHIP UNDER CHINA'S CONSTITUTION ALL ASSETS LAND FACTORIES NATURAL RESOURCES AND THE LIKE BELONG TO THE STATE THAT WASN'T A PROBLEM SO LONG AS THE CENTRAL GOVERNMENT MANAGED THESE ASSETS BUT IN RECENT YEARS ECONOMIC REFORM HAS DECENTRALIZED DECISIONMAKING FRAGMENTING STATE AGENCIES INTO MANY POWERFUL REGIONAL UNITS WITHOUT CLARIFYING WHERE ULTIMATE OWNERSHIP OF ASSETS RESTS THAT HAS FUELED FREQUENT TURF BATTLES ESPECIALLY WHEN VARIOUS AGENCIES VIE FOR THE RIGHT TO LINK UP WITH FOREIGN COMPANIES THESE DAYS THE FIGHTING IS PARTICULARLY FIERCE IN THE MINING SECTOR A MAJOR REASON CHINA'S GOLD DIAMOND AND OTHER MINERAL RESERVES HAVE LONG BEEN REGARDED AS PART OF CHINA'S NATIONAL HERITAGE AND THUS THEY HAVE BEEN KEPT OFF LIMITS TO FOREIGNERS AT A TIME WHEN MANY OTHER INDUSTRIES AND THE INDIVIDUALS MANAGING THEM HAVE BENEFITTED FROM INFLOWS OF OVERSEAS CAPITAL WITH THE SECTOR SET TO OPEN CHINESE MINING OFFICIALS DON'T WANT TO MISS OUT CHINESE OFFICIALS WOULD TELL YOU THEY NOW BELIEVE THAT THE MINERAL RESOURCES BELONG TO THE ENTIRE WORLD SO IT'S OK FOR FOREIGNERS TO DIG SAYS AN EXECUTIVE OF OLDS INDUSTRIAL INC ANOTHER CANADIAN MINING CONCERN THE TRUTH IS THEY NOW BELIEVE IN THE GETRICHQUICK POLICY SELL THE MINERALS AND GRAB THE MONEY FOR THEIR PART FOREIGNERS RELISH THE PROSPECT OF EXPLORING ONE OF THE WORLD'S LAST MINING FRONTIERS DESPITE THE INDUSTRY'S CRUDE EXTRACTION METHODS AND FINANCIAL CONSTRAINTS CHINA ALREADY IS THE WORLD'S SIXTHLARGEST PRODUCER OF GOLD AND RANKS AMONG THE TOP FIVE IN PRODUCTION OF IRON ORE ALUMINUM AND LEAD WE'RE VERY EXCITED BY THE OPPORTUNITIES PRESENTED IN CHINA SAYS WAYNE SPILSBURY A VICE PRESIDENT OF TECK EXPLORATION LTD OF CANADA THE COMPANY IS SETTING UP A REGIONAL OFFICE IN SINGAPORE THAT WILL SERVE AS A BASE FOR EXPLORING FOR GOLD AND OTHER MINERALS IN CHINA GOLD MINES APPEAR TO BE ATTRACTING THE MOST ATTENTION ESPECIALLY NOW THAT INTERNATIONAL GOLD PRICES ARE STRENGTHENING THE STATE GOLD BUREAU CONTROLS NEARLY HALF OF CHINA'S GOLD MINES WITH THE REST OPERATED BY PROVINCIAL AND EVEN COUNTY GOVERNMENTS ALL HOWEVER ARE REQUIRED TO SELL THEIR OUTPUT TO THE CENTRAL GOVERNMENT WHICH CONTROLS DISTRIBUTION AND SETS DOMESTIC PRICES FOR THE METAL LAST DECEMBER THE MINISTRY OF GEOLOGY AND MINERAL RESOURCES ANNOUNCED THAT FOREIGNERS WOULD BE ALLOWED TO EXPLORE FOR GOLD AND EVEN ACQUIRE EXISTING DEPOSITS THAT ARE DIFFICULT TO EXTRACT THE MINISTRY ALSO RECOMMENDED ALLOWING FOREIGNINVESTED GOLD MINES TO SELL THEIR OUTPUT ON THE DOMESTIC AND WORLD MARKETS AT THE SAME TIME IT PUBLICIZED THE NAMES OF A DOZEN GOLD MINES MOSTLY MARGINALLY PROFITABLE LOOKING FOR FOREIGN INVESTORS BUT FOREIGN COMPANIES KEEN TO TAP CHINA'S GOLD AND OTHER RESOURCES ARE CONCERNED ABOUT MORE THAN WHOM THEY SHOULD BE NEGOTIATING WITH FOR ONE THING CHINA HAS YET TO CLARIFY WHAT THEIR TAX LIABILITIES WILL BE A GEOLOGY MINISTRY OFFICIAL SAYS SINOFOREIGN MINING JOINT VENTURES WILL BE SUBJECT TO THE SAME 33 PROFIT TAX AND 17 VALUEADDED TAX AS OTHER BUSINESSES IN CHINA HOWEVER THESE VENTURES ALSO WILL PAY A RESOURCESCOMPENSATION TAX AND THAT RATE HASN'T BEEN DECIDED YET LACK OF A REGULATORY FRAMEWORK FOR FOREIGN INVESTMENT IN MINING IS ANOTHER WORRY FOR INSTANCE IT REMAINS UNCLEAR WHETHER A FOREIGN PARTNER IN A DIAMOND MINE WILL BE ALLOWED TO BUY ITS CHINESE PARTNER'S SHARE OF OUTPUT FOR SALE ON THE INTERNATIONAL MARKET SUCH CONCERNS WILL BE ADDRESSED IN THE CHANGES TO THE NATION'S MINING LAW THAT ARE EXPECTED TO BE APPROVED BY MIDYEAR THE GEOLOGY MINISTRY OFFICIAL SAYS EVEN SO THE OWNERSHIP ISSUE WILL LIKELY PERSIST ALREADY EXECUTIVES WITH SEVERAL FOREIGN COMPANIES SAY NEGOTIATIONS TO ACQUIRE MINING STAKES HAVE BEEN STALLED BY POWER STRUGGLES AMONG CHINESE AGENCIES ASIA MINERALS LAST AUGUST SIGNED A LETTER OF INTENT TO INVEST IN A LEAD ZINC AND SILVER MINE IN SHAANXI PROVINCE ALL ALONG THE CANADIAN COMPANY DEALT WITH A PROVINCIAL CONCERN COMPRISING INTERESTS OF THE PROVINCIAL GOVERNMENT THE BEIJINGBASED CHINA NATIONAL NONFERROUS METAL INDUSTRY CORP AND CNNMC'S PROVINCIAL AFFILIATE BUT RECENTLY CNNMC ITSELF STEPPED IN TO CLAIM CONTROL OF THE MINE AND THE RIGHT TO NEGOTIATE WITH POTENTIAL FOREIGN PARTNERS THAT HAS PUT THE DEAL ON HOLD THE CHAIRMAN OF THE PROVINCIAL CONCERN TOLD US THAT HE REPRESENTED INTERESTS OF ALL PARTIES BUT IN HINDSIGHT HE MAY NOT HAVE THE REAL AUTHORITY SAYS MR OWENS 9403210074 940321 CORRECTIONS & AMPLIFICATIONS NOVELL INC ACQUIRED UNIX SYSTEMS LABORATORIES INC FOR 346 MILLION IN NOVELL STOCK LAST MONDAY'S CORPORATE FOCUS ARTICLE SAID NOVELL'S COST WAS NEARLY 600 MILLION IN COMBINED NEW STOCK AND WRITEOFFS INTERPUBLIC GROUP'S MCCANNERICKSON CREATED ONE OF THE COMMERCIALS IN A NEW CAMPAIGN FOR SPRITE SODA THURSDAY'S ADVERTISING COLUMN FAILED TO MENTION THE AGENCY BASED ON ERRONEOUS INFORMATION FROM COCACOLA CO FIGGIE INTERNATIONAL INC ANNOUNCED PLANS TO SHED BUSINESSES VALUED AT 379 MILLION ACCOUNTING FOR ABOUT ONETHIRD OF ITS 1993 SALES OF 11 BILLION AN ARTICLE FRIDAY INCORRECTLY REPORTED THAT THOSE BUSINESSES REPRESENTED ONETHIRD OF FIGGIE'S 1993 SALES OF 768 MILLION FIGGIE HAD RESTATED ITS 1993 SALES TO 768 MILLION TO REFLECT THE PLANNED DIVESTITURES FLORIS A MALJERS CHAIRMAN OF UNILEVER NV WAS NOMINATED TO JOIN AMOCO CORP'S BOARD THE RESULT OF AMOCO SHAREHOLDERS' VOTE ON THE NOMINATION WILL BE ANNOUNCED AT THE COMPANY'S APRIL 26 ANNUAL MEETING TUESDAY'S WHO'S NEWS COLUMN INCORRECTLY STATED THAT MR MALJERS HAD ALREADY BEEN ELECTED 9403210073 940321 INTERNATIONAL BRIEF BRITISH AEROSPACE PLC COMPANY SEEKING A PARTNER TO INVEST IN NEW AIRCRAFT BRITISH AEROSPACE PLC SAID IT IS LOOKING FOR A PARTNER TO INVEST IN ITS 2 BILLION PROJECT TO DESIGN A NEW AIRCRAFT THE RJX AVROLINER JOHN SCHOFIELD REGIONAL VICE PRESIDENT OF THE COMPANY'S AVRO DIVISION SAID NEGOTIATIONS WERE HELD WITH TAIWAN AEROSPACE CORP BUT THAT NO AGREEMENT WAS REACHED MR SCHOFIELD SAID DEVELOPMENT COSTS OF THE AVROLINER WERE TOO HIGH FOR BRITISH AEROSPACE TO BEAR ALONE AND THAT THE COMPANY WAS SEEKING A PARTNER WITH STRONG MANUFACTURING CAPABILITIES AND TECHNICAL EXPERTISE THE EXECUTIVE SPOKE TO A NEWS CONFERENCE DURING A FLIGHT DEMONSTRATION AT BAHRAIN INTERNATIONAL AIRPORT OF THE AVRO RJ70 WHICH CAME INTO SERVICE IN 1993 FOR SHORTHAUL PURPOSES AVRO OFFICIALS ARE TOURING THE OILRICH REGION IN SEARCH OF POTENTIAL CUSTOMERS FOR THE 25 MILLION PLANE WHICH CAN LAND ON UNPAVED RUNWAYS 9403210072 940321 INTERNATIONAL MEXICO'S PESO BEGINS TO SHOW MORE VOLATILITY OFFICIALS DENY POLICY SHIFT FLUCTUATIONS MAY HELP IN POSTNAFTA ECONOMY BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY FOR THE FIRST TIME IN YEARS MEXICAN FINANCE OFFICIALS ARE EMBRACING A LOWER AND PERHAPS MORE VOLATILE PESO COMPARED WITH THE DOLLAR WHILE DENYING THIS MARKS A DISTINCT POLICY SHIFT THE FINANCE MINISTRY HERE CLEARLY SEES BENEFITS IN THE CURRENT SITUATION AND HAS DONE LITTLE TO ALTER THE CURRENCY'S COURSE YEAR TO DATE THE PESO IS DOWN AROUND 7 AGAINST THE DOLLAR IN AN INTERVIEW PEDRO ASPE MEXICO'S MINISTER OF FINANCE SAYS WE HAVE THE SAME MONETARY POLICY AND THE SAME FISCAL POLICY THE VOLATILITY IN THE MARKETS IS FROM OTHER AFFAIRS NOTABLY POLITICAL UNCERTAINTY ON THE PART OF FOREIGN INVESTORS MR ASPE EXPLAINS THAT THE ECONOMIC PACT BETWEEN MEXICAN LABOR AND THE GOVERNMENT STATES THE PESO CAN FLOAT IN A 1027 RANGE COMPARED WITH THE DOLLAR CURRENTLY AN ADVANTAGE OF SUCH A BROAD RANGE HE NOTES IS THAT IT DISCOURAGES SPECULATION IF THE PESO FLUCTUATES WITHIN THE BAND AS IT HAS HE SAYS DRAWING A DOWNWARD LINE ON A SLIP OF PAPER WELL THAT'S THE MARKET THIS HANDSOFF POLICY HAS IMPORTANT IMPLICATIONS FOR MEXICO DURING THIS ELECTION YEAR AND DOES INDEED INDICATE A NEW ATTITUDE BY FINANCE OFFICIALS HERE ABOUT FOREIGN INVESTMENT AFTER THE NORTH AMERICAN FREE TRADE AGREEMENT'S APPROVAL WHETHER IT'S AN EXPLICIT POLICY OR NOT A MORE VOLATILE PESO DOES DISCOURAGE SPECULATION AND A LOWER PESO ENCOURAGES LONGERTERM CAPITAL FLOWS INTO EXPORTORIENTED INDUSTRIES SAYS MARILYN SKILES AN ECONOMIST AT JP MORGAN FINANCE MINISTRY OFFICIALS CAN SEE SUCH A BENEFIT ONLY AS POSITIVE NOW AN ECONOMIC CONSULTING FIRM HERE ESTIMATES THAT DIRECT FOREIGN INVESTMENT IN MEXICAN PROJECTS REACHED 47 BILLION IN 1993 WHILE INVESTMENT IN STOCKS AND OTHER FINANCIAL INSTRUMENTS COULD BE ABOUT THREE TIMES THAT FIGURE AT 147 BILLION THIS HAS SPARKED CRITICISM AGAINST THE SALINAS REFORMS BY THE MAIN OPPOSITION HERE THE PARTY OF THE DEMOCRATIC REVOLUTION LED BY CUAUHTEMOC CARDENAS MR CARDENAS'S CHIEF ECONOMIC ADVISER JORGE CALDERON SALAZAR SAID IN A MEETING FRIDAY THERE IS A PROFOUND DISINDUSTRIALIZATION THAT HAS TAKEN PLACE IN MEXICO DURING THE TENURE OF CARLOS SALINAS HE ADDS THAT FOREIGN INVESTORS ARE NOT DIRECTLY INVESTING IN PRODUCTIVE INDUSTRIES THAT CREATE JOBS SPECULATIVE INVESTMENT IN STOCKS IS A PERVERSION HE SAYS WE ARE IN A SOCIAL CRISIS HERE EVEN MAINSTREAM ECONOMISTS ARE STARTING TO WONDER IF INVESTMENT IN MEXICO IS BEING USED FOR PRODUCTIVE PROJECTS GIVEN THE COUNTRY'S WEAK ECONOMIC GROWTH FOR THE PAST THREE YEARS THE STABILITY OF THE PESO WAS A HALLMARK OF ECONOMIC REFORMS HERE FROM 1991 TO THE END OF 1993 THE CURRENCY TRADED AT LOW VOLATILITIES IN A FAIRLY NARROW RANGE THIS WAS PARTLY DUE TO DAILY INTERVENTIONS BY THE CENTRAL BANK TO SMOOTH OUT ABNORMAL FLUCTUATIONS THIS POLICY WAS DELIBERATE AND HAD THE DESIRED EFFECT OF WINNING INVESTOR CONFIDENCE IN MEXICAN SECURITIES BY THE END OF 1993 FOREIGN INVESTORS OWNED 219 BILLION OR NEARLY 40 OF ALL OUTSTANDING MEXICAN TREASURY CERTIFICATES AND OTHER GOVERNMENT OBLIGATIONS UP FROM 54 BILLION OR 97 AT THE END OF 1991 THE STABLE EXCHANGERATE POLICY WAS AN IMPORTANT PRENAFTA TOOL FOR PRESIDENT CARLOS SALINAS FACED WITH AN INCREASINGLY OPEN ECONOMY MEXICAN BUSINESSES NEEDED TO INVEST TO COMPETE AS FOREIGN INVESTMENT RUSHED INTO THE STOCK MARKET MEXICAN CORPORATIONS WERE ABLE TO RAISE MORE CAPITAL IN 1993 ALONE MEXICAN COMPANIES SOLD SOME 412 BILLION IN STOCKS ALSO LARGE FOREIGN INVESTMENT SHOWED CONFIDENCE IN MEXICO'S ECONOMIC REFORMS AS NAFTA WAS BEING DEBATED BUT THE BIG DOLLAR INFLOWS HAD A COST INTEREST RATES REMAINED HIGH TO KEEP INFLATION DOWN AND FOREIGN INVESTMENT UP AFTER THE APPROVAL OF NAFTA FOREIGN INVESTMENT INTO MEXICAN MARKETS SOARED CREATING A HEADACHE FOR THE FINANCE MINISTRY THE PESO STRENGTHENED SHARPLY AGAINST THE DOLLAR AND THE CENTRAL BANK'S DOLLAR RESERVES ROSE AROUND 105 BILLION TO ABOUT 30 BILLION MEXICAN BANKERS WHO SPEAK WITH MR ASPE AND THE CENTRAL BANK SAY THEY ARE INCREASINGLY FROWNING ON INFLOWS OF HOT MONEY OR SHORTTERM SPECULATIVE INVESTMENTS BUT JOHN LIEGEY PRESIDENT OF NEW YORK PESO BROKER AND MERCHANT BANK THE WESTON GROUP WORRIES THAT THE NEW HANDSOFF POLICY COULD BACKFIRE FOREIGN INVESTORS HAVE ALWAYS INVESTED IN MEXICO ON THE BACK OF A STRONG AND STABLE CURRENCY MR LIEGEY SAYS WE ARE NOW AT VOLATILITIES IN THE PESO APPROACHING THE GERMAN MARK MUTUALFUND MANAGERS ARE NOT ACCUSTOMED TO THESE VOLATILITIES THAT'S TRUE AS CAN EASILY BE SHOWN BY THE STOCK MARKET'S 172 DECLINE FROM ITS RECORD HIGH IN FEBRUARY WHAT DOES MEXICO WANT A LOWER PESO MOTIVATES DIRECT INVESTMENT AND SCARES AWAY HOT MONEY SAYS JORGE ALONSO HEAD OF CAPITAL MARKETS AT CHASE MANHATTAN BANK MEXICO CITY THAT'S WHY THEY AREN'T DOING ANYTHING TO GET THE PESO BACK TO WHERE IT WAS 9403210071 940321 BUSINESS BRIEF LIBERTE INVESTORS FIRM'S ASSETS TO BE SHIFTED TO RESURGENCE PROPERTIES LIBERTE INVESTORS SAID IT EXPECTS TO TRANSFER MOST OF ITS ASSETS ON OR ABOUT MARCH 31 TO A WHOLLY OWNED SUBSIDIARY TO BE NAMED RESURGENCE PROPERTIES INC THE COMPANY SAID IT WILL DISTRIBUTE THE COMMON STOCK OF RESURGENCE PROPERTIES TO HOLDERS OF LIBERTE'S 105 SUBORDINATED NOTES DUE 1993 TO FULLY SATISFY OBLIGATIONS TO THOSE HOLDERS LIBERTE A DALLASBASED REALESTATE INVESTMENT TRUST SAID RESURGENCE PROPERTIES WILL ASSUME LIBERTE'S OBLIGATIONS UNDER ITS SENIOR SECURED DEBT ON RESTRUCTURED TERMS AT THE TIME OF THE ASSET TRANSFER SINCE LAST OCTOBER LIBERTE HAS OPERATED UNDER PROTECTION OF CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE 9403210070 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT ALTERED STATES NOVEL PLANS WHEN I WAS A KID WE HAD BOOKS ON PAPER' WILL WE ALL SAY THAT IN THE FUTURE BY MEG COX IN A 1983 BOOK CALLED ELECTRONIC LIFE AUTHOR MICHAEL CRICHTON PREDICTED THAT BOOKS WOULD BE PRINTED AND READ ON PAPER FOR ANOTHER 20 YEARS TODAY HE THINKS HIS PREDICTION IS PRETTY MUCH ON TARGET BOOKS ON PAPER WON'T BECOME EXTINCT BY 2003 SAYS MR CRICHTON JUST INCREASINGLY RARE BUT WHERE IS THE ELECTRONIC BOOK TODAY SURE CDROMS AND FLOPPY DISKS ARE TERRIFIC FOR DIGGING THROUGH PILES OF DATA LIKE PRESIDENT CLINTON'S 1995 BUDGET AND MULTIMEDIA CDROMS ARE INCREASINGLY ATTRACTIVE FOR ENTERTAINING VIDEOADDICTED CHILDREN AT HOME AND SCHOOL BUT READ A BOOK ON A COMPUTER SCREEN WHAT GROWNUP WOULD ACTUALLY DO THAT BY CHOICE AND HOW MANY ARE I'M NEVER GOING TO READ GONE WITH THE WIND' ON A COMPUTER PREDICTS JOHN WARNOCK COFOUNDER AND CHIEF EXECUTIVE OF SOFTWARE PRODUCER ADOBE SYSTEMS INC MOUNTAIN VIEW CALIF TO ME THE POWER OF THIS REVOLUTION COMES NOT FROM READING A SINGLE BOOK ELECTRONICALLY BUT HAVING THE POWER TO ACCESS ONE MILLION BOOKS INDEED THE REFERENCE POSSIBILITIES FOR MULTIMEDIA ARE VAST AND ENCYCLOPEDIAS ARE AMONG THE EARLY FAVORITES IN SALES OF CONSUMER CDROM TITLES ONE ELECTRONIC PUBLISHER ALLEGRO NEW MEDIA OF FAIRFIELD NJ SAYS ITS BESTSELLING CDROM TITLE COMBINES 12 BUSINESS REFERENCE BOOKS ON A SINGLE DISK BUT THE CHANGE AHEAD WILL BE MUCH BROADER THAN THAT THE TRANSITION OF BOOKS TO AN ELECTRONIC FORMAT HAS ALREADY BEGUN AND THE CONVERTS SAY THE APPEAL AND ACCEPTANCE OF ELECTRONIC BOOKS WILL GROW EXPONENTIALLY JACK GAYNOR A MOLECULAR BIOLOGIST AT MONTCLAIR STATE UNIVERSITY IN MONTCLAIR NJ WAS SKEPTICAL ABOUT READING NOVELS ON A COMPUTER SCREEN UNTIL LAST MONTH WHEN CURIOSITY ABOUT THE TECHNOLOGY DROVE HIM TO BUY A 20 ELECTRONIC VERSION OF MR CRICHTON'S NOVEL JURASSIC PARK I WAS SURPRISED AT HOW MUCH I ENJOYED IT SAYS MR GAYNOR NOW I CAN EASILY PICTURE MYSELF CURLING UP ON THE COUCH WITH MY POWERBOOK PORTABLE COMPUTER AND READING MORE BOOKS THIS WAY THE GROUNDWORK FOR RAPID EXPANSION HAS ALREADY BEEN LAID THERE IS A LARGE AND FASTGROWING BASE OF CDROM PLAYERS INSTALLED IN HOMES AT THE SAME TIME THAT DOZENS OF ADVENTUROUS ELECTRONIC PUBLISHERS ARE PUMPING OUT NEW TITLES EVEN IF TRADITIONAL PAPER PUBLISHERS ARE TECHNOPHOBIC AND DRAGGING THEIR FEET NONETHELESS THE CONVERSION TO MASS USE OF ELECTRONIC BOOKS IS EXPECTED TO BE EXTREMELY SLOW PEOPLE CAN'T CRAVE SOMETHING THEY HAVE NEVER SEEN AND DON'T QUITE UNDERSTAND TALKING TO PEOPLE ABOUT THIS STUFF IS LIKE EXPLAINING SEX TO A SIXYEAROLD SAYS BOB STEIN COOWNER OF VOYAGER CO A NEW YORK PUBLISHER OF MUCHLAUDED ELECTRONIC BOOKS IT ISN'T UNTIL SOMEONE HAS ACTUALLY USED ONE OF THESE THEMSELVES THAT THEY'LL GET WHAT ALL THE EXCITEMENT IS ABOUT BUT THEY WILL GET IT AND A SUBSTANTIAL SUBSET OF COMPUTERUSERS ALREADY DOES THE MOST AMBITIOUS DEMONSTRATION PROJECT IS A JOINT EFFORT BY APPLE COMPUTER INC AND SIX MULTIMEDIA PUBLISHERS SPECIFICALLY AIMED AT WINNING OVER AVID BOOK READERS TO THE NEW TECHNOLOGY KNOWN INFORMALLY AS THE KIOSK PROJECT THE VENTURE INVOLVES MULTIMEDIA COMPUTERS SET UP AT EIGHT BOOKSTORES INCLUDING ONE IN TORONTO AND ONE IN LONDON EXPERTS ARE AT THE KIOSKS IN THE EVENINGS AND ON WEEKENDS DEMONSTRATING FROM A LIBRARY OF CDROMS AND FLOPPY DISKS PROVIDED BY THE PARTICIPATING PUBLISHERS THE PROJECT IS TO LAST SIX MONTHS AND BOOKSTORES AROUND THE COUNTRY ARE CLAMORING TO BE ADDED TO THE ORIGINAL LIST OF SITES BUT A VISIT TO ONE OF THE KIOSKS AT THE SHAKESPEARE & CO BOOKSTORE ON NEW YORK'S UPPER WEST SIDE SHOWS THAT WHILE ELECTRONIC BOOKS HAVE POTENTIAL THEY WON'T BE AN EASY SELL GEORGE WHITE A YOUNG MAN WITH A LONG PONYTAIL WHO WORKS FOR VOYAGER ONE OF THE PUBLISHERS IN THE PROJECT FIGURES THAT ABOUT 80 OF THE CUSTOMERS SIMPLY IGNORE HIM AND SOME OF THOSE WHO DON'T IGNORE HIM WANT A DIFFERENT KIND OF HELP HE'S TALL AND THEY JUST WANT HIM TO REACH BOOKS ON HIGH SHELVES MOREOVER WHEN PEOPLE WITH LITTLE KNOWLEDGE OF THE TECHNOLOGY DO STOP BY A GOOD 20 MINUTES OF DEMONSTRATING MAY BE NECESSARY BEFORE THEY CATCH ON STILL EVEN WHEN THEY DON'T BUY ANYTHING A SEED MAY HAVE BEEN PLANTED TYPICAL PERHAPS IS A MIDDLEAGED WOMAN WHO STOPPED BY THE KIOSK HER FIRST REACTION NO INTEREST TO READ A BOOK ALL YOU NEED IS YOUR BRAIN SHE SAYS I CAN SEE THIS MULTIMEDIA STUFF BEING GOOD FOR KIDS NONETHELESS SHE WATCHES AS MR WHITE DEMONSTRATES SEVERAL TITLES INCLUDING SCARY POEMS FOR ROTTEN KIDS AN INTERACTIVE BOOK THAT LETS CHILDREN DECIDE WHETHER AND HOW TO HAVE THE POEMS READ TO THEM AND A MULTIMEDIA SURVEY OF JAPANESE CULTURE AND LANGUAGE EVENTUALLY SHE ASKS HOW MUCH MONEY WOULD IT COST TO UPGRADE MY HOME COMPUTER TO CDROM SHE MAY BECOME A BUYER OF ELECTRONIC BOOKS EVENTUALLY BUT NOT TONIGHT RON LITVAK A DENVER LAWYER WHO BUYS HIS BOOKS AT THE LOCAL TATTERED COVER ANOTHER BOOKSTORE IN THE KIOSK PROJECT IS MORE AMENABLE TO THE TECHNOLOGY OUT OF CURIOSITY MR LITVAK SAYS HE READ PLEADING GUILTY A LEGAL THRILLER ON HIS POWERBOOK AND LIKED THAT HE COULD READ IT IN BED EVEN WHEN HIS WIFE WAS ASLEEP BECAUSE THE SCREEN IS LIGHTED BUT HE SAYS FOR RECREATIONAL READING I'M STICKING WITH THE GOOD OLD PAPERBACK CHEMIST WAYNE MASCARELLA WHO WORKS ON COMPUTERS DAILY MODELING MOLECULES AT RESEARCH TRIANGLE INSTITUTE IN RESEARCH TRIANGLE PARK NC HAS ALSO EXPERIMENTED WITH READING NOVELS ON HIS POWERBOOK I'M ACTIVELY HUNTING FOR REFERENCE WORKS NOW THAT I HAVE CDROM ON MY HOME COMPUTER SAYS MR MASCARELLA BUT I'M SKEPTICAL WHEN IT COMES TO NOVELS ON SCREEN EXCEPT FOR CYPERPUNK NOVELS IT JUST FELT RIGHT TO ME TO READ THE HITCHHIKER'S GUIDE TO THE GALAXY' ON POWERBOOK BECAUSE THE PLOT REVOLVES AROUND AN ELECTRONIC BOOK THAT CONTAINS EVERYTHING IN THE UNIVERSE WORTH KNOWING A SORT OF ULTIMATE POWERBOOK MANY COMPUTER OWNERS REPORT THAT THEIR KIDS ARE MUCH MORE COMFORTABLE READING ON SCREEN THAN THEY ARE MR GAYNOR THE MOLECULAR BIOLOGIST SAYS HIS 10YEAROLD AND 14YEAROLD SONS ALSO READ JURASSIC PARK ON POWERBOOK AND LOVED ALL THE EXTRA FEATURES INCLUDING A RECORDING THAT CONVEYS WHAT SCIENTISTS THINK DINOSAURS SOUNDED LIKE ALSO SOME OF THE IMAGES IN THE BOOK PUBLISHED ON A FLOPPY DISK BY VOYAGER CAN BE TRANSMITTED TO A PRINTER AND COPIED ONTO PAPER ONE OF MR GAYNOR'S SONS HAS COVERED HIS SCHOOL BOOKS WITH DINOSAUR DRAWINGS FROM THE BOOK AND HIS CLASSMATES ARE JEALOUS NUMBERS TELL THE STORY OF THE ELECTRONIC BOOK'S MODEST START VOYAGER THOUGH LAUDED AS A PIONEER HASN'T BEEN ABLE TO MAKE ANY MONEY AFTER 10 YEARS IN THE BUSINESS AND EVEN ITS BESTSELLING TITLES LIKE JURASSIC PARK SELL IN THE NEIGHBORHOOD OF 5000 UNITS ITS ATTEMPTS TO SELL ELECTRONIC VERSIONS OF JANE AUSTEN MARCEL PROUST AND OTHER LITERARY AUTHORS HAVEN'T BEEN NEARLY AS SUCCESSFUL THE CDROM PRODUCTS THAT SELL IN HUGE NUMBERS SEVERAL HUNDRED THOUSAND TEND TO BE ENTERTAINMENTORIENTED LIKE TIME WARNER INC'S ANIMATED HELL CAB ONE OF THE TITLES IN THE KIOSK PROJECT HELL CAB WORKS LIKE A VIDEO GAME IN IT A DEMENTED CAB DRIVER WHO IS AN APPRENTICE DEVIL GOES ON A WILD RIDE THROUGH TIME THERE IS LITTLE TEXT AND MUCH ACTION AT ONE POINT THE VIEWER FIGHTS GLADIATORS IN ANCIENT ROME NONETHELESS A SMALL BAND OF BELIEVERS CONTINUE TO INSIST THAT MULTIMEDIA TECHNOLOGY WILL CHANGE THE WAY ALL KINDS OF BOOKS ARE WRITTEN AS WELL AS HOW WE READ THEM THERE'S A TREMENDOUS AMOUNT OF BALONEY BEING DISHED UP ABOUT THE FUTURE SAYS MR CRICHTON BUT I DON'T THINK THERE IS ANY DOUBT THAT BOOKS WILL CHANGE ENORMOUSLY OR ANY REASON TO BE NOSTALGIC THE ABILITY TO ADD SOUND GRAPHICS ANIMATION AND LAYERS OF TEXT WILL ALTER THE EXPERIENCE OF WHAT A BOOK IS AND I CAN'T WAIT MS COX IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9403210069 940321 PHILIPPINES HOPES TO CONVINCE IMF ON GROWTH OUTLOOK RAMOS INDICATES WILLINGNESS TO ADOPT REFORM IDEAS BUT HE MAY BE WAVERING BY URBAN C LEHNER AND REGINALD CHUA STAFF REPORTERS OF THE WALL STREET JOURNAL MANILA CAN FIDEL RAMOS STAY ON COURSE IN HIS FIRST 21 MONTHS AS PRESIDENT OF THE PHILIPPINES MR RAMOS HAS SHOWN A WILLINGNESS TO ADOPT NEEDED REFORMS EVEN IF THEY HURT SOME GROUPS OF VOTERS HE HAS GONE A LONG WAY TOWARD DISPELLING FOREIGN INVESTORS' QUALMS ABOUT THE PHILIPPINES AND BROUGHT POLITICAL STABILITY TO A COUNTRY THAT ONLY A FEW YEARS AGO FACED COUP ATTEMPTS WITH FRIGHTENING REGULARITY BUT IN RECENT WEEKS MR RAMOS HAS SEEMED TO WAVER WITHDRAWING AN INCREASE IN OIL PRICES IN THE FACE OF POPULAR OPPOSITION NOW HE MUST CONVINCE THE INTERNATIONAL MONETARY FUND THAT HE CAN KEEP THE PHILIPPINES ON A SOUND TRACK WE HAVE TO PASS THAT TEST MR RAMOS SAID IN AN INTERVIEW THAT'S THE TOUGHEST ONE OF ALL A TEAM OF IMF NEGOTIATORS ARRIVED IN MANILA LAST WEEK FOR TALKS THAT WILL DECIDE WHETHER THE PHILIPPINES RECEIVES WHAT MR RAMOS CALLS THE IMF'S SEAL OF APPROVAL THE DECISION WILL NOT ONLY DETERMINE WHETHER THE PHILIPPINES CAN BORROW FROM THE IMF AN IMF BLESSING ALSO WOULD ENABLE THE COUNTRY TO RESCHEDULE UP TO 1 BILLION IN DEBT FROM A GROUP OF ITS BIGGEST FOREIGN CREDITORS MOST IMPORTANT IT WOULD PROVIDE ADDITIONAL COMFORT TO POTENTIAL FOREIGN INVESTORS WHO BYPASSED THE PHILIPPINES FOR OTHER SOUTHEAST ASIAN COUNTRIES IN THE LATE 1980S BECAUSE OF MANILA'S POLITICAL INSTABILITY AND ONAGAIN OFFAGAIN ECONOMIC POLICIES BOTH THE IMF AND THE PHILIPPINES AGREE ON THE GOAL INCREASING THE COUNTRY'S LONGTERM GROWTH RATE THIS YEAR FOR THE FIRST TIME IN FOUR YEARS GROSS NATIONAL PRODUCT OR THE NATION'S TOTAL OUTPUT OF GOODS AND SERVICES IS EXPECTED TO GROW FASTER THAN POPULATION AN EXPECTED 35 COMPARED WITH A BIRTH RATE OF 24 BUT EVEN THAT IS FAR SLOWER THAN NEEDED TO RAISE LIVING STANDARDS SIGNIFICANTLY AND IT IS DISMALLY SLOW COMPARED WITH MANY NEIGHBORING COUNTRIES THE IMF AND THE PHILIPPINES ALSO AGREE ON THE MEANS NEEDED TO REACH THAT END MORE SAVINGS AND MORE INVESTMENT THEY AGREE ON THE NEED TO RAISE TAX REVENUES DISMANTLE TARIFF WALLS AND MAKE THE GOVERNMENT SMALLER AND MORE PRODUCTIVE DESPITE ALL THESE POINTS OF AGREEMENT CONVINCING THE SIXMEMBER IMF TEAM WON'T BE EASY AS MR RAMOS CONCEDES IMF OFFICIALS AREN'T WILLING TO TAKE MR RAMOS'S WORD THAT THE NEEDED ECONOMIC REFORMS WILL BE PUT IN PLACE OVER THE NEXT FEW YEARS THEY WANT TO SEE AT LEAST SOME CONCRETE MEASURES RIGHT AWAY ESPECIALLY THE PASSAGE OF TAX MEASURES CURRENTLY PENDING IN THE SENATE TWO MONTHS AGO THE PHILIPPINES SEEMED ON THE VERGE OF WINNING THE IMF OVER AN IMF TEAM HAD COME AND GONE AND OIL PRICES HAD BEEN RAISED TO BRIDGE THE COUNTRY'S CHRONIC REVENUE SHORTFALL PUBLIC PROTESTS OVER THE INCREASES DIDN'T SEEM TO BUDGE MR RAMOS WHO SAID HE WOULD STAND FIRM ON THE ISSUE THEN SUDDENLY HE BACKED DOWN THE INCREASES WERE SUSPENDED A COMMITTEE OF GOVERNMENT OFFICIALS AND PROTEST LEADERS WAS FORMED TO FIND WAYS TO RAISE THE 10 BILLION PESOS 369 MILLION THE OIL LEVY WAS TO HAVE GENERATED AND FINALLY THE LEVY WAS SCRAPPED MR RAMOS SUGGESTS THAT THE CHAIN OF EVENTS IS ACTUALLY A VICTORY FOR THE GOVERNMENT BECAUSE HE GAINED THE SUPPORT OF CONGRESS FOR NEW LONGTERM REVENUE MEASURES NONETHELESS HE DOESN'T LIKE DWELLING ON THE SUBJECT I DON'T KNOW WHY THIS IS SUCH AN IMPORTANT PART OF THIS INTERVIEW HE DEMANDS AT ONE POINT WE'RE NOT SEEING ANY REDUCTION OF FOREIGN INTEREST IN INVESTING IN THE PHILIPPINES JUST BECAUSE THERE WAS AN OIL LEVY THAT WAS LIFTED MR RAMOS WILL NEED ALL HIS CONFIDENCE TO BRING THE IMF AROUND IF THE TEAM CAN'T TAKE HOME ANY TANGIBLE EVIDENCE THAT MANILA IS READY TO TAKE IMMEDIATE ACTION TO CARRY OUT ITS OWN ECONOMIC PRESCRIPTIONS THE IMF ISN'T LIKELY TO AGREE TO MAKE NEW LOANS AVAILABLE NOW IF THAT HAPPENS TALKS WILL PROBABLY BE PUT ON HOLD FOR SEVERAL MONTHS LEAVING QUESTIONS HANGING OVER THE RAMOS ADMINISTRATION'S COMMITMENT TO REFORM THOSE CONCRETE STEPS HOWEVER AREN'T ALL WITHIN MR RAMOS'S CONTROL HE NEEDS THE COOPERATION OF CONGRESS TO PASS SEVERAL KEY MEASURES WHILE THE HOUSE OF REPRESENTATIVES HAS BEEN AMENABLE TO FOLLOWING HIS LEAD THE SENATE HASN'T SENATORS HAVE SAT ON SOME BILLS THAT MR RAMOS CONSIDERS VITAL TO HIS PROGRAM SUCH AS ONE TO BROADEN THE SCOPE OF THE VALUEADDED TAX AND ANOTHER TO OPEN THE BANKING INDUSTRY TO FOREIGN COMPETITION OTHER STEPS NEEDED TO KEEP MR RAMOS'S PROGRAM ON TRACK SUCH AS TARIFF REDUCTIONS AND MORE VIGOROUS TAX COLLECTION WILL ANTAGONIZE POWERFUL INTERESTS THAT BENEFIT FROM THE CURRENT SYSTEM STILL SOME OBSERVERS ARE SURPRISED THAT THE PRESIDENT WHO WAS ELECTED WITH ONLY 235 OF THE POPULAR VOTE HAS GOTTEN AS FAR AS HE HAS ESPECIALLY GIVEN THE DIFFICULTY OF TAKING UNPOPULAR ACTIONS IN A COUNTRY WITH THE PHILIPPINES' RAMBUNCTIOUS LEGISLATORS AND LITIGIOUS CULTURE ONE FOREIGN ECONOMIST IN MANILA SAYS THE ROLLBACK OF THE OIL PRICE INCREASE IS SIMPLY A CASE OF TWO STEPS FORWARD ONE STEP BACK NO ONE IS WRITING MR RAMOS OFF LEAST OF ALL MR RAMOS HIMSELF I CAN ASSURE YOU THE ALTERNATE SOURCES OF REVENUE ARE THERE AND THAT'S PRECISELY WHAT THE IMF IS ASKING ABOUT THE PRESIDENT SAYS I CAN ASSURE YOU THAT WE WILL STAY ON COURSE 9403210068 940321 CONSUMER SENTIMENT INDEX FALLS WASHINGTON THE UNIVERSITY OF MICHIGAN CONSUMER SENTIMENT INDEX SLIPPED A BIT IN EARLY MARCH TO 921 FROM 932 IN FEBRUARY ACCORDING TO MARKET PARTICIPANTS WHO HAVE SEEN THE REPORT THE UNIVERSITY'S INDEX FOR CONSUMER EXPECTATIONS WAS UP HOWEVER TO 849 FROM 835 THE CONSUMER SENTIMENT INDEX HAD ALSO FALLEN IN FEBRUARY AS DID THE CONSUMER CONFIDENCE INDEX PUBLISHED BY THE CONFERENCE BOARD ANALYSTS BLAMED THE DECLINES ON BAD WEATHER 9403210067 940321 BUSINESS BRIEF BANKERS TRUST NEW YORK CORP COMPANY CITES DIFFICULTY IN TRADING FINANCIAL ASSETS BANKERS TRUST NEW YORK CORP SAID MARKET CONDITIONS HAVE BEEN DIFFICULT AND ADVERSELY AFFECTED CERTAIN OF THE CORPORATION'S TRADING POSITIONS BUT SAID THE BANK CONTINUES TO BE PROFITABLE ACCORDING TO ITS 1993 ANNUAL REPORT THE COMMENT IS THE FIRST TIME THAT BANKERS TRUST HAS CONFIRMED IT HAS HAD PROBLEMS IN TRADING FINANCIAL ASSETS WHERE THE BANK EARNS THE BULK OF ITS MONEY THE BANK HAD BEEN THE SUBJECT OF WIDESPREAD RUMORS ABOUT TRADING LOSSES A FEW WEEKS AGO AND WAS FORCED TO ISSUE A STATEMENT SAYING THE COMPANY WAS PROFITABLE THUS FAR IN 1994 IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE SHARES OF BANKERS TRUST CLOSED AT 75 DOWN 1125 MEANWHILE BANKERS TRUST CHAIRMAN CHARLES SANFORD EARNED NEARLY 10 MILLION LAST YEAR ACCORDING TO THE COMPANY'S PROXY STATEMENT A 47 INCREASE FROM 1992 THAT INCLUDES ABOUT 3 MILLION IN A CASH BONUS AND 5 MILLION IN STOCK BONUS LAST YEAR THE COMPANY HAD EARNINGS OF 107 BILLION UP 67 FROM 1992 9403210066 940321 PHOENIX RESOURCE SHARES OKLAHOMA CITY PHOENIX RESOURCE COS SAID GOLDMAN SACHS & CO OFFERED 1160000 PHOENIX RESOURCE COMMON SHARES AT 2850 APIECE GOLDMAN SACHS IS SELLING ALL ITS 27 STAKE IN THE OIL AND GAS COMPANY A SPOKESWOMAN FOR PHOENIX RESOURCE SAID GOLDMAN SACHS HAD HELD DEBT IN A PREDECESSOR COMPANY AND ACQUIRED ITS STAKE IN PHOENIX WHEN THE COMPANY REORGANIZED UNDERWRITERS FOR THE OFFERING ARE BEING MANAGED BY SALOMON BROTHERS INC 9403210065 940321 BUSINESS BRIEF PANHANDLE EASTERN CORP AFFILIATED PARTNERSHIP PLANS NATURAL GAS STORAGE FACILITY PANHANDLE EASTERN CORP SAID A PARTNERSHIP IN WHICH A COMPANY UNIT IS A MEMBER FILED WITH THE FEDERAL ENERGY REGULATORY COMMISSION FOR APPROVAL TO DEVELOP A 24 MILLION NATURAL GAS STORAGE FIELD IN SOUTHWESTERN PENNSYLVANIA THE GAS PIPELINE COMPANY SAID IN HOUSTON THAT THE GENERAL PARTNERSHIP RIVERSIDE GAS STORAGE CO WAS FORMED BY A UNIT OF PANHANDLE EASTERN'S TEXAS EASTERN TRANSMISSION CORP AND A UNIT OF EQUITABLE RESOURCES INC A NATURAL GAS COMPANY BASED IN PITTSBURGH PANHANDLE EASTERN SAID THE FIELD WILL HAVE A WORKING STORAGE CAPACITY OF ABOUT 31 BILLION CUBIC FEET OF GAS AND IS SCHEDULED TO BEGIN STORING GAS IN THE SPRING OF 1995 9403210064 940321 BUSINESS BRIEF CCAIR INC CARRIER REJECTS BID BY MESA AND OFFERS COUNTERPROPOSAL CCAIR INC A COMMUTER CARRIER THAT SERVES AS USAIR EXPRESS SAID IT REJECTED A MESA AIRLINES ACQUISITION OFFER VALUED AT 32 MILLION INSTEAD CCAIR OFFERED A COUNTERPROPOSAL THAT MESA BUY THE COMPANY IN A STOCK DEAL VALUED AT 374 MILLION MESA A REGIONAL CARRIER BASED IN FARMINGTON NM SAID IT DIDN'T HAVE A COMMENT ON CCAIR'S COUNTEROFFER UNDER THE COUNTEROFFER CCAIR BASED IN CHARLOTTE NC PROPOSED THAT MESA PAY ITS SHAREHOLDERS 027 COMMON SHARE OF MESA FOR EACH SHARE OF CCAIR UNDER THE ORIGINAL OFFER MESA SAID IT WOULD EXCHANGE ABOUT 15 MILLION MESA SHARES FOR THE ROUGHLY SEVEN MILLION CCAIR SHARES OUTSTANDING VALUING THEM AT 450 A SHARE IN NASDAQ STOCK MARKET TRADING FRIDAY MESA'S SHARES CLOSED AT 22 DOWN 25 CENTS WHILE CCAIR SHARES ROSE 50 CENTS TO 4875 9403210063 940321 BUSINESS BRIEF DOMINION RESOURCES INC UTILITY UNIT TO OFFER BUYOUT EARLYRETIREMENT PROGRAMS VIRGINIA POWER CO RICHMOND VA SAID IT WILL OFFER AN EARLYRETIREMENT AND A BUYOUT PROGRAM TO SALARIED EMPLOYEES IN A BID TO TRIM STAFF AND CUT COSTS THE ELECTRIC UTILITY UNIT OF DOMINION RESOURCES INC PREDICTED THAT BETWEEN 500 AND 700 EMPLOYEES WILL TAKE ONE OF THE TWO OFFERS VIRGINIA POWER SAID IT PLANS TO OFFER THE SAME PROGRAMS TO ITS 4100 EMPLOYEES REPRESENTED BY THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS IN ADDITION THE COMPANY SAID IT WOULD CONDUCT A COMPREHENSIVE STUDY OF WORKPLACE PRACTICES THIS YEAR IN ORDER TO CUT COSTS AND IMPROVE ITS COMPETITIVE POSITION THE UTILITY WHICH HAS ABOUT 12000 EMPLOYEES HAS CUT 2000 JOBS IN THE PAST FIVE YEARS MAINLY THROUGH ATTRITION 9403210062 940321 BUSINESS BRIEF AMERICAN OILFIELD DIVERS INC BREAKEVEN RESULTS ARE SEEN FOR FISCAL SECOND QUARTER AMERICAN OILFIELD DIVERS INC SAID IT EXPECTS ABOUT BREAKEVEN RESULTS FOR ITS FISCAL SECOND QUARTER WHICH ENDS APRIL 30 FOR THE YEAREARLIER PERIOD THE COMPANY HAD NET INCOME OF 914000 OR 18 CENTS A SHARE ON REVENUE OF 132 MILLION A SPOKESMAN FOR THE LAFAYETTE LA DIVINGSERVICES COMPANY SAID EARNINGS WERE AFFECTED BY HARSH WEATHER IN THE GULF OF MEXICO WHICH LIMITED THE DAYS IN WHICH EMPLOYEES COULD WORK HOWEVER THE SPOKESMAN SAID HE BELIEVES WORK THE COMPANY COULDN'T PERFORM WILL BE PICKED UP IN FUTURE QUARTERS AND NOT LOST PERMANENTLY 9403210061 940321 US PREPARES STEPS TO PUNISH NORTH KOREA HARDER STANCE IS SPARKED BY PYONGYANG'S REFUSAL ON NUCLEAR INSPECTIONS BY WALL STREET JOURNAL REPORTERS THOMAS E RICKS IN WASHINGTON AND STEVE GLAIN IN SEOUL THE US REACTING TO NORTH KOREA'S REFUSAL LAST WEEK TO PERMIT A FULL INSPECTION OF ITS NUCLEAR PROGRAM IS PREPARING TO TAKE A SERIES OF DIPLOMATIC AND MILITARY STEPS TO PUNISH PYONGYANG THE MOVES WHICH FOLLOW A MEETING OF PRESIDENT CLINTON'S NATIONAL SECURITY ADVISERS AT THE WHITE HOUSE SATURDAY APPARENTLY REPRESENT THE END OF THE INCENTIVE PHASE OF THE ADMINISTRATION'S CARROTANDSTICK APPROACH TO THE NORTH KOREAN NUCLEAR PROBLEM I THINK THE NORTH KOREANS ARE GOING TO FORCE US TO DO THE RIGHT THING AND GO TO THE SECURITY COUNCIL FOR A RESOLUTION CENSURING NORTH KOREA SAID GARY MILHOLLIN WHO IS AN ADVOCATE OF A HARDER LINE AND IS DIRECTOR OF THE WISCONSIN PROJECT ON NUCLEAR ARMS CONTROL A PRIVATE RESEARCH GROUP IN ADDITION TO OFFERING CARROTS WE HAVE TO WAVE SOME STICKS OTHERWISE THEY'LL JUST KEEP TAKING CARROTS NORTH KOREA ALSO INDICATED IT WILL BE TAKING A TOUGHER STANCE AFTER STORMING OUT OF TALKS WITH SOUTH KOREA ON SATURDAY PARK YOUNG SU NORTH KOREA'S CHIEF DELEGATE TO THE TALKS SAID THIS CONFRONTATION WILL EVENTUALLY LEAD TO A COLLISION AND FURTHER TO WAR WE ARE FULLY PREPARED TO MEET ANY CHALLENGE A WORD WITH A WORD AND A WEAPON WITH A WEAPON HAVING REACHED AN IMPASSE DESPITE TAKING A CONCILIATORY STANCE IN RECENT MONTHS THE US PLANS TO SEEK A UNITED NATIONS RESOLUTION CALLING ON NORTH KOREA TO PERMIT A FULL INSPECTION OF ITS NUCLEAR FACILITIES TO DETERMINE THE EXTENT OF PYONGYANG'S PURSUIT OF NUCLEAR WEAPONS SECRETARY OF STATE WARREN CHRISTOPHER SAID YESTERDAY BUT FEARING A VETO BY CHINA IN THE UN SECURITY COUNCIL THE US WON'T YET SEEK TO IMPOSE ECONOMIC SANCTIONS ON NORTH KOREA THE US PLAN APPARENTLY IS TO LAY THE GROUNDWORK FOR A FUTURE RESOLUTION ON TRADE SANCTIONS AND IN THE MEANTIME PERSUADE CHINA TO ABSTAIN ON THAT RESOLUTION IF WE WORK AT IT CAREFULLY AND PATIENTLY IN THE UNITED NATIONS AND BRING THE CHINESE ALONG THEN THEY WON'T BLOCK THE IMPOSITION OF SANCTIONS MR CHRISTOPHER SAID ON CBS NEWS' FACE THE NATION THAT MAY BE A LITTLE DIFFERENT FROM THE CHINESE AGREEING TO THEM THE UN MOVES HINGE ON A DECISION BY THE INTERNATIONAL ATOMIC ENERGY AGENCY WHOSE OFFICIALS CONDUCTED THE RECENT NUCLEAR INSPECTION TO CENSURE NORTH KOREA FOR REFUSING TO PERMIT A FULL INSPECTION AND TO REFER THE MATTER TO THE UN THAT ACTION IS EXPECTED TO COME TODAY ALSO REMAINING TO BE WORKED OUT IS THE NATURE OF THE CONTEMPLATED TRADE SANCTIONS IT ISN'T CLEAR THAT THEY NECESSARILY WOULD BE ENFORCED MILITARILY IN AN INTERVIEW AT THE PENTAGON THURSDAY RETIRED ADM DAVID JEREMIAH WHO RECENTLY STEPPED DOWN AS VICE CHAIRMAN OF THE JOINT CHIEFS OF STAFF SAID THERE ARE LOTS OF SANCTIONS THAT HAVE BEEN EFFECTIVE OVER TIME THAT DON'T INVOLVE MILITARY FORCE A US INTELLIGENCE REPORT THAT SOME NORTH KOREAN ARMY UNITS ARE RECEIVING ONLY ONE MEAL A DAY GIVES ANALYSTS ADDITIONAL REASON TO BELIEVE THAT SANCTIONS COULD WORK IN THE MEANTIME SEVERAL OTHER MILITARY STEPS ARE IN THE PIPELINE THE US AND SOUTH KOREA ARE EXPECTED TO ANNOUNCE SOON THAT THE LARGESCALE JOINT MILITARY EXERCISE CALLED TEAM SPIRIT WHICH HAD BEEN SUSPENDED AS AN INCENTIVE TO THE NORTH KOREANS TO ALLOW FULL INSPECTIONS WILL NOW BE REVIVED THE US ALSO IS PREPARING TO SHIP PATRIOT ANTIMISSILE BATTERIES TO SOUTH KOREA AND IT IS DISCUSSING BOLSTERING US DEFENSES IN THE AREA AGAINST CHEMICAL WEAPONS ARTILLERY FIRE AND MINES THE US COMMANDER IN SOUTH KOREA ARMY GEN GARY LUCK HAS IDENTIFIED THESE AREAS AS WEAKNESSES ACCORDING TO PEOPLE WHO HAVE BEEN BRIEFED BY HIM FINALLY THE US MAY SEND ADDITIONAL TROOPS TO AUGMENT THE 37000 AMERICAN SOLDIERS NOW IN SOUTH KOREA MR CHRISTOPHER DECLINED TO RULE OUT SUCH A MOVE WE'RE NOT SEEKING A CONFRONTATION WITH THE NORTH KOREANS BUT IF THEY INSIST ON ONE I'M SURE WE'LL PREVAIL HE ADDED PRESIDENT CLINTON SAID YESTERDAY THAT THERE WAS STILL SOME HOPE THAT NORTH KOREA WOULD ALLOW INSPECTIONS OF ITS NUCLEAR SITES ACCORDING TO THE ASSOCIATED PRESS THE PRESIDENT IN MIAMI FOR A HEALTHCARE FORUM SAID THERE APPEARED TO BE SOME SENTIMENT IN PYONGYANG FOR ENDING ITS REFUSAL TO ALLOW INSPECTIONS OF SUSPECTED WEAPONS FACILITIES TO SOME EXTENT THE BALL IS STILL CLEARLY IN THEIR COURT BUT WE ARE PROCEEDING TO CONSIDER ALL OUR OPTIONS THE PRESIDENT SAID SECURITY OFFICIALS ALSO ARE BRACING FOR ACTIONS SHORT OF WAR BY NORTH KOREA WHICH HAS A HISTORY OF VIOLENT UNPREDICTABLE BEHAVIOR SUCH AS THE 1982 BOMBING OF SOUTH KOREA CABINET OFFICIALS IN RANGOON IN JAPAN SECURITY OFFICIALS HAVE SHARPLY BEEFED UP MEASURES TO PROTECT SOUTH KOREAN PRESIDENT KIM YOUNG SAM DURING HIS VISIT THERE NEXT WEEK AN ATTEMPT ON PRESIDENT KIM'S LIFE OR SOME TERRORIST ACT WOULD BE AN ADEQUATE SUBSTITUTE FOR MILITARY ACTION IF NORTH KOREA WANTS TO BLOW OFF SOME STEAM SAID BRADLEY MARTIN A TOKYOBASED FULBRIGHT SCHOLAR WHO IS WRITING A BOOK ON NORTH KOREA 9403210060 940321 BUSINESS BRIEF HYUNDAI MOTOR CO FIRM SCRAPS PLANS TO BUILD NEW ELANTRA AT QUEBEC PLANT HYUNDAI MOTOR CO SAID IT SCRAPPED PLANS TO BUILD A NEW VERSION OF THE ELANTRA AT A FACILITY IN BROMONT QUEBEC THE AUTO MAKER'S ONLY ASSEMBLY PLANT OUTSIDE KOREA HYUNDAI SHUT THE QUEBEC PLANT IN SEPTEMBER TO PREPARE FOR A NEW VERSION OF THE ELANTRA SEDAN FOR THE 1996 MODEL YEAR THE COMPANY HAD PLANNED TO START RECALLING LAID OFF WORKERS THIS SPRING TO PRODUCE THE CARS FOR THE CANADIAN US AND EUROPEAN MARKETS JOHN WRIGHT SENIOR VICE PRESIDENT OF HYUNDAI'S CANADIAN UNIT SAID A NUMBER OF FACTORS MADE HYUNDAI DECIDE TO BUILD THE NEW ELANTRA IN KOREA WHERE COSTS WILL BE LOWER THE WEAK CANADIAN DOLLAR HAS DRIVEN UP THE COST OF PARTS SINCE THEY ARE PURCHASED FROM THE US AND KOREA IN US DOLLARS AND PROVISIONS IN THE NORTH AMERICAN FREE TRADE AGREEMENT HAVE INCREASED THE DUTY ON IMPORTED PARTS FOR FOREIGN AUTO MAKERS IN CANADA HE SAID MR WRIGHT SAID HE HOPES HYUNDAI WILL FIND SOME OTHER USE FOR THE BROMONT PLANT WHICH WILL REMAIN IDLE IN THE MEANTIME 9403210059 940321 BUSINESS BRIEF MOORCO INTERNATIONAL INC PURCHASE OF FISCHER & PORTER FOR 150 MILLION IS PLANNED MOORCO INTERNATIONAL INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE FISCHER & PORTER CO IN A TRANSACTION VALUED AT APPROXIMATELY 150 MILLION THE ACQUISITION WILL ALLOW MOORCO A HOUSTON SUPPLIER OF FLUIDMEASUREMENT AND PRESSURECONTROL PRODUCTS FOR THE ENERGY INDUSTRY TO DIVERSIFY FISCHER & PORTER ALSO MAKES MEASUREMENT AND CONTROL PRODUCTS BUT ITS GOODS HAVE NO APPLICATION TO THE PETROLEUM INDUSTRY BOTH COMPANIES SAID THAT ABOUT 65 OF THEIR SALES ARE INTERNATIONAL FOR THE SIX MONTHS ENDED NOV 30 MOORCO HAD NET INCOME OF 58 MILLION OR 48 CENTS A SHARE ON REVENUE OF 99 MILLION FOR THE YEAR ENDED DEC 31 FISCHER & PORTER HAD NET OF 11 MILLION OR 19 CENTS A SHARE ON SALES OF 220 MILLION THE ACQUISITION STILL REQUIRES SEVERAL APPROVALS INCLUDING THAT OF FISCHER & PORTER'S BOARD BEFORE IT BECOMES FINAL 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 9403210058 940321 BUSINESS BRIEF TRITON ENERGY CORP PRODUCTION PACT SUBMITTED TO MALAYSIA AND THAILAND TRITON ENERGY CORP DALLAS SAID A PRODUCTIONSHARING CONTRACT THAT IT HAS REACHED WITH CONCERNS IN MALAYSIA AND THAILAND HAS BEEN SUBMITTED TO THE GOVERNMENTS OF THOSE COUNTRIES FOR APPROVAL THE AGREEMENTS THAT A TRITON UNIT HAS WITH THE MALAYSIATHAILAND JOINT AUTHORITY AND A SUBSIDIARY OF PETRONAS THE MALAYSIAN STATE OIL COMPANY COVER PETROLEUM OPERATIONS IN BLOCK A18 ABOUT 700000 ACRES LOCATED IN THE SHALLOW WATERS OF THE GULF OF THAILAND THE PETRONAS UNIT AND TRITON EACH HOLD A 50 INTEREST IN BLOCK A18 UNDER THE PRODUCTIONSHARING AGREEMENT THE TWO ENERGY CONCERNS WOULD FORM A JOINT OPERATING COMPANY TO SERVE AS OPERATOR TRITON SAID IT EXPECTS OPERATIONS TO BEGIN IN JUNE WITH THE ACQUISITION OF SEISMIC DATA FOLLOWED BY EXPLORATION AND APPRAISAL DRILLING 9403210057 940321 SOUTH KOREAN EXPORT OUTLOOK SEOUL SOUTH KOREA'S EXPORTS TO THE US WILL SNAP YEARS OF SLUGGISHNESS THIS YEAR BY RISING 5 YEARTOYEAR TO 19 BILLION THANKS TO SHIPMENTS OF ELECTRONICS GOODS MACHINERY AND AUTOMOBILES A STATERUN TRADE ASSOCIATION SAID THE FORECAST WAS BASED ON EXPECTATIONS THE US ECONOMY WILL SHOW 3 GROWTH THIS YEAR TRIGGERING A RISE OF 10 IN DEMAND FOR IMPORTS THE KOREA FOREIGN TRADE ASSOCIATION SAID SOUTH KOREAN EXPORTS TO THE US ITS SINGLELARGEST EXPORT MARKET HAVE BEEN LETHARGIC SINCE 1989 DROPPING OR RISING LESS THAN 1 EACH YEAR BECAUSE OF AN EROSION IN INTERNATIONAL COMPETITIVENESS 9403210056 940321 BUSINESS BRIEF COLUMBIA REAL ESTATE INVESTMENTS NEGOTIATIONS FOR THE SALES OF MOST ASSETS COMPLETED COLUMBIA REAL ESTATE INVESTMENTS INC COLUMBIA MD SAID IT NEGOTIATED THE SALES OF MOST OF ITS ASSETS AND HAS PENDING CONTRACTS ON THE BALANCE THE COMPANY WHOSE DISSOLUTION AND LIQUIDATION PLAN WAS APPROVED BY SHAREHOLDERS LAST WEEK SAID IT BELIEVES THAT IF ALL THE SALES ARE COMPLETED SHAREHOLDERS SHOULD RECEIVE ABOUT 10 A SHARE SOMEWHAT HIGHER THAN A PREVIOUS ESTIMATE OF 9 TO 925 COLUMBIA SAID IT EXPECTS THAT ALL THE TRANSACTIONS WILL BE COMPLETED IN THE NEAR FUTURE AND THAT A DISTRIBUTION OF ALL OR MOST OF THE LIQUIDATED VALUE OF THE ASSETS WILL BE MADE IN THE NEXT 45 TO 60 DAYS THE COMPANY INVESTS IN RESIDENTIAL MORTGAGES AND OTHER MORTGAGE DERIVATIVE PRODUCTS 9403210055 940321 BUSINESS BRIEF CCX INC COMPANY TO SEEK APPROVAL FOR BANKRUPTCY PROPOSAL CCX INC SAID IT WILL SEEK THE APPROVAL OF ITS BONDHOLDERS AND PRINCIPAL LENDER OF A PREPACKAGED CHAPTER 11 BANKRUPTCY PLAN THE CHARLOTTE NC MAKER OF MESHES FOR SCREENING AND FILTRATION SAID THE PLAN CALLS FOR THE CANCELLATION OF ALL ITS PREFERRED AND COMMON STOCK OUTSTANDING IF CCX OBTAINS THE APPROVAL IT WILL BE ABLE TO FILE A CHAPTER 11 BANKRUPTCY PETITION WITH THE US BANKRUPTCY COURT UNDER CHAPTER 11 OF THE BANKRUPTCY CODE A COMPANY IS PROTECTED FROM CREDITORS WHILE IT REORGANIZES ITS FINANCES A PREPACKAGED PLAN GENERALLY PERMITS A COMPANY TO EMERGE FROM CHAPTER 11 FASTER THAN IT WOULD OTHERWISE CCX SAID IT IS SEEKING A MULTIYEAR BANKING AGREEMENT FOR ABOUT 24 MILLION AND THE CONVERSION OF ALL OF THE COMPANY'S 137 MILLION IN SUBORDINATED DEBT TO EQUITY THROUGH THE FIRST SIX MONTHS ENDED DEC 31 OF ITS CURRENT FISCAL YEAR CCX REPORTED A LOSS OF 406000 OR 12 CENTS A SHARE ON SALES OF 256 MILLION IN EARLY MARCH THE NEW YORK STOCK EXCHANGE SAID TRADING IN CCX'S COMMON AND 5 CUMULATIVE PREFERRED STOCK HAD BEEN SUSPENDED THE BIG BOARD SAID IT WOULD APPLY TO THE SECURITIES AND EXCHANGE COMMISSION TO DELIST THE STOCK CITING A FAILURE TO MEET CERTAIN FINANCIAL CRITERIA 9403210054 940321 BUSINESS BRIEF MYLAN LABORATORIES INC REVENUE IN FOURTH QUARTER WAS UNDER PRICING PRESSURE MYLAN LABORATORIES INC SAID IT WILL REPORT SOFTERTHANEXPECTED FOURTHQUARTER REVENUE BECAUSE OF SEVERE SHORTTERM PRICING PRESSURE IN SOME GENERIC PRODUCTS MYLAN SAID IT EXPECTS TO REPORT FULLYEAR NET INCOME IN LINE WITH THE EARLIER YEAR'S RECORD RESULTS AND IT FEELS STRONGLY THAT FISCAL 1995 WILL ACHIEVE SUBSTANTIAL GAINS IN SALES AND EARNINGS THE PITTSBURGH PHARMACEUTICAL COMPANY REPORTED NET INCOME OF 214 MILLION OR 28 CENTS A SHARE ON REVENUE OF 61 MILLION IN THE FOURTH QUARTER ENDED MARCH 31 1993 FOR THE FULL FISCAL 1993 YEAR NET INCOME WAS 706 MILLION OR 92 CENTS A SHARE ON REVENUE OF 212 MILLION 9403210053 940321 NEW YORK LIFE NET JUMPS 36 NEW YORK NEW YORK LIFE INSURANCE CO SAID NET INCOME ROSE 36 IN 1993 WITH ITS LIFEINSURANCE AND MUTUALFUNDS PRODUCTS SHOWING ESPECIALLY STRONG GROWTH THE COMPANY SAID NET INCOME WAS 368 MILLION UP FROM 271 MILLION A YEAR EARLIER TOTAL INCOME INCLUDING PREMIUMS AND INVESTMENT INCOME WAS UP 6 TO 1556 BILLION THE INSURANCE CONCERN SAID ITS SURPLUS AT THE END OF 1993 WAS 345 BILLION UP FROM 284 BILLION IN 1992 9403210052 940321 BUSINESS BRIEF PHILADELPHIA SUBURBAN CORP MODERATE EARNINGS GROWTH IS SEEN POSSIBLE THIS YEAR PHILADELPHIA SUBURBAN CORP'S CHAIRMAN THINKS THERE IS SOME PROSPECT FOR MODERATE EARNINGS GROWTH FOR THE YEAR AT THE BRYN MAWR PA WATERUTILITY HOLDING COMPANY IN AN INTERVIEW NICHOLAS DEBENEDICTIS WHO IS ALSO PRESIDENT AND CHIEF EXECUTIVE SAID ANALYSTS' CONSENSUS ESTIMATE FOR 1994 EARNINGS OF 130 A SHARE IS ACHIEVABLE ASSUMING A NORMAL SUMMER AND APPROVAL OF A REASONABLE RATE INCREASE THE COMPANY HAS REQUESTED A RATE RISE OF 14 OR 14 MILLION AND EXPECTS A DECISION BY THE END OF THE SUMMER ABOUT HALF OF THE RATEINCREASE REQUEST IS FOR REIMBURSEMENT OF FEDERAL TAXES AND COSTS RELATED TO ACCOUNTING CHANGES THE CONSENSUS ESTIMATE WOULD GIVE THE COMPANY NET INCOME OF ABOUT 15 MILLION IN 1993 PHILADELPHIA SUBURBAN HAD NET OF 138 MILLION OR 127 A SHARE ON ABOUT 5 FEWER SHARES REVENUE THIS YEAR IS EXPECTED TO EXCEED LAST YEAR'S 1012 MILLION BECAUSE OF THE ADDITION OF SOME FASTGROWING SYSTEMS 9403210051 940321 INTERNATIONAL BRIEF MIRROR GROUP NEWSPAPERS PLC CONSORTIUM CLEARED TO BUY MAJORITY OF NEWSPAPER FIRM A GROUP LED BY MIRROR GROUP NEWSPAPERS PLC WAS GIVEN GOVERNMENT CLEARANCE TO BUY A MAJORITY STAKE IN NEWSPAPER PUBLISHING PLC WHICH OWNS THE INDEPENDENT AND INDEPENDENT ON SUNDAY NEWSPAPERS EARLIER THE MIRROR CONSORTIUM HAD WON A BIDDING BATTLE FOR NEWSPAPER PUBLISHING AGAINST INDEPENDENT NEWSPAPERS PLC A DUBLINBASED PUBLISHING COMPANY CONTROLLED BY TONY O'REILLY CHAIRMAN OF HJ HEINZ CO MIRROR GROUP'S PARTNERS IN THE PURCHASE ARE THE ITALIAN NEWSPAPER LA REPUBBLICA THE SPANISH NEWSPAPER EL PAIS AND SOME FOUNDERS OF NEWSPAPER PUBLISHING THE CONSORTIUM WILL OWN ABOUT 66 OF NEWSPAPER PUBLISHING UP FROM 47 PRIOR TO THE TAKEOVER BATTLE MR O'REILLY'S INDEPENDENT NEWSPAPERS WILL OWN A 299 STAKE BUT THERE WAS SPECULATION THAT HAVING LOST THE TAKEOVER BATTLE HE MIGHT SELL HIS HOLDINGS TO THE MIRROR CONSORTIUM 9403210050 940321 ITALIAN INDUSTRIAL PRICES MILAN ITALY'S INDUSTRIAL WHOLESALE SALES INDEX ROSE A REAL OR INFLATIONADJUSTED 6 IN NOVEMBER FROM A YEAR EARLIER THE STATE STATISTICAL INSTITUTE ISTAT SAID THE NOVEMBER FIGURE COMPARED WITH A 13 YEARONYEAR INCREASE IN OCTOBER DOMESTIC WHOLESALE SALES ROSE 23 WHILE SALES TO FOREIGN DESTINATIONS INCREASED 157 IN NOVEMBER ISTAT SAID 9403210049 940321 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AND DOW JONES NEWS SERVICE APPLIED DIGITAL ACCESS INC INITIAL 26 MILLION SHARES VIA ALEX BROWN & SONS INC AND HAMBRECHT & QUIST INC AUTOFINANCE GROUP INC 2 MILLION SHARES VIA CS FIRST BOSTON INC CAMERON ASHLEY INC INITIAL 2 MILLION SHARES VIA ROBINSONHUMPHREY CO CAREER HORIZONS INC INITIAL 3 MILLION SHARES VIA BEAR STEARNS & CO AND ROBERT BAIRD & CO DIGITAL EQUIPMENT CORP 500 MILLION OF PREFERRED STOCK AT 25 PER SHARE VIA LEHMAN BROTHERS INC GASONICS INTERNATIONAL CORP INITIAL 22 MILLION SHARES VIA MONTGOMERY SECURITIES AND HAMBRECHT & QUIST GRUPO EMBOTELLADOR DE MEXICO SA INITIAL 59 MILLION GLOBAL DEPOSITARY SHARES VIA GOLDMAN SACHS & CO GULF SOUTH MEDICAL SUPPLY INC INITIAL 1950000 SHARES VIA WILLIAM BLAIR & CO HOMETOWN BUFFET INC 35 MILLION SHARES VIA MONTGOMERY SECURITIES JDN REALTY CORP INITIAL 59 MILLION SHARES VIA ALEX BROWN & SONS KLM ROYAL DUTCH AIRLINES 185 MILLION COMMON SHARES VIA MERRILL LYNCH & CO MORGAN STANLEY EUROPEAN EMERGING MARKETS FUND INC INITIAL 4 MILLION SHARES VIA MORGAN STANLEY & CO NORTHWEST AIRLINES INC 400 MILLION OF 10YEAR SENIOR DISCOUNT NOTES VIA LEHMAN BROTHERS INC NPS PHARMACEUTICALS INC INITIAL 25 MILLION SHARES VIA PAINEWEBBER INC OMEGA HEALTHCARE INVESTORS INC 3 MILLION SHARES VIA BEAR STEARNS DILLON READ & CO DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND KEMPER SECURITIES INC RHODES INC 25 MILLION SHARES VIA SALOMON BROTHERS INC AND KIDDER PEABODY & CO TCW/DW EMERGING MARKETS OPPORTUNITIES TRUST INITIAL 7 MILLION SHARES OF BENEFICIAL INTEREST VIA DEAN WITTER REYNOLDS INC PHOENIX ARIZ 130 MILLION OF SERIES 1994 VARIOUSPURPOSE IMPROVEMENT BONDS VIA COMPETITIVE BID NEW YORK CITY 6857 MILLION OF FISCAL 1994 BONDS VIA A JP MORGAN SECURITIES INC GROUP PENNSYLVANIA HIGHER EDUCATION FACILITIES AUTHORITY 2823 MILLION OF HEALTHSERVICES REVENUE BONDS INCLUDING 1607 MILLION OF SERIES A OF 1994 BONDS AND 1216 MILLION OF SERIES B OF 1994 BONDS VIA A CS FIRST BOSTON GROUP PHILADELPHIA SCHOOL DISTRICT 160 MILLION OF GENERAL OBLIGATION BONDS INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP VIA A MERRILL LYNCH GROUP OREGON DEPARTMENT OF TRANSPORTATION 95 MILLION OF REVENUE BONDS MBIAINSURED VIA A LEHMAN BROTHERS GROUP HAWAII 91 MILLION OF AIRPORTSYSTEM REVENUE REFUNDING BONDS VIA GOLDMAN SACHS & CO CALIFORNIA PUBLIC WORKS BOARD 82 MILLION OF LEASE REVENUE BONDS VIA A BEAR STEARNS GROUP ANNE ARUNDEL COUNTY MD 75 MILLION OF REVENUE REFUNDING BONDS VIA A GOLDMAN SACHS GROUP 9403210048 940321 DANISH VEHICLE REGISTRATIONS COPENHAGEN DANISH NEWVEHICLE REGISTRATIONS ROSE 632 IN FEBRUARY 1994 COMPARED WITH A YEAR EARLIER TO 10953 FROM 6711 UNITS SAID DANMARKS STATISTIK THE DANISH STATISTICAL AGENCY ACCORDING TO THE STATISTICS AGENCY THE RISE CORRELATES WITH THE UPSWING IN THE DANISH ECONOMY WHICH HAS BEGUN TO SHOW SIGNS OF MOVING OUT OF RECESSION IN THE PAST TWO MONTHS THE LARGEST RISE WAS RECORDED IN THE NEWCAR CATEGORY BACKING UP THE DANISH GOVERNMENT'S HOPES THAT HOUSEHOLD SPENDING IS ON THE RISE 9403210047 940321 BUSINESS BRIEF DOSKOCIL COS OKLAHOMA FIRM TO BUY UNIT OF INTERNATIONAL MULTIFOODS DOSKOCIL COS AN OKLAHOMA CITY MAKER OF PIZZA TOPPINGS AND OTHER MEAT PRODUCTS MOVES INTO FROZEN APPETIZERS AND BURRITOS WITH AN AGREEMENT TO BUY AN INTERNATIONAL MULTIFOODS CORP UNIT FOR ABOUT 135 MILLION THE FROZENFOOD UNIT BEING ACQUIRED FROM MINNEAPOLISBASED INTERNATIONAL MULTIFOODS ALSO MAKES ITALIAN PASTA DISHES IT HAD REVENUE OF ABOUT 185 MILLION IN 1993 ROBERT S WRIGHT THE INTERNATIONAL MULTIFOODS EXECUTIVE WHO RUNS THE OPERATION WILL CONTINUE TO DO SO AT DOSKOCIL FOR DOSKOCIL THE ACQUISITION IS CONSISTENT WITH ITS NEW EMPHASIS ON PROCESSED FOODS WHICH OFFER ATTRACTIVE PROFIT MARGINS SINCE EMERGING FROM BANKRUPTCYLAW PROCEEDINGS IN 1991 THE COMPANY HAS RETRENCHED BY CLOSING HOGPROCESSING PLANTS SEPARATELY DOSKOCIL SAID IT IS STILL SEARCHING FOR A SUCCESSOR TO JOHN T HANES THE COMPANY'S CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT WHO ANNOUNCED HIS RETIREMENT IN OCTOBER 9403210046 940321 WHITEWATER FIGURE TO PLEAD GUILTY TO DEFRAUDING SBA LITTLE ROCK ARK DAVID HALE A TARGET IN THE WHITEWATER INVESTIGATION IS EXPECTED TO PLEAD GUILTY TO ONE COUNT OF MAIL FRAUD AND ONE COUNT OF CONSPIRACY ACCORDING TO A LAWYER INVOLVED IN THE CASE AGAINST HIM MR HALE A FORMER MUNICIPAL JUDGE IS ACCUSED OF COMMITTING FRAUD AGAINST THE SMALL BUSINESS ADMINISTRATION IN A CASE THAT HAS LITTLE TO DO WITH WHITEWATER BUT MR HALE HAS BECOME A TARGET OF THE INVESTIGATION BY SPECIAL COUNSEL ROBERT FISKE BECAUSE HE HAS ALLEGED THAT PRESIDENT CLINTON WHILE GOVERNOR OF ARKANSAS PRESSURED HIM INTO MAKING A 300000 LOAN TO SUSAN MCDOUGAL A PARTNER IN WHITEWATER DEVELOPMENT CORP THE HALE CASE PREVIOUSLY HAD BEEN PROSECUTED BY JUSTICE DEPARTMENT OFFICIALS BUT MR FISKE TOOK IT OVER AFTER HIS APPOINTMENT IN LATE JANUARY BECAUSE OF MR HALE'S ALLEGATIONS AGAINST PRESIDENT CLINTON MR HALE'S TRIAL WAS SET TO BEGIN NEXT MONDAY MR FISKE'S STAFF HAD HOPED TO TRY THE CASE EXPEDITIOUSLY SO THAT MR HALE COULD BE A WITNESS IN THE WHITEWATER INVESTIGATION THE HALE CASE INVOLVED A TANGLED WEB OF FINANCINGS THAT THE GOVERNMENT ALLEGED WAS USED TO PROVE TO THE SBA THAT MR HALE'S CAPITAL MANAGEMENT SERVICES WAS ENTITLED TO ABOUT 900000 IN FEDERALLY BACKED LOANS 9403210045 940321 POLITICS & POLICY CLINTON INDUSTRIAL POLICY STRESSING COOPERATION CAN CLASH WITH ADMINISTRATION'S POPULIST BENT BY GERALD F SEIB AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE SCENE IS REPEATED REGULARLY VICE PRESIDENT AL GORE APPEARS WITH A GROUP OF US INDUSTRIALISTS TO ANNOUNCE A NEW GOVERNMENTBUSINESS PARTNERSHIP TO MARCH FORWARD TOGETHER INTO A BRIGHTER HIGHTECH FUTURE THE FIRST WAS WITH AUTO MAKERS TO BUILD A NEW GREEN CAR THEN CAME CABLE AND TELEPHONE COMPANIES TO BUILD AN INFORMATION SUPERHIGHWAY AND JUST THIS MONTH MR GORE JOINED WITH SEMICONDUCTOR COMPANIES TO RESEARCH COMPUTER CHIPS THE GOAL IS A KIND OF NEWWAVE INDUSTRIAL POLICY WHICH MR GORE CALLS A UNIQUELY AMERICAN MODEL OF GOVERNMENT AND BUSINESS COOPERATION ONE THAT LIKELY WOULD HAVE BEEN REJECTED BY BOTH THE FREEMARKETEERS OF PREVIOUS REPUBLICAN ADMINISTRATIONS AND BY THE BUSINESSSKEPTICS OF PREVIOUS DEMOCRATIC ADMINISTRATIONS YET IN ENTERING THIS NEW ERA OF COOPERATION THE CLINTONITES HAVEN'T CHECKED ALL THEIR POPULIST IMPULSES AT THE DOOR AND BUSINESS LEADERS ARE FINDING THAT THOSE LEANINGS SOMETIMES CLASH WITH THE DEMOCRATS' NEW DESIRE TO COOPERATE THE TENSIONS SOMETIMES COME OUT IN DEALINGS WITH THE VERY INDUSTRIES THE ADMINISTRATION IS TRYING HARDEST TO COOPERATE WITH THE TELECOMMUNICATIONS INDUSTRY FOR EXAMPLE IS BEING JAWBONED TO TAKE UPON ITSELF THE EXPENSIVE TASK OF WIRING EVERY SCHOOL AND HOSPITAL IN THE COUNTRY WHILE THE ADMINISTRATION PROMOTES ALLIANCES SUCH AS THE ONE AMONG THE AUTO MAKERS TO DEVELOP A CLEANERRUNNING CAR IT ALSO PLEDGES TO TAKE A HARDER LOOK AT ALL SORTS OF POTENTIAL ANTITRUST VIOLATIONS AND WHILE THE WHITE HOUSE WANTS TO HELP CUTTINGEDGE BUSINESSES SUCH AS THE BIOTECHNOLOGY INDUSTRY THE INDUSTRY COMPLAINS THAT THE PRESIDENT'S HEALTHCARE PLAN WITH ITS PROVISIONS FOR AN ADVISORY COUNCIL ON BREAKTHROUGH DRUGS AND POSSIBLE PRICE CONTROLS HAS DRIVEN AWAY INVESTORS THERE'S A CLEAR CONTRADICTION BETWEEN THE POPULIST AND INDUSTRIALPOLICY TENDENCIES OF THE CLINTON CAMP ASSERTS DECKER ANSTROM PRESIDENT OF THE NATIONAL CABLE TELEVISION ASSOCIATION THE ANXIETIES THAT RUN BELOW THE SURFACE OF BOTH GOVERNMENT AND BUSINESS RAISE A LARGER QUESTION IS IT POSSIBLE IN A COUNTRY WITH AMERICA'S SOCIAL AND POLITICAL STRUCTURE TO HAVE A CLEAR AND CONSISTENT JAPANESESTYLE INDUSTRIAL POLICY MOST ANALYSTS ARE SKEPTICAL IF YOU WERE TO LOOK AT OTHER COUNTRIES WHERE BUSINESS AND GOVERNMENT SEEM TO BE UNITED A CORPORATIST INDUSTRIAL POLICY WHERE THE INTERESTS OF THE LITTLE MAN ARE LARGELY IGNORED IS POSSIBLE SAYS PAUL KRUGMAN A PROFESSOR AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY WHO HAS WRITTEN EXTENSIVELY ABOUT INDUSTRIAL POLICY BUT THERE'S A BIG POPULIST STREAK IN THE HISTORY OF AMERICAN POLITICS DEMOCRATS AND THE CLINTON ADMINISTRATION IN GENERAL DON'T GET ALONG WELL WITH THE CORPORATE WORLD NOWHERE ARE THESE STRAINS CLEARER THAN IN THE CABLE INDUSTRY WHERE A SHAKY PROPOSED MERGER BETWEEN TELECOMMUNICATIONS INC AND BELL ATLANTIC CORP COLLAPSED JUST HOURS AFTER THE FEDERAL COMMUNICATIONS COMMISSION WHICH IS HEADED BY A GORE FRIEND AND WAS INTERPRETING LEGISLATION MR GORE CHAMPIONED IN THE SENATE ORDERED A CUT IN CABLE RATES THE COMPANIES' CRITICISM OF THE FCC ACTION HAS OPENED THE DOOR FOR INDUSTRY OFFICIALS SUCH AS MR ANSTROM TO COMPLAIN ABOUT A DISCONNECTION BETWEEN THE ADMINISTRATION'S DESIRE TO HAVE THE INFORMATION SUPERHIGHWAY SPEED AHEAD AND ITS BACKING OF RATE CUTS ALL THAT COSTS MONEY AT A TIME WHEN RECENT REGULATORY DECISION WILL CUT THE CABLE INDUSTRY'S REVENUE BY 17 MR ANSTROM CONTENDS I THINK THERE'S AN ENORMOUS AMOUNT OF ANXIETY AND CONCERN IN OUR INDUSTRY ADMINISTRATION OFFICIALS COUNTER THAT WHILE THEY DON'T WANT TO STIFLE DEVELOPMENT OF NEW SERVICES AND TECHNOLOGIES THEY ALSO DON'T WANT TO SEE THEM DEVELOPED WITH FUNDS RAISED BY MONOPOLISTIC RATES ON CABLE TELEVISION BUSINESS LEADERS MEANWHILE HAVE THEIR OWN CONTRADICTORY FEELINGS ABOUT COOPERATING WITH GOVERNMENT MANY HAVE GROUSED FOR YEARS THAT THEIR JAPANESE AND EUROPEAN COUNTERPARTS GET MORE COOPERATION FROM THEIR GOVERNMENTS YET THE CLINTON ADMINISTRATION HAS OFTEN FOUND BUSINESS LEERY AND SUSPICIOUS OF ITS INTENTIONS THAT HAS BEEN A COMPLICATION IN THE GREEN CAR VENTURE IN AN INTERVIEW MR GORE DISCLOSES THAT HE CONDUCTED A SERIES OF UNPUBLICIZED MEETINGS WITH THE BIG THREE'S CHIEF EXECUTIVE OFFICERS TO GET THEM TO AGREE TO JOIN FORCES WITH THE GOVERNMENT IN THE NEW 10YEAR JOINT PROJECT TO DEVELOP A MORE ENERGYEFFICIENT AND ENVIRONMENTALLY SOUND CAR MR GORE SAYS THE MEETINGS SOME WITH THE CHIEF EXECUTIVES INDIVIDUALLY AND AT LEAST TWO IN THE WHITE HOUSE WITH THEM AS A GROUP WERE NECESSARY BOTH TO CONVINCE THE AUTO MAKERS THAT THE GOVERNMENT WOULD LIVE UP TO ITS LONGTERM FUNDING COMMITMENT AND TO ASSUAGE FEARS THEY WOULD SOMEHOW BE PENALIZED IF THEY FAILED TO DEVELOP A NEW CAR IN A DECADE'S TIME MR GORE SAYS THAT AS THEY SAT AROUND A TABLE IN HIS OFFICE DOWN THE HALL FROM THE OVAL OFFICE THE EXECUTIVES WONDERED IS THERE A HIDDEN AGENDA ARE THEY GOING TO USE THIS AGAINST US WHAT ABOUT THE CONSEQUENCES OF THE INDUSTRY PUBLICLY SAYING WE WILL AGREE TO TRY AND REACH THAT GOAL BUT THE BIGGEST PROBLEM MR GORE SAYS IS THAT THERE WAS ON BOTH SIDES OF THE RELATIONSHIP AN ACCUMULATED BACKLOG OF MISTRUST AND ANIMOSITY AND CONFRONTATION AND ADVERSARIAL AGENDAS THAT BOTH SIDES NEEDED TO WORK THROUGH SENIOR ADMINISTRATION OFFICIALS SAY THAT THE GLOBALIZATION OF THE MARKETPLACE IN THE 1990S DICTATES THAT SOME SORT OF NEW RELATIONSHIP BETWEEN GOVERNMENT AND BUSINESS BE WORKED OUT THEY ARGUE THAT THERE HAS BEEN A THINLY DISGUISED COOPERATIVE RELATIONSHIP BETWEEN GOVERNMENT AND LARGE SEGMENTS OF THE BUSINESS COMMUNITY FOR DECADES DEFINED FIRST BY THE INDUSTRIAL PUSH OF WORLD WAR II AND THEN BY THE ENORMOUS DEFENSE BUDGETS AND MILITARYINDUSTRIAL COMPLEX OF THE COLD WAR NOW THE BUSINESSGOVERNMENT RELATIONSHIP HAS TO COME OUT OF THE CLOSET SAYS LABOR SECRETARY ROBERT REICH ONE OF THE COUNTRY'S LEADING THINKERS ON THE SUBJECT OF BUSINESSGOVERNMENT RELATIONS AND THAT CREATES SOME AWKWARDNESS ON ALL SIDES THE ADMINISTRATION WHICH PREFERS TO CALL ITS VISION A COMPETITIVENESS POLICY RATHER THAN INDUSTRIAL POLICY INSISTS THAT IT WILL USE WHAT MR GORE CALLS A LIGHT TOUCH IN ASSISTING BUSINESS ONE REASON FOR THE LIGHT TOUCH IS THAT AS A SELFSTYLED NEW DEMOCRAT MR CLINTON DOESN'T WANT TO BE ACCUSED OF INTERFERING TOO MUCH IN THE FREE MARKET BUT ANOTHER REASON IS FINANCIAL THE ADMINISTRATION SIMPLY DOESN'T HAVE A LOT OF MONEY AT ITS DISPOSAL TO PAY FOR A HEAVIER ROLE IN SOME OF ITS DREAM VENTURES RECENTLY FOR EXAMPLE MR GORE ENERGY SECRETARY HAZEL O'LEARY COMMERCE SECRETARY RONALD BROWN AND A ROOMFUL OF BUSINESS EXECUTIVES LAUNCHED A NEW PROGRAM OF JOINT GOVERNMENTBUSINESS RESEARCH INTO SEMICONDUCTORS THE AIR WAS FILLED WITH HIGHFLUNG RHETORIC MR BROWN CALLED IT A HISTORIC PARTNERSHIP AND MR GORE HAILED A NEW LEVEL OF COOPERATION BUT WHEN PRESSED MS O'LEARY CONCEDES THAT ALL THE HOOPLA IS OVER A MERE 48 MILLION APPROPRIATION WHICH COULD GROW TO AS MUCH AS 25 MILLION OVER A LONGER PERIOD THE BROADER PROBLEM FOR THE ADMINISTRATION IS RECONCILING THE NEW URGE TO BUILD BRIDGES AND THE OLD INCLINATION TO TELL BUSINESS HOW TO BEHAVE SOME BUSINESS LEADERS SEE THOSE DESIRES COLLIDING IN THE ADMINISTRATION'S HEALTHCARE REFORM PLANS BIOTECHNOLOGY COMPANIES FOR INSTANCE REPRESENT THE KIND OF CUTTINGEDGE AMERICANLED TECHNOLOGY THAT THE ADMINISTRATION SAYS IT WANTS TO HELP CREATE THE JOBS OF TOMORROW BUT INDUSTRY LEADERS COMPLAIN THAT THE UNCERTAINTIES CREATED BY THE CLINTON HEALTH PLAN ARE HELPING SLOW INVESTMENT IN THE INDUSTRY THEY CITE AMONG OTHER THINGS ONE STUDY SHOWING THAT MORE THAN 15 BILLION WAS INVESTED IN INDUSTRY PUBLIC OFFERINGS IN 1992 BUT THAT THE TOTAL DROPPED BELOW 15 BILLION IN 1993 EVEN THOUGH THERE WERE MORE COMPANIES ENGAGED IN MOREEXPENSIVE RESEARCH IN THE LATTER YEAR WHEN YOU'RE A GROWING INDUSTRY THE CURVE SHOULD HAVE GONE UP STEEPLY SAYS PETER TEELEY WASHINGTON REPRESENTATIVE OF AMGEN INC A LEADING BIOTECHNOLOGY FIRM AMGEN'S OWN STOCK HAS FALLEN TO ABOUT 40 FROM A HIGH OF 78 TO ADDRESS MANY BUSINESS CONCERNS THE ADMINISTRATION IS SLOWLY BUILDING AN ORGANIZATIONAL STRUCTURE THAT GUARANTEES MORE HIGHLEVEL DIALOGUE BETWEEN THE GOVERNMENT AND HIGHTECH BUSINESS LEADERS FOR YEARS TO COME FOR INSTANCE A NEW NATIONAL INFORMATION INFRASTRUCTURE ADVISORY COUNCIL MADE UP OF COMMUNICATIONS AND CABLE COMPANY REPRESENTATIVES AND GOVERNMENT OFFICIALS BEGAN MEETINGS LAST MONTH THE COMMERCE DEPARTMENT HAS SET UP A TECHNOLOGY COMMITTEE TO BRING TOGETHER GOVERNMENT AND BIG THREE ENGINEERS TO WORK ON THE GREEN CAR AND IS ASSIGNING ONE OFFICIAL THE FULLTIME TASK OF HELPING SMALLER COMPANIES GET A PIECE OF GOVERNMENT RESEARCH GRANTS EARMARKED FOR THE PROJECT BUT THE ADMINISTRATION ALSO MAKES CLEAR THAT IT EXPECTS SOME THINGS IN RETURN THE ADMINISTRATION HEEDED CORPORATE CALLS TO CUT THE FEDERAL BUDGET DEFICIT LOOSEN EXPORT CONTROLS PASS THE NORTH AMERICAN FREE TRADE AGREEMENT AND GET TOUGHER IN OPENING JAPANESE MARKETS LABOR SECRETARY REICH SAYS NOW HE SAYS THE ADMINISTRATION HOPES FOR SOME AID ON SUCH ISSUES AS OVERHAULING THE HEALTHCARE SYSTEM AND IMPROVING WORKER TRAINING AND EDUCATION PROGRAMS EVERY STEP ALONG THE WAY WE HAVE SOUGHT TO HELP AMERICAN BUSINESS IN A FAR MORE ACTIVIST MANNER THAN PREVIOUS ADMINISTRATIONS HE SAYS THE QUESTION IS WHAT KIND OF ROLE WILL BUSINESS TAKE AT THIS JUNCTURE 9403210044 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT INTERVIEW LUCASVISION GEORGE LUCAS CREATOR OF STAR WARS' TALKS ABOUT THE CONVERGENCE OF ENTERTAINMENT AND TECHNOLOGY BY THOMAS R KING NICASIO CALIF IF YOU HAD TO PICK JUST ONE PERSON WHO BEST UNDERSTANDS THE WORLDS OF ENTERTAINMENT AND TECHNOLOGY AND WHO EASILY TRAVERSES BOTH IT WOULD BE GEORGE LUCAS THE CREATOR OF THE STAR WARS AND INDIANA JONES FILM TRILOGIES HAS TRADED IN HIS HOLLYWOOD MONIKER OF PRODUCERDIRECTOR TO BECOME THE ULTIMATE HYPHENATE THINKERDOER AS OWNER OF LUCASFILM LTD AND SEVERAL RELATED HIGHTECHNOLOGY COMPANIES HE HAS FIRMLY PLANTED HIS FEET IN BOTH WORLDS AND HAS STAKED HIS PERSONAL FUTURE AND PROFESSIONAL REPUTATION ON A MELDING OF THE TWO THIS ISN'T NEWFOUND RELIGION YEARS AGO HE LEFT BEHIND A HOLLYWOOD WHOSE PETTINESS AND LACK OF VISION HE ABHORRED AND MOVED HIS COMPANY TO NORTHERN CALIFORNIA CLOSER TO SILICON VALLEY MUCH THE WAY HE CREATED A NEW STANDARD FOR SPECIAL EFFECTS WITH STAR WARS IN 1977 THE 49YEAROLD FILMMAKER IS LEADING THE WAY IN HELPING TO DEFINE JUST HOW EMERGING TECHNOLOGIES WILL AFFECT MOVIEMAKING AND ENTERTAINMENT IN GENERAL HOLLYWOOD COULD BE A WINNER HE SAYS IF STUDIOS COUGH UP VITAL RESEARCH AND DEVELOPMENT FUNDS TECHNOLOGY COULD HELP TO DRAMATICALLY REDUCE THE SPIRALING COST OF MAKING FILMS WHILE OFFERING THE PROMISE OF MAKING THEM MORE EXCITING WITH HIS RECENT TV SERIES THE YOUNG INDIANA JONES CHRONICLES MR LUCAS SAVED THE EXPENSE OF CREATING ELABORATE PERIOD SETS BY USING COMPUTERS TO RECREATE THE BACKGROUNDS HE ALSO USED THEM TO MAKE A HANDFUL OF PEOPLE LOOK LIKE A CROWD WINNING NO FRIENDS AMONG EXTRAS PERHAPS BUT GAINING THE ATTENTION OF STUDIO BEAN COUNTERS AN INTERACTIVE FIBEROPTIC NETWORK CONNECTS THE NORTH CAROLINA PRODUCTION SITE OF HIS LATEST MOVIE RADIOLAND MURDERS WITH THE POSTPRODUCTION FACILITIES AT HIS SKYWALKER RANCH HERE MR LUCAS VISITS THE SET EVERY MORNING WITHOUT LEAVING THE RANCH CHATTING WITH THE CREW VIA A TWOWAY VIDEO HOOKUP THAT ALLOWS INTERACTION IN REAL TIME USING COMPRESSED DIGITAL VIDEO THE ENTERTAINMENT THAT COMES FROM LUCASFILM MOVIES TELEVISION SHOWS COMPUTER GAMES AND MORE WILL CERTAINLY PLAY A ROLE IN THE MUCHVAUNTED MULTIMEDIA FUTURE MR LUCAS RECENTLY SAT DOWN WITH THE WALL STREET JOURNAL PEERED IN HIS CRYSTAL BALL AND HAD THIS TO SAY THE WALL STREET JOURNAL WHERE DO YOU THINK WE ARE HEADED IN THE NEXT FIVE 10 15 YEARS MR LUCAS THERE'S A LOT OF HYPE OUT THERE BUT THERE'S SOMETHING REAL HAPPENING IT'S THE UPGRADING OF TELECOMMUNICATIONS IN THIS COUNTRY AND THAT WILL HAVE A TREMENDOUS AND POWERFUL IMPACT ON THE WAY WE LIVE OUR LIVES A LOT OF THE RUMBLING RIGHT NOW IS ABOUT HOME SHOPPING AND VIEWERONDEMAND VIDEO AND THOSE KINDS OF THINGS REALLY ARE GOING TO HAPPEN IF CABLE OPERATORS REALLY WANT TO GROW THE BUSINESS THEY'LL HAVE TO COMPETE WITH THE EXISTING HOMEVIDEO MARKET BUT A LOT OF THE KEY ISSUES HAVE TO DO WITH PRICING IF CABLE OPERATORS GET GREEDY AND CHARGE SAY 20 AN HOUR FOR PROGRAMMING ESPECIALLY OLD PROGRAMMING I DON'T THINK MUCH IS GOING TO HAPPEN BUT IF THEY GET IT DOWN TO THE LEVEL OF 1 AN HOUR THERE WILL BE AN INSTANTANEOUS REVOLUTION THAT WILL WIPE OUT THE HOMEVIDEO BUSINESS IN A YEAR WSJ DO YOU THINK PEOPLE REALLY WANT ALL THESE SERVICES MR LUCAS DEFINITELY THEY DON'T WANT IT AT 20 AN HOUR THEY DON'T WANT IT AT 10 AN HOUR BUT THEY'LL TAKE IT AT 1 AN HOUR THEY'LL PAY THAT FOR MOVIESONDEMAND TV SHOWSONDEMAND I THINK THE ONLY THINGS YOU'LL GET ON THE TV NETWORKS WILL BE INFOCOMMERCIALS TALK SHOWS AND NONDRAMATIC PROGRAMMING I DON'T THINK THEY'LL BE ABLE TO AFFORD TO PUT DRAMATIC PROGRAMS ON THE AIR IT'S JUST TOO EXPENSIVE PROGRAMMING THAT INVOLVES CREATIVE TALENT WILL END UP ON PAYONDEMAND THAT'S DIFFERENT FROM PAYPERVIEW WHICH WILL STILL BE USED FOR BIG EVENTS LIKE CHAMPIONSHIP FIGHTS FOR THOSE THEY CAN CHARGE 20 OR 40 AN HOUR BUT TO SELL MURPHY BROWN ROSEANNE OR ANY MOVIES THE PRICE WILL HAVE TO BE MAINTAINED AT A VERY LOW RATE BEFORE PEOPLE WILL BUY INTO IT AND THEY WILL BUY INTO IT THEY WOULD JUST AS SOON NOT GO OUT TO THE VIDEO STORE IF THEY CAN GET IT AT HOME WSJ WHAT ABOUT A GENERATIONAL FACTOR WILL OLDER AMERICANS RESIST THE NEW TECHNOLOGY AND LEAVE THE 500CHANNEL TV SURFING TO COMPUTERLITERATE KIDS MR LUCAS I DON'T SEE IT HAPPENING THAT WAY I SEE IT LIKE THE CELLULAR PHONE AND THE FAX MACHINE PEOPLE SAY I DON'T GET IT I DON'T NEED IT BUT THEN THEY'LL SEE IT BEING USED AND SAY I HAVE TO HAVE ONE OF THESE THINGS AND IT WILL BE HARD NOT TO PEOPLE WILL DISCOVER THAT FINDING INFORMATION ON A COMPUTER WILL BE INFINITELY EASIER THAN PROGRAMMING A VCR IS TODAY PLUS AUDIOCOMMAND TECHNOLOGY IS HERE THAT IS GOING TO BE A MAJOR FACTOR YOU CAN TELL YOUR TV I WANT TO WATCH MURPHY BROWN OLDER AMERICANS I THINK WILL REALLY GO FOR THE HOMESHOPPING SERVICES AS THEY DEVELOP THE REALITY IS THAT MANY OF THEM WOULD LIKE TO ORDER UP THINGS AT HOME AND NOT HAVE TO GO OUT WSJ BESIDES TV SHOWS MOVIES AND HOME SHOPPING WHAT ELSE MIGHT PEOPLE ORDER UP ON THESE NEW TV SYSTEMS MR LUCAS WELL I HAVE A GAME COMPANY AND I THINK VIEWONDEMAND GAMES WILL TAKE OFF PRETTY QUICKLY IT'S A LITTLE BIT PROBLEMATICAL ABOUT HOW IT'S GOING TO WORK BUT IT SEEMS OBVIOUS THAT HOME DELIVERY OF GAMES IS A NATURAL BECAUSE IT'S A DIGITAL MEDIUM THAT YOU'RE DEALING WITH INTERACTIVE GAMES THAT INVOLVE MORE THAN ONE PLAYER I CALL THEM PARTYLINE GAMES WILL BE POPULAR YOU'RE PLAYING WITH TWO OR THREE OTHER PEOPLE AT THE SAME TIME AT VARIOUS PLACES OVER THE PHONE VISUAL TELECOMMUNICATIONS AND VIDEO CONFERENCING WILL ALSO ADD TO THIS IF YOU'RE PLAYING A GAME WITH TWO OR THREE OTHER PEOPLE YOU CAN SEE THEM ALL AS YOU PLAY IT'S JUST LIKE BEING NEXT TO THEM WSJ WHAT IMPACT WILL DIGITAL TECHNOLOGY HAVE ON HOLLYWOOD AS IT RELATES TO MOVIE MAKING MR LUCAS THE COST OF MAKING MOVIES IS GOING TO COME DOWN MORE FILMMAKERS ARE GOING TO BE ABLE TO TELL BIGGER STORIES TAKE THE AGE OF INNOCENCE IT'S HARD FOR MOST FILMMAKERS TO GET A MOVIE LIKE THAT OFF THE GROUND TODAY THE MARKET ISN'T BIG ENOUGH AND THE COST OF DOING A PERIOD MOVIE LIKE THAT IS TOO EXPENSIVE BUT ON THE YOUNG INDY TV SERIES WHICH WAS ALSO A PERIOD SHOW WITH HORSES CARRIAGES COMPLETELY DIFFERENT LANDSCAPES COSTUMES WE HAD EXACTLY THE SAME KINDS OF PRODUCTION VALUES AS AGE OF INNOCENCE BUT WE DID IT FOR 10 OF THE COST THANKS TO DIGITAL TECHNOLOGY WE USED THE COMPUTER TO MAKE CROWD SCENES WHEN WE ONLY HAD A HANDFUL OF ACTORS AND TO REPLICATE BACKGROUNDS THAT WEREN'T REALLY THERE THAT JUST MEANS THAT MORE PEOPLE WILL BE ALLOWED TO MAKE BIG FILMS LIKE THE AGE OF INNOCENCE THAN JUST MARTY SCORCESE A MAN WHO'S AT THE TOP OF THE FIELD WITH A HUGE AMOUNT OF CLOUT MORE PEOPLE WILL BE ABLE TO DO SOMETHING THAT'S A LITTLE BIT OUT OF THE ACTION OR OTHER HIGHLY COMMERCIAL GENRES STUDIOS WILL HOPEFULLY BE ABLE TO MAKE MORE MOVIES AND THEY WILL THEN BE ABLE TO TAKE MORE CHANCES AND MAKE MORE INTERESTING FILMS WSJ HOW IMPORTANT IS THAT MR LUCAS LISTEN A LOT OF THE FILMS THAT I'VE MADE HAVE BEEN OFFBEAT REALLY HIGHRISK MOVIES STAR WARS WAS A COMPLETELY HIGHRISK NOBODYOUTTHEREUNDERSTANDSIT KIND OF MOVIE ONCE IT CAME OUT IT WAS A BIG HIT BECAUSE IT WAS SO FRESH AND DIFFERENT BECAUSE IT WAS SO HIGHRISK WSJ WHAT KIND OF SAVINGS ARE WE TALKING ABOUT MR LUCAS WE DID A SHOT IN THE TV SERIES FOR 1500 THAT WOULD HAVE COST A STUDIO 30000 IF THEY WERE DOING THE SAME SHOT FOR A FEATURE FILM RADIOLAND MURDERS THE MOVIE WE'RE WORKING ON RIGHT NOW IS AN EXPERIMENT FOR US IN THAT WE'RE APPLYING THE COSTSAVING TECHNOLOGY WE LEARNED ON THE TV SERIES TO THE BIG SCREEN I DON'T THINK WE CAN GET THAT SAME SHOT DONE FOR 1500 BUT WE MAY BE ABLE TO GET IT TO 10000 OR 12000 BUT EVEN GOING TO 12000 FROM 30000 IS A MAJOR LEAP AND THIS IS JUST THE FIRST STEP WE'RE INVENTING NEW TECHNOLOGY THAT I FEEL VERY CONFIDENT WILL ALLOW US TO CUT THAT COST IN HALF AGAIN WITHIN THE NEXT COUPLE OF YEARS WE'LL BE ABLE TO TAKE WHAT WAS A 30000 SHOT AND DO IT ON THE BIG SCREEN IN FULL RESOLUTION FOR 6000 OR 7000 WSJ TELL ME ABOUT RADIOLAND MURDERS MR LUCAS THE BUDGET IS UNDER 10 MILLION THE AVERAGE COST OF MAKING A MOVIE TODAY IS 30 MILLION IT'S THE KIND OF MOVIE I LIKE TO MAKE IT'S FRANTIC AND CRAZY AND FUN BUT IT'S DIFFICULT TO GET A MOVIE LIKE THIS MADE BECAUSE IT DOESN'T FIT INTO ANY OF THE CATEGORIES THAT STUDIOS LIKE THIS IS A REALLY WACKO OFFBEAT COMEDY SET IN 1939 AND IT DOESN'T HAVE ANY MOVIE STARS THIS ISN'T A ROMANTIC COMEDY WITH TOM HANKS AND MEG RYAN SO THE STUDIO LOOKS AT IT AS THIS EXTREME WILD CARD IF IT WERE TO COST 30 MILLION NO ONE WOULD MAKE IT NOT EVEN WITH ME ATTACHED AS PRODUCER BUT THERE'S THIS CHANCE IT COULD BREAK OUT UNIVERSAL PICTURES WILL DISTRIBUTE IT MAYBE IN THE FALL WSJ AMONG THE STUDIOS IN HOLLYWOOD HOW DO YOU RATE THE VARIOUS MANAGEMENTS AND CORPORATE CULTURES WHEN IT COMES TO MELDING ENTERTAINMENT AND TECHNOLOGY MR LUCAS THEY'RE ALL STRUGGLING TO FIGURE OUT WHAT THEY'RE DOING WHAT THEY SHOULD BE DOING THEY COME UP AND WE TALK ABOUT THINGS BUT THE FUNNY THING IS NOT MANY OF THEM LISTEN THEY'RE SPENDING THEIR MONEY IN THE CRAZIEST WAYS THEY WON'T PUT IT WHERE IT HAS TO GO IN TERMS OF INVESTING IN THE TECHNOLOGY THEY FIGURE SOMEBODY ELSE WILL DO IT WE'RE NOT TALKING ABOUT HUGE SUMS OF MONEY 10 20 30 MILLION BUT IT WOULD SAVE THEM HUNDREDS OF MILLIONS OF DOLLARS IF THEY WOULD JUST STEP UP TO THE PLATE AND DO IT NOW YOU'RE NOT GOING TO SEE GIANT OVERWHELMING PROFITS COMING FROM MULTIMEDIA FOR A NUMBER OF YEARS BUT THE INVESTMENT HAS TO BE MADE NOW WSJ BESIDES THE FOLKS HERE AT LUCASFILM WHO ARE THE VISIONARIES IN HOLLYWOOD MR LUCAS THERE ARE A LOT OF PEOPLE WORKING DOWN THERE BUT THERE ISN'T ANYBODY THAT COMES TO MIND THAT I WOULD SAY HERE'S SOMEBODY WHO'S REALLY GOT THE PICTURE THE STUDIOS ARE TRYING TO FIGURE OUT WHAT TO DO AND THEY'RE MAKING A LOT OF INTERESTING DECISIONS IT'S FUNNY I'VE BEEN IN THE GAME BUSINESS FOR 15 YEARS AND NOW ALL OF A SUDDEN ALL THE STUDIOS ARE JUMPING IN THEY DON'T UNDERSTAND THE MARKETPLACE OR WHO THE PLAYERS ARE OR THAT THE PLAYERS ARE BIGGER THAN THEY ARE WSJ WHAT WILL GOING TO THE MOVIES BE LIKE IN THE NEXT CENTURY MR LUCAS OLDER THEATERS WILL BE GONE I THINK TODAY'S MULTIPLEXES ARE GOING TO EXPAND AND BECOME LARGER ENTERTAINMENT CENTERS THAT ALSO HAVE IMAX THEATERS AND MAYBE 3D THEATERS THERE ARE GOING TO BE BIGGER HIGHERQUALITY IMAGES AND BETTER SOUND THERE WILL BE A MUCH HIGHER QUALITY OF PRESENTATION THINGS LIKE OUR THX SOUND SYSTEM IN THEATERS WILL ADD TO THAT WSJ SOME PEOPLE PREDICT A RISE IN INTERACTIVE THEATERS WHERE AUDIENCE MEMBERS PUSH BUTTONS TO DETERMINE VARIOUS CHANGES IN A PLOT TO AFFECT THE OUTCOME OF THE MOVIE WHAT DO YOU THINK OF THAT CONCEPT MR LUCAS I THINK THAT'S SMELLOVISION PEOPLE DON'T WANT TO DO THAT PEOPLE DO WANT TO HAVE AN INTERACTIVE EXPERIENCE BUT I THINK THEY WANT TO PLAY INTERACTIVE GAMES WE'VE GOT A CDROM GAME CALLED REBEL ASSAULT WHERE PLAYERS ACTUALLY GET INTO THE MOVIE AT ANY GIVEN MOMENT PLAYERS HIT A BUTTON OR TURN LEFT AND THE ACTION CHANGES THE ACTION SHIFTS ACCORDING TO THE WAY EACH PLAYER RESPONDS TO CERTAIN COMMANDS THAT IS AN INTERACTIVE MOVIE I CALL IT A GAME BUT SOMEBODY ELSE WILL CALL IT AN INTERACTIVE MOVIE IF YOU WANT TO SEE THE FUTURE REBEL ASSAULT IS THE FUTURE THESE GAMES ARE GOING TO BECOME MORE ARTICULATE MORE SOPHISTICATED AND HAVE HIGHERQUALITY RESOLUTION THERE WILL BE BETTER IMAGES MORE CONVERSATIONS WITH THE CHARACTERS AND AN APPEARANCE OF AN UNLIMITED ABILITY TO MOVE AROUND BUT IT WILL BE BASICALLY THE SAME THING WSJ ISN'T THE GAME MARKET KIND OF A LIMITED BUSINESS MR LUCAS HARDLY REBEL ASSAULT JUST CAME OUT AT CHRISTMAS AND WE'VE ALREADY SOLD ABOUT 400000 UNITS BEFORE THIS THE INDUSTRY SAW ANY CD GAME THAT SOLD OVER 50000 AS VERY STRONG WE CAN'T GET IT TO THE STORES FAST ENOUGH AND IT'S SELLING THROUGH BETTER IN EUROPE THAN IT IS HERE MORE IMPORTANTLY WE'VE OBVIOUSLY HIT A BRAND NEW POPULATION OF GAME PLAYERS WITH IT FOR HARDCORE GAMERS REBEL ASSAULT ISN'T THEIR CUP OF TEA BUT THERE'S A WHOLE MARKET OF PEOPLE WHO WANT TO BE ABLE TO SIT DOWN AND HAVE AN INTERACTIVE EXPERIENCE THIS IS SORT OF THE JURASSIC PARK OF CD GAMES WSJ IS THERE ANY DANGER THAT NEW TECHNOLOGY POSES FOR HOLLYWOOD MR LUCAS SURE I THINK YOU CAN MAKE COOKIECUTTER MOVIES WITH COMPUTERS AND I'M CERTAIN SOME PEOPLE WILL START DOING THAT TALENT IS EXPENSIVE AND AT THE SAME TIME THINKING IS HARD BUT COMPUTERS OR NO COMPUTERS MOVIES WILL ALWAYS BE ABOUT STORYTELLING I THINK YOU'RE GOING TO FIND THAT THE THINGS THAT ARE WORTHWHILE WILL INVOLVE THE SLIGHTLY PSYCHOTIC STATE OF A WRITER THAT PRODUCES THE MOST INTERESTING THINGS TO WATCH IF YOU TAKE THE TWIST OUT OF MOVIES YOU'VE LOST THE INTEREST OF YOUR AUDIENCE WSJ THE COMPUTERGENERATED DINOSAURS THAT YOUR COMPANY'S INDUSTRIAL LIGHT & MAGIC DIVISION CREATED FOR JURASSIC PARK LEFT AUDIENCES DUMBSTRUCK WHAT WAS YOUR REACTION WHEN YOU FIRST SAW THEM MR LUCAS WE DID A TEST FOR STEVEN SPIELBERG AND WHEN WE PUT THEM UP ON THE SCREEN I HAD TEARS IN MY EYES IT WAS LIKE ONE OF THOSE MOMENTS IN HISTORY LIKE THE INVENTION OF THE LIGHT BULB OR THE FIRST TELEPHONE CALL A MAJOR GAP HAD BEEN CROSSED AND THINGS WERE NEVER GOING TO BE THE SAME YOU JUST CANNOT SEE THEM AS ANYTHING BUT REAL IT'S JUST IMPOSSIBLE MAYBE 20 YEARS FROM NOW 50 YEARS FROM NOW THEY WILL LOOK CLUMSY BUT I'M NOT SURE EVEN THAT WILL HAPPEN I THINK WE MAY HAVE REACHED A LEVEL HERE WHERE WE HAVE ACTUALLY CREATED REALITY WHICH OF COURSE IS WHAT WE'VE BEEN TRYING TO DO ALL ALONG WSJ FANS OF STAR WARS ARE EAGERLY AWAITING THE NEXT TRILOGY OF MOVIES SOME HAVE BEEN HOPING THE NEXT MOVIE MIGHT BE READY FOR RELEASE IN 1997 THE 20YEAR ANNIVERSARY OF THE FIRST MOVIE MR LUCAS THAT'S POSSIBLE I PLAN TO START WORK ON THE SCREENPLAYS SOON AND HOPE TO BE IN PRODUCTION ON THE TRILOGY WITHIN THE NEXT TWO YEARS I THINK THEY'LL BE DONE IN THE NEXT FOUR TO FIVE YEARS BUT IT REALLY DEPENDS ON HOW FAST WE CAN MAKE THESE TECHNOLOGICAL CHANGES THERE ARE A LOT OF INTERESTING ASPECTS TO THE NEXT STORIES BUT IF I WERE TO DO THEM THE WAY I'D DONE THE OTHER STAR WARS FILMS THEY WOULD BE ASTRONOMICALLY EXPENSIVE OVER 100 MILLION THE FIRST STAR WARS FILM COST LESS THAN 10 MILLION NOBODY CAN AFFORD TO MAKE A FILM FOR 100 MILLION TODAY SO WE HAVE TO SORT OF REINVENT THE WHEEL MOST OF WHAT I'M WORKING FOR IS TO BE ABLE TO DO THE MORE FANTASYORIENTED HIGHIMAGINATION MOVIES AND BE ABLE TO ACCOMPLISH THEM WITH A REASONABLE AMOUNT OF MONEY IT'S ALL SORT OF DEPENDENT ON HOW FAST THE NEW TECHNOLOGY FALLS INTO PLACE BUT IT'S COMING ALONG PRETTY FAST NOW MR KING IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9403210043 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT ALTERED STATES BUYING BASICS YOU'VE DECIDED TO JOIN THE NEW AGE HERE'S WHERE TO START BY JIM CARLTON SO YOU WANT TO BUY THE MEANEST MULTIMEDIA MACHINE OUT THERE OR AT LEAST SOMETHING THAT ALLOWS YOU TO TASTE THIS NEW WORLD EVERYBODY IS TALKING ABOUT BUT WHAT DO YOU BUY WHERE DO YOU EVEN START FIRST ACCEPT ONE THING THE NEW WORLD OF MULTIMEDIA WHERE COMPUTERS ARE NOW POWERED WITH THE ABILITY TO DISPLAY SNAZZY GRAPHICS VIDEO AND STEREO SOUND IS A BAFFLING ONE COMPUTERS ARE POURING IN TO THE MARKET IN ALL SIZES AND CONFIGURATIONS AND ADDING TO THE MADNESS IS THE BLIZZARD OF NEW SOFTWARE ENHANCEMENTS AND PERIPHERALS DESIGNED TO RUN ON THESE NEWFANGLED MACHINES A LOT OF PEOPLE JUST DON'T KNOW WHAT THEY WANT SIGHS CLARENCE CASTRO A SALESMAN IN THE COMPUTER DEPARTMENT OF A SEARS ROEBUCK & CO STORE IN SAN BRUNO CALIF ALTHOUGH DIVIDED IN THEIR LOYALTIES THOSE ON THE CUTTING EDGE OF THE NEW TECHNOLOGY PROGRAMMERS COMPUTER MAKERS AND OTHER GADGET HOUNDS PROVIDE INSIGHTS ABOUT WHAT PEOPLE SHOULD LOOK FOR AS WELL AS SOME OF THE POTENTIAL PITFALLS HERE IS SOME OF THEIR ADVICE MOST SIMPLY A COMPUTER WITH A CDROM DRIVE CDROM STANDS FOR COMPACT DISKREAD ONLY MEMORY THIS IS BASICALLY A DEVICE THAT READS DATA STORED ON A COMPACT DISK FOR DISPLAY ON THE COMPUTER SCREEN BESIDES DISPLAYING TEXT CDROM ALSO PLAYS BOTH STILL AND MOVING PICTURES AND SOUND AS WELL A CDROM DISK FOR EXAMPLE MAY HAVE AN ENTIRE SET OF ENCYLOPEDIAS STORED ON IT THIS LETS THE USER CALL UP A PAGE ON SAY DINOSAURS AND NOT ONLY READ ABOUT THEM BUT ALSO SEE AND HEAR WHAT THEY WERE LIKE SIMILARLY A CDROM DISK ON FAMILY HEALTH COULD SHOW AN ANIMATED VIEW OF THE HUMAN BODY COMPLETE WITH PUMPING HEART AND INFLATING LUNGS EXPECT TO SPEND 3000 FOR A HIGHPOWERED ALLPURPOSE MULTIMEDIA SYSTEM THIS WILL INCLUDE NOT ONLY THE COMPUTER BUT ALSO A MONITOR CDROM DRIVE SOUND SYSTEM AND SUCH ENHANCEMENTS AS AN EXPANDED HARD DRIVE THIS DOESN'T MEAN YOU HAVE TO GO ALL OUT BUT MOST EXPERTS WARN NOT TO TRY TO GET A MULTIMEDIA PC ON THE CHEAP BECAUSE SECONDRATE MONITORS WON'T DISPLAY VIDEO WELL AND INEXPENSIVE SPEAKERS WILL RESULT IN POOR SOUND QUALITY SPEND A FEW MORE DOLLARS AND BE A LOT HAPPIER SAYS CHUCK FARNHAM A MULTIMEDIASOFTWARE DEVELOPER IN SAN JOSE CALIF ASKING TECHIES TO JUDGE THE BEST MULTIMEDIA PC IS AKIN TO ASKING BASEBALL JUNKIES TO RANK THEIR FAVORITE TEAM THE BIGGEST DISPUTE WHETHER TO BUY AN APPLE COMPUTER INC MACINTOSH OR AN IBMCOMPATIBLE PC MOST IMPARTIAL EXPERTS BELIEVE THAT IN QUALITY OF MULTIMEDIA PRESENTATION THE TWO ARE ABOUT EQUAL SO THE ARGUMENTS USUALLY BOIL DOWN TO THESE IBMCOMPATIBLES ARE BETTER BECAUSE THERE ARE MORE PROGRAMS WRITTEN FOR THEM SINCE THEY RUN ON THE MICROSOFT CORP WINDOWS OPERATING SYSTEM WHICH COMMANDS SOME 90 OF THE PC MARKET MACS ARE BETTER BECAUSE THEY ARE EASIER TO OPERATE ANDY HERTZFELD WHO IS SOMETHING OF A LEGEND IN SILICON VALLEY FOR HAVING HELPED DEVELOP APPLE'S FIRST MACINTOSH A DECADE AGO IS A MAC DIEHARD HIS FAVORITE MULTIMEDIA COMPUTER A MACINTOSH QUADRA 660 AV AUDIOVISUAL WHICH FEATURES SUCH GOODIES AS A BUILTIN DOUBLESPEED DRIVE FOR CDROM AND PLENTY OF STORAGE ALL FOR AROUND 2100 MONITOR NOT INCLUDED THE 14INCH SONY CORP MONITORS HE PREFERS START AT ABOUT 400 MR HERTZFELD NOW SOFTWARE CHIEF OF GENERAL MAGIC INC A SOFTWARE CONSORTIUM IN MOUNTAIN VIEW CALIF SAYS THE QUADRA 660 IS EASY TO PICK APART AND PUT TOGETHER TRANSLATION IT'S SIMPLE TO OPERATE HE ADDS IT'S GOT ALL THE INTERFACES YOU NEED FOR MULTIMEDIA TRANSLATION IT HAS RECOGNIZABLE PICTURES ON THE SCREEN SUCH AS A TRASH CAN FOR DUMPING UNWANTED FILES ALLOWING EVEN COMPUTER NOVICES TO NAVIGATE INTUITIVELY THROUGH THE COMPUTER'S OPERATING SYSTEM ANOTHER QUADRA FAN GARY HARE A PRODUCER OF CDROM INTERACTIVE TITLES IN SAUSALITO CALIF WOULDN'T USE AN IBMCOMPATIBLE PC HE SAYS BECAUSE IT CAN TAKE THE REST OF YOUR LIFE TO SET UP AS FOR THE QUADRA HE ADDS YOU CAN BE DUMB AND SET IT UP NOW THE OTHER SIDE MR FARNHAM SAYS IBMCOMPATIBLE PCS PERFORM SOME FUNCTIONS BETTER THAN A MACINTOSH SUCH AS CREATING A THREEDIMENSIONAL IMAGE ON THE SCREEN ONE OF MY FAVORITE THINGS TO DO IS CREATE BUSINESS CARDS ON THE COMPUTER THAT COME SPINNING AROUND OUT OF THE SCREEN IN A 3D BLOCK CONTAINING THE LETTERS OF MY NAME MR FARNHAM SAYS HIS MULTIMEDIA FAVORITES AST RESEARCH INC'S AST ADVANTAGE ADVENTURE MINITOWER WHICH SELLS FOR ABOUT 2900 INCLUDING A MONITOR AND DELL COMPUTER CORP'S DIMENSION WHICH RUNS ABOUT 2700 WITH MONITOR ALTHOUGH MR FARNHAM SAYS THESE COMPUTERS OFFER MANY OF THE SAME FEATURES AS RIVAL PRODUCTS SUCH AS COMPAQ COMPUTER CORP'S PRESARIO 600 AND 800 CDS SERIES AND INTERNATIONAL BUSINESS MACHINES CORP'S PS/1 HE BELIEVES AST AND DELL OFFER SUPERIOR TECHNICAL SUPPORT FOR THE INEVITABLE PROBLEMS THE COMPUTER'S HARDDISK DRIVE USUALLY PERMANENTLY INSTALLED INSIDE THE COMPUTER ALLOWS YOU TO QUICKLY STORE AND RETRIEVE DATA DISK DRIVES ARE MEASURED IN TERMS OF THEIR STORAGE CAPACITYSPECIFICALLY IN MEGABYTES ONE MEGABYTE EQUALS ABOUT A MILLION CHARACTERS HARD DRIVES RANGE FROM ABOUT 160 TO 340 MEGABYTES TO PUT THIS INTO PERSPECTIVE 160 MEGABYTES EQUALS THE STORAGE CONTENT OF ABOUT 32 DICTIONARIES IT'S BEST TO GET AS MUCH HARD DRIVE AS POSSIBLE BECAUSE MULTIMEDIA PROGRAMS EAT UP A LOT OF STORAGE SPACE THE CDROM TITLES THEMSELVES PLAY ON A SEPARATE DRIVE WHICH CAN USUALLY HANDLE AROUND 600 MEGABYTES AMONG THE BIGGEST PCS ON THE MARKET IN TERMS OF STORAGE ARE AST'S ADVANTAGE WHICH HAS 340 MEGABYTES OF HARD DRIVE AND COMPAQ'S PRESARIO 600 AND 800 CDS SERIES WITH UP TO 340 MEGABYTES MR HERTZFELD RECOMMENDS HAVING AT LEAST 600 MEGABYTES OF HARDDRIVE CAPACITY YOU CAN GET THAT BY BUYING AN EXTRA DRIVE AN EXTERNAL BOX ABOUT THE SIZE OF A TOASTER THAT CONNECTS TO THE PC MR FARNHAM SAYS HE GETS HIS EXTRA DRIVES FROM APS TECHNOLOGIES INC A MAILORDER HOUSE IN KANSAS CITY MO WHICH SELLS A QUANTUM 170MEGABYTE DRIVE FOR 289 AND EXTRA DRIVES IN INCREMENTS OF 80 MEGABYTES FOR 127 EACH THE CDROM DRIVE'S SPEED IN BOTH RUNNING PROGRAMS AND TAPPING INTO DIFFERENT FILES WITHIN THE PROGRAMS IS CRUCIAL MOST NEWER CDROMS COME WITH A DOUBLESPEED DRIVE WHICH IS ESSENTIAL FOR PLAYING VIDEO AND SOUND SMOOTHLY DOUBLESPEED IN ESSENCE BROADENS THE PIPE THROUGH WHICH A CDROM FUNNELS DATA THE CDROM SHOULD ALSO BE ABLE TO PULL A FILE UP IN LESS THAN FOURTENTHS OF A SECOND SO THE USER CAN MOVE QUICKLY FROM SAY ONE PAGE IN AN ENCYCLOPEDIA FILE TO ANOTHER A FEW TRIPLE AND EVEN QUADRUPLESPEED DRIVES ARE COMING OUT BUT THE EXPERTS SAY THEY AREN'T NEEDED BECAUSE ALMOST ALL CDROM PROGRAMS ARE DESIGNED FOR SINGLE OR DOUBLESPEED DRIVES THE EXPERTS ALSO ADVISE BUYING A PC THAT HAS A BUILTIN CDROM DRIVE ALTHOUGH ALL THE BIG COMPUTER COMPANIES OFFER PCS THAT ARE AS THEY SAY MULTIMEDIA READY THESE CAN OPERATE CDROM PROGRAMS ONLY IF A CDROM DRIVE IS BOUGHT SEPARATELY AND THEN ATTACHED TO THE MACHINE AND IT'S A HASSLE EVEN FOR COMPUTER HACKS TO SET ONE OF THESE DRIVES UP YOU CAN LOSE A LOT OF HAIR TRYING TO PUT ONE IN SAYS TED JULIAN AN ANALYST FOR INTERNATIONAL DATA CORP A FRAMINGHAM MASS MARKETRESEARCH FIRM BUT THERE'S A DOWNSIDE TO HAVING A CDROM INSIDE THE COMPUTER WHAT DO YOU DO WHEN IT BREAKS YOU HAVE TO TAKE THE WHOLE COMPUTER IN TO GET IT FIXED MR FARNHAM HAS BOUGHT CDROM DRIVES SEPARATELY IN PART BECAUSE IT'S EASIER TO TAKE THEM IN FOR REPAIRS HE RECOMMENDS A SEPARATE CDROM DOUBLESPEED DRIVE FROM MEDIAVISION INC FREMONT CALIF THAT SELLS WITH SPEAKERS FOR ABOUT 300 TOSHIBA CORP OF JAPAN ALSO SELLS A HIGHLY REGARDED DOUBLESPEED CDROM DRIVE FOR 499 WHEN IT COMES TO MONITORS THINK OF ONLY ONE THING PIXELS PIXELS ARE TINY LIGHTCARRYING DEVICES THAT PROVIDE RESOLUTION ON A COMPUTER SCREEN THE MORE PIXELS YOU HAVE THE CLEARER THE PICTURE MONITORS HAVE RESOLUTIONS GOING AS HIGH AS 1000 BY 1000 PIXELS BUT 680 BY 480 IS SUFFICIENT AS IS A 13 OR 14INCH SCREEN IN FACT BUYING A SUPERRESOLUTION SCREEN MIGHT BE A WASTE BECAUSE MOST SOFTWARE PROGRAMS DON'T TAKE ADVANTAGE OF THE ADDITIONAL PIXELS PRICES FOR MONITORS RANGE FROM 400 TO THOUSANDS OF DOLLARS MOST EXPERTS RECOMMEND SONY MONITORS COSTING UP TO 1000 ALL THE CURRENT MULTIMEDIA COMPUTERS SUFFER FROM TECHNOLOGICAL LIMITATIONS THEY ARE UNABLE FOR EXAMPLE TO RETRIEVE FILES INSTANTANEOUSLY FULLSCREEN VIDEO QUALITY IS RELATIVELY POOR AND PCS CAN'T DISPLAY MOVING IMAGES ON A FULL SCREEN THEY HAVE TO BE CONDENSED TO A SMALL WINDOW ABOUT THE SIZE OF FOUR POSTAGE STAMPS TO SOMEONE WHO IS A COUCH POTATO THAT IS NOT VERY IMPRESSIVE MR HERTZFELD SAYS BUT THERE ARE SOME SOLUTIONS FOR ABOUT 375 AN ADDIN CARD CALLED REEL MAGIC MADE BY SIGMA DESIGNS FREMONT CALIF PROVIDES MOVING PICTURES ON THE ENTIRE SCREEN APPLE MICROSOFT AND OTHER COMPUTER COMPANIES ARE ALL WORKING TO IMPROVE VIDEO QUALITY AS CHIPS BECOME MORE POWERFUL OVER THE NEXT THREE TO FIVE YEARS INDUSTRY ANALYSTS EXPECT GLITCHES INCLUDING ACCESS DELAYS AND FLICKERING VIDEO TO DISAPPEAR MEANWHILE SPECIAL MULTIMEDIAEDITING SOFTWARE CAN ENHANCE THE VALUE OR FUN OF MULTIMEDIA MACHINES MOUNTAIN VIEW CALIFBASED ADOBE SYSTEMS INC'S PHOTO SHOP WHICH RETAILS FOR ABOUT 695 ALLOWS THE USER TO TOUCH UP PHOTOS YOU CAN GET RID OF THAT DOUBLE CHIN FOR INSTANCE OR GIVE YOUR GRANDMOTHER A MUSTACHE EASTMAN KODAK CO'S PHOTO CD CAN ALSO DO DIGITAL TRICKS WITH SNAPSHOTS IT COSTS 30 FOR THE BLANK CD PLUS 1 PER PICTURE LOADED ON SCANNERS NEEDED TO DISPLAY THE PHOTOS DIGITALLY COME SEPARATELY AND MR FARNHAM RECOMMENDS THE SCANNERS MADE BY EITHER MICROTEK RESEARCH & READY SYSTEMS SANTA CLARA CALIF OR SHARP CORP JAPAN EACH COSTING AROUND 1400 APPLE'S QUICKTIME ALLOWS YOU TO EDIT VIDEO AND COMES WITH THE MACINTOSH AT NO EXTRA COST IF YOU DON'T WANT A PERSONAL COMPUTER TO RUN PROGRAMS LIKE WORDPROCESSING OR SPREADSHEETS AND YOU AREN'T LOOKING FOR MULTIMEDIA FUNCTIONS SUCH AS PHOTO AND VIDEO EDITING A VIDEOGAME PLAYER WITH A CDROM ATTACHMENT MAY BE SUFFICIENT IT CERTAINLY CAN BE CHEAPER YOU CAN BUY SOME VIDEOGAME PLAYERS WITH A CDROM ADDITION FROM SEGA OF AMERICA FOR INSTANCE FOR AS LITTLE AS 200 BUT SOME OF THE MOST HEAVILY PROMOTED CDROM VIDEOGAME PLAYERS HAVE BEEN GETTING THE COLD SHOULDER FROM CONSUMERS THE CDI MULTIMEDIA MACHINE FROM PHILIPS ELECTRONICS NV OF THE NETHERLANDS 650 WITH FULL VIDEO CAPABILITY IS CONSIDERED OVERPRICED AND UNDERPOWERED SO IS THE 500 INTERACTIVE MULTIPLAYER FROM 3DO CO REDWOOD CITY CALIF EVEN AFTER A 200 PRICE CUT LAST MONTH THE 3DO PLAYER ALSO SUFFERS FROM A DEARTH OF SOFTWARE TITLES AND SLOW PLAY ESPECIALLY COMPARED WITH THE RAPID JAGUAR A GAME PLAYER FROM ATARI CORP OF SUNNYVALE CALIF JAGUAR HOWEVER DOESN'T YET HAVE MUCH SUPPORT FROM SOFTWARE DEVELOPERS BECAUSE THEY WORRY THAT ATARI ISN'T FINANCIALLY STRONG ENOUGH TO MARKET IT MR CARLTON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU 9403210042 940321 WHO'S NEWS SCHREMPP TO SUCCEED REUTER AT DAIMLER NEWS MAGAZINE SAYS BONN JUERGEN SCHREMPP HAS BEEN TAPPED TO SUCCEED EDZARD REUTER AS CHAIRMAN OF DAIMLERBENZ AG NEXT YEAR ACCORDING TO A REPORT TO BE PUBLISHED TODAY IN THE GERMAN MAGAZINE DER SPIEGEL MR SCHREMPP 49 YEARS OLD IS CURRENTLY CHAIRMAN OF THE DAIMLER SUBSIDIARY DEUTSCHE AEROSPACE AG AND HAS FREQUENTLY BEEN MENTIONED AS A LIKELY CANDIDATE TO SUCCEED MR REUTER WHO IS DUE TO RETIRE IN 1995 AT THE AGE OF 67 DAIMLER OFFICIALS COULDN'T BE REACHED FOR COMMENT ON THE REPORT BY SPIEGEL ADVANCE COPIES OF WHICH WERE MADE AVAILABLE TO NEWS ORGANIZATIONS OVER THE WEEKEND DEUTSCHE AEROSPACE OFFICIALS WOULD NEITHER CONFIRM NOR DENY THE CONTENTS OF THE REPORT THE QUESTION OF MR REUTER'S SUCCESSOR HAS LONG BEEN A TOPIC OF HOT SPECULATION BECAUSE OF THE POSSIBLE IMPLICATIONS FOR A STRATEGIC REORGANIZATION OF DAIMLER WHEN MR REUTER'S TENURE ENDS ONCE HAILED AS A STAR AMONG GERMAN INDUSTRIALISTS MR REUTER HAS INCREASINGLY COME UNDER CRITICISM FOR LEADING DAIMLER DOWN A PATH OF EXTENSIVE DIVERSIFICATION SPENDING OVER EIGHT BILLION MARKS 474 BILLION FOR ACQUISITIONS MR REUTER TRANSFORMED DAIMLER FROM A SHARPLY FOCUSED AND HIGHLY PROFITABLE MAKER OF AUTOMOBILES TO A SPRAWLING TECHNOLOGY CONGLOMERATE WITH PRODUCTS RANGING FROM REFRIGERATORS TO SATELLITES FIGHTER BOMBERS AND PASSENGER CARS THE STRATEGY HAS LED TO STEADILY SLUMPING RESULTS AT THE COMPANY ACCORDING TO DER SPIEGEL MR REUTER'S RETIREMENT AS MANAGEMENT BOARD CHAIRMAN WILL NOT HOWEVER PUT AN END TO HIS STRATEGY THE OUTGOING CHAIRMAN IS SLATED TO TAKE OVER AS CHAIRMAN OF THE SUPERVISORY BOARD NEXT YEAR A POSITION CURRENTLY HELD BY DEUTSCHE BANK AG MANAGEMENT BOARD SPOKESMAN HILMAR KOPPER THAT WOULD ENABLE MR REUTER TO KEEP CONTROL OVER THE STRATEGIC DIRECTION OF THE COMPANY 9403210041 940321 BUSINESS BRIEF SMITHKLINE BEECHAM PLC UNIT TO SELL CEPACOL LINE OF PRODUCTS TO JB WILLIAMS SMITHKLINE BEECHAM PLC SAID ITS CONSUMER HEALTHCARE UNIT AGREED TO SELL ITS CEPACOL LINE OF MOUTHWASH AND LOZENGES TO CLOSELY HELD JB WILLIAMS COS GLEN ROCK NJ CEPACOL WILL CONTINUE TO BE MANUFACTURED BY MARION MERRELL DOW INC THE BRAND HAD SALES OF 18 MILLION IN 1993 MARION MERRELL DOW WILL CONTINUE TO SELL CEPACOL OUTSIDE THE US AND PUERTO RICO SMITHKLINE BASED IN LONDON SAID THE SALE IS PART OF ITS PROGRAM TO CONCENTRATE ON ITS MAINSTREAM OVERTHECOUNTER HEALTHCARE PRODUCTS BUSINESS JB WILLIAMS IN LATE 1992 PURCHASED A PORTFOLIO OF MEN'S PERSONALCARE PRODUCTS FROM SMITHKLINE 9403210040 940321 FDA POSES QUESTIONS REGARDING MAKEUP OF GLYCOMED DRUG ALAMEDA CALIF GLYCOMED INC HAS RECEIVED QUESTIONS FROM THE FOOD AND DRUG ADMINISTRATION REGARDING THE CHEMICAL MAKEUP AND TOXICOLOGY OF ASTENOSE A LEADING GLYCOMED COMPOUND PRESIDENT BRIAN ATWOOD SAID GLYCOMED FILED AN INVESTIGATIONAL NEW DRUG APPLICATION WITH THE FDA IN FEBRUARY IN EFFECT ASKING PERMISSION TO BEGIN HUMAN CLINICAL TRIALS OF ASTENOSE A DRUG TO PREVENT RESTENOSIS OR CONSTRICTION OF ARTERIES FOLLOWING ANGIOPLASTY IF THE FDA DOESN'T HAVE QUESTIONS A CLINICAL TRIAL MAY GO FORWARD 30 DAYS AFTER THE APPLICATION WAS FILED BUT MR ATWOOD SAID IN AN INTERVIEW THAT THE AGENCY FORMALLY NOTIFIED THE BIOTECHNOLOGY COMPANY ON THURSDAY THAT IT NEEDED MORE INFORMATION ABOUT THE COMPOUND BEFORE HUMAN TESTS CAN BEGIN THEY RAISED ISSUES WE HAVE TO ADDRESS ISSUES OF CHEMISTRY OR HOW WE DEFINE THE MOLECULE AND ISSUES OF TOXICITY ITS ANTICOAGULANT PROFILE MR ATWOOD SAID ASTENOSE A NOVEL CARBOHYDRATEBASED DRUG IS A MODIFIED VERSION OF THE CLASSIC ANTICOAGULANT DRUG HEPARIN WHICH IS USED TO THIN THE BLOOD DURING HEART ATTACKS OR SURGERY HOWEVER HEPARIN TENDS TO CAUSE BLEEDING COMPLICATIONS AND ITS EFFECTS ARE HARD TO REVERSE GLYCOMED HAS DESIGNED ASTENOSE TO LESSEN ITS HARSHER ANTICOAGULANT EFFECTS BY UP TO 95 MR ATWOOD SAID HOWEVER HE ADDED IF YOU USE IT AT HIGH ENOUGH DOSES IT LOOKS AND ACTS LIKE HEPARIN IN TERMS OF POSSIBLE BLEEDING MR ATWOOD SAID GLYCOMED STILL HOPES TO ENTER ASTENOSE INTO CLINICAL TRIALS THIS SPRING ONCE IT HAS ANALYZED AND ANSWERED FDA'S QUESTIONS IN ROCKVILLE MD AN FDA SPOKESMAN DECLINED TO COMMENT SPECIFICALLY ON GLYCOMED'S DRUG APPLICATION HOWEVER HE SAID IT'S NOT UNUSUAL FOR US TO HAVE COMMUNICATION BACK AND FORTH WITH COMPANIES DURING ALL PHASES OF DRUG DEVELOPMENT INCLUDING IND SUBMISSION CLINICAL TRIALS AND REGULATORY REVIEW 9403210039 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT WHERE THE MONEY IS DON'T START THE EULOGY THE CONVENTIONAL WISDOM IS THAT THE HOMEVIDEO BUSINESS AND MOVIE THEATERS ARE IN DEEP TROUBLE DON'T BE SO SURE BY THOMAS R KING HOLLYWOOD ONCE THE DIGITAL FUTURE IS UPON US ITS DESIGNERS PREDICT THE HOMEVIDEO BUSINESS WILL HIT THE SKIDS MOVIETHEATER ATTENDANCE THEY ADD WILL ALSO PLUNGE AND WHY NOT AMERICANS WILL HAVE FANTASTIC ENTERTAINMENT SYSTEMS IN THEIR LIVING ROOMS WITH MOVIETHEATERQUALITY SOUND AND SCREENS THAT FILL AN ENTIRE WALL THEY SAY NEW MOVIES WILL HAVE THEIR PREMIERES ON PAYPERVIEW AND EVERYONE WILL ORDER UP OLD ONES ON DEMAND JUST PUSH A BUTTON AND THE SILENCE OF THE LAMBS WILL BEGIN THE ONLY QUESTION SEEMS TO BE WHO WILL MAKE THE POPCORN THIS SCENARIO HAS HOMEVIDEO RETAILERS AND MOVIETHEATER EXECUTIVES ON THE DEFENSIVE THEY SAY IT DOESN'T MAKE SENSE OR AT LEAST IS OVERBLOWN BUT THEY ARE ALSO MOVING TO PROTECT THEMSELVES AGAINST IT THEATER OWNERS ARGUE THAT PEOPLE WILL ALWAYS LOVE GOING OUT TO THE MOVIES THAT NO INHOME THEATER SYSTEM WILL BE ABLE TO DUPLICATE THAT SHARED COMMUNAL EXPERIENCE THEY NOTE THAT WHILE ADMISSIONS HAVE DROPPED IN THE PAST FEW YEARS BOXOFFICE REVENUES ARE AT RECORD LEVELS THOUGH THAT'S PARTLY BECAUSE THEY HAVE NUDGED UP PRICES MOVIE THEATERS ARE NOT GOING TO CRASH ON THE INFORMATION SUPERHIGHWAY SAYS BILL KARTOZIAN PRESIDENT OF THE NATIONAL ASSOCIATION OF THEATER OWNERS IN LOS ANGELES HIGH VALUE THE HOMEVIDEO INDUSTRY SAYS IT TOO HAS A BRIGHT FUTURE SOME 57 MILLION PEOPLE VISIT VIDEO STORES EACH WEEK AND THEY ENJOY THE EXPERIENCE THE SERENDIPITY OF COMING ACROSS AN UNEXPECTED TITLE THAT STRIKES THEIR FANCY RETAILERS SAY THEY CITE A STUDY BY THE CONFERENCE BOARD A BUSINESSRESEARCH GROUP IN NEW YORK SHOWING THAT HOME VIDEO IS PERCEIVED TO BE THE NO 2 VALUE IN AMERICA SECOND ONLY TO CHICKEN PEOPLE WOULD RATHER HAVE VALUE BEFORE CONVENIENCE SAYS DAWN WIENER PRESIDENT OF THE VIDEO SOFTWARE DEALERS ASSOCIATION WESTLAKE VILLAGE CALIF NOT EVERYONE IS SO SURE JEFFREY KATZENBERG CHAIRMAN OF WALT DISNEY STUDIOS SAID RECENTLY THAT VIDEOONDEMAND WILL SUCCEED BECAUSE GOING TO THE VIDEO STORE IS A BOTHER AND THEY DON'T HAVE WHAT YOU WANT 70 OF THE TIME THE PRESIDENT OF SONY CORP'S COLUMBIA TRISTAR HOME VIDEO SUBSIDIARY RECENTLY LEFT TO TAKE A JOB AT AMERITECH CORP ONE OF THE BABY BELLS INVESTING HEAVILY IN NEW DELIVERY SYSTEMS AND ALTHOUGH BLOCKBUSTER ENTERTAINMENT CORP DENIES IT WALL STREET ANALYSTS SAY THE PLANS OF THE NATION'S LARGEST HOMEVIDEO RENTAL CHAIN TO MERGE WITH CABLE OPERATOR AND PROGRAMMER VIACOM INC REPRESENT A CLEVER EXIT STRATEGY FROM WHAT MAY BE A DYING BUSINESS WHILE HOMEVIDEO RETAILERS AND EXHIBITORS SAY THE PREDICTIONS OF THEIR DEATH ARE PREMATURE THEY AREN'T SITTING IDLY BY LED BY BLOCKBUSTER RETAILERS ARE SCRAMBLING TO DIVERSIFY SO THEY ARE POSITIONED MORE LIKE ENTERTAINMENT STORES OFFERING CDROM MUSIC AND VIDEOGAME TITLES AS WELL AS VIDEOCASSETTES THEATER CHAINS ARE MAKING PLANS TO CLOSE DOWN THE SMALLSCREEN MULTIPLEXES THEY PUT UP IN THE 1970S REPLACING THEM WITH STATEOFTHEART THEATER COMPLEXES THEY HOPE WILL MAKE GOING OUT EVEN MORE SPECIAL THE HOMEVIDEO BUSINESS WILL BE A FORMIDABLE FORTRESS TO BUST ITS REVENUE TOTALED 132 BILLION LAST YEAR ACCORDING TO PAUL KAGAN ASSOCIATES INC A RESEARCH FIRM IN CARMEL CALIF MOREOVER MANY FILMS GET AS MUCH AS 45 OF THEIR TOTAL REVENUE FROM HOME VIDEO AS A RESULT STUDIO EXECUTIVES ARE IN A TRICKY POSITION THEY CAN'T TURN THEIR BACKS ON THE HUGE REVENUE COMING FROM VIDEO RETAILERS AND YET THEY ARE EAGER TO FIND OUT JUST HOW MUCH THEY CAN MAKE BY RELEASING MOVIES THROUGH AN ELECTRONIC DELIVERY SERVICE TODAY VIDEO STORES MUST TURN AWAY POTENTIAL RENTERS OF A HIT LIKE DEMOLITION MAN DURING ITS FIRST DAYS OR WEEKS IN THE STORE BECAUSE IT'S ECONOMICALLY FEASIBLE FOR THE RETAILER TO PURCHASE ONLY A LIMITED NUMBER OF COPIES BUT WITH VIDEOONDEMAND STUDIOS IN THEORY WILL BE ABLE TO OFFER AN INFINITE INVENTORY ANYONE WHO WILL PAY THE PRICE CAN WATCH A MOVIE FROM ITS FIRST DAY OF RELEASE NO ONE KNOWS FOR SURE HOW BIG THAT AUDIENCE WILL BE VIDEO RETAILERS SAY THE BIG PROBLEM WITH VIDEOONDEMAND IS THAT WHILE IT MAY BE GREAT FOR SELLING HIT MOVIES IT WILL DO LITTLE TO SELL FILMS THAT MISFIRE AT THE BOX OFFICE NOBODY WILL THINK TO ORDER UP CABIN BOY WHILE SITTING IN A RECLINER AT HOME BUT A CONSUMER SHOPPING AT BLOCKBUSTER FOR A STACK OF MOVIES FOR THE WEEKEND MIGHT PICK IT UP ALONG WITH SLEEPLESS IN SEATTLE AND CLIFFHANGER BECAUSE VIDEO STORES BUY COPIES OF THE BOMBS AS WELL AS THE HITS HOME VIDEO FOR YEARS HAS BEEN HOLLYWOOD'S FINANCIAL SAFETY NET THERE WILL PROBABLY BE A LOT OF TIPTOEING AROUND RATHER THAN JUMPING IN WITH BOTH FEET BECAUSE NO ONE WILL WANT TO KILL THE GOOSE THAT LAID THE GOLDEN EGG SAYS ERIC DOCTOROW PRESIDENT OF PARAMOUNT PICTURES' DOMESTIC HOMEVIDEO UNIT IN LOS ANGELES MR DOCTOROW IS IN THE HOLLYWOOD CAMP THAT SAYS VIDEO RETAILERS AND THE PROMISED ELECTRONIC DELIVERY SYSTEMS CAN COEXIST INSTEAD OF THINKING THAT THE PIE IS ONE SIZE AND WILL GET SMALLER AS MORE PEOPLE COME TO FEED AT IT I THINK YOU COULD ALSO BUILD A SCENARIO THAT THE PIE WILL EXPAND HE SAYS INDEED THAT'S WHAT HAPPENED WITH THEATERS AND THE RENTAL INDUSTRY WHICH HOLLYWOOD INITIALLY VIEWED AS A THREAT TO MOVIEGOING THE COST TO CONSUMERS MAY BE THE MOST CRITICAL WILD CARD IN SOME OF THE CURRENT VIDEOONDEMAND TESTS CUSTOMERS SIMPLY PUSH BUTTONS TO CALL UP MOVIES THEY WANT TO WATCH AND THEN GET A BILL IN THE MAIL AT THE END OF THE MONTH VIDEO RETAILERS SAY MANY CONSUMERS WON'T EMBRACE THAT YOU'D BE GIVING YOUR TEENAGE CHILDREN THE OPPORTUNITY TO WATCH WHATEVER THEY WANT ANY TIME OF DAY AND NIGHT AND RUN UP A BILL THAT YOU PROBABLY CAN'T AFFORD SAYS MS WIENER OF THE VIDEO DEALERS ASSOCIATION SOME VIDEOINDUSTRY OFFICIALS SAY ONE REASON FOR HOME VIDEO'S SUCCESS IS THAT PEOPLE DON'T REALIZE HOW MUCH THEY SPEND ON IT WHEN YOU GO TO A VIDEO STORE YOU PULL 3 OUT OF YOUR WALLET AND YOU'RE DONE YOU DON'T REALIZE IT BUT AT THE END OF THE MONTH YOU MAY HAVE SPENT 150 ONE INDUSTRY OFFICIAL SAYS WITH VIDEOONDEMAND YOU'RE GOING TO GET A BILL AND SOME PEOPLE ARE GOING TO FREAK OUT FROM THEIR FIRSTHAND DEALINGS WITH CUSTOMERS VIDEO RETAILERS SAY THEY KNOW MOST PEOPLE WILL WANT TO KEEP GOING TO STORES TO BROWSE BEFORE RENTING BRAD BURNSIDE OWNER OF THE SMALL VIDEO ADVENTURE CHAIN IN EVANSTON ILL SAYS A FEW OF HIS CUSTOMERS NOT LONG AGO EXPRESSED INTEREST IN HOME DELIVERY OF CASSETTES MR BURNSIDE PUT SOME STUDENTS AT NORTHWESTERN UNIVERSITY'S GRADUATE BUSINESS SCHOOL ON THE CASE TO FIND OUT HOW MUCH MORE PEOPLE WOULD BE WILLING TO PAY AMONG OTHER THINGS BUT THE STUDENTS FOUND THAT WHILE SOME CUSTOMERS SAID THEY LIKED THE CONCEPT THEY ALSO SAID THEY WOULD NEVER USE IT WHY THEY WOULDN'T KNOW WHAT TO RENT WITHOUT BEING IN THE STORE TO SEE WHAT'S AVAILABLE THE KEY TO COEXISTENCE MAY WELL BE IN THE SCHEDULING OF THE VARIOUS REVENUE WINDOWS THAT EVERY FILM GOES THROUGH AFTER THEIR RUN IN THEATERS FILMS TYPICALLY FOLLOW THIS SEQUENCE HOME VIDEO PAYPERVIEW PAYTV SERVICES LIKE HBO OR SHOWTIME THEN BASIC CABLE AND FINALLY FREE TV WHERE ELECTRONIC DELIVERY WILL FIT IN HAS YET TO BE DETERMINED BUT THE VIDEO INDUSTRY PROMISES A FIGHT IF IT IS SCHEDULED BEFORE THE HOMEVIDEO WINDOW STUDIOS ALREADY ARE EXPERIMENTING WITH THE DIFFERENT WINDOWS PARAMOUNT LATE LAST YEAR TRIED LENGTHENING THE AMOUNT OF TIME BETWEEN THE HOMEVIDEO AND PAYPERVIEW RELEASES FOR THREE BIG FILMS INCLUDING INDECENT PROPOSAL AND THE FIRM WITH THE LONGER HOMEVIDEO WINDOW IT FOUND VIDEO RETAILERS WERE WILLING TO BUY MORE CASSETTES OF EACH FILM PARAMOUNT REPORTED THAT IT HAD ESTIMATED IT WOULD SELL ABOUT 12 MILLION COMBINED COPIES OF THE THREE TITLES GENERATING 73 MILLION INSTEAD IT SOLD MORE THAN 15 MILLION UNITS FOR 92 MILLION THE ADDITIONAL 19 MILLION IN REVENUE DWARFED THE 3 MILLION PARAMOUNT EXPECTED TO GENERATE FROM PAYPERVIEW MARKETS FOR THE THREE FILMS COMBINED ONCE THE NEW AGE TAKES OFF IT COULD PROVE FAR MORE DAMAGING TO MOVIE THEATERS THAN TO HOME VIDEO LAST YEAR TELECOMMUNICATIONS INC THE NATION'S BIGGEST CABLE OPERATOR AND CAROLCO PICTURES INC ANNOUNCED A DEAL IN WHICH TCI PLANS TO SHOW FOUR EVENT MOVIES ON PAYPERVIEW BEFORE THE FILMS PLAY IN THEATERS EXHIBITORS PANICKED ABOUT THE IMPACT ON THEIR REVENUES CAROLCO DESPITE SERIOUS FINANCIAL TROUBLES IS THE MAKER OF HUGE BOXOFFICE HITS INCLUDING TERMINATOR 2 JUDGMENT DAY THOUGH THE MAJOR STUDIOS SAY THEY DON'T PLAN TO EXPERIMENT WITH PAYPERVIEW PREMIERES INDUSTRY EXECUTIVES ACKNOWLEDGE THAT THEY WILL CLOSELY MONITOR CAROLCO'S PLAN TCI HASN'T ANNOUNCED WHAT THE FIRST MOVIE WILL BE UNDER THE PACT OR WHEN IT MIGHT AIR BUT NUMBER CRUNCHERS IN HOLLYWOOD ALREADY ARE DREAMING OF HUGE REVENUES IF JUST TWO MILLION HOUSEHOLDS PAY 25 EACH FOR A NEW FILM THE INITIAL REVENUE COULD COVER THE FILM'S COST A PAYPERVIEW PREMIERE OF SAY A TERMINATOR 3 COULD MAKE BOXOFFICE REVENUE PALE IN COMPARISON THAT KIND OF MONEY MIGHT BE HARD FOR STUDIOS TO IGNORE THEATER OWNERS ALSO ARE CONCERNED ABOUT THE THREAT POSED BY COMPETITION FROM OTHER OUTOFHOME ENTERTAINMENT OPTIONS SUCH AS CONCERTS SPORTS BARS AND VIRTUALREALITY ARCADES COMBINED WITH THE HIGHTECH OPTIONS IN LIVING ROOMS CONSUMERS WILL HAVE HIGHERQUALITY ENTERTAINMENT ALTERNATIVES IN AND OUT OF THE HOME THAT HAS THEATERS SCRAMBLING TO UPGRADE SOME EXHIBITORS SAY THE BUYING AND CONSTRUCTION BINGE THEY WENT ON IN THE 1970S IS NOW PROVING A COSTLY MISTAKE MOST OF THE THEATERS BUILT THEN WERE TINY TWO FOUR AND SIXSCREEN MULTIPLEXES THAT MOVIEGOERS NOW FIND UNACCEPTABLE BECAUSE THEY ARE TOO SMALL AND RUN DOWN COMPLEXES WITH 24 OR MORE SCREENS ARE POPPING UP AND ARE CREDITED WITH HELPING TO DRAW SOCALLED INFREQUENT MOVIEGOERS BACK TO THEATERS IN THE PAST YEAR IN BIG CITIES MANY TICKET BUYERS NOW THINK THE MOVIE THEATER IS AS IMPORTANT AS THE MOVIE ITSELF THEATER CHAINS SAY THE COUNTRY IS OVERSCREENED BUT ADD THAT 50 OR MORE OF THE THEATERS IN THE NATION ARE DILAPIDATED AND SHOULD BE REPLACED WITH MODERN COMPLEXES OCCUPYING MUCH MORE SPACE AMC ENTERTAINMENT INC THE CREATOR OF THE MULTIPLEX HAS MORE THAN 1620 SCREENS IN 240 THEATER COMPLEXES IT PLANS TO HAVE 3000 SCREENS IN PERHAPS 150 COMPLEXES BY THE END OF THE DECADE SOME MULTIPLEXES IN FORMER DEPARTMENTSTORE MALL SPACE COULD HAVE AS MANY AS 30 SCREENS AMC BASED IN KANSAS CITY MO HOPES TO INCREASE ATTENDANCE PER SCREEN AT THOSE MUTLIPLEXES THE CHAIN NOW BRINGS IN ABOUT 66000 PEOPLE PER SCREEN ANNUALLY BUT PHILIP SINGLETON AMC'S SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER SAYS HE WANTS THEATERS WITH 15 TO 20 SCREENS TO HAVE ATTENDANCE OF 80000 TO 100000 PER SCREEN ANNUALLY THE NEW COMPLEXES WILL HAVE MORE STEEPLY RISERED AUDITORIUMS HIGHBACK SEATS AND BIG SCREENS IN EVERY THEATER WHEN YOU LEAVE YOUR HOUSE WE'RE GOING TO OFFER AN EXPERIENCE SO DELUXE THAT THE PRICE OF ADMISSION IS WORTH IT JUST TO VISIT THE FACILITY SAYS BARRIE LOEKS CHAIRMAN OF LOEWS THEATRES IN NEW YORK THAT MAY BE A LITTLE BIT OF A STRETCH BUT YOU GET A LITTLE OF THAT FEELING WHEN YOU GO TO OLD MOVIE PALACES SHE ADDS WE CAN'T COMPETE SUCCESSFULLY WITH THE INHOME MARKET IF IT'S A HASSLE GOING OUT LOEWS A UNIT OF SONY CORP IS ALSO EMBARKING ON A CAPITALINTENSIVE THEATERIMPROVEMENT PROGRAM ONE LOEWS COMPLEX UNDER CONSTRUCTION IN NEW YORK CITY WILL BE THE FIRST MULTIPLEX TO INCLUDE A GIANTSCREEN IMAX THEATER LIKE THE ONES AT SCIENCE CENTERS AND MUSEUMS THERE WILL BE NINE TRADITIONAL AUDITORIUMS INCLUDING A MAIN PREMIERE HOUSE THEATER WITH A FANCY CEILING FULL BALCONY AND SHOWY CURTAIN LOEWS ALSO PLANS A SIMILAR COMPLEX IN SAN FRANCISCO WHICH WILL MARK THE FIRST THEATER THE CHAIN HAS OPENED WEST OF TEXAS BIGGER MULTIPLEXES HOWEVER PRESENT A HOST OF SERVICE CHALLENGES FOR CHAINS EXHIBITORS KNOW CONSUMERS WON'T PUT UP WITH WAITING IN LONG LINES AT A 30SCREEN THEATER AMC IS EXPLORING THE POSSIBILITY OF A SINGLE TICKET THAT OFFERS ADMISSION TO THE MOVIE ALONG WITH POPCORN SODA AND OTHER CONCESSIONS BUT FANCY THEATERS AND BETTER SERVICE CAN'T CARRY TOO MUCH OF AN ADDITIONAL TICKET PRICE EXHIBITORS REALIZE ONE OF THE THEORIES IS THEY'LL COME NO MATTER WHAT YOU CHARGE AMC'S MR SINGLETON SAYS THAT MAY BE TRUE IF YOU HAVE A JURASSIC PARK' EVERY FRIDAY BUT WHEN YOU'VE GOT A GERONIMO' I'M NOT SURE A HANDFUL OF CHAINS PLAN TO EXPERIMENT WITH INTERACTIVE THEATERS THOUGH MANY EXECUTIVES ALREADY ARE PREDICTING THEY WILL BE A PASSING FAD ONE COMPANY IN THE BUSINESS NEW YORKBASED INTERFILM INC HAS SIGNED UP CHAINS TO PAY 85000 TO INSTALL PISTOL GRIPS THAT MOVIEGOERS USE TO VOTE ON THE PLOT AT VARIOUS POINTS IN A FILM ITS SECOND FILM RIDE FOR YOUR LIFE WILL RUN ON ABOUT 50 SCREENS THIS SPRING STARRING TV'S BATMAN ADAM WEST AND BETTY BUCKLEY IT IS ABOUT A RACE BETWEEN TWO BICYCLE MESSENGERS IN NEW YORK CITY THOUGH THE FILM LASTS ONLY 20 MINUTES IN ANY ONE VERSION IT COMES WITH TWO HOURS OF MATERIAL SCENES ARE PULLED OUT AND SHOWN BASED ON THE VOTES OF THE AUDIENCE WILLIAM FRANZBLAU INTERFILM'S CHIEF OPERATING OFFICER SAYS THE COMPANY PLANS TO RELEASE ONE FILM A QUARTER SPENDING NO MORE THAN 1 MILLION APIECE ON PRODUCTION A TEST MORE THAN A YEAR AGO SHOWED THAT SOME DIEHARD AUDIENCE MEMBERS WILL STAY AND WATCH THE FILM THREE OR FOUR TIMES TO PLAY OUT THE MOVIE'S VARIOUS PLOTS NOT ONLY IS THE MOVIEGOER INTERACTING WITH THE SCREEN BUT THERE'S ALSO AN INTERACTION AMONG THE PATRONS AS THEY LOBBY EACH OTHER TO VOTE A PARTICULAR WAY MR FRANZBLAU SAYS AN INTERFILM THEATER ISN'T A QUIET THEATER MR KING IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9403210037 940321 BIG STOCKS FAIL TO SHARE IN FEAST LESSER ISSUES ENJOY SMALL STOCK FOCUS SOLID EARNINGS TAKEOVER FEVER SPARK LITTLE GUYS' BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL BIG STOCKS MAY HAVE LOST THEIR WAY BUT SMALL ISSUES ARE SHOOTING TO NEW RECORDS PROPELLED BY SOLID EARNINGS AND A FLASH OF TAKEOVER FEVER THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS ON THE MAJOR EXCHANGES AND THE NASDAQ STOCK MARKET CLIMBED TO CONSECUTIVE NEW HIGHS WEDNESDAY THURSDAY AND FRIDAY YEARTODATE THE INDEX IS UP 48 TO 27108 COMPARED WITH A 38 GAIN FOR THE DOW JONES INDUSTRIAL AVERAGE THE DOW IS OFF 21 HOWEVER FROM ITS JAN 31 PEAK WHILE THE RUSSELL IS UP 13 FROM ITS FEB 2 EARLIER HIGH OF 26762 THE NASDAQ COMPOSITE INDEX WHICH COMPROMISES MOSTLY SMALL STOCKS ALSO FINISHED THE WEEK AT A RECORD HOW LONG CAN THIS LAST THE MOST BULLISH ANALYSTS ARGUE THAT SMALL STOCKS CAN SCALE NEW HEIGHTS AS LONG AS EARNINGS CONTINUE TO MEET OR EXCEED EXPECTATIONS AND THE LIKELIHOOD OF THAT HAPPENING IS HIGH BARRING ANY AGGRESSIVE EFFORTS BY THE FEDERAL RESERVE BOARD TO SLOW THE ECONOMY ANALYSTS AND TRADERS SAID THEY WILL BE WATCHING FOR A POSSIBLE BOOST IN SHORTTERM INTEREST RATES FOLLOWING THE MEETING OF THE FED'S POLICYMAKING ARM THAT BEGINS TOMORROW SMALL STOCKS HAVE ESCAPED MUCH OF THE DAMAGE THAT RISING INTEREST RATES INFLICTED ON THE BROADER MARKET FOLLOWING THE FED'S FEB 4 BOOST IN SHORTTERM INTEREST RATES SAYS PAUL GREENWOOD SENIOR RESEARCH ANALYST AT FRANK RUSSELL CO IN TACOMA WASH THE COMPANY COMPILES THE RUSSELL 2000 AND OTHER INDEXES ACCORDING TO ZACKS INVESTMENT RESEARCH 56 OF COMPANIES WITH A MARKET CAPITALIZATION OF 650 MILLION OR LESS MET OR BEAT EXPECTATIONS FOR THEIR LAST REPORTED FISCAL QUARTERS ENDING IN DECEMBER JANUARY OR FEBRUARY WHILE THE FIGURE IS A FEW PERCENTAGE POINTS BELOW THE TREND SEEN IN RECENT QUARTERS IT STILL SHOWS THAT EARNINGS ARE ON TRACK SAYS BENJAMIN ZACKS EXECUTIVE VICE PRESIDENT AT ZACKS IN CHICAGO THOSE COMPANIES BEATING ESTIMATES SOME 45 OF ALL SMALLCAP COMPANIES SURVEYED DID SO BY AN AVERAGE 1753 IN THEIR LAST REPORTED QUARTER MR ZACKS SAYS AND HE THINKS THEY CAN KEEP UP THE PACE FOR THE MOST PART CERTAINLY THEY HAVE FOOLED A LOT OF ANALYSTS WHO FOR THE PAST FOUR QUARTERS HAVE LOWERED EXPECTATIONS ONLY TO BE SURPRISED BY THE STRONG OVERALL EARNINGS GAINS THAT SMALL STOCKS HAVE POSTED ON THE BASIS OF EARNINGS PERFORMANCE MR ZACKS THINKS SMALL STOCKS WILL CONTINUE TO OUTPERFORM IN WHAT HAS BECOME A SOLIDLY EARNINGSDRIVEN MARKET HE NOTES FOR EXAMPLE THAT ANALYSTS NOW PROJECT 1994 EARNINGS FOR SMALLCAP COMPANIES TO GROW 19 YEAROVERYEAR ALBEIT DOWN FROM PROJECTIONS OF 22 THREE MONTHS AGO THAT COMPARES WITH GROWTH ESTIMATES OF 165 FOR THE STANDARD & POOR'S 500 STOCK INDEX A MUCH BROADER GAUGE OF STOCK PERFORMANCE MR ZACKS SEES OTHER FACTORS BOLSTERING SMALLCOMPANY SHARES THIS YEAR THEY'RE BENEFITING FROM CORPORATE RESTRUCTURING AND THE PICKUP IN THE OVERALL ECONOMY MORE SPECIFICALLY THEY'RE NOT AS EXPOSED TO FOREIGN OPERATIONS AS LARGECAP COMPANIES WHICH HAVE BEEN HURT BY A STRONGER DOLLAR AND BY SLACK DEMAND IN EUROPE OTHER ANALYSTS HAVE SUGGESTED THAT FUNDS PREVIOUSLY EARMARKED FOR INVESTMENT IN HOT NEW EMERGING MARKETS ABROAD MAY FIND A HOME IN SMALLCAP DOMESTIC EQUITIES NOW THAT THOSE OVERSEAS MARKETS ARE FLOUNDERING FINALLY THERE HAS BEEN A FLURRY OF MERGER NEWS IN THE COMMUNICATIONS AND BROADER TECHNOLOGY SECTORS SUCH AS TUESDAY'S ANNOUNCEMENT THAT DESKTOP PUBLISHER ADOBE SYSTEMS INC WILL BUY COMPETITOR ALDUS CORP IN A 5158 MILLION STOCK SWAP THE TECHNOLOGY SECTOR HAS DEFINITELY BEEN LEADING THE WAY WITH THE GROUP APPROACHING DOUBLEDIGIT GAINS FOR THE YEAR TO DATE SAYS MR GREENWOOD THE RUSSELL ANALYST AMONG THE TOP PERFORMERS WITHIN THE RUSSELL 2000 WHERE THE AVERAGE MARKET CAP STANDS AROUND 420 MILLION ARE BREED TECHNOLOGIES INC A MAKER OF AUTO AIRBAG CRASH SENSORS WESTERN DIGITAL CORP A COMPUTERCOMPONENT MANUFACTURER AND CENTEX TELEMANAGEMENT INC A PROVIDER OF TELECOMMUNICATIONS MANAGEMENT SERVICES ALL THREE ISSUES ARE UP MORE THAN 100 THIS YEAR AS FOR TOPPERFORMING SECTORS SEMICONDUCTOR STOCKS ARE THE STANDOUTS BUOYED BY STRONG ORDER FLOWS MR GREENWOOD POINTS OUT THAT THE STRONGER RELATIVE PERFORMANCE OF SMALL CAPS MAY REFLECT IN PART THE SUBSTANTIAL UNDERWEIGHTING OF UTILITIES IN THE RUSSELL 2000 INDEX UTILITIES TEND TO BE AMONG THE MOST INTERESTRATESENSITIVE SECTORS LARGELY BECAUSE OF THEIR SUBSTANTIAL FINANCIAL LEVERAGE IN THE S&P 500 UTILITIES HAVE 26 TIMES THE WEIGHTING THEY DO IN THE RUSSELL 2000 MR GREENWOOD EXPLAINS VETERAN SMALLSTOCK INVESTORS SAY THEY LIKE WHAT THEY'VE BEEN SEEING OVER THE PAST FEW WEEKS SMALL STOCKS RETAINING THEIR LEADERSHIP ROLE BUT THEY CAUTION IT'S STILL WISE TO LIGHTEN UP ON SOME OF THE HOT ISSUES I'M TAKING PROFITS AND TRYING TO BUY STOCKS WITH LOWER P/E'S SAYS GIL KNIGHT MANAGING DIRECTOR OF ASB CAPITAL MANAGEMENT INC IN WASHINGTON DC BEFORE MR KNIGHT BEGINS CHASING HIGHP/E GROWTH STOCKS HE'S GOING TO WAIT FOR A SHAKEOUT IN THE MARKET FOR INITIAL PUBLIC OFFERINGS THE PIPELINE OF LOWQUALITY IPOS COMING TO MARKET IS ABSORBING LARGE AMOUNTS OF THE FRESH MONEY BEING PUT INTO EQUITIES HE SAYS FRESH MONEY IS WHAT'S NEEDED TO POWER THE MARKET HIGHER I WANT TO SEE SOME OF THESE IPOS PULLED BEFORE GETTING STRONGLY BULLISH ABOUT THE SMALLCAP MARKET HE SAYS YEAR TO DATE ONLY A FEW ISSUES HAVE BEEN PULLED MOST OF THEM PROPOSED FINANCIAL OFFERINGS OR THOSE OF REAL ESTATE INVESTMENT TRUSTS REITS ACCORDING TO SECURITIES DATA CO AMONG THE REITS THAT WERE POSTPONED SEVERAL HAVE SINCE REFILED AND BEEN SOLD THE RUSSELL 2000 WAS UP 129 OR 048 TO 27108 FOR A THIRD CONSECUTIVE RECORD CLOSE THE NASDAQ COMPOSITE INDEX ROSE 008 TO 80393 FROM THURSDAY'S RECORD EQUALLY IMPRESSIVE WAS THE NASDAQ'S LATEDAY REBOUND FROM ITS SESSION LOW OF 79914 IMMUNOMEDICS WHICH MAKES DIAGNOSTIC MEDICAL PRODUCTS WAS UP 1/4 OR 5 AT 5 1/4 AFTER THE COMPANY SAID A RECENT STUDY SHOWED ONE OF ITS PRODUCTS COULD ACCURATELY DISCLOSE THE PRESENCE OR ABSENCE OF TUMORS IN 93 OF TEST SUBJECTS THE COMPANY SAID THE RESULTS OF THE STUDY WERE REPORTED IN THIS MONTH'S ISSUE OF THE JOURNAL OF CLINICAL ONCOLOGY MONKAUSTIN A TOBACCO COMPANY ROSE 2 5/8 OR 17 TO 18 1/2 AFTER IT SAID IT AGREED IN PRINCIPLE TO BUY RJ REYNOLDS TOBACCO'S US TOBACCO NEEDS FROM THE AUCTION MARKET BEGINNING IN 1994 THE ARRANGEMENT PROVIDES THAT NEW YORK STOCK EXCHANGETRADED MONKAUSTIN WILL PURCHASE THE US TOBACCO AT AUCTION AND THEN SELL IT TO RJ REYNOLDS A UNIT OF RJR NABISCO MONKAUSTIN SAID IT BELIEVES THE AGREEMENT WILL ADD 200 MILLION TO 300 MILLION ANNUALLY TO ITS NET REVENUE BEGINNING IN THE FISCAL YEAR ENDING JUNE 30 1995 CHICO'S FAS A CHAIN OF RETAIL CLOTHING STORES SURGED 1 1/2 OR 15 TO 11 3/4 AFTER THE COMPANY SAID ITS FIRSTQUARTER NET INCOME WILL MEET OR EXCEED ITS YEARAGO PROFORMA EARNINGS OF 14 CENTS A SHARE ADVANCED MAGNETICS A BIOPHARMACEUTICALS COMPANY ROSE 7/8 OR 61 TO 15 1/4 FOLLOWING A POSITIVE WRITEUP IN THE CURRENT ISSUE OF BUSINESS WEEK IN THE ARTICLE A MONEY MANAGER SAID THE AMERICAN STOCK EXCHANGETRADED ISSUE IS WORTH A PRICE OF 25 WHILE ANALYSTS SAID THEY SEE SHARP REVENUE INCREASES OVER THE NEXT FEW YEARS WITH EARNINGS GROWTH BEGINNING IN 1996 BY 1997 THE COMPANY IS SEEN EARNING 2 A SHARE ON SALES OF 40 MILLION RAYTECH WAS UP 7/8 OR 28 TO 4 AFTER THE ENGINEERING COMPANY THAT IS TRADED ON THE BIG BOARD REPORTED FOURTHQUARTER EARNINGS OF 57 CENTS A SHARE COMPARED WITH SEVEN CENTS A YEAR EARLIER GOTTSCHALKS A DEPARTMENT STORE CHAIN ROSE 5/8 OR 58 TO 11 3/8 AFTER THE BIG BOARDTRADED COMPANY REPORTED FOURTHQUARTER EARNINGS OF 49 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 14 CENTS BALLY GAMING INTERNATIONAL POSTED A GAIN OF 5/8 OR 46 TO 14 1/8 AFTER THE LAS VEGAS GAMBLING MACHINE COMPANY SIGNED A CONTRACT WITH HARRAH'S RIVERBOAT CASINO IN SHREVEPORT LA TO SUPPLY A COMPUTERIZED DATA SYSTEM THAT SUPPLIES PLAYER TRACKING CASH MONITORING HARDWARE AND SOFTWARE SUPPORT ACCOUNTING AND SECURITY FUNCTIONS NEW IMAGE INDUSTRIES FELL 3/4 OR 63 TO 11 1/4 AFTER IT SAID BAD WEATHER AND THE CALIFORNIA EARTHQUAKE WOULD HAVE A NEGATIVE IMPACT ON THIRDQUARTER SALES AND THAT THIRDQUARTER EARNINGS WILL FALL SIGNIFICANTLY BELOW EXPECTATIONS THE VIDEO AND COMPUTER IMAGING COMPANY EXPECTS FOURTHQUARTER SALES AND EARNINGS TO BE ON TARGET MOMENTUM CORP WAS DOWN 3 3/4 OR 29 AT 9 1/4 ON NEWS THE COMPANY SIGNED AN AGREEMENT TO MERGE WITH PHILLIPS & JACOBS IN A STOCK SWAP THAT WILL CREATE A NEW COMPANY BOTH MOMENTUM AND PHILLIPS & JACOBS WILL OPERATE AS SUBSIDIARIES OR DIVISIONS OF THE MERGED COMPANY WHICH WILL HAVE REVENUE OF MORE THAN 350 MILLION IN 1994 ACCORDING TO MOMENTUM COMPANIA DE TELEFONOS DE CHILE ADRS DROPPED 12 5/8 OR 12 TO 93 AS THE COMPANY REMAINS DEADLOCKED WITH REGULATORS ON SEVERAL RATE CASE ISSUES IN A CONFERENCE CALL WITH ANALYSTS LAST WEEK CLAUDIO GARCIA CHIEF FINANCIAL OFFICER SAID THAT BECAUSE A DECREE DRAFTED BY GOVERNMENT REGULATORS COVERING RATES THE TELECOMMUNICATIONS UTILITY WILL CHARGE FROM 1994 TO 1998 ISN'T A PUBLIC DOCUMENT THE COMPANY HASN'T ISSUED ANY DETAILS TO INVESTORS SEE RELATED ARTICLE ABREAST OF THE MARKET LACK OF A SURGE AMID GOOD SIGNS PUZZLES INVESTORS WSJ MARCH 21 1994 9403210036 940321 GSA'S HEAD TO REPAY US FOR EXPENSES BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ROGER JOHNSON THE HEAD OF THE GENERAL SERVICES ADMINISTRATION INTENDS TO REPAY THE FEDERAL GOVERNMENT 106255 IN EXPENSES FOLLOWING THE FIRST OF TWO REVIEWS OF HIS TRAVEL RECORDS MR JOHNSON THE FORMER CHIEF EXECUTIVE OF WESTERN DIGITAL CORP AN IRVINE CALIFBASED DISKDRIVE MAKER ASKED FOR THE REVIEWS AFTER THE WALL STREET JOURNAL OBTAINED HIS TRAVEL VOUCHERS THROUGH A FREEDOM OF INFORMATION ACT REQUEST THE VOUCHERS SHOWED THAT MR JOHNSON VISITED HIS RESIDENCE IN CALIFORNIA WHERE HIS WIFE WAS LIVING DURING FIVE OF THE NINE OFFICIAL TRIPS HE TOOK IN HIS FIRST SEVEN MONTHS ON THE JOB A SECOND PROBE BY HIS AGENCY'S INSPECTOR GENERAL IS CONTINUING IN THE MEANTIME AIDES SAID MR JOHNSON INTENDS TO REPAY 589 FOR MEALS AND INCIDENTAL EXPENSES FOR FOUR TRIPS THAT INVOLVED STAYS IN HIS HOME HE PLANS TO REPAY ANOTHER 47355 AS THE RESULT OF AN ERROR THAT REIMBURSED HIM FOR ONE OF HIS TRIPS AT THE COMMERCIAL RATE RATHER THAN THE LOWER GOVERNMENTEMPLOYEE RATE THE REVIEW CONDUCTED BY DENNIS FISCHER THE AGENCY'S CHIEF FINANCIAL OFFICER ALSO DISCOVERED THAT MR JOHNSON WAS UNDERREIMBURSED FOR AN AIR FARE BY 353 AND WILL BE PAID BY THE GOVERNMENT FOR THAT FLIGHT MR JOHNSON ALSO PERSONALLY PAID FOR SOME OF HIS FLIGHTS BACK TO CALIFORNIA INCLUDING ONE DURING THE RECENT WILDFIRES MR FISCHER CONCLUDED THAT MR JOHNSON'S ACTIONS WERE CONSISTENT WITH FEDERAL TRAVEL REGULATIONS AS MR JOHNSON ASSERTED THEY WERE STILL MR JOHNSON SAID HE WANTED TO REPAY THE GOVERNMENT FOR SOME OF THE MEAL AND INCIDENTAL EXPENSE PAYMENTS HE ACCEPTED WHILE HE WAS STAYING AT HIS HOME IN ORDER TO AVOID THE APPEARANCE OF CONFUSING PERSONAL WITH GOVERNMENT TRAVEL THE 59YEAROLD MR JOHNSON HAS SPENT A LOT OF HIS TIME IN WASHINGTON DEVELOPING PLANS FOR AND PROMOTING PRESIDENT CLINTON'S EFFORT TO MAKE THE FEDERAL GOVERNMENT MORE EFFICIENT HE ALSO IS THE ADMINISTRATION'S HIGHESTRANKING REPUBLICAN AND ITS ONLY FORMER CHIEF EXECUTIVE OF A MAJOR INDUSTRIAL US CORPORATION THE GSA A 20000PERSON AGENCY OVERSEES THE GOVERNMENT'S REAL ESTATE AND DOES MUCH OF ITS PURCHASING 9403210035 940321 MOMENTUM MERGER WITH PHILLIPS & JACOBS IS PLANNED BY FIRMS PENNSAUKEN NJ PHILLIPS & JACOBS INC AND MOMENTUM CORP ANNOUNCED AN AGREEMENT IN PRINCIPLE TO MERGE COMBINING TWO DISTRIBUTORS OF EQUIPMENT AND SUPPLIES FOR THE PRINTING INDUSTRY WITH PROJECTED 1994 SALES OF ABOUT 360 MILLION THE TRANSACTION WILL GIVE PHILLIPS & JACOBS STOCKHOLDERS ONE SHARE IN THE COMBINED COMPANY FOR EACH OF THEIR SHARES HOLDERS OF MOMENTUM BELLVUE WASH WILL GET 071 SHARES OF STOCK IN THE NEW ENTITY FOR EACH OF THEIR SHARES THERE ARE ABOUT 41 MILLION PHILLIPS & JACOBS SHARES OUTSTANDING AND ABOUT 34 MILLION MOMENTUM SHARES KEN SALMON AN ANALYST AT CL KING & ASSOCIATES IN ALBANY NY SPECULATED THAT MOMENTUM STOCKHOLDERS WERE DISAPPOINTED BY THE EXCHANGE RATE IN THE MERGER AFTER THE CLOSE OF TRADING HOWEVER MOMENTUM REPORTED A NET LOSS OF 664000 OR 19 CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH NET INCOME OF 327000 OR NINE CENTS A SHARE IN THE YEAREARLIER PERIOD SALES DECLINED SLIGHTLY TO 283 MILLION FROM 285 MILLION WHICH THE COMPANY ATTRIBUTED LARGELY TO THE WEAK ECONOMY ON THE WEST COAST JAMES MULLAN PHILLIPS & JACOBS'S CHIEF EXECUTIVE OFFICER SAID THE DEAL WILL ALLOW THE TWO DISTRIBUTORS TO HAVE NATIONWIDE COVERAGE HE WILL KEEP THAT TITLE IN THE NEW COMPANY JOHN GODDARD MOMENTUM'S CHIEF EXECUTIVE OFFICER WILL BECOME EXECUTIVE VICE PRESIDENT MR MULLAN SAID THE TWO COMPANIES WILL OPERATE AS SUBSIDIARIES OR DIVISIONS OF THE NEW PARENT COMPANY