WILMINGTON DEL SONEM PARTNERS LTD A COLORADO SHAREHOLDER OF FIBREBOARD CORP FILED SUIT IN DELAWARE COURT OF CHANCERY SEEKING TO ENJOIN THE COMPANY FROM EXERCISING AN ANTITAKEOVER POISON PILL PROVISION EXECUTIVES OF THE COMPANY WHICH MAKES BUILDING PRODUCTS AND OWNS SKI RESORTS COULDN'T BE REACHED FOR COMMENT ON THE SUIT FIBREBOARD WALNUT CREEK CALIF LAST WEEK ANNOUNCED THAT IT REJECTED AN UNSOLICITED OFFER BY INVESTOR CARL POHLAD TO PURCHASE THE COMPANY FOR 4250 A SHARE 9403210033 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT WHERE THE MONEY IS THE PLAYERS BIG MONEY BIG IDEAS BIG EGOS HERE ARE THE PEOPLE AND COMPANIES TO WATCH BY MARK ROBICHAUX CORPORATE COMMUNICATIONS GIANTS AND MEDIA MOGULS ARE BETTING BIG MONEY THAT THEIR MULTIMEDIA ALLIANCES JOINT VENTURES AND HIGHTECH PROJECTS WILL STEER THEM TO BIG PROFITS THERE'S PLENTY OF HYPE IN THE HEADLINES BUT THEY ARE PUTTING BIG CAPITAL AND BIG EGOS ON THE LINE THE CONVERGENCE OF THE CABLE TELEPHONE AND ENTERTAINMENT INDUSTRIES APPEARS INEVITABLE EVEN AFTER THE COLLAPSE LAST MONTH OF THE PLANNED MERGER BETWEEN BELL ATLANTIC CORP AND TELECOMMUNICATIONS INC WHAT FOLLOWS IS A GUIDE TO SOME OF THE LEADING PLAYERS BIG AND SMALL WHO WILL FIGURE IN THE MULTIMEDIA FUTURE MORE THAN ANY COMPANY TCI HEADED BY JOHN MALONE HAS LED THE CABLE INDUSTRY IN EXPANDING CHANNEL CAPACITY OFFERING MORE PROGRAM CHOICES AND PUSHING THE DEVELOPMENT OF INTERACTIVE SERVICES THE DENVERBASED COMPANY IS THE NATION'S LARGEST CABLE OPERATOR WITH MORE THAN 10 MILLION SUBSCRIBERS SO IT'S ALSO THE BIGGEST CUSTOMER TO PROGRAMMERS SOFTWARE COMPANIES AND EQUIPMENT SUPPLIERS THROUGH ITS LIBERTY MEDIA CORP SUBSIDIARY IT OWNS INTERESTS IN A MENU OF CABLE CHANNELS INCLUDING TURNER BROADCASTING SYSTEM INC'S CABLE NEWS NETWORK AND TNT CHANNELS THE FAMILY CHANNEL COURT TV AND A CHAIN OF REGIONAL SPORTS NETWORKS BY YEAR'S END TCI WILL BEGIN INSTALLING THE FIRST GENERATION OF HIGHTECH DIGITALCOMPRESSION SMART BOXES OR SETTOP CONVERTERS AND THE INDUSTRY IS EXPECTED TO FOLLOW ITS LEAD AND THE COMPANY SAYS IT WILL CONTINUE WITH ITS PLAN TO BUILD FULLSERVICE NETWORKS OFFERING SUCH SERVICES AS VIDEOONDEMAND INTERACTIVE GAMES AND HOME SHOPPING THE ANNOUNCEMENT LAST FALL OF THE TCIBELL ATLANTIC AGREEMENT SET OFF A SLEW OF SIMILAR MERGERS AND ALLIANCES TCI BLAMED THE DEAL'S DEMISE ON THE FEDERAL COMMUNICATIONS COMMISSION'S LATEST ROUND OF CABLE RATE CUTS WHICH IT CALLED UNWARRANTED THE INDUSTRY CLAIMS THE NEW RULES WILL CRIMP CASH FLOW BUT MANY ANALYSTS ARE BULLISH ON CABLE STOCKS FOR THE LONG TERM THE DEAL'S COLLAPSE ELIMINATED SOME OF THE URGENCY TO FIND PARTNERS BUT EXECUTIVES SAY THE FORCES PROPELLING SUCH LINKS INCLUDING THE EXPLOSION OF DIGITAL TECHNOLOGY AND THE EASING OF REGULATIONS HAVEN'T CHANGED WITH MR MALONE NOW FREE TO PURSUE NEW VENTURES EVEN WITH BELL ATLANTIC TCI IS WIDELY EXPECTED TO HOOK UP WITH A RANGE OF PARTNERS FROM BIG MOVIE STUDIOS TO TINY SOFTWARE DEVELOPERS WE WANT TO SPARK THE CREATIVE FIRES AND EXPLORE THE FEATURES NEEDED FOR NEW NETWORKS WE'RE BUILDING SAYS ROBERT THOMSON A TCI SENIOR VICE PRESIDENT WE WANT TO SEE A THOUSAND FLOWERS BLOOMING AFTER THE BREAKUP OF ITS MERGER WITH TCI BELL ATLANTIC IS PROWLING FOR OTHER DEALS THAT WILL ACCELERATE ITS PUSH TO DELIVER INTERACTIVE SERVICES EVEN WITHOUT TCI WE THINK WE HAVE A NUMBER OF ARROWS LEFT IN OUR QUIVER CHIEF EXECUTIVE RAYMOND SMITH TOLD ANALYSTS RECENTLY THE PHILADELPHIABASED COMPANY NOW IS LOOKING FOR MOREFOCUSED PARTNERSHIPS WITH CABLE OPERATORS BELL ATLANTIC IS REGARDED ON WALL STREET AS THE MOST AGGRESSIVE OF THE REGIONAL TELEPHONE COMPANIES IN ITS DRIVE TO DELIVER MULTIMEDIA SERVICES EVEN BEFORE IT AGREED TO MERGE WITH TCI BELL ATLANTIC HAD WON A COURT RULING ALLOWING IT TO SEND VIDEO PROGRAMMING OVER ITS LOCAL PHONE LINES IT REMAINS THE ONLY ONE OF THE SEVEN REGIONAL BELL COMPANIES THAT CAN LEGALLY DO SO AND IT IS ALREADY VENTURING INTO VIDEO SERVICES WITH A TRIAL IN NORTHERN VIRGINIA MR SMITH PREDICTS VIDEO PROGRAMMING WILL GENERATE SIGNIFICANT REVENUE AS EARLY AS NEXT YEAR THE COMPANY IS DEVELOPING A SOFTWARE SYSTEM CALLED STARGAZER WHICH WILL HELP SUBSCRIBERS NAVIGATE THROUGH HUNDREDS OF CABLE CHANNELS AND FUNCTIONS BELL ATLANTIC ALSO ANNOUNCED AN EARLY AND AGGRESSIVE PLAN TO BUILD A SECTION OF INFORMATION HIGHWAY STARTING A FIVEYEAR 15 BILLION EFFORT THE COMPANY PLANS TO WIRE 12 MILLION HOMES FOR INTERACTIVE SERVICES BY THE END OF NEXT YEAR AND ADD AN AVERAGE OF 15 MILLION MORE HOMES ANNUALLY THEREAFTER THE COMPANY HAS AGREED TO WORK WITH NEWSPAPER PUBLISHER KNIGHTRIDDER INC TO DEVELOP NEWS ENTERTAINMENT AND ADVERTISING FOR DELIVERY INTO THE HOME WITH CASH FLOW OF 5 BILLION A YEAR BELL ATLANTIC HAS THE WHEREWITHAL TO MAKE MASSIVE EQUIPMENT SOFTWARE AND PROGRAMMING PURCHASES BUT THE COLLAPSE OF THE TCI DEAL RAISES THE QUESTION OF HOW MUCH TELEPHONE COMPANIES GIVEN THEIR DEVOTION TO SHAREHOLDER DIVIDENDS ARE WILLING TO PAY FOR CABLE PROPERTIES UNLIKE PHONE COMPANIES CABLE COMPANIES ARE MEASURED MORE BY CASH FLOW THAN EARNINGS SURROUNDED BY THE CHIEF EXECUTIVES OF MEDIA AND TELEPHONE COMPANIES AT A PANEL EARLIER THIS YEAR WALT DISNEY CO CHAIRMAN MICHAEL EISNER SAID I FEEL LIKE AN ENGLISH MAJOR IN AN ORGANICCHEMISTRY COURSE DISNEY SO FAR HAS BEEN THE WALLFLOWER AT THE MULTIMEDIA BALL AND SOMETIMES EVEN COMES ON LIKE A PARTY POOPER I DON'T GET IT MR EISNER SAID AT THE PANEL HE COMPARED THE MUCHDISCUSSED 500CHANNEL UNIVERSE TO RADIO I DON'T LIKE RADIO HE SAID IT'S TOO MUCH IT'S TOO CONFUSING IT'S NOT COMFORTABLE I CAN'T REMEMBER MORE THAN FOUR STATIONS AND HE SAID CATEGORICALLY WE ARE NOT INVESTING IN THE INFORMATION HIGHWAY I'M NOT SAYING IT IS THE CORRECT PATH I'M SAYING IT IS THE PATH FOR US THAT'S BECAUSE NO MATTER HOW THE TECHNOLOGY SHAKES OUT DISNEY IS CERTAIN TO HAVE A BIG PART IN THE MULTIMEDIA FUTURE THE BURBANK CALIF COMPANY HAS THE STRONGEST IDENTITY IN THE BUSINESS AND AN ABUNDANCE OF MOVIES FROM ITS PRODUCTION ARMS WALT DISNEY PICTURES MIRAMAX FILMS HOLLYWOOD PICTURES AND TOUCHSTONE PICTURES WHICH ARE EXPECTED TO PRODUCE ABOUT 60 NEW FILMS THIS YEAR DISNEY SAYS ITS BRAND NAME AND PRODUCTS FEATURE FILMS ANIMATED MOVIES AND TV SHOWS ARE IN SUCH DEMAND THAT THE COMPANY WILL BE ABLE TO CHARGE A FAIR PRICE FOR ITS WARES NO MATTER WHAT DISTRIBUTION SYSTEM DOMINATES IN THE FUTURE NEVERTHELESS MANY PEOPLE BELIEVE AND MR EISNER DOESN'T DENY THAT DISNEY MIGHT ALLY WITH A TELEPHONE OR CABLE COMPANY IF ONLY TO ENSURE THAT IT ISN'T HELD HOSTAGE BY MONOPOLISTS WHO CONTROL THE WIRES INTO PEOPLE'S HOMES ONE CANDIDATE ANALYSTS MENTION AMERICAN TELEPHONE & TELEGRAPH CO WHICH WOULD FEEL COMFORTABLE WITH DISNEY'S WHOLESOME IMAGE ANOTHER IS AMERITECH CORP MEANWHILE DISNEY HAS BEEN RESEARCHING AND DEVELOPING HIGHTECH ATTRACTIONS FOR ITS THEME PARKS AN EFFORT CLOAKED IN SECRECY AND THE COMPANY'S COMPUTERSOFTWARE UNIT HAS WORKED ON DEVELOPING SOFTWARE AND VIDEO GAMES USING DISNEY'S CHARACTERS THE UNIT PROVIDED HANDDRAWN ANIMATION FOR AN ALADDIN GAME DEVELOPED WITH SEGA ENTERPRISES LTD OF JAPAN AND VIRGIN INTERACTIVE ENTERTAINMENT A UNIT OF VIRGIN GROUP LTD OF BRITAIN THE GAME HAS BEEN AMONG SEGA'S BIGGEST HITS EVER SELLING MORE THAN ONE MILLION UNITS AND HAS BEEN PRAISED BY CRITICS PARTLY BECAUSE IT'S ONE OF FEW VIDEO GAMES ATTRACTING YOUNG GIRLS TO THE MARKET MICROSOFT CORP IS PLACING A BIG BET ABOUT 100 MILLION A YEAR THAT IT CAN BUILD AN INTERACTIVE TV FRANCHISE THAT WILL MATCH ITS DOMINANT POSITION IN PERSONAL COMPUTERS A TEAM OF MORE THAN 300 PROGRAMMERS AND OTHER TECHNOLOGY WIZARDS IS TACKLING THE BIGGEST PROGRAMMING CHALLENGES FOR MULTIMEDIA SERVICES OPERATING SYSTEMS TO CONTROL A NEW GENERATION OF TV SETTOP CONVERTERS VIDEOSERVER SOFTWARE TO COORDINATE SERVICES SUCH AS INTERACTIVE SHOPPING AND VIDEO CONFERENCING NAVIGATORS OR PROGRAMGUIDE SOFTWARE ETCHED ON CHIPS AND INSTALLED IN TVS VCRS AND SETTOP BOXES TO HELP USERS FIND THEIR WAY THROUGH MYRIAD ENTERTAINMENT CHOICES AND PROGRAMMING TOOLS INCLUDING TEMPLATES THAT WOULD PUT THE CORNER HARDWARE STORE ON AN EQUAL FOOTING WITH MACY'S IN DESIGNING CATCHY ADS AND SHOPPING SERVICES THE REDMOND WASH SOFTWARE GIANT TRAILS COMPETITORS IN MOST OF THESE FIELDS BUT IT HAS THE BROADEST CAPABILITIES TO DESIGN A COMPLETE PACKAGE OF PROGRAMS AND AN ADVANTAGE IN SHARING THE NEW COMMUNICATIONS TECHNOLOGIES WITH HOME AND OFFICE PCS MICROSOFT'S STRATEGY ASSUMES THAT BUSINESSES WILL USE MULTIMEDIA NETWORKS FIRST AND THAT HOME COMPUTERS AND TV CONVERTERS WILL SWAP MULTIMEDIA INFORMATION AND PROGRAMMING LATER THE COMPANY HAS EMBRACED MANY PARTNERS ONE ALLIANCE WITH INTEL CORP AND GENERAL INSTRUMENT CORP AIMS TO BUILD TV SETTOP CONVERTERS WITH INTERACTIVE FEATURES FOR CABLE SUBSCRIBERS MICROSOFT RECENTLY SIGNED A DEAL WITH TCI TO TEST ITS OPERATINGSYSTEM SOFTWARE IN SEATTLE AND DENVER AND THE COMPANY HAS BEEN TALKING WITH TCI TIME WARNER INC AND OTHERS ABOUT COLLABORATING ON SOFTWARE STANDARDS CAUSING CONSTERNATION AMONG COMPETITORS WHO FEAR A BACKROOM DEAL WILL GIVE AN UNFAIR ADVANTAGE TO SECONDRATE SOFTWARE NONSENSE SAYS MICROSOFT CHIEF EXECUTIVE WILLIAM GATES TELECOMMUNICATIONS COMPANIES WON'T BEGIN LOCKING THEMSELVES INTO SOFTWARE FOR SEVERAL YEARS WITH SO MANY BILLIONS OF DOLLARS IN NETWORK IMPROVEMENTS AT STAKE THEY WILL HAVE EXTENSIVELY TESTED ALL THE OPTIONS BY THEN AND IT IS IMPOSSIBLE TO SAY WHO WILL WIN MR GATES SAYS BUT HE ADDS WE ARE DOING A BROADER SET OF THINGS THAT ARE MORE INTEGRATED INTO PCS AND IT'S A LOT MORE AMBITIOUS THAN ANYTHING ELSE WE ARE AWARE OF HARDLY A WEEK PASSES WITHOUT TIME WARNER ANNOUNCING SOME NEW SERVICE FOR ITS FULL SERVICE NETWORK IN ORLANDO FLA AN AMBITIOUS ARRAY OF OFFERINGS THAT WILL GO ONLINE TO SOME 4000 HOMES LATER THIS YEAR LIKE MANY LARGE CABLE OPERATORS TIME WARNER HAS ITS FEET IN BOTH THE DISTRIBUTION NETWORKS AND THE CONTENT THAT WILL FILL THEM THE NEW YORKBASED COMPANY IS THE NATION'S NO 2 CABLE OPERATOR WITH 72 MILLION SUBSCRIBERS IT HAS VAST HOLDINGS IN PROGRAMMING FROM WARNER BROS MOVIES TO THE CABLE NETWORKS HOME BOX OFFICE AND CINEMAX IT IS AMONG THE LARGEST MUSIC COMPANIES HOME TO ERIC CLAPTON MADONNA AND OTHER STARS AND IT IS THE NATION'S LARGEST MAGAZINE PUBLISHER WITH TITLES FROM PEOPLE FORTUNE AND SPORTS ILLUSTRATED TO SOUTHERN LIVING AND HIP MUSIC MAGAZINE VIBE WHEN TIME WARNER ANNOUNCED PLANS FOR ITS FULL SERVICE NETWORK LAST YEAR CHAIRMAN AND CEO GERALD LEVIN CALLED IT THE KEYSTONE OF TIME WARNER'S VISION AND STRATEGY TO BUILD IT TIME WARNER HAS CREATED ALLIANCES WITH LEADING COMPUTERCHIP MAKERS SOFTWARE DEVELOPERS AND VIDEO PROGRAMMERS EARLIER THIS MONTH HOWEVER TIME WARNER SAID IT WAS PUSHING BACK THE PROJECT'S LAUNCH TO THE FOURTH QUARTER FROM APRIL BECAUSE OF SNAGS AT KEY SUPPLIERS THE DELAY PROVIDED A REMINDER OF THE MAMMOTH CHALLENGE FACING TIME WARNER AND OTHER COMPANIES BUILDING NETWORKS AS THEY TRY TO PULL TOGETHER ALL THE HARDWARE AND SOFTWARE NEEDED TO MAKE THE NEW SERVICES WORK TIME WARNER NOW PLANS TO BEGIN OFFERING MOVIESONDEMAND INTERACTIVE GAMES AND HOME SHOPPING IN ORLANDO BY YEAR'S END FOLLOWED BY OTHER SERVICES SUCH AS NEWSONDEMAND INTERACTIVE ENCYCLOPEDIAS AND DISTANCE LEARNING THE COMPANY RECENTLY ANNOUNCED PLANS FOR A SERVICE CALLED AUTOMALL WHICH WILL ALLOW VIEWERS TO BROWSE THROUGH CAR AND TRUCK SELECTIONS AND THEN ASK A SALESPERSON TO DRIVE THE CAR OUT TO THE VIEWER'S HOUSE FOR A TEST DRIVE TO HELP PAY FOR INTERACTIVE PROGRAMMING AND UPGRADES IN ITS CABLE SYSTEMS TIME WARNER WILL RELY PARTLY ON A NEW PARTNER THE REGIONAL PHONE COMPANY U S WEST INC WHICH INVESTED 25 BILLION IN RETURN FOR A 255 STAKE IN THE COMPANY'S CABLE AND ENTERTAINMENT DIVISIONS BUT ONE BIG WORRY FOR INTEGRATED COMPANIES SUCH AS TIME WARNER IS THAT NEW SERVICES PARTICULARLY MOVIESONDEMAND MAY RAID THE REVENUE OF PAYTV SERVICES SUCH AS HBO WHICH IS ALREADY LOSING SUBSCRIBERS AND WITH TOTAL DEBT OF 15 BILLION TIME WARNER CAN ILL AFFORD TO LOSE REVENUE IN ANY OF ITS BUSINESSES VIACOM INC IS THE HOUSE THAT SUMNER REDSTONE BUILT THE FEISTY 70YEAROLD CHAIRMAN WHO GREW UP WITH SILENT FILMS AND LATER RAN A CHAIN OF MOVIE THEATERS HAS PARLAYED AN ATTRACTIVE BLEND OF BRANDNAME ASSETS INTO A PROGRAMMING POWERHOUSE AROUND THE WORLD MUSIC VIDEOS ON MTV NOW REACH MORE THAN 250 MILLION HOUSEHOLDS WORLDWIDE LAST MONTH MR REDSTONE WON A PROTRACTED 1980SSTYLE BIDDING WAR WITH QVC INC FOR PARAMOUNT COMMUNICATIONS INC BUT THE PRIZE CAME WITH A HEFTY PRICE 975 BILLION IN CASH AND STOCK VIACOM'S MERGER WITH PARAMOUNT AND ITS PLANNED ACQUISITION OF BLOCKBUSTER ENTERTAINMENT CORP WOULD CREATE AN ENTERTAINMENT BEHEMOTH WITH COMBINED SALES OF ABOUT 12 BILLION BUT VIACOM MUST NOW DEAL WITH PARING ABOUT 10 BILLION IN DEBT REVIVING PARAMOUNT PICTURES AND CREATING SYNERGIES WITH PARAMOUNT'S VAST HOLDINGS WHICH INCLUDE A PUBLISHING DIVISION AND PRO SPORTS TEAMS LIKE MOST CABLE COMPANIES THESE DAYS NEW YORKBASED VIACOM HAS BIG PLANS FOR ITS FULLSERVICE TEST CABLE SYSTEM BASED IN CASTRO VALLEY CALIF AND SCHEDULED TO START OPERATING THIS FALL WITH AT&T ITS MAIN PARTNER IN THE VENTURE VIACOM WILL OFFER SUCH SERVICES AS VIDEOONDEMAND INTERACTIVE GAMES AND HOME SHOPPING AS WELL AS POCKET PHONES THE NEW SYSTEM WILL ALSO GIVE USERS FASTER ACCESS TO ONLINE COMPUTER SERVICES SUCH AS PRODIGY AND AMERICA ONLINE THROUGH THEIR CABLE LINK BUT THE CASTRO VALLEY SYSTEM WILL BE MORE OF A SHOWCASE FOR VIACOM'S PROGRAMMING HOLDINGS THAN FOR ITS TECHNOLOGY THE COMPANY IS PLOTTING INTERACTIVE VERSIONS OF MTV AND VH1 IN WHICH VIEWERS SELECT THE MUSIC LINEUP AS WELL AS INTERACTIVE CHILDREN'S GAMES ON NICKELODEON ANOTHER POSSIBILITY SHOWTIMEONDEMAND IN WHICH VIEWERS CHOOSE FROM ANY MOVIE PLAYING ON SHOWTIME OF COURSE MTV CAN'T KEEP GROWING FOREVER AND IT IS FACING INCREASED COMPETITION THE WORLD'S LARGEST RECORD COMPANIES LED BY TIME WARNER AND SONY ARE PLANNING THEIR OWN MUSIC VIDEO CHANNELS WORLDWIDE SHOWTIME CONTINUES TO LIMP ALONG IN THE SHADOW OF TIME WARNER'S HBO TO PREPARE ITSELF FOR THE MULTIMEDIA ERA VIACOM IN 1992 CREATED A NEW MEDIA UNIT WHICH PRODUCES INTERACTIVE PROGRAMMING FOR CDROM AS WELL AS VIDEOGAME FORMATS TITLES INCLUDE ROCKO'S MODERN LIFE BASED ON AN ANIMATED SHOW ON NICKELODEON THOSE PROJECTS ARE THE FRUIT OF VIACOM'S PURCHASE LAST YEAR OF ICOM SIMULATIONS INC A SMALL CHICAGOBASED PRODUCER OF INTERACTIVE GAMES AND PROGRAMMING THE DIVISION IS WORKING ON OTHER VIACOM TITLES IT PREDICTS WILL BE BIG INTERACTIVE SELLERS INCLUDING BEAVIS AND BUTTHEAD LAST YEAR DURING ITS FIGHT FOR PARAMOUNT VIACOM FOUND A PARTNER IN NYNEX CORP WHICH INVESTED 12 BILLION AND COULD CONTRIBUTE TELEPHONE EXPERTISE SHOULD RESTRICTIONS ON CABLETELEPHONE CROSSOWNERSHIP BE EASED VIACOM ALSO AGREED TO ACQUIRE BLOCKBUSTER THOUGH FINAL APPROVAL IS UNCERTAIN BLOCKBUSTER'S VIDEO RETAIL BUSINESS FACES MANY LONGTERM QUESTIONS BUT FOR NOW THE COMPANY OFFERS ANNUAL CASH FLOW OF A HALFBILLION DOLLARS SILICON GRAPHICS INC IS DEFINING THE STATE OF THE ART IN COMPUTERIZED IMAGERY THE COMPANY BASED IN MOUNTAIN VIEW CALIF MAKES GRAPHICS WORKSTATIONS BIG AND POWERFUL COMPUTERS THAT CAN SIMULATE A MOLECULE ON THE SCREEN AND THEN SPIN IT IN ANY DIRECTION OR SHOW WIND FLOWING OVER AN AIRPLANE WING CONSUMERS CAUGHT A GLIMPSE OF THE COMPANY'S WIZARDRY IN TERMINATOR 2 AND JURASSIC PARK WITH THOSE CREDENTIALS SGI HAS LANDED SOME HIGHPROFILE JOBS IN MULTIMEDIA FOR TIME WARNER'S INTERACTIVETELEVISION TRIAL IN ORLANDO SGI IS PROVIDING MICROCHIPS AND DESIGNING HARDWARE AND SOFTWARE THAT WILL RUN ON POWERFUL SETTOP BOXES THOUGH IT IS ONE OF THE SUPPLIERS WHOSE DELAYS FORCED TIME WARNER TO PUSH BACK THE START OF THE SERVICE SGI IS ALSO STARTING TO SUPPLY BIG DIGITAL STOREHOUSES CALLED VIDEO SERVERS AND SOFTWARE THAT WILL PROVIDE TWOWAY ENTERTAINMENT AND VIDEO COMMUNICATIONS TO 4000 HOMES WE ARE REALLY SCRAMBLING TO DO IT SAYS EDWARD MCCRACKEN SGI'S CHIEF EXECUTIVE ORLANDO IS DRIVING OUR TECHNOLOGY EVEN MORE THAN A LOT OF THE MILITARY APPLICATIONS WE'RE INVOLVED IN THE COMPUTER MAKER IS ALSO BRINGING HIGHEND GRAPHICS TECHNOLOGY TO VIDEO GAMES WITH PARTNER NINTENDO IN ARCADE MACHINES SLATED FOR INTRODUCTION THIS YEAR AND IN HOME GAME PLAYERS IN 1995 BUT COMPETITORS QUESTION WHETHER SGI CAN EVER PLAY TO A MASS AUDIENCE ESPECIALLY SINCE THE COMPANY'S HERITAGE IS SELLING TO ENGINEERS WHO DIDN'T BALK AT 50000 WORKSTATIONS ITS MACHINES NOW RANGE FROM 4995 TO 1 MILLION SUPERCOMPUTERS TO SET A STANDARD FOR INTERACTIVE ENTERTAINMENT THE COMPANY IS RACING CONSUMERORIENTED COMPANIES SUCH AS APPLE COMPUTER INC MICROSOFT AND 3DO MR MCCRACKEN SAYS HE ISN'T WORRIED THOUGH SGI'S SETTOP PROTOTYPES IN ORLANDO WILL COST MORE THAN 2500 EACH A PRICE OF 250 IS WITHIN REACH WHEN MASS ROLLOUTS BEGIN IN 1996 HE SAYS WHEN ASKED TO EXPLAIN QVC'S MISSION CHAIRMAN BARRY DILLER LIKES TO JOKE THAT HE WANTS CONVENIENCE ABOVE ALL BUYING UNDERWEAR IN YOUR UNDERWEAR A MEDIA MOGUL IF EVER THERE WAS ONE MR DILLER WAS DISTRACTED BY THE LONG BATTLE FOR PARAMOUNT THOUGH HE LOST THAT FIGHT HE IS STILL LOOKING FOR ACQUISITIONS AND HE REMAINS FOCUSED ON QVC BASED IN WEST CHESTER PA AND HOW TO ENLARGE A COMPANY THAT ALREADY CHURNS OUT 12 BILLION IN SALES WHEN MR DILLER WHO BROUGHT AMERICA THE MOVIE OF THE WEEK AT ABC AND BUILT THE FOX NETWORK FROM SCRATCH ARRIVED AT QVC IN 1992 THE COMPANY BECAME A WALL STREET FAVORITE OVERNIGHT BUT THESE DAYS EVERYONE INCLUDING MR DILLER IS WAITING TO SEE IF HOME SHOPPING CAN MOVE INTO THE INTERACTIVE AGE AND ATTRACT A BROADER AUDIENCE MUCH OF THIS INTERACTIVE ERA REMAINS UNKNOWN HE SAYS OTHER THAN TO SAY A HIGHCAPACITY NETWORK WILL BE BUILT THE WHO HOW AND WHEN IS CONFUSING AT THE MOMENT SO FAR HE HAS MADE SOME COSMETIC CHANGES TO QVC'S ONAIR LOOK AND HAS HIRED AN ALLSTAR TEAM TO REVAMP THE NETWORK AND ITS OFFSPRING Q2 A NEW SHOPPING SERVICE AIMED AT MORE ACTIVE AND AFFLUENT VIEWERS IS PREPARING FOR A MAY LAUNCH PERSUADING ITS TARGET AUDIENCE TO GIVE UP THE TACTILE EXPERIENCE OF BROWSING THROUGH MALLS FOR SHOPPING ON THE SOFA WILL BE AN AWESOME TASK AND CLOSE BEHIND QVC ARE SEASONED RETAILERS INCLUDING RH MACY & CO AND SPIEGEL INC THAT ALSO PLAN SHOPPING CHANNELS THOUGH MR DILLER PLANS TO BEGIN INTRODUCING INTERACTIVE SERVICES IN 1995 HE KNOWS THE ROAD TO PUSHBUTTON SHOPPING WILL BE SLOW I THINK OUR JOB IS TO BE MUCH MORE IN THE EVOLUTIONARY MODE HE SAYS FIRST WE HAVE SOPHISTICATED BACKROOM COMPUTERS TAKING MILLIONS OF CALLS THE STEP FROM THERE IS TO MORE SERVICES TO TAKING THE BIAS OFF HOME SHOPPING TO MARKETING TO RATIONALIZING THE BUSINESS THAT'S A FIVEYEAR PROGRAM CHANCES ARE YOUR NAME TELEPHONE NUMBER OR BANKACCOUNT NUMBER IS STORED IN THIS COMPANY'S SOFTWARE BASED IN REDWOOD SHORES CALIF ORACLE CORP SERVES HUGE INTERNATIONAL BUSINESS CUSTOMERS MCDONALD'S CORP KEEPS TRACK OF INVENTORIES WITH ORACLE SOFTWARE AT&T RUNS ITS BILLING SYSTEMS ON ORACLE SOFTWARE NOW THE COMPANY MAY STORE THE MOVIE YOU WATCH THIS YEAR IT WILL START DELIVERING VIDEO SERVERS THE GIANT COMPUTERIZED WAREHOUSES THAT WILL STORE AND RETRIEVE GAMES MOVIES AND TEXT IN DIGITAL FORM FOR THE FULLSERVICE NETWORKS BEING BUILT BY CABLE AND TELEPHONE COMPANIES IT'S A NATURAL EXTENSION OF WHAT WE WERE DOING SAYS TERENCE J GARNETT SENIOR VICE PRESIDENT OF THE NEW MEDIA DIVISION WE'RE JUST STORING NEW TYPES OF DATA INSTEAD OF ACCOUNTING DATA WE CAN HANDLE A TWOHOUR MOVIE ORACLE CHIEF EXECUTIVE LAWRENCE ELLISON IS LEADING A GROUP OF COMPANY EXECUTIVES SEEKING TO BRIDGE THE GAP BETWEEN HOLLYWOOD AND SILICON VALLEY EXPLAINING THE FINER POINTS OF DIGITAL STORAGE TO PEOPLE WHO DON'T KNOW A MEGABIT FROM A KILOBYTE BELL ATLANTIC AND U S WEST HAVE CHOSEN ORACLE'S VIDEO SERVERS TO DELIVER MOVIESONDEMAND AND INTERACTIVE SHOPPING SERVICES OVER THEIR PHONELINE NETWORKS CAPITAL CITIES/ABC INC AND WASHINGTON POST CO HAVE AGREED TO WORK WITH ORACLE TO DEVELOP ELECTRONIC SERVICES INCLUDING VIDEO NEWSONDEMAND A VIEWER WATCHING A NEWS BROADCAST OF A STORY ON HAITI FOR EXAMPLE MIGHT USE THE TV REMOTE CONTROL TO RETRIEVE RELATED NEWS FOOTAGE TEXT AND MAPS THAT WOULD HELP EXPLAIN THE SITUATION VIDEO SERVERS ARE CRUCIAL TO PROVIDING TELEVISION VIEWERS WITH THE MYRIAD SERVICES THAT CABLE AND TELEPHONE COMPANIES HAVE PROMISED AND WITH BILLIONS OF DOLLARS IN POTENTIAL SALES SOME POWERFUL COMPETITORS HAVE JOINED IN THE CHASE INCLUDING AT&T HEWLETTPACKARD CO INTERNATIONAL BUSINESS MACHINES CORP AND SILICON GRAPHICS HE IS THE BOY WONDER OF INTERACTIVITY FROM CONSUMERELECTRONICS SHOWS TO CABLE CONFERENCES COAST TO COAST WM TRIP HAWKINS CAN BE FOUND ON STAGE JOYSTICK IN HAND HOLDING COURT ABOUT THE FUTURE OF VIDEO ENTERTAINMENT WITH BOYISH GOOD LOOKS AND ENTHUSIASM MR HAWKINS IS THE INSPIRATION FOR THE PUSH AND SOME SAY THE HYPE IN INTERACTIVE GAMES AND SERVICES THESE DAYS THE 40YEAROLD MR HAWKINS IS WORKING FURIOUSLY TO SET AN INDUSTRY STANDARD FOR CDROMBASED MULTIMEDIA PLAYERS HIS COMPANY 3DO CO OF REDWOOD CITY CALIF IS A STARTUP THAT LICENSES TECHNOLOGY FOR THE 3DO INTERACTIVE MULTIPLAYER WHICH COMBINES A CDROM PLAYER COMPUTING CAPABILITIES TEXT AND SHARPER GRAPHICS AND CRISPER SOUND THAN OTHER GAME MACHINES BUT THE MARKET IS NASCENT AND BIGLEAGUE COMPETITORS INCLUDING SONY CORP AND SEGA PLAN TO INTRODUCE THEIR OWN MULTIMEDIA PLAYERS EACH INCOMPATIBLE WITH OTHERS NEXT YEAR NO ONE IS A FRONTRUNNER YET MR HAWKINS ARGUES THAT 3DO HAS TWO KEY ADVANTAGES ITS MACHINES ARE ALREADY IN STORES AND ARE MORE ADVANCED THAN COMPETITORS' THE WHOLE BALL GAME FOR US WILL UNFOLD IN 24 MONTHS SAYS MR HAWKINS THE QUESTION IS CAN WE BUILD A MARKETPLACE BEFORE THEY GET A CHANCE TO GET GOING IF WE DON'T IT'S A FRAGMENTED MARKET IT ISN'T CLEAR WHETHER CONSUMERS ARE READY FOR SUCH A CONTRAPTION EVEN AFTER THE PRICE WAS CUT LAST MONTH TO 500 DIMINISHED EXPECTATIONS HAVE KNOCKED 3DO'S STOCK DOWN TO ABOUT 25 FROM A HIGH OF 47 IN OCTOBER NONETHELESS 20 TITLES FOR USE WITH THE 3DO MACHINEINTERACTIVE GAMES AND EDUCATIONAL AND ENTERTAINMENT SOFTWARE INCLUDING JOHN MADDEN FOOTBALL ARE NOW AVAILABLE AND MORE ARE ON THE WAY THE OTHER COMPANY MR HAWKINS FOUNDED IS HELPING TO BRIDGE THE GAP BETWEEN SILICON VALLEY AND HOLLYWOOD ELECTRONIC ARTS INC SAN MATEO CALIF IS A LEADING PRODUCER OF MULTIMEDIA SOFTWARE AND SOFTWARE FOR HANDHELD VIDEO GAMES AT THE CONSUMER ELECTRONICS SHOW THIS YEAR ELECTRONIC ARTS INTRODUCED SHOCK WAVE INVASION EARTH 2019 ITS FIRST INTERACTIVE MOVIE A SCIFI THRILLER THAT PLAYS ON THE 3DO MACHINE IT BLENDS HOLLYWOOD FILM PRODUCTION WITH STATEOFTHEART COMPUTER GRAPHICS AND THE COMPANY LAST MONTH AGREED TO ACQUIRE BRODERBUND SOFTWARE INC A GROWING EDUCATIONALSOFTWARE COMPANY IN A STOCK SWAP VALUED AT 400 MILLION CHANNEL SURFING WON'T BE EASY IN AN ERA OF 500 CHANNELS MANY COMPANIES HAVE SET OUT TO BUILD WHAT WILL PROBABLY BE THE FIRST INTERACTIVE INNOVATION WIDELY USED BY VIEWERS SOFTWARE CALLED NAVIGATORS ONSCREEN GUIDES TO HELP SORT THROUGH ALL THE PROGRAM CHOICES AN EARLY FAVORITE IS STARSIGHT TELECAST INC A SMALL PUBLICLY HELD COMPANY IN FREMONT CALIF WHOSE NAVIGATOR SOFTWARE WILL START SHOWING UP IN HOMES THIS YEAR THE SOFTWARE LOADED IN CHIPS AS PART OF VIDEO EQUIPMENT WILL ENABLE VIEWERS TO SEARCH PROGRAMS BY TITLE THEME SPORTS DRAMA COMEDY OR PLAIN OLD CHANNEL SURFING AND WILL LET THEM RECORD A PROGRAM WITH A TOUCH OF A BUTTON USING A REMOTE CONTROL A VIEWER WILL BE ABLE TO PULL UP A PROGRAM GRID SIMILAR TO THOSE PUBLISHED IN NEWSPAPERS LOOK THROUGH SEVEN DAYS OF PROGRAMMING AND EVEN PULL UP A DESCRIPTION OF THE PROGRAM NOW SHOWING AND THE TIME REMAINING THIS IS REAL SAYS STARSIGHT CHAIRMAN MICHAEL FABER WHETHER OR NOT THE SUPERHIGHWAY COMES WE'RE ALREADY THERE THE SMALL COMPANY WHICH WENT PUBLIC IN JULY AND HAS YET TO REPORT A PROFIT HAS ALREADY DRAWN INVESTMENTS FROM LEADING CABLE OPERATORS INCLUDING VIACOM TRIBUNE CO AND COX ENTERPRISES INC MORE IMPORTANT STARSIGHT HAS AGREEMENTS WITH BIG TV AND VCR MAKERS SUCH AS ZENITH ELECTRONICS CORP SAMSUNG ELECTRONICS CO AND PHILIPS ELECTRONICS NV TO BUILD THE STARSIGHT CHIP INTO THIS YEAR'S NEW MODELS IN ADDITION THE LARGEST MAKERS OF CABLE CONVERTERS HAVE AGREED TO INCLUDE THE STARSIGHT CHIP IN THE BOXES THEY SELL TO CABLE OPERATORS STARSIGHT EXECUTIVES CLAIM TO HAVE THE STRONGEST GRIP ON THE TECHNOLOGY WITH FOUR PATENTS COVERING MANY FEATURES BUT ALREADY IT HAS SUED AND BEEN COUNTERSUED OVER THE PATENTS THERE'S NO GUARANTEE HOW LONG THE COMPANY CAN WITHSTAND SUCH CHALLENGES AND FORMIDABLE COMPETITORS ARE LINING UP TCI AND NEWS CORP HAVE INVESTED IN A VERSION OF NEWS CORP'S VENERABLE PRINT GUIDE CALLED TV GUIDE ONSCREEN UNITED VIDEO SATELLITE GROUP INC WHICH OWNS THE SCROLLING GUIDE NOW AVAILABLE ON MANY CABLE SYSTEMS IS ALSO DEVELOPING A NAVIGATOR AS ARE OTHERS IN MANY WAYS BRIAN ROBERTS EMBODIES THE NEW GUARD FOR THE CABLE INDUSTRY WHOSE AGING PIONEERS ARE STARTING TO CASH OUT OF A BUSINESS BUILT ON BETTER TV RECEPTION BACK IN THE 1950S AT 34 HE IS PRESIDENT OF COMCAST CORP A FAMILYCONTROLLED COMMUNICATIONS COMPANY FOUNDED BY HIS FATHER RALPH IN 1963 BRIAN ROBERTS WENT DOOR TO DOOR SELLING CABLE SUBSCRIPTIONS IN HIGH SCHOOL WORKED AT THE COMPANY THROUGH COLLEGE AND HASN'T STOPPED YET TODAY HE SERVES ON EXECUTIVE COMMITTEES AT CABLELABS THE INDUSTRY RESEARCH ARM AND THE NATIONAL CABLE TELEVISION ASSOCIATION TWO CRITICAL DECISIONMAKING BODIES IN THE CABLE INDUSTRY COMCAST IS CONSIDERED A PLUM BY BOTH CABLE AND TELEPHONE ANALYSTS BECAUSE OF ITS MIX OF ASSETS THE PHILADELPHIABASED COMPANY HAS MORE THAN FOUR MILLION CABLE SUBSCRIBERS EQUITY STAKES IN QVC AND TBS A CELLULARPHONE UNIT WITH A STRONG BASE IN THE POPULOUS NORTHEAST CORRIDOR AND OTHER ALTERNATIVEACCESS TELEPHONE PARTNERSHIPS TELECOMMUNICATIONS TECHNOLOGY IS MOVING SO QUICKLY WE CAN'T AFFORD TO PUT ALL OUR EGGS IN ONE BASKET MR ROBERTS SAYS COMCAST IS ONE OF THE HANDFUL OF MAJOR CABLE OPERATORS THAT HAVE YET TO ALLY WITH A MAJOR CORPORATE PARTNER THOUGH HE HAS VOWED NEVER TO SELL THE COMPANY OUTRIGHT TO THE TELEPHONE COMPANIES INTERESTED IN COMCAST MR ROBERTS SAYS HE WOULD CONSIDER A STRATEGIC PARTNER THAT OFFERS THE RIGHT PRICE BACKED BY AN ASTUTE MANAGEMENT TEAM MR ROBERTS HAS MADE SOME SMART MOVES RECENTLY WITH CABLE PROGRAMMING AND TELEPHONE OPERATIONS THAT HELPED PRODUCE A HEALTHY 625 MILLION IN CASH FLOW FOR COMCAST LAST YEAR COMCAST BOUGHT STOCK AND OPTIONS REPRESENTING A 30 STAKE IN NEXTEL COMMUNICATIONS INC A WIRELESS PHONE SERVICE TODAY COMCAST HAS A PAPER PROFIT OF CLOSE TO 1 BILLION ON THAT INVESTMENT IN CABLE THE COMPANY IS UPGRADING ITS US SYSTEMS LAST YEAR IT DOUBLED THE NUMBER OF HOUSEHOLDS IT SERVES WITH FIBEROPTIC LINES AS SMALLER SYSTEMS SELL OUT LOOK FOR COMCAST TO BUY SOME OF THEM TO CONSOLIDATE ITS OWN MARKETS IN BRITAIN COMCAST HAS BEEN CHOSEN TO DELIVER PHONE SERVICE BY 24 OF HOMES IN AREAS WHERE IT HAS LAID WIRES MANY US CABLE COMPANIES ARE USING THE BRITISH MARKET AS A TRAINING GROUND OF SORTS IN CASE CONGRESS PERMITS CABLE AND TELEPHONE SERVICE TO BE OFFERED BY THE SAME COMPANY IS COMCAST A TELEPHONE COMPANY OR A CABLE COMPANY SAYS MR ROBERTS THE WORLD IS UNLIMITED WITH APPLICATIONS A SMALL CLOSELY HELD SOFTWARE COMPANY NAMED MICROWARE SYSTEMS CORP HOPES TO BECOME A MULTIMEDIA GIANT BY DESIGNING THE OPERATING SYSTEMS FOR THE POWERFUL NEW SETTOP CONVERTERS THAT CABLE COMPANIES PLAN TO DEPLOY IN COMING YEARS MICROWARE WHICH HAS ALREADY DESIGNED THE OPERATING SOFTWARE FOR SOCALLED COMPACT DISKINTERACTIVE MULTIMEDIA PLAYERS SOLD BY PHILIPS AND SONY WANTS TO PROVIDE THE PROTOCOL OR COMPUTER LANGUAGE FOR SETTOP BOXES TO TALK TO VIDEO SERVERS THE STOREHOUSES OF MOVIES AND DATA THOUGH OTHER COMPANIES INCLUDING MICROSOFT HAVE THE SAME GOAL TINY MICROWARE ALREADY HAS SCORED BIG BELL ATLANTIC HAS PLACED ORDERS WITH THREE SUPPLIERS FOR MILLIONS OF TV SETTOP CONVERTERS TO OFFER INTERACTIVE SERVICES TO 10 MILLION SUBSCRIBERS BY THE YEAR 2000 AND ALL THREE SUPPLIERS INCLUDING PHILIPS AND IBM WILL USE THE MICROWARE OS/9 OPERATING SYSTEM IN THEIR BOXES WE'RE ALREADY SHIPPING SOFTWARE TO MANUFACTURERS AND THAT'S WHERE THE RUBBER MEETS THE ROAD SAYS PRESIDENT KENNETH KAPLAN WHO OVERSEES 200 EMPLOYEES FROM HIS COMPANY'S HEADQUARTERS IN DES MOINES THE KEY ELEMENT OF MICROWARE'S PRODUCT IS ITS ABILITY TO HANDLE REALTIME TASKS SIMULTANEOUSLY WHILE A VIEWER WATCHES A HOMESHOPPING PROGRAM FOR EXAMPLE THE MICROWARE SYSTEM COULD ALLOW THE VIEWER TO MAKE A BUY DECISION OR CHOOSE WHICH CREDIT CARD TO USE INSTANTLY AND SEAMLESSLY OUR SYSTEM CAN JUGGLE THE SIGNALS QUITE NICELY MR KAPLAN SAYS SONY SPIED THE MULTIMEDIA FUTURE FIVE YEARS AGO WHEN IT PAID 2 BILLION TO ACQUIRE CBS RECORDS A YEAR LATER IT PAID 34 BILLION FOR COLUMBIA PICTURES ENTERTAINMENT INC TODAY THE JAPANESE GIANT IS ONE OF THE WORLD'S LARGEST ENTERTAINMENT PURVEYORS A 34 BILLION EMPIRE WITH OFFICES OR FACTORIES IN 29 COUNTRIES AND MORE THAN 14 BILLION OF ASSETS IN THE US ALONE WHILE CABLE AND PHONE COMPANIES SLUG IT OUT TO SEE WHO BUILDS THE PIPELINE SONY SAYS IT IS HAPPY TO BE AT BOTH ENDS SUPPLYING THE CONTENT TO BE SENT AND THE HARDWARE TO RECEIVE IT THE COMPANY IS NOW TRYING TO ACHIEVE SYNERGY IT IS KNOWN AROUND THE COMPANY AS THE S WORD WITH ITS VAST HOLDINGS THOUGH NOT ALWAYS ON THE CUTTING EDGE THE WAY IT ONCE WAS SONY'S ELECTRONICS DIVISION SELLS TELEVISION SETS CAMCORDERS MULTIMEDIA CDROM PLAYERS COMPUTERS AND CD PLAYERS WHILE SONY PICTURES ENTERTAINMENT RAKES IN MONEY FROM COLUMBIA PICTURES A FEW GOOD MEN BRAM STOKER'S DRACULA TRISTAR PICTURES BASIC INSTINCT AND SONY PICTURES CLASSICS HOWARDS END ITS MUSIC BUSINESS TOO HAS STARS FROM SADE TO THE SPIN DOCTORS BUT THE MUCHBALLYHOOED SYNERGY HAS BEEN SLOW TO BENEFIT THE COMPANY'S BOTTOM LINE NET INCOME WHICH PLUNGED 70 IN THE YEAR ENDED LAST MARCH 31 FELL 406 IN THE FIRST NINE MONTHS OF THE LATEST FISCAL YEAR AND SALES WHICH GREW AT RATES OF MORE THAN 20 IN THE LATE 1980S ROSE JUST 16 IN FISCAL 1993 AND FELL 74 IN THE LATEST NINE MONTHS SONY'S HOLLYWOOD OPERATIONS HAVE HAD THEIR SHARE OF FLOPS AND MANAGEMENT TURNOVER THE COMPANY ALSO HAS HAD A HARD TIME REINING IN STUDIO COSTS AND ITS BIGGEST ATTEMPT AT SYNERGY LAST ACTION HERO WAS A BUST WHEN THE MOVIE FAILED AND OTHER PROJECTS CONNECTED WITH IT WERE SIMILARLY DISAPPOINTING TO BRING ELECTRONICS AND ENTERTAINMENT INTO HARMONY SONY STARTED A NEW ELECTRONICPUBLISHING DIVISION IN 1991 TO MAKE AND DISTRIBUTE SOFTWARE THUS FAR THE UNIT HAS DOUBLED ITS SALES EACH YEAR AND IT HAD A PROFIT IN 1993 ON SALES OF MORE THAN 150 MILLION THE COMPANY SAYS LAST YEAR WITH THE HELP OF SILICON GRAPHICS WORKSTATIONS THE DIVISION PRODUCED CDROM AND VIDEOGAME TITLES USING FOOTAGE AND SOUNDTRACKS FROM THE SONY PICTURES FILMS BRAM STOKER'S DRACULA AND CLIFFHANGER SONY ALSO PLANS TO ROLL OUT ITS OWN VERSION OF AN INTERACTIVE CDROM PLAYER BY 1995 TO PLAY SUCH TITLES PITTING THE COMPANY AGAINST RIVALS LIKE 3DO AND SEGA OLAF OLAFSSON PRESIDENT OF THE DIVISION SAYS IT WILL PUBLISH AND DISTRIBUTE ENTERTAINMENT AND INFORMATIONAL SOFTWARE IN ANY FORMAT THAT LENDS ITSELF TO INTERACTIVITY THIS IS NOT THEORETICAL SYNERGY HE SAYS THIS MAKES SENSE GENERAL INSTRUMENT SELLS MORE EQUIPMENT TO THE CABLE INDUSTRY THAN ANY OTHER COMPANY MORE THAN 1 BILLION A YEAR OF CONVERTER BOXES AMPLIFIERS TRANSMITTERS RECEIVERS EVEN THE FIBEROPTIC AND COAXIAL CABLE DESPITE THE RECENT FCC RATE RESTRICTIONS WHICH MAY SLOW CABLE COMPANIES' CAPITAL SPENDING WE SEE OURSELVES AT THE FULCRUM OF A MAJOR EXPLOSIVE GROWTH CYCLE SAYS HAL KRISBERG A GENERAL INSTRUMENT VICE PRESIDENT CABLE OPERATORS ARE UPGRADING THEIR NETWORKS REPLACING COAXIAL WIRE WITH FIBEROPTIC CABLE AND SWAPPING OLD CONVERTERS FOR POWERFUL NEW COMPUTERLIKE COMPUVERTERS THE LABEL GENERAL INSTRUMENT EXECUTIVES GIVE TO THEIR LITTLE BLACK BOXES THE COMPANY IS LINKING WITH INTEL AND MICROSOFT TO BUILD NEW SMART BOXES A DIRECT CHALLENGE TO A SIMILAR ALLIANCE OF KALEIDA LABS INC A JOINT VENTURE OF APPLE AND IBM MOTOROLA INC AND SCIENTIFICATLANTA INC GENERAL INSTRUMENT'S BIGGEST COMPETITOR IN SUPPLYING EQUIPMENT TO CABLE COMPANIES DESPITE THE SUCCESS OF GENERAL INSTRUMENT'S CABLE SETTOP CONVERTERS THE ELECTRONICS INDUSTRY IS STILL DEBATING WHETHER THE BRAINS OF THE TELEVISION SET SHOULD MIGRATE TO HARDWARE THAT SITS ON TOP OF IT OR EVEN TO THE VIDEO SERVERS THAT WILL FEED IT TV MAKERS WANT TO ELIMINATE THE BOX MOST ARE NOW WORKING ON SMARTER TV SETS INCORPORATING THE SOFTWARE THAT ENABLES VIEWERS TO USE INTERACTIVE GUIDES AND ULTIMATELY A RANGE OF HIGHTECH SERVICES NO MATTER WHERE THE PAYOFF IS IN MULTIMEDIA AT&T SHOULD GET ITS SHARE IT IS INVESTING BILLIONS OF DOLLARS IN WIRELESS SERVICES COMPUTER CHIPS AND NETWORK SOFTWARE AND EVEN IF THESE DON'T PAN OUT AT&T'S LONGDISTANCE NETWORK IS LIKELY TO CAPTURE MUCH OF THE TRAFFIC AND REVENUE GENERATED BY THE NEW SERVICES AT&T BASED IN NEW YORK IS INVOLVED IN FIVE OF THE BIGGEST INTERACTIVE MULTIMEDIA CONSUMER TRIALS PLANNED OR UNDER WAY IN THE US INCLUDING TIME WARNER'S ORLANDO NETWORK AND VIACOM'S CASTRO VALLEY TEST AT&T HAS SIMILAR ARRANGEMENTS WITH GTE CORP AND PACIFIC TELESIS GROUP FOR TIME WARNER AT&T IS SUPPLYING AN ADVANCED SWITCHING SYSTEM CALLED ATM THE NEW SWITCH IS DESIGNED TO HANDLE THE HUGE AMOUNTS OF VIDEO VOICE AND DATA TRAFFIC ANTICIPATED ON THE NEW NETWORKS FOR VIACOM PACIFIC BELL AND GTE AT&T IS SUPPLYING A COMPLETE NETWORK USING COMPUTER VIDEO SERVERS SETTOP BOXES AND ATM SWITCHES TO PUMP MOVIES AND OTHER ENTERTAINMENT TO HOME SUBSCRIBERS AT&T IS BACKING THESE TRIALS WITH SOFTWARE DESIGNED TO STEER THE MULTIMEDIA TRAFFIC THE SOFTWARE WILL ALSO HELP POWER THE TV SETTOP BOXES AND REMOTE CONTROLS THAT SUBSCRIBERS WILL USE TO GAIN ACCESS TO SERVICES SUCH AS SHOPPING AND INTERACTIVE GAMES IN COMPUTER CHIPS AT&T HAS LINED UP BACKING FOR HOBBIT A NEW MULTIMEDIA CHIP FROM CONSUMERELECTRONICS GIANTS SUCH AS NEC CORP MATSUSHITA AND TOSHIBA ANOTHER CHIP CALLED VOICESPAN ALLOWS USERS OF MULTIMEDIA MACHINES TO TRANSMIT HIGHQUALITY SOUND AND DATA THROUGH SEPARATE CHANNELS OVER ONE PHONE LINE CANON INC AND MATSUSHITA PLAN TO USE THE CHIPS IN FAX MACHINES THAT WILL ALLOW PEOPLE TO SPEAK OVER THE PHONE WHILE ALSO SENDING A FAX AT&T AND SEGA WILL USE IT IN AN INTERACTIVE GAME MACHINE THEY ARE DEVELOPING JOINTLY IN WIRELESS PRODUCTS AND SERVICES AT&T OWNS EO INC WHICH MAKES A SMALL DATA COMMUNICATOR SIMILAR IN CONCEPT TO APPLE'S NEWTON AND AT&T IS AN INVESTOR IN GENERAL MAGIC INC A SOFTWARE CONSORTIUM THAT HAS DEVELOPED A PRODUCT CALLED TELESCRIPT WHICH WILL ALLOW USERS OF MULTIMEDIA COMMUNICATORS AND OTHER DEVICES TO LAUNCH ELECTRONIC AGENTS POWERFUL WAYS TO FILTER AND FIND INFORMATION FROM EXTERNAL NETWORKS APPLE MATSUSHITA NIPPON TELEGRAPH & TELEPHONE CORP PHILIPS AND SONY ALSO HAVE INVESTED IN GENERAL MAGIC MR ROBICHAUX IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9403210032 940321 BUSINESS BRIEF DOCKS DE FRANCE SA PROFIT CLIMBED 17 IN 1993 BEFORE EXCEPTIONAL ITEMS DOCKS DE FRANCE SA A FOOD RETAIL CONCERN SAID ITS NET GROUP PROFIT BEFORE EXCEPTIONAL ITEMS ROSE 17 TO 433 MILLION FRANCS 753 MILLION IN 1993 FROM 371 MILLION FRANCS IN 1992 DOCKS DE FRANCE IS BOOSTING ITS NET PERSHARE DIVIDEND TO 11 FRANCS FROM 95 FRANCS PAID OUT LAST YEAR CONSOLIDATED REVENUE GAINED 20 TO 383 BILLION FRANCS FROM 321 BILLION THE GROUP NOTED THAT THE FIGURES FOR THE LATEST YEAR REFLECT THE PURCHASE OF SOCIETE ALSACIENNE DE SUPERMARCHES IN 1993 WHICH WAS CONSOLIDATED AS OF THE SECOND HALF 9403210031 940321 NETHERLANDS' INDUSTRIAL SALES AMSTERDAM INDUSTRIAL SALES IN THE NETHERLANDS DROPPED 6 IN THE FOURTH QUARTER OF LAST YEAR FROM THE FINAL THREE MONTHS OF 1992 THE GOVERNMENT SAID DRAGGED DOWN BY 7 LOWER DOMESTIC DELIVERIES AND A 5 DECLINE IN EXPORTS DUTCH INDUSTRY IN GENERAL SOLD 6 LESS IN ALL OF 1993 THAN A YEAR EARLIER PRELIMINARY FIGURES FROM THE GOVERNMENT'S CENTRAL BUREAU FOR STATISTICS SHOW THE 6 DROP IN THE OCTOBERDECEMBER PERIOD CAME AFTER A 5 DECLINE IN THE THIRD QUARTER OF 1993 BUT A GOVERNMENT ECONOMIST SAID EARLY SIGNS ARE THAT INDUSTRIAL PRODUCTION IN JANUARY MAY HAVE RECOVERED PERHAPS INDICATING HIGHER SALES TOO THE GOVERNMENT HAS YET TO REPORT ON JANUARY INDUSTRIAL PRODUCTION 9403210030 940321 DAEWOO HEAVY INDUSTRIES SEOUL SOUTH KOREA DAEWOO HEAVY INDUSTRIES LTD SAID IT SECURED A CONTROLLING STAKE IN NAMYANG METALS CO A MAKER OF CASTINGS FOR AUTO ENGINES BY PURCHASING 800000 SHARES OR A 2104 EQUITY DAEWOO HEAVY PURCHASED THE STAKE FOR 46 BILLION WON 57 MILLION TO SECURE A SMOOTH SUPPLY OF CASTINGS USED FOR DIESEL AND CAR ENGINES FOR ITS SISTER COMPANY DAEWOO MOTOR CO 9403210029 940321 BEFORE HOLLYWOOD HONORS ITS BEST FILM'S WORST GET THE RASPBERRY BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD THE CRITICS AGREE THE ACADEMY AWARD FOR BEST PICTURE LIKELY WILL GO TO SCHINDLER'S LIST TONIGHT BUT WORST PICTURE IS ANOTHER MATTER GENE SISKEL CHOOSES THE BEVERLY HILLBILLIES WHILE ROGER EBERT PICKS THE CONEHEADS AND MICHAEL MEDVED WHO'S WRITTEN FOUR BOOKS ON BAD FILM THROWS HIS DART AT BODY OF EVIDENCE SO PERHAPS THE GOLDEN RASPBERRY FOUNDATION MADE UP OF 350 AMATEUR CRITICS IS THE BEST AUTHORITY ON BAD YESTERDAY IT BESTOWED ITS 14TH ANNUAL RAZZIE FOR WORST PICTURE AND THREE OF ITS NINE AWARDS ON INDECENT PROPOSAL A PARAMOUNT PICTURES SPOKESWOMAN WOULDN'T COMMENT THE AWARD SHOW'S SITE THE HOLLYWOOD ROOSEVELT HOTEL WHERE THE OSCARS WERE FIRST PRESENTED IN 1929 MAY HAVE LENT THE RAZZIES SOME CLASS BUT ONLY BECAUSE THE HOTEL REJECTED RAZZIE FOUNDER JOHN WILSON'S REQUEST TO USE THE LOADING DOCK NEXT TO ITS DUMPSTER BOTTOM LINE IT'S A JOKE SAYS MR WILSON A FILMTRAILER WRITER THE RAZZIES THRIVE ON PUBLICITY WHICH IS WHY THE GROUP OPENS ITS ENVELOPES A DAY BEFORE THE ACADEMY'S BUT WE ALSO DO A PRETTY GOOD JOB OF PICKING BAD FILMS HE ARGUES A WHOLE NEW WORST WAS THE OPENING NUMBER OF THE SHOW FOR WHICH TACKY AND TASTELESS WOULD BE TERMS OF TRIBUTE RAZZIE MASTERS OF CEREMONY TRADED BARBS ABOUT EVERYTHING FROM BURT REYNOLDS'S TOUPEE TO SHARON STONE'S CHOICE IN UNDERWEAR NO WINNER HAS EVER SHOWED UP TO CLAIM ONE OF THE CHINTZY CERAMIC RASPBERRYATOPAFILMCAN STATUETTES THAT ARE KEPT AROUND JUST IN CASE MR WILSON SAYS HE GOT A FROSTY RESPONSE FROM MADONNA'S AGENCY LAST WEEK WHEN HE CALLED TO INVITE HER TO ACCEPT AS WORST ACTRESS FOR BODY OF EVIDENCE AND MR REYNOLDS FAILED TO CLAIM THE WORSTACTOR RAZZIE FOR COP AND A HALF DESPITE MR WILSON'S URGING THAT THERE WAS ENORMOUS FAVORABLE PUBLICITY IN HAVING THE SENSE OF HUMOR TO DO SO THE GROUP'S BIGGEST MEDIA COUP CAME WHEN JOHNNY CARSON IN 1988 FEATURED BILL COSBY JOKING ABOUT HIS RAZZIE HAT TRICK FOR LEONARD PART 6 DISPLAYING THREE GOLDPLATED TROPHIES WHICH HE'D HAD MADE FOR HIM FOR 7500 EACH HE PROCLAIMED THESE ARE THE GOLDEN RASPBERRIES AND I MADE A SWEEP MR SISKEL IS PARTICULARLY PLEASED THAT MR REYNOLDS WON LET THE RECORD SHOW THAT ROGER EBERT GAVE A POSITIVE REVIEW TO COP AND A HALF' HE SAYS I'M STARTING TO LIKE THESE RAZZIES MORE AND MORE 9403210028 940321 ENTERPRISE SMALL BUSINESSES MAY FACE LOAN PAYMENT OVERCHARGES ERRORS IN CALCULATING INTEREST RATES CAN RESULT IN SHELLING OUT TOO MUCH BY G BRUCE KNECHT STAFF REPORTER OF THE WALL STREET JOURNAL SMALL MATH ERRORS CAN COST SMALL BUSINESSES BIG BUCKS JUST ASK WEST COAST MILLS INC A REAL ESTATE CONCERN IN CHEHALIS WASH THAT HAD REVENUE OF 11 MILLION LAST YEAR GOING OVER ITS BOOKS AN OUTSIDE FIRM IDENTIFIED OVERPAYMENTS TOTALING 24494 ON A VARIABLE INTEREST RATE LOAN OF 930000 THAT WEST COAST MILLS TOOK OUT IN 1987 THE PROLIFERATION OF COMPLEX FORMULAS TO SET INTEREST RATES LATELY IS LEADING TO MANY INADVERTENT OVERCHARGES EXPERTS SAY AS SMALL BUSINESSES WITH THEIR LIMITED STAFF SUPPORT OFTEN DON'T CATCH THE ERRORS THEY BLITHELY KEEP ON PAYING IN THE WEST COAST MILLS CASE THE LENDER HAD MISCALCULATED THE FIRST SCHEDULED INTERESTRATE ADJUSTMENT ON THE HIGH SIDE SETTING AN ERRONEOUS BASE FOR ALL FUTURE RATE CHANGES FURTHERMORE THE BANK NEGLECTED TO MAKE ONE DOWNWARD ADJUSTMENT THAT WAS DUE THE COMPANY WE WERE AMAZED SAYS RICHARD JONES WEST COAST'S GENERAL MANAGER I UNDERSTAND THAT THEY HAVE A LARGE VOLUME OF LOANS BUT IN THIS DAY AND AGE OF COMPUTERS YOU WOULD THINK THEY WOULD DO BETTER THAN THAT UNFORTUNATELY FOR ENTREPRENEURS MR JONES'S EXPERIENCE IS SHARED BY MANY OTHER BUSINESSES WHEN BANKERS AND BORROWERS AND THEIR LAWYERS SIT DOWN TO NEGOTIATE COMMERCIAL LOAN AGREEMENTS THESE DAYS THEY FREQUENTLY COME UP WITH MINDNUMBING FORMULAS FOR ADJUSTING THE RATE OF INTEREST WHEN THE LOAN DOCUMENTS ARE TURNED OVER TO BANK CLERKS ERRORS CAN EASILY CREEP IN AND IF THE BANK IS ACQUIRED BY ANOTHER BANK OR TAKEN OVER BY A GOVERNMENT AGENCY THE ERRORS CAN MULTIPLY UNDETECTED SOME SPECIALISTS SAY THE COST TO BUSINESS OF THE MISCALCULATIONS MAY RUN INTO HUNDREDS OF MILLIONS OF DOLLARS A YEAR COMMERCIAL LOAN ADVOCATES AN ORGANIZATION THAT PLAYED A LEADING ROLE IN PUBLICIZING OVERCHARGES FOR ADJUSTABLERATE RESIDENTIAL MORTGAGES TWO YEARS AGO SAYS ITS EXAMINATION OF 281 MILLION IN 110 VARIABLERATE COMMERCIALPROPERTY LOANS FROM 80 LENDERS FOUND A 68 ERROR RATE AND MOST GOOFS WENT IN THE BANKS' FAVOR TWOTHIRDS WERE OVERCHARGES AND ONLY ONETHIRD WERE UNDERCHARGES CLA SAYS THE OVERCHARGES TOTALED 767000 CLA DIDN'T CALCULATE THE DOLLAR AMOUNT OF THE UNDERCHARGES EXTRAPOLATION FROM THIS DATA SUGGESTS A HUGE OVERCHARGE PROBLEM NATIONALLY THE LAKE BLUFF ILL CONCERN SAYS CLA ITSELF IDENTIFIED THE ERROR AT WEST COAST MILLS CONSUMER LOAN ANALYSTS INC A FORPROFIT AFFILIATE OF THE NONPROFIT CLA SAYS SMALL BUSINESSES ARE ESPECIALLY VULNERABLE THE ERRORS USUALLY AFFECT SMALL COMPANIES THAT OWN ONE OR TWO STRIP MALLS OR AN APARTMENT BUILDING SAYS LARRY POWERS COMMERCIAL LOAN ANALYSTS' PRESIDENT IT'S THE GUY WITH A 4 MILLION LOAN FOR HIM A 50000 OVERCHARGE IS MAKE OR BREAK NOTING THAT HIS COMPANY DISCOVERED 199000 IN OVERCHARGES FOR A 4 MILLION LOAN MR POWERS ADDED PEOPLE DO LOOK AT LOANS BUT THEY ARE NOT ALL SOPHISTICATED ENOUGH TO PICK UP THE ERRORS COMMERCIAL LOAN ANALYSTS SEARCHES FOR MISTAKES FOR CLIENTS IN RETURN FOR FEES EQUAL TO 7 TO 50 OF RECOVERED OVERPAYMENTS FRANK G CREAMER JR MANAGING PARTNER OF CREAMER REALTY CONSULTANTS AND FORMERLY CITIBANK'S EXECUTIVE DIRECTOR OF GLOBAL REAL ESTATE BLAMES THE PROBLEM ON THE FANCY NEW INDEXING INNOVATIONS OF RECENT YEARS TEN YEARS AGO WHEN BANKS PRICED OFF OF THE PRIME RATE THERE WASN'T A PROBLEM MR CREAMER SAYS BUT AS COMPETITIVE PRESSURES CAUSED BANKERS TO OFFER MENUS OF INDEXES FROM WHICH BORROWERS COULD CHOSE MISTAKES WERE INEVITABLE MR CREAMER WHO WORKED AT CITIBANK FOR 18 YEARS SAYS THE BANK INITIATED LOANS WITH AS MANY AS NINE DIFFERENT INDEXES FROM WHICH A BORROWER COULD CHOSE ON A MONTHLY BASIS I DON'T THINK BANKS ARE TRYING TO PULL A FAST ONE OVER THEIR CLIENTS HE SAYS THEY ARE LEGITIMATE ERRORS BANK EXECUTIVES SAY THEY DOUBT THE MISTAKES ARE AS WIDESPREAD AS SOME PEOPLE SUGGEST THERE WAS A PROBLEM WITH RESIDENTIAL MORTGAGES THAT WAS RECTIFIED BUT I AM NOT AWARE OF A SIMILAR PROBLEM WITH COMMERCIAL LOANS SAYS PAUL SETTELMEYER PRESIDENT OF THE BANK OF GREAT NECK IN NEW YORK AND A MEMBER OF THE AMERICAN BANKING ASSOCIATION'S HOUSING AND REAL ESTATE FINANCE COMMITTEE CLA THE AFFILIATE OF THE COMPANY THAT MAKES MONEY LOOKING FOR LOANINDEXING ERRORS OBVIOUSLY BENEFITS FROM THE PERCEPTION THAT SUCH MISCALCULATIONS ARE COMMONPLACE BUT JOHN M GEDDES CLA'S PRESIDENT INSISTS HE ISN'T EXAGGERATING THE PROBLEM AND ADDS EVEN IF IT IS HALF AS BAD AS WE SAY IT IS IT'S STILL A BIG PROBLEM WHILE MANY AFFECTED BORROWERS AGREE THAT MOST MISTAKES ARE JUST THAT SOME PEOPLE HAVE THEIR DOUBTS I WOULD LIKE TO THINK IT'S COINCIDENCE BUT THE HIGH PERCENTAGE OF ERRORS FAVORING BANKS MAKES YOU WONDER SAYS RICHARD FELL MANAGING GENERAL PARTNER OF AMERICAN MINI STORAGE A NEWPORT BEACH CALIF STORAGEFACILITY COMPANY THAT PAID 32816 TOO MUCH ON A 43 MILLION LOAN FROM COAST FEDERAL BANK IN LOS ANGELES IT WAS A MAJOR HIT FOR A COMPANY WHICH HAD ONLY 15 MILLION REVENUE LAST YEAR COAST FEDERAL CONCEDES THAT IT MADE THE ERROR WHATEVER THE SOURCE OF THE ERRORS SOME SMALL BUSINESSES ARE INCREASING THEIR VIGILANCE BETTE SITLER CHIEF BOOKKEEPER WITH TK HARRIS COMMERCIAL REAL ESTATE SERVICES SAYS SHE SPENDS TIME EACH WEEK PORING OVER LOAN DOCUMENTS AND MAKING CALCULATIONS THAT THE CANTON OHIO PROPERTY CONCERN USED TO LEAVE TO ITS BANKERS THE HEIGHTENED VIGILANCE CAME AFTER TK HARRIS LEARNED THAT THE RESOLUTION TRUST CORP WHICH HAD TAKEN OVER A LOAN OF 937500 HAD USED AN INAPPROPRIATE INDEX RESULTING IN A 4592 OVERCHARGE THE RTC'S LOANSERVICING AGENT MDS LOAN SERVICES KANSAS CITY MO ACKNOWLEDGES THE ERROR AND SAYS THE RTC PROMPTLY ISSUED A REFUND BUT MRS SITLER SAYS SHE CAN'T RELAX HER SCRUTINY BECAUSE MORE MISTAKES KEEP POPPING UP THEY CHANGED THE RATE FOUR TIMES LAST YEAR AND IT STILL WASN'T RIGHT SHE SAYS ONLY LAST MONTH HER COMPANY RECEIVED NOTIFICATION OF YET ANOTHER RATE CHANGE AND ONCE AGAIN SHE IS CHALLENGING THE FIGURES IT'S A BAD TIME TO TALK TO ME ABOUT BANKS SHE SAYS I'M FED UP WITH THEM 9403210027 940321 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE LISTED SEVEN INITIAL PUBLIC OFFERINGS AS FOLLOWS EMPHESYS FINANCIAL GROUP INC DEPERE WIS A PROVIDER OF MANAGED CARE MEDICAL GROUP INSURANCE PRODUCTS AND OTHER SERVICES UNDER EFG EOTT ENERGY PARTNERS LP HOUSTON EOT A NEWLY FORMED LIMITED PARTNERSHIP FORMED TO ACQUIRE AND OPERATE THE ASSETS OF EOTT ENERGY CORP A CRUDE OIL GATHERER AND MARKETER EMERGING MARKETS FLOATING RATE FUND INC NEW YORK EFL A CLOSEDEND FUND EXECUTIVE RISK INC SIMSBURY CONN ER A SPECIALTY INSURANCE HOLDING COMPANY FIDELITY ADVISOR EMERGING ASIA FUND INC BOSTON FAE A CLOSED END FUND RCM STRATEGIC GLOBAL GOVERNMENT FUND INC SAN FRANCISCO RCS A CLOSEDEND FUND STORAGE USA INC COLUMBIA MD SUS A REAL ESTATE INVESTMENT TRUST THE NASDAQ STOCK MARKET ADDED THE FOLLOWING EIGHT INITIAL OFFERINGS CIBER INC DENVER CIBR A PROVIDER OF COMPUTERRELATED INFORMATION TECHNOLOGY SERVICES COPART INC VALLEJO CALIF CPRT A SALVAGE VEHICLE SERVICES COMPANY MINNESOTA EDUCATIONAL COMPUTING CORP MINNEAPOLIS MEKK A DEVELOPER OF EDUCATIONAL SOFTWARE FOR CHILDREN NN BALL & ROLLER INC ERWIN TENN NNBR A MAKER OF PRECISION STEEL BALLS AND ROLLERS NORTHWEST AIRLINES CORP EAGAN MINN NWAC THE PASSENGER AIRLINE PRIME RETAIL INC BALTIMORE MD PRME AND PREFERRED STOCK PRMEP A REAL ESTATE INVESTMENT TRUST SPECIALIZING IN FACTORY OUTLET CENTERS TEXAS REGIONAL BANCSHARES INC MCALLEN TEXAS TRBS A BANK HOLDING COMPANY AND TRIPLE S PLASTICS INC VICKSBURG MISS TSSS A MAKER OF HIGHLY ENGINEERED THERMOPLASTIC COMPONENTS NASDAQ ALSO BEGAN TRADING ENCORE COMPUTER CORP FORT LAUDERDALE FLA ENCC A DEVELOPER OF COMPUTER OPEN SYSTEMS THE AMERICAN STOCK EXCHANGE ADDED DOLLAR/YEN WARRANTS ISSUED BY MORGAN STANLEY GROUP INC UNDER DYPWS THE INITIAL OFFERING OF JALATE LTD LOS ANGELES JLT A MARKETER OF MODERATELY PRICED WOMEN'S WEAR AND REFAC TECHNOLOGY DEVELOPMENT CORP NEW YORK PREVIOUSLY TRADED OVER THE COUNTER REFAC IS A LICENSING AND TECHNOLOGY TRANSFER COMPANY AMEX BEGAN TRADING OPTIONS ON OVERTHECOUNTER STOCK OF MAXICARE HEALTH PLANS INC THE CHICAGO BOARD OPTIONS EXCHANGE ON MARCH 21 WILL BEGIN TRADING OPTIONS ON ALDILA INC AND ON GRUPO TELEVISA SA GLOBAL DEPOSITARY SHARES AND ON MARCH 17 BEGAN TRADING OPTIONS ON EASTMAN CHEMICAL CO AND GRUPO MEXICANO DE DESARROLLO SA THE CBOE WILL ALSO LIST LONGTERM EQUITY ANTICIPATION SECURITIES LEAPS ON SNAPPLE BEVERAGE CORP MONDAY MARCH 21 9403210026 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 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 IS PUSHING FOR A HIGHER VALUATION THAN SOME OTHER DIRECTORS WANT IF MR TISCH WINS OVER MACY'S BOARD SOME SENIOR CREDITORS ARE THREATENING TO LINE UP BEHIND MACY'S UNWELCOME SUITOR FEDERATED DEPARTMENT STORES INC DANIEL HARMETZ THE FIDELITY INVESTMENTS MUTUALFUND MANAGER WHO HAS BEEN NEGOTIATING WITH MACY'S MANAGEMENT ON A REORGANIZATION PLAN THAT WOULD ALLOW THE COMPANY TO REMAIN INDEPENDENT SAID OUR PLAN IS PREMISED ON VALUATIONS THAT ARE AT THE HIGHEND OF THOSE DETERMINED BY MACY'S ADVISERS IF THE BOARD CHOOSES TO IGNORE THOSE VALUATIONS FIDELITY WILL NOT SUPPORT A STANDALONE PLAN 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 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 MACY'S CHIEF EXECUTIVE OFFICER MYRON E ULLMAN III HAS BEEN NEGOTIATING WITH GE CAPITAL A UNIT OF GENERAL ELECTRIC CO AND FIDELITY SINCE MIDJANUARY THE MACYGEFIDELITY PLAN WOULD VALUE THE COMPANY AT 35 BILLION MUTUAL FUNDS OF FIDELITY THE BOSTONBASED MUTUAL FUND COMPANY OWN 490 MILLION OF SENIOR BANK DEBT GE CAPITAL'S CEO GARY WENDT AND MR ULLMAN BOTH MEMBERS OF THE BOARD'S FIVEMAN FINANCE COMMITTEE ARE EXPECTED TO OPPOSE MR TISCH 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 MR HARMETZ TOLD OTHERS HE WOULD BE ON THE FIRST FLIGHT TO CINCINNATI WHERE FEDERATED IS BASED SHOULD THE VALUATION EXCEED 35 BILLION 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 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 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 M REILLY CONTRIBUTED TO THIS ARTICLE 9403210025 940321 BUSINESS BRIEF LUCKY LTD SOUTH KOREAN CONCERN SETS VENTURE WITH CHINESE FIRM LUCKY LTD SAID IN SEOUL SOUTH KOREA THAT IT SIGNED AN AGREEMENT WITH CHINA'S ZHEJIANG 2ND LIGHT INDUSTRY ENTERPRISES GROUP FOR A 35 MILLION COSMETICS JOINT VENTURE THE VENTURE FOR WHICH LUCKY WILL FINANCE 62 OF EQUITY WILL START FULL OPERATIONS EARLY NEXT YEAR LUCKY OFFICIALS SAID IN ADDITION LUCKY WILL RECEIVE 5 OF ANNUAL SALES IN ROYALTY FROM ITS CHINESE PARTNER IN RETURN FOR ITS TECHNOLOGY TRANSFER THE OUTPUT WILL BE SOLD IN CHINA TAIWAN AND SOUTHEAST ASIAN COUNTRIES OFFICIALS SAID 9403210024 940321 INTERNATIONAL JAPAN CHINA WARM TO EACH OTHER AT MEETING WHILE THEIR PROBLEMS WITH THE US SIMMER BY CRAIG FORMAN STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING JAPAN AND CHINA ARE WARMING TO EACH OTHER WHILE EACH HAS SIMMERING TENSIONS WITH THE US JAPAN'S PRIME MINISTER MORIHIRO HOSOKAWA IN CHINA OVER THE WEEKEND FOR THE FIRST VISIT BY A JAPANESE PREMIER SINCE 1991 GOT A VERY DIFFERENT RECEPTION FROM THE CHILLY ATMOSPHERE SURROUNDING US SECRETARY OF STATE WARREN CHRISTOPHER'S VISIT LAST WEEK INSTEAD OF CONFRONTATIONAL THE TONE OF THE JAPANESE LEADER'S TRIP WAS COOPERATIVE AND EVEN RELAXED THE MEETING BETWEEN THE TWO REGIONAL GIANTS COMES AMID RAPID ECONOMIC AND POLITICAL CHANGE IN ASIA AND AT A TIME OF RISING TENSION OVER NORTH KOREA'S SUSPECTED NUCLEAR PROGRAM MR HOSOKAWA TOLD CHINA'S LEADERS OF THE WORLD'S GRAVE CONCERN ABOUT PYONGYANG'S CONTINUING RESISTANCE TO INTERNATIONAL INSPECTIONS THE JAPANESE LEADER SAID THE WORLD IS LOSING PATIENCE WITH PYONGYANG AND SAID UN CONSIDERATION OF SANCTIONS IS INCREASINGLY LIKELY BUT HE APPARENTLY FAILED TO WIN ANY SPECIFIC INITIATIVES FROM BEIJING TO USE ITS INFLUENCE ON NORTH KOREA INDEED CHINESE LEADERS SAID RESOLVING KOREAN TENSIONS WILL TAKE MORE TIME THE BUSINESS OF THIS SUMMIT WAS MOSTLY BUSINESS IN MEETINGS WITH CHINA'S PRESIDENT JIANG ZEMIN AND PREMIER LI PENG MR HOSOKAWA TOUCHED BUT DIDN'T FOCUS ON HUMAN RIGHTS AND SAID JAPAN IS CONCERNED WITH CHINA'S SURGING MILITARY EXPENDITURES BUT HE DIDN'T DISPEL CHINA'S EXPECTATIONS OF A BIG INCREASE IN JAPAN'S MULTIBILLIONDOLLAR OVERSEAS AID AND LENDING PACKAGE FOR CHINA HE SAID HE HOPES JAPAN'S MONEY WOULD HELP CHINA'S SLOWERGROWING INTERIOR TO CATCH UP TO THE EXPLOSIVE GROWTH OF ITS COASTAL REGION AND SOUTH A DISPARITY THAT FUELS WORRIES ABOUT CHINA'S ECONOMIC STABILITY EVEN AS ITS ECONOMY BOOMS MR HOSOKAWA ALSO WANTS JAPAN'S MONEY TO IMPROVE CHINA'S ENVIRONMENT THE NATIONS SIGNED AN ENVIRONMENTAL PROTECTION ACCORD YESTERDAY THIS BILATERAL RELATIONSHIP IS ONE OF THE MOST IMPORTANT PILLARS OF OUR EXTERNAL RELATIONS MR HOSOKAWA TOLD HIS HOSTS HE LEAVES CHINA TODAY WITH THE IMPRESSION JAPAN CAN BOOST ITS CHINA TIES EVEN MORE QUICKLY MY IMPRESSION WAS I SAW A LOT MORE VOLKSWAGENS THAN JAPANESE CARS HE SAID PERHAPS THE JAPANESE AREN'T DOING ENOUGH THE SUMMIT'S OVERWHELMING IMAGE WAS LEFT UNSTATED AGAINST THE BACKDROP OF DISAGREEMENTS WITH AMERICA OVER HUMANRIGHTS IN CHINA'S CASE AND TRADE IN JAPAN'S EACH ASIAN NATION CONSIDERS THE OTHER ITS SECONDMOST IMPORTANT BILATERAL RELATION THE COUNTRIES ARE MAJOR TRADING PARTNERS JAPANESE LOANS AMOUNT TO ONETHIRD OF OFFICIAL DEVELOPMENT AID TO CHINA JAPAN'S INVESTMENTS HERE ARE SURGING IN 2000 YEARS OF HISTORY SINOJAPANESE RELATIONS HAVE NEVER BEEN BETTER SAYS CHINESE HISTORIAN YANG ZHENGGUANG FOR MR YANG AND MANY OTHER CHINESE THE BENEFITS ARE BOTH ECONOMIC AND STRATEGIC JAPANESE COMPANIES WHICH HAVE HESITATED TO INVEST ON A LARGE SCALE IN CHINA ARE BEGINNING TO POUR IN AT THE SAME TIME PEACEFUL RELATIONS MEAN A MORE STABLE POLITICAL ENVIRONMENT FOR ASIA CRUCIAL FOR CHINA'S DEVELOPING ECONOMY JAPAN'S NEW INTEREST IN CHINA IS A SIGN OF CHANGE AFOOT IN JAPAN AFTER YEARS OF FOLLOWING AMERICA'S LEAD IN FOREIGN POLICY JAPAN IS CAUTIOUSLY TRYING OUT ITS OWN POLICY AND STRATEGY REFLECTING ITS OWN INTERESTS ON HUMAN RIGHTS ESPECIALLY THOSE DON'T NECESSARILY COINCIDE WITH WASHINGTON'S JAPAN MADE IT CLEAR THAT ITS AGENDA ISN'T TO CHANGE CHINA WHILE MR HOSOKAWA EXPRESSED JAPAN'S BELIEF IN HUMAN RIGHTS AS A UNIVERSAL VALUE JAPAN ALSO INDICATED IT DOESN'T INTEND TO LET CHINA'S HUMANRIGHTS POLICY GET IN THE WAY OF BUSINESS BEIJING SEEMS WILLING TO PLAY ON US FEARS BY TEASING THE US WITH HINTS OF A BIGGER BUSINESS BOOM FOR JAPAN IF AMERICA WITHDRAWS MOST FAVORED NATION TRADE STATUS IT REFERRED TO ITS HUMANRIGHTS DISPUTE WITH THE US AS A DISAGREEMENT WITH A THIRD PARTY THAT DIDN'T INVOLVE JAPAN TOKYO'S INTEREST IN CHINA REFLECTS THE FACT THAT JAPAN WHICH CURRENTLY RUNS A BIGGER TRADE SURPLUS WITH ASIA THAN IT DOES WITH THE US IS INCREASINGLY FINDING ITSELF ECONOMICALLY LINKED TO OTHER COUNTRIES IN THE REGION CHINA'S SIZE AND STRATEGIC SCOPE MEANS JAPAN HAS NO CHOICE BUT TO TRY TO INCREASE OUR ECONOMIC TIES AND OUR POLITICAL LEVERAGE SAYS WATARU HIRAIZUMI A JAPANESE LEGISLATOR AND VETERAN FOREIGNAFFAIRS SPECIALIST IN THE OPPOSITION LIBERAL DEMOCRATIC PARTY THAT'S NOT TO SAY THAT JAPAN SEES EYE TO EYE WITH CHINA'S AGING COMMUNIST LEADERSHIP BOTH LOOK AT EACH OTHER WARILY PROBABLY THE GREATEST ISSUE OF CONFLICT BETWEEN THE NATIONS IS HOW BEST TO LIMIT THE OTHER'S POWER TO SOME EXTENT IF CHINA GROWS TOO RAPIDLY THAT COULD BE A THREAT TO JAPAN SAYS MINEO NAKAJIMA A CHINA SPECIALIST AT TOKYO'S UNIVERSITY OF FOREIGN STUDIES PERHAPS JAPAN'S BIGGEST CONCERN IS CHINA'S MASSIVE WEAPONS BUILDUP MR HOSOKAWA ASKED CHINA'S LEADERS FOR MORE TRANSPARENCY IN THEIR MILITARY SPENDING WHICH HE SAID WOULD EASE TENSIONS THROUGHOUT ASIA TO JAPAN A GOOD ASIA IS A STABLE ASIA WITH CONSISTENT RATES OF GROWTH NEW ECONOMIC PROSPERITY AND NO SINGLE NATION ABLE TO DOMINATE ANY OTHER TOKYO'S STRATEGY APPEARS TO BE TO CAREFULLY RAISE ITS REGIONAL PROFILE AND INFLUENCE WHILE TRYING TO AVOID AROUSING FEARS OF A JAPAN THAT ASPIRES TO POLITICAL SUPERPOWER STATUS INDEPENDENT OF AMERICA'S SECURITY UMBRELLA IF THE US CURRENTLY OFFERS SOME FOREIGNPOLICY PROBLEMS JAPAN FEARS ITS NEXT ONES COULD BE CLOSER TO HOME IN ASIA KATHY CHEN CONTRIBUTED TO THIS ARTICLE 9403210023 940321 CHEMICAL BANKING SELLS BRANCHES NEW YORK CHEMICAL BANKING CORP'S CHEMICAL BANK SAID IT COMPLETED THE SALE OF 29 BRANCHES AND THEIR CONSUMER DEPOSITS TO FLEET BANK OF NEW YORK A UNIT OF FLEET FINANCIAL GROUP PROVIDENCE RI TERMS WEREN'T DISCLOSED THE UPSTATE NEW YORK BRANCHES WERE FORMERLY OWNED BY MANUFACTURERS HANOVER CORP WHICH WAS ACQUIRED BY CHEMICAL IN 1991 9403210022 940321 CORRECTION ARMAND D'AMATO BROTHER OF SEN ALFONSE D'AMATO IS NOT IN A FEDERAL PENITENTIARY THIS FACT WAS MISSTATED IN THURSDAY'S POLITICS & PEOPLE COLUMN ON THE OPED PAGE WHITEWATER AND THE BATTLE OF STALINGRAD ARMAND D'AMATO HAS BEEN CONVICTED OF MAIL FRAUD AND SENTENCED TO FIVE MONTHS IN JAIL HE IS FREE ON BOND PENDING APPEAL 9403210020 940321 DIVIDEND NEWS MAY DEPARTMENT STORES CO MAY DEPARTMENT STORES CO BOLSTERED BY RECORD SALES AND EARNINGS LAST YEAR RAISED ITS ANNUAL DIVIDEND 13 TO 104 A SHARE FROM 92 CENTS THE ST LOUIS DEPARTMENT STORE RETAILER SAID THE INCREASE REFLECTS THE COMPANY'S CONTINUED STRONG FINANCIAL PERFORMANCE AND OUR POSITIVE OUTLOOK FOR LONGTERM GROWTH IT MARKS THE COMPANY'S 19TH CONSECUTIVE DIVIDEND INCREASE FOR THE YEAR ENDED JAN 29 MAY POSTED NET INCOME OF 711 MILLION OR 277 A SHARE UP 18 FROM YEARAGO EARNINGS OF 603 MILLION OR 235 A SHARE REVENUE ROSE 34 TO 1153 BILLION FROM 1115 BILLION 9403210019 940321 RESERVE ASSETS ROSE 152 BILLION LAST MONTH WASHINGTON US OFFICIAL RESERVE ASSETS ROSE 152 BILLION IN FEBRUARY TO 7577 BILLION THE TREASURY DEPARTMENT SAID THE INCREASE COMPARED WITH AN 801 MILLION RISE IN RESERVE ASSETS IN JANUARY TO 7424 BILLION THE DEPARTMENT SAID THE NATION'S HOLDINGS OF FOREIGN CURRENCIES INCREASED 123 BILLION IN FEBRUARY TO 4344 BILLION WHILE GOLD RESERVES REMAINED UNCHANGED AT 1105 BILLION US HOLDINGS OF IMF SPECIAL DRAWING RIGHTS LAST MONTH ROSE 225 MILLION TO 93 BILLION AND ITS RESERVE POSITION AT THE IMF ROSE 68 MILLION TO 1197 BILLION 9403210018 940321 NEWMONT GOLD WINS APPROVAL TO COMBINE ASSETS WITH PARENT DENVER NEWMONT GOLD CO SAID ITS PUBLIC SHAREHOLDERS APPROVED THE COMBINATION OF ITS ASSETS WITH THOSE OF ITS MAJORITY OWNER NEWMONT MINING CORP THE GOLDMINING COMPANIES SAID 94 OF NEWMONT GOLD'S SHARES WERE VOTED IN FAVOR OF THE COMBINATION AND 81 WERE VOTED IN FAVOR OF A NEW PREFERRED STOCK NEWMONT MINING WHICH OWNED 901 OF NEWMONT GOLD'S SHARES HAD AGREED TO VOTE ITS SHARES IN THE SAME PROPORTIONS AS THE VOTES CAST BY NEWMONT GOLD'S PUBLIC SHAREHOLDERS THE PLAN WHICH DIDN'T REQUIRE THE APPROVAL OF NEWMONT MINING'S SHAREHOLDERS LEAVES NEWMONT MINING WITH 892 OF NEWMONT GOLD'S COMMON STOCK AND 100 OF ITS NEW PREFERRED STOCK UNTIL NOW NEWMONT GOLD'S ASSETS WERE MAINLY IN NEVADA WHILE NEWMONT MINING HELD PROPERTIES IN FOREIGN COUNTRIES THE COMPANIES ALREADY HAD ESSENTIALLY THE SAME MANAGEMENT THE COMPANIES STOPPED SHORT OF MERGING COMPLETELY TO AVOID A 379 MILLION GOODWILL CHARGE AGAINST EARNINGS AS PART OF THE COMBINATION NEWMONT MINING IS TO DECLARE TODAY A 12481TO1 STOCK SPLIT SO THAT THE NUMBER OF NEWMONT MINING SHARES OUTSTANDING WILL EQUAL THE NUMBER OF NEWMONT GOLD SHARES OWNED BY NEWMONT MINING THE COMPANIES SAID THEIR COMMON STOCKS WILL CONTINUE TO BE TRADED SEPARATELY ON THE NEW YORK STOCK EXCHANGE BUT BECAUSE THE COMPANIES WILL REPORT THE SAME PERSHARE ASSETS OPERATING RESULTS EARNINGS AND DIVIDENDS THEIR STOCKS ARE EXPECTED TO TRADE AT SUBSTANTIALLY THE SAME PRICE IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE NEWMONT GOLD SHARES CLOSED AT 45 UP 125 WHILE NEWMONT MINING CLOSED AT 5450 UP 125 9403210017 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT WHERE THE MONEY IS THE PRICE IS RIGHT AND THAT'S WHY PURCHASES OF MULTIMEDIA MACHINES HAVE BEGUN TO TAKE OFF BY RALPH T KING JR ASK CONSUMERS IF THEY WANT MULTIMEDIA ELECTRONIC GEAR AND MANY WILL SAY YES BUT THEN ASK THE TOUGH QUESTION HOW MUCH WILL THEY PAY FOR IT THAT'S THE QUESTION THAT CONFRONTS THE MAKERS OF MULTIMEDIA EQUIPMENT COMPUTERS THAT COMBINE AUDIO VIDEO GRAPHICS AND TEXT AND HIGHDEFINITION TELEVISIONS WHICH WILL OFFER SHARPER RESOLUTION AND A GATEWAY TO INTERACTIVE SERVICES IF HISTORY IS ANY GUIDE HOUSEHOLD MEDIA APPLIANCES THAT MERELY ENTERTAIN DON'T COMMAND BIGTICKET PRICES NO MATTER HOW DAZZLING THE TECHNOLOGY FOR INSTANCE COMPACTDISK PLAYERS AND VIDEOCASSETTE RECORDERS DIDN'T START TO SELL FAST UNTIL PRICES AVERAGED BELOW 400 AND ONE VIDEOGAME PLAYER IS WILDLY POPULAR AT 150 BUT ANOTHER MODEL THAT OFFERS RICHER GRAPHICS FLOPS AT 650 PERSONAL COMPUTERS FOR HOME USE BECAME A MASSMARKET ITEM AT A HIGHER PRICE ABOUT 2000 BUT THEY PROMISED TO DO MANY NEW THINGS OWNERS COULD AT LEAST IN THEORY CATCH UP ON THEIR OFFICE WORK BROADEN THEIR KIDS' EDUCATIONAL HORIZONS AND BALANCE THEIR CHECKBOOKS MANY CONSUMERS ENDED UP USING THEM JUST TO PLAY GAMES AND PROCESS WORDS BUT THE PERCEIVED UTILITY OF THE MACHINES WAS AND IS IMMENSE MULTIMEDIA EQUIPMENT SEEMS TO BE FOLLOWING A SIMILAR PATTERN PCS EQUIPPED WITH CDROM DRIVES SOUND BOARDS AND SPEAKERS HAVE ALREADY BECOME WELL ESTABLISHED AS WITH REGULAR PCS THE 2000 PRICE HAS PROVED A POWERFUL LURE WHEN THE MULTIMEDIA MACHINES WERE INTRODUCED AT AN AVERAGE PRICE OF 4500 IN 1988 SALES WERE ANEMIC THEY BARELY PICKED UP TO 87000 UNITS WHEN PRICES FELL TO 2500 IN 1992 BUT LAST YEAR AS PRICES FELL TO 2000 MULTIMEDIA PC SALES ERUPTED TO 17 MILLION UNITS ACCORDING TO DATAQUEST INC A SAN JOSE CALIF MARKETRESEARCH FIRM THE SYSTEMS ARE BEING SNAPPED UP MOSTLY BY HOME RATHER THAN BUSINESS USERS IN THE CONSUMER MARKET YOU HAVE TO HIT CERTAIN PRICE BANDS TO BE SUCCESSFUL SAYS BRUCE RYON DATAQUEST'S MULTIMEDIA ANALYST PRICE HAS TO COME FIRST AND FEATURES ARE NEXT IN THE BUSINESS MARKET IT'S THE OTHER WAY AROUND MULTIMEDIA COMPUTERS HAVE INVADED HOMES FOR THE SAME REASON THEY HAVE STAYED OUT OF OFFICES ENTERTAINMENT VALUE THE SOFT SIDE OF THE TECHNOLOGY THE ELEMENTS OF MOVEMENT SOUND AND COLOR DOESN'T TRANSLATE INTO OBVIOUS PRODUCTIVITY GAINS IN THE WORKPLACE NOW THAT PRICE ISN'T AS MUCH OF A DETERRENT FOR CONSUMERS SHIPMENTS ARE EXPECTED TO MORE THAN DOUBLE BY 1996 TO 38 MILLION UNITS HIGHDEFINITION TELEVISIONS WHICH WON'T REACH THE MARKET UNTIL 1996 FACE A MUCH HIGHER HURDLE DESPITE ALL THE TALK OF 500 CHANNELS MOVIESONDEMAND AND ELECTRONIC SHOPPING THE QUESTION REMAINS WILL CONSUMERS PLUNK DOWN 3500 TO 5000 FOR A TELEVISION AT LEAST INITIALLY WHEN THEY'RE USED TO PAYING ONLY SEVERAL HUNDRED DOLLARS COMPANIES ARE SPENDING A LOT OF MONEY ON HDTV DEVELOPMENT THAT IS VERY SPECULATIVE SAYS BYRON REEVES A PROFESSOR IN THE COMMUNICATIONS DEPARTMENT AT STANFORD UNIVERSITY HOW LONG WILL CONSUMER ACCEPTANCE TAKE AND HOW MUCH WILL PRICES COME DOWN IS THE NO 1 QUESTION IN TERMS OF WHO WINS AND WHO LOSES ROBERT RAST VICE PRESIDENT OF HDTV BUSINESS DEVELOPMENT AT GENERAL INSTRUMENT INC IN CHICAGO ADDS THE CHALLENGE OF THE BUSINESS IS CAN WE GET DOWN TO 2000 BY THE YEAR 2000 COMPANIES ARE COUNTING ON CONSUMERS BEING WILLING TO SHELL OUT A LOT MORE MONEY FOR HDTV THAN CURRENT TV SETS BECAUSE THEY BELIEVE PEOPLE WILL CONSIDER TELEVISIONS EVEN MORE IMPORTANT IN THE INTERACTIVE ERA HDTV SETS ARE BEING DESIGNED FROM THE OUTSET TO BE INFORMATION AS WELL AS ENTERTAINMENT APPLIANCES GATEWAYS THAT WILL BE CAPABLE OF DOWNLOADING CUSTOM SERVICES SUCH AS ELECTRONIC MESSAGES DATABASES AND MOVIESONDEMAND AND THEY WILL PERMIT TWOWAY COMMUNICATIONS SUCH AS SELECTING MERCHANDISE AND EVEN TRYING ON CLOTHES THROUGH A SURROGATE PERSONA OR AGENT THE TV SET WILL BE A COMMUNICATOR OUT INTO THE WORLD AN ELECTRONIC MARKETPLACE SAYS MARC PORAT CHAIRMAN AND CHIEF EXECUTIVE OF GENERAL MAGIC INC A SOFTWARE CONSORTIUM IN MOUNTAIN VIEW CALIF THERE'S ONE PROBLEM TELEVISION AND COMPUTER COMPANIES ARE DEVELOPING SETTOP BOXES THAT WILL ALLOW CONVENTIONAL TVS TO DO MOST OF THOSE SAME THINGS AND HISTORY SAYS CONSUMERS WON'T PAY 2000 FOR AN APPLIANCE THAT DOESN'T OFFER ADDED FUNCTIONALITY BUT HDTV FANS SAY THAT AS CONSUMERS GET HOOKED ON ALL THE NEW ACTIVITIES AND AS THEY SEE THE MUCHHIGHER QUALITY OF HDTV THEY WILL CONSIDER THE NEW SETS A NECESSITY EVEN AT 2000 THIS IS A TV PICTURE ON STEROIDS SAYS JOHN TAYLOR A SPOKESMAN FOR ZENITH ELECTRONICS CORP GLENVIEW ILL IT'S LIKE LOOKING THROUGH A HIGHLY POLISHED WINDOW THE SCREENS WILL BE LARGER THAN MOST AND HORIZONTAL AS IN MOVIE THEATERS ADD A SOUND SYSTEM THAT VIRTUALLY ENVELOPS THE VIEWER AND TODAY'S COLOR SET SOON BEGINS TO SEEM LIKE YESTERDAY'S BLACKANDWHITE UNDOUBTEDLY THE TRANSITION WILL STRAIN THE POCKETBOOKS OF MOST CONSUMERS MOREOVER AS WITH CELLULAR PHONES AND ONLINE DATA NETWORKS HIGH MONTHLY SERVICE CHARGES ARE APT TO DISCOURAGE USE BUT SERVICE SUBSIDIES MAY EMERGE FOR EXAMPLE MERCHANTS COULD HELP CONSUMERS DEFRAY THE COST OF PLUGGING IN TO THE MARKETPLACE THROUGH ELECTRONIC COUPONS AND FREQUENTBUYER PROGRAMS MR PORAT SAYS IN AGGREGATE CONSUMERS ARE CLOSE TO REACHING A SATURATION FOR THEIR TIME BUDGET AND FINANCIAL BUDGET HE SAYS THE ELECTRONIC MARKETPLACE IS AN EXPANSION OF THAT PIE IT GIVES CONSUMERS A METHOD OF FUNDING THEIR HIGHTECH TV THEY WON'T BE BUYING IT FOR THE BETTER PICTURE OR THE SOUND BUT AS A METHOD OF SENDING AN AGENT INTO THE WORLD OF ELECTRONIC MERCHANTS MR KING IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S SAN FRANCISCO BUREAU 9403210016 940321 ECONOMY TRACKING THE ECONOMY KEY STATISTICS SCHEDULED TO BE RELEASED THIS WEEK 9403210015 940321 MCCAW GATES PLAN TO BUILD DATA NETWORK HIGHTECH TITANS ENVISION GLOBAL SATELLITE SYSTEM WITH COST OF 9 BILLION BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HIGHTECH PIONEERS CRAIG O MCCAW AND WILLIAM H GATES ARE JOINING IN AN AUDACIOUS BID TO RAISE CAPITAL AND ATTRACT DOZENS OF PARTNERS TO BUILD A 9 BILLION GLOBAL SATELLITE COMMUNICATIONS SYSTEM THE TWO ENTREPRENEURS HOPE TO LURE NUMEROUS MANUFACTURERS AND GOVERNMENTS TO BACK WHAT WOULD BE AN EXTRAORDINARILY COSTLY PROJECT WHICH THEY DESCRIBE AS A WIRELESS GLOBAL INTERNET BY THE YEAR 2001 IT 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 NEW PARTNERSHIP WHICH THEY CALL TELEDESIC CORP IS TO BE DISCLOSED TODAY IT COULD WELL SERVE THE VAULTING AMBITIONS OF MR MCCAW WHO RUNS CELLULAR GIANT MCCAW CELLULAR COMMUNICATIONS INC AND MR GATES WHO HEADS SOFTWARE TITAN MICROSOFT CORP BUT WIRELESS EXPERTS SAY MESSRS MCCAW AND GATES FACE TREMENDOUS TECHNICAL FINANCIAL AND POLITICAL CHALLENGES MOTOROLA INC ALREADY HAS A HEADSTART IN FORMING A CONSORTIUM TO BUILD A SIMILAR NETWORK IRIDIUM THE NEW MCCAWGATES EFFORT WOULD HAVE TO PERSUADE PRACTICALLY EVERY NATIONAL TELEPHONE COMPANY THROUGHOUT THE WORLD TO BUY INTO ITS PLAN A POLITICAL MINEFIELD GIVEN THE SHAKY FINANCES AND EXISTING ALLIANCES OF MANY NATIONS THE MCCAW NETWORK'S TECHNICAL APPROACH STILL HASN'T BEEN WORKED OUT YET THE MCCAWGATES EFFORT WOULD BE FAR BOLDER AND FAR MORE COSTLY OTHER SYSTEMS ARE PLANNING SIMILAR RURAL COMMUNICATION LINKS AT A FRACTION OF TELEDESIC'S PROJECTED INVESTMENT MOTOROLA'S IRIDIUM PROJECT WHICH WOULD DELIVER MORE ELABORATE MOBILE SERVICES TO PEOPLE IN CARS AND BOATS HAS TAKEN THREE YEARS TO GET STARTED AT A COST OF 34 BILLION AND NORMAL MAINTENANCE INITIALLY WILL COST AN ADDITIONAL 2 BILLION THE MCCAWGATES PROJECT IS MORE THAN 10 TIMES THE SIZE OF IRIDIUM YET IT MUST COMPETE FOR CAPITAL AND CUSTOMERS WITH STILL OTHER NETWORKS NUMEROUS GOVERNMENTS ARE ALREADY MAJOR FINANCIAL BACKERS OF SUCH GLOBAL SYSTEMS AS INTELSAT AND INMARSAT SEVERAL HAVE SIGNED UP AS IRIDIUM BACKERS THIS SOUNDS SHAKY SHAKY SHAKY SAID BARRY GOODSTADT DIRECTOR OF WIRELESS INDUSTRY CONSULTING AT ELECTRONIC DATA SYSTEMS CORP OWNED BY GENERAL MOTORS CORP WITH MOTOROLA AND OTHERS ALREADY IN THE GAME HOW MANY PLAYERS CAN PLAY WHILE THERE IS A GLOBAL NICHE MARKET FOR NEW SERVICES IN RURAL REGIONS HE ADDED WHO IN THE BUSH WANTS TO DO THIS WHAT'S A CUSTOMER IN BANGLADESH GOING TO PAY THEY'LL NEED THESE REVENUES TO SUPPORT THE NETWORK BUT THE NEW PARTNERSHIP IN A FILING WITH THE FEDERAL COMMUNICATIONS COMMISSION COULD GET CONSIDERABLE POLITICAL AND FINANCIAL BACKING FROM MCCAW'S SOONTOBE OWNER AMERICAN TELEPHONE & TELEGRAPH CO AT THIS POINT IT'S PRIMARILY A CONCEPT AN AT&T SPOKESMAN SAID BUT IT'S THE KIND OF GLEAMINTHEEYE VENTURE THAT SOME ENTREPRENEURS LIKE CRAIG MCCAW CAN BRING OFF SUCCESSFULLY WE'LL BE DELIGHTED TO BENEFIT FINANCIALLY FROM IT IN ADDITION THE PARTNERS ARE SHREWDLY POSITIONING THE SYSTEM AS A WAY TO MITIGATE THE PUBLIC POLICY DILEMMA OF HOW TO LET EVERYONE DRIVE THE SOCALLED INFORMATION SUPERHIGHWAY I CAN HEAR IT NOW SAID A SKEPTICAL IRA BRODSKY PRESIDENT OF DATACOMM RESEARCH CO A WILMETTE ILL RESEARCH FIRM SPECIALIZING IN WIRELESS TECHNOLOGY THIS WILL BE A GRAND SCHEME CONCEIVED IN THE INTERESTS OF ALL OF US RATHER THAN HAVE ALL THOSE DIFFERENT PLAYERS OUT THERE BUILDING DIFFERENT SYSTEMS WHY NOT JUST HAVE ONE GIANT SYSTEM RUSSELL DAGGATT TELEDESIC'S PRESIDENT AND AN EXPERT IN INTERNATIONAL LAW COUNTERED THAT MESSRS MCCAW AND GATES HAVE NO INTENTION TO MAINTAIN CONTROL TELEDESIC'S GOALS WILL REQUIRE A BROAD COOPERATIVE EFFORT BEYOND THE ABILITY OF ANY INDIVIDUALS OR COUNTRY TO DOMINATE MESSRS MCCAW AND GATES EACH OWN SLIGHTLY MORE THAN 30 OF TELEDESIC THE REMAINDER IS HELD BY MCCAW CELLULAR 28 AND KINSHIP VENTURES II 10 A LOS ANGELES VENTURECAPITAL FUND RUN BY EDWARD TUCK WHO FOUNDED THE MAGELLAN GLOBALPOSITIONING SATELLITE SYSTEM NONE OF THE PRINCIPALS COULD BE REACHED FOR COMMENT BUT A MCCAW SPOKESMAN SAID MESSRS MCCAW AND GATES HAVE EACH COMMITTED ONLY A COUPLE OF MILLION DOLLARS SO FAR TO THE PROJECT OBVIOUSLY THE BULK OF THE BILLIONS IN FUNDING IS GOING TO HAVE TO COME FROM MANUFACTURERS AND GOVERNMENTS THAT WILL ACTUALLY BUILD AND RUN THE SYSTEM THE SPOKESMAN ADDED A SPOKESWOMAN FOR MR GATES SAID HE EXPECTS HIS INVESTMENT TO DECLINE OVER TIME AS LARGER INVESTORS ARE BROUGHT IN TO FUND THE ACTUAL PROJECT A DRAFT OF TELEDESIC'S PROPOSAL TO THE FCC WHICH MUST APPROVE THE PROJECT AND SET ASIDE AIRWAVE SPACE FOR IT SHOWS THE SYSTEM BORROWS HEAVILY FROM THE NOWDEFUNCT STRATEGIC DEFENSE INITIATIVE STARWARS PROGRAM DRAWING FROM A STAR WARS CONCEPT KNOWN AS BRILLIANT PEBBLES THE NEW SYSTEM WOULD EMPLOY 840 REFRIGERATORSIZED SATELLITES THEY WOULD OPERATE IN THE LITTLEUSED VERY HIGH FREQUENCY KABAND AT 20 BILLION TO 30 BILLION GIGAHERTZ OR BILLIONS OF CYCLES A SECOND EACH BIRD WOULD ORBIT 435 MILES ABOVE THE EARTH COMPARED WITH 23000MILEHIGH ORBITS OF GEOSTATIONARY SATELLITES ACTING AS HIGHSPEED SWITCHES IN THE SKY EACH SATELLITE WOULD BE EQUIPPED WITH NEW ASYNCHRONOUS TRANSFER MODE OR ATM TECHNOLOGY THEY WOULD TAKE TRAFFIC FROM PHONEBOOKSIZED RECEIVERS AND TINY WAFERSIZED ANTENNAS IN HOMES AND BUSINESSES AND FEED IT TO HUNDREDS OF GROUND STATIONS CONNECTED TO THE REGULAR TELEPHONE NETWORKS AROUND THE WORLD THE MAIN VIRTUE OF THE LOW ORBIT OF THE SATELLITES IS THAT SIGNALS ARE SO MUCH STRONGER SO USERS CAN ACCESS THE SYSTEM WITH HANDHELD DEVICES AND RECEIVE DATA ALMOST ANYWHERE EVEN INSIDE BUILDINGS THE ORBIT ALSO WOULD CUT OUT TRANSMISSION PROBLEMS SUCH AS THE PHONECALL DELAYS OF CONVENTIONAL SATELLITE TRANSMISSION OUR CONVERSATIONS WOULD TRAVEL ABOUT 2000 MILES TOTAL COMPARED WITH 90000 MILES IN A REGULAR SATELLITECONNECTED CALL MR DAGGATT SAID BUT IT WOULD CREATE A MUCH COSTLIER PROBLEM KNOWN AS SATELLITE CHURN LOWORBIT SYSTEMS ARE CHEAPER TO LAUNCH AND REQUIRE LESS POWER BUT THEIR SATELLITES WILL FALL OUT OF ORBIT AT FAR GREATER RATES THAN GEOSTATIONARY SATELLITES IF TELEDESIC LOSES 10 OF ITS SATELLITES A YEAR THEY'LL HAVE TO PUT UP 84 SATELLITES A YEAR JUST TO MAINTAIN REGULAR SERVICE SAID EDS'S MR GOODSTADT THAT'S GOING TO BE TREMENDOUSLY EXPENSIVE WHILE THE TELEDESIC BACKERS SAY THAT THE PLAN HAS RECEIVED A DESIGN AUDIT FROM THE FAMED JET PROPULSION LABORATORY IN CALIFORNIA MACGREGOR REID TECHNICAL EXECUTIVE ASSISTANT TO JPL'S DIRECTOR HARDLY ISSUES AN ENDORSEMENT HE SAID TELEDESIC FACES TOUGH TECHNICAL PROBLEMS THAT STILL NEED TO BE WORKED OUT THE SUBSTANTIAL SWITCHING IN THE SKY STILL NEEDS DETAILED DESIGN AND ANALYSIS HE ADDED AND THE VENTURE MUST OVERCOME PROBLEMS WITH KABAND RADIO TRANSMISSIONS WHICH ARE ABSORBED AND SCATTERED BY RAINDROPS TO A GREATER EXTENT THAN CONVENTIONAL SATELLITE TRANSMISSION THE MCCAWGATES PAIRING MIGHT SEEM AN UNLIKELY PARTNERSHIP BUT MR MCCAW HAD ASKED HIS FRIEND TO INVEST IN THE PROJECT A COUPLE OF YEARS AGO MCCAW'S AND TELEDESIC'S KIRKLAND WASH BASE IS ONLY ABOUT A MILE FROM MICROSOFT IN REDMOND WASH MR GATES IS A ZEALOUS BOOSTER OF THE SOCALLED INFORMATION HIGHWAY SPENDING FULLY HALF HIS TIME TRYING TO POSITION MICROSOFT FOR THE MULTIMEDIA REVOLUTION NOW UNDER WAY STILL DATACOMM'S MR BRODSKY SAID HE IS SURPRISED THAT MR GATES WOULD GET INVOLVED IN SOMETHING HE CAN'T CONTROL WITH CRAIG MCCAW HE SAID GATES HAS ANOTHER MAJOR PLAYER WHO HAS A LOT TO SAY ABOUT THE FUTURE OF COMMUNICATIONS G CHRISTIAN HILL AND G PASCAL ZACHARY IN SAN FRANCISCO CONTRIBUTED TO THIS ARTICLE 9403210014 940321 WHAT'S NEWS WORLDWIDE THE US READIED MILITARY AND DIPLOMATIC STEPS TO PUNISH NORTH KOREA SECRETARY OF STATE CHRISTOPHER SAID THE US PLANS TO SEEK A SECURITY COUNCIL RESOLUTION CALLING ON NORTH KOREA TO PERMIT INSPECTIONS OF SUSPECTED NUCLEAR ARMS FACILITIES THE US PLAN APPARENTLY IS TO LAY THE GROUNDWORK FOR A RESOLUTION ON TRADE SANCTIONS AND IN THE MEANTIME TO PERSUADE CHINA TO ABSTAIN IN THE VOTE PRESIDENT CLINTON SAID THERE APPEARED TO BE SOME SUPPORT IN PYONGYANG FOR ALLOWING THE INSPECTIONS THE US IS EXPECTED TO ANNOUNCE THE REVIVAL OF JOINT MILITARY EXERCISES WITH SOUTH KOREA AND IS PREPARING TO SHIP PATRIOT ANTIMISSILE BATTERIES ISRAEL OFFERED TO SPEED UP WITHDRAWAL OF ITS TROOPS FROM PARTS OF THE WEST BANK AND GAZA STRIP IF TALKS WITH THE PLO THIS WEEK LEAD TO THE REVIVAL OF STALLED PEACE NEGOTIATIONS ISRAELI OFFICIALS SAID ISRAELI RADIO SAID FOREIGN MINISTER PERES COULD MEET WITH PLO LEADER ARAFAT THIS WEEK IF PRELIMINARY TALKS TAKING PLACE IN TUNISIA SUCCEED A UN RELIEF CONVOY REACHED THE BOSNIAN CITY OF MAGLAJ WHICH HAS BEEN CUT OFF FROM FOOD SHIPMENTS SINCE OCTOBER THE MOSTLY MUSLIM CITY OF 103000 HAS BEEN LARGELY REDUCED TO RUBBLE IN A NINEMONTH SIEGE BY BOSNIAN SERBS IN SARAJEVO A SOCCER MATCH DREW A CROWD OF 20000 THE LARGEST GATHERING SINCE A SERB SIEGE BEGAN TWO YEARS AGO ZULU LEADERS REJECTED CHARGES BY A SOUTH AFRICAN JUDICIAL PANEL THAT THEY COLLUDED WITH POLICE FOR YEARS IN MOUNTING TERROR ATTACKS AGAINST THE AFRICAN NATIONAL CONGRESS IN AN EFFORT TO STALL POLITICAL REFORMS ARMED ZULUS OCCUPIED A STADIUM YESTERDAY TO KEEP THE ANC FROM CAMPAIGNING IN KWAZULU AHEAD OF NEXT MONTH'S ELECTIONS SALVADORANS VOTED IN THE FIRST PRESIDENTIAL ELECTIONS SINCE A 12YEAR CIVIL WAR ENDED IN 1992 THE ELECTIONS WHICH ALSO INCLUDE BALLOTING FOR THE NATIONAL ASSEMBLY ARE THE FIRST IN WHICH LEFTIST REBELS WHO FOUGHT THE GOVERNMENT IN THE WAR ARE PARTICIPATING IF NO PRESIDENTIAL CANDIDATE RECEIVES A MAJORITY A RUNOFF WILL BE HELD NEXT MONTH THE ROSE LAW FIRM HAS DECIDED TO FILE AN ETHICS COMPLAINT OVER UNDOCUMENTED EXPENSES INCURRED BY FORMER ASSOCIATE ATTORNEY GENERAL HUBBELL A LAWYER FAMILIAR WITH THE FIRM'S INQUIRY SAYS THE DISPUTE INVOLVING ABOUT 100000 IN EXPENSES LED TO HUBBELL'S RESIGNATION FROM THE JUSTICE DEPARTMENT LAST WEEK A STRONG AFTERSHOCK TO JANUARY'S EARTHQUAKE STRUCK LOS ANGELES SHAKING THE METROPOLITAN AREA FOR ABOUT 30 SECONDS THERE WERE NO REPORTS OF DEATHS OR MAJOR DAMAGE FROM THE AFTERSHOCK WHICH MEASURED 53 ON THE RICHTER SCALE INSURANCE CLAIMS FROM THE EARLIER QUAKE ARE NOW EXPECTED TO TOTAL ABOUT 4 BILLION SENATE FINANCE PANEL MEMBERS BEGAN TWO DAYS OF MEETINGS ON HEALTHCARE REFORM AT A VIRGINIA CONFERENCE CENTER A FORUM INTENDED TO ALLOW MEMBERS OF THE KEY COMMITTEE TO OUTLINE POSITIONS BEFORE LEGISLATIVE WORK GETS UNDER WAY GOP LEADERS SIGNALED THEY WILL RESIST REQUIRING EMPLOYERS TO PAY TO INSURE WORKERS TWO ITALIAN JOURNALISTS WERE KILLED IN MOGADISHU WHEN GUNMEN APPARENTLY TRIED TO HIJACK THE TRUCK IN WHICH THEY WERE RIDING THE JOURNALISTS WERE IN THE SOMALI CAPITAL TO COVER THE WITHDRAWAL OF THE ITALIAN TROOPS WHO ARE PART OF THE UN PEACEKEEPING FORCE THERE ALL REMAINING ITALIAN AND US PEACEKEEPERS ARE SCHEDULED TO DEPART THIS WEEK CAMBODIA'S GOVERNMENT SAID IT CAPTURED THE HEADQUARTERS OF THE KHMER ROUGE BUT THE GUERRILLA GROUP DENIED IT HAD BEEN DRIVEN OUT OF ITS PAILIN BASE NEAR THE THAI BORDER LOSS OF THE STRONGHOLD WOULD BE A MAJOR BLOW TO THE REBELS WHO HAVE LOST THOUSANDS OF FIGHTERS IN A GOVERNMENT PUSH TO CONSOLIDATE ITS CONTROL FOLLOWING ELECTIONS LAST YEAR THE LEADERS OF JAPAN AND CHINA MET IN A SIGN OF A WARMING TREND BETWEEN THE TWO BIG ASIAN ECONOMIES EVEN AS THE RELATIONS OF EACH WITH THE US HAVE HIT ROCKY PATCHES PREMIER HOSOKAWA'S MEETINGS IN BEIJING TOUCHED ON HUMAN RIGHTS AND JAPAN EXPRESSED CONCERN OVER CHINA'S GROWING MILITARY SPENDING GERMAN VOTERS HANDED CHANCELLOR KOHL'S GOVERNING COALITION ANOTHER SETBACK IN LOCAL ELECTIONS IN SCHLESWIGHOLSTEIN FURTHER DIMMING HIS PROSPECTS FOR FALL FEDERAL ELECTIONS IN THE VOTING LEFTWING GREENS WON DOUBLE THE NUMBER OF VOTES THEY GOT IN 1990 9403210013 940321 PRUDENTIAL UNIT 3 EMPLOYEES ORDERED TO PAY INVESTOR GROUP 27 MILLION BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC AND THREE EMPLOYEES LAST MONTH WERE ORDERED TO PAY A GROUP OF INVESTORS 27 MILLION IN DAMAGES AND COSTS PARTLY TIED TO BETS ON A FAILED 1987 TAKEOVER THE AWARD MADE BY A NEW YORK STOCK EXCHANGE ARBITRATION PANEL CENTERED ON STOCK TRADES LINKED TO CS FIRST BOSTON CORP'S NEVERCOMPLETED OFFER TO BUY ALLEGHENY INTERNATIONAL INC AS WELL AS INVESTMENTS IN GOVERNMENT AGENCY BONDS THE ARBITRATION AWARD IS UNRELATED TO PRUDENTIAL'S RECENT PROBLEMS INVOLVING SALES OF LIMITED PARTNERSHIPS THAT LATER SOURED PRUDENTIAL HAS PAID NEARLY 765 MILLION TO REIMBURSE INVESTORS WHO CLAIMED THEY WERE DEFRAUDED INTO BUYING THE PARTNERSHIPS NEARLY HALF OF THAT 330 MILLION HAS GONE TO A REPARATION FUND IN THE ARBITRATION CASE A GROUP OF MEXICO CITY INVESTORS CLAIMED THE INVESTMENTS WERE UNSUITABLY RISKY SAID THEIR MIAMI ATTORNEY ANDREW C HALL PRUDENTIAL MAINTAINS THE INVESTORS WERE SOPHISTICATED AND HAD PREVIOUS EXPERIENCE TRADING TAKEOVER STOCKS A SPOKESMAN SAID THE PRUDENTIAL SPOKESMAN SAID THE NEW YORK SECURITIES CONCERN A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA OF NEWARK NJ IS CONSIDERING A COURT APPEAL THE AWARD IS THE LARGEST ARBITRATION AWARD MADE TO A CUSTOMER AGAINST PRUDENTIAL SINCE SUCH DATA BECAME PUBLICLY AVAILABLE IN 1989 ACCORDING TO STATISTICS COMPILED BY THE SECURITIES ARBITRATION COMMENTATOR A MAPLEWOOD NJ NEWSLETTER THE INVESTMENTS WERE RECOMMENDED BY FRED BERENS A TOPPRODUCING BROKER AT PRUDENTIAL WHO HEADS A SEVENPERSON GROUP IN THE FIRM'S MIAMI BRANCH CLAUDIA SOLORZANO AND MARISELA BLANDON TWO OTHER BROKERS WHO WORK WITH MR BERENS WERE ALSO FOUND BY THE ARBITRATORS TO BE LIABLE FOR THE AWARD NONE OF THE INDIVIDUALS COULD BE REACHED FOR COMMENT MR HALL THE INVESTORS' ATTORNEY SAID MR BERENS THE PRUDENTIAL BROKER HAD RECOMMENDED THAT THE INVESTORS BUY SHARES OF ALLEGHENY AFTER A UNIT OF FIRST BOSTON OFFERED TO ACQUIRE IT FOR 500 MILLION IN A SOCALLED RISK ARBITRAGE PLAY THE RISK IN SUCH AN INVESTMENT IS THAT AN ACQUISITION WILL FALL THROUGH AS HAPPENED TO THE DEAL FOR THE PITTSBURGH APPLIANCE MAKER ALLEGHENY'S STOCK COLLAPSED AND THE COMPANY LATER FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION PRUDENTIAL THOUGH CLAIMED THAT THE INVESTORS UNDERSTOOD THE RISKS WE ARE TALKING ABOUT VERY WEALTHY VERY SOPHISTICATED VERY EXPERIENCED TRADERS SAID WILLIAM AHEARN THE SPOKESMAN HE SAID THEY HAD MADE PROFITABLE BETS THROUGH PRUDENTIAL ON ABOUT 10 OTHER TAKEOVER STOCKS THEY UNDERSTOOD FULLY THE PROGRAM THEY WERE INVOLVED IN IT WORKED IN EVERY INSTANCE BUT ONE IT HAD NOTHING TO DO WITH THE BROKER INVOLVED MR AHEARN SAID THE OTHER INVESTMENT INVOLVED SHORTTERM BETS ON BONDS ISSUED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION OR GINNIE MAES MR HALL SAID THE BONDS TUMBLED IN VALUE OVER A TWOWEEK PERIOD IN APRIL 1987 ALONG WITH THE OVERALL BOND MARKET THE INVESTORS INCLUDED ALBERTO DANA JAIME DANA MARCOS DANA SALVADOR ROFFE ALFREDO ROFFE ELDON CHOMER BELLA CHOMER JACOBO COHEN JAIME COHEN AND SARAH COHEN MR HALL DESCRIBED THEM AS WEALTHY ENTREPRENUERS BUT DENIED THEY HAD THE TRAINING NECESSARY FOR RISKY STOCK TRADING HE SAID THE INVESTORS HADN'T TRADED AS A GROUP MEANWHILE ANOTHER CASE INVOLVING PRUDENTIAL MR BERENS AND A WEALTHY LATIN AMERICAN INVESTOR IS PENDING IN US DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK BOLIVIAN INVESTOR MAX SALZMANN AND HIS FAMILY ARE SEEKING MORE THAN 15 MILLION FOR TRADES IN GINNIE MAES ALLEGHENY INTERNATIONAL STOCK AND SHARES OF ANOTHER 1980S TAKEOVER PLAY FRUEHAUF CORP DAVID BAMBERGER A NEW YORK ATTORNEY FOR MR SALZMANN SAID JUDGE KEVIN T DUFFY IS TO CONSIDER A MOTION FOR DISMISSAL FROM PRUDENTIAL HE EXPECTS A RULING FROM THE JUDGE WITHIN THE NEXT SEVERAL MONTHS A PRUDENTIAL SPOKESMAN HAD NO IMMEDIATE COMMENT ON THE SALZMANN CASE 9403210012 940321 WHO'S NEWS MODAMI DISMISSES CHAIRMAN ALLEGING IMPROPER FINANCIAL TIES TO SUPPLIER BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL BOCA RATON FLA MODAMI SERVICES INC SAID ITS BOARD DISMISSED ITS CHAIRMAN AND CHIEF EXECUTIVE MICHAEL SALIT ALLEGING THAT HE HAD IMPROPER FINANCIAL TIES TO A COMPANY SUPPLIER MODAMI SAID IT BEGAN AN INTERNAL INVESTIGATION LAST YEAR INTO QUESTIONABLE PURCHASING ORDERS AS A RESULT THE COMPANY SAID IT DISCOVERED THAT DR SALIT STARTING IN 1992 HAD RECEIVED STOCK IN AN ISRAELI SUPPLIER FOR MODAMI WHICH MAKES YOGURT AND SANDWICHES DISTRIBUTES PRIVATELABEL GROCERIES AND SELLS EYEWEAR MODAMI'S OUTSIDE COUNSEL ELLIOTT BARNETT ALSO SAID THAT THE INVESTIGATION DISCLOSED THAT 13 MILLION OF COMPANY FUNDS IN 1992 WENT INTO FLORIDA BANK ACCOUNTS CONNECTED TO DR SALIT AND TO THE ISRAELI SUPPLIER NUTRIX LTD MR BARNETT SAID THERE ISN'T A FULL ACCOUNTING FOR THESE FUNDS DR SALIT REACHED AT HIS HOME SAID THE ALLEGATIONS ARE ABSOLUTELY NOT TRUE I FOUNDED THAT COMPANY I NURTURED IT AND I WOULD NEVER DO ANYTHING TO HURT IT HE REFERRED QUESTIONS TO HIS ATTORNEY HENRY HANDLER WHO SAID THAT DR SALIT A 50YEAROLD PHYSICIAN REJECTED STOCK OFFERS FROM NUTRIX MR HANDLER SAID DR SALIT ALSO WASN'T IN CONTROL OF THE NUTRIX ACCOUNTS IN FLORIDA MODAMI BASED IN BOCA RATON FLA ALSO ALLEGES THAT ITS FORMER CHIEF FINANCIAL OFFICER DAVID LOBEL WHO LEFT THE COMPANY LAST JULY HELD NUTRIX STOCK AND WAS CONNECTED TO THE DEPOSIT OF MODAMI FUNDS INTO THE FLORIDA ACCOUNTS MR LOBEL 51 YEARS OLD COULDN'T BE REACHED FOR COMMENT MODAMI OFFICIALS REPORTED THEIR ALLEGATIONS TO THE SECURITIES AND EXCHANGE COMMISSION LAST THURSDAY THE AGENCY ACCORDING TO THE COMPANY SAID IT WOULD BE TAKING NO IMMEDIATE ACTION MODAMI SAID THE INVESTIGATION HASN'T AFFECTED CURRENT OPERATIONS THE COMPANY'S BOARD NAMED PAUL KRAVITZ 63 AS CHIEF EXECUTIVE MR KRAVITZ HAD SERVED AS CHIEF FINANCIAL OFFICER SINCE MR LOBEL LEFT THE COMPANY AND WAS ACTING AS PRESIDENT AND CHIEF OPERATING OFFICER HE WILL REMAIN PRESIDENT JOHN BOONE 57 WHO HAD SERVED AS VICE PRESIDENT OF OPERATIONS WAS NAMED CHIEF OPERATING OFFICER JUSTIN DIMACCHIA 50 WHO HAD SERVED AS VICE PRESIDENT OF FINANCE WAS NAMED CHIEF FINANCIAL OFFICER IN ITS MOST RECENT FISCAL YEAR ENDED AUG 31 1993 MODAMI REPORTED SALES OF 350710 WITH A LOSS OF 3986596 MR KRAVITZ SAID THE COMPANY EXPECTS TO REPORT 3 MILLION IN SALES FOR THE FISCAL SECOND QUARTER ENDED FEB 28 AND AN UNSPECIFIED LOSS WHICH WILL BE SMALLER THAN THE YEAR EARLIER IN THE YEARAGO QUARTER THE COMPANY POSTED A LOSS OF 930062 ON REVENUE OF 106404 LOOKING AHEAD MODAMI SAID IT EXPECTS TO BENEFIT FROM ADDITIONAL REVENUE PROVIDED BY TWO SANDWICH MANUFACTURERS IT ACQUIRED IN THE PAST HALF YEAR MR KRAVITZ SAID FOR THE ENTIRE FISCAL YEAR HE ADDED THE COMPANY EXPECTS TO REPORT SALES OF ABOUT 26 MILLION 9403210011 940321 BIG STOCKS FAIL TO SHARE IN FEAST LESSER ISSUES ENJOY ABREAST OF THE MARKET LACK OF A SURGE AMID GOOD SIGNS PUZZLES INVESTORS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE BUZZ WORD ON WALL STREET THESE DAYS IS BEWILDERMENT STOCKS AND BONDS LAST WEEK PLAYED ALL SORTS OF STRANGE GAMES WHEN BOND PRICES ROSE STOCKS FELL AND WHEN BONDS PLUMMETED STOCKS RALLIED WITNESS THE LATE 30POINT SURGE IN THE DOW JONES INDUSTRIAL AVERAGE FRIDAY ON HUGE VOLUME EVEN AS THE TREASURY'S 30YEAR BOND PLUNGED NEARLY 7/8 POINT EVEN MORE CONFUSING HOWEVER IS THE OVERALL WEAKNESS OF BIG STOCKS IN THE PAST SEVEN WEEKS SMALL STOCKS ARE HITTING NEW HIGHS BUT BIG ONES ARE LANGUISHING EVEN THOUGH THE ECONOMY IS STILL CHUGGING ALONG WITH SUBDUED INFLATION AND CORPORATE EARNINGS STILL LOOK PROMISING OF COURSE INTEREST RATES HAVE RISEN BUT BY MOST MEASURES THEY HAD DECLINED TOO MUCH AND EVEN AFTER THE RECENT SURGE ARE STILL RELATIVELY LOW MORE AND MORE PEOPLE ARE SAYING THEY'RE PUZZLED BY WHAT'S HAPPENING TO THE STOCK MARKET SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY THEY JUST DON'T UNDERSTAND IT MR JOHNSON WORRIES THAT INVESTORS' CONFUSION COULD LEAD TO A BEAR MARKET WHAT'S WORSE AND SO PUZZLING IS THAT THE BEAR MARKET COULD OCCUR FOR NO APPARENT REASON HE ARGUES THOUGH SUCH A PROSPECT SEEMS STRANGE TO MANY ANALYSTS AND INVESTORS MR JOHNSON SAYS HE HAS FOUND A PRECEDENT HE SEES DISTURBING PARALLELS WITH 1962 WHEN STOCK PRICES SLUMPED 273 IT WAS THE SECOND YEAR OF PRESIDENT JOHN F KENNEDY'S ADMINISTRATION JUST AS IT IS NOW THE SECOND YEAR OF PRESIDENT CLINTON'S TERM BOTH DEMOCRATS CHALLENGED BIG BUSINESS AND PRESENTED WIDERANGING EVEN UTOPIAN AGENDAS IN THEIR SECOND STATE OF THE UNION ADDRESSES THEN AS NOW THE YEAR BEGAN ON AN UPBEAT NOTE WITH THE STOCK MARKET HITTING NEW HIGHS THE ECONOMY EXPANDING AND CONSUMER CONFIDENCE GROWING BUT SOON INTO THE YEAR THE STOCK MARKET HIT THE SKIDS MR JOHNSON THINKS HARD ECONOMIC DATA PLAYED LESS OF A ROLE IN DEBILITATING THE STOCK MARKET THAN DID MORE ELUSIVE FACTORS SUCH AS CORPORATE AMERICA'S GROWING WARINESS OF PRESIDENT KENNEDY A SIMILAR SCENARIO MAY BE UNFOLDING TODAY HE SAYS AMONG THE EXAMPLES OF THE BATTLE BETWEEN BIG BUSINESS AND THE GOVERNMENT MR JOHNSON CITES THE CLINTON ADMINISTRATION'S HEAVY HAND IN TRYING TO REFORM AND REGULATE THE HEALTHCARE INDUSTRY AND THE RECENT FEDERAL COMMUNICATIONS COMMISSION RULING REQUIRING A 7 REDUCTION IN CABLETELEVISION RATES THE STOCK MARKET DECLINE IN 1962 WAS JUST AS PUZZLING TO INVESTORS THEN AS THE CURRENT WOES ARE TO TODAY'S PARTICIPANTS AS THE 1962 PRICE SLIDE BEGAN THIS NEWSPAPER CARRIED REPORTS BY ABREAST OF THE MARKET WRITER OLIVER J GINGOLD THAT COULD VERY EASILY DESCRIBE TODAY'S CONDITIONS ON MARCH 24 1962 MR GINGOLD WROTE MOST CORPORATE NEWS IS OPTIMISTIC HOWEVER CAUTION IS APPARENT IN THE STREET AND AMONG INVESTORS A WEEK LATER HE REPORTED THERE HAS BEEN NO BUSINESS NEWS TO INDUCE AN IMPORTANT VOLUME OF SELLING YET THE MARKET SAGGED THROUGHOUT LAST WEEK ANALYSTS ARE AT A LOSS TO EXPLAIN THIS ACTION THE NEXT WEEK MR GINGOLD WROTE IN THE RECENT DECLINING STOCK MARKET ANALYSTS HAVE FOUND IT DIFFICULT TO PINPOINT THE REASONS FOR THE SPELLS OF SELLING A NUMBER OF ANALYSTS ARE EXPRESSING DOUBTS ABOUT THE BUSINESS TREND BUT BUSINESS ITSELF IS REPORTING A COMFORTABLE SITUATION IN MOST CASES WITH EXPECTATION OF BETTER THINGS TO COME INDEED BUSINESS CONDITIONS CONTINUED TO IMPROVE IN 1962 THOUGH STOCK PRICES SUSTAINED A SIGNIFICANT AND PUZZLING DECLINE MR JOHNSON SAYS HISTORIANS MAY LOOK BACK ON 1994 AND CONCLUDE THAT YES THE ECONOMIC CLIMATE WAS JUST FINE BUT STOCK PRICES FELL FOR A VARIETY OF HARDTOPINPOINT QUALITATIVE FACTORS AMONG THEM A CLASH BETWEEN BIG BUSINESS AND THE GOVERNMENT AND A LOSS OF CONFIDENCE AMONG INVESTORS IF I DIDN'T HAVE 1962 I'D BE SITTING HERE SCRATCHING MY HEAD TOTALLY BEWILDERED MR JOHNSON CONCEDES INVESTORS ALSO ARE PUZZLED BY THE PERFORMANCE OF THE MAJOR STOCK SECTORS BULL MARKETS USUALLY LIFT ALL STOCK GROUPS BUT THIS BULL MARKET HAS PRODUCED STRIKING DIVERGENCES AMONG THE GROUPS PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES NOTES THAT WHILE THE OVERALL MARKET CLIMBED IN THE PAST TWO YEARS LED BY ECONOMICALLY SENSITIVE STOCKS CONSUMER GROWTH STOCKS HAVE SUFFERED THEIR OWN DEVASTATING BEAR MARKET IT'S VERY PUZZLING TO GROWTHSTOCK MANAGERS TO SEE THE DOW INDUSTRIALS AND NASDAQ COMPOSITE CLIMB WHILE GROWTH STOCKS GO TO NEW LOWS MR CANELO SAYS HE EXPLAINS THAT ANYONE CONFUSED BY THE SHAKEOUT IN CONSUMER STOCKS HAS FAILED TO RECOGNIZE A FUNDAMENTAL LONGTERM ADJUSTMENT UNDER WAY IN THE MARKET HE SAYS THAT CONSUMER STOCKS BECAME GROSSLY OVERVALUED BY THE END OF THE 1980S AND ARE EXPERIENCING A NECESSARY CORRECTION WHILE THAT PROCESS HAPPENS IT LOOKS VERY STRANGE MR CANELO SAYS ALSO CONFOUNDING MARKET OBSERVERS IS THAT SOME ECONOMIC TRENDS AREN'T UNFOLDING ACCORDING TO THE USUAL PATTERNS OF A RECOVERY CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST AT MERRILL LYNCH POINTS OUT THAT FOR INSTANCE GROWTH OF PRIVATE CREDIT IN THIS CYCLE HAS BEEN SUBSTANTIALLY BELOW THAT OF TYPICAL RECOVERIES THE SLOW PACE OF CREDIT GROWTH EASES INFLATIONARY PRESSURES BUT ALSO LEAVES SOME ANALYSTS A LITTLE BEWILDERED THERE ARE A LOT OF DIFFERENT BEHAVIOR PATTERNS WHICH MAY BE ADDING TO SOME OF THE PUZZLEMENT MR CLOUGH SAYS BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY CONTENDS THE STOCK MARKET ISN'T REALLY ALL THAT PUZZLING BUT HE CONCEDES THAT INVESTORS ARE VEXED BY MANY UNCERTAINTIES CHIEF AMONG THEM THE GROWING LIST OF COMPANIES TRYING TO GO PUBLIC EVEN AS THE APPETITE FOR NEW STOCKS WANES ALSO WORRISOME ARE GROWING TRADE FRICTIONS AND THE EXPANDING WHITEWATER INVESTIGATION HE EXPECTS LONGTERM INTEREST RATES TO EXCEED 7 SPARKING FURTHER DECLINES IN STOCK PRICES THE CORRECTION WILL TAKE PRICES DOWN 10 FROM THEIR HIGH BY JULY MR WIEN PREDICTS TO HAVE PEOPLE PUZZLED THAT'S A PERFECT ENVIRONMENT FOR A FURTHER CORRECTION HE SAYS PEOPLE WILL SAY I BETTER PROTECT MYSELF AND THE MARKET WILL PERFORM BADLY THE DOW JONES INDUSTRIAL AVERAGE SURGED IN LATE TRADING AMID VERY HEAVY VOLUME TIED TO THE QUARTERLY EXPIRATION OF FUTURES AND OPTIONS THE INDUSTRIAL AVERAGE CLIMBED 3051 POINTS TO 389565 STANDARD & POOR'S 500STOCK INDEX ROSE 016 TO 47106 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 024 TO 26135 THE NASDAQ COMPOSITE INDEX EDGED UP 008 TO 80393 FOR A SECOND CONSECUTIVE RECORD VOLUME ON THE NEW YORK STOCK EXCHANGE SOARED TO 446362000 SHARES FROM 303883000 THURSDAY IT WAS THE THIRDLARGEST SINGLE DAY OF TRADING IN THE EXCHANGE'S HISTORY TRADERS SAID SEVERAL WAVES OF COMPUTERGUIDED BUY PROGRAMS KICKED IN NEAR THE CLOSE TO DRIVE PRICES HIGHER FOR THE WEEK THE INDUSTRIAL AVERAGE GAINED 3295 POINTS OR 085 THE S&P 500 ROSE 462 POINTS OR 099 AND THE NASDAQ COMPOSITE CLIMBED 1473 POINTS OR 187 WORLDWIDE STOCK PRICES FELL FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 063 TO 11585 TRANSPORTATION STOCKS FELL WITH THE DOW JONES TRANSPORTATION AVERAGE SINKING 1479 TO 173274 AMR LOST 1 1/4 TO 61 3/4 AND UAL FELL 1 1/2 TO 127 5/8 CONRAIL LOST 1 3/8 TO 59 3/4 THE WALL STREET JOURNAL REPORTED THAT SURGING FREIGHT SHIPMENTS AGGRAVATED BY THE HARSH WINTER WEATHER HAVE STRAINED THE COMPANY'S CAPACITY LEADING TO DISRUPTIONS AND HIGHER COSTS FOR RAIL SHIPPERS NORTHWEST AIRLINES' 20MILLIONSHARE OFFERING ON THE NASDAQ STOCK MARKET WAS UNCHANGED FROM ITS OFFER PRICE OF 13 IN ITS FIRST DAY OF TRADING SOME ANALYSTS SAID THEY BELIEVED THE OFFERING'S UNDERWRITERS MAY HAVE BEEN SUPPORTING THE PRICE YELLOW CORP SLID 3 7/8 TO 26 1/8 ON NASDAQ THE PROVIDER OF FREIGHT TRANSPORTATION EXPECTS TO REPORT A FIRSTQUARTER LOSS WIDER THAN THE SIX CENTS A SHARE POSTED A YEAR AGO YELLOW CITED SEVERE WINTER WEATHER AT THE BEGINNING OF THE YEAR AND THE LOS ANGELES EARTHQUAKE IN JANUARY AMONG TECHNOLOGY STOCKS ADOBE SYSTEMS DECLINED 1 3/8 TO 29 1/2 ON NASDAQ THE SOFTWARE CONCERN SAID THURSDAY ITS FIRSTQUARTER EARNINGS FELL TO 32 CENTS A SHARE FROM 34 CENTS A YEAR EARLIER INVESTORS CONTINUED TO SHOW SUPPORT FOR COMPUWARE'S PLANNED MERGER WITH UNIFACE HOLDING BIDDING THE STOCK TO A 52WEEK HIGH FOR A SECOND STRAIGHT DAY SHARES OF THE FARMINGTON HILLS MICHBASED COMPANY JUMPED 4 TO 46 3/4 AS SOUNDVIEW FINANCIAL GROUP ANALYST JAMES C MENDELSON RAISED HIS FISCAL 1995 EARNINGS ESTIMATE MICRON TECHNOLOGY ROSE 5 1/4 TO 88 1/2 THE COMPANY SAID THURSDAY ITS FISCAL SECONDQUARTER NET INCOME ROSE TO 209 A SHARE FROM 22 CENTS A YEAR EARLIER SYNDICATOR KING WORLD PRODUCTIONS JUMPED 2 1/8 TO 39 THE WALL STREET JOURNAL REPORTED THAT THE COMPANY AGREED WITH OPRAH WINFREY TO CONTINUE DISTRIBUTING HER TOPRATED TALK SHOW THROUGH THE 19992000 TELEVISION SEASON AND TO MAKE HER A MAJOR SHAREHOLDER IN RETURN SINGER CLIMBED 2 1/2 TO 34 3/4 THE COMPANY SAID IT ACQUIRED FOUR MORE EXCLUDED OPERATIONS FROM SEMITECH GLOBAL FOR A TOTAL OF 275 MILLION SEE RELATED ARTICLE SMALL STOCK FOCUS SOLID EARNINGS TAKEOVER FEVER SPARK LITTLE GUYS' WSJ MARCH 21 1994 9403210010 940321 LEISURE & ARTS BUSINESS BOOKSHELF WAR STORIES FROM THE HIGHTECH FRONT BY MICHAEL GIANTURCO PROFITS OF SCIENCE THE AMERICAN MARRIAGE OF BUSINESS AND TECHNOLOGY BASIC 272 PAGES 23 RECOUNTS SOME OF HIGH TECHNOLOGY'S GREATEST WAR STORIES IN A SERIES OF COMPACT NARRATIVES WHAT MAKES THESE CORPORATE CASE HISTORIES FASCINATING IS NOT SIMPLY THE SPECTACULAR PROFITS OF SCIENCE OF THE TITLE BUT THE TENDENCY OF TECHNOLOGIES TO SUCCEED MAGNIFICENTLY JUST BEFORE FAILING THE BUSINESS TRAJECTORIES OF TECHNOLOGY PRODUCTS TELEVISIONS COMPUTERS VCRS PACKAGED SOFTWARE HAVE GONE OFF LIKE A SUCCESSION OF ROMAN CANDLES IT SEEMS THE EXPLOSION OF HIGHTECHNOLOGY SUCCESS CAN OFTEN OBLITERATE THE VERY BUSINESS THAT CREATES IT THE EXPLOSIONS OCCUR NOT IN THE LABORATORY BUT IN THE MARKETPLACE IN ROBERT TEITELMAN'S MODEL THE TECHNOLOGY BUSINESS PROCEEDS IN CYCLES AND THE PASSAGE OF SUCCESS INTO FAILURE USUALLY THROUGH COMMODITIZATION WOULD APPEAR TO BE PART OF THE NORMAL COURSE OF THINGS HE USES HIS CYCLIC CONCEPT AS AN ORGANIZING PRINCIPLE IN PRESENTING CASE STUDIES OF CORPORATIONS WITH RESONANT NAMES FROM THE HISTORY OF HIGH TECH SUCH AS AT&T RCA RAYTHEON DU PONT PHILCO SYNTEX TEXAS INSTRUMENTS FAIRCHILD SEMICONDUCTOR INTEL GENENTECH AND MICROSOFT HE ALSO TELLS THE STORIES OF LONGGONE PLAYERS WITH UNFAMILIAR NAMES SUCH AS TRANSITRON AND AMELCO PRECISELY BECAUSE THEY HAVE DISAPPEARED THESE OBSCURE TECHNOLOGY COMPANIES ALSO OFFER LESSONS ONE WAY TO SEE WHERE A SPECIFIC COMPANY OR INDUSTRY IS IN MR TEITELMAN'S CYCLE IS TO NOTICE THE SIZE OF THE GAP BETWEEN ITS SCIENCE AND ITS TECHNOLOGY SUCH A GAP CAN BE SEEN BETWEEN BIOLOGY AND MEDICINE FOR EXAMPLE OR BETWEEN SEMICONDUCTOR PHYSICS AND SEMICONDUCTOR CHIPMAKING WHEN A SCIENCE IS NEW OR DIFFICULT TO TRANSLATE INTO MARKETABLE PRODUCTS THE GAP BETWEEN SCIENCE AND TECHNOLOGY IS VERY WIDE AT THIS EARLY POINT IN THE CYCLE BIG COMPANIES ARE FAVORED BECAUSE OF THEIR CAPITAL STRENGTH AND INHOUSE RESEARCH AS IT BECOMES EASIER TO DEVELOP PRODUCTS THE TECHNOLOGY BECOMES ACCESSIBLE TO SMALLER MORE NIMBLE ENTREPRENEURIAL FIRMS WHO TYPICALLY RUN AWAY WITH IT RUNAWAY SUCCESS MAGNETIZES THE ATTENTION OF RIVALS COMPETITION HEATS UP PRICES COLLAPSE AND THE EXCITEMENT ENDS IN COMMODITIZATION SHAKEOUTS AND THE SURVIVAL OF A FEW FORMERLY ENTREPRENEURIAL FIRMS NOW GROWN BIG THESE SURVIVORS WILL HAVE PROTECTED THEMSELVES IN SOME WAY BY ECONOMIES OF SCALE BY MARKETING SKILL BY CAPITAL MUSCLE OR BY PROPRIETARY TECHNICAL STANDARDS AND PATENTS MR TEITELMAN MAKES IT A POINT TO SEPARATE THE HISTORY OF THE TECHNOLOGIES FROM THE HISTORY OF THEIR HYPE HE HAS A WONDERFUL EAR FOR BOMBAST AND OVERBLOWN PRONOUNCEMENTS OF TECHNOLOGY REVOLUTIONS ARE SALTED THROUGH THE BOOK HE QUOTES RADIO CORP OF AMERICA'S DAVID SARNOFF FOR EXAMPLE INTRODUCING TELEVISION AT THE NEW YORK WORLD'S FAIR IN 1939 AS AN ART THAT SHINES LIKE A TORCH OF HOPE IN A TROUBLED WORLD A CREATIVE FORCE WHICH WE MUST LEARN TO UTILIZE FOR ALL MANKIND THEN SARNOFF CONCLUDED HIS SPEECH BY SWITCHING ON A BOXING MATCH THE NOTION IS NOW COMMONPLACE THAT IN HIGHTECHNOLOGY INDUSTRIES THE LARGE CORPORATION HAS PERMANENTLY GIVEN WAY TO SMALL EFFICIENT AND HEROIC ENTREPRENEURIAL ENTERPRISES BUT MR TEITELMAN ARGUES THAT IN FACT NOTHING HAS CHANGED IN THESE INDUSTRIES THE PENDULUM ALWAYS SWINGS THE OTHER WAY SOONER OR LATER OVER THE PAST HALFCENTURY MANY CORPORATE GOLIATHS HAVE FALLEN BEFORE THE MORE ADROIT ENTREPRENEURIAL DAVIDS YES BUT THIS NEED NOT MEAN TECHNOLOGY ENTERPRISE HAS PASSED THROUGH THE THRESHOLD TO A PERMANENT NEW AGE OF LITTLE GUYS LATER IN THE CYCLE THE DAVIDS BECOME GOLIATHS THIS IS ONE INTERPRETATION OF WHAT HAS HAPPENED TO COMPANIES SUCH AS APPLE COMPUTER MICROSOFT AND INTEL BUT YOU DO NOT HAVE TO AGREE WITH THE CYCLIC CONCEPT TO ENJOY THIS BOOK FROM HIS CASE HISTORIES OF POSTWAR TECHNOLOGY COMPANIES YOU CAN DRAW YOUR OWN LESSONS MR TEITELMAN'S PARENTHETICAL REMARKS ARE A TREAT FOR EXAMPLE HE NOTES THAT ADMIRAL CORP'S SUCCESS WAS ONE SIGN OF WHAT REALLY MATTERED IN TELEVISION NOT INNOVATIVE TECHNOLOGY WHICH IN ITS GROSS FEATURES WAS FIXED BUT THE PERCEPTION OF TECHNOLOGY WHILE RCA BOASTED ITS SETS HAD FEWER TUBES AN ENGINEERED ADVANTAGE ADMIRAL WAS GLEEFULLY SELLING A DYNAMAGIC RADIO AND A MAGIC MIRROR TELEVISION WITH GOLDPLATED CONTROL KNOBS AND AN ONOFF JEWEL LIGHT ADMIRAL ALSO UNDERPRICED ITS COMPETITION AND SO BEGAN THE TELEVISIONMANUFACTURING INDUSTRY'S SLIDE INTO COMMODITIZATION THE BOOK IS FLAWED BY CARELESS TECHNICAL WRITING CYCLOTRONS WHICH WEIGH AS MUCH AS 100 TONS AND DO NOT MOVE ARE CHARACTERIZED AS WHIRLING DNA THE WORLD'S MOST FAMOUS NUCLEIC ACID IS PRESENTED AS A PROTEIN BUT NEVER MIND THIS IS NOT A BOOK ABOUT HOW TECHNOLOGIES WORK IT IS ABOUT HOW TECHNOLOGY BUSINESSES HAVE WORKED AND FAILED TO WORK AND THEN IN SOME INSTANCES GONE ON TO PROSPER IT IS A GOOD RESOURCE AND A PLEASURE TO READ MR GIANTURCO IS PRESIDENT OF THE PRINCETON PORTFOLIOS AN ASSETMANAGEMENT SERVICE 9403210009 940321 IRS DROPS TAX CASE AGAINST EXECUTIVES AT MONTGOMERY WARD CHICAGO THE INTERNAL REVENUE SERVICE DROPPED A TAX CASE AGAINST EXECUTIVES OF MONTGOMERY WARD & CO INCLUDING ITS CHAIRMAN THAT STEMMED FROM THE 1988 MANAGEMENTLED BUYOUT OF THE RETAILER THE TAX AGENCY DIDN'T EXPLAIN ITS DECISION TO DROP THE CASE IN WHICH IT SOUGHT 149 MILLION IN BACK TAXES BUT THE IRS ACTION QUIETS CONCERNS THAT THE CASE HAD RAISED ABOUT LEVERAGED BUYOUTS THE IRS HAD ALLEGED THAT CHAIRMAN BERNARD F BRENNAN AND 51 OTHER PARTICIPANTS PAID LESS THAN FAIR MARKET VALUE FOR THEIR SHARES THE EXECUTIVES PAID 1 A SHARE FOR A 50 INTEREST IN THE RETAIL CONCERN AS PART OF THE 38 BILLION BUYOUT TRANSACTION IN JUNE 1992 THE IRS WHICH CLAIMED THAT THE REAL VALUE OF THE SHARES AT THE TIME OF THE TRANSACTION WAS 83 A SHARE SOUGHT TO COMPEL THE EXECUTIVES TO PAY TAXES AND INTEREST ON THE DIFFERENCE WHICH IT VIEWED AS COMPENSATION GENERAL ELECTRIC CAPITAL CORP A UNIT OF GENERAL ELECTRIC CO WHICH PURCHASED THE REMAINING 50 OF MONTGOMERY WARD IN THE TRANSACTION WAS NOT INVOLVED IN THE TAX ISSUE BUT THE FACT THAT GENERAL ELECTRIC PAID THE SAME AMOUNT FOR ITS SHARES AS DID THE MONTGOMERY WARD OFFICIALS GAVE WEIGHT TO THE EXECUTIVES' CASE SAID STUART SEIGEL MR BRENNAN'S ATTORNEY THERE WAS CONCERN THAT THIS ISSUE COULD BE EXTENDED TO OTHER LBO SITUATIONS IF THE GOVERNMENT PREVAILED IN THIS CASE MR SEIGEL SAID 9403210008 940321 ALLEN GROUP SEES GAINS IN 1994 SALES BUT HIGHER TAX RATE WILL HURT PROFIT BY RALPH E WINTER SPECIAL TO THE WALL STREET JOURNAL BEACHWOOD OHIO ALLEN GROUP INC EXPECTS SIZABLE GAINS IN SALES AND PRETAX PROFIT THIS YEAR BUT A SHARPLY HIGHER TAX RATE WILL RESULT IN LOWER EARNINGS FROM CONTINUING OPERATIONS SAID ROBERT G PAUL PRESIDENT AND CHIEF EXECUTIVE OFFICER BECAUSE THE PRODUCER OF MOBILECOMMUNICATIONS EQUIPMENT AND TRUCK PARTS EXHAUSTED ITS TAXLOSS CARRYFORWARDS IN 1993 ITS COMBINED FEDERAL AND STATE INCOMETAX RATE WILL RISE TO ABOUT 39 FOR 1994 FROM 11 LAST YEAR SAID ROBERT A YOUDELMAN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR PAUL SAID IN AN INTERVIEW THAT 1994 NET INCOME COULD SLIP BELOW 1 A SHARE BUT HE DECLINED TO MAKE A SPECIFIC FORECAST IN 1993 ALLEN GROUP HAD EARNINGS FROM CONTINUING OPERATIONS OF 295 MILLION OR 119 A SHARE ON SALES OF 280 MILLION NET INCOME AFTER LOSSES FROM DISCONTINUED OPERATIONS AND A GAIN FROM THE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING FOR INCOME TAXES WAS 241 MILLION OR 96 CENTS A SHARE IF OUR PRETAX INCOME ROSE BY 29 WHICH WAS THE RATE OF GAIN FROM CONTINUING OPERATIONS ACHIEVED LAST YEAR OUR EARNINGS PER SHARE WOULD BE 97 CENTS HE SAID MR PAUL SAID HE ISN'T FORECASTING THAT RESULT AND DECLINED TO MAKE A SPECIFIC FORECAST OF PRETAX PROFIT AND SALES FOR 1994 BUT HE SAID THE FIGURES ILLUSTRATE THE SHARP IMPACT OF THE TAX RATE CHANGE HE SAID THE EARNINGS DECLINE IS LIKELY TO BE SHARP IN THE FIRST QUARTER ORDINARILY A WEAK EARNINGS PERIOD IN THE 1993 FIRST QUARTER ALLEN GROUP EARNED 29 CENTS A SHARE FROM CONTINUING OPERATIONS AND HAD NET INCOME OF 31 CENTS A SHARE AFTER GAINS AND LOSSES ON SALES OF 66 MILLION MR PAUL SAID DEMAND FOR THE COMPANY'S TRUCK PARTS IS STRONG AND CELLULARTELEPHONE PRODUCTS SALES ARE BOOMING OVERSEAS DOMESTIC SALES OF MOBILECOMMUNICATIONS PRODUCTS ARE EXPECTED TO BE FLAT FOR THE SECOND CONSECUTIVE YEAR HE SAID BECAUSE THE CELLULARTELEPHONE NETWORK IS IN PLACE IN THE US MR PAUL SAID TWO MAJOR NEW MARKETS WILL PRODUCE SHARPLY INCREASED SALES AND EARNINGS IN 1995 AND 1996 ALLEN GROUP EXPECTS TO SELL A SIGNIFICANT VOLUME OF PRODUCTS FOR THE PROPOSED PERSONALCOMMUNICATIONS SYSTEMS BY THE 1995 SECOND HALF HE SAID AND THE COMPANY'S VEHICLEEMISSIONS TESTING DIVISION WILL TURN PROFITABLE NEXT YEAR AS NEW EMISSIONSTESTING STATIONS BEGIN OPERATING MR PAUL SAID THE COMPANY BENEFITED FROM A TREMENDOUS GROWTH AROUND THE GLOBE IN MOBILE TELECOMMUNICATIONS LAST YEAR OVERSEAS SALES ACCOUNTED FOR 31 OF ALLEN GROUP'S TELECOMMUNICATIONSEQUIPMENT SALES MR PAUL SAID AND THAT SHARE WILL CONTINUE TO GROW US SALES OF TELECOMMUNICATIONS EQUIPMENT WILL BEGIN RISING AGAIN IN 1995 AS CONSTRUCTION BEGINS ON BASE STATIONS FOR PERSONALCOMMUNICATIONS SYSTEMS HE SAID HOWEVER PRODUCTDEVELOPMENT SPENDING THIS YEAR WILL RISE HE SAID TO 10 MILLION FROM 86 MILLION IN 1993 MR PAUL SAID TRUCK AND OFFROAD EQUIPMENT SALES ROSE 12 IN 1993 AND OPERATING PROFIT MORE THAN DOUBLED ALLEN GROUP'S RECENTLY LAUNCHED AUTOMOTIVEEMISSIONS TESTING OPERATION CONTRIBUTED LITTLE REVENUE IN 1993 MR PAUL SAID AND HAD A PRETAX LOSS OF 15 MILLION IT WILL LOSE ABOUT 2 MILLION THIS YEAR HE SAID BUT WILL TURN PROFITABLE IN 1995 BASED ON CURRENT CONTRACTS 9403210006 940321 GLOBAL VIEW FOR THE DISAFFECTED ITALY'S CHILDREN'S CRUSADE BY GEORGE MELLOAN SOME SCRIPTERS SEE ITALY'S POSTCOLD WAR ELECTION NEXT WEEKEND AS EQUAL IN IMPORTANCE TO THE POSTWORLD WAR II 1948 VOTE THEN THE CHRISTIAN DEMOCRATS DEFEATED THE COMMUNISTS TO DOMINATE ITALIAN POLITICS FOR THE NEXT 45 YEARS BUT UP UNTIL LAST MONTH THE MOMENTOUS LABEL WAS BEING APPLIED BECAUSE OF A BELIEF THAT THE FORMER COMMUNISTS NOW FLYING A NEW PENNANT WOULD FINALLY WIN POWER WITH THE CHRISTIAN DEMOCRATS AND SOCIALISTS DISCREDITED BY ONE OF THE MOST PERVASIVE ANTICORRUPTION PURGES IN ANY COUNTRY'S HISTORY IT SEEMED THAT THE WELLORGANIZED DEMOCRATIC PARTY OF THE LEFT PDS IN ITALIAN WAS UNSTOPPABLE NOW HOWEVER MOMENTOUS HAS A NEW CONNOTATION A FEW WEEKS AGO THE PDS WAS RUNNING AGAINST A SMUDGE OF PARTIES OF THE RIGHT TODAY IT IS FACING A FORMIDABLE ALTHOUGH RATHER STRANGE COALITION AT THE CENTER IS A NEW POLITICAL CREATION CALLED FORZA ITALIA LITERALLY GO FOR IT ITALY FI HAS FIELDED 267 CANDIDATES ALL WITH ONE REMARKABLE QUALIFICATION NO PREVIOUS INVOLVEMENT IN ITALIAN POLITICS THIS ASSEMBLAGE OF NONPOLITICIANS WADING INTO ONE OF THE WORLD'S MOST TREACHEROUS POLITICAL JUNGLES IS REMINDFUL OF THE CHILDREN'S CRUSADES BUT FORZA ITALIA BEARS NO RESEMBLANCE OTHERWISE SINCE ITS DEBUT EARLY LAST MONTH IT HAS FOLDED THE SEPARATIST NORTHERN LEAGUE OF UMBERTO BOSSI AND THE SOUTH'S NATIONAL ALLIANCE OF GIANFRANCO FINI INTO ITS COALITION CREATING A RIGHTIST FREEDOM ALLIANCE IF OPINION POLLS ARE ANY INDICATION FORZA ITALIA'S CREATOR SILVIO BERLUSCONI HAS AT LEAST AN OUTSIDE CHANCE TO BECOME ITALY'S NEXT PRIME MINISTER WHAT'S GOING ON HERE WELL QUITE A NUMBER OF THINGS AT ONCE WHICH IS NOT UNUSUAL IN ITALY MR BERLUSCONI A SELFMADE BUSINESS TYCOON OBVIOUSLY SPOTTED A MARKET NICHE THAT WAS IN FACT A GAPING HOLE LEFT BY THE DEMISE OF THE CHRISTIAN DEMOCRATS AND SOCIALISTS THE NORTHERN LEAGUE HAD STRENGTH IN THE NORTH AND THE NATIONAL ALLIANCE IN THE SOUTH BUT THERE WAS NOTHING LEFT IN THE CENTER EITHER POLITICALLY OR GEOGRAPHICALLY TO STOP THE PDS MACHINE SO HE MOVED INTO THE VACUUM EMPLOYING HIS MARKETING SKILLS AND HIS OWNERSHIP OF THREE TV STATIONS SEVERAL NEWSPAPERS AND AN ADVERTISING AGENCY TO BUILD SUPPORT HE SPOTTED SOMETHING ELSE AS WELL THE FACT THAT WHATEVER CONFIDENCE ITALIANS EVER HAD IN THEIR POLITICAL CLASS HAS EVAPORATED THAT IS LESS OF A PROBLEM FOR THE PDS THAN IT WAS FOR THE CHRISTIAN DEMOCRATS AND SOCIALISTS THE COMMUNISTS HAD ONLY BRIEF TASTES OF POWER SHARING OVER 45 YEARS AND HENCE ARE RELATIVELY ALTHOUGH NOT ENTIRELY FREE OF SCANDAL BUT SCANDAL IS EVEN LESS OF A PROBLEM FOR FORZA ITALIA WHICH WASN'T EVEN A PARTY THREE MONTHS AGO IT WAS TO EMPHASIZE THIS POINT THAT MR BERLUSCONI ASSEMBLED HIS NONPOLITICIANS HE AUDITIONED CANDIDATES IN MUCH THE WAY HE SELECTS PLAYERS FOR HIS CHAMPIONSHIP AC MILAN FOOTBALL CLUB PICKING PEOPLE WITH DEMONSTRABLE AUDIENCE APPEAL USING THE MODEL OF FOOTBALL FAN CLUBS HE ORGANIZED 12000 LOCAL POLITICAL CLUBS TO BACK HIS CANDIDATES MR BERLUSCONI CLEARLY IS READING THE MOOD OF ITALY HE ALSO MAY HAVE DISCOVERED A PUBLIC SENTIMENT THAT NOW PERVADES THE DEMOCRATIC WORLD IN COUNTRY AFTER COUNTRY THERE IS A MOOD OF SKEPTICISM TOWARD THE POLITICAL CLASS THE DENIZENS OF THE WASHINGTON BELTWAY ARE WATCHING IN DISMAY AS THE CLINTONS DAN ROSTENKOWSKI ET AL LOSE CREDIBILITY BY THE HOUR THE LONG GRIP ON POWER OF JAPAN'S LIBERAL DEMOCRATIC PARTY HAS FINALLY BEEN LOOSENED AND PERHAPS BROKEN HELMUT KOHL IN GERMANY FACES AN UPHILL FIGHT TO WIN REELECTION IN THE FALL IF JOHN MAJOR IS TWOFACED AS HIS MANY CRITICS CHARGE IT PROBABLY IS BECAUSE HE SPENDS SO MUCH TIME TRYING TO WARD OFF ATTACKS FROM BOTH THE BRITISH LEFT AND RIGHT SOME PEOPLE FIND THIS PHENOMENON DISQUIETING A PRELUDE TO A LURCH INTO AN ERA OF WEAK NATIONAL LEADERSHIP OR EVEN ANARCHY THAT MIGHT ENCOURAGE THE ENEMIES OF THE DEMOCRATIC NATIONS TO MAKE STRONGER EFFORTS TO APPROPRIATE THEIR WEALTH AND POWER OTHERS TAKE AN OPPOSITE VIEW THAT IT IS A NECESSARY CLEANSING PROCESS AN OPENING UP OF SLUDGED ENGINES THAT HAVE RUN UNATTENDED FOR TOO LONG MOST LIKELY HOWEVER NEITHER ANARCHY NOR PURITY WILL BE THE END RESULT RATHER IT IS MORE LIKELY A CASE OF POLITICAL SYSTEMS GOING THROUGH A PROCESS OF SHUMPETERIAN CREATIVE DESTRUCTION AS NEW KNOWHOW GAINS ASCENDANCY THE EVOLUTION OF ITALY'S PDS IS INSTRUCTIVE ONLY A FEW YEARS AGO IT WAS WESTERN EUROPE'S LARGEST COMMUNIST PARTY WITH A STRONG ALTHOUGH USUALLY MUTED ALLEGIANCE TOWARD MOSCOW IT WAS THE PLACE WHERE ITALIANS WENT TO REGISTER A STRONG BUT MOSTLY INEFFECTUAL PROTEST VOTE AGAINST THE CLUB OF BOODLERS THAT PASSED FOR A PARLIAMENT BUT AFTER THE COLLAPSE OF THE SOVIET EMPIRE THE ITALIAN COMMUNISTS CHANGED THEIR PARTY'S NAME THEIR LEADER ACHILLE OCHETTO BEGAN TO SOUND LIKE A BORNAGAIN MILTON FRIEDMAN HE PROMISES TO CONTINUE PRIVATIZATION OF STATE INDUSTRIES AND HAS BEEN URGING INVESTORS NOT TO FEAR A PDS GOVERNMENT IN SHORT THE PDS KNOWS THAT COMMUNISM OR EVEN 1975VINTAGE SOCIALISM NO LONGER SELLS MR OCHETTO HOWEVER HAS HAD TO PULL INTO HIS COALITION SOME LESS REASSURING ELEMENTS THERE ARE THE GREENS WITH A DECIDEDLY ANTIBUSINESS COLORATION AND WORST OF ALL REFONDAZIONE A PARTY OF UNRECONSTRUCTED COMMUNISTS MR BERLUSCONI HAS HIS COALITION PROBLEMS TOO THE NORTHERN LEAGUE STARTED LIFE AS THE LOMBARD LEAGUE WITH A CAMPAIGN TO SPLIT THE PROSPEROUS ITALIAN NORTH AWAY FROM THE IMPOVERISHED AND CORRUPT SOUTH THAT PLAYED WELL FOR AWHILE IN THE NORTH BUT HAS BEGUN TO LOSE STEAM THE NATIONAL ALLIANCE HAS GAINED SOME POPULARITY IN THE SOUTH BUT REMAINS TYPECAST AS A NEOFASCIST PARTY DESPITE MR FINI'S PROTESTATIONS THAT HE HAS NO INTEREST IN RESURRECTING MUSSOLINI MR BERLUSCONI EVEN THOUGH DISTRUSTED BY MANY ITALIANS AS A GLIB FINANCIAL BUCCANEER SEEMS BETTER ATTUNED TO THE TIMES THAN MOST OF HIS OPPONENTS HE SURROUNDED HIMSELF WITH FIRSTRATE ECONOMIC ADVISERS FOR ONE THING HE WOULD TAKE THE GOVERNMENT OUT OF HEALTH CARE WHICH NEARLY ALL ITALIANS AGREE IS A MESS HE WOULD REDUCE THE TOP INCOME TAX BRACKET TO 30 FROM 50 TO WIN REVENUES FROM HIGH EARNERS WHO NOW AVOID OR EVADE TAXES HE WOULD REDUCE THE NUMBER OF DIFFERENT TAXES ITALIANS PAY TO 20 FROM 200 IN FOREIGN POLICY HE STYLES HIMSELF AS A GOOD FRIEND OF THE US AND SUPPORTER OF NATO ITALIANS ARE NOT NATURAL OPTIMISTS WHERE POLITICS ARE CONCERNED EVEN WHEN THERE ARE FRESH WINDS BLOWING BUT ONE THING IS CERTAIN NEXT WEEKEND'S ITALIAN ELECTION IS THE END OF ONE ERA AND THE BEGINNING OF ANOTHER WHICHEVER WAY IT GOES 9403210005 940321 ENTERTAINMENT + TECHNOLOGY A SPECIAL REPORT ALTERED STATES BRINGING IT HOME A LOOK AT HOW INTERACTIVITY HAS CHANGED AND NOT CHANGED THE CURRIER FAMILY OF ANAHEIM BY FREDERICK ROSE ANAHEIM CALIF AT THE CURRIER HOUSEHOLD LIKE MOST OTHERS THE KIDS CAN BICKER ABOUT ALMOST ANYTHING TONIGHT'S DEBATE IS OVER WHO WILL USE A COMPUTER PROGRAM CALLED UNDERSEA ADVENTURE I'M THE ONE WHO WANTS TO BE THE MARINE BIOLOGIST SO I SHOULD GET TO USE IT 15YEAROLD COLLEEN TELLS HER BROTHER WHY SO YOU CAN BETTER UNDERSTAND YOUR SPECIES RETORTS 13YEAROLD STEVEN AS COLLEEN FLOPS IN FRONT OF A SCREEN SOON FILLED WITH THE TERRIFYING IMAGE OF A GREAT WHITE SHARK MOUTH GAPING AND DAGGERLIKE TEETH FLASHING AS IT RUSHES ANGRILY AT THE STEEL BARS OF AN UNDERWATER CAGE SOME THINGS LIKE SIBLING RIVALRY NEVER CHANGE SO TOO THE WAY PEOPLE SHAPE THE FUTURE ON THEIR OWN TURF FOR ALL THE PROMISED GLITZY FEATURES OF TOMORROW'S DIGITAL WORLD THE DARWINIAN TEST IN REAL LIFE IS SIMPLE AND SEVERE WHAT WORKS IS WHAT PEOPLE CARE ENOUGH ABOUT TO USE IN EVERYDAY LIFE IN THEIR OWN HOMES FOR NOW REGARDLESS OF WHAT THEY SAY WHEN THEY RATIONALIZE THE COST OF GETTING FULLY OUTFITTED FAMILIES WITH FANCY MULTIMEDIA COMPUTERS SEEM TO CARE MUCH MORE ABOUT THE ENTERTAINMENT PART OF THE DIGITAL WORLD THAN THE EDUCATIONAL EXPERTS POINT OUT HOWEVER THAT WITH SOME OF THE BETTER PROGRAMS ALREADY ON THE MARKET THE TWO DON'T HAVE TO BE MUTUALLY EXCLUSIVE HERE IN A NEIGHBORHOOD OF MODEST RANCH HOUSES BARELY A MILE FROM DISNEYLAND THE CURRIER FAMILY FATHER TERRY MOTHER CONNIE AND COLLEEN AND STEVEN HAVE STARTED DOWN A TRACK MILLIONS MORE MAY TRAVEL IN THE NEXT FEW YEARS THIS ISN'T PART OF CORPORATE TESTMARKETING THE CURRIERS' INTEREST IS PURELY PERSONAL UNHAMPERED BY THEORIES OF WHAT THEIR DIGITAL DOINGS SHOULD BE THE CURRIERS HAVE FOLLOWED WHIM AND FANCY MR CURRIER A TALL THIN 45YEAR OLD WITH AN EASY SMILE SAYS I THINK COMPUTERS ARE FOR ANYTHING THAT'S FUN THE FUTURE OF COURSE PROMISES TO BE FAR MORE ELABORATE BUT THE BASICS OF DIGITAL ADOLESCENCE ARE WITH US TODAY INTERACTIVE SOFTWARE OFFERS VIDEO CLIPS AND CDQUALITY STEREO SOUND ON HOME COMPUTERS COSTING LESS THAN 2000 BY THE END OF THIS YEAR SOME 36 MILLION HOUSEHOLDS WILL HAVE MULTIMEDIA COMPUTERS EQUIPPED WITH CDROM DRIVES SOUND BOARDS AND SPEAKERS SAYS DATAQUEST INC A SAN JOSE CALIF FIRM THAT TRACKS COMPUTER STATISTICS AS FOR STAYING CONNECTED MORE THAN 20 MILLION HOUSEHOLD CALLERS ALREADY LOG ON TO ONLINE COMPUTER SERVICES AND ELECTRONIC BULLETIN BOARDS AND THAT NUMBER IS EXPECTED TO LEAP 50 IN THE NEXT 12 MONTHS SAYS JACK RICKARD EDITOR AND PUBLISHER OF BOARDWATCH MAGAZINE FOR MOST HOUSEHOLDS CHANGE WILL BE EVOLUTIONARY NOT REVOLUTIONARY MANY OF THE CURRIERS' PASTIMES REMAIN FAR REMOVED FROM SILICON CHIPS AND LASER DISKS STEVEN STILL PLAYS SOCCER ON A CHAMPIONSHIP TEAM COLLEEN MOONS OVER MAGAZINES AND PUZZLES OVER ALGEBRA AND WHEN MRS CURRIER PULLS TOGETHER A REPORT FOR THE LOCAL HIGH SCHOOL BAND'S BOOSTER CLUB SHE DOES IT ON AN AGING TYPEWRITER YET COMPUTERS ARE PLAYING A GROWING ROLE IN THE CURRIER HOUSEHOLD ESPECIALLY FOR THE CHILDREN ON AVERAGE TERRY AND THE KIDS FIGURE THEY EACH SPEND TWO HOURS OR SO A DAY MORE ON WEEKENDS ON ONE OF THE FAMILY'S TWO MACHINES AND IF THE VIRTUAL FUTURE IS STILL A TAD FUZZY THE CURRIER HOME OFFERS STRONG HINTS ABOUT ITS FOCUS EVEN NOW THE CURRIER KIDS HAVE TAKEN TO HANGING OUT AT A LOCAL DIGITAL DRUGSTORE MAKING DATES WITH BOYFRIENDS AND GIRLFRIENDS THROUGH CYBERSPACE AND FROM TIME TO TIME FIGHTING OVER DAD'S COMPUTER COMPUTERS ARE IMAGINATION MACHINES FOR CHILDREN SAYS BILL GROSS PRESIDENT AND CHIEF EXECUTIVE OF KNOWLEDGE ADVENTURE INC THE LA CRESCENTA CALIF MAKER OF UNDERSEA ADVENTURE AND OTHER MULTIMEDIA SOFTWARE THEY CAN HAVE CONTROL AND WITH THE BEST SOFTWARE THEY CAN DIRECT THEIR OWN EXPLORATION VOYAGE SOON AFTER COLLEEN WRESTS PRIMACY OVER THE KEYBOARD FROM STEVEN THE OPENING SCENE OF UNDERSEA ADVENTURE GIVES WAY TO THE STEELY LOOK OF A BULKHEAD IN A SUBMARINE OUR TEENAGE CAPTAIN GUIDES THE COMPUTER MOUSE TO PUSH BUTTONS AND LEVERS AND AN AREA ON THE BULKHEAD PROJECTS A MOVIE OF DOLPHINS LEAPING JOYFULLY OUT OF THE SEA OH THEY'RE SO BEAUTIFUL COLLEEN COOS YOU JUST THINK THEY'RE CUTE HER BROTHER COUNTERS SMOOTHLY CHALLENGING HER TO THE PROGRAM'S MARINE BIOLOGY QUIZ AND SMIRKING WHEN SHE FLUBS A QUESTION COMPUTERS HAVE ALWAYS COME EASILY IN THE CURRIER HOUSEHOLD MR CURRIER GOT THE PC BUG IN THE MID1980S AND JOINED A LOCAL COMPUTER CLUB HIS FIRST MACHINE NOW THE FAMILY'S SECOND SITS IN HIS SON'S BEDROOM A YEAR AND A HALF AGO THEY BOUGHT A FAR FASTER MACHINE WITH AN INTEL 486 PROCESSOR AND LAST CHRISTMAS THE FAMILY GAVE DAD A CDROM DRIVE TO PLAY THE DISKS THAT LOOK LIKE MUSIC CDS BUT CARRY VAST AMOUNTS OF AUDIO VIDEO AND OTHER INFORMATION FOR COMPUTERS NONE OF THIS IS CHEAP THE FAMILY ESTIMATES THAT IT SPENDS 500 A YEAR ON SOFTWARE THE 486 COMPUTER COST 4000 THOUGH A COMPARABLE MODEL WOULD BE MUCH CHEAPER NOW I TELL PEOPLE I COULD EASILY SPEND THAT MUCH ON A STAMP COLLECTION SAYS TERRY I JUST DON'T HAPPEN TO COLLECT STAMPS IN THE INDUSTRY JARGON THE CURRIERS ARE EARLY ADOPTERS PEOPLE WHO ENJOY NEW DEVICES AND HAVE LITTLE FEAR ABOUT USING THEM BUT THIS ISN'T AN INDULGENT HOUSE FULL OF UNUSED GIZMOS THE FAMILY'S INTERESTS ARE FOCUSED THE ONLY ABANDONED ITEM VISIBLE IS AN EARLY NINTENDO GAME MACHINE GATHERING DUST NEAR THE TELEVISION IT SEEMS PRIMITIVE THESE DAYS SAYS STEVEN WHO PREFERS THE MORE ELABORATE PROGRAMS AVAILABLE FOR HIS FATHER'S COMPUTER ONE MEMBER OF THE FAMILY HASN'T JOINED THE DIGITAL PARADE I'M NOT REALLY THAT INTERESTED MRS CURRIER ADMITS THE OTHER THREE SPEND SO MUCH TIME ON THOSE THINGS AND I HAVEN'T LEARNED MUCH OF ANYTHING ABOUT IT WHEN TERRY LEAVES THE COMPUTER ON I HAVE TO GET ONE OF THE KIDS TO TURN IT OFF LACK OF INTEREST IS SCARCELY A PROBLEM FOR THE REST OF THE FAMILY I PROBABLY SPEND TOO MUCH TIME ON THE COMPUTER MR CURRIER CONFESSES AS MUCH AS 18 HOURS A WEEK AT HOME HE FIGURES AND THAT'S AFTER HOURS WORRYING ABOUT COMPUTERIZED SCHEDULING AND PARTS INFORMATION AT FORD MOTOR CO WHERE HE WORKS MUCH OF MR CURRIER'S HOME TIME IS SPENT ON AMERICA ONLINE INC A VIENNA VA DATA SERVICE WITH MORE THAN 600000 SUBSCRIBERS WHERE HE READS SUCH PUBLICATIONS AS TIME MAGAZINE AND PC WORLD SAVING SOME ARTICLES ON HIS COMPUTER FOR LATER RETRIEVAL SOME TIME IS SPENT ON COMPUTER GAMES THEN THERE'S TIME SPENT FIDDLING WITH DRAWING PROGRAMS AND OTHER THINGS BUT INCREASINGLY MR CURRIER FINDS HE'S COMPETING WITH THE KIDS FOR TERMINAL TIME EDUCATORS HAVE HIGH HOPES THAT COMPUTERS WILL IMPROVE CHILDREN'S STUDY HABITS AT HOME BUT IF THE CURRIERS ARE TYPICAL EXAMPLE EDUCATIONAL PROGRAMS HAVE A WAY TO GO COLLEEN'S PROBLEMS WITH ALGEBRA SENT MR CURRIER TO THE COMPUTER STORE LAST YEAR FOR A PROGRAM TO HELP IT WAS A BUST COLLEEN FOUND THE LIMITED QUESTIONANDANSWER FORMAT NO MORE ENLIGHTENING THAN WHAT WAS HAPPENING ON THE TEACHER'S BLACKBOARD IT'S NO HELP JUST TO SEE THE RIGHT ANSWER THERE WITHOUT AN EXPLANATION HOW IT WAS CALCULATED COLLEEN SAYS SHE GOT AN UNCHARACTERISTIC LOW GRADE IN THE SUBJECT BROTHER STEVEN HAS TAKEN A LOOK AT THE FAMILY'S ELECTRONIC ENCYCLOPEDIA A CDROM DISK IT HAS SOME GOOD PICTURES HE SAYS OF THE PROGRAM BUT THE REFERENCE DISK HAS BEEN LYING LARGELY UNUSED THEY'LL GET AROUND TO IT MR CURRIER SAYS BONEDRY EDUCATIONAL MATERIAL IT SEEMS IS NO MORE POPULAR ON COMPUTER THAN IN BOOK FORM A LOT DEPENDS ON HOW EXPLICITLY EDUCATIONAL THE SOFTWARE IS SAYS STEWART ALSOP A LONGTIME WRITER ABOUT HOME COMPUTERS AND EDITOR IN CHIEF OF INFOWORLD A NEWSPAPER ABOUT COMPUTERS BUT PROGRAMS THAT TEACH SAY ABOUT MARINE BIOLOGY WHILE MAKING IT FUN CLEARLY HAVE A FAR BETTER CHANCE OF SUCCEEDING THAN PROGRAMS OFFERING MATH AND GRAMMAR DRILLS ELECTRONIC ENCYCLOPEDIAS HAVE BEEN ONE OF THE MAIN DRAWING CARDS BEHIND HOME PURCHASES OF COMPUTER CDROM DRIVES MANY DRIVES COME WITH AN ENCYCLOPEDIA FOR SEVERAL HUNDRED DOLLARS THE CURRIERS PAID 280 FOR THEIRS A FAMILY CAN BUY BOTH THE CDROM DRIVE AND INFORMATION IN ELECTRONIC FORM THAT WOULD COST 1000 OR MORE TO BUY ON PAPER HOWEVER ASKS JOHN MCCARTHY DIRECTOR OF TECHNOLOGY RESEARCH AT FORRESTER RESEARCH INC CONSULTANTS IN CAMBRIDGE MASS HOW OFTEN DO YOU PULL OUT THE ENCYCLOPAEDIA BRITTANICA FROM THE SHELF FAR MORE POPULAR WITH THE YOUNGEST MEMBER OF THE CURRIER HOUSEHOLD IS DOOM A GAME PROGRAM EVERY BIT AS GHOULISH AS ITS NAME IMPLIES WITH DINNER OVER AND HOMEWORK DONE STEVEN A MASTER AT SUCH THINGS MANEUVERS WITH THE COMPUTER MOUSE THROUGH THE HALLS OF WHAT APPEARS TO BE AN ANCIENT PALACE SLASHING AT VILLAINS EVERYWHERE I'LL GET THE SHOTGUN NOW THIS IS REALLY COOL HE SAYS THE SOUND OF CLASHING SWORDS FROM THE COMPUTER'S SPEAKERS GIVES WAY TO A ROAR AS A SHOTGUN'S DOUBLE BARRELS BUCK WITH THE RECOIL STEVEN HAS DISPATCHED YET ANOTHER ENEMY YOU CAN ALSO GET A CHAIN SAW AND CUT PEOPLE IN HALF HE ADDS WITH DELIGHT DISTASTEFUL AS SUCH GAMES MAY BE TO SOME ADULTS THEIR ATTRACTION IS ALL TOO PREDICTABLE ANALYSTS SAY WHAT WE'VE FOUND IS THAT PEOPLE BUY MULTIMEDIA COMPUTERS FOR THE ENCYCLOPEDIA AND EDUCATION PROGRAMS BUT OFTEN END UP PLAYING GAMES SAYS BRUCE RYON DATAQUEST'S MULTIMEDIA ANALYST COLLEEN IS TURNED OFF I HAVEN'T PLAYED DOOM AND I DON'T WANT TO SHE TELLS STEVEN ADDING THAT HE TOO SURELY MUST HAVE BETTER THINGS TO DO IN LIFE IT'S NOT LONG BEFORE COLLEEN SHOOS STEVEN TO HIS OWN ROOM AND COMPUTER FROM THE COZY SPACE FILLED WITH BOOKS AND COMPUTER PROGRAMS THAT HAS BECOME DAD'S OFFICE SETTLING DOWN ONCE AGAIN AT THE MACHINE COLLEEN DIALS IN TO HER FAVORITE PASTIME PHONING IN BY COMPUTER TO AN ELECTRONIC BULLETIN BOARD A PRIVATE OPERATION CENTERED NOT FAR AWAY HERE COLLEEN STEVEN AND MANY OF THEIR FRIENDS IN THE AREA EXCHANGE MESSAGES FOR A MONTHLY FEE OF 10 WE CALL IT CHUNKING SHE EXPLAINS AFTER THE CHUNK CHUNK CHUNK SOUND OF THE KEYBOARD FROM AN ADULT POINT OF VIEW IT'S A VIRTUAL DRUGSTORE A PLACE FOR THE KIDS TO HANG OUT GOSSIP AND GROUSE ALL FROM THE HOME COMPUTER WITH A FEW BUZZES AND BURPS COLLEEN'S COMPUTER CONNECTS TO THE BULLETIN BOARD AND THE SCREEN BECOMES A BLIZZARD OF COLORED WRITING SCROLLING IN NO LONGER THE CURRIER DAUGHTER COLLEEN IS GOOFY HER NOM DE SCREEN ON THE BULLETIN BOARD SURROUNDED BY FRIENDS INCLUDING COW EXPLODER BRISBY WATCHER AKASHA AND IRIDIUM LET THE CHATTER BEGIN DOES IT MAKE SENSE MAYBE NOT BUT IT MEETS MR CURRIER'S FUN STANDARD AND IT HAS PROVED USEFUL IN MORE WAYS THAN ONE COLLEEN HAD ABSOLUTELY NO INTEREST IN COMPUTERS UNTIL HER FRIENDS GOT HER ON THIS BOARD MR CURRIER SAYS RECALLING THAT HIS DAUGHTER USED TO TRY TO SWEETTALK HIM INTO TYPING HER SCHOOL PAPERS INTO THE WORD PROCESSOR NOW HE SAYS WE CAN'T GET HER AWAY FROM THE COMPUTER AND HER TYPING SPEED IS WONDERFUL TRUTH TO TELL THERE ARE CERTAIN ATTRACTIONS TO THIS BULLETIN BOARD FOR A 15YEAROLD AT LAST COUNT THERE WERE 230 BOYS AND 50 GIRLS SIGNED UP ON IT THAT MAKES IT A PRETTY GOOD PLACE TO BE COLLEEN SAYS WITH A LAUGH FOR THOSE TIRED OF VIRTUAL RELATIONSHIPS IT'S PERFECTLY ACCEPTABLE TO DATE FELLOW DENIZENS OF THE DIGITAL DRUGSTORE AND COLLEEN ALLOWS AS HOW SHE'S GONE OUT WITH THREE PRETTY NEAT GUYS SHE MET ON THE BOARD WHERE OLDER SISTERS GO OF COURSE YOUNGER BROTHERS EVENTUALLY TAG ALONG DIGITAL DRUGSTORES ARE NO EXCEPTION STEVEN STARTED LURKING IN CYBERSPACE LAST SUMMER IN A SINGLE DAY WITH LITTLE ELSE TO DO HE SAYS HE SPENT 14 HOURS ON THE BULLETIN BOARD TAKE OFF HOSER AS HE IS KNOWN ON THE BOARD SOON WAS WOWING THEM OUT IN COMPUTER LAND RECENTLY HE HAD HIS FIRST DATE WHICH HE HAD ARRANGED THROUGH THE BOARD WAS IT FUN OH SHE WAS ALL RIGHT MUTTERS THE MASTER OF DOOM GAZING AT HIS SHOES MR ROSE IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LOS ANGELES BUREAU 9403210004 940321 WALMART TO SETTLE DISPUTE IN MICHIGAN INVOLVING INSTORE PRICE COMPARISONS BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL WALMART STORES INC SIGNED AN AGREEMENT WITH MICHIGAN TO NOT MAKE MISLEADING PRICE COMPARISONS IN ITS WALMART AND SAM'S CLUB STORES IN THE STATE THE AGREEMENT FILED FRIDAY IN STATE COURT IN LANSING MICH STEMS FROM A STATE INVESTIGATION THAT BEGAN SIX MONTHS AGO AFTER COMPLAINTS FROM KMART CORP DAYTON HUDSON CORP'S TARGET STORES DIVISION AND MEIJER INC MICHIGAN ATTORNEY GENERAL FRANK J KELLEY SAID THE COURT FILING IN WHICH WALMART AGREED TO VARIOUS CHANGES IN THE WAY IT COMPARES ITS PRICES TO THOSE OF COMPETITORS SETTLES ALLEGED VIOLATIONS OF THE STATE'S CONSUMERPROTECTION ACT HOWEVER IN THE AGREEMENT WALMART DOESN'T ADMIT ANY GUILT DON SHINKLE A WALMART VICE PRESIDENT SAID THE COMPANY BELIEVES IT DID EVERYTHING BY THE BOOK HE ADDED THOUGH THAT WE DID LEARN SOME LESSONS AND IN THE FUTURE WE'LL BE DOUBLY SURE TO PLACE DATES AND OUR COMPETITORS' ADDRESSES ON SIGNS WE USE MR KELLEY WHO CHARACTERIZED WALMART AS EXTREMELY UNCOOPERATIVE ALSO SAID HIS OFFICE HAS BEEN IN TOUCH WITH ATTORNEYS GENERAL IN SEVERAL OTHER STATES CONSIDERING OR CONDUCTING SIMILAR INVESTIGATIONS OF WALMART INCLUDING IOWA FLORIDA AND MINNESOTA FLORIDA'S ATTORNEY GENERAL'S OFFICE COULDN'T BE REACHED LATE FRIDAY MINNESOTA'S SAID IT CAN'T COMMENT ON CONTINUING INVESTIGATIONS AND A SPOKESMAN FOR IOWA'S SAID IT ISN'T CURRENTLY CONDUCTING ANY INVESTIGATION OF WALMART'S PRICING OR ADVERTISING A SPOKESMAN FOR MR KELLEY SAID WALMART'S INSTORE ADS COMPARED PRODUCTS THAT WEREN'T THE SAME SIZES OR MODELS WITHOUT NOTING THE DIFFERENCES AND THAT THE ADS SOMETIMES INFLATED THE PRICES COMPETITORS CHARGED IN THE COURT FILING WALMART AGREED AMONG OTHER THINGS NOT TO CLAIM ITS PRICE ON AN ITEM IS LOWER WITHOUT VERIFYING THE PRICE A COMPETITOR IS CHARGING NOT TO LEAVE IN PLACE SIGNS COMPARING PRICES IF IT KNOWS THE COMPARISON ISN'T ACCURATE TO UPDATE COMPARISONS WEEKLY AND POST THE DATE ANY COMPARISON WAS MADE NOT TO COMPARE PRODUCTS THAT AREN'T THE SAME SIZE OR MODEL AND NOT TO LOWER AN ITEM'S PRICE JUST SO IT CAN CLAIM A BETTER PRICE COMPARISON WALMART AND TARGET HAVE FEUDED SINCE LAST YEAR WHEN TARGET RAN ADVERTISEMENTS AROUND THE COUNTRY ACCUSING ITS COMPETITOR OF MAKING MISLEADING PRICE COMPARISONS HEADLINES IN THE ADS READ THIS NEVER WOULD HAVE HAPPENED IF SAM WALTON WAS ALIVE WALMART DENOUNCED THE ADS AS A SMEAR CAMPAIGN SAYING THE ACCUSATIONS WERE UNFOUNDED 9403210003 940321 ECONOMY QUAKERELATED CLAIMS AGAINST INSURERS ARE NOW EXPECTED TO TOTAL 4 BILLION BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL EVEN BEFORE LOS ANGELES WAS JOLTED BY ANOTHER AFTERSHOCK YESTERDAY INSURANCE EXPERTS WERE RAISING THEIR LOSS ESTIMATES FROM THE JANUARY EARTHQUAKE TO ABOUT 4 BILLION THE AFTERSHOCK SHOOK THE AREA FOR ABOUT 30 SECONDS IN THE EARLY AFTERNOON POLICE AND FIRE OFFICIALS SAID THERE WERE NO REPORTS OF FATALITIES OR MAJOR STRUCTURAL DAMAGE TO BUILDINGS ALTHOUGH PRELIMINARY REPORTS INDICATED THAT THE AREA'S ALREADYDAMAGED HIGHWAY NETWORK EXPERIENCED SOME ADDITIONAL DAMAGE THE MAGNITUDE OF THE AFTERSHOCK WAS PUT AT ABOUT 53 ON THE RICHTER SCALE COMPARED WITH 67 FOR THE JAN 17 QUAKE THE 4 BILLION LOSS ESTIMATES WHICH ARE AT LEAST 15 BILLION HIGHER THAN THE MOST RECENT ESTIMATES ARE BASED ON LATE THURSDAY'S SURPRISE ANNOUNCEMENT BY TWENTIETH CENTURY INDUSTRIES A WOODLAND HILLS CALIF INSURER THAT ITS VOLUME OF CLAIMS ON THE CALIFORNIA QUAKE WOULD MORE THAN DOUBLE TO 325 MILLION TRADING IN THE COMPANY'S STOCK WAS HALTED BEFORE THE ANNOUNCEMENT WHEN IT RESUMED TRADING ON FRIDAY IT ENDED THE DAY DOWN 3625 OR 14 AT 2150 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TWENTIETH CENTURY SAID DAMAGE FROM THE QUAKE WAS MORE SEVERE AND WIDESPREAD THAN ORIGINALLY ESTIMATED RESULTING IN A HIGHER NUMBER OF CLAIMS THE DAMAGE INCLUDES SUCH THINGS AS CRACKS IN BUILDING FOUNDATIONS THAT WEREN'T IMMEDIATELY APPARENT BUT THAT CAN RESULT IN EXTENSIVE REPAIRS AND EVEN A BUILDING'S DEMOLITION THERE WAS NO IMMEDIATE INDICATION WHETHER YESTERDAY'S AFTERSHOCK WOULD BOOST THAT TOTAL EVEN HIGHER STILL ANALYSTS SAID TWENTIETH CENTURY'S ANNOUNCEMENT MADE IT LIKELY THAT OTHER INSURERS WOULD BOOST THEIR LOSS ESTIMATES IT'S GOING TO BE IN THE NEIGHBORHOOD OF 4 BILLION SAID JOHN SNYDER SENIOR VICE PRESIDENT FOR AM BEST CO AN INSURANCERATING AGENCY IT'S JUST LIKE IN HURRICANE ANDREW WHERE THE NUMBERS KEPT GETTING HIGHER SEAN MOONEY ECONOMIST FOR THE TRADE GROUP INSURANCE INFORMATION INSTITUTE AGREED THAT THE NUMBER WILL CLIMB EVERYTHING WE'VE HEARD FROM COMPANIES IS THAT THE NUMBER WILL GO HIGHER HE SAID A 4 BILLION LOSS WOULD APPROACH THE 42 BILLION OF CLAIMS PAID FOR HURRICANE HUGO IN 1989 THE SECONDLARGEST DISASTER IN US HISTORY BUT IT STILL WOULD BE FAR BELOW THE 165 BILLION FROM 1992'S HURRICANE ANDREW EVEN A 4 BILLION LOSS WOULD BE RELATIVELY SMALL FOR AN INDUSTRY WITH MORE THAN 163 BILLION IN CAPITAL ALTHOUGH IT WOULD FURTHER DEPRESS THE FIRSTQUARTER RESULTS OF MANY PROPERTY AND CASUALTY INSURERS THE AMERICAN INSURANCE SERVICES GROUP A TRADE ORGANIZATION AND THE OFFICIAL SCOREKEEPER FOR INSURANCE CLAIMS IN DISASTERS LAST ESTIMATED THE TOTAL FOR THE QUAKE LOSSES AT 25 BILLION THE BIGGEST TOTAL REPORTED BY A SINGLE COMPANY SO FAR IS THE 600 MILLION ANNOUNCED BY STATE FARM MUTUAL AUTOMOBILE INSURANCE CO ON FRIDAY A STATE FARM SPOKESMAN SAID THE COMPANY REMAINS COMFORTABLE WITH THAT ESTIMATE BUT HE DIDN'T RULE OUT THE POSSIBILITY OF AN INCREASE AS A RESULT OF THE HIGHERTHANEXPECTED CLAIMS TWENTIETH CENTURY EXPECTS TO TAKE A FIRSTQUARTER CHARGE OF 1617 MILLION OR 315 A SHARE IN THE YEAREARLIER PERIOD THE COMPANY REPORTED PROFIT OF 239 MILLION OR 47 CENTS A SHARE A COMPANY SPOKESMAN SAID THURSDAY THAT THE COMPANY REMAINS FINANCIALLY STRONG DESPITE THE CHARGE WHICH WILL WIPE OUT 26 OF ITS NET WORTH AT YEAR END THE COMPANY HAD CAPITAL AND SURPLUS OF 6552 MILLION THE LOSS IS THE LARGEST RELATED TO A SINGLE DISASTER IN THE COMPANY'S 36YEAR HISTORY RHONDA RUNDLE CONTRIBUTED TO THIS REPORT 9403210002 940307 LETTERS TO THE EDITOR MILLIONS MUST PERISH BECAUSE OF DDT BAN YOUR JAN 26 PAGEONE ARTICLE DESCRIBING THE PROGRESS OF GHANA MENTIONS AS ITS PROBLEMS A HORRENDOUS INFRASTRUCTURE UNDERFUNDED SCHOOLS AND MALARIA LATER RIGID STATE CONTROL AND BUREAUCRATIC COMMAND ARE IDENTIFIED AS ITS UNDERLYING PROBLEMS SO OFTEN IT IS THE NAMELESS FACELESS BUREAUCRATS WHO RECEIVE THE BLAME FOR A NATION'S ILLS IN THE CASE OF MALARIA HOWEVER WE CAN IDENTIFY AND NAME THE BUREAUCRAT WILLIAM RUCKELSHAUS THE US ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR IN THE 1970S THE TRAGEDY OF DDT INVOLVES THE MILLIONS WHO PERISH BECAUSE OF DISEASES AND FAMINE THAT IT COULD SAFELY AND EFFECTIVELY FIGHT THE TRAGEDY ALSO INVOLVES THE INSIDIOUS CONSEQUENCES OF EQUATING SUPERSTITION AND PRAGMATISM WITH TRUTH AS THE PEOPLE OF GHANA BEAR WITNESS SEE RELATED LETTER LETTERS TO THE EDITOR DDT BAN WAS BASED ON SOLID SCIENCE WSJ MARCH 21 1994 9403070073 YY94 MM03 9403210001 940321 LEISURE & ARTS THE MOBILE GUIDE PORTUGAL'S QUEEN OF ARTS BY RAYMOND SOKOLOV LISBON THE VERY FIRST DAY AFTER THIS VALIANT RAVAGED DRAMATIC CITY WAS PROCLAIMED THE CULTURAL CAPITAL OF EUROPE FOR 1994 PORTUGAL'S LEADING CULTURAL INSTITUTION KEPT ITS DOORS LOCKED TIGHT VISITORS PULLING UP TO THE MUSEUM OF ANTIQUE ART ON THE LAST SUNDAY OF FEBRUARY FOUND NO SIGN NO EXPLANATION THEIR GUIDEBOOKS HAD TOLD THEM THAT LISBON'S EQUIVALENT OF THE LOUVRE WAS OPEN ON SUNDAYS AND OFFICIAL INQUIRIES CONFIRM THAT IT SHOULD HAVE BEEN BUT IT WASN'T PERHAPS THE STAFF HAD STAYED UP TOO LATE THE NIGHT BEFORE WHEN FIREWORKS CLOWNS IN THE STREET AND A CONCERT AT THE NEWLY RENOVATED COLISEUM BY THE LONDON SYMPHONY UNDER GEORG SOLTI KICKED OFF CULTURAL CAPITALHOOD IN A BLUR OF CELEBRATION THAT LASTED UNTIL THE WEE HOURS DURING THE DAY ON THAT FINAL SATURDAY OF FEBRUARY AS THE TORCH OF ART PASSED FROM ANTWERP TO LISBON THE DOORS OF THE NATIONAL MUSEUM OF ARCHAEOLOGY HAD ALSO BEEN CLOSED IN CONTRADICTION TO POSTED HOURS INSIDE PREPARATIONS WERE UNDER WAY FOR THE CEREMONIAL OPENING OF UNDERGROUND LISBON A HISTORICAL EXHIBITION OF EXCAVATED MATERIALS THAT WILL LAST ALL YEAR AT WATER'S EDGE A FEW BLOCKS AWAY IT WAS ALSO IMPOSSIBLE TO GET INSIDE THE CITY'S MOST FAMOUS LANDMARK THE CASTLELIKE TOWER OF BELEM SCAFFOLDING RUNS UP THE SIDES ALL THE WAY TO THE TOWER TOP THE WORLD MONUMENTS FUND IS SUPPORTING A FULLSCALE RENOVATION SIMILAR REFURBISHINGS ARE ONGOING AT THE MUSEUM OF ANTIQUE ART THE MUSEUM OF CONTEMPORARY ART AND THE TILE MUSEUM FITTINGLY THE CENTRAL SQUARE SURROUNDING THE STATUE OF THE MARQUES DE POMBAL WHO REBUILT THE CITY AFTER THE EARTHQUAKE OF 1755 IS NOW A MESS OF RECONSTRUCTION PROVOKING TRAFFIC SNARLS AND THE HISTORIC DOWNTOWN STILL SHOWS MUCH DAMAGE FROM A BAD FIRE IN 1988 MOST OF THE SCAFFOLDS WILL SUPPOSEDLY BE DOWN WHEN HIGH TOURIST SEASON ARRIVES VISITORS WILL NO DOUBT BE ABLE TO PENETRATE THE MUSEUM OF ANTIQUE ART AND SEE ITS LEGENDARY COLLECTIONS OF PORTUGUESE DECORATIVE ARTS AND PAINTINGS AS WELL AS A EUROPEAN PAINTING GALLERY THAT INCLUDES WORKS BY DURER HOLBEIN ZURBARAN MEMLING VELAZQUEZ AND THE PIECE DE RESISTANCE BOSCH'S TRIPTYCH TEMPTATION OF ST ANTHONY THIS NETHERLANDISH RENAISSANCE MASTERPIECE WILL BE THE CENTER OF THE MAIN ART EXHIBITION OF LISBON 94 THE TEMPTATIONS OF BOSCH OR THE ETERNAL RETURN A PANORAMIC MUSTERING OF THE SURREAL OR THE SURPRISING AS REPRESENTED BY DURER ARCIMBOLDO GOYA MOREAU DE CHIRICO DALI MAGRITTE DUCHAMP PICABIA AND MANY OTHERS FROM MAY 19 TO AUG 31 OTHER SHOWS WILL FEATURE THE HISTORY OF FADO PORTUGAL'S MELANCHOLY NATIONAL SONG FORM AT THE COSTUME MUSEUM APRIL TO DECEMBER ORIENTAL INFLUENCE ON PORTUGUESE TILES AT THE TILE MUSEUM JULY TO OCTOBER NEAPOLITAN CERAMICS ALSO AT THE TILE MUSEUM NOVEMBER TO DECEMBER AND RELIGIOUS TRIBAL SCULPTURE OF ANGOLA MARCH TO JUNE AT THE MUSEUM OF ETHNOLOGY IN FILM THE MAJOR EVENT RUNS THROUGH JUNE 8 100 DAYS 100 FILMS PRESENTING THE BEST OF EUROPEAN CINEMA IN SEPTEMBER THE PAST 10 YEARS OF HUNGARIAN FILMMAKING WILL BE SCREENED IN A FESTIVAL DESIGNED TO SHOW THE GRADUAL DISAPPEARANCE OF THE CONCEPT OF EASTERN EUROPE IN DANCE THERE WILL BE A LINEUP OF THE USUAL SUSPECTS MERCE CUNNINGHAM PINA BAUSCH WILLIAM FORSYTHE THE LISBON STAGE WILL ALSO OFFER A RICH ARRAY OF INTERNATIONAL THEATER NOTABLY PETER STEIN'S ORESTEIA A REPRISE OF THE MOSCOW PRODUCTION JUNE 1217 AT THE BELEM CULTURAL CENTER AND TONY KUSHNER'S ANGELS IN AMERICA DATES TO BE ANNOUNCED FOR LISBONITES THESE SPECIAL EVENTS SHOULD BRIGHTEN A GRIM ECONOMIC PERIOD IN THE CAPITAL OF WESTERN EUROPE'S POOREST COUNTRY FOR VISITORS THE CONTRAST OF BATTERED OLD LISBON WITH ALL THIS BRAVE NEW CULTURE MAY SEEM STRAINED OR PROVOCATIVE BUT LISBON AT ANY TIME EVEN WITHOUT SPECIAL ATTRACTIONS PUTS PRESSURE ON THE HISTORICAL IMAGINATION IN AN URBAN CENTER OF HIGH DRAMA AND SEDUCTIVELY FADED GRACE NO CITY IN EUROPE NOT EVEN NAPLES HAS A MORE SPECTACULAR SETTING THAN THIS WESTERNMOST METROPOLIS SEVEN MAJOR HILLS THE BROAD MOUTH OF THE TAGUS THE SEA STRETCHING ON TO AMERICA AND AFRICA AND ALMOST NOWHERE A PIECE OF LEVEL GROUND THE SERIOUS FIRSTTIME TOURIST HARDLY NEEDS THE LISBON 94 SCHEDULE TO DIVERT HIMSELF THE GULBENKIAN MUSEUM WITH ITS GREAT REMBRANDTS RUBENSES MANETS DEGASES HOUDONS AND UNNUMBERED GLORIOUS CERAMICS AND RUGS FROM TURKEY AND IRAN IS WORTH THE TRIP ALL BY ITSELF THE JEWEL IN THIS CROWN HOWEVER IS THE TILE MUSEUM ANOTHER PROJECT OF OIL PLUTOCRAT CALOUSTE GULBENKIAN ORIGINALLY THE CONVENT OF THE MOTHER OF GOD THE CONVENT'S BAROQUE CHURCH IS INTACT AND THE MAIN ATTRACTION OF THE PLACE ON THE LOWER HALF OF THE WALLS ARE BLUE TILES WITH BIBLICAL AND PASTORAL SCENES ABOVE EYE LEVEL ARE MANY MANY PAINTINGS AND ELABORATELY CARVED WOOD NINE MILES AWAY IS THE ROCOCO ROYAL SUMMER PALACE AT QUELUZ WITH FORMAL TOPIARY GARDENS AND ALL THE MANY ROOMS FURNISHED TO THE NINES THE ENORMOUS KITCHEN WITH ITS GARGANTUAN MARBLE WORKTABLE IS NOW A VERY FINE AND FRIENDLY RESTAURANT COZINHA VELHA LOCAL SPECIALTIES INCLUDING DELICIOUS LAMPREYS FROM THE NEARBY MINHO RIVER IN RED WINE AS IN BORDEAUX ANYONE TOO SEDENTARY TO TRY ANY OF THIS SHOULD SIMPLY CHECK IN TO THE HOTEL DA LAPA A NEW AND DISCREETLY LUXURIOUS CONVERSION OF A HISTORIC PINK LISBON MANSION IN THE LAPA NEIGHBORHOOD AMONG EMBASSIES AND STATELY HOMES TRY CHERNE STONE BASS STUFFED WITH ACORDA VERY THICK TRADITIONAL PORTUGUESE BREADANDGARLIC SOUP IN THE ELEGANT DINING ROOM THE HOTEL'S GARDEN INCLUDES GIANT TROPICAL TREES A POOL A SILVERY VIEW OF THE TAGUS AND A WATERFALL THUNDERING OVER A BLUETILE MURAL OF THIS CAPITAL OF CULTURE AND HIDDEN SURPRISES 9403210084 940208 A RULE THAT STUNTS GROWTH BY J CARTER BEESE JR ALL EYES ARE ON THE STOCK MARKET BUT WHILE INVESTORS LOOK TO THE FED WALL STREET ANALYSTS AND THE STARS FOR GUIDANCE PERHAPS THEY SHOULD PAY SOME ATTENTION TO A SLIGHTLY LOWERPROFILE GROUP THE FINANCIAL ACCOUNTING STANDARDS BOARD OR FASB THAT'S RIGHT THE FASB WHILE THE FASB'S WORK DOESN'T SEEM AS LOFTY AS SETTING THE NATION'S MONETARY POLICY THE PRACTICAL EFFECT OF AN ACCOUNTING RULE CURRENTLY UNDER CONSIDERATION IS JUST AS SERIOUS AS FRIDAY'S RISE IN THE FEDERAL FUNDS RATE THE HIT TO INVESTORS WOULD BE JUST AS PREDICTABLE AT ISSUE ARE FASB PROPOSALS TO FORCE COMPANIES TO EXPENSE THE VALUE OF EMPLOYEE STOCK OPTIONS WHEN THE OPTIONS ARE ISSUED CRITICISM OF THIS IDEA SUBJECT TO PUBLIC HEARINGS NEXT MONTH HAS COME FROM ALL SIDES NEVERTHELESS SHAREHOLDERS AND INVESTORS MAY EVENTUALLY END UP JOINING THE FASB AS CASUALTIES IN THIS CONFLICT WHY BECAUSE THE FASB IS COMMITTED TO RENDERING ITS FINAL DECISION WITHOUT REGARD TO ANY OF THE SOCIAL ECONOMIC OR PUBLIC POLICY CONSIDERATIONS INVOLVED FOR SHAREHOLDERS AND INVESTORS THE FASB'S FAILURE TO CONSIDER THESE NONACCOUNTING FACTORS MASKS THE TRUE COST OF ITS PROPOSALS UNLESS ALL THE RELEVANT ISSUES ARE ADDRESSED WE MAY FIND OURSELVES PAYING THE PRICE FOR BLINDLY USING THE HIGHCOST ALTERNATIVE WHEN A LOWCOST SELECTION WOULD HAVE PERFORMED EQUALLY WELL SINCE ITS INCEPTION THE SECURITIES AND EXCHANGE COMMISSION HAS MAINTAINED ULTIMATE AUTHORITY OVER THE CONTENT OF CORPORATE FINANCIAL STATEMENTS IN 1973 THE SEC BEGAN LOOKING TO THE FASB TO ESTABLISH ACCOUNTING PRINCIPLES WITH THE EXPECTATION THAT THE BODY'S CONCLUSIONS WILL PROMOTE THE INTERESTS OF INVESTORS IN THE CONTEXT OF THE STOCKOPTION ACCOUNTING DEBATE PROMOTING INVESTORS' INTERESTS BOILS DOWN TO ANSWERING ONE QUESTION SHOULD THE ESTIMATED VALUE OF EMPLOYEE STOCK OPTIONS BE CHARGED AS AN EXPENSE AGAINST EARNINGS AS PROPOSED BY THE FASB OR SHOULD IT BE REFLECTED IN THE NOTES TO THE COMPANY'S FINANCIAL STATEMENTS A COMPROMISE SUGGESTED BY THE BIG SIX ACCOUNTING FIRMS THE COUNCIL OF INSTITUTIONAL INVESTORS AND THE BUSINESS ROUNDTABLE OUR FINANCIAL MARKETS OF COURSE VALUE SUBSTANCE OVER FORM WHETHER DEDUCTED FROM EARNINGS OR DISCLOSED IN A FOOTNOTE THE ESTIMATED VALUE ACCORDED TO THE OPTIONS WILL BE QUICKLY AND EFFICIENTLY ANALYZED CHECKED REESTIMATED AND ASSIGNED ITS APPROPRIATE WEIGHT AS ONLY OUR MARKETS CAN DO SO WELL ON THE OTHER HAND SHAREHOLDERS AND THE COMPANIES IN WHICH THEY INVEST CARE A GREAT DEAL ABOUT FORM AND FOR GOOD REASON THE COLLATERAL CONSEQUENCES OF THE FASB'S PROPOSALS GO FAR BEYOND THE POTENTIAL EFFECT ON STOCK PRICES THE CHARGE TO INCOME WILL BE BASED ON HIGHLY DEBATABLE ESTIMATES PRODUCED BY COMPLEX OPTIONPRICING MODELS BY TURNING A SOFT ESTIMATE INTO A HARD EXPENSE WE WILL IMMEDIATELY RAISE THE UPFRONT COST OF USING STOCK OPTIONS EVEN THOUGH THE REAL COST TO THE COMPANY THE POTENTIAL DILUTIVE EFFECT TO SHAREHOLDER EQUITY REMAINS UNCHANGED MOREOVER IN TODAY'S HOSTILE LEGAL ENVIRONMENT WHERE CLASSACTION SUITS ARE INSTANTLY FILED IF EARNINGS FALL TOO FAST RISE TOO SLOWLY OR REMAIN TOO STEADY THE FEAR OF INVITING YET MORE LITIGATION BY INCLUDING SOFT INFORMATION DIRECTLY ON INCOME STATEMENTS IS A VERY REAL CONCERN ADDITIONALLY EMPLOYEE STOCK OPTIONS ARE A UNIQUELY AMERICAN PHENOMENON THAT ALLOWS THOUSANDS OF US WORKERS TO SHARE IN THEIR COMPANIES' SUCCESS AS SUCH EMPLOYEE STOCK OPTIONS PROVIDE A DISTINCT COMPETITIVE ADVANTAGE TO US COMPANIES COMPETING GLOBALLY FOR TALENTED EMPLOYEES THE COMPANIES AND INDUSTRIES MOST HEAVILY DEPENDENT ON STOCK OPTIONS ARE ALSO CREATING THE REAL JOB GROWTH IN OUR ECONOMY IF TO AVOID ADVERSE SIDEEFFECTS US COMPANIES LIMIT THEIR USE OF STOCK OPTIONS WE ALL LOSE FACED WITH THESE ARGUMENTS THE FASB'S REBUTTAL IS SIMPLE WHEN IT COMES TO ACCOUNTING PRINCIPLES ECONOMIC CONSEQUENCES BE DAMNED THE TRUTH WILL SET INVESTORS FREE BUT THE TRUTH BE TOLD FINDING THE TRUE VALUE OF STOCK OPTIONS IS AN IMPOSSIBLE TASK AND BY USING ESTIMATES THE FASB IS NOT EMPOWERING INVESTORS WITH MORE CREDIBLE FINANCIAL STATEMENTS ONLY THEORETICALLY IMPROVED ONES THE MERIT OF THESE SOCALLED IMPROVEMENTS IS NOT CLEAR OPTIONPRICING MODELS USE COMPLICATED FORMULAS BASED ON VARIOUS ASSUMPTIONS INCLUDING PREDICTIONS ON INTEREST RATES AND STOCK VOLATILITY 10 YEARS INTO THE FUTURE AND PRODUCE WIDELY DIVERGENT RESULTS THE FASB HOPES ITS PROPOSALS WILL ENHANCE THE COMPARABILITY OF EARNINGS AMONG COMPANIES BUT ACHIEVING THIS LIMITED GOAL IS DOUBTFUL WHEN THE ESTIMATES UNDERLYING EARNINGS LACK COMPARABILITY FOR EXAMPLE COMPENSATION CONSULTANTS REPORTEDLY ESTIMATED THE CURRENT VALUE OF THE OPTIONS PACKAGE PROVIDED TO KODAK'S NEW CEO LAST DECEMBER AT BETWEEN 13 MILLION AND 17 MILLION A RANGE OF 30 IF THIS RANGE EXISTS FOR OPTIONS ON KODAK A MATURE COMPANY WITH AN ESTABLISHED TRADING HISTORY AND ACTIVELY TRADED OPTIONS FOR ITS STOCK IMAGINE THE RANGE FOR A NEW HIGHTECH COMPANY IN A NEW INDUSTRY WITH NO EXISTING MARKET HISTORY OR OPTIONS MARKETS THE ESTIMATED VALUE OF THE LATTER COMPANY'S OPTIONS WOULD BE ALL OVER THE BOARD AND IF RECORDED AS AN EXPENSE WOULD RENDER ITS EARNINGS MEANINGLESS TO INVESTORS FOR COMPARATIVE PURPOSES MOREOVER IT'S UNLIKELY THAT THE FASB'S ACTIONS ARE NEEDED TO CURB EXCESSIVE EXECUTIVE SALARIES AS OTHERS ARGUE NO PAY PACKAGE GOES UNNOTICED UNDER THE SEC'S COPIOUS NEW EXECUTIVE COMPENSATION DISCLOSURES AND BY LINKING PAY TO PERFORMANCE STOCK OPTIONS REWARD EXECUTIVES ONLY IF SHAREHOLDERS WIN TOO THE BOTTOM LINE IS THAT BY USING FOOTNOTE DISCLOSURES INVESTORS WILL RECEIVE THE SAME INFORMATION THAT THE FASB SEEKS TO PRESENT MORE IMPORTANT THE INCOME STATEMENT WILL NOT REFLECT GUESSTIMATES OF OPTION VALUES AND THE DAMAGING SIDEEFFECTS OF THE FASB'S PROPOSALS WILL BE ELIMINATED ALL WITH NO DISCERNIBLE HARM TO SHAREHOLDERS AND INVESTORS YET THE FASB IS UNABLE TO FULLY EVALUATE THIS ALTERNATIVE APPROACH AS IT RECENTLY ADMITTED AT OVERSIGHT HEARINGS BEFORE THE SEC THE FASB LACKS THE COMPETENCE TO JUDGE NONACCOUNTING ISSUES AND THEREFORE DOES NOT CONSIDER THEM WHEN REACHING ITS CONCLUSIONS PROMOTING INVESTORS' INTERESTS DEMANDS THAT WE NOT BLINDLY DERAIL THE ENGINE OF GROWTH THAT EMPLOYEE STOCK OPTIONS SO CLEARLY REPRESENT FOR EVERYONE'S SAKE THE FASB SHOULD AMEND ITS PROPOSALS OR THE SEC SHOULD ACT NOW TO AVERT A DISASTROUS TRAIN WRECK MR BEESE IS A COMMISSIONER ON THE SECURITIES AND EXCHANGE COMMISSION SEE RELATED LETTER LETTERS TO THE EDITOR IN ACCOUNTING TRUTH ABOVE ALL WSJ MARCH 21 1994 9402080045 YY94 MM03 9403180203 940318 WHO'S NEWS SHREWD DEALS HELPED DOLGEN GET VIACOM JOB BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL IN THE EARLY 1980S WHILE AN EXECUTIVE AT COLUMBIA PICTURES JONATHAN DOLGEN NEGOTIATED A DEAL TO SELL THE STUDIO'S MOVIES TO TIME WARNER INC'S HOME BOX OFFICE FOR FEES SO RICH THAT HBO ENDED UP PAYING 35 MILLION FOR ONE MOVIE GHOSTBUSTERS THE EXECUTIVE WHO TOOK THE HEAT FROM TIME FOR OVERPAYING ON THAT DEAL WAS THENHBO PRESIDENT FRANK BIONDI WHO LATER LEFT THE JOB AND WENT ON TO BECOME CHIEF EXECUTIVE OF VIACOM INC BUT HE REMAINED AN ADMIRER OF MR DOLGEN'S SKILLS YESTERDAY MR DOLGEN WAS NAMED CHAIRMAN OF THE NEWLY FORMED VIACOM ENTERTAINMENT GROUP PART OF THE GIANT CREATED BY THE RECENT MERGER OF VIACOM AND PARAMOUNT COMMUNICATIONS INC MR DOLGEN 49 YEARS OLD IS LEAVING HIS POST AS PRESIDENT OF SONY CORP'S MOTION PICTURE GROUP WHICH INCLUDES COLUMBIA PICTURES AND TRISTAR PICTURES AT VIACOM HE WILL REPORT TO MR BIONDI OVERSEEING THE OPERATIONS OF THE PARAMOUNT MOTIONPICTURE AND TELEVISION GROUP INCLUDING THE TV STATIONS GROUP AND THE UPSTART PARAMOUNT NETWORK THE GROUP WILL ALSO INCLUDE VIACOM'S OWN TV PRODUCTION DISTRIBUTION AND BROADCASTING OPERATIONS BY HOLLYWOOD STANDARDS IT IS A JOB ON A PAR WITH JUST A HANDFUL OF THE INDUSTRY'S TOP PLAYERS AND A BIG STEP UP FOR MR DOLGEN WHO HAS UP TO NOW BEEN IN MORE BEHINDTHESCENES ROLES AN ATTORNEY BY TRAINING MR DOLGEN IS REGARDED BY MANY AS ONE OF HOLLYWOOD'S SHREWDER DEAL MAKERS AND A STICKLER FOR FISCAL RESPONSIBILITY IN AN INDUSTRY WHERE MANY STUDIOS ARE PLAGUED BY PROFLIGATE SPENDING BUT HE HAS NEVER RUN SO SPRAWLING AN OPERATION WHERE SO MANY DECISIONS HINGE ON CREATIVE ISSUES THAT HE HAS NEVER BEEN DIRECTLY RESPONSIBLE FOR AND HE HAS AN ABRASIVE PERSONALITY IN BUSINESS DEALINGS THAT SOME SAY WILL NEED TO BE TONED DOWN IN A JOB WHERE DIPLOMACY IS A VALUED SKILL MOREOVER HE WILL HAVE HIS WORK CUT OUT FOR HIM WITH PARAMOUNT WHOSE OPERATIONS HAVE BEEN PLAGUED BY LOSSES MR DOLGEN'S ADMIRERS SAY HE'S UP TO THE TASK THIS IS A JOB HE'S BEEN IN TRAINING FOR HIS WHOLE LIFE SAYS ENTERTAINMENT MOGUL DAVID GEFFEN THIS IS JON'S MOMENT VICTOR KAUFMAN THE CHAIRMAN OF SAVOY PICTURES WHO RAN COLUMBIA BEFORE IT WAS ACQUIRED BY SONY SAYS MR DOLGEN GETS ALONG WITH CREATIVE PEOPLE AND IS THE PERSON WHO CAN BEST BRIDGE THE GAP BETWEEN THE BUSINESS AND CREATIVE SIDE MR KAUFMAN RELIED ON MR DOLGEN WHEN THEY WERE BOTH AT COLUMBIA TO NEGOTIATE MATTERS SUCH AS THE HBO DEAL AFTER A STINT AT A NEW YORK LAW FIRM MR DOLGEN JOINED COLUMBIA IN 1976 AS AN ASSISTANT GENERAL COUNSEL AND ROSE THROUGH THE BUSINESS RANKS OF THE COMPANY ALONG WITH MR KAUFMAN HE HELPED FORM TRISTAR PICTURES IN THE EARLY 1980S THE FIRST NEW STUDIO TO BE LAUNCHED IN DECADES MR DOLGEN WAS NOTED FOR DESIGNING UNIQUE FILMFINANCING TECHNIQUES SUCH AS LIMITED PARTNERSHIPS AND FOREIGNRIGHTS DEALS TO TAKE THE RISK OFF THE STUDIO WHILE LEAVING IT WITH BIG UPSIDE OPPORTUNITIES IN 1985 HE LEFT COLUMBIA TO JOIN NEWS CORP'S FOX INC WORKING UNDER ITS THENCHAIRMAN BARRY DILLER DURING THE YEARS WHEN MR DILLER WAS LAUNCHING THE FOX NETWORK AND RESTRUCTURING THE STUDIO WHICH HAD HAD HEAVY LOSSES MR DILLER WAS A TOUGH BOSS BUT SUBORDINATES SAY MR DOLGEN WAS EVEN TOUGHER PRONE TO HARANGUING STAFFERS AND TO FLASHES OF ANGER HE ACKNOWLEDGES THAT HIS STYLE IS ROUGH I'M GENETICALLY INCAPABLE OF NOT SAYING WHAT I THINK AND I'M CERTAINLY NOT THE MELLOWEST GUY YOU EVER MET BUT PEOPLE WHO HAVE WORKED WITH MR DOLGEN SAY THEY LEARNED VALUABLE LESSONS UNDER HIS TUTELAGE ROB FRIED A FILM PRODUCER WHO WORKED FOR MR DOLGEN AT FOX AS A YOUNG MBA GRADUATE SAYS MR DOLGEN CHARGED HIM WITH RESEARCHING ALL ANGLES OF A DEAL BEFORE MR DOLGEN WENT IN TO NEGOTIATE IT HIS WORK ETHIC WAS THAT YOU NEVER ENTERED A NEGOTIATION WITHOUT DOING ALL THE HOMEWORK MR FRIED SAYS WHEN MR DOLGEN JOINED SONY PICTURES IN 1990 THE STUDIO OPERATIONS WERE BADLY IN NEED OF COST CONTAINMENT AFTER SONY ACQUIRED COLUMBIA IN 1989 IT SPENT HEAVILY TO INCREASE PRODUCTION UNDER ITS NEW CHAIRMAN PETER GUBER AND MR DOLGEN WAS BROUGHT IN TO TIGHTEN UP THE SHIP HE SLASHED MARKETING AND PRODUCTION COSTS FOR MANY FILMS AND GOT TOUGH ON MOVIES THAT WERE RUNNING OVER BUDGET JUST TWO MONTHS AGO MR DOLGEN WAS GIVEN NEW EXPANDED RESPONSIBILITES AT SONY TO RUN BOTH THE COLUMBIA AND TRISTAR MOTIONPICTURE OPERATIONS WITH MARK CANTON CHAIRMAN OF THE MOTIONPICTURE GROUP AND LATE LAST YEAR MR DOLGEN SIGNED A NEW LONGTERM CONTRACT WITH SONY BUT PEOPLE FAMILIAR WITH THE SITUATION SAY THAT MR DOLGEN INSISTED ON A PROVISION THAT WOULD LET HIM OUT OF THE CONTRACT FREEING HIMSELF FROM THE THREAT OF LEGAL ACTION THAT OFTEN HINDERS MOVIE EXECUTIVES WHO TRY TO LEAVE A BIG JOB TO GO TO A COMPETITOR WHEN THEY AREN'T BEING FIRED MR DOLGEN DECLINED TO COMMENT ON HIS CONTRACT BUT SAYS SONY WAS WILLING TO ACCOMMODATE HIS DESIRE TO TAKE THE VIACOM OPPORTUNITY AT VIACOM MR DOLGEN SAYS HIS TASK IS TO FIX PARAMOUNT AND MAKE IT WORK IN THE CHANGING LANDSCAPE OF THE ENTERTAINMENT BUSINESS WHERE THE IMMUTABLE TRUTHS ABOUT THE BUSINESS CHANGE EVERY 24 MONTHS THOUGH HE ADMITS HIS CREATIVE EXPERIENCE IS LIMITED HE MAINTAINS HE READS SCRIPTS AND HAS GOTTEN INVOLVED IN CREATIVE DECISIONS AT PARAMOUNT HE ADDS HE EXPECTS TO LEAVE MOST OF THOSE DECISIONS TO SUCH EXECUTIVES AS SHERRY LANSING HEAD OF THE MOTIONPICTURE GROUP AND KERRY MCCLUGGAGE WHO HEADS TELEVISION MR BIONDI SAYS MR DOLGEN'S SKILLS AS A DEAL MAKER AND FINANCIAL EXECUTIVE FIT WELL WITH VIACOM'S NEEDS WE WANT TO MAKE GOOD CREATIVE QUALITY ENTERTAINMENT MR BIONDI SAYS BUT WE WANT TO MAKE IT SMART BY WATCHING COSTS AND MAKING ASTUTE DEALS SAYS MR DOLGEN THIS IS ALMOST A DREAM JOB I'M COMING INTO A COMPANY WITH A GREAT TRADITION AT A VERY INTERESTING POINT IN THE COMPANY'S HISTORY AND I'M WORKING WITH PEOPLE WHO I KNOW AND WHO ARE FRIENDS 9403180202 940318 POLITICS & POLICY SEC INVESTIGATING ARKANSAS INVESTORS IN PROBE INTO POSSIBLE INSIDER TRADING BY BRUCE INGERSOLL AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON SEVERAL ARKANSAS INVESTORS INCLUDING A GROUP ONCE HEADED BY WHITE HOUSE AIDE PATSY THOMASSON ARE BEING INVESTIGATED BY THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH POSSIBLE INSIDER TRADING THE INQUIRY INVOLVES SUSPICIOUS TRADING IN ARCTIC ALASKA FISHERIES CORP STOCK IN JUNE 1992 SHORTLY BEFORE ARKANSASBASED TYSON FOODS INC ANNOUNCED AN AGREEMENT TO ACQUIRE THE SEAFOOD COMPANY ACCORDING TO PEOPLE FAMILIAR WITH THE INQUIRY ONE OF THE INVESTORS IS AN UNCLE OF WILLIAM KENNEDY III WHITE HOUSE ASSOCIATE COUNSEL MR KENNEDY HAS ASSURED WHITE HOUSE OFFICIALS THAT HE ISN'T UNDER INVESTIGATION I HAVEN'T BEEN CONTACTED BY ANYBODY AT THE SEC HE SAID IN AN INTERVIEW LAST NIGHT AS FAR AS I KNOW I'M NOT BEING INVESTIGATED THE TYSON ACQUISITION WAS HANDLED BY THE ROSE LAW FIRM WHERE MR KENNEDY WAS A PARTNER BEFORE COMING TO WASHINGTON BUT HE SAID HE WASN'T INVOLVED IN THE MERGER NEGOTIATIONS BETWEEN THE SEATTLEBASED SEAFOOD COMPANY AND TYSON THE WORLD'S LARGEST POULTRY PROCESSOR I DIDN'T PERFORM LEGAL WORK ON THAT DEAL HE SAID MS THOMASSON WHO SERVED AS PRESIDENT OF PHOENIX GROUP INC A LITTLE ROCK HOLDING COMPANY SAID IN A STATEMENT ISSUED LAST NIGHT I NEVER TRADED THE STOCK I NEVER EXECUTED AN ORDER FOR THE STOCK I WAS A SALARIED EMPLOYEE AND HAD NO FINANCIAL INTEREST IN THE PHOENIX GROUP ACCOUNT THE PHOENIX GROUP ONCE CALLED LASATER INC WAS OWNED BY DAN LASATER A CLINTON FAMILY FRIEND AND ONETIME MAJOR BOND TRADER IN LITTLE ROCK WILLIAM MCLUCAS THE SEC'S ENFORCEMENT DIRECTOR WOULD NEITHER CONFIRM NOR DENY THE EXISTENCE OF AN INVESTIGATION AS IS THE AGENCY'S CUSTOM SEC INVESTIGATORS ARE LOOKING INTO A SUSPICIOUS SURGE OF ARCTIC ALASKA STOCKBUYING IN THE WEEK BEFORE TYSON'S JUNE 16 1992 ANNOUNCEMENT THAT IT HAD AGREED TO ACQUIRE ARCTIC ALASKA ANNOUNCEMENT OF THE CASH AND STOCK TRANSACTION VALUED AT MORE THAN 200 MILLION SENT ARCTIC ALASKA'S SHARES SOARING 475 OR 69 TO CLOSE THAT DAY AT 11625 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THE INVESTIGATORS ARE TRYING TO TRACE HOW WORD OF THE IMPENDING AGREEMENT LEAKED AND SPREAD AMONG INVESTORS IN ARKANSAS AND ELSEWHERE MS THOMASSON WAS LISTED AS REGISTERED AGENT AND EXECUTIVE VICE PRESIDENT OF LASATER INC IN AN AUGUST 1986 FILING WITH THE ARKANSAS SECRETARY OF STATE TWO MONTHS LATER IT WAS RENAMED PHOENIX GROUP MS THOMASSON BECAME PHOENIX'S PRESIDENT IN FEBRUARY 1991 ACCORDING TO AN AMENDED FILING ANOTHER FILING IN NOVEMBER 1992 REPORTS THAT SHE WAS REPLACED AS REGISTERED AGENT INDICATING THAT SHE HAD LEFT PHOENIX BY THAT TIME MS THOMASSON IS DIRECTOR OF THE WHITE HOUSE OFFICE OF ADMINISTRATION AT ONE TIME SHE SERVED AS CHAIRMAN OF THE ARKANSAS HIGHWAY COMMISSION WHILE BILL CLINTON WAS GOVERNOR SHE WAS ALSO ONE OF THREE WHITE HOUSE AIDES WHO WENT TO DEPUTY COUNSEL VINCE FOSTER'S OFFICE AFTER HE COMMITTED SUICIDE MR LASATER PLEADED GUILTY IN 1986 TO CONSPIRING TO DISTRIBUTE COCAINE AND WAS GIVEN A 30MONTH SENTENCE THE PRESIDENT'S BROTHER ROGER WORKED FOR MR LASATER COURT TESTIMONY DISCLOSED THAT ROGER CLINTON BORROWED MONEY FROM MR LASATER TO PAY DRUG DEBTS AND MR CLINTON CAME UNDER FIRE WHILE SERVING AS THE ARKANSAS GOVERNOR FOR ALLOWING THE STATE TO CONTINUE BOND BUSINESS WITH MR LASATER'S INVESTMENT FIRM DESPITE COURT TESTIMONY INDICATING MR LASATER WAS INVOLVED WITH DRUGS THE SUSPICIOUS TRADING WAS BROUGHT TO THE SEC'S ATTENTION BY THE STOCK EXCHANGE WHICH ROUTINELY MONITORS TRADING IN TAKEOVER STOCKS THERE WAS A SHARP INCREASE IN TRADING VOLUME TO MORE THAN 55000 SHARES ON FRIDAY JUNE 12 1992 FROM LESS THAN 8000 SHARES ON JUNE 9 ACCORDING TO TRADING RECORDS ARCTIC ALASKA STOCK ROSE ABOUT 1 TO 7125 BY WEEK'S END WHEN TYSON ANNOUNCED THE ACQUISITION ON JUNE 16 THE STOCK SOARED TO 11625 9403180201 940318 INTERNATIONAL MEXICANS DISCOVER KIDNAPPING IS A GROWING PART OF BUSINESS RISK BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE RISK OF KIDNAPPING HAS BECOME ONE OF THE CONDITIONS OF DOING BUSINESS IN MEXICO ALTHOUGH MONDAY'S KIDNAPPING OF THE PRESIDENT OF GRUPO FINANCIERO BANAMEXACCIVAL IS THE MOST PUBLICIZED IN DECADES SECURITY EXPERTS AND EXECUTIVES SAY THE PROBLEM HAS BECOME SO SEVERE IN MEXICO THAT THIS COUNTRY IS NOW ONE OF THE MOST DANGEROUS SPOTS IN LATIN AMERICA MEXICO HAS BEEN STEADILY GROWING AS A PROBLEM AREA SAYS MIKE ACKERMAN WHO RUNS A SECURITY COMPANY IN MIAMI THAT CARRIES HIS NAME IT'S NOT AS BAD AS COLOMBIA IT'S NOT AS BAD AS RIO DE JANEIRO BUT IT'S PROBABLY THIRD IN LATIN AMERICA ANOTHER SECURITY EXPERT WHO ASKED THAT HIS NAME NOT BE USED SAID HE HAD TRACKED 145 KIDNAPPINGS IN MEXICO JUST IN 1993 HE SAID THAT 12 OF THOSE APPARENTLY INVOLVED RANSOMS OF MORE THAN 1 MILLION WITH ONE PAYMENT TOTALING 25 MILLION HE SAID A FURTHER DOZEN OF THE CASES INVOLVED RANSOMS OF 500000 TO 1 MILLION THIS EXPERT SAID THAT WHEN HE BEGAN TRACKING MEXICAN KIDNAPPINGS FOUR YEARS AGO THE AVERAGE RANSOM WAS LESS THAN 10000 TODAY HE SAYS RANSOMS AVERAGE MORE THAN 100000 THE MILLIONDOLLAR RANSOMS BRING UP THE AVERAGE REAL FAST HE SAYS VICTOR ALMEIDA CHIEF EXECUTIVE OFFICER OF INTERCERAMIC A TILE MAKER BASED IN CHIHUAHUA SAYS THE PROBLEM IS OUT OF CONTROL YOU FEEL KIND OF DESPERATE THAT YOU MIGHT BE KIDNAPPED YOU FEEL LIKE YOU LIVE IN NICARAGUA RATHER THAN MEXICO THE KIDNAPPING PROBLEM HAS GENERALLY NOT RECEIVED WIDE NOTICE IN MEXICO BECAUSE INDIVIDUALS TAKEN HAVE TYPICALLY BEEN LITTLEKNOWN RANCHERS AND FARMERS AND HAVE LIVED FAR FROM THE CAPITAL BUT THE BUSINESS COMMUNITY SEEMED TO HAVE BEEN ROUSED TO ACTION BY MONDAY'S KIDNAPPING OF ALFREDO HARP HELU PRESIDENT OF BANAMEXACCIVAL A GROUP OF PROMINENT BUSINESSMEN FOR INSTANCE FORMALLY CALLED ON THE GOVERNMENT TO START ATTACKING THE PROBLEM FINANCE MINISTER PEDRO ASPE SAID IN AN INTERVIEW THAT FROM A PERSONAL POINT OF VIEW THIS IS A TRAGEDY MR HARP IS ONE OF THE NICEST GUYS AND IS WELLLIKED AND ADMIRED BY EVERYBODY I HOPE AND AM CONFIDENT THAT HE WILL BE RETURNED SAFELY AS SOON AS POSSIBLE THAT IS VERY POSSIBLE BECAUSE AFTER THE PAYMENT OF A RANSOM MEXICAN EXECUTIVES HAVE ALMOST ALWAYS BEEN FREED UNHARMED THE BROADER KIDNAPPING PROBLEM WILL SURELY PROVE TO BE HARDER TO SOLVE FOR ONE THING BECAUSE THE PROBLEM HAS BEEN LARGELY IGNORED THERE AREN'T NEARLY AS MANY PROFESSIONALLY TRAINED BODYGUARDS AND DRIVERS IN MEXICO AS IN OTHER LATIN AMERICAN COUNTRIES BESIDES MACHO MEXICAN EXECUTIVES HAVE TENDED TO INSIST THAT THEY DON'T NEED ANY PROTECTION WHEN MR HARP WAS SEIZED ON MONDAY FOR INSTANCE HE HAD ONLY HIS DRIVER WITH HIM EVEN THOUGH HE IS ONE OF MEXICO'S WEALTHIEST PEOPLE AND HAD APPEARED ON A LIST DISCOVERED LAST YEAR OF POSSIBLE KIDNAP TARGETS PUT TOGETHER BY THE BASQUE SEPARATIST GROUP ETA THE KIDNAPPERS HAD LITTLE TROUBLE GRABBING HIM EVEN THOUGH THEY REPORTEDLY WERE USING JUST TWO VOLKSWAGENS TO CUT OFF MR HARP'S GRAND MARQUIS THE PROBLEM IS ALSO COMPLICATED IN MEXICO BECAUSE POLICEMEN AND FORMER POLICEMEN THE TYPE OF MEN WHO GENERALLY ACT AS BODYGUARDS IN MOST COUNTRIES ARE REPUTED TO BE THE KIDNAPPERS IN MANY MEXICAN CASES PARTLY BECAUSE OF THE ALLEGED INVOLVEMENT OF THE POLICE SECURITY EXPERTS SAY THEY DON'T THINK ANY OF THE KIDNAPPERS INVOLVED IN A BIGMONEY CASE HAS EVER BEEN CAUGHT THE SECURITY EXPERTS SAY THAT ESPECIALLY WITH THE PUBLICITY SURROUNDING THE HARP CASE MANY WEALTHY MEXICANS HAVE FINALLY BEGUN TO INQUIRE ABOUT HIRING BODYGUARDS OR SPECIALLY TRAINED DRIVERS STILL BECAUSE SO MANY OF MEXICO'S KIDNAPPINGS HAPPEN IN REMOTE AREAS WHILE A RANCHER OR FARMER IS DRIVING AROUND HIS PROPERTY THE SECURITY EXPERTS SAY IT WILL BE HARD TO STOP A DETERMINED KIDNAPPER THEY ALSO SAY WRYLY THAT THE KIDNAPPERS HAVE BEEN GETTING SO MUCH PRACTICE THAT THEY ARE BECOMING GOOD AT SNATCHING PEOPLE SO FAR ALL THE PROMINENT TARGETS IN MEXICO HAVE BEEN MEXICAN AND THE EXPERTS SAY IT'S LIKELY TO STAY THAT WAY FOR A WHILE THEY SAY THE MEXICANS WHO ARE GRABBED ARE TYPICALLY MUCH WEALTHIER THAN ANY FOREIGN EXECUTIVE LIVING IN MEXICO IN ADDITION IT'S MUCH EASIER FOR KIDNAPPERS TO ARRANGE A PAYOFF FROM A LOCAL SOURCE OF MONEY THAN FROM A FOREIGN SOURCE 9403180200 940318 BUSINESS BRIEF LEGAL & GENERAL GROUP PLC PRETAX PROFIT ROSE 56 IN '93 GENERALINSURANCE ARM CITED BRITISH INSURER LEGAL & GENERAL GROUP PLC SAID PRETAX PROFIT ROSE 56 IN 1993 TO 181 MILLION 2707 MILLION OR 3053 A SHARE COMPARED WITH 1992 BOOSTED BY A MUCH IMPROVED RESULT FROM GENERALINSURANCE ACTIVITIES A YEAR EARLIER PRETAX PROFIT WAS 1161 MILLION OR 1850 A SHARE THE COMPANY'S 1993 DIVIDEND ROSE 52 TO 2010 FROM 1910 A YEAR EARLIER WORLDWIDE PROFITS FROM LIFE AND PENSION BUSINESSES TOTALED 1515 MILLION UP SLIGHTLY FROM 1509 MILLION FOLLOWING LOWER US INVESTMENT GAINS TOTAL WORLDWIDE PREMIUM INCOME ROSE 17 TO 236 BILLION LEGAL & GENERAL'S GENERALINSURANCE ARM POSTED PROFIT OF 273 MILLION IN 1993 SWINGING FROM A LOSS OF 61 MILLION IN 1992 9403180199 940318 NATIONWIDE CELLULAR SEES 4THPERIOD LOSS DESPITE SALES GROWTH VALLEY STREAM NY NATIONWIDE CELLULAR SERVICE INC EXPECTS TO REPORT STRONG SALES GROWTH IN THE FOURTH QUARTER WHICH PARADOXICALLY WILL RESULT IN A NET LOSS BECAUSE OF ONETIME COSTS OF ADDING NEW SUBSCRIBERS IN AN INTERVIEW CHAIRMAN STEPHEN KATZ SAID THE RESELLER OF CELLULAR SERVICES EXPECTS TO REPORT THAT SALES IN THE QUARTER GREW ABOUT 8 TO MORE THAN 48 MILLION FROM 449 MILLION A YEAR AGO FOR THE QUARTER MR KATZ SAID NATIONWIDE WILL POST A NET LOSS OF ABOUT 1 MILLION OR 15 CENTS A SHARE THAT COMPARES WITH YEARAGO NET INCOME OF 57 MILLION OR 65 CENTS A SHARE INCLUDING A ONETIME GAIN OF 63 MILLION OR 72 CENTS A SHARE FROM THE SALE OF A SUBSIDIARY'S ASSETS WE TYPICALLY LOSE MONEY WHEN WE GROW BECAUSE OF THE COST OF ACQUIRING NEW SUBSCRIBERS LARGELY REFLECTING LOSSES ON THE SALE OF NEW EQUIPMENT AND COMMISSIONS PAID TO SALES REPRESENTATIVES MR KATZ SAID AND ALTHOUGH THE ENTIRE EXPENSE OF ACQUIRING SUBSCRIBERS IS REFLECTED IN THE PERIOD IN WHICH THEY ARE ADDED THERE IS USUALLY A LAG TIME BEFORE REVENUE AND PROFIT FROM NEW SUBSCRIBERS ARE REFLECTED BY ALL INDICATIONS THIS IS THE BEST FIRST QUARTER IN OUR HISTORY IN TERMS OF SUBSCRIBER GROWTH BECAUSE OF INCREASED EMPHASIS ON RETAIL SALES AND MARKETING MR KATZ SAID FOR THE YEAR NET WILL EXCEED 175 MILLION OR ABOUT 12 CENTS A SHARE A DECLINE FROM THE YEARAGO NET OF 67 MILLION OR 79 CENTS A SHARE INCLUDING THE ONETIME GAIN WITHOUT THE ONETIME GAIN YEARAGO PROFIT FROM OPERATIONS TOTALED ABOUT 400000 OR THREE CENTS A SHARE THE COMPANY EXPECTS TO POST A 29 INCREASE IN SALES FOR THE YEAR TO MORE THAN 182 MILLION FROM 1418 MILLION NATIONWIDE EXPECTS TO POST ITS FOURTHQUARTER AND YEAR RESULTS EARLY NEXT WEEK NATIONWIDE HAS ABOUT 195000 SUBSCRIBERS IN SEVEN MARKETS IN NEW YORK CHICAGO AND THE NORTHEAST CORRIDER EARLIER THIS WEEK THE COMPANY ADDED 14000 SUBSCRIBERS IN THE BALTIMORE/WASHINGTON AREA BY BUYING ASSETS OF UNICEL AMERICA INC ANOTHER RESELLER IT EXPECTS SUBSCRIBERS THIS YEAR TO GROW BY MORE THAN 40 TO ABOUT 250000 THROUGH ACQUISITIONS AND INTERNAL GROWTH 9403180198 940318 WHO'S NEWS PNC BANK CORP PNC BANK CORP PITTSBURGH ROBERT L HAUNSCHILD 44 YEARS OLD FORMERLY SENIOR VICE PRESIDENT OF PLANNING/FINANCE WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER A POST THAT HAS BEEN VACANT AT THIS BANK HOLDING COMPANY FOR SEVERAL YEARS 9403180197 940318 WHO'S NEWS ARI NETWORK SERVICES INC ARI NETWORK SERVICES INC MILWAUKEE GEORGE D DALTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FISERV INC WAS NAMED A DIRECTOR OF THIS ELECTRONIC DATA PROCESSING CONCERN FILLING A VACANCY ON THE BOARD THERE ARE EIGHT BOARD MEMBERS 9403180196 940318 WHO'S NEWS CHRYSLER PAID EATON AND LUTZ 19 MILLION IN '93 BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP WHICH IS ENJOYING RECORD SALES AND PROFITS LAST YEAR PAID ITS TWO TOP EXECUTIVES A TOTAL OF 19 MILLION AND TOOK ACTION SOME ANALYSTS SAW AS A PRECURSOR TO A STOCK SPLIT IN ITS PRELIMINARY PROXY STATEMENT CHRYSLER ASKED SHAREHOLDERS TO DOUBLE THE NUMBER OF SHARES THE CORPORATION IS AUTHORIZED TO ISSUE TO ONE BILLION COMMON SHARES UP FROM 500 MILLION SHARES I THINK THEY ARE POSITIONING THEMSELVES FOR A STOCK SPLIT SAID RONALD A GLANTZ AN ANALYST WITH DEAN WITTER REYNOLDS THE ADDITIONAL SHARES COULD ALSO BE USED TO ACQUIRE ANOTHER COMPANY OR TO RAISE CAPITAL BUT CHRYSLER MANAGEMENT HAS REPEATEDLY SAID THE COMPANY WON'T GO ON AN ACQUISITION BINGE AND THE COMPANY IS WELLPOSITIONED TO GENERATE LARGE PROFITS IN A BOOMING AUTO MARKET ENOUGH TO FUND ITS CAPITAL NEEDS CHRYSLER SAID IT HAS NO PLANS TO ISSUE ADDITIONAL SHARES BUT NEEDED THE AUTHORIZATION FOR ADDITIONAL FLEXIBILITY SEPARATELY THE COMPANY REPORTED THAT TWO DIRECTORS A JEAN DE GRANDPRE AND WILLIAM G MILLIKEN WILL RETIRE FROM ITS BOARD REDUCING THE NUMBER OF BOARD MEMBERS TO 13 CHRYSLER DISCLOSED THAT IT PAID ITS CHAIRMAN ROBERT J EATON 9259786 INCLUDING A 4478272 GAIN FROM EXERCISING STOCK OPTIONS AND A FEW PERQUISITES SUCH AS A 25000 INITIATION FEE FOR A PRIVATE CLUB MR EATON EARNED 19 MILLION IN SALARY AND STOCK AWARDS IN 1992 CHRYSLER ALSO GRANTED MR EATON OPTIONS ON 200772 SHARES AT PRICES RANGING FROM 39 TO 53 A SHARE EXERCISABLE IN THE NEXT THREE YEARS CHRYSLER ESTIMATED THE OPTIONS' CURRENT VALUE AT 29 MILLION ROBERT A LUTZ CHRYSLER'S PRESIDENT EARNED 9750495 INCLUDING A 5965435 GAIN FROM THE EXERCISE OF OPTIONS CHRYSLER ALSO GRANTED MR LUTZ OPTIONS ON 99301 SHARES AT PRICES RANGING FROM 44 TO 46 A SHARE EXERCISABLE OVER THREE YEARS THE COMPANY ESTIMATED THE CURRENT VALUE OF THOSE OPTIONS AT 14 MILLION MR LUTZ TOOK HOME 18 MILLION IN 1992 THE CORPORATION SAID ITS GENEROUS COMPENSATION WAS DUE IN PART TO THE AUTO MAKER'S RECORD PRETAX EARNINGS AND RECORD SALES AND REVENUE FOR THE YEAR THE UNITED AUTO WORKERS UNION BLASTED THE PAY AS EXCESSIVE CHRYSLER ALSO MADE SURE ITS FORMER CHAIRMAN LEE A IACOCCA WON'T HAVE TO FLY COMMERCIAL WHILE HE'S ON CHRYSLERRELATED BUSINESS MR IACOCCA'S ORIGINAL CONSULTING AGREEMENT ENTITLED HIM TO 500000 A YEAR AN OFFICE STAFF FOR TWO YEARS AND USE OF CORPORATE AIRCRAFT FOR ONE YEAR FOLLOWING HIS RETIREMENT AT THE END OF 1992 THE NEW AGREEMENT GIVES MR IACOCCA AN ADDITIONAL YEAR ON CHRYSLER'S FLEET OF CORPORATE JETS 9403180195 940318 STICK TO THE BASICS TO WOO CONSUMERS IN CHINA STUDY SAYS UNIQUE' ASIA MARKET RESPONDS BEST TO THE TRIED AND TRUE WHEN BUYING PRODUCTS BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL KEEP IT SIMPLE THAT'S WHAT SOME MARKETING EXPERTS ADVISE CONSUMER PRODUCTS COMPANIES TRYING TO MAKE A SPLASH IN CHINA IN A RECENT SURVEY CONSULTING FIRM MCKINSEY & CO FOUND THAT SOME OF THE MORE SUCCESSFUL COMPANIES IN CHINA INCLUDING COCACOLA CO UNILEVER PROCTER & GAMBLE CO JOHNSON & JOHNSON NESTLE SA AND VOLKSWAGEN AG TEND TO STICK TO THE BASICS IN THEIR MARKETING CONTRARY TO CONVENTIONAL WISDOM ABOUT THE UNIQUENESS OF THE CHINA MARKET THE EXCELLENT COMPANIES WE STUDIED DO AN ABSOLUTE MINIMUM OF PRODUCT TAILORING THE REPORT SAID THE FIRMS FOCUS ON THEIR CORE GLOBAL PRODUCTS INSTEAD OF IMMEDIATELY DEVELOPING MANY NEW ITEMS SPECIFICALLY FOR CHINA THEY ALSO TEND TO OFFER CHINESE CONSUMERS THE LATEST MERCHANDISE NOT CASTOFFS THAT HAVE FAILED TO SELL ELSEWHERE MINOR ADJUSTMENTS ARE IN ORDER HOWEVER WHILE FOREIGN BRANDS HAVE MORE CACHE THAN LOCAL ONES COMPANIES OFTEN ASSIGN CHINESE NAMES TO THEIR PRODUCTS THE CHINESE NAME OF PROCTER'S REJOICE SHAMPOO ROUGHLY TRANSLATES AS SOFT AND FLOWING MAKERS OF SHAMPOOS AND OTHER PERSONALCARE PRODUCTS ARE ALSO REFORMULATING THEIR PRODUCTS SLIGHTLY TO ACCOMMODATE DIFFERENCES IN WATER QUALITY AND HAIR TYPE AS CHINA'S STATEMANAGED DISTRIBUTION NETWORKS CRUMBLE COMPANIES SUCH AS PROCTER AND COKE ARE SETTING UP THEIR OWN SALES FORCES CREATING OPPORTUNITIES TO ESTABLISH RELATIONSHIPS WITH RETAILERS UNILEVER USES HEAVY BURSTS OF ADVERTISING POSTERS AND OTHER GRAPHIC MATERIALS APPEARED THROUGHOUT SHANGHAI LAST YEAR DURING THE RELAUNCH OF THE COMPANY'S LUX SOAP JOHNSON & JOHNSON WHICH OCCUPIES PRIME SELLING SPACE IN MOST OF GUANGZHOU'S LEADING DEPARTMENT STORES USES IMAGES OF BLOND BLUEEYED WESTERN BABIES IN POSTERS THAT HANG ABOVE SALES COUNTERS MEANWHILE THE BATTLE FOR CHINESE MARKET SHARE COULD PRODUCE SOME NEW WORLDCLASS COMPANIES SAYS PHIL DAY A DIRECTOR OF PAC RIM CONSULTING GROUP IN HONG KONG LOCAL AND REGIONAL COMPANIES THAT HAVE ALREADY MOVED FORCEFULLY INTO CHINA ARE GOING TO EMERGE AS MAJOR GLOBAL PLAYERS BECAUSE OF THE SIZE OF THE MARKET HE SAYS MR DAY CITES PRESIDENT FOODS OF TAIWAN AS AN AGGRESSIVE COMPANY THAT BASED ON ITS PROGRESS IN CHINA COULD EMERGE AS THE BIGGEST GLOBAL PLAYER IN THE FOOD BUSINESS 9403180194 940318 MOODY'S MAY LOWER RATINGS ON SOME BONDS ISSUED IN NEW JERSEY A WALL STREET JOURNAL NEWS ROUNDUP MOODY'S INVESTORS SERVICE INC WARNING OF CONTINUING DETERIORATION IN PARTS OF THE EAST COAST TRASHDISPOSAL BUSINESS SAID IT IS CONSIDERING LOWERING ITS RATINGS ON A COMBINED 3778 MILLION OF BONDS ISSUED BY NEW JERSEY MUNICIPALITIES THE BONDS WERE SOLD TO FINANCE TRASHDISPOSAL FACILITIES IN FIVE NEW JERSEY COUNTIES AND ARE SECURED BY THE FLOW OF FEES PAID TO DUMP WASTE MOODY'S SAID THAT NEW JERSEY DUMPING FEES ARE ALREADY THE HIGHEST IN THE NATION AVERAGING ABOUT 100 A TON AND THUS CAN'T EASILY BE RAISED LIMITING COUNTIES' FINANCIAL FLEXIBILITY THE WASTE AUTHORITIES IN THE COUNTIES ATLANTIC CAMDEN MERCER PASSAIC AND WARREN ARE PARTICULARLY VULNERABLE TO A POTENTIAL SUPREME COURT RULING THAT COULD STRIP AWAY FROM LOCAL GOVERNMENTS THE POWER TO CONTROL WHERE GARBAGE IS DUMPED THE RULING IS EXPECTED SOON IN NEARBY PENNSYLVANIA MOODY'S SAID DISPOSAL PRICES ARE 40 A TON AND LOWER AT SOME DUMPS AND INCINERATORS IF MUNICIPALITIES LOST CONTROL OF WHERE TRASH IS DUMPED PRICES ALONG THE EAST COAST COULD PLUNGE UNDERMINING PUBLIC INVESTMENTS IN DUMPS AND INCINERATORS NEW JERSEY WITH NEARLY 2 BILLION IN PUBLICLY FINANCED TRASH INFRASTRUCTURE IS THE MOST VULNERABLE STATE MARIE PISECKI A MOODY'S VICE PRESIDENT SAID BONDS SUBJECT TO DOWNGRADE ARE THOSE SOLELY SECURED BY REVENUE FROM DUMPING FEES OTHER WASTEAUTHORITY BONDS ISSUED BY SOME OF THE SAME COUNTIES HAVE ADDITIONAL CREDIT BACKING THE AMOUNTS THAT COULD BE AFFECTED 8775 MILLION OF ATLANTIC COUNTY UTILITIES AUTHORITY 1895 MILLION OF CAMDEN COUNTY UTILITIES AUTHORITY 399 MILLION OF MERCER COUNTY UTILITIES AUTHORITY 349 MILLION OF PASSAIC COUNTY UTILITIES AUTHORITY AND 257 MILLION OF WARREN COUNTY UTILITIES AUTHORITY 9403180193 940318 SWITZERLAND FORESEES BREATH OF FRESH AIR WAFTING IN TUNNEL SWISS BAN ON TRUCKTRANSIT IRKS NATION'S NEIGHBORS HOPES REST ON RAIL ROUTE BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL WILL A MAMMOTH ALPINE RAILWAY TUNNEL SAVE SWITZERLAND FROM THE WRATH OF OTHER EUROPEAN NATIONS SWISS TRANSPORT MINISTER ADOLF OGI HOPED SO AS HE BRAVED A RECENT EUROPEAN TRAFFIC CONFERENCE THE SWISS VOTED IN A REFERENDUM LAST MONTH TO BAN BY 2004 THE TRANSIT OF FREIGHT BY TRUCK IN FAVOR OF RAIL SHIPMENT AND MR OGI SAID HE NEEDS A GIANT EFFORT TO APPEASE HIS COUNTRY'S IRATE NEIGHBORS THAT EFFORT IS CALLED NEAT FOR NEUE ALPENTRANSVERSALE A PLANNED RAILWAY ROUTE THROUGH SWITZERLAND THAT INCLUDES A 57KILOMETERLONG 3534 MILES TUNNEL UNDER THE GOTTHARD MASSIF THE GOTTHARD PASS WHICH LEADS INTO ITALY IS CURRENTLY THE QUICKEST ROUTE BETWEEN NORTHERN AND SOUTHERN EUROPE THE TUNNEL WOULD BE THE WORLD'S LONGEST AND THE TOTAL PROJECT COULD COST FROM 15 BILLION TO 30 BILLION SWISS FRANCS 1045 BILLION TO 209 BILLION WITH THE TUNNEL TRUCKS COULD BE LOADED ON TRAINS AND CARRIED THROUGH SWITZERLAND SWISS SAY THEY WANT THE LOADS ON RAILS TO AVOID THE TRUCKS' AIR AND NOISE POLLUTION THAT CURRENTLY PLAGUES ALPINE VILLAGES MR OGI ADMITS TO NEEDING ALL THE HELP HE CAN GET IN EXPLAINING AND DEFENDING SWISS INTENTIONS A FROSTY RECEPTION AWAITED THE SWISS DELEGATION AT THE MEETING IN CRETE THIS WEEK OBSERVERS SAID ON THE EVE OF THE CONFERENCE GERMAN TRANSPORT MINISTER MATTHIAS WISSMANN THREATENED SWITZERLAND WITH RETALIATION IF THE BAN GOES AHEAD HE SAID SWISS CAN'T ASK US TO OPEN UP OUR ROADS FOR THEIR TRUCKS ON MONDAY FRENCH TRANSPORT MINISTER BERNARD BOSSON CONDEMNED SWITZERLAND'S GOITALONE ATTITUDE AND ON TUESDAY EUROPEAN UNION TRANSPORT COMMISSIONER ABEL MATUTES WHO ACCUSED SWITZERLAND IMMEDIATELY AFTER ITS REFERENDUM OF BREAKING FAITH WITH EUROPE WAS COOL TO MR OGI'S WISH TO SET A DATE FOR EUSWISS TALKS ON TRAFFIC PROBLEMS NEVERTHELESS MR OGI TOOK TO THE PODIUM TUESDAY DETERMINED TO CONVINCE REPRESENTATIVES FROM ABOUT 40 COUNTRIES THAT SWITZERLAND IS A RELIABLE PARTNER AND HE PRODUCED HIS TRUMP CARD NEAT TO UPDATE SWISS ALPINERAIL INFRASTRUCTURE NEAT PLANS MORE THAN 160 KILOMETERS OF NEW DOUBLETRACK RAILWAY LINES AND MORE THAN 110 KILOMETERS OF TUNNELS INCLUDING THE MOST AMBITIOUS GOTTHARD TUNNEL AFTER NEAT IS COMPLETED RAILTRAVEL TIME ACROSS SWITZERLAND WILL BE SLASHED FOR EXAMPLE TIME BETWEEN ZURICH AND BELLINZONA WILL BE CUT TO 65 MINUTES FROM 148 MINUTES WHILE SWISS ENGINEERS SAY THAT BUILDING THE 50KILOMETERLONG EUROTUNNEL BETWEEN FRANCE AND ENGLAND WAS A FEAT THE GOTTHARD PROJECT COULD PROVE MORE FORMIDABLE GIVEN THE MAMMOTH PRESSURE FROM OVERLAYING ROCK COMPLEX GEOLOGY AND TEMPERATURES WITHIN THE STONE MASS OF UP TO 50 DEGREES CELSIUS FURTHERMORE THE SOFTER AND MORE REGULAR CHANNEL SEDIMENTS WERE EASIER TO BORE THROUGH THAN THE GOTTHARD'S TOUGH GRANITES AND GNEISSES WILL BE ENGINEERS OBSERVE PUSHED BY FEAR OF RETALIATION FROM OTHER EUROPEAN COUNTRIES THE GENERALLY SLOWMOVING SWISS AREN'T LOSING ANY TIME THE FIRST EXPLOSIVE CHARGES HAVE BEEN FIRED FOR THE EXPLORATION OF THE GOTTHARD STRIP PREPARATIONS SHOULD BE FINISHED NEXT YEAR CONSTRUCTION WILL START IN 1996 AND IS EXPECTED TO BE COMPLETED IN ABOUT 2006 MR OGI SAYS SWISS TAXPAYERS WILL FOOT THE GIGANTIC BILL WITHOUT ANY SUBSIDIES EXPECTED FROM THE EU IN DEFENSE OF THE PROJECT MR OGI ADDS WE ARE DOING THIS FOR EUROPE 9403180192 940318 INTELLICALL POSTS LOSS FOR QUARTER AND YEAR ON DROP IN REVENUE DALLAS BAD WEATHER AND DELAYS IN INTERNATIONAL SHIPMENTS LED INTELLICALL INC TO REPORT AS EXPECTED NET LOSSES FOR THE FOURTH QUARTER OF 1993 AND YEAR ON SUBSTANTIAL DECLINES IN REVENUE THE PAYTELEPHONE PRODUCTS AND SERVICES CONCERN REPORTED A NET LOSS OF 21 MILLION OR 25 CENTS A SHARE NARROWING FROM A NET LOSS OF 219 MILLION OR 327 A SHARE IN THE YEAREARLIER PERIOD FOR THE YEAR INTELLICALL REPORTED A NET LOSS OF 13 MILLION OR 17 CENTS A SHARE VERSUS A NET LOSS OF 249 MILLION OR 371 A SHARE IN 1992 THE YEAREARLIER FIGURES FOR BOTH THE QUARTER AND THE YEAR INCLUDE A 22 MILLION CHARGE TO SETTLE SHAREHOLDER LITIGATION ACCOUNT FOR LOSSES RELATED TO ONE OF ITS BILLING AGENTS AND TO ESTABLISH A RESERVE FOR RECEIVABLES REVENUES FOR THE QUARTER DECLINED 42 TO 171 MILLION FROM 295 MILLION FOR THE YEAR THEY DROPPED 46 TO 851 MILLION FROM 158 MILLION THE COMPANY PREVIOUSLY SAID THAT 23 MILLION IN PLANNED FOURTHQUARTER SHIPMENTS OF PAY PHONES TO ARGENTINA AND INDONESIA WERE DELAYED BECAUSE TESTING AND CERTIFICATION IN EACH COUNTRY TOOK LONGER THAN EXPECTED REVENUE ALSO DROPPED BECAUSE BAD WEATHER PARTICULARLY IN THE NORTHEAST CUT PAYPHONE TRAFFIC SINCE MANY PAY PHONES ARE OUTDOORS THE COMPANY ALSO SAID OPERATING COSTS ROSE IN PART BECAUSE OF COSTS ASSOCIATED WITH A PLANNED PUBLIC STOCK OFFERING THAT INTELLICALL HAS NOW WITHDRAWN INTELLICALL SAID IT DOESN'T EXPECT FIRSTQUARTER RESULTS FOR THIS YEAR TO SHOW ANY IMPROVEMENT FROM ITS FOURTH QUARTER 9403180191 940318 POLITICS & POLICY CUSTOMS SERVICE'S STINGS' TO CURTAIL ARMS SALES DRAW BLOOD ITS OWN AS CASES COLLAPSE IN COURT BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON OPERATION EXODUS THE CUSTOMS SERVICE'S EFFORT TO STOP THE ILLEGAL FLOW OF ARMS AROUND THE WORLD HAS LATELY GOTTEN ITSELF AND THE US INTO A PECK OF TROUBLE WIDELY HERALDED STING CASES HAVE FALLEN APART IN COURT AND PLOYS BY CUSTOMS AGENTS TO SNARE FOREIGN BUSINESSMEN AS BAIT FOR FUTURE STINGS HAVE RESULTED IN TWO KIDNAPPING SUITS NOW PENDING AGAINST THE AGENCY IN ADDITION RECENT CASES HAVE DRAWN PROTESTS FROM THE GOVERNMENTS OF CANADA UGANDA AND POLAND WHERE ONE HIGHLY PUBLICIZED STING HELPED PUT A COALITION LED BY FORMER COMMUNISTS BACK IN POWER IN PARLIAMENT RICHARD F MERCIER THE HEAD OF THE CUSTOMS SERVICE'S STRATEGIC INVESTIGATIONS DIVISION WHICH OVERSEES STING CASES SAYS HIS AGENCY'S INCREASING USE OF COOPERATING DEFENDANTS TO SET UP STINGS COMES FROM THE SUCCESS OF EARLIER EXODUS CASES STAGED BY UNDERCOVER CUSTOMS AGENTS THAT INCREASED SUSPICIONS AMONG MAJOR ARMS DEALERS HE SAYS THE AGENCY IS REVIEWING SOME OF THE PROBLEMS IN ITS RECENT CASES BUT INSISTS THAT IT DOESN'T MEAN OUR METHODS ARE INHERENTLY FLAWED BUT JACK BLUM A WASHINGTON LAWYER WHO SPENT YEARS LOOKING INTO CUSTOMS' STINGS AS A FORMER SENATE INVESTIGATOR CHARGES THAT THE AGENCY LACKS CONTROL OVER ITS INVESTIGATORS MANY OF WHOSE EXPLOITS HE SAYS HAVE BEEN VASTLY OVERSOLD MANY OF ITS SUCCESSFUL CASES IN THE ARMS TRADE MR BLUM ASSERTS ARE AGAINST BASICALLY LOWRENT TYPES WHO ARE WANDERING AROUND ON THE MARGINS OF IT THE MOST EMBARRASSING CASE INVOLVES RONALD J HENDRON A SMALLTIME CALIFORNIA BUSINESSMAN WHO WAS CONVINCED BY UNDERCOVER CUSTOMS AGENTS THAT HE COULD BECOME AS HE PUT IT THE GOLDEN BOY OF THE INTERNATIONAL ARMS TRADE AT THE SUGGESTION OF WHAT HE THOUGHT WAS A NEW YORKBASED ORGANIZEDCRIME GROUP MR HENDRON PUT TOGETHER A MULTIMILLIONDOLLAR DEAL FOR AN ARSENAL OF WEAPONS SUPPOSEDLY HEADED FOR IRAQ INCLUDING MIG FIGHTERS 10 TRAINLOADS OF RUSSIAN WEAPONS AND HUNDREDS OF THOUSANDS OF BULGARIAN AND POLISH RIFLES ROCKETS AND GRENADE LAUNCHERS SHADES OF THE MARX BROTHERS THE RESULTING CASE WAS HAILED IN 1992 BY FEDERAL PROSECUTORS AS A BREAKTHROUGH THAT STRUCK AT THE HEART OF ARMS PROLIFERATION IN EASTERN EUROPE BUT WHEN THE CASE WAS TRIED IN US DISTRICT COURT IN BROOKLYN IT LOOKED MORE LIKE A PLOT DESIGNED BY THE MARX BROTHERS AFTER THEY SCHEDULED THE ARMS DEAL IN A FRANKFURT HOTEL SUITE CUSTOMS AGENTS WERE STUNNED TO LEARN THAT GERMAN LAW FORBADE THEM TO VIDEOTAPE OR RECORD THE MEETING BUT THEY WENT AHEAD ANYWAY MEANWHILE UNBEKNOWNST TO THE AGENTS THE TRANSLATOR THEY USED AT THE HOTEL MEETINGS ADLIBBED IN POLISH CREATING HIS OWN VERSION OF THE DEAL AND CRACKED JOKES THAT INSULTED THE RUSSIANS BULGARIAN AGENTS SMELLING SOMETHING FISHY FADED AWAY SO DID THE RUSSIANS LAST SUMMER AS PROSECUTORS PREPARED TO TRY FIVE POLES THEY NABBED IN THE CASE MR HENDRON WHO PLEADED GUILTY TO A CONSPIRACY CHARGE AND AGREED TO BE THE STAR WITNESS PUBLISHED HIS MEMOIRS IN POLAND CAUSING A SENSATION THEY STATE THAT HE NEVER TOLD THE POLES THE ARMS WERE GOING TO IRAQ THE FACT THAT MADE THE DEAL ILLEGAL THE PROSECUTORS STUMBLED ON THOUGH REFUSING TO CALL MR HENDRON AS A WITNESS IN NOVEMBER A JURY ACQUITTED THE POLES WHO HAD BEEN IMPRISONED FOR 19 MONTHS MR MERCIER CUSTOMS' TOP INVESTIGATOR REFERS QUESTIONS ABOUT THE CASE TO THE AGENCY'S NEW YORK OFFICE WHERE OFFICIALS DECLINE TO COMMENT BUT ITS REPERCUSSIONS WERE FELT ALL THE WAY TO WARSAW THIS CASE WAS USED BY THE LEFT SIDE OF THE POLITICAL SPECTRUM IN POLAND TO CREATE ANTIAMERICAN FEELINGS SAYS JERZY SURDYKOWSKI POLAND'S CONSUL GENERAL IN NEW YORK HE NOTES THAT RESULTING ANTIAMERICAN DEMONSTRATIONS IN WARSAW STAGED JUST BEFORE ELECTIONS IN SEPTEMBER HELPED SHIFT THE BALANCE IN PARLIAMENT ANOTHER MUCHTOUTED 1992 CUSTOMS STING LURED TWO UGANDA OFFICIALS INCLUDING INNOCENT BISANGWAMBUGUJE AN AIDE TO THE NATION'S PRESIDENT INTO AN ARMS DEAL NEAR ORLANDO FLA UGANDA HAD TO PUT A LIEN ON ITS CONSULATE IN NEW YORK TO MAKE HIS 1 MILLION BAIL IN THE CASE WHICH INVOLVED A SUPPOSEDLY ILLEGAL PURCHASE OF 18 MILLION OF TOW MISSILES BUT THE CASE COLLAPSED IN COURT LAST YEAR AFTER IT WAS DETERMINED THAT THE UGANDANS THOUGHT THEY WERE PURSUING A LEGITIMATE DEAL THEY HAD STARTED WITH THE STATE DEPARTMENT IT WAS A VERY VERY PAINFUL EXPERIENCE FOR THE ENTIRE GOVERNMENT OF UGANDA SAYS PAUL REICHLER A WASHINGTON ATTORNEY WHO REPRESENTED THE AFRICAN NATION THE UGANDANS HOWEVER PROBABLY CAN'T MATCH THE RAGE OF KENNETH WALKER A CANADIAN BUSINESSMAN WHO CLAIMS HE HAD HIS ENTIRE LIFE DESTROYED BY A CUSTOMS STING INVOLVING A PROPOSED SALE OF 1000 PISTOLS AFTER HE REFUSED TO GO TO A MEETING IN NEW YORK UNDERCOVER CUSTOMS AGENTS SENT HIM PLANE TICKETS TO THE BAHAMAS VIA NEW YORK THEN ARRESTED HIM AS HE WAS CHANGING PLANES AT LA GUARDIA AIRPORT CONFRONTED WITH SOME OF THE SAME AGENTS INVOLVED IN THE HENDRON CASE MR WALKER SAYS HE REFUSED THEIR DEMANDS THAT HE COOPERATE WITH TEAM AMERICA AND SET UP STING OPERATIONS THE CANADIAN SAYS HE LOST HIS HOME AND HIS COMMODITIES BROKERAGE BUSINESS AND HIS FAMILY WOUND UP ON WELFARE AS A RESULT OF BEING DETAINED IN NEW YORK FOR FOUR MONTHS NOW BACK IN CANADA MR WALKER IS SUING CUSTOMS FOR 95 MILLION CHARGING FRAUD DECEIT AND ABDUCTION CANADA HAS PROTESTED ON HIS BEHALF AND FOR THE FIRST TIME IN HISTORY HAS SUMMARILY REFUSED A US REQUEST TO EXTRADITE HIM A LOWER COURT DENIED A US DEFENSE OF SOVEREIGN IMMUNITY IN MR WALKER'S CIVIL SUIT WHICH IS PENDING BEFORE CANADA'S SUPREME COURT MR WALKER INSISTS HIS ROLE IN THE PISTOL DEAL WAS LEGAL PLUS HE ARGUES AS A CANADIAN HE HAS NO OBLIGATION TO US FOREIGN POLICY LAWS YOU ARE NOT THE POLICEMAN TO THE WORLD ANOTHER CASE INVOLVING HOSSEIN ALIKHANI A CYPRIOT BUSINESSMAN ALLEGEDLY ABDUCTED BY CUSTOMS IN THE BAHAMAS AND FLOWN TO FLORIDA TO MAKE STING CASES IS PENDING IN MIAMI FINALLY THERE IS THE SAGA OF ROBERT WHEELER AN OAKLAND CALIF COMPUTER SALESMAN HE WAS ENTICED BY EDDIE HAAK A FASTTALKING DUTCHMAN INTO A 1990 DEAL TO SELL A SUPERCOMPUTER WHEN TOLD THE COMPUTER WAS GOING TO BULGARIA THEN A PROHIBITED DESTINATION MR WHEELER SAYS HE HAD HIS LAWYER CALL CUSTOMS IMMEDIATELY CUSTOMS AGENTS CAME AND ARRESTED MR WHEELER MR WHEELER WAS LATER CONVICTED BY A MIAMI JURY AFTER MR HAAK TESTIFIED HE HAD TOLD MR WHEELER ABOUT THE BULGARIAN CONNECTION EARLIER OUT OF DESPERATION MR WHEELER FLEW TO EUROPE TO PLEAD HIS INNOCENCE BEFORE MR HAAK'S WIFE SAYING THAT HE FACED A FIVEYEAR JAIL TERM AND WAS A SINGLE PARENT WITH TWO YOUNG DAUGHTERS IT WORKED MR HAAK WHO HAD AGREED TO HELP CUSTOMS SET UP STINGS AFTER HIS ARREST IN AN EARLIER CASE WROTE A LETTER SAYING HE MAY HAVE TESTIFIED INCORRECTLY UNDER PRESSURE OF THE US CUSTOMS ADDING I WAS AFRAID THAT THEY CUSTOMS WOULD NOT LET ME GO OUT OF THE USA NOW MR WHEELER HAS BEEN GRANTED A NEW TRIAL MR MERCIER SAYS THAT HE CAN'T COMMENT ON THE WHEELER CASE OR ON OTHERS IN WHICH SOME ASPECTS ARE STILL PENDING BUT HE SAYS THAT INTERNATIONAL FLAPS GENERALLY COME WITH THE TERRITORY A LAWENFORCEMENT OFFICER CANNOT BE HAMPERED BY HAVING THESE CONCERNS OVERRIDE HIS SWORN RESPONSIBILITY HE INSISTS 9403180190 940318 GOP GROUP DISPUTES PENDING SEC RULE TO END PAY TO PLAY' WASHINGTON THE REPUBLICAN NATIONAL COMMITTEE DENOUNCED A PROPOSAL PENDING BEFORE THE SECURITIES AND EXCHANGE COMMISSION DESIGNED TO END THE PAY TO PLAY PRACTICE IN THE MUNICIPALBOND MARKET IN A COMMENT LETTER FILED WITH THE SEC THE REPUBLICANS PREDICTED THE PROPOSED RULE WON'T SURVIVE CONSTITUTIONAL SCRUTINY AND CALLED FOR ITS IMMEDIATE WITHDRAWAL SEC CHAIRMAN ARTHUR LEVITT SAID RECENTLY HE BELIEVES THE RULE WILL PASS CONSTITUTIONAL MUSTER AND THAT THE SEC'S LAWYERS SHARE THIS VIEW DRAFTED BY THE MUNICIPAL SECURITIES RULEMAKING BOARD THE RULE WOULD BAR A BOND DEALER FROM DOING BUSINESS WITH A JURISDICTION WITHIN TWO YEARS OF MAKING A POLITICAL CONTRIBUTION TO AN OFFICIAL OF THE JURISDICTION THE SEC'S COMMENT PERIOD ON THE PROPOSAL JUST ENDED AND IT IS EXPECTED TO ACT ON THE RULE BEFORE LONG NOTING THE RULE WOULD COVER CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS RUNNING FOR FEDERAL OFFICE AS WELL AS INCUMBENT STATE AND LOCAL OFFICIALS AND CANDIDATES FOR STATE AND LOCAL OFFICE THE REPUBLICAN NATIONAL COMMITTEE SAID IN A COMMENT LETTER THAT FEDERAL LAW GIVES THE FEDERAL ELECTION COMMISSION EXCLUSIVE CIVIL JURISDICTION OVER FEDERAL CAMPAIGNFINANCE ACTIVITY IT SAID THAT BECAUSE INCUMBENTS IN CONGRESS COULD TAKE POLITICAL GIFTS FROM BOND DEALERS WHILE STATE OR LOCAL OFFICIALS CHALLENGING FEDERAL LAWMAKERS COULDN'T THE RULE RAISES SERIOUS EQUAL PROTECTION' CONSTITUTIONAL CONCERNS THE MSRB HAS SAID ITS PROPOSAL IS IMMUNE FROM CONSTITUTIONAL CHALLENGE BECAUSE THE BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT IS NOT A GOVERNMENT ACTOR BUT THE NATIONAL ASSOCIATION OF STATE TREASURERS CALLED THIS STANCE DISINGENUOUS AND TOLD THE SEC THAT THE PROPOSAL WILL HAVE TO SATISFY CONSTITUTIONAL SCRUTINY ATTEMPTS TO ASCERTAIN THE DEMOCRATIC NATIONAL COMMITTEE'S VIEWS ON THE PROPOSAL WEREN'T IMMEDIATELY SUCCESSFUL 9403180189 940318 LEISURE & ARTS MISSIONARY ON THE MOUNTAIN BY MARCUS W BRAUCHLI TAOSHAN CHINA I AM STANDING AT THE TOP OF A FROZEN HILLSIDE IN NORTHERN MANCHURIA MY SKI TIPS POINTING STRAIGHT DOWN WIND CHAFES MY FACE STANDING ON MY BINDINGS IN HER TENNIS SHOES IS CHEN MEIYING A 22YEAROLD WAITRESS FROM SUBTROPICAL GUANGDONG PROVINCE SHE HAS NEVER SEEN SNOW THIS IS HER FIRST TIME ON SKIS MINE OR ANYONE ELSE'S AS WE START TO SLIDE OVER THE CRUSTY SNOW SHE EMITS A PIERCING SCREAM TEN SECONDS LATER THE RUN IS OVER AND WE ARE IN A HEAP AGAIN AGAIN SHE YELLS AN INSTANT CONVERT TO SKIING I HAVE BECOME A SKI MISSIONARY BY ACCIDENT MANY PEOPLE IN CHINA ARE GETTING RICH AND TO JUDGE BY THE PLUTOCRATS OF ASPEN AND GSTAAD THE RICH LIKE TO SKI SO I SET OUT IN SEARCH OF THE SLOPES OF THE SINONOUVEAU RICHE WHICH ARE IN HEILONGJIANG PROVINCE THE GREAT NORTHERN WILDERNESS CHINA'S LITTLE PATCH OF SIBERIA I DID NOT EXPECT ST MORITZ I HAD BEEN FOREWARNED BY JOHN CROSSMAN A SHANGHAI STOCKBROKER HE WENT ONCE TO HEILONGJIANG'S YABULI A ONELIFT ONERUN AREA WHERE CHINA HOPES TO HOST THE 1996 WINTER ASIAN GAMES THE CITY OF YABULI IF WE CAN CALL IT THAT IS 20000 PEOPLE BURNING AS MUCH COAL AS FAST AS THEY CAN TO ESCAPE THE BITTER COLD MR CROSSMAN SAID THE DORMITORY AT THE SKIAREA BASE IS NOT TOTALLY UNLIKE A PRISON CAMP I DON'T SEE WHY ANYONE WOULD GO SKIING IN CHINA HE ADDED YOU'D BE A FOOL I DECIDE TO AVOID YABULI AND HEAD TO A HILL ABOUT AN HOUR'S TAXI RIDE FROM HARBIN THE PROVINCIAL CAPITAL THE SKIING I'M ASSURED BY A HOTEL PORTER IN KNIT HAT WITH A PICTURE OF A SKIER WORKED INTO IT IS THE BEST AROUND IT MAY BE BUT IT'S NOTHING MORE THAN A CLEARCUT 165FOOT HILLSIDE THAT BUSLOADS OF HARBIN TOURISTS WALK UP THEN SCHUSS DOWN ON BATTERED SKIS MOST STOP BY COLLIDING WITH TREES OR WITH ONE OF THREE CONCRETE PICNIC TABLES AT THE BASE THE ONLY EXPERIENCED SKIER IS 35YEAROLD WANG CHE A TOURBUS DRIVER HIS FORM ISN'T BAD THOUGH HE HAS A HABIT OF COLLAPSING IN PANIC EVERY FEW MINUTES WHEN THE BEEPER HE WEARS ON HIS BELT GOES OFF HE IS A MAN AND HE IS VERY BRAVE SAYS 21YEAROLD LI RONG A STUDENT SHE TRIES ONE RUN AND CONCLUDES THE SHOES ARE TOO HEAVY AND THE DANGER IS TOO MUCH SO IS THE BOREDOM I DECIDE TO TRY THE SLOPES HERE AT TAOSHAN A FOURHOUR TRAIN JOURNEY AWAY THE HOTEL PORTER DESCRIBES IT AS OUR MOST FAMOUS SKI MOUNTAIN THERE ARE SEVEN IN MY TOUR GROUP SIX FROM GUANGDONG AND ME ABOARD THE TRAIN THE SOUTHERNERS ARE EASY TO DISTINGUISH FROM THEIR NORTHERN COUNTRYMEN WHO SIT SULLENLY IN PADDED ARMY GREATCOATS THE SOUTHERNERS SPEAK RAUCOUS CANTONESE EAT PEELED TANGERINES AND WEAR 24KARAT GOLD JEWELRY NIKE SHOES AND BRIGHT DOWNFILLED CLOTHING MY COMPANIONS ARE CHINESE YUPPIES MANY WORK FOR FOREIGN FIRMS AND HOLD MORE THAN ONE JOB KUANG YU A 23YEAROLD GUIDE FROM GUANGDONG ALSO WORKS AS A PHOTOGRAPHER AND PLAYS IN A BAND WHILE THE 4700YUAN 540 COST OF A TRIP HERE EQUALS NINE MONTHS' SALARY FOR A HARBIN WORKER THE SOUTHERNERS SAY IT'S ONLY A COUPLE MONTHS' SAVINGS WE HAVE MORE MONEY SAYS MR KUANG THEY ALSO SEEM TO HAVE MORE FUN A 26YEAROLD CONTAINERTRUCK DRIVER FROM THE SHENZHEN SPECIAL ECONOMIC ZONE HAS BROUGHT HIS 22YEAROLD GIRLFRIEND WHAT INTERESTS HIM HE SAYS ISN'T THE SKIING ENJOY YOURSELF TONIGHT HE SAYS IN ENGLISH IT IS DUSK BY THE TIME WE ARRIVE AT TAOSHAN AN INDUSTRIAL TOWN WHERE THE SNOW IS GRAY FROM COAL DUST WE STAY AT TAOSHAN VILLA A DESIGNATED ONESTAR ABODE MODELED ON A FACTORY VILLAGE WITH BIG BUILDINGS AND BLACKSPEWING SMOKESTACKS SURROUNDED BY SMALLER OUTLYING BUILDINGS BUT I'M ENCOURAGED THE LOGO ON MY TAOSHAN VILLA TOOTHBRUSH A SKIER THE HOTEL'S DINNER BUFFET FEATURES BEAR'S PAW AND A BRACE OF STRANGLED PHEASANTS A DELIGHTED ROAR GOES UP FROM THE TOURISTS WHO DEMAND BRAISED BEAR PAW AT ABOUT 20 A PORTION AND STEAMING PHEASANT HOT POT THIS WILL MAKE US SKI BETTER PROMISES YUEN LIZHEN A 26YEAROLD GUANGDONG TELEPHONE TECHNICIAN THE NEXT MORNING WE PILE INTO A BUS THEN SET OUT THROUGH A BIRCH FOREST THE SUN IS OUT WHEN WE DRAW INTO A CLEARING THE MOUNTAINSIDE GLITTERS WITH FRESH SNOW SOMEBODY HAS CLEARED THE TREES AND CARVED DEEP VERTICAL RUTS TO PREVENT SKIERS FROM TURNING WHEN THEY SHOULD GO STRAIGHT DOWN THERE IS EVEN A LIFT A LARGE BLUEANDWHITE BOAT LABELED THE SKI BOAT ATTACHED TO A DIESEL MOTOR THAT PULLS IT TO THE TOP OF THE 330FOOT HILL SKIING ANNOUNCES XU XUEBIN A GUIDE SHE POINTS AT ME YOU SHOW US OBEDIENTLY I BUCKLE MY BOOTS THEN CLIMB TO THE TOP OF THE HILL WITHOUT WAITING FOR THE SKI BOAT I STEP INTO MY BINDINGS AND START MY 20SECOND RUN AS I THUD OVER ONE RUT AND INTO THE NEXT I FLASH A CONFIDENT SMILE AT WOULDBE SKIERS WHO SEEM TO BE JEALOUSLY ADMIRING MY FORM TO MY SURPRISE I SEE THEY ARE POINTING PISTOLS MY WAY AS SOON AS I PASS BY I HEAR SEVERAL REPORTS SHOOTING PISTOLS IT TURNS OUT IS ONE WAY TO KILL TIME BETWEEN RUNS OTHERS ALSO SKI A YOUNG WOMAN BARRELS BY WHILE HER BOYFRIEND A MEMBER OF THE ECONOMIC POLICE YELLS AT HER BEND YOUR KNEES AFTER SHE DISAPPEARS IN A CLOUD OF SNOW HE GRUMBLES TOO DANGEROUS AND SETS OUT AFTER HER ON A SLED SEVERAL YOUNG MEN HAVE BORROWED SKIS FROM THE SKI BOAT OPERATOR AND ARE SPEEDRACING DOWN THE RUTS I JOIN IN AND AT THE BOTTOM MEET 25YEAROLD LEON LEE RESPLENDENT IN A BLUE SPYDER SKI OUTFIT AND SCOTT GOGGLES YOU ARE A SKIER HE OBSERVES DO I LOOK LIKE A SKIER I AM ALSO A SKIER THEN WHY ARE YOU HERE I AM A TOUR GUIDE HE EXPLAINS I AM INTRODUCING SOUTHERN PEOPLE TO THE COLD NORTH THEY WANT TO TRY THE COLD AND SKIING INDEED ONE OF LEON'S CHARGES AN EIGHTYEAROLD BOY HAS HIS EYE ON MY SKIS WOULD I GIVE HIM A RIDE ON MY SKIS I OBLIGE WHEN I HIKE BACK TO THE HALFWAY POINT A YOUNG WOMAN ASKS FOR A RIDE I OBLIGE AGAIN SUDDENLY I AM GIVING SKI RIDES TO EVERYBODY INCLUDING MS CHEN THE WAITRESS FOR THE REMAINDER OF THE DAY I DO NOTHING BUT GIVE RIDES LIKE A PONY AT A CARNIVAL IT IS NOT THE SKIING I HAD HOPED FOR MR BRAUCHLI COVERS ASIA FOR THE WALL STREET JOURNAL 9403180188 940318 COMMODITIES NATURAL GAS FUTURES PRICES SLIP ON DATA SHOWING THAT SUPPLIES FELL LESS THAN EXPECTED LAST WEEK BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL NATURAL GAS FUTURES PRICES SLIPPED YESTERDAY BASED ON STATISTICS SHOWING THAT LESS OF THE FUEL WAS USED IN RECENT DAYS THAN ANTICIPATED ANALYSIS RELEASED BY THE AMERICAN GAS ASSOCIATION SHOWED THAT GAS STORAGE IN THE US LAST WEEK DECLINED BY ONLY 11 BILLION CUBIC FEET MARKET PARTICIPANTS HAD BEEN EXPECTING SUPPLIES TO FALL BY 50 BILLION CUBIC FEET TO 75 BILLION CUBIC FEET IT WAS A MUCH SMALLER DRAWDOWN THAN WE'VE SEEN IN THE LAST FEW WEEKS SAID JOHN SAUCER ENERGY ANALYST WITH SMITH BARNEY SHEARSON INC IN HOUSTON AS A RESULT THE PRICE OF NATURAL GAS FOR APRIL DELIVERY FELL BY 39 CENTS PER MILLION BTUS TO 2124 PRICES THIS WEEK HAVE BEEN VOLATILE WITH THE APRIL CONTRACT TRADING AS LOW AS 203 PER MILLION BTUS SEVERAL DAYS AGO TO AS HIGH AS 218 DURING WEDNESDAY'S TRADING SESSION MR SAUCER AND OTHER MARKET EXPERTS EXPECT THE FUTURES PRICE OF GAS TO CONTINUE TO EASE DURING THE NEARTERM THEY POINT OUT THAT NATURAL GAS SOLD IN THE CASH OR SPOT MARKET IS SELLING AT A MUCH LOWER LEVEL AND THE FUTURES PRICES WILL PROBABLY DECLINE TO A LEVEL CLOSER TO THE CASH PRICE BUT EVEN AS THE FUTURES PRICE DECLINES TRADERS EXPECT THE PRICE OF NATURAL GAS IN THE CASH MARKET WHICH HAS BEEN EDGING UP SLOWLY IN THE LAST FEW DAYS TO CONTINUE TO STRENGTHEN AS USERS LOAD UP ON WHAT THEY CONSIDER BARGAINBASEMENT PRICES ANALYSTS BELIEVE THAT SOME USERS HAVE STARTED TO RESTOCK FOR NEXT FALL ALREADY TYPICALLY RESTOCKING OCCURS DURING THE SUMMER MR SAUCER BELIEVES THAT FOR THE NEARTERM GAS PRICES IN THE FUTURES AND CASH MARKETS WILL CONVERGE AND APPROACH A LEVEL OF ABOUT 205 PER MILLION BTUS IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF SOYBEAN FUTURES CONTRACTS SLIPPED AMID REPORTS OF BENEFICIAL RAINS IN SOYBEANGROWING REGIONS OF ARGENTINA SOUTH AMERICA IS BEGINNING TO HARVEST WHAT IS WIDELY EXPECTED TO BE A RECORD SOYBEAN CROP IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR MAY DELIVERY DROPPED THREE CENTS A BUSHEL TO SETTLE AT 6915 A BUSHEL CORN PRICES SETTLED MIXED TRADERS ARE BEGINNING TO SPECULATE THAT THE CORN HARVEST IN SOUTH AFRICA WON'T BE AS BIG AS FORECAST REPORTS FROM SOUTH AFRICA A FEW WEEKS AGO HAD PUT THE SIZE OF THE MAY HARVEST AT ROUGHLY 550 MILLION BUSHELS WHICH WOULD BE A BUMPER CROP NEW REPORTS SUGGEST THE COMING HARVEST THERE MIGHT AMOUNT TO ROUGHLY 490 MILLION BUSHELS WHEAT PRICES SETTLED MOSTLY LOWER DESPITE CONCERNS ABOUT HIGH WINDS IN SOUTHERN PLAINS STATES SUCH AS KANSAS WHERE THE WINTER WHEAT CROP IS IN THE EARLY STAGES OF GROWTH TRADERS ARE CONCERNED THAT THE WINDS WHICH WERE FORECAST FOR YESTERDAY AS HIGH AS 50 MILES AN HOUR MIGHT DRY OUT THE TOP SOIL PRECIOUS METALS GOLD FUTURES PRICES FELL ON PROFITTAKING AND SELLING BY BIG INVESTORS SUCH AS COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY WAS DOWN 260 TO 383 GOLD HAS TRADED IN A NARROW PRICE RANGE FOR MONTHS PUSHED HIGHER BY INFLATION FEARS AND THEN BEATEN BACK BY COMMODITYFUND SELLING GOLD TRADERS ANALYSTS SAY ALSO REMAIN WORRIED BY REMARKS FROM FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN A FEW WEEKS AGO THAT THE FED WATCHES GOLD PRICES AS AN INDICATOR OF INFLATION AND WON'T HESITATE TO RAISE INTEREST RATES TO CURB INFLATION WHEN IT OCCURS COCOA COCOA'S STRONG UPWARD PRICE MOVE IN RECENT WEEKS EXPERIENCED A SHARP CORRECTION AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE COCOA FOR MAY DELIVERY FELL 27 TO 1216 A TON THE PRICE OF THE ACTIVELY TRADED MAY CONTRACT ROSE AS HIGH AS 1252 ON MARCH 15 WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH SAID THE RALLY HAS STALLED IN RECENT DAYS BECAUSE PRICES HAVE REACHED LEVELS AT WHICH INDUSTRIAL CONSUMERS OF COCOA ARE BALKING AT BUYING YET MR O'NEILL SAID THE OUTLOOK FOR COCOA REMAINS POSITIVE WITH WORLD PRODUCTION LIKELY TO OUTPACE CONSUMPTION BY ABOUT 150000 TONS OVER THE LONG TERM HE SAID HE EXPECTS COCOA PRICES TO CONTINUE THEIR UPWARD TREND 9403180187 940318 A HOLDUP IN TOKYO HAND OVER ALL VALUABLES STARTING WITH RICE' BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S RICE STOCKS ARE DOWN SO JAPANESE RICE STOCKS ARE GOING UP WITH THIS NATION'S SUPPLY OF RICE DWINDLING BECAUSE OF LAST YEAR'S BAD WEATHER MANY INVESTORS HAVE BEEN MAKING CAPITAL GRAINS INVESTMENTS THE SHARE PRICES OF JAPAN'S RICERELATED COMPANIES MANY WITH SOLID INVENTORIES OF THE SACRED GRAIN HAVE BEEN SKYROCKETING DUE TO A NATIONAL PANIC OVER TIGHT SUPPLIES LINES OUTSIDE SUPERMARKETS STILL CARRYING THE TREASURED NATIONAL PRODUCT STRETCH FOR BLOCKS ROBBERIES OF NATIVE RICE HAVE BECOME COMMONPLACE AND GOVERNMENTPROVIDED FOREIGN ALTERNATIVES ARE NEITHER SUFFICIENTLY STICKY NOR BLANDTASTING ENOUGH FOR LOCAL PALATES THE RICE PROBLEM HOTLINE SET UP BY AN OSAKA CONSUMER GROUP WAS FLOODED WITH GRIPES ABOUT RICE GOUGING REPORTEDLY AS HIGH AS 73 A POUND FOR THE GOOD STUFF AND PRIVATE STOCKPILING CONSUMERS ARE STOCKING UP AHEAD OF A MANDATORY FOREIGN RICEJAPANESE RICE BLENDING PROGRAM JAPAN'S EGALITARIAN GOVERNMENT THINKS EVERYONE SHOULD EAT HIS OR HER SHARE OF THE ALIEN CEREAL CONSUMERS DON'T AGREE MY SISTER LINED UP FOR TWO HOURS FOR RICE SAYS TOMOKO AIKAWA A SECURITIES COMPANY EMPLOYEE IN TOKYO MY MOM HAS BEEN ASKING ALL HER FRIENDS FOR JAPANESE RICE MS AIKAWA'S COLLEAGUES IN THE STOCK MARKET MEANWHILE HAVE FOUND WAYS TO MAKE THE RICE SHORTFALL A STOCK WINDFALL NOT A BAD RETURN BUT NOTHING COMPARED WITH THE 13 GAIN IN SHARES OF SHOWA SANGYO CO WHICH MAKES A PUNGENT RICEFLAVORING SAUCE THAT CAN SMOTHER SUPPOSEDLY SMELLY THAI RICE SHARES IN HONEN CORP ANOTHER SAUCE MAKER HAVE GAINED 10 IN THE PAST TWO WEEKS THERE'S EVEN A LET THEM EAT BREAD STOCK PLAY SOME TRADERS ARE PUSHING YAMAZAKI BAKING CO ON THE ASSUMPTION THAT JAPANESE BREAD WHICH LIKE JAPANESE RICE IS GENERALLY STICKY AND BLAND WILL BE FAVORED OVER FOREIGN RICE THE STOCK PRICE HASN'T MOVED BUT THE COMPANY CONFIRMS THAT SALES THIS WEEK ARE 3 ABOVE NORMAL AND CLIMBING WELL JAPAN'S METEOROLOGICAL AGENCY RECENTLY PREDICTED ANOTHER COLD SUMMER THIS YEAR 9403180186 940318 YOUR MONEY MATTERS WEEKEND REPORT BEARISH BUT NERVY TRY THESE MARKET PLAYS BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL SURE THE MARKETS HAVE BEEN SHAKY LATELY BUT THERE ARE PLENTY OF WAYS TO MAKE MONEY EVEN WHEN STOCK PRICES DECLINE AND INFLATION HEATS UP SO LONG AS YOU'VE GOT THE WALLET AND THE STOMACH FOR THE RISKS INVOLVED THERE ARE MORE DOWNSIDE STRATEGIES AVAILABLE FOR INDIVIDUAL INVESTORS THAN EVER BEFORE SAYS BERNARD SCHAEFFER EDITOR OF THE OPTION ADVISOR A CINCINNATI NEWSLETTER BUT MANY CAN BE EXPENSIVE YOU CAN PROFIT FROM FALLING STOCK PRICES BY SHORT SELLING INDIVIDUAL STOCKS OR EVEN A LIMITED NUMBER OF MUTUAL FUNDS OR YOU BUY PUT OPTIONS ON INDIVIDUAL STOCKS OR 36 DIFFERENT MARKET INDEXES IF YOU'RE CONVINCED INFLATION IS REALLY GETTING READY TO SOAR YOU CAN BUY GOLD OR GOLD FUNDS OR COMMODITYBASED STOCKS SUCH AS ALUMINUM OR LUMBER COMPANIES AND IF YOU'D RATHER HAVE A MANAGER DO ALL OF THE ABOVE ON YOUR BEHALF YOU CAN BUY ONE OF THE HANDFUL OF MUTUAL FUNDS THAT SPECIALIZE IN MAKING MONEY IN A BEAR MARKET BUT THESE AREN'T PLAYS FOR THE FAINT OF HEART OR ANYONE WHO CAN'T AFFORD TO LOSE MONEY THE REST OF US WILL BE CONTENT JUST TO WATCH SHORT SELLING SHORT SELLERS BORROW A STOCK FROM A BROKER AND IMMEDIATELY SELL IT HOPING THE PRICE WILL DECLINE EVENTUALLY THEY HAVE TO BUY SHARES TO REPLACE THE ONES THEY BORROWED BUT IF THE PRICE DROPS ENOUGH IN THE MEANTIME THEY MAKE A PROFIT THE DANGER IS THAT THE PRICE WILL RISE INSTEAD OF FALL CAUSING INVESTORS TO LOSE MONEY AND THE SIZE OF THE LOSS IS POTENTIALLY UNLIMITED DURING THE PAST THREE YEARS AS THE STOCK MARKET HAS MOVED HIGHER AND HIGHER EVEN THE PROS WHO SPECIALIZE IN SHORT SELLING HAVE SUFFERED BIG LOSSES STILL SOME INVESTMENT PROFESSIONALS SAY SHORT SELLING CAN BE WORTH A TRY EVEN THOUGH THE DOW JONES INDUSTRIAL AVERAGE IS ROCKING ALONG LOTS OF STOCKS HAVE HAD THEIR PRIVATE BEAR MARKETS SAYS STAN WEINSTEIN EDITOR OF THE PROFESSIONAL TAPE READER A HOLLYWOOD FLA NEWSLETTER THERE IS MONEY TO BE MADE HERE IN ADDITION TO INDIVIDUAL STOCKS INVESTORS CAN ALSO SELL SHORT A LIMITED NUMBER OF MUTUAL FUNDS JACK WHITE CO A SAN DIEGO DISCOUNT BROKER SAYS 50 OF THE 350 MUTUAL FUNDS IT SELLS CAN BE SHORTED BUT AVAILABILITY OF FUNDS VARIES DAY BY DAY FIDELITY INVESTMENTS ALSO OFFERS SHORT SELLING ON SOME OF ITS SECTOR FUNDS THROUGH ITS FIDELITY BROKERAGE UNIT BUT SELLING SHORT IS A LONG SHOT ON AVERAGE THE STOCK MARKET IS UP 60 OF THE TIME SAYS TOM STEVENS CHIEF INVESTMENT OFFICER FOR WILSHIRE ASSOCIATES A SANTA MONICA CALIF PENSIONCONSULTING FIRM WHEN YOU GO SHORT YOU'RE FIGHTING THE UPWARD TREND PUT OPTIONS INVESTORS CAN ALSO MAKE MONEY ON A MARKET DECLINE BY BUYING PUT OPTIONS ON INDIVIDUAL STOCKS OR VARIOUS INDEXES A PUT OPTION GIVES THE HOLDER THE RIGHT BUT NOT THE OBLIGATION TO SELL A STOCK OR AN INDEX OF STOCKS AT A FIXED STRIKE PRICE FOR A SPECIFIED PERIOD OF TIME PUT OPTIONS GAIN IN PRICE WHEN THE UNDERLYING STOCKS OR INDEXES DECLINE COMPARED WITH SHORT SELLING ONE ADVANTAGE OF PUT OPTIONS IS THAT ALL YOU CAN LOSE IS THE COST OF THE OPTION ITSELF THE SOCALLED PREMIUM THAT PREMIUM CAN BE EXPENSIVE THOUGH INDEX PUTS ARE EXTREMELY POPULAR FOR PORTFOLIO PROTECTION RIGHT NOW SAYS MR SCHAEFFER THE CINCINNATI OPTIONS PRO AND BECAUSE THEY ARE SO POPULAR THEY ARE EXTREMELY EXPENSIVE ON AN ABSOLUTE AND HISTORICAL BASIS HARRISON ROTH SENIOR OPTIONS STRATEGIST FOR NEW YORK BROKER COWEN & CO SAYS EVEN AGGRESSIVE TRADERS SHOULDN'T SPEND MORE THAN 5 OF THE VALUE OF THEIR PORTFOLIOS ON PUT OPTIONS HE ALSO CAUTIONS THAT USING PUTS REQUIRES CAREFUL MONITORING OF THE UNDERLYING STOCKS BY THE INVESTOR OR A BROKER GOLD STOCKS OR GOLD FUNDS WANT TO BET THAT INFLATION IS REALLY HEATING UP THE EXPERTS SEEM DIVIDED BUT IF YOU FEEL INFLATION IS CLIMBING YOU COULD BUY GOLDMINING STOCKS OR GOLD FUNDS IN INFLATIONARY TIMES INVESTORS HAVE TRADITIONALLY TURNED TO GOLD AS A WAY TO PRESERVE THEIR PURCHASING POWER BUT DON'T BUY GOLDMINING SHARES ON THE ASSUMPTION GOLD WILL AUTOMATICALLY RISE IN A STOCKMARKET DOWNTURN GOLD CAN GO DOWN IN BEAR MARKETS ALONG WITH STOCKS SAYS STANLEY SALVIGSEN CHAIRMAN OF COMSTOCK PARTNERS A NEW YORK INVESTMENT FIRM THAT SPECIALIZES IN BEARMARKET STRATEGIES IN THE 1987 STOCKMARKET CRASH GOLD SHARES FELL ALONG WITH STOCKS BEARMARKET FUNDS A SMALL NUMBER OF MUTUAL FUNDS HAVE TAILORED THEIR STRATEGIES TO MAKING MONEY IN A STOCKMARKET DECLINE THE LARGEST ARE DREYFUS CAPITAL VALUE FUND A A LOAD FUND AND THE NOLOAD ROBERTSON STEPHENS CONTRARIAN FUND THESE FUNDS HOLD VARYING AMOUNTS OF GOLDMINING STOCKS SHORTS ON HIGHFLYING US STOCKS CASH PUT OPTIONS ON INDEXES AND INFLATION PLAYS IN STOCKS LIKE ALUMINUM LUMBER AND COPPER COMPANIES DREYFUS CAPITAL VALUE FUND A WITH 426 MILLION IN ASSETS HAS THE LONGEST TRACK RECORD AND PROVED THAT A BEARMARKET STRATEGY COULD WORK UNDER CERTAIN CONDITIONS IN 1987 THE YEAR OF THE CRASH THE FUND MANAGED BY MR SALVIGSEN AND OTHERS HAD A TOTAL RETURN OF 34 COMPARED WITH 5 FOR THE STANDARD & POOR'S 500STOCK INDEX SINCE THEN THE FUND FOR THE MOST PART HAS LAGGED BEHIND THE S&P 500 INDEX SO FAR THIS YEAR IT'S OFF 14 ROBERTSON STEPHENS CONTRARIAN FUND WHICH OPENED IN JUNE HAS ALREADY GATHERED 350 MILLION IN ASSETS AFTER ROLLING UP A 17 GAIN IN THE FOURTH QUARTER THE FUND IS UP 2 SO FAR THIS YEAR SOME PROS DON'T LIKE THE FACT THAT THE TWO BEAR FUNDS' FUTURE SUCCESS IS BASED ON THEIR SWEEPING MACROECONOMIC BETS ON INFLATION BUT PAUL STEPHENS PORTFOLIO MANAGER OF THE ROBERTSON STEPHENS CONTRARIAN FUND SAYS HIS BIGGEST RISK IS IF THE MARKET GOES TO 5000 MR SALVIGSEN'S DREYFUS FUND IS HEDGING ITS BETS IT HAS 40 OF ITS ASSETS IN CASH 9403180185 940318 TECHNOLOGY WORDPERFECT IS SET TO CHALLENGE ADOBE IN ELECTRONICPUBLISHING SOFTWARE FIELD BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL WORDPERFECT CORP AMONG THE WORLD'S LARGEST SOFTWARE MAKERS PLANS TO INTRODUCE ON TUESDAY A PROGRAM THAT WILL PIT THE OREM UTAH COMPANY AGAINST ADOBE SYSTEMS INC IN A RACE TO SUPPLY A KEY PIECE OF ELECTRONICPUBLISHING SOFTWARE ADOBE WHICH CREATED A LUCRATIVE FRANCHISE ON THE STRENGTH OF ITS COMPUTERPRINTING SOFTWARE AIMS TO WIN THE MAJOR SHARE OF AN EMERGING SOFTWARE MARKET WITH A PROGRAM CALLED ACROBAT THE PROGRAM ADOBE SAYS MAKES IT POSSIBLE TO VIEW IN A CONSISTENT WAY TEXT AND GRAPHICS PUBLISHED ELECTRONICALLY THE ENTRY OF WORDPERFECT A CLOSELY HELD COMPANY MAKES IT ADOBE'S FIRST BIG COMPETITOR IN THIS MARKET JOHN WARNOCK CHIEF EXECUTIVE OFFICER OF ADOBE SAID WORDPERFECT'S ENTRY CONFIRMS THE MARKET'S POTENTIAL PEOPLE ARE REALIZING THAT WE WEREN'T CRAZY TO EMPHASIZE THE IMPORTANCE OF SOFTWARE THAT ENHANCES THE READABILITY OF ELECTRONIC DOCUMENTS HE SAID ADDING I'D BE DISAPPOINTED IF WE DIDN'T DRAW COMPETITORS THIS WILL HAVE APPEAL AND MAKE WORDPERFECT A CLEAR NO2 FROM THE START SAID RUSSELL CRABS AN ANALYST AT SOUNDVIEW FINANCIAL GROUP AS DEMAND GROWS FOR ELECTRONIC VERSIONS OF BOOKS MANUALS AND EVEN MAGAZINES PUBLISHERS ARE STRUGGING TO FIND A WAY TO ENSURE THAT EVERY READER SEES THE SAME CONSISTENT DESIGN NO MATTER WHAT THEIR BRAND OF COMPUTER THE MARKET FOR THE SOFTWARE TOOLS THAT ENSURE CONSISTENCY IS TINY TODAY BUT IS EXPECTED TO GROW SHARPLY WORDPERFECT SAYS IT HAS THE EDGE OVER ADOBE BECAUSE ITS PROGRAM CALLED ENVOY IS SMALLER FASTER AND ABLE TO WORK ON MORE TYPES OF COMPUTERS THAN DOES ADOBE'S ACROBAT CUSTOMERS SO FAR HAVE REACTED COOLLY TO ACROBAT BECAUSE IT TAKES UP SO MUCH SPACE ON THE COMPACT DISCS THAT ARE INCREASINGLY USED AS THE MEDIA FOR ELECTRONIC BOOKS SOME ANALYSTS SAY THE LARGE SIZE OF ACROBAT ALSO MAKES IT UNSUITABLE FOR ATTACHING TO DOCUMENTS THAT ARE DISTRIBUTED ON LINE OR OVER TELEPHONE LINES THEY ADD WORDPERFECT WHICH SELLS THE MOST POPULAR WORDPROCESSING SOFTWARE HAS GROWING LINKS WITH PUBLISHERS THE COMPANY ALREADY SELLS THE ELECTRONIC VERSION OF THE UNABRIDGED RANDOM HOUSE DICTIONARY AND OTHER REFERENCE BOOKS DONALD EMERY WHO HEADS WORDPERFECT'S ELECTRONIC PUBLISHING GROUP SAID A FEW MAJOR PUBLISHERS HAVE AGREED TO USE THE COMPANY'S DOCUMENTREADER SOFTWARE IN FORTHCOMING ELECTRONIC BOOKS AND SAID DETAILS OF THOSE DEALS WILL BE RELEASED NEXT TUESDAY SEPARATELY ADOBE SAID FISCAL FIRSTQUARTER REVENUE ROSE 19 THOUGH PROFITS WERE FLAT DUE TO AN EXTRAORDINARY GAIN IN THE YEAREARLIER PERIOD THE COMPANY REPORTED NET INCOME FOR THE PERIOD ENDED FEB 28 WAS 15 MILLION OR 32 CENTS A SHARE THAT COMPARES WITH YEAREARLIER PROFIT OF 154 MILLION OR 34 CENTS A SHARE INCLUDING A NONOPERATING GAIN OF 39 MILLION OR FIVE CENTS A SHARE FROM SALE OF STOCK HELD AS AN INVESTMENT PROFIT WAS TOWARD THE HIGH END OF WALL STREET ESTIMATES WHICH RANGED FROM 26 CENTS TO 33 CENTS REVENUE ROSE TO 812 MILLION FROM 685 MILLION LARGELY DRIVEN BY A 61 GAIN IN THE COMPANY'S APPLICATION PROGRAMS ADOBE WHICH ON TUESDAY ANNOUNCED A DEAL TO ACQUIRE ALDUS CORP IN A STOCK SWAP RELEASED ITS EARNINGS REPORT AFTER THE STOCK MARKETS CLOSED IN TRADING YESTERDAY ON THE NASDAQ STOCK MARKET ITS SHARES CLOSED AT 30875 UP 1375 OR 47 VOLUME TOTALED 26 MILLION SHARES OR ALMOST TRIPLE THE STOCK'S DAILY AVERAGE VOLUME 9403180184 940318 LEISURE & ARTS ON SPORTS THE TEMP' IN BASEBALL'S TOP JOB BY FREDERICK C KLEIN CHANDLER ARIZ PUBLISHED REPORTS HAVE PUT THE SALARY ALAN H BUD SELIG IS RECEIVING AS CHAIRMAN OF MAJOR LEAGUE BASEBALL'S EXECUTIVE COMMITTEE A POST THAT MAKES HIM THE GAME'S DE FACTO COMMISSIONER AT 1 MILLION A YEAR SELIG WILL NEITHER CONFIRM NOR DENY THE FIGURE POSSIBLY OUT OF THE CONVICTION HE'S BEING SHAMEFULLY UNDERPAID THE OWNER OF THE MILWAUKEE BREWERS HAS OCCUPIED BASEBALL'S TOP JOB SINCE SEPTEMBER OF 1992 WHEN FAY VINCENT A SLOW LEARNER FINALLY READ THE HANDWRITING ON THE WALL AND QUIT IN A HUFF SELIG STEPPED IN FOR WHAT HE THOUGHT WOULD BE THREE OR FOUR MONTHS HE'S BEEN THERE FOR 18 MONTHS NOW AND HIS TENURE COULD LAST A GOOD BIT LONGER A LOT OF THE OWNERS THINK WE SHOULDN'T PICK A NEW COMMISSIONER UNTIL AFTER WE GET A NEW LABOR AGREEMENT HE NOTES IN HIS TINY OFFICE IN HIS TEAM'S SPRINGTRAINING HEADQUARTERS HERE GIVEN THE SHARPLY OPPOSED STANCES OF THE TWO SIDES THAT COULD TAKE THE SLIM 59YEAROLD TO THE NORMAL AGE OF RETIREMENT THAT A TEAM OWNER HAS BEEN GUIDING BASEBALL FOR A LONGISH PERIOD IS SEEN BY SOME MAINLY SPORTS WRITERS AND LEGISLATORS IT SEEMS AS EVIDENCE OF DRIFT AND DECAY IN THE ERSTWHILE NATIONAL PASTIME OTHERS WILL CONCEDE THAT AT LEAST THE ARRANGEMENT HAS THE ADVANTAGE OF CLARITY SOME PAST COMMISSIONERS VINCENT INCLUDED DIDN'T FULLY REALIZE THEY WERE OWNERS' MEN UNTIL THE OWNERS SHOVED THEM OUT THE DOOR BUT THE OBSERVANT NOTE THAT SELIG'S OFFICIALUNOFFICIAL REIGN HAS BEEN MARKED BY MORE SUBSTANTIVE CHANGES THAN THOSE OF DULY CHOSEN OTHERS WHO SERVED MUCH LONGER LAST SEASON'S TWOTEAM EXPANSION OF THE MAJOR LEAGUES WAS CARRIED OUT AMID SMILES AND ATTENDANCE RECORDS REALIGNMENT OF THE DIVISIONS ON RATIONAL GEOGRAPHICAL GROUNDS AND AN EXPANSION OF THE POSTSEASON PLAYOFF FIELD THAT WILL ADD LATESEASON SPICE BECAME A REALITY AFTER YEARS OF WRANGLING OWNERS AGREED CONDITIONALLY ON REVENUE SHARING BETWEEN TEAMS IN THE LARGEST AND SMALLEST MARKETS AND ALMOST 74 YEARS AFTER THE OFFICE WAS ESTABLISHED FINALLY SAT DOWN AND DEFINED THE DUTIES OF THE COMMISSIONER THE LAST DEVELOPMENT ESPECIALLY WASN'T CARRIED OUT WITHOUT EXTERNAL CRITICISM AND INTERNAL NONSENSE PUTTING SUCH MATTERS AS FUTURE REALIGNMENT AND INTERLEAGUE PLAY BEYOND THE NEXT COMMISSIONER'S UNILATERAL REACH AND RATIFYING HIS STATUS AS AN OWNERS' REP IN LABOR AFFAIRS LED SOME TO CONCLUDE THAT THE INDIVIDUAL WILL BE TOOTHLESS IN AN ARTICLE ON THE SUBJECT FOR THE NEW YORK TIMES SELIG FOUND HIMSELF SUMMONING THE ORIGINAL INTENT OF THE CIGARCHOMPERS WHO HIRED THE FIRST BASEBALL COMMISH AS IF HE WERE WRITING ABOUT JEFFERSON FRANKLIN AND ADAMS YET SELIG PRONOUNCES HIMSELF WELL PLEASED WITH THE EFFORTS WE HE AND HIS FELLOW OWNERS HAVE GOTTEN ALONG BETTER AND DONE MORE IN THE LAST 18 MONTHS THAN IN THE PREVIOUS 25 YEARS HE DECLARES WE'VE BEEN MORE INVOLVED AND MORE APPRECIATIVE OF EACH OTHER'S PROBLEMS A COUPLE OF YEARS AGO BRINGING UP REVENUE SHARING GUARANTEED ANGRY REACTIONS AFTER WE APPROVED IT IN JANUARY PEOPLE WERE SHAKING HANDS AND HUGGING MANY WHO FOLLOW BASEBALL HAVE THOUGHT THAT IF ANYONE COULD GET THE LORDS OF THE GAME TO HUG AND JUST MAYBE PLEASE THE FANS TOO IT'D BE BUD SELIG THE MILWAUKEE AUTO DEALER GOT INTO THE GAME AS A FAN HAUNTING OWNERS' MEETINGS ON BEHALF OF A TEAM FOR HIS HOME TOWN FROM THE TIME THE BRAVES MOVED TO ATLANTA IN 1964 UNTIL HE AND OTHERS WERE ALLOWED TO BUY AND MOVE THE FOUNDERING SEATTLE FRANCHISE IN 1970 AS THE BREWERS' FIRST AND ONLY PRESIDENT HIS 24 YEARS IN OWNERSHIP PUTS HIM SECOND BEHIND ONLY THE CALIFORNIA ANGELS' GENE AUTRY IN LONGEVITY AMONG THE MOGULS AND HIS WILLINGNESS TO DO THE WORK OF THE GAME PUT HIM IN CHARGE OF ITS MOST POWERFUL COMMITTEES AT ONE TIME OR ANOTHER HE CONDUCTED THE SEARCHES THAT LED TO THE HIRING AS COMMISSIONER OF PETER UEBERROTH AND BART GIAMATTI AFTER VINCENT THE LATE GIAMATTI'S EXAIDE TERMINALLY ALIENATED HIS BOSSES THEY FIGURED ANY OUTSIDE SUCCESSOR WOULD BE MORE CURSE THAN BLESSING AND LET BUD DO IT FOR THE NONCE THAT PERIOD WILL ALMOST SURELY SPAN THE BARGAINING THAT'S GETTING UNDER WAY FOR A LABOR CONTRACT THAT WOULD TAKE EFFECT NEXT SEASON THE OWNERS SAY THEY'RE BOUND AND DETERMINED TO GET A SALARY CAP AND AN END TO THE SALARYARBITRATION SETUP THAT MORE THAN ANYTHING ELSE HAS SENT THEIR PAYROLLS SKYROCKETING FOR THE PAST 20 YEARS THE PLAYERS FAT AND HAPPY LIKE THINGS PRETTY MUCH THE WAY THEY ARE CAUSING MOST TO DOUBT THE LIKELIHOOD OF AN EASY ACCOMMODATION BEYOND RECOGNIZING THAT A SALARY CAP WOULD BE MORE PALATABLE TO THE PLAYERS IN THE FORM OF A TOPPER THAN A BEANIE SELIG DECLINES TO OFFER CONCRETE SUGGESTIONS THAT'LL BE UP TO RICHARD RAVITCH AND DONALD FEHR THE OWNERS' AND PLAYERS' CHIEF BARGAINERS RESPECTIVELY HE SAYS BUT HE'S QUICK TO ASSERT THAT HE'S SURE SOME WILL BE FORTHCOMING WE'VE GOT TO HAVE A SYSTEM THAT TIES SALARIES TO REVENUES THE NBA AND NFL HAVE ONE AND IT SHOULD BE OUR TURN HE PLEADS THINGS ARE TOO UNPREDICTABLE NOW THE SMALLMARKET TEAMS ARE FIGHTING FOR THEIR LIVES AND I THINK THE FANS ARE TIRED OF THE CONSTANT PLAYERCLUB ACRIMONY OVER MONEY IT'S IN EVERYONE'S INTEREST TO GET THIS RESOLVED ON A SENSIBLE BASIS SELIG ADDS A BIT WISTFULLY THAT A LABOR ACCORD WOULD ALLOW HIM TO RETURN FULL TIME CINCINNATUSLIKE TO HIS PRIMARY TASK OF RUNNING THE SMALLMARKET BREWERS WHO NEED ALL THE HELP THEY CAN GET THAT TEAM HAS LONG BEEN PLUMPING FOR A NEW BALLPARK TO REPLACE COUNTY STADIUM ONE WITH A RETRACTABLE ROOF THAT WOULD SHIELD FANS AND PLAYERS FROM THE FROSTY WISCONSIN APRILS AND SEPTEMBERS IS FINALLY ON THE DRAWING BOARD IT'D HAVE THE SOCALLED LUXURY BOXES THAT COUNTY STADIUM LACKS THAT'S WHAT HE MEANS WHEN HE SAYS IT'D PUT THE TEAM IN A POSITION TO COMPETE IN THE NEW ECONOMIC ENVIRONMENT HE CONCLUDES I'M AS MUCH A TRADITIONALIST AS ANYONE I WISH WE COULD TURN BACK THE CLOCK TO THE 1950S WHEN A BOX SEAT COST 250 AND THERE WERE TEAMS IN EBBETS FIELD AND THE POLO GROUNDS BUT WISHING WON'T MAKE IT SO 9403180183 940318 WHO'S NEWS CAPITAL CITIES/ABC INC CAPITAL CITIES/ABC INC NEW YORK THIS BROADCASTING CONCERN NAMED THREE VICE PRESIDENTS TO ITS MULTIMEDIA GROUP ROBERT J ACKLEY 33 YEARS OLD KATHERINE DILLON 33 AND LAUREN MARRUS 32 MR ACKLEY WAS MOST RECENTLY VICE PRESIDENT FINANCE AND OPERATIONS AT THE COMPANY'S VIDEO PUBLISHING UNIT MS DILLON HAS BEEN MANAGING DIRECTOR ABC NEWS VENTURES AND MS MARRUS WAS PREVIOUSLY VICE PRESIDENT AND JOURNALS PUBLISHER AT INSTITUTIONAL INVESTOR INC A BUSINESS PUBLISHING COMPANY THAT IS A UNIT OF CAPITAL CITIES 9403180182 940318 WHO'S NEWS MONSANTO CO MONSANTO CO ST LOUIS NUTRASWEET CO A DEERFIELD ILL UNIT OF THIS CHEMICAL COMPANY NAMED TWO EXECUTIVE VICE PRESIDENTS EFFECTIVE APRIL 1 J RICHARD DARNABY 42 YEARS OLD GROUP VICE PRESIDENT AND GENERAL MANAGER OF ITS SWEETNER GROUP AND NICK E ROSA 42 PRESIDENT OF NUTRASWEET EUROPE 9403180181 940318 REVIEW & OUTLOOK EDITORIAL PUBLIC SERVICE A TASK FORCE ADVISING NEW YORK CITY'S NEW MAYOR RUDOLPH GIULIANI SAYS THAT CONTRACTING OUT SOME CITY SERVICES COULD SAVE TAXPAYERS 500 MILLION A YEAR CLEVELAND MAYOR MICHAEL WHITE SAYS HIS CITY CAN NO LONGER AFFORD TO HAVE EIGHT WORKERS MAN A POTHOLE REPAIR TRUCK AND GET SUBSTANDARD WORK HE IS EXPLORING THE USE OF PRIVATE FIRMS TO DELIVER CITY SERVICES ONCE JUST A THINKTANK BUZZWORD PRIVATIZATION HAS BECOME AN ACCEPTED MANAGEMENT TOOL BUT CHANGE WON'T COME EASILY PETER VALLONE THE POWERFUL NEW YORK CITY COUNCIL SPEAKER SAYS HE WILL OPPOSE ANY CONTRACTING OUT OF CITY SERVICES WITHOUT ADVANCE PROOF THEY WILL SAVE MONEY BUT IF HE REALLY WANTS PROOF HE NEED ONLY TALK WITH THE MAYORS AND MANAGERS OF OTHER CITIES FOR WHOM COMPETITION IN SERVICE DELIVERY IS OLD HAT VEHICLE TOWING FOR EXAMPLE IS NOW DONE PRIVATELY IN 85 OF SURVEYED CITIES NONETHELESS MUNICIPAL UNIONS AND OTHER SPECIAL INTERESTS ARE RAISING OBJECTIONS THAT NEED TO BE ADDRESSED PRIVATE FIRMS COST MORE IN THE END SKEPTICS SAY THAT ONCE A PRIVATE FIRM WINS A CITY CONTRACT IT WILL USE ITS MONOPOLY POWER TO RAISE PRICES A SIMPLE SOLUTION IS TO MAKE CERTAIN EVERY SERVICE IS PERIODICALLY PUT OUT FOR COMPETITIVE BIDS CITIES CAN BE DIVIDED INTO ZONES SO THAT NO ONE COMPANY DOMINATES SOMETIMES A PUBLIC FORCE MADE LEANER BY COMPETITION CAN EVEN WIN BACK A CONTRACT IN 1978 PHOENIX BEGAN ALLOWING PRIVATE FIRMS TO BID AGAINST CITY GARBAGE COLLECTORS IN MANY NEIGHBORHOODS AT FIRST THE PRIVATE FIRMS WON EVERY CONTRACT UNDER PRESSURE THE CITY FORCE CUT ITS MAINTENANCE COSTS BY 25 AND REFORMED ITS LABOR PRACTICES BY AUTOMATING TRUCKS BY 1989 THE CITY HAD CUT COSTS AND WON BACK EVERY NEIGHBORHOOD CONTRACT CONTRACTING OUT LEADS TO CORRUPTION NEW YORK CITY'S LIMITED USE OF PRIVATE VENDORS IN THE 1980S RESULTED IN BRIBERY HORROR STORIES BUT IT DIDN'T USE COMPETITIVE BIDDING AND MADE MANY DECISIONS IN SECRET LINDA MORRISON DIRECTOR OF COMPETITIVE CONTRACTING FOR PHILADELPHIA MAYOR ED RENDELL HAS COMPILED A CHECKLIST ON HOW CITIES CAN RUN RATIONAL OPENBIDDING CONTESTS AND NEGOTIATE SOUND CONTRACTS PRIVATIZATION CAN LEAD TO MISTAKES BUT THEY ARE MORE EASILY CORRECTED THAN IN THE PUBLIC SECTOR LOS ANGELES COUNTY SAVES 53 MILLION A YEAR CONTRACTING OUT SUCH SERVICES AS BUILDING SECURITY BUT ITS FIVEYEAR CONTRACT WITH ONE FIRM TO REPAIR THE COUNTY'S 5000 VEHICLES RAN INTO PROBLEMS HOWEVER IT WAS ABLE TO END THE CONTRACT AFTER THREE YEARS AND NOW HAS THREE FIRMS DO THE WORK PICKING CONTRACTORS PROPERLY AND MONITORING THEM CAN ENSURE A HIGH LEVEL OF PERFORMANCE CONTRACTING OUT MEANS JOB LOSSES THAT WILL HURT MINORITIES MOST WHILE MANY LOCAL GOVERNMENTS ARE HEAVILY OVERSTAFFED CONTRACTING OUT SELDOM LEADS TO LAYOFFS NEGOTIATIONS WITH UNIONS CAN ALLOW JOB LOSSES THROUGH ATTRITION CONTRACTORS CAN ALSO BE REQUIRED TO GIVE FIRST CHOICE OF JOBS TO ANY LAIDOFF PUBLIC EMPLOYEES ES SAVAS OF NEW YORK'S BARUCH COLLEGE SAYS NO MORE THAN 5 TO 7 OF GOVERNMENT EMPLOYEES ARE LAID OFF WHEN A SERVICE IS PRIVATIZED AS FOR MINORITIES STUDIES FOR THE JOINT CENTER FOR POLICY STUDIES AND THE CITY OF NEWARK NJ WHERE MORE THAN 20 SERVICES HAVE BEEN PRIVATIZED SHOW THAT THE RACIAL MAKEUP OF THE PRIVATE CONTRACTOR'S WORK FORCE MIRRORS THAT OF THE CITY CONTRACTING OUT IS FINE FOR PHOENIX BUT NOT FOR A CITY LIKE NEW YORK THE ONE CONSTANT I FIND IN ADVISING LOCAL GOVERNMENTS IS THAT THEY INSIST THEIR OWN SITUATION IS UNIQUE AND THAT THINGS CAN'T BE DONE DIFFERENTLY SAYS ROBERT POOLE OF THE LOS ANGELESBASED REASON FOUNDATION HE NOTES THAT MANY CALIFORNIA CITIES CONTRACTED OUT ONLY AFTER THE TAXCUTTING PROPOSITION 13 FORCED THEM TO REEVALUATE THE STATUS QUO NOW MORE THAN 100 DIFFERENT SERVICES ARE CONTRACTED OUT BY CALIFORNIA CITIES AND COUNTIES LAKEWOOD CALIF WITH 63000 PEOPLE HAS ONLY 160 MUNICIPAL EMPLOYEES ALMOST ALL CITY SERVICES ARE CONTRACTED OUT MAYOR GIULIANI AND CLEVELAND'S MAYOR WHITE ARE CAUGHT BETWEEN FALLING REVENUES AND TAXPAYERS FED UP WITH POOR HIGHCOST SERVICES SO THEY ARE TURNING TO PRIVATIZATION WITH IMAGINATION AND COURAGE LOCAL OFFICIALS CAN CONVERT A POLITICAL HEADACHE INTO A BETTER MORE EFFICIENT DELIVERY OF SERVICES PULLING THAT OFF WILL NOT ONLY SAVE MONEY BUT WIN THE GRATITUDE OF LOCAL VOTERS 9403180180 940318 DOW JONES EQUITY MARKET INDEX NEW YORK TWO CHANGES TAKE EFFECT TODAY IN THE DOW JONES EQUITY MARKET INDEX WESTERN ATLAS INC A SPINOFF OF LITTON INDUSTRIES INC IS BEING ADDED TO THE OILFIELD EQUIPMENT AND SERVICES INDUSTRY GROUP ALSO AS A RESULT OF THE SPINOFF LITTON INDUSTRIES IS BEING MOVED TO THE AEROSPACE INDUSTRY GROUP FROM THE DIVERSIFIED TECHNOLOGY INDUSTRY GROUP 9403180179 940318 INITIAL JOBLESS CLAIMS DECREASED LAST WEEK WASHINGTON INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL 8000 LAST WEEK TO 342000 FROM A REVISED 350000 THE PREVIOUS WEEK THE LABOR DEPARTMENT SAID THE FOURWEEK AVERAGE LAST WEEK TOTALED 345250 DOWN FROM A REVISED 349250 FOR THE WEEK BEFORE THE FIGURES ARE ADJUSTED FOR SEASONAL CHANGES 9403180178 940318 JAPAN'S HOUSEHOLD SPENDING TOKYO JAPAN'S AVERAGE MONTHLY HOUSEHOLD SPENDING IN 1993 ROSE 05 FROM A YEAR EARLIER TO 335246 YEN 3163 A GOVERNMENT AGENCY REPORTED ADJUSTED FOR INFLATION HOWEVER THE AVERAGE MONTHLY SPENDING BY HOUSEHOLDS NATIONWIDE WAS DOWN 06 THE FIRST DECLINE SINCE A 08 SLIDE FOR 1981 THE AGENCY SAID 9403180177 940318 CANADIAN STEEL OUTPUT RISES OTTAWA CANADIAN STEEL PRODUCTION ROSE TO 285697 METRIC TONS FOR THE WEEK ENDED MARCH 12 UP 5 FROM 272181 TONS THE PREVIOUS WEEK AND UP 34 FROM 276275 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 220462 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 2591420 TONS A 63 DECLINE FROM 2766487 TONS A YEAR EARLIER 9403180176 940318 WHO'S NEWS EXPLORATION CO OF LOUISIANA EXPLORATION CO OF LOUISIANA LAFAYETTE LA DANNY M DOBBS VICE PRESIDENT OF EXPLORATION WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS OIL AND NATURAL GAS CONCERN MR DOBBS 48 YEARS OLD ASSUMES THE TITLE OF CHIEF OPERATING OFFICER FROM JOHN CHANDLER WHO REMAINS PRESIDENT MR CHANDLER 60 TAKES ON RESPONSIBILITY FOR THE COMPANY'S OPERATIONS IN CHINA 9403180175 940318 NORCEN ENERGY TO DELIST SHARES CALGARY NORCEN ENERGY RESOURCES LTD SAID IT HAS APPLIED TO THE US SECURITIES AND EXCHANGE COMMISSION FOR THE VOLUNTARY DELISTING OF ITS COMMON SHARES ON THE AMERICAN STOCK EXCHANGE THE COMPANY SAID THE MOVE IS MAINLY DUE TO THE LOW VOLUME OF TRADING IN ITS SHARES ON THE AMEX NORCEN SAID APRIL 5 WILL BE THE LAST DAY OF TRADING 9403180174 940318 FIGGIE POSTS A LOSS OF 1809 MILLION FOR FOURTH PERIOD PLANS TO SHED UNITS BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL FIGGIE INTERNATIONAL INC POSTED A LARGERTHANEXPECTED LOSS FOR THE FOURTH QUARTER AND YEAR AND ANNOUNCED A SWEEPING RESTRUCTURING PLAN TO SHED BUSINESSES ACCOUNTING FOR ABOUT ONETHIRD OF ITS 1993 SALES OF NEARLY 800 MILLION THE WILLOUGHBY OHIO MANUFACTURING CONCERN'S LOSS FOR THE QUARTER WAS 1809 MILLION OR 1007 A SHARE COMPARED WITH NET INCOME OF 103 MILLION OR 59 CENTS A SHARE IN THE YEAREARLIER PERIOD IT ALSO TOOK PRETAX CHARGES OF 112 MILLION IN THE QUARTER THE CHARGES CONSIST OF 77 MILLION FOR AN ACCOUNTING CHANGE TO COVER AN ILLFATED FACTORY AUTOMATION PROJECT AS WELL AS 35 MILLION FOR RESTRUCTURING AND CONSOLIDATION OF ITS FACILITIES THE COMPANY ALSO SAID IT ANTICIPATES CONTINUED LOSSES FOR A FEW QUARTERS AS IT ATTEMPTS TO TURN ITSELF AROUND I ANTICIPATE A MARKED IMPROVEMENT IN PROFITABILITY BY LATE 1994 AND PARTICULARLY IN 1995 CHAIRMAN HARRY E FIGGIE JR SAID IN A STATEMENT NOTING THE COMPANY HAS MADE GOOD PROGRESS ON ITS PLAN TO PAY DOWN DEBT BY MORE THAN 200 MILLION IN 1994 FIGGIE WHICH RUNS AN ECLECTIC ARRAY OF BUSINESSES SAID IT WILL FOCUS ON ITS CORE INDUSTRIAL AND TECHNICAL BUSINESS ENTERPRISES AND WILL SELL ITS AMERICAN LAFRANCE FIRE TRUCK PARTS AND SERVICES UNIT ITS ESSICK/MAYCO PUMPS AND MIXERS UNIT ITS SAFETY SUPPLY AMERICA SAFETY PRODUCTS UNIT ITS SHERWOODDROLET CORP HOCKEY EQUIPMENT UNIT AND ITS WAITE HILL HOLDINGS INSURANCE UNIT EARLIER THIS YEAR IT PUT ON THE BLOCK ITS ADVANCE SECURITY SECURITY GUARDS DIVISION AND ITS RAWLINGS SPORTING GOODS GROUP ALTOGETHER THE UNITS REPRESENT ANNUAL SALES OF 379 MILLION THEY WILL NOW REPORT AS DISCONTINUED OPERATIONS THE UNITS CONTRIBUTED A LOSS OF 85 MILLION IN THE FOURTH QUARTER IN NASDAQ STOCK MARKET TRADING FIGGIE SHARES FELL 875 CENTS APIECE OR 8 TO 10 FOR THE FULL YEAR FIGGIE REPORTED ITS FIRSTEVER ANNUAL LOSS 1798 MILLION OR 1011 A SHARE INCLUDING A 58 MILLION GAIN FROM A CHANGE IN ACCOUNTING FOR INCOME TAXES THAT COMPARED WITH NET INCOME OF 283 MILLION OR 161 A SHARE IN 1992 THE COMPANY BLAMED ITS LOSSES ON WEAK INDUSTRIAL AND COMMERCIAL CONSTRUCTION MARKETS FLOOD DAMAGE IN THE MIDWEST AND EXTRAORDINARY LOSSES AT ITS FRED PERRY SPORTSWEAR AND HARTMAN ELECTRICAL MANUFACTURING UNITS 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 9403180173 940318 WATER POINT SYSTEMS' TEST FORT WORTH TEXAS WATER POINT SYSTEMS INC RECEIVED APPROVAL FROM WALMART STORES INC'S SAM'S CLUB DIVISION TO INSTALL WATER VENDING MACHINES NEXT MONTH AT SEVERAL OF THE COMPANY'S WAREHOUSE CLUBS IN SOUTH TEXAS AS A TEST WATER POINT SAID IT ANTICIPATES THAT IF THE TEST PROVES SUCCESSFUL WALMART COULD EXTEND THE INSTALLATION TO OTHERS OF THE MORE THAN 420 SAM'S CLUB LOCATIONS IN NORTH AMERICA 9403180172 940318 FINANCING BUSINESS TRANSCO ENERGY CO TRANSCO ENERGY CO SAID IN HOUSTON THAT ITS TEXAS GAS TRANSMISSION CORP SUBSIDIARY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION 150 MILLION IN 10YEAR NOTES PROCEEDS WILL BE USED TO REFINANCE THE SUBSIDIARY'S 10 DEBENTURES MATURING NOV 1 1994 UNDERWRITERS FOR THE OFFERING WILL BE MERRILL LYNCH & CO AND CITICORP SECURITIES INC 9403180171 940318 SOUTHERN PACIFIC'S PURCHASE SAN FRANCISCO SOUTHERN PACIFIC RAIL CORP'S SOUTHERN PACIFIC LINES SAID IT IS BUYING 100 LOCOMOTIVES FROM GENERAL ELECTRIC CO FOR 135 MILLION FOR DELIVERY THIS YEAR THE COMPANY SAID THE PURCHASE OF THE NEW GE DASH 944CW LOCOMOTIVES ALONG WITH PREVIOUS LOCOMOTIVE ACQUISITIONS AND REBUILDS REPRESENTS A MAJOR 350 MILLION UPGRADE OF THE COMPANY'S FLEET SOUTHERN PACIFIC IS THE SIXTHLARGEST RAILROAD IN THE US 9403180170 940318 WHO'S NEWS OMNICARE INC OMNICARE INC CINCINNATI KURT H STUMP 44 YEARS OLD FORMERLY VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF 84 LUMBER CO A CLOSELY HELD RETAILER OF BUILDING SUPPLIES BASED IN PITTSBURGH WAS NAMED TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE PROVIDER OF PROFESSIONALPHARMACY AND RELATED CONSULTING SERVICES FOR LONGTERM CARE INSTITUTIONS HIS APPOINTMENT BECAME EFFECTIVE MARCH 2 9403180169 940318 AUTOTOTE TO ACQUIRE SIMULCASTER NEWARK DEL AUTOTOTE CORP SAID IT AGREED TO ACQUIRE MARVIN H SUGARMAN PRODUCTIONS INC AND ITS AFFILIATE RACING TECHNOLOGY INC TERMS WEREN'T DISCLOSED SUGARMAN PRODUCTIONS BASED IN NEW YORK CITY IS THE LARGEST SIMULCASTER OF LIVE HORSE AND GREYHOUND RACING EVENTS TO OFFTRACK BETTING PATRONS IN NORTH AMERICA AUTOTOTE SAID SUGARMAN PRODUCTIONS ALSO SIMULCASTS SPECIAL ENTERTAINMENT AND NEWS AND SPECIAL LIVE SPORTS EVENTS WORLDWIDE 9403180168 940318 UTILX EXPECTS LOSS FOR QUARTER KENT WASH UTILX CORP SAID IT WILL POST A SMALL LOSS FOR ITS FOURTH QUARTER ENDING MARCH 31 BECAUSE OF BAD WEATHER IN THE EASTERN US THAT HAMPERED THE COMPANY'S UTILITY RENOVATION BUSINESS ANALYSTS HAD BEEN EXPECTING A PROFIT OF ABOUT 10 CENTS A SHARE THE COMPANY SAID FOR THE YEAREARLIER PERIOD UTILX REPORTED A LOSS OF 52 MILLION OR 73 CENTS A SHARE ON SALES OF 112 MILLION 9403180167 940318 ROSTENKOWSKI CASE MOVING FORWARD THREATENING HEALTHPLAN TIMETABLE BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL PROSECUTORS AND LAWYERS FOR REP DAN ROSTENKOWSKI PLAN TO MEET NEXT WEEK TO REVIEW ALLEGATIONS THAT COULD LEAD TO HIS INDICTMENT ON CORRUPTION CHARGES THAT MEETING WILL BE THE FIRST OF WHAT MAY BE SEVERAL AFTER WHICH US ATTORNEY ERIC HOLDER WILL DECIDE WHETHER TO ACCEPT WHAT PEOPLE FAMILIAR WITH THE CASE SAY WILL BE A PROBABLE STAFF RECOMMENDATION TO SEEK AN INDICTMENT OF MR ROSTENKOWSKI ONCE PROSECUTORS TELL MR ROSTENKOWSKI'S LAWYERS THEY PLAN TO SEEK AN INDICTMENT A GRAND JURY WOULDN'T BE ASKED TO DO SO UNTIL THREE WEEKS AFTER THAT COMMUNICATION ATTORNEY GENERAL JANET RENO WOULD ALSO HAVE A CHANCE TO REVIEW MR HOLDER'S DECISION THAT MEANS AN INDICTMENT IF THERE IS ONE COULD BE FOUR TO FIVE WEEKS AWAY THE TIMING IS CRUCIAL NOT JUST TO THE CHICAGO DEMOCRAT'S FUTURE BUT ALSO TO PRESIDENT CLINTON'S EFFORTS TO RESTRUCTURE THE NATION'S HEALTHCARE SYSTEM IF INDICTED MR ROSTENKOWSKI WOULD BE REQUIRED BY HOUSE RULES TO STEP DOWN AS CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE WHICH IS PLAYING A CENTRAL ROLE IN SHAPING THE PRESIDENT'S PROGRAM FINAL COMMITTEE ACTION ON THE CLINTON HEALTH PROGRAM STRONGLY SUPPORTED BY MR ROSTENKOWSKI ISN'T EXPECTED UNTIL MIDTOLATE MAY A ROSTENKOWSKI INDICTMENT CERTAINLY IS POSSIBLE BEFORE THEN THAT WOULD LEAVE ONE OF MR CLINTON'S MOST POWERFUL CONGRESSIONAL ALLIES WITHOUT THE POWER OF THE CHAIRMANSHIP PEOPLE FAMILIAR WITH THE CASE SAY FEDERAL BUREAU OF INVESTIGATION AGENTS AND STAFF ATTORNEYS IN MR HOLDER'S OFFICE WHO HAVE WORKED ON THE ROSTENKOWSKI CASE FOR TWO YEARS BELIEVE HE SHOULD BE PROSECUTED BUT A FINAL DECISION HASN'T BEEN MADE A GRAND JURY HAS SUBPOENAED SEVERAL YEARS OF MR ROSTENKOWSKI'S FINANCIAL RECORDS TO INVESTIGATE ALLEGATIONS THAT HE PUT PEOPLE ON HIS CONGRESSIONAL PAYROLL WHO DID NO WORK AND PARTICIPATED IN A SCHEME TO SWAP OFFICE STAMPS FOR CASH AT THE HOUSE POST OFFICE MR ROSTENKOWSKI'S LAWYER ROBERT BENNETT SAID HE'S CONFIDENT THAT NO DECISIONS HAVE BEEN MADE YET AND WE WILL BE GIVEN FULL OPPORTUNITY TO RESPOND TO ANY CONCERNS AT THE COMPLETION OF THE INVESTIGATION AFTER MR BENNETT IS INFORMED OF A DECISION TO PROSECUTE THERE WOULD BE A THREEWEEK PERIOD DURING WHICH HE MAY TRY TO PERSUADE JUSTICE DEPARTMENT OFFICIALS TO CHANGE THEIR MINDS A COURTESY PROSECUTORS AND DEFENSE LAWYERS SAY IS NOT UNCOMMON IN CASES OF THIS TYPE 9403180166 940318 STOP US BEFORE WE MEET AGAIN BY PHILIP R LOCHNER JR AND RICHARD H KOPPES OVER THE NEXT FEW MONTHS MOST PUBLICLY HELD AMERICAN COMPANIES WILL PERFORM AS THEY DO EVERY SPRING ONE OF THE LEAST USEFUL RITUALS OF US BUSINESS LIFE THE ANNUAL SHAREHOLDERS MEETING THERE ARE OF COURSE DECISIONS SHAREHOLDERS NEED TO MAKE AND AFTER READING A COMPANY'S PROXY STATEMENT THEY TYPICALLY MAKE THEM BY SIGNING PROXY CARDS BUT A DISTINCTION NEEDS TO BE MADE AT THE OUTSET VOTING BY PROXY A NECESSITY IN EVERY PUBLIC COMPANY IS VERY DIFFERENT FROM THE ANNUAL MEETING OF SHAREHOLDERS WHICH HAS IN MOST CASES BECOME A MONUMENTAL WASTE OF TIME AND MONEY THERE WAS A TIME WHEN IT MADE SENSE TO HAVE AN ACTUAL MEETING OF ALL THE SHAREHOLDERS OF A COMPANY ONCE A YEAR IN THE 19TH CENTURY THE RELATIVELY FEW INDIVIDUALS WHO CONSTITUTED MOST COMPANIES' SHAREHOLDERS USUALLY LIVED NEAR THE COMPANY'S OFFICES OR FACTORY IN THOSE DAYS THE ANNUAL MEETING PROVIDED AN OPPORTUNITY FOR INDIVIDUAL SHAREHOLDERS TO EXCHANGE VIEWS ABOUT THE BUSINESS AND REACH A COLLECTIVE JUDGMENT ABOUT THE COMPANY'S PERFORMANCE BEFORE VOTING ON THE ELECTION OF DIRECTORS AND OTHER SIGNIFICANT COMPANY MATTERS BY THE TURN OF THE CENTURY TWO DEVELOPMENTS THE RISE OF CORPORATIONS WHOSE SHAREHOLDERS WERE SCATTERED ACROSS THE COUNTRY AND THE SPREAD OF MODERN COMMUNICATIONS WERE STARTING TO UNDERMINE THE USEFULNESS OF THE ANNUAL SHAREHOLDERS MEETING BY DEFINITION A NATIONAL CORPORATION COULDN'T EVER HOPE TO GATHER ALL ITS OWNERS UNDER ONE ROOF EVEN IF ALL THE SHAREHOLDERS COULD BE BROUGHT TOGETHER A MEETING OF SEVERAL HUNDRED OR SEVERAL THOUSAND PEOPLE WASN'T A VERY PRACTICAL DEVICE FOR GETTING THINGS DONE NOR DID A COMPANY REALLY NEED TO GATHER ALL ITS SHAREHOLDERS TOGETHER TO COMMUNICATE WITH THEM SINCE THEY COULD BE INFORMED THROUGH MAILINGS AND THE ANNUAL REPORT THE SECURITIES AND EXCHANGE COMMISSION ALSO HELPED TO DECREASE MEETINGS' IMPORTANCE SECURITIES LAWS DO NOT PERMIT THE DISCLOSURE OF KEY DEVELOPMENTS TO JUST THE FEW SHAREHOLDERS WHO ATTEND AN ANNUAL MEETING DISCLOSURE MUST BE MADE TO THE WORLD AT LARGE DISCLOSURE LAWS ALSO MANDATE THAT COMPANIES SEND THEIR ANNUAL REPORTS AND PROXY STATEMENTS TO ALL SHAREHOLDERS WHETHER OR NOT THEY ATTEND THE ANNUAL MEETING AS A RESULT THERE IS REALLY NO NEED FOR A SHAREHOLDER TO ATTEND MORE RECENT CHANGES HAVE MADE SHAREHOLDERS MEETINGS ALMOST ENTIRELY IRRELEVANT FIRST SHAREHOLDERS ARE NOW SCATTERED NOT JUST ACROSS THE COUNTRY BUT AROUND THE GLOBE AND SECOND MORE OF THE STOCK OF PUBLIC COMPANIES IS HELD BY PENSION FUNDS MUTUAL FUNDS BANKS AND OTHER INSTITUTIONS BIG INSTITUTIONAL INVESTORS THAT WANT TO HEAR ABOUT WHAT A COMPANY IS DOING CAN SIMPLY PICK UP THE PHONE AND ASK THERE IS NO REQUIREMENT THAT THEY WAIT FOR AN ANNUAL MEETING WHICH IN ANY EVENT HARDLY PROVIDES A SETTING CONDUCIVE TO A SERIOUS DISCUSSION OF A COMPANY'S PROSPECTS OR MANAGEMENT FURTHERMORE MOST IMPORTANT CORPORATE ACTIONS ARE NOW REPORTED VIRTUALLY INSTANTANEOUSLY ON FINANCIAL WIRE SERVICES BUSINESSORIENTED CABLE TELEVISION CHANNELS AND THE DAILY BUSINESS PRESS THEY ARE THEN ANALYZED IN BROKERAGE FIRM REPORTS NEWSLETTERS BUSINESS PUBLICATIONS THE TRADE PRESS AND THE LIKE YET THE ANNUAL MEETINGS DRONE ON THANKS TO STOCK EXCHANGE REGULATIONS THAT REQUIRE COMPANIES TO HOLD THEM THESE MEANINGLESS MEETINGS HAVE COME TO RESEMBLE A PLAY IN FOUR ACTS WITH THE ACTORS PLAYING CAREFULLY SCRIPTED ROLES ACT ONE THE CHIEF EXECUTIVE GIVES A SPEECH TELLING THOSE PRESENT LITTLE THEY DON'T ALREADY KNOW IF THEY'VE READ THE COMPANY'S ANNUAL REPORT PROXY STATEMENT AND OTHER COMMUNIQUES ACT TWO DIRECTORS ARE REELECTED AND AUDITORS REAPPOINTED IN UNCONTESTED ELECTIONS ON THE BASIS OF PROXIES VOTED AND MAILED IN BY THE SHAREHOLDERS THE VAST MAJORITY OF WHOM DON'T BOTHER TO ATTEND THE ANNUAL MEETING THE RESULTS ARE KNOWN IN ADVANCE AND NOTHING THAT HAPPENS AT TBE MEETING CAN EASILY CHANGE THE OUTCOME ACT THREE THE CEO DEMONSTRATES HIS OR HER ABILITY TO MEMORIZE BRIEFING BOOKS PREPARED BY COMPANY STAFFERS SO THAT WHATEVER QUESTIONS ARE ASKED AT THE MEETING CAN BE ANSWERED OFTEN THE QUESTIONS ASKED BY SHAREHOLDERS ARE EITHER IRRELEVANT OR NOT VERY PROFOUND ACT FOUR IF SHAREHOLDER PROPOSALS ARE ON THE AGENDA THE POSITIONS FOR AND AGAINST ARE SET OUT IN THE PROXY STATEMENT NEVERTHELESS MUCH TIME IS SPENT REPEATING THE PROS AND CONS STAGING THESE CORPORATE KABUKI PLAYS ISN'T CHEAP COMPANIES FREQUENTLY SPEND THOUSANDS OF DOLLARS TO RENT HOTEL BALLROOMS MORE THOUSANDS TO PROVIDE SECURITY TRANSPORTATION AND COMMUNICATIONS MORE THOUSANDS FOR LAWYERS ACCOUNTANTS AND PR PEOPLE AND STILL MORE THOUSANDS FOR COFFEE DONUTS AND GOODIE BAGS FOR SOME COMPANIES THESE COSTS CAN RUN INTO SEVEN FIGURES ULTIMATELY THE SHAREHOLDERS PAY FOR IT ALL THE GREATEST COST BY FAR OF THE ANNUAL MEETING HOWEVER IS IN THE TIME TYPICALLY CONSUMED BY THE CEO AND SENIOR MANAGEMENT IN PREPARING FOR IT DAYS AND DAYS ARE USED UP IN PLANNING IN REHEARSALS IN PREPARING LISTS OF POSSIBLE QUESTIONS AND ANSWERS IN DRAFTING SPEECHES AND IN ARRANGING LOGISTICS ALL THIS IS TIME NOT SPENT IN THINKING ABOUT THE BUSINESS SOLVING ITS PROBLEMS AND ADDRESSING ITS FUTURE WHO GOES TO THESE MEETINGS ANALYSTS AND THE BUSINESS PRESS ATTEND ONLY OUT OF A SENSE OF DUTY SOPHISTICATED SHAREHOLDERS DON'T GO AT ALL THE AUDIENCE IS LIKELY TO BE COMPANY EMPLOYEES AND RETIREES LOOKING TO FILL AN OTHERWISE QUIET AFTERNOON AT SOME ANNUAL MEETINGS THE AUDIENCE IS MADE UP ALMOST EXCLUSIVELY OF CORPORATE EXECUTIVES LAWYERS PR PEOPLE AUDITORS AND THE LIKE IN EFFECT THE STAGEHANDS HAVE BECOME THE AUDIENCE TWO DEFENSES ARE COMMONLY MADE FOR SHAREHOLDERS MEETINGS ONE IS THAT THEY ENABLE ORDINARY SHAREHOLDERS TO ASK QUESTIONS AND SEE THE CEO PERFORM SPONTANEOUSLY IN PUBLIC BUT A CEO'S PERFORMANCE RARELY DISCLOSES ANYTHING VERY MEANINGFUL ABOUT HIS MANAGEMENT SKILLS INTELLIGENCE OR EFFECTIVENESS THERE ARE BETTER ALTERNATIVES FOR SHAREHOLDERS WHO WANT TO HAVE THEIR QUESTIONS ANSWERED SOME COMPANIES HAVE PERIODIC REGIONAL SHAREHOLDER FORUMS A FEW HAVE OMBUDSMEN TO RESPOND TO SHAREHOLDER COMPLAINTS AND VIRTUALLY ALL HAVE SHAREHOLDER RELATIONS DEPARTMENTS TO RESPOND TO LETTERS AND OTHER INQUIRIES THE SECOND AND MORE SUBSTANTIAL DEFENSE OF THE ANNUAL MEETING IS THAT FOR THE COMPANY IN TROUBLE OR FACING CRITICAL DECISIONS SUCH AS A MERGER IT IS A CRUCIAL PIECE OF CORPORATE DEMOCRACY THIS DEFENSE APPLIES HOWEVER TO ONLY A SMALL FRACTION OF THE 12000 OR SO PUBLIC COMPANIES IN THE US IT SEEMS ODD TO REQUIRE ALL PUBLIC COMPANIES TO GO THROUGH AN ANNUAL MEETING WHEN IT MAY BE CRITICAL FOR ONLY A FEW WHAT IS TO BE DONE TWO POSSIBILITIES COME TO MIND TREAT THE ANNUAL MEETING AS THE EMPTY RITUAL IT HAS BECOME AND GET IT OVER WITH AS QUICKLY AND INEXPENSIVELY AS POSSIBLE THERE IS AFTER ALL NO LEGAL REQUIREMENT THAT THE CEO GIVE A SPEECH OR ANSWER QUESTIONS OR EVEN THAT HE ATTEND COMPANIES COULD CALL THEIR MEETINGS TO ORDER AND QUICKLY GO THROUGH THE REQUIRED LEGAL MUMBOJUMBO THEN EVERYONE COULD GO HOME CHANGE THE STOCK EXCHANGE RULES SO THE TYPICAL ANNUAL MEETING AGENDA COULD BE VOTED ON BY MAIL THE PROXY CARD COULD EVEN GIVE SHAREHOLDERS THE OPPORTUNITY TO VOTE ON WHETHER TO BOTHER WITH AN ANNUAL MEETING ONLY IF SOME RELATIVELY SIGNIFICANT MINORITY OF SHAREHOLDERS SAY 10 OR 20 VOTES TO HAVE A MEETING OR IF A SHAREHOLDERS VOTE WERE NEEDED FOR SOMETHING OTHER THAN THE TYPICAL AGENDA WOULD A MEETING BE CALLED OTHERWISE THE SHAREHOLDER MEETING COULD BE RELEGATED TO THE HISTORY BOOKS MR LOCHNER IS A SENIOR VICE PRESIDENT OF TIME WARNER INC AND A FORMER SEC COMMISSIONER MR KOPPES IS GENERAL COUNSEL OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM 9403180165 940318 SEC AFFIRMS THE FINES AGAINST GK SCOTT EMPLOYEES BY NASD WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC SAID THE SECURITIES AND EXCHANGE COMMISSION AFFIRMED THE NASD'S DISCIPLINARY ACTION AGAINST GK SCOTT & CO AND TWO EMPLOYEES OF THE BROKERAGE FIRM IN JUNE 1992 THE NASD IMPOSED THREE SEPARATE FINES TOTALING 770000 ON GK SCOTT AND THE TWO EMPLOYEES CHARGING THE FIRM WITH OVERCHARGING CUSTOMERS IN AN INITIAL PUBLIC OFFERING IT CONTROLLED THE SEC AFFIRMED THE NASD SANCTIONS FOLLOWING AN APPEAL OF THE DECISION BY AN NASD COMMITTEE THE FIRM BASED IN PLAINVIEW NY WAS FINED 716000 JOINTLY AND SEVERALLY WITH JOHN KEVORKIAN THE FIRM'S TRADER AND 50000 JOINTLY AND SEVERALLY WITH GEORGE KEVORKIAN THE FIRM'S PRESIDENT NASD ALSO FINED GK SCOTT 4000 AND SUSPENDED IT FROM ACTING AS A LEAD UNDERWRITER IN ANY UNDERWRITING FOR SIX MONTHS AN ATTORNEY FOR GK SCOTT AND THE KEVORKIANS SAID THE PARTIES HAVE APPEALED THE ACTION TO THE US CIRCUIT COURT OF APPEALS IN THE DISTRICT OF COLUMBIA 9403180164 940318 INTERNATIONAL ROCKWELL INTERNATIONAL VENTURE MUNICH GERMANY DEUTSCHE AEROSPACE AG AND ROCKWELL INTERNATIONAL CORP AGREED TO FORM A JOINT VENTURE TO PURSUE ADVANCED AVIONICS SYSTEMS DEVELOPMENT DEUTSCHE AEROSPACE A UNIT OF DAIMLERBENZ AG SAID THE VENTURE WILL PURSUE SYSTEMS DEVELOPMENT AND WORLDWIDE MARKETING FOR KEY AVIATION TECHNOLOGIES DEUTSCHE AEROSPACE SAID THE NEW COMPANY TO BE NAMED LATER WILL BE BASED IN ULM GERMANY AND EACH PARTNER WILL OWN 50 9403180163 940318 COMPUTERS THE GENDER DIVIDE HIGHTECH CULTURE STILL IMPEDES WOMEN BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF THE BIGGEST PROBLEMS FACING WOMEN IN THE COMPUTER INDUSTRY IS THEIR SMALL NUMBER LAST YEAR WOMEN ACCOUNTED FOR ONLY 16 OF UNDERGRADUATE ENGINEERING DEGREES THAT'S A SHARP RISE FROM 1970 WHEN LESS THAN 1 OF ENGINEERING GRADUATES WERE WOMEN BUT IT'S ONLY A SLIGHT INCREASE FROM 1986 AND SUBSTANTIALLY FEWER WOMEN ARE ENTERING INDUSTRIAL ENGINEERING AND RESEARCH THAN SAY THE FIELDS OF LAW AND HEALTH CARE TEN YEARS AGO I THOUGHT WE'D REACH 25 WOMEN GRADUATES BEFORE THE NUMBERS LEVELED OFF SAYS BETTY VETTER DIRECTOR OF THE COMMISSION ON PROFESSIONALS IN SCIENCE AND ENGINEERING BUT THERE ARE A LOT OF STUBBORN FORCES IN THE WORK FORCE THAT DISCOURAGE WOMEN INDUSTRY IS ALSO ATTRACTING A SIGNIFICANTLY SMALLER PERCENTAGE OF WOMEN ENGINEERS AND SCIENTISTS THAN ACADEMIA AND GOVERNMENT ACCORDING TO A RECENT REPORT BY THE NATIONAL ACADEMY OF SCIENCES THE STUDY ENTITLED WHY SO FEW CONCLUDES THAT WOMEN PERCEIVE THE CLIMATE IN INDUSTRY AS LESS FAVORABLE THAN TECHNICAL WORK ELSEWHERE ESTHER CONWELL A PHYSICIST AT XEROX CORP WHO CHAIRED THE STUDY WARNS THAT MORE COMPANIES MUST ADDRESS THE SPECIAL NEEDS OF THEIR TECHNICAL WOMEN YOU CAN'T JUST ASSUME THAT MEN AND WOMEN ARE EQUAL AND WILL HAVE THE SAME PROBLEMS SHE SAYS THINGS ARE BETTER THAN THEY WERE WHEN THERESE STOWELL JOINED MICROSOFT CORP THE BIG SOFTWARE MAKER IN REDMOND WASH SIX YEARS AGO FRESH FROM BROWN UNIVERSITY'S COMPUTER SCIENCE DEPARTMENT SHE FOUND A FRATERNITY ATMOSPHERE IT WAS LIKE A BOY'S CLUB WITHIN GROUPS THAT WROTE OR TESTED SOFTWARE MANAGERS TACITLY PERMITTED JOKES AND POSTERS THAT DEMEANED WOMEN THE RELATIVE ISOLATION OF WOMEN PROGRAMMERS ALSO MADE IT MORE DIFFICULT FOR WOMEN TO WIN CREDIBILITY FOR THEIR TECHNICAL IDEAS AND SKILLS FOUR YEARS AGO MS STOWELL AND ABOUT TWO DOZEN OTHER FEMALE CODEWRITERS FORMED AN ELECTRONIC NETWORK OVER WHICH THEY COULD AIR GRIEVANCES AND FORGE BONDS THE GROUP SUCCESSFULLY PRESSED MANAGEMENT TO BAN PICTURES OF NUDE WOMEN ON OFFICE AND HALLWAY WALLS AND MICROSOFT ISSUED A FORMAL POLICY ON SEXUAL HARASSMENT WOMEN CODEWRITERS SAY MEN AT MICROSOFT SHOW MORE RESPECT AND SENSITIVITY TOWARD THEM NOW MORE EFFORTS ARE MADE TO RECRUIT WOMEN FROM COLLEGE AND TO SUPPORT THEM ONCE THEY ARRIVE BUT IN A COMPANY WITH THOUSANDS OF PROGRAMMERS THERE ARE STILL ONLY A FEW WOMEN MANAGERS AND THERE IS A SUSPICION THAT MICROSOFT'S CULTURE WHICH ENCOURAGES CONFLICT AND HALLWAY SHOUTING MATCHES STILL MAKES IT HARD FOR TALENTED WOMEN TO ADVANCE MICROSOFT ISN'T THE ONLY HIGHTECH COMPANY THAT HAS CHANGED IN 1987 WHEN LAURIE MITTELSTADT HELPED ORGANIZE THE FIRST CONFERENCE OF WOMEN ENGINEERS AND RESEARCHERS AT HEWLETTPACKARD CO SHE HAD TO QUIET SKEPTICS WITH THE REMARK EVERY DAY AT HP IS A CONFERENCE FOR MEN SO WHY CAN'T THE WOMEN GET TOGETHER ONCE IN AWHILE THE CONFERENCE IS NOW A BIANNUAL AFFAIR AT THE BIG PALO ALTO CALIF ELECTRONICS MAKER WOMEN ENGINEERS AND SCIENTISTS ACCOUNT FOR A QUARTER OF HEWLETTPACKARD'S ANNUAL HIRING OF NEW COLLEGE GRADUATES AND MORE WOMEN ARE MOVING INTO RESEARCH MANAGEMENT AS THEY TRY TO ACCOMMODATE MORE WOMEN THOUGH HIGHTECH COMPANIES CAN'T COUNT ON TECHNICAL WOMEN TO ALWAYS CRY FOUL NOT ALL WOMEN SPEAK OUT AGAINST PERCEIVED SLIGHTS OR ORGANIZE TO IDENTIFY AND OVERCOME BARRIERS TO EQUAL TREATMENT YOU DON'T COMPLAIN THAT WOULD BE THE QUICKEST WAY TO GET OSTRACIZED BY MEN SAYS A WOMAN SOFTWARE DESIGNER FOR A MAJOR ELECTRONIC MEDIA COMPANY ON THE JOB YOU LAY LOW SHE SAYS AS A RESULT NO ONE KNOWS I'M SO ANGRY I'M READY TO QUIT WHEN THEIR PATHS ARE BLOCKED SOME WOMEN FOLLOW THE MANY NEW AVENUES OPENED BY TECHNOLOGY AND START THEIR OWN COMPANIES ENGINEERING IS A MERITOCRACY SAYS CHRISTINE COMAFORD WHO OWNS AND RUNS CORPORATE COMPUTING INC A SOFTWARE DESIGN CONCERN IN BANNOCKBURN ILLINOIS IF YOU WORK HARD AND COME UP WITH GOOD IDEAS HIGH TECH IS THE BEST PLACE FOR A WOMAN WOMEN CHIEF EXECUTIVES ALSO OFTEN SET A TONE THAT'S APPEALING TO THEIR FEMALE TECHNICAL STAFF LISA ANN BARNES WHO DESIGNS SOFTWARE FOR MS COMAFORD'S COMPANY FEELS MORE COMFORTABLE AT A FEMALERUN COMPANY THAN SHE DID AT HER PREVIOUS COMPANY WHERE SHE DID ESSENTIALLY THE SAME JOB HERE I CAN BE MORE OF THE PERSON I NATURALLY AM SHE SAYS IN ANY CASE THE SITUATION ISN'T NEARLY AS BAD AS IT ONCE WAS MSCONWELL THE XEROX PHYSICIST WAS TURNED DOWN FOR JOBS IN THE MID1940S EVEN THOUGH SHE HAD A MASTER'S DEGREE BECAUSE SHE WAS MARRIED SHE ALSO HAD TO ACCEPT A JOB AS AN ENGINEER'S ASSISTANT BECAUSE THE WESTERN ELECTRIC ARM OF AMERICAN TELEPHONE & TELEGRAPH CO WHICH HIRED HER HAD NO CATEGORY FOR FEMALE ENGINEERS 9403180162 940318 FINANCING BUSINESS SHERRITT INC SHERRITT INC FORT SASKATCHEWAN ALBERTA PLANS TO OFFER 100 MILLION US OF DEBENTURES DUE IN 2014 AND 135 MILLION CANADIAN DOLLARS US99 MILLION OF NOTES DUE IN 2004 ACCORDING TO A SECURITIES AND EXCHANGE COMMISSION FILING SHERRITT SAID PROCEEDS WILL BE USED TO FINANCE THE PURCHASE OF IMPERIAL OIL LTD'S FERTILIZER ASSETS SHERRITT A FERTILIZER OIL AND GAS AND METALS CONCERN SAID GOLDMAN SACHS & CO WILL UNDERWRITE THE OFFERINGS 9403180161 940318 BUSINESS BRIEF COURTAULDS TEXTILES PLC PRETAX EARNINGS FELL 08 IN 1993 SALES WERE UP 38 COURTAULDS TEXTILES PLC REPORTED A SLIGHT DROP IN PRETAX PROFIT FOR 1993 AS THE SECOND HALF OF THE YEAR OFFSET THE WEAK PERFORMANCE SEEN IN THE FIRST SIX MONTHS COURTAULDS WHICH HAD REPORTED A PROFIT DROP OF 17 AT THE INTERIM STAGE SAID THE GAP WITH 1992 WAS NARROWED BY A 11 INCREASE IN SECONDHALF PROFIT PRETAX PROFIT FOR THE YEAR WAS 388 MILLION 581 MILLION DOWN 08 FROM 391 MILLION A YEAR EARLIER SALES WERE UP 38 TO 9231 MILLION FROM 8896 MILLION NOEL JERVIS CHIEF EXECUTIVE OFFICER SAID THAT HE EXPECTS CONDITIONS IN CONTINENTAL EUROPE TO HOLD BACK 1994'S FINANCIAL PERFORMANCE BUT NOTED THAT THERE IS A CONTINUING RECOVERY IN THE UK AND US ECONOMIES GERMANY FRANCE AND SPAIN WERE THE HARDEST HIT AND COURTAULDS DESCRIBED TRADING CONDITIONS IN EUROPE DURING 1993 AS EXTREMELY TOUGH 9403180160 940318 CLEARAIR RULE DEFIED BY VENEZUELA UNDER GATT MAY BE KILLED WASHINGTON THE CLINTON ADMINISTRATION IS PREPARING TO WITHDRAW A CLEANAIR REGULATION CHALLENGED BY VENEZUELA UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE RULE INTENDED TO REDUCE SMOGPRODUCING CHEMICALS REQUIRES VENEZUELA TO IMPOSE COSTLY CONTROLS ON GASOLINE IT SHIPS TO THE US IT WAS ISSUED IN FINAL FORM IN DECEMBER WITHDRAWING IT WOULD BE AN UNUSUAL REGULATORY MOVE AND WOULD LIKELY STIR OPPOSITION FROM ENVIRONMENTALISTS AND THE US DOMESTICOIL INDUSTRY OFFICIALS OF THE US TRADE REPRESENTATIVE THE STATE DEPARTMENT THE ENERGY DEPARTMENT AND THE ENVIRONMENTAL PROTECTION AGENCY CONCLUDED AT A WHITE HOUSE MEETING THIS WEEK THAT THE REGULATION WOULD HAVE TO BE WITHDRAWN AND MODIFIED BECAUSE IN ITS PRESENT FORM IT WAS LIKELY TO VIOLATE GATT A CLINTON ADMINISTRATION OFFICIAL SAID NO FINAL DECISION HAS BEEN MADE ON THE MATTER ALTERATION OF THE RULE IS VIGOROUSLY OPPOSED BY THE SUN CO AND SEVERAL OTHER DOMESTICOIL COMPANIES THAT COMPETE WITH VENEZUELA'S STATEOWNED PETROLEOS DE VENEZUELA SA THE VENEZUELANS HAVE ARGUED THAT THE RULE DISCRIMINATES AGAINST FOREIGN OIL COMPANIES BECAUSE THE FORMULA THEY MUST FOLLOW DIFFERS FROM THE ONE THAT APPLIES TO US COMPANIES SUPPORTERS OF THE RULE CONTEND THE DIFFERENCE IS NECESSARY BECAUSE FOREIGN REFINERY METHODS ARE HARDER FOR US REGULATORS TO POLICE SEPARATELY THE EPA SAID A VEHICLEINSPECTION PROGRAM APPROVED BY THE CALIFORNIA STATE LEGISLATURE RESOLVES A DISPUTE BETWEEN THE AGENCY AND THE STATE THE EPA CONTENDED THAT CALIFORNIA'S CURRENT PROGRAM WHICH ALLOWS SERVICESTATION OPERATORS TO CERTIFY THEIR OWN REPAIRS AS BEING IN COMPLIANCE WITH FEDERAL SMOG REQUIREMENTS VIOLATED THE 1990 CLEAN AIR ACT THE AGENCY SEVERAL TIMES THREATENED CUTOFF OF FEDERAL HIGHWAY FUNDS IF CALIFORNIA DIDN'T REQUIRE INDEPENDENT INSPECTION AND CERTIFICATION OF SUCH REPAIRS THE CALIFORNIA LAW REFLECTS A COMPROMISE REACHED BETWEEN FEDERAL REGULATORS AND STATE OFFICIALS UNDER IT 15 OF CALIFORNIA MOTOR VEHICLES WILL GO TO INSPECTORS WHO DO NOT PERFORM REPAIRS 9403180159 940318 PRUDENTIAL UNIT IS CLOSE TO AN ACCORD WITH CALIFORNIA ON PARTNERSHIPS FRAUD BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC IS CLOSE TO AN ACCORD WITH THE STATE OF CALIFORNIA THE LONE HOLDOUT IN AN OCTOBER AGREEMENT SETTLING PARTNERSHIPFRAUD CHARGES AGAINST THE BIG BROKERAGE FIRM THE STATE SETTLEMENT EXPECTED WITHIN 10 DAYS WOULD CAP MORE THAN FIVE MONTHS OF NEGOTIATIONS BETWEEN CALIFORNIA AND PRUDENTIAL PRUDENTIAL HAS BEEN EAGER TO COMPLETELY SIGN OFF ON THE BROAD GLOBAL SETTLEMENT WHICH HAD BEEN WORKED OUT WITH THE SECURITIES AND EXCHANGE COMMISSION AND THE 50 STATES UNDER THE ACCORD PRUDENTIAL AGREED TO APPLY A LIQUIDITY DISCOUNT OF AS MUCH AS 50 IN DETERMINING THE SOCALLED RESIDUAL VALUE OF PARTNERSHIPS SOLD TO 42000 INVESTORS IN CALIFORNIA SAID GARY MENDOZA CALIFORNIA'S SECURITIES CHIEF THIS MEANS THAT PRUDENTIAL ESSENTIALLY WILL LOP OFF AS MUCH AS HALF THE ASSET VALUE OF PARTNERSHIPS IN DETERMINING THEIR CURRENT VALUE RESIDUAL VALUE WHAT THE PARTNERSHIPS ARE REALLY WORTH PLAYS A MAJOR ROLE IN DETERMINING THE DAMAGES INVESTORS OUGHT TO RECEIVE FROM THEIR SOURED INVESTMENTS IT IS SIGNIFICANT BECAUSE MANY PARTNERSHIPS UNLIKE STOCKS OR BONDS ARE ILLIQUID AND THUS CAN'T EASILY BE RESOLD IN THE SECONDARY MARKETPLACE AND CONVERTED TO CASH FOR ITS PART THE BROKERAGE ARM OF PRUDENTIAL INSURANCE CO OF AMERICA SAYS THE LIQUIDITY DISCOUNT NOW WILL BE APPLIED TO PARTNERSHIP INVESTORS IN ALL 50 STATES THE AGREEMENT REACHED WITH THE HELP OF THE SEC AND AN INDEPENDENT CLAIMS ADMINISTRATOR EFFECTIVELY MEANS THAT INVESTORS WILL BE ABLE TO RECEIVE MORE IN RESTITUTION FOR THEIR PRUDENTIAL PARTNERSHIPS THAN THEY OTHERWISE WOULD HAVE IT ISN'T CLEAR HOW MUCH MORE MONEY PRUDENTIAL WILL END UP PAYING OUT BUT MR MENDOZA ESTIMATES THAT CALIFORNIA INVESTORS WILL RECEIVE AN ADDITIONAL 30 MILLION TO 50 MILLION AS A RESULT OF THE AGREEMENT STILL THE CALIFORNIA SETTLEMENT IS FAR LESS ONEROUS FOR PRUDENTIAL THAN ONE SET WITH THE STATE OF TEXAS ANOTHER HOLDOUT IN THAT ACCORD REACHED IN JANUARY PRUDENTIAL AGREED TO BE TEMPORARILY SUSPENDED FROM OPENING NEW BROKERAGE ACCOUNTS IN TEXAS AND TO PAY THE STATE 15 MILLION AS PART OF THE NEGOTIATIONS CALIFORNIA ALSO HAD THREATENED TO TEMPORARILY SUSPEND PRUDENTIAL FROM DOING NEW BUSINESS IN THE STATE THEY TOOK THAT POSSIBILITY VERY SERIOUSLY MR MENDOZA SAID BEFORE AGREEING TO THE RESIDUALPAYMENT MATTER CALIFORNIA STILL HAS A FEW NITS TO BE IRONED OUT IN THE SETTLEMENT PAPERS PRESENTED YESTERDAY BY PRUDENTIAL MR MENDOZA SAID BUT HE ADDED I'D BE VERY VERY SURPRISED IF THIS DEAL FALLS OUT OF BED A PRUDENTIAL SPOKESMAN SAID WE'RE HAPPY THAT WE'RE ABOUT TO REACH FINAL AGREEMENT WITH THE LAST OF THE 50 STATES AS WELL AS FEDERAL REGULATORS CONCERNING OUR PAST PROBLEMS FEDERAL AND STATE REGULATORS HAD ACCUSED PRUDENTIAL OF MISLEADING INVESTORS ON THE RISKS AND RETURNS OF 815 BILLION OF PARTNERSHIPS SOLD IN THE 1980S AS PART OF THE GLOBAL SETTLEMENT PRUDENTIAL AGREED TO PAY AT LEAST 330 MILLION IN A REPARATIONS FUND FOR DEFRAUDED CLIENTS 9403180158 940318 WEIGHT OF AVERAGE YOUNG US ADULT ROSE 10 POUNDS IN SEVENYEAR PERIOD A WALL STREET JOURNAL NEWS ROUNDUP TAMPA FLA AP THE AVERAGE YOUNG AMERICAN ADULT GAINED A SHOCKING 10 POUNDS IN THE PAST SEVEN YEARS DESPITE A LOWCHOLESTEROL LOWFAT DIET THE GOVERNMENT REPORTED THIS IS BAD NEWS SAID CORA E LEWIS AN EPIDEMIOLOGIST AT THE UNIVERSITY OF ALABAMA IN BIRMINGHAM IT'S NOT JUST PEOPLE GETTING OLDER AND HEAVIER BUT THE POPULATION IS GETTING HEAVIER SHE TOLD A MEETING OF THE AMERICAN HEART ASSOCIATION THE DIRECTOR OF THE FEDERAL STUDY DIANE BILD OF THE NATIONAL INSTITUTES OF HEALTH SAID THE WEIGHT GAIN WAS TOTALLY UNEXPECTED IT WAS PARTICULARLY SURPRISING BECAUSE THE AMERICAN DIET HAS IMPROVED IN RECENT YEARS AND CHOLESTEROL LEVELS HAVE BEEN DROPPING IN 199293 DR LEWIS FOUND THAT THE AVERAGE WEIGHT OF ADULTS AGES 2530 WAS 171 POUNDS IN 198586 THE AVERAGE WEIGHT WAS 161 POUNDS FOR PEOPLE THAT AGE PEOPLE'S WEIGHT NORMALLY RISES AS THEY AGE BUT THE EFFECT DR LEWIS WAS TALKING ABOUT WASN'T THE RESULT OF AGING IT WAS SEEN IN TWO GROUPS OF YOUNG ADULTS OF THE SAME AGES THAT AMOUNT OF CHANGE IN THAT TIME PERIOD IS SHOCKING DR LEWIS SAID THE STUDY DID NOT ADDRESS THE CAUSE OF THE WEIGHT GAIN BUT DR LEWIS SPECULATED THAT A DECLINE IN PHYSICAL ACTIVITY WAS LIKELY RESPONSIBLE HOWEVER A FORTHCOMING STUDY FROM THE NATIONAL CENTER FOR HEALTH STATISTICS CONCLUDES THAT AMERICANS ARE CONSUMING MORE CALORIES THOUGH THE AMOUNT OF CHOLESTEROL AND FAT IN THE AMERICAN DIET IS DROPPING A SUMMARY OF THAT STUDY APPEARED FEB 25 IN THE MORBIDITY AND MORTALITY WEEKLY REPORT A CDC PUBLICATION BECKY HUFF LANKENAU A NUTRITIONIST AT THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA SAID THE NEW STUDY ILLUSTRATES THE NEED FOR EDUCATING AND ENCOURAGING YOUNG PEOPLE TO EXERCISE PROBABLY THE SAFEST AND MOST POSITIVE THING WOULD BE TO NURTURE THE IDEA OF PHYSICAL ACTIVITY SHE SAID THE STUDY BY DR LEWIS AND DR BILD AND THEIR COLLEAGUES WAS BASED ON DATA ON 5115 PEOPLE EQUALLY DIVIDED AMONG BLACKS AND WHITES AND MEN AND WOMEN THE PARTICIPANTS CAME FROM CHICAGO MINNEAPOLIS BIRMINGHAM AND OAKLAND CALIF WHILE WEIGHT CLIMBED IN THE GROUP IN 199293 CHOLESTEROL LEVELS DROPPED NINE POINTS PROBABLY BECAUSE THE DIETS CONTAINED LESS CHOLESTEROL AND SATURATED FAT DR BILD SAID THAT IMPROVEMENT IN DIET SHOULD REDUCE THE HEARTDISEASE RISKS OF THOSE YOUNG ADULTS BUT IT'S NOT KNOWN WHETHER THE WEIGHT GAIN WILL COUNTERACT THAT BENEFIT SHE SAID THE DROP IN CHOLESTEROL LEVELS WAS ESPECIALLY STRONG IN THE BLACK PARTICIPANTS THE DECREASE WAS ABOUT SIX TO SEVEN POINTS IN WHITES AND ABOUT 12 POINTS IN BLACKS DR BILD SAID DR LEWIS ATTRIBUTED THE APPARENT DECLINE IN PHYSICAL ACTIVITY TO THE GROWING NUMBER OF AMERICANS WORKING IN OFFICES WHERE THEY ARE LESS LIKELY TO BE PHYSICALLY ACTIVE THAN THEY MIGHT BE IN MANUFACTURING JOBS OR OTHER WORK THE GROWTH OF THE SUBURBS ALSO HAS MADE PEOPLE MORE LIKELY TO DRIVE CARS AND LESS LIKELY TO WALK SEVERAL BLOCKS TO A TRAIN STATION OR A BUS STOP 9403180157 940318 EUROPEAN BEER MARKET SLUMPED IN 1993 THOUGH PREMIUM BRANDS SPURRED SALES BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL A DEEP ECONOMIC RECESSION AND NASTY WEATHER TOOK THE FIZZLE OUT OF BEER CONSUMPTION THROUGHOUT EUROPE LAST YEAR ALTHOUGH A GROWING CONSUMER PREFERENCE FOR HIGHERMARGIN PREMIUM BREWS HELPED BOLSTER DOLLAR SALES THE EUROPEAN BEER MARKET SHOWED A DRASTIC DROP IN CONSUMPTION LAST YEAR SAYS JOAN DELANEY THE SECRETARY GENERAL OF THE CONFEDERATION OF EUROPEAN UNION BREWERIES IN BRUSSELS BEER USUALLY TENDS TO BE IMPERVIOUS TO RECESSION IT'S A LITTLE BIT OF COMFORT AND WHEN PEOPLE START TO GIVE THAT UP THAT MEANS THINGS ARE REALLY BAD ALTHOUGH CONSUMPTION WAS DOWN AN ESTIMATED 6 TO 8 THROUGHOUT EUROPE IN 1993 LED BY FALLS IN BRITAIN THE NETHERLANDS AND GERMANY DATA COMPILED BY THE MARKETRESEARCH FIRM AC NIELSEN INDICATE THAT DOLLAR SALES ACTUALLY ROSE AN AVERAGE OF 25 IN 16 EUROPEAN COUNTRIES WITH MANY ECONOMIES THROUGHOUT EUROPE ON THE MEND BEER SALES MAY IMPROVE THIS YEAR PARTICULARLY IN SOUTHERN EUROPEAN COUNTRIES WHERE TOURISM IS LIKELY TO GIVE CONSUMPTION A LIFT AND IN IRELAND WHERE BEER DRINKING IS EXPECTED TO INCREASE DURING THE WORLD CUP SOCCER GAMES THROUGHOUT EUROPE THOUGH ANALYSTS EXPECT THE FROTH TO SINK ON NONALCOHOLIC BEER AS CONSUMERS RETURN TO THE SOLID TASTE OF THE REAL THING PRODUCTION IS DECLINING THROUGHOUT EUROPE SAYS JOHN WAKELY AN ANALYST AT LEHMAN BROTHERS IN LONDON BUT ON THE POSITIVE SIDE PREMIUM BEER IS GROWING IN ALMOST EVERY COUNTRY PEOPLE DRINK LESS BUT DRINK BETTER TAKE HEINEKEN NV THE DUTCH BREWER THAT REPORTED LAST WEEK A 12 INCREASE IN 1993 NET PROFIT BEFORE EXTRAORDINARY ITEMS DESPITE A STEEP FALL IN CONSUMPTION IN ITS KEY EUROPEAN MARKET THE INCREASE CAN BE ATTRIBUTED TO CONSUMERS WHO UPGRADE THEIR BRAND OF BEER SAYS MR WAKELY SOUTHERN EUROPE SHOWED A SHARP INCREASE IN DOLLAR SALES ALTHOUGH PRODUCTION AND CONSUMPTION VOLUMES WERE DOWN NOT ONLY DID FEWER FOREIGNERS VISIT SOUTHERN EUROPE BUT NATIONALS FREQUENTED BARS LESS THAN IN PAST YEARS BUYING INSTEAD MORE BEER FROM SUPERMARKETS AND OTHER RETAILERS ANALYSTS WARN THAT AN EXPECTED SURGE IN TOURISM IN SOUTHERN EUROPE THIS YEAR MAY NOT SPUR SALES OF LOCAL BREWS AS MUCH AS EXPECTED BECAUSE OF TOURISTS' PREFERENCE FOR FAMILIAR BRANDS IN THE CASE OF SPAIN 80 OF BEER SALES ARE MADE IN BARS AND RESTAURANTS AS BEER DRINKING IN BARS FALLS DAMPED BY HIGHER PRICES LOWER DISPOSABLE INCOME AND THE RECENT INTRODUCTION OF PRIVATE TELEVISION SALES INCREASE AT SUPERMARKETS BUT NOT ENOUGH TO OFFSET THE FALL THE REASON INDUSTRY ANALYSTS SAY IS BECAUSE PEOPLE DON'T TEND TO DRINK AS MUCH BEER AT HOME AS THEY DO ON A NIGHT OUT ACCORDING TO NIELSEN WHICH DRAWS HEAVILY ON DATA PROVIDED BY BIG RETAILERS SALES IN SPAIN CLIMBED 57 LAST YEAR IN DOLLAR TERMS CONSUMPTION FELL THOUGH BECAUSE SPAIN LAST YEAR RAISED THE EXCISE LEVY ON BEER 129 AND INCREASED VALUEADDED TAX BY TWO POINTS IN AN ATTEMPT TO BRING FISCAL POLICY IN LINE WITH THE EU FOR US IT'LL BE GOOD NEWS IF THE VOLUME OF BEER SALES REMAINS FLAT THIS YEAR SAYS ALFONSO MARQUES MANAGING DIRECTOR OF THE SPANISH BREWERIES ASSOCIATION SPAIN'S 1994 ECONOMIC GROWTH WILL LIKELY BE SPURRED BY A RISE IN CONSUMER SPENDING IF SPANIARDS AS EXPECTED DIG INTO THEIR SAVINGS AND SPEND MORE IT'LL BE FOR CONSUMER GOODS NOT FOR BEER SAYS A MADRID ANALYST IN THE LONG RUN THOUGH THERE MAY STILL BE A WAY FOR BEER SALES TO GO BECAUSE THE SWITCH FROM WINE TO BEER STILL HAS SOME GAS HE SAYS IN FRANCE LIKE SPAIN AND ITALY BARS AND CAFES HAVE RAISED PRICES IN RECENT YEARS TO OFFSET THE FALL IN SALES VOLUME CAUSED BY THE GROWING PREFERENCE FOR SPENDING MORE TIME AT HOME IN THE EVENINGS THAT PRICE INCREASE CONTRIBUTED TO EVEN STEEPER FALLS IN CONSUMPTION AND AN EVENTUAL CHANGE IN CONSUMER HABITS ACCORDING TO NIELSEN DOLLAR SALES SURGED 21 IN PORTUGAL LAST YEAR ALTHOUGH CONSUMPTION IN VOLUME TERMS SLIPPED ABOUT 3 FROM 1992 HURT BY AN INCREASE IN EXCISE AND VALUEADDED TAXES ALTHOUGH PORTUGAL IS STILL A WINE COUNTRY THERE HAS BEEN A CHANGE OF HABITS MAINLY AMONG YOUNG PEOPLE SAYS AMERICO MARTINS THE MANAGING DIRECTOR OF THE PORTUGUESE BREWERY ASSOCIATION PORTUGAL HE SAYS RAISED ANNUAL PER CAPITA BEER CONSUMPTION FROM ONE LITER IN THE 1950S TO 35 LITERS IN THE MID1970S AND FINALLY TO ITS CURRENT 68 LITERS STILL WAY BELOW GERMANY'S 140 LITERS A YEAR A SUDDEN RISE IN WINE PRICES COUPLED WITH A BLITZ OF ADVERTISING HELPED BOOST BEER DRINKING AND NARROW THIS GAP WITH NORTHERN EUROPE IN THE LATE 1980S IN IRELAND GROWING IMPORTS OF CHEAPER WINE FROM OTHER EU COUNTRIES IS UNDERCUTTING BEER SALES BY VOLUME WHILE MORE PEOPLE STAY HOME IN THE EVENINGS INSTEAD OF VISITING THE LOCAL PUB ONE OF THE MAIN REASONS IS THAT AUTHORITIES ARE CRACKING DOWN ON DRUNK DRIVERS BECAUSE OF THIS TREND BEER SALES HAVE RISEN IN SUPERMARKETS AND OTHER STORES A BIG CHANGE FOR A COUNTRY WHERE MORE THAN 85 OF BEER HAS TRADITIONALLY BEEN SOLD IN BARS CAFES AND PUBS ACCORDING TO NIELSEN DATA MOST OF WHICH IS BASED ON FIGURES FROM BIG RETAILERS DOLLAR SALES SURGED 17 IN IRELAND LAST YEAR THERE'S BEEN A TREND TOWARD PACKAGED BEER AND AWAY FROM DRAFT SAYS AILISH FORD OF THE IRISH BREWERS' ASSOCIATION THE POPULARITY OF PREMIUMLAGERS HAS RISEN THERE'S MORE DRINKING FROM BOTTLES THAN GLASSES ALSO TO THE NORTH SWITZERLAND SUFFERED A 78 PLUNGE IN DOLLAR SALES WHICH ANALYSTS ATTRIBUTE TO THE BREAKDOWN OF AN INFORMAL CARTEL THAT KEPT BEER PRICES HIGH IN SWEDEN HIGH EXCISE TAXES ON LIQUOR CONTINUED TO ENCOURAGE CONSUMERS TO SWITCH TO BEER FROM OTHER ALCOHOLIC BEVERAGES ALTHOUGH RECESSION KEPT THE RISE IN CHECK LOWER PRICES IN FRANCE ATTRACTED MANY BELGIANS FROM OVER THE BORDER IN SEARCH OF CHEAPER BEER PUSHING DOLLAR SALES IN BELGIUM DOWN 34 LAST YEAR ALTHOUGH BEER PRODUCTION AND CONSUMPTION FELL IN GERMANY IN 1993 THE COUNTRY'S MARKET IS STILL FOAMING NOT ONLY ARE BIG BREWERIES RUSHING TO EASTERN EUROPE IN SEARCH OF NEW OPPORTUNITIES BUT MANY SMALL PRODUCERS ARE FORMING ALLIANCES WITHIN THE DOMESTIC MARKET TO INCREASE ECONOMIES OF SCALE AND IMPROVE EFFICIENCY THAT COULD LEAD TO A PROCESS OF CONCENTRATION ANALYSTS SAY MUCH THE WAY IT DID IN NEIGHBORING AUSTRIA THE BIGGEST QUESTION RIGHT NOW IS WHAT WILL HAPPEN TO GERMANY SAYS AN INDUSTRY ANALYST IN LONDON GERMANY HAS THE BIGGEST MARKET AND THE BEST BEER BUT IT'S A COUNTRY WHERE PRODUCTION COSTS ARE TOO HIGH NOW IF THE GERMANS START TO GET MORE EFFICIENT OTHER PRODUCERS WILL REALLY HAVE TO START TO WORRY 9403180156 940318 BIG BOARD REVEALS PROGRAM TRADERS IN MARCH 2 TUMBLE BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ACTIVE COMPUTERAIDED PROGRAM SELLING LED BY KIDDER PEABODY & CO TOOK PLACE DURING THE MARCH 2 MORNING MARKET PLUNGE ACCORDING TO NEW YORK STOCK EXCHANGE STATISTICS IN ONE OF WALL STREET'S MOST VOLATILE DAYS IN 1994 THE DOW JONES INDUSTRIAL AVERAGE ON MARCH 2 PLUNGED 50 POINTS IN THE FIRST HOUR BEFORE REBOUNDING STRONGLY TO FINISH THE DAY WITH A GAIN OF NEARLY 23 POINTS INVESTORS HAVE BEEN CURIOUS ABOUT WHICH PROGRAM TRADERS WERE ACTIVE DURING THE PLUNGE PROGRAM TRADING IS THE RAPID BUYING OR SELLING OF A GROUP OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL OF 1 MILLION OR MORE THE STATISTICS RELEASED YESTERDAY PROVIDE AMMUNITION FOR BOTH PROGRAMTRADING CRITICS AND DEFENDERS THE NUMBERS SHOW PROGRAM TRADING COULD HAVE ACCELERATED THE MARKET'S DECLINE YET PROGRAM TRADERS WERE ALSO BUYERS DURING THE FIRST HOUR OF TRADING ON MARCH 2 PERHAPS HELPING THE RECOVERY THAT BEGAN AT THE END OF THE HOUR ALL TOLD 18 FIRMS REPORTED DOING PROGRAM TRADES DURING THE HOUR OVERALL THERE WERE 103 MILLION SHARES TRADED AS PART OF PROGRAM TRADING STRATEGIES 61 MILLION BUYS 42 MILLION SELLS OR 116 OF THE EXCHANGE'S TOTAL FOR THE HOUR MOST OF THE TRADING WAS PART OF INDEX ARBITRAGE IN WHICH TRADERS BUY AND SELL STOCKS ALONG WITH STOCKINDEX FUTURES AND OPTIONS CRITICS BLAME PROGRAM TRADING FOR ACCELERATING MARKET MOVEMENTS AND SEVERAL BROKERAGE FIRMS CUT BACK ON INDEX ARBITRAGE IN PARTICULAR AFTER THE 1987 STOCK MARKET CRASH KIDDER PEABODY A UNIT OF GENERAL ELECTRIC CO REPORTED NEARLY 15 MILLION SHARES SOLD DURING THE MARCH 2 OPENING HOUR VIRTUALLY ALL OF IT AS PART OF INDEX ARBITRAGE TRADING FOR THE FIRM'S OWN ACCOUNT KIDDER ALSO BOUGHT 219000 SHARES THE MOSTACTIVE PROGRAM TRADING FIRM WAS SUSQUEHANNA INVESTMENT GROUP WITH 17 MILLION SHARES TRADED BUT 16 MILLION OF THAT WAS ON THE BUY SIDE ASKED FOR COMMENT ON THE SELLING KIDDER PEABODY SAID IT DOESN'T DISCUSS ITS TRADING AS A MATTER OF POLICY BUT THE FIRM DID ASSERT THAT DURING THE FIRST 20 MINUTES OF TRADING ON MARCH 2 IT WAS BUYING NOT SELLING AND THAT ITS SELLING OCCURRED WHILE THE MARKET WAS GOING BACK UP AGAIN THE NEXTHEAVIEST SELLER WAS NOMURA SECURITIES 621000 SHARES SOLD BUT 487000 BOUGHT FOLLOWED BY CS FIRST BOSTON INC WITH AN EVEN AMOUNT OF BUYING AND SELLING ALL THESE FIRMS TRADED FOR THEIR OWN ACCOUNTS RATHER THAN FOR CUSTOMERS THE BIG BOARD RELEASES THESE SPECIAL BREAKDOWNS OF PROGRAM TRADING ALONG WITH ITS REGULAR WEEKLY PROGRAMTRADING TALLY WHENEVER THE INDUSTRIAL AVERAGE MOVES UP OR DOWN AT LEAST 50 POINTS WITHIN AN HOUR THE EXCHANGE BRIEFLY STOPPED RELEASING THE SPECIAL BREAKDOWNS BUT DECIDED TO REINSTATE THE INFORMATION AFTER A WALL STREET JOURNAL ARTICLE REPORTED ON THE CUTBACK LAST WEEK 9403180155 940318 PEPPERAND SALT IN HEARING THAT I'VE BEEN SLAMDUNKED THE OTHER ONE I'VE TOSSED 9403180154 940318 VIETNAMESE PLANT DOES COUNTRY PROUD VENTURE OVERCOMES OBSTACLES OUTSHINES PHILIPPINE RIVALS BY BARRY WAIN STAFF REPORTER OF THE WALL STREET JOURNAL HO CHI MINH CITY VIETNAM SWEATING WORKERS SQUAT ON A BARE FLOOR HAMMERING METAL INTO SHAPE OTHERS HUNCH OVER JIGS ON ROUGH BENCHES SPARKS FLY AS WELDERS JOIN RODS INTENT ON THEIR WORK THE MEN HARDLY SPARE A GLANCE AS THEIR BOSS SHOWS A VISITOR AROUND HIGH TECH IT ISN'T EVERYTHING FROM THE DELIVERY OF IRON STRIPS TO THE FINISHING TOUCHES ON A RANGE OF HANDICRAFTS IS DONE BY HAND THE EQUIPMENT IS OLD AND THE FACTORY ITSELF IS A CONVERTED WAREHOUSE AND SAWMILL THIS MODEST VENTURE BY A BRITISH ENTREPRENEUR PROFITABLE IN ITS FIRST YEAR SAYS A LOT ABOUT VIETNAM WHICH IS TRYING TO ATTRACT FOREIGN INVESTMENT AS IT MAKES THE TRANSITION FROM CENTRAL PLANNING TO A MARKET ECONOMY A LOWCOST INDUSTRIOUS AND EDUCATED WORK FORCE IS ONE OF ITS STRENGTHS OMINOUSLY IT ALSO SAYS SOMETHING ABOUT THE PHILIPPINES WHICH IS ATTEMPTING TO OVERCOME 30 YEARS OF MISMANAGEMENT AND MISSED OPPORTUNITIES TO JOIN THE RANKS OF NATIONS THAT HAVE FORGED WHAT IS KNOWN AS THE EAST ASIAN ECONOMIC MIRACLE WITH NO CHANCE OF CATCHING NEIGHBORS SUCH AS SINGAPORE MALAYSIA THAILAND AND INDONESIA THE PHILIPPINES MUST COMPETE DIRECTLY WITH THE NEXT WAVE OF POTENTIAL WINNERS AMONG THEM VIETNAM AND CHINA CONTINENTAL INDOCHINE IMPORT EXPORT LTD'S INVESTMENT IN THE SUBURBS OF HO CHI MINH CITY PROVIDES A RARE CHANCE TO COMPARE HOW THE PHILIPPINES AND VIETNAM ARE SHAPING UP THE PLANT MAKES LABORINTENSIVE PRODUCTS IDENTICAL TO ONES PRODUCED BY AN ASSOCIATED COMPANY NEAR MANILA AS FAR AS CLIVE FAIRFIELD CONTINENTAL'S OWNER IS CONCERNED THE CONTEST IS ALL OVER HIS STARTUP VENTURE HAS SHOWN IT COULD PUT ITS ESTABLISHED PHILIPPINE COMPETITORS OUT OF BUSINESS OUR SELLING PRICE IN VIETNAM IS THE SAME AS THE MANUFACTURED PRICE IN THE PHILIPPINES HE SAYS I THINK IT IS A MICROCOSM OF THE SITUATION GENERALLY ANALYSTS CAUTION THAT IT MIGHT BE UNFAIR AND PREMATURE TO WRITE OFF THE PHILIPPINES AFTER ALL ONE EXAMPLE SCARCELY PROVES A CASE BESIDES THE PHILIPPINE GOVERNMENT AND OTHERS CITE GAINS ON SEVERAL FRONTS REAL GROSS NATIONAL PRODUCT IS EXPECTED TO EXPAND 35 TO 45 THIS YEAR AND ONE BROKERAGE FIRM FORECASTS 27 AVERAGE GROWTH IN CORPORATE EARNINGS THE STOCK MARKET ROCKETED MORE THAN 150 LAST YEAR MAKING IT ASIA'S TOP PERFORMER AND THE THIRDBEST IN THE WORLD STILL A STUDY OF CONTINENTAL'S EXPERIENCE IS SOBERING FOR THE PHILIPPINE FAITHFUL BECAUSE IT AFFORDS A COMPARISON OF SOME OF THE ELEMENTS THAT DETERMINE A COUNTRY'S PROGRESS ITS WORK ETHIC INFRASTRUCTURE RAWMATERIAL SUPPLIES AND BUREAUCRACY VIETNAM WINS EASILY ON THE FIRST THREE COUNTS AND SHARES DUBIOUS HONORS OVER RED TAPE GERRARD HEINEN A 36YEAROLD PHILIPPINEBASED DUTCH BUSINESSMAN WHO HAS SWITCHED SOME OF HIS PHILIPPINE HANDICRAFT PRODUCTION TO CONTINENTAL SAYS VIETNAM'S MATERIALS AND LABOR COST LESS AND ITS WORKERS ARE 50 MORE PRODUCTIVE TYPICALLY CONTINENTAL MAKES AN ORNAMENTAL REPRODUCTION OF A TURNOFTHECENTURY PRAM OR BABY BUGGY AT HALF THE PRICE OF HIS REPROCRAFTERS INC IT'S CHEAPER IT'S BETTER MR HEINEN SAYS OF VIETNAM THE 49YEAROLD MR FAIRFIELD WHO HAS BEEN INVOLVED IN TRADING AND MANUFACTURING IN SOUTHEAST ASIA FOR 26 YEARS HAS OPENED CONTINENTAL OFFICES IN VIETNAM LAOS AND CAMBODIA HE OBTAINED VIETNAMESE GOVERNMENT APPROVAL IN 1991 FOR THE HANDICRAFT FACTORY AS A 100 FOREIGNOWNED ENTERPRISE WHICH MEANS HE IS OBLIGED TO EXPORT ITS ENTIRE OUTPUT THE COMPANY LEASED LAND AND SOME DILAPIDATED BUILDINGS AT THU DUC FIVE MILES NORTH OF DOWNTOWN HO CHI MINH CITY AND BEGAN TRAINING THE FIRST BATCH OF RECRUITS IN SEPTEMBER 1992 AFTER THE PREMISES WERE RENOVATED PRODUCTION STARTED EARLY LAST YEAR INITIALLY THE FACTORY MADE ONLY ONE ITEM THE ANTIQUELOOKING PRAM IN THREE DIFFERENT SIZES CUSTOMERS IN THE US AND EUROPE USUALLY SIT A POTTED PLANT IN THE PRAM AND USE IT TO DECORATE THEIR HOMES TODAY THERE ARE 12 DIFFERENT PRODUCTS USING LOCAL RATTAN TIMBER RUBBER PAINT LACQUER AND FABRIC AS WELL AS METAL RECYCLED FROM THE WAR PRODUCTION ROSE FROM 1000 PRAMS IN FEBRUARY LAST YEAR TO A PEAK OF 25000 IN OCTOBER WHILE THE NUMBER OF EMPLOYEES CLIMBED TO 300 FROM 60 THE COMPANY EXPECTS TO TURN OUT 50000 PRAMS A MONTH THIS YEAR IN ADDITION TO OTHER LINES AND PROJECTS ITS WORK FORCE WILL TOTAL 700 BY THE END OF DECEMBER WITH ANOTHER 700 EMPLOYED BY SUBCONTRACTORS MR FAIRFIELD SAYS TURNOVER THIS YEAR WILL REACH 4 MILLION COMPARED WITH 1 MILLION LAST YEAR AND IS LIKELY TO RISE TO 6 MILLION OR 7 MILLION NEXT YEAR BOOSTED BY AMERICAN ORDERS THAT HAVE ARRIVED SINCE THE US EMBARGO WAS LIFTED LAST MONTH HE DECLINES TO GIVE FURTHER DETAILS BEYOND CONFIRMING THAT THE BUSINESS IS PROFITABLE CHRIS REID 50 CONTINENTAL'S COUNTRY MANAGER WHO RUNS THE PLANT WITH THE HELP OF HIS VIETNAMESE WIFE GIVES MUCH OF THE CREDIT TO THE EMPLOYEES THEY'VE LEARNED QUICKLY HE SAYS THEIR BEST EFFORT BEING TO RETOOL TO PRODUCE A NEW PRODUCT A MINIATURE BICYCLE IN JUST FIVE WEEKS WE WENT FROM ZERO TO 150 BICYCLES A DAY HE SAYS THAT'S PRETTY IMPRESSIVE WORKERS HAVE EVEN SUGGESTED REFINEMENTS TO THE PHILIPPINEDESIGNED ITEMS FOR INSTANCE IT WAS THEIR IDEA TO ADD A TREAD TO THE RUBBER TIRES ON THE BICYCLE WHEN MR REID RETURNED FROM MANILA IN DECEMBER WITH A REPRODUCTION OF A VICTORIAN PHAETON OR WHEELED CARRIAGE EMPLOYEES TOOK ONLY TWO WEEKS TO PRODUCE A HALFSIZE VERSION WITH AXLES AND SPOKES PERFECTLY PROPORTIONED AN ADDED BONUS WAS THE DISCOVERY OF A QUALIFIED ACCOUNTANT IN THE PAINTING DEPARTMENT HE'S NOW IN CHARGE OF STOCK CONTROL ANOTHER WORKER TURNED OUT TO BE TRAINED IN TECHNICAL DRAWING PART OF THE REASON THE STAFF WAS ABLE TO COPY THE PHAETON SO FAITHFULLY THE DECISION LAST AUGUST TO SWITCH FROM PAYING THE LEGAL MINIMUM WAGE OF 35 A MONTH TO PIECE RATES WAS A MAJOR INNOVATION OUTPUT IMMEDIATELY SOARED 45 GIVEN A CHOICE OF WORKING OVERTIME OR SEEING ANOTHER SHIFT ADDED TO THE PAYROLL WORKERS VOTED UNANIMOUSLY TO DO THE JOB THEMSELVES MOST EMPLOYEES HAVE EFFECTIVELY DOUBLED THEIR INCOME SAYS MR REID WHO HAS FIRED ONLY THREE FOR PILFERING AND LAZINESS THE FACTORY HAS AVOIDED THE STRIKES THAT HAVE HIT SOME OTHER FOREIGN MANUFACTURERS IN VIETNAM IF YOU TREAT THE VIETNAMESE SENSITIVELY THEY RESPOND HE SAYS IF YOU TRY SMACKING THEM AROUND THE EARS YOU'RE LOOKING FOR TROUBLE IT HASN'T BEEN ALL EASY SAILING THOUGH CONTINENTAL TOOK 18 MONTHS TO OBTAIN ITS LICENSE IN THE FIRST PLACE A HINT OF VIETNAM'S CUMBERSOME AND SOMETIMES CORRUPT BUREAUCRACY IN THE MIDDLE OF LAST YEAR THE GOVERNMENT BANNED WOOD EXPORTS TEMPORARILY HALTING THE COMPANY'S SHIPMENTS AND AFFECTING ITS CHRISTMAS ORDERS BECAUSE A WOODEN FRAME ACCOUNTS FOR ABOUT 2 OF A PRAM IT TOOK NEARLY A MONTH TO GET THE MATTER CLARIFIED AND THE PRODUCTION LINE WORKING AGAIN 9403180153 940318 SKANSKA PLANS TO SELL PROPERTY STOCKHOLM SWEDISH CONSTRUCTION AND PROPERTY MANAGEMENT COMPANY SKANSKA AB SAID IT IS IN TALKS TO SELL ITS OSLO CITY RETAIL AND OFFICE PROPERTY TO NORWEGIAN INSURANCE GROUP VITAL AS FOR 13 BILLION NORWEGIAN KRONER 1777 MILLION SKANSKA SAID IT EXPECTS TO COMPLETE THE DEAL IN APRIL 9403180152 940318 CALVIN KLEIN STORES IN JAPAN NEW YORK CALVIN KLEIN INC SAID IT TEAMED UP WITH SEVERAL JAPANESE COMPANIES TO ESTABLISH A JOINT VENTURE TO OPEN 12 CALVIN KLEIN STORES IN JAPAN OVER THE NEXT FIVE YEARS THE CLOSELY HELD APPAREL COMPANY'S NEW PARTNERS HAVE EXPERTISE IN VARIOUS ASPECTS OF RETAILING AND APPAREL MANUFACTURING THE PARTNERS IN THE NEW COMPANY CALLED CALVIN KLEIN JAPAN CO INCLUDE MITSUI & CO WITH A 40 EQUITY STAKE ONWARDKASHIYAMA CO WITH 30 ISETAN CO WITH 10 AND OKANO ASSOCIATES CO WITH 5 CALVIN KLEIN WILL HAVE A 15 SHARE 9403180151 940318 BROOKE GROUP LTD TO SETTLE LAWSUIT OVER LEBOW DEALS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL MIAMI BROOKE GROUP LTD SAID IT REACHED AN AGREEMENT TO SETTLE A SHAREHOLDER SUIT CHALLENGING PAY ARRANGEMENTS AND MILLIONS OF DOLLARS OF PERSONAL LOANS TO COMPANY CHAIRMAN BENNETT S LEBOW THE SETTLEMENT INCLUDES ARRANGEMENTS LIMITING HIS FUTURE COMPENSATION BROOKE GROUP SAID AND MR LEBOW WILL RELINQUISH ABOUT 625 MILLION HE HAD BEEN OWED BY THE COMPANY MR LEBOW WHO CONTROLS ABOUT 61 OF BROOKE GROUP'S VOTING STOCK HAS PROFITED HANDSOMELY FROM THE TOBACCO REAL ESTATE AND INVESTMENTS COMPANY EVEN THOUGH IT HAD BEEN REPORTING HUGE LOSSES LAST YEAR HE OWED THE COMPANY MORE THAN 20 MILLION IN PERSONAL DEBT THAT THE LAWSUIT ALLEGED HE HAD FAILED TO REPAY ON A TIMELY BASIS OR HAD REPAID WITH OTHER BORROWINGS THE SUIT HAD BEEN FILED LAST MAY IN DELAWARE CHANCERY COURT AS A DERIVATIVE ACTION AGAINST OFFICERS AND DIRECTORS ON BEHALF OF THE COMPANY ITSELF BROOKE GROUP SAID MR LEBOW HAD REPAID MORE THAN 16 MILLION IN PRINCIPAL AND INTEREST OWED THE COMPANY OR A SUBSIDIARY A SPOKESMAN SAID MR LEBOW HAS COMMITTED TO REPAY ALL BUT 1 MILLION OF THE REMAINING DEBT MR LEBOW WAS ABLE TO REPAY HIS OBLIGATIONS TO THE COMPANY MAINLY DUE TO AN AGREEMENT LAST FALL INVOLVING BROOKE GROUP'S SPINOFF OF ITS SKYBOX INTERNATIONAL INC SPORTS AND ENTERTAINMENTTRADING CARD UNIT WHILE OTHER BROOKE GROUP SHAREHOLDERS RECEIVED SKYBOX SHARES MR LEBOW RECEIVED BROOKE GROUP PREFERRED SHARES CARRYING A 30 MILLION ONETIME CASH DIVIDEND MR LEBOW HAS USED 16 MILLION OF THAT PAYMENT TO CANCEL DEBT OWED THE COMPANY AND WILL RELINQUISH ANOTHER 625 MILLION OF THE PAYMENT ANOTHER 4 MILLION OR SO WILL RETIRE LIENS AND OTHER OBLIGATIONS LEAVING MR LEBOW WITH 375 MILLION FROM THE SPECIAL DIVIDEND PAYMENT SKYBOX SHARES WHICH INITIALLY TRADED AT ABOUT 7 CLOSED YESTERDAY AT 1025 UP 375 CENTS IN THE OVERTHECOUNTER MARKET EVEN THOUGH BROOKE GROUP HOLDERS RECEIVED SKYBOX STOCK WHILE MR LEBOW RECEIVED CASH A BROOKE GROUP SPOKESMAN SAYS SHAREHOLDERS BENEFITED BECAUSE MR LEBOW RECEIVED PAYMENTS BASED ON ONLY 20 OF HIS COMPANY HOLDINGS UNDER THE SETTLEMENT MR LEBOW'S FUTURE COMPENSATION WILL BE TIED TO CORPORATE PERFORMANCE UNLESS BROOKE GROUP SHARES GAIN MORE THAN 10 ANNUALLY HE WOULD BE LIMITED TO A 10 ANNUAL RAISE HE WAS PAID 15 MILLION IN 1992 THE MOST RECENT FIGURE AVAILABLE WHEN THE COMPANY HAD A NET LOSS OF 758 MILLION HIS COMPENSATION CAN INCREASE AT THE RATE OF THE STOCK'S PRICE INCREASE UP TO 25 ANNUALLY YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING BROOKE GROUP GAINED 25 CENTS OR MORE THAN 14 TO 2 THE SETTLEMENT REQUIRES THAT OUTSIDE DIRECTORS APPROVE ANY TRANSACTION OF MORE THAN 100000 BETWEEN BROOKE GROUP AND MR LEBOW OR ANY ASSOCIATED GROUP THE COMPANY HAS THREE DIRECTORS INCLUDING MR LEBOW IN A STATEMENT MR LEBOW SAID THE SETTLEMENT IS IN THE BEST INTERESTS OF THE COMPANY BECAUSE IT ELIMINATES THE DISTRACTION AND EXPENSE WHICH LITIGATION BRINGS A COMPANY SPOKESMAN SAID MR LEBOW WAS UNAVAILABLE FOR AN INTERVIEW THE SETTLEMENT REQUIRES COURT APPROVAL THE PROPOSED SETTLEMENT CALLS FOR PAYMENT OF AS MUCH AS 900000 TO ATTORNEYS FOR THE PLAINTIFFS BROOKE GROUP ALSO CONTROLS NEW VALLEY CORP THE PARENT OF WESTERN UNION FINANCIAL SERVICES INC WHICH IS SEEKING TO REORGANIZE UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE AND IT IS AN INVESTOR IN A RUSSIAN REAL ESTATE VENTURE 9403180150 940318 DUPONT OPENS OFFICE IN VIETNAM HANOI VIETNAM DUPONT CO OPENED A REPRESENTATIVE OFFICE IN HO CHI MINH CITY IN ANTICIPATION OF NEW BUSINESS OPPORTUNITIES IN VIETNAM DUPONT IS AMONG THE BIGGEST US FIRMS TO INVEST IN VIETNAM SINCE THE US TRADE EMBARGO WAS LIFTED FEB 3 DUPONT SAID IN A STATEMENT THAT IT ANTICIPATES A PROMISING OUTLOOK FOR THE AGRICULTURAL CONSTRUCTION AND TEXTILE INDUSTRIES IN VIETNAM AND INTENDS TO FULLY PARTICIPATE IN THESE SECTORS DAVID PANG VICE PRESIDENT FOR DUPONT ASIA PACIFIC INDICATED THAT THE COMPANY HOPES TO QUADRUPLE ITS SALES IN THE ASIAPACIFIC REGION TO 10 BILLION BY THE YEAR 2000 OR ABOUT 20 OF DUPONT'S TOTAL GLOBAL SALES 9403180149 940318 CANADA TO SELL BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY 190 BILLION CANADIAN DOLLARS US139 BILLION OF 65 BONDS DUE JUNE 1 2004 THE PROCEEDS WILL BE USED TO REDEEM C103 BILLION OF MATURING GOVERNMENT BONDS AND FOR GENERAL GOVERNMENT PURPOSES 9403180148 940318 BIG BOARD SEAT SELLS FOR 830000 NEW YORK THE NEW YORK STOCK EXCHANGE SAID A SEAT ON THE EXCHANGE SOLD FOR 830000 UP 80000 FROM THE LAST SALE ON DEC THE CURRENT BID FOR A BIG BOARD SEAT IS 760000 AND 1 MILLION OFFERED 9403180147 940318 WHO'S NEWS WESTINGHOUSE PAID JORDAN AND OTHERS HANDSOMELY IN '93 AS LAYOFFS PROCEEDED BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP'S NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL JORDAN EARNED 904000 FOR SIX MONTHS OF WORK IN 1993 AND WAS GRANTED OPTIONS TO BUY ONE MILLION SHARES THE COMPANY'S LATEST PROXY STATEMENT ALSO DISCLOSES THAT ROBERT A WATSON HIRED TO LIQUIDATE WESTINGHOUSE'S LOSSRIDDEN FINANCIALSERVICES ARM EARNED 145 MILLION FOR HIS 18 MONTHS OF SERVICE THIS NEWSPAPER PREVIOUSLY REPORTED THAT HE HAD RECEIVED AT LEAST 10 MILLION HE COLLECTED THAT AMOUNT IN 1993 BUT HE ALSO TOOK IN 46 MILLION THE PREVIOUS YEAR WESTINGHOUSE IS ONE OF THE FEW COMPANIES THAT CAN LIST THREE CEOS IN ITS COMPENSATION TABLE FOR THE SAME YEAR PAUL E LEGO WHO STEPPED DOWN AS CHAIRMAN AND CEO UNDER PRESSURE IN JANUARY 1993 AFTER THREE YEARS IN THE POSTS COLLECTED A TOTAL OF ABOUT 1870000 INCLUDING A A SPECIAL SEPARATION AGREEMENT OF 800000 CONSULTING FEES OF 600000 AND A PERFORMANCE INCENTIVE OF 418000 AS WELL AS A SALARY OF 58333 FOR ONE MONTH ON THE JOB THE PREVIOUS YEAR HE EARNED 725000 MR LEGO 63 YEARS OLD ALSO WILL RECEIVE 600000 IN 1994 HIS ANNUAL PENSION BENEFIT WILL BE ABOUT 910000 A YEAR AFTER HE TURNS 65 MEANWHILE GARY M CLARK THE COMPANY PRESIDENT WHO SERVED AS ACTING CEO FOR SIX MONTHS COLLECTED 103 MILLION IN 1993 WESTINGHOUSE SAID MR JORDAN'S COMPENSATION PACKAGE WAS STRUCTURED TO MOTIVATE HIM TO TAKE ACTIONS NECESSARY AND TO REWARD HIM FOR INCREASED VALUE TO SHAREHOLDERS MR JORDAN 57 IS RECEIVING A BASE SALARY OF 1 MILLION AND A MINIMUM 1994 ANNUAL INCENTIVE OF 300000 IN 1993 HE COLLECTED SALARY OF 503799 AND A SIGNING BONUS OF 400000 IN LIEU OF ANY ANNUAL INCENTIVE FOR 1993 HIS ONE MILLION SHARES OF LONGTERM STOCK OPTIONS 750000 OF WHICH ARE EXERCISABLE AT 1544 A SHARE AND 250000 AT 26 ARE SUBJECT TO SHAREHOLDER APPROVAL OF THE COMPANY'S LONGTERM INCENTIVE PLAN FOR MANAGEMENT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WESTINGHOUSE SHARES CLOSED AT 13375 UP 125 CENTS THE HIGH SALARIES STAND IN MARKED CONTRAST TO THE THOUSANDS OF LAYOFFS THROUGHOUT THE COMPANY IN THE PAST FEW YEARS IN JANUARY THE COMPANY ANNOUNCED SOME 6000 MORE JOB CUTS FOR THE NEXT TWO YEARS ABOUT 11 OF ITS WORK FORCE AND TOOK A FOURTHQUARTER CHARGE OF 906 MILLION THE COMPANY ALREADY CUT 20 TO 25 OF ITS WORK FORCE FROM 1988 THROUGH 1993 AND CURRENTLY HAS 85000 EMPLOYEES FOR 1993 WESTINGHOUSE REPORTED A NET LOSS OF 326 MILLION OR 107 A SHARE WHICH FOLLOWED ON THE HEELS OF A LOSS OF 139 BILLION OR 411 A SHARE THE PREVIOUS YEAR THE COMPANY'S PROBLEMS ARE ROOTED IN ITS DISASTROUS FORAY INTO FINANCIAL SERVICES AS WELL AS SLUGGISH GROWTH IN ITS TRADITIONAL POWERGENERATION AND DEFENSEELECTRONICS BUSINESS 9403180146 940318 USF&G INSURANCE UNIT'S LOSSES BALTIMORE USF&G CORP SAID ITS USF&G INSURANCE UNIT ESTIMATED LOSSES RELATED TO WINTER STORMS AND THE CALIFORNIA EARTHQUAKE AT ABOUT 35 MILLION ON ABOUT 11400 CLAIMS THE INSURANCE CONCERN SAID FIRSTQUARTER RESULTS WOULD REFLECT THE LOSSES IN THE 1993 FIRST QUARTER THE COMPANY SAID IT HAD ABOUT 30 MILLION IN LOSSES FROM WINTER STORMS IN THAT PERIOD THE COMPANY HAD NET INCOME OF 61 MILLION OR 58 CENTS A SHARE ON REVENUE OF 875 MILLION 9403180145 940318 CATERPILLAR BOOSTS ITS HIRING PLANS BY 200 WORKERS BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CATERPILLAR INC CITING HIGHERTHANEXPECTED DEMAND FOR ITS CONSTRUCTION EQUIPMENT SAID IT WILL HIRE 200 WORKERS MORE THAN PREVIOUSLY PLANNED AT ITS ILLINOIS PLANTS THAT MARKS THE THIRD TIME SINCE NOVEMBER THAT CATERPILLAR HAS INCREASED ITS HIRING PLANS FOR FACTORY WORKERS TOGETHER THAT MEANS THE PEORIA ILL COMPANY PLANS TO HIRE SOME 1000 FACTORY WORKERS BETWEEN LAST NOVEMBER AND THE END OF MAY CATERPILLAR'S LATEST ANNOUNCEMENT INDICATES THAT THE RECENT INCREASE IN INTEREST RATES HASN'T HURT DEMAND FOR BIG MACHINES INDEED OTHER MIDWESTERN MANUFACTURERS ALSO REPORT THAT BUSINESS IS STRONG THOUGH SOME AREN'T READY TO RESUME HIRING THE GENERAL BUSINESS PSYCHOLOGY IS PRETTY GOOD SAID JAMES COTTING CHAIRMAN OF NAVISTAR INTERNATIONAL CORP IN CHICAGO NAVISTAR SAID ITS SALES OF HEAVYDUTY TRUCKS REMAIN STRONG AND THAT ORDERS FOR MEDIUMDUTY TRUCKS WHICH HAVE BEEN LAGGING BEHIND OTHER MODELS WERE OUTSTANDING IN FEBRUARY NAVISTAR BACK TO PROFITABILITY AFTER YEARS OF TROUBLE RECENTLY RECALLED 130 WORKERS AT ITS DIESEL ENGINE PLANT IN INDIANAPOLIS A SPOKESMAN FOR JOHNSON CONTROLS INC MILWAUKEE MEANWHILE SAID HIS COMPANY IS STARTING TO WORRY ABOUT A SHORTAGE OF SKILLED WORKERS FOR ITS FACTORIES ALTHOUGH SOME OF CATERPILLAR'S HIRING IS DUE TO RETIREMENTS IN ITS AGING WORK FORCE A CATERPILLAR SPOKESMAN SAID MOST OF IT IS DUE TO HIGHERTHANEXPECTED DEMAND IN THIS YEAR'S FIRST QUARTER THE COMPANY SAID SALES FOR THE FULL YEAR SHOULD ALSO BE HIGHER THAN IT EXPECTED EARLIER THIS YEAR CATERPILLAR'S HIRING WILL BE A COMBINATION OF RECALLS OF LAIDOFF WORKERS AND NEW HIRES SOME 125 OF THE 200 WILL BE AT A PLANT IN DECATUR ILL WHICH MAKES MINING EQUIPMENT AND MOTOR GRADERS BUT THE NEWS ISN'T ALL GOOD CATERPILLAR WHICH ENDED 1993 WITH WORLDWIDE EMPLOYMENT AT 51250 STILL HAS A FREEZE ON HIRING WHITECOLLAR WORKERS AND WITH A CONTINUED STANDOFF AND LACK OF A CONTRACT WITH THE UNITED AUTO WORKERS UNION IT SAID LABOR CONDITIONS REMAIN AN UNCERTAINTY ALTHOUGH MOST OF THE HIRES WILL BE UAW MEMBERS THEY'LL BE WORKING UNDER A CONTRACT IMPOSED BY THE COMPANY AFTER THE UNION'S FAILED STRIKE OF 1992 A SPOKESMAN SAID A SMALL NUMBER WILL BE HIRED AT THE CAT PLANT IN JOLIET ILL WHOSE WORKERS ARE REPRESENTED BY THE INTERNATIONAL ASSOCIATION OF MACHINISTS 9403180144 940318 WHO'S NEWS HARSCO CORP HARSCO CORP HARRISBURG PA AS EXPECTED DEREK C HATHAWAY 49 YEARS OLD THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN EFFECTIVE APRIL 1 HE WILL SUCCEED MALCOLM W GAMBILL 63 WHO IS RETIRING AS CHAIRMAN AND AS A DIRECTOR THE COMPANY HASN'T YET NAMED ANYONE TO SUCCEED MR GAMBILL AS A DIRECTOR MR HATHAWAY ALREADY SERVES ON THE BOARD OF THIS DIVERSIFIED INDUSTRIAL MANUFACTURING AND SERVICES COMPANY WITH THREE MAIN OPERATING GROUPS INDUSTRIAL SERVICES AND BUILDING PRODUCTS ENGINEERED PRODUCTS AND DEFENSE INDUSTRY PRODUCTS 9403180143 940318 ALCO STANDARD ACQUISITIONS VALLEY FORGE PA ALCO STANDARD CORP ACQUIRED ALEXANDER'S OFFICE SYSTEMS INC OF CHARLOTTE NC AND OFFICE AUTOMATION INC OF WICHITA KAN BOTH COPIER AND OFFICE SUPPLY DEALERS TERMS WERE NOT DISCLOSED ALCO STANDARD SAID ALEXANDER'S IS A DISTRIBUTOR OF CANON COPIERS AND FACSIMILE MACHINES AND WILL BECOME A BRANCH OF ALCO STANDARD'S MODERN OFFICE MACHINES INC UNIT ALCO STANDARD SAID OFFICE AUTOMATION IS A DISTRIBUTOR OF RICOH AND AB DICK PRODUCTS AND WILL BECOME A CORE OPERATING COMPANY IN ALCO STANDARD'S ALCO OFFICE PRODUCTS UNIT 9403180142 940318 WHAT'S NEWS WORLDWIDE SERBS AND MUSLIMS SIGNED AN ACCORD TO EASE SARAJEVO'S 23MONTH SIEGE THE UNBROKERED AGREEMENT WOULD ALLOW CIVILIANS TO TRAVEL ALONG CERTAIN ROADS IN AND AROUND THE CITY AND COULD OPEN A ROUTE OUT OF SARAJEVO FOR PEOPLE WHO HAVE BEEN TRAPPED THERE FOR TWO YEARS HOWEVER COMMERCIAL TRAFFIC WOULDN'T BE PERMITTED AND PEOPLE WISHING TO TRAVEL FROM ONE SIDE'S TERRITORY TO THE OTHER'S WOULD HAVE TO RECEIVE PERMISSION FROM SERB OR MUSLIM AUTHORITIES THE ACCORD IS THE LATEST STEP IN MOVES TO NORMALIZE LIFE IN THE BOSNIAN CAPITAL WHERE A CEASEFIRE HAS BEEN GENERALLY HOLDING FOR FIVE WEEKS THE SENATE BUDGET COMMITTEE VOTED TO REQUIRE ANOTHER 26 BILLION IN SPENDING CUTS FROM CLINTON'S FIVEYEAR BUDGET PLAN THE ADDITIONAL CUTS ADOPTED ON A BIPARTISAN 138 VOTE WOULD PLACE SEVERE PRESSURE ON CLINTON'S INVESTMENT SPENDING INITIATIVES REPUBLICANS WON A SENATE COMMITMENT TO HOLD HEARINGS ON THE WHITEWATER AFFAIR HOWEVER THE RESOLUTION PASSED LAST NIGHT STATES THAT THE TIMING AND THE FORMAT OF THE HEARINGS WON'T INTERFERE WITH THE INVESTIGATION BEING CONDUCTED BY SPECIAL COUNSEL FISKE SO HEARINGS MAY NOT OCCUR FOR SOME TIME NUSSBAUM APPEARED BEFORE A WHITEWATER GRAND JURY THE DEPARTING WHITE HOUSE COUNSEL WHO WAS FORCED TO RESIGN OVER WHITEWATER SAID HE ANSWERED EVERY QUESTION WHITE HOUSE AIDE ICKES ALSO TESTIFIED LATER SPECIAL COUNSEL FISKE SUBPOENAED SENIOR WHITE HOUSE ADVISER STEPHANOPOULOS TO APPEAR BEFORE THE GRAND JURY TWO ISRAELI SOLDIERS TESTIFIED THAT THEY FIRED DIRECTLY AT A MOSQUE'S DOORWAY AND NOT JUST INTO THE AIR DURING THE PANDEMONIUM OF LAST MONTH'S HEBRON MASSACRE THE SOLDIERS APPEARING BEFORE AN ISRAELI PANEL INVESTIGATING THE SLAYINGS ALSO RAISED THE POSSIBILITY THAT THE JEWISH SETTLER BLAMED FOR THE ATTACK HAD AN ACCOMPLICE ISRAELI FORCES KILLED TWO PALESTINIANS IN A GUNFIGHT IN THE GAZA STRIP AND 14 OTHER ARABS WERE WOUNDED IN CLASHES WITH TROOPS THROUGHOUT THE OCCUPIED LANDS WITH TENSIONS HIGH ISLAMIC OFFICIALS CLOSED MUSLIM MONUMENTS IN JERUSALEM TO TOURISTS OCCIDENTAL CHEMICAL WON'T HAVE TO PAY PUNITIVE DAMAGES IN THE DUMPING OF TOXIC WASTE AT THE LOVE CANAL SUBDIVISION IN NIAGARA FALLS NY A JUDGE RULED NEW YORK STATE SOUGHT AS MUCH AS 250 MILLION FROM OCCIDENTAL FEDERAL PROSECUTORS PLAN TO MEET NEXT WEEK WITH LAWYERS FOR REP ROSTENKOWSKI TO REVIEW ALLEGATIONS THAT COULD LEAD TO THE ILLINOIS DEMOCRAT'S INDICTMENT ON CORRUPTION CHARGES ANTICRIME LEGISLATION WAS APPROVED BY THE HOUSE JUDICIARY COMMITTEE THAT WOULD PROVIDE LIFE SENTENCES FOR PEOPLE CONVICTED OF THREE SERIOUS CRIMES UNLIKE THREESTRIKES MEASURES IN A BILL PASSED IN THE SENATE THE HOUSE PANEL'S VERSION WOULD ALLOW AN EARLY RELEASE FROM PRISON OF SOME AGED INMATES MICHIGAN'S SCHOOLFUNDING VOTE MAKES OTHER STATES MORE LIKELY TO WEIGH SIMILAR PROPOSALS THAT CALL FOR HIGHER SALES TAXES TO FINANCE PUBLIC SCHOOLS AND A LOWERING OF PROPERTY TAXES INTERIOR SECRETARY BABBITT UNVEILED A SCALEDBACK VERSION OF A GRAZING PROPOSAL THAT HE HAS BEEN TRYING TO IMPLEMENT THE NEW VERSION WOULD SHIFT DECISIONMAKING ON FEDERAL LAND USE TOWARD THE LOCAL LEVEL THE SEC IS INVESTIGATING SEVERAL ARKANSAS INVESTORS INCLUDING A GROUP ONCE HEADED BY WHITE HOUSE AIDE PATSY THOMASSON IN CONNECTION WITH POSSIBLE INSIDER TRADING THE INQUIRY IS SAID TO INVOLVE TRADING IN ARCTIC ALASKA FISHERIES STOCK IN 1992 BEFORE TYSON FOODS ANNOUNCED AN ACQUISITON OF THE FIRM A LANDMARK TRIAL OPENED IN VERSAILLES FOR NAZI COLLABORATOR PAUL TOUVIER THE FIRST FRENCHMAN TO BE TRIED FOR CRIMES AGAINST HUMANITY TOUVIER 78 WHO WAS INTELLIGENCE CHIEF FOR THE FRENCH MILITIA IN OCCUPIED LYON IS CHARGED WITH COMPLICITY IN THE KILLINGS OF SEVEN JEWS IN JUNE 1944 MANDELA CALLED OFF A VISIT TO THE CAPITAL OF SOUTH AFRICA'S ZULU REGION BECAUSE AIDES FEARED THERE WOULD BE AN ASSASSINATION ATTEMPT ON THE AFRICAN NATIONAL CONGRESS PRESIDENT MEANWHILE ZULU LEADER BUTHELEZI WARNED OF A FIERCE BATTLE IF HIS PARTY IS FORCED TO TAKE PART IN ALLRACE ELECTIONS 9403180141 940318 CREDIT RATINGS OCCIDENTAL PETROLEUM CORP LOS ANGELES MOODY'S INVESTORS SERVICES INC DOWNGRADED ITS RATINGS OF THE LONGTERM DEBT PREFERRED STOCK AND COMMERCIAL PAPER OF THIS NATURAL RESOURCES CHEMICALS AND FOOD PROCESSING COMPANY ABOUT 5 BILLION OF DEBT IS AFFECTED CITING DEPRESSED OIL PRICES SLUMPING CHEMICAL MARKETS AND OCCIDENTAL'S WEAK CASHFLOW PROTECTION MEASURES MOODY'S DOWNGRADED LONGTERM DEBT TO BAA3 FROM BAA2 THE RATING ON PREFERRED STOCK WAS DOWNGRADED TO BA1 FROM BAA3 AND COMMERCIAL PAPER WAS LOWERING TO PRIME3 FROM PRIME2 THE COMPANY SAID IT HAD TO COMMENT ON THE MOVE 9403180140 940318 CONSUMER PRICE INDEX IN CANADA FALLS AGAIN OTTAWA CANADA'S CONSUMER PRICE INDEX DECLINED IN FEBRUARY FOR THE SECOND CONSECUTIVE MONTH DROPPING 09 FROM JANUARY STATISTICS CANADA A GOVERNMENT AGENCY SAID THE DECLINE IN THE SEASONALLY ADJUSTED INDEX RESULTED MAINLY FROM A 383 DROP IN CIGARETTE PRICES IN FEBRUARY AS A RESULT OF REDUCTIONS IN CIGARETTE TAXES THE FEDERAL GOVERNMENT AND THE PROVINCIAL GOVERNMENTS OF ONTARIO QUEBEC AND NEW BRUNSWICK CUT THEIR CIGARETTE TAXES TO DISCOURAGE CIGARETTE SMUGGLING THE FEBRUARY DECLINE IN THE CONSUMER PRICE INDEX FOLLOWED A 02 DROP IN JANUARY IN DECEMBER THE INDEX ROSE 02 SEPARATELY THE CANADIAN GOVERNMENT'S LABOR BUREAU REPORTED THAT COLLECTIVE BARGAINING SETTLEMENTS REACHED IN JANUARY PROVIDED WAGE INCREASES AVERAGING 06 ANNUALLY THE JANUARY INCREASE IS IN KEEPING WITH THE PATTERN OF HISTORICALLY LOW WAGESETTLEMENTS RECORDED IN RECENT MONTHS THE BUREAU SAID 9403180139 940318 WHO'S NEWS INFORMATION RESOURCES PRESIDENT IS ANDRESS CHICAGO INFORMATION RESOURCES INC NAMED JAMES G ANDRESS PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDING MAGID ABRAHAM WHO ASKED TO BE RELIEVED OF THOSE EXECUTIVE DUTIES BECAUSE OF A HEALTH PROBLEM THE COMPANY WOULDN'T COMMENT ON THE NATURE OF MR ABRAHAM'S ILLNESS OTHER THAN TO SAY THAT IT ISN'T LIFE THREATENING IT SAID MR ABRAHAM 35 YEARS OLD WILL CONTINUE AS THE COMPANY'S LEADING TECHNOLOGIST WILL REMAIN ON THE INFORMATION AND SOFTWARESERVICES CONCERN'S BOARD AND WILL WORK ON SOFTWAREAPPLICATIONS DEVELOPMENT AND OTHER NEW TECHNOLOGY ISSUES MR ANDRESS 55 HAS BEEN VICE CHAIRMAN AND COCHIEF EXECUTIVE OFFICER HE WILL CONTINUE TO SHARE CEO RESPONSIBILITIES WITH GIAN FULGONI CHAIRMAN INFORMATION RESOURCES ALSO NAMED TWO DIRECTORS THOMAS WALKER 46 PRESIDENT OF ITS FINANCE AND ADMINISTRATION DIVISION AND JEFFREY STAMEN 48 PRESIDENT OF THE IRI SOFTWARE DIVISION THE MOVES INCREASE THE BOARD TO 14 MR WALKER ALSO WAS PROMOTED TO CORPORATE EXECUTIVE VICE PRESIDENT 9403180138 940318 ENTERPRISE FRAUD CONCERNS GROW AT SBA'S DISASTERLOAN PROGRAM RISE IN SUSPICIOUS APPLICATIONS SPURS US PROBE CRIMINAL COMPLAINT BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES CONCERNS ABOUT FRAUD ARE SURFACING IN ANOTHER MAJOR SMALL BUSINESS ADMINISTRATION LOAN PROGRAM FEDERAL CRIMINAL INVESTIGATORS HAVE BEGUN SIFTING THROUGH SEVERAL DOZEN SUSPICIOUS DISASTERLOAN APPLICATIONS ARISING OUT OF A STRING OF DISASTERS RANGING FROM RIOTS TO EARTHQUAKES THAT HAVE HIT THE LOS ANGELES AREA ACCORDING TO PEOPLE FAMILIAR WITH THE PROBES SOME OF THE SUSPECT LOAN PACKAGES HAVE ALREADY BEEN APPROVED AND SEVERAL MILLION DOLLARS DISBURSED THESE PEOPLE SAY ONE BUSINESSMAN WAS CRIMINALLY CHARGED EARLIER THIS MONTH THOUGH THE PROBE IS FOCUSING ON THE LOS ANGELES AREA THE POTENTIAL VULNERABILITIES TO FRAUD OF THE DISASTERLOAN ARE NATIONAL SOME SBA OFFICIALS SAY THAT IS BECAUSE THE AGENCY HAS TRADITIONALLY DONE ONLY LIMITED CHECKING OF LOAN APPLICATIONS FOR INSTANCE THE AGENCY DOESN'T CROSSCHECK WITH THE INTERNAL REVENUE SERVICE CONCERNING THE ACCURACY OF THE TAX RETURNS FILED WITH A DISASTERLOAN APPLICATION ONE MAJOR AREA OF INQUIRY IN THE PRESENT INVESTIGATION IS THE POSSIBLE USE OF BOGUS TAX RETURNS SBA OFFICIALS SAY IN THAT SENSE THE DISASTERLOAN PROGRAM IS OPEN TO THE SAME KIND OF FRAUD PROBLEM THAT HAS HIT THE SBA'S HUGE SMALLBUSINESS LOAN PROGRAM IN RECENT YEARS AS PREVIOUSLY REPORTED THE BUSINESSLOAN PROGRAM WHICH DISBURSED ABOUT 64 BILLION NATIONALLY IN FISCAL 1993 HAS SEEN A WAVE OF BOGUS APPLICATIONS IN RECENT YEARS WHICH HAS PROMPTED CONTINUING CRIMINAL PROBES MANY OF THESE BUSINESSLOAN APPLICATIONS CONTAINED TAX RETURNS THAT GREATLY OVERSTATED THE APPLICANT'S INCOME ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THESE SUSPECT APPLICATIONS WERE OFTEN PREPARED BY SOCALLED PACKAGERS INDEPENDENT CONSULTANTS WHO SPECIALIZE IN PUTTING TOGETHER SBA LOAN APPLICATIONS COMPUTER SOFTWARE AIDED THE SUSPECTED FRAUD BY MAKING IT EASY TO PREPARE DIFFERENT VERSIONS OF A FIRM'S TAX RETURNS INVESTIGATORS SAY PACKAGERS ARE ALSO INVOLVED IN SOME OF THE SUSPECT DISASTERAID LOAN APPLICATIONS SBA OFFICIALS SAY THE RECENT DISASTERLOAN CRIMINAL COMPLAINT ALLEGEDLY INVOLVES BOTH A LOAN PREPARER AND FALSE TAX RETURNS THE US ATTORNEY'S OFFICE FILED A CRIMINAL COMPLAINT IN FEDERAL COURT HERE EARLIER THIS MONTH CHARGING SIAMAK KOHANOFF WITH ATTEMPTING TO DEFRAUD THE SBA OUT OF 15 MILLION ON AN APPLICATION FOR TWO DISASTER LOANS AMONG OTHER THINGS THE COMPLAINT CHARGES THAT MR KOHANOFF FILED FINANCIAL DOCUMENTS WITH THE SBA THAT SHOWED THE INCOME FROM HIS GAS STATION AND MARKET WAS 7 MILLION A YEAR WHEN IT ACTUALLY WAS LESS THAN 50000 A YEAR ACCORDING TO AN AFFIDAVIT FILED BY SBA SPECIAL AGENT TERESA L PRICE IN CONNECTION WITH THE CRIMINAL COMPLAINT THE SBA RECEIVED AN ANONYMOUS TELEPHONE TIP FROM SOMEONE WHO CLAIMED TO HAVE OVERHEARD MR KOHANOFF BRAGGING ABOUT USING FALSE TAX RETURNS TO APPLY FOR SBA DISASTER ASSISTANCE MR KOHANOFF ALSO ALLEGEDLY TOLD OF HAVING A LOANAPPLICATION PREPARER WHO FOR A FEE WOULD HELP PREPARE BOGUS DOCUMENTATION FOR OTHER BUSINESS OWNERS ACCORDING TO MS PRICE'S AFFIDAVIT BRIAN HENNIGAN MR KOHANOFF'S ATTORNEY DECLINED TO COMMENT ON THE CHARGES INVESTIGATORS SAY LOS ANGELES HAS BECOME A FOCAL POINT OF CONCERNS OVER POSSIBLE DISASTERLOAN FRAUD IN PART BECAUSE THE AREA HAS HAD SO MANY DISASTERS THE 1992 RIOTS LEFT HUNDREDS OF BUSINESSES DAMAGED OR DESTROYED MORE RECENTLY BRUSH FIRES SWEPT THROUGH LARGE PARTS OF LOS ANGELES FOLLOWED BY RAININDUCED MUDSLIDES THESE EVENTS GENERATED THOUSANDS OF APPLICATIONS FOR DISASTER RELIEF THEN IN JANUARY CAME THE LOS ANGELES EARTHQUAKE WHICH IS SHAPING UP AS THE COSTLIEST NATURAL DISASTER IN US HISTORY IN THE EIGHT WEEKS SINCE THE QUAKE SBA OFFICIALS SAY THEY HAVE RECEIVED OVER 100000 APPLICATIONS FOR DISASTER ASSISTANCESOME 20000 OF THEM FROM BUSINESSES THE AGENCY ALSO HANDLES DISASTER LOANS TO INDIVIDUALS THAT TOTAL IS OVER FIVE TIMES THE NUMBERS OF APPLICATIONS RECEIVED STEMMING FROM ANY PREVIOUS NATURAL DISASTER AND THOUSANDS OF NEW QUAKERELATED APPLICATIONS ARE POURING IN DAILY SAYS BERNARD KULIK THE SBA'S ASSISTANT ADMINISTRATOR FOR DISASTER ASSISTANCE WE ARE OVERWHELMED HE SAYS CONCERN ABOUT POTENTIAL FRAUD AFTER THE QUAKE WAS SO GREAT THAT SEVERAL GOVERNMENT AGENCIES INCLUDING THE SBA THE FEDERAL BUREAU OF INVESTIGATION AND THE US ATTORNEY'S OFFICE FORMED A FRAUD TASK FORCE MR KOHANOFF'S ALLEGED FRAUD WAS ONE OF THE TASK FORCE'S FIRST CASES HOWEVER SBA INVESTIGATORS HAVE BARELY BEGUN INVESTIGATING POSSIBLE QUAKERELATED FRAUD THEY ARE STILL GETTING LARGE NUMBERS OF SUSPECT LOAN PACKAGES OUT OF THE LOS ANGELES RIOT AGENCY INVESTIGATORS HAVE BEEN ASKED TO LOOK AT LITERALLY DOZENS OF RIOT LOANS IN WHICH THE BORROWERS HAVE DEFAULTED AND IN MANY CASES APPARENTLY DISAPPEARED WITH THE MONEY SAYS ONE PERSON FAMILIAR WITH THE MATTER STEPHEN MARICA THE SBA'S ASSISTANT INSPECTOR GENERAL FOR INVESTIGATIONS SAYS HIS OFFICE HAS 11 DIFFERENT DISASTERFRAUD INVESTIGATIONS UNDER WAY IN THE LOS ANGELES AREA INVOLVING PREQUAKE APPLICATIONS MOST OF THEM STEMMING FROM THE RIOT HE SAYS THE POTENTIAL GOVERNMENT LOSS FROM THOSE CASES ALONE IS OVER 5 MILLION AND WE ARE LOOKING AT A SIGNIFICANT NUMBER OF OTHER APPLICATIONS TO SEE IF THEY WARRANT FURTHER INVESTIGATION SAYS MR MARICA THE SBA IS TAKING STEPS TO CUT DOWN ITS RISK OF RECEIVING FALSE FINANCIAL INFORMATION ON LOAN APPLICATIONS IN THE BUSINESSLOAN PROGRAM THE AGENCY HAS BEGUN CROSSCHECKING TAX RETURNS FILED WITH SOME APPLICATIONS AGAINST THE RETURNS FILED WITH THE IRS AGENCY OFFICIALS SAY THAT SAFEGUARD COULD EVENTUALLY BE APPLIED TO ALL BUSINESSLOAN APPLICATIONS IN THE DISASTER LOAN PROGRAM THE SBA IS GIVING EARTHQUAKE VICTIMS THE OPTION OF ALLOWING THE AGENCY TO OBTAIN COPIES OF TAX RETURNS DIRECTLY FROM THE IRS SO FAR MORE THAN 90 OF APPLICANTS ARE TAKING THAT OPTION THOUGH THAT STILL LEAVES THOUSANDS OF INDIVIDUALS SENDING IN THEIR OWN RETURNS SOME OF WHICH COULD BE FRAUDULENT IF THE PROCESS OF GETTING RETURNS DIRECTLY FROM THE IRS WORKS WELL THE SBA WILL CONSIDER MAKING THAT THE STANDARD METHOD OF OBTAINING TAX INFORMATION IN FUTURE DISASTERS SAYS THE AGENCY'S MR KULIK 9403180137 940318 MONEYMARKET ASSETS ROSE BY 441 BILLION IN MOST RECENT WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS ROSE 441 BILLION TO 59819 BILLION FROM A REVISED 59378 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 658 RETAIL MONEYMARKET MUTUAL FUNDS ROSE BY 184 BILLION TO 41322 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 408 TAXABLE MONEYMARKET FUNDS ROSE 142 BILLION TO 31913 BILLION ASSETS OF 250 RETAIL TAXEXEMPT FUNDS INCREASED BY 4211 MILLION TO 9409 BILLION ASSETS OF THE 284 INSTITUTIONAL MONEYMARKET FUNDS ROSE 257 BILLION TO 18497 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 230 TAXABLE MONEYMARKET FUNDS ROSE BY 265 BILLION TO 16106 BILLION ASSETS OF 54 TAXEXEMPT FUNDS DECREASED BY 718 MILLION TO 2391 BILLION 9403180136 940318 ABER COMMONWEALTH PLAN TO BUY DENTONIA AFTER PROPOSED MERGER VANCOUVER BRITISH COLUMBIA ABER RESOURCES LTD AND COMMONWEALTH GOLD CORP SAID THAT AFTER THEY COMPLETE A PROPOSED MERGER THEY WILL OFFER TO ACQUIRE ALL THE SHARES OF DENTONIA RESOURCES LTD THE THREE VANCOUVER MINING COMPANIES ALL HOLD STAKES IN A NORTHERN CANADIAN DIAMOND PROSPECT THAT IS THE SECOND IN CANADA TO UNDERGO BULK TESTING TO DETERMINE THE POTENTIAL FOR A MINE BULK TESTING IS A RELATIVELY COSTLY SECONDARY TESTING STAGE THAT FOLLOWS SMALLSCALE INITIAL TESTS ABER AND COMMONWEALTH SAID THE ACQUISITION OF DENTONIA WOULD CONSOLIDATE A 267 INTEREST THAT THE COMPANIES HOLD IN THE TLI KWI CHO DIAMOND DISCOVERY IN CANADA'S NORTHWEST TERRITORIES THE DISCOVERY IS BEING EVALUATED BY RTZ CORP'S KENNECOTT CANADA INC UNIT THE COMBINED COMPANIES WOULD ALSO HOLD INTERESTS IN 223 MILLION ACRES OF DIAMOND CLAIMS NEAR THE DISCOVERY ABER AND COMMONWEALTH SAID DENTONIA SHAREHOLDERS WILL BE OFFERED TWO SHARES OF THE AMALGAMATED COMPANY FOR EACH DENTONIA COMMON SHARE AND THAT THE OFFER WILL BE SUBJECT TO REGULATORY APPROVALS AND TO AT LEAST 51 OF DENTONIA'S OUTSTANDING SHARES ON A FULLY DILUTED BASIS BEING TENDERED THEY SAID DETAILS OF THE OFFER WILL BE MAILED TO DENTONIA'S SHAREHOLDERS AS SOON AS POSSIBLE AFTER COMPLETION OF THE AMALGAMATION WHICH THEY EXPECT TO TAKE PLACE ON OR ABOUT APRIL 11 DESPITE THE DIAMOND INTERESTS IT SHARES WITH ITS WOULDBE ACQUISITORS DENTONIA REACTED COOLLY TO THE TAKEOVER PROPOSAL THE COMPANY SAID THAT ALTHOUGH IT HASN'T SEEN A FORMAL PROPOSAL THE TERMS OF THE PROPOSED OFFER APPEAR SOMEWHAT INADEQUATE ABER AND COMMONWEALTH PREVIOUSLY SAID THEY WILL SEEK SHAREHOLDER APPROVAL FOR A MERGER AT MEETINGS TO BE HELD MARCH 31 THEY SAID THE NEW COMPANY WOULD USE THE ABER NAME AND WOULD BE LISTED ON THE NASDAQ STOCK MARKET AND THE TORONTO STOCK EXCHANGE IN OVERTHECOUNTER TRADING YESTERDAY ABER CLOSED AT 353 UP 219 CENTS OR 66 9403180135 940318 SHAREHOLDERS APPROVE REVAMPING OF CSA GOLDCORP DICKENSON TORONTO SHAREHOLDERS OF GOLDCORP INC DICKENSON MINES LTD AND CSA MANAGEMENT LTD APPROVED A REORGANIZATION OF THE THREE COMPANIES INCLUDING THE MERGER OF MOST OF THEIR ASSETS CSA A HOLDING COMPANY CONTROLLED BY CANADIAN MINING EXECUTIVE ROBERT MCEWEN CURRENTLY CONTROLS GOLDCORP WHICH CONTROLS DICKENSON A TORONTO GOLD PRODUCER MR MCEWEN SAID THE REORGANIZATION IS AIMED AT SIMPLIFYING THE STRUCTURE OF THE COMPANIES IMPROVING THE VALUATION OF THEIR ASSETS IMPROVING SHAREHOLDER LIQUIDITY AND MAKING FINANCING EASIER THE MERGED ASSETS WILL BE HELD BY GOLDCORP WHICH WILL CONTINUE TO TRADE ON THE TORONTO STOCK EXCHANGE AND WILL SEEK A LISTING ON THE AMERICAN STOCK EXCHANGE MR MCEWEN WILL CONTINUE TO CONTROL CSA WHICH WILL OWN 18 OF THE EQUITY OF GOLDCORP DICKENSON WILL NO LONGER EXIST THE REORGANIZATION IS SUBJECT TO REGULATORY CLEARANCE 9403180134 940318 MARKETING & MEDIA NO AD CONTRACTS WILL FORCE WHITTLE TO SHUT BOOK UNIT BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL WHITTLE COMMUNICATIONS LP THE PIONEER OF ADVERTISERSPONSORED BOOKS SAID IT EXPECTS TO CLOSE ITS WHITTLE BOOKS UNIT DUE TO LACK OF ADVERTISERSUPPORT FOR ITS NEXT LINEUP THE UNIT IS EXPECTED TO SHUT DOWN AFTER ITS LAST THREE BOOKS ARE PUBLISHED IN MAY WILLIAM S RUKEYSER CHAIRMAN AND CHIEF EXECUTIVE OF WHITTLE BOOKS SAID IN AN INTERVIEW THAT THE UNIT WOULD FOLD BECAUSE IT LACKED SIGNED ADVERTISING CONTRACTS FOR THE COMPANY'S YEAR BEGINNING IN JULY THERE IS NO ASSURANCE THAT NEW CONTRACTS WILL COME IN SO WE HAVE TO DO THIS MR RUKEYSER SAID A VETERAN EDITOR AT TIME INC BEFORE JOINING WHITTLE IN 1988 MR RUKEYSER SAID HE WOULD PROBABLY LEAVE THE COMPANY IN THE COMING MONTHS FOR EXECUTIVES PHYSICIANS CURRENTLY WHITTLE PUBLISHES CHIEF EXECUTIVE PRESS A SERIES OF BOOKS FOR TOP EXECUTIVES THAT CARRIES ADS FOR CESSNA AIRCRAFT CO ANOTHER SERIES GRAND ROUNDS PRESS CONSISTS OF BOOKS FOR PHYSICIANS SPONSORED BY VARIOUS PHARMACEUTICAL COMPANIES EACH BOOK TYPICALLY CONTAINED 18 PAGES OF ADS THE BOOKS CREATED CONTROVERSY WHEN INTRODUCED IN 1989 BY WHITTLE A KNOXVILLE TENN MEDIA COMPANY ALARMED THAT THE PRACTICE OF ADSTUFFED BOOKS WOULD BECOME WIDESPREAD PUBLISHING PURISTS SCORNED WHITTLE'S BOOKS WHICH WERE SENT FREE TO A TARGETED READERSHIP THIS IS THE SECOND RECENT SHUTTERING OF A WHITTLE PROPERTY THIS MONTH THE COMPANY CLOSED ITS SPECIAL REPORT NETWORK AN UNPROFITABLE UNIT THAT PUT TELEVISION PROGRAMMING IN PHYSICIANS' WAITING ROOMS WHILE WHITTLE'S BOOKS WERE DERIDED BY SOME IN THE PUBLISHING WORLD THEIR SUBJECTS WERE WEIGHTY AND THEIR AUTHORS CONSIDERED FIRSTRATE SOME OF THE TITLES OF THE 34 BOOKS PUBLISHED INCLUDED A SHORT HISTORY OF FINANCIAL EUPHORIA BY JOHN KENNETH GALBRAITH AND NUCLEAR RENEWAL BY RICHARD RHODES SOME EVEN TURNED INTO BESTSELLERS PENGUIN USA A UNIT OF BRITISH PUBLISHER PEARSON PLC IS IN THE MIDST OF A DEAL TO PUBLISH FOR BOOKSTORES THOUGH WITHOUT ADS WORK ISSUED BY WHITTLE AL SILVERMAN PUBLISHER AND EDITOR IN CHIEF OF VIKING PRESS THE HARDCOVER PUBLISHER OF PENGUIN RECENTLY PUBLISHED THE LOGIC OF HEALTH CARE REFORM BY PULITZER PRIZE WINNER PAUL STARR WHICH FIRST APPEARED AS A WHITTLE BOOK IN LATE 1992 A LOT OF PEOPLE FELT WHITTLE BOOKS WERE A SORT OF DISTORTION OF BOOK PUBLISHING IN GENERAL SAID MR SILVERMAN HE ADDED HOWEVER THAT THE BOOKS ALWAYS USED TOP AUTHORS AND WERE WELLEDITED BY MR RUKEYSER'S STAFF 9403180133 940318 THE BUSINESS OF LAW JUDGE WON'T REQUIRE OCCIDENTAL TO PAY PUNITIVE DAMAGES IN LOVE CANAL CASE BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE RULED THAT OCCIDENTAL CHEMICAL CORP WON'T HAVE TO PAY PUNITIVE DAMAGES OVER TOXIC WASTE DUMPED AT LOVE CANAL THE NIAGARA FALLS NY SUBDIVISION THAT BECAME A SYMBOL OF THE DIRE EFFECTS OF INDUSTRIAL POLLUTION THE PUNITIVEDAMAGES PART OF THE 14YEAROLD CASE HAD BEEN CLOSELY WATCHED BY MANY COMPANIES WHICH FEARED THAT A FINDING OF LIABILITY COULD EXPOSE THEM TO SIMILAR DAMAGES FOR ENVIRONMENTAL HARM CAUSED DECADES AGO NEW YORK STATE HAD SOUGHT PUNITIVE PENALTIES OF AS MUCH AS 250 MILLION FROM OCCIDENTAL WHICH HAD ACQUIRED HOOKER CHEMICALS & PLASTICS CORP HOOKER DUMPED 21000 TONS OF HAZARDOUS WASTE AT LOVE CANAL IN THE 1940S AND 1950S OCCIDENTAL A UNIT OF LOS ANGELESBASED OCCIDENTAL PETROLEUM CORP ALREADY HAS BEEN HELD LIABLE FOR CLEANUP COSTS WHICH ARE ESTIMATED TO BE 325 MILLION BUT IN A 180PAGE OPINION JUDGE JOHN T CURTIN OF US DISTRICT COURT IN BUFFALO RULED THAT PUNITIVE DAMAGES DESIGNED TO PUNISH WRONGDOERS FOR EGREGIOUS BEHAVIOR DIDN'T APPLY BECAUSE NEW YORK FAILED TO PROVE THAT HOOKER'S CONDUCT WAS WILLFUL WANTON AND IN RECKLESS DISREGARD FOR THE SAFETY OF OTHERS THAT FINDING AND SEVERAL OTHERS INCLUDING PROOF THAT HOOKER KNEW THE DUMPING WAS RECKLESS AND COULD FORESEE ITS DANGEROUS CONSEQUENCES ARE REQUIRED BEFORE PUNITIVE DAMAGES CAN BE AWARDED IN NEW YORK OCCIDENTAL PRAISED THE RULING SAYING IT VINDICATES HOOKER'S MANAGEMENT AND EMPLOYEES AND DEBUNKS THE MYTHS AND INTENTIONED EXAGGERATIONS THAT GREW OUT OF LOVE CANAL JUDGE CURTIN HOWEVER STOPPED FAR SHORT OF THAT ASSESSMENT EMPHASIZING THAT HIS VERDICT DOES NOT SIGNIFY APPROVAL OF HOOKER'S CONDUCT HOOKER WAS NEGLIGENT UPON A NUMBER OF OCCASIONS HE WROTE BUT A FINDING OF OUTRAGEOUS CONDUCT AND RECKLESS OR WANTON DISREGARD FOR THE SAFETY OF OTHERS REQUIRES MORE THE RULING HAS BROAD RAMIFICATIONS FOR COMPANIES ACCUSED OF UNSAFE DUMPING OF TOXIC WASTE YEARS AGO SAID THOMAS H TRUITT OCCIDENTAL'S LEAD OUTSIDE ATTORNEY WITH BALTIMORE LAW FIRM PIPER & MARBURY YOU CAN'T TAKE PRESENTDAY SENSIBILITIES AND KNOWLEDGE AND APPLY THEM AGAINST CONDUCT 40 OR 50 YEARS AGO HE SAID THE CASE GOES BACK TO 1942 THE YEAR THAT HOOKER BEGAN A DECADE OF DUMPING ITS CHEMICAL WASTE AT THE ABANDONED CANAL IN THE 1970S GROUNDWATER CONTAINING TOXIC CHEMICALS BEGAN SEEPING INTO BASEMENTS AND YARDS FORCING STATE HEALTH OFFICIALS TO RELOCATE 2500 RESIDENTS IN 1978 DURING A 78DAY NONJURY TRIAL BEFORE JUDGE CURTIN TWO YEARS AGO OCCIDENTAL ARGUED THAT HOOKER WARNED OF TOXIC WASTE BURIED AT THE SITE WHEN IT SOLD THE PROPERTY IN 1953 TO THE NIAGARA BOARD OF EDUCATION THE COMPANY SUPPLIED THE BOARD WITH A MAP SHOWING WHERE THE WASTE WAS BURIED DUG 10 HOLES TO DEMONSTRATE THAT NONE OF IT HAD SPREAD AND WAS ASSURED BY SCHOOL OFFICIALS THAT NO SCHOOL WOULD BE BUILT ON THE SITE ACCORDING TO OCCIDENTAL A SCHOOL WAS BUILT THERE A YEAR LATER JUDGE CURTIN SAID HOOKER'S CONDUCT AFTER THE SALE WAS CLEARLY UNACCEPTABLE BY PRESENTDAY STANDARDS AND AT TIMES VIOLATIVE OF COMMON SENSE BUT HE ADDED IT WASN'T THE DEGREE OF RECKLESSNESS THAT WOULD WARRANT PUNITIVE DAMAGES HOOKER HE WROTE WAS CLEARLY NEGLIGENT FOR NOT WARNING THAT CHEMICALS HAD BEEN DUMPED IN SHALLOW HOLES IN THE CENTRAL SECTION OF THE LAND WHEN IT LEARNED THAT A SCHOOL WAS IN FACT TO BE BUILT THERE BUT HE FOUND THAT HOOKER VIOLATED NO LEGAL ORDINANCE AND RESPONDED WITH HELP TO COMPLAINTS OF ODORS FIRES AND EXPOSURES NEW YORK ATTORNEY GENERAL G OLIVER KOPPELL SAID THAT THE JUDGE'S RULING READ LIKE AN INDICTMENT OF HOOKER'S CONDUCT AND THAT THE FINDING OF NEGLIGENCE MAKES OCCIDENTAL FULLY LIABLE FOR CLEANUP COSTS STILL TO BE DECIDED IS WHETHER THE FEDERAL GOVERNMENT NEW YORK STATE THE CITY OF NIAGARA FALLS AND THE SCHOOL BOARD SHOULD SHARE THE COST OF THE CLEANUP 9403180132 940318 CREDIT MARKETS TREASURY SECURITIES ENCOUNTER MODERATE LOSSES DESPITE SEEMINGLY POSITIVE NEWS ON THE ECONOMY BY LYNN ADLER AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK TREASURY SECURITIES POSTED MODERATE LOSSES AS THE BOND MARKET WAS UNABLE TO EXTEND A TWODAY RALLY DESPITE MORE SEEMINGLY FAVORABLE ECONOMIC NEWS THE BENCHMARK 30YEAR TREASURY BOND DROPPED 3/8 POINT OR 375 FOR A BOND WITH 1000 FACE VALUE TO 92 20/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 682 FROM 679 WEDNESDAY BOND PRICES HAD BEEN HIGHER AT MIDMORNING AFTER RELEASE OF THE PHILADELPHIA FEDERAL RESERVE'S BUSINESS OUTLOOK SURVEY FOR MARCH THE REPORT OFFERED MORE EVIDENCE OF MODERATE PRICE PRESSURES AND ECONOMIC ACTIVITY THE PRICESPAID INDEX A REGIONAL INFLATION GAUGE WHOSE LAST RELEASE PROMPTED A BOND PRICE SLUMP PLUNGED TO A READING OF 16 IN MARCH FROM 304 IN FEBRUARY THE OVERALL BUSINESS ACTIVITY INDEX ALSO FELL TO 241 IN MARCH FROM FEBRUARY'S 267 BOND INVESTORS OFTEN WELCOME NEWS OF A SLOWING ECONOMY BECAUSE THEY FEAR RAPID GROWTH WILL LEAD TO HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN KEVIN FLANAGAN MONEY MARKET ECONOMIST AT DEAN WITTER REYNOLDS INC NOTED THAT OVERALL THE FAVORABLE INFLATION REPORTS THIS WEEK HELPED THE MARKET STABILIZE ITS WORST FEARS APPEARED TO BE UNFOUNDED BUT WHILE FEBRUARY CONSUMER PRICE AND PRODUCER PRICE DATA AND THE PHILADELPHIA FED REPORT MAY HAVE SOOTHED FEARS ANALYSTS AND TRADERS SAY CHANCES OF A SIGNIFICANT RALLY ARE DIM PERHAPS WE WILL HAVE A LITTLE REPRIEVE FOR THE TIME BEING BUT I WOULD STRESS FOR THE TIME BEING SAID MR FLANAGAN ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST CO SAID ALL THE MARKET IS GOING TO DO IS HAVE TECHNICAL RALLIES UNTIL A TIME THAT IT'S CONVINCED THAT THE FED IS FINISHED WITH ITS JOB OF RAISING RATES TO ATTACK INFLATION I HAVEN'T SEEN ANYTHING THAT WOULD TELL ME THE MARKET WOULD BE CONVINCED OF THAT ANYTIME IN THE NEAR FUTURE ADDED MR DEDERICK BOND MARKET PLAYERS ARE FOCUSING ON NEXT TUESDAY WHEN THE FEDERAL OPEN MARKET COMMITTEE THE FED'S POLICYMAKING ARM IS SCHEDULED TO MEET THERE IS MUCH SPECULATION THAT FOMC MEMBERS WILL VOTE TO AGAIN TIGHTEN CREDIT CONDITIONS BY RAISING THE FEDERAL FUNDS RATE TO 35 THE FED LAST RAISED RATES ON FEB 4 WHEN IT NUDGED THE FUNDS RATE AT WHICH BANKS LEND EACH OTHER MONEY TO 325 WITH THE FOMC MEETING IN THE BACK OF YOUR MIND IT'S REALLY HARD TO BE AGGRESSIVE IN TRADING US TREASURYS SAID MR DEDERICK BOND MARKET RALLIES ARE REALLY OUT OF THE QUESTION AS LONG AS THE ECONOMY REMAINS IN WHAT SOME WOULD DESCRIBE AS A SATISFACTORY EXPANSION THERE ARE NO MAJOR ECONOMIC INDICATORS SCHEDULED FOR RELEASE TODAY THE DURABLE GOODS REPORT DUE NEXT WEDNESDAY WILL BE CLOSELY WATCHED BUT SOME ANALYSTS ARE ALREADY TALKING ABOUT THE APRIL 1 REPORT ON MARCH EMPLOYMENT AS BEING THE NEXT BIG MARKET MOVER MEANWHILE A SPOKESMAN FOR THE FEDERAL RESERVE BOARD SAID THAT FED CHAIRMAN ALAN GREENSPAN IS TO MEET WITH PRESIDENT CLINTON AT THE WHITE HOUSE THIS MORNING THE SPOKESMAN DESCRIBED THE MEETING AS ROUTINE AND SAID THERE WASN'T ANY SET AGENDA SUCH SESSIONS AREN'T UNCOMMON BUT THEY AREN'T USUALLY DISCLOSED WORD OF THIS ONE SEEPED OUT BECAUSE THE FED CHAIRMAN CANCELED PLANS TO SPEAK AT A CONFERENCE SPONSORED BY THE FEDERAL RESERVE BANK OF DALLAS ALTHOUGH BOND PRICES APPEAR TO HAVE STABILIZED THE MARKET IS STILL VULNERABLE TO QUICK SHIFTS AND ERRATIC TRADING BOND MARKET PARTICIPANTS WOULD BE PARTICULARLY UNNERVED BY ANY SURGE IN COMMODITIES PRICES SAID MR FLANAGAN OF DEAN WITTER COMMODITIES PRICES WHICH FED CHAIRMAN GREENSPAN RECENTLY CALLED A CLOSELY WATCHED POLICYMAKING MONITOR CONTINUE TO PLAY A ROLE DICTATING TREASURY MARKET DIRECTION STILL DESPITE A 165 POINT DROP YESTERDAY IN THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 COMMODITIES THERE REALLY DOESN'T SEEM TO BE MUCH INTEREST IN BUYING THE TREASURY 30YEAR BOND BELOW THE 680 LEVEL SAID MR FLANAGAN BUT IS THERE POTENTIAL TO DETERIORATE YES THERE'S STILL UNCERTAINTY THE FOMC MAY PROVIDE SOME REASSURANCE SOME MARKET PLAYERS SAID MR DEDERICK OF NORTHERN TRUST DOESN'T BELIEVE THE FED WILL DO AN INSTANT TIGHTENING HE BELIEVES INSTEAD THAT THE FED IS MORE LIKELY TO WAIT UNTIL THE MARKET HAS SETTLED DOWN OTHERWISE IT'S RUNNING THE RISK OF AGGRAVATING THE MARKET'S ILL HUMOR RICHMOND VA FED PRESIDENT ALFRED BROADDUS AN FOMC VOTING MEMBER SAID YESTERDAY THAT THE FOMC MUST STRENGTHEN CONFIDENCE IF THE US ECONOMY IS GOING TO PERFORM AS WELL AS ECONOMISTS HAVE PREDICTED IN COMMENTS TO LAWYERS IN RICHMOND MR BROADDUS ATTRIBUTED THE RECENT LONGTERM RATE RISE TO CONCERN THAT THE FED WON'T BE ABLE TO CONTROL INFLATION WE NEED TO GET AHEAD AND STAY AHEAD OF THE INFLATION CURVE MR BROADDUS SAID THE COMMITMENT TO CONTROLLING INFLATION IS STRONGER THAN IT HAS BEEN IN THE PAST I WOULD ARGUE THAT IT'S A MUCH STRONGER FOUNDATION THAN THE ONE WE HAD BACK IN THE 1960S OR THE 1970S HE ADDED FOR THE SECOND TIME SINCE ITS CREATION IN FEBRUARY COLUMBIA/HCA HEALTHCARE CORP ENTERED THE CORPORATE DEBT MARKET WHICH OTHERWISE SAW ONLY MODERATE ACTIVITY THE COMPANY WAS CREATED WHEN COLUMBIA HEALTHCARE CORP MERGED WITH HCAHOSPITAL CORP OF AMERICA ABOUT 125 BILLION OF DEBT WAS SOLD YESTERDAY INCLUDING A 205 MILLION GLOBAL PRIVATE PLACEMENT FROM FREEPORT TERMINAL MALTA LTD IN THE JUNK BOND MARKET TRADING WAS LIGHT TO MODERATE WITH PRICES UP 1/8 TO 1/4 POINT DURING THE DAY COLUMBIA/HCA HEALTHCARE SOLD 10YEAR NONCALLABLE NOTES PRICED AT 99744 TO YIELD 7186 080 PERCENTAGE POINT ABOVE TREASURYS THE COMPANY WAS IN THE MARKET JUST LAST WEEK WITH 175 MILLION OF FIVEYEAR NOTES PROCEEDS FROM THE DEAL WILL BE USED TO REDUCE THE COMPANY'S BANK DEBT SAID JOHN MCCARTY DIRECTOR OF FINANCE AT THE COMPANY COLUMBIA/HCA PRESENTLY HAS ABOUT 200 MILLION OF BANK DEBT OUTSTANDING AND 16 BILLION OF COMMERCIAL PAPER OUTSTANDING THE COMPANY WOULD LIKE TO PAY OFF ITS BANK DEBT AND REDUCE ITS COMMERCIAL PAPER DEBT TO ABOUT 1 BILLION MR MCCARTY SAID RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FREEPORT TERMINAL MALTA LTD'S 15YEAR BONDS MARKED THE FIRST FOREIGN DEBT EVER SOLD BY A BORROWER FROM MALTA SAID JACQUES DE ST PHALLE HEAD OF INVESTMENTGRADED FIXEDINCOME SYNDICATE AT BT SECURITIES CORP THE CONTAINER TRANSSHIPMENT TERMINAL OPERATOR WILL USE THE PROCEEDS TO DEVELOP A SECOND TRANSSHIPMENT TERMINAL IN MALTA MAKING THE DEAL SIMILAR TO A PROJECT FINANCING HE NOTED THERE WAS WIDESPREAD DISTRIBUTION WITH MORE THAN HALF OF THE DEAL SOLD IN THE US SAID MR DE ST PHALLE INSURANCE COMPANIES WERE THE LARGEST BUYERS AMONG INVESTORS WHO ARE EXPECTED TO HOLD THE AMORTIZING DEBT TO MATURITY HE SAID MALTA'S ECONOMY IS GROWING RAPIDLY AND ITS INFLATION LEVELS ARE VERY LOW MR DE ST PHALLE SAID THE OFFERING DIDN'T EXCITE MUCH INTEREST AMONG EUROPEAN INVESTORS BUT US INVESTORS LIKED ITS 10YEAR YIELD PICKUP OF 115 PERCENTAGE POINTS OVER THE BENCHMARK 10YEAR US TREASURY THE 75 BONDS WERE PRICED AT 99861 TO YIELD 752 AND ARE GUARANTEED BY THE REPUBLIC OF MALTA THE BONDS HAVE A SINKING FUND AND A 10YEAR AVERAGE LIFE MUNICIPAL BONDS WERE GENERALLY UNCHANGED IN LATE TRADING HAVING RUN OUT OF STEAM AFTER GAINING AS MUCH AS 1/4 POINT EARLY IN THE SESSION ALTHOUGH MUNIS DID MANAGE TO HOLD ON TO MUCH OF WHAT THEY GAINED DURING WEDNESDAY'S RALLY THE LIMITED BUYING YESTERDAY CONCERNED SOME MARKET PARTICIPANTS THERE'S STILL A LITTLE SKEPTICISM OUT THERE ABOUT MUNICIPAL BONDS SAID A NEW YORKBASED TRADER ISSUES TOTALING MORE THAN 300 MILLION WERE PRICED YESTERDAY INCLUDING MICHIGAN'S 150 MILLION SERIES 1994A STATE TRUNK LINE FUND BONDS THEY WERE WON BY A GOLDMAN SACHS & CO GROUP AND REOFFERED TO YIELD FROM 3 IN 1995 TO 585 IN 2024 THE BONDS ARE SECURED BY MOTOR VEHICLERELATED TAXES THE MODEST PRICE GAINS SEEN IN MORTGAGE SECURITIES LATE YESTERDAY UNDERSTATE THE MARKET'S PERFORMANCE YESTERDAY TRADERS SAID THE MORTGAGES DEFINITELY ARE OUTPERFORMING SAID DON SEGALAS HEAD OF MORTGAGE TRADING AT TUCKER ANTHONY ONE NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT OR REMIC BACKED BY 16 BILLION IN GOVERNMENT NATIONAL MORTGAGE ASSOCIATION'S 7 1/2 SECURITIES WAS ANNOUNCED YESTERDAY BY THE FEDERAL HOME LOAN MORTGAGE CORP AND UNDERWRITERS ADDED MORE THAN ANOTHER 800 MILLION TO EXISTING DEALS IN LATE TRADING FANNIE MAE'S 7 SECURITIES WERE YIELDING 728 WHICH IS 89 BASIS POINTS ABOVE THE YIELD ON THE TREASURY 10YEAR NOTE IN THE PREVIOUS SESSION THAT YIELD RELATIONSHIP WAS AT 93 BASIS POINTS AND MONDAY IT STOOD AT 100 BASIS POINTS A BASIS POINT IS A HUNDREDTH OF A PERCENTAGE POINT THE FANNIE MAE COUPON YESTERDAY WAS UP 1/32 AT 98 20/32 9403180131 940318 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CANADIAN NATIONAL RAILWAY CO 300 MILLION OF NOTES DUE MARCH 15 2004 PRICED AS 7S AT 9924 TO YIELD 7108 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 72 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHER INC COLUMBIA/HCA HEALTHCARE CORP 150 MILLION ISSUE OF NOTES DUE MARCH 30 2004 PRICED AS 715S AT 99744 TO YIELD 7186 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN BANK SYSTEM 150 MILLION OF NOTES DUE MARCH 28 1996 PRICED AT PAR TO YIELD 515 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR ONE YEAR AND WAS PRICED AT A SPREAD OF 16 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CM&M CORPORATE SECURITIES CO FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF MULTI STEPUP NOTES DUE MARCH 12 2001 PRICED AT PAR TO YIELD 565 FOR THE FIRST TWO YEARS ACCORDING TO MCM CORPORATEWATCH THEREAFTER THE COUPON RISES ANNUALLY TO 6 7 8 9 AND 10 THE NOTES WHICH ARE NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 95 BASIS POINTS ABOVE THE 775 TREASURY MATURING IN FEBRUARY 2001 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST TENNESSEE NA FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE MARCH 26 2001 PRICED AT PAR TO YIELD 66 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 42 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC HARTMARX CORP 100 MILLION OF SENIOR SUBORDINATED NOTES DUE JAN 15 2002 PRICED AS 10875S AT 99322 TO YIELD 11 THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED SINGLEB3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC HEALTHSOUTH REHABILITATION CORP 250 MILLION OF SENIOR SUBORDINATED NOTES DUE APRIL 1 2001 PRICED AT PAR TO YIELD 95 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FOUR YEARS RATED BA3 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC HEALTHSOUTH REHABILITATION CORP 100 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES DUE APRIL 1 2001 PRICED AT PAR TO YIELD 5 THE ISSUE IS NONCALLABLE FOR THREE YEARS THE DEBENTURES ARE CONVERTIBLE INTO COMMON STOCK AT 37625 A SHARE RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC POGO PRODUCING CO 75 MILLION OF 55 CONVERTIBLE SUBORDINATED NOTES DUE 2004 PLUS AMOUNTS NECESSARY TO COVER OVERALLOTMENTS OFFERED THROUGH LEAD UNDERWRITER MERRILL LYNCH & CO PROCEEDS WILL BE USED TO PAY OFF LONGTERM DEBT INCLUDING 24 MILLION OF 1025 CONVERTIBLE SUBORDINATED NOTES DUE 1999 THE COMPANY SAID THE 1025 NOTES WILL BE REDEEMED IMMEDIATELY FOLLOWING THE CURRENT OFFERING WHICH IS TO CLOSE WEDNESDAY BANGOR HYDRO ELECTRIC CO 782500 COMMON SHARES PRICED AT 17 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON BC GAS INC 29 MILLION COMMON SHARES PRICED AT 1615 CANADIAN DOLLARS A SHARE US1184 FOR PROCEEDS OF C468 MILLION 343 MILLION THE CANADABASED UTILITY HOLDING COMPANY SAID THE ISSUE WILL BE UNDERWRITTEN BY BURNS FRY LTD SCOTIAMCLEOD INC AND RICHARDSON GREENSHIELDS OF CANADA LTD CIBER INC INITIAL OFFERING OF 16 MILLION COMMON SHARES PRICED AT 8 APIECE THROUGH UNDERWRITERS LED BY HANIFEN IMHOFF INC EOTT ENERGY PARTNERS LP INITIAL OFFERING OF 10 MILLION COMMON UNITS REPRESENTING LIMITED PARTNER INTERESTS IN EOTT A UNIT OF ENRON CORP PRICED AT 20 APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO NORTHWEST AIRLINES CORP INITIAL OFFERING OF 20 MILLION CLASS A COMMON SHARES PRICED AT 13 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC TRIPLE S PLASTICS INC INITIAL OFFERING OF 12 MILLION COMMON SHARES PRICED AT 1250 APIECE THROUGH UNDERWRITERS LED BY MCDONALD & CO EMERGING MARKETS FLOATING RATE FUND INC INITIAL OFFERING OF 36 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO AND SALOMON BROTHERS FIDELITY ASIA EMERGING MARKETS FUND INC INITIAL OFFERING OF 78 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND MERRILL LYNCH & CO MICHIGAN 150 MILLION SERIES 1994A STATE TRUNK LINE FUND BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 574688 YIELDS FOR REOFFERED BONDS RANGE FROM 3 IN 1995 TO 585 IN 2024 BONDS DUE IN 2020 AND 2024 ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND THOSE SECURITIES CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THE BALANCE OF THE BONDS HAVE A SINGLEA1 RATING FROM MOODY'S AND A DOUBLEAMINUS RATING FROM S&P NEW YORK STATE URBAN DEVELOPMENT CORP 89 MILLION SERIES 1994 YOUTHFACILITIES REVENUE BONDS PRICED BY A DEAN WITTER REYNOLDS INC GROUP INCLUDED IN THE ISSUE ARE 66 MILLION TAXEXEMPT BONDS WHICH ARE PRICED TO YIELD FROM 54 IN 2001 TO 6 IN 2008 AND 2009 MOST OF THE BONDS HAVE RECEIVED A TRIPLEB RATING FROM S&P AND A BAA1 RATING FROM MOODY'S BONDS DUE IN 2014 ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THE OFFERING ALSO INCLUDES 23 MILLION TAXABLE BONDS WHICH ARE PRICED TO YIELD FROM 515 IN 1995 TO 755 IN 2003 THESE BONDS HAVE ALSO RECEIVED A TRIPLEB RATING FROM S&P AND A BAA1 RATING FROM MOODY'S FEDERAL HOME LOAN MORTGAGE CORP 161 BILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES G029 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8 AND WEIGHTED AVERAGE MATURITY OF 348 MONTHS YAMAHA MOTOR CORP USA 150 MILLION OF SENIOR ASSETBACKED CERTIFICATES PRICED AS 625S AT 99 31/32 TO YIELD 634 ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES WERE OFFERED THROUGH YAMAHA MOTOR MASTER TRUST 19941 A SPECIALPURPOSE VEHICLE THE ISSUE WAS STRUCTURED AS A FIVEYEAR SOFTBULLET SECURITY AND WAS PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE THE TREASURYS'S WHENISSUED FIVEYEAR NOTE THE ISSUE IS BACKED BY THE FLOORPLAN RECEIVABLES FROM DOMESTIC DEALERS OF YAMAHA MOTOR PRODUCTS RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CHASE SECURITIES INC CREDIT SUPPORT WAS PROVIDED BY AN 18 SUBORDINATED CLASS OF CERTIFICATES THAT WAS RETAINED BY THE ISSUER THE ISSUER IS A UNIT OF YAMAHA MOTOR CO ASLKCGER IFICO BELGIAN PARENT 75 MILLION CANADIAN OF 65 EUROBONDS DUE DEC 29 1997 AT ISSUE PRICE 1007 VIA WOOD GUNDY INC REOFFERED AT 9955 TO YIELD 663 A MARGIN OF 66 BASIS POINTS OVER CANADIAN GOVERNMENT BOND OF AUGUST 1996 GUARANTOR ASLKCGER BANK FEES 1375 BNP PACIFIC AUSTRALIA LTD FRENCH PARENT 75 MILLION AUSTRALIAN DOLLARS OF 65 EUROBONDS DUE APRIL 28 1997 AT ISSUE PRICE 100675 VIA HAMBROS BANK LTD BONDS YIELD 6766 AT 993 BREAKEVEN PRICE FOR COMANAGERS GUARANTOR BANQUE NATIONALE DE PARIS FEES 15 POINTS LESS 0125 FOR LEAD MANAGER EUROPEAN INVESTMENT BANK SUPRANATIONAL 100 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE OCTOBER 2002 AT VARIABLE ISSUE AND REOFFER PRICE VIA KIDDER PEABODY SECURITIES CO BONDS WILL TRADE INTERCHANGEABLY WITH 500 MILLION OF IDENTICAL BONDS OUTSTANDING PAYABLE SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE LESS 025 POINT MINIMUM COUPON 5 MAXIMUM 825 FEES UNDISCLOSED EUROPEAN INVESTMENT BANK SUPRANATIONAL 300 MILLION DUTCH GUILDERS OF 6 EUROBONDS DUE APRIL 5 2002 AT ISSUE PRICE 10035 VIA RABOBANK NEDERLAND REOFFERED AT 996 TO YIELD 606 A MARGIN OF THREE BASIS POINTS OVER INTERPOLATED YIELD CURVE BETWEEN DUTCH STATE LOANS OF FEBRUARY 2002 AND JUNE 2002 FEES 1 FREEPORT TERMINAL MALTA LTD MALTA 205 MILLION OF GLOBAL NOTES DUE MARCH 29 2009 PRICED AS 75S AT 99861 TO YIELD 752 ACCORDING TO MCM CORPORATEWATCH THE DEBT WHICH HAS A 10YEAR AVERAGE LIFE WAS SOLD IN THE 144A PRIVATEPLACEMENT MARKET THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 115 BASIS POINTS ABOVE TREASURYS BONDS WILL BE AMORTIZED THROUGH SINKING FUND BEGINNING MARCH 1999 EXPECTED AVERAGE LIFE 10 YEARS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH AGENTS LED BY BANKERS TRUST INTERNATIONAL PLC THE DEBT IS GUARANTEED BY THE REPUBLIC OF MALTA PAYABLE SEMIANNUALLY FEES 05 TOYOTA MOTOR CREDIT CORP JAPANESE PARENT 150 MILLION CANADIAN DOLLARS OF 625 EUROBONDS DUE DEC 19 1997 AT ISSUE PRICE 100125 VIA WOOD GUNDY INC REOFFERED AT 98975 TO YIELD 631 A SPREAD OF 60 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND OF AUGUST 1996 FEES 1375 9403180130 940318 PAINEWEBBER CHAIRMAN MARRON GETS COMPENSATION VALUED AT 94 MILLION BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ANNUAL PAYCHECKS APPROACHING 10 MILLION ARE BECOMING COMMONPLACE IN WALL STREET'S EXECUTIVE SUITES THESE DAYS PAINEWEBBER GROUP INC SAID DONALD B MARRON ITS CHAIRMAN AND CHIEF EXECUTIVE RECEIVED A 1993 PAY PACKAGE CURRENTLY VALUED AT 94 MILLION AMID RECORD PROFIT AT THE BIG BROKERAGE FIRM IN A PROXY STATEMENT PAINEWEBBER SAID IT PAID MR MARRON A CASH BONUS OF 63 MILLION 58 HIGHER THAN HIS 1992 BONUS MR MARRON'S PAY PACKAGE ALSO INCLUDED SALARY OF 600000 RESTRICTED STOCK VALUED AT 119 MILLION OPTIONS ON PAINEWEBBER SHARES VALUED AT 789241 AND OTHER COMPENSATION OF 534432 THE PROXY SAID MR MARRON ALSO RECEIVED 27 MILLION IN 1993 FOR EXERCISING OPTIONS ON 139218 PAINEWEBBER SHARES THE PROXY SAID AS OF DEC 31 L993 MR MARRON HELD 73 MILLION IN EXERCISABLE OPTIONS ON PAINEWEBBER STOCK EARLIER THIS WEEK MERRILL LYNCH & CO SAID DANIEL P TULLY ITS CHAIRMAN AND CHIEF EXECUTIVE RECEIVED A 1993 PAY PACKAGE CURRENTLY VALUED AT ABOUT 99 MILLION MERRILL ALSO PAID THREE OTHER TOP EXECUTIVES MORE THAN 6 MILLION APIECE AMID RECORD 1993 PROFIT MR MARRON'S HEFTY 1993 CASH BONUS AND RESTRICTED STOCK AWARD UP 24 FROM 1992 STEMMED FROM PAINEWEBBER'S EXCEPTIONAL FINANCIAL PERFORMANCE FOR 1993 AND ITS STRATEGIC PROGRESS SINCE 1987 THE PROXY SAID THE RESTRICTED STOCK AND OPTIONS PAYOUTS REFLECT THE COMPENSATION COMMITTEE'S POLICY OF TYING A SUBSTANTIAL PORTION OF MR MARRON'S COMPENSATION TO THE FUTURE PERFORMANCE OF PAINEWEBBER STOCK AMID THE BOOM IN TRADING AND UNDERWRITING STOCKS AND BONDS PAINEWEBBER HAD RECORD 1993 NET INCOME OF 2462 MILLION UP 15 FROM 1992 THE PAYCHECKS AT PAINEWEBBER AND MERRILL PORTEND A BANNER PAY YEAR FOR WALL STREET EXECUTIVES WHO ARE BASKING IN THEIR THIRD CONSECUTIVE YEAR OF BLOCKBUSTER PROFITS PAINEWEBBER THE NATION'S FIFTHLARGEST BROKERAGE FIRM ALSO GAVE PAUL B GUENTHER ITS PRESIDENT A 1993 PAY PACKAGE CURRENTLY VALUED AT ABOUT 57 MILLION THE PROXY SAID THIS INCLUDES A 38 MILLION BONUS 58 HIGHER THAN 1992 AS WELL AS 716649 IN RESTRICTED STOCK OPTIONS ON PAINEWEBBER STOCK VALUED AT 473544 AND 307824 IN OTHER COMPENSATION MR GUENTHER'S BASE SALARY IS 400000 JOSEPH J GRANO JR PAINEWEBBER'S BROKERAGE CHIEF RECEIVED A PAY PACKAGE VALUED AT ABOUT 56 MILLION THE PROXY SAID LEE FENSTERSTOCK AN EXECUTIVE VICE PRESIDENT AND HEAD OF INSTITUTIONAL SALES AND TRADING RECEIVED 1993 PAY CURRENTLY VALUED AT 43 MILLION 9403180129 940318 BOARD OF US SHOE REJECTS PROPOSAL TO BREAK IT UP BY GABRIELLA STERN AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL US SHOE CORP'S BOARD REJECTED A SHAREHOLDER PROPOSAL TO BREAK UP THE COMPANY SAYING THE PLAN WOULD POSE POTENTIAL SOLVENCY RISKS TO THE RESULTING THREE BUSINESSES THE CINCINNATI COMPANY SAID A PROPOSAL BY MONEY MANAGER GREENWAY PARTNERS LP WHICH IS RUN BY ALFRED KINGSLEY WOULD DERAIL EXISTING PLANS TO FIX ITS SAGGING FOOTWARE AND WOMEN'S APPAREL BUSINESSES INCREASE FINANCING AND OPERATING EXPENSES AND WIPE OUT ITS LEASING LEVERAGE WITH MALL DEVELOPERS US SHOE SAID LATE YESTERDAY AFTERNOON THAT IT WILL RECOMMEND THAT SHAREHOLDERS VOTE AGAINST THE PROPOSAL WHICH WAS FILED BY TWO INDIVIDUAL SHAREHOLDERS ALFRED AND SONDRA MARKIM ALONG WITH GREENWAY WHICH OWNS 43 OF COMMON STOCK OUTSTANDING THE ADVISORY PROPOSAL WILL BE INCLUDED IN THE PROXY STATEMENT FOR ITS MAY 26 ANNUAL MEETING BANNUS B HUDSON PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID HE EXPECTS THE PROPOSAL TO BE CLOSELY SCRUTINIZED BY HOLDERS AND HE INTENDS TO MAKE SURE THEY UNDERSTAND WHY WE DO NOT THINK THIS PROPOSAL IS A GOOD IDEA HE SAID HE PLANS TO MEET WITH SASCO CAPITAL INC ITS BIGGEST INSTITUTIONAL SHAREHOLDER AND THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM AMONG OTHERS SASCO DECLINED TO COMMENT CALPERS COULDN'T BE REACHED MR KINGSLEY SAID HE WAS DISAPPOINTED BUT NOT SURPRISED BY THE BOARD'S DECISION AND ADDED THAT HE WILL KEEP PUSHING HIS PROPOSAL THEY SAY THEY DON'T LIKE IT BUT WE HAVEN'T SEEN ANY ALTERNATIVES SO WE INTEND TO TAKE OUR PLAN TO THE SHAREHOLDERS HE REJECTED THE COMPANY'S CLAIM THAT KEEPING THE DIVERSE RETAIL OPERATIONS UNDER ONE ROOF WOULD ENHANCE SHAREHOLDER VALUE WE'VE SEEN A LOT OF RESTRUCTURING AT US SHOE IN THE PAST IN DRIBS AND DRABS HE SAID US SHOE'S MR HUDSON SAID THE PROPOSAL WOULD DIVERT EXECUTIVES' ATTENTION IN THE MIDDLE OF A TURNAROUND AND THUS ADVERSELY AFFECT THEIR FINANCIAL PERFORMANCE HE NOTED THAT THE COMPANY HAS ALREADY BROUGHT IN NEW TOP MANAGERS TO RUN THE FOOTWEAR AND APPAREL BUSINESSES SOLD SOME NONPRODUCTIVE ASSETS AND ANNOUNCED PLANS TO ELIMINATE 700 JOBS MR HUDSON ALSO SAID THE COMPANY'S CONCENTRATION IN SHOPPING MALLS GIVES IT CLOUT WITH DEVELOPERS THAT WOULD BE LOST IN A SPINOFF MOREOVER THE COMPANY WOULD HAVE DIFFICULTY RENEGOTIATING ITS MALL LEASES POTENTIALLY SADDLING IT WITH MORE THAN 500 MILLION OF LEASE LIABILITIES AND POSING A MAJOR RISK SHOULD ONE OF THE NEW COMPANIES FAIL TO PERFORM ALSO MR HUDSON SAID THE THREE SEPARATE BUSINESSES WOULD NOT BE ABLE TO ASSUME US SHOE'S APPROXIMATELY 180 MILLION IN DEBT HE SAID THE FOOTWEAR AND APPAREL UNITS GENERATE SO LITTLE CASH THAT THE HEALTHIER SPINOFF LENSCRAFTERS WOULD HAVE TO ABSORB MOST OF THE DEBT JEOPARDIZING ITS FINANCIAL PERFORMANCE MOREOVER WITHOUT US SHOE'S BIG BALANCE SHEET SUPPLIERS TO THE APPAREL SPINOFF WOULD EXACT MORE SEVERE TERMS SIGNIFICANTLY INCREASING ITS RISK OF INSOLVENCY 9403180128 940318 BIOSENSOR CORP ACQUISITION MINNEAPOLIS BIOSENSOR CORP ACQUIRED SUBSTANTIALLY ALL THE ASSETS OF MARCOM INC OF NEW HOPE MINN TERMS WEREN'T DISCLOSED BIOSENSOR SAID THE ASSETS RELATE TO OR ARE USED IN THE MANUFACTURE OF MARCOM MONITORING DEVICES THE COMPANY SAID THE ASSETS INCLUDE TECHNOLOGY AND PROPRIETARY RIGHTS INVENTORIES MACHINERY AND EQUIPMENT FURNITURE TRADEMARKS SALES BACKLOG AND MARKETING MANUFACTURING AND SERVICE RECORDS MARCOM MANUFACTURES EQUIPMENT THAT SENDS HEART SIGNALS TO AND DISPLAYS THEM FROM A NURSING STATION USING RADIO WAVES BIOSENSOR BASED IN PLYMOUTH MINN DEVELOPS MANUFACTURES AND SELLS DIAGNOSTIC EQUIPMENT 9403180127 940318 MARKETING & MEDIA MASSACHUSETTS'S CHARTER AWARDS INCLUDE 3 SCHOOLS TO BE RUN FOR PROFIT BY WHITTLE BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON THE STATE OF MASSACHUSETTS IS EXPECTED TO AWARD CHARTERS TODAY TO START 15 NEW PUBLICLY FUNDED SCHOOLS INCLUDING THREE ELEMENTARY SCHOOLS THAT WOULD BE RUN FOR PROFIT BY WHITTLE COMMUNICATIONS LP'S EDISON PROJECT THE CONCEPT OF CHARTER SCHOOLS PUBLIC SCHOOLS THAT RECEIVE STATE FUNDING BUT HAVE SOME AUTONOMY FROM LOCAL SCHOOL BOARDS AND RULES THAT GOVERN CONVENTIONAL SCHOOLS HAS BEEN SPREADING NATIONALLY IN ISSUING CHARTERS TO WHITTLE THE ONLY APPLICANT THAT WON MULTIPLE CHARTERS MASSACHUSETTS REJECTED ARGUMENTS OF TEACHERS' UNIONS AND SOME EDUCATORS WHO CONTEND THAT PROFITMAKING MOTIVES WILL LEAD TO CUTTING CORNERS AND INFERIOR EDUCATION FOR WHITTLE OF KNOXVILLE TENN WINNING THE CHARTERS IS A SMALL STEP FORWARD AFTER SEVERAL SETBACKS TO THE EDISON PROJECT WHICH PULLED BACK FROM ITS ORIGINAL PLANS TO BUILD HUNDREDS OF FORPROFIT SCHOOLS AFTER FINANCING PROVED DIFFICULT OPENING IN 1995 THE NEW CHARTER SCHOOLS INCLUDING FIVE IN BOSTON TWO IN LOWELL AND EIGHT OTHERS SCATTERED AROUND THE STATE WILL OPEN IN SEPTEMBER 1995 ASSUMING THE WINNING PROPOSALS CAN CLEAR BUREAUCRATIC HURDLES UNDER MASSACHUSETTS LAW ANOTHER 10 CHARTER SCHOOLS CAN BE APPROVED AND REJECTED APPLICANTS MAY REAPPLY MINNESOTA AND CALIFORNIA ALREADY ARE OPERATING CHARTER SCHOOLS WHILE MASSACHUSETTS AND SIX OTHER STATES HAVE ENACTED LEGISLATION AUTHORIZING THEM MASSACHUSETTS' LAW HAS DRAWN PARTICULAR ATTENTION BECAUSE IT PROVIDES GREATER INDEPENDENCE FROM THE EDUCATIONAL ESTABLISHMENT THAN MOST OTHER STATES OFFER STATE OFFICIALS WINNOWED THE 15 WINNING PROPOSALS FROM 64 SUBMITTED LAST MONTH ACCORDING TO SOURCES FAMILIAR WITH THE PROCESS THE NEW SCHOOLS WILL BE DEVELOPED BY DIVERSE APPLICANTS INCLUDING BOSTON UNIVERSITY MIDDLESEX COMMUNITY COLLEGE IN LOWELL A PARENTS GROUP ON CAPE COD TWO PUBLIC SCHOOL TEACHERS A BOSTON PROGRAM FOR HIGHSCHOOL DROPOUTS A DAYCARE CENTER AND A PRIVATE CONSULTING COMPANY THAT WORKS WITH NONPROFIT GROUPS AT LEAST THREE OF THE NEW SCHOOLS HOPE TO FOCUS ON POOR CHILDREN IN INNERCITY BOSTON THE APPROVED EDISON SCHOOLS WILL BE AMONG THE FIRST OF A PLANNED NETWORK OF INNOVATIVE INSTITUTIONS EDISON OFFICIALS HOPE TO OPEN UP TO A DOZEN SIMILAR SCHOOLS NEXT YEAR IN COLORADO ARIZONA AND POSSIBLY VIRGINIA UNDER EDISON'S PROPOSED PLANS THE NEW SCHOOLS IN MASSACHUSETTS WILL BEGIN AS ELEMENTARY SCHOOLS BUT EVENTUALLY WILL BE EXPANDED THROUGH 12TH GRADE EDISON OFFICIALS HAVE SAID THEY EXPECT TO INVEST UP TO 3 MILLION IN EACH SCHOOL WHICH WILL HAVE LONGER DAYS AND A LONGER YEAR THAN CONVENTIONAL PUBLIC SCHOOLS WITH HEAVY EMPHASIS ON INTENSIVE ACADEMICS ART AND MUSIC THE SCHOOLS WILL FEATURE SMALL GROUPS OF TEAM TEACHERS TO WORK WITH THE SAME STUDENTS FOR SEVERAL YEARS 9403180126 940318 TRACOR UNIT GETS NAVY JOB AUSTIN TEXAS TRACOR INC SAID ITS APPLIED SCIENCES INC UNIT WAS AWARDED A FIVEYEAR CONTRACT WITH A TOTAL POTENTIAL VALUE OF 132 MILLION BY THE NAVAL UNDERSEA WARFARE CENTER THE CONTRACT IS TO PROVIDE ENGINEERING DEVELOPMENT SUPPORT FOR ANTISUBMARINE WARFARE SYSTEMS FOR SURFACE SHIPS AND ANALYSIS AND LIFECYCLE SUPPORT OF SONAR TRANSMITTER AND RECEIVER SUBSYSTEMS THE COMPANY SAID THE CONTRACT CONTINUES MORE THAN 15 YEARS OF PROVIDING SIMILAR WORK TO THE US NAVY 9403180125 940318 WHO'S NEWS DRESSER INDUSTRIES INC DRESSER INDUSTRIES INC DALLAS J LANDIS MARTIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NL INDUSTRIES INC WAS ELECTED A DIRECTOR OF THIS OILFIELD SERVICE CONCERN THE ELECTION OF MR MARTIN 47 YEARS OLD INCREASES THE BOARD TO 13 MEMBERS 9403180124 940318 FINANCIAL OUTLOOK IN LOSS ON STUDENT LOANS IMPROVES WASHINGTON THE EDUCATION DEPARTMENT SAID IT NOW BELIEVES IT HAS BROKEN EVEN IN THE INSOLVENCY OF A STUDENTLOAN GUARANTY AGENCY THAT ONCE WAS EXPECTED TO COST TAXPAYERS AT LEAST 26 MILLION THE AGENCY THE HIGH EDUCATION ASSISTANCE FOUNDATION BECAME INSOLVENT IN 1990 AS A RESULT OF DEFAULTS ON HIGHRISK LOANS IT HAD BACKED BUT A TRANSITION FOUNDATION CREATED AFTER THE INSOLVENCY WAS ABLE TO COLLECT 300 MILLION FROM DEFAULTED LOANS THAT'S MORE THAN THE DEPARTMENT PREDICTED FOUR YEARS AGO AND THE AMOUNT EQUALED THE EDUCATION DEPARTMENT'S COST IN PHASING OUT THE FOUNDATION THE TRANSITION AGENCY WAS SUPERVISED BY THE STUDENT LOAN MARKETING ASSOCIATION 9403180123 940318 FINANCING BUSINESS INTELCOM GROUP INC INTELCOM GROUP INC DENVER FILED PLANS FOR A PUBLIC STOCK OFFERING THAT COULD RAISE AS MUCH AS 115 MILLION THE OFFERING OF FIVE MILLION COMMON SHARES PLUS AN OVERALLOTMENT OPTION OF 750000 SHARES IS BEING MANAGED BY UNDERWRITERS LED BY PAINEWEBBER INC INTELCOM SAID IT WILL USE ABOUT 167 MILLION OF THE PROCEEDS TO PAY DEBT AND ABOUT 295 MILLION TO COMPLETE CERTAIN PENDING ACQUISITIONS WITH CASH INSTEAD OF STOCK AS INITIALLY INTENDED THE BALANCE WILL BE USED TO EXPAND THE TELEPHONE COMPANY'S COMMUNICATIONS SERVICES AND FOR OTHER PURPOSES THE COMPANY SAID IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY INTELCOM CLOSED AT 20 DOWN 125 CENTS 9403180122 940318 INTERNATIONAL FUJITSU ALCATEL GET CONTRACT TOKYO FUJITSU LTD AND A UNIT OF FRANCE'S ALCATELALSTHOM SA HAVE JOINTLY WON A CONTRACT VALUED AT 13 BILLION YEN 1227 MILLION TO LAY 3400 KILOMETERS OF SUBMARINE FIBEROPTIC CABLE LINKING HONG KONG VIETNAM AND THAILAND BY NOVEMBER 1995 THE JAPANESE COMPUTER AND ELECTRICAL EQUIPMENT MAKER ANNOUNCED FUJITSU SAID ITS SHARE IN THE CONTRACT AWARDED BY AN INTERNATIONAL CONSORTIUM IS VALUED AT SIX BILLION YEN PLANS CALL FOR COMPLETION OF THE SYSTEM BY DECEMBER 1995 9403180121 940318 INTERNATIONAL OLIVETTI FIRM PLAN VENTURE MILAN ING C OLIVETTI & CO AND NORTHERN TELECOM LTD SAID THEY WILL JOINTLY DEVELOP WIRELESS VOICE AND DATA TRANSMISSION PRODUCTS BASED ON THE DIGITAL EUROPEAN CORDLESS TELECOMMUNICATIONS STANDARD THE PRODUCTS ARE DIRECTED AT BUSINESSES AND WILL ALLOW COMMUNICATION OVER PORTABLE TELEPHONES AND THE ELECTRONIC TRANSMISSION OF MAIL DOCUMENTS AND IMAGES OVER NET3 A LOCAL WIRELESS NETWORK INTRODUCED BY OLIVETTI A YEAR AGO THE COMPANY SAID A SPOKESMAN FOR OLIVETTI DECLINED TO PUT A VALUE ON THE MARKET FOR THE PRODUCTS NORTHERN TELECOM IS BASED IN CANADA 9403180120 940318 BUSINESS BRIEF OSHKOSH TRUCK CORP FIRM TO TRIM WORK FORCE TAKE A CHARGE OF 2 MILLION OSHKOSH TRUCK CORP SAID IT IS CUTTING ITS WORK FORCE AT OSHKOSH WIS BY 25 OR 400 EMPLOYEES RESULTING IN A CHARGE OF 2 MILLION OR 23 CENTS A SHARE IN ITS FISCAL SECOND QUARTER ENDING MARCH 31 IN THE QUARTER ENDED MARCH 31 1993 THE COMPANY EARNED 21 MILLION OR 25 CENTS A SHARE ON SALES OF 1543 MILLION THE TRUCKING CONCERN SAID THE DOWNSIZING RELATES TO THE REDUCTION OF ITS DEFENSE BUSINESS AND INCLUDES EARLY RETIREMENTS REDUCTIONS IN WORK FORCE AND LAYOFFS OSHKOSH SAID IT IS REDUCING ITS STAFF TO A LEVEL CONSISTENT WITH EXPECTED FUTURE BUSINESS 9403180119 940318 ECONOMY SIX BIG AIRLINES SETTLE US SUIT ON PRICE FIXING SCHEME USING DATA SYSTEM MAY HAVE COST PUBLIC 2 BILLION IN 4 YEARS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SIX MAJOR AIRLINES SETTLED FEDERAL CHARGES THAT THEY FIXED PRICES IN A SCHEME THAT MAY HAVE COST CONSUMERS NEARLY 2 BILLION BETWEEN 1988 AND 1992 UNDER A CONSENT DECREE FILED IN US DISTRICT COURT HERE THE AIRLINES AGREED THAT THEY WON'T USE AIRLINE TARIFF PUBLISHING CO AN INDUSTRYOWNED COMPUTERIZED FAREINFORMATION SYSTEM TO NEGOTIATE FARE CHANGES THE JUSTICE DEPARTMENT CHARGED THAT THE AIRLINES HAD USED CODED MESSAGES SHOWING PROSPECTIVE PRICE CHANGES AS A WAY OF COMMUNICATING WITH EACH OTHER ABOUT FARES THE AIRLINES ACTUALLY STOPPED THE PRACTICE WHEN THE SUIT WAS FILED MORE THAN A YEAR AGO BUT YESTERDAY'S AGREEMENT WHICH STILL MUST BE APPROVED BY THE COURT AFTER A 60DAY COMMENT PERIOD WOULD PREVENT THEM FROM RESUMING IT ANNE BINGAMAN ASSISTANT ATTORNEY GENERAL FOR ANTITRUST CALLED THE CASE A CRITICALLY IMPORTANT VICTORY FOR AMERICAN CONSUMERS AND AMERICAN BUSINESS SHE SAID THE AIRLINES USED THE ATP FAREDISSEMINATION SYSTEM TO CARRY ON CONVERSATIONS JUST AS DIRECT AND DETAILED AS THOSE TRADITIONALLY CONDUCTED BY CONSPIRATORS OVER THE TELEPHONE OR IN HOTEL ROOMS ALTHOUGH THEIR METHOD WAS NOVEL THEIR CONDUCT AMOUNTED TO PRICE FIXING PLAIN AND SIMPLE J MARK GIDLEY A FORMER BUSH ADMINISTRATION ANTITRUST OFFICIAL WHO WORKED ON THE SUIT SAID THE CASE TAKES ANTITRUST PROBES INTO THE HIGHTECH ERA BY ESTABLISHING THAT PRICEFIXING AGREEMENTS CAN BE MADE USING COMPUTERS AIRLINES AGREEING TO THE CONSENT DECREE INCLUDE ALASKA AIR GROUP INC'S ALASKA AIRLINES AMR CORP'S AMERICAN AIRLINES CONTINENTAL AIRLINES DELTA AIR LINES NORTHWEST AIRLINES AND TRANS WORLD AIRLINES AIRLINE TARIFF PUBLISHING ALSO WAS PART OF THE ACCORD THE SETTLEMENT IS SUBSTANTIALLY THE SAME AS ONE REACHED WITH UNITED AIR LINES AND USAIR IN DECEMBER 1992 FOLLOWING A THREEYEAR JUSTICE DEPARTMENT INVESTIGATION MS BINGAMAN SAID YESTERDAY'S AGREEMENT PROVIDES FOR NO REFUNDS BECAUSE THE DEPARTMENT ISN'T EMPOWERED TO SEEK THEM SHE SAID THE ADMINISTRATION IS CONSIDERING ASKING CONGRESS FOR SUCH AUTHORITY IN FUTURE CASES THE AIRLINES DIDN'T SHIELD THEIR BITTERNESS AT WHAT THEY THOUGHT WAS A BASELESS ATTACK THEY SAID THEY SETTLED TO AVOID THE COST OF LITIGATION WE CONTINUE TO BELIEVE THAT THE PRICING PRACTICES IN QUESTION BENEFITED THE TRAVELING PUBLIC AND WERE CONSISTENT WITH BOTH THE LAW AND PRACTICE IN MANY INDUSTRIES AMERICAN AIRLINES SAID DELTA AIR LINES SAID THE JUSTICE DEPARTMENT PRESENTED NO EVIDENCE THE INDUSTRY'S PRACTICES WERE ILLEGAL OR ADDED COSTS TO TICKET PRICES PAID BY CONSUMERS IT SHOULD BE EVIDENT TO ANYONE THAT THE AIRLINES ARE FIERCELY COMPETITIVE IN THE PRICING OF THEIR PRODUCT AIRLINES HAVE ALREADY SHOWN THAT THEY CAN RAISE FARES WITHOUT THE BENEFIT OF ELECTRONIC SIGNALS TICKET PRICES HAVE GONE UP AT LEAST A HALFDOZEN TIMES SINCE AIRLINES STOPPED THE SIGNALS INSTEAD A CARRIER WILL RAISE FARES ON WEEKENDS WHEN FEW TICKETS ARE SOLD IF RIVALS DON'T MATCH THE INCREASE THE CARRIER WITHDRAWS THE FARE HIKE ON MONDAY IF EVERYONE AGREES THE INCREASE STICKS THE PROCESS MAY NOT BE AS SMOOTH AS ELECTRONIC SIGNALS BUT THE EFFECT IS THE SAME MS BINGAMAN SAID THE DEPARTMENT IDENTIFIED OVER 50 SEPARATE PRICEFIXING AGREEMENTS BY THE AIRLINES IN ONE CASE CONSUMERS PAID 138 MORE FOR ONEWAY TRAVEL BETWEEN CHICAGO AND DALLAS BECAUSE OF THE AGREEMENT IF COORDINATION RAISED FARES 5 8 ON AN AVERAGE TICKET THE HARM TO CONSUMERS WOULD HAVE AMOUNTED TO 19 BILLION THE DEPARTMENT SAID LAST YEAR NINE MAJOR AIRLINES SETTLED A LAWSUIT THAT MADE ESSENTIALLY THE SAME PRICEFIXING ALLEGATIONS AS THE SUIT BROUGHT BY THE JUSTICE DEPARTMENT THE AIRLINES DENIED WRONGDOING IN THE CIVIL CASE BUT ISSUED 396 MILLION IN TICKET COUPONS PLUS 144 MILLION IN CASH FOR LAWYER FEES AFTER THE GOVERNMENT'S SUIT WAS FILED REPRESENTATIVES OF TRAVEL AGENTS AND CONSUMER GROUPS WERE CRITICAL OF THE DEPARTMENT'S ACTIONS AGAINST THE AIRLINES SAYING CONSUMERS COULD BE DENIED INFORMATION ABOUT WHEN TICKET PRICES WOULD INCREASE BUT MS BINGAMAN SAID THE INFORMATION MORE OFTEN THAN NOT WAS BOGUS IT REALLY WAS INTENDED JUST TO NEGOTIATE PRICES SHE SAID NOTING THAT MORE THAN 50 OF THE TIME PRICES ENDED UP BEING DIFFERENT THAN WHAT WAS QUOTED JAMES HIRSCH IN HOUSTON CONTRIBUTED TO THIS ARTICLE 9403180118 940318 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED MARCH 11 ACCOUNTED FOR 115 OR AN AVERAGE 36 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 141 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 263 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 445 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 598 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS AND 373 FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING ANOTHER 29 WAS CUSTOMER FACILITATION IN WHICH FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES SUSQUEHANNA AND COOPER NEFF EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE JP MORGAN AND SALOMON BROTHERS DID MOST OF THEIR TRADING FOR CUSTOMERS THE NYSE'S PROGRAMTRADING REPORT INCLUDES PROFILES OF PROGRAM ACTIVITY WHENEVER THE DOW JONES INDUSTRIAL AVERAGE MOVES AT LEAST 50 POINTS UP OR DOWN WITHIN AN HOUR ON MARCH 2 WHEN THE DOW FELL 50 POINTS BY 950 AM THE FIRMS REPORTING THE MOST PROGRAM TRADING FROM 930 TO 1030 WERE SUSQUEHANNA KIDDER PEABODY NOMURA SECURITIES AND FIRST BOSTON 9403180117 940318 BABBITT UNVEILS A NEW VERSION OF GRAZING PLAN LATEST PROPOSAL WOULD SHIFT SOME DECISIONMAKING TOWARD THE LOCAL LEVEL BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INTERIOR SECRETARY BRUCE BABBITT UNVEILED A SCALEDBACK VERSION OF THE GRAZING PROPOSAL HE HAS REPEATEDLY TRIED TO IMPLEMENT THROUGH LEGISLATIVE OR ADMINISTRATIVE ACTION THE LATEST VERSION OF THE PLAN A PROPOSAL TO BE PRINTED IN THE FEDERAL REGISTER NEXT WEEK RESULTED FROM DISCUSSIONS AMONG MR BABBITT AND VARIOUS WESTERN GOVERNORS AND OTHERS IN THE REGION WHO OPPOSED EARLIER EFFORTS THE NEW PLAN WOULD SHIFT DECISIONMAKING ON FEDERAL LAND USE TOWARD THE LOCAL LEVEL IN SEVERAL WAYS INCLUDING THE CREATION OF LOCAL ADVISORY COUNCILS AND ALLOWING STATES TO SET CERTAIN CONSERVATION STANDARDS AT A NEWS CONFERENCE MR BABBITT SAID THE NEW PROPOSAL WAS IN EVERY WAY AN IMPROVEMENT ON AN AUGUST PROPOSAL WHICH HE DISCARDED IN FAVOR OF A LEGISLATIVE COMPROMISE THAT FELL VICTIM TO A FILIBUSTER BY SEN PETE DOMENICI R NM MR BABBITT SAID THE NEW RULE REFLECTED A CONSENSUS THAT REMOTECONTROL REGULATION OF FEDERAL LAND BY WASHINGTON WAS UNWORKABLE AN INTERIOR DEPARTMENT STATEMENT ISSUED ON THE PLAN INCLUDED CAUTIOUSLY FAVORABLE COMMENTS FROM GOVS CECIL ANDRUS D IDAHO BOB MILLER D NEV AND MIKE SULLIVAN D WYO BUT ANNA AURILIO STAFF SCIENTIST AT US PUBLIC INTEREST RESEARCH GROUP AN ENVIRONMENTAL AND CONSUMER GROUP CRITICIZED WHAT SHE TERMED WEAK STANDARDS AND GUIDELINES IN THE PLAN ADDING THE ONLY TEETH IN THE PLAN ARE THOSE ON THE COWS RANCHERS WERE ALSO CRITICAL BRAD LITTLE OF THE AMERICAN SHEEP INDUSTRY ASSOCIATION SAID IN A STATEMENT BABBITT'S ORIGINAL PROPOSAL KILLED WESTERN RANCHING THE NEW PROPOSAL PUTS US IN INTENSIVE CARE AS EXPECTED THE PROPOSED REGULATION INCLUDES A SCALEDBACK VERSION OF THE GRAZINGFEE INCREASE THAT THE INTERIOR DEPARTMENT PROPOSED IN AUGUST UNDER THE NEW PLAN GRAZING FEES WOULD BE SET AT 275 AN ANIMAL UNIT MONTH IN 1995 350 IN 1996 AND 396 IN 1997 AN ANIMAL UNIT MONTH IS THE AMOUNT OF FORAGE IT TAKES TO FEED ONE COW AND A CALF OR FIVE SHEEP FOR ONE MONTH THE CURRENT GRAZING FEE IS 198 AND WOULD HAVE RISEN TO 428 UNDER THE AUGUST PROPOSAL UNDER THE NEW GRAZINGFEE PLAN RANCHERS WHO EXCEED ENVIRONMENTAL STANDARDS REQUIRED BY LAW COULD KEEP GRAZING FEES AT 275 EARLIER THIS MONTH SEN HARRY REID D NEV WHO HELPED CRAFT THE FAILED LEGISLATIVE COMPROMISE AND REP GEORGE MILLER D CALIF CHAIRMAN OF THE HOUSE NATURAL RESOURCES COMMITTEE SAID IN A LETTER TO MR BABBITT THAT THEY HAD STRONG OBJECTIONS TO A DRAFT OF THE PROPOSED REGULATION AN AIDE TO MR MILLER SAID THE CONGRESSMAN WAS HEARTENED THAT THE INTERIOR DEPARTMENT HAD ADDRESSED SOME OF THE CONCERNS RAISED IN THE LETTER THOUGH THERE ARE STILL PROBLEMS WITH THE PLAN AN INTERIOR AIDE SAID THE DEPARTMENT HOPED TO ISSUE A FINAL RULE BY THE END OF THE YEAR 9403180116 940318 INTERNATIONAL IRA ATTACKS IN BRITAIN AREN'T LIKELY TO DISRUPT TOURISM EXPERTS SUGGEST BY LAWRENCE INGRASSIA AND KEVIN HELLIKER STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON THE MORTARS THAT THE IRA FIRED AT HEATHROW AIRPORT BEGINNING LAST WEEK DIDN'T EXPLODE NO ONE WAS HURT AND FOREIGN TOURISTS AREN'T CANCELING TRIPS HERE SO FAR ANYWAY BUT THE SHELLING OF HEATHROW INDICATES THAT THE IRISH REPUBLICAN ARMY BY STEPPING UP ATTACKS ON ECONOMIC TARGETS HOPES TO FIND A CRACK IN BRITAIN'S DETERMINATION A DETERMINATION THAT PREVIOUS ATTACKS ON POLITICAL TARGETS FAILED TO DENT STILL MANY EXPERTS ARE SKEPTICAL THAT THIS TACTIC CLEARLY AIMED AT UNDERMINING BRITAIN'S HUGE TOURISM INDUSTRY WILL WORK AFTER ALL EVEN THE HIGHPROFILE DESTRUCTIVE BOMBINGS OF THE CITY OF LONDON'S FINANCIAL DISTRICT IN 1992 AND 1993 FAILED TO MATERIALLY DISRUPT BUSINESS OPERATIONS THERE AND THE OFFICIAL BRITISH GOVERNMENT VIEW IS THAT THE BOMBS HAD NO IMPACT ON THE GOVERNMENT'S POSITION TOWARD WHAT IS KNOWN EUPHEMISTICALLY HERE AS THE IRISH QUESTION SEEN AS STRATEGY THOUGH I SUPPORT THE THEORY THAT THE IRA MOVES FROM ONE ECONOMICALLY SENSITIVE TARGET TO ANOTHER SAYS MICHAEL CASSIDY POLICY CHAIRMAN FOR THE CORPORATION OF LONDON WHICH RUNS THE CITY THE CITY OF LONDON WAS CLEARLY VULNERABLE AND HAD HIGHVALUE PROPERTIES HEATHROW IS ANOTHER ONE NONETHELESS HE MAINTAINS THAT DESPITE ONE DEATH AND 1 BILLION 15 BILLION IN DAMAGES THE CITY DIDN'T LOSE A SINGLE BUSINESS STILL IF THE IRA CAN SUCCEED IN SCARING OFF TOURISTS THE IMPACT COULD BE SIGNIFICANT SOME 193 MILLION TOURISTS INCLUDING 33 MILLION FROM THE US AND CANADA VISITED BRITAIN FROM ABROAD LAST YEAR AND SPENT 91 BILLION NORTH AMERICAN TOURISTS ARE PARTICULARLY SKITTISH ABOUT OVERSEAS TRAVEL WHEN THE SPECTER OF TERRORISM RAISES ITS HEAD THE NUMBER OF NORTH AMERICANS TRAVELING TO BRITAIN DROPPED 26 IN 1986 AFTER US PLANES BOMBED LIBYA THE NUMBER PLUMMETED AGAIN BY 22 IN 1991 BECAUSE OF THE PERSIAN GULF WAR TRADITIONALLY THE AMERICAN MARKET IS INSULAR NOTES PAUL ALLAN CHAIRMAN OF THE GUILD OF BUSINESS TRAVEL AGENTS THEY SAY OH GOD SOMETHING'S GOING ON AT HEATHROW' THUS IF THE IRA CAN KEEP DISRUPTING THE AIRPORT THE NUMBER OF AMERICAN VISITORS COULD SHRINK HE SAYS BUT DOING SUFFICIENT DAMAGE TO SCARE OFF TOURISTS POSES RISKS FOR THE IRA AS WELL FOR ONE A HANDFUL OF UNEXPLODED HOMEMADE MORTARS WHILE GENERATING WORLDWIDE PUBLICITY MAY NOT BE ENOUGH FUNDAMENTALIST MUSLIM TERRORISTS HAVE CRIPPLED THE TOURIST INDUSTRY IN EGYPT WHICH THE GOVERNMENT SAYS CUT INCOME TO 13 BILLION LAST YEAR FROM 21 BILLION IN 1992 BUT THEY HAVE DONE SO BY DIRECTLY ATTACKING TOURISTS KILLING THREE WESTERNERS IN LUXURY HOTELS LAST FALL FOR EXAMPLE ALTHOUGH SOME IRA ATTACKS HAVE KILLED CIVILIANS AND BYSTANDERS THE ORGANIZATION CAN ILL AFFORD TO KILL FOREIGN TOURISTS EVEN IF BY ACCIDENT SAY THOSE WHO MONITOR THE GROUP THE IRA DEPENDS ON INTERNATIONAL OPINION IN A WAY THAT EGYPTIAN FUNDAMENTALISTS DON'T NOTES STEVE BRUCE AN EXPERT ON TERRORISM AT UNIVERSITY OF ABERDEEN DOES THE IRA SERIOUSLY WANT A LARGE NUMBER OF DEAD AMERICAN TOURISTS MOREOVER EVEN IF THE IRA DOES SUCCEED IN SCARING AWAY TOURISTS WITHOUT KILLING THEM THAT MIGHT NOT HELP IT ACHIEVE ITS GOAL OF FORCING THE BRITISH OUT OF NORTHERN IRELAND FOR ALL THEIR SUCCESS IN TARGETING TOURISTS AND HURTING EGYPT'S ECONOMY ISLAMIC FUNDAMENTALISTS HAVEN'T WON ANY MAJOR POLICY CHANGES FROM THE GOVERNMENT OF PRESIDENT HOSNI MUBARAK ALGERIAN FUNDAMENTALISTS WHILE DAMAGING THEIR NATION'S ECONOMY BY TARGETING FOREIGN BUSINESSES HAVEN'T FARED ANY BETTER THERE'S NO EVIDENCE THAT THESE TACTICS WORK BECAUSE ALL OF THESE COUNTRIES ARE QUITE DETERMINED TO RESIST THE AGENDA OF THESE GROUPS SAYS PHILIP ZELIKOW A HARVARD UNIVERSITY ASSISTANT PROFESSOR AND FORMER NATIONAL SECURITY COUNCIL MEMBER DURING THE BUSH ADMINISTRATION INDEED AS MR CASSIDY NOTES LAST YEAR'S BOMBING OF THE CITY OF LONDON IS VIEWED AS A RIPPLE THAT HAS LARGELY DISAPPEARED NO CORPORATIONS HAVE PULLED OUT EVEN THOUGH THE IRA UNDERSCORED ITS ACTIONS BY WRITING THREATENING LETTERS TO TOP FOREIGN FINANCIAL COMPANIES EXCEPT AMERICAN ONES PAUL WILKINSON AN EXPERT ON TERRORISM AT THE UNIVERSITY OF ST ANDREWS SAYS THAT IRA VIOLENCE ECONOMIC OR POLITICAL WON'T MAKE THE BRITISH GOVERNMENT BUDGE WHEN YOU REMEMBER WHAT LONDONERS WENT THROUGH IN THE BLITZ DURING WORLD WAR II THE MASSIVE DESTRUCTION IT'S PRETTY CLEAR THAT TERRORISM AS A WEAPON WON'T HAVE AN EFFECT HE ARGUES ADDS PROF BRUCE THE BRITISH GOVERNMENT HAVE ALREADY SPENT SQUILLIONS OVER 25 YEARS FIGHTING IRA VIOLENCE SO A FEW MORE YEARS WON'T BOTHER THEM THAT MUCH BUT OTHERS SAY THAT TERRORISM MAY BE MORE EFFECTIVE THAN THE GOVERNMENT AND SOME EXPERTS ACKNOWLEDGE PROTESTANTS IN NORTHERN IRELAND HAVE SAID PUBLICLY THAT THE JOINT DECLARATION BETWEEN BRITISH AND IRISH GOVERNMENTS SIGNED LAST DECEMBER AS A FRAMEWORK FOR PEACE WAS EVIDENCE THAT THE IRA'S CAMPAIGN OF VIOLENCE IS PAYING OFF MOREOVER SECRET CONTACTS BETWEEN THE IRA AND THE BRITISH GOVERNMENT LAST SPRING SOME PROTESTANTS NOTE OCCURRED AROUND THE TIME OF THE SECOND CITY BOMBING IN THE DECLARATION BRITAIN AGREED THAT NORTHERN IRELAND'S FUTURE SHOULD BE DECIDED BY A MAJORITY OF ITS POPULATION EVEN IF IT DECIDES TO LEAVE THE UK AND BECOME PART OF THE IRISH REPUBLIC ALTHOUGH THIS ISN'T LIKELY CURRENTLY BECAUSE PROTESTANTS ARE IN THE MAJORITY THIS COULD HAPPEN IN THE FUTURE SINN FEIN THE IRA'S POLITICAL ARM MAINTAINS THAT ALL OF IRELAND SHOULD DECIDE THE NORTH'S FUTURE SINN FEIN HAS YET TO AGREE TO NEGOTIATE UNDER THE PEACE FRAMEWORK ARGUING THAT THE BRITISH GOVERNMENT MUST MAKE MORE CONCESSIONS EVEN IF THE INCREASED SECURITY AT HEATHROW PREVENTS FURTHER IRA ATTACKS THAT SCARE OFF TOURISTS THE MORTARS WILL HAVE SERVED ANOTHER PURPOSE WHAT THE IRA WAS DOING WITH HEATHROW WAS PROVING HOW BLOODY GOOD THEY ARE AT CAUSING MAXIMUM DISRUPTION NOTES PROF BRUCE TO BE ABLE TO HAVE THAT KIND OF IMPACT ON LIVES OF SO MANY PEOPLE IS A MAJOR SHOW OF COMPETENCE 9403180114 940318 INTERNATIONAL LUFTHANSA AG LOSS NARROWS FOR THE YEAR BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL GERMAN AIRLINE LUFTHANSA AG SURPASSED EVEN ITS OWN EXPECTATIONS FOR 1993 NARROWING ITS LOSS BY MORE THAN TWOTHIRDS TO 110 MILLION MARKS 652 MILLION PRELIMINARY FIGURES RELEASED YESTERDAY SHOW THE PARENT AIRLINE NARROWED ITS LOSS FROM 373 MILLION MARKS A YEAR EARLIER LUFTHANSA WHICH HAD HOPED TO HALVE ITS LOSS FROM THE PREVIOUS YEAR ATTRIBUTED THE IMPROVEMENT TO AN AGGRESSIVE RESTRUCTURING PROGRAM THAT SLASHED ITS WORK FORCE BY ABOUT 8 LUFTHANSA HAS BEEN RESTRUCTURING SINCE 1991 WHEN IT SWUNG INTO THE RED FOR THE FIRST TIME IN TWO DECADES AS THE AIRLINE INDUSTRY REACHED ITS WORST RECESSION BUT UNLIKE SOME OF ITS EUROPEAN COUNTERPARTS THE GERMAN CARRIER'S CHANGES INVOLVE MORE THAN COSMETIC REORGANIZATION AND CAPITAL INJECTIONS WHILE LUFTHANSA'S HOME IN GERMANY DOOMS IT TO REMAIN A HIGHCOST AIRLINE THE CARRIER HAS WON PRAISE FROM ANALYSTS FOR BRINGING COSTS MORE IN LINE WITH REVENUE IN FACT THE CARRIER CUT ITS OPERATING COSTS BY 3 OR 500 MILLION MARKS IN 1993 THE BIGGEST FACTOR IN BRINGING DOWN SPENDING WAS THE ELIMINATION OF 4000 JOBS IN 1993 THE MOVE ACCOUNTED FOR SAVINGS OF MORE THAN 300 MILLION MARKS THE AIRLINE ALSO TRIMMED COSTS BY MOVING TO SMALLER AIRCRAFT WHICH HELPED KEEP AIRPORT CHARGES UNCHANGED FROM THE PREVIOUS YEAR LUFTHANSA NOTED THAT IN 1992 CHARGES ROSE BY 343 MILLION MARKS LUFTHANSA'S CONSOLIDATED RESULTS AREN'T DUE UNTIL MAY AND ANALYSTS EXPECT THEY WILL SHOW ONLY SLIGHT DIFFERENCES FROM THE PARENTCOMPANY FIGURES MEANWHILE YESTERDAY'S NEWS ENCOURAGED ANALYSTS TO PREDICT THE AIRLINE WILL AT LEAST BREAK EVEN IN THE CURRENT YEAR THEY'RE PULLING OUT ALL THE STOPS TO TURN A PROFIT SAID JAMES HALSTEAD OF SWISS BANK CORP IN LONDON INDEED LUFTHANSA IS UNDER INTENSE PRESSURE TO POST A BREAKEVEN RESULT OR A PROFIT IN THE CURRENT YEAR SINCE THE GERMAN GOVERNMENT INTENDS TO SELL MUCH OF ITS 51 STAKE IN THE AIRLINE FIRST HOWEVER THE GOVERNMENT MUST SOLVE THE TRICKY QUESTION OF HOW TO PROVIDE FOR LUFTHANSA WORKERS' PENSIONS WHICH ARE NOW PART OF A STATE SCHEME THAT CANNOT MAKE PAYMENTS FOR COMPANIES IN WHICH THE GOVERNMENT IS A MINORITY SHAREHOLDER 9403180113 940318 JUDGE ORDERS PAYMENT OF 9 MILLION IN SUIT BY EXBLUE CROSS STAFF BOSTON A FEDERAL JUDGE ORDERED BLUE CROSS & BLUE SHIELD OF MASSACHUSETTS INC TO PAY AN ESTIMATED 9 MILLION TO NEARLY 500 FORMER EMPLOYEES WHOSE JOBS WERE TRANSFERRED TO ELECTRONIC DATA SYSTEMS CORP IN 1992 THE EMPLOYEES FILED A CLASSACTION SUIT THE SUIT CONTENDED THAT EVEN THOUGH THE WORKERS WERE OFFERED JOBS WITH EDS THEY WERE ENTITLED TO SEVERANCE BENEFITS FROM BLUE CROSS THE LARGEST HEALTHSERVICE PROVIDER IN THE STATE US DISTRICT COURT JUDGE ROBERT E KEETON RULED THAT 480 FORMER BLUE CROSS EMPLOYEES SHOULD GET WHAT THEY WOULD HAVE RECEIVED UNDER THEIR FORMER EMPLOYER'S SEVERANCE PLAN PLUS INTEREST ACCRUED AFTER THEIR JOBS WERE TRANSFERRED THE RULING WHICH WAS RELEASED YESTERDAY DOESN'T AFFECT DALLASBASED EDS A UNIT OF GENERAL MOTORS CORP A BLUE CROSS ATTORNEY TERMED THE PAYMENTS AN UNDESERVED WINDFALL AND VOWED AN APPEAL 9403180112 940318 TECHNOLOGY AT&T LOTUS DEVELOPMENT ANNOUNCE COMPUTERINFORMATION JOINT VENTURE BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO AND LOTUS DEVELOPMENT CORP ANNOUNCED A JOINT VENTURE INTENDED TO BRING A NEW CLASS OF COMPUTERINFORMATION SERVICE TO BUSINESSES AND EVENTUALLY TO CONSUMERS THE SERVICE TO BE CALLED AT&T NETWORK NOTES WILL BE RUN BY AT&T AND BUILT AROUND LOTUS NOTES A HOTSELLING PIECE OF SOFTWARE THAT IS DESIGNED FOR GROUP USE RATHER THAN BY INDIVIDUALS IT LETS USERS CONFER ON LINE BROWSE INFORMATION IN TEXT OR VIDEO FORM AND CAN BE DESIGNED TO CARRY OUT SALES TRANSACTIONS TALKS LEADING UP TO YESTERDAY'S ANNOUNCEMENT HAVE GENERATED MUCH ENTHUSIASM ON WALL STREET INVESTORS HAVE ENVISAGED BROAD POSSIBLE USES FOR THE NEW SERVICE WHICH WOULD GO WELL BEYOND THE FEATURES AVAILABLE ON CURRENT ONLINE COMPUTER SERVICES SUCH AS PRODIGY AND COMPUSERVE INDEED SOME COMPANIES COULD USE THE SYSTEM TO COMPETE WITH THESE SERVICES IN SUCH AREAS AS HOME SHOPPING BUT IT IS INITIALLY MORE LIKELY TO BE USED BY COMPANIES TO LET EMPLOYEES COLLABORATE ELECTRONICALLY AND SHARE DATA SUCH AS TEXT AND VIDEO WITH PARTNERS CUSTOMERS AND SUPPLIERS NO PRICING WAS ANNOUNCED FOR THE SERVICE THE TWO COMPANIES HAVE GRAND EXPECTATIONS ALEX MANDL AN AT&T EXECUTIVE VICE PRESIDENT SAID THE NEW SERVICE WILL BE TESTED LATER THIS YEAR AND WIDELY AVAILABLE NEXT YEAR AND SHOULD EVENTUALLY REACH THOUSANDS AND PERHAPS MILLIONS OF OUR CUSTOMERS INVESTORS CHEERED THE AGREEMENT LOTUS SHARES JUMPED FOLLOWING THE ANNOUNCEMENT TO CLOSE AT 8550 UP 575 IN HEAVY NASDAQ TRADING THE STOCK HAS GAINED 2550 SINCE THE TALKS WITH AT&T WERE DISCLOSED LAST MONTH LARGELY BECAUSE THEY FOCUSED ATTENTION ON NOTES WHICH HAS A CLEAR LEAD OVER COMPETING SOFTWARE MAKERS IN THE FASTGROWING FIELD OF NETWORKED COMPUTERS WHILE NOTES REMAINS A RELATIVELY SMALL PRODUCT FOR LOTUS RISING LAST YEAR TO ABOUT 10 OF TOTAL REVENUE OF 981 MILLION SALES ARE EXPECTED TO MORE THAN DOUBLE THIS YEAR THE VENTURE WILL FOCUS FIRST ON BUSINESSES PROVIDING SUCH SERVICES AS COMMUNICATIONS WITH SALESPEOPLE IN THE FIELD AND CREATING ELECTRONIC NETWORKS OF SUPPLIERS BUT TERENCE QUINN AN ANALYST AT FURMAN SELZ SAID THIS HAS HUGE IMPLICATIONS FOR RETAILING AND CONSUMERS BECAUSE IT WILL MAKE ONLINE SHOPPING SERVICES EASIER TO BUILD AND USE JIM P MANZI LOTUS'S CHIEF EXECUTIVE CALLED THE PLANNED SERVICE THE BUSINESS INTERNET REFERRING TO THE GLOBAL NETWORK ALREADY WIDELY USED BY INDIVIDUALS STUDENTS AND GOVERNMENT HE SAID THE COMPANY'S NOTES SOFTWARE WAS UNIQUELY SUITED TO CREATE SUCH A NETWORK BECAUSE OF ITS SECURITY AND INFORMATIONSHARING CAPABILITY LOTUS SAID IT PLANS TO DEVELOP A CLIENT OR LOWCOST DESKTOP VERSION OF NOTES TO CONNECT WITH AT&T NOTES SERVICES IT WILL ALSO BENEFIT FROM THE VENTURE BY RECEIVING A SHARE OF REVENUE GENERATED BY THE SERVICE EXECUTIVES WOULDN'T DISCUSS DETAILS OF THE AGREEMENT PEOPLE FAMILIAR WITH NEGOTIATIONS BETWEEN THE COMPANIES SAID THAT LOTUS'S SHARE OF CERTAIN FEES WOULD BE AS HIGH AS 125 BUT THIS COULDN'T BE CONFIRMED MR QUINN THE ANALYST SAID ANY SUCH RECURRING REVENUE STREAM DRAMATICALLY CHANGES THE FINANCIAL MODEL OF LOTUS FROM A SELLER OF PACKAGED SOFTWARE TO A SERVICE PROVIDER THE AGREEMENT WITH AT&T GIVES NOTES A MUCH HIGHER PROFILE AND LENGTHENS LOTUS'S LEAD OVER PROSPECTIVE COMPETITORS ESPECIALLY MICROSOFT CORP SAID PAUL JOHNSON AN ANALYST WITH FIRST BOSTON CORP ALMOST ANYTHING THEY MICROSOFT INTRODUCE IN THIS MARKET NOW IS TOO LITTLE TOO LATE HE SAID LOTUS'S LEAD IS LONG AND GETTING LONGER MICROSOFT HAS SAID IT PLANS TO INCLUDE SOME BASIC NOTES FEATURES IN A NEW RELEASE OF ITS WINDOWS OPERATING SOFTWARE DUE BY YEAR END AND INCLUDE MOREADVANCED FEATURES IN OTHER FORTHCOMING PRODUCTS INDUSTRY INSIDERS SAID MICROSOFT PUSHED HARD TO SIDELINE THE AT&TLOTUS AGREEMENT BUT AT&T'S MR MANDL SAID YESTERDAY HE ISN'T AWARE OF ANY SUCH EFFORTS AND MICROSOFT HAS PREVIOUSLY DENIED IT RICK SHERLUND AN ANALYST AT GOLDMAN SACHS & CO SAID HE THOUGHT EXPECTATIONS FOR THE AGREEMENT HAVE BECOME SOMEWHAT OVERBLOWN WHILE HE SAID LOTUS STOOD TO BENEFIT FROM THE REVENUESHARING ASPECT OF THE DEAL HE EXPECTED NO REVENUE THIS YEAR FROM IT AND ONLY A MODEST CONTRIBUTION IN 1995 HE ALSO SAID STIFF COMPETITION IS LIKELY DOWN THE ROAD THIS WILL BE JUST ONE LANE OF THE HIGHWAY 9403180111 940318 MORTGAGE CERTIFICATES TO BE SOLD BY FDIC WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP ANNOUNCED PLANS TO SELL UP TO 125 BILLION OF MORTGAGE PASSTHROUGH CERTIFICATES IN A PUBLIC OFFERING THE TRANSACTION WILL MARK THE FDIC'S FIRST SALE OF LOANS AS PART OF A TRANSACTION INVOLVING MORTGAGEBACKED SECURITIES THE FDIC SAID THE CERTIFICATES WILL EVIDENCE BENEFICIAL OWNERSHIP INTERESTS IN PERFORMING COMMERCIAL REAL ESTATESECURED LOANS WITH A BOOK VALUE OF UP TO 125 BILLION IT SAID THE COMMERCIAL MORTGAGE LOANS WERE ORIGINATED BY FAILED DEPOSITORY INSTITUTIONS NATIONWIDE THAT WERE INSURED BY THE BANK INSURANCE FUND THE CERTIFICATES ARE EXPECTED TO INCLUDE AN FDIC GUARANTY FOR A LIMITED AMOUNT OF CREDIT LOSSES AND INTERESTRATE RISK WITH SUBSEQUENT LOSSES BORNE BY THE HOLDERS OF THE SECURITIES THE FDIC SAID IT SAID THE OFFERING WILL BE MADE ONLY BY MEANS OF A PROSPECTUS 9403180110 940318 SPECTRUM FACES BIG CASH NEEDS TO STAY AHEAD COMPANY RAISING FUNDS FROM SHARE OFFERING BUT NO PROFIT IN SIGHT BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DESPITE THE BACKING OF PROMINENT INVESTORS SPECTRUM HOLOBYTE INC FACES HEFTY CASH NEEDS AS IT SEEKS TO MAINTAIN ITS STANDING AS ONE OF THE LEADING PROVIDERS OF ENTERTAINMENT SOFTWARE SPECTRUM NOW RAISING FUNDS FROM A PROPOSED TWO MILLION SHARE OFFERING SAYS IN ITS PROSPECTUS THAT IT MAY REQUIRE ADDITIONAL FINANCING TO REMAIN COMPETITIVE AND SPECTRUM ADDS IT CAN'T SAY WHETHER OR WHEN IT WILL BE PROFITABLE THE CLOSELY HELD CONCERN IN EFFECT WENT PUBLIC IN DECEMBER WHEN IT ACQUIRED THE PUBLICLY HELD COMPUTER GAMES SOFTWARE COMPANY MICROPROSE INC OF HUNT VALLEY MD THE COMBINED REVENUE OF BOTH COMPANIES NEARLY 60 MILLION IN FISCAL 1993 ARE MAINLY DERIVED FROM THE SALE OF ENTERTAINMENT SOFTWARE FOR USE ON PERSONAL COMPUTERS THE COMPANY ALSO SELLS VIDEOGAME CARTRIDGES USED IN SEGA AND NINTENDO MACHINES SPECTRUM HAS INTRODUCED MORE THAN 100 VIDEO GAMES FOR PERSONAL COMPUTERS AND SOLD MORE THAN 12 MILLION COPIES ITS MOST POPULAR PRODUCTS INCLUDE FLIGHT SIMULATIONS SUCH AS FALCON AND F15 STRIKEEAGLE PUZZLE GAMES SUCH AS TETRIS AND STRATEGY AND ACTION GAMES SUCH AS RAILROAD TYCOON AND SOLDIERS OF FORTUNE THE COMPANY THIS SPRING EXPECTS TO INTRODUCE ITS FIRST PRODUCTS BASED ON THE TV SERIES STAR TREK THE NEXT GENERATION THROUGH A LICENSE WITH PARAMOUNT PICTURES CORP AT CURRENT PRICES A TWO MILLION SHARE OFFERING WOULD RAISE ABOUT 19 MILLION FOR THE COMPANY WHICH WILL USE PROCEEDS TO FUND NEW SOFTWARE DEVELOPMENTS PAY OFF DEBT AND FOR OTHER BUSINESS PURPOSES ROBERTSON STEPHENS & CO AND PIPER JAFFRAY INC ARE THE UNDERWRITERS AFTER THE OFFERING THE COMPANY WILL HAVE ABOUT 19 MILLION SHARES OUTSTANDING THE SEC FILING SAYS THE COMPANY THINKS THAT PROCEEDS FROM THE OFFERING TOGETHER WITH CASH FROM OPERATIONS WILL BE SUFFICIENT TO MEET CASH NEEDS THROUGH THE END OF THE 1995 FISCAL YEAR BUT IT CAUTIONS THAT ADDITIONAL FINANCING MAY BE REQUIRED AND THAT FAILURE TO RAISE FINANCING MIGHT DELAY PRODUCT INTRODUCTIONS ADVERSELY AFFECTING THE COMPANY'S BUSINESS SPECTRUM'S STOCKHOLDERS INCLUDE AT&T VENTURES THE VENTURE CAPITAL ARM OF AMERICAN TELEPHONE & TELEGRAPH CO PARAMOUNT COMMUNICATIONS INC AND SOME VENTURE CAPITAL FIRMS FOR THE NINE MONTHS ENDED DEC 31 SPECTRUM POSTED A NET LOSS OF ABOUT 528 MILLION WHICH INCLUDES A ONETIME NONCASH CHARGE OF ABOUT 463 MILLION FOR CERTAIN WRITEOFFS RELATED TO THE ACQUISITION OF MICROPROSE SPECTRUM SAID ITS 1993 REVENUE WAS AFFECTED BY MICROPROSE'S CASH SHORTAGE DURING CALENDAR 1993 WHICH DECREASED THE NUMBER OF SOFTWARE TITLES THAT MICROPROSE COULD OFFER AND SHIP OUT YET A HOST OF PRESSURES COULD LEAD SPECTRUM TO SEEK ADDITIONAL CASH IN COMING MONTHS INCLUDING THE HIGH DEVELOPMENT COSTS OF SOFTWARE PRODUCTS AND THE SIGNIFICANT ADVANCE PAYMENTS REQUIRED FOR THE MANUFACTURE OF VIDEOGAME CARTRIDGES IN ADDITION WITH MAJOR ENTERTAINMENT CABLE AND TELECOMMUNICATIONS COMPANIES SWARMING INTO THE INTERACTIVE ENTERTAINMENT MARKET COMPETITIVE PRESSURES COULD INTENSIFY RESULTING IN SIGNIFICANT PRICE COMPETITION AND REDUCED PROFIT MARGINS SPECTRUM WARNS THE COMPANY HOPES TO COUNTER THE RISKS IT FACES BY EMPLOYING A THREEPRONGED STRATEGY TO AGGRESSIVELY DEVELOP SOFTWARE FOR NEXT GENERATION PLATFORMS WHICH FEATURE MORE LIFELIKE CHARACTERS AND REALISTIC GRAPHICS TYPICALLY IT TAKES SPECTRUM 10 TO 18 MONTHS TO COMPLETE A NEW SOFTWARE TITLE AND SIX TO 14 MONTHS TO DEVELOP EXISTING TITLES FOR DIFFERENT TECHNOLOGY PLATFORMS TO SEEK TO ACQUIRE ADDITIONAL SOFTWARE PROPERTIES DERIVED FROM MOVIES TELEVISION COMIC BOOKS AND OTHER SOURCES TO ENTER STRATEGIC RELATIONSHIPS WITH OTHER COMPANIES IN ORDER TO GROW SPECTRUM IS PARTLY BANKING ON A GROWING DEMAND FOR POWERFUL PERSONAL COMPUTERS THAT INCORPORATE CDROM TECHNOLOGY AND THAT ARE CAPABLE OF HIGHER SPEEDS AND IMPROVED GRAPHICS COMPUTER NETWORKS WHICH ENABLE SEVERAL PERSONAL COMPUTER USERS TO PLAY GAMES FROM DIFFERENT LOCATIONS ARE ALSO INCREASINGLY POPULAR BOTH THESE TRENDS SPECTRUM BELIEVES WILL ULTIMATELY LEAD TO INCREASED SALES OF BOTH PCS AND RELATED SOFTWARE 9403180109 940318 THE BUSINESS OF LAW NONREFUNDABLE FEES FOR LAWYERS BANNED BY NEW YORK'S TOP COURT BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL LAWYERS ARE PROHIBITED FROM CHARGING CLIENTS NONREFUNDABLE FEES FOR MOST KINDS OF WORK NEW YORK'S HIGHEST COURT SAID IN A GROUNDBREAKING RULING NO OTHER STATE'S HIGH COURT HAS SO STRAIGHTFORWARDLY PROHIBITED THE MOST COMMON TYPES OF NONREFUNDABLE FEES WHICH ARE PREVALENT IN CRIMINAL AND FAMILY LAW UNDER SUCH FEE ARRANGEMENTS AN ATTORNEY TYPICALLY WILL CHARGE A CLIENT THOUSANDS OF DOLLARS UP FRONT AND THEN KEEP THE MONEY EVEN IF THE CLIENT DECIDES TO DROP THE LITIGATION THE NEXT DAY IN THE CASE BEFORE THE INFLUENTIAL NEW YORK COURT ATTORNEY EDWARD M COOPERMAN OF GARDEN CITY NY TOOK UPFRONT RETAINER FEES RANGING FROM 5000 TO 15000 IN VARIOUS CRIMINAL AND ESTATE CASES THE CLIENTS DISCHARGED MR COOPERMAN BUT HE WOULDN'T GIVE BACK THE MONEY A DISCIPLINARY COMMITTEE SUSPENDED HIM FOR TWO YEARS AND THE HIGH COURT AFFIRMED THE DECISION IF SPECIAL NONREFUNDABLE RETAINERS ARE ALLOWED TO FLOURISH CLIENTS WOULD BE RELEGATED TO HOSTAGE STATUS IN AN UNWANTED FIDUCIARY RELATIONSHIP THE NEW YORK COURT SAID IN A RULING THAT WILL BE CLOSELY READ BY COURTS AND BAR ASSOCIATIONS AROUND THE COUNTRY NEW YORK HAS MORE THAN 60000 LAWYERS IN ITS STATE BAR ASSOCIATION AND THE STATE'S RULES FOR THEIR CONDUCT SOMETIMES SPILL OVER INTO OTHER STATES THE NEW YORK COURT SAID ITS RULING CAN BE APPLIED RETROACTIVELY MR COOPERMAN ARGUED THAT HE COMPLIED WITH ETHICS RULES IN EXISTENCE AT THE TIME THAT HE TOOK THE FEES BUT THE COURT RESPONDED THAT THE CONDUCT OF ATTORNEYS IS NOT MEASURED BY HOW CLOSE TO THE EDGE OF THIN ICE THEY SKATE CRIMINAL LAWYERS AND SOME BANKRUPTCY ATTORNEYS SAY THEY USE NONREFUNDABLE FEES AS A FORM OF INSURANCE JUST IN CASE CLIENTS DECIDE THEY CAN'T OR WON'T PAY THEIR BILLS MATRIMONIAL LAWYERS ACROSS THE COUNTRY SAY THE FEES PROTECT THEM BECAUSE CLIENTS ARE APT TO SWITCH LAWYERS OR RECONCILE WITH THEIR SPOUSES MIDWAY THROUGH A DIVORCE SOME CLIENTS EVEN BRIEFLY HIRE A HIGHPROFILE DIVORCE LAWYER JUST TO PREVENT THEIR SPOUSE FROM RETAINING THAT ATTORNEY ATTORNEYS AND ACADEMICS DIFFERED OVER THE SCOPE OF YESTERDAY'S RULING LESTER BRICKMAN AN ETHICS PROFESSOR AT YESHIVA UNIVERSITY IN NEW YORK WHOSE WRITINGS WERE CITED BY THE COURT SAID THE RULING IS MOMENTOUS BECAUSE IT PROHIBITS NONREFUNDABLE FEES OF ALL SORTS WITH THE LEGAL PROFESSION INCREASINGLY COMING INTO PUBLIC DISDAIN PROF BRICKMAN ADDED THE PRESSURE ON STATE SUPREME COURTS AROUND THE COUNTRY TO ADOPT THE OUTCOME THAT THE COURT OF APPEALS REACHED TODAY WILL BE OVERWHELMING BUT OTHERS INCLUDING STEPHEN GILLERS A LEGALETHICS PROFESSOR AT NEW YORK UNIVERSITY SAID THE RULING APPLIES ONLY TO FEE AGREEMENTS ABOUT VERY SPECIFIC LEGAL SERVICES IF THE LAWYER SAYS MY FEE IS 10000 FOR THIS APPEAL AND THAT IS NONREFUNDABLE' THAT IS NOT PERMITTED HE SAID BUT IF THE LAWYER SAYS MY FEE IS 10000 IN CASE OF A TAKEOVER ATTEMPT AND THAT IS NONREFUNDABLE' THAT WOULD BE PERMITTED PROF GILLERS SAID BECAUSE THE LAWYER IS BEING PAID TO BE AVAILABLE GENERALLY NOT FOR ANY SPECIFIC SERVICE STEVEN FINELL A MANHATTAN LAWYER WHO WROTE A BRIEF FOR THE HIGH COURT FROM THE NEW YORK STATE BAR ASSOCIATION SAID CRIMINAL LAWYERS SHOULD BE ABLE TO LIVE WITH THE COURT'S OPINION BY CHARGING A MINIMAL INITIAL FEE SUPPLEMENTED BY AN ADVANCE FOR FUTURE SERVICES BUT UNDER THE RULING THIS ADVANCE MUST BE REFUNDED IF THE LAWYER DOESN'T PERFORM THE ANTICIPATED WORK MR FINELL ADDED SEVERAL MONTHS AGO NEW YORK DIVORCE LAWYERS WERE BARRED BY THE STATE'S CHIEF JUDGE JUDITH KAYE FROM CHARGING NONREFUNDABLE FEES WHAT NEW YORK IS DOING IS PUTTING THE FAMILY LAWYERS OUT OF BUSINESS THEY REALLY ARE LAMENTED LYNNE Z GOLDBIKIN A NORRISTOWN PA DIVORCE LAWYER AND CHAIRELECT OF THE AMERICAN BAR ASSOCIATION FAMILYLAW SECTION JUDICIAL CANDIDATE CONTROVERSIAL CLINTON JUDICIAL NOMINEE ROSEMARY BARKETT CLEARED A HURDLE ON THE WAY TO A LIKELY CONFIRMATION THE SENATE JUDICIARY COMMITTEE APPROVED THE NOMINATION 117 WITH THE VOTING LARGELY ALONG PARTY LINES JUDGE BARKETT WHO WOULD SIT ON THE FEDERAL APPEALS COURT BASED IN ATLANTA IS THE CHIEF JUSTICE OF THE FLORIDA SUPREME COURT SOME REPUBLICANS HAVE ACCUSED HER OF INJECTING HER LIBERAL POLITICAL VIEWS INTO JUDICIAL DECISIONS ESPECIALLY IN DEATHPENALTY CASES THE NOMINATION NEXT GOES TO THE FULL SENATE WHICH ISN'T EXPECTED TO VOTE ON IT UNTIL NEXT MONTH AT THE EARLIEST NOTED THE FORMER SHEA & GOULD REALESTATE CHAIRMAN CHARLES A GOLDSTEIN IS MOVING FROM THE RECENTLY DISBANDED FIRM TO SUTHERLAND ASBILL & BRENNAN IN NEW YORK WHERE HE WILL HEAD ITS REALESTATE DEPARTMENT GOING WITH HIM ARE PARTNER ARNOLD S LEHMAN AND ONE ASSOCIATE 9403180108 940318 INTERNATIONAL WORLD ECONOMY US WANTS PIECE OF ASIAN ECONOMIC PIE BUT ITS POLICIES HAVE HALFBAKED QUALITY BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PACIFIC REGION IS CRITICAL TO AMERICA'S FUTURE SAYS SECRETARY OF STATE WARREN CHRISTOPHER OVER AND OVER AGAIN HE CALLS ITS DYNAMISM A POWERFUL ENGINE OF TRADE AND JOBS ESSENTIAL FOR CONTINUED US PROSPERITY THEN WHY DOES HE SPEND SO MUCH TIME QUARRELING WITH ITS THREE BIGGEST ECONOMIES THE ANSWER IS THAT THE CLINTON ADMINISTRATION REMAINS UNSURE ABOUT HOW TO DEAL WITH ASIA DESPITE A YEAR OR MORE OF PRACTICE SO ITS POLITICAL DEMANDS CLASH DIRECTLY WITH ECONOMIC HOPES AND THE PRESIDENT'S MEN AND WOMEN AREN'T SURE HOW TO SORT THEM OUT THE RESULT IS THAT FEW GOALS HAVE BEEN MET AND THINGS COULD GET MUCH WORSE BEFORE THE YEAR ENDS US GOVERNMENT POLICY TOWARD ASIA IS JUST NOT THOUGHT THROUGH COMPLAINS JAMES ABLEGGEN CHAIRMAN OF GEMINI CONSULTING JAPAN AND A PROFESSOR AT TOKYO'S SOPHIA UNIVERSITY IF WE'RE TRYING TO BUILD A PACIFIC COMMUNITY THIS IS A STRANGE WAY OF GOING ABOUT IT SAYS MORTON ABRAMOWITZ A FORMER AMBASSADOR TO THAILAND THIS SHOWS UP ESPECIALLY IN RELATIONS WITH JAPAN CHINA AND INDONESIA WHICH HAVE THE AREA'S LARGEST ECONOMIES AND ARE LEADING POLITICAL ACTORS IN EACH OF THEM THE US MAKES INTRUSIVE POLITICAL DEMANDS THAT ARE RESENTED FOR BOTH STYLE AND SUBSTANCE AND WHICH COULD DAMAGE FUTURE US INVOLVEMENT IN THIS ECONOMICALLY EXUBERANT REGION THE MAIN QUARRELS ARE WELLKNOWN WASHINGTON IS FED UP WITH JAPAN'S REFUSAL TO IMPORT FOREIGN GOODS AND INVESTMENT LIKE OTHER LEADING INDUSTRIAL STATES SO THE US THREATENS REPRISALS UNLESS TOKYO REFLATES DEREGULATES ABOLISHES TRADE BARRIERS AND OTHERWISE CHANGES IN WAYS WASHINGTON WOULD FIND INTOLERABLE IF IT WERE DEMANDED OF IT DESPITE SOME SPECIFIC GAINS OVERALL ECONOMIC TIES REMAIN IN SERIOUS DISREPAIR SAYS CHIEF TRADE NEGOTIATOR MICKEY KANTOR CHINA MEANWHILE REJECTS US DEMANDS THAT IT TREAT INTERNAL CRITICS WITH DECENCY SOMETHING ITS AGED AGGRESSIVELY INTOLERANT LEADERS CONSIDER FOOLISH AND DANGEROUS WHEN MR CHRISTOPHER TOOK HIS HUMAN RIGHTS MESSAGE TO BEIJING LAST WEEK THE CHINESE SPENT MUCH EFFORT HUMILIATING HIM BARRING A LATE COMPROMISE WHICH IS STILL POSSIBLE THERE COULD BE SEVERE ECONOMIC REPRISALS BY SUMMER IN INDONESIA THE PROBLEM IS LABOR RIGHTS THE AUTHORITARIAN SUHARTO REGIME OUTLAWS INDEPENDENT UNIONS BECAUSE SOME EARLIER ONES WERE POLITICAL TROUBLEMAKERS IT WANTS STABILITY ABOVE ALL SO JAKARTA HAS LET TROOPS SUPPRESS LOCAL STRIKES DESPITE US THREATS TO TAKE AWAY CERTAIN TARIFF PRIVILEGES UNLESS THIS STOPS HAVING FINESSED ONE DEADLINE WASHINGTON MUST DECIDE IN MIDAUGUST WHETHER TO ACT AND THEREBY PERHAPS SOUR A BASICALLY FRIENDLY RELATIONSHIP THERE'S ALSO A BIZARRE AND PRESUMABLY BRIEF QUARREL WITH SINGAPORE AS AN ASSERTION OF ITS ASIAN IDENTITY THAT RIGHTEOUS CITYSTATE INSISTS ON FLOGGING AN AMERICAN TEENAGER UNDER LAWS LEFT BEHIND BY BRITISH IMPERIALISTS WHO FOUNDED THE PLACE AMERICAN GOALS MAY BE NOBLE BUT ASIANS OFTEN FIND THE STYLE CONFRONTATIONAL AND ABRASIVE BECAUSE THIS OCCURS AS MANY LEADERS SEEK TO RESTORE OUR SENSE OF CONFIDENCE FAITH AND PRIDE IN OURSELVES AS A KUALA LUMPUR THINK TANK STATED RECENTLY THEY'RE INCLINED TO REJECT FOREIGN ADVICE ESPECIALLY IF IT SEEMS RISKY TO PERSONAL INTERESTS THUS SUCH DIVERSE OBSERVERS AS FORMER WHITE HOUSE ADVISER ZBIGNIEW BRZEZINSKI AND AMERICAN INTERNATIONAL GROUP CHAIRMAN HANK GREENBERG PREFER A MORE DISCREET ASIAN DIPLOMACY ESPECIALLY REGARDING CHINA YET WASHINGTON FINDS THAT DIFFICULT PARTLY BECAUSE ITS PRIORITIES AREN'T CLEAR FOR EXAMPLE DOES IT REALLY RANK QUITE LIMITED HUMANRIGHTS PROGRESS ABOVE THE HUGE CHINA MARKET PLUS BEIJING'S HELP ON NORTH KOREAN NUCLEAR MATTERS AND OTHER ARMSCONTROL ISSUES CRITICS SAY THIS IS BACKWARD WASHINGTON SHOULD DEVELOP THE JOINT INTERESTS FIRST THEN MOVE QUIETLY TO INTERNAL MATTERS WHICH DOESN'T AT ALL MEAN ABANDONING THEM THEY'D LIKE THE SAME SOFTER APPROACH TO INDONESIA SOME DON'T MIND THE JAPANBASHING HOPING IT MIGHT HALT TOKYO'S FRUSTRATING INTRANSIGENCE OVER TRADE BUT OTHERS FIND IT DANGEROUS TO BASIC SECURITY AND POLITICAL TIES AND THUS TO BUSINESS INTERESTS OVER THE LONG TERM THEY'D RATHER STOP THE SHOUTING AND SUPPORT JAPAN'S WEAK BUT REFORMMINDED GOVERNMENT THEY SAY THIS COULD SPEED INTERNAL CHANGES AND EVENTUALLY BRING THE COMMERCIAL RELIEF SOUGHT BY US AND OTHER FOREIGN COMPANIES YET POLICY CONFUSION IS IN THE WAY NOTES LINDA LIM AN ASIAN SPECIALIST AT THE UNIVERSITY OF MICHIGAN BUSINESS SCHOOL YOU'VE GOT TO BE CLEAR ABOUT WHAT YOU WANT TO DO AND THAT CLARITY SO FAR IS LACKING 9403180107 940318 AMR SAYS LOSS WILL BE WIDER THAN EXPECTED FIRST QUARTER'S FARE CUTS SNOWSTORMS ARE CITED FEBRUARY DEFICIT NOTED BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL AMR CORP SAID ITS FIRSTQUARTER LOSS WILL BE WIDER THAN WALL STREET ANALYSTS' ESTIMATES BECAUSE OF WINTER STORMS AND LAST MONTH'S FARE CUTS THE AMERICAN AIRLINES PARENT SAID THAT WALL STREET'S CONSENSUS ESTIMATE LOSS IS 24 CENTS A COMMON SHARE FOR THE 1993 FIRST QUARTER AMR HAD A NET LOSS OF 22 MILLION OR 43 CENTS A SHARE ON REVENUE OF 381 BILLION AMR MADE ITS ANNOUNCEMENT IN RESPONSE TO A REPORT IN YESTERDAY'S DALLAS MORNING NEWS THAT SAID THE COMPANY'S FIRSTQUARTER NET LOSS COULD EXCEED 100 MILLION THE NEWSPAPER ANONYMOUSLY QUOTED PILOTS WHO ATTENDED A WEDNESDAY MEETING WITH AMR'S CHAIRMAN AND CHIEF EXECUTIVE ROBERT L CRANDALL AT WHICH THEY WERE TOLD THE COMPANY HAD DEFICITS IN JANUARY AND FEBRUARY A SPOKESMAN FOR THE COMPANY SAID AMR HAD A NET LOSS FOR THE MONTH OF FEBRUARY OF 46 MILLION HE MADE NO COMMENT REGARDING JANUARY AND SAID THE COMPANY EXPECTS TO BE PROFITABLE IN MARCH AMR IS SCHEDULED TO RELEASE ITS RESULTS APRIL 20 THE FIRST QUARTER FOR AIRLINES TYPICALLY IS WEAK AS TRAFFIC DIPS AFTER CHRISTMAS AND DOESN'T PICK UP UNTIL SPRING AND SUMMER VACATIONS HOWEVER IT COULD BE WORSE THIS YEAR BECAUSE OF WEATHERRELATED PROBLEMS AND COMPETITION FROM LOWFARE STARTUP AIRLINES DELTA AIR LINES SAID LAST WEEK THAT REVENUE FOR THE CURRENT QUARTER WAS FALLING BELOW EXPECTATIONS BECAUSE OF WINTER STORMS AND CHEAP FARES SIMILARLY CONTINENTAL AIRLINES' CHIEF FINANCIAL OFFICER DANIEL GARTON SAID LAST MONTH THAT THE AIRLINE CANCELED 5 OF ITS FLIGHTS IN JANUARY BECAUSE OF SNOWSTORMS AND THAT WAS BEFORE A SERIES OF NEARWEEKLY NORTHEASTERN STORMS IN FEBRUARY THE FIRST QUARTER OF 1994 IS GOING TO BE WEAK HE WARNED USAIR GROUP INC EARLIER THIS MONTH BLAMED WINTER STORMS AND A NEW LOWFARE PROGRAM FOR A PROJECTED FIRSTQUARTER LOSS OF ABOUT 200 MILLION BEFORE TAXES MORE THAN TRIPLING ITS YEAREARLIER LOSS HEAVILY CONCENTRATED IN THE NORTHEAST USAIR SAID STORMS FORCED IT TO CANCEL FULLY 8 OF ITS FLIGHTS IN JANUARY AND FEBRUARY THE AMR SPOKESMAN DECLINED COMMENT ON THE DALLAS PAPER'S REPORT THAT AMR FINANCIAL OFFICIALS ARE PROJECTING A FULLYEAR PROFIT OF 150 MILLION THAT'S BELOW CURRENT ESTIMATES OF 423 A SHARE COMPILED BY FIRST CALL WHICH AVERAGES ESTIMATES OF 16 ANALYSTS BUT IT WOULD BE AMR'S FIRST ANNUAL PROFIT SINCE 1989 IN 1993 AMR HAD A NET LOSS OF 200 MILLION OR 266 A SHARE AMR'S STOCK FELL 1 A SHARE TO CLOSE AT 63 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AND THE DOW JONES TRANSPORTATION INDEX MOVED DOWN ENDING THE DAY AT 174753 AMERICAN'S MR CRANDALL WASN'T MEETING WITH PILOTS TO DISCUSS QUARTERLY RESULTS THE CHIEF EXECUTIVE WAS CONDUCTING A SERIES OF TALKS WITH PILOTS WHOSE CONTRACT IS UP FOR RENEGOTIATION LATER THIS YEAR ON AMERICAN'S NEED TO LOWER COSTS PARTICULARLY LABOR COSTS ACCORDING TO PUBLISHED REPORTS MR CRANDALL DISCUSSED CHANGING WORK RULES TO BOOST PILOT PRODUCTIVITY THEN USING THE SAVINGS TO REENTER MARKETS IT STOPPED FLYING TO LAST YEAR FOR THE 2000 OR SO PILOTS WHO WOULD BE FREED UP BY THE POSSIBLE CHANGES AMERICAN WOULD OFFER EARLY RETIREMENT TO SOME AND PROMOTIONS TO OTHERS BY ADDING PLANES TO ITS FLEET THE COMPANY EMPLOYS ABOUT 10000 PILOTS 9403180106 940318 SMALL STOCK FOCUS STOCKS POST NEW HIGHS IN BUSY BUYING AS RECENT SLUMP SEEMS TO BE RECEDING BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS POSTED NEW HIGHS IN A DAY OF SPIRITED BUYING TRADERS SAID SMALLER STOCKS APPEAR TO BE COMING OUT OF THEIR RECENT SLUMP AS INVESTORS SNAPPED UP SHARES ACROSS THE BOARD THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS GAINED 068 OR 02 TO 26979 JUST PAST ITS RECORD WEDNESDAY OF 26911 UNTIL WEDNESDAY THE RUSSELL INDEX'S PREVIOUS RECORD WAS 26762 SET FEB 2 NASDAQ STOCK MARKET ISSUES ALSO SOARED PAST THEIR RECORD CLIMBING 486 OR 06 TO 80385 TO SPRINT PAST THEIR JAN 31 RECORD OF 80047 ADVANCING NASDAQ ISSUES OUTPACED DECLINERS 1721 TO 1381 NASDAQ NATIONAL MARKET VOLUME WAS 276876400 SHARES DOWN FROM 292440300 WEDNESDAY TOTAL VOLUME FELL TO 324267000 SHARES FROM 338006000 WEDNESDAY IT'S DIFFICULT TO FIND SUPPLY BECAUSE NO ONE WANTS TO SELL I'M SEEING BUYING ACROSS THE BOARD SAID LANCE ZIPPER MANAGER OF NASDAQ TRADING AT KIDDER PEABODY & CO NO ONE IS PAYING THAT MUCH ATTENTION TO THE BOND MARKET PEOPLE ARE JUST CONCENTRATING ON STOCKS THE USUAL BOND MARKET JITTERS OVER A RETURN TO INFLATION WERE OVERCOME THE PAST TWO SESSIONS SAID PATRICK DAVIS MANAGER OF NASDAQ TRADING AT SALOMON BROTHERS THERE'S BEEN DECENT INFLATION NEWS MR DAVIS SAID REFERRING TO AN ECONOMIC REPORT FROM THE FEDERAL RESERVE BANK OF PHILADELPHIA THE FED SAID PRICES PAID BY MANUFACTURERS IN THE PHILADELPHIA REGION WERE DOWN THIS MONTH THE FED HAD REPORTED AN UNSETTLING PRICE INCREASE IN FEBRUARY SMALLER STOCKS HAD PAUSED TO BLOW OFF A LITTLE STEAM IN THE PAST SIX WEEKS SAID ALFRED GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS THAT MEANS STOCK PRICES HAVE PULLED BACK A BIT INSTEAD OF REACHING NEW HIGHS BUT THE NEW RECORDS IN THE PAST TWO TRADING SESSIONS SHOW THAT WE REMAIN IN A LONGTERM BULL MARKET MR GOLDMAN SAID MARKET PLAYERS ALSO SAID TODAY'S TRIPLEWITCHING SESSION DURING WHICH STOCK FUTURES AND OPTIONS EXPIRE WAS UNABLE TO MOVE STOCK PRICES LOWER THE DOW JONES INDUSTRIAL AVERAGE GAINED 1699 TO END AT 386514 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADVANCED 077 TO 26111 MANY OF THE NASDAQ ISSUES WERE BUOYED BY COMMUNICATIONS AND TECHNOLOGY ISSUES ESPECIALLY MERGER NEWS SUCH AS TUESDAY'S ANNOUNCEMENT FROM ADOBE SYSTEMS AND ALDUS LOTUS DEVELOPMENT THE CAMBRIDGE MASS MAKER OF APPLICATIONS SOFTWARE SHOT UP 5 3/4 TO 85 1/2 LOTUS AND AMERICAN TELEPHONE & TELEGRAPH HAVE A NEW NETWORKING PACT THAT WILL CREATE A TELECOMMUNICATIONS AND COMPUTER NETWORK CALLED AT&T NETWORK NOTES BASED ON LOTUS NOTES SOFTWARE COMPUWARE THE FARMINGTON HILLS MICH PROVIDER OF SYSTEMS SOFTWARE PRODUCTS AND DATA PROCESSING SERVICES JUMPED 6 1/8 TO 42 3/4 COMPUWARE SAID IT HAS AGREED TO BUY UNIFACE HOLDING BV FOR STOCK VALUED AT MORE THAN 245 MILLION UNIFACE BASED IN AMSTERDAM SELLS PROGRAMMING TOOLS TO HELP CUSTOMERS DEVELOP SOFTWARE TO RUN THEIR BUSINESSES LEARNING DIDN'T FARE AS WELL THE DEVELOPER OF EDUCATIONAL PERSONAL COMPUTER SOFTWARE FOR CHILDREN PLUMMETED 2 TO 16 3/4 AFTER IT SAID IT EXPECTS TO REPORT THIRDQUARTER OPERATING RESULTS BELOW EXPECTATIONS IN MIDAPRIL WALL STREET EXPECTS THE FREMONT CALIF COMPANY TO POST EIGHT CENTS A SHARE IN FOCUS SYSTEMS THE TUALATIN ORE MAKER OF INFORMATION DISPLAY PRODUCTS FELL 3 3/4 TO 10 3/4 AFTER IT SAID IT WILL MAKE ADDITIONAL INVESTMENTS OF 15 MILLION TO 35 MILLION IN MOTIF INC ITS DISPLAY TECHNOLOGY JOINT VENTURE WITH MOTOROLA HOWEVER SOFTWARE TOOLWORKS WAS A HIGHFLIER ON RENEWED INVESTOR INTEREST IN THE MULTIMEDIA SOFTWARE INDUSTRY THE STOCK JUMPED 1 5/8 TO 11 7/8 IN EARNINGS NEWS NORTON MCNAUGHTON THE NEW YORK CLOTHING RETAILER ROSE 1 3/4 TO 19 5/8 AFTER REPORTING FIRSTQUARTER EARNINGS OF 12 CENTS A SHARE COMPARED WITH A LOSS OF SEVEN CENTS IN THE YEARAGO PERIOD LINDSAY MANUFACTURING SOARED 2 3/4 TO 35 3/4 THE LINDSAY NEB MAKER OF IRRIGATION SYSTEMS POSTED SECONDQUARTER EARNINGS OF 56 CENTS A SHARE COMPARED WITH 46 CENTS IN THE YEARAGO QUARTER LINDSAY SAID ITS ORDER BACKLOG WAS 34 MILLION AT THE END OF THE SECOND QUARTER UP FROM 183 MILLION THE SAME TIME LAST YEAR SEVERAL ISSUES MOVED ON BROKERAGE HOUSE INVESTMENT RATING CHANGES TJ INTERNATIONAL GAINED 2 TO 26 3/4 LEHMAN BROTHERS UPGRADED THE BOISE IDAHO BUILDING MATERIALS COMPANY TO BUY FROM OUTPERFORM BUCKLE CLIMBED 1 3/4 TO 20 SMITH BARNEY SHEARSON BEGAN INVESTMENT COVERAGE OF THE KEARNEY NEB APPAREL RETAILER WITH A BUY RATING ON THE AMERICAN STOCK EXCHANGE TRADING HAS BEEN HALTED IN WILSHIRE TECHNOLOGIES UNTIL THE CARLSBAD CALIF COMPANY RESTATES ITS FISCAL 1993 FINANCIAL RESULTS THE EXCHANGE SAID WILSHIRE WHICH MARKETS DISPOSABLE PRODUCTS FOR MEDICAL AND CLEANROOM USE SAID IT WILL RESTATE ITS RESULTS FROM THE YEAR ENDED NOV 30 FROM A 2 MILLION PROFIT OR 54 CENTS A SHARE TO A SUBSTANTIAL LOSS LAST MONTH WILSHIRE ISSUED A STATEMENT IN WHICH IT DISPUTED A CONTENTION BY JERRY MELIN AN ANALYST AT GERARD KLAUER MATTISON IN NEW YORK THAT WILSHIRE'S FINANCIAL RESULTS INCLUDED FICTITIOUS REVENUE AND EARNINGS THAT WOULD BE REVERSED BY ITS INDEPENDENT AUDITORS WE'RE CONFIDENT OUR ANALYSIS WAS AND IS CORRECT MR MELIN SAID YESTERDAY THEIR PROSPECTS FOR SIGNIFICANT PROFITABILITY REMAIN VERY DIM 9403180105 940318 COMPUTERS THE GENDER DIVIDE NOW WOMEN IN CYBERSPACE CAN BE THEMSELVES BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL CARYN BROOKS GOT A RUDE WELCOME WHEN SHE SIGNED ON TO HER FIRST ONLINE SERVICE IN JANUARY AFTER JUST A FEW MINUTES IN AN AMERICA ONLINE CONFERENCE ON LITERATURE MALE SUBSCRIBERS FLASHED HER MESSAGES LIKE ARE YOU HOT AND WHAT DO YOU LOOK LIKE I WROTE FRANTICALLY TO A FRIEND AND HE SAID THAT HAPPENS BECAUSE YOU HAVE A WOMAN'S NAME' SAYS MS BROOKS A BERKELEY CALIF COMMUNICATIONS CONSULTANT FOR COMPANIES THAT ARE RESTRUCTURING WOMEN ARE FINDING THAT BEING FEMALE IN THE ETHER CAN BE LIKE WEARING A BIKINI TO A MONSTER TRUCK SHOW SEARCHING FOR CONVERSATION ON LITERATURE AND POLITICS THEY INSTEAD FIND THEMSELVES FENDING OFF MEN WHO ASSUME THEY ARE AIRHEADS OR BOMBARD THEM WITH REQUESTS FOR PHONE SEX WHEN THEY AREN'T BEING ATTACKED FOR THEIR GENDER WOMEN MUST TIPTOE DELICATELY THROUGH FLAME WARS IN WHICH MEN AND SOME WOMEN ATTACK AND EVEN THREATEN TO KILL EACH OTHER OVER POLITICS OR POOR GRAMMAR THE FLAMES ARE MEANT TO BE FUN BUT THEY CAN ESCALATE QUICKLY AS MOSTLY MALE SUBSCRIBERS PROTECTED BY ANONYMOUS NAMES LIKE MR HAPPY AND BOZO TAKE ADVANTAGE OF THE CHANCE TO VENT WITHOUT FEAR OF RETRIBUTION IT'S LIKE WARFARE INSTEAD OF HAVING TO FACE YOUR ENEMY AND PULL A SWORD YOU COORDINATE CROSS HAIRS ON YOUR BOMB SITE SAYS TERRY WINOGRAD A BOARD MEMBER OF COMPUTER PROFESSIONALS FOR SOCIAL RESPONSIBILITY YOU LOSE RESTRAINT TO FIND A KINDER GENTLER FORUM FOR SWAPPING IDEAS MORE WOMEN ARE SIGNING ON TO ONLINE SERVICES DESIGNED ESPECIALLY FOR THEM WOMEN'S WIRE OF SAN FRANCISCO WHICH STARTED IN JANUARY SAYS AT LEAST 90 OF ITS 700 SUBSCRIBERS ARE FEMALE COMPARED WITH INDUSTRY ESTIMATES OF JUST 10 ON MOST ONLINE SERVICES IF WOMEN WHO USE ACCOUNTS OF MALE FRIENDS ARE COUNTED ABOUT 35 OF ONLINE USERS ARE WOMEN ACCORDING TO MARKET RESEARCH FIRM LINK RESOURCES NY ANOTHER SERVICE ECHO COMMUNICATIONS GROUP INC'S ECHO EAST COAST HANG OUT OF NEW YORK SAYS ABOUT 40 OF ITS MORE THAN 2000 SUBSCRIBERS ARE FEMALE IN ADDITION TO BULLETIN BOARDS ON GENERAL TOPICS LIKE POLITICS AND CULTURE ECHO OFFERS THREE CONFERENCES FOR WOMEN ONLY ONE FOR MEN ONLY ONE FOR THOSE UNDER AGE 30 AND ONE FOR THOSE OVER AGE 40 THE MAIN WOMENONLY CONFERENCE WOMEN IN TELECOMMUNICATIONS IS ECHO'S SIXTH MOST POPULAR BULLETIN BOARD WHILE THE MEN'S CONFERENCE RATES SOMEWHERE BELOW THE TOP 10 TECHNICALLY EITHER SEX CAN CROSSDRESS BY ASSUMING A NAME OF THE OPPOSITE SEX BUT THERE ARE HURDLES TO GET INTO A WOMENONLY CONFERENCE ON ECHO A SUBSCRIBER SENDS EMAIL TO THE HOST STACY HORN WHO IS ALSO ECHO'S FOUNDER AND PRESIDENT MS HORN PHONES TO VERIFY GENDER AND THEN ADDS THE SUBSCRIBER TO THE ACCESS LIST SHE CONCEDES THAT SHE DOESN'T DO VOICEVERIFICATION FOR MEN IN THE MEN'S CONFERENCE BUT SAYS SHE FIGURES THAT MEN ARE MORE LIKELY TO TRY TO CRASH THE WOMEN'S CONFERENCES THE WOMENONLY BULLETIN BOARDS OFFER A PLACE TO DISCUSS SUCH SENSITIVE TOPICS AS BREAST CANCER ABORTION PREGNANCY DAYCARE AND WORKING MOTHERHOOD WITHOUT FEAR OF MALE SUBSCRIBERS CRUISING THROUGH AND TYPING IN OFFENSIVE SALVOS WOMEN CAN ALSO SIGN ON TO CONFERENCES HOSTED BY PROFESSIONALS TO GET ADVICE ON EVERYTHING FROM MEDICAL PROBLEMS TO CAR REPAIR AND WOMEN'S WIRE OFFERS DOCUMENTS RELATED TO WOMEN'S HEALTH ISSUES AND DAILY NEWS ARTICLES ON WOMEN'S ISSUES SOME WOMEN USE THE SERVICES WHEN NO FRIEND IS AROUND TO TAKE A PHONE CALL ERIKA LOCKHART OF SAN FRANCISCO RECENTLY SIGNED ON TO A WOMEN'S WIRE CONVERSATION ABOUT BAD DAYS AND TOLD ABOUT AN UNPLEASANT CONVERSATION SHE'D JUST HAD WITH A ROOMMATE SHE HAD EVICTED I WOULDN'T CALL UP A FRIEND TO TELL THEM SOMETHING LIKE THAT DURING THE DAY BECAUSE IF THEY'RE AT WORK THEY'RE WORKING MS LOCKHART SAYS IF I POST IT IT'S OUT THERE YOU TALK TO A WHOLE BUNCH OF PEOPLE AT ONCE THAT WAY OTHER WOMEN USE THE SERVICES FOR EMOTIONAL SUPPORT DURING TRYING EXPERIENCES LIKE CHILDBIRTH BETSY RICHTER THE MANAGER OF ONLINE SERVICES FOR NEW YORK'S VILLAGE VOICE ANNOUNCED HER FIRST PREGNANCY IN THE WOMEN'S ONLY SECTION OF ECHO AND POSTED AN ANNOUNCEMENT THAT HER WATER HAD BROKEN BEFORE SHE HEADED TO THE HOSPITAL THAT NIGHT HER HUSBAND LOGGED IN WITH HER PASSWORD TO POST THE BABY'S SIZE AND WEIGHT FOR THE NEXT 12 WEEKS MS RICHTER STAYED HOME WITH THE BABY RECOVERING FROM A CAESAREAN SECTION MISSING SOCIAL CONTACT WITH COLLEAGUES AT WORK SHE LOGGED ON FOR SUPPORT THE WOMEN OF ECHO TAPPED IN THEIR OWN BIRTH EXPERIENCES AND ANSWERED HER QUESTIONS ABOUT DIAPER RASH MS RICHTER SAYS SHE WOULDN'T HAVE TRIED TO HAVE THIS DISCUSSION IN THE PUBLIC SECTION OF ECHO IT WOULD HAVE DEGENERATED INTO SNICKERING SHE SAYS A TELEVISION PRODUCER IN NEW YORK HAS USED THE WOMEN'S ONLY SECTION OF ECHO TO DISCUSS AN AFFAIR SHE'S HAVING SHE FIGURED HER FRIENDS WOULD PROBABLY TELL HER ONLY WHAT SHE WANTED TO HEAR BUT THE WOMEN ON ECHO MIGHT BE MORE BLUNT THEY WERE SHE SAYS BUT SHE DIDN'T FOLLOW THEIR ADVICE IF ANYTHING WOMEN COMPLAIN THAT ONLINE SERVICES FOR WOMEN ARE TOO NICE AT ECHO IT TOOK A LONG TIME FOR ANYONE TO EVER DISAGREE WITH EACH OTHER THERE WAS ALL THIS NICENESS THE NEW YORK TV PRODUCER SAYS THAT IS PARTLY A FUNCTION OF THE SERVICES' SMALL SIZE AND THEIR GEOGRAPHY ECHO AND WOMEN'S WIRE MEMBERS ARE CONCENTRATED IN REGIONS NEW YORK AND SAN FRANCISCO RESPECTIVELY THAT ALLOW THEM TO GET TOGETHER FOR FACETOFACE SOCIALS ONCE THEY'VE SEEN EACH OTHER MEMBERS ARE LESS LIKELY TO FLAME EACH OTHER ONLINE THE WOMEN WHO RUN THE SERVICES ALSO TRY TO DISCOURAGE OFFENSIVE BEHAVIOR LIKE PERSONAL ATTACKS OR UNWANTED SEXUAL TALK ECHO'S MS HORN SAYS SHE SOMETIMES SENDS PRIVATE MESSAGES TO PEOPLE AFTER RECEIVING SEVERAL COMPLAINTS ABOUT THEM IT'S USUALLY A MISUNDERSTANDING SHE SAYS BUT THREE TIMES IN THREE YEARS SHE HAS KICKED MEN OFF ECHO FOR PERSISTING IN OFFENSIVE BEHAVIOR SUCH AS SENDING HARASSING EMAIL TO INDIVIDUAL SUBSCRIBERS MEN WHO USE ECHO'S MO OR MENONLY BULLETIN BOARD SAY THEY'RE NOT SEXIST THEY JUST LIKE HAVING THEIR OWN SPACE CHRIS WELLER AN UNEMPLOYED SOFTWARE PROGRAMMER WHO MET HIS GIRLFRIEND OF SIX MONTHS ON ECHO SAYS THE CONFERENCE IS FAIRLY CLOSE TO HANGING OUT AT A BAR THE MEN TALK ABOUT GUNS THEIR FATHERS WOMEN AND THE PROPER ETIQUETTE FOR ASKING AN ECHOID WOMAN OUT ON A DATE GENERALLY HE SAYS THEY'RE VERY RESPECTFUL TOWARD WOMEN BUT AT THE SAME TIME WE DON'T HAVE TO BE SO PC WHEN WE SPEAK MR WELLER ADDS THAT HE ONCE SIGNED ON TO AMERICA ONLINE UNDER A WOMAN'S NAME FOR FUN AND WAS BOMBARDED WITH MEN ASKING WHAT HE LOOKED LIKE IT WAS A REAL EYE OPENER HE SAYS MEN WHO SIGN ON TO WOMEN'S ONLINE SERVICES SAY THEY OBJECT TO THE LOCKERROOM ATMOSPHERE ON MAINSTREAM SERVICES MAXWELL HOFFMAN SAYS HE SIGNED ON TO WOMEN'S WIRE BECAUSE HE FELT THAT WOMEN'S VOICES WERE ABSENT ON THE INTERNET THE SERVICE IS A GOOD PLACE TO BE REMINDED OF WHAT WOMEN GO THROUGH HE WROTE IN A RECENT POSTING 9403180104 940318 WHO'S NEWS PDA ENGINEERING PDA ENGINEERING COSTA MESA CALIF THOMAS C CURRY PRESIDENT WAS ELECTED A DIRECTOR INCREASING THE BOARD TO EIGHT MEMBERS MR CURRY 49 YEARS OLD HAD BEEN PROMOTED FROM VICE PRESIDENT AND GENERAL MANAGER OF THE SOFTWARE PRODUCTS DIVISION TO HIS CURRENT POST IN JANUARY PDA PROVIDES ADVANCEDTECHNOLOGY PRODUCTS AND SPECIALIZED ENGINEERING SERVICES 9403180102 940318 HEARD ON THE STREET CONRAD BLACK'S HOLLINGER IS TRADING AT PRICES THAT SOME ANALYSTS SAY ARE TEMPTINGLY LOW BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ONE OF CANADA'S MOST OVERLOOKED PUBLIC COMPANIES IS CONTROLLED BY ONE OF ITS MOST HIGHPROFILE CITIZENS PRESS BARON CONRAD BLACK THE COMPANY IN QUESTION IS HOLLINGER WHICH IS 45OWNED BY MR BLACK AND IS TRADING AT TEMPTINGLY CHEAP LEVELS RIGHT NOW ANALYSTS SAY MR BLACK'S HOLDING COMPANY HAS BEEN MAKING HEADLINES AROUND THE WORLD THANKS TO NEWSPAPER ACQUISITIONS SUCH AS THE RECENTLY PROPOSED PURCHASE OF THE CHICAGO SUNTIMES AND SUCCESSES SUCH AS THE TURNAROUND OF BRITAIN'S PRESTIGIOUS DAILY TELEGRAPH BUT THE STOCK HASN'T KEPT PACE EVEN HOLLINGER'S 89 MILLIONSHARE STAKE IN LONDON'S DAILY TELEGRAPH CURRENTLY HAS A MARKET VALUE HIGHER THAN HOLLINGER ITSELF ABOUT 526 MILLION 107 BILLION CANADIAN DOLLARS FOR THE STAKE COMPARED WITH HOLLINGER'S MARKET VALUE OF C868 MILLION THIS STATE OF AFFAIRS HAS ANALYSTS SHAKING THEIR HEADS HOW CAN HOLLINGER BE TRADING AT ONLY 15 1/2 CANADIAN IN TORONTO AND 11 1/4 US ON THE NASDAQ STOCK MARKET THIS MEANS YOU BUY THE TELEGRAPH DIRT CHEAP THEN GET EVERYTHING ELSE AS A BONUS SAYS MARIANNE GODWIN ANALYST AT BBN JAMES CAPEL INC IN TORONTO AND THESE ARE GOODQUALITY ASSETS WITH SOLID GROWTH PROSPECTS HOLLINGER HAS ABOUT 140 US NEWSPAPERS TWO CANADIAN NEWSPAPER CHAINS 99 OF THE JERUSALEM POST AND 935 OF THE PUBLICLY TRADED PRINTER AND PUBLISHER SOUTHAM WHY IS HOLLINGER STOCK ON THE ROPES HOLLINGER'S COMPLEX WEB OF HOLDINGS IN NORTH AMERICA EUROPE AND AUSTRALIA CAN BE TOUGH FOR ANALYSTS TO TRACK MOREOVER HOLLINGER'S DEBT IS HIGH STANDARD & POOR'S RECENTLY SAID IT MIGHT DOWNGRADE HOLLINGER'S DOUBLEB SUBORDINATEDDEBT RATING BECAUSE OF THE PROPOSED SUNTIMES ACQUISITION THE MOVE WOULD AFFECT ABOUT C220 MILLION US170 MILLION OF DEBT BULLS SAY THE SKEPTICS ARE OVERLOOKING THE ABILITY OF MR BLACK AND HOLLINGER TO CUT COSTS AND BOOST PROFIT MARGINS AT NEWSPAPERS THEY ACQUIRE THE PRIME EXAMPLE IS THE DAILY TELEGRAPH ONCE A STRUGGLING PAPER WITH DECLINING READERSHIP IT'S NOW A FLOURISHING ENTERPRISE VALUED AT SOME C16 BILLION EVEN THE TINY US NEWSPAPERS HAVE SEEN THEIR PRETAX PROFIT MARGINS EXPAND SINCE BEING BOUGHT BY HOLLINGER'S US UNIT AMERICAN PUBLISHING FOR INSTANCE NEWSPAPERS THE UNIT ACQUIRED IN 1991 HAD AN AVERAGE PRETAX MARGIN OF 14 A RETURN THAT HAD JUMPED TO 26 BY 1993 ONE OF THE BIGGEST PROBLEMS HOLLINGER HAS HAD IN THE FINANCIAL MARKETS HAS BEEN EDUCATING INVESTORS ON HOW TO VALUE THEIR ASSETS SAYS ANDREW MCCREATH AN ANALYST WITH GORDON CAPITAL IN TORONTO THEY'VE GOT ASSETS IN SEVERAL DIFFERENT COUNTRIES REPORTING RESULTS IN SEVERAL DIFFERENT CURRENCIES AND THEN THERE ARE CONVERTIBLE SECURITIES OUT THERE WHICH COULD DILUTE EXISTING SHAREHOLDERS BARGAINHUNTERS AREN'T DETERRED THIS IS VERY VERY CHEAP SAYS FRANK MERSCH WHO RUNS THE FLAGSHIP STOCK FUND FOR TORONTO'S ALTAMIRA MANAGEMENT HE VALUES HOLLINGER'S ASSETS AT C19 TO C20 A SHARE HE ADMIRES MR BLACK'S ABILITY TO GET STRONGER PERFORMANCE FROM ASSETS BOUGHT CHEAPLY AND FIGURES HE CAN DO THE SAME WITH THE CHICAGO SUNTIMES TO CATCH INVESTORS' EYES THE COMPANY RECENTLY HATCHED PLANS TO OFFER THE PUBLIC STAKES IN AMERICAN PUBLISHING AND ONE OF ITS TWO CANADIAN PUBLISHING CHAINS UNIMEDIA THE UNIMEDIA IPO OF A 30 STAKE IS ALREADY LAUNCHED THE AMERICAN PUBLISHING OFFERING OF 32 HAS BEEN DELAYED FOR A NEW PROSPECTUS INCLUDING THE CHICAGO SUNTIMES THE NEW US NEWSPAPER FLAGSHIP WITHIN AMERICAN PUBLISHING COULD DRAW INSTITUTIONAL ATTENTION TO THE STOCK ANALYSTS SAY AND BOOST THE OFFERING SIZE SHARPLY MS GODWIN EXPECTS THE TWO IPOS WILL BUOY THE STOCK TOWARD WHAT SHE FEELS IS A CONSERVATIVE SHORTTERM TARGET OF C17 A SHARE GIVING PEOPLE A MARKET VALUE FOR TWO MORE OF ITS MAIN ASSETS WILL HELP CONSIDERABLY SHE SAYS SHE ADDS THAT LAST YEAR'S EARNINGS SETBACK OWED MUCH TO EXCHANGERATE ZIGZAGS AND ONETIME ACQUISITION COSTS NET INCOME WAS C314 MILLION IN 1991 AND MORE THAN DOUBLED TO C74 MILLION IN 1992 BUT COSTS OF ACQUIRING THE SOUTHAM STAKE AND UNUSUAL ITEMS HELD 1993 PROFIT TO C253 MILLION HOLLINGER SAYS EARNINGS BEFORE UNUSUAL ITEMS AND THE COSTS ASSOCIATED WITH ACQUIRING ITS STAKE IN SOUTHAM ACTUALLY ROSE TO C456 MILLION FROM C446 MILLION THE COMPANY HAS SHOWN PRETTY CONSISTENT GROWTH IN REVENUES AND CASH FLOW SAYS MR MCCREATH I SEE THE CURRENT SITUATION AS A WINDOW OF OPPORTUNITY FOR INVESTORS C101 A SHARE DILUTED 9403180101 940318 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IVI PUBLISHING INC AN OFFERING OF 15 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 225000 ADDITIONAL SHARES VIA INVEMED ASSOCIATES INC MEN'S WEARHOUSE INC A PROPOSED OFFERING OF ONE MILLION COMMON SHARES VIA BEAR STEARNS & CO MONTGOMERY SECURITIES AND ROBERTSON STEPHENS & CO METROTRANS CORP AN INITIAL OFFERING OF 15 MILLION COMMON SHARES VIA INTERSTATE/JOHNSON LANE CORP SHERRITT INC AN OFFERING OF 200 MILLION OF DEBT SECURITIES INCLUDING 100 MILLION OF DEBENTURES DUE 2014 AND C135 MILLION OF NOTES DUE 2004 VIA GOLDMAN SACHS & CO 9403180100 940318 GM'S SATURN CUTS OUTPUT SLOWS PLAN FOR SECOND PLANT BY JOSEPH B WHITE AND ANDREA PUCHALSKY STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT SADDLED WITH A 91DAY SUPPLY OF UNSOLD CARS GENERAL MOTORS CORP'S SATURN SMALLCAR SUBSIDIARY IS CUTTING DAILY PRODUCTION 27 AND SLOWING ITS PLANS FOR A SECOND PLANT THE PRODUCTION CUT AND THE DELAY IN EXPANSION PLANS MARK THE LATEST IN A SERIES OF SETBACKS FOR SATURN GM'S HEAVILY PROMOTED 5 BILLION EFFORT TO ROLL BACK GAINS IN THE US BY JAPANESE SMALL CARS SINCE LAST OCTOBER SATURN'S MONTHLY SALES HAVE RUN AN AVERAGE OF ABOUT 30 BEHIND MONTHLY PRODUCTION FEBRUARY SALES OF 16865 SATURNS WERE FLAT WITH YEAREARLIER LEVELS DESPITE A WIDELY ADVERTISED LEASE DEAL AT CURRENT LEVELS SATURN SALES ARE ON TRACK TO FALL SHORT OF 300000 A YEAR EVEN BEFORE FULL AVAILABILITY OF NEW RIVALS INCLUDING THE DODGE NEON AND THE REDESIGNED CHEVROLET CAVALIER SATURN'S MANAGERS NOW HAVE NO DATE TO SEEK APPROVAL FOR A SECOND FACTORY FROM GM PRESIDENT JOHN F SMITH JR OR GM'S DIRECTORS A SATURN SPOKESMAN SAID ONLY LAST JANUARY SATURN OFFICIALS PAID BONUSES TO WORKERS IN HONOR OF A SLIM QUALIFIED PROFIT FOR 1993 AND WILLIAM E HOGLUND GM EXECUTIVE VICE PRESIDENT DECLARED GM COULD DECIDE BY EARLY MARCH TO BUILD A SECOND SATURN PLANT THAT BOOSTED CAPACITY TO AS MUCH AS 500000 SATURNS A YEAR FROM 322000 BUT NOW SATURN'S GOAL IS TO SHRINK ITS BACKLOG OF UNSOLD CARS BY ONETHIRD TO A 61DAY SUPPLY BY THE END OF THIS MONTH TO DO THAT SATURN ON WEDNESDAY CUT ITS DAILY PRODUCTION TO 800 CARS FROM 1100 CARS SATURN'S 6600 PRODUCTION WORKERS WILL CONTINUE TO GET FULL WAGES EVEN THOUGH THEIR DAILY WORK TURNS WILL BE REDUCED TO ABOUT SEVEN HOURS FROM THE NORMAL 10 SATURN PRODUCTION EMPLOYEES WORK FOUR 10HOUR SHIFTS A WEEK A SATURN SPOKESMAN SAID YESTERDAY THAT PLANNING FOR A SECOND FACTORY IS CONTINUING BUT ACKNOWLEDGED SATURN HASN'T DECIDED WHETHER TO SEEK THE FULL 500000 VEHICLESAYEAR CAPACITY IT ONCE WANTED MEANWHILE SATURN EXPECTS SALES TO INCREASE AS THE NUMBER OF US SATURN DEALERS GROWS THIS YEAR TO 360 FROM 283 NOW AND EXPORTS INCREASE SATURN ALSO LAID BLAME FOR ITS PROBLEMS ON BAD WEATHER AND A SHORTAGE OF RAILROAD VEHICLE CARRIERS THAT HAS HAMPERED SHIPMENTS THROUGHOUT THE AUTO INDUSTRY THIS WINTER ALTOGETHER THE US AUTO MAKERS SAID THEY PLAN TO BUILD 258469 CARS AND TRUCKS THIS WEEK UP 128 FROM THE 229194 VEHICLES BUILT IN THE SAME WEEK LAST YEAR IN FEBRUARY THE AUTO MAKERS BUILT 1033575 CARS AND TRUCKS AN INCREASE OF 185 FROM 872248 VEHICLES BUILT A YEAR EARLIER SEPARATELY PARTS SHORTAGES CREATED BY A FOURDAY STRIKE AT TWO GM BRAKE PLANTS IN DAYTON OHIO IDLED FOUR MORE ASSEMBLY PLANTS YESTERDAY IN TOTAL THE STRIKE IDLED SEVEN ASSEMBLY PLANTS AND 19790 WORKERS ANALYST STEPHEN GIRSKY OF PAINEWEBBER INC ESTIMATED THE LOST PRODUCTION COST GM ABOUT 50 MILLION IN PRETAX EARNINGS SOME OF WHICH IT CAN MAKE UP LATER THE STRIKE ENDED YESTERDAY AS THE 3000 STRIKING WORKERS AT DAYTON RATIFIED A NEW LOCAL LABOR AGREEMENT WORK RESUMED WITH THE AFTERNOON SHIFT 9403180099 940318 WISCONSIN PENSION FUND IS ACTIVIST HAWK BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL THE 80 BILLION CALIFORNIA PUBLIC EMPLOYEE RETIREMENT SYSTEM MAY BE THE BESTKNOWN PENSION ACTIVIST BUT THE 35 BILLION WISCONSIN RETIREMENT FUND HAS EMERGED TO RIVAL CALPERS AS THE BIGGEST HAWK IN THE MOVEMENT WHILE CALPERS RELIES HEAVILY ON IRONING OUT DIFFERENCES WITH COMPANIES IN CLOSEDDOOR MEETINGS THE STATE OF WISCONSIN INVESTMENT BOARD WAGED LOWBUDGET PROXY FIGHTS LAST YEAR AGAINST SEVEN COMPANIES IT CONTENDS HAVE TREATED SHAREHOLDERS BADLY TAKING ADVANTAGE OF RECENTLY LIBERALIZED RULES GOVERNING COMMUNICATIONS AMONG SHAREHOLDERS WISCONSIN WON FOUR OF THE SEVEN PROXY CONTESTS BELIEVED TO BE THE BEST BATTING AVERAGE OF ANY ACTIVIST THEY ARE THE CUTTINGEDGE FUND SAYS SARAH TESLIK EXECUTIVE DIRECTOR OF THE COUNCIL OF INSTITUTIONAL INVESTORS A GROUP THAT PROMOTES SHAREHOLDER ACTIVISM WISCONSIN IS WHERE THE INTELLECTUAL VIGOR IS SOME EXAMPLES OF WISCONSIN'S FEISTINESS WISCONSIN WAS ONE OF THE FIRST INVESTORS TO ATTACK PARAMOUNT COMMUNICATIONS INC FOR WHAT IT CONSIDERED POOR FINANCIAL PERFORMANCE LEADING A PROXY CAMPAIGN LAST YEAR AGAINST DIRECTORS NOMINATED TO PARAMOUNT'S COMPENSATION COMMITTEE DESPITE HOLDING A MERE 100000 SHARES WISCONSIN FAXED FLIERS TO OTHER PARAMOUNT HOLDERS GROUSING THAT CHAIRMAN MARTIN DAVIS'S HEALTHY BONUSES WEREN'T TIED TO THE MEDIA GIANT'S ABSYMAL RESULTS WISCONSIN LOST THE FIGHT BUT ITS JUDGMENT WAS VINDICATED A FEW MONTHS LATER WHEN PARAMOUNT BECAME A TAKEOVER TARGET WHILE CALPERS CHIEF EXECUTIVE OFFICER DALE HANSON ENCOURAGED TIME WARNER INC IN A PRIVATE JANUARY MEETING TO ADOPT A TAKEOVERDEFENSE PLAN TO THWART SEAGRAM CO WISCONSIN ISN'T PLEASED WITH TIME WARNER'S NEW POISON PILL APPROVED WITHOUT A SHAREHOLDER VOTE THE PILL WAS DESIGNED TO PREVENT SEAGRAM FROM GAINING CONTROL WITHOUT PAYING A CONTROL PREMIUM BUT WISCONSIN OPPOSES UNILATERALLY ADOPTED PILLS SAYS KURT SCHACHT THE FUND'S GENERAL COUNSEL WISCONSIN FILED SUIT TO CHALLENGE THE PRICE PAID IN 1992 BY MARVEL ENTERTAINMENT GROUP INC TO ACQUIRE FLEER CORP WINNING AN EXTRA 6 MILLION OR 23 MORE PER SHARE THAN MARVEL PAID OTHER INVESTORS ALTHOUGH WISCONSIN WAS FLEER'S LARGEST HOLDER WITH 98 MARVEL WAS NO PUSHOVER IT IS A UNIT OF MACANDREWS & FORBES HOLDINGS INC CONTROLLED BY SAVVY FINANCIER RONALD O PERELMAN WISCONSIN IS NOW USING THE SAME TACTIC TO OPPOSE A SHARE PRICE RECENTLY APPROVED BY CORPORATE SOFTWARE INC FOR ITS MERGER WITH CS ACQUISITION CORP CORPORATE SOFTWARE A RESELLER IN CANTON MASS MAINTAINS THE APPROVED PRICE IS APPROPRIATE DESPITE THE SUCCESS OF ITS SHAREHOLDER ACTIVISM WHICH BEGAN IN 1986 WISCONSIN HAS REMAINED RELATIVELY OBSCURE COMPARED WITH CALPERS PARTLY BECAUSE ITS PROFESSIONALS LACK MR HANSON'S COLORFUL FIREANDBRIMSTONE RHETORIC MR SCHACHT FOR ONE CALLS ACTIVISM SIMPLY ONE ALTERNATIVE FOR DEALING WITH AN UNDERPERFORMING STOCK OTHERS INCLUDE SIMPLY SELLING THE STOCK PATRICIA LIPTON THE FUND'S EXECUTIVE DIRECTOR A RESERVED BRITISH ECONOMIST ADDS IT'S PART OF A CONTINUUM OF DUE DILIGENCE FOR THE PAST 10 YEARS THE FUND'S STOCKS GENERATED A TOTAL RETURN OF 136 ANNUALLY COMPARED WITH 149 FOR THE STANDARD & POOR'S 500 STOCK INDEX PORTFOLIO ANALYSTS AND THEIR MANAGERS ARE IMPORTANT WISCONSIN PLAYERS THEY COMB COMPANY FILINGS FOR SIGNS OF SHAREHOLDERUNFRIENDLY BEHAVIOR SUCH AS EXCESSIVE EXECUTIVE PAY PLANS REPRICING OF MANAGEMENT STOCK OPTIONS AFTER A STOCKPRICE DECLINE OR DILUTIVE STOCKOPTION PLANS WHILE CALPERS TARGETS ABOUT 10 POOR PERFORMERS ANNUALLY AIMING FOR CORPORATEGOVERNANCE REFORMS THAT MAY BOOST THEIR LONGTERM EARNINGS WISCONSIN TYPICALLY REACTS TO SOME SPECIFIC UNWELCOME CORPORATE DEVELOPMENT SAYS JOHN POUND A HARVARD CORPORATEGOVERNANCE EXPERT WISCONSIN'S EQUITY STAKES OF UP TO 10 MAY CARRY MORE CLOUT WITH A TARGET COMPANY THAN CALPERS WHICH OWNS A WIDER UNIVERSE OF STOCKS MIMICKING A MARKET INDEX TWOTHIRDS OF WISCONSIN'S TARGETS COME FROM A 4 BILLION INTERNALLY MANAGED PORTFOLIO OF 300 MEDIUMSIZED COMPANIES THE REHABHOSPITAL CHAIN DECRIED WISCONSIN'S INFLAMMATORY EFFORT BUT APPARENTLY FACED WITH DEFEAT IT YANKED THE PROPOSAL AT THE 11TH HOUR THEN WISCONSIN WANTED TO INSPECT THE BALLOTS TO DETERMINE ITS LEVEL OF SUCCESS THE COMPANY INITIALLY BALKED AS A RESULT WISCONSIN IS NOW PRODDING REGULATORS TO GAIN BETTER ACCESS TO SUCH BALLOTS WHAT'S ON TAP THIS YEAR WISCONSIN FUND OFFICIALS WON'T SAY THEIR PRACTICE IS TO KEEP MUM UNTIL NEGOTIATIONS BREAK DOWN AND A PROXY FIGHT IS INEVITABLE WISCONSIN'S HEIGHTENED ACTIVISM IS ALL THE MORE STRIKING BECAUSE MANY VETERAN ACTIVISTS HAVE LOWERED THEIR PROFILES ROBERT MONKS FAILED TO ATTRACT MAJOR INSTITUTIONAL SUPPORT FOR HIS TINY LENS INC FUND AND AT YEAR END THE SEVENYEAROLD UNITED SHAREHOLDERS ASSOCIATION CLOSED ITS DOORS AS WISCONSIN HAS BECOME MORE PUBLIC MR HANSON HAS DEVOTED MORE ENERGY TO HIS FUND'S INTERNAL OPERATIONS THAT'S PARTLY BECAUSE SOME CALPERS TRUSTEES BELIEVE HE WAS GIVING SHORT SHRIFT TO BENEFICIARY SERVICES MR HANSON MAY BECOME EVEN LESS OF A FORCE SOON HE ACKNOWLEDGES HE'S OPEN TO OTHER JOB POSSIBILITIES 9403180098 940318 LEISURE & ARTS BOOKSHELF LIVING BETTER BY UNDERSTANDING DYING BY ROGER KIMBALL WHEN I TOLD A FRIEND ABOUT HOW WE DIE SHERWIN B NULAND'S NEW BOOK ON WHAT HAPPENS TO THE BODY AS IT PREPARES TO CHECK OUT FOR GOOD HE SAID IT SOUNDS LIKE THE PERFECT ANALOGUE TO THE DOOMED CLINTON HEALTHCARE PLAN WELL IT IS AND IT ISN'T HOW WE DIE REFLECTIONS ON LIFE'S FINAL CHAPTER KNOPF 278 PAGES 24 CERTAINLY HAS SOME GRISLY PAGES AS DR NULAND NOTES FOR ALL THE WONDERS OF MODERN MEDICINE THE GOAL OF DEATH WITH DIGNITY REMAINS DISAPPOINTINGLY ELUSIVE WE RARELY GO GENTLE INTO THAT GOOD NIGHT BUT THIS WISE POWERFULLY WRITTEN BOOK IS NOT ALL BAD NEWS THERE ARE SOME PAINFULLY GRAPHIC PASSAGES ABOUT THE DEVASTATING EFFECTS OF CANCER OR AIDS OR ALZHEIMER'S DISEASE FOR EXAMPLE THAT MOST PEOPLE WILL PROBABLY SKIM DR NULAND DOES NOT STINT ON THE DETAILS BUT NEITHER IS HE GRATUITOUSLY MORBID UNLIKE THE CLINTON HEALTHCARE PLAN DEATH IS UNAVOIDABLE IT CANNOT BE REPEALED OR TABLED OR VOTED OUT OF OFFICE DR NULAND A SURGEON WHO HAS TAUGHT FOR MANY YEARS AT YALE UNIVERSITY SEEKS TO PRESENT THE HARD BIOLOGICAL AND CLINICAL REALITY OF DEATH YET HE DOES SO NOT TO FRIGHTEN BUT TO INOCULATE US TO DEMYTHOLOGIZE THE PROCESS OF DYING BY HONESTLY DESCRIBING WHAT IT IS REALLY LIKE HE ALSO SETS THE RECORD STRAIGHT ON MANY ISSUES LARGE AND SMALL FOR EXAMPLE NEVER MIND POPULAR BELIEF HAIR AND NAILS DO NOT KEEP GROWING FOR VARYING PERIODS AFTER DEATH IT MAY SEEM ODD THAT DEATH IS SOMETHING WE NEED TO LEARN ABOUT AFTER ALL DEATH LIKE TAXES IS ONE OF LIFE'S UNPLEASANT CERTAINTIES OVER THE PAST 50 YEARS OR SO MEDICINE HAS MADE DAZZLING ADVANCES BUT AS DR NULAND POINTS OUT MODERN BIOMEDICINE HAS ALSO CONTRIBUTED TO THE MISGUIDED FANCY BY WHICH EACH OF US DENIES THE CERTAIN ADVENT OF OUR OWN INDIVIDUAL MORTALITY DR NULAND IS NOT HIMSELF A RELIGIOUS MAN BUT HIS BOOK IS APPROPRIATE LENTEN READING COAXING US TO REFLECT ON THE FACT THAT ALL THAT IS BORN MUST DIE IT IS ONE OF DR NULAND'S THEMES THAT THE TRIUMPHS OF MODERN MEDICINE AND ADMINISTRATION HAVE DEPERSONALIZED DEATH RENDERING IT MORE DISTANT BUT ALSO MORE FORBIDDING THAN IT HAS TO BE IN RECENT GENERATIONS HE WRITES WE HAVE ADDED SOMETHING NEW WE HAVE CREATED THE METHOD OF MODERN DYING MODERN DYING TAKES PLACE IN THE MODERN HOSPITAL WHERE IT CAN BE HIDDEN CLEANSED OF ITS ORGANIC BLIGHT AND FINALLY PACKAGED FOR MODERN BURIAL SO MUCH THE BETTER YOU MAY SAY WHO WANTS MORE ORGANIC BLIGHT IN HIS LIFE BUT DR NULAND'S POINT IS THAT DESPITE ITS EFFICIENCIES THE METHOD OF MODERN DYING HAS ROBBED US OF SOMETHING IMPORTANT THE REALIZATION THAT DEATH IS THE NATURAL CULMINATION OF LIFE THE PROBLEM LIES PARTLY IN THE PROMETHEAN AMBITIONS THAT MODERN MEDICINE SHARES WITH ALL MODERN TECHNOLOGY BEYOND THE CURIOSITY AND THE PROBLEMSOLVING CHALLENGE FUNDAMENTAL TO GOOD RESEARCH DR NULAND OBSERVES I BELIEVE THAT THE FANTASY OF CONTROLLING NATURE LIES AT THE VERY BASIS OF MODERN SCIENCE PATIENTS HAVE BENEFITED GREATLY BUT ALSO SUFFERED GREATLY AS A RESULT OF THAT FANTASY EQUIPPED WITH THE ARSENAL OF HIGHTECH MEDICINE MANY DOCTORS SEEM TO REGARD EVERY DEATH AS A PERSONAL AFFRONT A FAILURE WHEN IN FACT MANY ARE SIMPLY INEVITABLE HIDING DEATH AWAY IN THE SANITIZED CHAMBERS OF THE INTENSIVECARE UNIT IS NOT NECESSARILY A STEP FORWARD IT CAN MAKE THE PROCESS OF DYING BOTH LONELIER AND MORE FRIGHTENING LONELIER BECAUSE IT MEANS THAT WE END OUR DAYS IN A STRANGE ROOM EMBRACED MORE CLOSELY BY PLASTIC TUBES AND MONITORING DEVICES THAN BY OUR LOVED ONES MORE FRIGHTENING BECAUSE MOST OF US HAVE NO IDEA WHAT TO EXPECT DR NULAND HOPES THAT IF THE HORSEMEN OF DEATH BECOME JUST A BIT MORE FAMILIAR PERHAPS THEY WILL ALSO BECOME LESS FRIGHTENING HE ALSO HOPES THAT FRANK ACKNOWLEDGMENT OF DEATH WILL LEAD US AS A SOCIETY TO RECONSIDER SOME OF OUR HEALTHCARE PRIORITIES DR NULAND IS HIMSELF ONE OF THOSE HIGHTECH DOCTORS WHO PRACTICES AT A MAJOR RESEARCH HOSPITAL BUT WHEN IT COMES TO CARING FOR THE DYING WHEN THE EXPENSIVE INTERVENTIONS CONTRIVED BY MODERN MEDICINE CAN NO LONGER HEAL HE KNOWS THAT THE HUMAN TOUCH PROVIDES THE MOST EFFECTIVE CONSOLATION BETWEEN THE LINES OF THIS BOOK HE WRITES IN HIS CONCLUSION LIES AN UNSPOKEN PLEA FOR THE RESURRECTION OF THE FAMILY DOCTOR MODERN MEDICINE SHOULD DO ALL THAT IT CAN TO RESTORE A PATIENT'S HEALTH IT SHOULD ALSO RECOGNIZE THAT THERE COMES A POINT WHEN ADDITIONAL THERAPY IS USELESS OR EVEN COUNTERPRODUCTIVE ALTHOUGH THE INFORMATION IT CONTAINS IS VERY UPTODATE HOW WE DIE ACTUALLY BELONGS TO THAT ANCIENT PHILOSOPHICAL GENRE CONCERNED WITH THE ARS MORIENDI THE ART OF DYING AT LEAST SINCE SOCRATES PHILOSOPHERS HAVE UNDERSTOOD THAT THERE IS A SENSE IN WHICH DEATH IS THE MEASURE OF LIFE BUT IT ALSO WORKS THE OTHER WAY THE GREATEST DIGNITY TO BE FOUND IN DEATH DR NULAND WRITES IS THE DIGNITY OF THE LIFE THAT PRECEDED IT THIS IS A FORM OF HOPE WE CAN ALL ACHIEVE AND IT IS THE MOST ABIDING OF ALL HOPE RESIDES IN THE MEANING OF WHAT OUR LIVES HAVE BEEN IT IS WELL THAT WE RECOGNIZE AND ACCEPT OUR MORTALITY ONLY THEN CAN WE FULLY GET ON WITH THE BUSINESS OF LIVING 9403180097 940308 A CLASS OPPORTUNITY TO SUE BY CHARLES EM KOLB THROUGHOUT OUR HISTORY DECISIONS ABOUT EDUCATION HAVE REMAINED PRIMARILY WITH LOCAL COMMUNITIES REFLECTING THE VALUES OF THE PARENTS AND FAMILIES WHO FOOT THE BILLS IF SOME DEMOCRATS IN CONGRESS HAVE THEIR WAY ALL THIS COULD SOON CHANGE UNDER CONSIDERATION ON CAPITOL HILL THIS WEEK ARE PROPOSED AMENDMENTS TO THE ELEMENTARY AND SECONDARY EDUCATION ACT REAUTHORIZATION THAT CONSTITUTE A MASSIVE AND ILLADVISED SHIFT OF EDUCATION CONTROL TOWARD EDUCRATS LAWYERS AND WASHINGTON THE ELEMENTARY AND SECONDARY EDUCATION ACT AUTHORIZES THE COUNTRY'S LARGEST FEDERAL EDUCATION PROGRAM THE CHAPTER 1 PROGRAM THAT FUNDS REMEDIAL MATH AND READING PROGRAMS FOR ECONOMICALLY DISADVANTAGED CHILDREN MOST OF THE SCHOOL DISTRICTS THROUGHOUT AMERICA RECEIVE SOME CHAPTER 1 MONEY IN THE CURRENT FISCAL YEAR CHAPTER 1 DISBURSED MORE THAN 63 BILLION TO LOCAL EDUCATION AUTHORITIES AND PRESIDENT CLINTON WANTS TO BOOST CHAPTER 1 FUNDING NEXT YEAR BY MORE THAN 10 TO A NICE ROUND 7 BILLION DESPITE THE FACT THAT NO ONE KNOWS FOR SURE WHETHER THESE FEDERAL DOLLARS ACTUALLY WORK SOME PRELIMINARY STUDIES EVEN SUGGEST THAT CHAPTER 1 STUDENTS REGRESS RATHER THAN IMPROVE MEANWHILE ON CAPITOL HILL A FEW LIBERAL DEMOCRATS INCLUDING REP MAJOR OWENS D NY ARE TRYING TO USE CHAPTER 1 AS A VEHICLE FOR BREATHING NEW LIFE INTO ONE OF THE EDUCATION ESTABLISHMENT'S FAVORITE ISSUES HOW MUCH ARE WE SPENDING VS ACHIEVING IN OUR NATION'S SCHOOLS THE BUSH ADMINISTRATION WORKED CLOSELY WITH THE NATION'S GOVERNORS INCLUDING THEN ARKANSAS GOV BILL CLINTON TO DEVELOP NATIONAL EDUCATION GOALS DESCRIBING WHAT OUR CHILDREN SHOULD KNOW AND BE ABLE TO ACHIEVE IN SCHOOL THE GOALS WERE APPROPRIATELY ENDORSED BY THE CLINTON ADMINISTRATION IN THE GOALS 2000 EDUCATE AMERICA ACT SOME DEMOCRATS ON THE HOUSE EDUCATION AND LABOR COMMITTEE HOWEVER WERE FURIOUS THAT THE EDUCATION ESTABLISHMENT'S FIXATION ON SPENDING MIGHT BE SLIGHTED BY TOO MUCH EMPHASIS ON REAL EDUCATIONAL ACHIEVEMENT DESPITE THE FACT THAT COUNTLESS STUDIES DEMONSTRATE NO CORRELATION WHATSOEVER BETWEEN SPENDING AND EDUCATIONAL PERFORMANCE DEMOCRATS LIKE REP OWENS WANTED TO BLOCK ALL ACHIEVEMENT STANDARDS UNLESS THEY WERE PRECEDED BY OPPORTUNITY TO LEARN STANDARDS OPPORTUNITY TO LEARN IS THE LATEST EUPHEMISM CONCOCTED BY PROFESSIONAL EDUCRATS TO MASK THEIR SINGLEMINDED DETERMINATION TO BOOST EDUCATION SPENDING TO CUT THROUGH THE ORWELLIAN MIST READ OPPORTUNITY TO SPEND WHEREVER YOU SEE OPPORTUNITY TO LEARN IN ESSENCE SUCH STANDARDS WOULD MEAN THAT WE CANNOT HOLD OUR CHILDREN SCHOOLS AND TEACHERS ACCOUNTABLE FOR BETTER EDUCATIONAL PERFORMANCE UNTIL WE FIRST EQUALIZE AND THEN RAISE PERPUPIL SPENDING ACROSS AMERICA OPPORTUNITY TO LEARN STANDARDS CONSTITUTE THE LATEST EXCUSE BY THE EDUCATION ESTABLISHMENT AS TO WHY OUR CHILDREN AREN'T DOING BETTER IN SCHOOL THE GOALS 2000 LEGISLATION MAKES OPPORTUNITY TO LEARN STANDARDS VOLUNTARY SOME HOUSE DEMOCRATS WANTED THE STANDARDS TO BE MANDATORY MAKING IT VIRTUALLY IMPOSSIBLE TO SET HIGHER ACHIEVEMENT LEVELS WITHOUT FIRST SETTLING CONTENTIOUS ISSUES SURROUNDING RESOURCES BUT EVEN WITH VOLUNTARY STANDARDS SUCH DISPUTES WILL BE SETTLED BY LAWSUITS LIKE ALMOST EVERYTHING ELSE IN AMERICA THESE DAYS THE FORMER DIRECTOR OF CIVIL RIGHTS IN THE OLD DEPARTMENT OF HEALTH EDUCATION AND WELFARE DAVID TATEL IS PLANNING A WORKSHOP TOMORROW ENTITLED OPPORTUNITY TO LEARN OPPORTUNITIES TO SUE EDUCATION REPORTER EMILY FEISTRITZER QUOTES EDUCATION DEPARTMENT UNDER SECRETARY MIKE SMITH AS SAYING ALMOST A YEAR AGO I KNOW PEOPLE ALREADY WHO ARE GETTING THEIR CASES TOGETHER TO SUE ONCE GOALS 2000 IS ENACTED THESE HYPERLITIGANTS WOULD EXPERIENCE AN EVEN GREATER BONANZA IF THESE STANDARDS WERE MANDATORY LAST MONTH THE HOUSE EDUCATION AND LABOR COMMITTEE OFFERED A SERIES OF AMENDMENTS TO THE ELEMENTARY AND SECONDARY EDUCATION ACT THAT PASSED ON A STRAIGHT PARTY LINE VOTE AND WOULD REQUIRE STATES AND SCHOOL DISTRICTS SUBJECT TO FEDERAL APPROVAL TO SATISFY THE NEW OPPORTUNITY TO LEARN STANDARDS AS A PREREQUISITE TO RECEIVING CHAPTER 1 FUNDS THE COMMITTEE'S DEMOCRATS DON'T WANT YOU TO KNOW ABOUT THIS HOWEVER AND THAT'S WHY THESE AMENDMENTS WERE NOT OFFERED EARLIER AT THE SUBCOMMITTEE LEVEL BY RUSHING THEM THROUGH LATE IN THE GAME REP OWENS AND HIS COLLEAGUES WILL LEAVE LITTLE TIME FOR OPPOSITION TO MOUNT MOREOVER REP OWENS AND HIS ALLIES WILL INSIST THAT OPPORTUNITY TO LEARN STANDARDS ARE NOT MANDATORY SCHOOL DISTRICTS AFTER ALL ARE NOT REQUIRED TO SEEK CHAPTER 1 MONEY THEY'LL NOTE SMUGLY A BIPARTISAN AMENDMENT OFFERED BY REPS DALE KILDEE D MICH AND WILLIAM GOODLING R PA STATES THAT THE IMPLEMENTATION OF MODEL OPPORTUNITY TO LEARN STANDARDS IS VOLUNTARY BUT A STATE NONETHELESS HAS TO ESTABLISH THE STANDARDS IN ITS CHAPTER 1 PLAN AND GET THEM APPROVED BY THE FEDERAL EDUCATION DEPARTMENT REGARDLESS OF WHETHER THE STANDARDS ARE ACTUALLY IMPLEMENTED THEIR VERY EXISTENCE CONVEYS THE IMPRIMATUR OF A FEDERALLY APPROVED STANDARD THEREBY WHETTING THE APPETITES OF CIVILRIGHTS ATTORNEYS ONCE APPROVED THESE STANDARDS WOULD RETARD CREATIVE EDUCATION REFORM NATIONWIDE INNOVATIONS THAT DON'T CONFORM TO THE GOVERNMENTAPPROVED MODEL COULD INVITE LITIGATION EVEN THOUGH THE BIPARTISAN COMPROMISE STATES THAT THE BILL ITSELF PROVIDES NO NEW BASIS FOR LITIGATION MR GOODLING CONCEDES THAT THE STANDARDS WILL GUIDE STATES IN ENSURING THAT CHAPTER 1 STUDENTS RECEIVE A FAIR OPPORTUNITY AT GETTING A SOLID EDUCATION THE NEW CHAPTER 1 BILL MAY NOT HAVE CREATED ANY NEW LEGAL RIGHTS BUT PLENTY OF EXISTING FEDERAL AND STATE LAWS CAN BE INVOKED FOR LITIGATING WHAT CONSTITUTES A FAIR OPPORTUNITY THE CHAPTER 1 BILL IS SET FOR A VOTE ON THE HOUSE FLOOR THIS WEEK REP OWENS AND HIS SUPPORTERS SEE THIS STRUGGLE AS PART OF ONE LAST AND GLORIOUS EFFORT TO REVIVE LBJ'S GREAT SOCIETY IN THE 1990S IF THEY ARE SUCCESSFUL YOU CAN BE CERTAIN THAT OPPORTUNITY TO LEARN STANDARDS WILL BECOME THE NEXT VIRUS THAT INFECTS ALL FUTURE FEDERAL LEGISLATION AFFECTING ELEMENTARY AND SECONDARY EDUCATION BILL CLINTON BELIEVES IN ACTIVIST GOVERNMENT BUT ACTIVIST GOVERNMENT FOR A TRULY NEW DEMOCRAT MEANS FINDING WAYS TO INSPIRE NOT IMPEDE EDUCATION REFORM AT THE LOCAL LEVEL IF PRESIDENT CLINTON MEANS WHAT HE SAYS HE SHOULD URGE HIS FELLOW DEMOCRATS IN CONGRESS TO STOP THIS NONSENSE WE NEED REAL EDUCATION REFORM NOT MORE FEDERAL REGULATIONS AND LAWSUITS SEE RELATED LETTER LETTERS TO THE EDITOR SCHOOL REFORM BILLS A GOLDEN OPPORTUNITY WSJ MARCH 18 1994 9403080083 YY94 MM03 9403180096 940318 THE AMERICAS MEXICO'S PEACE COMMISSIONER GIVES US A CALL EDITOR'S NOTE ON TUESDAY NINE PARTIES REGISTERED THEIR CANDIDATES FOR MEXICO'S AUG 21 PRESIDENTIAL ELECTION NOTABLY ABSENT WAS MANUEL CAMACHO SOLIS THE GOVERNMENT'S PEACE NEGOTIATOR IN CHIAPAS ONE MONTH AGO A COLUMN BY AMERICAS EDITOR DAVID ASMAN CAUSED A STIR BY DESCRIBING MR CAMACHO'S PRESIDENTIAL AMBITIONS DESPITE HIS HAVING BEEN PASSED OVER AS THE OFFICIAL CANDIDATE OF THE RULING INSTITUTIONAL REVOLUTIONARY PARTY PRI MR CAMACHO CALLED MR ASMAN THIS WEEK TO SAY HE'D LIKE TO GO ON THE RECORD ABOUT SOME OF THE POINTS RAISED BY THAT COLUMN AND TO BRING UP A FEW NEW POINTS HE SPECIFICALLY ASKED TO RESPOND TO QUESTIONS ABOUT THE ECONOMY AN ISSUE HE HAS NOT HAD A CHANCE TO ADDRESS DURING HIS TWO MONTHS IN CHIAPAS THOUGH NOT NOW REGISTERED MR CAMACHO HAS UNTIL JULY 21 TO SUBSTITUTE FOR ONE OF THE NINE CANDIDATES I DON'T WANT TO GENERATE ANY OBSTACLES FOR THE NEGOTIATIONS IN CHIAPAS OR FOR THE ECONOMIC STABILITY OF MEXICO I FEEL THAT MY ROLE IN POLITICS HAS BEEN TO STRENGTHEN A FORCE IN THE CENTER THAT CAN PUSH FOR NEEDED REFORMS AS FOR REFORMS LEADING TO THE AUGUST ELECTION THERE ARE TWO GENERAL CONSIDERATIONS FIRST IS TO HAVE AN IMPARTIAL ELECTORAL STRUCTURE SECOND IS TO HAVE A CLEAN ELECTION IT'S REALLY AS SIMPLE AS THAT OF COURSE NO ELECTION IS COMPLETELY WITHOUT PROBLEMS AND PEOPLE DON'T EXPECT PERFECTION WHAT'S IMPORTANT IS THAT THERE IS A STRONG TREND IN THE RIGHT DIRECTION THERE IS NO POSSIBILITY OF MEXICO GROWING FASTER AND OUR ECONOMY BECOMING MORE MODERN UNLESS WE MAINTAIN THE RESPONSIBLE FISCAL AND MONETARY POLICIES THAT WE HAVE FOLLOWED FOR SEVERAL YEARS SPECIFICALLY THERE IS A NEED FOR CONTINUITY MONETARILY THIS WILL BE MET THROUGH THE NEW INDEPENDENT CENTRAL BANK UNDER THE DIRECTORSHIP OF MIGUEL MANCERA ON THE FISCAL SIDE THAT CONTINUITY WILL BE MAINTAINED THROUGH THE CONTINUED PARTICIPATION OF PEDRO ASPE AND HIS ECONOMIC TEAM PEDRO AND HIS EXCELLENT GROUP MUST BE PART OF WHAT IS TO COME IN MEXICO ON THE MICRO SIDE THE MEXICAN GOVERNMENT ALSO HAS TO BE CONSCIOUS OF WHO ARE BEING LEFT BEHIND AND HOW TO IMPROVE THEIR PROSPECTS FOR JOBS AND THEIR QUALITY OF LIFE THE GOVERNMENT HAS TO DO MORE IN THE AREAS OF JOB PROMOTION RETRAINING AND INCENTIVES FOR THOSE AREAS OF THE ECONOMY LIKE AGRICULTURE IN WHICH THERE ARE GOING TO BE MAJOR CHANGES AS A RESULT OF MODERNIZATION WE NEED AN INDUSTRIAL POLICY THAT IS NOT MERELY ABOUT STABILIZING THE ECONOMY BUT THAT WILL ACTIVELY PROMOTE ECONOMIC GROWTH WHILE JOB CREATION IS VITAL IT HAS TO BE COMPATIBLE WITH THE MACROECONOMIC PROGRAM WE ARE NOT TALKING ABOUT GOVERNMENT SUBSIDIZATION OF JOBS WE ARE TALKING ABOUT CREATING THE INCENTIVES FOR NEW JOBS BY DEREGULATION AND AN INCREASE IN TAX INCENTIVES OF COURSE THERE MUST ALSO BE JOB TRAINING PROGRAMS SPECIFICALLY IN AREAS LIKE CHIAPAS WHERE MODERNIZATION OF THE ECONOMY MAY CUT JOBS BEFORE NEW JOBS ARE AVAILABLE ELSEWHERE PEOPLE WHOSE LABORINTENSIVE JOBS HAVE BEEN LOST THROUGH MODERNIZATION MUST BE GIVEN OPPORTUNITIES TO TRAIN FOR NEW JOBS IN THEIR OWN COMMUNITIES GOOD SCHOOLS AND JOBS ARE TWO OF THE BEST INSTRUMENTS FOR REDUCING MEXICO'S EXTREME INCOME DISPARITIES FINALLY WE MUST DEVELOP POLICIES TO ADDRESS MEXICO'S NEW OPENNESS AND SPECIFICALLY THE NORTH AMERICAN FREE TRADE AGREEMENT NOW THAT WE HAVE NAFTA WE NEED TO DIRECT MORE POLICIES FOR IT AND AROUND IT CERTAIN AREAS OF MEXICO LIKE THE NORTH ARE ALREADY IN A GOOD POSITION TO TAKE ADVANTAGE OF NAFTA BUT OTHER SECTIONS LIKE THE SOUTH ARE NOT FOR EXAMPLE THE GOVERNMENT CAN DO MORE TO PROMOTE SMALL INDUSTRIES IN CHIAPAS LIKE TEXTILES THAT COULD DIRECTLY BENEFIT FROM NAFTA WE COULD HELP THESE COMMUNITIES EXPORT THEIR PRODUCTS THROUGH QUALITY CONTROL MARKETING AND TRAINING PROGRAMS THAT COULD MEAN THOUSANDS OF JOBS IN THE INDIAN COMMUNITIES SO INSTEAD OF BEING A CONCERN NAFTA COULD HELP CHIAPAS INCREASE ITS DEVELOPMENT IN RELATION TO THE REST OF MEXICO AND INDIVIDUALS COULD BEGIN TO CREATE ENTERPRISES INDEPENDENT OF POWERFUL INDIVIDUALS OR SOCIAL FORCES THAT SEEK TO CONTROL THEM RULE OF LAW NOW ONE THING ALL THIS REQUIRES IS FOR THE RULE OF LAW TO BE MONITORED RESPECTED AND ENFORCED IN MEXICO AS NEVER BEFORE WE SIMPLY CANNOT AFFORD TO MAKE PRIVATE OR PUBLIC INVESTMENTS SUCH AS THOSE I HAVE DESCRIBED IF LOCAL GROUPS OR POLITICAL FORCES MERELY GO BACK TO IGNORING INDIVIDUAL RIGHTS AND FORCING THEIR POWER OVER EVERYONE ELSE IN COMING UP WITH A SOLUTION FOR CHIAPAS WE ARE PROPOSING IMPORTANT LEGAL CHANGES AND NEW LEGAL AUTHORITIES THAT WOULD CREATE A BETTER APPLICATION OF THE RULE OF LAW IF THE FEDERAL GOVERNMENT APPLIES ALL ITS RESOURCES IN BACKING THE ENFORCEMENT OF THE RULE OF LAW THEN THE BALANCE WILL WORK IN THE RIGHT DIRECTION WITH MUCH GREATER CONSENSUS ONE EXAMPLE IS THE ESTABLISHMENT OF FEDERAL AND LOCAL PROSECUTORS THROUGHOUT THE AREA TO BRING CHARGES AGAINST HUMAN RIGHTS ABUSERS AND ENSURE THAT CITIZENS' CONSTITUTIONAL RIGHTS ARE FULLY PROTECTED THESE PROSECUTORS WILL HAVE FULL AUTONOMY AND WILL BE BACKED BY FEDERAL MARSHALS TO ENSURE THAT LOCAL INTERESTS CANNOT TWIST THE LAW FOR THEIR OWN BENEFIT AN EXECUTIVE COMMITTEE CONSISTING OF FEDERAL UNDERSECRETARIES WILL REGULARLY MONITOR THE ACTIVITIES OF THESE NEW OFFICIALS WHAT IS ABSOLUTELY CLEAR IN LIGHT OF CHIAPAS IS THAT MEXICO HAS TO TAKE DRAMATIC STEPS TO ENSURE THAT NO ONE IS ABOVE THE LAW AND THAT ALL MEXICANS HAVE EQUAL RIGHTS UNDER THE LAW IN FACT CHIAPAS MAY BECOME A NATIONAL MODEL FOR ENSURING THE GUARANTEE OF THE RULE OF LAW UNDER THE MOST ADVERSE CONDITIONS EARLY IN JANUARY IMMEDIATELY AFTER THE CHIAPAS REBELLION BEGAN EVERYONE THOUGHT THAT THINGS WERE FALLING APART IN MEXICO HOWEVER THESE PAST TWO MONTHS HAVE BEEN A PROCESS OF THINGS COMING TOGETHER THE WAR WAS STOPPED IN 10 DAYS FACETOFACE DIALOGUE WAS SET UP IN LESS THAN SIX WEEKS AND WE WILL CONTINUE TO FOLLOW A POLICY OF PEACE AND RECONCILIATION WE SHOULD SEE THE FINAL AGREEMENT FOR ELECTORAL REFORMS APPROVED BY ALL THE POLITICAL PARTIES SHORTLY SO THE POSITIVE INVESTMENT CLIMATE IN MEXICO IS GOING TO INCREASE BECAUSE OF WHAT HAS BEEN DONE WE NOW HAVE THE POSSIBILITY TO HAVE STRONG GROWTH WITH LOW INFLATION THE POLITICAL SOLUTION OF THE CHIAPAS CONFLICT BACKED BY PRESIDENT CARLOS SALINAS DE GORTARI IS WITHOUT PRECEDENT THE ISSUE IS NOT SO MUCH WHETHER MEXICO HAS PROBLEMS NO COUNTRY IS PROBLEMFREE WHAT IS IMPORTANT IS MEXICO'S CAPACITY TO ADMIT MISTAKES AND TO CHANGE ITS COURSE WITHOUT DESTROYING THE BASIS FOR ECONOMIC AND POLITICAL STABILITY IF THE NEXT ELECTION IS VIEWED AS FAIR AND THE RIGHT PEOPLE KEEP CONTROL OF THE ECONOMY WE WILL BE CONSOLIDATING THOSE THINGS THAT FOREIGN AND DOMESTIC INVESTORS NEED INCENTIVES FOR GROWTH AND SOCIAL AND POLITICAL STABILITY 9403180095 940318 MARKETING & MEDIA SAVOY NEWS CORP'S FOX TO START TVSTATION GROUP NEW YORK MOVIE DISTRIBUTOR SAVOY PICTURES ENTERTAINMENT INC SAID IT WILL START A TELEVISIONSTATION GROUP IN PARTNERSHIP WITH NEWS CORP'S FOX TELEVISION STATIONS INC THE NEW VENTURE SF BROADCASTING LLC WILL ACQUIRE US TELEVISION STATIONS SEEKING PRIMARILY TO PURCHASE AFFILIATES OF THE FOX TELEVISION NETWORK THE GROUP WILL START WITH 100 MILLION IN EQUITY CAPITAL WHICH IT SAID WILL ALLOW IT TO INVEST AS MUCH AS 500 MILLION WITH BORROWINGS FOX WILL PROVIDE 58 OF THE FINANCING AND SAVOY WILL PROVIDE 41 THE REMAINING 1 WILL COME FROM A NEW CORPORATION OWNED BY SAVOY PRINCIPALS VICTOR A KAUFMAN AND LEWIS J KORMAN WHICH WILL HOLD ALL VOTING INTERESTS IN SF BROADCASTING MR KORMAN PRESIDENT AND CHIEF OPERATING OFFICER OF SAVOY SAID THE FOX NETWORK IS POISED FOR SHARP GROWTH HE SAID SAVOY WILL ALSO LOOK AT OTHER ENTERTAINMENTRELATED ACQUISITIONS SUCH AS LOCAL SPORTS TEAMS IN AREAS WHERE SF BUYS TV STATIONS THOMAS HERWITZ FORMER VICE PRESIDENT AND GENERAL MANAGER OF FOX'S WASHINGTON TELEVISION STATION WTTG WILL BE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NEW VENTURE FOX WHICH ALREADY OWNS EIGHT STATIONS WILL HAVE NO MANAGEMENT ROLE IN THE NEW VENTURE TO AVOID ANY POTENTIAL CONFLICTS WITH FEDERAL RULES LIMITING COMPANIES FROM OWNING MORE THAN 12 STATIONS REACHING 25 OF THE US 9403180094 940318 CORPORATE FOCUS HUMAN GENOME SCIENCES SEES GOLD IN TROVE OF GENES COLONCANCER REPORT SPOTLIGHTS STRATEGY IN EXPLOITING BIGGEST COLLECTION BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL ROCKVILLE MD FOR HUMAN GENOME SCIENCES INC THIS WEEK'S REPORTS OF THE DISCOVERY OF A COLONCANCER GENE PROVIDE PROOF THAT BEING THE WORLD'S BIGGEST GENE COLLECTOR WILL PAY OFF HGS IS A FLEDGLING BUT WELLHEELED COMPANY WITH NO PRODUCTS YET BUT MORE THAN 40000 COMPLETE OR PARTIAL HUMAN GENES IN ITS BIOLOGICAL FILES THIS NUMBER IS GROWING RAPIDLY AND SOON MAY INCLUDE THE VAST MAJORITY OF AND POSSIBLY ALL HUMAN GENES HGS ASSERTS THE COMPANY CLAIMS THAT THIS HUGE INVENTORY GIVES IT FIRST CRACK OVER COMPETITORS INCLUDING UNIVERSITIES AND GOVERNMENTS AT THE DISCOVERY AND PATENTING OF HUNDREDS OR EVEN THOUSANDS OF USEFUL GENES AND IT SAYS THE FIRST PUBLISHED EVIDENCE OF HOW IT INTENDS TO EXPLOIT ITS GENE COLLECTION CAME THIS WEEK WITH A REPORT FROM RESEARCHERS AT JOHNS HOPKINS MEDICAL INSTITUTIONS IN THE JOURNAL SCIENCE IN THEIR REPORT THE JOHNS HOPKINS GENETICISTS SAID THAT HGS PLAYED A PIVOTAL ROLE IN THEIR DISCOVERY OF A GENE THAT CAUSES AN INHERITED FORM OF COLON CANCER CALLED HEREDITARY NONPOLYPOSIS COLORECTAL CANCER GENETICIST BERT VOGELSTEIN AND HIS COLLEAGUES AT JOHNS HOPKINS KNEW LAST DECEMBER THAT THE DEFECTIVE GENE THEY WERE SEEKING WAS SIMILAR TO CERTAIN BACTERIAL AND YEAST GENES THAT WERE ALREADY KNOWN SEVERAL WEEKS AGO DR VOGELSTEIN CALLED HGS ASKING IF ANY HUMAN GENES IN ITS FILES WERE SIMILAR TO THE KNOWN BACTERIAL GENES RECALLS HGS'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM HASELTINE I SAID WE HAD THREE SUCH GENES DR HASELTINE SAYS BERT SAID SUPER I'M COMING RIGHT DOWN' BY MIDNIGHT WE HAD THE GENE HE WAS LOOKING FOR WITH THE GENE FROM HGS IN HAND THE JOHNS HOPKINS GENETICISTS WERE ABLE TO SHOW THAT A MUTANT VERSION WAS CAUSING COLON CANCER IN 10 DIFFERENT FAMILIES KNOWN TO SUFFER AN INHERITED FORM OF THE DISEASE THE CANCER GENE IS THE FIRST GENE THAT HGS HAS COME UP WITH THAT MEETS THE CRITERION OF USEFULNESS FOR A PATENT THE GENE AND ITS MUTANTS HAVE A POTENTIAL USE IN DIAGNOSING COLON CANCER AND POSSIBLY OTHER CANCERS SOMETIME IN THE FUTURE IT MIGHT ALSO BE USEFUL IN DEVISING THERAPIES FOR CANCER THE COMPANY HAS APPLIED FOR A PATENT ON THE NEWFOUND CANCER GENE DR HASELTINE THE FORMER HARVARD VIROLOGIST WHO FOUNDED HGS BELIEVES THE EPISODE SHOULD ERASE MUCH OF THE SKEPTICISM THAT HAS GREETED THE COMPANY'S CLAIMS ABOUT ITS ABILITY TO EXPLOIT ITS HUGE LIBRARY OF HUMAN GENES THOSE GENES AREN'T IN AND OF THEMSELVES PATENTABLE THE SCIENTISTS KNOW THE FRAGMENTS OF HUMAN DNA IN THE LIBRARY ARE GENES BUT THEY DON'T YET KNOW WHAT BIOLOGICAL PURPOSE THEY SERVE OR WHICH ONES HAVE A USEFULNESS THAT PATENT LAW REQUIRES DR HASELTINE SAYS HGS EXPECTS TO FIND MANY MORE GENES WITH A PATENTABLE USEFULNESS FOR INSTANCE HGS SCIENTISTS RECENTLY HAVE FOUND A GENE FROM HEART AND LUNG TISSUE THAT DIGESTS DNA HE SAYS THIS MAKES IT A POTENTIAL TREATMENT FOR THE LUNG CONGESTION THAT THREATENS THE LIVES OF PATIENTS WITH CYSTIC FIBROSIS THE HGS GENE AND ITS ENZYME IF PARLAYED INTO SUCH A TREATMENT WOULD COMPETE WITH AN ENZYME ALREADY BEING SOLD BY GENENTECH INC THE DIFFERENCE WOULD BE THAT THE GENENTECH ENZYME COMES FROM A GENE THAT FUNCTIONS IN THE PANCREAS WHILE HGS'S COMES FROM A GENE THAT FUNCTIONS IN THE LUNGS DR HASELTINE SAYS NO MATTER WHICH WAY YOU TURN IN THE MEDICINE OF THE FUTURE YOU RUN INTO GENES WHETHER IT BE FOR DIAGNOSTIC THERAPEUTIC OR SCIENTIFIC USE HE ADDS BUT MANY OTHER SCIENTISTS ARE STILL SKEPTICAL THAT HGS HAS FOUND THE SECRET FOR COMMERCIALLY EXPLOITING THE HUMAN GENOME DISCOVERY OF THE SAME COLONCANCER GENE WAS REPORTED YESTERDAY BY A SECOND COMPETING RESEARCH TEAM THAT USED A DIFFERENT ROUTE TO FINDING THE GENE WE GOT THE SAME RESULT AND GOT IT FASTER THAN THE JOHNS HOPKINSHGS TEAM SAYS RICHARD FISHEL A MOLECULAR BIOLOGIST AT THE UNIVERSITY OF VERMONT WHO WAS ONE OF THE KEY MEMBERS OF THE MULTIUNIVERSITY TEAM OF SCIENTISTS WHO FOUND THE COLONCANCER GENE MOREOVER DR FISHEL ADDS IT'S BY NO MEANS CERTAIN THAT HGS WILL GET A PATENT ON THE GENE SINCE THE UNIVERSITIES OF THE SCIENTISTS ON THE TEAM ALSO HAVE APPLIED FOR A PATENT ON THE SAME GENE WORD OF HGS'S ROLE IN DISCOVERING THE CANCER GENE APPARENTLY LEAKED OUT EARLY AND CAUSED THE PRICE OF THE COMPANY'S STOCK TO JUMP TO 1725 FROM 15 ON TUESDAY AFTERNOON ACCORDING TO THE DOW JONES NEWS SERVICE THE STOCK ROSE 75 CENTS OR 42 TO CLOSE AT 1850 A SHARE IN NASDAQ STOCK MARKET TRADING YESTERDAY THE ISSUE OF THE JOURNAL SCIENCE INCLUDING THE GENE DISCOVERY WASN'T SUPPOSED TO BE MADE PUBLIC UNTIL WEDNESDAY EVENING OFFICIALS OF HGS AND SCIENCE SAID THEY DIDN'T KNOW HOW THE INFORMATION MIGHT HAVE LEAKED OUT HOWEVER A WIDE RANGE OF SCIENTISTS UNIVERSITY INFORMATION OFFICIALS AND REPORTERS WERE AWARE OF THE RESEARCH DAYS BEFORE PUBLICATION THE EXPERIMENT IN WHICH HGS PLAYED A PART FOR INSTANCE INVOLVED 20 SCIENTISTS AT SEVEN INSTITUTIONS THE SECOND COMPETING TEAM THAT FOUND THE SAME GENE INVOLVED 18 SCIENTISTS AND SIX INSTITUTIONS ALSO COPIES OF THE REPORTS WERE AVAILABLE TO THE NEWS MEDIA AS EARLY AS MONDAY ON AN EMBARGOED BASIS ONE MAJOR DRUG MAKER IS BETTING MILLIONS ON THE HGS APPROACH TO GENE EXPLOITATION SMITHKLINE BEECHAM PLC THE BIG ANGLOAMERICAN DRUG COMPANY SMITHKLINE HAS COMMITTED A TOTAL OF 125 MILLION FOR AN EQUITY INTEREST IN HGS AND FOR A FIRST OPTION ON HGS'S GENE DISCOVERIES LAST YEAR HGS'S REVENUE OF 22 MILLION CAME ENTIRELY FROM PAYMENTS BY SMITHKLINE SMITHKLINE HASN'T YET DECIDED WHETHER IT WILL EXERCISE ITS OPTION ON THE CANCER GENE A SPOKESMAN SAID HGS'S STRATEGY IS BASED ON A GENEFINDING TECHNIQUE WORKED OUT BY MOLECULAR BIOLOGIST CRAIG VENTER WHEN HE WAS AT THE NATIONAL INSTITUTES OF HEALTH THE TECHNIQUE LETS DR VENTER FIND GENES WITHOUT KNOWING WHAT THEIR FUNCTION IS IN THE CELL WE'RE FINDING 300 TO 400 NEW GENES PER DAY DR HASELTINE SAYS THESE FRAGMENTS ARE ALL TRANSPLANTED TO BACTERIA YEASTS AND OTHER TESTTUBEGROWN CELLS FOR STORAGE BUT HE EXPLAINS THE COMPANY'S MOST VALUABLE ASSET IS THE SEQUENCE OF THE MOLECULES IN A GENE WHICH IS THE BLUEPRINT FOR A PROTEIN SO HGS HAS A ROOM FULL OF AUTOMATED MACHINES SEQUENCING ABOUT 750000 MOLECULES A DAY ONCE THE MOLECULAR SEQUENCE OF PART OF EACH GENE IS STORED IN THE COMPANY'S PRIVATE DATA BANK HGS SCIENTISTS BEGIN SEARCHING THROUGH GENE AND PROTEIN DATA BANKS ROUND THE WORLD TO SEE IF THE GENE HAS BEEN FOUND BY OTHERS THEY ARE PARTICULARLY ON THE WATCH FOR NEW GENES THAT ARE SIMILAR TO BUT NOT IDENTICAL WITH GENES ALREADY DISCOVERED WHEN SUCH SIMILARITIES POP UP THE SCIENTISTS CAN THEN START MAKING EDUCATED GUESSES AS TO WHAT THE FUNCTION OF THE NEWFOUND GENE IS HGS HAS BEEN CRITICIZED FOR KEEPING THIS VAST STORE OF SEQUENCE DATA SECRET BUT DR HASELTINE SAYS WE'RE COMMITTED TO MAKING THIS INFORMATION AVAILABLE TO SCIENTISTS WORLDWIDE IN NOTFORPROFIT INSTITUTIONS FOR SCIENTIFIC PURPOSES IN A WAY THAT PRESERVES OUR PROPRIETARY RIGHTS THE DETAILS HOWEVER HAVEN'T BEEN WORKED OUT HE SAYS 9403180093 940318 THURSDAY'S MARKETS STOCKS ADVANCE NASDAQ AT HIGH BONDS RETREAT BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES CLIMBED WITH THE NASDAQ COMPOSITE INDEX HITTING A RECORD EVEN AS THE BOND MARKET RETREATED THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE RALLIED 1699 POINTS TO 386514 AFTER AN OPTIMISTIC OUTLOOK FROM CATERPILLAR A MACHINERY MAKER PROMPTED INVESTORS TO LOAD UP ON SOME OF THE ECONOMICALLY SENSITIVE STOCKS THAT MAKE UP THE INDUSTRIAL AVERAGE STANDARD & POOR'S 500STOCK INDEX GAINED 148 TO 47090 AND THE NASDAQ COMPOSITE JUMPED 486 TO 80385 SHATTERING ITS OLD RECORD OF 80047 SET ON JAN 31 STRENGTH IN TECHNOLOGY AND TELECOMMUNICATIONS SHARES HELPED BOOST THE INDEX OF SMALL TO MEDIUMCAPITALIZATION STOCKS CATERPILLAR SAID THAT AS A RESULT OF GROWING STRENGTH IN THE US AND EUROPEAN ECONOMIES SALES OF ITS MACHINES AND ENGINES WILL EXCEED EXPECTATIONS IN THE FIRST QUARTER IN THE TUGOFWAR BETWEEN INTEREST RATES AND EARNINGS EARNINGS ARE WINNING SAID STEFAN ABRAMS DIRECTOR OF EQUITY STRATEGY AT TRUST CO OF THE WEST MR ABRAMS SAID THAT IN THE COMING MONTHS SUPRISINGLY GOOD EARNINGS WILL CONQUER MODERATELY HIGHER INTEREST RATES AND HELP PROPEL THE STOCK MARKET HIGHER FOR INDUSTRIAL AND TECHNOLOGY COMPANIES THE SURPRISES ARE ON THE UPSIDE HE SAID MEANWHILE JITTERS CONTINUED TO PLAGUE THE BOND MARKET BOND PRICES WERE BUOYED IN THE MORNING BY A REPORT FROM THE FEDERAL RESERVE BANK OF PHILADELPHIA THAT SAID THAT FEWER MANUFACTURERS THIS MONTH ARE PAYING HIGHER PRICES FOR SUPPLIES THAN LAST MONTH THAT NEWS ASSUAGED THE INFLATION HAWKS ON WALL STREET BUT COULDN'T KEEP PRICES AFLOAT FOR THE REST OF THE DAY WE GOT A LIFT ON THE PHILADELPHIA FED SURVEY BUT THERE WAS VERY LITTLE FOLLOWTHROUGH BY RETAIL INVESTORS SAID JOSEPH LIRO ECONOMIST AT SG WARBURG WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 002 TO 11648 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 3039 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1149 ISSUES ADVANCED AND 1015 DECLINED BOND PRICES EASED THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL 3/8 POINT OR 375 FOR EACH 1000 FACE AMOUNT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 16890 MARKS AND 10585 YEN COMPARED WITH 16885 MARKS AND 10607 YEN WEDNESDAY 9403180092 940318 ECONOMY CONRAIL IS STRAINED BY HEAVY VOLUME WEATHER CAUSING DELAYS FOR SHIPPERS BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL SURGING FREIGHT SHIPMENTS AGGRAVATED BY THIS WINTER'S COLD AND ICE ARE STRAINING THE CAPACITY OF CONRAIL INC LEADING TO DELAYS DISRUPTIONS AND HIGHER COSTS FOR RAIL SHIPPERS THE SEVERE WINTER WEATHER THAT BATTERED THE MIDWEST AND NORTHEAST HAS BEEN LARGELY RESPONSIBLE FOR THE SLOWED TRAINS CLOGGED FREIGHT YARDS AND SNARLED SHIPMENTS AT CONRAIL BUT SHIPPERS COMPLAIN THAT THE RAILROAD WAS CAUGHT SHORT LACKING ENOUGH LOCOMOTIVES AND TRAIN CREWS TO HANDLE A PICKUP IN SHIPMENTS AND AFFECTED BY THE CLOSING OF PART OF A BIG CONRAIL FREIGHT YARD NEAR HARRISBURG PA LAST AUTUMN OTHER RAILROADS WITH OPERATIONS IN THE EAST SUCH AS NORFOLK SOUTHERN CORP AND CSX CORP WERE ALSO HURT BY WEATHERRELATED PROBLEMS BUT NONE AS MUCH AS CONRAIL WHICH HAS MANY OF ITS KEY LINES AND YARDS IN AREAS HIT HARDEST BY THE STORMS CONRAIL WHICH OPERATES ABOUT 11400 MILES OF RAIL ROUTES IN 13 STATES IN THE NORTHEAST AND MIDWEST ACCOUNTS FOR ABOUT 12 OF TOTAL RAIL REVENUE AMONG THE NATION'S MAJOR RAILROADS DESPITE THE APPROACHING SPRING OFFICIALS AT PHILADELPHIABASED CONRAIL SAY THEY DON'T EXPECT A FULL RECOVERY OF SERVICE TO SHIPPERS FOR AS LONG AS 60 DAYS WE HAVE SEEN THE POOREST SERVICE FROM CONRAIL IN OUR 12YEAR HISTORY SAID MARC LEVINE GENERAL MANAGER OF THE PIONEER VALLEY RAILROAD A SHORTLINE CARRIER IN WESTFIELD MASS THAT RELIES ON CONRAIL FOR THE LONGHAUL MOVEMENT OF RAIL CARS DELIVERIES TO OUR RAILROAD HAVE BEEN DELAYED OUTBOUND SHIPMENTS HAVEN'T BEEN PICKED UP FOR DAYS AND OUR CUSTOMERS' SATISFACTION WITH RAIL SERVICE IN GENERAL HAS BEEN DIMINISHED THE DISRUPTION TO RAIL TRANSPORTATION IN THE EAST AND MIDWEST HAS WORSENED A SHORTAGE OF CERTAIN TYPES OF FREIGHT CARS THROUGHOUT THE COUNTRY AS A RESULT CHRYSLER CORP IS HAVING TROUBLE GETTING ITS HOTTESTSELLING CARS AND TRUCKS TO DEALERS ON THE WEST COAST SOME SHIPPERS HAVE TURNED TO LONGHAUL TRUCKS TO MOVE TIMESENSITIVE FREIGHT INCURRING HIGHER SHIPPING COSTS OTHERS ARE BOOSTING INTRANSIT INVENTORIES TO ACCOMODATE LONGER SHIPPING SCHEDULES THERE HASN'T BEEN AN AREA ON THE CONRAIL SYSTEM WHERE WE HAVEN'T EXPERIENCED SLOWDOWNS AND DELAYS SAID RON WEBER DIRECTOR OF MARKETING SERVICES AT AIR PRODUCTS & CHEMICALS INC IN ALLENTOWN PA THE COMPANY HAS SECURED ADDITIONAL TANK CARS TO KEEP CHEMICALS MOVING TO CUSTOMERS IT IS STARTING TO COME AROUND BUT THERE ARE STILL DELAYS FOR ITS PART CONRAIL SAYS IT EXPERIENCED ITS WORST WINTER IN 15 YEARS WE GOT HIT HARD IN JANUARY HIT HARD AGAIN IN FEBRUARY AND HIT HARD IN EARLY MARCH SAID JAMES HAGEN CONRAIL'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER IT REALLY NEVER LET UP THE RAILROAD COULDN'T RUN LONG FREIGHT TRAINS BECAUSE AIR BRAKES DON'T WORK PROPERLY IN EXTREME COLD FORCING CONRAIL TO USE SHORTER TRAINS AND THUS USING UP MORE LOCOMOTIVES AND TRAIN CREWS FROZEN SWITCH TRACKS PREVENTED DELIVERIES TO CUSTOMERS THE WINTER WEATHER INCREASED LOCOMOTIVE AND SIGNAL SYSTEM FAILURES EARLIER THIS MONTH AN AVALANCHE BURIED PORTIONS OF CONRAIL'S HARRISBURGBUFFALO RAIL LINE UNDER AS MUCH AS 40 FEET OF SNOW BUT CONRAIL ALSO WAS CAUGHT OFF GUARD BY A SUDDEN BOOST IN SHIPMENTS REFLECTING A PICKUP IN THE ECONOMY AND MORE SHIPPERS ATTRACTED BY IMPROVEMENTS IN RAIL SERVICE CONRAIL'S FREIGHT TRAFFIC IS RUNNING ABOUT 11 AHEAD OF A YEAR AGO EVEN IF WE HADN'T HAD THIS HORRIBLE WINTER WE WOULD HAVE HAD SOME SERVICE DISRUPTIONS SAID GORDON KUHN A CONRAIL SENIOR VICE PRESIDENT WE DIDN'T ADEQUATELY PLAN LOCOMOTIVE POWER AND MANPOWER FOR THE BUSINESS BUT THIS WHOLE INDUSTRY FOR A LONG TIME HAS DONE NOTHING BUT DOWNSIZE WE HAVEN'T HAD A LOT OF EXPERIENCE PLANNING FOR GROWTH CONRAIL OFFICIALS SAY THEY ARE GRADUALLY WORKING THEIR WAY OUT OF THE MESS HELPED BY TWO WEEKS OF FAVORABLE WEATHER THAT HAS ALLOWED THE RAILROAD TO RUN LONGER TRAINS CONRAIL RECENTLY TOOK BACK 90 LOCOMOTIVES IT HAD LEASED TO A WESTERN RAILROAD AND IT IS HIRING 85 NEW TRAIN CREW MEMBERS AND MAY HIRE MORE IN THE NEXT FEW MONTHS A CONRAIL OFFICIAL SAID THE SEVERE WINTER WILL HAVE A SIGNIFICANT ADVERSE EFFECT ON EARNINGS IN THE FIRST QUARTER BUT I DON'T THINK IT WILL THROW US INTO THE RED ON OPERATIONS BEFORE A PRETAX CHARGE OF 75 MILLION TO 85 MILLION ASSOCIATED WITH AN EARLY RETIREMENT PROGRAM IN THE YEAREARLIER QUARTER CONRAIL HAD EARNINGS OF 46 MILLION OR 52 CENTS A SHARE EXCLUDING EXTRAORDINARY CHARGES FOR ACCOUNTING CHANGES SOME SHIPPERS SYMPATHIZE WITH CONRAIL BECAUSE THEIR OWN OPERATIONS WERE HURT BY THE SEVERE WINTER WE ALL SEEMED TO EXPERIENCE THE SAME STORMS TO THE SAME LEVEL SAID KATHY WRIGHT DIRECTOR OF GLOBAL DISTRIBUTION AT DUPONT CO BUT OTHER SHIPPERS AND SHORTLINE RAILROADS COMPLAIN THAT CONRAIL'S INTENSE FOCUS ON SQUEEZING PRODUCTIVITY FROM FEWER ASSETS LEFT IT WITH LITTLE FLEXIBILITY WHEN FACED WITH TRAFFIC GROWTH AND DIFFICULT WEATHER THEY DOWNSIZED AND MAYBE THEY DOWNSIZED TOO MUCH SAID CLIFFORD HOPLER TRANSPORTATION MANAGER OF SUBURBAN PROPANE WHICH IS OWNED BY HANSON PLC FACED WITH DELAYED SHIPMENTS ON CONRAIL THIS WINTER SUBURBAN PROPANE TURNED TO TRUCKS FOR CERTAIN SHIPMENTS PHILIP LIGHT PRESIDENT OF THE WINCHESTER & WESTERN RAILROAD FAULTS CONRAIL FOR SHUTTING DOWN MUCH OF ITS BIG ENOLA SWITCHING YARD NEAR HARRISBURG IN OCTOBER FREIGHT CARS THAT WERE SORTED BY THE YARD WERE REROUTED TO OTHER CONRAIL YARDS ADDING SEVERAL DAYS TO THE TRANSIT TIME OF SOME FREIGHT HANDLED JOINTLY BY THE TWO RAILROADS HE SAID THEY ARE SAVING SOME MONEY BUT IT IS HURTING SOME OTHER PEOPLE SAID MR LIGHT CONRAIL OFFICIALS DEFEND THE MOVE DAVID LEVAN CONRAIL'S EXECUTIVE VICE PRESIDENT SAID THE COMPANY SOUGHT TO AVOID THE LARGE CAPITAL EXPENDITURE TO BRING THE OUTMODED YARD IN LINE WITH ITS MORE MODERN FACILITIES BUT MR LEVAN SAID CONRAIL WILL INCREASE ITS SPENDING ON LOCOMOTIVES AND TRAIN CREWS TO AVOID A REPEAT OF THIS WINTER'S RAIL DISRUPTIONS 9403180091 940318 CLINTON EDUCATION MEASURE IS APPROVED BY CONFEREES WASHINGTON A HOUSESENATE CONFERENCE COMMITTEE APPROVED PRESIDENT CLINTON'S MAJOR EDUCATION PACKAGE FAVORING PROVISIONS THAT GIVE SCHOOL DISTRICTS GREATER FLEXIBILITY THE 422 MILLION PLAN CALLED GOALS 2000 WOULD ESTABLISH EIGHT NATIONAL EDUCATION GOALS AND SET UP A PANEL TO DEVISE MODEL ACADEMIC AND TESTING STANDARDS THE COMPROMISE VERSION OF THE BILL STILL NEEDS TO BE PASSED BY THE HOUSE AND SENATE UNLESS THEY DO SO BY THE END OF NEXT WEEK THE BILL'S 105 MILLION APPROPRIATION FOR THIS FISCAL YEAR WILL EXPIRE THE CONFEREES SETTLED DIFFERENCES BETWEEN THE HOUSE AND SENATE VERSIONS OF THE BILL MAINLY BY MAKING THE LEGISLATION LESS PRESCRIPTIVE THEY DECIDED STATES DIDN'T NEED TO DEVISE SOCALLED OPPORTUNITYTOLEARN STANDARDS IN THEIR EDUCATIONREFORM PLANS BUT CAN SIMPLY DESCRIBE HOW THEY'LL ENSURE STUDENT ACCESS TO SUCH THINGS AS UPTODATE CURRICULA THE CONFEREES ALSO INCLUDED A DEMONSTRATION PROJECT THAT WILL ALLOW SIX STATES TO WAIVE FEDERAL REGULATIONS THAT IMPEDE LOCAL SCHOOL EFFORTS AT REFORM GOALS 2000 ENCOURAGES SCHOOL REFORM BUT DOESN'T MANDATE ANYTHING IF STATES WANT TO GET FEDERAL MONEY TO IMPROVE THEIR SCHOOLS THEY MUST SUBMIT COMPREHENSIVE PLANS TO THE EDUCATION DEPARTMENT THAT EXPLAIN HOW THEY WOULD REACH THE NATIONAL EDUCATION GOALS 9403180090 940318 US INDICTS THREE PEOPLE LINKED TO GE BRIBERY CASE CINCINNATI A FEDERAL GRAND JURY HERE INDICTED THREE INDIVIDUALS IN CONNECTION WITH A BRIBERY SCHEME AT GENERAL ELECTRIC CO THAT WAS AIMED AT INFLUENCING THE ISRAELI GOVERNMENT INTO PURCHASING GE MILITARY JET ENGINES ONE OF THE MEN INDICTED WAS HERBERT STEINDLER 55 YEARS OLD WHO WAS A GE INTERNATIONAL SALES MANAGER AT THE TIME MR STEINDLER WHO WAS FIRED BY GE IN 1991 COULDN'T BE REACHED FOR COMMENT OTHERS INDICTED WERE RAMI DOTAN 49 A FORMER ISRAELI AIR FORCE GENERAL WHO OVERSAW THE PURCHASE AND MAINTENANCE OF AIRCRAFT ENGINES AND HAROLD KATZ 72 AN ATTORNEY IN ISRAEL WHO LAUNDERED THE FUNDS THROUGH EUROPEAN BANK ACCOUNTS THE INDICTMENTS WERE ANNOUNCED BY THE US JUSTICE DEPARTMENT GE HAS ALREADY PLEADED GUILTY AND IN 1992 THE FAIRFIELD CONN COMPANY PAID 69 MILLION IN FINES AND PENALTIES TO SETTLE CHARGES OF CONSPIRACY MONEY LAUNDERING AND FAILURE TO MAKE AND KEEP ACCURATE BOOKS AND RECORDS THE SCHEME INVOLVED DIVERTING FUNDS FROM DEFENSE CONTRACTS BETWEEN GE AND THE GOVERNMENT OF ISRAEL WHICH WERE FINANCED UNDER A US FOREIGN MILITARYAID PROGRAM ACCORDING TO THE INDICTMENT BETWEEN 1984 AND 1990 ABOUT 11 MILLION WAS DIVERTED 9403180089 940318 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS ONE OF THE COUNTRY'S BEST KNOWN TAX LAW FIRMS KOSTELANETZ RITHOLZ TIGUE & FINK HAS BROKEN UP IN A NASTY FIGHT OVER MONEY TO SOME LAWYERS THIS PARTICULAR TALE OF SOUND AND FURY SIGNIFIES WHAT CAN HAPPEN WHEN A FIRM OUTLASTS ITS FORCEFUL FOUNDERS AND DOESN'T HAVE A MECHANISM FOR ALLOCATING POWER AND PROFITS TO THE NEXT GENERATION LIKE THE LARGER SHEA & GOULD EARLIER THIS YEAR KOSTELANETZ RITHOLZ WAS TORN APART BY INTERNAL SQUABBLING AND NOT BY ANY FINANCIAL DIFFICULTY IT'S ANOTHER EXAMPLE OF HOW FRAGILE LAW FIRMS ARE AS INSTITUTIONS SAYS LAWRENCE FELD A FORMER KOSTELANETZ RITHOLZ PARTNER WHO LEFT FOR A LARGER FIRM FOUR YEARS AGO WITHOUT THE ORIGINAL LEADERSHIP THERE WASN'T ENOUGH HOLDING THE FIRM TOGETHER AND EGO AND GREED OVERCAME THE NOTION THAT WE OUGHT TO TRY AND WORK TOGETHER AND PRESERVE WHAT WE HAVE HE SAYS THE KOSTELANETZ RITHOLZ COLLAPSE IS ALSO A CASE STUDY OF THE PROBLEMS THAT CAN PLAGUE SPECIALIZED FIRMS IN WHICH PARTNERS COMPETE FOR THE SAME KIND OF BUSINESS IT BECOMES DIFFICULT BECAUSE THEY'RE ALL SORT OF DRAWING FROM THE SAME WELL SAYS LEONARD ROSENBLATT A FORMER KOSTELANETZ RITHOLZ ASSOCIATE AND NOW A NEW YORK SOLO PRACTITIONER EVER SINCE ITS FOUNDING IN 1946 KOSTELANETZ RITHOLZ FOCUSED ON WHAT ITS PARTNERS DELICATELY REFER TO AS IRS CONTROVERSY WORK THE DEFENSE OF CIVIL OR CRIMINAL TAX CASES CLIENTS GENERALLY CAME TO THE FIRM IN EXTREMIS REFERRED BY ACCOUNTANTS OR CORPORATE LAWYERS WHO HAD BEEN CONTACTED BY THE INTERNAL REVENUE SERVICE SOMETIMES DISPUTES WOULD ARISE OVER WHICH PARTNER WOULD BE CREDITED WITH BRINGING IN A PARTICULAR CLIENT BUT THESE INCIPIENT INTERNAL BATTLES WERE QUICKLY PUT DOWN IN THE EARLY YEARS BY BORIS KOSTELANETZ WHO WAS SOON JOINED BY THE HARDCHARGING JULES RITHOLZ WHO RULED THE FIRM AUTOCRATICALLY AFTER THE AGING PATRIARCH STEPPED ASIDE IN THE MID1980S DESPITE ITS SMALL SIZE ABOUT 20 ATTORNEYS ON AVERAGE KOSTELANETZ RITHOLZ WAS ABLE TO BUILD A NATIONAL REPUTATION AND A VIRTUAL TRADEMARK ATTACHED TO ITS NAME SOME SAY MR KOSTELANETZ NOW 83 YEARS OLD IS BETTER KNOWN IN THE TAX BAR THAN HIS FAMOUS OLDER BROTHER ANDRE THE LATE CONDUCTOR AMONG THE FIRM'S WELLPUBLICIZED RECENT SUCCESSES IS THE 1992 ACQUITTAL OF THE FORMER LAW PARTNER OF SEN ALFONSE D'AMATO'S BROTHER ON CHARGES OF TAX EVASION FAMOUS CLIENTS HAVE INCLUDED FORMER NEW YORK MAYOR DAVID DINKINS AND THE LATE MUSICIAN MILES DAVIS BUT AFTER MR RITHOLZ DIED OF CANCER IN NOVEMBER PROBLEMS BEGAN TO RISE TO THE SURFACE ACCORDING TO ONE PARTNER THE FIRM BEGAN TO FEEL THE PINCH OF ESCALATION CLAUSES IN ITS EXPENSIVE LEASE AND THE THREEMEMBER EXECUTIVE COMMITTEE MADE SUCH UNPOPULAR COSTCUTTING DECISIONS AS FIRING SUPPORT STAFF AND ELIMINATING THE PERK OF FREE SODA BAD CAME TO WORSE TWO MONTHS AGO WHEN THE TROIKA DISAGREED ABOUT HOW TO DIVIDE LAST YEAR'S PROFITS SCREAMING MATCHES SHATTERED THE FIRM'S NORMALLY SEDATE CONFERENCE ROOMS ABOVE THE BRIDGES OF LOWER MANHATTAN A FEW WEEKS AGO EXECUTIVECOMMITTEE MEMBER ROBERT S FINK WHO HAD BEEN WITH THE FIRM FOR 25 YEARS INFORMED HIS PARTNERS THAT HE PLANNED TO START HIS OWN FIRM LAST WEEK HE FIRED OFF AN ANGRY INTERNAL MEMO AFTER JOHN J TIGUE JR A FELLOW COMMITTEE MEMBER PUBLICLY RELEASED THE NEWS OF HIS OWN DEPARTURE FIRST I WAS OUTRAGED MR FINK SAYS ALL I'M PREPARED TO SAY IS THAT I HAD AN OPPORTUNITY FOR A BETTER JOB MR TIGUE SAYS MR FINK 51 YEARS OLD CLAIMS HE DECIDED TO LEAVE AFTER MR TIGUE AND THE OTHER MEMBER OF THE EXECUTIVE COMMITTEE PETER DRISCOLL INSISTED UPON PAYING THEMSELVES MORE THAN HE BELIEVED THEY DESERVED THEY DIDN'T BELIEVE IN INVESTING IN THE NEXT GENERATION SAYS MR FINK WHO DISCUSSED THE BREAKUP WHILE PROPPING UP HIS FEET ON CARDBOARD BOXES IN HIS PACKEDUP OFFICE HE'S PLANNING TO MOVE WITHIN THE MONTH TAKING ABOUT A HALFDOZEN OTHER LAWYERS WITH HIM MR TIGUE HAS SAID HE WILL JOIN THE WHITECOLLAR CRIMINAL DEFENSE BOUTIQUE MORVILLO ABRAMOWITZ GRAND IASON & SILBERBERG MR DRISCOLL SAYS HE HASN'T DECIDED WHERE HE'S GOING MR TIGUE WON'T RESPOND PUBLICLY TO MR FINK'S CLAIMS NO USEFUL PURPOSE WOULD BE SERVED BY A PUBLIC AIRING OF OUR FIRM'S INTERNAL AFFAIRS HE SAYS MR DRISCOLL ALSO DECLINES COMMENT AS IN A DIVORCE THE REAL STORY IS COMPLICATED AND ITS RECOUNTING VARIES LIKE THE TALE OF RASHOMON BUT ONE LESSON SEEMS CLEAR A NEAR HALFCENTURY OF HISTORY MIGHT HAVE BEEN EXTENDED IF THE FIRM HAD ESTABLISHED A MORE FORMAL SYSTEM OF GOVERNANCE LIKE MANY SMALL LAW FIRMS KOSTELANETZ RITHOLZ NEVER SET DOWN PRINCIPLES OF PROFIT ALLOCATION AS A RESULT SOME CURRENT AND FORMER PARTNERS SAY THERE CAME TO BE TOO MUCH FOCUS ON WHO BROUGHT IN CLIENTS AND NOT ENOUGH ATTENTION TO OTHER FACTORS BECAUSE PARTNERS AT BOUTIQUE LAW FIRMS VIE WITH EACH OTHER AND NOT JUST OUTSIDE COMPETITORS THERE NEEDS TO BE A MECHANISM TO QUELL INTERNAL RIVALRIES SAY LAWYERS AT SUCCESSFUL SMALL FIRMS SOME HAVE DONE JUST THAT ENABLING THEM TO SURVIVE THE PASSING OF THE FIRST GENERATION AND EVEN TO GROW FOR EXAMPLE THE NEW YORK INTELLECTUALPROPERTYLAW BOUTIQUE KENYON & KENYON REQUIRES EACH PARTNER TO GIVE HIS OR HER VIEW OF HOW PROFIT SHARES SHOULD BE ALLOCATED AMONG PARTNERS ON A PERCENTAGEPOINT BASIS THEN ALL THE PARTNERS' PROPOSALS ARE AVERAGED TO DETERMINE THE ACTUAL DIVISION OF PROFITS TEN YEARS AGO PENNIE & EDMONDS ANOTHER NEW YORK INTELLECTUALPROPERTY BOUTIQUE ABOLISHED A SYSTEM THAT GAVE A TINY COTERIE OF ITS SENIOR PARTNERS VIRTUALLY TOTAL CONTROL OVER THE FIRM IN ITS PLACE THE PENNIE FIRM ESTABLISHED A ROTATING COMPENSATION COMMITTEE WHICH CONSIDERS HOURLY BILLINGS AND OTHER OBJECTIVE FACTORS IN SETTING SALARIES 9403180087 940318 TWENTIETH CENTURY INSURANCE UNIT'S QUAKE COSTS RISE BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL THE PARENT COMPANY OF 20TH CENTURY INSURANCE CO SAID ITS CLAIMS COSTS FROM THE CALIFORNIA EARTHQUAKE WILL REACH ABOUT 325 MILLION MAKING THE CATASTROPHE BY FAR THE COSTLIEST IN THE COMPANY'S 36YEAR HISTORY TWENTIETH CENTURY INDUSTRIES SAID IT EXPECTS TO RECORD A FIRSTQUARTER LOSS AFTER A QUAKERELATED CHARGE OF 1617 MILLION OR 315 A SHARE THE COMPANY IS BASED IN THE LOS ANGELES SUBURB OF WOODLAND HILLS A FEW MILES FROM THE EPICENTER OF THE JAN 17 QUAKE IN THE YEAREARLIER QUARTER THE COMPANY POSTED NET INCOME OF 239 MILLION OR 47 CENTS A SHARE THE EARTHQUAKE DAMAGE IS MORE SEVERE AND WIDESPREAD AND THE NUMBER OF CLAIMS REPORTED IS GREATER THAN ORIGINALLY ESTIMATED SAID NEIL H ASHLEY CHIEF EXECUTIVE OFFICER A MONTH AGO THE COMPANY ESTIMATED ITS QUAKE CLAIMS COSTS AT ABOUT 160 MILLION AND THE CORRESPONDING FIRSTQUARTER LOSS AT ABOUT 54 MILLION TRADING IN THE COMPANY'S STOCK WAS HALTED ON THE NEW YORK STOCK EXCHANGE PENDING THE ANNOUNCEMENT BEFORE THE HALT WHICH CAME LATE IN THE SESSION THE STOCK WAS DOWN 25 CENTS AT 25125 THE SHARES DIDN'T RESUME TRADING WHILE THE COMPANY'S CLAIMSCOST ESTIMATE DOUBLED ITS ANTICIPATED LOSS TRIPLED REFLECTING EXHAUSTION OF ALL OF ITS 75 MILLION OF REINSURANCE SAID RICHARD DINON SENIOR VICE PRESIDENT TO RESTORE THE REINSURANCE PROTECTION THE COMPANY MUST PAY AN ADDITIONAL 13 MILLION REINSURERS TAKE A PORTION OF AN INSURER'S PREMIUMS IN RETURN FOR SHARING THEIR RISK MR DINON SAID THE COMPANY REMAINS FINANCIALLY STRONG DESPITE THE SUBSTANTIAL CHARGE THAT WILL WIPE OUT 26 OF NET WORTH AT THE END OF LAST YEAR THE COMPANY HAD CAPITAL AND SURPLUS OF 6552 MILLION WE'RE STILL VERY RESPONSIBLY LEVERAGED EVEN AFTER THIS MR DINON SAID THIS EVENT FAR SURPASSES IN MAGNITUDE ANYTHING THE COMPANY HAS EXPERIENCED BEFORE HE ADDED THE COMPANY'S OWN HEADQUARTERS BUILDING SUSTAINED DAMAGE FROM THE TEMBLOR FORCING MANAGERS TO TEMPORARILY SET UP TENTS AND TABLES IN THE PARKING LOT REPAIRS ARE STILL TAKING PLACE MR DINON SAID THE COMPANY HASN'T YET CALCULATED THE TOTAL DAMAGE TO ITS OPERATIONS WHERE THIS QUAKE HIT WAS JUST ABOUT OUR WORSTCASE SCENARIO MR DINON SAID THE COMPANY EVALUATES ITS EXPOSURES BASED ON WELLACCEPTED MODELS BUT THOSE MODELS DIDN'T WORK WELL IN THIS INSTANCE THE COMPANY'S SUBSIDIARIES WRITE HOMEOWNERS AUTOMOBILE AND PERSONAL LIABILITY INSURANCE 9403180086 940318 KEMPER'S BOARD SPURNS PROPOSAL BY GE CAPITAL PRESSURE ON TARGET GROWS AS HOLDERS FAVOR SALE MATING DANCE' IS SEEN BY STEVEN LIPIN AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL KEMPER CORP'S DIRECTORS UNANIMOUSLY REJECTED THE 22 BILLION BID FROM GE CAPITAL CORP AMID INTENSIFYING PRESSURE FROM SHAREHOLDERS TO SELL THE COMPANY IN A STINGING LETTER TO GENERAL ELECTRIC CO CHAIRMAN JOHN F WELCH KEMPER CHAIRMAN DAVID MATHIS ACCUSED THE GE UNIT OF STEALING KEMPER WITH A LOWBALL' PROPOSAL HE SUGGESTED THAT GE IS A CORPORATE RAIDER AND WARNED MR WELCH TO ATTEND YOUR OWN BUSINESS IN DEFENDING THE DECISION MR MATHIS REITERATED THAT STOCKHOLDERS OF THE MONEY MANAGEMENT BROKERAGE AND INSURANCE COMPANY ARE BEST SERVED BY PROVIDING CURRENT MANAGEMENT WITH THE OPPORTUNITY TO REALIZE KEMPER'S TREMENDOUS UPSIDE POTENTIAL WHILE THE MOVE WAS WIDELY EXPECTED THE HARSH LANGUAGE COULD ALSO BE A TACTICAL MOVE TO FORCE FAIRFIELD CONNBASED GE TO UP THE ANTE ON ITS 55ASHARE OFFER SOME INVESTORS SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY KEMPER'S SHARES ROSE 1 TO 6075 ALTHOUGH THE ANNOUNCEMENT WAS MADE AFTER THE MARKETS CLOSED THE STOCK IS UP 49 SINCE THE BID WAS ANNOUNCED GE'S STOCK FELL 75 CENTS TO 103 ALSO ON THE BIG BOARD EVERYONE AGREES THE BID IS TOO LOW SAID ONE TRADER WHO BELIEVES KEMPER BASED IN LONG GROVE ILL IS OPEN TO HIGHER OFFERS THIS IS THE NORMAL MATING DANCE I THINK THIS IS JUST TACTICS SAID ROBERT GENSLER AN INSURANCE ANALYST AT T ROWE PRICE ASSOCIATES WHICH OWNS ABOUT 900000 SHARES OF KEMPER STOCK I HOPE THAT GE BIDS HIGHER GE IS NOT A CORPORATE RAIDER IT'S A WONDERFUL PURCHASE FOR GE AND IT WILL CREATE VALUE FOR KEMPER SHAREHOLDERS ALTHOUGH KEMPER EXECUTIVES COULD LOSE THEIR JOBS IN A GE TAKEOVER MR MATHIS DENIED IN HIS LETTER THAT MANAGEMENT HAD AN INTEREST IN ENTRENCHING ITSELF FOUR OF KEMPER'S 13 BOARD MEMBERS ARE CURRENTLY EXECUTIVES OF THE COMPANY AND A FIFTH IS A FORMER CHIEF EXECUTIVE KEMPER'S RESPONSE NOW PUTS THE ONUS ON GE TO MAKE A FORMAL TENDER FOR KEMPER SHARES AT THE CURRENT 55ASHARE PRICE OR TO UP THAT PRICE GE MIGHT ALSO TAKE THE BATTLE DIRECTLY TO SHAREHOLDERS IN THE FORM OF A PROXY FIGHT BUT GE IS HOPING THAT ANGRY SHAREHOLDERS WILL PRESSURE KEMPER TO SURRENDER ALBEIT PERHAPS AT A HIGHER PRICE GE HAD NO IMMEDIATE REACTION TO KEMPER'S REJECTION THE BOARD MUST KNOW THE HANDWRITING IS ON THE WALL SAID RICHARD PIKE AN ANALYST AT THE MONEYMANAGEMENT FIRM OF CHANCELLOR CAPITAL MANAGEMENT WHICH OWNED NEARLY 700000 SHARES EARLIER THIS WEEK IN THE FINAL ANALYSIS MONEY TALKS STOCKHOLDERS ARE PRAISING KEMPER'S MANAGEMENT FOR TURNING THE COMPANY AROUND AND SHEDDING DISPARATE OPERATIONS AT THE SAME TIME SHAREHOLDERS WHO WERE INTERVIEWED SAY MANAGEMENT PROBABLY WON'T BE ABLE TO RAISE THE STOCK'S VALUE TO LEVELS THAT CAN BE REACHED THROUGH AN ACQUISITION THEY SAY IT'S TIME FOR MANAGEMENT TO SELL THE COMPANY I DON'T THINK REMAINING INDEPENDENT IS AN OPTION SAID MR PIKE TO REMAIN INDEPENDENT KEMPER WILL HAVE TO ARGUE THAT UNLESS A CASE CAN BE MADE THAT INVESTORS ARE DEFINITELY BETTER OFF WITH AN ACQUISITION THEN THE COMPANY'S OWN STRATEGY WILL BETTER ENHANCE SHAREHOLDER VALUE OBVIOUSLY IF THEY REJECT THE OFFER THEY'RE GOING TO HAVE TO COME BACK WITH SOME KIND OF WAY TO ENHANCE THE VALUE OF THE STOCK SAID LUTHER JONES MANAGER OF CORPORATE AFFAIRS FOR THE FLORIDA STATE BOARD OF ADMINISTRATION WHICH OWNS 457000 SHARES OF KEMPER AS WELL AS A BIG STAKE IN GE IF KEMPER CONTINUES TO STAND ALONE IT APPEARS THAT IT IS DEALING WITH STRATEGIC ISSUES BUT NOT SHAREHOLDER VALUES BUT INVESTORS ARE UNLIKELY TO SIT STILL ALREADY SOUTHEAST ASSET MANAGEMENT A MEMPHIS TENNBASED MONEYMANAGEMENT FIRM THAT OWNS OVER 8 OF KEMPER'S SHARES SAID IN A REGULATORY FILING THAT IT MAY SEEK TO MEET WITH MANAGEMENT OR THE BOARD MR JONES ANTICIPATES THAT BIG SHAREHOLDERS LIKE HIMSELF WILL MAKE HEAVY USE OF THE LIBERALIZED PROXY RULES FOR SHAREHOLDER COMMUNICATION TO MAKE CLEAR THAT THEY WANT STOCKPRICE APPRECIATION CONSIDERED AS A FACTOR SPECIFIC SHAREHOLDER ACTIONS WILL BE A MAJOR ISSUE FOR US TO LOOK AT HE SAID MOST INVESTORS SAY THEY EXPECT THE COMPANY WILL BE SOLD FOR MORE THAN 55 A SHARE SINCE GE CAPITAL SAID IT MIGHT RAISE ITS BID IF IT COULD TAKE A PEEK AT THE COMPANY'S BOOKS I DON'T THINK THEY CAN GET IT AT 55 ALTHOUGH THAT'S HIGHER THAN STOCK EVER SOLD FOR SAID MR PIKE AS AN OPENER IT'S A SERIOUS BID AND WILL PROBABLY GO HIGHER THE OPTIONS ARE TO COME TO TERMS WITH GE OR TO FIND ANOTHER BUYER THAT WOULD BE WILLING TO PAY A FULL PRICE BRIAN WALTON SENIOR EQUITY ANALYST AT NATIONSBANK CORP WHOSE INVESTMENTMANAGEMENT UNIT OWNS SUBSTANTIALLY MORE THAN HALF A MILLION KEMPER SHARES SAID WE HAVE A LOT OF CONFIDENCE THAT MANAGEMENT AND THE BOARD WILL CONTINUE TO ENHANCE IN THE HIGHEST POSSIBLE WAY SHAREHOLDER VALUE A COMBINATION WITH AN ENTITY SUCH AS GE CAPITAL DOES MAKE SECULAR SENSE FROM THE FRAMEWORK OF THE FINANCIAL SERVICES INDUSTRY MR WALTON SAID THE BUSINESS OF ASSET MANAGEMENT IS A BOOMING BUSINESS BUT THAT THERE ARE VERY FEW SUCCESSFUL PLAYERS WITH BRAND NAMES AND DISTRIBUTION NETWORKS THAT'S WHY WE FEEL THE VALUE OF KEMPER IS STILL SO LOW HE SAYS BUT HE ADDS THAT MANAGEMENT AT KEMPER HAS DONE AN OUTSTANDING JOB 9403180085 940318 INTERNATIONAL WORLD WIRE COMPILED BY CATHERINE BOLGAR THE GREEK POLITICIAN WHO HEADED MARATHON EUROPEAN UNION MEMBERSHIP TALKS WITH AUSTRIA FINLAND SWEDEN AND NORWAY NOW SAYS THE DECISION TO ENLARGE THE 12MEMBER EU WAS WRONG THEODOROS PANGALOS GREECE'S MINISTER FOR EUROPEAN AFFAIRS SAID THE DECISION TO ALLOW THE FOUR COUNTRIES TO JOIN THE EU SHOULDN'T HAVE BEEN MADE SO SOON NOW THAT I HAVE DONE MY DUTY I HONESTLY WANT TO SAY THAT THIS DECISION WAS WRONG MR PANGALOS SAID ADDING THAT HE WOULD HAVE PREFERRED TO WAIT UNTIL THE END OF THE DECADE TO EXPAND EU MEMBERSHIP THE EU HAS YET TO FIND A COMPROMISE ON THE DIFFICULT ISSUE OF VOTING RIGHTS IN ITS GOVERNING COUNCIL MR PANGALOS LAMBASTED BRITAIN AND SPAIN WHICH OPPOSE GIVING THE NEW MEMBERS VOTING POWER THAT WOULD CHANGE THE CURRENT METHOD FOR BLOCKING LEGISLATION ABU DHABI IS SEEKING INTERNATIONAL BIDS FOR THE CONSTRUCTION OF ONE OF THE MIDDLE EAST'S LARGEST MOSQUES THE MOSQUE ESTIMATED TO COST 150 MILLION WILL BE BUILT IN THE PERSIAN GULF EMIRATE CLOSE TO A BRIDGE THAT LINKS ABU DHABI ISLAND TO THE ARABIAN PENINSULA ITS MAIN PRAYER HALL WILL BE ABLE TO HOLD 7000 WORSHIPERS CONSTRUCTION IS TO BEGIN IN A FEW MONTHS FOUR MILLION SQUARE FEET OF ISLAMICSTYLE GARDENS WATER FOUNTAINS AND WALKWAYS WILL ENCIRCLE THE MOSQUE WHICH WILL HAVE A TOTAL AREA OF 555555 SQUARE FEET CHINA'S CENTRAL BANK IS INVESTIGATING RECENT INCREASES IN PRICES CHARGED TO FOREIGNERS THE EMERGENCE OF A TWOTIER PRICE SYSTEM ONE PRICE FOR CHINESE AND A PRICE AT LEAST 50 HIGHER FOR FOREIGNERS FOLLOWED THE CENTRAL BANK'S MOVE JAN 1 TO PHASE OUT A SPECIAL CURRENCY FOR FOREIGNERS THE SPECIAL CURRENCY WAS WORTH MORE IN DOLLARS THAN THE YUAN USED BY ORDINARY CHINESE BUT CHINA OFFICIALLY TREATED THE TWO CURRENCIES AS EQUAL IN VALUE CHINESE AIRLINES INSURANCE COMPANIES TELEPHONE COMPANIES LANDLORDS AND OTHERS HAVE DEMANDED THAT FOREIGNERS WHO NOW ALSO USE YUAN PAY 50 MORE THAN CHINESE CLIENTS JAPAN HAS DRAFTED A PROPOSAL TO EASE CURBS ON FOREIGN LAWYERS WISHING TO PRACTICE IN THE COUNTRY THE DRAFT BILL WOULD LET JAPANESE AND FOREIGN LAWYERS RUN JOINT LAW FIRMS AND PROVIDE LEGAL CONSULTATION SERVICES UNDER CERTAIN CONDITIONS IT WOULD CONTINUE TO BAR FOREIGN LAWYERS FROM ARGUING CRIMINAL OR CIVIL CASES IN JAPANESE COURTS THE GOVERNMENT PLANS TO INTRODUCE THE AMENDMENT IN PARLIAMENT IN EARLY APRIL IF THE MEASURE IS APPROVED IT WILL TAKE EFFECT WITHIN A YEAR THE US GOVERNMENT DEMANDED THAT 70 JAPANESE CONSTRUCTION AND OTHER FIRMS PAY MORE THAN 11 BILLION YEN 104 MILLION IN PENALTIES FOR ALLEGEDLY RIGGING BIDS ON CONSTRUCTION PROJECTS AT A US NAVAL AIR STATION SOUTHWEST OF TOKYO THE FIRMS ARE ACCUSED OF INFLATING CONTRACT FEES FOR THE CONSTRUCTION PROJECTS FROM 1984 TO 1990 THROUGH A CONTRACTORS' GROUP AT THE NAVAL STATION IN ATSUGI THE JAPAN FEDERATION OF CONSTRUCTION CONTRACTORS DENIED THAT BIDRIGGING OCCURRED SAYING THE FIRMS MET ONLY TO DISCUSS WORK QUALITY RECORD NUMBERS OF TOURISTS ARE FLOCKING TO THE VIETNAMESE VILLAGE WHERE US TROOPS KILLED ABOUT 350 CIVILIANS DURING THE VIETNAM WAR IN THE MY LAI MASSACRE SINCE THE 25TH ANNIVERSARY OF THE MASSACRE LAST YEAR MORE THAN 7000 PEOPLE HAVE VISITED SON MY VILLAGE MORE THAN HALF OF THEM WERE FOREIGN VISITORS WHOSE NUMBERS INCREASED FOURFOLD FROM THE PREVIOUS YEAR THE NUMBER OF VIETNAMESE VISITORS DOUBLED MY LAI IS A COMMUNE IN SON MY IN WHAT WAS THEN SOUTH VIETNAM WHERE US SOLDIERS HUNTING FOR VIET CONG COMMUNIST GUERRILLAS COMMITTED THE MASSACRE ON MARCH 16 1968 SEVERAL THOUSAND STUDENTS AND MEMBERS OF LABOR UNIONS MARCHED THROUGH PARIS AND OTHER FRENCH CITIES UNDER TIGHT POLICE SUPERVISION WAVING BANNERS DENOUNCING PRIME MINISTER BALLADUR'S PROPOSALS TO ALLOW EMPLOYERS TO PAY LESS THAN THE MINIMUM WAGE FOR ENTRYLEVEL JOBS IN PARIS WHERE POLICE ESTIMATED ABOUT 32000 DEMONSTRATORS GATHERED A NUMBER OF CARS WERE TIPPED OVER AND BURNED BY YOUTHS BEFORE RIOT POLICE INTERVENED HAVING ALREADY BACKED DOWN IN RECENT MONTHS IN THE FACE OF ANGRY AIRLINE WORKERS FISHERMEN AND TEACHERS SENIOR GOVERNMENT MINISTERS WOULDN'T BUDGE ON THE JOBS ISSUE BUT MR BALLADUR SENT A MORE CONCILIATORY MESSAGE IN AN OPEN LETTER TO FRENCH YOUTHS DEMONSTRATORS HAD FEW NEW SUGGESTIONS ON HOW TO CUT FRANCE'S RECORD 12 UNEMPLOYMENT RATE WE WANT A GUARANTEED JOB WHAT'S THE POINT IN STUDYING IF YOU'RE GOING TO BE OUT OF WORK SAID ONE 19YEAROLD HIGHSCHOOL STUDENT ITALY'S LEANING TOWER OF PISA HAS STARTED STRAIGHTENING UP AND VISITORS COULD BE ALLOWED TO CLIMB ITS 294 STEPS AGAIN COUNTERWEIGHTS PLACED AT THE BASE OF THE 14THCENTURY MARBLE TOWER HAVE PULLED IT HALF AN INCH CLOSER TO BEING VERTICAL THE EUROPEAN COURT OF JUSTICE TOLD SPAIN TO END ITS POLICY OF CHARGING FOREIGNERS TO VISIT STATE MUSEUMS WHILE LETTING SPANISH CITIZENS IN FREE 9403180084 940318 HEALTH CARE REPORT FROM THE TRENCHES CLINTON PLAN WOULD HAVE CRIPPLED ME BY JOSEPH L ANGELETTI IF THE CLINTON HEALTH CARE PLAN HAD BEEN IN PLACE DURING THE PAST THREE YEARS I WOULD BE IN A WHEELCHAIR TODAY AND WELL ON MY WAY TO A PREMATURE DEMISE INSTEAD TODAY I AM A REASONABLY HEALTHY MAN I PLAY BASKETBALL SKI HIKE AND BICYCLE WHILE MY EXPERIENCES ARE UNUSUAL SOME MIGHT SAY UNIQUE THEY REVEAL THE NOTSOOBVIOUS BENEFITS FOR EVERYONE OF A SYSTEM CHARACTERIZED BY FREE CHOICE EXTENSIVE USE OF HIGHTECHNOLOGY INNOVATIONS AND A WEALTH OF SPECIALIZED MEDICAL TRAINING MY TRAVAILS STARTED AT AGE 58 WITH PECULIAR BURNING/COLD SENSATIONS IN BOTH FEET AFTER ROUTINE TESTS A LOCAL INTERNIST ATTRIBUTED THE PROBLEM TO AN ANTIBIOTIC DRUG REACTION UNFORTUNATELY EVEN WITHOUT THE ANTIBIOTIC THE SYMPTOMS PERSISTED AND DURING THE NEXT FEW MONTHS I EXPERIENCED INCREASING LEG WEAKNESS SOON I COULD NO LONGER SKI AND WOULD FALL WHILE WALKING IT BECAME CLEAR THAT WHATEVER WAS WRONG WAS INSIDIOUSLY PROGRESSIVE CONSULTATIONS WITH SEVERAL NEUROLOGISTS WERE UNREWARDING GRADUALLY MY WIFE AND I REALIZED THAT MOST PROBABLY NO SINGLE DOCTOR WOULD FINGER THE CAUSE SO FOR MONTHS WE SOUGHT A DIAGNOSIS MORE OR LESS SIMULTANEOUSLY FROM FOUR DIFFERENT INTERNISTS AND SEVERAL NEUROLOGISTS WE READ AND STUDIED MEDICAL LITERATURE CONTINUED THE CONSULTATIONS AND ASSEMBLED AND ELIMINATED ONE BY ONE A LIST OF NEARLY 50 POSSIBLE CAUSES WE AND MY DOCTORS TRIED AT FIRST TO RULE OUT THE MORE LIKELY CAUSES EG DIABETES VARIOUS POISONS SPINAL DISK PROBLEMS LYME DISEASE ETC WE FOUND MOST PHYSICIANS WERE UNMETHODICAL IN GOING DOWN THE MEDICAL FAULT TREE THEY PREFERRED TO PURSUE THEIR FAVORITE THEORIES SEVERAL IN FACT SUGGESTED MY PROBLEM WAS EMOTIONAL OR THAT I WAS TOO OLD TO SKI TWO DIFFERENT NEUROLOGISTS INSISTED I HAD MULTIPLE SCLEROSIS WHILE I WAS GRATEFUL FOR ANY DIAGNOSIS EVEN A FAULTY ONE WE WERE ABLE TO RULE OUT MS FOR VARIOUS REASONS DURING THIS PROCESS I HAD MANY BRAIN SPINAL CORD AND BODY MRIS XRAYS CT SCANS ETC ALL TO NO AVAIL AFTER ABOUT A YEAR WITH NEARLY EVERY CAUSE ON OUR LIST ELIMINATED A UNIVERSITY OF CALIFORNIADAVIS INTERNIST SUGGESTED A LIVER CT SCAN WHILE THE LIVER PROVED TO BE NORMAL IMAGERY REVEALED AN UNEXPECTED AND TERRIFYINGLY MALIGNANT TUMOR ON MY RIGHT KIDNEY WHICH WAS SUBSEQUENTLY SURGICALLY REMOVED AT UCLA TWO YEARS AGO AFTER THREE MONTHS OF SLOW AND PAINFUL RECOVERY THE ORIGINAL SYMPTOMS REMAINED AND WE HAD TO RESUME THE NEUROLOGICAL HUNT BY THIS TIME SIMPLY WALKING WAS A CHALLENGE FINALLY DR ROBERT COLLINS CHAIRMAN OF THE UCLA NEUROLOGY DEPARTMENT AND THE EIGHTH NEUROLOGIST I HAD SEEN SUCCEEDED IN LOCATING THE PROBLEM AREA IN THE SPINAL CORD SEVERAL CAREFULLY ENHANCED MRI STUDIES THEN INDICATED A POSSIBLE CYST IN THE CORD IN LATE MARCH 1992 I WAS ADMITTED TO THE GREEN HOSPITAL AT SCRIPPS INSTITUTE IN SAN DIEGO FOR SPINAL NEUROSURGERY MY NEUROSURGEON DR THOMAS WALTZ INITIALLY BELIEVED THE CYST WAS A TUMOR BASED ON NEW MRIS DURING SURGERY HE DISCOVERED THAT THE PROBLEM WAS ACTUALLY AN ARTERIALIZED VEIN THE PRECISE LOCATION IN THE CORD WAS SUBSEQUENTLY PINPOINTED BY A SOPHISTICATED ARTERIOGRAM AND THE ARTERIOVENOUS MALFORMATION AVM WAS THEN SURGICALLY CORRECTED IN YET ANOTHER OPERATION THIS RARE DISEASE IDENTIFIED IN 1929 IS HALTED BY A SURGICAL TECHNIQUE PERFECTED ONLY ABOUT 10 YEARS AGO VIRTUALLY ALL THE UNCORRECTED AVM PATIENTS BECOME WHEELCHAIRBOUND THUS HAPPILY ENDED A FRUSTRATING 18MONTH MEDICAL ODYSSEY TO UNRAVEL A BAFFLING MYSTERY DURING THAT TIME I HAD 22 DIRECT PERSONAL PHYSICIANS NOT INCLUDING A SUPPORTING CAST OF RADIOLOGISTS AND ANESTHESIOLOGISTS I UNDERWENT THREE MAJOR SURGICAL OPERATIONS TO CORRECT BLADDER CANCER IN THE KIDNEY AND THE AVM AFTER THESE SUCCESSES SEVERAL OF OUR DOCTORS COMMENTED THAT MY WIFE'S AND MY MEDICAL PARTICIPATION AND PERSISTENCE WERE AN ESSENTIAL INGREDIENT TO THE FORTUNATE MEDICAL JOURNEY ONE MEASURE OF ITS PLEASANT ENDING I SKIED 33 DAYS LAST WINTER WHAT I HAVE LEARNED FROM MY ODYSSEY COULD BE HELPFUL TO MEDICAL REFORM FREEDOM OF CHOICE IS CRITICAL SEVERAL PHYSICIANS ADMITTED THEY WERE STUMPED BY MY CASE MANY DID NOT OBVIOUSLY NO ONE IS INFALLIBLE AND SOME DOCTORS ARE MORE CAPABLE THAN OTHERS IN THE DIAGNOSIS OR TREATMENT OF CERTAIN ILLNESSES AS MY WIFE AND I PROGRESSED THROUGH BLIND ALLEYS AND MISLEADING DIAGNOSES WE WERE FORCED TO MAKE OUR OWN INFORMED JUDGMENTS PATIENTS MUST BE WILLING AND ABLE TO MAKE CHOICES INCLUDING SELECTING PHYSICIANS ESPECIALLY IN ILLDEFINED MEDICAL SITUATIONS WITH MR CLINTON'S MANAGEDCARE REFORM IT IS UNLIKELY THAT MY GATEKEEPER GENERAL PRACTITIONER WOULD HAVE ALLOWED FOUR INTERNISTS AND EIGHT NEUROLOGICAL REFERRALS SO MY WHEELCHAIR FATE WOULD HAVE BEEN SEALED EARLY MEDICAL SPECIALISTS ARE THE SYSTEM'S BACKBONE WE WERE FORTUNATE IN EVENTUALLY FINDING THE APPROPRIATE SPECIALISTS THE SEARCH WAS NOT EASY BECAUSE ALL DOCTORS ARE NOT EQUALLY GIFTED IN ALL AREAS THE ADMINISTRATION'S IDEA OF MANDATING THAT HALF OF ALL MEDICAL SCHOOL GRADUATES BE GENERAL PRACTITIONERS WILL SIGNIFICANTLY REDUCE THE POPULATION OF MEDICAL SPECIALISTS AND LESSEN OUR CHANCES OF FINDING THE ONE OR TWO APPROPRIATE SPECIALISTS IT ALSO DENIES YOUNG DOCTORS A FREE CAREER CHOICE SUCH AN ANTIFREEMARKET MANDATE MAY YIELD COST SAVINGS BUT AT THE EXPENSE OF SOPHISTICATED MEDICINE AND ULTIMATELY HUMAN LIVES HIGHTECH WORKS HIGHTECHNOLOGY MEDICINE WAS INDISPENSABLE IN SAVING MY LIFE AND MY LEGS MEDICAL REFORMERS DISMISS MRI MACHINES AND OTHER TECHNOLOGY INNOVATIONS AS WASTEFUL BECAUSE OF THEIR HIGH COSTS R&D FOR MEDICAL ADVANCES AS WELL AS RISK CAPITAL FOR EXPENSIVE NEW MEDICAL DEVICES ARE LOW PRIORITY IN A ONESIZEFITSALL MEDICAL SCHEME MEDICAL REFORMERS' SIMPLE COST MODELS DON'T COUNT THE HUMAN PENALTY FOR REDUCED ACCESS TO HIGHTECH TOOLS NOR PERHAPS THE ACTUAL COST SAVINGS OF NONINVASIVE TECHNIQUES THE CANADIAN MODEL OFFERS NO SOLACE ADVOCATES OF THE SINGLEPAYER CANADIAN HEALTH CARE SYSTEM ARGUE THAT CANADIANS RECEIVE ADEQUATE HEALTH CARE WELL ADEQUATE IS NOT GOOD ENOUGH HAD I RESIDED IN CANADA I WOULD NOW BE IN A WHEELCHAIR AT BEST BECAUSE OF THE LENGTHY WAITS FOR THE MRIS AND CT SCANS I CONSUMED IN GREAT QUANTITIES CANADIANS COME TO THIS COUNTRY FOR SERIOUS MEDICAL TREATMENT BECAUSE THEIR SYSTEM IS INVESTMENTLIMITED THE ADMINISTRATION MAY PROMISE US GOVERNMENT INVESTMENT IN HEALTH CARE BUT WE ALL CERTAINLY UNDERSTAND THAT SOONER OR LATER TAX DOLLARS WON'T COVER THE COSTS OF FUTURE BREAKTHROUGHS THE 23RD PHYSICIAN I CONSULTED REVIEWED MY ENTIRE CASE AND PRONOUNCED IN AMAZEMENT YOU HAVE DODGED TWO BULLETS YOU ARE A MEDICAL MIRACLE MY FEAR IS THAT THE ADMINISTRATION'S PLAN WILL SO LOWER THE QUALITY AND AVAILABILITY OF CARE THAT MEDICAL MIRACLES WILL NO LONGER HAPPEN IN THE US MR ANGELETTI IS A 62YEAROLD SEMIRETIRED AEROSPACE AND COMMUNICATION ENGINEER LIVING IN MAMMOTH LAKES CALIF 9403180083 940318 WHITE HOUSE SAYS USAIR BRITISH AIR MAY CONTINUE PACT BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION SAID BRITISH AIRWAYS PLC MAY CONTINUE ITS MARKETING ALLIANCE WITH USAIR FOR ANOTHER YEAR DESPITE FRUSTRATION OVER THE BRITISH GOVERNMENT'S REFUSAL TO WIDEN OTHER US AIRLINES' ACCESS TO THE UNITED KINGDOM THE ADMINISTRATION EXTENDED AN AGREEMENT THAT LETS BRITISH AIR LINK ITS INTERNATIONAL DESTINATIONS TO ABOUT 65 OF USAIR'S DOMESTIC DESTINATIONS THROUGH SHARED COMPUTERRESERVATION CODES BUT THE ADMINISTRATION ALSO SAID IT WOULDN'T ALLOW EXPANSION OF THE CODESHARING DEAL TO MORE US CITIES AS THE TWO HAD SOUGHT US OFFICIALS ALSO LEFT OPEN THE POSSIBILITY THAT PRESIDENT CLINTON WILL RENOUNCE THE AVIATION TREATY THAT ALLOWS SUCH DEALS IF THE BRITISH DON'T WORK TOWARD A NEW TREATY ALLOWING US AIRLINES EASIER ACCESS TO THE UK I HAVE BEEN VERY DISAPPOINTED WITH THE LACK OF PROGRESS IN THE NEGOTIATIONS OVER THE PAST YEAR SAID TRANSPORTATION SECRETARY FEDERICO PENA WHO A YEAR AGO APPROVED THE USAIRBRITISH AIR ALLIANCE FOR A 12MONTH TRIAL PERIOD BOTH USAIR GROUP INC AND BRITISH AIR SAID THEY WERE PLEASED BRITISH AIR ADDED WE REMAIN COMMITTED TO THE GOAL OF A PROGRESSIVE LIBERALIZATION OF THE BILATERAL RELATIONSHIP WHICH IS FAIR TO THE AIRLINES OF BOTH COUNTRIES THE TWO CARRIERS ARE NOW SERVING 37 US CITIES WITH THE JOINT FLIGHTS WHICH ALLOW PASSENGERS TO FLY ON TWO AIRLINES WITHOUT WORRYING ABOUT SEPARATE RESERVATIONS SCHEDULES AND BAGGAGE HANDLING NEGOTIATORS FOR THE US LOST LEVERAGE WITH THE UK THIS MONTH WHEN BRITISH AIR SUSPENDED PLANS TO PUMP AN ADDITIONAL 450 MILLION INTO USAIR WHICH IS STRUGGLING TO STEM LOSSES FROM A FARE WAR BRITISH AIR WHICH HAS ALREADY INVESTED 400 MILLION IN USAIR WOULD NEED US APPROVAL FOR THE ADDED INVESTMENT EVEN IF THE US RENOUNCED THE TREATY ITS PROVISIONS WOULD STAY IN EFFECT FOR A YEAR AFTER THAT THOUGH THE US COULD CUT BACK BRITISH ACCESS TO THE US THROUGH THE CODESHARING ARRANGEMENT AND THE BRITISH COULD SEEK TO CURTAIL US LANDING RIGHTS IN LONDON ADMINISTRATION OFFICIALS SAID THEY WANTED TO BE ABLE TO REVIEW THE RENUNCIATION OPTION SEPARATELY FROM THE CODESHARING DEAL BUT NO TIMETABLE IS SET FOR THAT THE TWO COUNTRIES HAVEN'T HELD FORMAL TALKS ON A NEW TREATY SINCE DECEMBER THE US IS SEEKING MORE LANDING RIGHTS AT LONDON'S HEATHROW AIRPORT AND GREATER FREEDOM TO FLY PASSENGERS FROM LONDON TO OTHER INTERNATIONAL DESTINATIONS BUT BRITISH OFFICIALS HAVE INSISTED HEATHROW IS ALREADY TOO CROWDED AND HAVE INSTEAD OFFERED ADDITIONAL SLOTS AT OTHER AIRPORTS LATE LAST WEEK BRITISH AUTHORITIES INFORMALLY OFFERED A MINIDEAL THAT WOULD HAVE GIVEN US AIRLINES A FEW ADDITIONAL LANDING SLOTS AT LONDONAREA AIRPORTS BUT US OFFICIALS SNUBBED THE OFFER SAYING IT DIDN'T GO NEARLY FAR ENOUGH MICHAEL J MCCARTHY IN CHICAGO CONTRIBUTED TO THIS ARTICLE 9403180082 940318 WHO'S NEWS SMITH INTERNATIONAL INC SMITH INTERNATIONAL INC HOUSTON LOREN K CARROLL FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS ENERGY PRODUCTS AND SERVICES CONCERN WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MI DRILLING FLUIDS CO IN WHICH SMITH INTERNATIONAL ACQUIRED A 64 STAKE EARLIER THIS YEAR HE SUCCEEDS BILL LAKEY 59 YEARS OLD WHO RESIGNED MR CARROLL 50 REMAINS A SMITH INTERNATIONAL DIRECTOR JOHN KENNEDY SMITH INTERNATIONAL'S TREASURER WAS NAMED TO THE ADDITIONAL AND NEWLY CREATED POSTS OF VICE PRESIDENT AND CHIEF ACCOUNTING OFFICER MR KENNEDY 41 ASSUMES SOME OF THE DUTIES VACATED BY MR CARROLL WHO ISN'T CURRENTLY BEING SUCCEEDED AS CHIEF FINANCIAL OFFICER 9403180081 940318 BUSINESS BRIEF SELECTIVE INSURANCE GROUP INC PROPERTY LOSSES ON STORMS MAY HIT UP TO 95 MILLION SELECTIVE INSURANCE GROUP INC SAID IT EXPECTS PROPERTY LOSSES FROM WINTER STORMS TO RANGE FROM 85 MILLION TO 95 MILLION AFTER REINSURANCE IN ADDITION THE BRANCHVILLE NJ INSURANCE HOLDING COMPANY SAID IT EXPECTS UNDERWRITING LOSSES IN THE FIRST QUARTER FROM STATEMANDATED INVOLUNTARY WORKERS' COMPENSATION AND COMMERCIAL AUTOMOBILE POOLS WILL BE ABOUT 3 MILLION LOWER THAN A YEAR AGO WHILE LABOR COSTS WILL BE ABOUT 1 MILLION LOWER DUE TO WORK FORCE CUTS TAKEN TOGETHER THE COMPANY SAID THE ITEMS WILL REDUCE FIRSTQUARTER NET INCOME BY A RANGE OF 29 MILLION OR 21 CENTS A SHARE TO 36 MILLION OR 26 CENTS A SHARE IN THE YEAREARLIER FIRST QUARTER SELECTIVE INSURANCE HAD NET OF 33 MILLION OR 24 CENTS A SHARE 9403180080 940318 WORLD MARKETS TOKYO STOCKS SLIDE AS INVESTORS TAKE PROFITS LONDON ISSUES RISE DESPITE RATE DISAPPOINTMENT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS FELL THURSDAY AMID PROFITTAKING BY INSTITUTIONAL INVESTORS BUT LATE BUYING OF BLUECHIP ELECTRICALS CUSHIONED THE DROP IN LONDON SHARE PRICES CLOSED MODERATELY HIGHER AMID MILD DISAPPOINTMENT THAT THE GERMAN CENTRAL BANK DIDN'T CUT KEY INTEREST RATES IN FRANKFURT PRICES WERE MIXED WITH MANY INVESTORS STAYING ON THE SIDELINES BEFORE THE BUNDESBANK'S ANNOUNCEMENT JUST BEFORE THE MARKET CLOSED WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11648 UP 002 REFLECTING HIGHER AMERICAN AND EUROPEAN MARKETS AND LOWER ASIA/PACIFIC MARKETS ENTERTAINMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15700 UP 461 OR 3 WITH KING WORLD PRODUCTIONS OF THE US POSTING A 43 GAIN IN ITS LOCAL CURRENCY PLANTATIONS STOCKS TRAILED AT 21427 DOWN 397 OR 18 WITH CONSOLIDATED PLANTATIONS OF MALAYSIA SLIDING 46 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 16892 POINTS WEDNESDAY FELL 8561 TO 2059216 IN TRADING FRIDAY THE NIKKEI FELL 40 POINTS TO CLOSE THE MORNING SESSION AT 2055216 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 570 MILLION SHARES DOWN FROM 6292 MILLION SHARES A DAY EARLIER LOSERS TOPPED GAINERS 598427 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 1033 POINTS WEDNESDAY FELL 474 TO 164853 SELLING BY DOMESTIC CORPORATIONS AND FINANCIAL INSTITUTIONS AHEAD OF THE FISCAL YEAR END ON MARCH 31 WAS EVIDENT THURSDAY ALONG WITH PROFITTAKING BY JAPANESE INVESTMENT TRUSTS OR MUTUAL FUNDS INVESTORS CONTINUED TO BE ATTRACTED TO HEAVILY CAPITALIZED ISSUES INCLUDING STEEL SHARES THE NIKKEI OPENED AT ITS HIGH FOR THE DAY OF 2069297 AND FELL AS LOW AS 2044944 EARLY IN THE AFTERNOON AFTER SELLING BY TWO OF JAPAN'S BIGGEST BROKERAGE FIRMS THE SALES MAY HAVE BEEN ON BEHALF OF INVESTMENT TRUSTS LIQUIDATING POSITIONS IN BLUECHIP SHARES IN ORDER TO TAKE PROFITS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 128 POINTS TO 32557 THE FT 30STOCK INDEX INCREASED 135 POINTS TO 25663 VOLUME WAS 6597 MILLION SHARES COMPARED WITH 6255 MILLION SHARES A DAY EARLIER INVESTORS HELD LOW EXPECTATIONS FOR A GERMAN RATE CUT AND THE MARKET SLIPPED ONLY SLIGHTLY ON THEIR DISAPPOINTMENT THAT THE GERMAN BUNDESBANK DECIDED TO LEAVE KEY INTEREST RATES UNCHANGED AT LEAST FOR FOUR WEEKS IN FRANKFURT THE DAX 30STOCK INDEX ROSE 233 POINTS TO 217506 POINTS INVESTORS MOSTLY POSTPONED ACTION AHEAD OF THE BUNDESBANK ANNOUNCEMENT POSITIVE EARNINGS REPORTS FROM SEVERAL GERMAN COMPANIES PUSHED THE MARKET HIGHER IN PARIS STOCKS ROSE SLIGHTLY DESPITE INTERMITTENT DECLINES AFTER THE BUNDESBANK'S ANNOUNCEMENT IN MILAN STOCKS POSTED STRONG GAINS DESPITE SOME INITIAL DISAPPOINTMENT ABOUT GERMAN INTEREST RATES INDUSTRIAL STOCKS GOT A LIFT FROM HOPES FOR LOWER ITALIAN INTEREST RATES AND FOR AN ECONOMIC RECOVERY IN STOCKHOLM SHARES FELL AS INVESTORS WORRIED THAT THE LARGE NUMBER OF COMING SHARE ISSUES WILL DILUTE PRICES A TREND TOWARD HIGHER BOND YIELDS DURING THE AFTERNOON ALSO DISCOURAGED INVESTORS IN BRUSSELS EQUITIES FINISHED HIGHER AFTER A LASTMINUTE BUYING SURGE IN MEXICO CITY STOCKS ROSE FOR THE SECOND STRAIGHT SESSION IN LIGHT TRADING AS NEW BUY RECOMMENDATIONS HELPED LIFT PRICES CONTINUED QUIET IN THE REBELLIOUS SOUTHERN PART OF THE COUNTRY REASSURED INVESTORS BUT THEY STILL FACED AN ELEMENT OF UNCERTAINTY AS THE GOVERNMENT'S CHIEF NEGOTIATOR WITH THE REBELS HELD OUT THE POSSIBILITY OF A MAVERICK PRESIDENTIAL BID MANY MAJOR ASIAN/PACIFIC MARKETS FINISHED WITH HEAVY LOSSES IN HONG KONG ISSUES FELL 23 THEIR THIRDSTRAIGHT DECLINE AS OVERSEAS FUNDS SOLD BLUECHIPS THE MARKET'S DECLINE WAS ALSO DRIVEN BY WEAKNESS IN THE FUTURES MARKET WHERE THE MARCH FUTURES CONTRACTS WERE TRADING AT A DISCOUNT TO THE KEY SHARE INDEX IN SYDNEY SHARES EDGED LOWER AMID RIPPLES FROM A LATE SELLOFF IN NEW YORK THE PREVIOUS DAY IN SEOUL PRICES SLIPPED AS INVESTORS HEAVILY SOLD LARGECAPITALIZATION ISSUES BANK AND MANUFACTURING STOCKS WERE HIT HARDEST IN BANGKOK STOCKS SANK 2 IN THIN TRADING AS INVESTORS ESPECIALLY DOMESTIC ONES LOST CONFIDENCE AND SOLD TO CUT LOSSES THE MINING SECTOR PLUNGED 77 IN SINGAPORE SHARES TUMBLED 15 IN THIN DEALINGS AMID A GENERAL LACK OF BUYING INTEREST IN TAIPEI ISSUES ROSE 12 ON THE HEELS OF WEDNESDAY'S 11 IMPROVEMENT NEWS THAT REIMPOSITION OF TAIWAN'S CAPITALGAINS TAX WAS SHELVED BOOSTED CONFIDENCE INSTITUTIONAL INVESTORS WATCHED FROM THE SIDELINES AS RETAIL INVESTORS BID UP SPECULATIVE STOCKS AND SOME BLUECHIP FINANCIAL SHARES IN MANILA EQUITIES SURGED 27 IN THIN TRADING PROPPED UP BY AGGRESSIVE BARGAINHUNTING IN THE LAST HOUR OF TRADING IN WELLINGTON STOCKS ROSE 14 IN MODERATE TRADING DOMINATED BY HEAVY BUYING OF BLUE CHIPS IN KUALA LUMPUR SHARES SLID 18 IN TRADING KEPT LIGHT BY INVESTORS' SLOW RETURN FROM AN EXTENDED HOLIDAY AMONG CORPORATE DEVELOPMENTS IN LONDON LEGAL & GENERAL GROUP FELL 775 PENCE OR 15 TO 508 PENCE 760 THE INSURER'S 1993 PRETAX PROFIT JUMPED 56 TO 181 MILLION 2707 MILLION FROM A YEAR EARLIER COURTAULDS TEXTILES ROSE 10 PENCE OR 18 TO 566 PENCE THE CLOTHING AND TEXTILE MAKER REPORTED 1993 PRETAX PROFIT OF 388 MILLION DOWN SLIGHTLY FROM 391 MILLION A YEAR EARLIER SECONDHALF RESULTS OFFSET THE 17 DECLINE IN PROFIT IN THE FIRST SIX MONTHS GUINNESS TUMBLED 155 PENCE OR 31 TO 484 PENCE THE BREWER AND DISTILLER'S PRETAX PROFIT FELL 12 TO 702 MILLION BECAUSE OF A 173 MILLION PROVISION AGAINST AN INVESTMENT IN A FRENCH COMPANY IN AMSTERDAM HOOGOVENS FELL 12 GUILDERS TO 6480 GUILDERS 3418 THE STEEL AND ALUMINUM MAKER POSTED A NET LOSS OF 234 MILLION GUILDERS 1234 MILLION IN 1993 SHARPLY NARROWER THAN THE 595 MILLION GUILDER LOSS IT RECORDED A YEAR EARLIER HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9403180079 940318 WHO'S NEWS COMTEK RESOURCES INC COMTEK RESOURCES INC DENVER DENNIS C DOWD FORMERLY TREASURER OF THIS ENERGY CONCERN WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER MR DOWD 52 YEARS OLD SUCCEEDS JIM ELLERTON 49 WHO RESIGNED FROM THE PARENT BUT WILL CONTINUE HIS AFFILIATION WITH THE COMPANY'S PRINCIPAL SUBSIDIARY 9403180078 940318 BUSINESS BRIEF MICRON TECHNOLOGY INC FISCAL 2NDPERIOD NET JUMPS ON STRONG DEMAND FOR CHIPS MICRON TECHNOLOGY INC BENEFITING FROM STRONG PRICES FOR MEMORY CHIPS ANNOUNCED FISCAL SECONDQUARTER EARNINGS WELL ABOVE ANALYSTS' EXPECTATIONS THE BOISE IDAHO CHIP MAKER SAID NET INCOME IN THE PERIOD ENDED MARCH 3 SOARED TO 865 MILLION OR 209 A SHARE FROM 9 MILLION OR 22 CENTS A SHARE IN THE YEAREARLIER PERIOD ANALYSTS HAD EXPECTED A RANGE OF 182 TO 2 A SHARE THE COMPANY SAID SALES ROSE TO 3904 MILLION FROM 1764 MILLION MICRON SAID THE INCREASE WAS MAINLY DUE TO STRONG DEMAND FOR ITS FOURMEGABIT DRAM CHIPS AS WELL AS INCREASED MANUFACTURING CAPACITY THE RESULTS WERE ANNOUNCED AFTER THE CLOSE OF THE MARKET IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY MICRON SHARES FELL 75 CENTS TO 8325 9403180077 940318 MOODY'S LIFTS RATINGS ON DEBT OF CITICORP AND CHASE MANHATTAN NEW YORK MOODY'S INVESTORS SERVICE INC RAISED SENIOR DEBT RATINGS FOR CITICORP CHASE MANHATTAN CORP AND CERTAIN SUBSIDIARIES OF BOTH BANKS THE RATINGS AGENCY RAISED CITICORP'S SENIOR DEBT TO A2 FROM BAA1 ABOUT 34 BILLION IN DEBT WAS AFFECTED MOODY'S SAID THE UPGRADES REFLECT THE BANK'S IMPROVING CORE PROFITABILITY AS WELL AS CONTINUED REDUCTIONS IN OVERHEAD COSTS MOODY'S ALSO SAID CITICORP'S DISPOSITION OF ITS QUOTRON UNIT COMBINED WITH DECLINING CREDIT COSTS WILL ALLOW MARKEDLY HIGHER PROFITABILITY IN COMING YEARS CITICORP HAS ABOUT 217 BILLION IN ASSETS CITICORP HAD BEEN PLACED UNDER REVIEW FOR POSSIBLE UPGRADE ON JAN 18 STANDARD & POOR'S CORP HAD RAISED CITICORP'S SENIOR DEBT RATING TO SINGLEA FROM SINGLEAMINUS EARLIER THIS WEEK MOODY'S UPGRADED CHASE MANHATTAN'S SENIOR DEBT TO A3 FROM BAA1 ABOUT 84 BILLION IN DEBT WAS AFFECTED THE RATINGS AGENCY SAID THE UPGRADE REFLECTS IMPROVEMENTS IN THE BANK'S ASSET QUALITY AND CAPITAL RATIOS IN ADDITION MOODY'S SAID THE BANK HAS GREATLY REDUCED ITS EXPOSURE TO REFINANCING COUNTRIES THROUGH SALES CHARGEOFFS OR RECLASSIFICATION OF LOANS THE RATINGS AGENCY ADDED THAT THE COMPANY'S FINANCIAL POSITION HAS BENEFITED FROM CYCLICAL IMPROVEMENTS IN THE US ECONOMY CHASE MANHATTAN HAS ABOUT 102 BILLION IN ASSETS THE BANK HAD BEEN PLACED UNDER REVIEW FOR POSSIBLE UPGRADE ON JAN 24 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CITIBANK EASED 125 CENTS TO 41 AND CHASE MANHATTAN FELL 25 CENTS TO 3350 9403180076 940318 MARKETING & MEDIA HOME SHOPPING PLANS TO SETTLE SUIT FILED BY FORMER COUNSEL NEW YORK HOME SHOPPING NETWORK INC HAS AGREED IN PRINCIPLE TO SETTLE A LAWSUIT FILED BY THE FORMER GENERAL COUNSEL WHO ALLEGED A LITANY OF FINANCIAL IMPROPRIETIES AT THE COMPANY THE SETTLEMENT OF THE SUIT BY ALLEN P ALLWEISS IF COMPLETED WOULD CLEAR AWAY ALMOST ALL THE REMAINING LITIGATION THAT ENGULFED HOME SHOPPING UNDER THE REIGN OF HOME SHOPPING FOUNDER AND FORMER CHAIRMAN ROY SPEER IN HIS SUIT FILED LAST YEAR IN FLORIDA STATE COURT MR ALLWEISS SOUGHT PAYMENT UNDER SEVERANCE AND STOCKOPTION AGREEMENTS AMONG OTHER THINGS HE ALLEGED THAT HOME SHOPPING FIRED HIM TO KEEP HIM QUIET ABOUT ALLEGATIONS THAT MR SPEER AND OTHER FORMER HOME SHOPPING EXECUTIVES EXTRACTED BRIBES FROM VENDORS HELD SECRET STAKES IN SUPPLIERS AND MADE HUSHMONEY PAYMENTS FURTHERMORE THE SUIT ALLEGED THAT HOME SHOPPING PAID MILLIONS OF DOLLARS TO COMPANIES RUN BY MR SPEER'S SON RICHARD FOR BOGUS SERVICES MEANWHILE HOME SHOPPING COUNTERSUED MR ALLWEISS CHARGING HIM WITH INSIDER TRADING AN ATTORNEY FOR MR ALLWEISS CONFIRMED THAT A SETTLEMENT IN PRINCIPLE HAD BEEN REACHED LIBERTY MEDIA CORP THE MAJORITY OWNER OF HOME SHOPPING NETWORK DECLINED COMMENT HOME SHOPPING DIDN'T RETURN CALLS EARLIER LAST MONTH HOME SHOPPING AGREED IN PRINCIPLE TO PAY BETWEEN 13 MILLION AND 16 MILLION TO SETTLE NINE OTHER SUITS ALLEGING SIMILAR CHARGES OF FINANCIAL MISDEEDS AT THE COMPANY THE SUITS FILED IN FEDERAL COURT IN TAMPA FLA SAID THE COMPANY HAD FAILED TO FULLY DISCLOSE THE QUESTIONABLE FINANCIAL DEALINGS 9403180075 940318 MR SEASHELL' STANDS ATOP SMALL WORLD OF MALACOLOGY TODAY R TUCKER ABBOTT KNOWS ALL ABOUT MYRIAD MOLLUSKS HIS SIDELINE IS PAPER CLIPS BY ERIC MORGENTHALER STAFF REPORTER OF THE WALL STREET JOURNAL SANIBEL ISLAND FLA FOR AT LEAST A DECADE THIS NEWSPAPER HAS NOT USED THE WORD MALACOLOGY TODAY WE MAKE UP FOR LOST TIME MALACOLOGY IS THE STUDY OF MOLLUSKS INCLUDING SNAILS SCALLOPS CLAMS AND CONCHS AND THEIR SHELLS THE STUDY OF MOLLUSK SHELLS IS CALLED CONCHOLOGY ANOTHER WORD SELDOM SEEN HERE MALACOLOGY DATES BACK TO 19THCENTURY FRANCE CONCHOLOGY TO VICTORIAN ENGLAND THE BESTKNOWN MALACOLOGIST IN AMERICA IS 74YEAROLD R TUCKER ABBOTT HE HAS WRITTEN ABOUT 30 BOOKS ON SHELLS MOST OF THEM FOR A GENERAL AUDIENCE AS WELL AS HUNDREDS OF SCIENTIFIC PAPERS HE HAS PROBABLY DONE MORE TO POPULARIZE THE SCIENCE THAN ANYBODY ELSE LIVING OR DEAD SAYS HENRY W CHANEY CURATOR OF MOLLUSKS AT CALIFORNIA'S SANTA BARBARA MUSEUM OF NATURAL HISTORY BUT THERE AREN'T ALL THAT MANY MALACOLOGISTS LIVING OR DEAD PROBABLY NO MORE THAN 50 OR SO WORKING IN THE US SOME EXPERTS SAY EVEN THAT ESTIMATE IS HIGH HOWEVER A LOT OF SCIENTISTS FROM OTHER DISCIPLINES STUDY MOLLUSKS AND SHELLS TOO AND THERE IS A LEGION OF AMATEUR SHELL COLLECTORS ALL IN ALL DR ABBOTT LEADS A RATHER BIG FIELD HE IS SORT OF MR SEASHELL SAYS KENNETH J BOSS PROFESSOR OF BIOLOGY AND CURATOR IN MALACOLOGY AT HARVARD COLLEGE'S MUSEUM OF COMPARATIVE ZOOLOGY DR ABBOTT RECENTLY ACCEPTED A POSITION AS DIRECTOR OF A NEW SHELL MUSEUM THAT IS BEING BUILT ON THIS BARRIER ISLAND OFF FLORIDA'S WEST COAST THE BEACHES OF SANIBEL AND NEIGHBORING CAPTIVA ISLAND HAVE SOME OF THE BEST SHELLING IN THE US IT'S A FULLTIME JOB DR ABBOTT SAYS OF HIS POST BY THAT I MEAN AN 18HOUR DAY BUT IT'S FUN YOU'LL FIND THAT PEOPLE BECOME MUCH BUSIER WHEN THEY RETIRE THE MUSEUM ISN'T DUE TO BE FINISHED UNTIL LATE THIS YEAR SO DR ABBOTT NOW OFTEN WORKS IN ITS PREVIEW CENTER WHICH HAS A FEW EXHIBITS AND IS OPEN TO VISITORS HE IS A FRIENDLY MAN WITH A CASUAL MANNER AND GRAYING HAIR AND HE OFTEN SPORTS A STICKON NAME TAG READING TUCKER HE WEARS ONE SET OF GLASSES AND KEEPS ANOTHER TETHERED AROUND HIS NECK HE IS PARTIAL TO A SHORTSLEEVED HAWAIIAN SHIRT DECORATED WITH BRIGHTLY COLORED SHELLS THE PREVIEW CENTER IS HOUSED IN A FEW ROOMS OF A FORMER SHELL SHOP WHOSE OWNER EDITH MUGRIDGE RETIRED IN 1992 AT THE AGE OF 86 SHE NOW LIVES IN THE BACK BUT DROPS IN NOW AND THEN TO CHECK ON THINGS NEXTDOOR ON ONE SIDE OF THE SHELL CENTER IS A RESTAURANT CALLED CHEEBURGER CHEEBURGER ITS NAME PRETTY MUCH SUMS UP ITS MENU NEXTDOOR ON THE OTHER SIDE IS A SHELL SERVICE STATION WHAT ELSE SAYS DR ABBOTT DR ABBOTT'S CAREER IN MALACOLOGY IS UNUSUAL IN THAT IT SPANS BOTH THE SCIENTIFIC AND THE POPULAR SIDES OF SHELL COLLECTING OVER THE PAST 50 YEARS OR SO HE HAS PUBLISHED EXTENSIVELY IN SCIENTIFIC JOURNALS HELD POSITIONS IN MALACOLOGY AT THREE MAJOR MUSEUMS AND HUNTED MARINE LIFE ON SCIENTIFIC EXPEDITIONS FROM ZANZIBAR TO FIJI FOR 28 YEARS HE EDITED THE NAUTILUS THE OLDEST 105 YEARS AMERICAN JOURNAL ON MOLLUSKS BUT HE ALSO IS KNOWN FOR HIS POPULAR WORK ON SHELLS ONE OF HIS MANY BOOKS FOR CHILDREN QUIZ ME SEASHELLS IS IN BRAILLE HE ADAPTED TWO OF HIS BOOKS FOR CASSETTE ONE CASSETTE IS MAINLY DR ABBOTT READING THE INDEX SO HIS AUDIENCE CAN LEARN HOW TO PRONOUNCE THE SCIENTIFIC NAMES OF SHELLS PLACOPECTEN MAGELLANICUS AND ARGOPECTEN IRRADIANS ARE BOTH A MOUTHFUL THE FIRST IS THE SEA SCALLOP THE SECOND THE BAY SCALLOP HIS MOSTPOPULAR BOOK A GOLDEN NATURE GUIDE CALLED SEA SHELLS OF THE WORLD HAS BEEN PUBLISHED IN SEVEN LANGUAGES FROM NORWEGIAN TO PORTUGUESE MALACOLOGISTS' MUSE RUDIGER BIELER ASSOCIATE CURATOR AND HEAD OF THE INVERTEBRATE DIVISION OF CHICAGO'S FIELD MUSEUM SAYS DR ABBOTT'S BOOKS WERE WHAT HOOKED HIM ON MALACOLOGY AS A BOY IN HAMBURG GERMANY I THINK THAT'S TRUE FOR A LOT OF FOLKS IN MY SITUATION DR BIELER SAYS I KNOW HIS BOOKS HAVE AFFECTED PEOPLE FROM HOLLAND TO SOUTH AFRICA WHICH IS PRETTY AMAZING NONETHELESS DR ABBOTT FRETS THAT POPULAR KNOWLEDGE OF SHELLS IS GOING TO THE DOGS I HAVE FOUND THAT A VERY LARGE PERCENTAGE OF SCHOOLTEACHERS DON'T KNOW THAT SHELLS COME FROM LIVING CREATURES HE SAYS WHERE DO THEY THINK THEY COME FROM OH GOD PUT THEM ON THE BEACH AT 8 AM DON'T YOU KNOW DR ABBOTT RESPONDS ACTUALLY MOLLUSKS ARE ONE OF THE OLDEST AND MOST WIDELY DISTRIBUTED ANIMAL GROUPS ON EARTH ABOUT 100000 LIVING SPECIES ARE KNOWN AND ANOTHER 600 OR SO ARE SCIENTIFICALLY DESCRIBED EACH YEAR SOME NEWLY DISCOVERED OTHERS FOUND IN MUSEUM DRAWERS MORE FACTS SQUID HAVE BEAUTIFUL EYES THE EDIBLE OYSTER UNDERGOES AN ANNUAL SEX CHANGE MALE ONE YEAR FEMALE THE NEXT THE GIANT TRIDACNA CLAM CAN PRODUCE PEARLS THE SIZE OF GOLF BALLS THE LARGEST KNOWN MOLLUSK SHELL FROM A CREATURE THAT LIVED 400 MILLION YEARS AGO WAS 15 FEET IN DIAMETER THE CHINESE ARE BELIEVED TO HAVE USED COWRIE SHELLS FOR MONEY AS EARLY AS 2000 BC WHICH BRINGS US TO THE BAILEYMATTHEWS SHELL MUSEUM AS THE FACILITY HERE IS CALLED ITS MAIN GOAL IS TO EDUCATE THE PUBLIC IN CONTRAST TO MOST MAJOR MOLLUSK COLLECTIONS WHICH ARE PRIMARILY FOR RESEARCHERS IT HAS ABOUT THREE DOZEN EXHIBITS PLANNED OF WHICH EIGHT ARE FINISHED THEY ARE THE FINEST AND PRETTIEST AND MOST EDUCATIONAL IF I MAY SAY SO EXHIBITS ON SHELLS EVER PRODUCED IN THE US DR ABBOTT SAYS I'M EXAGGERATING BUT IT IS TRUE TO A GREAT EXTENT MOST BIG MUSEUMS HAVE TO HAVE BUTTERFLIES AND ELEPHANTS AND WHALES ON EXHIBIT AND THE MOLLUSK EXHIBITS ARE MISERABLE WE'RE GOING TO BE SHINING IN THAT AREA HE ADDS TO ME THIS IS SORT OF THE CROWNING ACCOMPLISHMENT OF MY LIFE DR ABBOTT HAS LOVED SHELLS SINCE BOYHOOD I HAD A LITTLE MUSEUM IN THE BASEMENT HE SAYS HE STUDIED THEM AS AN UNDERGRADUATE AT HARVARD AND A GRADUATE STUDENT AT GEORGE WASHINGTON UNIVERSITY WHICH HE ATTENDED AT NIGHT WHILE WORKING AS A MALACOLOGIST AT THE SMITHSONIAN INSTITUTION WHICH HAS THE WORLD'S LARGEST SHELL COLLECTION IN THE EARLY 1950S A PUBLISHER ASKED HIM TO WRITE A SEASHELL GUIDE THE BOOK AMERICAN SEASHELLS CAME OUT IN 1954 AND LAUNCHED HIS WRITING CAREER IN THE POPULAR REALM IN THE NONPOPULAR REALM HE ALREADY HAD WRITTEN SUCH WORKS AS HANDBOOK OF MEDICALLY IMPORTANT MOLLUSKS OF THE ORIENT AND WESTERN PACIFIC YOU WRITE A BOOK HE SAYS BY THE TIME YOU WRITE TWO OR THREE EVERYBODY THINKS YOU MUST BE A GURU EIGHT OR SO OF HIS BOOKS ARE STILL IN PRINT SOME OF THEM PUBLISHED BY AMERICAN MALACOLOGISTS INC A SMALL PUBLISHING CONCERN HE OWNS AND RUNS WITH HIS WIFE CECELIA ROYALTIES HE SAYS HAVE NEVER AMOUNTED TO MORE THAN A FEW THOUSAND DOLLARS A YEAR THE BOOKS HAVE MADE HIM A CELEBRITY OF SORTS HE SAYS HE APPEARED TWICE ON THE OLD TELEVISION PROGRAM WHAT'S MY LINE THE FIRST TIME WAS FOR SHELLS WHICH THE PANEL GUESSED THE SECOND WAS FOR HIS HOBBY OF COLLECTING PAPER CLIPS WHICH THE PANEL DIDN'T GUESS ALTHOUGH HE SAYS DOROTHY KILGALLEN GOT AS FAR AS BOTTLE TOPS DR ABBOTT SAYS HE INTENDS TO REMAIN ACTIVE IN MALACOLOGY AS LONG AS MY HEALTH HOLDS UP WHICH TO JUDGE FROM HIS CURRENT ENERGY LEVEL COULD BE A LONG TIME IT'S LIKE A PHYSICIAN'S OR A WRITER'S CAREER HE SAYS OF HIS PURSUIT IT NEVER STOPS 9403180073 940318 CALPERS OPPOSES KEY PART OF PRESIDENT'S HEALTH PLAN SACRAMENTO CALIF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM SAID IT IS OPPOSED TO THE CENTERPIECE OF PRESIDENT CLINTON'S HEALTH PLAN THE MANDATED REGIONAL ALLIANCES THAT WOULD BUY MEDICAL COVERAGE FOR GROUPS OF EMPLOYEES THE PRESIDENT HAS CITED THE HUGE PENSION FUND KNOWN AS CALPERS AS A MODEL HEALTHPURCHASING ALLIANCE BUT THE CALPERS PROGRAM WOULD BE ELIMINATED BY HIS PROPOSED REFORM WHICH REQUIRES ALL PUBLIC EMPLOYEES AND RETIREES TO OBTAIN HEALTH CARE THROUGH MANDATORY REGIONAL ALLIANCES BOARD PRESIDENT WILLIAM D CRIST SAID THAT CALPERS SUPPORTED THE GOAL OF MR CLINTON'S PROPOSAL BUT ADDED IN A STATEMENT WE HAVE CONCERNS ABOUT THE IMPACT OF HIS REFORM PROPOSAL ON OUR SUCCESSFUL COSTEFFECTIVE HEALTHPROGRAMAND THE ALMOST ONE MILLION CALIFORNIANS IT REPRESENTS 9403180072 940318 LETTERS TO THE EDITOR SCHOOL REFORM BILLS A GOLDEN OPPORTUNITY IN A CLASS OPPORTUNITY TO SUE EDITORIAL PAGE MARCH 8 CHARLES EM KOLB REFERS TO MY PARTICIPATION AT A NATIONAL ACADEMY OF SCIENCES PANEL DISCUSSION ENTITLED OPPORTUNITY TO LEARN OPPORTUNITY TO SUE TO SUPPORT HIS ARGUMENT THAT THE OPPORTUNITY TO LEARN STANDARDS IN THE CLINTON ADMINISTRATION'S SCHOOL REFORM BILLS NOW PENDING IN CONGRESS ARE A MISGUIDED EFFORT TO IMPROVE SCHOOLS THAT WILL RESULT ONLY IN MORE LITIGATION HAD MR KOLB BOTHERED TO ATTEND THE MEETING BEFORE WRITING HE WOULD HAVE LEARNED THAT THE TITLE HE ATTACKS WAS INTENDED TO FRAME THE ISSUE NOT ANSWER IT AND THAT MY PRIMARY POINT IS THAT OPPORTUNITY TO LEARN STANDARDS ARE NOT AN OPPORTUNITY TO SUE HE WOULD HAVE LEARNED FURTHER THAT IT IS THE BILLS' SEPARATE CONTENT AND PERFORMANCE STANDARDS THROUGH WHICH STATES NOT THE FEDERAL GOVERNMENT WILL DEFINE WHAT STUDENTS SHOULD KNOW AND BE ABLE TO DO THAT WILL BE OF PRIMARY INTEREST TO THE COURTS OPPORTUNITYTOLEARN STANDARDS ARE IMPORTANT BECAUSE THEY RECOGNIZE THAT MANY SCHOOL DISTRICTS MOST OFTEN THOSE SERVING POOR STUDENTS LACK THE PROGRAMS PERSONNEL AND RESOURCES THAT STUDENTS NEED IN ORDER TO MEET THE NEW CONTENT STANDARDS FINALLY HAD HE COME TO THE CONFERENCE HE WOULD HAVE LEARNED THAT ENACTMENT OF THESE BILLS WILL ACHIEVE EXACTLY WHAT HE WANTS THEY WILL FOCUS THE ATTENTION OF THE COUNTRY AND ALSO THE COURTS UPON EDUCATIONAL OUTCOMES BUT HE DIDN'T WAIT TO HEAR WHAT I HAD TO SAY HIS COLUMN APPEARED THE DAY BEFORE I SPOKE AND ALTHOUGH HE REGISTERED FOR THE CONFERENCE HE DIDN'T EVEN BOTHER TO ATTEND 9403180071 940318 INTERNATIONAL TALK OF KASHMIR CHILLS USINDIA RAPPORT NEW DELHI SEES POLITICAL SHIFT IN HUMANRIGHTS DEBATE BY JOHN BUSSEY AND SUMAN DUBEY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW DELHI TO GET AN IDEA OF HOW TENSE RELATIONS BETWEEN INDIA AND THE US ARE THESE DAYS PICK UP A COPY OF SUNDAY MAGAZINE A NATIONAL NEWSWEEKLY PUBLISHED OUT OF CALCUTTA DOMINATING THE COVER IS A PHOTO OF BILL CLINTON COMPLETE WITH HORNS AND FANGS YANKEE DEVIL ASKS THE HEADLINE OR LISTEN AS AN INDIAN INDUSTRIALIST IN BOMBAY BUTTONHOLES AN AMERICAN VISITOR AT A DINNER PARTY THOSE ASSES IN THE STATE DEPARTMENT HE SAYS ANGRILY WAVING A FINGER IN THE AIR WHY ARE THEY AGAINST INDIA IT'S GETTING TO THE POINT THAT A JOINT VENTURE IN INDIA FLYING THE US FLAG WOULD GET FIREBOMBED THESE ARE PASSIONATE TIMES IN SOUTH ASIA WHERE INDIA THE WORLD'S LARGEST DEMOCRACY IS UNDERGOING A DEEPLY WRENCHING SHIFT FROM SOCIALISM TO A FREEMARKET ECONOMY ALOOF FROM THE US DURING THE COLD WAR THE NATION HAS PUT ON A NEW FACE THE OLD FABIAN SOCIALISTS IN THE BUREAUCRACY NOW EAGERLY TALK OF PRIVATIZATION FOREIGN INVESTMENT AND THE CAPITALIST FLAG THEY HAVE RAISED OVER INDIA BUT MANY OF THEM ALSO COMPLAIN THAT WASHINGTON FAR FROM EMBRACING INDIA HAS EITHER BY DESIGN OR MISSTEP RECENTLY DRIVEN A WEDGE BETWEEN THE TWO COUNTRIES BY REPEATEDLY CRITICIZING NEW DELHI'S HUMANRIGHTS RECORD AND QUESTIONING THE LEGALITY OF ITS CLAIM TO JAMMU AND KASHMIR A BRUTALIZED LAND CLAIMED BY BOTH PAKISTAN AND INDIA MATTERS GOT SO HEATED RECENTLY THAT AN INFURIATED INDIAN GOVERNMENT ASKED THE US EMBASSY IN NEW DELHI WHETHER THE US WAS QUESTIONING THE TERRITORIAL UNITY AND INTEGRITY OF INDIA ULTRASENSITIVITY ABOUNDS IN INDIA'S PARLIAMENT AND PRESS IN PART A LEGACY OF THE US'S CLOSE RELATIONSHIP WITH PAKISTAN AND OF INDIA'S LOSS OF A POWERFUL PATRON THE SOVIET UNION IT'S NO SURPRISE THEN THAT INDIA HAS SEIZED ON WASHINGTON'S YEARLONG FAILURE TO POST AN AMBASSADOR TO THIS NATION OF 890 MILLION AS YET ANOTHER SIGN OF WASHINGTON'S TILT AWAY FROM NEW DELHI LATE YESTERDAY CLINTON ADMINISTRATION OFFICIALS SAID FRANK WISNER THE PENTAGON'S TOP POLICY OFFICIAL WOULD BE NOMINATED AS AMBASSADOR TO INDIA THE BUSINESS ELITE HAS EVEN BEGUN WORRYING THAT DETERIORATING POLITICAL TIES MIGHT THREATEN THE BLOSSOMING ECONOMIC RELATIONSHIP BETWEEN THE TWO COUNTRIES AND ALSO HURT AMERICA'S BROADER INFLUENCE IN THIS SOMETIMES VOLATILE REGION FOREIGN MINISTRY OFFICIALS MEANWHILE ARE GRITTING THEIR TEETH IN ADVANCE OF THE ARRIVAL IN NEW DELHI NEXT WEEK OF ROBIN RAPHEL THE ASSISTANT SECRETARY OF STATE FOR SOUTH ASIAN AFFAIRS AND THE FOCUS OF MUCH OF INDIA'S DISPLEASURE THE MINISTRY HOPES TO PATCH UP MATTERS BUT BUREAUCRATS HERE ALSO WORRY THAT MS RAPHEL MAY INSTEAD PROVE A LIGHTNING ROD FOR YET MORE CONTROVERSY ONE US DIPLOMAT IN INDIA ACKNOWLEDGES WE'RE GOING THROUGH A PUBLIC HEARTBURN PERIOD INDIAN OFFICIALS THE DIPLOMAT ADDS HAVE BEEN RECEIVING SOME SIGNALS WE'RE NOT SENDING THE PROBLEMS BEGAN IN SEPTEMBER WHEN PRESIDENT CLINTON ANGERED INDIA BY REFERRING TO ETHNIC CONFLICT IN KASHMIR IN AN ADDRESS BEFORE THE UNITED NATIONS GENERAL ASSEMBLY IN DECEMBER IN WHAT US DIPLOMATS HERE SAY WAS A ROUTINE WHITE HOUSE FORMLETTER RESPONSE MR CLINTON ANSWERED A LETTER FROM GHULAM NABI FAI AN AMERICAN CITIZEN ASSOCIATED WITH THE KASHMIRI ACTION COUNCIL SAYING HE LOOKED FORWARD TO WORKING WITH MR GHULAM TO BRING PEACE TO KASHMIR INDIA'S AMBASSADOR TO THE US COMPLAINED TO THE STATE DEPARTMENT CLAIMING THE ACTION COUNCIL WAS A FRONT FOR GROUPS PROMOTING MILITANCY IN KASHMIR THEN IN FEBRUARY MR CLINTON WROTE TO REP PETER BLUTE R MASS THAT THE TREATMENT OF THE SIKH MINORITY IN INDIA IS ONE OF THE IMPORTANT HUMANRIGHTS ISSUES ON OUR AGENDA WITH INDIA AND THAT SAME MONTH MR CLINTON ACCEPTED THE CREDENTIALS OF PAKISTAN'S NEW AMBASSADOR NOTING WE SHARE PAKISTAN'S CONCERN ABOUT HUMANRIGHTS ABUSES IN KASHMIR ALL OF THIS GENERATED HEATED CRITICISM IN INDIA AS DID REMARKS BY MS RAPHEL IN OCTOBER DURING AN OFFTHERECORD BRIEFING SHE HELD IN WASHINGTON MS RAPHEL WAS PRESSED BY AN INDIAN REPORTER TO COMMENT ON KASHMIR WE VIEW THE WHOLE OF KASHMIR AS DISPUTED TERRITORY THE STATUS OF WHICH NEEDS TO BE RESOLVED SHE SAID REPEATING US POLICY THEN REFERRING TO THE ADMINISTRATIVE MEANS BY WHICH JAMMU AND KASHMIR JOINED INDIA AT THE TIME OF THE PARTITION IN 1947 SHE ADDED WE DO NOT RECOGNIZE THAT INSTRUMENT OF ACCESSION AS MEANING THAT KASHMIR IS FOREVER MORE AN INTEGRAL PART OF INDIA THE REPORTER PRINTED THE REMARK MUCH TO THE CHAGRIN OF SOME OF MS RAPHEL'S COLLEAGUES WHO FELT SHE HAD BEEN A BIT TOO BLUNT ON A COMPLEX ISSUE THE JAMMU AND KASHMIR REGION LOCATED AT THE NORTHERN TIP OF INDIA AND OFTEN REFERRED TO JUST AS KASHMIR RIVALS THE MIDDLE EAST IN ITS TORTURED MODERNDAY HISTORY THE LAND WAS ONCE A PRINCELY STATE WHERE A HINDU MAHARAJA GOVERNED A LARGELY MUSLIM POPULATION THOUGH MUSLIMS ARE NOT DOMINANT IN ALL PARTS OF THE STATE KASHMIR LIKE OTHER PRINCELY STATES WHICH HAD SPECIAL POWERS DURING BRITISH RULE WAS GIVEN THE OPTION OF JOINING INDIA OR PAKISTAN WHEN THE TWO NATIONS WERE CARVED FROM BRITISH INDIA IN 1947 THE RULER OF KASHMIR DELAYED IRREGULAR FORCES FROM MUSLIM PAKISTAN INVADED TO CLAIM THE TERRITORY THE RATTLED MAHARAJA OF KASHMIR QUICKLY SIGNED AN INSTRUMENT OF ACCESSION JOINING THE STATE TO INDIA INDIA SENT IN TROOPS TO BATTLE THE PAKISTANIS ULTIMATELY THE TWO NATIONS FOUGHT TO A DRAW AND THE UN CREATED A CEASEFIRE LINE WITH THE BULK OF JAMMU AND KASHMIR IN INDIA AND THE REST ADMINISTERED BY PAKISTAN CHINA LATER TOOK CONTROL OF PART OF THE REGION OVER THE YEARS THE AREA HAS BEEN THE WELLSPRING FOR MUCH UN DEBATE AND REPEATED CLASHES BETWEEN INDIA AND PAKISTAN INCLUDING TWO WARS A VIOLENT MUSLIM SEPARATIST MOVEMENT HAS ALSO TAKEN HOLD PARTICULARLY IN THE KASHMIR VALLEY BOTH INDIA AND THE SEPARATISTS HAVE BEEN ACCUSED OF HUMANRIGHTS VIOLATIONS THERE MS RAPHEL DIVED HEADLONG INTO THIS MORASS WE ARE HEARING IN RAPHEL'S STATEMENT A QUALITATIVE SHIFT IN US POSITION THE INDIAN GOVERNMENT DECLARED MS RAPHEL WASN'T AVAILABLE FOR COMMENT BUT A STATE DEPARTMENT OFFICIAL YESTERDAY SAID ROBIN WASN'T TRYING TO BE CONFRONTATIONAL HE SAID SHE AND PRESIDENT CLINTON HAVE MERELY REITERATED OFTSTATED US POLICY KASHMIR IS DISPUTED TERRITORY FOR WHICH INDIA AND PAKISTAN MUST FIND THEIR OWN BILATERAL SOLUTION WE DON'T ACCEPT THAT THE INSTRUMENT OF ACCESSION MEANS THAT KASHMIR IS PART OF INDIA HE SAYS OVERALL THE RELATIONSHIP BETWEEN THE US AND INDIA IN SUBSTANTIVE TERMS HAS NEVER BEEN BETTER ADDS A US DIPLOMAT IN INDIA WE'RE ADDING DEPTH TO PLACES WHERE WE AGREE I DON'T THINK YOU CAN UNDERESTIMATE THE VALUE OF THE COMMERCIAL RELATIONSHIP INDEED US INVESTMENT IN INDIA CONTINUES TO INCREASE RAPIDLY AMOUNTING TO SOME 1 BILLION IN COMMITMENTS IN 1993 THAT SAID INDIA'S PRIME MINISTER TOOK A MOMENT IN PARLIAMENT A FEW DAYS AGO TO SEND A CLEAR SIGNAL TO THE US AND TO THE DIPLOMATS ARRIVING FROM WASHINGTON NEXT WEEK KASHMIR IS INDIA'S HE INSISTED THE ACCESSION IS FINAL AND THE ONLY ISSUE LEFT TO NEGOTIATE IS HOW AND WHEN PAKISTAN WILL WITHDRAW 9403180069 940318 POTOMAC WATCH SANS TELESCOPE' WILL JANET RENO FIND HER WAY BY PAUL A GIGOT JANET RENO THE OSTENSIBLE ATTORNEY GENERAL HAS HAD THE MOST DRAMATIC POLITICAL FALL SINCE KING LEAR IN LESS THAN A YEAR SHE'S GONE FROM A TIME MAGAZINE HEROINE TO WEBSTER HUBBELL'S DE FACTO DEPUTY BUT WITH PRESIDENT CLINTON'S GOLFING PARTNER NOW DEPARTING MS RENO HAS A CHANCE TO REBUILD THE REPUTATION SHE HAD AS A FLORIDA PROSECUTOR THE ROOT OF HER PROBLEMS IN WASHINGTON ISN'T EVEN HER FAULT AFTER ALL IN HIRING HER THOUGH THEY'D NEVER MET MR CLINTON BROKE A CARDINAL RULE OF THE PRESIDENCY NAME SOMEONE TO THE SENSITIVE ATTORNEY GENERALSHIP WHOM YOU TRUST IMPLICITLY JFK HAD BROTHER BOBBY JIMMY CARTER CHOSE GRIFFIN BELL WHILE RONALD REAGAN NAMED WILLIAM FRENCH SMITH AND ED MEESE INSTEAD MR CLINTON WANTED A WOMAN IN THE JOB TO SATISFY HIS PLEDGE OF DIVERSITY YET HE STILL NEEDED A JUSTICE DEPARTMENT HE COULD TRUST SO HE INSTALLED HIS PAL MR HUBBELL IN THE NUMBER THREE JOB AS HIS EYES AND EARS THAT UNDERCUT BOTH MS RENO'S AUTHORITY INSIDE JUSTICE AND HER CREDIBILITY OUTSIDE IT BUT WITH WHITEWATER SEEPING INTO THE SHIP OF STATE MS RENO SUDDENLY HAS A CHANCE TO RECLAIM HER CLOUT LET'S LOOK AT THREE WAYS SHE COULD NOW SEND A SIGNAL THAT SHE'S BECOME MORE THAN A NOMINAL ATTORNEY GENERAL NO MORE CLINCEST MS RENO'S AUTHORITY HAS SUFFERED BECAUSE JUSTICE HAS BEEN OVERSTUFFED WITH FRIENDS OF BILL ONE JOKE HAS IT THAT THE DEPARTMENT HAS JOINED MCI'S FRIENDS AND FAMILY PLAN SINCE EVERYONE'S SO CLOSE ANNE BINGAMAN THE ANTITRUST CHIEF IS MARRIED TO NEW MEXICO SEN JEFF BINGAMAN AND IS PART OF HILLARY RODHAM CLINTON'S LEGAL NETWORK ELEANOR ACHESON HEAD OF POLICY WAS THE FIRST LADY'S WELLESLEY CLASSMATE AL GORE'S BROTHERINLAW FRANK HUNGER RUNS THE CIVIL SECTION AND SHEILA FOSTER ANTHONY THE LEAD LIAISON WITH CONGRESS IS THE SISTER OF THE LATE VINCENT FOSTER AND IS MARRIED TO FORMER ARKANSAS REP BERYL ANTHONY NO WONDER PHIL HEYMANN AN OUTSIDER DIDN'T FEEL HE COULD MAKE A DIFFERENCE AS DEPUTY ATTORNEY GENERAL AND QUIT IN SELECTING A REPLACEMENT FOR MR HUBBELL MS RENO WOULD REASSURE EVERYONE IF SHE CHOSE SOMEONE FROM BEYOND THE BELTWAY AND LITTLE ROCK JAMIE GORELICK SOONTOBE DEPUTY ATTORNEY GENERAL IS A REFERRAL FROM ELSEWHERE IN THE ADMINISTRATION AND WON'T FILL THAT BILL MS RENO NEEDS HER OWN LLOYD CUTLERTYPE AS THEY LIKE TO SAY IN THE WHITE HOUSE NOMINATE GARY GAERTNER MR CLINTON SAYS HE'S OPEN TO JUDGES OF ALL POLITICAL VIEWS BUT WHEN REP DICK GEPHARDT RECOMMENDED THE CONSERVATIVE ST LOUIS JUDGE FOR THE FEDERAL BENCH LIBERAL INTERESTS COMMENCED A LOCAL BORKING HIS NOMINATION NOW LIES IN LIMBO AS THE WHITE HOUSE DUCKS THE PRESSURE IS MS RENO OUT OF THE JUDGEPICKING LOOP STAND UP TO JOHN DINGELL WHEN WEBB HUBBELL WAS ACCUSED OF OVERBILLING HIS EXPENSES BY PARTNERS IN THE ROSE LAW FIRM MS RENO JUMPED TO HIS DEFENSE BUT WHEN CAREER PROSECUTORS AT JUSTICE CAME UNDER ASSAULT BY DEMOCRATS ON CAPITOL HILL SHE DOVE FOR THE TALL GRASS MR DINGELL IS ON ONE OF HIS PERIODIC JIHADS THIS TIME AGAINST PROSECUTORS IN THE ENVIRONMENTAL CRIMES SECTION HE THINKS THEY SHOULD BE THROWING MORE AMERICANS IN JAIL GENERAL RENO TURNED THE DISPUTE OVER TO MR HUBBELL WHO WAS ONLY TOO HAPPY TO OBLIGE A CONGRESSIONAL BARON ESPECIALLY ONE VITAL TO PASSING A HEALTH CARE BILL BY LETTING THE DINGELL STAFF INTERROGATE CAREER PROSECUTORS ABOUT THEIR CASES I HAVEN'T YET FOUND A LAWYER WHO DOESN'T THINK THIS IS AN OUTRAGE THE FOUNDERS SEPARATED THE POWER TO PROSECUTE FROM THE POWER TO LEGISLATE PRECISELY TO AVOID POLITICAL PROSECUTIONS IF CAREER PROSECUTORS KNOW THEY'LL BE PUBLICLY KEELHAULED BY JOHN DINGELL FOR REFUSING TO INDICT THEY'LL INDICT IN EVERY CLOSE CALL PROSECUTORIAL DISCRETION WHICH IS AT THE HEART OF ANY JUSTICE DEPARTMENT GOES OUT THE WINDOW YET SOURCES INSIDE JUSTICE SAY THE DEPARTMENT HAS NOW DECIDED TO CAVE ON A NEW DINGELL SUBPOENA TO TURN OVER ALL INTERNAL MEMORANDA EVEN THOSE DISCUSSING HOW TO RESPOND TO THE DINGELL INQUIRIES ONE LAWYER IN THE OFFICE CALLS IT A COMPLETE BREACH OF TRUST WITH CAREER ATTORNEYS WHO WROTE THE MEMOS IN CONFIDENCE MS RENO WILL ALSO HAVE TO DECIDE WHETHER TO MAKE A SACRIFICE OF NEIL CARTUSCIELLO THE RANKING CAREER LAWYER IN THE ENVIRONMENTAL SECTION MR DINGELL WANTS HIS HEAD EVEN THOUGH A REPORT BY FOUR CAREER ATTORNEYS AT JUSTICE EXONERATED HIM THIS WEEK THE DINGELL ACCUSATIONS STAND AS EXAMPLES OF HOW MISLEADING OR INCOMPLETE TESTIMONY CAN WRONGLY IMPUGN THE PROFESSIONAL JUDGMENT AND CONDUCT OF PROSECUTORS THE REPORT SAID THIS DISPUTE ISN'T ABOUT IDEOLOGY BECAUSE MR CARTUSCIELLO IS NO REAGANITE HE PIONEERED THE USE OF THE RICO STATUTES IN FINANCIAL CASES DURING THE 1980S NOTABLY THE PRINCETONNEWPORT CASE SO WHY WON'T MS RENO DEFEND AN ABLE NONPARTISAN CAREER PROSECUTOR AT HER CONFIRMATION LAST YEAR MS RENO SNAPPED AT ONE QUESTIONER SAYING I KEEP POLITICS OUT OF WHAT I DO SENATOR FREED FROM THE INTERFERENCE OF THE WHITE HOUSE HUBBELL TELESCOPE SHE NOW HAS A CHANCE TO PROVE IT 9403180068 940318 INTERNATIONAL SWEDEN'S CONSUMER PRICE INDEX STOCKHOLM SWEDEN'S CONSUMER PRICE INDEX ROSE 03 IN FEBRUARY FROM JANUARY ACCORDING TO FIGURES RELEASED BY THE NATIONAL STATISTICS AGENCY SCB A MONTH EARLIER PRICES INCREASED 05 THE FIGURES BROUGHT THE YEARONYEAR INFLATION RATE TO 19 IN FEBRUARY UNCHANGED FROM JANUARY BUT DOWN FROM 5 IN FEBRUARY A YEAR EARLIER THE AGENCY SAID 9403180067 940318 BUSINESS BRIEFS A CAMCO INTERNATIONAL INC UNIT RECEIVED TWO ORDERS TOTALING 248 MILLION FOR ELECTRIC SUBMERSIBLE PUMP SYSTEMS FROM A RUSSIAN OIL PRODUCTION ASSOCIATION IN WESTERN SIBERIA HANDLEMAN CO ESTABLISHED A DISTRIBUTION COMPANY IN MEXICO TO SUPPLY MUSIC AND VIDEO PRODUCTS TO RETAIL OUTLETS THERE NATIONAL BANK OF CANADA SAID IT IS OPENING A REPRESENTATIVE OFFICE IN MEXICO CITY TO HELP COMPANIES TAKE FULL ADVANTAGE OF THE OPPORTUNITIES CREATED BY THE NORTH AMERICAN FREE TRADE AGREEMENT GREAT LAKES CHEMICAL CORP REACHED A DEFINITIVE AGREEMENT TO BUY THE POLYMER ADDITIVES AND ASSOCIATED SPECIALTY CHEMICALS BUSINESS FROM ITALY'S ENICHEM SYNTHESIS SPA FOR ABOUT 90 MILLION 9403180066 940318 ABREAST OF THE MARKET INDUSTRIALS CLIMB 1699 ON GAINS IN ECONOMICALLY SENSITIVE ISSUES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK ECONOMICALLY SENSITIVE STOCKS AND OILRELATED ISSUES LIFTED THE MARKET AFTER MORE REASSURING NEWS ON INFLATION STOCKS FOLLOWED BONDS BACK AND FORTH EARLY IN THE DAY BUT MANAGED TO REMAIN HIGHER IN THE AFTERNOON EVEN AS THE DEBT MARKET FADED THE DOW JONES INDUSTRIAL AVERAGE ADDED 1699 OR 044 TO 386514 ITS HIGHEST CLOSE SINCE FEB 23 THE TREASURY'S 30YEAR BOND LOST 3/8 POINT PUSHING UP ITS YIELD TO 682 BUT ANALYSTS PLAYED DOWN THE IMPORTANCE OF THE DIVERGENCE AND ATTRIBUTED A LARGE PART OF THE STOCK MARKET OPTIMISM TO HOPES THAT INTEREST RATES HAVE BEGUN TO STABILIZE AFTER THE BIG INCREASES LAST MONTH AND EARLY IN MARCH AN ECONOMIC READING FROM THE FEDERAL RESERVE BANK OF PHILADELPHIA HELPED REASSURE THAT BELIEF IT INCLUDED INDICATIONS THAT PRODUCT PRICES HAVE MODERATED IN THE PHILADELPHIA REGION BROADBASED INDEXES THAT TRACK MOSTLY NEW YORK STOCK EXCHANGE ISSUES ALSO RALLIED BUT THEY COULDN'T KEEP PACE WITH THE ADVANCE ON THE NASDAQ STOCK MARKET STRENGTH IN TECHNOLOGY AND TELECOMMUNICATIONS SHARES HELPED CARRY THE NASDAQ COMPOSITE INDEX UP 486 OR 061 TO 80385 ABOVE ITS FORMER RECORD HIGH OF 80047 WHICH HAD STOOD SINCE JAN 31 BIG GAINERS ON NASDAQ INCLUDED TELECOMMUNICATIONS CLASS A WHICH ROSE 1 1/4 TO 24 1/4 ORACLE UP 1 1/4 TO 34 3/4 AND LOTUS DEVELOPMENT UP 5 3/4 TO 85 1/2 AFTER IT DISCLOSED A MARKETING AGREEMENT WITH AMERICAN TELEPHONE & TELEGRAPH AT&T WAS UP 3/4 TO 53 1/2 A RALLY IN CYCLICAL STOCKS GAINED STRENGTH IN THE AFTERNOON HELPING THE STOCK MARKET TO OUTPERFORM BONDS THE ECONOMICALLY SENSITIVE GROUP BENEFITED IN PART FROM NEWS THAT CATERPILLAR IS ADDING WORKERS TO KEEP UP WITH CUSTOMER DEMAND AFTER A TRADING HALT CATERPILLAR REOPENED SHARPLY HIGHER IN THE LAST MINUTES OF TRADING TO LIFT THE INDUSTRIAL AVERAGE TO ITS SESSION HIGH THE STOCK ROSE 3 1/4 TO 119 1/2 AMONG OTHER CYCLICALS ALUMINUM CO OF AMERICA ROSE 1 3/4 TO 75 1/2 AND INTERNATIONAL PAPER ADVANCED 7/8 TO 69 1/8 ENERGY STOCKS MEANWHILE WERE LIFTED BY POSITIVE COMMENTS FROM ANALYSTS AT SEVERAL MAJOR BROKERAGE FIRMS INCLUDING BEAR STEARNS WHICH RAISED INVESTMENT RATINGS ON SEVERAL MAJOR PRODUCERS CHEVRON RALLIED 1 3/4 TO 91 1/2 AMOCO 3/4 TO 55 3/8 ATLANTIC RICHFIELD 2 3/4 TO 101 7/8 AND KERRMCGEE 1 1/8 TO 46 3/4 THE STANDARD & POOR'S 500 STOCK INDEX GAINED 148 OR 032 TO 47090 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 077 OR 030 TO 26111 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADDED 081 OR 017 TO 47063 US SURGICAL RALLIED FOR A SECOND STRAIGHT DAY GAINING 1 5/8 TO 20 THE STOCK WAS UP 2 1/4 WEDNESDAY AFTER THE MEDICAL DEVICE COMPANY SAID ITS RESTRUCTURING EFFORTS WERE NEARLY COMPLETE AND PREDICTED THAT ITS DEFICIT FOR THE FIRST QUARTER WILL BE NARROWER THAN THE 26 CENTASHARE LOSS FROM OPERATIONS THAT IT EXPECTS TO REPORT FOR THE FOURTH QUARTER THE COMPANY RELEASED MORE DETAILS ON 1993 RESULTS YESTERDAY MORNING NORTHWEST AIRLINES SOLD 20 MILLION SHARES IN AN INITIAL PUBLIC OFFERING THAT WAS PRICED AT 13 A SHARE AS REPORTED IN THIS NEWSPAPER YESTERDAY THE AIRLINE COMPANY WAS FORCED TO SLASH THE ASKING PRICE OF ITS IPO TO BETWEEN 13 AND 14 A SHARE FROM AN EARLIER RANGE OF BETWEEN 19 AND 21 PEOPLE FAMILIAR WITH THE DEAL SAID KING WORLD PRODUCTIONS JUMPED 1 5/8 TO 36 7/8 AFTER CNBC CABLE TELEVISION REPORTED RUMORS THAT THE COMPANY MIGHT BE ACQUIRED BY CAPITAL CITIES/ABC OR ANOTHER TV NETWORK SPOKESMEN FOR KING WORLD AND CAPITAL/CITIES DECLINED TO COMMENT ON THE TALK SHARES OF CAPITAL CITIES ROSE 1/8 TO 705 COMPUWARE RALLIED 6 1/8 TO 42 3/4 ON NASDAQ FOLLOWING NEWS THAT THE COMPANY AGREED TO BUY UNIFACE HOLDING A CLOSELY HELD DUTCH COMPANY COMPUWARE WILL PAY ABOUT 67 MILLION COMMON SHARES AIRBORNE FREIGHT LOST 1 1/4 TO 36 3/4 AFTER JAPAN'S MITSUI & CO SOLD A 14 MILLIONSHARE BLOCK OF THE SEATTLE PACKAGE AND DOCUMENTDELIVERY COMPANY'S STOCK A SPOKESMAN FOR AIRBORNE SAID HE DIDN'T KNOW THE IDENTITY OF THE BUYER HEALTHTRUST JUMPED 1 1/2 TO 31 1/8 THE HOSPITAL COMPANY REPORTED EARNINGS OF 56 CENTS A SHARE FOR ITS SECOND QUARTER ENDED FEB 28 THAT WAS UP FROM 45 CENTS A YEAR AGO AND ABOVE THE 53 CENT MEAN ESTIMATE OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM CENTEX ADVANCED 1 3/4 TO 35 7/8 THE HOME BUILDING CONCERN WEDNESDAY MADE ITS INITIAL SALES PRESENTATION TIED TO ITS PLANNED INITIAL PUBLIC OFFERING FOR ITS CONSTRUCTION PRODUCTS UNIT TALBOTS INCREASED 1 1/8 TO 32 7/8 AFTER IT REPORTED FOURTHQUARTER EARNINGS OF 18 CENTS A SHARE A YEAR AGO THE APPAREL STORE OPERATOR HAD A PROFIT OF 12 CENTS A SHARE 9403180065 940316 EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9403180063 940318 REVIEW & OUTLOOK EDITORIAL CONGRATULATIONS DANNY CONGRATULATIONS ARE DUE TO REP DANNY ROSTENKOWSKI FOR HIS PRIMARY VICTORY TUESDAY PULLING 50 OF THE VOTE HE SWAMPED FOUR CHALLENGERS IN CASE YOU'VE FORGOTTEN THE WAYS AND MEANS CHAIRMAN CITED THE FIFTH AMENDMENT IN REFUSING TO APPEAR BEFORE A GRAND JURY PROBING ALLEGATIONS ARISING FROM THE HOUSE POST OFFICE SCANDAL THE INVESTIGATION IS NOW TWO YEARS OLD AND REP ROSTENKOWSKI'S STONEWALL OUTLASTED THE FIRST GRAND JURY HIS CONGRESSIONAL POSITION IS CRUCIAL TO THE AGENDA OF PRESIDENT CLINTON WHO CAMPAIGNED IN HIS DISTRICT IT'S ALSO PERCEIVED AS SO IMPORTANT TO THE CITY OF CHICAGO THAT BOTH THE SUNTIMES AND TRIBUNE ENDORSED HIM ON THE DAY BEFORE THE ELECTION HE UNVEILED A SURPLUS ARMY HELICOPTER FOR THE CHICAGO FIRE DEPARTMENT THOUGH THE TRIBUNE REPORTED THAT THE CHOPPER ON DISPLAY AT MEIGS FIELD WAS BORROWED AND THAT HIS DOD GIFT WON'T ACTUALLY ARRIVE FOR ANOTHER TWO MONTHS WHAT REMAINS OF THE CHICAGO POLITICAL MACHINE FLOODED HIS DISTRICT WITH SOME 1000 PRECINCT WORKERS TO GET OUT HIS SUPPORTERS IN WHAT PROVED TO BE A SMALL TURNOUT AND IT ALL WORKED MAYBE IT WILL BE REVERSED IN THE FALL SINCE HE AND REPUBLICAN MIKE FLANAGAN WILL SQUARE OFF IN A DISTRICT THAT WENT FOR GEORGE BUSH IN 1988 BUT SO FAR THE LESSON AT LEAST THE ONE SURE TO BE DRAWN BY THE REST OF THE POLS IS THAT DESPITE THE ELECTORATE'S DISGUST WITH WASHINGTON IN GENERAL AND CONGRESS IN PARTICULAR ENOUGH PORK BARREL CAN STILL TRUMP ETHICS 9403180062 940318 BUSINESS BRIEF SPHINX PHARMACEUTICALS CORP HOLDERS SUE IN BID TO HALT FIRM'S ACQUISITION BY LILLY SPHINX PHARMACEUTICALS CORP SAID IT HAS BEEN SUED BY SEVERAL SHAREHOLDERS OVER THE COMPANY'S PLANNED ACQUISITION BY ELI LILLY & CO ELI LILLY HAS TENTATIVELY AGREED TO ACQUIRE SPHINX FOR 6 A SHARE A PRICE THAT VALUES THE BIOTECH CONCERN AT ABOUT 80 MILLION YESTERDAY SPHINX SAID THE LAWSUITS FILED IN THE DELAWARE COURT OF CHANCERY SEEK TO HALT THE ACQUISITION THE COMPANY SAID THE LAWSUITS ALLEGE THAT CERTAIN SPHINX OFFICERS AMONG OTHERS BREACHED THEIR FIDUCIARY DUTIES SPHINX DURHAM NC SAID IT BELIEVES MANAGEMENT FULLY SATISFIED ITS RESPONSIBILITIES THAT THE ACQUISITION IS IN THE BEST INTERESTS OF SHAREHOLDERS AND THAT IT INTENDS TO VIGOROUSLY DEFEND AGAINST THE LAWSUITS 9403180061 940318 BUSINESS BRIEF FRANKLIN HOLDING CORP INVESTMENT PARTNERSHIP IS SET TO BE DISSOLVED BY MIDMAY FRANKLIN HOLDING CORP NEW YORK SAID IT AGREED TO END ITS INVESTMENT PARTNERSHIP FORMED IN 1992 FOR THE PURPOSE OF ACQUIRING RADIO STATIONS THE PARTNERSHIP WHICH FRANKLIN DESCRIBED AS SUCCESSFUL ACQUIRED SEVEN SOUTHEASTERN RADIO STATIONS OVER THE PAST 18 MONTHS AND HAS SOLD OR AGREED TO SELL SIX OF THEM AT A SUBSTANTIAL PROFIT FRANKLIN IS A HOLDING COMPANY WITH INTERESTS IN MEDIA PROPERTIES THE DISSOLUTION OF THE PARTNERSHIP EXPECTED TO TAKE PLACE BY MIDMAY WILL GIVE FRANKLIN OWNERSHIP OF THE REMAINING RADIO STATION WRKAFM OF LOUISVILLE KY WHICH THE COMPANY SAID IT WILL USE AS A BASE TO ACQUIRE ADDITIONAL RADIO STATIONS 9403180060 940318 MARKETING & MEDIA ADVERTISING SOME EXECUTIVES FEAR THAT OSCAR MAY LACK SOME LUSTER THIS YEAR BY LAURA BIRD BUYING ADVERTISING TIME ON THE ACADEMY AWARDS TELECAST IS ALMOST AS DIFFICULT AS WANGLING A TICKET TO THE GLITZY AWARDS SHOW BUT THIS YEAR SOME MEDIA AND ENTERTAINMENT EXECUTIVES ARE WONDERING WHETHER OSCAR MAY LOSE SOME OF HIS LUSTER ON MADISON AVENUE ADVERTISERS LOVE THE OSCARS SHOW BECAUSE IT HAS RELIABLY DELIVERED AN ENORMOUS UPSCALE AUDIENCE MORE THAN 60 OF WHOM ARE WOMEN AN EXCLUSIVE CADRE OF NINE ADVERTISERS INCLUDING AMERICAN EXPRESS COCACOLA EASTMAN KODAK AND REVLON REGULARLY LOCKS UP OSCAR ADVERTISING TIME WELL IN ADVANCE A WAITING LIST OF BUYERS FOR ANY UNCLAIMED TIME STARTS FORMING IN AUGUST THIS YEAR 30 SECONDS OF ADVERTISING DURING MONDAY NIGHT'S BROADCAST ON THE ABC NETWORK FETCHED 630000 A 5 INCREASE FROM LAST YEAR BUT THE OSCARS' TRACK RECORD HASN'T STOPPED SOME ENTERTAINMENT EXECUTIVES FROM FRETTING THAT THIS YEAR THE SHOW COULD BE A DISAPPOINTMENT LAST WEEK THE FRONT PAGE OF THE HOLLYWOOD TRADE PAPER VARIETY BLARED TV GETS OSCARCAST JITTERS TV GUIDE PUT THIS YEAR'S NEW OSCAR EMCEE WHOOPI GOLDBERG UNDER THE HEADLINE WHY WHOOPI MAKES 'EM NERVOUS MEDIA EXECUTIVES SAY A NUMBER OF FACTORS MIGHT CONSPIRE TO KEEP VIEWERS AWAY JUST ONE OF THE NOMINEES FOR BEST PICTURE THE FUGITIVE HAD A BIGNAME LEADING MAN AND MASSMARKET APPEAL SOME SAY THE RESULTS SEEM LIKE A FOREGONE CONCLUSION WITH STEVEN SPIELBERG'S SCHINDLER'S LIST THE HEAVY FAVORITE THE TENSION ISN'T THERE COMPLAINS WERNER MICHEL SENIOR VICE PRESIDENT OF NATIONAL BROADCAST AT BOZELL WHOSE CLIENT JC PENNEY IS AN OSCAR REGULAR THERE IS A GENERAL FEELING WE BETTER HOLD OUR BREATH IN ADDITION MS GOLDBERG ISN'T BELIEVED TO HAVE AS MUCH APPEAL AS HER PREDECESSOR BILLY CRYSTAL SHE COULD COST A RATING POINT OR TWO MR MICHEL SAYS AND A NUMBER OF AWARDS SHOWS INCLUDING THE RECENT GRAMMY AND AMERICAN MUSIC AWARDS BROADCASTS FLOPPED IN THE RATINGS PERHAPS SIGNALING THAT HYPEWEARY VIEWERS DON'T HAVE MUCH OF AN APPETITE FOR AWARDS SHOWS THIS YEAR ABC A UNIT OF CAPITAL CITIES/ABC WHICH HAS THE BROADCAST RIGHTS TO THE OSCARS UNTIL 2000 DISMISSES SUCH CONCERNS IT'S THE SILLIEST THING I'VE EVER HEARD SAYS BOB CAGLIERO ABC EXECUTIVE VICE PRESIDENT OVERSEEING NATIONAL AD SALES LAST YEAR'S SHOW SET AN OSCAR RECORD IN THE POSTCABLE ERA BY REACHING 31 OF HOMES WITH TV SETS EVEN IF MONDAY NIGHT'S BROADCAST DOESN'T MATCH THAT IT WILL STILL DELIVER MAJOR MAJOR NUMBERS HE SAYS BUT EVEN IF IT BEATS LAST YEAR'S RECORD THE AUDIENCE FOR THE ACADEMY AWARDS WON'T COME CLOSE IN SHEER SIZE TO MATCHING THAT OF THE SUPER BOWL OR FOR THAT MATTER THE SHOWDOWN ON ICE BETWEEN TONYA HARDING AND NANCY KERRIGAN DURING THE FIRST NIGHT OF WOMEN'S FIGURE SKATING AT LILLEHAMMER NORWAY THIS YEAR STILL THE OSCAR AUDIENCE IS EXCEEDINGLY TEMPTING COMPARED WITH THE AVERAGE PRIMETIME TV SHOW THE OSCARS LAST YEAR DELIVERED MORE THAN THREE TIMES THE NUMBER OF HOUSEHOLDS WITH INCOME OVER 60000 ACCORDING TO AD AGENCY BBDO WHICH DOESN'T HAVE A CLIENT ON THE SHOW THIS YEAR ONE IN FOUR WOMEN BETWEEN THE AGES OF 18 TO 64 WATCHED LAST YEAR PLENTY OF VIEWERS GROAN THROUGH THE THREEHOURS PLUS OF WINDY SPEECHES ILLFITTING FASHIONS AND SCRIPTED CHITCHAT BUT STILL THE ACADEMY AWARDS SHOW IS ONE OF THE FEW MUSTWATCH PROGRAMS OF THE YEAR IT HAS THAT WATER COOLER FACTOR SAYS STEVE SJOBLAD MANAGING DIRECTOR OF FALLON MCELLIGOTT WHOSE LEE JEANS WON A REGULAR SPONSOR'S PLACE LAST YEAR THE FOLLOWING MORNING PEOPLE ARE STANDING AROUND TALKING ABOUT IT TO BE SURE NOT EVERY ADVERTISER RETURNS LIKE CLOCKWORK PEPSICO'S FRITOLAY USED THE OSCARS TO LAUNCH DORITOS TORTILLA THINS LAST YEAR AND TIED THE ADS IN WITH A SAMPLING PROGRAM IN MOVIE THEATERS THIS YEAR THE COMPANY IS STAYING HOME AND REEBOK INTERNATIONAL WHICH HAS USED THE OSCARS TO LAUNCH MAJOR SPRING ADVERTISING ASSAULTS FOR THE PAST TWO YEARS WON'T DO SO THIS YEAR WE OPTED FOR THE WINTER OLYMPICS INSTEAD SAYS DAVID ROPES REEBOK'S VICE PRESIDENT OF ADVERTISING THE REEBOK CAMPAIGN STARRED NANCY KERRIGAN BUT THE OSCARS WON'T BE KERRIGANFREE REVLON IS UNVEILING A NEW CORPORATE CAMPAIGN IN WHICH THE UBIQUITOUS MS KERRIGAN APPEARS SANS SKATES TO ANSWER THE QUESTION WHAT MAKES A WOMAN REVOLUTIONARY HER RESPONSE IT'S HAVING A DREAM THAT NEVER LEAVES YOU OTHER BIG ADVERTISERS LAUNCHING NEW CAMPAIGNS INCLUDE COCACOLA FOR ITS TINY FRESCA BRAND AND GENERAL MOTORS WITH NEW ADS THEMED GENUINE CHEVROLET ADVERTISERS NEW TO THE OSCAR TELECAST WILL INCLUDE SERTA MATTRESSES AND MONSANTO'S ORTHO AND ROUNDUP LAWN AND PLANT PRODUCTS SERTA THE DES PLAINES ILL MATTRESS MAKER SQUEAKED INTO THE SHOW A MONTH AGO ABC NOTIFIED SERTA THAT A SPOT HAD OPENED UP AND GAVE THE COMPANY EXACTLY TWO HOURS TO DECIDE WHETHER TO BUY THE 30 SECONDS IT'S NOT CHEAP BUT WE WERE THRILLED TO BE ABLE TO SECURE A SPOT SAYS SUSAN EBAUGH VICE PRESIDENT OF ADVERTISING PRUDENTIAL INSURANCE CO OF AMERICA HAS BEEN PUSHING ITS OSCAR CONNECTIONS FOR TWO WEEKS NOW THE COMPANY WITH THE PERMISSION OF THE ACADEMY OF MOTION PICTURE ARTS AND SCIENCES HAS BEEN RUNNING VIGNETTES OF OSCAR'S WINNING MOMENTS NEXT TO ITS REGULAR COMMERCIALS IN EFFECT PROMOTING THE SHOW AT THE SAME TIME BUT THE ACADEMY OF MOTION PICTURE ARTS AND SCIENCES HAS NO INTENTION OF GIVING ADVERTISERS FREE REIN THE EVENT HAS AN ELEGANCE AND CLASS WE'RE GOING TO MAINTAIN SAID RIC ROBERTSON EXECUTIVE ADMINISTRATOR AT THE ACADEMY OF MOTION PICTURE ARTS AND SCIENCES IN FACT THE ACADEMY GETS TO APPROVE OF ALL ADVERTISERS IN THE TELECAST AND EVEN EXCLUDES ENTIRE CATEGORIES MOVIE COMPANIES AREN'T ALLOWED HE SAID TO AVOID EVEN THE APPEARANCE OF ANY IMPROPRIETY NEITHER ARE ALCOHOLIC BEVERAGES TO PRESERVE THE RELATIVELY CONSERVATIVE FAMILYCONSCIOUS IMAGE THAT THE ACADEMY WANTS THE SHOW TO PROJECT 9403180059 940318 INTERNATIONAL CHINA DENIES A TRANSFER OF DATA TO NORTH KOREA BEIJING REUTER CHINA DENIED ALLEGATIONS IN A WALL STREET JOURNAL REPORT THAT BEIJING MAY HAVE TRANSFERRED ADVANCED MISSILE TECHNOLOGY TO NORTH KOREA THE REPORT OF THE WALL STREET JOURNAL THAT CHINA POSSIBLY HAD PROVIDED ADVANCED MISSILE TECHNOLOGY TO THE DEMOCRATIC PEOPLE'S REPUBLIC OF KOREA IS TOTALLY GROUNDLESS A FOREIGN MINISTRY SPOKESMAN TOLD THE OFFICIAL XINHUA NEWS AGENCY ON TUEDAY THE WALL STREET JOURNAL SAID SOME ANALYSTS AT THE US DEFENSE INTELLIGENCE AGENCY BELIEVED A NEW LONGRANGE MISSILE BEING DEVELOPED BY NORTH KOREA SHOWED SIGNS OF CHINESE TECHNOLOGY INPUT HOWEVER THE JOURNAL SAID ANALYSTS AT THE CENTRAL INTELLIGENCE AGENCY DISAGREE WITH THIS CONCLUSION AND SAY THE MISSILE COULD HAVE BEEN DEVELOPED DOMESTICALLY CHINA'S OVERSEAS WEAPONS AND MILITARY TECHNOLOGY SALES HAVE BEEN A FOCUS OF CONCERN IN WASHINGTON WHICH HAS PRESSED BEIJING TO FOLLOW A NUMBER OF ANTIPROLIFERATION AGREEMENTS THE ARMS SALES ISSUE IS ALSO AN IMPORTANT FACTOR IN THE US DEBATE OVER EXTENDING CHINA'S MOST FAVORED NATION TRADE STATUS WHICH IS ALREADY TIED TO US DEMANDS FOR IMPROVEMENT IN BEIJING'S HUMANRIGHTS RECORD ALLEGATIONS OF TECHNOLOGY TRANSFER TO NORTH KOREA ARE PARTICULARLY SENSITIVE COMING ON TOP OF PYONGYANG'S ROW WITH THE US AND THE UNITED NATIONS OVER ITS NUCLEAR PROGRAM 9403180058 940318 WHO'S NEWS VINTAGE PETROLEUM INC NAMES HILLE AS CEO OTHER CHANGES MADE TULSA OKLA VINTAGE PETROLEUM INC NAMED ITS PRESIDENT JO BOB HILLE TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER ONE OF SEVERAL TOP MANAGEMENT CHANGES AT THE ENERGY COMPANY MR HILLE 52 YEARS OLD COFOUNDED VINTAGE IN 1983 AND HAD ALSO BEEN CHIEF OPERATING OFFICER HE REMAINS A DIRECTOR HE ASSUMES THE CEO TITLE FROM CHARLES C STEPHENSON JR WHO REMAINS CHAIRMAN MR STEPHENSON 57 SAID IN A STATEMENT VINTAGE HAS TRIPLED IN BOTH REVENUES AND RESERVES OVER THE PAST THREE YEARS AND WE ARE POSITIONING THE COMPANY FOR THE NEXT 10 YEARS OF GROWTH THE COMPANY ALSO ANNOUNCED THAT S CRAIG GEORGE 41 WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR GEORGE WHO HAD BEEN A SENIOR VICE PRESIDENT TAKES ON THE CHIEF OPERATING OFFICER POSITION VACATED BY MR HILLE MR GEORGE REMAINS A DIRECTOR WILLIAM C BARNES 39 WAS NAMED EXECUTIVE VICE PRESIDENT HE HAD BEEN A SENIOR VICE PRESIDENT AND REMAINS CHIEF FINANCIAL OFFICER TREASURER SECRETARY AND A DIRECTOR WILLIAM L ABERNATHY 42 WHO HAD BEEN VICE PRESIDENT ACQUISITIONS WAS NAMED SENIOR VICE PRESIDENT ACQUISITIONS 9403180057 940318 INTERNATIONAL WISNER IN LINE AS ENVOY TO INDIA SOLARZ DROPS OUT WASHINGTON THE PENTAGON'S TOP POLICY OFFICIAL FRANK WISNER WILL RESIGN SOON AND BE NOMINATED TO BECOME AMBASSADOR TO INDIA CLINTON ADMINISTRATION OFFICIALS SAID THE MOVE IS SIGNIFICANT FOR SEVERAL REASONS MOST NOTABLY THE ADMINISTRATION ALREADY HAD PICKED SOMEONE TO BE ITS ENVOY TO INDIA FORMER NEW YORK REP STEPHEN SOLARZ MR SOLARZ FORMER CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS SUBCOMMITTEE ON ASIA SAID HE AGREED TO WITHDRAW HIS NAME AFTER MEETING WEDNESDAY WITH VICE PRESIDENT AL GORE THE WHITE HOUSE DECIDED NOT TO PURSUE MR SOLARZ'S NOMINATION AFTER RECEIVING A FEDERAL BUREAU OF INVESTIGATION REPORT ON THE EXCONGRESSMEN'S EFFORT TO HELP A HONG KONG BUSINESSMAN EXTEND A VISA TO THE US THE BUSINESSMAN WAS SUSPECTED OF HAVING CONNECTIONS TO ORGANIZED CRIME IN HONG KONG BUT MR SOLARZ APPARENTLY WAS UNAWARE OF THAT MR SOLARZ SAID LAST NIGHT THAT THE FBI REPORT EXONERATED HIM OF WRONGDOING BUT IT WAS CLEAR THAT GIVEN THE ADMINISTRATION'S CURRENT WHITEWATER TROUBLES IT DIDN'T RELISH THE PROSPECT OF A MESSY NOMINATION FIGHT IN THE SENATE 9403180055 940318 MARKETING & MEDIA KING WORLD IN AGREEMENT TO CONTINUE OPRAH SHOW NEW YORK SYNDICATOR KING WORLD PRODUCTIONS INC REACHED AN AGREEMENT WITH OPRAH WINFREY TO CONTINUE DISTRIBUTING HER TOPRATED TALK SHOW THROUGH THE 19992000 TELEVISION SEASON MAKING HER A MAJOR SHAREHOLDER IN RETURN MS WINFREY'S CONTRACT EXPIRES AFTER THE 19941995 SEASON AND THERE WAS SPECULATION SHE WOULD END THE EIGHTYEAROLD SHOW THE NEW CONTRACT INCLUDES AN OPTION THAT LETS MS WINFREY LEAVE AFTER THE 19951996 SEASON THE PROGRAM WHICH IS PRODUCED BY MS WINFREY'S HARPO INC GENERATED ABOUT 185 MILLION IN REVENUE LAST YEAR FOR KING WORLD OR ABOUT 39 OF THE COMPANY'S TOTAL REVENUES OPPENHEIMER & CO ANALYST JESSICA REIF CALLED THE NEW DEAL EXTREMELY POSITIVE KING WORLD WILL CONTINUE TO DISTRIBUTE THE SHOW FOR A PERCENTAGE OF PROFITS FOR THE FIRST TWO YEARS OF THE NEW DEAL IN THE FINAL THREE YEARS THE COMPANY WILL INSTEAD GET A DISTRIBUTION FEE BASED ON A PERCENTAGE OF GROSS REVENUES DERIVED FROM THE SERIES WHICH WILL BE LESS LUCRATIVE THAN THE CURRENT ARRANGEMENT BUT STILL LEAVE THE SHOW KING WORLD'S MOST PROFITABLE UNDER THE CONTRACT MS WINFREY WHO ALREADY CONTROLS ONE MILLION OF KING WORLD'S 38 MILLION SHARES OUTSTANDING WILL RECEIVE OPTIONS TO BUY AN ADDITIONAL 15 MILLION KING WORLD SHARES 9403180054 940318 BUSINESS BRIEF LANDMARK GRAPHICS CORP DEFINITIVE ACCORD SIGNED TO BUY ADVANCE GEOPHYSICAL HOUSTONBASED LANDMARK GRAPHICS CORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE ADVANCE GEOPHYSICAL CORP OF DENVER AND SAID IT EXPECTS TO TAKE A 2 MILLION CHARGE FOR ACQUISITION COSTS IN ITS THIRD QUARTER ENDING MARCH 31 A YEAR EARLIER NET INCOME WAS 19 MILLION OR 18 CENTS A SHARE ON REVENUE OF 236 MILLION LANDMARK WHICH ANNOUNCED THE ACQUISITION IN JANUARY SAID THE INDICATED VALUE OF THE TRANSACTION IS NOW MORE THAN 70 MILLION BECAUSE OF AN INCREASE IN LANDMARK'S COMMONSTOCK PRICE THE COMPANY AGREED TO ACQUIRE ADVANCE GEOPHYSICAL FOR 26 MILLION LANDMARK COMMON SHARES BOTH COMPANIES ARE INVOLVED IN THE USE OF COMPUTER SYSTEMS FOR OIL AND GAS EXPLORATION 9403180053 940318 BUSINESS BRIEF UNITED MERIDIAN CORP HOUSTON FIRM DISCOVERS OIL OFF THE COAST OF WEST AFRICA UNITED MERIDIAN CORP SAID IT DISCOVERED OIL OFF THE COAST OF WEST AFRICA THE HOUSTON COMPANY SAID THE LION NO 1 WELL OFFSHORE THE IVORY COAST TESTED AT A RATE OF 14263 BARRELS OF OIL A DAY FROM THREE INTERVALS AT DEPTHS RANGING BETWEEN 10176 FEET AND 10407 FEET THE OIL AND NATURAL GAS COMPANY SAID IT EXPECTS THE WELL WILL START PRODUCTION LATE THIS YEAR OR EARLY NEXT YEAR UNITED MERIDIAN OPERATES THE WELL AND OWNS A 25 WORKING INTEREST THE IVORY COAST'S NATIONAL OIL COMPANY OWNS A 40 WORKING INTEREST INTERNATIONAL FINANCE CORP A SUBSIDIARY OF WORLD BANK OWNS A 15 INTEREST GLOBAL NATURAL RESOURCES CORP HOUSTON OWNS A 10 INTEREST AND PLUSPETROL SA BUENOS AIRES OWNS 10 9403180052 940318 POLITICS & POLICY GOP WINS SENATE COMMITMENT TO HOLD WHITEWATER HEARINGS DATE IS UNCERTAIN BY KENNETH H BACON AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON REPUBLICANS WON A SENATE COMMITMENT TO HOLD HEARINGS ON THE WHITEWATER AFFAIR THAT IS BEDEVILING PRESIDENT AND MRS CLINTON BUT THE TIMING OF THE HEARINGS MUST STILL BE DETERMINED BY AGREEING TO HEARINGS THE DEMOCRATS HAVE ALLOWED THE WHITEWATER ISSUE TO MOVE TO A NEW POLITICAL PLANE HOWEVER THE RESOLUTION SPECIFICALLY STATES THE TIMING AND THE FORMAT OF THE HEARINGS WON'T INTERFERE WITH THE INVESTIGATION BEING CONDUCTED BY SPECIAL COUNSEL ROBERT FISKE SO HEARINGS MIGHT NOT OCCUR FOR SOME TIME THE DETAILS STILL HAVE TO BE WORKED OUT BY MAJORITY LEADER GEORGE MITCHELL OF MAINE AND MINORITY LEADER ROBERT DOLE OF KANSAS WHO REACHED YESTERDAY'S AGREEMENT DURING A DAY OF NEGOTIATIONS THE TWO SENATORS BOTH CLAIMED VICTORY IN PRESENTING THE AGREEMENT WHICH THE SENATE ADOPTED ON A 980 VOTE AS IT COMPLETED WORK ON A COMMUNITYDEVELOPMENT BANKING BILL DESIGNED TO INCREASE CREDIT FOR POOR COMMUNITIES AND SMALL BUSINESSES MR DOLE SAID THAT THE AGREEMENT COMMITS THE SENATE TO HEARINGS ON A COMPLICATED SET OF FINANCIAL AND POLITICAL ISSUES INVOLVING THE CLINTONS UNTIL NOW THE SENATE'S DEMOCRATIC MAJORITY HAS REFUSED TO COMMIT TO HEARINGS ARGUING THAT ANY SENATE INVESTIGATION COULD IMPEDE MR FISKE'S PROBE THE AGREEMENT SHOWS THAT ROBERT FISKE DOESN'T HAVE A VETO OVER THE SENATE'S RIGHT TO REVIEW THE EFFECTIVENESS OF FEDERAL BANK REGULATION AND LAW ENFORCEMENT MR DOLE SAID AT THE SAME TIME MR MITCHELL EMPHASIZED THAT THE RESOLUTION MAKES IT CLEAR THAT THE SENATE WON'T PROCEED IN A WAY THAT INTERFERES WITH MR FISKE'S INVESTIGATION HE ALSO SAID THAT HEARINGS WON'T OCCUR IMMEDIATELY NEVERTHELESS DEMOCRATS HAD COME TO REALIZE THAT HEARINGS WHERE INEVITABLE THE DISAGREEMENT HAS BEEN OVER THE TIME AND THE MANNER OF THE HEARINGS MR MITCHELL SAID WHILE THE TWO LEADERS COULD STILL FAIL TO REACH AGREEMENT ON THESE DETAILS BOTH PROMISED TO NEGOTIATE IN GOOD FAITH ACCORDING TO THE RESOLUTION THE HEARINGS WILL FOCUS ON MADISON GUARANTY SAVINGS & LOAN A FAILED ARKANSAS THRIFT LINKED TO THE CLINTONS' POLITICAL AND BUSINESS VENTURES WHITEWATER DEVELOPMENT CO A LAND PARTNERSHIP INVOLVING THE CLINTONS THE HEAD OF MADISON AND HIS FORMER WIFE CAPITAL MANAGEMENT SERVICES A LITTLE ROCK ARK SMALLBUSINESS INVESTMENT COMPANY THAT MADE A LOAN THAT MAY HAVE BEEN USED TO CLEAR UP SOME OF MADISON'S PROBLEMS REPUBLICANS ALSO MADE IT CLEAR THAT THE HEARINGS WILL FOCUS ON WHETHER THE WHITE HOUSE HAS TRIED TO STOP GOVERNMENT INVESTIGATIONS OF MADISON WHICH FAILED IN 1989 AND COST THE TAXPAYERS 47 MILLION YESTERDAY TWO TOP WHITE HOUSE OFFICIALS WHITE HOUSE COUNSEL BERNARD NUSSBAUM AND DEPUTY CHIEF OF STAFF HAROLD ICKES APPEARED BEFORE A FEDERAL GRAND JURY LOOKING INTO WHETHER THE WHITE HOUSE TRIED TO INFLUENCE A GOVERNMENT INVESTIGATION OF MADISON IN ADDITION WHITE HOUSE ADVISER GEORGE STEPHANOPOULOS YESTERDAY WAS SUBPOENAED TO TESTIFY BEFORE THE GRAND JURY I WELCOME THE OPPORTUNITY TO GIVE MR FISKE THE FACTS MR STEPHANOPOULOS SAID IN A STATEMENT IN THE HOUSE WHERE THE GOP IS ALSO PRESSING FOR FULL HEARINGS REPUBLICAN LEADERS MET WITH MR FISKE TO TRY TO CLEAR AWAY OBSTACLES THE DISCUSSIONS WERE INCONCLUSIVE BUT THE SENATE AGREEMENT SHOULD ALSO HELP CLEAR THE WAY TOWARD HEARINGS IN THE HOUSE NEXT WEEK THE HOUSE BANKING COMMITTEE WILL HOLD GENERAL OVERSIGHT HEARINGS ON THE RESOLUTION TRUST CORP THE THRIFTCLEANUP AGENCY REP JAMES LEACH R IOWA MAY USE THE HEARINGS TO RELEASE INFORMATION THAT HE SAYS SHOWS THAT OFFICIALS OF THE KANSAS CITY RTC OFFICE ARE BEING GAGGED AND POSSIBLY COERCED BY THE WASHINGTON RTC OFFICE PRESUMABLY TO HALT WORK ON THE MADISON INVESTIGATION HOWEVER MEMOS FROM THE RTC'S KANSAS CITY OFFICE SUGGEST THAT OFFICIALS ARE PURSUING THE MADISON INVESTIGATION ON A NUMBER OF FRONTS INCLUDING THE BUSINESS DEALINGS OF DAN LASATER A FORMER LITTLE ROCK BOND DEALER AND CLINTON CAMPAIGN SUPPORTER AS WELL AS CERTAIN INVESTMENTS CONCERNING JIM GUY TUCKER THE CURRENT GOVERNOR OF ARKANSAS 9403180051 940318 BUSINESS BRIEF ALLEN GROUP INC HIGHER TAX RATE TO REDUCE OPERATING PROFIT THIS YEAR ALLEN GROUP INC EXPECTS SIZABLE GAINS IN SALES AND PRETAX PROFIT THIS YEAR BUT A SHARPLY HIGHER TAX RATE WILL RESULT IN LOWER EARNINGS FROM CONTINUING OPERATIONS SAID ROBERT G PAUL PRESIDENT AND CHIEF EXECUTIVE OFFICER BECAUSE THE BEACHWOOD OHIO PRODUCER OF MOBILE COMMUNICATION EQUIPMENT AND TRUCK PARTS EXHAUSTED ITS TAXLOSS CARRYFORWARDS DURING 1993 ITS COMBINED FEDERAL AND STATE INCOME TAX RATE WILL RISE TO ABOUT 39 FOR 1994 FROM 11 LAST YEAR SAID ROBERT A YOUDELMAN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR PAUL SAID THAT 1994 NET COULD DIP BELOW 1 A SHARE BUT HE DECLINED TO MAKE A SPECIFIC FORECAST IN 1993 ALLEN HAD NET INCOME OF 241 MILLION OR 96 CENTS A SHARE AFTER LOSSES FROM DISCONTINUED OPERATIONS PARTIALLY OFFSET BY A GAIN FROM THE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING FOR INCOME TAXES 9403180050 940318 BUSINESS BRIEF AMVESTORS FINANCIAL CORP FOURTHPERIOD NET EXPECTED TO BE AT LEAST 41 MILLION AMVESTORS FINANCIAL CORP EXPECTS TO POST FOURTHQUARTER NET INCOME BETWEEN 41 MILLION AND 45 MILLION OR 49 CENTS TO 53 CENTS A SHARE RALPH W LASTER JR CHAIRMAN AND CHIEF EXECUTIVE SAID A YEAR EARLIER THE TOPEKA KAN INSURANCE COMPANY WHICH SELLS SINGLEPREMIUM DEFERRED ANNUITIES EARNED 756000 OR 12 CENTS A SHARE ALL PERSHARE FIGURES ARE FULLY DILUTED AND ARE ADJUSTED FOR A 1FOR25 REVERSE STOCK SPLIT LAST JUNE NET INCOME IN 1993 TOTALED 178 MILLION TO 181 MILLION OR 243 TO 247 A SHARE MR LASTER SAID IN 1992 NET WAS 168 MILLION OR 256 A SHARE AMVESTORS' IMPROVED PERFORMANCE IN 1993 IS LARGELY THE RESULT OF AN INCREASE IN THE COMPANY'S NET INTEREST MARGIN TO 18 IN 1993 FROM 16 IN 1992 MR LASTER SAID THE NET INTEREST MARGIN IS THE DIFFERENCE BETWEEN THE INTEREST RATE AMVESTORS PAYS ITS POLICYHOLDERS CURRENTLY ABOUT 5 AND THE YIELD THE COMPANY EARNS ON ITS PORTFOLIO THE EXECUTIVE SAID HE IS COMFORTABLE WITH ANALYSTS' EARNINGS PROJECTIONS OF 125 TO 135 A SHARE FOR 1994 AND 160 TO 165 A SHARE FOR 1995 9403180049 940318 FIRMS SETTLE SEC CHARGES ON AUCTION RECORDKEEPING WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION CHARGED CANTOR FITZGERALD & CO AND CHICAGO CORP WITH VIOLATING RECORDKEEPING REQUIREMENTS IN CONNECTION WITH NONCOMPETITIVE BIDDING AT TREASURY SECURITIES AUCTIONS THE TWO FIRMS SETTLED SEC ADMINISTRATIVE COMPLAINTS WITHOUT ADMITTING OR DENYING ANY WRONGDOING CHICAGO CORP HANDED OVER 250000 IN PROFITS AND INTEREST FROM THE TRANSACTIONS IN QUESTION AND PAID A CIVIL PENALTY OF 250000 CANTOR FITZGERALD PAID 90000 IN PROFITS AND INTEREST AND 100000 IN CIVIL PENALTIES BOTH FIRMS WERE ORDERED TO CEASE AND DESIST FROM FURTHER VIOLATIONS OF SECURITIES LAWS THE TWO SEPARATE CASES REPRESENT THE LATEST SEC ENFORCEMENT ACTIONS TO GROW OUT OF THE 1991 SALOMON BROTHERS INC TREASURY BOND SCANDAL AND ARE THE MOST SIGNIFICANT ACTIONS IN THE AREA OF NONCOMPETITIVE BIDDING AT ISSUE ARE ALLEGED ABUSES OF A PROCEDURE PUT IN PLACE BY TREASURY TO ACCOMMODATE SMALLER LESS SOPHISTICATED INVESTORS CANTOR FITZGERALD & CO IS A BROKERDEALER AFFILIATE OF CANTOR FITZGERALD SECURITIES WHICH HAS A BUSINESS RELATIONSHIP WITH DOW JONES & CO THE PUBLISHER OF THIS NEWSPAPER 9403180048 940318 BUSINESS BRIEF HOOGOVENS NV DUTCH STEELMAKER NARROWS ITS NET LOSSES SHARPLY IN '93 DUTCH STEEL AND ALUMINUM MAKER HOOGOVENS NV SAID ITS NET LOSSES NARROWED SHARPLY TO 234 MILLION GUILDERS 1234 MILLION IN 1993 FROM 5950 MILLION GUILDERS A YEAR EARLIER AND THE COMPANY SAID IT WOULD SWING TO A PROFIT IN 1994 EXCLUDING EXTRAORDINARY ITEMS IJMUIDENBASED HOOGOVENS ALSO ANNOUNCED THAT IT PLANS TO ISSUE A SEVENYEAR CONVERTIBLE SUBORDINATED BOND WORTH 275 MILLION GUILDERS THE BONDS WILL CARRY COUPON INTEREST RATES TO BE SET BETWEEN 45 AND 50 AT A LATER DATE MEANTIME THE COMPANY SAID ITS SALES LAST YEAR WERE LOWER AT 722 BILLION GUILDERS 381 BILLION FROM 772 BILLION GUILDERS IN 1992 HOOGOVENS SAID IT WAS ABLE TO NARROW ITS LOSS LAST YEAR BY REDUCING ITS EXTRAORDINARY LOSSES TO 52 MILLION GUILDERS FROM 563 MILLION GUILDERS THE PREVIOUS YEAR MOREOVER STEEL SALES OUTSIDE OF EUROPE ROSE ESPECIALLY TO THE US AND CHINA HOOGOVENS SAID BUT SELLING PRICES REMAINED WEAK ALL YEAR AT ITS ALUMINUM DIVISION WHERE OPERATING LOSSES DEEPENED SIGNIFICANTLY TO 265 MILLION GUILDERS FROM 162 MILLION GUILDERS IN 1992 9403180047 940318 JAL WINS US PERMISSION TO FLY NEW HAWAII ROUTE SPECIAL TO THE WALL STREET JOURNAL TOKYO HOURS BEFORE THE FIRST FLIGHT WAS SCHEDULED TO LEAVE THE US GOVERNMENT GRANTED ONETIME PERMISSION FOR A JAPAN AIRLINES AIRLINER TO FLY TO HAWAII ON A NEW ROUTE JAPANESE GOVERNMENT AND AIRLINE OFFICIALS SAID THEY WOULD CONTINUE TO PRESS WASHINGTON FOR FULL APPROVAL OF THE NEW ROUTE WHICH APPARENTLY HAS FALLEN VICTIM TO A BROADER AVIATION DISPUTE JAL'S APPLICATION TO MAKE WEEKLY FLIGHTS TO HONOLULU FROM THE NORTHERN CITY OF SENDAI IS PENDING AT THE US TRANSPORTATION DEPARTMENT US OFFICIALS CLEARED THE WAY EARLY IN THE DAY FOR THE FIRST FLIGHT YESTERDAY AFTERNOON ALMOST 300 PEOPLE HAD ALREADY RESERVED TICKETS A JAPANESE TRANSPORT MINISTRY OFFICIAL SAID THE OFFICIAL WHO SPOKE ON CONDITION OF ANONYMITY SAID WASHINGTON PUT THE APPLICATION ON HOLD BECAUSE OF OPPOSITION FROM UNITED AIRLINES AND FEDERAL EXPRESS CORP THE US AND JAPAN ARE NEGOTIATING AN AGREEMENT ON AIR SERVICE AND SEVERAL ISSUES REMAIN UNRESOLVED IN PARTICULAR US CARRIERS SEEK APPROVAL FOR INCREASED FLIGHTS TO OSAKA WHEN A NEW AIRPORT OPENS IN SEPTEMBER 9403180046 940318 BUSINESS BRIEF ORYX ENERGY CO STAFF TO BE REDUCED BY 20 CHARGE ASSET SALES PLANNED ORYX ENERGY CO HURT BY THE PLUNGE IN CRUDEOIL PRICES SAID IT WILL CUT ITS WORK FORCE 20 AND SELL OFF CERTAIN US ASSETS TO REDUCE ANNUAL COSTS BY AT LEAST 61 MILLION OR 5 OF EXPENSES THE DALLAS OIL EXPLORATION AND PRODUCTION COMPANY SAID IT EXPECTS TO RECORD A FIRSTQUARTER CHARGE OF 103 MILLION FOR LOSSES ON THE SALE OF ASSETS EMPLOYEE LAYOFFS AND POSTRETIREMENTBENEFIT ADJUSTMENTS IN THE YEAREARLIER QUARTER ORYX REPORTED A LOSS OF 7 MILLION OR EIGHT CENTS A SHARE THE COMPANY'S ANNOUNCEMENT FOLLOWS ORYX'S MOVE TWO MONTHS AGO TO SUSPEND ITS QUARTERLY DIVIDEND AND SLASH CAPITAL SPENDING THIS YEAR BY 20 ORYX SAID ESTIMATED PRODUCTION IN 1995 WILL BE REDUCED BY 5000 EQUIVALENT BARRELS A DAY OR 2 OF EXPECTED 1994 PRODUCTION THE COMPANY EXPECTS TO PRODUCE 82 MILLION EQUIVALENT BARRELS THIS YEAR 9403180045 940318 UAL MACHINISTS CONFER ON BUYOUT PLAN PROBLEMS CHICAGO LEADERS FROM UAL CORP AND ITS MACHINISTS UNION MET IN WASHINGTON DC YESTERDAY TO TRY TO RESOLVE THE POINTS THAT SNAGGED A PROPOSED 5 BILLION EMPLOYEE BUYOUT OF THE AIRLINE THE COMPANY AND THE MACHINISTS PUT THE NEGOTIATIONS IN THE HANDS OF STEPHEN M WOLF UAL CHAIRMAN AND JOHN PETERPAUL CHIEF NEGOTIATOR FOR THE INTERNATIONAL ASSOCIATION OF MACHINISTS BOTH SIDES HAD NO COMMENT ON THE TALKS ON TUESDAY THE PARTIES INCLUDING THE PILOTS UNION FAILED TO MEET A DEADLINE FOR SIGNING A DEFINITIVE AGREEMENT ON THE CONCESSIONFOREQUITY TRANSACTION THE MACHINISTS BALKED CLAIMING THAT UNITED AIRLINES' MANAGEMENT AND NONCONTRACT EMPLOYEES WEREN'T EQUITABLY SHOULDERING THEIR PORTION OF THE CONCESSIONS THE MACHINISTS WANT UNITED'S CURRENT EMPLOYEES TO TAKE BIGGER PAYCUTS AND TO RELY LESS ON PAYING NEW HIRES LOWER WAGES AND BENEFITS TO HELP MEET THEIR OBLIGATION OF PROVIDING COSTS SAVINGS THE MISSED DEADLINE FREES UNITED TO PURSUE PLANS TO CONTRACT OUT WORK AND FLIGHT OPERATIONS IF IT SO CHOOSES THE UNIONS NEGOTIATED THE INITIAL BUYOUT AGREEMENT TO PREVENT UAL MANAGEMENT FROM PROCEEDING WITH SUCH STEPS 9403180044 940318 BUSINESS BRIEF FISHER SCIENTIFIC INTERNATIONAL INC UNIT TO PAY US 17 MILLION IN FALSECERTIFICATION CASE FISHER SCIENTIFIC CO AGREED TO PAY THE GOVERNMENT 17 MILLION FOR ITS ROLE IN FALSELY CERTIFYING THAT SCIENTIFIC LABORATORY EQUIPMENT SHIPPED TO EGYPT HAD BEEN MADE IN THE US THE COMPANY A PITTSBURGH UNIT OF FISHER SCIENTIFIC INTERNATIONAL INC HAMPTON NH PLEADED GUILTY TO A ONECOUNT MISDEMEANOR CHARGE ACCORDING TO ASSISTANT US ATTORNEY DONNA GALLUCIO IN NEWARK NJ FISHER SCIENTIFIC HAD BEEN SELECTED TO SUPPLY CERTAIN ITEMS UNDER A GRANT AID PROGRAM TO THE EGYPTIAN GOVERNMENT VARIOUS FISHER EMPLOYEES SUPPLIED CERTIFICATIONS THAT FALSELY STATED THAT THE PRODUCTS WERE MADE IN THE US WHEN IN FACT SEVERAL ITEMS WERE NOT USMADE THE US ATTORNEY'S OFFICE SAID FISHER SCIENTIFIC SAID IT WILL PAY 12 MILLION IN RESTITUTION TO THE US AS WELL AS 500000 FOR THE COSTS OF PROSECUTION THE COMPANY ALSO FACES A MAXIMUM FINE OF 200000 WHEN IT IS SENTENCED ON MAY 26 THE US ATTORNEY'S OFFICE SAID 9403180043 940318 TECHNOLOGY BRIEF IN FOCUS SYSTEMS INC VENTURE TO MAKE DISPLAYS IS DELAYED CAUSING PROBLEMS A HIGHPROFILE JOINT VENTURE TO MAKE A NEW BREED OF COMPUTER DISPLAYS IS RUNNING INTO DELAYS CAUSING PROBLEMS FOR IN FOCUS SYSTEMS INC TUALATIN ORE THE COMPANY A 5050 PARTNER WITH MOTOROLA INC IN THE DISPLAY VENTURE CALLED MOTIF DISCLOSED THAT THE VENTURE WILL NOT BEGIN VOLUME PRODUCTION OF THE NEW DISPLAYS UNTIL THE FIRST QUARTER OF 1995 PRODUCTION HAD BEEN EXPECTED IN THE THIRD QUARTER THIS YEAR SAID JOHN HARKER IN FOCUS'S CHIEF EXECUTIVE OFFICER ALSO MORE MONEY WILL BE NEEDED TO DEVELOP A NEW LOWEND DISPLAY DESIGNED FOR HANDHELD GAME DEVICES AND OTHER APPLICATIONS IN FOCUS SAID AS A RESULT IN FOCUS WILL HAVE TO PUT UP 15 MILLION TO 35 MILLION TO COVER ITS SHARE OF MOTIF'S OPERATING EXPENSES IN THE THIRD AND FOURTH QUARTERS OF 1994 REDUCING IN FOCUS'S POTENTIAL PROFITS FOR THE YEAR BY AS MUCH AS 35 MILLION OR ABOUT 30 CENTS A SHARE MR HARKER SAID ANALYSTS HAD EXPECTED THE COMPANY TO EARN BETWEEN 8 MILLION AND 9 MILLION FOR THE YEAR OR 70 CENTS TO 80 CENTS A SHARE ON SALES OF AS MUCH AS 95 MILLION HE SAID 9403180042 940318 BUSINESS BRIEF HERO GROUP LTD RESTRUCTURING IS COMPLETED ON ALL DEBT OUTSTANDING HERO GROUP LTD NEW YORK SAID IT COMPLETED THE RESTRUCTURING OF ALL OF ITS DEBT OUTSTANDING AFTER HAVING REACHED A DEFINITIVE AGREEMENT TO RESTRUCTURE A 32 MILLION LOAN WITH HONG KONGBASED DELTA ASIA FINANCIAL GROUP HERO WHICH MAKES WOMEN'S APPAREL SOLD UNDER THE LABELS NITELINE AND BLACK TIE BY OLEG CASSINI HAD RESTRUCTURED DEBT WITH DOMESTIC LENDERS IN JANUARY HERO SAID ITS LOAN WITH DELTA WILL BE SECURED BY A PLEDGE OF 13 MILLION NEWLY ISSUED SHARES OF HERO COMMON STOCK AFTER THE LOAN IS REPAID IN MAY 1995 THE COLLATERAL WILL BE RETURNED TO HERO HAVING RESOLVED ITS DEBT PROBLEMS HERO CAN MORE FULLY CONCENTRATE ITS ATTENTION ON THE STRATEGIC REDIRECTION OF ITS OPERATIONS SAID WILLIAM CARONE HERO CHAIRMAN IN THE FIRST SIX MONTHS OF FISCAL 1994 WHICH ENDS MAY 31 HERO HAD A NET LOSS OF 228 MILLION ON SALES OF 604 MILLION THE LOSS INCLUDED A 17 MILLION RESTRUCTURING CHARGE 9403180041 940318 BUSINESS BRIEF MARION MERRELL DOW INC STAKE IN KODAMA OF JAPAN IS INCREASED TO OVER 90 MARION MERRELL DOW INC SAID IT RAISED ITS STAKE IN PHARMACEUTICAL COMPANY KODAMA LTD OF JAPAN TO OVER 90 FROM 51 MARION MERRELL WHICH ACQUIRED ITS INITIAL 20 STAKE IN THE COMPANY IN FEBRUARY 1993 SAID THE LATEST BOOST IS AN IMPORTANT STRATEGIC OPPORTUNITY FOR THE COMPANY TO EXPAND ITS PRESENCE IN JAPAN THE WORLD'S SECOND LARGEST PHARMACEUTICAL MARKET THE COMPANY SAID IT WILL BENEFIT FROM USING KODAMA'S SALES FORCE TO COPROMOTE EXISTING JAPANESE PRODUCTS AND SUPPORT THE LAUNCH OF NEW PRODUCTS POTENTIAL PRODUCTS FOR THE JAPANESE MARKET INCLUDE MARION MERRILL'S NICORETTE AND NICODERM SMOKING CESSATION PRODUCTS KODAMA PRODUCTS INCLUDE POLLAKISU OXYBUTYNIN CHLORIDE A TREATMENT FOR INCONTINENCE LICENSED FROM MARION MERRELL AND MORE THAN 20 OTHER PRESCRIPTION DRUGS 9403180040 940318 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY WHITEWATER ROILS THE WHITE HOUSE HIERARCHY AS RUMORS SWIRL WHILE HILLARY RODHAM CLINTON HAS NO PLANS FOR A FERRAROLIKE PRESS CONFERENCE SENIOR ADVISERS URGE THE PRESIDENT TO PUT HIS PERSONAL LAWYER DAVID KENDALL OUT FRONT TO CALM THE WHITEWATER WATERS THE SEARCH BEGINS FOR A PERMANENT WHITE HOUSE COUNSEL POLITICAL AIDES PUSH FOR SAVVY FORMER TIP O'NEILL AIDE KIRK O'DONNELL BUT OTHERS TOUT US JUDGE PATRICIA WALD MEANWHILE ASSOCIATE COUNSEL KENNEDY COMES UNDER INCREASING FIRE TALK OF REPLACING CHIEF OF STAFF MCLARTY DIMINISHES SINCE HE IS ONE OF THE FEW OLD ARKANSAS HANDS STILL STANDING BUT IF A CHANGE IS ULTIMATELY NEEDED WASHINGTON INSIDERS TOP THE LIST OF POSSIBLE REPLACEMENTS GERGEN CLASHES WITH NEW DEPUTY CHIEF OF STAFF ICKES OVER IDEOLOGY AND ICKES'S SUSPICIONS ABOUT GERGEN'S LOYALTY TO THE PRESIDENT BUT GORE MCLARTY AND LIAISON CHIEF ALEXIS HERMAN RALLY TO HIS DEFENSE ON THE RISE IS JOHN PODESTA WHO HAS BECOME ICKES'S TOP AIDE FOR DAMAGE CONTROL SUPPORT GROWS FOR A GAMBLING TAX TO PAY FOR WELFARE OVERHAUL AFTER WEEKS OF SEARCHING FOR SPENDING CUTS TO PAY FOR CLINTON'S PROPOSAL THE ADMINISTRATION RETURNS TO THE OPTION OF RAISING AN ESTIMATED 4 BILLION OVER FIVE YEARS MOSTLY FROM A 4 EXCISE TAX ON NET GAMBLING REVENUE EXCEPT STATE LOTTERIES WITHHOLDING TAXES ON WINNINGS WOULD ALSO BE INCREASED ADDING TO THE URGENCY OF THE ISSUE IS THAT THE LATEST DRAFT OF CLINTON'S PLAN HAS BEEN DRAWING YAWNS ON CAPITOL HILL AT THE MOMENT ONLY 4 BILLION IS EARMARKED FOR THE PROGRAM BY THE TIME IT IS TO BE FULLY EFFECTIVE IN 1999 THE GAMBLING TAX WOULD AT LEAST GO HALF THE DISTANCE TOWARD FUNDING THE 2 BILLION ANNUAL COST OF CHILD CARE FOR THE WORKING POOR A CRUCIAL FEATURE IN KEEPING WELFARE ROLLS FROM GROWING THE ADMINISTRATION REELS FROM CHRISTOPHER'S DISASTROUS CHINA TRIP WHITE HOUSE OFFICIALS NOW SAY THEY SHOULD HAVE PULLED THE PLUG ON THE TRIP WHEN CHINA BEGAN ARRESTING DISSIDENTS OTHER ADMINISTRATION OFFICIALS COMPLAIN THE SECRETARY OF STATE'S AIDES WERE SO EAGER TO PORTRAY HIM AS A TOUGH TALKER THEY IGNORED THE WARNING SIGNS THAT THE TRIP WOULD EXACERBATE CLINTON'S DILEMMA OVER WHETHER TO RENEW CHINA'S TRADE STATUS COMMERCE AND TREASURY OFFICIALS PLAN TO PUSH FOR BROADER STEWARDSHIP OF CHINA POLICY SOME WANT A TOPLEVEL WHITE HOUSE MEETING TO DEAL WITH THE TRIP'S FALLOUT COMMERCE COMPLAINS IT DIDN'T KNOW THE STATE DEPARTMENT'S HUMANRIGHTS CHIEF WOULD BE MEETING WITH A HIGHPROFILE DISSIDENT WHILE A SENIOR COMMERCE OFFICIAL WAS IN BEIJING PROMOTING TRADE A CHINESE VETO OF UN SANCTIONS ON NORTH KOREA OVER NUCLEAR INSPECTIONS WOULD MAKE IT ALL BUT IMPOSSIBLE FOR CLINTON TO REWARD CHINA ON THE TRADE ISSUE FED POLICY MAKERS ARE TO FINALLY DECIDE AT TUESDAY'S MEETING HOW MUCH AND HOW PROMPTLY TO DISCLOSE INFORMATION ABOUT THEIR MONETARYPOLICY MEETINGS THE LIKELY OUTCOME MORE DISCLOSURE THAN IS NOW THE CASE BUT LESS THAN CONGRESSIONAL CRITICS ARE DEMANDING POWELL BLASTS ANOTHER RETIRED ARMY GENERAL JOHN CUSHMAN FOR CRITICIZING POWELL'S HANDLING OF CLINTON'S FIRST YEAR IN A LETTER TO A NAVY MAGAZINE THE FORMER JOINT CHIEFS CHAIRMAN ACCUSES CUSHMAN AMONG OTHER THINGS OF INTELLECTUAL DISHONESTY OF REACHING THE HEIGHT OF ARROGANCE AND OF WEAVING A WEB OF INNUENDO AND MISINFORMATION WHITE KNIGHT THE COMMODITY FUTURES TRADING COMMISSION FACES ANOTHER BRUISING AUTHORIZATION BATTLE THIS YEAR MAKING IT RIPE FOR ANOTHER MERGER EFFORT BY THE SEC BUT SEC CHAIRMAN LEVITT IS STANDING BY HIS PLEDGE THAT HE WON'T MOUNT A HOSTILE TAKEOVER ASKED AT A CONGRESSIONAL HEARING ABOUT THE CFTC LEVITT DEADPANS WHAT'S THAT RADICAL CHANGES IN US STRATEGY MAY RESULT FROM THE PENTAGON'S RECONSIDERATION OF NUCLEAR ARMS IN THE POSTCOLD WAR WORLD THE PENTAGON WANTS TO EDGE AWAY FROM THE CONDITIONAL NO FIRST USE PLEDGE AND SAY THAT NUCLEAR WEAPONS MAY BE EMPLOYED AS A LASTDITCH DEFENSE AGAINST BIOLOGICAL OR CHEMICAL WEAPONS ALSO BEING DISCUSSED BUT UNLIKELY IS REMOVING THE NUKES FROM NEARLY ALL REMAINING US ICBMS ALTMAN VOWS HE WON'T FOLLOW HUBBELL AND QUIT UNDER FIRE THE DEPUTY TREASURY SECRETARY TELLS AIDES HE HASN'T DONE ANYTHING WRONG AND WON'T RESIGN SO FAR THERE ISN'T ANY SIGN THAT HE IS BEING PRESSURED TO DO SO BUT INSIDERS ALREADY SPECULATE ON POSSIBLE SUCCESSORS INCLUDING WHITE HOUSE AIDE BOWMAN CUTTER AND EXIM BANK CHIEF KEN BRODY DISGRUNTLED PRESENT AND FORMER RTC EMPLOYEES RESENTFUL AT WHAT THEY COMPLAIN WAS ALTMAN'S ARROGANT AND DISDAINFUL ATTITUDE WHEN HE TOOK OVER AS ACTING RTC CHIEF SAVOR HIS DIFFICULTIES SOME BEGIN VOICING CRITICISM THEY HAD PREVIOUSLY KEPT TO THEMSELVES OTHERS CIRCULATE OLD MEMOS TO TRY TO EMBARRASS HIM BENTSEN LEANING INCREASINGLY ON THE FEW REMAINING LONGTIME LOYALISTS ON HIS STAFF SUMMONS SENIOR AIDES TO TRY TO BOOST SPIRITS MINOR MEMOS THE WORLD BANK PLANS A SESSION ON THE IMPLICATIONS FOR LEADERSHIP IN TIMES OF TURBULENCE ITS NAME PERMANENT WHITEWATER KANSAS REP ROBERTS SAYS THE POLITICALLY CORRECT TERM FOR FARMERS AND RANCHERS IS AGROAMERICANS 9403180039 940318 FOREIGN EXCHANGE DOLLAR SNAPS BACK FROM EARLY SELLOFF AS BUNDESBANK OPTS NOT TO TOUCH RATES BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SNAPPED BACK FROM AN EARLY SELLOFF AGAINST THE MARK THAT WAS SPARKED BY THE BUNDESBANK'S DECISION TO LEAVE KEY INTEREST RATES UNTOUCHED AFTER THE DOLLAR DROPPED TO A NEW LOW FOR THE WEEK IT WHIPPED BACK TO RECOVER ITS LOSSES AGAINST THE MARK LEAVING MANY INVESTORS SOMEWHAT BLOODIED BY THE ABRUPT MOVES LATE IN NEW YORK THE DOLLAR WAS MIXED AGAINST THE OTHER MAJOR CURRENCIES IT WAS QUOTED AT 16890 MARKS UP FROM 16885 MARKS LATE WEDNESDAY IN NEW YORK AND AT 10585 YEN DOWN FROM 10607 YEN A DAY EARLIER STERLING WAS TRADING AT 14934 OFF FROM 14944 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10585 YEN AND AT 16945 MARKS EARLY ON TRADERS WERE EXPECTING AT THE VERY LEAST A SYMBOLIC CUT IN THE GERMAN CENTRAL BANK'S CEILING LOMBARD RATE WHICH WOULD HAVE PROVIDED SOME EXCUSE TO PUSH THE DOLLAR HIGHER INDEED IN ASIAN AND EUROPEAN TRADING THE DOLLAR CLIMBED STEADILY TO ITS INTRADAY HIGH OF 16943 MARKS ON EXPECTATIONS THAT ANY GERMAN RATE CUT WOULD PROPEL THE DOLLAR ABOVE KEY RESISTANCE AT 17000 MARKS TRADERS SAID BUT THE SURPRISE DECISION BY THE BUNDESBANK TO LEAVE KEY RATES UNCHANGED FORCED TRADERS TO SWITCH POSITIONS SENDING THE DOLLAR SPIRALING TO ITS INTRADAY LOW OF 16760 MARKS THE MARKET WENT LONG DOLLARS INTO THE ANNOUNCEMENT AND THEN THERE WAS A BIG SQUEEZE AND THE MARKET TURNED BEARISH SAID PAUL MCERLAIN VICE PRESIDENT AT SOCIETE GENERALE IN NEW YORK BUT WHEN THE DOLLAR FAILED TO PUNCH BELOW KEY SUPPORT AT ABOUT 16750 MARKS THE SHORTS WERE SQUEEZED OUT BY A FEW BIG PLAYERS AND THE DOLLAR WAS PUSHED HIGHER MR MCERLAIN ADDED THE BUNDESBANK CAUGHT THE MARKET WITH ITS PANTS DOWN A LITTLE BIT MR MCERLAIN SAID NOTING THAT MANY INTRADAY PLAYERS WERE HURT BY THE DAY'S WHIPSAW MOVEMENT INDEED PRIOR TO THE ANNOUNCEMENT THERE WERE AMPLE REASONS TO SUSPECT THE BUNDESBANK WOULD BE CUTTING RATES I KIND OF THOUGHT THEY MIGHT SAID BILL BERTHA CHIEF DEALER FOR MELLON BANK IN PITTSBURGH FOR ONE THE DOLLAR REMAINS IN A STRONG TECHNICAL DOWNDRAFT UNABLE TO CLIMB ABOVE 17000 MARKS DESPITE A SPATE OF ECONOMIC DATA SHOWING THE US ECONOMIC RECOVERY IS IN FULL SWING IN ADDITION A CUT IN THE LOMBARD RATE WOULD HAVE BEEN A SYMBOLIC GESTURE TO GERMANY'S ECONOMIC PARTNERS WHO HAVE BEEN PRESSING FOR A FASTER BUNDESBANK EASING TO HELP STIMULATE THE WORLD ECONOMY AND TRADERS ALSO NOTED THAT YESTERDAY REPRESENTED THE LAST OBVIOUS OPPORTUNITY FOR A BUNDESBANK RATE CUT BEFORE THE CENTRAL BANK'S FOURWEEK EASTER BREAK WHEN THE POLICYMAKING COUNCIL RESUMES ITS REGULAR BIWEEKLY MEETINGS APRIL 14 THE DOLLAR MAY WELL HAVE RECOVERED FROM ITS RECENT SLIDE TRADERS SAID AND THE BUNDESBANK IS LIKELY TO BE RELUCTANT TO SANCTION A RATE CUT IF THE MARK IS GOING THROUGH ANOTHER PERIOD OF WEAKNESS THEY ADDED ONE FINAL FACTOR TRADERS SAID WAS THAT WHILE MANY IN THE MARKET HAD EXPECTED A TOKEN EASING YESTERDAY SENTIMENT WAS ALMOST UNIVERSALLY POSITIONED AGAINST ANY DRAMATIC ACTION BY THE BUNDESBANK PERVERSELY THAT COULD HAVE CREATED AN ENVIRONMENT TO DO SOMETHING DRAMATIC FOR A CENTRAL BANK THAT APPARENTLY LIKES TO MOVE AGAINST MARKET EXPECTATIONS WITH THE BUNDESBANK YOU ALWAYS GET INTO A SITUATION WHERE ITS DOUBLE AND TRIPLE REVERSE PSYCHOLOGY SAID CYRUS WHITNEY CHIEF TRADER AT COMMERZBANK IN NEW YORK BUT WITH THE DOLLAR'S TECHNICAL RECOVERY FROM ITS LOWS IT FOUND FURTHER SUPPORT ON COMMENTS BY HANS TIETMEYER BUNDESBANK PRESIDENT THAT DESPITE YESTERDAY'S DECISION THE BANK STILL SEES ROOM TO EASE MONEYMARKET RATES MEANWHILE THE BANK OF CANADA WAS REPORTED SELLING US DOLLARS AGGRESSIVELY LATE YESTERDAY AFTER TECHNICALLY DRIVEN TRADING TOOK THE CANADIAN DOLLAR TO A SEVENYEAR LOW THE US DOLLAR WAS TRADING AT 13680 CANADIAN DOLLARS IN LATE NEW YORK TRADING UP FROM 13640 CANADIAN DOLLARS LATE WEDNESDAY BUT THE US DOLLAR CONTINUED HIGHER LATER IN AUSTRALASIAN DEALINGS TO BREAK A KEY 13700 CANADIAN DOLLAR RESISTANCE LEVEL THE CANADIAN ECONOMY ITSELF IS REALLY STUMBLING TO A HALT SAID SOCIETE GENERALE'S MR MCERLAIN 9403180038 940318 BULL'S NEW CHAIRMAN SEEKS ALLIANCES TO RESTORE PROFIT FOR COMPUTER MAKER BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL HANOVER GERMANY THE DAYS OF CIE DES MACHINES BULL AS FRANCE'S NATIONAL COMPUTER CHAMPION ARE NUMBERED BULL'S NEW CHAIRMAN SAYS HE AIMS TO RETURN THE STRUGGLING FRENCH STATEOWNED COMPUTER MAKER TO PROFIT BY THE END OF 1995 WITH AN AGGRESSIVE RESTRUCTURING AND PRIVATIZATION PLAN INSPIRED BY THE RECENT TURNAROUND AT BULL'S US SUBSIDIARY ZENITH DATA SYSTEMS TO ACHIEVE THAT TARGET JEANMARIE DESCARPENTRIES WHO JOINED BULL IN OCTOBER SAYS EACH OF BULL'S SEVEN BUSINESS DIVISIONS MUST STRIKE ALLIANCES WITH ONE OR MORE INDUSTRIAL PARTNERS IN LINE WITH THE FRENCH GOVERNMENT'S RECENT DECISION TO PRIVATIZE THE COMPANY THOUGH HE DIDN'T DISCLOSE ANY NAMES FEW OF PROSPECTIVE PARTNERS ARE LIKELY TO BE FRENCH NOBODY CAN REMAIN NATIONAL IN MY OPINION MR DESCARPENTRIES SAID IN AN INTERVIEW DURING THE CEBIT COMPUTER FAIR HERE EACH OF OUR MANAGERS IS LOOKING FOR INDUSTRIAL PARTNERS THERE ARE SIX OR SEVEN PARTNERSHIP DISCUSSIONS ON THE WAY OUR PLAN IS TO HAVE A PORTFOLIO OF THREE OR FOUR INDUSTRIAL PARTNERS HE SAID NONE OF THESE POTENTIAL PARTNERS WOULD ACQUIRE A MAJORITY STAKE IN BULL BUT IDEALLY THEY WOULD HAVE STAKES OF 10 TO 15 MR DESCARPENTRIES ADDED AMONG POSSIBLE PARTNERS HE CITED THE GERMAN TELEPHONESERVICES PROVIDER DEUTSCHE TELEKOM FUJITSU LTD OF JAPAN AND ITS BRITISH ICL COMPUTERS LTD UNIT AS WELL AS JAPAN'S NEC CORP WHICH ALREADY HAS A 44 STAKE IN THE FRENCH COMPANY TO BE SURE MR DESCARPENTRIES FACES SEVERAL HURDLES HE WILL HAVE TO CONVINCE PROSPECTIVE PARTNERS TO TAKE MINORITY STAKES WITHOUT EXERCISING MANAGEMENT CONTROL OVER BULL HE NEEDS TO STEM THE COMPANY LOSSES AND FAST EARLIER THIS WEEK BULL ANNOUNCED ITS 1993 LOSS WIDENED TO 507 BILLION FRENCH FRANCS 8832 MILLION FROM 472 BILLION FRANCS 8222 MILLION THE YEAR BEFORE AND LAST BUT NOT LEAST MR DESCARPENTRIES MUST WRESTLE THE EUROPEAN COMMISSION'S APPROVAL FOR AN 11 BILLION FRANC CAPITAL INJECTION FROM THE FRENCH GOVERNMENT A MOVE THAT HAS ALREADY ELICITED HOWLS OF PROTEST FROM BULL'S COMPETITORS STILL COMPUTER INDUSTRY ANALYSTS SAY THAT IF ONE MAN CAN PULL THIS OFF MR DESCARPENTRIES IS PROBABLY THE ONE HIS STRENGTH IS THAT HE IS AN OUTSIDER IN THE COMPUTER BUSINESS MR DESCARPENTRIES HAS SPENT HIS CAREER IN THE GLASSMAKING PACKAGING AND BEER INDUSTRIES AND HE REMAINS A DIRECTOR ON THE BOARD OF INTERBREW SA THE BELGIAN PRIVATELY HELD BREWER OF STELLA BEERS THAT SHOULD PROVIDE BULL WITH SOME FRESH THINKING ON HOW TO SURVIVE IN A BUSINESS SUBJECT TO EVER MORE RAPID TECHNOLOGICAL CHANGE AND RELENTLESS PRICE PRESSURE NOT ONLY HAS MR DESCARPENTRIES PROVED TO BE A SKILLED TURNAROUND ARTIST IN PREVIOUS JOBS BUT HIS MANAGEMENT EXPERIENCE AT ANGLOFRENCH PACKAGING CONCERN CARNAUDMETALBOX ASAHI GLASS CO'S BELGIAN GLAVERBEL SA SUBSIDIARY AS WELL AS AT INTERBREW MEANS HIS PERSPECTIVE AT BULL IS THAT OF A USER RATHER THAN A PROVIDER OF COMPUTER GOODS AND SERVICES OTHER BIG COMPUTER MAKERS ALSO HAVE HIRED EXECUTIVES FROM OUTSIDE THE INDUSTRY TO GAIN A FRESH PERSPECTIVE SUCH AS LOUIS V GERSTNER JR THE FORMER RJR NABISCO CHAIRMAN HIRED LAST YEAR TO HEAD INTERNATIONAL BUSINESS MACHINES CORP OR GERHARD SCHULMEYER THE HEAD OF ABB ASEA BROWN BOVERI'S US OPERATIONS WHO IS TO JOIN SIEMENS NIXDORF SIEMENS AG'S AILING COMPUTER DIVISION LATER THIS YEAR POSSIBLY TO SUCCEED THE DIVISION'S CURRENT CHAIRMAN HE LOOKS LIKE THE RIGHT MAN SAID EDWARD O'HARA MANAGING DIRECTOR NORTH EUROPE AT INTERNATIONAL DATA CORP THE USBASED COMPUTERMARKET RESEARCH FIRM TO BOLSTER CREDIBILITY WITH ITS CUSTOMERS MR O'HARA SAID BULL NEEDS TO RECREATE THEMSELVES AND BE SUCCESSFUL IN THEIR OWN BUSINESS RATHER THAN JUST MANUFACTURE COMPUTERS AND DESIGN SOFTWARE ANALYSTS ARGUE BULL AND ITS COMPETITORS NEED TO BECOME PROVIDERS OF OPERATIONAL SOLUTIONS THAT HELP BUSINESSES OPERATE AT LOWER COST AND MORE EFFICIENTLY THAT'S EXACTLY WHAT MR DESCARPENTRIES SAYS HE INTENDS TO DO THE STRATEGY MUST BE DIRECTED AT THE CUSTOMER MR DESCARPENTRIES SAID DURING THE INTERVIEW YOU LOOK AT YOUR SKILLS YOU LISTEN VERY CAREFULLY TO YOUR CUSTOMERS AND YOU TRY TO MATCH BOTH UP WITH PARTNERS ADDS GEORGE MCNEIL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BULL EUROPE WE WANT TO PROVIDE A BROAD RANGE OF PRODUCTS AND SERVICES TO OUR CUSTOMERS WE DON'T WANT TO BE PUT IN A SINGLE BOX THAT'S A STRATEGY THAT BULL'S US SUBSIDIARY ZENITH DATA SYSTEMS HAS PUT TO GOOD USE IN THE PAST FEW MONTHS BULL EXECUTIVES SAID ZENITH LAST JUNE ACQUIRED A 20 STAKE IN PACKARD BELL ELECTRONICS INC AND TOGETHER BOTH COMPANIES HAVE CUT COSTS WIDENED THEIR PRODUCT RANGE AND BOOSTED DISTRIBUTION CHANNELS FROM NUMBER 16 IN THE US PERSONAL COMPUTER MARKET ZENITH JUMPED TO THE NUMBER 10 POSITION IN SALES VOLUME SAID JACQUES NOELS ZENITH'S PRESIDENT AND CEO AS A RESULT ZENITH HAS MOVED FROM A SIGNIFICANT LOSS TO NEAR BREAKEVEN MR NOELS ADDED THOUGH HE DIDN'T PROVIDE ANY SPECIFIC FIGURES AND WE DID IT IN LESS THAN A YEAR HE SAID WHICH HE AND MR DESCARPENTRIES ARGUED DEMONSTRATES IT'S POSSIBLE TO ENGINEER A TURNAROUND AT BULL AS WELL MR DESCARPENTRIES STRESSED THAT IT'S CURRENTLY OUT OF THE QUESTION FOR BULL TO DIVEST ITS ZENITH UNIT AS HAD BEEN CONSIDERED BY THE PREVIOUS MANAGEMENT AND THE FRENCH GOVERNMENT ONLY BUSINESS LINES THAT DO NOT SHOW CLEAR PROGRESS BY THE END OF 1995 WILL BE SOLD HE SAID OF BULL'S SEVEN DIVISIONS HE SAID ONLY TWO CURRENTLY ARE PROFITABLE TURNING UP A COMBINED PROFIT OF ABOUT 35 BILLION FRANCS LAST YEAR THE FIVE OTHER DIVISIONS HE SAID POSTED A COMBINED LOSS OF ABOUT SEVEN BILLION FRANCS IN ADDITION TO THE 165 BILLION FRANCS BULL SET ASIDE LAST YEAR TO COVER RESTRUCTURING COSTS HE DIDN'T SPECIFY WHICH DIVISIONS ARE MAKING OR LOSING MONEY RATHER THAN LAY OFF ANY OF BULL'S WORKERS THE COMPANY'S NEW CHAIRMAN SAID BULL CAN SLASH AS MUCH AS THREE BILLION FRANCS IN OPERATIONAL COSTS IN OTHER AREAS SUCH AS PURCHASING SUBCONTRACTING AND MOVING FACILITIES TO CHEAPER LOCATIONS THE PREVIOUS MANAGEMENT MR DESCARPENTRIES SAID HAD BURDENED BULL WITH A BAD ORGANIZATION BAD REPORTING MAYBE WHEN YOU'RE BACKED BY A GOVERNMENT YOU HAVE NOT ENOUGH PRESSURE TO PERFORM INDEED IF BULL'S CURRENT RECAPITALIZATION PLAN IS APPROVED BY THE EUROPEAN COMMISSION THE FRENCH GOVERNMENT WILL HAVE PUMPED A TOTAL OF 20 BILLION FRANCS IN BULL IN JUST FIVE YEARS UNDER THE EUROPEAN UNION'S FAIRCOMPETITION RULES THE COMMISSION MUST EVALUATE ALL STATE AID TO INDUSTRY AND NORMALLY ONLY GIVES THE GREEN LIGHT IF THE SUBSIDIES ARE ACCOMPANIED BY A THOROUGH RESTRUCTURING PLAN MR DESCARPENTRIES MET WITH EU COMPETITION COMMISSIONER KAREL VAN MIERT EARLIER THIS MONTH TO DISCUSS BULL'S PLANS AND HE SAID HE'S CONFIDENT MR VAN MIERT WILL WAVE THROUGH THE 11 BILLION FRANC INJECTION TWOTHIRDS OF WHICH HAS ALREADY BEEN PAID OUT I DON'T ANTICIPATE ANY PROBLEMS WITH BRUSSELS MR DESCARPENTRIES SAID ADDING THAT MR VAN MIERT HAD ASSURED HIM THE CASH INJECTION WOULD BE APPROVED BY SEPTEMBER AND POSSIBLY AS EARLY AS JULY STILL THE PLAN COULD FACE OPPOSITION TO OTHER MEMBERS OF THE EUROPEAN COMMISSION WITH WHICH BULL IN THE PAST HAS HAD NUMEROUS FIGHTS OVER STATE AID BULL IN THE PAST CERTAINLY HASN'T BEEN A MODEL OF FINANCIAL TRANSPARENCY AND MR DESCARPENTRIES INDICATED THE COMPANY DIDN'T EVEN HAVE A CLEAR PICTURE OF ITS OWN FINANCIAL SITUATION NOW WITH OUR NEW ORGANIZATION WE KNOW WHERE ARE THE LOSSES MR DESCARPENTRIES SAID BULL WILL POST A PROFIT OR AT LEAST BREAK EVEN IN 1995 THE PRIVATIZATION WILL BE FINISHED IN TWO YEARS MR DESCARPENTRIES VOWED THIS ISN'T THE MOST DIFFICULT TURNAROUND I HAVE DONE IT'S CONSIDERED MORE OR LESS LIKE AN IMPOSSIBLE MISSION BUT IT'S VERY POSSIBLE AND NOT SO DIFFICULT 9403180037 940318 BUSINESS BRIEF FIRST ALABAMA BANCSHARES LETTERS OF INTENT ARE SIGNED TO BUY TWO REGIONAL BANKS FIRST ALABAMA BANCSHARES SAID IT SIGNED LETTERS OF INTENT TO ACQUIRE FIRST COMMUNITY BANCSHARES INC OF ROME GA AND BNR BANCSHARES INC OF NEW ROADS LA IN TRANSACTIONS VALUED AT ABOUT 224 MILLION AND 26 MILLION RESPECTIVELY UNDER TERMS OF ITS AGREEMENT WITH FIRST COMMUNITY FIRST ALABAMA WILL EXCHANGE 095 SHARE OF ITS COMMON STOCK FOR EACH OF THE 699909 SHARES OF CLOSELY HELD FIRST COMMUNITY FIRST COMMUNITY DIRECTORS AND OFFICERS HAVE OPTIONS TO PURCHASE AN ADDITIONAL 79732 SHARES WHICH WILL BE SUBJECT TO THE SAME TERMS IN THE AGREEMENT WITH BNR FIRST ALABAMA WILL PAY 26 MILLION WORTH OF ITS STOCK TO THE SHAREHOLDERS OF PRIVATELY HELD BNR THE NUMBER OF FIRST ALABAMA SHARES INVOLVED IN THE TRANSACTION WILL BE SUBJECT TO THE STOCK'S MARKET PRICE OVER A SPECIFIED PERIOD DEFINITIVE AGREEMENTS ARE EXPECTED TO BE COMPLETED BY THE END OF THE MONTH THE COMPANY SAID 9403180036 940318 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 3/8 HIGH 3 1/8 LOW 3 1/4 NEAR CLOSING BID 3 5/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 352 30 TO 44 DAYS 355 45 TO 59 DAYS 365 60 TO 75 DAYS 368 76 TO 89 DAYS 375 90 TO 119 DAYS 382 120 TO 149 DAYS 387 150 TO 179 DAYS 397 180 TO 209 DAYS 4 210 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 360 30 DAYS 372 60 DAYS 382 90 DAYS CERTIFICATES OF DEPOSIT 290 ONE MONTH 301 TWO MONTHS 316 THREE MONTHS 340 SIX MONTHS 372 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 353 ONE MONTH 375 THREE MONTHS 4 SIX MONTHS BANKERS ACCEPTANCES 346 30 DAYS 358 60 DAYS 368 90 DAYS 381 120 DAYS 386 150 DAYS 390 180 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 9/16 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 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 762 60 DAYS 768 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 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 758 60 DAYS 767 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 575 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 279 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403180035 940318 ECONOMY MICHIGAN'S PLAN FOR FINANCING SCHOOLS MAY SPREAD BUT NOT TO CERTAIN STATES BY STEVE STECKLOW AND KRYSTAL MILLER STAFF REPORTERS OF THE WALL STREET JOURNAL AN OVERWHELMING DECISION BY MICHIGAN VOTERS TO FINANCE PUBLIC SCHOOLS BY MEANS OF HIGHER SALES TAXES AND LOWER PROPERTY TAXES IS EXPECTED TO RESULT IN SIMILAR PROPOSALS IN SOME OTHER STATES BUT MICHIGAN'S SOLUTION TO THE PROBLEM OF FINANCING PUBLIC SCHOOLS MORE EQUITABLY A BURNING ISSUE ACROSS THE COUNTRY ISN'T FOR EVERYBODY AND EVEN IN MICHIGAN IT MAY PROVE A MIXED BLESSING UP UNTIL NOW ABOUT TWOTHIRDS OF MICHIGAN'S SCHOOL FUNDING CAME FROM LOCAL PROPERTY TAXES WITH MOST OF THE REMAINING PROVIDED BY THE STATE UNDER A NEW FORMULA APPROVED DECISIVELY BY VOTERS ON TUESDAY THE STATE WILL PROVIDE MORE THAN TWOTHIRDS OF THE FUNDING WITH LOCAL PROPERTY TAXES CONTRIBUTING LESS THAN A THIRD TO MAKE UP THE DIFFERENCE IN THE STATE CONTRIBUTION VOTERS AGREED TO INCREASE THE STATE SALES TAX TO 6 FROM 4 AND INCREASE CIGARETTE TAXES 50 CENTS A PACK EFFECTIVE MAY 1 THE NEW STATE FUNDING PLAN ALSO INTENDS TO MAKE PUBLIC SCHOOL FINANCING MORE EQUITABLE BY REDISTRIBUTING STATE EDUCATIONAL FUNDS AMONG DISTRICTS CURRENTLY THE POOREST SCHOOL DISTRICT IN MICHIGAN SPENDS 3200 ON EACH STUDENT AND THE RICHEST DISTRICT SPENDS 10800 A STUDENT UNDER THE NEW PLAN EACH SCHOOL DISTRICT MUST SPEND AT LEAST 4200 ON EVERY STUDENT AND BY 1996 THE MINIMUM SPENDING LEVEL FOR EVERY DISTRICT WILL RISE TO 5000 A STUDENT THE NEW PLAN SURELY WILL BE WATCHED CAREFULLY ACROSS THE COUNTRY AS 27 OTHER STATES ARE INVOLVED IN LITIGATION OVER THE INEQUITIES OF FINANCING PUBLIC SCHOOLS THROUGH PROPERTY TAXES WISCONSIN'S LEGISLATURE CURRENTLY IS WEIGHING A PLAN THAT WOULD ELIMINATE THE USE OF LOCAL PROPERTY TAXES FOR SCHOOL FUNDING OFFICIALS IN ILLINOIS RHODE ISLAND NEW HAMPSHIRE AND SOUTH CAROLINA ALSO HAVE REQUESTED INFORMATION ABOUT MICHIGAN'S PLAN BUT SCHOOL FINANCING EXPERTS SAY EVERY STATE CAN'T DUPLICATE MICHIGAN'S SOLUTION BECAUSE FEW ARE AS DEPENDENT ON PROPERTY TAXES TO FUND PUBLIC SCHOOLS IN ADDITION STATES SUCH AS TEXAS AND NEW HAMPSHIRE WHICH DON'T HAVE INCOME TAXES WOULD HAVE TO INCREASE SALES TAXES BY HUGE AND POLITICALLY UNPALATABLE AMOUNTS TO MAKE UP FOR THE SHORTFALL IF PROPERTY TAXES WERE SLASHED MOREOVER CRITICS SAY THAT SHARPLY INCREASING STATE FUNDING OF PUBLIC SCHOOLS HAS ITS DRAWBACKS STATES ARE PRESSED FOR FUNDS BY MANY PROGRAMS AND STATE TAX REVENUES WHICH RELY ON INCOME AND SALES TAXES ARE MORE AFFECTED BY RECESSIONS THAN PROPERTY TAXES IN CALIFORNIA INCREASED STATE FUNDING FOR PUBLIC SCHOOLS ULTIMATELY HELPED LEAD TO DECREASED FUNDING FOR PUBLIC HIGHER EDUCATION AS DEMANDS ON THE STATE INCREASED TO FUND HEALTH AND PENAL PROGRAMS MICHAEL KIRST A PROFESSOR OF EDUCATION AT STANFORD UNIVERSITY SAYS THAT AS STATES INCREASE THEIR FINANCING OF PUBLIC SCHOOLS THEY TYPICALLY DEMAND MORE CONTROL IN AREAS INCLUDING CURRICULUM POLICY TEACHERS' SALARIES AND OTHER AREAS HE WHO HAS THE GOLD SETS THE RULES HE SAID IN ADDITION HE SAID LARGE INCREASES IN STATE FUNDING USUALLY BRING LIMITS OR CAPS ON LOCAL SPENDING FOR PUBLIC SCHOOLS OFTEN RAISING AN UPROAR IN WEALTHIER COMMUNITIES LOCAL TAXPAYERS WHO WANT TO PAY MORE FOR THEIR LOCAL SCHOOLS ARE TOLD BY STATE GOVERNMENT THEY MAY NOT EVEN IF THE MAJORITY IS WILLING TO PAY FOR IT HE SAID INDEED THE MICHIGAN PLAN WHICH LIMITS WHAT LOCAL DISTRICTS CAN SPEND ALREADY HAS DRAWN CRITICISM FROM THE STATE'S RICHEST COMMUNITIES INCLUDING BLOOMFIELD HILLS NORTH OF DETROIT 9403180034 940318 WHAT'S NEWS BUSINESS AND FINANCE KEMPER DIRECTORS UNANIMOUSLY REJECTED THE 22 BILLION BID FROM GE CAPITAL AMID INTENSIFYING PRESSURE FROM SHAREHOLDERS TO SELL THE COMPANY IN A LETTER KEMPER'S CHAIRMAN ACCUSED GE OF STEALING KEMPER WITH A LOWBALL' PROPOSAL AND SAID THAT GE IS A CORPORATE RAIDER BUT THE HARSH LANGUAGE COULD ALSO BE A TACTICAL MOVE TO FORCE GE TO UP THE ANTE THE HOUSE WAYS AND MEANS HEALTH PANEL VOTED TO REDUCE WHAT DEMOCRATICBACKED HEALTH LEGISLATION REQUIRES SMALL BUSINESSES TO PAY TO INSURE WORKERS WHO ARE NOW COVERED THROUGH SPOUSE OR FAMILY POLICIES SIX MAJOR AIRLINES SETTLED FEDERAL CHARGES THAT THEY FIXED PRICES IN A SCHEME THAT MAY HAVE COST CONSUMERS NEARLY 2 BILLION FROM 1988 TO 1992 AMR PREDICTED A WIDER FIRSTQUARTER LOSS THAN ANALYSTS' ESTIMATES BECAUSE OF WINTER STORMS AND FARE CUTS THE WHITE HOUSE ALLOWED BRITISH AIRWAYS TO CONTINUE ITS MARKETING ALLIANCE WITH USAIR FOR ANOTHER YEAR CONRAIL'S CAPACITY IS STRAINED BECAUSE OF SURGING FREIGHT SHIPMENTS AGGRAVATED BY THIS WINTER'S COLD AND ICE RAIL SHIPPERS ARE FACING DELAYS DISRUPTIONS AND HIGHER COSTS AS A RESULT CATERPILLAR PLANS TO HIRE 200 WORKERS MORE THAN PREVIOUSLY PLANNED AT ITS ILLINOIS PLANTS CITING HIGHERTHANEXPECTED DEMAND FOR THE COMPANY'S CONSTRUCTION EQUIPMENT THE DOW JONES INDUSTRIAL AVERAGE RALLIED 1699 TO 386514 AFTER CATERPILLAR'S PLANS PROMPTED INVESTORS TO BUY SOME OF THE ECONOMICALLY SENSITIVE STOCKS THAT MAKE UP THE AVERAGE AT&T AND LOTUS UNVEILED A JOINT VENTURE FOR A COMPUTERINFORMATION SERVICE BUILT AROUND NOTES SOFTWARE THE SERVICE LETS USERS CONFER ON LINE AND BROWSE THROUGH TEXT OR VIDEO LAWYERS CAN NO LONGER CHARGE NONREFUNDABLE FEES FOR MOST KINDS OF WORK NEW YORK'S HIGHEST COURT SAID IN A GROUNDBREAKING RULING WHITTLE'S EDISON PROJECT IS EXPECTED TO GET CHARTERS TODAY TO START THREE ELEMENTARY SCHOOLS TO BE RUN FOR PROFIT AS PART OF MASSACHUSETTS' PLANS FOR 15 NEW PUBLICLY FUNDED SCHOOLS WHITTLE EXPECTS TO CLOSE ITS WHITTLE BOOKS UNIT DUE TO LACK OF ADVERTISER SUPPORT FOR ITS NEXT LINEUP OF BOOKS GENERAL MOTORS' SATURN SMALLCAR UNIT WILL CUT DAILY PRODUCTION 27 AND DELAY PLANS FOR A SECOND PLANT REFLECTING A 91DAY SUPPLY OF UNSOLD CARS WORDPERFECT PLANS TO INTRODUCE ON TUESDAY A PROGRAM THAT WILL PIT THE SOFTWARE MAKER AGAINST ADOBE SYSTEMS IN A RACE TO SUPPLY A KEY PIECE OF ELECTRONICPUBLISHING SOFTWARE THE SENATE PASSED LEGISLATION TO SPUR LENDING THAT ENCOURAGES DEVELOPMENT IN DISTRESSED COMMUNITIES LUFTHANSA'S LOSS FOR THE YEAR NARROWED SURPASSING EVEN THE GERMAN AIRLINE'S OWN EXPECTATIONS BONDS LEHMAN BROTHERS TREASURY INDEX 534008 OFF 1338 COMMODITIES OIL 1482 A BARREL OFF 24 CENTS DOW JONES FUTURES INDEX 14405 OFF 152 SPOT INDEX 13228 OFF 045 DOLLAR 10585 YEN OFF 022 16890 MARKS UP 00005 9403180033 940318 BUSINESS BRIEF COMPUTERVISION CORP COMPANY LANDS KEY SALE OF SOFTWARE TO ROLLS ROYCE COMPUTERVISION CORP WON A STRATEGICALLY CRITICAL 214 MILLION SALE OF ITS COMPUTERDESIGN SOFTWARE AND SERVICES TO ROLLS ROYCE AEROSPACE GROUP OF ENGLAND COMPUTERVISION OF BEDFORD MASS STRUGGLING TO REMAKE ITSELF AS A SOFTWARE AND SERVICES COMPANY AFTER SHEDDING ITS MANUFACTURING OPERATIONS AND MORE THAN HALF ITS WORK FORCE HAS FACED STIFF COMPETITION FROM SMALLER SOFTWARE MAKERS UNBURDENED BY COMPUTER HARDWARE BUSINESSES COMPUTERVISION SAID THE AGREEMENT WITH THE ROLLSROYCE PLC UNIT IS FOR AN INITIAL 1000 COPIES OF ITS LATEST COMPUTERAIDED DESIGN SOFTWARE PACKAGE AND OTHER SERVICES THE ORDER COULD LEAD TO ANOTHER 1000 COPIES AND AS MUCH AS 60 MILLION OVER SEVEN YEARS IT SAID THIS IS A HUGE SHOT IN THE ARM FOR COMPUTERVISION SAID DAVID BURDICK WHO FOLLOWS THE INDUSTRY FOR MARKET RESEARCHER GARTNER GROUP INC STAMFORD CONN COMPUTERVISION'S SOFTWARE AND CONSULTINGSERVICES REVENUE WAS 296 MILLION LAST YEAR 9403180032 940318 BUSINESS BRIEF TRANS WORLD AIRLINES CARRIER TO ABANDON PLANS TO ESTABLISH HUB IN ATLANTA TRANS WORLD AIRLINES FACING INCREASED COMPETITION FROM RIVAL CARRIERS SAID IT WILL ABANDON PLANS TO ESTABLISH A HUB IN ATLANTA WHILE EXPANDING SERVICE AT ITS ONLY REMAINING MAJOR BASE IN ST LOUIS THE NATION'S SEVENTHLARGEST AIRLINE SAID IT PLANS TO CUT SERVICE FROM ATLANTA BY 80 TO 11 DAILY FLIGHTS FROM THE CURRENT 57 BY JUNE 1 IT WILL INCREASE DEPARTURES FROM ST LOUIS TO 300 FROM THE CURRENT 257 A TWA SPOKESMAN SAID THE AIRLINE WOULD CONTINUE TO SERVE NEW YORK'S KENNEDY INTERNATIONAL AIRPORT AND WASHINGTON NATIONAL AIRPORT FROM ATLANTA THE INCREASED SERVICE FROM ST LOUIS WOULD BE FED BY PLANES THAT NOW NORMALLY SERVICE ATLANTA AS WELL AS NEW PLANES THE AIRLINE HAS ACQUIRED SEPARATELY TWA SAID IT WOULD STREAMLINE ITS NORTH ATLANTIC ROUTES IT SUSPENDED ITS SERVICE TO BRUSSELS CITING STIFF COMPETITION AND RESULTING LOW YIELDS IT ALSO SAID IT WOULD BEGIN DAILY SERVICE TO TEL AVIV ON APRIL 3 AND WOULD START NONSTOP SERVICE TO CAIRO EGYPT AS EARLY AS MAY 1 9403180031 940318 BUSINESS BRIEF WENDTBRISTOL HEALTH SERVICES CORP EXPIRATION DATE EXTENDED ON WARRANTS OUTSTANDING WENDTBRISTOL HEALTH SERVICES CORP COLUMBUS OHIO SAID IT HAS EXTENDED THE EXPIRATION DATE OF ITS WARRANTS CURRENTLY OUTSTANDING TO MAY 1 1995 THE PRIOR EXPIRATION DATE FOR THE WARRANTS WAS MAY 1 WENDTBRISTOL SAID HOLDERS OF THE WARRANTS UPON EXERCISE OF THEM AT A PRICE OF 375 WOULD RECEIVE 2 3/4 SHARES OF THE COMPANY'S COMMON STOCK AND ONE SERIES II WARRANT THE COMPANY SAID ITS SERIES II WARRANTS ARE YET TO BE ISSUED THESE WARRANTS WHICH THE COMPANY EXPECTS TO ISSUE AFTER COMPLYING WITH FILINGS ASSOCIATED WITH CERTAIN SECURITIES REGULATIONS ALSO HAVE BEEN EXTENDED AND WILL EXPIRE MAY 1 1996 WENDTBRISTOL SAID UPON EXERCISE OF A SERIES II WARRANT THE HOLDER WILL RECEIVE UPON PAYMENT OF 6 TWO WENDTBRISTOL COMMON SHARES WENDTBRISTOL IS A HEALTHCARE CONCERN WITH INTERESTS IN THE OPERATION OF TWO NURSING HOMES SIX RETAIL PHARMACIES A HOME HEALTHCARE AGENCY AND THROUGH A LIMITED PARTNERSHIP AN OUTPATIENT DIAGNOSTIC CENTER 9403180030 940318 FINANCING BUSINESS ALIAS RESEARCH INC ALIAS RESEARCH INC TORONTO SAID IT PLANS TO ISSUE UP TO 23 MILLION SHARES TO RAISE FUNDS FOR WORKING CAPITAL AND POSSIBLE ACQUISITIONS AN OFFICIAL OF THE SOFTWAREDESIGN CONCERN SAID THE ISSUE WILL BE PRICED IN THE NEXT TWO MONTHS ALIAS HAS ABOUT 85 MILLION SHARES OUTSTANDING ON THE NASDAQ STOCK MARKET YESTERDAY ALIAS CLOSED AT 1750 OFF 375 CENTS UNDERWRITERS FOR THE ISSUE ARE ROBERTSON STEPHENS & CO AND SALOMON BROTHERS INC 9403180029 940318 MARKETING BRIEF BARNES & NOBLE INC COMPANY REPORTS 81 JUMP IN FISCAL 4THQUARTER PROFIT BARNES & NOBLE INC WHICH WENT PUBLIC IN OCTOBER REPORTED A 81 JUMP IN FISCAL FOURTHQUARTER PROFIT REFLECTING STRONGER SALES AT THE BOOKSELLER'S SUPERSTORES NET INCOME FOR THE QUARTER ENDED JAN 29 ROSE TO 271 MILLION OR 87 CENTS A SHARE FROM 15 MILLION OR 67 CENTS A SHARE A YEAR AGO THE YEARAGO FIGURE INCLUDED A ONETIME EXTRAORDINARY LOSS OF 87 MILLION OR 39 CENTS A SHARE FOR EARLY PAYMENT OF DEBT AND ACCOUNTING CHANGES REVENUE ROSE NEARLY 19 TO 4837 MILLION THE NEW YORK COMPANY PARTLY ATTRIBUTED ITS IMPROVED EARNINGS TO THE SUCCESS AND CRITICAL MASS ACHIEVED BY ITS SUPERSTORES AS OF JAN 29 BARNES & NOBLE OPERATED 203 SUPERSTORES 72 OF WHICH WERE OPENED IN 1993 UNDER THE BARNES & NOBLE BOOKSTOP AND BOOKSTAR TRADENAMES IT ALSO OPERATED 734 MALL STORES UNDER THE B DALTON BOOKSELLER DOUBLEDAY BOOK SHOPS AND SCRIBNER'S BOOKSTORES NAMES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BARNES & NOBLE SHARES CLOSED AT 2625 DOWN 1 9403180028 940318 BUSINESS BRIEF LEARNING CO EDUCATIONAL SOFTWARE MAKER SEES WEAK 3RDPERIOD RESULTS LEARNING CO SAID AN UNEXPECTED INCREASE IN BAD DEBTS WILL CAUSE THIRDQUARTER OPERATING RESULTS TO FALL BELOW ANALYSTS' EXPECTATIONS THE EDUCATIONAL SOFTWARE MAKER BASED IN FREEMONT CALIF SAID IT RAISED ITS RESERVE FOR BAD DEBTS BY 12 MILLION BECAUSE OF AN INCREASE IN PASTDUE RECEIVABLES FROM UNIDENTIFIED DISTRIBUTORS AND RETAILERS OF ITS PRODUCTS WE SEE SIGNS OF FINANCIAL WEAKNESS OUT THERE SAID LES SCHMIDT THE CHIEF FINANCIAL OFFICER AS A RESULT MR SCHMIDT SAID THE COMPANY WOULD BREAK EVEN OR POST A SMALL LOSS IN THE QUARTER ENDING MARCH 31 ANALYSTS HAD EXPECTED A PROFIT OF BETWEEN EIGHT CENTS AND 10 CENTS A SHARE HE SAID IN THE YEAREARLIER PERIOD LEARNING CO REPORTED EARNINGS OF 430000 OR SIX CENTS A SHARE ON SALES OF 81 MILLION 9403180027 940318 INTERNATIONAL BRIEF VOLKSWAGEN AG LOSS FOR 1993 WAS NARROWER THAN CHAIRMAN'S PREDICTION GERMANY'S LARGEST AUTO MAKER VOLKSWAGEN AG REPORTED THAT ITS CONSOLIDATED LOSS FOR 1993 WAS 194 BILLION MARKS 115 BILLION NARROWER THAN THE COMPANY HAD FORECAST VW CHAIRMAN FERDINAND PIECH EARLIER HAD PREDICTED THAT THE COMPANY WOULD LIKELY POST A LOSS FOR THE YEAR OF AS MUCH AS 23 BILLION MARKS IN 1992 THE GROUP POSTED A SLIM PROFIT OF 147 MILLION MARKS DESPITE THE HUGE LOSS THE COMPANY'S BOARD OF SUPERVISORS DECIDED TO MAINTAIN THE 1993 DIVIDEND UNCHANGED FROM ITS 1992 LEVEL OF TWO MARKS SALES BY VW SLUMPED 10 TO 7659 BILLION MARKS IN 1993 FROM 8540 BILLION MARKS A YEAR EARLIER AS THE DEEP RECESSION IN GERMANY AND EUROPE REDUCED ITS MARKET IN A MOVE THAT MAY AFFECT VW'S FUTURE COMPETITIVENESS THE COMPANY SLASHED ITS INVESTMENT PROGRAM BY 47 TO 484 BILLION MARKS IN 1993 FROM 925 BILLION MARKS 9403180026 940318 TECHNOLOGY CALL FORWARDING IS A WAY FOR CRIMINALS TO THWART WIRETAPS FBI WANTS LAW REQUIRING THAT CALLS CAN BE TAPPED INDUSTRY RESISTS MEASURE BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A GROWING NUMBER OF CRIMINALS ARE OUTSMARTING LAWENFORCEMENT AGENCIES IN A NEW GAME OF TELEPHONE TAG THEY HAVE FOUND THAT CALL FORWARDING CAN THWART WIRETAPS AT LEAST TEMPORARILY CRIMINALS CAN GO TO ANY PHONE CALL THE INTELLIGENT NETWORK' AND ROUTE CALLS ANYWHERE SAID JAMES KALLSTROM SPECIAL AGENT FOR THE FEDERAL BUREAU OF INVESTIGATION WHEN THEY DO IT OFTEN TAKES LAWENFORCEMENT OFFICIALS A DAY OR TWO TO FIGURE OUT WHAT IS HAPPENING AND IT TAKES SOME TIME AFTER THAT FOR THE AUTHORITIES TO GET A COURT ORDER TO TAP THE NUMBER TO WHICH THE CALLS ARE BEING ROUTED EVEN THEN A CLEVER CRIMINAL CAN MERELY FORWARD CALLS TO YET ANOTHER NUMBER IN ONE STATE MR KALLSTROM TOLD REPORTERS AT A NEWS BRIEFING AT FBI HEADQUARTERS 25 OF ALL WIRETAPS ARE ADVERSELY AFFECTED BY SUCH TELEPHONE HIDEANDSEEK THIS ISN'T SOMETHING LAWENFORCEMENT OFFICIALS LIKE TO TALK ABOUT PUBLICLY HE SAID BUT MR KALLSTROM DISCUSSED THE ISSUE AS PART OF THE FBI'S INTENSIFIED EFFORT TO WIN LAWMAKERS' SUPPORT FOR CONTROVERSIAL LEGISLATION THAT WOULD REQUIRE COMMUNICATIONS COMPANIES TO MAKE SURE CALLS CAN BE TAPPED FBI DIRECTOR LOUIS FREEH IS EXPECTED TO TELL LAWMAKERS AT A JOINT SENATEHOUSE HEARING THIS MORNING THAT LAWENFORCEMENT AGENCIES NEED THE LEGISLATION TO MAINTAIN EFFECTIVE ELECTRONIC SURVEILLANCE BUT THE PROPOSED BILL THE FBI STILL HASN'T FOUND A LAWMAKER WILLING TO INTRODUCE IT DESPITE AT LEAST THREE YEARS OF LOBBYING GIVES PHONECOMPANY EXECUTIVES THE WILLIES THE LEGISLATION HAS A NUMBER OF SUBSTANTIAL PROBLEMS INCLUDING A PRICE TAG THAT COULD TOP 2 BILLION AND A PROVISION THAT COULD THWART NEW TECHNOLOGIES SAID ROY NEEL PRESIDENT OF THE US TELEPHONE ASSOCIATION AN INDUSTRY GROUP MR NEEL WHO FORMERLY WAS PRESIDENT CLINTON'S DEPUTY CHIEF OF STAFF ALSO IS SCHEDULED TO TESTIFY TODAY IT TOOK CROOKS 20 YEARS TO FIGURE OUT THEY CAN USE CALL FORWARDING TO THWART LAW ENFORCEMENT AND IT TOOK LAW ENFORCEMENT ANOTHER TWO YEARS TO FIGURE OUT THEY HAD A PROBLEM ONE PHONE EXECUTIVE SAID THEIR SOLUTION IS A LAW THAT WOULD HAVE PREVENTED US FROM OFFERING CALL FORWARDING IF THE LEGISLATION PASSES NO COMPANY IN ITS RIGHT MIND WOULD DEVELOP ANY NEW SERVICE FOR THE ELECTRONIC SUPERHIGHWAY UNTIL THE JUSTICE DEPARTMENT HAD GIVEN ITS GOOD HOUSEKEEPING SEAL OF APPROVAL MR NEEL SAID HE SAID THE JUSTICE DEPARTMENT ISN'T EQUIPPED TO EVALUATE TELECOMMUNICATIONS EQUIPMENT HE ALSO ARGUED THAT THE PROPOSED LEGISLATION IS A SOLUTION SEEKING A PROBLEM ADDING THERE HAS BEEN NO DOCUMENTED CASE WHERE A TELEPHONE COMPANY HAS REFUSED TO DELIVER ON A WIRETAP ORDER MR NEEL COMPLAINED THAT THE FBI PROPOSAL WOULD AFFECT TELEPHONE COMPANIES MOBILEPHONE COMPANIES AND OTHER COMMON CARRIERS BUT WOULD EXCLUDE PRIVATELINE SERVICES AND OFFICE SWITCHBOARDS IT POTENTIALLY CARVES OUT LARGE HOLES THAT COULD BE SAFE HARBORS FOR CRIMINALS HE SAID THE PROPOSED BILL ALSO CONCERNS PRIVACY ADVOCATES WHO SAY IT WOULD GIVE FEDERAL STATE AND LOCAL LAWENFORCEMENT OFFICIALS ACCESS TO SENSITIVE PERSONAL DATA AS COMMUNICATIONS NETWORKS EVOLVE THEY WILL BE ABLE TO DELIVER VIDEO ENTERTAINMENT INFORMATION AND SHOPPING SERVICES LAWENFORCEMENT AGENCIES COULD OBTAIN THAT DATA WITHOUT MEETING THE STRINGENT REQUIREMENTS OF A COURTORDERED WIRETAP SAID JERRY BERMAN EXECUTIVE DIRECTOR OF THE ELECTRONIC FRONTIER FOUNDATION 9403180025 940318 INTERNATIONAL BRIEF LVMH MOETHENNESSY LOUIS VUITTON BETTERTHANEXPECTED NET IN 1993 SURPRISES ANALYSTS FRENCH LUXURY GOODS MAKER LVMH MOETHENNESSY LOUIS VUITTON ADR SURPRISED ANALYSTS WITH BETTERTHANEXPECTED 1993 EARNINGS AND A BOLD PROFIT FORECAST FOR 1994 DESPITE THE UNGLAMOROUS ECONOMIC ENVIRONMENT LAST YEAR'S NET PROFIT FELL ONLY TO 297 BILLION FRANCS 5173 MILLION A DROP OF 12 FROM 1992 EVEN THE CHAMPAGNE DIVISION'S OPERATING PROFIT WAS STABLE STRONG SALES GROWTH AT THE END OF THE YEAR BOOSTED 1993 SALES 10 TO 2382 BILLION FRANCS THE COMPANY WHICH MAKES LEATHER GOODS AND COSMETICS AS WELL AS CHAMPAGNE SAID GROWTH WILL KEEP SPARKLING IN 1994 BY LATE FEBRUARY SALES ALREADY TOPPED 1993 LEVELS BY 28 FOR THE WHOLE YEAR GROUP CHAIRMAN BERNARD ARNAULT PREDICTED A 20 RISE IN NET PROFIT FOLLOWING THE EARNINGS REPORT LVMH SHARES GAINED 5 OR 208 FRANCS 36 CLIMBING TO 4389 ON THE PARIS STOCK EXCHANGE YESTERDAY 9403180024 940318 BUSINESS BRIEF OSHKOSH B'GOSH INC PLANS TO BUY RIO SPORTSWEAR ARE TERMINATED BY COMPANY OSHKOSH B'GOSH INC SAID IT TERMINATED ITS NEGOTIATIONS TO ACQUIRE RIO SPORTSWEAR INC A JEANS MAKER THAT RECENTLY SIGNED AN AGREEMENT TO BUY THE JEANS BUSINESS OF CALVIN KLEIN INC IN THE FINAL ANALYSIS WE WEREN'T ABLE TO REACH AN AGREEMENT AS TO THE STRATEGIC DIRECTION OF RIO GOING FORWARD AND CERTAINLY CALVIN KLEIN WAS A PART OF THAT SAID DAVID OMACHINSKI CHIEF FINANCIAL OFFICER OF OSHKOSH B'GOSH IN OSHKOSH WIS HE ALSO DISCLOSED THAT OSHKOSH HAD PLANNED TO BUY CLOSELY HELD RIO FOR IN THE RANGE OF ABOUT 65 MILLION NEW YORKBASED RIO WITH ANNUAL SALES OF MORE THAN 150 MILLION IS VERY INTENT ON COMPLETING THE ACQUISITION OF CALVIN KLEIN JEANS FOR 35 MILLION IN THE NEXT FEW WEEKS SAID ARNOLD SIMOND RIO PRESIDENT EVERYTHING IS STATUS QUO WE CAN HANDLE THE FINANCING ON OUR OWN CALVIN KLEIN FOR ME REPRESENTS SUCH A TREMENDOUS OPPORTUNITY THAT I WOULD TURN DOWN 65 MILLION FROM OSHKOSH HE SAID 9403180023 940318 BUSINESS BRIEF AVON PRODUCTS INC LINE OF INTIMATE APPAREL CASUAL CLOTHING IS LAUNCHED AVON PRODUCTS INC LAUNCHED A LINE OF INTIMATE APPAREL AND CASUAL CLOTHING FOR WOMEN IN THE US AND SAID IT EXPECTS THE LINE TO CONTRIBUTE 65 MILLION TO 75 MILLION IN SALES THIS YEAR THE LINE CALLED AVON STYLE INCLUDES WARNERS AND FRUIT OF THE LOOM FOUNDATION GARMENTS SCAASI SLEEPWEAR AND CASUAL SPORTSWEAR AVON STYLE IS FEATURED IN A SEPARATE 16PAGE CATALOG AND IN AN EIGHTPAGE INSERT IN NEW YORKBASED AVON'S REGULAR BROCHURES THE RESULTS OF OUR MARKET TESTING OF THE APPAREL LINE IN THE UNITED STATES LAST FALL WERE OUTSTANDING SAID JAMES E PRESTON AVON'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER BRANDNAME APPAREL IS A RELATIVELY NEW ITEM FOR AVON IN THE US BUT THE COMPANY SAID IT SELLS APPAREL IN 17 COUNTRIES LAST YEAR THE COMPANY'S APPAREL SALES WERE MORE THAN 350 MILLION 9403180022 940318 BUSINESS BRIEF PHILLIPSVAN HEUSEN CORP CHARGE IS CITED FOR 81 DROP IN FISCAL 4THQUARTER PROFIT PHILLIPSVAN HEUSEN CORP A FOOTWEAR AND APPAREL MAKER SAID NET INCOME IN ITS FISCAL FOURTH QUARTER FELL 81 DUE LARGELY TO A ONETIME CHARGE FOR EARLY RETIREMENT OF DEBT FOR THE QUARTER ENDED JAN 30 NET WAS 18 MILLION OR SIX CENTS A SHARE COMPARED WITH 97 MILLION OR 36 CENTS A SHARE A YEAR EARLIER THE MOST RECENT QUARTER INCLUDED A 114 MILLION CHARGE FOR THE DEBT PREPAYMENT SALES WERE UP 13 TO 3091 MILLION IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY PHILLIPSVAN HEUSEN STOCK ROSE 75 CENTS TO 37875 THE COMPANY SAID ALTHOUGH THE WINTER STORMS WILL BE A FACTOR IN THE COMPANY'S FIRST QUARTER RESULTS IT IS OPTIMISTIC THAT THE CONTINUED EXPANSION OF BASS APPAREL AND GEOFFREY BEENE FOR WOMEN COMBINED WITH THE INTRODUCTION OF A BASS KIDS MERCHANDISE LINE WILL PROVIDE THE BASIS FOR STRONG GROWTH 9403180021 940318 BUSINESS BRIEF MEDTRONIC INC COMPANY ACQUIRES DLP INC IN 128 MILLION TRANSACTION MEDTRONIC INC MINNEAPOLIS SAID IT ACQUIRED DLP INC THE WORLD LEADER IN DEVELOPMENT AND MANUFACTURING OF CANNULA PRODUCTS USED IN HEART SURGERY FOR 128 MILLION THE MAKER OF MEDICAL DEVICES SAID IT ACQUIRED SUBSTANTIALLY ALL OF THE ASSETS AND LIABILITIES OF THE GRAND RAPIDS MICHBASED CLOSELY HELD CONCERN AND EXPECTS TO REALIZE FUTURE TAX BENEFITS OF ABOUT 30 MILLION ASSOCIATED WITH THE ACQUISITION DLP HAS ANNUAL SALES OF ABOUT 36 MILLION MEDTRONIC SAID CANNULA PRODUCTS ARE SPECIALIZED TUBES USED IN CARDIAC SURGERY TO CONNNECT THE BODY'S CIRCULATORY SYSTEM TO AN EXTERNAL PERFUSION CIRCUIT COMMONLY KNOWN AS THE HEARTLUNG MACHINE MEDTRONIC SAID THE ACQUISITION OF DLP IN ADDITION TO THE PREVIOUSLY ANNOUNCED ACQUISITION OF ELECTROMEDICS INC WILL FURTHER STRENGTHEN ITS CARDIAC SURGERY BUSINESS AND SIGNIFICANTLY ENHANCE ITS PRODUCT LINE THE COMPANY'S BIOMEDICUS ALREADY MAKES CANNULA PRODUCTS 9403180020 940318 COMMUNITY LENDING BILL IS APPROVED BY THE SENATE WASHINGTON THE SENATE PASSED LEGISLATION DESIGNED TO SPUR LENDING THAT ENCOURAGES COMMUNITY DEVELOPMENT THE SENATE ADOPTED THE BILL ON A VOICE VOTE ESSENTIALLY BACKING A CLINTON ADMINISTRATION PROPOSAL TO PROVIDE 382 MILLION FOR SPECIAL COMMUNITYLENDING INSTITUTIONS OVER FOUR YEARS IT IS AIMED AT REVITALIZING DISTRESSED COMMUNITIES BY HELPING TO ENLARGE AND STRENGTHEN THE ABILITY OF BANKS CREDIT UNIONS AND OTHER LOCAL LENDERS AND TO IMPROVE THEIR ACCESS TO CAPITAL SAID DONALD RIEGLE D MICH CHAIRMAN OF THE BANKING COMMITTEE EARLIER THIS YEAR THE HOUSE PASSED SIMILAR LEGISLATION ENDORSING WHAT THE PRESIDENT HAS MADE A CENTERPIECE OF HIS EFFORTS TO BOOST CREDIT AND FINANCIAL SERVICES IN POOR URBAN AND RURAL AREAS BEFORE PASSING THE BILL THE SENATE IN A SERIES OF VOICE VOTES APPROVED A RANGE OF OTHER BANKINGRELATED AMENDMENTS ONE OFFERED BY SEN RICHARD BRYAN D NEV WAS FASHIONED TO PROMOTE SECURITIZATION OF COMMERCIAL REALESTATE LOANS IT WOULD CLEAR AWAY SOME EXISTING STATE LAWS AND SECURITIES AND EXCHANGE COMMISSION PROVISIONS THAT ARE SEEN AS IMPEDIMENTS TO THE SECONDARY MARKET FOR SUCH LOANS BUT THE EFFECT IS LIKELY TO BE MODEST IT DOESN'T OPEN THE FLOODGATES A SENATE STAFFER SAID 9403180019 940318 MARKETING BRIEF NOTED CBS SPORTS NEAL PILSON PRESIDENT OF CBS SPORTS SINCE NOVEMBER 1981 IS EXPECTED TO ANNOUNCE THAT HE IS STEPPING ASIDE ALTHOUGH HE WILL REMAIN AT CBS INC IN ANOTHER CAPACITY THE ANNOUNCEMENT COULD COME AS EARLY AS TODAY MR PILSON DECLINED TO COMMENT EXCEPT TO SAY THAT HE WILL MAKE AN ANNOUNCEMENT SOON A LEADING CONTENDER TO SUCCEED MR PILSON IS JOSEPH ABRUZZESE THE NETWORK'S SENIOR VICE PRESIDENT OF SALES NEWSSTAND NEW YORK TIMES CO SAYS THE WEEKDAY AND SATURDAY SUGGESTED NEWSSTAND PRICE OF THE NATIONAL EDITION OF ITS FLAGSHIP PAPER WILL RISE TO 1 FROM 75 CENTS IN THE WEST AND MIDWEST EFFECTIVE APRIL 11 BEGINNING APRIL 10 THE NEWSSTAND PRICE FOR SUNDAY EDITIONS IN THE NORTHEAST CORRIDOR EXCEPT FOR THE NEW YORK CITY AREA WILL RISE TO 250 FROM 2 NBC SUIT GENERAL ELECTRIC CO'S NBC NEWS SETTLED A LAWSUIT FILED BY FORMER NBC CORRESPONDENT ARTHUR KENT FOR AN UNDISCLOSED SUM OF MONEY AND ANNOUNCED THAT MR KENT'S DISMISSAL IN AUGUST 1992 WAS DUE TO A CONTRACT DISPUTE NBC HAD CLAIMED HE REFUSED AN ASSIGNMENT TO COVER THE WAR IN THE FORMER YUGOSLAVIA 9403180018 940318 INDIA'S BANKING INDUSTRY PREPARES FOR NINE NEW PRIVATE INSTITUTIONS BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL BOMBAY INDIA INDIA'S BANKING INDUSTRY DOMINATED BY SLUGGISH BLOATED STATEOWNED INSTITUTIONS IS ABOUT TO MAKE WAY FOR THE NATION'S FIRST NEW PRIVATE COMMERCIAL BANKS IN 25 YEARS NINE PRIVATELY OWNED BANKS HAVE BEEN GIVEN THE GOAHEAD TO OPEN FOR BUSINESS STARTING EARLY NEXT MONTH WITH UTI BANK LTD WHICH IS BACKED BY UNIT TRUST OF INDIA THE COUNTRY'S LARGEST MUTUALFUND COMPANY DOZENS MORE POTENTIAL APPLICANTS ARE WAITING IN LINE AS PART OF ITS BROAD ECONOMICREFORM PROGRAM THE GOVERNMENT OF PRIME MINISTER PV NARASIMHA RAO LAST YEAR DECIDED TO GRANT THE NEW BANKING LICENSES TO INJECT COMPETITION INTO THE INDUSTRY AND THUS IMPROVE EFFICIENCY AND SERVICE EXECUTIVES INVOLVED IN SETTING UP THE NEW BANKS APPEAR HAPPY TO OBLIGE WHAT WE'LL OFFER IS THE LATEST IN TECHNOLOGY AND QUALITY OF SERVICE AND WE'RE NOT GOING TO HAVE THE DISADVANTAGES OF A NATIONALIZED BANK SUCH AS TOO MANY BRANCHES TOO MUCH STAFF SAYS PV MAIYA MANAGING DIRECTORDESIGNATE OF ICICI BANKING CORP WHICH PLANS TO START OPERATIONS BASED IN VADODARA BY MIDYEAR THOUGH SOME OF THE INSTITUTIONS LICENSED TO SET UP BANKS ARE STATEOWNED INCLUDING UNIT TRUST OF INDIA THE RESERVE BANK INDIA'S CENTRAL BANK HAS SAID THAT 60 OF EACH NEW BANK'S EQUITY MUST BE HELD BY PRIVATE INVESTORS WITHIN A YEAR OF OPENING SIGNIFICANTLY THE BANKS ARE EXPECTED TO OPERATE INDEPENDENTLY OF THEIR BACKERS STATEOWNED OR OTHERWISE THE IMPORTANT THING IS TO EVOLVE A DIFFERENT CORPORATE CULTURE ALTOGETHER SAYS AC SHAH A FORMER CHAIRMAN OF STATEOWNED BANK OF BARODA WHO IS HELPING UNIT TRUST SET UP UTI BANK BASED IN AHMEDABAD GUJARAT STATE WE HAVE TO PUT THE CUSTOMER AT THE CENTER AND PUT PROFESSIONALISM IN CHARGE SUCH CHANGES WOULD REVERSE THE STASIS OF 25 YEARS OF STATE DOMINANCE OF THE INDUSTRY THE DECISION TO ALLOW NEW PRIVATESECTOR BANKS BROKE A FREEZE ON LICENSES IMPOSED IN 1969 WHEN 14 OF THE NATION'S LARGEST BANKS WERE NATIONALIZED THE PUBLICSECTOR BANKS NOW HOLD ABOUT 87 OF TOTAL BANK DEPOSITS IN THE COUNTRY THE REST OF THE MARKET IS SHARED BY FOREIGN BANKS AND SEVERAL SMALL PRIVATE AND COOPERATIVE BANKS THAT WEREN'T NATIONALIZED AMONG OTHER THINGS NATIONALIZATION WAS MEANT TO ANSWER CRITICISM THAT INDIA'S PRIVATE BANKS GAVE FAVORABLE TREATMENT TO ASSOCIATED BUSINESSES BUT IT ALSO SPAWNED LUMBERING GIANTS BURDENED WITH UNIONIZED LABOR FORCES OVERSTAFFING ANTIQUATED WORKING METHODS AND BUREAUCRATIC AND POLITICAL INTERFERENCE THE NEW PRIVATE BANKS EXPECT TO OPERATE LARGELY FREE OF SUCH DISADVANTAGES MANY ALSO PLAN TO SEEK FOREIGN PARTNERS FOR EXAMPLE HOUSING DEVELOPMENT FINANCE CORP OR HDFC A PRIVATE FINANCE COMPANY BASED IN BOMBAY SAYS THAT IT IS TALKING TO SEVERAL CANDIDATES WHICH IT DECLINED TO IDENTIFY AND THAT IT IS WILLING TO SELL TO A FOREIGN PARTNER A 20 STAKE IN THE BANK IT'S SETTING UP INDUSIND BANK LTD BASED IN PUNE MAHARASHTRA AND BACKED BY THE DIVERSIFIED BOMBAYBASED HINDUJA GROUP SAYS 40 OF ITS EQUITY WILL BE HELD BY INDIANS OVERSEAS OR HINDUJAASSOCIATED COMPANIES OVERSEAS THE MAIN ADVANTAGE OF OUR BUSINESS WILL BE THE STRENGTH OF NONRESIDENT INDIANS SAYS ASHOK HINDUJA PRESIDENT OF HINDUJA GROUP REFERRING TO THE GROWING FLOW OF EXPATRIATE FUNDS INTO INDIA STILL THE GOVERNMENT WON'T ALLOW FOR UNBRIDLED EXPANSION OF PRIVATESECTOR BANKING RAVI VIRA GUPTA THE RANKING CIVIL SERVANT IN THE FINANCE MINISTRY'S BANKING DEPARTMENT SAYS THE NUMBER OF BANKING LICENSES GRANTED WILL INCREASE VERY SLOWLY WE DON'T WANT A SITUATION LIKE IN SOME COUNTRIES WHERE THERE WAS A FLOOD AND SEVERAL WENT BUST HE SAYS THE MINISTRY ALSO WILL LIKELY TURN DOWN APPLICANTS INVOLVED IN MANUFACTURING ONCE APPROVAL IS IN HAND THE NEW BANKS FACE STRINGENT FINANCIAL REQUIREMENTS AS WELL AS PRODDING FROM THE CENTRAL BANK TO TAKE THEIR BUSINESS TO AREAS OF THE COUNTRY WHERE ACCESS TO BANKING IS LIMITED STARTUP CAPITAL IS SET AT A MINIMUM OF ONE BILLION RUPEES 321 MILLION AND MOST OF THE BANKS PLAN TO RAISE ADDITIONAL CAPITAL THROUGH PUBLIC SHARE OFFERINGS WHICH WILL LET THEM MEET THE 60 PUBLICSHAREHOLDING REQUIREMENT THE BANKS ALSO WILL HAVE TO SATISFY AN 8 CAPITALADEQUACY REQUIREMENT EQUITY CAPITAL AS A PERCENTAGE OF TOTAL RISKBEARING ASSETS AND ADHERE TO INTERNATIONAL ACCOUNTING NORMS AND WHILE MOST OF THE NEW BANKS INTEND TO CONCENTRATE ON RELATIVELY HIGHPROFIT AREAS SUCH AS FOREIGNEXCHANGE TRADING MERCHANT BANKING AND FEEBASED SERVICES LIKE LOAN SYNDICATIONS THE RESERVE BANK INSISTS THAT THEY ESTABLISH LARGE CHUNKS OF THEIR BUSINESS OUTSIDE MAJOR COMMERCIAL CENTERS TO MEET THE REQUIREMENT THAT THEY SET UP THEIR REGISTERED OFFICES IN CITIES AND TOWNS WHERE NO BANKS ARE CURRENTLY REGISTERED MOST OF THE NEW BANKS ARE BASING THEMSELVES IN SATELLITE TOWNS CLOSE TO BIG CITIES THE BANKS ALSO WILL BE REQUIRED TO DIRECT PART OF THEIR LENDING TO SOCALLED PRIORITY SECTORS SUCH AS AGRICULTURE AND SMALLSCALE INDUSTRY NATIONALIZED BANKS HAVE FOUND SUCH LENDING A DRAIN ON THEIR PROFITS LARGELY BECAUSE THEY HAVE BEEN COMPELLED FOR POLITICAL REASONS TO MAKE SOME LOANS OF DUBIOUS QUALITY BUT THE NEW BANKS THINK THEY CAN COPE THERE'S A LOT OF SMALLSCALE ESPECIALLY EXPORTORIENTED INDUSTRY WHICH IS GROWING FAST SAYS MR SHAH OF UTI BANK THEN WE'LL GO FOR PLANTATIONS AGROPROCESSING AND SELFEMPLOYED PEOPLE WHO'VE DONE WELL ADDS MR MAIYA OF ICICI BANK WE'LL AIM AT QUALITY LENDING WHEREVER WE ARE INCLUDING THE RURAL AREAS OUR AIM IS TO COORDINATE FINANCIAL SERVICES WITH INCREASED PRODUCTION AND PRODUCTIVITY THE BANK PLANS TO HAVE 60 BRANCHES NATIONWIDE WITHIN THREE YEARS MANY OF THE NEW BANKS EXPECT THEIR LINKS TO POWERFUL BACKERS WILL HELP THEM BUILD THEIR BUSINESSES EXECUTIVES AT ICICI BANK FOR INSTANCE BELIEVE THAT THEIR BANK HAS A NATURAL CLIENT BASE AMONG THE NEARLY 4000 LONGTERM CORPORATE BORROWERS OF ICICI LTD THE BOMBAY INVESTMENT BANK BACKING IT LIKEWISE MR SHAH SAYS UTI BANK SHOULD HAVE LITTLE TROUBLE LURING CLIENTS SINCE ITS BACKER UNIT TRUST OF INDIA HAS LENT ABOUT 100 BILLION RUPEES OF LONGTERM INVESTMENT FUNDS TO INDIAN COMPANIES THROUGH STATEOWNED BANKS UTI BANK ALSO PLANS TO OFFER RETAIL BANKING SERVICES TO POTENTIAL CLIENTS AMONG THE MILLIONS OF INVESTORS IN MUTUAL FUNDS MANAGED BY UNIT TRUST OF INDIA MEANWHILE INDIA'S PUBLICSECTOR BANKS MOST OF THEM OPERATING IN THE RED AND RECEIVING GOVERNMENT AID TO BOLSTER THEIR CAPITAL APPEAR TOO PREOCCUPIED WITH THEIR OWN PROBLEMS TO WORRY ABOUT PRIVATESECTOR ENCROACHMENTS HOWEVER LABOR UNIONS AT THE PUBLICSECTOR BANKS FEARFUL THAT INCREASED COMPETITION COULD COST JOBS DON'T WELCOME THE NEWCOMERS OUR FEELING IS THAT PRIVATESECTOR BANKING DID NOTHING TO INSPIRE THE ECONOMY BEFORE NATIONALIZATION SAYS DP CHADHA PRESIDENT OF THE ALL INDIA BANK EMPLOYEES ASSOCIATION THE BELIEF THAT PRIVATESECTOR BANKS WILL BE MORE SOLID NOW ISN'T VALID TRUE PRIVATE BANKS BEFORE NATIONALIZATION WERE CONSERVATIVELY RUN AND FAILED TO PROVIDE ADEQUATE BANKING SERVICES PARTICULARLY OUTSIDE MAJOR CITIES BUT CONDITIONS HAVE CHANGED SINCE THEN IN ADDITION TO REDUCING BUREAUCRATIC INTERFERENCE IN BUSINESS REFORM HAS ENCOURAGED COMPETITION AND THE PLAY OF MARKET FORCES AND THE UNIONS THOUGH POWERFUL IN THE PUBLICSECTOR KNOW THEY'RE IN NO POSITION TO INFLUENCE THE FATE OF THE NEW BANKS 9403180017 940318 CORRECTIONS & AMPLIFICATIONS CITIZENS INC SAID IT EARNED 809000 OR FIVE CENTS A SHARE FOR THE FOURTH QUARTER OF 1992 AFTER A CHARGE OF 23000 OR ONE CENT A SHARE FOR AN ACCOUNTING CHANGE THE COMPANY REVISED THE FIGURES IT HAD SUPPLIED FOR AN ARTICLE TUESDAY AFTER CONSULTING WITH ITS ACCOUNTANTS ON HOW TO BOOK THE ACCOUNTING CHANGE ISRAEL SOLD 116 BILLION OF ZEROCOUPON NOTES IN 24 PARTS AS PART OF A LARGER BOND OFFERING WITH YIELDS BETWEEN 738 AND 762 WEDNESDAY'S CREDIT MARKETS AND NEW SECURITIES ISSUES COLUMNS INCORRECTLY SAID THE NOTES YIELDED BETWEEN 1144 AND 2523 GUINNESS PLC STOCK HELD BY A TWEEDY BROWNE FUND AMOUNTS TO ABOUT 2 OF A 284 MILLION PORTFOLIO YESTERDAY'S HEARD ON THE STREET COLUMN INCORRECTLY SAID TWEEDY BROWNE HAD INVESTED ABOUT 284 MILLION IN GUINNESS 9403180016 940318 BUSINESS BRIEF LENNAR CORP COMPANY TO BUY REAL ESTATE WITH A MORGAN STANLEY FUND LENNAR CORP MIAMI IN PARTNERSHIP WITH MORGAN STANLEY REAL ESTATE FUND LP SAID IT AGREED TO ACQUIRE AT A DISCOUNT A PORTFOLIO OF REALESTATE ASSETS CURRENTLY VALUED AT 282 MILLION THE ASSETS TO BE PURCHASED FROM LINCOLN NATIONAL LIFE INSURANCE CO COMPRISE 46 PERFORMING AND NONPERFORMING LOANS AND PROPERTIES THE LOANS ARE SECURED BY PROPERTIES INCLUDING SHOPPING CENTERS APARTMENTS OFFICES AND HOTELS LOCATED THROUGHOUT THE COUNTRY TERMS OF THE DEAL WEREN'T DISCLOSED SEPARATELY A PALM HARBOR FLA COUPLE FILED A CLASSACTION SUIT AGAINST LENNAR CHARGING THE REALESTATE DEVELOPER WITH FAILING TO MEET WINDCODE STANDARDS IN THE CONSTRUCTION OF ABOUT 80 TOWNHOMES AND OTHER PROPERTIES THE SUIT WAS FILED IN STATE CIRCUIT COURT IN ST PETERSBURG FLA ALLAN J PEKOR VICE PRESIDENT FINANCE SAID LENNAR HADN'T YET REVIEWED THE CASE HE SAID THE COMPANY TAKES SERIOUSLY ANY ISSUE THAT AFFECTS OUR HOMEOWNERS IN THE WAKE OF HURRICANE ANDREW IN FLORIDA INSURERS FOR LENNAR PAID 24 MILLION TO SETTLE A DISPUTE WITH HOMEOWNERS ABOUT CONSTRUCTION STANDARDS IN LENNAR HOMES 9403180015 940318 REBOUND IN REITS ENABLES DEVELOPERS TO TAKE FIRMS PUBLIC BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL THE MARKET FOR STOCK IN REALESTATE INVESTMENT TRUSTS HAS BOUNCED BACK FROM A YEAREND SLUMP RESCUING A NUMBER OF PRIVATE DEVELOPERS WHO HAD BEEN FORCED TO POSTPONE PLANS TO TAKE THEIR COMPANIES PUBLIC FOR THE WEEK ENDED MARCH 2 INVESTORS POURED 113 MILLION INTO THE SEVEN REALESTATE MUTUAL FUNDS TRACKED BY AMG DATA SERVICES MORE THAN DOUBLE THE HIGHEST PREVIOUS WEEKLY INVESTMENT IN THE TWO YEARS THE FIRM HAS BEEN TRACKING IT I'VE BEEN BURIED IN CASH SAID BARRY GREENFIELD WHOSE 550 MILLION FIDELITY REAL ESTATE FUND TOOK IN 100 MILLION FOR THE TWO WEEKS ENDED MARCH 2 BEFORE LEVELING OFF THE FOLLOWING WEEK IN ORDER TO INVEST THE AVALANCHE OF NEW MONEY WITHOUT DRIVING UP THE PRICE OF SPECIFIC STOCKS HE SAID HE BOUGHT INTO MORE COMPANIES THAN HE MIGHT OTHERWISE HAVE DONE MR GREENFIELD'S FUND NOTCHED A 575 RETURN FOR THE FIRST TWO MONTHS OF 1994 THE HIGHEST OF ALL FIDELITY'S DOMESTIC EQUITY FUNDS AFTER FALLING 06 IN DECEMBER PRICES OF EQUITY REITS JUMPED 23 IN JANUARY AND 39 IN FEBRUARY ANALYSTS ATTRIBUTE THE YEAREND SLUMP TO THE ATTEMPT BY WALL STREET UNDERWRITERS IN DECEMBER TO MARKET MORE THAN 3 BILLION OF REIT SHARES IN INITIAL PUBLIC OFFERINGS AT YEAR END FACED WITH THE GLUT OF NEW OFFERINGS SHOPPINGCENTER DEVELOPERS MACERICH CO OF LOS ANGELES GLIMCHER REALTY TRUST OF COLUMBUS OHIO JP REALTY INC OF SALT LAKE CITY AND PRIME RETAIL INC OF BALTIMORE AS WELL AS YOUNGSTOWN OHIO MALL DEVELOPER DEBARTOLO REALTY CORP ALL POSTPONED THEIR IPOS CAPITAL APARTMENT PROPERTIES INC OF ROCKVILLE MD OPTED FOR A PRIVATE SALE TO APOLLO REAL ESTATE INVESTMENT FUND OF NEW YORK THIS YEAR HOWEVER JP REALTY GLIMCHER REALTY MACERICH AND PRIME ALL RETURNED TO THE MARKET AND WENT PUBLIC AND DEBARTOLO IS WIDELY EXPECTED TO FOLLOW SUIT SOON FUND MANAGERS AND REALESTATE ANALYSTS SAY THE ACTIVITY DEMONSTRATES THAT INVESTORS VIEW REALESTATE SECURITIES AS A GOOD HEDGE AGAINST THE INFLATION THAT SOME FEAR IS ON THE HORIZON WHEN THERE IS INFLATION REALESTATE COMPANIES CAN RAISE THEIR RENTAL RATES TO COMPENSATE IN ADDITION SAID SOME FUND MANAGERS AND ANALYSTS THE REIT MARKET'S RECOVERY DEBUNKS THE THEORY THAT RISING INTEREST RATES WOULD CAUSE SHARES OF REALESTATE INVESTMENT TRUSTS TO PLUNGE IN VALUE SOME REALESTATE EXPERTS ARGUED LAST YEAR THAT INVESTORS WERE SNAPPING UP SHARES IN NEW REIT OFFERINGS ONLY BECAUSE THE 7PLUS DIVIDEND YIELDS WERE BETTER THAN DIMINISHING YIELDS ON SUCH FIXEDRATE INVESTMENTS AS CERTIFICATES OF DEPOSIT AND GOVERNMENT BONDS IF RATES WERE TO RISE THEY CONTENDED REIT INVESTORS WOULD FLEE THE MARKET FOR MORESECURE CDS AND BONDS THE REIT MARKET'S PERFORMANCE THIS YEAR IN THE FACE OF RISING SHORTTERM AND LONGTERM INTEREST RATES IS THE FINAL NAIL IN THE COFFIN OF THE ARGUMENT THAT HIGH INTEREST RATES WOULD KILL REITS SAID JON FOSHEIM A REIT ANALYST WITH GREEN STREET ADVISORS WHO POINTED OUT THAT REITS ALSO DID WELL IN THE LATE 1970S AND EARLY 1980S WHEN INTEREST RATES WERE HIGH I'VE NEVER BELIEVED THAT REITS WERE INTERESTRATE SENSITIVE SAID MARTIN COHEN WHOSE 250 MILLION COHEN & STEERS REALTY SHARES INC MUTUAL FUND TOOK IN ABOUT 35 MILLION FOR THE WEEK ENDED MARCH 2 ACCORDING TO AMG I THINK THE WORLD FINALLY WOKE UP TO THE FACT THAT THEY AREN'T HE NOTED THAT THE ASSET VALUE OF HIS FUND ROSE EVERY DAY IN THE THREE WEEKS AFTER THE FEDERAL RESERVE RAISED THE FEDERAL FUNDS RATE THE RATE ON OVERNIGHT LOANS BETWEEN BANKS ON FEB 4 MR GREENFIELD EVEN MADE THE CONTRARY ARGUMENT IF INTEREST RATES GO UP THAT'S BULLISH FOR REITS HIGHER RATES HE MAINTAINED SIGNAL A GROWING ECONOMY WHICH WILL HELP DIMINISH THE EXCESS INVENTORY OF COMMERCIAL REAL ESTATE AND FINALLY CAUSE RENTS TO RISE THERE ARE NOW MORE THAN A DOZEN NEW REITS IN REGISTRATION FOR IPOS AND MANY MORE SAID TO BE IN THE PIPELINES OF INVESTMENT BANKS NEVERTHELESS LAST FALL'S SLUMP LEAVES MARKET EXPERTS DOUBTFUL THAT THERE WILL BE A REPEAT OF LAST YEAR'S FRENZY OF NEW OFFERINGS THE NEXT WAVE ISN'T GOING TO BE AS OVERHEATED AND CRAZY AS IN 1993 SAID MR GREENFIELD 9403180014 940303 LETTERS TO THE EDITOR A DIATRIBE OF INTOLERANCE AS CIVIC AND RELIGIOUS LEADERS DEDICATED TO ENDING INTOLERANCE AND DISCRIMINATION IN OUR SOCIETY WE ARE RESPONDING TO THE FEB 24 EDITORIALPAGE ARTICLE MORALITY AND HOMOSEXUALITY AND TO THE JUSTIFICATIONS FOR UNEQUAL TREATMENT OFFERED BY THE AUTHORS A GROUP OF CHRISTIAN AND JEWISH SCHOLARS CALLED THE RAMSEY COLLOQUIUM THE AUTHORS ARE SETTING OUT TO DO FAR MORE THAN MERELY EXPLAIN THE LARGELY INTUITIVE AND PREARTICULATE ANXIETY OF MOST AMERICANS TOWARD GAYS INDEED RATHER THAN SERVING AS DISPASSIONATE CHANNELS FOR THE EXPRESSION OF POPULAR DISCOMFORT THE AUTHORS BY ALLUSIONS TO THE VULNERABILITIES OF THE YOUNG AND THE PERIL OF PREDATORY BEHAVIOR INVOKE THE VICIOUS AND PATENTLY FALLACIOUS STEREOTYPE OF GAYS AS CHILD MOLESTERS AND FAN THE FLAMES OF INTOLERANCE CLEARLY TRAFFICKING IN SUCH STEREOTYPES HOWEVER CONTEMPTIBLE AND INACCURATE RENDERS THEIR CONCLUSION THAT CERTAIN DISCRIMINATIONS ARE IN FACT NECESSARY WITHIN SOCIETY MORE PALATABLE BUT IT IS PRECISELY FROM SUCH STEREOTYPES THAT MUCH OF THE AUTHORS' ARGUMENT IN THIS CASE REALLY DEVOLVES WHILE SUGGESTING HOW DEHUMANIZING IT IS THAT GAYS AND LESBIANS HAVE CHOSEN TO DEFINE THEMSELVES BY THEIR DESIRES ALONE THE AUTHORS REFLECT THE SAME FIXATION WITH SEXUALITY THAT THEY PURPORT TO CONDEMN THEY RENOUNCE THE GAY AND LESBIAN POLITICAL MOVEMENT AS A FUNDAMENTALLY SELFISH AND SEXUAL QUEST FOR LIBERATION FROM CONSTRAINT AND FOR THE BODILY FULFILLMENT OF DESIRE CONTRARY TO THE AUTHORS' INSINUATION THE GAYRIGHTS AGENDA IS REALLY NOT THE DESTRUCTION OF FRAGILE INSTITUTIONS SUCH AS MARRIAGE OR THE ELEVATION OF HOMOSEXUALITY TO MORAL EQUIVALENT UNFORTUNATELY FOR POLITICAL FIGURES OF THE SECULAR AND RELIGIOUS RIGHT ALIKE ARGUMENTS ABOUT MORAL EQUIVALENCY HAVE BECOME A RHETORICAL DISGUISE FOR RANK INTOLERANCE AND DISCRIMINATION INSTEAD THE PUSH FOR EQUALITY ON THE BASIS OF SEXUAL ORIENTATION IS A QUEST TO ENRICH SOCIAL INSTITUTIONS BY ENDING THE CORROSIVE EFFECT THAT INTOLERANCE AND DISCRIMINATION HAVE UPON THEM ALLOWING PREVIOUSLY EXCLUDED GROUPS EQUAL ACCESS TO THE ENJOYMENT OF CERTAIN INSTITUTIONS THE WORKPLACE THE HOME AND YES OUR FAMILIES TOO DOES NOT WEAKEN ANY INSTITUTION BUT RATHER REAFFIRMS ITS ATTRACTIVENESS AND ITS CLAIM TO MORAL LEGITIMACY FINALLY WE DISAGREE WITH THE AUTHORS THAT GREATER RECOGNITION AND LEGAL PROTECTION FOR GAYS AND LESBIANS HAS ALREADY OR WILL CAUSE DAMAGE TO OUR COMMON LIFE IT IS ONLY FOR THOSE WITH A DIRECT STAKE IN THE PERPETUATION OF BIGOTRY THAT THE ERADICATION OF INJUSTICE CAN BE CONSTRUED TO CAUSE DAMAGE THE LETTER WAS ALSO SIGNED BY 12 OTHER MEN AND WOMEN IT'S REFRESHING TO READ AN ANTIGAY PIECE THAT OPENLY CALLS FOR DISCRIMINATION INSTEAD OF TRYING TO HIDE BEHIND A MENDACIOUS CLAIM OF OPPOSING SPECIAL RIGHTS BUT THE RAMSEY COLLOQUIUM'S ARTICLE USES A LOT OF SPACE JUST TO SAY IT'S BAD BECAUSE IT'S BAD BECAUSE IT'S BAD WHICH MAY BE MORE HONEST BUT IS NO MORE ILLUMINATING THEY CLAIM GAY RELATIONSHIPS DESTROY THE INSTITUTION OF MARRIAGE ARE THEY SERIOUSLY THINKING THAT HETEROSEXUALS WOULD TURN GAY IN DROVES GIVEN THE OPPORTUNITY IT'S TRUE THAT WHEN ONE PARTNER IN A HETEROSEXUAL MARRIAGE IS GAY THE MARRIAGE TENDS TO FAIL BUT THAT'S A TINY FRACTION OF ALL MARRIAGES WHAT DO THEY MEAN HERE THEY ALSO FEEL THAT DISCRIMINATION IS NECESSARY TO PROTECT CHILDREN BUT CHILD ABUSE BY OPENLY GAY PEOPLE IS ALMOST NONEXISTENT ABUSERS ARE EITHER HETEROSEXUAL OR PRETENDING TO BE SO MORE DISCRIMINATION AGAINST US IS UNLIKELY TO MAKE A DENT IN THAT PROBLEM WHAT EXACTLY IS THE GAY AGENDA THEY OPPOSE OUR RIGHT TO EXIST OUR RIGHT TO HAVE JOBS THE WRITERS STATE THAT SINCE THERE ARE GOOD REASONS TO SUPPORT THE HETEROSEXUAL NORM SINCE IT HAS BEEN DEVELOPED WITH GREAT DIFFICULTY AND SINCE IT CAN BE MAINTAINED ONLY IF IT IS CARED FOR AND SUPPORTED WE CANNOT BE INDIFFERENT TO ATTACKS UPON IT THE HETEROSEXUAL NORM MUST BE A FRAGILE CREATURE INDEED IF IT NEEDS ALL THIS CARETAKING BESIDES WHO'S ATTACKING IT SINCE WHEN IS MY REQUEST FOR RESPECT AND CIVIL RIGHTS AN ATTACK ON HETEROSEXUALS I AM OUTRAGED AT THE STATEMENT THAT PUBLIC ANXIETY ABOUT HOMOSEXUALITY IS PREEMINENTLY A CONCERN ABOUT HE VULNERABILITIES OF THE YOUNG AND THAT THIS IS A LEGITIMATE AND URGENT PUBLIC CONCERN STATISTICALLY SPEAKING THE VULNERABILITIES OF THE YOUNG ARE MORE APT TO BE TAKEN ADVANTAGE OF BY HETEROSEXUAL MEN WHO PREY ON BOTH YOUNG WOMEN AND YOUNG MEN FOR THE WRITERS TO IMPLY THAT PROGRAMS ADDRESSED TO SUPPORTING YOUNG PEOPLE IN THEIR OBVIOUSLY WELLFOUNDED ANXIETIES ABOUT THEIR SEXUAL IDENTITIES ARE A RUSE FOR PREDATORY BEHAVIOR BY HOMOSEXUALS IS INSULTING AND DEMEANS THE VERY REAL PAIN THAT OFTEN PUSHES YOUNG GAY AND LESBIAN PEOPLE TO ATTEMPT AND ALLTOOOFTEN SUCCEED AT SUICIDE THE HATRED AND INTOLERANCE THAT COME ACROSS IN THIS ARTICLE IS QUITE CLEAR TO THIS JEWISH LESBIAN MOTHER OH YES WE DO HAVE FAMILIES SOME OF OUR KIDS EVEN EAT RICE KRISPIES FOR BREAKFAST I HOPE YOUR READERS TAKE THIS FOR WHAT IT'S WORTH WHICH IN MY BOOK IS ABSOLUTELY NOTHING THE CHRISTIAN AND JEWISH SCHOLARS OF THE RAMSEY COLLOQUIUM ARE WRONG TO DESCRIBE AMERICAN ANXIETY ABOUT HOMOSEXUALITY AS INTUITIVE AND PREARTICULATE MUCH TO THE CONTRARY REASONED AND ARTICULATE RELIGIOUS TEACHING PRODUCES HOMOPHOBIA DISCRIMINATION AGAINST LESBIANS AND GAYS AND BISEXUALS DAMAGES INNUMERABLE INDIVIDUALS AND OUR COMMON LIFE GAYS ARE NO MORE IN NEED OF TOLERANCE COMPASSION OR AFFIRMATION THAN ANYONE ELSE EQUAL TREATMENT UNDER THE LAW IS NOT A THREAT TO THE HETEROSEXUAL NORM DID THE RAMSEY COLLOQUIUM BASE ITS DIATRIBE ON CLERGY WHO MOLEST LITTLE BOYS THEY COULDN'T POSSIBLY HAVE BEEN THINKING ABOUT THE MANY UPSTANDING GAY MEN AND WOMEN OF AMERICA WHO ALSO HAPPEN TO BE THE SONS DAUGHTERS BROTHERS SISTERS AND OTHER RELATIVES OF OUR LARGER NORMAL STRAIGHT SOCIETY SHAME ON YOU FOR IMPOSING YOUR IGNORANCE UNDER THE GUISE OF RELIGIOUS INSTRUCTION ON AN ALREADY DYSFUNCTIONAL SOCIETY WHERE IS TRUE RELIGIOUS GUIDANCE BASED ON LOVE AND COMPASSION WHEN WE NEED IT MOST WHILE THE AUTHORS ACKNOWLEDGE THE LONGSTANDING EXISTENCE OF HOMOSEXUALITY ACROSS CULTURES THEY CATEGORIZE GAYS AND LESBIANS AS PREDATORS WHOSE ACTIONS ARE DICTATED SOLELY BY PHYSICAL DESIRE THE AUTHORS CLING TO THE NOTION OF THE FRAGILITY OF THE TRADITIONAL FAMILY AND THAT IT WILL BE UPHELD BY DENYING DIFFERENCES IN SEXUAL ORIENTATION OR AT THE LEAST THROUGH SELFCONTROL OF SAMESEX DESIRES MANY RECENT ECONOMIC STUDIES INCLUDING NOBEL LAUREATE ECONOMIST GARY BECKER'S A TREATISE ON THE FAMILY HAVE ANALYZED THE DECLINE OF THE TRADITIONAL FAMILY AND HAVE IDENTIFIED TECHNOLOGICAL ADVANCEMENT HIGHER WAGES DECLINING BIRTH RATES HIGHER LEVELS OF EDUCATION AMONG WOMEN AND THE INCREASING ROLE OF WOMEN IN THE LABOR FORCE AS SIGNIFICANT FACTORS JUST AS THE MAJORITY OF HETEROSEXUALS ARE NOT PREDATORS OF THE YOUNG NEITHER ARE THE MAJORITY OF HOMOSEXUALS FURTHER MOST HOMOSEXUALS LIKE MOST HETEROSEXUALS SIMPLY SEEK THE OPPORTUNITY TO LIVE WITHOUT FEAR OF ECONOMIC SOCIETAL OR LEGAL PENALTIES IT IS CURIOUS INDEED THAT A COLLECTION OF SCHOLARS REPRESENTING SOME OF OUR BEST UNIVERSITIES HAVE FALLEN PREY TO STEREOTYPICAL FALLACIES IN CATEGORIZING GAYS AND LESBIANS PERHAPS EVEN MORE CURIOUS AND TELLING HOWEVER IS THE ABSENCE OF A FEMALE COAUTHOR IN THEIR BATTLE TO UPHOLD THE TRADITIONAL FAMILY THE AUTHORS SHIFT THE BURDEN OF PROOF TO ME I MUST JUSTIFY TO THEM TO SOCIETY MY SEXUAL BEHAVIOR SINCE I DO NOT ACCEPT THEIR DOCTRINE OF SIN I DO NOT ACCEPT THEIR BURDEN OF PROOF THEY ARE ENTITLED TO ADHERE TO ARCHAIC DOCTRINES REGARDING SEXUAL BEHAVIOR AMONG OTHER THINGS BUT IN A CIVIL SOCIETY THEY ARE NOT ENTITLED TO FORCE ME TO BEHAVE AS IF I ADHERE TO THEM I CANNOT HOLD MYSELF OR THE PUBLIC AWARENESS OF THE EXISTENCE OF HOMOSEXUAL BEHAVIOR ACCOUNTABLE FOR THE INCREASE IN DIVORCES AMONG HETEROSEXUALS SINCE GAY MARRIAGES ARE NOT RECOGNIZED OR ILLEGITIMATE BIRTHS PRESUMABLY ALSO AMONG HETEROSEXUALS THE SOURCE OF THE PROBLEM SEEMS TO BE THAT THE RELIGIOUS ESTABLISHMENT BELIEVES IT HAS A MONOPOLY ON MORALITY BOTH IN DISCOURSE AND CONDUCT BY DEFINING GOD IN THEIR OWN TERMS AND THEN INSISTING THAT THEY HAVE SPECIAL ACCESS TO GOD THEY ARROGATE INTO THEMSELVES THE PARENT ROLE FOR SOCIETY THE REST OF US ARE WAYWARD CHILDREN BADLY IN NEED OF THEIR KINDHEARTED AND WELLMEANING OF COURSE DIRECTION THE AUTHORS TROT OUT THE OLD WARHORSE OF INSINUATING THAT YOUNG PEOPLE NEED TO BE PROTECTED FROM HOMOSEXUALS I DO NOT RECALL ANYONE EVER PROTECTING ME FROM HETEROSEXUALS AND YET I GREW UP INTO A WELLEDUCATED HARDWORKING RESPONSIBLE QUEER MEMBER OF SOCIETY WHETHER IT'S IN MY GENES OR IN MY JEANS MY SEXUALITY IS AS MUCH SOMEBODY ELSE'S BUSINESS AS IS MY CHOICE OF TOOTHPASTE OR RELIGION FOR THAT MATTER SEE RELATED LETTER LETTERS TO THE EDITOR THE ASSAULT ON HETEROSEXUALITY WSJ MARCH 18 1994 9403030057 YY94 MM03 9403180013 940318 FINANCING BUSINESS BELLWETHER EXPLORATION CO BELLWETHER EXPLORATION CO HOUSTON SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL 3250000 COMMON SHARES OF THAT TOTAL 2250000 WOULD BE SOLD BY THE COMPANY AND 1000000 BY CERTAIN SHAREHOLDERS A BELLWETHER OFFICIAL SAID THE COMPANY WOULD HAVE ABOUT SIX MILLION COMMON SHARES OUTSTANDING AFTER A PENDING 1FOR8 REVERSE STOCK SPLIT AND THE OFFERING THE ENERGY COMPANY SAID IT WOULD USE PROCEEDS FROM THE OFFERING TO REPAY DEBT AND TO FUND POSSIBLE ACQUISITIONS MANAGING UNDERWRITER FOR THE OFFERING IS PRINCIPAL/EPPLER GUERIN & TURNER INC 9403180012 940318 ECONOMY HOUSE PANEL VOTES TO REDUCE PREMIUMS FOR SMALL FIRMS ON SOME HEALTH PLANS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE VOTED TO REDUCE WHAT DEMOCRATICBACKED HEALTH LEGISLATION WOULD REQUIRE MANY SMALL BUSINESSES TO PAY TO INSURE WORKERS WHO CURRENTLY ARE COVERED THROUGH SPOUSE OR FAMILY POLICIES THE ACTION CAME AS THE PANEL APPROVED A PREMIUM SCHEDULE THAT WILL HELP DICTATE HOW INSURANCE COSTS ARE ALLOCATED UNDER THE PLAN THE SCHEDULE WOULD APPLY DIRECTLY TO A PROPOSED MEDICARELIKE PROGRAM FOR SMALLBUSINESS EMPLOYEES AND LOWERWAGE WORKERS WHO CAN'T GET PRIVATE COVERAGE BUT IT ALSO WOULD DETERMINE HOW COMPANIES COMPENSATE ONE ANOTHER IN CASES SUCH AS THAT OF A TWOWORKER FAMILY THAT CHOOSES TO ENROLL IN ONE EMPLOYER'S PRIVATE HEALTH PLAN AND NOT THE OTHER'S AS INITIALLY DRAFTED THE BILL ANTICIPATED THAT EMPLOYERS WOULD HAVE TO PAY 80 OF ANNUAL PREMIUMS TOTALING 2500 PER WORKER REGARDLESS OF THE WORKER'S FAMILY SITUATION THE REVISED SCHEDULE WOULD SET A PREMIUM LEVEL OF 2000 FOR SINGLE WORKERS WITHOUT CHILDREN THAT LOWER PREMIUM ALSO WOULD BECOME THE STANDARD FOR WHAT COMPANIES WOULD HAVE TO PAY IF THEIR WORKERS ARE ENROLLED IN INSURANCE PLANS PAID THROUGH SPOUSES' EMPLOYERS THE ISSUE OF SPOUSES' COVERAGE CAN BE IMMENSELY SENSITIVE BOTH FOR SMALL COMPANIES WHICH RESENT REQUIREMENTS THE PROPOSED BILL WOULD IMPOSE ON THEM AND FOR BIG BUSINESSES WHICH BELIEVE THEY CURRENTLY BEAR MORE THAN THEIR SHARE OF THE NATION'S HEALTHINSURANCE BURDEN THOUGH THE DATA ARE IMPRECISE GOVERNMENT FIGURES INDICATE THAT ABOUT 20 OF THOSE WORKING FOR COMPANIES WITH 100 OR FEWER EMPLOYEES CURRENTLY ARE INSURED THROUGH FAMILY PLANS FINANCED BY RELATIVES' EMPLOYERS IN ABOUT TWOTHIRDS OF THE CASES THE RELATIVES WORK FOR COMPANIES THAT HAVE MORE THAN 100 EMPLOYEES REP FORTNEY PETE STARK D CALIF THE SUBCOMMITTEE CHAIRMAN OPPOSED THE CHANGE AND WARNED IT WOULD ADVERSELY AFFECT SOME SMALL EMPLOYERS BUT THE NET IMPACT WAS SEEN AS FAVORABLE TO MANY SMALL COMPANIES AND A BIPARTISAN COALITION LED BY REP GERALD KLECZKA D WIS PUSHED IT THROUGH THE PANEL ON A VOICE VOTE MR STARK HAD PROPOSED THE SINGLE 2500 PREMIUM FOR THE SAKE OF SIMPLICITY AND BECAUSE IT ADVANCED HIS BELIEF THAT THE COSTS OF HEALTH CARE FOR CHILDREN AS WITH PUBLIC EDUCATION SHOULD BE ABSORBED MORE GENERALLY BUT MR KLECZKA AND MANY REPUBLICANS ARGUED THAT THE SINGLE PREMIUM WOULD IMPOSE TOO HIGH A BURDEN ON SINGLE INDIVIDUALS OR COUPLES WITHOUT DEPENDENT CHILDREN AND THEIR ARGUMENTS DOVETAILED WITH A BROADER DESIRE BY DEMOCRATS TO FIND SOME MEANS TO REDUCE THE BURDEN OF HEALTH REFORM ON SMALL BUSINESS IN THE CASE OF THE NEW MEDICARELIKE PROGRAM ALL COMPANIES WITH ENROLLED WORKERS WOULD PAY THE GOVERNMENT 80 OF THE FOLLOWING PREMIUMS 2000 FOR SINGLE INDIVIDUALS 4000 FOR COUPLES WITHOUT CHILDREN 4150 FOR SINGLE PARENTS AND 6075 FOR FAMILIES WITH CHILDREN WORKERS WOULD BE RESPONSIBLE FOR THE BALANCE UNDER THE REVISED PREMIUM SCHEDULE LOWERWAGE FAMILIES WITH CHILDREN WOULD HAVE TO PAY MORE THAN THE ORIGINAL BILL WOULD REQUIRE YESTERDAY'S DEBATE ILLUSTRATES A DEEPER DIVISION IN BOTH PARTIES OVER HOW TO ALLOCATE COSTS AND INSURANCE RISKS BOTH THE CLINTON ADMINISTRATION'S HEALTH PLAN AND THE ALTERNATIVE BILL WOULD MOVE TOWARD A COMMUNITYRATING SYSTEM THAT WOULD SPREAD THE COST OF INSURANCE MORE BROADLY BUT THE RESULT WOULD BE TO INCREASE COSTS SUBSTANTIALLY FOR YOUNGER WORKERS WHO REPRESENT LESS OF A RISK FOR INSURANCE COMPANIES TODAY TO MAINTAIN A SUFFICIENTLY LARGE POOL TO SPREAD RISKS BROADLY LIMITS MUST BE SET ON THE ABILITY OF COMPANIES TO OPT OUT OF THE SYSTEM BY INSURING THEIR EMPLOYEES THEMSELVES BUT THERE'S DISAGREEMENT OVER WHERE TO DRAW THE LINE THE ADMINISTRATION WOULD PERMIT ONLY THE VERY LARGEST COMPANIES THOSE WITH MORE THAN 5000 WORKERS TO OPT OUT THE DEMOCRATICBACKED ALTERNATIVE WOULD ALLOW THOSE WITH MORE THAN 1000 WORKERS MODERATE DEMOCRATS YESTERDAY APPEARED WILLING TO COME DOWN STILL FURTHER BUT BY A 74 MARGIN THE PANEL REJECTED A GOP EFFORT TO SET THE LEVEL AT 100 WORKERS THE SAME PARTISAN SPLIT RECURRED IN A FIGHT OVER THE COMMUNITYRATING SYSTEM BY A 74 VOTE THE PANEL KILLED A REPUBLICAN PROPOSAL TO ALLOW DIFFERENT RATES ACCORDING TO THREE AGE GROUPS ALSO YESTERDAY THE SUBCOMMITTEE AGREED TO RECONSIDER NEXT WEEK A PROPOSAL WHICH IT HAD TABLED EARLIER TO RAISE CIGARETTE TAXES TO 2 A PACK THAT INCREASE WHICH WOULD FINANCE SUBSIDIES FOR SMALL EMPLOYERS WOULD BE TWICE WHAT THE PRESIDENT HAS SOUGHT AND EIGHT TIMES THE CURRENT LEVY OF ABOUT 24 CENTS A PACK IT HAS SET OFF INTENSE LOBBYING BY THE TOBACCO INDUSTRY WHILE A MAJORITY ON THE PANEL APPEARS WILLING TO GO BEYOND THE PRESIDENT'S PROPOSAL REP NANCY JOHNSON R CONN SAID YESTERDAY THAT THE 2 A PACK TAX WHICH SHE HAD SUPPORTED EARLIER THIS WEEK WAS TOO HIGH FOR HER IN OTHER ACTION THE SUBCOMMITTEE GAVE BIPARTISAN SUPPORT TO A LITTLENOTICED BUT FARREACHING AMENDMENT BY REP JOHN LEWIS D GA SEEKING TO END DISCRIMINATION IN HOW HEALTH PLANS CONTRACT WITH PHYSICIANS TO PROVIDE CARE THE PROVISION WOULD REQUIRE PLANS TO OFFER CONTRACTS TO SOCALLED ESSENTIAL COMMUNITY PROVIDERS INCLUDING CLINICS AND PHYSICIANS WHO PROVIDE AT LEAST 20 HOURS OF CARE A WEEK IN RURAL OR INNERCITY AREAS WHERE HEALTH SERVICES ARE LIMITED 9403180011 940318 SENATE BUDGET PANEL VOTES ADDED CUTS OF 26 BILLION FROM CLINTON'S PROPOSAL BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A SURPRISE SETBACK FOR THE WHITE HOUSE AND DEMOCRATIC LEADERS THE SENATE BUDGET COMMITTEE VOTED TO REQUIRE ANOTHER 26 BILLION IN SPENDING CUTS FROM PRESIDENT CLINTON'S FIVEYEAR BUDGET PLAN THE ADDITIONAL CUTS ADOPTED ON A BIPARTISAN 138 VOTE WOULD PLACE SEVERE PRESSURE ON THE CLINTON ADMINISTRATION'S INVESTMENT SPENDING INITIATIVES IF THEY SURVIVE WHEN THE FULL SENATE CONSIDERS THE BUDGET RESOLUTION NEXT WEEK ALREADY LAWMAKERS FACE TOUGH CHOICES ON SPENDING MERELY TO MEET THE TARGETS SET IN LAST YEAR'S DEFICITREDUCTION PROGRAM WITH DEFICITS SHRINKING AS A RESULT OF THAT PROGRAM AND THE RECOVERING ECONOMY JAMES SASSER D TENN CHAIRMAN OF THE BUDGET COMMITTEE HAD ARGUED AGAINST SEEKING ANY NEW CUTS BUT SEN CHARLES GRASSLEY R IOWA WHO PROPOSED THE ADDITIONAL BUT UNSPECIFIED REDUCTIONS ALONG WITH SEN JAMES EXON D NEB SAID THEY WERE NECESSARY IN LIGHT OF PROJECTIONS SHOWING THE DEFICIT GROWING AGAIN DUE TO SPIRALING HEALTH COSTS NEAR THE END OF THE DECADE WE OUGHT TO BE TACKLING THE OUTYEAR BUDGET DEFICITS NOW WHEN WE DON'T HAVE PRESSURE ON US MR GRASSLEY SAID OF FUTURE YEARS IN ADDITION TO ALL COMMITTEE REPUBLICANS THAT ARGUMENT DREW VOTES FROM MR EXON AND THREE OTHER DEMOCRATS KENT CONRAD OF NORTH DAKOTA FRANK LAUTENBERG OF NEW JERSEY AND PAUL SIMON OF ILLINOIS EARLIER THE COMMITTEE REJECTED A SERIES OF AMENDMENTS INCLUDING A REPUBLICAN ALTERNATIVE BUDGET OFFERED BY SEN PETE DOMENICI OF NEW MEXICO THE GOP PLAN WOULD OFFER FAMILIES A NEW 500PERCHILD TAX CREDIT WHILE STILL CALLING FOR AN ADDITIONAL 318 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS LARGELY THROUGH CUTS IN MEDICARE MEDICAID AND WELFARE MR GRASSLEY EVENTUALLY JOINED COMMITTEE DEMOCRATS IN VOTING TO SEND MR CLINTON'S 15 TRILLION SPENDING PLAN FOR FISCAL 1995 TO THE SENATE FLOOR THE COMMITTEE'S VERSION OF THE BUDGET WHICH LIKE THE ADMINISTRATION'S DOESN'T CALL FOR ANY NEW TAXES ENVISIONS A 1995 DEFICIT OF 174 BILLION STUNG BY HIS OWN PARTY'S DEFECTIONS MR SASSER SAID LATER THAT THE ADDITIONAL SPENDING REDUCTIONS HAD A 5050 CHANCE OF SURVIVING ON THE FLOOR WHEN COLLEAGUES FACE THE TENDER MERCIES OF ROBERT BYRD D WVA CHAIRMAN OF THE APPROPRIATIONS COMMITTEE MR BYRD WHO WOULD OVERSEE THE TASK OF TURNING THE GENERAL EXONGRASSLEY PROPOSAL INTO SPECIFIC CUTS HAS WARNED THAT MOST OF THE BURDEN WOULD FALL ON THE PENTAGON HE ALSO HAS THE POWER TO PUNISH SENATORS BY CUTTING THEIR PET DOMESTIC PROGRAMS THE TOUGHEST CHOICES WOULDN'T COME IMMEDIATELY BECAUSE THE EXONGRASSLEY PROPOSAL WOULD CUT SPENDING BY ONLY 16 BILLION IN FISCAL 1995 WHICH BEGINS OCT 1 BUT ROBERT GREENSTEIN OF THE LIBERAL CENTER ON BUDGET AND POLICY PRIORITIES PREDICTED THE PROPOSAL WOULD CRIPPLE THE ADMINISTRATION'S PLANS TO STRENGTHEN LONGTERM ECONOMIC GROWTH THROUGH EXPANDED EDUCATION JOBTRAINING INFRASTRUCTURE AND RESEARCH PROGRAMS WE'RE VERY CONCERNED ABOUT THE ADDITIONAL CUTS SAID BARRY TOIV A SPOKESMAN FOR THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET MR TOIV CITED THE POTENTIAL IMPACT ON THE DEFENSE BUDGET BUT MR GRASSLEY DISMISSED SUCH WARNING AS SCARE TACTICS TO PRESSURE REPUBLICANS AND SAID WHITE HOUSE INVESTMENTS WOULD BE SCALED BACK THE ADMINISTRATION'S PROPOSED INVESTMENTS AMOUNT TO ABOUT 8 BILLION IN FISCAL 1995 AND ROUGHLY 90 BILLION OVER FIVE YEARS CUTS PASSED LAST YEAR ALREADY HAVE TOUCHED OFF INTENSE JOCKEYING FOR FUNDS BETWEEN ADMINISTRATION PROPOSALS AND EXISTING PROGRAMS FAVORED BY CONGRESSIONAL DEMOCRATS FOR EXAMPLE THE ADMINISTRATION'S PROPOSED BOOST IN HEAD START FUNDING FOR PRESCHOOL CHILDREN IS COMPETING FOR MONEY WITH LOWINCOME ENERGY ASSISTANCE WHICH DEMOCRATIC LIBERALS WANT TO PROTECT AND FINANCING FOR THE EDUCATION DEPARTMENT'S GOALS 2000 PROGRAM LARGELY HINGES ON CUTS IN FEDERAL IMPACT AID TO DISTRICTS WITH MILITARY BASES A PROGRAM WITH POWERFUL DEFENDERS THE SURPRISING SENATE COMMITTEE ACTION CAME AS THE CLINTON ADMINISTRATION SCORED A VICTORY IN THE HOUSE REFLECTING A DIMINISHED SENSE OF URGENCY ABOUT THE DEFICIT HOUSE MEMBERS ECHOED AN EARLIER SENATE VOTE IN KILLING FOR THIS YEAR A PROPOSED CONSTITUTIONAL AMENDMENT REQUIRING A BALANCED BUDGET THE AMENDMENT FELL ON 271153 VOTE 12 SHORT OF THE TWOTHIRDS REQUIRED TO PASS A CONSTITUTIONAL AMENDMENT ALL REPUBLICANS BUT ONE SUPPORTED THE AMENDMENT BUT A MAJORITY OF DEMOCRATS FACING PRESSURE FROM THEIR PARTY LEADERS AND THE WHITE HOUSE OPPOSED THE MEASURE POLITICS AS USUAL ARE ALIVE AND WELL IN THIS BODY COMPLAINED REP BOB SMITH R ORE WHO COSPONSORED THE AMENDMENT WITH REP CHARLES STENHOLM D TEXAS 9403180010 940318 STEINHARDT SWEETENS AMERICA WEST OFFER FUELING BIDDING WAR AN INVESTMENT GROUP LED BY NEW YORK MONEY MANAGER MICHAEL STEINHARDT SWEETENED ITS OFFER TO BUY AMERICA WEST AIRLINES ESCALATING THE BIDDING WAR BETWEEN IT AND A GROUP THAT INCLUDES CONTINENTAL AIRLINES MR STEINHARDT'S REVISED BID FOR AMERICA WEST WHICH HAS BEEN OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION FOR 2 1/2 YEARS INCREASES THE VALUE OF THE OFFER TO 220 MILLION FROM 200 MILLION THAT BID EQUALS THE VALUE OF THE OFFER FROM THE INVESTMENT GROUP LED BY DAVID BONDERMAN AND JAMES COULTER FORT WORTH TEXAS INVESTORS WHO ARE MAJOR SHAREHOLDERS IN CONTINENTAL CONTINENTAL IS ALSO A PARTNER IN THE BONDERMANLED BID BY REVISING HIS OFFER MR STEINHARDT WHO LEADS A GROUP CALLED AWA INVESTOR GROUP IS SEEKING TO APPLY PRESSURE TO AMERICA WEST'S BOARD WHICH FAVORS THE BONDERMANLED BID THE REVISED BID COULD ALSO BECOME PART OF THE BATTLE FOR THE COMPANY IN BANKRUPTCYLAW COURT THAT'S BECAUSE THE UNSECURED CREDITOR COMMITTEE SUPPORTS MR STEINHARDT UNDER TERMS OF THE NEW PROPOSAL MR STEINHARDT'S GROUP WOULD PURCHASE 335 OF THE PHOENIX AIRLINE'S COMMON STOCK FOR 1157 A SHARE OR 155 MILLION IT WOULD PURCHASE THE CARRIER'S DEBT SECURITIES FOR 65 MILLION AND OBTAIN WARRANTS TO BUY AN ADDITIONAL 9 OF THE FULLY DILUTED COMMON STOCK AT 15 A SHARE MR STEINHARDT WOULD ALSO OFFER CURRENT EQUITY HOLDERS 4 OF THE NEW COMMON STOCK A SPOKESMAN FOR MR BONDERMAN SAID HE HADN'T SEEN THE REVISED BID BUT SAID MR BONDERMAN'S PROPOSED ALLIANCE BETWEEN CONTINENTAL AND AMERICA WEST INCLUDING JOINT FREQUENTFLIER PROGRAMS AND MARKETING EFFORTS GIVES THE BONDERMANLED BID THE UPPER HAND AMERICA WEST CHAIRMAN WILLIAM A FRANKE SAID HE COULDN'T COMMENT ON THE REVISED BID UNTIL HE HAD A CHANCE TO READ IT 9403180009 940318 MEDIA A CONTROVERSIAL WASHINGTON NEWSPAPER SCOOPS ITS LOFTIER RIVALS ON WHITEWATER BY PAULETTE THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL WHEN RADIO STATIONS NATIONWIDE WANT A SAVVY COMMENTATOR ON THE WHITEWATER MESS THEY CALL UP THE NEWSPAPER WITH THE INSIDE TRACK THE WASHINGTON TIMES THE SCRAPPY 12YEAROLD BROADSHEET DWARFED IN INFLUENCE PRESTIGE AND CIRCULATION BY THE WASHINGTON POST IS BREAKING STORIES THAT HAVE HELPED PROPEL WHITEWATER INTO A FULLFLEDGED WASHINGTON SCANDAL THOUGH IT WAS THE NEW YORK TIMES THAT FIRST RAISED QUESTIONS ABOUT THE ISSUE IN MARCH 1992 PEGGED AS ULTRARIGHTWING AND ASSOCIATED WITH THE VIEWS OF ITS OWNER THE REV SUN MYUNG MOON'S UNIFICATION CHURCH THE TIMES IS RELISHING ITS LEAD ON ONE OF THE TOP STORIES OF THE DAY ITS WHITEWATER SCOOPS INCLUDE THE DISCLOSURE OF HILLARY RODHAM CLINTON'S LETTER REQUESTING POWER OF ATTORNEY ON WHITEWATER THE REMOVAL OF FILES FROM THE OFFICE OF WHITE HOUSE LAWYER VINCENT FOSTER AND THE SHREDDING OF DOCUMENTS AT THE ROSE LAW FIRM ALL THESE STORIES WERE REPORTED BY JERRY SEPER WHO WRITES MANY OF THE PAPER'S MORE CONTROVERSIAL ARTICLES WHITEWATER HAS PERHAPS GIVEN THIS COMPANY THE SAME MORALE BOOST THAT WATERGATE GAVE THE POST A FEW YEARS BACK SAYS RONALD GODWIN SENIOR VICE PRESIDENT OF THE WASHINGTON TIMES ADVERTISING AND CIRCULATION ARE UP THOUGH HE CREDITS THE IMPROVING ECONOMY AS MUCH AS THE SCANDAL COVERAGE WITH THE BOOST COMES A NEW RESPECTABILITY IT'S BECOME IMPOSSIBLE TO HAVE AN INFORMED DISCUSSION OF WHITEWATER WITH ANYONE WHO'S NOT READING THE WASHINGTON TIMES THE VILLAGE VOICE SAID RECENTLY THE GUARDIAN OF LONDON ASSERTED THAT THE PAPER IS WINNING THE EXPOSE RACE SO FAR AT THE SAME TIME THE TIMES' WHITEWATER COVERAGE TROUBLES SOME OBSERVERS WHO CITE TOO MANY UNNAMED SOURCES AND HYPED HEADLINES AND THE SHREDDING STORY SOME POINT OUT NEVER MENTIONED THAT LAW FIRMS OFTEN SHRED DOCUMENTS THEY HAVE BROKEN SOME ASPECTS OF WHITEWATER THOUGH ALMOST ALWAYS OVERPLAYING THEM SAYS LARRY SABATO A PROFESSOR OF GOVERNMENT AT THE UNIVERSITY OF VIRGINIA THEY HAVE ALSO PUSHED SOME OF THE WACKIEST THEORIES THE PAPER ALSO COMBINES CONSERVATIVE POLITICS WITH NEWS JUDGMENT MORE AKIN TO THE TABLOIDS REFERENCES TO PRESIDENTIAL PHILANDERING PEPPER ITS PAGES THIS WEEK FOR INSTANCE IN A POLITICAL CARTOON POKING FUN AT THE RESIGNATION OF WEBSTER HUBBELL A BRASSIERE HANGS FROM MR CLINTON'S SUIT POCKET AND IN A COLUMN LAST WEEK WESLEY PRUDEN THE EDITOR IN CHIEF NOTED HOW PRESIDENT CLINTON CLAMPED DOWN ON HIS LOWER LIP DURING A SPEECH AND ADDED AS ANY NUMBER OF LADIES PAST MIGHT SAY HOW COULD YOU RESIST MR PRUDEN DEFENDS SUCH COVERAGE SAYING THAT THE PRESIDENT IS A PUBLIC FIGURE WHO IS EXHIBITING TABLOID BEHAVIOR MOREOVER HE ADDS THE TIMES IS AN EQUAL OPPORTUNITY NEEDLER WHEN RUMORS SURFACED TWO YEARS AGO ABOUT PRESIDENT BUSH'S ALLEGED EXTRAMARITAL AFFAIR EVERYBODY IN TOWN WAS TALKING ABOUT IT AND EVERYBODY IGNORED IT HE NOTES EXCEPT US THE MORALE BOOST COMES AT A WELCOME TIME FOR THE PAPER MR GODWIN DOESN'T DISPUTE REPORTS THAT THE UNIFICATION CHURCH HAS LOST MUCH OF THE REPORTED 500 MILLION TO 1 BILLION IT HAS INVESTED IN THE PAPER OVER THE LAST 12 YEARS BUT TIMES OFFICIALS DECLINE TO SAY WHAT THE PAPER'S CULMULATIVE LOSSES HAVE BEEN TO SAVE 20 MILLION OVER TWO YEARS THE PAPER LAUNCHED A ROUND OF STAFF CUTS LAST FALL AND CONSOLIDATED SEVERAL SECTIONS ACCORDING TO MR GODWIN THE PAPER'S BUSINESS PLAN CALLS FOR IT TO BREAK EVEN WITHIN FIVE YEARS THE POST HAS HAD TO FOLLOW THE TIMES ON SOME TITILLATING LOCAL STORIES INCLUDING A RECENT TIMES SCOOP ON MAYOR SHARON PRATT KELLY'S ANNUAL 5000 BILL TO THE CITY FOR A PROFESSIONAL MAKEUP ARTIST ANOTHER WAS ITS SERIES ON A LOCAL CALL BOY RING IN WHICH A COUPLE OF LOWLEVEL BUSH ADMINISTRATION OFFICIALS WERE ENSNARED AS WELL AS REP BARNEY FRANK THE COVERAGE IMPLICATED ONE OF THE TIMES' OWN EDITORS AS WELL AND THE EDITOR RESIGNED IT WAS QUITE AN INTERESTING AFTERNOON MR PRUDEN RECALLS BUT OTHER FRONTPAGE EXPOSES HAVE FALLEN FLAT AMID UNSUBSTANTIATED CHARGES MAKING THE REST OF THE PRINT PRESS SOME TIMES LOATH TO FOLLOW THE STORIES THERE'S NO QUESTION THAT THE WASHINGTON TIMES HAS BROKEN SOME IMPORTANT STORIES THAT WE HAVE OCCASIONALLY CHASED SAYS POST MEDIA CRITIC HOWARD KURTZ BUT SOME OF THE STORIES HAVE SUCH A PARTISAN EDGE THAT THEY NEED TO BE TAKEN WITH A GRAIN OF SALT MR SEPER THE WHITEWATER REPORTER HAS BEEN SUED FOR LIBEL AT LEAST TWICE AND ONE OF THE SUITS AGAINST MR SEPER AND HIS FORMER EMPLOYER THE ARIZONA REPUBLIC IS PENDING MORE RECENTLY HE LED THE PAPER FOR SEVERAL DAYS WITH UNSUBSTANTIATED STORIES ALLEGING THAT INTERIOR SECRETARY BRUCE BABBITT WHO WAS BEING CONSIDERED FOR A SUPREME COURT POST HAD TIES TO ORGANIZED CRIME MOST PEOPLE TOOK IT AS OH IT'S THE WASHINGTON TIMES WHAT DO YOU EXPECT' RECALLS MARY HELEN THOMPSON A SPOKESMAN FOR MR BABBITT I THINK WE REPORTED CORRECTLY WHAT WE WERE TOLD SAYS MR PRUDEN THE WASHINGTON TIMES IS NOMINATING MR SEPER FOR THE PULITZER PRIZE FOR HIS WHITEWATER COVERAGE NOTES MR PRUDEN BUT IT WILL BE A COLD DAY IN HELL BEFORE THE NEW YORK TIMES OR THE WASHINGTON POST LETS THAT HAPPEN HE ADDS THE PAPER'S OWNERSHIP PROBLEM AS SOME WHO WORK THERE DELICATELY REFER TO ITS TIES TO THE UNIFICATION CHURCH PROVIDES ANOTHER REASON FOR SKEPTICISM FROM THE OUTSIDE BUT ITS EMPLOYEES PERHAPS A DOZEN OF 220 EDITORIAL STAFFERS ARE MEMBERS ARE CLEARLY TRYING TO PLAY DOWN THE RELIGIOUS AFFILIATION JOSETTE SHINER THE MANAGING EDITOR IS HIGHLY REGARDED BY PRESENT AND PAST REPORTERS WHEN HER MEMBERSHIP IN THE CHURCH WAS REFERRED TO IN A WASHINGTON POST STORY SHE COMPLAINED AND RECEIVED A WRITTEN APOLOGY FROM EXECUTIVE EDITOR LEONARD DOWNIE JR I HAVE A REAL PROBLEM WITH SOMEONE'S PERSONAL RELIGION BEING AN ISSUE AT ALL SHE SAYS SEVERAL REPORTERS HAVE LEFT THE PAPER IN IDEOLOGICAL FLAPS CHARGING THAT THEIR STORIES WERE GIVEN A HARD CONSERVATIVE TONE DAWN WEYRICH COEL QUIT HER REPORTING JOB AFTER A STORY SHE WROTE ON THE ANITA HILLCLARENCE THOMAS HEARINGS WAS ALTERED TO CONTAIN FACTUAL ERRORS GENE GRABOWSKI QUIT HIS REPORTING JOB IN 1988 AFTER WRITING A DUKAKIS CAMPAIGN STORY THAT RAN BENEATH A HEADLINE SCREAMING DUKAKIS' KIN HINTS AT SESSIONS MR GRABOWSKI SAYS HIS EDITORS TRUMPED UP ALLEGATIONS OF PSYCHOLOGICAL TREATMENTS OF THE FORMER PRESIDENTIAL CANDIDATE BUT EVEN DISGRUNTLED FORMER EMPLOYEES ASSERT THAT THE TIMES FILLS A NICHE BY PROVIDING AN ALTERNATIVE VOICE IN THE NATION'S CAPITAL THEIR BIGGEST SIN IS THEY ARE POLITICALLY INCORRECT SAYS MR GRABOWSKI ADDING IT'S IRREVERENT AND WILD THE POST IS PART OF THE ESTABLISHMENT 9403180008 940318 EU SEEKS HEADWAY IN ENERGY TREATY ON RUSSIA'S BEHALF BY JAMES PRESSLEY STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS A SENIOR EUROPEAN UNION DIPLOMAT THIS WEEK ANNOUNCED PLANS TO NEGOTIATE A COMPROMISE ON A 50NATION TREATY MEANT TO SPUR WESTERN INVESTMENT IN THE FORMER SOVIET UNION'S RICH OILANDGAS FIELDS THE TIME IS RIPE FOR A DECISION DECLARED DUTCH DIPLOMAT CHARLES RUTTEN WHO SAID THE RAPID COMPLETION OF THE EUROPEAN ENERGY CHARTER TREATY WOULD HELP CONVINCE MOSCOW THAT THE WEST IS SERIOUS ABOUT HELPING RUSSIA DEVELOP ECONOMICALLY MR RUTTEN WHO IS HEADING THE TREATY TALKS SAID THAT IN THE NEXT FEW WEEKS HE WILL HOLD HIGHLEVEL MEETINGS IN DIFFERENT CAPITALS ON THE FEW REMAINING TREATY OBSTACLES HE AND HIS ASSISTANTS PLAN TO HAMMER OUT A COMPROMISE PACKAGE BEFORE DELEGATES OF THE 50 COUNTRIES MEET IN BRUSSELS FOR THEIR NEXT PLENARY SESSION MAY 16 AT A PLENARY MEETING LAST WEEK THE DELEGATES CAME CLOSE TO TYING UP LOOSE ENDS OF THE TREATY WHICH WOULD OFFER LEGAL PROTECTION TO WESTERNERS INVESTING IN THE FORMER SOVIET UNION'S ENERGY SECTOR BUT MR RUTTEN SAID NEGOTIATORS WERE UNABLE TO OVERCOME THREE POLITICAL QUESTIONS THESE ARE RUSSIA'S DESIRE TO SELL URANIUM IN WESTERN EUROPE THE EU'S DEMAND FOR SPECIAL TREATMENT FOR REGIONAL ECONOMICINTEGRATION ORGANIZATIONS SUCH AS THE UNION ITSELF AND EXCEPTIONS TO THE PRINCIPLE THAT AN INVESTOR FROM ONE TREATY COUNTRY PUTTING MONEY INTO ANOTHER TREATY COUNTRY SHOULD BE TREATED AS WELL AS A LOCAL INVESTOR THE EU STANDS SQUARELY IN THE MIDDLE OF TWO OF THE DISPUTES ON URANIUM THE EU IS RESISTING MOSCOW'S REQUEST FOR STRATEGIC AS WELL AS ECONOMIC REASONS THE IDEA OF RUSSIAN URANIUM SALES FACES STIFF RESISTANCE FROM SOME EU MEMBER STATES NOTABLY FRANCE WHICH DEPENDS ON NUCLEAR POWER FOR ROUGHLY 80 OF ITS ENERGY PRODUCTION RUSSIAN PRICES FOR ENRICHED URANIUM SOLD ON WORLD MARKETS ARE WELL BELOW THE PRICES OF URANIUM PRODUCED IN THE EU MR RUTTEN NOTED THIS THREATENS THE VIABILITY OF THE EU INDUSTRY THE EU ALSO IS BLOCKING PROGRESS BY INSISTING THE TREATY INCLUDE AN EXCEPTION FOR REGIONAL ORGANIZATIONS SET UP TO LIBERALIZE TRADE AND INVESTMENT BETWEEN MEMBERS COMMISSION NEGOTIATORS HAVE ARGUED THE TREATY SHOULDN'T OBLIGE SUCH GROUPS TO EXTEND TO NONMEMBERS THE PREFERENCES THAT MEMBERS ENJOY NONEUROPEAN COUNTRIES ESPECIALLY THE US AND JAPAN FEAR THE MOVE REPRESENTS AN ATTEMPT TO RAISE BARRIERS TO FOREIGN INVESTMENT IN THE EU MR RUTTEN SAID THE DEMAND THREATENS TO INTRODUCE A LACK OF BALANCE INTO THE TREATY BECAUSE OTHER DELEGATES WOULD HAVE TO ACCEPT VERY CLEAR OBLIGATIONS WHILE THE EUROPEAN COMMUNITY COULD BE VAGUE EVEN SO HE AND OTHER EU DIPLOMATS VOICED CONFIDENCE THAT THE ISSUE COULD BE SETTLED ON THE BASIS OF THE EU'S TREATY OF ROME WHICH STATES THAT ANY COMPANY ESTABLISHED IN THE EU IS CONSIDERED AN EU COMPANY IN THIS LIGHT MR RUTTEN SAID US AND JAPANESE CONCERNS AMOUNTED TO THE FEAR OF THE UNKNOWN BECAUSE IT IS UNCLEAR HOW THE EU WOULD USE THE EXCEPTION MR RUTTEN ALSO EXPRESSED CONFIDENCE THAT A SOLUTION COULD BE FOUND ON THE QUESTION OF NATIONAL TREATMENT SOME DELEGATES DO NOT WANT ANY EXCEPTIONS TO NATIONAL TREATMENT HE SAID BUT A NUMBER OF INDUSTRIES IN THE EXUSSR CAN'T SURVIVE WITHOUT SUBSIDIES GIVEN THE REGION'S ECONOMIC DISTRESS MR RUTTEN SAID DELEGATES AT LAST WEEK'S PLENARY SESSION DECIDED TO CHANGE THEIR PROCEDURES BY ASKING HIM TO NEGOTIATE A COMPROMISE DIRECTLY WITH THE GOVERNMENTS THAT WOULD SIGN THE TREATY THE GENERAL FEELING IS THAT THE DEBATE SHOULD BE LIFTED TO A POLITICAL LEVEL AND THAT GOVERNMENTS SHOULD TAKE RESPONSIBILITY ALTHOUGH THE TREATY NEGOTIATIONS HAVE DRAGGED ON FOR 2 1/2 YEARS MR RUTTEN SAID THEY HAD TAKEN ON A NEW URGENCY IN LIGHT OF RECENT WESTERN COOPERATION AGREEMENTS WITH EAST EUROPEAN COUNTRIES THESE AGREEMENTS HAVE GIVEN MOSCOW THE IMPRESSION THE WEST WANTS TO EXCLUDE RUSSIA MR RUTTEN SAID RAPID CONCLUSION OF THE ENERGY TREATY HE ARGUED WOULD SEND MOSCOW AN IMPORTANT POLITICAL SIGNAL THAT THE WEST IS DETERMINED TO INCLUDE RUSSIA IN COOPERATION AND TO HELP RUSSIA DEVELOP ECONOMICALLY MR RUTTEN VOICED HOPE THAT THE COMPROMISE TEXT WOULD PAVE THE WAY FOR THE DISAGREEMENTS TO BE RESOLVED AT THE PLENARY MEETING IN MAY THAT WOULD ALLOW THE TREATY TO BE SIGNED EARLY THIS SUMMER 9403180007 940318 LETTERS TO THE EDITOR TWO BIG MYTHS ABOUT ABORTION KITRINA WINTHER LETTERS FEB 14 PERPETUATES SOME DANGEROUS MYTHS ABOUT ABORTION THE FUNDAMENTAL MYTH IS HER VIEW THAT THE QUESTION OF WHEN LIFE BEGINS IS A PERSONAL AND OFTEN RELIGIOUS BELIEF MEDICAL TECHNOLOGY HAS CONFIRMED UNIFORMLY AND UNANIMOUSLY WHAT THE AMERICAN MEDICAL ASSOCIATION KNEW IN 1871 TRANSACTIONS OF THE AMA VOL 22 1871 P 258 LIFE BEGINS AT CONCEPTION THEY WHO ASSERT OTHERWISE ARE THE ONES IMPOSING RELIGIOUS VIEWS NO AMOUNT OF EVIDENCE WILL CHANGE THEIR MINDS THE SECOND MYTH IS THAT THE ABORTION DECISION COMES ONLY AFTER LONG HOURS FORMER ABORTUARY OPERATORS ADMIT THAT ABORTION IS A PRESSURE PRODUCT SOLD TO A WOMAN IN A CRISIS SITUATION ALL TOO OFTEN THE ABORTION IS SOLD AT THE SAME TIME THAT THE PREGNANCY TEST COMES BACK POSITIVE THE WOMAN IS NOT TOLD THE TRUTH ABOUT HER BABY BARELY TOLD ANYTHING ABOUT THE SERIOUS POTENTIAL CONSEQUENCES TO HER AND RARELY TOLD ABOUT ALTERNATIVES SUCH AS THE NURTURING NETWORK THE PURPOSE OF THE RIGHTTOLIFERS OUTSIDE THE ABORTUARY IS THEN OBVIOUS CORRECT THESE INEQUITIES LET THE WOMAN KNOW THERE ARE PEOPLE WHO GENUINELY CARE WHO ARE WILLING TO HELP HER EVEN TO FACE A FATHER WHOM THE OPERATOR WANTS THE WOMAN TO BELIEVE WOULD DO SOMETHING VERY UNPLEASANT TO HER THE ABORTUARY TRESPASS IS NOTHING MORE THAN A DIFFERENT USE OF THE '60S SITIN OF ROSA PARKS SITTING IN THE WRONG SECTION OF THE BUS OF BLACKS SITTING ILLEGALLY AT A LUNCH COUNTER IN NORTH CAROLINA JUST SITTING NOT DOING PEACEFUL NOT VIOLENT ILLEGAL BUT NOTHING CLOSE TO THE HYSTERICAL RANTINGS OF PROABORTION ZEALOTS AND THAT IS WHY VARIOUS OTHER PROTEST GROUPS EVEN THOSE DESPISING RIGHTTOLIFERS SIDED WITH THE RIGHTTOLIFERS IN THE RICO CASE ONE DOES NOT HAVE TO LIKE THE PROTEST BUT ONE HAS NO RIGHT TO OVERREACT AGAINST THE PROTESTERS 9403180006 940318 AUTOMOBILES BY KRYSTAL MILLER LAST YEAR MOST AMERICANS WHO BOUGHT NEW CARS AND TRUCKS WANTED THEM WHITE BUT GREEN THE EARTHY FAVORITE OF THE 1960S IS STAGING A BIG COMEBACK ACCORDING TO THE 42ND ANNUAL SURVEY OF VEHICLE COLOR BY DUPONT AUTOMOTIVE THE DUPONT UNIT THAT PROVIDES PAINT COATINGS FOR THE BIG THREE AUTO MAKERS GREEN RANKED BEHIND WHITE IN ALL BUT ONE CATEGORY SPORT AND COMPACT CARS WHERE IT WAS NO 1 NEARLY 20 OF ALL VEHICLES PURCHASED LAST YEAR WERE WHITE DOWN FROM 24 IN 1992 GREEN'S POPULARITY DOUBLED TO MORE THAN 15 OF VEHICLES PURCHASED IN NORTH AMERICA MEDIUM RED WAS THE NO 3 CHOICE ACCOUNTING FOR 105 OF VEHICLE PURCHASES BRIGHT RED WAS NO 4 AT 88 AND BLACK AT 72 RANKED NO 5 THE SHIFT TOWARD GREEN REFLECTS CONSUMERS' CHANGING LIFESTYLES SAYS ROSEANN FORDE DUPONT'S FASHION DIRECTOR OF WOMEN'S APPAREL PEOPLE WHO SELECT GREEN ARE SOCIALLY WELL ADJUSTED CIVILIZED AND SUBURBAN SAYS MS FORDE THE FACT THAT GREEN IS OVERTAKING WHITE INDICATES SECURITY IS THE BIG ISSUE NOW IN THESE UNCERTAIN TIMES PEOPLE ARE LOOKING FOR MORE SECURITY GREEN WILL REMAIN POPULAR FOR THE NEXT SEVERAL YEARS SAYS DUPONT NO NEW COLOR APPEARS TO BE MAKING A MOVE THAT WOULD RIVAL THE GREENING OF THE AUTO INDUSTRY SAYS BOB DAILY DUPONT AUTOMOTIVE'S COLOR STYLING MANAGER NEVERTHELESS CHANGE IS CLEARLY COMING HE PREDICTS PURPLE WILL BECOME INCREASINGLY POPULAR AS WILL GOLD PROTECTING YOUR CAR OR TRUCK FROM THIEVES USED TO BE AS SIMPLE AS BUYING AN ALARM BUT AS BANDITS BECOME MORE SOPHISTICATED AND AGGRESSIVE THE TYPES OF ANTITHEFT DEVICES ARE PROLIFERATING MALVY TECHNOLOGY OF OKLAHOMA CITY HAS A SYSTEM IT CLAIMS MAKES IT VIRTUALLY IMPOSSIBLE FOR CAR THIEVES TO DRIVE AWAY WITH IT THE STEERING WHEEL WILL SPIN FREELY WITHOUT TURNING THE TIRES IF YOU CAN'T STEER THE CAR YOU CAN'T STEAL IT SAYS J STEPHEN SMITH MALVY'S PRESIDENT CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE SYSTEM IS SOLD IN EUROPE AND WILL BE AVAILABLE IN THE US BY YEAR'S END FOR BETWEEN 700 AND 800 GAINING POPULARITY ARE TRACKING SYSTEMS THAT LEAD POLICE TO STOLEN VEHICLES LOJACK OF DEDHAM MASS IS THE BESTKNOWN PROVIDER LOJACK IS ACTIVATED WHEN A CAR IS REPORTED STOLEN A TRANSMITTER IN THE VEHICLE LEADS POLICE TO ITS LOCATION THE COMPANY SAYS IT HAS A 95 RECOVERY RATE COMPARED WITH WITH 64 NATIONALLY FOR STOLEN CARS NOT EQUIPPED WITH LOJACK THE COMPANY SAID THAT IN MOST CASES CARS WITH THE LOJACK SYSTEM ARE RECOVERED WITHIN TWO HOURS IT SELLS FOR 595 MORE CONVENTIONAL ANTITHEFT DEVICES ARE STEERINGWHEEL BARS SUCH AS THE CLUB SUCH DEVICES CAN BE BOUGHT AT AUTOMOTIVE ACCESSORY AND EQUIPMENT STORES FOR ABOUT 40 DESPITE THESE GIZMOS NOTHING IS FOOLPROOF SAYS CLARENCE DITLOW DIRECTOR OF THE CENTER FOR AUTO SAFETY TO HIM THE MOST EFFECTIVE DETERRENT IS COMMON SENSE LOCK THE DOORS AND PARK IN WELLLIGHTED AREAS AUTO COMPANIES LOVE TO BOAST ABOUT THE CAR OF THE YEAR AWARDS THEY RECEIVE THEY TAKE OUT FULLPAGE ADS AND FLAUNT THEIR VICTORIES IN TV COMMERCIALS CONSUMERS THE AUTO COMPANIES ASSUME WILL BE IMPRESSED NOT NECESSARILY IN RECENT YEARS THE NUMBER OF AUTOMOTIVE AWARDS HAS SOARED TO MORE THAN A DOZEN THIS YEAR THE HONDA ACCORD IS MOTOR TREND MAGAZINE'S IMPORT CAR OF THE YEAR MERCEDESBENZ'S CCLASS WAS NAMED NORTH AMERICAN CAR OF THE YEAR BY A PANEL OF AUTOMOTIVE JOURNALISTS THE ACURA INTEGRA WAS RANKED THE MOST IMPROVED CAR OF 1994 BY AMERICA ON THE ROAD A NATIONAL RADIO PROGRAM AND THE FORD RANGER XLT WAS CROWNED THE BEST AMERICAN TRUCK VALUE BY INTELLICHOICE A SAN JOSE CALIF RESEARCH FIRM THE MORE AWARDS THERE ARE THE LESS IMPACT THEY HAVE PEOPLE START TUNING THEM OUT SAYS PETER LEVY PRESIDENT OF INTELLICHOICE AUTO EXPERTS SAY CONSUMERS AND AUTO COMPANIES VALUE SOME AWARDS MORE HIGHLY THAN OTHERS PRIZES GIVEN BY JD POWER & ASSOCIATES MOTOR TREND MAGAZINE AND CONSUMER REPORTS MAGAZINE ARE ESPECIALLY VALUED THEY SAY THE AWARDS ARE INDICATIVE OF ALL THE THINGS YOU'RE DOING RIGHT SAYS JOHN MACIARZ A SPOKESMAN FOR GENERAL MOTORS YOU ALWAYS APPRECIATE THAT KIND OF RECOGNITION BUT WINNING AN AWARD DOESN'T GUARANTEE SALES SUCCESS CONSIDER THE 1993 MAZDA RX7 MOTOR TREND'S 1993 IMPORT CAR OF THE YEAR ITS SALES DROPPED 157 LAST YEAR TO JUST 5062 VEHICLES AUTO MAKERS HAVEN'T RECOMMENDED 10W40 OIL FOR ENGINES SINCE 1988 BUT MANY CAR OWNERS CONTINUE TO USE THE THICK GOOEY LUBRICANT PEOPLE WHO GREW UP IN THE 1960S STILL PUT 10W40 IN THEIR CARS SAYS JIM STEIGER AN OIL SPECIALIST WITH THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION ABOUT 32 OF ALL AUTOMOTIVE OIL SOLD IN THE US IS 10W40 EVEN THOUGH THE MUCH THINNER 10W30 OR 5W30 IS RECOMMENDED FOR VIRTUALLY EVERY NEW GASPOWERED VEHICLE EVEN MOST CARS BUILT BEFORE 1988 RUN BETTER WITH 10W30 OR 5W30 AUTO MAKERS SAY THE W30 OILS FLOW MORE EASILY THROUGH A CAR'S ENGINE AND ARE BEST FOR CATALYTIC CONVERTERS AND ENGINE MAINTENANCE EXPERTS SAY THE 10W40 OIL TAKES LONGER TO CIRCULATE THROUGH A VEHICLE'S ENGINE WHICH COULD MAKE IT DIFFICULT TO START IN COLD WEATHER AND OIL'S THICKNESS FORCES THE ENGINE TO WORK HARDER AUTO MAKERS AND THE AMERICAN PETROLEUM INSTITUTE HAVE TEAMED UP TO STEER CONSUMERS IN THE RIGHT DIRECTION THE PROPER OIL HAS ALWAYS BEEN LISTED IN OWNER'S MANUALS BUT NOW AUTO COMPANIES AND THE OIL INDUSTRY ARE PUTTING A SEAL OF APPROVAL ON CANS OF W30 OILS THAT MEET CERTAIN PERFORMANCE REQUIREMENTS FOR INSTANCE CERTIFIED OIL MUST PASS COLDSTART TESTS AND MEET STANDARDS FOR FUEL ECONOMY AND ENGINE WEAR 9403180005 940318 HOST MARRIOTT TO SELL MOST OF SENIOR CENTERS FOR 3024 MILLION WASHINGTON HOST MARRIOTT CORP SAID IT AGREED TO SELL THE BULK OF ITS SENIORLIVING CENTERS TO HEALTH AND REHABILITATION PROPERTIES TRUST FOR 3024 MILLION THE SALE IS PART OF A CONTINUING HOST MARRIOTT PLAN TO SELL ASSETS AND PURCHASE ADDITIONAL HOTEL PROPERTIES HOST SAID IT EXPECTS TO RECORD A SECONDQUARTER GAIN ON THE SALE IF THE DEAL CLOSES IN EARLY JUNE AS EXPECTED HEALTH AND REHABILITATION A HEALTHCARE REAL ESTATE INVESTMENT TRUST BASED IN NEWTON MASS SAID IT WILL PAY 3024 MILLION IN CASH FOR THE PROPERTIES IN ADDITION THE COMPANY WILL ASSUME 176 MILLION IN DEBT A SPOKESMAN SAID THE COMPANY HASN'T DECIDED HOW TO FINANCE THE PURCHASE THE COMPANY SAID THAT MERRILL LYNCH & CO WHICH WAS INVOLVED IN THE NEGOTIATIONS BETWEEN THE PARTIES IS EXPECTED TO PROVIDE SOME OF THE FINANCING THE DEAL WILL BOOST ITS INVESTMENT PORTFOLIO 63 TO 836 MILLION THE SPOKESMAN SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE TRUST'S SHARES FELL TO 15875 DOWN 375 CENTS HOST MARRIOTT'S SHARES WERE UNCHANGED AT 11625 THE 14 FACILITIES INCLUDED IN THE SALE PACKAGE ARE LEASED TO MARRIOTT INTERNATIONAL INC WHICH WILL CONTINUE TO OPERATE THEM THE FACILITIES OFFER A NUMBER OF RESIDENTIAL OPTIONS TO SENIOR CITIZENS INCLUDING INDEPENDENT LIVING ASSISTED LIVING AND SKILLED NURSING CARE HOST MARRIOTT OWNS HOTELS AIRPORT AND TOLLROADCONCESSION SERVICES AND 18 SENIORLIVING CENTERS ITS SISTER COMPANY MARRIOTT INTERNATIONAL IS A LODGING AND SERVICES MANAGEMENT CONCERN THE TWO COMPANIES WERE FORMED LAST YEAR WITH THE SPLIT OF MARRIOTT CORP 9403180004 940318 GEORGIAPACIFIC GIVES 111 MILLION IN STOCK TO FORMER CHAIRMAN ATLANTA T MARSHALL HAHN JR WHO RETIRED AS CHAIRMAN OF GEORGIAPACIFIC CORP IN DECEMBER RECEIVED 162000 SHARES OF COMPANY STOCK THAT HE HAD ACCUMULATED FROM 1988 THROUGH 1993 ACCORDING TO THE COMPANY'S 1994 PRELIMINARY PROXY STATEMENT THE STOCK AWARDS PART OF TWO LONGTERM INCENTIVE PLANS TIED TO COMPANY STOCKPRICE INCREASES WERE ACCOMPANIED BY 97 MILLION WORTH OF TAX PAYMENTS BY THE COMPANY ON BEHALF OF MR HAHN IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GEORGIAPACIFIC STOCK CLOSED AT 6850 A SHARE UP 125 GIVING THE 162000 SHARES AN INDICATED VALUE OF 111 MILLION ORDINARILY SUCH STOCK AWARDS WOULD HAVE BEEN SPREAD OUT OVER A NUMBER OF YEARS SAID A COMPANY SPOKESWOMAN BUT THEY BECAME VESTED ALL AT ONCE BECAUSE OF HIS RETIREMENT SHE EMPHASIZED THAT THE STOCK AWARDS WERE PREDICATED ON COMPANY STOCKPRICE INCREASES IN A PLAN APPROVED BY SHAREHOLDERS IN 1993 MR HAHN EARNED A SALARY OF 14 MILLION A BONUS OF 500000 AND LONGTERM INCENTIVE PLAN PAYOUTS OF 14 MILLION HIS RETIREMENT PACKAGE INCLUDES THE PROVISION OF AN OFFICE AND SECRETARIAL SERVICE FOR AS LONG AS 10 YEARS GEORGIAPACIFIC ESTIMATES THAT BENEFIT TO BE WORTH 581000 AD PETE CORRELL MR HAHN'S SUCCESSOR AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER EARNED 816667 IN SALARY 550000 IN BONUSES AND 14 MILLION IN LONGTERM INCENTIVE PAYOUTS IN 1993 IN ADDITION MR CORRELL RECEIVED NEW LONGTERM INCENTIVEPLAN ALLOCATIONS OF 140000 COMPANY SHARES WHICH CAN BE EARNED INCREMENTALLY ONLY IF GEORGIAPACIFIC'S STOCK PRICE HITS CERTAIN TARGETS RANGING FROM 7176 A SHARE TO 12852 A SHARE 9403180003 940318 TECHNOLOGY SUN MICROSYSTEMS INC TO PAY NOVELL A FEE TOTALING 825 MILLION MOUNTAIN VIEW CALIF SUN MICROSYSTEMS INC AGREED TO PAY NOVELL INC 825 MILLION AS A ONETIME LICENSE FEE TO USE THE UNIX OPERATING SYSTEM SOFTWARE THAT CONTROLS THE BASIC OPERATIONS OF COMPUTERS SOLD BY SUN AND OTHER COMPANIES THE DEAL REPLACES A PREVIOUS ARRANGEMENT UNDER WHICH SUN HAD PAID NOVELL A ROYALTY FOR EACH COPY SOLD OF SUN'S UNIXBASED OPERATING SYSTEM CALLED SOLARIS IT FREES SUN FROM COMPLEX RESTRICTIONS ON ITS ABILITY TO MODIFY UNIX AND CUT SPECIAL PRICING DEALS WITH CUSTOMERS THE RESTRICTIONS DATE FROM A 1987 AGREEMENT BETWEEN SUN AND AMERICAN TELEPHONE & TELEGRAPH CO WHICH INVENTED THE PROGRAM BUT SOLD ITS UNIX BUSINESS TO NOVELL LAST YEAR IT WAS A MESS SAID SCOTT MCNEALY SUN'S CHIEF EXECUTIVE OFFICER WE HAD TO HAVE PEOPLE WHO WERE EXPERTS ON THAT THING TO KNOW WHAT WE COULD DO SIGNIFICANTLY THE NEW ARRANGEMENT ALLOWS SUN TO GRANT ITS OWN UNIX LICENSES TO OTHER HARDWARE MAKERS WHICH WOULD NOT BE REQUIRED TO PAY ANYTHING TO NOVELL IN THE PAST THE COMPANY HAD TO ASK SUCH POTENTIAL CUSTOMERS TO SEEK AN ADDITIONAL LICENSE FROM NOVELL WHICH COMPETES WITH SUN BY SELLING ITS OWN VERSION OF UNIX DAVID CARD AN ANALYST AT INTERNATIONAL DATA CORP BELIEVES SUN WANTS TO SUPPLANT NOVELL AS THE PRIMARY STANDARD BEARER FOR UNIX HOWEVER HE DOUBTS THAT MANY OF SUN'S MAJOR COMPUTER COMPETITORS WILL WANT TO BUY FROM SUN NOVELL WHICH ALSO GAVE SUN A LICENSE TO SOME OF ITS NETWARE SOFTWARE TECHNOLOGIES IS TALKING WITH OTHER MAJOR COMPUTER MAKERS ABOUT CUTTING SIMILAR UNIX DEALS RAYMOND NOORDA ITS CEO SAID SUCH LICENSE AGREEMENTS WILL HELP BROADEN THE MARKET FOR UNIX AGAINST COMPETITORS 9403180001 940318 FAMILY MATTERS GAY EMPLOYEES WIN BENEFITS FOR PARTNERS AT MORE CORPORATIONS COST IS LESS THAN EXPECTED BUT CUSTOMER REACTION WORRIES SOME EXECUTIVES IT'S A VALIDATION OF SORTS' BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF TOM CLARKSON HAS WORKED FOR 27 YEARS IN THE PAYROLL DEPARTMENT AT WARNER BROS BUT IT WASN'T UNTIL LAST YEAR THAT THE 60YEAROLD ADMINISTRATOR WAS OFFERED A COMPANY BENEFIT THAT MOST OF HIS COWORKERS TAKE FOR GRANTED HEALTHINSURANCE COVERAGE FOR SPOUSES THAT'S BECAUSE MR CLARKSON'S SPOUSE OF 34 YEARS IS A MAN THIS IS THE TIME OF MY LIFE TO STAND UP FOR WHO I AM AND WHAT I AM SAYS MR CLARKSON WHO HAS SPENT THE PAST SEVERAL YEARS PRODDING THE HUMANRESOURCES DEPARTMENT OF THE TIME WARNER INC STUDIO TO EXTEND BENEFITS TO HIS COMPANION TONY BAQUE 57 LAST AUGUST WARNER BROS JOINED A GROWING LIST OF NAMEBRAND COMPANIES PROVIDING SUCH BENEFITS TO DOMESTIC PARTNERS LAST WEEK ITS CORPORATE SIBLING TIME INC WENT ALONG ALL OVER CORPORATE AMERICA EXECUTIVES ARE BEING PRESSED TO ACKNOWLEDGE THE CHANGING FACE OF MANY AMERICAN HOUSEHOLDS AS UNMARRIED EMPLOYEES BOTH GAY AND STRAIGHT DEMAND BENEFITS FOR THEIR DOMESTIC PARTNERS SPURRED BY THE SUCCESS OF ACTIVISTS WHO HAVE WON SUCH BENEFITS FOR CITY EMPLOYEES FROM NEW YORK TO SEATTLE AND AT UNIVERSITIES FROM STANFORD TO HARVARD DOZENS OF PRIVATESECTOR EMPLOYEE GROUPS ARE NOW PUSHING FOR COVERAGE OF SIGNIFICANT OTHERS UNDER CORPORATE HEALTHINSURANCE PLANS ALREADY MORE THAN 70 MAJOR COMPANIES OFFER DOMESTICPARTNER BENEFITS WITH MOST LIMITING COVERAGE TO GAY EMPLOYEES AMONG THEM LOTUS DEVELOPMENT CORP SILICON GRAPHICS INC MCA INC MICROSOFT INC VIACOM INC ORACLE SYSTEMS CORP APPLE COMPUTER INC AND TIME WARNER'S HBO INC A FEW ALSO COVER HETEROSEXUAL UNMARRIED COUPLES INCLUDING BEN & JERRY'S HOMEMADE INC LEVI STRAUSS & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION AND BORLAND INTERNATIONAL INC POLITICAL CORRECTNESS GOES ONLY SO FAR TO EXPLAIN THIS GROWING PHENOMENON FOR MANY COMPANIES A MORE PERSUASIVE FACTOR MAY BE COST THE ADDED BENEFITS TURN OUT TO COME SURPRISINGLY CHEAP FOR STARTERS ONLY A MINUSCULE PORTION OF ELIGIBLE EMPLOYEES ACTUALLY SIGN UP FOR THE BENEFITS BOTH BECAUSE THEY FACE TAX IMPLICATIONS AND BECAUSE SOME GAY WORKERS DON'T WANT TO DECLARE THEIR SEXUAL ORIENTATION IN THE WORKPLACE AND CONTRARY TO MANY FIRMS' EXPECTATIONS HEALTHCARE COSTS FOR GAY PARTNERS ARE OFTEN LESS THAN THOSE OF HETEROSEXUALS DESPITE CORPORATE FEARS OF FOOTING THE BILL FOR MORE AIDS CASES FIRMS CAN ADOPT A BENEFIT THAT DOESN'T COST MUCH OF ANYTHING BUT THAT SENDS AN INCREDIBLY POWERFUL MESSAGE OF A COMPANY'S SUPPORT OF ALL OF ITS EMPLOYEES REGARDLESS OF SEXUAL ORIENTATION SAYS RICHARD JENNINGS EXECUTIVE DIRECTOR OF HOLLYWOOD SUPPORTS A GROUP PROMOTING AWARENESS OF GAY AND AIDSRELATED ISSUES THAT WAS CREATED BY MCA PRESIDENT SIDNEY SHEINBERG AND BARRY DILLER THEN CHIEF OF NEWS CORP'S FOX INC PRESSURE IS MOUNTING ON SOME OF THE COUNTRY'S LARGEST COMPANIES TO FOLLOW EMPLOYEE GROUPS CURRENTLY ARE PRESSING FOR THE BENEFITS AT AMERICAN TELEPHONE & TELEGRAPH CO WALT DISNEY CO AMERICAN EXPRESS CO RJR NABISCO HOLDINGS CORP'S NABISCO FOODS GROUP NYNEX CORP EASTMAN KODAK CO AND DUPONT CO AMONG OTHERS KATHY STIGMON BEN & JERRY'S PERSONNELOPERATIONS MANAGER SAYS SHE GETS AN AVERAGE OF THREE CALLS A WEEK FROM COMPANIES CONSIDERING DOMESTICPARTNER BENEFITS IT'S THE NO 1 QUESTION I GET ASKED SHE SAYS BUT BEFORE ANY COMPANY GRANTS SUCH BENEFITS EXECUTIVES MUST GRAPPLE WITH A HOST OF PRICKLY ISSUES WILL THEY ALIENATE CUSTOMERS OR FACE BATTLES WITH ANTIHOMOSEXUAL GROUPS AS APPLE DID LAST YEAR IN TEXAS SHOULD COVERAGE BE LIMITED TO GAY EMPLOYEES WHO CAN'T LEGALLY GET MARRIED OR SHOULD HETEROSEXUAL UNMARRIED COUPLES BE INCLUDED TOO AND PERHAPS MOST PRESSING OF ALL AT SOME COMPANIES WILL THEY FACE AN INCREASED LOAD OF COSTLY AIDS CASES IT TOOK LOTUS A FULL TWO YEARS TO WEIGH THOSE QUESTIONS BEFORE IT TOOK THE PLUNGE IN 1991 BECOMING THE LARGEST PUBLICLY HELD COMPANY AT THE TIME TO OFFER HEALTH INSURANCE TO ITS GAY EMPLOYEES' PARTNERS MUCH OF THE HESITATION WAS AROUND AIDS AND THE ADDITIONAL COSTS ACKNOWLEDGES BRYAN SIMMONS SPOKESMAN FOR THE CAMBRIDGE MASS SOFTWARE DEVELOPER THE LIFETIME MEDICAL COST OF HIV TREATMENT AVERAGES 119000 PER PATIENT ACCORDING TO THE MOST RECENT FEDERAL AIDS COST AND UTILIZATION SURVEY BUT LOTUS WAS CONVINCED BY A STUDY OF OTHER PLANS ALREADY IN PLACE AT SEVERAL MUNICIPALITIES THE STUDY FOUND THAT GAY AND LESBIAN COUPLES ENROLLED IN THE PLANS WERE AT NO GREATER RISK OF CATASTROPHIC ILLNESS THAN MARRIED HETEROSEXUAL COUPLES MR SIMMONS SAYS LEVI STRAUSS TOO WAS CONCERNED ABOUT AIDS COSTS WHEN IT INSTITUTED ITS PLAN TWO YEARS AGO BUT THE COST FOR THE GROUP COVERED BY OUR DOMESTICPARTNER BENEFITS WAS SIGNIFICANTLY LOWER THAN FOR SPOUSES SAYS REESE SMITH DIRECTOR OF EMPLOYEE BENEFITS AT THE JEANS MAKER WHERE 1 OF THE 23000MEMBER US WORK FORCE HAS SIGNED UP COMPANIES SAY THE LOWER COST SO FAR REFLECTS THE FACT THAT ELIGIBLE EMPLOYEES TEND TO BE YOUNGER AND AS A RESULT HEALTHIER THAN OLDER MARRIED WORKERS A CONDITION THAT TO BE SURE WILL CHANGE AS CURRENT WORKERS AGE LESBIANS WHO MAKE UP AN ESTIMATED HALF OF ALL DOMESTIC PARTNERS ARE AT VERY LOW RISK FOR AIDS AND DOMESTIC PARTNERS TEND NOT TO RACK UP THE MATERNITY COSTS THAT SPOUSES DO THOSE FACTORS HAVEN'T BEEN LOST ON INSURANCE COMPANIES MANY OF WHICH USED TO SHY AWAY FROM DOMESTICPARTNER COVERAGE BUT NO LONGER DO WHEN SEATTLE ADDED DOMESTICPARTNER BENEFITS IN 1990 ONE OF ITS CARRIERS KING COUNTY MEDICAL BLUE SHIELD REFUSED INSURANCE SAYING IT COULDN'T ASSESS THE RISK TWO OTHERS ADDED SURCHARGES OF 2 AND 36 TO THE CITY'S MONTHLY PREMIUM BUT EXPERIENCE SHOWED THAT DOMESTIC PARTNERS COST LESS THAN MARRIED PARTNERS SAYS SALLY FOX THE CITY'S BENEFITS AND SAFETY MANAGER BLUE SHIELD ULTIMATELY DECIDED TO OFFER COVERAGE AND THE OTHER TWO DROPPED THEIR SURCHARGES MOREOVER LESS THAN 1 OF EMPLOYEES SIGN UP FOR THE GAYPARTNERS BENEFITS THAT FIGURE RISES TO ABOUT 3 WHEN BENEFITS ARE ALSO OFFERED TO HETEROSEXUAL UNMARRIED PARTNERS ESTIMATES ILSE DE VEER OF WILLIAM M MERCER INC A STAMFORD CONN BENEFITS CONSULTING FIRM TAXES ARE A MAJOR CULPRIT THE INTERNAL REVENUE SERVICE TREATS DOMESTICPARTNER HEALTH BENEFITS AS TAXABLE IMPUTED INCOME UNLIKE HEALTH INSURANCE FOR SPOUSES AT ORACLE SYSTEMS IN REDWOOD CITY CALIF GAY EMPLOYEES WHO ENROLL THEIR PARTNERS IN THE COMPANY'S PREMIUM HEALTH PLAN PAY AS MUCH AS 1000 IN EXTRA TAXES EACH YEAR ESTIMATES PHILLIP WILSON A SENIOR VICE PRESIDENT SO IF BOTH PARTNERS ARE WORKING AS TENDS TO BE THE CASE IN GAY HOUSEHOLDS IT IS MORE ECONOMICAL FOR EACH TO HAVE HIS OR HER OWN INSURANCE MANY GAY EMPLOYEES ALSO DON'T PARTICIPATE BECAUSE THEY ARE AFRAID THAT BY DECLARING THEIR SEXUAL ORIENTATION AT WORK THEY MAY JEOPARDIZE THEIR CAREERS ONLY 20 OF LOTUS'S 3200 US WORKERS ARE CURRENTLY SIGNED UP FOR DOMESTICPARTNER BENEFITS AT VIACOM ONLY 18 OUT OF 5000 US EMPLOYEES HAVE SIGNED ON AND AT MCA IT'S 15 OUT OF 15000 EMPLOYEES RONALD STEPHENSON A CASTING DIRECTOR AT MCA'S UNIVERSAL STUDIOS WHO HAS WORKED FOR 15 YEARS ON SUCH TV SHOWS AS MURDER SHE WROTE AND COLUMBO WAS TERMINATED AS A FULLTIME EMPLOYEE LAST YEAR AND PUT ON FREELANCE STATUS WITHOUT BENEFITS FIVE MONTHS AFTER HE ADDED HIS PARTNER OF 29 YEARS TO THE PLAN I THINK WHAT THE STUDIO WANTED WAS TO DUMP MY BENEFITS PACKAGE SAYS MR STEPHENSON 55 MCA DECLINES TO COMMENT REFERRING QUERIES TO MR JENNINGS OF HOLLYWOOD SUPPORTS MR JENNINGS SAYS MR STEPHENSON'S CLAIM MAKES NO SENSE AT ALL COMPANIES HAVE TRIED TO ALLEVIATE EMPLOYEES' FEARS OF REPRISAL BY MAKING THE ENROLLMENT PROCESS AS CONFIDENTIAL AS POSSIBLE TO GET BENEFITS EMPLOYEES TYPICALLY FILE AFFIDAVITS OF SPOUSAL EQUIVALENCY SHOWING A HISTORY OF LIVING TOGETHER AND COMMINGLING OF ASSETS DIRECTLY WITH THE HUMANRESOURCES DEPARTMENT NOT THEIR SUPERVISORS THE RECORDS ARE KEPT SECRET STILL IT MAY BE SOME TIME BEFORE LARGE CONSERVATIVE CORPORATIONS JOIN THE MOSTLY YOUNG FIRMS OFFERING THE BENEFITS NOW FEW OF THOSE FIRMS WOULD RELISH DOING PUBLIC BATTLE WITH ANTIHOMOSEXUAL GROUPS AS APPLE DID LAST YEAR WHEN OFFICIALS IN WILLIAMSON COUNTY TEXAS INITIALLY REFUSED TO GRANT IT A TAX BREAK BECAUSE OF ITS POLICY WHEN LOTUS ANNOUNCED ITS DOMESTICPARTNER PLAN THERE WERE SOME CUSTOMERS WHO SENT THEIR DISKS IN SAYING YOU PEOPLE ARE SUPPORTING SATAN AND WE'LL NEVER USE YOUR SOFTWARE AGAIN' SAYS POLLY LAURELCHILDHERTIG WHO LOBBIED FOR THE BENEFITS LEVI STRAUSS WAS THREATENED WITH BOYCOTTS AT DISNEY WHERE ABOUT 130 GAY EMPLOYEES ARE PUSHING FOR THE BENEFITS A COMPANY SPOKESMAN SAYS WE AREN'T INCLINED TO PROVIDE MEDICAL BENEFITS FOR PARTNERS WHO HAVE NO LEGAL RELATIONSHIP TO ONE ANOTHER SOME EMPLOYEES BELIEVE THE FAMILYENTERTAINMENT GIANT IS CONCERNED ABOUT MOTTLING ITS WHOLESOME REPUTATION HOW WOULD THIS IMPACT THE CORPORATE IMAGE YOU KNOW THEY MUST BE THINKING SOMETHING AKIN TO THAT SAYS GARRETT HICKS HEAD OF THE GAY GROUP THE DISNEY SPOKESMAN SAYS THE COMPANY'S CONCERNS ARE THE COSTS AS WELL AS THE LEGAL ISSUES INVOLVED HELPING LEAD THE PUSH AT DISNEY IS RICK LEED WHO HEADS THE PRODUCTION COMPANY RESPONSIBLE FOR DISNEY'S MOST SUCCESSFUL TV SHOW HOME IMPROVEMENT SAYS MR LEED DISNEY IS SUPPOSED TO BE A FAMILY COMPANY YET THEY DON'T RECOGNIZE MY FAMILY SOME COMPANIES ALSO WORRY ABOUT PITTING STRAIGHT AND GAY EMPLOYEES AGAINST ONE ANOTHER SINCE MOST OFFER THE BENEFITS ONLY TO SAMESEX COUPLES LOCAL ANTIDISCRIMINATION LAWS GENERALLY PREVENT MUNICIPALITIES AND UNIVERSITIES FROM OFFERING THE BENEFITS ONLY TO GAY COUPLES BUT CORPORATIONS ARE EXEMPT FROM CERTAIN PROVISIONS OF LOCAL ANTIDISCRIMINATION LAWS UNDER THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 OR ERISA MOST JUSTIFY OFFERING THE BENEFITS ONLY TO GAY EMPLOYEES BY REASONING THAT THEY ARE SIMPLY RECTIFYING AN INEQUITY IN MARRIAGE LAWS THE GAYONLY POLICIES THOUGH HAVE CAUSED TENSION AT SOME COMPANIES WHEN ORACLE GAVE DOMESTICPARTNER BENEFITS TO GAY EMPLOYEES LAST YEAR MANY HETEROSEXUALS WERE IN A HUFF SAYS KATE HAFFNER A LESBIAN EMPLOYEE WHO CAMPAIGNED FOR THE BENEFITS SHE SAYS THE RIFT WAS EXACERBATED BECAUSE IN AN UNRELATED MOVE THE SOFTWARE COMPANY IMPLEMENTED A NEW FLEXIBLEBENEFITS PLAN THAT CAUSED AN INCREASE IN SOME WORKERS' CONTRIBUTIONS AND SOME EMPLOYEES MISTAKENLY THOUGHT THE HIGHER CHARGES WERE TO COVER THE NEW BENEFITS FOR GAY PARTNERS OUR COSTS ARE GETTING HIGHER BECAUSE WE'RE GIVING SPECIAL RIGHTS TO HOMOSEXUALS READ ONE OF THE MANY COMMENTS THAT FLOODED THE COMPANY'S ELECTRONICMAIL SYSTEM MS HAFFNER SAYS SOME FIRMS ALSO ARE CONCERNED THAT EMPLOYEES WILL ABUSE THE DOMESTICPARTNER BENEFITS BY SIGNING UP FRIENDS OR A STRING OF PARTNERS MOST COMPANIES TRY TO PREVENT THAT BY REQUIRING THAT THE PARTNERS HAVE LIVED TOGETHER FOR SIX MONTHS OR MORE AND THAT THE EMPLOYEE WAIT UP TO A YEAR BEFORE SIGNING UP A DIFFERENT PARTNER BUT THE DOWNSIDE IS JUST TOO GREAT FOR SOME MAJOR COMPANIES AT&T OFFICIALS FOR EXAMPLE ARE EXPLORING THE ISSUES SAYS SPOKESMAN BURKE STINSON BUT I DON'T SENSE A MOVEMENT YET TOWARD THE GRANTING OF SUCH BENEFITS AT&T'S HUMANRESOURCES DEPARTMENT HAS TOLD THE FIRM'S 1000MEMBER GAYEMPLOYEES GROUP THAT IT WILL HAVE TO CONVINCE MANAGEMENT AND PERHAPS THE BOARD OF DIRECTORS OF THE TANGIBLE BENEFITS OF SUCH AN ARRANGEMENT WE'VE FIGURED OUT THE COSTS BUT IT'S HARDER TO QUANTIFY WHAT BENEFITS THIS WOULD BRING TO THE COMPANY CONCEDES STEVE MERSHON COCHAIRMAN OF THE GAY GROUP'S NATIONAL BENEFITS COMMITTEE WE CAN CITE IMPROVED RECRUITING AND RETENTION BUT THEY ARE VERY HARD TO QUANTIFY IN TERMS OF FINANCES GAY EMPLOYEES THOUGH SAY THEY REWARD FIRMS THAT OFFER THEM BENEFITS WITH FIERCE LOYALTY I FEEL IT'S A VALIDATION OF SORTS SAYS JENNIFER POTEET A MARKETING ASSOCIATE FOR HBO WHOSE LESBIAN PARTNER IS NOW COVERED BY THE COMPANY'S HEALTH INSURANCE AND IT MAKES ME WANT TO STAY HERE A LONG TIME 9403180103 940224 MORALITY AND HOMOSEXUALITY THE FOLLOWING STATEMENT EXCERPTED FROM THE MARCH ISSUE OF FIRST THINGS WAS AUTHORED BY THE RAMSEY COLLOQUIUM A GROUP OF CHRISTIAN AND JEWISH SCHOLARS SPONSORED BY THE INSTITUTE ON RELIGION AND PUBLIC LIFE HOMOSEXUAL BEHAVIOR IS A PHENOMENON WITH A LONG HISTORY TO WHICH THERE HAVE BEEN VARIOUS CULTURAL AND MORAL RESPONSES BUT TODAY IN OUR PUBLIC LIFE THERE IS SOMETHING NEW THAT DEMANDS OUR ATTENTION AND DESERVES A CAREFUL MORAL RESPONSE THE NEW THING IS A GAY AND LESBIAN MOVEMENT THAT VARIOUSLY PRESENTS ITSELF AS AN APPEAL FOR COMPASSION AN EXTENSION OF CIVIL RIGHTS TO MINORITIES AND A CULTURAL REVOLUTION THIS MOVEMENT AGGRESSIVELY PROPOSES RADICAL CHANGES IN SOCIAL BEHAVIOR RELIGION MORALITY AND LAW AS COMMITTED CHRISTIANS AND JEWS WE SHARE THE UNEASINESS OF MOST AMERICANS WITH THE PROPOSALS ADVANCED BY THE GAY AND LESBIAN MOVEMENT AND WE SEEK TO ARTICULATE SOME OF THE REASONS FOR THE LARGELY INTUITIVE AND PREARTICULATE ANXIETY OF MOST AMERICANS REGARDING HOMOSEXUALITY WHILE THE GAY AND LESBIAN MOVEMENT IS INDEED A NEW THING ITS WAY WAS PREPARED BY THE SOCALLED SEXUAL REVOLUTION THAT REVOLUTION IS MOTORED BY PRESUPPOSITIONS THAT OUGHT TO BE CHALLENGED PERHAPS THE KEY PRESUPPOSITION IS THAT HUMAN HEALTH AND FLOURISHING REQUIRE THAT SEXUAL DESIRE UNDERSTOOD AS A NEED BE ACTED UPON AND SATISFIED ANY DISCIPLINE OF DENIAL OR RESTRAINT HAS BEEN POPULARLY DEPICTED AS UNHEALTHY AND DEHUMANIZING WE INSIST HOWEVER THAT IT IS DEHUMANIZING TO DEFINE OURSELVES BY OUR DESIRES ALONE NOR DOES IT SEEM PLAUSIBLE TO SUGGEST THAT WHAT MILLENNIA OF HUMAN EXPERIENCE HAVE TAUGHT US TO REGARD AS SELFCOMMAND SHOULD NOW BE DISMISSED AS MERE REPRESSION AT THE SAME TIME THAT THE PLACE OF SEX HAS BEEN GROTESQUELY EXAGGERATED BY THE SEXUAL REVOLUTION IT HAS ALSO BEEN TRIVIALIZED THE MYSTERIES OF HUMAN SEXUALITY ARE COMMONLY REDUCED TO MATTERS OF RECREATION OR TASTE NOT UNLIKE ONE'S PREFERENCES IN DIET DRESS OR SPORT THIS PECULIAR MIX OF THE EXAGGERATED AND THE TRIVIALIZED MAKES IT POSSIBLE FOR THE GAY AND LESBIAN MOVEMENT TO DEMAND SIMULTANEOUSLY A RESPECT FOR WHAT IS CLAIMED TO BE MOST CONSTITUTIVELY TRUE OF HOMOSEXUALS AND TOLERANCE FOR WHAT IS AFTER ALL SIMPLY A DIFFERENCE IN LIFESTYLE IT IS IMPORTANT TO RECOGNIZE THE LINKAGES AMONG THE COMPONENT PARTS OF THE SEXUAL REVOLUTION PERMISSIVE ABORTION WIDESPREAD ADULTERY EASY DIVORCE RADICAL FEMINISM AND THE GAY AND LESBIAN MOVEMENT HAVE NOT BY ACCIDENT APPEARED AT THE SAME HISTORICAL MOMENT THEY HAVE IN COMMON A DECLARED DESIRE FOR LIBERATION FROM CONSTRAINT ESPECIALLY CONSTRAINT ASSOCIATED WITH AN ALLEGEDLY OPPRESSIVE CULTURE AND RELIGIOUS TRADITION THEY ALSO HAVE IN COMMON THE PRESUPPOSITION THAT THE BODY IS LITTLE MORE THAN AN INSTRUMENT FOR THE FULFILLMENT OF DESIRE AND THAT THE FULFILLMENT OF DESIRE IS THE ESSENCE OF THE SELF FINALLY THEY ALL REST ON A DOCTRINE OF THE AUTONOMOUS SELF WE BELIEVE IT IS A FALSE DOCTRINE THAT LEADS NEITHER TO INDIVIDUAL FLOURISHING NOR TO SOCIAL WELLBEING MARRIAGE AND THE FAMILY HUSBAND WIFE AND CHILDREN JOINED BY PUBLIC RECOGNITION AND LEGAL BOND ARE THE MOST EFFECTIVE INSTITUTIONS FOR THE REARING OF CHILDREN FOR THE DIRECTING OF SEXUAL PASSION AND FOR HUMAN FLOURISHING IN COMMUNITY AT THE SAME TIME IT REMAINS TRUE THAT THERE ARE LEGITIMATE AND HONORABLE FORMS OF LOVE OTHER THAN MARRIAGE INDEED ONE OF THE GOODS AT STAKE IN TODAY'S DISPUTES IS A LONGHONORED TRADITION OF FRIENDSHIP BETWEEN MEN AND MEN WOMEN AND WOMEN WOMEN AND MEN IN THE CURRENT CLIMATE IT BECOMES IMPERATIVE TO AFFIRM THE REALITY AND BEAUTY OF SEXUALLY CHASTE RELATIONSHIPS WE DO NOT ACCEPT THE NOTION THAT SELFCOMMAND IS AN UNHEALTHY FORM OF REPRESSION ON THE PART OF SINGLE PEOPLE WHETHER THEIR INCLINATION IS HETEROSEXUAL OR HOMOSEXUAL PUT DIFFERENTLY THE CHOICE IS NOT LIMITED TO HETEROSEXUAL MARRIAGE ON THE ONE HAND AND RELATIONSHIPS INVOLVING EXTRAMARITAL OR HOMOGENITAL SEX ON THE OTHER WE CANNOT SETTLE THE DISPUTE ABOUT THE ROOTS GENETIC OR ENVIRONMENTAL OF HOMOSEXUAL ORIENTATION ALTHOUGH SOME SCIENTIFIC EVIDENCE SUGGESTS A GENETIC PREDISPOSITION WE MUST STILL ASK WHETHER SUCH A PREDISPOSITION SHOULD BE ACTED ON OR WHETHER IT SHOULD BE RESISTED IN A FALLEN CREATION MANY QUITE COMMON ATTITUDES AND BEHAVIORS MUST BE STRAIGHTFORWARDLY DESIGNATED AS SIN ALTHOUGH WE ARE EQUAL BEFORE GOD WE ARE NOT BORN EQUAL IN TERMS OF OUR STRENGTHS AND WEAKNESSES OUR TENDENCIES AND DISPOSITIONS OUR NATURE AND NURTURE WE CANNOT UTTERLY CHANGE THE HAND WE HAVE BEEN DEALT BY INHERITANCE AND FAMILY CIRCUMSTANCES BUT WE ARE RESPONSIBLE FOR HOW WE PLAY THAT HAND INCLINATION AND TEMPTATION ARE NOT SINFUL ALTHOUGH THEY SURELY RESULT FROM HUMANITY'S FALLEN CONDITION SIN OCCURS IN THE JOINING OF THE WILL FREELY AND KNOWINGLY TO AN ACT OR WAY OF LIFE THAT IS CONTRARY TO GOD'S PURPOSE RELIGIOUS COMMUNITIES IN PARTICULAR MUST LOVINGLY SUPPORT ALL THE FAITHFUL IN THEIR STRUGGLE AGAINST TEMPTATION WHILE AT THE SAME TIME INSISTING PRECISELY FOR THE SAKE OF THE FAITHFUL ON THE SINFULNESS OF THE HOMOGENITAL AND EXTRAMARITAL HETEROSEXUAL BEHAVIOR TO WHICH SOME ARE DRAWN SINCE THERE ARE GOOD REASONS TO SUPPORT THE HETEROSEXUAL NORM SINCE IT HAS BEEN DEVELOPED WITH GREAT DIFFICULTY AND SINCE IT CAN BE MAINTAINED ONLY IF IT IS CARED FOR AND SUPPORTED WE CANNOT BE INDIFFERENT TO ATTACKS UPON IT THE SOCIAL NORMS BY WHICH SEXUAL BEHAVIOR IS INCULCATED AND CONTROLLED ARE OF URGENT IMPORTANCE FOR FAMILIES AND FOR SOCIETY AS A WHOLE ADVOCATES OF THE GAY AND LESBIAN MOVEMENT HAVE THE RESPONSIBILITY TO SET FORTH PUBLICLY THEIR ALTERNATIVE PROPOSALS THIS MEANS MORE THAN CALLING FOR LIBERATION FROM ESTABLISHED STANDARDS THEY MUST CLARIFY FOR ALL OF US HOW SEXUAL MORES ARE TO BE INCULCATED IN THE YOUNG WHO ARE PARTICULARLY VULNERABLE TO SEDUCTION AND SOLICITATION PUBLIC ANXIETY ABOUT HOMOSEXUALITY IS PREEMINENTLY A CONCERN ABOUT THE VULNERABILITIES OF THE YOUNG THIS WE ARE PERSUADED IS A MATTER OF LEGITIMATE AND URGENT PUBLIC CONCERN GAY AND LESBIAN ADVOCATES SOMETIMES CLAIM THAT THEY ARE ASKING FOR NO MORE THAN AN END TO DISCRIMINATION DRAWING AN ANALOGY WITH THE EARLY CIVILRIGHTS MOVEMENT THE ANALOGY IS UNCONVINCING AND MISLEADING DIFFERENCES OF RACE ARE IN ACCORD WITH NOT CONTRARY TO OUR NATURE AND SUCH DIFFERENCES DO NOT PROVIDE JUSTIFICATION FOR BEHAVIOR THAT IS OTHERWISE UNACCEPTABLE CERTAIN DISCRIMINATIONS ARE IN FACT NECESSARY WITHIN SOCIETY IT IS NOT TOO MUCH TO SAY THAT CIVILIZATION ITSELF DEPENDS ON THE MAKING OF SUCH DISTINCTIONS BETWEEN FINALLY RIGHT AND WRONG IN OUR PUBLIC LIFE SOME DISCRIMINATION IS IN ORDER WHEN FOR EXAMPLE IN EDUCATION AND PROGRAMS INVOLVING YOUNG PEOPLE THE INTENT IS TO PREVENT PREDATORY BEHAVIOR THAT CAN TAKE PLACE UNDER THE GUISE OF SUPPORTING YOUNG PEOPLE IN THEIR ANXIETIES ABOUT THEIR SEXUAL IDENTITY IT IS NECESSARY TO DISCRIMINATE BETWEEN RELATIONSHIPS GAY AND LESBIAN DOMESTIC PARTNERSHIPS FOR EXAMPLE SHOULD NOT BE SOCIALLY RECOGNIZED AS THE MORAL EQUIVALENT OF MARRIAGE MARRIAGE AND THE FAMILY ARE INSTITUTIONS NECESSARY FOR OUR CONTINUED SOCIAL WELLBEING IN AN INDIVIDUALISTIC SOCIETY THAT TENDS TO LIBERATION FROM ALL CONSTRAINT THEY ARE FRAGILE INSTITUTIONS IN NEED OF CAREFUL AND CONTINUING SUPPORT TO ENDURE TOLERANCE TO PITY COMPASSION TO EMBRACE AFFIRMATION THAT IS THE SEQUENCE OF CHANGE IN ATTITUDE AND JUDGMENT THAT HAS BEEN ADVANCED BY THE GAY AND LESBIAN MOVEMENT WITH NOTABLE SUCCESS WE EXPECT THAT THIS SUCCESS WILL ENCOUNTER CERTAIN LIMITS AND THAT WHAT IS TRULY NATURAL WILL REASSERT ITSELF BUT THIS MAY NOT HAPPEN BEFORE MORE DAMAGE IS DONE TO INNUMERABLE INDIVIDUALS AND TO OUR COMMON LIFE SEE RELATED LETTERS LETTERS TO THE EDITOR A DIATRIBE OF INTOLERANCE WSJ MARCH 3 1994 SEE RELATED LETTER LETTERS TO THE EDITOR THE ASSAULT ON HETEROSEXUALITY WSJ MARCH 18 1994 9402240124 9403030062 YY94 MM03 YY94 MM03 9403180088 940215 LETTERS TO THE EDITOR ANTIABORTIONIST TACTICS ANYTHING BUT PEACEFUL' I WONDER IF PROF BRUCE LEDEWITZ REALIZED THAT HE USED THE PHRASE ILLEGAL BUT ESSENTIALLY PEACEFUL THREE TIMES DURING HIS FEB 2 RULE OF LAW COLUMN RICO'S LATEST VICTIM SOCIAL PROTEST I FELT AS THOUGH HE WERE TRYING TO CONVINCE EITHER HIMSELF OR THE READER THAT WHAT ANTIABORTIONISTS DO AT CLINICS IS PEACEFUL AS HE ACKNOWLEDGED THE ANTIABORTION DEMONSTRATIONS GO BEYOND THE FIRST AMENDMENT AND INTO PROPERTY TRESPASS I ADD THAT THEY ALSO INFLICT EMOTIONAL DURESS ONTO FELLOW HUMAN BEINGS THE ABORTION DECISION IS NOT AN EASY ONE TO MAKE FOR MOST WOMEN IT COMES ONLY AFTER LONG HOURS OF SELFQUESTIONING DOUBT AND EXAMINATION TO BE HARASSED AT THE END OF SUCH A JOURNEY IS FAR FROM PEACEFUL WHATEVER FORM THE HARASSMENT TAKES UNFORTUNATELY PROPONENTS OF FREE CHOICE HAVE LITTLE TO WORK WITH TO HELP PROTECT A WOMAN'S RIGHT TO HEALTH CARE I HOPE THAT THE NEAR FUTURE WILL PROVIDE MORE TOOLS FOR PROCHOICE PEOPLE TO USE AGAINST THESE VIOLATORS SO THAT USING RICO WILL NOT BE NECESSARY THE QUESTION OF WHEN LIFE BEGINS IS A PERSONAL AND OFTEN RELIGIOUSBASED BELIEF AMERICA WAS BUILT TO SHELTER PEOPLE FROM HAVING TO LIVE BY ANYONE ELSE'S RELIGIOUS BELIEFS LET'S KEEP IT THAT WAY SEE RELATED LETTER LETTERS TO THE EDITOR TWO BIG MYTHS ABOUT ABORTION WSJ MARCH 18 1994 9402150053 YY94 MM03 9403170172 940317 TECHNOLOGY DIGITAL CUTS COMPUTER PRICES MAYNARD MASS DIGITAL EQUIPMENT CORP REDUCED US PRICES ON SOME PERSONAL COMPUTERS NOTEBOOK SYSTEMS AND OPTIONS IN ITS XL AND MTE LINES BY AS MUCH AS 20 THE MOVE FOLLOWS THE ANNOUNCEMENT OF NEW PRODUCTS AND EXPANSION OF DISTRIBUTION CHANNELS AND CONTINUES THE COMPANY'S STRATEGY OF AGGRESSIVE PRICING 9403170171 940317 GM'S EDS UNIT GETS CONTRACT DALLAS ELECTRONIC DATA SYSTEMS CORP WON A 10YEAR COMPUTERSERVICES CONTRACT FROM USTRAVEL A CLOSELY HELD TRAVEL AGENCY BASED IN ROCKVILLE MD TERMS WEREN'T DISCLOSED UNDER THE PACT EDS A UNIT OF GENERAL MOTORS CORP WILL MANAGE USTRAVEL'S VOICE AND DATA NETWORKS AND HELP DESIGN RESERVATION AND TICKETING SYSTEMS 9403170170 940317 PRICE/COSTCO SALES RISE KIRKLAND WASH PRICE/COSTCO INC SAID SALES FOR THE FOUR WEEKS ENDED MARCH 13 ROSE 8 TO 115 BILLION FROM 106 BILLION A YEAR AGO THE CLUBWAREHOUSE OPERATOR SAID SALES AT STORES OPEN AT LEAST A YEAR FELL 1 FOR THE FOURWEEK PERIOD FOR THE 28 WEEKS ENDED MARCH 13 TOTAL SALES ROSE 7 TO 876 BILLION FROM 822 BILLION A YEAR AGO SALES AT STORES OPEN A YEAR OR MORE FELL 3 9403170169 940317 WEDNESDAY'S MARKETS BOND PRICES SOAR AGAIN ON REPORT INDUSTRIALS END LOWER AS BIG SELL PROGRAM HITS STOCKS AT CLOSE BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES SOARED AFTER ANOTHER GOVERNMENT REPORT SHOWED THAT INFLATION REMAINS IN CHECK STOCKS AND THE DOLLAR WERE MIXED THE DOW JONES INDUSTRIAL AVERAGE FELL 144 POINTS TO 384815 THE INDEX OF 30 BLUE CHIP STOCKS WAS UP MORE THAN 15 POINTS AT ONE STAGE DURING THE AFTERNOON BUT A BIG COMPUTERGUIDED SELL PROGRAM HIT THE INDUSTRIAL AVERAGE A MINUTE BEFORE THE MARKET CLOSED ROBBING IT OF 1355 POINTS ACCORDING TO BIRINYI ASSOCIATES A FINANCIALSERVICES FIRM STANDARD & POOR'S 500STOCK INDEX CLIMBED 241 TO 46942 AND THE NASDAQ COMPOSITE INDEX ROSE 547 TO 79899 STOCK PRICES GAINED AS THE YIELD ON THE TREASURY'S 30YEAR BOND DROPPED TO 679 FROM 687 TUESDAY BEHIND THE BOND MARKET RALLY WAS A LABOR DEPARTMENT REPORT SHOWING CONSUMER PRICES CLIMBED 03 LAST MONTH THE CORE RATE OF INFLATION WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY COMPONENTS ALSO ROSE 03 WHETHER YOU LOOK AT THE TOTAL CPI OR THE CORE RATE ON A YEARTOYEAR BASIS THE INFLATION RATE IS 03 PERCENTAGE POINT BELOW LAST YEAR'S SAID EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE THAT SUGGESTS LAST YEAR'S GOOD INFLATION NEWS IS NOT OVER STILL MR YARDENI CONCEDED THAT IT MAY TAKE SEVERAL MORE MONTHS OF FAVORABLE INFLATION REPORTS BEFORE BOND INVESTORS ARE CONVINCED ENOUGH TO PUSH INTEREST RATES SHARPLY LOWER THE MARKET IS LOCKED INTO THE PERCEPTION THAT INFLATION IS GOING TO GET WORSE RATHER THAN THE REALITY THAT INFLATION IS IMPROVING HE SAID AT SOME POINT THE EVIDENCE IS GOING TO BE TOO COMPELLING TO IGNORE WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 042 TO 11646 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3061 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1346 ISSUES ADVANCED AND 803 DECLINED BOND PRICES RALLIED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE NEARLY A POINT OR ALMOST 10 FOR EACH 1000 FACE AMOUNT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16885 MARKS AND 10607 YEN COMPARED WITH 16965 MARKS AND 10600 YEN TUESDAY 9403170168 940317 STONE ENERGY COMPLETES WELL LAFAYETTE LA STONE ENERGY CORP SAID IT COMPLETED A NATURALGAS DISCOVERY WELL OFF THE COAST OF LOUISIANA THE OIL AND NATURALGAS COMPANY SAID ITS STATE LEASE 14430 NO 1 WELL TESTED AT A RATE OF 61 MILLION CUBIC FEET OF NATURAL GAS A DAY FROM A HORIZONTAL LINE ABOUT 400 FEET LONG AT A VERTICAL DEPTH OF 2290 FEET STONE ENERGY WHICH OPERATES THE WELL AND OWNS A 100 WORKING INTEREST IN IT SAID IT EXPECTS TO PLACE THE WELL ON PRODUCTION IN JUNE 9403170167 940317 MANATRON CHIEF'S PURCHASE KALAMAZOO MICH MANATRON INC SAID ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER ALLEN F PEAT COMPLETED A 21 MILLION PRIVATE PURCHASE OF 430000 SHARES OR 156 OF THE COMPANY'S COMMON STOCK MR PEAT SAID HE PURCHASED THE SHARES FROM MANATRON'S VICE PRESIDENT AND DIRECTOR RONALD D STOYNOFF BECAUSE HE EXPECTS PROFITABILITY TO IMPROVE AT THE SOFTWARE MAKER 9403170166 940317 IVACO INC PLANS OFFERING MONTREAL IVACO INC SAID IT WILL SELL 3640000 CLASS A SUBORDINATE VOTING SHARES TO A GROUP OF UNDERWRITERS FOR 309 MILLION CANADIAN DOLLARS US226 MILLION OR C850 A SHARE THE OFFERING IS EXPECTED TO CLOSE ABOUT APRIL 6 SUBJECT TO REGULATORY APPROVAL IVACO SAID IT WILL USE THE PROCEEDS TO REPAY BANK DEBT AND FOR INVESTMENT IN ITS BUSINESS THE STEELMAKER CURRENTLY HAS 181 MILLION CLASS A SHARES AND 68 MILLION CLASS B SHARES OUTSTANDING 9403170164 940317 INTERNATIONAL WESTERN GERMAN PRICES RISE WIESBADEN GERMANY WESTERN GERMAN WHOLESALE PRICES ROSE 05 IN FEBRUARY FROM JANUARY AND WERE UP 03 FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE REPORTED THE FEBRUARY DATA CAME IN MUCH HIGHER THAN EXPECTED A SURVEY OF EIGHT ANALYSTS BY APDOW JONES CALLED FOR WHOLESALE PRICES TO RISE 02 FROM JANUARY AND TO HAVE REMAINED UNCHANGED FROM FEBRUARY 1993 9403170163 940317 WORLD MARKETS TOKYO STOCK PRICES CLIMB TO A SIXMONTH HIGH LONDON SHARES FALL BUFFETED BY ECONOMIC DATA A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS GAINED STRONGLY WEDNESDAY TAKING THE BENCHMARK INDEX TO ITS HIGHEST FINISH IN SIX MONTHS AS OVERSEAS INVESTORS BOUGHT SHARES THAT HAVE BEEN LAGGARDS RECENTLY IN LONDON SHARES LOST GROUND AS HOPES OF A CUT IN INTEREST RATES FADED BECAUSE OF FRESH BRITISH ECONOMIC DATA FRANKFURT PRICES ROSE FOR THE THIRD DAY IN A ROW WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11646 UP 042 REFLECTING HIGHER AMERICAN AND ASIA/PACIFIC MARKETS AND FLAT EUROPEAN MARKETS FOOTWEAR STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9156 UP 312 OR 35 WITH NIKE OF THE US POSTING AN 85 GAIN IN ITS LOCAL CURRENCY TOBACCO STOCKS TRAILED AT 8083 DOWN 085 OR 1 WITH RICHEMONT OF SWITZERLAND SLIDING 36 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 1730 POINTS TUESDAY CLIMBED 16892 TO 2067777 IN TRADING THURSDAY THE NIKKEI FELL 11671 POINTS TO CLOSE THE MORNING SESSION AT 2056106 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A BRISK 620 MILLION SHARES UP FROM 5615 MILLION SHARES A DAY EARLIER GAINERS TROUNCED LOSERS 735314 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 307 POINTS TUESDAY ROSE 1033 TO 165327 THE NIKKEI SEESAWED THROUGHOUT THE SESSION AS ARBITRAGE BUYING ON STRONG STOCKINDEX FUTURES TUSSLED WITH PROFITTAKING OVERSEAS INVESTORS HELPED TO LIFT THE MARKET BY BUYING RECENTLY DEPRESSED STOCKS SUCH AS CHEMICAL TEXTILE AND STEEL ISSUES FOREIGN BUYERS WERE A BIT MORE OPTIMISTIC ABOUT ECONOMIC RECOVERY IN JAPAN BODING WELL FOR THE MARKET IN THE FISCAL YEAR THAT STARTS APRIL 1 A PRESSURE POINT EASED BECAUSE TOKKIN SPECIFIED MONEY TRUSTS AND INVESTMENT TRUST FUNDS CLOSED THEIR BOOKS FOR THE FISCAL YEAR FOLLOWING RECENT SELLING TO DRESS UP THEIR PORTFOLIOS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 245 POINTS TO 32429 FRACTIONALLY ABOVE THE INTRADAY LOW THE FT 30STOCK INDEX DROPPED 165 POINTS TO 25528 VOLUME WAS 6255 MILLION SHARES COMPARED WITH 6163 MILLION SHARES A DAY EARLIER FOLLOWING BIG GAINS EARLIER THIS WEEK MANY INVESTORS SNAGGED PROFITS BRITISH ECONOMIC DATA FOR FEBRUARY RELEASED EARLY IN THE SESSION SHOWED A SLIDE IN UNEMPLOYMENT AND RETAIL SALES BUT AN INCREASE IN AVERAGE EARNINGS THE POSITIVE EFFECT THAT LOWER RETAIL SALES FIGURES WOULD HAVE HAD ON HOPES FOR A BRITISH BASE LENDINGRATE CUT WAS ERASED BY THE THE JOBLESS AND EARNINGS STATISTICS SENTIMENT ALSO WAS DAMPED BY A SMALLERTHANEXPECTED CUT BY THE GERMAN CENTRAL BANK IN ITS REPURCHASE RATE WHICH DISCOURAGED INVESTORS WHO HAVE BEEN HOPING FOR REDUCTIONS IN KEY EUROPEAN INTEREST RATES THOUGH US INFLATION DATA FOR FEBRUARY WAS IN LINE WITH EXPECTATIONS WALL STREET WAS SOFT IN EARLY DEALINGS ADDING TO PRESSURE ON STOCKS IN LONDON IN FRANKFURT THE DAX 30STOCK INDEX ROSE 714 POINTS TO 217273 THE MARKET SHRUGGED OFF THE BUNDESBANK'S EASING OF ITS LOWEST ACCEPTED RATE FOR SECURITIES REPURCHASE AGREEMENTS FINANCIAL SHARES BENEFITED MOST FROM CONTINUED RATECUT HOPES AS THE CENTRAL BANK WAS SCHEDULED TO CONSIDER MONETARY POLICY TODAY IN PARIS STOCKS WEAKENED AS INVESTORS TOOK PROFITS AS EXPECTED ON SIZABLE GAINS LOGGED IN THE PREVIOUS TWO SESSIONS PARTICIPANTS ALSO WERE DISAPPOINTED BY THE BUNDESBANK'S MEAGER RATE CUT IN MILAN SHARES FELL IN TECHNICALLY DOMINATED DEALINGS ON THE LAST DAY OF THE MARCH TRADING ACCOUNT STILL THE UNDERLYING TONE REMAINED POSITIVE WITH THE EXPECTATION THAT EUROPEAN INTEREST RATES WOULD DECLINE IN MADRID EQUITIES FELL AS PROFITTAKING SET IN AFTER TWO DAYS OF LARGE GAINS IN ZURICH SHARES SLIPPED IN MODERATE TRADING WITH INTERESTRATE WORRIES AND TECHNICAL FACTORS CONTRIBUTING TO THE SOUR MOOD IN HONG KONG SHARES SLUMPED 14 SETTING A CLOSING LOW FOR THIS YEAR ON CONTINUED PROFITTAKING PRICES ROSE INITIALLY BUT FELL THROUGHOUT THE SESSION TO FINISH AT THE WEAKEST POINT SINCE MIDDECEMBER IN TAIPEI STOCKS GAINED 11 CANCELING OUT AN IDENTICAL PERCENTAGE LOSS THE PREVIOUS DAY THE BROADBASED RALLY CAME IN THIN TRADING LED BY DOMESTIC INSTITUTIONAL INVESTORS' BUYING OF BLUE CHIPS FOREIGN INSTITUTIONS GENERALLY WERE SIDELINED AWAITING DIRECTION AMID THE RECENT CONSOLIDATION IN MANILA EQUITIES CLOSED FIRMER IN LIGHT VOLUME BOOSTED BY LATE BOTTOMFISHING IN SEOUL THE MAIN INDEX FELL AMID CONTINUED BEARISHNESS THOUGH ADVANCING ISSUES OUTNUMBERED DECLINERS WITH BANK STOCKS AMONG THE STRONGEST ON EXPECTATIONS FOR OFFERINGS OF RIGHTS ISSUES AMONG CORPORATE DEVELOPMENTS IN LONDON TARMAC ROSE 3 PENCE TO 194 PENCE 289 THE BUILDING MATERIALS AND CONSTRUCTION COMPANY WILL OVERHAUL ITS US OPERATIONS IN A COSTCUTTING MOVE AND WILL PUMP 100 MILLION 1491 MILLION OVER THREE YEARS INTO A CAPITAL INVESTMENT PROGRAM TO RAISE PRODUCTIVITY AND EARNINGS 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 9403170160 940317 IN THE LAB CELLS TRICKED' TO MAKE SKIN FOR BURN CASES BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL LA JOLLA CALIF VICTIMS OF SEVERE BURNS FACE LONG PAINFUL AND COSTLY TREATMENTS THAT INVOLVE GRAFTING HEALTHY SKIN FROM ELSEWHERE ON THEIR BODIES IT USUALLY LEAVES THEM HORRIBLY SCARRED IF THEY ARE LUCKY ENOUGH TO SURVIVE SEVERAL SMALL BIOTECHNOLOGY COMPANIES THOUGH ARE TESTING A VARIETY OF MANMADE SKIN REPLACEMENT PRODUCTS THAT ONE DAY COULD REVOLUTIONIZE THE COMPLEX MEDICAL SCIENCE OF WOUND HEALING CUT DOWN ON SCARRING AND IMPROVE THE LIVES OF BURN VICTIMS AND SUFFERERS OF OTHER SERIOUS SKIN AILMENTS WOUND HEALING IS A TRICKY SCIENCE THAT HAS STYMIED OTHER EFFORTS TO DEVELOP NEW TREATMENTS FOR INSTANCE AMGEN INC WHOSE BIOTECHNOLOGY SUCCESS IS LEGENDARY STOPPED HUMAN TRIALS OF A ONCEPROMISING TISSUEGROWTH FACTOR AFTER THE TESTS PROVED DISAPPOINTING ADVANCED TISSUE SCIENCES INC HOPES IT HAS CRACKED THE PROBLEM WITH A SYSTEM OF GROWING HUMAN SKIN CELLS IN SMALL PLASTIC CARTRIDGES AT THE COMPANY'S LABORATORY TALL INCUBATOR CHAMBERS HOLD BANKS OF THE CARTRIDGES LINKED TOGETHER BY A WEB OF TINY TUBES THINNER THAN A VIDEOCASSETTE EACH CARTRIDGE IS A MINIATURE FACTORY GROWING HUMAN SKIN CELLS THE FOREBEARS OF THESE CELLS COME FROM INFANT FORESKINS THESE CELLS CALLED FIBROBLASTS ARE SEEDED ONTO A FLAT PIECE OF MESH MATERIAL AFTER A FEW WEEKS THE NEW CELLS COVER THE FISHNETLIKE HOLES FORMING A THREEDIMENSIONAL PATCH THE CASES ARE SUPPOSED TO SHUT OUT CONTAMINANTS UNTIL A SURGEON OPENS THE LID TO GRAFT THE PATCH ONTO A PATIENT WE'RE TRYING TO TRICK THE CELLS INTO THINKING THEY ARE GROWING IN THE BODY SAYS ARTHUR J BENVENUTO ADVANCED TISSUE SCIENCES'S SOFTSPOKEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE TUBES DELIVER A NUTRIENT SOUP TO THE CELLS IN A CONTINUOUS FLOW THAT MIMICS THE WAY TISSUE IS FED BY THE BLOOD HE SAYS ONCE THE MESH IS FILLED IN WITH NEW CELLS THE CASSETTES COULD BE READIED FOR SHIPPING THE PRODUCT IS EXPECTED TO HAVE AS MUCH AS A ONEYEAR SHELF LIFE IN AN ULTRACOLD FREEZER A MANMADE SKIN PRODUCT WOULD HAVE WIDE APPLICATIONS OF TWO MILLION SERIOUSBURN VICTIMS IN THE US EACH YEAR AS MANY AS 15000 NEED SKIN GRAFTS ADVANCED TISSUE IS DEVELOPING A PERMANENT REPLACEMENT FOR THE DERMIS THE THICK INNER LAYER OF SKIN BUT IT IS ALSO WORKING ON TEMPORARY REPLACEMENTS YESTERDAY THE COMPANY SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO START HUMAN TESTS OF SUCH A TEMPORARY REPLACEMENT PRODUCT IN SEVERE BURN CASES TODAY SURGEONS USE CADAVER SKIN AS A LIFESAVING STOPGAP TO KEEP OUT INFECTION AND PREVENT VITALFLUID LOSS THE HOPE IS THAT PATCHES OF THE PATIENT'S OWN SKIN ESPECIALLY PRECIOUS IN MAJOR BURN CASES CAN EVENTUALLY BE GRAFTED ONTO THE WOUNDS BEFORE THE CADAVER SKIN IS REJECTED WHILE THE PATIENT'S HEALTHY SKIN REPLENISHES ITSELF FOR THE NEXT GRAFT THE CADAVER SKIN SOMETIMES MUST BE REPEATEDLY REPLACED OVER MANY WEEKS OR MONTHS THERE ARE TREMENDOUS NUMBERS OF COMPLICATIONS SAYS JOHN F HANSBROUGH DIRECTOR OF THE REGIONAL BURN CENTER AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO CADAVER SKIN MAY CONTAIN HIV OR OTHER DEADLY VIRUSES AND SOMETIMES SIMPLY DOESN'T WORK HE SAYS THE AMERICAN RED CROSS ESTIMATES THAT ONLY ONESIXTH OF THE SKIN NEEDED FOR BURN VICTIMS IS AVAILABLE FROM THE NATION'S TISSUE BANKS DR HANSBROUGH AND ADVANCED TISSUE PREDICT THE TRANSITIONAL COVERING THEY'RE WORKING ON TOGETHER WILL BE AS GOOD AS OR BETTER THAN CADAVER SKIN INSTEAD OF SUTURE MATERIAL USED IN PERMANENT SKIN WHICH EVENTUALLY DISSOLVES THE TEMPORARY PRODUCT'S SCAFFOLDING IS MADE OF A NYLON MESH WITH A TOP LAYER OF SILICONE THAT ACTS AS THE EPIDERMIS OR OUTER LAYER OF SKIN WITHOUT THE SYNTHETIC EPIDERMIS THE DERMAGRAFT WOULD JUST DRY OUT DR HANSBROUGH SAYS HAVING A TEMPORARY MANMADE COVERING READILY AVAILABLE WOULD LIKELY EASE THE LONG HOSPITAL STAYS AND ENORMOUS COSTS THAT BURN PATIENTS FACE CADAVER SKIN PRICED AT AS MUCH AS 1000 A SQUARE FOOT COMES IN THIN STRIPS THAT MUST BE SEWN TOGETHER LIKE A JIGSAW PUZZLE DR HANSBROUGH SAYS MANMADE SKIN COULD BE GROWN IN VARIOUS SIZES TO FIT DIFFERENT INJURIES THE COMPANY HAS MADE THE PERMANENT VERSION OF DERMAGRAFT IN SMALL QUANTITIES FOR SEVERAL YEARS AND THE RESULTS IN TREATING ABOUT 375 PATIENTS HAVE BEEN PROMISING ON A GAMBLE THAT REGULATORY APPROVAL FOR AT LEAST ONE OF ITS PRODUCTS WILL COME IN A YEAR OR TWO THE COMPANY IS ALREADY BUILDING A COMMERCIAL PLANT IT SHOULD BE READY FOR FDA INSPECTION TOWARD YEAR'S END OTHERS WHO MIGHT USE DERMAGRAFT ARE THE 26 MILLION PEOPLE WHO SUFFER FROM CHRONIC SLOWHEALING OR NONHEALING SKIN ULCERS IN ADVANCED TISSUE'S TESTS A PIECE OF DERMAGRAFT IS PLUGGED INTO THE WOUND TO PROMOTE THE OVERGROWTH OF THE PATIENT'S OWN EPIDERMIS LOOKING AHEAD A FEW YEARS ADVANCED TISSUE'S AMBITION IS TO PRODUCE A UNIVERSAL FULLTHICKNESS SKIN THAT WILL WORK IN ALL PATIENTS SAYS GAIL K NAUGHTON ONE OF DERMAGRAFT'S INVENTORS AND THE CHIEF OPERATING OFFICER OF ADVANCED TISSUE THE COMPANY IS ALREADY COLLABORATING WITH CELL GENESYS INC A FOSTER CITY CALIF BIOTECH COMPANY ON A GENETICALLY MODIFIED EPIDERMIS TO SOLVE THE REJECTION PROBLEM THE MAKING OF DERMAGRAFT STARTS IN A COMPANY LAB WITH THE SEPARATION OF FIBROBLAST CELLS FROM DONATED INFANT FORESKINS THE MOTHER'S HEALTH HISTORY IS TAKEN AND THE CELLS ARE TESTED TO MAKE SURE THEY ARE NORMAL AND VIRUSFREE THEN THEY ARE STORED IN GLASS VIALS AND FROZEN IN LIQUID NITROGEN AT ABOUT MINUS 300 DEGREES FAHRENHEIT AFTER THAWING TECHNICIANS DRESSED HEADTOTOE IN WHITE PROTECTIVE BUNNY SUITS TRANSFER THE CELLS INTO PLASTIC BOTTLES LAID SIDEWAYS ON A SLOWLY ROTATING DECK THE FIBROBLASTS ATTACH TO THE SIDES OF THE BOTTLES AND START GROWING AND DIVIDING AFTER THE WALLS ARE LINED WITH CELLS THEY ARE REDISTRIBUTED AMONG MORE BOTTLES EIGHT OF THESE PASSAGES LATER THE NUMBER OF FIBROBLASTS HAS MULTIPLIED MANY TIMES OVER THEN THE CELLS ARE HARVESTED AND PUMPED INTO THE CARTRIDGES BUT BEFORE THE CARTRIDGES CAN BE USED COMMERCIALLY ADVANCED TISSUE MUST PROVE TO THE FDA THAT ITS PRODUCT TRULY BEHAVES LIKE LIVING SKIN WHEN USED IN A PATIENT ADVANCED TISSUE AND DR HANSBROUGH HOPE TO START THEIR HUMAN TESTS OF THE TEMPORARY DERMAGRAFT COVERING WITHIN SEVERAL WEEKS THE ONLY WAY TO TELL IF IT WORKS IN HUMANS IS TO TRY IT DR HANSBROUGH SAYS AFTER WE START WE'LL KNOW IN A MONTH OR TWO 9403170158 940317 INTERNATIONAL SOUTH AFRICANS FIND SYMBOLS OF UNITY AMID DIFFERENCES WHILE A NEW FLAG REPRESENTS CONVERGENCE 2 SEPARATE OLD ANTHEMS WILL PERSIST BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL PRETORIA SOUTH AFRICA SOUTH AFRICA'S TRANSITION TO MULTIRACIAL DEMOCRACY APPEARS THREATENED BY DIFFERENCES OVER THE NEW CONSTITUTION BUT THE COUNTRY'S WHITE AND BLACK LEADERS HAVE FOUND SOMETHING TO AGREE ON HOW THE NEW SOUTH AFRICA SHOULD BE REPRESENTED ON FLAGPOLES AND HAILED IN SONG AFTER MONTHS OF POLEMICS THE TRANSITIONAL EXECUTIVE COUNCIL A MULTIRACIAL BODY OVERSEEING THE WHITE GOVERNMENT UNTIL THE APRIL 2628 ELECTIONS HAS UNVEILED A NEW FLAG AND DECIDED THE COUNTRY WILL HAVE TWO NATIONAL ANTHEMS AT LEAST FOR A WHILE THE NEW PARLIAMENT COULD CHOOSE TO REOPEN THE ISSUE THE SOLOMONIC VERDICT AVERTS THE POSSIBILITY THAT THE COUNTRY'S NEXT PRESIDENT IN ALL LIKELIHOOD NELSON MANDELA COULD BE INAUGURATED WITHOUT ANY ANTHEM BEING PLAYED OR FLAG FLUTTERING THAT COULD HAVE HAPPENED BECAUSE WHILE THERE WAS WIDE AGREEMENT THAT THE COUNTRY'S OLD FLAG AND ANTHEM WERE TOO CLOSELY ASSOCIATED WITH APARTHEID NO ONE COULD COME UP WITH SUITABLE REPLACEMENTS THE TASK PROVED TOO MUCH BOTH FOR A SPECIALLY SETUP COMMISSION ON NATIONAL SYMBOLS AND FOR A TEAM OF PROFESSIONAL DESIGNERS THEIR SUCCESSIVE FAILURES HAD LED FREDERICK BROWNELL SOUTH AFRICA'S HERALD GENERAL OR MR FLAG SEALS AND COATS OF ARMS TO BECOME FRANTIC EVERY BANANA REPUBLIC HAS A FLAG OUTSIDE ITS INTERNATIONAL MISSIONS HE EXCLAIMED RECENTLY WHAT ON EARTH ARE WE GOING TO DO WITH MERCHANTMARINE VESSELS ON THE HIGH SEAS DO WE HAVE AN EMPTY FLAG POST AT THE UNITED NATIONS CAN YOU IMAGINE A FOREIGN EMBASSY WITHOUT A FLAG TO BE SURE WITH POLITICAL VIOLENCE THREATENING THE ELECTIONS A NEW FLAG AND ANTHEM HARDLY SEEM A PRIORITY THERE ARE MUCH MORE IMPORTANT ISSUES TO SOLVE LIKE WHETHER OR NOT WE HAVE A CIVIL WAR SAYS ANTHEA JEFFERY OF THE SOUTH AFRICAN INSTITUTE OF RACE RELATIONS BUT THE FLAP OVER A FLAG AND AN ANTHEM UNDERSCORE HOW DIVIDED SOUTH AFRICA REMAINS IF WE CANNOT AGREE ON THINGS AS INSIGNIFICANT AS A PIECE OF CLOTH AND A SONG HOW ON EARTH ARE WE GOING TO AGREE ON THINGS THAT REALLY MATTER WROTE A READER IN A LETTER TO THE DAILY THE STAR AMONG THE CONTRIBUTIONS THAT POURED IN WHEN THE SYMBOLS COMMISSION GOT TO WORK IN SEPTEMBER ONE PERSON SUGGESTED A LARGE BLACK CAT AND SMALL WHITE MOUSE TAILS ENTWINED ANOTHER PROPOSED CLEAR PLASTIC SO ANYONE COULD SEE IN IT WHAT HE WANTED A PESSIMIST RECOMMENDED A SKULLANDCROSSBONES A COFFIN AND 30 PIECES OF SILVER ON A FIELD OF BLACK ALL BUT SIX OF THE 7000 SUBMISSIONS WERE REJECTED AND NOT EVEN THE SIX SATISFIED THE COMMISSION ONE MEMBER ISSUED A DISSENTING REPORT SAYING ONE FLAG LOOKED LIKE GIFT WRAP IN THE END IT WAS DECIDED THAT THE NEW FLAG WILL BE DOMINATED BY A GREEN Y LAID ON ITS SIDE IT'S SURROUNDED BY BLOCKS OF BLACK RED AND BLUE SET OFF BY THIN LINES OF GOLD AND WHITE THE Y SAYS MR BROWNELL IS TO GIVE THE IDEA OF CONVERGENCE OF ROADS JOINING UP AND FLOWING TOGETHER THE NATIONAL ANTHEM DECISION HOWEVER RISKS MORE DISSONANCE THAN CONVERGENCE TO MANY BLACKS THE OLD ANTHEM DIE STEM VAN SUIDAFRIKA OR THE VOICE OF SOUTH AFRICA WITH ITS REFERENCES TO THE CREAKING OF OXWAGONS GLORIFIES THE AFRIKANERS' GREAT TREK THAT ULTIMATELY LED THEM TO POWER TO MANY WHITES THE AFRICAN NATIONAL CONGRESS'S ANTHEM NKOSI SIKELEL'I AFRIKA OR GOD BLESS AFRICA IS ASSOCIATED WITH TERRORISM THE COMMISSION RECEIVED 120 ANTHEM SUBMISSIONS AND SHORTLISTED SIX BUT AGREED THAT NONE COULD REALLY PASS FOR AN ANTHEM SO IT PROPOSED A COMPROMISE THAT WAS UPHELD BOTH DIE STEM AND NKOSI SIKELEL'I AFRIKA WILL BE PLAYED MANY FEAR THAT THIS WILL LEAD TO DUELLING ANTHEMS WITH SUPPORTERS OF THE TWO TRYING TO OUTSING EACH OTHER ON PUBLIC OCCASIONS AND THINK A NEW ANTHEM SHOULD BE FOUND QUICKLY 9403170157 940317 ONTARIO SELLS SKYDOME TO PRIVATE INVESTORS IN 1107 MILLION DEAL TORONTO AFTER TWO YEARS OF NEGOTIATIONS THE ONTARIO GOVERNMENT SAID IT COMPLETED THE SALE OF SKYDOME HOME OF THE BLUE JAYS BASEBALL TEAM TO A GROUP OF PRIVATE INVESTORS FOR 151 MILLION CANADIAN DOLLARS US1107 MILLION THE SALE BRINGS TO AN END THE PROVINCE'S NEARLY DECADELONG FINANCIAL NIGHTMARE WITH THE STADIUM LOCATED IN DOWNTOWN TORONTO ADJACENT TO THE CITY'S LANDMARK CN TOWER BEGUN IN 1986 SKYDOME'S CONSTRUCTION COSTS BALLOONED TO NEARLY C600 MILLION FROM AN ORIGINAL ESTIMATE OF C230 MILLION THE ONTARIO GOVERNMENT WROTE OFF MORE THAN HALF OF THESE COSTS OR C320 MILLION IN 1991 THE NEW OWNERS OF SKYDOME A 28MEMBER GROUP THAT INCLUDES SUCH PROMINENT COMPANIES AS CANADIAN IMPERIAL BANK OF COMMERCE AND THE CANADIAN SUBSIDIARIES OF FORD MOTOR CO AND COCACOLA CO APPARENTLY EXPECT THE STADIUM WILL BE PROFITABLE WITH A REDUCED LEVEL OF DEBT SKYDOME HAS CONSISTENTLY TURNED A PROFIT ON AN OPERATING LEVEL BUT HAS BEEN DEEP IN THE RED AFTER TAKING INTEREST COSTS INTO ACCOUNT BESIDES THE 50000SEAT SPORTS STADIUM THE SKYDOME COMPLEX INCLUDES A HOTEL A FITNESS CLUB AND ACRES OF RESTAURANTS INCLUDING NORTH AMERICA'S BIGGEST MCDONALD'S THE STADIUM HAS THE WORLD'S FIRST FULLY RETRACTABLE ROOF WHICH CAN BE OPENED OR CLOSED IN 20 MINUTES TO SUIT THE WEATHER UNDER TERMS OF THE PURCHASE THE INVESTMENT GROUP WILL PAY C151 MILLION PLUS ANOTHER C22 MILLION IN INTEREST COSTS DATING FROM WHEN A DEAL WAS FIRST STRUCK NEARLY TWO YEARS AGO THE ONTARIO GOVERNMENT SAID THE PROTRACTED NEGOTIATIONS INVOLVED DOZENS OF PARTIES INCLUDING THE BUYING GROUP AND THE VARIOUS OWNERS OF LAND UNDER SKYDOME THE GOVERNMENT SAID IT EXPECTS TO RECEIVE NET PROCEEDS FROM THE SALE OF C134 MILLION AFTER PAYING C39 MILLION MAINLY TO SETTLE LAWSUITS BY CONTRACTORS THAT HELPED TO BUILD THE STADIUM 9403170156 940317 WHO'S NEWS US LAN SYSTEMS CORP US LAN SYSTEMS CORP VIENNA VA MONROE MOE SPIERER 65 YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF TECHNICAL OFFICER A NEW POSITION AT THIS PROVIDER OF FINANCIAL ACCOUNTING SOFTWARE SYSTEMS MR SPIERER WAS FORMERLY VICE PRESIDENT AND CHIEF SCIENTIST AT COMPUTER SCIENCES CORP IN EL SEGUNDO CALIF 9403170155 940317 KPMG PEAT MARWICK MAY FACE CONFLICTS IN GE BID FOR KEMPER NEW YORK GENERAL ELECTRIC CO'S GE CAPITAL UNIT'S 22 BILLION TAKEOVER BID FOR KEMPER CORP CREATES POTENTIAL CONFLICTOFINTEREST PROBLEMS FOR KPMG PEAT MARWICK WHICH AUDITS BOTH COMPANIES BUT PEAT SAYS IT THINKS THE PROBLEMS CAN BE RESOLVED PEAT HAS TO BE VERY CAREFUL ABOUT THE SERVICES IT PERFORMS FOR BOTH CLIENTS IN THIS SITUATION TO AVOID ANY INDEPENDENCE OR ETHICS CONFLICTS SAYS HERBERT FINKSTON WHO HEADS THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS' PROFESSIONAL ETHICS DIVISION A BIG PROBLEM COULD ARISE IF PEAT PERFORMED ANY DUE DILIGENCE WORK FOR GE OR KEMPER EVALUATING GE'S BID OR KEMPER'S ASSETS NOTES MR FINKSTON A SPOKESWOMAN FOR PEAT SAYS THE ACCOUNTING FIRM WOULD HAVE TO ASK BOTH CLIENTS PRIOR TO PERFORMING SUCH WORK BUT WE DON'T SEE ANY PROBLEM SHE ADDS THOMAS SABOL GENERAL AUDITOR FOR KEMPER SAYS THAT ONLY IF PEAT DOES CONSULTING WORK INVOLVING THE BID COULD THERE BE A CONFLICT OF INTEREST PHILIP AMEEN GE'S CONTROLLER SAYS THAT GE HAS A LOT OF ITS OWN ACCOUNTANTS DOING SUCH CONSULTING WORK AND PROBABLY WOULDN'T CONSULT PEAT PEAT'S BIGGEST WORRIES MAY COME AFTER GE'S BID SUCCEEDS OR FAILS BOTH COMPANIES ARE MAJOR PEAT CLIENTS AND THE FEES PEAT RECEIVES WOULD PROBABLY DECLINE IF THE COMPANIES COMBINED IF THE BID FAILS KEMPER MAY SEEK ANOTHER AUDITOR TO PRESERVE ITS CONFIDENTIALITY ACCOUNTANTS SAY GE IS ONE OF PEAT'S BIGGEST CLIENTS WITH TOTAL ANNUAL FEES IN THE 30 MILLION TO 40 MILLION AREA 9403170154 940317 UNOCAL CORP AGREES TO CLEAN UP POLLUTION LINKED TO OIL FIELD LOS ANGELES UNOCAL CORP HAS AGREED TO PAY AT LEAST 55 MILLION TO SETTLE STATE CRIMINAL CHARGES AND CLEAN UP UNDERGROUND POLLUTION FROM ITS LARGE GUADALUPE OIL FIELD NEAR SAN LUIS OBISPO CIVIL CLAIMS BY THE STATE ARE LIKELY TO COST UNOCAL TENS OF MILLIONS OF ADDITIONAL DOLLARS ACCORDING TO COMPANY AND CALIFORNIA ENVIRONMENTAL OFFICIALS A COMPANY SPOKESMAN SAID PRELIMINARY SETTLEMENT DISCUSSIONS ALREADY HAVE BEGUN WITH THE STATE ATTORNEY GENERAL'S OFFICE THIS WEEK UNOCAL WAS CONVICTED ON THREE CRIMINAL MISDEMEANOR CHARGES OF ILLEGALLY DISCHARGING AND FAILING TO REPORT MASSIVE LEAKS OF A CHEMICAL USED TO DILUTE THE FIELD'S HEAVY CRUDE SINCE THE 1950S THE COMPANY'S OWN ESTIMATES INDICATE THAT MILLIONS OF GALLONS OF THE DIESELLIKE CHEMICAL LEAKED OUT OF STORAGE TANKS AND PIPELINES OR OTHERWISE CONTAMINATED GROUNDWATER IN 28 SEPARATE PLUMES THE COMPANY HAD BEEN CHARGED WITH 36 MISDEMEANOR COUNTS BEFORE IT NEGOTIATED A PLEA BARGAIN UNDER WHICH ALL BUT THREE OF THE CHARGES WERE DROPPED UNOCAL PLEADED NO CONTEST TO THE REMAINING CHARGES AS PART OF THE SETTLEMENT IT AGREED TO PAY ABOUT 15 MILLION IN PENALTIES AND ROUGHLY 2 MILLION TO CONTINUE CLEANING UP THE SITE A UNOCAL SPOKESMAN SAID ANOTHER 2 MILLION HAS BEEN COMMITTED TO COMPLETE THE INITIAL PHASE OF THE CLEANUP CRIMINAL CHARGES AGAINST SIX EMPLOYEES WERE DROPPED AS PART OF THE SETTLEMENT UNOCAL STOPPED USING THE CHEMICAL IN 1990 PROSECUTORS HAD CLAIMED THAT COMPANY OFFICIALS FAILED TO TAKE ACTION OR TO REPORT THE PROBLEM ONCE IT HAD BEEN DISCOVERED 9403170153 940317 INTERNATIONAL UNILEVER DEAL GETS EU APPROVAL AMSTERDAM DUTCH/ANGLO FOOD AND HOUSEHOLDPRODUCTS GROUP UNILEVER NV SAID IT HAS RECEIVED PERMISSION FROM THE EUROPEAN UNION COMMISSION TO PURCHASE FRENCH ICE CREAM AND FROZENFOODS MAKER ORTIZMIKO UNILEVER OFFERED TO SELL OFF ORTIZMIKO'S GERMAN ICE CREAM DIVISION WARNCKE AMONG OTHER CONCESSIONS TO GAIN THE EU APPROVAL 9403170152 940317 CANADIAN SHIPMENTS NEW ORDERS OTTAWA CANADIAN MANUFACTURERS RECORDED A DECLINE IN SHIPMENTS AND NEW ORDERS IN JANUARY FROM A MONTH EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID SHIPMENTS FELL IN JANUARY FOR THE SECOND CONSECUTIVE MONTH DROPPING 03 FROM DECEMBER THE DECLINE RESULTED PARTLY FROM A LONGSHOREMEN'S STRIKE THAT STOPPED SHIPMENTS THROUGH WEST COAST CANADIAN PORTS FOR TWO WEEKS BEGINNING IN LATE JANUARY STATISTICS CANADA SAID MANUFACTURERS' SHIPMENTS IN JANUARY ROSE 63 FROM A YEAR EARLIER NEW ORDERS FELL 64 IN JANUARY FROM DECEMBER AND UNFILLED ORDERS DECLINED 04 9403170151 940317 MARKETING & MEDIA HEINZ IS PLANNING TO EXPAND FURTHER IN FOOD SERVICE AND BABY FOOD SECTORS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HJ HEINZ CO FACED WITH DISAPPOINTING RESULTS AT ITS WEIGHT WATCHERS BUSINESS IN THE US SAID IT PLANS FURTHER MAJOR EXPANSION MOVES AND ACQUISITIONS IN INTERNATIONAL FOOD SERVICE AND BABY FOOD BUSINESSES APPEARING BEFORE FOOD INDUSTRY ANALYSTS HERE ANTHONY JF O'REILLY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF THE PITTSBURGH FOOD GIANT SAID THAT WITH HEINZ'S EMPHASIS ON FOOD SERVICE AND BABY FOOD AND CONTRIBUTIONS FROM ESTABLISHED AND NEWER BRANDS THE COMPANY EXPECTS DOUBLEDIGIT ANNUAL EARNINGS GROWTH IN THE NEXT THREE YEARS A HEINZ SPOKESMAN SAID THE COMPANY DIDN'T DISAGREE WITH ANALYSTS' OPERATING EARNINGS ESTIMATES OF 210 A SHARE FOR THE YEAR ENDING APRIL 30 COMPARED WITH 249 A SHARE THE YEAR EARLIER MR O'REILLY ALSO USED THE LUNCHEON MEETING TO TALK ABOUT HIS FUTURE AND ANSWER SPECULATION HE MAY LEAVE HEINZ IN THE NEXT FEW YEARS I AM GOING TO STAY WITH HEINZ UNTIL WE GET BACK OUR PREMIER RATING HE SAID I AM TOTALLY COMMITTED TO HEINZ THE 57YEAROLD EXECUTIVE SAID HE WILL STAY AT HEINZ ANOTHER FIVE YEARS IF NECESSARY IN RECENT MONTHS MR O'REILLY HAS EXPANDED HIS PRIVATE NEWSPAPER EMPIRE WITH MAJOR ACQUISITIONS IN ENGLAND AND SOUTH AFRICA MR O'REILLY TOLD ANALYSTS THAT HEINZ IS THE FINAL STAGES OF ACQUIRING THREE DIFFERENT BABY FOOD COMPANIES IN EUROPE INDIA AND LATIN AMERICA HE SAID HEINZ WHOSE WORLDWIDE BABY FOOD SALES ARE 631 MILLION WITH OPERATING PROFIT OF MORE THAN 170 MILLION PLANS TO SPEND 250 MILLION IN ACQUISITIONS AND INVESTMENTS IN THE BABY FOOD BUSINESS THIS YEAR IN THE FOOD SERVICE AREA MR O'REILLY SAID HEINZ THROUGH ACQUISITIONS AND EXPANSION HAS CREATED AN UNSUSPECTED THAT IS UNNOTICED HEINZ WITH ANNUAL SALES OF MORE THAN 14 BILLION AND OPERATING PROFIT OF MORE THAN 200 MILLION ANALYSTS SAID MR O'REILLY APPEARED HUMBLED BY THE COMPANY'S PROBLEMS WITH ITS WEIGHT WATCHERS UNIT BUT SAID HEINZ'S EARNINGS PROJECTIONS SEEMS REALISTIC IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING HEINZ SHARES ROSE 875 CENTS TO 32 HE IS TRYING TO SHOW THEY HAVE SOME NEW GROWTH VEHICLES BESIDES WEIGHT WATCHERS SAID JOHN M MCMILLIN AN ANALYST WITH PRUDENTIAL SECURITIES MANAGEMENT'S NEW GOALS ARE MORE REALISTIC THAN THE ONES GIVEN A FEW YEARS AGO PARTLY BECAUSE THEY COME OFF OF A LOW BASE MR O'REILLY NOTED THE COMPANY'S CASHFLOW POSITION SHOULD BE IMPROVING HAVING SPENT 11 BILLION IN CAPITAL INVESTMENTS TO UPGRADE FACILITIES WORLDWIDE IN THE PAST THREE YEARS HE SAID THIS YEAR AND NEXT CAPITAL SPENDING WOULD BE SUBSTANTIALLY LESS AT ABOUT 250 MILLION HEINZ WILL SPEND 130 MILLION ON A STOCK BUYBACK PROGRAM IN FISCAL 1994 A FIGURE THAT COULD DOUBLE TO 260 MILLION IN FISCAL 1995 9403170150 940317 FOREIGN EXCHANGE DOLLAR DRIFTS AGAINST MOST CURRENCIES DATA INDICATE FED RATE BOOST UNLIKELY BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR DRIFTED LOWER AGAINST EUROPEAN CURRENCIES YESTERDAY AS FRESH US INFLATION DATA QUASHED EARLIER MARKET SPECULATION OF AN IMMINENT CREDIT TIGHTENING MOVE BY THE FEDERAL RESERVE THE DOLLAR'S RETREAT AGAINST THE MARK WAS PUSHED FURTHER BY WIDESPREAD EXPECTATIONS THAT THE BUNDESBANK WON'T SIGNIFICANTLY CUT KEY INTEREST RATES WHEN ITS POLICYMAKING CENTRAL BANK COUNCIL MEETS TODAY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16885 MARKS DOWN FROM 16965 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10607 YEN UP A BIT FROM 106 YEN STERLING WAS TRADING AT 14944 UP FROM 14905 ABOUT NOON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10565 YEN AND AT 16863 MARKS THE DOLLAR'S SLIP BEGAN WITH THE RELEASE OF FEBRUARY'S US CONSUMER PRICE INDEX OR CPI WHICH SHOWED A SEASONALLY ADJUSTED 03 RISE A NUMBER THE MARKET REGARDED AS A SIGN THAT US INFLATION PRESSURES REMAIN SUBDUED THE RELATIVELY TAME CPI WHICH WAS IN LINE WITH MARKET EXPECTATIONS CAUSED PARTICIPANTS TO RECONSIDER AN EARLIER WIDESPREAD VIEW THAT THE FED'S FEDERAL OPEN MARKETS COMMITTEE WILL ORDER ANOTHER SHORTTERM RATE INCREASE WHEN IT MEETS NEXT TUESDAY THE BOND MARKET ALSO SAW THE CPI AS POINTING TO SUBDUED INFLATION AND PRICES FOR US TREASURYS MOVED HIGHER YESTERDAY ON TUESDAY RECENT SPECULATION ABOUT A FORTHCOMING FED RATE INCREASE WAS BOOSTED BY INDUSTRIAL CAPACITY DATA THAT SHOWED US FACTORIES OPERATING IN FEBRUARY AT THEIR HIGHEST LEVEL IN MORE THAN FOUR YEARS STILL THE DOLLAR REMAINED IN A FAIRLY TIGHT RANGE THROUGHOUT YESTERDAY AS DEALERS SORTED THROUGH THE CONTRADICTORY SIGNALS IN THIS WEEK'S US DATA IT'S NOW 5050 THAT THE FEDERAL OPEN MARKETS COMMITTEE WILL DO SOMETHING SAID JACK GRIFFIN VICE PRESIDENT AND MANAGER AT FUJI BANK LTD IN NEW YORK HE NOTED THAT WITH THE RECENT CALMING OF THE BOND MARKET THE FED MIGHT SEE THIS AS A TIME TO MAKE A MINOR TIGHTENING OF 25 BASIS POINTS BUT OTHER TRADERS SAW GREAT RELUCTANCE BY THE FED TO TRIGGER A SECOND INCREASE IN RATES THE GOOD DATA ON INFLATION DOESN'T WARRANT A FURTHER NUDGING BY THE FOMC AT THIS TIME SAID CHARLES SPENCE FOREIGNEXCHANGE MANAGER AT STANDARD CHARTERED BANK IN LOS ANGELES HE NOTED THE TURMOIL CAUSED IN WORLD FINANCIAL MARKETS FOLLOWING THE QUARTERPOINT RATE INCREASE BY THE FED ON FEB 4 THE AFTERSHOCK OF THE LAST LITTLE NUDGE WAS SO GREAT THAT PEOPLE BELIEVE IT'S TOO SOON FOR THE FED TO ACT AGAIN MR SPENCE ADDED MEANWHILE ANOTHER SLIGHT SHAVING OF THE BUNDESBANK'S RATE FOR SECURITIES REPURCHASE AGREEMENTS OR REPOS LEFT TRADERS WITH THE IMPRESSION THAT THE GERMANS AREN'T IN ANY RUSH TO EASE RATES AND THAT THE CONVERGENCE OF US AND GERMAN RATES IS A LONG WAY OFF THE BUNDESBANK ACCEPTED BIDS FOR ITS 14DAY REPOS ITS FAVORED INSTRUMENT FOR INFLUENCING MONEY MARKETS AT 588 A MERE SIX BASIS POINTS LESS THAN THE PREVIOUS WEEK DESPITE THE MARK'S RECENT STRENGTH WHICH COULD OFFER THE BUNDESBANK A WINDOW OF OPPORTUNITY FOR A RATE CUT FEW TRADERS EXPECT A SIGNIFICANT EASING THIS WEEK BY THE BUNDESBANK TRADERS SAID THE BUNDESBANK MAY EXECUTE A SYMBOLIC CUT IN ITS LOMBARD RATE ITS CEILING RATE THOUGH THEY ADDED THAT ONLY A CUT IN THE FLOOR DISCOUNT RATE WOULD BE MEANINGFUL BECAUSE THAT IS THE RATE THAT IS CLOSELY WATCHED DURING TIMES OF EASING THEY'RE DOING DRIBS HERE AND DRABS THERE SAID MR GRIFFIN ADDING NOBODY IS FACTORING A SIGNIFICANT CUT INTO THEIR CALCULATIONS 9403170149 940317 WHO'S NEWS UNISYS CORP UNISYS CORP BLUE BELL PA MALCOM COSTER HEAD OF COOPERS & LYBRAND MANAGEMENTCONSULTANCY PRACTICE AND AN EXECUTIVE PARTNER IN THE UK WAS NAMED SENIOR VICE PRESIDENT IN CHARGE OF UNISYS'S EUROPEAFRICA DIVISION BASED IN LONDON MR COSTER 49 YEARS OLD SUCCEEDS GRAHAM MURPHY 59 WHO RETIRED FROM THE INFORMATIONSERVICES AND COMPUTER FIRM 9403170148 940317 CORESTATES BUYS CONSTELLATION PHILADELPHIA CORESTATES FINANCIAL CORP COMPLETED ITS ACQUISITION OF CONSTELLATION BANCORP NEW BRUNSWICK NJ FOR ABOUT 300 MILLION IN CORESTATES SHARES CONSTELLATION WITH 49 BRANCHES HAS ABOUT 23 BILLION IN ASSETS CORESTATES A 259 BILLION BANKING COMPANY OPERATES IN SOUTHEASTERN AND SOUTH CENTRAL PENNSYLVANIA AND NEW JERSEY 9403170147 940317 WHO'S NEWS NEWMONT MINING CORP NEWMONT MINING CORP DENVER JP BOLDUC WAS NAMED A DIRECTOR OF THIS GOLD COMPANY AND OF ITS 901OWNED SUBSIDIARY NEWMONT GOLD CO FILLING SEATS BEING VACATED BY ANGLOFRENCH FINANCIER SIR JAMES GOLDSMITH MR BOLDUC 54 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OF WR GRACE & CO SIR JAMES 61 YEARS OLD SAID HE RESIGNED AS DIRECTOR TO AVOID POTENTIAL CONFLICTS OF INTEREST BECAUSE HE ACCEPTED AN INVITATION TO COLEAD A NATIONAL SLATE IN FRANCE FOR THE EUROPEAN PARLIAMENT 9403170146 940317 WHO'S NEWS NEW YORK STOCK EXCHANGE INC NEW YORK STOCK EXCHANGE INC NEW YORK SIR COLIN M MARSHALL CHAIRMAN OF BRITISH AIRWAYS PLC AND CLIFTON WHARTON JR A DIRECTOR OF FORD MOTOR CO AND FORMER DEPUTY SECRETARY OF STATE WERE NOMINATED TO BECOME DIRECTORS OF THIS STOCK EXCHANGE TO REPRESENT THE PUBLIC DERYCK C MAUGHAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SALOMON BROTHERS INC WAS NOMINATED TO REPRESENT THE SECURITIES INDUSTRIES DIRECTORS ARE ELECTED FOR TWOYEAR TERMS ON THE BOARD COMPOSED OF 12 PUBLIC MEMBERS 12 INDUSTRY MEMBERS AND TWO OFFICERS FROM THE EXCHANGE 9403170145 940317 WHO'S NEWS COASTAL CORP COASTAL CORP HOUSTON RODNEY D ERSKINE WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT PRODUCTION OF THIS COMPANY'S EXPLORATION AND PRODUCTION SUBSIDIARY COASTAL OIL & GAS CORP MR ERSKINE 49 YEARS OLD WAS FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NERCO OIL & GAS CO 9403170144 940317 WHO'S NEWS BETHLEHEM STEEL CORP BETHLEHEM STEEL CORP BETHLEHEM PA LEWIS B KADEN 51 YEARS OLD PARTNER IN THE NEW YORK LAW FIRM OF DAVIS POLK & WARDWELL WAS NAMED A NEW DIRECTOR OF THIS STEELMAKER THE MOVE INCREASES THE SIZE OF THE COMPANY'S BOARD TO 16 MEMBERS MR KADEN HAD BEEN DESIGNATED BY THE UNITED STEELWORKERS OF AMERICA FOR CONSIDERATION AS A DIRECTOR ACCORDING TO TERMS OF LAST YEAR'S LABOR AGREEMENT BETWEEN THE UNION AND THE COMPANY 9403170143 940317 INTERNATIONAL US PRESSURES JAPAN ON TRADE IN NEW AREAS BY DAVID P HAMILTON AND JATHON SAPSFORD STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JUST DAYS AFTER THE US AND JAPAN EASED TRADE TENSIONS BY ENDING A BITTER FIGHT OVER CELLULAR TELEPHONES THE US IS AGAIN TURNING UP THE HEAT ON JAPAN IN THE FIELDS OF CIVIL AVIATION AND MEDICAL EQUIPMENT THE US YESTERDAY WITHHELD APPROVAL OF JAPAN AIRLINES' APPLICATION FOR AN AIR ROUTE BETWEEN HONOLULU AND THE JAPANESE CITY OF SENDAI PENDING NEGOTIATIONS ON A BASKET OF AVIATION MATTERS US OFFICIALS ARE ALSO PREPARING AN OFFICIAL COMPLAINT DUE TODAY REGARDING PLANS BY THE JAPANESE HEALTH MINISTRY TO IMPOSE PRICE CONTROLS ON A VARIETY OF ADVANCED MEDICAL EQUIPMENT LARGELY MADE BY US FIRMS SEPARATELY SOZABURO OKAMATSU THE TOP TRADE OFFICIAL AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY TOLD REPORTERS THAT JAPAN HOPES TO RESTART TRADE TALKS WITH THE US IN APRIL AFTER IT RELEASES A SET OF UNILATERAL MARKETOPENING MEASURES IN LATE MARCH THOSE DISCUSSIONS KNOWN AS THE FRAMEWORK TALKS COLLAPSED IN MIDFEBRUARY WHEN JAPAN REFUSED TO ACCEPT US DEMANDS FOR IMPORT TARGETS MR OKAMATSU SAID THAT WHILE JAPAN STILL WON'T ACCEPT SUCH TARGETS WE WANT TO MAKE THE PACKAGE SALABLE TO THE US GOVERNMENT US OFFICIALS SAID THAT NEITHER THE WITHHOLDING OF JAL'S AIRROUTE APPLICATION NOR THE MEDICALEQUIPMENT COMPLAINT IS DIRECTLY RELATED TO THE FRAMEWORK TALKS STILL THE US HAS MADE NO SECRET OF ITS DESIRE TO KEEP THE PRESSURE ON JAPAN IN ORDER TO REACH A BROAD FRAMEWORK AGREEMENT WHAT'S MORE THE WAY THESE TWO ISSUES AROSE WITH LITTLE WARNING SUGGESTS THAT SEEMINGLY MINOR TRADE ISSUES WILL CONTINUE TO BUFFET THE USJAPAN ECONOMIC RELATIONSHIP UNTIL THE NATIONS REACH AN OVERARCHING TRADE AGREEMENT AT THE CENTER OF THE AVIATION DISPUTE ARE US DEMANDS FOR MORE BEYOND RIGHTS OR THE FREEDOM TO FLY ON TO OTHER ASIAN DESTINATIONS AFTER LANDING IN JAPAN THE US CARRIERS SEE SUCH RIGHTS AS A KEY WAY TO EXPAND BUSINESS THE US WITHHELD JAL'S APPLICATION IN RETALIATION FOR ALLEGED JAPANESE FOOTDRAGGING ON APPLICATIONS FOR THESE NEW ROUTES BY US CARRIERS AN INDIVIDUAL FAMILIAR WITH THE SITUATION SAID JAPAN HOWEVER SAYS A 1952 USJAPAN AVIATION AGREEMENT GIVES TOO GREAT AN ADVANTAGE TO US CARRIERS AND TOKYO WANTS TO RENEGOTIATE IT THE US INFORMED JAL OF ITS DECISION JUST TWO DAYS BEFORE THE CARRIER PLANNED TO BEGIN SERVICE STARTLING AIRLINE AND JAPANESE GOVERNMENT OFFICIALS THIS NOT ONLY HURTS THE US TOURISM INDUSTRY BUT IT ERODES TRUST BETWEEN THE TWO COUNTRIES SAID AN OFFICIAL AT JAPAN'S MINISTRY OF TRANSPORTATION THE US REPORTEDLY INTENDS TO APPROVE CHARTER FLIGHTS FOR THE 275 PASSENGERS WHO ALREADY HAVE TICKETS IN MEDICAL EQUIPMENT THE US CLAIMS THAT JAPAN'S HEALTH MINISTRY HAS WITHHELD INFORMATION ABOUT PENDING PRICE CONTROLS ON HIGHTECH DEVICES SUCH AS ARTIFICIAL BONE IMPLANTS THOSE PRICE CONTROLS WHICH ARE DUE APRIL 1 AS PART OF THE JAPANESE HEALTHCARE SYSTEM ARE BEING PHASED IN ON HIGHTECH EQUIPMENT SALES OF SUCH DEVICES BY US COMPANIES IN JAPAN AMOUNTED TO ROUGHLY 800 MILLION IN 1993 AND MAKE UP MORE THAN 20 OF TOTAL US MEDICALDEVICE SALES IN JAPAN ACCORDING TO THE HEALTH INDUSTRY MANUFACTURERS ASSOCIATION THE US RUNS A 200 MILLION ANNUAL TRADE SURPLUS WITH JAPAN IN MEDICAL EQUIPMENT THE US SAYS THAT JAPAN PROMISED TO RELEASE PRELIMINARY INFORMATION ON THE PRICE CONTROLS IN LATE JANUARY OR EARLY FEBRUARY THE HEALTH MINISTRY HOWEVER RELEASED THAT INFORMATION JUST YESTERDAY ALTHOUGH IT SAID EARLIER INFORMATION WAS AVAILABLE TO ANY COMPANY THAT CAME BY THE MINISTRY TO PICK IT UP THE LATE RELEASE GIVES US INDUSTRY NO TIME AT ALL TO ADJUST TO THE NEW PRICING REGIME A US OFFICIAL SAID THE US PLANS TO REACT TODAY BUT OFFICIALS DECLINED TO SAY WHAT ACTIONS THEY MIGHT TAKE 9403170142 940317 COMMODITIES COPPER FUTURES PRICES SOAR ON BUYING IN EUROPE TIGHT US SUPPLIES STRONG SPECULATIVE DEMAND BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COPPER FUTURES PRICES CONTINUED TO SOAR ON STRONG MERCHANT BUYING IN EUROPE TIGHT US SUPPLIES AND STRONG SPECULATIVE DEMAND AMONG INVESTORS AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR MAY DELIVERY WAS UP 110 CENTS TO 9315 CENTS A POUND SINCE MARCH 1 WHEN THE MAY CONTRACT PRICE HIT A RECENT LOW OF 8550 CENTS A POUND THE CONTRACT'S PRICE HAS RISEN NEARLY 9 UNTIL RECENTLY EUROPEAN COPPER PRICES HAVE LAGGED BEHIND PRICES IN THE US WHICH HAVE BEEN ENERGIZED BY SURGES IN HOME BUILDING AND POSITIVE US ECONOMIC DATA BUT NOW THE EUROPEAN MARKET IS GAINING STRENGTH ANALYSTS SAID THE EUROPEAN SECTOR IS PERKING UP AND THAT ALLOWS FOR THE NEXT PHASE OF THE RALLY SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH EUROPEAN MERCHANT DEMAND IS RISING AND SCRAP COPPER PRICES A GOOD INDICATOR OF MARKET STRENGTH ARE VERY FIRM COPPER'S STRENGTH YESTERDAY WAS ACCOMPANIED BY GAINS IN OTHER BASE METALS FUTURES CONTRACTS TRADED IN LONDON INCLUDING ALUMINUM AND NICKEL AND COPPER STOCKS AT THE LONDON METALS EXCHANGE ARE DOWN SHARPLY SINCE LATE LAST YEAR AN INDICATION OF STRONG DEMAND FOR THE INDUSTRIAL METAL FROM OVERSEAS BUYERS IN THE US CONSUMPTION OF COPPER BY INDUSTRIAL USERS CONTINUES TO BE PHENOMENAL SAID FRED DEMLER METALS ECONOMIST FOR ED & F MAN BRASS AND ROD MILL USAGE WHICH ACCOUNTS FOR ABOUT 90 OF ALL USAGE OF COPPER IS UP ABOUT 12 FROM YEAR AGO HE SAID COPPER PRODUCTION ANALYSTS SAID IS DOWN AROUND THE WORLD ESPECIALLY IN AFRICA AND THE PHILIPPINES SUPPLIES OF COPPER ARE ESPECIALLY TIGHT IN THE US WHICH HAS RESULTED IN A CONDITION CALLED BACKWARDIZATION AT NEW YORK'S COPPER FUTURES MARKET IN WHICH PRICES FOR NEARTERM FUTURES CONTRACTS ARE TRADING AT PRICES HIGHER THAN THOSE FOR FARTERM CONTRACTS THE WHOLE PATTERN SETS UP WELL MR O'NEILL SAID I THINK COPPER PRICES WILL EVENTUALLY MOVE OVER 1 A POUND IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF MOST CORN WHEAT AND SOYBEAN FUTURES CONTRACTS ROSE AMID CONTINUING NERVOUSNESS ABOUT TIGHT US GRAIN SUPPLIES IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR JULY DELIVERY ROSE 225 CENTS A BUSHEL TO SETTLE AT 29025 A BUSHEL THE SOYBEAN CONTRACT FOR JULY DELIVERY ROSE 425 CENTS A BUSHEL TO SETTLE AT 69525 A BUSHEL DON ROOSE PRESIDENT OF US COMMODITIES INC OF DES MOINES IOWA SAID HE EXPECTS THE QUARTERLY AGRICULTURE DEPARTMENT SURVEY SLATED FOR RELEASE ON MARCH 31 TO SHOW THAT US LIVESTOCK CONSUMED A RECORD AMOUNT OF CORN DURING DECEMBER JANUARY AND FEBRUARY THE RECORD RAIN LAST YEAR ACROSS THE MIDWEST THAT SLASHED THE SIZE OF THE CORN CROP HURT QUALITY AS WELL AS A RESULT HOGS AND CATTLE HAVE TO EAT MORE GRAIN THAN NORMAL TO GET THE SAME LEVEL OF NUTRITION THE HARSH WINTER ALSO INCREASED THEIR NUTRITIONAL NEEDS GRAIN PRICES ARE ALSO BEING SUPPORTED BY THE RELUCTANCE OF FARMERS TO SELL THEIR CROPS TRADERS ARE ALREADY SPECULATING THAT SOME AREAS OF THE MIDWEST MIGHT EXPERIENCE SHORTAGES BEFORE THE AUTUMN HARVESTS ENERGY CRUDE OIL FUTURES PRICES SETTLED HIGHER YESTERDAY WITH THE CONTRACT FOR APRIL DELIVERY SETTLING OVER 15 A BARREL FOR THE FIRST TIME SINCE FEB 8 ALTHOUGH TRADERS PEGGED THE RALLY AS MOSTLY TECHNICAL THEY ALSO SAID THAT THE MARKET BOUNCED A BIT ON NEWS THAT TOSCO CORP WILL BEGIN MAINTENANCE THAT WILL STOP OPERATIONS TEMPORARILY AT PART OF ITS REFINERY IN MARTINEZ CALIF AND THE IRAQI POT WAS AGAIN STIRRED A BIT WHEN IRAQI DIPLOMATS PRESENTED A NINEPAGE LETTER TO UN OFFICIALS SAYING IRAQ IS IN FULL COMPLIANCE WITH UN CEASEFIRE RESOLUTIONS AND CALLED FOR THE IMMEDIATE END TO THE OIL EMBARGO THE LETTER CHARGED THAT POLITICAL PRESSURE HAS BEEN PLACED ON THE UN SPECIAL COMMISSION MONITORING IRAQ'S COMPLIANCE WITH WEAPONS RESOLUTIONS AND THAT THE PRESSURE HAS WRONGLY PREVENTED THE OIL EMBARGO FROM BEING LIFTED MOST PETROLEUM PRODUCTS CONTRACTS ALSO ENDED HIGHER 9403170141 940317 MARKETING & MEDIA COCACOLA PROJECTS VOLUME GROWTH OF 8 OVERSEAS BY LAURIE M GROSSMAN AND ELEENA DE LISSER STAFF REPORTERS OF THE WALL STREET JOURNAL ATLANTA COCACOLA CO SAID IT IS CONFIDENT IT WILL REACH 8 VOLUME GROWTH IN ITS INTERNATIONAL BUSINESS THIS YEAR SEPARATELY THE SOFTDRINK COMPANY OUTLINED PLANS FOR A 350 MILLION PROMOTIONAL CAMPAIGN FOR THE SUMMER THE BIGGEST IN COKE'S HISTORY THE VOLUME PROJECTION MADE BY JOHN HUNTER PRESIDENT OF COKE'S INTERNATIONAL BUSINESS SECTOR IN AN ADDRESS TO INDUSTRY ANALYSTS HERE APPEARED TO BE A BID TO BOLSTER INVESTOR CONFIDENCE IN THE COMPANY IN RECENT YEARS COKE HAS PREDICTED THAT VOLUME IN OVERSEAS MARKETS WHICH ACCOUNT FOR ABOUT 80 OF THE COMPANY'S EARNINGS WOULD GROW AT A RATE OF ABOUT 8 TO 10 BUT FINAL FIGURES HAVE SOMETIMES FALLEN SHORT OF THAT GOAL LAST YEAR INTERNATIONAL VOLUME GREW 6 BUT MR HUNTER SAID COKE IS OPTIMISTIC THAT 8 GROWTH IS ACHIEVABLE THIS YEAR BECAUSE ECONOMIES IN KEY COUNTRIES SUCH AS GERMANY ARE EXPECTED TO REBOUND LATER THIS YEAR MOREOVER COKE SEES STRONG SALES IN EMERGING MARKETS SUCH AS CHINA AND EASTERN EUROPE AS WELL AS SALES GAINS IN THE LATIN AMERICA AND PACIFIC MARKETS MR HUNTER ALSO SAID THE COMPANY IS CAUTIOUSLY LOOKING AT ACQUIRING OTHER BRANDS IN OTHER MARKETS AFTER THE SUCCESS OF COKE'S PURCHASE OF PARLE EXPORTS LTD IN INDIA LAST YEAR PARLE BRANDS CONTROL 60 OF THE INDIA MARKET MEANWHILE COKE'S SUMMER MARKETING CAMPAIGN CALLED RED HOT SUMMER WILL RUN FOR 11 WEEKS BEGINNING IN MIDMAY THE PACKAGE WILL BE TIED INTO PROGRAMMING ON THE FOX TELEVISION NETWORK IN AN EFFORT TO ATTRACT YOUNG CONSUMERS PRIZES WILL BE FEATURED ON MULTIPACKS AND BOTTLES OF COKE'S CORE BRANDS AND IN SELECTED FOUNTAIN OUTLETS ABOUT 30 MILLION IN TV AND RADIO ADVERTISING WILL BE SPENT TO SUPPORT THE CAMPAIGN TOM PIRKO A BEVERAGE INDUSTRY CONSULTANT SAID THE MOVES ARE IN KEEPING WITH COKE'S PLAN TO RESPOND FASTER TO CHANGING CONSUMER TASTES THEY'RE TRYING TO SHAKE OFF ABOUT 10 YEARS OF VERY CONSERVATIVE DOMESTIC BEHAVIOR MR PIRKO SAID SINCE THE YOUTH MARKET HAS BEEN PEPSI'S FRANCHISE FOR SEVERAL YEARS MR PIRKO SAID IT WILL BE INTERESTING TO SEE HOW THAT COMPANY RESPONDS TO COKE'S SUMMER MARKETING JUGGERNAUT IN PURCHASE NY A SPOKESWOMAN FOR PEPSICO INC DECLINED TO GIVE ANY DETAILS ABOUT THE COMPANY'S SUMMER PLANS BUT SAID THE COMPANY PERCEIVES COKE'S MOVES AS THE HIGHEST FORM OF FLATTERY IT'S A COMPLIMENT TO BE CONSIDERED THE BENCHMARK FOR SUCCESSFUL ADVERTISING AND MARKETING SHE SAID 9403170140 940317 ABREAST OF THE MARKET PROGRAM SELLING AT CLOSE REVERSES EARLIER GAINS INDUSTRIALS FALL 144 BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK A STRONG BOND MARKET CARRIED MOST STOCKS HIGHER BUT BLUE CHIPS WERE HIT BY A LATE BURST OF PROGRAM SELLING TRADERS SAID LARGE SELL ORDERS FOR MANY BIG CYCLICAL STOCKS HIT THE NEW YORK STOCK EXCHANGE FLOOR IN THE FINAL MINUTES OF TRADING A 15POINT GAIN IN THE DOW JONES INDUSTRIAL AVERAGE WAS REVERSED TO A LOSS OF 144 TO 384815 THE SELLING KNOCKED MINNESOTA MINING & MANUFACTURING FOR A LOSS OF 1/2 TO 102 1/2 AT THE CLOSE IT WAS AT 103 5/8 JUST A FEW MINUTES EARLIER INTERNATIONAL PAPER ENDED WITH A DROP OF 7/8 TO 68 1/4 IT HAD BEEN AT 69 1/8 AHEAD OF THE CLOSE BROADBASED INDEXES WERE BARELY AFFECTED BY THE LATE SELLING SPREE WHOSE SUDDEN NATURE LEFT SOME TRADERS MOMENTARILY CONVINCED THAT THEIR QUOTE MACHINES HAD MALFUNCTIONED ADVANCING ISSUES ON THE NEW YORK STOCK EXCHANGE LED DECLINERS ABOUT 1346 TO 803 OBSERVERS SAID THE SUDDEN DROP COULD HAVE BEEN RELATED TO A SINGLE INSTITUTION BAILING OUT OF POSITIONS OR TO TRADING STRATEGIES TIED TO TOMORROW'S TRIPLEWITCHING EXPIRATION OF FUTURES AND OPTIONS THE MARKET WAS AFFECTED BY PROGRAM TRADING SEVERAL TIMES DURING THE DAY PROGRAM SELLING IN THE MORNING HAD INITIALLY HELPED DEPRESS STOCKS DESPITE GAINS IN THE BOND MARKET STOCKS RECOVERED FROM THE EARLY LOSSES AS THE RALLY IN THE BOND MARKET MOUNTED THE 30YEAR TREASURY BOND GAINED NEARLY A POINT PUSHING ITS YIELD DOWN TO 679 INVESTORS IN BOTH STOCKS AND BONDS WERE REASSURED BY INFLATION DATA AFTER A POSITIVE READING ON FEBRUARY PRODUCER PRICES TUESDAY THE LABOR DEPARTMENT YESTERDAY SAID THE CONSUMER PRICE INDEX EDGED UP 03 MATCHING EXPECTATIONS THE NASDAQ COMPOSITE INDEX ROSE 547 TO 79899 THAT IS LESS THAN 15 POINTS FROM ITS HIGH SET JAN 31 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 169 TO 46982 NORTHROP JUMPED 1 7/8 TO 43 3/4 AMID RUMORS THAT MARTIN MARIETTA OR ANOTHER LARGE AEROSPACE CONCERN COULD MAKE A BID FOR THE LOS ANGELES COMPANY NORTHROP AND MARTIN MARIETTA HAVE BOTH OFFERED TO ACQUIRE GRUMMAN NORTHROP'S BID OF 60 A SHARE FOR GRUMMAN TOPPED A 55ASHARE OFFER FROM MARTIN MARIETTA BUT TRADERS HAVE SPECULATED THAT NEW HIGHER OFFERS FOR GRUMMAN WILL ARISE SPOKESMEN FOR NORTHROP MARTIN MARIETTA AND GRUMMAN ALL DECLINED TO COMMENT ON THE RUMORS SHARES OF GRUMMAN EASED 5/8 TO 65 1/4 MARTIN MARIETTA LOST 3/8 TO 44 1/8 NIKE CLIMBED 3 TO 57 1/2 THE BEAVERTON ORE FOOTWEAR COMPANY HAD EARNINGS OF 85 CENTS A SHARE FOR THE THIRD QUARTER ENDED LAST MONTH DOWN FROM 116 A YEAR EARLIER BUT IN LINE WITH ANALYSTS' PROJECTIONS NIKE SAID IT EXPECTS ITS BUSINESS TO RESUME GROWTH IN THE NEXT FISCAL YEAR US SURGICAL JUMPED 2 1/4 TO 18 3/8 AFTER THE COMPANY PROJECTED THAT ITS FIRSTQUARTER LOSS WILL BE NARROWER THAN THE 26CENTASHARE OPERATING LOSS IT EXPECTS TO REPORT FOR THE FOURTH QUARTER THE NORWALK CONN MEDICALDEVICE MAKER SAID ITS RESTRUCTURING AND COSTCUTTING INITIATIVES WILL BE COMPLETED THIS MONTH MFS COMMUNICATIONS JUMPED 4 3/8 TO 35 1/8 ON THE NASDAQ STOCK MARKET AFTER THE OMAHA NEB COMPANY LAUNCHED A 9ASHARE TENDER OFFER TO ACQUIRE CENTEX TELEMANAGEMENT OF SAN FRANCISCO CENTEX A SMALL CAPITALIZATION STOCK ROCKETED 5 5/8 OR 115 TO 10 1/2 ON NASDAQ ADOBE SYSTEMS LOST 3 TO 29 1/2 FOLLOWING NEWS IT PLANS TO ACQUIRE ALDUS THROUGH A STOCKSWAP TRANSACTION ADOBE OF MOUNTAIN VIEW CALIF WILL PAY 115 SHARES OF ITS COMMON STOCK FOR EACH SHARE OF SEATTLEBASED ALDUS ALDUS ALSO A SMALLCAP ISSUE SURGED 6 TO 32 1/4 ON NASDAQ AMOCO ADVANCED 2 1/2 TO 54 5/8 DEAN WITTER REYNOLDS ANALYST EUGENE NOWAK UPGRADED HIS RATING ON THE STOCK TO ACCUMULATE FROM NEUTRAL CALLING THE STOCK ATTRACTIVELY PRICED MR NOWAK ALSO CITED A PLANNED RESTRUCTURING AT THE CHICAGO OIL AND GAS COMPANY TRADING IN CIA DE TELEFONOS DE CHILE'S AMERICAN DEPOSITARY RECEIPTS REMAINED HALTED ALL DAY ON THE BIG BOARD BUT THEY TRADED AT BETWEEN 100 AND 105 IN LATE ACTION OFF THE EXCHANGE FLOOR THE ISSUE TUMBLED 15 3/4 TO 100 1/2 TUESDAY BEFORE TRADING WAS STOPPED TO ALLOW FOR DISSEMINATION OF NEWS CHILEAN REGULATORS HAD PROPOSED NEW RATE TARIFFS THAT THE TELEPHONESERVICES COMPANY SAID WOULD HURT ITS BUSINESS THE BIG BOARD SAID EXCHANGE TRADING IN THE ADR WAS SUSPENDED PENDING RELEASE OF ADDITIONAL INFORMATION TELEFONOS DE MEXICO'S AMERICAN DEPOSITARY RECEIPTS ADDED 7/8 TO 61 3/4 ON BIG BOARDLEADING VOLUME OF 10 MILLION THE MEXICAN STOCK MARKET REBOUNDED SOMEWHAT FROM A BRUISING TUMBLE TUESDAY TRIGGERED BY POLITICAL UNCERTAINTY IN MEXICO AND WORRIES ABOUT THE KIDNAPPING OF A PROMINENT MEXICAN BANKING AND BROKERAGE FIRM EXECUTIVE INTERNATIONAL GAME TECHNOLOGY ADDED 1 5/8 TO 32 SMITH BARNEY SHEARSON ADDED SHARES OF THE RENO NEV GAMBLING EQUIPMENT COMPANY TO A RECOMMENDED LIST 9403170139 940317 HARRIS JOB FOR NETHERLANDS ARMY MELBOURNE FLA HARRIS CORP SAID IT WON A 40 MILLION CONTRACT TO PROVIDE THE ROYAL NETHERLANDS ARMY WITH SECURE COMMUNICATIONS SYSTEMS THE PACT ALSO GIVES THE ARMY AN OPTION FOR AN ADDITIONAL 40 MILLION WORTH OF HARRIS EQUIPMENT HARRIS'S RF COMMUNICATIONS DIVISION IN ROCHESTER NY WILL DESIGN MANUFACTURE AND DELIVER THE SYSTEMS WHICH PROVIDE SECURE DIGITIZED VOICE AND HIGHSPEED DATA COMMUNICATIONS 9403170138 940317 WHO'S NEWS RUBBERMAID INC RUBBERMAID INC WOOSTER OHIO DAVID L ROBERTSON 48 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF HUMAN RESOURCES AT THIS MAKER OF RUBBER AND PLASTIC PRODUCTS HE WILL SUCCEED THOMAS W WARD 59 WHO WILL RETIRE FROM THE COMPANY SOMETIME NEXT MONTH MR ROBERTSON CURRENTLY SERVES AS VICE PRESIDENT OF HUMAN RESOURCES AT HILLENBRAND INDUSTRIES INC BATESVILLE IND 9403170136 940317 ECONOMY MAJOR INSURERS AGREE THEY'LL PAY MORE IF SUPERFUND OVERHAUL BILL CURBS SUITS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MAJOR INSURANCE COMPANIES AGREED TO PAY MORE IN THE SUPERFUND OVERHAUL IN EXCHANGE FOR GREATER ASSURANCE THAT THE PLAN WOULD REDUCE LITIGATION AGAINST THEM THE AGREEMENT IS LIKELY TO EASE PASSAGE OF THE CLINTON ADMINISTRATION'S BILL TO REVAMP THE SUPERFUND POLLUTIONCLEANUP PROGRAM THE PROPOSAL WAS PUT FORWARD BY THE AMERICAN INSURANCE ASSOCIATION AND A GROUP OF 14 COMPANIES INCLUDING SUCH BIG INSURERS AS AETNA LIFE & CASUALTY CO AND TRAVELERS INSURANCE AS WELL AS SUCH INDUSTRIAL GIANTS AS GENERAL ELECTRIC CO AND DUPONT CO KEY GOVERNMENT PLAYERS IN THE SUPERFUND OVERHAUL WELCOMED THE INDUSTRY MOVE ALTHOUGH THEY DIDN'T IMMEDIATELY ENDORSE IT THE ADMINISTRATION'S BILL WOULD CREATE A SYSTEM FOR ALLOCATING SUPERFUND LIABILITY AND SETTLING LAWSUITS BETWEEN INSURERS AND COMPANIES RESPONSIBLE FOR HAZARDOUS WASTE SITES AMONG ITS MOST SIGNIFICANT MODIFICATIONS THE INDUSTRY PLAN WOULD REQUIRE THE SETTLEMENT OF AT LEAST 85 OF ALL SUPERFUND LAWSUITS BETWEEN INSURERS AND THEIR INDUSTRY CLIENTS BEFORE THE NEW PROGRAM TOOK EFFECT UNDER THE ORIGINAL PLAN 85 WAS JUST A GOAL THE PROPOSAL ALSO WOULD INCREASE THE RISK TO A POLLUTING BUSINESS THAT DIDN'T SETTLE A SUPERFUND CLAIM AGAINST IT IF SUCH A COMPANY LOST IN COURT IT WOULD HAVE TO PAY AS MUCH AS 50 OF ITS INSURANCECOMPANY OPPONENT'S LEGAL FEES THE ADMINISTRATION PROPOSAL HAS A 20 LEGALFEE PROVISION IN EXCHANGE FOR THESE ALTERATIONS THE INSURANCE INDUSTRY AGREED TO PAY TAXES OF AS MUCH AS 81 BILLION OVER 10 YEARS TO FUND THE SETTLEMENTS THE ADMINISTRATION HAD CONTEMPLATED A TAX OF AS MUCH AS 31 BILLION OVER FIVE YEARS APPEARING AT THE NEWS CONFERENCE WHERE THE INDUSTRY PLAN WAS UNVEILED WERE CAROL BROWNER HEAD OF THE ENVIRONMENTAL PROTECTION AGENCY SEN FRANK LAUTENBERG D NJ AND REP AL SWIFT D WASH THE THREE SAID THEY WEREN'T YET READY TO ENDORSE THE INDUSTRY PLAN AND THE INDUSTRY OFFICIALS PRESENT WERE LIKEWISE UNWILLING TO SAY THEY WOULD SUPPORT THE WHOLE SUPERFUND BILL IF THEIR PROPOSED CHANGES WERE MADE BUT BOTH SIDES EMPHASIZED THAT THEY HAD MOVED SIGNIFICANTLY CLOSER TO CONSENSUS THE MOST LITIGIOUS PARTIES IN THE SUPERFUND WEB HAVE RESOLVED THEIR DIFFERENCES MS BROWNER SAID MR SWIFT SAID HE THOUGHT THE PROPOSAL WAS LIKELY TO BE GOOD PUBLIC POLICY AND MR LAUTENBERG CALLED IT A POSITIVE STEP FORWARD MESSRS SWIFT AND LAUTENBERG BOTH SAID THEY HOPED TO TAKE UP THE SUPERFUND BILL IN THE HOUSE AND SENATE SUBCOMMITTEES THAT THEY HEAD IN APRIL 9403170135 940317 MELLON BANK'S SALE TO FIRST DATA PITTSBURGH MELLON BANK CORP SAID IT SIGNED A NONBINDING LETTER OF INTENT TO SELL PART OF ITS BOSTONBASED MUTUAL FUND ADMINISTRATION BUSINESS TO FIRST DATA CORP MELLON WHICH SAID IT EXPECTS ANY GAIN OR LOSS TO BE IMMATERIAL DOESN'T EXPECT THE SALE TO BE MATERIAL TO ITS 1994 EARNINGS THE BUSINESS BEING SOLD PROVIDES ADMINISTRATIVE SERVICES TO 24 MUTUAL FUND FAMILIES THROUGH BOSTON CO WHICH MELLON ACQUIRED IN MAY 1993 9403170134 940317 TECHNOLOGY BRISTOLMYERS ESTROGEN PRODUCT PRINCETON NJ BRISTOLMYERS SQUIBB CO LAUNCHED ESTRACE 05 WHICH IT SAID IS THE LOWESTDOSE ORAL ESTROGEN PRODUCT FOR THE PREVENTION OF OSTEOPOROSIS THE BONETHINNING DISEASE THE US MARKET FOR ESTROGENREPLACEMENT THERAPY USED TO TREAT MENOPAUSAL SYMPTOMS AND OSTEOPOROSIS IS ESTIMATED AT 900 MILLION A YEAR ACCORDING TO BRISTOLMYERS THE HIGHERDOSE ESTRACE PRODUCTS HOLD ABOUT 8 OF THE MARKET WHICH IS DOMINATED BY AMERICAN HOME PRODUCTS CORP'S PREMARIN A BRISTOLMYERS SPOKESMAN SAID 9403170133 940317 MARKETING & MEDIA ZIFF ONLINE SERVICE SIGNS WASHINGTON POST NEW YORK ZIFF COMMUNICATIONS CO AND WASHINGTON POST CO'S DIGITAL INK UNIT AGREED TO PUT THE NATIONAL NEWSPAPER ON ZIFF'S NEW ONLINE SERVICE THE OFFERING SCHEDULED TO BEGIN IN THE FALL WITH THE START OF ZIFF'S INTERCHANGE ONLINE SERVICE WILL OFFER NEWS FROM THE WASHINGTON POST AND INCLUDE LOCAL SPORTS CALENDARS OF CULTURAL EVENTS AND OTHER NEIGHBORHOOD NEWS FOR WASHINGTON RESIDENTS THE SERVICE ALSO WILL PROVIDE READERS WITH ELECTRONIC DISCUSSION GROUPS INCLUDING INTERACTIVE CHAT WITH EDITORS AND REPORTERS AND WILL ALLOW USERS TO ACCESS THE INTERNET THE GLOBAL COMPUTER NETWORK DONALD K BRAZEAL EDITOR AND PUBLISHER OF DIGITAL INK CO SAID THE NEW POST SUBSIDIARY IS PURSUING OTHER NATIONAL AND INTERNATIONAL ONLINE OFFERINGS AIMED AT BUSINESS USERS NEWS STORIES IN THE PRINT VERSION OF THE POST WILL INCLUDE REFERRALS TO THE NEW ONLINE SERVICE FOR ADDITIONAL INFORMATION PRICING FOR THE SERVICE WILL BE SIMILAR TO THE 920 MONTHLY SUBSCRIPTION RATE FOR THE NEWSPAPER BASED ON A MAXIMUM NUMBER OF HOURS TO BE DETERMINED FOR AN EXTRA FEE SUBSCRIBERS WILL BE ABLE TO ACCESS ZIFF'S INTERCHANGE SERVICE ZIFF IS GIVING THE POST AND OTHER PUBLISHERS CONTROL OF THE LOOK AND FEEL OF THEIR ONLINE NEWSPAPERS 9403170132 940317 TREASURY PLANS TO SELL NOTES TO RAISE CASH WASHINGTON THE TREASURY PLANS TO RAISE A COMBINED 458 BILLION IN FRESH CASH NEXT WEEK WITH THE SALE OF 17 BILLION OF TWOYEAR NOTES ON TUESDAY AND 11 BILLION OF FIVEYEAR NOTES ON WEDNESDAY THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 2343 BILLION IN MATURING TWOAND FIVEYEAR NOTES THE NEW TWOYEAR NOTES WILL BE DATED MARCH 31 AND MATURE MARCH 31 1996 THE NEW FIVEYEAR NOTES WILL BE DATED MARCH 31 AND MATURE MARCH 31 1999 THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827P30 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827P48 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 MUST BE RECEIVED BY NOON EST TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EST NONCOMPETITIVE TENDERS FOR THE FIVEYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 MUST BE RECEIVED BY NOON EST WEDNESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EST 9403170131 940317 INTERNATIONAL BULL SAYS ITS NET LOSS WIDENED LAST YEAR AS REVENUE DECLINED SPECIAL TO THE WALL STREET JOURNAL PARIS CIE DES MACHINES BULL SAID ITS 1993 NET LOSS AFTER PROVISIONS WIDENED TO 507 BILLION FRANCS 8787 MILLION FROM 472 BILLION FRANCS IN 1992 THE FRENCH STATECONTROLLED COMPUTER MAKER SAID ITS 1993 ACCOUNTS INCLUDED RESTRUCTURING PROVISIONS OF 165 BILLION FRANCS TO SUPPORT THE GROUP TURNAROUND BULL'S REVENUE IN 1993 TOTALED 2825 BILLION FRANCS DOWN 64 FROM 3019 BILLION FRANCS IN 1992 THE GROUP ALSO POSTED AN OPERATING LOSS OF 189 BILLION FRANCS WHILE DEBT AT THE END OF DECEMBER STOOD AT 445 BILLION FRANCS BULL SAID IT WAS TAKING THE RESTRUCTURING PROVISION IN ITS 1993 ACCOUNTS TO REDUCE COSTS AND REORGANIZE COMPANY SITES WORLDWIDE AS WELL AS CREATE A RESERVE TO PROVIDE FOR ADDITIONAL MEASURES WHICH MAY HAVE TO BE TAKEN IN RELATION TO MARKET EVOLUTION AND FUTURE GROUP RESULTS THE LATEST EARNINGS REPORT BRINGS BULL'S ACCUMULATED LOSSES SINCE 1989 TO 20 BILLION FRANCS IN A SURPRISE MOVE LAST WEEK THE FRENCH GOVERNMENT AUTHORIZED THE PRIVATIZATION OF BULL WHICH IS LIKELY TO TAKE PLACE IN 1994 RATHER THAN A PUBLIC OFFERING OFFICIALS HAVE INDICATED THAT THEY WILL SEARCH FOR INDUSTRIAL PARTNERS TO TAKE SHAREHOLDINGS IN BULL JAPAN'S NEC CORP WHICH HOLDS A 443 STAKE WAS COURTED BY FRENCH INDUSTRY MINISTER GERARD LONGUET LAST WEEK IN AN EFFORT TO PERSUADE IT TO BOOST ITS HOLDING 9403170130 940317 NASD FILES PROPOSAL WITH SEC TO REPLACE SMALLORDER SYSTEM SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION EARLIER THIS MONTH TO ELIMINATE AND REPLACE ITS SMALL ORDER EXECUTION SYSTEM THE NASD WHICH OPERATES AND REGULATES THE NASDAQ STOCK MARKET ASKED THE SEC ON MARCH 4 TO REPLACE SOES WITH A NEW AUTOMATED SMALLORDER EXECUTION SYSTEM WITH ENHANCEMENTS FOR LIMIT ORDERS AND MARKETMAKERS PROCESSING OF INCOMING ORDERS ACCORDING TO A SPOKESMAN JAMES D SPELLMAN MANAGER OF MEDIA RELATIONS AT THE NASD SAID THE PROPOSAL IS PENDING BEFORE THE SEC THE NEW SYSTEM DUBBED NASDAQ PRIMARY RETAIL ORDER VIEW & EXECUTION SYSTEM WON'T PROBABLY BE IMPLEMENTED UNTIL NEXT YEAR AS SOFTWARE AND SYSTEM CHANGES WILL FIRST BE NECESSARY SOES WAS CREATED AFTER THE 1987 STOCKMARKET CRASH TO ENSURE THAT SMALL INVESTORS GET THEIR ORDERS EXECUTED EVEN WHEN TRADING IS HECTIC THROUGH SOES SMALL ORDERS ARE AUTOMATICALLY EXECUTED VIA COMPUTER INSTEAD OF BY TELEPHONE NASDAQ PHONE LINES WENT DOWN DURING THE CRASH AND SOME INVESTORS SAID THEIR ORDERS WENT UNFILLED 9403170129 940317 WHO'S NEWS MELLON BANK'S CAHOUET EARNED 37 MILLION IN 1993 A RISE OF 44 PITTSBURGH MELLON BANK CORP CHAIRMAN FRANK V CAHOUET EARNED 37 MILLION IN SALARY BONUSES AND OTHER COMPENSATION LAST YEAR A 44 INCREASE FROM 1992 MOST OF THE INCREASE CAME IN THE FORM OF A 21 MILLION CASH BONUS WHICH CAN ONLY BE USED TO BUY MELLON STOCK THAT WAS UP FROM 12 MILLION IN 1992 ACCORDING TO MELLON'S 1994 PROXY STATEMENT MR CAHOUET RECEIVED A BASE SALARY OF 760000 COMPARED TO 726667 IN 1992 AND A BONUS OF 625000 UP FROM 570000 HE RECEIVED 196280 IN LIFEINSURANCE PREMIUMS DEFERRED INTEREST AND OTHER SERVICES UP FROM 78300 IN 1992 HE WAS GRANTED 166670 IN STOCK OPTIONS DOWN FROM 290000 OPTIONS GRANTED LAST YEAR MR CAHOUET ALSO EXERCISED OPTIONS ON 318911 SHARES VALUED AT 8 MILLION IN PART BY USING THE 21 MILLION CASH BONUS HE OWNS A TOTAL OF 420420 OPTIONS EACH TO BUY ONE SHARE OF MELLON COMMON STOCK DURING 1993 MELLON A BANKHOLDING COMPANY WITH 36 BILLION IN ASSETS PLUNGED INTO THE MUTUAL FUND BUSINESS BY AGREEING TO ACQUIRE DREYFUS CORP AND COMPLETED THE ACQUISITION OF BOSTON CO THE 61YEAROLD MR CAHOUET ALSO HOLDS THE TITLES OF CHIEF EXECUTIVE OFFICER AND PRESIDENT 9403170128 940317 TECHNOLOGY & HEALTH BORLAND CONSIDERS SALE OF EQUITY STAKE LAYOFFS IN EFFORT TO BOOST PERFORMANCE BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL BORLAND INTERNATIONAL INC SEEKING TO RESTORE PROFITABILITY TO ITS OPERATIONS SAID IT IS CONSIDERING LAYOFFS AND THAT IT MIGHT RAISE CAPITAL BY SELLING A MINORITY STAKE TO AN OUTSIDE INVESTOR TO HELP STREAMLINE OPERATIONS AND IMPOSE TIGHTER CONTROLS ON EXPENSES BORLAND SAID IT NAMED ITS FIRST CHIEF OPERATING OFFICER KEITH A MAIB FORMERLY A PARTNER IN PRICE WATERHOUSE'S DALLAS OFFICE MR MAIB HAS SPENT THE LAST FEW WEEKS EXAMINING BORLAND'S BUSINESS AS PART OF A TEAM OF TURNAROUND SPECIALISTS FROM PRICE WATERHOUSE WHILE INSISTING THAT BORLAND ISN'T IN A CRISIS MR MAIB SAID EVERYTHING IS AN OPTION IN THIS ENVIRONMENT HE CONCEDED THAT IT MIGHT TAKE STRONG MEASURES TO RESTORE HEALTH TO BORLAND WHICH SELLS SOFTWARE PRODUCTS THAT ARE TECHNICALLY DISTINGUISHED BUT WHICH HAS HAD REPEATED DIFFICULTIES IN POSTING A PROFIT ANALYSTS WERE SKEPTICAL ABOUT THE DECISION TO FILL SUCH A KEY POST WITH A CONSULTANT WITH NO OPERATING EXPERIENCE IN THE SOFTWARE INDUSTRY THEY ALSO QUESTIONED WHETHER BELTTIGHTENING WOULD BRING ENOUGH BENEFITS TO BORLAND WHOSE SALES HAVE STAGNATED OVER THE PAST YEAR THIS IS HAPPENING WAY TOO LATE SAID TERENCE M QUINN AN ANALYST AT FURMAN SELZ PEOPLE FAMILIAR WITH THE SITUATION SAY MR MAIB HAS DISCUSSED CUTTING AS MUCH AS 120 MILLION OUT OF BORLAND'S ROUGHLY 400 MILLION IN ANNUAL EXPENSES THEY ALSO SAY THAT NOVELL INC A MAKER OF COMPUTER NETWORKING SYSTEMS IS CONSIDERING MAKING A SIGNIFICANT INVESTMENT IN BORLAND MR MAIB DECLINED COMMENT ON BORLAND'S SPECIFIC PLANS THOUGH HE SAID THE COMPANY IS EXPLORING A LAYOFF MR MAIB WILL REPORT TO PHILIPE KAHN BORLAND'S CHIEF EXECUITVE OFFICER IN RECENT MONTHS MR KAHN HAS SEEN SEVERAL OF HIS MOST SENIOR EXECUTIVES RESIGN INCLUDING THE CHIEF OF THE COMPANY'S PRODUCT DIVISION WHO OFFICIALLY LEFT YESTERDAY MR KAHN SAID THE DECISION TO HIRE A CHIEF OPERATING OFFICER WAS HIS IDEA AND THAT BORLAND'S BOARD BACKED THE MOVE BECAUSE IT FREES MR KAHN A GIFTED PRODUCT DESIGNER AND MARKETER TO CONCENTRATE ON ENSURING THAT BORLAND DELIVERS NEW PRODUCTS AND MORE OF THEM ON TIME SOMETHING THE COMPANY HAS HAD TROUBLE DOING LATELY A MAJOR SUPPLIER OF DATABASE AND SPREADSHEET PROGRAMS FOR PERSONAL COMPUTERS BORLAND IS BOTH A VICTIM AND BENEFICIARY OF THE SHARP DECLINES IN SOFTWARE PRICES IN RECENT YEARS LOW PRICES ON ITS PROGRAMS HAVE ENABLED BORLAND TO STAY IN THE RACE AGAINST THE LIKES OF MICROSOFT CORP AND LOTUS DEVELOPMENT CORP MUCH LARGER RIVALS WHO DOMINATE THE SOCALLED BUSINESS PRODUCTIVITY SOFTWARE CATEGORY BORLAND ALSO HAS BEEN HURT BY A COPYRIGHTINFRINGEMENT LAWSUIT FILED BY LOTUS IN A US DISTRICT COURT IN BOSTON THAT HAS DISRUPTED BORLAND'S SPREADSHEET BUSINESS AND LEFT THE COMPANY OPEN TO A POTENTIALLY LARGE DAMAGE AWARD LOSSES FROM OPERATIONS ALSO HAVE WEAKENED BORLAND SCOTTS VALLEY CALIF THE COMPANY HAD A THIN PROFIT FOR ITS FISCAL THIRD QUARTER ENDED DEC 31 1993 BUT HAS SAID IT WILL POST A LOSS FOR THE QUARTER ENDING MARCH 31 THE IMPENDING LOSS HAS REKINDLED FEARS ABOUT THE COMPANY'S CASH POSITION WHICH LAST YEAR WAS BELIEVED TO BE PERILOUSLY LOW FOR A TIME MR MAIB DISMISSED WORRIES OF A CASH CRUNCH SAYING THAT BORLAND'S CASH IS NOT MATERIALLY DIFFERENT TODAY THAN IT WAS ON DEC 31 WHEN THE COMPANY REPORTED CASH OF 65 MILLION 9403170127 940317 INTERNATIONAL KOREAN MOVE PUTS US TALKS IN DOUBT BY ROBERT S GREENBERGER AND THOMAS E RICKS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION SAID THAT HIGHLEVEL TALKS WITH NORTH KOREA PROBABLY WON'T GO FORWARD NEXT WEEK FOLLOWING PYONGYANG'S REFUSAL TO HONOR A PLEDGE TO GRANT INTERNATIONAL INSPECTORS FULL ACCESS TO ITS DECLARED NUCLEAR FACILITIES THE INTERNATIONAL ATOMIC ENERGY AGENCY SAID IN VIENNA THAT ITS INSPECTORS WERE DENIED ADEQUATE ACCESS TO ONE OF SEVEN NUCLEAR FACILITIES DURING THEIR RECENT INSPECTION AS A RESULT THE INSPECTORS WEREN'T IN A POSITION TO VERIFY THAT THERE HAD BEEN NO DIVERSION OF NUCLEAR MATERIAL AT THE FACILITY AN IAEA STATEMENT SAID THE INSPECTORS WERE TRYING TO DETERMINE WHETHER NORTH KOREA WAS WORKING ON A NUCLEARWEAPONS PROGRAM THE IAEA BOARD OF GOVERNORS PLANS TO MEET MONDAY TO DISCUSS THE SITUATION BEFORE THE MEETING THE GROUP'S 35 MEMBERS WILL TRY TO COBBLE TOGETHER A RESOLUTION ONE POSSIBLE OUTCOME ACCORDING TO A SENIOR US OFFICIAL IS A CONDEMNATION OF NORTH KOREA THAT WOULD URGE THE REGIME TO PERMIT THE COMPLETION OF THE INSPECTION BY A CERTAIN DATE OR FACE FURTHER ACTIONS ANOTHER POSSIBILITY IS THAT THE INTERNATIONAL AGENCY MAY TURN THE MATTER OVER TO THE UNITED NATIONS SECURITY COUNCIL WHICH WOULD DECIDE WHETHER TO IMPOSE TRADE SANCTIONS ON NORTH KOREA PYONGYANG HAS WARNED THAT IT WOULD CONSIDER SUCH A STEP AN ACT OF WAR NORTH KOREA'S FAILURE TO HONOR ITS AGREEMENT TO PERMIT THE INSPECTIONS OF ALL SEVEN SITES SETS OFF A DIPLOMATIC CHAIN REACTION THE US HAD AGREED TO HOLD A THIRD ROUND OF HIGHLEVEL TALKS WITH NORTH KOREA NEXT MONDAY IN GENEVA IF PYONGYANG PERMITTED THE INSPECTION AND ALSO EXCHANGED ENVOYS WITH SOUTH KOREA IN TALKS BETWEEN THE TWO ON DENUCLEARIZATION ISSUES THAT EXCHANGE HASN'T YET BEEN AGREED TO THE TWO SIDES ARE TO HOLD ANOTHER WORKING SESSION ON SATURDAY REFERRING TO THE PLANNED USNORTH KOREA MEETING STATE DEPARTMENT SPOKESMAN MICHAEL MCCURRY SAID THAT IN LIGHT OF THIS ANNOUNCEMENT FROM THE IAEA IT WOULD APPEAR THAT THAT MEETING ON MONDAY IS NOW DOUBTFUL COMMUNICATIONS AS WELL AS PUBLICLY THE US HAS URGED PYONGYANG TO ALLOW COMPLETION OF THE INSPECTION AND THE EXCHANGE OF ENVOYS THE WHITE HOUSE'S HANDLING OF THE DRAWNOUT NEGOTIATIONS WITH NORTH KOREA IS BEING SHARPLY CRITICIZED AT HOME SEN JOHN MCCAIN R ARIZ A CONSERVATIVE MEMBER OF THE SENATE ARMED SERVICES COMMITTEE SAID THE ADMINISTRATION'S NORTH KOREA POLICY HAD FAILED MISERABLY AND AT THE PENTAGON THE FEELING AMONG MANY MILITARY AND CIVILIAN EXPERTS IS THAT THE ADMINISTRATION DIDN'T BARGAIN SKILLFULLY AND THAT THE ONLY QUESTION WAS WHETHER IT NOW COULD SOMEHOW SOFTPEDAL THE ISSUE SO IT WON'T HAVE TO TAKE A HARDER LINE A WAR WITH NORTH KOREA IS THE LAST THING THEY WANT TO HAVE SO MY GUT FEELING IS THAT AT THE END OF THE DAY THEY'LL PUSH AN APPEASEMENT APPROACH SAID ONE PENTAGON EXPERT HE SAID THAT SUCH A POLICY COULD BE JUSTIFIED ON THE GROUNDS THAT THE NORTH KOREAN REGIME EVENTUALLY WILL COLLAPSE AND SO US PATIENCE WILL BE REWARDED THE ADMINISTRATION ALSO ISN'T CERTAIN THAT THE UN WOULD WIELD THE WEAPON OF INTERNATIONAL SANCTIONS CHINA WHICH HAS A VETO AS A PERMANENT MEMBER OF THE SECURITY COUNCIL DOESN'T SUPPORT SUCH A MOVE MR MCCURRY SAID THAT DURING A RECENTLY COMPLETED TRIP TO ASIA BY SECRETARY OF STATE WARREN CHRISTOPHER THE US DISCUSSED THE ISSUE IN CHINA AND JAPAN AND I CANNOT SAY IN EITHER LOCATION THERE WAS ENTHUSIASM ABOUT SANCTIONS DAVID KYD THE IAEA SPOKESMAN SAID THAT AT SIX OF THE SITES AGENCY INSPECTORS WERE PERMITTED TO DO MOST OF THEIR WORK INCLUDING REPLACING CAMERAS AND FILM THAT ARE PART OF A PERMANENT MONITORING SYSTEM HOWEVER HE SAID IN AN INTERVIEW YESTERDAY THE INSPECTORS IMMEDIATELY ENCOUNTERED RESISTANCE AT THE SEVENTH PLANT THE NORTH KOREANS SAY THE FACILITY IS A RADIO CHEMICAL LABORATORY BUT MR KYD SAID THE IAEA DESCRIBES IT AS A REPROCESSING PLANT WHERE PLUTONIUM WHICH IS USED TO MAKE NUCLEAR WEAPONS IS SEPARATED FROM SPENT NUCLEAR FUEL HE SAID THE INSPECTORS WEREN'T PERMITTED TO SAMPLE RADIOACTIVITY LEVELS IN THE BUILDING OR ON CERTAIN PARTS OF THE EQUIPMENT 9403170126 940317 MICHIGAN VOTERS APPROVE SHIFT IN TAXES FOR SCHOOLS AWAY FROM PROPERTY LEVY BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT MICHIGAN VOTERS OVERWHELMINGLY APPROVED A SCHOOL FINANCE REFORM PACKAGE BUT IT IS UNCLEAR HOW THE CHANGE WILL IMPROVE EITHER SCHOOL QUALITY OR EDUCATIONAL FUNDING MICHIGAN VOTERS ON TUESDAY APPROVED HIGHER SALES TAXES AND CIGARETTE TAXES TO FOOT MUCH OF THE 102 BILLION BILL TO FINANCE THE STATE'S PUBLIC SCHOOLS SHIFTING MUCH OF THE BURDEN FROM THE PROPERTYTAX BASE AS THE PRIMARY REVENUE SOURCE THE PLAN ALSO REDISTRIBUTES THE POOL OF FUNDS AMONG SCHOOL DISTRICTS EFFECTIVE MAY 1 MICHIGAN RESIDENTS WILL SEE THE SALES TAX RISE TO 6 FROM 4 MARGINALLY HIGHER THAN THE NATIONAL AVERAGE THE STATE INCOME TAX DECREASES TO 44 FROM 46 THE CIGARETTE TAX INCREASES BY 50 CENTS A PACK TO 75 CENTS AND THE PROPERTYTAX RATE ON MOST HOMES IS REDUCED TO SIX MILLS ON PRIMARY HOMES AND TO 24 MILLS ON ALL OTHER PROPERTY THE STATEWIDE AVERAGE FORMERLY WAS 35 MILLS INCLUDING ALL PROPERTY A MILL EQUALS 1 FOR EVERY 1000 OF A PROPERTY'S VALUE FOR TAX PURPOSES BUSINESSESS WILL HAVE TO PAY MORE FOR PURCHASED GOODS THROUGH THE HIGHER SALES TAX BUT THE STATE'S CORPORATE TAX LEVY REMAINED UNCHANGED AT 235 ALTHOUGH THIS IS STILL NOT THE COMPLETE ANSWER TO EQUITABLE ADEQUATE AND STABLE FUNDING OF THE SCHOOLS IN OUR STATE IT DOES PROVIDE THE BEST OPTION AT THIS TIME SAID DAVID L SNEAD DETROIT PUBLIC SCHOOLS' GENERAL SUPERINTENDENT FOR SOME DISTRICTS IT WILL BE A WINDFALL FOR OTHERS IT WILL BE LIKE BEING ROBBED AT LEAST 40 MICHIGAN SCHOOL DISTRICTS ARE EXPECTED TO ASK VOTERS THIS FALL TO PAY HIGHER MILLAGES TO COVER EXPECTED REVENUE SHORTFALLS AND EVEN THOUGH THE PLAN PASSED OVERWHELMINGLY VOTERS AND POLLS INDICATED MANY VOTED FOR IT ONLY BECAUSE THEY FELT THEY HAD NO OTHER CHOICE OR DIDN'T UNDERSTAND THE ISSUE MICHIGAN'S REPUBLICAN GOV JOHN ENGLER PUT ONLY THE SALESTAX AND CIGARETTETAX PACKAGE BEFORE VOTERS AND CAMPAIGNED MIGHTILY FOR IT IF THAT MEASURE HAD BEEN DEFEATED A PACKAGE BASED ON HIGHER INCOME TAXES WOULD HAVE AUTOMATICALLY GONE INTO EFFECT MICHIGAN VOTERS HAD FIVE TIMES REJECTED BALLOT PROPOSALS SEEKING TO RAISE THE SALES TAX THE MOVE TO OVERHAUL SCHOOL FINANCING STEMS FROM GOV ENGLER'S PLEDGE AS A CANDIDATE IN 1990 TO LOWER PROPERTY TAXES A LOT OF PEOPLE VOTED OUT OF THE THREAT THAT ONE WAS BAD AND THE OTHER WAS WORSE SAID DAVID LITTMANN CHIEF ECONOMIST FOR DETROITBASED COMERICA BANK WE'LL HAVE TO WAIT AND SEE WHAT PEOPLE REALLY THOUGHT IN NOVEMBER HE SAID WHEN MR ENGLER STANDS FOR REELECTION ITS STILL UNCLEAR WHAT EFFORTS WILL BE MADE TO SUBSTANTIALLY IMPROVE THE QUALITY OF MICHIGAN'S SCHOOLS IN THE PAST DECADE MR LITTMANN NOTED PER CAPITA PUPIL SPENDING IN MICHIGAN HAS MORE THAN DOUBLED THE RATE OF INFLATION HOWEVER STUDENT PERFORMANCE HASN'T KEPT PACE WITH SPENDING LEVELS IT LEAVES US WONDERING WHAT IF ANYTHING HAS CHANGED HE ADDED 9403170125 940317 BUSINESS BRIEFS ITT CORP'S SWEDISH SUBSIDIARY ITT FLYGT AB SIGNED A JOINT VENTURE AGREEMENT TO MAKE AND SELL SUBMERSIBLE PUMPS AND MIXERS IN BRAZIL ITT WILL OWN 45 OF THE VENTURE BOSTON CELTICS LP'S COMMUNICATIONS LP UNIT AGREED TO SELL WEEIAM A BOSTON SPORTS AND TALK RADIO STATION TO BACK BAY BROADCASTERS BOSTON TERMS WEREN'T DISCLOSED CORRPRO COS PURCHASED WILSON WALTON GROUP LTD A BRITISH MAKER OF CORROSION ENGINEERING AND PROTECTION SYSTEMS MA HANNA CO ACQUIRED NORTH COAST COMPOUNDERS A PRODUCER OF THERMOPLASTIC ELASTOMERSPLASTICS THAT ACT LIKE RUBBER AND OTHER MATERIALS TERMS WEREN'T DISCLOSED STRUCTURAL DYNAMICS RESEARCH CORP AND SIEMENS NIXDORF INFORMATIONSSYSTEME AG A UNIT OF SIEMENS AG FORMED A JOINT VENTURE COMPANY IN CENTRAL EUROPE SDRC SOFTWARE AND SERVICES GMBH TO SUPPLY SOFTWARE FOR THE COMPUTERASSISTED DESIGN AND ENGINEERING MARKET 9403170124 940317 WHO'S NEWS DATAKEY INC DATAKEY INC MINNEAPOLIS MICHAEL A CARENZO PRESIDENT OF THIS MAKER OF PORTABLE MEMORYSTORAGE DEVICES RESIGNED EFFECTIVE JUNE 30 MR CARENZO 53 YEARS OLD SAID HE IS LEAVING TO PURSUE OTHER INTERESTS JOHN H UNDERWOOD DATAKEY'S CHAIRMAN WILL ASSUME MR CARENZO'S DUTIES UNTIL A SUCCESSOR IS NAMED 9403170123 940317 WHO'S NEWS HAMBURGER HAMLET RESTAURANTS INC HAMBURGER HAMLET RESTAURANTS INC SHERMAN OAKS CALIF JACK A LAVINE AND JAMES J GAFFNEY WERE ELECTED DIRECTORS OF THIS RESTAURANT CHAIN FILLING TWO VACANCIES MR LAVINE 52 YEARS OLD NOW A CONSULTANT IS COFOUNDER AND FORMER CHIEF FINANCIAL OFFICER OF CHILI'S INC A RESTAURANT CHAIN MR GAFFNEY 53 IS A CONSULTANT SPECIALIZING IN CORPORATE PERFORMANCE IMPROVEMENT AND TURNAROUND MANAGEMENT THE VACANCIES WERE CREATED BY THE RESIGNATIONS OF MARNE OBERNAUER JR 74 AND THE COMPANY'S FORMER PRESIDENT PAUL M BROCKMAN 46 9403170122 940317 WHO'S NEWS CELL GENESYS INC CELL GENESYS INC FOSTER CITY CALIF STEPHEN A SHERWIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BIOTECHNOLOGY COMPANY WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR SHERWIN 45 YEARS OLD SUCCEEDS A GRANT HEIDRICH III 41 WHO REMAINS A DIRECTOR ALSO DANIEL HOTH 47 A SENIOR VICE PRESIDENT WAS GIVEN THE ADDITIONAL TITLE OF CHIEF OPERATING OFFICER 9403170121 940317 YOUR MONEY MATTERS IN IPOS IF YOU'RE NOT IN ON DAY ONE IT'S USUALLY GOING TO BE A LOSING PLAY BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL THE ABSOLUTE WORST MOMENT TO BUY AN INITIAL PUBLIC OFFERING IS WHEN YOU READ A NEWSPAPER HEADLINE ABOUT HOW HOT IT IS A NEW STUDY SUGGESTS THE SOONTOBERELEASED THREEYEAR STUDY OF IPOS HOLDS DISHEARTENING NEWS FOR SMALL INVESTORS IT'S USUALLY FRUITLESS TO BUY AN IPO IF LIKE MOST OF US YOU CAN'T GET IT AT THE OFFERING PRICE THAT'S BECAUSE AN ENORMOUS CHUNK OF THE IPO'S GAIN IS LIKELY TO OCCUR ON THE FIRST TRADING DAY PEOPLE OFTEN DON'T REALIZE THAT SO MUCH OF THE MONEY IS MADE ON THE FIRST DAY SAYS CLAUDIA E MOTT PRUDENTIAL SECURITIES INC'S HEAD OF SMALLCAP RESEARCH WHOSE GROUP DID THE STUDY THIS IS A TOUGH PART OF THE MARKET TO BE SUCCESSFUL IN IF YOU'RE NOT ABLE TO GET STOCK RIGHT AT THE OFFERING AS MUTUAL FUNDS AND OTHER BIG INVESTORS DO CONSIDER THE FATE OF SMALL INVESTORS WHO SNAPPED UP REDHOT BOSTON CHICKEN INC NOV 10 THE DAY WHEN EVERY BUSINESS PAGE IN THE US WAS TRUMPETING THE 143 GAIN THE STOCK HAD REGISTERED ON ITS OPENING DAY NOV 9 THESE INVESTORS HAVE SEEN THEIR HOLDINGS SLUMP 7 THROUGH YESTERDAY NEW IPOS ALMOST NEVER TURN OUT TO BE THE NEXT MICROSOFT THAT BROKERS TEND TO SUGGEST THEY WILL BE MOREOVER THE PRUDENTIAL SECURITIES STUDY SHOWS THAT EVEN THE GAINS THAT IPOS MUSTER ON THEIR FIRST DAY TEND TO BE SHORT LIVED HOW SO PERFORMANCE OF NEW ISSUES DURING THE PAST THREE YEARS HAS TENDED TO PEAK AT THREE MONTHS AND FALL OFF SHARPLY AFTER A YEAR OR TWO THE STUDY SHOWS MS MOTT'S TEAM STUDIED 1500 IPOS NOT INCLUDING CLOSEDEND FUNDS THAT CAME TO MARKET IN 1991 1992 AND 1993 SHE SAID SHE UNDERTOOK THE PROJECT PARTLY TO SUPPORT WHAT ACADEMICS INCLUDING FINANCE PROFESSOR JAY R RITTER HAVE DONE IN THE PAST IN STUDYING IPOS BUT ALSO AS AN EYEOPENER FOR PEOPLE INTERESTED IN THIS MARKET SO THEY KNOW WHAT THEY'RE GETTING INTO THE PRUDENTIAL STUDY FOUND THAT ON AVERAGE AN IPO GAINED 109 ON ITS FIRST DAY OF TRADING IN THE PAST THREE YEARS BEATING THE NASDAQ COMPOSITE INDEX BY THE SAME MARGIN OVER THE FIRST WEEK OF TRADING THE AVERAGE ISSUE'S RETURN WAS STILL 109 A JUICY PAYOFF FOR A WEEK'S EFFORT BUT ALAS FOR THE FIRST WEEK ISSUES BOUGHT AT THE FIRSTDAY CLOSE DO AN AVERAGE 01 PERCENTAGE POINT WORSE THAN THE NASDAQ OVER THAT INITIAL WEEK MOREOVER PERFORMANCE FOR THESE ENDOFTHEDAY IPO PURCHASES PEAKS WITH A 33PERCENTAGEPOINT RETURN OVER THE NASDAQ AFTER THE COMPANY HAS BEEN PUBLIC FOR A FULL QUARTER BUT ACTUALLY BECOMES NEGATIVE AGAIN AFTER ONE YEAR MS MOTT SAYS IT'S NOT TO SAY THERE'S NO REASON FOR BUYING YOUNG IPOS AFTER THEY HAVE STARTED TRADING SAYS MS MOTT BUT IT DOES MEAN THAT SUCH STOCK PICKS REQUIRE THE USUAL HARD SCRUTINY NOT JUST A HUNCH OR A FAVORABLE RUMOR NEWISSUE ANALYST ROBERT NATALE WHO EDITS STANDARD & POOR'S CORP'S EMERGING & SPECIAL SITUATIONS NEWSLETTER HAS LONG PREACHED THAT IPOS OUTPERFORM THE MARKET IN BOTH BULL AND BEAR MARKETS DURING THE FIRST THREE MONTHS BUT UNDERPERFORM AFTER THAT HE USUALLY RECOMMENDS SELLING WITHIN THREE MONTHS FOR THOSE FORTUNATE INDIVIDUALS ABLE TO GET AN ALLOTMENT OF SHARES AT THE OFFERING PRICE MR NATALE USUALLY SUGGESTS FLIPPING OR SELLING THE SHARES QUICKLY AND MOVING ON THIS ISN'T THE KIND OF BUYANDHOLD INVESTING THAT MOST SMALL INVESTORS SHOULD CONCENTRATE ON BUT THEN THE IPO MARKET ISN'T FOR MOST SMALL INVESTORS PROFESSIONAL IPO INVESTORS INSIST THERE ARE WAYS TO MAKE MONEY IN IPOS BY CHERRYPICKING AMONG ONES THAT ARE ALREADY PUBLIC BUT IT'S NOT A SIMPLE MATTER OF FINDING A SLUMPING IPO AND ASSUMING IT'LL GO BACK UP SAYS MR NATALE YOU DON'T WANT TO BE BOTTOMFISHING IN THE NEWISSUES MARKET THE LAW OF AVERAGES IS AGAINST YOU WHAT SOME PROFESSIONALS ARE ADEPT AT DOING HOWEVER IS IDENTIFYING IPOS THAT ARE IGNORED IN THE MARKETPLACE FOR ONE REASON OR ANOTHER IF THE COMPANIES BEHIND THE NEW ISSUES ARE STRONG SUCH IPOS CAN BE GOOD BUYS EVEN WEEKS AFTER THEY COME OUT MR NATALE HAS FOUR SUGGESTIONS EXCEPTIONS TO THE RULES HE CALLS THEM OF RECENT IPOS THAT COULD BE GOOD BUYS NOW THEY ARE ROCKTENN A PAPERBOARD COMPANY THAT CAME OUT ON MARCH 3 AT 16 1/2 AND IS BOBBING ALONG AT 16 3/4 ON THE NASDAQ STOCK MARKET TALBOTS A WOMEN'S APPAREL RETAILER THAT HIT THE MARKET AT 19 1/2 IN NOVEMBER AND HAS CLIMBED SHARPLY TO 31 3/4 ON THE NEW YORK STOCK EXCHANGE IT'S TRADING AT AROUND 24 TIMES WALL STREET ESTIMATES FOR 1994 EARNINGS IGEN A MEDICALPRODUCTS COMPANY THAT WENT PUBLIC AT 11 1/2 IN FEBRUARY AND HAS SLUMPED TO 10 1/2 ON NASDAQ TRACTOR SUPPLY A RETAILER THAT FOCUSES ON FARMERS WHOSE STOCK HAS CLIMBED MODESTLY TO 22 3/4 ON NASDAQ FROM ITS FEB 18 OFFERING PRICE OF 20 ALL FOUR COMPANIES HAVE VERY ATTRACTIVE LONGTERM FUNDAMENTALS SAYS MR NATALE RENAISSANCE CAPITAL IN GREENWICH CONN SPECIALIZES IN IPO RESEARCH FOR INSTITUTIONAL INVESTORS ANALYST KATHLEEN SMITH THERE HAS STUDIED THE NUMBERS TOO AND SHE SAYS THAT AT LEAST FOR THE FIRST 90 DAYS OF A STOCK'S LIFE THIS IS AN EXCELLENT MARKET YOU CAN MAKE MONEY BUYING AFTER THE OFFERING THROUGH THE FIRST QUARTER OR SO ONE OF THE STOCKS HER FIRM IS LOOKING AT IS MARTIN MARIETTA MATERIALS A SPINOFF FROM MARTIN MARIETTA THAT CAME OUT AT 23 IN FEBRUARY AND IS MEANDERING AT 22 3/4 NOW IT'S AN EXAMPLE OF A PROMISING IPO THAT PROFESSIONALS MIGHT BUY ON THE FIRST SIGN THAT IT MIGHT FINALLY BUILD UP SOME MOMENTUM WE'RE WAITING FOR THE TECHNICALS TO LOOK BETTER SAYS MS SMITH MS SMITH SAYS INVESTORS HAVE TO BE CAREFUL ABOUT BUYING POSTIPO STOCKS THAT ARE ILLIQUID WITH TOO FEW SHARES AVAILABLE TO TRADE OR PRICED AT EUPHORIC LEVELS AS IS STILL THE CASE WITH BOSTON CHICKEN DESPITE ITS COMEDOWN BUT DON'T DISMISS THE IDEA OF BUYING POSTIPO STOCKS ENTIRELY SAYS MS SMITH THERE ARE A LOT OF OTHER INVESTORS WHO AREN'T NECESSARILY BUYING ON THE OFFERING THAT ADD THESE COMPANIES TO THEIR PORTFOLIOS LATER SHE SAYS ADDING IF YOU'RE A SMALL INVESTOR ONLY BUY STOCKS THAT YOUR BROKERAGE FIRM HAS KNOWLEDGE ABOUT ANOTHER IPO PRO CHARLES RONSON OF BALESTRA CAPITAL SAYS ONE RECENT IPO HE BELIEVES IS UNDERPRICED NOW IS CONCORD HOLDING A COMPANY THAT ADMINISTERS BANKOWNED MUTUAL FUNDS IT CAME OUT AT 12 1/2 IN LATE FEBRUARY AND IS AT 13 1/4 NOW HE SAYS STATISTICS ABOUT OVERALL IPO PERFORMANCE DON'T MATTER BECAUSE THE INDIVIDUAL STOCKS' PERFORMANCES ARE ALL OVER THE MAP IT'S A MATTER OF DOING STOCKPICKING AS WITH ANY OTHER STOCKS HE SAYS THE PRUDENTIAL SECURITIES STUDY HAS ONE MORE SOBERING FINDING FOR INVESTORS AS TIME GOES ON IT'S HARDER AND HARDER TO PICK THE WINNERS INVESTORS WHO CAN'T GET STOCK AT THE OFFER PRICE HAVE LESS THAN A 50 CHANCE OF PICKING A WINNER IF THEY BUY STOCK THE DAY AFTER THE OFFERING AND THE ODDS DON'T REALLY IMPROVE OVER TIME THE STUDY SAYS AFTER TWO YEARS 35 OF IPOS BOUGHT AT THE FIRSTDAY CLOSE HAD OUTPERFORMED THE NASDAQ 9403170120 940317 SMALL STOCK FOCUS BUYING PUSHES STOCKS TO RECORD LEVEL SELL PROGRAMS WALLOP BIG CYCLICALS BY CAITLIN MOLLISON AND THOMAS GRANAHAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK A BUSY BUYING DAY TOOK SMALLCOMPANY STOCK PRICES TO RECORD LEVELS WHILE SHARP WAVES OF SELL PROGRAMS ATTACKED BIG CYCLICALS NEAR THE CLOSE TRADERS SAID SMALLER STOCKS ALREADY BUOYED BY FIRM BOND PRICES YESTERDAY IGNORED PROGRAM SELLING THAT WALLOPED THE DOW JONES INDUSTRIAL AVERAGE DURING THE LAST FEW MINUTES OF TRADING THE INDUSTRIALS HAD WORKED THEMSELVES TO A 14POINT GAIN ONLY TO BE TAKEN DOWN TO A 1 1/2POINT DEFICIT ON THE DAY MEANWHILE THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS SOARED 225 POINTS OR 084 TO 26911 PAST ITS CLOSING RECORD OF 26762 SET FEB 2 NASDAQ STOCK MARKET ISSUES SURGED ON BROAD STRENGTH BUT MERGER NEWS IN THE COMMUNICATIONS AND TECHNOLOGY GROUPS PROVIDED MUCH OF THE IMPETUS THE NASDAQ COMPOSITE INDEX JUMPED 547 POINTS OR O69 TO 79899 JUST BELOW ITS RECORD OF 80047 THAT HAS STOOD SINCE JAN 31 ADVANCING NASDAQ ISSUES OVERPOWERED DECLINERS 1736 TO 1382 NASDAQ NATIONAL MARKET VOLUME FIRMED TO 291011800 SHARES FROM 263959900 TUESDAY TOTAL VOLUME ROSE TO 338006000 SHARES FROM 303080000 TUESDAY THE TREASURY'S LONG BOND ROSE NEARLY A POINT WITH ITS YIELD FALLING TO 679 THE BOND MARKET GAINED STRENGTH FROM THE RELEASE YESTERDAY OF FEBRUARY'S CONSUMER PRICE REPORT WHICH SHOWED INFLATION REMAINS UNDER CONTROL ROBERT ANTOLINI HEAD OF OVERTHECOUNTER TRADING AT DONALDSON LUFKIN & JENRETTE SAID SOFTWARE STOCKS WERE THE STARS YESTERDAY AS THE TECH GROUP TOOK A RIDE HIGHER AFTER ALDUS SAID IT WILL MERGE WITH ADOBE SYSTEMS AS REPORTED LATE TUESDAY THE TWO SOFTWARE COMPANIES WILL UNITE IN A STOCK SWAP SEATTLEBASED ALDUS SOARED 6 TO 32 1/4 WHILE ADOBE MOUNTAIN VIEW CALIF DECLINED 3 TO 29 1/2 ELSEWHERE IN THE GROUP DIGIDESIGN MENLO PARK CALIF GAINED 1 3/4 TO 16 1/2 AND DATA GENERAL WESTBORO MASS ROSE 1/2 TO 7 7/8 ON THE NEW YORK STOCK EXCHANGE THE DAY'S BIG GAINER CENTEX TELEMANAGEMENT SOARED 5 5/8 OR 1154 HIGHER TO 10 1/2 AND TOPPED THE NASDAQ MOSTACTIVE LIST WITH 125 MILLION SHARES UP FROM AVERAGE DAILY TURNOVER OF JUST 142400 SHARES NEWS OF A 9PERSHARE TENDER OFFER BY MFS COMMUNICATIONS FOR CENTEX SAN FRANCISCO WAS BEHIND THE STOCK'S RISE MFS BASED IN OMAHA NEB CLIMBED 4 3/8 TO 35 1/8 ALTHOUGH SMALLCAP STOCKS WERE BOOSTED BY GOOD NEWS YESTERDAY SOME ANALYSTS FEEL THE OVERALL PICTURE FOR THE GROUP IS BRIGHT THIS IS STILL A LONGTERM BULL MARKET THAT OFFERS A LOT OF DEMAND FOR THOSE SMALLER COMPANIES THAT CAN OUTGROW A STEADYEDDIE ECONOMIC RECOVERY SAID ALFRED E GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS INC ANOTHER BIG GAINER CALIFORNIA MICRO DEVICES MILPITAS CALIF SOARED 7 1/4 OR 518 TO 21 1/4 AFTER THE COMPANY ANNOUNCED IT HAD FORMED A STRATEGIC ALLIANCE WITH HITACHI METALS TO EXPAND THE MARKET FOR CALIFORNIA MICRO'S THINFILM INTEGRATED PASSIVE ELECTRONIC COMPONENTS HITACHI METALS WILL BUY 880000 CALIFORNIA MICRO SHARES FOR 24 A SHARE A TOTAL INVESTMENT OF 211 MILLION AND PRO FORMA OWNERSHIP OF ABOUT 10 OF THE COMPANY JEFFERIES GROUP GAINED 9 1/2 OR 31 TO 40 1/8 THE LOS ANGELESBASED BROKERAGE FIRM SAID TUESDAY IT PLANS TO SELL A STAKE IN ITS AUTOMATED STOCK TRADING SUBSIDIARY THROUGH AN INITIAL PUBLIC OFFERING AT A PROPOSED PRICE RANGE OF 12 TO 14 A SHARE THE UNIT HAS A HYPOTHETICAL MARKET VALUE OF ABOUT 240 MILLION SLIGHTLY HIGHER THAN THE MARKET VALUATION OF JEFFERIES AS A WHOLE IN OTHER MERGER NEWS MARK CONTROLS SKOKIE ILL JUMPED 2 OR 126 TO 17 7/8 AFTER SIGNING A DEFINITIVE AGREEMENT WITH DANAHER UNDER WHICH DANAHER WILL ACQUIRE MARK FOR ABOUT 127 MILLION INCLUDING THE ASSUMPTION OF ABOUT 38 MILLION IN DEBT AMERICAN EDUCATIONAL PRODUCTS CLIMBED 20 OR 3/4 TO 4 1/2 ON THE HEELS OF STRONG FOURTHQUARTER EARNINGS THE BOULDER COLOBASED EDUCATIONAL PRODUCTS COMPANY POSTED NET INCOME OF FOUR CENTS A SHARE FOR THE QUARTER COMPARED WITH ONE CENT IN THE YEAREARLIER PERIOD NOBILITY HOMES AN OCALA FLABASED MAKER OF MOBILE HOMES GAINED 1 3/4 TO 12 3/4 THE COMPANY REPORTED FIRSTQUARTER NET INCOME OF 99 CENTS A SHARE INCLUDING GAINS COMPARED WITH 39 CENTS IN THE YEAREARLIER PERIOD ENZON PISCATAWAY NJ WAS THE BENEFICIARY OF POSITIVE COMMENTS FROM WERTHEIM SCHRODER & CO GAINING 11/16 OR 155 TO 5 1/8 THE BROKERAGE FIRM INITIATED COVERAGE OF THE STOCK WITH A BUY RATING AND ADDED IT TO ITS RECOMMENDED LIST IN AMERICAN STOCK EXCHANGE TRADING HANGER ORTHOPEDIC GROUP IMPROVED 5/8 TO 6 3/8 THE BETHESDA MDBASED COMPANY SAID IT EXPECTS TO REPORT NET INCOME FROM CONTINUING OPERATIONS OF EIGHT CENTS A SHARE FOR THE 1993 FOURTH QUARTER UP FROM TWO CENTS A SHARE A YEAR AGO PENWEST SLIPPED 2 1/2 OR 109 TO 20 1/2 AFTER REPORTING SECONDQUARTER NET INCOME OF 12 CENTS A SHARE COMPARED WITH 23 CENTS A SHARE FOR THE YEARAGO PERIOD THE BELLEVUE WASH COMPANY MANUFACTURES CHEMICAL STARCHES SHARES OF XICOR WERE OFF 7/16 AT 2 1/2 WERTHEIM LOWERED ITS RATING ON THE STOCK TO BELOW MARKET PERFORMER FROM MARKET PERFORMER REFLECTING A DOUBLING OF THE STOCK'S PRICE OVER THE PAST YEAR WERTHEIM ALSO CUT ITS 1994 EARNINGS ESTIMATE FOR THE MILPITAS CALIF SEMICONDUCTOR CONCERN TO 10 CENTS A SHARE FROM 20 CENTS 9403170119 940317 KEMPER HOLDER PUTS PRESSURE ON FIRM TO CONSIDER GE CAPITAL TAKEOVER OFFER BY STEVEN LIPIN AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL SOUTHEASTERN ASSET MANAGEMENT A MEMPHIS TENNBASED MONEY MANAGER DISCLOSED THAT IT HOLDS AN 81 STAKE IN KEMPER CORP AND PUT PRESSURE ON KEMPER TO CONSIDER AN UNFRIENDLY 22 BILLION TAKEOVER OFFER FROM GE CAPITAL CORP IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SOUTHEASTERN SAID IT MAY SEEK TO HAVE DISCUSSIONS WITH KEMPER'S MANAGEMENT OR BOARD ANY POTENTIAL ACQUIRER OF KEMPER OR OTHER KEMPER SHAREHOLDERS TO ENHANCE SHAREHOLDER VALUE SOUTHEASTERN DECLINED TO COMMENT FURTHER THE MANAGEMENT AT KEMPER A MONEYMANAGEMENT BROKERAGE AND INSURANCE COMPANY HAS REJECTED GE CAPITAL'S 55ASHARE OFFER SAYING IT WAS NOT IN THE BEST INTEREST OF ITS SHAREHOLDERS FOLLOWING THE REJECTION GE CAPITAL WENT PUBLIC EARLIER THIS WEEK WITH ITS OFFER IN AN EFFORT TO BRING SHAREHOLDER PRESSURE TO BEAR ON KEMPER'S MANAGEMENT AND DIRECTORS SOUTHEASTERN'S CAREFULLY WORDED STATEMENT SUGGESTS THAT THIS BEAR HUG OF KEMPER IS WORKING AFTER MEETING INFORMALLY LAST NIGHT KEMPER'S DIRECTORS WILL MEET TODAY TO FORMALLY REVIEW THE OFFER FROM GE CAPITAL THE FINANCIALSERVICES UNIT OF GENERAL ELECTRIC CO YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING KEMPER STOCK FELL 2 TO 5975 AFTER SOARING THE PAST TWO TRADING DAYS FROM 4075 A SHARE SOUTHEASTERN WHICH MANAGES 33 BILLION SAID IN ITS FILING THAT ANY TALKS WITH KEMPER OR OTHERS ARE INTENDED TO ENHANCE SHAREHOLDER VALUE AND TO BE SUPPORTIVE OF ITS CLIENTS' INHERENT INTERESTS AND RIGHTS AS OWNERS OF THE SECURITIES A SPOKESWOMAN FOR KEMPER SAID A MEETING WITH SOUTHEASTERN MIGHT BE PREMATURE BECAUSE THE BOARD HASN'T CONSIDERED THE GE CAPITAL OFFER YET PEOPLE CLOSE TO GE CAPITAL EXPECT KEMPER'S BOARD WILL REJECT THE OFFER ONE PERSON FAMILIAR WITH GE CAPITAL SAID THAT THE COMPANY CURRENTLY HAS NO PLANS TO LAUNCH A HOSTILE TENDER OFFER FOR KEMPER ESPECIALLY WITH KEMPER'S ANNUAL SHAREHOLDERS MEETING COMING UP IN MAY NEW SEC PROXY RULES ALLOW GREATER COMMUNICATIONS AMONG STOCKHOLDERS PREVIOUSLY ANY DISCUSSIONS AMONG MORE THAN TEN SHAREHOLDERS WOULD BE SUBJECT TO REGULATORY OVERSIGHT THIS IS FRANKLY THE SORT OF PRESSURE WHICH RIGHTFULLY SHOULD EMERGE HERE SAID ONE PERSON FAMILIAR WITH GE CAPITAL LET'S SEE HOW REAL INSTITUTIONAL ACTIVISM IS SOUTHEASTERN ASSET SAID IT SPENT ABOUT 107 MILLION TO ACQUIRE KEMPER SHARES PURCHASED BETWEEN JAN 25 AND MARCH 11 AT PRICES RANGING FROM 3733 TO 4132 EACH ITS TIMING COULDN'T HAVE BEEN BETTER GE CAPITAL CHAIRMAN GARY WENDT VISITED KEMPER CHAIRMAN DAVID MATHIS ON JAN 26 FOUR SHAREHOLDER LAWSUITS HAVE BEEN FILED AGAINST KEMPER THIS WEEK IN DELAWARE CHANCERY COURT CHARGING THAT THE COMPANY BREACHED ITS DUTY TO SHAREHOLDERS BY NOT CONSIDERING GE CAPITAL'S OFFER KEMPER DECLINED TO COMMENT ANALYSTS BELIEVE THAT IF A TAKEOVER BATTLE ENSUES KEMPER'S STOCK COULD ULTIMATELY RISE TO 70 A SHARE GE CAPITAL ALREADY HAS SAID IT WOULD CONSIDER RAISING ITS BID IF IT HAD ADDITIONAL FINANCIAL INFORMATION IN PARTICULAR ABOUT KEMPER'S HOLDINGS OF REAL ESTATE INVESTMENT BANKERS HAVE BEEN SCRAMBLING TO FIND OTHER POTENTIAL SUITORS OR FRIENDLY WHITE KNIGHTS TO OFFER A HIGHER BID FOR KEMPER SOME BANKERS HAVE SUGGESTED THE IDEA OF A CONSORTIUM BID IN WHICH A GROUP OF BUYERS WOULD ACQUIRE THE COMPANY BUT A FRIENDLY WHITEKNIGHT RESCUER COULD BE HARD TO FIND ONE OF THE INSURANCE COMPANIES STRONG ENOUGH TO MOUNT A CHALLENGE TO GE'S OFFER WOULD BE AMERICAN INTERNATIONAL GROUP INC WHILE THE COMPANY HAS BEEN OPEN ABOUT ITS DESIRE TO EXPAND ITS ANNUITY AND LIFE INSURANCE OPERATIONS PEOPLE ON WALL STREET SAY AIG CHAIRMAN MAURICE GREENBERG IS UNLIKELY TO GET INTO A BIDDING WAR AIG DECLINED TO COMMENT 9403170118 940317 WHO'S NEWS ROBERT C PEW III QUITS STEELCASE JOB HEADING NORTH AMERICAN LINES GRAND RAPIDS MICH ROBERT C PEW III PRESIDENT OF STEELCASE INC'S NORTH AMERICAN OPERATIONS AND A CANDIDATE TO RUN THE COMPANY ABRUPTLY RESIGNED TO PUT A LITTLE MORE BALANCE BACK INTO MY PERSONAL LIFE MR PEW 43 YEARS OLD IS THE GRANDSON OF ONE OF THE FOUNDERS OF THE WORLD'S LARGEST OFFICEFURNITURE MAKER MANY BELIEVED HE WOULD SUCCEED HIS FATHER ROBERT C PEW 71 YEARS OLD AS CHAIRMAN THE YOUNGER MR PEW WILL CONTINUE TO SERVE ON THE BOARD AND WILL REMAIN ON THE EXECUTIVE COMMITTEE SOME INDUSTRY OBSERVERS SAID MR PEW HAD BECOME UNHAPPY WITH COSTCUTTING MEASURES IMPLEMENTED BY JERRY MYERS STEELCASE'S CHIEF EXECUTIVE OFFICER AND WITH RECENT EMPLOYEE EFFORTS TO UNIONIZE STEELCASE BECAUSE OF DISSATISFACTION WITH MANAGEMENT MR PEW SAID HE ISN'T LEAVING BECAUSE HE'S DISSATISFIED BUT FEELS THAT MANY OF THE CHANGES WE'VE TRIED TO PUT IN PLACE OVER THE PAST FIVE YEARS HAVE BEEN IMPLEMENTED NOW HE SAID IT IS TIME FOR ME TO CHANGE DIRECTION AND PUT BALANCE BACK IN MY LIFE STEELCASE IS A CLOSELY HELD COMPANY DESCENDANTS OF MR PEW'S GRANDFATHER WALTER IDEMA HOLD A MAJORITY STAKE OF THE COMPANY MR PEW SAID DESCENDANTS OF THE OTHER TWO FOUNDERS PETER WEGE AND DAVID HUNTING HOLD A SUBSTANTIAL PORTION AND ARE REPRESENTED ON THE BOARD 9403170117 940317 ENTERPRISE GROUP WITHDRAWS SUPPORT FOR CLINTON HEALTH PROGRAM SMALL BUSINESS COUNCIL SAYS THERE'S NO SENSE IN BEATING A DEAD HORSE' BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ONE OF THE FEW SMALLBUSINESS GROUPS SUPPORTING PRESIDENT CLINTON'S HEALTHCARE PLAN IS NO LONGER A FRIEND OF BILL ON THAT ISSUE THE SMALL BUSINESS LEGISLATIVE COUNCIL A COALITION OF NEARLY 100 TRADE ASSOCIATIONS WITHDREW ITS INFORMAL SUPPORT FOR MR CLINTON'S PROPOSAL AT THE SAME TIME MANY SMALLBUSINESS GROUPS ARE OPPOSING AN ALTERNATIVE PLAN BEING DRAFTED BY A HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE HEADED BY REP PETE STARK D CALIF THE DEFECTION IS A BLOW TO WHITE HOUSE HOPES OF HAVING SOME FRIENDLY SMALLBUSINESS VOICES FOR ITS HEALTHCARE PLAN THESE WOULD HELP OFFSET THE CHORUS OF OPPOSITION LED BY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE COUNTRY'S LARGEST SMALLBUSINESS GROUP UNTIL NOW THE COUNCIL HAS BEEN POSITIVE ABOUT THE ADMINISTRATION'S REFORM EFFORTS BECAUSE THE GROUP THOUGHT THE PLAN WAS COMPREHENSIVE AND MIGHT CONTROL COSTS BUT THE COALITION'S BOARD VOTED TO REJECT THE CLINTON PLAN AS WELL AS THOSE PROPOSED BY REP JIM COOPER D TENN AND SEN JOHN CHAFEE R RI WE'VE DECIDED IT'S TIME TO STOP TYING OURSELVES TO INITIATIVES THAT AREN'T GOING ANYWHERE SAID JOHN SATAGAJ THE COUNCIL'S PRESIDENT WE DON'T WANT A PITCHED BATTLE OVER THESE THREE BILLS AND THEN BE LEFT WITHOUT ENOUGH TIME TO COME UP WITH A COMPREHENSIVE REFORM PACKAGE THERE'S NO SENSE IN BEATING A DEAD HORSE THE COUNCIL'S DEFECTION COMES AS THE COUNCIL AND SEVERAL OTHER SMALLBUSINESS ORGANIZATIONS OPPOSE THE ALTERNATIVE PLAN OF REP STARK HIS PLAN WOULD IMPOSE A 08 PAYROLL TAX EXPAND THE MEDICARE SYSTEM AND MAKE MOST EMPLOYERS TO HELP PAY FOR THEIR WORKERS' HEALTH INSURANCE BEGINNING IN 1997 ON TUESDAY THE PANEL VOTED BY A 65 MARGIN TO KEEP THE EMPLOYER MANDATE IN ITS BILL REP STARK ALIENATED THE SMALLBUSINESS LOBBY EVEN BEFORE HIS PANEL BEGAN WRITING A HEALTHCARE BILL THIS WEEK ON A RECENT INTERVIEW ON CABLE NEWS NETWORK'S NEWSMAKER SATURDAY WHEN THE LAWMAKER WAS ASKED ABOUT FASHIONING A HEALTHCARE COMPROMISE HE SAID SMALL BUSINESSMEN ARE GOING TO GRIPE IF THEY HAVE TO PAY TWO CENTS WRITE THEM OFF THEY'RE SMALL MINDS THEY'RE IRRELEVANT TO THIS DISCUSSION THE STARK PROPOSAL RESPONDED THE COUNCIL'S MR SATAGAJ IS EXPECTED TO BARELY PASS HIS OWN SUBCOMMITTEE AND I DOUBT THE FULL HOUSE WILL DECIDE SMALL BUSINESS IS IRRELEVANT JACK FARIS PRESIDENT OF THE NFIB SAID MR STARK'S TREMENDOUS DISLIKE FOR SMALL BUSINESS IS VERY CLEAR HE JUST KNOWS THE CLINTON PLAN WON'T WORK AND THAT A SINGLEPAYER GOVERNMENTRUN SYSTEM WON'T WORK EITHER WE AGREE SMALLBUSINESS GROUPS SUCH AS NATIONAL SMALL BUSINESS UNITED DON'T LIKE MR STARK'S PLAN ANY MORE THAN HIS RHETORIC AMONG OTHER THINGS MANY SMALL COMPANIES OPPOSE NEW PAYROLL TAXES TO PAY FOR HEALTHCARE OVERHAUL SAID JOHN POLK PRESIDENT OF THE CLEVELANDBASED COUNCIL OF SMALLER ENTERPRISES A PRIVATE HEALTHCARE PURCHASING GROUP FOR SMALL FIRMS YESTERDAY THE HOUSE SMALL BUSINESS COMMITTEE RELEASED A REPORT BY CONGRESS'S GENERAL ACCOUNTING OFFICE CONCLUDING THAT HAWAII'S HEALTHCARE SYSTEM WHICH REQUIRES ALL EMPLOYERS TO HELP PAY FOR THEIR WORKERS' INSURANCE HASN'T HURT MOST SMALL BUSINESSES IN THE STATE AND HAS RESULTED IN LOWER HEALTH INSURANCE PREMIUMS HAWAII'S EMPLOYER MANDATE IS SIMILAR TO PRESIDENT CLINTON'S PROPOSAL BUT THE STUDY ADDED THAT A NATIONWIDE EMPLOYER MANDATE MIGHT NOT REAP THE SAME RESULTS TEENA RASMUSSEN OWNER OF PARADISE FLOWER FARMS IN MAUI AND AN NFIB MEMBER TOLD THE PANEL THAT THE EMPLOYER MANDATE HAS SLOWED WAGE INCREASES IN HAWAII AND COMPLAINED THAT THE STATE HAS ADDED COVERAGE FOR SEVERAL NEW KINDS OF HEALTH CARE WITHOUT INCREASING THE EMPLOYEES' SHARE OF THE COST WITHOUT RESTRICTIONS SHE SAID YOU'LL HAVE INCREDIBLE PRESSURE TO ADD CHIROPRACTORS PSYCHOLOGISTS AND HERBAL HEALERS TO BE PROVIDERS OF HEALTH CARE SOME SMALLBUSINESS LOBBYISTS SAY THE SEARCH FOR A COMPROMISE ON THE KEY ISSUE OF EMPLOYER MANDATES HAS STALLED NOBODY'S WILLING TO BLINK EITHER ON CAPITOL HILL OR THE WHITE HOUSE SAID TOM CATOR A SMALLBUSINESS LOBBYIST FOR SEVERAL GROUPS BUT JOHN MOTLEY NFIB'S CHIEF LOBBYIST SAID WHILE THERE STILL ISN'T ANY WORKABLE HEALTHREFORM COMPROMISE IN SIGHT HE BELIEVES CONGRESS WILL PASS LEGISLATION THIS SESSION BEFORE WE CAN GET TO THE TABLE AND FIND OUT WHAT THE COMPROMISE IS WE HAVE TO PROVE TO THE PRESIDENT AND HIS ALLIES LIKE MR STARK THAT THEY CAN'T BRING THEIR LEGISLATION TO THE FLOOR HE SAID 9403170116 940317 BUSINESS BRIEF WALMART STORES INC CANADA BACKS PLAN TO BUY STORES FROM WOOLWORTH UNIT THE CANADIAN GOVERNMENT CONDITIONALLY APPROVED A PROPOSED ACQUISITION BY WALMART STORES INC OF 122 WOOLCO STORES IN CANADA FROM WOOLWORTH CORP'S CANADIAN SUBSIDIARY IN OTTAWA THE GOVERNMENT SAID WALMART AS PART OF ITS ACQUISITION PROPOSAL PLEDGED TO OFFER EMPLOYMENT TO ALMOST ALL OF WOOLCO'S 16000 EMPLOYEES WALMART ALSO PLEDGED TO GIVE CANADIAN SUPPLIERS A FULL AND FAIR OPPORTUNITY TO SUPPLY WALMART'S CANADIAN STORES AND TO INCREASE ITS PURCHASES OF CANADIAN BOOKS MAGAZINES VIDEO AND AUDIO RECORDINGS 9403170115 940317 STELCO INVESTORS' WARRANTS HAMILTON ONTARIO STELCO INC SAID INVESTORS EXERCISED 222 MILLION WARRANTS ISSUED IN 1991 RAISING 125 MILLION CANADIAN DOLLARS US916 MILLION FOR THE STEEL PRODUCER THE WARRANTS WHICH EXPIRED TUESDAY ENTITLED THE HOLDER TO PURCHASE ONE SERIES A COMMON SHARE FOR C5625 THOSE SHARES CLOSED AT C9875 TUESDAY ON THE TORONTO STOCK EXCHANGE STELCO HAS ABOUT 103 MILLION SHARES OUTSTANDING INCLUDING THOSE ISSUED FROM THE WARRANTS A STELCO OFFICIAL SAID THE COMPANY WILL USE THE PROCEEDS FOR GENERAL CORPORATE PURPOSES 9403170114 940317 PLASTIC ADDITIVES FIRM FORMED NEW YORK ASAHI DENKA KOGYO MITSUBISHI CORP AND MITSUBISHI INTERNATIONAL CORP SAID THEY FORMED A USBASED JOINTVENTURE COMPANY AMFINE CHEMICAL CORP TO MAKE PLASTIC ADDITIVES AMFINE WILL MAKE AND MARKET ENVIRONMENTALLY SAFE HIGHPERFORMANCE PLASTIC ADDITIVES THE COMPANIES SAID AMFINE IS 60 OWNED BY ASAHI DENKA 30 BY MITSUBISHI AND 10 BY MITSUBISHI INTERNATIONAL 9403170113 940317 MARKETING & MEDIA ADVERTISING ADIDAS TRIES IN MODEST CAMPAIGN TO FILL BIG SHOES WORN BY RIVALS BY KEVIN GOLDMAN A NEW YORK SUBWAY AD FOR ADIDAS'S ATHLETIC SHOES AND OTHER SPORTSWEAR SHOWS NEW YORK KNICKS ALLSTAR GUARD JOHN STARKS AND THE CAPTION BUST'N IT AND SURVIVING WELL NOT EXACTLY MR STARKS IS SIDELINED PROBABLY FOR THE REMAINDER OF THE SEASON FOLLOWING KNEE SURGERY THIS WEEK BUT HE IS EXPECTED TO RETURN FOR THE PLAYOFFS A HERO REEMERGING JUST IN TIME GIVEN THAT SCENARIO MR STARKS COULD PROVE TO BE A MOST APPROPRIATE SPOKESMAN FOR THE ADIDAS AMERICA DIVISION OF ADIDAS AG AT LEAST THE GERMAN SPORTSWEAR COMPANY HOPES SO IT WAS THE STANDARD OF ATHLETIC FOOTWEAR IN THE 1970S BEFORE THE COMPANY LOST ITS FOOTING AND WAS OVERTAKEN BY RIVALS NIKE AND REEBOK INTERNATIONAL NOW ADIDAS IS POISED TO SPRINT TOWARD A MODEST COMEBACK WITH THE HELP OF ROBERT LOUISDREYFUS FORMER CHIEF EXECUTIVE OF THE SAATCHI & SAATCHI ADVERTISING COMPANY WHO TOGETHER WITH A GROUP OF INVESTORS PAID 615 MILLION MARKS 373 MILLION IN FEBRUARY 1993 FOR A CONTROLLING STAKE ADIDAS IS SHOWING SIGNS OF SALES GROWTH THOUGH STILL MINUTE COMPARED WITH ITS BIGFOOT COMPETITORS IT REPORTED US FOOTWEAR SALES OF 190 MILLION IN 1993 UP 3 FROM THE PREVIOUS YEAR TO RANK NO 8 LAST YEAR ACCORDING TO THE NEWSLETTER SPORTING GOODS INTELLIGENCE IN GLEN MILLS PA NO 1 NIKE POSTED A 10 SALES INCREASE TO 19 BILLION FOLLOWED BY REEBOK WITH AN 11 SALES PLUNGE TO 13 BILLION ADIDAS AG IS EXPECTED TO REPORT SHORTLY THAT ITS WORLDWIDE GROUP RECORDED A CONSOLIDATED PRETAX PROFIT OF 23 MILLION MARKS LAST YEAR COMPARED WITH A LOSS OF 149 MILLION MARKS IN 1992 LAST YEAR'S PROFIT INCLUDED WRITEOFFS OF 70 MILLION MARKS ADIDAS'S STRATEGY IN THE US IS TO PERSUADE YOUNG URBAN CONSUMERS TO BUY THE PRODUCT WITH THE FAMILIAR THREE STRIPES WE'RE WORKING ON GETTING MORE SHELF SPACE WHICH WILL HOPEFULLY INCREASE OUR SALES MR LOUISDREYFUS SAID IN AN INTERVIEW UNTIL THEN WE'RE GOING TO GO SLOWLY WITH ADVERTISING THIS MONTH ADIDAS AMERICA BEGINS AIRING A NEW TELEVISION COMMERCIAL DURING THE NCAA MARCH MADNESS BASKETBALL CHAMPIONSHIP TOURNAMENT ON CBS THE COMMERCIAL FROM TEAM ONE ADVERTISING A SUBSIDIARY OF SAATCHI & SAATCHI ADVERTISING WORLDWIDE STARS HYPERACTIVE ESPN ANALYST DICK VITALE AS THE BRAIN OF A TEENAGE BASKETBALL PLAYER WHO IS WEARING ADIDAS SNEAKERS MR VITALE SHOUTS ENCOURAGEMENT TO THE LAD WHO IS SEEN WALKING OFF THE COURT SHAKING HIS HEAD AND TRYING TO ELIMINATE THE INCESSANT LOUD BUZZ BESIDES THAT COMMERCIAL ADIDAS'S ADVERTISING IS CONFINED TO SUBWAY POSTERS IN NEW YORK CITY AND TWO PAINTED BRICK WALLS IN HARLEM AND BROOKLYN NY NEW NATIONAL TELEVISION ADS SCHEDULED TO BE FILMED SHORTLY WITH MR STARKS WERE POSTPONED INDEFINITELY BECAUSE OF HIS INJURY NIKE AND REEBOK HAVE BECOME THE COKE AND PEPSI OF ATHLETIC APPAREL SAYS CINDY YOSHIMURA DIRECTOR OF MARKETING SERVICES AT ADIDAS AMERICA WE NEED TO COMMUNICATE TO CUSTOMERS IN AN ENTIRELY DIFFERENT WAY OUR ADVERTISING IS TRYING TO BE AN HONEST REFLECTION OF THE ATHLETE HIMSELF AND NOT TRYING TO THINK OF THE NEXT CUTE TAGLINE FOR INSTANCE SHE SAYS PHRASES ON THE SUBWAY POSTERS CAME DIRECTLY FROM MR STARKS WHILE HE WAS TALKING ABOUT PLAYING BASKETBALL MS YOSHIMURA ADMITS ADIDAS DOESN'T HAVE THE DEEP POCKETS OF ITS COMPETITORS WE'RE NOT GOING TO THROW DOLLAR AFTER DOLLAR AFTER THEM SHE SAYS THAT'S FOR SURE ACCORDING TO COMPETITIVE MEDIA REPORTING WHICH TRACKS AD SPENDING ADIDAS SPENT ONLY 12 MILLION FOR ADVERTISING LAST YEAR COMPARED WITH 1325 MILLION FROM NIKE THE ADIDAS FIGURE WAS DOWN FROM 1992 WHEN THE COMPANY SPENT 32 MILLION ADIDAS SEES AN OPPORTUNITY TO GET ITS FOOT IN THE DOOR TO REACH THE LUCRATIVE BUT FICKLE MARKET OF 12TO17YEAROLDS THERE IS A WHOLE NEW GENERATION OF KIDS COMING UP WHO SEE THEIR DADS AND GRANDFATHERS WEARING NIKE AND REEBOKS SAYS TOM CORDNER TEAM ONE'S COCHAIRMAN AND CREATIVE DIRECTOR THESE YOUNG PEOPLE WANT THEIR OWN IDENTITY ADIDAS MAY NOT HAVE MUCH CHOICE IN TRYING TO TAP THEM MIDDLEAGED CONSUMERS WHO SIGH NOSTALGICALLY WHEN REMINISCING ABOUT THEIR FIRST PAIR OF ADIDAS SNEAKERS AREN'T RACING TO PURCHASE THE BRAND'S SHOES AND APPAREL THESE DAYS ADIDAS IS DOING WELL WITH BASKETBALL SHOES SAYS JOHN HORAN EDITOR OF SPORTING GOODS INTELLIGENCE AND ITS SALES ARE GROWING THANKS TO THE GRAFFITI' MARKETING IN THE INNER CITY THE ADIDAS BRAND IS STILL A GREAT NAME WITH A LOT OF VALUE TO IT THERE WILL BE A MARKETING PUSH FOR THE BRAND DURING THE WORLD CUP SOCCER TOURNAMENT IN THE US THIS SUMMER ADIDAS IS A MAJOR SPONSOR AND SAYS MR HORAN STILL DOMINATES SALES OF SOCCER FOOTWEAR WE'RE ADVERTISING SHOES FOR THE PURE ATHLETE SAYS MR CORDNER NOT SOMEONE WHO IS JUST POSING AS FOR MR LOUISDREYFUS HE CHARACTERISTICALLY CREDITS TIMING RATHER THAN ANY BUSINESS SKILLS FOR THE START OF THE COMPANY'S TURNAROUND I'M ENJOYING MYSELF VERY MUCH HE SAYS IT'S NICE TO HAVE PRODUCTS SELLING AGAIN AS FOR MY INFLUENCE IT'S BETTER TO BE LUCKY THAN GOOD COCACOLA CO IS LAUNCHING TWO NEW NONCOLA AD CAMPAIGNS FOR SPRITE AND FRESCA FROM INTERPUBLIC GROUP'S LOWE & PARTNERS/SMS FOR SPRITE COKE HAS DROPPED ITS BOUNCY I LIKE THE SPRITE IN YOU JINGLE REPLACING IT WITH RAP AND ROCK MUSIC AND A COMMAND TO OBEY YOUR THIRST THE NEW EFFORT FOCUSED ON TEENAGE BOYS IS PART OF AN EFFORT TO ATTRACT CUSTOMERS WHO ALSO DRINK RIVAL SODAS DR PEPPER AND MOUNTAIN DEW THE COMPANY SAID SPRITE IS THE NO 7 SOFT DRINK ACCORDING TO BEVERAGE MARKETING CORP BEHIND NO 6 MOUNTAIN DEW AND NO 5 DR PEPPER ONE SPRITE AD FEATURES A RAPPER WHO COMPLAINS ABOUT THE INFINITE NUMBER OF PRODUCT SHOTS DRINK SHOTS MEGASUPERSTARS JINGLES IN OTHER SODA ADS THE OTHER SPOT FEATURES A PAIR OF CAMELS NO RELATION TO CIGARETTE SPOKESMAN JOE CAMEL COKE SAYS WHO SLURP SOME SPRITE AFTER A ROUGH DAY IN THE DESERT MEANWHILE THE FIRST NATIONAL ADVERTISING SINCE THE 1970S FOR COKE'S FRESCA CITRUS SODA WILL BREAK DURING THE ACADEMY AWARDS BROADCAST MONDAY NIGHT COKE IS TARGETING SOPHISTICATED ADULTS WITH THE NEW ADS SAYS PIERRE FERRARI COKE SENIOR VICE PRESIDENT OF MARKETING THE NEW SPOT FEATURES COLORED STRAWS BOUNCING AND LAUGHING IN TALL GLASSES OF FRESCA COKE HAD PLANNED TO RUN A COMMERCIAL FEATURING A GLASS OF FRESCA ON A GRAND PIANO BUT CHANGED ITS MIND WHEN RESEARCH SHOWED THE COMMERCIAL APPEALED TO A SLIGHTLY OLDER CROWD BOTH ADS PITCH FRESCA AS THE TASTEFUL ALTERNATIVE THE TV AD IS ONLY PART OF FRESCA'S OSCAR BLITZ ON MONDAY COKE WILL STOCK FRESCA IN 25 LOS ANGELES HAIR SALONS WHERE CELEBRITIES ARE EXPECTED TO BE COIFFED FOR THE BIG NIGHT ABOUT 250 LIMOUSINES HEADING TO THE AWARDS WILL BE FILLED WITH FRESCA COKE ALSO PLANS TO PASS OUT THE DRINK TO WAITING FANS AT THE DOROTHY CHANDLER PAVILION SITE OF THE AWARDS AND TO STOCK THE BACKSTAGE AREA FOR THIRSTY NOMINEES AND OTHER PARTICIPANTS 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 9403170112 940317 COMPUTERS THE GENDER DIVIDE HIGHTECH MARKETERS TRY TO ATTRACT WOMEN WITHOUT CAUSING OFFENSE BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL IN AN EFFORT TO BROADEN THE APPEAL OF PERSONAL COMPUTERS TANDY CORP IN 1990 INTRODUCED WHAT WAS THEN A RADICAL PLAN MARKETING ITS MACHINES TO WOMEN ITS NEW COMPUTERS ADVERTISED AS THE SIMPLEST EVER CAME WITH SOFTWARE FOR MAKING CHRISTMAS LISTS RECIPE PROGRAMS AND A FEATURE THAT COULD BE USED TO TAKE INVENTORY OF SILVERWARE AND CHINA BUT MANY WOMEN WERE OFFENDED BY THE DITZY HOMEMAKER STEREOTYPE AND THE CAMPAIGN FIZZLED TECHNOLOGY COMPANIES HAVEN'T GIVEN UP HOPE OF ATTRACTING MORE WOMEN CUSTOMERS IF ANYTHING THE DESIRE IS EVEN STRONGER TODAY WITH THE HOME PC MARKET BOOMING AND WOMEN CONTROLLING MORE HOUSEHOLD BUDGETS HIGHTECH COMPANIES REALIZE THEY HAVE TO LOOK BEYOND THEIR HARDCORE MALE BASE WOMEN HAVE OBVIOUSLY POPPED UP ON THE RADAR SCREEN SAYS MAL RANSOM VICE PRESIDENT OF PACKARDBELL ELECTRONICS INC A WESTLAKE VILLAGE CALIF PC MAKER THE CATCH AS PACKARDBELL AND OTHERS HAVE FOUND IS DEVELOPING CAMPAIGNS THAT DON'T ALIENATE MORE CUSTOMERS THAN THEY ATTRACT THOUGH MOST OF THE EFFORTS ARE STILL IN THE PLANNING STAGES EVEN THE PROSPECT OF A COMPUTER CAMPAIGN TAILORED FOR WOMEN MAKES SOME WOMEN ANGRY MY NATURAL CYNICISM IS WHY ARE THEY TRYING TO CON ME SAYS CATRINA MCAULIFFE A SENIOR VICE PRESIDENT AT AN ADVERTISING AGENCY IN SAN FRANCISCO WHY SHOULD I BUY ANYTHING THAT MEN WON'T FOR MANY YEARS COMPUTER MARKETING HAS REFLECTED THE FACT THAT MEN ARE THE PREDOMINANT USERS OF PERSONAL COMPUTERS EXPERTS GUESS THAT 85 OF THE MOST EXPERIENCED PC USERS ARE MALE AND MICROGRAFX INC A RICHARDSON TEXAS SOFTWARE COMPANY ESTIMATES THAT MEN BUY 70 OF THE COMPUTER SOFTWARE PURCHASED MOREOVER THE NEXT GENERATION OF WOMEN IS EVEN MORE COMPUTER LITERATE MANY WOMEN NOW IN THEIR 40S WEREN'T RAISED WITH COMPUTERS NOTES CHERYL CURRID A HOUSTON TECHNOLOGY CONSULTANT BUT THEIR DAUGHTERS ARE ALREADY COMFORTABLE WITH THE MACHINES WHEN IT CAME TIME FOR GIFT LISTS LAST CHRISTMAS FOR INSTANCE MS CURRID SAYS HER 11YEAROLD DAUGHTER SENT HER WISH LIST VIA EMAIL SO FAR COMPAQ COMPUTER CORP HAS LED THE LATEST MARKETING PUSH THE HOUSTON PC GIANT HAS TAKEN A DIRECT APPROACH WITH TV COMMERCIALS AIMED SQUARELY AT WORKATHOME MOMS ONE SPOT SHOWS A WOMAN PUTTING HER CHILD TO BED THEN HEADING TO HER COMPAQ PC FOR SOME LATENIGHT WORK DIGITAL EQUIPMENT CORP HAS BEEN MORE SUBTLE REPLACING ITS SPORTSORIENTED PRINT ADVERTISING WITH MESSAGES DEEMED MORE GENDER NEUTRAL PREDICTABLY EVEN THE MOST TIMID EARLY MOVES HAVE ATTRACTED GRUMBLING SOME WOMEN SAY THEY'RE OFFENDED THAT COMPUTER ADS IN FASHION AND HOMEANDGARDEN MAGAZINES FOCUS ON HOW EASY THE SYSTEMS ARE TO USE OTHERS SAY THE FOCUS ON CHILDREN'S SOFTWARE CONSIDERED BY MARKETERS TO BE A SUREFIRE WAY TO WOMEN'S POCKETBOOKS IGNORES THE ARMY OF FEMALE MANAGERS WHO LONG AGO MASTERED THE MOST COMPLEX SPREADSHEETS AND ENGINEERING SOFTWARE I WOULDN'T KNOW HOW TO PUT A RECIPE IN A COMPUTER BUT I CAN SURE BALANCE MY FINANCES MS CURRID SAYS WOMEN PC USERS AS WELL AS CORPORATE MARKETING EXPERTS SAY THERE ARE WAYS TECHNOLOGY COMPANIES CAN TARGET WOMEN WITHOUT OFFENDING CAROL THOMPSON UNTIL RECENTLY THE OWNER OF A COMPUTERLAND FRANCHISE IN AUSTIN TEXAS NOTES THAT TRAINING CLASSES AND SERVICE PROGRAMS WERE POPULAR AMONG WOMEN CUSTOMERS AS WERE FEMALE SALESPEOPLE TANDY THE ELECTRONICS RETAILER BASED IN FORT WORTH TEXAS PLANS TO START AN ELECTRONICSREPAIR PROGRAM AND GIFTDELIVERY SERVICE TO BOOST THE IMAGE OF ITS FLAGSHIP RADIO SHACK CHAIN THE HOPE IS THAT WOMEN WHO ARE STILL RESPONSIBLE FOR MOST HOUSEHOLD GIFTGIVING WILL FIND THE SERVICE A TIMESAVER AT DIGITAL WHICH IS CONSIDERING A PC LINE FOR THE HOME MARKET ENGINEERS ARE STUDYING SUCH DETAILS AS THE WEIGHT OF THEIR MACHINES AND HOW DIFFICULT IT WILL BE FOR WOMEN TO PULL THEM OUT OF THE BOX MEANWHILE SUCH COMPUTER PUBLISHING GIANTS AS ZIFFDAVIS PUBLISHING CO AND CMP PUBLICATIONS INC ARE TARGETING WOMEN IN NEW FAMILYORIENTED PUBLICATIONS CALLED FAMILY PC AND HOME PC SET TO MAKE THEIR DEBUT LATER THIS YEAR THE MAGAZINES WILL INCLUDE REVIEWS OF EDUCATIONAL AND ENTERTAINMENT SOFTWARE AS WELL AS ARTICLES ON WAYS PEOPLE CAN USE THEIR COMPUTERS PACKARDBELL HAS RESISTED PITCHING TO WOMEN A MULTIMEDIA SOFTWARE PACKAGE CALLED NAVIGATOR THAT USES ROOMS OF A HOUSE AS ICONS TO HELP GUIDE USERS THROUGH THE MACHINE SAYS MR RANSOM A 486SX 25 WILL DO THE SAME FOR YOU WHETHER YOU'RE A MAN WOMAN OR CHILD THAT SAID MR RANSOM NOTES THAT PACKARDBELL WILL BEGIN ADVERTISING ITS WARES IN WORKING WOMAN MAGAZINE LATER THIS YEAR HE SAYS THE COMPANY'S PITCH WILL BE ESSENTIALLY THE SAME AS IN ITS OTHER ADVERTISING WHICH FOCUSES ON THE USERFRIENDLINESS OF THE COMPANY'S MACHINES AND PACKARDBELL'S WIDE DISTRIBUTION NETWORK MICHAEL W BALDWIN WHO RUNS THE COMPAQ ACCOUNT FOR AD AGENCY AMMIRATI & PURIS IN NEW YORK ARGUES THAT THE ISSUE FOR MARKETERS IS EXPERIENCE RATHER THAN GENDER THE INDUSTRY'S CHALLENGE HE SAYS IS TO ATTRACT THE UNINITIATED THAT FOCUS WILL FORCE COMPUTER COMPANIES TO BROADEN THEIR APPEAL WHICH WILL BY DEFAULT ENGAGE WOMEN WHO AREN'T AS FAMILIAR WITH THE MACHINES IT'S LIKE AN OUTSIDER COMES INTO A MEETING THAT IS VERY INBRED AND ASKS A SIMPLE QUESTION AND EVERYBODY STOPS IN THEIR TRACKS SAYS MR BALDWIN TRYING TO APPEAL TO NEW CUSTOMERS IS GOING TO MAKE SURE THAT THE MANUFACTURERS DON'T GET AWAY WITH USING SHORTHAND PERHAPS THE MESSAGE FOR MARKETERS ATTEMPTING TO REACH WOMEN THEN IS NOT TO TRY SO HARD MY VIEW SAYS MS MCAULIFFE THE ADVERTISING EXECUTIVE IS THAT IT'S BEST JUST TO TREAT THEM AS INTELLIGENT HUMAN BEINGS 9403170111 940317 HEARD ON THE STREET EITHER BUFFETT GOOFED BY INVESTING IN GUINNESS THERE IS PLENTY OF UPSIDE FOR SOMEONE ELSE BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LEND AN EAR BUFFETT WATCHERS SHARES OF GUINNESS PLC THE BRITISH DISTILLER ARE SELLING AT A PRICE 15 BELOW WHAT INVESTOR WARREN BUFFETT PAID TWO YEARS AGO IS THIS REALLY SUCH A BIG OPPORTUNITY OR DID MR BUFFETT MAKE A GOOF IN HIS FIRST MAJOR INVESTMENT OUTSIDE THE US SOME SMART FOLKS ARE CONVINCED THAT GUINNESS'S FUTURE IS STILL AS BRIGHT AS THE ONE MR BUFFETT PAINTED FOR SHAREHOLDERS OF HIS BERKSHIRE HATHAWAY TWO YEARS AGO WHEN HE LIKENED GUINNESS'S PROSPECTS TO THOSE OF COCACOLA BECAUSE OF BOTH COMPANIES' INTERNATIONAL FRANCHISES IF FACT SOME BELIEVE THE BRITISH CONCERN WHICH IS EXPECTED TO REPORT FOURTHQUARTER EARNINGS TODAY IS ON THE VERGE OF TURNING THE CORNER THE WORST IS BEHIND THE COMPANY SAYS STEVEN DIXON AN ANALYST WITH ARNHOLD & S BLEICHROEDER IF HE REGRETS HIS 1991 INVESTMENT MR BUFFETT DIDN'T ADMIT AS MUCH IN HIS ANNUAL REPORT TO SHAREHOLDERS FOR 1993 WHEN THIS CENTURY'S SMARTEST INVESTOR MAKES AN INVESTMENT IT BEHOOVES YOU TO TAKE A LOOK SAYS JOHN SPEARS A GENERAL PARTNER AT TWEEDY BROWNE ESPECIALLY IF YOU'RE LOOKING AT A PRICE DISCOUNT TO WHAT MR BUFFETT PAID TWEEDY BROWNE HAS INVESTED ABOUT 284 MILLION IN GUINNESS IN THE PAST YEAR INCLUDING IN THE PAST TWO MONTHS MR SPEARS SAYS HE CAN'T GET OVER THE FACT THAT THE COMPANY EARNED 999 MILLION 149 BILLION IN 1992 ON CAPITAL OF 28 BILLION EXCLUDING GOODWILL THAT'S A RETURN OF AROUND 35 HE SAYS THE STOCK'S HOME MARKET IS IN LONDON BUT THERE ARE ALSO AMERICAN DEPOSITARY RECEIPTS QUOTED IN THE SOCALLED PINK SHEETS A NONNASDAQ OVERTHECOUNTER MARKET ADDS JAMES ENGLE CHIEF INVESTMENT OFFICER OF WOOD STRUTHERS & WINTHROP WE'VE BEEN BUYING IT CONTINUOUSLY YOU'RE GOING TO START TO SEE ECONOMIC GROWTH AGAIN IN EUROPE AND GREATER PENETRATION IN INDIA AND CHINA ANALYSTS ARE EXPECTING GUINNESS TO REPORT 1993 EARNINGS OF 875 MILLION A BIG DROP FROM THE 1992 RESULTS NO MATTER INVESTORS ALREADY HAVE THEIR EYES ON WHETHER 1994 WILL BRING BETTER NEWS ANY SIGN THAT THE CLOUDS ARE PARTING WILL BE GREETED WITH GLEE FROM INVESTORS SAYS MR DIXON INVESTORS EXPECT THE COMPANY TO MAKE A CAUTIOUSLY OPTIMISTIC STATEMENT TODAY SAYS MR DIXON WHO HAS A BUY RATING ON GUINNESS GUINNESS ADRS HAVE SUNK IN THE US FOR A VARIETY OF REASONS INCLUDING THE DECLINE OF THE BRITISH POUND AGAINST THE DOLLAR THE PRICECRIMPING POTENTIAL OF LOW INFLATION IN MAJOR MARKETS RECESSION IN EUROPE AND JAPAN AND MANAGEMENT UPHEAVAL IN FACT A LOOK AT WHY MR BUFFETT'S INVESTMENT HASN'T YET PAID OFF PROVIDES A GOOD LESSON IN SOME OF THE RISKS OF INVESTING IN FOREIGN COMPANIES MR BUFFETT WAS ON A ROLL FOR A WHILE WITH HIS GUINNESS INVESTMENT WHICH SOME ANALYSTS SAY HE MADE AT AN AVERAGE PRICE OF AROUND 44 FROM AUGUST THROUGH DECEMBER OF 1991 MR BUFFETT WHO WAS TRAVELING AND COULDN'T BE REACHED FOR COMMENT YESTERDAY ADDED SEVEN MILLION SHARES TO THE HOLDING IN 1992 BRINGING THE TOTAL NUMBER OF SHARES TO ABOUT 38 MILLION GUINNESS ADRS HIT A HIGH OF 56 IN THE SPRING OF 1992 EACH ADR DENOTES FIVE SHARES THEN CAME THE DIVE OF THE BRITISH POUND AGAINST THE DOLLAR AFTER THE EUROPEAN MONETARY SYSTEM BROKE DOWN THAT KNOCKED ABOUT 25 OFF THE MARKET VALUE OF MR BUFFETT'S INVESTMENT NEARLY OVERNIGHT SAYS MR DIXON ADDING INSULT TO INJURY INFLATION IN MANY OF GUINNESS'S MARKETS NEARLY CREPT TO A HALT THAT'S A PROBLEM FOR A COMPANY LIKE GUINNESS WHICH HAS HAD A STRATEGY OF RAISING PRICES AT A PACE FASTER THAN INFLATION FOR ITS GUINNESS STOUT AND PREMIUM SCOTCH WHISKYS WHICH INCLUDE JOHNNIE WALKER BLACK JOHNNIE WALKER RED AND DEWAR'S THE COMPANY DOES MUCH BETTER IN PERIODS OF INFLATION SAYS MR DIXON A RECESSION IN EUROPE AND A SLUMP IN JAPAN CURBED RESULTS IN THOSE MARKETS WHICH IN THE PAST HAD GENERATED NEARLY HALF OF GUINNESS'S SALES THE RECESSION IN THE US DIDN'T HELP EITHER AT GUINNESS WHOSE NORTH AMERICAN SALES ACCOUNTED FOR 17 OF TOTAL REVENUE IN 1992 THE STRING OF DISAPPOINTING NEWS COUPLED WITH MANAGEMENT CHANGES IN THE PAST SIX MONTHS LED TO A LOW FOR THE ADRS OF 29 LATE LAST YEAR MUCH OF THE BAD NEWS MAY BE BEHIND THE COMPANY NOW SAYS MR DIXON INVESTORS ARE HOPING THE COMPANY WILL REPORT AN IMPROVEMENT IN EUROPEAN AND ASIAN SALES GUINNESS ALSO HAS RESTRUCTURED ITS INVESTMENT IN LVMH MOET HENNESSY LOUIS VUITTON IN A WAY THAT WILL CONTRIBUTE MORE TO THE BOTTOM LINE THE NEW RELATIONSHIP WILL ADD SOME OF THE BEST CHAMPAGNES AND COGNACS IN THE WORLD TO ITS LINEUP GUINNESS PLC STOCK HELD BY A TWEEDY BROWNE FUND AMOUNTS TO ABOUT 2 OF A 284 MILLION PORTFOLIO YESTERDAY'S HEARD ON THE STREET COLUMN INCORRECTLY SAID TWEEDY BROWNE HAD INVESTED ABOUT 284 MILLION IN GUINNESS 9403170110 940317 PEPPERAND SALT EACH PLAYING A VITAL TOOL THE DAY AFTER NEXT I JUST GOT OUT OF JAIL 9403170108 940317 WHO'S NEWS MERRYGOROUND ENTERPRISES JOPPA MD AS EXPECTED MERRYGOROUND ENTERPRISES INC NAMED HANK J BELSKY EXECUTIVE VICE PRESIDENT OF THE APPAREL RETAILER RESPONSIBLE FOR THE DEJAIZ AND CHESS KING CLOTHING CHAINS THE OPERATOR OF 1400 SPECIALTY STORES ALSO SAID IT WOULD CONTINUE TO SEARCH FOR A TOP TALENT TO DIRECT MERCHANDISING 9403170107 940317 HOME SHOPPING NETWORK INC ST PETERSBURG FLA HOME SHOPPING NETWORK INC UNVEILED A COMPUTERIZED SHOPPING SEGMENT ON THE MERCHANT A CDROM CATALOG PRODUCED AND DISTRIBUTED BY MAGELLAN SYSTEMS OF CALGARY CANADA HOME SHOPPING SAID PRODUCTS OFFERED ON ITS SEGMENT OF THE MERCHANT WILL BE FROM ITS HSN MAIL ORDER INC UNIT 9403170106 940317 MARKETING & MEDIA MARKETSCAN CAMPBELL'S NEW AD CAMPAIGN IS STIRRING UP DORMANT SOUP SALES BY YUMIKO ONO CAMPBELL SOUP CO'S NEW MOTTO NEVER UNDERESTIMATE THE POWER OF MARKETING DESPITE INITIAL SKEPTICISM BY SOME MARKETING CONSULTANTS THE CAMDEN NJ FOOD COMPANY SAYS ITS MASSIVE NEW MARKETING CAMPAIGN LAUNCHED LAST FALL IS HEATING UP ITS DORMANT SOUP BUSINESS SOME CONSULTANTS WERE CRITICAL WHEN CAMPBELL TRADED IN ITS WELLRECOGNIZED SLOGAN M'M M'M GOOD FOR THE BOLDER RATHER JARRING TAG LINE NEVER UNDERESTIMATE THE POWER OF SOUP BUT AFTER THE COMPANY BOMBARDED TELEVISION VIEWERS WITH THE NEW COMMERCIALS INCLUDING ONE STARRING OLYMPIC MEDALIST NANCY KERRIGAN ITS SALES STARTED TO COOK THE CAMPAIGN IS AN AGGRESSIVE MOVE THAT WAS DESIGNED TO HAVE CONSUMERS RECONSIDER SOUP IN A NEW WAY AND TO THINK ABOUT CAMPBELL IN A NEW WAY SAYS MARTY THRASHER PRESIDENT OF THE COMPANY'S US SOUP DIVISION SO FAR HE SAYS WE'RE MOVING THE NEEDLE EARLY SALES RESULTS LOOK PROMISING SALES OF CAMPBELL'S CORE REDANDWHITE LABEL SOUPS IN SUPERMARKETS GREW FASTER AFTER ITS NEW CAMPAIGN BEGAN ACCORDING TO DATA GATHERED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE DOLLAR SALES ROSE 58 IN THE 13 WEEKS ENDED JAN 2 COMPARED WITH 43 SALES GROWTH IN THE 52WEEK PERIOD ENDED JAN 2 SALES OF ALL CAMPBELL'S SOUP BRANDS INCLUDING CHUNKY HEALTHY REQUEST AND HOME COOKIN' ROSE 45 TO 172 BILLION IN THE 52 WEEKS ON A UNIT SALES BASIS THE DECLINE FOR REDANDWHITE SOUPS HAS SLOWED AND MAY HAVE EVEN TURNED AROUND CAMPBELL EXECUTIVES SAY THAT UNIT SALES RECENTLY STARTED RISING HELP FROM SNOWSTORMS OF COURSE CAMPBELL HAD A LOT GOING FOR ITSELF RECENTLY BESIDES ITS NEW ADVERTISING PITCH THE SOUP COMPANY CAN ONLY BE GRATEFUL FOR THIS WINTER'S MANY SNOWSTORMS WHICH CALLED FOR FREQUENT BOWLS OF STEAMING SOUP AND THE COMPANY GOT A LOT OF MILEAGE OUT OF ITS NANCY KERRIGAN ENDORSEMENT THE SPOTLIGHT ON THE SILVERMEDALWINNING FIGURE SKATER AFTER HER KNEECLUBBING INCIDENT HELPED MAKE THE CAMPBELL AD IN WHICH THE SKATER EATS CHICKEN NOODLE SOUP AND ELBOWS A HOCKEY PLAYER OUT OF HER WAY ONE OF THE MOST MEMORABLE PROMOTIONS DURING THE WINTER OLYMPIC SEASON THE COMPANY SAYS IT MAY FEATURE MS KERRIGAN IN ANOTHER COMMERCIAL BUT SHE WON'T BE THE FOCUS OF THEIR CAMPAIGN TO KEEP THE SOUP MARKET BUBBLING MR THRASHER SAYS CAMPBELL WILL INCREASE ITS AD BUDGET FOR REDANDWHITE SOUPS THIS FISCAL YEAR ENDING JULY 31 BY 30 TO 40 THE CAMPAIGN WILL BE THE COMPANY'S LARGEST EVER HE SAYS AND WILL CONCENTRATE ON ITS CLASSIC REDANDWHITE LABEL MAKING IT THE MOST PROMOTED FOOD PRODUCT IN SUPERMARKETS THE COMPANY DECLINES TO DISCLOSE ITS AD SPENDING BUT INDUSTRY ESTIMATES INDICATE THAT IT SPENT MORE THAN 45 MILLION LAST YEAR FOR ALL ITS SOUP BRANDS SOME ANALYSTS APPLAUD CAMPBELL'S POWER OF SOUP ADS WHICH END WITH THE SLOGAN BURSTING ONTO THE SCREEN WORD BY WORD THE PRODUCT HAS BECOME MORE RELEVANT TO THE AVERAGE 15YEAROLD SAYS JOHN MCMILLIN AN ANALYST FOR PRUDENTIAL SECURITIES INC BUT CAMPBELL'S BIG PITCH MAY ALSO BENEFIT ITS COMPETITORS AT THE COMPANY'S EXPENSE CAUTIONS NOMI GHEZ AN ANALYST FOR GOLDMAN SACHS & CO CAMPBELL'S AGGRESSIVE ADVERTISING HELPED THE TOTAL SOUP CATEGORY GROW BY 56 IN THE 13WEEK PERIOD CAMPBELL'S REDANDWHITE LINE'S MARKET SHARE GREW SLIGHTLY BUT THE COMPANY'S TOTAL SOUP MARKET SHARE FELL 12 PERCENTAGE POINTS TO 77 DURING THE PERIOD WITH MOST OF IT GOING TO PET INC'S PROGRESSO BRAND AND PRIVATELABEL SOUPS COMPETITORS SAY THAT IN A SENSE THEY WELCOME CAMPBELL'S ACTIVITY I DON'T THINK IT HURTS SAYS KAY CARPENTER A SPOKESWOMAN FOR HUNTWESSON INC A DIVISION OF CONAGRA INC THAT MARKETS HEALTHY CHOICE'S 17 SOUPS IT REMINDS PEOPLE THAT SOUP IS A GOOD SELECTION SHE SAYS EVEN IF IT'S NOT CAMPBELL'S SHANE PELLETIER IS ONE CONSUMER WHO PLEASES CAMPBELL'S COMPETITORS THE 20YEAROLD STUDENT FROM CHERRY HILL NJ SAYS HE HAS SEEN THE CAMPBELL ADS SO OFTEN THAT SOUP IS IN YOUR HEAD ALL THE TIME BUT WHEN HE APPROACHED THE SOUP SECTION OF HIS LOCAL PATHMARK SUPERMARKET RECENTLY HE PICKED UP THREE VARIETIES OF PROGRESSO'S CHICKEN SOUP AS WELL AS THREE CANS OF CAMPBELL'S CHICKEN FLAVORS I WANTED TO GET ALL DIFFERENT KINDS HE SAYS CAMPBELL'S NEW CAMPAIGN CREATED BY OMNICOM GROUP'S BBDO AD AGENCY IS AN ATTEMPT TO BOOST SALES OF A BIG BUT SLUGGISH CATEGORY BY SELLING A NEW IMAGE TO A NEW AUDIENCE THE COMPANY IS REPLACING ITS HOMEY ADS WITH LIVELIER MORE ENTERTAINING SPOTS TO TRY TO APPEAL TO 18TO34YEAROLD CONSUMERS WHO DON'T SLURP AS MUCH SOUP AS YOUNG CHILDREN AND PEOPLE OVER 55 IN ONE COMMERCIAL FOR INSTANCE A BOY SEEMINGLY TURNS INTO A MUSCULAR SOUPER HERO AFTER EATING A BOWL OF SOUP FOR CAMPBELL BOOSTING SALES OF ITS CORE SOUP BUSINESS IS CRITICAL BUT SOUP IS ALREADY SUCH AN INSTITUTION IN THE AMERICAN KITCHEN THAT IT'S HARD TO GET PEOPLE TO CONSUME MORE AS MANY AS 70 OF AMERICANS ATE SOUP AT HOME IN THE PAST TWO WEEKS SAYS DAVE JENKINS VICE PRESIDENT AT NATIONAL EATING TRENDS A DIVISION OF NPD GROUP IN CHICAGO CAMPBELL'S REAL CHALLENGE COMES AS THE WEATHER GETS WARMER IN JULY THE VOLUME OF SOUP SOLD IS ONLY HALF THAT OF FEBRUARY'S BUT THE FOOD COMPANY SAYS IT'S PREPARED WITH A HOST OF NEW ADS THAT ARE APPROPRIATE FOR EACH PARTICULAR SEASON SAYS A CAMPBELL SPOKESMAN THERE'S NOBODY OUT THERE WHO'S GOING TO BE MORE AGGRESSIVE THAN WE ARE IN THIS CATEGORY 9403170105 940317 CORPORATE FOCUS CONSOLIDATED FREIGHTWAYS APPEARS TO BE BACK ON TRACK EMERY WHICH ALMOST RAN OUT OF AIR FINALLY BREAKS STRING OF LOSSES BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL PALO ALTO CALIF CONSOLIDATED FREIGHTWAYS INC HAS ALMOST RECOVERED FROM AN ACQUISITION THAT DEVASTATED ITS PAST EARNINGS BUT THE CARRIER STILL FACES TOUGH TRUCKING AHEAD WITH 1993 PROFIT OF 316 MILLION THE TRANSPORTATION COMPANY REGISTERED ITS BEST FINANCIAL PERFORMANCE SINCE IT ACQUIRED EMERY AIR FREIGHT CORP IN 1989 CONSOLIDATED'S EARNINGS IMPROVED LARGELY BECAUSE EMERY HAS FINALLY TURNED PROFITABLE AFTER POSTING 13 STRAIGHT QUARTERLY OPERATING LOSSES TOTALING MORE THAN 300 MILLION THE 1993 PROFITS ARE CLEAR EVIDENCE THAT OUR 1990S STRATEGY IS SUCCEEDING AND THAT THE FINANCIAL TURNAROUND IS PROGRESSING SAID DONALD E MOFFITT PRESIDENT AND CHIEF EXECUTIVE OFFICER WHEN THE RESULTS WERE ANNOUNCED WE ARE EXTREMELY PROUD OF EMERY'S ACCOMPLISHMENT MR MOFFITT LED A ROUND OF MANAGERIAL CHAMPAGNE TOASTS WHEN EMERY LANDED IN THE BLACK BUT HE CONCEDES IT ISN'T TIME FOR REAL REJOICING DESPITE A MODEST RATE INCREASE RECENTLY CONSOLIDATED'S FLAGSHIP BUSINESS OF LONGHAUL TRUCKING REMAINS MIRED IN AN INDUSTRYWIDE PRICING SLUMP WHILE EMERY AND A REGIONALFREIGHT UNIT POSTED REVENUE GAINS LAST YEAR CONSOLIDATED'S REVENUE FROM LONGHAUL TRUCKING FELL TO 211 BILLION FROM 218 BILLION IN 1992 NOW TURNING HIS ATTENTION TO THE LONGHAUL TRUCKING UNIT'S PROBLEMS MR MOFFITT WHO CALLS THE 1993 LONGHAUL RESULTS UNSATISFACTORY AND BELOW OUR EXPECTATIONS SAYS THE COMPANY HAS INSTITUTED COSTCUTTING MEASURES SUCH AS AUTOMATING DOCKS CLOSING SOME TERMINALS AND REDUCING FREIGHT HANDLING BUT THE COMPANY'S STOCK STILL HASN'T RECOVERED WHILE IT HAS ABOUT DOUBLED FROM LAST YEAR'S LOW IT IS STILL TRADING 33 LOWER THAN AT ITS PREEMERY PEAK OF 3775 A SHARE IN JANUARY 1989 YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IT CLOSED AT 26625 OFF 125 CENTS BEFORE THE EMERY ACQUISITION CONSOLIDATED RARELY STUMBLED DURING SIX DECADES OF EXPANSION EMERY APPEARED A GOOD FIT INTO CONSOLIDATED'S PLAN TO EXPAND ITS TRANSPORTATION NETWORK GLOBALLY BUT EMERY WAS SADDLED WITH HIGH COSTS AND FIERCE COMPETITION FROM SUCH GIANTS AS FEDERAL EXPRESS CORP AND SOME FINANCIAL ANALYSTS REACTED WITH ALARM AT CONSOLIDATED'S MOVE WHEN THE DEAL FINALLY CLOSED EMERY WAS CLOSE TO POSSIBLE BANKRUPTCYLAW PROCEEDINGS SAYS PAUL R SCHLESINGER A TRANSPORTATION ANALYST FOR DONALDSON LUFKIN & JENRETTE EXECUTIVES AT THE TIME SAY THEY DIDN'T REALIZE THE FULL EXTENT OF EMERY'S PROBLEMS UNTIL THEY HAD MADE THE PURCHASE FOR ABOUT 480 MILLION IN CASH AND DEBT EMERY WENT ON TO MAKE WHAT EXECUTIVES TODAY SAY WAS A STRING OF BLUNDERS ONE OF THE BIGGEST WAS ITS 45CENTSAPOUND FUEL SURCHARGE SEEKING TO HELP OFFSET RISING AVIATIONFUEL COSTS CUSTOMERS BECAME ENRAGED AT THAT AS WELL AS EMERY'S ERRATIC DELIVERY SCHEDULE AND BOLTED TO COMPETITORS SUCH AS FEDERAL EXPRESS EMERY WOUND UP LOSING ABOUT 100 MILLION IN 1989 EMERY SHARPLY REDUCED THE SURCHARGE AND IMPROVED ITS SCHEDULING SYSTEM BUT LOSSES PILED UP FROM ITS CONTINUED INVOLVEMENT IN THE OVERNIGHTENVELOPE BUSINESS WHICH BRINGS HIGH AIRCRAFTMAINTENANCE COSTS AND LOW PROFIT MARGINS MATTERS WEREN'T HELPED WHEN FEDERAL EXPRESS AND OTHERS CUT THEIR PRICES CONSOLIDATED'S BOARD PULLED THE PLUG ON THE ENVELOPE BUSINESS AND ON THENCHIEF EXECUTIVE OFFICER LARY R SCOTT IN AUGUST 1990 IT NAMED MR MOFFITT WHO HAD BEEN CONSOLIDATED'S CHIEF FINANCIAL OFFICER AS HIS SUCCESSOR INITIALLY THE NEW REGIME DIDN'T PROVE ANY MORE ADEPT THAN MR SCOTT'S THE BOARD HIRED ARTHUR BASS THE LEGENDARY COFOUNDER OF FEDERAL EXPRESS TO RUN EMERY ONLY TO FORCE HIS RESIGNATION SIX MONTHS LATER HE HAD INSISTED ON STAYING IN THE OVERNIGHTENVELOPE BUSINESS UNDER MR MOFFITT THE COMPANY ENRAGED THE WORK FORCE BY FIRING 2000 EMPLOYEES DURING 1991 SOMETIMES WITH AS LITTLE AS 15 MINUTES NOTICE SOME EMPLOYEES SAY AND THE US POSTAL SERVICE SUSPENDED EMERY FROM ANY CONTRACTS WITH THE SERVICE WHILE IT INVESTIGATED THE COMPANY'S ALLEGED OVERCHARGING OF THE GOVERNMENT FOR SHIPPING SERVICES DURING THE GULF WAR EMERY SUBMITTED INVOICES FOR ABOUT 27 MILLION WHICH AUDITORS FOUND INCLUDED 19 MILLION IN OVERCHARGES CONSOLIDATED APPEALED AND THE POSTAL SERVICE GAVE EMERY A NEW 10YEAR CONTRACT STILL MOST ANALYSTS CREDIT MR MOFFITT WITH PULLING CONSOLIDATED BACK FROM THE BRINK AFTER HELPING TO SECURE CRITICAL NEW FINANCING MR MOFFITT MOVED QUICKLY TO CUT COSTS AND BUILD MORALE BY PROMISING EMPLOYEES A SHARE IN PROFITS THE EMPLOYEES RECEIVED THEIR FIRST PROFITSHARING CHECKS IN THE FOURTH QUARTER OF 1992 THAT PERIOD ENDED A YEAR IN WHICH THE PARENT COMPANY POSTED A NET LOSS OF 977 MILLION ITS THIRD YEAR IN A ROW OF NET LOSSES ATTRIBUTABLE IN LARGE PART TO EMERY'S TROUBLES THE KEY TO CONSOLIDATED'S EARNINGS REBOUND IN 1993 ANALYSTS SAY WAS ITS CONTINUED PERSEVERANCE IN TURNING AROUND EMERY THE COMPANY'S MANAGEMENT DID THIS IN PART BY CONTINUING COSTCUTTING EFFORTS SUCH AS SHIFTING EMERY'S EMPHASIS TO HAULING FREIGHT OVER LONGER DISTANCES FROM THE LESSPROFITABLE SHORTER ROUTES SAYS BURTON M STRAUSS JR ANALYST WITH LEHMAN BROTHERS CONSOLIDATED ALSO INCREASED EMERY'S OPERATING EFFICIENCY MR STRAUSS ADDS BY INCREASING THE AMOUNT OF CARGO CARRIED ON EACH FLIGHT WHILE THE OVERALL NUMBER OF SHIPMENTS REMAINED FAIRLY FLAT MR STRAUSS SAYS EMERY BOOSTED ITS POUNDS PER SHIPMENT TO 155 AT THE END OF 1993'S THIRD QUARTER FROM 121 IN THE 1992 FIRST QUARTER OR A WEIGHT INCREASE OF 28 PER SHIPMENT WITH EMERY ESSENTIALLY BACK ON TRACK SOME OF THE PAST TROUBLES CONTINUE TO HAUNT THE PARENT COMPANY AT CONSOLIDATED'S ANNUAL MEETING LAST APRIL THE TEAMSTERS UNION REPRESENTING SOME EMPLOYEES WHO HOLD THE COMPANY'S STOCK MARCHED OUTSIDE TO PROTEST THE DIRECTORS' STAGGERED TERMS WHICH MAKE IT DIFFICULT FOR SHAREHOLDERS TO QUICKLY CHANGE THE MAKEUP OF THE BOARD ON MARCH 31 CONSOLIDATED AND OTHER MAJOR CARRIERS FACE EXPIRATION OF A TEAMSTERS CONTRACT AND INDICATIONS ARE THE UNION WILL DRIVE A TOUGH BARGAIN THAT COULD ADD SIGNIFICANTLY TO CONSOLIDATED'S LABOR COSTS EMERY ALSO FACES FRESH COMPETITION FROM RIVAL TRUCKER ROADWAY SERVICES INC WHICH RECENTLY LAUNCHED ITS OWN AIRFREIGHT SERVICE MEANWHILE TRUCKING RATES ARE EXPECTED TO REMAIN FLAT THIS YEAR BECAUSE OF HEATED COMPETITION STILL ANALYSTS ANTICIPATE THAT AN OVERALL UPTURN IN LONGHAUL SHIPMENTS WILL BE SUFFICIENT TO BOOST CONSOLIDATED'S PROFIT MODERATELY ON THAT BUSINESS AND ANALYSTS EXPECT ANOTHER STRONG YEAR BY EMERY AND CONSOLIDATED'S REGIONAL TRUCKING CARRIER CONWAY TRANSPORTATION SERVICES CONSOLIDATED'S NET INCOME IS EXPECTED TO RISE TO ABOUT 160 A SHARE THIS YEAR OR MORE THAN DOUBLE 1993'S NET WITH AN ESTIMATED 7 REVENUE INCREASE TO ABOUT 45 BILLION SAYS LEHMAN'S MR STRAUSS WE'RE ANTICIPATING A PRETTY GOOD YEAR FOR CONSOLIDATED FREIGHTWAYS HE ADDS 9403170104 940317 US AGENCY ESTIMATES BOOST IN FARM EXPORTS DUE TO GATT PACT WASHINGTON US AGRICULTURAL EXPORTS SHOULD INCREASE BETWEEN 16 BILLION AND 47 BILLION IN THE YEAR 2000 AS A RESULT OF THE RECENTLY CONCLUDED WORLD TRADE PACT THE AGRICULTURE DEPARTMENT ESTIMATED IN A 48PAGE ANALYSIS OF THE PACT CONCLUDED UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE DEPARTMENT ESTIMATED THAT GRAINS AND ANIMAL PRODUCTS WOULD ACCOUNT FOR ABOUT THREEFOURTHS OF THE ANTICIPATED EXPORT INCREASE THE REPORT DIDN'T PROVIDE CURRENT FIGURES FOR EXPORTS BUT THE CHANGES WOULD BE A SMALL PART OF TOTAL AGRICULTURAL TRADE AGRICULTURAL EXPORTRELATED EMPLOYMENT SHOULD INCREASE BETWEEN 41000 AND 112000 JOBS BY 2000 THE REPORT ESTIMATED INCREASED EXPORTS SHOULD ALSO RAISE FARM PRICES THE REPORT SAID THAT IN TURN WOULD REDUCE FARM PROGRAM OUTLAYS BY 695 MILLION TO 13 BILLION BY 2000 9403170103 940317 INTERNATIONAL WORLD WIRE COMPILED BY CATHERINE BOLGAR NORWAY AGREED TO JOIN THE EUROPEAN UNION FOLLOWING A COMPROMISE WITH SPAIN ON FISHING RIGHTS AUSTRIA FINLAND AND SWEDEN REACHED EU MEMBERSHIP AGREEMENTS TWO WEEKS AGO THE 12NATION TRADE BLOC HOPES TO INDUCT THE FOUR COUNTRIES JAN 1 PENDING NATIONAL APPROVALS UNDER THE DEAL WITH NORWAY SPAIN AND PORTUGAL WERE GRANTED EXTRA FISHING QUOTAS IN NORWEGIAN WATERS AND THE EU PROMISED TO TRY TO PURCHASE QUOTAS ELSEWHERE IN THE WORLD INCLUDING RUSSIA AND CANADA THE EU ALSO AGREED THAT RESTRICTIONS ON SPANISH AND PORTUGUESE VESSELS FISHING IN EU WATERS WOULD BE LIFTED IN 1996 SEVEN YEARS AHEAD OF SCHEDULE BUT EU MINISTERS WERE UNABLE TO RESOLVE A DISPUTE ABOUT VOTES NEEDED TO BLOCK LEGISLATION IN THE ENLARGED UNION BRITAIN AND SPAIN WHICH FEAR AN EROSION OF THEIR ABILITY TO DEFEND NATIONAL INTERESTS WANT TO MAINTAIN A VETO BY TWO LARGE COUNTRIES AND ONE SMALL ONE BUT THE OTHER 10 MEMBER STATES WANT THIS CHANGED TO REFLECT VOTES GRANTED TO THE FOUR APPLICANTS FOREIGN MANAGERS IN SOUTH KOREA SAID GOVERNMENT RED TAPE IS THE GREATEST BARRIER TO DOING BUSINESS IN THE COUNTRY OF 349 EXECUTIVES SURVEYED BY THE CHOSUN ILBO NEWSPAPER 47 SAID REGULATIONS POSED THE MOST HARM TO FOREIGN INVESTMENT PREJUDICE AGAINST FOREIGNERS RANKED SECOND AT 20 OTHER RESPONDENTS CITED MARKET INACCESSIBILITY AND LABOR DISPUTES FOREIGN INVESTMENT FELL FROM ITS HEIGHT OF 128 BILLION IN 1988 TO 104 BILLION LAST YEAR THE CZECH GOVERNMENT WILL DISTRIBUTE UP TO 337 MILLION TO ABOUT 20000 CITIZENS WHO WERE INCARCERATED IN NAZI JAILS AND CONCENTRATION CAMPS DURING WORLD WAR II THE MONEY WILL COME FROM EITHER THE STATE'S SMALL PRIVATIZATION PROGRAM OR THE SALE OF PROPERTY OWNED BY THE NOWDEFUNCT CZECHOSLOVAK COMMUNIST PARTY THE NAZIS OCCUPIED BOHEMIA AND MORAVIA FROM MARCH 1939 UNTIL MAY 1945 WHEN CZECHOSLOVAKIA WAS LIBERATED BY ALLIED FORCES THE CZECH AND SLOVAK REPUBLICS SPLIT APART IN JANUARY 1993 RICH COUNTRIES AND DEVELOPING NATIONS BROKE A DEADLOCK ON A VOTING FORMULA FOR A NEW BODY TO PROTECT THE WORLD ENVIRONMENT THE AGREEMENT IN GENEVA BY DELEGATES FROM 87 COUNTRIES CLEARS THE WAY FOR MORE THAN 2 BILLION IN PLEDGES TO SET UP A GLOBAL FUND THE US IS EXPECTED TO BE THE LARGEST DONOR AND THUS HAVE THE MOST CLOUT FOLLOWED BY JAPAN THE ACCORD ORGANIZING THE GLOBAL ENVIRONMENT FACILITY WOULD HELP FINANCE PROJECTS SUGGESTED AT THE 1992 EARTH SUMMIT IN RIO DE JANEIRO MAURITIUS IS SETTING ITSELF UP AS AN INVESTMENT HUB AND TAX HAVEN IN THE INDIAN OCEAN REGION THE ISLAND NATION INCREASINGLY IS ATTRACTING FUNDS THAT INVEST IN INDIA MAURITIUS SEEKS TO BECOME A FINANCIAL CENTER SIMILAR TO DUBLIN WHICH LAST YEAR HAD THE GREATEST GROWTH IN OFFSHORE MUTUALFUND LISTINGS THE 15 OFFSHORE FUNDS NOW BASED IN MAURITIUS INVEST IN INDIA AND ARE MOSTLY EUROPEAN THE COUNTRY EXPECTS TO REGISTER US FUNDS INVESTING IN INDIA AND LATER TO ATTRACT FUNDS INVESTING IN PAKISTAN SRI LANKA SOUTH AFRICA AND OTHER AFRICAN NATIONS CHINA PLANS TO OPEN BY YEAR END THREE BANKS TO FUND NATIONAL DEVELOPMENT PROJECTS A CRUCIAL PART OF VICE PREMIER ZHU RONGJI'S FINANCIAL REFORMS THE IMPORTEXPORT BANK OF CHINA WHICH WILL HELP FINANCE MAJOR TRADE DEALS IS EXPECTED TO OPEN FIRST FOLLOWED BY THE NATIONAL DEVELOPMENT BANK AND A NEW WING OF THE AGRICULTURAL DEVELOPMENT BANK OF CHINA THE BANKS WILL RECEIVE FUNDS FROM THE CENTRAL GOVERNMENT AND ISSUE LONGTERM BONDS THE SPECIALIZED BANKS MAY BECOME COMMERCIAL BANKS OR SHAREHOLDING COMPANIES IN THREE TO FIVE YEARS A SIMPLIFIED LAW AIMED AT STREAMLINING AND ACCELERATING THE PRIVATIZATION OF LATVIAN INDUSTRIAL ENTERPRISES TOOK EFFECT THE MEASURE WHICH REPLACES A 1992 LAW ESTABLISHES A NONPROFIT PRIVATIZATION AGENCY TO CENTRALIZE AND OVERSEE THE RESTRUCTURING AND SALE OF STATEOWNED ENTERPRISES UNDER THE OLD PRIVATIZATION PROGRAM SALES WERE HANDLED BY 170 PARTTIME COMMISSIONS AND THE PROCESS COULD TAKE LONGER THAN A YEAR IN 1993 ONLY 42 INDUSTRIAL ENTERPRISES OR LESS THAN 10 OF THE TARGET WERE SOLD THE GOVERNMENT HAD HOPED TO SELL OFF MORE THAN 400 COMPANIES A YEAR UNDER THE OLD SYSTEM THE GOAL UNDER THE NEW PROGRAM IS ABOUT 200 COMPANIES A YEAR THE PRIVATIZATION AGENCY WHICH IS TO START OPERATING NEXT MONTH WILL EMPLOY ABOUT 100 PEOPLE AND OPERATE UNDER THE ECONOMICS MINISTRY LATVIA STILL HAS ABOUT 1500 STATEOWNED ENTERPRISES MEANWHILE ABOUT 60 OF CITYOWNED STOREFRONT BUSINESSES AND SERVICES WHICH AREN'T PART OF THE PRIVATIZATION PROGRAM HAVE ALREADY BEEN SOLD OFF TRANSPORT WORKERS IN POLAND STAGED WARNING STRIKES IN THE SOUTHERN CITIES OF KATOWICE AND SOSNOWIEC IN THE LATEST PROTESTS BY THE SOLIDARITY TRADE UNION AGAINST GOVERNMENT ECONOMIC POLICY A STRIKE BY JOURNALISTS IN ITALY PROTESTING THE SLOW PACE OF THEIR PENSION PROGRAM'S PRIVATIZATION SHUT DOWN ALL MAJOR ITALIAN DAILY NEWSPAPERS WHICH ARE TO RESUME PUBLICATION TOMORROW 9403170102 940317 LEISURE & ARTS THE MOBILE GUIDE ATTENTION TOURISTS FORGET TRAVELER'S CHECKS THINK ATM BY RAYMOND SOKOLOV MORVAO PORTUGAL IT WAS HERE IN THE HILLS WHERE SPAIN AND PORTUGAL MEET THAT I RESOLVED NEVER TO BUY ANOTHER TRAVELER'S CHECK HAVING DRIVEN THROUGH A TOTALLY UNMANNED BORDER STATION I PULLED OVER AT AN INN THAT DOUBLED AS A CURRENCY EXCHANGE CENTER IT WAS 11 AM BUT I WAS CLEARLY THE FIRST PERSON OF THE DAY TO DISTURB THE ZENLIKE CALM OF THIS REMOTE OUTPOST OF THE INTERNATIONAL BANKING SYSTEM I PROFFERED MY BLUE HUNDREDNOTE AND A FRIENDLY FELLOW BEGAN CALLING HIS PEOPLE IN SOME OTHER PLACE TO DETERMINE THE DAY'S RATE FOR DOLLARS I WAS ANTICIPATING THAT I WOULD BE MODERATELY VICTIMIZED ON THE RATE AS ONE ALMOST ALWAYS IS AT AIRPORTS HOTELS AND RESTAURANTS BUT I THOUGHT I NEEDED SOME ESCUDOS TO GET THROUGH THE MORNING UNTIL I GOT TO A NORMAL BANK STILL I NEVER EXPECTED THAT THE COMMISSION CHARGED BY THE BANCO BORGES & IRMAO OF PORTO WOULD COME TO ALMOST 12 SINCE I HAD ALREADY PAID AMERICAN EXPRESS 1 ON THE SAME ORIGINAL 100 I WAS OUT 13 FOR THE PRIVILEGE OF HAVING 87 IN THE COIN OF THE REALM THERE WAS A BETTER WAY HAD I BUT KNOWN I WOULD HAVE PUT MY HEAD DOWN AND DRIVEN ON UNTIL I SAW AN AUTOMATED TELLER MACHINE RUN BY MULTIBANCO LIKE ATMS IN THOUSANDS OF LOCATIONS AROUND EUROPE AND ASIA NOT TO MENTION NORTH AMERICA MACHINES OPERATED BY LOCAL BANKS ARE LINKED BY THE CIRRUS SYSTEM WITH MY CHECKING ACCOUNT AT THE CHEMICAL BANK IN NEW YORK I DISCOVERED THIS BY NOTICING THE CIRRUS LOGO POSTED ON A MULTIBANCO MACHINE WITH SOME TREPIDATION I INSERTED THE CARD IN THE SLOT ON THE SCREEN I WAS ABLE TO SELECT ENGLISH AS THE LANGUAGE OF THE TRANSACTION MULTIBANCO RECOGNIZED MY PIN AND GAVE ME A WAD OF ESCUDOS THEN IT GAVE ME BACK MY CARD AND I WHISTLED PENNIES FROM HEAVEN ALL THE WAY BACK TO THE CAR WHEN I WAS A BOY IN THE AGE OF STEAM TRAVELER'S CHECKS WERE THE ONLY PRACTICAL WAY OF TAPPING CASH AWAY FROM HOME THEN CREDIT CARDS ELIMINATED MOST OF THE NEED FOR THEM EVEN INTERNATIONALLY I REMEMBER THE THRILL I FELT WHEN MY USISSUED VISA CARD WAS ROUTINELY ACCEPTED IN A BOOKSTORE IN FRANCE IN 1978 THE CARD COMPANIES NOT ONLY OFFERED CONVENIENCE NO MORE SIGNING NAMES ON DOZENS OF BLUE CHECKS OR WAITING IN TELLER'S LINES OR REMEMBERING TO FILE THE SERIAL NUMBERS OF THE CHECKS IN SOME SAFE PLACE BUT THE CARD COMPANIES GAVE YOU A VERY COMPETITIVE RATE OF EXCHANGE THE WHOLESALE RATE APPLIED TO TRANSACTIONS OF 1 MILLION OR MORE THE ONLY REMAINING PROBLEM WAS CASH IT HAS BEEN POSSIBLE FOR SEVERAL YEARS TO GET CASH AT AN ATM IN A FOREIGN COUNTRY WITH VISA OR MASTERCARD BUT THE CASH WAS CONSIDERED A CASH ADVANCE AND TYPICALLY COST THE CONSUMER AS MUCH AS 15 EVEN IF HE PAID HIS NEXT BILL ON TIME AND ANOTHER 15 EACH MONTH IF HE DIDN'T SO TRAVELER'S CHECKS AT A FLAT 1 WERE CHEAPER ALTHOUGH THEIR INFERIOR EXCHANGE RATE DID COMPENSATE FOR THIS ESPECIALLY IF YOU CASHED THEM AT THE BANCO BORGES & IRMAO OR A SIMILAR BUCKET SHOP CIRRUS AND ITS RIVAL PLUS ARE THE WAY OUT OF THIS SWAMP IF YOU CAN LOCATE A LINKED BANK AT YOUR DESTINATION SOMETHING EASIER TO DO EVERY DAY CIRRUS CLAIMS 44 PARTICIPATING COUNTRIES AND WILL GIVE SPECIFIC INFORMATION IF YOU CALL 18004CIRRUS THEN AT ANY HOUR OF THE NIGHT OR DAY YOU SHOULD BE ABLE TO ACQUIRE THE CASH YOU WANT AT DECENT RATES OF EXCHANGE CHEMICAL BANK CHARGES AN ADDITIONAL 3 PER INTERNATIONAL WITHDRAWAL BUT THIS IS TRIVIAL ON LARGER TRANSACTIONS AND THE SAVING ON EXCHANGE RATES MORE THAN MAKES UP FOR IT SOME COUNTRIES HAVE STILL NOT COME ON LINE BUT AT THIS WRITING MOST OF THE MAIN TOURIST COUNTRIES OF WESTERN EUROPE NOW HAVE SOME CIRRUS PARTICIPATION AS DOES JAPAN WHAT IF YOUR BANK CARD IS STOLEN WELL NO ONE ELSE CAN USE IT AND YOU COULD STILL GET CASH WITH VISA OR MASTERCARD OR IF THEY ARE STOLEN THEN POCKET YOUR PRIDE AND GO TO AMERICAN EXPRESS'S NEAREST OFFICE THE GREEN CARD CAN BE REPLACED ON THE SPOT I DID IT ONCE IN BARCELONA CONGRATULATING MYSELF THAT THERE WAS STILL ONE GOOD REASON FOR PAYING THE ANNUAL FEE FOR A CONVENIENCE OF EVERDIMINISHING UTILITY 9403170101 940317 LEISURE & ARTS FILM A BRIDLED PAPER' AN UNBRIDLED REF' BY JULIE SALAMON THE PAPER IS THE NEW AGE VERSION OF THE FRONT PAGE THE GREAT NEWSPAPER PLAY BY BEN HECHT AND CHARLES MACARTHUR BOTH ARE ABOUT THE CYNICISM THE CRAZINESS AND THE EXHILARATION OF DAILY JOURNALISM BUT THE FRONT PAGE WRITTEN IN 1928 WAS DEFIANTLY GLEEFULLY CYNICAL ABOUT REPORTERS AND EDITORS MAYBE EVEN MORE SO IN THE 1940 HOWARD HAWKS MOVIE VERSION HIS GIRL FRIDAY THE PAPER HOWEVER WAS WRITTEN NOW WHEN MOVIEMAKERS QUAKE AT THE THOUGHT OF LEAVING A SINGLE CHARACTER UNREDEEMED THIS EVANGELICAL SPIRIT SHOWS UP IN THE MOST UNLIKELY PLACES EVEN STEVEN SEAGAL FELT COMPELLED TO EMBELLISH HIS LATEST ACTION PICTURE WITH AN ENVIRONMENTAL MESSAGE NO WONDER WHENEVER A LITTLE SHARP HUMOR MAKES ITS WAY INTO THE PAPER THE FILMMAKERS QUICKLY CUSHION THE IMPACT WITH A BIG GOB OF HUMAN INTEREST THE PREGNANT WIFE PRESSURING HER EDITORHUSBAND TO SPEND MORE TIME AT HOME ANOTHER EDITOR TRYING TO BE RECONCILED WITH HIS ESTRANGED DAUGHTER THESE PIOUS INTERLUDES SEEM ESPECIALLY FALSE IN LIGHT OF THE FILM'S INTRINSIC CYNICISM WHEN THE FRONT PAGE WAS MADE INTO A MOVIE IN 1940 THE CRIME REPORTER HILDY JOHNSON WENT FROM MALE TO FEMALE GIVING ROSALIND RUSSELL HER DEFINING COMEDY ROLE AS THE TOUGH JOURNALIST WHO WOULD DO ANYTHING FOR A STORY IN THE PAPER THERE ARE TWO MAJOR FEMALE CHARACTERS ONE OF THEM MARISA TOMEI A WHINY PREGNANT WIFE AND FORMER REPORTER AND THE OTHER GLENN CLOSE THE PAPER'S MANAGING EDITOR WHO TRIES TO GET A RAISE BY OFFERING HERSELF TO THE PAPER'S PUBLISHER A NOBLE MAN WHO HAUGHTILY REJECTS HER BOTH OF THEM END UP IN THE HOSPITAL BOTH GLOWING ONE HAS GIVEN BIRTH THE OTHER HAS BEEN SHOT IN THE LEG AFTER SHE HAS LEARNED HIGHER ETHICS FROM HER MALE COLLEAGUE THE MOVIE'S STORY HAS BEEN CONSTRUCTED LIKE AN EPISODE FROM A STEVEN BOCHCO TELEVISION DRAMA LA LAW OR NYPD BLUE FOLLOWING THE PROFESSIONAL AND PERSONAL LIVES OF A NUMBER OF CHARACTERS ALL CAST AND PLAYED WELL THOUGH IT IS A PITY TO WATCH THE ADORABLE MS TOMEI AS THE PREGNANT WIFE BEING FORCED TO FIGURE OUT HOW TO WHINE WITH DIGNITY LIKE THOSE BOCHCO SHOWS THE PAPER MIXES REALISM OF STYLE AND CONTENT WITH FARCE FISTFIGHTS BETWEEN EDITORS A COLUMNIST FIRING A PISTOL INTO THE CEILING TO GET ATTENTION THERE ARE EVEN CAMEO APPEARANCES BY REALLIFE JOURNALISTS THE KIND OF THING TV SERIES USUALLY RESORT TO IN THE FIFTH SEASON TO PERK UP RATINGS UNLIKE THE TELEVISION DRAMAS HOWEVER THE PAPER HAS TO CRAM ALL THESE STORIES INTO TWO HOURS NOT AN ENTIRE SEASON SO MANY STORIES TO TELL SO MUCH EMOTION TO WORK THROUGH SO MANY MORAL DILEMMAS TO SOLVE AND ALL WITHOUT A COMMERCIAL BREAK THOUGH MANY CANS OF COKE ARE PROMINENTLY DISPLAYED THE PAPER IS MOST ENTERTAINING WHEN IT STAYS CLOSE TO ITS SUBJECT LIFE INSIDE A BIGCITY DAILY NEWSPAPER CALLED THE SUN A SCRAPPY TABLOID LIKE NEW YORK'S DAILY NEWS SCREENWRITERS DAVID AND STEPHEN KOEPP AREN'T EXACTLY GAGWRITERS DAVID KOEPP'S BIGGEST CLAIM TO FAME IS THE SCREENPLAY FOR JURASSIC PARK AND HIS BROTHER STEPHEN IS A SENIOR EDITOR AT TIME BUT THEY ARE STUDIOUS RESEARCHERS THEY'VE CAUGHT SOME OF THE WISECRACKING ONEUPMANSHIP THAT'S PART OF THE TENSION AND THE ABSURDITY OF NEWSROOM LIFE AN EDITOR LOOKS AT A PROPOSED HEADLINE AND OBSERVES WITH PRACTICED WRYNESS GOD FORBID THIS PAPER SHOULD RUN ANYTHING WITHOUT AN EXCLAMATION MARK THEY UNDERSTAND THAT VERY OFTEN A REPORTER AND EDITOR WILL SPEND MUCH MORE TIME DISCUSSING WHETHER A REPORTER'S CHAIR IS CHIROPRACTICALLY CORRECT THAN THEY WILL PLANNING A STORY RON HOWARD DIRECTS THESE SCENES WITH GOOD TIMING AND THE SAME APPRECIATION FOR A PUNCH LINE HE SHOWED IN SPLASH AND PARENTHOOD THERE JUST AREN'T ENOUGH PUNCH LINES AND THERE CERTAINLY ISN'T ENOUGH OF THE RAPIDFIRE DIALOGUE THAT MAKES HIS GIRL FRIDAY SEEM FRESHER AT 54 THAN THE PAPER DOES RIGHT OUT OF THE CAN EARNESTNESS RESTRAINS THE FILM LIKE A GIRDLE YOU CAN'T LAUGH WHEN YOU CAN'T BREATHE YOU CAN HOWEVER BREATHE FREELY AT THE REF A TRULY UNBRIDLED AND TRULY FUNNY MOVIE LIKE THE SCREWBALL COMEDIES OF THE '30S AND '40S THIS PICTURE IS SMALL IN SCALE MOST OF IT TAKES PLACE IN A COMFORTABLE HOUSE IN THE CONNECTICUT SUBURBS WHERE A BICKERING MARRIED COUPLE ARE HELD HOSTAGE BY A THIEF WHO TAKES TO ACTING LIKE THEIR FAMILY THERAPIST IT'S CHRISTMAS OUTSIDE THE LOCAL POLICE BUMBLERS SEARCH FOR THE THIEF AND RELATIVES COME TO DINNER THERE'S NOT MUCH TO THIS CONCOCTION BESIDES THE TALK BUT THE TALK IS GREAT RICHARD LAGRAVENESE WHO WROTE THE SCRIPT WITH MARIE WEISS ALSO WROTE THE SCRIPT FOR THE FISHER KING A WONDERFULLY ARTICULATE MOVIE HERE EVERYONE TALKS WITH BITING HUMOR AND NEVER BOTHERS TO BEG FOR APOLOGIES ONLY AT THE END DOES THE INESCAPABLE REDEMPTIVE HAND OF HOLLYWOOD CLAMP DOWN AND SMEAR A LITTLE NICENESS ALL AROUND OF COURSE GOOD TALK TAKES GOOD TALKERS AND THE PRINCIPLE BICKERERS HERE ARE AS GOOD AS THEY GET JUDY DAVIS AND KEVIN SPACEY THEY BOTH HAVE DEADLY COMIC TIMING WHICH IS GIVEN NICE PLAY BY DIRECTOR TED DEMME THEY KNOW HOW TO USE A PAUSE HOW TO SWING WORDS LIKE HATCHETS AND THEY DON'T STOP SWINGING VIDEO TIP THE REF IS A VARIATION ON THE OLD HOLLYWOOD STANDBY THE COUPLE WHO SPLIT UP AND END UP BACK TOGETHER THE CLASSIC VERSION OF THIS WAS THE AWFUL TRUTH THE 1937 COMEDY WITH IRENE DUNNE AND CARY GRANT AS A DIVORCED COUPLE WHO KEEP EACH OTHER FROM PAIRING UP WITH SOMEBODY ELSE 9403170100 940317 LEISURE & ARTS MUSIC RUSSIAN COMPOSERS FREE AND FAMOUS LOSE THEIR BITE BY MARK SWED NEW YORK ONE HEARS HORROR STORIES ABOUT RUSSIAN ORCHESTRAS THESE DAYS BUT NOTHING QUITE PREPARED ME FOR THE ENCOUNTER WITH ONE ON A RECENT FLIGHT FROM WARSAW TO NEW YORK THE PLAYERS OBEYED PRACTICALLY NONE OF THE RULES THEY SMOKED IN NONSMOKING SECTIONS LIGHTING UP AT TAKEOFF AND LANDING THEY PASSED AROUND BOTTLES OF VODKA THEY HAD BROUGHT WITH THEM POPPED OUT OF THEIR SEATS THE SECOND THE WHEELS HIT THE GROUND AND WERE SURPRISINGLY CASUAL TOWARD THEIR INSTRUMENTS WHEN A VIOLIN CASE TUMBLED OUT OF A PREMATURELY OPENED LUGGAGE BIN ON LANDING THERE WERE GALES OF LAUGHTER THE CREW WAS AT ITS WIT'S END THE ORCHESTRA TURNED OUT TO BE THE ST PETERSBURG PHILHARMONIC UNTIL RECENTLY THE FINEST IN RUSSIA AND THOUGH ITS MANNERS MAY NO LONGER INSPIRE MUCH CONFIDENCE IN ITS MUSICAL DISCIPLINE IT STILL OUGHT TO HAVE BEEN THE PERFECT BAND TO PLAY ALFRED SCHNITTKE'S FIRST SYMPHONY MR SCHNITTKE IS THE RUSSIAN COMPOSER WHO HAS MOST DRAMATICALLY CHRONICLED THE DECLINE AND FALL OF THE SOVIET UNION THAT SYMPHONY WRITTEN IN 1974 IS AN EPIC STUDY IN CHAOS POLITICAL DISILLUSIONMENT AND SHEER STYLISTIC DISSIPATION A COLLAGE OF MUSICS FROM ALL ERAS AND STYLES WITH LARGE HELPINGS OF JAZZ THROWN IN AND SOME OF THE MOST MOMENTOUS CLIMAXES IN SYMPHONIC LITERATURE IT MIRRORS THE APOCALYPTIC VISION THAT ARTISTS HAD OF SOVIET SOCIETY AT THE TIME BUT WERE GENERALLY FORBIDDEN TO EXPRESS THE ST PETERSBURG PHILHARMONIC DID NOT OF COURSE PLAY THE SCHNITTKE ON ITS TOUR IT IS A CAPITALIST ORCHESTRA NOW AND TCHAIKOVSKY SELLS BETTER EVEN THOUGH MR SCHNITTKE HAS GONE ON TO BECOME THE BESTKNOWN RUSSIAN COMPOSER SINCE SHOSTAKOVICH OVER 40 COMPACT DISCS DEVOTED EXCLUSIVELY TO HIS MUSIC HAVE BEEN RELEASED IN THE PAST DECADE AND EVEN WITHOUT ANY HELP FROM THE ARMIES OF RUSSIAN MUSICIANS NOW SCOURING THE WEST IN SEARCH OF HARD CURRENCY MR SCHNITTKE'S MUSIC HAS HAD AN EXTRAORDINARY WINTER IN THE US THE NATIONAL SYMPHONY WHICH COMMISSIONED THE SIXTH SYMPHONY FROM MR SCHNITTKE FOR ITS TOUR TO MOSCOW LAST FALL GAVE THE AMERICAN PREMIERE OF THE WORK UNDER MSTISLAV ROSTROPOVICH IN WASHINGTON AND NEW YORK LAST MONTH A FEW DAYS LATER THE NEW YORK PHILHARMONIC HOSTING MR SCHNITTKE AS ITS COMPOSERINRESIDENCE FOR A WEEK INTRODUCED A SEVENTH SYMPHONY CONDUCTED BY KURT MASUR THAT WAS FOLLOWED BY THE AMERICAN PREMIERE OF MR SCHNITTKE'S WICKED FAUST CANTATA A REAL ORCHESTRAL AND CHORAL BASH FROM 1984 BY THE AMERICAN SYMPHONY ORCHESTRA UNDER LEON BOTSTEIN ELSEWHERE SCHNITTKE'S MUSIC IS CURRENTLY BEING PLAYED BY GROUPS RANGING FROM UNIVERSITY ENSEMBLES TO THE PHILADELPHIA ORCHESTRA AND THE GUARNERI QUARTET THE ORCHESTRA OF THE BEETHOVENHALLE BONN WILL CONCLUDE ITS US TOUR AT LINCOLN CENTER MONDAY NIGHT WITH VLADIMIR FELTSMAN AS SOLOIST IN MR SCHNITTKE'S PIANO CONCERTO INDEED MR SCHNITTKE WHO IS NOW FAR LESS PLAYED IN RUSSIA THAN HE WAS WHEN HE WAS FROWNED UPON BY THE SOVIET GOVERNMENT THRIVES MAINLY THANKS TO WESTERN AND EMIGRE RUSSIAN MUSICIANS THE COMPOSER HAS HIMSELF MOVED TO HAMBURG LEAVING BEHIND RUSSIAN AUDIENCES EAGER TO ESCAPE FROM THE CHAOS ALL AROUND THEM INTO A NEWLY PERVASIVE POP CULTURE UNFORTUNATELY HOWEVER ALL OF THIS HAS TAKEN ITS TOLL ON MR SCHNITTKE HIS HEALTH MAY BE PARTLY RESPONSIBLE HE HAS SUFFERED TWO STROKES AND SERIOUS HEART DISEASE AND LOOKS OLDER THAN HIS 59 YEARS BUT FOR WHATEVER REASONS HIS TWO NEW SYMPHONIES WERE DISPIRITING AFFAIRS ALTHOUGH NOT INAPPROPRIATE RESPONSES TO THE HAPLESS CONDITIONS OF CURRENT RUSSIAN MUSICAL LIFE BOTH ARE EXCEEDINGLY SPARE THE SIXTH CONSISTS OF PHRASES THAT START PROMISINGLY BUT QUICKLY PETER OUT INTO NOTHING IN THE SEVENTH PHRASES ARE SIMILARLY CLIPPED AND SPARSE BUT HERE THE CONTRAPUNTAL LINES ACCUMULATE INTO FUMING CLUSTERS AND STOP AS IF STUCK THIS IS IN BOTH SYMPHONIES MUSIC MADE UP OF A STRING OF FALSE STARTS THE COMPOSER NO LONGER SEEMING TO HAVE ANY PLACE TO GO MR SCHNITTKE WHO SPENT A WEEK IN NEW YORK FOR THE SYMPHONY PREMIERES IS JUST AS RETICENT AS HIS CURRENT MUSIC HE WILL DO ALMOST ANYTHING TO AVOID AN INTERVIEW OR PHOTO SESSION AND HE PREFERS TO FORESTALL ANY QUESTIONS WITH AS FEW UNREVEALING WORDS AS HE CAN GET AWAY WITH HE DESCRIBED THE DIFFERENCE BETWEEN HIS TWO NEW SYMPHONIES ONLY BY NOTING THAT THE SIXTH HAS THREE MOVEMENTS THE SEVENTH FOUR NOT ALL MR SCHNITTKE'S RECENT MUSIC IS QUITE SO DISPIRITING ON AN EXCELLENT NEW SONY CD THERE IS THE FIRST RECORDING OF HIS ROBUST PIANO TRIO BUT THAT HAPPENS TO BE A REWORKING OF AN EARLIER STRING TRIO A NEW STRING QUARTET THE FOURTH ON THE LATEST EMI DISC FROM THE ALBAN BERG QUARTET IS NEARLY AS GRIM AS THE NEW SYMPHONIES MR SCHNITTKE IS HARDLY ALONE IN THIS FLOUNDERING THOUGH THE BEST KNOWN HE IS PART OF A ONCEREMARKABLE GROUP OF FORMER SOVIET COMPOSERS INCLUDING SOFIA GUBAIDULINA THE ESTONIAN ARVO PART AND THE GEORGIAN GIYA KANCHELLI ALL OF THEM RESISTED OFFICIAL SOVIET PRESSURE AND WROTE POWERFULLY DIRECT OFTEN SPIRITUALLY CHARGED PROFOUNDLY INTENSE MUSIC UNLIKE ANY THAT WAS BEING WRITTEN ELSEWHERE IN THE WORLD MESSRS PART AND KANCHELLI MOVED IN THE DIRECTION OF AN ARCHAIC MINIMALISM AND MR PART WHOSE BEST WORKS HAVE AN ELEGANT HEARTFELT GREGORIAN SPIRITUALITY HAS DEVELOPED A CULT NEW AGE FOLLOWING MS GUBAIDULINA HAS A HIGHLY DEVELOPED SENSE OF INSTRUMENTAL COLOR AND STRUCTURAL INGENUITY BUT ALL OF THEM HAVE EMIGRATED TO GERMANY AND ARE WRITING IT SEEMS MUSIC THAT IS A PALE REFLECTION OF THE WORKS THEY WROTE UNDER COMMUNISM MS GUBAIDULINA FOR INSTANCE HAD HER FOURTH STRING QUARTET PREMIERED BY THE KRONOS QUARTET AT CARNEGIE HALL LAST MONTH AND IT WILL BE INCLUDED IN ITS SOONTOBERELEASED NEW NONESUCH RECORDING IT IS A SHORT BEAUTIFULLY WRITTEN ATMOSPHERIC PIECE BUT IT BREAKS NO NEW GROUND AND SEEMS OF SLIGHT AMBITION COMPARED TO HER EARLIER WORKS ONE FORMER SOVIET COMPOSER HAS HOWEVER REMAINED IN ST PETERSBURG AND CONTINUES TO WRITE TOUGH RIVETING MUSIC SHE IS STILL PRACTICALLY UNKNOWN HERE AND IS ONLY NOW BECOMING KNOWN AT HOME UNLIKE THE EMIGRE COMPOSERS WHO WERE OFFICIALLY DISCREDITED BUT STILL HAD THEIR WORK PERFORMED IN THE SOVIET UNION GALINA USTVOLSKAYA A FORMER PUPIL OF SHOSTAKOVICH HAS HAD TO WAIT DECADES TO GET MANY OF HER MORE POTENT PIECES PLAYED AT ALL FINALLY SHE CAN BE HEARD ON TWO NEW CDS AND HER WORK TURNS OUT TO BE SOME OF THE ANGRIEST MUSIC OF ALL TIME ONE OF THE CDS ON THE DUTCH ETCETERA LABEL IS HIGHLIGHTED BY A FURIOUS GRAND DUET FOR CELLO AND PIANO FROM 1959 THE OTHER ON THE HAT HUT LABEL OUT OF SWITZERLAND INCLUDES A 1964 DUET FOR VIOLIN AND PIANO THAT ALTERNATES BETWEEN WISPY THREADS OF SOUND AND VIOLENT OUTBURSTS AS WELL AS OTHER STARTLING MUSIC BUT NOTHING QUITE MATCHES THE SHEER OUTLANDISHNESS OF MR SCHNITTKE'S FIRST SYMPHONY AND THERE IS A NEW RECORDING OF THAT TOO IT IS ON BIS PERFORMED BY THE WACKY SWEDISH CONDUCTOR LEIF SEGERSTAM WHO CAN BE INFURIATINGLY GRANDIOSE IN MAHLER OR SIBELIUS BUT WHO HAPPENS TO OFFER AN APPROPRIATELY EXTRAVAGANT TICKET TO THIS HIGHSPIRITED MUSICAL APOCALYPSE SOME DAY PERHAPS WHEN PRESSURES EASE ON THE UNRULY ST PETERSBURG PHILHARMONIC WE WILL BE ABLE TO HEAR WHAT THEY MAKE OF THIS WORK WHICH SO PERFECTLY SUITS THEIR TEMPERAMENT 9403170099 940317 LEISURE & ARTS BIRDKILLERS OF GUAM BY MANUELA HOELTERHOFF ON JUNE 24 1966 MRS EDITH SMITH OF APRA HEIGHTS AWOKE AT 4 AM TO FIND A SNAKE SLITHERING ACROSS HER NECK THIS BREACH OF PRIVACY WAS DRAMATIC ENOUGH TO MAKE THE GUAM DAILY NEWS FEW PEOPLE HAD EVER SEEN A SNAKE MUCH LESS SLEPT WITH ONE EXCEPT FOR A GRUBBY BLIND SNAKE MOST PEOPLE WOULD CONFUSE WITH A WORM THIS SPECK OF AMERICAN TERRITORY IN THE MARIANA ISLANDS SOME 3000 MILES WEST OF HAWAII AND 1500 MILES EAST OF THE PHILIPPINES WAS SAID TO BE SNAKEFREE A FEW YEARS LATER IN THE EARLY 1980S THE YELLOWED NEWS CLIPPING FELL INTO THE HANDS OF A FRUSTRATED ECOLOGIST COMBING THE ARCHIVES IN GUAM'S RAMSHACKLE MICRONESIAN AREA RESEARCH CENTER READING ON SHE FOUND THAT THE NUMBER OF SNAKE SIGHTINGS HAD INCREASED STEADILY OVER THE YEARS AND IN PLACES FURTHER AND FURTHER AWAY FROM THE HARBOR AREA WHERE EDITH HAD SCREECHED INTO THE NIGHT THEY WERE MULTIPLYING AND MOVING ON THE YOUNG ECOLOGIST JULIE SAVIDGE HAD NOT COME TO GUAM TO STUDY SNAKES THE GUAM DIVISION OF AQUATIC AND WILDLIFE RESOURCES HAD HIRED HER TO STUDY THE LOCAL BIRD POPULATION EVERY DAY WHEN THE SUN ROSE OVER THE STEAMING FOREST AND GUAM SLOWLY STIRRED TO LIFE YOU COULD HEAR DOGS BARKING ROOSTERS CROWING AND SOME CARS PUTTERING ALONG THE FEW MILES OF PAVED ROAD WHAT YOU COULDN'T HEAR WERE ANY BIRDS NOT A PEEP TO THE UTTER MYSTIFICATION OF BIOLOGISTS VIRTUALLY THE ENTIRE INDIGENOUS AVIAN POPULATION OF GUAM INCLUDING GROUNDHUGGING RAILS TINY GREENTINTED WHITEEYES AND MICRONESIAN KINGFISHERS HAD BEEN WIPED OUT WHAT PARASITE OR PREDATOR COULD DO SUCH A THOROUGH JOB ON LOCAL BIRDS THAT A CAT COULD GO HUNGRY ON GUAM WHAT ABOUT THOSE SNAKES YOU ARE SAYING BUT AS MARK JAFFE RELATES IN HIS WEIRDLY ABSORBING AND NO BIRDS SING THE STORY OF AN ECOLOGICAL DISASTER IN A TROPICAL PARADISE SIMON & SCHUSTER 283 PAGES 23 THIS WAS NOT AN OBVIOUS CONNECTION NO SERPENT HAD EVER BEEN IMPLICATED IN BIRD MURDER ON SUCH EPIC SCALE ESPECIALLY NOT BOIGA IRREGULARIS A NOCTURNAL SLOWMOVING MILDLY VENOMOUS BROWN TREE SNAKE CONTENT ON THE WHOLE WITH A MEAL A MONTH JUST A GRADUATE STUDENT WRITING HER DISSERTATION MS SAVIDGE HAD TO PREVAIL OVER SENIOR THINKERS WHO THOUGHT THE KILLERS HAD TO BE A VIRUS OR SOME KIND OF CHEMICAL POISONING OR PERHAPS THE HULKING MONITOR LIZARD ONE OF WHOM FOUGHT THE SHOEWIELDING ECOLOGIST FOR A PEANUT BUTTER SANDWICH NAILING B IRREGULARIS TOOK SEVERAL YEARS OF SWEATY WORK THE SNAKE'S COLOR MADE IT HARD TO SEE EVEN CLOSEUP AND ITS PREFERENCE FOR NIGHT MADE IT HARD TO FOLLOW AS IT SLITHERED HIGH UP IN THE JUNGLE CANOPIES STALKING SLEEPING BIRDS AND EATING EGGS MR JAFFE'S DESCRIPTION OF HOW FOUR SNAKES WERE SENT FORTH TO UNTIMELY DEATHS UNCOMFORTABLY FITTED WITH A RADIO TRANSMITTER AND ANTENNA IS ONE OF THE HIGHLIGHTS OF THE BOOK BY THEN THE SNAKES WERE EVERYWHERE THEY BROUGHT ON COSTLY OUTAGES DANGLING FROM POWER LINES TRYING TO GET AT SPARROW NESTS ATE PUPPIES FRUIT FLIES AND MADE ENERGETIC IF UNSUCCESSFUL ATTEMPTS AT SWALLOWING HUMAN BABIES WHOLE ONE STUNNED BIOLOGIST ESTIMATED THERE COULD BE AROUND 30000 SNAKES UP TO 10 FEET LONG PER SQUARE MILE THEIR SURPRISE APPEARANCES MAKE INTERESTING READING ONE SERPENT EMERGING FROM A TOILET DRAIN PIPE BIT A WOMAN IN THE BUTT ANOTHER LUNGED AT A DRIVER THROUGH THE AIR CONDITIONING VENTS OF HER CAR A SALESCLERK NOTICED WHAT WAS NOT A TIE HANGING FROM A CLOTHES RACK IN A FASHIONABLE BOUTIQUE IN THE TUMON BAY HOTEL DISTRICT THE BROWN SNAKE HAD WORMED ITS WAY INTO THE SOCIAL AND ECONOMIC LIFE OF THE ISLAND COMMENTS MR JAFFE IN A CALM TONE THAT SUGGESTS HE HADN'T BEEN THERE SHOPPING FOR SHORTS BUT HOW DID THE SNAKES GET TO GUAM AND WHERE MIGHT THEY BE GOING NEXT A FONDNESS FOR TRAVEL IS JUST ONE OF THE TRAITS DESCRIBED BY MR JAFFE AN ENVIRONMENTAL REPORTER FOR THE PHILADELPHIA INQUIRER WHO BEGAN REPORTING ON GUAM'S BIRDKILLERS SOME 10 YEARS AGO THE BEAST PROBABLY HITCHED A RIDE ABOARD A MILITARY TRANSPORT FLYING IN FROM THE NAVAL BASE ON MANUS IN THE MICRONESIAN ARCHIPELAGO PERHAPS THEY WERE ESCAPING POOR CONDITIONS ON MANUS THE ENVIRONMENT IS HARDER FOR SNAKES MEANING SKIMPIER MEALS AND THINNER AND FEWER SNAKES WITH NO PREDATORS ON GUAM THE SNAKES FLOURISHED IN WAYS THAT WOULD THRILL STEPHEN KING IT CAN ADJUST THE SHAPE OF ITS HEAD TO ACCOMMODATE A REALLY MAJOR MORSEL AND IT SEEMS TO HAVE A STARTLING CAPACITY TO HONE IN ON THE NEWLY BORN LITTLE NIPPERS RAT PUPS BABY BIRDS CHICKS NOW HOW DOES IT DO THAT BY LOOKING SNIFFING THINKING AN ANIMAL BEHAVIORIST FINALLY ARRIVED AT THE ANSWER WITH SOME UNTIDY EXPERIMENTS I WON'T DETAIL INVOLVING FRESH PLACENTAS AND BLOOD AS MUCH A CAUTIONARY TALE AS AN ECOTHRILLER MR JAFFE'S ACCOUNT LEAVES US WITH A VIVID PICTURE OF HOW EASILY AND QUICKLY NATURE CAN GO OUT OF WHACK AND QUITE BEYOND REPAIR ALREADY A FEW BROWN TREE SNAKES HAVE MADE IT TO HAWAII RIDING IN WHEEL WELLS AND CARGOS IT IS WORTH WORRYING ABOUT BACK IN GUAM THEY'RE TRYING ELECTRIC FENCES WHICH FRY THE SNAKES ON IMPACT SAY WHAT DO THEY TASTE LIKE 9403170097 940317 MERRILL LYNCH SAYS DERIVATIVES REVENUE SWELLED 57 TO 761 MILLION LAST YEAR BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET BROKERAGE FIRMS ARE FINALLY SHEDDING SOME LIGHT ON THE SHADOWY AND LUCRATIVE WORLD OF DERIVATIVES THE DISCLOSURE MADE IN MERRILL'S RECENTLY ISSUED ANNUAL REPORT UNDERSCORES HOW QUICKLY DERIVATIVES ARE GROWING AND HOW PROFITABLE THEY CAN BE FOR WALL STREET INVESTMENT BANKS THIS IS THE FIRST YEAR THAT MERRILL AND OTHER FINANCIAL FIRMS HAVE PROVIDED SUCH INFORMATION TO SHAREHOLDERS DERIVATIVES ARE FINANCIAL ARRANGEMENTS BETWEEN DEALERS AND INSTITUTIONAL INVESTORS WHOSE VALUES ARE LINKED TO OR DERIVED FROM FLUCTUATIONS IN THE PRICES OF STOCKS BONDS CURRENCIES OR OTHER ASSETS THESE INCLUDE FUTURES FORWARD CONTRACTS OPTIONS AND SWAPS ON INTEREST RATES CURRENCIES AND STOCKS DATA ON THESE PRODUCTS TYPICALLY HASN'T BEEN INCLUDED IN THE FIRMS' BALANCE SHEETS MERRILL'S REPORT COMES AMID PRESSURE FROM REGULATORS FOR MORE DISCLOSURE BY BANKS AND OTHER FINANCIAL FIRMS ON THEIR PROFITS FROM DERIVATIVES FEDERAL BANKING REGULATORS FOR INSTANCE PLAN TO FORCE BANKS TO DISCLOSE MORE DATA ABOUT THEIR DEALINGS IN DERIVATIVES AS PART OF AN EFFORT TO MORE CLOSELY MONITOR BANKS' ACTIVITIES IN THE BOOMING 7 TRILLION DERIVATIVES MARKET EARLIER THIS WEEK THE SECURITIES AND EXCHANGE COMMISSION PROPOSED A NEW FORMULA FOR BROKERAGE FIRMS TO CALCULATE THE SIZE OF CHARGES THEY MUST TAKE TO OFFSET THE RISK OF THEIR POSITIONS IN LISTED OPTIONS AND RELATED SECURITIES POSITIONS THE MAJORITY OF MERRILL'S OFFBALANCE SHEET DERIVATIVES TRADES ARE SHORTTERM IN DURATION WITH A WEIGHTED AVERAGE MATURITY OF 262 YEARS AS OF DEC 31 1993 ACCORDING TO THE REPORT THAT'S UP FROM 221 YEARS A YEAR EARLIER MERRILL SAID MERRILL SAID THE NOTIONAL OR UNDERLYING VALUE OF ITS SWAPS AND DERIVATIVES SURGED 28 IN 1993 TO 891 MILLION THE BOOM IN DERIVATIVES HAS BEEN FUELED BY AMONG OTHER THINGS LOW INTEREST RATES THIS HAS TRIGGERED STRONG DEMAND FOR COMPANIES WITH FLOATINGRATE DEBT TO SWAP INTO LOW FIXEDRATE INSTRUMENTS MERRILL SAYS IT TAKES PAINS TO OFFSET THE RISKS ASSOCIATED WITH THESE OFFBALANCE SHEET TRADES THE FIRM SEEKS TO CONTROL MARKET RISK BY DEVELOPING AND REFINING HEDGING STRATEGIES THAT CORRELATE PRICE AND CURRENCY MOVEMENTS OF TRADING INVENTORIES AND RELATED HEDGES THE REPORT SAID MERRILL WAS AMONG THE FIRST WALL STREET INVESTMENT BANKS TO SET UP A SEPARATE UNIT JUST TO TRADE INTERESTRATE SWAPS CURRENCY SWAPS AND OTHER DERIVATIVE PRODUCTS MERRILL RECEIVED A TRIPLEA1 RATING FOR THE UNIT FROM MOODY'S INVESTORS SERVICE INC THAT'S IMPORTANT BECAUSE SWAP DEALERS WITH TRIPLEA RATINGS HAVE AN ADVANTAGE OVER OTHER DEALERS IN TRADING WITH MULTINATIONAL COMPANIES MANY OF WHICH WON'T DEAL WITH WALL STREET FIRMS WITH BELOW A DOUBLEA RATING 9403170096 940317 WHO'S NEWS AUTOZONE INC NAMES HANEMANN TO SUCCEED FORMANEK AS PRESIDENT MEMPHIS TENN AUTOZONE INC SAID ITS PRESIDENT AND COFOUNDER PETER R FORMANEK 50 YEARS OLD WILL RESIGN EFFECTIVE APRIL 30 THE RAPIDLY EXPANDING RETAILER WHICH OPERATES 855 AUTOPARTS STORES IN 24 STATES NAMED THOMAS S HANEMANN 56 CURRENTLY EXECUTIVE VICE PRESIDENTSTORES AS HIS SUCCESSOR THE MOVE SURPRISED INDUSTRY OBSERVERS AND INVESTORS AND NEWS OF MR FORMANEK'S DEPARTURE HELPED PUSH DOWN AUTOZONE'S SHARES ALMOST 2 A SHARE IN EARLY TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE STOCK CLOSED AT 6150 UP 875 CENTS MR FORMANEK WHO HOLDS ABOUT 3 OF THE COMPANY'S STOCK SAID HE IS LEAVING AUTOZONE TO PURSUE PERSONAL INTERESTS HE WILL REMAIN A DIRECTOR THERE'S NO QUESTION AUTOZONE WILL MISS HIM SAID L KEITH MULLINS AN ANALYST AT SMITH BARNEY SHEARSON BUT THERE'S NO INDICATIONS OF ANY DISTURBING TRENDS THE BUSINESS CONTINUES TO BE VERY VERY STRONG UNDER MR FORMANEK AND JR HYDE III CHAIRMAN AND CHIEF EXECUTIVE AUTOZONE HAS EMERGED AS A FASTGROWING RETAILER FOR ITS FISCAL SECOND QUARTER ENDED FEB 12 THE COMPANY REPORTED EARNINGS JUMPED 31 TO 209 MILLION OR 28 CENTS A SHARE FROM 16 MILLION OR 22 CENTS A SHARE A YEAR AGO SALES ROSE 25 TO 3032 MILLION MR HANEMANN HAS BEEN EXECUTIVE VICE PRESIDENTSTORES SINCE 1992 HE WAS NAMED SENIOR VICE PRESIDENTSTORES IN 1986 SEPARATELY AUTOZONE SAID ITS BOARD APPROVED A 2FOR1 STOCK SPLIT PAYABLE APRIL 20 TO SHAREHOLDERS OF RECORD MARCH 31 AUTOZONE CURRENTLY HAS 724 MILLION SHARES OUTSTANDING 9403170095 940317 BUSINESS BRIEF EUROPA CRUISES CORP TWO UNITS TRUMP AFFILIATE TO COBUILD CASINO COMPLEX EUROPA CRUISES CORP IN MADEIRA BEACH FLA SAID TWO SUBSIDIARIES AGREED TO FORM A JOINT VENTURE WITH AN AFFILIATE OF THE NEW YORKBASED TRUMP ORGANIZATION TO BUILD A 100 MILLION CASINO AND HOTEL COMPLEX IN DIAMONDHEAD MISS THE SUBSIDIARIES CASINO WORLD INC AND MISSISSIPPI GAMING CORP WILL BUILD THE COMPLEX IN PARTNERSHIP WITH TRUMP DIAMONDHEAD INC ON A 4045ACRE WATERFRONT SITE IN DIAMONDHEAD THE PROJECT IS CONTINGENT ON RECEIPT OF SITE APPROVALS AND PROJECT FINANCING AS WELL AS RECEIPT OF A GAMING LICENSE FROM THE MISSISSIPPI GAMING COMMISSION 9403170094 940317 NORTHWEST AIR IS SLASHING ITS IPO PRICE BY WARREN GETLER AND CARL QUINTANILLA STAFF REPORTERS OF THE WALL STREET JOURNAL IN A SETBACK TO ONE OF THE LARGER INITIAL PUBLIC OFFERINGS SCHEDULED THIS YEAR NORTHWEST AIRLINES CORP IS SLASHING THE ASKING PRICE OF ITS 20 MILLIONSHARE IPO TO BETWEEN 13 AND 14 A SHARE FROM AN EARLIER RANGE OF BETWEEN 19 AND 21 A SHARE PEOPLE FAMILIAR WITH THE DEAL SAID WALL STREET INDIVIDUALS SAID POTENTIAL INVESTORS' RESPONSE TO THE ORIGINAL RANGE WAS SO POOR THAT UNDERWRITERS WERE FORCED TO SHARPLY LOWER THEIR TARGET THEY CITED A WEAK OVERALL STOCK MARKET AND A SOFTENING IPO MARKET IN THE WAKE OF THE FEDERAL RESERVE BOARD'S FEB 4 DECISION TO RAISE SHORTTERM INTEREST RATES NORTHWEST THE NATION'S FOURTHLARGEST CARRIER IS ATTEMPTING TO RETURN TO THE STOCK MARKET FOR THE FIRST TIME SINCE 1989 WHEN IT WAS TAKEN PRIVATE IN A 36 BILLION LEVERAGED BUYOUT THE MOVE COMES AFTER THE COMPANY LAST YEAR REACHED AN AGREEMENT WITH ITS PILOT UNION RESTRUCTURED ITS DEBT AND POSTED TWO CONSECUTIVE PROFITABLE QUARTERS AFTER YEARS OF STRUGGLING TO REMAIN SOLVENT STILL THE AIRLINE'S SIZABLE DEBT LOAD AND THE SENSITIVITY OF HIGHLY LEVERAGED CARRIERS TO ECONOMIC DOWNTURNS RAISED SERIOUS QUESTIONS AMONG ANALYSTS AND MONEYMANAGERS ABOUT WHETHER THE OFFERING WOULD BE SUCCESSFUL LEHMAN BROTHERS IS THE ISSUE'S LEAD UNDERWRITER WITH BT SECURITES CS FIRST BOSTON SALOMON BROTHERS AND SMITH BARNEY ACTING AS COMANAGERS NORTHWEST DECLINED TO COMMENT CITING SEC REGULATIONS PROHIBITING IT FROM DISCUSSING THE IPO THE ONETHIRD CUT IN THE PRICE RANGE ALSO COMES AMID ESCALATING PRICE WARS IN THE AIRLINE INDUSTRY WEAKENING SHARE PRICES OF COMPARABLE CARRIERS AND A CONTINUING RECESSION IN JAPAN ONE OF NORTHWEST'S MAJOR MARKETS AIRLINE STOCKS ARE DOWN AROUND 15 SINCE NORTHWEST FILED FOR ITS OFFERING WITH THE SECURITIES AND EXCHANGE COMMISSION ON JAN 18 PEOPLE ON WALL STREET SAID THE DEAL WILL BE PRICED SUBJECT TO CLEARANCE BY THE SEC AS EARLY AS TONIGHT OR EARLY NEXT WEEK THE STOCK WILL TRADE ON THE NASDAQ STOCK MARKET EVEN AT THE LOWER PRICE RANGE WE STILL WOULD AVOID THIS IPO SAID ROBERT NATALE NEWISSUES ANALYST FOR STANDARD & POOR'S IN NEW YORK THE LOWERING OF THE PRICE CONFIRMS THAT THERE'S A LOT OF RISK HE SAID ADDING NORTHWEST IS STILL GOING TO BE VERY FINANCIALLY LEVERAGED MR NATALE SAID THE RECENT DECLINE IN THE SHARE PRICES OF PUBLICLY TRADED COMPETITORS SUCH AS CONTINENTAL AIRLINES WOULD HAVE FORCED THE OFFERING PRICE DOWN TO AT LEAST 16 A SHARE IN ANY EVENT ANY PRICE BELOW 16 A SHARE REFLECTS WEAKNESS IN THE OFFERING ITSELF HE SAID OTHER ANALYSTS AND MONEY MANAGERS SAID THAT WHILE THE LOWERING OF THE PRICE TARGET WILL PROBABLY ENSURE THE NORTHWEST OFFERING GETS OFF THE GROUND THE SLASHING OF THE TARGET RANGE CAN ONLY HEIGHTEN CONCERN ABOUT THE QUALITY OF THE ISSUE IT MAKES YOU THINK THEY'VE GOT A TURKEY I DON'T WANT IT SAID GIL KNIGHT MANAGING DIRECTOR OF ASB CAPITAL MANAGEMENT INC IN WASHINGTON DC THE LOWER PRICE SUGGESTS THAT A LOT OF INSTITUTIONAL BACKING IS JUST NOT THERE FOR THE OFFER MR KNIGHT A VETERAN STOCKPICKER IN THE VOLATILE IPO MARKET SAID HE'S BEEN LEERY OF THE DEAL FROM THE OUTSET THE AIRLINE INDUSTRY IS A DOGEATDOG BUSINESS RIGHT NOW THERE'S A LOT OF POTENTIAL LEVERAGE OUT THERE THAT CAN GO AGAINST YOU IF THE GLOBAL ECONOMY TURNS DOWN BUT KATHLEEN SMITH AN ANALYST AT RENAISSANCE CAPITAL CORP AN INSTITUTIONAL IPO RESEARCH FIRM IN GREENWICH CONN SAID THE PRICE CUT SHOULD SPARK INTEREST AMONG INVESTORS I THINK THEY CAN GET THE DEAL DONE SHE SAID THERE WAS INTEREST BEFORE BUT NOT ENOUGH PEOPLE ARE LOOKING FOR A BETTER PRICE TO PLAY AT THE NEW OFFERING PRICE RANGE NORTHWEST WOULD BE RAISING AS MUCH AS 280 MILLION BEFORE UNDERWRITING FEES AS OPPOSED TO A MAXIMUM 420 MILLION AT THE ORIGINAL RANGE THE COMPANY HAS SAID IT PLANS TO USE THE PROCEEDS TO REDUCE DEBT TO UPGRADE ITS AGING FLEET AND FOR GENERAL CORPORATE PURPOSES NORTHWEST WHICH POSTED A LOSS OF 1153 MILLION IN 1993 HAS ABOUT 5 BILLION IN LONGTERM DEBT AND CAPITAL LEASE OBLIGATIONS SOME INDUSTRY OBSERVERS ATTRIBUTE THE HIGH INITIAL ASKING PRICE TO NORTHWEST'S EARNINGS GAINS THE PAST TWO QUARTERS WHICH EXCEEDED WALL STREET'S EXPECTATIONS FOR THE FOURTH QUARTER NORTHWEST POSTED NET INCOME OF 105 MILLION COMPARED WITH A YEAREARLIER LOSS OF 6952 MILLION IN THE TYPICALLY STRONG THIRDQUARTER THE CARRIER POSTED ITS FIRST PROFIT IN TWO YEARS A HEALTHY 1123 MILLION AFTER THOSE TWO QUARTERS THEY PROBABLY GOT TOO AGGRESSIVE AND FELT THEY COULD PRICE THE IPO THAT HIGH SAID RAYMOND E NEIDL AN ANALYST WITH FURMAN SELZ NEW YORK NORTHWEST COCHAIRMEN ALFRED CHECCHI AND GARY WILSON WOULD HAVE MADE A PROFIT OF NEARLY 400 MILLION ON THEIR 40 MILLION INVESTMENT AT AN ASKING PRICE OF 20 A SHARE THEY MAY HAVE LET GREED OVERCOME THIS DEAL SAID ROB SYMINGTON OF MD SASS INVESTORS NEW YORK MR CHECCHI A LOS ANGELES INVESTOR WHO ENGINEERED THE LEVERAGED BUYOUT OF NORTHWEST IN 1989 OWNS 148 OF NORTHWEST STOCK AFTER THE OFFERING THAT AMOUNT WOULD DROP TO 104 COCHAIRMAN WILSON OWNS A LIKE AMOUNT EVEN WITH THE IPO NORTHWEST'S PLANS FOR TWO PRIVATE PLACEMENTS VALUED AT 400 MILLION AND PUBLIC DEBENTURES ANOTHER 400 MILLION THE COMPANY WOULD ONLY RAISE A LITTLE OVER 1 BILLION FOR THE YEAR AS A RESULT ANALYSTS SEEMED TO REGARD THE IPO AS MORE OF A SYMBOLIC ENTRANCE INTO THE PUBLIC MARKET RATHER THAN A SIGNIFICANT INJECTION OF CAPITAL THE IPO WAS SO SMALL SO INSIGNIFICANT SAYS MR NEIDL IT WAS REALLY JUST A TINY DROP IN THE BUCKET HE ADDS IT WASN'T THE FUNDS THAT WERE IMPORTANT BUT THE FACT THAT THEY REESTABLISH THEMSELVES WITH THE PUBLIC EQUITY COMMUNITY ANALYSTS ARE LOOKING FOR NORTHWEST TO CONTINUE TO PERFORM WELL IN THE COMING QUARTERS THEY EXPECT THE CARRIER TO TURN A PROFIT OF 300 MILLION TO 400 MILLION FOR 1994 IF ITS SOLID GROWTH CONTINUES OBSERVERS EXPECT THE AIRLINE TO ANNOUNCE A LARGER MORE SUBSTANTIAL PUBLIC OFFERING SOMETIME IN THE THIRD OR FOURTH QUARTER OF COURSE NOT EVERYONE IS AS OPTIMISTIC OTHERS SAY THAT WITH THE RASH OF PROBLEMS PLAGUING THE INDUSTRY RIGHT NOW NORTHWEST IS TOO VULNERABLE TO CHANGING MARKET CONDITIONS TO MAKE THEIR STOCK A SMART INVESTMENT THE AIRLINE IS NEITHER A POWERHOUSE CARRIER LIKE UAL CORP'S UNITED AIRLINES NOR AN EFFICIENT SHORTHAUL CARRIER LIKE SOUTHWEST AIRLINES LEAVING THEM WITH NO REAL NICHE THE LARGEST SHAREHOLDER IS KLM ROYAL DUTCH AIRLINES WHICH OWNS 21 OF THE STOCK BEFORE THE OFFER AND 148 AFTER THE IPO NORTHWEST FORGED AN ALLIANCE WITH KLM IN 1989 WHICH AMONG OTHER THINGS RESULTED IN A LARGE CASH INFUSION BY KLM SCOTT REEVES CONTRIBUTED TO THIS ARTICLE 9403170093 940317 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BEAR STEARNS COS A SHELF OFFERING FOR 25 BILLION OF DEBT SECURITIES AND WARRANTS VIA BEAR STEARNS & CO DPL INC AN OFFERING OF UP TO 35 MILLION COMMON SHARES PROBABLY VIA CS FIRST BOSTON HECLA MINING CO A PROPOSED OFFERING OF 65 MILLION COMMON SHARES VIA MERRILL LYNCH & CO AND SALOMON BROTHERS INC SIMPSON MANUFACTURING CO AN INITIAL OFFERING OF 2150000 COMMON SHARES AT AN ANTICIPATED 1214 A SHARE WITH AN OVERALLOTMENT OPTION FOR 322500 ADDITIONAL SHARES VIA JP MORGAN SECURITIES INC AND ROBERTSON STEPHENS & CO UNION TEXAS PETROLEUM HOLDINGS INC AN OFFERING OF 200 MILLION OF SENIOR NOTES DUE 2004 VIA GOLDMAN SACHS & CO 9403170092 940317 BUSINESS BRIEF US BANCORP PLANS TO CUT WORK FORCE SETS 100 MILLION FIRSTQUARTER CHARGE PORTLAND ORE US BANCORP BECAME THE LATEST BANK HOLDING COMPANY TO MOUNT A COSTCUTTING CAMPAIGN ANNOUNCING PLANS TO CUT ITS WORK FORCE BY 10 OR ABOUT 1400 EMPLOYEES AND TAKE A 100 MILLION CHARGE AGAINST FIRSTQUARTER EARNINGS THE COMPANY SAID IT WILL OFFER EARLY RETIREMENT AND VOLUNTARY SEVERANCE PACKAGES THAT IT EXPECTS WILL MEET STAFF REDUCTION TARGETS OVER THE NEXT SIX MONTHS BUT THE COMPANY SAID IT MAY RESORT TO LAYOFFS IF NECESSARY BECAUSE OF THE CHARGE US BANCORP SAID IT EXPECTS TO POST A FIRSTQUARTER NET LOSS OF BETWEEN 15 MILLION AND 20 MILLION OR 15 CENTS TO 20 CENTS A SHARE ANALYSTS HAD BEEN EXPECTING A PROFIT OF ABOUT 62 CENTS THE COMPANY SAID US BANCORP LAST FALL HIRED FIRST MANHATTAN CONSULTANT GROUP TO HELP ANALYZE ITS OPERATIONS AND IDENTIFY EFFICIENCY MEASURES GERRY CAMERON THE BANKING COMPANY'S CHIEF EXECUTIVE SAID US BANCORP HAS RESOLVED TO CUT ITS EXPENSE RATIO IN THREE YEARS FROM 657 TO 59 THE LEVEL OF TOPPERFORMING BANKS THEY ARE TRYING TO CATCH UP WITH STEPS THAT MOST OF THEIR PEERS HAVE ALREADY TAKEN SAID ANDY BROWN AN ANALYST AT SALOMON BROTHERS INC EVERYBODY WAS LOOKING FOR GERRY CAMERON TO DO SOMETHING LIKE THIS AND I THINK THERE WILL BE MORE ACTIONS IN THE NEAR FUTURE US BANCORP CLOSED UNCHANGED AT 2575 IN NASDAQ STOCK MARKET TRADING 9403170089 940317 INTERNATIONAL SAUDI ARABIAN BIDDER TO PAY 7493 MILLION FOR OK PETROLEUM STOCKHOLM SAUDI ARABIAN BUSINESSMAN SHEIK MOHAMMED ALAMOUDI EMERGED AS THE SURPRISE WINNER OF A 10MONTH BIDDING WAR FOR SWEDEN'S BIGGEST INDEPENDENT OIL COMPANY OK PETROLEUM AB MR ALAMOUDI AGREED TO PAY 59 BILLION SWEDISH KRONOR 7493 MILLION FOR OK PETROLEUM'S EQUITY OUTSTANDING AND WILL ASSUME AN ADDITIONAL 36 BILLION KRONOR OF DEBT OK PETROLEUM WENT ON THE BLOCK LAST MAY AND THE SWEDISH GOVERNMENT HAS TOUTED SALE OF ITS 24 STAKE AS A KEY ITEM IN A PRIVATIZATION PROGRAM THE HEFTY PRICE FETCHED BY OK PETROLEUM SPURRED SPECULATION THAT COVERT FINANCIAL BACKERS MAY BE SUPPORTING MR ALAMOUDI WHO IS DESCRIBED BY AN ASSOCIATE AS A JEDDAHBASED BUSINESSMAN IN HIS MID40S WITH INTERESTS RANGING FROM CONTRACTING AND PROPERTY TO HOTELS AND HOSPITAL ADMINISTRATION SAUDI ARABIA HAS HUNTED AROUND THE WORLD FOR REFINERIES AS A WAY TO BOOST SALES OF ITS HUGE OIL PRODUCTION IN THE FORM OF REFINED PRODUCTS IN RETAIL MARKETS AND REDUCE THE SHARE OF OUTPUT SOLD AS CHEAPER COMMODITY CRUDE CAPACITY AT OK PETROLEUM'S TWO REFINERIES IS 265000 BARRELS A DAY ROUGHLY 25 OF TOTAL SCANDINAVIAN OUTPUT OK PETROLEUM ALSO PLANS TO TIGHTEN RELATIONS WITH SAUDI ARAMCO THE STATE OIL GIANT WE'LL LOOK INTO THE POSSIBILITY OF ENLARGING THE SHORTTERM CRUDE CONTRACT THAT OK HAS WITH SAUDI ARAMCO AND PROBABLY ESTABLISH A LONGTERM CRUDE CONTRACT SAID MR GHAZI HABIB AN EXECUTIVE WHO WILL BE MR AMOUDI'S REPRESENTATIVE ON OK'S BOARD 9403170088 940317 MONEYFUND YIELDS ROSE A BIT IN WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS ROSE A BIT IN THE WEEK ENDED TUESDAY IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS CREPT UP TO 287 FROM 285 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS ROSE TO 283 FROM 281 WHILE THE 30DAY SIMPLE YIELD INCHED UP TO 280 FROM 278 THE 30DAY COMPOUND YIELD ROSE TO 284 FROM 282 ASSETS OF 645 TAXABLE FUNDS DECREASED BY 1284 MILLION TO 47880 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS TOOK OUT 4087 MILLION WHILE INDIVIDUAL INVESTORS PUT IN 2803 MILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER OR SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY ONE DAY TO 50 DAYS THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD SLIPPED TO 189 FROM 195 IN THE LATEST WEEK THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 295 FOR SOMEONE PAYING 36 IN TAXES AND TO 313 FOR THOSE WHO PAY 396 ASSETS OF 346 TAXEXEMPT FUNDS ROSE BY 3754 MILLION TO 11648 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY SHORTENED BY ONE DAY TO 54 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9403170087 940317 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG OVER THE PAST DECADE APPLE'S MACINTOSH COMPUTERS HAVE GENERATED HIGH CUSTOMER SATISFACTION AND NEARFANATICAL OWNER LOYALTY YET FAILED TO DOMINATE THE COMPUTER MARKET LAST YEAR APPLE SOLD ABOUT 15 OF ALL PCS IN THE US WHILE SALES OF DOZENS OF OTHER BRANDS BUILT TO THE COMPETING IBMCOMPATIBLE STANDARD TOTALED NEARLY 85 CRITICS HAVE LONG ATTRIBUTED THIS PARADOX TO THREE FLAWS IN THE MACINTOSH A HIGH PRICE RELATIVELY SLOW COMPUTING SPEED AND AN INABILITY TO RUN PROGRAMS DESIGNED FOR IBMCOMPATIBLES EQUIPPED WITH MICROSOFT'S DOS AND WINDOWS SOFTWARE NOW APPLE HAS INTRODUCED A LINE OF AGGRESSIVELY PRICED IMPRESSIVELY SPEEDY MACS THAT TRIES TO CORRECT ALL THESE DEFICIENCIES IT'S CALLED THE POWER MACINTOSH AND IS BASED ON A VERY FAST NEW CENTRAL PROCESSOR CHIP THE BRAIN OF A COMPUTER CALLED THE POWERPC IT'S SO POWERFUL IT CAN RUN THREE KINDS OF SOFTWARE OLDER MACINTOSH PROGRAMS WRITTEN FOR PRIOR MAC MODELS NEW MACINTOSH PROGRAMS WRITTEN FOR THE POWERPC AND EVEN IBMCOMPATIBLE SOFTWARE IF YOU BUY A SPECIAL MACINTOSH PROGRAM THAT EMULATES AN IBMCOMPATIBLE PC AND RUNS DOS AND WINDOWS AFTER SEVERAL WEEKS OF TESTING A MIDRANGE POWER MACINTOSH I BELIEVE IT IS A BEAUTIFULLY DESIGNED PC THAT SQUARELY ADDRESSES THE MAC'S LONGSTANDING WEAKNESSES BUT I DON'T THINK EVERYBODY SHOULD RUSH OUT AND BUY ONE RIGHT AWAY THIS WEEK I'LL EXPLAIN WHY NEXT WEEK I'LL TACKLE THE ISSUE OF RUNNING IBMCOMPATIBLE PROGRAMS ON THE NEW MACINTOSHES THE POWER MACINTOSH GIVES APPLE FOR THE FIRST TIME IN MEMORY CLEAR PRICE/PERFORMANCE LEADERSHIP OVER IBMCOMPATIBLE MACHINES THE MOST BANG FOR THE BUCK INDEPENDENT LAB TESTS SHOW THE POWERPC CHIP TO BE AT LEAST AS FAST AS THE FASTEST CHIP USED IN IBMCOMPATIBLES INTEL'S PENTIUM AND MUCH FASTER AT SOME TASKS IN MY UNSCIENTIFIC TESTS THE POWER MAC RIPPED THROUGH TRADITIONALLY PONDEROUS JOBS LIKE ALTERING COMPLEX GRAPHICS IT WAS POSITIVELY AMAZING AT MUCH MORE MUNDANE FEATS LIKE CHANGING A HUNDRED INSTANCES OF A WORD IN A 20PAGE TEXT DOCUMENT ALMOST INSTANTANEOUSLY THE MACHINES ARE AT LEAST TWICE AS FAST AS THE FASTEST PREVIOUS MACS AND RETAIN ALL THE BUILTIN FEATURES AND ELEGANT DESIGN THAT HAVE LONG MADE MACS EASIER TO USE CONFIGURE AND EXPAND THAN OTHER PCS THE BASE POWER MAC MODEL CALLED THE 6100/60 IS OFFICIALLY PRICED AT JUST 1819 WITH EIGHT MEGABYTES OF MEMORY AND A 160 MEGABYTE HARD DISK AND WAS SELLING THIS WEEK AT ONE NEW YORK DISCOUNT STORE FOR 1599 WITH MONITOR AND KEYBOARD IT COULD BE HAD FOR AROUND 2000 WAY BELOW THE TYPICAL IBMCOMPATIBLE WITH A PENTIUM CHIP EVEN AFTER ADDING A LARGER HARD DISK AND A CDROM DRIVE OR MORE MEMORY AND THE PROGRAM THAT LETS THE MACHINE RUN IBMCOMPATIBLE SOFTWARE THE PRICE OF THIS BASE MODEL IS STILL BELOW 3000 HUNDREDS LESS THAN A PENTIUM SYSTEM THE BRAWNIEST OF THE THREE MODELS THE 8100/80 WITH VAST MEMORY AND A HUGE HARD DISK CAN RUN TO NEARLY 6000 AT DISCOUNT BUT JUST BUYING A COMPUTER WITH A FAST PROCESSOR CHIP DOESN'T GET YOU ANYTHING UNLESS IT ACTUALLY RUNS THE SOFTWARE YOU USE MUCH FASTER OR PERMITS ADDED FEATURES IN SOFTWARE THAT ARE OF PRACTICAL BENEFIT AND THAT'S THE CATCH IN THE POWER MACINTOSH THE MACHINE'S HIGH SPEEDS AND INCREASED POWER CAN ONLY BE ACHIEVED WHEN RUNNING SOFTWARE THAT HAS BEEN REVISED OR CREATED TO TAKE ADVANTAGE OF THE POWERPC CHIP AND THERE ARE ONLY A HANDFUL OF SUCH NATIVE PROGRAMS AVAILABLE NOW THE POWER MACS DO A GREAT JOB OF RUNNING OLDER MACINTOSH PROGRAMS THAT WEREN'T DESIGNED FOR THE POWERPC A TOUGH TECHNICAL FEAT BUT THESE PROGRAMS ONLY RUN ABOUT AS FAST ON POWER MACS AS THEY DO ON STANDARD MACS AND THE POWER MACS RUN MANY DOS AND WINDOWS PROGRAMS ACCEPTABLY BUT MORE SLOWLY THAN THE FASTEST IBMCOMPATIBLES APPLE SAYS 60 NATIVE POWER MACINTOSH VERSIONS OF POPULAR PROGRAMS WILL BE AVAILABLE WITHIN A MONTH OR SO BUT MANY OF THESE ARE HIGHEND GRAPHICS DESKTOP PUBLISHING OR DESIGN PROGRAMS WHICH BENEFIT IMMENSELY FROM THE MACHINES' GREAT SPEED SO IF YOU USE A COMPUTER FOR THIS KIND OF WORK BUYING A POWER MAC SOON MAKES GOOD SENSE A FEW MORE GENERAL BUSINESS PROGRAMS NOTABLY THE WORDPERFECT WORD PROCESSOR AND THE CLARISWORKS INTEGRATED PROGRAM WILL BE AVAILABLE QUICKLY BUT BEAR IN MIND THAT IF YOU MAINLY JUST WRITE ON YOUR COMPUTER THE HIGHER SPEEDS OF POWERPC AND PENTIUM CHIPS MAY NOT MAKE A DRAMATIC DIFFERENCE YOU CAN ONLY TYPE AND READ SO FAST THE TWO LEADING MACINTOSH BUSINESS PROGRAMS MICROSOFT'S WORD FOR WRITING AND ITS EXCEL SPREADSHEET WON'T BE AVAILABLE IN NATIVE POWER MAC VERSIONS TILL LATE SUMMER APPLE SAYS HUNDREDS MORE NATIVE POWER MAC PROGRAMS ARE COMING BUT MANY WON'T BE HERE UNTIL 1995 WHEN EVEN CHEAPER POWER MACINTOSH MODELS WILL BE OUT MANY OF THE THOUSANDS OF OTHER MAC PROGRAMS INCLUDING VERY POPULAR PACKAGES LIKE INTUIT'S QUICKEN PERSONALFINANCE PACKAGE AREN'T SCHEDULED TO BE REVISED FOR POWERPC THEY'LL RUN ON A POWER MAC BUT NO FASTER THAN THEY DO NOW IF YOU'RE IN THE MARKET FOR A NEW MIDRANGE COMPUTER ANYWAY THE POWER MACINTOSH IS AN IMPRESSIVE VALUE THAT'S WELL WORTH CONSIDERING BUT IF YOU'RE TEMPTED TO REPLACE OR UPGRADE YOUR MACHINE EARLY BECAUSE YOU LUST AFTER THE POWERPC'S SPEED MAKE SURE THE NEW MACS CAN DRASTICALLY IMPROVE THE SPECIFIC TASKS FOR WHICH YOU REALLY USE YOUR COMPUTER THAT'S THE ACID TEST FOR BOTH POWERPC AND PENTIUM COMPUTERS NOT SPEED RATINGS ON A LAB REPORT 9403170086 940317 MARKETING & MEDIA NEW YORK TIMES CO NEWSDAY TO CUT STAFF BY OFFERING BUYOUTS NEW YORK REFLECTING SEVERE COMPETITION IN THE LARGEST US NEWSPAPER MARKET THE NEW YORK TIMES AND NEWSDAY BOTH SAID THEY WOULD TRIM WHITECOLLAR STAFF THROUGH BUYOUT OFFERS THE NEW YORK TIMES FLAGSHIP PAPER OF NEW YORK TIMES CO SAID IT OFFERED BUYOUTS TO 700 NONUNION EMPLOYEES IN ITS NEWS CIRCULATION AND ADVERTISING DEPARTMENTS A SPOKESWOMAN SAID THE OFFER IS PART OF A PREVIOUSLY REPORTED EFFORT TO TRIM STAFF BY ABOUT 10 THE TIMES BUYOUT OPEN UNTIL MAY 6 OFFERS TWO YEARS' PAY FOR THOSE WITH 35 YEARS OR MORE OF SERVICE ON THE LOW END THOSE WITH SIX YEARS' SERVICE OR LESS COULD TAKE 15 WEEKS' BASE PAY IN THE BUYOUT THE NEWSPAPER GUILD SAID BUYOUT OFFERS FOR SOME OF THE UNION'S 1600 EDITORIAL AND COMMERCIAL WORKERS AT THE TIMES WERE BEING DISCUSSED THE TIMES DECLINED COMMENT THE NEWSDAY BUYOUT OFFERS 2 1/2 WEEKS PAY FOR EACH YEAR ON THE JOB UP TO A MAXIMUM OF 60 WEEKS IN AMERICAN STOCK STOCK EXCHANGE TRADING NEW YORK TIMES GAINED 25 CENTS TO 28 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TIMES MIRROR FELL 25 CENTS TO 33875 9403170085 940317 UAL BUYOUT DEADLINE PASSES WITHOUT ACCORD MACHINISTS CALL THE BURDEN OF CONCESSIONS UNFAIR PUSH FOR DEAL CONTINUES BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE PROPOSED 5 BILLION EMPLOYEE BUYOUT OF UAL CORP HIT A SNAG EARLY YESTERDAY FORCING LEADERS OF THE AIRLINE AND ITS UNIONS TO SCRAMBLE TO TRY AND GET THE DEAL BACK ON TRACK THE PARTIES MISSED A 1201 AM EST DEADLINE FOR SIGNING A DEFINITIVE AGREEMENT AFTER MACHINISTS UNION NEGOTIATORS SUDDENLY BALKED CLAIMING MANAGEMENT AND NONCONTRACT EMPLOYEES WEREN'T FAIRLY SHOULDERING WAGE CONCESSIONS AT THIS POINT THE PARTIES COULD AGREE TO EXTEND THE DEADLINE BUT IN A STATEMENT UAL SAID ONLY THAT THERE COULD BE NO ASSURANCE THAT THE TRANSACTION WILL BE COMPLETED DESPITE THE SETBACK STOCK ANALYSTS WERE HOPEFUL THAT UAL AND THE UNIONS WILL COMPLETE THE ACCORD IN WHICH EMPLOYEES WOULD OFFER WAGE AND OTHER CONCESSIONS IN RETURN FOR EQUITY IN THE AIRLINE THAT WOULD MAKE UNITED AIRLINES THE NATION'S BIGGEST CARRIER THE LARGEST COMPANY MAJORITYOWNED BY ITS EMPLOYEES THIS DEAL MAKES SO MUCH SENSE SAYS MAX HOLMES A HIGHYIELD STRATEGIST WITH SALOMON BROS NOTING THAT SEVERAL OTHER MAJOR CARRIERS INCLUDING USAIR GROUP INC AND DELTA AIR LINES ARE SIMILARLY TRYING TO ADDRESS THEIR HIGHCOST STRUCTURES THE UNIONS PROPOSED THE DEAL HOW COULD THEY NOT DO IT UAL'S STOCK FELL SLIGHTLY ON THE NEWS BUT RALLIED TO RISE 2375 TO 131375 A SHARE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AFTER THE PILOTS UNION SAID ITS CHAIRMAN ROGER HALL WAS IN DISCUSSIONS WITH STEPHEN M WOLF UAL CHAIRMAN AND JOHN PETERPAUL THE CHIEF NEGOTIATOR FOR THE MACHINISTS UNION STILL THE STOCK CONTINUED TO TRADE WELL BELOW THE VALUE OF THE EMPLOYEEBUYOUT PROPOSAL WHICH OFFERS A PACKAGE OF CASH AND SECURITIES THAT THE UNIONS HAVE VALUED AT 173 A SHARE THAT PARTLY REFLECTS THE FACT THAT THE BUYOUT ISN'T EXPECTED TO BE COMPLETED UNTIL LATE SUMMER AND INVESTORS DON'T WANT TO TIE UP THEIR MONEY IN UAL WITH ANY BIG RETURN STILL MONTHS DOWN THE ROAD AFTER FOUR CONSECUTIVE YEARS OF LOSSES UNITED IS HOPING TO USE THE CONCESSIONSFOREQUITY TRANSACTION TO SUBSTANTIALLY LOWER ITS LABOR COSTS AND CREATE A SHORTFLIGHT AIRLINE WITH THE BLESSING OF ITS UNIONS UAL HAS SAID SUCH A PLAN WOULD MAKE IT A STRONGER AIRLINE AND ADDRESS ITS LONGTERM FINANCIAL VIABILITY THE MISSED DEADLINE COULD AFFECTS UAL'S PLANS FOR A SHORTFLIGHT CARRIER THE AGREEMENT IN PRINCIPLE APPROVED BY UAL'S BOARD LATE LAST YEAR SAID THE COMPANY COULDN'T PROCEED WITH ANY PLANS THAT THREATEN EMPLOYEE JOB SECURITY IF A DEFINITIVE ACCORD WAS SIGNED BY MARCH 15 WITH THAT DEADLINE PASSED HOWEVER UNITED APPARENTLY IS NOW FREE TO MOVE FORWARD WITH PLANS TO CONTRACT OUT WORK AND SET UP A SHORTFLIGHT CARRIER WITHOUT THE UNIONS' BLESSING FOR MOST OF LAST YEAR THE UNIONS WORKED IN EARNEST TO NEGOTIATE THE BUYOUT AGREEMENT PRECISELY TO PREVENT THE COMPANY FROM TAKING SUCH STEPS IN REFUSING TO SIGN THE DEFINITIVE ACCORD THE INTERNATIONAL ASSOCIATION OF MACHINISTS SAID YESTERDAY THAT THE UNION WILL NOT BE A PARTY TO ANY AGREEMENT THAT ISN'T FAIR OR EQUITABLE TO OUR MEMBERS OR THAT DOESN'T ADDRESS FUNDAMENTAL PROBLEMS FACING UNITED AIRLINES THE LEADERS OF THE PILOTS UNION APPROVED THE DEFINITIVE AGREEMENT LAST WEEKEND THE MACHINISTS' STANCE PARTLY REFLECTS INTERNAL UNION POLITICS THE BUYOUT TRANSACTION HAS BEEN BROADLY UNPOPULAR WITH THE UNION'S RANK AND FILE WHICH NARROWLY RATIFIED THE DEAL WITH ONLY 56 VOTING IN FAVOR THE MACHINISTS ENTERED THE BUYOUT NEGOTIATIONS PRIMARILY TO PROTECT THEIR JOBS WHILE THE PILOTS' MAIN GOAL WAS TO GAIN A CONTROLLING STAKE IN THE AIRLINE AS A RESULT MANY MACHINISTS UNION MEMBERS FELT THEIR LEADERS PROMISED DEEPER WAGE CONCESSIONS THAN WERE NECESSARY THE MACHINISTS AGREED TO TAKE WAGE CUTS OF ABOUT 10 OVER NEARLY SIX YEARS UNDER THE TRANSACTION HAD THE PARTIES BEEN ABLE TO AGREE ON A PURCHASE OF LESS THAN A MAJORITY STAKE WHICH THE PILOTS STAUNCHLY REFUSED TO DO THE MACHINISTS WOULD BE FACING SMALLER WAGE REDUCTIONS THE SIMMERING RESENTMENT WORSENED IN RECENT WEEKS HOWEVER AFTER THE UNIONS LEARNED THAT UNITED HAD INSTITUTED A TWOTIER WAGE PROGRAM PAYING LOWER SCALES TO NEW NONUNION EMPLOYEES AND GIVING THEM FEWER BENEFITS UNDER THE BUYOUT TRANSACTION UNITED'S NONCONTRACT EMPLOYEES AND MANAGERS WERE SUPPOSED TO GIVE UP ABOUT 10 OF THEIR PAY JUST LIKE THE MACHINISTS BUT THE MACHINISTS UNION MEMBERS ACCORDING TO LABOR INDUSTRY CONSULTANTS FIGURED THAT THE EXISTING NONCONTRACT EMPLOYEES WOULD ACTUALLY END UP REDUCING THEIR PAYCHECKS LESS THAN 10 THE REASONING GOES THAT THE CONCESSIONS PLEDGED BY THE NONUNION EMPLOYEES SOME 509 MILLION WOULD BE BUTTRESSED BY THE LOWER WAGES AND BENEFITS FOR NEW EMPLOYEES IN LIGHT OF THAT THE UNION LEADERS ACCORDING TO INDIVIDUALS WHO HAVE WORKED WITH THEM RECENTLY FELT IT WAS GROWING HARDER DAY BY DAY TO MAINTAIN SUPPORT AMONG THE UNIONS'S MECHANICS AND GROUNDS WORKERS FOR THE BUYOUT TRANSACTION A MACHINIST UNION SPOKESMAN WOULDN'T COMMENT ON THE ISSUE A UNITED SPOKESMAN SAID ONLY WE KNOW THAT HAS BEEN A CONCERN OF THEIRS THE MACHINISTS HAVE ALSO HAD DISAGREEMENTS WITH THE PILOTS OVER HOW MUCH TO PAY GERALD GREENWALD THE FORMER CHRYSLER CORP VICE CHAIRMAN THE UNIONS CHOSE TO BE CHIEF EXECUTIVE SHOULD THE BUYOUT SUCCEED AND OVER FEES PAID TO ADVISERS WITH THE DEADLINE FOR A DEFINITIVE AGREEMENT NOW PASSED THE NEXT DEADLINE FOR THE TRANSACTION IS A CLOSING DATE OF AUG 31 9403170084 940317 TRUSTEES OF GRUMMAN PLAN SEEK GUIDANCE ON OFFERS BETHPAGE NY TRUSTEES OF A GRUMMAN CORP EMPLOYEE STOCK PLAN WHICH OWNS ONETHIRD OF GRUMMAN'S STOCK HIRED AN INVESTMENT BANKER AND LAW FIRM TO HELP CONSIDER TWO COMPETING TAKEOVER BIDS FOR THE AIRCRAFT MAKER THE THREE TRUSTEES HIRED THE INVESTMENT FIRM OF ROTHSCHILD INC AND THE LAW FIRM OF WHITMAN BREED ABBOTT & MORGAN TO EVALUATE THE BIDS BY MARTIN MARIETTA CORP AND NORTHROP CORP THE TRUSTEES WHO ARE ALL GRUMMAN EXECUTIVES ARE IMPORTANT TO THE TAKEOVER BATTLE BECAUSE THEY HAVE THE RIGHT TO DECIDE HOW TO TENDER THE STOCK IN THE PLAN THEY MAY ALSO DECIDE TO PASS THROUGH THAT DECISION TO EACH PARTICIPANT IN THE PLAN 9403170082 940317 BUFFETT HAS BILLIONS FOR A TAKEOVER BUT NOTHING HAS CAUGHT HIS EYE YET BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL MERGER MANIA MIGHT BE BACK IN STYLE BUT WARREN BUFFETT IS HAVING A HARD TIME SPENDING 2 BILLION TO 3 BILLION A YEAR AGO THE INVESTOR WHOSE NAME IS OFTEN PRECEDED BY THE WORD LEGENDARY LET IT BE KNOWN IN HIS ANNUAL LETTER TO BERKSHIRE HATHAWAY INC STOCKHOLDERS THAT HE WOULD LIKE TO SPEND THAT AMOUNT IN A FRIENDLY TAKEOVER HE'S STILL LOOKING IF WE ARE TO HIT THE BULL'SEYE WE WILL NEED MARKETS THAT ALLOW THE PURCHASE OF BUSINESSES AND SECURITIES ON SENSIBLE TERMS CHAIRMAN BUFFETT WRITES IN THE 1993 ANNUAL REPORT BEING MAILED TO SHAREHOLDERS TODAY RIGHT NOW MARKETS ARE DIFFICULT BUT THEY CAN AND WILL CHANGE IN UNEXPECTED WAYS AND AT UNEXPECTED TIMES IN THE MEANTIME WE'LL TRY TO RESIST THE TEMPTATION TO DO SOMETHING MARGINAL SIMPLY BECAUSE WE ARE LONG ON CASH HE WRITES BERKSHIRE HATHAWAY WITH ITS BIG INSURANCE AND REINSURANCE BUSINESS AND ITS COLLECTION OF OPERATING COMPANIES AND INVESTMENTS HAD 184 BILLION IN CASH AS OF DEC 31 UP FROM 113 BILLION AT THE END OF 1992 IT HAD ANOTHER 21 BILLION OF INVESTMENTS IN OBLIGATIONS WITH FIXED MATURITIES AND 1254 BILLION IN MARKETABLE EQUITY SECURITIES MR BUFFETT WAS TRAVELING YESTERDAY AND COULDN'T BE REACHED FOR COMMENT BUT CHARLES MUNGER BERKSHIRE VICE CHAIRMAN AND MR BUFFETT'S CLOSE ADVISER NOTES THAT WITH HIGH EQUITY PRICES IT'S NO SURPRISE THAT THE BIG INVESTMENT HASN'T COME ALONG THE WHOLE HISTORY OF BERKSHIRE HATHAWAY IS DISCIPLINE SAYS MR MUNGER WHEN WE CAN'T FIND WHAT WE WANT WE DON'T BUY HE SAYS BERKSHIRE WHICH IS BASED IN OMAHA NEB DID SPEND SOME 440 MILLION IN BERKSHIRE STOCK LAST NOVEMBER FOR CLOSELY HELD DEXTER SHOE COS THAT COMBINED WITH THE PREVIOUS PURCHASE OF TWO OTHER SHOE CONCERNS MAKES FOOTWEAR ONE OF BERKSHIRE'S BIGGEST BUSINESSES MR BUFFETT SAYS 1994 SALES IN THE SHOE OPERATIONS SHOULD TOP 550 MILLION WITH PRETAX EARNINGS OF MORE THAN 85 MILLION FIVE YEARS AGO WE HAD NO THOUGHT OF GETTING INTO SHOES MR BUFFETT WRITES NOW WE HAVE 7200 EMPLOYEES IN THAT INDUSTRY AND I SING THERE'S NO BUSINESS LIKE SHOE BUSINESS' AS I DRIVE TO WORK SO MUCH FOR STRATEGIC PLANS AS HE AND MR MUNGER SCOUT FOR BIGGER PREY MR BUFFETT HAS A SMALL PITCH TO MAKE HE HAS INVITED SHAREHOLDERS TO AN OMAHA ROYALS MINOR LEAGUE BASEBALL GAME ON APRIL 23 TWO NIGHTS BEFORE BERKSHIRE'S ANNUAL MEETING MR BUFFETT WILL THROW OUT THE FIRST BALL HOPING TO IMPROVE ON LAST YEAR'S HUMILIATING PERFORMANCE WHEN HE SAYS HE ALMOST HIT HIS FOOT TICKETS ARE 5 I REGRET TO REPORT THAT YOU WON'T HAVE TO BUY THEM FROM SCALPERS WRITES MR BUFFETT WHO OWNS 25 OF THE TEAM 9403170080 940317 WHO'S NEWS VIACOM INC IS SAID TO LURE DOLGEN FROM SONY CORP BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK VIACOM INC HAS LURED VETERAN HOLLYWOOD BUSINESS EXECUTIVE JONATHAN DOLGEN AWAY FROM SONY CORP'S SONY PICTURES UNIT TO HEAD A NEW ENTERTAINMENT GROUP THAT WILL INCLUDE MOST OF THE OPERATIONS OF ITS RECENTLY ACQUIRED PARAMOUNT PICTURES CORP ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION NEITHER VIACOM NOR SONY OFFICIALS NOR MR DOLGEN COULD BE REACHED FOR COMMENT BUT MR DOLGEN REPORTEDLY HAS PERSUADED SONY TO LET HIM OUT OF HIS CONTRACT WITH THE COMPANY'S FILMEDENTERTAINMENT OPERATIONS THE MOVE IS SOMETHING OF A SURPRISE BECAUSE MR DOLGEN 47YEAROLD PRESIDENT OF SONY'S MOTIONPICTURE GROUP WAS JUST GIVEN EXPANDED RESPONSIBILITIES THERE BUT THE VIACOM POST WITH THE ACQUISITION OF PARAMOUNT IS A FAR BIGGER JOB REPORTING TO FRANK BIONDI VIACOM'S CHIEF EXECUTIVE OFFICER MOREOVER AT SONY MR DOLGEN WASN'T THE TOP EXECUTIVE OPERATING AS A MANAGEMENT TEAM IN TANDEM WITH MARK CANTON WHO LAST MONTH WAS NAMED TO HEAD BOTH THE COLUMBIA AND TRISTAR PICTURES UNITS OF SONY PICTURES MR CANTON OVERSEES CREATIVE OPERATIONS WHILE MR DOLGEN WAS RESPONSIBLE FOR BUSINESS OPERATIONS LATE YESTERDAY HOLLYWOOD EXECUTIVES SAID THE DEPARTURE IS A BLOW TO SONY PICTURES WHERE MR DOLGEN IS CONSIDERED THE MOST ASTUTE AND EXPERIENCED BUSINESS EXECUTIVE IN THE COMPANY'S MANAGEMENT RANKS AS REPORTED SONY CORP HAS BEEN SEEKING TO SELL A 25 INTEREST IN ITS ENTERTAINMENT OPERATIONS TO A TELECOMMUNICATIONS COMPANY OR OTHER STRATEGIC INVESTOR MR DOLGEN GAINED A REPUTATION AS A TOUGH FINANCIALLY SAVVY DEALMAKER AND STRATEGIST DURING AN EARLIER STINT AT COLUMBIA WHERE VIACOM'S MR BIONDI ALSO ONCE WORKED AND AT NEWS CORP'S FOX INC AT COLUMBIA BEFORE SONY'S ACQUISITION HE HELD A NUMBER OF EXECUTIVE POSITIONS STARTING IN 1976 BEFORE LEAVING TO JOIN FOX AS SENIOR EXECUTIVE VICE PRESIDENT IN 1985 BARRY DILLER THEN CHAIRMAN OF FOX AND NOW CHAIRMAN OF QVC INC ONCE DESCRIBED MR DOLGEN AS A STRONG WILLFUL EXECUTIVE WHO IS THE BEST PERSON I KNOW TO LOOK INTO THE BROKEN CORNERS OF A COMPANY AND FIX THEM TO GENERATE EARNINGS THOUGH HE IS KNOWN AS TOUGH ON SUBORDINATES AND SOMEWHAT ROUGH AROUND THE EDGES HE IS LIKELY TO BRING A STRONG DISCIPLINE TO PARAMOUNT'S TROUBLED ENTERTAINMENT OPERATIONS SHERRY LANSING HEAD OF THE MOTIONPICTURE GROUP WILL STAY ON AND REPORT TO MR DOLGEN BUT OTHER CHANGES ARE EXPECTED ONCE HE TAKES CONTROL 9403170079 940317 CORRECTIONS & AMPLIFICATIONS NN BALL & ROLLER INC IS BASED IN ERWIN TENN IN YESTERDAY'S SMALL STOCK FOCUS COLUMN IT WAS INCORRECTLY REPORTED THAT THE COMPANY'S HEADQUARTERS ARE IN ERWIN TEXAS READER'S DIGEST ASSOCIATION INC HAS A MANDATORY RETIREMENT AGE OF 65 FOR ITS SENIORLEVEL EXECUTIVES BASED ON ERRONEOUS INFORMATION SUPPLIED BY THE COMPANY A WHO'S NEWS ARTICLE YESTERDAY SAID THE COMPANY DOESN'T HAVE A MANDATORY RETIREMENT AGE 9403170078 940317 POLITICS & POLICY TYSON FOODS WITH A FRIEND IN THE WHITE HOUSE GETS GENTLE TREATMENT FROM AGRICULTURE AGENCY BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL FAYETTEVILLE ARK HIGH IN HIS SKYBOX HERE AT BUD WALTON ARENA POULTRY TYCOON DON TYSON RECENTLY ENTERTAINED PATRICIA JENSEN AN AGRICULTURE DEPARTMENT OFFICIAL FROM WASHINGTON AT AN ARKANSASVANDERBILT BASKETBALL GAME MS JENSEN IS IN LINE TO BECOME ASSISTANT SECRETARY IN CHARGE OF MEAT AND POULTRY INSPECTION BUT THIS DAY SHE WAS THE ONE UNDER INSPECTION BY MR TYSON MR CHICKEN HIMSELF A LONGTIME CLINTON FRIEND AND CAMPAIGN BANKROLLER VERY DEFINITELY SHE SAYS I HAD THE FEELING OF BEING LOOKED OVER FEW CORPORATIONS IN AMERICA HAVE STRONGER PERSONAL TIES TO BILL CLINTON THAN ARKANSASBASED TYSON FOODS INC AND FEW HAVE FARED BETTER IN THEIR DEALINGS WITH HIS AGRICULTURE DEPARTMENT OVER THE PAST YEAR AN AGRICULTURE DEPARTMENT BLITZ AGAINST UNSANITARY SLAUGHTERHOUSE PRACTICES HAS BYPASSED CHICKEN PROCESSORS AND THUS TYSON'S 66 PLANTS ALTOGETHER THIS HAS MEATPACKERS AND OTHERS COMPLAINING ABOUT SELECTIVE ENFORCEMENT THE DEPARTMENT ALSO HAS SIDED WITH THE TYSONDOMINATED ARKANSAS POULTRY FEDERATION IN A COURT FIGHT OVER A CALIFORNIA LABELING LAW AND WHILE IT HAS IMPOSED A ZERO TOLERANCE FECALMATTER POLICY ON MEATPACKERS IT HAS YET TO DO THE SAME FOR POULTRY DESPITE HIGH RATES OF SALMONELLA AND OTHER BACTERIA ON CHICKEN AND TURKEY IN FACT AGRICULTURAL DEPARTMENT OFFICIALS SAY THEY WERE WORKING ON A SIMILAR SANITARY POLICY FOR POULTRY LAST YEAR WHEN THEY WERE ORDERED BY AGRICULTURE SECRETARY MIKE ESPY TO DROP THE INITIATIVE LAST WEEK BOWING TO GROWING PRESSURE FROM CRITICS MR ESPY DECIDED TO SEEK PUBLIC COMMENT ON A SANITARY PROPOSAL FOR POULTRY BUT CONSUMER ADVOCATES DISMISS THE PROPOSAL AS A STALLING TACTIC AND AN INVITATION FOR COURT CHALLENGES AMONG OTHER THINGS THERE'S NO LEGAL EXCUSE FOR NOT JUST OUTLAWING FECES ON POULTRY ASSERTS THOMAS DEVINE ATTORNEY FOR THE GOVERNMENT ACCOUNTABILITY PROJECT A WASHINGTONBASED GROUP FOR WHISTLEBLOWERS THIS RULE PROPOSAL IS SO TENTATIVE SO WEAK IT'S A PHONY REFORM IT'S ANOTHER EXAMPLE OF TYSON'S CLOUT MR ESPY ACKNOWLEDGES MEETING WITH TYSON LOBBYISTS ALL THE TIME AMONG OTHER THINGS TYSON IN JANUARY FETED THE SECRETARY AT A DALLAS COWBOYSNEW YORK GIANTS FOOTBALL GAME BUT MR ESPY STRONGLY DENIES GIVING TYSON ANY UNDUE BREAKS NOTING THAT HE ALSO CONFERS OFTEN WITH REPRESENTATIVES OF CONSUMER AND LABOR GROUPS I'M VERY OPEN HE SAYS HIS AIDES SAY THE SECRETARY HAS FOCUSED MORE ON MEAT THAN POULTRY ISSUES SO FAR MOSTLY BECAUSE OF LAST YEAR'S FOODPOISONING OUTBREAK FROM E COLITAINTED GROUND BEEF IN THE WEST AND THEY ASSERT THAT THE DEPARTMENT HAS MADE MORE FOODSAFETY IMPROVEMENTS IN THE PAST 12 MONTHS THAN WERE MADE IN THE PREVIOUS 12 YEARS OF REPUBLICAN ADMINISTRATIONS ARCHIE SCHAFFER A TYSON SPOKESMAN ALSO DENIES THAT THE COMPANY HAS GOTTEN ANY BREAKS FROM THE AGRICULTURE DEPARTMENT RUMORS OF TYSON'S INFLUENCE ARE GREATLY EXAGGERATED HE SAYS WE TALK TO PEOPLE AT THE USDA WE HAVE USDA PEOPLE COME HERE TO VISIT US BUT THAT HASN'T TRANSLATED INTO ANY SPECIAL FAVORS STILL THE TYSONCLINTON CONNECTION STANDS OUT EVEN IN A DEPARTMENT LONG FAULTED FOR A TENDENCY TO ACCOMMODATE AGRIBUSINESS INTERESTS JAMES BLAIR TYSON'S GENERAL COUNSEL AND HIS WIFE DIANE A POLITICAL SCIENTIST ARE OLD FRIENDS OF BILL AND HILLARY RODHAM CLINTON AND SLEPT AT THE WHITE HOUSE THE NIGHT OF THE CLINTON INAUGURATION TYSON HAS LONG BEEN REPRESENTED BY THE ROSE LAW FIRM MRS CLINTON'S FORMER FIRM DON TYSON MEANWHILE HAS BEEN A LOYAL CLINTON BACKER FOR YEARS FLYING HIM AROUND ARKANSAS ON TYSON AIRCRAFT AND PICKING UP THE TAB FOR MANY MEALS INCLUDING A DINNER PARTY LAST YEAR AT NORA A TRENDY WASHINGTON RESTAURANT MR TYSON'S COMPANY OBTAINED NEARLY 8 MILLION IN STATE TAX BREAKS FOR PLANT EXPANSIONS DURING THE 1980S WHILE STATE REGULATORS UNDER THENGOV CLINTON TOOK A RELAXED ATTITUDE TOWARD WATER POLLUTION FROM TYSON'S PLANTS AND CONTRACT GROWERS LOCAL ENVIRONMENTALISTS SAY MR CLINTON RECEIVED CAMPAIGN CONTRIBUTIONS FROM TYSON EXECUTIVES AND FAMILY MEMBERS INCLUDING 22000 FOR HIS PRESIDENTIAL CAMPAIGN IN 1991 AND 1992 THEY ALSO DONATED AN ADDITIONAL 12000 TO DEMOCRATIC PARTY ORGANIZATIONS MR TYSON WHO DECLINED TO BE INTERVIEWED FOR THIS ARTICLE AND OTHER TYSON EXECUTIVES ALSO CONTRIBUTED 4000 TO THE FAILED MISSISSIPPI CONGRESSIONAL BID OF MR ESPY'S BROTHER HENRY LAST YEAR WHILE THE TYSON FOODS POLITICAL ACTION COMMITTEE CHIPPED IN AN ADDITIONAL 2000 EVEN IN PERSONNEL MATTERS CRITICS CONTEND THE CLINTON ADMINISTRATION SEEMS MINDFUL OF TYSON'S INTERESTS EARLY LAST YEAR FOR EXAMPLE PRESSURE FROM WHITE HOUSE OFFICIALS AND MEMBERS OF THE ARKANSAS CONGRESSIONAL DELEGATION INDUCED MR ESPY TO ABANDON A REORGANIZATION PLAN THAT WOULD HAVE GIVEN ELLEN HAAS STRONGWILLED CONSUMER ADVOCATE CONTROL OF MEAT AND POULTRY INSPECTION AS WELL AS CONSUMER PROGRAMS INSTEAD SHE GOT THE JOB OF ASSISTANT SECRETARY FOR FOOD AND CONSUMER SERVICES WHILE SHE DECLINED TO COMMENT PUBLICLY SEVERAL FRIENDS OF MS HAAS SAY SHE TOLD THEM SHE BELIEVES TELEPHONE CALLS FROM TYSON TO THE WHITE HOUSE SCOTCHED HER CHANCES OF GETTING THE PROPOSED BIGGER JOB BUT MR ESPY SAYS HE DROPPED THE PLAN BECAUSE OF INDUSTRY OPPOSITION TO ITS PARTICULARS ELLEN HAD NOTHING TO DO WITH IT HE SAYS WHEN IT COMES TO SURPRISE INSPECTIONS THE AGRICULTURE DEPARTMENT HAS GIVEN MOST OF THE POULTRY INDUSTRY A PASS LAST SPRING IN THE WAKE OF THE GROUNDBEEF CONTAMINATION CASE A TEAM OF ROVING FEDERAL INSPECTORS DESCENDED UNANNOUNCED ON 90 CATTLE SLAUGHTERHOUSES AND SHUT DOWN 30 TEMPORARILY BUT THERE HAS BEEN NO SIMILAR CRACKDOWN ON CHICKEN PROCESSORS DESPITE THE FACT THAT SALMONELLA CAMPYLOBACTER AND OTHER BACTERIA CAUSE MILLIONS OF FOODPOISONING CASES AND THOUSANDS OF DEATHS ANNUALLY AS COMPARED WITH 20000 CASES OF E COLI POISONING ONLY SOME OF WHICH ARE FATAL MR ESPY'S AIDES NOTE THOUGH THAT AGRICULTURE INSPECTORS DID LAUNCH A ROUND OF SURPRISE INSPECTIONS AT SEVERAL TURKEY PLANTS TYSON DOESN'T OWN ANY TURKEY PLANTS SOME SEE THE DISPUTE OVER THE CALIFORNIA LABELING LAW AS ANOTHER EXAMPLE OF TYSON CLOUT THE DEPARTMENT ALLOWS POULTRY FROZEN AT ZERO DEGREES FAHRENHEIT TO BE LABELED FRESH WHILE THE STATE OF CALIFORNIA SETS THE LIMIT AT 25 DEGREES THE ARKANSAS POULTRY FEDERATION AND TWO OTHER TRADE GROUPS HAVE SUED IN FEDERAL COURT TO BLOCK ENFORCEMENT OF THE STATE LIMIT WHICH WOULD CREATE DISTRIBUTION PROBLEMS FOR PROCESSORS IN ARKANSAS AND OTHER BROILER BELT STATES THE AGRICULTURE DEPARTMENT HAS INTERVENED ON THEIR SIDE ARGUING IN A BRIEF THAT FEDERAL REGULATION PREEMPTS MORE STRINGENT STATE LAW CAROL KELLERMAN AN ATTORNEY FOR A GROUP OF CALIFORNIA POULTRY PROCESSORS CHARGES THAT THE DEPARTMENT HAD PREVIOUSLY IGNORED FRESH LABELING LAWS IN OTHER STATES TYSON'S MR SCHAFFER THOUGH CONTENDS THAT POLITICAL CLOUT REALLY LIES WITH THE CALIFORNIA PROCESSORS WHO ARE TRYING TO KEEP COMPETITORS OUT OF THEIR LUCRATIVE MARKET AS PROOF HE CITES A RECENT DIRECTIVE BY MR ESPY TO REEXAMINE THE DEPARTMENT'S FRESHLABELING POLICY MS KELLERMAN COUNTERS THERE ISN'T ANY SERIOUS REEVALUATION GOING ON MOST VEXING TO CONSUMER ADVOCATES AND MEATPACKERS IS MR ESPY'S ZEROTOLERANCE FECALCONTAMINATION POLICY A YEAR AGO DEPARTMENT OFFICIALS WERE WORKING ON SUCH A POLICY FOR THE POULTRY INDUSTRY IT WOULD HAVE SHARPLY TIGHTENED REQUIREMENTS TO TRIM OFF RATHER THAN WASH OFF BADLY CONTAMINATED FLESH WINGS OR LEGS BUT THE OFFICIALS SAY THAT THEY WERE TOLD BY MR ESPY'S OFFICE TO DROP THE PROPOSAL AND THAT AN ESPY AIDE ORDERED THEM TO TURN OVER ALL EVIDENCE OF THEIR WORK INCLUDING INFORMATION IN COMPUTERS THEY ALSO SAY THE DEPARTMENT'S FOODSAFETY SPOKESMAN WAS OUSTED AFTER TELLING A REPORTER THAT ZEROTOLERANCE SOON WOULD BE EXTENDED TO POULTRY THE DEPARTMENT SAYS THE SPOKESMAN WAS REMOVED FOR UNRELATED REASONS THE DEPARTMENT STILL HASN'T WORKED OUT THE DETAILS OF THE POULTRY PROPOSAL MR ESPY ANNOUNCED LAST WEEK BUT CONGRESSIONAL AIDES AND CONSUMER GROUPS WHO HAVE BEEN BRIEFED ON THE PROPOSAL SAY IT WILL EMPHASIZE WASHING OVER TRIMMING YOU CAN'T CARVE POULTRY MR ESPY SAYS NOTING THAT A BIRD WITHOUT A WING OR LEG IS NOT VERY APPEALING 9403170077 940317 IN THE LAND OF BIG EGOS DEPUTY CHAIRMAN ARE FIGHTING WORDS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL BILL SHUTZER IS EITHER A FORMER HIGHRANKING INVESTMENT BANKING OFFICIAL OF LEHMAN BROTHERS INC OR HE ISN'T ONE THING IS CERTAIN HE'S THE CENTER OF A WALL STREET TIFF OVER TITLES AND EGOS LAST WEEK THE SMALL NEW YORK BROKERAGE FIRM OF FURMAN SELZ INC ANNOUNCED THAT WILLIAM A BILL SHUTZER BANKER FOR SUCH BIG CLIENTS AS TIFFANY & CO AND HALLMARK CARDS INC WAS JOINING FURMAN AS HEAD OF INVESTMENT BANKING HE'D SPENT 22 YEARS AT LEHMAN BROTHERS THE BROKERAGE HOUSE UNIT OF AMERICAN EXPRESS CO MR SHUTZER HAD BEEN A MEMBER OF LEHMAN'S MANAGEMENT COMMITTEE FURMAN SELZ ANNOUNCED AND HAD ONCE SERVED AS DEPUTY CHAIRMAN OF MERGERS AND ACQUISITIONS FOR LEHMAN'S CORPORATE PREDECESSOR SHEARSON LEHMAN BROTHERS INC RESUME INFLATION CHARGED A SPOKESMAN FOR LEHMAN WHO SAID THERE IS NOT AND NEVER HAS BEEN A DEPUTY CHAIRMAN OF MERGERS OR ANY OTHER DEPARTMENT AT LEHMAN FURTHER MR SHUTZER WAS NEVER ON THE MANAGEMENT COMMITTEE BECAUSE LEHMAN DOESN'T HAVE ONE HE SAID THAT WAS NEWS TO MR SHUTZER WHO SAYS OF HIMSELF BILL SHUTZER WAS A VERY SENIOR GUY AT LEHMAN BROTHERS MR SHUTZER POINTED TO NEWSPAPER ARTICLES IN JULY 1984 ANNOUNCING HIS PROMOTION TO THE POSITION OF DEPUTY CHAIRMAN OF SHEARSON LEHMAN LEHMAN OFFICIALS AFTER DOUBLECHECKING AGREE THAT MR SHUTZER WAS INDEED ONCE NAMED A DEPUTY CHAIRMAN AND APOLOGIZE FOR QUESTIONING HIS CLAIM THEY ALSO NOTE HE HELD THE POSITION FOR LESS THAN NINE MONTHS MR SHUTZER SAID HE KEPT THE DEPUTY CHAIRMAN TITLE IN HIS BIOGRAPHY AND THAT LEHMAN OFFICIALS HAD NO OBJECTION FURTHERMORE IT'S A COMMON WALL STREET PRACTICE TO LET EXECUTIVES KEEP THEIR TITLES EVEN WHEN SOMEONE ELSE IS GIVEN THE POSITION AS FOR THE MANAGEMENT COMMITTEE CLAIM MR SHUTZER CONCEDES HE WAS ON LEHMAN'S MANAGER'S COMMITTEE WHICH IS NOT QUITE THE SAME AS THE COMMITTEE OF ABOUT 18 SENIOR LEHMAN OFFICIALS WHO RUN THE FIRM THAT'S CALLED THE OPERATING COMMITTEE LEHMAN SAYS THERE IS ALSO NO MANAGER'S COMMITTEE WHY ALL THE FUSS LEHMAN MIGHT BE A LITTLE TOUCHY THESE DAYS BECAUSE MR SHUTZER WAS ONE OF A HANDFUL OF HIGHPROFILE OR AT LEAST RELATIVELY HIGHPROFILE DEPARTURES IN RECENT WEEKS THEY'VE LOST A LOT OF PEOPLE SAYS MR SHUTZER AND MAY LOSE MORE HE'LL NEED TO DO SOME HIRING FOR FURMAN SELZ HE SAYS 9403170076 940317 TECHNOLOGY & HEALTH ANOTHER GENE FOUND TO CAUSE COLON CANCER BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL TWO TEAMS OF SCIENTISTS SAID THEY HAD FOUND ANOTHER MUTANT GENE THAT CAN CAUSE COLON CANCER THE NEWFOUND GENE COULD ACCOUNT FOR A THIRD OF THE CASES OF A TYPE OF COLON CANCER KNOWN TO BE HEREDITARY WHICH STRIKES ABOUT 23000 AMERICANS A YEAR LAST DECEMBER SOME OF THE SAME RESEARCHERS REPORTED FINDING A MUTANT GENE THAT IS THOUGHT TO CAUSE ABOUT HALF THESE HEREDITARY CANCERS KNOWN AS HEREDITARY NONPOLYPOSIS COLERECTAL CANCER OR HNPCC THE MUTANT GENES MIGHT ALSO BE INVOLVED IN 20 TO 30 OF THE MORE COMMON NONHEREDITARY COLON CANCERS THAT DEVELOP IN 125000 OTHER AMERICANS ANNUALLY THE SCIENTISTS SAID DISCOVERY OF THE GENE COULD LEAD TO A DIAGNOSTIC TEST WITHIN A YEAR AND MAY OPEN THE WAY TO NEW THERAPIES FOR COLON CANCER THE RESEARCHERS SUGGESTED ONE OF THE RESEARCH TEAMS INCLUDED SCIENTISTS AT HUMAN GENOME SCIENCES INC WHICH SAID IT HAS APPLIED FOR A PATENT ON THE COLONCANCER GENE A COMPETING PATENT APPLICATION ON THE GENE ALSO HAS BEEN FILED BY THREE UNIVERSITIES WHOSE SCIENTISTS COMPRISED THE OTHER RESEARCH TEAM HUMAN GENOME BASED IN ROCKVILLE MD IS A FLEDGLING BIOTECHNOLOGY COMPANY THAT USES A SHORTCUT TECHNIQUE FOR ISOLATING HUMAN GENES THE COMPANY ALREADY HAS BUILT UP A LIBRARY OF MORE THAN 40000 FRAGMENTS OF HUMAN DNA THAT IT KNOWS TO BE GENES OR PARTS OF GENES BRITAIN'S SMITHKLINE BEECHAM PLC HAS COMMITTED 125 MILLION OF RESEARCH FUNDS TO HUMAN GENOME FOR FIRST RIGHTS TO ITS GENE DISCOVERIES BUT DIDN'T TAKE RIGHTS TO THE COLONCANCER GENE ACCORDING TO HUMAN GENOME'S CHIEF EXECUTIVE OFFICER WILLIAM HASELTINE THE DISCOVERY OF BOTH THE FIRST AND SECOND COLONCANCER GENES WAS A TRIUMPH OF BASIC RESEARCH IN WHICH SCIENTISTS WERE ABLE TO RELATE HUMAN GENES TO GENES DISCOVERED YEARS AGO IN BACTERIA AND YEASTS LAST YEAR THE DISCOVERY OF THE FIRST GENE WAS REPORTED AT ABOUT THE SAME TIME BY TWO RESEARCH TEAMS ONE OF WHICH INCLUDED MOLECULAR BIOLOGISTS RICHARD FISHEL AT THE UNIVERSITY OF VERMONT AND RICHARD KOLODNER AT DANA FARBER CANCER INSTITUTE IN BOSTON AND THE OTHER LED BY GENETICIST BERT VOGELSTEIN AT JOHNS HOPKINS MEDICAL INSTITUTIONS THE RESEARCHERS SUSPECTED THAT THE HUMAN CANCER WAS CAUSED BY THE FAILURE OF THE COLON CELLS' ABILITY TO REPAIR SPELLING MISTAKES CALLED MISMATCHES MADE IN DNA DNA OF COURSE CARRIES THE GENETIC MESSAGE OF A CELL AND MISTAKES OFTEN ARE MADE WHEN THE DNA IS BEING COPIED SO THAT A CELL CAN DIVIDE CELLS NORMALLY HAVE A MECHANISM FOR REPAIRING THESE SPELLING MISTAKES YEARS EARLIER SCIENTISTS HAD FOUND THE GENES THAT BACTERIA AND YEAST USE TO REPAIR SUCH DNA SPELLING MISTAKES USING ONE OF THESE BACTERIAL/YEAST GENES AS MODELS THE RESERCHERS LAST YEAR WERE ABLE TO PLUCK A SIMILAR GENE OUT OF DNA OF PATIENTS WITH HNPCC THIS GENE IS A KIND OF PROOFREADING GENE IT GOES ALONG THE DNA LOOKING FOR MISTAKES EXPLAINED DR FISHEL AT THE UNIVERSITY OF VERMONT AT THE TIME THE RESEARCHERS KNEW THAT ANOTHER DEFECTIVE GENE WAS CAUSING COLON CANCER IN OTHER FAMILIES AND SUSPECTED IT ALSO WAS A DEFECTIVE DNAREPAIR GENE TO FIND THIS SECOND GENE EACH RESEARCH TEAM USED A DIFFERENT METHOD ONE APPROACH WAS REPORTED IN THIS WEEK'S ISSUE OF THE JOURNAL NATURE BY R MICHAEL LISKAY AT OREGON HEALTH SCIENCES UNIVERSITY IN PORTLAND AND HIS COLLEAGUES AT DANA FARBER YALE UNIVERSITY AND THE UNIVERSITY OF VERMONT AS THEY DID WITH THE FIRST GENE THE RESEARCHERS USED THE BACTERIAL/YEAST GENES AS MODELS FOR DEVISING DNA FRAGMENTS THAT WOULD GRAB HOLD OF SIMILAR HUMAN GENES THE FRAGMENTS WERE USED TO PINPOINT A GENE IN A FAMILY HAUNTED BY HNPCC IT TURNED OUT THAT MUTANT VERSIONS OF THE GENE WERE FOUND ONLY IN THOSE MEMBERS WITH CANCER AND NOT IN THOSE FREE OF CANCER THE OTHER RESEARCH TEAM REPORTING IN THIS WEEK'S ISSUE OF SCIENCE ALSO SUSPECTED THAT A DNAREPAIR GENE WAS INVOLVED AND THAT IT WOULD RESEMBLE THE DNAREPAIR GENES IN THE BACTERIA AND YEAST THE JOHNS HOPKINS RESEARCHERS DRS VOGELSTEIN AND KENNETH KINZLER CALLED RESEARCHERS AT HUMAN GENOME AND ASKED IF ANY OF THE COMPANY'S 40000PLUS HUMAN GENES RESEMBLED THE BACTERIAL/YEAST GENES THE COMPANY HAD ALREADY BEEN SCOURING ITS INVENTORY FOR SUCH GENES AND HAD FOUND THREE SAID DR HASELTINE OF HUMAN GENOME WITHIN A MATTER OF HOURS AFTER DR VOGELSTEIN CAME TO THE COMPANY'S ROCKVILLE LABORATORIES HE AND COMPANY SCIENTISTS DETERMINED THAT ONE OF THE GENES WAS THE ONE THE JOHNS HOPKINS TEAM WAS LOOKING FOR THE JOHNS HOPKINS RESEARCHERS WORKING WITH PHYSICIANS IN FINLAND AND CREIGHTON UNIVERSITY IN OMAHA NEB THEN CONFIRMED THAT THE MUTANT VERSION OF THE GENE WAS LINKED TO CANCER IN 10 DIFFERENT FAMILIES THAT HAD THE INHERITED COLON CANCER THIS SECOND GENE SAID DR FISHEL AT VERMONT IS A KIND OF FLAGWAVER WHEN THE FIRST PROOFREADING GENE FINDS A MISTAKE THE SECOND GENE SIGNALS THE REPAIR MECHANISM TO COME OVER AND CORRECT THE MISTAKE THE SCIENTISTS THEORIZE THAT MOST MISTAKES DURING THE COPYING OF DNA ARE OF LITTLE IMPORT IF THEY GO UNREPAIRED BUT OCCASIONALLY AN ERROR IS MADE THAT IF NOT REPAIRED CAN LEAD TO CANCER THIS WOULD EXPLAIN WHY PEOPLE WHO INHERIT EITHER OF THE DEFECTIVE DNAREPAIR GENES OFTEN DON'T GET COLON CANCER UNTIL THEY REACH MIDDLE AGE 9403170075 940317 WHAT'S NEWS WORLDWIDE THE US AND ISRAEL SOUGHT TO REVIVE THE MIDEAST PEACE PROCESS SPEAKING AFTER AN OVAL OFFICE MEETING CLINTON AND RABIN APPEALED TO PLO LEADER ARAFAT TO RETURN TO PEACE TALKS BUT DIDN'T OFFER THE SECURITY GUARANTEES THAT PALESTINIANS WANT FIRST THE ISRAELI PRIME MINISTER ALSO SAID HE HOPED TO SIGN PEACE TREATIES WITH SYRIA LEBANON AND JORDAN THIS YEAR THOUGH RABIN DIDN'T SAY WHETHER ISRAEL WOULD BE WILLING TO GIVE BACK THE GOLAN HEIGHTS HE SAID PEACE WITH SYRIA JUSTIFIED PAINFUL DECISIONS ISRAELI TROOPS SHOT AND KILLED ONE PALESTINIAN AND WOUNDED DOZENS OF OTHERS DURING SKIRMISHES IN THE OCCUPIED WEST BANK AND GAZA STRIP HIGHLEVEL TALKS LIKELY WILL BE CANCELED BETWEEN THE US AND NORTH KOREA FOLLOWING PYONGYANG'S REFUSAL TO HONOR A PLEDGE TO GRANT INTERNATIONAL INSPECTORS FULL ACCESS TO ITS DECLARED NUCLEAR SITES THE INSPECTORS WERE TRYING TO DETERMINE WHETHER NORTH KOREA IS WORKING ON A NUCLEARWEAPONS PROGRAM TWO TEAMS OF SCIENTISTS SAID THEY FOUND ANOTHER MUTANT GENE THAT CAN CAUSE COLON CANCER THE NEWLY DISCOVERED GENE COULD ACCOUNT FOR ONETHIRD OF THE CASES OF A TYPE OF HEREDITARY COLON CANCER THAT STRIKES ABOUT 23000 AMERICANS A YEAR DISCOVERY OF THE GENE MIGHT LEAD TO A DIAGNOSTIC TEST WITHIN A YEAR SERBCROAT TALKS WERE SCHEDULED FOR NEXT WEEK CONCERNING A BREAKAWAY SERB ENCLAVE THAT COMPRISES ABOUT ONETHIRD OF CROATIA RUSSIAN ENVOY CHURKIN ANNOUNCED WHILE CLASHES HAVE EBBED IN KRAJINA RECENTLY AN ACCORD ON ITS STATUS IS SEEN AS VITAL TO THE BOSNIAN PEACE PROCESS ARMED SERBS TOOK CONTROL OF THE ENCLAVE IN 1991 A NEW EXCISE TAX WAS PROPOSED BY THE CLINTON ADMINISTRATION TO COMBAT ABUSES BY TAXEXEMPT PUBLIC CHARITIES THE PROPOSAL WHICH IS SUPPORTED BY LAWMAKERS OF BOTH PARTIES WOULD AFFECT INSIDERS SUCH AS OFFICERS AND DIRECTORS WHO RECEIVE WHAT THE IRS WOULD CONSIDER EXCESSIVE COMPENSATION THE BENEFITS OF AZT MAY BE OUTWEIGHED BY THE DISADVANTAGES OF ITS SEVERE SIDE EFFECTS CASTING DOUBT ON THE AIDS DRUG'S VALUE HARVARD RESEARCHERS CONCLUDED THEIR REPORT QUESTIONS THE ROUTINE EARLY USE OF AZT FOR HIVINFECTED PEOPLE WHO HAVEN'T YET BECOME SICK AZT CAN CAUSE PROLONGED NAUSEA VOMITING AND FATIGUE BLACKS ARE LESS LIKELY THAN WHITES TO RECEIVE THE DRUG THERAPY THEY NEED FOR EFFECTIVE TREATMENT OF AIDS AND ITS RELATED ILLNESSES ACCORDING TO A STUDY OF PATIENTS AT AIDS CLINICS IN BALTIMORE THE HARVARD AND BALTIMORE STUDIES BOTH APPEAR IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE KIDNAPPERS REPORTEDLY CONTACTED THE FAMILY OF A MEXICAN BILLIONAIRE THEY SEIZED AT GUNPOINT EARLY MONDAY NO RANSOM DEMAND HAS YET BEEN MADE FOR ALFREDO HARP HELU THE 50YEAROLD PRESIDENT OF GRUPO FINANCIERO BANAMEXACCIVAL ACCORDING TO SOURCES CLOSE TO THE CASE RUSSIA EXPECTS TO REACH AN AGREEMENT WITH THE IMF THIS WEEK ON AN ECONOMIC REFORM PROGRAM AND A 15 BILLION LOAN ACCORDING TO MOSCOW'S REPRESENTATIVE AT THE LENDING AGENCY HE SAID THE TWO SIDES SHOULD CONCLUDE THE PACT DURING WEEKEND TALKS MANDELA BEGAN A CAMPAIGN VISIT IN NATAL PROVINCE CHARGING THAT PEOPLE IN HIGH PLACES WERE ORGANIZING HIT SQUADS TO DISRUPT SOUTH AFRICA'S FIRST ALLRACE ELECTIONS A SPOKESMAN FOR THE RIVAL INKATHA PARTY CRITICIZED THE AFRICAN NATIONAL CONGRESS LEADER'S VISIT SAYING IT COULD SET OFF FURTHER VIOLENCE A CHOLERA EPIDEMIC HAS KILLED OVER 100 PEOPLE IN SOMALIA AND THE TOLL IS RISING UN OFFICIALS ARE CONCERNED THAT EFFORTS TO CONTROL THE DISEASE COULD BE JEOPARDIZED BY THE PULLOUT OF PEACEKEEPERS CHOLERA WAS FIRST DETECTED LAST MONTH IN A NORTHERN PORT IRAQ ISSUED A NEW DEMAND FOR THE END OF UNIMPOSED GULF WAR SANCTIONS WARNING THAT IF THE ECONOMIC BLOCKADE CONTINUES BAGHDAD WOULD HAVE TO ACT IN A MANNER THAT PROTECTS ITS PEOPLE AGAINST FURTHER SUFFERING THE UN HAS BARRED IRAQ'S SALE OF OIL SINCE ITS AUGUST 1990 INVASION OF KUWAIT TONYA HARDING PLEADED GUILTY TO A CONSPIRACY CHARGE IN THE ATTACK ON SKATER NANCY KERRIGAN AND RESIGNED FROM THE US FIGURE SKATING ASSOCIATION AS PART OF A PLEA BARGAIN HARDING WAS FINED 100000 AND AGREED TO THREE YEARS' SUPERVISED PROBATION 9403170074 940317 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CITICORP 200 MILLION OF SUBORDINATED NOTES DUE MARCH 15 2004 PRICED AS 7125S AT 99195 TO YIELD 724 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 83 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL EXPRESS 1994 PASSTHROUGH TRUSTS 377 MILLION OF PASSTHROUGH CERTIFICATES SOLD IN THREE PARTS THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART 125 MILLION OF PASSTHROUGH CERTIFICATES DUE SEPT 23 2006 WAS PRICED AT PAR TO YIELD 753 THE DEBT HAS A SEVENYEAR AVERAGE LIFE THE ISSUE WAS PRICED AT A SPREAD OF 135 BASIS POINTS ABOVE THE 775 TREASURY MATURING IN 2001 THE SECOND TRANCHE 175 MILLION OF PASSTHROUGH CERTIFICATES MATURING SEPT 23 2008 WAS PRICED AT PAR TO YIELD 789 THE DEBT HAS A 10YEAR AVERAGE LIFE THE ISSUE WAS PRICED AT A SPREAD OF 149 BASIS POINTS ABOVE 10YEAR TREASURYS THE THIRD PART 77 MILLION OF PASSTHROUGH CERTIFICATES MATURING MARCH 23 2010 WAS PRICED AT PAR TO YIELD 84 THE DEBT HAS A 15YEAR AVERAGE LIFE THE ISSUE WAS PRICED AT A SPREAD OF 200 BASIS POINTS ABOVE 10YEAR TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P ALL THREE TRANCHES ARE NONCALLABLE THE ISSUER IS AN INDEPENDENT FACILITY FROM WHICH FEDERAL EXPRESS CORP LEASES AIRPLANES FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF NOTES DUE MARCH 23 1999 PRICED INITIALLY AT PAR TO YIELD 619 ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 31 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FORD MOTOR CREDIT CO 500 MILLION OF NOTES DUE MARCH 3 1997 PRICED AS 5625S AT 99675 TO YIELD 5748 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 42 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO PENNSYLVANIA POWER & LIGHT CO 250 MILLION OF DEBT PRICED IN TWO PARTS THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 150 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 1 2004 WAS PRICED AS 6875S AT 99391 TO YIELD 696 THE NOTES WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE TREASURYS GROSS SPREAD IS 650 SELLING CONCESSION IS 4 AND REALLOWANCE IS 250 THE SECOND TRANCHE 100 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 1 2014 WAS PRICED AS 7375S AT 9922 TO YIELD 745 THEY WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE TREASURYS GROSS SPREAD IS 875 SELLING CONCESSION IS 5 AND REALLOWANCE IS 250 BOTH PARTS ARE NONCALLABLE AND RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P APPLIED MATERIALS INC TWO MILLION COMMON SHARES PRICED AT 5025 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC COPART INC INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 12 APIECE THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO AND GENESIS MERCHANT GROUP SECURITIES PENNSYLVANIA POWER & LIGHT CO 80 MILLION OF CUMULATIVE PREFERRED STOCK AT 100 A SHARE IN THREE PARTS THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC THE UTILITY SOLD 300000 SHARES MATURING APRIL 1 2001 AT PAR FOR A 595 DIVIDEND YIELD IT PRICED 250000 SHARES MATURING APRIL 1 2002 AT PAR FOR A 605 DIVIDEND YIELD IT ALSO SOLD 250000 SHARES MATURING ON APRIL 1 2003 AT PAR FOR A 615 DIVIDEND YIELD THE PREFERRED IS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P TEXAS REGIONAL BANCSHARES INC INITIAL OFFERING OF 12 MILLION CLASS A COMMON SHARES PRICED AT 12 APIECE THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS CO STORAGE USA INC INITIAL OFFERING OF 55 MILLION COMMON SHARES PRICED AT 2175 APIECE THROUGH UNDERWRITERS LED BY MORGAN KEEGAN & CO NEW YORK CITY MUNICIPAL WATER FINANCE AUTHORITY 250 MILLION BOND ANTICIPATION NOTES LARGELY WON BY A JP MORGAN SECURITIES INC GROUP THE 1994 SERIES A WATER AND SEWERSYSTEM NOTES ARE DUE DEC JP MORGAN WON 100 MILLION OF THE NOTES WITH A BID SETTING THE NET INTEREST COST AT 2848 AND 50 MILLION WITH A NETINTERESTCOST BID OF 2886 THE NOTES ARE 375S PRICED TO YIELD 28 AT THEIR MATURITY SMITH BARNEY SHEARSON WON 50 MILLION WITH NETINTERESTCOST BIDS OF 2869 AND 282 THOSE NOTES ARE ALSO 375S PRICED TO YIELD 28 THE REMAINING 50 MILLION WERE APPARENTLY WON BY LEHMAN BROTHERS INC MOODY'S HAS RATED THE NOTES MIG1 AND S&P HAS ASSIGNED AN SP1 RATING PENNSYLVANIA 4911 MILLION FIRST SERIES OF 1994 IMPROVEMENT UNLIMITEDTAX BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 53623 YIELDS FOR REOFFERED BONDS RANGE FROM 305 IN 1995 TO 575 IN 2013 AND 2014 BONDS DUE IN 200709 ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THE BALANCE OF THE BONDS HAVE A SINGLEA1 RATING FROM MOODY'S AND A DOUBLEAMINUS RATING FROM S&P WISCONSIN 1659 MILLION 1994 GENERAL OBLIGATION REFUNDING BONDS PRICED BY A MERRILL LYNCH & CO GROUP INCLUDED IN THE ISSUE ARE SERIES 1 BONDS WHICH ARE PRICED TO YIELD FROM 34 IN 1995 TO 5 IN 2002 YIELDS FOR THE SERIES 2 BONDS RANGE FROM 49 IN 1999 TO 6125 IN 2024 BOTH MOODY'S AND S&P ARE EXPECTED TO RATE THE BONDS DOUBLEA FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT MORTGAGE SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES G030 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8 AND WEIGHTED AVERAGE MATURITY OF 351 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1717 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 490 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 199465 IS BACKED BY THE AGENCY'S STRIPS TRUST 259 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 199467 IS BACKED BY THE AGENCY'S 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE MATURITY OF 175 MONTHS ITT FLOORPLAN RECEIVABLES MASTER TRUST 19941 1 BILLION OF FLOATINGRATE ASSETBACKED CERTIFICATES PRICED AT 99954726 TO YIELD 37725 INITIALLY THE CERTIFICATES WILL FLOAT 20 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE THE COLLATERAL INCLUDES FLOORPLAN RECEIVABLES ACCOUNTS RECEIVABLE ASSETBASED LENDING RECEIVABLES AND UNSECURED LOANS THAT ARE PROVIDED TO DEALERS TO FINANCE THEIR CONSUMER AND COMMERCIAL PRODUCT INVENTORY OR TO MANUFACTURERS AND DISTRIBUTORS TO FINANCE INVENTORY FINISHED PARTS OR OTHER ASSETS THE DEBT HAS A WEIGHTED AVERAGE LIFE OF 489 YEARS IT HAS AN EXPECTED FINAL MATURITY OF FEBRUARY 1999 AND A LEGAL FINAL MATURITY OF FEBRUARY 2001 MOODY'S S&P AND FITCH INVESTORS SERVICE INC ALL RATED THE SECURITIES TRIPLEA CREDIT ENHANCEMENT INCLUDES A 9 SUBORDINATED SELLERS INTEREST AND A 25BASISPOINT RESERVE FUND BANK NEDERLANDSE GEMENTEEN NV NETHERLANDS 150 MILLION CANADIAN DOLLARS OF 65 EUROBONDS DUE APRIL 11 1997 AT ISSUE PRICE 101035 VIA ABN AMRO BANK NV REOFFERED AT 9986 TO YIELD 655 A SPREAD OF 46 BASIS POINTS ABOVE CANADIAN GOVERNMENT BOND OF AUGUST 1996 FEES 1375 EUROPEAN INVESTMENT BANK SUPRANATIONAL 15 BILLION PORTUGUESE ESCUDOS OF FLOATINGRATE NOTES DUE MARCH 30 1999 AT ISSUE AND REOFFER PRICE PAR VIA BANCO PORTUGUES DE INVESTIMENTO SA AND CAIXA GERAL DE DEPOSITOS PAYABLE SEMIANNUALLY AT SIXMONTH LISBON INTERBANK OFFERED RATE MINUS 275 BASIS POINTS FEES 015 POINT LESS 005 POINT FOR LEAD MANAGERS GM PFAFF BV NETHERLANDS GERMAN PARENT 85 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 25 DUALCURRENCY NOTES REPAYABLE IN MARKS DUE APRIL 14 2004 AT PAR VIA BANKERS TRUST AG NOTES CONVERTIBLE INTO COMMON SHARES OF GM PFAFF AT 10 PREMIUM TERMS TO BE FIXED FRIDAY FEES 2375 HYDROQUEBEC CANADA 500 MILLION OF FLOATINGRATE EURONOTES DUE APRIL 1999 AT ISSUE AND REOFFER PRICE 9918 VIA CS FIRST BOSTON LTD PAYABLE QUARTERLY FLAT AT THREEMONTH DOLLAR LIBOR GUARANTOR PROVINCE OF QUEBEC FEES 015 INI FINANCE BV SPANISH PARENT 150 MILLION OF FLOATINGRATE EURONOTES DUE APRIL 1999 AT ISSUE AND REOFFER PRICE 998 VIA MERRILL LYNCH INTERNATIONAL LTD PAYABLE QUARTERLY AT 00625 POINT BELOW THREEMONTH DOLLAR LIBOR GUARANTOR INSTITUTO NACIONAL DE INDUSTRIA IN TURN GUARANTEED BY SPAIN FEES 015 MITSUBISHI CORP FINANCE PLC JAPANESE PARENT 10 BILLION YEN OF STEPUP COUPON EUROBONDS DUE JUNE 27 1997 AT ISSUE PRICE PAR VIA IBJ INTERNATIONAL PLC COUPON 3 UNTIL JUNE 27 1996 STEPPING UP TO 38 FOR LAST YEAR FEES UNDISCLOSED MITSUBISHI OIL CO JAPAN 250 MILLION OF 125 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE APRIL 7 1998 AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD WARRANTS EXERCISABLE FROM APRIL 21 TO MARCH 31 1998 TO PURCHASE COMPANY SHARES AT 25 INDICATED PREMIUM TERMS TO BE FIXED MARCH 24 FEES 225 POINTS LESS 02 POINT FOR LEAD MANAGER PHILIPS GLOEILAMPENFABRIEKEN NV NETHRERLANDS ONE BILLION FRENCH FRANCS OF 6875 EUROBONDS DUE APRIL 18 2002 AT ISSUE PRICE 101025 VIA CREDIT COMMERCIAL DE FRANCE REOFFERED AT 9955 TO YIELD 695 A MARGIN OF 85 BASIS POINTS OVER COMPARABLE FRENCH TREASURY FEES 1875 ROBINSON DEPARTMENT STORE PUBLIC CO THAILAND 40 MILLION OF CONVERTIBLE EUROBONDS DUE APRIL 7 2004 AT ISSUE PRICE PAR VIA ROBERT FLEMING & CO INDICATED COUPON 425 TO 45 BONDS CONVERTIBLE INTO ORDINARY COMPANY SHARES FROM JULY 7 TO MARCH 1 2004 AT INDICATED PREMIUM 10 TO 12 PUT OPTION EXERCISABLE IN YEAR FIVE AT PRICE TO YIELD APPROXIMATELY 85 AFTER YEAR THREE BONDS CALLABLE AT ACCRETED VALUE TO YEAR FIVE AND AT PAR THEREAFTER PROVIDED SHARE PRICE EXCEEDS 140 OF CONVERSION PRICE FEES UNDISCLOSED SUDWESTDEUTSCHE LANDESBANK CAPITAL MARKETS PLC GERMANY 100 MILLION SWISS FRANCS OF 425 PUBLIC BONDS DUE APRIL 13 1999 PRICED AT 10225 VIA LEHMAN BROTHERS FINANCE SA FEES 2 WORLD BANK SUPRANATIONAL 15 BILLION GREEK DRACHMAS OF 155 BONDS DUE APRIL 14 1997 AT ISSUE PRICE 100875 VIA MIDLAND BANK ATHENS BONDS YIELD 1572 AFTER DEDUCTING 1375 FULL FEES