WASHINGTON THE PRICES CONSUMERS PAID FOR GOODS AND SERVICES INCREASED 03 IN FEBRUARY THE LABOR DEPARTMENT SAID A RELATIVELY LOW RATE BUT ENOUGH TO MAKE SOME ECONOMISTS SEARCH FOR HINTS OF INFLATION A SEPARATE REPORT FROM THE COMMERCE DEPARTMENT SAID THAT HOUSING STARTS LAST MONTH CLIMBED 41 AFTER PLUMMETING 22 IN JANUARY CONSUMER PRICES HAD BEEN UNCHANGED IN JANUARY THE CORE INFLATION RATE WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY NUMBERS WAS ALSO UP 03 AFTER A MORE MODERATE 01 RISE THE MONTH BEFORE THE INCREASE WAS FUELED BY AN INCREASE IN HOUSING COSTS A MAJOR COMPONENT IN THE INDEX BUT ONE THAT SOMETIMES JUMPS AROUND UP ONE MONTH DOWN THE NEXT EXCLUDING HOUSING PRICES INCREASED ONLY 01 IN FEBRUARY DONALD RATAJCZAK CHIEF OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY FOUND THE REPORT SLIGHTLY DISTURBING RENTS INCREASED LAST MONTH HE NOTED BECAUSE FEW APARTMENTS HAVE BEEN BUILT IN THE PAST FEW YEARS NEW CAR AND FINANCING PRICES ARE UP BECAUSE OF STRONG DEMAND THESE ARE THE BEGINNINGS OF CREEPING INFLATION DR RATAJCZAK CONCLUDED BUT GORDON RICHARDS AN ECONOMIST WITH THE NATIONAL ASSOCIATION OF MANUFACTURERS SAID FEARS OF RISING INFLATION HAVE ESCALATED TO THE LEVEL OF PARANOIA THESE FEARS ARE GROUNDLESS HE SAID THAT SOFT LABOR MARKETS WILL KEEP WAGES LOW AND ECONOMIC MALAISE IN EUROPE AND JAPAN IS KEEPING PRICES OF EXPORTS AND IMPORTS FLAT DESPITE THEIR DIFFERENCES OVER JANUARY'S FIGURES MOST ECONOMISTS AGREE THAT WORRIES OF RAMPANT INFLATION ARE MISGUIDED MOST OF THOSE WHO PREDICT INFLATION LOOK FOR ONLY SLIGHT PRICE INCREASES WALL STREET ANALYSTS SAID THIS WEEK'S REPORTS ON CONSUMER AND PRODUCER PRICES WILL EASE THE PRESSURE ON THE FEDERAL RESERVE TO INCREASE SHORTTERM INTEREST RATES WHEN FED POLICY MAKERS MEET NEXT WEEK BUT THE FED IS LIKELY TO BOOST SHORTTERM RATES IN COMING MONTHS AND IS NOW CONFRONTING A TACTICAL ISSUE OF HOW TO DO THAT WITHOUT PROVOKING ANOTHER RUNUP IN LONGTERM INTEREST RATES IN THE BOND MARKET WHILE THERE IS LITTLE VISIBLE EVIDENCE OF AN INFLATION UPTURN THE EARLY WARNING SIGNALS RISING CAPACITY USE FALLING UNEMPLOYMENT RATES RISING COMMODITY PRICES SUPPORT THE NEED FOR THE FED TO STAY AHEAD OF THE CURVE ECONOMISTS AT UBS SECURITIES IN NEW YORK SAID THEY PREDICT THAT IN APRIL OR MAY THE FED WILL MOVE UP THE FEDERALFUNDS INTEREST RATE AT WHICH BANKS LEND TO EACH OTHER OVERNIGHT TO 35 FROM THE CURRENT 325 SEPARATELY THE COMMERCE DEPARTMENT SAID HOUSING STARTS CLIMBED TO AN ANNUAL RATE OF 1309000 LAST MONTH FROM JANUARY'S REVISED 1258000 RATE THIS COMES ON THE HEELS OF JANUARY'S 22 PLUMMET FROM DECEMBER'S REVISED RECORD OF 1612000 ECONOMISTS SAY THEY BELIEVE WINTER STORMS CHECKED HOUSING STARTS IN THE FIRST TWO MONTHS OF THIS YEAR BUILDING PERMITS OFTEN CONSIDERED AN INDICATOR OF CONSTRUCTION WERE DOWN 81 IN FEBRUARY TO AN ANNUAL RATE OF 1251000 BUT DAVID SEIDERS CHIEF ECONOMIST OF THE NATIONAL ASSOCIATION OF HOME BUILDERS ARGUED THAT SOMETIMES PERMITS DON'T REFLECT FUTURE CONSTRUCTION A BACKLOG OF UNUSED PERMITS HAS BEEN BUILDING UP BECAUSE THE BAD WEATHER HAS KEPT BUILDERS FROM USING PERMITS FOR STARTS REGIONALLY IN THE NORTHEAST WHICH HAS BORN THE BRUNT OF THIS WINTER'S COLD STARTS WERE STRONGEST SHOOTING UP 51 THEY WERE UP IN THE SOUTH AND DOWN IN THE MIDWEST AND WEST WHERE BUILDERS HAVE FOCUSED ON REPAIRING EXISTING HOUSES DAMAGED IN THE FLOODS OR EARTHQUAKE ALL NUMBERS ARE ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE PRICE INDEXES 19821984=100 AND PERCENTAGE CHANGE FOR THE COMPONENTS OF THE LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS FOR FEBRUARY THE PERCENTAGE CHANGES FROM THE PREVIOUS MONTH ARE SEASONALLY ADJUSTED FEBRUARY CONSUMER PRICE INDEXES 19821984 EQUALS 100 UNADJUSTED FOR SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM FEBRUARY 1993 WERE 9403170072 940317 TECHNOLOGY & HEALTH KENDALL SQUARE SETTLES SUIT BY HOLDERS PAVING WAY FOR INFUSION OF 25 MILLION BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL KENDALL SQUARE RESEARCH CORP AGREED TO SETTLE SHAREHOLDER LITIGATION THAT THREATENED ITS SURVIVAL CLEARING THE WAY FOR A 25 MILLION CAPITAL INFUSION FROM ITS BIGGEST HOLDER THE SETTLEMENT TERMS AND NEW INVESTMENT FROM INDUSTRIALIST WILLIAM KOCH AMOUNT TO A NEW LEASE ON LIFE FOR KENDALL A SUPERCOMPUTER MAKER WHICH HAS BEEN ROCKED BY AN ACCOUNTING SCANDAL THAT RESULTED IN HUGE CHARGES AND THE OUSTER OF TOP MANAGEMENT WITH ONLY 4 MILLION IN CASH RESERVES HUGE POTENTIAL LIABILITIES IN THE LITIGATION AND PRODUCT DEVELOPMENT COSTS KENDALL WAS BADLY IN NEED OF NEW CAPITAL BUT MR KOCH ONE OF THE COMPANY'S ORIGINAL BANKROLLERS HAD SAID HE WOULDN'T ADD TO HIS INVESTMENT WITHOUT A SETTLEMENT HIS NEW INVESTMENT WILL BRING HIS STAKE TO A FULLY DILUTED 47 FROM 25 THE WALTHAM MASSBASED COMPANY ANNOUNCED LAST FALL THAT IT HAD COUNTED AS SALES NUMEROUS COMPUTERS THAT CUSTOMERS DIDN'T HAVE ANY PROSPECTS OF PAYING FOR IT FIRED ITS FOUNDER AND CHIEF EXECUTIVE AND SAID IT WOULD HAVE TO RESTATE DOWNWARD PAST RESULTS AND REPORT LARGE LOSSES INSTEAD OF SMALL PROFITS FOR 1993 MR KOCH ALSO A YACHTSMEN WHO FUNDED THE LAST AMERICA'S CUP WINNER HAS TAKEN OVER AS CHAIRMAN AND CHIEF EXECUTIVE AND REVAMPED MANAGEMENT WHILE TRYING TO SETTLE THE SUITS IN OVERTHECOUNTER TRADING KENDALL SQUARE STOCK GAINED 625 CENTS TO CLOSE AT 59375 KENDALL SQUARE SAID PLAINTIFFS IN THE SUIT WILL RECEIVE 535 MILLION IN CASH 35 MILLION SHARES OF KENDALL COMMON STOCK AND WARRANTS TO BUY AN ADDITIONAL 15 MILLION SHARES OF COMMON AT 450 A SHARE OF THE CASH THE COMPANY WILL PAY 36 MILLION KENDALL SAID THE REST WILL BE PAID BY INDIVIDUALS INCLUDING HENRY BURKHARDT THE FIRED FOUNDER AND THE THREE FIRMS THAT LED THE UNDERWRITING OF A KENDALL SQUARE SECONDARY OFFERING IN 1993 ALEX BROWN & SONS BEAR STEARNS & CO AND SALOMON BROTHERS INC SHAREHOLDER LITIGATION AGAINST KENDALL SQUARE'S AUDITOR PRICE WATERHOUSE & CO CONTINUES PLAINTIFFS NEVER PUBLICLY SPECIFIED DAMAGE CLAIMS BUT MR KOCH SAID THEY WERE AROUND 150 MILLION GLEN DEVALERIO ONE OF THE PLAINTIFFS' ATTORNEYS VALUED THE TOTAL SETTLEMENT AT IN EXCESS OF 20 MILLION MR KOCH WILL INVEST 25 MILLION IN A NEW CONVERTIBLE PREFERRED STOCK PART OF WHICH WOULD BE USED TO REPAY A BRIDGE LOAN OF UP TO 15 MILLION THAT HE WILL MAKE TO KENDALL SQUARE UNTIL THE SETTLEMENT IS APPROVED BY THE COURTS THE BRIDGE NOTE WILL INCLUDE DETACHABLE WARRANTS TO BUY UP TO FOUR MILLION SHARES OF COMMON AT PRICES RANGING FROM 450 TO 750 BESIDES MR KOCH THREE VENTURE CAPITAL FIRMS WILL BUY AN ADDITIONAL 3 MILLION OF THE NEW CONVERTIBLE PREFERRED AND MAY BUY SOME OF THE BRIDGE NOTES AND WARRANTS AS WELL MR KOCH SAID THAT ON A FULLY DILUTED BASIS ASSUMING CONVERSION OF WARRANTS AND PREFERRED STOCK HIS STAKE WILL EXPAND TO 161 OF 342 MILLION FULLY DILUTED SHARES OUTSTANDING AFTER THE NEW INVESTMENT HE CURRENTLY HOLDS 41 MILLION OF 161 MILLION SHARES OUTSTANDING ALTHOUGH THE SETTLEMENT AND INVESTMENT REDUCE THE THREATS TO KENDALL NOW THEY HAVE THE NORMAL CHALLENGE OF SELLING IN AN INCREDIBLY COMPETITIVE ENVIRONMENT SAID JEFFRY CANIN AN ANALYST WITH SALOMON BROTHERS A NUMBER OF SMALL SUPERCOMPUTER COMPANIES HAVE BEEN STRUGGLING TO REACH PROFITABILITY AND IN RECENT MONTHS BIG FIRMS LIKE INTERNATIONAL BUSINESS MACHINES CORP AND HEWLETTPACKARD CO HAVE ENTERED THE MARKET MR KOCH SAID THE COMPANY WILL REPORT RESULTS FOR 1993 AND RESTATED RESULTS FOR PREVIOUS QUARTERS ON MARCH 24 HE SAID THE SALES WE REPORT WILL BE SIGNIFICANTLY WORSE THAN THE ESTIMATES MADE IN DECEMBER THAT IT HAD SOLD 104 MILLION OF COMPUTERS IN THE FIRST NINE MONTHS OF 1993 THAT FIGURE WAS DOWN FROM THE ORIGINAL CLAIM THAT IT HAD SOLD 247 MILLION IN THE NINE MONTHS 9403170071 940317 TECHNOLOGY & HEALTH US SURGICAL LAYS OFF MORE WORKERS EXPECTS TO BE PROFITABLE BY 2ND QUARTER BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL US SURGICAL CORP SAID THAT IT IS LAYING OFF 900 MORE WORKERS AS PART OF A RESTRUCTURING AND THAT IT EXPECTS TO RETURN TO PROFITABILITY BY THE SECOND QUARTER LEON HIRSCH CHAIRMAN OF THE NORWALK CONN MAKER OF SURGICAL EQUIPMENT SAID THAT THE COMPANY EXPECTS TO POST A LOSS FOR THE CURRENT QUARTER IN WHAT WOULD BE ITS FOURTH CONSECUTIVE QUARTERLY LOSS BUT THAT THE AMOUNT WILL NARROW CONSIDERABLY FROM THE LOSS OF 26 CENTS A SHARE IT HAD IN THE FOURTH QUARTER BEFORE A RESTRUCTURING CHARGE THE COMPANY HASN'T REPORTED ITS FOURTHQUARTER RESULTS THE NEWS SPARKED A RUNUP OF 225 A SHARE OR NEARLY 14 IN US SURGICAL SHARES WHICH CLOSED AT 18375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BUT SOME ANALYSTS SAID PROSPECTS FOR THE COMPANY'S LONGTERM GROWTH REMAIN CLOUDED BY CONDITIONS IN THE MARKET FOR PRODUCTS USED IN MINIMALLY INVASIVE SURGICAL PROCEDURES ALL THIS RESTRUCTURING AND FINANCIAL MANEUVERING LOOKS LIKE IT'S MOVING IN A POSITIVE DIRECTION SAID KURT KRUGER ANALYST WITH HAMBRECHT & QUIST BUT THERE DOESN'T SEEM TO BE A MARKET OR INDUSTRY TURN AHEAD THAT WILL LEAD TO SIGNIFICANT SALES GROWTH IN THE FORESEEABLE FUTURE MR HIRSCH ALSO SAID THE COMPANY IS CLOSE TO A DECISION ON HOW TO RAISE ADDITIONAL CAPITAL HE WOULDN'T ELABORATE THE COMPANY ANNOUNCED A MONTH AGO THAT IT HAD RETAINED INVESTMENT BANKERS TO SEEK EQUITY INVESTORS AND THAT IT WAS RENEGOTIATING LOAN AGREEMENTS WITH ITS LENDERS THE COMPANY SAID IT CONTINUES TO OPERATE UNDER WAIVERS FROM ITS INSURANCE COMPANY LEASEHOLDERS AND THAT IT ISN'T IN DEFAULT ON ANY OF ITS BANK AGREEMENTS THE ADDITIONAL LAYOFFS WHICH WILL BE COMPLETED BY APRIL 1 MEAN THAT THE COMPANY HAS SLASHED ITS WORK FORCE BY 1600 OR NEARLY 20 TO 6600 SINCE LAST FALL MR HIRSCH SAID MR HIRSCH ALSO SAID HIGH LEVELS OF INVENTORIES AT BOTH HOSPITALS AND DISTRIBUTORS THAT HAVE PLAGUED THE COMPANY FOR THE PAST YEAR SHOULD BE AT ROCKBOTTOM LEVELS BY JUNE 1 AND THAT NEW ORDERS FROM HOSPITALS AFTER THAT WILL RESULT IN ORDERS TO THE COMPANY RATHER THAN DRAWING DOWN DISTRIBUTOR STOCK MR HIRSCH HAS MADE SIMILAR OPTIMISTIC PROJECTIONS BEFORE ABOUT INVENTORY LEVELS BUT HE SAID THE COMPANY HAS A VERY GOOD HANDLE ON THE PROBLEM NOW IN PART WITH THE HELP OF COMPANY COMPUTERS THAT ARE INTEGRATED WITH COMPUTERS AT DISTRIBUTORS THAT TRACK INVENTORIES THE COMPANY ALSO SAID THAT BRUCE S LUSTMAN US SURGICAL'S 46YEAROLD CHIEF OPERATING OFFICER IS RETIRING EFFECTIVE APRIL 1 BUT HE WILL REMAIN ON THE BOARD MR LUSTMAN WHO HAS BEEN WITH THE COMPANY FOR 19 YEARS SAID HE PLANS TO PURSUE HIS HOBBY OF SPORTSCAR RACING PERFORM CHARITABLE WORK AND SPEND TIME WITH HIS FAMILY EIGHT OTHER CORPORATE OFFICERS ARE ALSO RETIRING EFFECTIVE APRIL 1 9403170070 940317 WHO'S NEWS CITICORP MOVES BAILEY FROM US BANKING TO GLOBAL DIVISION NEW YORK CITICORP REASSIGNED THE HEAD OF ITS HUGE US CONSUMER BANKING OPERATIONS TO RUN GLOBAL TRANSACTIONS SERVICES JAMES L BAILEY EXECUTIVE VICE PRESIDENT HAD OVERSEEN BOTH CREDIT CARDS AND BRANCH BANKING IN THE US WHICH TOGETHER CONTRIBUTED 66 BILLION IN ANNUAL REVENUE HE WILL BE OVERSEEING A PAREDDOWN TRANSACTIONSERVICES GROUP WHICH IS RESPONSIBLE FOR CASH MANAGEMENT SECURITIES SERVICES AND TRADE PRODUCTS FOR INSTITUTIONAL CUSTOMERS WORLDWIDE LAST YEAR THAT AREA HAD REVENUE OF 18 BILLION HOWEVER TWO PIECES OF THE GROUP ARE BEING SPLIT OFF AND OVERSEEN BY OTHER EXECUTIVES WHILE COMPANY'S CITIBANK UNIT HAD BROUGHT TOGETHER UNDER MR BAILEY BOTH BRANCH BANKING AND CREDIT CARDS IN THE US THOSE BUSINESSES ARE ONCE AGAIN BEING SPLIT UP ROBERTA ARENA FORMERLY THE HEAD OF EUROPEAN CREDIT CARDS WILL OVERSEE CREDIT CARDS IN BOTH EUROPE AND THE US AND VICTOR MENEZES CURRENTLY HEAD OF EUROPEAN CONSUMER BANKING WILL OVERSEE BRANCH BANKING IN BOTH THE US AND EUROPE MS ARENA IS EXPECTED TO BE NAMED TO THE BANKING COMPANY'S SOCALLED GROUP OF 15 EXECUTIVE COMMITTEE WHICH WOULD MAKE HER THE ONLY WOMAN ON THE SENIOR POLICYMAKING BODY MR MENEZES ALREADY SITS ON THE GROUP A SPOKESMAN DECLINED COMMENT ONE EXECUTIVE MAINTAINED IT WAS NOT A DEMOTION FOR MR BAILEY BECAUSE HE WAS BEING ASKED TO IMPROVE THE EFFICIENCY OF THE BUSINESS AND OTHERS POINT OUT THAT MR BAILEY HAS BEEN IN THE US AND IN CONSUMER BANKING FOR MUCH OF HIS CAREER AND WILL NOW RECEIVE OVERSEAS AND CORPORATE RESPONSIBILITIES AS WELL ALAN WEBER WHO HAD BEEN HEAD OF THE FORMER FINANCIAL INSTITUTIONS AND TRANSACTIONSSERVICES GROUP WILL BECOME HEAD OF CONSUMER BANKING IN LATIN AMERICA THE APPOINTMENTS ARE EFFECTIVE APRIL 1 9403170069 940309 REVIEW & OUTLOOK EDITORIAL THE FISKE COVERUP INDEPENDENT COUNSEL ROBERT FISKE IS A DISTINGUISHED MEMBER OF THE NEW YORK BAR AND HE IS ONLY DOING WHAT ANY GOOD LAWYER WOULD DO BUT WHEN THIS APPROACH IS APPLIED TO BROAD PUBLIC POLICY CONCERNS AS DISTINGUISHED NEW YORK ATTORNEY BERNARD NUSSBAUM FOUND IT CAN PRODUCE PREPOSTEROUS RESULTS SO IN PREPARATION FOR MR FISKE'S MEETING THIS MORNING TO URGE SENATOR D'AMATO AND THE REST OF CONGRESS TO SHUT UP AND GET OUT OF THE WAY WE'D LIKE TO OFFER AN UPDATE ON DOW JONES V DEPARTMENT OF JUSTICE AS MOST READERS KNOW WE'VE FILED SUIT UNDER THE FREEDOM OF INFORMATION ACT FOR THE RELEASE OF REPORTS ON THE DEATH OF VINCENT FOSTER THE JUSTICE DEPARTMENT'S REPLY CONSISTS OF A LETTER FROM MR FISKE SAYING THE REPORTS SHOULD NOT BE RELEASED BECAUSE IT WOULD COMPROMISE HIS INVESTIGATION AT THE TIME MR FISKE WAS APPOINTED WE'D ALREADY BEEN WAITING FOR THESE REPORTS FOR FIVE MONTHS WE FILED OUR ORIGINAL FOIA REQUEST BACK IN AUGUST BECAUSE WE THOUGHT THAT'S WHAT THE JUSTICE DEPARTMENT WAS ASKING US TO DO AS SOON AS THE FOIA SECTION PROCESSES THE REPORT IT'LL BE AVAILABLE TO YOU THAT HAS ALREADY STARTED BEFORE THIS MEETING EVEN TOOK PLACE SPOKESMAN CARL STERN TOLD THE PRESS SO WE FILED THE REQUEST AND LET THE PROCESS PROCEED AS IT PROCEEDED MR FOSTER'S DEATH WAS WIDELY BLAMED ON US BECAUSE PRIOR TO HIS DEATH WE WERE THE ONLY PEOPLE SUGGESTING THERE MIGHT BE AN ISSUE CONCERNING ETHICS AMONG FORMER MEMBERS OF THE ROSE LAW FIRM MICHAEL KINSLEY CAST THE FIRST STONE AS IS HIS WONT AND THE BLAMELAYING REACHED A CRESCENDO WITH THE HEADLINE ON JONATHAN ALTER'S NEWSWEEK COLUMN JOURNALISM AS A BLOOD SPORT WE NEVER VIEWED THIS THEME AS AN ACCIDENT JOHN HANCHETTE NATIONAL CORRESPONDENT FOR THE GANNETT NEWS SERVICE RECENTLY CONFIRMED OUR SUSPICIONS TELLING PETER BRONSON OF THE CINCINNATI INQUIRER REPORTERS GOT UNSOLICITED CALLS FROM THE WHITE HOUSE SAYING THAT THEY WERE AT FAULT THAT THE PRESS WAS VULTURES PICKING OVER HIS BONES AND OF COURSE WE WERE DESIGNATED AS CHIEF VULTURES ON THE BASIS OF THE NOTE FOUND SIX DAYS AFTER MR FOSTER'S DEATH TORN UP AT THE BOTTOM OF HIS BRIEFCASE BUT SUPPOSEDLY MISSED IN PREVIOUS SEARCHES IN ONE OF THE COPIOUS LEAKS FROM THE REPORT THAT JUSTICE AND MR FISKE SAY WE CAN'T HAVE WE LEARN THAT A PARK POLICE INVESTIGATOR SAYS HE HAD EARLIER WATCHED MR NUSSBAUM EXAMINE THE BRIEFCASE THIS ACCOUNT APPEARED IN THE NEW YORK TIMES THE WEEK AFTER OUR SUIT WAS FILED MOST PEOPLE HAVING LEARNED ABOUT WHITEWATER FILES IN AND MYSTERIOUS VISITS TO MR FOSTER'S OFFICE NO LONGER ATTACH MUCH CREDENCE TO THE THEME OF BLAMING THE PRESS IN REPLYING TO OUR SUIT THE JUSTICE DEPARTMENT CONCEDES NEARLY ALL OF OUR FOIA CONTENTIONS BUT CLAIMS AN EXEMPTION FOR INFORMATION ON INVESTIGATIONS MR FISKE'S SUPPORTING LETTER SAYS THE PUBLIC DISCLOSURE OF ALL OR ANY PART OF THE PARK POLICE OR FBI REPORT AT THIS TIME WOULD SUBSTANTIALLY PREJUDICE THE ABILITY OF THE OFFICE OF THE INDEPENDENT COUNSEL TO CONDUCT ITS INVESTIGATION FOR EXAMPLE IF A WITNESS HAS ACCESS TO WHAT ANOTHER PERSON HAS SAID ABOUT A PARTICULAR FACT OR TO CONCLUSIONS REACHED IN A REPORT THAT WITNESS'S TESTIMONY OR STATEMENTS IN AN INTERVIEW COULD BE TAINTED BY THAT KNOWLEDGE SOUNDS LAWYERLY WHAT IN BLAZES IS HE TALKING ABOUT HIS WITNESSES ARE THE SAME PEOPLE WHO'D BEEN SITTING ON THIS REPORT FOR FIVE MONTHS BEFORE HE TOOK OFFICE WHICH OF THE FOLLOWING HASN'T HAD ACCESS TO IT MR NUSSBAUM BRUCE LINDSEY HAROLD ICKES MARK GEARAN MAGGIE WILLIAMS LISA CAPUTO THESE PEOPLE OR THOSE WHO WORK FOR OR WITH THEM WE FEEL ENTITLED TO SUSPECT ARE ALSO BEHIND THE SPIN ON THE SECRET REPORT INTENDED TO BLACKEN OUR NAME THEY AND COMPATRIOTS LIKE WEBSTER HUBBELL AT JUSTICE ALSO UNDERSTAND THAT MR FISKE WILL DO WHAT EVERY GOOD LAWYER WOULD AND THAT THIS WILL CONTINUE THEIR COVERUP BEYOND THE CONGRESSIONAL ELECTION AND WITH LUCK BEYOND THE PRESIDENTIAL ONE THERE'S MORE WHEN WE FILED SUIT WE ALSO FILED A SEPARATE REQUEST FOR A PHOTOCOPHY OF THE FOSTER NOTE THE TEXT HAD BEEN RELEASED AND A PHOTOCOPY HAS BEEN AVAILABLE FOR INSPECTION IN MR STERN'S OFFICE THE JUSTICE DEPARTMENT HAS REPLIED TO THIS REQUEST WITH A LETTER SAYING THE HANDWRITTEN NOTE WILL BE TREATED AS PART OF YOUR EARLIER REQUEST THROWING IT UNDER MR FISKE'S ALL OR ANY PART UMBRELLA IN OTHER WORDS THE DISTINGUISHED LAWYER IS ARGUING THAT HIS INVESTIGATION WILL BE JEOPARDIZED BY RELEASE OF A LETTER THE TEXT OF WHICH HAS ALREADY BEEN PRINTED IN EVERY NEWSPAPER IN THE LAND AND THE COPY OF WHICH HAS BEEN AVAILABLE FOR THOSE WILLING TO VISIT MR STERN'S OFFICE PERHAPS SOME OF THE MEMBERS OF CONGRESS WOULD LIKE TO EXPLORE THIS LOGIC IN THEIR MEETING WITH MR FISKE THIS MORNING IT IS A TASTE OF WHAT THEY CAN EXPECT IF THEY DEFER TO WHAT ANY GOOD LAWYER WOULD DO AND SHIRK THEIR OWN RESPONSIBILITY TO AIR IMPORTANT CONCERNS IN PUBLIC THEY SHOULD TELL MR FISKE THAT THEY ULTIMATELY DON'T CARE WHETHER SOMEONE GOES TO JAIL FOR OUR OWN PART WE HOPE NO ONE DOES THE MORE IMPORTANT RESPONSIBILITY IS TO GIVE THE PUBLIC THE FACTS IT NEEDS TO JUDGE THE PERFORMANCE OF ITS GOVERNMENT DECIDING WHETHER TO INDICT IS LESS IMPORTANT THAN DECIDING WHETHER TO THROW THE RASCALS OUT SEE RELATED LETTER LETTERS TO THE EDITOR DON'T INCLUDE ME IN YOUR SUSPICIONS' WSJ MARCH 17 1994 9403090051 YY94 MM03 9403170068 940317 WHO'S NEWS FIGGIE INTERNATIONAL IS SAID TO PRESS FOUNDER'S SON FINANCE AIDE TO RESIGN BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL FIGGIE INTERNATIONAL INC BOWING TO PRESSURE FROM ITS BANKERS PRESSED TWO KEY EXECUTIVES TO RESIGN AND FOR THE FIRST TIME MOVED TO LIMIT THE POWER OF THE COMPANY'S FOUNDER AND CHAIRMAN HARRY E FIGGIE JR ACCORDING TO A PERSON CLOSE TO THE SITUATION THE BOARD FORCED THE RESIGNATION OF VICE CHAIRMAN HARRY E FIGGIE III THE SON OF THE FOUNDER AND THE MAN WHOM MANY BLAME FOR THE MANUFACTURER'S CURRENT FINANCIAL PROBLEMS DIRECTORS ALSO SOUGHT AND RECEIVED THE RESIGNATION OF THE COMPANY'S SENIOR VICE PRESIDENT OF FINANCE JOSEPH SKADRA THIS INDIVIDUAL SAID IN ADDITION HARRY E FIGGIE JR RELINQUISHED HIS VOTE ON THE BOARD'S NOMINATING COMMITTEE WHICH WILL EVENTUALLY CHOOSE MR FIGGIE'S SUCCESSOR THE BOARD NAMED TWO OUTSIDE BOARD MEMBERS TO THE PANEL WHICH NO LONGER INCLUDES ANY FIGGIE EXECUTIVES IT SEEMS TO BE A STATEMENT BY THE BOARD THAT THEY WANT TO GET AWAY FROM THE PROBLEMS OF THE LAST FEW YEARS SAID PHIL BRANNON VICE PRESIDENT OF MABON SECURITES CORP IN NEW YORK THE WILLOUGHBY OHIO COMPANY WHICH MAKES FIRE TRUCKS AND SPORTING GOODS AMONG OTHER THINGS DECLINED TO SAY MUCH ABOUT THE DEPARTURES OTHER THAN THAT THE BOARD HAD ACCEPTED THE RESIGNATIONS THE BOARD WAS WELL AWARE OF THE INVESTMENT COMMUNITY'S AND VARIOUS CONSTITUENT CONCERNS ABOUT OUR CURRENT FINANCIAL SITUATION A SPOKESMAN SAID STOCK PRICE JUMPS WALL STREET HERALDED THE STEP IN TRADING ON THE NASDAQ STOCK MARKET FIGGIE'S CLASS B SHARES JUMPED 1625 OR 176 TO CLOSE AT 10875 BUT SOME STILL THINK THE ACTIONS DIDN'T GO FAR ENOUGH HARRY FIGGIE JR 70 YEARS OLD IS STILL IN THE CHAIRMAN'S SEAT A LOT OF PEOPLE WERE HOPING HE WOULD BE MOVED ASIDE FOR THE NEXT GENERATION SAID T EDWARD O'NEIL RESEARCH DIRECTOR AT SW RYAN & CO IN BALA CYNWYD PA IN OTHER NEWS THE COMPANY SAID IT HIRED FINANCIALTURNAROUND ADVISER JAY ALIX & ASSOCIATES OF SOUTHFIELD MICH TO ASSIST IN ITS RESTRUCTURING THE COMPANY ALSO SAID IT WILL ANNOUNCE SOON POSSIBLY TODAY ITS LONGDELAYED FOURTHQUARTER AND 1993 RESULTS WHICH IT HAS PREVIOUSLY INDICATED WON'T BE PRETTY IT SIGNALED IN MIDFEBRUARY THAT ITS 1993 OPERATING LOSSES AND YEAREND ADJUSTMENTS WOULD BE GREATER THAN PREVIOUSLY EXPECTED IT ALSO PLANS TO MEET WITH ITS BANKERS TODAY TO DISCUSS A NEW LONGTERM FINANCING PACKAGE AT A MEETING WITH TOP EXECUTIVES IN MIDFEBRUARY BANKERS EXPRESSED CONCERNS ABOUT THE NEED FOR NEW MANAGEMENT ACCORDING TO A PERSON WHO ATTENDED THE MEETING HARRY FIGGIE III WILL ASSUME ACTIVE LEADERSHIP OF CLARKRELIANCE CORP THE FIGGIE FAMILY'S CLOSELY HELD MANUFACTURING COMPANY HE HAD PRESIDED OVER A COSTLY MODERNIZATION PROGRAM DURING HIS FATHER'S NEARLY 18MONTH ILLNESS WHICH CONTRIBUTED TO FIGGIE INTERNATIONAL'S CURRENT LIQUIDITY PROBLEMS ACCORDING TO PEOPLE CLOSE TO THE SITUATION THE BOARD LAST MONTH ELEVATED DIRECTOR WALTER M VANNOY 66 TO BE COVICE CHAIRMAN AND DESIGNATED MR VANNOY AS SECONDINCOMMAND KNOWN AS DOC SINCE HE IS A PHYSICIAN DR FIGGIE WILL REMAIN A DIRECTOR UNTIL HIS TERM EXPIRES AT THE ANNUAL MEETING WHICH HASN'T YET BEEN SET BUT IS USUALLY IN JUNE DR FIGGIE COULDN'T BE REACHED FOR COMMENT MR SKADRA 52 JOINED FIGGIE IN 1970 HE ALSO COULD NOT BE REACHED FOR COMMENT A COMPANY SPOKESMAN SAID THE CONCERN HAS A PREFERRED CANDIDATE FOR THE CHIEF FINANCIAL OFFICER POST BUT DECLINED TO PROVIDE A NAME 9403170067 940317 LETTERS TO THE EDITOR A STRAIGHT SHOOTER GIVE HER A CHANCE IN REGARD TO YOUR MARCH 15 EDITORIAL WHO WAS WEBSTER HUBBELL I AS A FORMER MEMBER OF THE BUSH/QUAYLE '92 NATIONAL CAMPAIGN STAFF I HAVE NO SPECIAL BRIEF FOR THE CLINTONS OR THEIR ADMINISTRATION BUT STILL I THINK YOU HAVE UNFAIRLY DISPARAGED JAIME GORELICK CURRENT GENERAL COUNSEL OF THE DEFENSE DEPARTMENT AND DEPUTY ATTORNEY GENERALDESIGNATE BY SUGGESTING THAT SHE'S NOT A FIRSTSTRING PLAYER MS GORELIK FORMER PRESIDENT OF THE DC BAR IS FAR MORE THAN SOME HACK CRIMINAL LAWYER HER FORMER FIRM IS ONE OF THE PREMIER APPELLATE FIRMS IN THE US SHE HANDLED SUCCESSFULLY MANY KNOTTY CIVIL MATTERS AS WELL AS CRIMINAL AND SHE HERSELF IS A STRAIGHT SHOOTER HONEST AND CANDID IF CONFIRMED SHE'LL MAKE A GOOD DEPUTY ATTORNEY GENERAL AND WILL SERVE THE PRESIDENT AND THE COUNTRY WELL GIVE HER A CHANCE WILL YA 9403170066 940317 WHO'S NEWS INSTRON CORP INSTRON CORP CANTON MASS JOHN F SMITH AND DENNIS J MOORE WERE NAMED DIRECTORS AT THIS MAKER OF MATERIALS TESTING INSTRUMENTS AND SYSTEMS BOOSTING THE SIZE OF THE BOARD TO EIGHT MEMBERS MR SMITH 59 YEARS OLD IS A FORMER SENIOR VICE PRESIDENT OF DIGITAL EQUIPMENT CORP AND PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MYCOS INTERNATIONAL A CONSTRUCTION DEVELOPMENT COMPANY MR MOORE 55 IS CHAIRMAN AND CHIEF EXECUTIVE OF ESCO ELECTRONICS CORP 9403170065 940317 LETTERS TO THE EDITOR MY ULTERIOR' MOTIVE WANTING A FAIR DEAL ALAN GOVER OF WEIL GOTSHAL & MANGES WHO WAS ZALE'S LEAD COUNSEL DURING ITS RECENT BANKRUPTCY HAS APPARENTLY COMPLETELY MISSED THE POINT LETTERS FEB 23 OF MY JAN 19 MACY'S DEBTOR PARADISE MY ARTICLE POINTED TO THE ZALE BANKRUPTCY AS AN EXAMPLE OF HOW ENDING A DEBTOR'S EXCLUSIVE PERIOD IN WHICH TO FILE A PLAN EXPEDITED A COMPANY'S EMERGENCE FROM BANKRUPTCY THE ARTICLE CONTRASTED THE SUCCESSFUL EFFORTS MADE BY MR GOVER AMONG OTHERS TO QUICKLY GET ZALE OUT OF BANKRUPTCY WITH THE SEEMINGLY INTERMINABLE EFFORT BEING MADE IN THE MACY BANKRUPTCY WHERE WEIL GOTSHAL & MANGES IS ALSO COMPANY COUNSEL APPARENTLY MR GOVER DOES NOT RECOGNIZE AN ACCOLADE WHEN HE SEES IT INSTEAD HIS AGENDA APPEARS TO BE TO DISCREDIT MY ARGUMENT AGAINST EXTENDING EXCLUSIVITY IN THE MACY BANKRUPTCY BY RECOLLECTING HOW WELL EXCLUSIVITY ADVANCED THE ZALE BANKRUPTCY MR GOVER WRITES IN FACT THIS FAST TRACK SCHEDULE WAS ESSENTIALLY IMPOSED ON ZALE BY THE COURT IN RESPONSE TO A MOTION MADE BY A CREDITOR BARRE & CO TO END EXCLUSIVITY THIS IS JUST BLATANTLY UNTRUE IN SEPTEMBER 1992 THE COURT AGAINST ZALE'S WISHES DECIDED TO LET ANY CREDITOR FILE A PLAN FOR ZALE ZALE MAINTAINED EXCLUSIVITY FOR ONLY NINE MONTHS AND IT WAS NOT UNTIL AFTER EXCLUSIVITY WAS ENDED THAT A CONSENSUAL PLAN WAS ARRIVED AT MACY'S HAS HAD EXCLUSIVITY FOR MORE THAN TWO YEARS AND HAS YET TO EVEN FILE A PLAN RATHER THAN ATTEMPTING TO RAISE THE LEGITIMATE COUNTERARGUMENT TO MY ARTICLE OF WHY THE MACY BANKRUPTCY MIGHT BE DISTINGUISHABLE FROM THE ZALE BANKRUPTCY I DO NOT BELIEVE THAT IT IS MR GOVER INSTEAD ON THE ONE HAND ATTACKS MY MOTIVES AND ON THE OTHER HAND SAYS THAT IN THE ZALE CASE I WAS AN OPPONENT OF CASE RESOLUTION IF REFUSING TO ACCEPT AN INFERIOR OFFER TO SETTLE LITIGATION MAKES ME AN OPPONENT OF CASE RESOLUTION THEN I PLEAD GUILTY HOWEVER IN THE ZALE CASE MY CONSTITUENTS RECEIVED ABOUT 20 MORE THAN THE PROPOSAL MR GOVER SO INDIGNANTLY IMPLIES THE ZALE CREDIT CORP CREDITORS SHOULD HAVE ACCEPTED MR GOVER ALSO INSINUATES THAT THE PRESIDING JUDGE IN THE CASE WAS SOMEHOW CRITICAL OF MY CONDUCT LET ME SIMPLY NOTE THAT THE COURT FOUND THAT DICKSTEIN & CO MADE A SUBSTANTIAL CONTRIBUTION TO THE CASE AND AS A RESULT DIRECTED ZALE TO REIMBURSE DICKSTEIN & CO FOR 98000 IN LEGAL AND OTHER EXPENSES AS FOR MY MOTIVES IN WRITING THE ARTICLE I PLEAD GUILTY TO THE CHARGE OF BEING A PURCHASER AT SHARP DISCOUNTS OF CLAIMS AGAINST FINANCIALLY DISTRESSED ENTITIES AND MY FIRM IS IN FACT A MACY CREDITOR BY VIRTUE OF OWNING A SMALL AMOUNT OF MACY TRADE DEBT MR GOVER TRIES TO SOMEHOW IMPLY AN ULTERIOR MOTIVE ON MY PART WELL I ALSO PLEAD GUILTY TO WANTING MACY'S TO EMERGE FROM BANKRUPTCY EXPEDITIOUSLY A SENTIMENT THAT MR GOVER AND WEIL GOTSHAL & MANGES APPARENTLY DOES NOT SHARE 9403170064 940317 TECHNOLOGY BRIEF LIPOSOME TECHNOLOGY INC COMPANY WILL RESUME SALES OF AMPHOCIL DRUG IN UK LIPOSOME TECHNOLOGY INC SAID IT WILL RESUME SELLING ITS AMPHOCIL DRUG IN THE UNITED KINGDOM FOLLOWING A POSITIVE RULING BY BRITISH AUTHORITIES LIPOSOME OF MENLO PARK CALIF SAID THAT THE UK'S MEDICINES CONTROL AGENCY HAS CONFIRMED THAT REVISIONS TO THE COMPANY'S CLINICAL DATA DON'T AFFECT THE AGENCY'S EARLIER APPROVAL OF AMPHOCIL WHICH FIGHTS FUNGAL INFECTIONS THAT SOMETIMES ACCOMPANY CHEMOTHERAPY AND ORGAN TRANSPLANTS IN DECEMBER LIPOSOME HAD OPTED TO DELAY UK SALES TO REVIEW THE DATA REDUCING SLIGHTLY THE REPORTED PERCENTAGE OF PEOPLE WHO RESPONDED TO THE TREATMENT IN LATE NASDAQ STOCK MARKET TRADING LIPOSOME'S STOCK ROSE 125 CENTS TO 8875 9403170063 940317 INTERNATIONAL BRIEF GRAND METROPOLITAN PLC BRITISH FIRM PLANS VENTURE TO REPLACE UNIT IN COLOMBIA GRAND METROPOLITAN PLC A BRITISH DRINKS AND FOODS COMPANY SAID IT IS SETTING UP A NEW JOINT VENTURE IN COLOMBIA TO REPLACE ITS EXISTING UNIT THE BOGOTABASED COMPANY RUN VIA GRAND MET'S INTERNATIONAL DISTILLERS & VINTNERS DIVISION WILL BE CALLED INTERNATIONAL DISTILLERS COLOMBIA AND WILL BE 51OWNED BY IDV DARIO PARRA OWNER OF THE LICORESA DRINKSDISTRIBUTION CONCERN IN COLOMBIA WILL OWN 15 AND THE ARUBABASED POSNER FAMILY WHICH OWNS DRINKSDISTRIBUTION BUSINESSES WILL OWN 34 INTERNATIONAL DISTILLERS COLOMBIA WILL IMPORT AND DISTRIBUTE IDV'S BRANDS SUCH AS J&B RARE SCOTCH WHISKY SMIRNOFF VODKA BAILEYS CREAM LIQUEUR GILBEY'S GIN AND LE PIAT D'OR WINE 9403170062 940317 ECONOMY FIDELITY INVESTMENTS SEES BIG OUTFLOW FROM ITS DEVELOPINGCOUNTRIES FUND BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S BIGGEST MUTUALFUND COMPANY IS SEEING BIG OUTFLOWS OF INVESTOR DOLLARS FROM ITS FUND THAT SPECIALIZES IN NOTES AND BONDS OF DEVELOPING COUNTRIES MONEY HAS GUSHED OUT OF FIDELITY INVESTMENTS' NEW MARKETS INCOME FUND CONTRIBUTING TO A SHRINKAGE OF MORE THAN 40 IN THE FUND'S SIZE SINCE THE END OF JANUARY WHAT SENT MANY INVESTORS FLEEING WAS SAGGING PERFORMANCE FOR SOCALLED EMERGINGMARKETS DEBT IN RECENT WEEKS MOST OTHER EMERGING MARKETS INCOME FUNDS HAD ONLY MILD OUTFLOWS OR EVEN INFLOWS ACCORDING TO AMG DATA SERVICES A FUNDFLOW TRACKING FIRM AND ACCORDING TO EXECUTIVES AT SEVERAL FUNDS AT YEAR END THERE WERE SEVEN BOND FUNDS EITHER DEDICATED TO EMERGING MARKETS OR ROUTINELY MAKING HEAVY INVESTMENTS IN EMERGING MARKETS ACCORDING TO LIPPER ANALYTICAL SERVICES INC THESE FUNDS HAD 63 BILLION IN ASSETS AT THE END OF 1993 EMERGINGMARKETS BONDS ALSO ARE FOUND WIDELY IN MANY INTERNATIONALBOND FUNDS AND EVEN USBOND FUNDS IN SMALLER AMOUNTS AFTER POSTING BIG RETURNS AFTER ITS START IN MAY 1993 THE FIDELITY FUND REVERSED COURSE IT IS DOWN MORE THAN 14 SO FAR THIS YEAR IN TOTAL RETURN A FIGURE THAT COMBINES THE FUND'S SHAREPRICE CHANGE PLUS DIVIDENDS THE FUND WHICH HAD 358 MILLION IN ASSETS ON JAN 31 1994 NOW IS DOWN TO 200 MILLION THE FUND INVESTS IN THE DEBT OF EMERGINGMARKET COUNTRIES WHICH HAVE FALLEN A LOT MORE THAN EUROPEAN AND OTHER BOND MARKETS SAYS MANAGER ROBERT CITRONE WHO WAS IN NEW YORK FOR A LUNCH WITH THE NEWS MEDIA HE BLAMED SOME OF THE BIG DECLINE ON TECHNICAL FACTORS SUCH AS MASSIVE SELLING BY HEDGE FUNDS AND OTHER SPECULATORS ANOTHER CONTRIBUTOR TO THE FUND'S WOES IT HELD SOME DERIVATIVE SECURITIES THAT FARED WORSE THAN THE ACTUAL CASH MARKETS ALTHOUGH THESE DERIVATIVES WERE LESS THAN 3 OF THE FUND MORE SIGNIFICANTLY MANY DEVELOPINGCOUNTRY BONDS WERE HIT HARD WHEN THE TERMS OF THE POLISH DEBT RESTRUCTURING WERE LEARNED SOME SHAREHOLDERS OF THE FUND ALSO HAD CONCERNS BECAUSE LAST WEEKEND NEITHER FIDELITY'S PHONE REPRESENTATIVES NOR ITS MONTHLY MUTUAL FUND GUIDE PUBLICATION HAD INFORMATION ON THE FUND'S HOLDINGS MR CITRONE SAYS FIDELITY IS WORKING TO MAKE THE NEW FUND'S PORTFOLIO HOLDINGS AVAILABLE ON A REGULAR BASIS MR CITRONE SAYS DEVELOPINGMARKET BONDS NOW ARE A GREAT BUY FIXEDRATE MEXICAN BRADY BONDS YIELD 45 PERCENTAGE POINTS MORE THAN US TREASURYS AND ARGENTINE BRADY BONDS YIELD 6 PERCENTAGE POINTS MORE BRADY BONDS ARE MADE FROM DEFAULTED LOANS RESTRUCTURED UNDER GUIDELINES SET IN PLACE BY FORMER US TREASURY SECRETARY NICHOLAS BRADY HALF THE FUND IS IN MEXICAN AND ARGENTINE BONDS WE'RE BACK NOW TO INTERESTRATE SPREAD LEVELS WE HAD BEFORE THE RATIFICATION OF THE NORTH AMERICAN FREE TRADE AGREEMENT MR CITRONE SAYS MR CITRONE SAYS HE DIDN'T HAVE MUCH TROUBLE SELLING EMERGINGMARKET DEBT TO MEET REDEMPTIONS BUT HE ADDS THAT FIDELITY IS THINKING OF IMPOSING A REDEMPTION FEE ON THE FUND TO DISCOURAGE SHORTTERM TRADING 9403170061 940317 LETTERS TO THE EDITOR DON'T INCLUDE ME IN YOUR SUSPICIONS' MR VINCENT FOSTER'S DEATH WAS WIDELY BLAMED ON US YOU WRITE IN AN EDITORIAL MARCH 9 MICHAEL KINSLEY CAST THE FIRST STONE AS IS HIS WONT WE NEVER VIEWED THIS THEME AS AN ACCIDENT YOU GO ON TO CITE A NEWS ARTICLE THAT CONFIRMED OUR SUSPICIONS BY REPORTING UNSOLICITED CALLS FROM THE WHITE HOUSE URGING THIS THEME FOR THE RECORD MY COLUMN ABOUT THE WALL STREET JOURNAL AND VINCENT FOSTER WAS NOT OCCASIONED BY ANY CALLS FROM THE WHITE HOUSE SOLICITED OR UNSOLICITED I HAD NO DISCUSSION ABOUT IT BEFORE IT APPEARED WITH ANYONE IN THE WHITE HOUSE OR OTHERWISE CLINTONCONNECTED ALSO FOR THE RECORD THE COLUMN SPECIFICALLY SAID TWICE THAT THE JOURNAL SHOULD NOT BE BLAMED FOR FOSTER'S SUICIDE MY POINT WAS THAT THE JOURNAL'S EDITORIALS ABOUT FOSTER AND THE ROSE LAW FIRM WERE SHODDY AND DISHONEST YOUR MARCH 9 EDITORIAL CONFIRMS MY SUSPICIONS 9403170060 940317 BUSINESS BRIEF COMPUWARE CORP AGREEMENT REACHED TO BUY A DUTCH SOFTWARE CONCERN IN A MERGER OF TWO FASTGROWING SOFTWARE COMPANIES COMPUWARE CORP ANNOUNCED AN AGREEMENT TO BUY UNIFACE HOLDING BV FOR STOCK VALUED AT MORE THAN 245 MILLION COMPUWARE FARMINGTON HILLS MICH SAID IT WILL ISSUE 67 MILLION OF ITS COMMON SHARES TO UNIFACE STOCKHOLDERS IN ADDITION HOLDERS OF UNIFACE OPTIONS WILL RECEIVE ABOUT 13 MILLION COMPUWARE OPTIONS THOUGH THEIR VALUE WAS NOT SPECIFIED COMPUWARE CLOSED AT 36625 UP 875 CENTS IN NASDAQ STOCK MARKET TRADING UNIFACE BASED IN AMSTERDAM THE NETHERLANDS SELLS PROGRAMMING TOOLS TO HELP CUSTOMERS DEVELOP SOFTWARE TO RUN THEIR BUSINESSES USING NETWORKS OF PCS AND WORKSTATIONS IT HAS MAJOR OPERATIONS IN ALAMEDA CALIF COMPUWARE MAKES SIMILAR PROGRAMS FOR USE WITH MAINFRAME COMPUTERS AND ALSO PROVIDES DATA PROCESSING SERVICES IT SAID THE MOVE WILL HELP GIVE IT PRODUCTS TO WORK ON A WIDER ARRAY OF MACHINES AND SOLVE MORE CUSTOMER PROBLEMS 9403170059 940317 BUSINESS BRIEF UNITED PARCEL SERVICE OF AMERICA FIRM WILL NOW GUARANTEE ONTIME OVERSEAS DELIVERY UNITED PARCEL SERVICE OF AMERICA INC SAID IT WILL OFFER ONTIME GUARANTEES ON ITS INTERNATIONAL DELIVERIES MATCHING SIMILAR RECENT COMMITMENTS BY FEDERAL EXPRESS PREVIOUSLY UPS OFFERED GUARANTEES ONLY ON DELIVERIES IN THE US AND CANADA EFFECTIVE MARCH 21 THE PACKAGEDELIVERY GIANT WILL GUARANTEE DELIVERY BY 5 PM THE SECOND BUSINESS DAY TO 46 COUNTRIES AND DELIVERY BY NOON TO 13 EUROPEAN COUNTRIES UPS WILL ALSO GUARANTEE OVERNIGHT DELIVERY OF LETTERS AND DOCUMENTS FROM MAJOR US CITIES TO 23 COUNTRIES FEDERAL EXPRESS RECENTLY ANNOUNCED IT WOULD GUARANTEE DELIVERY BY NOON THE SECOND BUSINESS DAY TO 50 CITIES IN EUROPE STEPPING UP FROM A PREVIOUS 5 PM DEADLINE THE MOVE IS PART OF UPS'S PUSH TO IMPROVE PACKAGETRACING THROUGH NEW TECHNOLOGY AND TO SPEED DELIVERY TIMES INDUSTRY ANALYSTS SAID CUSTOMERS ARE NOW DEMANDING MORE PRECISE DELIVERY TIMES TO TRACK THEIR INVENTORIES AND MATERIALS 9403170058 940317 NOTABLE & QUOTABLE FROM MARCH 7 REMARKS BY LAWRENCE LINDSEY A MEMBER OF THE FED'S BOARD OF GOVERNORS TO THE BALTIMORE CHAPTER OF THE COMMERCIAL FINANCE ASSOCIATION AN OBVIOUS PROBLEM FOR ECONOMIC GROWTH IN THE NEXT TWO YEARS IS THAT A SUSTAINED DECLINE IN THE PERSONAL SAVING RATE AS A MEANS OF FINANCING HIGHER CONSUMPTION SEEMS UNLIKELY NINETEEN NINETYTHREE TAX LEGISLATION IS GOING TO AFFECT HOUSEHOLD CASH FLOW FOR THE FIRST TIME THIS YEAR THIS TAX INCREASE IS LIKELY TO LOWER THE SAVING RATE STILL FURTHER ALL ELSE EQUAL 9403170057 940317 BUSINESS BRIEF MERCHANTS GROUP INC INSURER ESTIMATES LOSSES IN WINTER TIED TO WEATHER MERCHANTS GROUP INC SAID IT EXPECTS THAT WEATHERRELATED LOSSES FOR JANUARY AND FEBRUARY WILL BE ABOUT 18 MILLION GREATER THAN NORMAL OR ABOUT 38 CENTS A SHARE MORE AFTER TAXES THE WEATHER CAUSED INCREASED INSURANCE CLAIMS FOR ROOF DAMAGE AND WATER DAMAGE RELATING TO FROZEN AND BURST PIPES RESULTS FOR THE FIRST QUARTER TO BE REPORTED IN MAY WILL DEPEND ON THE LEVEL OF WEATHERRELATED LOSSES INCURRED IN MARCH AS WELL AS CLAIMS FOR NONWEATHER RELATED LOSSES FOR THE ENTIRE QUARTER THE BUFFALO NY PROPERTY AND CASUALTY INSURER SAID 9403170056 940317 BUSINESS BRIEF STONE & WEBSTER INC MAIN UNIT TO CUT STAFF 6 AS FIRM ACTS TO TRIM COSTS STONE & WEBSTER INC EXPECTING FINANCIAL RESULTS TO BE NEGATIVELY INFLUENCED IN THE FIRST PART OF THE YEAR SAID IT WOULD CUT COSTS AND TRIM ITS PRINCIPAL SUBSIDIARY'S WORK FORCE 6 THE MOVE FOLLOWS REMARKS MADE IN THE COMPANY'S LATEST ANNUAL REPORT WHICH SAYS RESULTS WOULD BE HURT BY LOWER PROFIT MARGINS AND DELAYS IN THE STARTUP OF SOME NEW WORK AMONG OTHER FACTORS THE STONE & WEBSTER ENGINEERING CORP UNIT WILL CUT 300 OF ABOUT 5000 JOBS NATIONWIDE AND CONTINUE TO CONSOLIDATE CERTAIN OFFICES AND DIVISIONS STONE & WEBSTER REVENUE SUFFERED IN THE LATEST REPORTING PERIOD FALLING NEARLY 13 TO 633 MILLION IN THE FOURTH QUARTER 1993 STONE & WEBSTER IS AN ENGINEERING AND CONSTRUCTION COMPANY 9403170055 940317 BUSINESS BRIEF HEWLETTPACKARD CO COMPANY LOWERS THE PRICE OF DESKTOP SCANNER BY 30 HEWLETTPACKARD CO ANNOUNCED A 30 PRICE REDUCTION ON A DESKTOPSCANNING SYSTEM AND SAID IT WILL SELL THE PRODUCT WITH SOFTWARE OF CALERA RECOGNITION SYSTEMS INC CALERA OF SUNNYVALE CALIF SPECIALIZES IN TECHNOLOGY FOR RECOGNIZING CHARACTERS WITH THE REDUCTION PALO ALTO CALIFBASED HEWLETT'S SCANJET IIP SCANNER WILL HAVE A LIST PRICE OF 599 THE COMPANY SAID SEPARATELY HEWLETT ANNOUNCED TWO MODELS OF SOCALLED SERVER COMPUTERS FOR SHARING FILES AMONG NETWORKS OF PERSONAL COMPUTERS THE ELECTRONICDATA CONCERN SAID ITS NETSERVER LF COMPUTER STARTS AT 3349 AND ITS NETSERVER LM STARTS AT 4449 THE SYSTEMS GIVE USERS A CHOICE OF SEVERAL INTEL CORP MICROPROCESSOR CHIPS 9403170054 940317 DON'T PROTECT' TELECOMMUNICATIONS BY THOMAS J DUESTERBERG THE HOUSE ENERGY AND COMMERCE COMMITTEE YESTERDAY APPROVED TWO KEY BILLS THAT SPONSORS CLAIM WILL PAVE THE WAY TO THE MYTHIC INFORMATION SUPERHIGHWAY THE LEGISLATION GENERALLY SUPPORTED BY THE CLINTON ADMINISTRATION IS SUPPOSED TO ENABLE AMERICAN BUSINESS TO STAY AHEAD OF THE REST OF THE WORLD IN THE PRODUCTS AND SERVICES THAT WILL DEFINE THE INFORMATION AGE AS VICE PRESIDENT AL GORE SAID IN HIS JAN 11 SPEECH BEFORE THE TELEVISION ACADEMY IN LOS ANGELES BY TAKING THE LEAD IN QUICKLY EMPLOYING THESE NEW INFORMATION TECHNOLOGIES AMERICA'S BUSINESSES WILL GAIN ENORMOUS ADVANTAGE IN THE WORLDWIDE MARKETPLACE UNFORTUNATELY A MAJOR PROVISION OF THE LEGISLATION SHOWS THAT SOME MEMBERS OF CONGRESS ARE TOO BUSY LOOKING IN THE REARVIEW MIRROR TO SEE THE ROAD AHEAD BY REQUIRING TELEPHONE COMPANIES TO PRODUCE THEIR EQUIPMENT DOMESTICALLY CONGRESS IS SUCCUMBING TO ITS PROPENSITY TO PROTECT EXISTING JOBS WHILE NEGLECTING THE PROSPECT OF CREATING NEW ONES US BUSINESS IS ALREADY USING NEWER INFORMATION AND COMMUNICATION TECHNOLOGIES TO SOLIDIFY ITS WORLDWIDE LEAD IN MANUFACTURING AND SERVICE PRODUCTIVITY WE HAVE FOR INSTANCE MORE THAN TWICE AS MANY PERSONAL COMPUTERS IN USE PER WORKER AS GERMANY AND ALMOST FOUR TIMES AS MANY AS JAPAN THE DEPLOYMENT OF THE LATEST TECHNOLOGIES INCLUDING COMPUTER NETWORKING BROADER ACCESS TO DATA BASES MORE MOBILITY IN PERSONAL COMMUNICATIONS AND NEW INTERACTIVE INFORMATION SERVICES WHICH THE LEGISLATION IN CONGRESS PROMOTES WILL ENHANCE THE OVERALL PRODUCTIVITY ADVANTAGES OF OUR ECONOMY EVEN FURTHER AS MR GORE REPORTED IN LOS ANGELES WE ALSO HAVE A LEAD IN PRODUCING THE EQUIPMENT AND SERVICES OF THE NEW INFORMATION AGE A LEAD THAT IS TRANSLATING INTO A RAPID GROWTH IN OUR EXPORTS EVEN BEFORE THE ENTRY OF POTENTIAL MANUFACTURING POWERS LIKE THE BELL OPERATING COMPANIES AMERICAN PRODUCERS OF CELLULAR EQUIPMENT SATELITE SYSTEMS SOPHISTICATED SWITCHING AND TRANSMISSION EQUIPMENT AND MOBILE PERSONAL COMMUNICATORS HAVE PIONEERED WORLDWIDE PRODUCTION OF THESE NEW TECHNOLOGIES WE HAVE FOR EXAMPLE INCREASED OUR FOREIGN SALES OF TELEPHONE EQUIPMENT BY 210 SINCE 1989 US COMPANIES NOW ACCOUNT FOR 90 OF THE WORLD MARKET IN VIDEO CONFERENCING EQUIPMENT AND SELL ABOUT 70 OF ALL THEIR MICROWAVE RADIO SYSTEMS IN INTERNATIONAL MARKETS THE BILLS NOW MAKING THEIR WAY THROUGH CONGRESS WOULD ADVANCE THE DEREGULATION OF THE TELEPHONE INDUSTRY EVEN FURTHER BY ALLOWING THE REGIONAL BELL OPERATING COMPANIES TO COMPETE IN AREAS LIKE LONGDISTANCE SERVICE AND EQUIPMENT MANUFACTURING AND NEWER SERVICES LIKE VIDEO ON DEMAND AND MOBILE PERSONAL COMMUNICATIONS THE LEGISLATION WOULD ALSO ALLOW CABLE AND BROADCAST COMPANIES TO OFFER MORE SERVICES TO THE HOME ACCORDING TO MOST KNOWLEDGEABLE OBSERVERS THIS WOULD CREATE MORE EFFICIENT COMPANIES LOWER PRICES FOR THE CONSUMER AND FACILITATE QUICKER ENTRY INTO THE NEW AGE OF THE INFORMATION ECONOMY MANY IN CONGRESS HOWEVER SIMPLISTICALLY SEE TELECOMMUNICATIONS LEGISLATION AS YET ANOTHER MEANS OF REDUCING THE MERCHANDISE TRADE DEFICIT A BILL CHANGING THE REGULATORY STRUCTURE OF A GIANT INDUSTRY PROVIDES AN IDEAL OPPORTUNITY FOR TRADE HAWKS FIRED UP BY THE CONTINUING DISPUTE WITH JAPAN SO THE LEADERS OF THE CONGRESSIONAL EFFORT TO DEREGULATE THE TELEPHONE COMPANIES MOST NOTABLY STALWART PROTECTIONISTS SUCH AS REP JOHN DINGELL AND SEN ERNEST HOLLINGS HAVE INSERTED A PROVISION IN THEIR BILLS THAT WOULD REQUIRE THE REGIONAL TELEPHONE COMPANIES TO PRODUCE THEIR PRODUCTS IN THE US FOREIGN PARTS WOULD BE LIMITED TO 40 A CLOSE LOOK AT THE DATA IN THE TELECOMMUNICATIONS FIELD SHOWS THAT CONGRESS'S CONCERNS ARE MISPLACED AND THAT THE PROPOSED SOLUTION WOULD LIKELY BACKFIRE BY CLOSING OFF OPPORTUNITIES FOR EXPORT EXPANSION IN THE MOST DYNAMIC PARTS OF THE INDUSTRY IT WOULD ALSO UNDERMINE THE SUBSTANTIAL BENEFITS OF OTHER PARTS OF THE BILL IN 1993 THE US HAD AN OVERALL TRADE DEFICIT OF ABOUT 16 BILLION IN CUSTOMER PREMISES EQUIPMENT SUCH AS TELEPHONE RECEIVERS AND FAX MACHINES THESE ARE LOWVALUEADDED AND LOWTECHNOLOGY PRODUCTS ON THE OTHER HAND WE HAVE A TRADE SURPLUS IN MOST OF THE HIGHTECHNOLOGY PRODUCTS AND SERVICES WE HAD A TRADE SURPLUS IN 1993 IN NETWORK EQUIPMENT SUCH AS CENTRAL SWITCHES AND MULTIPLEXING EQUIPMENT WE ALSO HAD A SURPLUS IN CELLULAR SYSTEMS MICROWAVE SYSTEMS AND TRANSMISSION EQUIPMENT WE HAVE ABOUT 70 OF THE WORLD MARKET IN SATELLITE COMMUNICATIONS EQUIPMENT AND 50 OF THE WORLD MARKET IN GROUND SYSTEMS TO CONNECT WITH SATELLITES IN OTHER WORDS US MANUFACTURERS ARE THE TECHNOLOGICAL LEADERS AND SUPPLIERS OF CHOICE IN THE FASTESTGROWING BESTPAYING AND MOSTPROFITABLE SECTORS OF THE TELECOMMUNICATIONS MARKET THE PROBLEM WITH THE PROTECTIONIST PROVISIONS IN THE HOUSE AND SENATE BILLS IS THAT THEY VIOLATE THE RULES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND THE NORTH AMERICAN FREE TRADE AGREEMENT IF THEY ARE ENACTED AS CONGRESSIONAL LEADERS INSIST THE US WILL BE SUBJECT TO RETALIATION UNDER THE RULES OF THESE AGREEMENTS THE MOST LIKELY TARGETS OF RETALIATION ARE THE HIGHERTECHNOLOGY SEGMENTS OF THE INDUSTRY WHERE THE US HAS SUPERIOR PRODUCTS AND SIGNIFICANT MARKET SHARE GROWTH IN THE HIGHTECHNOLOGY PRODUCTS AND SERVICES IS ESTIMATED BY THE COMMERCE DEPARTMENT AT 15 OR MORE PER YEAR WHILE SHIPMENTS OF CUSTOMER PREMISES EQUIPMENT ARE DECLINING BY MORE THAN 2 PER YEAR UNDERMINING TELECOMMUNICATIONS LIBERALIZATION IS PARTICULARLY UNFORTUNATE BECAUSE THE PRIVATIZATION OF FOREIGN TELEPHONE MONOPOLIES IS PROVIDING AN UNPRECEDENTED OPPORTUNITY FOR COMPETITIVE US SUPPLIERS IT WOULD BE COUNTERPRODUCTIVE IN THE EXTREME TO GIVE JAPAN THE EUROPEAN UNION AND LITERALLY DOZENS OF DEVELOPING COUNTRIES AN EXCUSE TO SHUT US EXPORTERS OF HIGHTECHNOLOGY PRODUCTS OUT OF THEIR MARKETS THIS STORY UNFOLDING AS WE TRY TO FACILITATE THE BIRTH OF THE INFORMATION AGE IS REMINISCENT OF THE INDUSTRIAL ERA WHENEVER POLITICIANS TRY TO IMPLEMENT AN INDUSTRIAL POLICY THEY AID DECLINING SECTORS GERMANY OFTEN VIEWED AS AN EXEMPLAR FOR A NEW INDUSTRIAL POLICY GIVES MOST OF ITS SUBSIDIES TO THE STEEL SHIPBUILDING RAILROAD AND COAL INDUSTRIES WHICH IS ONE REASON THE GERMAN ECONOMY IS IN SUCH DEEP TROUBLE JAPAN TOO HAS BET WRONG IN AREAS LIKE HIGHDEFINITION TV AND THE EARLY INTRODUCTION OF DIGITAL STANDARDS IN TELECOMMUNICATIONS AND CONSEQUENTLY LAGS BEHIND US PRODUCERS IN THOSE AREAS CONGRESSIONAL ADVOCATES OF THE DOMESTIC TELECOMMUNICATIONS INDUSTRY FALL INTO THE SAME TRAP BY TRYING TO RECTIFY A TRADE IMBALANCE STEMMING FROM THE PRODUCTION OF TELEPHONE RECEIVERS BY ENDANGERING AN INCREDIBLE EXPORT GROWTH OPPORTUNITY IN THE MORE ADVANCED SEGMENTS OF THE INDUSTRY TO HIS CREDIT TRADE REPRESENTATIVE MICKEY KANTOR HAS SIGNALED OPPOSITION TO THIS PROVISION IN THE DINGELL AND HOLLINGS BILLS EVEN THOUGH THE ADMINISTRATION IS OFTEN GUILTY OF PROMOTING PROTECTIONIST INDUSTRIAL POLICY A MORE CREDIBLE POSITION WOULD BE FOR THE WHITE HOUSE TO THREATEN A VETO OF THIS LEGISLATION IF THE PROTECTIONIST ELEMENTS REMAIN OTHERWISE THE BILLS WILL UNDERMINE THE EFFICIENCY GAINS OF DEREGULATING THE TELEPHONE INDUSTRY AND UNDO THE CONSIDERABLE PROGRESS OF NAFTA AND THE URUGUAY ROUND AGREEMENTS MR DUESTERBERG IS DIRECTOR OF THE COMPETITIVENESS CENTER AT THE HUDSON INSTITUTE IN WASHINGTON HE WAS ASSISTANT SECRETARY OF COMMERCE FOR INTERNATIONAL ECONOMIC POLICY FROM 1989 TO 1993 9403170053 940317 BUSINESS BRIEF LOCKHEED CORP VENTURE CHOSEN TO LAUNCH COMMUNICATIONS SATELLITES LOCKHEED CORP SAID ITS JOINT VENTURE TO SELL RUSSIAN PROTON ROCKETS WON A CONTRACT TO LAUNCH MULTIPLE RADIO AND TELEVISION SATELLITES FOR SOCIETE EUROPEENE DES SATELLITES THE VALUE OF THE CONTRACT HAS BEEN ESTIMATED AT ABOUT 250 MILLION THE NUMBER OF SATELLITE LAUNCHES INVOLVED FOR THE LOCKHEEDKHRUNICHEVENERGIA INTERNATIONAL VENTURE WASN'T DISCLOSED HOWEVER RUSSIAN AND LOCKHEED OFFICIALS SAID AT A NEWS CONFERENCE THAT THE ENTERPRISE HAS FIRM ORDERS VALUED AT ABOUT 600 MILLION INCLUDING THE NEW EUROPEAN CONTRACT OTHER LAUNCH CONTRACTS HELD BY THE VENTURE INCLUDE SATELLITE LAUNCHES FOR LORAL CORP AND FOR MOTOROLA INC'S IRIDIUM COMMUNICATIONS SATELLITE NETWORK LOCKHEED ALSO IS BUILDING PARTS OF THE 66SATELLITE IRIDUM CONSTELLATION 9403170051 940317 CREDIT MARKETS BOND MARKET SHOWS STRENGTH FOR A SECOND DAY YIELD ON 30YEAR TREASURY DECLINES TO 679 BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK A REPORT SHOWING THAT INFLATIONARY PRESSURES REMAINED RELATIVELY SUBDUED IN FEBRUARY SPARKED A SECOND CONSECUTIVE DAY OF SOLID GAINS IN THE BOND MARKET THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY A POINT OR NEARLY 10 FOR A BOND WITH 1000 FACE VALUE TO 93 FOR A YIELD OF 679 DOWN FROM 687 ON TUESDAY WITH PRICES OF TREASURY SECURITIES HAVING REBOUNDED FROM LAST WEEK'S LOWS SOME INVESTORS WERE WILLING TO GO OUT ON A LIMB AND SAY THE WORST MAY BE OVER FOR NOW THE CATALYST FOR YESTERDAY'S RALLY WAS THE GOVERNMENT'S CONSUMER PRICE INDEX REPORT FOR FEBRUARY WHICH CAME IN AT EXPECTED LEVELS THE LABOR DEPARTMENT SAID CONSUMER PRICES ROSE 03 LAST MONTH FROM THE PREVIOUS MONTH BOTH WITH AND WITHOUT FOOD AND ENERGY PRICES FACTORED IN ANALYSTS SAID THE REPORT SHOWED THAT ALTHOUGH INFLATION MAY YET BE A PROBLEM DOWN THE ROAD IT'S NOT MUCH OF A THREAT NOW BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE CONSUMER PRICE INDEX REPORT WAS THE SECOND PIECE OF REASSURING NEWS ON THE INFLATION FRONT IN THE PAST TWO DAYS BOND PRICES HAD RISEN TUESDAY IN REACTION TO A REPORT SHOWING THAT PRODUCER PRICES ROSE JUST 01 IN FEBRUARY WHEN FOOD AND ENERGY COSTS WERE EXCLUDED WITH THE CPI FAILING TO PROVIDE AN EXCUSE TO RESUME SELLING THE BOND MARKET CARVED OUT NEW GAINS THE CPI CAME IN AS EXPECTED AND THE MARKET DECIDED TO TREND HIGHER SAID MATHEW ALEXY GOVERNMENT BOND MARKET STRATEGIST AT CS FIRST BOSTON CORP THE BULK OF THE BUYING WAS ATTRIBUTED TO DEALERS AND SPECULATIVE ACCOUNTS CLOSING OUT SHORT POSITIONS A SHORT SALE IS ESSENTIALLY A BET THAT PRICES WILL FALL IN WHICH A TRADER SELLS A BORROWED SECURITIES IN HOPES OF BEING ABLE TO REPLACE IT AT A LOWER PRICE AND POCKET THE DIFFERENCE THE STORY OF THE DAY WAS SHORT COVERING SAID JAY GOLDINGER A TRADER AT CAPITAL INSIGHT INC TRADERS ALSO REPORTED SOME BUYING OF TREASURY NOTES TIED TO MUNICIPAL DEFEASANCE FOR THE FIRST TIME IN A NUMBER OF WEEKS DEFEASANCE OCCURS WHEN A STATE OR LOCAL GOVERNMENT ISSUES NEW DEBT TO REFUND OLDER HIGHERINTEREST SECURITIES UNTIL THE OLDER DEBT CAN BE CALLED THE PROCEEDS FROM THE NEW ISSUANCE ARE INVESTED IN TREASURY SECURITIES MUNICIPAL DEFEASANCE WAS A MAJOR FACTOR CONTRIBUTING TO THE BOND MARKET'S RALLY LAST YEAR DURING 1993 MUNICIPALITIES ISSUED MORE THAN 100 BILLION OF REFUNDING DEBT AND MOST OF THAT CASH HEADED INTO THE TREASURY MARKET BUT WITH THE SHARP INCREASE IN INTEREST RATES SO FAR THIS YEAR DEFEASANCE BUYING SLOWED TO A TRICKLE TRADERS AND INVESTORS WERE IMPRESSED BY THE MARKET'S ABILITY TO TURN HIGHER ON WHAT WAS ESSENTIALLY NEUTRAL INFLATION NEWS ZANE BROWN HEAD OF FIXED INCOME AT LORD ABBETT & CO SAID YESTERDAY'S PRICE ACTION REFLECTED A CHANGE IN SENTIMENT PRIOR TO TUESDAY ANY NEWS THAT COULD POSSIBLY BE INTERPRETED AS NEGATIVE WAS SEEN THAT WAY MR BROWN SAID BUT NOW HE SAID WE MAY BE SEEING A RETURN TO INVESTING ON FUNDAMENTALS RATHER THAN THE SELLING FRENZY THAT CHARACTERIZED THE LAST FEW WEEKS MR GOLDINGER OF CAPITAL INSIGHT SAID THE SELLERS SIMPLY EXHAUSTED THEMSELVES THE MARKET GREW TIRED OF GOING DOWN AND THE MOMENTUM JUST SLOWED HE SAID THE MARKET IS SOLD OUT MR BROWN OF LORD ABBETT SAID MORE INVESTORS MAY SOON BE DRAWN BACK INTO THE BOND MARKET IF SUSTAINED THE GAINS OF THE LAST TWO DAYS COULD BE THE STABILITY THAT BUYERS HAVE BEEN WAITING FOR HE SAID SO FAR WHAT WE'VE SEEN IS AN ABSENCE OF SELLING AND SOME SHORT COVERING HE SAID AT SOME POINT VERY CLOSE TO WHERE WE ARE NOW WE WILL START TO ATTRACT CASH INTO THE MARKET BUT THE MARKET HAS ONE MORE SIGNIFICANT HURDLE TO CLEAR DUE OUT AT MIDMORNING TODAY IS THE PHILADELPHIA FEDERAL RESERVE'S REPORT ON LOCAL BUSINESS CONDITIONS A SHARP GAIN EARLIER THIS YEAR IN THE INFLATION COMPONENT OF THE PHILADELPHIA FED INDEX WAS ONE OF THE REASONS FOR THE BOND MARKET'S TUMBLE AS A RESULT TRADERS WILL CAREFULLY COMB THROUGH THE REPORT MR BROWN HOWEVER WAS NOT TOO WORRIED THE ECONOMY MAY BE GROWING BUT IT DOESN'T HAVE TO GROW WITH HIGHER INFLATION HE SAID WE STILL BELIEVE THAT LONGTERM INTEREST RATES WILL END THIS YEAR SLIGHTLY LOWER THAN WHERE THEY BEGAN THE YEAR THE CORPORATE BOND NEWISSUE MARKET SHOWED SIGNS OF LIFE YESTERDAY AFTER OVER A MONTH IN A COMA THANKS TO SHARPLY RISING INTEREST RATES ISSUERS TOOK ADVANTAGE OF A MARKET PERCEIVED AS RELATIVELY STABLE SYNDICATE OFFICIALS SAID ABOUT 161 BILLION OF DEBT WAS SOLD DURING WHAT MANY BELIEVED IS A WINDOW OF OPPORTUNITY WHETHER OR NOT THE STORM HAS PASSED WE'LL HAVE BLUE SKIES FOR A FEW DAYS ONE SYNDICATE OFFICIAL SAID FOR EXAMPLE FEDERAL EXPRESS 1994 PASSTHROUGH TRUST SOLD 377 MILLION OF PASSTHROUGH CERTIFICATES IN THREE PARTS THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO THE TRUST IS A SPECIALPURPOSE UNIT SET UP TO LEASE 13 AIRCRAFT BACK TO FEDERAL EXPRESS CORP IF FEDERAL EXPRESS WERE TO EXPERIENCE SEVERE FINANCIAL PROBLEMS THE TRUST WOULD NOT BE AFFECTED THE DEAL WAS ORIGINALLY EXPECTED TO BE LAUNCHED ABOUT TWO WEEKS AGO BUT WAS POSTPONED WHEN INTEREST RATES BEGAN RISING NOTED BOB HENNING A MANAGING DIRECTOR FOR AIRCRAFT FINANCING AT FEDERAL EXPRESS WE WERE PREPARED TO BRING THE DEAL BUT DUE TO THE VOLATILITY IN THE MARKET WE DECIDED TO WAIT HE SAID THE DEAL WAS LAUNCHED YESTERDAY AFTER THE MARKET STABLIZED HE SAID OTHER DEALS PRICED INCLUDED FORD MOTOR CREDIT CO'S 500 MILLION THREEYEAR NOTE OFFERING CITICORP'S 200 MILLION OFFERING OF 10YEAR SUBORDINATED NOTES AND PENNSYLVANIA POWER & LIGHT CO'S 250 MILLION TWOPART DEBT OFFERING AND THREEPART PREFERRED STOCK OFFERING TOTALING 80 MILLION FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO TRADING IN THE INVESTMENTGRADE MARKET CONTINUED LIGHT WITH YIELD SPREADS WIDENING BY ABOUT 002 PERCENTAGE POINT MUCH OF THE SELLING WAS FROM DEALERS LOOKING TO LIGHTEN INVENTORIES ONE TRADER SAID JUNKBOND PRICES ROSE ABOUT 1/2 POINT IN LIGHT TRADING ONE TRADER NOTED IT WAS THE FIRST TIME IN ABOUT THREE WEEKS THAT THE MARKET SAW BUYING ACTIVITY NWA INC'S 8 5/8 COUPON BONDS MATURING IN 1996 ROSE 25 POINTS OR 25 FOR A BOND WITH A 1000 FACE VALUE TO 94 THE YIELD DROPPED TO 1159 FROM 129 NWA'S BONDS WERE REACTING TO NEWS THAT ITS PARENT NORTHWEST AIRLINES WAS EXPECTED TO PRICE ITS INITIAL PUBLIC STOCK OFFERING AS SOON AS TODAY THE PRICING IS EXPECTED EVEN AFTER THE LIKELY PRICE PER SHARE WAS CUT TO 13 TO 14 FROM 19 TO 21 THE BONDS OF USAIR BENEFITED FROM NORTHWEST AIRLINES' NEWS AND TRADED UP IN SYMPATHY ONE TRADER SAID USAIR INC'S 10 GUARANTEED NOTES MATURING IN 2003 ROSE TWO POINTS OR 20 FOR A BOND WITH A 1000 FACE VALUE TO 85 THE YIELD DROPPED TO 1299 FROM 135 USAIR IS A UNIT OF USAIR GROUP INC LATE IN THE DAY ITT FLOORPLAN RECEIVABLES MASTER TRUST 19941 PRICED 1 BILLION OF FLOATINGRATE ASSETBACKED CERTIFICATES THE CERTIFICATES WERE PRICED AT 99954726 TO YIELD 37725 INITIALLY THE CERTIFICATES WILL FLOAT 020 PERCENTAGE POINT ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE MUNICIPAL BONDS RECORDED GAINS OF AS MUCH AS 1/2 POINT WITH CALIFORNIA'S 6 GENERAL OBLIGATION BONDS DUE IN 2024 UP 1/4 POINT IN LATE TRADING ONE ISSUE THAT DREW PLENTY OF BUYERS WAS PENNSYLVANIA'S 4911 MILLION FIRST SERIES OF 1994 IMPROVEMENT UNLIMITEDTAX BONDS A GOLDMAN SACHS & CO GROUP REOFFERED THE BONDS AT YIELDS RANGING FROM 305 IN 1995 TO 575 IN 2013 AND 2014 THE PENNSYLVANIA ISSUE WAS SNAPPED UP BY SUCH BUYERS AS PROPERTY AND CASUALTY COMPANIES AND INTERMEDIATE BOND FUNDS A GOLDMAN SACHS UNDERWRITING SPECIALIST SAID BONDS DUE IN 200709 WERE RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE BALANCE OF THE BONDS WERE RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE MUNICIPAL MARKET'S RISE WAS ENCOURAGING FOLLOWING RECENT SALES TRIGGERED BY THE FEDERAL RESERVE'S TIGHTENING EARLY LAST MONTH TRADERS SAID MORTGAGE SECURITIES MOVED HIGHER AS SOME INSTITUTIONAL INVESTORS RETURNED TO THE MARKETPLACE IT WAS A FAIRLY ACTIVE RETAIL DAY SAID A TRADER ON THE MORTGAGE DESK AT A PRIMARY DEALER IN NEW YORK RETAIL BUYERS MARKET LINGO FOR THOSE CUSTOMERS OUTSIDE THE DEALER COMMUNITY SUCH AS MUTUAL FUNDS WERE RESPONDING TO NEWS THAT CONSUMER PRICES EDGED UP ONLY SLIGHTLY LAST MONTH AS WELL AS WHAT WAS PERCEIVED AS SOME BARGAINS IN THE SECONDARY MORTGAGE SECURITY MARKET AMONG PRICES OF 7 SECURITIES FOR APRIL DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ROSE 16/32 TO 98 10/32 FEDERAL HOME LOAN MORTGAGE CORP GOLDS AND FEDERAL NATIONAL MORTGAGE ASSOCIATION EACH ROSE 16/32 TO 98 23/32 AND 98 17/32 RESPECTIVELY 9403170050 940317 TECHNOLOGY BRIEF APPLIED LASER SYSTEMS INC SEMAPHORE ACQUISITION PLAN WILL BE ANNOUNCED TODAY APPLIED LASER SYSTEMS INC IN MEDFORD ORE TODAY WILL ANNOUNCE A DEAL TO BUY SEMAPHORE COMMUNICATIONS CORP IN SANTA CLARA CALIF A SMALL BUT INFLUENTIAL MAKER OF DATASECURITY TECHNOLOGY BACKED BY XEROX CORP APPLIED WILL PAY ONE MILLION SHARES OF ITS COMMON STOCK NOW WORTH 49 MILLION PLUS UP TO 5 MILLION WORTH OF ADDITIONAL STOCK IF SEMAPHORE MEETS FINANCIAL GOALS AFTER THE ACQUISITION THE SELLERS ARE XEROX'S VENTURECAPITAL ARM WHICH OWNS 77 OF SEMAPHORE AND SEMAPHORE EMPLOYEES APPLIED'S SHARES CLOSED AT 49375 A SHARE UP 625 CENTS IN TRADING ON THE NASDAQ STOCK MARKET THE COMPANY YESTERDAY ANNOUNCED A PACT TO BUY THE ASSETS OF QUADRAX CORP A MAKER OF THERMOPLASTIC MATERIALS IN PORTSMOUTH RI FOR STOCK WITH AN INDICATED VALUE OF ABOUT 15 MILLION 9403170049 940317 BUSINESS BRIEF CATERPILLAR INC DIESELENGINE JOINT VENTURE PLANNED WITH CHINESE FIRM CATERPILLAR INC SAID IT PLANS TO BUILD DIESEL ENGINES IN CHINA THROUGH A JOINT VENTURE PACT WITH SHANGHAI DIESEL ENGINE CO CHINA'S LEADING DIESEL ENGINE MAKER TERMS OF THE JOINT VENTURE THE PEORIA ILL COMPANY'S FIRST MANUFACTURING PARTNERSHIP WITH A CHINESE FIRM WEREN'T DISCLOSED BUT CATERPILLAR WILL HAVE A 55 STAKE AND CONTRIBUTE TECHNOLOGICAL EXPERTISE AS WELL AS CASH THE ENGINES WILL BE SOLD THROUGHOUT CHINA CATERPILLAR SELLS ABOUT 37 BILLION OF ENGINES ANNUALLY WORLDWIDE 9403170048 940317 SEC PROPOSES RULES FOR REGULATING INVESTORS' ADVISERS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION PROPOSED NEW RULES FOR INVESTMENT ADVISERS INCLUDING A REQUIREMENT THAT ADVISERS' CLIENTS RECEIVE INDEPENDENT REPORTS ABOUT ACTIVITY IN THEIR ACCOUNTS THE RULE CALLING FOR INDEPENDENT REPORTS IS INTENDED TO HELP INVESTORS AVOID THE LOSSES THAT BEFELL CLIENTS OF STEVEN WYMER A CALIFORNIABASED ADVISER WHO HAS ADMITTED THAT HE PURPOSELY KEPT ACCOUNT REPORTS AWAY FROM CLIENTS TO CONCEAL LOSSES EXCEEDING 100 MILLION THE RULE PROPOSAL IS ALSO INTENDED TO BREAK UP A LOGJAM BETWEEN HOUSE AND SENATE VERSIONS OF LEGISLATION THAT WOULD TOUGHEN SEC STANDARDS FOR INVESTMENT ADVISERS AND MORE IMPORTANTLY TO THE AGENCY RAISE ADVISERS' REGISTRATION FEES SPECIFICALLY TO PAY FOR MORE SEC INSPECTORS THE HOUSE VERSION OF THE LEGISLATION IS MUCH TOUGHER THAN THE SENATE VERSION AND THE SEC'S HOPES FOR A COMPROMISE HAVE BEEN DWINDLING BY USING ITS OWN AUTHORITY TO ENACT SOME OF THE CONTROVERSIAL HOUSE PROVISIONS THE SEC BELIEVES A COMPROMISE IS MORE LIKELY THE RULES PROPOSED YESTERDAY BY THE AGENCY SPECIFICALLY ADDRESS SITUATIONS IN WHICH CLIENTS GIVE ADVISERS FULL DISCRETION TO MAKE INVESTMENT DECISIONS IN SUCH CASES THE CLIENTS' ASSETS ARE TYPICALLY HELD BY A THIRDPARTY CUSTODIAN THE SEC PROPOSAL WOULD PROHIBIT INVESTMENT ADVISERS FROM STRIKING AGREEMENTS WITH THE CUSTODIANS OF INVESTORS' ASSETS TO FUNNEL ALL ACCOUNT STATEMENTS TO THE ADVISERS THE RULE ALSO WOULD PROHIBIT ADVISERS FROM MAKING ANY TRANSACTIONS ON BEHALF OF CLIENTS WITHOUT REASONABLY BELIEVING THAT THE CLIENT HAD RECEIVED ACCOUNT STATEMENTS FROM THE CUSTODIAN AT LEAST QUARTERLY ENABLING THE CLIENT TO SEE ANY QUESTIONABLE INVESTMENT ACTIVITY A SEPARATE PROPOSAL WOULD PROHIBIT INVESTMENT ADVISERS FROM MAKING INVESTMENT RECOMMENDATIONS THAT ARE UNSUITABLE FOR CLIENTS A DUTY THAT HAS BEEN IMPOSED BY COURTS BUT NEVER BEFORE BY THE SEC A SIMILAR PROPOSAL IN THE HOUSE BILL HAS BEEN CRITICIZED BY THE SECURITIES INDUSTRY ACCORDING TO ROBERT PLAZE ASSISTANT DIRECTOR OF THE SEC'S DIVISION OF INVESTMENT MANAGEMENT THE SEC EXPECTS TO HEAR SOME OF THE SAME DURING THE 60 DAYS THAT IT WILL COLLECT COMMENTS BEFORE ENACTING A FINAL RULE MR PLAZE SAID THE SEC HOPES TO HIRE 180 MORE INSPECTORS FOR INVESTMENT ADVISERS AND MUTUAL FUNDS WITH SOME OF THE MONEY REQUESTED IN PRESIDENT CLINTON'S FISCAL 1995 BUDGET THAT BUDGET CALLS FOR A 3096 MILLION APPROPRIATION FOR THE AGENCY NO OTHER SINGLE PROGRAM AT THE SEC IS IN AS DIRE A NEED OF RESOURCES AS IS THE INVESTMENTMANAGEMENT REGULATION PROGRAM SEC CHAIRMAN ARTHUR LEVITT SAID IN TESTIMONY YESTERDAY BEFORE A SUBCOMMITTEE OF THE HOUSE APPROPRIATIONS COMMITTEE THE SEC CURRENTLY OVERSEES 20000 INVESTMENT ADVISERS MANAGING CLIENT ASSETS TOTALING 96 TRILLION THE SEC CAN'T CONTINUE TO INSPECT INVESTMENT ADVISERS ONLY ONCE EVERY 27 YEARS AS IS THE CASE AT PRESENT MR LEVITT SAID THAT'S TANTAMOUNT TO NO INSPECTION 9403170047 940317 INTERNATIONAL BRIEF AMERICAN EXPRESS CO CUTS IN EUROPE WORK FORCE WILL TOTAL 900 JOBS OR 9 AMERICAN EXPRESS CO SAID IT WILL REDUCE ITS EUROPEAN WORK FORCE BY 900 PEOPLE OVER THE NEXT 18 MONTHS THE CUTS WILL AFFECT BACKOFFICE JOBS AT THE COMPANY'S LARGEST UNIT AMERICAN EXPRESS TRAVEL RELATED SERVICES A SPOKESMAN IN LONDON SAID THE 900 JOBS REPRESENT 9 OF THE UNIT'S WORK FORCE IN EUROPE THE SPOKESMAN SAID JOBS WILL BE ELIMINATED THROUGHOUT EUROPE POSSIBLY HEAVILY IN GERMANY BRITAIN WILL GAIN JOBS HOWEVER BECAUSE AS PART OF A CONSOLIDATION OF BACKOFFICE FUNCTIONS THE COMPANY PLANS TO CREATE 390 NEW JOBS IN BRIGHTON THE SPOKESMAN SAID HE SAID THAT SOME PEOPLE FROM THE CONTINENT WILL RELOCATE THERE THE PURPOSE OF THE REDUCTIONS IS TO REDUCE OPERATING COSTS AND STREAMLINE OPERATIONS THE SPOKESMAN SAID ADDING THAT THE ACTION WON'T REQUIRE ANY RESTRUCTURING CHARGE 9403170045 940317 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO VIDEO VIEWING IS WORK SOME FIND AS MORE UNSOUGHT TAPES CROSS THEIR DESKS VIDEOTAPES SENT TO OFFICES TOUTING NEW PRODUCTS WORKSHOPS AND EVEN VENTURECAPITAL DEALS ARE PROVING USEFUL ESPECIALLY IN SUCH FIELDS AS ADVERTISING CABLE TV AND PHARMACEUTICALS WALT FARNETH OF MEDICAL ARTS PHARMACY IN PITTSBURGH USUALLY WATCHES ALL 15 OR SO BUSINESSRELATED VIDEOS HE GETS A YEAR TED SANN OF AD AGENCY BBDO NEW YORK SAYS I LOOK AT VIDEOTAPES AS MUCH AS I DO PAPER BUT OTHER REACTIONS ARE MIXED JOAN STEUER OF CHOCOLATE MARKETING INC IN LOS ANGELES SAYS VIDEOS CAN BE USEFUL AND TIMESAVING IF THEY ARE UNDER THREE MINUTES EDMONIA EVANS A HOUSTON PHARMACIST LIKES VIDEOS SHOWING HOW MEDICAL DEVICES WORK BUT DOESN'T ALWAYS HAVE TIME TO WATCH ON THE JOB AND OFTEN MUST TAKE THEM HOME CHARLES WILSON A HOUSTON VETERINARIAN SHUNS VIDEO MAIL LIKENING IT TO A COMMERCIAL YOU HAVE TO SIT THROUGH RICHARD KELLY OF CAMBRIDGE ASSOCIATES IN CONNECTICUT ADVISES CLIENTS MAILING TAPES TO LABEL THEM WITH SHORTERTHANACTUAL RUNNING TIMES MERLOT BY MAIL WINERIES LOOK TO SERVE UP WINE AND MORE VIA CATALOGS MAILORDER WINE BECOMES MORE PREVALENT AS MORE STATES ALLOW INTERSTATE SHIPMENTS TO INDIVIDUALS SUTTER HOME ST HELENA CALIF STARTED A MAILORDER BUSINESS JUST OVER A YEAR AGO WHILE KENDALLJACKSON SANTA ROSA CALIF UNCORKED ITS CATALOG LAST FALL IT KEEPS THEIR NAME IN FRONT OF THE CUSTOMER SAYS RICH CARTIERE OF THE WINE BUSINESS MONTHLY SUTTER HOME'S CATALOG FEATURES MORE SELECTIONS THAN VINO WITH GOODS LIKE PASTA SAUCES AND JAMS PROVING POPULAR LESS THAN 10 OF ITS ORDERS WHICH AVERAGE 75 ARE FOR WINE ADAM STRUM OF WINE ENTHUSIAST MAGAZINE SAYS SMALL WINERIES ALSO RESORT TO DIRECT MAIL AS ATTRITION AMONG DISTRIBUTORS MEANS FEWER CHANNELS FOR THEIR WINE SINCE 1986 12 STATES HAVE SIGNED RECIPROCAL PACTS ALLOWING SHIPMENTS TO EACH OTHER SAYS THE WINE INSTITUTE A SAN FRANCISCO TRADE GROUP A FEW MORE LIKE IOWA DON'T HAVE SUCH PACTS BUT PERMIT DIRECT MAILING THE PRICE IS RIGHT SOME GRADUATE SCHOOLS SAY AFTER CUTTING TUITION THIS FALL THE TUITION FOR THE MBA PROGRAM AT LEHIGH UNIVERSITY BETHLEHEM PA WILL DROP 22 TO 15750 WE'VE FOUND A REALLY HIGH DEGREE OF PRICE SENSITIVITY AMONG STUDENTS SAYS JAMES W SCHMOTTER DEAN OF THE BUSINESS SCHOOL CLARK UNIVERSITY WORCESTER MASS OFFERS A TUITIONFREE FIFTH YEAR FOR THOSE IN ITS FIVEYEAR COMBINED BACHELOR'S AND MASTER'S DEGREE PROGRAMS IF STUDENTS HAVE A B+ AVERAGE FIFTHYEAR TUITION IS USUALLY 17500 TUITIONCUTTING IS UNUSUAL FOR GRADUATE SCHOOLS SAYS DAVID MERKOWITZ OF THE AMERICAN COUNCIL ON EDUCATION WASHINGTON BUT HE EXPECTS TO SEE MORE EXPERIMENTS LIKE THESE GIVEN SCHOOLS' CONCERNS OVER COSTS AND STUDENT RETENTION FOR BUSINESS SCHOOLS EBBING COMPANY FUNDS FOR WORKERS IN PARTTIME PROGRAMS ADDS TO THE PROBLEM IN 1992 705 OF FIRSTYEAR MBA STUDENTS RECEIVED COMPANY SUPPORT DOWN FROM 86 IN 1985 ACCORDING TO SURVEYS FROM THE GRADUATE MANAGEMENT ADMISSION COUNCIL THE COUNCIL LAUNCHES A LOAN PROGRAM FOR PARTTIME MBA STUDENTS HOW MUCH FOR THE LUCK OF THE IRISH EXACTLY 2095 AT EMERALD ENTERPRISES A NEW JERSEY FLORAL SHIPPING FIRM IT WILL SHIP A THREEINCH POT OF CLOVER BRED TO SPROUT LEAVES OF FOUR LEAFLETS ON 39 OF ALL THE STEMS IN ITS LIFETIME THE CLOVER WAS DEVELOPED BY A UNIVERSITY OF FLORIDA BREEDER PRINT PUBLICATIONS ABOUT COMPUTERS POST STRONG CIRCULATION GAINS SAYS MAGAZINE AUDITOR BPA INTERNATIONAL NEW YORK CIRCULATION FOR 32 COMPUTER MAGAZINES WAS UP 23 AT YEAREND 1993 THE CATEGORY HAD GAINS OF 11 AND 9 IN 1992 AND 1991 NAFTA HOUSING CAN BE PRICEY RELOCATING US EXECUTIVES FIND PHH HOMEQUITY A WILTON CONN RELOCATION FIRM SAYS THE AVERAGE RENT PAID BY A TRANSFEREE FOR A THREEBEDROOM HOME IN MEXICO CITY IS 3500 COMPARED WITH 1800 IN TORONTO AND IN THE NEW YORK METROPOLITAN AREA LARGE WINTER BILLS PUT THE HEAT ON UTILITIES TO AID STRAPPED CUSTOMERS WITH THE AVERAGE RESIDENTIAL BILL THIS WINTER 50 HIGHER THAN IN 1993 BALTIMORE GAS & ELECTRIC LETS CUSTOMERS PAY 70 OF THEIR FEBRUARY TAB AND SPREAD THE REST OVER THE NEXT FEW MONTHS APPLICATIONS TO THIS AND ITS BUDGETPAYMENT PLAN MORE THAN DOUBLE IN JANUARY KENTUCKY'S LOUISVILLE GAS & ELECTRIC WAIVED LATE FEES CONSOLIDATED EDISON IN NEW YORK SAYS 10 MORE CONSUMERS ARE SEEKING DEFERRED PAYMENTS THAN LAST YEAR MEANWHILE FUNDING FOR PRIVATE LOWINCOME AID PLANS IS SLUGGISH THE ENERGY ASSISTANCE FOUNDATION FUNDED PARTLY BY ILLINOIS POWER POSTS A 1 RISE IN DONATIONS WHILE VIRGINIA POWER SAYS DONATIONS FELL 3 PEOPLE ALREADY GAVE TO OTHER DISASTERS LIKE THE MIDWEST FLOODS SAYS THE UTILITY'S VIRGINIA BOARD BUT THE WINTER IS A PLUS FOR UTILITIES DESPITE OVERDUE BILLS SAYS GLORIA QUINN OF EDISON ELECTRIC INSTITUTE IN THE FIRST NINE WEEKS OF 1994 ELECTRICITY USAGE ROSE 5 OVER THE SAME PERIOD LAST YEAR FOR FISCAL 1995 FUNDING FOR THE FEDERAL ENERGY AID PROGRAM FACES CUTS OF 225 MILLION TO 745 MILLION FROM 148 BILLION BRIEFS MAPS OFF THE BEATEN PATH PROFESSOR HIGBEE'S STREAM MAP OF NEW YORK CHARTS MORE THAN 65000 MILES OF STREAMS AND OVER 1200 INLAND LAKES FOR TERRA NOTSO FIRMA THE NEW ENGLAND GOVERNORS' CONFERENCE READIES SAND AND GRAVEL RESOURCE MAPS FOR THE REGION'S SIX STATES 9403170044 940317 TECHNOLOGY & HEALTH JONES INTERNATIONAL TO BEGIN PUBLISHING CDROM LESSONS TITLES TO ACCOMPANY CLASSES ON TV AS PART OF MOVE INTO THE SOFTWARE BUSINESS BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JONES INTERNATIONAL LTD SAID IT WILL START PUBLISHING INTERACTIVE CDROMBASED LESSONS THIS YEAR TO ACCOMPANY CLASSES ON ITS EDUCATIONAL CABLETV NETWORK THE MIND EXTENSION UNIVERSITY WITH A GOAL OF MORE THAN A DOZEN INTERACTIVE TITLES BY THE END OF 1995 THE EFFORT WILL ACCELERATE THE ENTRY OF JONES ONE OF THE LARGEST OPERATORS OF CABLE SYSTEMS IN THE US INTO THE SOFTWARE BUSINESS MOREOVER IN A BID TO EXPAND THE REACH OF THE VIDEO UNIVERSITY JONES SAID IT PLANS TO OPEN FIVE ADMINISTRATIVE CAMPUSES WORLDWIDE TO HANDLE ENROLLMENT BILLING AND PROGRAM DEVELOPMENT THE CAMPUSES WILL BE IN THE US EUROPE ASIA AFRICA AND SOUTH AMERICA MIND EXTENSION PROGRAMMING IN FOREIGN COUNTRIES COULD INCLUDE VIDEOTAPED CLASSES FROM LOCAL UNIVERSITIES AS WELL AS SHARED PROGRAMMING JONES SAID A LAUNCH DATE FOR THE NEW CENTERS HASN'T BEEN SET BUT IT PLANS TO ESTABLISH A HEADQUARTERS FOR THE UNIVERSITY COLLEGE IN DENVER WHERE JONES IS BASED TO HOUSE SATELLITE UPLINKS AND AN ADMINISTRATION BUILDING THE MOVES ARE PART OF A PLAN BY THE COMPANY'S CHAIRMAN GLENN JONES TO ELECTRONICALLY CONNECT TV VIEWERS AROUND THE WORLD TO UNIVERSITY TEACHERS AND CLASSROOMS TODAY THE SIXYEAR OLD MIND EXTENSION UNIVERSITY THE EDUCATION NETWORK REACHES 26 MILLION VIEWERS AND AIRS COURSES FROM 26 AFFILIATED COLLEGES IN THE US FOR CREDIT AND DEGREES ABOUT 36000 VIEWERS ARE ENROLLED STUDENTS MR JONES HOPES TO EXPAND THE LINE OF CDROM OFFERINGS EACH YEAR WITH NEW STUDY AIDS AND ULTIMATELY STANDALONE CLASSES ONE DAY YOU WILL BE ABLE TO DISSECT A DIGITAL FROG SAYS MR JONES OR YOU MIGHT BE ABLE TO DO A CHEMISTRY EXPERIMENT WITHOUT BLOWING UP THE LAB IT'S A NEW FRONTIER MR JONES SAID THE COMPANY WILL PUBLISH MANY COMPACT DISK TITLES ITSELF AND COPUBLISH OTHERS THE FIRST PRODUCT THE COMPANY PLANS TO SELL IS A CDROM VERSION OF A DICTIONARY OF CABLE TERMINOLOGY THE WORKING TITLE INFORMATION INFRASTRUCTURE DICTIONARY STUDENTS WOULD BUY THE DISKS AND BOOKS FROM MIND EXTENSION UNIVERSITY FOR PRICES RANGING FROM 30 TO 50 A PRICE COMPARABLE TO BOOKS THE COMPANY SAYS BUT THE DISKS MUST BE PLAYED ON EXPENSIVE CDROMBASED INTERACTIVE PLAYERS IN THE FUTURE AS DIGITAL TECHNOLOGY EVOLVES SUCH INTERACTIVE PROGRAMMING WILL LIKELY BE SENT OVER CABLE SYSTEMS TOO DESPITE THE COSTS MR JONES SAYS I CAN DELIVER EDUCATION CHEAPER THAN TRADITIONAL UNIVERSITIES AT A PROFIT AND STILL PAY MY TAXES TO HELP PAY FOR THIS AGGRESSIVE PLAN JONES WILL RELY PARTLY ON CAPITAL FROM ITS NEW PARTNER BCE TELECOM INTERNATIONAL INC THE CANADIAN TELECOMMUNICATIONS GIANT WHICH PAID 400 MILLION FOR A 30 STAKE IN JONES INTERCABLE INC THE CABLE SUBSIDIARY IN DECEMBER AS PART OF THAT DEAL BCE WILL PUT UP AN ADDITIONAL 18 MILLION TO BUY A 15 STAKE IN JONES EDUCATIONAL NETWORKS LTD THE PARENT OF MIND EXTENSION UNIVERSITY THE COMPANY'S FORAY INTO DIGITAL PUBLISHING WILL BE HEADED BY BERNARD LUSKIN WHO RECENTLY LEFT HIS POST AS CHIEF EXECUTIVE OF PHILLIPS INTERACTIVE MEDIA TO BECOME CHIEF EXECUTIVE OF JONES INTERACTIVE SYSTEMS INC A BOOK ON DISK IS THE SAME AS A BOOK ON PAPER SAYS MR LUSKIN 9403170043 940317 FLEET FINANCIAL GROUP UNIT SETTLES LENDINGBIAS SUIT AUGUSTA GA A FLEET FINANCIAL GROUP INC UNIT AGREED TO SETTLE A CLASSACTION LAWSUIT ALLEGING THAT HUNDREDS OF BLACK HOMEOWNERS IN GEORGIA WERE VICTIMS OF DISCRIMINATION BECAUSE THEIR MORTGAGE INTEREST RATES WERE MUCH HIGHER THAN THOSE OF WHITE BORROWERS THE LOANS WERE ORIGINATED BY A GROUP OF SMALL MORTGAGE BROKERS THEN SOLD TO FLEET FINANCE INC A UNIT OF FLEET PROVIDENCE RI THE AGREEMENT IS THE LATEST IN A SERIES OF COURT SETTLEMENTS AND OTHER INITIATIVES BY FLEET TO ADDRESS CHARGES BY BLACK PEOPLE AND LOWINCOME BORROWERS THAT THE BANK HAD VIOLATED FAIRLENDING RULES THE PROPOSED SETTLEMENT WHICH REQUIRES STATE COURT APPROVAL OFFERS CERTAIN BLACK BORROWERS LOWERED INTEREST RATES IN SOME CASES AND CASH PAYMENTS AND FORGIVENESS OF SOME DEBT IN OTHERS THE VALUE OF THE SETTLEMENT ISN'T SPELLED OUT IN THE AGREEMENT APPROVED BY A SUPERIOR COURT JUDGE HERE AND ATTORNEYS SAID THAT THE PACT STIPULATED THAT NEITHER SIDE COULD COMMENT FLEET ADMITS NO WRONGDOING IN THE SETTLEMENT CLASS MEMBERS IN THE CASE HAVE UNTIL JUNE 17 TO FILE OBJECTIONS AND A JULY 18 SUPERIOR COURT HEARING WAS SET TO ASSESS THE SETTLEMENT'S FAIRNESS 9403170042 940317 GM UNION REACH ACCORD THAT MAY SETTLE STRIKE DETROIT GENERAL MOTORS CORP REACHED A TENTATIVE LABOR AGREEMENT THAT COULD END A STRIKE AT TWO DAYTON OHIO BRAKE PLANTS THE STRIKE HAD ALREADY IDLED TWO ASSEMBLY PLANTS THE STRIKE WAS PROVOKED BY GM'S PROPOSAL TO STOP PRODUCING A BRAKE CALIPER IN DAYTON AND INSTEAD BUY IT FROM AN OUTSIDE SUPPLIER WITH LOWER LABOR COSTS THE UNITED AUTO WORKERS UNION SAID AS MANY AS 650 JOBS COULD BE LOST BY THE ACTION NEITHER SIDE WOULD SAY HOW THE CALIPER DEBATE WAS RESOLVED BUT A JOINT STATEMENT FROM BOTH COMPANY AND UNION SAID THE SETTLEMENT WOULD INCREASE JOB SECURITY FOR DAYTON WORKERS THE 3000 WORKERS IN DAYTON WERE TO REMAIN ON STRIKE THIS MORNING PENDING THE OUTCOME OF A 10 AM EST RATIFICATION VOTE ON THE TENTATIVE AGREEMENT ASSUMING THE CONTRACT IS RATIFIED THE DAYTON PLANTS WILL RESUME FULL PRODUCTION ON THE SECOND SHIFT A GM SPOKESMAN SAID THE STRIKE SHUT DOWN GM'S FORT WAYNE IND TRUCK PLANT WHICH PRODUCES ITS HOTSELLING FULLSIZE PICKUP TRUCK AND GM'S LANSING MICH ASSEMBLY OPERATIONS WHICH BUILD THE PONTIAC GRAND AM THE BUICK SKYLARK AND THE OLDSMOBILE ACHIEVA IN ADDITION GM SAID IT HALTED ITS MEDIUMDUTY TRUCK LINE IN JANESVILLE WIS THOUGH IT KEPT THE REST OF THE FACILITY RUNNING A TOTAL OF 7900 ASSEMBLY WORKERS WERE SENT HOME BECAUSE OF THE STRIKE 9403170040 940317 BUSINESS BRIEF READING & BATES CORP COMPANY TO JOIN DEEPTECH IN GULF OF MEXICO VENTURE READING & BATES CORP SAID IT SIGNED A LETTER OF INTENT WITH DEEP TECH INTERNATIONAL FOR A JOINT VENTURE TO PROVIDE FLOATING PRODUCTION SYSTEMS FOR THE OIL AND NATURALGAS INDUSTRY IN THE GULF OF MEXICO READING & BATES AN OFFSHORE DRILLINGSERVICES COMPANY BASED IN HOUSTON SAID THE VENTURE WILL ACQUIRE AND OPERATE SEMISUBMERSIBLE DRILLING VESSELS THAT IT WILL CONVERT FOR USE AS FLOATING PRODUCTION SYSTEMS IT SAID DEEPTECH A CLOSELY HELD HOUSTON ENERGY COMPANY WILL IMMEDIATELY CONTRIBUTE ONE OF THE VESSELS TO THE VENTURE AND READING & BATES WILL LATER CONTRIBUTE AN EQUIVALENT VESSEL READING & BATES SAID EACH COMPANY WILL HAVE A 50 INTEREST IN THE VENTURE TERMS OF THE AGREEMENT WEREN'T DISCLOSED BUT A SPOKESMAN FOR READING & BATES SAID OFFSHORE VESSELS ARE VALUED AT BETWEEN 12 AND 45 MILLION EACH IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE READING & BATES SHARES CLOSED AT 6375 UP 25 CENTS OR 41 9403170039 940317 INTERNATIONAL BRIEF TARMAC PLC OVERHAUL SET FOR US UNIT REDUCING OVERHEAD BY 20 TARMAC PLC SAID IT IS OVERHAULING ITS US OPERATIONS WHICH WILL RESULT IN OVERHEAD SAVINGS OF 20 THE UNITED KINGDOM BUILDINGMATERIALS AND CONSTRUCTION COMPANY IS ALSO PUMPING 100 MILLION 149 MILLION OVER THREE YEARS INTO A US CAPITALINVESTMENT PROGRAM DESIGNED TO RAISE PRODUCTIVITY AND PROFITABILITY THE COMPANY SAID THE DECISION FOLLOWS A REVIEW OF ITS US OPERATIONS THAT WAS BEGUN LAST NOVEMBER TARMAC AMERICA THE COMPANY'S US UNIT HAS OPERATIONS IN QUARRY PRODUCTS READYMIX CONCRETE AND CEMENT PRIMARILY ON THE EAST COAST 9403170038 940317 BUSINESS BRIEF EVANS & SUTHERLAND COMPUTER CORP TRIPOS UNIT TO BE SPUN OFF TO HOLDERS VIA STOCK PAYOUT EVANS & SUTHERLAND COMPUTER CORP SALT LAKE CITY ANNOUNCED PLANS TO SPIN OFF ITS TRIPOS INC SUBSIDIARY THROUGH A SPECIAL DIVIDEND OF TRIPOS STOCK TO SHAREHOLDERS OF THE PARENT COMPANY IN A SECURITIES AND EXCHANGE COMMISSION FILING THE COMPANIES SAID THAT EACH EVANS & SUTHERLAND SHAREHOLDER WILL RECEIVE IN A TAXFREE DISTRIBUTION ONE SHARE OF TRIPOS COMMON STOCK FOR EVERY THREE SHARES OF EVANS & SUTHERLAND COMMON STOCK THE PROPOSED SPINOFF IS EXPECTED TO BE COMPLETED THIS SPRING EVANS & SUTHERLAND IS A COMPUTER SYSTEMS AND SOFTWARE CONCERN TRIPOS A 92EMPLOYEE COMPANY BASED IN ST LOUIS SELLS SOFTWARE USED IN THE PHARMACEUTICAL INDUSTRY IT EARNED 444000 ON SALES OF 179 MILLION IN 1993 OUT OF THE PARENT COMPANY'S TOTAL PROFITS OF 18 MILLION OR 22 CENTS A SHARE ON SALES OF 1422 MILLION THE COMPANIES SAID ON THE NASDAQ STOCK MARKET EVANS & SUTHERLAND CLOSED AT 18375 UP 375 CENTS 9403170037 940317 BUSINESS BRIEF PHARMHOUSE CORP LETTER OF INTENT TO ACQUIRE ALL FOR A DOLLAR INC IS SIGNED PHARMHOUSE CORP A HEALTH AND BEAUTY CARE DISCOUNT RETAILER SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE THE ALL FOR A DOLLAR INC CLOSEOUT RETAIL CHAIN IN A STOCK TRANSACTION VALUED AT ABOUT 127 MILLION ACCORDING TO THE AGREEMENT ANNOUNCED AFTER THE MARKET'S CLOSE EACH SHARE OF ALL FOR A DOLLAR WILL BE EXCHANGED FOR 04173 SHARE OF PHARMHOUSE THE SPRINGFIELD MASS COMPANY HAS ABOUT 6951090 SHARES OUTSTANDING IN NASDAQ TRADING ALL FOR A DOLLAR CLOSED AT 2125 A SHARE UP 125 CENTS AND PHARMHOUSE CLOSED AT 4375 UP 125 CENTS PHARMHOUSE WHICH OPERATES 14 STORES IN THE MIDATLANTIC AREA REPORTED A NET LOSS OF 21 MILLION OR 98 CENTS A SHARE ON REVENUE OF 72 MILLION FOR THE NINE MONTHS ENDED OCT 30 ALL FOR A DOLLAR OPERATES 168 RETAIL CLOSEOUT STORES WHERE ITEMS ARE SOLD FOR 1 EACH IN THE NORTHEAST IT REPORTED A LOSS OF 1 MILLION OR 15 CENTS A SHARE ON SALES OF 448 MILLION FOR THE NINE MONTHS ENDED OCT 2 THE PROPOSED TRANSACTION EXPECTED TO BE COMPLETED BY SUMMER OF 1994 IS CONDITIONED UPON A NUMBER OF FACTORS INCLUDING THE CONTINUED DUE DILIGENCE OF BOTH COMPANIES THE EXECUTION OF MUTUALLY ACCEPTABLE AGREEMENTS AND APPROVAL BY BOTH COMPANIES' BOARDS AND SHAREHOLDERS 9403170036 940317 MARKETING BRIEF DOW CHEMICAL CO DRUG UNIT STARTS PROGRAM TO HELP SMOKERS KICK HABIT HOPING TO REINVIGORATE FLAGGING NICOTINE PATCH SALES MARION MERRELL DOW INC LAUNCHED A MARKETING PROGRAM THAT INCLUDES GIVING SMOKERS PERSONAL PEP TALKS BY PHONE TO HELP THEM QUIT SMOKERS WHO ENROLL IN THE PROGRAM CALLED NICODERM COMMITTED QUITTER'S PERSONAL SUPPORT PLAN RECEIVE PRINTED MATERIAL INCLUDING A PERSONALIZED CALENDAR AND POSTCARDS FROM MARION MERRELL A KANSAS CITY MOBASED UNIT OF DOW CHEMICAL CO TWICE DURING THE PROGRAM THEY RECEIVE PHONE CALLS FROM THE PROGRAM'S REPRESENTATIVES TO CHECK ON THEIR PROGRESS AND GET THEM BACK ON THE PROGRAM IF THEY HAVE FALTERED THE PROGRAM IS THE LATEST EXAMPLE OF PHARMACEUTICAL COMPANIES GETTING DIRECTLY INVOLVED IN PATIENT CARE TO BOOST SALES ALTHOUGH NICODERM HAS 46 OF THE PATCH MARKET ITS NEW PRESCRIPTIONS IN FEBRUARY WERE 68000 DOWN FROM A PEAK OF 345000 IN MARCH 1992 ACCORDING TO HEMANT SHAH AN INDEPENDENT ANALYST 9403170035 940317 BUSINESS BRIEF UNITED PARCEL SERVICE OF AMERICA FIRM WILL NOW GUARANTEE ONTIME OVERSEAS DELIVERY UNITED PARCEL SERVICE OF AMERICA INC SAID IT WILL OFFER ONTIME GUARANTEES ON ITS INTERNATIONAL DELIVERIES MATCHING SIMILAR RECENT COMMITMENTS BY FEDERAL EXPRESS PREVIOUSLY UPS OFFERED GUARANTEES ONLY ON DELIVERIES IN THE US AND CANADA EFFECTIVE MARCH 21 THE PACKAGEDELIVERY GIANT WILL GUARANTEE DELIVERY BY 5 PM THE SECOND BUSINESS DAY TO 46 COUNTRIES AND DELIVERY BY NOON TO 13 EUROPEAN COUNTRIES UPS WILL ALSO GUARANTEE OVERNIGHT DELIVERY OF LETTERS AND DOCUMENTS FROM MAJOR US CITIES TO 23 COUNTRIES FEDERAL EXPRESS RECENTLY ANNOUNCED IT WOULD GUARANTEE DELIVERY BY NOON THE SECOND BUSINESS DAY TO 50 CITIES IN EUROPE STEPPING UP FROM A PREVIOUS 5 PM DEADLINE THE MOVE IS PART OF UPS'S PUSH TO IMPROVE PACKAGETRACING THROUGH NEW TECHNOLOGY AND TO SPEED DELIVERY TIMES INDUSTRY ANALYSTS SAID CUSTOMERS ARE NOW DEMANDING MORE PRECISE DELIVERY TIMES TO TRACK THEIR INVENTORIES AND MATERIALS 9403170034 940317 BUSINESS BRIEF TENNECO INC UNIT FORMS VENTURE TO OPEN CARTON PLANT IN BUCHAREST TENNECO INC SAID A UNIT FORMED A JOINT VENTURE TO OPEN A FOLDING CARTON PLANT IN BUCHAREST TENNECO SAID THE VENTURE NAMED PCA ROMANIA SRL WAS FORMED BY ITS PACKAGING CORP OF AMERICA AND KRAFTCORR INC A CLOSELY HELD INTERNATIONAL MARKETER OF KRAFT LINERBOARD BASED IN GARDEN CITY NY THE VENTURE'S PLANT WILL PRODUCE FOLDING CARTONS AND LAMINATED CARTONS FOR THE ROMANIAN DOMESTIC MARKET AND OTHER CENTRAL EUROPEAN COUNTRIES TENNECO SAID ANOTHER OF THE UNIT'S JOINT VENTURES PCA BUDAFOK IN BUDAPEST WILL SUPPLY PAPERBOARD TO THE NEW PLANT WHICH IT EXPECTS WILL START UP WITHIN 30 DAYS AND BE AT FULL PRODUCTION BY THE END OF THE SECOND QUARTER IN ADDITION TO PACKAGING TENNECO HAS INTERESTS IN FARM AND CONSTRUCTION EQUIPMENT NATURALGAS PIPELINES SHIPBUILDING AUTOMOTIVE PRODUCTS AND CHEMICALS 9403170033 940317 MARKETING & MEDIA TIME TO LAUNCH IN STYLE CELEBRITYLIFESTYLE MONTHLY NEW YORK TIME INC SAID IT PLANS TO LAUNCH A MONTHLY CELEBRITYLIFESTYLE PUBLICATION IN JUNE ITS FIRST NEW BROADBASED MAGAZINE SINCE ENTERTAINMENT WEEKLY'S DEBUT FOUR YEARS AGO TIME THE MAGAZINE AND PUBLISHING ARM OF TIME WARNER INC SAID THE RESULTS OF THREE TEST ISSUES PROVED OVERWHELMINGLY THAT THERE'S A DEMAND FOR ITS NEW MAGAZINE CALLED IN STYLE THE FOURCOLOR MONTHLY WHICH FEATURES THE HOME DECOR FASHION BEAUTY AND CHARITIES OF WELLKNOWN PEOPLE IS TARGETED TO WOMEN AGED 18 TO 49 INITIALLY IT WILL BE COMPETING WITH FASHION AND LIFESTYLETYPE MAGAZINES A SPOKESWOMAN SAID THE MAGAZINE WILL HAVE A RATE BASE OF 500000 A FULLPAGE AD RATE OF 20000 AND A NEWSSTAND PRICE OF 295 MARTHA NELSON WHO WAS EDITOR OF THE THREE TEST ISSUES WILL BE MANAGING EDITOR WHILE ANN JACKSON WHO WAS GENERAL MANAGER OF THE TEST ISSUES WILL BE PUBLISHER 9403170032 940317 BUSINESS BRIEF INTERNATIONAL PAPER CO COMPANY INCREASES ITS STAKE IN NEW ZEALAND FIRM TO 24 INTERNATIONAL PAPER CO SAID IT BOUGHT 140 MILLION SHARES IN CARTER HOLT HARVEY LTD FOR ABOUT 289 MILLION INCREASING ITS STAKE IN THE NEW ZEALAND FORESTPRODUCTS COMPANY TO 24 INTERNATIONAL PAPER SAID IT PURCHASED THE SHARES FROM BRIERLEY INVESTMENTS LTD OF WELLINGTON NEW ZEALAND ITS PARTNER IN A JOINT VENTURE THAT WILL CONTINUE TO HOLD INTERNATIONAL PAPER'S SHARES AND BRIERLY'S REMAINING 8 STAKE INTERNATIONAL PAPER WHICH HELD ONE OF NINE DIRECTOR POSITIONS AT CARTER HOLT IN 1993 DECLINED TO SAY IF IT PLANNED ANY FURTHER INCREASE IN ITS STAKE INTERNATIONAL PAPER A PURCHASE NY PAPER AND PAPER PRODUCTS COMPANY HAD 1369 BILLION IN SALES IN 1993 CARTER HOLT HAD ABOUT 13 BILLION IN SALES FOR THE YEAR ENDING MARCH 31 1993 9403170031 940317 BUSINESS BRIEF TIDEWATER INC COMPANY PLANS TO REDEEM 472 MILLION IN DEBENTURES TIDEWATER INC SAID IT WILL REDEEM 472 MILLION IN DEBENTURES AND CONSEQUENTLY TAKE A CHARGE TO EARNINGS OF 77 MILLION OR 14 CENTS A SHARE IN ITS FISCAL FOURTH QUARTER ENDING MARCH 31 THE COMPANY SET APRIL 18 AS THE REDEMPTION DATE FOR ALL OF ITS 7 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2010 AND SAID IT WILL PAY 1014 FOR EACH 1000 OF PRINCIPAL PLUS ACCRUED INTEREST UNTIL APRIL 18 TIDEWATER SAID HOLDERS MAY CONVERT THE DEBENTURES INTO TIDEWATER COMMON STOCK AT A CONVERSION PRICE OF 25 A SHARE OR 40 SHARES FOR EACH 1000 OF PRINCIPAL TIDEWATER SHARES ROSE 375 CENTS TO CLOSE AT 20875 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TIDEWATER SAID THE FOURTHQUARTER CHARGE ASSUMES NONE OF THE DEBENTURES WILL BE CONVERTED INTO COMMON STOCK TIDEWATER A NEW ORLEANSBASED OWNER AND OPERATOR OF A FLEET OF VESSELS THAT SERVE THE OIL INDUSTRY SAID THIS REDEMPTION WILL MAKE THE COMPANY ESSENTIALLY DEBT FREE 9403170030 940317 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 5/16 HIGH 2 1/2 LOW 2 1/2 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 350 30 TO 32 DAYS 352 33 TO 44 DAYS 355 45 TO 59 DAYS 367 60 TO 69 DAYS 370 70 TO 89 DAYS 377 90 TO 119 DAYS 382 120 TO 149 DAYS 385 150 TO 179 DAYS 397 180 TO 209 DAYS 4 210 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 362 30 DAYS 373 60 DAYS 384 90 DAYS CERTIFICATES OF DEPOSIT 289 ONE MONTH 301 TWO MONTHS 317 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 401 SIX MONTHS BANKERS ACCEPTANCES 347 30 DAYS 359 60 DAYS 370 90 DAYS 383 120 DAYS 389 150 DAYS 393 180 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 766 60 DAYS 772 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 761 60 DAYS 770 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 9403170029 940317 REUTERS TO RESTRUCTURE GLOBEX TRADING SYSTEM BOCA RATON FLA REUTERS HOLDINGS PLC AGREED TO RESTRUCTURE THE GLOBEX AFTERHOURS FUTURESTRADING SYSTEM IN AN EFFORT TO BOOST ITS DISAPPOINTING TRADING VOLUME REUTERS AND TWO OF ITS PARTNERS IN GLOBEX THE CHICAGO MERCANTILE EXCHANGE AND PARISBASED MARCHE A TERME INTERNATIONAL DE FRANCE ANNOUNCED THE AGREEMENT AT A NEWS CONFERENCE FROM WHICH THE CHICAGO BOARD OF TRADE THE OTHER PARTNER IN GLOBEX WAS CONSPICUOUSLY ABSENT THE NEW AGREEMENT WILL GIVE FOREIGNFUTURES EXCHANGES SUCH AS THE PARIS EXCHANGE WHICH IS KNOWN AS MATIF A GREATER ROLE IN GOVERNING THE SYSTEM MATIF ACCOUNTS FOR ABOUT 85 OF THE GLOBEX FUTURESTRADING VOLUME REUTERS EXECUTIVES AND JOHN F SANDNER CHAIRMAN OF BOTH GLOBEX AND THE CHICAGO MERC HOPE THE AGREEMENT WILL ENTICE SUCH EXCHANGES AS THE LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE TO LIST THEIR FUTURES CONTRACTS ON THE SYSTEM REUTERS AND THE CBOT HAVE CLASHED REPEATEDLY OVER BOARD OF TRADE ACTIVITIES THAT SOME REUTERS EXECUTIVES FEEL COMPETE WITH GLOBEX STILL MR SANDNER AND ROSALYN WILTON REUTERS'S MANAGING DIRECTOR FOR TRANSACTION PRODUCTS SAY THEY WILL BE NEGOTIATING WITH CBOT EXECUTIVES TO INCLUDE IT IN THE RESTRUCTURED SYSTEM 9403170028 940317 MARKETING BRIEF SONY CORP REMAINING 50 OF RELATIVITY IS PURCHASED BY MUSIC UNIT IN A MOVE THAT REINFORCES ITS COMMITMENT TO DISTRIBUTING SMALLER ACTS SONY MUSIC ENTERTAINMENT INC HAS PURCHASED FOR AN UNDISCLOSED SUM THE 50 OF RELATIVITY ENTERTAINMENT DISTRIBUTION INC THAT IT DIDN'T ALREADY OWN RELATIVITY HOLLIS NY SPECIALIZES IN DISTRIBUTING RECORDS THAT TYPICALLY SELL FROM 5000 TO 400000 COPIES ALSO INCLUDED IN THE SALE IS RELATIVITY RECORDS WHICH FEATURES PERFORMERS SUCH AS STEVE VAI PETER FRAMPTON JOE SATRIANI COC LUCY'S FUR COAT AND THE BEATNUTS FOR THE FISCAL YEAR ENDING MARCH 31 RELATIVITY IS EXPECTED TO HAVE MORE THAN 65 MILLION IN SALES SONY MUSIC ENTERTAINMENT IS A WORLDWIDE UNIT OF SONY CORP THAT RECORDS AND DISTRIBUTES MUSIC ITS LABELS INCLUDE EPIC AND COLUMBIA 9403170027 940317 BUSINESS BRIEF ZEOS INTERNATIONAL LTD FIRM ABANDONS PLAN TO BUY RIVAL COMPUADD COMPUTER ZEOS INTERNATIONAL LTD SAID IT SCRAPPED A PLAN TO BUY COMPUADD COMPUTER CORP A COMPETITOR IN THE MAILORDER COMPUTER BUSINESS IN A JOIN STATEMENT THE TWO COMPANIES SAID THEY WERE UNABLE TO AGREE ON TERMS OF THE DEAL AND DECIDED TO END THEIR DISCUSSIONS ZEOS BASED IN MINNEAPOLIS IN JANUARY ANNOUNCED A NONBINDING LETTER OF INTENT TO BUY COMPUADD A PRIVATELY HELD COMPUTER COMPANY BASED IN AUSTIN TEXAS TERMS OF THE CASH AND STOCK DEAL WEREN'T DISCLOSED AT THE TIME ZEOS OFFICIALS COULDN'T BE REACHED TO COMMENT ON THE COLLAPSED DEAL WHICH WAS ANNOUNCED AFTER THE CLOSE OF NASDAQ STOCK MARKET TRADING ZEOS STOCK CLOSED UNCHANGED AT 3125 A COMPUADD SPOKESMAN DECLINED TO DETAIL WHY THE AGREEMENT COLLAPSED SAYING IT JUST DIDN'T PAN OUT WHEN IT WAS ANNOUNCED THE ZEOSCOMPUADD COMBINATION WAS CITED BY SOME INDUSTRY ANALYSTS AS EVIDENCE OF A CONSOLIDATION IN THE PERSONALCOMPUTER BUSINESS WHICH HAS BEEN HIT HARD BY FALLING PRICES AND DECLINING PROFIT MARGINS 9403170026 940317 POLITICS & POLICY BILLS TO FOSTER LOCAL PHONE COMPETITION LIFT LIMITS ON BELLS CLEAR HOUSE PANELS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO HOUSE COMMITTEES PASSED SWEEPING TELECOMMUNICATIONS BILLS THAT WOULD ENCOURAGE COMPETITION IN THE LOCAL PHONE BUSINESS AND EVENTUALLY LIFT RESTRICTIONS ON THE SEVEN REGIONAL BELL COMPANIES THE BILLS REMAIN ON A FAST TRACK THROUGH THE HOUSE AND ARE EXPECTED TO COME UP FOR A VOTE ON THE HOUSE FLOOR THIS SPRING THE HOUSE ENERGY AND COMMERCE COMMITTEE PASSED TWO BILLS THE FIRST A COMPROMISE WORKED OUT BY COMMITTEE CHAIRMAN JOHN DINGELL D MICH AND JUDICIARY COMMITTEE CHAIRMAN JACK BROOKS D TEXAS WOULD REPLACE THE CONSENT DECREE THAT BROKE UP THE BELL SYSTEM IT WOULD ESTABLISH GUIDELINES FOR THE BELL COMPANIES TO ENTER THE LONGDISTANCE AND TELECOMMUNICATIONSEQUIPMENTMANUFACTURING BUSINESSES THE REGIONAL PHONE COMPANIES CURRENTLY ARE BARRED FROM BOTH BUSINESSES UNDER THE CONSENT DECREE THE SECOND BILLCOAUTHORED BY EDWARD MARKEY D MASS CHAIRMAN OF THE COMMERCE COMMITTEE'S TELECOMMUNICATIONS SUBCOMMITTEE AND THE PANEL'S RANKING REPUBLICAN REP JACK FIELDS OF TEXAS WOULD OPEN LOCAL TELEPHONE NETWORKS TO COMPETITION AND LET PHONE COMPANIES AND CABLETELEVISION COMPANIES COMPETE HEADTOHEAD PHONE COMPANIES CURRENTLY ARE RESTRICTED FROM PROVIDING CABLETV SERVICE WITHIN THEIR TELEPHONESERVICE TERRITORIES MEANWHILE THE HOUSE JUDICIARY COMMITTEE APPROVED THE BROOKSDINGELL BILL BUT WITH DIFFERENT AMENDMENTS THAN THOSE APPROVED BY THE COMMERCE COMMITTEE THE BIGGEST DIFFERENCES SURROUND TWO PROVISIONS OF THE COMPROMISE ONE WOULD LET THE BELLS PROVIDE INTRASTATE LONGDISTANCE SERVICE SO LONG AS STATE REGULATORS APPROVE THE OTHER WOULD LET THE BELLS BUY LONGDISTANCE SERVICE FROM AMERICAN TELEPHONE & TELEGRAPH CO AND OTHER LONGDISTANCE CARRIERS AND RESELL IT TO THEIR LOCAL PHONE CUSTOMERS THE COMMERCE COMMITTEE VERSION WHICH PASSED UNANIMOUSLY ON A VOICE VOTE DIDN'T CHANGE THOSE PROVISIONS SUBSTANTIALLY BUT STIPULATED THAT BELL COMPANIES WOULD HAVE TO CHARGE THEIR OWN LONGDISTANCE UNITS THE SAME FEES FOR COMPLETING CALLS OVER THE LOCAL PHONE NETWORK THAT NONAFFILIATED CARRIERS MUST PAY LAWMAKERS ALSO PASSED AN AMENDMENT THAT WOULD RESTRICT BELL COMPANIES' USE OF SENSITIVE DATA THEY OBTAIN ABOUT THEIR COMPETITORS' CUSTOMERS THIS HAS BEEN A BIG CONCERN OF PRIVACY ADVOCATES AND POTENTIAL BELL COMPETITORS WHO WORRY THAT THE PHONE COMPANIES COULD USE CALLING DATA TO CHERRYPICK THEIR BEST CUSTOMERS THE JUDICIARY COMMITTEE ADOPTED AMENDMENTS THAT WOULD MAKE IT TOUGHER FOR THE BELL COMPANIES TO ENTER THE INTRASTATE AND RESALE NICHES OF THE LONGDISTANCE MARKET ITS VERSION STILL WOULD LEAVE IT UP TO STATE REGULATORS TO DECIDE WHEN A BELL COMPANY SHOULD BE ALLOWED TO ENTER THE INTRASTATE MARKET BUT THE JUSTICE DEPARTMENT COULD FILE SUIT TO STOP THE ACTIVITY WITHIN 120 DAYS IF IT BELIEVES THE PHONE COMPANY COULD IMPEDE LONGDISTANCE COMPETITION THE PANEL ALSO SAID THE JUSTICE DEPARTMENT WOULD HAVE TO CONCLUDE THAT A BELL COMPANY WOULD POSE NO SUBSTANTIAL POSSIBILITY IT WOULD HARM LONGDISTANCE COMPETITION BEFORE BEING ALLOWED TO RESELL LONGDISTANCE SERVICE BOTH THE JUDICIARY COMMITTEE AND COMMERCE COMMITTEE VERSIONS OF THE BROOKSDINGELL BILL WOULD LET THE REGIONAL BELL COMPANIES PROVIDE LONGDISTANCE SERVICE IN CONNECTION WITH ANY CABLETV OFFERINGS BUT THE TWO PANELS DIFFERED ON LETTING THE BELLS OFFER LONGDISTANCE SERVICE IN CONNECTION WITH INFORMATION SERVICES WIRELESS COMMUNICATIONS AND SIGNALING SYSTEMS THAT ROUTE CALLS THROUGH THE PHONE NETWORK DIFFERENCES BETWEEN THE TWO BILLS ARE LIKELY TO BE WORKED OUT OVER THE NEXT FEW WEEKS BY REPS BROOKS AND DINGELL AT YESTERDAY'S SESSION MR DINGELL SIGNALED THE LONGDISTANCE ISSUES COULD BE RESOLVED THESE ARE QUESTIONS WE WILL CONTINUE TO ADDRESS AS THE LEGISLATION GOES FORWARD HE SAID MEANTIME THE COMMERCE COMMITTEE PASSED SEVERAL AMENDMENTS TO THE MARKEYFIELDS BILL INCLUDING ONE THAT WOULD GIVE TELEVISION BROADCASTERS FLEXIBILITY TO DECIDE HOW THEY WILL USE THE NEW SPECTRUM THEY WILL BE ASSIGNED FOR HIGHDEFINITION TELEVISION BROADCASTERS HAVE BEEN BALKING AT THE IDEA OF CONVERTING TO HIGHDEFINITION TRANSMISSION BECAUSE OF THE COST THE LEGISLATION WOULD REQUIRE THE FEDERAL COMMUNICATIONS COMMISSION TO SET A MINIMUM NUMBER OF HOURS THAT BROADCASTERS WOULD HAVE TO TRANSMIT HIGHDEFINITION SIGNALS BUT IT ALSO WOULD LET TV STATIONS DEVELOP NEW SOURCES OF REVENUE BY TRANSMITTING DATA AND OTHER NONTRADITIONAL SERVICES BROADCASTERS THAT OFFER SERVICES FOR A FEE WOULD BE REQUIRED TO PAY THE GOVERNMENT A ROYALTY THE MARKEYFIELDS BILL WOULD OVERHAUL THE WAY LOCAL PHONE COMPANIES ARE REGULATED LARGELY ABANDONING RATEOFRETURN REGULATION IN FAVOR OF CONTROLLING PRICES AMONG OTHER THINGS IT WOULD ESTABLISH A JOINT BOARD OF FEDERAL AND STATE OFFICIALS TO OVERSEE A FUND THAT WOULD COLLECT AND DISTRIBUTE FUNDS TO KEEP PHONE SERVICE AFFORDABLE FOR RESIDENTIAL CUSTOMERS 9403170024 940317 BIG 3 HIT SNAG OVER A BATTERY FOR ELECTRIC CAR QUESTIONS ARISE ON GM TIES TO DEVELOPER OF DEVICE MEETING IS CALLED OFF BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP'S NEW PARTNERSHIP WITH A BATTERY DEVELOPER MAY BE CREATING CRACKS IN DETROIT'S JOINT EFFORT TO PRODUCE A BREAKTHROUGH BATTERY FOR ELECTRIC CARS A MEETING SET FOR YESTERDAY OF EXECUTIVES REPRESENTING GM FORD MOTOR CO AND CHRYSLER CORP TO DISCUSS PROGRESS OF THEIR US ADVANCED BATTERY CONSORTIUM WAS CANCELED BECAUSE OF QUESTIONS CONCERNING GM'S LINKUP WITH ENERGY CONVERSION DEVICES INC ECD A TINY TROY MICH CONCERN HAS RECEIVED 18 MILLION OF RESEARCH MONEY FROM THE CONSORTIUM THE WORRY IS THAT GM MAY HAVE GOTTEN SPECIAL ACCESS TO ECD TECHNOLOGY THAT COULD NEARLY DOUBLE AN ELECTRIC VEHICLE'S MEAGER DRIVING RANGE OF 70 TO 100 MILES BETWEEN CHARGES GM DECLINED TO COMMENT ON THE CANCELLED MEETING OR THE QUESTIONS BEING RAISED ELSEWHERE IN DETROIT WE ARE JUST BASICALLY INTERESTED IN WHAT THE GM DEAL IS AND WHAT THE ACCESS TO THE PARTNERS IS GOING TO BE SAID JOHN WALLACE THE DIRECTOR OF FORD'S ELECTRICVEHICLE PROGRAMS MR WALLACE SAID YESTERDAY'S MEETING WOULD HAVE FOCUSED ON WAYS TO COMMERCIALIZE TECHNOLOGIES CURRENTLY ON THE CONSORTIUM'S PLATE BUT THE MEETING SEEMED POINTLESS HE SAID WITH SO MANY OPEN QUESTIONS ABOUT THE GMECD DEAL ALTHOUGH FORD AND CHRYSLER SPOKESMEN DECLINED TO GO INTO FURTHER DETAIL AN INDIVIDUAL CLOSE TO THE CONSORTIUM'S DEALINGS SAID POSSIBLE ISSUES TO BE ADDRESSED INCLUDE WHETHER THE CONSORTIUM WILL BE ENTITLED TO A REFUND OF SOME OR ALL OF THE 18 MILLION RESEARCH GRANT TO ECD FOR HIS PART FORD'S MR WALLACE SAID THE DISPUTE DOESN'T SEEM LIKELY TO LEAD TO A BREAKUP OF THE CONSORTIUM BUT GM'S MOVE COULD PROMPT FORD AND CHRYSLER TO SEEK SIMILAR BATTERY DEALS OF THEIR OWN MOREOVER IT ISN'T CLEAR WHETHER GM'S MOVE TO LINK UP WITH ECD WILL SCUTTLE FURTHER TALKS ABOUT POSSIBLE JOINT MANUFACTURE OF AN ELECTRIC CAR BY THE BIG THREE FORD CHAIRMAN ALEX TROTMAN RAISED THAT IDEA LAST MONTH IN CHICAGO STILL STANFORD OVSHINSKY ECD'S CHAIRMAN WAS SURPRISED BY INDUSTRY REACTION TO HIS GM DEAL ANYONE WHO KNOWS US KNEW I WAS VERY SERIOUS ABOUT MAKING AN ALLIANCE HE SAID AND EXTREMELY SERIOUS ABOUT MAKING AN AMERICAN ALLIANCE LAST WEEK GM SAID IT WOULD HELP ECD MANUFACTURE AND COMMERCIALIZE ITS ADVANCED NICKELMETALHYDRIDE BATTERY THROUGH A JOINT VENTURE FORMER GM CHAIRMAN ROBERT C STEMPEL HELPED BRING ECD AND GM TOGETHER MR STEMPEL A CONSULTANT TO GM HAD JOINED THE ECD BOARD IN JANUARY BUT STEPPED DOWN WHEN THE JOINT VENTURE WAS ARRANGED THE CONFLICT COMES AT TIME WHEN THE CONSORTIUM'S PROGRESS IS BEING CLOSELY WATCHED BY THE CALIFORNIA AIR RESOURCES BOARD THE BOARD IN MAY IS TO HOLD A REVIEW TO DETERMINE WHETHER CALIFORNIA RULES REQUIRING A CERTAIN NUMBER OF ZEROEMISSION VEHICLES OR ELECTRICS TO BE SOLD IN 1998 IS STILL TECHNOLOGICALLY FEASIBLE THE BOARD'S TECHNICAL STAFF HAS ALREADY CITED ECD'S PROGRESS AS A REASON FOR OPTIMISM 9403170023 940317 INTERNATIONAL BRIEF PORSCHE AG GERMAN SPORTS CAR MAKER PRICES SHARES IN RIGHTS ISSUE GERMAN SPORTS CAR MANUFACTURER PORSCHE AG ANNOUNCED IT HAS PRICED SHARES IN ITS 1FOR4 RIGHTS ISSUE AT 575 MARKS 338 THE COMPANY PLANS TO ISSUE 175 MILLION MARKS 103 MILLION IN NOMINAL CAPITAL WITH EACH SHARE VALUED AT A NOMINAL 50 MARKS THAT EQUALS 350000 SHARES THE RIGHTS ISSUE THEREFORE WILL RAISE 20125 MILLION MARKS IN CASH BEFORE EXPENSES HOLDERS OF THE NEW SHARES WILL BE ENTITLED TO HALF OF ANY DIVIDEND PAID FOR THE FISCAL YEAR ENDING JULY 31 STUTTGART GERMANYBASED PORSCHE PAID PREFERRED SHAREHOLDERS A 250MARK DIVIDEND FOR THE PREVIOUS FISCAL YEAR THE SHARES ARE BEING OFFERED TO ALL HOLDERS OF COMMON AND PREFERRED SHARES VIA A CONSORTIUM LED BY DRESDNER BANK AG THE COMPANY SAID HALF OF THE SHARES WILL BE PURCHASED BY THE PORSCHE AND PIECH FAMILIES WHO OWN THE COMMON SHARES SUBSCRIPTION PERIOD IS MARCH 22 TO APRIL 7 SEPARATELY PORSCHE REVEALED THAT IT'S DEVELOPING TWO COMPLETELY NEW MODELS THIS DECADE IN A STRATEGY TO REPLACE ITS AGING SERIES OF LUXURY SPORTS CARS 9403170022 940317 INTERNATIONAL MESS AT LLOYD'S MAY HAVE A DARKER SIDE EVIDENCE SUGGESTS INSURER KNEW OF RISKS STEERED NEWCOMERS THAT WAY BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL LONDON DID LLOYD'S OF LONDON KNOWINGLY PLAY DOWN THE RISKS OF ASBESTOS AND POLLUTION LIABILITY POLICIES THAT IT WAS UNDERWRITING IN THE 1980S WHILE STEERING NEW INVESTORS INTO THESE OVERTLY RISKY INSURANCE LINES NEW EVIDENCE SUGGESTS IT MAY HAVE MUCH OF THE LLOYD'S SAGA IS KNOWN IN THE 1980S AS THE INSURER RAPIDLY OPENED ITS ONCEEXCLUSIVE MARKET TO NEW INVESTORS OR NAMES THOUSANDS RUSHED IN TO GET A PIECE OF THE ACTION BUT INSTEAD OF REAPING RICH PREMIUMS THE NEW NAMES OFTEN FOUND THEMSELVES BLINDSIDED BY ENORMOUS CLAIMS FROM RISKY POLICIES COVERING US POLLUTION AND ASBESTOS DAMAGES THE TALES OF WIDESPREAD FINANCIAL RUIN THAT FOLLOWED ARE WELL DOCUMENTED WHAT IS LESS WELL KNOWN IS THAT LOSSES AT LLOYD'S ALREADY TOTALING MORE THAN 55 BILLION 82 BILLION FOR THE YEARS 1988 TO 1990 ARE POISED TO BALLOON FED BY STILL MOUNTING ASBESTOS AND POLLUTION CLAIMS AS INVESTORS DELVE INTO THE REASONS FOR THEIR CRUSHING LOSSES THERE IS GROWING EVIDENCE THAT LLOYD'S INSIDERS THE SOCALLED WORKING NAMES INVESTORS BROKERS AGENTS AND UNDERWRITERS HAD EARLY WARNINGS OF THE LOOMING DISASTER WARNINGS THEY DID NOT SHARE WITH PROSPECTIVE INVESTORS IN HINDSIGHT THE 1980S ARE BEGINNING TO LOOK INCREASINGLY LIKE AN ERA WHEN LLOYD'S BROUGHT IN NEW INVESTORS TO TAKE ON HUGELY EXPENSIVE RISKS FROM ITS MORE ESTABLISHED NAMES US LAWYERS PROVIDED WORKING NAMES WITH EVIDENCE OF THE WORSENING ASBESTOS SITUATION MORE THAN A DOZEN YEARS AGO THE CHICAGO FIRM OF LORD BISSELL & BROOK FOR EXAMPLE RECOMMENDED IN A 1981 LETTER TO LLOYD'S SUBSTANTIAL RESERVE CHANGES BECAUSE OF HUGE INCREASES IN THE NUMBER OF ASBESTOS CLAIMS THE LETTER ADDED THAT EIGHT TO 11 MILLION US WORKERS HAD BEEN EXPOSED TO THE INSULATION MATERIAL A SUSPECTED CARCINOGEN A 1982 LETTER FROM LONDON ACCOUNTANTS NEVILLE RUSSELL TO THE MANAGER OF LLOYD'S AUDIT DEPARTMENT HELD OUT THE PROSPECT OF HUGE CLAIMS FROM ASBESTOSIS CONCLUDING IT WAS UNABLE TO QUANTIFY LLOYD'S FINAL LIABILITY WITH A REASONABLE DEGREE OF ACCURACY SUCH OPINIONS AND CORRESPONDENCE SURROUNDING THEM ARE ONLY GRADUALLY SEEPING INTO THE PUBLIC DOMAIN AND COMING TO THE ATTENTION OF THOSE TRYING TO UNDERSTAND THEIR LLOYD'S LOSSES BUT SOME 17000 CURRENT AND FORMER NAMES HAVE FORMED ACTION GROUPS TO PROTECT THEIR INTERESTS AND AN INCREASING NUMBER ARE RESORTING TO LEGAL ACTION AGAINST THEIR AGENTS AT LLOYD'S ALLEGING NEGLIGENCE PARLIAMENT GRANTED LLOYD'S IMMUNITY FROM LAWSUITS IN 1982 PARTLY BECAUSE OF ITS REPUTATION FOR EFFECTIVE SELFREGULATION BUT INVESTORS ARE ATTEMPTING TO GET A CASE HEARD IN EITHER A US OR EUROPEAN COURT THE WRITS RESPONSE GROUP REPRESENTING AS MANY AS 2500 REBELLIOUS NAMES PLANS TO SEEK A RULING FROM THE EUROPEAN COURT OF JUSTICE IN LUXEMBOURG THAT LLOYD'S BUSINESS PRACTICES VIOLATE EUROPEAN UNION COMPETITION LAWS IT WAS IN ASBESTOS IN PARTICULAR THAT LONGESTABLISHED LLOYD'S NAMES SEEM TO HAVE STEERED AWAY FROM INSURANCE LINES THAT WERE PEDDLED AGGRESSIVELY TO NEWCOMERS FROM 1984 TO 1988 WELL AFTER THE FIRST WARNINGS FROM LAWYERS AND ACCOUNTANTS WERE RECEIVED MARKET AGENTS OFTEN USHERED NEW INVESTORS DIRECTLY INTO SOME OF THE RISKIEST OF LLOYD'S MORE THAN 200 SYNDICATES CORRESPONDENCE AND LITIGATION INDICATES THE NEW NAMES OFTEN COULD NOT GET INTO THE SYNDICATES THEY DESIRED AS THESE ALREADY WERE FILLED BY ESTABLISHED NAMES WHO MAKE UP ABOUT 20 OF THE CURRENT TOTAL OF 18000 NAMES AND IN MANY CASES THE LOSSRIDDEN NAMES CLAIM THEY WERE PERSUADED BY LLOYD'S AGENTS TO JOIN SYNDICATES WHERE THE RISKS WERE NEVER MADE CLEAR LLOYD'S OFFICIALS SAY THE NEW NAMES WERE AWARE OF THE EXTRA RISKS ACCEPTED THEIR UNLIMITED LIABILITY AND MADE MONEY IN EARLIER YEARS FOR LLOYD'S THE SITUATION IS LIKELY TO GET WORSE BEFORE IT GETS BETTER IN ITS SEARCH FOR NEW CAPITAL THE INSURANCE MARKET OPENED UP TO CORPORATE INVESTORS LAST YEAR ATTRACTING A RELATIVELY MODEST 15 BILLION IN NEW MONEY THE RATING CONCERN STANDARD & POOR'S CORP HAS DECLINED TO RATE LLOYD'S AS AN INVESTMENT AND US INVESTORS IN GENERAL HAVE SHIED AWAY LLOYD'S HAS NEVER HAD CONSOLIDATED NUMBERS FOR ITS LIABILITIES BUT CHATSET A LONDONBASED CONSULTANCY AND PUBLISHING BUSINESS ESTIMATES THAT THE MARKET WOULD NEED AN ADDITIONAL 5 BILLION TO 87 BILLION TO CLOSE OUT EXISTING CLAIMS AND THAT THIS GAP IS STILL GROWING PART OF THE PROBLEM IS THAT AS THE RISKIEST POLICIES SOUGHT MORE REINSURANCE AND BROKERS SLICED OFF A PERCENTAGE OF REINSURANCE PREMIUMS RESERVES FOR PAYING OUT CLAIMS WERE BEING CONTINUALLY DIMINISHED ON TOP OF THAT A LOT OF NAMES ARE DECIDING TO DRAW A LINE REFUSING TO PAY OR CONTESTING CLAIMS ON THEIR ASSETS SAYS RICHARD SLOWE A LAWYER AT SJ BERWIN & CO WHO ACTS FOR THESE INVESTORS THUS THE MARKET ITSELF IS GOING TO HAVE TO FUND CLAIMS DURING THIS INTERREGNUM MR SLOWE ADDS LLOYD'S DEFENDS ITSELF ROBIN JACKSON LLOYD'S MARKET EXPERT ON ASBESTOS SAYS ACCUSATIONS THAT INSIDERS HAD BETTER KNOWLEDGE ABOUT ASBESTOS LIABILITIES AREN'T REALISTIC IF LLOYD'S PARTICIPANTS HAD REALLY BELIEVED THE WORST EARLY PROGNOSTICATIONS ABOUT ASBESTOS PRODUCED IN THE 1970S AND EARLY 1980S WE'D HAVE CLOSED DOWN THE INDUSTRY AND GONE OFF AND HIT GOLF BALLS HE SAYS AS FOR THE LOSSES SUFFERED BY NAMES MR JACKSON SAYS WE PAY ALL OUR PROFITS OUT THEREFORE WE HAVE TO CALL OUR LOSSES IN THE PROBLEM IS THAT NAMES HADN'T BUILT UP ENOUGH RESERVES MR JACKSON ADDS INDICATING THAT MORE ESTABLISHED NAMES IN RISKY SYNDICATES HAVE HAD YEARS OF GOOD PREMIUM INCOME IN COMMON WITH MANY AT LLOYD'S HE STRONGLY CRITICIZES THE HUGE AMOUNTS OF INSURANCE THAT ARE BEING USED TO PAY US LEGAL FEES SOME SAY 30 TO 40 OF TOTAL CLAIMS ARE GOING TO LAWYERS' FEES IN DISPUTES ABOUT ASBESTOS AND POLLUTION LITIGATION ONE US LAWSUIT CR LESLIE VS LLOYD'S OF LONDON FILED IN STATE COURT IN HOUSTON IN 1991 SHEDS SOME LIGHT ON THE CLAIMS OF THE NEWER NAMES IN THE SUIT MR LESLIE A TEXAS RESIDENT STATES HE SIGNED AN UNDERWRITINGAGENCY AGREEMENT WITH A LLOYD'S MANAGING AGENCY RW STURGE THAT AGENCY IN 1976 AND 1977 ARRANGED FOR MR LESLIE TO PARTICIPATE IN SIX OF ITS SYNDICATES AND THREE OTHERS MANAGED BY RHM OUTHWAITE AND POSGATE & DENBY AGENCIES LTD THE OUTHWAITE SYNDICATES WROTE REINSURANCE POLICIES ON ASBESTOS AND OTHER LONGTERM POLLUTION RISKS WHICH HAVE SUFFERED ESCALATING LOSSES THE LAWSUIT SAYS FURTHERMORE SEVERAL OTHER SYNDICATES THAT MR LESLIE PARTICIPATED IN HAVE HAD HUGE BUT STILL UNRESOLVED LOSSES LEAVING HIM EXPOSED TO INDEFINITE LIABILITIES IN BRIEFS FILED WITH THE COURT MR LESLIE MAINTAINS HE WASN'T TOLD THAT HE COULD BE SADDLED WITH SUCH INDEFINITE LIABILITIES AND THAT SUCH INFORMATION WAS EITHER OMITTED OR MISREPRESENTED BY LLOYD'S AND THOSE WHO SOLICITED HIS PARTICIPATION IN HIS COURT FILINGS MR LESLIE CLAIMS THAT LLOYD'S AND STURGE ALSO BREACHED THEIR FIDUCIARY DUTIES TO HIM WHEN THEY INCLUDED HIM IN OUTSIDER SYNDICATES WITH LLOYD'S APPROVAL STURGE SYNDICATES WERE TRANSFERRING POLICIES WITH EXTENSIVE LIABILITY EXPOSURE INTO OUTSIDER SYNDICATES THUS INSULATING INSIDER' MEMBERS OF THESE STURGE SYNDICATES FROM THE SAME RISKS BOTH LLOYD'S AND STURGE DENY CLAIMS IN THE SUIT FURTHERMORE LLOYD'S HAS CONSISTENTLY MAINTAINED THAT BRITISH COURTS ARE THE CORRECT FORUM FOR SUCH CASES BUT HAS THUS FAR FAILED TO GET THE US SUIT DISMISSED TO BE SURE IT ISN'T EASY TO SORT OUT EXACTLY WHO KNEW WHAT AND WHEN LLOYD'S AN ANOMALY IN BRITAIN'S INCREASINGLY REGULATED FINANCIAL SYSTEM IS SELFREGULATED AND HAS FEW DISCLOSURE REQUIREMENTS LLOYD'S VIEW OF ITS ASBESTOS EXPOSURE IS THAT THERE WERE CREDIBLE COMPETING THEORIES ABOUT THE EXTENT OF POTENTIAL ASBESTOS LOSSES THUS MANY AT LLOYD'S DISCOUNTED SUCH WORSTCASE SCENARIOS SOME THOUGH ARE CYNICAL ABOUT LLOYD'S PRACTICE OF INSURING ASBESTOS AND POLLUTION RISKS WHILE DRAWING IN MORE INVESTORS WHEN YOU BEGIN TO TALK ABOUT BILLIONS OF DOLLARS IN JUDGMENTS HONOR AND INTEGRITY GO OUT OF THE WINDOW SAYS EUGENE ANDERSON A NEW YORK LAWYER WHO HAS MADE A SUCCESSFUL PRACTICE OF PURSUING ASBESTOS CLAIMS IN US COURTS HE SAYS LLOYD'S AND ITS UNDERWRITERS WERE WHISTLING PAST THE CEMETERY IGNORING THE TRUE RISKS OF ASBESTOS AND POLLUTION 9403170021 940317 MOODY'S DOWNGRADES CABLEVISION DEBT CITES CASH FLOW CONCERNS NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED THE DEBT RATING OF CABLEVISION INDUSTRIES CORP ONE OF THE LARGEST US CABLE OPERATORS AFFECTING ABOUT 500 MILLION IN LONGTERM NOTES THE SERVICE LOWERED THE RATING FOR SENIOR NOTES DUE 2002 TO B FROM BAA AND ASSIGNED A B RATING TO ITS SENIOR DEBENTURES DUE 2008 MOODY'S SAID THE ACTIONS REFLECT ITS CONCERNS ABOUT CABLEVISION INDUSTRIES' HIGH LEVERAGE AND THE COMPANY'S VULNERABILITY TO RATE REGULATION BY THE FEDERAL COMMUNICATIONS COMMISSION MOODY'S SAID IT IS CONCERNED THAT CABLEVISION MAY NOT GENERATE THE LEVELS OF CASH FLOW PREVIOUSLY ANTICIPATED ROCCO COMMISSO CABLEVISION'S CHIEF FINANCIAL OFFICER SAID THAT WHILE CABLEVISION IS CONCERNED ABOUT THE FCC ACTION HE CONSIDERS MOODY'S DOWNGRADE TO BE INCONSISTENT WITH HIS COMPANY'S FINANCIAL PERFORMANCE HE NOTED THAT STANDARD AND POOR'S CORP ANOTHER RATING AGENCY UPGRADED THE SAME DEBT TO A DOUBLEBMINUS FROM SINGLEBPLUS LAST FALL AND REAFFIRMED THAT RATING EARLIER THIS MONTH 9403170020 940317 WHAT'S NEWS BUSINESS AND FINANCE A HOUSE HEALTH PANEL REJECTED A SERIES OF TAX AND PREMIUM INCREASES THAT WOULD SUBSIDIZE SMALL BUSINESSES AND ENRICH THE BENEFITS THAT WOULD BE PROMISED IN HEALTHCARE LEGISLATION LAWMAKERS TABLED A BID TO RAISE CIGARETTE TAXES TO 2 A PACK TO FINANCE SUBSIDIES FOR SMALL EMPLOYERS A BIG KEMPER SHAREHOLDER PUT PRESSURE ON THE COMPANY TO CONSIDER AN UNFRIENDLY 22 BILLION TAKEOVER OFFER FROM GE CAPITAL SOUTHEASTERN ASSET MANAGEMENT DISCLOSED THAT IT HOLDS AN 81 STAKE IN KEMPER AND SAID IT MAY SEEK TO HOLD NEGOTIATIONS TO ENHANCE SHAREHOLDER VALUE UAL'S PROPOSED 5 BILLION EMPLOYEE BUYOUT HIT A SNAG FORCING AIRLINE AND UNION LEADERS TO SCRAMBLE TO TRY TO GET THE DEAL BACK ON TRACK STILL ANALYSTS WERE HOPEFUL THAT UAL AND THE UNIONS WILL COMPLETE THE ACCORD NORTHWEST AIR IS CUTTING THE ASKING PRICE OF ITS 20 MILLIONSHARE IPO TO 13 TO 14 A SHARE SETTING BACK ONE OF THE BIGGEST PUBLIC OFFERINGS SET FOR 1994 CONSUMER PRICES ROSE 03 IN FEBRUARY FROM JANUARY SIGNALING A RELATIVELY LOW RATE OF INFLATION PRICES HAD BEEN UNCHANGED IN JANUARY THE CORE INFLATION RATE WAS ALSO UP 03 SEPARATELY HOUSING STARTS LAST MONTH ROSE 41 AFTER FALLING 22 IN JANUARY BOND PRICES SOARED ON EVIDENCE THAT INFLATION REMAINS IN CHECK THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE NEARLY A POINT WHILE ITS YIELD FELL TO 679 THE DOW JONES INDUSTRIALS FELL 144 POINTS TO 384815 THE ASSETS IN FIDELITY INVESTMENTS' MUTUAL FUND FOR DEVELOPINGCOUNTRY DEBT HAVE DROPPED MORE THAN 40 SINCE THE END OF JANUARY TWO HOUSE PANELS PASSED TELECOMMUNICATIONS BILLS THAT ENCOURAGE COMPETITION IN THE LOCAL PHONE BUSINESS AND LIFT RESTRICTIONS ON BABY BELLS MAJOR INSURERS AGREED TO PAY MORE IN THE SUPERFUND OVERHAUL IN EXCHANGE FOR GREATER ASSURANCE THAT LAWSUITS AGAINST THEM WILL BE REDUCED BORLAND IS CONSIDERING LAYOFFS AND MAY RAISE CAPITAL BY SELLING A MINORITY STAKE TO AN OUTSIDE INVESTOR US SURGICAL IS LAYING OFF 900 MORE WORKERS AS PART OF THE SURGICAL EQUIPMENT MAKER'S RESTRUCTURING PLAN THE COMPANY SAID IT EXPECTS TO RETURN TO PROFITABILITY BY THE SECOND QUARTER VIACOM TAPPED JONATHAN DOLGEN TO HEAD THE GROUP THAT WILL INCLUDE MOST OF PARAMOUNT PICTURES' OPERATIONS PEOPLE CLOSE TO THE SITUATION SAID HEINZ PLANS MORE MAJOR EXPANSIONS AND ACQUISITIONS IN GLOBAL FOOD SERVICE AND BABYFOOD BUSINESSES FIGGIE INTERNATIONAL PRESSED TWO KEY EXECUTIVES TO RESIGN PEOPLE CLOSE TO THE SITUATION SAID IT ALSO MOVED TO LIMIT THE POWER OF ITS CHAIRMAN KENDALL SQUARE AGREED TO SETTLE SHAREHOLDER LITIGATION THAT THREATENED THE SUPERCOMPUTER MAKER'S SURVIVAL GM'S NEW PARTNERSHIP WITH A SMALL BATTERY DEVELOPER MAY BE CREATING CRACKS IN DETROIT'S JOINT EFFORT TO PRODUCE A BATTERY FOR ELECTRIC CARS MERRILL LYNCH'S 1993 REVENUE FROM TRADING SWAPS AND DERIVATIVES SWELLED TO 761 MILLION A 57 JUMP FROM 1992 THE DERIVATIVE REVENUE REPRESENTED ABOUT A QUARTER OF MERRILL'S 292 BILLION IN 1993 PRINCIPAL TRANSACTIONS OR TRADING USING THE FIRM'S OWN CASH INVESTMENT ADVISERS MUST PROVIDE CLIENTS WITH INDEPENDENT REPORTS ABOUT ACTIVITY IN THEIR ACCOUNTS UNDER A PROPOSED SEC RULE TO HELP INVESTORS SCHRODERS POSTED RECORD EARNINGS FOR THE THIRD STRAIGHT YEAR HEIGHTENING SPECULATION THAT THE BRITISH MERCHANT BANK MAY SOON SEEK FULL CONTROL OF US AFFILIATE WERTHEIM SCHRODER THE US WITHHELD APPROVAL OF A JAPAN AIRLINES ROUTE APPLICATION PENDING TALKS ON A VARIETY OF AVIATION MATTERS US AIDES ARE PREPARING A COMPLAINT OVER JAPAN'S PRICECONTROL PLANS FOR MOSTLY USMADE MEDICAL PRODUCTS JEFFERIES'S STOCK JUMPED 31 IN THE WAKE OF THE BROKERAGE FIRM'S PLANS TO SELL A STAKE IN ITS AUTOMATED STOCK TRADING SUBSIDIARY THROUGH AN IPO BONDS LEHMAN BROTHERS TREASURY INDEX 535346 UP 4565 COMMODITIES OIL 1506 A BARREL UP 23 CENTS DOW JONES FUTURES INDEX 14557 OFF 024 SPOT INDEX 13273 UP 009 DOLLAR 10607 YEN UP 007 16885 MARKS OFF 00080 9403170019 940317 REVIEW & OUTLOOK EDITORIAL IN DEFENSE OF ARKANSAS IT'S TIME TO COME TO THE DEFENSE OF ARKANSAS RECENTLY MALIGNED WITH AN IMAGE OF A CLOSEKNIT POLITICAL CIRCLE OF MUTUAL BACKSCRATCHING IN THIS DEPARTMENT LITTLE ROCK HAS NOTHING ON WASHINGTON DC WITH WEBB HUBBELL LEAVING THE JUSTICE DEPARTMENT JAMIE GORELICK IS ABOUT TO ARRIVE MS GORELICK'S NOMINATION AS DEPUTY ATTORNEY GENERAL MAY BE VOTED ON IN THE JUDICIARY COMMITTEE TODAY WITH SENATORS ANXIOUS TO RUSH SOME HELP TO ATTORNEY GENERAL JANET RENO MS GORELICK SEASONED HER ADMINISTRATIVE EXPERIENCE THE PAST YEAR OR SO AS GENERAL COUNSEL OF THE DEFENSE DEPARTMENT BUT PRIOR TO THAT WAS A PARTNER IN MILLER CASSIDY LARROCA & LEWIN THIS FIRM MAY NOT BE FAMILIAR IN LITTLE ROCK BUT AMONG BELTWAY BIGWIGS ITS PHONE NUMBER IS POSTED RIGHT NEXT TO 911 MILLER CASSIDY IS TOTALLY NONPARTISAN HAVING HELPED RICHARD NIXON ON HIS PARDON AND ACCORDING TO QUIET RUMORS AS THE NATIONAL LAW JOURNAL PUT IT THE FIRM ADVISED RONALD REAGAN ON IRANCONTRA GOOD GOP CLIENTS ALSO INCLUDED EDWIN MEESE MICHAEL DEAVER AND FORMER ATTORNEY GENERAL RICHARD KLEINDIENST MS GORELICK HAS BEEN ACTIVE IN INTRABAR POLITICS RISING TO PRESIDENT OF THE DC BAR ASSOCIATION BUT SHE HAS FOUND TIME FOR HER SHARE OF HIGHPROFILE CASES MOST RECENTLY ON BEHALF OF CLARK CLIFFORD AND ROBERT ALTMAN HER PART OF THEIR LITIGATION HAS BEEN TRYING TO GET REIMBURSEMENT FOR THEIR LEGAL FEES FROM FIRST AMERICAN BANK WHERE THEY WORKED WHEN IT WAS SECRETLY OWNED BY THE BANK OF CREDIT & COMMERCE INTERNATIONAL OR BCCI IN A JANUARY 1993 LETTER TO A LAWYER FOR FIRST AMERICAN BANKSHARES SHE WROTE THAT HER CLIENTS HAD CERTIFIED THAT THEY ACTED AT ALL TIMES IN GOOD FAITH WITH RESPECT TO FIRST AMERICAN IN A MANNER CONSISTENT WITH THE BEST INTERESTS OF THE CORPORATION AND NEITHER OF THEM HAD ANY REASONABLE CAUSE TO BELIEVE THAT HIS CONDUCT WAS UNLAWFUL THEIR PROPER STEWARDSHIP OF FIRST AMERICAN HAS BEEN CONFIRMED REPEATEDLY BY FEDERAL AND STATE REGULATORS EXTENSIVE COMPANY AUDITS AND TESTIMONY OF BANK OFFICIALS MS GORELICK ARGUED THE BANK SHOULD PAY THEIR LEGAL FEES THEY HAVE SHE RELATED BEEN BILLED IN EXCESS OF 8 MILLION FOR LEGAL FEES AND EXPENSES BY THE LAW FIRMS OF SKADDEN ARPS SLATE MEAGHER & FLOM SKADDEN ARPS' AND DAVIS POLK & WARDWELL DAVIS POLK' THAT IS TO SAY THE ULTIMATE BENEFICIARIES OF MS GORELICK'S LETTER PROMINENTLY INCLUDED ROBERT FISKE INDEPENDENT COUNSEL FOR WHITEWATER WHO ALSO LED THE CLIFFORDALTMAN DEFENSE AT DAVIS POLK BY THE WAY MS GORELICK ALSO REPRESENTED SENATOR JOSEPH BIDEN CHAIRMAN OF THE COMMITTEE VOTING ON HER NOMINATION IN THE INVESTIGATION OF ANITA HILL LEAKS AND ORRIN HATCH RANKING MINORITY MEMBER HIRED ONE OF HER PARTNERS AT MILLER CASSIDY IN THE SENATE ETHICS COMMITTEE INVESTIGATION OF ALLEGATIONS THAT SOME ILLICIT INFLUENCE WAS AT WORK IN HIS 1990 FLOOR SPEECH DEFENDING BCCI NOW WE DO NOT SEE IN ANY OF THIS REASON TO DOUBT MS GORELICK'S PERSONAL ABILITIES OR INTEGRITY WE'D BE HAPPY TO SEE HER IN SOME OTHER GOVERNMENT JOB AT SOME OTHER TIME IF WE'RE IN HOT WATER WE'D BE MORE THAN HAPPY TO HAVE HER ON OUR SIDE MR ALTMAN WAS ACQUITTED IN TRIAL WE SHOULD ALSO MENTION THOUGH HE AND MR CLIFFORD REMAIN DEFENDANTS IN A CIVIL SUIT BY FIRST AMERICAN'S TRUSTEE AND THE ETHICS COMMITTEE RULED THAT SENATOR HATCH WAS KOSHER WITH ALL THAT SAID MS GORELICK'S EXPERIENCE AND PEDIGREE SEEM TO US PRECISELY THE OPPOSITE OF WHAT WE NEED ENTERING THE JUSTICE DEPARTMENT AT THIS PARTICULAR TIME WE ALSO SUGGEST CHAIRMAN BIDEN AND SENATOR HATCH SET UP A PHONE CALL WITH PAULA CASEY FRIEND OF BILL AND US ATTORNEY IN LITTLE ROCK AFTER TURNING DOWN PLEA BARGAIN ATTEMPTS FROM AND LAUNCHING THE PROSECUTION OF DAVID HALE THE FELLOW WHO SAID BILL CLINTON URGED HIM TO MAKE A FRAUDULENT LOAN MS CASEY ADMITTED SHE HAD A CONFLICT IN HANDLING WHITEWATER MATTERS BEFORE THE SENATORS CAST THEIR COMMITTEE VOTES MAYBE SHE CAN ADVISE THEM ON WHETHER THEY SHOULD RECUSE THEMSELVES 9403170018 940317 ENTERTAINING TALKS MAJOR TV NETWORKS DINOSAURS NO MORE TUNE IN TO NEW DEALS THEY SEE FUTURE IN CREATING SHOWS CONSIDER JOINING WITH PRODUCERS STUDIOS START OF A NEW GOLDEN AGE' BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL TALK ABOUT GALLOWS HUMOR DURING A PARTICULARLY BLEAK PERIOD FOR THE TELEVISION NETWORKS IN 1989 A COLLEAGUE GAVE HOWARD STRINGER THE PRESIDENT OF CBS INC'S BROADCAST GROUP A MOTORIZED TOY DINOSAUR IT SEEMED AN APT SYMBOL CBS AND ITS RIVALS ABC AND NBC WERE VIEWED AS GIANTS LUMBERING TOWARD EXTINCTION AT THE DAWNING OF A DAZZLING NEW MEDIA AGE CABLE AND HOME VIDEO WERE SIPHONING OFF VIEWERS AT AN ALARMING RATE AND INTERACTIVE MEDIA WERE JUST APPEARING ON THE HORIZON YET TODAY THE BIG THREE ARE HOT PROPERTIES AGAIN THEY HAVE PROVED THEMSELVES NOT ONLY VIABLE BUT THRIVING CONTENDERS THAT CAN HOLD ONTO BOTH A MASS AUDIENCE AND THEIR APPROXIMATE 9 BILLION SHARE OF THE 25 BILLION ANNUAL TV ADVERTISING PIE THEIR STRENGTH WAS EVIDENT DURING THE WINTER OLYMPICS COVERAGE THAT DREW RECORD RATINGS TO CBS EVEN ON NIGHTS WHEN THE WOMEN'S FIGURESKATING SOAP OPERA DIDN'T AIR THIS TRIUMPH SAYS CBS CHAIRMAN LAURENCE TISCH PROVES WHAT WE'VE BEEN SAYING ALL ALONG FREE TELEVISION IS HERE TO STAY WHILE THIS IS NO DOUBT TRUE MANY ON WALL STREET BELIEVE THAT WITHIN A FEW YEARS ALL THREE BROADCAST NETWORKS WILL HAVE CHANGED HANDS OR BECOME PART OF LARGER MEDIA ORGANIZATIONS SUCH A SCENARIO IS NOT ONLY POSSIBLE BUT LOGICAL SAYS JESSICA REIF AN ANALYST AT OPPENHEIMER & CO AS COMPANIES JOCKEY FOR POSITION ON THE SOCALLED INFORMATION SUPERHIGHWAY CBS ABC AND NBC ALL HAVE HAD CONVERSATIONS IN THE PAST TWO YEARS ABOUT BUYING SELLING OR MERGING AND THOUGH DEALS HAVE BEEN ELUSIVE WOULDBE PARTNERS CONTINUE TO CIRCLE TED TURNER OF TURNER BROADCASTING SYSTEM INC HAS RENEWED HIS QUEST TO PURCHASE A NETWORK THOUGH SOURCES SAY HIS AMBITIONS ARE BEING THWARTED FOR NOW BY HIS MAJOR SHAREHOLDERS INCLUDING TIME WARNER INC MR TURNER HAS HELD RECENT TALKS WITH GENERAL ELECTRIC CO'S NBC ABOUT BUYING THE NETWORK SAY PEOPLE FAMILIAR WITH THE DISCUSSIONS MEANWHILE NOW THAT QVC INC HAS LOST THE BIDDING FOR PARAMOUNT COMMUNICATIONS INC QVC CHAIRMAN BARRY DILLER WHO STARTED THE FOX FOURTH NETWORK IS WEIGHING HIS OPTIONS AND HE DOESN'T RULE OUT INTEREST IN ONE OF THE ORIGINAL THREE PARAMOUNT ITSELF HAD HELD TALKS WITH BOTH NBC AND CAPITAL CITIES/ABC INC BEFORE AGREEING TO BE ACQUIRED BY VIACOM INC AT THE RIGHT PRICE MANY THINK WALT DISNEY CO WOULD ACQUIRE A NETWORK SPECULATION ABOUT A MERGER WITH CBS HAS BEEN RAMPANT THOUGH EXECUTIVES AT BOTH COMPANIES DISMISS IT AND SOME ON WALL STREET SEE A TELECOMMUNICATIONS COMPANY EVENTUALLY JUMPING IN TO BUY OR INVEST IN A NETWORK CAPITAL CITIES/ABC AND NBC ADMIT THEY WOULD CONSIDER SOME FUTURE RECONFIGURATION WE'RE ALWAYS LOOKING SAYS CAPITAL CITIES/ABC CHAIRMAN THOMAS MURPHY WE WOULD BE INTERESTED IN WHATEVER MADE SENSE FOR OUR STOCKHOLDERS BUT THE CAUTIOUS MR MURPHY STRESSES HE IS AFTER GOOD DEALS NOT DEALS THE COMPANY'S JUSTANNOUNCED 10FORONE STOCK SPLIT COULD MAKE IT EASIER TO DO AN ACQUISITION INVOLVING STOCK SOME ANALYSTS NOTE NBC PRESIDENT ROBERT C WRIGHT SAYS HIS NETWORK IS PART OF A VERY LARGE COMPANY THAT IS ALWAYS LOOKING FOR GROWTH HE ACKNOWLEDGES THAT NBC HAS HELD TALKS WITH ALL OF THE STUDIOS ALL OF THE MAJOR PROGRAMMING ENTITIES ABOUT VARIOUS DEALS MOSTLY INVOLVING PROGRAMMING BUT HE SAYS WE USUALLY END UP DOING SMALLER THINGS RATHER THAN LARGER WHILE DECLINING TO COMMENT ON ANY TALKS WITH MR TURNER MR WRIGHT SAYS HE AND THE CABLE TITAN SEE MANY THINGS IN A SIMILAR MANNER MR TURNER IS AN EAGER PERSON TO MOVE AHEAD BUT HE HAS A LOT OF DIVERSE SHAREHOLDERS AT CBS THOUGH MR TISCH WHO ASSOCIATES SAY CLEARLY RELISHES THE PRESTIGE OF BEING CBS'S CHAIRMAN SAYS HE IS NOT A SELLER NOR DOES HE SEEM A LIKELY BUYER HE SAYS A NETWORK CAN INCREASE ITS PRODUCTION CAPABILITY IN HOLLYWOOD MERELY BY INVESTMENT IN PROGRAMMING WITHOUT INCURRING THE ADDED COST OF BUYING A STUDIO WHILE KEEPING ALL OUR OPTIONS OPEN MR TISCH ADDS AT THE MOMENT WE DON'T SEE A STUDIO PURCHASE AS A REALLY PROFITABLE VENTURE THE WALL STREET RUMOR MILL PERSISTS IN PAINTING CBS AS THE MOST LIKELY NETWORK TO CHANGE HANDS THOUGH THAT COULD BE WISHFUL THINKING BY EAGER INVESTMENT BANKERS WHY THE SPECULATION AND THE NETWORKS' OWN CANDID ADMISSION OF VARIOUS DISCUSSIONS RIGHT NOW THE TIMING OWES A LOT TO THE LOOSENING IN NOVEMBER OF THE FINANCIAL INTEREST AND SYNDICATION RULES AN ARCANE SET OF GOVERNMENT REGULATIONS THAT FOR TWO DECADES LARGELY KEPT THE NETWORKS OUT OF PROGRAMMING AS A RESULT OF THE NOVEMBER MOVE AND AN EARLIER FEDERAL COMMUNICATIONS COMMISSION RULING THE NETWORKS CAN OWN AND PRODUCE AS MUCH OF THEIR PRIMETIME SCHEDULES AS THEY WANT OWN STAKES IN SHOWS PRODUCED BY OUTSIDERS AND SYNDICATE RERUNS OF THEIR SHOWS ABROAD BY NOVEMBER 1995 AND PERHAPS AS EARLY AS THIS SUMMER IF A CHICAGO FEDERALCOURT DECISION GOES THEIR WAY THE NETWORKS WILL BE FREED TO ENTER THE US SYNDICATION MARKET AS WELL AND WILL NO LONGER BE BARRED FROM MERGING WITH HOLLYWOOD STUDIOS WHICH HAVE EXTENSIVE SYNDICATION OPERATIONS THE NETWORKS SAY THEIR ABILITY TO CREATE AND OWN MANY PROGRAMS INHOUSE WILL ENABLE THEM TO CONTROL COSTS BETTER THAN WHEN THEY ARE BEHOLDEN TO OUTSIDE STUDIO SUPPLIERS ALREADY THEY HAVE VASTLY INCREASED PRODUCTION OF NEWS PROGRAMMING AND COLLECTIVELY NOW PROVIDE ABOUT 25 OF THEIR PRIMETIME SCHEDULES PLUS MOST OF THEIR DAYTIME SPORTS AND LATENIGHT SHOWS ALL THREE NETWORKS SAY THEY CAN CREATE PROGRAMMING THEMSELVES AND DON'T HAVE TO TURN TO MERGERS OR ACQUISITIONS IF THEY DON'T WANT TO THE ONLY THING THE STUDIOS BRING TO THE CREATIVE PROCESS IS MONEY AND WE'VE GOT THAT TOO SAYS MR MURPHY THE BIG THREE HAVE CREATED A HANDFUL OF POPULAR SHOWS LIKE THE CBSPRODUCED DR QUINN MEDICINE WOMAN BUT THEY ALSO HAVE TURNED OUT MORE THAN THEIR SHARE OF FLOPS ON THE ORDER OF ABC'S PAULA POUNDSTONE SHOW WHICH LASTED ONLY TWO WEEKS THIS SEASON SOME ANALYSTS THINK THE NETWORKS MAY HAVE LITTLE CHOICE BUT TO DO SOME KIND OF DEAL WITH ENTERTAINMENT PRODUCTION FIRMS THE NETWORKS THEY SAY JUST HAVEN'T PROVED THEY CAN MAKE HITS AS WELL AS THE STUDIOS CAN SHARES OF BOTH CBS AND ABC WILL REMAIN DISCOUNTED RELATIVE TO OTHER ENTERTAINMENT STOCKS SAYS LEHMAN BROTHERS INC ANALYST RAYMOND KATZ UNTIL THE MARKET IS ASSURED OF THEIR ABILITY TO CONSISTENTLY TURN OUT ATTRACTIVE ENTERTAINMENT PRODUCT A NETWORK THAT DOES TRY TO GO IT ALONE MOREOVER MAY FIND IT INCREASINGLY DIFFICULT TO FIND GOOD SHOWS AS COMPETITORS LOCK UP THE MOST TALENTED PRODUCERS ALREADY FOR EXAMPLE ABC HAS AGREED TO INVEST UP TO 100 MILLION IN BRILLSTEINGREY ENTERTAINMENT A TOP COMEDY MANAGEMENT AND PRODUCTION CONCERN WITH CLIENTS INCLUDING GARRY SHANDLING SOME ON WALL STREET REMAIN SKEPTICAL ABOUT THE NETWORKS' STRENGTHENING COMPETITIVE POSITION REGARDLESS OF THEIR SUCCESS IN THE PROGRAMMING BUSINESS I DIDN'T THINK THE PERCEPTION THAT THEY WERE DINOSAURS WAS CORRECT AND I DON'T THINK THEY'RE NOW AS HEALTHY AS THEY'RE MADE OUT TO BE SAYS RAY TIMOTHY SENIOR MANAGING DIRECTOR AT INVESTMENT BANKER FURMAN SELZ INC AND A 35YEAR VETERAN OF NBC FOR ONE THING MR TIMOTHY BELIEVES THAT THE CABLE INDUSTRY WHICH NOW GETS 23 OF THE 24HOUR AUDIENCE BUT ONLY 12 OF TV AD REVENUE WILL PRESS TO CLOSE THAT GAP THE INVESTMENT COMMUNITY HE SAYS LURCHES AROUND LIKE CRAZY WHEN IT COMES TO MEDIA STOCKS BIDDING IS NOW FEVERISH FOR NETWORKAFFILIATED TV STATIONS HE NOTES WHILE ONLY A FEW YEARS AGO STATION BUYERS COULDN'T BE FOUND TOM WOLZIEN AN ANALYST AT SANFORD C BERNSTEIN & CO CONTENDS THAT LONGER TERM THE TREND WILL REMAIN THE SAME A DOWNWARD SPIRAL AS THE NETWORKS FIGHT TO MAINTAIN QUALITY PROGRAMMING AND BRAND IMAGE IN THE FACE OF REDUCED REVENUE CAUSED BY DIMINISHING AUDIENCE SHARES HISTORICALLY THE NETWORKS' STRENGTH FLOWED FROM THEIR IRONCLAD DISTRIBUTION SYSTEM THROUGH STATION AFFILIATES REACHING 98 OF US HOMES CURRENTLY 63 OF US HOMES WITH TELEVISION SUBSCRIBE TO BASIC CABLE UP FROM 405 A DECADE AGO AND 23 IN 1980 OVER THAT PERIOD THE NETWORKS' SHARE OF THE PRIMETIME VIEWING AUDIENCE HAS TUMBLED TO 61 WHILE VIEWERS TURN TO CABLE 19 OF THE TIME STILL MANY IN THE INDUSTRY BELIEVE THAT COMPETITION FROM CABLE HAS REACHED A PLATEAU NEW CABLE CHANNELS ARE STILL PROLIFERATING BUT THEY ARE NOW AS LIKELY TO CANNIBALIZE ONE ANOTHER AS THE NETWORKS NBC SAYS ITS RESEARCH SHOWS THAT WHEN PRESENTED WITH A CHOICE OF UP TO 100 CHANNELS PEOPLE ACTUALLY USE ABOUT EIGHT THE HIGHESTRATED REGULARLY SCHEDULED PRIMETIME CABLE SERIES IS A CBS RERUN MURDER SHE WROTE ON USA NETWORK MEANWHILE THE NETWORKS' CABLE RIVALS HAVE TAKEN A FEW LUMPS AT THE HANDS OF REGULATORS IN THE CABLE ACT OF 1992 CABLE SYSTEMS WERE ORDERED TO COMPENSATE BROADCAST STATIONS FOR RETRANSMITTING THEIR SIGNALS LAST MONTH THE FCC ORDERED ANOTHER ROUND OF CUTS IN THE FEES CABLE SYSTEMS CAN CHARGE SUBSCRIBERS THE COLLAPSE OF TELECOMMUNICATIONS INC'S MERGER WITH REGIONAL PHONE GIANT BELL ATLANTIC CORP LAST MONTH ALSO RAISES QUESTIONS ABOUT HOW FAST NEW CHANNELS AND SERVICES WILL ROLL OUT AND FINALLY EVEN WITH DIMINISHED SHARES THE NETWORKS STILL HAVE A CRITICAL MASS THAT THE FRAGMENTED CABLE BUSINESS LACKS JEROME DOMINUS SENIOR VICE PRESIDENT AT WPP GROUP INC'S J WALTER THOMPSON AD AGENCY HAS ON HIS OFFICE WALL A LIST OF 51 NEW CABLECHANNEL STARTUPS FOR 1994 WHAT NONE OF THEM HAS AND WHAT NONE OF THE EXISTING CHANNELS HAS ARE THE PROMOTIONAL CAPABILITIES OF A NETWORK HE SAYS ONLY CBS NBC AND ABC HE SAYS CAN BUILD AUDIENCES FOR NEW SHOWS BY PLUGGING THEM DURING EXISTING HITS OR EVENT PROGRAMMING LIKE THE OLYMPICS THE NETWORKS ARE ALSO GETTING A BOOST FROM COSTCUTTING MEASURES AS WELL AS FROM A STRONGER ECONOMY AND REBOUNDING TV AD SPENDING CBS AND CAP CITIES REPORTED RECORD EARNINGS FROM CONTINUING OPERATIONS LAST YEAR WITH OPERATING INCOME OF 411 MILLION AT CBS AND 778 MILLION AT CAP CITIES' BROADCAST OPERATIONS GE DOESN'T BREAK OUT NBC'S FINANCIAL RESULTS BUT COMPANY SOURCES PUT NBC'S 1993 OPERATING PROFIT AT 340 MILLION TO 360 MILLION THE MERGER SPECULATION IS THE LATEST FLAREUP OF RUMORS THAT HAVE SWIRLED AROUND BROADCAST ROW FOR YEARS YET NO DEALS HAVE COME TO FRUITION FOR REASONS UNIQUE TO EACH NETWORK IN DECEMBER 1992 CAP CITIES SIGNALED THAT IT WAS PREPARED TO SPEND UP TO 8 BILLION ON AN ACQUISITION AND TALKED TO BOTH TURNER AND PARAMOUNT A YEAR LATER HAVING FAILED TO COME TO TERMS CAP CITIES INSTEAD CHOSE TO BUY BACK STOCK GE MEANWHILE CAME CLOSE TO SELLING NBC TO PARAMOUNT IN 1992 BUT IT HAS SINCE INSISTED IT WILL REMAIN IN THE BUSINESS MR WRIGHT SAYS A DEAL WITH A STUDIO WOULD BE UNLIKELY NOTING THAT THE BUSINESS OF FINANCING THEATRICAL MOVIES DOESN'T REALLY HAVE AN AWFUL LOT OF FIT WITH TELEVISION REGULATORY RESTRICTIONS WOULD PROBABLY PRECLUDE ANY DEAL WITH A TELEPHONE COMPANY HE SAYS BUT HE STRESSES THAT THAT DOESN'T RULE OUT SOME POSSIBLE SHARED INVESTMENT IN PROGRAM PRODUCTION THOUGH CBS AND WALT DISNEY HAVE DENIED SPECULATION ABOUT A MERGER DISNEY EXECUTIVES ACKNOWLEDGE PRIVATELY THAT THEY ARE INTERESTED IN NETWORKS HOWEVER THEY VALUE THEM AT ABOUT HALF WHAT MOST NETWORK EXECUTIVES DO NETWORK SELLERS WOULD LIKELY DEMAND A HEFTY PREMIUM OVER THE CURRENT MARKET AND NO BUYER COULD BE SURE A BIDDING WAR WOULDN'T ERUPT CBS HAS A STOCKMARKET VALUE OF ABOUT 49 BILLION AND CAP CITIES/ABC WHICH INCLUDES PUBLISHING OPERATIONS OF 108 BILLION GE HAS INDICATED IN THE PAST IT VALUES NBC AT ABOUT 4 BILLION RATHER THAN BUY A NETWORK TIME WARNER AND PARAMOUNT ARE TRYING TO START ONE THE LATTER IS TEAMING WITH STATION OWNER CHRISCRAFT INDUSTRIES INC BUT TIME WARNER AND PARAMOUNT ARE IN LARGE PART ACTING DEFENSIVELY FEARING THAT THE BIG THREE'S INCREASING PRODUCTION OF THEIR OWN PROGRAMS WILL HURT STUDIO OPERATIONS EVEN IF THE MAJOR NETWORKS' PROGRAMMING FORAYS DON'T WORK OUT THEY ARE HEDGING THEIR BETS THEY ARE LOBBYING FOR A REGULATORY CHANGE THAT WOULD LET THEM USE THE BROADCAST SPECTRUM TO PROVIDE ADDITIONAL SERVICES CRAMMING IN DATA STREAMS THROUGH DIGITAL COMPRESSION SERVICES COULD RANGE FROM EXTRA CHANNELS DEVOTED TO NEWS OR SPORTS TO INTERACTIVE OR HOMESHOPPING SERVICES ALREADY NBC NEWS PROGRAMMING IS BEING REPACKAGED AND RELAYED THROUGH SUCH OUTLETS AS THE NETWORK'S BUSINESS CABLE CHANNEL CNBC ITS SPANISHLANGUAGE NEWS SERVICE MAINLY DISTRIBUTED IN LATIN AMERICA AND THE EUROPEAN SATELLITE SERVICE SUPER CHANNEL TRANSMITTING INFORMATION IN VIDEO FORMAT IS JUST BEGINNING ITS GOLDEN AGE SAYS MR WRIGHT CAP CITIES WHICH ALSO HAS EXTENSIVE CABLE INTERESTS HAS INVESTED ABOUT 300 MILLION IN EUROPEAN MEDIA BUSINESSES AND EVEN CBS WHICH HAS STUCK DOGGEDLY TO BROADCASTING MAY FINALLY BE CHANGING ITS TUNE MR STRINGER INDICATES IT IS INVESTIGATING NEW MEDIA TO DECIDE WHERE BEST OUR SOFTWARE CAN BE DIRECTED MR TISCH THOUGH STRESSES THAT CBS WON'T STRAY FAR FROM WHAT IT KNOWS BEST OUR FATE IS IN OUR OWN HANDS HE SAYS IF WE DELIVER THE PROGRAMMING THE AUDIENCE WILL BE THERE WE CAN'T BLAME OUR SUCCESS OR FAILURE ON ANYONE BUT OURSELVES LAURA LANDRO CONTRIBUTED TO THIS ARTICLE 9403170017 940317 INTERNATIONAL SCHRODERS STRONG '93 RESULTS FUEL TALK IT MIGHT SEEK CONTROL OF US AFFILIATE BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON SCHRODERS PLC ANNOUNCED RECORD EARNINGS FOR THE THIRD YEAR IN A ROW HEIGHTENING MARKET SPECULATION THAT IT MAY SOON SEEK TO ACQUIRE FULL CONTROL OF ITS NEW YORK AFFILIATE WERTHEIM SCHRODER & CO UNVEILING NET PROFIT OF 140 MILLION 2087 MILLION DOUBLED FROM 70 MILLION IN 1992 THE UK MERCHANT BANK SAID IT WOULD RAISE ITS DIVIDEND 50 TO 165 PENCE A SHARE THE 1992 EARNINGS WERE RESTATED TO TAKE ACCOUNT OF CHANGES IN ACCOUNTING PROCEDURES EVEN AFTER THE UNEXPECTEDLY BIG DIVIDEND INCREASE FOR 1993 THE BANK WAS ABLE TO ADD 119 MILLION IN RETAINED EARNINGS LAST YEAR TO ITS CAPITAL AND RESERVES INCREASING SHAREHOLDERS' FUNDS TO 6745 MILLION AT THE END OF 1993 FROM 5456 MILLION A YEAR EARLIER THE RESULT WAS TO GIVE SCHRODERS A CAPITAL ADEQUACY RATIO OF MORE THAN 20 DOUBLE THE 10 MINIMUM SET FOR IT BY THE BANK OF ENGLAND ANALYSTS GREETED THE FIGURES AS PARTICULARLY IMPRESSIVE SCHRODERS SHARES RESPONDED BY CLOSING AT 1170 UP 80 PENCE ON THE LONDON STOCK EXCHANGE THOUGH THE BANK DIDN'T GIVE ANY BREAKDOWN OF ITS EARNINGS IN VARIOUS SECTORS OF OPERATIONS THEY HAVE OBVIOUSLY DONE INCREDIBLY WELL ACROSS THE BOARD AND WITHOUT TAKING ANY MAJOR RISKS COMMMENTED PHILIP GIBBS OF BARCLAYS DE ZOETE WEDD SCHRODERS'S HIGH CAPITAL ADEQUACY RATIO RAISES THE QUESTION OF WHAT IT CAN USEFULLY DO WITH ITS EXTRA EARNINGS IF IT DOESN'T INTEND TO DISTRIBUTE THEM TO SHAREHOLDERS SCHRODERS CHAIRMAN GEORGE W MALLINCKRODT SAID THE BANK WOULD USE SOME OF THE EARNINGS TO FUND THE CAPITAL NEEDS OF SUBSIDIARIES IN VARIOUS GEOGRAPHICAL AREAS A MAJOR FOCUS FOR FUTURE EXPANSION IS CHINA WHERE SCHRODERS HAS REQUESTED A BANKING LICENSE HE SAID OFFICIALS ALSO CONFIRMED THAT A DRIVE IS UNDER WAY TO FORGE CLOSER LINKS WITH WERTHEIM SCHRODER HINTING THAT SCHRODERS MAY INCREASE ITS STAKE IN THE US INVESTMENT BANK UNDER AN ARRANGEMENT FROM 1986 SCHRODERS AND THE PARTNERS OF THE FORMER WALL STREET INVESTMENT BANK WERTHEIM EACH HOLD 50 OF THE VOTING SHARES OF WERTHEIM SCHRODER THREE OUTSIDE INSTITUTIONS BANK OF BOSTON MASSACHUSETTS MUTUAL LIFE AND MITSUBISHI TRUSTBANK EACH HAVE SMALL NONVOTING STAKES EQUIVALENT TO 49 OF TOTAL EQUITY WERTHEIM SCHRODER HAS ACCESS TO US INSTITUTIONS WHILE WE HAVE ACCESS TO MAJOR PRIVATIZATIONS SAID NICK MACANDREW SCHRODERS'S GROUP MANAGING DIRECTOR FOR FINANCE STRATEGIC PLANNING AND INFORMATION TECHNOLOGY THE IMPORTANT THING IS TO GET THE BUSINESSES WORKING TOGETHER AMONG THE MANY BRIGHT SPOTS IN SCHRODERS'S 1993 RESULTS ITS FUND MANAGEMENT UNIT INCREASED TOTAL FUNDS UNDER MANAGEMENT BY 47 TO 529 BILLION THIS INCLUDED A NET INFLOW OF 65 BILLION IN NEW FUNDS THE BANK SAID SCHRODER CAPITAL MANAGEMENT IS NOW THE LARGEST MANAGER OF FOREIGN EQUITIES FOR UK INSTITUTIONS ON THE CORPORATE FINANCE SIDE SCHRODERS WAS INVOLVED IN 115 MERGERS AND ACQUISITIONS DURING THE YEAR FOR A TOTAL VALUE OF 15 BILLION IN THE US WERTHEIM SCHRODER TOOK PART IN OVER 40 FINANCING OPERATIONS TOTALING MORE THAN 6 BILLION IN BRITAIN SCHRODERS WAS LEAD OR COLEAD MANAGER FOR 28 BILLION OF EQUITY OR EQUITYLINKED ISSUES SCHRODERS'S PUBLICATION OF RELATIVELY DETAILED FIGURES FOR 1993 MARKED A BREAK WITH FORMER SECRETIVENESS AND A TRADITION OF DISCLOSING ONLY PART OF ITS PROFITS SETTING ASIDE THE REST IN THE FORM OF HIDDEN RESERVES CHANGES IN EU ACCOUNTING RULES THIS YEAR OBLIGED SCHRODERS TO REVEAL HIDDEN RESERVES OF 102 MILLION IN ITS RESTATED 1992 ACCOUNTS 9403170016 940317 AFTERSHOCKS JAR SANTA MONICA'S RENT CONTROLLERS BY HAROLD JOHNSON SANTA MONICA TWO MONTHS HAVE PASSED SINCE THE SOUTHERN CALIFORNIA EARTHQUAKE BUT IN THIS SEASIDE SUBURB OF LOS ANGELES FAMED FOR A YUPPIE BRAND OF COLLECTIVISM THAT HAS EARNED IT THE NICKNAME THE PEOPLE'S REPUBLIC OF SANTA MONICA THE POLITICAL AFTERSHOCKS SHOW NO SIGN OF LETUP THE QUAKE OPENED POTENTIALLY CRIPPLING FISSURES IN THE SYSTEM AROUND WHICH THE RULING PROGRESSIVES STILL ORGANIZE THEIR POWER ONE OF THE NATION'S MOST DRACONIAN RENTCONTROL LAWS WHICH FOR 15 YEARS HAS GUARANTEED THEM A SOLID POLITICAL BASE OF GRATEFUL TENANTS AT LEAST 3000 OF SANTA MONICA'S APPROXIMATELY 30000 RENTCONTROLLED APARTMENT UNITS WERE HEAVILY DAMAGED BY JAN 17'S 68MAGNITUDE TEMBLOR BY SOME ESTIMATES AS MANY AS 150 LANDLORDS ARE STUCK WITH BUILDINGS SO FAR GONE THAT TENANTS CAN'T SAFELY MOVE BACK IN GIVEN THE PUNISHING ECONOMICS OF RENT CONTROL SOME OWNERS OF MAIMED BUILDINGS SAY THE INCENTIVE TO RESTORE OR REBUILD UNLESS THEY'RE GRANTED TOTAL EXEMPTION FROM PRICE RESTRICTIONS ISN'T THERE BUT TRUE TO FORM THE CITY HAS OFFERED ONLY HALFWAY RELIEF YES LANDLORDS ARE TOLD THEY'LL BE ABLE TO PASS ALONG THE COST OF EARTHQUAKE REPAIRS IN THE FORM OF HIGHER RENTS BUT THE AMORTIZATION FORMULA CAN BE DIZZYING TENANTS GET TO PROTEST UNFAIR HIKES OR CHARGES FOR FIXING PROBLEMS NOT CAUSED BY THE QUAKE AND THE APPROVAL PROCESS MOVES AT THE CITY'S PATENTED SLOMO PACE OWNERS WHOSE BUILDINGS ARE BEYOND FIXING HAVE BEEN PROMISED AT LEAST PARTIAL PRICE DECONTROL IF THEY REBUILD BUT THE CITY IS STINGY WITH DEMOLITION PERMITS AND DECONTROL WON'T EXTEND TO ALL THE APARTMENTS IN A REPLACEMENT STRUCTURE BETWEEN 15 AND 30 OF NEW UNITS MUST GO TO LOWINCOME RENTERS MORE THAN A FEW APARTMENT OWNERS ARE TALKING ABOUT COLLECTING WHAT INSURANCE THEY CAN AND THROWING IN THE TOWEL OTHERS AREN'T THAT LUCKY I'VE BEEN RUINED A TEARFUL MARY TABATABAI SAID AT A CITY COUNCIL MEETING THE OTHER NIGHT BEFORE THE QUAKE THE IRANIAN IMMIGRANT LIVED IN HER EIGHTUNIT APARTMENT BUILDING NOW IT IS UNINHABITABLE ITS DAMAGES GREATER THAN HER EQUITY IN THE BUILDING HOMELESS AND BROKE SHE SAYS THE RENT CONTROL BOARD IS RESPONSIBLE BECAUSE THE 440 RENTS SHE WAS ALLOWED TO CHARGE FOR HER TWOBEDROOM UNITS DIDN'T LEAVE HER ENOUGH TO PAY FOR EARTHQUAKE COVERAGE BUT DESPITE THE GRIM TALES SOME BELIEVERS IN PROPERTY RIGHTS STILL SEE A SILVER LINING IN THE WAY THE QUAKE HAS THROWN THE LEFTIST POWER STRUCTURE OFFBALANCE CAMPAIGN SLATES RUN BY SANTA MONICANS FOR RENTERS RIGHTS CAN USUALLY COUNT ON A VICTORY MARGIN OF JUST OVER 6000 VOTES IF 1400 APARTMENTS ARE LOST AND I THINK THAT WILL BE THE FINAL TOTAL ABOUT 3000 TENANTS ARE ELIMINATED FROM THE ROLLS IF YOU FIGURE 22 VOTERS PER UNIT SAYS JOHN RODRIGUEZ A BARBER AND FORMER PRESIDENT OF A LOCAL APARTMENTOWNERS ASSOCIATION THAT COULD REALLY TIGHTEN THINGS UP IN CITY POLITICS OPPONENTS OF THE STATUS QUO ALSO HAVE A NEW ARGUMENT IN THEIR ARSENAL RENT CONTROL MAY HAVE BEEN ONE OF THE REASONS THE APARTMENT STOCK TOOK SUCH A HIT DESPITE THE FACT THAT THE QUAKE'S EPICENTER WAS MILES NORTH ON THE FAR SIDE OF THE SANTA MONICA MOUNTAINS WHILE GEOLOGICAL REPORTS SAY THE SHAKING WAS MORE INTENSE IN SANTA MONICA THAN IN MANY SURROUNDING COMMUNITIES IT'S ALSO TRUE THAT SOME OF THE WORST DAMAGE WAS TO DECADESOLD FRAMEANDSTUCCO BUILDINGS THAT WOULD HAVE BEEN REPLACED IN THE '80S HAD IT NOT BEEN FOR REGULATORY ROADBLOCKS RENTS ARE BASED ON THE LEVELS OF APRIL 1978 ONE YEAR BEFORE THE LAW TOOK EFFECT WITH ONLY SLIGHT ANNUAL ADJUSTMENTS THAT HAVE KEPT PRICES AT TIMES 30 TO 50 BELOW MARKET LEVELS AS REFLECTED SAY IN NEIGHBORING BRENTWOOD LANDLORDS HAVE FOUND IT NEXT TO IMPOSSIBLE TO WIN SPECIAL INCREASES TO FINANCE MAINTENANCE SO ROOF REPAIRS TERMITE FUMIGATION AND PLUMBING AND WIRING OVERHAULS HAVE BEEN WIDELY DEFERRED STRUCTURAL STRESSES FROM TERMITES PLAYED A BIG PART IN THE EARTHQUAKE MESS SAYS MARK MARKEVICIUS WHO MANAGES ABOUT 1500 APARTMENT UNITS STROLL AROUND THE PARTS OF TOWN THAT WERE HARDEST HIT AND YOU'LL SEE APARTMENT BUILDINGS WITH BUCKLING WALLS WHICH CAN BE A SIGN OF TIMBER WEAKENED BY DRY ROT OR TERMITES EVEN TOM HAYDEN WHO ERECTED THE CITY HALL MACHINE BACK IN THE '70S AND TODAY IS THE LOCAL STATE SENATOR AND A CANDIDATE FOR GOVERNOR CHIDED CITY OFFICIALS AFTER THE QUAKE WHILE MORE THAN 90 OF UNREINFORCED MASONRY BUILDINGS IN LOS ANGELES HAD BEEN TORN DOWN OR RETROFITTED BEFORE THE QUAKE HE SAID SANTA MONICA HAD RETROFITTED ONLY SLIGHTLY MORE THAN HALF OF ITS OWN SIMILAR STRUCTURES BUT IF RENT CONTROL HAS TAKEN A TOLL ON THE HOUSING STOCK THE BUREAUCRACY THAT ADMINISTERS THE LAW IS DOING JUST FINE THE RENT CONTROL BOARD'S BUDGET HAS GROWN FROM 745000 IN THE LATE '70S TO NEARLY 5 MILLION TODAY ITS 55 EMPLOYEES EARNING AN AVERAGE OF ABOUT 53000 NOT INCLUDING BENEFITS TO PAY THE BILL TENANTS ARE LEVIED A 156PERUNIT YEARLY FEE UP FROM 84 IN 1986 BUT LANDLORDS HAVE TO COLLECT IT AND CARRY THE COSTS IF A RENTER IS LATE ANTEING UP THE ESTABLISHMENT ISN'T GOING TO LET ALL THIS GO WITHOUT A STRUGGLE AND A DETERMINED EFFORT IS ON TO LIMIT THE NUMBER OF RENTCONTROLLED APARTMENTS LOST TO THE QUAKE SOME LANDLORDS CHARGED THAT IN ITS DESPERATION TO SHORE UP ITS ELECTORAL BASE THE CITY HIERARCHY WAS DISTURBINGLY EAGER TO GET TENANTS BACK INTO BUILDINGS OF QUESTIONABLE SOUNDNESS OFFICIALS SWEAR THEY'RE TAKING EVERY PRECAUTION BUT ATTORNEY CARL LAMBERT FOR ONE STILL EXPRESSES CONCERN HE SAYS AN APARTMENT BUILDING HE MANAGES WAS TORN OFF ITS FOUNDATION BUT AN INSPECTOR BROUGHT IN BY THE CITY INSISTED THE DAMAGE WAS COSMETIC AND TENANTS SHOULD BE INVITED BACK IN ANOTHER LAWYER ROSARIO PERRY HEADED TO COURT WHEN THE CITY TRIED TO FORCE A COUPLE OF HIS CLIENTS TO REOPEN THEIR SMALL COMPLEX OF RENTCONTROLLED BUNGALOWS BEFORE THEY COULD MAKE BASIC REPAIRS PARTS OF THE CHIMNEYS HAD FALLEN DOWN THE ROOFS WERE SEPARATED FROM THE WALLS GAS LINES WERE LEAKING BUT WE WERE SUPPOSED TO LET TENANTS BACK IN HE SAYS AND THERE WAS NO GUARANTEE MY CLIENTS WOULDN'T BE HELD LIABLE FOR ANY INJURIES TO RENTERS A LOS ANGELES COUNTY JUDGE ISSUED AN INJUNCTION GIVING THE OWNERS TIME FOR SOME RUDIMENTARY SAFETY WORK IN THE END FEWER THAN HALF THE TENANTS MOVED BACK IN MEANWHILE SEN BARBARA BOXER TOLD SANTA MONICA MAYOR JUDY ABDO THAT SHE'D ASK FEDERAL HOUSING OFFICIALS TO CONSIDER BUYING SEVERELY DAMAGED RENTCONTROLLED BUILDINGS FOR THOSE FOES OF RENT CONTROL WHO'VE LONG CLAIMED THAT THE UNSPOKEN AIM WAS TO DRIVE LANDLORDS OUT OF BUSINESS SO GOVERNMENT COULD TAKE OVER THEIR PROPERTY MS BOXER'S PROMISE OFFERED AN OPPORTUNITY FOR SOME WETOLDYOUSO'S BUT HOW MUCH MONEY IF ANY WILL ACTUALLY MATERIALIZE IS UNCLEAR AND IN THE LONG RUN EVEN THE FEDS MAY NOT BE ABLE TO COUGH UP ENOUGH TO SAVE THE RENT CONTROLLERS FROM THE CONSEQUENCES OF THEIR FLATEARTH ECONOMICS MR JOHNSON IS AN EDITORIAL WRITER AT THE ORANGE COUNTY REGISTER AND EDITOR OF NATIONAL REVIEW WEST NATIONAL REVIEW MAGAZINE'S WEST COAST SUPPLEMENT PUBLISHED IN CONJUNCTION WITH THE CLAREMONT INSTITUTE 9403170015 940317 WHITE HOUSE SEEKS EXCISE TAX TO FIGHT ABUSES BY TAXEXEMPT PUBLIC CHARITIES BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION PROPOSED A NEW EXCISE TAX TO COMBAT ABUSES BY TAXEXEMPT PUBLIC CHARITIES THE PROPOSAL BACKED BY LAWMAKERS OF BOTH PARTIES WOULD HIT INSIDERS SUCH AS OFFICERS AND DIRECTORS WHO RECEIVE WHAT THE INTERNAL REVENUE SERVICE WOULD CONSIDER EXCESSIVE COMPENSATION FROM THE TAXEXEMPT ORGANIZATION THE PLAN ALSO WOULD PENALIZE MANAGERS WHO APPROVE THE COMPENSATION THE TAX ON INSIDERS WOULD SHARPLY ESCALATE IF THEY DIDN'T REFUND THE SOCALLED EXCESS LESLIE SAMUELS ASSISTANT TREASURY SECRETARY FOR TAX POLICY TOLD THE HOUSE WAYS AND MEANS OVERSIGHT SUBCOMMITTEE THAT THE TAX AIMS AT BAD APPLES WHO DIVERT FUNDS FROM CHARITIES FOR THEIR OWN BENEFIT HE SAID THE TAXEXEMPT CHARITABLE COMMUNITY AS A WHOLE SUPPORTS THE PLAN WHICH ALSO CALLS FOR MORE DISCLOSURE BY TAXEXEMPT ORGANIZATIONS HE SAID SPECIFIC LEGISLATION WILL BE SENT TO CAPITOL HILL SOON WITH AN EFFECTIVE DATE OF TODAY THE INITIATIVE ADDRESSES A PROBLEM THAT HAS PLAGUED THE IRS WITH INCREASING SEVERITY IN RECENT YEARS AS CHARITABLE ORGANIZATIONS HAVE GROWN IN NUMBERS AND FINANCIAL COMPLEXITY THE IRS AND OTHERS HAVE TESTIFIED THAT SOME CHARITIES ARE BEING OPERATED MORE FOR THE BENEFIT OF INSIDERS THAN THEIR PURPORTED BENEFICIARIES THE DIVERSION OF CHARITABLE RESOURCES TO THE PERSONAL USE OF INSIDERS HAS BEEN DETECTED IN ALL TYPES OF CHARITIES INCLUDING PUBLICSERVICE ORGANIZATIONS NONPROFIT HOSPITALS AND UNIVERSITIES TELEVANGELISTS AND RELIGIOUS GROUPS BUT THE PENALTY FOR VIOLATING TAX RULES GOVERNING SUCH ORGANIZATIONS IS REVOCATION OF TAXEXEMPT STATUS A PENALTY SO HARSH THAT THE IRS HAS BEEN RELUCTANT TO INVOKE IT UNLESS THE VIOLATION IS SEVERE IRS COMMISSIONER MARGARET RICHARDSON HAS SAID INTERMEDIATE SANCTIONS WOULD BE HELPFUL UNDER THE TREASURY'S PROPOSAL THE EXCISE TAX WOULD APPLY TO ANY EXCESS BENEFIT PROVIDED TO AN INSIDER BY AN ORGANIZATION EXEMPT FROM TAXATION UNDER SECTION 501C3 OR 501C4 OF THE TAX CODE INSIDERS WOULD INCLUDE THE ORGANIZATION'S OFFICERS DIRECTORS AND TRUSTEES AS WELL AS THOSE OTHERWISE IN A POSITION TO EXERCISE SUBSTANTIAL CONTROL OVER ITS AFFAIRS IF THE IRS DETERMINED A PORTION OF AN INSIDER'S COMPENSATION TO BE UNREASONABLE A TAX OF 25 WOULD BE LEVIED ON THE EXCESS BENEFIT IN ADDITION ANY MANAGER WHO APPROVED THE COMPENSATION KNOWING IT WAS UNREASONABLE WOULD BE SUBJECT TO A TAX OF 10 OF THE UNREASONABLE BENEFIT TO A MAXIMUM OF 10000 INSIDERS WOULD ALSO HAVE TO REPAY THE EXCESS BENEFIT AND IF THEY DIDN'T DO SO WITHIN A PRESCRIBED PERIOD THEY WOULD BE HIT WITH A 200 TAX THE IRS COULD STILL REVOKE A CHARITY'S TAXEXEMPT STATUS AS WELL AS IMPOSE THE TAX IN EXTREME CASES FACTORS DETERMINING THE REASONABLENESS OF COMPENSATION INCLUDE THE NATURE OF THE INSIDER'S DUTIES THE PERSON'S BACKGROUND AND EXPERIENCE THE TIME DEVOTED TO THE ORGANIZATION THE SIZE OF THE ORGANIZATION AND AMOUNTS PAID BY SIMILAR ORGANIZATIONS MR SAMUELS SAID THE PROPOSAL EXPLICITLY COVERS HEALTHCARE ORGANIZATIONS INCLUDING HEALTH MAINTENANCE ORGANIZATIONS THAT ARE TAXEXEMPT UNDER SECTION 501C4 OF THE TAX CODE HE SAID THE RESTRUCTURING OF THE HEALTHCARE MARKET EXPECTED TO RESULT FROM HEALTHCARE REFORM COULD PROVIDE GREATER OPPORTUNITIES FOR INSIDERS TO DIVERT RESOURCES TO THEIR OWN BENEFIT OVERSIGHT SUBCOMMITTEE CHAIRMAN J J PICKLE D TEXAS ENDORSED THE ADMINISTRATION'S PLAN AND HELD OUT THE PROSPECT FOR QUICK CONGRESSIONAL ACTION MR SAMUELS SAID THE PROPOSAL SHOULD BE A SERIOUS DETERRENT TO THOSE WHO ENGAGE IN ABUSIVE TRANSACTIONS HE ALSO SAID PRELIMINARY ESTIMATES ARE THAT IT WOULD RAISE ABOUT 65 MILLION OVER FIVE YEARS 9403170014 940317 DELTAHEDGING THE NEW NAME IN PORTFOLIO INSURANCE BY BARBARA DONNELLY GRANITO PORTFOLIO INSURANCE THE HIGHTECH HEDGING STRATEGY THAT HELPED GREASE THE SLIDE IN THE 1987 STOCKMARKET CRASH IS ALIVE AND WELL AND JUST AS IN 1987 IT DOESN'T ALWAYS WORK OUT AS PLANNED AS SOME FINANCIAL INSTITUTIONS FOUND OUT IN THE RECENT EUROPEAN BONDMARKET TURMOIL BASICALLY PORTFOLIO INSURANCE IS JUST A TYPE OF STOPLOSS STRATEGY THAT IS IT CALLS FOR NIMBLY SELLING OUT OF YOUR LOSING BETS AND BUYING BACK INTO WINNING BETS BANKS SECURITIES FIRMS AND OTHER BIG TRADERS RELY HEAVILY ON PORTFOLIO INSURANCE TO CONTAIN THEIR POTENTIAL LOSSES WHEN THEY BUY AND SELL OPTIONS BUT SINCE PORTFOLIO INSURANCE GOT A BAD NAME AFTER IT BACKFIRED ON INVESTORS IN 1987 IT GOES BY AN ALIAS THESE DAYS THE SEXIER STAR TREK MONIKER OF DELTAHEDGING WHATEVER YOU CALL IT THE RECENT TURMOIL IN EUROPEAN BOND MARKETS TAUGHT SOME PRACTITIONERS INCLUDING BANKS AND SECURITIES FIRMS THAT WERE HEDGING OPTIONS SALES TO HEDGE FUNDS AND OTHER INVESTORS THE SAME PAINFUL LESSONS OF EARLIER PORTFOLIO INSURERS DELTAHEDGING CAN BREAK DOWN IN VOLATILE MARKETS JUST WHEN IT IS NEEDED MOST WHAT'S MORE AT SUCH TIMES IT CAN ACTUALLY FEED VOLATILITY THE COMPLEXITIES OF HEDGING CERTAIN HOTSELLING EXOTIC OPTIONS MAY ONLY COMPOUND SUCH GLITCHES THE TRIEDANDTRUE STRATEGIES FOR HEDGING THESE PRODUCTS WORK FINE WHEN THE MARKETS AREN'T SUBJECT TO SHARP MOVES OR LARGE SHOCKS SAYS VICTOR S FILATOV PRESIDENT OF SMITH BARNEY GLOBAL CAPITAL MANAGEMENT IN LONDON BUT TURBULENT TIMES CAN START CAUSING PROBLEMS FOR PEOPLE WHO NORMALLY HAVE THESE RISKS UNDER CONTROL OPTIONS ARE FINANCIAL ARRANGEMENTS THAT GIVE BUYERS THE RIGHT TO BUY OR SELL SECURITIES OR OTHER ASSETS AT PREARRANGED PRICES OVER SOME FUTURE PERIOD AN OPTION CAN GYRATE WILDLY IN VALUE WITH EVEN MODEST CHANGES IN THE UNDERLYING SECURITY'S PRICE THE RELATIONSHIP BETWEEN THE TWO IS KNOWN AS THE OPTION'S DELTA THUS DEALERS IN THESE INSTRUMENTS NEED SOME WAY TO HEDGE THEIR DELTA TO CONTAIN THE RISK HOW YOU DELTAHEDGE DEPENDS ON THE BETS YOU'RE TRYING TO HEDGE FOR INSTANCE DELTAHEDGING WOULD PROMPT OPTIONS SELLERS TO SELL INTO FALLING MARKETS AND BUY INTO RALLIES IT WOULD GIVE THE OPPOSITE DIRECTIONS TO OPTIONS BUYERS SUCH AS DEALERS WHO MIGHT HOLD BIG OPTIONS INVENTORIES CONSEQUENTLY IT IS THE OPTION SELLERS NOT THE BUYERS WHO LOSE WHEN MARKETS GET JARRED THOSE WHO HAVE BOUGHT OPTIONS ACTUALLY REAP WINDFALL PROFITS WHEN VOLATILITY SPIKES THAT'S BECAUSE IN CONTRAST TO OPTION SELLERS THEIR DELTAHEDGES ARE PROGRAMMED TO CONTINUALLY BUY AS MARKETS SPIKE DOWN AND SELL WHEN PRICES BOUNCE AND BECAUSE THEY ARE CONSTANTLY TRADING AGAINST THE TREND THEY NOT ONLY PROFIT BUT ALSO HELP DAMP VOLATILITY IN THEORY DELTAHEDGING TAKES PLACE WITH COMPUTERTIMED PRECISION AND THERE AREN'T ANY SNAGS BUT IN REAL LIFE IT DOESN'T ALWAYS WORK SO SMOOTHLY WHEN VOLATILITY ENDS UP BEING MUCH GREATER THAN ANTICIPATED YOU CAN'T GET YOUR DELTA TRADES OFF AT THE RIGHT POINTS SAYS AN EXECUTIVE AT ONE BIG DERIVATIVES DEALER IN A CHOPPY MARKET LIKE WE SAW RECENTLY IN EUROPEAN BONDS PEOPLE CAN END UP CHASING THEIR TAILS AND WHEN DELTA HEDGES GO AWRY DEALERS SUDDENLY MAY NOT WANT TO DO THE BUSINESS BECAUSE THE RISKMANAGEMENT TOOLS AREN'T IN PLACE SAYS MR FILATOV THE MARKETMAKING PROCESS FOR COMPLICATED PRODUCTS CAN BREAK DOWN HOW DOES THIS HAPPEN TAKE THE RELATIVELY SIMPLE CASE OF DEALERS WHO SELL CALL OPTIONS ON LONGTERM TREASURY BONDS SUCH OPTIONS GIVE BUYERS THE RIGHT TO BUY BONDS AT A FIXED PRICE OVER A SPECIFIC TIME PERIOD AND COMPARED WITH BUYING BONDS OUTRIGHT THESE OPTIONS ARE MUCH MORE SENSITIVE TO MARKET MOVES FOR INSTANCE A CALL OPTION TO BUY 1 MILLION WORTH OF TREASURY BONDS AT CURRENT PRICES DURING THE NEXT SIX MONTHS WOULD COST THE BUYER ABOUT 21100 ACCORDING TO THOMAS HO PRESIDENT OF GLOBAL ADVANCED TECHNOLOGY CORP A NEW YORK FINANCIAL RESEARCH FIRM IF INTEREST RATES WERE TO FALL 075 PERCENTAGE POINT IN THAT PERIOD THE UNDERLYING BONDS WOULD GAIN JUST 9 HE CALCULATES BY CONTRAST THE OPTION'S VALUE WOULD SOAR TO 84300 A 300 GAIN THE REVERSE IS TRUE FOR THE DEALER WHO SELLS THE CALL OPTION IF THE BUYER LOSES THE SELLER WINS BUT THE MOST HE CAN MAKE IS THE 21100 PREMIUM BUT IF THE BUYER WINS THE DEALER'S LOSSES ARE POTENTIALLY INFINITE SINCE HE'S THE ONE WHO MUST PAY THE TAB FOR THE BUYER'S HUGE GAINS THAT'S WHERE DELTAHEDGING COMES IN TO DELTAHEDGE THE ABOVE TREASURY CALL OPTION FOR EXAMPLE THE DEALER WOULD START BY IMMEDIATELY BUYING 508731 OF BONDS MR HO SAYS AS PRICES ROSE HE WOULD BUY MORE AND MORE BONDS TO THE POINT THAT HE'D OWN SOME 1 MILLION OF BONDS BEFORE INTEREST RATES MOVED 075 PERCENTAGE POINT AGAINST HIM BUT IF BOND PRICES WENT SOUTH INSTEAD OWNING 508731 OF BONDS AS A HEDGE WOULD COST MONEY RATHER THAN OFFER PROTECTION SO THE DEALER WOULD UNWIND IT BY SELLING BONDS BY THE TIME RATES HAD MOVED 075 POINT HE WOULD HAVE SOLD ALMOST HIS ENTIRE 508731 HEDGE THAT'S EXACTLY THE KIND OF MANEUVER DEALERS ATTEMPTED IN RECENT WEEKS WHEN EUROPEAN BOND PRICES STARTED TO TUMBLE EARLIER THIS YEAR WHEN BOND BULLS WERE RAGING INTERNATIONAL BANKS AND SECURITIES FIRMS AGGRESSIVELY SOLD CALL OPTIONS TO INVESTORS INCLUDING HIGHLY LEVERAGED HEDGEFUND TRADERS TRADERS SAY BECAUSE SELLING THE CALLS MADE THOSE DEALERS VULNERABLE TO A RALLY THEY DELTAHEDGED BY BUYING BONDS AS BOND PRICES TURNED SOUTH THE DEALERS SHED THEIR HEDGES BY SELLING BONDS ADDING TO THE SELLING ORGY THE PLUNGING MARKETS FORCED THEM TO SELL AT LOWER PRICES THAN EXPECTED CAUSING UNEXPECTED LOSSES ON THEIR HEDGES MAKING THINGS WORSE WAS ANOTHER GROUP OF OPTIONS PLAYERS THESE WERE SPECULATORS WHO BOUGHT CALLS EARLY IN THE YEAR AND PAID FOR THEM BY SELLING BEARISH PUT OPTIONS TO OTHER INVESTORS PUT OPTIONS ARE THE RIGHT TO SELL RATHER THAN BUY SECURITIES AT A FIXED PRICE IN A GIVEN PERIOD PUTS ARE IN HOT DEMAND IN FALLING MARKETS BECAUSE THEY ALLOW BUYERS TO STOP THEIR LOSSES AT A PRESET FLOOR AT SUCH TIMES PUTS SOAR IN VALUE POSING POTENTIALLY UNLIMITED LOSSES FOR SELLERS SO WHEN THE CRUNCH CAME IN EUROPE THESE TRADERS TOO BEGAN HEDGING THEIR BETS BY FRANTICALLY SELLING INTO THE ROUT PEOPLE SOLD IN THE BOND MARKET UNTIL PRICES GOT PUSHED TOO FAR THEN IN THE BONDFUTURES MARKETS THEN THE SWAP MARKET AND THEN THEY STARTED TRYING TO HEDGE IN OTHER INSTRUMENTS LIKE SELLING GERMAN BONDS TO HEDGE LOSSES IN ITALIAN BONDS UNTIL ALL THE MARKETS WERE ROLLING ALONG IN THE SAME BLACK HOLE SAYS A DEALER AT ONE EUROPEAN BANK SOME DEALERS WHO WERE DELTAHEDGING COMPLEX EXOTIC OPTIONS SUCH AS RANGE FORWARDS WHICH COMBINE CAPS AND FLOORS ON INTEREST RATES WERE ESPECIALLY HARD HIT BY THE TURMOIL TRADERS SAY THE DAYTODAY WHIPSAWS IN THE MARKET WERE SO HUGE THAT THESE HEDGES BECAME VERY UNSTABLE SAYS A DERIVATIVES DEALER AT ONE NEW YORK BANK TO BE SURE TRADERS SAY DELTAHEDGING WASN'T THE MAIN SOURCE OF SELLING IN THE MARKETS' FALL THAT DUBIOUS HONOR GOES TO THE HUGE DUMPING BY SPECULATORS OF BOND AND STOCK HOLDINGS THAT WERE PURCHASED WITH BORROWED MONEY WHILE EXPERTS MAY AGREE THAT DELTAHEDGING DOESN'T ACTUALLY CAUSE CRASHES IN SOME CASES IT CAN SPEED THE DECLINE ONCE PRICES SLIP BY THE SAME TOKEN DELTAHEDGING ALSO TENDS TO BUOY PRICES ONCE THEY TURN UPWHICH MAY BE ONE REASON WHY MARKETS CORRECT SO SUDDENLY THESE DAYS MICHAEL R SESIT CONTRIBUTED TO THIS ARTICLE A DEALER A CALL OPTION THAT GIVES THE CUSTOMER THE RIGHT TO BUY 1 MILLION IN 20YEAR TREASURYS AT TODAY'S PRICE OVER SIX MONTHS THE CUSTOMER PAYS 2100 FOR THE OPTION SINCE THE DEALER WILL OWE THE CUSTOMER MONEY IF BOND PRICES RISE HE INITIATES A DELTAHEDGE BY BUYING ABOUT 509000 OF TREASURY BONDS DEALER SELLS BONDS BEACUSE THE HEDGE LOSES MONEY THE DEALER UNWINDS IT BY SELLING TREASURY BONDS FOR INSTANCE A 025 PERCENTAGEPOINT RISE WOULD REQUIRE HIM TO SELL ABOUT 152000 IN BONDS A FURTHER 05 POINT SPIKE IN RATES WOULD CAUSE HIM TO SELL ANOTHER 357000 IN TREASURY BONDS VIRTUALLY UNWINDING THE ENTIRE HEDGE DEALER BUYS BONDS BECAUSE THE HEDGE IS NO LONGER BIG ENOUGH THE DEALER ADDS TO IT BY BUYING TREASURY BONDS A 025 PERCENTAGEPOINT DROP IN RATES WOULD REQUIRE HIM TO BUY AN ADDITIONAL 168000 IN BONDS A FURTHER 05 POINT RISE WOULD MEAN PURCHASING ANOTHER 291000 IN BONDS FOR OPTIONS SELLERS LIKE THIS DEALER DELTAHEDGING MEANS ALWAYS CHASING AFTER THE PRICE MOVES IN THE MARKET IF VOLATILITY ERUPTS UNEXPECTEDLY HIS HEDGE MAY FALL BEHIND AND EXACERBATE THE VERY LOSSES IT WAS DESIGNED TO CUSHION 9403170013 940317 CONFEDERATION LIFE TOLD BY S&P ITS RATING HINGES ON NEW CAPITAL STANDARD & POOR'S CORP SAID IT WILL LOWER ITS RATINGS OF CONFEDERATION LIFE INSURANCE CO'S CLAIMSPAYING ABILITY AND DEBTS UNLESS THE BIG CANADIAN INSURER CAN NEGOTIATE AN INVESTMENT OF NEW CAPITAL FROM ANOTHER FINANCIAL INSTITUTION CONFEDERATION LIFE WHOSE EARNINGS AND CAPITAL BASE HAVE BEEN HURT BY CONTINUING LOSSES FROM ITS REALESTATE PORTFOLIO SAID IT IS NEGOTIATING WITH AN UNNAMED POTENTIAL INVESTOR BUT DECLINED TO PROVIDE DETAILS S&P SAID THE NEGOTIATIONS COULD PROVIDE THE INSURANCE CONCERN WITH A SIZABLE CAPITAL INFUSION AS WELL AS A POSSIBLE STRATEGIC AFFILIATION CONFEDERATION LIFE'S SEARCH FOR A PARTNER IS A CONSEQUENCE OF THE COMPANY'S AGGRESSIVE PUSH INTO PROPERTY LENDING IN THE 1980S PUBLISHED REPORTS IN TORONTO HAVE SUGGESTED THAT CONFEDERATION LIFE IS NEGOTIATING A POSSIBLE MERGER WITH GREATWEST LIFE ASSURANCE CO OF WINNIPEG MANITOBA AN INDIRECT SUBSIDIARY OF POWER FINANCIAL CORP MONTREAL SUCH A MERGER WOULD BRING TOGETHER TWO OF THE THREE BIGGEST COMPANIES IN CANADA'S GROUP INSURANCE MARKET A GREATWEST LIFE SPOKESWOMAN SAID THE COMPANY IS INTERESTED IN ACQUISITIONS BUT DECLINED TO ELABORATE FOR NOW S&P AND OTHER CREDITRATING CONCERNS PLACED ON THEIR WATCH LISTS WITH NEGATIVE IMPLICATIONS THE CLAIMSPAYING ABILITY AND DEBTS OF CONFEDERATION LIFE AND ITS US SUBSIDIARY S&P SAID IT WOULD DROP CONFEDERATION LIFE'S RATING TO SINGLEA OR SINGLEAMINUS FROM DOUBLEAMINUS CURRENTLY IF THE INSURER DOESN'T OBTAIN NEW CAPITAL S&P OFFICIALS SAID A LOWER RATING WOULD MAKE IT HARDER FOR THE COMPANY TO COMPETE AGAINST OTHER FINANCIALLY STRONGER INSURANCE CONCERNS IN THE US AND CANADA 9403170012 940317 JEFFERIES'S STOCK JUMPS 31 ON PLAN FOR IPO FOR UNIT BY MICHAEL SANTOLI SPECIAL TO THE WALL STREET JOURNAL NEW YORK SHARES OF JEFFERIES GROUP INC SOARED 31 IN THE WAKE OF TUESDAY'S ANNOUNCEMENT THAT THE BROKERAGE FIRM PLANS TO SELL A STAKE IN ITS AUTOMATED STOCK TRADING SUBSIDIARY THROUGH AN INITIAL PUBLIC OFFERING JEFFERIES A MAJOR PLAYER IN OFFEXCHANGE THIRDMARKET TRADING SERVICES SAID AFTER THE CLOSE OF TRADING TUESDAY IT WOULD OFFER ABOUT 18 OF INVESTMENT TECHNOLOGY GROUP INC TO THE PUBLIC AT A PROPOSED PRICE OF 12 TO 14 A SHARE THE SUBSIDIARY HAS A HYPOTHETICAL MARKET VALUE OF ABOUT 240 MILLION THAT'S SLIGHTLY HIGHER THAN THE CURRENT MARKET VALUATION OF JEFFERIES AS A WHOLE WHICH EVEN WITH YESTERDAY'S STOCK RISE IS ABOUT 220 MILLION JEFFERIES SHARES CLOSED AT 40125 UP 950 ON NASDAQ STOCK MARKET VOLUME OF 216300 AVERAGE DAILY VOLUME IS 16200 SHARES GERARD MCMAHON WHO FOLLOWS JEFFERIES'S AS DIRECTOR OF RESEARCH AT THOMAS JAMES ASSOCIATES SAID THE GROUP'S STOCK HAS JUMPED BECAUSE INVESTORS FEEL THE AUTOMATED TRADING SYSTEMS BUSINESS HAS BEEN A DRAG ON EARNINGS ITG'S OPERATIONS ARE VERY CAPITALINTENSIVE AND WHILE THEY ACCOUNT FOR A LARGE PORTION OF JEFFERIES' REVENUE THEY HAVEN'T BEEN NEARLY AS PROFITABLE AS THE REST OF THE FIRM INVESTORS FEEL THAT ONCE JEFFERIES IS FREE OF ITG'S LOW PROFIT MARGIN IT CAN DO EVEN BETTER MR MCMAHON SAID JOHN KEEFE A FINANCIALSERVICES CONSULTANT SAID PART OF THE REASON FOR CARVING OUT ITG IS TO RECOGNIZE ITS FASTER GROWTH RATE WHICH COMMANDS A HIGHER STOCKMARKET MULTIPLE ITG'S OPERATIONS INCLUDE POSIT AND QUANTEX WHICH ARE AUTOMATED STOCK CROSSING ROUTING AND ANALYSIS SYSTEMS JEFFERIES'S OTHER BUSINESSES INCLUDE STOCK BROKERAGE AND INVESTMENT BANKING MR KEEFE SAID JEFFERIES'S OFFICERS THINK THEY HAVE A JEWEL IN ITG AND THEY WANT THE WORLD TO REALIZE IT'S THERE JEFFERIES BY RETAINING A MAJORITY STAKE IN ITG AND HIGHLIGHTING ITS VALUE HOPES TO CREATE MORE VALUE FOR THE FIRM AS A WHOLE HE SAID A JEFFERIES OFFICIAL SAID HE WAS UNABLE TO COMMENT BECAUSE THE OFFERING IS IN REGISTRATION JEFFERIES'S STOCK IS THINLY TRADED SINCE THERE ARE ONLY 57 MILLION SHARES OUTSTANDING AND A MAJORITY ARE IN THE HANDS OF EMPLOYEES FOR THIS REASON BUYING OR SELLING PRESSURE IS SOMETIMES EXAGGERATED BY WIDE SIZABLE CHANGES IN SHARE PRICE 9403170011 940317 FUNDING PLANS FOR HEALTH CARE ARE REJECTED TAX AND PREMIUM INCREASES TO ENHANCE BENEFITS LOSE IN HOUSE PANEL BY HILARY STOUT AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE WAYS AND MEANS HEALTH SUBCOMMITTEE REJECTED A SERIES OF TAX AND PREMIUM INCREASES DESIGNED TO SUBSIDIZE SMALL BUSINESSES AND ENRICH THE HEALTH BENEFITS THAT WOULD BE PROMISED IN HEALTHCARE OVERHAUL LEGISLATION ON A 65 ROLL CALL THAT DIVIDED BOTH PARTIES THE SUBCOMMITTEE TABLED A BID TO RAISE CIGARETTE TAXES TO 2 A PACK TO FINANCE SUBSIDIES FOR SMALL EMPLOYERS MEANWHILE LIBERAL EFFORTS TO PROVIDE LONGTERM CARE FOR THE DISABLED AND CHRONICALLY ILL FLOUNDERED AMID DEMOCRATIC DIVISIONS OVER A PROPOSED PAYROLLTAX BOOST TO FINANCE THE BENEFIT REP JOHN LEWIS D GA WHO CAST THE PIVOTAL VOTE TABLING THE TOBACCOTAX PROVISION SAID LAST NIGHT THAT HE MAY MOVE TO RECONSIDER THE ISSUE TODAY CONFLICTS AMONG DEMOCRATS ON THE ISSUE UNDERSCORE THE FISCAL PRESSURE ON LAWMAKERS AS THEY TRY TO DEVISE A PLAN COSTING LESS THAN THE CLINTON ADMINISTRATION'S AMBITIOUS HEALTH PROPOSAL LIKE PRESIDENT CLINTON'S PLAN THE DEMOCRATICBACKED ALTERNATIVE BEFORE THE PANEL WOULD REQUIRE ALL EMPLOYERS TO HELP PAY FOR THEIR EMPLOYEES' HEALTH INSURANCE BUT IT WOULD GIVE FIRMS OF 100 OR FEWER EMPLOYEES THE OPTION OF COVERING THEIR WORKERS THROUGH A NEW ARM OF THE FEDERAL MEDICARE PROGRAM THE SUBCOMMITTEE BILL ALSO WOULD DESIGNATE A STANDARD PACKAGE OF BENEFITS FOR AMERICANS AS WOULD THE CLINTON PROPOSAL BUT THE SUBCOMMITTEE'S BENEFITS WOULD BE LESS GENEROUS AND CONSEQUENTLY LESS COSTLY THAN THE PACKAGE IN THE CLINTON BILL YESTERDAY THE SECOND DAY OF VOTING ON THE HEALTHOVERHAUL LEGISLATION REP JIM MCDERMOTT D WASH PROPOSED INCREASING ANNUAL PREMIUMS FOR THE EXPANDED MEDICARE PROGRAM BY ABOUT 20 TO BRING THE BENEFITS MORE IN LINE WITH THE ADMINISTRATION'S PROPOSAL BUT THAT WAS TOO MUCH FOR THE REPUBLICANS AND MANY OF REP MCDERMOTT'S FELLOW DEMOCRATS YOU CAN'T GIVE EVERYBODY VERY MUCH FOR NOTHING SAID DR MCDERMOTT WHO IS A PSYCHIATRIST HE ARGUED THAT THE BILL WOULD SANCTION A TWOTIERED SYSTEM OF HEALTHCARE FOR THE NATION ONE TIER FOR PRIVATE PATIENTS AND ANOTHER FOR THOSE WHO OBTAIN GOVERNMENT COVERAGE WE ARE GOING TO PUT PEOPLE INTO A VERY SKIMPY HOUSE WITH A LOT OF SHAKY ASPECTS TO IT IF WE AREN'T WILLING TO RAISE REVENUES HE SAID IN OTHER ACTION DEMOCRATS ON THE PANEL UPHELD A SERIES OF MEASURES DESIGNED TO GIVE THE FEDERAL GOVERNMENT GREATER CONTROL OVER THE COST AND USE OF PRESCRIPTION DRUGS SPECIFICALLY THE PANEL VOTED IN FAVOR OF PROVISIONS AUTHORIZING THE SECRETARY OF HEALTH AND HUMAN SERVICES TO NEGOTIATE REBATES ON NEW DRUGS AND TO MONITOR THE PRESCRIBING AND DRUGDISPENSING PRACTICES OF PHYSICIANS UNDER THE EXPANDED MEDICARE PROGRAM REP WILLIAM THOMAS R CALIF HAD PROPOSED DROPPING THE PROVISIONS FROM THE DEMOCRATIC ALTERNATIVE WHICH WAS WRITTEN BY REP PETE STARK D CALIF THE PANEL'S CHAIRMAN PANEL MEMBERS DID APPROVE ONE THOMAS AMENDMENT STRIKING A PROVISION THAT WOULD HAVE GIVEN THE SECRETARY POWER TO ESTABLISH THE MINIMUM AND MAXIMUM DOSAGE ON PRESCRIPTIONS AND TO LIMIT REFILLS BY A UNANIMOUS VOICE VOTE THE COMMITTEE APPROVED AN AMENDMENT THAT WOULD ADD A NUMBER OF MENTALHEALTH AND SUBSTANCEABUSE BENEFITS TO THE BENEFITS PACKAGE INCLUDING 90 DAYS OF OUTPATIENT PSYCHOTHERAPY FOR PEOPLE UNDER 18 AND UP TO 135 DAYS A YEAR OF INTENSIVE RESIDENTIAL SERVICES FOR DETOXIFICATION AND TREATMENT OF MENTAL ILLNESS SOME MEMBERS COMPLAINED HOWEVER THAT THE EXPANDED MENTALHEALTH BENEFITS WEREN'T ENOUGH I RECOGNIZE THAT THIS IS JUST A FIRST STEP TOWARD REDUCING THE STIGMA AND CREATING PARITY IN HEALTH CARE FOR PERSONS WITH MENTAL ILLNESS SAID MR STARK WHO INTRODUCED THE AMENDMENT YESTERDAY'S DEBATE OVER REVENUES UNDERSCORED DIVISIONS AMONG DEMOCRATS OVER THE COST OF THE MEASURE AND THE RELATIVE IMPORTANCE OF ENHANCING BENEFITS AND ENRICHING SMALLBUSINESS SUBSIDIES REP LEWIS SAID LAST NIGHT HE SUPPORTED THE TAX INCREASE BUT WANTED SOME OF THE REVENUE RESERVED FOR LONGTERM CARE BY CONTRAST DEMOCRATS SUCH AS REP SANDER LEVIN OF MICHIGAN EMBRACED THE INCREASE AS THE BEST WAY TO RAISE MONEY TO HELP SMALL BUSINESSES PAY FOR THEIR EMPLOYEES' HEALTH INSURANCE CURRENTLY FEDERAL TOBACCO TAXES ARE ABOUT 24 CENTS ON EACH PACK OF CIGARETTES THE ADMINISTRATION PROPOSES INCREASING THEM TO 1 WHILE THE AMENDMENT CONSIDERED BY THE COMMITTEE YESTERDAY WOULD HAVE BOOSTED THE TOTAL LEVY TO ABOUT 2 THE PROPOSED INCREASE DRAFTED BY REP MIKE ANDREWS D TEXAS WOULD HAVE RAISED AN ADDITIONAL 12 BILLION IN ANNUAL REVENUE TWOTHIRDS OF THIS WOULD HAVE GONE TO SMALL BUSINESS AND THE REMAINING 4 BILLION WOULD HAVE BEEN DIVIDED AMONG A VARIETY OF PUBLICHEALTH INITIATIVES THE SUBCOMMITTEE ONE OF NUMEROUS HOUSE AND SENATE PANELS THAT MUST REVIEW HEALTHCARE PROVISIONS BEFORE FINAL LEGISLATION IS PASSED HOPES TO APPROVE A BILL AND SEND IT TO THE FULL WAYS AND MEANS COMMITTEE NEXT WEEK AFTER A RELATIVELY CONGENIAL ALBEIT PARTISAN DAY OF VOTING TUESDAY THE PANEL OF SEVEN DEMOCRATS AND FOUR REPUBLICANS SANK INTO TESTY BICKERING YESTERDAY THE MOST TENSE MOMENT CAME WHEN REP STARK QUIPPED THAT REP NANCY JOHNSON R CONN WHO IS MARRIED TO A PHYSICIAN OBTAINED HER MEDICAL KNOWLEDGE FROM PILLOW TALK MRS JOHNSON IMMEDIATELY SHOT BACK I DISSENT FROM THAT COMMENT MY HUSBAND IS A PHYSICIAN I RESPECT THE FACT THAT HE KEEPS HIS BUSINESS ENTIRELY TO HIMSELF I GET MY KNOWLEDGE OF THE MEDICAL SYSTEM FROM ENDLESS HOURS OF WORK AS A REPRESENTATIVE IN THIS CONGRESS IN HOSPITALS AND PHYSICIANS' OFFICES TALKING WITH PATIENTS MR STARK LATER APOLOGIZED TO MRS JOHNSON 9403170010 940317 BUSINESS BRIEF SHERWINWILLIAMS CO SETTLES CALIFORNIA SUITS ON PRODUCT TOXINS SAN FRANCISCO SHERWINWILLIAMS CO WAS ASSESSED 1 MILLION IN PENALTIES AS PART OF A SETTLEMENT OF LAWSUITS ALLEGING THAT THE COMPANY VIOLATED CALIFORNIA'S TOUGH ANTITOXICS LAW THE BIG PAINT MAKER ALSO AGREED TO EXPLORE WHETHER IT CAN EITHER REMOVE TOLUENE A TOXIC HYDROCARBON FROM ITS SPRAY PAINTS AND ADHESIVES OR DEVISE NONTOXIC ALTERNATIVE PRODUCTS UNDER CERTAIN CIRCUMSTANCES COSTS OF THAT EFFORT COULD BE USED TO OFFSET PART OF THE 1 MILLION FINE IN THE MEANTIME SHERWINWILLIAMS AGREED TO PUT LABELS ON SPRAY PAINTS AND ADHESIVES SOLD IN CALIFORNIA WARNING THAT THOSE PRODUCTS CONTAIN POTENTIALLY DANGEROUS CHEMICALS THE SETTLEMENT IS PART OF A BROAD AGREEMENT ENDING VARIOUS SUITS AGAINST SHERWINWILLIAMS AND ABOUT 37 OTHER SPRAY PAINT AND ADHESIVE MANUFACTURERS AND RETAILERS THE SUITS WERE BROUGHT BY AS YOU SOW AN ENVIRONMENTAL GROUP AND THE STATE ATTORNEY GENERAL'S OFFICE THE SUITS ALLEGED THAT THE COMPANIES VIOLATED CALIFORNIA'S PROP 65 A LAW THAT LIMITS CERTAIN TOXINS IN PRODUCTS SOLD IN CALIFORNIA AND REQUIRES THAT PRODUCTS CONTAINING CERTAIN TOXINS CARRY WARNING LABELS THE 1 MILLION PENALTY IS THE LARGEST EVER ASSESSED UNDER THE LAW OTHER COMPANIES INVOLVED IN THE SETTLEMENT AGREED TO PAY A TOTAL OF 200000 THE SETTLEMENT COULD HAVE NATIONAL IMPACT IF SHERWINWILLIAMS CAN REFORMULATE THE PRODUCTS FOR THE HUGE CALIFORNIA MARKET IT LIKELY WOULD REFORMULATE THEM FOR SALE IN OTHER MARKETS ENVIRONMENTALISTS SAID SHERWINWILLIAMS BASED IN SOLON OHIO SAID IT AGREED TO THE SETTLEMENT WITHOUT ADMITTING ANY GUILT IT CHARACTERIZED THE DISPUTE AS STEMMING FROM DIFFERENT INTERPRETATIONS OF VARIOUS REGULATIONS 9403170009 940317 TECHNOLOGY & HEALTH CALIFORNIA MICRO STOCK JUMPS 52 AS HITACHI PLANS TO ACQUIRE STAKE MILPITAS CALIF A UNIT OF HITACHI LTD SAID IT WILL PAY 211 MILLION FOR A 10 STAKE IN CALIFORNIA MICRO DEVICES CORP IN AN ALLIANCE THAT COULD RAISE THE PROFILE OF A LITTLEKNOWN SEMICONDUCTOR TECHNOLOGY WITH BIG POTENTIAL THE NEWS SENT CALIFORNIA MICRO'S STOCK UP 52 OR 725 TO 2125 IN NASDAQ STOCK MARKET TRADING HITACHI METALS LTD SAID IT WOULD BUY 880000 SHARES FOR 24 EACH A HEFTY PREMIUM OVER CALIFORNIA MICRO'S RECENT TRADING PRICE IN EXCHANGE FOR THE CASH CALIFORNIA MICRO WILL LICENSE HITACHI TO JOINTLY MANUFACTURE AND MARKET A TECHNOLOGY DUBBED THINFILM INTEGRATED PASSIVE ELECTRONIC COMPONENTS OR IPECS THAT CAN SLASH THE NUMBER OF DEVICES AND MANUFACTURING STEPS THAT COMPUTER COMPANIES AND OTHERS NEED TO MAKE THEIR PRODUCTS IN ADDITION TO INTEGRATED CIRCUIT CHIPS COMPUTERS REQUIRE HUNDREDS OF RESISTORS CAPACITORS AND OTHER COMPONENTS THAT ARE MADE FROM BULKY CERAMIC MATERIALS AND MUST BE SEPARATELY PLACED ON CIRCUIT BOARDS CALIFORNIA MICRO EXPLOITING TECHNOLOGY DEVELOPED FOR MILITARY CONTRACTS OVER 14 YEARS PACKS THOSE COMPONENTS TOGETHER IN TINY SPACES BY LAYING DOWN THIN FILMS OF SPECIAL METALS ON SILICON WAFERS ABOUT FIVE OF THESE IPECS CAN REPLACE ABOUT 350 COMPONENTS ON A STANDARD PC CIRCUIT BOARD THE COMPANY SAYS THOMAS THORNHILL AN ANALYST AT MONTGOMERY SECURITIES SAID HITACHI'S MANUFACTURING AND MARKETING MUSCLE SHOULD ENABLE THE COMPANIES TO BEGIN TO TAKE A SIGNIFICANT CHUNK OF THE 8 BILLION TO 10 BILLION MARKET FOR THE OLDER COMPONENT TECHNOLOGY IN THE SIX MONTHS ENDED DECEMBER 31 CALIFORNIA MICRO DEVICES EARNED 18 MILLION OR 24 CENTS A SHARE ON SALES OF 102 MILLION 9403170007 940317 GENERAL MOTORS CORP PRICES CHEVY LUMINA BELOW FORD TAURUS DETROIT GENERAL MOTORS CORP'S CHEVROLET DIVISION LOOKING TO STOP A DECADELONG SALES SLIDE YESTERDAY PRICED ITS REDESIGNED 1995 LUMINA FAMILY SEDAN 780 OR MORE BELOW ITS BESTSELLING RIVAL THE FORD TAURUS AND UNVEILED NEW ADVERTISING TO GO WITH THE NEW CAR BOTH MOVES ARE PART OF GM'S EFFORT TO PUT ITS NO 1 SELLING BRAND BACK ON TRACK AFTER SEVERAL YEARS OF LACKLUSTER PRODUCTS AND SHOPWORN SALES PITCHES THE 1995 LUMINA WILL HIT SHOWROOMS IN EARLY SUMMER WITH A BASE PRICE OF 15995 COMPARED WITH 16775 FOR THE CHEAPEST FORD TAURUS THE BESTSELLING CAR IN THE US FOR THE PAST TWO YEARS ADJUSTING FOR THE FACT THAT AIR CONDITIONING IS STANDARD ON THE LUMINA AND OPTIONAL ON THE CHEAPEST TAURUS GL THE NEW CHEVROLET SEDAN'S STICKER PRICE COULD BE 1000 TO 1500 LESS THAN A COMPARABLE TAURUS A CHEVROLET SPOKESMAN SAID THAT STICKER PRICE COMPARISON HOWEVER DOESN'T NECESSARILY REFLECT WHAT CONSUMERS WILL REALLY PAY FOR INSTANCE IF FORD MOTOR CO OFFERS AN AGGRESSIVE LEASE DEAL AS IT HAS IN THE PAST CONSUMERS COULD PAY LESS PER MONTH FOR A TAURUS THAN FOR A NEW LUMINA PURCHASED AT GM'S VALUE STICKER PRICE HONDA MOTOR CO HAS RECENTLY OFFERED TO LEASE ITS ACCORD FAMILY SEDAN FOR AS LITTLE AS 199 A MONTH FOR TWO YEARS TO REPAIR ITS IMAGE IN ADVANCE OF THE NEW LUMINA'S LAUNCH CHEVROLET WILL REV UP ADVERTISING UNDER THE NEW SLOGAN GENUINE CHEVROLET THE THEME REPLACES THE SIXYEAROLD HEARTBEAT OF AMERICA CAMPAIGN THAT HAS BEEN LIMPING TOWARD THE EXIT FOR MORE THAN A YEAR CHEVY WILL OFFICIALLY LAUNCH ITS NEW IMAGE CAMPAIGN TONIGHT DURING CBS'S COVERAGE OF THE NCAA BASKETBALL TOURNAMENT 9403170006 940317 LETTERS TO THE EDITOR NOT BALANCING BUDGET IS SLOW FISCAL SUICIDE IN RESPONSE TO ALBERT R HUNT'S FEB 10 POLITICS & PEOPLE COLUMN THE BALANCEDBUDGET HOAX WE OFTEN REFER TO THE FEDERAL BUDGET/DEBT AS IF IT BELONGED TO SOMEONE ELSE IT IS OURS MR HUNT APPEARS TO ADVOCATE CONTINUING OUR US FISCAL SLOW SUICIDE INTEREST ON OUR DEBT NOW CONSUMES ABOUT 15 OF OUR BUDGET AND IS CLIMBING IF WE DO NOT CONTROL OUR DEBTS NOW WHEN WILL WE SHALL WE WAIT UNTIL THE INTEREST CONSUMES 20 25 30 OR MORE OF OUR BUDGET CLEARLY AT THOSE MARKS IT IS INFINITELY MORE DIFFICULT TO BALANCE OUR BUDGET BY TRADITIONAL METHODS A POSSIBLE ALTERNATIVE TO BALANCING THESE BUDGETS IS TO SUBSTANTIALLY INFLATE OUR CURRENCY AND THUS EFFECTIVELY REDUCE THE VOLUME OF OUR DEBT AND ENTITLEMENTS THAT WOULD NOT BE A SOUND STRATEGIC CHOICE AS TIME PASSES OUR GOAL IS EVERMORE ELUSIVE IN PART DUE TO THE ACCUMULATION OF DEBT FROM PRIOR YEARS IN THE HEARTLAND MANY OF US WILL BE WATCHING THE BALANCED BUDGET AMENDMENT VOTE AND ITS PRESUMED IMPLEMENTATION WITH GREAT INTEREST ALL OF US MAY BE ABLE TO EXPERIENCE THE EFFECTS OF BALANCING THE BUDGET TODAY HOWEVER SOME OF US AS WELL AS OUR CHILDREN ARE ALSO YOUNG ENOUGH TO BE ABLE TO EXPERIENCE THE EFFECTS RESULTING FROM INACTION ON THIS CRUCIAL MATTER I FOR ONE BELIEVE THAT OUR COUNTRY'S FUTURE IS DEPENDENT ON STABLE FISCAL FOOTINGS 9403170005 940317 BUSINESS BRIEF TANKNOLOGY ENVIRONMENTAL INC FIRM SEES LOSS FOR QUARTER AS COMPANIES DELAY TESTING TANKNOLOGY ENVIRONMENTAL INC SAID IT WILL REPORT A LOSS FOR THE FIRST QUARTER BECAUSE SOME MAJOR CUSTOMERS ARE DELAYING ANNUAL TANKTESTING PROGRAMS THE HOUSTON COMPANY ALSO SAID IT WILL RESUME ITS STOCK BUYBACK PROGRAM APPROVED IN 1992 TANKNOLOGY WHICH CURRENTLY HAS ABOUT 15 MILLION COMMON SHARES OUTSTANDING IS AUTHORIZED TO BUY BACK AS MANY AS 600000 SHARES THE ENVIRONMENTALSERVICES CONCERN SAID IT DOESN'T EXPECT THE LOSS FOR THE QUARTER TO EXCEED THE LOSS OF 515000 OR THREE CENTS A SHARE REPORTED FOR THE 1992 FIRST QUARTER FOR THE 1993 FIRST QUARTER TANKNOLOGY HAD NET INCOME OF 265000 OR TWO CENTS A SHARE ALTHOUGH FIRSTQUARTER OPERATING PROFITS WILL DECLINE MANAGEMENT REMAINS OPTIMISTIC REGARDING THE FULLYEAR OUTLOOK SAID DONALD R CAMPBELL PRESIDENT AND CHIEF OPERATING OFFICER FEDERAL AND STATE REGULATIONS CALL FOR TANK TIGHTNESS TESTING TO BE COMPLETED BY DEC 22 OF EACH YEAR WE ARE SEEING STRONG INDICATIONS THAT MANY OF OUR CUSTOMERS ARE DEFERRING TESTING TO PERIODS NEARER THE DEADLINE 9403170004 940317 LETTERS TO THE EDITOR THE ENTREPRENEUR'S BEST FRIEND YOUR FEB 8 EDITORIAL ON PRESIDENT CLINTON'S FISCAL 1995 BUDGET CONTAINED AN INAPPROPRIATE AND HIGHLY MISLEADING REFERENCE TO THE SMALL BUSINESS INVESTMENT COMPANY SBIC PROGRAM YOU USED A SINGLE ISOLATED INVESTMENT TO SMEAR ONE OF THE MOST EFFECTIVE PROGRAMS THE GOVERNMENT RUNS IN PARTNERSHIP WITH THE PRIVATE SECTOR THE FACT IS THAT THE SBIC PROGRAM HAS BEEN A WINNER FOR US TAXPAYERS AND SMALL GROWTH COMPANIES USING A COMBINATION OF PRIVATE AND GOVERNMENTGUARANTEED FUNDS SBICS HAVE MADE MORE THAN 10 BILLION OF VENTURE CAPITAL INVESTMENTS IN 90000 SMALL STARTUP COMPANIES CREATED HUNDREDS OF THOUSANDS OF NEW JOBS AND GENERATED BILLIONS IN NEW TAX REVENUES FOR FEDERAL AND STATE TREASURIES NEW TAXES PRODUCED BY JUST SEVERAL OUTSTANDING SBIC INVESTMENTS SUCH AS APPLE COMPUTER CRAY RESEARCH AND INTEL FAR EXCEED THE GOVERNMENT'S TOTAL EXPENDITURES FOR THE PROGRAM THE FACT IS THAT THE INCREASE IN MATCHING FUNDS FOR SBICS WILL GO PRIMARILY TO A TOTALLY REDESIGNED AND IMPROVED INVESTMENT PROGRAM THIS NEW PROGRAM WILL GIVE SMALLGROWTH FUNDS ACCESS TO BILLIONS OF PRIVATESECTOR DOLLARS WHILE CREATING A HIGHER RATE OF NEW JOBS AND INCREASED TAX REVENUES IN ADDITION THIS PROGRAM HAS THE UNIQUE FEATURE OF THE FEDERAL GOVERNMENT PARTICIPATING IN THE PROFITS EARNED BY SBICS YES THERE HAVE BEEN ISOLATED ABUSES BUT THE FACTS ARE THAT SBA UNCOVERED THE ABUSE IN THE ARKANSAS CASE AND TOOK LEGAL ACTION TO CLOSE DOWN THIS INVESTMENT COMPANY MONTHS BEFORE WHITEWATER EVER EMERGED AS A POLITICAL ISSUE YOUR USE OF THIS SINGLE CASE TO DENIGRATE THE WHOLE SBIC PROGRAM WAS NOT AN EXAMPLE OF OBJECTIVE REPORTING IF ANYONE WAS GUILTY OF HIEROGLYPHIC OBFUSCATION AND FAILURE TO DEAL WITH THE FACTS IT WAS YOU THE OBJECTIVES OF THE PRESIDENT'S INVESTMENT AGENDA ARE TO CREATE NEW JOBS AND REBUILD THE ECONOMY MOST OF THIS BURDEN WILL BE SHOULDERED BY AMERICA'S ENTREPRENEURS AND EMERGING SMALLGROWTH COMPANIES IN THIS CONTEXT IT SIMPLY MAKES GOOD BUSINESS SENSE FOR THE PRESIDENT TO INCREASE THE GOVERNMENT'S INVESTMENT IN THE SBIC PROGRAM 9403170002 940317 BUSINESS BRIEF DANAHER CORP BID FOR MARK CONTROLS IS SAID TO BEAT COMPETING OFFERS DANAHER CORP APPARENTLY OUTBID CRANE CO AND OTHER RIVALS TO ACQUIRE MARK CONTROLS CORP A MAKER OF INDUSTRIAL VALVES BASED IN SKOKIE ILL DANAHER SAID MARK'S BOARD HAD ENDORSED ITS TENDER OFFER OF 1775 A SHARE OR ABOUT 89 MILLION FOR ALL THE SHARES OUTSTANDING BUT MARK'S SHARES TRADED EVEN HIGHER FOR A TIME YESTERDAY AND CLOSED UP 2 AT 17875 IN NASDAQ STOCK MARKET TRADING THIS WEEK CRANE HAD SWEETENED ITS OFFER TO BUY MARK TO 1550 A SHARE OR ABOUT 78 MILLION CRANE HAD NO COMMENT YESTERDAY ON DANAHER'S BID DANAHER WHICH HAD 1993 REVENUE OF 11 BILLION SAID ITS OFFER IS CONDITIONED ON THE TENDER OF 80 OF MARK'S FULLY DILUTED SHARES AS PART OF ITS PROPOSED ACQUISITION DANAHER WILL ALSO ASSUME ABOUT 38 MILLION OF DEBT MARK HAD 1993 REVENUE OF 88 MILLION ON A PRO FORMA BASIS THE COMPANY'S REVENUE WOULD HAVE BEEN ABOUT 125 MILLION 9403170001 940317 BUSINESS BRIEF PACIFIC GAS & ELECTRIC CO CALIFORNIA ORDERS REFUND IN REVIEW OF GAS PURCHASES DETERMINING THAT PACIFIC GAS & ELECTRIC CO PAID TOO MUCH TO PURCHASE CANADIAN NATURAL GAS IN THE LATE 1980S CALIFORNIA'S PUBLIC UTILITIES COMMISSION ORDERED THE UTILITY TO REFUND 115 MILLION TO ITS CUSTOMERS THE DISPUTE INVOLVES A PG&E SUBSIDIARY'S GAS PURCHASES FROM CANADIAN PRODUCERS FROM 1988 TO 1990 UNDER FIXED LONGTERM CONTRACTS RATHER THAN ON THE SPOT MARKET WHERE PRICES GENERALLY WERE LOWER THE COMPANY CONTENDS THE ARRANGEMENT WAS NECESSARY TO ENSURE ADEQUATE SUPPLY ARGUING THAT IT STILL PAID LESS THAN THE PRICES CHARGED BY US PRODUCERS THE SAN FRANCISCOBASED UTILITY HAS STRONGLY OBJECTED TO ANY REFUNDS A SPOKESMAN SAID IT IS LEANING TOWARD SEEKING RECONSIDERATION OF YESTERDAY'S DECISION AN ADDITIONAL 160 MILLION IN GAS PURCHASES IN LATER YEARS IS UNDER REVIEW BY THE COMMISSION 9403170098 940223 LETTERS TO THE EDITOR ZALE BANKRUPTCY CASE CLIMBING OUT OF CHAOS BECAUSE YOU HAVE HAD SUCH BALANCED AND ACCURATE REPORTING OF THE ZALE BANKRUPTCY CASES I WAS SURPRISED THAT YOU PERMITTED MARK DICKSTEIN A PURCHASER AT SHARP DISCOUNTS OF CLAIMS AGAINST FINANCIALLY DISTRESSED ENTITIES TO EXTEMPORIZE AND MISCHARACTERIZE THE FACTS OF THAT CASE IN ORDER TO SUPPORT WHAT APPEARS TO BE A TACTICAL OBJECTIVE OF HIS AS A CREDITOR IN THE MACY'S CASE MACY'S DEBTOR PARADISE EDITORIAL PAGE JAN 19 AS ZALE'S LEAD BANKRUPTCY COUNSEL I WAS IN A GOOD POSITION TO OBSERVE NOT ONLY THE VALUE OF THE DEBTOR'S EXCLUSIVITY PERIOD WHICH WAS EXTENDED BY THE PRESIDING BANKRUPTCY JUDGE IN THAT CASE BUT ALSO THE COSTS AND COMPLICATIONS THAT CERTAIN CREDITORS CAN VISIT UPON A CHAPTER 11 REORGANIZATION AS LEVERAGE TO ATTEMPT TO SATISFY THEIR OWN GOALS THE ZALE CHAPTER 11 CASES WERE BEGUN INVOLUNTARILY AGAINST THE COMPANY ON JAN 1 1992 THEY WERE NOT PREARRANGED IN ANY SENSE THE US TRUSTEE APPOINTED FIVE CREDITOR COMMITTEES WHICH IMMEDIATELY UNDERTOOK A PATTERN OF LITIGATION AND BELLICOSITY ON EVERY CONCEIVABLE ISSUE RELATING TO THE OPERATION OF THIS BILLIONDOLLAR RETAILER WITH 10000 EMPLOYEES IT CERTAINLY WAS CHAOTIC NEVERTHELESS WITHIN FOUR MONTHS OF THE FILING OF THE INVOLUNTARY PETITIONS THE DEBTOR NOT THE CREDITOR COMMITTEES PROPOSED A SOLUTION TO THE CHAOS A FASTTRACK SCHEDULE FOR THE RESOLUTION OF THE CASE THIS INCLUDED SEQUENCED PRESENTATIONS OF CONTESTED ISSUES FORMULATION OF ECONOMIC PROPOSALS DEADLINES FOR THE PREPARATION OF PLANS OF REORGANIZATION AND PLENARY MEETINGS OF ALL CREDITOR CONSTITUENCIES WITH THE GOAL OF A POSSIBLE RESOLUTION OF THE CHAPTER 11 CASE BY SEPTEMBER 1992 EVERY CREDITOR CONSTITUENCY EXCEPT THE TRADE CREDITORS OPPOSED ZALE'S PROPOSAL AS UNREALISTIC FORTUNATELY THE BANKRUPTCY JUDGE EMBRACED IT INCLUDING THE CONTINUATION OF EXCLUSIVITY INDEED THE DEBTORS' EXCLUSIVITY PERIOD WAS EXTENDED BY THE BANKRUPTCY COURT UNTIL ZALE SUPPORTED EVENTUALLY BY SEVERAL CREDITOR CONSTITUENCIES GAVE ANTAGONISTIC GROUPS THE OPTION OF FILING COMPETING PLANS OF REORGANIZATION FOR SOME OR ALL OF THE ZALE COMPANIES IN CHAPTER 11 ULTIMATELY WITHIN THE TIME FRAME ORIGINALLY PROPOSED BY ZALE EVERY CREDITOR CONSTITUENCY EXCEPT MR DICKSTEIN'S WAS IN ACCORD FOR A CONSENSUAL PLAN MR DICKSTEIN WAS THE CHAIRPERSON OF THE ONE HOLDOUT CREDITORS COMMITTEE CONSTANTLY THREATENING MASSIVE LITIGATION OF ALL SORTS AGAINST ALL PARTIES THAT COMMITTEE EXTENDED THE LIFE OF THE CHAPTER 11 CASE BY MANY MONTHS AND COST THE ESTATE MILLIONS OF DOLLARS IN PROFESSIONAL FEES AND TENS OF MILLIONS IN AGGRAVATION PERHAPS THE SORT OF CHAOS THAT MR DICKSTEIN MEANT IN HIS ACKNOWLEDGMENT INDEED AN INVESTMENT BANKER WHO WAS ADVISING MR DICKSTEIN'S COMMITTEE DARED TO THREATEN REPRESENTATIVES OF ZALE AND THE CREDITORS THAT SUCH ADVISER WOULD GET WHAT HE WANTED OR BLOW UP THE DEBTOR THE PRESIDING BANKRUPTCY JUDGE COMMENTED ON THE RECORD THAT MR DICKSTEIN'S CONSTITUENTS WOULD BE INVITED TO CONSIDER THE ALTERNATIVES OF EITHER A CONSENSUS PLAN ON THE FORMAT ACHIEVED BY ZALE WITH THE OTHER CREDITOR CONSTITUENCIES OR YEARS OF LITIGATION WITH THE ATTENDANT UNCERTAINTIES AND COSTS YES THE ZALE CASE WAS RELATIVELY FAST HOWEVER I FAIL TO SEE HOW AN OPPONENT OF CASE RESOLUTION IN THE ZALE REORGANIZATION COULD POSSIBLY LECTURE THOSE INVOLVED IN OTHER CASES THE DEBTORS' EXCLUSIVITY PERIOD WAS A VERY HELPFUL PART OF CASE MANAGEMENT IN ZALE AND IT LASTED AS LONG AS IT WAS NECESSARY TO ASSIST IN THE REHABILITATION PROCESS WITHOUT THE EXCLUSIVITY PERIOD WE COULD NEVER HAVE CLIMBED OUT OF THE CHAOS AT THE START OF THE CASE OR HAVE ACHIEVED A CONSENSUAL PLAN SEE RELATED LETTER LETTERS TO THE EDITOR MY ULTERIOR' MOTIVE WANTING A FAIR DEAL WSJ MARCH 17 1994 9402230004 YY94 MM03 9403170083 940210 POLITICS & PEOPLE THE BALANCEDBUDGET HOAX BY ALBERT R HUNT CONGRESS VOTES DRASTIC REDUCTIONS IN ARMY AND MARINE FORCE LEVELS RAISES CORPORATE TAXES BY 50 BILLION SLICES SOCIAL SECURITY BENEFITS AND CUTS BILLIONS OF CRIME FIGHTING AND HIGHWAY FUNDS EARMARKED FOR TEXAS IT MAY SOUND LIKE POLITICAL SUICIDE BUT ALL WOULD BE DISTINCT POSSIBILITIES IF THE SENATE LATER THIS MONTH APPROVES A PROPOSED CONSTITUTIONAL AMENDMENT MANDATING A BALANCED BUDGET DESPITE DECLINING PUBLIC FERVOR FOR DEFICIT REDUCTION INSIDERS SAY THERE'S AN EVEN SHOT THE AMENDMENT WILL PASS CONGRESS EVERY LAWMAKER WHO VOTES FOR IT SHOULD HAVE TO ANSWER ONE SIMPLE QUESTION HOW WITH SPECIFICITY WOULD HE OR SHE BALANCE THE BUDGET BY THE END OF THE DECADE TO REACH A BALANCED BUDGET BY FISCAL 2000 AN ADDITIONAL 600 BILLION IN BUDGET CUTS OR TAX INCREASES MUST BE ENACTED OVER THE NEXT FIVE YEARS BY CONTRAST LAST YEAR CONGRESS BY THE GRAND MARGIN OF ONE VOTE REDUCED THE DEFICIT BY 433 BILLION A POLITICALLY REALISTIC ROAD MAP TO BALANCING THE BUDGET IN FIVE YEARS WOULD HAVE 25 COME FROM CUTTING DEFENSE SPENDING ANOTHER QUARTER FROM HIGHER REVENUES AND HALF FROM REDUCING SPENDING INCLUDING ENTITLEMENTS ON TAXES IF A FEW MORE EXCISE AND ENERGY LEVIES ARE ENACTED SOME LOOPHOLES ARE CLOSED AND THE RATES ON UPPERINCOME TAXPAYERS ARE BOOSTED A LITTLE MORE THAT STILL WOULD RAISE LESS THAN 100 BILLION OVER FIVE YEARS THUS THE MOST APPETIZING TARGET CORPORATE TAXES POLLS SHOW MOST AMERICANS STILL THINK CORPORATIONS DON'T PAY ENOUGH TAXES AND CORPORATE TAXES WOULD BE AN INEVITABLE TARGET ON THE DOMESTIC SPENDING SIDE ASSUME MEDICARE AND MEDICAID ARE WHACKED 100 BILLION OR ALMOST DOUBLE THE POLITICALLY AGONIZING CUTBACKS THAT CONGRESS VOTED LAST YEAR THEN START ELIMINATING ENTIRE PROGRAMS KILL OUTRIGHT EVERY HIGHWAY DEMONSTRATION PROJECT THE SPACE STATION AMTRAK SUBSIDIES AID TO PUBLIC BROADCASTING LEGAL SERVICES FUNDING FOR THE 100000 NEW COPS AND ALL FEDERAL SUPPORT FOR THE ARTS LIKEWISE DO AWAY WITH ENTIRE AGENCIES THE COMMERCE DEPARTMENT THE ARMY CORPS OF ENGINEERS THE GENERAL SERVICES ADMINISTRATION THE INTERSTATE COMMERCE COMMISSION AND THE SMALL BUSINESS ADMINISTRATION FOR GOOD MEASURE CUT CONGRESS'S BUDGET BY A THIRD AND ELIMINATE HALF OF THE FOREIGN AID TO THE TWO BIGGEST RECIPIENTS ISRAEL AND EGYPT ALTOGETHER INCLUDING HEALTH THOSE CUTBACKS STILL WOULD TOTAL LESS THAN 200 BILLION OVER FIVE YEARS TO GET THE 100 BILLIONPLUS MORE THERE'S ONLY ONE TARGET BIG ENOUGH SOCIAL SECURITY IF THESE BENEFIT INCREASES ARE LIMITED TO THE ANNUAL COST OF LIVING RISE MINUS 2 SOMETHING POLITICIANS INSIST IS POLITICALLY PERILOUS WE'RE STILL 20 BILLION SHORT OF THE GOAL THE DEFENSE BUDGET WOULD HAVE TO BE SLASHED AN ADDITIONAL 15 THE PENTAGON NOW IS FORMULATING WHAT THAT WOULD MEAN AND ONE TOP DEFENSE DEPARTMENT OFFICIAL LAID OUT THE LIKELY CONSEQUENCES THE PROJECTED 500000 ARMY FORCE LEVEL WOULD BE CUT TO 400000 MARINES WOULD DROP FROM A PROJECTED 174000 TO ABOUT 145000 AND THE RESERVES WOULD BE REDUCED BY A THIRD MOST MODERNIZATION EFFORTS WOULD BE ABANDONED AND THE 8 BILLION A YEAR THE PENTAGON ENVISIONS SPENDING ON THE NEW TECHNOLOGIES WOULD BE SCALED BACK TO 5 BILLION THE BOTTOM LINE THE STRATEGY OF THE JOINT CHIEFS OF STAFF AND PRESIDENT CLINTON THAT THE US BE PREPARED TO FIGHT IN TWO SIMULTANEOUS REGIONAL CONFLICTS WOULD HAVE TO BE SCRAPPED TO BATTLE THE MEASURE THE WHITE HOUSE HAS DEVISED A SERIES OF BUDGETBALANCING OPTIONS AND SPELLED OUT THE SPECIFIC POLICY IMPLICATIONS INCLUDING THE EFFECTS ON EACH STATE IN TEXAS FOR EXAMPLE IF THE REDUCTIONS CAME FROM AN ACROSSTHEBOARD SPENDING CUT BY 1999 THE AVERAGE SOCIAL SECURITY RECIPIENT WOULD GET 946 LESS A YEAR THE STATE WOULD LOSE 18 BILLION IN DEFENSE SPENDING AND ALMOST 4 BILLION IN REDUCED FEDERAL AID FOR DOMESTIC PROJECTS SCARE TACTICS PROPONENTS WILL SCREAM YEAH BUT IT MAKES THE POINT THAT THIS IS REAL STUFF THOSE WHO WANT TO AVOID HIGHER TAXES SHOULD SAY WHERE THEY'D FIND AN ADDED 150 BILLION IN SPENDING CUTS OR THOSE WHO WANT TO EXEMPT DEFENSE SHOULD SPECIFY SIMILAR SAVINGS IN MORE TAXES OR DOMESTIC OUTLAYS TO SIMPLIFY MATTERS ASK LAWMAKERS TO BALANCE ONE BUDGET FISCAL 2000 A GOOD BENCHMARK IS THE PROPOSAL BY THE CONCORD COALITION THE PAUL TSONGAS AND WARREN RUDMANLED EFFORT TO IMPOSE FISCAL DISCIPLINE THAT WOULD LEAD TO MORE THAN 200 BILLION OF DEFICIT REDUCTION THAT YEAR THEY WOULD CLOSE UNDERUSED VETERANS ADMINISTRATION HOSPITALS END AMTRAK SUBSIDIES ELIMINATE THE SPACE STATION REDUCE THE LEGISLATIVE BRANCH'S BUDGET BY 15 AND CUT FARM PAYMENTS AMONG OTHER CUTBACKS THAT'S LESS THAN 40 BILLION HOWEVER SO THEN THE CONCORD COALITION GETS PRETTY DRACONIAN MEANS TESTING ALL ENTITLEMENTS INCLUDING SOCIAL SECURITY RAISING THE RETIREMENT AGE TO 68 ENACTING A 50CENTAGALLON GASOLINE TAX SLAPPING ADDED TAXES ON BEER AND BOOZE AND SHARPLY CURTAILING THE HOME MORTGAGE DEDUCTION ASK THOSE BUDGETBALANCING POLITICIANS IF THEY SUPPORT THIS AGENDA SUPPLYSIDER JACK KEMP OPPOSES THE AMENDMENT BECAUSE HE THINKS IT'S A TRAP TO RAISE TAXES THE HEAD OF THE JOINT CHIEFS OF STAFF GEN JOHN SHALIKASHVILI OPPOSES IT OUT OF FEAR IT WOULD DECIMATE NATIONAL SECURITY AND ROBERT GREENSTEIN OF THE CENTER ON BUDGET AND POLICY PRIORITIES WORRIES IT WOULD UNDULY HURT POOR PEOPLE THEY ALL COULD BE RIGHT THERE'S LITTLE DOUBT THAT IN SEVERAL YEARS TOUGHER DEFICITREDUCTION MEASURES WILL BE NECESSARY INCLUDING CRACKING DOWN ON THE GROWTH OF ENTITLEMENT SPENDING AND GETTING MORE REVENUES HEALTH CARE LEGISLATION THE REPUBLICAN PROPOSALS AS WELL AS THE ADMINISTRATION'S ONLY ADDS TO THIS INEVITABILITY BUT THOSE ISSUES OUGHT TO BE DEBATED NOT HIDDEN UNDER THE CLOAK OF AN AMENDMENT THAT BALANCES THE BUDGET BUT DOESN'T TELL PEOPLE HOW IT WILL BE DONE TWO DECADES AGO A VETERAN HOUSE MEMBER JAMES BURKE EXPLAINED HOW HE STAYED IN CONGRESS BY VOTING FOR EVERY SPENDING BILL AND AGAINST EVERY TAX HIKE AND DEBTCEILING INCREASE WHEN A NAIVE YOUNG REPORTER SUGGESTED THAT THIS WAS A PRESCRIPTION FOR CHAOS JIMMY BURKE PUFFED ON HIS CIGAR SMILED AND SAID YOU THINK THIS PLACE IS ON THE LEVEL IN A COUPLE OF WEEKS THOSE VOTING TO AMEND THE CONSTITUTION WITH THIS SHAM WILL IN THE WORDS OF JIMMY BURKE SHOW THEY TOO KNOW THE PLACE ISN'T ON THE LEVEL ZERO DEFICIT PLAN SAVINGS WOULD INCLUDE SEE RELATED LETTER LETTERS TO THE EDITOR NOT BALANCING BUDGET IS SLOW FISCAL SUICIDE WSJ MARCH 17 1994 9402100113 YY94 MM03 9403170003 940208 REVIEW & OUTLOOK EDITORIAL SPEND LIKE AN EGYPTIAN SEARCHING FOR MEANING AMID THE 2013PAGE FOURVOLUME HIEROGLYPHIC TEXT THAT IS THE CLINTON FY 1995 BUDGET OUR EYES CAUGHT A SINGLE LINE ON PAGE 27 UNDER PROPOSED INVESTMENTS AT LAST WE HAD FOUND THE ROSETTA STONE THE LINE READS PAYMENT TO THE LEGAL SERVICES CORPORATION AND IT SHOWS SPENDING GOING UP FROM 357 MILLION IN 1993 TO 400 MILLION IN 1994 TO A 500 MILLION WINDFALL IN 1995 THAT'S A 25 INCREASE IN A SINGLE YEAR OR ABOUT EIGHT TIMES THE RATE OF INFLATION SO THIS IS WHAT PRESIDENT CLINTON MEANS BY INVESTING IN PEOPLE INCREASE THE SUBSIDY FOR LAWYERS WHO CAN THEN USE THE MONEY TO PAPER AMERICA WITH LAWSUITS SOMEHOW HE FORGOT TO MENTION THIS IN HIS STATE OF THE UNION ADDRESS WE OFFER THIS TRANSLATION GUIDE BECAUSE JUST LISTENING TO THE EGYPTIAN BUDGETESE YOU MIGHT CONCLUDE THIS IS A SKINFLINT DOCUMENT MR CLINTON EVEN SAYS HIS 1518300000000 BUDGET HAS FROZEN DISCRETIONARY SPENDING WHICH SOUNDS IMPRESSIVE BUT PARSING THE NUMBERS REVEALS A BAIT AND SWITCH SPENDING ON FAVORED CLINTON DISCRETIONARY ITEMS ACTUALLY GOES UP BY ABOUT 8 FROM 1993 TO 1995 AND EVEN MORE IN THE FUTURE THE RUSE IS TO CUT DEFENSE SPENDING TO THE BONE THEN TRANSFER THAT MONEY TO OTHER DOMESTIC ACCOUNTS SO FROM 1993 TO 1995 MR CLINTON WOULD CUT DEFENSE BY SOME 33 BILLION EVEN AS TOTAL DISCRETIONARY SPENDING STAYS LEVEL AND REMEMBER MR CLINTON'S FLOOR UNDER DEFENSE SPENDING IN THE STATE OF THE UNION MORE EGYPTIAN THIS IS TRUE ONLY IF YOU DON'T ACCOUNT FOR INFLATION AND IF YOU WAIT UNTIL AFTER 1997 BY 1997 US DEFENSE SPENDING WILL HAVE FALLEN TO 33 OF THE US ECONOMY LOWER THAN AT ANY TIME SINCE 1940 IF MR CLINTON WANTS TO BOMB SERBIA HE'D BETTER DO IT SOON WHILE THE US MILITARY CAN STILL AFFORD TO MR CLINTON'S SPENDING PRIORITIES ON THE OTHER HAND ARE CLEAR FROM THE EXCERPTS ON THE LIST NEARBY FOR EXAMPLE CONSIDER THE SBA'S INVESTMENT COMPANY GUARANTEES THIS MORE THAN DOUBLES IN 1995 TO 91 MILLION AS DO THE LOAN LEVELS TO 730 MILLION ARKANSOLOGISTS WILL RECALL THAT IT WAS JUST SUCH A 300000 SBIC LOAN THAT DAVID HALE MADE TO SUSAN MCDOUGAL THE PARTNER OF THE CLINTONS IN THEIR WHITEWATER VENTURE THEN THERE ARE LAST YEAR'S FAILED STIMULUS SPENDING ITEMS REPACKAGED AS INVESTMENTS THE HUD BUDGET WILL GET 149 MILLION FOR SOMETHING CALLED MOVING TO INDEPENDENCE WHICH WE ASSUME WILL MAKE BIG CITY MAYORS HAPPY THE SAME GOES FOR HOMELESS PROGRAMS UP 52 THESE ARE NEW DEMOCRAT INITIATIVES AND OF COURSE MR CLINTON'S MUCHBALLYHOOED SPENDING CAPS DON'T EVEN INCLUDE THE NEARLY 10 BILLION IN EMERGENCY SPENDING HE'S JUST PROPOSED FOR THE LOS ANGELES EARTHQUAKE NO OFFSETTING SPENDING CUTS FOR THAT THE BROADER MORE REALISTIC BUDGET STORY IS TOLD BY THE TOP HALF OF THE CHART NEARBY SEE ACCOMPANYING ILLUSTRATION WSJ FEB 8 1993 MOST OF MR CLINTON'S HYPOTHETICAL DEFICIT REDUCTION IS THE RESULT OF FASTER ECONOMIC GROWTH AND HIGHER TAX RATES PROJECTED TO RAISE THE FEDERAL GOVERNMENT'S REVENUE SHARE OF GDP TO 193 IN 1995 THIS TREND IS TAKING US BACK TO CARTERERA TAX LEVELS IF YOU BELIEVE THAT THE CLINTON TAXES WILL YIELD THE REVENUE THEY CLAIM SPENDING MEANWHILE WILL FALL TO 216 OF GDP IF YOU ALSO CHOOSE TO BELIEVE THE DECLINE HERE IS MAINLY A RESULT OF LOWER INTEREST PAYMENTS A WINDFALL FROM THE RESALE OF S&L ASSETS ACQUIRED BY THE FEDS IN THE LATE 1980S DEFENSE CUTS AND REDUCED JOBLESS BENEFITS BECAUSE OF THE BETTER ECONOMY BUT IF THE CLINTON BUDGET PASSES THROUGH 1999 NONDEFENSE SPENDING THE KIND THAT DEMOCRATIC CONSTITUENCIES LIKE WILL GROW AT A RATE OF 7 A YEAR THIS IS WHY EVEN BY MR CLINTON'S OWN CALCULATIONS THE DEFICIT WILL GROW AGAIN AFTER 1998 IT'S ALSO WHY SEE THE BOTTOM HALF OF THE CHART THE NATIONAL DEBT LEVELS OFF AS A SHARE OF GDP BUT DOESN'T DECLINE MR CLINTON'S ANSWER TO THIS IS HEALTH CARE REFORM WHICH IS SUPPOSED TO ACCOMPLISH THE MIRACLE OF SIMULTANEOUSLY INSURING 37 MILLION MORE AMERICANS ADDING FREE DRUG AND MENTALHEALTH BENEFITS AND REDUCING THE DEFICIT ANYONE OTHER THAN IRA MAGAZINER WHO BELIEVES THAT NEEDS A PROZAC AND A LONG REST ALL OF WHICH HELPS TO EXPLAIN WHY MR CLINTON LOBBIED SO MIGHTILY LAST NOVEMBER TO KILL THE PENNYKASICH SPENDING CUTS MR CLINTON WANTS TO SPEND MORE NOT LESS STRIPPED OF ITS HIEROGLYPHIC OBFUSCATION THE CLINTON BUDGET'S PRIORITIES ARE THESE TAX AND SPEND SEE RELATED LETTER LETTERS TO THE EDITOR STRICTLY SPEAKING WSJ FEB 22 1994 SEE RELATED LETTER LETTERS TO THE EDITOR THE ENTREPRENEUR'S BEST FRIEND WSJ MARCH 17 1994 9402080085 9402220144 YY94 MM02 YY94 MM03 9403170091 940119 MACY'S DEBTOR PARADISE BY MARK DICKSTEIN THE RECENT PURCHASE OF ALMOST 450 MILLION OF RH MACY & CO'S DEBT BY RIVAL FEDERATED DEPARTMENT STORES HAS SET OFF SPECULATION ABOUT A MERGER WHEN MACY'S EMERGES FROM BANKRUPTCY MACY'S CHAIRMAN MYRON ULLMAN HAS ALREADY SAID THAT HE IS NOT INTERESTED IN A MERGER WITH FEDERATED OR PRESUMABLY WITH ANYONE ELSE IN THE MEANTIME AFTER TWO YEARS OF BANKRUPTCY MACY'S HAS YET TO PROPOSE ANY PLAN FOR REORGANIZATION THIS SITUATION BRINGS TO THE FOREFRONT THE BIGGEST FLAW IN OUR BANKRUPTCY SYSTEM MANY COURTS ARE ALL TOO WILLING TO GIVE THE BANKRUPT COMPANY THE ABILITY TO MONOPOLIZE THE RIGHT TO PROPOSE A PLAN OF REORGANIZATION SO LONG AS THE COMPANY HAS THIS MONOPOLY NO ONE EXCEPT THE DEBTOR NO CREDITOR SHAREHOLDER OR ANYONE ELSE CAN PROPOSE A PLAN AND GET THE COMPANY OUT OF CHAPTER 11 ALTHOUGH THE BANKRUPTCY CODE GIVES THE COMPANY THIS REORGANIZATION MONOPOLY FOR ONLY 120 DAYS THE BANKRUPTCY COURT HAS THE ABILITY TO EXTEND THIS EXCLUSIVE PERIOD OR EXCLUSIVITY INDEFINITELY SUCH EXTENSIONS HAVE BEEN ROUTINELY GRANTED TO MACY'S PERPETUAL EXTENSIONS OF EXCLUSIVITY MAKE SENSE PRIMARILY IN THOSE HIGHLY UNUSUAL SITUATIONS WHERE THE DEBTOR IS ENMESHED IN LITIGATION THAT REQUIRES RESOLUTION BEFORE THE DEBTOR CAN BEGIN TO REORGANIZE ITS AFFAIRS IN RECENT YEARS TWO COMPANIES INVOLVED IN THIS TYPE OF CASE WERE MANVILLE CORP WHICH FACED BILLIONS OF DOLLARS IN JUDGMENTS FROM PARTIES HARMED BY ASBESTOS AND LTV WHICH FACED A MULTIBILLIONDOLLAR PENSION BENEFIT GUARANTY CORP CLAIM IN BOTH MANVILLE AND LTV MOST OBSERVERS RECOGNIZED THAT NO PLAN OF REORGANIZATION COULD BE CONFIRMED WITHOUT THE SUPPORT OF THE LITIGANTS SO PERPETUAL EXTENSIONS OF EXCLUSIVITY MADE SENSE BY FAR THE MORE COMMON OCCURRENCE IS A SITUATION LIKE MACY'S MACY'S IS TYPICAL OF MOST RECENT BANKRUPTCIES IN THAT ALTHOUGH IT MAY HAVE BEEN UNDERPERFORMING ITS COMPETITORS THE PRIMARY CAUSE OF ITS FILING FOR BANKRUPTCY WAS THAT IT SIMPLY HAD TOO MUCH DEBT RELATIVE TO ITS ABILITY TO SERVICE ITS DEBT THE ARGUMENT MADE BY THIS KIND OF DEBTOR FOR EXTENSIONS OF EXCLUSIVITY IS FAMILIAR DUE TO THE COMPLEXITY OF ITS CASE THE NEED TO COMPLETE AN OPERATIONAL TURNAROUND BEFORE EMERGING FROM BANKRUPTCY AND THE CHAOS THAT WOULD RESULT FROM LETTING ANYONE FILE A PLAN IT IS SUPPOSEDLY IN THE BEST INTERESTS OF THE ESTATE TO LET THE DEBTOR MONOPOLIZE THE REORGANIZATION PROCESS MACY'S HAS THUS PURSUED THE TYPICAL DEBTOR STRATEGY OF PRESERVING EXCLUSIVITY AS LONG AS POSSIBLE BUT IT HAS ALSO SHOWN NO URGENT DESIRE TO EXIT BANKRUPTCY AND THAT IS UNUSUAL IN FAILING TO COME FORTH WITH A PLAN MACY'S MUST HAVE BELIEVED THAT IT COULD NOT OPERATE OUT OF BANKRUPTCY IN 1993 OR 1994 EVEN IF ALL ITS PREBANKRUPTCY DEBTS WERE CONVERTED TO EQUITY IT IS ILLUSTRATIVE TO COMPARE THE MACY BANKRUPTCY TO THE RECENT BANKRUPTCY OF ZALE CORP THE NATION'S LARGEST JEWELRY RETAILER THE ZALE BANKRUPTCY INVOLVED AS COMPLEX A SET OF LEGAL AND VALUATION ISSUES AS HAVE BEEN FACED IN ANY OTHER MAJOR BANKRUPTCY IN RECENT YEARS IN ADDITION ZALE HAD NO CHIEF EXECUTIVE AND FACED VIRTUALLY A COMPLETE OPERATIONAL MAKEOVER NOTWITHSTANDING THESE FACTS THE ZALE BANKRUPTCY COURT SET UP A RIGOROUS TIMETABLE WITH THE AIM OF SEEING THAT THE BANKRUPTCY LASTED LESS THAN 18 MONTHS IN ADDITION THE ZALE BANKRUPTCY COURT IGNORED THE DEBTOR'S DESIRE TO KEEP EXCLUSIVITY IN FACT THE COURT MADE REFERENCE TO THE UNEVEN PLAYING FIELD THAT WOULD RESULT IF ONLY THE COMPANY ITSELF COULD CONTINUE TO FILE A REORGANIZATION PLAN ZALE'S BANKRUPTCY COUNSEL WEIL GOTSHAL & MANGES WHICH IS ALSO MACY'S COUNSEL MADE THE PREDICTABLE ARGUMENT THAT CHAOS WOULD ENSUE IF ANY INTERESTED PARTY COULD FILE A PLAN FOR ZALE WELL CHAOS OF A SORT DID IN FACT ENSUE BUT IT LED TO ZALE CONFIRMING A PLAN OF REORGANIZATION WITHIN 18 MONTHS OF ENTERING BANKRUPTCY ONE REASON THE MACY BANKRUPTCY HAS NOT BEEN HANDLED THIS WAY IS THAT IT IS BEING HEARD IN THE SOUTHERN DISTRICT OF NEW YORK A LOCATION THAT HAS SOMETIMES BEEN REFERRED TO AS DEBTOR'S PARADISE THE COURTS THERE ALWAYS SEEM TO PRESUME THAT THE DEBTOR IS INNOCENT UNTIL PROVEN GUILTY AN ADMIRABLE STANDARD IN CRIMINAL LAW BUT NOT IN BANKRUPTCY MATTERS THE SOUTHERN DISTRICT'S COURTS SEEM TO AGREE WITH VIRTUALLY EVERY ARGUMENT A DEBTOR MAKES SO LONG AS IT SOUNDS REASONABLE SOME OBSERVERS BELIEVE THAT IF MACY'S HAD PROMPTLY COME UP WITH A REORGANIZATION PLAN THAT AMONG OTHER THINGS CONVERTED ALL ITS PREBANKRUPTCY DEBT TO EQUITY IT MIGHT HAVE OBTAINED POSTBANKRUPTCY FINANCING THAT WOULD HAVE ENABLED IT TO EMERGE FROM BANKRUPTCY IN JANUARY 1993 EVEN IF THAT DATE WAS OVERLY OPTIMISTIC JANUARY 1994 WAS CERTAINLY POSSIBLE BUT FOR REASONS THAT ARE DIFFICULT TO COMPREHEND MACY'S HAS DELAYED THERE IS NO NEED FOR AN OPERATIONAL MAKEOVER TO OCCUR ONLY WHILE A COMPANY IS IN CHAPTER 11 AND IF AN EQUITY INFUSION WAS NEEDED TO HELP MACY'S MAKE AN EARLY EXIT FROM CHAPTER 11 IT APPEARS THAT FIDELITY INVESTMENTS AND PERHAPS OTHERS WOULD HAVE BEEN WILLING TO BUY UP DEBT IN EXCHANGE FOR EQUITY IN 1993 THE MILWAUKEEBASED PA BERGNER DEPARTMENT STORE CHAIN EMERGED FROM BANKRUPTCY THANKS IN PART TO AN EQUITY INFUSION FROM A GROUP OF DEBTHOLDERS FOLLOWING A REORGANIZATION PLAN IT WOULD NOT HAVE BEEN UNREASONABLE TO EXPECT A SIMILAR SOLUTION IN THE CASE OF MACY'S INSTEAD FOR THE PAST TWO YEARS MACY'S HAS FAILED TO COME UP WITH ANY PLAN OF REORGANIZATION AND IT HAS PETITIONED THE COURT TO PREVENT ANY OTHER INTERESTED PARTY FROM FILING ONE OF ITS OWN TO DATE THE COURT HAS ACQUIESCED NOW MACY'S IS REAPING THE BITTER HARVEST IT HAS SOWN WHEN MAJOR CREDITORS SUCH AS PRUDENTIAL AND FIDELITY SEE MACY'S MAKING NO PROGRESS TOWARD EXITING BANKRUPTCY AND WHEN THE COURT DENIES THESE CREDITORS THE RIGHT TO FILE THEIR OWN PLANS OF REORGANIZATION IT SHOULD COME AS NO SURPRISE THAT THEY BEGIN TO LOOK TO MACY'S COMPETITORS TO HELP SPEED UP THE PROCESS CONGRESS HAS NOT TOTALLY IGNORED WHAT IS HAPPENING IN DEBTOR'S PARADISE THE PROPOSED BANKRUPTCY REFORM BILL NOW IN CONGRESS WOULD DIRECT THE COURTS NOT TO EXTEND EXCLUSIVITY BEYOND A YEAR UNLESS THE NEED FOR AN EXTENSION IS ATTRIBUTABLE TO CIRCUMSTANCES FOR WHICH THE DEBTOR SHOULD NOT JUSTLY BE HELD ACCOUNTABLE THEORETICALLY THAT PROVISION WOULD HELP BUT MANY OBSERVERS FEAR THAT GIVEN THE PRODEBTOR BIAS OF MANY BANKRUPTCY COURTS FINDING THE CIRCUMSTANCES TO JUSTIFY AN EXTENSION OF EXCLUSIVITY WILL BECOME ROUTINE DURING AN EXCLUSIVITY HEARING IN THE ZALE BANKRUPTCY ONE ATTORNEY MADE THE FOLLOWING STATEMENT WITH APOLOGIES TO SPIKE LEE MO' PLANS MO' BETTER IN THE ZALE BANKRUPTCY AT LEAST THE COURT AGREED WITH GOOD RESULTS IN THE CASE OF MACY'S HOWEVER AN END TO EXCLUSIVITY IS NOWHERE IN SIGHT MR DICKSTEIN WAS A PARTICIPANT IN THE ZALE BANKRUPTCY AND IS CHAIRMAN OF CARSON PIRIE SCOTT THE SUCCESSOR CORPORATION TO PA BERGNER SEE RELATED ARTICLE AND AN ALTERNATIVE TO CHAPTER 11 WSJ JAN 19 1994 SEE RELATED LETTER LETTERS TO THE EDITOR ZALE BANKRUPTCY CASE CLIMBING OUT OF CHAOS WSJ FEB 23 1994 SEE RELATED LETTER LETTERS TO THE EDITOR MY ULTERIOR MOTIVE WANTING A FAIR DEAL WSJ MARCH 17 1994 9401190059 9402230083 YY94 MM02 YY94 MM03 9403160177 940316 ADVERTISING YEAR'S TOP COMMERCIALS PROPELLED BY STAR POWER BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL COMEDY IS NO LONGER KING ON MADISON AVENUE LARRY BIRD MICHAEL JORDAN AND WILLIE NELSON ARE WHILE HUMOR WAS AN INGREDIENT IN SOME OF 1993'S TOP ADS IT TOOK A BACKSEAT TO THE CELEBRITIES STARRING IN THEM ACCORDING TO VIDEO STORYBOARD TESTS' CLOSELY WATCHED 16TH ANNUAL RANKING OF THE MOST POPULAR TELEVISION COMMERCIALS THE NEW YORK COMPANY WHICH CONDUCTS PRINT AND BROADCAST ADVERTISING RESEARCH SURVEYED 21000 INDIVIDUALS THROUGHOUT LAST YEAR TACO BELL'S NO 7 CAMPAIGN FEATURES SINGER WILLIE NELSON AND FLYING RODENT ROCKET J SQUIRREL AND PRO BASKETBALL LEGENDS STAR IN THREE OF THE FOUR TOP COMMERCIALS AN AD FOR MCDONALD'S WITH RETIRED VETERANS LARRY BIRD AND MICHAEL JORDAN BOUNCED TO THE NO 1 POSITION THE COMPANY HELD THE NO 5 SPOT IN LAST YEAR'S SURVEY PEPSICO'S PEPSI SOFT DRINK FOLLOWED AT NO 2 PRIMARILY ON THE STRENGTH OF AN AD THAT STARS SHAQUILLE O'NEAL OF THE ORLANDO MAGIC NIKE AT NO 4 HAD COMMERCIALS STARRING CHARLES BARKLEY AND MR JORDAN ADVERTISING IS BECOMING MORE SHOW BIZ THAN MARKETING BIZ SAYS DAVID VADEHRA VIDEO STORYBOARD'S PRESIDENT HUMOR USED TO STAND OUT BUT THAT ISN'T THE CASE AMONG THE MORE POPULAR COMMERCIALS THE CAMPAIGNS THAT RELY MOST HEAVILY ON TICKLING THE FUNNY BONE ARE SLIPPING THE MOST THE MOST POPULAR TELEVISION CAMPAIGN IN 1992 LITTLE CAESARS PIZZA FELL TO FIFTH PLACE LAST YEAR THE QUIRKY ADS FEATURE THE SLOGAN PIZZA PIZZA AND SUCH SITUATIONS AS TWO DOGS IN A THERAPY SESSION IF YOU RELY ON BEING FUNNY SAYS MR VADEHRA THEN THE RANKING DEPENDS ON HOW GOOD YOUR LATEST JOKE IS AND MR VADEHRA ISN'T OPTIMISTIC ABOUT THE POPULARITY OF LITTLE CAESAR'S MOST RECENT ADS FEATURING A CHICKEN WITH EYES BULGING SPLATTERING ON A WINDSHIELD OF A CAR DRIVEN BY THE PIZZA CHAIN'S FOUNDER AND CHAIRMAN MICHAEL ILITCH ANOTHER COMIC CAMPAIGN FALLING ON HARD TIMES IS EVEREADY ENERGIZER BATTERY COMMERCIALS THAT STAR THE OMNIPRESENT BUNNY THE ADS FOR THE RALSTON PURINA UNIT CONTINUE TO LOSE STEAM DROPPING TO NO 13 FROM SIXTH PLACE IN 1992 AND SECOND IN 1991 ANIMOSITY TOWARD THE DRUMBEATING PINK ICON IS MULTIPLYING LIKE WELL RABBITS ONE VIEWER QUOTED IN VIDEO STORYBOARD'S REPORT SAID THE ADS FROM CHIAT/DAY MAKE ME WANT TO KILL THE BUNNY DUPONT'S HUMOROUS STAINMASTER ADS ALSO ARE LOSING FAVOR THE CAMPAIGN INCLUDING AN AD FROM OMNICOM GROUP'S BBDO SHOWING A TODDLER RACING AROUND A HOUSE IN AN INFANT WALKER AND CREATING HAVOC FELL TO NO 9 FROM NO 4 VIDEO STORYBOARD'S SURVEY SHOWED THAT COCACOLA'S GAMBLE IN HIRING CREATIVE ARTISTS AGENCY A HOLLYWOOD TALENT AGENCY WITH NO ADVERTISING EXPERIENCE PAID OFF HANDSOMELY THE SOFT DRINK HAD DROPPED TO NO 9 IN THE 1992 SURVEY WITH LAST YEAR'S ADS COKE BOUNCED BACK TO NO 3 ITS BEST RANKING SINCE 1986 WHEN THE BEVERAGE MAKER'S SPOKESMAN WAS THE COMPUTERGENERATED CHARACTER MAX HEADROOM IN 1993 TV VIEWERS CITED COKE'S POLAR BEAR AS WELL AS THE BOUNCY JINGLE THE ONE CAMPAIGN THAT CATAPULTED TO THE TOP 10 FROM NOWHERE IS TACO BELL FROM FOOTE CONE & BELDING'S SAN FRANCISCO OFFICE AN AD STARRING THE CROONING MR NELSON PLUCKING A GUITAR RECEIVED PARTICULARLY HIGH MARKS IT WAS A BREAK SAYS MR VADEHRA FROM THE JARRING INYOURFACE ROCKANDROLLORIENTED COMMERCIALS THAT ARE IN VOGUE MOST OF THE COMMERCIALS ON THE VIDEO STORYBOARD LIST ENTERTAIN MORE THAN INFORM CONSUMERS ABOUT THE PRODUCT IN FACT ONLY ONE CAMPAIGN IN THE TOP 10 FOR LEXUS AUTOMOBILES PROMOTES THE PRODUCT'S FEATURES TO ANY DEGREE LEXUS'S NONONSENSE APPROACH WAS TAKEN BECAUSE UNTIL THE CAR MADE BY A TOYOTA UNIT WAS INTRODUCED IN THE LATE 1980S JAPANESE LUXURY CAR WAS AN OXYMORON SAYS TOM CORDNER TEAM ONE'S COCHAIRMAN AND CREATIVE DIRECTOR WE HAD TO PROVE LEXUS IS AS GOOD AS OTHER LUXURY CARS SLOWLY DEMONSTRATION BY DEMONSTRATION OTHER THAN LEXUS ONLY FORD MOTOR RANKED AMONG THE TOP 25 CAMPAIGNS AT NO 12 IT IS FORD'S FIRST APPEARANCE SINCE 1989 WHEN IT WAS NO 25 BEER ADVERTISING HAS LOST MUCH OF ITS KICK MILLER BREWING'S MILLER LITE WHICH HAD THE MOST POPULAR AD CAMPAIGN DURING MUCH OF THE 1980S DROPPED TO NO 19 LAST YEAR FROM NO 17 ONLY BUDWEISER MADE BY ANHEUSERBUSCH MADE THE TOP 10 BEER ADS SAYS MR VADEHRA LOOK SO MUCH ALIKE THE CAMPAIGNS MELD INTO ONE GIANT BEACH PARTY OF WISECRACKING YUPPIES GAINING IN POPULARITY IS NESTLE'S TASTER'S CHOICE SOAP OPERA HOW DOES SHE EXPLAIN HER GROWN SON TO HER NEXTDOOR NEIGHBOR/LOVER/FELLOW COFFEE DRINKER IT IS NO 8 CLIMBING TWO NOTCHES FROM 1992 THAT COULD ONLY MEAN MORE IN THE NEVERENDING COURTSHIP OF TONY AND SHARON MR VADEHRA FOR ONE CONGRATULATES TASTER'S CHOICE AND ITS AD AGENCY INTERPUBLIC GROUP'S MCCANNERICKSON IT IS DIFFICULT TO CONDUCT SERIAL COMMERCIALS SAYS MR VADEHRA A SERIAL CAMPAIGN APPEARS TO BE WHAT MCDONALD'S AND ITS AD AGENCY LEO BURNETT ARE ATTEMPTING THE COMMERCIAL THAT LANDED THE FASTFOOD CHAIN IN THE TOP SPOT WAS SHOWDOWN A MOCK BASKETBALL CONTEST INVOLVING MR BIRD OF THE BOSTON CELTICS AND MR JORDAN LATE OF THE CHICAGO BULLS THE TWO TRY TO OUTDO ONE ANOTHER WITH SEEMINGLY IMPOSSIBLE NOTHING BUT NET SHOTS INCLUDING ONE FROM CHICAGO'S HANCOCK SKYSCRAPER TO A BASKETBALL HOOP BLOCKS AWAY THE WINNER GETS TO MUNCH A BIG MAC CUSTOMERS CAN RELATE TO TRYING TO MAKE THE ULTIMATE BASKETBALL SHOT SAYS TONY WEISMAN VICE PRESIDENT AND ACCOUNT DIRECTOR AT BURNETT BUT A MORE RECENT MCDONALD'S AD WHERE THE TWO ARE JOINED BY PHOENIX SUNS STAR CHARLES BARKLEY IS PERHAPS A BIT TOO FANTASTIC THE AD ENDS WITH THE TRIO IN SPACE WITH MESSRS BIRD AND JORDAN SHOOTING BASKETS IT UNDERSCORES THE MADISON AVENUE DILEMMA OF TOPPING A CREATIVE COUP SURE THERE'S A RISK OF WEARING OUT A CAMPAIGN SAYS MR WEISMAN YOU DON'T WANT IT TO RUN FOREVER MR VADEHRA SAYS THERE IS LITTLE RISK OF NOT FOCUSING ON A PRODUCT SUCH AS THE BIG MAC WHEN USING CELEBRITIES AFTER ALL WHAT COULD BE SAID ABOUT THE PRODUCT THAT HASN'T BEEN SAID MANY TIMES BEFORE WHEN YOU HAVE NOTHING TO SAY ABOUT THE PRODUCT MR VADEHRA ADVISES BUILD A STORY USING A CELEBRITY SAATCHI & SAATCHI CO REPORTED 1993 PROFIT OF 73 MILLION 109 MILLION OR 37 PENCE PER ORDINARY SHARE THE FIRST TIME IN FIVE YEARS THE ADVERTISING AGENCY HOLDING COMPANY HAS BEEN PROFITABLE IN 1992 SAATCHI & SAATCHI HAD A LOSS OF 6137 MILLION OR 3628 PENCE PER SHARE INCLUDING A 600 MILLION WRITEOFF OF GOODWILL THE COMPANY SAID THAT FOR THE THIRD CONSECUTIVE YEAR IT WOULDN'T PAY A DIVIDEND THIS YEAR SAATCHI SHARES TRADE IN THE US AS AMERICAN DEPOSITARY RECEIPTS ONE ADR EQUALS THREE SAATCHI SHARES SAATCHI SAID REVENUE INCREASED 9 TO 8134 MILLION FROM 748 MILLION BUT THE COMPANY SAID THAT EXCLUDING EXCEPTIONAL ITEMS AND THE IMPACT OF FAVORABLE CURRENCY RATES REVENUE WAS FLAT SAATCHI ATTRIBUTED THE TURNAROUND MAINLY TO LOWER GOODWILL AND OTHER CHARGES RELATED TO DISCONTINUED OPERATIONS AND LOWER INTEREST AND TAX PAYMENTS SAATCHI'S US PROFIT WAS UP 30 INCLUDING THE EFFECTS OF FAVORABLE CURRENCY RATES TO 211 MILLION ITS UK OPERATION REPORTED A 95 MILLION PROFIT IT HAD A LOSS IN 1992 PROFIT IN THE REST OF EUROPE FELL 89 TO 2 MILLION AVERAGE NET DEBT WAS 112 MILLION IN DECEMBER SAATCHI SAID A REDUCTION OF 82 MILLION SEVERANCE COSTS WERE HIGHER THAN EXPECTED AT 191 MILLION IN 1993 THE COMPANY SAID COMPARED WITH 10 MILLION IN 1992 SAATCHI REITERATED THAT THE REVENUE OUTLOOK FOR 1994 REMAINS DIFFICULT CITING THE LOSS OF MORE THAN 200 MILLION IN BILLINGS SINCE OCTOBER FROM TWO MAJOR ACCOUNTS HELENE CURTIS AND CHRYSLER'S JEEPEAGLE COCACOLA CO AND ITS PARTNER IN ICEDTEA MARKETING NESTLE SA ARE TRIPLING AD SPENDING FOR NESTEA READYTODRINK ICED TEA TO 30 MILLION THIS YEAR COCACOLA NESTLE REFRESHMENTS PLANS TO TARGET CONSUMERS AGED 18 TO 29 WITH AN AD CAMPAIGN FROM MCCANNERICKSON AND A SPONSORSHIP OF THE ASSOCIATION OF VOLLEYBALL PROFESSIONALS' 1994 PRO BEACH VOLLEYBALL TOUR KARCH KIRALY A TWOTIME OLYMPIC INDOOR VOLLEYBALL GOLD MEDALIST WILL APPEAR IN SOME ADS NESTEA ALSO PLANS TO DISTRIBUTE SIX MILLION CANS OF ICED TEA BY SEPTEMBER THROUGH A FLEET OF TRACTORTRAILERS STOPPING IN 60 CITIES MEANWHILE PEPSICO'S PEPSICOLA CO SAID IT HAS SIGNED A FIVEYEAR AGREEMENT WITH AN ASSOCIATION OF HEALTH AND SPORTS CLUBS THE ASSOCIATION OF QUALITY CLUBS AND PEPSI WILL TEAM UP FOR AN ANNUAL NATIONAL PROMOTION FEATURING PEPSI'S CARBONATED DRINKS AND TEAS AND JUICES FROM PEPSI'S PARTNERSHIPS WITH LIPTON AND OCEAN SPRAY SKATING DEAL ABC SPORTS AND THE US FIGURE SKATING ASSOCIATION HAVE AGREED TO EXTEND THE NETWORK'S BROADCAST RIGHTS TO ASSOCIATION SKATING EVENTS BESIDES SELLING AD TIME DURING NETWORK BROADCASTS OF SKATING EVENTS THE NETWORK A UNIT OF CAPITAL CITIES/ABC ALSO WILL MARKET ASSOCIATION SPONSORSHIP AND LICENSING PACKAGES THE MULTIYEAR AGREEMENT EXTENDS BEYOND THE 1998 WINTER OLYMPICS SAID ABC SPORTS VICE PRESIDENT LYDIA STEPHANS 9403160176 940316 WHO'S NEWS COMSTOCK RESOURCES INC COMSTOCK RESOURCES INC DALLAS JAMES L MENKE FORMERLY MANAGER OF ENGINEERING FOR ATROPOS EXPLORATION CO WAS NAMED VICE PRESIDENT OF OPERATIONS OF THIS ENERGY COMPANY MR MENKE 43 YEARS OLD SUCCEEDS RICHARD K MYERS 36 WHO BECOMES VICE PRESIDENT OF EXPLORATION AND ACQUISITIONS 9403160175 940316 MUTUAL FUNDS FOREIGNSTOCK FUNDS STUMBLE BY AVOIDING JAPANESE MARKET BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOREIGNSTOCK MUTUAL FUNDS ARE SUFFERING FROM JET LAG AFTER FIVE MARKETBEATING YEARS STOCK FUNDS THAT INVEST OUTSIDE THE US ARE UP LESS THAN 2 FOR 1994 THROUGH LAST THURSDAY COMPARED WITH A GAIN OF NEARLY 7 FOR MORGAN STANLEY'S WIDELY WATCHED BENCHMARK THE EUROPE AUSTRALIA AND FAR EAST INDEX WHAT'S GOING WRONG MUTUAL FUNDS HAVE LONG STEERED CLEAR OF JAPAN WHILE BETTING BIG ON SMALLER ASIAN MARKETS SUCH AS HONG KONG AND SINGAPORE THAT STRATEGY WORKED WELL IN THE PAST BUT HAS BOMBED THIS YEAR SMALLER ASIAN MARKETS HAVE GONE INTO A SWOON IN 1994 WHILE JAPAN HAS TURNED IN A FINE PERFORMANCE FOR US INVESTORS THANKS TO A STRONG YEN AND GENERALLY BUOYANT STOCK PRICES IF JAPAN CONTINUES TO OUTPERFORM THE REST OF ASIA THE ACTIVE MANAGERS WILL TRAIL THE INDEX FOR A LONG TIME SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER THERE'S A TREMENDOUS AMOUNT OF SKEPTICISM ABOUT JAPAN AND I DON'T THINK IT WILL GO AWAY QUICKLY SO WHAT SHOULD AN INVESTOR DO ANALYSTS SUGGEST BOOSTING YOUR JAPANESE EXPOSURE EITHER BY BUYING FUNDS WITH HEFTY JAPANESE HOLDINGS OR BY PURCHASING THE STOCKS OF JAPANESE COMPANIES THAT TRADE IN THE US THE RECENT LACKLUSTER FOREIGNFUND RETURNS MAY BE A SHOCK TO US MUTUALFUND INVESTORS WHO HAVE GROWN ACCUSTOMED TO SEEING THEIR FUNDS RUN RINGS AROUND THE FOREIGNSTOCK MARKETS ON AVERAGE FOREIGNSTOCK FUNDS RETURNED A CUMULATIVE 625 IN THE FIVE YEARS THROUGH 1993 FAR AHEAD OF THE 105 GAIN FOR MORGAN STANLEY'S EAFE INDEX OF THE 43 FUNDS AROUND FOR THE ENTIRE PERIOD ALL BUT ONE BEAT THE EAFE INDEX ACCORDING TO FUND RESEARCHER LIPPER ANALYTICAL SERVICES BEATING THE INDEX WON'T BE SO EASY IN THE FUTURE SOME MANAGERS RECKON THERE ARE PERIODS WHEN THESE THINGS LOOK LIKE A PUSHOVER SAYS NICHOLAS CARN MANAGER OF THE TNE INTERNATIONAL EQUITY FUND BUT THEY ALWAYS COME BACK TO BITE YOU MR CARN NOTES THAT FUNDS COULD HAVE BEATEN THE INDEX'S FIVEYEAR GAIN SIMPLY BY AVOIDING JAPAN WHICH FELL 302 IN THE PERIOD MOREOVER HE SAYS FUNDS HAVE BENEFITED FROM BIG HOLDINGS IN HOT ASIAN MARKETS SUCH AS MALAYSIA SINGAPORE AND ESPECIALLY HONG KONG WHICH SOARED 4072 OVER THE FIVE YEARS IN FACT HISTORICALLY FOREIGN MUTUAL FUNDS HAVE TENDED TO LAG BEHIND THE EAFE INDEX OVER 10 YEARS FOR INSTANCE FOREIGN FUNDS RETURNED 3037 WHILE THE EAFE INDEX SOARED 4018 IF YOU'RE CONCERNED ABOUT YOUR FOREIGNSTOCK FUND ANALYSTS SUGGEST CHECKING YOUR INTERNATIONAL FUND'S LATEST ANNUAL OR SEMIANNUAL REPORT TO MAKE SURE THE FUND ISN'T HEAVILY OVERWEIGHTED IN SMALLER ASIAN MARKETS AND TREMENDOUSLY UNDERWEIGHTED IN JAPAN ON AVERAGE DIVERSIFIED INTERNATIONAL FUNDS HAVE MORE THAN 18 OF THEIR ASSETS IN PACIFIC RIM COUNTRIES SUCH AS AUSTRALIA HONG KONG AND SINGAPORE ACCORDING TO MORNINGSTAR MUTUAL FUNDS INDEED FUNDS HAVE ALMOST AS MUCH INVESTED IN THESE MARKETS AS THE 19 THEY HAVE IN JAPAN THE EAFE INDEX ASSIGNS JAPAN A 44 WEIGHT THOUGH FEW FOREIGN FUNDS HAVE MORE THAN 25 INVESTED IN TOKYO STOCKS INVESTORS MAY WANT TO CONSIDER ONE OF THE FOREIGNSTOCK FUNDS THAT HAVE SIZABLE POSITIONS IN JAPAN SUCH AS ALLIANCE INTERNATIONAL FUND WITH 43 IN JAPAN AND VANGUARD/TRUSTEES' INTERNATIONAL PORTFOLIO WITH 31 ALTERNATIVELY INVESTORS COULD ADD A JAPAN SPECIALTY FUND TO THEIR PORTFOLIO SUGGESTS CHIP NORTON MANAGING EDITOR OF DONOGHUE'S MONEYLETTER A MONTHLY NEWSLETTER MR NORTON IS CURRENTLY ADVISING HIS SUBSCRIBERS TO HAVE 15 OF THEIR STOCK PORTFOLIOS IN A FUND SUCH AS FIDELITY JAPAN FUND T ROWE PRICE JAPAN FUND OR THE JAPAN FUND MANAGED BY SCUDDER STEVENS & CLARK WE THINK THAT THE JAPANESE MARKET HAS SOME GOOD UPSIDE FROM HERE HE SAYS IF YOU WANT TO MAKE SURE YOU DON'T LAG BADLY BEHIND THE EAFE INDEX THE SIMPLEST STRATEGY IS TO PURCHASE AN INDEX FUND WHICH SIMPLY BUYS THE STOCKS IN AN INTERNATIONALSTOCK INDEX IN AN EFFORT TO COPY THE INDEX'S PERFORMANCE IF YOU'RE BUYING THE TYPICAL INTERNATIONAL FUND YOU'RE BETTING AGAINST JAPAN NOTES MORNINGSTAR'S MR REKENTHALER IF YOU THINK THAT JAPAN WILL CONTINUE TO OUTPERFORM AND THAT THE SELLOFF AMONG THE SMALLER ASIAN MARKETS HAS ONLY JUST BEGUN AN INDEX FUND IS DEFINITELY GOING TO OUTPERFORM MOST INTERNATIONAL FUNDS VANGUARD GROUP OFFERS TWO NOLOAD FOREIGN INDEX FUNDS ONE FOR EUROPE AND ONE FOR THE PACIFIC REGION TAKEN TOGETHER THESE FUNDS WILL REPLICATE THE EAFE INDEX CHARLES SCHWAB CORP ALSO OFFERS A NOLOAD INTERNATIONAL INDEX FUND THOUGH THE FUND DOESN'T SEEK TO TRACK THE EAFE INDEX INSTEAD SCHWAB INTERNATIONAL INDEX FUND INVESTS IN THE 350 LARGEST FOREIGN COMPANIES BASED ON STOCKMARKET VALUE THE SCHWAB FUND HAS 32 OF ITS ASSETS INVESTED IN JAPAN ANOTHER ALTERNATIVE IS TO SKIP FUNDS ALTOGETHER AND INSTEAD DABBLE IN FOREIGN SHARES LISTED IN THE US WHICH TRADE IN THE FORM OF AMERICAN DEPOSITARY RECEIPTS THE ADVANTAGE OF GOING WITH THE ADRS IS THAT YOU HAVE MORE CONTROL SAYS MARKUS BARTH AN ANALYST IN MERRILL LYNCH & CO'S QUANTITATIVE DEPARTMENT YOU GET TO DECIDE WHAT YOU WANT TO OWN AND WHAT YOU DON'T WANT TO OWN BY USING ADRS FOR INSTANCE YOU CAN SKEW YOUR PORTFOLIO MORE HEAVILY TOWARD JAPAN AND AWAY FROM SMALLER ASIAN MARKETS AND USING ADRS WON'T NECESSARILY CRIMP YOUR RETURNS MR BARTH RECENTLY BEGAN TRACKING THE PERFORMANCE OF 184 NATIONALLY LISTED ADRS HE FOUND THAT ADRS ON AVERAGE TEND TO PERFORM AT LEAST AS WELL AS THEIR DOMESTIC MARKET THIS SUGGESTS THAT WHILE ONLY A SMALL PORTION OF FOREIGN STOCKS TRADE IN THE US AS LISTED ADRS US INVESTORS WON'T NECESSARILY GET MEDIOCRE RETURNS IF THEY STICK ONLY WITH THESE STOCKS HOW SHOULD YOU PICK AMONG ADRS DAVID UMSTEAD MANAGER OF THE QUANTITATIVE GROUP OF FUND'S BOSTON FOREIGN GROWTH & INCOME PORTFOLIO ARGUES THAT YOU SHOULD FAVOR STOCKS THAT ARE CHEAP RELATIVE TO THEIR BOOK VALUE WHICH IS THE DIFFERENCE BETWEEN A CORPORATION'S ASSETS AND ITS LIABILITIES HE STUDIED FOREIGNSTOCK RETURNS SINCE 1975 AND FOUND THAT STOCKS THAT TRADE AT A LOW PRICETOBOOK VALUE OUTPERFORMED HIGH PRICETOBOOKVALUE STOCKS IN 14 OUT OF THE PAST 18 YEARS ACCORDING TO MR UMSTEAD THE MOST ATTRACTIVE JAPANESE ADRS BASED ON PRICETOBOOK VALUE INCLUDE HITACHI LTD AND MATSUSHITA ELECTRIC INDUSTRIAL LTD AMONG EUROPEAN ADRS HE FAVORS SUCH CHOICES AS BRITISH STEEL PLC AND FIAT SPA ALL FOUR ADRS ARE LISTED ON THE NEW YORK STOCK EXCHANGE 9403160172 940316 WHO'S NEWS ROCHESTER TELEPHONE CORP ROCHESTER TELEPHONE CORP ROCHESTER NY FREDERICK R PESTORIUS 52 YEARS OLD CORPORATE VICE PRESIDENT OF SALES AND MARKETING AND A MEMBER OF THE COMPANY'S MANAGEMENT EXECUTIVE COMMITTEE WILL RETIRE FROM THIS OPERATOR OF TELEPHONE COMPANIES AND BUSINESSES IN LONG DISTANCE NETWORK SYSTEMS AND WIRELESS COMMUNICATIONS HE HAS BEEN WITH THE COMPANY 31 YEARS THE COMPANY SAID MR PESTORIUS WILL CONTINUE IN HIS POSTS UNTIL AT LEAST JULY A SUCCESSOR HASN'T BEEN NAMED 9403160171 940316 FINANCING BUSINESS ARKLA INC ARKLA INC HOUSTON SAID IT PLANS TO FILE WITH THE SECURITIES AND EXCHANGE COMMISSION ON AN OFFERING OF 100 MILLION IN COMMON STOCK THE NATURALGAS CONCERN SAID IT EXPECTS TO FILE A STATEMENT WITH THE SEC BEFORE THE END OF THE FIRST QUARTER SEPARATELY MOODY'S INVESTORS SERVICE INC SAID IT WILL REVIEW ARKLA'S CREDIT RATINGS FOR A POSSIBLE UPGRADE THE RATING CONCERN CITED ARKLA'S PLAN TO ISSUE EQUITY AND REDUCE DEBT RATINGS UNDER REVIEW ARE BA2 FOR SENIOR UNSECURED DEBT AND B1 FOR PREFERRED STOCK MOODY'S SAID WITH ABOUT 18 BILLION IN OBLIGATIONS AFFECTED 9403160170 940316 WHO'S NEWS READER'S DIGEST NAMES SCHADT CHIEF EXECUTIVE PLEASANTVILLE NY READER'S DIGEST ASSOCIATION INC THE WORLDWIDE PUBLISHING COMPANY NAMED JAMES P SCHADT 55 YEARS OLD CHIEF EXECUTIVE OFFICER AS OF AUG 1 MR SCHADT WILL RETAIN THE TITLE OF PRESIDENT HE HAD ALSO BEEN CHIEF OPERATING OFFICER AT READER'S DIGEST WHICH HE JOINED IN 1991 AFTER A CAREER AS A TOP EXECUTIVE AT SEVERAL CONSUMER PACKAGED GOODS COMPANIES HE SUCCEEDS GEORGE V GRUNE WHO TURNS 65 IN JULY AND HAS BEEN CHIEF EXECUTIVE FOR 10 YEARS MR GRUNE WILL REMAIN CHAIRMAN CONSULTING WITH MR SCHADT AND THE BOARD ON THE COMPANY'S GLOBAL STRATEGIC PLAN THE COMPANY DOESN'T HAVE A MANDATORY RETIREMENT AGE MR GRUNE ALSO WILL CONTINUE AS CHAIRMAN OF THE DEWITT WALLACEREADER'S DIGEST FUND AND THE LILA WALLACEREADER'S DIGEST FUND PHILANTHROPIC ORGANIZATIONS BASED IN NEW YORK AND ESTABLISHED BY THE FOUNDERS OF READER'S DIGEST THOUGH HE HAD NO BACKGROUND IN PUBLISHING BEFORE JOINING READER'S DIGEST MR SCHADT WAS PRAISED YESTERDAY BY MR GRUNE WHO SAID HIS SUCCESSOR HAS DEMONSTRATED A DEEP RESPECT FOR OUR EDITORIAL HERITAGE AND A KEEN UNDERSTANDING OF OUR DIRECT MAIL MARKETING BUSINESS BESIDES PUBLISHING US AND INTERNATIONAL EDITIONS OF READER'S DIGEST MAGAZINE THE COMPANY WITH ANNUAL REVENUE OF 28 BILLION ALSO SELLS BOOKS RECORDED MUSIC AND VIDEOCASSETTES THROUGH DIRECT MAIL AND RETAIL CHANNELS THE COMPANY ALSO PUBLISHES SPECIAL INTEREST MAGAZINES SUCH AS TRAVEL HOLIDAY AND AMERICAN HEALTH BEFORE COMING TO READER'S DIGEST MR SCHADT WAS WITH CADBURY SCHWEPPES PLC FOR 10 YEARS SERVING AS PRESIDENT AND CHIEF OPERATING OFFICER OF ITS GLOBAL BEVERAGE BUSINESS BEFORE THAT HE HELD SENIOR POSTS AT SARA LEE CORP AND PEPSICO AND BEGAN HIS CAREER AT PROCTER & GAMBLE AS A BRAND MANAGER 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 9403160169 940316 ENTERPRISE BUSINESSES FALL IN LOVE WITH WORKPLACE SAFETY TEAMS DRIVE IN STATE LEGISLATURES FOR LAWS GAINS STEAM AS SMALLER FIRMS BENEFIT BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL IT IS ONE REGULATION THAT SMALL BUSINESS IS LEARNING TO LOVE THE DRIVE IN STATE LEGISLATURES TO MAKE COMPANIES ESTABLISH WORKPLACESAFETY COMMITTEES IS GAINING MORE STEAM LEGISLATION PENDING IN CONGRESS WOULD APPLY THE REQUIREMENT NATIONWIDE AND THE STATE EXEMPTIONS FOR SMALL BUSINESSES ARE GETTING SKIMPIER IN THE PAST STATES TYPICALLY LET FIRMS WITH FEWER THAN 25 WORKERS OFF THE HOOK BUT MONTANA'S NEW LAW EXEMPTS ONLY THOSE WITH FEWER THAN SIX WORKERS AND NEBRASKA'S APPLIES TO ALL ENTERPRISES USUALLY SMALL BUSINESSES SQUAWK AT THE PROSPECT OF YET MORE RULES TO FOLLOW AND PAPERWORK TO COMPLETE BUT THIS TIME THE RECEPTION IS GENERALLY FAVORABLE THE REASON THE SAFETY TEAMS WHICH ARE GENERALLY MADE UP OF EQUAL NUMBERS OF WORKERS AND MANAGERS NOT ONLY REDUCE ACCIDENTS BUT ALSO LOWER WORKERS' COMPENSATION COSTS SOMETIMES SHARPLY THE EFFECT IS PARTICULARLY DRAMATIC AT SMALL COMPANIES BECAUSE MOST LARGE CORPORATIONS ALREADY HAVE SAFETY PROGRAMS AND COMMITTEES IN OPERATION JON EGGE OWNER OF M P PLUMBING CO IN CLACKAMAS ORE SAYS THAT HIS STATE'S LAW WHICH HE HELPED TO WRITE IS A SMASHING SUCCESS AND INDEED OREGON'S 1990 OVERHAUL OF ITS WORKERS' COMPENSATION SYSTEM IS OFTEN CITED AS A MODEL FOR REVERSING OUTOFCONTROL INSURANCEPREMIUM INCREASES THE OREGON LAW INCLUDES A BROAD RANGE OF MEASURES BESIDES THE CREATION OF SAFETY COMMITTEES FOR EXAMPLE IT STIPULATES THAT ANY GIVEN WORKPLACE SITUATION MUST BE THE MAJOR FACTOR NOT JUST ONE FACTOR IN AN INJURY OR HEALTH PROBLEM FOR AN EMPLOYEE TO CLAIM COMPENSATION IT ALSO INCLUDES A PROVISION ALLOWING MEDICAL ARBITERS TO DETERMINE THE EXTENT OF IMPAIRMENT FROM CERTAIN INJURIES AND AILMENTS SAFETY TEAMS ARE MANDATORY FOR COMPANIES WITH 11 OR MORE WORKERS AND FOR ALL COMPANIES IN HIGHRISK INDUSTRIES SUCH AS LOGGING THE OVERHAUL HAS DRIVEN WORKERS' COMPENSATION INSURANCE COSTS DOWN MARKEDLY ACCORDING TO ANNETTE TALBOTT COUNSEL FOR SEVERAL STATE SENATE COMMITTEES SHE SAYS RATES HAVE FALLEN BY AN AVERAGE OF MORE THAN 10 A YEAR OVER THE PAST THREE YEARS AND ARE PROJECTED TO DECLINE AN ADDITIONAL 43 IN 1994 FOR AN ESTIMATED SAVING SO FAR OF 236 MILLION MR EGGE BELIEVES THAT BECAUSE WORKERS AND MANAGEMENT CONSULT CLOSELY ON WAYS TO REDUCE WORKPLACE HAZARDS THE OPPORTUNITIES FOR FRAUD HAVE SHRUNK WE'VE CHANGED THE TONE OF CONVERSATION AT THE LOCAL TAVERN HE SAYS NOW IF YOU'RE NOT REALLY INJURED ON THE JOB YOU DON'T BOTHER TO MAKE AN APPLICATION BECAUSE YOU KNOW IT WON'T DO YOU ANY GOOD THE OREGON LAW HAS ITS CRITICS SHIRLEY BENSON FOR EXAMPLE GRIPES ABOUT A PROVISION THAT WOULD STRIP HER AUTOMATIC TRANSMISSIONS SPECIALTIES SHOP IN SALEM OF ITS SMALLBUSINESS EXEMPTION IF ONLY ONE OF ITS NINE EMPLOYEES MISSED A DAY OF WORK BECAUSE OF AN ACCIDENT EVEN SO MS BENSON LIKES THE IMPACT ON HER BOTTOM LINE MY WORKERS' COMP COSTS HAVE GONE WAY DOWN SINCE THE REVAMP SHE SAYS WHEN I GO TO TRADEASSOCIATION MEETINGS PEOPLE FROM OTHER STATES ARE WRINGING THEIR HANDS OTHER STATES ARE FOLLOWING IN OREGON'S FOOTSTEPS NEBRASKA FOR EXAMPLE IS IMPLEMENTING A LAW THAT TOOK EFFECT JAN 1 REQUIRING ALL COMPANIES TO SET UP SAFETY COMMITTEES REGARDLESS OF THEIR SIZE GARY HIRSH DIRECTOR OF SAFETY AND LABOR STANDARDS AT THE NEBRASKA DEPARTMENT OF LABOR PREDICTS THAT THE MEASURE WILL REDUCE WORKPLACE ACCIDENTS AT SMALL BUSINESSES AND ALL BUT ELIMINATE FINES IMPOSED BY THE FEDERAL OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION UP UNTIL NOW WORKERS UNHAPPY WITH WORKPLACE CONDITIONS WERE APT TO FILE COMPLAINTS WITH OSHA TRIGGERING INSPECTIONS THAT COULD LEAD TO FINES HE SAYS NOW HOWEVER THEY WILL BE MORE LIKELY TO AIR THEIR CONCERNS TO A FELLOW WORKER ON THE COMPANY'S SAFETY COMMITTEE WHICH CAN THEN TAKE CORRECTIVE ACTION THE RESULT NO PENALTIES NO FINE MR HIRSH SAYS THE NEW LAW ALSO REQUIRES EMPLOYERS WITH THE WORST SAFETY RECORDS TO HOLD CONSULTATIONS WITH THE STATE ON ELIMINATING HAZARDS AND SETS DEADLINES FOR REMOVING THEM MR HIRSH ADDS SOME NEBRASKA BUSINESSES LIKE THE NEW LAW WHILE OTHERS ARE TAKING A WAITANDSEE ATTITUDE THE NEBRASKA CHAMBER OF COMMERCE WAS INSTRUMENTAL IN ITS PASSAGE ALTHOUGH THE LINCOLN CHAPTER WITHHELD ITS SUPPORT DON BANZHAF COOWNER OF BANZHAF BROTHERS INC IN EUSTIS NEB SAYS HE THINKS IT IS SILLY TO HAVE TO MEET WITH HIS BROTHER AND TWO SONS TO DISCUSS SAFETY QUESTIONS THEY ARE ALL FAMILIAR WITH THE CONSTRUCTION FIRM HAS ONLY TWO OTHER EMPLOYEES INCLUDING MR BANZHAF'S WIFE IT'S A PAIN IN THE NECK HE SAYS PAINFUL OR NOT OTHER STATES ARE JUMPING ABOARD THE BANDWAGON WE'VE SEEN A LOT MORE ACTION IN THE STATES SINCE LAST YEAR SAYS JIM WEIDMAN MANAGER OF STATE MEDIA RELATIONS FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS IN WASHINGTON THE MONTANA LEGISLATURE LAST YEAR ENACTED A WORKERS'COMPENSATION REFORM PACKAGE THAT REQUIRES WORKPLACE SAFETY TEAMS AT COMPANIES WITH SIX OR MORE WORKERS MR WEIDMAN SAYS AND A NEW NORTH CAROLINA LAW REQUIRES COMPANIES WITH 11 OR MORE EMPLOYEES AND A HISTORY OF WORKPLACE ACCIDENTS TO SET UP SAFETY PROGRAMS INCLUDING WORKERMANAGEMENT COMMITTEES ACCORDING TO PATRICIA PLEASANTS THE NFIB DIRECTOR IN THAT STATE OTHER STATES OFFER INCENTIVES FOR BUSINESSES TO SET UP VOLUNTARY PROGRAMS A NEW PENNSYLVANIA LAW FOR EXAMPLE PROVIDES FOR 5 DISCOUNTS IN WORKERSCOMPENSATION PREMIUMS FOR COMPANIES THAT ESTABLISH SAFETY PLANS INCLUDING WORKERMANAGEMENT COMMITTEES WHILE A RECENT FLORIDA LAW SETS A 2 DISCOUNT NFIB DIRECTORS IN THOSE STATES SAY AND A BILL APPROVED BY VIRGINIA'S LEGISLATURE THIS YEAR PLEDGES STATE ASSISTANCE TO FIRMS THAT CREATE SAFETY TEAMS MEANWHILE THE CLINTON ADMINISTRATION IS SUPPORTING A BILL IN CONGRESS TO REQUIRE COMPANIES WITH MORE THAN 11 EMPLOYEES TO DEVELOP SAFETY PROGRAMS AND FORM EMPLOYEEMANAGEMENT SAFETY COMMITTEES THEODORE RONCA A LONG ISLAND WORKERS'COMPENSATION CONSULTANT ESTIMATES THAT MORE THAN 20 STATES HAVE SOME SORT OF PROVISION FOR SAFETY COMMITTEES 9403160168 940316 ECONOMY TRADE DEFICIT BROADENED DURING THE FOURTH QUARTER WASHINGTON THE BROADEST MEASURE OF THE TRADE DEFICIT WIDENED 345 BILLION IN THE FOURTH QUARTER TO 3154 BILLION THE COMMERCE DEPARTMENT SAID THE CURRENTACCOUNT TRADE FIGURE COVERS MERCHANDISE INVESTMENT INCOME GOVERNMENT PAYMENTS AND SERVICES SUCH AS TRAVEL AND TOURISM A DECREASE IN THE SERVICE SURPLUS A SHIFT TO A DEFICIT ON INVESTMENT INCOME AND LARGER NET UNILATERAL TRANSFERS MORE THAN OFFSET THE IMPROVING MERCHANDISE TRADE DEFICIT DURING THE QUARTER FOR THE YEAR THE CURRENTACCOUNT DEFICIT INCREASED TO 10924 BILLION FROM 6640 BILLION IN 1992 MUCH OF THE WIDENING WAS THE RESULT OF A WIDENING MERCHANDISE TRADE DEFICIT A SURPLUS ON INVESTMENT INCOME ACCOUNTED FOR THE REST OF THE INCREASE 9403160166 940316 WHO'S NEWS WALT DISNEY CO WALT DISNEY CO BURBANK CALIF RICHARD D NANULA 33YEAROLD SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MOVIE AND TELEVISION PROGRAMMING THEME PARKS AND CHARACTER MERCHANDISING CONCERN 9403160165 940316 WHO'S NEWS SOLECTRON CORP SOLECTRON CORP MILPITAS CALIF CHARLES DICKINSON 70 YEARS OLD WAS NAMED CHAIRMAN OF THIS ELECTRONICS MANUFACTURER HE SUCCEEDS WINSTON CHEN 50 WHO WILL REMAIN A DIRECTOR MR DICKINSON WHO HAD BEEN WORKING AS A MANAGEMENT CONSULTANT HAD BEEN CHAIRMAN FROM 1986 TO 1990 9403160164 940316 INTERNATIONAL SOUTH KOREA'S ANAM THRIVES BY SPOTTING ELECTRONICS NICHES THAT GIANTS OVERLOOK BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA KIM JOO JIN AND HIS DIMINUTIVE ANAM GROUP ARE IN A PRECARIOUS POSITION THEY MUST TREAD SOFTLY LEST THEY AROUSE SOUTH KOREA'S INDUSTRIAL GIANTS BUT NOT SO QUIETLY THAT THEY ARE IGNORED BY STODGY BUREAUCRATS OUTGUNNED BY HUGE CONGLOMERATES WHICH CONTROL THE PRODUCTION OF EVERYTHING FROM TEXTILES TO OIL TANKERS IN SOUTH KOREA MR KIM AND HIS ASSOCIATES HAVE BECOME EXPERTS AT IDENTIFYING SMALLER BUT LUCRATIVE ELECTRONICS MARKETS THAT THE BIGGER GROUPS HAVE PASSED BY ALONG THE WAY THE ANAM GROUP HAS EARNED A REPUTATION FOR BEING THE KIND OF INNOVATIVE FOCUSED CONCERN THAT KOREA INC NEEDS TO MAINTAIN ITS COMPETITIVE EDGE IT IS A STRATEGY THAT HAS ALREADY HELPED GROUP FLAGSHIP ANAM INDUSTRIES CO BECOME THE WORLD'S LEADING SEMICONDUCTORPACKAGING COMPANY GENERATING SALES OF ABOUT 1 BILLION LAST YEAR WHILE MAINTAINING ITS GRIP ON 40 OF THE WORLD'S CHIPPACKAGING BUSINESS INVESTORS ARE ATTRACTED TO ANAM'S COMMITMENT AND INNOVATION SAYS HAN ILSUK AN ANALYST AT BARCLAYS DE ZOETE WEDD SECURITIES LTD BECAUSE IT HAS BECOME SUCH A KEY NICHE PLAYER YOU CAN ALWAYS BE SURE OF ITS EARNINGS GROWTH NOW ANAM IS FOCUSING ON TELECOMMUNICATIONS WHILE THE BIG BUSINESS GROUPS KNOWN AS CHAEBOLS STALK HUGE CONTRACTS FOR FIBEROPTIC CABLE AND CELLULARPHONE NETWORKS ANAM IS HOMING IN ON ONE SECTOR RADIO SYSTEMS FOR USE BY TRANSPORTATION COMPANIES IT IS A SIMPLE BUT LUCRATIVE TECHNOLOGY THAT IS ALREADY REAPING GAINS IN JAPAN FOR MOTOROLA INC ANAM HAS INVESTED ABOUT 30 MILLION IN TRUNKRADIO RESEARCH WHICH MR KIM SAYS COULD EVENTUALLY GENERATE 1 BILLION IN LOCAL AND OVERSEAS SALES HOPEFULLY WE CAN CREATE A NEW INDUSTRY AND EXPORT IT TO CHINA AND SOUTHEAST ASIA SAYS THE 60YEAROLD MR KIM THE ONLY ROADBLOCK IS THE MINISTRY OF COMMUNICATIONS PART OF THE EXTENSIVE BUREAUCRACY THAT HAS MANAGED LOCAL INDUSTRY SINCE SOUTH KOREA LAUNCHED ITS ECONOMIC DEVELOPMENT IN THE LATE 1960S BEFORE ANAM CAN DEVELOP A RADIO SYSTEM IT MUST FIRST OBTAIN A LICENSE FROM THE MINISTRY AND THAT TAKES TIME WE'RE TRYING TO CONVINCE THE MINISTRY THAT WE'RE THE COMPANY THEY SHOULD DEAL WITH SAYS MR KIM WHO LECTURED ON ECONOMICS AT VILLANOVA UNIVERSITY BEFORE TAKING THE HELM AT ANAM IN 1992 ANAM'S APPROACH AND THE RESISTANCE IT IS ENCOUNTERING OFFERS A MICROCOSMIC LOOK AT SOUTH KOREA'S BUMPY TRANSITION FROM A CENTRALLY PLANNED DEVELOPING ECONOMY TO A SOPHISTICATED FREEMARKET ONE PRESIDENT KIM YOUNG SAM HAS MADE DEREGULATION INNOVATION AND GLOBALIZATION KEY PILLARS OF HIS ADMINISTRATION BUT HIS REFORMIST VISION ISN'T ALWAYS EMBRACED BY SOUTH KOREA'S POWERFUL CIVIL SERVANTS MANY OF WHOM ARE WARY OF PROPOSALS THAT COME FROM OUTSIDE THE BUREAUCRACY A SPOKESMAN FOR THE COMMUNICATIONS MINISTRY DECLINED TO COMMENT ON ANAM'S BID BUT THE MINISTRY HAS ANNOUNCED THAT IT WILL DECIDE ON THE LICENSE NEXT MONTH IT WOULDN'T BE THE FIRST TIME ANAM HAS INTRODUCED A NEW TECHNOLOGY TO SOUTH KOREA MR KIM'S FATHER AND GROUP FOUNDER KIM HYANG SOO OPENED A SMALL CHIPPACKAGING PLANT IN 1968 MAKING ANAM INDUSTRIAL THE FIRST SOUTH KOREAN COMPANY TO ENTER THE SEMICONDUCTOR INDUSTRY NEARLY TWO DECADES LATER ANAM SEMICONDUCTOR DESIGN CO DEVELOPED A PROCESS THAT GREATLY ENHANCES THE DENSITY OF CIRCUITS ON ASIC SEMICONDUCTORS WHICH EXPANDS THE APPLICATIONS OF EACH CHIP NOW NAMED ANAM SEMICONDUCTOR & TECHNOLOGY CO AND AWAITING APPROVAL FOR A LISTING ON THE KOREAN STOCK EXCHANGE THE COMPANY IS A WORLD LEADER IN ASIC DESIGN PACKAGING ANAM ELECTRONICS CO A CONSUMER ELECTRONICS MAKER AND THE GROUP'S ONLY LISTED AFFILIATE ANTICIPATED THE DEMAND FOR LARGESCREEN TELEVISIONS AND DOMINATED THAT MARKET UNTIL RIVALS FROM THE GOLDSTAR AND SAMSUNG GROUPS CAUGHT UP IT NOW HOLDS A 20 MARKET SHARE STILL AN AGGRESSIVE CAPACITY EXPANSION PROGRAM HAS SADDLED ANAM INDUSTRIAL WITH A RELATIVELY HIGH NET DEBTTOEQUITY RATIO WHICH HAS HOBBLED THE COMPANY'S EARNINGS GROWTH BUT ANALYSTS EXPECT THAT FIGURE TO DECLINE AND PROFIT GROWTH TO RECOVER IN THE NEXT TWO YEARS ANAM'S NARROW FOCUS MAKES IT AN EXCEPTION IN AN INDUSTRIAL CULTURE SEEMINGLY OBSESSED WITH SIZE AND BREADTH ON AVERAGE SOUTH KOREA'S CHAEBOLS CONTROL 21 AFFILIATES ENGAGED IN DIVERSE OFTEN UNPROFITABLE BUSINESSES ALL BUT ONE OF ANAM'S SIX AFFILIATES ARE RELATED TO ELECTRONICS AS A RESULT ANAM CAN MOVE FASTER WHEN AUSTRALIA'S CEDCOM NETWORK SYSTEMS WAS LOOKING FOR A LICENSING AND PRODUCTION AGENT FOR ITS WIRELESS LAN OFFICE NETWORK LAST JUNE ANAM S&T JUMPED AT THE CHANCE A DEAL WAS SIGNED BY LAST NOVEMBER WITH THESE MULTINATIONALS YOU'RE ALWAYS DEALING WITH SECOND LAYERS SAYS RALPH TOBIAS CEDCOM'S MANAGING DIRECTOR BUT WITH ANAM YOU DEAL STRAIGHT WITH THE CHAIRMAN I FIND THEIR VIEW QUITE REFRESHING CEDCOM'S SYSTEM WHICH IS PATENTED IN THE US SOUTH KOREA AND AUSTRALIA REPLACES WIRES WITH SIGNALS TRANSMITTED FROM CEILING STATIONS THE TECHNOLOGY IS SO NEW THAT IT IS NOT YET STANDARDIZED WHICH HAS DISSUADED SOUTH KOREA'S BIG COMPANIES FROM ENTERING THE INDUSTRY MAYBE WHEN THE BUSINESS MATURES THE CHAEBOLS WILL GET INTO IT SAYS JS CHOI SALES DIRECTOR FOR AT&T COMMUNICATIONS KOREA LTD MR KIM SAYS HE EXPECTS A PROTOTYPE WIRELESS LAN SYSTEM TO BE READY BY THE END OF THIS MONTH WITH PRODUCTION SCHEDULED FOR JUNE THE SYSTEM IS NOT SO LARGE OR POWERFUL THAT IT NEEDS A LICENSE FROM THE MINISTRY WITH ANY LUCK HE RECKONS ANAM WILL BE MARKETING THE SYSTEM IN THE US BEFORE THE CHAEBOLS CAN REACT YOU HAVE TO CREATE YOUR OWN MARKET SAYS STEPHEN KIM ANAM S&T'S PRESIDENT THAT'S HOW WE SURVIVED FOR 30 YEARS IN KOREA AS SUCH A SMALL COMPANY HE SAYS 9403160163 940316 TECHNOLOGY GILEAD SCIENCES TESTS DRUG FOSTER CITY CALIF GILEAD SCIENCES INC SAID IT HAS BEGUN CLINICAL TRIALS OF A DRUG DESIGNED TO TREAT GENITAL WARTS ASSOCIATED WITH THE AIDS VIRUS THE STUDY WILL EVALUATE THE SAFETY AND POTENTIAL EFFICACY OF ITS GS 504 DRUG WHEN APPLIED ONCEDAILY TO GENITAL WARTS CAUSED BY THE HUMAN PAPILLOMAVIRUS IN PATIENTS WITH HIV INFECTION 9403160162 940316 INTERNATIONAL DUTCH AUTO INDUSTRY'S REVENUE THE HAGUE REVENUE IN THE DUTCH AUTOMOTIVE RETAILING AND SERVICING SECTOR FELL A NOMINAL 12 AND A PRICEADJUSTED 14 IN THE FOURTH QUARTER OF 1993 FROM A YEAR EARLIER THE GOVERNMENT SAID DATA PUBLISHED BY THE CENTRAL BUREAU FOR STATISTICS ALSO SHOW REVENUE WAS DOWN A NOMINAL 68 FOR ALL OF 1993 FROM A YEAR EARLIER ON A PRICE ADJUSTED BASIS REVENUE FELL 82 9403160161 940316 WHO'S NEWS ALLIEDSIGNAL INC ALLIEDSIGNAL INC MORRIS TOWNSHIP NJ ANDREW C SIGLER 62 YEARS OLD WAS NAMED A DIRECTOR OF THIS ADVANCED MANUFACTURING COMPANY TEMPORARILY BRINGING BOARD MEMBERSHIP TO 15 TWO DIRECTORS HAVE REACHED RETIREMENT AGE AND WILL SERVE UNTIL THE COMPANY'S ANNUAL MEETING APRIL 25 MR SIGLER IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CHAMPION INTERNATIONAL CORP A MAKER OF PAPER PLYWOOD AND LUMBER 9403160160 940316 WHO'S NEWS HARLAN CO HARLAN CO NEW YORK GERALD S COHEN WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER NEW POSITIONS AT THIS REALESTATE INVESTMENT BANK AND ADVISORY FIRM MR COHEN 48 YEARS OLD MOST RECENTLY WAS MANAGING DIRECTOR OF PEERS & CO A SUBSIDIARY OF LONGTERM CREDIT BANK OF JAPAN LTD 9403160159 940316 INTERNATIONAL JAPANESE INSOLVENCIES FALL TOKYO JAPANESE CORPORATE INSOLVENCIES IN FEBRUARY FELL 75 FROM A YEAR EARLIER TO 1030 CASES PRIVATE CREDIT RESEARCH AGENCY TEIKOKU DATABANK LTD SAID DESPITE THE DROP THE NUMBER OF CASES REMAINED ABOVE 1000 FOR THE 13TH CONSECUTIVE MONTH THE AGENCY SAID DEBT LEFT BEHIND BY INSOLVENT COMPANIES JUMPED 14 FROM A YEAR EARLIER TO 50768 BILLION YEN 478 BILLION 9403160158 940316 WHO'S NEWS ICF KAISER INTERNATIONAL INC ICF KAISER INTERNATIONAL INC FAIRFAX VA MICHAEL J ROWNY 43 YEARS OLD RESIGNED AS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS ENGINEERING CONSTRUCTION AND CONSULTINGSERVICES COMPANY THE COMPANY DIDN'T GIVE A REASON RONALD R SPOEHEL 36 CURRENTLY SENIOR VICE PRESIDENT AND TREASURER WAS NAMED ACTING CHIEF FINANCIAL OFFICER EFFECTIVE IMMEDIATELY 9403160157 940316 INTERNATIONAL ERICSSON ORDER FROM LEBANON STOCKHOLM SWEDISH TELECOMMUNICATIONS GROUP TELEFON AB LM ERICSSON SAID IT RECEIVED AN ORDER FOR 12 BILLION SWEDISH KRONOR 1529 MILLION TO RESTORE AND EXPAND THE TELECOMMUNICATIONS NETWORK IN LEBANON THE ORDER WAS PLACED BY LEBANON'S MINISTRY OF POST AND TELECOMMUNICATIONS THE GROUP SAID THE PROJECT IS SCHEDULED FOR COMPLETION IN 1996 IT SAID 9403160156 940316 WHO'S NEWS KEMPER CHIEF NOW THREATENED BY BID FROM GE MAY HAVE DONE JOB TOO WELL BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DAVID B MATHIS HAS SPENT THE PAST TWO YEARS CLEANING UP KEMPER CORP BUT NOW IT'S POSSIBLE HE'LL BE CLEARING OUT GE CAPITAL CORP'S 22 BILLION BID FOR THE LONG GROVE ILL MONEY MANAGEMENT BROKERAGE AND INSURANCE COMPANY COMES JUST AS THE KEMPER CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS BEGINNING TO SEE THE PAYOFF FROM HIS WIDELY PRAISED RESTRUCTURING EFFORTS SINCE TAKING CHARGE IN MARCH 1992 MR MATHIS HAS FOCUSED ON MAKING THE COMPANY MORE ATTRACTIVE TO INVESTORS THROUGH A RAPIDFIRE DIVESTITURE OF THREE LONGSTANDING BUSINESSES AND BY DEALING WITH KNOTTY REALESTATE PROBLEMS THE REVAMPING APPARENTLY WORKED AT LEAST ENOUGH TO ATTRACT THE HUGE GENERAL ELECTRIC CO FINANCIALSERVICES UNIT WHICH HAS BID 55 A SHARE FOR KEMPER MR MATHIS INITIALLY REBUFFED THE PROPOSAL AS NOT IN THE BEST INTEREST OF OUR STOCKHOLDERS BUT THE BOARD IS SCHEDULED TO FORMALLY REVIEW THE GE CAPITAL PLAN TOMORROW AT A REGULARLY SCHEDULED BOARD MEETING MR MATHIS AND KEMPER OFFICIALS HAVE KEPT MUM IN THE WAKE OF THE TAKEOVER BID BUT A PERSON CLOSE TO THE 55YEAROLD CAREER KEMPER EXECUTIVE SAYS MR MATHIS WASN'T SURPRISED THAT AN OFFER SURFACED WHEN YOU GO THROUGH THE KIND OF RESTRUCTURING KEMPER'S GONE THROUGH THE PERSON SAYS YOU SHOW UP ON EVERY INVESTMENT BANKER'S SCREEN IN THE COUNTRY MR MATHIS IS SAID TO HAVE BEEN SURPRISED AT THE LOW PRICE AND THE HOSTILE STANCE GE ADOPTED GE'S BID COMES AT A TIME WHEN MR MATHIS AND WALL STREET HAD EXPECTED KEMPER TO SHOW INCREASED EARNINGS MOMENTUM IN PARTICULAR THE COMPANY HAS DRASTICALLY REDUCED ITS EXPOSURE TO PROBLEM REALESTATE LOANS WHICH IN THE PAST THREE YEARS GENERATED ABOUT 1 BILLION IN RESERVES WRITEDOWNS AND JOINTVENTURE OPERATING LOSSES SUCH LOSSES ARE EXPECTED TO BE NEGLIGIBLE IN 1994 IN PART BECAUSE OF THE INTENSE MANAGEMENT RESOURCES THE COMPANY HAS APPLIED KEMPER FINALLY SEEMS TO HAVE ITS REALESTATE PROBLEMS UNDER CONTROL SAID MERRILL LYNCH ANALYST ALLEN NADLER IN A RECENTLY ISSUED REPORT PRAISING MANAGEMENT'S SUCCESS IN REVITALIZING THE COMPANY HE FIGURES PROFIT CAN GROW AT A 15 AVERAGE ANNUAL RATE OVER THE NEXT FIVE YEARS SOFTSPOKEN AND LOWKEY MR MATHIS IS CONSIDERED A METHODICAL AND DELIBERATE MANAGER NOT EASILY DEFLECTED FROM THE GOALS HE SETS INDEED HIS MAKEOVER OF KEMPER INCLUDED DIVESTITURE OF THE REINSURANCE OPERATION HE ONCE HEADED SALE OF THE PROPERTYCASUALTY LINES THAT WERE THE COMPANY'S HISTORIC CENTERPIECE AND TESTING THE WATERS TO DETERMINE WHETHER THE COMPANY'S BROKERAGE BUSINESS MIGHT FETCH A SATISFACTORY PRICE MR MATHIS'S LINKS WITH KEMPER AND ITS PREDECESSOR DATE BACK TO HIS LATE TEENS WHEN HE ATTENDED LAKE FOREST COLLEGE IN SUBURBAN CHICAGO AS A KEMPER SCHOLAR A PROGRAM THAT HELPS STUDENTS WITH TUITION AND PROVIDES THEM WITH SUMMER JOBS AT THE INSURANCE COMPANY AFTER GRADUATING IN 1960 HE JOINED THE COMPANY'S SAN FRANCISCO OFFICE AND HANDLED INSURANCE UNDERWRITING LATER JOBS TOOK HIM TO BELGIUM AS PART OF KEMPER'S OVERSEAS EXPANSION AND IN 1982 HE WAS NAMED HEAD OF THE COMPANY'S REINSURANCE OPERATION IN 1989 HE WAS NAMED EXECUTIVE VICE PRESIDENT FOR THE INSURANCE SERVICES GROUP THE FOLLOWING YEAR HE BECAME PRESIDENT AND CHIEF OPERATING OFFICER AT KEMPER CORP WORKING UNDER JOSEPH E LUECKE FORMER CHAIRMAN AND CHIEF EXECUTIVE HE ASSUMED THE TOP KEMPER CORP JOBS IN 1992 WHEN HIS PREDECESSOR RETIRED HE THEN SET TO WORK REVAMPING KEMPER A YEAR AGO IN ONE OF HIS BIGGEST RESTRUCTURING MOVES KEMPER CORP SURPRISED OBSERVERS BY SWAPPING ITS REINSURANCE UNIT TO FORMER PARENT LUMBERMENS MUTUAL CASUALTY CO IN EXCHANGE FOR KEMPER SHARES LUMBERMENS STILL HELD THE MOVE TRIMMED LUMBERMENS' KEMPER HOLDING TO ABOUT 4 FROM 38 KEMPER SEPARATELY SOLD OFF ITS TWO PROFITABLE REGIONAL PROPERTYCASUALTY BUSINESSES LAST YEAR MR MATHIS HAS ALSO SOUGHT TO REALIGN THE SLIMMEDDOWN COMPANY SO THAT THE ONCESPRAWLING KEMPER SPEAKS WITH ONE VOICE WITH THAT WORK LARGELY DONE HE'S ALSO KNOWN TO BE INTERESTED IN FILLING GAPS IN THE COMPANY'S ASSETMANAGEMENT BUSINESS AND PERHAPS MAKING AN ACQUISITION OF A VALUESTYLE ASSET MANAGER THAT WOULD COMPLEMENT KEMPER'S OWN GROWTHORIENTED INVESTMENT STYLE 9403160155 940316 WHO'S NEWS BROTHERS GOURMET COFFEES BROTHERS GOURMET COFFEES BOCA RATON FLA JERRY HOLLAND WAS NAMED CHIEF FINANCIAL OFFICER OF THIS MAKER AND DISTRIBUTOR OF COFFEES MR HOLLAND 42 YEARS OLD HAD BEEN VICE PRESIDENT OF OPERATIONS HE SUCCEEDS ROBERT SPINDLER 42 WHO RESIGNED MARCH 1 TO PURSUE OTHER BUSINESS OPPORTUNITIES ACCORDING TO THE COMPANY 9403160154 940316 MARKETING & MEDIA ELECTRONIC DATA PLANS NORTH AMERICAN LINK OF ARCADETYPE GAMES DALLAS ELECTRONIC DATA SYSTEMS CORP STRUCK A DEAL TO ELECTRONICALLY LINK TENS OF THOUSANDS OF COINOPERATED ARCADE GAMES THROUGHOUT NORTH AMERICA IF AN INITIAL TEST PROJECT SUCCEEDS VIDEOGAME PLAYERS IN ONE STATE OR PROVINCE WILL BE ABLE TO COMPETE AGAINST THEIR COUNTERPARTS ACROSS THE CONTINENT ACCORDING TO EDS AND THE CHICAGOBASED AMUSEMENT AND MUSIC OPERATORS ASSOCIATION JOHN SCHUMACHER EXECUTIVE VICE PRESIDENT OF THE 1700MEMBER ASSOCIATION SAID THE GROUP ENVISIONS VIRTUAL TOURNAMENTS WHERE PLAYERS OF ELECTRONIC DART GAMES FOR EXAMPLE COULD COMPETE AGAINST EACH OTHER EDS REACHED THE 10YEAR DEAL WHOSE TERMS WEREN'T DISCLOSED WITH NATIONAL AMUSEMENT NETWORK INC A JOINT VENTURE OF THE TRADE ORGANIZATION AND CANADA'S TVPHONE INC A SPOKESWOMAN FOR EDS A UNIT OF GENERAL MOTORS CORP SAID THE COMPUTERSERVICES CONCERN WILL BE PAID ACCORDING TO THE NUMBER OF PEOPLE WHO PLAY THE HOOKEDUP GAMES OFFICIALS SAID THEY EXPECT AS MANY AS 100000 GAME TERMINALS THROUGHOUT THE US CANADA AND MEXICO TO BE LINKED WITHIN FIVE YEARS FOR EDS WHICH WILL PROVIDE THE NETWORKING AND COMPUTER HARDWARE EXPERTISE THE PLAN IS FURTHER PROOF OF A SHIFT IN FOCUS THE COMPANY A LEADER IN THE CORPORATE COMPUTER BUSINESS HAS IN THE PAST YEAR MOVED TO BECOME A FORCE IN THE GROWING CONSUMER MARKET FOR MULTIMEDIA PRODUCTS AND SERVICES EARLIER THIS YEAR EDS SAID IT BOUGHT A 317 STAKE IN AN ELECTRONICBANKING SYSTEM IN EUROPE AND LAST YEAR IT ANNOUNCED PLANS TO WORK WITH SPI HOLDING INC TO PROVIDE ONDEMAND VIDEOS TO HOTEL ROOMS EDS MEANTIME REMAINS IN THE RUNNING FOR A 4 BILLION COMPUTERSERVICES CONTRACT FROM XEROX CORP EXPECTED TO BE ANNOUNCED LATER THIS YEAR 9403160153 940316 TEXAS JOURNAL LETTERS TO THE EDITOR NO WET SHIRTS REGARDING MICHAEL ALLEN'S MARCH 9 ECONOMIC FOCUS ARTICLE ON SOUTH PADRE ISLAND IT'S PARTY TIME TOURISTS POUR INTO SOUTH PADRE ISLAND HERE ON GALVESTON ISLAND WE ARE INTO FAMILYORIENTED TOURISM WE DO NOT HAVE WET TSHIRT CONTESTS WE DO NOT HAVE ALCOHOL ON THE BEACHES AND WE ARE RECLAIMING MORE BEACHES FROM THE GULF 9403160152 940316 BUSINESS BRIEF MACY POSTS SHARPLY HIGHER NET INCOME DESPITE FISCAL 2ND PERIOD'S QUAKE SNOW NEW YORK RH MACY & CO REPORTED STRONG OPERATING EARNINGS AND NET INCOME FOR ITS FISCAL SECOND QUARTER DESPITE BLANKETS OF SNOW IN KEY REGIONS AND STORE DAMAGE FROM THE LOS ANGELES EARTHQUAKE THE COMPANY ALSO REPORTED A MODEST INCREASE OF 14 IN SAMESTORE SALES A KEY RETAILING INDICATOR FOR THE QUARTER WHICH ENDED JAN 29 IN FEBRUARY THAT MEASURE WHICH CHARTS SALES AT STORES OPEN A YEAR OR MORE GREW AT AN EVEN STRONGER PACE UP CLOSE TO 6 FROM A YEAR EARLIER MACY SAID INCREASES IN MERCHANDISE GROSS MARGINS AND REDUCTIONS IN EXPENSES RESULTED IN A NEARLY SEVENFOLD INCREASE IN NET INCOME TO 605 MILLION COMPARED WITH A YEAREARLIER 89 MILLION EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION FOR THE QUARTER EXCEEDED THE COMPANY'S BUSINESS PLAN RISING 61 TO 2272 MILLION FROM A YEAREARLIER 1411 MILLION MACY SAID THAT BASED ON THE QUARTERLY RESULTS AND ON FEBRUARY'S PRELIMINARY RESULTS THE COMPANY HAS MET OR EXCEEDED ITS PLAN FOR 13 OF THE PAST 14 MONTHS TOTAL SALES FOR THE QUARTER FELL 2 TO 199 BILLION FROM 204 BILLION SHOWING SOME EFFECT FROM DAMAGE TO FOUR STORES IN THE LOS ANGELES EARTHQUAKE ISAAC LAGNADO OF TACTICAL RETAIL SOLUTIONS INC AN INDUSTRY CONSULTANT SAID HE WAS PLEASANTLY SURPRISED AT MACY'S SAMESTORE GAINS MACY DID BETTER THAN SEVERAL OTHER DEPARTMENT STORES HE SAID THE FEBRUARY GAIN HE SAID TELLS US THE FIRST DELIVERIES OF SPRING ARE SHOWING GOOD SALES IT IS VITAL FOR MACY TO MEET BUSINESSPLAN PROJECTIONS FOR EARNINGS GROWTH AND TO POST HEALTHY INCREASES IN SAMESTORE SALES AS IT PREPARES TO FILE A REORGANIZATION PLAN IN FEDERAL BANKRUPTCY COURT IN NEW YORK THE COMPANY HAS BEEN OPERATING UNDER FEDERAL BANKRUPTCY PROTECTION FOR MORE THAN TWO YEARS MACY HOPES THAT STRONGER OPERATING RESULTS WILL IN PART HELP FEND OFF FEDERATED DEPARTMENT STORES INC A MACY RIVAL AND SENIOR CREDITOR THAT HAS SAID IT WANTS TO MERGE THE TWO DEPARTMENTSTORE CHAINS MYRON E ULLMAN III MACY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID CONSIDERING DISRUPTIONS BY SNOWSTORMS AND THE EARTHQUAKE SAMESTORE SALES GAINS IN THE MONTHS OF JANUARY AND FEBRUARY WERE VERY ENCOURAGING HE SAID IMPROVEMENTS IN MERCHANDISING AND ONGOING PROGRAMS TO REDUCE EXPENSES HAVE IMPROVED MACY'S BOTTOM LINE HE ALSO SAID MACY WAS WORKING VIGOROUSLY WITH CREDITORS AND A COURTAPPOINTED MEDIATOR CYRUS VANCE TO DEVELOP A CONSENSUAL PLAN OF REORGANIZATION 9403160151 940316 KMART LEAVES PAYOUT UNCHANGED AT 24 CENTS RECORD IS IN JEOPARDY TROY MICH KMART CORP DIRECTORS DECLINED TO INCREASE THE COMPANY'S QUARTERLY DIVIDEND BUT STOPPED SHORT OF SAYING THEY WILL HALT THE RETAILER'S RECORD OF 29 CONSECUTIVE YEARS OF HIGHER DIVIDENDS IN LEAVING THE QUARTERLY PAYOUT UNCHANGED AT 24 CENTS A SHARE KMART SAID THE BOARD RECOGNIZES THE IMPORTANCE OF THE DIVIDEND RECORD BUT SAID BASED ON 1993 RESULTS IT IS PREMATURE TO CONSIDER INCREASING THE PAYOUT THIS SPRING HIT BY RESTRUCTURING AND OTHER CHARGES KMART POSTED A LOSS OF 974 MILLION OR 215 A SHARE IN 1993 ON SALES OF 3416 BILLION KMART TYPICALLY INCREASES ITS DIVIDEND AT THIS TIME OF YEAR BUT A SPOKESMAN SAID THE BOARD COULD STILL INCREASE IT LATER IN THE YEAR IN LATE NEW YORK STOCK EXCHANGE TRADING KMART WAS QUOTED AT 18 UP 125 CENTS 9403160150 940316 CIBA EXTENDS AFFYMAX ACCORD BASEL SWITZERLAND CIBAGEIGY LTD SAID IT EXTENDED ITS RESEARCH COLLABORATION WITH AFFYMAX NV OF AMSTERDAM FOR AN ADDITIONAL YEAR CIBAGEIGY IS CURRENTLY FUNDING DRUG DISCOVERY RESEARCH AT AFFYMAX UNDER AN AGREEMENT INITIATED IN JULY 1991 AFFYMAX IS INVOLVED IN IDENTIFYING DRUG CANDIDATES THAT INTERACT WITH CERTAIN UNDISCLOSED MOLECULAR TARGETS WHILE CIBAGEIGY WILL BE RESPONSIBLE FOR CLINICAL DEVELOPMENT AND MARKETING OF COMPOUNDS DISCOVERED UNDER THE AGREEMENT 9403160149 940316 CITIZENS FIRST BANCORP CAPITAL GLEN ROCK NJ CITIZENS FIRST BANCORP SAID FEDERAL REGULATORS HAVE ENDED CERTAIN CAPITAL LEVEL REQUIREMENTS AND RESTRICTIONS THE RESTRICTIONS WERE IMPOSED IN 1990 BY THE FEDERAL RESERVE BANK OF NEW YORK AND THE OFFICE OF THE COMPTROLLER OF THE CURRENCY UNTIL THE BANK HOLDING COMPANY IMPROVED ITS CAPITAL RATIOS AND OVERALL FINANCIAL CONDITIONS THE COMPANY'S PRINCIPAL HOLDING IS CITIZENS FIRST NATIONAL BANK OF NEW JERSEY 9403160148 940316 JUDGE CLEARS PURCHASE OF GITANO NEW YORK GITANO GROUP INC SAID US BANKRUPTCY COURT JUDGE JEFFRY GALLET IN NEW YORK APPROVED THE PREVIOUSLY ANNOUNCED AGREEMENT FOR CHICAGOBASED FRUIT OF THE LOOM INC TO BUY THE ASSETS OF GITANO FOR 100 MILLION THE TWO COMPANIES ANNOUNCED THE PURCHASE AGREEMENT ON MARCH 1 THE SAME DAY THAT GITANO FILED FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE GITANO SPOKESMAN SAID THE SALE IS EXPECTED TO CLOSE BY THE END OF THIS WEEK 9403160147 940316 INTERNATIONAL GERMAN RETAIL SALES RISE WIESBADEN GERMANY GERMAN RETAIL SALES ROSE A REAL OR INFLATIONADJUSTED 1 AND A NOMINAL 3 IN JANUARY FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE SAID IN A PRELIMINARY REPORT IN WESTERN GERMANY ALONE RETAIL SALES ROSE A REAL 1 AND A NOMINAL 2 FROM A YEAR EARLIER GERMAN RETAIL SALES FOR THE MONTH ROSE A REAL 3 FROM DECEMBER AND A NOMINAL 2 ON A SEASONALLY ADJUSTED BASIS THE STATISTICS OFFICE DECLINED TO RELEASE INDEX LEVELS AND SAID THE PERCENTAGES ARE ROUNDED 9403160146 940316 WORLD MARKETS LONDON STOCKS JUMP ON HOPES FOR LOWER RATES PRICES RISE IN FRANKFURT END MIXED IN TOKYO A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES JUMPED 1 FINISHING NEAR THEIR HIGHS ON IMPROVED SENTIMENT ABOUT INTEREST RATES AND STRENGTH IN THE FUTURES MARKET FRANKFURT EQUITIES GAINED ALMOST 1 PARTLY ON A USBASED INVESTMENT BANK'S RECOMMENDATION TO WEIGHT THE GERMAN MARKET MORE HEAVILY IN GLOBAL PORTFOLIOS TOKYO PRICES ENDED MIXED TUESDAY AS INDEXLINKED ARBITRAGE BUYING COULDN'T OVERCOME SUBSTANTIAL PROFITTAKING BRINGING THE MARKET'S THREEDAY WINNING STREAK TO AN END WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11604 UP 014 REFLECTING HIGHER EUROPEAN AND ASIA/PACIFIC MARKETS AND LOWER AMERICAN MARKETS WATER UTILITY STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12422 UP 308 OR 25 WITH EAUX OF FRANCE POSTING A 5 GAIN IN ITS LOCAL CURRENCY CASINO STOCKS TRAILED AT 19865 DOWN 321 OR 16 WITH CASINO MUNICIPAL DE CANNES OF FRANCE SLIDING 45 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SURGED 340 POINTS TO 32674 JUST 21 POINTS OFF THE SESSION PEAK THE FT 30STOCK INDEX ADVANCED 231 POINTS TO 25693 VOLUME WAS 6163 MILLION SHARES COMPARED WITH 5563 MILLION SHARES A DAY EARLIER THE MARKET WAS BUOYED BY HOPES THAT EUROPEAN INTEREST RATES ARE POISED TO FALL FURTHER AND THAT ANY US RATE BOOST WILL BE DELAYED NEW US DATA ON FEBRUARY PRODUCER PRICES SHOWED LITTLE INFLATIONARY PRESSURE IN THAT ECONOMY THOUGH US INDUSTRIAL PRODUCTION FIGURES ROSE MORE THAN EXPECTED IN BRITAIN GROWING EXPECTATIONS THAT THE BASE LENDING RATE MAY BE CUT SOON INTENSIFIED FOLLOWING AN INDUSTRIAL GROUP'S REPORT INDICATING RETAIL SALES GROWTH HAS SLOWED MEANWHILE THE MARCH POSITION ON THE STOCKINDEX FUTURES CONTRACT WHICH EXPIRES FRIDAY STOOD AT A PREMIUM TO THE STOCK MARKET FOR THE FIRST TIME IN SEVERAL WEEKS IN FRANKFURT THE DAX 30STOCK INDEX CLIMBED 2042 POINTS TO 216559 MOMENTUM CARRIED OVER FROM THE PREVIOUS DAY'S AFTERHOURS TRADING AND PRICES JUMPED EARLY YESTERDAY ON NEWS THAT MORGAN STANLEY RAISED ITS RECOMMENDED WEIGHTING ON GERMAN SHARES FINANCIAL ISSUES POSTED THE LARGEST GAINS ATTRIBUTED TO THE INVESTMENT BANK'S OVERWEIGHT RECOMMENDATION FOR THE SECTOR AS WELL AS TO HOPES THE GERMAN BUNDESBANK THE CENTRAL BANK WILL EASE MONETARY POLICY TOMORROW BEFORE BREAKING FOR A FOURWEEK HOLIDAY IN PARIS STOCKS RALLIED 2 AS BROAD AND ENTHUSIASTIC BUYING OF FINANCIAL ISSUES LED THE BROADER MARKET UP INVESTORS WERE INCREASINGLY OPTIMISTIC ABOUT INTERESTRATE REDUCTIONS LED BY THE BUNDESBANK WHICH WOULD GIVE THE FRENCH CENTRAL BANK LEEWAY TO FOLLOW SUIT IN AMSTERDAM PRICES GAINED SOLIDLY ON A SLIGHTLY FIRMER US DOLLAR IN CURRENCY DEALINGS AND IN LINE WITH STRENGTH ON OTHER EUROPEAN BOURSES IN MILAN STOCKS ROSE IN THIN ACTIVITY INFLUENCED BY IMPROVING ITALIAN ECONOMIC FUNDAMENTALS AND EXPECTED DECLINES IN EUROPEAN INTEREST RATES IN MADRID STOCKS FINISHED HIGHER FOR THE SECOND DAY IN A ROW ENCOURAGED BY BUOYANT EUROPEAN STOCK AND BOND MARKETS THOUGH FAIRLY LOW TURNOVER INDICATED SOME JITTERS ABOUT A POSSIBLE CORRECTION IN ZURICH SHARES JUMPED 13 THOUGH TRADING WAS QUIET AS BUYERS INCLUDING OVERSEAS INVESTORS FOCUSED ON BLUE CHIPS IN THE BANKING INSURANCE CHEMICAL AND FOOD SECTORS IN MEXICO CITY THE MARKET TUMBLED 28 IN BUSY TRADING AS INVESTORS CONTINUED TO BE UNNERVED BY DEVELOPMENTS IN MEXICO'S COMING PRESIDENTIAL ELECTION THAT COULD UPSET ECONOMIC CONTINUITY EQUITIES ALSO WERE JOLTED BY THE REPORTED KIDNAPPING MONDAY OF A MEXICAN FINANCIAL EXECUTIVE SOME INVESTORS FEARED THIS COULD SIGNAL A NEW WAVE OF VIOLENCE FOLLOWING THE PEASANT UPRISING IN THE SOUTH IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SURGED 41084 POINTS MONDAY SLIPPED 1730 TO 2050885 IN TRADING WEDNESDAY THE NIKKEI ROSE 20312 POINTS TO CLOSE THE MORNING SESSION AT 2071197 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 550 MILLION SHARES UP FROM 5145 MILLION SHARES A DAY EARLIER GAINERS TOPPED LOSERS 550499 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 1997 POINTS MONDAY EDGED UP 307 TO 164294 DESPITE THE MIXED SHOWING UNDERLYING STRENGTH WAS INDICATED BY THE NIKKEI'S ABILITY TO CLOSE ABOVE 20500 ON THE LAST DAY THAT MANY FUNDS COULD SELL SHARES BEFORE THEY CLOSE THEIR BOOKS FOR THE FISCAL YEAR ENDING MARCH 31 ANALYSTS SAID THE MARKET HAD FINALLY MOVED INTO A PREFERRED PATTERN OF WIDERANGING PARTICIPATION INCLUDING INDIVIDUAL OVERSEAS AND INSTITUTIONAL INVESTORS AND BROKERS DEALING FOR THEIR OWN ACCOUNTS SHARES SCORED EARLY GAINS TUESDAY LIFTED BY INDEXLINKED ARBITRAGE BUYING ON A RISE IN CHICAGO FUTURES PRICES THE PREVIOUS DAY BUT THE NIKKEI LATER MET PROFITTAKING AS MANY INVESTORS BOWED OUT FOLLOWING RECENT STEADY GAINS IN HONG KONG STOCKS SANK 12 IN EXTREMELY THIN TRADING PRICES OPENED HIGHER BUT INTEREST DWINDLED DESPITE SIGNS THAT THE US AND CHINA MANAGED TO REACH SOME MINOR AGREEMENTS IN BEIJING TALKS HANDY EXCUSES FOR PROFITTAKING EMERGED INCLUDING THE POSSIBILITY THAT THE US WILL REVOKE FAVORABLE TRADE STATUS FOR CHINA WHICH IS CLOSELY LINKED ECONOMICALLY TO HONG KONG AND WORRIES ABOUT HIGHER INTEREST RATES IN TAIPEI THE MARKET SLUMPED 11 AMID TALK OF POSSIBLE US TRADE SANCTIONS ON CHINA AND THE US ADMINISTRATION'S POLITICAL PROBLEMS TURNOVER WAS LIGHT AS MANY INVESTORS SNIFFED FOR SOME DIRECTION 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 9403160145 940316 MARKETING & MEDIA CAPITAL CITIES ASKS HOLDERS TO APPROVE 10FOR1 STOCK SPLIT BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAPITAL CITIES/ABC INC SAID IT WILL ASK SHAREHOLDERS TO APPROVE A 10FOR1 STOCK SPLIT MAKING SHARES OF ITS COMMON AFFORDABLE TO MORE BUYERS SHARES OF THE BROADCASTING AND PUBLISHING COMPANY CLOSED YESTERDAY AT 70875 UP 1175 OR 17 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE SPLIT WILL BE DECLARED AT A MAY 19 BOARD MEETING PENDING SHAREHOLDER APPROVAL BEFORE THE SPLIT COMMON SHARES OF CAPITAL CITIES WERE THE SECONDMOSTEXPENSIVE ON THE BIG BOARD ONLY BERKSHIRE HATHAWAY INC WHOSE CHAIRMAN IS WARREN BUFFETT AND WHICH OWNS 13 OF THE 153 MILLION CAPITAL CITIES SHARES OUTSTANDING IS MORE EXPENSIVE BERKSHIRE HATHAWAY CLOSED YESTERDAY AT 15800 A SHARE UP 150 MANY WALL STREET INVESTORS AND SOME EXECUTIVES INSIDE CAPITAL CITIES HAVE BEEN PUSHING FOR THE SPLIT FOR SOME TIME AS A WAY TO MAKE THE STOCK AVAILABLE TO MORE PEOPLE INCLUDING COMPANY EMPLOYEES ANALYSTS COULDN'T AGREE ON THE MOVE'S BROADER IMPLICATIONS IN A STOCK SPLIT SHARES TEND TO RISE WHICH WOULD INCREASE THE COMPANY'S VALUE SOME ARGUED THAT WOULD MAKE A HOSTILE TAKEOVER LESS LIKELY BY INCREASING THE COMPANY'S VALUE WHILE OTHERS SAID IT SIGNALED IT IS LOOKING TO SELL AND WANTS TO GET MORE FOR ITS SHARES YET ANOTHER THEORY CIRCULATING WAS THAT IF THE COMPANY WAS WORTH MORE IT COULD AFFORD A LARGER ACQUISITION COMPANY MANAGEMENT SAID IN LATE 1992 THAT IT WOULD CONSIDER AN ACQUISITION OF AS MUCH AS 8 BILLION BUT NEVER COMPLETED SUCH A TRANSACTION BECAUSE IT COULDN'T FIND ANYTHING WITH AN ACCEPTABLE PRICE INSTEAD IN A DUTCH AUCTION TENDER OFFER LAST DECEMBER THE COMPANY SPENT ABOUT 690 MILLION AND BOUGHT BACK 11 MILLION SHARES AT ABOUT 630 A SHARE ONE MILLION OF THOSE SHARES WERE FROM BERKSHIRE HATHAWAY WHICH REDUCED ITS HOLDINGS TO TWO MILLION SHARES CAPITAL CITIES HAD HOPED TO REPURCHASE AS MANY AS TWO MILLION SHARES BUT INVESTORS HELD BACK BETTING THAT THE STOCK WOULD GO HIGHER AS INDEED IT DID THE COMPANY SAID IT WOULD CONTINUE TO BUY BACK SHARES ON THE OPEN MARKET IN JANUARY IT REPURCHASED 45000 SHARES AT PRICES LOWER THAN 630 A SHARE THE SPLIT WILL MAKE IT EASIER FOR IT TO CONTINUE TO BUY BACK STOCK WITH MORE SHARES OUTSTANDING 9403160143 940316 TECHNOLOGY & HEALTH GUIDELINES FOR TREATING ANGINA OFFER MORE CONSISTENCY FOR CARDIAC CONDITION BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A US PANEL ISSUED NEW GUIDELINES AIMED AT IMPROVING TREATMENT FOR PATIENTS WHO SUFFER SEVERE CHEST PAIN THAT OFTEN LEADS TO HEART ATTACKS THE GUIDELINES PROVIDE DOCTORS WITH INFORMATION TO HELP THEM QUICKLY DETERMINE WHICH PATIENTS ARE AT LOW RISK OF A HEART ATTACK AND CAN BE TREATED AS OUTPATIENTS AND WHICH ARE MORE SERIOUSLY SICK AND THUS NEED HOSPITAL CARE WHILE THE GUIDELINES DON'T CALL FOR A MAJOR DEPARTURE FROM CURRENT PRACTICE THEY DO URGE LESS RELIANCE ON CERTAIN DRUGS AND COSTLY INVASIVE TESTS AS FIRSTLINE THERAPY IF WIDELY ADOPTED BY CARDIOLOGISTS AND PRIMARYCARE DOCTORS THEY COULD REDUCE WIDE VARIATION IN HOW PATIENTS WITH UNSTABLE ANGINA AS THE CONDITION IS CALLED ARE TREATED IN US HOSPITALS THE MAIN CHANGE THEY WILL BRING TO AMERICAN HEALTH CARE IS CONSISTENCY SAID ROBERT JONES A CARDIAC SURGEON AT DUKE UNIVERSITY MEDICAL CENTER AND A LEADER OF THE GUIDELINE PROJECT UNSTABLE ANGINA IS A GRAYZONE MEDICAL PROBLEM THAT SITS BETWEEN HEART ATTACKS AND MILD CHEST PAIN HE SAID IT LEADS TO OVER 500000 HOSPITAL ADMISSIONS YEARLY YOU'D RATHER HAVE SOMEBODY IN THE HOSPITAL THAT DOESN'T NEED TO BE THAN HAVE A PATIENT GO HOME AND HAVE A HEART ATTACK DR JONES SAID BUT THAT TENDS TO DRIVE A LOT OF EXTRA UTILIZATION THE GUIDELINES ARE INTENDED TO PROVIDE SOME REASSURANCE AND STRUCTURE AND ENCOURAGE MORE APPROPRIATE USE OF RESOURCES HE ADDED THEY ARE BEING PUBLISHED BY THE US AGENCY FOR HEALTH CARE POLICY AND RESEARCH WHICH FUNDED THEIR DEVELOPMENT ALONG WITH THE NATIONAL HEART LUNG AND BLOOD INSTITUTE THEY WERE PRESENTED IN ATLANTA AT THE ANNUAL MEETING OF THE AMERICAN COLLEGE OF CARDIOLOGY ONE OF SEVERAL PROFESSIONAL ORGANIZATIONS THAT ENDORSED THEM THE GUIDELINES AREN'T INTENDED TO BE A COOKBOOK OF RULES SAID JARRETT CLINTON ADMINISTRATOR OF THE AGENCY NOR ARE THEY INTENDED SPECIFICALLY TO REDUCE HEALTH COSTS WE'RE TALKING ABOUT IMPROVING VALUE FOR THE DOLLAR SPENT HE SAID AND IMPROVING THE ABILITY OF DOCTORS AND PATIENTS TO MAKE DECISIONS ABOUT CARE AMONG THE RECOMMENDATIONS FOR UNSTABLE ANGINA PEOPLE WHO SUFFER SEVERE CHEST PAIN THAT LASTS MORE THAN 20 MINUTES SHOULD GET TO A HOSPITAL WITHIN 60 MINUTES BY TAKING A PATIENT HISTORY GIVING A PHYSICAL AND ELECTROCARDIOGRAM DOCTORS CAN USUALLY DETERMINE WHO IS AT SIGNIFICANT RISK OF A HEART ATTACK OR OTHER CARDIAC OCCURRENCE PATIENTS AT LOW RISK GENERALLY NEED NOT BE HOSPITALIZED DRUGS INCLUDING ASPIRIN HEPARIN NITROGLYCERIN AND BETA BLOCKERS SHOULD BE ADMINISTERED TO MEDIUM AND HIGHRISK PATIENTS BUT A CLASS OF DRUGS KNOWN AS CALCIUM CHANNEL BLOCKERS ISN'T GENERALLY RECOMMENDED AS FIRSTLINE THERAPY CLOTBUSTING DRUGS AREN'T INDICATED FOR UNSTABLE ANGINA 9403160142 940316 LEISURE & ARTS THE GALLERY THE SUN RISES FOR A FORGOTTEN VANGUARD BY MARGARET SCOTT YOKOHAMA JAPAN AT THE YOKOHAMA MUSEUM OF ART AN ENORMOUS NEON RISING SUN FLAG FLASHES AT VISITORS AND BECKONS THEM INTO JAPANESE ART AFTER 1945 SCREAM AGAINST THE SKY INSIDE THE SHOW'S DECOROUS GALLERIES DESIGNED BY THE PATRIARCH OF JAPANESE ARCHITECTURE KENZO TANGE THERE IS COOL BEAUTY AND EVEN EXUBERANCE BUT THERE IS ALSO STUDIED GROTESQUENESS A SCULPTURE OF A DECOMPOSING HEAD IN A CAGE AND MAD EROTICA A VIDEO OF A DANCE CALLED REVOLT OF THE FLESH ALTOGETHER THERE ARE 212 WORKS BY SOME 70 ARTISTS CHOSEN TO REPRESENT THE AVANTGARDE TRADITION IN CONTEMPORARY JAPANESE ART IT'S DIFFICULT TO SAY WHAT IS MORE COMPELLING ABOUT THE SHOW THE AUDACITY OF ITS THEME OR THE ARTWORKS THEMSELVES EITHER WAY SCREAM AGAINST THE SKY UP TILL MARCH 30 IS A RADICAL AND PROVOCATIVE STEP FOR A JAPANESE MUSEUM THE FIRST SURVEY OF AVANTGARDE ART CREATED BY JAPANESE ARTISTS SINCE THE WAR IN ALL THOSE YEARS THE ART ESTABLISHMENT HERE HAS MOSTLY IGNORED NATIVE VANGUARD ART OR ZEN'EI BIJUTSU WHILE THE ART WORLD IN THE WEST HAS LARGELY DISMISSED JAPANESE CONTEMPORARY ART AS DERIVATIVE OF NEW YORK AND PARIS SCREAM AGAINST THE SKY DEFIES BOTH THESE ATTITUDES MORE THAN THAT THE CURATOR DOING THE DEFYING IS A NEW YORKER ALEXANDRA MUNROE MS MUNROE STEEPED IN JAPANESE ART HISTORY AS WELL AS FASHIONABLE MODERNIST CULTURAL CRITIQUES HAS MORE ON HER MIND THAN SIMPLY STORMING THE CANON OF EUROCENTRISM THE MOST RADICAL ASPECT OF THIS SHOW SHE SAYS IS THAT IT ATTEMPTS FOR THE FIRST TIME TO PUT THIS ART INTO A NARRATIVE IT'S THE STORY OF REBELLIOUS ART IN JAPAN AND WHAT IT HAS TO SAY ABOUT THE PERENNIAL DEBATE OVER IDENTITY WHAT DOES IT MEANS TO BE MODERN AND JAPANESE MS MUNROE NOW 36 SAYS SHE WAS DRAWN TO HER SUBJECT IN THE LATE 1980S WHEN SHE DISCOVERED THAT NOT A SINGLE BOOK HAD BEEN WRITTEN IN EITHER JAPANESE OR ENGLISH ON THE STORY'S CHARACTERS WHOM SHE DESCRIBES AS ARTISTS ON STRIKE AGAINST SOCIETY IN 1991 DETERMINED TO WRITE THE BOOK MS MUNROE WAS INVITED TO BE A GUEST CURATOR AT THE YOKOHAMA MUSEUM EVENTUALLY THE BOOK IDEA EXPANDED TO INCLUDE THIS SHOW AND FOR THE PAST TWO YEARS MS MUNROE WITH A GREAT DEAL OF HELP FROM THE MUSEUM'S BROODING ASSISTANT CURATOR TARO AMANO HAS ASSEMBLED HER STORYLINE PIECE BY PIECE THE EXHIBITION IS ORGANIZED SO THAT YOU LITERALLY WALK THROUGH MS MUNROE'S NARRATIVE STARTING WITH GUTAI ONE OF THE FIRST MANIFESTOCARRYING ACTIONPAINTING ART GROUPS OF THE 1950S AND ENDING WITH YUKINORI YANAGI'S 1992 NEON FLAG CALLED HINOMARU ILLUMINATON THE IDEA IS TO WIND UP WITH A NEW VERSION OF JAPAN'S TRIBAL NARRATIVE WHICH USUALLY GOES LIKE THIS SINCE IT OPENED TO THE OUTSIDE WORLD JAPAN HAS SWUNG WILDLY FROM UTTERLY IDENTIFYING WITH THE WEST TO OUTRIGHT NATIVIST REJECTION OF ALL THINGS WESTERN THE PLOT OF SCREAM AGAINST THE SKY IS MUCH MORE COMPLICATED MANY OF THESE ARTISTS MS MUNROE WRITES IN THE SHOW'S SUPERB CATALOGUE REBELLED AGAINST THE NOTION OF EAST VS WEST OR A PURE JAPAN VS US SOME INSISTED THEY WERE INTERNATIONAL SOME RESENTED THE SUPPOSED INTERNATIONAL ART WORLD AS ANOTHER FORM OF WEST IS BESTISM SOME LOOKED TO JAPANESE ART FORMS OF THE PAST AS A WAY OF PROTESTING THE PRESENT SOME RETREATED INTO A WORLD OF IMAGINATION SOMETIMES METAPHYSICAL AND SOMETIMES VIOLENT IT'S NOT THAT THEY WERE CREATING JAPANESE ART OUT OF SOME VAGUE JAPANESENESS INSTEAD THE SHOW'S POINT IS THAT THESE ARTISTS' EXPERIENCE OF MODERN JAPAN IS CRUCIAL TO UNDERSTANDING THEIR ART IN THE 1950S FOR INSTANCE THE ARTISTS WHO CALLED THEMSELVES GUTAI LIKE MANY JAPANESE WERE ENTHRALLED WITH UNCLE SAM HOLLYWOOD AND DEMOKURASHEE THEY STAGED ART EVENTS DESCRIBED AS RITES TO STOMP OUT THE IMPERIAL PAST THE SHOW INCLUDES ATSUKO TANAKA'S REMARKABLE COSTUMESCULPTURE CALLED ELECTRIC DRESS MADE OF BRIGHTLY PAINTED LIGHT BULBS AND DANGLING ELECTRIC CHORDS THEN AS THOUGH THEY WERE RUNNING ALONGSIDE THE INCREASINGLY RADICAL STUDENT POLITICS IN JAPAN MANY ARTISTS RETREATED UNDERGROUND INTO A COUNTERCULTURE OF THEIR OWN MAKING IN THE EARLY 1960S MS MUNROE CLAIMS JAPANESE ARTISTS LIKE YOKO ONO WERE LEADERS IN THE CONCEPTUAL ART MOVEMENT THE SHOW'S TITLE COMES FROM A MUSICAL SCORE MS ONO WROTE IN 1961 NEGLECTED BY CRITICS AND MUSEUMS AT HOME MANY AVANTGARDE ARTISTS FLED JAPAN ALTOGETHER OR MORE RECENTLY SUCH ARTISTS AS YASUMASA MORIMURA HAVE FOUND SUCCESS ABROAD PRECISELY BECAUSE THEY ARE JAPANESE FROM THE OBSESSIONAL PHALLUSFILLED SCULPTURE OF YAYOI KUSAMA TO THE ENORMOUS PAINTINGS OF LEE UFAN AND NAOTO NAKAGAWA TO THE RECENT MEDITATIONS ON NATIONALITY BY KODAI NAKAHARA MS MUNROE'S SHOW COVERS A HUGE AMOUNT OF GROUND BOTH AESTHETIC AND SOCIOLOGICAL ASSEMBLING IT WASN'T EASY ONE EXAMPLE OF HOW COMPLICATED AND CONTROVERSIAL IT IS TO TRY TO TELL THE STORY OF CONTEMPORARY JAPANESE AVANTGARDE ART IS THE TROUBLE MS MUNROE HAD WITH ON KAWARA ORIGINALLY SCREAM AGAINST THE SKY INCLUDED A WELLKNOWN PIECE OF HIS CONTAINING 28 POSTCARDS OF JAPAN THAT HAD BEEN MAILED TO NEW YORK BUT MR KAWARA BLOCKED THE LOAN IN PLACE OF HIS WORK MS MUNROE HAS MOUNTED A PRINTED STATEMENT EXPLAINING THAT HE WILL NOT PARTICIPATE IN ANY SHOW OF JAPANESE ARTISTS FOR MS MUNROE THIS INCIDENT EXEMPLIFIES MANY OF THE TENSIONS OF BEING A MODERN JAPANESE ARTIST KAWARA DOESN'T THINK THAT POSTWAR JAPANESE ART EXISTS MS MUNROE SAYS HE WOULD NEVER SAY THIS BUT I THINK IT'S CULTURAL INSECURITY IT'S THE SAME THING AS SAYING THAT JAPANESE ARTISTS' VERSION OF MODERNISM ISN'T IMPORTANT ENOUGH MUNROE'S REBUTTAL IS SCREAM AGAINST THE SKY THE SHOW WILL TRAVEL TO THE GUGGENHEIM MUSEUM'S SOHO BRANCH IN NEW YORK IN SEPTEMBER AND TO THE NEW SAN FRANCISCO MUSEUM OF ART NEXT YEAR MS SCOTT IS A TOKYOBASED JOURNALIST 9403160141 940316 INTERNATIONAL ATLE TO BUY STAKE IN IBM UNIT STOCKHOLM SWEDISH VENTURECAPITAL COMPANY ATLE FOERVALTNINGS AB SAID IT AGREED IN PRINCIPLE WITH IBM SVENSKA AB THE SWEDISH SUBSIDIARY OF INTERNATIONAL BUSINESS MACHINES CORP TO ACQUIRE A 65 STAKE IN JAERFAELLA INDUSTRY COMPETENCE CENTER AB TERMS WEREN'T DISCLOSED IBM SVENSKA WILL RETAIN THE REMAINING 35 STAKE IN JAERFAELLA ICC A MANUFACTURER OF COMPUTERRELATED PRINTERS SAID ATLE JAERFAELLA ICC'S SALES ARE EXPECTED TO TOTAL ABOUT ONE BILLION KRONOR 1274 MILLION IN 1994 ATLE SAID 9403160140 940316 GE OFFER FOR KEMPER MARKS PUSH INTO PERSONAL FINANCE BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL GE CAPITAL CORP'S UNFRIENDLY TAKEOVER BID FOR KEMPER CORP LEAVES NO DOUBT THE FINANCIALSERVICES GIANT WANTS TO BECOME A MAJOR PLAYER IN THE BOOMING MARKET FOR MUTUAL FUNDS AND RETIREMENT PRODUCTS GE CAPITAL A HIGHLY PROFITABLE UNIT OF GENERAL ELECTRIC CO IS A DOMINANT FORCE IN THE BEHINDTHESCENES WORLD OF CORPORATE BANKING AND IS THE BIGGEST NONBANKFINANCE COMPANY IN THE US NOW IT IS COMING OUT OF THE SHADOWS TO TAP INTO THE GROWING PERSONALFINANCE MARKET KEMPER A MONEYMANAGEMENT BROKERAGE AND INSURANCE COMPANY CONTINUED TO CRITICIZE GE CAPITAL'S BID OF 55 A SHARE OR 22 BILLION CALLING IT A SHOCKING ASSAULT THAT IS NOT IN THE BEST INTEREST OF OUR SHAREHOLDERS BUT TAKEOVER EXPERTS SAID GE HAS THE UPPER HAND IN WHAT COULD BECOME A PROTRACTED BATTLE GE HAS ALREADY INDICATED IT WOULD CONSIDER SWEETENING ITS BID IF IT OBTAINS ADDITIONAL FINANCIAL INFORMATION FROM KEMPER ON THE NEW YORK STOCK EXCHANGE KEMPER CLIMBED 475 TO 6175 A SHARE AFTER ROCKETING MORE THAN 16 ON MONDAY WHEN THE OFFER WAS DISCLOSED THE SURGE INDICATED THAT INVESTORS EXPECT GE TO SWEETEN ITS BID OR TO BE OUTBID BY ANOTHER FIRM GE EDGED DOWN 375 CENTS A SHARE TO 104875 ON THE BIG BOARD FOR GE CAPITAL THE PUSH INTO PERSONAL FINANCE IS A RETURN TO ITS ROOTS AS A PROVIDER OF FINANCIAL SERVICES EXCEPT THIS TIME IT'S ON THE OTHER SIDE OF A HOUSEHOLD'S BALANCE SHEET RATHER THAN LENDING MONEY TO CONSUMERS TO BUY A GE REFRIGERATOR WHICH WAS THE UNIT'S ORIGINAL PURPOSE IT'S GATHERING ASSETS TO MANAGE EXPERTS SAY GE CAPITAL HAS DECIDED AS HAVE MANY BANKS AND OTHER FINANCIAL INSTITUTIONS THAT THE FUTURE OF FINANCE ISN'T SO MUCH LENDING MONEY AS MANAGING IT OTHER CORPORATE BANKING GIANTS SUCH AS BANKERS TRUST NEW YORK CORP ARE TRYING TO MUSCLE INTO THE WORLD OF PERSONALFINANCIAL MANAGEMENT GE CAPITAL'S BID FOR KEMPER IS ONE SOLUTION TO AN ENVIABLE PROBLEM WHAT TO DO WITH THE NEARLY 2 BILLION IN ANNUAL PROFIT THAT GE CAPITAL PRODUCES SOME OF THAT GOES TO GE CORPORATE HEADQUARTERS BUT GE CAPITAL IS INTENT ON USING SOME OF IT TO BUILD A PERSONALFINANCE DIVISION SOURCES SAY THAT WHEN GE CAPITAL CHAIRMAN GARY WENDT WENT TO CHICAGO NEARLY TWO MONTHS AGO TO MEET WITH KEMPER CHAIRMAN DAVIS MATHIS HE HAD COME TO THE REALIZATION THAT BUILDING A PERSONALFINANCE COMPANY FROM THE GROUND UP WOULD BE A STRUGGLE BUT THAT HAS RARELY STOPPED GE BEFORE IT IS A VORACIOUS ACQUIRER OF COMPANIES IT SPENT AROUND 1 BILLION LAST YEAR BUYING TWO COMPANIES THAT SELL ANNUITY PRODUCTS MR WENDT'S VISIT CAME SIX WEEKS AFTER MELLON BANK CORP AGREED TO BUY DREYFUS CORP FOR NEARLY 19 BILLION KEMPER WOULD BE THE FLAGSHIP OF OUR MAJOR THRUST IN THE ASSETMANAGEMENT BUSINESS GE CHAIRMAN JOHN F WELCH SAID IN A LETTER TO MR MATHIS WE ARE ABLE TO COMMIT NEW CAPITAL TO GROWING ASSET MANAGEMENT UNDER THE KEMPER BANNER BY PUBLICLY TAKING ITS TAKEOVER BID OVER MANAGEMENT'S HEAD TO KEMPER'S BOARD AND STOCKHOLDERS GE CAPITAL HAS MADE IT CLEAR IT WON'T WALK AWAY WITHOUT A FIGHT INDEED AN INDIVIDUAL CLOSE TO GE CAPITAL SAID THE COMPANY LOOKED AT ACQUIRING KEMPER ABOUT A YEAR AGO BUT WAS WARY OF THE COMPANY'S REALESTATE PROBLEMS NOW KEMPER HAS SIGNIFICANTLY CLEANED UP THE MESS AND GE CAPITAL HAS BECOME A MAJOR PLAYER IN MANAGING TROUBLED REAL ESTATE GE AND GE CAPITAL TOGETHER MANAGE ABOUT 75 BILLION IN ASSETS INCLUDING MORE THAN 13 BILLION IN ANNUITIES MANAGED BY GNA CORP ADDING KEMPER'S 70 BILLION WOULD VAULT GE INTO ONE OF THE BIGGEST MONEYMANAGEMENT FIRMS IN THE US BUT GE HAS HAD LITTLE SUCCESS BUILDING UP ITS MUTUALFUND BUSINESS ON ITS OWN IN EARLY JANUARY GE ANNOUNCED IT WOULD MARKET 401K PLANS TO CORPORATIONS IN A JOINT VENTURE WITH STATE STREET BOSTON CORP IT IS SELLING FIVE MUTUAL FUNDS THAT HAD BEEN AVAILABLE ONLY TO GE EMPLOYEES AND MANAGES ABOUT 56 BILLION WHILE KEMPER MANAGES A MUCH LARGER 475 BILLION IN MUTUALFUND ASSETS THAT FIGURE HAS BASICALLY BEEN UNCHANGED FOR THE PAST TWO YEARS DESPITE THE ENORMOUS GROWTH IN MUTUALFUND ASSETS THE KEMPER SPOKESWOMAN ATTRIBUTED THE LACK OF GROWTH TO INCREASED COMPETITION IT'S EASY TO SEE WHY GE WOULD ACQUIRE RATHER THAN BUILD THE COST OF ADDING A NEW ACCOUNT COULD BE UPWARD OF 1000 FOR A COMPANY THAT MANAGES 1 BILLION BUT FOR MANAGERS WHO OVERSEE 100 BILLION OR MORE THE FIGURE COULD DROP TO 25 PER NEW ACCOUNT ANALYSTS SAY THE ECONOMIES OF SCALE IN THE MUTUALFUND BUSINESS ARE EXPONENTIAL SAID LOUIS HARVEY PRESIDENT OF DALBAR FINANCIAL SERVICES A BOSTONBASED CONSULTING FIRM NEITHER ONE OF THESE COMPANIES HAVE PARTICIPATED IN THE MUTUALFUND BOOM IN ADDITION TO BOOSTING THE MUTUALFUND SALES GE BELIEVES IT COULD CUT COSTS AT THE OPERATION WHERE TOTAL EXPENSES WERE 065 OF A PERCENTAGE POINT OF ASSETS UNDER MANAGEMENT IN THE FIRST HALF OF 1993 HIGHER THAN MANY OTHER FUND COMPANIES CUTTING COSTS BY 15/100THS OF A PERCENTAGE POINT ON 70 BILLION OF ASSETS WOULD YIELD AN EXTRA 100 MILLION IN ANNUAL PRETAX PROFITS A PERSON CLOSE TO GE SAID THERE ARE ALSO POTENTIAL SYNERGIES IN THE ANNUITY BUSINESS GNA IS ONE OF THE LARGEST THIRDPARTY PROVIDERS OF ANNUITY PRODUCTS TO BANKS AND KEMPER'S INVEST FINANCIAL CORP IS ANOTHER LEADER IN THIRDPARTY INVESTMENT SALES THERE COULD ALSO BE SYNERGIES WITH GE AFFILIATE KIDDER PEABODY & CO WHICH IS A MAJOR PLAYER IN SYNDICATING CLOSEDEND MUTUAL FUNDS KIDDER FOR INSTANCE RECENTLY SOLD A 1 BILLION CLOSEDEND FUND THAT WILL BE MANAGED BY ALLIANCE CAPITAL MANAGEMENT IF COMPLETED THE ADDITION OF KEMPER'S ASSETMANAGEMENT AND ANNUITY OPERATIONS WOULD PROVIDE GECC WITH A SOLID PLATFORM FOR GROWTH IN THE SAVINGSPRODUCT INDUSTRY STANDARD & POOR'S CORP SAID IN CONFIRMING THE COMPANY'S TRIPLEA CREDIT RATING THE RATING AGENCY SAID AN ATTEMPT BY KEMPER TO MAINTAIN ITS INDEPENDENCE COULD HAVE A HARMFUL EFFECT ON ITS BALANCE SHEET AND CREDIT RATING IT IS ALSO GE'S MODUS OPERANDI TO BUY COMPANIES AT WHAT MIGHT BE CONSIDERED A VULNERABLE STAGE AFTER THREE YEARS OF CLEANING UP KEMPER INCLUDING TAKING NEARLY 850 MILLION IN WRITEDOWNS ON ITS 25 BILLION IN REALESTATE ASSETS KEMPER IS BEGINNING TO TURN THE CORNER ONE YEAR AFTER GE CAPITAL FIRST LOOKED AT KEMPER THE PORTFOLIO APPEARS TO BE IN BETTER SHAPE AND WAS WRITTEN DOWN TO ABOUT 40 OF ORIGINAL FACE VALUE AT THE SAME TIME GE CAPITAL HAS BECOME A MAJOR PLAYER IN MANAGING TROUBLED REALESTATE HOLDINGS KEMPER IS JUST EMERGING FROM A THREEYEAR BATTLE SAID SAMUEL LISS A SECURITIES ANALYST AT SALOMON BROTHERS WHO HAS BEEN BULLISH ON THE STOCK OPERATING EARNINGS ARE BECOMING MORE VISIBLE BUT IT'S STILL AT A VULNERABLE INFLECTION POINT THAT'S JUST WHERE GE LIKES TO BUY PEOPLE WHO HAVE FOLLOWED THE COMPANY'S ACTIONS SAY LAST YEAR GE CAPITAL SWOOPED IN AND RECEIVED AN OPTION TO PURCHASE GPA GROUP PLC JUST AS THE IRISH AIRCRAFTLEASING COMPANY FACED A BRUSH WITH FINANCIAL PERIL ASIDE FROM CONVINCING KEMPER'S BOARD TO ACCEPT THE OFFER GE CAPITAL COULD FACE REGULATORY HURDLES THAT COULD DELAY ITS EFFORTS TO TAKE OVER THE COMPANY THE CONSTRAINTS COULD GIVE KEMPER ENOUGH TIME TO FIND ANOTHER BUYER BUT DEALMAKERS SAY IT'S OBVIOUS THE COMPANY IS NOW IN PLAY TIME IS THEIR WORST ENEMY SAID ONE INVESTMENT BANKER IN THIS CASE KEMPER WILL NO DOUBT HAVE PLENTY OF TIME TO LOOK AT ALTERNATIVES TAKEOVER EXPERTS BELIEVE ANOTHER INSURANCE COMPANY COULD BE AN ATTRACTIVE WHITE KNIGHT BUT SAY IT COULD BE DIFFICULT COMPETING WITH GE CAPITAL BANKS WOULD BE AN OBVIOUS CANDIDATE BUT THEY ARE PROHIBITED FROM UNDERWRITING INSURANCE PRODUCTS UNLIKE THE ACQUISITION OF INDUSTRIAL COMPANIES TAKEOVERS IN INSURANCE AND BANKING MUST RECEIVE APPROVAL FROM THE PROPER REGULATORY AGENCIES IN THIS CASE GE CAPITAL NEEDS PERMISSION FROM THE ILLINOIS DEPARTMENT OF INSURANCE IN PREVIOUS CASES SUCH AS BAT'S 52 BILLION ACQUISITION OF FARMERS GROUP IT TOOK NEARLY ONE YEAR TO SEEK APPROVAL IN MANY STATES AMID OPPOSITION FROM FARMERS BUT EVENTUALLY BA T WON OVER BOTH MANAGEMENT AND THE STATEREGULATORY BOARDS ALTHOUGH IT HAD TO SWEETEN ITS BID GE WOULD ONLY NEED APPROVAL IN ILLINOIS WHERE KEMPER IS DOMICILED LAWYERS SAY ARTHUR DUTCHER DEPUTY DIRECTOR OF THE FINANCIAL REGULATORY DIVISION OF THE ILLINOIS DEPARTMENT OF INSURANCE SAID REGULATORY APPROVAL IS NOT AN INSURMOUNTABLE TASK FROM THE REGULATOR'S PERSPECTIVE AS LONG AS GE CAPITAL ABIDES BY STATEINSURANCE RULES 9403160139 940316 LETTERS TO THE EDITOR SOCIAL STUDIES PROGRAM IS BIG STEP BACKWARD IN HIS MARCH 1 EDITORIALPAGE ARTICLE TRIUMPH OF TEXTBOOK TRENDINESS GILBERT T SEWALL CHARACTERIZES THE LATEST EDITION OF A CLASSIC AMERICAN HISTORY TEXT TODD AND CURTI'S THE AMERICAN NATION AS A BIG STEP BACKWARD A CASE OF DUMBING DOWN' AND REVISIONIST FOLLY IN SEARCH OF A LARGER AUDIENCE MR SEWALL SHOWS THAT THE TEXT'S ALLEGIANCE IS TO MULTICULTURALISM AND POLITICAL CORRECTNESS NOT TO HISTORICAL FACT THE DISTURBING TRENDS IN SOCIAL STUDIES PUBLISHING TODAY AS HE PUTS IT HAVE A SAD PARALLEL IN SOCIAL STUDIES CURRICULUM DEVELOPMENT IN OHIO MANY OHIOANS WHO HAVE READ THE NOV 2 1993 DRAFT OF A MODEL COMPETENCYBASED SOCIAL STUDIES CURRICULUM DEVELOPED BY THE STATE BOARD OF EDUCATION AND BY THE OHIO DEPARTMENT OF EDUCATION WILL RECOGNIZE THE SAME INFLUENCE OF PCTHINK AND THE SAME ABSENCE OF DEPENDABLE FACTUAL CONTENT THAT SEWALL FOUND IN TODD AND CURTI IN THE OHIO SOCIAL STUDIES CURRICULUM NOW BEING CONSIDERED FOR ADOPTION AS A MODEL FOR ALL OHIO PUBLIC SCHOOLS CONTENT IS REPLACED WITH VERY BROADLY DEFINED PERFORMANCE GOALS SUCH AS THE LEARNER WILL DEMONSTRATE CURIOSITY OPENMINDEDNESS SKEPTICISM AND ETHICAL BEHAVIOR IN INQUIRY BASED UPON THE SOCIAL STUDIES FROM GRADES K THROUGH 12 THE CURRICULUM IS ORGANIZED AROUND SIX STRANDS OR CONCEPTS THAT WILL BE ADDRESSED EACH YEAR INCLUDING PLURALISTIC SOCIETY RESOURCE ALLOCATION AND GLOBAL CONNECTIONS THESE CONCEPTS/STRANDS ARE DESIGNED TO DEVELOP THE ABILITY TO MAKE INFORMED AND REASONED DECISIONS FOR THE PUBLIC GOOD AS CITIZENS OF A CULTURALLY DIVERSE DEMOCRATIC SOCIETY IN AN INTERDEPENDENT WORLD OF FINITE RESOURCES AS A CONSERVATIVE AND TAXPAYER I PREFER THAT OUR KINDERGARTENERS NOT BE TAUGHT THAT THE PROPER ROLE OF PERSONS IN AUTHORITY IS TO PROVIDE FAIR DISTRIBUTION OF RESOURCES AND OPPORTUNITIES BUT RATHER TO KNOW WHO ABRAHAM LINCOLN WAS TO RECOGNIZE OUR CURRENT PRESIDENT AND TO FIND OHIO ON THE MAP I BELIEVE THE MAJORITY OF PARENTS AND BUSINESS PEOPLE WOULD AGREE IN DESIRING A SOLID ACADEMIC FACTBASED CURRICULUM IN SOCIAL STUDIES YET IT IS DIFFICULT FOR PARENTS TO HAVE AN IMPACT ON UNRESPONSIVE BUREAUCRACIES LIKE THE OHIO DEPARTMENT OF EDUCATION AS A REPUBLICAN IT IS ALSO DIFFICULT FOR ME TO UNDERSTAND WHY GOV GEORGE VOINOVICH APPEARS TO BE SUPPORTING THE EDUCATION ESTABLISHMENT RESPONSIBLE FOR THIS BIG STEP BACKWARD IN SOCIAL STUDIES EDUCATION 9403160138 940316 SPORTS MAJOR LEAGUE WHAT PRO SOCCER HOPES TO SCORE ON AMERICAN TURF BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL FOR US SOCCER TWO HUGE GOALS ARE IN SIGHT AS NINE AMERICAN CITIES GEAR UP TO HOST WORLD CUP GAMES THIS SUMMER SOCCER ORGANIZERS ARE ASSEMBLING 12 PROFESSIONAL TEAMS TO BEGIN PLAYING THEIR FIRST SEASON IN THE US NEXT YEAR WITH A CRESCENDO ON THE WORLD CUP SIDE WE HAVE THE EXACT RIGHT MOOD SAYS ALAN I ROTHENBERG WHO HEADS BOTH WORLD CUP USA AND MAJOR LEAGUE SOCCER INC WHICH SHARE OFFICES IN LOS ANGELES FIFA THE INTERNATIONAL SOCCER FEDERATION BASED IN SWITZERLAND GRANTED THE US THE 1994 WORLD CUP GAMES ON THE CONDITION THAT THE US TRY TO LAUNCH A PROFESSIONAL LEAGUE YESTERDAY MAJOR LEAGUE SOCCER ORGANIZERS ANNOUNCED THAT ESPN THE CABLE SPORTS NETWORK AIRING MOST OF THE 52 WORLD CUP MATCHES THIS YEAR WILL BROADCAST PROFESSIONAL MATCHES THROUGH NEXT YEAR'S SIXMONTH SEASON ABC SPORTS WOULD TELEVISE THE LEAGUE'S CHAMPIONSHIP GAME TERMS WEREN'T DISCLOSED MAJOR LEAGUE SOCCER WILL SERVE AS SOMETHING OF AN EXPERIMENT IN THE WORLD OF BIGTIME US SPORTS IT WILL BE OWNED BY A SINGLE ENTITY AND OPERATE VIA FRANCHISES THAT MEANS NO VOLATILE INDIVIDUAL TEAM OWNERS AND NO PRIMADONNA ATHLETES SPARKING HUGE BIDDING WARS WE'RE GOING TO AVOID THE PROBLEMS OTHER LEAGUES HAVE RUN INTO WITH OVERLY ENTREPRENEURIAL OWNERS SAYS HARLEY FRANKEL A HARVARD BUSINESS SCHOOL GRADUATE WHO RECENTLY CAME TO MAJOR LEAGUE SOCCER FROM THE NATIONAL BASKETBALL ASSOCIATION AMONG MR FRANKEL'S PROJECTS IS NEGOTIATING A STRICT TEAMSALARY CAP TO SPARE SOCCER THE EXTRAVAGANT COSTS OF BASEBALL FRANCHISES AREN'T AN ENTIRELY NOVEL IDEA OF COURSE I THINK THE MODEL IS OUT THERE IN BUSINESS MR ROTHENBERG SAYS IT'S MCDONALD'S IT'S BLOCKBUSTER CENTRAL OWNERSHIP CONTROLS THE FRANCHISES ALLOWING A UNIFIED APPROACH IN MARKETING SPONSORSHIPS AND PLAYER RECRUITMENT A SELECT GROUP OF LIMITED PARTNERS INCLUDING SPONSORING COMPANIES IS BEING ASSEMBLED TO RAISE 100 MILLION TO CAPITALIZE THE VENTURE BY MAY 15 LOCAL ORGANIZERS MUST SUBMIT BIDS FOR FRANCHISES PROVING THEIR COMMUNITIES' INTEREST IN SOCCER BY COLLECTING DEPOSITS ON AT LEAST 10000 SEASONTICKET ORDERS THE DEPOSIT TO HOLD A SEAT FOR A 14GAME HOME SEASON IS 75 FOR ADULTS 35 FOR CHILDREN SINGLEGAME TICKETS ARE EXPECTED TO COST AROUND 12 CONVERTED FOOTBALL OR BASEBALL FIELDS MAY BE USED IN THE FIRST YEAR AS LONG AS PLAY CAN BE ON REAL GRASS BUT THE SOCCER ORGANIZATION ENVISIONS LONGERTERM CONSTRUCTION OF 30 MILLION SOCCER STADIUMS THAT SEAT 20000 TO 30000 WHILE THE US SOCCER ORGANIZATION EXPECTS TO HAVE TEAMS IN MANY OF THE BIG SPORTS TOWNS PREPARING FOR CUP MATCHES IN JUNE NEW YORK CHICAGO WASHINGTON BOSTON DETROIT DALLAS SAN FRANCISCO ORLANDO FLA AND LOS ANGELES THE LEAGUE COULD BRING CLUBS TO A WHOLE NEW GROUP OF CITIES AMONG THE 30 CITIES ATTENDING JANUARY'S PRELIMINARY BIDDING CONFERENCE IN THE LOS ANGELESAREA FOR EXAMPLE WERE TULSA OKLA AND COLUMBUS OHIO ACCORDING TO THE LEAGUE'S PLAN IT WOULD SEEK TO RECAPTURE US TALENT NOW PLAYING PROFESSIONAL SOCCER ABROAD JOHN HARKES ONE TOP US PLAYER BEING SOUGHT BELIEVES THAT NEARLY ALL THE 30 OR SO OF HIS FELLOW COUNTRYMEN PLAYING OVERSEAS WILL RETURN TO PLAY IN THE US IF IT'S ORGANIZED IN THE PROPER WAY FROM A BUSINESS STRUCTURE WHICH IT IS THERE'S NO REASON IT WOULD FAIL MR HARKES SAYS ALONG WITH THE RECRUITED AMERICANS A TYPICAL PRO SOCCER FRANCHISE WOULD INCLUDE SEVERAL FOREIGN PROS AND OTHER US PLAYERS WITH OLYMPICTEAM OR COLLEGE EXPERIENCE MR ROTHENBERG SAYS ALSO THE LEAGUE HAS THE OFFICIAL CONSENT OF FIFA TO EXPERIMENT WITH ELEMENTS OF THE GAME TO ATTRACT US AUDIENCES AN ENLARGED GOAL FOR EXAMPLE WOULD REDUCE THE NUMBER OF LOWSCORING GAMES A RECURRING COMPLAINT OF US FANS THE NORTH AMERICAN SOCCER LEAGUE THE LAST US FORAY INTO BIGTIME OUTDOOR SOCCER FAILED ALMOST A DECADE AGO AFTER SEVERAL LACKLUSTER YEARS MR ROTHENBERG WHO OWNED THE LEAGUE'S LOS ANGELES AZTECS SAYS HE'S CONVINCED SOCCER WILL SUCCEED THIS TIME IN PART THROUGH THE HARD LESSONS LEARNED FROM THE EARLIER EXPERIENCE AND IN PART BECAUSE OF THE EXPOSURE THE SPORT WILL GET FROM HOSTING THE CUP MATCHES IN THE US NEVERTHELESS SKEPTICISM ABOUNDS ABOUT HOW SOCCER WILL ATTRACT ENOUGH PAYING FANS AND VIEWERS TO BE PROFITABLE RIGHT IN THE MIDDLE OF BASEBALL SEASON IN A PARTICULARLY SCATHING COMMENTARY FOR EXAMPLE USA TODAY COLUMNIST TOM WEIR WROTE THAT HATING SOCCER IS MORE AMERICAN THAN MOM'S APPLE PIE DRIVING A PICKUP OR SPENDING SATURDAY AFTERNOON CHANNELSURFING WITH THE REMOTE CONTROL THE LOCAL JOKE SAYS MR SWEENEY YOU KNOW WHY SO MANY PEOPLE ARE PLAYING SOCCER SO THEY DON'T HAVE TO WATCH IT ENTHUSIASM RUNS HIGHER IN TULSA WHERE CITY COUNCIL ADMINISTRATOR DONALD CANNON CALLS THE 10000 SEASONTICKET DEPOSITS NO PROBLEM IN A STATE THAT HAS LONG BEEN FASCINATED WITH SOCCER THE TULSA ROUGHNECKS WERE ONE OF THE NASL'S MOST SUCCESSFUL FRANCHISES AND TODAY HE SAYS WE HAVE VIRTUALLY EVERY ELEMENT IN THE COMMUNITY INVOLVED IN THE BID PROCESS FOR THE SOCCER LEAGUE FROM GOVERNMENT OFFICIALS AND UNIVERSITIES TO FORMER PRO PLAYERS STILL LIVING THERE JOHN KOSKINEN WHO HEADS WASHINGTON DC'S PROSOCCER EFFORT BELIEVES THE NEW LEAGUE WILL THRIVE NATIONALLY NORMALLY WITH A STARTUP LEAGUE YOU WORRY ABOUT IT FAILING ONCE IT STARTS BECAUSE IT'S UNDERCAPITALIZED OR IT CAN'T COMPLETE ITS SEASON HE SAYS BUT MLS HASN'T BEEN DREAMED UP IN ABSTRACTION PURISTS ELSEWHERE IN THE WORLD WORRY THAT MAJOR LEAGUE SOCCER'S RULE CHANGES LIKE THE GOAL ENLARGEMENT WILL RUIN THE ESSENCE OF SOCCER SUNIL GULATI INVESTIGATING POTENTIAL EXPERIMENTS FOR THE LEAGUE SAYS ANY CHANGES WOULD BE SUBJECTED TO INDEPTH STUDY AND DESIGNED TO BENEFIT THE SPORT BY INCREASING THE NUMBER OF TIMES A FAN GETS OUT OF HIS SEAT BUT SOME EUROPEANS REMAIN UNCONVINCED HUGH MCILVANNEY OF THE TIMES OF LONDON WROTE LAST DECEMBER THAT ANYONE WHO BELIEVES AMERICA'S SOCCER LEAGUE REPRESENTS A TRIUMPHANT SPREADING OF THE TRUE WORD ACROSS A HEATHEN LAND SHOULD BE REMINDED THAT MISSIONARIES HAVE BEEN KNOWN TO GET THEMSELVES EATEN 9403160137 940316 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH FIBER LINK FOR HONG KONG THAILAND VIETNAM PLANNED AMERICAN TELEPHONE & TELEGRAPH CO SAID IT REACHED AGREEMENT WITH OTHER TELECOMMUNICATIONS PROVIDERS TO PARTICIPATE IN CONSTRUCTION OF THE FIRST UNDERSEA FIBEROPTIC CABLE SYSTEM LINKING VIETNAM THAILAND AND HONG KONG THE 3400KILOMETER 2108MILE SYSTEM WILL LINK STATIONS IN SRI RACHA THAILAND VUNG TAU VIETNAM AND HONG KONG'S DEEPWATER BAY THE PACT WAS SIGNED BY REPRESENTATIVES OF THE DIRECTORATE GENERAL OF POSTS AND TELECOMMUNICATIONS OF VIETNAM THE COMMUNICATIONS AUTHORITY OF THAILAND A UNIT OF HONG KONG TELECOMMUNICATIONS LTD A UNIT OF AUSTRALIA'S TELSTRA CORP AT&T AND 14 OTHER TELECOMMUNICATIONS COMPANIES AT&T SAID IT WILL OWN A 2 STAKE IN THE SYSTEM THE PROJECT'S COST WASN'T DISCLOSED 9403160136 940316 BUSINESS BRIEF ALCOA PLANS A CHARGE TOTALING 50 MILLION DUE TO PLANT CLOSING PITTSBURGH ALUMINUM CO OF AMERICA SAID IT WILL TAKE A FIRSTQUARTER CHARGE OF 50 MILLION OR 56 CENTS A SHARE TO SHUT AN ALUMINUM FABRICATING PLANT IN VERNON CALIF NEAR LOS ANGELES THE COMPANY SAID IT TOOK THE ACTION AFTER THE 700 WORKERS AT THE PLANT REJECTED CONCESSIONS THE COMPANY HAD SOUGHT AFTER LESS THAN ONE YEAR HAD ELAPSED ON THE UNION'S THREEYEAR CONTRACT ALCOA SAID THE PROPOSED CUTBACKS WERE NECESSARY TO OFFSET LOSSES CAUSED BY DECLINING BUSINESS AND COMPETITION FROM COMPANIES WITH LOWER OPERATING COSTS ALCOA ALONG WITH THE REST OF THE INDUSTRY HAS SUFFERED AS PRICES HAVE PLUMMETED AMID A WORLDWIDE ALUMINUM OVERSUPPLY FOR THE FOURTH QUARTER OF 1993 ALCOA REPORTED A WIDERTHANEXPECTED LOSS OF 869 MILLION OR 169 MILLION BEFORE A CHARGE IN FEBRUARY THE COMPANY SAID IT WAS CUTTING ABOUT 8 OF ITS DOMESTIC SMELTING CAPACITY AT ITS OPERATIONS IN ROCKDALE TEXAS AND WENATCHEE WASH UNITED AUTO WORKERS UNION LOCAL 808 WHICH REPRESENTS THE WORKERS AT THE CALIFORNIA PLANT DIDN'T RETURN PHONE CALLS SEEKING COMMENT THE PLANT BUILT IN 1938 PRODUCES ALUMINUM FORGINGS AND EXTRUSIONS PRIMARILY FOR THE AEROSPACE INDUSTRY THE UNION'S LABOR AGREEMENT EXPIRES IN JUNE 1996 THE WORKERS EARNED AN AVERAGE OF ABOUT 14 AN HOUR IN WAGES PLUS BENEFITS FOR A PACKAGE TOTALING ABOUT 2313 AN HOUR AN ALCOA SPOKESMAN SAID ALCOA HAS 63400 EMPLOYEES IN THE US AND 160 PLANTS WORLDWIDE ESTIMATES FOR ALCOA'S RESULTS IN THE CURRENT QUARTER VARY WIDELY RANGING FROM A LOSS OF THREE CENTS TO A PROFIT OF 13 CENTS A SHARE EXCLUDING THE ANTICIPATED CHARGE BASED ON NINE ANALYSTS' ESTIMATES COMPILED BY FIRST CALL A UNIT OF THOMSON FINANCIAL SERVICES IN BOSTON IN THE FIRST QUARTER OF 1993 ALCOA REPORTED NET INCOME OF 276 MILLION OR 31 CENTS A SHARE ALCOA CLOSED AT 73625 UP 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9403160135 940316 TCBY'S YOGURT IN MIDDLE EAST LITTLE ROCK ARK TCBY ENTERPRISES INC SAID IT OPENED THREE FRANCHISED FROZENYOGURT STORES IN EGYPT BAHRAIN AND QATAR THE FROZENYOGURT CHAIN SAID IT PLANS AN ADDITIONAL 52 OUTLETS BY 1998 IN BAHRAIN EGYPT KUWAIT QATAR SAUDI ARABIA AND THE UNITED ARAB EMIRATES AND EXPECTS TO HAVE 20 FRANCHISED STORES OPERATING IN THE MIDDLE EAST BY THE END OF THIS YEAR INITIAL SALES OF FROZEN YOGURT IN THE REGION HAVE EXCEEDED ALL EXPECTATIONS SAID HARTSELL WINGFIELD PRESIDENT OF THE COMPANY'S TCBY INTERNATIONAL DIVISION 9403160134 940316 AMERICAN EXPLORATION'S WELL HOUSTON AMERICAN EXPLORATION CO SAID IT COMPLETED A NATURAL GAS WELL THAT WILL INCREASE ITS DAILY GAS PRODUCTION BY ABOUT 10 TO 35 MILLION CUBIC FEET A DAY FROM 32 MILLION CUBIC FEET A DAY THE OIL AND NATURALGAS COMPANY SAID ITS OOSICELAMITCHELL 1 WELL IN THE PERMIAN BASIN OF WEST TEXAS TESTED AT A RATE OF 121 MILLION CUBIC FEET OF GAS A DAY AT DEPTHS BETWEEN 13220 FEET AND 14250 FEET AMERICAN EXPLORATION SAID IT EXPECTS TO PLACE THE WELL ON PRODUCTION MAY 1 AMERICAN EXPLORATION THE OPERATOR HOLDS A 35 WORKING INTEREST IN THE WELL WITH CLOSELY HELD COMPANIES AND PRIVATE INDIVIDUALS HOLDING THE REMAINING 65 9403160133 940316 TECHNOLOGY POLAROID'S NEW SECURITY SYSTEM CAMBRIDGE MASS POLAROID CORP UNVEILED A COMPUTERIZED SECURITYIDENTIFICATION SYSTEM DESIGNED FOR USE WITH MICROSOFT CORP'S WINDOWS PERSONALCOMPUTER OPERATING SOFTWARE THE ELECTRONIC SYSTEM LETS USERS CUSTOMIZE IDENTIFICATION CARDS AND CREATE SECURITY DATABASES POLAROID ALREADY SELLS FILMBASED SECURITY PRODUCTS TO HOSPITALS AIRPORTS GOVERNMENT AGENCIES COLLEGES PRIVATE COMPANIES AND THE MILITARY THE ELECTRONIC SYSTEM CAPTURES PORTRAITS SIGNATURES AND OTHER DATA FOR INSTANT RETRIEVAL AND USE IN ADDITION TO OTHER FEATURES POLAROID SAID 9403160132 940316 S&P DOWNGRADES RATING OUTLOOK OF PRUDENTIAL UNIT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STANDARD & POOR'S CORP KNOCKED DOWN ITS LONGTERM RATING OUTLOOK FOR PRUDENTIAL SECURITIES INC TO NEGATIVE FROM STABLE REFLECTING THE VULNERABILITY OF PRUDENTIAL'S FRANCHISE THE MOVE BY THE BIG CREDITRATING AGENCY UNDERSCORES THE UNCERTAINTY SURROUNDING THE BROKERAGE ARM OF THE PRUDENTIAL INSURANCE CO OF AMERICA AS PART OF AN OCTOBER SETTLEMENT WITH FEDERAL AND STATE REGULATORS PRUDENTIAL HAS SET UP A 330 MILLION REPARATIONS FUND FOR INVESTORS WHO WERE DEFRAUDED INTO BUYING LIMITEDPARTNERSHIPS IN THE 1980S BUT THAT FUND IS OPENENDED MEANING THAT NOBODY KNOWS HOW MUCH PRUDENTIAL EVENTUALLY WILL BE FORCED TO PAY S&P IS CONCERNED THAT ONGOING LEGAL ISSUES WILL CONTINUE TO OVERSHADOW PRUDENTIAL SECURITIES' FUNDAMENTAL OPERATIONS AND UNDERMINE ITS LONGTERM COMPETITIVE POSITION IN THE INDUSTRY SAID CHARLES RAUCH AN S&P ANALYST A LONG PROTRACTED CLAIMS PROCESS WOULD IMPAIR THE FIRM'S ABILITY TO PROTECT ITS RETAIL FRANCHISE FROM OPPORTUNISTIC COMPETITORS S&P'S MOVE MARKS A SHIFT FROM ITS STANCE A FEW MONTHS BACK WHEN IT TOOK NO RATING ACTION ON PRUDENTIAL IN THE WAKE OF ITS REGULATORY SETTLEMENT THOUGH IT HAS BEEN SIX MONTHS SINCE THE SETTLEMENT WAS ANNOUNCED PRUDENTIAL HAS ONLY STARTED TO PAY THE INVESTOR CLAIMS INDEED PRUDENTIAL EARLIER THIS MONTH SAID IT PLANS TO SET ASIDE AN ADDITIONAL 100 MILLION IN RESERVES THIS YEAR TO COVER LEGAL COSTS FROM PARTNERSHIP CLAIMS MEANWHILE CONTINUING DISCLOSURES AND LEGAL PROBLEMS CONTINUE TO DOG THE NATION'S FOURTHLARGEST BROKERAGE FIRM THE THING THAT CONCERNS US IS THAT THE LEGAL PROBLEMS THEY'RE HAVING CONTINUE TO UNFOLD AND AT THIS POINT ARE GOING ON LONGER THAN WE WOULD HAVE ANTICIPATED A FEW MONTHS AGO SAYS MARK BACHMANN AN S&P SENIOR VICE PRESIDENT AT THIS POINT WE'RE NOT SURE WE SEE THE END TO IT YET FOR NOW S&P AFFIRMED THE FINANCIALPROGRAMS RATINGS AT SINGLEA/A1 FOR PRUDENTIAL SECURITIES GROUP THE HOLDING COMPANY AND SINGLEAPLUS/A1 FOR THE PRUDENTIAL SECURITIES INC BROKERAGE UNIT THIS MOVE LARGELY IS SYMBOLIC PRUDENTIAL HAS NO PUBLICLY TRADED DEBT OUTSTANDING RATHER THE FINANCIALPROGRAMS RATINGS REFLECT THE ABILITY OF A FIRM TO MEET ITS OBLIGATIONS A PRUDENTIAL SPOKESMAN SAID THE FIRM WAS HAPPY THAT ITS FINANCIALPROGRAMS RATINGS WERE AFFIRMED AND THAT THE FIRM WASN'T PLACED ON CREDIT WATCH WE'RE CONFIDENT THAT AS WE CONTINUE THROUGH THE SETTLEMENT AND OUR BASIC BUSINESS STAYS STRONG WE CAN DEMONSTRATE TO S&P THAT THE OUTLOOK FOR PRUDENTIAL SECURITIES IS IN FACT POSITIVE THE SPOKESMAN SAID 9403160131 940316 TECHNOLOGY & HEALTH REGENERON SAYS DRUG FAILS TEST STOCK SINKS 33 BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL REGENERON PHARMACEUTICALS INC SAID ITS DRUG TO TREAT LOU GEHRIG'S DISEASE FAILED TO SHOW EFFICACY IN CLINICAL TRIALS SENDING ITS SHARES PLUMMETING 33 THE SETBACK WAS ANOTHER BLOW TO THE BIOTECHNOLOGY INDUSTRY WHICH HAS HAD A STRING OF PRODUCT FAILURES IN RECENT YEARS INVESTORS DUMPED REGENERON'S STOCK WHICH FELL 4375 TO 875 IN NASDAQ STOCK MARKET TRADING THE NEWS CONTRIBUTED TO AN OVERALL DECLINE IN THE BIOTECHNOLOGY SECTOR SAID EDMUND DEBLER AN ANALYST AT MEHTA & ISALY NEW YORK ANYTIME YOU HAVE A PROBLEM OR SUCCESS WITH A CLINICAL TRIAL WITH ONE COMPANY IT AFFECTS THE WHOLE SECTOR HE SAID REGENERON TARRYTOWN NY BLAMED THE RESULTS ON TEMPORARY SIDE EFFECTS OF THE DRUG AND SAID IT HAS ASKED THE FDA FOR APPROVAL TO REDESIGN AND EXTEND THE TRIAL THE MUCH TOUTED DRUG KNOWN AS CILIARY NEUROTROPHIC FACTOR IS IN A NINEMONTH CLINICAL TRIAL FOR THE TREATMENT OF AMYOTROPHIC LATERAL SCLEROSIS OR LOU GEHRIG'S DISEASE A FATAL DISORDER CHARACTERIZED BY THE PROGRESSIVE WEAKENING OF MUSCLES AN INITIAL ANALYSIS OF SIX MONTHS' DATA INDICATED THE DRUG FAILED TO SLOW SIGNIFICANTLY THE RATE OF MUSCLE WEAKENING IN PATIENTS SAID LEONARD SCHLEIFER REGENERON'S CHAIRMAN RESEARCHERS DETERMINED THAT SIDE EFFECTS SUCH AS COUGHING AND WEIGHT LOSS APPEARED TO ACCOUNT FOR THE POOR PERFORMANCE OF A LARGE PERCENTAGE OF PATIENTS ON MUSCLE STRENGTH TESTS DR SCHLEIFER SAID ONCE THE SIDE EFFECTS EASED AFTER A FEW MONTHS TREATED PATIENTS PERFORMED SUBSTANTIALLY BETTER ON MUSCLE STRENGTH TESTS THAN PATIENTS RECEIVING A PLACEBO MOREOVER PATIENTS WHO DIDN'T SUFFER SEVERE SIDE EFFECTS DID BETTER THAN PLACEBO PATIENTS ACCORDING TO THE COMPANY BUT THE INITIAL PROBLEMS WITH SIDE EFFECTS PREVENTED THE DRUG FROM PASSING STATISTICAL SIGNIFICANCE TESTS IN THE CLINICAL TRIAL DR SCHLEIFER SAID THE CURRENT TRIAL INVOLVES 720 PATIENTS TWOTHIRDS OF WHOM ARE BEING TREATED WITH THE DRUG AND THE REST WITH A PLACEBO DR SCHLEIFER SAID HE HOPES THE TRIAL'S EXTENSION WILL BE LESS THAN SIX MONTHS WITH FINAL RESULTS AVAILABLE THIS YEAR A SPOKESMAN FOR AMGEN INC A BIOTECHNOLOGY COMPANY BASED IN THOUSAND OAKS CALIF SAID REGENERON'S LATEST RESULTS WON'T AFFECT THE COMPANIES' JOINT RESEARCH ON TWO OTHER MOLECULES BRAINDERIVED NEUROTROPHIC FACTOR AND NEUROTROPHIN3 UNDER DEVELOPMENT FOR TREATMENT OF NEURODEGENERATIVE DISEASES AND NERVE INJURIES AMGEN OWNS NEARLY 5 OF REGENERON'S STOCK IN NASDAQ TRADING YESTERDAY AMGEN SHARES FELL 75 CENTS TO 3925 9403160130 940316 TREASURY PLANS TO RAISE 825 MILLION IN OFFERING WASHINGTON THE TREASURY PLANS TO RAISE 825 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 252 BILLION IN SHORTTERM BILLS TO REDEEM 2437 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON JUNE 23 1994 AND SEPT 22 1994 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794L36 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794L77 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9403160129 940316 TECHNOLOGY IBM TO UNVEIL NEW VERSION OF ITS SP1 SUPERCOMPUTER HANNOVER GERMANY INTERNATIONAL BUSINESS MACHINES CORP SAID IT PLANS TO LAUNCH A MORE POWERFUL VERSION OF ITS SP1 SUPERCOMPUTER TARGETED AT COMMERCIAL CUSTOMERS RATHER THAN SCIENTISTS OR ENGINEERS THE MACHINE DUBBED SP2 AND SCHEDULED TO BE OFFICIALLY UNVEILED NEXT MONTH IS AIMED AT SERVING BUSINESSES WITH A NEED FOR MASSIVE COMPUTING POWER SUCH AS SECURITIES FIRMS INSURANCE COMPANIES OR RETAILERS IBM EXECUTIVES SAID AT THE CEBIT COMPUTER FAIR HERE LIKE THE SP1 SUPERCOMPUTER LAUNCHED LAST AUTUMN THE NEW MODEL LINKS FAST RISC MICROPROCESSORS IN A SOCALLED PARALLELPROCESSING DESIGN THE MOVE FITS IN WITH IBM'S STRATEGY OF DEVELOPING MACHINES BASED ON THE SPEEDY RISC TECHNOLOGY KNOWN AS REDUCEDINSTRUCTIONSET COMPUTING IBM HAS ALREADY SOLD ABOUT 80 OF ITS SP1 SUPERCOMPUTERS SINCE THE LAUNCH OF THE CABINETSIZED MACHINE IN SEPTEMBER LATER THIS YEAR THE COMPANY PLANS TO UNVEIL A NEW VERSION OF ITS MAINSTAY 390SERIES MAINFRAME BASED ON THE PARALLELPROCESSING ARCHITECTURE IN WHICH DOZENS OF MICROPROCESSORS ARE LINKED TOGETHER TO PERFORM COMPUTATIONS 9403160128 940316 WHO'S NEWS CEPHALON INC CEPHALON INC WEST CHESTER PA KEVIN BUCHI WAS NAMED VICE PRESIDENT FINANCE AND ADMINISTRATION A NEW POSITION AT THE DEVELOPER OF PHARMACEUTICAL PRODUCTS MR BUCHI 38 YEARS OLD WAS MOST RECENTLY SENIOR DIRECTOR FINANCE AND ADMINISTRATION AT THE COMPANY 9403160127 940316 TUESDAY'S MARKETS INFLATION REPORT SPARKS A RALLY IN BOND PRICES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A POSITIVE INFLATION REPORT SPARKED A RALLY IN BOND PRICES STOCK PRICES AND THE DOLLAR WERE MIXED THE DOW JONES INDUSTRIAL AVERAGE LOST 1339 POINTS TO 384959 AND STANDARD & POOR'S 500STOCK INDEX SLIPPED 038 TO 46701 BUT THE NASDAQ COMPOSITE INDEX EDGED UP 072 TO 79352 THE TREASURY'S BENCHMARK 30YEAR BOND JUMPED MORE THAN 7/8 OF A POINT DRIVING THE YIELD DOWN TO 687 FROM 695 MONDAY BOND PRICES SURGED FOLLOWING THE RELEASE OF DATA SHOWING THAT WHOLESALE PRICES IN FEBRUARY ROSE 05 SLIGHTLY ABOVE EXPECTATIONS EXCLUDING FOOD AND ENERGY THE INCREASE WAS JUST 01 BELOW ANALYSTS' FORECASTS ANALYSTS SAID BOND PRICES BENEFITED FROM A CONSIDERABLE SHIFT AMONG TRADERS TO BOND FUTURES FROM S&P FUTURES BUT A REPORT SHOWING AN INCREASE IN CAPACITY UTILIZATION RAISED SOME WARNING FLAGS ABOUT INFLATION ANALYSTS ADDED THAT DATA IS REGARDED BY SOME AS MORE IMPORTANT THAN THE PRICE INDEXES BECAUSE IT SUGGESTS FUTURE TRENDS WHILE THE INDEXES ASSESS PAST CONDITIONS STOCK PRICES FLAGGED AS INVESTORS REMAINED CAUTIOUS SOME INSURANCE COMPANIES AND BANKS THAT HAVE LARGE INVESTMENT MANAGEMENT DIVISIONS ROSE ON THE HEELS OF GE CAPITAL CORP'S TAKEOVER BID FOR KEMPER CORP INSURANCE COMPANIES AND BANKS ALSO WERE AIDED BY YESTERDAY'S DROP IN INTEREST RATES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 014 TO 11604 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3033 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1138 ISSUES ROSE AND 1000 FELL BOND PRICES RALLIED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 7/8 OF A POINT OR MORE THAN 875 FOR EACH 1000 FACE AMOUNT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16965 MARKS AND 10600 YEN COMPARED WITH 16900 MARKS AND 10610 YEN MONDAY 9403160126 940316 SEC PROPOSES FORMULA TO MEASURE OPTIONS RISK WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION PROPOSED A NEW FORMULA FOR BROKERDEALERS TO CALCULATE THE SIZE OF CHARGES THEY MUST TAKE TO OFFSET THE RISK OF THEIR POSITIONS IN LISTED OPTIONS AND RELATED SECURITIES POSITIONS THE AGENCY DESCRIBED THE PROPOSAL AS AN IMPORTANT STEP IN THE COMMISSION'S EFFORTS TO REVAMP THE NET CAPITAL RULE TO MEASURE MORE ACCURATELY THE RISK IN DERIVATIVES THE PROPOSAL DOESN'T AFFECT OVERTHECOUNTER OPTIONS WHICH ARE SPECIALLY TAILORED TRANSACTIONS NEGOTIATED BETWEEN TWO OR MORE PARTIES THE SEC SAID IT IS STILL SEEKING A WAY TO ADEQUATELY MEASURE THE CREDIT RISK ASSOCIATED WITH OTC OPTIONS AND WILL STUDY WHETHER THE NEW FORMULA FOR LISTED OPTIONS IS APPLICABLE UNDER THE PROPOSAL THE OPTIONS CLEARING CORP WOULD FIGURE THE VOLATILITY OF SIMILAR OPTIONS AND THE THEORETICAL GAINS AND LOSSES AT 10 DIFFERENT POINTS DURING THE OPTIONS' LIFETIMES BROKERDEALERS WOULD PLUG THAT INFORMATION ALONG WITH THEIR OPTIONS POSITIONS INTO A COMPUTER SPREADSHEET THAT WOULD GENERATE A THEORETICAL PROFIT OR LOSS FOR EACH OF THE 10 POINTS THE GREATEST POTENTIAL LOSS WOULD BE TAKEN AS A CHARGE OR HAIRCUT AGAINST NET CAPITAL THE SEC SUGGESTS 9403160125 940316 FIRE AT PACIFIC BELL CENTER HALTS LOS ANGELES SERVICE LOS ANGELES AN EARLY MORNING FIRE IN A PACIFIC BELL SWITCHING CENTER DISRUPTED TELEPHONE SERVICE YESTERDAY IN THE DOWNTOWN AREA AND SOME SUBURBAN NEIGHBORHOODS PACIFIC BELL IS A UNIT OF PACIFIC TELESIS GROUP SAN FRANCISCO THE BLAZE WHICH TOOK FIREFIGHTERS MORE THAN AN HOUR TO CONTROL AFFECTED SOME LONGDISTANCE CALLS AS WELL AS EMERGENCY CALLS TO POLICE AND FIRE DEPARTMENTS AS A PRECAUTION HELICOPTERS FLEW OVER SOME SUBURBAN NEIGHBORHOODS AND FIRE ENGINES PATROLLED STREETS TO CHECK FOR POTENTIAL EMERGENCIES NEARLY ALL TELEPHONE SERVICE WAS REPORTED BACK TO NORMAL BY THE AFTERNOON THE FIRE ON THE 13TH FLOOR OF A DOWNTOWN OFFICE BUILDING FORCED THE EVACUATION OF 50 PEOPLE TRADING ON THE PACIFIC STOCK EXCHANGE WASN'T AFFECTED 9403160124 940316 TRANSAMERICA'S TIPHOOK DEAL SAN FRANCISCO TRANSAMERICA CORP SAID IT COMPLETED THE PURCHASE OF THE CONTAINER ASSETS OF LONDONBASED TIPHOOK PLC FOR ABOUT 11 BILLION TRANSAMERICA SAID THE PRICE WAS ADJUSTED DOWNWARD FROM THE 12 BILLION ANNOUNCED IN NOVEMBER PRIMARILY BECAUSE THE DEAL NOW COVERS 501000 EQUIVALENT CONTAINER UNITS DOWN FROM THE 526000 ORIGINALLY ENVISIONED THE DEAL MAKES TRANSAMERICA A FINANCIALSERVICES FIRM THE SECONDLARGEST LESSOR OF CONTAINERS 9403160123 940316 MARKETING & MEDIA GENERAL MILLS TO TEAM UP WITH HERSHEY ON CEREAL MINNEAPOLIS COBRANDING IS BECOMING THE LATEST BREAKFAST CEREAL FAD GENERAL MILLS INC SAYS IT IS TEAMING UP WITH HERSHEY FOODS CORP TO PRODUCE A READYTOEAT CEREAL CALLED REESE'S PEANUT BUTTER PUFFS THE KIDS' CEREAL COMBINES GENERAL MILLS'S KIX CORN PUFF TECHNOLOGY WITH THE TASTE OF HERSHEY'S REESE'S PEANUT BUTTER CUPS CANDY WHICH CONTAIN PEANUT BUTTER AND CHOCOLATE THE NATION'S SECONDLARGEST CEREAL MAKER GENERAL MILLS SAYS THIS IS THE FIRST TIME IT'S COLLABORATED WITH ANOTHER COMPANY IN THE US TO CREATE A CEREAL OVERSEAS GENERAL MILLS DISTRIBUTES CEREALS IN A JOINT VENTURE WITH NESTLE SA ONLY LAST WEEK KELLOGG CO THE MARKET LEADER ANNOUNCED AN AGREEMENT WITH CONAGRA INC WHEREBY KELLOGG WOULD MAKE AND MARKET THREE HEALTHY CHOICE CEREALS LICENSING THE CONAGRA FOODS BRAND BOTH EFFORTS INDICATE THE INCREASING COST OF LAUNCHING A CEREAL AND MANUFACTURERS' EFFORTS TO ENSURE THE BRAND'S SUCCESS TYPICALLY A NEW BRAND MUST WIN MORE THAN ONEHALF OF 1 OF THE 8 BILLION MARKET TO SURVIVE COBRANDING WHERE TWO COMPANIES SHARE BRAND EQUITIES IN A SINGLE PRODUCT HAS BEEN GROWING IN POPULARITY ELSEWHERE IN THE SUPERMARKET IN PART DOUBLEBRANDED ITEMS ARE SEEN AS A WAY TO COUNTER THE RISING POPULARITY OF PRIVATELABEL OR HOUSE BRANDS 9403160122 940316 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB FIVE YEARS AGO WHEN RON BROWN BECAME THE FIRST BLACK TO HEAD THE DEMOCRATIC PARTY HE GOT A PRESCIENT PIECE OF ADVICE FROM ROGER WILKINS A PROMINENT BLACK ACADEMIC YOU ARE PERFECTLY POSITIONED TO DO SOMETHING DEMOCRATS NEED TO DO MR WILKINS ADVISED STEAL THE CRIME ISSUE BACK FROM THE REPUBLICANS TODAY THAT IS ESSENTIALLY WHAT IS HAPPENING AS CRIME ESCALATES IN IMPORTANCE POLLS SAY THE PUBLIC NOW THINKS DEMOCRATS ARE AS CAPABLE OF FIGHTING IT AS ARE REPUBLICANS COMING 25 YEARS AFTER RICHARD NIXON PERFECTED THE ART OF RUNNING FOR SHERIFF AND PRESIDENT SIMULTANEOUSLY THIS REPRESENTS A NOTEWORTHY CHANGE HOW DID IT HAPPEN AT LEAST IN PART PRECISELY BECAUSE OF HARDENING ATTITUDES IN THE BLACK COMMUNITY ABOUT CRIME AND PUNISHMENT THIS NEW ATTITUDE HAS PUSHED DEMOCRATS AS A WHOLE TOWARD A TOUGHER LINE AND HAS MADE IT POLITICALLY CORRECT FOR PRESIDENT CLINTON TO TALK ABOUT HARSHER PENALTIES WITHOUT BEING ACCUSED OF SIMPLY SUGGESTING WAYS TO THROW MORE BLACKS IN JAIL BLACK CONGRESSIONAL LEADERS ACTUALLY HAVE BEEN LAGGING BEHIND THIS CHANGING ATTITUDE WITHIN THEIR OWN CONSTITUENCY BUT AS ANTICRIME LEGISLATION IS CRAFTED IN THE HOUSE OF REPRESENTATIVES BEGINNING THIS WEEK THE TRICK FOR DEMOCRATS IS TO TAKE THIS NEW ATTITUDE INTO ACCOUNT WITHOUT OVERREACTING TO IT FOR A LOOK JUST BELOW THE SURFACE ALSO SHOWS THAT IT'S EASY TO MISINTERPRET THE CHANGE THERE'S NO DOUBT THAT BLACKS ATTACH ENORMOUS IMPORTANCE TO FIGHTING CRIME CONSIDER ONE FINDING IN A POLL TAKEN A WEEK AGO BY THE WALL STREET JOURNAL AND NBC NEWS IN WHICH AMERICANS WERE ASKED TO PICK WHICH OF A SERIES OF ISSUES THEY THOUGHT NEEDED THE GREATEST ATTENTION FROM THE FEDERAL GOVERNMENT AMONG BLACKS 41 CITED COMBATING STREET CRIME AND VIOLENCE DOUBLE THE PERCENTAGE THAT CITED ANY OTHER ISSUE BY CONTRAST 30 OF WHITES CITED COMBATING STREET CRIME AN EARLIER JOURNAL/NBC POLL FOUND FEW BIG DISTINCTIONS ALONG RACIAL LINES OVER SOME OF TODAY'S TRENDY GETTOUGH TACTICS FOR FIGHTING CRIME A MAJORITY OF WHITES AND NONWHITES ALIKE FAVORED PUTTING 100000 MORE POLICE OFFICERS ON THE STREETS SOME 65 OF WHITES SAID THEY FAVORED MAKING MORE CRIMES PUNISHABLE BY DEATH WHILE 59 OF NONWHITES AGREED BY VIRTUALLY IDENTICAL SHARES A MAJORITY OF WHITES AND NONWHITES ALIKE FAVORED LOWERING TO 14 THE AGE AT WHICH JUVENILES CAN BE TRIED AS ADULTS WHEN ACCUSED OF SERIOUS CRIME AND BLACKS WERE FAR MORE ENTHUSIASTIC ABOUT RAISING FEES FOR GUN DEALERS AND TAXES FOR AMMUNITION I THINK IT IS CORRECT THAT THE BLACK COMMUNITY HAS TOUGHENED ITS STANCE ON CRIME SAYS ALBERT WYNN A THOUGHTFUL 42YEAROLD BLACK FRESHMAN CONGRESSMAN FROM MARYLAND REP WYNN TRACES THE CHANGE TO THE END OF A PERIOD OF DENIAL IN THE BLACK COMMUNITY WHEN PEOPLE WOULDN'T EVEN DISCUSS THE PROBLEM OF BLACKONBLACK CRIME FOR THEIR PART AIDES TO PRESIDENT CLINTON SAY THEY PICKED UP ON THE CHANGE WHILE CONDUCTING POLLS AND FOCUS GROUPS WITH VOTERS DURING THE PRESIDENTIAL CAMPAIGN PARTICULARLY IN SOME STRIKING TALKS WITH BLACKS IN SOUTH CAROLINA THE CLINTON CAMP'S CONCLUSION AS LONG AS BLACK VOTERS FEEL ASSURED THAT A POLITICIAN STARTS OUT WITH SOLID CONVICTIONS ON BASIC CIVILRIGHTS PROTECTIONS THEY WILL ACCEPT A TOUGHER LINE ON CRIME THE CONGRESSIONAL BLACK CAUCUS WHICH HAS RESISTED SIGNIFICANT PARTS OF A CRIME BILL THE SENATE PASSED LAST YEAR HAS STARTED CATCHING UP TO THIS NEW ATTITUDE BUT WHILE TAKING ADVANTAGE OF THAT CHANGE THE CLINTON ADMINISTRATION FACES THE PARALLEL TASK OF REINING IN OTHER DEMOCRATS WHO WILL BE TEMPTED TO RACE AHEAD WITH SOME OVERLY SIMPLISTIC NOTIONS ABOUT WHAT AFRICANAMERICANS REALLY WANT THERE IS AMPLE EVIDENCE THAT BLACKS ARE FULLY COMFORTABLE WITH TOUGHER PUNISHMENTS FOR TODAY'S GENERATION OF CRIMINALS ONLY WHEN THEY ARE ACCOMPANIED WITH SOME MEANINGFUL SOCIAL PROGRAMS DESIGNED TO SAVE THE NEXT GENERATION OF POTENTIAL CRIMINALS AT THE SAME TIME ITS ATTITUDES ARE HARDENING REP WYNN WARNS THE BLACK COMMUNITY IS CONCERNED THAT NOT ENOUGH RESOURCES ARE BEING INVESTED IN DISADVANTAGED COMMUNITIES URBAN ACADEMIES BOOT CAMPS THINGS LIKE THIS NOR ARE BLACKS MUCH TAKEN BY SOME OF THE MORE SIMPLISTIC CRIMEFIGHTING PROPOSALS RECENT JOURNAL/NBC POLLS FOR INSTANCE SUGGEST BLACKS ARE CYNICAL ABOUT THE USEFULNESS OF SIMPLY BUILDING MORE PRISONS AND BLACKS SAYS REP WYNN SEE A LOT OF FOOLISHNESS IN SOME OF THE SWEEPING THREESTRIKESANDYOU'REOUT PROPOSALS TO PUT REPEAT OFFENDERS AWAY FOR LIFE PRESIDENT CLINTON SEEMS TO SENSE THE NEED FOR A BALANCING ACT HE'S WISELY TRYING TO LIMIT THE SCOPE OF THE THREESTRIKES PROVISION THAT CONGRESS ULTIMATELY PASSES AND TALKS ABOUT PREVENTION AS WELL AS PUNISHMENT BLACK ATTITUDES CAN HELP FORGE A NEW DEMOCRATIC IDENTITY IN CRIME FIGHTING BUT ONLY IF THE PARTY'S APPROACH IS AS SOPHISTICATED AS ARE BLACK ATTITUDES THEMSELVES 9403160121 940316 TEXAS JOURNAL NOW IF ONLY THEY WERE THIS GOOD PREDICTING FEES BY SCOTT MCCARTNEY MAYBE IT TAKES A LAWYER TO FIGURE OUT THE LAWS OF ECONOMICS THESE DAYS CONSIDER VESTER T HUGHES JR THE HUGHES IN THE PROMINENT DALLAS LAW FIRM HUGHES & LUCE EACH YEAR AT THE ANNUAL NORTHERN TRUST BANK OF TEXAS ECONOMIC BREAKFAST WEALTHY CLIENTS ARE ASKED TO PREDICT THE FOLLOWING YEAR'S PERFORMANCE OF THE DOW JONES INDUSTRIAL AVERAGES THE PRICE OF GOLD AND THE YIELD OF THE FIVEYEAR TREASURY BILL THE FORECASTERS INCLUDE SOME OF THE STATE'S HEAVIEST FINANCIALINDUSTRY HITTERS THIS YEAR'S WINNER OF THE CRYSTALBALL TROPHY MR HUGHES MR HUGHES A TAXLAW EXPERT FORECAST A RISE IN THE DOW OF APPROXIMATELY 15 FROM 336514 ON FEB 25 1993 TO 387081 ON FEB 25 1994 CLOSE BUT A BIT TOO OPTIMISTIC THE DOW CLOSED AT 383878 ON FEB 25 UP 14 OVER THE PREVIOUS 12 MONTHS AFTER A RUN OF 47364 POINTS MR HUGHES WAS ONLY OFF BY 3203 POINTS THE BULLISH MR HUGHES 65 WAS ALSO A TOUCH TOO HOPEFUL ON THE PROSPECTS FOR LOW INFLATION AND LOW INTEREST RATES GOLD HE SAID WOULD BE 31820 AN OUNCE INSTEAD OF THE ACTUAL CLOSE OF 37980 AND THE FIVEYEAR TBILL YIELD WOULD BE A MERE 5404 HE PREDICTED ACTUALLY THE YIELD WAS 563 LUCKY GUESSES PERHAPS NOT EVER SINCE A CLIENT WITH A LARGE PORTFOLIO ASKED HIM TO MANAGE HIS FUNDS UNTIL THEY COULD BE TURNED OVER TO CHARITY MR HUGHES HAS BEEN RISING AT 5 AM TO READ THE DAY'S BUSINESS NEWS AND HE HAS BEEN AN AVID MARKET WATCHER I'VE BEEN RIGHT ON SOME SIGNIFICANT CALLS SAYS MR HUGHES WHO HAS NO INTENTION OF SWITCHING CAREERS AND BECOMING A MONEY MANAGER AND I'VE BEEN WRONG TOO ONE MISTAKE NOT FORESEEING THE BUST IN THE TEXAS ECONOMY I WAS WRONG ON THE TIMING HE SAYS IT WAS INEVITABLE AND I SHOULD HAVE SEEN IT COMING I HAD A FRENCH CLIENT ONCE WHO SAID NEVER FORGET TREES NEVER GROW TO THE SKY' A LOT OF TEXANS FORGOT TREES NEVER GROW TO THE SKY 9403160120 940316 WHO'S NEWS JACK GRUBMAN GOES TO SALOMON TO HEAD TELECOMMUNICATIONS NEW YORK SALOMON INC'S SALOMON BROTHERS WOOED AWAY JACK B GRUBMAN ONE OF THE MOST WELLKNOWN TELECOMMUNICATIONS ANALYSTS TO HEAD ITS GLOBAL TELECOMMUNICATIONS EQUITY RESEARCH TEAM MR GRUBMAN 40 YEARS OLD WAS PREVIOUSLY A MANAGING DIRECTOR IN PAINEWEBBER INC'S EQUITY RESEARCH DEPARTMENT HE SAID HE WAS ATTRACTED TO SALOMON'S GLOBAL PRESENCE AND ITS LARGE INVESTMENT BANKING AND UNDERWRITING OPERATIONS IN THE TELECOMMUNICATIONS AREA THE INDUSTRY IS EXPLODING AND THE NEXT TWO OR THREE YEARS WILL DETERMINE THE INDUSTRY'S DIRECTION FOR SEVERAL DECADES HE SAID ALTHOUGH SALOMON IS EXPECTED TO BE A MAJOR PLAYER IN HELPING A HOST OF FOREIGN GOVERNMENTS PRIVATIZE THEIR STATERUN TELEPHONE COMPANIES THE BROKERAGE FIRM LACKED A PROMINENT TELECOMMUNICATIONS ANALYST TO LEAD THE EFFORT MR GRUBMAN'S POSITION IS NEW MR GRUBMAN ADVISED JOHN MALONE CHIEF EXECUTIVE OF TELECOMMUNICATIONS INC AFTER THE CABLE COMPANY AGREED TO BE ACQUIRED BY BELL ATLANTIC CORP A DEAL THAT HAS SINCE FALLEN THROUGH SALOMON BROTHERS FOR ITS PART HAS PLAYED A SIGNIFICANT ROLE IN ADVISING TELECOMMUNICATIONS COMPANIES IN SEVERAL MERGER AND ACQUISITION TRANSACTIONS BELL ATLANTIC WAS ITS CLIENT IN THE PROPOSED DEAL WITH TCI SALOMON ALSO ADVISED PACIFIC TELESIS GROUP IN ITS PLAN TO SPIN OFF ITS WIRELESS COMMUNICATIONS OPERATIONS INSTITUTIONAL INVESTORS WILL CONTINUE TO BE MY CLIENTS BUT NOW I'LL BE TRAIPSING AROUND THE WORLD AND JUST WORKING HARDER HE SAID 9403160119 940316 YIELDS ON CDS ROSE IN WEEK SURVEY FINDS NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS ROSE IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS INCREASED TO 299 FROM 293 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS ROSE TO 470 FROM 463 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS JUMPED TO 346 FROM 323 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 484 FROM 474 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE CREPT TO 313 FROM 311 ON FIVEYEAR JUMBOS THE AVERAGE EDGED UP TO 504 FROM 499 ACCORDING TO BANXQUOTE 9403160118 940316 INTERNATIONAL EU CLEARS MEDIA ACQUISITION BRUSSELS THE EUROPEAN UNION COMMISSION APPROVED THE JOINT ACQUISITION OF BRITISH NEWSPAPER PUBLISHING PLC BY SPANISH MEDIA GROUP PROMOTORA DE INFORMACIONES SA OR PRISA ITALY'S EDITORIALE L'ESPRESSO SPA AND UK NEWSPAPER GROUP MIRROR GROUP NEWSPAPERS PLC IN A STATEMENT THE COMMISSION SAID THE ACQUISITION DOESN'T CREATE COMPETITION WORRIES BECAUSE THE SPANISH AND ITALIAN COMPANIES OPERATE ON DIFFERENT MARKETS TO THEIR ACQUISITION WHILE THE MIRROR GROUP OPERATES IN A DIFFERENT PART OF THE UK NEWSPAPER MARKET FROM NEWSPAPER PUBLISHING NEWSPAPER PUBLISHING OWNS BRITISH BROADSHEETS THE INDEPENDENT AND THE INDEPENDENT ON SUNDAY WHILE MIRROR GROUP PUBLISHES TABLOID AND REGIONAL NEWSPAPERS 9403160117 940316 COMPUTERS THE GENDER DIVIDE A TOOL FOR WOMEN A TOY FOR MEN VIDEO GAMES HELP BOYS GET A HEAD START BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL THE AFTERSCHOOL ROUTINES OF JENNY GATES 10 YEARS OLD AND HER BROTHER RYAN SEVEN ARE PREDICTABLE AFTER A QUICK TRIP TO THE REFRIGERATOR RYAN OFTEN PLAYS A MARIO VIDEO GAME AT THEIR HOME IN SUBURBAN DETROIT JENNY READS A BOOK OR SITS DOWN TO A GAME OF CLUE WITH A FRIEND WHO IS USING THE TIME BETTER I AM JENNY SAYS PROUDLY VIDEO GAMES ARE FOR MORONS BUT THE ACTIVITY MAY NOT BE AS MINDLESS AS JENNY GATES THINKS A GROWING NUMBER OF PSYCHOLOGISTS AND EDUCATORS SAY GIRLS MAY BE PUTTING THEMSELVES AT A DISADVANTAGE BY NOT PLAYING VIDEO GAMES MORE OFTEN WHILE VIDEO GAMES ARE OFTEN CRITICIZED AS THE BANE OF LEARNING PLAYING THEM MAY BE A QUICKANDDIRTY ENTRY POINT INTO THE SOMETIMES DAUNTING WORLD OF COMPUTERS THE GUYS JUST GO TICKY TICKY' AND WAIT TO SEE WHAT HAPPENS ON THEIR SCREENS SAYS MARY WARE AN EDUCATION PROFESSOR AT THE STATE UNIVERSITY OF NEW YORK AT CORTLAND GIRLS SIT THERE WONDERING IF THEY'RE GOING TO BREAK THE MACHINE BOYS PLAY VIDEO GAMES FAR MORE THAN GIRLS DO ACCORDING TO NPD GROUP INC WHICH TRACKS RETAIL SALES 75 OF VIDEO GAMES ARE BOUGHT FOR BOYS THE GAP IS WIDER FOR MORE ADVANCED SYSTEMS A USAGE SURVEY BY NINTENDO LTD OF ITS OLDER GAMES WHICH RUN ON AN EIGHTBIT CHIP SHOWED MALES OUTNUMBERED FEMALES 59 TO 41 AMONG USERS OF ITS MORE POWERFUL 16BIT SUPER NINTENDO ENTERTAINMENT SYSTEM THOUGH 82 ARE MALE SIMILARLY 80 OF THE PLAYERS ON SEGA ENTERPRISES LTD'S 16BIT SYSTEM ARE MALE SURVEYS OF CHILDREN AGED NINE TO 14 SHOW THAT GIRLS HAVE A BROAD RANGE OF INTERESTS FROM MAKING NEW FRIENDS TO SHOPPING TO READING TO GETTING INVOLVED IN AFTERSCHOOL ACTIVITIES SAYS GEORGE HARRISON NINTENDO'S DIRECTOR OF MARKETING BOYS HOWEVER TEND TO BE FIXATED ON ONE OR TWO HOBBIES SUCH AS COLLECTING BASEBALL CARDS OR PLAYING VIDEO GAMES VIDEO GAMES AIMED AT GIRLS INCLUDING ECHO THE DOLPHIN AND A SERIES OF BARBIE GAMES HAVE BEEN DISAPPOINTMENTS A HANDFUL APPEAL EQUALLY TO BOTH SEXES INCLUDING NINTENDO'S TETRIS AND SEGA'S COLUMNS TWO GAMES IN WHICH PLAYERS ALIGN PATTERNS AND OBJECTS BUT A MAJORITY OF VIDEO GAMES FEATURE VIOLENCE OFTEN AIMED AT FEMALES AND STRESS CERTAIN COGNITIVE SKILLS THAT ACADEMIC RESEARCHERS GENERALLY AGREE MALES ARE BETTER AT SUCH AS DEPTH PERCEPTION AND SPATIAL REASONING BOYS ARE GOOD AT NAVIGATING THROUGH A MAZE PARTICULARLY VIDEOGAME MAZES THAT CONSIST OF GEOMETRIC CONFIGURATIONS SAYS EILEEN MCMAHON A LOS ANGELESE RESEARCHER ON CHILDREN'S INTERACTIVE MEDIA RESEARCH ON THE PRACTICAL BENEFITS OF PLAYING VIDEO GAMES IS IN ITS INFANCY BUT SOME EXPERTS WONDER IF A PASSION FOR VIDEO GAMES EARLY IN LIFE LAYS A FOUNDATION FOR A CAREER IN TECHNOLOGY MS WARE WHO HAS TAUGHT COLLEGE COMPUTER CLASSES OBSERVES THAT BOYS AND GIRLS PARTICIPATE IN ABOUT EQUAL NUMBERS IN BEGINNER COMPUTER PROGRAMMING CLASSES AND BOTH SEXES DO EQUALLY WELL BUT GIRLS TEND TO DROP OUT OF PROGRAMMING 2 AND PROGRAMMING 3 COURSES WHEN THEY GET MORE INTRICATE SHE SAYS NOT ALL EXPERTS AGREE THAT VIDEOGAME SKILLS CAN BE TRANSFERRED TO REALLIFE ENDEAVORS THE PROBLEM WITH EYEHAND COORDINATION IS IT DOESN'T NECESSARILY TRANSFER TO ANYTHING ELSE SAYS JEFFREY DEREVENSKY A MCGILL UNIVERSITY ASSOCIATE PROFESSOR AND CHILD PSYCHOLOGIST ONE AREA OF APPLICATION IS JET FIGHTING RESEARCHERS SAY BUT THE WORLD CAN USE ONLY SO MANY JET FIGHTERS SAYS PROF DEREVENSKY THE GENDER GAP IN TECHNOLOGY TODAY HAS TURNED INTO A WOMEN'S RIGHTS ISSUE OF SORTS PEGGY CHARREN THE FORMER HEAD OF ACTION FOR CHILDREN'S TELEVISION AND A CRITIC OF VIDEOGAME VIOLENCE SAYS A PART OF ME CALLS FOR MORE EDUCATIONAL VIDEO FARE AND A PART OF ME SAYS WHERE ARE THE VIDEO GAMES TO INTEREST OUR GIRLS EVEN IF THE STUFF'S TERRIBLE THE INDUSTRY HAS A RELATIVELY SMALL TIME WINDOW TO INTEREST GIRLS IN VIDEO GAMES ADDS MICHEALENE CRISTINI RISLEY A SENIOR EXECUTIVE FOR SEGA OF AMERICA INC A REDWOOD CITY CALIF UNIT OF JAPAN'S SEGA ENTERPRISES YOU HAVE TO GET THEM BY AGE 12 OTHERWISE YOU'RE NOT GOING TO SEE THEM AGAIN UNTIL AFTER AGE 25 SHE SAYS IT'S GOING TO TAKE SOME INITIATIVE BY MANUFACTURERS AGREES LAURIE THORNTON A SPOKESWOMAN FOR CAPCOM USA INC A VIDEOGAME MAKER IN SANTA CLARA CALIF RIGHT NOW IT'S A QUESTION OF THE CHICKEN OR THE EGG MANUFACTURERS SAY THEY'RE NOT MAKING MORE GAMES FOR GIRLS BECAUSE GIRLS AREN'T INTERESTED AND GIRLS SAY THEY AREN'T INTERESTED BECAUSE MANUFACTURERS AREN'T MAKING MORE GAMES FOR GIRLS SEE RELATED ARTICLE GENDER AFFECTS HOW USER SEES THE COMPUTER WSJ MARCH 16 1994 9403160116 940316 INTERNATIONAL MEXICAN BANK PRESIDENT IS KIDNAPPED HARP'S ABDUCTION BOLDEST IN DECADES ADDS JITTERS TO MARKETS STOCKS FALL BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY GUNMEN CARRIED OFF THE BOLDEST KIDNAPPING IN MEXICO IN MORE THAN TWO DECADES SNATCHING A BILLIONAIRE BANK PRESIDENT AS HE WAS BEING DRIVEN TO WORK THROUGH ONE OF THE NATION'S MOST EXCLUSIVE SUBURBS OFFICIALS BELIEVE THE MOTIVE IS RANSOM BUT THE ACT SENT A JOLT THROUGH ALREADY JITTERY FINANCIAL MARKETS THAT HAVE BEEN SHAKEN BY POLITICAL UNCERTAINTIES INCLUDING THE CHIAPAS UPRISING SINCE THE FIRST OF THE YEAR THE KIDNAPPERS MADE OFF MONDAY MORNING WITH ALFREDO HARP HELU THE 50YEAROLD PRESIDENT OF GRUPO FINANCIERO BANAMEXACCIVAL SA MEXICO'S BIGGEST BANK AND BROKERAGE FIRM MR HARP ONE OF THIS COUNTRY'S MOST PROMINENT BUSINESSMEN WAS APPARENTLY PULLED FROM HIS CAR BY AT LEAST THREE GUNMEN LOCAL REPORTS UNCONFIRMED BY AUTHORITIES SAID THAT NEITHER HE NOR HIS DRIVER WAS INJURED A GOVERNMENT OFFICIAL CLOSE TO THE CASE DECLINED TO SAY WHETHER MR HARP'S FAMILY OR THE BANK HAD RECEIVED A RANSOM NOTE BUT HE DISMISSED THE POSSIBILITY THAT THE KIDNAPPERS MIGHT HAVE POLITICAL MOTIVES WHETHER RELATED TO THE JAN 1 REBELLION IN THE STATE OF CHIAPAS OR TO THE NATION'S PRESIDENTIAL RACE NOW UNDER WAY THE OFFICIAL SAID THAT POLICE ALREADY HAVE SOME SUSPECTS BUT IDENTIFIED THEM ONLY AS PROFESSIONAL KIDNAPPERS POLICE SPECULATE THE ATTACK MAY HAVE BEEN ORGANIZED BY THE SAME PEOPLE WHO TWO YEARS AGO KIDNAPPED CABLETELEVISION HEIR JOAQUIN VARGAS GUAJARDO THE KIDNAPPERS WHO REPORTEDLY RECEIVED MILLIONS OF DOLLARS TO RELEASE MR VARGAS WERE NEVER CAUGHT BUT GOVERNMENT OFFICIALS SAID AT THE TIME THAT THEY WERE APPARENTLY FORMER POLICE OFFICIALS DISGRUNTLED BECAUSE THEY WERE FIRED DURING AN ANTICORRUPTION CAMPAIGN THE OFFICIAL'S STATEMENT ABOUT MONETARY MOTIVES APPEARED TO BE DESIGNED PARTLY TO ALLAY CONCERNS THAT SOCIAL AND POLITICAL UNREST IS GROWING IN MEXICO STILL A NERVOUS STOCK MARKET TUMBLED 6785 POINTS YESTERDAY OR 279 FOLLOWING A 323 DECLINE IN THE IPC INDEX MONDAY THE MARKET IS NOW DOWN MORE THAN 9 SINCE JAN 1 DESPITE IMPRESSIVE GAINS EARLY IN THE YEAR THE PESO FELL SHARPLY IN EARLY TRADING YESTERDAY BUT RECOVERED TO CLOSE AT 33050 PESOS TO THE DOLLAR IN THE SPOT MARKET COMPARED WITH 32700 MONDAY THE KIDNAPPING ADDED TO THE UNCERTAINTY IN THE BUSINESS COMMUNITY HERE BY REMINDING EXECUTIVES HOW VULNERABLE THEY ARE TO ATTACKS DOZENS OF BUSINESSMEN WEALTHY FARMERS AND CATTLE RANCHERS HAVE BEEN KIDNAPPED IN RECENT YEARS BECAUSE POLICE APPEAR POWERLESS TO STOP THE KIDNAPPINGS MANY SUCH CRIMES GO UNREPORTED OFTEN FAMILIES OF VICTIMS QUIETLY PAY RANSOM DEMANDS THE HIGHPROFILE VARGAS CASE WAS AN EXCEPTION DRAWING ATTENTION IN PART BECAUSE THE OWNER OF A LARGE LOCAL PERSONALCOMPUTER COMPANY WAS KIDNAPPED AT ALMOST THE SAME TIME KIDNAPPERS HAVEN'T GRABBED SOMEONE OF MR HARP'S STATURE SINCE 1973 WHEN LEFTIST TERRORISTS SEIZED AND MURDERED EUGENIO GARZA SADA THE BESTKNOWN BUSINESSMAN IN MONTEREY MR HARP HAS BECOME ONE OF THE MAJOR FIGURES IN MEXICAN FINANCE THROUGH HIS PARTNERSHIP WITH ROBERTO HERNANDEZ WHILE MR HERNANDEZ HAS BEEN KNOWN AS THE VISIONARY WHO PUT TOGETHER THE BIGGEST FINANCIAL GROUP IN MEXICO MR HARP A HALTING PUBLIC SPEAKER HAS BEEN THE DETAIL MAN WHO HAS MADE THE GROUP WORK MR HARP WHO IS OF LEBANESE DESCENT AND SPEAKS FLUENT ARABIC IS A COUSIN OF CARLOS SLIM WHO CONTROLS TELMEX AND THE CONGLOMERATE GRUPO CARSO SA BOTH HAVE BEEN REFERRED TO AS MEMBERS OF THE INNER CIRCLE OF BUSINESS ADVISERS FOR PRESIDENT CARLOS SALINAS DE GORTARI 9403160115 940316 DRESS BARN ACQUIRES 11 STORES STAMFORD CONN DRESS BARN INC SAID IT HAS ACQUIRED 11 WOMEN'S APPAREL STORES WHICH FORMERLY OPERATED UNDER THE SWITZER'S NAME THE CHAIN OF WOMEN'S OFFPRICE APPAREL STORES SAID THE STORES ARE LOCATED IN PHOENIX LAS VEGAS ALBUQUERQUE NM AND EL PASO TEXAS 9403160114 940316 WHO'S NEWS ROCKWELL INTERNATIONAL CORP ROCKWELL INTERNATIONAL CORP SEAL BEACH CALIF PAUL B SMITH CORPORATE SENIOR VICE PRESIDENT OPERATIONS WAS NAMED PRESIDENT OF THE COMPANY'S ROCKETDYNE DIVISION HE SUCCEEDS ROBERT D PASTER 53 YEARS OLD WHO WAS APPOINTED PRESIDENT OF THE AUTONETICS ELECTRONIC SYSTEMS DIVISION MR SMITH ALSO 53 WON'T BE SUCCEEDED IMMEDIATELY AS HEAD OF AUTONETICS MR PASTER SUCCEEDS THOMAS L GUNCKEL II 58 WHO WAS NAMED SENIOR VICE PRESIDENT RESEARCH AND ENGINEERING FOR THE PARENT DR GUNCKEL SUCCEEDS ROBERT L CATTOI 68 WHO CONTINUES AS SENIOR VICE PRESIDENT AND TECHNICAL ADVISER TO THE OFFICE OF THE CHAIRMAN UNTIL HIS RETIREMENT THIS YEAR ROCKWELL IS A DIVERSIFIED HIGHTECHNOLOGY CONCERN WITH INTERESTS IN THE ELECTRONICS AEROSPACE AUTOMOTIVE AND GRAPHICS BUSINESSES 9403160113 940316 INTERNATIONAL TRADE SURPLUS OF JAPAN WIDENED DURING FEBRUARY BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S MAMMOTH TRADE SURPLUS WIDENED IN FEBRUARY BUT ECONOMISTS SAY THE NEWS MAY NOT BE AS POLITICALLY TROUBLESOME FOR TOKYO AS IT FIRST SEEMS FOR FEBRUARY JAPAN'S GLOBAL TRADE SURPLUS TOTALED 1091 BILLION 33 MORE THAN THE YEAREARLIER SURPLUS OF 1057 BILLION THE IMBALANCE HOWEVER WAS SMALLER THAN THE 11 BILLION OR MORE THAT MANY PRIVATE ECONOMISTS HAD FORECAST MOREOVER JAPAN'S POLITICALLY SENSITIVE SURPLUS WITH THE US THE MOST VOCAL CRITIC OF JAPANESE TRADE POLICIES SHRANK FOR THE FIRST TIME IN NINE MONTHS THE TRADE IMBALANCE WITH THE US NARROWED 09 TO 434 BILLION MOSTLY BECAUSE OF A 15 JUMP IN JAPANESE IMPORTS OF US GOODS THE PERFORMANCE WAS PACED BY A 24 INCREASE IN SEMICONDUCTOR IMPORTS A NEARLY 10 SURGE FOR FOOD PRODUCTS AND A STRONG PERFORMANCE FOR AIRPLANES ECONOMISTS SAY THE CLINTON ADMINISTRATION'S BACKING OF A WEAK DOLLAR AND STRONG YEN POLICY HAS MADE IT CHEAPER FOR JAPANESE CONSUMERS TO BUY FOREIGN GOODS JAPANESE IMPORTS ARE SOARING SAID MICHAEL HARTNETT AN ECONOMIST AT SCHRODERS SECURITIES AND THAT IS EXACTLY WHAT THE US WANTS JAPAN'S TRADE SURPLUS WITH THE US ACCOUNTS FOR ROUGHLY 40 OF ITS TOTAL GLOBAL SURPLUS BUT ECONOMISTS WARNED THAT THE DECREASE IN THE TRADE IMBALANCE WITH THE US PROVIDES LITTLE EVIDENCE THAT JAPAN'S OVERALL TRADE SURPLUS IS GOING TO DECREASE ANYTIME SOON INDEED JAPAN'S SURPLUS WITH THE BOOMING ECONOMIES OF ASIA IS GROWING SHARPLY BECAUSE OF STRONG DEMAND FOR JAPANESE GOODS PARTICULARLY CONSTRUCTION EQUIPMENT AND PLANT MACHINERY JAPAN'S SURPLUS WITH ASIA IN FEBRUARY REACHED 47 BILLION UP NEARLY 11 FROM A YEAR EARLIER AND WHILE JAPAN'S IMPORTS MAY BE GROWING QUICKLY THEY ARE STILL OVERWHELMED BY THE LEVEL OF PRODUCTS SHIPPED BY THE JAPANESE EXPORT MACHINE JAPAN IMPORTED 186 BILLION WORTH OF GOODS DURING FEBRUARY A 7 INCREASE ON THE YEAR BUT JAPAN'S EXPORTS TOTALED 295 BILLION IN FEBRUARY UP 56 FROM A YEAR EARLIER MANY ECONOMISTS SAY A DRASTIC NARROWING OF THE GLOBAL SURPLUS WILL REQUIRE A TURNAROUND IN JAPAN'S SLUMPING ECONOMY RECENT INCREASES IN IMPORTS NOTWITHSTANDING DOMESTIC DEMAND IS STILL TOO WEAK TO BRING ABOUT A SHARP SURPLUS REDUCTION SAID SATOSHI SHIMAMOTO SENIOR ECONOMIST AT MMS INTERNATIONAL A MARKETRESEARCH FIRM STILL THE NARROWER TRADE IMBALANCE WITH THE US IS THE LATEST GOOD NEWS ON THE TRADE FRONT AFTER POLICYMAKERS SUCCESSFULLY RESOLVED A DISPUTE OVER US ACCESS TO JAPAN'S CELLULARTELEPHONE MARKET THE DEVELOPMENTS HAVE JAPAN'S STOCK MARKET AT A SIXMONTH HIGH AND FOREIGNEXCHANGE TRADERS HAVE BID YEN LOWER AGAINST THE DOLLAR BY A FULL YEN OVER THE PAST TWO DAYS RECENT NEWS SUGGESTS THAT A LONGAWAITED ECONOMIC RECOVERY MAY FINALLY BE BREWING AFTER A STEADY DRUMBEAT OF GRIM ECONOMIC NEWS OVER THE PAST TWO YEARS AGENCIES HAVE RELEASED A FEW UPBEAT STATISTICS IN RECENT WEEKS SHOWING FACTORY OUTPUT EDGING HIGHER AND STRONG HOUSING STARTS MEANWHILE JAPAN'S ECONOMIC PLANNING AGENCY SAID THAT MACHINERY ORDERS IN JANUARY ROSE 33 FROM A YEAR EARLIER 9403160112 940316 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN A BURNING OIL TANKER LEFT THE BOSPORUS CLOSED FOR A SECOND DAY STALLING ABOUT 100 SHIPS IN THE TRADE ROUTE THAT LINKS THE BLACK SEA AND THE MEDITERRANEAN THE FIRE BEGAN SUNDAY NIGHT WHEN A FREIGHTER COLLIDED WITH THE TANKER KILLING 17 SAILORS A DOZEN OTHERS WERE MISSING AUTHORITIES IN TURKEY SAID THE BOSPORUS A NARROW 20MILELONG STRAIT WOULDN'T REOPEN UNTIL THE FIRE WAS PUT OUT DUTCH FIREFIGHTERS AND POLLUTIONCONTROL SPECIALISTS WERE HELPING TO DOUSE THE FIRE AND CLEAN UP THE OIL SPILL THE EXTENT OF WHICH HADN'T BEEN DETERMINED THE TANKER WAS CARRYING ABOUT 16 MILLION GALLONS OF CRUDE OIL FROM RUSSIA TO ITALY THE ACCIDENT PROMPTED RENEWED CALLS FOR TIGHTER RULES FOR THE WATERWAY THAT RUNS THROUGH ISTANBUL A TURKISH OFFICIAL APPEALED AGAIN FOR CONSTRUCTION OF PIPELINES ACROSS TURKEY TO CARRY OIL FROM THE FORMER SOVIET UNION ALLOWING A BAN ON TANKERS IN THE BOSPORUS KAZAKHSTAN WILL HOLD ITS FIRST PRIVATIZATION AUCTION APRIL 29 OFFERING 51 STAKES IN 50 OF THE FORMER SOVIET REPUBLIC'S ENTERPRISES TO BECOME STOCKHOLDERS OF THE MIDSIZE COMPANIES RANGING FROM CONSTRUCTION FIRMS TO TEXTILE AND FOOD PLANTS CITIZENS MUST SUBMIT VOUCHERS TO ANY OF MORE THAN 100 INVESTMENT FUNDS THE GOVERNMENT WILL RETAIN 39 STAKES FOR SUBSEQUENT SALES TO FOREIGN AND DOMESTIC INVESTORS MANAGERS AND WORKERS WILL OWN THE REMAINING 10 OF EACH COMPANY THE GOVERNMENT PLANS TO PRIVATIZE 850 ENTERPRISES BY YEAR END IN WEEKLY AUCTIONS RUSSIA PLANS TO AUCTION STAKES IN 89 BIG INDUSTRIAL COMPANIES BY JUNE IN THE ACCELERATED PRIVATIZATION PROGRAM HOLDINGS WILL BE OFFERED IN THE OIL ALUMINUM AND OTHER SECTORS THOUGH RUSSIA HAS BEEN TURNING STATE ENTERPRISES OVER TO PRIVATE OWNERS SINCE LATE 1992 IT HAS PUT ITS INDUSTRIAL GIANTS UP FOR SALE ONLY RECENTLY AT THE AUCTIONS IN WHICH CITIZENS BID FOR SHARES WITH PRIVATIZATION VOUCHERS ONCE THESE VOUCHERS EXPIRE JUNE 30 STAKES WILL BE SOLD IN COMPETITIVE TENDERS JAPANESE INDUSTRIES' CAPITAL SPENDING IN THE YEAR ENDING MARCH 31 IS EXPECTED TO DROP 56 FROM A YEAR EARLIER A SURVEY BY THE JAPAN DEVELOPMENT BANK FOUND THE DECLINE WOULD MARK THE FIRST TIME SINCE THE SURVEYS BEGAN IN 1956 THAT THE OUTLAYS FELL FOR THREE YEARS IN A ROW THE ELECTRICAL MACHINERY SECTOR EXPECTS TO EXPAND ITS INVESTMENT 3 ITS FIRST CLIMB IN FOUR YEARS BUT CONSTRUCTION SPENDING COULD SLUMP 32 SEPARATELY A FEDERATION OF ECONOMIC ORGANIZATIONS SURVEY FOUND COMPANIES INCREASINGLY FEEL THAT A JAPANESE ECONOMIC RECOVERY WON'T OCCUR UNTIL LATE THIS YEAR VIOLENT CRIMES ARE INCREASING IN CHINA THE GOVERNMENT'S TOP PROSECUTOR ZHANG SIQING TOLD THE LEGISLATURE LAST YEAR 574176 PEOPLE WERE CHARGED WITH CRIMINAL OFFENSES AND 79 OF THEM WERE CONVICTED CHINA TYPICALLY DOESN'T SPECIFY DETAILS ON CRIME BUT AN OFFICIAL NEWSPAPER HAS REPORTED THAT VIOLENT CRIME ROSE 18 IN LAST YEAR'S FIRST 10 MONTHS MR ZHANG SAID CRIME IS GROWING IN RURAL AS WELL AS URBAN AREAS AND CHINESE INCREASINGLY FEEL UNSAFE HE SAID THE SITUATION COULD WORSEN BLAMING ECONOMIC REFORMS THAT ALSO FOSTER OFFICIAL CORRUPTION AND BUSINESS DISPUTES THE EUROPEAN UNION COMMISSION DECLINED TO EXTEND MINIMUM PRICES FOR FISH IN FRANCE REJECTING THE GOVERNMENT'S DEMAND FOR CONTINUED PROTECTION OF ITS EMBATTLED FISHING INDUSTRY THE EU VIEWED THE PRICE MEASURE BEGUN FEB 4 AS A SHORTTERM SOLUTION TO PROBLEMS IN THE FRENCH SECTOR WHICH COMPLAINED THAT IT WAS BEING HURT BY INEXPENSIVE IMPORTS EU FISHERIES MINISTERS WILL MEET APRIL 12 TO EXAMINE LONGTERM SOLUTIONS FOR FRENCH FISHERMEN FRANCE HAS LIFTED STRICT INSPECTION PROCEDURES THAT HAD CURTAILED SHIPMENTS FROM ABROAD THOUGH IT HAS BOOSTED PERSONAL INCOMES CHINA'S SURGING ECONOMY HAS CAUSED WATER AND AIR POLLUTION TO WORSEN AND WASTE IN MOST CITIES ISN'T TREATED PROPERLY AN ENVIRONMENTAL OFFICIAL SAID BUT CHINA'S GROWTH PACE WHICH TOPPED 13 LAST YEAR MUST QUICKEN TO PRODUCE MORE GOVERNMENT REVENUE TO PAY FOR EFFORTS TO CUT POLLUTION SAID QU GEPING CHAIRMAN OF THE LEGISLATURE'S ENVIRONMENTAL PROTECTION PANEL MEANWHILE HE SAID CHINA WOULD ENACT TOUGH NEW LAWS AND IMPOSE HIGHER FINES FOR POLLUTERS ECONOMIC LOSSES IN CHINA LINKED TO POLLUTION TOTAL 115 BILLION A YEAR MR QU ESTIMATED BUT SAID THIS DIDN'T TAKE INTO ACCOUNT HARM TO PEOPLE WHO LIVE AND WORK IN RAPIDLY DETERIORATING CONDITIONS CHINA'S CITIES RECORD SOME OF THE WORLD'S HIGHEST LEVELS OF AIR POLLUTION WHILE SOIL EROSION AND FASTDROPPING WATER TABLES ARE INCREASINGLY APPARENT MR QU SAID THAT MANY LOCAL LEADERS EMPHASIZED ECONOMIC GROWTH AT THE EXPENSE OF ENVIRONMENTAL PROTECTION RUSSIAN INDUSTRIAL OUTPUT LAST MONTH PLUNGED 24 FROM A YEAR EARLIER THE SHARPEST DROP SINCE ECONOMIC REFORMS BEGAN IN 1992 BUT ROSE 23 FROM JANUARY TWO RESEARCHERS IN THE SCOTTISH HIGHLANDS SAID THE 1934 PHOTOGRAPH OF THE LOCH NESS MONSTER WITH A HUMP BACK AND LONG NECK IS A FAKE AND DEPICTS A MODEL MADE FROM A TOY SUBMARINE FITTED TO RESEMBLE A SEA SERPENT THE LEGEND OF THE MONSTER NOW A 37 MILLIONAYEAR TOURIST ATTRACTION DATES FROM THE YEAR 565 9403160111 940316 INSIDE TRACK FIELDCREST INSIDERS FIND TEXTILE MAKER ISN'T A WET BLANKET AS AN INVESTMENT BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL INSIDERS AT FIELDCREST CANNON INC THE HOUSEHOLDTEXTILE MANUFACTURER HAVE BEEN SNAPPING UP SHARES IN THE COMPANY AS THE STOCK CONTINUES TO HIT NEW HIGHS SIX DIRECTORS AND SENIOR OFFICERS AT THE EDEN NC MAKER OF TOWELS BLANKETS AND LINENS PURCHASED A COMBINED 22000 SHARES BETWEEN MIDDECEMBER AND LATEFEBRUARY RAISING THEIR RESPECTIVE STAKES IN THE COMPANY BY AN AVERAGE 33 RECENT FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THE SHARES WERE PURCHASED AT AN AVERAGE 26 A SHARE WITH PRICES RANGING FROM 25375 TO 2875 A SHARE YESTERDAY FIELDCREST'S THINLY TRADED STOCK HIT A 52WEEK HIGH ON THE NEW YORK STOCK EXCHANGE CLOSING AT 31 A GAIN OF 1 OR 33 DESPITE THE STOCK'S STRONG RUNUP SINCE THE BEGINNING OF THE YEAR IT IS STILL TRADING AT A RELATIVELY LOW MULTIPLE OF AROUND 14 TIMES THE TRAILING FOUR QUARTERS' EARNINGS IT'S RARE TO SEE INSIDERS BUYING AT THE TOP LIKE THIS SAID BOB GABELE PRESIDENT OF CDA/INVESTNET A FORT LAUDERDALE FLA FIRM THAT TRACKS INSIDER ACTIVITY WHAT'S MORE TYPICAL HE SAYS IS FOR INSIDERS TO BUY AGGRESSIVELY AFTER THEIR COMPANY'S SHARES HAVE BEEN BEATEN DOWN FIELDCREST'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER JAMES FITZGIBBONS WAS THE MOST AGGRESSIVE PURCHASER OF THE GROUP BUYING 9000 SHARES AT 2650 A PIECE ON FEB 8 SEC DATA INDICATE MR FITZGIBBONS CURRENTLY HOLDS AROUND 30000 SHARES IN THE COMPANY HE WAS TRAVELING YESTERDAY AND WAS UNAVAILABLE FOR COMMENT THOMAS STAAB THE COMPANY'S CHIEF FINANCIAL OFFICER WHO BOUGHT 1200 SHARES ON FEB 8 AT 2613 A SHARE SAID HE PURCHASED THE SHARES AS A SOUND LONGTERM INVESTMENT HE WOULDN'T ELABORATE ANALYSTS SAY THE COMPANY SEEMS POISED TO RECORD SIGNIFICANT EARNINGS GROWTH THIS YEAR FOLLOWING COSTCUTTING AND DEBTREDUCTION MOVES INDEED FIELDCREST'S STOCK GOT A BOOST LAST MONTH WHEN THE COMPANY BEAT ANALYSTS' EXPECTATIONS FOR THE FOURTH QUARTER ON FEB 2 THE COMPANY REPORTED PERSHARE NET INCOME OF 77 CENTS FOR THE QUARTER ENDED DEC 31 WELL UP ON THE 66CENTSASHARE MEAN ESTIMATE PROVIDED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM AND ON THE 58CENTSASHARE OPERATING PROFIT POSTED A YEAR EARLIER PAMELA SINGLETON AN ANALYST WITH MERRILL LYNCH IN NEW YORK THINKS THE COMPANY WILL REPORT A SOLID INCREASE IN REVENUE AND AN EVEN BIGGER JUMP IN NET FOR THE FIRST QUARTER WE COULD SEE NET AFTER THE PAYOUT OF PREFERRED DIVIDENDS AND ON FEWER SHARES OUTSTANDING OF 45 CENTS A SHARE VS 22 CENTS A YEAR EARLIER MS SINGLETON SAYS TWO FACTORS SEEM TO BE HELPING THE STOCK SHE SAYS DEMAND FOR HOUSEHOLD AND HOMEIMPROVEMENT PRODUCTS HAS BEEN ON THE RISE ONE OF THE FEW RETAIL SECTORS TO SHOW PERSISTENT STRENGTH WHAT'S MORE THERE IS GROWING ANTICIPATION THAT FIELDCREST A MAJOR BUYER OF COTTON WILL SEEK TO PASS ON THE RISING COST OF THE COMMODITY TO CONSUMERS THROUGH ONE OR MORE PRICE INCREASES LATER THIS YEAR THE COMPANY HAS SAID IT PLANS TO PUT THROUGH A 5 PRICE INCREASE AS OF JULY 1 ONE POTENTIAL NEGATIVE FACING FIELDCREST IS THE CITATION OF THE COMPANY LAST WEEK BY THE NATIONAL LABOR RELATIONS BOARD FOR 150 VIOLATIONS OF LABOR LAW FIELDCREST WAS ORDERED BY TWO NLRB JUDGES TO GIVE BACK PAY TO SOME 4000 EMPLOYEES AND 14 DISMISSED WORKERS PAY THAT MAY TOTAL MORE THAN 3 MILLION THE COMPANY HAS SAID IT WILL APPEAL AT LEAST A PORTION OF THE RULINGS WHICH PERTAIN CHIEFLY TO THE FIRING OF 13 WORKERS DURING A 1991 UNIONORGANIZING CAMPAIGN AND TO THE CASE OF A WORKER WHO WAS LAID OFF LAST YEAR MR STAAB THE COMPANY'S CHIEF FINANCIAL OFFICER SAID FIELDCREST ALREADY HAS AGREED TO PAY OUT 15 MILLION TO THE AFFECTED PARTIES AND THAT THE REMAINDER WILL BE APPEALED KAY NORWOOD AN ANALYST WITH BROKERS INTERSTATE/JOHNSON LANE IN CHARLOTTE NC SAYS ANY REMAINING FALLOUT FROM THE LABORLAW RULING PROBABLY WON'T HAVE MUCH OF AN IMPACT ON THE COMPANY'S BOTTOM LINE THIS YEAR SHE SEES FIELDCREST POSTING EARNINGS OF 275 A SHARE THIS YEAR COMPARED WITH 188 A SHARE FROM CONTINUING OPERATIONS IN 1993 ON THE BASIS OF HER 1994 EARNINGS ESTIMATE THE COMPANY'S STOCK IS CURRENTLY TRADING AT AROUND 11 TIMES FORWARD EARNINGS FORECASTS THAT MULTIPLE IS DEFINITELY AT THE LOW END OF THE RANGE FOR THE GROUP OF 15 TEXTILE COMPANIES I COVER SHE SAYS NOTING THAT THE GROUP'S AVERAGE FORWARD PRICEEARNINGS RATIO IS ABOUT 12 TIMES BECAUSE OF THE SHARP APPRECIATION OF THE STOCK MS NORWOOD CURRENTLY RATES FIELDCREST A HOLD SHE REMAINS GENERALLY BULLISH HOWEVER EVEN IF THE ANTICIPATED PRICE INCREASE DOESN'T HOLD IN THE SECOND HALF THE COMPANY HAS INSULATED ITSELF FROM FURTHER COST PRESSURES FROM RAW MATERIALS THIS YEAR SHE SAYS FIELDCREST HAS ALREADY PURCHASED ALL THE COTTON THEY NEED FOR THE WHOLE YEAR THE BIGGER QUESTION IS WHETHER THE PRICE INCREASE CAN HOLD SHE SAYS 9403160110 940316 KEY DEMOCRAT SUGGESTS HEARINGS ON WHITEWATER WASHINGTON REP LEE HAMILTON OF INDIANA AN INFLUENTIAL LAWMAKER ON ETHICAL ISSUES BECAME THE FIRST SENIOR DEMOCRAT TO SUGGEST THE NEED FOR CONGRESSIONAL HEARINGS INTO THE WHITEWATER AFFAIR WHEN A COMPLICATED ISSUE SUCH AS THE WHITEWATER MATTER IS AFFECTING THE PRESIDENT'S AGENDA HE MUST GET THE FACTS OUT QUICKLY AND COMPLETELY SAID MR HAMILTON WHO HEADS THE FOREIGN AFFAIRS COMMITTEE AND PREVIOUSLY LED THE HOUSE INQUIRY INTO THE IRANCONTRA SCANDAL HE NOTED THE INVESTIGATION BY SPECIAL COUNSEL ROBERT FISKE MAY NOT BE MADE PUBLIC FOR SOME TIME AND THAT CONGRESSIONAL HEARINGS REPRESENT ONE POSSIBILITY FOR CLEARING THE AIR MR HAMILTON'S STATEMENT IMMEDIATELY SEIZED UPON BY REPUBLICANS WHO HAVE DEMANDED HEARINGS HEIGHTENED PRESSURE ON PRESIDENT CLINTON AND THE DEMOCRATIC CONGRESSIONAL LEADERSHIP THEY HAVE RESISTED HEARINGS SO FAR CITING MR FISKE'S WARNING AGAINST POSSIBLE INTERFERENCE WITH HIS INVESTIGATION SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE REITERATED HIS OPPOSITION TO HEARINGS AND AIDES TO HOUSE LEADERS INSISTED THAT MR HAMILTON'S REMARKS DIDN'T REPRESENT A WEAKENING IN THE PARTY'S POSITION 9403160109 940316 TEXAS JOURNAL ENTREPRENEURS FLOCK TO THE BIG HOUSE PRISON EXPANSION HAS FIRMS EAGER TO GET A PIECE OF THE ACTION BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL A RAPIDLY GROWING INDUSTRY HAS OUTOFSTATE COMPANIES FLOCKING TO TEXAS AND INSTATE FIRMS SPROUTING TO GET IN ON THE ACTION THE HOT BUSINESS PRISONS AT STAKE IS ONE OF THE BIGGEST PRISON EXPANSIONS THIS COUNTRY HAS EVER SEEN ON FRIDAY THE STATE WILL CONSIDER PROPOSALS FROM PRIVATE COMPANIES TO BUILD AND OPERATE SPACE FOR AS MANY AS 8000 PRISONERS EVENTUALLY DOLING OUT SOME 156 MILLION FOR CONSTRUCTION COSTS AS WELL AS 94 MILLION IN ANNUAL OPERATING REVENUE AND THAT MAY BE JUST THE BEGINNING THE STATE IS PLANNING TO ADD A TOTAL OF 70000 PRISON BEDS OVER THE NEXT TWO YEARS ROUGHLY DOUBLING THE SYSTEM'S CAPACITY AND THERE'S NO END TO THE CONSTRUCTION IN SIGHT IF THE PRIVATESECTOR PROGRAM SUCCEEDS ADVOCATES OF THE CONCEPT SAY MORE PRISON BUSINESS COULD BE THROWN INTO THE PRIVATE POT BUT IT'S A BIG IF FOR ONE THING IT ISN'T YET CLEAR WHETHER THE PRIVATE FACILITIES SAVE THE STATE MONEY ONE OF THEIR MAIN SELLING POINTS IN ADDITION TEXANS LIVING IN URBAN AREAS HAVE BEEN LESS THAN ENAMORED OF MANY OF THE COMPANIES' PLANS TO BUILD PRISONS CLOSER TO WHERE THEY LIVE AND SOME EXPERTS WORRY THAT INEXPERIENCED ENTREPRENEURS WILL JUMP INTO THE BUSINESS AND BUILD POORLY RUN INSTITUTIONS THAT COULD ULTIMATELY COST THE TAXPAYERS BUNDLES OF MONEY AND JEOPARDIZE PUBLIC SAFETY ALREADY A FEW PRIVATE COMPANIES ARE PLANNING TO PUT UP PRISONS ON SPECULATION HOPING THE STATE WILL TAP THEM ONCE THE BUILDINGS ARE UP THE RISK IS SOME FLYBYNIGHT COMPANY THAT'S NEVER DONE ANYTHING IN CORRECTIONS WILL BE ABLE TO SECURE FINANCING AND BUILD A FACILITY THAT WILL APPEAL TO THE STATE SAYS CHARLES W THOMAS PROFESSOR OF THE PRIVATE CORRECTIONS PROJECT AT THE UNIVERSITY OF FLORIDA GAINESVILLE PEOPLE IN THE PRIVATE CORRECTIONS INDUSTRY ARE ANXIOUS ABOUT WHAT THE POSSIBLE OUTCOME WOULD BE OF AN UNDERCAPITALIZED INEXPERIENCED COMPANY TRYING TO RUN SUCH A FACILITY DESPITE THE CONCERNS PRIVATE PRISONS ARE BOOMING AND FOR A SIMPLE REASON THE STATE SYSTEM IS STRAPPED FOR SPACE AND TEXAS IS BEING FINED THOUSANDS OF DOLLARS A DAY BY A FEDERAL COURT FOR PRISON CROWDING WE'RE IN A TERRIBLE CRISIS SAYS ELLEN HALBERT OF AUSTIN A MEMBER OF THE TEXAS PRISON BOARD OUR PLATE IS VERY FULL WITH WHAT WE'RE BUILDING ON OUR OWN PRIVATE PRISON CONTRACTORS CLAIM THEY CAN DELIVER THE GOODS MORE QUICKLY AND ECONOMICALLY THAN THE STATE PRISON SYSTEM ON THE SURFACE THAT APPEARS TO BE THE CASE THE STATE HAS ALLOTTED 19455 PER BED FOR CONSTRUCTION AND STATE OFFICIALS SAY TWO PRIVATE PROPOSALS ALREADY HAVE COME IN AT 17000 PER BED WHICH WOULD TRANSLATE INTO A SAVING OF 147 MILLION FOR A 6000BED PROJECT THAT CONSTITUTES THE BULK OF THE PRIVATE BUILDING IN ADDITION OPERATING COSTS FOR THE PRIVATE FACILITIES ARE EXPECTED TO BE 10 TO 33 CHEAPER THAN FOR TRADITIONAL STATE PRISONS BUT PRIVATIZATION CRITICS SAY THOSE NUMBERS ARE MISLEADING FOR ONE THING THEY SAY PRIVATE PRISONS GENERALLY GET PRISONERS WHO ARE LESS DANGEROUS OR ON THE VERGE OF RELEASE AND THEREFORE ARE CHEAPER TO MAINTAIN IN ADDITION MEDICAL COSTS OF SICK INMATES AFTER THE FIRST 48 HOURS ARE COVERED BY THE STATE NOT THE PRIVATE COMPANIES THESE AND OTHER FACTORS INCLUDING THE HIGHER COST OF STATE PSYCHIATRIC FACILITIES AND WOMEN'S PRISONS INFLATE THE STATE'S AVERAGE COST ANOTHER PROBLEM FACING THE PRIVATE PRISONS IS LOCATION WHILE MOST STATERUN PRISONS ARE BUILT IN RURAL AREAS WHERE THEY ARE EMBRACED FOR THEIR ECONOMICDEVELOPMENT POTENTIAL THE LATEST FACILITIES ARE PLANNED FOR URBAN AREAS IT'S A TEST THAT LAWMAKERS WANTED OF SOCALLED COMMUNITYBASED CORRECTIONS THE THEORY BEHIND IT BUILD JAILS EXCLUSIVELY FOR NONVIOLENT OFFENDERS PUT THEM IN URBAN AREAS WHERE THE CRIME RATE IS HIGHEST SO OFFENDERS CAN MAINTAIN CONTACT WITH FRIENDS AND FAMILY WHILE USING COMMUNITY RESOURCES FOR EDUCATION WORK AND DRUGTREATMENT PROGRAMS IN AN EFFORT TO REDUCE RECIDIVISM BUT PEOPLE IN THOSE AREAS AREN'T EAGER TO PARTICIPATE IN THE TEST IN RECENT WEEKS CORRECTIONS CORP OF AMERICA BASED IN NASHVILLE TENN FACED STRONG COMMUNITY OPPOSITION TO PRISON SITES IN BOTH HARRIS COUNTY AND GRAND PRAIRIE NEAR DALLAS IN TRAVIS COUNTY PLANS TO PUT THE STATE JAIL IN EAST AUSTIN HAVE SPARKED PROTESTS FROM THE PREDOMINANTLY MINORITY NEIGHBORHOOD IT'S NOT SOMETHING WE HAVEN'T RUN INTO IN OTHER PLACES SAYS PEGGY WILSON LAWRENCE A SPOKESMAN FOR CORRECTIONS CORP A LOT OF TIMES EMOTION TAKES OVER AND PEOPLE REALLY CAN'T LISTEN TO THE FACTS AND CONSIDER THE PROJECT WITH AN OPEN MIND MOREOVER WINNING PRIVATE PRISON CONTRACTS ISN'T EASY EVEN FOR ESTABLISHED COMPANIES PRIVATE CONTRACTORS SAY THE STATE IMPOSES MORE STRINGENT REQUIREMENTS ON PRIVATE FACILITIES THAN IT DOES ON ITS OWN PRISONS FOR INSTANCE PRIVATE PRISONS ARE REQUIRED TO GO THROUGH A TEDIOUS NATIONAL ACCREDITATION PROCESS THAT ISN'T REQUIRED OF STATEOPERATED PRISONS WHATEVER THE DIFFICULTIES THE RACE TO WIN THE BUSINESS IS CLEARLY ON AND TEXAS COMPANIES AS RELATIVE NEWCOMERS HAVE IT DOUBLY HARD CORRECTIONS CORP AND WACKENHUT CORP'S WACKENHUT CORRECTIONS UNIT IN CORAL GABLES FLA HOLD HALF OF THE PRIVATE PRISON MARKET NATIONWIDE AND USUALLY ARE TOP CONTENDERS FOR ANY NEW DEALS TRAVIS AND JACK COUNTIES TWO SITES FOR THE NEW ROUND OF PRIVATE CONSTRUCTION HAVE RECOMMENDED WACKENHUT STATE OFFICIALS HAVE THE FINAL SAY BUT SMALLER INSTATE COMPANIES ARE MAKING INROADS NORTH VILLAGE CORP OF HOUSTON OPERATED BY TWO FORMER OFFICEBUILDING DEVELOPERS HAS FOCUSED ON THE DEVELOPMENT SIDE PAIRING UP WITH AN ESTABLISHED PRISONMANAGEMENT FIRM TO DO THE REST IT IS THE CHOICE OF DALLAS COUNTY FOR A NEW STATERUN JAIL AND ONE OF TWO FINALISTS PUT FORWARD FOR A STATE FACILITY BY HARRIS COUNTY WHERE COMPANY OFFICIALS BUILT A COUNTYRUN 4000BED FACILITY OTHER NEW COMPANIES HOPE BACKGROUND AND CONTACTS IN THE CORRECTIONS BUSINESS WILL HELP THEM LAND NEW PRIVATE PRISON DEALS AUSTINBASED SOUTHERN CORRECTIONS INC A THREEMONTHOLD COMPANY STILL HOPING FOR ITS FIRST CORRECTIONS CONTRACT AND MIDLANDBASED TECHNICAL APPROACH TO SECURE CONFINEMENT INC BOTH WERE STARTED BY FORMER OFFICIALS IN THE STATE AND FEDERAL PRISON SYSTEM PERHAPS THE SAVVIEST NEW PRISON COMPANY IS CORRECTIONS SOLUTIONS INC THE DALLAS COMPANY'S CHAIRMAN IS CHARLES TERRELL FORMER TEXAS PRISON BOARD CHAIRMAN BUT IT IS PREDOMINANTLY OWNED BY MINORITY BUSINESSMEN TO TAKE ADVANTAGE OF THE STATE'S MINORITY BUSINESS CONTRACTING GOALS CORRECTIONS SOLUTIONS HAS SUBMITTED A BID FOR A 1500 TO 2000BED STATE JAIL FACILITY TO BE LOCATED IN WACO CORNELL COX GROUP LP OF HOUSTON A THREEYEAROLD COMPANY THAT MANAGES A 300BED FACILITY IN RHODE ISLAND IS A FINALIST FOR THE HARRIS COUNTY STATE JAIL AND HAS ALSO SUBMITTED A BID FOR A 1500 TO 2000BED STATE CONTRACT PRESIDENT NORMAN COX SAYS THAT DESPITE 23 YEARS OF EXPERIENCE IN BOTH PUBLIC AND PRIVATE CORRECTIONS IT HAS PROVED TOUGH TO BREAK INTO THE TEXAS MARKET THERE ARE MORE FIRMS OUT THERE TODAY THAN EVER BEFORE HE SAYS THE COMPETITION IS DRIVING SOME COMPANIES TO EXTREMES IN PURSUIT OF A PIECE OF THE BUSINESS A FEW SMALLER COMPANIES ARE BUILDING PRISONS ON SPECULATION PUTTING UP FACILITIES IN HOPES THAT STATE AND LOCAL GOVERNMENTS WILL CONTRACT WITH THEM AFTER THE SPACE IS BUILT THE PRACTICE OCCURS ALMOST EXCLUSIVELY IN TEXAS SAYS MR THOMAS THE FLORIDA PROFESSOR AND IT'S HAPPENING DESPITE A NOTORIOUS PRISONSONSPEC DEBACLE IN 1989 NGROUP SECURITIES INC PERSUADED SIX TEXAS COUNTIES TO SET UP CORPORATIONS AND BORROW 75 MILLION TO FINANCE 500BED PRISON UNITS BACKING THE DEAL WERE DALLAS ATTORNEY RAY HUTCHISON HUSBAND OF REPUBLICAN SEN KAY BAILEY HUTCHISON WHO SERVED AS BOND COUNSEL TO THE COUNTY CORPORATIONS AND FORMER DEMOCRATIC GOV MARK WHITE WHOSE LAW FIRM REPRESENTED THE UNDERWRITER THE PRISONS WERE BUILT BUT THE STATE INITIALLY REFUSED TO USE THEM BECAUSE THEY DIDN'T MEET STATE STANDARDS THE STATE LATER BOUGHT THEM FOR OTHER USES FOR 50 CENTS ON THE DOLLAR A LAWSUIT FILED BY THE BONDHOLDERS IS STILL PENDING IN US DISTRICT COURT IN HOUSTON DESPITE THOSE TROUBLES TEXAS' PRISON CROWDING IS ENOUGH TO PERSUADE OTHER COMPANIES TO RISK SPECULATIVE BUILDING ONE COMPANY WRI GROUP INC OF SHREVEPORT LA STATES IN OFFERING DOCUMENTS THAT IT HAS NO EXPERIENCE DEVELOPING A JAIL AND NO GUARANTEE OF INMATES NEVERTHELESS IT HOPES TO SELL 317 MILLION IN CERTIFICATES OF PARTICIPATION TO BUILD A JAIL IN COLEMAN COUNTY FOR THE STATE'S FELONY BACKLOG NOW CROWDING OTHER JAILS IN OTHER COUNTIES GREG EDEN SENIOR VICE PRESIDENT OF STEPHENS LEASING INC WHICH IS ARRANGING FINANCING FOR THE PROJECT CONCEDES THERE ARE NO GUARANTEES BUT SAYS TEXAS' JAIL CROWDING MAKES THE PLAN A GOOD BET BOBBY ROSS GROUP INC OF AUSTIN HAS SPECIALIZED IN SALVAGING STRUGGLING FACILITIES THAT WERE BUILT ON SPEC SO IT HAS SEEN OTHER INVESTORS GET BURNED BUT IT TOO IS THINKING ABOUT BUILDING A 500 TO 1000BED WOMEN'S FACILITY ON SPEC WE CALL THEM FIELD OF DREAMS' JAILS SAYS BOBBY ROSS THE COMPANY'S PRESIDENT WE THINK THE TIME'S PROBABLY RIGHT TO BUILD ONE 9403160108 940316 TEXAS JOURNAL LIBERTY SPORTS LONG A SECONDSTRINGER ON NATIONAL SCENE GETS ITS CHANCE TO PLAY BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS RESPECT HASN'T COME EASILY TO LIBERTY SPORTS INC ALTHOUGH LIBERTY'S ALLIANCE OF 13 REGIONAL SPORTS NETWORKS IS THE LARGEST SOURCE OF TELEVISION REVENUE FOR MAJOR LEAGUE BASEBALL ABOUT 100 MILLION A YEAR LIBERTY SPORTS PRESIDENT ED FRAZIER SAYS HE HAS NEVER BEEN GIVEN THE OPPORTUNITY TO MEET WITH BASEBALL'S TV COMMITTEE BECAUSE THE LEAGUE DOESN'T VIEW LIBERTY AS A NATIONAL PLAYER THE NATIONAL HOCKEY LEAGUE REBUFFED THE COMPANY'S BID FOR TV RIGHTS MORE THAN A YEAR AGO IT SIGNED WITH CAPITAL CITIES/ABC INC'S ESPN ALTHOUGH ESPN'S OFFER WAS LOWER BECAUSE LEAGUE EXECUTIVES WEREN'T CERTAIN THAT LIBERTY'S NATIONAL AUDIENCE WAS AS LARGE AS CLAIMED EVEN ADMINISTRATORS AT THE NATIONAL BASKETBALL ASSOCIATION LONG LIBERTY'S STRONGEST SUPPORTER HAVE TOLD MR FRAZIER THAT LIBERTY WON'T BE CONSIDERED ONE OF SPORTS TV'S POWER PLAYERS UNTIL THE COMPANY HAS ADEQUATE NATIONAL DISTRIBUTION CAPABILITY AND CAN GENERATE ENOUGH REVENUE TO BE IMPORTANT TO A LEAGUE DESPITE THE FACT THAT LIBERTY'S NETWORKS GENERATE THE THIRDLARGEST SUM FOR THE BASKETBALL LEAGUE ABOUT 60 MILLION A YEAR NBC WHICH TOPS THE LIST IS PAYING THE NBA 1875 MILLION A YEAR UNDER ITS CONTRACT BUT RESPECT APPEARS TO BE AT HAND FOR THE DALLAS PROVIDER OF SPORTS PROGRAMMING LAST WEEK TWO WEEKS AFTER THE BIG EIGHT CONFERENCE EXPANDED TO INCLUDE FOUR SOUTHWEST CONFERENCE UNIVERSITIES LIBERTY A UNIT OF DENVER'S LIBERTY MEDIA CORP WON THE NATIONAL CABLE RIGHTS TO THE NEW CONFERENCE'S FOOTBALL GAMES LIBERTY'S AGGRESSIVE OFFER 425 MILLION FOR A FIVEYEAR CONTRACT BEGINNING IN 1996 BEAT OUT RIVALS ESPN AND RAYCOM INC THIS DEAL IS THEIR STEPPINGSTONE TO BECOMING A MAJOR PLAYER SAYS JOHN MANSELL SENIOR ANALYST AT PAUL KAGAN ASSOCIATES A CARMEL CALIF MEDIA ANALYST THEY'LL GET MORE RESPECT AS A BIDDER IN NATIONAL PACKAGES FROM NOW ON FOR LIBERTY WHICH ALREADY HAS NATIONAL CABLE RIGHTS FOR PACIFIC 10 CONFERENCE FOOTBALL LANDING THE NEW LEAGUE WAS AS IMPORTANT AS THE NFL DEAL WAS TO THE FOX NETWORK MR FRAZIER SAYS WINNING THE RIGHTS ALLOWS LIBERTY FOR THE FIRST TIME TO OFFER A PACKAGE OF PRIMETIME SATURDAY COLLEGE FOOTBALL THROUGH ITS PRIME/SPORTSCHANNEL NETWORKS UNIT A NATIONAL NETWORK SUPPLYING ITS LOCAL AFFILIATES THAT'S AN ATTRACTIVE DRAW FOR ADVERTISERS AND MAY PIT LIBERTY DIRECTLY AGAINST ESPN WHOSE STRONG POINT ON FALL SATURDAYS IS ITS COLLEGE FOOTBALL COVERAGE LIBERTY'S BID WAS CONSIDERED HIGH FOR A COLLEGE FOOTBALL CABLE PACKAGE BUT THE COMPANY BELIEVES THAT BASED ON ITS TALKS WITH ADVERTISERS IT CAN RECOUP ITS COSTS WITH THE BID LIBERTY BASICALLY LOCKED IN TV MARKETS IN HOUSTON DALLAS DENVER KANSAS CITY AND ST LOUIS BECAUSE OF THE STRONG FOLLOWINGS FOR THE CONFERENCE TEAMS IN THOSE REGIONS BUT WHILE ESPN'S NATIONAL BROADCASTS HAVE CREATED A NAME FOR MORE THAN A DECADE THAT SPORTS FANS ASSOCIATE WITH TELEVISED ATHLETICS LIBERTY'S NAME THUS FAR HAS BEEN VIRTUALLY UNKNOWN IN TV SPORTS LIBERTY'S PROGRAMMING FOR THE MOST PART ISN'T AIRED NATIONALLY AND ITS NAME DOESN'T APPEAR ON CABLE LISTINGS NEVERTHELESS LIBERTY'S NETWORKS SCATTERED ACROSS EVERY MAJOR MARKET IN THE COUNTRY ARE MAINSTAYS WITH LOCAL SPORTS FANS AND IN REGIONAL CIRCLES ARE CLOSING IN ON ESPN THERE'S HOME SPORTS ENTERTAINMENT IN HOUSTON AND DALLAS SUNSHINE NETWORK IN FLORIDA PRIME SPORTS NETWORK ROCKY MOUNTAIN IN DENVER AND OTHERS IN PHILADELPHIA CHICAGO THE NORTHWEST AND THE WEST COAST ALL TOLD LIBERTY'S AFFILIATES PULL IN ABOUT 44 MILLION CABLE SUBSCRIBERS AND THE COMPANY GENERATES ABOUT 170 MILLION A YEAR IN AD REVENUE THOUGH ESPN HAS A SINGLE FEED NATIONWIDE LIBERTY NETWORKS HAVE THE ABILITY TO TAILOR THEIR BROADCASTS TO THE LOCAL MARKETS SHOWING THE GAMES OF THEIR AREAS' COLLEGE AND PRO TEAMS LIBERTY ALSO IS THE LARGEST PROVIDER OF SPORTS PROGRAMMING IN THE WORLD THANKS TO THE COMPANY'S PRIME INTERNATIONAL UNIT WHICH PICKS UP AND DISTRIBUTES WORLDWIDE EVERYTHING FROM CRICKET IN BRITAIN TO BADMINTON IN INDIA TO SOCCER IN SOUTH AMERICA WHILE RESPECT HAS BEEN HARD TO COME BY LIBERTY HAS IN ITS CORNER MR FRAZIER A 41YEAROLD NATIVE OF BIG SPRING CONSIDERED BY MANY TO BE ONE OF THE FOUNDING FATHERS OF REGIONAL SPORTS NETWORKS HE WAS TAPPED MORE THAN A DECADE AGO BY WARNER AMEX A JOINT VENTURE BETWEEN WARNER COMMUNICATIONS INC AND AMERICAN EXPRESS CO THAT SUBSEQUENTLY BECAME PART OF TIME WARNER INC TO FOUND ONE OF THE COUNTRY'S FIRST SUCH NETWORKS HOME SPORTS ENTERTAINMENT WHICH PASSED THROUGH SEVERAL OWNERS AND GREW INTO LIBERTY MR FRAZIER HAS SINCE PLAYED A LARGE PART IN THE BIRTH OF SIMILAR NETWORKS AND FOUR YEARS AGO HELPED BRING TOGETHER PRIME NETWORK AND SPORTSCHANNEL AMERICA TO FORM PRIME/SPORTCHANNEL NETWORKS STRIVING FOR THAT SHELF IS A CHALLENGE MR FRAZIER IS ACCUSTOMED TO HIS CAREER WAS PUNCTUATED BY HOME SPORTS ENTERTAINMENT'S NEARDEATH IN 1984 WHEN THE FINANCIALLY STRAPPED NETWORK WAS 15 MINUTES FROM GOING DARK PERMANENTLY AFTER THREE MONTHS OF SALES PITCHES FAILED TO ATTRACT A RESCUER WARNER AMEX WAS UNABLE TO HELP THE COMPANY JOHN MCMULLEN THEN THE OWNER OF THE HOUSTON ASTROS WHOSE GAMES HAD BECOME A STAPLE OF HSE BROADCASTS RESCUED THE NETWORK WITH A CASH INFUSION TODAY LIBERTY IS ON STURDIER FOOTING ITS PARTNERS INCLUDE MR MCMULLEN NOW OWNER OF THE NEW JERSEY DEVILS HOCKEY TEAM AND GROUP W SERVICES INC A UNIT OF WESTINGHOUSE ELECTRIC CORP TELECOMMUNICATIONS INC THE CABLETV GIANT THAT SPUN OFF LIBERTY MEDIA IN 1991 STILL OWNS A SMALL STAKE IN THE PARENT COMPANY MR FRAZIER MODESTLY ATTRIBUTES MUCH OF LIBERTY SPORTS' SUCCESS TO THOSE AROUND HIM WHO DO THE WORK BUT BILL DANIELS SEES IT DIFFERENTLY MR DANIELS WHO FOUNDED A SPORTS NETWORK IN LOS ANGELES IN THE EARLY '80S AND JOINED WITH MR FRAZIER IN STARTING THE PRIME NETWORK SAYS I SIGNED ON WITH ED THE FIRST TIME I MET HIM BECAUSE HE'S GOT WHAT IT TAKE TO BE A VISIONARY HE'LL MAKE LIBERTY A NATIONAL POWER THE BIG EIGHT IS JUST THE FIRST STEP 9403160107 940316 WOULD YOU BUY A NEW DINETTE FROM A PRESIDENTIAL LOOKALIKE BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL PRESIDENT CLINTON MAY BE HAVING TROUBLE SELLING HIS HEALTH PLAN TO CONGRESS BUT A CANADIAN RETAILER IS BETTING THAT HE WILL BE GREAT AT SELLING SOFABEDS AND STOVES FOR A NEW SERIES OF NEWSPAPER AND TELEVISION ADS CLAIMING THE LOWEST PRICES IN CANADA OR THE US BAD BOY FURNITURE & APPLIANCES HIRED PRESIDENTIAL IMPERSONATOR TIM WATERS OF TAMPA FLA TO PLAY MR CLINTON THE ROLE ISN'T AN EXACTING ONE MR WATERS STANDS BEHIND THE STORE'S MANIC OWNER BLAYNE BAD BOY LASTMAN WHILE THE LATTER OFFERS CUSTOMERS A REFUND IF THEY CAN FIND A CHEAPER DINETTE SET OR MATTRESS THE FAKE PRESIDENT'S SOLE SPEAKING LINE COMES AT THE END WHEN HE DECLAIMS THAT NOOOOBODY OFFERS BETTER DEALS THAN BAD BOY THE WHITE HOUSE ISN'T AMUSED IN A STIFF LETTER TO THE RETAILING CHAIN WHICH HAS THREE STORES IN THE TORONTO AREA MARVIN KRISLOV SPECIAL COUNSEL TO THE PRESIDENT ASKED MR LASTMAN TO CEASE AND DESIST ALL UNAUTHORIZED USES OF THE LIKENESS OF THE PRESIDENT OF THE UNITED STATES OF AMERICA IN ADVERTISING OF COMMERCIAL SERVICES OR PRODUCTS TOO BAD SAYS MR LASTMAN LAST TIME I CHECKED THIS WAS CANADA NOT THE FIFTYFIRST STATE HE SAYS MAYBE THE PRESIDENT IS TRYING TO PROTECT AMERICAN RETAILERS FROM SOME TOUGH COMPETITION BUT ARTHUR JONES DEPUTY PRESS SECRETARY AT THE WHITE HOUSE SAYS THE ONLY THING THAT'S BEING PROTECTED IS THE PRESIDENT'S DIGNITY WE DON'T THINK IT'S APPROPRIATE FOR THE PRESIDENT'S IMAGE TO BE USED IN THIS WAY HE SAYS SO FAR MR LASTMAN ISN'T IMPRESSED BY THE WHITE HOUSE MISSIVE WHICH INCLUDED FOR HIS PERUSAL A COPY OF THE COUNCIL OF BETTER BUSINESS BUREAUS' DOS AND DON'TS OF ADVERTISING COPY BAD BOY USES POLITICIANS' IMAGES ALL THE TIME HE ARGUES LOOK WE'VE USED THE IMAGE OF THE MAYOR OF NORTH YORK JUST OUTSIDE TORONTO IN FACT THE MAYOR IS BLAYNE'S FATHER MEL LASTMAN AND POPS UP FREQUENTLY ON THE TV ADS THE YOUNGER MR LASTMAN SAYS HE'LL PROBABLY REPLY TO THE LETTER BUT DOESN'T PLAN TO STOP RUNNING THE ADS INSTEAD HE SAYS I'D LIKE TO OFFER MR CLINTON A GREAT DEAL ON SOME FURNITURE MR JONES DECLINES TO SAY WHAT KIND OF ACTION THE WHITE HOUSE COULD TAKE AGAINST A FOREIGN RETAILER IN THE PAST MR JONES SAYS PEOPLE OF GOODWILL HAVE RECOGNIZED THE SERIOUSNESS OF THIS ISSUE 9403160106 940316 SCECORP AGREES TO BUY WINDPOWER ELECTRICITY ROSEMEAD CALIF SCECORP AGREED IN PRINCIPLE TO BUY HUNDREDS OF MILLIONS OF DOLLARS OF ELECTRICITY FROM AN INDEPENDENT WINDPOWER COMPANY ENDING A STALEMATE OVER THE FUTURE OF SUCH ALTERNATIVEENERGY PROJECTS IN CALIFORNIA BUT UNLIKE STATEIMPOSED PROPOSALS CALLING FOR MORE RAPID CONSTRUCTION OF GENERATING PLANTS SCE SAID MOST OF THE POWER WOULDN'T BE AVAILABLE UNTIL THE END OF THE DECADE THE UTILITY ALSO SAID A PORTION OF THE PURCHASE CONTRACTS ENVISIONED UNDER ITS PROPOSAL IS SUBJECT TO PRIOR APPROVAL OF ITS CUTOMERS THE MOVE BY THE UTILITY WHICH SIGNED A PRELIMINARY AGREEMENT TO BUY AS MUCH AS 750 MEGAWATTS OF POWER FROM SAN FRANCISCOBASED KENETECH CORP FOLLOWS A BITTER FIGHT OVER WHO WILL BUILD NEW GENERATING CAPACITY IN CALIFORNIA THE PROPOSED PLANTS WOULD COST A TOTAL OF ABOUT 750 MILLION SCE'S ANNOUNCEMENT CAME THE DAY BEFORE STATE UTILITY REGULATORS ARE SLATED TO CONSIDER ORDERING THE GIANT UTILITY TO SIGN LONGTERM SUPPLY CONTRACTS WITH INDEPENDENT PRODUCERS BY MOVING ON ITS OWN TO ACQUIRE ABOUT 60 OF THE RENEWABLE ENERGY CAPACITY REQUIRED BY THE STATE SCE HOPES TO PERSUADE REGULATORS TO REFRAIN FROM MANDATING ADDITIONAL PURCHASES 9403160105 940316 US INVESTIGATES SON OF ADVISER TO TIME WARNER ABOODI SAID TO BE SUBJECT OF CIVIL AND CRIMINAL INSIDER TRADING INQUIRIES BY JOHNNIE L ROBERTS AND LAURIE P COHEN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE SON OF ODED ED ABOODI THE DEALMAKING ADVISER TO TIME WARNER INC IS THE SUBJECT OF FEDERAL CRIMINAL AND CIVIL INVESTIGATIONS INTO INSIDER TRADING IN THE COMPANY'S STOCK ACCORDING TO PEOPLE FAMILIAR WITH THE INVESTIGATION THE US ATTORNEY IN MANHATTAN AND THE SECURITIES AND EXCHANGE COMMISSION ARE INVESTIGATING DAVID ABOODI TWO PEOPLE CLOSE TO THE MATTER INDICATED THE YOUNGER MR ABOODI COULD BE CHARGED AS EARLY AS NEXT WEEK MR ABOODI A VICE PRESIDENT AT BERKSHIRE BANK DIDN'T RESPOND TO MESSAGES LEFT AT HIS OFFICE THE SEC DECLINED COMMENT AS DID A SENIOR OFFICIAL OF THE US ATTORNEY'S OFFICE THE SENIOR MR ABOODI DIDN'T RESPOND TO A MESSAGE AND A TIME WARNER SPOKESMAN SAID THE COMPANY HAD NO COMMENT THE SPOKESMAN ADDED THAT THE SENIOR MR ABOODI WHOSE INVESTMENT BANKING FIRM IS AT TIME WARNER HEADQUARTERS WASN'T AVAILABLE TO COMMENT THE EXISTENCE OF THE THE CIVIL INVESTIGATION BY THE SEC WAS FIRST DISCLOSED IN A NEW BOOK MASTER OF THE GAME WHICH CHRONICLES THE LIFE OF STEVE ROSS THE FOUNDER AND CHAIRMAN OF WARNER COMMUNICATIONS INC AND ARCHITECT OF ITS MERGER WITH TIME INC IN 1989 MR ROSS WHO BECAME CHAIRMAN AND COCEO OF TIME WARNER DIED IN 1992 ACCORDING TO THE BOOK BY CONNIE BRUCK THAT INQUIRY BEGAN IN 1992 AFTER DAVID ABOODI TRADING FOR THE ABOODI FAMILY'S ACCOUNT TRADED TIME WARNER STOCK AT A PROPITIOUS MOMENT THE BOOK SAYS THE SEC INVESTIGATION WAS SAID TO BE ALSO EXPLORING THE POSSIBLE ROLE OF ED ABOODI IN THE TRADE CARRIED OUT BY HIS SON THE SENIOR MR ABOODI WAS ONE OF MR ROSS'S CLOSEST ADVISERS UNDER AN UNUSUAL ARRANGEMENT WHEN MR ROSS HEADED THE COMPANY TIME WARNER PAID MR ABOODI MILLIONS OF DOLLARS IN FEES AS AN OUTSIDE INVESTMENT BANKER WHILE AT THE SAME TIME PAYING HIM AND HIS STAFF SALARIES AND BENEFITS AS TIME WARNER EMPLOYEES MR ABOODI ALSO WAS GIVEN LUCRATIVE STOCK OPTIONS IN HIS DUAL ROLE MR ABOODI WIELDED BROAD INFLUENCE AT TIME WARNER NEGOTIATING THE TIME WARNER DEAL AND CRAFTING INCENTIVE PAY PLANS AND OTHER PERSONAL FINANCIAL DEALINGS FOR SOME OF THE COMPANY'S TOP EXECUTIVES UNDER MR ROSS'S SUCCESSOR GERALD LEVIN MR ABOODI HAS CONTINUED AS AN INFLUENTIAL ADVISER THOUGH MR LEVIN TERMINATED HIM AS AN INSIDE EMPLOYEE MR LEVIN HOWEVER RETAINED MR ABOODI AND HIS INVESTMENT BANKING FIRM ALPINE CAPITAL GROUP AS THE COMPANY'S PRIMARY OUTSIDE ADVISER ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER MR LEVIN INFORMED SOME BOARD MEMBERS IN DECEMBER OR JANUARY ABOUT THE INVESTIGATION THE TIME WARNER SPOKESMAN DECLINED TO COMMENT ON THAT POINT HOWEVER 9403160104 940316 A TYPING BRUSHUP MIGHT BE IN ORDER FOR A MAD GENIUS' CHILEAN FUTURES TRADER TAPS BUY' INSTEAD OF SELL' LOSES MILLIONS BECOMES A VERB BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL SANTIAGO CHILE LAST SEPTEMBER JUAN PABLO DAVILA WAS JUST ANOTHER YOUNG STRESSEDOUT FUTURES TRADER WORKING OVERTIME FOR HIS COMPANY BUYING AND SELLING METALS CONTRACTS AT ALL HOURS TODAY HE IS CHILE'S MOST INFAMOUS YUPPIE A SPECULATOR WHO SECRETLY LOST AT LEAST 207 MILLION OF THE TAXPAYERS' MONEY IN A FEW SHORT MONTHS AMONG THE GREAT SCOUNDRELS AND FOOLS OF CHILEAN HISTORY THERE WILL BE A PLACE FOR MR DAVILA AND HIS COMPUTER DECLARES FERNANDO MOLINA A POLITICIAN WHO SERVES ON THE BOARD OF CODELCO THE STATEOWNED COPPER COMPANY CODELCO EMPLOYED MR DAVILA AS ITS CHIEF OF FUTURES TRADING UNTIL JANUARY WHEN THE DEBACLE WAS REVEALED IT ALL STARTED WITH WHAT MR DAVILA SAID IN SWORN TESTIMONY WAS A SLIP OF THE HAND WHILE TYPING A RECORD OF OVERSEAS FUTURES TRANSACTIONS INTO HIS COMPUTER HE RECORDED SEVERAL CONTRACTS TO SELL AS CONTRACTS TO BUY FUTURES CONTRACTS SET THE PRICES FOR THE PURCHASE OR SALE OF A GIVEN QUANTITY OF A COMMODITY AT A SPECIFIED DATE IN THE FUTURE THAT TYPING ERROR AND MR DAVILA'S ILLFATED EFFORTS TO QUIETLY UNDO THE DAMAGE WITH A SPECULATIVE TRADING BINGE ON THE LONDON METALS EXCHANGE LED MR DAVILA TO SQUANDER THE EQUIVALENT OF 05 OF CHILE'S ANNUAL GROSS NATIONAL PRODUCT LOSING SO MUCH TAXPAYERS' MONEY HAS BROUGHT THE 34YEAROLD TRADER THE KIND OF NOTORIETY USUALLY RESERVED FOR MASS MURDERERS SUDDENLY HIS ITALIAN SUITS PRODIGIOUS COFFEE INTAKE HEAVY SMOKING WORKAHOLIC TENDENCIES EVEN THE KIND OF COMPUTER HE USED AT CODELCO ARE COMING UNDER THE MAGNIFYING GLASS OF CHILE'S PRESS EDITORIAL CARTOONISTS PORTRAY A WILDEYED MR DAVILA KICKING UP A MUSHROOM CLOUD WITH HIS TASSELED LOAFERS AND WIELDING A COMPUTER KEYBOARD LIKE A CHAIN SAW A RADIO PERSONALITY COINED A NEW VERB FROM HIS NAME DAVILAR LOOSELY TRANSLATED AS TO BOTCH THINGS UP MISERABLY EAGER FOR INSIGHTS INTO THE CHARACTER OF THE MAN WHO GAMBLED AWAY SO MUCH A SANTIAGO NEWSPAPER COMMISSIONED A GRAPHOLOGIST TO STUDY MR DAVILA'S HANDWRITING AND AN ASTROLOGER TO INTERPRET HIS ZODIAC CHART THE HANDWRITING EXPERT FOUND MR DAVILA EMOTIONALLY UNSTABLE THE ASTROLOGER PRONOUNCED THE PISCEAN A MAD GENIUS PROCEEDING ALONG MORE CONVENTIONAL LINES ARE EIGHT SEPARATE INVESTIGATIONS INTO MR DAVILA'S TRADING ACTIVITIES BY ORGANIZATIONS RANGING FROM THE CHILEAN DEFENSE MINISTRY WHICH BY LAW RECEIVES 10 OF CODELCO'S SALES TO INTERPOL THE INTERNATIONAL LAWENFORCEMENT NETWORK AUTHORITIES HAVEN'T FOUND EVIDENCE THAT MR DAVILA IN ANY WAY PROFITED FROM HIS RUINOUS DEALINGS THOUGH THEY HAVEN'T DISMISSED THE POSSIBILITY A FEW DAYS AGO MR DAVILA WAS TAKEN INTO POLICE CUSTODY FOR THE FIRST TIME SINCE THE SCANDAL BECAME KNOWN HE COULD BE CHARGED WITH CRIMINAL NEGLIGENCE OR OTHER FELONIES AS EARLY AS TODAY AN ERROR OF THAT SIZE CAN'T BE COMMITTED ONLY BY PUTTING A FINGER ON THE WRONG COMPUTER KEY SAYS CODELCO'S NEW PRESIDENT JORGE RODRIGUEZ GROSSI WHO TOOK OFFICE AS PART OF A MANAGEMENT HOUSECLEANING IN WHICH SEVERAL CODELCO EXECUTIVES GOT THE BOOT AFTER THE SCANDAL BROKE DAVILA IS GOING TO HAVE TO PROVE IT WAS AN ERROR ASSERTS MR RODRIGUEZ MR DAVILA WASN'T AVAILABLE FOR INTERVIEWS HIS ATTORNEY JORGE GUERRERO NOTES THAT HIS CLIENT IS COOPERATING WITH AUTHORITIES IN ALL THE INVESTIGATIONS HIS ONLY OFFENSE WAS TO WORK TOO HARD FOR THE COMPANY MR GUERRERO MAINTAINS COMMODITIES PRODUCERS LIKE CODELCO OFTEN ENTER THE FUTURES MARKET TO HEDGE THAT IS TO PROTECT THEMSELVES AGAINST PRICE FLUCTUATIONS WHILE CODELCO OFFICIALS NOW RUE THE TRUST THEY PLACED IN MR DAVILA THEY SAY THERE WAS A REASON HE WAS ONE OF ONLY A HANDFUL OF CHILEANS WHO COULD CLAIM FIRSTHAND KNOWLEDGE OF FAROFF FUTURES EXCHANGES AFTER STINTS AT A BROKERAGE FIRM AND A BANK MR DAVILA IN 1986 WAS HIRED BY CODELCO CHILE'S LARGEST COMPANY WITH 20000 EMPLOYEES AND 3 BILLION IN ANNUAL SALES HE WAS SO DEDICATED TO THE JOB THAT WHEN CODELCO SENT HIM TO THE LONDON METALS EXCHANGE FOR TRAINING HE POSTPONED HIS WEDDING DATE TO MAKE THE TRIP THE HARD WORK ONLY CONTINUED MR DAVILA OFTEN AROSE IN THE WEE HOURS OF THE MORNING TO BE IN TOUCH WITH TRADERS IN LONDON HE SELDOM LEFT THE OFFICE BEFORE 9 PM EVEN WHEN HE ESCAPED FOR WEEKENDS TO A COASTAL RESORT WEST OF THE CAPITAL MR DAVILA WOULD TAKE A BULGING BRIEFCASE AND FAX MACHINE WITH HIM THE STRAIN EVIDENTLY BEGAN TO TAKE ITS TOLL HE HAD TOO MUCH WORK SAYS GASTON FREZ A FORMER ASSISTANT HE WAS VERY TIRED AFTER SUFFERING WHAT DOCTORS BELIEVE WAS A MILD HEART ATTACK EARLY LAST YEAR MR DAVILA BEGAN CONSULTING A PSYCHOLOGIST TO HELP HIM DEAL WITH THE STRESS SAYS MR GUERRERO HIS LAWYER APPARENTLY MR DAVILA HAD VERY LITTLE SUPERVISION FROM HIGHERUPS HIS COMPUTER WASN'T LINKED TO THE TERMINALS OF HIS SUPERVISORS MR DAVILA TESTIFIED THAT HE KEPT MANAGERS UPDATED MOSTLY BY GIVING THEM ORAL REPORTS A SUBSEQUENT COMPANY AUDIT FOUND THAT CODELCO CONTROLS ON TRADING ACTIVITIES WERE IGNORED ALL AROUND IN HIS SWORN TESTIMONY MR DAVILA SAID HE HAD NO INKLING HE MADE ERRONEOUS COMPUTER ENTRIES UNTIL LAST OCTOBER WHEN HE VISITED LONDON ON BUSINESS IT SEEMS THAT SOME BROKERS WHO BOUGHT HIS CONTRACTS BECAME CONCERNED THAT HE WOULDN'T BE ABLE TO PAY AND ASKED HIM WHY HE WAS MAINTAINING MARKET POSITIONS THAT WERE LOSING MONEY THE FACT THAT HIS MARKET POSITION WAS UNFAVORABLE CAME AS A SHOCK TO MR DAVILA I WAS SHOWING A PROFIT HE TOLD INVESTIGATORS THEN WHEN I WENT BACK TO CHECK THE TRADE AND TO FIX THE MISTYPED SYMBOLS A LOSS APPEARED THE INITIAL LOSS WAS 30 MILLION TO 40 MILLION HE SAID IN A PANIC MR DAVILA CONCEALED THE DISASTER FROM HIS SUPERIORS AND SET ABOUT TRYING TO WIN BACK THE MONEY IN A FRENZY OF ABOUT 5000 SPECULATIVE METALS FUTURES TRADES ON MARKETS IN LONDON AND ELSEWHERE HE TESTIFIED THAT HE TOOK SHORT POSITIONS MEANING HE BET THAT THE PRICE OF A METAL WOULD BE LOWER BY THE CONTRACT'S EXPIRATION DATE THAN ON THE DAY HE ENTERED INTO THE CONTRACT SOME ANALYSTS CONJECTURE THAT HE WAS TRYING TO USE THE SHEER VOLUME OF HIS TRADES WHICH WERE BACKED BY CODELCO'S CREDIT LINES FROM 18 BIG BROKERAGE FIRMS TO PUSH METALS PRICES DOWNWARD BUT THE PRICE OF COPPER THE METAL HE TRADED MOST FREQUENTLY RALLIED ANYWAY AND MR DAVILA LOST ANOTHER 180 MILLION TO 210 MILLION THE LESSON IS THAT THE BIGGEST TRADER IN CHILE ISN'T BIGGER THAN THE MARKET SAYS RAY PRADO OF AM HAUT COMMODITIES OF LIBERTY CORNER NJ MR DAVILA FINALLY CONFESSED THE CATASTROPHE TO HIS SUPERIORS IN LATE JANUARY HE WAS PROMPTLY FIRED AND HAULED BEFORE GOVERNMENT INVESTIGATORS AFTER HE TESTIFIED HIS CAR WAS PURSUED THROUGH SANTIAGO'S SINUOUS STREETS BY A PACK OF ABOUT 40 REPORTERS EVENTUALLY MR DAVILA STOPPED THE CAR AND CONFRONTED THE MOB I HAVE COMMITTED AN ERROR HE SAID IN A QUAVERY VOICE AND I AM GOING TO ASSUME THE RESPONSIBILITY THAT COMES ALONG WITH THAT ERROR NOT ALL CHILEANS SEEM READY TO FORGIVE AND FORGET THOUGH IN FRONT OF CODELCO'S HEADQUARTERS A PROTESTER SEEKING HARSH PUNISHMENT FOR MR DAVILA CARRIES A SIGN REFERRING TO HIM AS JAUN PBALO A JIBE AT THE TRADER'S BUNGLED TYPING 9403160103 940316 TECHNOLOGY & HEALTH MFS COMMUNICATIONS PLANS HOSTILE BID TO ACQUIRE CENTEX TELEMANAGEMENT BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL MFS COMMUNICATIONS CO AN UPSTART FIBER OPTIC TELEPHONE SERVICE PROVIDER SAID IT WILL MAKE A HOSTILE 160 MILLION CASH OFFER TO ACQUIRE CENTEX TELEMANAGEMENT INC CENTEX A SAN FRANCISCO RESELLER OF PHONE SERVICES OFFERS SOME SIMILAR SERVICES AS MFS AND WOULD SIGNIFICANTLY BOOST MFS'S SIZE AND CUSTOMER BASE LAST FALL CENTEX REJECTED FRIENDLY OVERTURES BY MFS CENTEX COMPANY OFFICIALS DID NOT RETURN PHONE CALLS FOR COMMENT MFS OF OMAHA NEB SAID ITS OFFER FOR 9 A SHARE FOR ALL COMMON SHARES OUTSTANDING OF CENTEX WILL BEGIN TODAY AND REPRESENTS A PREMIUM OF ABOUT 85 OVER THE CLOSING PRICE OF CENTEX SHARES YESTERDAY MFS'S ANNOUNCEMENT WAS MADE AFTER THE MARKET CLOSED AND CENTEX'S SHARES FELL 125 CENTS TO 4875 IN NASDAQ STOCK MARKET TRADING CENTEX HAD ABOUT 179 MILLION SHARES OUTSTANDING AS OF DEC 31 MFS SHARES WERE UNCHANGED IN NASDAQ TRADING ENDING AT 3075 MFS IS ONE OF THE LARGEST INDEPENDENT AND MOST AGGRESSIVE COMPANIES THAT PROVIDE HIGHSPEED VOICE AND DATA SERVICES OVER A SOPHISTICATED FIBEROPTIC NETWORK IT SERVES ROUGHLY 800 BUSINESSES AND GOVERNMENT AGENCIES THE COMPANY IS 72OWNED BY CLOSELY HELD CONSTRUCTION ENERGY AND MINING COMPANY PETER KIEWIT SONS INC MFS ALONG WITH CLOSELY HELD TELEPORT COMMUNICATIONS GROUP OF NEW YORK HAS INCREASINGLY BECOME A THORN IN THE SIDE OF REGIONAL PHONE COMPANIES BY OFFERING ONESTOP SHOPPING FOR LOCAL AND LONG DISTANCE PHONE SERVICE THEY HAVE SUCCESSFULLY WOOED AWAY LUCRATIVE BUSINESS CUSTOMERS FROM THE BABY BELLS JAMES Q CROWE CHAIRMAN AND CHIEF EXECUTIVE OF MFS SAID THE ACQUISITION OF CENTEX IF SUCCESSFUL WOULD BOLSTER THE SERVICES OF MFS'S INTELENET UNIT WHILE CENTEX OFFERS IDENTICAL SERVICES IN 21 CITIES THEY DON'T OWN THEIR OWN NETWORK LIKE WE DO MR CROWE SAID BY ACQUIRING CENTEX WE CAN SERVE A GROWING NUMBER OF CENTEX'S 11000 CUSTOMERS AT LOWER COSTS HE NOTED THAT CENTEX HAD REVENUE OF ABOUT 200 MILLION IN 1993 WHILE MFS REPORTED REVENUE OF 145 MILLION MR CROWE SAID HE HAD ORIGINALLY APPROACHED CENTEX WITH AN OFFER FOR A FRIENDLY BUSINESS COMBINATION LAST FALL BUT CENTEX HAD TURNED IT DOWN LATELY HOWEVER INTENSIFYING COMPETITION AMONG LOCAL PHONE PROVIDERS AND CHANGES IN THE REGULATORY CLIMATE PERSUADED MFS TO LAUNCH ITS HOSTILE OFFER HE SAID THE OFFER HINGES ON AMONG OTHER THINGS THAT AT LEAST A MAJORITY OF THE CENTEX SHARES ARE TENDERED AND THAT A PREFERREDSHARE PURCHASE RIGHTS RECENTLY ISSUED BY THE CENTEX BOARD BE REDEEMED OR INVALIDATED MFS WHICH SAID IT ALREADY OWNS ALMOST 84 OF CENTEX SHARES SAID SALOMON BROTHERS INC AND GLEACHERS & CO INC ARE ACTING AS FINANCIAL ADVISORS AND DEAL MANAGERS MFS HAS NEVER REPORTED A PROFIT AND EXPECTS LOSSES INTO THE NEAR FUTURE BUT THE COMPANY SAYS IT IS DETERMINED TO STRENGTHEN ITS HAND AGAINST THE DOMINANT REGIONAL PHONE COMPANIES AND OTHER COMPETITORS BY QUICKLY BUILDING UP ITS FIBEROPTIC NETWORK ACCORDING TO MR CROWE MFS WILL INVEST OVER 1 BILLION TO CONSTRUCT NETWORKS OVER THREETOFIVE YEARS EXPANDING THE COMPANY'S REACH TO 65 DOMESTIC AND TEN INTERNATIONAL CITIES 9403160101 940316 TREASURY HAD RULES TO COVER HANDLING POLITICALLY SENSITIVE CASES MEMOS SHOW BY KENNETH H BACON AND ALBERT R KARR STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE TREASURY OFFICIALS FACING QUESTIONS ABOUT THE PROPRIETY OF THEIR WHITE HOUSE MEETINGS ABOUT THE WHITEWATER AFFAIR HAD EARLIER ESTABLISHED CLEAR RULES FOR MONITORING BUT NOT INFLUENCING POLITICALLY SENSITIVE CASES LAST MAY WHEN THE RESOLUTION TRUST CORP WAS CONSIDERING A SUIT AGAINST A LOUISIANA CONGRESSMAN WHO HAD DEFAULTED ON LOANS FROM FAILED THRIFTS THE TREASURY SAID IT WANTED TO BE NOTIFIED BEFORE ANY SUIT WAS FILED BUT OFFICIALS EMPHASIZED THEY HADN'T ANY INTENTION OF INTERFERING IN THE CASE THE POLICY IS OUTLINED IN A SERIES OF MEMOS WRITTEN LAST MAY CONCERNING A POSSIBLE RTC SUIT AGAINST REP WILLIAM JEFFERSON D LA TREASURY OFFICIALS HAD MET IN APRIL WITH MR JEFFERSON TO DISCUSS A PROBLEM HIS FORMER LAW FIRM WAS HAVING WITH THE RTC BUT THEY DIDN'T DISCUSS ANY PENDING ACTION AGAINST THE CONGRESSMAN WE HAVE ASKED THAT WE BE ADVISED PRIOR TO INITIATION OF LITIGATION AGAINST MEMBERS OF CONGRESS SO THAT WE WOULDN'T BE SURPRISED IN OUR DEALINGS WITH THE HILL JEAN HANSON WHO WAS ABOUT TO BECOME THE TREASURY'S GENERAL COUNSEL WROTE IN A MEMO TO AN RTC OFFICIAL BY THE SAME TOKEN WE EMPHASIZED THAT NO ACTION SHOULD BE TAKEN TO COMPROMISE THE ABILITY OF THE RTC TO RECOVER SUMS PROPERLY DUE IT DEPUTY TREASURY SECRETARY ROGER ALTMAN HAS SAID THAT HE WAS ONLY TRYING TO GIVE WHITE HOUSE OFFICIALS A SIMILAR HEADS UP WHEN HE AND MS HANSON WENT TO THE WHITE HOUSE ON FEB 2 HE SAID THEY DISCUSSED RTC PROCEDURES THAT COULD LEAD TO SUITS STEMMING FROM THE FAILURE OF MADISON GUARANTY SAVINGS & LOAN AN ARKANSAS THRIFT THAT HAS BEEN LINKED TO PRESIDENT AND MRS CLINTON'S POLITICAL AND BUSINESS DEALINGS MR ALTMAN IS THE INTERIM HEAD OF THE RTC THE DISCLOSURE EARLIER THIS MONTH THAT TREASURY OFFICIALS WENT TO THE WHITE HOUSE THREE TIMES TO DISCUSS POSSIBLE LEGAL ACTION AGAINST MADISON GUARANTY PROVOKED A FIRESTORM OF CRITICISM MR ALTMAN MS HANSON AND SEVERAL WHITE HOUSE AND TREASURY OFFICIALS HAVE BEEN SUBPOENAED TO TESTIFY BEFORE A GRAND JURY THAT IS INVESTIGATING THE FAILURE OF MADISON AS WELL AS THE CLINTONS' INVOLVEMENT IN WHITEWATER DEVELOPMENT CO A FAILED LANDDEVELOPMENT COMPANY IN WHICH MR AND MRS CLINTON HAD INVESTED WITH THE FORMER HEAD OF MADISON THE INCIDENT INVOLVING REP JEFFERSON ALSO SHOWS HOW TRICKY POLITICAL CASES CAN BE ON MAY 17 1993 RICHARD ABOUSSIE THEN THE RTC'S ACTING GENERAL COUNSEL SENT AN ELECTRONICMAIL MESSAGE TO RTC OFFICIALS IN DALLAS AND WASHINGTON IT SAID THAT MS HANSON HAD DIRECTED THAT THE RTC SHALL NOT FILE ANY LITIGATION WITH RESPECT TO THE CONGRESSMAN WITHOUT PERMISSION FROM MR ALTMAN MS HANSON OBJECTED TO MR ABOUSSIE'S INTERPRETATION OF HER INSTRUCTIONS THE MEMORANDUM COULD BE READ TO IMPLY THAT TREASURY HAS IMPOSED A FREEZE ON THIS LITIGATION THIS IS EMPHATICALLY NOT THE CASE SHE SAID IN A MEMO TO MR ABOUSSIE WHILE THE TREASURY WANTS TO BE NOTIFIED OF CASES AGAINST MEMBERS OF CONGRESS IN NO EVENT DO WE INTEND TO BLOCK THE COMMENCEMENT OF LITIGATION AGAINST CONGRESSMAN JEFFERSON OR ANY OTHER MEMBER OF CONGRESS FOR THAT MATTER IF LITIGATION IS APPROPRIATE ON MAY 24 MR ABOUSSIE SENT OUT A NEW MEMO CALLING HIS FIRST MESSAGE MISLEADING AND NOTING THAT MR ALTMAN DOES NOT RESERVE TO HIMSELF THE AUTHORITY TO DETERMINE THAT LITIGATION SHOULD PROCEED OR TO REQUIRE THAT HIS PERMISSION BE OBTAINED BEFORE GOING FORWARD HE SIMPLY WANTS TO BE ADVISED ADEQUATELY IN ADVANCE BEFORE LITIGATION AGAINST A MEMBER OF CONGRESS IS FILED AS IT TURNS OUT AN RTC OFFICIAL SAID THE THRIFTCLEANUP AGENCY DIDN'T FILE A LAWSUIT AGAINST MR JEFFERSON RONALD GLANCZ A FORMER FEDERAL DEPOSIT INSURANCE CORP LAWYER CURRENTLY WITH THE FIRM OF VENABLE BAETJER HOWARD & CIVILETTI SAID THAT THERE IS NOTHING UNUSUAL ABOUT INFORMING THE HEAD OF AN AGENCY ABOUT LEGAL ACTION AGAINST A MEMBER OF CONGRESS WHAT WOULD BE INAPPROPRIATE IS TRYING TO SUPPRESS LAWSUITS FOR POLITICAL REASONS HE ADDED 9403160100 940316 HEARD ON THE STREET SOME CONTEND ASSOCIATED COMMUNICATIONS INVESTORS JUST MIGHT BE HOLDING POT OF GOLD BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL IT ISN'T TOO COMMON TO FIND MONEY LYING AROUND ON WALL STREET BUT SOME THINK IT COULD HAPPEN TO INVESTORS IN ASSOCIATED COMMUNICATIONS A PITTSBURGHBASED COMPANY THAT AGREED IN MIDFEBRUARY TO MERGE ITS CELLULARPHONE BUSINESS WITH SOUTHWESTERN BELL ASSOCIATED'S A SHARES HAVE SLID TO 23 1/2 OFF 1/4 YESTERDAY ON THE NASDAQ STOCK MARKET BUT THEY COULD BE WORTH AS MUCH AS 31 SAY SOME INVESTORS AND DEAL EXPERTS THE EXTRA VALUE THEY ENVISION ARISES FROM THE NOTEWORTHY NATURE OF THE TWO COMPANIES' AGREEMENT ASSOCIATED IS SELLING ITS CELLULAR BUSINESS FOR 680 MILLION OF SOUTHWESTERN BELL SHARES WITH THE DEAL VALUED AT ABOUT 1475 A SHARE TO ASSOCIATED'S SHAREHOLDERS BUT RIGHT BEFORE THAT MERGER BECOMES EFFECTIVE ASSOCIATED WILL SPLIT ITSELF IN TWO AND DISTRIBUTE TO SHAREHOLDERS ITS REMAINING NONCELLULAR BUSINESSES PRINCIPALLY A CHUNK OF TELECOMMUNICATIONS AND LIBERTY MEDIA STOCK VALUED AT ABOUT 500 MILLION THE TRANSACTION IS STRUCTURED TO BE TAXFREE TO ASSOCIATED SHAREHOLDERS BECAUSE THEY ARE SWAPPING STOCK IN ONE COMPANY FOR STOCK IN ANOTHER THE KEY TO REAPING THE ADDED VALUE SAYS ROBERT WILLENS LEHMAN BROTHERS' RESIDENT TAX EXPERT IS THAT THE COMPANY IS POISED TO PASS ALONG MILLIONS OF DOLLARS OF UNTAPPED VALUE DIRECTLY TO SHAREHOLDERS WITHOUT TRIGGERING TAXES HERE'S WHY THE COMPANY HAS OWNED ITS CABLE HOLDINGS SINCE 1979 WHEN THE BERKMAN FAMILY SPUN ASSOCIATED COMMUNICATIONS OUT OF A FAMILYCONTROLLED GREETINGCARD COMPANY AT THE TIME ASSOCIATED'S TCI HOLDINGS WERE VALUED AT ONLY ABOUT 6 MILLION BUT SINCE THEN TCI'S STOCK SOARED SO FAR THAT ASSOCIATED'S BASIS FOR TAX PURPOSES IN THE STOCK IS ABOUT 25 CENTS ADJUSTED FOR A SPATE OF SPLITS IF THE COMPANY WANTED TO SELL THAT STOCK AND DISTRIBUTE THE PROCEEDS THE TAX BURDEN WOULD BE WAY OVER 50 SAYS MR WILLENS BOTH THE COMPANY AND ITS SHAREHOLDERS WOULD BE TAXED ON THE PAPER GAIN IN TCI AND LIBERTY MEDIA'S STOCK A BURDEN HE ESTIMATES AT 291 MILLION ADD OTHER ASSOCIATED BUSINESSES SUCH AS A CELLULAR FRANCHISE IN MEXICO A NEW YORK ART GALLERY AND A COUPLE OF RADIO STATIONS AND THE NEW COMPANY'S STOCK COULD BE WORTH 16 BEFORE COUNTING THAT ESTIMATED 1475 OF SOUTHWESTERN BELL STOCK BEING DISTRIBUTED DIRECTLY TO ASSOCIATED HOLDERS THE BERKMANS OWN ABOUT 20 OF EACH CLASS OF ASSOCIATED STOCK MYLES BERKMAN ASSOCIATED'S CHAIRMAN AND SON OF COMPANY FOUNDER JACK BERKMAN SAYS HE ISN'T CURRENTLY CONTEMPLATING A FURTHER SPINOFF OF THE TCI SHARES WE'RE JUST TAKING ONE STEP AT A TIME YOU HAVE TO SEE WHAT THE RULES ARE AT THE TIME BUT FAVORABLE TAX TREATMENT IS ONLY PART OF THE APPEAL FOR SOME STALWART SHAREHOLDERS THIS HAS BEEN A GREAT COMPANY AND THE SPINOFF IS JUST ANOTHER REASON TO BUY SAYS SALVATORE MUOIO DIRECTOR OF RESEARCH AT GABELLI & CO WHICH HAS OWNED ASSOCIATED COMMUNICATIONS STOCK SINCE 1979 WHEN THE COMPANY WAS STARTED MR MUOIO WHO ALSO RUNS A TELECOMMUNICATIONS FUND FOR GABELLI BELIEVES THE BERKMANS WILL USE WHAT'S LEFT AFTER THE CELLULAR SPINOFF AS THE BASIS FOR BUILDING A NEW COMPANY JUST AS THEY DID WITH ASSOCIATED THESE ARE AMONG THE SMARTEST PEOPLE I KNOW IN TELECOMMUNICATIONS MR MUOIO SAYS ADDING THERE ARE ONLY A FEW COMPANIES THAT HAVE MADE AS MUCH MONEY FOR THEIR SHAREHOLDERS SCOTT BLACK OF DELPHI MANAGEMENT WHO PRIDES HIMSELF ON BEING A VALUE PLAYER HAS OWNED ASSOCIATED STOCK SINCE 1989 IN THE HOPE THAT THE COMPANY WILL BREAK ITSELF UP COMPLETELY NOW HE SEES IT AS A CHEAP WAY TO BUY TCI STOCK WHICH HAS FALLEN ABOUT 33 IN THE WAKE OF FEDERAL CABLE REGULATION FEARS AND THE ABANDONED MERGER WITH BELL ATLANTIC EVERY DOLLAR GAIN FOR TCI ADDS 40 CENTS TO THE VALUE OF ASSOCIATED'S HOLDINGS IF TCI REGAINS ITS LUSTER ASSOCIATED'S STOCK WILL BE WORTH 35 SAYS MR BLACK WHO OWNS 232000 SHARES IN THE FUNDS HE MANAGES MERGER EXPERTS EXPECT TO SEE A GROWING NUMBER OF SPINOFFSTUDDED DEALS LIKE THIS THAT AVOID TAX BURDENS BY REWARDING SHAREHOLDERS DIRECTLY YOU CAN EXPECT TO SEE MORE OF THESE SAYS FRED SEEGAL COHEAD OF CORPORATE FINANCE AT SALOMON BROTHERS WHICH IS REPRESENTING ASSOCIATED IN THE DEAL WITH SOUTHWESTERN BELL ASSOCIATED'S CLASS A SHARES EACH HAVE 25 TIMES THE VOTING POWER OF THE CLASS B SHARES THE BERKMAN FAMILY HOLDINGS ARE ABOUT EVENLY SPLIT BETWEEN THE CLASSES BUT INVESTORS MAKE LITTLE DISTINCTION THE TWO CLASSES TEND TO TRADE ABOUT 50 CENTS APART 9403160097 940316 IN KEMPER BID FUND TRUSTEES HAVE BIG VOICE BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL GE CAPITAL CORP IN ITS 22 BILLION BID FOR KEMPER CORP FACES AN UNUSUAL TAKEOVER OBSTACLE A BIZARRE WRINKLE IN MUTUALFUND LAW THAT IN THE PAST HAS ALL BUT PROHIBITED HOSTILE TAKEOVERS OF MUTUALFUND ADVISERS NEVERTHELESS MANY PEOPLE THINK THE ACQUISITIVE GENERAL ELECTRIC CO UNIT CAN OVERCOME THIS BARRIER WHICH PUTS GREAT POWER IN THE HANDS OF THE OUTSIDE DIRECTORS OR TRUSTEES ON MUTUALFUND BOARDS AT LEAST ONE SUCH KEMPER FUND TRUSTEE SAYS HE'D BE WILLING TO APPROVE AN INVESTMENT CONTRACT WITH AN UNWELCOME ACQUIRER OF KEMPER AS LONG AS IT DOESN'T HURT FUND PERFORMANCE IF KEMPER'S NOT HAPPY WITH A HOSTILE TAKEOVER THAT'S NOT THE ISSUE SAYS LEWIS BURNHAM A KEMPER FUND DIRECTOR FOR 17 YEARS REACHED BY PHONE IN TAMPA FLA WHERE HE IS A MANAGEMENT CONSULTANT HE SAID WE REALLY ARE COMPLETELY REMOVED FROM KEMPER WE CONTRACT WITH THEM TO MANAGE THE ASSETS OF THE FUND IN THE BEST INTERESTS OF THE SHAREHOLDERS IF GE CAPITAL SUCCEEDS IN THE FIRST HOSTILE TAKEOVER OF A FUNDMANAGEMENT COMPANY IN MEMORY KEMPER FUND SHAREHOLDERS CAN EXPECT A GROWING ROLE FOR GE IN THE MANAGEMENT AND ADMINISTRATION OF THEIR MUTUAL FUNDS GE MONEY MANAGERS MIGHT LAUNCH AND RUN SOME NEW KEMPER INTERNATIONAL FUNDS AN AREA WHERE KEMPER HAS BEEN SLOW TO INTRODUCE NEW FUNDS A FEW YEARS DOWN THE ROAD SOME SAY THE NAME OF THE FUNDS COULD CHANGE TO GE FROM KEMPER MAKING IT EASIER TO PERSUADE BROKERAGEHOUSE RIVALS OF KEMPER'S SECURITIES BUSINESS TO SELL THE FUNDS HOWEVER GE HAS SAID THAT IT FEELS THE KEMPER BRAND NAME HAS VALUE KEMPER WITH 475 BILLION IN MUTUALFUND ASSETS AT THE END OF FEBRUARY RANKED AS THE NATION'S 12THLARGEST MUTUALFUND GROUP AT THE END OF 1993 ACCORDING TO DALBAR FINANCIAL SERVICES AT THE END OF 1993 GE HAD ONLY 56 BILLION IN MUTUALFUND ASSETS MOSTLY IN MONEYMARKET FUNDS ACCORDING TO DALBAR A COMBINED GEKEMPER ORGANIZATION WOULD HAVE BEEN THE 10THLARGEST FUND GROUP AT THE END OF 1993 ACCORDING TO DALBAR LARGER THAN SMITH BARNEY SHEARSON IN THE MUTUALFUND REALM AND SMALLER THAN DEAN WITTER'S INTERCAPITAL GROUP ALL TOLD INCLUDING INSTITUTIONAL ACCOUNTS AS WELL AS MUTUAL FUNDS KEMPER MANAGES SOME 70 BILLION FUND ANALYSTS AND INVESTMENT BANKERS CAN'T RECALL ANY SUCCESSFUL HOSTILE TAKEOVER OF A MUTUALFUND COMPANY A HOSTILE TAKEOVER WOULD HAVE TO BE VERY CAREFULLY MANAGED BY THE GE CAPITAL FOLKS SAYS MARY PAT THORNTON A PARTNER AT PUTNAM LOVELL INC AN INVESTMENT BANK SPECIALIZING IN MONEYMANAGEMENT FIRMS IF THE OUTSIDE DIRECTORS ARE UNCOMFORTABLE THEY CAN JUST DISAGREE AND MOVE THE MUTUALFUND ASSETS ELSEWHERE THE MONEY CAN UP AND LEAVE BECAUSE TECHNICALLY KEMPER DOESN'T OWN ITS MUTUAL FUNDS LIKE EVERY OTHER FUND ADVISER IT OWNS ONLY THE COMPANY THAT EMPLOYS THE FUND MANAGERS THAT COMPANY CAN BE FIRED BY MUTUALFUND TRUSTEES ANOTHER NAME FOR DIRECTORS UNDER SOME STATE LAWS IF THEY ARE UNHAPPY WITH A CHANGE IN OWNERSHIP MUTUAL FUNDS ARE BY LAW OWNED BY THEIR INVESTORS THE FUND SHAREHOLDERS AND THE FUNDS' BOARDS HAVE A FIDUCIARY DUTY NOT TO KEMPER SHAREHOLDERS BUT TO THE SHAREHOLDERS OF THE FUNDS IN KEMPER'S CASE THE FUND TRUSTEES HAVE TO VOTE ON A CHANGE OF OWNERSHIPAND THE ISSUE ISN'T THE PRICE OF KEMPER STOCK THEIR INTEREST SAYS BRUCE MCEVER PRESIDENT OF BERKSHIRE CAPITAL CORP AN INVESTMENT BANK SPECIALIZING IN MONEYMANAGEMENT FIRMS DO THE SHAREHOLDERS HAVE A BETTER DEAL WITH GE CAPITAL THAN THEY HAD BEFORE WITH KEMPER PRACTICALLY SPEAKING FUND DIRECTORS ARE HARDLY DISINTERESTED OBSERVERS BECAUSE OF LONGTIME TIES BETWEEN FUND ADVISERS AND THE DIRECTORS THEY NOMINATE DIRECTORS ARE MORE LIKELY TO BE ON THE SIDE OF EXISTING MANAGEMENT SAYS MOLLY BUTLER HART EXECUTIVE EDITOR OF INDUSTRY NEWSLETTER FUND ACTION IF KEMPER IS OPPOSED TO THE MERGER I WOULD THINK THEY WOULD BE WORKING THEIR TRUSTEES KEMPER HAD NO COMMENT ON WHETHER IT WAS IN DISCUSSION WITH ITS FUND TRUSTEES THE SAME GROUP OF TRUSTEES SERVES ON THE BOARDS OF THE BULK OF THE KEMPER FUNDS THOUGH IT IS RARE MUTUALFUND ADVISERS HAVE BEEN STUNG ON OCCASION BY INDEPENDENT MUTUALFUND DIRECTORS IT HAPPENED LAST YEAR TO KEMPER WHEN THE DIRECTORS OF THE SELECTED MUTUALFUND GROUP VOTED TO OUST KEMPER AND MOVE THE FUNDS TO WHAT NOW IS CALLED SELECTED/VENTURE ADVISERS WHY IS GE WILLING TO TAKE ON THE RISK OF A REVOLT BY FUND DIRECTORS KEMPER HAS BEEN A COMPANY IN TURMOIL FOR THE PAST FIVE YEARS SAYS PUTNAM LOVELL'S MS THORNTON IN NEW YORK KEMPER HAS HAD NUMEROUS CHANGES IN MANAGEMENT KEMPER HAS ALSO SEEN CUSTOMERS DEPART KEMPER FUNDS HAD AN OUTFLOW OF ABOUT 16 BILLION IN 1993 ACCORDING TO DALBAR DESPITE RECORD GROWTH IN THE MUTUALFUND INDUSTRY OUTFLOWS FROM KEMPER'S MONEYMARKET FUNDS OUTWEIGHED THE GROWTH OF ITS STOCK AND BOND FUNDS PRIMARILY THEY'RE NOT DRAWING ENOUGH IN TO STOCK FUNDS SAYS A MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL SERVICES INC IT WOULD BE EASIER FOR KEMPER FUND DIRECTORS TO REBUFF GE IF KEMPER WERE REALLY COOKING WITH GAS AND HAD BEEN GROWING AT INDUSTRYLIKE RATES SAYS MS THORNTON WITH GE'S STERLING REPUTATION FOR MANAGEMENT GE HAS HAS A GOOD SHOT AT CONVINCING THE DIRECTORS NO ONE'S DONE A HOSTILE TAKEOVER SAYS STEPHEN TREADWAY PRESIDENT OF SMITH BARNEY SHEARSON MUTUAL FUNDS BUT IF A WELLCAPITALIZED QUALIFIED BUYER COMES IN I SEE NO REASON WHY SOMEONE COULDN'T TAKE OVER ANOTHER FUND ADVISER OTHERS AREN'T SO SURE IN A HOSTILE DEAL THE POSSIBILITY THAT OUTSIDE DIRECTORS MIGHT BALK IS A GOOD TACTICAL DEFENSE TO THROW UP SAYS JULIE ALLECTA AN ATTORNEY AT HELLER EHRMAN WHITE & MCAULIFFE ACQUIRERS LOOKING TO BULK UP THEIR MUTUALFUND BUSINESS HAVE BEEN PREYING ON A NUMBER OF WEAKENED FUND COMPANIES DEALS WERE ANNOUNCED LAST YEAR TO BUY LIEBER & CO MANAGER OF EVERGREEN FUNDS AND DREYFUS CORP THE LATTER TO BE BOUGHT BY MELLON BANK CORP BOTH THOSE FUND GROUPS LIKE KEMPER HAVE HAD TROUBLE EXPANDING THEIR ASSETS DESPITE THE BOOM IN THE FUND INDUSTRY IT IS UNDERSTOOD THAT KEMPER ITSELF WAS BEGINNING TO LOOK AROUND FOR ACQUISITIONSPERHAPS TO ADD MORE FUNDS INVESTING OVERSEAS WHICH HAVE BEEN POPULAR WITH INVESTORS 9403160096 940316 WHO'S NEWS ORANGE & ROCKLAND ANNOUNCES DISMISSAL OF TWO EXECUTIVES PEARL RIVER NY ORANGE & ROCKLAND UTILITIES INC DISMISSED L MARIO DIVALENTINO AND THOMAS A FOLCHI TWO OFFICERS WHO AT ONE TIME HAD FINANCIAL OVERSIGHT AT THE COMPANY ORANGE AND ROCKLAND DECLINED TO SPECIFY WHAT PROMPTED THE DISMISSALS ALTHOUGH A SPOKESMAN SAID A SPECIAL BOARD COMMITTEE INVESTIGATION HAS GIVEN THE FINANCIAL AREA RIGOROUS SCRUTINY MR FOLCHI 49 YEARS OLD VICE PRESIDENT CUSTOMER SERVICE AND HUMAN RESOURCES COULDN'T BE REACHED FOR COMMENT MESSAGES LEFT AT THE HOME OF MR DIVALENTINO 44 VICE PRESIDENT ACCOUNTING AND FINANCE WEREN'T RETURNED THE COMPANY HAS BEEN CONDUCTING AN INTERNAL INVESTIGATION INTO MISUSE OF COMPANY FUNDS JAMES SMITH THE COMPANY'S FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS DISMISSED IN OCTOBER 1993 IN FEBRUARY THE UTILITY FILED SUIT IN NEW YORK STATE SUPREME COURT IN ROCKLAND COUNTY AGAINST MR SMITH SEEKING 5 MILLION IN DAMAGES THE SUIT CHARGES THAT MR SMITH FAILED IN HIS FIDUCIARY DUTY AND CONVERTED COMPANY FUNDS TO HIS PERSONAL USE HE REMAINS A DIRECTOR HOWEVER AT LEAST UNTIL THE NEXT ANNUAL MEETING A FORMER ORANGE & ROCKLAND VICE PRESIDENT FOR CORPORATE POLICY AND EXTERNAL AFFAIRS IN OCTOBER PLEADED GUILTY IN ROCKLAND COUNTY DISTRICT COURT TO CHARGES OF GRAND LARCENY AND BRIBERY AND TWO OTHER FORMER EMPLOYEES HAD PLEADED GUILTY TO STEALING 199000 FROM THE COMPANY THROUGH A PHONY BILLING SCHEME 9403160095 940316 CREDIT MARKETS MUNICIPALITIES SEEK BIG BOARD LISTINGS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THE WAKE OF THE FEDERAL GOVERNMENT'S PUSH TO MAKE CITIES AND TOWNS TELL INVESTORS MORE ABOUT THEMSELVES SEVERAL MUNICIPALITIES ARE SCRAMBLING TO GET THEIR BONDS LISTED FOR PUBLIC TRADING ON THE NEW YORK STOCK EXCHANGE TWO MUNIBOND ISSUERS YESTERDAY SAID THEY DECIDED TO LIST THEIR BONDS ON THE BIG BOARD CALIFORNIA MOVED IN THIS DIRECTION LESS THAN TWO WEEKS AGO SUCH ACTIONS COULD BE GOOD FOR INVESTORS WHO OFTEN FIND WIDE DISCREPANCIES IN PRICES QUOTED FOR MUNI BONDS CONNECTICUT SOLD 25 MILLION OF TAXEXEMPT BONDS YESTERDAY THAT WILL BE LISTED ON THE BIG BOARD TOMORROW THE NEW YORK STATE URBAN DEVELOPMENT CORP WILL SELL 33 MILLION OF BONDS THAT WILL ALSO BE LISTED ON THE EXCHANGE NEITHER ISSUER HAS LISTED ITS BONDS BEFORE ON MARCH 3 CALIFORNIA ANNOUNCED THAT IT WOULD BECOME THE FIRST ISSUER IN OVER A DECADE TO HAVE ITS TAXEXEMPT BONDS LISTED ON THE BIG BOARD STATE TREASURER KATHLEEN BROWN SAID AT THE TIME THAT WITH THIS LISTING CALIFORNIA IS TAKING THE LEAD IN DEMONSTRATING HOW THE NATION'S STATE AND LOCAL ISSUERS CAN PROVIDE GREATER PUBLIC PRICE DISCLOSURE IN THE SECONDARY MARKET THE MOVES BY CONNECTICUT AND THE NEW YORK STATE URBAN DEVELOPMENT CORP FOLLOW ON THE HEELS OF THE SECURITIES AND EXCHANGE COMMISSION ASKING FOR COMMENTS ABOUT THE NEED FOR BETTER SECONDARY MARKET DISCLOSURE IN THE MUNICIPAL BOND MARKET THE LISTINGS MEAN IT WILL BE EASIER FOR INVESTORS ESPECIALLY INDIVIDUALS TO TRACK THE VALUE OF THEIR BOND HOLDINGS IT WILL ALSO PROBABLY NARROW THE GAP BETWEEN THE BID AND ASK PRICES OF THESE LISTED MUNICIPAL BONDS THUS CUTTING INTO THE PROFITS OF MUNICIPAL BOND MARKET MAKERS MEANWHILE THE PRICE OF THE BENCHMARK US TREASURY BOND JUMPED MORE THAN 7/8 POINT OR MORE THEN 875 FOR A BOND WITH 1000 FACE VALUE TO 92 2/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE DROPPED TO 687 FROM 695 ON MONDAY INVESTORS WERE CHEERED BY NEWS OF LOWER INFLATION ACCORDING TO THE PRODUCER PRICE INDEX WHICH WAS RELEASED BY THE GOVERNMENT YESTERDAY MORNING OTHER ISSUERS MAY SOON FOLLOW THE EXAMPLES SET BY CALIFORNIA AND CONNECTICUT ONE OF THEM IS NEW YORK CITY ONE OF THE NATION'S LARGEST ISSUERS OF MUNICIPAL DEBT WE'VE THOUGHT ABOUT IT AND WE'RE CONTINUING TO THINK ABOUT IT SAID MICHAEL W GEFFRARD FIRST DEPUTY COMPTROLLER ACCORDING TO PUBLIC FINANCE OFFICIALS AT DEAN WITTER REYNOLDS INC A SUBSIDIARY OF DEAN WITTER DISCOVER & CO SEVERAL OTHER ISSUERS ARE ALSO CONSIDERING LISTING THEIR BONDS DEAN WITTER WAS THE SOLE UNDERWRITER OF THE 25 MILLION CONNECTICUT OFFERING OF GENERAL OBLIGATION BONDS WHICH WAS ONE PART OF A LARGER OFFERING THE COMPANY WILL BE A COMANAGER IN TOMORROW'S SCHEDULED OFFERING FROM THE URBAN DEVELOPMENT CORP THE NEW YORK STOCK EXCHANGE HAS AN AUTOMATED ONLINE TRADING SYSTEM THAT ALLOWS BROKERS AND DEALER TO ACCESS THE MARKET FOR BONDS LISTED ON THE EXCHANGE IF A BOND IS ACTIVELY TRADED THE LAST TRADE OF THE DAY WILL BE DISSEMINATED BY THE STOCK EXCHANGE THROUGH A VARIETY OF NEWS SERVICES INCLUDING THIS NEWSPAPER THE BIG BOARD ALREADY HAS MORE THAN 1500 CORPORATE BOND ISSUES LISTED WITH A FACE VALUE OF ABOUT 290 BILLION ONE OF THE ADVANTAGES IS THAT YOU HAVE A PRICE QUOTE IN THE PAPER EVERY DAY WHICH INDIVIDUAL INVESTORS WOULD BE ABLE TO SEE SAID MR GEFFRARD THE NEW YORK CITY OFFICIAL IN A MARKET LIKE THIS THE SPREADS ARE AWFUL SAID KEN WOODS PRESIDENT OF ASSET PRESERVATION ADVISORS INC OF ATLANTA A MONEY MANAGER WITH OVER 400 MILLION IN ASSETS UNDER MANAGEMENT WHEN AN INDIVIDUAL INVESTOR BUYS LESS THAN 100000 OF MUNICIPAL BONDS AT ONCE THE SPREAD BETWEEN THE BID AND ASK PRICE IS AT LEAST TWO POINTS IN MANY HIGHLY RATED AND EASILY TRADED MUNICIPAL BONDS SAID MR WOODS THAT MEANS THAT FOR EVERY 1000 OF BONDS THAT AN INVESTOR BUYS HE OR SHE SHELLS OUT 20 THAT GOES INTO THE POCKET OF WHOMEVER SOLD IT OFTEN THE SPREADS ARE MUCH WIDER AND MANY INVESTORS DON'T EVEN REALIZE IT BECAUSE THEY DO NOT HAVE EASY ACCESS TO CURRENT PRICES AS MANY BROKERS DO UNLIKE MANY STOCKS MOST MUNICIPAL BONDS ARE NOT LISTED ON A CENTRAL EXCHANGE WHERE INVESTORS CAN CHECK FOR THE PRICES OF THE LATEST TRANSACTION IN A PARTICULAR MUNICIPAL BOND SOME OF THESE BROKERDEALERS ARE NOT REAL FAIR WITH INDIVIDUALS WHEN THEY BUY AND SELL BONDS SAID MR WOODS BECAUSE THEY KNOW THEY'RE NOT IN COMPETITION THEY BUY THE BONDS WHERE THEY WANT TO BUY THEM FOR THE RECORD OFFICIALS IN CONNECTICUT AND AT THE URBAN DEVELOPMENT CORP WERE NOT WILLING TO DRAW A DIRECT CONNECTION BETWEEN THEIR DECISIONS TO LIST THE BONDS AND THE RECENT SCRUTINY OF THE MUNICIPAL BOND MARKET BUT OFFICIALS AT THE BIG BOARD HINTED THAT THERE WAS A CONNECTION JOHN FOYNES THE EXCHANGE'S VICE PRESIDENT OF FIXED INCOME MARKETS AGREED THAT IT WOULD PROBABLY BE CORRECT TO ASSUME THAT PRESSURES TO INCREASE DISCLOSURE HAS A PLACE TO PLAY IN THIS FOR HIS PART BENSON R COHN CONNECTICUT'S TREASURER FOR DEBT MANAGEMENT SAYS THE LISTING MAY HAVE ACTUALLY SAVED THE STATE SOME MONEY HE SAYS THE DECISION TO LIST MAY HAVE HELPED THE STATE GET A YIELD 005 PERCENTAGE POINT LOWER THAN IT WOULD HAVE WITHOUT LISTING THE BONDS THE STATE SOLD 25 MILLION OF GENERAL OBLIGATION TERM BONDS THAT MATURE IN 2012 AT A YIELD OF 565 AT PAR IN ADDITION TO A SEPARATE OFFERING OF 205 MILLION OF GENERAL OBLIGATION BONDS THAT WEREN'T LISTED IF THE BONDS THAT ARE LISTED TRADE TWO OR THREE DAYS A WEEK MR COHN SAYS THE STATE WOULD PROBABLY LIST MORE OF ITS OFFERINGS BECAUSE LISTING A BOND MAKES IT MORE LIQUID OR EASIER TO BUY AND SELL HE REASONS THAT FUTURE LISTINGS COULD SAVE THE STATE EVEN MORE MONEY IN FINANCING COSTS THERE IS A LIMIT TO HOW MANY MUNICIPAL BONDS CAN BE LISTED BIG BOARD OFFICIALS NOTED MOST MUNICIPALITIES SELL SOCALLED SERIAL BONDS WHICH COME IN SMALL AMOUNTS AND VARYING MATURITIES FOR IT TO MAKE SENSE TO LIST A BOND CITIES AND STATES WOULD HAVE TO SELL MORE SOCALLED TERM BONDS WHICH HAVE ONE SET MATURITY AND ARE USUALLY SOLD IN VERY LARGE AMOUNTS OR ENLARGE THE SIZE OF ONE OF THE MATURITIES OF THEIR SERIAL BOND OFFERINGS NEW GOVERNMENT FIGURES PROVIDED SOME REASURRANCE TO THE BOND MARKET THAT INFLATION HASN'T SPIRALED OUT OF CONTROL AND IN RESPONSE PRICES OF US TREASURY SECURITIES POSTED BIG GAINS HELPING THE MARKET HEAD HIGHER WAS THE FEDERAL RESERVE'S ANNOUNCEMENT THAT IT WAS BUYING TREASURY SECURITIES AS PART OF A TECHNICAL OPERATION BUT EVEN WITH THOSE FACTORS AIDING THE MARKET TRADERS SAID IT WAS STILL A STRUGGLE THE MARKET IS VERY COGNIZANT OF THE FACT THAT THE FED REMAINS IN A TIGHTENING MODE SAID MICHELLE LAUGHLIN SANWA SECURITIES ECONOMIST THAT MAKES IT DIFFICULT FOR THE MARKET TO BUILD UP A HEAD OF STEAM WHEN IT DOES TURN POSITIVE THE 30YEAR BOND ROSE MORE THAN 7/8 POINT WHILE THE 10YEAR NOTE ROSE NEARLY 5/8 POINT TO 95 26/32 TO YIELD 644 DOWN FROM 652 THE RALLY WAS SPARKED BY A GOVERNMENT REPORT ON FEBRUARY PRODUCER PRICES ALTHOUGH THE OVERALL 05 GAIN IN THE PPI WAS ON THE HIGH SIDE TRADERS FOUND SOME GOOD NEWS IN A SMALLERTHANFORECAST 01 GAIN IN THE PPI EXCLUDING FOOD AND ENERGY THE DATA EASED WORRIES ABOUT THE PRESENT INFLATION PICTURE BUT DIDN'T SOOTHE CONCERNS ABOUT THE FUTURE INFLATION IS STILL NOT A PROBLEM BUT THERE CONTINUES TO BE SIGNS THAT IT MAY BE A PROBLEM LATER SAID STEVE WOOD DIRECTOR OF FINANCIAL MARKETS RESEARCH AT BA SECURITIES INC BUT THE RALLY ON THE PPI DATA WASN'T EASY AT ONE STAGE THE MARKET ERASED MOST OF ITS GAINS ON DATA SUGGESTING THE MANUFACTURING SECTOR WAS HEALTHIER THAN EXPECTED IN FEBRUARY THE FED REPORTED INDUSTRIAL PRODUCTION INCREASED 04 LAST MONTH ABOVE MOST FORECASTS YOU'VE GOT A LOT OF STRENGTH IN THE MANUFACTURING SECTOR SAID SANWA'S MS LAUGHLIN AND THE STRENGTH IN THE NUMBER WILL KEEP THE FED ON TRACK TO TIGHTEN AGAIN AFTER THE INITIAL MOVE HIGHER STALLED OUT ON THE PRODUCTION DATA THE MARKET FOUND ITS SECOND WIND WHEN THE FED ANNOUNCED AT MIDDAY IT WAS BUYING COUPON SECURITIES KNOWN AS A PASS THE FED ARRANGES SUCH TRANSACTIONS IN ORDER TO MEET SEASONAL SHORTFALLS OF RESERVES IN THE BANKING SYSTEM ANALYSTS NOTE THAT WHILE THE OPERATION HAD NO MONETARY POLICY SIGIFICANCE IT ESSENTIALLY AMOUNTED TO A BIG BUYER ENTERING THE MARKET BUT THE COUPON PASS ACTUALLY PROVED TO BE A BIT OF A LETDOWN TO SOME TRADERS WHO HAD MARKED PRICES HIGHER IN ANTICIPATION OF SELLING SECURITIES TO THE FED WERE DISAPPOINTED BY THE AMOUNT OF SECURITIES THAT THE FED BOUGHT ALONG WITH THE TYPES OF MATURITIES AND THE PRICES AT WHICH THE FED DID THE TRANSACTIONS TRADERS ESTIMATED THAT TUESDAY'S PASS TOTALED IN THE NEIGHBORHOOD OF 3 BILLION WHEN THE FED LAST ARRANGED A COUPON PASS BACK IN NOVEMBER THE FED TOOK ABOUT 47 BILLION WORTH OF TREASURY SECURITIES OFF OF DEALERS HANDS DISAPPOINTMENT OVER WHAT WAS VIEWED AS AN UNAGGRESSIVE PASS CAUSED PRICES TO FALL ONCE MORE FROM THEIR HIGHS THEN AT MIDAFTERNOON THE MARKET ERASED EVEN MORE OF ITS GAINS IN RESPONSE TO DATA SUGGESTING CONSUMERS CAME OUT IN DROVES ONCE THE HARSH WINTER WEATHER STOPPED THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES & RYAN INC REPORTED CHAIN AND DEPARTMENT STORE SALES ROSE 58 IN THE FIRST TWO WEEKS OF MARCH BY LATE IN THE DAY THE MARKET WAS ABLE TO RECOVER TO THE UPPER END OF ITS TRADING RANGE BUT TRADERS DESCRIBED THE PUSH HIGHER AS A STRUGGLE THE MARKET'S ATTENTION NOW TURNS TO TODAY'S CONSUMER PRICE INDEX REPORT ECONOMISTS ARE CALLING FOR A 03 RISE IN THE OVERALL CPI WITH A 02 GAIN EXCLUDING FOOD AND ENERGY ISRAEL TOOK CENTER STAGE IN AN OTHERWISE QUIET CORPORATE BOND MARKET SELLING NEARLY 2 BILLION PRINCIPAL AMOUNT OF DEBT GUARANTEED BY THE US THROUGH THE AGENCY FOR INTERNATIONAL DEVELOPMENT THE OFFERING WAS AGGRESSIVELY PRICED AND THE YIELD SPREAD WIDENED SLIGHTLY IN SECONDARY TRADING ONE SYNDICATE OFFICIAL SAID ONE INVESTOR NOTED THAT THE ISRAELI DEBT OFFERS MORE YIELD THAN A COMPARABLE US TREASURY SECURITY ALONG WITH HIGH CREDIT QUALITY THE ISRAELI OFFERING RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC INCLUDES 1215 MILLION OF FIVEYEAR NOTES PRICED TO YIELD 602 AND 117 MILLION OF 10YEAR NOTES YIELDING 67 ALSO 226 MILLION OF 20YEAR NOTES PRICED TO YIELD 6955 AND 3331 MILLION OF 24YEAR NOTES YIELDING 718 ISRAEL ALSO OFFERED 116 BILLION PRINCIPAL AMOUNT OF ZEROCOUPON DEBT MATURING BETWEEN 2012 AND 2024 AT YIELDS OF 1144 TO 2523 AN ADDITIONAL 960 MILLION OF DEBT WAS PRICED DURING THE SESSION INCLUDING TWO OFFERINGS FROM MERRILL LYNCH & CO TOTALING 300 MILLION SUN CO'S 100 MILLION OF 10YEAR DEBT AND GTE CALIFORNIA INC'S 250 MILLION OF DEBT GTE CALIFORNIA IS A SUBSIDIARY OF GTE CORP TRADING IN THE INVESTMENTGRADE MARKET WAS LIGHT WITH PRICES FOLLOWING TREASURY ISSUES HIGHER IN THE JUNKBOND MARKET TRADING WAS LIGHT WITH PRICES GENERALLY UNCHANGED MORTGAGE SECURITIES MANAGED TO CLOSE HIGHER BUT OPTIMISM APPEARS TO REMAIN LOW THE MARKET CONTINUES TO UNDERPERFORM GOVERNMENT SECURITIES AND TRADERS SAY THAT IF ANYTHING THERE WAS LESS SELLING YESTERDAY INSTEAD OF MORE BUYING AS IN RECENT DAYS PRIMARY MARKET ACTIVITY CENTERED ON AN INCREASE IN FEDERAL NATIONAL MORTGAGE ASSOCIATION'S REMIC SERIES 199440 TO 981 MILLION FROM 900 MILLION THE STRIPS SECTOR WAS BUSIER SEVEN COMANAGERS OFFERED A 11 BILLION FANNIE MAE STRIPS TRUST 260 WHILE TWO COMANAGERS ANNOUNCED A 233 BILLION STRIPS TRUST 259 THERE WAS SPECULATION THE STRIPS FROM THESE DEALS WILL EVENTUALLY SHOW UP AS COLLATERAL FOR FUTURE REAL ESTATE MORTGAGE INVESTMENT CONDUITS ANITA RAGHAVAN AND THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 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 9403160092 940316 BUSINESS BRIEFS ALCO STANDARD CORP ACQUIRED TWO OFFICEEQUIPMENT DEALERS GRAY & CREECH INC OF RALEIGH NC AND BRUCE E LOSTY OFFICE SYSTEMS INC WATERBURY CONN TERMS WEREN'T DISCLOSED CHOCK FULL O'NUTS CORP NEW YORK COMPLETED ITS ACQUISITION OF QUIKAVA A SPECIALTYCOFFEE COMPANY BASED IN BOSTON FOR LESS THAN 1 MILLION PLUS PAYMENTS BASED ON FUTURE EARNINGS LIZ CLAIBORNE INC ENTERED INTO AN AGREEMENT TO LICENSE SPRINGS INDUSTRIES INC TO SELL A LINE OF LIZ CLAIBORNE BED BATH AND RELATED HOMEFURNISHING ACCESSORIES MESA AIRLINES INC EXTENDED TO FRIDAY THE DEADLINE FOR CCAIR INC TO RESPOND TO ITS ACQUISITION OFFER 9403160091 940316 AMERICAN EXPRESS CO PAID CHAIRMAN GOLUB 73 MILLION LAST YEAR NEW YORK AMERICAN EXPRESS CO CHAIRMAN HARVEY GOLUB RECEIVED COMPENSATION OF 73 MILLION LAST YEAR HIS FIRST YEAR AS CHAIRMAN AND CHIEF EXECUTIVE ACCORDING TO THE COMPANY'S PROXY LAST YEAR AMERICAN EXPRESS STAGED A STRONG COMEBACK UNDER MR GOLUB'S LEADERSHIP THE FINANCIALSERVICES CONCERN SOLD ITS SHEARSON RETAIL BROKERAGE DIVISION AND ADDITIONAL STAKES IN FIRST DATA CORP EARNINGS AT TRAVEL RELATED SERVICES DIVISION REBOUNDED SHARPLY IN 1993 DRIVEN BY FEWER BAD DEBTS AND COSTCUTTING MEASURES EARLIER THIS YEAR THE COMPANY ANNOUNCED IT WOULD SHED ITS LEHMAN BROTHERS INVESTMENT BANKING ARM TO CONCENTRATE ON ITS FLAGSHIP TRS BUSINESS IN ADDITION THE PROXY CONFIRMED SPECULATION THAT THE COMPANY INCURRED A 52 MILLION LOSS WHEN IT PAID FOR MR GOLUB TO RELOCATE FROM MINNESOTA THE LOSS CAME AS A RESULT OF RESELLING HIS HOME WHICH HAD STILL BEEN UNDER CONSTRUCTION WHEN MR GOLUB WAS REASSIGNED THE COMPANY ALSO PAID 780000 TO A RELOCATION SERVICE MR GOLUB'S COMPENSATION INCLUDED A SALARY OF 776923 UP FROM 650000 IN 1992 AS WELL AS A BONUS OF 1850000 MORE THAN DOUBLE THE 900000 HE RECEIVED IN 1992 WHEN HE WAS PRESIDENT OF THE COMPANY AND CHAIRMAN OF TRS HE RECEIVED 3390000 IN RESTRICTED STOCK AWARDS IN ADDITION TO HIS 73 MILLION IN COMPENSATION MR GOLUB WAS ALSO AWARDED 400000 OPTIONS WITH AN EXERCISE PRICE OF 2825 EACH THAT HAVE A PRESENT VALUE OF ABOUT 28 MILLION ONETHIRD OF THEM CAN BE EXERCISED BEGINNING NEXT YEAR AND THE REMAINING TWOTHIRDS IN 1996 AND 1997 9403160090 940316 TEXAS JOURNAL LETTERS TO THE EDITOR THE WAR RAGES ON I THINK YOUR FEB 16 ARTICLE ON THE END OF THE SUPERMARKET WAR ALL QUIET ON THE SUPERMARKET WAR FRONT IS A BIT PREMATURE AT LEAST IN DALLAS SINCE THE FIRST OF THE YEAR TOM THUMB AND KROGER HAVE BEEN RUNNING INTERMITTENT PROMOTIONS WHERE THE STORES DOUBLED COUPONS UP TO 99 CENTS ALSO NEW GROCERY STORES ARE BEING BUILT ALL OVER THE CITY I USUALLY SAVE 20 A WEEK WITH COUPONS AND SOME WEEKS AS MUCH AS ONETHIRD IF THE GROCERY PRICES GET OUT OF LINE I CAN ALWAYS SHOP AT SAM'S 9403160089 940316 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 75 MILLION OF MULTIPLE STEPUP NOTES DUE APRIL 8 1999 PRICED INITIALLY AT PAR TO YIELD 55 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES TO 57 APRIL 8 1995 AND THEN TO 6 7 AND 8 IN EACH CONSECUTIVE YEAR THE NOTES ARE NONCALLABLE FOR ONE YEAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF NOTES DUE MARCH 24 2004 PRICED INITIALLY AT PAR TO YIELD 705 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR THREE YEARS AND WAS PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO GTE CALIFORNIA INC 250 MILLION OF DEBENTURES PRICED THROUGH A COMPETITIVE BID WON BY GOLDMAN SACHS & CO AND SMITH BARNEY SHEARSON INC ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES DUE MARCH 15 2004 WERE PRICED AS 675S AT 98808 TO YIELD 6917 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 44 BASIS POINTS ABOVE TREASURYS AND IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP GTE CALIFORNIA IS A UNIT OF GTE CORP MERRILL LYNCH & CO 200 MILLION OF NOTES DUE MARCH 30 1999 PRICED AS 6375S AT 9952 TO YIELD 6489 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH NORWEST FINANCIAL INC 150 MILLION OF SENIOR NOTES DUE MARCH 15 1999 PRICED AS 625S AT 99875 TO YIELD 6279 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 375 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NORWEST FINANCIAL IS A UNIT OF NORWEST CORP SUN CO 100 MILLION OF NOTES DUE MARCH 15 2004 PRICED AS 7125S AT 99498 TO YIELD 7196 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC CALIFORNIA FEDERAL BANK FSB 150 MILLION OF NONCUMULATIVE PERPETUAL PREFERRED STOCK PRICED WITH A 10625 DIVIDEND YIELD THE 15 MILLION SHARES WERE PRICED AT 100 EACH THE ISSUE NONCALLABLE FOR FIVE YEARS IS RATED CAA BY MOODY'S INVESTORS SERVICE INC AND TRIPLEC BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC EXECUTIVE RISK INC INITIAL OFFERING OF THREE MILLION COMMON SHARES PRICED AT 12 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP JALATE LTD INITIAL OFFERING OF 900000 COMMON SHARES PRICED AT 650 EACH THROUGH UNDERWRITERS LED BY HJ MEYERS & CO AND SANDERS MORRIS MUNDY INC PRIME RETAIL INC INITIAL PUBLIC OFFERING OF 25 MILLION COMMON SHARES PRICED AT 19 EACH ACCORDING TO THE COMPANY WHICH SAID THE UNDERWRITING FIRM OF FRIEDMAN BILLINGS RAMSEY & CO ALSO IS OFFERING TWO MILLION 105 SERIES A SENIOR CUMULATIVE PREFERRED SHARES AT 25 EACH AND 61 MILLION 85 SERIES B CUMULATIVE PARTICIPATING CONVERTIBLE PREFERRED SHARES AT 25 EACH BOTH ISSUES PRICED AT PAR THERMOTREX CORP 16 MILLION COMMON SHARES PRICED AT 15375 EACH ACCORDING TO THE COMPANY NATWEST SECURITIES LTD AND LEHMAN BROTHERS INC COMANAGED THE OFFERING THERMOTREX IS A PUBLIC UNIT OF THERMO ELECTRON CORP THREEFIVE SYSTEMS INC 11 MILLION COMMON SHARES PRICED AT 50 EACH THROUGH UNDERWRITERS LED BY CHICAGO CORP AND KEMPER SECURITIES LTC PROPERTIES INC 42 MILLION COMMON SHARES PRICED AT 1325 EACH THROUGH UNDERWRITERS LED BY NATWEST SECURITIES LTD AND SMITH BARNEY SHEARSON INC CONNECTICUT 205 MILLION OF 1994 SERIES A GENERALOBLIGATION BONDS APPARENTLY WON BY A BEAR STEARNS & CO GROUP THE BONDS DUE 19952010 ARE RATED DOUBLEA BY MOODY'S AND DOUBLEAPLUS BY S&P BONDS YIELDS RANGE FROM 38 IN 1996 TO 51 IN 2003 BONDS DUE 1995 AND 200410 AREN'T REOFFERED MECKLENBURG COUNTY NC 1972 MILLION OF SERIES 1994 PUBLICIMPROVEMENT BONDS APPARENTLY WON BY A CS FIRST BOSTON INC GROUP YIELDS RANGE FROM 42 IN 1997 TO 565 IN 2012 AND 2013 MOODY'S AND S&P RATED THE BONDS TRIPLEA SOUTH CAROLINA 75 MILLION OF SERIES 1994A GENERALOBLIGATION BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 32 IN 1995 TO 56 IN 2009 MOODY'S HAS RATED THE BONDS TRIPLEA AND S&P HAS ASSIGNED A DOUBLEAPLUS RATING TENNESSEE 1612 MILLION OF 1994 GENERALOBLIGATION BONDS APPARENTLY WON BY A CS FIRST BOSTON INC GROUP YIELDS RANGE FROM 385 IN 1996 TO 57 IN 2013 AND 2014 MOODY'S HAS RATED THE BONDS TRIPLEA AND S&P HAS ASSIGNED A DOUBLEAPLUS RATING VIRGINIA HOUSING DEVELOPMENT AUTHORITY 95 MILLION OF SERIES C MORTGAGEREVENUE BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP YIELDS FOR 40 MILLION OF THE BONDS RANGE FROM 445 IN 1996 TO 63 IN 2015 YIELDS FOR THE REMAINDER RANGE FROM 44 IN 1996 TO 625 IN 2015 MOODY'S INVESTORS SERVICE INC HAS RATED THE BONDS DOUBLEA AND S&P HAS ASSIGNED A DOUBLEAPLUS RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION 233 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES STRIPS TRUST 259 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS UNDERWRITERS ARE KIDDER PEABODY & CO AND LEHMAN BROTHERS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 11 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES UNDERWRITTEN BY SEVEN COMANAGERS THE OFFERING STRIPS TRUST 260 IS BACKED BY FANNIE MAE'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 795 PLUS OR MINUS EIGHT BASIS POINTS AND A WEIGHTED AVERAGE MATURITY OF 354 MONTHS PLUS OR MINUS SIX MONTHS THE COMANAGERS ARE GREENWICH CAPITAL MARKETS WITH 300 MILLION MORGAN STANLEY & CO WITH 250 MILLION DONALDSON LUFKIN & JENRETTE SECURITIES CORP WITH 200 MILLION JP MORGAN SECURITIES INC WITH 100 MILLION PRUDENTIAL SECURITIES INC WITH 100 MILLION SALOMON BROTHERS INC WITH 100 MILLION AND LEHMAN BROTHERS INC WITH 50 MILLION CREDIT LOCAL DE FRANCE FRENCH AGENCY 200 MILLION OF 625 EUROBONDS AT ISSUE AND REOFFER PRICE 99738 DUE APRIL 26 1999 VIA FUJI INTERNATIONAL FINANCE PLC BONDS YIELD 6312 A MARGIN OF 26 BASIS POINTS OVER COMPARABLE US TREASURY FEES 025 EBARA CORP JAPAN 160 MILLION MARKS OF 1 EUROBONDS WITH EQUITY WARRANTS ATTACHED DUE MARCH 31 1998 AT ISSUE PRICE PAR VIA DRESDNER BANK AG TERMS FIXED MARCH 24 WARRANTS EXERCISABLE TO PURCHASE COMPANY SHARES AT INDICATED PREMIUM 25 FROM APRIL 19 TO MARCH 27 1998 FEES 225 NEW ZEALAND SOVEREIGN 1 BILLION OF FLOATINGRATE EURONOTES DUE APRIL 1999 AT ISSUE AND REOFFER PRICE 9978 VIA MORGAN STANLEY & CO INTERNATIONAL LTD AND UBS LTD PAYABLE QUARTERLY AT 0125 POINT BELOW THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE CALLABLE QUARTERLY AT PAR FROM APRIL 1996 FEES 015 PETROLEOS MEXICANOS MEXICO 400 MILLION OF FLOATINGRATE EURONOTES DUE APRIL 7 1997 IN TWO TRANCHES AT ISSUE AND REOFFER PRICE PAR VIA CHASE INVESTMENT BANK AND SWISS BANK CORP FIRST 200 MILLION TRANCHE AT COUPON OF THREEMONTH DOLLAR LIBOR PLUS 205 BASIS POINTS WITH INTEREST ACCRUING ONLY ON DAYS WHEN THREEMONTH LIBOR IS WITHIN 025 POINT BELOW TO 05 POINT ABOVE QUARTERLY COUPON FIXING SECOND 200 MILLION TRANCHE AT COUPON OF THREEMONTH DOLLAR LIBOR PLUS 85 BASIS POINTS GUARANTORS PEMEXEXPLORACION Y PRODUCCION PEMEXREFINANCION PEMEXGAS Y PETROQUIMICA BASICA AND PEMEXPETROQUIMICA FEES 0375 PAYABLE QUARTERLY ISRAEL SOVEREIGN 196 BILLION OF DEBT THROUGH UNDERWRITERS LEHMAN BROTHERS INC AND BEAR STEARNS & CO THE STATE SOLD 1215 MILLION OF NOTES MATURING FEB 15 1999 AS 6S AT 999226 TO YIELD 602 THE DEBT WAS PRICED AT A SPREAD OF SEVEN BASIS POINTS ABOVE TREASURYS THE SECOND TRANCHE 117 MILLION OF NOTES MATURING IN FEB 15 2004 WAS PRICED AS 6625S AT 994712 TO YIELD 67 THE DEBT WAS PRICED AT A SPREAD OF 18 BASIS POINTS ABOVE TREASURYS THE THIRD TRANCHE 22597 MILLION OF NOTES MATURING IN 2014 WAS PRICED AS 66S AT 971208 TO YIELD 6955 THE DEBT HAS A 1224YEAR AVERAGE LIFE AND WAS PRICED AT A SPREAD OF 435 BASIS POINTS ABOVE TREASURYS THE FOURTH TRANCHE 33306 MILLION OF NOTES MATURING IN 2018 WAS PRICED AS 68S AT 964043 TO YIELD 718 THE DEBT HAS A 1625YEAR AVERAGE LIFE AND WAS PRICED AT 66 BASIS POINTS ABOVE TREASURYS ISRAEL ALSO SOLD 1158 BILLION OF STRIPS IN 24 TRANCHES MATURING BETWEEN AUG 15 2012 AND FEB 15 2024 THE DEBT YIELDS BETWEEN 1144 AND 2523 AND WAS PRICED 18 TO 22 BASIS POINTS ABOVE TREASURYS THE DEBT IS RATED TRIPLEA BY MOODY'S AND IS BACKED BY THE US ACTING THROUGH THE AGENCY FOR INTERNATIONAL DEVELOPMENT LEHMAN BROTHERS INC LEADMANAGED THE NOTES MATURING IN 1999 AND 2004 WHILE BEAR STEARNS & CO LEADMANAGED THE REMAINING TRANCHES 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 9403160088 940316 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ARGOSY GAMING CO A PROPOSED OFFERING OF 200 MILLION OF CONVERTIBLE SUBORDINATED NOTES DUE 2001 WITH AN OVERALLOTMENT OPTION FOR 30 MILLION VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP CJ LAWRENCE/DEUTSCHE BANK SECURITIES CORP AND MONTGOMERY SECURITIES GROUP TECHNOLOGIES CORP AN INITIAL OFFERING OF 25 MILLION COMMON SHARES AT AN EXPECTED 1517 A SHARE WITH AN OVERALLOTMENT OPTION FOR 375000 ADDITIONAL SHARES VIA LEHMAN BROTHERS AND NEEDHAM & CO KEYMARKET COMMUNICATIONS INC AN INITIAL OFFERING OF 4150000 CLASS A COMMON SHARES AT AN ANTICIPATED 13 A SHARE WITH AN OVERALLOTMENT OPTION FOR 622500 ADDITIONAL SHARES VIA CS FIRST BOSTON AND ALEX BROWN & SONS INC MICROAGE INC AN OFFERING OF 125 MILLION IN SUBORDINATED CONVERTIBLE DEBENTURES DUE 2004 WITH AN OVERALLOTMENT OPTION OF UP TO 18750000 OF DEBENTURES VIA DONALDSON LUFKIN & JENRETTE BEAR STEARNS & CO MONTGOMERY SECURITIES AND ROBINSONHUMPHREY CO PT POLYSINDO EKA PERKASA AN OFFERING OF UP TO 200 MILLION OF SENIOR NOTES DUE 2004 VIA MERRILL LYNCH & CO RURAL/METRO CORP AN OFFERING OF 1750000 COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR 262500 ADDITIONAL SHARES VIA FURMAN SELZ INC AND WILLIAM BLAIR & CO WABAN INC AN OFFERING OF 100 MILLION OF SENIOR SUBORDINATED NOTES DUE 2004 VIA BEAR STEARNS 9403160087 940316 PEMEX TO RECEIVE 11 BILLION LOAN AS BANKS RESUME LENDING TO MEXICO BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY JP MORGAN & CO AND TWO OTHER BANKS ARE ORGANIZING A 11 BILLION SYNDICATED LOAN TO PETROLEOS MEXICANOS MARKING THE FIRST BIG INFUSION OF BANK CREDIT TO MEXICO IN YEARS PETROLEOS MEXICANOS OR PEMEX MEXICO'S STATEOWNED OIL GIANT COULD HAVE EASILY LINED UP THE MONEY IN THE INTERNATIONAL BOND MARKETS BUT THE NEW LENDING FACILITY IS A DELIBERATE MOVE BY THE MEXICAN GOVERNMENT TO BRING BACK FOREIGN BANK CREDIT WHICH HAS BEEN ALMOST NONEXISTENT SINCE THE DEBT CRISIS HERE 12 YEARS AGO MEXICO HAS BEEN A NEAR PARIAH IN THE INTERNATIONAL BANK LOAN MARKET SINCE 1982 WHEN IT DEFAULTED ON SOME 80 BILLION IN FOREIGN LOANS ABOUT 50 BILLION OF WHICH REPRESENTED DIRECT CREDITS FROM FOREIGN BANKS THIS IS A LANDMARK MEXICO IS REENTERING THE SYNDICATEDLOAN MARKET SAID EDUARDO CEPEDA MANAGING DIRECTOR AT JP MORGAN'S MEXICO CITY OFFICE WE CAN'T BE TELLING OUR INVESTORS THAT MEXICO IS A GREAT STORY AND NOT BE PUTTING OUR OWN MONEY INTO IT THE BANKS APPARENTLY HAVE CONFIDENCE IN THE CONTINUITY OF MEXICO'S ECONOMIC REFORMS NO MATTER WHO WINS THE AUGUST PRESIDENTIAL ELECTIONS AT A TIME WHEN MANY INVESTORS DON'T MEXICAN STOCK PRICES FOR EXAMPLE HAVE FALLEN MORE THAN 15 FROM THEIR ALLTIME HIGHS HIT IN EARLY FEBRUARY AND THE PESO HAS WEAKENED AGAINST THE DOLLAR BUT WHILE THE LOAN DOES REPRESENT A RETURN OF BANK LENDING TO MEXICO THE BANKS' APPROACH IS CAUTIOUS RATHER THAN A STRAIGHT UNSECURED LOAN THE PROGRAM REMAINS LINKED TO TRADE AND SALES OF OIL ESSENTIALLY THE BANKS ARE UNDERWRITING PEMEX'S DEALINGS IN THE INTERNATIONAL OIL MARKETS BY PLEDGING TO PAY IF PEMEX DOES NOT BY THE TIME THE DEAL CLOSES SEVERAL BANKS FROM AROUND THE WORLD ARE EXPECTED TO TAKE A CHUNK OF THE RISK THE FIRST TIME IN MORE THAN A DECADE THAT A BANKING SYNDICATE HAS LOANED TO MEXICO IN THIS SIZE COMING IN AN ELECTION YEAR ANY LARGE LOAN TO A GOVERNMENTOWNED ORGANIZATION IS BOUND TO DRAW SCRUTINY THAT'S APT TO BE PARTICULARLY TRUE THIS YEAR GIVEN THE COUNTRY'S HIGHLY CHARGED POLITICAL CLIMATE FOLLOWING THE CHIAPAS UPRISING IN JANUARY STILL GIVEN PEMEX'S CENTRAL ROLE IN THE MEXICAN ECONOMY THE LOAN IS LIKELY TO BE VIEWED POSITIVELY AS HELPFUL TO THE COUNTRY AS A WHOLE RATHER THAN ANY PARTICULAR POLITICAL FACTION THREE BANKS WILL LEAD THREE DIFFERENT SECTIONS OF THE LOAN JP MORGAN WILL UNDERWRITE A 500 MILLION TWOYEAR LOAN TO BACK UP A NEW US BANKER'S ACCEPTANCE PROGRAM BANKERS' ACCEPTANCES ARE SHORTTERM UNSECURED OBLIGATIONS WHEREBY A COMPANY PLEDGES TO REPAY DEBT USING THE PROCEEDS IT RECEIVES BANKAMERICA CORP'S BANK OF AMERICA UNIT WILL UNDERWRITE A 300 MILLION STANDBY LETTER OF CREDIT TO SHORE UP PEMEX'S US COMMERCIALPAPER PROGRAM INDUSTRIAL BANK OF JAPAN LTD WILL UNDERWRITE A 300 MILLION BANKER'S ACCEPTANCE PROGRAM FOR PEMEX IN JAPAN ACCORDING TO JP MORGAN ALL THREE BANKS ARE EXPECTED TO SELL OFF PIECES OF THEIR LOANS JP MORGAN PLANS TO KEEP ABOUT 75 MILLION OF ITS LOAN PEMEX HAD THE LARGEST TRADEFINANCE PROGRAM IN THE WORLD IN THE EARLY 1980S BUT CREDITS WERE CUT DOWN SHARPLY AFTER THE OIL COMPANY NEARLY SLIPPED INTO DEFAULT THE MEXICAN GOVERNMENT WAS SIPHONING SO MUCH CASH OUT OF PEMEX IN 1982 THAT THE COMPANY BEGAN TO BORROW MORE MONEY FOR OIL SHIPMENTS THAN IT WAS ACTUALLY SHIPPING OR EVEN EXPECTED TO PRODUCE IN A GIVEN YEAR THE US FEDERAL RESERVE INTERVENED RULING IN FAVOR OF THE PRACTICE BUT ONLY TO SAVE THE BANKS AND PEMEX THE PAIN OF TECHNICAL DEFAULT ACCORDING TO SOME FINANCIAL HISTORIANS SINCE THAT TIME INTERNATIONAL BANKS HAVE LARGELY RETREATED PLEDGING VERY FEW NEW CREDITS TO MEXICO A 1989 RESTRUCTURING PROGRAM KNOWN AS THE BRADY PLAN HELPED RESTORE MEXICO'S CREDIBILITY IN THE INTERNATIONAL BOND MARKETS SINCE THEN MEXICAN CORPORATIONS SUCH AS CEMENTOS MEXICANOS HAVE BEEN ABLE TO LAUNCH 1 BILLION BOND ISSUES THE TROUBLE IS THAT MEXICO ISN'T RATED INVESTMENTGRADE BY EITHER OF THE TWO MAIN US CREDITRATING AGENCIES CONSEQUENTLY MEXICAN BONDS ARE LARGELY HELD BY INVESTMENT FUNDS WITH SPECIAL RISK CHARACTERISTICS OR BY SPECULATORS THESE INVESTORS ARE ALL TOO READY TO SELL WHEN YIELDS RISE ON BETTERGRADE INVESTMENTS AS RECENT WEEKS HAVE SHOWN PEMEX IS EXPECTED TO REQUIRE MORE BORROWINGS AND FINANCING IN THE MONTHS TO COME GEORGE BAKER AN ENERGY ANALYST WITH AN OAKLAND CALIF FIRM THAT BEARS HIS NAME SAYS PEMEX NEEDS MORE REFINING CAPACITY AT A COST OF 2 BILLION PEMEX OFFICIALS WERE UNAVAILABLE FOR COMMENT SEPARATELY PEMEX ALSO LAUNCHED A 400 MILLION THREEYEAR FLOATINGRATE PROGRAM IN THE INTERNATIONAL MARKETS YESTERDAY 9403160086 940316 TEXAS JOURNAL WINNERS & LOSERS MUSICAL BASEBALL FANS CLASSICAL PIANIST VAN CLIBURN WILL PERFORM THE NATIONAL ANTHEM AT THE HOME OPENER OF THE RANGERS' NEW STADIUM BEEVILLE THIS SOUTH TEXAS CITY WAS AWARDED 57 MILLION IN FEDERAL GRANTS TO HELP CONVERT CHASE NAVAL AIR STATION FROM MILITARY TO CIVILIAN USE BOOZERS DALLAS DECLINED A REQUEST BY WORLD CUP SOCCER TOURNAMENT ORGANIZERS TO PROHIBIT ALCOHOL SALES IN THE CITY ON GAME DAYS THIS SUMMER ALTHOUGH IT WILL BAN SALES AT THE GAMES THEMSELVES METROPOLITAN LIFE TEXAS REGULATORS ASKED THE COMPANY TO REFUND PREMIUMS TO AS MANY AS 100000 POLICYHOLDERS UNLESS MET LIFE CAN PROVE THEY WEREN'T DEFRAUDED CARSWELL PLANS TO TRANSFER THOUSANDS OF RESERVISTS TO THE DEACTIVATED AIR FORCE BASE COULD BE DELAYED BY CALIFORNIA EARTHQUAKE CLEANUP COSTS JR WANNABES MORE THAN 400 GERMAN INVESTORS WERE DUPED INTO BUYING TEXAS OIL PROPERTIES AT INFLATED PRICES IN THE MID1980S SAY GERMAN AUTHORITIES 9403160085 940316 PEPPERAND SALT WHO'VE YET TO GET OFF THE GROUND KNOW THYSELF IS GOOD ADVICE KEEP IT TO THYSELF IS EVEN BETTER 9403160084 940316 LEISURE & ARTS TARHEELS PONDER HOLOCAUST BY BOB DAVIS WASHINGTON DC SHORTLY AFTER THE ARTILLERY POUNDING SARAJEVO FINALLY FALLS SILENT A NOISY BUSLOAD OF NORTH CAROLINA POSTMASTERS AMBLES TO THE ENTRANCE OF THE HOLOCAUST MUSEUM A MEMORIAL TO AN EARLIER EUROPEAN SLAUGHTER I REALLY DON'T KNOW WHAT TO EXPECT FRETS BOB HARING DURHAM'S POSTMASTER I DO THAT'S WHAT MAKES ME NERVOUS SAYS HIS GRIMFACED FRIEND SHERRILL TAYLOR WHO HAILS FROM CURRITUCK FORTY POSTMASTERS LINE UP BEFORE THE MUSEUM ANOTHER EIGHT ARE SO ANXIOUS THAT THEY WON'T GET OFF THE BUS AND HEAD OFF TO SOME OF WASHINGTON'S CHEERIER SITES INSTEAD BUT THE MAJORITY JOIN THE SELLOUT CROWD THAT LINES UP OUTSIDE THE MUSEUM EVERY DAY WHAT ACCOUNTS FOR THE ASTONISHING POPULARITY OF THE US HOLOCAUST MEMORIAL MUSEUM A FORBIDDING PLACE COMMEMORATING AN UNSPEAKABLE HORROR COMMITTED FAR AWAY SINCE IT OPENED IN APRIL LAST YEAR ABOUT ONE MILLION PEOPLE HAVE TROOPED THROUGH ADVANCE TICKETS FOR WEEKENDS ARE SOLD OUT A MONTH AHEAD LOCALLY ONLY REDSKINS TICKETS ARE TOUGHER TO GET SOME OF THE APPEAL IS EASY ENOUGH TO EXPLAIN THIS IS WASHINGTON'S NEWEST MUSEUM IT'S A MAGNET FOR SCHOOLS PREACHING TOLERANCE HOLOCAUST BOOKS AND MOVIES HAVE BECOME A STAPLE OF POPULAR CULTURE SCHINDLER'S LIST IS A MULTIPLE OSCAR NOMINEE UNSURPRISINGLY JEWS MAKE UP A MAJOR PART OF THE VISITING THRONG ABOUT 38 ACCORDING TO A MUSEUM SURVEY TAKEN LAST SEPTEMBER BUT SURPRISINGLY PERHAPS THEY ARE FAR FROM A MAJORITY THE MUSEUM'S REACH IS DEEPER ITS GRIP FIRMER ON A MUCH MORE DIVERSE PUBLIC THAN ANYONE SUSPECTED THE MUSEUM TELLS A FRIGHTFUL TALE THAT MANY FEEL COMPELLED TO HEAR AND WITH THE HEARING TELL OTHERS THE MUSEUM LOOSENS TONGUES DREDGES MEMORIES UNEARTHS FEARS THERE ISN'T A JEW AMONG THE VISITORS FROM THE NORTH CAROLINA CHAPTER OF THE NATIONAL ASSOCIATION OF POSTMASTERS OF THE UNITED STATES FEW OF THE POSTMASTERS SAY THEY KNOW MUCH ABOUT THE HOLOCAUST OR HAVE GIVEN IT MUCH THOUGHT BUT WHEN THEY PLANNED THEIR ANNUAL TRIP TO THE CAPITOL TO LOBBY CONGRESS SHEILA HARRELL NEW LONDON'S POSTMASTER MADE SURE TO INCLUDE A HOLOCAUST MUSEUM TOUR DURING THEIR VISIT ONE OF THE GROUP'S MEMBERS HAD READ A BOOK BY NAZIHUNTER SIMON WIESENTHAL GREW INTRIGUED WITH THE ERA AND PUSHED FOR THE MUSEUM VISIT MRS HARRELL'S HUSBAND JOE ALSO WANTED TO GO BADLY WORLD WAR II IS PERSONAL FOR JOE HIS FATHER PARACHUTED INTO EUROPE AND LATER DIED OF WAR INJURIES WHEN JOE WAS JUST EIGHT THE REST OF THE GROUP CLOSE FRIENDS FROM SOME OF THE TARHEEL STATE'S TINIEST HAMLETS FIGURED THAT IF MRS HARRELL THOUGHT IT WAS IMPORTANT TO GO THEY'D GO TOO ANYWAY THEY EXPLAIN RURAL POSTMASTERS ARE SUPPOSED TO KEEP UP WITH THE LATEST EVENTS AND SPREAD THE NEWS BACK HOME THEY CONSIDER THEMSELVES PURVEYORS OF INFORMATION FONTS OF GOSSIP FOR TOWNS WITH NAMES LIKE ORRUM CERRO GOREA OR TUCKASEGEE WE'RE LIKE LOCAL BARTENDERS PEOPLE TELL US EVERYTHING SAYS NORMA O'KELLEY OF CULLOWHEE THE HOME OF WESTERN CAROLINA UNIVERSITY AND NOT MUCH ELSE NEVERTHELESS OVER DINNER AT A LOCAL STEAKHOUSE ON THE EVE OF THE MUSEUM VISIT MANY OF THEM ARE CLEARLY NERVOUS ABOUT WHAT THEY ARE GOING TO SEE MRS HARRELL SAYS SHE DREADS THE TOUR MR HARRELL FIGURES THE MUSEUM WILL BE SOMETHING LIKE THE MOVIE APOCALYPSE NOW WITH THE KILLING THE GORE THE BLOOD BUT AS THE POSTMASTERS LEARN THE MUSEUM IS FAR MORE SUBTLE FAR LESS EASY TO DISMISS THAN SOME CINEMATIC CHAMBER OF HORRORS THE MUSEUM'S BRILLIANCE IS ITS ABILITY TO CREATE A SENSE OF THE GHETTO'S CLAUSTROPHOBIA AND IMPENDING DOOM AND TO GIVE A HUMAN FACE TO THE VAST IMPERSONAL MASSACRE THE POSTMASTERS QUICKLY SPLIT UP SOME LINGER OVER DISPLAYS OF GHETTO SCENES OTHERS HURRY THROUGH DOMINICK SPADARO PRESIDENT OF THE GROUP GETS ANGRY A WIRY EXMARINE FROM A COASTAL TOWN CALLED ATLANTIC BEACH HE STARES AT A VIDEO IMAGE OF A YOUNG GIRL IN THE WARSAW GHETTO PEERING OVER A DEAD GIRL EVEN YOUNGER AS THE CROWD BACKS UP BY A DISPLAY DESCRIBING THE MOBILE KILLING SQUADS THAT HUNTED DOWN JEWS AND COMMUNISTS HE CHATTERS NERVOUSLY ABOUT BRINGING WAYWARD KIDS THROUGH THE MUSEUM MAYBE THAT HE SAYS WOULD SHOCK THEM AWAY FROM VIOLENCE MR SPADARO SAID HE HAD COME EXPECTING TO SEE SOME CELEBRATION OF AMERICA'S ROLE IN THE WAR BUT INSTEAD LEARNED OF THE US DECISION AGAINST BOMBING THE DEATH CAMPS THERE'S NO WAY WE DID ALL WE COULD HE SAYS NOW WITH BOSNIA HE ASKS ARE WE DOING EVERYTHING WE CAN TO HELP YOU CAN'T JUST REMEMBER MISTAKES YOU HAVE TO LEARN FROM THEM MR HARING THE DURHAM POSTMASTER SAYS HE WAS BROUGHT UP SHORT BY A ROOM FILLED WITH SHOES STRIPPED FROM PRISONERS ARRIVING AT MAJDANEK IN POLAND DUSTY AND STIFF WITH AGE THEY ARE THE LAST WITNESSES TO THOSE PEOPLE HE SHUDDERS ECHOING THE WORDS OF A YIDDISH POEM INSCRIBED ON THE WALL HE'S HAD THIS FEELING OF LOSS AND COMPREHENSION ONCE BEFORE HE SAYS AT THE ETERNAL FLAME AT JOHN F KENNEDY'S GRAVE CHARLES HUNTLEY'S EPIPHANY COMES BEFORE A DISPLAY OF FLAGS COMMEMORATING THE US ARMY UNITS THAT LIBERATED DEATH CAMPS THERE HE FINDS THE NAME OF THE CAMP FREED BY HIS INFANTRY CORPS DORAMITTELBAU FOR 50 YEARS THE NAME HAD ELUDED HIM ALL HE COULD REMEMBER WAS A TANK BURSTING THROUGH A GATE AND A GAUNT PRISONER SMILING AT HIM HIS OUTFIT WITHDREW QUICKLY AFTERWARDS THE EVENING BEFORE THE QUIET WHITEHAIRED MAN WANTED ONLY TO TALK OF A POSTMAN'S SHRINKING RETIREMENT PAY NOW THE STORIES FLOW FREELY HOW HIS BERLINBORN SERGEANT SHOUTED OUT IN GERMAN FOR A GERMAN SOLDIER TO HALT AND SHOT HIM QUICKLY WHEN HE DIDN'T HOW SOME FRIENDS GOT DRUNK AND SET OUT TO CAPTURE A GERMAN TOWN AND WERE KILLED QUICKLY WITH THE BLURP OF A MACHINE GUN I SAW A LOT OF THINGS BY THE SIDE OF THE ROAD ANIMALS DEAD PEOPLE DEAD SAYS THE RETIRED 68YEAROLD POSTMASTER FROM LENOIR THIS ISN'T A HAPPY PLACE HE SAYS OF THE MUSEUM IT TELLS A STORY AND IT'S A SAD STORY BACK AT THE QUALITY HOTEL ON CAPITOL HILL MRS HARRELL AND HER HUSBAND ARE GETTING DRESSED FOR A DINNER OF NAPUC OFFICERS AS USUAL SHE'S AS BUBBLY AS SPRING WATER BUT RECALLING THE DISPLAYS OF HANDICAPPED CHILDREN SINGLED OUT FOR EXTERMINATION SHE DISSOLVES INTO TEARS WHAT ABOUT BUTCH SHE CRIES OUT THE NAME OF HER BROTHER WHO CAN'T WALK WITHOUT ARMCRUTCHES HE WOULD HAVE BEEN KILLED TOO POSTOFFICE CUSTOMERS IN NEW LONDON ARE ABOUT TO HEAR AN EARFUL ABOUT THE HOLOCAUST MUSEUM MRS HARRELL SAYS THERE'S NO WAY YOU CAN SEE THAT EXHIBIT AND NOT TELL EVERYONE ABOUT THE HORROR YOU SAW MR DAVIS IS A REPORTER IN THE JOURNAL'S WASHINGTON BUREAU 9403160083 940316 WHO'S NEWS CLINTON SELECTS NESS TO FILL SEAT ON FCC VACATED BY DUGGAN WASHINGTON PRESIDENT CLINTON SELECTED SUSAN NESS A WASHINGTON ATTORNEY TO FILL A VACANT SEAT ON THE FEDERAL COMMUNICATIONS COMMISSION MS NESS A COMMUNICATIONS ATTORNEY AND FORMER FUNDRAISER FOR THE CLINTONGORE CAMPAIGN HAD BEEN A SENIOR LENDER AND LATER A GROUP HEAD IN THE COMMUNICATIONSINDUSTRIES DIVISION OF AMERICAN SECURITY BANK IN WASHINGTON SHE HAD BEEN ASSISTANT COUNSEL TO THE HOUSE BANKING COMMITTEE AND HAD FOUNDED AND DIRECTED THE JUDICIALAPPOINTMENTS PROJECT OF THE NATIONAL WOMEN'S POLITICAL CAUCUS ON SENATE CONFIRMATION SHE WILL FILL A SEAT VACATED BY ERVIN DUGGAN MS NESS 45 YEARS OLD HAS A LAW DEGREE FROM BOSTON COLLEGE LAW SCHOOL AND A MASTER'S DEGREE IN BUSINESS ADMINISTRATION FROM THE WHARTON SCHOOL AT THE UNIVERSITY OF PENNSYLVANIA 9403160082 940316 BUSINESS BRIEF COLUMBIA REAL ESTATE INVESTMENTS HOLDERS AGREE TO DISSOLVE AND LIQUIDATE THE COMPANY SHAREHOLDERS OF COLUMBIA REAL ESTATE INVESTMENTS INC APPROVED A PLAN TO DISSOLVE AND LIQUIDATE THE COMPANY DAVID J GALLITANO CHAIRMAN SAID THE FIRST DISTRIBUTION IS EXPECTED IN THE NEXT 60 TO 90 DAYS WITH A FINAL DISTRIBUTION OF THE REMAINING PROCEEDS AFTER ALLOWANCES FOR EXPENSES WITHIN 12 MONTHS A SPOKESWOMAN PUT THE ESTIMATED VALUE OF THE DISSOLUTION AT 9 TO 925 A SHARE IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY COLUMBIA SHARES CLOSED AT 850 DOWN 125 CENTS A SHARE THE COLUMBIA MD COMPANY INVESTS IN RESIDENTIAL MORTGAGES AND OTHER MORTGAGE DERIVATIVE PRODUCTS 9403160080 940316 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9403160079 940316 INTERNATIONAL BRIEF BAYERISCHE MOTOREN WERKE AG BMW'S ACQUISITION OF ROVER CLEARS EUROPEAN UNION PANEL THE EUROPEAN UNION COMMISSION CLEARED THE ACQUISITION OF UK CAR MAKER ROVER GROUP HOLDINGS PLC FROM BRITISH AEROSPACE PLC BY GERMANY'S BAYERISCHE MOTOREN WERKE AG IN A STATEMENT THE COMMISSION SAID THE LINKUP WOULD ONLY HAVE A LIMITED EFFECT IN TERMS OF INDUSTRY CONCENTRATION BMW AND ROVER'S COMBINED SHARE OF THE EUROPEAN PASSENGERCAR MARKET WILL BE EQUAL TO 66 BASED ON 1993 REGISTRATIONS THE ACQUISITION MAINLY AFFECTS THE LARGE PASSENGERCAR MARKET IN SOME PARTS OF THE MARKET INCLUDING THE UK AND GERMANY BMW'S SHARE OF THE LARGECAR SEGMENT WILL EXCEED 25 HOWEVER THE COMMISSION SAID THE TAKEOVER WILL INCREASE BMW'S MARKET SHARE ONLY SLIGHTLY EVEN IN THE UK 9403160078 940316 PANEL UPHOLDS A KEY PROVISION OF HEALTH PLAN EMPLOYERS TO STILL HELP PAY FOR INSURANCE COVERAGE DESPITE GOP PROTESTS BY DAVID ROGERS AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON HOUSE WAYS AND MEANS DEMOCRATS UPHELD A CENTRAL PREMISE OF THE CLINTON ADMINISTRATION'S HEALTHCARE INITIATIVE THE PROPOSED REQUIREMENT THAT ALL EMPLOYERS HELP BUY HEALTH INSURANCE FOR THEIR WORKERS THE 65 VOTE REPRESENTED A BADLY NEEDED VICTORY FOR THE WHITE HOUSE IT SET THE TONE FOR A DAY OF PARTISAN SKIRMISHING IN THE PANEL'S HEALTH SUBCOMMITTEE OVER A DEMOCRATICBACKED ALTERNATIVE TO THE CLINTON PLAN THE MEASURE WOULD ABANDON OR STREAMLINE MAJOR PARTS OF THE PRESIDENT'S PROPOSAL AND ESTABLISH A NEW GOVERNMENTRUN MEDICARELIKE PROGRAM FOR SMALL BUSINESSES AND LOWERINCOME WORKERS UNABLE TO GET PRIVATE COVERAGE ITS BASIC BENEFITS PACKAGE WOULD BE LESS EXTENSIVE THAN THE PRESIDENT'S BUT LIKE MR CLINTON'S PLAN THE ALTERNATIVE WOULD RELY ON EMPLOYER CONTRIBUTIONS TO HELP ACHIEVE THE GOAL OF ASSURING COVERAGE FOR ALL AMERICANS THE PANEL'S FOUR REPUBLICANS JOINED BY REP MIKE ANDREWS D TEXAS TOOK IMMEDIATE AIM AT THE SOCALLED EMPLOYER MANDATE IN AMENDMENTS BUT AS THE VOTING SHOWED DEMOCRATS RETAIN A WORKING MAJORITY WHICH DEMOCRATIC LEADERS HOPE WILL ENABLE THEM TO MOVE THE BILL TO THE FULL WAYS AND MEANS COMMITTEE FOR ACTION NEXT MONTH REP JOHN LEWIS D GA SAID THE REPUBLICANLED ASSAULT ON THE EMPLOYER MANDATE WOULD BE A DAGGER IN THE HEART OF THE BILL REPUBLICANS PORTRAYED THE ISSUE AS A FAULTLINE DIVIDING THE TWO PARTIES IN THEIR APPROACH TO HEALTH REFORM IT IS A DAGGER AT THE HEART OF SMALL BUSINESS SAID CALIFORNIA REP BILL THOMAS THE SUBCOMMITTEE'S RANKING MINORITY MEMBER THIS IS NOT SOCIAL SECURITY IT IS THE MOTHER OF ALL ENTITLEMENTS BY THE 65 MARGIN THAT UPHELD THE EMPLOYER MANDATE THE PANEL BEAT BACK A GOP EFFORT TO CAP TAX BENEFITS OF CORPORATIONS AND INDIVIDUALS FOR EMPLOYERFINANCED HEALTHINSURANCE PLANS ADVOCATES SAY LIMITING THE TAX BENEFITS WOULD STIMULATE MARKET FORCES TO REDUCE HEALTH COSTS BY MAKING PURCHASERS OF HEALTH SERVICES MORE SENSITIVE TO PRICES YESTERDAY'S DEBATE LEFT OPEN THE POSSIBILITY OF FUTURE COMPROMISE ON THE ISSUE AS DEMOCRATS LOOK FOR RESOURCES TO SOFTEN THE BURDEN THE LEGISLATION WOULD IMPOSE ON SMALL BUSINESSES AND LOWERINCOME WORKERS ONE OPTION WOULD INVOLVE REDUCING THE MANDATE ON SMALL EMPLOYERS AND OFFERING AN INDIVIDUAL TAX CREDIT TO HELP WORKERS PAY FOR THE REMAINDER REP JIM MCCRERY R LA WHO OFFERED YESTERDAY'S TAX AMENDMENT SAID UNION WORKERS WHO HAVE NEGOTIATED FOR RICHER HEALTH BENEFITS COULD CONTINUE TO RECEIVE TODAY'S FAVORABLE TREATMENT THROUGH THE LENGTH OF THEIR CONTRACTS AND REP FORTNEY PETE STARK THE SUBCOMMITTEE CHAIRMAN ADMITTED HE HAD FLIRTED WITH THE IDEA OF CAPPING THE TAX BENEFITS FOR AT LEAST WEALTHY INDIVIDUALS TO HELP PAY FOR COVERAGE FOR LOWERWAGE WORKERS IT IS SOMETHING THAT MUST BE LOOKED AT SAID REP BENJAMIN CARDIN D MD OF THE CURRENT POLICY TAX POLICY WE CAN NO LONGER CONTINUE THE UNLIMITED DEDUCTIBILITY POLICIES WE HAVE HAD IN THE PAST IN YESTERDAY'S ACTION REP ANDREWS WAS THE DEMOCRATS' MOST CONSISTENT DEFECTOR ALTHOUGH THE PANEL'S SIX OTHER DEMOCRATS ARE RESTIVE TOO REP SANDER LEVIN D MICH SERVED NOTICE THAT HE WANTS TO DELAY THE EFFECTIVE DATE FOR MUCH OF THE BILL BY A YEAR BUT REP GERALD KLECZKA D WIS AFTER WAVERING IN THE PAST SOUNDED A MORE POSITIVE NOTE LAST NIGHT DESPITE HIS CONTINUED RESERVATIONS ABOUT SOME PROVISIONS MR STARK FOR HIS PART WAS CLEARLY PLEASED WITH THE TENOR OF THE DAY I'M SURE THAT EVERY ONE OF THE SIX DEMOCRATS WHO PARTICIPATED WANT TO GET A BILL OUT SAID THE CALIFORNIAN I THINK THEY WILL DESPITE HIS INITIAL OPPOSITION TO THE EMPLOYER MANDATE MR ANDREWS LATER JOINED HIS SIX DEMOCRATIC COLLEAGUES IN SUPPORTING AN ADDITIONAL REQUIREMENT FOR EMPLOYERS OFFERED BY MR KLECZKA THE AMENDMENT WOULD REQUIRE EMPLOYERS OF WORKERS WITH NONWORKING SPOUSES TO PAY 80 OF THE COST OF HEALTH POLICIES COVERING THE WORKERS' ENTIRE FAMILIES REP LEWIS SAID THE PROVISION WAS IMPORTANT IN GUARANTEEING HEALTH COVERAGE FOR WOMEN REP NANCY JOHNSON R CONN PROTESTED THE PROVISION DECLARING WE ARE HEAPING COSTS ON SMALL BUSINESSES AT SUCH A RATE THAT THE DISINCENTIVE TO EXPAND EMPLOYMENT IS BECOMING VERY REAL LATER SHE WARNED THIS WILL PUT SOME FIRMS IN MY DISTRICT OUT OF BUSINESS MAKE NO MISTAKE ABOUT IT THE AMENDMENT PASSED ON A 74 PARTYLINE VOTE DEMOCRATS ALSO NARROWLY DEFEATED AN AMENDMENT BY REP FRED GRANDY D IOWA THAT WOULD HAVE STRICKEN A PROVISION REQUIRING EMPLOYERS WHO CURRENTLY PAY PART OF THE COST OF EARLY RETIREES' HEALTH INSURANCE TO PAY 80 OF THE COST OF PROVIDING MEDICARE COVERAGE FOR THESE PEOPLE EARLYRETIREE HEALTH COSTS HAVE BECOME AN INCREASING BURDEN FOR A NUMBER OF LARGE MANUFACTURING COMPANIES INCLUDING THE BIG THREE AUTO MAKERS IN REP LEVIN'S HOME STATE MR CLINTON'S PLAN WOULD SOLVE THE PROBLEM BY HAVING THE GOVERNMENT TAKE OVER 80 OF ALL EARLYRETIREE HEALTH COSTS MR STARK SAID THE PRESIDENT'S PLAN IS TOO GENEROUS BUT HE SAID HE OPPOSED MR GRANDY'S AMENDMENT AS TOO PARSIMONIOUS THE AMENDMENT WAS VOTED DOWN 65 PARTY LINES SOMETIMES BLURRED WHEN IT CAME TO MORE TECHNICAL PROVISIONS INVOLVING THE EMPLOYER MANDATE THREE REPUBLICANS JOINED FOUR DEMOCRATS FOR EXAMPLE IN SUPPORTING AN AMENDMENT BY MR CARDIN DESIGNED TO ASSURE THAT EMPLOYERS GIVE THEIR WORKERS CHOICE IN HEALTH PLANS AS DRAFTED THE BILL WOULD REQUIRE EMPLOYERS TO PAY 80 OF WHATEVER PLAN A WORKER CHOOSES MR CARDIN ARGUED THAT WOULD HAVE ENCOURAGED EMPLOYERS TO OFFER ONLY THE CHEAPEST PLANS TO AVOID HAVING TO SHELL OUT MORE MONEY HIS AMENDMENT WOULD REQUIRE EMPLOYERS TO PAY ONLY FOR 80 OF THE COST OF THE LOWESTPRICED PLAN MEETING CERTAIN CRITERIA IN THEIR REGIONS THAT PRESUMABLY WOULD FREE EMPLOYERS TO OFFER WORKERS MORE COSTLY PLANS BECAUSE THEY WOULDN'T HAVE TO INCUR ADDITIONAL COSTS THEMSELVES IN DOING SO AT ANOTHER JUNCTURE REP JOHNSON A PROPONENT OF MARKETORIENTED HEALTHCARE REFORMS SUPPORTED AN AMENDMENT BY REP JIM MCDERMOTT D WASH THE CHIEF SPONSOR OF A SINGLEPAYER GOVERNMENTRUN OPTION MR MCDERMOTT WANTED TO EXPAND THE PROPOSED MEDICARELIKE COVERAGE TO BE AVAILABLE NOT ONLY TO SMALL EMPLOYERS BUT TO LARGE COMPANIES AS WELL IF YOU WOULD HELP ME MARKETIZE MEDICARE I'LL HELP YOU MEDICARE THE MARKET SHE TOLD MR MCDERMOTT SHE LATER WAS THE ONLY REPUBLICAN TO SUPPORT HIS MOTION BUT IT NONETHELESS FAILED ON A 55 TIE VOTE 9403160077 940316 INTERNATIONAL BRIEF ABB ASEA BROWN BOVERI LTD PACT WITH RUSSIAN CONCERN ON ELECTRIC METERS IS SIGNED ABB ASEA BROWN BOVERI LTD THE SWISSSWEDISH HEAVY ENGINEERING GROUP SIGNED AN AGREEMENT WITH THE ALLRUSSIA ELECTROTECHNICAL INSTITUTE TO FORM A JOINT VENTURE IN RUSSIA TO PRODUCE ELECTRICITY KILOWATTHOUR METERS THE NEW JOINTVENTURE COMPANY CALLED ABB VEI METRONICA IS 80OWNED BY ABB AND 20OWNED BY VEI A SPOKESMAN FOR ABB DECLINED TO DISCLOSE THE AMOUNT OF THE COMPANY'S INVESTMENT IN THE JOINT VENTURE BUT SAID THAT IT'S A FAIRLY SMALL ACQUISITION IN A NEW AREA WHICH WE FEEL WILL BE VERY BENEFICIAL ABB VEI BASED IN MOSCOW WILL PRODUCE THE LATEST DESIGNS OF SOLID STATE ALLELECTRONIC MICROPROCESSORBASED ABB 'ALPHA' METERS FOR THE MEASUREMENT OF ELECTRICITY CONSUMPTION AND FOR TARIFF COLLECTION ABB SAID IN A STATEMENT 9403160076 940316 MICHIGAN SALES TAX PLAN LEADING IN EARLY RETURNS DETROIT AP A BALLOT PROPOSAL TO RAISE MICHIGAN'S SALES TAX TO GENERATE 102 BILLION FOR THE STATE'S PUBLIC SCHOOLS WAS LEADING IN EARLY RETURNS LAST NIGHT THE PROPOSAL WAS THE ONLY MEASURE ON THE SPECIAL STATEWIDE BALLOT IF VOTERS REJECTED IT A LAW PASSED BY THE LEGISLATURE REQUIRED THE STATE INCOME TAX TO BE RAISED FROM TO 6 FROM 46 WITH 10 OF THE PRECINCTS REPORTING 172184 PEOPLE OR 72 HAD VOTED IN FAVOR OF THE PROPOSAL AND 67849 PEOPLE OR 28 AGAINST IT THE ELECTION MARKED THE END OF A SAGA THAT BEGAN LAST JULY WHEN LAWMAKERS AND GOV JOHN ENGLER ENDED THE USE OF PROPERTY TAXES FOR SCHOOL OPERATIONS WITHOUT HAVING ANY REPLACEMENT MONEY IN SIGHT THAT WIPED OUT ABOUT 7 BILLION OR 67 OF THE MONEY THAT HAD BEEN USED FOR EDUCATING MICHIGAN'S 16 MILLION SCHOOLCHILDREN THE SALES TAX INCREASE WAS BACKED BY MR ENGLER A REPUBLICAN WHO CAMPAIGNED ON A PROMISE TO CUT PROPERTY TAXES 9403160075 940316 TEXAS JOURNAL LETTERS TO THE EDITOR BACK TO THE CITY WHILE THERE MIGHT BE A CEASEFIRE AMONG MAJOR GROCERYSTORE CHAINS IN TEXAS ALL QUIET ON THE SUPERMARKET WAR FRONT FEB 16 ONE GROCER HAS CLEARLY WON A BATTLE IN DALLAS/FORT WORTH BY CAPITALIZING ON AN UNTAPPED LUCRATIVE RESIDENTIAL AREA I AM REFERRING TO ALBERTSON'S INC'S DECISION TO OPEN A 50000SQUAREFOOT STORE IN THE INNERCITY UPTOWN AREA NEAR DOWNTOWN DALLAS WHERE COLUMBUS REALTY TRUST IS A MULTIFAMILY RESIDENTIAL DEVELOPER THE SUCCESS OF THIS STORE SHOULD CAUSE COMPETITORS TO RETHINK THEIR SUBURBANONLY EXPANSION PLANS IN DALLAS AS WELL AS IN OTHER CITIES ACROSS TEXAS ALBERTSON'S UPTOWN STORE SERVES A DENSELY POPULATED TWOMILE TRADE AREA OF MORE THAN 80000 RESIDENTS IN THE TWO MONTHS SINCE THE STORE OPENED IT HAS REAFFIRMED THE VIABILITY OF UPTOWN AND OTHER INNERCITY GROWTH OPPORTUNITIES TO DALLAS CITY OFFICIALS DEVELOPERS AND LEADERS 9403160074 940316 LETTERS TO THE EDITOR ISRAELI WALLS' WILL LEAD TO REPRISALS AND WAR DAVID BROOKS'S FEB 28 EDITORIALPAGE PIECE FORGET MIDEAST PEACE AIM FOR DIVORCE OVERLOOKS THE FACT THAT HIS RECOMMENDATION HAS ALREADY BEEN TRIED AND HAS FAILED FROM 19491967 ISRAELIS AND PALESTINIAN ARABS WERE SHUT OFF BY THE WALLS HE RECOMMENDS IN JERUSALEM LITERALLY BY WALLS DIVIDING THE CITY IN TWO IN THE SOUTH BY BARBEDWIRE FENCES BUT ARAB TERRORISTS PENETRATED THE WALLS AND THE FENCES ISRAELI FORCES INEVITABLY RETALIATED THE ALTERNATIVE WAS TO PERMIT OPEN SEASON FOR MURDER OF ISRAELI CITIZENS AND THE WALLS AND FENCES DID NOTHING TO PREVENT TWO WARS IN 1956 AND 1967 THE ISRAELI GOVERNMENT THE SILLY RHETORIC FROM SOME QUARTERS ABOUT MIDDLE EAST COMMON MARKETS NOTWITHSTANDING IS IN FACT SETTING OUT TO IMPLEMENT THE TWICEFAILED POLICY MR BROOKS RECOMMENDS A FEW WEEKS AGO I WAS IN SOUTHERN ISRAEL AND LEARNED THAT THE GOVERNMENT HAS ORDERED THE SETTLEMENTS ALONG THE OLD GREEN LINE TO INSTALL FENCES ON THEIR BORDERS IN EXPECTATION OF THE WITHDRAWAL OF ISRAELI FORCES FROM GAZA WHAT THE EVENTS FOLLOWING THE HANDSHAKE ON THE WHITE HOUSE LAWN ILLUSTRATE IS NOT THE NEED FOR WALLS AND FENCES BEHIND WHICH ISRAEL SHOULD HIDE BUT THE FAILURE OF THE GOVERNMENT'S PEACE POLICY DR BARUCH GOLDSTEIN'S SHOOTING RAMPAGE FOLLOWED A LONG SERIES OF MURDERS BY ARABS WITHIN ISRAEL'S 1949 BORDERS AS WELL AS IN THE POST 1967 SETTLEMENTS FUELED BY THE PERCEPTION THAT ISRAEL WAS ON THE RUN AND ITS CITIZENS EASY TARGETS THE POLICY MR BROOKS RECOMMENDS AND THE ISRAELI GOVERNMENT SEEKS TO IMPLEMENT CAN ONLY LEAD AS IT HAS BEFORE TO TERROR REPRISAL AND WAR THIS TIME ISRAEL MAY BE ANNIHILATED OR BESTCASE SCENARIO IT MAY RECONQUER AT TERRIBLE COST THE TERRITORIES IT NOW FOOLISHLY ABANDONS 9403160073 940316 INTERNATIONAL BRIEF BAYER AG GROUP PROFIT FELL 12 IN '93 WHILE SALES SLIPPED SLIGHTLY GERMAN CHEMICALS GROUP BAYER AG REPORTED A 12 DECLINE IN GROUP PROFIT LAST YEAR ON HIGHER RESEARCHANDDEVELOPMENT AND CAPITAL SPENDING BUT SAID IT WOULD HOLD ITS DIVIDEND FOR 1993 UNCHANGED GROUP PROFIT FELL TO 137 BILLION MARKS 8108 MILLION FROM 156 BILLION MARKS WHILE GROUP SALES EDGED DOWN 05 TO 41 BILLION MARKS FROM 412 BILLION MARKS THE COMPANY ALSO SAID IT WOULD ASK SHAREHOLDERS TO APPROVE THE ABOLITION OF ITS 5 VOTINGRIGHTS LIMITATION IN EFFECT SINCE 1975 THE LEVERKUSENBASED COMPANY SAID ITS GROUP PRETAX PROFIT FELL 13 TO 235 BILLION MARKS LAST YEAR THAT'S CONSIDERABLY BETTER THAN THE 20 DROP IN FULLYEAR GROUP PRETAX EARNINGS PROJECTED BY BAYER CHAIRMAN MANFRED SCHNEIDER IN NOVEMBER CAPITAL EXPENDITURES LAST YEAR CAME TO 316 BILLION MARKS UP 10 FROM 1992 BAYER SAID RESEARCH AND DEVELOPMENT EXPENSES ROSE 19 TO 316 BILLION MARKS IN 1993 9403160072 940316 TECHNOLOGY BRIEF SOFTECH INC THIRDPERIOD PROFIT ROSE ON CONTINUING OPERATIONS SOFTECH INC WALTHAM MASS REPORTING THE FIRST QUARTER AFTER SHEDDING ITS DEFENSE BUSINESS WILL POST SHARPLY HIGHER PROFIT FROM CONTINUING OPERATIONS FOR THE FISCAL THIRD QUARTER ENDED FEB 28 REVENUE FROM CONTINUING OPERATIONS ROSE 66 NORMAN RASMUSSEN CHIEF EXECUTIVE AND PRESIDENT SAID IN AN INTERVIEW SOFTECH ALSO WILL TAKE A ONETIME GAIN OF 1 MILLION IN THE THIRD QUARTER FROM THE SALE OF THE DEFENSESOFTWARE BUSINESS LAST DECEMBER MR RASMUSSEN SAID BEFORE THE GAIN PROFIT FROM CONTINUING OPERATIONS WAS 349000 OR NINE CENTS A SHARE ON REVENUE OF 62 MILLION HE SAID IN THE YEAREARLIER QUARTER INCOME RESTATED TO ACCOUNT FOR THE EXIT FROM THE DEFENSE BUSINESS WAS 25000 OR ONE CENT A SHARE ON REVENUE OF 37 MILLION NET INCOME AFTER THE ONETIME GAIN WAS 137 MILLION OR 36 CENTS A SHARE HE SAID WITH THE EXIT FROM DEFENSE SOFTECH IS REBUILDING ITSELF AS A NETWORKING SOFTWARESERVICES AND SYSTEMSINTEGRATION BUSINESS MR RASMUSSEN SAID SOFTECH IS LOOKING FOR ACQUISITIONS OF REGIONAL COMPUTER DISTRIBUTORS AND SERVICE FIRMS TO ACCOMPLISH THIS HE SAID 9403160071 940316 BUSINESS BRIEF VICORP RESTAURANTS INC FISCAL 1STQUARTER NET FELL 33 ON SLIGHT REVENUE RISE VICORP RESTAURANTS INC SAID NET INCOME FOR ITS FIRST QUARTER ENDED FEB 20 DROPPED 33 TO 36 MILLION OR 36 CENTS A SHARE FROM 54 MILLION OR 52 CENTS A SHARE A YEAR EARLIER DESPITE OPENING 11 NEW RESTAURANTS THE DENVERBASED COMPANY SAID REVENUE ROSE TO 1307 MILLION FROM 1304 MILLION A YEAR AGO THE COMPANY SAID SALES WERE HURT BY SEVERE WEATHER IN THE MIDWEST AND THE EFFECTS OF THE EARTHQUAKE AND WINTER RAINS IN CALIFORNIA INDUSTRY ANALYSTS SAID THAT WHILE WEATHER WAS A PROBLEM THE COMPANY'S BAKERS SQUARE DIVISION HAS BEEN POUNDED BY MORE AGGRESSIVE COMPETITORS IN THE FAMILYDINING SEGMENT CHARLES R FREDERICKSON CHAIRMAN SAID THAT OPERATING MARGINS FELL ALMOST THREE PERCENTAGE POINTS OR ABOUT 36 MILLION IN COMPARISON WITH LAST YEAR'S FIRSTQUARTER RESULTS 9403160070 940316 SMALL STOCK FOCUS INVESTORS BID STOCKS TO MARGINAL GAINS DESPITE CONCERNS ABOUT INTEREST RATES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS BID SMALLCOMPANY STOCKS TO MARGINAL GAINS DESPITE CONTINUING CONCERNS ABOUT THE DIRECTION OF INTEREST RATES TRADERS SAID A CAUTIONARY APPROACH BEFORE TODAY'S RELEASE OF FEBRUARY CONSUMER PRICES AND FRIDAY'S TRIPLE WITCHING SESSION IN WHICH STOCK FUTURES AND OPTIONS EXPIRE PLAYED A ROLE IN LIMITING STOCKPRICE ADVANCES YESTERDAY THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION ISSUES ADDED 067 POINT OR 025 TO END AT 26686 ITS HIGH FOR THE DAY WAS 26708 NASDAQ STOCKS SURGED HIGHER ON SOME MILD STRENGTH AMONG TECHNOLOGY LEADERS THE NASDAQ COMPOSITE INDEX GAINED 072 POINT OR 009 TO 79352 ALTHOUGH IT HAD RISEN NEARLY 3 POINTS EARLY YESTERDAY AMONG BIG TECHNOLOGY STOCKS INTEL CORP MICROSOFT CORP AND APPLIED MATERIALS INC ALL GAINED AT LEAST A POINT GAINERS OUTPERFORMED NASDAQ LOSERS 1608 TO 1464 TRADERS SAID RECENT JITTERS OVER INTEREST RATES AND INFLATION CONTINUED TO DEFLATE VOLUME ACCORDING TO LARRY KINNEY HEAD OF OVERTHECOUNTER TRADING AT SOUNDVIEW FINANCIAL CORP ALTHOUGH SOME PROFITTAKING KICKED IN DURING THE LATE AFTERNOON OPTIMISM OVER FIRSTQUARTER EARNINGS IS HELPING TO ATTRACT BUYERS ENCOURAGING INFLATION DATA YESTERDAY HELPED SOOTHE THE BOND MARKET THE GOVERNMENT SAID ITS FEBRUARY PRODUCER PRICE INDEX INCREASED BY 05 BUT THE CORE RATE OF WHOLESALE INFLATION WHICH EXCLUDES THE FOOD AND ENERGY SECTORS ROSE BY ONLY 01 BUT WHILE SMALLER ISSUES TOOK SOME COMFORT FROM SOLID GOVERNMENT SECURITIES LARGE CYCLICAL ISSUES HESITATED IN FRONT OF TODAY'S KEY INFLATION REPORT THE DOW JONES INDUSTRIAL AVERAGE FELL MORE THAN 13 POINTS ANALYSTS EXPECT THE INFLATION DATA TO BE BENIGN WHICH IS GOOD FOR THE MARKET AS A WHOLE BUT WHICH COULD OFFER PARTICULAR OPPORTUNITIES TO SMALLER STOCKS A MODERATEGROWTH ECONOMY WITH LITTLE INFLATION AND LOW RATES IS VERY GOOD FOR THIS GROUP OF STOCKS SAID SANDRA SHREWSBURY MANAGER OF THE PIPER JAFFRAY EMERGING GROWTH FUND MS SHREWSBURY CITES THE NICHES SMALL COMPANIES OCCUPY AND THEIR NIMBLENESS ALTHOUGH SHE SEES CONTINUED VOLATILITY IN THE GROUP THE STOCKS OFFER GREAT BENEFITS OVER THE LONG TERM SMALLER ISSUES AS MEASURED BY THE RUSSELL 2000 HAD A BETTER YEAR IN 1993 THAN DID THE COMPONENTS OF THE DOW INDUSTRIALS SHARES OF BIOGEN FELL 3 OR 7 TO 38 1/2 A TOTAL OF 19 MILLION SHARES IN THE CAMBRIDGE MASS BIOTECHNOLOGY COMPANY CHANGED HANDS AGAINST AVERAGE DAILY TURNOVER OF 707000 A SPOKESWOMAN SAID THERE IS NO CORPORATE NEWS TO EXPLAIN YESTERDAY'S WEAKNESS IN THE COMPANY'S SHARES BUT THE ACTIVITY MAY BE LINKED TO A RECENT SCIENTIFIC PRESENTATION AS REPORTED THE COMPANY PRESENTED DATA MONDAY ON ITS LEAD PRODUCT HIRULOG AT AN AMERICAN COLLEGE OF CARDIOLOGY MEETING IN ATLANTA WHEN THE DATA FIRST BECAME AVAILABLE VIA A SCIENTIFIC ABSTRACT AT THE BEGINNING OF THE MONTH SEVERAL BIOTECHNOLOGY ANALYSTS EXPRESSED DISAPPOINTMENT WITH THE LACK OF CONCLUSIVENESS ANALYSTS FAULTED THE STUDY FOR FAILING TO DEMONSTRATE THE CARDIOVASCULAR DRUG'S USEFULNESS IN PREVENTING DEATH NONFATAL HEART ATTACK AND RAPID CLINICAL DETERIORATION NO ANALYSTS WERE IMMEDIATELY AVAILABLE TO DISCUSS THE DATA AMONG MOVERS YESTERDAY NEW ISSUE NN BALL & ROLLER ERWIN TEXAS ROSE TO 16 ABOVE ITS OFFERING PRICE LATE MONDAY OF 14 A SHARE THE MAKER OF PRECISION STEEL BALLS AND ROLLERS SAID PROCEEDS WILL BE USED TO REPAY DEBT FUND A DIVIDEND OF UNDISTRIBUTED EARNINGS TO CURRENT STOCKHOLDERS AND FUND GENERAL CORPORATE PURPOSES TSX AN EL PASO TEXAS DISTRIBUTOR OF ELECTRONICS SURGED 1 3/4 TO 7 3/4 ON THE AMERICAN STOCK EXCHANGE AFTER THE CLOSE MONDAY THE COMPANY SAID TELECOMMUNICATIONS HAS ACQUIRED 2109000 NEWLY ISSUED TSX SHARES REPRESENTING A 49 STAKE SAYETT GROUP IMPROVED 1 TO 6 THE PITTSFORD NY CONCERN SAID IT HAS FORMED A NEW VENTURE WITH ISI HOLDING TO MAKE AND SELL WEARABLE COMPUTERS WITH A HEADMOUNTED MINIATURE DISPLAY FOR VARIOUS COMMERCIAL AND DEPARTMENT OF DEFENSE OPERATIONS GOOD EARNINGS PUSHED NATURAL WONDERS UNION CITY CALIF UP 2 3/8 TO 8 3/8 THE OPERATOR OF RETAIL STORES SAID ITS FOURTHQUARTER NET INCOME WAS 106 IN THE LATEST PERIOD UP FROM 80 CENTS A YEAR EARLIER THE LATEST EARNINGS SURPASSED WALL STREET'S EXPECTATIONS BY TWO CENTS A SHARE GENTEX BOUNCED 1 3/4 HIGHER TO 25 1/4 THE ZEELAND MICH MAKER OF PRODUCTS THAT USE ELECTROOPTICAL TECHNOLOGY SAID ITS FIRSTQUARTER EARNINGS AND REVENUE ARE ON TRACK TO MEET OR POSSIBLY EXCEED THE CONSENSUS OF ANALYST ESTIMATES WHICH IS 20 CENTS A SHARE IN OTHER EARNINGS NEWS BOOKSAMILLION CHALKED UP 2 1/2 TO 21 1/4 THE BIRMINGHAM ALA OPERATOR OF BOOK AND GREETINGCARD STORES SAID ITS FOURTHQUARTER EARNINGS ROSE TO 46 CENTS A SHARE ON MORE SHARES FROM 37 CENTS A YEAR EARLIER STANDARD COMMERCIAL JUMPED 1 1/2 TO 17 5/8 ON THE NEW YORK STOCK EXCHANGE THE WILSON NC TOBACCO AND WOOL PROCESSOR BENEFITED FROM A PRUDENTIAL SECURITIES INC UPGRADE TO BUY FROM HOLD BIG BOARDTRADED GRANCARE JUMPED 1 7/8 TO 21 KIDDER PEABODY & CO ANALYST JOEL RAY RAISED HIS RATING ON THE CULVER CITY CALIF OPERATOR OF HEALTHCARE FACILITIES TO STRONG BUY FROM ATTRACTIVE LONG TERM ON THE LOSING SIDE CMC INDUSTRIES TUMBLED 3 5/8 TO 6 1/8 AFTER THE CLOSE MONDAY THE MEMPHIS TENN TELECOMMUNICATIONS CONCERN SAID IT EXPECTS THIRDQUARTER AND FOURTHQUARTER OPERATING EARNINGS TO FALL BELOW ANALYSTS' FORECASTS SAYING IT HAD BEEN ADVISED BY A MAJOR CUSTOMER OF A PRODUCTION RESCHEDULE OF ONE OF ITS PRODUCTS CMC INDUSTRIES WENT PUBLIC IN DECEMBER AT 9 A SHARE REGENERON PHARMACEUTICALS BASED IN TARRYTOWN NY TUMBLED 4 3/8 TO 8 3/4 THE COMPANY SAID IT PLANS TO MODIFY AND EXTEND ITS MULTICENTER PHASE III CLINICAL STUDY OF THE SAFETY AND EFFICACY OF CILIARY NEUROTROPHIC FACTOR OR CNTF TO TREAT LOU GEHRIG'S DISEASE CATO DECLINED 1 7/8 TO 17 5/8 THE CHARLOTTE NC OPERATOR OF WOMEN'S APPAREL SPECIALTY STORES SAID ITS FOURTHQUARTER NET INCOME FELL TO 17 CENTS A SHARE FROM 19 CENTS IN THE YEARAGO PERIOD 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 9403160069 940316 LETTERS TO THE EDITOR SHAREHOLDERS KILLED TCIBELL MERGER IN YOUR MARCH 3 EDITORIAL CLINTON'S FRENCH BUREAUCRATS YOU STATE THAT THE CLINTONITES LIKE MARKETS BUT IN ABOUT THE SAME WAY THAT FRENCH BUREAUCRATS HAVE ALWAYS LIKED THE MARKETS IN A STRONG EMBRACE YOU GO ON TO BLAME THE COLLAPSE OF THE TCIBELL ATLANTIC MERGER ON THE FCC'S 7 REDUCTION IN CABLE RATES GOVERNMENT REGULATION IS OFTEN HARMFUL TO BUSINESS BUT YOUR CONTENTION THAT THE MARKETS ARE SOMEHOW REPRESENTED IN THIS CASE BY THE MANAGERS OF TCI AND BELL ATLANTIC IS IN MY VIEW INCORRECT IN FACT MARKETS ARE REPRESENTED BY SHAREHOLDERS NOT BY MANAGERS OR DIRECTORS AND IN THIS CASE IT IS CLEAR THAT SHAREHOLDERS AND THE MARKETS BY DEPRESSING THE STOCK PRICES OF BOTH FIRMS VOTED AGAINST THE MEGAMERGER IN QUESTION YOU FAIL TO RECOGNIZE THE SIGNIFICANCE OF THIS FREEMARKET SIGNAL WHEN YOU FURTHER ADD THAT RAY SMITH AND JOHN MALONE WOULD HAVE FOUND A WAY TO COMPLETE THE MERGER DESPITE DECLINES IN THEIR COMPANIES' SHARE PRICES WHY SHOULD THEY THE OWNERS OF THEIR COMPANIES DO NOT SEEM TO WANT IT IF THEY SUCCEED DESPITE DECLINES IN THEIR COMPANIES' SHARE PRICES ARE THEY NOT FLOUTING THE SAME FREE MARKET YOUR EDITORIAL SOUGHT TO DEFEND 9403160068 940316 LEISURE & ARTS BOOKSHELF THE MOTHER OF ALL GIRL REPORTERS BY AMY GAMERMAN SHE HAD HERSELF COMMITTED TO A VICTORIAN INSANE ASYLUM SHE CIRCLED THE GLOBE IN 72 DAYS AND SET A NEW RECORD SHE PUT ON TIGHTS AND JOINED A CHORUS LINE SHE PUT ON BOXING GLOVES AND KNOCKED DOWN A CHAMPION PRIZEFIGHTER SHE RODE AN ELEPHANT SHE INSPIRED SONGS A BOARD GAME AND A MINOR FASHION IN CAPS SHE WAS NELLIE BLY GIRL REPORTER NEWSPAPER READERS IN THE LATE 19TH CENTURY KNEW HER AS THE PERSONIFICATION OF PLUCK PICTURE GEORGE PLIMPTON IN A BUSTLE AND YOU HAVE AN IDEA OF THE HEROINE OF BROOKE KROEGER'S NELLIE BLY DAREDEVIL REPORTER FEMINIST TIMES BOOKS 631 PAGES 2750 BLY WAS BORN ELIZABETH JANE COCHRAN IN 1864 THE 13TH CHILD OF A WEALTHY PENNSYLVANIA JUDGE ON HIS DEATH THE FAMILY LOST MOST OF ITS MONEY AFTER ONE SEMESTER IN TEACHER'S COLLEGE BLY WAS FORCED TO QUIT IN 1885 SHE WAS BACK HOME TRYING TO FIGURE OUT WHAT TO DO WITH HER LIFE WHEN SHE READ A COLUMN IN THE PITTSBURG SIC DISPATCH LECTURING WOMEN NOT TO STRAY FROM THE WOMAN'S SPHERE THE HOME IRKED BLY WROTE AN IMPASSIONED LETTER TO THE EDITOR ABOUT THE PLIGHT OF POOR GIRLS LIKE HERSELF WHO NEEDED A GOOD JOB BUT COULDN'T FIND ONE AND SIGNED IT LONELY ORPHAN GIRL AN IMPRESSED EDITOR PLACED AN AD ASKING THE LONELY ORPHAN GIRL TO COME FORWARD BLY DID AND CAME AWAY WITH AN ASSIGNMENT HEADLINED THE GIRL PUZZLE IN NO TIME SHE HAD A JOB AT THE DISPATCH FOR 5 A WEEK SINCE IT WAS UNTHINKABLE FOR A LADY TO WRITE UNDER HER OWN NAME THE BOYS AT THE PAPER GAVE HER ONE NELLIE BLY JUST FOUR YEARS LATER THAT BYLINE WOULD BE ONE OF THE MOST FAMOUS IN AMERICA THANKS TO BLY'S LOVE OF RISK HER DISTASTE FOR REPORTING ON RUBBER RAINCOATS AND HAIRCARE AND EDITORS' EAGERNESS TO TRY NEW WAYS TO BOOST CIRCULATION AS ONE COLLEAGUE PUT IT A VOYAGE THROUGH THE MINETTA SEWER OR A FAKE BOMB ATTACK ON A BRITISH MANOFWAR NO LONGER STIRRED THE JADED SENSE BUT DONE BY A GIRL WITH A NAME LIKE NELLIE BLY WHEN BLY ARRIVED IN NEW YORK AT THE AGE OF 23 SHE HAD ALREADY PUT IN A FIVEMONTH STINT AS A FOREIGN CORRESPONDENT IN MEXICO HER MOTHER CAME AS HER CHAPERONE BUT SHE COULDN'T GET HER FOOT IN THE DOOR OF THE CITY'S TOP EDITORS THEN SHE CAME UP WITH THE IDEA OF INTERVIEWING THEM FOR THE DISPATCH THE SUBJECT HOW A WOMAN COULD GET A JOB AS A REPORTER THE EDITOR OF THE SUN TOLD BLY THAT WOMEN DIDN'T MAKE GOOD REPORTERS BECAUSE THEY WEREN'T ACCURATE HERE I GROANED MENTALLY FOR THE FATE OF THIS INTERVIEW BLY QUIPPED BLY HAD HER FLAWS AS A REPORTER HER STORIES THOUGH LIVELY WERE CORNY EVEN BY VICTORIAN STANDARDS BUT SHE MADE UP FOR IT IN MOXIE WHEN THE EDITOR OF JOSEPH PULITZER'S NEW YORK WORLD CHALLENGED HER TO REPORT ON THE CITY'S INFAMOUS WOMAN'S INSANE ASYLUM FROM THE INSIDE BLY DIDN'T MISS A BEAT SHE CHECKED INTO A BOARDING HOUSE UNDER A FAKE NAME BEGAN TO RAVE AND WAS HAULED OFF FIRST TO POLICE COURT THEN TO BELLEVUE AND FINALLY TO BLACKWELL'S ISLAND INSANE ASYLUM FOR WOMEN FOR 10 DAYS SHE ENDURED ICY BATHS CRUEL NURSES AND GENUINE CRAZY PEOPLE UNTIL A LAWYER RESCUED HER HER STORY WAS A SENSATION IN SUBSEQUENT ADVENTURES FOR THE WORLD THE LEADING PAPER OF ITS TIME BLY EXPOSED A CORRUPT ALBANY LOBBYIST ARRANGED HER OWN ARREST TO INVESTIGATE PRISON CONDITIONS AND ATTEMPTED TO BUY A NEWBORN BABY IN THE PROCESS SHE SPAWNED A SLEW OF QUAINTLY NAMED IMITATORS VIOLA ROSEBORO DRESSED HERSELF IN RAGS AND WENT BEGGING ON THE STREETS WHILE NELL NELSON WENT UNDERCOVER FOR A WHITE SLAVE GIRLS EXPOSE PUSHED TO EVERMORE DARING STUNTS BLY SET OFF AROUND THE WORLD IN A BID TO BEAT THE FICTIONAL RECORD SET BY JULES VERNE'S PHILEAS FOGG ALTHOUGH SHE ONLY SENT BACK A HANDFUL OF CABLES DURING HER 72DAY TRIP THE WORLD REPORTED HER PROGRESS WITH REGULAR BULLETINS COMPLETE WITH ILLUSTRATIONS OF THE GLOBEGIRDLER IN HER CHECKED TRAVEL COAT AND PEAKED CAP ON HER TRIUMPHANT RETURN BLY WAS GREETED BY THOUSANDS OF WELLWISHERS BUT NO BONUS SHE QUIT BLY WOULD WORK AS A JOURNALIST ON AND OFF UNTIL HER DEATH IN 1922 BUT IT WAS SOMETIMES HARD TO DISTINGUISH HER REAL LIFE ANTICS FROM HER REPORTORIAL STUNTS HER 1895 MARRIAGE TO A 70YEAROLD MILLIONAIRE PROMPTED THIS MOCK HEADLINE IS MARRIAGE A FAILURE NELLY BLY TRIES IT WITH A GOOD OLD MAN HER EXPERIENCES AND HIS A DIVORCE APPLIED FOR TO SET OUR CONTRIBUTOR FREE TAKING THE EARNEST IF PLODDING BIOBYTHENUMBERS APPROACH MS KROEGER TRACKS EVERY DIP AND RISE IN BLY'S LIFE AFTER 300 PAGES EVEN THIS GIRL REPORTER'S INTEREST BEGAN TO FLAG MS KROEGER'S FONDNESS FOR PHRASES LIKE SHACKLES OF GENDER AND CONGENITAL FEMINIST DOES NOT MAKE THE GOING SMOOTHER BLY WOULD PROBABLY HAVE A GOOD LAUGH OVER THE AUTHOR'S POLITICALLY CORRECT CONTORTIONS SHE FILLED HER COLUMNS WITH REFERENCES TO HER TINY WAIST HER WINNING SMILE AND THEIR EFFECT ON HER MALE SUBJECTS AN EXAMPLE OF HER TACTICS FROM AN INTERVIEW WITH A CONTROVERSIAL GOVERNOR FOLLOWS YOU CAN GET ANYTHING YOU ASK FOR WHEN YOU SMILE SAID THE SMITTEN GOV I'M SMILING NOW BLY REPLIED SO DO TELL ME ARE YOU AN ANARCHIST 9403160067 940316 BUSINESS BRIEF COMCAST CORP LOSS SHRANK IN 4TH PERIOD ON STRONG REVENUE GROWTH COMCAST CORP POSTED A NARROWER LOSS ON STRONG GROWTH IN REVENUE AND CASH FLOW FOR THE FOURTH QUARTER LARGELY BECAUSE OF GAINS IN THE NUMBER OF CELLULAR AND CABLETELEVISION SUBSCRIBERS THE CABLE AND CELLULAR OPERATOR REPORTED A LOSS OF 399 MILLION OR 18 CENTS A SHARE COMPARED WITH A LOSS OF 1409 MILLION OR 69 CENTS A SHARE A YEAR EARLIER THE RECENT QUARTER INCLUDED A ONETIME CHARGE OF 176 MILLION OR EIGHT CENTS A SHARE FOR EARLY REDEMPTION OF DEBT REVENUE JUMPED TO 3375 MILLION UP 29 FROM THE YEAR EARLIER CASH FLOW DEFINED AS OPERATING PROFIT BEFORE DEPRECIATION AND AMORTIZATION ROSE 28 TO 1462 MILLION CASH FLOW IS A PRIMARY INDICATOR OF A CABLE COMPANY'S HEALTH MEANWHILE THE COMPANY SAID THE VALUE OF ITS INVESTMENTS IN NEW AND EMERGING BUSINESS OPPORTUNITIES HAS GROWN CONSIDERABLY AND THE FUTURE OF THE WIRELESS COMMUNICATIONS BUSINESS IS ESPECIALLY PROMISING 9403160066 940316 FOREIGN EXCHANGE DOLLAR AIDED BY US ECONOMIC DATA GAINS ON MAJOR EUROPEAN CURRENCIES BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR WAS GIVEN A BOOST AGAINST MAJOR EUROPEAN CURRENCIES YESTERDAY ON A RUN OF STRONG US ECONOMIC DATA THAT SUGGESTED THE FEDERAL RESERVE MAY NEED TO INCREASE INTEREST RATES AGAIN TO HEAD OFF INFLATIONARY PRESSURE BUT THE DOLLAR'S EARLY RISE AGAINST THE YEN WAS REVERSED BY RENEWED FEARS THAT USJAPAN TRADE TENSIONS ARE FAR FROM OVER LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16965 MARKS UP FROM 16900 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 106 YEN DOWN FROM 10610 YEN STERLING WAS TRADING AT 14905 DOWN FROM 14960 ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10590 YEN AND AT 16965 MARKS US GOVERNMENT DATA AT MIDMORNING YESTERDAY SHOWED US FACTORIES WERE OPERATING AT A SEASONALLY ADJUSTED 834 OF CAPACITY IN FEBRUARY THE HIGHEST RATE SINCE JUNE 1989 THAT NUMBER SURPASSED MARKET EXPECTATIONS OF 83 AND WAS ABOVE JANUARY'S 831 LEVEL IN ADDITION FEBRUARY INDUSTRIAL PRODUCTION ROSE 04 ITS NINTH STRAIGHT MONTHLY RISE AND IN CONTRAST WITH MARKET FORECASTS OF NO CHANGE FROM JANUARY ALL THIS IS STRONGERTHANEXPECTED ECONOMIC DATA THAT POINTS TOWARD INFLATIONARY PRESSURES SAID JOSEPH FRANCOMANO A TRADER AT DAIICHI KANGYO BANK IN NEW YORK THE FACTORY ORDER AND INDUSTRIAL PRODUCTION DATA OVERSHADOWED EARLIER NEWS OF A SEASONALLY ADJUSTED 05 RISE IN THE US PRODUCER PRICE INDEX OR PPI FOR FEBRUARY THE RISE WAS SLIGHTLY ABOVE MARKET FORECASTS FOR A 04 RISE AND CHIEFLY DUE TO A SURGE IN ENERGY PRICES THERE WAS NOTHING IN THE PPIS TO MAKE THE FED TIGHTEN FASTER SAID DAVE GLOWACKI SENIOR TRADER AT THE NATIONAL BANK OF DETROIT YET ON BALANCE THE DAY'S DATA LED TO RENEWED ATTENTION ON A POSSIBLE RATE INCREASE BY THE FED POSSIBLY TIMED TO THE FEDERAL OPEN MARKET COMMITTEE MEETING NEXT TUESDAY WITH THE MARKET EXPECTING A FURTHER ALBEIT TOKEN EASING BY GERMANY'S CENTRAL BANK OF SECURITIESREPURCHASE RATES TODAY THE DOLLAR WENT ON TO AN INTRADAY HIGH OF 17025 MARKS THE BUNDESBANK IS EXPECTED TO REDUCE ITS KEY REPO RATE ANYWHERE FROM FOUR TO 14 BASIS POINTS TO BETWEEN 580 AND 590 DAIICHI KANGYO BANK'S MR FRANCOMANO SAID THE REPO RATE IS THE BUNDESBANK'S PREFERRED TOOL FOR FINETUNING THE ECONOMY IF REPO RATES REMAIN ABOVE 590 THE MARKET WILL BE VERY DISAPPOINTED MR FRANCOMANO SAID ADDING THAT SUCH A DECISION WOULD PROBABLY PROMPT ANOTHER DOLLAR SELLOFF MEANWHILE OPTIMISM OVER A POSSIBLE EASING OF USJAPAN TRADE TENSIONS THAT FOLLOWED THE WEEKEND'S AGREEMENT TO ALLOW MOTOROLA INC GREATER ACCESS TO JAPAN'S CELLULARPHONE MARKET WAS DASHED BY US OFFICIAL COMMENTS CRITICIZING JAPAN'S TRADE SURPLUS AHEAD OF THE COMMENTS THE DOLLAR HIT 10667 YEN ITS HIGHEST LEVEL SINCE THE PLUNGE THAT FOLLOWED THE FEB 11 COLLAPSE OF USJAPAN BILATERAL TRADE TALKS BUT IT THEN GAVE AWAY ITS STEADY GAINS ON US TRADE REPRESENTATIVE MICKEY KANTOR'S CONGRESSIONAL TESTIMONY THAT HE REMAINS DEEPLY CONCERNED ABOUT JAPAN'S TRADE IMBALANCE 9403160065 940316 BUSINESS BRIEF ROBERDS INC HOLDERS FILE 3 SUITS RELATED TO 1993 FINANCIAL RESULTS ROBERDS INC SAID THREE SHAREHOLDER LAWSUITS HAVE BEEN FILED AGAINST THE COMPANY REGARDING ITS BELOWEXPECTED FINANCIAL RESULTS FOR THE 1993 YEAR THE SUITS FILED IN FEDERAL COURT IN DAYTON OHIO ALLEGE THAT INVESTORS WERE MISINFORMED AS TO THE COMPANY'S PROSPECTS AND ASK THE COURT TO CERTIFY A CLASSACTION SUIT CONSISTING OF INVESTORS WHO BOUGHT SHARES FROM THE INITIAL PUBLIC OFFERING NOV 16 1993 THROUGH FEB 28 1994 IN A STATEMENT THE FURNITURE AND APPLIANCE RETAILER SAID IT DISAGREED WITH THE ALLEGATIONS AND INTENDS TO DEFEND THE SUITS VIGOROUSLY ROBERDS REPORTED PRO FORMA NET INCOME OF 79 MILLION OR 76 CENTS A SHARE FOR 1993 ON SALES OF 217 MILLION SOME ANALYSTS HAD ESTIMATED EARNINGS AS HIGH AS 1 A SHARE THE SUIT ALSO NAMES AS DEFENDANTS KIDDER PEABODY & CO AND RAYMOND JAMES & ASSOCIATES INC WHO ACTED AS MANAGERS OF THE INITIAL PUBLIC OFFERING KIDDER PEABODY DECLINED COMMENT WHILE RAYMOND JAMES & ASSOCIATES OFFICIALS COULD NOT BE REACHED 9403160064 940309 TEXAS JOURNAL ECONOMIC FOCUS IT'S PARTY TIME TOURISTS POUR INTO SOUTH PADRE BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL SOUTH PADRE ISLAND WET TSHIRT CONTESTS ACRES OF SCANTILY CLAD SUNBATHERS DRINKING AND CAROUSING AND BUNGEEJUMPING UNTIL DAWN SPRING BREAK THAT LIBIDINOUS RITE THAT DELIVERS ROUGHLY 15 OF THIS SOUTH TEXAS RESORT'S ANNUAL REVENUES IN JUST ONE MONTH IS NEARING ITS CLIMAX AND THIS LOOKS TO BE THE BIGGEST TURNOUT IN YEARS LOCAL OFFICIALS PREDICT 125000 COLLEGE STUDENTS WILL MAKE THEIR WAY TO THE BEACH BY THE END OF MARCH A WHOPPING 25 JUMP OVER LAST YEAR BUT NEVER MIND ALL THAT WHAT REALLY HAS SOUTH PADRE'S TOURISM OPERATORS EXCITED IS THE ABNORMALLY LARGE NUMBER OF OLDER VISITORS MEXICAN NATIONALS AND TEXAS FAMILIES WHO HAVE BEEN FLOCKING HERE RECENTLY NOT ONLY HAVE THEY DRIVEN UP HOTEL OCCUPANCY RATES DURING MONTHS THAT ARE TYPICALLY ALL BUT DEAD BUT THEY'RE FUELING THE BEST REALESTATE MARKET SINCE THE EARLY '80S IT'S JUST BEEN UNBELIEVABLE SAYS TROY GILES A REALESTATE BROKER AND CITY ALDERMAN WHO WATCHED A PRIME BEACHFRONT LOT CHANGE HANDS FOR 280000 LAST YEAR AFTER SELLING FOR 106000 IN 1991 AS LONG AS WE DON'T HAVE A STORM OR SOMETHING AFFECT US IN JUNE JULY AND AUGUST WE'RE GOING TO HAVE A TREMENDOUS INCREASE IN TOURISTS ADDS HAROLD WHEELER DIRECTOR OF THE SOUTH PADRE ISLAND CONVENTION AND VISITORS BUREAU IN THE FIRST QUARTER OF FISCAL 1994 ENDED DEC 31 HOTEL OCCUPANCYTAX RECEIPTS ROSE 13 ON TOP OF A 6 JUMP A YEAR EARLIER AND JANUARY AND FEBRUARY WERE IF ANYTHING EVEN STRONGER PEOPLE IN THE INDUSTRY SAY WE'RE UP BIG TIME SAYS PAUL Y CUNNINGHAM WHO IS NOT ONLY THE CITY ATTORNEY BUT ALSO THE COOWNER OF THE RADISSON RESORT HERE HE NOTES THAT RADISSON'S JANUARY OCCUPANCY ROSE TO 52 FROM A LITTLE MORE THAN 20 IN JANUARY 1993 THE LATEST ROUND OF PROSPERITY HAS BEEN A LONG TIME COMING BUSINESS CAME TO A HALT IN 1982 AS PLUNGING OIL PRICES AND A MASSIVE PESO DEVALUATION DECIMATED HIGH ROLLERS FROM MEXICO AND TEXAS AT THE SAME TIME SEVERAL MAJOR HOTELS WENT UNDER AND CONDOMINIUM PROJECTS WITHERED BUT THANKS TO SOME SAVVY MARKETING AS WELL AS AN IMPROVING REGIONAL ECONOMY SOUTH PADRE HAS BEEN ON THE MEND FOR THE PAST THREE YEARS LOCALS SAY AND RECENTLY A NUMBER OF FACTORS HAVE ACCELERATED THE TREND FOR ONE THING THIS HAS BEEN A BIG SEASON FOR WINTER TEXANS TYPICALLY RETIREES FROM THE MIDWEST WHO SPEND THE COLD MONTHS IN THE RIO GRANDE VALLEY THOUGH THEY TEND TO LIVE IN TRAILER PARKS SOME DISTANCE FROM HERE DAY VISITS AND OVERNIGHT STAYS HAVE BOOSTED REVENUES THE CITY IS ALSO STARTING TO BOOK MORE EVENTS IN ITS NEW CONVENTION CENTER FOCUSING ON CREATING DRAWS DURING THE OFFSEASON WHICH INCLUDES EVERY MONTH EXCEPT MARCH JUNE JULY AND AUGUST ONE BIG HIT THE ISLAND HOSTED THE MISS USA PAGEANT IN JANUARY MORE IMPORTANT MEXICANS ARE RETURNING IN A BIG WAY AN IMPROVED ECONOMY AND OPTIMISM GENERATED BY THE NORTH AMERICAN FREE TRADE AGREEMENT GET PART OF THE CREDIT BUT THE CONVENTION AND VISITORS BUREAU HAS HELPED THINGS ALONG BY ADVERTISING IN THE MEXICAN MEDIA AND HIRING A STAFFER TO DEVOTE FULL TIME TO MEXICAN BUSINESS DEVELOPMENT LAST YEAR SOME 30000 MEXICANS STAYED ON THE ISLAND DURING EASTER WEEK TRADITIONALLY THE PEAK VACATION PERIOD UP 50 FROM 1991 AND THOSE NUMBERS WOULD BE EVEN HIGHER THIS YEAR IF THERE WERE ANY MORE ROOMS AVAILABLE THERE SOON WILL BE LOCAL DEVELOPERS RICHARD AND DENNIS FRANKE RECENTLY BROKE GROUND FOR A 51UNIT CONDOMINIUM TOWER ALL BUT 12 OF THE THREEBEDROOM 3 1/2BATH APARTMENTS HAVE ALREADY BEEN SOLD FOR 300000 TO 350000 EACH INCLUDING A 30 CASH DOWN PAYMENT ROUGHLY 60 OF THE BUYERS ARE MEXICAN SAYS RICHARD FRANKE WHO ADDS WE COULDN'T HAVE DONE THIS A FEW YEARS AGO FOR THE REST OF THIS MONTH THOUGH ALL ELSE TAKES A BACK SEAT TO THE SPRING BREAK CROWD AND SOUTH PADRE ALSO HAS HAD SOME GOOD LUCK HERE THIS YEAR GALVESTON FED UP WITH DRUNK ROWDY YOUNGSTERS JOINED SEVERAL OTHER TRADITIONAL SPRING BREAK GETAWAYS IN DECIDING NOT TO ENCOURAGE STUDENTS TO COME SOUTH PADRE ON THE OTHER HAND WAS ALREADY IN THE MIDST OF ITS BIGGEST COLLEGE MARKETING CAMPAIGN IN YEARS OFFICIALS SET UP BOOTHS ON AT LEAST 30 CAMPUSES TO RECRUIT STUDENTS AND THEY PLAYED UP THEIR LAISSEZFAIRE ATTITUDE BY BRINGING BACK AN OLD ADVERTISING THEME LET'S PADRE THE CAMPAIGN HOOKED BILL GIESELMAN A 21YEAROLD JUNIOR FROM MICHIGAN STATE UNIVERSITY WHO LOOKS BLEARYEYED ONE MORNING AFTER COMPLETING A 30HOUR DRIVE HERE WITH FRIENDS IT'S MORE LAIDBACK HERE THAN OTHER DESTINATIONS HE NOTES THEY LET YOU DRINK ON THE BEACH BIGGER FALLS TEXAS NO LONGER HAS BRAGGING RIGHTS TO THE BIGGEST ECONOMIC COLLAPSE OF RECENT YEARS MERRILL LYNCH & CO REPORTS THAT THE CURRENT CALIFORNIA RECESSION IS HALF AGAIN MORE SERIOUS WHILE MASSACHUSETTS' SITUATION IS EVEN WORSE THAN THAT ACCORDING TO THE INVESTMENTBANKING HOUSE TEXAS EMPLOYMENT FELL ABOUT 3 A YEAR AFTER THE 1986 OIL BUST BUT RECOVERED ALL ITS LOST GROUND WITHIN ABOUT 30 MONTHS CALIFORNIA'S EMPLOYMENT MEANWHILE IS DOWN 5 FROM ITS PEAK 40 MONTHS AGO AND CONTINUES TO FALL AS FOR MASSACHUSETTS EMPLOYMENT IS DOWN 12 FROM THE PEAK IN DECEMBER 1988 SEE RELATED LETTER TEXAS JOURNAL LETTERS TO THE EDITOR NO WET SHIRTS WSJ MARCH 16 1994 9403090035 YY94 MM03 9403160063 940316 US DROPS PLAN TO SELL QUOTAS FOR TEXTILES SALES OF RIGHTS FOR IMPORTS TO COVER GATT COSTS IS VIOLATION OF ACCORD BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS DROPPED A PLAN TO SELL QUOTA RIGHTS FOR TEXTILE IMPORTS AS A WAY OF PAYING FOR THE RECENTLY NEGOTIATED WORLD TRADE PACT BECAUSE THE PLAN WOULD VIOLATE THE PACT OFFICIALS SAID THE US TRADE REPRESENTATIVE'S OFFICE CONDUCTED A LEGAL ANALYSIS OF THE PLAN AND FOUND THAT IT VIOLATED SPECIFIC PROVISIONS OF THE TRADE ACCORD NEGOTIATED UNDER AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN DECEMBER BILATERAL AGREEMENTS NEGOTITATED BY THE US AND TEXTILE EXPORTERS UNDER AN INTERNATIONAL PACT CALLED THE MULTIFIBRE AGREEMENT ALSO BAR THE PLAN THE REJECTION OF THE TEXTILE PLAN WHICH OFFICIALS FLOATED AS AN OPTION EARLY THIS MONTH LEAVES THE ADMINISTRATION WITHOUT ANY CLEAR WAY TO MAKE UP A BUDGET SHORTAGE OF 139 BILLION OVER FIVE YEARS THAT'S THE AMOUNT THE WHITE HOUSE BUDGET OFFICE ESTIMATES THE GATT ACCORD WOULD REDUCE PROJECTED TARIFF RECEIPTS THE DEFICITREDUCTION LAW REQUIRES NEW REVENUES OR SPENDING CUTS TO OFFSET LEGISLATION THAT WOULD WIDEN THE DEFICIT SURMOUNTING THE BUDGET HURDLE HAS PROVED EXTRAORDINARILY DIFFICULT AND HAS HELD UP ADMINISTRATION PLANS TO PUSH QUICKLY FOR GATT APPROVAL BEFORE OPPOSITION IN CONGRESS COULD FORM US TRADE REPRESENTATIVE MICKEY KANTOR TOLD A CONGRESSIONAL COMMITTEE YESTERDAY THAT IF CONGRESS DIDN'T APPROVE THE ACCORD THIS YEAR THE US COULD BE CRITICIZED INTERNATIONALLY BECAUSE WE HELD UP THE IMPLEMENTATION OF THE NEW TRADE REGIME SOME CLINTON OFFICIALS FAVOR ASKING CONGRESS FOR A BUDGET WAIVER WHICH WOULD REQUIRE 60 VOTES IN THE SENATE BUT IT'S FAR FROM CLEAR THAT THE REPUBLICAN MINORITY WOULD GO ALONG MISSOURI SEN JOHN DANFORTH AND OTHER REPUBLICANS HAVE CRITICIZED THE GATT ACCORD FOR ALLOWING GOVERNMENTS TO HEAVILY SUBSIDIZE COMMERCIAL RESEARCH BY SETTING UP AN AUCTION FOR THE RIGHTS THE TEXTILE PLAN WOULD HAVE OVERHAULED THE CURRENT SYSTEM OF ALLOCATING IMPORT QUOTAS IN THE PAST PRIVATE ECONOMISTS ESTIMATED THAT SELLING US TEXTILE AND APPAREL QUOTAS COULD GENERATE AS MUCH AS 6 BILLION A YEAR WHITE HOUSE ECONOMISTS ASKED TRADE OFFICIALS TO EXPLORE THE IDEA BUT UNDER RULES GOVERNING TEXTILE TRADE THE ADMINISTRATION'S LEGAL ANALYSIS FOUND ONLY EXPORTERS ARE ALLOWED TO SELL QUOTA RIGHTS THAT'S PART OF AN IMPLICIT DEAL BETWEEN IMPORTING NATIONS SUCH AS THE US AND EXPORTING NATIONS WHICH ARE DEVELOPING COUNTRIES LARGELY EXPORTING NATIONS AGREE TO LIMIT THEIR SHIPMENTS IN THE EXPECTATION THAT THEY WILL BE ABLE TO RAISE MORE MONEY BY SELLING EXPORT LICENSES TO TEXTILE COMPANIES 9403160062 940316 NORTH KOREA PREVENTS FULL INSPECTION OF NUCLEAR SITES BY INTERNATIONAL TEAM BY THOMAS E RICKS AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON INTERNATIONAL INSPECTORS WERE BARRED FROM CONDUCTING A FULL INSPECTION OF NORTH KOREAN NUCLEAR SITES OFFICIALS SAID INCREASING THE CHANCES OF A DIPLOMATIC SHOWDOWN BETWEEN THE US AND PYONGYANG INSPECTORS FROM THE VIENNABASED INTERNATIONAL ATOMIC ENERGY AGENCY WERE PREVENTED FROM TAKING SAMPLES FROM AT LEAST ONE SITE AND THEY ALSO FOUND EVIDENCE THAT SEALS ON BINS OF SOME NUCLEAR MATERIALS HAD BEEN TAMPERED WITH ACCORDING TO US OFFICIALS THE SEALS HAD BEEN PLACED DURING PREVIOUS INSPECTIONS TO ENSURE THAT NUCLEAR MATERIALS WEREN'T DIVERTED THE US HAS SAID IT WILL BREAK OFF TALKS WITH NORTH KOREA IF THE IAEA SAYS IT CAN'T CERTIFY THAT SAFEGUARDS ON NUCLEAR MATERIALS HAVE BEEN MAINTAINED THE US OFFICIALS SAID THEY EXPECT A REPORT FROM IAEA CHIEF HANS BLIX TODAY AN AGENCY SPOKESMAN SAID YESTERDAY THAT CERTAIN RESTRICTIONS HAD BEEN PLACED ON THE INSPECTORS AT AT LEAST ONE SITE BUT HE SAID THE AGENCY COULDN'T ASSESS THE SIGNIFICANCE OF THOSE RESTRICTIONS UNTIL THE INSPECTORS RETURN TO VIENNA TO MAKE THEIR REPORT THE INSPECTIONS WHICH NORTH KOREA ALLOWED ONLY RELUCTANTLY WERE DESIGNED TO DETERMINE WHETHER NORTH KOREA HAS SECRETLY DIVERTED MATERIALS THAT COULD BE USED TO MAKE NUCLEAR WEAPONS ONE SENIOR US OFFICIAL CALLED THE TWOWEEK INSPECTION BY THE IAEA DISAPPOINTING BUT NOT A DISASTER AT LEAST AS FAR AS WE CAN TELL ANOTHER US OFFICIAL MINIMIZED THE SIGNIFICANCE OF THE STATE OF THE SEALS SAYING SEALS ARE BROKEN ALL THE TIME IN THE COURSE OF ROUTINE OPERATIONS IF THE IAEA DECLINES TO CERTIFY THE CONTINUITY OF NUCLEAR SAFEGUARDS IN NORTH KOREA THE ADMINISTRATION WILL HAVE TO CONSIDER WHETHER TO ASK THE UNITED NATIONS TO IMPOSE ECONOMIC SANCTIONS ON PYONGYANG NOTED GARY MILHOLLIN DIRECTOR OF THE WISCONSIN PROJECT ON NUCLEAR ARMS CONTROL A PRIVATE ARMSCONTROL RESEARCH GROUP THE PRESSURE WOULD BE IRRESISTIBLE TO MOVE TOWARD SANCTIONS HE PREDICTED THE US COURSE OF ACTION ALSO WILL BE AFFECTED BY THE OUTCOME OF TALKS SET FOR TODAY BETWEEN NORTH KOREA AND SOUTH KOREA THE US PROMISED LAST MONTH TO SUSPEND PLANNED TEAM SPIRIT MILITARYTRAINING EXERCISES WITH SOUTH KOREA AND TO CONDUCT HIGHLEVEL TALKS WITH NORTH KOREA ON THE CONDITION THAT NORTH KOREA ALLOW A FULL INSPECTION OF PYONGYANG'S SEVEN DECLARED NUCLEAR SITES IN ADDITION NORTH KOREA WAS TO AGREE TO EXCHANGE DIPLOMATIC ENVOYS WITH THE SOUTH THE SENIOR US OFFICIAL SPECULATED THAT THE NORTH KOREANS MIGHT SEEK IN THE COMING DAYS TO SHIFT ATTENTION FROM THE NUCLEARINSPECTION ISSUE BY BECOMING MORE FORTHCOMING ON THE DIPLOMATIC FRONT AND MOVING TOWARD AN EXCHANGE OF ENVOYS BUT THE OFFICIAL SAID THE US WOULDN'T SUCCUMB TO SUCH A PLOY AND WOULD CONTINUE TO INSIST ON FULL INSPECTIONS THE OFFICIAL ALSO HELD OUT THE POSSIBILITY THAT AN ADDITIONAL INSPECTION COULD BE HELD DURING THE SIX DAYS LEFT BEFORE US TALKS WITH NORTH KOREA ARE SCHEDULED TO RESUME IT WOULD BE DIFFICULT BUT NOT IMPOSSIBLE TO HAVE THE INSPECTION TEAM RETURN SO QUICKLY HE SAID THAT IS UP TO BLIX HE SAID REFERRING TO THE IAEA'S CHIEF 9403160060 940316 BUSINESS BRIEF 3COM CORP CHARGE PRODUCES NET LOSS FOR QUARTER ENDED FEB 28 INCLUDING THE CHARGE THE SANTA CLARA CALIF COMPUTERNETWORKING COMPANY REPORTED A NET LOSS OF 1035 MILLION OR 328 A SHARE IN THE FISCAL QUARTER ENDED FEB 28 COMPARED WITH NET INCOME OF 102 MILLION OR 31 CENTS A SHARE THE YEAR EARLIER SALES ROSE TO 2181 MILLION FROM 1613 MILLION EXCLUDING THE CHARGE NET WOULD HAVE BEEN 249 MILLION OR 72 CENTS A SHARE ANALYSTS HAD EXPECTED THE COMPANY TO EARN ABOUT 66 CENTS A SHARE THE CHARGE STEMMED FROM 3COM'S ACQUISITION OF TWO SMALLER NETWORKING COMPANIES SYNERNETICS INC FOR 104 MILLION AND CENTRUM COMMUNICATIONS INC FOR 36 MILLION THE COMPANY SAID 9403160059 940316 ABREAST OF THE MARKET INDUSTRIALS DECLINE 1339 POINTS DESPITE A RALLY IN BOND MARKET BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS WERE MIXED DESPITE A RALLY IN BONDS EVEN THOUGH THE FIRST OF THIS WEEK'S KEY INFLATION READINGS REASSURED THE BOND MARKET STOCK INVESTORS REMAINED HESITANT TO MAKE MAJOR COMMITMENTS PROFITTAKING IN SOME BIG ECONOMICALLY SENSITIVE STOCKS HELPED SEND THE DOW JONES INDUSTRIAL AVERAGE DOWN 1339 TO 384959 THE AVERAGE WAS DOWN MORE THAN 20 POINTS AT ITS SESSION LOW BROADBASED INDEXES THAT TRACK MOSTLY NEW YORK STOCK EXCHANGE ISSUES WERE SOMEWHAT STRONGER HOWEVER ADVANCING ISSUES MEANWHILE OUTPACED DECLINERS ON THE BIG BOARD BY 1138 TO 1000 VOLUME ON THE EXCHANGE WAS ACTIVE AT 3033 MILLION SHARES COMPARED WITH A MODERATE 2601 MILLION SHARES MONDAY THE TREASURY'S 30YEAR BOND JUMPED MORE THAN 7/8 OF A POINT AIDED BY A LABOR DEPARTMENT REPORT SHOWING A SMALLERTHANEXPECTED RISE IN CORE INFLATION EXCLUDING FOOD AND ENERGY PRICES THE PRODUCER PRICE INDEX WAS UP 01 COMPARED WITH AN EXPECTED 02 RISE A READING ON CONSUMERLEVEL INFLATION IS DUE FROM THE LABOR DEPARTMENT TODAY ALTHOUGH A JUMP IN BOND PRICES AND THE RESULTING DROP IN MARKET INTEREST RATES OFTEN WILL TRIGGER BUYING IN STOCKS THAT DIDN'T HAPPEN YESTERDAY PARTIALLY DEPRESSING STOCKS TRADERS SAID WAS HEAVY SELLING IN STOCKINDEX FUTURES CONTRACTS SEVERAL OBSERVERS SAID THAT SELLING IN TANDEM WITH BUYING IN BOND FUTURES SEEMED TO INDICATE THAT SOME INVESTORS WERE RESHAPING THEIR PORTFOLIOS TO HOLD MORE BONDS AND FEWER STOCKS THE STANDARD & POOR'S 500STOCK INDEX FELL 038 TO 46701 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 002 TO 25899 AND THE DOW JONES EQUITY MARKET INDEX EASED 011 TO 44271 THE NASDAQ COMPOSITE INDEX THOUGH MANAGED A GAIN OF 072 TO 79352 PARTLY AIDED BY A SECOND DAY OF STRENGTH IN TECHNOLOGY STOCKS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADDED 007 TO 46813 IN THE NASDAQ STOCK MARKET'S TECHNOLOGY SEGMENT MICROSOFT ROSE 1 TO 84 7/8 AND INTEL ADVANCED 1 1/4 TO 71 1/4 3COM RALLIED 3 5/8 TO 60 AHEAD OF ITS THIRDQUARTER EARNINGS REPORT WHICH WAS RELEASED AFTER THE MARKET CLOSED MEANWHILE AMONG CYCLICALS THAT HURT THE DOW JONES INDUSTRIALS GENERAL MOTORS FELL 1 1/4 TO 61 1/2 UNITED TECHNOLOGIES SHED 1 3/4 TO 68 AND BOEING LOST 1 1/8 TO 46 3/4 FINANCIAL STOCKS WERE STRONG AIDED BY THE BOND RALLY TAKEOVER NEWS AND UPBEAT ANALYST COMMENTS KEMPER SURGED 4 3/4 TO 61 3/4 AFTER LEAPING 16 1/8 MONDAY ON NEWS THAT GENERAL ELECTRIC'S GE CAPITAL UNIT HAS MADE AN OFFER TO ACQUIRE THE COMPANY THE LONG GROVE ILL INSURANCE AND SECURITIES BROKERAGE CONCERN HAS REBUFFED THE 55ASHARE BID GE CAPITAL HAS SAID IT MIGHT INCREASE THE OFFER GE SHARES EASED 3/8 TO 104 7/8 SHARES OF MUTUALFUND COMPANIES RALLIED ON THE KEMPER BID ANALYSTS SAID THAT GE CAPITAL'S MOTIVATION IN PURSUING KEMPER MIGHT BE TIED IN PART TO EFFORTS TO BOLSTER GE CAPITAL'S MUTUALFUND AND ANNUITIES BUSINESS THE STOCK OF DREYFUS WHICH IN DECEMBER AGREED TO BE ACQUIRED BY MELLON BANK ROSE 1 1/2 TO 49 T ROWE PRICE ADDED 3/4 TO 36 3/4 ON NASDAQ SEVERAL INSURANCE STOCKS RALLIED AFTER KIDDER PEABODY & CO MADE POSITIVE COMMENTS ABOUT THE PROPERTY AND CASUALTY BUSINESS ANALYST STEVEN GAVIOS REPEATED STRONG BUY RECOMMENDATIONS ON CHUBB WHICH ROSE 3/8 TO 73 3/8 GENERAL RE WHICH ADDED 5/8 TO 105 3/8 AND AMERICAN INTERNATIONAL WHICH CLIMBED 7/8 TO 83 3/4 ELSEWHERE COMPANIA DE TELEFONOS DE CHILE SLUMPED 15 3/4 TO 100 1/2 BEFORE TRADING WAS HALTED THE TELEPHONE SERVICE COMPANY SAID A MOVE BY CHILEAN REGULATORS TO ESTABLISH TARIFFS WOULD HURT ITS BUSINESS THE STOCK DIDN'T RESUME TRADING YESTERDAY FOLLOWING THE MIDDAY HALT A SPOKESWOMAN SAID THE BIG BOARD HAD NO COMMENT ON WHY THE TRADING HALT WASN'T LIFTED OR WHEN IT WILL BE PERRIGO TUMBLED 5 TO 22 3/8 ON NASDAQ SMITH BARNEY SHEARSON LOWERED ITS EARNINGS ESTIMATES FOR THE ALLEGAN MICH MAKER OF DRUGS AND PERSONALCARE PRODUCTS A SPOKESMAN FOR PERRIGO WASN'T AVAILABLE STARBUCKS RALLIED 2 1/4 TO 24 1/2 ON NASDAQ AFTER THE SEATTLE COFFEE SHOP CONCERN SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE COFFEE CONNECTION INC FOR NEWLY ISSUED STOCK STARBACKS SAID THE MOVE WILL HELP ITS EFFORT TO INCREASE ITS PRESENCE IN THE NORTHEAST CAPITAL CITIES/ABC ADDED 11 3/4 TO 708 3/4 THE NEW YORK MEDIA CONCERN IN MAY WILL ASK SHAREHOLDERS TO APPROVE A 10FOR1 STOCK SPLIT BIOGEN LOST 3 TO 38 1/2 ON NASDAQ A SPOKESWOMAN SAID THE CAMBRIDGE MASS COMPANY WASN'T AWARE OF ANY CORPORATE NEWS TO ACCOUNT FOR THE SLIDE OTHER BIOTECHNOLOGY ISSUES WERE MIXED AMGEN FELL 3/4 TO 39 1/4 WHILE GENZYME WAS UNCHANGED AT 28 1/4 BOTH ON NASDAQ REGENERON PHARMACEUTICALS A SMALL STOCK TUMBLED 4 3/8 TO 8 3/4 ON NASDAQ AFTER DISAPPOINTING NEWS ABOUT A DRUG IT IS DEVELOPING TO TREAT LOU GEHRIG'S DISEASE IN YESTERDAY'S TRADING FROM A TECHNICAL STANDPOINT BONDS MIGHT HAVE BEEN MORE ATTRACTIVE THAN STOCKS PETER CANELO A MARKET STRATEGIST AT NATWEST SECURITIES NOTED THAT ALTHOUGH THE BOND MARKET STARTED YESTERDAY NEAR ITS RECENT LOWS THE DOW JONES AVERAGE WAS ABOUT 100 POINTS ABOVE THE INTRADAY LOW IT SET MARCH 2 STOCKS ARE CLEARLY AHEAD OF BONDS THEY ARE DUE FOR A LITTLE REST HE SAID I THINK WHAT YOU MAY HAVE HAD TODAY IS PART OF A RUSH BACK INTO THE BOND MARKET SAID PHILIP SMYTH AN ANALYST AT BIRINYI ASSOCIATES A GREENWICH CONN MARKET RESEARCH FIRM THE FOCUS POSSIBLY WAS TO BUY BONDS EVEN AT THE EXPENSE OF LIQUIDATING STOCKS A LITTLE BIT HE SAID 9403160058 940316 INTERNATIONAL BRIEF COMPANIA DE TELEFONOS DE CHILE SA TARIFF DECREE UPSETS PLAN FOR BUSINESS STOCKS PLUNGE COMPANIA DE TELEFONOS DE CHILE SA SAID A DECREE FROM CHILEAN REGULATORY AUTHORITIES SETTING ITS TARIFFS FOR REGULATED SERVICES FOR THE NEXT FIVE YEARS WOULD HURT ITS 19941998 BUSINESS PLAN THE TELEPHONE COMPANY'S AMERICAN DEPOSITARY RECEIPTS ARE TRADED ON THE NEW YORK STOCK EXCHANGE THE ADRS WERE LAST QUOTED AT 10050 OFF 1575 OR 135 AS TRADING WAS HALTED AT MIDDAY AND DID NOT RESUME IN A NEWS RELEASE THE COMPANY IN SANTIAGO CHILE SAID IT ASKED ITS GENERAL COMPTROLLER TO DECLARE THE PROPOSED DECREE NOT LEGAL SINCE IT CONTAINS ELEMENTS NOT INCLUDED IN THE TECHNICAL ECONOMIC BASIS OR IN THE LAW 9403160057 940316 BUSINESS BRIEF BRUSH WELLMAN INC NET INCOME FOR FIRST QUARTER IS SEEN EXCEEDING ESTIMATES BRUSH WELLMAN INC SAID STRONG DEMAND FOR ITS ALLOY PRODUCTS HAS RESULTED IN AN IMPROVING OUTLOOK FOR FIRSTQUARTER EARNINGS THE COMPANY SAID IT IS LIKELY TO EARN 30 CENTS TO 35 CENTS A SHARE FOR THE QUARTER COMPARED WITH WALL STREET ANALYSTS' ESTIMATES OF 16 CENTS TO 20 CENTS A SHARE FOR THE YEARAGO QUARTER THE CLEVELAND CONCERN REPORTED NET OF 115 MILLION OR SEVEN CENTS A SHARE IN A STATEMENT THE COMPANY CITED IMPROVING SALES OF BERYLLIUMCONTAINING ALLOYS WORLDWIDE IT CAUTIONED HOWEVER THAT THE EARNINGS GROWTH IS EXPECTED TO MODERATE IN THE SECOND HALF CITING PARTICULAR CONCERN FOR DEFENSERELATED SALES 9403160056 940316 BUSINESS BRIEF PHILLIPS PETROLEUM CO AMENDED PLANS TO CUT COSTS OF REBUILDING NORWAY FIELD PHILLIPS PETROLEUM CO BARTLESVILLE OKLA SAID AMENDED PLANS FOR REBUILDING NORWAY'S EKOFISK OIL FIELD PUT THE COST AT ABOUT 3 BILLION COMPARED WITH EARLIER ESTIMATES OF AS MUCH AS 4 BILLION PHILLIPS SAID THE NORWEGIAN GOVERNMENT'S OBJECTIONS TO PARTS OF THE ORIGINAL DECEMBER 1993 PLAN AS WELL AS ADDITIONAL STUDIES PROMPTED THE UNIT PHILLIPS PETROLEUM CO NORWAY AND ITS PARTNERS IN PHILLIPS NORWAY GROUP TO AMEND THE PLAN THE OIL AND NATURAL GAS COMPANY SAID THE NEW PLAN MAKES GREATER USE OF THE FIELD'S EXISTING INFRASTRUCTURE WHILE CONFORMING WITH NORWEGIAN SAFETY REQUIREMENTS PHILLIPS SAID IT EXPECTS THE NORWEGIAN PARLIAMENT TO MAKE A DECISION ON THE AMENDED PLAN LATE IN ITS SPRING SESSION PHILLIPS SAID ITS UNIT HAS A 3696 INTEREST IN PHILLIPS NORWAY GROUP OTHER PARTNERS ARE SUBSIDIARIES OF PETROFINA SA OF BRUSSELS 30 ITALY'S STATEOWNED OIL COMPANY ENTE NAZIONALE IDROCARBURI 1304 SOCIETE NATIONALE ELF AQUITAINE OF FRANCE 759 AND NORSK HYDRO SA OF NORWAY 67 THE REMAINING INTERESTS ARE HELD BY SMALL EUROPEAN COMPANIES 9403160055 940316 TECHNOLOGY BRIEF GENERAL INSTRUMENT CORP MOTOROLA TO RECEIVE LICENSE TO MANUFACTURE MICROCHIPS GENERAL INSTRUMENT CORP MOVING TO DEFUSE A BATTLE OVER TECHNICAL STANDARDS FOR DIGITAL TELEVISION SAID IT WILL LICENSE MOTOROLA INC TO MANUFACTURE ITS MICROCHIP TECHNOLOGY FOR USE IN FUTURE CABLE AND SATELLITETV SYSTEMS GENERAL INSTRUMENT IN CHICAGO THE NO 1 MAKER OF TV SETTOP DECODER DEVICES AGREED TO LET MOTOROLA BUILD CHIPS BASED ON ITS PROPRIETARY DIGICIPHER II TECHNOLOGY WHICH HANDLES KEY FUNCTIONS FOR INTERACTIVE TELEVISION INCLUDING VIDEO COMPRESSION AND SCRAMBLING FEATURES FOR PREVENTING PIRACY THE CHIPS ALSO CAN HANDLE SIGNALS COMPRESSED USING A RIVAL INTERNATIONAL STANDARD CALLED MPEG2 THAT IS BEING DEVELOPED BY AN INTERNATIONAL STANDARDS GROUP SOME POTENTIAL CUSTOMERS HAD POSTPONED ORDERS FOR THE PROPRIETARY GENERAL INSTRUMENT TECHNOLOGY TO WAIT FOR MPEG2 PRODUCTS SAID STEVE KRAUSE AN ANALYST AT SRI INTERNATIONAL IN MENLO PARK CALIF 9403160054 940316 WHO'S NEWS MERRYGOROUND IS EXPECTED TO NAME BELSKY TO HEAD CHAINS JOPPA MD MERRYGOROUND ENTERPRISES INC IS EXPECTED TO NAME HANK J BELSKY EXECUTIVE VICE PRESIDENT OF THE COMPANY AND HEAD OF ITS DEJAIZ AND CHESS KING MEN'S CLOTHING STORE CHAINS MR BELSKY WHO HAD BEEN EXECUTIVE VICE PRESIDENT OF AMERICO GROUP INC A NEW YORKBASED APPAREL MANUFACTURER IS EXPECTED TO JOIN MERRYGOROUND ON APRIL 4 ACCORDING TO PEOPLE CLOSE TO THE COMPANY COMPANY EXECUTIVES COULDN'T BE REACHED FOR COMMENT MR BELSKY WILL WORK PRIMARILY ON REFOCUSING THE MERCHANDISING DIRECTION OF THE STORE CHAINS ACCORDING TO PEOPLE CLOSE TO MERRYGOROUND MERRYGOROUND OPERATES MORE THAN 1400 STORES IN 44 STATES THAT SELL CONTEMPORARY FASHIONS TO YOUNG MEN AND WOMEN DEJAIZ OPERATES 366 STORES AND CHESS KING OPERATES ABOUT 400 STORES THE COMPANY HAS BEEN SEARCHING FOR A CHIEF MERCHANT WHO WOULD AT SOME POINT SUCCEED LEONARD WEINGLASS MERRYGOROUND'S FOUNDER AND CHAIRMAN WHO RECENTLY RETURNED TO TAKE OVER THE COMPANY'S MERCHANDISING OPERATIONS ACCORDING TO THOSE FAMILIAR WITH THE COMPANY'S PLANS MR BELSKY IS THE MOST LIKELY CANDIDATE TO BECOME THE COMPANYWIDE HEAD OF MERCHANDISING THE COMPANY IS EXPECTED TO CONTINUE ITS SEARCH FOR TOP MERCHANTS FOR ITS REMAINING CHAINS MERRYGOROUND WHICH FILED FOR FEDERAL BANKRUPTCY PROTECTION IN JANUARY HAS HAD DISAPPOINTING SALES FROM STORES OPEN AT LEAST A YEAR IT ALSO HAS HAD TROUBLE MAINTAINING SUFFICIENT INVENTORY LEVELS AT STORES THE COMPANY IS WORKING TO IMPROVE RELATIONSHIPS WITH VENDORS BUT SAID IT WILL TAKE A FEW MONTHS FOR THE INVENTORY LEVELS TO REBOUND 9403160053 940316 BUSINESS BRIEF FARMERS & MECHANICS BANK CONCERN TO RESTRICT INVESTORS TO PROTECT ITS TAX BENEFIT FARMERS & MECHANICS BANK MIDDLETOWN CONN SAID IT PLANS TO ENFORCE A THREEYEAR RESTRICTION ON ANY GROUP PURCHASING 5 OR MORE OF ITS SHARES WITHOUT BOARD APPROVAL TO PROTECT A TAX BENEFIT THE BANK WHICH WENT PUBLIC IN DECEMBER HAD A RECENT FLURRY OF INVESTOR INTEREST AFTER A GROUP DISCLOSED IN A FILING THAT IT HAD PURCHASED 852 OF THE BANK BANK OFFICIALS SAID THE GROUP WHICH THEY DIDN'T IDENTIFY WASN'T INTERESTED IN A TAKEOVER BID FOR THE BANK THEY ALSO SAID THAT AFTER DISCUSSING THE RESTRICTION WITH THE GROUP THEY BELIEVE THE GROUP WILL TRY TO COMPLY THE BANK HAS ABOUT 95 MILLION OF DEFERRED TAX BENEFITS 9403160052 940316 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN THEY JUST DON'T GET IT OR THEY SIMPLY DON'T BELIEVE IT TREASURY OFFICIALS HAVE REPEATEDLY INSISTED THAT FEWER THAN 2 OF ALL INDIVIDUAL TAXPAYERS WILL OWE MORE BECAUSE OF THE NEW HIGHER INCOMETAX RATES IN THE 1993 LAW BUT A NEW WALL STREET JOURNAL/NBC NEWS POLL SHOWS 43 THINK THE NEW LAW WILL MAKE THEM PAY MORE IN INCOME TAXES ANOTHER 43 THINK THEY WILL OWE ABOUT THE SAME AND 9 EXPECT TO PAY LESS AMONG THOSE WITH HOUSEHOLD INCOME OVER 50000 55 THINK THEY WILL OWE MORE AMONG THOSE WITH INCOME UNDER 20000 26 EXPECT TO PAY MORE THE ADMINISTRATION CONTENDS THAT THE IMPACT OF THE TAX INCREASE ON THE ECONOMY WILL BE SMALL BUT SOME ECONOMISTS DISAGREE IRWIN KELLNER OF CHEMICAL BANK SAYS BUSINESS ALREADY IS SLOWING UNDER THE WEIGHT OF INCREASED TAXES BAD WEATHER THE EARTHQUAKE AND HIGHER INTEREST RATES IN THE JOURNAL/NBC POLL 23 SAY THEY ARE POSTPONING MAJOR PURCHASES OR TRAVEL PLANS BECAUSE OF CONCERN ABOUT HOW MUCH THEY WILL OWE IN TAXES THIS YEAR BUT 75 SAY THEY AREN'T DELAYING SPENDING OR TRAVELING THE SUPREME COURT CONSIDERS A CHALLENGE TO A RETROACTIVE TAXLAW CHANGE THE JUSTICES RECENTLY HEARD LAWYERS ARGUE ONE OF THIS YEAR'S MOST CLOSELYWATCHED TAX CASES US VS CARLTON AT ISSUE IS AN ESTATETAX CHANGE THAT CONGRESS ENACTED IN DECEMBER 1987 RETROACTIVE TO 1986 THE CASE IS DRAWING INTENSE SCRUTINY BECAUSE THE 1993 TAX LAW ENACTED LAST AUGUST RAISED TAXES ON MANY UPPERINCOME PEOPLE RETROACTIVE TO JAN 1 1993 BUT SINCE FEDERAL COURTS PREVIOUSLY HAVE UPHELD MANY RETROACTIVE TAXLAW CHANGES SOME LAWYERS PREDICT THE SUPREME COURT WILL DO SO IN THIS CASE AFTER LISTENING TO JUSTICES GRILL GOVERNMENT LAWYERS THOUGH A FEW ANALYSTS AREN'T SO SURE OF THE OUTCOME THE JUSTICES APPEARED HIGHLY SKEPTICAL OF THE THEORY THAT THE ORIGINAL LAW WAS SO BONEHEADED THAT TAXPAYERS SHOULD HAVE REALIZED IT WAS TOO GOOD TO BE TRUE ARE YOU SUPPOSED TO READ A STATUTE WITH THE IDEA THAT THIS IS A WEIRD PROVISION ERGO CONGRESS NEVER WOULD HAVE ADOPTED IT CHIEF JUSTICE REHNQUIST ASKED CERTAINLY 24 YEARS OF EXPERIENCE HERE SUGGEST THE OPPOSITE TO ME A TAX BREAK ISN'T AS GENEROUS AS SOME UPPERINCOME TAXPAYERS HAD HOPED TO EASE THE PAIN OF THE 1993 LAW CONGRESS IS ALLOWING MANY UPPERINCOME TAXPAYERS TO SPREAD OUT PAYMENT OF THEIR HIGHER TAXES OVER THE NEXT TWO YEARS WITH NO INTEREST THUS SOMEONE OWING 6000 MORE BECAUSE OF THE HIGHER RATES COULD PAY 2000 BY APRIL 15 2000 BY APRIL 1995 AND 2000 BY APRIL 1996 ANYONE WHO QUALIFIES CERTAINLY SHOULD ACCEPT SAYS MARK MCCONAGHY OF PRICE WATERHOUSE IN WASHINGTON THAT'S A NOBRAINER IT'S AN INTERESTFREE LOAN BUT MANY PEOPLE ARE DISCOVERING THEY CAN DEFER LESS THAN THEY THOUGHT SAYS SIDNEY KESS A NEW YORK LAWYER AND ACCOUNTANT FOR EXAMPLE SAYS RANDALL WEISS OF DELOITTE & TOUCHE IN WASHINGTON MANY UPPERINCOME PEOPLE WITH LARGE AMOUNTS OF CAPITAL GAINS STATE AND LOCAL TAXES OR MISCELLANEOUS DEDUCTIONS MAY HAVE TO PAY MOST OF THEIR TAX INCREASE THIS YEAR THE SPECIAL OFFER DOESN'T APPLY TO INCREASES CAUSED BY THE ALTERNATIVE MINIMUM TAX ALSO COMPLEX AMTCALCULATION RULES MAY LIMIT THE DEFERRAL FOR MANY PEOPLE KESS SAYS SOME PEOPLE ARE FINDING THAT THEY CAN DEFER SO LITTLE THAT THEY ARE PAYING THEIR ENTIRE TAB THIS YEAR HELP WANTED CONGRESS'S JOINT COMMITTEE ON TAXATION NEEDS A NEW CHIEF OF STAFF TO REPLACE HANK GUTMAN WHO LEFT AT THE END OF LAST YEAR TO JOIN THE WASHINGTON OFFICE OF LAW FIRM KING & SPALDING THE JOB PAYS ABOUT 120000 PRESSURE GROWS ON TREASURY OFFICIALS TO APPROVE A TAX TREATY WITH PORTUGAL SEVERAL LAWMAKERS AND FORMER REP TONY COELHO WRITE BENTSEN URGING HIM TO SPEED UP THE PROCESS BUT TREASURY IS WORRIED ABOUT UNRESOLVED BANKSECRECY AND TAXEVASION ISSUES RELATED TO THE MADEIRA ISLANDS ONLY 10 OF THE PEOPLE SURVEYED IN THE NEW WALL STREET JOURNAL/NBC NEWS POLL RANK FEDERAL TAXES AS THE MOST IMPORTANT ECONOMIC ISSUE FACING THE COUNTRY TAXES FINISHED A DISTANT THIRD BEHIND UNEMPLOYMENT AND THE FEDERALBUDGET DEFICIT WHICH TIED FOR NO 1 WITH EACH SELECTED BY 33 AX THE MARRIAGE TAX SOME LAWMAKERS SAY BUT THEY FACE AN UPHILL BATTLE FOR YEARS MANY PEOPLE HAVE COMPLAINED BITTERLY ABOUT A BIZARRE TAXLAW QUIRK KNOWN AS THE MARRIAGE PENALTY THIS ODDITY MEANS MANY TWOINCOME MARRIED COUPLES MUST PAY MORE IN TAXES THAN THEY WOULD IF THEY HAD REMAINED SINGLE IN MANY CASES WEDDING BELLS CAN DRIVE UP A COUPLE'S INCOMETAX BILL BY SEVERAL THOUSAND DOLLARS THE 1993 LAW MADE IT EVEN MORE EXPENSIVE FOR SOME COUPLES A BILL INTRODUCED RECENTLY BY REP ISTOOK R OKLA AND COSPONSORED BY ABOUT 40 OTHER LAWMAKERS WOULD ELIMINATE THIS PENALTY THE EXISTING LAW AMOUNTS TO AN ANNUAL FEDERAL SURTAX ON MARRIAGE REP ISTOOK SAYS BUT FEW EXPECT THE BILL TO PASS ANYTIME SOON BECAUSE IT WOULD COST THE TREASURY SO MUCH YES IT WOULD BE EXPENSIVE BUT THIS IS A MATTER OF JUSTICE SAYS AN AIDE TO REP ISTOOK BRIEFS THE IRS RECEIVED 417 MILLION INDIVIDUAL INCOMETAX RETURNS AS OF MARCH 5 DOWN 16 MILLION FROM A YEAR AGO MOST WEALTHY PEOPLE BADLY UNDERESTIMATE HOW HEAVILY THEIR ESTATES WILL BE TAXED A US TRUST CORP SURVEY SHOWS THE AVERAGE ESTIMATE WAS ONLY 24 BUT US TRUST WARNS THE RANGE IS MORE LIKELY TO BE 37 TO 55 9403160051 940316 WHAT'S NEWS WORLDWIDE SETTLERS RALLIED IN ISRAEL AND THE ARMY BRACED FOR POSSIBLE MUSLIM ATTACKS TENS OF THOUSANDS OF RIGHTWING DEMONSTRATORS INCLUDING MANY JEWISH SETTLERS FROM THE OCCUPIED TERRITORIES MARCHED IN TEL AVIV TO PROTEST ISRAEL'S PEACE POLICIES THE ARMY MEANWHILE WAS ON HIGH ALERT AGAINST SUICIDE ATTACKS BY MUSLIM FUNDAMENTALISTS WHO HAD THREATENED VIOLENCE IF SETTLERS IN FIVE AREAS DIDN'T EVACUATE BY YESTERDAY TROOPS SET UP ROADBLOCKS AND CLASHED WITH PALESTINIANS IN JERUSALEM AND THE GAZA STRIP THE GOVERNMENT BROADENED ITS CRACKDOWN AGAINST JEWISH EXTREMISTS BRINGING THE FOUNDING FATHER OF THE SETTLEMENT MOVEMENT RABBI MOSHE LEVINGER INTO COURT ON A TWOYEAROLD CHARGE ROSTENKOWSKI WON HIS RACE FOR NOMINATION TO A 19TH TERM GARNERING ABOUT HALF THE VOTE IN YESTERDAY'S DEMOCRATIC CONGRESSIONAL PRIMARY THE CHICAGO REPRESENTATIVE FACES POTENTIAL GRANDJURY INDICTMENT AFTER A PROBE OF HIS OFFICE AND CAMPAIGN FINANCES INTERNATIONAL INSPECTORS WERE BARRED FROM CONDUCTING A FULL INSPECTION OF NORTH KOREAN NUCLEAR SITES WASHINGTON OFFICIALS SAID THE INSPECTORS WERE PREVENTED FROM TAKING SAMPLES FROM AT LEAST ONE SITE AND THEY ALSO FOUND EVIDENCE THAT SEALS ON BINS OF SOME NUCLEAR MATERIALS HAD BEEN TAMPERED WITH GUNMEN KIDNAPPED THE PRESIDENT OF MEXICO'S BIGGEST BANK AND BROKERAGE FIRM ALFREDO HARP HELU A 50YEAROLD BILLIONAIRE WHO IS THE PRESIDENT OF GRUPO FINANCIERO BANAMEXACCIVAL WAS PULLED FROM HIS CAR MONDAY AS HE WAS BEING DRIVEN TO WORK THE CIA'S DIRECTOR ANNOUNCED THAT HE WILL REQUIRE FINANCIAL STATEMENTS OF ALL AGENCY EMPLOYEES AND WILL LESSEN THE CIA'S RELIANCE ON LIE DETECTOR TESTS IN REACTION TO THE ARREST OF ACCUSED SPY AMES CLINTON HOSTED A TOWN MEETING IN NASHUA NH ANSWERING QUESTIONS ABOUT EDUCATION JOBS AND HEALTH CARE DENOUNCING THE PEOPLE WHO ARE GIVING ME HELL IN WASHINGTON HE SAID I'M GOING TO TRY TO GIVE YOU HEALTH AND TAKE WHATEVER IT IS THEY WANT TO GIVE ME IN RETURN A LEADING HOUSE DEMOCRAT SAID DETAILS OF THE WHITEWATER AFFAIR SHOULD BE AIRED QUICKLY AND HE SUGGESTED THAT CONGRESSIONAL HEARINGS WOULD BE IN THE PRESIDENT'S INTEREST REP HAMILTON OF INDIANA SAID IT WAS IMPORTANT TO COUNTER ANY PERCEPTION THAT THE WHITE HOUSE IS WITHHOLDING DATA NEW MEDICAL GUIDELINES WERE ISSUED BY A FEDERAL PANEL IN AN EFFORT TO IMPROVE TREATMENT FOR PATIENTS WITH SEVERE CHEST PAIN THE GUIDELINES ARE INTENDED TO HELP DOCTORS QUICKLY DETERMINE WHICH PATIENTS ARE AT LOW RISK OF A HEART ATTACK AND CAN BE TREATED AS OUTPATIENTS THE US AND RUSSIA WILL ALLOW EXPERTS TO VISIT EACH OTHER'S STORAGE SITES FOR DISMANTLED NUCLEAR WARHEADS ENERGY SECRETARY O'LEARY SAID THE ACCORD IS EXPECTED TO HELP THE TWO NATIONS BETTER MONITOR THE PROCESS RUSSIA AND LATVIA REACHED AGREEMENT ON WITHDRAWING RUSSIA'S REMAINING 12000 TROOPS FROM THE BALTIC COUNTRY BY THE END OF AUGUST RUSSIA WILL BE ALLOWED TO RETAIN ITS SKRUNDA RADAR STATION FOR FOUR YEARS A FIRE IN A SWITCHING CENTER DISRUPTED TELEPHONE SERVICE IN DOWNTOWN LOS ANGELES AND SOME SUBURBAN NEIGHBORHOODS FOR ABOUT 12 HOURS THE BLAZE AT A PACIFIC BELL OFFICE KNOCKED OUT SOME LOCAL AND LONGDISTANCE SERVICE AS WELL AS EMERGENCY 911 CALLS THE US IS DISPATCHING FIVE ANTIARTILLERY AND ANTIMORTAR RADARS TO UN FORCES IN BOSNIA TO BE OPERATED BY 60 MEMBERS OF THE JORDANIAN MILITARY THE PENTAGON ANNOUNCED THE EQUIPMENT CAN TRACE THE TRAJECTORIES OF ARTILLERY AND MORTAR ROUNDS A TWODAY JOBS CONFERENCE ENDED IN DETROIT WITH US TREASURY SECRETARY BENTSEN TELLING OFFICIALS FROM THE GROUP OF SEVEN NATIONS THAT THERE IS NO SINGLE SOLUTION NO ONE IDEA OR ACTION THAT WILL WORK FOR EVERY COUNTRY IN TRYING TO REDUCE UNEMPLOYMENT CLINTON HAS EXTENDED A US MORATORIUM ON UNDERGROUND NUCLEAR TEST EXPLOSIONS BY ONE YEAR THROUGH SEPTEMBER 1995 THE WHITE HOUSE SAID THE DECISION WAS BASED IN PART ON THE RESTRAINT THAT OTHER DECLARED NUCLEAR POWERS HAVE SHOWN IN NOT RESUMING TESTING AFTER CHINA'S TEST IN OCTOBER THE PRESIDENT'S PRESS SECRETARY SAID INDIAN PEACEKEEPERS SHOT DEAD NINE SOMALIS WHO ATTACKED A RELIEF CONVOY A UN SPOKESMAN SAID AS VIOLENCE APPEARED TO BE RISING IN SOMALIA MEANWHILE US OFFICIALS SAID AT LEAST SEVEN AIRMEN WERE KILLED IN MONDAY'S CRASH OF AN AMERICAN GUNSHIP EN ROUTE TO SOMALIA FROM KENYA 9403160050 940316 BUSINESS BRIEF STARBUCKS CORP COMPANY AGREES TO ACQUIRE COFFEE CONNECTION OF BOSTON ACCELERATING A MOVE INTO THE NORTHEAST STARBUCKS CORP SAID IT WILL BUY COFFEE CONNECTION INC FOR AN UNDISCLOSED AMOUNT OF NEWLY ISSUED STOCK COFFEE CONNECTION A PRIVATELY HELD COMPANY BASED IN BOSTON OPERATES 22 STORES IN MASSACHUSETTS CONNECTICUT AND NEW JERSEY STARBUCKS BASED IN SEATTLE SAID IT WILL CONTINUE TO OPERATE THE CHAIN UNDER ITS CURRENT NAME STARBUCKS HAD ALREADY ANNOUNCED PLANS NEXT MONTH TO OPEN ITS FIRST STORES IN BOSTON FOLLOWED BY NEW YORK AND MINNEAPOLIS THE COMPANY WHICH NOW HAS 300 STORES EXPECTS TO OPEN AT LEAST 78 NEW ONES IN 1994 ANALYSTS SAID THE DEAL WOULD INCREASE STARBUCK'S SALES AND POSSIBLY EARNINGS THIS YEAR THE COMPANY'S SHARES JUMPED 225 TO 2450 IN NASDAQ STOCK MARKET TRADING YESTERDAY 9403160048 940316 REVIEW & OUTLOOK EDITORIAL THE WHITE HOUSE PASSES HEREIN WE OFFER A CASE HISTORY OF WHY THIS WHITE HOUSE ROUTINELY STUMBLES INTO TROUBLE IT MAINLY HAS TO DO WITH WHAT NOW APPEARS TO BE SOME LEMMINGLIKE INSTINCT NEVER TO GIVE STRAIGHT ANSWERS TO EVEN LEGITIMATE QUESTIONS ABOUT ITS BEHAVIOR BY DEFAULT THE WORLD IS LEFT TO SPECULATE ABOUT WHAT EXACTLY IS GOING ON IN THERE LAST WEEK PRESS SECRETARY DEE DEE MYERS ACKNOWLEDGED THAT SHE AND MORE THAN 100 OTHER WHITE HOUSE STAFFERS HAVE FAILED TO OBTAIN PERMANENT WHITE HOUSE PASSES REP FRANK WOLF A VIRGINIA REPUBLICAN WHO HAS BEEN TRYING UNSUCCESSFULLY FOR NINE MONTHS TO GET A STRAIGHT ANSWER ON SECURITY PROCEDURES OUT OF THE WHITE HOUSE ASKS WHAT IS GOING ON OVER THERE THIS IS LIKE NO OTHER WHITE HOUSE I'VE EVER HEARD OF WHY DOES THIS MATTER EVER SINCE LYNDON JOHNSON TIGHTENED WHITE HOUSE SECURITY PROCEDURES THE SECRET SERVICE HAS SCREENED PRESIDENTIAL EMPLOYEES FOR SECURITY CONCERNS AS WELL AS ANY EMBARRASSMENT OR LACK OF SUITABILITY THEY MIGHT POSE FOR AN ADMINISTRATION ALL STAFFERS MUST FILL OUT A FORM 86 BACKGROUND QUESTIONNAIRE THIS IS THEN USED BY THE FBI TO CONDUCT A 45 TO 90DAY BACKGROUND CHECK WHICH THEN GOES TO THE SECRET SERVICE THE SERVICE CANNOT DECIDE WHO GETS WHITE HOUSE PASSES BUT IT WOULD BE UNPRECEDENTED FOR ITS SUGGESTED TURNDOWNS TO BE OVERRIDDEN BY THE WHITE HOUSE COUNSEL'S OFFICE WHOSE RESPONSIBILITY IT IS TO RULE ON WHO GETS A PERMANENT PASS SUCH A PASS IS A PREREQUISITE FOR A SEPARATE DETERMINATION ON WHO GETS A SECURITY CLEARANCE AND YES SECURITY STILL MATTERS AROUND THE WHITE HOUSE OF THE UNITED STATES MS MYERS SAYS THE PROBLEM IS MERELY PROCRASTINATION SHE SAYS ONLY A FEW SENIOR OFFICIALS LACK PERMANENT PASSES BUT AMONG THEM ARE HERSELF AND RICKI SEIDMAN WHO RUNS THE PRESIDENT'S SCHEDULING OFFICE MS MYERS CURRENTLY HAS ROUTINE ACCESS TO CLASSIFIED MATERIAL EVEN THOUGH SHE HASN'T FINISHED AN FBI CLEARANCE I HAVE NO EXCUSE SHE SAYS OF HER FAILURE TO PROVIDE THE PROPER BACKGROUND DATA SAYING SHE PUT IT OFF BECAUSE THE PROCESS WAS SO LABORIOUS WE TALKED ABOUT THIS WITH PHIL LARSEN WHO HAS WORKED FOR FIVE PRESIDENTS ON BUDGET AND ACCOUNTING ISSUES HE WAS JIMMY CARTER'S WHITE HOUSE ADMINISTRATIVE OFFICER UNDER PRESIDENT BUSH HE RAN THE WHITE HOUSE PERSONNEL MANAGEMENT OFFICE THIS ADMINISTRATION'S PROBLEMS WITH PEOPLE LACKING PERMANENT PASSES AND SECURITY CLEARANCES HAS NEVER HAPPENED BEFORE TO MY KNOWLEDGE HE TOLD US OTHERS HAD A PROBLEM CASE OR TWO BUT NOT DOZENS OF PEOPLE DESPITE MS MYERS'S ASSURANCES SEVERAL MEMBERS OF CONGRESS ARE CONCERNED THE SECURITY BOTTLENECKS MAY BE DUE IN PART TO WHAT THE FBI DISCOVERED THE WASHINGTON TIMES CITES INTELLIGENCE SOURCES WHO SAY THAT SOME OF THE CURRENT BACKGROUND CHECKS HAVE TURNED UP THE USE OF ILLEGAL DRUGS CONVICTIONS OF DRUG OFFENSES ALCOHOLISM AND FAILURE TO PAY FEDERAL OR STATE INCOME TAXES MS MYERS TOLD REPORTERS LAST FRIDAY THAT SHE WOULDN'T KNOW ABOUT ANY DETAILS INVOLVING INDIVIDUAL CASES AND SAYS SHE DOESN'T KNOW IF ANY PASSES HAVE BEEN PULLED BY THE SECRET SERVICE BUT THEN REINSTATED ON ORDERS FROM THE WHITE HOUSE COUNSEL'S OFFICE COMPOUNDING THE PROBLEM A FORMER CLINTON WHITE HOUSE AIDE TOLD US THAT SEVERAL THREE OR SIXMONTH TEMPORARY WHITE HOUSE PASSES THAT ARE ISSUED IN LIEU OF A PERMANENT PASS HAVE BEEN EXTENDED WITH NO QUESTIONS ASKED PAPERWORK IS SAID TO BE PILING UP ON THE DESK OF ASSOCIATE WHITE HOUSE COUNSEL WILLIAM KENNEDY III THE FORMER ROSE LAW FIRM PARTNER AND THE DECISIONMAKER ON WHITE HOUSE PASSES AND CLEARANCES CONGRESSMAN WOLF SAYS HE HAS RECEIVED ZERO COOPERATION FROM THE WHITE HOUSE IN FINDING OUT HOW MANY TEMPORARY PASSES EXIST AND HOW MANY ARE HELD BY VISITING FOBS LAST OCTOBER CHIEF OF STAFF MACK MCLARTY WROTE HIM TO SAY THAT IDENTITIES OF HOLDERS OF PASSES TO THE WHITE HOUSE ARE CONFIDENTIAL LAST MONTH MR MCLARTY WROTE REP WOLF AGAIN TO ASSURE HIM THAT SECURITY CLEARANCES ARE BEING HANDLED IN A TIMELY MANNER AND IN ACCORDANCE WITH THE PROCEDURES OF PREVIOUS ADMINISTRATIONS BUT MR LARSEN AND OTHER FORMER WHITE HOUSE STAFFERS SAY THAT PREVIOUS ADMINISTRATIONS WOULD NOT HAVE STONEWALLED MEMBERS OF CONGRESS OVER WHO HOLDS A WHITE HOUSE PASS JOHN SCHMITZ WAS DEPUTY WHITE HOUSE COUNSEL DURING THE BUSH ADMINISTRATION WHICH WAS A FIERCE DEFENDER OF PRESIDENTIAL AUTHORITY IF A MEMBER OF CONGRESS ON AN OVERSIGHT COMMITTEE WANTED THAT INFORMATION WE WOULD HAVE GIVEN A PERSONAL ORAL BRIEFING TO PRESERVE CONFIDENTIALITY HE TOLD US REP WOLF SPECULATES THAT THE WHITE HOUSE MAY BE STONEWALLING HIM BECAUSE IT'S UNWILLING TO REIN IN THE MANY FOBS WHO DON'T WORK FOR THE GOVERNMENT YET HAVE FREE ACCESS TO THE WHITE HOUSE ON MONDAY MR WOLF WROTE TO LLOYD CUTLER THE INTERIM WHITE HOUSE COUNSEL ASKING FOR HIS HELP ON THE MATTER THIS WAS AFTER THE WHITE HOUSE PASS ISSUE WAS RAISED WITH MR CUTLER ON MEET THE PRESS THE DAY BEFORE THE FIRST TIME I HEARD ABOUT THIS I FELT VERY STRONGLY THAT THERE'S NO JUSTIFICATION HE SAID NOW THAT I'VE STARTED TO FILL OUT MY OWN FORM I CAN SEE THEIR PROBLEM BUT YES THAT WILL BE TAKEN CARE OF REP WOLF DESERVED SOME SORT OF CREDIBLE ANSWER TO HIS QUESTIONS BUT PROVIDING SOMETHING THAT'S ALWAYS SHORT OF THAT SEEMS TO BE STANDARD OPERATING PROCEDURE WHETHER THE QUESTIONS ARE ABOUT WHITE HOUSE PASSES OR WHITEWATER THEN THEY COMPLAIN THAT THE PRESS IS ENGAGING IN SPECULATION 9403160047 940316 INTERNATIONAL BRIEF WILLIAMS HOLDINGS PLC CONGLOMERATE POSTS DECLINE IN ITS PRETAX PROFIT FOR 1993 WILLIAMS HOLDINGS PLC A LONDONBASED INDUSTRIAL CONGLOMERATE REPORTED YESTERDAY THAT PRETAX PROFIT FOR 1993 DECLINED SLIGHTLY AFTER TAKING INTO ACCOUNT A LOSS FROM DISPOSAL OF ITS ENGINEERING BUSINESS IN DECEMBER ON THE OPERATING LEVEL PROFIT ROSE 13 TO 1703 MILLION INCLUDED IN WILLIAMS PRETAX RESULTS IS A 171 MILLION LOSS ON THE DISPOSAL OF ITS ENGINEERING BUSINESS THIS INCLUDES A PREVIOUS WRITEOFF TO RESERVES FOR GOODWILL OF 174 MILLION WILLIAMS SAID IT DECIDED TO INCREASE ITS DIVIDEND TO KEEP UP WITH BRITISH INFLATION BUT NOTED THAT THE 2 RISE ISN'T COMMENSURATE WITH THE UNDERLYING EARNINGS GROWTH AS THE COMPANY IS AIMING TO REBUILD ITS DIVIDEND RESERVES 9403160046 940316 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 NEAR CL OSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE DOW JONES TELERATE INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 352 30 TO 44 DAYS 355 45 TO 59 DAYS 367 60 TO 69 DAYS 370 70 TO 89 DAYS 377 90 TO 119 DAYS 382 120 TO 149 DAYS 385 150 TO 179 DAYS 397 180 TO 209 DAYS 4 210 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 362 30 DAYS 375 60 DAYS 385 90 DAYS CERTIFICATES OF DEPOSIT 294 ONE MONTH 301 TWO MONTHS 313 THREE MONTHS 341 SIX MONTHS 369 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 401 SIX MONTHS BANKERS ACCEPTANCES 347 30 DAYS 359 60 DAYS 370 90 DAYS 383 120 DAYS 388 150 DAYS 392 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 9/16 3 7/16 ONE MONTH 3 3/4 3 5/8 TWO MONTHS 3 7/8 3 3/4 THREE MONTHS 4 3 7/8 FOUR MONTHS 4 1/16 3 15/16 FIVE MONTHS 4 1/8 4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 9/16 ONE MONTH 3 7/8 THREE MONTHS 4 1/8 SIX MONTHS 4 5/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 550 GERMANY 584 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 772 60 DAYS 777 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 767 60 DAYS 776 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 575 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE DOW JONES TELERATE INC MERRILL LYNCH READY ASSETS TRUST 279 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9403160045 940316 BEAR HUG SHEVARDNADZE WRESTLES RUSSIA BY AMITY SHLAES NEW YORK WHAT'S AN EXCOMMUNIST TO DO SOME DAYS GET SO BAD THEY MAKE A FELLOW LONG FOR THE OLD COLD WAR THURSDAY SEEMED LIKE ONE OF THOSE DAYS FOR EDUARD SHEVARDNADZE THE GEORGIAN HEAD OF STATE HAD COME TO THE US EARLIER IN THE WEEK FOR HELP IN ENDING HIS HOMELAND'S FRATRICIDE NOW ALL HE COULD TAKE HOME WERE PROMISES OF HUMANITARIAN AID AND SOME WORK TO ORGANIZE PEACEKEEPERS AT THE UNITED NATIONS HE HAD HAD A SHOT AT AN OLDFASHIONED SUPERPOWERSTYLE PRESS CONFERENCE WITH BILL CLINTON THEN REPORTERS OBSESSED WITH WHITEWATER HOGGED THE LIMELIGHT NOW HE AND HIS ENTOURAGE HOPED TO DEPART THE NEW YORK HELMSLEY HOTEL BUT REPORTS WERE COMING IN THAT THE CREW SEEMED TO HAVE MISPLACED THE PLANE MR SHEVARDNADZE FORMER FOREIGN MINISTER OF THE FORMERLY EXISTENT SOVIET UNION IS THE MAN WHO PENNED HUNDREDS OF COMMUNIQUES AND REDREW THE MAP OF CENTRAL EUROPE THAT'S NOT HELPING HIM THOUGH TO CALM BLOODY ABKHAZIA A GEORGIAN REGION WITH A POPULATION ONESIXTH THAT OF URBAN BERLIN ASKED TO COMPARE GEORGIA'S CHALLENGES WITH THOSE OF UNIFYING GERMANY THE ERSTWHILE DIPLOMAT TALKS AROUND THE QUESTION THEN HE SAYS IT IS MORE DIFFICULT TO SEE HOW MUCH MORE DIFFICULT IT HELPS TO SPEND A MORNING IN THE HELMSLEY'S HALLS WITH MR SHEVARDNADZE AND THE HOPEFUL WORRIED GEORGIANS IN HIS COMPANY THE WHITEHAIRED DIPLOMAT TAKES A SEAT AT A TABLE IN HIS SUITE AND DRAWS INVISIBLE CIRCLES IN THE AIR WHILE DESCRIBING HIS TRANSFORMATION FROM STATESMAN TO WARRIOR GEORGIA HE SAYS IS LIKE BOILING PITCH WHEN HE RETURNED TO TBILISI FROM DIPLOMATIC MOSCOW I DIVED INTO IT HE ISN'T EXAGGERATING IN COMMUNIST DAYS ROCKY GEORGIA WAS MOSCOW'S MEXICO A SUNNY VACATIONLAND WHOSE TOMATO SHIPMENTS WERE OFTEN THE ONLY THING THAT STOOD BETWEEN MUSCOVITES AND SCURVY POSTSOVIET MOSCOW CONTINUED TO MEDDLE IN GEORGIA BY ALL ACCOUNTS CONTRIBUTING TO THE CONVERSION OF WHAT USED TO BE A COUNTRY INTO THREE OR MORE DUSTY WAR ZONES THE ABKHAZ CONFLICT ALONE HAS KILLED 3000 AND CREATED 300000 REFUGEES TO SAVE GEORGIA MR SHEVARDNADZE HAS ALTERNATELY DEFIED AND CAVED TO MOSCOW HE HAS FACED DOWN GUNFIRE AND LED BESIEGED TOWNS A LONG AND BRAVE STEP FROM THE CORRIDORS OF DIPLOMACY HE HAS EVEN ALLIED HIMSELF WITH A WARLORD JABA IOSELIANI FACED WITH A ROLLING TV CAMERA THE GEORGIAN LEADER MAKES THE BEST PITCH HE CAN TO AMERICAN BUSINESS IF YOU COME TO GEORGIA YOU WILL SEE HOW BEAUTIFUL AND HOW PROMISING IT IS IN TERMS OF INVESTMENT AND THE PEOPLE ARE PREPARED TO DO HARD WORK AND BUSINESS HAS ALREADY STARTED COCACOLA IS THERE AND I WILL BET THE COCACOLA IS EVEN TASTIER IN GEORGIA THAN ELSEWHERE TRUE ALL OF IT BUT SO IS A LACONIC DESCRIPTION OF PRECONDITIONS FOR INVESTMENT OFFERED BY ONE OF THE SMOKING GEORGIAN AIDES LINING THE HELMSLEY'S 40TH FLOOR ABSENCE OF GUNFIRE JUST TWO DAYS EARLIER PRESIDENT CLINTON PROMISED HE'D TRY TO ROUND UP UN SECURITY COUNCIL MEMBERS TO HELP ORGANIZE A PEACEKEEPING FORCE IN GEORGIA MR CLINTON IS ALSO WORKING ON GETTING 70 MILLION TO FEED HUNGRY GEORGIANS HE HASN'T HOWEVER PROMISED GEORGIANS WHAT SOME REPORT THEY HOPED FOR THAT 25 OF THE PEACEKEEPERS WOULD BE AMERICANS BEFORE THE CAMERA MR SHEVARDNADZE DECLARES HIMSELF CONTENTED WITH HIS AMERICAN TRIP I AM FULLY AWARE OF WHAT THE US CAN DO AND WHAT IT CANNOT DO HE ARGUES THAT IT DOESN'T MATTER WHICH NATIONALITY MAKES UP THE PEACEKEEPING FORCE A CONTINGENT IS A CONTINGENT ON THIS TRIP HE HAS EVEN ALLOWED THAT RUSSIANS COULD TAKE PART IN SOME KIND OF PEACEKEEPING EFFORT THE GEORGIAN LEADER'S STRENGTH IS THAT HE IS SUPPOSED TO HAVE GOOD CONTACTS IN MOSCOW AFTER ALL HE USED TO WORK THERE THIS VERY MORNING AT THE HELMSLEY HE KEEPS A GROUP OF REPORTERS WAITING WHILE HE CLOSETS HIMSELF WITH YULI VORONTSOV HIS FORMER SUBORDINATE AND THE CURRENT RUSSIAN AMBASSADOR HERE TRAPPED IN AN ELEVATOR BY A REPORTER THE AMBASSADOR DROPS A SOUNDBITE THAT RUSSIA AND GEORGIA HAVE BEEN HELPING EACH OTHER FOR CENTURIES ASKED WHETHER RUSSIA APPEARS TO BE RETURNING TO SOME FORM OF THE BREZHNEV DOCTRINE MR SHEVARDNADZE BRISTLES I WANT TO ASSUAGE FEARS THIS IS IMPOSSIBLE YET RUSSIANS WERE ALL OVER THE ABKHAZIAN CONFLICT WHERE DO YOU THINK THE ABKHAZIANS GOT PLANES ASKS A CYNICAL MEMBER OF THE ENTOURAGE LIKE LEONID KRAVCHUK THE UKRAINIAN LEADER WHO PRECEDED HIM THIS WINTER ON A US TRIP MR SHEVARDNADZE IS FACED WITH A RUSSIA THAT IS MOVING TOWARD CLAIMING CONTROL OF WHAT RUSSIAN FOREIGN MINISTER ANDREI KOZYREV HAS CALLED THE NEAR ABROAD RUSSIA DANGEROUS MUTTERS A GEORGIAN REPORTER AND DISCONSOLATELY KICKS A GAP BAG THE BOOTY OF A QUICK SHOPPING TRIP FOR NOW ABKHAZIAN SEPARATISTS AND PERHAPS SOME RUSSIAN FRIENDS STILL CONTROL THEIR TERRITORY INCLUDING THE CITY OF SUKHUMI THE ABKHAZIAN SEPARATISTS STARTED THIS WAR THE UN'S GEORGIAN AMBASSADOR SAYS LATER OVER THE PHONE AND THEY DON'T WANT TO END IT AND GEORGIANS CAN'T EXPECT MUCH MORE FROM THE PREOCCUPIED CLINTON ADMINISTRATION ON THIS MORNING MR SHEVARDNADZE AND THE GEORGIANS ARE PREOCCUPIED WITH MORE IMMEDIATE PROBLEMS THEIR CREW IS RECONNECTING WITH THEIR PLANE AND THEY ARE HAPPY THEY HAVE RECEIVED A CASH PROMISE TO STAVE OFF FAMINE YET BEFORE HE DEPARTS MR SHEVARDNADZE WARNS OF RUSSIAN TYRANNY'S DANGER FOR THIS NOT TO HAPPEN THE WEST MUST CONCENTRATE ON THE DEMOCRATIC BELT OF COUNTRIES SUCH AS HIS SURROUNDING RUSSIA HERE AT THE HELMSLEY THERE WERE FEW SIGNS OF SUCH CONCENTRATION MISS SHLAES IS EDITORIAL FEATURES EDITOR OF THE WALL STREET JOURNAL 9403160044 940316 BUSINESS BRIEF REGAL CINEMAS INC COMPANY AGREES TO ACQUIRE SOUTHEASTERN THEATER CHAIN REGAL CINEMAS INC SAID IT REACHED A DEFINITIVE AGREEMENT TO ACQUIRE A SOUTH CAROLINABASED CHAIN OF THEATERS FOR ABOUT 60 MILLION IN STOCK PLUS THE ASSUMPTION OF ABOUT 19 MILLION IN DEBT THE CHAIN CLOSELY HELD LITCHFIELD THEATRES LTD IN PAWLEYS ISLAND SC HAS 24 THEATERS WITH 172 SCREENS IN SIX STATES PRIMARILY IN THE SOUTHEAST REVENUE IN 1993 ACCORDING TO REGAL TOTALED MORE THAN 40 MILLION KNOXVILLE TENNBASED REGAL WHICH OPERATES 48 MULTISCREEN THEATERS IN 10 STATES SAID IT WILL ISSUE 25 MILLION SHARES OF STOCK TO LITCHFIELD IN TRADING ON THE NASDAQ STOCK MARKET REGAL CLOSED AT 24 A SHARE DOWN 25 CENTS REGAL SAID IT EXPECTS TO CLOSE THE TRANSACTION WHICH WILL BE ACCOUNTED FOR AS A POOLING OF INTERESTS IN JUNE OR JULY 9403160043 940316 PRICING HEALTH CARE THE MARKET IS ALREADY DOING IT BY DAVID LAWRENCE WHETHER ONE AGREES WITH THE UNDERPINNINGS OR SCOPE OF THE HEALTH CARE REFORM PROPOSALS COMING OUT OF WASHINGTON AT LEAST TWO FACTS REMAIN TO THE DISMAY OF MANAGED CARE CRITICS FIRST MANAGED CARE ALREADY HAS FUELED THE ENGINE OF REFORM IN THE MARKETPLACE AND SECOND IT HAS PROVED ITS ABILITY TO DELIVER QUALITY HEALTH CARE WHILE CONTAINING COSTS THE GREATEST VALUE OF MANAGED CARE PARTICULARLY HMOS LIES IN ITS APPROACH TO ORGANIZING AND COORDINATING CARE THIS APPROACH SO GREATLY MISUNDERSTOOD BY THE CRITICS INVOLVES CHANGING THE ECONOMICS AND DELIVERY OF HEALTH CARE SO IT IS POSSIBLE TO PROVIDE THE RIGHT CARE AT THE RIGHT TIME AND PLACE IN A GROUP PRACTICE HMO FOR EXAMPLE THE DOCTOR CAN TRULY BE A PATIENT ADVOCATE BECAUSE INDIVIDUAL CLINICAL DECISIONS DO NOT DIRECTLY AFFECT HIS OR HER INCOME KNOWING PATIENTS WILL NOT BE FINANCIALLY BURDENED ALSO FREES THE PHYSICIAN TO BASE CLINICAL DECISIONS ON WHAT IS MEDICALLY APPROPRIATE AND TO PROVIDE CARE IN THE SETTING THAT BEST MEETS THE PATIENT'S NEEDS AN HMO'S FINANCIAL INCENTIVES AND RATIONAL STRUCTURE ENSURE QUALITY AND CONTAIN COSTS CRITICS OF MANAGED CARE RAISE THE SPECTER OF MEDICAL DECISIONS MADE BY A BUREAUCRACY CONCERNED ONLY WITH THE HEALTH OF ITS BOTTOM LINE ON THE CONTRARY GROUP PRACTICE HMOS CLOSELY KNIT GROUPS OF PHYSICIAN COLLEAGUES WHO PRACTICE TOGETHER COORDINATE CARE AND LEARN FROM ONE ANOTHER HAVE BEEN WORKING TO REFORM HEALTH CARE FOR SEVERAL DECADES BY PUTTING THE PATIENT AT THE CENTER OF ALL DECISIONS MAKING HEALTH THE BOTTOM LINE HOW DOES THE THEORY TRANSLATE INTO PRACTICE EVIDENCE INDICATES THAT ORGANIZING AND COORDINATING CARE TO KEEP PEOPLE WELL IMPROVES QUALITY AND CONTAINS COST HERE ARE A FEW EXAMPLES FROM MY OWN ORGANIZATION KAISER PERMANENTE PHYSICIANS HEALTH EDUCATORS AND NURSES HAVE JOINED TOGETHER TO CREATE A SUPPORT SYSTEM THAT HELPS FAMILIES UNDERSTAND PREDICT AND CONTROL A CHILD'S ASTHMA WHILE THE NATIONAL AVERAGE FOR REPEAT HOSPITALIZATIONS FOR CHILDREN SUFFERING FROM ASTHMA IS 20 TO 30 AT SEVERAL KAISER PERMANENTE FACILITIES THIS FIGURE IS NOW DOWN TO JUST 5 HOSPITAL DAYS FOR ASTHMA TREATMENT ARE DOWN BY 70 OVER A TWOYEAR PERIOD THE FIRST STEP IN REDUCING HEART DISEASE AND STROKE IS IDENTIFYING PEOPLE AT RISK IN THE PAST FIVE YEARS WE SCREENED 931 OF OUR AT RISK NORTHERN CALIFORNIA MEMBERS FOR HYPERTENSION THE EFFECTIVENESS OF OUR TREATMENT FOLLOWING SCREENING IS DEMONSTRATED BY THE LOW NUMBER OF OUR PATIENTS WHO SUFFER STROKES RELATIVE TO STATISTICS FROM OTHER CALIFORNIA HOSPITALS 1257 PER 100000 PEOPLE COMPARED WITH 1641 STATEWIDE OUR PERFORMANCE IN NORTHERN CALIFORNIA IN IMMUNIZATION AGAINST COMMON CHILDHOOD ILLNESSES MEASLES MUMPS DIPHTHERIA IS WELL ABOVE THE STATE AVERAGE IN THE CASE OF HEMOPHILUS INFLUENZA TYPE B WHICH CAN CAUSE BACTERIAL MENINGITIS WE IMMUNIZE CHILDREN AT A RATE MORE THAN TWICE THE STATE AVERAGE STATEWIDE ABOUT 70 OF CHILDREN UNDER AGE 2 HAVE BEEN INOCULATED AGAINST MEASLES MUMPS AND RUBELLA COMPARED WITH 938 OF KAISER PERMANENTE MEMBERS OUR PREMATUREBIRTH PREVENTION PROGRAMS INCLUDE FREQUENT PRENATAL VISITS NUTRITION COUNSELING AND HAVING A NURSE TELEPHONE THE MOTHER FREQUENTLY TO ASSESS WARNING SIGNS OF PREMATURE LABOR BY PUTTING THE PATIENT AT THE CENTER OF CARE WE HAVE PREVENTED ONE IN FOUR PREMATURE DELIVERIES NEONATAL INTENSIVE CARE DAYS HAVE BEEN REDUCED 25 DAYS THAT COST MORE THAN 10 TIMES THAT OF A FULLTERM NEWBORN NURSERY THE SAVINGS IN HOSPITAL COSTS ALONE TRANSLATE INTO MORE THAN 1 MILLION A YEAR IN OUR WASHINGTON DC REGION THESE EXAMPLES ILLUSTRATE WHAT HMO PHYSICIANS CAN DO FOR THEIR PATIENTS BUT DO THEY CONTRIBUTE TO A MORE EFFICIENT MARKETPLACE A NEW KPMG PEAT MARWICK STUDY FOUND THAT HMO PREMIUMS INCREASED 40 LESS FROM 1988 TO 1993 THAN PREMIUMS FOR FEEFORSERVICE PLANS AND 32 LESS THAN PREFERREDPROVIDER ORGANIZATIONS SAVINGS WERE ACHIEVED WHILE PROVIDING MORE PREVENTIVE SERVICES LOWER OUTOFPOCKET COSTS AND GENERALLY MORE COMPREHENSIVE BENEFITS ACCORDING TO THE LATEST FOSTER HIGGINS SURVEY OF 1993 HEALTH BENEFIT COSTS TRADITIONAL INDEMNITY PLANS REMAINED THE MOST EXPENSIVE PLANS AVERAGING 3500 PER EMPLOYEE NATIONALLY WHILE HMO PLANS AVERAGED ONLY 3276 IN CALIFORNIA WHERE HMO PENETRATION IS HIGHEST INDEMNITY PLAN COSTS INCREASED 84 TO 3743 PER EMPLOYEE AND HMO COSTS INCREASED ONLY 49 TO 2926 PER EMPLOYEE GROWING NUMBERS ARE CHOOSING HMOS AS AN ALTERNATIVE TO FEEFORSERVICE MEDICINE 45 MILLION AMERICANS LAST YEAR ALONE A NEW SURVEY BY KPMG PEAT MARWICK FOUND THAT 74 OF MID AND LARGESIZED EMPLOYERS ARE OFFERING HMOS EMPLOYEES ENROLLED IN HMOS OFFERED BY THEIR EMPLOYERS ARE AS SATISFIED WITH THEIR PLANS AS ARE MEMBERS OF TRADITIONAL FEEFORSERVICE PLANS ACCORDING TO POLLS BY GALLUP AND NATIONAL RESEARCH CORP SUCCESSFUL MARKETBASED REFORM SHOULD NOT BE MEASURED BY COST SAVINGS AND INCREASED ENROLLMENT IN MANAGEDCARE ORGANIZATIONS ALONE HOWEVER LEGITIMATE REFORM MUST PROVIDE COVERAGE AND ACCESS FOR THE UNINSURED OR UNDERINSURED GUARANTEE THE QUALITY OF MEDICAL CARE PROVIDE A BROADER CHOICE OF HEALTH PLANS INCLUDING FREECHOICEOFPHYSICIAN PLANS FOR INDIVIDUALS AND EQUITABLY SPREAD THE COST OF FINANCING AMERICA'S HEALTH CARE BILL INDEED SOME OF THESE REFORMS ARE ALREADY OCCURRING AT THE STATE LEVEL AND THROUGH VOLUNTARY ACTIONS BY HEALTH PLANS MORE REFORM IS NEEDED HOWEVER IF WE DO NOT IMPROVE THE HEALTH STATUS OF ALL AMERICANS AND IF WE DO NOT CORRECT THE UNDERLYING STRUCTURAL FLAWS AND SKEWED INCENTIVES OF TRADITIONAL INSURANCE THAT PREVENT OUR HEALTH CARE SYSTEM FROM SERVING EVERYONE REFORM ULTIMATELY WILL FAIL IT IS PRECISELY THESE PROBLEMS THAT ORGANIZED COORDINATED CARE APPROACHES LIKE KAISER PERMANENTE'S HAVE ADDRESSED DOES OUR MODEL REPRESENT A CUREALL A REFORM PANACEA WE WOULD NEVER MAKE SUCH A CLAIM WE BELIEVE PEOPLE SHOULD HAVE CHOICES MORE AND MORE AMERICANS ARE TURNING TO HMOS BECAUSE THE STATUS QUO CLEARLY IS NOT WORKING HEALTH CARE LARGELY REMAINS A COTTAGE INDUSTRY MADE UP OF THOUSANDS OF INDEPENDENT ENTITIES MANY WHO HAVE INSURANCE COVERAGE FIND IT CONFUSING AND UNCERTAIN WHEN FUTURE GENERATIONS LOOK AT THE ACCOMPLISHMENTS OF HEALTH REFORM I HOPE THEY DO NOT SEE THAT WE PERPETUATED A FRAGMENTED INEFFICIENT UNFAIR SYSTEM THAT LEAVES MANY WITHOUT THE HEALTH CARE THEY NEED DR LAWRENCE A PHYSICIAN IS CEO OF KAISER FOUNDATION HEALTH PLAN INC AND KAISER FOUNDATION HOSPITALS 9403160042 940316 INTERSTATE BANKING NOW BY GREG WILSON CYNICS ARGUE THAT THE INTERSTATE BANKING BILLS NOW WENDING THEIR WAY THROUGH CONGRESS ARE TRIVIAL BECAUSE THEY ONLY BELATEDLY RECOGNIZE REALITY AFTER ALL BANK OF AMERICA NATIONSBANK BANC ONE CITICORP CHEMICAL FIRST INTERSTATE AND MANY OTHER BANK HOLDING COMPANIES ALREADY HAVE MAJOR SUBSIDIARIES IN MULTIPLE STATES MANY OF THESE INSTITUTIONS ARE ON THE VERGE OF BECOMING TRULY NATIONAL ORGANIZATIONS WITHOUT ANY LEGISLATIVE HELP INDEED BANKS HAVE ALREADY SEEN SOME OF THE ECONOMIC EFFICIENCIES OF NATIONWIDE BANKING DESPITE THE LACK OF REGULATORY REFORM EMPLOYMENT BY US DEPOSITORY INSTITUTIONS OVER THE PAST 10 YEARS HAS DECLINED 25 TO ABOUT 14 MILLION FROM 18 MILLION AS A RESULT BANK PRODUCTIVITY AS MEASURED BY ASSETS PER EMPLOYEE HAS NEARLY DOUBLED TO 26 MILLION PER EMPLOYEE FROM 14 MILLION PER EMPLOYEE MUCH OF THESE GAINS HAVE RESULTED FROM CONSOLIDATING BANKS SAVINGS AND LOANS AND SAVINGS BANKS THROUGH INTERSTATE ACQUISITIONS THAT ARE CURRENTLY ALLOWED SO WHY BOTHER LEGISLATING WHAT IS ALREADY COMMON PRACTICE BECAUSE WHAT WE'VE SEEN SO FAR IS JUST THE START OF THE SAVINGS THAT WILL COME FROM REAL REFORM A RECENT MCKINSEY & CO STUDY FOR FOUR WELLMANAGED REGIONAL BANKS FOUND THAT THE ANNUAL COSTS OF INTERSTATE BANKING UNDER TODAY'S CUMBERSOME REGULATORY STRUCTURE CAN RANGE FROM 05 TO ALMOST 1 OF A COMPANY'S NONINTEREST EXPENSES ELIMINATING THESE COSTS UNDER A NATIONWIDE BANKING SCHEME COULD SAVE MULTISTATE BANKS ANYWHERE FROM 2 BILLION TO 4 BILLION OVER FIVE YEARS AND THESE SAVINGS IN TURN ARE DWARFED BY THOSE THAT WILL COME FROM THE NATIONWIDE CONSOLIDATION OF OPERATIONS CUSTOMER SERVICE COULD ALSO IMPROVE DRAMATICALLY IF BOTH HOUSES OF CONGRESS FOLLOW THE LEAD OF THEIR BANKING COMMITTEES AND PASS THE INTERSTATE BANKING LEGISLATION SEN CHRISTOPHER DODD D CONN HAS NOTED THAT 60 MILLION AMERICANS LIVE IN METROPOLITAN AREAS THAT CROSS STATE LINES ANOTHER FOUR MILLION COMMUTE EACH DAY ACROSS STATE LINES THEY AND COUNTLESS AMERICANS WHO TRAVEL DAILY ARE DEPRIVED OF SERVICE BY TRULY NATIONAL BANKS BECAUSE OF RESTRICTIVE LAWS WITH NO COUNTERPART IN THE REST OF THE INDUSTRIALIZED WORLD ENACTING THE INTERSTATE BANKING BILL WILL NOT ONLY MAKE BASIC FINANCIAL SERVICES MORE CONVENIENT AND MORE PRICE COMPETITIVE BUT WILL ALSO MAKE A BROADER ARRAY OF SERVICES FROM NEW ANNUITIES AND MUTUAL FUNDS TO AN EXPANDED LOAN MENU AVAILABLE TO CUSTOMERS MORE BROADLY NATIONWIDE BANKING IS GOOD FOR THE US ECONOMY IT WILL FACILITATE THE FREE FLOW OF CAPITAL TO THE HIGHEST VALUE RETURN THE MOST EFFICIENT USE OF RESOURCES AND ENCOURAGE THE CREATION OF STRONG FINANCIALLY STABLE FINANCIAL SERVICE PROVIDERS ACROSS REGIONS ANY FINAL LAW ALSO MUST PROVIDE FOR FULL NATIONAL TREATMENT FOR FOREIGN BANKS THAT SERVE US CUSTOMERS CONSUMERS AND BUSINESSES IN TEXAS AND NEW ENGLAND CAN TELL YOU WHAT LOCAL ECONOMIC DOWNTURNS MEAN FOR THE CONDUCT OF THEIR FINANCIAL AFFAIRS GEOGRAPHICALLY CONSTRAINED BANKS CAN FAIL AND BASIC FINANCIAL SERVICES CAN BECOME DISRUPTED WITH NEGATIVE CONSEQUENCES FOR THE REAL ECONOMY THESE CONDITIONS ARE ONLY EXACERBATED BY THE GREAT DEPRESSIONERA RESTRICTIONS ON INTERSTATE BANKING WHICH PREVENT STRONG DIVERSIFIED BANKS FROM LENDING THEIR CAPITAL STRENGTH ACROSS REGIONS IN TIMES OF FINANCIAL NEED A RECENT STUDY BY THE FEDERAL RESERVE BANK OF BOSTON SHOWS THE UNFORTUNATE RESULTS OF NOT HAVING HAD FULL INTERSTATE BANKING IN NEW ENGLAND ACCORDING TO BOSTON FED PRESIDENT DICK SYRON THE ECONOMIC SHOCK TO NEW ENGLAND IN RECENT YEARS WOULD HAVE BEEN LESS SEVERE IF REGIONAL BANKS HAD BEEN BETTER DIVERSIFIED ACROSS STATE LINES MOREOVER ALL OF THE TOP FEDERAL BANKING REGULATORS HAVE TESTIFIED REPEATEDLY THAT NATIONWIDE BANKING REFORM WOULD HELP TO DIVERSIFY INSTITUTIONS GEOGRAPHICALLY AND CONSEQUENTLY HELP TO LOWER THEIR INDIVIDUAL RISK PROFILES FORMER FEDERAL DEPOSIT INSURANCE CORP CHAIRMAN BILL SEIDMAN VIEWS NATIONWIDE BRANCHING AND BANKING REFORM AS A GOOD WAY TO REDUCE THE RISK OF POTENTIAL LOSS TO THE FDIC AND AMERICAN TAXPAYERS THE BENEFITS WILL BE ESPECIALLY GREAT FOR BUSINESS OCCIDENTAL PETROLEUM CO A FORTUNE 100 CORPORATION HAS TESTIFIED BEFORE CONGRESS THAT IT EXPECTS TO SAVE 3 TO 4 ON ITS TOTAL BANKING COSTS BECAUSE OF NATIONWIDE BRANCHING BENEFITS THE TREASURIES OF ALL US COMPANIES WILL BENEFIT FROM A REDUCTION IN FEES THAT WILL COME FROM REBIDDING BUSINESS BASED ON A NATIONWIDE OR EXPANDED REGIONAL BASIS AND REDUCING THE NUMBER OF BANKING RELATIONSHIPS WILL NATIONWIDE BANKING PULL DEPOSITS OUT OF SMALL RURAL COMMUNITIES WITH A GIANT SUCKING SOUND ABSOLUTELY NOT IF CURRENT TRENDS ARE ANY INDICATION THE 182 MULTISTATE BANK HOLDING COMPANIES WHICH EMPLOY MORE THAN 900000 PEOPLE MAKE 70 OF ALL LOANS TODAY THESE COMPANIES HAVE A HIGHER LOANTODEPOSIT RATIO THAN THEIR NONINTERSTATE BRETHREN INTERSTATE BANKS LEND 84 CENTS FOR EVERY DOLLAR ON DEPOSIT WHILE NONINTERSTATE BANKS LEND ONLY 67 CENTS ON THE DOLLAR THE EXPERIENCE OF STATES LIKE CALIFORNIA AND NEW YORK THAT ALREADY ALLOW INTERSTATE BANKING CONFIRMS THAT LARGER FINANCIAL INSTITUTIONS DO NOT NEGLECT SMALL COMMUNITIES OR DRIVE LOCAL BANKS OUT OF BUSINESS FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN HAS SUMMED UP THE BENEFITS OF INTERSTATE BANKING AUTHORIZATION OF INTERSTATE BANKING IS IN EFFECT A MORE EFFICIENT USE OF CAPITAL AND A CAPITALBUILDING STEP BY REDUCING BANKS COSTS WHAT INTERSTATE PROMISES IS WIDER CONSUMER CHOICES AT BETTER PRICES AND FOR OUR BANKING SYSTEM INCREASED COMPETITION AND EFFICIENCY THE ELIMINATION OF UNNECESSARY COSTS ASSOCIATED WITH THE DELIVERY OF FINANCIAL SERVICES AND RISK REDUCTION THROUGH DIVERSIFICATION WHAT IS NEEDED NOW IS LEADERSHIP FROM PRESIDENT CLINTON SENATE MAJORITY LEADER GEORGE MITCHELL AND HOUSE SPEAKER TOM FOLEY TO ENSURE A FAST TRACK FOR THE BANKING BILLS AND PASSAGE BY MEMORIAL DAY THE CONGRESSIONAL LEADERSHIP SHOULD ALSO ENCOURAGE MEMBERS TO WITHHOLD ALL EXTRANEOUS AMENDMENTS IN AN EFFORT TO ENSURE PASSAGE OF THIS PROCONSUMER LEGISLATION SUCH AMENDMENTS WERE SHOT DOWN IN THE HOUSE AND SENATE BANKING COMMITTEES BUT VARIOUS SPECIAL INTERESTS ARE LIKELY TO TRY AGAIN WHEN THE BILLS COME TO THE FLOOR IT WOULD BE A SUPREME IRONY IF EXTRANEOUS PROVISIONS CAUSED THE DEFEAT OF A TRULY MARKETDRIVEN CONSUMERCONVENIENCE BILL BUT THERE ARE SOME USEFUL AMENDMENTS THAT SHOULD BE ADDED AS CURRENTLY DRAWN BOTH BILLS DELAY THEIR FULL BENEFITS THROUGH SOME CUMBERSOME PROVISIONS ONE SECTION FOR EXAMPLE ALLOWS STATES TO OPT OUT OF INTERSTATE BANKING AFTER TWO TO THREE YEARS ANOTHER FORCES AN 18MONTH WAIT FOR BANKS TO CONSOLIDATE BRANCH NETWORKS THESE MEASURES MAKE NO ECONOMIC SENSE THEY OUGHT TO BE DELETED TODAY A RECENT STUDY BY MCKINSEY'S GLOBAL INSTITUTE HAS SHOWN THAT US BANKS ARE NOW THE MOST PRODUCTIVE IN THE WORLD USING THE US AS A BENCHMARK UK BANKS ARE ONLY 64 AS PRODUCTIVE AND GERMAN BANKS ARE ONLY 68 AS PRODUCTIVE IN THE DELIVERY OF PAYMENT DEPOSIT AND CREDIT SERVICES WITH THE ADVENT OF TRUE NATIONWIDE BANKING THE US COULD LEAP EVEN FURTHER AHEAD MR WILSON IS A CONSULTANT IN THE WASHINGTON DC OFFICE OF MCKINSEY & CO 9403160041 940316 WHAT'S NEWS BUSINESS AND FINANCE DEMOCRATS ON A HOUSE WAYS AND MEANS PANEL UPHELD A CENTRAL PREMISE OF CLINTON'S HEALTHCARE INITIATIVE THAT ALL EMPLOYERS HELP BUY HEALTH INSURANCE FOR THEIR WORKERS THE MEASURE WOULD ABANDON OR STREAMLINE MAJOR PARTS OF CLINTON'S PROPOSAL AND ESTABLISH A GOVERNMENTRUN MEDICARELIKE PROGRAM FOR SMALL BUSINESSES AND LOWERINCOME WORKERS UNABLE TO GET PRIVATE COVERAGE JP MORGAN AND TWO OTHER BANKS ARE ORGANIZING A 11 BILLION SYNDICATED LOAN TO PETROLEOS MEXICANOS MARKING THE FIRST BIG INFUSION OF BANK CREDIT TO MEXICO IN YEARS THE LOAN IS A DELIBERATE MOVE BY MEXICO TO BRING BACK FOREIGN BANK CREDIT WHICH HAS BEEN ALMOST NONEXISTENT FOR 12 YEARS KEMPER CONTINUED TO CRITICIZE GE CAPITAL'S 22 BILLION TAKEOVER OFFER THE GE UNIT ALSO FACES A WRINKLE IN MUTUALFUND LAW THAT IN THE PAST HAS ALL BUT PROHIBITED HOSTILE TAKEOVERS OF MUTUALFUND ADVISERS BUT TAKEOVER EXPERTS SAID GE HAS THE UPPER HAND IN WHAT COULD BE A PROTRACTED BATTLE THE RISE IN HOSTILE TAKEOVER ACTIVITY STEMS IN PART FROM COURT DECISIONS IN THE PARAMOUNT BATTLE AS WELL AS CHEAP FINANCING AS A RESULT OF FALLING INTEREST RATES AND RISING STOCK PRICES INVESTORS PREDICT COMPANIES IN THE ENERGY PHARMACEUTICAL AND RETAILING SECTORS WILL BE THE NEXT TARGETS PRODUCER PRICES JUMPED 05 IN FEBRUARY THE RISE WAS MOSTLY DUE TO A 28 INCREASE IN ENERGY PRICES HOME HEATING FUEL PRICES ROSE 235 EXCLUDING THE FOOD AND ENERGY SECTORS PRICES ROSE A FAR SMALLER 01 A SLOWER PACE THAN JANUARY'S 04 RISE THE POSITIVE INFLATION REPORT SPARKED A RALLY IN BOND PRICES THE TREASURY'S BENCHMARK 30YEAR BOND JUMPED MORE THAN 7/8 OF A POINT DRIVING THE YIELD DOWN TO 687 THE DOW INDUSTRIALS LOST 1339 POINTS TO 384959 HOME BUILDERS IN CALIFORNIA ARE SEEING A RESURGENCE IN DEMAND AFTER A THREEYEAR SLUMP SIGNALING A PICKUP IN THE OVERALL CALIFORNIA ECONOMY ADOBE PLANS TO BUY ALDUS IN A 5158 MILLION STOCK SWAP A DEAL THAT UNITES THE COMPANIES CREDITED WITH INVENTING THE DESKTOPPUBLISHING INDUSTRY THE SON OF ODED ABOODI THE DEALMAKING ADVISER TO TIME WARNER IS THE SUBJECT OF CRIMINAL AND CIVIL INQUIRIES INTO INSIDER TRADING IN TIME'S STOCK THE WHITE HOUSE DROPPED A PLAN TO SELL QUOTA RIGHTS FOR TEXTILE IMPORTS TO PAY FOR THE WORLD TRADE PACT BECAUSE THE PLAN WOULD VIOLATE THE PACT SOME MUNICIPALITIES ARE MOVING TO GET BONDS LISTED FOR TRADING ON THE BIG BOARD IN THE WAKE OF THE FEDERAL GOVERNMENT'S PUSH TO MAKE CITIES AND TOWNS DISCLOSE MORE FINANCIAL DATA VIACOM ANNOUNCED A MANAGEMENT TEAM THAT WILL CONSOLIDATE THE ASSETS OF PARAMOUNT AND THOSE OF BLOCKBUSTER AFTER THE COMPLETION OF VIACOM'S SEPARATE MERGER WITH BLOCKBUSTER JAPAN'S TRADE SURPLUS WIDENED 33 IN FEBRUARY BUT ECONOMISTS SAID THE NEWS MAY NOT BE AS POLITICALLY TROUBLESOME FOR TOKYO AS IT SEEMS JAPAN'S SURPLUS WITH THE US SHRANK 09 THE FIRST NARROWING IN NINE MONTHS PRUDENTIAL SECURITIES' LONGTERM RATING OUTLOOK WAS KNOCKED DOWN BY S&P TO NEGATIVE FROM STABLE REFLECTING THE FIRM'S VULNERABILITY BONDS LEHMAN BROTHERS TREASURY INDEX 530781 UP 3742 COMMODITIES OIL 1483 A BARREL UP 34 CENTS DOW JONES FUTURES INDEX 14581 UP 053 SPOT INDEX 13264 UP 055 DOLLAR 10600 YEN OFF 010 16965 MARKS UP 00065 9403160039 940316 TEXAS JOURNAL ECONOMIC FOCUS HAS AMARILLO OVERPAID TO KEEP THE JETS FLYING BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL AMARILLO HAS LONG BEEN KNOWN AS A DOWNTOEARTH PLACE ENDOWED WITH THE SORT OF COMMON SENSE THAT COMES FROM BEING AT THE CENTER OF THE TEXAS BEEF AND MEATPACKING INDUSTRY BUT NOW SOME PEOPLE WONDER IF THE CITY IS EMBARKING ON A FLIGHT OF FANCY AT ISSUE IS THE AMARILLO ECONOMIC DEVELOPMENT CORP'S SURPRISE AGREEMENT TO PAY AMR CORP'S AMERICAN AIRLINES UNIT AS MUCH AS 1 MILLION IN TAXPAYER FUNDS TO MAINTAIN JET SERVICE BETWEEN AMARILLO AND DALLASFORT WORTH INTERNATIONAL AIRPORT INSTEAD OF LETTING AMERICAN PROCEED WITH ITS PLAN TO SWITCH TO TURBOPROPS PROPONENTS SAY THE ACCORD WHICH WAS RATIFIED YESTERDAY IN A 40 VOTE BY THE CITY COMMISSION IS AN ESSENTIAL PIECE OF AMARILLO'S ECONOMICDEVELOPMENT EFFORTS THEY ARGUE THAT BUSINESSES WON'T BE AS LIKELY TO EXPAND OR MOVE THERE WITHOUT THE PRESTIGE AND CONVENIENCE OF JET CONNECTIONS AND THEY MAINTAIN THAT AMARILLO'S SUBSIDY WON'T WIND UP COSTING NEARLY AS MUCH AS 1 MILLION BUT CRITICS INSIST AMARILLO IS JUST BUYING TROUBLE NOT ONLY WILL THE NEW ARRANGEMENT PROVIDE LITTLE ECONOMIC BENEFIT THEY ARGUE BUT IT WILL ACTUALLY LEAD TO A DETERIORATION IN AIR SERVICE BY ELIMINATING SOME SCHEDULED FLIGHTS MOREOVER FOES CONTEND THE FINANCIAL DRAIN WILL PROVE QUITE LARGE THAT IS CIVIC HUBRIS MORE THAN INTELLIGENCE SAYS MICHAEL J BOYD PRESIDENT OF AVIATION SYSTEMS RESEARCH CORP GOLDEN COLO AND A WELLKNOWN AVIATION ANALYST IF AMERICAN WERE MAKING ENOUGH MONEY WITH JETS IN THAT MARKET THEY WOULD HAVE KEPT THEM IN THERE AMARILLO ISN'T THE ONLY CITY TO BE CONFRONTING SUCH ISSUES AS AIRLINES REPLACE JETS WITH CHEAPERTOOPERATE COMMUTER PLANES IN SMALLER MARKETS THROUGHOUT THE NATION IN TEXAS ALONE AMERICAN LAST YEAR ELIMINATED JET SERVICE TO MIDLANDODESSA WHILE DELTA AIR LINES INC SWITCHED TO A REGIONAL AFFILIATE IN CORPUS CHRISTI LUBBOCK AND AMARILLO WHAT WAS UNUSUAL THOUGH WAS AMARILLO'S RESPONSE INFORMED IN FEBRUARY THAT AMERICAN WAS ELIMINATING ITS THREE DAILY JET FLIGHTS TO DFW AND REPLACING THEM WITH SMALLER TURBOPROPS OPERATED BY AMR'S AMERICAN EAGLE REGIONAL CARRIER CITY LEADERS CONCLUDED THE MOVE WOULD HIT BUSINESS HARD ALTHOUGH SOUTHWEST AIRLINES CO FLIES JETS BETWEEN AMARILLO AND DALLAS IT OPERATES OUT OF LOVE FIELD RATHER THAN DALLASFORT WORTH AND THEREFORE LACKS THE INTERNATIONAL CONNECTIONS THAT CITY LEADERS SO COVET WE HAVE SOME DIFFICULTY IN OUR RECRUITING ANYWAY BECAUSE WE'RE SEEN AS BEING KIND OF AN ISOLATED AREA WHEN YOU LOOK AT A MAP SAYS MICHAEL BOURN EXECUTIVE DIRECTOR OF THE AMARILLO ECONOMIC DEVELOPMENT CORP WHICH WAS SET UP TO ADMINISTER THE FUNDS GENERATED BY THE CITY'S HALFCENT ECONOMICDEVELOPMENT SALES TAX AFTER DISCARDING SOME MORE DRASTIC RESPONSES SUCH AS HAVING AMARILLO ESSENTIALLY START ITS OWN AIRLINE USING RENTED JETS OFFICIALS HIT ON WHAT THEY BELIEVE WILL BE A MUCH CHEAPER SOLUTION SUBSIDIES AFTER A SERIES OF MEETINGS WITH AMERICAN OFFICIALS THE TWO SIDES HAMMERED OUT AN AGREEMENT UNDER WHICH THE AMARILLO ECONOMIC DEVELOPMENT CORP WOULD GUARANTEE A MINIMUM REVENUE FOR AMERICAN'S THREE DAILY FLIGHTS IN THE SIXMONTH PERIOD BEGINNING JULY 1 IN RETURN AMERICAN AGREED TO UPGRADE ITS JETS TO 142SEAT MD80 AIRCRAFT FROM 97SEAT F100S AND IT AGREED TO CUT DAILY AMERICAN EAGLE TURBOPROP SERVICE TO AS FEW AS ONE FLIGHT FROM FOUR TO FUNNEL MORE PASSENGERS TO THE JETS UNDER THE AGREEMENT AMARILLO'S MAXIMUM EXPOSURE IS 1 MILLION DURING THE SIX MONTHSAN IMPORTANT CONSIDERATION GIVEN THAT AMERICAN HAS BEEN LOSING ABOUT 2 MILLION EVERY SIX MONTHS ON THE JETS ACCORDING TO MR BOURN THE JETS WILL NEED TO CARRY AN AVERAGE OF ABOUT 100 PASSENGERS PER FLIGHT IN ORDER TO AVOID DEFICIT PAYMENTS HE ADDS THAT OFFICIALS BOTH HOPE AND EXPECT NOT TO HAVE TO ACTUALLY USE VERY MUCH OR ANY OF THOSE FUNDS IF WE THOUGHT WE'D ACTUALLY BE PAYING A MILLION DOLLARS WE WOULDN'T BE DOING THIS BUT CRITICS SAY THAT CUTTING BACK ON AMERICAN EAGLE FLIGHTS WILL DECREASE THE TRAVEL OPTIONS AVAILABLE THEY'RE NOT LOOKING AT WHAT'S GOOD FOR THE COMMUNITY WHICH IS FREQUENCY OF FLIGHTS SAYS EDWARD MARTELLE A SPOKESMAN FOR AMERICAN EAGLE THEY'RE LOOKING AT WHETHER THEY HAVE A JET SITTING THERE A TRAVELER DEPARTING FOR LONDON'S HEATHROW AIRPORT TOMORROW HAS TWO OPTIONS ON AMERICAN LEAVING AT 625 AM ON AN AMERICAN JET AND THEN WAITING MORE THAN FIVE HOURS AT DFW FOR THE FLIGHT TO LONDON OR BOARDING AN AMERICAN EAGLE TURBOPROP AT 1030 TAKING 15 MINUTES LONGER TO GET TO DFW AND MAKING THE LONDON FLIGHT WITH JUST 45 MINUTES WAITING AT THE AIRPORT WILLIAM FREDRICK MANAGING DIRECTOR OF THE WADLEYDONOVAN GROUP A MORRISTOWN NJ CORPORATERELOCATION FIRM SAYS JET SERVICE IS A PLUS IN THE RECRUITING GAME BUT ADDS THAT IF AMARILLO DECREASES THE NUMBER OF FLIGHTS THE END RESULT ALMOST BECOMES A WASH A BETTER STRATEGY HE SUGGESTS MIGHT BE TO RECRUIT BUSINESSES THAT DON'T NEED TO BE CLOSE TO AN AIR HUB SUCH AS MANUFACTURERS OR BACKOFFICE OPERATIONS AND SPEND ECONOMICDEVELOPMENT MONEY ON IMPROVING EDUCATION AND INFRASTRUCTURE THE AVERAGE BUSINESSPERSON HE SAYS ISN'T GOING TO GO TO AMARILLO BECAUSE OF ITS GOOD AIR SERVICE HE SAYS 9403160038 940316 BUSINESS BRIEF BRASCAN LTD DEBENTURE HOLDERS' DISPUTE TO BE SETTLED BY PAYMENT BRASCAN LTD SAID IT WILL REPAY 625 MILLION OF A 500 MILLION DEBENTURE ISSUED IN 1989 TO SETTLE A DISPUTE WITH DEBENTURE HOLDERS IN A COURT FILING IN BRITAIN LAST YEAR THE GROUP OF DEBENTURE HOLDERS LED BY CHEMICAL BANKING CORP ALLEGED THAT BRASCAN HAD VIOLATED THE TERMS OF THE DEBENTURES WHEN IT SOLD ITS 37 STAKE LAST YEAR IN JOHN LABATT LTD A TORONTO BREWING CONCERN THE GROUP CLAIMED THAT THE SALE VIOLATED A CLAUSE IN THE AGREEMENT RELATING TO THE SALE OF ALL OR A SUBSTANTIAL PART OF BRASCAN A COURT RULING AGAINST BRASCAN A TORONTO HOLDING COMPANY AT THE CENTER OF THE CORPORATE EMPIRE CONTROLLED BY PETER AND EDWARD BRONFMAN COULD HAVE REQUIRED THE COMPANY TO RENEGOTIATE THE TERMS OF THE DEBENTURES OR REPAY THE ISSUE IN FULL THE DEBENTURES PAY A FLOATING RATE OF INTEREST AND MATURE IN 1999 AARON REGENT CHIEF FINANCIAL OFFICER OF BRASCAN SAID THE COMPANY ALSO AGREED TO AMEND CERTAIN COVENANTS IN THE DEBENTURE AGREEMENT INCLUDING A CLARIFICATION OF WHAT SUBSTANTIAL MEANS HE DECLINED TO BE MORE SPECIFIC THE SETTLEMENT ENDS ALL COURT PROCEEDINGS WHICH WERE TO HAVE BEGUN IN JUNE MR REGENT SAID CHEMICAL BANKING DECLINED TO COMMENT 9403160037 940316 MODEM OPERANDI AS POLITICS GO DIGITAL INFO HIGHWAY TRAFFIC IS HEAVY IN RIGHT LANE COMPUTER FORUMS SATELLITES AIR CONSERVATIVE AGENDA LIBERALS TRY TO CATCH UP SOFTWARE THAT PLAYS HARDBALL BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT'S EARLY MORNING AND YOU'RE A NEWWAVE CONSERVATIVE GIRDING FOR BATTLE YOU FLIP ON YOUR PERSONAL COMPUTER AND CALL UP THE CONSERVATIVE DAILY A COMPUTERIZED DAILY PLANNER THAT TODAY OFFERS A PITHY ANTIABORTION COMMENTARY AND A CARTOON TO PUNCTUATE IT TO GET READY FOR THE DEBATE ON THE CLINTON HEALTH PLAN YOU CRUISE INTO THE TOWN HALL COMPUTER FORUM FOR CONSERVATIVES AND PLUCK OUT THE LATEST THINKTANK TALKING POINTS TRASHING THE ADMINISTRATION'S PROGRAM FOR AN INVIGORATING LUNCH IT'S OVER TO THE RUSH ROOM IN THE PALM RESTAURANT IN DOWNTOWN WASHINGTON TO LISTEN TO RADIO FIREBRAND RUSH LIMBAUGH AND FAX IN A COMMENT LATER YOU SHARE COMPUTERIZED POSTSHOW CHATTER ON COMPUSERVE'S RUSH LIMBAUGH FORUM AFTER WORK YOU RELAX AT HOME BY TUNING YOUR TV TO NATIONAL EMPOWERMENT TELEVISION THE NEW 24HOUR CONSERVATIVE CABLETELEVISION NETWORK THIS ISN'T A FANTASY IT'S THE WAY CONSERVATIVES ARE OPERATING IN 1994 POLITICAL OPERATIVES ARE RAPIDLY DISCOVERING THAT THE INFORMATION SUPERHIGHWAY CARRIES BIG POTENTIAL FOR POWER BOTH BY MAKING IT EASIER FOR ACTIVISTS TO LINK UP AND BY ALLOWING LEADERS TO SEND THEM MESSAGES WITH ELECTRIFYING SPEED AND IT IS CONSERVATIVES WHO HAVE BEGUN MOVING ONTO THE HIGHWAY THE FASTEST WELL AHEAD OF THEIR LIBERAL FOES ALL THIS TECHNOLOGY HAS BEEN AROUND FOR A WHILE BUT ONLY NOW ARE PEOPLE STARTING TO USE IT EFFECTIVELY POLITICALLY SAYS LAMAR ALEXANDER A FORMER TENNESSEE GOVERNOR AND BUSH EDUCATION SECRETARY WHO NOW PRODUCES HIS OWN TV PROGRAM IN TEDDY ROOSEVELT'S DAY REPUBLICANS ORGANIZED THROUGH COMMUNITY CLUBS MR ALEXANDER ADDS BUT IN THE 1990S THEY WILL BE DOING IT IN THEIR NEIGHBORHOODS HOOKED UP BY CABLE TELEVISION AND NOT JUST BY CABLE TV BUT ALSO BY MODEM SATELLITE DISH AND INTERACTIVE VIDEO MICHIGAN GOV JOHN ENGLER AN AMBITIOUS YOUNG CONSERVATIVE HAS JUST STARTED HIS OWN COMPUTERIZED FORUM ON AMERICA ONLINE THE HERITAGE FOUNDATION AND NATIONAL REVIEW MAGAZINE ARE LAUNCHING THE JOINT TOWN HALL COMPUTER NETWORK WHERE ENTHUSIASTS CAN TALK AND RETRIEVE BACKGROUND PAPERS AND ARTICLES THE REPUBLICAN NATIONAL COMMITTEE LAST MONTH STARTED BOTH ITS OWN COMPUTER FORUM AND A WEEKLY HOURLONG TV SHOW BROADCAST BY SATELLITE TO 4000 LOCAL GOP ORGANIZATIONS NATIONAL EMPOWERMENT TELEVISION WHICH WAS STARTED BY ACTIVIST PAUL WEYRICH HOPES TO GO INTERACTIVE ON AN EXPERIMENTAL BASIS WITHIN TWO YEARS IF FOR EXAMPLE SENATE GOP LEADER ROBERT DOLE WERE ON DISCUSSING TAX CUTS VIEWERS COULD INSTANTLY VOTE ON WHETHER HE SHOULD RUN FOR PRESIDENT AND ALSO PULL UP A BACKGROUND PAPER ON LOW TAX RATES WE DON'T EVEN KNOW WHAT WE'VE GOT SAYS REPUBLICAN NATIONAL CHAIRMAN HALEY BARBOUR WE'RE JUST STARTING TO USE TECHNOLOGY IN THE WAY A LOT OF BUSINESSES AND INDUSTRIES HAVE BEEN USING IT OF COURSE DEMOCRATS AND LIBERALS ALSO ARE DISCOVERING THIS TOO THE DEMOCRATIC PARTY STARTED A COMPUTER FORUM TO DISPENSE INFORMATION BEFORE THE GOP DID AND FAXES OUT 2700 COPIES OF DEMOCRATIC TALKING POINTS EVERY DAY TO FOLLOWERS THE CLINTON WHITE HOUSE USES COMPUTER NETWORKS TO SEND OUT WORD OF ITS POLICIES AND VIEWS AND TO TAKE IN MAIL FROM THE PUBLIC ENVIRONMENTALISTS AND GAY AND LESBIAN ACTIVISTS HAVE BEEN PARTICULARLY ACTIVE GAYRIGHTS ADVOCATES ARE ORGANIZED IN A COMPUTER NETWORK CALLED DIGITAL QUEERS AND THE NATIONAL GAY AND LESBIAN TASK FORCE JUST DISCOVERED THE POWER OF ITS FORUM ON AMERICA ONLINE WHEN FIRST INTERSTATE BANCORP IN LOS ANGELES DRAFTED A PERSONNEL POLICY THAT DIDN'T SPECIFICALLY BAN DISCRIMINATION BASED ON SEXUAL ORIENTATION THE TASK FORCE PUT OUT A COMPUTERIZED CALL TO WRITE AND PHONE THE COMPANY LAST MONTH FIRST INTERSTATE ALTERED ITS POLICY A SPOKESMAN SAYS THE DISPUTE AROSE WHEN FIRST INTERSTATE WHICH HAD IN PRACTICE BANNED DISCRIMINATION DRAFTED A CORPORATEWIDE POLICY BASED ON FEDERAL ANTIDISCRIMINATION GUIDELINES THAT DON'T SPECIFICALLY INCLUDE LANGUAGE REGARDING SEXUAL ORIENTATION BUT OVERALL CONSERVATIVES ARE DEFINITELY AHEAD OF LIBERAL GROUPS SAYS STEVE BARR A 34YEAROLD CALIFORNIA DEMOCRATIC ACTIVIST HE RECENTLY RAN UNSUCCESSFULLY FOR STATE PARTY CHAIRMAN BY PREACHING A NEED TO CATCH UP NOW HE IS TRYING TO DO IT ON HIS OWN HE WILL BE HOST OF A LOS ANGELES TV SHOW SLATED TO BE AN URBAN PROGRESSIVE VERSION OF WHAT RUSH LIMBAUGH DOES WITH AN INTERACTIVE ELEMENT TO IT CONSERVATIVES ARE OUT FRONT IN THIS RACE LARGELY BECAUSE A COMBINATION OF FORCES PUSHED THEM TO THE LEADING EDGE OF TECHNOLOGY IN THE 1970S AND 1980S LACKING THE DEMOCRATS' ADVANTAGE OF A SYMPATHETIC LABOR MOVEMENT WITH A NATIONAL NETWORK OF LOCAL BRANCHES REPUBLICANS HAD LONG CAST ABOUT FOR A SIMILAR ORGANIZING TOOL IN THE 1970S RICHARD VIGUERIE DISCOVERED ONE IT WAS DIRECT MAIL THEN A REVOLUTIONARY CONCEPT IN WHICH COMPUTERS WERE USED TO BUILD VAST MAILING LISTS OF SYMPATHETIC CITIZENS GENERATE REGULAR LETTERS TO THEM AND ROUSE THEM TO DONATE MONEY TO CAUSES JUST AS THAT HIGHTECH LIGHT WAS GOING ON OVER CONSERVATIVES' HEADS ANOTHER NEW TECHNOLOGY OFFERED THEM A WAY TO ADDRESS THEIR LONGSTANDING COMPLAINTS THAT TVNETWORK NEWS HAS A LIBERAL BIAS THAT TECHNOLOGY WAS CABLE PAT ROBERTSON AND JERRY FALWELL LAUNCHED SHOWS AND EVENTUALLY AN ENTIRE NETWORK CARRYING A POLITICAL AS WELL AS A RELIGIOUS MESSAGE AND CONSERVATIVE COMMENTATORS SUCH AS ROBERT NOVAK AND PATRICK BUCHANAN ESTABLISHED EARLY HOMES ON CABLE BY AND LARGE CONSERVATIVES HAVE BEEN CUT OUT OF MAINSTREAM TV ARGUES BURT PINES A FORMER JOURNALIST WHO IS VICE CHAIRMAN OF NATIONAL EMPOWERMENT TELEVISION CONSERVATIVES HAD TO FIND OTHER WAYS OF COMMUNICATING THAT NEED BECAME MORE COMPELLING IN 1993 WHEN REPUBLICANS LOST THE WHITE HOUSE BULLY PULPIT THAT'S WHEN NATIONAL EMPOWERMENT TELEVISION BEGAN TAKING SHAPE MR WEYRICH HEAD OF AN ADVOCACY GROUP CALLED THE FREE CONGRESS FOUNDATION HAD A SMALLSCALE OPERATION TO PRODUCE PERIODIC TV PROGRAMS FOR SATELLITE BROADCAST IN MARCH 1993 HE SUMMONED HIS SMALL STAFF AND ANNOUNCED WE'RE GOING TO TURN THIS FOUNDATION INTO A TV NETWORK AND EACH OF YOU IS GOING TO HAVE YOUR OWN PROGRAM MR WEYRICH WHO KEEPS A MODEL OF GENGHIS KHAN'S SWORD ON HIS OFFICE WALL SO HE CAN TELL VISITORS HE SITS TO THE RIGHT OF GENGHIS KHAN REASONED THAT THE CSPAN PUBLICAFFAIRS NETWORK HAD SHOWN THERE IS AN AUDIENCE FOR POLITICAL PROGRAMMING AND IN THE COMING WORLD OF INNUMERABLE CABLE CHANNELS HE THOUGHT OPERATORS WOULD BE EAGER FOR POLITICAL PROGRAMMING WITH A SHARPER EDGE MANY WERE SKEPTICAL MR WEYRICH WENT TO 63 CONSERVATIVE ORGANIZATIONS INVITING THEM TO SIGN ON AS ASSOCIATES MEANING THEY WOULD PRODUCE THEIR OWN DAILY HOURLONG PROGRAMS AND PAY A FEE TO HAVE THEM CARRIED ON NET ONLY NINE GROUPS INCLUDING THE NATIONAL RIFLE ASSOCIATION AND THE US BUSINESS INDUSTRIAL COUNCIL SIGNED UP STILL WITH THE HELP OF A 1 MILLION GRANT FROM A COMMITTED FOLLOWER MR WEYRICH RADICALLY EXPANDED HIS TELEVISION STUDIO HE PIECED TOGETHER A LINEUP OF ORIGINAL PROGRAMMING INCLUDING A WEEKLY SHOW WITH HOUSE MINORITY WHIP NEWT GINGRICH AS HOST BEGAN SELLING CONVENTIONAL TV ADS AND HOURLONG INFOMERCIALS AND IN DECEMBER MANAGED TO BEGIN A 24HOURADAY SCHEDULE NOW NET ESTIMATES IT IS REACHING 36 MILLION HOUSEHOLDS BY SATELLITE DISH AND FOUR TO FIVE MILLION MORE BY CABLE THE OPERATION ISN'T MAKING MONEY BUT MR WEYRICH THINKS IT WILL EVENTUALLY AT THE SAME TIME MR ALEXANDER WAS MOVING TO LAUNCH HIS MONTHLY SATELLITE PROGRAM WHICH TAKES THE FORM OF A TELEVISED TOWN HALL IN WHICH FOLLOWERS LINKED UP BY SATELLITE DISHES WATCH AN HOURLONG DISCUSSION OF SOME HOT TOPIC MR ALEXANDER ADMITS HE HOPES THE FORUM WILL HELP HIM LAUNCH A PRESIDENTIAL BID IN 1996 OTHERS ARE MOVING AGGRESSIVELY INTO COMPUTER NETWORKING THE JOINT HERITAGE FOUNDATIONNATIONAL REVIEW COMPUTER FORUM AFTER A TRIAL RUN AS A FREESTANDING SERVICE IS BEING REORGANIZED AND BEEFED UP FOR LAUNCH ON COMPUSERVE IN APRIL AND NEW CONSERVATIVE COMPUTER ENTREPRENEURS ARE MOVING INTO THE POLITICAL WORLD AS WELL ONE IS 31YEAROLD MARK SHORMAN AN ENGINEER AND CONSULTANT WHO WAS LOOKING FOR A WAY TO COMBINE MY TWO LOVES COMPUTERS AND POLITICS HE RECENTLY FORMED A COMPANY TO PRODUCE THE CONSERVATIVE DAILY A COMPUTERIZED DAILY PLANNER EACH DAY IT GIVES SUBSCRIBERS A CONSERVATIVE COMMENTARY AND RELATED CARTOON ALONG WITH A MORE CONVENTIONAL DAILY CALENDAR IT ALSO CONTAINS AN ENCYCLOPEDIA OF STATISTICS THAT REVEAL CONSERVATIVES ARE RIGHT ON A HOST OF ISSUES MR SHORMAN PLANS TO SEND SUBSCRIBERS NEW COMPUTER DISKS QUARTERLY TO UPDATE THE CALENDAR IT IS UNCLEAR HOW MUCH EFFECT ALL THIS INFORMATIONAGE POLITICKING WILL HAVE SOME DEMOCRATS SUGGEST THAT REPUBLICAN AND CONSERVATIVE TV SHOWS AMOUNT TO LITTLE MORE THAN EXPENSIVE PREACHING TO THE CHOIR AS A PRIORITY IN AN ELECTION YEAR SHOULD YOU PUT THAT MONEY INTO TALKING TO PEOPLE WHO ARE ALREADY FOR YOU ASKS CATHERINE MOORE SPOKESWOMAN FOR THE DEMOCRATIC NATIONAL COMMITTEE STILL DEMOCRATS ARE CONSIDERING STARTING THEIR OWN SHOWS AND IN ANY CASE THERE'S NO DOUBT THAT A LOT MORE CONSERVATIVE MESSAGES ARE ZIPPING AROUND THE COUNTRY HERE ARE SOME IMAGES FROM JUST ONE DAY'S STROLL THROUGH THE LAND OF HIGHTECH CONSERVATISM ON THE REPUBLICAN PARTY'S COMPUTER FORUM AN INQUISITIVE GOPER TRYING TO WEIGH IN ON THE HEALTHCARE DEBATE PLEADS FOR HELP IN FINDING THE TEXT OF SEN DOLE'S RESPONSE TO PRESIDENT CLINTON'S STATE OF THE UNION SPEECH HIS QUERY IS PROMPTLY ANSWERED BY A GOP STAFFER WHO DIRECTS HIM TO THE FORUM'S COMPUTERIZED LIBRARY ON THE RUSH LIMBAUGH COMPUTER FORUM RUSH'S TROOPS ARE EGGING ON ONE ANOTHER ABOUT THE EVILS OF GUNCONTROL LAWS HOW MANY MORE LAWS DO WE NEED FUMES JOHN A LIMBAUGH FAN EVENTUALLY WE WILL HAVE SO MANY INEFFECTIVE LAWS THAT THE GUNCONTROL CRUSADERS CAN PUSH FOR A COMPLETE BAN AS THE ONLY SOLUTION ON RISING TIDE THE WEEKLY REPUBLICAN PARTY PROGRAM GOP POLITICIANS ARE TALKING HEALTH CARE OVER ON NET THE COANCHORS OF THE NIGHTLY AMERICAN FAMILY SHOW ARE BASHING THE CLINTON ADMINISTRATION FOR THE WAY IT HAS IMPLEMENTED CONGRESS'S INSTRUCTIONS ON GAYS IN THE MILITARY AND MR WEYRICH HIMSELF THE NETWORK FOUNDER AND A ONETIME MILWAUKEE TELEVISION REPORTER HOSTS A VIEWER CALLIN PROGRAM WITH GUESTS INCLUDING VIC GOLD BIOGRAPHER OF FORMER PRESIDENT BUSH MR GOLD GETS IN A FEW SHOTS AT THE LIBERAL MEDIA AND A CALLER FROM SYRACUSE NY ALLOWS THAT WHEN PRESIDENT BUSH RAISED TAXES I GOT SO MAD I TELL YOU I CRIED BUT THE SPIRIT OF THE TECHNOLOGICALLY EMPOWERED CONSERVATIVES SEEMED TO BE SUMMARIZED BEST BY A CALLER FROM CLARKSVILLE ARK WHO PROCLAIMS I THANK GOD EVERY DAY FOR NET 9403160036 940316 BUSINESS BRIEF EASTMAN KODAK CO COMPUTER INDUSTRY PARTNERS SOUGHT FOR DIGITAL IMAGING EASTMAN KODAK CO CHAIRMAN GEORGE FISHER PLANS TO EXPAND THE COMPANY'S ELECTRONIC IMAGING BUSINESS THROUGH JOINT VENTURES WITH US COMPUTER COMPANIES KODAK WILL RESTRUCTURE ITS CORE IMAGING DIVISION WITHIN THREE MONTHS TO IMPLEMENT A NEW FOCUS ON ELECTRONIC TECHNOLOGY SAID MR FISHER WHO JOINED KODAK DEC 1 AFTER LEADING MOTOROLA INC TO THE FOREFRONT OF WIRELESS ELECTRONIC TECHNOLOGY THE ALLIANCES SHOULD BE SET BY THE END OF THE YEAR AND ALTHOUGH HE NAMED NO ONE SPECIFIC MR FISHER SAID THERE WOULD NOT BE ONE MASTER PARTNER MR FISHER ALSO SAID THAT HE WOULD GO OUTSIDE THE COMPANY FOR A FEW KEY LEADERS TO DIRECT THE DIGITAL SIDE OF IMAGING WE NEED TO SEPARATE THE TWO HE SAID THERE'S BEEN TOO MUCH FEAR THAT THE NEW TECHNOLOGY WOULD KILL THE OLD BUSINESS YET HE SAID KODAK WILL KEEP ONE PERSON TO WHICH BOTH SIDES WILL REPORT 9403160035 940316 BUSINESS BRIEF NISSAN MOTOR CO MINIVAN CLASS ACTION ENDS WITH INCREASED SETTLEMENT THE US SALES ARM OF TOKYOBASED NISSAN MOTOR CO SAID IT SETTLED A CLASSACTION LAWSUIT FILED BY OWNERS OF FIREPRONE NISSAN VANS IN TEXAS WHICH INCREASES TO 1000 THE AMOUNT OF MONEY VAN OWNERS CAN RECEIVE TOWARD THE PURCHASE OR LEASE OF ANOTHER NISSAN VEHICLE NISSAN MOTOR CORP USA SAID THE AGREEMENT GIVES OWNERS OF 1987 TO 1990 NISSAN VANS CODENAMED C22 A 1000 COUPON THAT ALSO MAY BE USED BY A SPOUSE PARENT OR CHILD VAN OWNERS MAY OPT TO RECEIVE A 750 COUPON THAT CAN BE SOLD TO ANYONE THE COUPON WHICH EXPIRES IN MARCH 1995 COULD COST NISSAN 30 MILLION IF EVERY NISSAN VAN OWNER CASHES IN NISSAN SAID IT WILL BEGIN NOTIFYING VAN OWNERS OF THE LARGER COUPON BY MAIL THIS WEEK THE SETTLEMENT REPLACES A SETTLEMENT REACHED IN CALIFORNIA LAST MONTH WHICH WOULD HAVE GIVEN VAN OWNERS A 500 COUPON TOWARD ANOTHER NISSAN CAR OR TRUCK NISSAN IN FEBRUARY SAID IT WILL BUY BACK ALL OF THE ESTIMATED 33000 NISSAN VANS IT SOLD FROM 1987 TO 1990 BECAUSE OF POTENTIAL ENGINE FIRES 9403160034 940316 BUSINESS BRIEF NASHUA CORP FOURTHPERIOD YEAR RESULTS RESTATED ASSETS VALUE CITED NASHUA CORP RESTATED ITS 1993 FOURTHQUARTER AND YEAR RESULTS TO REFLECT A REVISION OF ITS ESTIMATE OF THE VALUE OF THE ASSETS OF ITS COMPUTERPRODUCTS GROUP IT SAID RESTATED RESULTS FOR THE 1993 FOURTH QUARTER AND YEAR INCLUDE PRETAX RESTRUCTURING CHARGES TOTALING 485 MILLION UP FROM PREVIOUSLY REPORTED CHARGES OF 425 MILLION AS A RESULT THE NASHUA NH FAX PAPER AND SUPPLIES COMPANY REPORTED A 1993 FOURTHQUARTER NET LOSS OF 30 MILLION OR 474 A SHARE AND A YEARLY LOSS OF 192 MILLION OR 302 A SHARE LOSSES WERE PREVIOUSLY REPORTED OF 262 MILLION OR 412 A SHARE AND 153 MILLION OR 240 A SHARE RESPECTIVELY NASHUA ALSO SAID IT HAS SIGNED A LETTER OF INTENT TO SELL ITS THINFILM DISK OPERATIONS TO AN INVESTOR GROUP IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY NASHUA STOCK CLOSED AT 2750 A SHARE UNCHANGED 9403160033 940316 BUSINESS BRIEF APPLE COMPUTER INC SUN MICROSYSTEMS AND HP STATIONS RUN NEW SOFTWARE APPLE COMPUTER INC UNVEILED SOFTWARE THAT ALLOWS WORKSTATIONS FROM SUN MICROSYSTEMS INC AND HEWLETTPACKARD CO TO RUN MOST PROGRAMS WRITTEN FOR APPLE'S MACINTOSH COMPUTER THE NEW PRODUCT CALLED THE MACINTOSH APPLICATION ENVIRONMENT WILL BE PRICED AT 549 WHEN CUSTOMERS BUY IT FROM APPLE IN ADDITION SUN AND HP AGREED TO JOINTLY MARKET THE PRODUCT TO THEIR CUSTOMERS AS WELL AS HELPING TO DEVELOP AND TEST IT THE PRODUCT ALLOWS CUSTOMERS TO WORK WITH THE MACINTOSH SYSTEM OF MENUS AND COMMANDS AND ALSO MANIPULATE THE UNIX FILE SYSTEM USED ON THE WORKSTATIONS 9403160032 940316 TEXAS JOURNAL HEARD IN TEXAS SECTOR ACE DEALS OUT FUND PICKS FOR INVESTORS WITH STOUT HEARTS BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN IF YOU'RE A BUYANDHOLD INVESTOR THERE'S NO NEED TO READ FURTHER RON ROWLAND'S MUTUALFUND INVESTMENT STRATEGY ISN'T FOR THE COMPLACENT MR ROWLAND WHO PUBLISHES A MONTHLY NEWSLETTER THE SECTOR ACE IS AN AGGRESSIVE INVESTOR WHO ADVOCATES FREQUENT SWITCHING BETWEEN MUTUALFUND SECTORS TO PROFIT FROM THE WAXING AND WANING OF VARIOUS INDUSTRIES HE HAS DEVELOPED A PROPRIETARY FORMULA CALLED RELATIVE STRENGTH MOMENTUM WHICH CALCULATES A SERIES OF MOVING AVERAGES TO PRODUCE A SINGLE INDICATOR SHOWING AN INDUSTRIAL SECTOR'S MOSTLIKELY COURSE OVER THE NEXT THREE TO FOUR MONTHS HE RECOMMENDS INVESTING IN THE HIGHESTRATED SECTOR OR SECTORS AT ANY PARTICULAR TIME WHEN A SECTOR'S RANKING BEGINS TO SLIP TYPICALLY BETWEEN ONE MONTH AND FOUR MONTHS LATER HE RECOMMENDS SWITCHING INTO A HIGHERRATED ONE THE RECIPE THOUGH RISKY HAS SHOWN SOME IMPRESSIVE RESULTS FOR THE 12 MONTHS ENDED FEB 28 MR ROWLAND'S THREE MODEL PORTFOLIOS WHICH RETURNED 362 329 AND 177 RESPECTIVELY WALLOPED THE STANDARD & POOR'S 500STOCK INDEX'S 51 SHOWING NOT BAD FOR A NEWSLETTER WRITER WHOSE BACKGROUND IS IN ELECTRICAL AND COMPUTER ENGINEERING AND WHOSE MOST RECENT JOB TITLE WAS SENIOR ENGINEERING MANAGER AT INTERNATIONAL BUSINESS MACHINES CORP MR ROWLAND 38 YEARS OLD LEFT THAT JOB IN JANUARY TO PURSUE HIS NEWSLETTER CAREER WHICH HAS ITS ROOTS IN 1986 WHILE EXAMINING HIS INDIVIDUAL RETIREMENT ACCOUNT AND 401K ACCOUNTS MR ROWLAND SAYS HE REALIZED THAT IF HE PUT AS MUCH TIME INTO MANAGING HIS INVESTMENTS AS HE DID WORKING AT IBM THE INVESTMENTS WOULD PROVIDE MORE INCOME THAN MY JOB IN 1991 AFTER YEARS OF REFINING HIS INVESTMENT FORMULA HE STARTED THE SECTOR ACE SINCE THEN THE NEWSLETTER'S RECOMMENDATIONS HAVE RETURNED A CUMULATIVE 128 OR 316 ANNUALLY WHICH MR ROWLAND CLAIMS BESTS THE THREEYEAR GAIN OF ANY MUTUALFUND NEWSLETTER TRACKED BY THE HULBERT FINANCIAL DIGEST AN ALEXANDRIA VA NEWSLETTER THAT FOCUSES ON THE INVESTMENT NEWSLETTER INDUSTRY PUBLISHER MARK HULBERT DOESN'T VERIFY THOSE NUMBERS BECAUSE HIS NEWSLETTER HASN'T BEEN FOLLOWING THE SECTOR ACE THAT LONG HOWEVER MR HULBERT REPORTS THAT FOR 1993 THE SECTOR ACE RANKED FIFTHBEST OF THE 50 MUTUALFUND NEWSLETTERS HIS PUBLICATION TRACKS MR ROWLAND WHO WORKS FROM AN OFFICE IN HIS AUSTIN HOME INVESTS HIS OWN MONEY IN HIS THREE MODEL PORTFOLIOS TWO OF THOSE PORTFOLIOS FOCUS SOLELY ON FIDELITY INVESTMENTS' FAMILY OF 35 SECTOR FUNDS COVERING JUST ABOUT EVERY INDUSTRY BIG AND SMALL HIS SINGLE SECTOR PORTFOLIO THE RISKIEST INVESTS 100 IN JUST ONE SECTOR FUND THE MULTIPLE SECTOR PORTFOLIO HOLDS FOUR FIDELITY SECTOR FUNDS AND OFFERS MORE STABILITY THE THIRD PORTFOLIO RECOMMENDS FOUR NOLOAD MUTUAL FUNDS AND FOCUSES ON STYLE INVESTINGVALUE GROWTH SMALLCAPITALIZATION CYCLICALS ETC RATHER THAN SECTOR INVESTING NO LOAD MEANS THE FUNDS HAVE NO UPFRONT SALES CHARGES BUT THE HIGH RISK INVOLVED IN FREQUENT FUND SWITCHING CAN SCARE AWAY MANY INVESTORS AMY ARNOTT AN ANALYST AT MORNINGSTAR MUTUAL FUNDS NEWSLETTER IN CHICAGO NOTES THAT SECTOR FUNDS BY DEFINITION ARE VOLATILE INVESTMENTS DESIGNED TO GIVE INVESTORS A LONGTERM CONCENTRATED BET ON A SINGLE INDUSTRY THE PROBLEM IS THAT OVER TIME FEW PEOPLE HAVE BEEN ABLE TO SUCCESSFULLY TIME SECTOR ROTATIONS MS ARNOTT SAYS SWITCHING ALSO CAN LEAD TO ADDED TRANSACTION COSTS FIDELITY WHICH IS KEEPING TABS ON SEVERAL HIGHPROFILE AND ACTIVE SECTOR SWITCHERS HAS BEGUN IMPOSING REDEMPTION FEES FOR TRADERS WHO JUMP INTO AND OUT OF FUNDS WITHIN 90 DAYS THOSE WHO HOLD FOR LESS THAN 30 DAYS ARE SLAPPED WITH A FEE OF 075 OF THE TRANSACTION VALUE A 150 CHARGE FOR A 20000 TRADE ALSO SECTOR ROTATION ISN'T FOR SMALL TRADERS MANY FUNDS THAT MR ROWLAND RECOMMENDS REQUIRE MINIMUM INVESTMENTS OF 5000 AS SUCH HE NOTES THAT SUBSCRIBERS SHOULD START WITH A BANKROLL OF AT LEAST 20000 FOR HIS MULTIPLE SECTOR PORTFOLIO HE ALSO ADVISES THAT FOLLOWERS OF THE NOLOAD FUND PORTFOLIO OPEN ACCOUNTS AT DISCOUNT BROKERAGE FIRMS THAT ALLOW FREE SWITCHING BETWEEN FUND FAMILIES DRAWBACKS ASIDE MR ROWLAND'S 1200 SUBSCRIBERS WHO EACH PAY 99 A YEAR HAVE RECEIVED SOME WINNING RECOMMENDATIONS IN RECENT MONTHS A FOURMONTH COMMITMENT TO THE BROADCAST AND MEDIA SECTOR LAST YEAR NETTED A 121 GAIN WHILE HIS RECOMMENDED INVESTMENT IN EMERGING MARKETS EARNED 253 IN JUST THREE MONTHS FIDELITY'S SELECT MEDICAL DELIVERY ONE OF MR ROWLAND'S CURRENT FAVORITES IS UP MORE THAN 16 SINCE HE RECOMMENDED BUYING IT IN MIDOCTOBER IN ADDITION TO MEDICAL DELIVERY WHICH HE RECOMMENDS FOR BOTH THE SINGLE SECTOR AND MULTIPLE SECTOR MODEL PORTFOLIOS MR ROWLAND THESE DAYS IS PARTIAL TO THE COMPUTER TECHNOLOGY AND INDUSTRIAL MATERIAL SECTOR FUNDS IN THE NOLOAD FUND BASKET MR ROWLAND CURRENTLY LIKES SCUDDER'S JAPAN FUND AND THE ROBERTSON STEPHENS VALUE PLUS AND EMERGING GROWTH FUNDS HE HAS A QUARTER OF THE 50000 PORTFOLIO IN CASH READY TO DEPLOY SOON IN EITHER THE WARBURG PINCUS GROWTH & INCOME FUND OR THE EVERGREEN GLOBAL REAL ESTATE FUND TO KEEP SUBSCRIBERS APPRISED OF HIS DECISIONS BETWEEN ISSUES HE OFFERS A TOLLFREE HOT LINE UPDATED EVERY SUNDAY MR ROWLAND IS THE FIRST TO CONCEDE HIS FORMULA ISN'T PERFECT IT TYPICALLY CATCHES TRENDS MIDCYCLE MEANING INVESTORS MISS OUT ON THE FIRST THIRD OR FIRST HALF OF GAINS AND IT DOESN'T FARE PARTICULARLY WELL IN RAGING BULL MARKETS IN THOSE KINDS OF MARKETS IT SOMETIMES ACTS AS AN OVERBOUGHT OVERSOLD INDICATOR AND YOU END UP BUYING AT THE PEAK JUST AS A FUND IS ABOUT TO HIT A MINOR CORRECTION HE NOTES AND HIS FORMULA DOESN'T ALWAYS PICK WINNERS IN LATENOVEMBER HE RECOMMENDED SWITCHING INTO FIDELITY'S SELECT SOFTWARE FUND ONLY TO JUMP OUT LESS THAN A MONTH LATER WITH A 2 LOSS AFTER PEAKING THE FUND DROPPED 5 WHICH TRIGGERED A STOPLOSS ORDER MR ROWLAND EMPLOYS AT TIMES THOUGH HIS CALLS DO SEEM PRESCIENT FOR EXAMPLE IN JANUARY 1992 HIS INVESTMENT MODEL WARNED OF A MOMENTUM SLOWDOWN APPROACHING THE BIOTECH WORLD AS SUCH HE URGED SUBSCRIBERS TO TAKE THEIR 89 FIVEWEEK GAIN AND MOVE ON OVER THE NEXT FEW MONTHS THAT SECTOR FUND LOST ONETHIRD OF ITS VALUE FIRST USA THE DALLAS CREDITCARD ISSUER AND PROCESSOR ROSE 2375 ON MORE THAN FOUR TIMES ITS AVERAGE DAILY VOLUME EARLY LAST WEEK A SECONDARY OFFERING OF FIVE MILLION SHARES OF CONVERTIBLE PREFERRED STOCK WAS PRICED AT 31875 THE STOCK CLOSED AT 34375 LANDRY'S SEAFOOD RESTAURANTS GAINED 225 OR 93 AND TRADED AT NEARLY NINE TIMES ITS AVERAGE DAILY VOLUME A SECONDARY OFFERING OF 22 MILLION SHARES OF STOCK FOR THE HOUSTON CHAIN WAS PRICED THURSDAY AT 26 LANDRY'S STOCK CLOSED AT 2650 9403160031 940316 BUSINESS BRIEF RAYROCK YELLOWKNIFE RESOURCES INC COMPANY AGREES TO ACQUIRE FULL OWNERSHIP OF DEE MINE RAYROCK YELLOWKNIFE RESOURCES INC TORONTO SAID IT AGREED TO PURCHASE THE 56 STAKE IT DOESN'T ALREADY OWN IN THE DEE GOLD MINE IN NEVADA FOR 211 MILLION A SUBSIDIARY OF HOMESTAKE MINING CO SAN FRANCISCO OWNS 44 OF THE MINE AND A 12 STAKE IS HELD BY AN INDIVIDUAL WHO HELPED DISCOVER THE GOLD DEPOSIT RAYROCK A TORONTO MINING AND OILANDGAS CONCERN SAID THE DEE MINE PRODUCED ABOUT 26000 OUNCES OF GOLD IN 1993 AND HAS PROVEN RESERVES OF 169000 OUNCES THE COMPANY SAID BETWEEN 700000 AND 800000 OUNCES OF GOLD AT A NEWLY DISCOVERED DEPOSIT AT THE MINE IS LIKELY TO BE MINEABLE IF THE PRICE OF GOLD CLIMBS TO 400 AN OUNCE OR HIGHER THE ACQUISITION IS SUBJECT TO REGULATORY APPROVAL RAYROCK SAID IT WILL FINANCE THE ACQUISITION WITH ITS WORKING CAPITAL AND AVAILABLE LINES OF BANK CREDIT 9403160030 940316 BUSINESS BRIEF NIKE INC FISCAL 3RDQUARTER NET FELL FIRM SEES GROWTH NEXT YEAR NIKE INC HIT BY THE CHANGING TASTES OF ATHLETIC SHOE BUYERS A SLUMP IN ORDERS AND UNFAVORABLE FOREIGN CURRENCY RATES SAID FISCAL THIRDQUARTER NET INCOME FELL 29 TO 632 MILLION OR 85 CENTS A SHARE THAT COMPARES WITH NET OF 895 MILLION OR 116 A SHARE A YEAR AGO THE RESULTS WERE WITHIN ANALYSTS' EXPECTATIONS WHO ACCORDING TO ZACK'S INVESTMENT RESEARCH INC FORECAST A MEAN AVERAGE OF 89 CENTS A SHARE REVENUE FOR THE PERIOD ENDED FEB 28 SLID 10 TO 8718 MILLION CHAIRMAN PHILIP H KNIGHT SAID NIKE EXPECTS TO RESUME GROWTH IN THE NEXT FISCAL YEAR HE SAID WORLDWIDE ORDERS FOR THE FISCAL FIRST QUARTER CLIMBED 4 FROM A YEAR EARLIER THE BIGGEST GAIN IN MORE THAN A YEAR NIKE SHARES ROSE 1 TO 5450 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9403160029 940316 NEW YORK SAYS NYNEX HAD PHONE CUSTOMERS FOOT ADVERTISING COSTS NEW YORK THE STATE'S CONSUMER PROTECTION BOARD SAID NYNEX CORP WAS WRONGLY PASSING ON CERTAIN ADVERTISING COSTS TO TELEPHONE CUSTOMERS AND ASKED LOCAL REGULATORS TO ELIMINATE THOSE CHARGES FROM LOCAL PHONE RATES THE BABY BELL HAS LAUNCHED AN AGGRESSIVE TV AND PRINT CAMPAIGN LATELY TO INFORM CUSTOMERS OF ITS MOVE TO ADOPT THE SINGLE NYNEX BRAND NAME FOR ALL ITS TELEPHONE OPERATING UNITS NYNEX LIKE OTHER REGULATED PHONE COMPANIES IS PROHIBITED FROM USING RATEPAYER REVENUE TO FUND NONSTANDARD PHONE SERVICES NYNEX DENIED THE BOARD'S ACCUSATION NONE OF THE COSTS TO PROMOTE THE ONEBRAND EFFORT ARE COMING FROM RATEPAYERS A SPOKESMAN SAID AND A SPOKESWOMAN FOR THE PUBLIC SERVICE COMMISSION SAID THE REGIONAL PHONE COMPANY HASN'T YET ASKED TO RECOVER ADVERTISING EXPENSES THROUGH ITS RATES 9403160028 940316 MARKETING BRIEF NOTED KURALT CHARLES KURALT 59 WILL RETIRE FROM CBS INC AFTER 37 YEARS WITH THE NETWORK BROADCASTING CBS SUNDAY MORNING FOR THE LAST TIME APRIL 3 GLAMOUR ADVANCE PUBLICATIONS INC'S CONDE NAST PUBLICATIONS INC NAMED CHARLES T TOWNSEND 49 PUBLISHER OF GLAMOUR MAGAZINE SUCCEEDING JACK KLIGER 47 WHO WAS RECENTLY NAMED SENIOR VICE PRESIDENT CORPORATE SERVICES WHO'S NEWS BERTELSMANN AG NAMED ERIK ENGSTROM 33 EXECUTIVE VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER FOR ITS BANTAM DOUBLEDAY DELL PUBLISHING GROUP UNIT SUCCEEDING PETER OLSON WHO WAS RECENTLY NAMED TO HEAD ITS NORTH AMERICAN BOOK DIVISION BERTELSMANN'S GRUNER + JAHR USA PUBLISHING UNIT SAID ITS YM MAGAZINE NAMED SALLY LEE 32 TO BE EDITOR IN CHIEF SUCCEEDING BONNIE HURWITZ FULLER 9403160027 940316 POLITICS & POLICY ROSTENKOWSKI WINS DEMOCRATIC RACE FOR RENOMINATION BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL REP DAN ROSTENKOWSKI'S CLOUT OVERRODE ALLEGATIONS OF CORRUPTION GIVING THE CHICAGO DEMOCRAT A SURPRISINGLY LARGE MARGIN OF VICTORY IN HIS RACE FOR NOMINATION TO A 19TH TERM THE CHAIRMAN OF HOUSE WAYS AND MEANS COMMITTEE GARNERED ABOUT HALF THE VOTE IN YESTERDAY'S ILLINOIS DEMOCRATIC PRIMARY HIS TOP RIVAL STATE SEN JOHN CULLERTON RECEIVED ABOUT ONETHIRD OF THE VOTE FORMER CHICAGO ALDERMAN DICK SIMPSON REP ROSTENKOWSKI'S 1992 FOE AND TWO MINOR CANDIDATES SPLIT THE REMAINING VOTES POLLS BEFORE THE ELECTION CONSISTENTLY SHOWED A CLOSE RACE WITH A LARGE NUMBER OF UNDECIDED VOTERS THE CRITICS SAID I'M NOT PERFECT AND THEY'RE RIGHT SAID REP ROSTENKOWSKI ACKNOWLEDGING THAT HE HAD MADE MISTAKES IN THE PAST HE ADDED THAT HE WOULD RETURN TO WASHINGTON AND HELP PRESIDENT CLINTON WRITE A HEALTH BILL THAT WILL TAKE CARE OF THOSE WHO NEED THE HELP REP ROSTENKOWSKI 66 YEARS OLD STILL FACES POTENTIAL INDICTMENT BY A FEDERAL GRAND JURY AFTER A NEARLY TWOYEAR PROBE OF HIS OFFICE AND CAMPAIGN FINANCES PEOPLE FAMILIAR WITH THE CRIMINAL INVESTIGATION SAID PROSECUTORS EXPECT TO SEEK AN INDICTMENT POSSIBLY WITHIN A MONTH THAT OUTCOME WOULD BE WORSE FOR REP ROSTENKOWSKI IN TERMS OF HIS IMMEDIATE WASHINGTON STATUS THAN AN ELECTION DEFEAT IF INDICTED HE WOULD HAVE TO FORFEIT HIS CHAIRMANSHIP UNTIL ABSOLVED EVEN IN DEFEAT HE WOULD HAVE REMAINED CHAIRMAN THOUGH A LAME DUCK ONE THE ROSTENKOWSKI RACE WAS THE HOTTEST OF THE NATION'S PRIMARY SEASON GIVEN HIS LARGERTHANLIFE STATURE IN CONGRESS AND HIS IMPORTANCE TO PASSING PRESIDENT CLINTON'S INITIATIVES ON HEALTH WELFARE AND THE BUDGET MR CLINTON AND A HOST OF POLITICAL FIGURES TREKKED TO CHICAGO TO STUMP FOR THE BELEAGUERED LAWMAKER LAST NIGHT REP ROSTENKOWSKI CALLED MR CLINTON'S FEB 28 VISIT A PIVOTAL MOMENT FOR HIS CAMPAIGN I'M PROUD TO BE A SOLDIER IN THE PRESIDENT'S MARCH FOR CHANGE HE ADDED THE DEMOCRATIC NOMINATION IN CHICAGO TYPICALLY IS TANTAMOUNT TO VICTORY BUT REP ROSTENKOWSKI STILL COULD BE VULNERABLE THIS FALL AGAINST THE WINNER OF YESTERDAY'S GOP PRIMARY ESPECIALLY IF THERE IS AN INDICTMENT WITH ABOUT HALF OF THE VOTE COUNTED MICHAEL FLANAGAN WAS LEADING THE REPUBLICAN RACE FROM THE BEGINNING OF THE CAMPAIGN THE ROSTENKOWSKI CAMP ACKNOWLEDGED THAT THEIR CANDIDATE WOULD BE MOST VULNERABLE TO A ONEONONE MATCHUP IN THE PRIMARY THE WAYS AND MEANS CHAIRMAN WAS HELPED BY A SPLINTERED FIELD THAT SPLIT THE ANTIROSTENKOWSKI VOTE REP ROSTENKOWSKI ALSO BENEFITED FROM HIS MILLIONDOLLAR CAMPAIGN CHEST AND THE GETOUTTHEVOTE EFFORTS OF HUNDREDS OF WORKERS FROM THE CITY'S DEMOCRATIC MACHINE 9403160026 940316 TEXAS JOURNAL NEW SKATERS ALSO EXPECT INSTRUCTION IN SELFDEFENSE BY ARTHUR BUCKLER DALLAS THERE'S NOTHING LIKE A LITTLE ROCK 'EM SOCK 'EM ACTION TO HELP TEXANS WARM TO A COLD NORTHERN SPORT LOCAL ICE RINKS SAY BUSINESS HAS BOOMED SINCE FIGURE SKATING BECAME THE NATION'S LEADING SOAP OPERA RINK OFFICIALS ARE QUICK TO NOTE THAT INTEREST IN SKATING ALWAYS JUMPS AROUND THE TIME OF ANY WINTER OLYMPICS BUT THE TONYAANDNANCY AFFAIR APPARENTLY HAS DRAWN EVEN MORE PEOPLE TO THE ICE JUST AS SOON AS MS KERRIGAN GOT WHACKED THINGS REALLY PICKED UP SAYS LILLIAN GONNELL MANAGER AT AMERICAS ICE GARDEN IN DALLAS WHICH NOW HAS A WAITING LIST FOR ITS SKATING SCHOOL AT THE GALLERIA ICE SKATING RINK IN DALLAS ENROLLMENT IN FIGURESKATING LESSONS HAS DOUBLED FROM LAST YEAR WHILE ATTENDANCE AT GENERAL SKATING SESSIONS IS UP 30 TO 40 SAYS MANAGER HOLLY KIRBY SPECTATOR INTEREST IS STRONG TOO THE DAY AFTER THE OLYMPICS ENDED FANS TIED UP PHONE LINES TRYING TO BUY TICKETS FOR THE THREECITY TEXAS LEG OF THE TOUR OF WORLD FIGURE SKATING CHAMPIONS IN LATE JUNE THE HOUSTON SHOW SOLD OUT IN HOURS FOR THOSE WHO HAVEN'T KEPT UP MS KERRIGAN IS SCHEDULED TO APPEAR MS HARDING ISN'T 9403160025 940316 PSE&G NORTHEAST REACH PACT TO TRANSFER EXCESSEMISSION CREDIT NEWARK NJ TWO NORTHEASTERN UTILITIES SAID THEY REACHED AN AGREEMENT TO TRANSFER NITROGENOXIDE EMISSIONS CREDITS A MOVE THAT COULD PROVIDE A FRAMEWORK FOR A REGIONAL EMISSIONSREDUCTION PROGRAM UNDER THE JOINT PROPOSAL PUBLIC SERVICE ELECTRIC & GAS CO WOULD REDUCE ITS OUTPUT OF NITROGEN OXIDE AT ITS ENERGY FACILITIES SOONER THAN REQUIRED BY LAW AND SELL THE EXCESS EMISSION CREDITS THROUGH AN INTERMEDIARY TO NORTHEAST UTILITIES HARTFORD CONN FROM 1995 TO 1999 CLEAN AIR ACTION CORP TULSA OKLA WOULD FACILITATE THE TRANSACTION PROVIDING AS MUCH AS 15 MILLION TO PSE&G A UNIT OF PUBLIC SERVICE ENTERPRISE GROUP INC TO HELP PAY FOR THE EMISSIONS REDUCTIONS IN TURN CLEAN AIR ACTION WOULD RETIRE SOME EMISSIONS CREDITS AND SELL THE REMAINDER TO NORTHEAST UTILITIES NORTHEAST UTILITIES SAID IT WOULD USE THE CREDITS TO ALLOW BUSINESSES IN ITS SERVICE TERRITORY MORE FLEXIBILITY TO MEET REGULATORY EMISSIONS STANDARDS THE PROPOSED INTERSTATE TRADING PROGRAM DERIVES FROM THE 1990 CLEAN AIR ACT WHICH MANDATES A REGIONAL APPROACH TO NITROGENOXIDE EMISSION REDUCTION IN THE NORTHEAST THE OZONE TRANSPORT COMMISSION AND OTHER GROUPS IN CONJUNCTION WITH THE US ENVIRONMENTAL PROTECTION AGENCY HAVE BEEN FORMULATING PLANS TO REDUCE NITROGENOXIDE EMISSIONS 9403160024 940316 CORRECTIONS & AMPLIFICATIONS THE NEW YORK POST'S MANAGING EDITOR IS MARC KALECH HIS NAME WAS MISSPELLED IN AN ARTICLE YESTERDAY ABOUT A PREVIEW OF THE MOVIE THE PAPER THE 18TH ANNUAL INTERNATIONAL COLLEGIATE PROGRAMMING CONTEST FEATURED IN A PAGEONE ARTICLE FRIDAY WAS CONDUCTED BY THE ASSOCIATION FOR COMPUTING MACHINERY AN INDUSTRY TRADE ORGANIZATION BASED IN NEW YORK CORSAIR PARTNERSHIP AN AFFILIATE OF JP MORGAN & CO OWNS A 79 STAKE IN BANCO ESPANOL DE CREDITO AN ARTICLE YESTERDAY INCORRECTLY REPORTED THAT JP MORGAN OWNED A 79 STAKE ALEXANDER ENERGY CORP'S PLANNED ACQUISITION OF AMERICAN NATURAL ENERGY CORP FOR STOCK HAD AN INDICATED VALUE OF 339 MILLION BASED ON ALEXANDER'S CLOSING PRICE THURSDAY AN ARTICLE FRIDAY MISSTATED THE VALUE AS 209 MILLION 9403160023 940316 BUSINESS BRIEF ASYST TECHNOLOGIES INC ORDER VALUED AT 17 MILLION IS PLACED BY SINGAPORE FIRM ASYST TECHNOLOGIES INC SAID IT HAS BEEN AWARDED A 17 MILLION CONTRACT TO DELIVER SEMICONDUCTOR PRODUCTION EQUIPMENT OVER THREE YEARS TO CHARTERED SEMICONDUCTOR A CHIP MAKER IN SINGAPORE ASYST A MILPITAS CALIF MAKER OF EQUIPMENT USED IN THE MANUFACTURE OF SEMICONDUCTORS SAID THE CONTRACT PLUS OTHER ANTICIPATED ORDERS SHOULD CONTRIBUTE TO STRONG RESULTS IN THE SECOND HALF OF THE FISCAL YEAR ENDING MARCH 31 1995 TRADING IN ASYST SHARES WAS HALTED PENDING DISSEMINATION OF THE NEWS 9403160022 940316 ADOBE TO PAY 5158 MILLION TO BUY ALDUS SURPRISE STOCK PACT UNITES PIONEERS IN THE BUSINESS OF DESKTOP PUBLISHING BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL ADOBE SYSTEMS INC SAID IT WILL BUY ALDUS CORP FOR STOCK WITH AN INDICATED VALUE OF 5158 MILLION OR 37375 A SHARE IN A DEAL THAT UNITES THE TWO COMPANIES CREDITED WITH INVENTING THE DESKTOPPUBLISHING INDUSTRY THE COMBINATION CREATES A COMPANY WITH MORE THAN 500 MILLION IN ANNUAL SALES AND A DOMINANT POSITION IN SOFTWARE FOR CREATING DISPLAYING AND PRINTING DOCUMENTS ELECTRONICALLY ALDUS HOWEVER HAS SUFFERED IN RECENT YEARS AS COMPETITORS ERASED THE COMPANY'S EARLY LEAD IN PAGELAYOUT PROGRAMS UNDER THE DEFINITIVE AGREEMENT ADOBE WILL EXCHANGE 115 SHARES OF ITS COMMON STOCK FOR EACH SHARE OF ALDUS WHICH HAS ABOUT 138 MILLION SHARES OUTSTANDING THE COMPANIES SAID THEY EXPECT THE TRANSACTION WILL QUALIFY AS A TAXFREE REORGANIZATION AND A POOLING OF INTERESTS FOR ACCOUNTING AND FINANCIAL PURPOSES THE ACCORD WAS ANNOUNCED AROUND THE TIME THE MARKETS CLOSED YESTERDAY ADOBE SHARES FELL 125 TO 3250 AND ALDUS SHARES ROSE 75 CENTS TO 2625 IN NASDAQ STOCK MARKET TRADING YESTERDAY STARTING ABOUT 10 YEARS AGO BOTH COMPANIES PLAYED A MAJOR ROLE IN THE SUCCESS OF APPLE COMPUTER INC'S MACINTOSH SYSTEM WHICH ENCOUNTERED SLOW SALES UNTIL IT BECAME POPULAR IN PUBLISHING UNDER PAUL BRAINERD A FORMER NEWSPAPER EXECUTIVE WHO COINED THE TERM DESKTOP PUBLISHING SEATTLEBASED ALDUS DEVELOPED A PROGRAM CALLED PAGEMAKER THAT ALLOWED MACINTOSH USERS TO LAY OUT PROFESSIONALLOOKING NEWSLETTERS AND OTHER DOCUMENTS IT ALSO SELLS PERSUASION A PROGRAM USED TO MAKE SLIDE SHOWS AND OTHER PRESENTATIONS ADOBE BASED IN MOUNTAIN VIEW CALIF SUPPLIED SOFTWARE THAT ALLOWED SUCH DOCUMENTS TO BE PRINTED WITH FANCY TYPEFACES ON LASER PRINTERS ADOBE HAS ADDED OTHER PROGRAMS FOR DRAWING ON COMPUTERS AND EDITING PHOTOGRAPHS AND VIDEOS IN ADDITION ADOBE IS BACKING AN AMBITIOUS EFFORT USING A PROGRAM CALLED ACROBAT TO POPULARIZE THE ELECTRONIC PUBLISHING OF DOCUMENTS ON NETWORKS AND CDROM DISKS JOHN WARNOCK ADOBE'S CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT THE COMPANY DECIDED THAT ALDUS'S PRODUCTS COULD BE EASILY INTEGRATED WITH ADOBE'S ALLOWING THE COMBINED COMPANIES TO LEAD THE MARKET FOR SOFTWARE USED TO CREATE AND DELIVER ALL TYPES OF MULTIMEDIA INFORMATION WE LOOKED AT THE FIT AND THE FIT WAS PERFECT SAID MR WARNOCK WHO WILL LEAD THE MERGED COMPANIES CHARLES BIGELOW A PROFESSOR OF DIGITAL TYPOGRAPHY AT STANFORD UNIVERSITY AGREED THAT THE TWO COMPANIES' PRODUCT LINES AND TECHNICAL TEAMS SHOULD MESH WELL IN TERMS OF PRODUCT ARRAY IT MAKES A REALLY WELLINTEGRATED COMPANY HE SAID CHUCK GESCHKE ADOBE'S PRESIDENT WILL BE PRESIDENT OF THE COMBINED COMPANIES MR BRAINERD WHO ANNOUNCED PLANS LAST YEAR TO RELINQUISH THE PRESIDENT'S TITLE AT ALDUS WILL HAVE NO OPERATING ROLE BUT HE WILL JOIN THE COMBINED COMPANIES' BOARD HE ALSO GRANTED ADOBE AN IRREVOCABLE PROXY FOR ALL OF HIS SHARES WHICH TOTAL ABOUT 22 OF ALDUS'S STOCK MR WARNOCK SAID THE COMPANIES SEE SEVERAL AREAS WHERE THEY CAN CUT COSTS INCLUDING OPERATIONS IN JAPAN THOUGH HE WOULDN'T DISCLOSE FURTHER DETAILS THE COMPANIES WHICH HAVE 2100 TOTAL EMPLOYEES PLAN TO KEEP SEPARATE FACILITIES IN CALIFORNIA AND WASHINGTON IN ADOBE'S FISCAL YEAR ENDED NOV 26 THE COMPANY HAD NET INCOME OF 57 MILLION OR 122 A SHARE ON REVENUE OF 3134 MILLION IN 1993 ALDUS EARNED 95 MILLION OR 70 CENTS A SHARE ON REVENUE OF 2067 MILLION THE MERGER WILL BE PUT TO SHAREHOLDERS OF BOTH COMPANIES AT SEPARATE MEETINGS IN JULY AND IS ALSO SUBJECT TO REGULATORY APPROVAL THE COMPANIES SAID 9403160021 940316 INTERNATIONAL MORTARS DON'T HURT HIGHFLYING BAA RESILIENT OPERATOR OF LONDON'S AIRPORTS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL LONDON WHEN THE IRISH REPUBLICAN ARMY STARTED LAUNCHING MORTARS AT LONDON HEATHROW AIRPORT LATE LAST WEEK TWO UNLIKELY THINGS HAPPENED FIRST THE VAST MAJORITY OF THE FLIGHTS FROM EUROPE'S LARGEST AIRPORT TOOK OFF WITH ONLY MINOR DELAYS SECOND THE AIRPORT'S OWNER BAA PLC WITHSTOOD THE ATTACK WITH LITTLE DAMAGE TO EITHER ITS PRIZED ASSET OR ITS HIGHFLYING STOCK PRICE IN FACT AT THE LOWEST POINT IN THE CRISIS THE COMPANY'S STOCK TRADED A MERE 20 PENCE 30 CENTS OR 2 OFF ITS PRICE THE DAY BEFORE THE FIRST MORTARS WERE FIRED IT TRADED YESTERDAY AT 999 PENCE 1496 A SHARE UP 10 PENCE ON THE DAY UNDOUBTEDLY SUCH GOOD FORTUNE CAN BE ATTRIBUTED IN PART TO BRITISH TRAVELERS BEING A RESILIENT LOT AS ONE INDUSTRY OFFICIAL PUT IT BUT MUCH OF IT CAN ALSO BE ATTRIBUTED TO THE RESILIENCE OF BAA ITSELF A COMPANY THAT ENJOYS WARM RELATIONS WITH THE CITY OF LONDON BAA OPERATES SEVEN UK AIRPORTS YET HEATHROW MAKES UP 61 OF THE COMPANY'S OPERATING SALES AND 70 OF ITS OPERATING PROFIT THE REASON FOR BAA'S RESILIENCE IS SIMPLE DESPITE THE WORST RECESSION IN THE HISTORY OF THE WORLD'S AVIATION INDUSTRY THE COMPANY FORMERLY KNOWN AS BRITISH AIRPORTS AUTHORITY CLEARLY HAS FIGURED OUT HOW TO MAKE MONEY BAA CLAIMS TO BE THE WORLD'S BIGGEST INDEPENDENT AIRPORT GROUP BUT A LOOK AT ITS REVENUE FIGURES SHOWS THAT MOST OF ITS INCOME STEMS FROM RETAILING RATHER THAN TRADITIONAL AIRPORT ACTIVITIES SUCH AS LANDING FEES AND BY 1996 BAA PLANS TO DOUBLE THE AMOUNT OF SPACE DEVOTED TO SELLING PERFUMES CHOCOLATES AND OTHER GOODS RETAILING AT AIRPORTS USED TO BE A RIPOFF SAYS BAA'S CHIEF EXECUTIVE OFFICER SIR JOHN EGAN WE DRIVE OUT RETAILERS WHO DO NOT OFFER VALUE FOR MONEY IF THEY'RE NOT SATISFYING THE CUSTOMER THEN WE DON'T WANT THEM IT MAY SEEM A STRANGE WAY TO RUN AN AIRPORT BUT IT WORKS BAA'S PRETAX PROFIT GREW 49 TO 285 MILLION IN THE YEAR ENDED MARCH 31 1993 FROM 191 MILLION THE YEAR BEFORE AND ANALYSTS EXPECT A FURTHER SURGE OF ABOUT 10 TO ABOUT 315 MILLION IN THE YEAR THAT ENDS THIS MONTH THERE HAS BEEN A GENERAL TRANSFORMATION AT BAA UNDER SIR JOHN FROM BEING AN AIRPORT COMPANY TO BEING A RETAIL COMPANY SAYS RICHARD HANNAH AN ANALYST WITH UBS PHILLIPS & DREW TEN YEARS AGO THEY WOULD TALK ABOUT THE DEPTH OF CONCRETE AND LENGTH OF RUNWAYS NOW THEY TALK ABOUT THE SORT OF GOODS ON OFFER IT SHOULDN'T COME AS A SURPRISE SINCE HIS ARRIVAL AS CHIEF EXECUTIVE IN 1990 SIR JOHN HAS SET ABOUT DOING WHAT HE'S FAMOUS FOR TRANSFORMING COMPANIES AND INJECTING THEM WITH VIGOR IN THE 1980S SIR JOHN RESCUED BRITISH CAR MAKER JAGUAR PLC FROM THE BRINK OF BANKRUPTCY LED IT THROUGH PRIVATIZATION AND THEN IN 1989 OVERSAW ITS PURCHASE BY FORD MOTOR CO ALONG THE WAY HE EARNED A KNIGHTHOOD AND THE MONIKER ENGLAND'S LEE IACOCCA UNDER SIR JOHN'S DIRECTION BAA GAVE UP ITS EARLIER DIVERSIFICATION EFFORTS INTO HOTELS PROPERTY AND FREIGHT HANDLING THE FOCUS TURNED TO THE COMPANY'S CORE BUSINESSES OF SEVEN UK AIRPORTS THE THREE MAJOR LONDON AIRPORTS HEATHROW STANSTEAD AND GATWICK PLUS THE AIRPORTS AT EDINBURGH GLASGOW ABERDEEN AND SOUTHAMPTON TOGETHER THEY HANDLE 73 OF THE UK'S PASSENGER TRAFFIC SIR JOHN ALSO BROUGHT TO BAA AN OBSESSION WITH CUSTOMER SATISFACTION UNUSUAL AT MONOPOLY OR QUASIMONOPOLY BUSINESSES LIKE AIRPORTS IN HIS OFFICE IN DOWNTOWN LONDON HE DISPLAYS THE REAMS OF DATA HE RECEIVES EACH MONTH FROM THE COMPANY'S CONSTANT CUSTOMER SURVEYS THIS YEAR THEY WILL QUESTION ABOUT 120000 PASSENGERS ON EVERYTHING FROM AN AIRPORT'S SECURITY TO THE SELECTION AT DUTYFREE SHOPS BUT IT'S THE EMPHASIS ON RETAILING THAT HAS BEEN THE COMPANY'S MASTER STROKE BY GUARANTEEING THAT EVERYTHING SOLD AT A BAA AIRPORT STORE WILL BE PRICED AT OR BELOW THE PRICE IN REGULAR UK STORES AND BY ADVERTISING THE FACT THROUGHOUT THE COUNTRY THE COMPANY HAS BOOSTED SALES 9403160020 940316 COMMODITIES OIL PRICES JUMP AS DEMAND ESTIMATES EDGE UP AND NORTH SEA CRUDE OUTPUT IS EXPECTED TO SLIP BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL OIL PRICES ROSE YESTERDAY AS DEMAND PROJECTIONS INCREASED SLIGHTLY AND SUPPLIES OF NORTH SEA CRUDE OIL APPEARED TO TIGHTEN THE OPEC SECRETARIAT IN VIENNA RELEASED ESTIMATES INDICATING THAT THE CALL FOR CRUDE PRODUCED BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WOULD BE SLIGHTLY HIGHER THAN ANTICIPATED THROUGH THE REMAINDER OF THE YEAR IN FACT FIRSTQUARTER DEMAND HAS TURNED OUT TO BE 252 MILLION BARRELS DAILY 170000 BARRELS A DAY MORE THAN OPEC INITIALLY FORECAST AND THE NUMBER OF NORTH SEA CARGOES PRODUCED IS EXPECTED TO SHRINK BECAUSE MAINTENANCE SCHEDULES WILL FORCE THE CLOSURE OF A MAJOR PRODUCTION PLATFORM FORTYFIVE CARGOES OF NORTH SEA BRENT BLEND CRUDE ARE SCHEDULED TO BE LOADED IN APRIL DOWN FROM 51 CARGOES IN MARCH ACCORDING TO DOW JONES INTERNATIONAL PETROLEUM REPORT THE PRICE OF CRUDE OIL FOR APRIL DELIVERY INCREASED BY 34 CENTS A BARREL TO FINISH AT 1483 HEATING OIL AND GASOLINE PRICES ROSE AS WELL IN MODERATE ACTIVITY DESPITE THE BULLISH NEWS WARINESS OVER THE OUTCOME OF THE OPEC MEETING SCHEDULED FOR LATE NEXT WEEK STILL PERVADES THE MARKET AND IT IS LIKELY THAT PRICES WILL TRADE WITHIN A TIGHT RANGE UNTIL THE MEETING ENDS INDUSTRY ANALYSTS BELIEVE THAT THE MOST LIKELY ACTION BY OPEC WILL BE TO ROLL OVER ITS PREVIOUS AGREEMENT AND KEEP ITS OUTPUT CEILING AT 2452 MILLION BARRELS A DAY SUCH AN OUTCOME COULD CAUSE CRUDE PRICES TO ERODE TO 1250 A BARREL SAYS CYRUS TAHMASSEBI CHIEF ECONOMIST FOR ASHLAND INC BASED IN ASHLAND KY MR TAHMASSEBI WHO HAS WORKED OUT SEVERAL SCENARIOS THAT COULD OCCUR AT THE MEETING SAYS THAT IF NO AGREEMENT IS REACHED OIL PRICES COULD TUMBLE TO AS LOW AS 11 A BARREL A PACT TO CUT OUTPUT BY 1 MILLION TO 15 MILLION BARRELS DAILY COULD BOOST PRICES TO LEVELS AS HIGH AS 17 A BARREL BUT A CUT IS THE MOST UNLIKELY OUTCOME HE SAYS STATISTICS RELEASED AFTER TRADING YESTERDAY WILL LIKELY GIVE A BOOST TO OIL PRICES TODAY THE FIGURES COMPILED BY THE AMERICAN PETROLEUM INSTITUTE SHOW THAT WHILE DISTILLATE INVENTORIES GREW SLIGHTLY LAST WEEK GASOLINE AND CRUDE OIL STOCKS DECLINED THE DECLINE IN CRUDE SUPPLIES WHICH FELL BY 53 MILLION BARRELS WAS CONSIDERED ESPECIALLY SHARP IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS PRICES OF CORN AND SOYBEAN FUTURES CONTRACTS FELL AS TRADERS TOOK PROFITS ON MONDAY'S BIG RALLY IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MAY DELIVERY FELL 275 CENTS A BUSHEL TO SETTLE AT 28425 A BUSHEL THE SOYBEAN CONTRACT FOR AUGUST DELIVERY SLIPPED 05 CENTS A BUSHEL TO SETTLE AT 683 A BUSHEL PRICES WERE ALSO DEPRESSED BY A NATIONAL WEATHER SERVICE 30DAY FORECAST FOR BELOW AVERAGE PRECIPITATION IN SUCH WESTERN CORN BELT STATES AS MINNESOTA AND IOWA THE SOIL THERE IS SO SATURATED IN THE WAKE OF LAST YEAR'S RECORD FLOODS THAT FARMERS NEED A RELATIVELY DRY SPRING TO WORK IN THEIR FIELDS THE NATIONAL WEATHER SERVICE IS FORECASTING NORMAL PRECIPITATION IN SUCH EASTERN CORN BELT STATES AS INDIANA AND OHIO WHICH ESCAPED LAST YEAR'S EXCESSIVE RAINS TRADERS SAID GRAIN PRICES DIDN'T FALL FURTHER IN PART BECAUSE MANY FARMERS ARE RESISTING THE IMPULSE TO SELL WHAT LITTLE CROPS THEY HAVE REMAINING IN STORAGE AFTER LAST YEAR'S CROP DISASTER IN THE MIDWEST ACCORDING TO SOME TRADERS MANY OF THEIR FARMING CLIENTS ARE WAITING FOR THE CASH PRICE OF CORN TO HIT 3 A BUSHEL AND THE CASH PRICE OF SOYBEANS TO TOP 715 A BUSHEL PRECIOUS METALS FUTURES PRICES CONTINUED TO FIRM ON INDICATIONS THAT THE US ECONOMY REMAINS BOUYANT ECONOMIC STRENGTH PERSISTS AND THAT IS HELPING THE METALS SAYS STEPHEN PLATT FUTURES STRATEGIST FOR DEAN WITTER IN CHICAGO ECONOMIC DATA INCLUDING INDUSTRIAL PRODUCTION FIGURES RELEASED YESTERDAY SUGGEST A PRETTY STRONG BASE FOR PRECIOUS METALS DEMAND PARTICULARLY AS WE MOVE INTO THE SECOND QUARTER MR PLATT SAID THE SECOND QUARTER IS USUALLY BULLISH FOR METALS AS DEMAND TENDS TO IMPROVE ON A SEASONAL BASIS HE EXPLAINED ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR APRIL DELIVERY GAINED 40 CENTS TO SETTLE AT 38760 AN OUNCE WHILE SILVER FOR MAY DELIVERY EDGED UP 15 CENTS TO 5488 AN OUNCE THE GOLD MARKET IS BEING HELD BACK FROM SHARPER GAINS MR PLATT SAID BECAUSE OF ONGOING CONCERN OVER THE STRENGTH OF FAR EASTERN INVESTMENT DEMAND AT CURRENT PRICE LEVELS 9403160019 940316 ECONOMY WHITE HOUSE PUTS STRESS ON SKILLS FOR JOB SECURITY BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE CLINTON ADMINISTRATION IS TRYING TO TRANSFORM THE WAY PEOPLE THINK ABOUT JOB SECURITY AS A TWODAY JOBS CONFERENCE INVOLVING MINISTERS FROM THE GROUP OF SEVEN INDUSTRIALIZED NATIONS PULLED TO A CLOSE US OFFICIALS STRESSED THE IDEA THAT JOB SECURITY IS BASED ON THE SKILLS THAT WORKERS ACQUIRE NOT ON ENDURING RELATIONSHIPS WITH EMPLOYERS FOR GENERATIONS US WORKERS SAW THEIR JOBS AS BASED ON A LIFELONG COMMITMENT AND BOND WITH EMPLOYERS BUT FOLLOWING THE WRENCHING DECADE OF THE 1980S WITH ITS CORPORATE RESTRUCTURINGS AND WAVES OF CUTBACKS WHITE HOUSE OFFICIALS NOW ARE TRYING TO SHAKE WORKERS FROM THE VIEW THAT STAYING WITH ONE EMPLOYER OR HAVING ONE SET OF JOB SKILLS IS ENOUGH ADMINISTRATION OFFICIALS AND MINISTERS OF OTHER NATIONS APPEARED PLEASED WITH THE GIVEANDTAKE OF EMPLOYMENT IDEAS AT THE JOBS CONFERENCE THE NATIONS AGREED ON SUCH BROAD CONCEPTS AS THE NEED FOR INTERNATIONAL TRADE AS A JOB CREATOR AND THAT ALL INDUSTRIALIZED NATIONS MUST LIFT THE JOB SKILLS OF PEOPLE IN THEIR WORSTOFF SECTORS BUT THEY ALSO AGREED AS US TREASURY SECRETARY LLOYD BENTSEN SAID IN HIS SUMMARY THAT THERE IS NO SINGLE SOLUTION NO ONE IDEA OR ACTION THAT WILL WORK FOR EVERY COUNTRY THE CONFERENCE BROUGHT ECONOMIC FINANCE AND LABOR OFFICIALS FROM THE US JAPAN GERMANY BRITAIN CANADA FRANCE AND ITALY TO DISCUSS THE JOBS ISSUE BUT IT LARGELY WAS AIMED IN US OFFICIALS' EYES AT SKITTISH US WORKERS SO WHITE HOUSE AIDES HAMMERED HOME THE IDEAS OF FLEXIBILITY AND OPENNESS TO CHANGE THESE DAYS THE NEW DEFINITION OF JOB SECURITY IS ONE IN WHICH WORKERS ARE EQUIPPED TO HANDLE THE NEXT JOB IN A CHANGING ECONOMY SAID ROBERT RUBIN WHITE HOUSE ECONOMIC ADVISER SOME ADMINISTRATION OFFICIALS EVEN ARE TRYING TO STEER CLEAR OF THE PHRASE JOB SECURITY AND TO SWITCH INSTEAD TO EMPLOYMENT SECURITY SIMPLY PUT THAT MEANS HAVING SKILLS THAT ARE PORTABLE AND BENEFITS THAT ARE PORTABLE SAID LAWRENCE KATZ THE LABOR DEPARTMENT'S CHIEF ECONOMIST WORKER ACCEPTANCE OF THAT THEORY IS CRITICAL TO HELPING THE ECONOMY GROW AND ADAPT PRESIDENT CLINTON SAID IN A SPEECH MONDAY TO THE FOREIGN OFFICIALS WHO ATTENDED THE MEETING HERE IN PARTICULAR HE ARGUED WORKERS WON'T ACCEPT CHANGES THAT COME FROM TRADE AGREEMENTS PRODUCTIVITY GAINS AND TECHNOLOGICAL ADVANCES IF THEY AREN'T CONFIDENT THEY CAN GET NEW JOBS THAT IS THE TRICK THE PRESIDENT SAID WE'VE GOT TO PROVE TO OUR PEOPLE THAT CHANGE CAN WORK FOR THEM HE AND OTHER OFFICIALS ESTIMATED THAT THE AVERAGE AMERICAN WILL CHANGE JOBS SEVEN OR EIGHT TIMES IN HIS OR HER LIFETIME THE WHITE HOUSE HAS SET IN PLACE A STRING OF LEGISLATIVE PROPOSALS DESIGNED TO MAKE JOB TRANSITIONS EASIER HEALTHCARE REFORM FOR EXAMPLE IS AIMED IN PART AT NOT TYING PEOPLE'S HEALTH INSURANCE TO SPECIFIC JOBS AND THE WHITE HOUSE'S PROPOSED REEMPLOYMENT ACT INTRODUCED BY THE PRESIDENT LAST WEEK IS TARGETED AT HELPING FIRED WORKERS FIND WORK FASTER AND IMPROVING THE FEDERAL GOVERNMENT'S JOBTRAINING PROGRAMS 9403160017 940316 US BRITAIN REACH ACCORD ON OVERSIGHT OF OTC DERIVATIVES WASHINGTON THE TOP SECURITIES REGULATORS IN THE US AND BRITAIN AGREED ON A SET OF GOALS FOR IMPROVING OVERSIGHT OF OVERTHECOUNTER DERIVATIVES THE AGREEMENT SIGNED BY THE SECURITIES AND EXCHANGE COMMISSION THE COMMODITY FUTURES TRADING COMMISSION AND THE BRITISH SECURITIES AND INVESTMENT BOARD ALLOWS THE AGENCIES TO SHARE INFORMATION ABOUT SECURITIES AND FUTURES FIRMS USING OTC DERIVATIVES DERIVATIVES WHICH INCLUDE SWAPS OPTIONS AND FUTURES CONTRACTS ARE SPECIALIZED SECURITIES WHOSE VALUE DERIVES FROM UNDERLYING SECURITIES DERIVATIVES CAN BE TRADED ON EXCHANGES OR OVER THE COUNTER OTC TRANSACTIONS ARE NEGOTIATED BETWEEN TWO OR MORE PARTIES AND TAILORED TO FIT THE PARTIES' PARTICULAR HEDGING NEEDS THE AGREEMENT AMONG THE US AND BRITISH REGULATORS IS INTENDED TO ALLAY CONCERNS ABOUT THE GROWING DERIVATIVES MARKET AND ITS POTENTIAL IMPACT ON THE TRADITIONAL SECURITIES MARKET ANDREW LARGE CHAIRMAN OF THE BRITISH SECURITIES BOARD SAID OTC DERIVATIVES BUSINESS HAS BECOME A VITAL PART OF FINANCIAL AND COMMERCIAL LIFE SECURITIES AND FUTURES REGULATORS NEED TO BE CONFIDENT THAT THE RISKS INVOLVED ARE BEING ADEQUATELY ADDRESSED AT THE SAME TIME MR LARGE SAID WE DON'T WANT TO STIFLE INNOVATION OR TO OVERREGULATE PROFESSIONAL MARKETS AMONG OTHER THINGS THE AGREEMENT CALLS FOR THE THREE AGENCIES TO SEEK COMMON STANDARDS FOR NET CAPITAL AND MANAGEMENT AT FIRMS TRADING IN OTC DERIVATIVES THE AGENCIES ALSO SAID THEY WILL ENCOURAGE THE DEVELOPMENT OF ACCOUNTING STANDARDS FOR DERIVATIVES SO THAT THEY CAN BE RECOGNIZED ON THE BALANCE SHEETS OF SECURITIES AND FUTURES FIRMS 9403160016 940316 ECONOMY CALIFORNIA SEES SMALL SIGNS OF RECOVERY AS HOME BUILDERS MEET RISING DEMAND BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL NEWPORT BEACH CALIF THE COASTAL HILLS HERE OFFER SWEEPING VIEWS OF THE OCEAN AND OF A FLICKERING RECOVERY OF THE CALIFORNIA ECONOMY HOME BUILDERS FINALLY SEEING A RESURGENCE IN DEMAND AFTER A THREEYEAR SLUMP ARE RUSHING TO FINISH SUBDIVISIONS AND BUY LAND FEBRUARY NEWHOME SALES FOR THE SOUTHERN CALIFORNIA REGION ALMOST DOUBLED TO 2600 FROM 1400 A YEAR AGO IN A SCENE REMINISCENT OF THE GOGO 1970S AND LATE 1980S PEOPLE CAMPED OUT ON A WEDNESDAY RECENTLY FOR A SATURDAY OPENING OF A FIELDSTONE CO DEVELOPMENT HERE PEOPLE ARE STARTING TO REALIZE CALIFORNIA IS OUT OF ITS TROUGH SAYS FRANK FOSTER FIELDSTONE'S REGIONAL MANAGER WHILE ALMOST NO ONE EXPECTS A QUICK ROBUST RECOVERY FOR THE CALIFORNIA ECONOMY WHICH ACCOUNTS FOR ROUGHLY 10 TO 12 OF THE GROSS DOMESTIC PRODUCT THERE IS A GROWING CONSENSUS THAT A REALESTATE REBOUND IS LEADING A TURNAROUND THAT WILL BECOME MORE APPARENT NEXT QUARTER RESIDENTIAL CONSTRUCTION WILL BE THE SECTOR THAT WILL LEAD CALIFORNIA OUT OF THE RECESSION SAID STEPHEN LEVY DIRECTOR OF THE CENTER FOR THE CONTINUING STUDY OF THE CALIFORNIA ECONOMY IN PALO ALTO IT COULD MAKE '94 A GROWTH YEAR RATHER THAN A FLAT YEAR IT'S THE SECTOR THAT CAN PRODUCE A SIZABLE NUMBER OF NEW JOBS TO OFFSET THE DEFENSE DECLINES THE STATE IS ALSO BEING AIDED BY A HIGHTECH BOOM IN NORTHERN CALIFORNIA WHICH NEVER SUFFERED MUCH FROM THE RECESSION TO BEGIN WITH AND A GRADUAL GROWTH IN JOBS AND RETAIL SALES THE RECENT SPATE OF FIRE EARTHQUAKE AND FLOOD HAS STIMULATED THE REGIONAL ECONOMY GIVING BIRTH TO A BOOMING REPAIR INDUSTRY INDEED THE UCLA BUSINESS FORECASTING PROJECT RECENTLY ADVANCED ITS ESTIMATE ON A CALIFORNIA TURNAROUND TO THE SECOND QUARTER FROM THE THIRD BECAUSE OF THE STIMULUS OF EARTHQUAKE RELIEF EVERYTHING POINTS TO A RECOVERY THAT IF IT HASN'T BEGUN WILL BEGIN IN THE NEXT QUARTER OR SO SAID NANCY BOLTON A DEMOGRAPHER AT THE PROJECT THE PAINFUL FREE FALL IN HOME AND LAND PRICES SINCE 1989 LAID THE GROUND FOR THE REALESTATE RECOVERY WHILE LOWPRICED HOMES DIDN'T SEE MUCH PRICE CUTTING MORE EXPENSIVE ONES FELL BY AS MUCH AS A THIRD IN VALUE THE PRICE OF RAW LAND DROPPED BY AS MUCH AS HALF ALLOWING BUILDERS TO PUT UP CHEAPER HOMES THESE TRENDS COMBINED WITH A HISTORIC FALL IN MORTGAGE RATES INCREASED THE NUMBER OF CALIFORNIA HOUSEHOLDS WHO COULD AFFORD THE MEDIANPRICED HOME TO 42 FROM 17 FIVE YEARS AGO EXISTINGHOME SALES HAVE GROWN IN THE REGION OVER YEARAGO LEVELS FOR EIGHT CONSECUTIVE MONTHS ALTHOUGH THEY ARE STILL RUNNING AT ABOUT TWOTHIRDS OF THE PEAK YEARS IN THE LATE 1980S BUT THE BIGGEST BOOST IS COMING FROM THE SURGE IN NEWHOME CONSTRUCTION WHICH PRODUCES A LOT OF ECONOMIC RIPPLE EFFECTS SUCH AS ORDERS FOR CARPET COMPANIES APPLIANCE MAKERS AND LANDSCAPE FIRMS THE FEBRUARY INCREASE OF ABOUT 1200 NEWHOME SALES PUMPS NEARLY AN ADDITIONAL 200 MILLION INTO THE REGIONAL ECONOMY THE FEW OF US WHO ARE LEFT ARE VERY HAPPY SAID IRA NORRIS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT INCO HOMES CORP WHICH HAS SEEN ITS MARKET SHARE LEAP 26FOLD IN THE LAST FIVE YEARS AS MANY OF ITS COMPETITORS HAVE GONE OUT OF BUSINESS THE BLEEDING IS OVER HE ADDED BUILDERS EXPECT HOME AND LAND PRICES TO SOON START TO REVERSE THEIR LONG SLIDE KAUFMAN & BROAD HOME CORP WHICH IS THE LARGEST BUILDER IN THE STATE WITH ABOUT AN 8 MARKET SHARE IS RAISING PRICES 2 TO 3 THROUGHOUT CALIFORNIA THIS MONTH TOLL BROTHERS INC A LARGE EAST COAST BUILDER SNAPPED UP A STALLED 160LOT DEVELOPMENT IN YORBA LINDA IN ORANGE COUNTY TWO YEARS AGO ON THE CHEAP AND SAW THE PROJECT'S SALES EXPLODE THIS JANUARY ROBERT I TOLL CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID HE WAS EXPECTING TO SELL ONE HOME A MONTH BUT INSTEAD PEDDLED NINE IN NINE DAYS BASED ON EARLY SIGNS OF INTEREST AND BUYERS WHO WANTED MORE EXPENSIVE MODELS THE COMPANY JACKED THE AVERAGE SELLING PRICE UP TO 550000 FROM THE 450000 IT HAD ORIGINALLY EXPECTED TO ASK DALLASBASED CENTEX CORP WHICH ALREADY BUILDS HERE MADE A MAJOR LAND PURCHASE THAT ENDED A BIDDING WAR OVER A 915LOT SITE IN FOOTHILL RANCH IN ORANGE COUNTY A NUMBER OF OUTFITS VIED FOR THE PROPERTY WHICH SHOT UP IN PRICE TO ABOUT 45 MILLION FROM 30 MILLION WITH CENTEX JUST EDGING OUT KAUFMAN & BROAD DEL WEBB CORP A PHOENIX DEVELOPER OF SENIOR HOUSING RECENTLY HIRED AWAY THE TOP MANAGEMENT OF AN ORANGE COUNTY BUILDER AS A PRELUDE TO ENTERING THE CALIFORNIA RESIDENTIAL MARKET THE COMPANY HIRED THE EXECUTIVES OF MEEKER COS A COSTA MESA BUILDER TO HEAD A NEW SUBSIDIARY THAT INTENDS TO START CONSTRUCTING SINGLEFAMILY HOMES THIS YEAR ROCKEFELLER & ASSOCIATES REALTY IN SAN FRANCISCO SIGNED A PARTNERSHIP WITH AKINS COS AN IRVINE BUILDER TO DO THE SAME YOU'RE GOING TO SEE MORE OF THAT SAID JACK RODMAN MANAGING PARTNER AT KENNETH LEVENTHAL & CO IN LOS ANGELES MR RODMAN SAID AN OUTOFSTATE CONCERN RECENTLY OFFERED CASH FOR A PARCEL IN RIVERSIDE COUNTY OWNED BY A JAPANESE CLIENT OF HIS THE JAPANESE COMPANY PAID 95000 PER LOT AND LOST 30000 ON PAPER BEFORE THE LAND CLIMBED 10000 IN THE LAST YEAR TO 75000 THE OWNER ISN'T INTERESTED IN SELLING MY JAPANESE CLIENTS ARE SAYING THEY'RE GOING TO BUILD ON IT HE SAID SOME ECONOMISTS CAUTION THAT THERE ARE BIG CONSTRAINTS ON A FASTER OR WIDER REALESTATE RECOVERY COMMERCIAL CONSTRUCTION FOR EXAMPLE IS STILL MORIBUND INGO WINZER EDITOR OF THE LOCAL MARKET MONITOR WHICH TRACKS REAL ESTATE IN MAJOR CITIES SAID THAT ALL BUILDING PERMITS IN THE STATE FELL 13 LAST YEAR FROM THE PREVIOUS YEAR AND WERE STILL DOWN 11 IN JANUARY MOSTLY IN SOUTHERN CALIFORNIA SINGLEFAMILY PERMITS ROSE 5 THAT MONTH 9403160015 940316 INTERNATIONAL JAPAN'S BANKS FORESEE RELATIVELY FAST ENTRY INTO SECURITIES LINES TOKYO JAPANESE BANKS MAY MAKE A FASTERTHANEXPECTED ENTRY INTO ALL PARTS OF THE SECURITIES BUSINESS A SENIOR OFFICIAL OF DAIICHI KANGYO BANK LTD SAID EVERYBODY SAYS IT MAY BE 10 TO 20 YEARS BEFORE THE SECURITIES AFFILIATES OF JAPANESE BANKS ARE ALLOWED TO WORK IN THE SECONDARY MARKET FOR EQUITIES SAID MAKOTO FUJIMAKI VICE PRESIDENT OF DKB'S SECURITIES DIVISION BUT IT MAY BE JUST FIVE YEARS THE TREND OF DEREGULATION IS IN THE MARKET NOW AND THINGS MOVE FASTER THAN PEOPLE THINK JAPAN'S LARGE COMMERCIAL BANKS ARE EXPECTED TO ENTER THE SECURITIES BUSINESS BETWEEN THIS JULY AND MARCH 1995 AT FIRST THE GOVERNMENT WILL LIMIT SECURITIES AFFILIATES TO UNDERWRITING CORPORATE BONDS AND DEALING IN GOVERNMENT BONDS WHICH MR FUJIMAKI SAID WILL LIMIT THE PROFITABILITY OF DKB'S SECURITIES AFFILIATE THE MINISTRY OF FINANCE HAS PRIVATELY URGED BANKS' SECURITIES AFFILIATES TO TURN A PROFIT WITHIN THREE YEARS A TARGET MR FUJIMAKI SAID WILL BE HARD TO ACHIEVE THE BUSINESS ISN'T THAT PROFITABLE HE SAID GIVEN DKB'S LARGE NATIONWIDE BRANCH NETWORK HE SAID WE'D LIKE TO DO RETAIL BUSINESS THE DKB OFFICIAL NOTED HOWEVER THAT THE SECURITIES AFFILIATES OF BOTH LONGTERM CREDIT BANK OF JAPAN LTD AND INDUSTRIAL BANK OF JAPAN LTD MAY SEE A PROFIT AS EARLY AS THE FISCAL YEAR ENDING THIS MONTH AS A RESULT OF A RUNUP IN BOND PRICES IN LATE 1993 THE PROFIT THEY'RE EARNING IS MUCH MORE THAN EXPECTED HE SAID BUT WITH LONGTERM INTEREST RATES RISING SO FAR IN 1994 THE TIMING MAY NOT BE SO GOOD FOR DKB'S AFFILIATE TO MATCH THE FEAT MR FUJIMAKI SAID 9403160014 940316 WHO'S NEWS PPG INDUSTRIES TAPS LEBOEUF TO MANAGE KEY BUSINESS GROUP PITTSBURGH RAYMOND W LEBOEUF A PRIME CONTENDER FOR PPG INDUSTRIES INC'S TOP POST WAS NAMED GROUP VICE PRESIDENT OF THE COMPANY'S KEY COATINGS AND RESINS BUSINESS IN A MOVE THAT GIVES HIM VITAL EXPERIENCE MR LEBOEUF 47 FORMERLY CHIEF FINANCIAL OFFICER SUCCEEDS RICHARD M ROMPALA ONCE CONSIDERED A CONTENDER FOR THE COMPANY'S TOP POST MR ROMPALA LEFT THE GLASS CHEMICAL AND COATINGS PRODUCER TO CHOOSE FROM WHAT HE SAID WERE A FEW OFFERS BY OTHER COMPANIES MR ROMPALA SAID IT JUST CAME TIME TO TRY TO EXPLORE HIS OTHER OPTIONS BOTH MEN WERE CONSIDERED CANDIDATES FOR THE POST OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER TO SUCCEED VINCENT A SARNI WHO RETIRED LAST SUMMER BUT AT THE TIME THE BOARD CONSIDERED THE CANDIDATES INEXPERIENCED AND TAPPED OUTSIDER JERRY E DEMPSEY THE CHAIRMAN OF CHEMICAL WASTE MANAGEMENT INC THE BOARD SAID THEN THAT MR DEMPSEY'S APPOINTMENT WAS A TRANSITION MOVE GIVING UNNAMED INTERNAL CANDIDATES TIME TO GAIN EXPERIENCE MR DEMPSEY 61 IS EXPECTED TO RETIRE WHEN HE REACHES 65 ANALYSTS SAID THE MOVE STRENGTHENS MR LEBOEUF'S CHANCES FOR THE COMPANY'S TOP POST WHILE RESPECTED AS A FINANCIAL EXECUTIVE HE LACKED EXPERIENCE RUNNING ONE OF PPG'S THREE MAIN BUSINESSES COATINGS AND RESINS GLASS AND CHEMICALS HE JOINED THE COMPANY AS TREASURER IN 1980 WAS ELECTED CONTROLLER IN 1984 AND BECAME VICE PRESIDENT OF PURCHASING IN 1986 PPG SAID IT IS SEARCHING BOTH INSIDE AND OUTSIDE THE COMPANY FOR A NEW CHIEF FINANCIAL OFFICER THE OTHER MAIN INTERNAL CANDIDATES ARE ROBERT D DUNCAN 54 GROUP VICE PRESIDENT OF GLASS AND PETER R HEINZE 51 GROUP VICE PRESIDENT OF CHEMICALS 9403160013 940316 NET INCOME OF BANKS JUMPED TO RECORD FOR FOURTH QUARTER WASHINGTON COMMERCIALBANK EARNINGS JUMPED TO 1112 BILLION IN THE FOURTH QUARTER OF LAST YEAR A RECORD FOR THE QUARTER THE FEDERAL DEPOSIT INSURANCE CORP REPORTED THE FOURTHPERIOD EARNINGS WERE BUOYED BY IMPROVEMENTS IN THE PERFORMANCE OF BANKS' CORE LOAN BUSINESS THE FDIC SAID THEY WERE THE SECOND HIGHEST FOR ANY QUARTER IN BANKING HISTORY TOPPED ONLY BY PROFITS OF 1145 BILLION IN THE 1993 THIRD QUARTER NET INCOME OF THE NATION'S 10957 COMMERCIAL BANKS WAS A RECORD 4343 BILLION FOR ALL OF 1993 OR 36 HIGHER THAN THE PREVIOUS RECORD EARNINGS OF 32 BILLION IN 1992 FOURTHQUARTER EARNINGS CLIMBED SHARPLY FROM 776 BILLION A YEAR EARLIER THE INDUSTRY'S RETURN ON ASSETS FOR 1993 WAS 121 THE FIRST TIME SINCE THE FDIC WAS CREATED IN 1933 THAT BANKS HAD A RETURN OF MORE THAN 1 FOR A FULL YEAR THEIR RETURN ON ASSETS IN THE FOURTH QUARTER WAS ALSO 121 DOWN FROM 127 IN THE THIRD QUARTER BUT TOPPING A 089 RETURN IN THE 1992 FOURTH QUARTER THE FDIC ATTRIBUTED THE RECORD EARNINGS TO AN IMPROVED ECONOMY FAVORABLE INTEREST RATES FOR BANKS AND BANKS' EFFORTS TO BOLSTER THEIR FINANCIAL CONDITION TOTAL LOANS AND LEASES OUTSTANDING AT YEAR END ROSE 58 FROM A YEAR AGO TO 21 TRILLION GROWTH IN CONSUMER AND RESIDENTIALMORTGAGE LOANS MAINLY FUELED THE INCREASE AND LOANS OUTSTANDING TO BUSINESSES ROSE 05 AFTER A THREEYEAR DECLINE THE FDIC SAID THE NATION'S 2264 SAVINGS BANKS AND SAVINGSANDLOAN INSTITUTIONS EARNED 181 BILLION IN THE FOURTH QUARTER UP 19 FROM 152 BILLION A YEAR EARLIER IN ALL OF 1993 THE THRIFTS HAD RECORD PROFITS OF 7 BILLION A 42 RISE FROM 672 BILLION IN 1992 9403160012 940316 ECONOMY PRODUCER PRICES INCREASED 05 DURING FEBRUARY RISE FROM JANUARY REFLECTS JUMP IN ENERGY PRICES LINKED TO COLD WEATHER BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE UNUSUALLY COLD WEATHER THIS WINTER PUSHED UP THE DEMAND AND PRICES FOR HOME HEATING FUEL LAST MONTH BUT WHOLESALE INFLATION OVERALL APPEARED TO BE WELLBEHAVED THE LABOR DEPARTMENT SAID PRODUCER PRICES IN FEBRUARY JUMPED 05 FROM JANUARY WHEN THEY ROSE A MORE MODERATE 02 IT WAS THE LARGEST INCREASE IN 10 MONTHS BUT MUCH OF IT WAS DUE TO HIGHER ENERGY PRICES WHICH SOARED 28 THE PRICE OF FUEL USED FOR HOME HEATING SHOT UP 235 BUT FOOD PRICES FELL 04 DURING THE MONTH AND EXCLUDING THE VOLATILE FOOD AND ENERGY SECTORS PRODUCER PRICES ROSE A FAR SMALLER 01 A SLOWER PACE THAN JANUARY'S 04 RISE ANALYSTS EXPECT THE DEPARTMENT'S CONSUMER PRICE INDEX SCHEDULED TO BE RELEASED TODAY TO SHOW SIMILAR RESULTS IN ANOTHER ECONOMIC REPORT THE FEDERAL RESERVE SAID INDUSTRIAL PRODUCTION INCREASED BY 04 IN FEBRUARY FOLLOWING A 05 GAIN THE MONTH BEFORE ANALYSTS SAID LAST MONTH'S INCREASE WAS STRONGER THAN EXPECTED GIVEN THE CONTINUED BAD WEATHER MUCH OF THE INCREASE WAS THE RESULT OF HIGHER AUTO LIGHTTRUCK AND COMPUTER PRODUCTION AT THE NATION'S FACTORIES UTILITY OUTPUT DROPPED FROM THE BIG WEATHERRELATED SURGE IN JANUARY AS A RESULT OF THE OVERALL INCREASED OUTPUT INDUSTRIAL OPERATIONS CREPT UP TO 834 OF CAPACITY FROM 833 IN JANUARY AND WERE CLOSE TO A FIVEYEAR HIGH MANY ANALYSTS SAID THE INDUSTRIAL PRODUCTION AND PRODUCER PRICE FIGURES TAKEN TOGETHER SHOW THAT INFLATION IS STILL NOT A PROBLEM DESPITE INCREASING ECONOMIC ACTIVITY WHILE AUTO AND TRUCK OUTPUT BOTH INCREASED BY MORE THAN 8 DURING FEBRUARY FOR INSTANCE THE PRICE OF CARS MODERATED IN FEBRUARY AND LIGHTTRUCK PRICES ACTUALLY FELL AT THE WHOLESALE LEVEL THERE ARE NO PRICE PRESSURES EVIDENT AT THE PLACES WHERE ACTIVITY HAS BEEN PICKING UP SAID SAMUEL KAHAN CHIEF ECONOMIST OF FUJI SECURITIES INC IN CHICAGO THERE ARE STILL CONTINUING PRICE INCREASES AT THE CRUDE LEVEL HOWEVER WHILE CRUDE PRICES DROPPED 13 LAST MONTH WHEN FOOD AND ENERGY ARE EXCLUDED THEY JUMPED 20 AFTER A 16 RISE IN JANUARY CRUDE PRICES MAKE UP VERY LITTLE OF WHAT CONSUMERS ACTUALLY PAY FOR GOODS HOWEVER AND MANY ANALYSTS DON'T EXPECT THE INCREASES TO GET TO THE CONSUMER LEVEL INTERMEDIATE GOODS MINUS FOOD AND ENERGY FOR INSTANCE WERE UNCHANGED LAST MONTH DESPITE CONTINUED INCREASES IN CRUDE PRICES I DEFINITELY DON'T SEE THIS BUBBLING UP TO THE RETAIL LEVEL SAID STUART HOFFMAN CHIEF ECONOMIST OF PNC BANK CORP IN PITTSBURGH ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR FEBRUARY BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM FEBRUARY 1993 HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN FEBRUARY THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR FEBRUARY STOOD AT 1151 OF THE 1987 AVERAGE 9403160011 940316 WHO'S NEWS ZALE NAMES DINICOLA CHAIRMAN FILLING POST OF OUSTED GROUSSMAN DALLAS ROBERT J DINICOLA 46 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF THE NATION'S LARGEST JEWELRY CHAIN OPERATOR MR DINICOLA THE CHAIRMAN AND CHIEF EXECUTIVE OF THE BON MARCHE DIVISION OF FEDERATED DEPARTMENT STORES INC WILL JOIN ZALE APRIL 18 ZALE HAS BEEN WITHOUT A PERMANENT CHAIRMAN AND CHIEF EXECUTIVE SINCE ITS BOARD OUSTED DEAN GROUSSMAN LAST AUGUST WITHIN DAYS OF THE COMPANY'S EMERGENCE FROM CHAPTER 11 REORGANIZATION ANDREAS LUDWIG PREVIOUSLY THE COMPANY'S CHIEF FINANCIAL OFFICER SERVED AS INTERIM CHIEF EXECUTIVE FROM AUGUST UNTIL HIS DEPARTURE IN JANUARY TO BECOME MANAGING DIRECTOR OF TYROLIT INDUSTRIES A HEAVYINDUSTRY MANUFACTURER OWNED BY AUSTRIA'S SWAROVSKI INTERNATIONAL HOLDING AG MR DINICOLA WHO SPENT A DECADE AT RH MACY & CO BEFORE JOINING FEDERATED IN 1989 HAS NO JEWELRY EXPERIENCE BUT THAT IS LESS OF A CONCERN SINCE THE APPOINTMENT IN DECEMBER OF LARRY POLLOCK A LONGTIME JEWELRY EXECUTIVE AS PRESIDENT AND CHIEF OPERATING OFFICER MR DINICOLA CREDITED WITH REPOSITIONING THE DEPARTMENT STORE CHAIN AND STRONGLY INCREASING SALES HAD BEEN CONSIDERED A CANDIDATE TO SUCCEED CHAWIM Y EDELSTEIN AS CHIEF EXECUTIVE OF FEDERATED'S LARGEST DEPARTMENT STORE DIVISION ABRAHAM & STRAUSS/JORDAN MARSH BUT WITHIN A WEEK OF MR EDELSTEIN'S RESIGNATION IN LATE JANUARY FORMER RH MACY EXECUTIVE HAROLD KAHN WAS NAMED TO THAT POST MR DINICOLA COULDN'T BE REACHED BUT IN A WRITTEN STATEMENT HE SAID HE LOOKS FORWARD TO WORKING WITH MR POLLOCK WHO WILL PARTNER WITH ME IN GUIDING ZALE IN THE UPCOMING YEARS 9403160010 940303 REVIEW & OUTLOOK EDITORIAL CLINTON'S FRENCH BUREAUCRATS YES WE KNOW THE CLINTON ADMINISTRATION IS PROBUSINESS MADE UP OF MARKET SAVVY PROS LIKE ROBERT RUBIN AND ROGER ALTMAN TEKKIES LIKE AL GORE AND GLOBALMARKET GURUS LIKE ROBERT REICH IT'S BEEN A TEMPTING AND ALLURING SCENARIO ON DAYS WHEN IT HAS BEEN POSSIBLE TO PUT THIS ADMINISTRATION IN THE BEST LIGHT ONE HAS WANTED TO BELIEVE BUT THE COLLAPSE LAST WEEK OF THE BELL ATLANTICTCI MERGER IN THE WAKE OF SOME THROWBACK RATE REGULATION BY THE FCC PUNCHES A BIG HOLE WELL ANOTHER BIG HOLE IN THE FACADE THE CLINTONITES LIKE MARKETS BUT IN ABOUT THE SAME WAY THAT FRENCH BUREAUCRATS HAVE ALWAYS LIKED MARKETS IN A STRONG EMBRACE ONLY PEOPLE WITH THE MIND OF A FRENCH BUREAUCRAT WOULD AS AL GORE'S FCC DID MANDATE A 7 REDUCTION IN CABLE RATES SMACK IN THE MIDDLE OF BELL ATLANTIC'S OFFER OF SOME 16 BILLION FOR THE COUNTRY'S LARGEST CABLE SYSTEM OPERATOR AS THE JOURNAL REPORTED BELL ATLANTIC CEO RAY SMITH TOOK ONE LOOK AT THE RATECUT ANNOUNCEMENT AS IT WAS BROADCAST ON CSPAN AND KNEW THE DEAL WAS IN TROUBLE NOW WE SUPPOSE THAT REED HUNDT THE FORMER ST ALBAN'S CLASSMATE THAT MR GORE RECRUITED FROM A BELTWAY LAW FIRM TO BE FCC CHAIRMAN WOULD ARGUE THAT THE FATE OF TWO MEDIA MEGATRONS MANEUVERING AROUND THE PRICE OF A STOCK DEAL CAN'T BE THE IMMEDIATE CONCERN OF AN INDEPENDENT REGULATORY BODY INDEED MR GORE CAME TO HIS PROTEGE'S DEFENSE AMID THE RUBBLE AS EVERYONE KNOWS VERY WELL THEY WERE ON THE ROCKS AND LOOKING FOR A REASON TO CALL IT OFF THAT'S A PRETTY WEAK DEFENSE IT IS PROBABLE IF NOT CERTAIN THAT RAY SMITH AND TCI'S JOHN MALONE WOULD HAVE FOUND A WAY TO COMPLETE THE MERGER DESPITE DECLINES IN THEIR COMPANIES' SHARE PRICES HAD NOT THE FCC RUN UP TO HIT THE CABLE INDUSTRY'S CASH FLOW IN THE KNEES WITH A CLUB WE FEAR THE CLINTONITES JUST DON'T GET IT IN FACT WE HAVE FCC CHAIRMAN HUNDT'S WORD FOR IT THAT HE TRULY DOESN'T GET IT IN AN INTERVIEW PUBLISHED IN YESTERDAY'S JOURNAL MR HUNDT SAID WE UNDERSTAND THE INDUSTRY AND DON'T WANT TO HURT IT BUT WE DON'T WANT CABLE COMPANIES TO USE THEIR CURRENT CONSUMERS TO INVEST IN TOMORROW'S SERVICES FORTUNATELY THE HUNDTGORE VIEW OF HOW CAPITALISM WORKS IS LIMITED SO FAR TO REGULATING THE TELECOMMUNICATIONS INDUSTRY HEALTH AND MEDICINE ARE ON THE DRAWING BOARD UNFORTUNATELY IT'S ONE OF THE MOST IMPORTANT PIECES OF THE MODERN AMERICAN ECONOMY THOUGH IN MANY WAYS ARCANE THE TELECOMMUNICATIONS INDUSTRY MESMERIZES THE POPULAR MIND BECAUSE IT IS SO QUINTESSENTIALLY MODERN ITS SUCCESS DEPENDS CRUCIALLY ON BEING FAST FLEXIBLE AND SMART BOTH TECHNOLOGICALLY AND CORPORATELY THE CLINTONITES PURPORT TO UNDERSTAND THE RHYTHMS OF THE MODERN ECONOMY BUT WE DOUBT YOU CAN EVER GET THE RUMBA OUT OF BORN REGULATORS THE GORES AND HUNDTS MAY FEEL THEY'RE ONLY BEING CAUTIOUS ABOUT GREAT UNPREDICTABLE CHANGE BUT COMPARE THEIR KIND OF CAUTION WITH THAT OF GATEWAY 2000 CEO TED WAITT MR WAITT WAS QUOTED IN MONDAY'S JOURNAL AS BEING AMONG THOSE COMPUTER MANUFACTURERS WHO DOUBT THAT THE INFORMATION HIGHWAY WILL RUN VIA HOME TV SETS BUT HE'S GOT ONE WALL OF HIS OFFICE COVERED WITH A MATRIX OF THE ENDLESS INDUSTRY ALLIANCES TAKING SHAPE ALONG THE HIGHWAY WHEN REALITY OR ECONOMICS DEMANDS A SHIFT TED WAITT WILL LIKELY MAKE THE RIGHT TURN AND FAST BY COMPARISON THE CLINTON FCC FACED WITH A SIMILAR DECISIVE MOMENT LURCHES TO DILUTE AN ENTIRE INDUSTRY'S CASH FLOW FORMER CARTER ADMINISTRATION REGULATOR ALFRED KAHN WROTE HERE TUESDAY THAT IT SHOULD BE POSSIBLE TO REGULATE THE BABY BELLS FORWARD TO AN ERA OF FULL COMPETITION BE THAT AS IT MAY WE DON'T SEE ANY ALFRED KAHNS AT THE REGULATORY SWITCHES IN WASHINGTON NOW WHICH IS TO SAY PEOPLE WHO IN FACT UNDERSTAND HOW MODERN CORPORATIONS ACTUALLY FUNCTION IN THE MARKETPLACE INSTEAD WE HEAR THEORIES WE HEAR SPEECHES AND WE HEAR PROMISES OF MARKETORIENTED POLICYMAKING IN THE REAL WORLD THE DAY AFTER THE BELL ATLANTICTCI MERGER COLLAPSED WE WATCHED A NERVOUS MARKET GO OFF NEARLY 52 POINTS WHATEVER THE CLINTON REGULATORY PHILOSOPHY ACTUALLY IS IT DOESN'T INSPIRE CONFIDENCE SEE RELATED LETTER LETTERS TO THE EDITOR SHAREHOLDERS KILLED TCIBELL MERGER WSJ MARCH 16 1994 9403030044 YY94 MM03 9403160009 940316 MICHIGAN MEASURE TO RAISE SALES TAX HEADING FOR VICTORY DETROIT PROPONENTS OF SCHOOL FINANCING REFORM WERE UPBEAT YESTERDAY IN MICHIGAN WHERE A STATEWIDE REFERENDUM PROPOSAL CALLING FOR A SALES TAX INCREASE SEEMED HEADED FOR PASSAGE BASED ON EARLY VOTING RETURNS MICHIGAN VOTERS HAD TO VOTE ON THE 102 BILLION TAX PACKAGE AFTER GOV JOHN ENGLER PASSED LEGISLATION LAST JULY THAT WIPED AWAY FUTURE USE OF LOCAL PROPERTY TAXES FOR PUBLIC SCHOOL FINANCING THE MOVE CREATED A NATIONAL STIR AND A 7 BILLION SHORTFALL FOR GOV ENGLER THAT HE HAS SINCE SAID COULD BE ADDRESSED WITH AN INCREASE IN THE SALES TAX TO 6 FROM 4 WITH 10 OF THE PRECINCTS REPORTING 172184 PEOPLE OR 72 HAD VOTED IN FAVOR OF THE PROPOSAL AND 67849 PEOPLE OR 28 AGAINST IT THE MEASURE ALSO CALLED FOR CUTTING THE STATE'S INCOME TAX TO 44 FROM 46 I THINK WE ARE GOING TO WIN SAID GOV ENGLER WHO PITTED THE PROPOSAL AGAINST A MANDATORY ALTERNATIVE THAT WOULD HAVE RAISED THE STATE'S INCOME TAX TO 6 FROM 46 AND WOULD HAVE RAISED TAXES ON BUSINESSES IT GIVES US A TAX PROFILE NOW THAT ALLOWS US TO BE VERY COMPETITIVE NATIONALLY HE SAID CRITICS HOWEVER SAID THE SALES TAX BOOST WOULD PROBABLY STILL FALL SHORT OF FULLY FUNDING THE STATE'S PUBLIC SCHOOL SYSTEM INDEED OPPONENTS OF THE GOVERNOR'S INITIATIVE CLAIMED HIS PLAN WAS UNDERFUNDED BY AS MUCH AS 12 BILLION THE STATE WILL EITHER HAVE TO RAISE OTHER TAXES OR CUT OTHER SERVICES THAT CITIZENS REQUIRE SAID JULIUS MADDOX PRESIDENT OF THE MICHIGAN EDUCATION ASSOCIATION THE TEACHERS GROUP THAT WAS PART OF AN OPPOSITION MOVEMENT THAT INCLUDED TOBACCO INTERESTS THE GOVERNOR'S MEASURE KNOWN HERE AS PROPOSAL A WOULD INCLUDE AN INCREASE IN CIGARETTE TAXES IF THE MEASURE PASSES IT WOULD BE THE FIRST SALES TAX INCREASE APPROVED BY MICHIGAN VOTERS AFTER FIVE REJECTIONS DATING BACK TO 1978 SEVEN OTHER PLANS ADDRESSING SCHOOL FINANCING AND PROPERTY TAXES HAVE ALSO FAILED IN THE STATE SINCE 1972 9403160008 940316 WORK & FAMILY BY SUE SHELLENBARGER THERE ARE A SIGNIFICANT MINORITY OF BUSINESSES THAT AREN'T COMPLYING WITH THE FEDERAL FAMILYLEAVE LAW A STUDY FINDS AMONG 300 EMPLOYERS SURVEYED BY CONSULTANT WILLIAM M MERCER AND THE UNIVERSITY OF CALIFORNIA AT BERKELEY 86 EITHER AREN'T GUARANTEEING THE JOBS OF PEOPLE WHO TAKE LEAVES OR ARE LETTING MANAGERS DECIDE WHETHER THE WORKERS GET THEIR JOBS BACK JOB GUARANTEES ARE A CORE PROVISION OF THE LAW WHICH AS OF LAST AUGUST MANDATES UP TO 12 WEEKS OF UNPAID LEAVE FOR CHILDBIRTH OR THE ILLNESS OF ONESELF OR A FAMILY MEMBER ANOTHER 10 OF EMPLOYERS SURVEYED SAY THEY WON'T CONTINUE HEALTH BENEFITS THROUGH LEAVES THOUGH IT IS MANDATED BY THE LAW AND 5 SAY THEY LIMIT LEAVES TO LESS THAN 12 WEEKS THE EXTENT OF NONCOMPLIANCE WAS A SURPRISE TO ME SAYS JANICE STANGER A MERCER CONSULTANT IN SAN FRANCISCO IN ANOTHER SIGN OF TROUBLE MORE THAN HALF SAY THEY WON'T DEVELOP AN APPEAL PROCEDURE TO RESOLVE FAMILYLEAVE DISPUTES THIS COULD LEAD TO SIGNIFICANT PROBLEMS BECAUSE IT IS THE DISPUTED CASES THAT ARE LIKELY TO LEAD TO PROBLEMS AND GO TO COURT MS STANGER SAYS RESPONSE TO THE LAW MAY BE FALLING SHORT PARTLY BECAUSE EMPLOYERS ARE SWAMPED BY NEW EMPLOYEERELATED LEGISLATION MORE THAN 20 OF COMPANIES SURVEYED SAID THEY HAVEN'T YET WRITTEN POLICIES ON FAMILY LEAVE BUT PLAN TO COULD THE ORGANIZATION MAN BE EVOLVING INTO MR MOM NOT LIKELY BUT A GROWING BODY OF RESEARCH SUGGESTS MANY MALE PROFESSIONALS WISH FOR A BETTER BALANCE BETWEEN WORK AND FAMILY AND GET FRUSTRATED WHEN EMPLOYERS DON'T RECOGNIZE THAT DESIRE IN A RECENT ARTICLE IN HARVARD BUSINESS REVIEW MICHAEL KIMMEL AN ASSOCIATE PROFESSOR OF SOCIOLOGY AT STATE UNIVERSITY OF NEW YORK AT STONY BROOK CLAIMS THAT A NEW ORGANIZATION MAN HAS EMERGED ONE WHO WANTS TO BE AN INVOLVED FATHER WITH NO LOSS OF INCOME PRESTIGE AND CORPORATE SUPPORT AND NO DIMINISHED SENSE OF MANHOOD BASED ON A SUMMARY OF RECENT RESEARCH DR KIMMEL SAYS FEW MEN FIT STEREOTYPES OF THE DISTANT FATHER AND WORKOBSESSED BREADWINNER AMID CORPORATE DOWNSIZING MEN ARE NO LONGER ABLE TO COUNT ON CAREER FOR SELFFULFILLMENT OR EVEN FINANCIAL SECURITY AND THE RISE IN WORKING WOMEN HAS BROUGHT MEN CLOSER TO THEIR CHILDREN THUS TODAY'S ORGANIZATION MAN CARRIES A BRIEFCASE WHILE PUSHING A BABY CARRIAGE HE SAYS YET MOST COMPANIES HAVEN'T CAUGHT UP WITH THE CHANGE AND PRESSURE MEN TO HIDE THEIR PARTICIPATION AT HOME A MAN FOR INSTANCE IS MORE LIKELY TO CALL IN SICK AFTER A BABY IS BORN THAN TO TAKE PARENTAL LEAVE UNLESS CORPORATIONS MAKE FAMILY INVOLVEMENT EASIER THEY WILL LOSE THEIR BEST AND BRIGHTEST MEN DR KIMMEL PREDICTS WHILE THE EVIDENCE IS ANECDOTAL THE ARTICLE ECHOES FINDINGS BY OTHER RESEARCHERS A NATIONAL STUDY BY THE FAMILIES AND WORK INSTITUTE A NONPROFIT RESEARCH AND CONSULTING FIRM IN NEW YORK FOUND MANAGERS AND PROFESSIONALS THE KINDS OF WORKERS IN THE KIMMEL STUDY WERE MORE DISSATISFIED WITH THE AMOUNT OF TIME SPENT AT WORK THAN OTHER KINDS OF WORKERS SAYING THEY WANTED TO SPEND 88 LESS TIME AT THE OFFICE COMPARED WITH 58 FOR OTHERS CHARLES RODGERS PRESIDENT OF RODGERS & ASSOCIATES A UNIT OF CONSULTANT WORK/FAMILY DIRECTIONS SAYS HE HEARS AN INCREASING DEGREE OF FRUSTRATION FROM MEN IN FOCUS GROUPS MR RODGERS RECALLS A COMPUTERFIRM MANAGER SAYING WITH CONSIDERABLE ANGER THAT HE BEGAN HIS 10HOUR WORK DAY AT 7 AM IN ORDER TO COACH HIS SONS' LITTLE LEAGUE TEAM IN THE EVENING BUT HIS BOSS REPROACHED HIM FOR LEAVING EARLY A GOOD MANY MEN HAVE DECIDED THEY DON'T WANT TO BE THE KIND OF FATHERS THEIR FATHERS WERE BUT THERE'S ABSOLUTELY NO RECOGNITION OF THAT FACT BY MOST EMPLOYERS MR RODGERS SAYS AT THE SAME TIME THINGS HAVE GOTTEN MORE PRESSURED AND UNSTABLE AT WORK LEADING MEN TO KEEP QUIET THE RESULT MANY MEN ARE SILENTLY FRUSTRATED HE SAYS THE CLINTON ADMINISTRATION'S WORKFAMILY GURU TACKLES THE HIGH COST OF CHILD CARE FAITH WOHL A FORMER DUPONT HUMAN RESOURCES EXECUTIVE WHO LED THE CHEMICAL MAKER IN SETTING UP EARLY WORKFAMILY PROGRAMS WAS HIRED IN LATE 1993 TO HELP TURN THE GENERAL SERVICES ADMINISTRATION WHICH PROVIDES SERVICES TO TWO MILLION FEDERAL WORKERS INTO A MODEL OF FAMILYFRIENDLINESS THE GSA RUNS 92 OF THE NATION'S APPROXIMATELY 350 NONMILITARY EMPLOYERSPONSORED CHILDCARE CENTERS AND PLANS TO OPEN 40 MORE IN ITS FIRST PUBLIC REPORT ON ITS CHILDCARE OPERATIONS WHICH SERVE BOTH FEDERAL AND PRIVATESECTOR WORKERS THE GSA SAID LAST WEEK THAT IT HAS IMPROVED PROGRAM QUALITY AND CUT TEACHER TURNOVER BY RAISING PAY BUT AFFORDABILITY IS A PROBLEM SAYS MS WOHL WHO HEADS THE GSA'S OFFICE OF WORKPLACE INITIATIVES TUITION AT GSA CENTERS AT 46 TO 121 A WEEK IS TOO HIGH FOR MANY FAMILIES GSA HOPES TO PROVIDE MODELS TO HELP PRIVATE EMPLOYERS SOLVE THE AFFORDABILITY PROBLEM IT IS CONSIDERING USING PROCEEDS FROM ITS RECYCLING PROGRAM TO SUBSIDIZE TUITION GSA IS TEACHING FUNDRAISING SKILLS TO CENTER STAFF AND DIRECTORS AS WELL AS COLLABORATING WITH PRIVATE EMPLOYERS TO SHARE COSTS THE HIGH COST OF QUALITY CHILD CARE IS A BIG ISSUE THE WHOLE COUNTRY FACES MS WOHL SAYS THE TUPPERWARE PARTY GETS A '90S LOOK FROM A CONCORD MASS MARKETER OF KIDS' EDUCATIONAL SOFTWARE CONSULTANTS FOR BRIGHTIDEAS SELL SOFTWARE AT HOME PARTIES AS WELL AS COMPANIES AND SCHOOLS THREEFOURTHS OF ITS SALESPEOPLE ARE FORMERLY EMPLOYED PROFESSIONAL PARENTS LOOKING FOR JOB FLEXIBILITY TROY MICH BOASTS THE ONLY CHAMBER OF COMMERCE TO OFFER MEMBERS MANAGER TRAINING IN WORKFAMILY ISSUES AND REFERRALS ON CHILD AND ELDER CARE DUPONT KMART SATURN AND OTHER MEMBERS ALSO WORK TOGETHER ON FLEXIBLE SCHEDULING AND SICK CHILD CARE 9403160007 940316 POLITICS & POLICY CUOMO HOPES FOR WEAK RIVAL IN GOVERNOR'S RACE IN NEW YORK AND GOP MAY HAVE JUST THE TICKET BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN IT COMES TO FINDING A CANDIDATE TO TAKE ON MARIO CUOMO THIS YEAR NEW YORK REPUBLICANS SEEM HELLBENT TO PROVE THE OLD CHESTNUT THAT SAYS YOU CAN'T BEAT SOMEBODY WITH NOBODY THE 62YEAROLD GOVERNOR IS SLUMPING BADLY IN THE POLLS AS HE PREPARES TO SEEK HIS FOURTH FOURYEAR TERM TO LEAD THIS BRAWLING CONTENTIOUS STATE BUT THE REPUBLICANS HAVE AN ENTIRE FIELD OF SQUALLING NOBODIES HOPING TO TAKE ON MR CUOMO WHO IN NEW YORK IF NO LONGER IN THE NATION IS STILL SOMEBODY LET'S NOT DISCOURAGE THEM IN THEIR DISARRAY THE GOVERNOR SAYS IT'S DEJA VU ALL OVER AGAIN IN 1990 DESPERATE TO FIND A CANDIDATE TO TAKE ON MR CUOMO THE GOP STATE CHAIRMAN COMBED THROUGH A FRIEND'S ADDRESS BOOK HE GOT TO R AND OUT POPPED PIERRE RINFRET AN ECONOMICS CONSULTANT WHO TURNED OUT TO BE THE SOLE REPUBLICAN WILLING TO MAKE WHAT COULD ONLY CHARITABLY BE DESCRIBED AS A RUN THOUGH MR CUOMO MANAGED JUST 53 OF THE VOTE THE GOP CANDIDATE WAS THRASHED BARELY BEATING THE CONSERVATIVE PARTY CANDIDATE THIS SHOULD BE THE GOP'S BIG YEAR THE LATEST MARIST COLLEGE INSTITUTE FOR PUBLIC OPINION POLL PUTS MR CUOMO'S APPROVAL RATING AT 356 AN ALLTIME LOW LAST TIME HE RAN HIS WEAKNESS CAME AS A SURPRISE SAYS LEE MIRINGOFF THE MARIST POLL TAKER THIS TIME THE REPUBLICANS HAVE NO EXCUSES A YEAR AGO THEIR BEST CANDIDATE SEEMED TO BE THE STATE'S TOP JUDGE SOL WACHTLER BUT HE WAS SENT TO JAIL FOR THREATENING TO KIDNAP HIS FORMER LOVER'S DAUGHTER THE NEXTBEST HOPE WAS SEN ALFONSE D'AMATO BUT MR D'AMATO SAYS I'M TOO BUSY IN WASHINGTON I CAN'T TAKE THE TIME THAT LEAVES THE FIELD OF DREAMS GOV CUOMO SAYS HE HAS AN IDEA OF WHAT THE REPUBLICANS HAVE BEEN LOOKING FOR TO OPPOSE HIM A CATHOLIC WITH GREAT PERSONAL WEALTH AND AN EAGERNESS TO SPEND A LOT OF IT FOR THE CAMPAIGN AND A WILLINGNESS TO OPPOSE HIS OR HER OWN CHURCH BY SUPPORTING BOTH ABORTION RIGHTS AND THE DEATH PENALTY I DON'T KNOW HOW YOU DO THAT SIMULTANEOUSLY SAYS THE GOVERNOR WHO IS ALSO ROMAN CATHOLIC HE OPPOSES THE DEATH PENALTY AND PERFORMS DEEP PUBLIC SOULSEARCHING ON THE ABORTION QUESTION THE GOVERNOR'S ANALYSIS ISN'T FAR OFF THE MARK FROM THEIR FOCUS GROUPS AND PRIVATE POLLS REPUBLICAN LEADERS REALLY DID HAVE IN MIND SUCH A CANDIDATE THEY ALSO WANTED HIM OR HER TO FAVOR TAX CUTS AND COME FROM THE SUBURBS THE LEADERS TALKED ON THE PHONE AND EVEN HAD A HIDEAWAY DINNER AT AN ITALIAN RESTAURANT ON LONG ISLAND IN THEIR EFFORTS TO FIND THAT CANDIDATE WE GAVE IT A GOODFAITH EFFORT SAYS SEN D'AMATO THE PRINCIPAL KINGMAKER WE JUST COULDN'T COME TO AN AGREEMENT THE RESULT IS THAT THEY'VE DRIFTED BACK TO THE POSITIONS THEY HELD BEFORE THE TALKS SEN D'AMATO AND PARTY CHAIRMAN WILLIAM POWERS ONCE HIS CHIEF OF OPERATIONS ARE ONCE AGAIN BOOSTING AN OBSCURE STATE SENATOR NAMED GEORGE PATAKI THE FORMER MAYOR OF PEEKSKILL THE POWERFUL GOP LEADER IN THE STATE SENATE RALPH MARINO STILL SAYS MR PATAKI IS UNACCEPTABLE HE THREATENS TO ENDORSE HIS OWN CANDIDATE WHOSE IDENTITY REMAINS A MYSTERY IF THAT WEREN'T CONFUSING ENOUGH A NUMBER OF OTHER CANDIDATES ARE ALREADY OUT THERE CAMPAIGNING THEY INCLUDE FORMER AMBASSADOR TO FRANCE EVAN GALBRAITH FORMER STATE PARTY CHAIRMEN J PATRICK BARRETT THE MAN WHO DISCOVERED MR RINFRET AND RICHARD ROSENBAUM AND HERBERT LONDON A PROFESSOR AT NEW YORK UNIVERSITY AND THE 1990 CONSERVATIVE CANDIDATE ALL OF THEM INSIST THEY'LL TAKE THE FIGHT TO A PARTY CONVENTION IN LATE MAY AND IF THAT DOESN'T WORK TO A PRIMARY ELECTION IN SEPTEMBER I'M NOT SURE THAT'S A GOOD IDEA SAYS MR POWERS THE CHAIRMAN FOR THE REPUBLICAN KINGMAKERS THE FRUSTRATION IS THAT THEY'VE COME A LONG WAY SINCE THE 1990 DISASTER RINFRET WAS THE LOW POINT ALL RIGHT SAYS MR POWERS AFTER THAT CAMPAIGN WE PUT TOGETHER A HOSTILE TAKEOVER OF WHAT WAS LEFT OF THE STATE PARTY HE SAYS THAT WHEN HE SEIZED POWER IN EARLY 1991 HE FOUND THAT ONLY 137 PEOPLE HAD CONTRIBUTED TO THE PARTY IN THE PRECEDING 12 MONTHS SINCE THEN HE'S PRETTY MUCH PUT THE PARTY BACK TOGETHER NO MEAN ACCOMPLISHMENT MORE THAN 58000 PEOPLE CONTRIBUTED TO THE PARTY LAST YEAR MANY OF THEM TAKING PART IN THE DIME A DAY TO DEFEAT MARIO CAMPAIGN THE STATE PARTY PLAYED A KEY ROLE IN ELECTING RUDOLPH GIULIANI MAYOR OF NEW YORK REPUBLICANS ALSO WON KEY ELECTIONS IN SYRACUSE BINGHAMTON AND TROY AND EVEN TOOK OVER ALBANY COUNTY IN THE GOVERNOR'S BACKYARD FOR THE FIRST TIME IN 75 YEARS IN SEN PATAKI MR POWERS AND SEN D'AMATO HAVE A CANDIDATE WHO MEETS SOME OF THE QUALIFICATIONS THEY LAID DOWN FOR THIS YEAR'S CUOMO CHALLENGE THE 48YEAROLD MR PATAKI MAY NOT BE WEALTHY BUT HE IS CATHOLIC AND HE SUPPORTS ABORTION RIGHTS IN A LIMITED WAY AND FAVORS THE DEATH PENALTY HE'S A WONDERFUL YOUNG MAN SAYS MR D'AMATO HE'S GOT GUTS AND INDEPENDENCE AND HE'S VOTED AGAINST ALL OF CUOMO'S BUDGETS NO SURPRISE HE'S ALSO STRONG ON CUTTING TAXES WHICH WON HIM THE SUPPORT OF A NEW YORK CITY SUPPLYSIDE GROUP CALLED CHANGENY THAT BOTHERS MR MARINO THE STATE SENATE LEADER WHO HAS BEEN A TARGET OF CHANGENY'S IRE A FAIR NUMBER OF CONSERVATIVES MANY OF WHOM SOMETIMES BOLT TO THE CONSERVATIVE PARTY IN ELECTION YEARS AREN'T EXACTLY EXCITED ABOUT MR PATAKI EITHER THEY WORRY ABOUT HIS ABORTIONRIGHTS STANCE AL D'AMATO HIMSELF IS PROLIFE SAYS MR LONDON THE 1990 CONSERVATIVE CANDIDATE AND WOULDBE 1994 GOP NOMINEE TRYING TO FORCE PATAKI DOWN OUR THROATS IS BIZARRE WHAT THE REPUBLICANS WANT TO AVOID AT ALL COSTS IS ANOTHER SITUATION WHEN THEY FIELD ONE CANDIDATE THE CONSERVATIVES FIELD ANOTHER AND MR CUOMO SQUEEZES OUT STILL ANOTHER VICTORY MR LONDON INSISTS THE CONSERVATIVE NOMINATION IS HIS FOR THE ASKING AND HE SAYS HE WILL TAKE IT IF THE REPUBLICANS TRY TO RALLY AROUND MR PATAKI OR ANY OTHER ABORTIONRIGHTS SUPPORTER BUT MIKE LONG THE CONSERVATIVE PARTY'S CHAIRMAN STILL HOPES TO WORK SOMETHING OUT WITH THE REPUBLICANS WE HAVE LOTS OF TIME AND WE DON'T WANT TO MAKE UP OUR MINDS TOMORROW MORNING HE SAYS MR POWERS IS HOPEFUL TOO WE AGREE WITH THE CONSERVATIVES ON 90 OF THE ISSUES WE CAN WORK THIS OUT FOR MR POWERS AND HIS REINVIGORATED REPUBLICANS THERE'S NO MISTAKING THE MAIN PRIZE IT'S MARIO HE SAYS I'VE MOUNTED HIS PHOTO ON MY OFFICE WALL I LOOK AT HIM ALL THE TIME IT KEEPS ME FOCUSED HE WANTED TO MOUNT A SECOND CUOMO PHOTO IN HIS BEDROOM HE SAYS BUT HIS WIFE PUT HER FOOT DOWN 9403160006 940316 MARKETING & MEDIA VIACOM NAMES TEAM TO CONSOLIDATE ASSETS OF PARAMOUNT AND BLOCKBUSTER BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK VIACOM INC EMBARKING ON THE DAUNTING TASK OF COMBINING THREE COMPANIES ANNOUNCED A TRANSITION MANAGEMENT TEAM THAT WILL CONSOLIDATE THE ASSETS OF RECENTLY ACQUIRED PARAMOUNT COMMUNICATIONS INC AND THOSE OF BLOCKBUSTER ENTERTAINMENT CORP AFTER THE COMPLETION OF VIACOM'S SEPARATE MERGER WITH BLOCKBUSTER VIACOM SAID THE TRANSITION TEAM WILL INCLUDE TWO OF ITS EXECUTIVES AND ONE FROM PARAMOUNT ALL OF WHOM WILL REPORT TO VIACOM PRESIDENT AND CHIEF EXECUTIVE FRANK BIONDI 49 YEARS OLD VIACOM GENERAL COUNSEL PHILIPPE P DAUMAN 40 WILL BECOME EXECUTIVE VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER WHILE THOMAS E DOOLEY 37 WHO HEADS VIACOM'S CORPORATE DEVELOPMENT WILL BECOME EXECUTIVE VICE PRESIDENT OF FINANCE CORPORATE DEVELOPMENT AND COMMUNICATIONS AS REPORTED PARAMOUNT CHAIRMAN MARTIN DAVIS AND PRESIDENT STANLEY JAFFE WILL LEAVE THEIR EXECUTIVE POSTS THOUGH MR DAVIS IS WORKING INFORMALLY ON THE MANAGEMENT TRANSITION A PARAMOUNT SPOKESMAN SAID PARAMOUNT'S FORMAL REPRESENTATIVE ON THE TRANSITION TEAM IS RONALD L NELSON 41 EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WHETHER HE WILL HAVE A LONGERTERM ROLE AT THE MERGED COMPANIES AND WHAT IT WILL BE HAVEN'T BEEN DETERMINED THOUGH VIACOM EXECUTIVES SAY THEY WANT TO KEEP HIM AT THE COMPANY THE BLOCKBUSTER MERGER IS EXPECTED TO BE VOTED ON BY ITS SHAREHOLDERS IN MAY IF IT IS COMPLETED BLOCKBUSTER PRESIDENT AND CHIEF OPERATING OFFICER STEVEN R BERRARD 39 WILL JOIN THE TRANSITION TEAM VIACOM WHICH ACQUIRED PARAMOUNT FOR NEARLY 10 BILLION AFTER A FIVEMONTH BIDDING CONTEST WITH QVC INC IS SWALLOWING TWO COMPANIES CONSIDERABLY LARGER THAN ITSELF PARAMOUNT HAS SOME 12500 EMPLOYEES TO VIACOM'S 5000 BLOCKBUSTER MEANWHILE HAS CLOSE TO 40000 EMPLOYEES MOSTLY IN ITS RETAIL STORES NATIONWIDE THOUGH VIACOM OFFICIALS DECLINE TO DISCUSS LAYOFFS WALL STREET ANALYSTS EXPECT THE COMPANY NOW HEAVILY LADEN WITH DEBT TO SHARPLY CUT STAFFING LEVELS IN SUCH AREAS AS TELEVISION DISTRIBUTION WHERE THE THREE COMPANIES COMBINED HAVE FOUR DIFFERENT OVERLAPPING UNITS JOHN TINKER AN ANALYST AT FURMAN SELZ SAID HE EXPECTS VIACOM MANAGEMENT TO TAKE 250 MILLION IN PRETAX RESTRUCTURING CHARGES THAT INCLUDE STAFF CUTBACKS IN CORPORATE AND OPERATIONS AREAS DURING THE BIDDING CONTEST FOR PARAMOUNT VIACOM'S ADVISERS AT SMITH BARNEY SHEARSON SAID VIACOM EXPECTED ANNUAL COST SAVINGS OF 200 MILLION AT THE MINIMUM FROM AMONG OTHER THINGS ELIMINATION OF DUPLICATE TELEVISION PRODUCTION DISTRIBUTION AND SALES AND SAVINGS ON OVERHEAD AND ADMINISTRATION COSTS SPECULATION ABOUT CUTBACKS AND EXECUTIVE CHANGES HAS BEEN RAMPANT AT PARAMOUNT'S HOLLYWOOD STUDIO WHERE MR BIONDI AND VIACOM CHAIRMAN SUMNER REDSTONE RECENTLY HAD A WEEK OF INTENSIVE MEETINGS LATER AT THE ANNUAL GATHERING OF THEATRICAL EXHIBITORS IN LAS VEGAS PARAMOUNT PICTURES STUDIO CHIEF SHERRY LANSING MADE REFERENCE IN A SPEECH TO THE TURMOIL THE STUDIO HAS ENDURED RECENTLY FOLLOWING HER AT THE PODIUM MR REDSTONE TOLD THE AUDIENCE THE TURMOIL IS JUST BEGINNING MR DAUMAN AND OTHERS AT PARAMOUNT WHO ATTENDED THE SESSION SAID MR REDSTONE'S REMARKS WERE MADE IN A JESTING MANNER AND NOTED THAT MR REDSTONE WENT ON TO MAKE A NUMBER OF POSITIVE REMARKS ABOUT THE STUDIO MR BIONDI TOLD THE SAME GATHERING THAT MS LANSING AND HER MOTION PICTURE TEAM IS OUR TEAM AND HE SAID YESTERDAY THAT MS LANSING HAS AGREED TO STAY ON STILL UNCLEAR IS WHETHER VIACOM WILL NAME AN EXECUTIVE TO OVERSEE PARAMOUNT'S ENTERTAINMENT OPERATIONS WHICH INCLUDE THE STUDIO TV OPERATIONS THEATRICAL EXHIBITION THEME PARKS AND MADISON SQUARE GARDEN MR BIONDI DECLINED TO COMMENT ALTHOUGH HE ACKNOWLEDGED THE COMPANY IS EXAMINING THAT OPTION 9403160005 940316 INDUSTRY FOCUS LONGDISTANCE PHONE MEASURE IS CREATING SOME STATIC CARRIERS WANT CONGRESS TO ADD TOUGH RULES TO BILL OPENING MARKET TO BELLS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LONGDISTANCE TELEPHONE COMPANIES ARE SCRAMBLING TO PERSUADE CONGRESS TO ADD TOUGH CONDITIONS TO A BILL THAT WOULD OPEN THE WAY FOR THE BELL TELEPHONE COMPANIES TO ENTER LUCRATIVE NICHES OF THE LONGDISTANCE MARKET LONGDISTANCE CARRIERS RANGING FROM AMERICAN TELEPHONE & TELEGRAPH CO TO SOME 400 OR 500 SMALL COMPANIES FEAR THAT TWO PROVISIONS IN THE LEGISLATION WOULD CRIPPLE COMPETITION AND KILL DOZENS OF THE INDUSTRY'S SMALLEST COMPANIES ONE WOULD LET THE BELLS OFFER INTRASTATE LONGDISTANCE SERVICE THE OTHER WOULD AUTHORIZE THE REGIONAL PHONE COMPANIES TO OFFER NATIONWIDE LONGDISTANCE SERVICE TO THEIR LOCAL CUSTOMERS BY BUYING AND RESELLING SERVICES OF AT&T AND OTHER LONGDISTANCE CARRIERS THE HOUSE LEGISLATION MEANS I WILL ESSENTIALLY BE OUT OF BUSINESS WITHIN A YEAR BECAUSE THERE IS NO WAY I CAN COMPETE AGAINST THE LOCAL BELL COMPANY FRETS DENNIS MIGA OWNER OF MATRIX TELECOM INC FORT WORTH TEXAS KATHRYN HAYCOCK PRESIDENT OF CALLAMERICA A MESA ARIZ CARRIER WHOSE REVENUE TOTALS JUST 4 MILLION A YEAR ADDS WE DON'T HAVE THE ADVERTISING BUDGETS OR MARKETING STRENGTH TO WITHSTAND COMPETITIVE PRESSURE FROM A BELL COMPANY THE BIG LONGDISTANCE CARRIERS AT&T MCI COMMUNICATIONS CORP AND SPRINT CORP ALSO ARE CONCERNED AL MCGANN A FORMER AT&T EXECUTIVE WHO NOW HEADS THE LONGDISTANCE COALITION SAYS THE LEGISLATION AS WRITTEN COULD HURT THE WHOLE INDUSTRY THE BILL A COMPROMISE BETWEEN HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D MICH AND HOUSE JUDICIARY COMMITTEE CHAIRMAN JACK BROOKS D TEXAS IS EXPECTED TO CLEAR BOTH PANELS TODAY EXCEPT FOR THE TWO PROVISIONS THE LONGDISTANCE CARRIERS SUPPORT THE BILL BECAUSE IT WOULD KEEP THE BELLS OUT OF THE 60 BILLION LONGDISTANCE BUSINESS FOR MANY YEARS IT WOULD AUTHORIZE THE SEVEN REGIONAL BELL COMPANIES TO APPLY FOR AUTHORITY TO OFFER LONGDISTANCE SERVICE BUT THEY WOULD HAVE TO WAIT FIVE YEARS TO DO SO AND BEFORE GRANTING THEIR APPLICATIONS THE JUSTICE DEPARTMENT AND THE FEDERAL COMMUNICATIONS COMMISSION WOULD HAVE TO FIND NO SUBSTANTIAL POSSIBILITY THAT THE BELLS COULD USE THEIR LOCAL TELEPHONE MONOPOLY POWER TO IMPEDE COMPETITION IN THE LONGDISTANCE MARKET HOWEVER THE BILL WOULD LET STATE REGULATORS DECIDE WHEN THE BELLS COULD SELL INTRASTATE LONGDISTANCE SERVICE AND BELLS COULD BEGIN RESELLING LONGDISTANCE COMPANIES' SERVICES IN THEIR AREAS ALMOST IMMEDIATELY TOLLCALL BUSINESS THE RESELLING PROVISION COMES WITH A CATCH ALTHOUGH THE BILL'S LANGUAGE IS IMPRECISE THE BELLS APPARENTLY COULDN'T RESELL LONGDISTANCE SERVICES UNLESS LONGDISTANCE COMPANIES ALSO CAN COMPETE WITH THEM FOR TOLLCALL BUSINESS THAT IS SERVICE WITHIN CERTAIN GEOGRAPHIC AREAS KNOWN AS LOCAL ACCESS TRANSPORT AREAS ONE SUCH AREA INCLUDES LOS ANGELES AND ANAHEIM CALLS BETWEEN THOSE CITIES ARE CARRIED BY PACIFIC BELL BUT CALLS BETWEEN LOS ANGELES AND SAN FRANCISCO CROSS A BOUNDARY AND ARE CARRIED BY LONGDISTANCE COMPANIES CALLS WITHIN LOCAL ACCESS AREAS REPRESENT A 15 BILLION MARKET ROUGHLY THE SAME SIZE AS THE LONGDISTANCE INDUSTRY'S INTRASTATE MARKET DESPITE THE LONGDISTANCE COMPANIES' LOBBYING EFFORTS THE TWO PROVISIONS ARE LIKELY TO REMAIN IN THE HOUSE BILL BUT THE SENATE VERSION INTRODUCED BY SENATE COMMERCE COMMITTEE CHAIRMAN ERNEST F HOLLINGS D SC WOULD KEEP THE BELLS ENTIRELY OUT OF THE LONGDISTANCE BUSINESS UNLESS THEY PROVE THEY CAN'T ABUSE THEIR MARKET POWER IF THE PROVISION IS WATERED DOWN MR HOLLINGS RECENTLY WARNED THERE WON'T BE A BILL LONGDISTANCE CARRIERS CONTEND THAT SO LONG AS THE BABY BELLS CONTROL CONNECTIONS BETWEEN LONGDISTANCE CARRIERS AND THEIR CUSTOMERS THE COMPETITION WON'T BE FAIR ESPECIALLY FOR SMALL CARRIERS THAT RESELL SERVICE FROM AT&T MCI AND SPRINT THE LOCAL PHONE COMPANY KNOWS WHO MY BEST CUSTOMERS ARE HOW MUCH THEY SPEND AND WHERE THEY CALL MR MIGA SAYS COULD ANY MONOPOLY RESIST CHERRY PICKING MR MIGA GIVES THE LOCAL PHONE COMPANIES HIS SENSITIVE BUSINESS DATA SO THAT THEY CAN SEND BILLS TO MATRIX'S CUSTOMERS ALONG WITH REGULAR MONTHLY PHONE BILLS THE LONGDISTANCE INDUSTRY SAYS THE BELLS SHOULDN'T BE ALLOWED INTO EITHER THE RESALE OR INTRASTATE LONGDISTANCE MARKETS UNTIL A LARGE NUMBER OF BELL CUSTOMERS HAVE A CHOICE OF PROVIDERS OF LOCAL TELEPHONE SERVICE MOREOVER THE LONGDISTANCE COALITION WANTS LAWMAKERS TO REQUIRE THE BELLS TO OFFER LONGDISTANCE SERVICE ONLY THROUGH SEPARATE UNITS THAT MUST PAY THE SAME FEES TO COMPLETE CALLS THAT THE BELLS CHARGE THEIR COMPETITORS AND THE COALITION SAYS THE BELLS SHOULD BE BARRED FROM USING SENSITIVE CUSTOMER DATA IN THEIR MARKETING EFFORTS THE BELL COMPANIES ARGUE THE LONGDISTANCE INDUSTRY NEEDS MORE COMPETITORS AND THE TWO PROVISIONS WOULD HELP ACCOMPLISH THAT GOAL MCI AND SPRINT AREN'T BIG ENOUGH TO CHECK AT&T'S MARKET POWER ASSERTS PHILIP QUIGLEY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PACIFIC BELL A UNIT OF PACIFIC TELESIS GROUP THE LONGDISTANCE INDUSTRY IS CHARACTERIZED BY UMBRELLA PRICING WITH THE MAJOR CARRIERS MOVING THEIR PRICES IN LOCKSTEP MR QUIGLEY TESTIFIED AT A RECENT HEARING THE SOLUTION HE SAYS IS TO LET SEVEN NATURAL COMPETITORS OF AT&T ENTER THE MARKET THE BELLS ALSO ARGUE THAT THEY NEED THE NEW LINE OF BUSINESS BECAUSE OF MOUNTING COMPETITION IN THEIR OWN BACKYARD THEY CURRENTLY HAVE WELL OVER 90 OF THE LOCAL TELEPHONE BUSINESS IN THEIR REGIONS BUT BY ALL COUNTS COMPETITION COULD BECOME FIERCE OVER THE NEXT FEW YEARS ESPECIALLY IF CONGRESS PASSES A SEPARATE BILL THAT WOULD CLEAR THE WAY FOR TELEPHONE AND CABLETV COMPANIES TO COMPETE HEAD TO HEAD MR QUIGLEY OF PACIFIC BELL TOLD LAWMAKERS THAT SOME 2 BILLION A YEAR WILL BE UP FOR GRABS ONCE CALIFORNIA CUSTOMERS CAN SELECT LONGDISTANCE CARRIERS TO HANDLE THEIR TOLL CALLS MOST CUSTOMERS HE BELIEVES WOULD CHOOSE THEIR REGULAR LONGDISTANCE CARRIERS ABANDONING PACIFIC BELL THAT COULD HAVE BROAD IMPLICATIONS IF THE BELLS CAN'T ENTER THE LONGDISTANCE FIELD HE SAYS BECAUSE THE HIGH PROFITMARGIN TOLL BUSINESS SUBSIDIZES THE COST OF LOCAL RESIDENTIAL SERVICE AS THE BILL ADVANCES THE INDUSTRY'S SMALLEST PLAYERS SEE AN OPPORTUNITY AS WELL AS A THREAT BUYOUTS BY THE BELLS FOR EXAMPLE LCI INTERNATIONAL INC WHICH HAS EXTENSIVE MIDWEST OPERATIONS MIGHT BE ATTRACTIVE TO AMERITECH THE CHICAGOBASED BABY BELL WE'RE NOT TERRIBLY HAPPY ABOUT THIS SAYS ASHOK RAO CHAIRMAN OF THE TELECOMMUNICATIONS RESELLERS ASSOCIATION AND OF MIDCOM COMMUNICATIONS INC SEATTLE I'M NOT SO SURE IT WILL BE GOOD FOR OUR CUSTOMERS SMALL TO MEDIUMSIZED BUSINESSES THAT GET BILLING SERVICES AND PERSONAL ATTENTION FROM US THAT THE BIG COMPANIES DON'T OFFER WE JUST WANT THE OPPORTUNITY TO CONTINUE DANCING BENEATH THE ELEPHANT'S FEET 9403160004 940316 CLINTON REJECTS BID FOR AD MADE WITH HEALTH GROUP WASHINGTON PRESIDENT CLINTON TURNED DOWN AN OFFER BY THE HEALTH INSURANCE ASSOCIATION OF AMERICA TO COPRODUCE A TELEVISION COMMERCIAL WITH THE WHITE HOUSE EMPHASIZING AREAS OF AGREEMENT ON HEALTHCARE REFORM THE TRADE GROUP HAS SPENT 10 MILLION ON THE HARRY AND LOUISE ADS THAT ARE HARSHLY CRITICAL OF THE CLINTON HEALTH PROPOSAL BUT IT HAS SOFTENED ITS TONE MARKEDLY IN RECENT DAYS IN A LETTER TO BILL GRADISON THE ASSOCIATION'S PRESIDENT MR CLINTON SAID IT WAS HEARTENING TO HEAR THAT THE ASSOCIATION SAYS IT'S IN FAVOR OF SOME MAIN PARTS OF THE ADMINISTRATION PROPOSAL UNIVERSAL COVERAGE A COMPREHENSIVE BENEFIT PACKAGE A REQUIREMENT FOR ALL EMPLOYERS TO HELP PAY FOR THEIR WORKERS' MEDICAL INSURANCE AND CERTAIN INSURANCE MARKET REFORMS BUT MR CLINTON NOTED THAT THE WHITE HOUSE IS PROHIBITED BY LAW FROM RUNNING ADVERTISEMENTS AND ASKED THAT THE ASSOCIATION JOIN WITH US IN PROMOTING THE WHITE HOUSE PROPOSAL WE'RE DELIGHTED WITH THE PRESIDENT'S VERY POSITIVE RESPONSE WHICH SHOWS THAT WE'RE EXACTLY ON THE SAME WAVE LENGTH ON THE CENTRAL ISSUE OF UNIVERSAL COVERAGE MR GRADISON SAID HE ADDED THAT THE HEALTHINSURANCE GROUP HAS NO CURRENT PLANS FOR ANY ADS EITHER CRITICAL OR SUPPORTIVE HARRY AND LOUISE LAST AIRED AT THE END OF FEBRUARY 9403160003 940316 LAW LEGAL BEAT FIRM'S PARALEGALS CAN BE EXEMPT FROM OVERTIME PAY JURY DECIDES BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL LAWFIRM PARALEGALS MAY PERFORM SUFFICIENTLY SOPHISTICATED WORK TO DISQUALIFY THEM FROM RECEIVING OVERTIME PAY A FEDERALCOURT JURY HAS FOUND IN A CASE THAT COULD AFFECT COMPENSATION POLICIES AT MANY LAW FIRMS PARALEGALS PERFORM A WIDE RANGE OF DUTIES AT LAW FIRMS FROM CLERICAL TASKS SUCH AS PHOTOCOPYING AND ASSEMBLING DOCUMENTS TO WORK RESEMBLING THAT DONE BY LOWERLEVEL LAWYERS SUCH AS DRAFTING LEGAL BRIEFS IN THE CASE AT HAND THE US DEPARTMENT OF LABOR SUED PAGE & ADDISON A SMALL DALLAS LAW FIRM UNDER THE FAIR LABOR STANDARDS ACT SEEKING 40000 IN BACK WAGES FOR THE 23 PARALEGALS WHO WORKED AT THE FIRM FROM 1989 TO 1991 THE AGENCY CONTENDED THAT THE PARALEGALS WERE SUBJECT TO THE ACT'S OVERTIME PROVISION AND THUS ENTITLED TO TIMEANDAHALF PAY FOR WORK IN EXCESS OF 40 HOURS A WEEK THE DALLAS JURY DISAGREED CONCLUDING THAT THE PARALEGALS ARE ELIGIBLE FOR ADMINISTRATIVE EXEMPTION FROM THE PROVISION BECAUSE THEY PERFORM IMPORTANT WORK AND EXERCISE DISCRETION AND INDEPENDENT JUDGMENT THE FIRM'S MANAGING PARTNER MURRY PAGE SAID THE FIRM FOUGHT THE SUIT AT THE UNANIMOUS BEHEST OF ITS PARALEGALS EXCEPT FOR A FORMER PARALEGAL WHO COMPLAINED TO THE LABOR DEPARTMENT HE SAID THE PARALEGALS VIEWED THE SUIT AS A THREAT TO THEIR PROFESSIONAL STATUS AND JOB SECURITY ONE OF THE PARALEGALS JAN BROWNING SAID LEGAL ASSISTANTS WHO ARE PAID ON A SALARY BASIS ARE TREATED DIFFERENTLY FROM THOSE WHO ARE PAID HOURLY THERE'S A PSYCHOLOGICAL DIFFERENCE THE 12LAWYER FIRM SAW THE CASE AS THREATENING ITS COMPETITIVENESS IN THE TIGHT MARKET FOR LEGAL SERVICES PARALEGALS DO AN AWFUL LOT OF THE WORK YOUNG LAWYERS DO MR PAGE SAID IT PERMITS YOU AS A LAW FIRM TO CHARGE MUCH LOWER RATES TO YOUR CLIENTS PAGE & ADDISON'S 11 CURRENT PARALEGALS ARE BILLED TO CLIENTS AT 60 TO 65 AN HOUR AND THE FIRM'S STARTING ATTORNEYS AT 100 AN HOUR IF THE FIRM HAD BEEN FORCED TO GIVE ITS PARALEGALS OVERTIME IT COULD HAVE BEEN COSTEFFECTIVE TO REPLACE THEM WITH LAWYERS MR PAGE SAID A LABOR DEPARTMENT ATTORNEY DECLINED TO COMMENT ABOUT THE CASE DIANE SOROKO PRESIDENT OF THE 17000MEMBER NATIONAL FEDERATION OF PARALEGAL ASSOCIATIONS AND A PARALEGAL AT LONG ALDRIDGE & NORMAN IN ATLANTA SAID THE GROUP ISN'T SURE WHAT IMPACT THE VERDICT WILL HAVE BUT THINKS THE CASE WAS THE FIRST ONE CONCERNING PARALEGAL OVERTIME TO GO TO TRIAL IN FEDERAL COURT ALTHOUGH THE PARALEGALS AT PAGE & ADDISON SIDED WITH THE FIRM IN THIS CASE MS SOROKO SAID THE PARALEGAL PROFESSION IS FAIRLY SPLIT ON THIS A POLL TAKEN AT THE ORGANIZATION'S ANNUAL MEETING LAST YEAR FOUND 51 OF PARALEGALS SUPPORTED EXEMPT STATUS WHICH WOULDN'T REQUIRE THAT THEY RECEIVE OVERTIME PAY AND 49 FAVORED NONEXEMPT STATUS THAT WOULD QUALIFY THEM FOR THE EXTRA COMPENSATION IN A SURVEY OF PARALEGALS CONDUCTED LAST YEAR BY LEGAL ASSISTANT TODAY A PUBLICATION BASED IN COSTA MESA CALIF 59 OF 490 PARALEGALS WHO RESPONDED SAID THEIR FIRMS DIDN'T COMPENSATE THEM FOR OVERTIME A PARALEGAL AT A DALLAS FIRM NOT INVOLVED IN THE COURT CASE WHO DIDN'T WANT TO BE IDENTIFIED SAID OVERTIME IS IMPORTANT FOR PARALEGALS BECAUSE THEY DON'T HAVE AS MANY INCENTIVES SUCH AS PARTNERSHIP AS YOUNG LAWYERS HAVE TO WORK LONG HOURS IN CIRCUMSTANCES WHERE PEOPLE ARE CALLED UPON TO WORK A NUMBER OF HOURS OF OVERTIME 20 OR 30 HOURS A WEEK THE OVERTIME PROVIDES IMMEDIATE COMPENSATION FOR THEIR WORK SHE SAID EVEN IF THE DALLAS VERDICT IS UPHELD THAT DOESN'T MEAN ALL PARALEGALS WOULD BE EXEMPT FROM OVERTIME PAY REQUIREMENTS PARALEGALS' RESPONSIBILITIES AND THE DEGREE OF INDEPENDENCE THEY EXERCISE VARY WIDELY SOME PARALEGALS HAVE SUPERVISORY DUTIES AND ARE CONSIDERED EXECUTIVES OTHERS HOWEVER DO LITTLE OR NO WORK REQUIRING THEM TO EXERCISE DISCRETION AND INDEPENDENT JUDGMENT AT SKADDEN ARPS SLATE MEAGHER & FLOM IN NEW YORK WHICH HAS ABOUT 1000 LAWYERS AND MORE THAN 200 PARALEGALS SUCH DISTINCTIONS ARE ALREADY MADE IN PAYMENT OF PARALEGAL OVERTIME MANY OF OUR PARALEGALS ARE PAID OVERTIME BUT THERE ARE OTHERS WHO DO NOT RECEIVE OVERTIME BASED ON THEIR SPECIFIC DUTIES AND RESPONSIBILITIES SAID EARLE YAFFA THE FIRM'S MANAGING DIRECTOR MR PAGE SAID HE THINKS THE DALLAS VERDICT WILL FORCE THE LABOR DEPARTMENT TO CAREFULLY CONSIDER THE ACTUAL DUTIES PERFORMED BY PARALEGALS BEFORE CONCLUDING THAT THEY ARE ELIGIBLE FOR OVERTIME ALREADY HE SAID A HALFDOZEN FIRMS AROUND THE COUNTRY HAVE CONTACTED HIM BECAUSE THEY EXPECT TO MAKE A SIMILAR DEFENSE I THINK WHAT YOU'RE GOING TO SEE IS A LOT OF LAW FIRMS THAT HERETOFORE JUST CAVED IN ARE NOW GOING TO FIGHT IT MR PAGE SAID US DEPT OF LABOR VS PAGE & ADDISON PC US DISTRICT COURT DALLAS NO 912655 THE AMERICANS WITH DISABILITIES ACT DOESN'T REQUIRE FASTFOOD RESTAURANTS TO BAN SMOKING A FEDERAL JUDGE HAS RULED THE CASE WAS BROUGHT AGAINST MCDONALD'S CORP AND BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC ON BEHALF OF THREE CHILDREN WITH ASTHMA AND A WOMAN WITH LUPUS THE COMPLAINT ALLEGED THAT THE FASTFOOD CHAINS DISCRIMINATE AGAINST PEOPLE WITH RESPIRATORY AILMENTS BECAUSE SMOKING AGGRAVATES THEIR BREATHING PROBLEMS FORCING THEM TO EAT ELSEWHERE BUT LAST WEEK JUDGE TF GILROY DALY THREW OUT THE CLAIM SAYING REQUIRING A TOTAL BAN ON SMOKING WASN'T REASONABLE BECAUSE SOME RESTAURANTS CAN ACCOMMODATE A NOSMOKING' AREA ROBERT FARR THE LAWYER WHO FILED THE CASE SAID HE WOULD APPEAL THE DECISION LAST MONTH MCDONALD'S ANNOUNCED THAT ALL OF ITS MORE THAN 1400 COMPANYOWNED RESTAURANTS WOULD VOLUNTARILY BECOME SMOKEFREE A SPOKESWOMAN FOR THE COMPANY SAID THE MOVE WAS UNRELATED TO THE LAWSUIT STARON VS MCDONALD'S US DIST CT HARTFORD CONN NO NOTED JAMES MARTIGNONI A FORMER SENIOR TRADER FOR THE NEW YORK BRANCH OF ABNAMRO BANK NV A NETHERLANDSBASED BANK WAS SENTENCED TO 21 MONTHS IN PRISON FOR FRAUDULENTLY INFLATING THE VALUE OF THE BANK'S FOREIGNEXCHANGE PORTFOLIO BY ABOUT 70 MILLION FOLLOWING A THREEWEEK TRIAL IN NOVEMBER A FEDERAL COURT JURY IN NEW YORK FOUND MR MARTIGNONI 29 YEARS OLD GUILTY OF 16 COUNTS OF FRAUD MAKING FALSE BOOK ENTRIES AND CONSPIRACY JUDGE JOHN F KEENAN ALSO IMPOSED A TERM OF THREE YEARS' PROBATION TO FOLLOW THE PRISON SENTENCE EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9403160002 940316 OFF TO THE RACES MERGERS SURGE AS FIRMS FIND A RISING ECONOMY AND CHEAP FINANCING THEY GRAB FOR MARKET SHARE TECHNOLOGIES SAVINGS WHAT INDUSTRY IS NEXT ARBITRAGERS IN PIG HEAVEN' BY RANDALL SMITH AND GREG STEINMETZ STAFF REPORTERS OF THE WALL STREET JOURNAL WITH THE US ECONOMY SURGING BACK TO LIFE CORPORATE AMERICA IS PROWLING FOR ACQUISITIONS A SPATE OF HOSTILE OR UNSOLICITED TAKEOVER OFFERS WHICH BEGAN WITH THE RECENT DOGFIGHT OVER PARAMOUNT COMMUNICATIONS INC HAS GAINED MOMENTUM IN THE PAST WEEK WITH TWO NEW 2 BILLION OFFERS LAST THURSDAY DEFENSE CONTRACTOR NORTHROP CORP OFFERED ABOUT 204 BILLION FOR GRUMMAN CORP IN AN EATORBEEATEN BID TO BREAK UP AN ANNOUNCED MERGER BETWEEN GRUMMAN AND MARTIN MARIETTA CORP AND ON MONDAY GENERAL ELECTRIC CO'S GE CAPITAL UNIT ANNOUNCED IT HAD OFFERED 22 BILLION FOR KEMPER CORP ANOTHER FINANCIALSERVICES COMPANY EIGHTEEN MONTHS AGO I DON'T THINK THERE WAS A BOARDROOM IN AMERICA THAT COULD STOMACH DOING AN UNFRIENDLY TRANSACTION SAYS MICHAEL KOENEKE COHEAD OF MERGERS AT MERRILL LYNCH & CO BUT NOW THERE'S JUST A LOT OF PENTUP DEMAND FOR ACQUISITIONS THAT'S COMING OUT ON THE BACK OF CONFIDENCE IN THE ECONOMY MOST OF THE BIDS INVOLVE COMPANIES TRYING TO EXPAND WITHIN THEIR OWN FIELD TO SAVE ON COSTS ENTER NEW MARKETS OR ADAPT TO CHANGING TECHNOLOGIES OR REGULATIONS MANAGERS REALIZE MARKET POSITION IS IMPORTANT IN SURVIVAL AND THEY ARE WILLING TO DO WHATEVER IT TAKES SAYS NEW YORK INVESTMENT BANKER PETER SOLOMON WITH ACTIVITY SWIRLING IN THE DEFENSE FINANCIALSERVICES COMMUNICATIONS AND HEALTHCARE INDUSTRIES HUNDREDS OF INVESTORS AND INVESTMENT BANKERS ARE TRYING TO DIVINE WHERE DEALS WILL STRIKE NEXT THEIR PREDICTIONS THE ENERGY PHARMACEUTICAL AND GIVEN FEDERATED DEPARTMENT STORES INC'S INTEREST IN GAINING CONTROL OF RH MACY & CO RETAILING SECTORS WHILE MERGER ACTIVITY ROSE 80 LAST YEAR FROM THE ROCKBOTTOM LEVEL OF 1992 INVESTMENT BANKERS SEE THE LATEST BIDS AS A SIGN THAT THE PENDULUM CONTINUES TO SWING BACK FROM THE DOLDRUMS OF THE EARLY 1990S TOWARD THE MORE HECTIC PACE OF THE 1980S MINUS THE CORPORATE RAIDERS JUNK BONDS AND LEVERAGED BUYOUTS THE TOUCHSTONE OF THE EARLY 1990S WAS CORPORATE DOWNSIZING LAYOFFS RESTRUCTURING RECAPITALIZATION BANKRUPTCY AND EMERGING FROM BANKRUPTCY SAYS RICHARD H SCHNEIDER A TAKEOVERSTOCK TRADER HE SAYS THE BATTLE FOR PARAMOUNT WHICH BEGAN LAST SEPTEMBER AND ENDED RECENTLY WHEN VIACOM INC WON WITH A BID OF ABOUT 10 BILLION WAS A WATERSHED EVENT THE BEGINNING OF A NEW HOSTILE ACQUISITIVE PHASE OF THE MERGER CYCLE JEFFREY WILLIAMS HEAD OF MEDIA AND TELECOMMUNICATIONS MERGERS AT MORGAN STANLEY & CO SAYS THAT TWO DELAWARE COURT DECISIONS IN THE PARAMOUNT BATTLE WHICH ROASTED PARAMOUNT DIRECTORS FOR NOT GIVING DUE CONSIDERATION TO A HOSTILE BID BY QVC INC MAY ALSO HAVE EMBOLDENED EXECUTIVES TO MAKE NEW BIDS THE TAKEOVER ACTIVITY IS GETTING A STRONG TAIL WIND FROM SOME BASIC ECONOMIC FUNDAMENTALS INTEREST RATES ARE LOW THAT HAS REDUCED THE COST OF BANK DEBT USED TO FINANCE CASH BIDS IT HAS ALSO SENT STOCK PRICES SOARING FOR THE PAST THREE YEARS MAKING CHEAP EQUITY FINANCING AVAILABLE AS WELL WE HAVE AN ABSOLUTELY TERRIFIC FINANCING MARKET LOW RATES AND HIGH STOCKPRICE/EARNINGS RATIOS SAYS STEPHEN SCHWARZMAN PRESIDENT OF BLACKSTONE GROUP A MERGER SPECIALIST WILLIAM BENEDETTO A PRINCIPAL OF BENEDETTO GARTLAND & GREEN INC SAYS THE EBULLIENT STOCK MARKET MAY SOMETIMES HAVE A PERVERSE EFFECT THOUGH HE SAYS IT COULD PRESSURE SOME COMPANIES TO SEEK GROWTH VIA ACQUISITIONS IN ORDER TO JUSTIFY THEIR STOCK PRICE THE STEADY DECLINE IN INTEREST RATES WHICH BOTTOMED IN OCTOBER AND HAVE SINCE BEGUN CREEPING UP HAS FINALLY STOKED THE US ECONOMY AFTER THREE YEARS OF SPUTTERING GROWTH THE GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN THE NATION GREW ONLY 02 IN 1990 AND 03 IN 1991 BUT THEN SURGED IN 1993 FROM A GROWTH RATE OF 08 IN THE FIRST QUARTER TO A GALLOPING 75 ANNUAL RATE IN THE FOURTH QUARTER THAT WAS THE FASTEST RATE SINCE THE FIRST QUARTER OF 1984 PEOPLE ARE MORE CONFIDENT IN THE ECONOMY TODAY AND THAT CONFIDENCE IS SHOWING ITSELF IN A PICKUP IN DEALS SAYS MIKE OVERLOCK COHEAD OF INVESTMENT BANKING AT GOLDMAN SACHS & CO WHICH REPRESENTS TAKEOVER TARGETS GRUMMAN AND KEMPER MR KOENEKE OF MERRILL LYNCH ALSO SAYS THAT SOME 20 BILLION OR MORE IN FUNDS EARMARKED FOR LEVERAGED BUYOUTS IS WAITING IN THE WINGS TO JOIN THE FRAY IF STOCK PRICES FALTER AS OF NOW HE SAYS EVERYTHING IS STILL TOO PRICEY FOR THEM THE BIDS BY NORTHROP AND GE CAPITAL HAVE EXCITED WALL STREET TRADERS WHO BELIEVE THAT ACTIVITY IN A GIVEN SECTOR WILL BREED MORE OF THE SAME YESTERDAY SHARES OF MUTUALFUND COMPANIES AND ANNUITY INSURERS ROSE ON NEWS OF THE GE SUBSIDIARY'S INTEREST IN KEMPER WHICH KEMPER IS TRYING TO DEFLECT AND SHARES OF TIME WARNER INC HAVE RISEN 250 A SHARE THIS WEEK ON SPECULATION THAT SEAGRAM CO WHICH OWNS 131 OF TIME WARNER MIGHT WAGE A PROXY FIGHT FOR CONTROL OF THE MEDIA AND ENTERTAINMENT CONCERN THIS WEEK HAS EVEN SEEN THE RESURFACING OF TWO NAMES FROM THE CORPORATERAIDING HEYDAY OF THE 1980S CARL POHLAD A PARTNER OF MINNEAPOLIS INVESTOR IRWIN JACOBS MADE A 178 MILLION UNSOLICITED BID FOR FIBREBOARD CORP AND ALFRED KINGSLEY WHO SERVED AS A LIEUTENANT TO CARL ICAHN PROPOSED A BREAKUP OF US SHOE CORP SUCH PERSONALITIES THOUGH ARE RARE MISSING FROM THE ACTION ARE MANY OF THE PLAYERS THAT ADDED THE MOST FROTH TO THE RECORD YEARS OF 1988 AND 1989 CORPORATE RAIDERS WENT INTO ECLIPSE FOLLOWING THE COLLAPSE OF THE JUNKBOND MARKET AND OF DREXEL BURNHAM LAMBERT INC WHICH HAD PROVIDED THEIR FINANCING RAIDERS ALSO WERE HURT BY A THICKET OF CORPORATE TAKEOVER DEFENSES STATE ANTITAKEOVER LAWS AND TAXLAW CHANGES REDUCING THE REWARDS OF CORPORATE BREAKUPS LEVERAGED BUYOUT FIRMS WHICH ACCOUNTED FOR SOME OF THE BIGGEST DEALS IN HISTORY LED BY THE 25 BILLION BUYOUT OF RJR NABISCO INC ALSO REMAIN ON THE SIDELINES THEY CAN'T FIND MANY BARGAINS BECAUSE STOCK PRICES REMAIN HIGH BUT THEY ALSO NEEDED THE RAIDERS AROUND TO DRIVE RELUCTANT CORPORATE EXECUTIVES INTO THEIR ARMS ALSO GONE ARE THE FOREIGN ACQUIRERS LED BY BRITISH AND JAPANESE CORPORATIONS SOME ARE SADDLED WITH HIGHPRICED US MOVIE STUDIOS OR OFFICE TOWERS AND THEIR COUNTRIES' ECONOMIES HAVE BEEN SLOW TO BOUNCE BACK FROM RECESSION SO THE CURRENT MERGER SCENE IS CONCENTRATED AMONG US CORPORATIONS BENT ON ACQUIRING OTHERS IN THE SAME OR RELATED FIELDS THE SURGE IN BIDS HAS DELIGHTED INVESTORS WHO SPOTTED THE COMPANIES AS TAKEOVER POSSIBILITIES AND HAS CHEERED THE ARBITRAGERS WHO MAKE BETS ON THE ULTIMATE OUTCOME OF EACH BATTLE SAYS MONEY MANAGER MARIO GABELLI THIS IS PIG HEAVEN FOR THE ARBITRAGERS SINCE THE DEAL WITH MARTIN MARIETTA AND THE RIVAL BID BY NORTHROP GRUMMAN STOCK HAS SOARED 26 FROM ITS CLOSING PRICE MARCH 4 OF 39875 KEMPER HAS RISEN 20875 FROM ITS CLOSING PRICE OF 40875 LAST FRIDAY BEFORE THE BID BY GE WAS MADE PUBLIC IT JUST FEELS LIKE WE'RE OFF TO THE RACES SAYS PETER SCHOENFELD VICE CHAIRMAN AND HEAD OF PROPRIETARY TRADING AT WERTHEIM SCHRODER & CO WHICH IS ATTEMPTING TO BOOST THE ARBITRAGE ASSETS IT HAS UNDER MANAGEMENT GEORGE KELLNER MANAGING PARTNER OF THE ARBITRAGE FIRM OF KELLNER DILEO & CO ESTIMATES THAT THE AMOUNT OF MONEY DEVOTED TO ARBITRAGE 3 BILLION TO 4 BILLION REMAINS A SMALL FRACTION OF THE 15 BILLION IN THE LATE 1980S ARBITRAGERS' FUNDS UNDER MANAGEMENT DRIED UP AFTER THE TRADERS WERE BLOODIED BY LOSSES ON A SUCCESSION OF DEALS THAT COLLAPSED MOST SPECTACULARLY THE 1989 BUYOUT OF UNITED AIRLINES PARENT UAL CORP ANOTHER STRAW IN THE WIND GE'S KIDDER PEABODY & CO SECURITIES UNIT WHICH GAVE UP ARBITRAGE AFTER BEING SCARRED BY THE INSIDERTRADING SCANDALS OF THE 1980S HIRED A TAKEOVERSTOCK TRADER THIS WEEK AND PLANS TO REENTER THE FIELD OF THE CURRENT ATMOSPHERE DENNIS LAPLAIGE HEAD OF THE EQUITY GROUP OF MCKAY SHIELDS CORP SAYS IT MAKES ME FEEL GOOD HIS FIRM OWNED ABOUT ONE MILLION SHARES OF BOTH GRUMMAN AND KEMPER BEFORE EITHER COMPANY BECAME A TAKEOVER TARGET MR LAPLAIGE PREDICTS THAT ENERGY COMPANIES WILL BECOME TAKEOVER TARGETS FIGURING THAT INDUSTRY MUST SHRINK SINCE THE PRICE OF OIL IS WAY DOWN EACH INDUSTRY HAS ITS OWN RATIONALE FOR MERGER ACTIVITY THE DEFENSE INDUSTRY IS CONSOLIDATING BECAUSE OF PENTAGON BUDGET CUTS HEALTHCARE COMPANIES SUCH AS COLUMBIA HEALTHCARE CORP WHICH RECENTLY COMPLETED A 55 BILLION MERGER WITH HCAHOSPITAL CORP OF AMERICA ARE EXPANDING TO GAIN ECONOMIES OF SCALE UNDER COST PRESSURE FROM BOTH THE GOVERNMENT AND PRIVATE INSURERS TELECOMMUNICATIONS AND CABLETELEVISION CONCERNS ARE FORGING ALLIANCES BECAUSE OF REGULATORY AND TECHNOLOGICAL CHANGE SOME REGULATORY CHANGES HOWEVER HAVE THE OPPOSITE EFFECT A NEW CABLETV RATE ROLLBACK CONTRIBUTED TO THE UNRAVELING OF THE PROPOSED 20 BILLIONPLUS ACQUISITION OF TELECOMMUNICATIONS INC THE NATION'S LARGEST CABLETV OPERATOR BY BELL ATLANTIC CORP THE REGIONAL TELEPHONE COMPANY THE SHOCK WAVES FROM THE COLLAPSE OF THAT DEAL ARE STILL BEING FELT WITH SOME AUCTIONS OF CABLETV PROPERTIES PROCEEDING MORE SLOWLY THAN EXPECTED SOME TRANSACTIONS LIKE A PROPOSED 49 BILLION JOINT CABLETV VENTURE BETWEEN COX ENTERPRISES INC AND SOUTHWESTERN BELL CORP ARE BEING RENEGOTIATED STILL MR SCHOENFELD SAYS A DEAL IN ONE FIELD CAN SOMETIMES HAVE A RIPPLE EFFECT THAT LURES OTHER PLAYERS FOR EXAMPLE HE SAYS A PROPOSED 19 BILLION TAKEOVER OF DREYFUS CORP BY MELLON BANK SIGNALED THE START OF TAKEOVER ACTIVITY IN THE BOOMING MUTUALFUND FIELD THAT HAS BEEN FOLLOWED BY GE'S OFFER FOR KEMPER SOME ANALYSTS VIEW THAT RIPPLE EFFECT AS PACK MENTALITY COMPANIES STAMPEDE TO MAKE ACQUISITIONS IN A HOT BUSINESS ONLY TO SEE CONDITIONS CHANGE AS COMPETITION INCREASES I THINK AT TIMES BUSINESS LEADERS FEEL COMFORTABLE MOVING IN HERDS IT'S ALMOST LIKE THEY'RE WAITING FOR A LEADER TO MOVE BEFORE THEY ALL PLUNGE IN SAYS CHARLES RONSON A MONEY MANAGER AT BALESTRA CAPITAL IN NEW YORK FOR THOSE ATTEMPTING TO RESIST AN UNFRIENDLY TAKEOVER EVEN THE STOUTEST DEFENSES GENERALLY FALL TO A WELLHEELED INDUSTRIAL BIDDER AS THE 79 BILLION TAKEOVER OF NCR CORP BY AMERICAN TELEPHONE & TELEGRAPH CO SHOWED IN 1991 NOR IS THE FEAR OF LAYOFFS AS MUCH OF A DETERRENT TO TAKEOVERS NOWADAYS SO MANY HEALTHY CORPORATIONS HAVE ANNOUNCED LAYOFFS UNRELATED TO TAKEOVERS THAT MORE PEOPLE MAY NOW REALIZE TAKEOVERS CAN HELP SOME COMPANIES COMPETE IN THE BATTLE FOR GRUMMAN FOR EXAMPLE BOTH BIDDERS ARE EXPECTED TO MAKE LAYOFFS IN COMBINING THE BUSINESSES SOME OF THE UNSOLICITED BIDDERS ARE HOPING TO SURF THE WAVE OF SHAREHOLDER ACTIVISM AMONG BIG INSTITUTIONAL INVESTORS WHO IN RECENT YEARS HAVE TOPPLED THE CHIEF EXECUTIVES AT SUCH COMPANIES AS INTERNATIONAL BUSINESS MACHINES CORP AND GENERAL MOTORS CORP WHICH WERE TOO BIG TO BE TAKEN OVER EVEN IN THE 1980S THE TIMING OF GE'S BID TWO MONTHS BEFORE KEMPER'S ANNUAL MEETING PUTS KEMPER ON THE SPOT JUST AS SHAREHOLDERS MUST VOTE ON NOMINEES FOR KEMPER'S BOARD OF DIRECTORS ONE PERSON CLOSE TO THE SITUATION SAYS GE HOPES THAT SHAREHOLDER PRESSURE ON KEMPER WILL BE AMPLIFIED BY NEWLY RELAXED RULES THAT GIVE LARGE HOLDERS GREATER FREEDOM TO COMMUNICATE WITH ONE ANOTHER WITHOUT MAKING EXPENSIVE LEGAL FILINGS WITH FEDERAL REGULATORS SAMUEL L HAYES A HARVARD BUSINESS SCHOOL FINANCE PROFESSOR NOTES THAT READIER AVAILABILITY OF BANK FINANCING HAS CONTRIBUTED TO THE INCREASE IN DEALS WITH BANKS HAVING REPLENISHED MUCH OF THEIR EQUITY RESERVES AND WRITTEN OFF THEIR BAD LOANS THEY MAY BE PEEPING OUT AND LOOKING FOR SOME PROFITABLE BUSINESS THIS MAY BE LIKE THE FIRST ROBIN OF SPRING ALAN SCHWARTZ HEAD OF INVESTMENT BANKING AT BEAR STEARNS & CO SAYS THAT THE PERCEPTION OF WHAT IS ACCEPTABLE CORPORATE BEHAVIOR CHANGES WITH THE TIMES IN THE LATE 1980S HE EXPLAINS JUNKFINANCED LEVERAGED BUYOUTS AND OTHER MANEUVERS THAT RESULTED IN CORPORATE BREAKUPS SORT OF CREATED THIS PERCEPTION THAT DEALS WERE BAD AND PEOPLE WANTED TO GET BACK TO THEIR KNITTING NOW HE SAYS SOME COMPANIES FEEL THAT HAVING GONE THROUGH LAYOFFS AND RESTRUCTURINGS THAT ONLY GOES SO FAR AND TO ACHIEVE THEIR STRATEGIC OBJECTIVES THEY NEED MORE CRITICAL MASS 9403160001 940316 TECHNOLOGY & HEALTH CIGNA UNIT SELECTS COMPETITOR TO RATE QUALITY OF CARE BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL CIGNA CORP'S HEALTHCARE UNIT SAID IT SELECTED A DIVISION OF UNITED HEALTHCARE CORP TO PRODUCE REPORT CARDS ON THE QUALITY OF CARE DELIVERED BY ITS MANAGED CARE NETWORKS AROUND THE US THE AGREEMENT MEANS CIGNA BASED IN HARTFORD CONN IS APPARENTLY THE FIRST MAJOR MANAGED HEALTHCARE PROVIDER TO CONTRACT WITH AN OUTSIDE COMPANY TO DEVELOP DATA ON QUALITY RATHER THAN ATTEMPT TO PROVIDE IT ON ITS OWN IT ALSO MEANS THAT UNITED HEALTHCARE MINNEAPOLIS WHICH ALREADY PRODUCES REPORT CARDS FOR ITS OWN HEALTH PLANS WILL PROVIDE THE SAME SERVICE FOR A COMPETITOR IN SOME MARKETS THE TWO COMPANIES HAVE COMPETING PLANS IN SOME CITIES OFFICIALS AT BOTH CIGNA AND UNITED HEALTHCARE SAID THE MOVE IS A BOOST TO EFFORTS TO DEVELOP STANDARDIZED REPORTS ON QUALITY THAT EMPLOYERS AND CONSUMERS CAN USE TO COMPARE THE QUALITY OF HEALTH PLANS THERE'S NO COMMON LANGUAGE FOR THE MEASUREMENT OF QUALITY SAID MICHAEL A STOCKER PRESIDENT OF CIGNA HEALTHPLANS WHICH OWNS 44 MANAGED CARE NETWORKS MOST OF THIS STUFF ISN'T USEFUL IF IT ISN'T COMPARABLE AND COLLECTED IN A COMMON WAY HE ALSO SAID THE AGREEMENT WOULD ENABLE CIGNA TO DEVELOP THE INFORMATION FASTER MORE COSTEFFECTIVELY AND PERHAPS MORE CREDIBLY THAN IF THE COMPANY PREPARED THE QUALITY DATA ITSELF MR STOCKER SAID THE VALUE OF THE CONTRACT IS ABOUT 3 MILLION OVER TWO YEARS SEVERAL HEALTH MAINTENANCE ORGANIZATIONS AND OTHER MANAGEDCARE COMPANIES HAVE ALREADY LAUNCHED EFFORTS AIMED AT MEASURING THEIR PERFORMANCE IN RESPONSE TO DEMANDS FROM MAJOR EMPLOYERS AND IN ANTICIPATION OF REQUIREMENTS IN BOTH STATE AND PROPOSED FEDERAL HEALTHCARE REFORM LEGISLATION PRUDENTIAL INSURANCE CO OF AMERICA FOR INSTANCE RECENTLY ESTABLISHED A CENTER FOR HEALTHCARE RESEARCH IN PART TO PRODUCE QUALITY OF CARE DATA UNITED HEALTHCARE'S CENTER FOR HEALTH CARE POLICY AND EVALUATION HELPED PIONEER THE REPORT CARD MOVEMENT AND RECENTLY BEGAN PUBLISHING REPORTS ON ITS MORE THAN 20 HEALTH PLANS WITH THE ADDITION OF THE CIGNA PLANS THE CENTER WILL HAVE A DATABASE ON THE MANAGED CARE OF FOUR MILLION INDIVIDUALS DISTRIBUTED THROUGHOUT THE US SAID SHEILA LEATHERMAN PRESIDENT THAT WILL PROVIDE AN OPPORTUNITY TO ANALYZE NOT ONLY THE PERFORMANCE OF INDIVIDUAL PLANS BUT TO STUDY AND HELP IMPROVE THE QUALITY OF CARE DELIVERED BY MANAGED CARE ORGANIZATIONS SHE SAID 9403160174 940216 KILLING DRUG RESEARCH KILLS PEOPLE CLINTON RATIONS FUTURE CURES BY RICHARD J KOGAN THOMAS JEFFERSON IN 1806 SENT A LETTER TO DR EDWARD JENNER CELEBRATING HIS DISCOVERY OF THE SMALLPOX VACCINE MEDICINE HAS NEVER BEFORE PRODUCED ANY SINGLE IMPROVEMENT OF SUCH UTILITY THE PRESIDENT WROTE YOU HAVE ERASED FROM THE CALENDAR OF HUMAN AFFLICTIONS ONE OF ITS GREATEST TODAY PRESIDENT CLINTON SEEKS TO PROVIDE AMERICANS WITH UNIVERSAL HEALTH CARE BUT HIS STRATEGY APPEARS TO STRESS CUTTING COSTS MORE THAN REDUCING THE CALENDAR OF HUMAN AFFLICTIONS THE PLAN EMBRACES THE CONCEPT THAT WE CANNOT AFFORD ALL THE INVESTMENT IN NEW DRUGS NOR CAN GOVERNMENT AFFORD TO PAY FOR ALL THESE PRODUCTS IT HAS ERECTED A COMPLEX REGULATORY SCHEME TO ENFORCE THIS IDEOLOGY IN FACT AS THE LATE DR LEWIS THOMAS OF MEMORIAL SLOANKETTERING HAS WRITTEN THERE IS NO IMPORTANT HUMAN DISEASE FOR WHICH MEDICINE POSSESSES THE OUTRIGHT CAPACITY TO PREVENT OR CURE WHERE THE COST OF THE TECHNOLOGY IS ITSELF A MAJOR PROBLEM ADVANCES ARE NOT AN OBSTACLE TO COST CONTROL THEY ARE ESSENTIAL TO THE PROCESS THE SUCCESS OF MY COMPANY AND EVERY OTHER BIOPHARMACEUTICAL FIRM HAS ALWAYS RESTED ON THE FUNDAMENTAL PRINCIPLE THAT SCIENTIFIC ADVANCES ARE COSTEFFECTIVE ANTIBIOTICS AND VACCINES REMAIN THE LEAST EXPENSIVE WAY OF TREATING INFECTIOUS DISEASES THE ELIMINATION OF COSTLY ULCER SURGERY AND THE DECLINE IN THE NUMBER OF DEATHS DUE TO HIGH BLOOD PRESSURE WERE MADE POSSIBLE BY THE BREAKTHROUGH MEDICINES OF THEIR DAY DECLINING RATES OF HOSPITALIZATION FOR DISEASES SUCH AS DEPRESSION KIDNEY DISEASE AND CANCER ARE THE RESULT OF NEW DRUGS THAT VASTLY IMPROVED THE EFFECTIVENESS OF INTERVENTION NONETHELESS TREATMENTS FOR MANY OF TODAY'S MOST PREVALENT DISEASES ARE AT A HIGHCOST STAGE IN THE CYCLE OF INNOVATION A RECENT BOSTON CONSULTING GROUP STUDY NOTES THAT THE ANNUAL MEDICAL COSTS OF ONLY SEVEN MAJOR UNCURED DISEASES ACCOUNT FOR ABOUT HALF OF TODAY'S HEALTH CARE BILL CURRENT MEDICAL KNOWLEDGE LEAVES US MIDSTREAM ABLE TO INTERVENE WITH SOME DEGREE OF EFFECTIVENESS IN MANY ILLNESSES BUT STILL SHORT OF A CURE FOR MAJOR DISEASES SUCH AS AIDS ALZHEIMER'S VARIOUS CANCERS MULTIPLE SCLEROSIS ARTHRITIS AND MANY GENETIC DISORDERS FOR MANY OF THESE DISEASES A HIGHLY EFFECTIVE CONTROL OR CURE IS BEING VIGOROUSLY PURSUED AS RESEARCHBASED DRUG FIRMS BEGIN TO APPLY THE UNDERSTANDING OF ILLNESS THAT HAS EMERGED FROM INVESTMENTS IN BIOTECHNOLOGY THE COST OF TREATING TODAY'S MAJOR DISEASES SHOULD PLUNGE IF THE CYCLE OF INNOVATION STALLS WE MAY BE STUCK WITH TODAY'S HIGHESTCOST LESSEFFECTIVE OPTIONS WHILE THE ADMINISTRATION ASSERTS THAT INNOVATIVE DRUGS ARE A MAJOR FACTOR IN RUNAWAY SPENDING PATIENTS WHO HAVE NO EFFECTIVE TREATMENT FACE THE STARK REALITY THAT A DECLINE IN BREAKTHROUGHMEDICINE INVESTMENT WILL RATION THEIR FUTURE CURES NO POLITICIAN WILL BE DEFEATED BY THE CURE THAT DOESN'T COME BUT THE PATIENTS OF TOMORROW WILL LOSE JUST AS SURELY APPARENTLY THE WHITE HOUSE IS SKEPTICAL ABOUT INVESTING SO MUCH IN CURES FOR CERTAIN DISEASES CRITICIZING THE PRICING OF NEW PHARMACEUTICALS IT WANTS TO CREATE A NATIONAL PRICING BOARD A NOTION THAT IS CASTING AN INVESTMENT PALL OVER THE INDUSTRY BUT CONSIDER THE POTENTIAL ADVANCES THAT MAY BE AFFECTED WE AT SCHERINGPLOUGH ARE PURSUING MORE EFFECTIVE TREATMENTS FOR ASTHMA AND HEPATITIS REPLIGEN IS WORKING ON A DRUG TO CURE LATESTAGE CANCERS FOR WHICH NO ALTERNATIVE THERAPIES EXIST MERCK HAS DEVELOPED COMPOUNDS IT HOPES WILL STOP THE PROGRESSION OF HIV INFECTION GENZYME IS WORKING ON GENE THERAPY FOR CYSTIC FIBROSIS AND GAUCHER'S DISEASE EACH OF THESE DRUGS WOULD CONSTITUTE A HUGE MEDICAL ADVANCE SAVING LIVES AND SPURRING FURTHER INVESTMENT THE IDEA THAT A POLITICALLY APPOINTED PRICING BOARD SHOULD RULE ARBITRARILY ON THE ACCESS AND PRICE OF SUCH INNOVATIONS IS APPALLING INDEED DISCOURAGING INVESTMENT IN NEW MEDICINES FOR CERTAIN INDICATIONS WILL SERIOUSLY COMPROMISE THE QUALITY OF CARE FOR MANY ILLNESSES ONE NOTEWORTHY EXAMPLE ALPHA INTERFERON IN DEVELOPING THE FIRST GENETICALLY ENGINEERED ALPHA INTERFERON SCHERINGPLOUGH INITIALLY FOUND THAT ONLY A HANDFUL OF CANCER PATIENTS SHOWED EVEN A PARTIAL REDUCTION IN TUMOR SIZE BUT TO PROCEED WITH DEVELOPMENT OF THE DRUG WE HAD TO COMMIT 100 MILLION TO A RECOMBINANT INTERFERON MANUFACTURING FACILITY WE COMMITTED THE FUNDING BECAUSE OF OUR STEADFAST BELIEF THAT INTERFERON WOULD PROVE USEFUL IN TREATING MANY DISEASES IN 1986 THE DRUG WAS APPROVED IN THE US TO TREAT PEOPLE WITH AN ADVANCED FORM OF HAIRY CELL LEUKEMIA A VERY RARE CANCER OUR TOTAL MARKET AT THE TIME OF APPROVAL WAS FEWER THAN 1000 PEOPLE YET TODAY INTRON A IS A BLOCKBUSTER PRODUCT TREATING 16 DISEASES WITH ANNUAL SALES OF MORE THAN 500 MILLION WORLDWIDE ITS SUCCESS IS REGARDED AS A DEFINING MOMENT IN THE GROWTH OF THE WORLDWIDE BIOTECHNOLOGY INDUSTRY INTRON A IS PRECISELY THE KIND OF DRUG THE CLINTON PLAN DISCOURAGES IT STARTED OUT AS A DUBIOUS TREATMENT FOR A SMALL LARGELY HOPELESS GROUP OF PATIENTS UNDER PRICE CONTROLS DRUGS FOR MANY DISEASE GROUPS WOULD BE SHELVED REGARDLESS OF THEIR POTENTIAL TO ELIMINATE HUMAN SUFFERING THE ADMINISTRATION'S CYNICAL SILENCE ON THE HUMAN COST OF RATIONING IMPORTANT NEW MEDICINES MAKES THE MORAL RHETORIC OF HEALTH CARE REFORM RING HOLLOW WHILE THE PHARMACEUTICAL INDUSTRY IS ACCUSED OF PUTTING PROFITS BEFORE PEOPLE THE ADMINISTRATION'S PLAN PUTS CHEAP DRUGS BEFORE FUTURE CURES COST REDUCTIONS BEFORE QUALITY A POLITICAL STRATEGY BEFORE THE IMPERATIVE OF SUSTAINING MEDICAL PROGRESS MR KOGAN IS PRESIDENT AND CHIEF OPERATING OFFICER OF SCHERINGPLOUGH CORP BASED IN MADISON NJ SEE RELATED ARTICLES EXPENSIVE DRUGS LOWER HEALTH CARE COSTS DEMOGRAPHY AND TECHNOLOGY TIME BOMB AND THE MORAL BATTLE PLAN WSJ FEB 16 1994 SEE RELATED LETTER LETTERS TO THE EDITOR NO ONE'S GOING TO KILL DRUG RESEARCH WSJ MARCH 16 1994 9402160163 YY94 MM03 9403160099 940216 KILLING DRUG RESEARCH KILLS PEOPLE EXPENSIVE DRUGS LOWER HEALTH CARE COSTS BY JD KLEINKE GIVEN PRESIDENT CLINTON'S TASTE FOR INDUSTRIAL POLICY AND GLOBAL ECONOMICS IT IS DOUBLY DISMAYING THAT HIS HEALTH CARE PLAN INCLUDES A POPULIST DEMONIZATION RATHER THAN A NEW DEMOCRAT'S EMBRACE OF THE US PHARMACEUTICAL INDUSTRY THE PRESIDENT HAS SUBMITTED LEGISLATION THAT IS CERTAIN TO DRAIN AWAY INNOVATION COMPETITIVENESS AND GLOBAL MARKET SHARE THOUGH STILL ON THE DRAWING BOARD THE HEALTH CARE PLAN WITH ITS NATIONAL BOARD APPOINTED TO SET PRICES FOR BREAKTHROUGH DRUGS HAS ALREADY SCARED OFF INVESTMENT CAPITAL AND SCUTTLED THE PLANS OF AMERICAN DRUG AND BIOTECH COMPANIES INTERNAL AND EXTERNAL RISK CAPITAL HAS DRIED UP FORCING COMPANIES TO SHELVE NEW PRODUCTS CUT R&D CANCEL WAVES OF RECRUITMENT AND ISSUE TENS OF THOUSANDS OF PINK SLIPS THIS IS INDEED A SAD STATE OF AFFAIRS FOR WHAT AMOUNTS TO ONLY 7 OF TOTAL US HEALTH CARE COSTS DELIVERED BY A NET EXPORTING INDUSTRY THAT TURNS BASIC RESEARCH INTO MARKETABLE PRODUCTS WHILE CREATING AND SUSTAINING HIGHSKILL JOBS RESEARCH BY BRANDEIS UNIVERSITY'S ROBERT GOLDBERG REVEALS THAT AMONG GLOBAL COMPETITORS THERE IS A PERFECTLY INVERSE RELATIONSHIP BETWEEN DRUG PRICE REGULATION AND NEW PRODUCT INNOVATION AS MEASURED BY PRODUCT INTRODUCTIONS AND WORLDWIDE MARKET SHARE RELATIVE TO DOMESTIC MARKET SIZE EVERY TIME A NONJAPANESE NATION HAS INSTITUTED PRICE CONTROLS ON DRUGS ITS DRUG COMPANIES HAVE RECHANNELED DEVELOPMENT EFFORTS TOWARD COMMODITIZING EXISTING PRODUCTS RATHER THAN PURSUING BREAKTHROUGH CURES AND EACH NATION'S DRUG INDUSTRY HAS COLLECTIVELY LOST MARKET SHARE TO US FIRMS THAT WERE CAPITALIZED BY A FREE MARKET TO PURSUE THE NEXT BIG CURE AND THEN THERE IS JAPAN WHICH EXERTS WIDESPREAD PRICE CONTROLS BUT IN A MANNER THAT AGGRESSIVELY ENCOURAGES AND REWARDS NEW DRUG R&D THE PRICES FOR EXISTING PRODUCTS SYSTEMATICALLY DECREASE EVERY TWO YEARS WHILE NEW COMPOUNDS ENJOY A PREMIUM TWO TO THREE TIMES THAT OF FREE MARKET US PRICES THIS STRATEGY IS JAPAN'S RECOGNITION OF A NATURAL PRODUCT CYCLE THAT IS PRECISELY WHAT THOSE IN WASHINGTON DENY IN THE DEBATE AND THEN SEEK TO DESTROY THROUGH LEGISLATION PREMIUM PRICES LEAD TO PROFITS THAT ACCELERATE THE DEVELOPMENT OF BETTER PRODUCTS A DRUG'S PRICE IS HIGH NOT ONLY BECAUSE THE COST OF DEVELOPING THAT ONE COMPOUND IS ENORMOUS THE PRICE IS HIGH ALSO BECAUSE FOR EACH COMPOUND THAT FLIES HUNDREDS DO NOT RESTRAIN PRICES ON THE DRUGS THAT DO FLY AND YOU MUST IMPROVE THE ODDS FROM THE OUTSET THIS TRANSLATES INTO A COMMENSURATE REDUCTION IN RISKTAKING AND INNOVATION WHICH IN TURN TRANSLATES INTO FORSAKEN CURES UNDER THIS SCENARIO WE END UP WITH PRECISELY WHAT GOVERNMENTMANDATED PRICE CONTROLS PROMISE COMPANIES THAT FUNCTION MORE LIKE PUBLIC UTILITIES PRODUCING LOWRISK COMMODITIES INDISTINGUISHABLE FROM EACH OTHER INSTEAD OF PRODUCTS OF EXCELLENCE THAT COMMAND PREMIUM DOLLARS UNDER THE THREAT OF DRUG PRICE CONTROLS 5208 MILLION IN DRUG AND DEVICE ISSUES PUBLIC AND PRIVATE STOCK OFFERINGS WERE CANCELED IN 1993 ACCORDING TO COMMSCAN A MONITOR OF EQUITY DEAL ACTIVITY WHILE SUCH DEALS TYPICALLY FUND HIGHLY CAPITALINTENSIVE R&D THEY ALSO MANAGE TO CREATE ONE FULLTIME JOB FOR EVERY 135000 RAISED AT THIS RATE 1993'S CANCELED FINANCINGS THWARTED THE CREATION OF 3858 JOBS ADD THIS FIGURE TO THE 35000 PINK SLIPS ISSUED BY PHARMACEUTICAL MAKERS SINCE THE HEALTH CARE DEBATE BEGAN LAST WINTER AND THE CLINTONS CAN TAKE CREDIT FOR NEARLY 39000 LOST JOBS AND EVERY ONE OF THEM WAS A HIGHWAGE HIGHSKILLBASED HIGHTECH JOB THE KIND CANDIDATE CLINTON PROMISED TO CREATE OF COURSE THE OBSESSION WITH CONTROLLING DRUG PRICES MAY BE LESS DEMAGOGIC AND MORE THE RESULT OF THE GOVERNMENT'S NEED TO LOWER ITS OWN DRUG BILL ESPECIALLY NOW THAT IT HAS OFFERED PRESCRIPTION COVERAGE TO MEDICARE BENEFICIARIES BUT IF THE GOVERNMENT WANTS TO CONTROL HEALTH CARE COSTS IT SHOULD DO EVERYTHING IT CAN TO ENCOURAGE PREMIUM DRUG PRICES THE RESULT WOULD BE MORE R&D ON EVER SUPERIOR DRUG THERAPIES WHICH IN TURN WOULD SUPPLANT MORE OF THE EXPENSIVE MEDICAL INTERVENTIONS THE GOVERNMENT NOW BUYS THIS REASONING FOLLOWS THE FUNDAMENTAL PARADOX OF MEDICAL CARE KNOWN AS PHARMACOECONOMICS THAT EXPENSIVE DRUGS LOWER HEALTH CARE COSTS PHARMACOECONOMICS IS THE REASON DRUG COMPANIES ARE SO PROFITABLE HIGHERTECH DRUGS BRING TREMENDOUS MEASURABLE VALUE AS SUBSTITUTE GOODS IN A COMPETITIVE THERAPEUTIC MARKETPLACE A NEW DRUG THAT HAS THE POTENTIAL TO PREVENT A HOSPITALIZATION ELIMINATE A SURGERY OR GET A PATIENT OUT OF THE ICU FASTER HAS EVERY RIGHT TO BE PRICED FOR VALUE NOT COST AND THE VALUE IN THE CASE OF REDUCED RESOURCE CONSUMPTION IS USUALLY ENORMOUS EVERY STUDY OF HOSPITAL CLINICAL PATTERNS CONDUCTED BY OUR FIRM INDICATES THAT THE CUMULATIVE DIFFERENCES BETWEEN THE LEAST EFFICIENT MEDICAL PATHWAY AND THE BEST APPROACH REPRESENT MULTIBILLIONDOLLAR POTENTIAL SAVINGS FOR THE HEALTH CARE ECONOMY HOSPITALS ARE ACTIVELY PURSUING SUCH SAVINGS THEIR CONTINUED PROGRESS THE MOST PROFOUND REFORM OF ALL WILL REQUIRE CONTINUAL DEVELOPMENT OF EVER BETTER IF PREMIUM PRICED MEDICINES UNFORTUNATELY A PHARMACOECONOMIC COSTBENEFIT IS DIFFICULT TO CONVEY DURING THE 30SECOND ATTENTION SPAN OF POPULAR POLITICAL DISCOURSE THE DRUG INDUSTRY RECOGNIZES THE DIFFICULTY OF CONVINCING VOTERS INSULATED FROM THE 46000 PRICE TAG FOR A CORONARY BYPASS OF THE VALUE OF A 60 PER MONTH CHOLESTEROLLOWERING DRUG THAT POSTPONES OR PREVENTS THOUSANDS OF BYPASSES EVERY YEAR IF CLINTON DRUG PRICE CONTROLS BECOME LAW IT WILL BE HARDER STILL TO EXPLAIN THAT 10 OF THIS 60 COULD HAVE GONE INTO DEVELOPING A PRODUCT THAT MIGHT HAVE SPARED AMERICANS FROM THE NOW INCURABLE DISEASE THAT WILL EVENTUALLY CLAIM THEM MR KLEINKE IS A PRINCIPAL WITH HCIA A HEALTH CARE DATA ANALYSIS AND RESEARCH FIRM HEADQUARTERED IN BALTIMORE SEE RELATED ARTICLES CLINTON RATIONS FUTURE CURES DEMOGRAPHY AND TECHNOLOGY TIME BOMB AND THE MORAL BATTLE PLAN WSJ FEB 16 1994 SEE RELATED LETTER LETTERS TO THE EDITOR NO ONE'S GOING TO KILL DRUG RESEARCH WSJ MARCH 16 1994 9402160192 YY94 MM03 9403160098 940228 FORGET MIDEAST PEACE AIM FOR DIVORCE BY DAVID BROOKS HEBRON THE TOMB OF THE PATRIARCHS WHERE DR BARUCH GOLDSTEIN MASSACRED DOZENS OF ARAB WORSHIPPERS FRIDAY IS BOTH A SYNAGOGUE AND A MOSQUE IN THE SMALL JEWISH PRAYER ROOMS THE ARKS CONTAINING THE TORAHS ARE PUSHED UP AGAINST WALLS ENGRAVED WITH ARABIC VERSES UP UNTIL FRIDAY THERE WERE A SERIES OF ELABORATE RULES GOVERNING THE TWO RELIGIONS' USE OF THE SHRINE THE BASIC PRINCIPLE BEING THAT TO KEEP ORDER IT WAS NECESSARY TO KEEP THE TWO GROUPS APART JEWS WERE NOT PERMITTED IN THE BUILDING ON FRIDAYS AND PRAYED THERE MAINLY IN THE MORNINGS JEWS WERE ALLOWED TO SWEEP THE FLOOR BUT THEY COULD NOT MOP BECAUSE SUCH CLEANING WOULD IMPLY OWNERSHIP ALL THE ELABORATE RULES WERE SHOT TO BITS ON FRIDAY A WARNING FOR ANY PEACEPROCESS NEGOTIATORS WHO THINK THEY CAN PAPER OVER ANTIPATHIES WITH ELABORATE COMPROMISES HEBRON WAS THE FIRST JEWISH CITY ABRAHAM THE FOUNDER OF THE JEWISH RELIGION IS BURIED A FEW YARDS FROM WHERE GOLDSTEIN EMPTIED HIS MACHINE GUN AS ARE ISAAC SARAH JACOB REBECCA AND LEAH IT WAS THE FIRST TOWN JEWS RESETTLED WHEN THEY REGAINED ACCESS TO THE WEST BANK IN 1967 GOLDSTEIN LIVED IN KIRYAT ARBA A BIG SUBURBANSTYLE COMMUNITY UP ON A HILL DOWN IN THE CENTER OF THE CITY IS A SMALLER BRANCH OF THE SETTLEMENT A FORTRESS WITH ABOUT 200 PEOPLE BUILT AROUND AN ANCIENT SYNAGOGUE THEY LIVE CHEEK BY JOWL WITH 50000 ARABS WHO DETEST THEM WHEN THEY LEAVE THEIR FRONT DOOR PALESTINIAN KIDS CAN PELT THEM WITH ROCKS AND THEN DASH INTO THE DARK ALLEYS OF THE NEIGHBORING MARKETPLACE KNIFINGS AND SHOOTINGS HAVE BECOME MONTHLY EVENTS TERRORISTS PASS THE SETTLERS' CARS ON THE ROAD AND SPRAY THEM WITH MACHINE GUN BULLETS TWO FRIDAYS BEFORE THE MASSACRE A GROUP OF ISRAELI SOLDIERS WERE AT THEIR POSTS OUTSIDE THE HEBRON COMMUNITY WHILE SHIRTSLEEVED SETTLERS UNLOADED A FEW DOZEN RIFLES FROM A JEEP NEARBY A FATHER WAS PUSHING HIS DAUGHTER IN A STROLLER THESE SETTLERS OFTEN HAVE EIGHT OR NINE KIDS THE VANS THAT TAKE THE KIDS TO SCHOOL ARE FREQUENTLY STONED ONE FATHER SAID THAT HIS THREEYEAROLD WOULD WAKE UP AT NIGHT SCREAMING ABOUT THE STONES AND SNAKES IN HIS BED I DON'T KNOW ABOUT BRINGING KIDS INTO ALL THIS ONE OF THE SOLDIERS MUSED AS HE WATCHED THE STROLLERS AND THE GUNS BEING UNLOADED THE SOLDIERS DON'T SAY IT OPENLY BUT IT'S CLEAR THAT THEY SUSPECT THE SETTLERS IN HEBRON ARE NUTS IT'S A COMMON SUSPICION IN ISRAEL AND BARUCH GOLDSTEIN'S MASSACRE CLINCHED THE ISSUE YESTERDAY THE ISRAELI GOVERNMENT DISARMED THE SETTLERS LIVING IN THIS COMMUNITY ESSENTIALLY MAKING THEM PRISONERS IN THEIR HOMES THE LARGER INFLUENCE OF THIS EVENT WILL BE THE WAY IT TAINTS THE SETTLER MOVEMENT AS A WHOLE IF ALL THE WEST BANK SETTLEMENTS WERE LIKE HEBRON WITH NO STRATEGIC IMPORTANCE AND FILLED WITH FANATICS THEN ISRAELIS WOULD HAVE FEW QUALMS ABOUT DISMANTLING THEM BUT MOST SETTLEMENTS ARE NOT LIKE THAT SO UP UNTIL NOW IT'S ALWAYS BEEN A TOUGHER CALL THEY SHOULD TITLE TRIPS THROUGH THE WEST BANK COMMUNITIES THE FROM HERE YOU CAN SEE TOUR BECAUSE AT EACH SPOT SOMEBODY ANNOUNCES FROM HERE YOU CAN SEE THE PLANES LAND AT TEL AVIV AIRPORT OR FROM HERE YOU CAN SEE THE ROAD THE IRAQI TANKS WOULD TAKE IN AN INVASION MANY SETTLEMENTS HAVE STRATEGIC IMPORTANCE AND IT IS HARD NOT TO ADMIRE MANY OF THE SETTLERS THEY DEVOTE THEIR LIVES TO SOMETHING OUTSIDE THEMSELVES AND TAKE RESPONSIBILITY FOR THEIR BELIEFS A DISPROPORTIONATE NUMBER OF THEM HAVE MOVED FROM THE US NOT ONLY THE DEMENTED ONES SUCH AS GOLDSTEIN BUT THE VIRTUOUS ONES FOUND IN ELI SHILOH AND EFRAT IT'S A LIFE SLIGHTLY APART FROM THE MEDIA AND COMMERCIALISM DEVOTED TO FAMILY PEOPLE FEEL THAT BY BUILDING NEW PLACES ON THESE BARREN HILLTOPS THEY ARE SERVING JUDAISM AND ISRAEL YOU WASH OFF THE COSMETICS YOU'VE GOT NO TV YOU'RE DOING SOMETHING YOU'VE GOT THE ROAR OF HISTORY AROUND YOU SAYS A SETTLER ON A HILLTOP OVERLOOKING JERICHO YOU COME HERE AND THERE'S SUCH A CLEAR DESIRE TO HELP ONE ANOTHER THAT YOU DON'T FEEL YOU'RE IMPOSING ON PEOPLE SAYS A PRINCETON GRAD IN ELI WE WERE BROUGHT UP ON THE STORIES OF THE PIONEERS WHO BUILT ISRAEL I DON'T THINK WHAT WE'VE DONE IN THE PAST 10 OR 15 YEARS HERE IS GOING TO PALE IN ANY WAY SHAPE OR FORM SAYS SCRANTONBORN YECHIEL LEITER A LEADER OF THE MOVEMENT BUT IN THE END YOU CAN'T BE A PIONEER JUST FOR THE SAKE OF BEING A PIONEER AND JUST BECAUSE YOU ARE HEROIC DOESN'T MEAN YOUR CAUSE IS REALISTIC SURVEY RESULTS OVER THE PAST FEW MONTHS INDICATE THAT MANY MAINSTREAM ISRAELIS ARE SAYING FAREWELL TO THE WEST BANK WHILE TRYING TO PRESERVE ISRAELI SECURITY IN OTHER WAYS MORE ARE REGARDING THE SETTLER MOVEMENT AS A FAILURE THE RAGE SHAME AND REVULSION OVER THE MASSACRE GIVES ISRAELIS ANOTHER REASON TO WANT TO CUT THEIR TIES TO THE WEST BANK MESS AND GET OUT IF THE SETTLER MOVEMENT IS INDEED A FAILURE IT IS BECAUSE THE RULEMAKERS AT THE TOMB OF THE PATRIARCHS HAD THE RIGHT IMPULSE THE ONLY WAY TO KEEP ORDER IN THE WEST BANK IS TO KEEP THE TWO PEOPLES APART COMMUNITIES OF JEWS AMID AN ARAB POPULATION INVOLVE ISRAEL IN THE SORT OF PERPETUAL IRRITATION THAT A MODERN DEMOCRACY IS NOT WILLING TO TOLERATE IF THE PEACE PROCESS IS TO WORK IT CAN'T BE ABOUT TRUE PEACE THERE WILL BE NO MILLENIAL ENDOFHISTORY MOMENT AFTER WHICH ISRAEL WILL LIVE WITH ITS NEIGHBORS THEY WAY LUXEMBOURG LIVES IN EUROPE IT'S BETTER TO THINK OF THE CURRENT PROCESS AS A DIVORCE SUCCESSFUL TALKS WILL BE ABOUT WHERE TO BUILD WALLS BETWEEN THE PALESTINIANS AND ISRAELIS AND HOW TO DIVIDE OR MANAGE THE ASSETS THEY BOTH CLAIM FEW PALESTINIANS WANT TO LIVE SIDE BY SIDE WITH ISRAELIS RAMPANT ANTISEMITISM CULTURAL DIFFERENCES FEAR OF ISRAELI ECONOMIC DOMINATION ARE AMONG THE FACTORS THAT WILL PREVENT INTIMATE CONTACT AS THEY HAVE BETWEEN ISRAEL AND EGYPT NOR IS IT REALISTIC TO EXPECT A DEMOCRACY LIKE ISRAEL TO HAVE NORMAL RELATIONS WITH THE CHAOTIC REVOLUTIONARYSTYLE REGIME THAT YASSER ARAFAT IS CONSTRUCTING IF NOTHING ELSE THE HEBRON MASSACRE SHOULD END THE ERA OF ILLUSIONS THAT FOLLOWED THE HANDSHAKE ON THE WHITE HOUSE LAWN NAIVE BUSINESSMEN WERE TALKING ABOUT MIDEAST COMMON MARKET THAT'S NOT GOING TO HAPPEN BUT AT THE END OF THE TALKS THERE COULD BE A SITUATION IN WHICH ARAB NATIONS RECOGNIZE ISRAEL'S RIGHT TO EXIST THEN ALL SIDES COULD DO BUSINESS WHEN THEY HAVE TO AND IGNORE EACH OTHER WHEN THEY DON'T IT'S NOT PEACE BUT IT'S BETTER THAN WHAT'S BEEN GOING ON IN HEBRON RECENTLY MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE SEE RELATED LETTER LETTERS TO THE EDITOR ISRAELI WALLS' WILL LEAD TO REPRISALS AND WAR WSJ MARCH 16 1994 9402280075 YY94 MM03 9403160093 940216 TEXAS JOURNAL ALL QUIET ON THE SUPERMARKET WAR FRONT AND THE IMPLICATION FOR CONSUMERS PRICES ARE STARTING TO RISE BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL THE TEXAS GROCERY WARS APPEAR TO BE HEADED FOR A CEASEFIRE AFTER THREE YEARS OF RUTHLESS WARFARE FOR THE HEARTS AND POCKETBOOKS OF TEXAS SHOPPERS MAJOR GROCERYSTORE CHAINS ARE STARTING TO NUDGE UP PRICES OR AT LEAST SLOW THE FREE FALL ACCORDING TO ANECDOTAL EVIDENCE BACKED UP BY A STUDY DONE FOR TEXAS JOURNAL BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE BY ANALYZING CASHREGISTER RECEIPTS FROM STORES AROUND THE STATE THE CHICAGOBASED MARKETRESEARCH COMPANY CONCLUDED THAT THE COST OF A SAMPLE BASKET OF THREEDOZEN NATIONALBRAND GOODS RANGING FROM BOUNTY PAPER TOWELS TO VELVEETA CHEESE DROPPED TO 8166 IN 1993 JUST SIX CENTS LESS THAN THE AVERAGE PRICE DURING 1992 BY CONTRAST THE AVERAGE PRICE FOR THE 12 MONTHS ENDED JULY 25 WAS 8140 DOWN 119 OVER THE YEAREARLIER PERIOD SOME OF THE DIFFERENCE BETWEEN THE TWO PERIODS MAY BE THE RESULT OF SEASONAL VARIATIONS WHILE THE DIFFERENCE MAY SEEM SUBTLE ANALYSTS AND INDUSTRY OFFICIALS SAY IT INDICATES HOSTILITIES ARE LESSENING HERE WHERE GROCERS COMPETE FOR ABOUT 21 BILLION IN ANNUAL SALES CONCERNED ABOUT DWINDLING PROFIT MARGINS AND IN MANY CASES COPIOUS RED INK STORES ARE CUTTING BACK EXPANSION PLANS CURTAILING PROMOTIONS AND MOST IMPORTANT HOLDING THE LINE ON PRICE CUTS AS A RESULT THE PENDULUM IS STARTING TO SWING AGAINST THE CONSUMER FRANKLY I THINK THE WORST OF IT IS OVER SAYS RANDALL ONSTEAD PRESIDENT OF RANDALL'S FOOD MARKETS INC IN HOUSTON THE LATEST INFORMATION RESOURCES NUMBERS WHICH ARE BUTTRESSED BY THE LABOR DEPARTMENT'S CONSUMERPRICE FIGURES ALSO PLACE TEXAS AT ODDS WITH NATIONAL TRENDS IN CONTRAST WITH YEARS PAST WHEN CUTTHROAT COMPETITION FORCED TEXAS GROCERY PRICES DOWN FASTER THAN THOSE IN THE REST OF THE NATION INFOSCAN FOUND THAT IN 1993 THE AVERAGE NATIONAL PRICE OF THE SAMPLE BASKET FELL 106 TO 8138 ONE MAJOR FACTOR IN THE SHIFT HAS BEEN THE BLUNTING OF THE INVASION OF TEXAS LAUNCHED BY FOOD LION INC THE AGGRESSIVE NORTH CAROLINABASED UNIT OF DELHAIZE LE LION SA OF BELGIUM IN 1991 INITIALLY FOOD LION'S ROCKBOTTOM PRICES FORCED COMPETITORS INTO A NASTY PRICE WAR BUT MARKETING STUMBLES ALONG WITH AN INVESTIGATION BY PRIMETIME LIVE IN NOVEMBER 1992 INTO ALLEGED IMPROPRIETIES IN THE CHAIN'S MEAT DEPARTMENT STALLED FOOD LION'S MOMENTUM AND NOW IT SAYS IT WILL CLOSE 36 OF ITS 82 TEXAS STORES THIS YEAR FOOD LION WASN'T THE ONLY CASUALTY HOUSTONBASED FIESTA MART INC CLOSED A BIG CLEAR LAKE STORE LAST YEAR AND HAS POSTPONED PLANS TO ADD SIX STORES IN DALLAS IT WILL ADD ONLY ONE FOR NOW EVEN SAN ANTONIOBASED HEB GROCERY CO WHILE REMAINING STRONG HAS SLOWED ITS HOUSTON BUILDING SCHEDULE AFTER OPENING A STORE A WEEK AT ONE POINT IN 1992 OVERALL THE 30 GROCERYSTORE CHAINS COMPETING IN THE STATE'S MARKET SAY THAT AFTER STORE CLOSINGS AND OPENINGS ARE TAKEN INTO ACCOUNT THEY ADDED A NET OF ONLY ABOUT 30 STORES STATEWIDE IN 1993 COMPARED WITH 40 IN 1992 AND NEARLY 60 IN 1991 STANLEY SHIPLEY A SENIOR ECONOMIST AT LEHMAN BROTHERS GIVES ANOTHER REASON FOR THE TURNAROUND THE TEXAS ECONOMY IS PROBABLY BETTER THAN MOST PLACES ACROSS THE NATION HE SAYS SO THE PRESSURE ON RETAILERS TO GRAB SOMEONE ELSE'S MARKET SHARE IS LOWER SINCE THE TEXAS GROCERY PICTURE VARIES A LOT WITHIN THE STATE IT PAYS TO LOOK AT IT REGION BY REGION HERE'S A SNAPSHOT OF FOUR MAJOR AREAS IN TEXAS DALLASFORT WORTH THE MOTHER OF ALL TEXAS GROCERY WARS BEGAN HERE IN 1991 WHEN FOOD LION STORMED IN AND OPENED 42 STORES IN JUST FOUR MONTHS WEEKS BEFORE THE OPENINGS ESTABLISHED GROCERS SUCH AS ALBERTSON'S INC OF BOISE IDAHO DALLASBASED CULLUM CO'S TOM THUMB STORES SINCE BOUGHT BY RANDALL'S AND CINCINNATIBASED KROGER CO SLASHED THEIR OWN PRICES TO SOLIDIFY CUSTOMER LOYALTY BUT FOOD LION'S ROAR TURNED OUT TO BE WORSE THAN ITS BITE THE CHAIN'S TEXAS GRAND OPENING WAS ON A FRIDAY THE 13TH AND STORE MANAGERS JOKINGLY PASSED AROUND RABBITS' FEET BUT THE GOODLUCK CHARM APPARENTLY DIDN'T WORK BY THE END OF 1993 FOOD LION HAD CAPTURED ONLY 58 OF GROCERY SALES IN GREATER DALLAS ACCORDING TO ESTIMATES FROM MARKET METRICS INC A CONSULTING FIRM IN LANCASTER PA WHILE MANY OBSERVERS INCLUDING FOOD LION ITSELF BLAME ITS TROUBLES ON THE PRIMETIME LIVE SHOW THE CHAIN'S TEXAS TROUBLES ACTUALLY BEGAN MUCH EARLIER FOOD LION WAS IN TROUBLE IN TEXAS BEFORE PRIMETIME EVER AIRED SAYS APPLETREE MARKETS INC VICE PRESIDENT RICHARD GOEGGEL THEY MADE A STRATEGIC ERROR TO PURCHASE USING NORTH CAROLINA BROKERS THEY MISUNDERSTOOD HOW WEDDED THE TEXAN IS TO CERTAIN CONSUMER BRANDS SUCH AS RANCH STYLE BEANS FOOD LION WHILE IT STILL USES NORTH CAROLINA BROKERS NOW TAILORS ITS SELECTION TO TEXAS TASTES A SPOKESMAN SAYS AS FOOD LION FALTERED SO DID THE GROCERY WARS ACCORDING TO INFORMATION RESOURCES THE PRICE OF THE BASKET OF GOODS IN DALLAS STORES IN 1993 WAS UP 67 CENTS OVER 1992 INFORMATION RESOURCES WON'T GIVE THE ABSOLUTE COST OF THE BASKET IN EACH MARKET ONLY HOW MUCH IT CHANGED CPI DATA MEANWHILE SHOW THAT DALLASAREA SUPERMARKET PRICES ROSE 33 IN DECEMBER 1993 FROM THE YEAREARLIER PERIOD HOUSTON WHILE DALLAS SAW SOME OF THE EARLIEST GROCERY WARS HOUSTON SAW THE FIERCEST PARTICULARLY IN THE FIRST SIX MONTHS OF 1993 THE AVERAGE PRICE OF THE INFORMATION RESOURCES GROCERY BASKET IN HOUSTON DURING 1993 DROPPED 130 FROM THE 1992 AVERAGE PRICE IT WAS THE ONLY DIP OF ANY TEXAS REGION AND SINGLEHANDEDLY DRAGGED DOWN THE STATE AVERAGE THE INTENSE WAR HAS CLAIMED MANY VICTIMS UNABLE TO MAKE MONEY AT ROCKBOTTOM PRICES SMALL CLOSELY HELD FOOD KING CORP CLOSED SIX STORES IN 1992 AND SOLD OFF THREE LAST YEAR SAYS CONTROLLER CAROL VYKUKAL CALIFORNIABASED PRICE CO CLOSED ITS HOUSTON PRICE CLUB STORE IN SEPTEMBER AND FOOD LION WHICH HEB'S SIMILARSIZED PANTRY STORES BEAT INTO THE MARKET BY NEARLY A YEAR GOT PUMMELED BY COMPETITION AND IS CLOSING HALF OF ITS 13 HOUSTONAREA STORES THIS YEAR BUT NOW THE WORST APPEARS TO BE OVER AND THE PLAYERS THAT ARE LEFT MAY SEE PROFITS IMPROVE STORES SAY SALES ROSE SIGNIFICANTLY IN THE FOURTH QUARTER AND THE HOUSTON CPI INDEX SHOWS FOOD PRICES ROSE 8 FROM JUNE TO DECEMBER ALBERTSON'S WHICH IS ALREADY IN MOST OTHER TEXAS AREAS IS THE WILD CARD IT COULD REIGNITE THE BATTLE IF IT DECIDES TO ENTER THE MARKET WE HAVE LOOKED AROUND HOUSTON BUT HAVEN'T MADE ANY COMMITMENTS SAYS MICHAEL REULING EXECUTIVE VICE PRESIDENT OF STORE DEVELOPMENT AT THE EARLIEST HE SAYS NEW STORES COULD OPEN IN LATE 1995 SOUTH AND CENTRAL TEXAS WHAT HAS BEEN HAPPENING IN SAN ANTONIO CORPUS CHRISTI AND AUSTIN IS BEST DESCRIBED NOT AS A GROCERY WAR BUT AS HEB SHOOTING DOWN EVERYONE WHO THREATENS ITS HOME TURF KROGER WAS THE LATEST VICTIM UNABLE TO MATCH HEB'S BARGAINBASEMENT PRICES BECAUSE OF HIGHER UNIONIZED LABOR COSTS THE CHAIN LAST SUMMER SOLD ITS 15 SAN ANTONIO STORES TO MEGAFOODS STORES INC OF MESA ARIZ HEB'S PRICE VIGILANCE COULD EXPLAIN WHY SOUTH CENTRAL TEXAS IS THE CHEAPEST REGION IN INFORMATION RESOURCES' SURVEY OF THE STATE STILL TEXANS IN THE REGION FOUND IN 1993 THAT WHILE THE GETTING WAS GOOD IT WAS AS GOOD AS IT WAS GOING TO GET PRICES ON THE BASKET WERE UP 11 CENTS IN 1993 ACCORDING TO INFORMATION RESOURCES WEST TEXAS WEST TEXAS SEEMS TO BE THE REGION TH AT THE GROCERY WARS FORGOT DOUBLE AND TRIPLE COUPONS ARE RARE THE WEST TEXASNEW MEXICO REGION IN THE INFORMATION RESOURCES SURVEY WAS ALREADY THE MOST EXPENSIVE OF ALL TEXAS REGIONS IN 1993 AND THE PRICE OF THE BASKET ROSE 61 CENTS OVER 1992 LEVELS COMPETITION IS RARER HERE BECAUSE BIG CHAINS MOSTLY STEER CLEAR OF THE AREA WHICH IS SPARSELY POPULATED AND FAR FROM CHAINS' BIGCITY DISTRIBUTION CENTERS BUT DON'T WRITE OFF WEST TEXAS ENTIRELY WALMART STORES INC BASED IN BENTONVILLE ARK BUILT A SUPERCENTER IN ODESSA LAST YEAR OFFERING SOME NEW COMPETITION TO ALBERTSON'S WHICH HAD NEARLY HALF THE MARKET SHARE IN THAT CITY AT THE END OF LAST YEAR ACCORDING TO MARKET METRICS MEANWHILE IN EL PASO MIDLAND AND ODESSA A CHAIN OF STORES IS BECOMING A RIVAL TO ALBERTSON'S OUR PHILOSOPHY IS EVERYDAY LOW PRICES SAYS BUZ DOYLE VICE PRESIDENT OF MARKETING AT FURR'S SUPERMARKET INC FORMED IN 1991 BY A MANAGEMENTLED BUYOUT OF FURR'S INC SEE RELATED LETTERS TEXAS JOURNAL LETTERS TO THE EDITOR BACK TO THE CITY AND TEXAS JOURNAL LETTERS TO THE EDITOR THE WAR RAGES ON WSJ MARCH 16 1994 9402160195 YY94 MM03 9403150168 940315 WHO'S NEWS PETSTUFF INC PETSTUFF INC ROSWELL GA ARMAND PHILLIPPI WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT MARKETING AT THE CHAIN OF PETFOOD AND SUPPLY STORES MR PHILLIPPI 44 YEARS OLD WORKED MOST RECENTLY WITH THE AUTO PARTS CLUB 9403150167 940315 WHO'S NEWS NEWPORT CORP NEWPORT CORP IRVINE CALIF EDMUND K LANGLEY WAS ELECTED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER BOTH NEW POSITIONS AT THE MAKER OF PRECISION EQUIPMENT INVOLVING LASERS AND OPTICS MR LANGLEY 50 YEARS OLD PREVIOUSLY WAS VICE PRESIDENT AND GENERAL MANAGER OF THE OEM PRODUCTS DIVISION OF SCHULLER INTERNATIONAL INC IN DENVER 9403150166 940315 CLINTON TO PROPOSE BOORDA TO HEAD NAVAL OPERATIONS WASHINGTON ADM JEREMY MIKE BOORDA WHO HAS BEEN THE TOP US MILITARY OFFICER DIRECTLY INVOLVED IN NATO OPERATIONS IN BOSNIA WILL BE NOMINATED TO SUCCEED FRANK KELSO AS THE NAVY'S TOP OFFICER THE WHITE HOUSE SAID THE MOVE HAS BEEN EXPECTED SINCE LAST MONTH WHEN ADM KELSO SAID THAT BECAUSE OF THE TAILHOOK SCANDAL HE WOULD RETIRE TWO MONTHS EARLY ADM BOORDA HAS BEEN THE COMMANDER OF THE SOUTHERN FLANK OF THE NORTH ATLANTIC TREATY ORGANIZATION BUT WITH A PEACE AGREEMENT LOOKING MORE LIKELY IN BOSNIA THE MAIN NATO MISSION IN THAT REGION SOON COULD BECOME PEACEKEEPING WHICH MEANS THAT THE MOST PROMINENT MILITARY JOB WOULD BECOME THE ARMY'S IF CONFIRMED BY THE SENATE ADM BOORDA WHO ENLISTED IN THE NAVY IN 1956 AT AGE 17 WOULD BECOME THE FIRST PERSON EVER TO RISE THROUGH EVERY RANK IN THE SERVICE TO BECOME THE CHIEF OF NAVAL OPERATIONS HE IS 55 YEARS OLD THE AFFABLE NATIVE OF SOUTH BEND IND IS CONSIDERED ESPECIALLY GOOD AT HANDLING PEOPLE HIS MAJOR TASK IS LIKELY TO BE MAINTAINING THE MORALE AND READINESS OF THE SERVICE WHICH HAS BEEN SHAKEN BY THE POSTCOLD WAR DOWNSIZING THE TAILHOOK SCANDAL AND THE NAVY'S MINOR ROLE IN THE PERSIAN GULF WAR COMPARED WITH THE ARMY AND AIR FORCE 9403150165 940315 GRUMMAN SET TO GIVE DATA NORTHROP SAYS RIVAL OF MARTIN MARIETTA EXPECTS IT WILL RECEIVE INFORMATION THIS WEEK BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL GRUMMAN CORP AGREED TO DELIVER THIS WEEK TO NORTHROP CORP ITS UNWANTED SUITOR THE SAME DETAILED FINANCIAL INFORMATION THAT IT HAS GIVEN TO ITS PREFERRED PARTNER MARTIN MARIETTA CORP ACCORDING TO NORTHROP OFFICIALS THE NORTHROP STATEMENT FOLLOWED A LENGTHY MEETING OF GRUMMAN DIRECTORS YESTERDAY AFTERNOON A SPOKESMAN FOR GRUMMAN BASED IN BETHPAGE NY DECLINED TO COMMENT NORTHROP DEMANDED THE PROPRIETARY FINANCIAL DETAILS THURSDAY WHEN IT MADE ITS SURPRISE HOSTILE OFFER OF 60 A SHARE OR ABOUT 204 BILLION FOR GRUMMAN THE BID TOPPED MARTIN MARIETTA'S OFFER OF 55 A SHARE OR ABOUT 193 BILLION WHICH WAS PART OF A NEGOTIATED TRANSACTION BETWEEN EXECUTIVES OF MARTIN MARIETTA AND GRUMMAN A MAKER OF DEFENSEELECTRONICS SYSTEMS WITH EXPERTISE IN BUILDING NAVAL AIRCRAFT OUR CHOICE ALL ALONG HAS BEEN TO WORK WITH THE PEOPLE AT GRUMMAN ON A LEVEL PLAYING FIELD SAID KENT KRESA NORTHROP'S CHAIRMAN IN A STATEMENT HE CALLED GRUMMAN'S AGREEMENT TO PROVIDE INFORMATION A STEP IN THE RIGHT DIRECTION WE LOOK FORWARD TO CONTINUING TO HOLD DISCUSSIONS AS NORTHROP BEGAN ITS OFFICIAL TENDER OFFER FOR GRUMMAN SHARES MUCH OF THE FOCUS WAS ON MARTIN MARIETTA WHILE IT COULD WALK AWAY FROM THE BATTLE AND PERMIT NORTHROP TO PROCEED MANY ANALYSTS EXPECT THE BETHESDA MD DEFENSE CONTRACTOR TO SWEETEN ITS OFFER DURING THE NEXT FEW DAYS THEY SUGGEST ANOTHER POSSIBLE MOVE IS FOR MARTIN MARIETTA TO INITIATE A TAKEOVER OF NORTHROP OR TO ENCOURAGE ANOTHER COMPANY TO DO SO TO DERAIL THE LOS ANGELESBASED CONCERN'S BID FOR GRUMMAN ONE INVESTMENT BANKER CALLED SUCH A MANEUVER THE NUCLEARWAR STRATEGY THE STOCK MARKET CONTINUED TO SUPPORT THE TRADING PRICE OF NORTHROP'S SHARES DESPITE ITS PLANS TO LEVERAGE ITSELF HEAVILY FOR THE TAKEOVER THE STOCK CLOSED IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY AT 4225 UP 875 CENTS THAT CLOSING PRICE WAS UP ABOUT 4 FROM THE TRADING PRICE BEFORE NORTHROP ANNOUNCED ITS BID ALSO ON THE BIG BOARD MARTIN MARIETTA SHARES CLOSED AT 44875 UP 375 CENTS GRUMMAN'S CLOSED AT 65375 UP 625 CENTS IN ITS FILING WITH THE SECURITIES AND EXCHANGE COMMISSION YESTERDAY NORTHROP NOTED THAT IT HADN'T YET BEEN PROVIDED WITH NONPUBLIC FINANCIAL INFORMATION FROM GRUMMAN NOR HAD NORTHROP BEEN PERMITTED TO PERFORM A DUEDILIGENCE REVIEW ON MARCH 10 NORTHROP SAID IN A LETTER TO RENSO CAPORALI GRUMMAN'S CHAIRMAN THAT IT WANTED A CONFIRMATION THAT IT WOULD GET THE INFORMATION BY THE CLOSE OF BUSINESS YESTERDAY NORTHROP QUIETLY COURTED GRUMMAN FOR ABOUT A YEAR BEFORE IT WAS FROZEN OUT OF NEGOTIATIONS BY MARTIN MARIETTA ONE PERSON CLOSE TO GRUMMAN'S DELIBERATIONS SAID THAT THE COMPANY'S DIRECTORS APPEARED TO HAVE LITTLE CHOICE BUT TO DISCLOSE THE INFORMATION NORTHROP SOUGHT BECAUSE TO DECLINE TO DO SO WOULD HAVE INVITED LEGAL ACTION GRUMMAN ALREADY HAS BEEN HIT WITH THREE LAWSUITS BY SHAREHOLDERS WHO SAY THAT THE MARTIN MARIETTA OFFER IS TOO LOW THEY SEEK CLASSACTION STATUS FOR THEIR COMPLAINTS IN ITS OWN FILING YESTERDAY WITH THE SEC GRUMMAN SAID THAT EACH OF THE PLAINTIFFS HAD ALLEGED THAT THE CONSIDERATION TO BE PAID IS INADEQUATE AND UNFAIR THE FILING BY NORTHROP A MAKER OF AIRCRAFT MISSILES AND DEFENSE ELECTRONICS NOTED THAT A PREVIOUSLY ANNOUNCED TAKEOVER FINANCING PACKAGE OF 28 BILLION INCLUDES A FIVEYEAR REVOLVING CREDIT FACILITY AND A FIVEYEAR TERM LOAN NORTHROP ALSO SAID THAT AFTER MERGING THE TWO COMPANIES INTO A NEW ENTITY TO BE CALLED NORTHROP GRUMMAN CORP IT WOULD CONDUCT A REVIEW TO DETERMINE THE STATUS OF THE MERGED ENTITY'S HOLDINGS THE ISSUE OF HOW GRUMMAN OPERATIONS ASSETS AND EMPLOYEES WOULD BE TREATED UNDER ANY ACQUISITION HAS BEEN OF PARTICULAR CONCERN TO THE EMPLOYEES WHO CONTROL A THIRD OF GRUMMAN'S STOCK THROUGH A SAVINGS PLAN ADMINISTERED BY TRUSTEES WHO ALSO ARE GRUMMAN EXECUTIVES 9403150164 940315 WHO'S NEWS LA QUINTA INNS INC LA QUINTA INNS INC SAN ANTONIO THOMAS M TAYLOR A DIRECTOR OF THIS MOTEL CONCERN SINCE 1991 WAS NAMED CHAIRMAN SUCCEEDING FOUNDER SAM BARSHOP 64 YEARS OLD WHO IS STEPPING DOWN MR TAYLOR 51 IS PRESIDENT OF THOMAS M TAYLOR & CO IN FORT WORTH TEXAS HE OWNS 97 OF LA QUINTA'S COMMON STOCK 9403150163 940315 INTERNATIONAL BRAZIL'S CARDOSO EXPECTED TO QUIT SEEK PRESIDENCY BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO HARD ON THE HEELS OF UNVEILING BRAZIL'S NEW ANTIINFLATION PLAN FINANCE MINISTER FERNANDO HENRIQUE CARDOSO IS WIDELY EXPECTED TO RESIGN SHORTLY TO RUN FOR PRESIDENT IN THE OCTOBER ELECTIONS MR CARDOSO DENIES PRESS REPORTS THAT HE'S ALREADY INFORMED PRESIDENT ITAMAR FRANCO OF HIS INTENTIONS AND IS COY ABOUT HIS PLANS I'M UNDER A LOT OF PRESSURE BUT I HAVEN'T MADE UP MY MIND HE SAID RECENTLY MR CARDOSO RECENTLY SAID THE DECISION WAS CAUSING HIM ANGUISH BUT MR CARDOSO CAN'T PROCRASTINATE MUCH LONGER BRAZIL'S CONSTITUTION OBLIGES OFFICESEEKING MEMBERS OF THE EXECUTIVE TO LEAVE THEIR JOBS SIX MONTHS BEFORE ELECTIONS SO HE HAS UNTIL APRIL 2 TO DECIDE AND WHILE SOME SAY THAT HIS PERMANENCE IN HIS CURRENT POST IS CRUCIAL TO THE SUCCESS OF HIS ANTIINFLATION PLAN MOST HERE EXPECT HIM TO ARGUE THAT THE BEST WAY TO ENSURE ITS CONTINUITY IS TO ELECT HIM PRESIDENT HE'S IN A BIND SAYS ANDRE LARA RESENDE UNTIL RECENTLY BRAZIL'S DEBT NEGOTIATOR AND ONE OF THE ARCHITECTS OF THE STABILIZATION PLAN BY RESIGNING HE COULD BE ACCUSED OF ABANDONING HIS PLAN AND PURSUING UNCERTAIN POLITICAL AMBITIONS SHE SAYS TO STAY IN OFFICE IS DIFFICULT BECAUSE HE'S A NATURAL CANDIDATE HIS OPINION I THINK HE'S GOING TO RUN WHAT ALSO BOLSTERS MR CARDOSO'S CANDIDACY IS A WIDELY HELD PERCEPTION THAT HE STANDS THE BEST CHANCE OF DEFEATING LUIS INACIO LULA DA SILVA BETTER KNOWN AS LULA MR DA SILVA PRESIDENT OF THE LEFTWING WORKERS' PARTY WHICH ADVOCATES A STRONG ROLE FOR THE STATE AND A HALT TO BRAZIL'S FREEMARKET REFORMS HAS BEEN CONSISTENTLY LEADING OPINION POLLS WITH ABOUT 30 OF THE VOTE AND THE SEARCH FOR AN ANTILULA CANDIDATE HAS BECOME SOMETHING OF AN OBSESSION OF BRAZIL'S POLITICAL AND BUSINESS WORLDS EVEN BEFORE DECLARING HIS CANDIDACY MR CARDOSO REGISTERS ABOUT 13 SUPPORT IN POLLS HE'S THE ONE WHO CAN DEFEAT LULA SAYS CARLOS LANGONI A FORMER PRESIDENT OF BRAZIL'S CENTRAL BANK HE PLEASES THE MIDDLE CLASS IS TRUSTED BY THE BUSINESS COMMUNITY AND CAN SEDUCE THE WORKING CLASS BY EXPLOITING A LIKELY DROP IN INFLATION AT FIRST GLANCE THE 62YEAROLD MR CARDOSO'S POPULARITY IS BEFUDDLING FOR HIS POSITIVE IMAGE BELIES SEEMING INEFFECTIVENESS SINCE HE TOOK OVER LAST MAY AS MR FRANCO'S FOURTH FINANCE MINISTER IN EIGHT MONTHS ACCUMULATED INFLATION HAS REACHED 1483 OR 098 A DAY THE WORST UNDER ANY BRAZILIAN FINANCE MINISTER MOCKING MR CARDOSO'S TRACK RECORD CONGRESSMAN ROBERTO CAMPOS WAS QUOTED IN THE DAILY FOLHA DE SAO PAULO AS SAYING IN 10 MONTHS INFLATION DOUBLED OUR TAX REGIME WORSENED HE DIDN'T REFORM THE SOCIAL SECURITY SYSTEM HE DID NOTHING FOR PRIVATIZATION THUS HE'S A GENIUS WHO DESERVES TO BE ELECTED PRESIDENT BUT SUPPORTERS OF MR CARDOSO AND ANALYSTS SAY IT'S LESS HIS RECORD THAN HIS STYLE AND THE PROMISE OFFERED BY HIS PLAN BRAZIL'S SEVENTH IN EIGHT YEARS THAT MAKE HIM POPULAR URBANE AND SOPHISTICATED HE WAS A SOCIOLOGY PROFESSOR AT PARIS'S SORBONNE UNIVERSITY MR CARDOSO A SENATOR FROM SAO PAULO IS COMMENDED FOR HIS FORSAKING OF SHOCK THERAPY MEASURES INSTEAD HIS INFLATION FIGHT PLAN EMPHASIZES FISCAL AUSTERITY TO GRADUALLY CUT THE COUNTRY'S DEFICIT AND BRING DOWN INFLATION RATES WHILE LAYING THE GROUNDWORK TO INTRODUCE A NEW NATIONAL CURRENCY THOUGH THE PLAN IS COMPLEX AND WON'T SHOW IMMEDIATE RESULTS MANY HERE BELIEVE IT HAS A GREATER CHANCE OF SUCCESS THAN ANY OF ITS PREDECESSORS MR CARDOSO'S WILLINGNESS TO NEGOTIATE TIRELESSLY WITH CONGRESS HAS ALSO BEEN COMMENDED AND AT A TIME WHEN MANY OF BRAZIL'S TOP POLITICIANS ARE EMBROILED IN DAMAGING CORRUPTION SCANDALS MR CARDOSO IS VIEWED AS HONEST A QUALITY THAT POLLS SHOW IS IN GREAT DEMAND IN THE WAKE OF FORMER PRESIDENT FERNANDO COLLOR DE MELLO'S 1992 RESIGNATION AND A RECENT GRAFT SCANDAL INVOLVING SEVERAL TOP CONGRESSMEN TO ENSURE THAT HIS INFLATION PLAN IS KEPT ALIVE MR CARDOSO IS EXPECTED TO TRY TO NAME A MEMBER OF HIS TEAM TO REPLACE HIM AN EXPECTATION THAT HAS CALMED FINANCIAL MARKETS IT MAKES NO DIFFERENCE IF HE'S THERE OR NOT SAYS SAO PAULO BUSINESSMAN LAWRENCE PIH HE'LL LEAVE IT TO AN ALLY OF HIS AND WILL BE MONITORING IT CLOSELY 9403150162 940315 HEARD ON THE STREET PORTFOLIO MANAGERS LOVE MIDCAP STOCKS FOR THEIR BLEND OF SIZZLE AND STABILITY BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF THESE DAYS A MONEY MANAGER IS GOING TO NAME HIS CAT MIDCAP THESE STOCKS ARE FAST BECOMING PORTFOLIO MANAGERS' PETS A MIDCAP IS SIMPLY A MIDDLESIZED STOCK GENERALLY VALUED IN THE MARKET AT 250 MILLION TO 1 BILLION THOUGH A FEW ANALYSTS EXTEND MIDCAPS TO 3 BILLION CAP IS SHORTHAND FOR MARKET CAPITALIZATION THE TOTAL MARKET VALUE OF A COMPANY'S SHARES MIDCAPS COMBINE MUCH OF THE SIZZLE OF SMALLSTOCK RETURNS WITH A DASH OF BIGSTOCK SAFETY STUDIES SUGGEST INDEED SO FAR THIS YEAR MIDCAPS ARE OUTPERFORMING THE BEHEMOTHS JUST AS THEY DID DURING THE PAST TWO YEARS STANDARD & POOR'S MIDCAP INDEX ROSE CLOSE TO 1 FOR THE YEAR THROUGH FRIDAY WHILE BIGSTOCK INDEXES WERE ROUGHLY FLAT AND SMALL STOCKS ROSE MORE THAN 2 NOT TEMPTED YET CONSIDER THE RESULTS WHEN CLAUDIA MOTT AND MICHELE C ESCHERT OF PRUDENTIAL SECURITIES IN COOPERATION WITH THE UNIVERSITY OF CHICAGO'S CENTER FOR RESEARCH IN SECURITY PRICES STUDIED PERFORMANCE FOR 1926 TO 1992 THE RESEARCHERS PUT THE LARGEST 20 OF STOCKS INTO A LARGECAP GROUP THE NEXT 30 INTO THE MIDCAP GROUP AND DEEMED THE REST SMALLCAP MIDCAPS PRODUCED AN AVERAGE COMPOUND ANNUAL RETURN OF 113 BOUNDING AHEAD OF THE 97 FOR LARGE CAPS SMALLCAP STOCKS DID EVEN BETTER AT 117 BUT WERE MUCH RISKIER MEANING THEY HAD A MUCH GREATER TENDENCY TO ZIGZAG IN PRICE MS MOTT POINTS OUT THAT SMALL CAPS ARE ALSO MORE EXPENSIVE FOR INVESTORS TO TRADE SO WHICH MIDCAP STOCKS LOOK ATTRACTIVE NOW THE ACCOMPANYING TABLE SHOWS SOME IN THE 250 MILLION TO 1 BILLION RANGE THAT LOOK GOOD STATISTICALLY MONEY MANAGERS CAUTION THAT THERE'S WORK TO DO BEFORE SNAPPING UP A STOCK THAT LOOKS GOOD ON A COMPUTER SCREEN TABLES LIKE THIS SHOULD BE CONSIDERED A STARTING POINT FOR ANALYSIS THEY WARN A HANDFUL OF MARKET PROFESSIONALS WERE ASKED WHAT MIDCAP STOCK THEY WOULD BUY NOW IF THEY COULD BUY ONLY ONE DAVID KATZ OF MATRIX ASSET MANAGEMENT WOULD CHOOSE AT CROSS A LINCOLN RI PEN MAKER IT WAS AN INVESTOR FAVORITE FOR MOST OF THE 1980S BUT THEN THE STOCK SANK FROM A 1989 PEAK OF 41 TO YESTERDAY'S 14 1/2 UP 1/8 MANAGEMENT GOT VERY FAT AND HAPPY SAYS MR KATZ CROSS WASN'T ALERT TO INTENSIFYING COMPETITION FROM RIVAL PEN MAKERS SUCH AS MONT BLANC AND WATERMAN WHICH GOBBLED UP HIGHEND BUSINESS HE SAYS NOR DID CROSS CONTROL COSTS WELL BUT THE COMPANY FINALLY GOT SHOCKED INTO WHAT MR KATZ SEES AS A TURNAROUND IN PROGRESS IT HAS CUT COSTS GROWN MORE COMPETITIVE AND SUPPLEMENTED ITS TRADITIONAL THIN GIFT PEN WITH A NEW TOWNSEND BRAND PEN WITH A WIDER GIRTH MEANTIME CROSS SHAREHOLDERS ENJOY A 44 DIVIDEND YIELD WHICH MR KATZ REGARDS AS SECURE SETH GLICKENHAUS HEAD OF GLICKENHAUS & CO A NEW YORK MONEYMANAGEMENT FIRM LIKES STATESMAN GROUP A DES MOINES IOWA INSURANCE COMPANY THAT SPECIALIZES IN TAXDEFERRED ANNUITIES THE STOCK WAS OFF 1/8 AT 11 1/8 YESTERDAY WHICH MR GLICKENHAUS CONSIDERS A STEAL HE FIGURES STATESMAN WHICH EARNED 139 A SHARE LAST YEAR WILL EARN 165 THIS YEAR NOT COUNTING TRADING PROFITS THE STOCK IS LANGUISHING NOT FAR ABOVE BOOK VALUE EVEN THOUGH THE COMPANY ROUGHLY DOUBLED ITS PREMIUM VOLUME LAST YEAR TO MORE THAN 1 BILLION WHY HAS THE STOCK BEEN WEAK MR GLICKENHAUS BLAMES A LACK OF AN ANALYTICAL FOLLOWING PLUS GENERAL WEAKNESS AMONG INSURANCE STOCKS AS INTEREST RATES HAVE RISEN LATELY IN MR GLICKENHAUS'S EYES STATESMAN ANNUITIES AREN'T AN ESPECIALLY GOOD DEAL FOR THE CONSUMER BUT HE SAYS STATESMAN'S CRACK SALES FORCE HAS NO TROUBLE SELLING THE PRODUCT THAT SALES FORCE HE SAYS MIGHT WELL BE COVETED BY OTHER COMPANIES THAT COULD ACQUIRE STATESMAN STATESMAN MANAGEMENT HAS INDICATED THE COMPANY WOULD BE FOR SALE AT THE RIGHT PRICE BUT THAT PRICE IS FAR HIGHER THAN TODAY'S MARK BOYAR HEAD OF BOYAR ASSET MANAGEMENT IS COMFORTABLE WITH US SHOE A MARKET LAGGARD FOR YEARS HE SAYS PRESSURE FROM INSTITUTIONAL SHAREHOLDERS WILL FORCE US SHOE TO SPLIT UP ITS DIVISIONS THE WAY SEARS ROEBUCK DID JUST AS WITH SEARS HE SAYS A RELUCTANT MANAGEMENT WILL EVENTUALLY FIND THAT THE SUM OF THE PARTS WILL BE MUCH MORE THAN THE MARKET CURRENTLY PAYS FOR THE WHOLE US SHOE SHOULD BE SPLIT INTO THREE PARTS HE SAYS LENSCRAFTERS WHICH PRODUCES EYEGLASSES OFTEN IN AN HOUR THE SHOE DIVISION WHOSE BRANDS INCLUDE CAPEZIO EASY SPIRIT PAPPAGALLO AND SELBY AND THE RETAIL DIVISION NOTABLY THE 735STORE WOMEN'S APPAREL CHAIN CASUAL CORNER A PROPOSAL TO DO JUST THAT IS BEING PUSHED BY ALFRED KINGSLEY OF GREENWAY PARTNERS A NEW YORK FIRM THAT HOLDS SOME TWO MILLION US SHOE SHARES THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM IS ALSO PUSHING FOR SOME SORT OF SHAKEUP MR BOYAR SAYS IN THE MEANTIME HE SAYS A TURNAROUND IS ALREADY UNDERWAY AIDED BY COSTCUTTING IF THE GREENWAY PROPOSAL GOES THROUGH HE BELIEVES THE STOCK WHICH TRADED AT 16 1/4 YESTERDAY WOULD MOVE INTO THE 20S ULTIMATELY TO 30 OR MORE BRETT BRUBAKER PRESIDENT OF ABRAHAM & SONS IN CHICAGO FAVORS ROLLINS ENVIRONMENTAL SERVICES A HAZARDOUSWASTE DISPOSAL COMPANY THAT HAS SEEN ITS OWN STOCK VALUE INCINERATED THE STOCK SOLD FOR MORE THAN 20 IN THE LATE 1980S BUT TRADED YESTERDAY AT 5 THEY HAVE BEEN LOSING MONEY SAYS MR BRUBAKER BUT THE WORST IS PROBABLY BEHIND THEM HE SAYS ROLLINS IS STILL ONE OF THE LEADING COMPANIES IN ITS FIELD AND HAS ALMOST NO LONGTERM DEBT THIS IS A CHANCE HE SAYS FOR INVESTORS TO GET A HIGHQUALITY COMPANY AT THE LOWEST VALUATIONS OF THE LAST 10 YEARS THE HAZARDOUSWASTE DISPOSAL BUSINESS IS STARTING TO PICK UP WITH THE ECONOMY SAYS MR BRUBAKER AND THERE ARE SOME CHANGES GOING ON IN WASHINGTON THAT SHOULD HELP THEM CHARLES BIDERMAN EDITOR OF MARKET TRIM TABS A STOCKMARKET NEWSLETTER IN SANTA ROSA CALIF LIKES CABOT OIL & GAS WHICH HE SAYS EXCELS IN GETTING THE BIGGEST POSSIBLE ADDITIONS TO RESERVES FOR EACH DOLLAR IT SPENDS ON EXPLORATION CABOT IS MAINLY A NATURALGAS COMPANY AND JUST AGREED TO BOOST ITS GAS RESERVES SUBSTANTIALLY BY ACQUIRING A SUBSIDIARY OF WASHINGTON ENERGY CABOT CLOSED YESTERDAY AT 21 A VERY HIGH MULTIPLE OF THE COMPANY'S EARNINGS BUT A REASONABLE MULTIPLE OF CASH FLOW ACCORDING TO MR BIDERMAN 9403150161 940315 ECONOMY JANUARY INVENTORIES FELL LESS THAN 01 FROM PREVIOUS MONTH WASHINGTON BUSINESS INVENTORIES IN JANUARY SLIPPED LESS THAN 01 FROM DECEMBER'S LOW LEVEL FALLING TO 87290 BILLION FROM 87307 BILLION THE COMMERCE DEPARTMENT SAID LOW INVENTORIES OFTEN MEAN COMPANIES ARE ORDERING MORE TO REPLACE WHAT HAS BEEN SOLD THIS TRANSLATES INTO INCREASED PRODUCTION AND ECONOMIC GROWTH THE INVENTORYTOSALES RATIO CONTINUED AROUND 10YEAR LOWS THE RATIO THE NUMBER OF MONTHS IT WOULD TAKE TO DEPLETE STOCKPILES AT THE CURRENT SALES PACE ROSE TO 143 FROM DECEMBER'S REVISED 142 THE RATIO INCREASED BECAUSE OF SOMEWHAT SLOWER SALES OF DURABLE GOODS SUCH AS AUTOS AND REFRIGERATORS SALES OF NONDURABLES SUCH AS FOOD AND CLOTHING WHICH TYPICALLY LAG BEHIND DURABLES DURING RECOVERIES IMPROVED IT IS A FAIRLY BULLISH REPORT FOR THE FUTURE SAID DONALD RATAJCZAK DIRECTOR OF GEORGIA STATE UNIVERSITY'S ECONOMIC FORECASTING CENTER DESPITE THE COLD WEATHER IN THE NORTHEAST AND THE EARTHQUAKE IN LOS ANGELES SALES REMAINED STRONG AND INVENTORIES LEAN THE ECONOMY IS NOT TAKING OFF LIKE A ROCKET BUT THERE'S GOOD GROWTH SAID KURT KARL OF THE WEFA GROUP IN SUBURBAN PHILADELPHIA THERE'S NOTHING TO WORRY ABOUT BUT NOTHING TO WRITE TO GRANDMA ABOUT THE FIGURES ARE ADJUSTED FOR SEASONAL CHANGES HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN JANUARY THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9403150160 940315 TECHNOLOGY BASEBALL STATISTICS MAY HIT DESKTOPS BEFORE OPENING DAY FIRST ONLINE' DATA SERVICE FROM MICROSOFT TO FEATURE SCORES OF NATIONAL PASTIME BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO MICROSOFT CORP THE WORLD'S BIGGEST SOFTWARE MAKER GAVE A SURPRISE SNEAK PREVIEW AT A SOFTWARE CONFERENCE HERE OF ITS FIRST PRODUCT THAT WILL TAKE ADVANTAGE OF ONLINE DATA SERVICES IN RECENT MONTHS THERE HAS BEEN MUCH SPECULATION ABOUT WHETHER AND HOW MICROSOFT WILL TAKE ADVANTAGE OF THE BURGEONING DEMAND FOR UPTOTHEMINUTE DATA THAT IS SENT TO PEOPLE INSTANTANEOUSLY OVER TELEPHONE LINES COMPANIES THAT SELL ONLINE DATA FEAR THAT MICROSOFT COULD TAKE A BIG CHUNK OF THIS BUSINESS BECAUSE OF ITS STRENGTH IN COMPUTER PROGRAMS MICHAEL MAPLES A SENIOR EXECUTIVE VICE PRESIDENT AT THE REDMOND WASH MICROSOFT DEMONSTRATED AT A MEETING OF THE SOFTWARE PUBLISHERS ASSOCIATION A COMPUTER PROGRAM THAT STORES HISTORICAL DATA ON PROFESSIONAL BASEBALL TEAMS PLAYERS AND LEAGUES MR MAPLES SAID THE PROGRAM WHICH MICROSOFT COULD BEGIN SELLING WITHIN 30 DAYS WILL HAVE THE POWER TO TAP INTO A SERVICE THAT DELIVERS DAILY BASEBALL SCORES AND STATISTICS FOR 150 A DAY MR MAPLES SAID THAT THE RESPONSIBILITY FOR ACTUALLY SUPPLYING THE FRESH STATISTICS IS BEING HANDLED BY AN OUTSIDE COMPANY WHICH HE DIDN'T NAME ONLINE SERVICES ARE SEEN BY MICROSOFT AS A WAY TO INCREASE REVENUE BEYOND THE SALE OF SOFTWARE RATHER THAN LAUNCHING AN ONLINE NETWORK TO COMPETE WITH AMERICA ONLINE PRODIGY AND OTHER FULLFLEDGED SERVICES MICROSOFT'S APPROACH OF ITS BASEBALLINFORMATION PRODUCT SUGGESTS THAT IT WILL PURSUE SPECIFIC NICHES INSTEAD MR MAPLES SAID THE ONLINE SERVICE WOULD ALSO BE ABLE TO DISTRIBUTE BASEBALL ADDON PRODUCTS MADE EITHER BY MICROSOFT OR INDEPENDENT SUPPLIERS PEOPLE FAMILIAR WITH MICROSOFT'S PLANS SAY ITS BASEBALL DAILY SERVICE WILL BE FOLLOWED BY OTHER ONLINE SERVICES THAT TIE INTO MICROSOFT PROGRAMS AIMED AT CONSUMERS MR MAPLES WOULD NOT COMMENT ON OTHER FUTURE PRODUCTS BUT HE SAID THAT MICROSOFT INTENDED TO TAKE ADVANTAGE OF A TECHNOLOGY TREND THAT MAKES POSSIBLE THE INTEGRATION OF SOFTWARE PRODUCTS WITH ONLINE SERVICES 9403150159 940315 TECHNOLOGY ORACLE TO INTRODUCE 2 DATABASE PROGRAMS CHALLENGE MICROSOFT REDWOOD SHORES CALIF ORACLE CORP GIRDING FOR AN ATTACK ON RIVAL MICROSOFT CORP SAID IT PLANS TO INTRODUCE TWO DATABASE PROGRAMS FOR PERSONAL COMPUTERS LATER THIS YEAR THE LEADING SUPPLIER FOR HIGHEND DATABASE SOFTWARE ORACLE HAD BEEN CONTENT TO ALLOW MICROSOFT TO DOMINATE THE MARKET FOR LOWCOST PC DATABASES ORACLE SAID IT PLANS TO OFFER ITS OWN PRODUCTS TO COMPETE AGAINST MICROSOFT'S ACCESS DESKTOP PROGRAM AND ITS DATABASE FOR NETWORKS INDUSTRY OBSERVERS SAID ORACLE SHOULD TAKE A BITE OUT OF MICROSOFT'S BUSINESS BUT NOT A VERY BIG CHUNK INITIALLY IT'S GOING TO BE VERY HARD FOR ORACLE TO DISTINGUISH THEMSELVES FROM MICROSOFT SAID BOBBY CAMERON AN ANALYST WITH THE FORRESTER GROUP BOSTON ORACLE SAID IT PLANS TO RELEASE LATER THIS YEAR A COMPETITOR TO ACCESS A MICROSOFT PROGRAM THAT IS THE BIGGESTSELLING PC DATABASE AND IN SEPTEMBER ORACLE SAID IT WILL INTRODUCE A PRODUCT CALLED ORACLE WORKGROUP SERVER WHICH IS DESIGNED TO SUPPORT NETWORKS OF 10 TO 50 PCS THE PRODUCT WHICH ORACLE SAID WILL SELL FOR 995 FOR TWO USERS OR 2995 FOR 10 USERS WILL RUN IN CONJUNCTION WITH NETWORKING SOFTWARE FROM MICROSOFT INTERNATIONAL BUSINESS MACHINES CO AND NOVELL INC ORACLE SAID THAT IT WILL BEGIN SHIPPING TODAY TEST VERSIONS OF ITS WORKGROUP PRODUCT TO DEVELOPERS OF APPLICATIONS THAT TAKE ADVANTAGE OF IT MR CAMERON SAID THAT ORACLE'S OFFERING WILL PUT PRESSURE ON MICROSOFT'S COMPARABLE PRODUCT CALLED SQL SERVER AND MAY EVEN GIVE ORACLE A TECHNICAL ADVANTAGE BECAUSE IT SELLS MOREPOWERFUL DATABASES BUT THIS PROBABLY WILL COME AT THE EXPENSE OF SOME OF ORACLE'S HIGHEND REVENUE BECAUSE OF AGGRESSIVE PRICING ON ITS PC PRODUCTS 9403150158 940315 INTERNATIONAL REGULATORS IN CHINA SPUR A SHARE RALLY BY JOSEPH KAHN STAFF REPORTER OF THE WALL STREET JOURNAL SHANGHAI CHINA CHINESE SECURITIES REGULATORS IGNITED A SHARE RALLY MONDAY BY PROMISING TO SLOW THE FLOW OF NEW SHARE LISTINGS THEY FAILED HOWEVER TO DISPEL LONGERTERM QUESTIONS ABOUT THEIR ABILITY TO FOSTER A MARKET SUBJECT TO SUPPLY AND DEMAND RATHER THAN OFFICIAL WHIMS LIU HONGRU CHAIRMAN OF THE CHINA SECURITIES REGULATORY COMMISSION ANNOUNCED A FOUR NO'S POLICY ON STOCK MARKET REFORM THE MOST IMPORTANT OF WHICH WILL DELAY NEW LISTINGS AND POSTPONE A CAPITAL GAINS TAX ON SHARE TRADING THE MOVES DELIGHTED CHINA'S STOCK MARKET INVESTORS MOST OF THEM PRIVATE INDIVIDUALS BUYERS SENT THE SHANGHAI CLASS A SHARE INDEX SOARING 1024 AND PUSHED THE SHENZHEN MARKET UP 513 TURNOVER SET NEW RECORDS THE MARKETS ARE OPEN ONLY TO CHINESE CITIZENS CHINA'S CLASS B SHARE MARKETS OPEN TO FOREIGN INVESTORS WERE FLAT FOR THE DAY THOUGH ANALYSTS SAID AN INVIGORATED A SHARE MARKET PROBABLY WOULD GIVE A MODEST BOOST TO B SHARES IN THE NEAR FUTURE MONDAY'S SHARP REBOUND CAME AFTER MONTHS OF STEADY DECLINE ON THE A SHARE MARKETS WHERE PRICES HAD FALLEN ALMOST 60 OFF FEBRUARY 1993 HIGHS RETURNING TO 1992 LEVELS MANY STOCKHOLDERS BITTERLY BLAMED THE GOVERNMENT'S HEAVY REGULATORY HAND FOR THEIR LOSSES INVESTORS IN SHENZHEN STAGED A DEMONSTRATION OUTSIDE THE SHENZHEN SECURITIES EXCHANGE LAST WEEK TO DEMAND CHANGES IN GOVERNMENT POLICY TOWARD THE MARKETS LAST MONTH SHENZHEN SECURITIES OFFICIALS ANNOUNCED A UNILATERAL MOVE TO REDUCE THE NUMBER OF COMPANIES PERMITTED TO LIST LOCALLY BUT THE CENTRAL GOVERNMENT CRITICIZED SHENZHEN OFFICIALS FOR ACTING WITHOUT AUTHORIZATION MR LIU'S CONCESSION MAY HAVE REFLECTED THE GOVERNMENT'S FEAR OF ANY SOCIAL UNREST BUT THE DELAY IN NEW LISTINGS IS ALSO A RECOGNITION THAT CHINA'S STATEDIRECTED TIMETABLE FOR EXPANDING STOCK MARKETS IS FAR TOO AMBITIOUS GIVEN THE SPECULATIVE INCLINATIONS OF MOST TRADERS AND THE MARKET'S CURRENT DOLDRUMS INVESTORS HAVE DEMANDED A SLOWDOWN IN THE PACE OF NEW LISTINGS BECAUSE THEY COMPLAIN THAT NEW ISSUES SPREAD A SMALL POOL OF CAPITAL TOO THIN AND UNDERMINE STILL HEAVILY INFLATED STOCK PRICES IN THAT SENSE THE NEW POLICY MARKS A VICTORY OVER THE GOVERNMENT FOR THE PRIVATE SECTOR BUT MR LIU'S ANNOUNCEMENT ALSO DEMONSTRATES THE DEGREE TO WHICH CHINA'S STOCK MARKETS REMAIN UNDER GOVERNMENT CONTROL BEIJING DICTATES ANNUAL QUOTAS FOR NEW STOCK LISTINGS AND DETERMINES THE TYPES OF COMPANIES QUALIFIED TO LIST THE CENTRAL GOVERNMENT ALSO RESERVES THE RIGHT TO ALTER ITS PLANS OR REVISE SECURITIES REGULATIONS AT A MOMENT'S NOTICE LIKE MANY OTHER ELEMENTS OF THE CENTRAL PLAN HOWEVER CONTROLS ON THE STOCK MARKET ARE NOT OFTEN EFFECTIVE BEIJING'S TARGETS FOR EXPANSION OF THE STOCK MARKET APPEAR NO MORE REALISTIC THAN ITS POLICIES TO CONVERT STATEOWNED BANKS INTO COMMERCIAL BANKS OR TO LEGISLATE THE COUNTRY'S ECONOMIC GROWTH RATE MONDAY'S ANNOUNCEMENT IS CONFIRMATION THAT THE GOVERNMENT STILL WANTS TO CONTROL STOCK PRICE FLUCTUATIONS SAID LAWRENCE ANG A CHINA SHARE ANALYST IN HONG KONG IT'S NOT THE KIND OF SIGNAL THAT SHOULD GIVE PROFESSIONAL INVESTORS MUCH CONFIDENCE THE CHINA SECURITIES REGULATORY COMMISSION ALSO TOOK TWO OTHER STEPS TO CAP THE NUMBER OF SHARES IN CIRCULATION IT CRACKED DOWN ON THE COMMON PRACTICE OF ALLOCATING BONUS SHARES IN PLACE OF STOCK DIVIDENDS AND DECIDED THAT IT WILL NOT ALLOW SHARES HELD BY STATECONTROLLED ENTITIES TO BE TRADED ON THE MARKET ANY TIME SOON FINALLY THE GOVERNMENT HAS POSTPONED INDEFINITELY A CAPITAL GAINS TAX ON SHARE TRANSACTIONS ORIGINALLY ANNOUNCED AS LAW JAN 1 9403150157 940315 LEISURE & ARTS A POET SHAPED BY THE FACTORY AND THE FOREST BY AMY GAMERMAN NEW YORK IN SUMMING UP HERSONTHEPOET'S CAREER PHILIP LEVINE'S MOTHER PUT IT THIS WAY PHILIP SET OUT TO PROVE THERE IS SOCIAL MOBILITY IN AMERICA SHE SAID SO HE GOT BORN SMACKDAB IN THE MIDDLE OF THE MIDDLE CLASS GREW UP IN THE LOWER MIDDLE CLASS AND THEN AS AN ADULT JOINED THE WORKING CLASS HE GOT IT BACKWARD MR LEVINE OWES HIS SUCCESS TO DOWNWARD MOBILITY IN HIS YOUTH HE HEAVED CAR PARTS DOWN ASSEMBLY LINES JACKHAMMERED HIGHWAYS AND SCOOPED SOAP OUT OF OVENS DECADES LATER HE IS STILL RETURNING TO THOSE AWFUL JOBS IN LUMINOUS POEMS THAT EVOKE WITH ACIDETCHED IMAGERY BLUECOLLAR WORK AND THE GRACE OF PEOPLE WHO SWEAT AT IT NOW MR LEVINE HAS REVISITED HIS PAST MORE PROSAICALLY IN AN IDIOSYNCRATIC MEMOIR THE BREAD OF TIME KNOPF 296 PAGES 23 THE MEMOIR'S COLLECTED ESSAYS A FEW OF WHICH OWE MORE TO FICTION THAN FACT LEAPFROG ACROSS THE POET'S LIFE BUT THEIR LINCHPIN IS THE DETROIT OF MR LEVINE'S YOUTH THE JOBS HE HAD THERE THE POEMS HE BEGAN TO WRITE NOW 66 MR LEVINE HASN'T LIFTED A TRANSMISSION CASE OR A JACKHAMMER IN AGES THE MAN I MET FOR LUNCH DURING A BRIEF VISIT HERE FROM HIS HOME IN FRESNO LOOKS LIKE THE RETIRED COLLEGE PROFESSOR THAT HE IS ALTHOUGH HE PEPPERS HIS COMMENTS WITH BARNYARD EXPLETIVES HIS MANNER IS AS MILD AS A KINDERGARTEN TEACHER'S AND HIS SLENDER FRAME SEEMS BETTER SUITED TO TENNIS THAN HEAVY LIFTING BY HIS OWN ADMISSION HE'S JUST A SHADOW OF HIS FORMER SELF I HAD THE KIND OF BODY THAT RESPONDED VERY QUICKLY TO THE KIND OF WORK I WAS DOING HE SAID MY HANDS AND WRISTS AND FOREARMS AND ARMS WOULD GET SO MUCH THICKER I'D PICK UP A PEN AND MY HANDS WOULD FEEL ALMOST TOO BIG WORKING WITH CARS WAS SOMETHING OF A FAMILY TRADITION MR LEVINE'S FATHER A RUSSIANJEWISH IMMIGRANT RAN A USED AUTO PARTS BUSINESS WITH HIS FATHERINLAW HE DIED AFTER A MINOR OPERATION WHEN PHILIP WAS JUST FIVE AND THE FAMILY WAS PITCHED INTO FINANCIAL TURMOIL MR LEVINE'S MOTHER WENT TO WORK AS A SECRETARY TO SUPPORT HER THREE SONS THE FAMILY WHICH HAD BEEN FAIRLY COMFORTABLE BECAME LESS AND LESS COMFORTABLE HE GOT HIS FIRST JOB WHEN HE WAS 13 AS A MESSENGER FOR A DOWNTOWN JEWELRY STORE A YEAR LATER IN 1942 HE WORKED AT A SOAP FACTORY IN HIS POEM GROWTH HE WRITES MY JOB/WAS ALWAYS THE RACKS AND THE OVENS /TWO LOW CEILINGED METAL ROOMS/THE COLOR OF SICK SKIN IT SCARED ME HE RECALLED OF COURSE I DIDN'T KNOW THIS IS WHAT'S HAPPENING TO JEWS IN EUROPE THEY'RE BEING TRANSFORMED INTO SOAP DETROIT IN THE '40S WAS A RELATIVELY SAFE HAVEN FOR A JEWISH KID BUT NO PARADISE ONE FRIDAY NIGHT MR LEVINE AND HIS TWIN BROTHER WENT BACK TO HIS PUBLIC SCHOOL TO RETRIEVE SOME FORGOTTEN HOMEWORK AND DISCOVERED A DANCE IT BECAME CLEAR AS WE SAW THESE KIDS THERE WHY WE WERE NOT INVITED NEITHER WERE THE ITALIANS NEITHER WERE THE ARMENIANS NO JEWS HE SAID THESE KIDS WE WENT TO SCHOOL WITH WHO WE THOUGHT WERE OUR DEAREST FRIENDS WERE CHEATING US ENCOUNTERS SUCH AS THAT ONE FOSTERED A BURGEONING CLASS RESENTMENT EARLY ON HE AND HIS TWIN MADE A PACT WE AGREED THAT THE WORLD WAS BASED ON EXPLOITATION THE POWERFUL EXPLOITED THE LESS POWERFUL AND GOT RICH DOING IT AND THAT STUNK AND WE WOULDN'T TAKE PART IN THAT HE SAID BETTER TO BE EXPLOITED WE THOUGHT THEN THAN EXPLOIT OTHERS BY THEN HIS FAMILY WAS LIVING IN A HOUSE RECENTLY PURCHASED BY HIS MOTHER ON THE OUTSKIRTS OF THE CITY ON A STREET BORDERED BY AN UNDEVELOPED STRETCH OF WOODS IT WAS ON THE WRONG SIDE OF THE TRACKS BUT THERE WERE BIRDS AND THERE WERE THESE FABULOUS TREES AND YOU COULD SEE THE STARS BECAUSE THERE WERE NO FACTORIES IN THAT NEIGHBORHOOD IN THOSE WOODS MR LEVINE FIRST ENTERED POETRY AFTER DINNER AND ALL THE ARGUING I WOULD GO OUT INTO THIS AREA AND I WOULD HOW CAN I PUT IT I WOULD START RECITING POEMS MY OWN I WOULD MAKE THEM UP HE SAID THE POEMS WERE VERY WHITMANIAN LARGE LONG INCANTATORY POEMS ABOUT THE GLORY OF THE COSMOS AND THE STARS AND MY ATONENESS WITH THE TREES AND ANIMALS AND WHO KNOWS WHAT HE SAID WITH A DISMISSIVE SMILE HE WENT TO DETROIT'S WAYNE STATE UNIVERSITY WITH THE AMBITION OF BECOMING A POET IRONICALLY IT WAS IN COLLEGE THAT HIS LIFE IN THE WORKING CLASS BEGAN I HAD A NOTION IF I LIVED ON MY WITS THAT MY WITS WOULD BE COMPROMISED IN SOME WAY AND MY WRITING WOULD BE COMPROMISED HE SAID BUT IF I COULD LIVE ON THE LABORS OF MY BODY AND I WAS A VERY STRONG YOUNG GUY THAT MY MIND MY IMAGINATION WOULD NOT BE SULLIED WHILE HE WAS STILL IN COLLEGE HE GOT A FACTORY JOB BUILDING TRANSMISSION CASES LATER ON HE CLIMBED DOWN INTO TANKS TO MIX UP BATCHES OF ACID FOR PLATING PLUMBING PARTS THE EXPERIENCE WHICH TURNED HIS PANTS CUFFS TO LACE PROVIDED FODDER FOR HIS POEM FEAR AND FAME I WOULD DESCEND/STEP BY SLOW STEP INTO THE DIM WORLD/OF THE PICKLING TANK AND THERE PREPARE/THE NEW SOLUTIONS IT WAS VERY EPIC HE SAID DESCENDING INTO THE NETHERWORLD THE UNDERWORLD TO GET THE SECRET WHAT HAVE YOU DANTE DESCENDS INTO HELL STILL IT WASN'T AS HELLISH AS HIS JOB HANDLING SECTIONS OF REDHOT STEEL FOR CHEVROLET GEAR AND AXLE WHICH HE DESCRIBES IN HIS BOOK AS SO HARD THE WORK SO HEAVY AND MONOTONOUS THAT AFTER AN HOUR OR TWO I WAS SURE EACH NIGHT THAT I WOULD NEVER LAST THE SHIFT HIS ONE ATTEMPT BACK THEN TO LIVE OFF HIS WITS WRITING ADVERTISING COPY ENDED AFTER A DAY ALL SILLINESS ALL LIES HE SAID WHY IS THIS BANK BETTER THAN THAT BANK THEY'RE ALL THIEVES HE QUIT AND RETURNED TO FACTORY WORK THE IRONY IS THAT WOULD BECOME THE SUBJECT MATTER FOR MY POETRY HE SAID I NEVER WROTE ABOUT FACTORY WORK AT THE TIME NEVER I WAS WRITING CITYSCAPE POEMS NATURE POEMS DOOM POEMS THE POEMS OF A YOUNG GUY WHO FEELS HOPELESS IN HIS ENVIRONMENT FINALLY THAT HOPELESSNESS FUELED BY A DISASTROUS FIRST MARRIAGE PROPELLED HIM OUT OF DETROIT IN 1953 HE WENT OFF TO THE IOWA WRITERS' WORKSHOP TO STUDY POETRY WITH ROBERT LOWELL AND JOHN BERRYMAN WHO IS MEMORABLY PORTRAYED IN THE BREAD OF TIME HE MET THE WOMAN WHO WOULD BECOME HIS SECOND WIFE TRADED IN FACTORY WORK FOR TEACHING AND NEVER LIVED IN DETROIT AGAIN BUT HE CONTINUED TO RETURN THERE AND TO THE FACTORIES HE HAD FLED IN HIS POETRY NOW THE POET WHO ADOPTED WALT WHITMAN'S LINE VIVAS FOR THOSE WHO HAVE FAILED AS HIS EPIGRAPH IS SOMETHING OF A SUCCESS WITH A SLEW OF AWARDS TO PROVE IT WHAT WORK IS HIS MOST RECENT COLLECTION NETTED MR LEVINE HIS SECOND NATIONAL BOOK AWARD ONCE HE CONSIDERED HIMSELF AN ANARCHIST NOW HE'S A WELLESTABLISHED POET WITH DOUBTS ABOUT ESTABLISHMENTS IN GENERAL ASKED WHAT HIS WORST JOB WAS HE PAUSED AWHILE BEFORE ANSWERING I'D SAY IT'S A TOSSUP WORKING AT CHEVROLET GEAR AND AXLE AND TEACHING AT PRINCETON BUT IF THE SUCCESS THAT HIS DOWNWARD MOBILITY MADE POSSIBLE SEEMS STRANGE HE IS GRATEFUL FOR IT IN A WAY IT'S BEEN ABLE TO REDEEM THE PAST WELL YOU HAD THIS BAD MARRIAGE AND DID ALL THOSE YEARS IN FACTORY WORK BUT NOW LOOK AT THE POEMS YOU GOT OUT OF ALL THAT MR LEVINE REFLECTED WHAT COULD HAVE LOOKED LIKE A BUNCH OF EXTRAORDINARY BLUNDERS IT NOW MAKES THEM ALL LOOK LIKE WISE MOVES 9403150156 940315 KINGSLEY SEEKS SYNERGY' AT US SHOE VIA PLAN TO SPLIT RETAILER INTO 3 ENTITIES BY WARREN GETLER AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK ALFRED KINGSLEY A NEW YORK INVESTOR AND A FORMER ADVISER TO CARL ICAHN IS PUSHING A PROPOSAL THAT RETAILER US SHOE CORP BE BROKEN UP INTO THREE SEPARATE COMPANIES GREENWAY PARTNERS LP THE MONEYMANAGEMENT FIRM RUN BY MR KINGSLEY HAS RECENTLY CONTACTED MORE THAN TWO DOZEN INSTITUTIONAL INVESTORS TO DRUM UP SUPPORT FOR THE PROPOSAL THE GREENWAY FIRM OWNS TWO MILLION US SHOE SHARES OR 43 OF OUTSTANDING COMMON STOCK THE MOVE IS ONE OF THE FIRST BY A PRIVATE MONEYMANGEMENT FIRM UNDER REVISED PROXY RULES THAT GIVE INVESTORS GREATER POWER TO SEEK REFORM AT POORLY PERFORMING COMPANIES THE RULES GIVE MR KINGSLEY A LOWBUDGET WAY TO CHALLENGE CORPORATE MANAGEMENT UNLIKE THE COSTLY BATTLES MR ICAHN OCCASIONALLY WAGED IN THE 1980S THE PROPOSAL CALLS FOR THE BOARD OF CINCINNATIBASED US SHOE TO SPLIT THE COMPANY INTO OPTICAL RETAILING FOOTWEAR AND WOMEN'S APPAREL BUSINESSES EACH WITH SEPARATE LISTINGS ON THE NEW YORK STOCK EXCHANGE THERE'S NO SYNERGY CURRENTLY BETWEEN THE COMPANY'S FLAGSHIP CASUAL CORNER WOMEN'S APPAREL CHAIN ITS LENSCRAFTERS INC EYEWEAR RETAILER AND ITS FOOTWEAR DIVISION SAID MR KINGSLEY IN AN INTERVIEW AT MR KINGSLEY'S BEHEST THE BREAKUP PROPOSAL WAS SUBMITTED TO THE COMPANY BY TWO PRIVATE INVESTORS WHO OWN A COMBINED 2000 SHARES UNDER SECURITIES AND EXCHANGE COMMISSION RULES MR KINGSLEY HASN'T OWNED HIS SHARES LONG ENOUGH TO FILE A PROPOSAL A US SHOE SPOKESMAN SAID THE PROPOSAL WILL APPEAR ON THE COMPANY'S 1994 PROXY STATEMENT AND THE COMPANY IS STILL PREPARING A RESPONSE TO APPEAR WITH IT IF APPROVED THE PROPOSAL WOULDN'T FORCE THE ACTUAL BREAKUP OF THE COMPANY THE PROPOSAL IS ADVISORY WHICH MEANS THAT IT ASKS THE DIRECTORS SIMPLY TO STUDY THE ISSUE US SHOE'S SHARES CLOSED YESTERDAY AT 1650 UP 875 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IN RECENT YEARS US SHOE HAS SEEN ITS PERFORMANCE LAG AS MORE FOCUSED RETAILING COMPANIES HAVE EATEN INTO MARKET SHARE WHILE US SHOE'S COSTCUTTING AND MANAGEMENT SHIFTS HAVE WON FAVOR WITH SOME ANALYSTS OTHERS HAVE CALLED FOR MORE I THINK US SHOE COULD TAKE THE NECESSARY STEPS TO REALIZE GREATER VALUE FOR SHAREHOLDERS BY SPINNING OFF ITS BUSINESSES SAID DAVID DIAMOND MANAGER OF A VALUEORIENTED INSTITUTIONAL PORTFOLIO AT THE BOSTON CO IF MANAGEMENT IS NOT GOING TO TAKE NOTICE OF SHAREHOLDER DISCONTENT THE INSTITUTIONS WILL FORCE THEM TO MARK BOYAR HEAD OF BOYAR ASSET MANAGEMENT SAID HE VIGOROUSLY SUPPORTS THE KINGSLEY PROPOSAL WE LOOK AT US SHOE EXACTLY THE WAY WE LOOKED AT SEARS ROEBUCK & CO A NUMBER OF YEARS AGO HE SAID THERE WAS STRONG RELUCTANCE ON THE PART OF MANAGEMENT TO DO ANYTHING TO ENHANCE SHAREHOLDER VALUE IT TOOK A LOT OF PRODDING BUT THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM WHICH IS GEARING UP FOR A PROXY FIGHT THIS SPRING AT US SHOE OVER ELIMINATION OF STAGGERED BOARD TERMS HASN'T DECIDED HOW TO CAST ITS BALLOT ON MR KINGSLEY'S PROPOSAL MR KINGSLEY IS TAKING ADVANTAGE OF THE SEC'S RELAXATION IN LATE 1992 OF SHAREHOLDERCOMMUNICATION RULES UNDER THE OLD RULES ANY COMMUNICATION INVOLVING MORE THAN 10 SHAREHOLDERS WAS SUBJECT TO REGULATORY OVERSIGHT A PROCESS THAT OFTEN NECESSITATED HIRING A PROFESSIONAL PROXY SOLICITOR NOWADAYS SHAREHOLDERS SIMPLY FILE A COPY OF THEIR COMMUNICATION WITH THE SEC AND FAX OR CALL AS MANY INVESTORS AS DESIRED ROBERT MONKS A LONGTIME INVESTOR ACTIVIST CALLED MR KINGSLEY EXPERIENCED IN THE USE OF OWNERSHIP RIGHTS PRAISING HIS USE OF THE REVISED RULES THIS IS A VERY GOOD USE OF THE SHAREHOLDER FRANCHISE MR MONKS SAID 9403150155 940315 INTERNATIONAL SOME CHINESE FACTORY BOSSES LIVE IT UP ECONOMIC TRANSITION GIVES MANAGERS WIDE AUTONOMY BY JULIA LEUNG AND CRAIG S SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL SHUNDE CHINA GUANGDONG KELON ELECTRICAL HOLDING CO CHINA'S BIGGEST MAKER OF REFRIGERATORS HAS A NEW TROPHY PARKED OUTSIDE ITS HEAD OFFICE HERE A MERCEDES BENZ 600 THE COMPANY SET UP A DECADE AGO BY THE GOVERNMENT OF THIS BOOMING CITY IN GUANGDONG PROVINCE ALREADY WAS THE PROUD OWNER OF FIVE OTHER MERCEDESES INCLUDING A CONVERTIBLE OUR PRESIDENT WILL OF COURSE RIDE THE 600 MODEL SAYS ZHANG CHENGYAO A DEPUTY DIRECTOR OF KELON THE PROBLEM HE ADDS IS THAT THERE AREN'T ENOUGH MERCEDES FOR EACH OF OUR VICE PRESIDENTS SHUNDE CITY OFFICIALS SEE THE PROBLEM DIFFERENTLY THEY THINK MANAGERS OF COMPANIES LIKE KELON STILL GOVERNMENTOWNED ARE TOO BUSY PAMPERING THEMSELVES INSTEAD OF PREPARING THEIR COMPANIES TO WITHSTAND THE INEVITABLE PRESSURES OF FOREIGN COMPETITION MANY STATE FACTORIES HAVE BECOME AN EMPIRE WITH THE GENERAL MANAGER AS THE EMPEROR WHO IS ACCOUNTABLE TO NOBODY SAYS LIU SHIYI A VICE MAYOR OF SHUNDE THIS CHANGE COMES AS CHINA'S ECONOMY PASSES THROUGH A SORT OF TWILIGHT ZONE BETWEEN CENTRAL PLANNING AND CAPITALISM THE COUNTRY'S ECONOMIC REFORMS OVER THE PAST 15 YEARS HAVE FREED THOUSANDS OF STATEOWNED ENTERPRISES FROM RIGID REGULATION AS A RESULT MANAGERS WHO ONCE DUTIFULLY FOLLOWED THE PARTY LINE NOW OFTEN HAVE SO MUCH AUTONOMY THAT THEY CAN TREAT STATE ASSETS LIKE PERSONAL PROPERTY SOME EVEN PASS MANAGERIAL CONTROL ON TO THEIR SONS OR OTHER RELATIVES ALTHOUGH ECONOMISTS GENERALLY ASSUME THAT AUTONOMY WILL PROVE MORE PROFITABLE THAN RIGID CENTRAL PLANNING NO CLEAR SYSTEM OF ACCOUNTABILITY HAS EMERGED CHINA'S CENTRAL GOVERNMENT LATE LAST YEAR ENDORSED THE IDEA OF PRIVATIZATION AND SALES OF STATEOWNED BUSINESSES ARE PROCEEDING AT VARYING RATES THROUGHOUT MUCH OF THE COUNTRY BUT NO CITY HAS EMBRACED PRIVATIZATION WITH MORE ZEAL THAN SHUNDE HOME TO SEVERAL OF THE COUNTRY'S LEADING MAKERS OF HOME APPLIANCES WITHIN THREE YEARS CITY OFFICIALS AIM TO REDUCE THE CITY GOVERNMENT'S STAKES IN LOCAL MANUFACTURERS TO AN AVERAGE OF ABOUT 30 THE HOPE THAT NEW MAJORITY OWNERS WILL WHIP THE COMPANIES INTO SHAPE AND WEAN THEM FROM RELIANCE ON OFFICIAL BAILOUTS BUT MANY OF THE MANAGERS FEARING FOR THEIR PERKS HOPE TO SLOW DOWN OR STOP SHUNDE'S PRIVATIZATION DRIVE AT KELON FOR INSTANCE MANAGERS TAKE A DISTINCTLY PROPRIETARIAL ATTITUDE TOWARD THE ENTERPRISE DESPITE ITS GOVERNMENT OWNERSHIP KELON PRESIDENT PAN NING AND HIS COLLEAGUES BUILT UP THE COMPANY WITH A LOT OF SWEAT AND BLOOD MR ZHANG THE DEPUTY DIRECTOR SAYS TESTILY WE CAN'T JUST HAND IT OVER TO SOME FOREIGNERS WITH BOTH HANDS THUS KELON'S MANAGERS ARE RESISTING PRESSURE FROM THE CITY TO FIND A FOREIGN BUYER FOR A LARGE CHUNK OF THE COMPANY LAST YEAR A SUBSIDIARY OF GENERAL ELECTRIC CO OF FAIRFIELD CONN HELD TALKS WITH KELON ON THE POSSIBLE ACQUISITION OF A STAKE IN THE CHINESE COMPANY'S AIRCONDITIONER PLANT BRUCE ALBERTSON PRESIDENT ASIA OF GE APPLIANCES SAYS NEGOTIATIONS HAVE BEEN SNAGGED BY COMPLICATIONS INVOLVING KELON'S LICENSING AGREEMENTS WITH JAPANESE MANUFACTURERS BUT MR ZHANG SAYS THE TALKS STALLED BECAUSE GE WANTED MAJORITY CONTROL OF THAT PLANT GE'S MR ALBERTSON DENIES THAT THE DEGREE OF OWNERSHIP WAS THE ISSUE ONE REASON SHUNDE OFFICIALS ARE EAGER TO SELL STAKES IN LOCAL COMPANIES IS THAT THEY SEE THE FIRMS AS A DRAIN ON CITY FINANCES THE CITY GUARANTEES THE COMPANIES' DEBTS AND BAILS OUT THE ONES THAT RUN INTO TROUBLE BUT IT GETS LITTLE IN RETURN THEY HARDLY PAY TAXES GRUMBLES VICE MAYOR LIU INSTEAD THEY SQUANDER THE MONEY ON FANCY OFFICE BUILDINGS AND FAST CARS AND WE HAVE NO WAY OF RESTRAINING THEIR LAVISH SPENDING CITY OFFICIALS ALSO WORRY THAT THE COMPANIES HAVE PUT ON TOO MUCH FAT TO SURVIVE THE NEXT ECONOMIC DOWNTURN BY SELLING STAKES IN THESE BUSINESSES MR LIU SAYS THE CITY WILL ACHIEVE TWO GOALS MARRYING ITS DAUGHTERS WHILE THEY ARE STILL YOUNG AND BEAUTIFUL AND FORCING THEM TO BECOME MORE COMPETITIVE THE TROUBLE WITH SUCH SOLUTIONS IS THAT SOME OF CHINA'S STATEOWNED COMPANIES HAVE GROWN SO BIG AND POWERFUL THAT THEY PAY LITTLE HEED TO BUREAUCRATS ONE EXAMPLE IS SHOUGANG CORP A BEIJINGBASED STEELMAKER OVER THE PAST TWO YEARS SHOUGANG HAS BOUGHT A 22STORY OXYGENFIRED FURNACE IN CALIFORNIA A VAST IRON MINE IN PERU AND HALF A DOZEN PUBLICLY LISTED COMPANIES IN HONG KONG IT AIMS TO SPEND ROUGHLY 100 BILLION YUAN 115 BILLION TO BUILD WHAT WOULD BE CHINA'S LARGEST STEEL MILL THE OVERALL GOAL IS TO MORE THAN DOUBLE SHOUGANG'S STEELMAKING CAPACITY WITHIN THE NEXT SIX YEARS MAKING THE COMPANY ONE OF THE WORLD'S BIGGEST STEELMAKERS WE WANT TO BECOME A MAJOR MULTINATIONAL BY THE YEAR 2000 SAYS ZHOU BEIFANG SON OF SHOUGANG'S CHAIRMAN ZHOU GUANWU SHOUGANG'S MANAGERS CAN PURSUE SUCH GRAND VISIONS LARGELY BECAUSE THEY HAVE EXPLOITED THE EXTRAORDINARY FREEDOM AVAILABLE TO SOME CHINESE MANAGERS UNLIKE PRIVATESECTOR STEELMAKERS IN THE US SHOUGANG DOESN'T HAVE TO JUSTIFY ITS STRATEGY OR RESULTS TO THE STOCK MARKET FOR EXAMPLE NO SHAREHOLDERS QUESTIONED THE COMPANY'S PURCHASE OF THE IRON MINE IN 1992 FOR 120 MILLION MORE THAN DOUBLE THAT OFFERED BY THE NEXT HIGHEST BIDDER ON THE OTHER HAND UNLIKE STATEOWNED STEELMAKERS IN EUROPE SHOUGANG NEEDN'T WORRY ABOUT ANNOYING QUESTIONS OR INTERFERENCE FROM POLITICIANS THE COMPANY REPORTS DIRECTLY TO THE COUNTRY'S POWERFUL STATE COUNCIL RATHER THAN DEALING WITH FUNCTIONARIES AT THE MINISTRY OF METALLURGICAL INDUSTRY AS OTHER CHINESE STEELMAKERS DO AS A RESULT WHILE SHOUGANG'S MANAGERS ARE FREE TO RUN THE BUSINESS AS THEY SEE FIT THEY CAN STILL COUNT ON HELP FROM THE GOVERNMENT IN A PINCH AMID CHINA'S CREDIT CRUNCH LAST YEAR FOR EXAMPLE SHOUGANG RECEIVED EMERGENCY LOANS FROM THE PEOPLE'S BANK OF CHINA 9403150154 940315 SEC SAYS CON EDISON MUST LET HOLDERS VOTE ON HYDROQUEBEC TIES NEW YORK THE SECURITIES AND EXCHANGE COMMISSION SAID CONSOLIDATED EDISON CO OF NEW YORK MUST ALLOW SHAREHOLDERS TO VOTE ON A RESOLUTION QUESTIONING THE UTILITY'S RELATIONSHIP WITH HYDROQUEBEC THE LARGE CANADIAN POWER COMPANY CON EDISON HAD ARGUED THE RESOLUTION SHOULDN'T BE INCLUDED IN THE PROXY STATEMENT FOR VOTE BY SHAREHOLDERS AT THIS YEAR'S ANNUAL MEETING BECAUSE THE HYDROQUEBEC AGREEMENT IS A REGULAR PART OF DOING BUSINESS THE RESOLUTION PROPOSED BY THE ADRIAN DOMINICAN SISTERS OF ADRIAN MICH SAYS THE RELIGIOUS GROUP IS CONCERNED ABOUT HYDROQUEBEC'S INVOLVEMENT IN LARGE CONTROVERSIAL PROJECTS WHICH HAVE SPARKED PROTESTS BY ENVIRONMENTAL GROUPS AND INDIAN TRIBES THE RESOLUTION IF ADOPTED AT THE MAY MEETING WOULD REQUIRE CON EDISON TO AMONG OTHER THINGS PREPARE A REPORT ON ITS CONTRACT WITH HYDROQUEBEC AND WHY A CONTRACT WOULD BENEFIT CON EDISON ITS CUSTOMERS AND ITS SHAREHOLDERS CON EDISON SAID IT HADN'T REACHED A DECISION ON WHETHER IT WOULD SUPPORT OR OPPOSE ADOPTION OF THE RESOLUTION WHICH RESOLUTION COMES AT A CRUCIAL TIME FOR THE POWER CONCERNS LAST MONTH THE NEW YORK POWER AUTHORITY CANCELED A PROPOSED 20YEAR AGREEMENT WITH HYDROQUEBEC IN WHICH CON EDISON WOULD HAVE BEEN THE PRIMARY CUSTOMER SINCE THEN HYDROQUEBEC AND CON EDISON NEGOTIATED AND REACHED AN AGREEMENT IN PRINCIPLE THAT WOULD GO INTO EFFECT IN 1999 UNDER TERMS OF THAT PACT CON EDISON WOULD PURCHASE POWER IN THE SUMMER FROM HYDROQUEBEC'S SURPLUS SUPPLY AND HYDROQUEBEC WOULD PURCHASE POWER FROM CON EDISON IN THE WINTER HYDROQUEBEC SAID ITS HYDROELECTRIC PROJECTS ARE UNDERGOING AN EXHAUSTIVE ENVIRONMENTAL REVIEW IT ALSO POINTED OUT ITS POWER CONTRACTS AREN'T RELATED TO SPECIFIC PROJECTS 9403150153 940315 WHO'S NEWS STRIDE RITE CORP STRIDE RITE CORP CAMBRIDGE MASS JERRY SILVERMAN WAS NAMED PRESIDENT OF THE STRIDE RITE INTERNATIONAL CORP UNIT OF THE FOOTWEAR MAKER EFFECTIVE APRIL 4 MR SILVERMAN 37 YEARS OLD WAS PREVIOUSLY NATIONAL SALES MANAGER FOR MEN'S DOCKERS IN THE DOCKERS DIVISION OF LEVI STRAUSS & CO HE SUCCEEDS ALAIN RONC 46 WHO RESIGNED IN JANUARY TO PURSUE OTHER INTERESTS STRIDE RITE SAID 9403150152 940315 FIRST CITY NARROWS RANGE OF SETTLEMENT EXPECTED FROM FDIC HOUSTON FIRST CITY BANCORP OF TEXAS INC NARROWED THE RANGE OF CASH AND ASSETS IT EXPECTS TO RECEIVE UNDER A SETTLEMENT WITH THE FEDERAL DEPOSIT INSURANCE CORP AND SAID BY LATE SUMMER IT EXPECTS TO BE LOOKING FOR FINANCIALSERVICES ACQUISITIONS IN TEXAS IN A DISCLOSURE FILED WITH THE US BANKRUPTCY COURT IN DALLAS THE FORMER BANK HOLDING COMPANY SAID THE INITIAL DISTRIBUTION FROM THE FDIC WILL BE ABOUT 188 MILLION INCLUDING 1235 MILLION IN CASH DOWN FROM THE 200 MILLION FIRST CITY FIRST DISCLOSED BECAUSE THE FDIC IS SELLING ASSETS FASTER THAN EXPECTED THE CASH PORTION OF THE INITIAL PAYMENT IS BIGGER THAN ANNOUNCED BUT FIRST CITY ALSO LOWERED ITS VALUATION OF THE ASSETS IT IS GETTING IN JANUARY THE FDIC AGREED TO SETTLE FIRST CITY'S LAWSUIT OVER THE SEIZURE OF THE COMPANY'S 20 BANKS WITH THE INITIAL DISTRIBUTION FOLLOWED BY AN ADDITIONAL AMOUNT DEPENDENT ON PROCEEDS FROM SALE OF ASSETS FIRST CITY ESTIMATES THOSE ADDITIONAL DISTRIBUTIONS WHICH WON'T BE REFLECTED ON THE COMPANY'S BALANCE SHEET COMING OUT OF BANKRUPTCY COURT BECAUSE OF THEIR CONTINGENT NATURE IN A RANGE OF 100 MILLION TO 140 MILLION THAT NARROWS THE ESTIMATE OF THE TOTAL FDIC SETTLEMENT TO BETWEEN 288 MILLION AND 328 MILLION THE COMPANY HAD ESTIMATED THE SETTLEMENT AT BETWEEN 275 MILLION AND 375 MILLION FIRST CITY ALSO REVISED THE COMPANY'S ESTIMATE OF ALLOWED CREDITOR CLAIMS TO A RANGE OF 65 MILLION TO 80 MILLION DOWN FROM 80 MILLION TO 120 MILLION AS A RESULT FIRST CITY ESTIMATES ITS OPENING EQUITY COMING OUT OF BANKRUPTCYLAW PROCEEDINGS IN LATE SUMMER SHOULD BE APPROXIMATELY 140 MILLION FIRST CITY PRESIDENT ROBERT BROWN SAID THE COMPANY IS PAYING ATTENTION RIGHT NOW TO POTENTIAL ACQUISITION TARGETS BUT WON'T COMMIT TO ANYTHING UNTIL IT EMERGES FROM BANKRUPTCYCOURT PROTECTION 9403150151 940315 MARKETING & MEDIA ADVERTISING MAJOR COMPANIES ARE APPROACHED ON SPONSORING MAJOR GAY EVENT BY KEVIN GOLDMAN IN THE EARLY HOURS OF JUNE 29 1969 A RAID ON A HOMOSEXUAL BAR IN NEW YORK'S GREENWICH VILLAGE RESULTED IN A FULLBLOWN RIOT INVOLVING 400 MEN SOME HURLING BOTTLES GARBAGE AND EVEN A PARKING METER AT POLICE THE RAMPAGE NEAR THE STONEWALL INN IS CONSIDERED THE SPARK FOR THE GAY AND LESBIAN LIBERATION MOVEMENT TWENTYFIVE YEARS LATER MAJOR COMPANIES ARE IN DISCUSSIONS WITH A NONPROFIT ORGANIZATION STONEWALL 25 ABOUT WHETHER TO PARTICIPATE IN A PLANNED COMMEMORATION IN MANHATTAN ON JUNE 26 THERE HAVE BEEN ONLY A FEW TAKERS SO FAR INCLUDING CAMPARI AN APERITIF PRODUCED BY ITALY'S DAVIDE CAMPARIMILANO SPA AND PRIVATE LABEL WATER A SAN MATEO CALIF COMPANY THAT PRODUCES SPRING WATER AND PUTS DIFFERENT COMPANY LOGOS ON THE BOTTLES BUT STONEWALL 25 SAYS IT IS TALKING WITH SUCH MAJOR COMPANIES AS SONY AMERICAN EXPRESS GAP PHILIP MORRIS'S MILLER BREWING UNIT AND HIRAM WALKER & SONS ABOUT POTENTIAL SPONSORSHIPS THE TIMES THEY CERTAINLY ARE A'CHANGING A HEADLINE THAT APPEARED IN THE NEW YORK DAILY NEWS SHORTLY AFTER THE STONEWALL RIOT HOMO NEST RAIDED QUEEN BEES ARE STINGING MAD WOULD BE INCONCEIVABLE TODAY FURTHER MARKETING EXPERTS SAY THERE IS LITTLE RISK FOR COMPANIES TO ALIGN THEMSELVES WITH AN EVENT THAT CATERS TO WHAT USED TO BE CALLED AN ALTERNATIVE LIFESTYLE PLANNERS OF STONEWALL 25 CONTEND THE VIOLENT NATURE OF THE EVENT BEING CELEBRATED ISN'T A PROBLEM THE BOSTON TEA PARTY WAS A RIOT SAYS SUSAN JESTER EXECUTIVE DIRECTOR OF STONEWALL 25 SOME COMPANIES WILL STILL BE SKITTISH BUT WE'RE FINDING FEW THAT TURN US DOWN IMMEDIATELY SHE SAYS FOR EXAMPLE THAT SONY IS DONATING HUGE TELEVISION MONITORS MEASURING 18 FEET BY 20 FEET TO PLACE IN CENTRAL PARK DURING THE JUNE RALLY SONY DIDN'T RETURN CALLS SEEKING COMMENT STONEWALL 25 SAYS SPONSORSHIP WOULD ENTAIL DONATIONS RANGING FROM BELOW 10000 TO 200000 AND WOULD ALLOW MARKETERS TO DISPLAY THEIR LOGOS PROMINENTLY AT STONEWALL 25 EVENTS INCLUDING THE PLANNED RALLY IN CENTRAL PARK AND FESTIVITIES IN GREENWICH VILLAGE THE COMPANIES THAT CHOOSE TO SPONSOR STONEWALL 25 GAIN SO MUCH BY DEMONSTRATING THEY ARE KEEPING UP WITH THE TIMES SAYS JACKIE SILVER A MARKET RESEARCH AND ADVERTISING CONSULTANT OF COURSE THERE IS ALWAYS A RISK THAT SOME CONSERVATIVE MINORITY WILL REACT NEGATIVELY BUT THAT IS SHRINKING NATIONWIDE AND CERTAINLY IN NEW YORK INCREASINGLY MARKETERS PARTICULARLY LIQUOR AND ENTERTAINMENT COMPANIES HAVE BEEN RECOGNIZING THE GAY COMMUNITY AND ITS SPENDING POWER A SPOKESWOMAN AT HIRAM WALKER & SONS A SUBSIDIARY OF BRITISH BEVERAGE CONCERN ALLIEDLYONS SAYS STONEWALL 25 IS BEING CONSIDERED BECAUSE IT FITS WITHIN OUR FRAMEWORK OF IDENTIFYING CULTURAL ACTIVITIES TO REACH A LARGE NUMBER OF CONSUMERS AT A SINGLE EVENT CAMPARI PLANS TO BE A MAJOR PRESENCE AT THE STONEWALL COMMEMORATION IT HAS CONCOCTED TWO NEW DRINKS THE STONE WALL AND THE MORE POTENT STONE WALL RIOT FOR THE EVENT THE RECIPES WILL BE ADVERTISED IN MAGAZINES CATERING TO HOMOSEXUALS INCLUDING OUT IN ADDITION CAMPARI WILL HAVE ITS LOGO SPLASHED ACROSS BANNERS AND COCKTAIL NAPKINS IN SALOONS AND RESTAURANTS WE WANT TO INCREASE USAGE AMONG CERTAIN SEGMENTS OF THE POPULATION SAYS JESS DI PASQUALE CAMPARI'S DIRECTOR OF MARKETING THERE IS A HIGH POTENTIAL IN THE GAY COMMUNITY BECAUSE OF CAMPARI'S TASTE AND COLOR AND IT IS CONSIDERED A SOPHISTICATED DRINK THAT THEY CAN CONNECT WITH MR DI PASQUALE SAYS IT ISN'T CAMPARI'S INTENTION TO MAKE A POLITICAL STATEMENT WE AREN'T ALIGNING OURSELVES WITH RIOTING INSTEAD WE'RE RECOGNIZING LOYAL CUSTOMERS MS JESTER SAYS NESTLE BEVERAGE WHOSE OVERALL PARENT IS SWITZERLAND'S NESTLE SA WAS PLANNING TO ADVERTISE IN THE GAY BIMONTHLY MAGAZINE 10 PERCENT AN OFFICIAL STONEWALL 25 SPONSOR THROUGH THE END OF THE YEAR THE ADS SHE SAYS WOULD BE PROFILES OF GAY AND LESBIAN INDIVIDUALS WHO MADE A CONTRIBUTION TO SOCIETY DISCUSSIONS WERE ALSO UNDER WAY FOR NESTLE BEVERAGE WHICH MAKES COFFEES AND HOT COCOA MIX AMONG OTHER PRODUCTS TO BECOME A SPONSOR OF STONEWALL 25 BUT MUCH TO STONEWALL 25'S SURPRISE A NESTLE SPOKESWOMAN SAYS THE COMPANY ISN'T GOING TO ADVERTISE IN THE MAGAZINE AND WON'T BE A SPONSOR OF THE NEW YORK EVENTS THE SPOKESWOMAN ACKNOWLEDGED DISCUSSIONS HAD TAKEN PLACE BETWEEN NESTLE AND STONEWALL 25 BUT DECLINED TO PROVIDE DETAILS INSTEAD OF PARTICIPATING IN THE JUNE ANNIVERSARY NESTLE SAYS IT WILL HOLD A LUNCHEON HONORING GAY AND LESBIAN INDIVIDUALS THERE WAS NO SUCH HESITATION ON THE PART OF PRIVATE LABEL WATER WHICH PLACES LABELS FOR SUCH COMPANIES AS GAP AND BLOCKBUSTER ENTERTAINMENT ON BOTTLES ALREADY BOTTLES WITH A STONEWALL 25 LOGO INCLUDING AN UPSIDEDOWN LAVENDER TRIANGLE WITH THE GLOBE IN ITS CENTER ARE APPEARING ON STORE SHELVES I'M FROM SAN FRANCISCO AND I'M A STRAIGHT AFRICANAMERICAN MALE WHO BELIEVES IN INCLUSION NOT EXCLUSION SAYS LUNIS H WILLIAMS JR CHAIRMAN OF PRIVATE LABEL WATER TO BE SURE STONEWALL 25 SPONSORS AREN'T GOING TO FLOOD THE SOCALLED MAINSTREAM MEDIA WITH ADS TRUMPETING THEIR INVOLVEMENT WITH THE SUMMER EVENT BUT NEWS COVERAGE OF THE EVENT IS EXPECTED AND ANY COMPANY WHOSE LOGO IS CONTAINED ON BANNERS NEAR THE STAGE WILL RECEIVE NATIONAL EXPOSURE ROBERT DILENSCHNEIDER AN EXPERT IN CRISIS MANAGEMENT SAYS IN TODAY'S POLITICALLY CORRECT ENVIRONMENT THERE IS NOTHING THE COMPANIES HAVE TO FEAR HE ADDS THAT IT IS HIGHLY UNLIKELY THAT A CONSERVATIVE GROUP WILL COMPILE A LIST OF STONEWALL 25 SPONSORS AND CALL FOR A BOYCOTT OF THOSE PRODUCTS SAYS MS JESTER STONEWALL 25 ABOVE ANYTHING ELSE IS A HUMAN RIGHTS MARCH PHILIP GUARASCIO GENERAL MOTORS' TOP EXECUTIVE OVERSEEING ADVERTISING AND MARKETING ACTIVITIES SAID CONTRARY TO PUBLISHED REPORTS IN THE MEDIA I HAVE NO PLANS TO LEAVE MY POSITION AT GENERAL MOTORS MR GUARASCIO 52 YEARS OLD ISSUED THE STATEMENT IN RESPONSE TO REPORTS IN ADVERTISING TRADE PUBLICATIONS SAYING THAT HE WAS CONSIDERING AN OFFER TO RUN TED TURNER'S 1 BILLION CABLETELEVISION SALES ORGANIZATION IT'S FLATTERING TO BE CONSIDERED FOR KEY POSITIONS WITH OTHER HIGHLY SUCCESSFUL FIRMS HOWEVER MY COMMITMENT REMAINS WITH GENERAL MOTORS MR GUARASCIO SAID A SPOKESMAN AT TURNER BROADCASTING SYSTEM ALSO SAID THAT MR GUARASCIO HADN'T ACCEPTED A POSITION THERE AS GENERAL MANAGER OF GM'S ADVERTISING AND MARKETING OPERATIONS MR GUARASCIO OVERSEES THE AUTO MAKER'S 13 BILLION MEDIA BUDGET AND IS CONSIDERED BY MANY TO BE A POWERFUL MEDIA BUYER BUT MR GUARASCIO DOESN'T HAVE A CORPORATE VICE PRESIDENT TITLE AND A PORTION OF HIS COMPENSATION PACKAGE IS TIED TO BONUSES WHICH GM HASN'T PAID IN RECENT YEARS GENERAL MILLS SAID IT REACHED AN OUTOFCOURT SETTLEMENT OF A LAWSUIT AGAINST GAG FOODS CO A WOODLAND PARK COLO NOVELTYPRODUCTS MAKER AND CALLAGHAN PROMOTIONS OF BIRMINGHAM MICH A NOVELTY DISTRIBUTOR THE TWO COMPANIES MARKETED PARODIES OF THE MINNEAPOLIS FOOD GIANT'S PRODUCTS LAST YEAR GENERAL MILLS SUED THE TWO COMPANIES ALLEGING THAT GAG FOODS' ROADKILL HELPER AND ITS LINE EXTENSION SPOTTED OWL HELPER LOOKED TOO MUCH LIKE HAMBURGER HELPER MEAL STRETCHERS AND WITH AN UNPLEASANT TWIST UNDER THE SETTLEMENT THE TWO COMPANIES WILL END PRODUCTION OF THE TWO PRODUCTS AFTER SELLING CURRENT INVENTORY KEVIN JOHNSON THE OWNER OF GAG FOODS WHO INVENTED THE PRODUCTS SAID ALTHOUGH HE'S GLAD THE CASE IS SETTLED HE'S A BIT DISAPPOINTED THAT HE CAN'T EVER AGAIN PARODY A GENERAL MILLS PRODUCT STILL MR JOHNSON WILL CONTINUE TO SELL OTHER ROADKILL PRODUCTS SUCH AS THE ROADKILL CAFE TSHIRT INCLUDING A MENU OF APPROPRIATE ITEMS AND ROADKILL PIZZA WITH DISFIGURED TOPPINGS 9403150150 940315 INTERNATIONAL JAPAN'S NAGANO SITE OF 1998 GAMES FACES PROBLEMS OF OLYMPIC PROPORTIONS BY CRAIG FORMAN STAFF REPORTER OF THE WALL STREET JOURNAL NAGANO JAPAN NAGANO IS GETTING READY AT THE TRAIN STATION A BIG CLOCK TICKS DOWN TOWARD THE OPENING OF THE XVIII OLYMPIC WINTER GAMES THE OFFICIAL MASCOTS FOUR BABY OWLS CALLED THE SNOWLETS BEAM FROM PINS AND POSTERS AROUND TOWN AMID THE DIN OF CEMENT MIXERS THE HOCKEY ARENA IS GOING UP AND THE SKI JUMP WAS FINISHED LONG AGO INDEED BY SOME ESTIMATES A FIFTH OF THE FACILITIES FOR THE NEXT WINTER OLYMPICS ALREADY ARE FINISHED NOW NAGANO JUST HAS TO WAIT ANOTHER FOUR YEARS WE ARE ON SCHEDULE SAYS KAZUTAMI YOSHIDA DEPUTY DIRECTOR GENERAL OF THE NAGANO OLYMPIC ORGANIZING COMMITTEE OF COURSE THIS IS JAPAN A COUNTRY THAT KNOWS HOW TO GET READY FOR BIG PROJECTS AND INDEED NAGANO HAS BEEN WORKING ON THE GAMES SINCE JUNE 1991 WHEN IT WON THE RIGHT TO HOST THE FINAL OLYMPIAD OF THIS CENTURY BUT NAGANO'S PREPARATIONS HAVE SWUNG INTO HIGH GEAR SINCE THE CURTAIN WENT DOWN ON LAST MONTH'S LILLEHAMMER GAMES AND THE FAMILIAR FIVERINGED FLAG ARRIVED HERE FROM NORWAY SO WHEN MR YOSHIDA SAYS EVERYTHING IS ON SCHEDULE HE MEANS HE EXPECTS FACILITIES TO BE READY A YEAR EARLY IN FEBRUARY 1997 THE SCHEDULE ALLOWS TIME FOR DRY RUNS AND TESTING HE EXPLAINS HOWEVER EVERYTHING ISN'T GOING SMOOTHLY A VARIETY OF PROBLEMS COST OVERRUNS THE SHARP FALL IN THE DOLLAR AGAINST THE YEN GROWING ENVIRONMENTAL CONCERNS AND JAPAN'S SPREADING CONSTRUCTION BIDRIGGING SCANDAL ARE CAUSING MAJOR HEADACHES NONE YET ENDANGERS THE NAGANO GAMES BUT SOME OLYMPICRELATED DEVELOPMENTS ESPECIALLY THE CONSTRUCTION OF A HIGHSPEED RAIL LINE TO TOKYO AND SEVERAL NEW EXPRESSWAYS ARE CONTROVERSIAL AND THREATEN TO TRANSFORM THE RURAL LANDSCAPE OF THIS ALPINE REGION IN THE HEART OF JAPAN'S MAIN ISLAND WHILE NAGANO ITSELF IS A DRAB INDUSTRIAL CITY BEAUTY ABOUNDS IN THE SURROUNDING MOUNTAINS THE AREA SEEMS LIKELY TO EMERGE FROM THE OLYMPICS A VERY DIFFERENT AND LESS ALLURING PLACE THIS IS THE CONSTRUCTION WORKERS' OLYMPICS LAMENTS KAORU IWATA A CITY COUNCILMAN IN THE RESORT VILLAGE OF KARUIZAWA WHICH WILL HOST THE CURLING EVENTS AT THE 1998 GAMES IT'S GOING TO MAKE THE QUALITY OF LIFE AROUND HERE WORSE IN SOME RESPECTS THE NAGANO OLYMPICS MARK A STEP BACKWARD FROM THE ENVIRONMENTALLY FRIENDLY LILLEHAMMER GAMES UNLIKE LILLEHAMMER THE NAGANO OLYMPICS WILL ONCE AGAIN BE SPREAD AMONG HALF A DOZEN VENUES POSING A LOGISTICAL NIGHTMARE AND PROMPTING AN AVALANCHE OF CONCRETE SEVERAL BILLION DOLLARS WILL BE SPENT ON ROADS RAILWAYS AND COMMUNICATIONS TO CRISSCROSS THESE RUSTIC HILLSIDES THE BIGGEST SINGLE PROJECT IS THE SOCALLED SHINKANSEN RAIL PROJECT WHICH WILL HALVE THE TRAVEL TIME FROM TOKYO TO 90 MINUTES WHILE THE NEW RAIL LINK WILL MAKE THE REGION MORE ACCESSIBLE FOR TOURISTS MANY RESIDENTS SAY THE PROJECT'S DAMAGING ENVIRONMENTAL CONSEQUENCES WILL OUTWEIGH ANY BENEFITS UNTIL NOW FOR INSTANCE KARUIZAWA HAS MANAGED TO RETAIN MUCH OF ITS SLEEPY CHARM AS A TURN OF THE CENTURY SPA POPULARIZED BY BRITISH MISSIONARIES A FEW MILES OUTSIDE OF TOWN HOWEVER THE RURAL TRANQUILITY IS ALREADY BEING DISTURBED BY RAILWAY CONSTRUCTION NOISE UNDER CURRENT PLANS THE NEW HIGHSPEED LINE WILL DIVIDE KARUIZAWA WHILE DESTROYING A SEVERALMILE CHUNK OF CHESTNUT AND MAPLE FOREST WITH THE SNOW CRUNCHING BELOW HIS FEET MR IWATA TAKES A WALK IN KARUIZAWA'S WOODS FROM HUNDREDS OF TREES SMALL WOODEN SIGNS DANGLE LIKE CHRISTMAS ORNAMENTS EACH ONE MARKED WITH A PERSON'S NAME THE PEOPLE 500 IN ALL HAVE EACH PAID THE EQUIVALENT OF 15 TO BUY A TREE ON THIS LAND THE IDEA IS TO MAKE IT HARDER FOR JAPANESE AUTHORITIES TO EXPROPRIATE THIS PROPERTY WHICH LIES DIRECTLY IN THE PATH OF THE PROPOSED TRAIN LINE WE'LL CHAIN OURSELVES TO THE TREES IF WE HAVE TO SAYS MR IWATA HE SAYS HE BELIEVES THAT ONCE THE EXPRESS LINE IS BUILT THE RAILROAD WILL ACTUALLY REDUCE SERVICE FOR LOCALS AND MANY TOURISTS WILL GO ELSEWHERE BECAUSE OF THE NOISE IF THE TRAIN MUST PASS HE ADVOCATES TUNNELING UNDER THE FOREST WHICH HE CONCEDES WOULD ADD TO THE PROJECT'S COSTS BUT WITH THE NEW LINE ALREADY ESTIMATED TO COST ABOUT 40 MILLION FOR EVERY MINUTE THAT THE ROUTE SHAVES OFF THE THE TRIP TO TOKYO WHO'S COUNTING MR YOSHIDA IS BACK AT NAGANO OLYMPIC HEADQUARTERS HE IS UNMOVED BY ENVIRONMENTAL LAMENTS WE ARE NOT INTENDING TO DAMAGE THE ENVIRONMENT HE SAYS BUT WHEN WE THINK OF THE BENEFITS FOR MANY PEOPLE THE LINE IS A PLUS HE ADDS AND INDEED AT NAGANO'S CITY HALL LOCALGOVERNMENT OFFICIALS SAY OLYMPICRELATED INVESTMENT WILL BRING HUGE BENEFITS ALREADY STATISTICS SHOW EMPLOYMENT IN NAGANO IS MORE ROBUST THAN IN MUCH OF ECONOMICALLY GLOOMY JAPAN LOOKING AT FIGURES ON THE ECONOMIC IMPACT OF PREVIOUS OLYMPICS TOMIO MIYASHITA VICE DIRECTOR OF THE NAGANO CITY'S OLYMPICS DEPARTMENT SAYS THE GAMES WILL MEAN A MULTIBILLIONDOLLAR BOOST WE WILL BUILD FACILITIES WE COULDN'T DO IN 10 OR 20 YEARS HE SAYS LOCAL BUSINESSMEN CAN'T WAIT THEY SEE THE GAMES TRANFORMING NAGANO INTO A WINTER PLAYGROUND FOR HUNDREDS OF MILLIONS OF ASIAN TOURISTS WE CAN BECOME A MECCA FOR WINTER SPORTS IN ASIA SAYS NAGATO MITSUI DEPUTY GENERAL MANAGER OF NAGANO'S ROYAL HOTEL BUT EVEN IF MACROECONOMIC BENEFITS EVENTUALLY PROVE HUGE THE ORGANIZING COMMITTEE'S MR YOSHIDA CONCEDES THAT CURRENT ECONOMIC REALITY IS BLOWING A BIG HOLE IN THE GAMES' BUDGET FORECAST REVENUES WILL BE LOWER THAN EXPECTED AND COSTS HIGHER THE DOLLAR HAS FALLEN MORE THAN 20 AGAINST THE YEN SINCE NAGANO SET ITS OPERATING BUDGET FOR THE GAMES AND IF THE 16 COST OVERRUN ON THE SKI JUMP IS ANY GUIDE THERE MAY BE A SIGNIFICANT DEFICIT ON THE 76 BILLION YEN 7234 MILLION OPERATING PLAN MR YOSHIDA IS LOOKING FOR WAYS TO CUT COSTS TO AVOID TURNING WHAT ALREADY LOOKS LIKE THE MOST EXPENSIVE WINTER GAMES INTO A FINANCIAL FIASCO ALTHOUGH CBS INC RECENTLY AGREED TO PAY A RECORD 375 MILLION FOR US TELEVISION RIGHTS HE SAYS NAGANO NEEDS BIG SPONSORSHIP AND MARKETING DEALS TO COMPENSATE FOR THE YEN'S SURGING VALUE MEANWHILE NAGANO IS TRYING TO HOLD THE LINE ON EXPENSES AND WANTS TO MAKE FACILITIES SIMPLER AND CHEAPER MR YOSHIDA SAYS THE ORGANIZERS ARE CONSIDERING ABANDONING PLANS TO BUILD A BROADCASTING CENTER THEY MAY PUT IT IN A DISUSED TEXTILE MILL INSTEAD THERE ARE SIGNS AS WELL THAT NAGANO MAY BACK OFF FROM ITS UNUSUAL PLEDGE TO HELP ATHLETES PAY FOR SOME TRAVEL EXPENSES THERE IS ONE OTHER OLYMPICSIZED WORRY A LITTLE MORE DIFFICULT TO MANAGE HOW TO TOP THE HOSPITALITY AND ENTHUSIASM OF THE NORWEGIAN HOSTS AND FANS WHO HELPED MAKE THE LILLEHAMMER GAMES SUCH A SUCCESS OVER AT CITY HALL MR MIYASHITA SAYS PLANS ARE ALREADY UNDER WAY TO BOOST FOREIGNLANGUAGE INSTRUCTION AND TO ATTRACT ENGLISHSPEAKING VOLUNTEERS FROM ACROSS JAPAN BUT HE CONCEDES THAT IN CONTRAST TO LILLEHAMMER PEOPLE IN NAGANO HAVE LESS EXPERIENCE WITH FOREIGNERS AND IT WILL BE A CHALLENGE TO KINDLE AS WARM A WELCOME WE ARE GOING TO HAVE TO MAKE A BIG EFFORT TO DO THAT HERE HE SAYS 9403150149 940315 CAE WINS CHINA AIRLINES JOB TORONTO CAE INC SAID ITS CAE ELECTRONICS LTD UNIT WAS AWARDED A CONTRACT BY CHINA SOUTHERN AIRLINES TO DESIGN AND MANUFACTURE A BOEING 777 FULLFLIGHT SIMULATOR AND A CAE MAXVUE VISUAL SYSTEM THE VALUE OF THE CONTRACT WASN'T DISCLOSED CAE SAID DELIVERY WILL BE IN EARLY 1996 9403150148 940315 CREDIT RATINGS S&P PLACES THE DEBT OF 4 JAPANESE BANKS ON CREDITWATCH LIST NEW YORK STANDARD & POOR'S CORP SAID IT PLACED 42 BILLION OF DEBT OF FOUR JAPANESE BANKING COMPANIES ON ITS CREDITWATCH LIST FOR A POSSIBLE DOWNGRADE UNDER REVIEW ARE SHORTTERM AND LONGTERM RATINGS OF BANK OF TOKYO LTD MITSUBISHI BANK LTD SANWA BANK LTD AND SUMITOMO BANK LTD ALL FOUR ARE RATED DOUBLEA FOR SHORTTERM DEBT AND SINGLEA1PLUS FOR LONGTERM DEBT THE REVIEW ALSO INCLUDES DEBT OF UNION BANK SAN FRANCISCO MAJORITYOWNED BY BANK OF TOKYO BANK OF CALIFORNIA WHICH IS A SUBSIDIARY OF MITSUBISHI BANK AND SANWA BUSINESS CREDIT WHICH IS A SUBSIDIARY OF SANWA BANK S&P SAID THE REVIEW REFLECTS ITS BELIEF THAT BOTH THE MAGNITUDE AND FUTURE EXPECTED WRITEOFF AMOUNTS OF PROBLEM LOANS HAVE INCREASED AS THE ECONOMIC RECESSION CONTINUES IN JAPAN S&P SAID IT WILL EVALUATE EACH OF THE BANKS' PROBLEM LOAN SITUATIONS IN LIGHT OF THEIR EARNINGS CAPACITY LEVEL OF HIDDEN RESERVES AND POTENTIAL RESTRUCTURING EFFORTS WITHIN THE NEXT FEW WEEKS 9403150147 940315 FINANCING BUSINESS PC SERVICE SOURCE INC PC SERVICE SOURCE INC DALLAS REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 11 MILLION COMMON SHARES INCLUDING 100000 SHARES TO BE SOLD BY A SHAREHOLDER THE COMPANY A DISTRIBUTOR OF COMPUTER PARTS SAID IT EXPECTS THE SHARES TO BE OFFERED AT 7 TO 9 A SHARE WILLIAM K WOODRUFF & CO IS THE MANAGING UNDERWRITER 9403150146 940315 INTERNATIONAL PHILIPS ELECTRONICS UNIT SEOUL SOUTH KOREA PHILIPS ELECTRONICS KOREA LTD A VENTURE OF PHILIPS ELECTRONICS NV SAID THE DUTCH COMPANY SOLD A 100 STAKE IN THE COMPANY TO SOUTH KOREAN INVESTORS AS PART OF EFFORTS TO STREAMLINE GLOBAL OPERATIONS PHILIPS ELECTRONICS KOREA WHICH PRODUCED RESISTORS AND CAPACITORS FOR SUPPLY TO ITS PARENT HAS HAD LOSSES SINCE ITS INCEPTION IN 1975 OFFICIALS SAID PHILIPS HOWEVER WILL MAINTAIN HERE ITS INCORPORATED COMPANY PHILIPS INDUSTRIES KOREA LTD WHICH IMPORTS PHILIPS PRODUCTS INTO KOREA 9403150145 940315 WHO'S NEWS CYTOTHERAPEUTICS INC CYTOTHERAPEUTICS INC PROVIDENCE RI THOMAS G WIGGANS 44 YEARS OLD RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER MR WIGGANS HAD SERVED AS PRESIDENT SINCE LAST MARCH AND AS CHIEF OPERATING OFFICER SINCE FEBRUARY 1992 HE WILL REMAIN A DIRECTOR THE BIOTECHNOLOGY COMPANY SAID CYTOTHERAPEUTICS SAID IT HAS BEGUN A SEARCH FOR A SUCCESSOR MR WIGGANS SAID HE IS EAGER TO ASSUME A CHIEFEXECUTIVE ROLE AND WILL PURSUE DISCUSSIONS WITH SEVERAL COMPANIES CURRENTLY UNDER WAY 9403150144 940315 INTERNATIONAL FRENCH FIRM GETS CONTRACT PARIS FRANCE'S THOMSONCSF SA A STATE ELECTRONICS AND DEFENSE CONCERN SAID IT WON A CONTRACT TO MODERNIZE THE AIRCONTROL SYSTEM OF UZBEKISTAN TO BE INSTALLED AT ITS CAPITAL TASHKENT THE FIRST PHASE OF THE CONTRACT WORTH 34 MILLION IS TO BE COMPLETED IN LESS THAN TWO YEARS 9403150143 940315 TWO GM FACILITIES ARE STRUCK BY UAW OVER OUTSOURCING' BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DAYTON OHIO WORKERS AT TWO KEY GENERAL MOTORS CORP BRAKE PLANTS WENT ON STRIKE A MOVE THAT COULD SHUT DOWN MOST OF GM'S ASSEMBLY PLANTS WITHIN A FEW DAYS IF THE STRIKE ISN'T SETTLED HOWEVER ANALYSTS PREDICTED THE STRIKE WILL BE SETTLED WITHIN TWO TO THREE DAYS BEFORE IT COULD CRIPPLE GM'S SUPPLY AND ASSEMBLY OPERATIONS NEGOTIATIONS ARE TO RESUME THIS MORNING BOTH SIDES ARE ENGAGING IN BRINKMANSHIP THE QUESTION IS WHERE'S THE BRINK SAID DAVID BRADLEY AN ANALYST WITH JP MORGAN SECURITIES INC WHO PREDICTED A QUICK SETTLEMENT GM'S STOCK FELL MODERATELY CLOSING AT 6275 A SHARE DOWN 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING THE STRIKE DIDN'T PROVOKE A STRONG NEGATIVE REACTION ON WALL STREET IN PART BECAUSE SOME INVESTORS SAW THE DISPUTE AS PROOF THAT GM IS CONTINUING TO PRESSURE ITS SUPPLY DIVISIONS TO BECOME MORE EFFICIENT THE DISPUTE IS ONE OF SEVERAL LABOR CONFLICTS AT THE PLANT LEVEL OVER GM'S EFFICIENCY DRIVES MOST OF THE LOCAL FIGHTS HAVE BEEN RESOLVED WITHOUT STRIKES BUT EARLIER THIS YEAR WORKERS AT A SHREVEPORT LA PICKUPASSEMBLY PLANT WENT ON STRIKE FOR FOUR DAYS IN DAYTON ABOUT 3000 WORKERS REPRESENTED BY UNITED AUTO WORKERS LOCAL 696 WALKED OUT OF THE TWO BRAKE PLANTS YESTERDAY MORNING UNION OFFICIALS SAID AFTER A 26HOUR NEGOTIATING SESSION FAILED TO RESOLVE A LOCAL DISPUTE OVER OUTSOURCINGFARMING OUT PLANT WORK TO OUTSIDE SUPPLIERS THE UAW SAID 500 OF THE 3000 DAYTON WORKERS COULD LOSE THEIR JOBS IF PARTS THEY PRODUCE ARE PURCHASED FROM SUPPLIERS GM WHICH IS SADDLED WITH LABOR COSTS THAT ARE TWICE THOSE OF ITS SUPPLIERS ARGUES THAT IT NEEDS TO PURCHASE MORE PARTS FROM OUTSIDE VENDORS IN ORDER TO REDUCE COSTS BUT DECLINED TO DISCUSS THE SPECIFICS OF THE DAYTON DISPUTE THE TWO PLANTS ARE PART OF GM'S DELCO CHASSIS DIVISION THEY PRODUCE ANTILOCK BRAKES FOR MOST OF GM'S SMALL CARS THE COMPANY SAID AND ALSO ENGINE BEARINGS FOR SEVERAL GM POWERTRAINS AS WELL AS MASTER CYLINDERS AND POWERBRAKE BOOSTERS FOR MOST GM CARS AND TRUCKS CHRYSLER CORP ALSO BUYS SOME BRAKE COMPONENTS FROM THE DAYTON PLANTS FOR ITS DODGE RAM PICKUP 9403150142 940315 FORMER HONDA EXECUTIVES PLEAD GUILTY TO CHARGES TIED TO BRIBES FROM DEALERS BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CONCORD NH AFTER A YEARLONG INVESTIGATION EIGHT FORMER HONDA MOTOR CO EXECUTIVES HAVE PLEADED GUILTY TO BRIBERYRELATED CHARGES FEDERAL PROSECUTORS SAID THE EIGHT MEN ADMITTED THAT THEY ACCEPTED BRIBES FROM DEALERS IN EXCHANGE FOR GENEROUS SUPPLIES OF HOTSELLING CARS AND COVETED DEALERSHIPS HONDA WHICH ISN'T BEING INVESTIGATED SAID IT IS OUTRAGED AND SADDENED BY THE CRIMINAL ACTIVITIES FEDERAL PROSECUTORS IN NEW HAMPSHIRE SAID SEVEN OF THE FORMER HONDA SALES AND ADVERTISING EXECUTIVES FACE AS MANY AS FIVE YEARS IN PRISON AFTER PLEADING GUILTY IN FEDERAL COURT IN CONCORD TO CHARGES OF CONSPIRACY AND MAIL FRAUD AND FOR PARTICIPATING IN AN ADVERTISING KICKBACK SCHEME THE EIGHTH SALES EXECUTIVE PLEADED GUILTY TO RACKETEERING CHARGES AND FACES AS MANY AS 20 YEARS IN PRISON IN ADDITION FIVE OTHER FORMER SENIOR SALES EXECUTIVES WERE INDICTED BY A GRAND JURY ON CHARGES THAT INCLUDE FRAUD AND BRIBERY SCHEMES BETWEEN 1979 AND 1992 THE BRIBES ALLEGEDLY INVOLVE 10 MILLION IN CASH CARS REAL ESTATE AND JEWELRY ACCORDING TO PROSECUTORS ONE BRIBE SCHEME INVOLVED A SERIES OF PAYMENTS RANGING FROM 100000 TO 750000 FROM PEOPLE WHO WANTED NEW HONDA AND ACURA DEALERSHIPS THE AUTO MAKER SAID IN A STATEMENT IT WILL TAKE LEGAL ACTION TO RECOVER DAMAGES FROM ALL EXECUTIVES INVOLVED IN THE CRIMINAL ACTIVITY THESE ILLICIT ACTS REPRESENT A BETRAYAL OF TRUST THAT HARMED THE COMPANY AND DEFRAUDED AMERICAN HONDA OF MILLIONS OF DOLLARS THE AUTO MAKER SAID IN A STATEMENT THE ALLEGATIONS OF CORRUPTION IN HONDA'S MARKETING OPERATIONS SURFACED IN A LAWSUIT FILED IN 1989 BY A CONCORD NH ACURA DEALER THE DEALER CHARGED THAT HONDA IGNORED HIS STRUGGLING FRANCHISE WHILE GIVING SPECIAL TREATMENT TO A NEARBY ACURA DEALER WHO BRIBED THE DISTRICT SALES MANAGER WITH A CAR AND MONEY THE SPECIAL TREATMENT INCLUDED GIVING THE DEALER A GENEROUS NUMBER OF POPULAR ACURA MODELS THAT WERE IN SHORT SUPPLY FOR OTHER DEALERS ACURA IS HONDA'S LUXURY CAR DIVISION INVESTIGATIONS INTO THOSE CHARGES LED TO A BROADER PROBE BY THE FEDERAL BUREAU OF INVESTIGATION OF HONDA'S SALES AND MARKETING PRACTICES NUMEROUS DEALERS SAID THEY HAD GIVEN HONDA EXECUTIVES MONEY AND GIFTS IN EXCHANGE FOR ADEQUATE SUPPLIES OF CARS AND DEALERSHIPS IN DESIRABLE LOCATIONS THE PRACTICE HAD EXISTED FOR NEARLY TWO DECADES THE DEALERS SAID HONDA SAID IT IS TAKING STEPS TO ENSURE THAT THE COMPANY AND ITS EMPLOYEES ARE NOT BETRAYED AGAIN FOR INSTANCE HONDA IS IMPLEMENTING A FINANCIAL DISCLOSURE POLICY THAT WILL BE APPLIED TO ALL SENIOR EXECUTIVES WHO HAVE SUBSTANTIAL DECISIONMAKING AUTHORITY THE COMPANY ALSO SAID IT WILL ESTABLISH A TOLLFREE TELEPHONE NUMBER TO ENCOURAGE EMPLOYEES AND DEALERS TO EXPRESS CONCERNS OF POSSIBLE MISCONDUCT IN THE GRAND JURY'S ACTIONS TWO OF THE FIVE FORMER SENIOR SALES EXECUTIVES WERE INDICTED ON CHARGES OF RACKETEERING MAIL FRAUD AND CONSPIRACY THEY COULD FACE JAIL TERMS OF AS MANY AS THIRTY YEARS THE TWO ARE ALSO CHARGED WITH DIVERTING AMERICAN HONDA AND DEALER FUNDS INTO THEIR OWN POCKETS RATHER THAN PAYING FOR ADVERTISING AND SALES TRAINING EXPENSES THE MEN ALLEGEDLY RECEIVED BETWEEN 25 MILLION AND 3 MILLION IN KICKBACKS 9403150141 940315 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN WATER RISING BEHIND THE SARDAR SAROVAR DAM ON THE NARMADA RIVER IN WESTERN INDIA BEGAN SUBMERGING HOMES AFTER FLOODING FARMLAND WORK ON THE IRRIGATION AND HYDROELECTRIC PROJECT IS IN ITS FIRST STAGE THE DAM SYSTEM IS TO BE THE WORLD'S BIGGEST SURPASSING THE NEARLY COMPLETED ITAIPU DAM ON THE BRAZILPARAGUAY BORDER THE INDIAN NETWORK INVOLVING 30 LARGE AND 3000 SMALLER DAMS STRETCHING FROM SOUTHEAST OF NEW DELHI TO THE ARABIAN SEA IN THE WEST WILL PROVIDE DRINKING AND IRRIGATION WATER TO 40 MILLION PEOPLE IT WILL UPROOT A MILLION PEOPLE AND FLOOD 600 VILLAGES AND 865000 ACRES EACH OF FORESTS AND FARMLAND THE WATER LEVEL STARTED RISING LATE LAST MONTH WHEN THE DAM'S SLUICE GATES WERE CLOSED TO START STORING WATER WATER WAS SEEPING INTO HOMES IN THE VILLAGE OF VADGAM 500 MILES SOUTHWEST OF NEW DELHI SOME RESIDENTS REFUSED TO LEAVE ENVIRONMENTALISTS HAVE CAMPAIGNED AGAINST THE PROJECT SINCE 1987 A 1992 REVIEW BY THE WORLD BANK WHICH FINANCED PART OF THE WORK SAID INDIA HADN'T DONE ENOUGH TO RESETTLE DISPLACED VILLAGERS A SWISS PETITION DRIVE GATHERED ENOUGH SIGNATURES FOR ANOTHER VOTE ON JOINING THE EUROPEAN ECONOMIC AREA SWISS VOTERS IN DECEMBER 1992 REJECTED MEMBERSHIP IN THE EEA WHICH CONSISTS OF THE 12COUNTRY EUROPEAN UNION AND FIVE OF THE SEVEN EUROPEAN FREE TRADE ASSOCIATION MEMBERS AS LIECHTENSTEIN HAS CLOSE ECONOMIC TIES TO SWITZERLAND IT TOO IS OUTSIDE THE EEA BUT HAS SAID IT WANTS TO JOIN THE SWISS PETITIONS GO TO EXECUTIVE AND LEGISLATIVE BRANCHES FOR POSITION STATEMENTS BEFORE BALLOT SCHEDULING THE FEDERAL GOVERNMENT AND BUSINESS FAVOR EEA MEMBERSHIP WHICH OPPONENTS SAY WOULD THREATEN SWISS NEUTRALITY AND INDEPENDENCE ABOUT 2000 MEMBERS OF WESTERN GERMAN BANKING UNIONS HELD A BRIEF WARNING STRIKE THE TWO UNIONS SAID EMPLOYERS HADN'T MADE A WAGE OFFER IN THREE ROUNDS OF TALKS ON A 1994 CONTRACT FOR 450000 BANKING EMPLOYEES NEGOTIATIONS RESUME TOMORROW MORE DEMONSTRATIONS ARE PLANNED FOR TODAY AND FRIDAY THE UNIONS HAVE PROMISED TO LIMIT BANK DEPARTMENTS AFFECTED BY THE WALKOUTS TO AVOID INTERRUPTING BUSINESS FOR CUSTOMERS IN YESTERDAY'S PROTESTS ABOUT 900 WORKERS DISRUPTED TRAFFIC IN THE BANKING CENTER OF FRANKFURT ABOUT 20000 PEOPLE MARCHED THROUGH BUDAPEST DEMANDING PRESS FREEDOM AND PROTESTING DISMISSALS OF 129 EMPLOYEES OF HUNGARY'S STATE RADIO THE PROCESSION SPONSORED BY A HUMANRIGHTS WATCHDOG GROUP DEMOCRATIC CHARTER EMBARRASSED THE CENTERRIGHT GOVERNMENT WHICH VIEWS ITSELF AS A PIONEER IN EASTERN EUROPE'S TRANSITION TO DEMOCRACY HUNGARY'S GOVERNMENT WHICH HAS COMPLAINED OF BIASED TREATMENT BY THE MEDIA DENIED ANY ROLE IN THE DISMISSALS STATE RADIO BLAMED A TIGHT BUDGET OPINION POLLS SHOW TROUBLE IN THE MAY ELECTION FOR THE GOVERNMENT ACCUSED BY OPPOSITION PARTIES AND NEWSPAPERS OF TRYING TO SILENCE ITS CRITICS HO CHI MINH CITY VIETNAM'S COMMERCIAL HUB PLANS TO SPEND 200 MILLION THIS YEAR TO UPGRADE ITS ROADS WATER SUPPLY AND ELECTRICITY NETWORK THE OUTLAY WOULD TRIPLE SIMILAR SPENDING LAST YEAR THE ASIAN DEVELOPMENT BANK HAS APPROVED A 76 MILLION LOAN TO HELP FINANCE DRINKINGWATER IMPROVEMENTS IN THE SOUTHERN PORT CITY FORMERLY SAIGON HOME TO ABOUT FOUR MILLION PEOPLE THE CITY ALSO EARMARKED 15 MILLION TO ELECTRIFY OUTLYING VILLAGES AND INCREASE NETWORK CAPACITY MEANWHILE IN THE CAPITAL HANOI INDUSTRIAL PRODUCTION IN THIS YEAR'S FIRST TWO MONTHS INCREASED 25 TO 22 MILLION FROM A YEAR EARLIER RUSSIAN TELEVISION AND RADIO WHICH USED PLACE NAMES CREATED AFTER THE SOVIET UNION BROKE UP IN 1991 DROPPED THE PRONUNCIATIONS IN FAVOR OF TRADITIONAL NAMES THE NEW NAMES ADOPTED TO ACKNOWLEDGE LOCAL CUSTOMS OFFENDED SOME RUSSIANS WHILE OTHERS SAID EMBRACING THE OLD NAMES SMACKS OF LINGUISTIC COLONIALISM UNDER THE NEW POLICY BELARUS ONCE AGAIN IS REFERRED TO AS BYELORUSSIA MOLDOVA AS MOLDAVIA AND KYRGYZSTAN AS KIRGIZIA THE KAZAKH CAPITAL IS CALLED ALMAATA RATHER THAN ALMATY AND THE RUSSIAN REPUBLIC OF TATARSTAN AGAIN IS TATARIA THE STATERUN BROADCASTERS' DECISION REFLECTS SOME RUSSIANS' DESIRE TO PROTECT THEIR CULTURE AND LANGUAGE FROM BEING DEGRADED OR DISTORTED BY OTHER NATIONALITIES OF THE FORMER USSR A STATE TV OFFICIAL SAID THE MOVE DOESN'T INSULT THE OTHER REPUBLICS' DIGNITY YET IN THESE FARFLUNG REPUBLICS WHERE LOCAL LANGUAGES AND CULTURES HAVE REEMERGED THE RUSSIAN PROGRAMS ARE WIDELY POPULAR AS SOURCES OF NEWS AND ENTERTAINMENT INDONESIA RECEIVED WORLD BANK APPROVAL FOR A 350 MILLION CREDIT TO BACK A 6805 MILLION PROJECT TO UPGRADE AND REPAIR 2600 MILES OF ROADS AND BRIDGES MOSCOW'S MEDICAL SERVICE SAID AT LEAST 258 PEOPLE FROZE TO DEATH THIS WINTER MOST OF THE VICTIMS WERE DRUNKS WHOM THE RUSSIAN CAPITAL'S POLICE NO LONGER TAKE TO SOBERINGUP STATIONS AS CRIMPED FUNDS ARE AIMED AT CURBING GROWTH IN CRIME 9403150140 940315 WHO'S NEWS HARKEN ENERGY CORP HARKEN ENERGY CORP DALLAS RICHARD H SCHROEDER WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS OIL AND NATURALGAS COMPANY FILLING POSITIONS VACANT SINCE DECEMBER MR SCHROEDER 49 YEARS OLD WAS ALSO NAMED A DIRECTOR INCREASING THE NUMBER OF BOARD MEMBERS TO NINE MR SCHROEDER PREVIOUSLY OWNED AND OPERATED RHS MANAGEMENT INC A PETROLEUMINDUSTRY CONSULTING FIRM 9403150139 940315 TENTATIVE PACT IS SET REGARDING BREAST IMPLANTS NEGOTIATORS HOPE TO GIVE 4 BILLION AGREEMENT TO FEDERAL JUDGE SOON BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL NEGOTIATORS FOR BREASTIMPLANT MAKERS AND PLAINTIFFS REACHED AN AGREEMENT IN PRINCIPLE ON ALL MAJOR REMAINING ISSUES IN THE 4 BILLION SILICONE BREASTIMPLANT SETTLEMENT THE US COURT SYSTEM'S LARGEST PRODUCTLIABILITY PACT THE AGREEMENT WOULD OFFER COMPENSATION TO ANY WOMAN IN THE WORLD WITH ILLNESSES ALLEGEDLY RELATED TO SILICONE BREAST IMPLANTS PEOPLE FAMILIAR WITH THE TALKS SAID KEY PORTIONS OF THE TENTATIVE ACCORD WERE HAMMERED OUT OVER THE WEEKEND IN BIRMINGHAM ALA NEGOTIATORS HOPE TO PRESENT THE DEAL LATER THIS WEEK TO FEDERAL JUDGE SAM C POINTER JR OF US DISTRICT COURT IN BIRMINGHAM WHO SUPERVISES ALL FEDERAL BREASTIMPLANT LITIGATION IF MATTERS PROCEED ACCORDING TO THE CURRENT SCHEDULE JUDGE POINTER COULD SET PUBLIC HEARINGS IN THE NEXT SEVERAL WEEKS ON WHETHER THE AGREEMENT IS FAIR AND WHETHER HE SHOULD APPROVE IT FOLLOWING FINAL COURT APPROVAL WOMEN WITH IMPLANTS COULD BEGIN DECIDING AS EARLY AS THIS FALL WHETHER THEY WANT TO GET COMPENSATION FROM THE SETTLEMENT FUND OR PURSUE INDIVIDUAL LITIGATION AS THE AGREEMENT IS WRITTEN AND CURRENTLY INTERPRETED WOMEN TO PRESERVE THEIR LEGAL RIGHTS WOULD THEN HAVE TO NOTIFY A BIRMINGHAM COURTAPPOINTED ADMINISTRATOR OF THEIR INTENT TO PARTICIPATE OR TO OPT OUT AND PURSUE SEPARATE LAWSUITS EXECUTIVES AND DIRECTORS OF MAJOR MANUFACTURERS PARTICIPATING IN THE TALKS HAVEN'T SIGNED A FINAL VERSION OF THE SETTLEMENT SO GLITCHES STILL COULD ARISE AND A 25MEMBER PLAINTIFFLAWYER ADVISORY COMMITTEE HASN'T BEEN CONSULTED BUT NEGOTIATORS ON BOTH SIDES SAID THEY CONSIDER THESE STEPS TO BE LARGELY FORMALITIES THE DEAL IS DONE SAID ONE PARTICIPANT ANOTHER SAID WE'VE GOT A DEAL UNLESS SOMEBODY BACKS OUT OF A COMMITMENT PREVIOUSLY MADE THE MAIN CORPORATE PARTICIPANTS IN THE TALKS ARE DOW CORNING CORP A JOINT VENTURE OF DOW CHEMICAL CO AND CORNING INC BRISTOLMYERS SQUIBB CO AND BAXTER INTERNATIONAL INC ALSO EXPECTED TO SIGN THE AGREEMENT ACCORDING TO PARTICIPANTS IN THE TALKS ARE CHEMICAL SUPPLIER UNION CARBIDE CORP AND A NUMBER OF SMALLER COMPANIES THAT MADE IMPLANTS CONTAINING SILICONE GEL AND POLYURETHANE FOAM THE SOLE MAJOR MANUFACTURER THAT HASN'T REACHED AGREEMENT ON FUNDING THE SETTLEMENT IS MINNESOTA MINING & MANUFACTURING CO OF ST PAUL MINN GENERAL ELECTRIC CO A ONETIME SILICONE SUPPLIER ALSO IS HOLDING OUT AS IS MCGHAN MEDICAL CORP WHICH WAS OWNED BY 3M FROM 1977 TO 1984 MCGHAN NOW IS A UNIT OF INAMED CORP DURING THE CULMINATING HOURS OF THE WEEKEND TALKS 3M CONTINUED TO PROVIDE THE MAIN DRAMA AS IT HAS IN RECENT WEEKS THE COMPANY LAST FALL REJECTED THE CHANCE TO JOIN THE SETTLEMENT BUT IT AND TWO OTHER COMPANIES RECENTLY LOST A JURY VERDICT OF MORE THAN 30 MILLION IN A HOUSTON BREASTIMPLANT CASE IN RECENT WEEKS 3M HAS SOUGHT TO JOIN THE AGREEMENT THREE 3M LAWYERS STAYED IN BIRMINGHAM THROUGHOUT THE TALKS REPEATEDLY ASKING TO JOIN THE SESSIONS AND EVEN SEEKING JUDGE POINTER'S INTERCESSION ON THEIR BEHALF PARTICIPANTS SAY BUT PEOPLE FAMILIAR WITH THE EVENTS SAY 3M WAS REBUFFED BY LAWYERS FOR THE PLAINTIFFS WHO NOW ARE INSISTING 3M KICK IN 500 MILLION UP FRONT DOUBLE THE AMOUNT DISCUSSED LAST FALL IF IT WANTS TO JOIN THE GLOBAL DEAL PLAINTIFFS' NEGOTIATORS ARE DEMANDING THAT THE 500 MILLION BE PAID INTO THE FUND MUCH FASTER THAN SUMS PAID BY OTHER MANUFACTURERS SUCH A PAYMENT THUS WOULD REPRESENT A HIGHER PERCENTAGE OF THE FUND THAN 3M'S ONETIME MARKETSHARE PERCENTAGE ESTIMATED AT ABOUT 7 ACCORDING TO PARTICIPANTS IN THE TALKS DETAILS ALSO BEGAN TO EMERGE OF HOW ATTORNEYS' FEES WOULD BE PARCELED OUT BY THE GLOBAL FUND TO LAWYERS REPRESENTING WOMEN WITH IMPLANTS JUDGE POINTER SAID IN A COURT HEARING THAT NO MORE THAN 25 OF THE TOTAL 4 BILLION FUND WOULD GO FOR ATTORNEYS' FEES AND COSTS AND THAT AT LEAST 75 OF THE FUND WOULD GO TO WOMEN WHO ALLEGE SILICONERELATED ILLNESSES THE JUDGE EXPLAINED THAT THE 25 FIGURE WOULD INCLUDE THE EXTENSIVE ADMINISTRATIVE COSTS OF RUNNING A COMPENSATION PROGRAM FOR ABOUT ONE MILLION WOMEN THE 25 FIGURE ALSO WOULD INCLUDE THE OFTENLARGE COSTS TO ATTORNEYS ASSOCIATED WITH TAKING DEPOSITIONS AND PURSUING OTHER EXPENSIVE FACTFINDING IN LENGTHY LITIGATION PARTICIPANTS IN PRIVATE SESSIONS WITH THE JUDGE SAID HE DISCLOSED HIS INTENT TO HONOR PLAINTIFFLAWYER CONTINGENCYFEE AGREEMENTS EVEN THOSE SET AT A HIGHER PERCENTAGE THAN 25 AT LEAST IN INSTANCES WHERE ATTORNEYS HAVE DONE SUBSTANTIAL AMOUNTS OF WORK 9403150138 940315 WHO'S NEWS LEHMAN TO OPEN BOMBAY OFFICE NEW YORK LEHMAN BROTHERS INC SAID IT PLANS TO ESTABLISH AN OFFICE IN BOMBAY THIS YEAR AND NAMED MV SREEDHAR MENON A MANAGING DIRECTOR RESPONSIBLE FOR BUSINESS DEVELOPMENT AND SENIOR RELATIONSHIP MANAGEMENT IN INDIA MR MENON WHO WILL BE BASED IN NEW YORK PRIOR TO JOINING LEHMAN BROTHERS WAS DEPUTY PRESIDENT A MEMBER OF THE BOARD AND HEAD OF THE AEB BRANCH NETWORK AT AMERICAN EXPRESS BANK HE ALSO WAS CHAIRMAN OF THE BOARD OF AMERICAN EXPRESS BANK INTERNATIONAL LEHMAN BROTHERS IS A UNIT OF AMERICAN EXPRESS CO 9403150137 940315 INTERNATIONAL SOUTH KOREAN TRADE DEFICIT SEOUL SOUTH KOREA SOUTH KOREA'S TRADE BALANCE REGISTERED A 480 MILLION DEFICIT IN FEBRUARY MARKING TWO STRAIGHT MONTHS OF DEFICITS THE KOREA CUSTOMS ADMINISTRATION SAID THE FEBRUARY DEFICIT COMPARED WITH THE PREVIOUS YEAR'S DEFICIT OF 550 MILLION THE CUSTOMS ADMINISTRATION ADDED EXPORTS FOR FEBRUARY ROSE 49 TO 623 BILLION ON A CUSTOMS CLEARANCE BASIS FROM 594 BILLION IN THE PREVIOUS YEAR IMPORTS WERE 671 BILLION IN FEBRUARY UP 34 9403150136 940315 INTERNATIONAL BAA'S FEBRUARY AIRPORT TRAFFIC LONDON UNITED KINGDOM AIRPORT ADMINISTRATOR BAA PLC SAID ITS SEVEN AIRPORTS HANDLED 53 MILLION PASSENGERS IN FEBRUARY AN INCREASE OF 59 ON FEBRUARY 1993 TRAFFIC AT ITS TWO BIGGEST AIRPORTS HEATHROW AND GATWICK INCREASED 74 AND 04 RESPECTIVELY BAA SAID BAA SAID ITS SCOTTISH AIRPORTS ALL RECORDED GROWTH WITH THE EXCEPTION OF ABERDEEN WHICH WAS HURT BY BAD WEATHER DOMESTIC TRAFFIC ROSE 5 EUROPEAN SCHEDULED TRAFFIC ROSE 6 AND IRISH TRAFFIC ROSE 9 THE LONGHAUL SECTOR ROSE 15 BUT NORTH ATLANTIC TRAFFIC FELL 3 AS A RESULT OF SEVERE WEATHER DISRUPTIONS ON THE US EAST COAST 9403150135 940315 Q WHAT ANGERS A JOURNALIST MOST A LOSING A CHANCE AT A FREE MOVIE BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL TONIGHT 1100 MEMBERS OF THE NEW YORK MEDIA WILL ENJOY A FREEBIE A SPECIAL PREVIEW OF A MOVIE ABOUT AN AGGRESSIVE TABLOID NEWSPAPER TROUBLE IS ANOTHER 1000 JOURNALISTS WILL BE MAD AS HELL AND THEY'LL JUST HAVE TO TAKE IT IT'S NOT BECAUSE THE MOVIE THE PAPER PRODUCED BY UNIVERSAL CITY STUDIOS CRITICIZES THE MEDIA IT'S BECAUSE WHEN MANY NEWSPAPER AND BROADCAST REPORTERS AND EDITORS TRIED TO ACCEPT THE INVITATIONS THEY HAD RECEIVED THEY WERE TOLD THAT THE THEATER WAS ALREADY BOOKED BIG MOVIE PREVIEWS ARE OFTEN OVERBOOKED BUT RARELY TO THIS DEGREE I'VE BEEN PERSONALLY ABUSED ON THE PHONE FOR DAYS BY DOZENS OF MEDIA MEMBERS WHO WERE INVITED AND THEN DISINVITED TO THE MOVIE SAYS MARLENE SANDERS WHO WORKS FOR THE COLUMBIA UNIVERSITY GRADUATE SCHOOL OF JOURNALISM WHICH COSPONSORED THE PREVIEW UNIVERSAL JUST INVITED TOO MANY PEOPLE AND DIDN'T SAY FIRSTCOME FIRSTSERVED' ON THE INVITATION SHE SAYS IT'S A REAL GOOF AND EMBARRASSMENT MARK KALISH MANAGING EDITOR OF THE NEW YORK POST ONE OF THE NEWSPAPERS THE MOVIE IS MODELED ON IS ESPECIALLY DISTRAUGHT LAST JUNE THE MOVIE MAKERS TIED UP OUR NEWSROOM AND PRESSROOM AND I PERSONALLY FILLED IN MICHAEL KEATON ONE OF THE STARS ON HOW A NEWSPAPER LIKE OURS IS PUT TOGETHER HE SAYS AND I DIDN'T EVEN GET AN INVITATION ALL I GOT WAS AN AUTOGRAPHED PICTURE OF RON HOWARD THE DIRECTOR AS A RESULT MR KALISH SAYS HE'S DISINCLINED TO PUT FEATURE STORIES IN THE POST ABOUT THE MOVIE ONE REPORTER PHONED THE RSVP NUMBER ON THE INVITATION AT LEAST A DOZEN TIMES JUST AFTER GETTING THE INVITATION LAST WEEK THE LINE WAS BUSY WHEN IT FINALLY CLEARED THE MAN WHO ANSWERED SAID SORRY WE'RE ALREADY BOOKED TINA CREPATSCHKO A PUBLIC RELATIONS ASSISTANT WITH UNIVERSAL ISN'T OFFERING ANY APOLOGIES COLUMBIA UNIVERSITY SHOULD HAVE BEEN A LITTLE MORE SELECTIVE IN SENDING US SUCH A BIG LIST SHE SAYS THIS IS AN EVENT NOT A BENEFIT MS SANDERS OF COLUMBIA UNIVERSITY SAYS THAT AS A RESULT OF THE OVERBOOKING SIX MEMBERS OF THE SCHOOL OF JOURNALISM'S FACULTY HAVE HAD TO SURRENDER THEIR TICKETS TO THE MEDIA AND THEY'RE PRETTY UPSET UNIVERSAL SHOULD HAVE BOOKED IT AT SHEA STADIUM INSTEAD OF A MIDTOWN THEATER SHE SAYS THE NEW YORK POST'S MANAGING EDITOR IS MARC KALECH HIS NAME WAS MISSPELLED IN AN ARTICLE YESTERDAY ABOUT A PREVIEW OF THE MOVIE THE PAPER 9403150134 940315 BLACK & DECKER UNIT'S CONTRACTS MCLEAN VA A BLACK & DECKER CORP UNIT SAID IT WON TWO CONTRACTS FROM THE ENVIRONMENTAL PROTECTION AGENCY WITH A POTENTIAL VALUE OF AS MUCH AS 200 MILLION OVER THE NEXT FIVE YEARS PRC ENVIRONMENTAL MANAGEMENT INC A PROVIDER OF SCIENTIFIC AND TECHNOLOGYBASED SYSTEMS AND SERVICES TO GOVERNMENT AND COMMERCIAL CLIENTS WILL WORK WITH THE EPA TO ENFORCE THE PROPER MANAGEMENT OF SOLID WASTE PRC EMPLOYS 6800 PEOPLE AND HAD REVENUE OF 761 MILLION IN 1993 9403150133 940315 AUCTION HOUSES SAY 1993 EARNINGS INCREASED SHARPLY BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SLAMMING THE DOOR SHUT ON THE ARTMARKET RECESSION BOTH SOTHEBY'S HOLDINGS INC AND CHRISTIE'S INTERNATIONAL PLC REPORTED THAT 1993 WAS THEIR MOST PROFITABLE YEAR SINCE 1990 AT BOTH NEW YORK AUCTION HOUSE SOTHEBY'S AND ITS LONDONBASED RIVAL CHRISTIE'S 1993 EARNINGS WERE MORE THAN DOUBLE YEAREARLIER LEVELS IT APPEARS THAT THE ART MARKET IS RECOVERING FROM ITS COLLAPSE IN 1990 AND THAT THE COSTLY EXPANSION AND RESTRUCTURING THAT BOTH FIRMS UNDERTOOK DURING THE DOWNTURN ARE LARGELY OVER SOTHEBY'S WHICH CELEBRATED ITS 250TH ANNIVERSARY LAST WEEK SAID FOURTHQUARTER NET INCOME SOARED 78 SOTHEBY'S SHARE PRICE ROSE 375 CENTS TO 1875 ON THE NEWS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ITS HIGHEST LEVEL SINCE JUNE 1990 CHRISTIE'S DOESN'T RELEASE QUARTERLY PROFITS AUCTIONHOUSE OFFICIALS AREN'T PREDICTING A RETURN TO THE STRATOSPHERIC PRICES OF THE LATE 1980S BUT THERE HAS BEEN A GOOD SOLID IMPROVEMENT IN THE MARKET SAID DIANA D BROOKS OF SOTHEBY'S MRS BROOKS CURRENTLY SOTHEBY'S WORLDWIDE HEAD OF AUCTION OPERATIONS WILL TAKE OVER AS ITS PRESIDENT APRIL 1 UPON THE DEPARTURE OF MICHAEL AINSLIE BUT DESPITE THE SHARP INCREASE IN PROFIT THE AUCTION INDUSTRY'S PROBLEMS AREN'T ALL NECESSARILY IN THE PAST SALES REMAIN SOFT IN EUROPE SUBSTANTIALLY MORE GOODQUALITY PROPERTY IS HITTING THE AUCTION BLOCK BUT ESTATE ATTORNEYS ARE INCREASINGLY REQUESTING CASH ADVANCES OR PRICE GUARANTEES A RISKY PRACTICE FOR THE AUCTION HOUSES HOWEVER BOTH FIRMS REPORT THAT PAINTING AND FURNITURE SALES INCREASED MARKEDLY IN 1993 AND JEWELRY SALES WERE PARTICULARLY STRONG AT CHRISTIE'S FOR EXAMPLE JEWELRY SALES ROSE 29 IN 1993 SOTHEBY'S SAID THAT FOURTHQUARTER NET INCOME ROSE TO 206 MILLION OR 36 CENTS A SHARE FROM 116 MILLION OR 21 CENTS A SHARE IN 1992 REVENUE FOR THE QUARTER ROSE 23 TO 1037 MILLION FROM 845 MILLION SOTHEBY'S SAID IT TOOK A 24 MILLION NONRECURRING CHARGE AGAINST PRETAX EARNINGS RELATED TO SEVERANCE PAYMENTS AND FURTHER REORGANIZATION OF ITS EUROPEAN AND ASIAN OPERATIONS SOTHEBY'S NET FOR THE YEAR ROSE TO 193 MILLION OR 35 CENTS A SHARE FROM 4 MILLION OR SEVEN CENTS A SHARE IN 1992 WHEN SOTHEBY'S TOOK A 49 MILLION RESTRUCTURING CHARGE FOR STAFF CUTBACKS AND OTHER COSTS RELATED TO ITS EUROPEAN REORGANIZATION AUCTION SALES FOR THE YEAR ROSE 194 MILLION TO 13 BILLION CHRISTIE'S REPORTED 1993 PRETAX PROFIT ROSE TO 285 MILLION OR 10 CENTS A SHARE UP FROM 111 MILLION OR 37 CENTS A SHARE IN 1992 THE RESULTS INCLUDED A ONETIME GAIN OF 4 MILLION FROM THE SALE OF RESIDENTIAL REAL ESTATE TOTAL 1993 AUCTION SALES CLIMBED TO 11 BILLION FROM 106 BILLION A YEAR EARLIER CHRISTIE'S DOESN'T RELEASE EARNINGS AFTER TAXES 9403150132 940315 WHO'S NEWS ALLEGHENY POWER NAMES CHIEF NEW YORK ALLEGHENY POWER SYSTEM INC SAID ALAN J NOIA 47 YEARS OLD WAS ELECTED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS ELECTRIC UTILITY HOLDING COMPANY AND ITS SUBSIDIARY ALLEGHENY POWER SERVICE CORP EFFECTIVE SEPT 1 1994 A SUCCESSOR TO MR NOIA WHO HAS SERVED AS PRESIDENT OF THE POTOMAC EDISON CO AN ALLEGHENY SUBSIDIARY SINCE JUNE 1990 WASN'T NAMED IMMEDIATELY MR NOIA JOINED THE COMPANY IN 1969 AS PRESIDENT OF THE PARENT HE SUCCEEDS KLAUS BERGMAN WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALLEGHENY'S PRINCIPAL SUBSIDIARIES INCLUDE ALLEGHENY POWER SERVICE CORP POTOMAC EDISON MONONGAHELA POWER CO AND WEST PENN POWER CO 9403150131 940315 AMERITECH'S PHONE DEBIT CARD CHICAGO AMERITECH CORP LAUNCHED IN MICHIGAN ITS COINSAVER DEBIT CARD FOR PAYTELEPHONE USERS IN A NEWS RELEASE THE REGIONAL TELEPHONE COMPANY SAID COINSAVER CARDS WHICH ARE IN DENOMINATIONS OF 2 5 AND 10 CAN BE USED FOR LOCAL LONGDISTANCE AND INTERNATIONAL CALLS FROM AMERITECH PAY PHONES 9403150130 940315 ITT PLANS TO OFFER PUBLIC 20 STAKE IN EDUCATION UNIT BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ITT CORP SAID IT WILL OFFER ABOUT 20 OF ITS ITT EDUCATIONAL SERVICES INC UNIT TO THE PUBLIC LATER THIS YEAR ANALYSTS VIEW THE PLAN AS A LIKELY PRELUDE TO SELLING THE UNIT OUTRIGHT THE UNIT WHICH HAS ABOUT 20000 FULLTIME STUDENTS IN 48 SCHOOLS IS ONE OF ITT'S LESS PROMINENT OPERATIONS WHILE THE COMPANY DECLINED TO PROVIDE FINANCIAL SPECIFICS ANALYSTS SAY THE UNIT HAD ABOUT 125 MILLION IN REVENUE IN 1993 WITH A PRETAX PROFIT OF ABOUT 25 MILLION THE ANNOUNCEMENT UNDERSCORED ITT'S RECENT EFFORTS TO REVAMP ITS COLLECTION OF BUSINESSES IN THE PAST SEVERAL MONTHS ITT HAS SPUN OFF ITS LAGGING RAYONIER TIMBER UNIT RECAPITALIZED ITS ITT SHERATON INC UNIT AND ANNOUNCED MORE THAN 18 BILLION IN SPENDING AND ACQUISITION PLANS FOR THE HOTEL UNIT THE OFFERING WILL ENABLE EDUCATIONAL SERVICES TO GET SOME SEASONING AS A COMPANY SAID GARY SCHNEIDER AN ANALYST WITH BEAR STEARNS & CO IN A REPORT AFTER WHICH WE EXPECT ITT TO SELL ITS REMAINING EQUITY INTEREST ITT DECLINED TO SAY WHETHER IT WOULD SELL THE UNIT OUTRIGHT THE UNIT IS ONE OF ITT'S MORE DIVERSE BUSINESSES THE 22 BILLION COMPANY THAT MAKES TOPOFTHELINE ANTILOCK BRAKING SYSTEMS AND NIGHTVISION GOGGLES AND OWNS HOTELS ALSO EDUCATES LOCAL PLUMBERS AND REFRIGERATOR REPAIRERS DEGREE PROGRAMS AT THE TECHNICAL INSTITUTES INCLUDE HEATING AIR CONDITIONING AND REFRIGERATION COMPUTERAIDED DRAFTING AND AUTOMATED MANUFACTURING TECHNOLOGY THERE'S A SPOTLIGHT ON FORPROFIT EDUCATION THESE DAYS SAID ANDREW BEJA A SCHOOLS ANALYST WITH ADVEST MR BEJA CITED A GROWING INTEREST IN MORE NARROWLY FOCUSED TECHNICAL POSTSECONDARY EDUCATION AND THE SUCCESS THE INSTITUTES HAVE HAD IN FINDING GRADUATES WORK THESE SCHOOLS FOCUS THEMSELVES ON WHERE THE JOBS WILL BE COMING FROM IN THE NEXT 10 TO 15 YEARS SUCH AS MANAGEMENT INFORMATION SYSTEMS ELECTRONICS COMPUTER SYSTEMS AND TELECOMMUNICATIONS MR BEJA SAID BUT ANALYSTS ALSO SAID GROWING CONCERN ABOUT ABUSE OF THE FEDERAL LOAN SYSTEM MAY HAVE PROMPTED ITT'S MOVE LIKE MOST SCHOOLS IN THE PROPRIETARY OR FORPROFIT EDUCATIONAL SYSTEM ITT TECHNICAL INSTITUTES RELY HEAVILY ON FEDERAL LOAN PROGRAMS TO COVER STUDENT EXPENSES SOME ANALYSTS BELIEVE THAT INCREASING DEFAULT PROBLEMS AT TECHNICAL SCHOOLS COULD LEAD TO STIFFER REGULATORY REQUIREMENTS EVEN FOR THOSE SCHOOLS WITHOUT EXISTING PROBLEMS ITT SPOKESMAN JAMES GALLAGHER SAID THE ITT SCHOOLS HAD NO FEDERAL LOAN PROBLEMS IN 1991 FEDERAL REGULATORS REPORTED THAT ITT'S DEFAULT RATE WAS ABOUT 155 REGULATIONS REQUIRE SCHOOLS TO REMAIN BELOW 30 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ITT STOCK GAINED 375 CENTS OR 04 TO CLOSE AT 8650 9403150129 940315 INTERNATIONAL SWEDISH JOBLESS RATE STOCKHOLM THE OFFICIAL SWEDISH UNEMPLOYMENT RATE DECREASED TO 83 OF THE WORK FORCE IN FEBRUARY FROM 88 IN JANUARY BUT ROSE FROM 73 IN FEBRUARY 1993 ACCORDING TO SCB THE NATIONAL STATISTICS AGENCY 9403150128 940315 WHO'S NEWS CHEMICAL GIVES LEE MORE RESPONSIBILITY IN BANK RESTRUCTURING NEW YORK CHEMICAL BANKING CORP GAVE ADDITIONAL CORPORATE RESPONSIBILITIES TO JAMES B LEE JR HEAD OF ITS LOANSYNDICATIONS GROUP AS PART OF A REORGANIZATION OF ITS GLOBAL BANK MR LEE 41 HAD REPORTED TO MARK SOLOW SENIOR EXECUTIVE VICE PRESIDENT AND MEMBER OF THE BANK'S MANAGEMENT COMMITTEE HE NOW WILL BE IN CHARGE OF CORPORATE FINANCE PRODUCTS REPORTING TO VICE CHAIRMAN WILLIAM HARRISON AND WILL JOIN THE BANK'S 16PERSON MANAGEMENT COMMITTEE UNDER MR LEE'S LEADERSHIP THE GROUP HAS BECOME THE NO 1 SYNDICATOR OF US BANK FINANCING MR SOLOW 45 WILL TAKE OVER THE BANKING CONCERN'S CLIENT RELATIONSHIPS FOR NORTH AMERICA WESTERN EUROPE AND ASIA PREVIOUSLY MR SOLOW HAD CLIENT RESPONSIBILITIES FOR US AND CANADIAN COMPANIES A SPOKESMAN SAID THESE CHANGES REFLECT A SHIFT TOWARD A FUNCTIONAL STRUCTURE IN ORDER TO SERVE OUR GLOBAL CLIENTS MORE EFFECTIVELY AND EXPAND AND BUILD UPON OUR LEADERSHIP POSITIONS IN IMPORTANT PRODUCT AREAS MR HARRISON SAID 9403150127 940315 CALIFORNIA QUARTZ UNIT CONTRACT COSTA MESA CALIF CALIFORNIA QUARTZ INC'S FOCUS AUTOMATION CORP UNIT SAID IT WILL PROVIDE COMPUTER TRAINING NATIONWIDE FOR CENTURY 21 REAL ESTATE CORP THE COMPANY SAID THE ANNUAL CONTRACT IS INITIALLY VALUED AT ABOUT 225000 CENTURY 21 IS A UNIT OF METROPOLITAN LIFE INSURANCE CO 9403150126 940315 CARLSON TO MERGE TRAVELAGENT LINES WITH UNIT OF ACCOR BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL JOINING TWO OF THE BIGGEST NAMES IN THE TRAVELAGENT INDUSTRY CARLSON COS SAID IT WILL MERGE ITS TRAVELAGENT OPERATIONS WITH WAGONLIT TRAVEL OF PARIS CREATING AN ENTERPRISE WITH 4000 LOCATIONS IN 125 COUNTRIES CARLSON AND WAGONLIT'S PARENT ACCOR GROUP WILL EACH INJECT 45 MILLION INTO THE NEW VENTURE OVER THE NEXT FIVE YEARS AND EACH WILL RETAIN A 50 OWNERSHIP OF IT TOP MANAGEMENT OF THE COMBINED COMPANY CALLED CARLSON WAGONLIT TRAVEL WILL ALSO BE EVENLY DIVIDED BETWEEN THE TWO AGENCIES CARLSON'S AND ACCOR'S OTHER TRAVELRELATED PROPERTIES INCLUDING HOTELS AND CARRENTAL CONCERNS ARE NOT PART OF THE DEAL THE COMPANIES EXPECT THE DEAL TO BE COMPLETED THIS SUMMER THE MOVE WOULD CREATE WHAT APPEARS TO BE THE WORLD'S LARGEST TRAVEL AGENCY WITH 108 BILLION IN ANNUAL TRAVEL SALES THAT WOULD SURPASS AMERICAN EXPRESS CO WHICH HAS ABOUT 8 BILLION AGENCY SALES FIGURES ARE NOT PUBLICLY REPORTED AND DIFFICULT TO COME BY THE PLANNED MERGER UNDERSCORES THE CONTINUING CONSOLIDATION OF THE AGENCY BUSINESS AND WILL LIKELY PRESSURE RIVALS TO SEEK OUT PARTNERS WHILE THERE ARE 35000 US AGENCIES THE TOP HALFDOZEN COMPANIES ACCOUNT FOR ABOUT 20 OF ALL TRAVEL SALES AND DOMINATE THE LUCRATIVE BUSINESSTRAVEL MARKET SIZE AND GLOBAL REACH HAVE BECOME INCREASINGLY IMPORTANT FOR AGENCIES AS GROWING NUMBERS OF CUSTOMERS WANT TRAVELAGENCY REPRESENTATION WHEREVER THEY GO IN ADDITION MEGAAGENCIES THAT CAN PACK PLANES AND FILL HOTELS HAVE MORE BARGAINING CLOUT WITH SUPPLIERS CARLSON BASED IN MINNEAPOLIS OWNS RADISSON HOTELS INTERNATIONAL AND TGIFRIDAY'S RESTAURANTS AMONG OTHER BUSINESSES AND HAS ANNUAL REVENUE OF 107 BILLION ACCOR WITH 14 BILLION IN ANNUAL REVENUE ALSO OPERATES RESTAURANTS THE EUROPCAR RENTAL BUSINESS AND HOTELS INCLUDING MOTEL 6 AND NOVOTEL HEADQUARTERS FOR THE NEW AGENCY VENTURE WILL BE IN LONDON A SYMBOLIC COMPROMISE BETWEEN MINNEAPOLIS AND PARIS THE COMPANIES SAID UNDER TERMS OF THE AGREEMENT BUSINESSTRAVEL ACCOUNTS IN NORTH AMERICA WILL BE HANDLED BY CARLSON TRAVEL GROUP UNDER THE CARLSON WAGONLIT BRAND IN EUROPE THESE ACCOUNTS WILL BE MANAGED BY THE WAGONLIT TRAVEL ORGANIZATION UNDER THE NEW BRAND NAME FOR THE REST OF THE WORLD THE COMBINED COMPANY WILL BE RESPONSIBLE FOR MANAGING AND DEVELOPING NEW ACCOUNTS AND MARKETS PARTICULARLY ASIA AND THE PACIFIC RIM JACQUELINE SIMMONS CONTRIBUTED TO THIS ARTICLE 9403150125 940315 CREDIT RATINGS S&P RAISES OR AFFIRMS RATINGS FOR CITICORP ON 18 BILLION OF DEBT NEW YORK STANDARD & POOR'S CORP RAISED OR AFFIRMED ITS RATINGS ON CITICORP AND A NUMBER OF ITS UNITS AFFECTING ABOUT 18 BILLION OF DEBT THE RATINGS CONCERN SAID THE CHANGES REFLECT PROGRESS THE BANKING COMPANY HAS MADE IN IMPROVING ITS FINANCIAL STRENGTH RATINGS RAISED INCLUDE SENIOR DEBT TO SINGLEA FROM SINGLE AMINUS AND SUBORDINATED DEBT TO SINGLE AMINUS FROM TRIPLE BPLUS CITICORP PREFERRED STOCK WAS RAISED TO TRIPLE B FROM TRIPLE BMINUS S&P SAID CITICORP HAS RETURNED TO SUSTAINABLE LEVELS OF PROFITABILITY AND REBUILT ITS CAPITAL AND RESERVES TO LEVELS WITHIN INDUSTRY NORMS IN ADDITION A HEAVY BURDEN OF PROBLEM LOANS IS BEING STEADILY WORKED DOWN MORE IMPORTANTLY MANAGEMENT IS SEEKING TO IMPLEMENT A DISCIPLINED METHOD OF RISK CONTROL TO PREVENT SUCH PROBLEMS FROM RECURRING THE BANK BENEFITS FROM EXTRAORDINARY DIVERSITY BY PRODUCT LINE AND GEOGRAPHICALLY WITH OPERATIONS AROUND THE GLOBE IT IS AN INDUSTRY LEADER AND INNOVATOR IN A MULTITUDE OF VERY PROFITABLE BANKING BUSINESSES SUCH AS CREDIT CARDS AND VARIOUS TRADING AND CAPITAL MARKETS ACTIVITIES AS A RESULT S&P SAID CITICORP CONTINUES TO HAVE THE EARNINGS BASE AND FINANCIAL FLEXIBILITY TO WITHSTAND PERIODS OF ADVERSITY AS IT HAS THROUGH THE REALESTATE AND LATIN AMERICAN LENDING DIFFICULTIES OF THE LAST DECADE STILL S&P SAID IT EXPECTS CITICORP TO CONTINUE TO BUILD CAPITAL AND RESERVES S&P SAID THE RATINGS SHOULD REMAIN STABLE UNTIL THE BANK DEMONSTRATES SUCCESS IN REORIENTING ITS INTERNAL STRUCTURE AND MANAGING RISK 9403150124 940315 RAWSTEEL PRODUCTION ROSE 11 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 11 LAST WEEK TO 1892000 TONS FROM 1872000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 49 FROM THE 1804000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 919 OF ITS CAPABILITY LAST WEEK COMPARED WITH 909 THE PREVIOUS WEEK AND 853 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9403150123 940315 MERRILL SHARES THE WEALTH WITH TOP EXECUTIVES BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO'S RUN OF BULLISH EARNINGS BUOYED THE 1993 PAY PACKAGES OF ITS TOP FOUR EXECUTIVES TO MORE THAN 6 MILLION APIECE SIGNALING ANOTHER RECORD YEAR FOR WALL STREET PAY IN A PROXY STATEMENT MERRILL SAID CHAIRMAN AND CHIEF EXECUTIVE OFFICER DANIEL P TULLY RECEIVED A 1993 PAY PACKAGE VALUED AT ABOUT 99 MILLION MERRILL THE NATION'S BIGGEST BROKERAGE FIRM POSTED RECORD PROFIT LAST YEAR MR TULLY RECEIVED 1993 CASH PAY OF 67 MILLION UP 29 FROM 1992 HE ALSO RECEIVED RESTRICTED STOCK AND OPTIONS ON MERRILL SHARES THAT THE COMPANY CURRENTLY VALUES AT ABOUT 3 MILLION BUT THAT DON'T FULLY VEST FOR FOUR YEARS THREE OTHER SENIOR EXECUTIVES RECEIVED PAY PACKAGES CURRENTLY VALUED AT MORE THAN 6 MILLION AN AVERAGE INCREASE OF 23 FROM 1992 PAY LEVELS THE PAY PACKAGES MAY BE LARGE BUT MERRILL HAS ALIGNED ITS INTERESTS AND PAY WITH HOW SHAREHOLDERS ARE BEING REWARDED OR SUFFERING SAYS GUY MOSZKOWSKI AN ANALYST AT SANFORD C BERNSTEIN & CO WITH THE FOURFOLD RUNUP IN MERRILL'S STOCK SINCE EARLY 1991 SHAREHOLDERS REALLY AREN'T GOING TO COMPLAIN HE SAYS MEANWHILE MERRILL IS TAKING STEPS TO FORMALLY TIE ITS EXECUTIVES' PAY TO PERFORMANCE GOALS NET INCOME AND RETURN ON EQUITY IN A BID TO PROTECT ITS CORPORATE TAX DEDUCTIONS FOR EXECUTIVE PAY OVER 1 MILLION AS REPORTED WALL STREET FIRMS ARE SCRAMBLING TO PROTECT THEIR CORPORATE TAX DEDUCTIONS IN THE WAKE OF A NEW TAX LAW THAT BARS ANY PUBLICLY HELD CORPORATION FROM DEDUCTING SALARIES OF MORE THAN 1 MILLION APIECE FOR ITS TOP EXECUTIVES UNLESS THE PAY IS BASED ON PERFORMANCE GOALS APPROVED BY SHAREHOLDERS NOBODY AT MERRILL RECEIVED HIGHER PAY THAN MR TULLY IN 1993 BUT A HANDFUL OF TRADERS AND INVESTMENT BANKERS RECEIVED 1993 PAY PACKAGES OF MORE THAN 6 MILLION PEOPLE FAMILIAR WITH MERRILL SAY WE DON'T COMMENT ON THE COMPENSATION OF OTHER EMPLOYEES OTHER THAN THOSE WE HAVE TO PUBLICLY DISCLOSE A SPOKESMAN SAID MERRILL'S FAT PAYCHECKS INDICATE THAT 1993 WILL BE THE THIRDCONSECUTIVE RECORD YEAR FOR WALL STREET'S ALREADYLOFTY PAY LEVELS THE NATION'S SECURITIES FIRMS HAD PRETAX PROFIT OF 895 BILLION LAST YEAR 45 ABOVE THE PRIOR RECORD IN 1992 MORE THAN A HANDFUL OF WALL STREET EXECUTIVES AND TRADERS EARNED 10 MILLION AND UP MERRILL'S EXECUTIVE PAY IS AMONG THE HIGHEST ON WALL STREET AS IS ITS PROFIT IN 1993 MERRILL HAD RECORD PRETAX EARNINGS OF 24 BILLION NET INCOME OF 139 BILLION BEFORE THE EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES WAS THE HIGHEST EVER BY A US PUBLICLY TRADED BROKERAGE FIRM AND 47 ABOVE 1992 LEVELS MERRILL'S 1993 RETURN ON EQUITY WAS 278 OVER THE PAST FIVE YEARS MERRILL'S STOCK HAS FAR OUTPACED THE STANDARD & POOR'S500 INDEX AS WELL AS A GROUP OF 10 SECURITIESINDUSTRY RIVALS YESTERDAY MERRILL'S STOCK FELL 25 CENTS TO 43 A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FOR THE PAST SEVERAL YEARS THE ONLY PUBLICLY TRADED WALL STREET FIRM PAYING TOP EXECUTIVES MORE THAN MERRILL IS BEAR STEARNS COS FOR BEAR'S 1993 FISCAL YEAR ENDED JUNE 30 THE CHAIRMAN AND THE CHIEF EXECUTIVE EACH GOT CASH PAY OF 159 MILLION BEAR SAYS THE BULK OF ITS EXECUTIVE PAY IS TIED TO THE FIRM'S PERFORMANCE MERRILL DEFENDS ITS COMPENSATION THESE ARE COMPETITIVE PAY LEVELS OF THIS INDUSTRY FOR PEOPLE IN THESE POSITIONS A SPOKESMAN SAYS THIS IS WHAT IT TAKES TO RETAIN THE BEST POSSIBLE TOP EXECUTIVES THE 1993 PAY OF MR TULLY WHO BECAME MERRILL CHAIRMAN IN JUNE INCLUDES RESTRICTED MERRILL STOCK VALUED AT 145 MILLION WHEN IT WAS APPROVED ON JAN 17 1994 THE VALUE OF THIS RESTRICTED STOCK ROSE TO 147 MILLION ON JAN 26 THE DAY IT WAS GRANTED MR TULLY ALSO RECEIVED OPTIONS ON 133920 MERRILL SHARES WHICH CAN BE EXERCISED OVER FOUR YEARS AT A PRICE OF 40625 A SHARE MERRILL VALUED THE STOCK OPTIONS AT 145 MILLION WHEN THEY WERE APPROVED BUT THE VALUE ROSE TO 158 MILLION BY THE DAY THEY WERE GRANTED MR TULLY ALSO RECEIVED 161342 IN OTHER COMPENSATION IN 1993 THE PROXY SAYS AS OF DEC 31 MR TULLY ALSO HELD MORE THAN 40 MILLION IN UNEXERCISED OPTIONS ON MERRILL SHARES 264 MILLION OF WHICH WERE EXERCISABLE IN ADDITION TO MR TULLY SEVERAL OTHER MERRILL SENIOR EXECUTIVES RECEIVED PRINCELY PAYCHECKS MERRILL EXECUTIVE VICE PRESIDENTS JOHN L STEFFENS DAVID H KOMANSKY AND HERBERT M ALLISON JR EACH RECEIVED 1993 CASH PAY OF 445 MILLION UP 27 29 AND 35 RESPECTIVELY FROM A YEAR EARLIER WITH RESTRICTED SHARES AND MERRILL OPTIONS THE TOTAL 1993 PAY PACKAGES OF MESSRS STEFFENS KOMANSKY AND ALLISON WERE VALUED AT JAN 26 AT ABOUT 62 MILLION 61 MILLION AND 61 MILLION RESPECTIVELY STEPHEN L HAMMERMAN VICE CHAIRMAN AND MERRILL'S GENERAL COUNSEL RECEIVED A 1993 PAY PACKAGE VALUED AT ABOUT 49 MILLION IN CASH RESTRICTED STOCK AND OPTIONS ON MERRILL SHARES THAT'S UP FROM ABOUT 40 MILLION IN 1992 MERRILL SAYS THE BASE SALARIES FOR ITS SENIOR EXECUTIVES RANGE FROM 7 TO 9 OF THEIR TOTAL COMPENSATION THE BALANCE OF THEIR PAY PACKAGES CASH BONUS AND LONGTERM EQUITYINCENTIVE COMPENSATION IS TIED DIRECTLY TO MERRILL'S EARNINGS PERFORMANCE AND RETURN ON EQUITY 9403150122 940315 TRACKING TRAVEL BY DANIEL PEARL LAWMAKERS ARE TRYING TO SPARK CRUISESHIP TRAVEL BETWEEN US MARKETS A BILL INTRODUCED IN CONGRESS IN FEBRUARY WOULD GIVE CRUISE OPERATORS TEMPORARY RELIEF FROM AN 1886 LAW THAT PERMITS ONLY USBUILT SHIPS WITH US CREWS TO CRUISE BETWEEN US PORTS DESPITE THE REQUIREMENT NO LARGE CRUISE SHIPS HAVE BEEN BUILT IN THIS COUNTRY FOR DECADES AND ONLY TWO ARE OPERATING BOTH WITHIN HAWAII CRUISE LINES SERVING US PORTS SIDESTEP THE REQUIREMENT FOR US SHIPS BY STOPPING IN FOREIGN PORTS SUCH AS NASSAU VANCOUVER OR ENSANADA MEXICO ALASKABOUND PASSENGERS OFTEN FLY TO SEATTLE AND IMMEDIATELY BOARD A BUS TO VANCOUVER WHERE THE SHIP DEPARTS THEY DON'T SPEND A DIME IN SEATTLE SAYS DEMOCRATIC REP JOLENE UNSOELD OF WASHINGTON SPONSOR OF THE LEGISLATION SEATTLE HAS TRIED TO GET AN EXEMPTION FROM THE USSHIP LAW BUT SHIPYARDS AND LABOR GROUPS HAVE BLOCKED EFFORTS TO WEAKEN IT THOSE GROUPS ARE HAPPIER WITH REP UNSOELD'S BILL WHICH WOULD LET CRUISE SHIPS USE FOREIGNBUILT SHIPS NOW IF THEY AGREED TO BUILD A SHIP IN THE US WITHIN THREE YEARS AND SEATTLE BOOSTERS HAVE GAINED THE SUPPORT OF OTHER PORT CITIES WHICH HOPE TO CREATE CRUISES SUCH AS BOSTON TO MIAMI HOUSTON TO TAMPA AND LOS ANGELES TO SAN FRANCISCO WHILE CRUISE LINES SAY THEY'RE INTERESTED IN THOSE MARKETS THEY'RE RELUCTANT TO ENTER CONTRACTS WITH SHIPYARDS THAT HAVE BEEN BUILDING NAVAL VESSELS I DON'T THINK US YARDS HAVE THE TECHNICAL SOPHISTICATION TO BUILD A MODERNDAY CRUISE VESSEL SAYS TIM GALLAGHER A SPOKESMAN FOR CARNIVAL CRUISE LINES IN MIAMI MARC FRAZER OF THE SEATTLEBASED NATIONAL CRUISE SHIP ALLIANCE WHICH IS TRYING TO DRUM UP SUPPORT FOR REP UNSOELD'S BILL CONCEDES THAT CRUISE LINES HAVE BEEN VERY QUIET ABOUT IT BUT HE PREDICTS HOTEL CHAINS AND OTHER NEW OPERATORS WILL STEP IN TO DEVELOP AN AMERICAN CRUISE MARKET THE FASTESTGROWING SECTOR OF THE CRUISE MARKET IS THREE TO FOURDAY CRUISES HE SAYS AN AIRLINE CANCELS A HALFEMPTY FLIGHT AND CITES WEATHER OR MECHANICAL PROBLEMS IS THE AIRLINE LYING TRANSPORTATION SECRETARY FEDERICO PENA IS AMONG THE MANY PASSENGERS WHO HAVE SUSPECTED SO BUT HAVEN'T BEEN ABLE TO PROVE IT MR PENA WHO TOOK SOME 150 COMMERCIAL FLIGHTS IN HIS FIRST YEAR AS A CABINET MEMBER SAYS FOUR FLIGHTS WERE CANCELED HE ASKED HIS STAFF TO INVESTIGATE WHETHER THE REAL REASONS WERE ECONOMIC IN ONE CASE CONTINENTAL AIRLINES CANCELED AN AFTERNOON FLIGHT FROM NEWARK TO WASHINGTON CITING MECHANICAL PROBLEMS AND COMBINED IT WITH A FLIGHT AN HOUR LATER A CHECK OF MAINTENANCE RECORDS ON FILE WITH THE FEDERAL AVIATION ADMINISTRATION SHOWED THERE WAS SOME SORT OF BROKEN FUEL GAUGE SAYS RICHARD MINTZ AN AIDE TO MR PENA BEFORE A FLIGHT FROM WASHINGTON TO ATLANTA DELTA AIR LINES GATE AGENTS TOLD PASSENGERS THEIR CONNECTION TO BIRMINGHAM ALA WOULD BE CANCELED BECAUSE ICE HAD CLOSED THE AIRPORT MR PENA SAYS HE CHECKED WITH THE FAA AND LEARNED THAT THE BIRMINGHAM AIRPORT WAS OPEN MR PENA WHO HITCHED A RIDE WITH A DELTA FLIGHT ATTENDANT WHO DROVE TO BIRMINGHAM CONCLUDED THAT DELTA KNEW IT COULD GET THE PLANE TO BIRMINGHAM BUT DIDN'T WANT IT TO BE STUCK THERE IF A STORM HIT A DELTA SPOKESWOMAN FRANCES CONNER SAYS DELTA CANCELED THE FLIGHT FOR MARGINAL WEATHER SHE ADDS WE TRY TO DEAL WITH PASSENGERS AS HONESTLY AS WE CAN FEDERAL OFFICIALS SAY THEY HAVE NEVER HAD ENOUGH EVIDENCE TO PROVE THAT AN AIRLINE USED WEATHER OR MECHANICAL PROBLEMS AS A RUSE TO CANCEL AN UNPROFITABLE FLIGHT BUT THE TRANSPORTATION DEPARTMENT HAS ASKED AIRLINES TO BE MORE SPECIFIC WITH PASSENGERS SAYS HOYT DECKER OF THE AGENCY'S CONSUMER AFFAIRS OFFICE CAN YOU IMAGINE AN AIRLINE TELLING YOU THEY'RE HAVING SOME KIND OF JOB ACTION HE SAYS USING A CORPORATE CARRENTAL ACCOUNT FOR PERSONAL TRAVEL MAY BE A BAD IDEA EVEN IF YOUR EMPLOYER DOESN'T MIND THESE DAYS MORE COMPANIES ARE NEGOTIATING CARRENTAL DEALS THAT ALLOW EMPLOYEES TO USE THE ACCOUNT FOR PERSONAL TRIPS THE NATIONAL BUSINESS TRAVEL ASSOCIATION SAYS IT ALLOWS THEM TO MAINTAIN ENOUGH VOLUME SO THEY CAN KEEP THE CORPORATE RATE SAYS EJ HEWITT PRESIDENT OF THE TRAVELMANAGER'S GROUP SOME EMPLOYEES LIKE THE EXPRESS SERVICE AND FREE UPGRADES THAT COME WITH CORPORATE ACCOUNTS BUT THE CORPORATE RATE CAN BE HIGHER THAN THE LEISURE RATE ESPECIALLY ON WEEKENDS AND IN CITIES WHERE COMPETITION HAS SPURRED SALES CARRENTAL FIRMS NOTE ALSO MANY EMPLOYERS THAT PICK UP INSURANCE FOR RENTED VEHICLES EXCLUDE PLEASURE TRIPS FROM THE COVERAGE HERTZ RESERVATION AGENTS SOMETIMES ASK CORPORATEACCOUNT TRAVELERS IS THIS BUSINESS OR PLEASURE THE COMPANY SAYS IT DOESN'T BLOCK LEISURE TRAVELERS FROM USING A CORPORATE RATE BUT JOE BRANCATELLI TRAVEL ADVISER TO TRAVEL HOLIDAY MAGAZINE SAYS HERTZ ONCE TOLD HIM HE COULDN'T USE THE CORPORATE RATE AND OFFERED HIM A LEISURE RATE THAT WAS LOWER THE INTERNATIONAL AIRLINE PASSENGERS ASSOCIATION CALLS CHINA THE MOST DANGEROUS AREA IN THE WORLD FOR AIRLINE PASSENGERS AND WARNS PEOPLE NOT TO FLY INTERNALLY THERE THE GROUP CITES INADEQUATE AIRTRAFFIC CONTROL AMONG OTHER CONCERNS OTHER DANGER SPOTS ACCORDING TO THE GROUP KOREA CENTRAL AFRICA THE ANDES AND THE FORMER SOVIET UNION FOR A FEW TRAFFICWEARY LOS ANGELENOS PUBLIC TRANSPORTATION MEANS HELICOPTERS AFTER JANUARY'S EARTHQUAKE HELIUSA A SIGHTSEEING COMPANY BEGAN A COMMUTING SERVICE BETWEEN LOS ANGELESAREA AIRPORTS FOR AS MUCH AS 180 A DAY IT'S MOSTLY ATTORNEYS AND PEOPLE IN THE MOVIE BUSINESS SAYS PRESIDENT NIGEL TURNER ADDING WE'RE TRYING TO GET A PAD IN MALIBU 9403150121 940315 EIGHT UTAH HOSPITALS TWO HEALTH GROUPS SETTLE WAGEFIXING SUIT WASHINGTON EIGHT UTAH HOSPITALS AND TWO HEALTH ORGANIZATIONS AGREED TO SETTLE A FEDERAL LAWSUIT CHARGING THEM WITH CONSPIRING TO KEEP NURSES' WAGES DOWN THE JUSTICE DEPARTMENT SAID THE HOSPITALS THE UTAH SOCIETY FOR HEALTHCARE HUMAN RESOURCES ADMINISTRATION AND THE UTAH HOSPITAL ASSOCIATION AGREED IN A PROPOSED CONSENT AGREEMENT NOT TO FIX NURSES' WAGES OR SHARE WAGE INFORMATION EXCEPT IN LIMITED CIRCUMSTANCES THE SOCIETY IS A PROFESSIONAL ASSOCIATION OF HOSPITAL HUMAN RESOURCE DIRECTORS THE HOSPITAL ASSOCIATION IS A TRADE GROUP THE HOSPITALS ALL IN SALT LAKE CITY ARE ST BENEDICT'S HOSPITAL IHC HOSPITAL INC HOLY CROSS HOSPITAL PIONEER VALLEY HOSPITAL INC LAKEVIEW HOSPITAL INC MOUNTAIN VIEW HOSPITAL INC BRIGHAM CITY COMMUNITY HOSPITAL INC AND HCA HEALTH SERVICES OF UTAH INC WHICH DOES BUSINESS AS ST MARK'S HOSPITAL 9403150120 940315 FOREIGN EXCHANGE DOLLAR HITS 3WEEK HIGH AGAINST YEN USJAPAN CELLULARPHONE PACT IS CITED BY GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR HIT A THREEWEEK HIGH VS THE YEN YESTERDAY FUELED BY OPTIMISM OVER A TRADE AGREEMENT THAT GIVES THE US NEWFOUND ACCESS TO JAPAN'S CELLULARPHONE MARKET THE MARK MEANWHILE DREW STRENGTH AGAINST ALMOST EVERY CURRENCY EXCEPT THE DOLLAR AS TRADERS SHRUGGED OFF A REGIONAL ELECTION DEFEAT SUNDAY OF CHANCELLOR HELMUT KOHL'S RULING PARTY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16900 MARKS UP FROM 16825 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10610 YEN UP FROM 105 YEN STERLING WAS TRADING AT 14960 DOWN FROM 15005 THE DOLLAR ALSO TRADED AT 14360 SWISS FRANCS UP FROM 14215 FRANCS LATE FRIDAY ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10618 YEN AND AT 16905 MARKS THE US AND JAPAN REACHED AN AGREEMENT SATURDAY IN THE LONGFESTERING DISPUTE OVER MOTOROLA INC'S ACCESS TO JAPAN'S CELLULARPHONE MARKET THE ACCORD WAS TOUTED BY WALTER MONDALE US AMBASSADOR TO JAPAN AS A MODEL FOR REVITALIZING THE COLLAPSED BILATERAL TRADE TALKS THE FAILURE OF THE US AND JAPAN TO REACH A TRADE AGREEMENT LAST MONTH SENT THE DOLLAR SPIRALING TO NEAR A POSTWORLD WAR II LOW AGAINST THE YEN ANY SIGN OF PROGRESS IN USJAPAN TRADE IS SEEN BY THE MARKET AS ALLEVIATING US PRESSURE FOR A STRONG YEN AS A TOOL TO ADDRESS JAPAN'S MOUNTAINOUS TRADE SURPLUS THERE IS A PERCEPTION THAT TRADE TENSIONS ARE RECEDING WHICH IN TURN WOULD LEAD TO A STRONGER DOLLAR AND A WEAKER YEN SAID BERND BECKER ASSISTANT VICE PRESIDENT AT BANK JULIUS BAER & CO IN NEW YORK THE DOLLAR ROSE TO AN INTRADAY HIGH OF 10645 YEN IN MIDAFTERNOON TRADING ITS HIGHEST LEVEL SINCE FEB 23 WHEN IT HIT 10655 YEN THE DOLLAR PUSHED THROUGH KEY RESISTANCE AT 10580 YEN AND THEN AGAIN AT 10610 YEN WHERE DOLLARSELL ORDERS BY JAPANESE EXPORTERS WERE SEEN PUTTING A CAP ON ADDITIONAL DOLLAR RISES ONCE THE SELL ORDERS WERE OUT OF THE MARKET THE DOLLAR KEPT MOVING UP AND MORE STOPLOSS ORDERS WERE HIT MR BECKER SAID STOPLOSS ORDERS ARE PLACED BY PARTICIPANTS WHO WANT TO BUY BACK DOLLARS TO CANCEL OUT OVERSOLD POSITIONS AS THE DOLLAR RISES THE DOLLAR THEN RETREATED SOMEWHAT ON PROFITTAKING MR BECKER SAID THE MARK MEANWHILE ROSE AGAINST MOST EUROPEAN CURRENCIES AS TRADERS REEVALUATED THE RESULTS OF AN ELECTION DEFEAT BY GERMANY'S RULING PARTY AS BEING LESS HARMFUL TO THE MARK THAN ANTICIPATED AS THEY SCURRIED TO GET OUT OF SHORTMARK POSITIONS THE SWISS FRANC IN PARTICULAR SUFFERED CHANCELLOR KOHL'S CHRISTIAN DEMOCRATIC UNION WON 36 OF THE VOTE ON SUNDAY IN STATE PARLIAMENTARY ELECTIONS IN LOWER SAXONY DOWN FROM 42 IN 1990 BUT TRADERS SAID THINGS COULD HAVE BEEN WORSE THE MARKET WAS VERY SHORT ON MARKS ON EXPECTATIONS THAT THE OUTCOME OF THE ELECTIONS WOULD BE VERY NEGATIVE FOR KOHL SAID DAVID DEROSA DIRECTOR OF FOREIGNEXCHANGE TRADING AT SWISS BANK CORP IN NEW YORK THE DEFEAT PROVED LESS DETRIMENTAL TO KOHL'S REELECTION PROSPECTS THAN PREVIOUSLY THOUGHT AND THAT LED TO A SCRAMBLE BY LARGE HEDGE FUNDS TO SELL SWISS FRANCS AND BUY MARKS MR DEROSA ADDED 9403150119 940315 BUSINESS BRIEF DIVERSIFIED COMMUNICATIONS LOSS IN 4TH PERIOD ESTIMATED STOCK PRICE PLUNGES BY 27 DIVERSIFIED COMMUNICATIONS INDUSTRIES LTD SAID IT EXPECTS TO REPORT LOSSES OF APPROXIMATELY 12 MILLION FOR THE 1993 FOURTH QUARTER AND 700000 FOR ALL OF 1993 NEWS OF THE SIZE OF THE DEFICITS HELPED PUSH DOWN THE PRICE OF THE COMPANY'S STOCK TO CLOSE AT 2 OFF 75 CENTS OR 27 IN TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE LAST WEEK THE WEST PALM BEACH FLA HOLDING COMPANY WITH INTERESTS IN TELECOMMUNICATIONS SAID IT WOULD LIKELY REPORT LOSSES FOR THE TWO PERIODS AS A RESULT OF ACCOUNTING ADJUSTMENTS UNCOVERED IN THE COMPANY'S YEAREND AUDIT YESTERDAY DIVERSIFIED COMMUNICATIONS SAID THE DEFICITS RELATED PRIMARILY TO ITS AMERICAN FIBER OPTICS UNIT AND STEMMED FROM THREE AREAS UNANTICIPATED LOSSES ON CONTRACTS INVOLVING CABLE OPERATIONS IN MIAMI OVERSTATEMENT OF REVENUE AND UNDERSTATEMENT OF EXPENSES BOTH IN THE FIRST THREE QUARTERS OF 1993 9403150118 940315 MARKETING & MEDIA CBS REESTABLISHES TV NETWORK DIVISION WITH LUND AS PRESIDENT NEW YORK CBS INC REINSTATED THE CBS TELEVISION NETWORK DIVISION IT ELIMINATED MORE THAN FIVE YEARS AGO AND NAMED PETER A LUND EXECUTIVE VICE PRESIDENT OF THE CBS BROADCAST GROUP AS PRESIDENT CBS BROADCAST GROUP PRESIDENT HOWARD STRINGER CITED THE NETWORK'S RECENT OLYMPICS RATINGS TRIUMPH THE SUCCESS OF DAVID LETTERMAN IN LATE NIGHT AND CBS'S CONTINUED PRIMETIME RATINGS LEADERSHIP AS REASONS FOR REVIVING THE NETWORK PRESIDENCY THE VALUE OF A NETWORK' HAS NEVER BEEN MORE OBVIOUS MR STRINGER SAID IN A MEMO TO HIS STAFF THE POST OF NETWORK PRESIDENT WAS ABOLISHED ALONG WITH THE DIVISION IN MAY 1988 AT THE CLOSE OF THE TELEVISION SEASON THAT SAW CBS DROP TO THIRD PLACE FROM SECOND CBS NETWORK OPERATIONS WERE AT THE TIME DIVIDED UP BETWEEN MARKETING AND AFFILIATERELATIONS EXECUTIVES MR LUND 53 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT OF THE CBS BROADCAST GROUP AND PRESIDENT OF CBS MARKETING SINCE OCTOBER 1990 BEFORE THAT HE WAS PRESIDENT OF MULTIMEDIA INC'S MULTIMEDIA ENTERTAINMENT MR LUND ALSO WORKED AT CBS FROM 1977 TO 1987 AT POSTS THAT INCLUDED PRESIDENT OF CBS SPORTS AND PRESIDENT OF THE CBS TELEVISION STATIONS CBS'S TELEVISIONSTATION AND RADIO DIVISIONS WILL CONTINUE TO REPORT TO MR LUND AS WILL THE SALES AND MARKETINGANDCOMMUNICATIONS DEPARTMENTS AFFILIATE RELATIONS WHICH HAD REPORTED TO MR STRINGER WILL REPORT TO MR LUND MR LUND WILL CONTINUE TO REPORT TO MR STRINGER 9403150117 940315 BUSINESS BRIEF FIBREBOARD REJECTS 4250ASHARE BID FROM FINANCIER SAYS FIRM ISN'T FOR SALE WALNUT CREEK CALIF FIBREBOARD CORP DECLARING THE COMPANY ISN'T FOR SALE DISCLOSED AND REJECTED AN UNSOLICITED 4250ASHARE BUYOUT BID FROM MINNESOTA FINANCIER CARL POHLAD THE COMPANY WHICH MAKES BUILDING PRODUCTS AND OWNS SKI RESORTS SAID THAT MR POHLAD MADE THE OFFER LATE FRIDAY IN A FAXED LETTER THE BID VALUES FIBREBOARD AT ABOUT 1785 MILLION FIBREBOARD'S FLAT REJECTION SEEMED TO MAKE AN IMPRESSION ON INVESTORS AFTER A DELAY IN THE START OF TRADING FIBREBOARD'S SHARES OPENED AT 38 A SHARE BUT EASED BACK TO CLOSE AT 37125 UP 2625 IN AMERICAN STOCK EXCHANGE TRADING MR POHLAD ALREADY OWNS A 68 STAKE IN FIBREBOARD AND SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING IN MIDDECEMBER THAT HE MIGHT SEEK CONTROL OF THE COMPANY HE DIDN'T RETURN PHONE CALLS YESTERDAY FIBREBOARD HAS BECOME AN ATTRACTIVE TARGET BECAUSE OF A FINANCIAL TURNAROUND AND A PENDING SETTLEMENT OF 3 BILLION IN ASBESTOS PERSONALINJURY CLAIMS THE COMPANY'S STOCK WAS TRADING AS LOW AS 6875 LAST YEAR BEFORE THE PROPOSED SETTLEMENT WITH THE COMPANY'S INSURERS WAS ANNOUNCED IN AUGUST THE SHARES HIT 35 AFTER MR POHLAD'S DECEMBER DISCLOSURE AND TOPPED 38 IN FEBRUARY AFTER USA TODAY COLUMNIST DAN DORFMAN REPORTED THAT A BID MAY BE IMMINENT JOHN ROACH FIBREBOARD'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY'S MANAGEMENT AND DIRECTORS STUDIED MR POHLAD'S OFFER AND CONCLUDED THAT IT FELL SHORT OF THE COMPANY'S TRUE VALUE OUR SHAREHOLDERS HAVE DONE WELL MR ROACH SAID IN PREPARED REMARKS BUT WE BELIEVE THERE ARE STILL SUBSTANTIAL GAINS TO COME IN LIGHT OF FIBREBOARD'S PROSPECTS AND THE VALUE OF ITS ASSETS FIBREBOARD OWNS MORE THAN 80000 ACRES OF SIERRA NEVADA TIMBERLAND AND PRODUCES A VARIETY OF BUILDING MATERIALS IT PURCHASED THE SIERRA SKI RANCH AT LAKE TAHOE LAST YEAR MR ROACH WHO JOINED THE COMPANY IN 1991 FROM MANVILLE CORP HELPED IMPROVE THE COMPANY'S FINANCES BY CUTTING COSTS AND SELLING MARGINAL ASSETS IN 1993 THE COMPANY EARNED 117 MILLION OR 262 A SHARE COMPARED WITH 94 MILLION OR 230 A SHARE IN 1992 SALES ROSE TO 2652 MILLION FROM 2397 MILLION MR ROACH SAID THAT ALL OF THE COMPANY'S OPERATIONS ARE NOW PROFITABLE WE ARE NOW AT A POINT WHERE WE CAN MAKE STRATEGIC ACQUISITIONS IN EXISTING OR RELATED BUSINESSES HE ADDED MR POHLAD 78 YEARS OLD AND LEADING AN INVESTOR GROUP CALLED CRP 3800 INC HAD REPORTED THAT IT PURCHASED 283000 SHARES BETWEEN NOV 12 AND DEC 17 AT PRICES RANGING FROM 2712 TO 3237 EACH 9403150115 940301 HUD'S BIG LEAP HOUSING POLICY AND THE HOMELESS' BY HOWARD HUSOCK WORD IS OUT THAT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT EMERGING CLEARLY UNDER SECRETARY HENRY CISNEROS AS THE MOST TRADITIONALLY LIBERAL OF THE CABINET AGENCIES IN THE CLINTON ADMINISTRATION WILL TERM HOMELESSNESS A CHRONIC PROBLEM OF SUCH SCALE AS TO CALL FOR A MAJOR INCREASE IN FEDERAL HOUSING ASSISTANCE A DRAFT OF THE REPORT PRIORITY HOME THE FEDERAL PLAN TO END HOMELESSNESS SAYS THAT WERE HUD TO BE SPENDING WHAT IT SHOULD ITS BUDGET WOULD RISE NO LESS THAN 15 BILLION A YEAR KEY TO SUCH PROJECTIONS IS THE ASSERTION THAT HOMELESSNESS EXISTS ON A FAR BROADER SCALE THAN PREVIOUS ADMINISTRATIONS HAVE ESTIMATED PREVIOUS ESTIMATES OF 600000 HOMELESS ON THE STREETS ON ANY GIVEN NIGHT ARE DWARFED BY A NEW FIGURE SEVEN MILLION AMERICANS ARE SAID TO HAVE BEEN HOMELESS AT SOME POINT IN THE LATE 1980S HOW CAN THERE BE SUCH A DISPARITY UNDERLYING THE NEW FIGURE IS THE VIEW THAT HOMELESSNESS SHOULD BE DEFINED EXPANSIVELY THAT IT MUST GO BEYOND THE MENTALLY ILL AND THE SUBSTANCE ABUSER LIVING ON THE STREET SO AS TO INCLUDE THOSE INDIVIDUALS AND FAMILIES WHO CAN BE SAID TO BE IN DANGER OF NOT HAVING THEIR OWN RESIDENCE THUS A SINGLE MOTHER SHARING AN APARTMENT WITH HER OWN MOTHER MIGHT BE CONSIDERED HOMELESS TWO FAMILIES DOUBLED UP WITH TWO OR THREE CHILDREN SHARING A BEDROOM SIMILARLY EXEMPLIFY THIS EXPANSIVE DEFINITION MOREOVER SOMEONE WITHOUT SUFFICIENT SAVINGS TO PAY SEVERAL MONTHS' RENT IF HE WERE TO LOSE HIS JOB CAN BE CLASSED AS BEING IN DANGER OF BECOMING HOMELESS THE BUDGETARY AND SOCIAL POLICY IMPLICATIONS OF THIS EXPANSIVE DEFINITION ARE PROFOUND THE TERM HOMELESSNESS MUST NOT BE ALLOWED TO MASK WHAT IS REALLY GOING ON A PROPOSAL FOR A MAJOR EXPANSION OF FEDERAL HOUSING ASSISTANCE THE EXPANSION IS NOT PREDICATED ON AN INCREASE IN THE NUMBERS OF THOSE ACTUALLY LIVING ON THE STREETS INSTEAD IT WOULD TARGET THOSE WHO MAY SIMPLY BE HOUSED AT LESS THAN HUD ACCOMMODATION STANDARDS AND THOSE AMONG THE WORKING POOR WHO LIVE NOW WITH SOME FORM OF HOUSING INSECURITY THERE IS GOOD REASON TO BE DUBIOUS THAT HOUSING SUBSIDIES WHETHER IN THE FORM OF NEW OR RENOVATED FEDERALLY SUBSIDIZED APARTMENT COMPLEXES OR IN THE FORM OF MORE WIDELY AVAILABLE HOUSING VOUCHERS ARE GOOD POLICY IN EITHER CASE HOUSING REFORMERS HAVE LONG RECOILED AT THE IDEA OF CHILDREN CROWDED INTO TENEMENTS OR WORSE CHILDREN SHARING BEDROOMS WITH PARENTS BUT OVERCROWDING CAN ALSO BE SEEN AS A WAY EXTENDED FAMILIES MARSHAL THEIR FINANCIAL RESOURCES AS PART OF THE EFFORT OF UPWARD MOBILITY HISTORICALLY IT HAS BEEN COMMON FOR POOR FAMILIES TO SHARE ACCOMMODATIONS WITH INLAWS AND GRANDPARENTS AS WELL AS TO TAKE IN BOARDERS IMMIGRANT FAMILIES TODAY CONTINUE THESE TRADITIONS IT MAY SEEM INSENSITIVE TO SUFFERING TO VIEW SUCH CROWDING AS BENEFICIAL IN THE LONG RUN BUT CONSIDER THE IMPLICATIONS OF THE ALTERNATIVES BOTH FOR THOSE ALREADY ON PUBLIC ASSISTANCE AND FOR THE WORKING POOR PROVIDING APARTMENTS OR HOUSING ASSISTANCE FOR SINGLE MOTHERS FOR INSTANCE MAY BE SEEN AS YET ANOTHER REWARD/INCENTIVE FOR OUTOFWEDLOCK BIRTHS JUST AS IMPORTANT PROVIDING SECTION 8 HOUSING CERTIFICATES TO POOR FAMILIES SO THEY CAN SCATTER TO AVAILABLE QUARTERS IN NONPOOR NEIGHBORHOODS UNDERMINES THE INCENTIVE STRUCTURE FOR THOSE FAMILIES WHO MUST STRIVE AND SAVE TO REACH THESE SAME NEIGHBORHOODS MOREOVER HOUSING SUBSIDIES CAN CREATE THEIR OWN ABUSES A JUNE 1993 CITY OF BOSTON STUDY ON SUBSIDIZED HOUSING/ABSENTEE LANDLORD ISSUES FOUND A WIDESPREAD COMMUNITY VIEW OF ABSENTEE LANDLORDS RENTING UNITS TO SUBSIDIZED TENANTS AT RENT LEVELS SUBSTANTIALLY HIGHER THAN MARKET RATES AND OF SUBSIDIZED TENANTS WHO WITHOUT THE FINANCIAL STAKE THAT ARISES FROM PAYING ONE'S OWN WAY WERE ACTING OUT AND DISRUPTING COMMUNITY LIFE IF IT HOPES TO AVOID BOTH COMMUNITY RESENTMENT AND A MAJOR NEW INFUSION OF FEDERAL SUBSIDY DOLLARS THE CLINTON ADMINISTRATION WOULD DO WELL TO CONSIDER ALTERNATIVES TO MAJOR NEW HOUSING CONSTRUCTION OR ASSISTANCE PROGRAMS FIRST THE ADMINISTRATION SHOULD STOP CONFLATING THE LEVELS OF THE TRULY HOMELESS WITH THOSE WHO ARE SIMPLY NOT HOUSED TO REFORM STANDARDS AT THE SAME TIME IT SHOULD CONSIDER WAYS OF INCREASING THE SUPPLY OF HOUSING FOR BOTH THE TROUBLED HOMELESS AND THOSE WHO HAVE DIFFICULTY AFFORDING THEIR OWN RESIDENCES SOCIETY HAS AN OBLIGATION TO HELP THOSE THE MENTALLY ILL THE DRUG AND ALCOHOL ABUSERS UNABLE TO COPE IF WE REJECT THE TRADITION OF LARGE INSTITUTIONS FOR THESE UNFORTUNATES WE CAN MOVE TOWARD THE EMERGING MODEL OF INEXPENSIVE SINGLEROOM OCCUPANCY HOTELS COMBINED WITH TREATMENT AND COUNSELING FACILITIES HUD CAN ENCOURAGE LOCAL JURISDICTIONS TO PERMIT CONSTRUCTION OF SUCH SROS IN APPROPRIATE LOCATIONS AND WITH LIMITED AMENITIES SO AS TO PERMIT PRIVATE BUILDERS TO PROVIDE THEM AT THE SAME TIME IT CAN USE ITS OFFICES TO SUGGEST WAYS TO INCREASE THE SUPPLY OF HABITABLE NONSUBSIDIZED HOUSING WITHIN POOR NEIGHBORHOODS FOR THOSE WHO HAVE DIFFICULTY AFFORDING THEIR OWN RESIDENCES LOCAL STANDARDS MIGHT ALLOW FOR MINIMALIST RENOVATION OF OLDER HOUSING AS THE ENTERPRISE FOUNDATION HAS PERSUADED BALTIMORE TO COUNTENANCE IN OTHER CASES IT MIGHT BE BETTER TO PERMIT DEMOLITION OF OLD DIFFICULTTORENOVATE APARTMENT COMPLEXES TO MAKE WAY FOR CHEAP AND UTILITARIAN REPLACEMENTS NEW YORK CITY FOR INSTANCE HAS SPENT MORE PER UNIT TO RENOVATE OLD APARTMENTS FOR SUBSIDIZED TENANTS THAN NEHEMIAH HOMES A PRIVATE BUILDER WITH CHURCHBASED FINANCING HAS SPENT TO BUILD NEW ROWHOUSES IN BROOKLYN AND THE BRONX FOR INDIVIDUAL PRIVATE OWNERS THIS IS NO TIME TO LET HOMELESSNESS BE USED AS A RALLYING CRY TO REVIVE EXPENSIVE AND COUNTERPRODUCTIVE POLICIES ESPECIALLY WHEN THERE ARE ALTERNATIVES AVAILABLE MR HUSOCK IS DIRECTOR OF CASE STUDIES AT HARVARD'S KENNEDY SCHOOL OF GOVERNMENT SEE RELATED LETTERS LETTERS TO THE EDITOR THE UNCOUNTED LEGIONS OF HOMELESS WSJ MARCH 15 1994 9403010072 YY94 MM03 9403150114 940315 WALL DATA TO MOVE HEADQUARTERS REDMOND WASH WALL DATA INC WILL MOVE ITS HEADQUARTERS TO KIRKLAND WASH FROM REDMOND WASH THIS SUMMER THE COMPANY SAID THE OWNER OF ITS CURRENT HEADQUARTERS SOLD THE PROPERTY TO A SHOPPING CENTER DEVELOPER THE SOFTWARE COMPANY SAID ITS NEW THREESTORY HEADQUARTERS WILL BE ABOUT DOUBLE ITS EXISTING SPACE 9403150113 940315 MARKETSCAN ANATOMY OF A FAD HOW CLEAR PRODUCTS WERE HOT AND THEN SUDDENLY WERE NOT BY KATHLEEN DEVENY STAFF REPORTER OF THE WALL STREET JOURNAL CLEAR PRODUCTS ARE GOING THE WAY OF OAT BRAN HAIR MOUSSE AND MINIFOODS MARKETING FADS THAT ENJOYED A FEW YEARS OF ALMOST HYSTERICAL POPULARITY AND THEN ALL BUT DISAPPEARED IN THE PAST FEW YEARS MARKETERS CREATED TRANSPARENT VERSIONS OF DOZENS OF PRODUCTS FROM COLAS AND DISHWASHING SOAPS TO BEER DEODORANT AND GASOLINE IN AN EFFORT TO PORTRAY THEM AS PURER MILDER AND MORE NATURAL BUT LIKE MOST MARKETING FADS CLEAR WAS UNDONE BECAUSE OF A PROLIFERATION OF METOO PRODUCTS AND PRODUCTS THAT STRETCHED THE ORIGINAL CONCEPT TOO FAR SATURDAY NIGHT LIVE EVEN SPOOFED THE TREND WITH A PARODY COMMERCIAL FOR CRYSTAL GRAVY YOU CAN SEE YOUR MEAT CLEAR IS DEAD SAYS LYNN DORNBLASER PUBLISHER OF NEW PRODUCT NEWS ADDS TOM PIRKO A BEVERAGE INDUSTRY CONSULTANT CLEAR WAS LAST YEAR'S COLOR DATA PROVIDED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE SUGGEST THE FUTURE FOR MANY CLEAR PRODUCTS IS MURKY SALES OF CLEARLY CANADIAN SOFT DRINKS FELL 357 IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS DURING THE 13 WEEKS ENDED JAN 2 SALES OF IVORY CLEAR DISHWASHING LIQUID DROPPED 273 WHILE SALES OF MENNEN LADY SPEED STICK CRYSTAL FELL 155 MILLER CLEAR A TRANSPARENT BEER IS ALREADY GONE CRYSTAL PEPSI THE MOST HYPED OF THE CLEAR PRODUCTS HAS SUSTAINED ITS GROWTH LARGELY BECAUSE OF HEAVY PROMOTIONS EVEN SO IT HAS FALLEN SHORT OF PEPSICO INC'S EXPECTATIONS A FEW OTHER CLEAR PRODUCTS SUCH AS BRISTOLMYERS SQUIBB CO'S BAN CLEAR DEODORANT AND WARNERLAMBERT CO'S CALADRYL CLEAR ANTIITCH MEDICATION CONTINUE TO GROW THE RISE AND FALL OF CLEAR PRODUCTS ILLUSTRATE HOW EVEN THE MOST SOPHISTICATED MARKETERS GET DRAWN INTO FADS IN MANY CASES COMPANIES SIMPLY MISTAKE FLEETING FASHIONS FOR LASTING SHIFTS IN CONSUMER PREFERENCES OTHER MARKETERS RECOGNIZE A FAD FOR WHAT IT IS BUT DON'T WANT TO LOSE CUSTOMERS TO RIVALS EVEN TEMPORARILY STILL OTHER COMPANIES TRY TO EXPLOIT FADS BY QUICKLY LAUNCHING PRODUCTS THAT DON'T REQUIRE LARGE INVESTMENTS INDEED THERE ARE RISKS TO IGNORING FADS AS COMPANIES THAT IGNORED SALSA AND GOURMET COFFEES DISCOVERED BOTH PROCTER & GAMBLE CO AND COLGATEPALMOLIVE CO INITIALLY SCOFFED AT CHURCH & DWIGHT CO'S ARM & HAMMER DENTAL CARE BAKING SODA TOOTHPASTE BUT CONSUMERS APPARENTLY LIKED THE SLIGHTLY SALTY TASTE AND GRITTY TEXTURE OF THE ARM & HAMMER PRODUCT BAKING SODA TOOTHPASTES NOW HAVE ANNUAL SALES OF NEARLY 300 MILLION AND BOTH BIG MARKETERS HAVE BELATEDLY CREATED BAKING SODA TOOTHPASTES ONE PROBLEM WITH FAD MARKETING IS THAT CONSUMERS' ATTENTION SPANS ARE SO UNPREDICTABLE TRADITIONAL METHODS OF MARKET RESEARCH INCLUDING FOCUS GROUPS CAN'T ACCURATELY ESTIMATE HOW LONG CONSUMERS WILL STICK WITH A NEW PRODUCT GIVE A NEW PRODUCT TO A GROUP OF CONSUMERS ASK THEM WHAT THEY THINK AND A FADDISH ITEM WILL ALWAYS APPEAR TO BE A WINNER SAYS GARY STIBEL A PRINCIPAL WITH NEW ENGLAND CONSULTING GROUP IN WESTPORT CONN HAND ANYBODY A HULAHOOP AND THEY'LL HAVE FUN WITH IT AT FIRST IN THE EARLY DAYS CLEAR PRODUCTS SEEMED MORE PROMISING THAN MANY MARKETING FADS USING THE ABSENCE OF COLOR TO CONJURE UP PURITY LIGHTNESS AND WHOLESOMENESS DOVETAILED WITH SEVERAL BROAD SHIFTS IN CONSUMER BEHAVIOR AGING BABY BOOMERS WERE MOVING FROM CONSPICUOUS CONSUMPTION TO ABSTINENCE FROM ALCOHOL TO SPARKLING WATER MEANWHILE ENVIRONMENTALLY CONSCIOUS CONSUMERS BEGAN GRAVITATING TOWARD PRODUCTS THAT CONTAINED FEWER HARSH OR UNNECESSARY INGREDIENTS WHEN CLEARLY CANADIAN BEVERAGE CORP BASED IN VANCOUVER BRITISH COLUMBIA BEGAN TESTING A NEW SOFT DRINK IN 1988 YOUNGER CONSUMERS LIKED THE CONCEPT OF A CLEAR SOFT DRINK CLEAR WAS EQUATED WITH NATURAL SAYS GLEN FOREMAN CHIEF OPERATING OFFICER OF CLEARLY CANADIAN IT REINFORCED THE IDEA THAT YOU GET WHAT YOU SEE IN THE NEXT FEW YEARS CONSUMER PRODUCTS COMPANIES LATCHED ONTO THE CLEAR CONCEPT COLGATEPALMOLIVE SPENT A DECADE AND 6 MILLION DEVELOPING A SENSITIVE SKIN VERSION OF ITS WELLKNOWN GREEN DISHWASHING LIQUID PALMOLIVE AFTER TESTING LIGHT BLUE AND YELLOW VERSIONS THE COMPANY FOUND THAT CONSUMERS OVERWHELMINGLY PREFERRED A CLEAR FORMULA BY THEN A COLGATE SPOKESMAN SAYS THE COMPANY WAS TRACKING THE SUCCESS OF BAN CLEAR DEODORANT ON THE WEST COAST AND RUSHED OUT A CLEAR DEODORANT OF ITS OWN LADY SPEED STICK CRYSTAL CLEAN BY 1992 THE TREND HAD BECOME A FAD COLGATE BROUGHT OUT A CLEAR VERSION OF ITS SOFTSOAP HAND SOAP A FEW MONTHS LATER PROCTER & GAMBLE LAUNCHED A CLEAR VERSION OF ITS WELLKNOWN IVORY DISHWASHING LIQUID THEN COORS BREWING CO BEGAN TESTING A CLEAR MALT BEVERAGE CALLED ZIMA CONSUMERS STARTED FILLING UP THEIR CARS WITH AMOCO CRYSTAL CLEAR ULTIMATE GASOLINE AND DENMAT CORP LAUNCHED ITS CLEAR REMBRANDT MOUTH REFRESHING RINSE MARKETING EXPERTS SAY MEDIA ATTENTION TO THE CLEAR PHENOMENON PUT MORE PRESSURE ON MARKETERS TO ACT I SAT IN MEETINGS WITH PEOPLE WHO SAID LET'S DO CLEAR BECAUSE CLEAR IS HOT' SAYS DOUG HALL PRESIDENT OF RICHARD SAUNDERS INTERNATIONAL A CINCINNATI FIRM THAT EVALUATES NEW PRODUCTS THE BEGINNING OF THE END OF CLEAR SOME MARKETING EXPERTS SAID WAS MARKED BY THE ARRIVAL OF SUCH PRODUCTS AS CLEAR BEER AND CLEAR GASOLINE THE APPEARANCE OF CLEAR PRODUCTS THAT DIDN'T FIT THE POSITIONING DEBASED THE ORIGINAL CONCEPT OF CLEAR SAYS JOHN QUELCH A MARKETING PROFESSOR AT HARVARD BUSINESS SCHOOL THESE ARE PARASITE PRODUCTS AT THE SAME TIME CONSUMERS BEGAN TO BALK AT PAYING HIGHER PRICES FOR PRODUCTS THAT ACTUALLY CLAIMED TO HAVE FEWER INGREDIENTS AND PRICE COMPETITION BETWEEN NEARLY INDISTINGUISHABLE RIVALS QUICKLY BEGAN TO CUT INTO SALES OF SOME PRODUCTS 9403150112 940315 TECHNOLOGY WARNERLAMBERT UNIT SETS PRIZE MORRIS PLAINS NJ WARNERLAMBERT CO'S PARKEDAVIS UNIT SAID IT WILL SPONSOR A NEW OLYMPIC PRIZE WHICH INCLUDES A 250000 CASH AWARD TO ENCOURAGE RESEARCH IN THE AREAS OF HUMAN MOVEMENT PHYSICAL EXERCISE AND SPORTS THE PRIZE WILL BE AWARDED EVERY TWO YEARS IN CONNECTION WITH THE SUMMER OR WINTER OLYMPIC GAMES BETWEEN 1996 AND 2000 THE FIRST AWARD WILL TAKE PLACE AT THE SUMMER OLYMPIC GAMES TO BE HELD IN ATLANTA IN 1996 PARKEDAVIS IS A MAKER AND MARKETER OF HEALTHCARE PRODUCTS WARNERLAMBERT IS A PHARMACEUTICAL AND CONSUMERPRODUCTS COMPANY 9403150111 940315 RETAILING AUDIO BOOK BOOM SOUNDS LIKE A TREND BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS PAUL RUSH BLAMES IT ALL ON A GRANDMOTHERLY SPY AND THE MISSING PIECE OF AUDIO TAPE AS HE CROSSED THE BLEAK WEST TEXAS PLAINS TO RESEARCH OILLEASE SITES ONE DAY IN LATE 1991 MR RUSH WAS LISTENING TO AN AUDIO TAPE OF A DOROTHY GILMAN SPY NOVEL THAT HE HAD BORROWED FROM A LIBRARY BUT THREEFOURTHS OF THE WAY THROUGH THE BOOK HE DISCOVERED THAT THE LAST TAPE WAS BROKEN FRUSTRATION TURNED TO ENTREPRENEURIAL INSIGHT IN NOVEMBER 1992 MR RUSH OPENED EARFUL OF BOOKS WHICH RENTS AND SELLS AUDIO BOOKS ONLY IN AUSTIN TEXAS NOW 15 MONTHS LATER MR RUSH OWNS THREE STORES IN TWO CITIES AND PLANS TO OPEN THREE MORE BY SEPTEMBER AND LIKE MANY AUDIOBOOK STORES EARFUL OF BOOKS CAREFULLY INSPECTS TAPES BEFORE THEY'RE RENTED OUT SOME RETAILERS AND PUBLISHERS BELIEVE AUDIO BOOKS FOR DECADES CONSIDERED A MINOR CATEGORY OF INTEREST ONLY TO THE BLIND AND AVAILABLE MOSTLY THROUGH LIBRARIES AND MAIL ORDER MAY BE POISED FOR A MASSMARKET BREAKTHROUGH RETAIL SALES HIT ABOUT 12 BILLION LAST YEAR ACCORDING TO A PUBLISHERS SURVEY FROM 250 MILLION FIVE YEARS AGO RENTAL FIGURES AREN'T AVAILABLE THE RULE OF THUMB FOR SALES USED TO BE THAT YOU COULDN'T GO BEYOND 10 OF HARDBACK SALES WITH A CEILING OF ABOUT 70000 COPIES SAYS PATRICIA JOHNSON PUBLISHER OF RANDOM HOUSE AUDIO BOOKS IT DIDN'T MATTER IF THE BOOK WAS A TWOMILLIONSELLER YOU COULDN'T GO BEYOND THAT BUT RECENTLY RANDOM HOUSE'S AUDIO VERSION OF MICHAEL CRICHTON'S JURASSIC PARK SOLD 175000 COPIES SIMON & SCHUSTER SAYS IT SOLD 288000 COPIES OF RUSH LIMBAUGH'S THE WAY THINGS OUGHT TO BE AND RANDOM HOUSE SAYS SUCH TITLES AS TOM PETERS'S THRIVING ON CHAOS ARE REACHING 25 OR MORE OF HARDBACK SALES THAT'S A CLEAR INDICATOR THE MARKET IS EXPANDING SAYS MS JOHNSON MAJOR BOOK PUBLISHERS HELPED BY RELEASING AUDIO VERSIONS AT THE SAME TIME AS HARDCOVERS TO TAKE ADVANTAGE OF THE BOOKS' MARKETING CAMPAIGNS BANTAM DOUBLEDAY DELL AUDIO RELEASED 32000 AUDIO COPIES OF JONATHAN KELLERMAN'S NEWLY PUBLISHED BAD LOVE SIMULTANEOUSLY WITH ITS FIRST PRINTING OF 256000 AND WITHIN THE PAST TWO YEARS AUDIOBOOK DISTRIBUTORS PERSUADED MASS MERCHANDISERS SUCH AS TARGET KMART INC AND WAREHOUSE CLUBS TO CARRY AUDIO VERSIONS OF BESTSELLERS CONVINCING THEM THAT SALES VOLUME WOULD JUSTIFY THE EFFORT THERE ARE NOW SOME 120 AUDIOBOOK SPECIALTY STORES COMPARED WITH ABOUT 25 A YEAR AGO ACCORDING TO THE AUDIO PUBLISHERS ASSOCIATION MR RUSH'S EARFUL OF BOOKS STORES EACH CARRY ABOUT 7000 AUDIO TITLES HALF OF THEM ABRIDGED SOLD AT THE 100 MARKUP STANDARD IN THE INDUSTRY ABRIDGEMENTS CAN SELL FOR BETWEEN 10 AND 24 UNABRIDGED TITLES FOR BETWEEN 30 AND 80 RENTALS ACCOUNT FOR ABOUT HALF THE REVENUE WE CARRY EVERYTHING A GOOD BOOKSTORE WOULD CARRY ONLY ON TAPE SAYS MR RUSH HE ADVERTISES HEAVILY ESPECIALLY ON RADIO TALK SHOWS AND SAYS MARKETING ACCOUNTS FOR A SIGNIFICANT PORTION OF THE 300000 TO 350000 IT COSTS TO OPEN A STORE TAPES TYPICALLY LAST 25 TO 30 RENTALS FEWER IN THE SUMMER WHEN CUSTOMERS ARE APT TO LEAVE THEM IN HOT CARS AUDIO BOOKS APPEAL TO BOTH HARDCORE READERS WHO DON'T HAVE TIME TO READ BOOKS AND TO NONREADERS WHO SEE THEM AS SECONDARY ENTERTAINMENT AUDIO BOOKS ARE ONE FORM OF ENTERTAINMENT BEST USED WHILE DOING SOMETHING ELSE SAYS JENNY FROST PUBLISHER OF BANTAM DOUBLEDAY DELL AUDIO RICH SHELTON AN ARMY RESERVE CAPTAIN ABSENTLY LISTENS TO JRR TOLKIEN'S LORD OF THE RINGS AS HE WORKS ON HIS COMPUTER DEE WHITTLESEY A PHYSICIAN STARTS HER DAY BY PLAYING MOTIVATIONAL TAPES AS SHE DRESSES AND HEIDI WILLIAMS A HOMEMAKER TIRED OF TELEVISION RELAXES WITH PERSONALGROWTH TAPES AFTER PUTTING HER FOURYEAROLD DAUGHTER TO BED AS THE MARKET FOR AUDIO BOOKS EXPANDS AUDIO BOOKSTORE ENTREPRENEURS BELIEVE FANS OF AUDIO BOOKS WILL BECOME FRUSTRATED WITH MASS MERCHANDISERS' LIMITED SELECTION WHICH IS TYPICALLY FEWER THAN A TENTH OF THE 3000 TO 7000 TITLES OFFERED BY AUDIO BOOKSTORES BOOKSELLING COMPETITORS POINT OUT THAT AUDIO BOOKSTORES REPRESENT LESS THAN 5 OF THE AUDIOBOOK MARKET AND QUESTION WHETHER AUDIO BOOKS HAVE ENOUGH MASSMARKET APPEAL THEY POINT OUT THAT ONLY 17 OF US HOUSEHOLDS BOUGHT OR LISTENED TO AN AUDIO BOOK LAST YEAR ACCORDING TO A PUBLISHERS SURVEY AND BLOCKBUSTER ENTERTAINMENT CORP BAILED OUT OF AN AUDIOBOOK EXPERIMENT AT ITS VIDEO STORES LAST YEAR AFTER LACKLUSTER RESULTS MR RUSH SEES A LIMITED MARKET WELLEDUCATED HIGHINCOME PEOPLE WHO ARE VORACIOUS READERS AND LIVE IN CITIES WITH POOR PUBLIC TRANSPORTATION THAT'S WHY WE'RE VERY SELECTIVE ABOUT THE MARKETS WE GO INTO HE SAYS BUT MS FROST SEES A LARGE POTENTIAL MARKET AMONG NONREADERS ONLY 6 OF THE COUNTRY GOES INTO BOOKSTORES ON A REGULAR BASIS SHE SAYS IF PEOPLE WHO DON'T GENERALLY READ BOOKS FIND AUDIO BOOKS SOMETHING THEY WANT ON A REGULAR BASIS THERE'S A HUGE POTENTIAL CONSUMER BASE OUT THERE AND TERRY LIPELT A VICE PRESIDENT FOR REZOUND INTERNATIONAL INC OF MINNEAPOLIS SAYS HIS COMPANY IS SUCCEEDING IN THE MASS MARKET REZOUND WHICH RENTS PRIMARILY ABRIDGED BOOKS AT LOW PRICES HAS PLACED COUNTERS IN 2000 VIDEO STORES GROCERIES GAS STATIONS CONVENIENCE STORES AND OTHER OUTLETS IN THE PAST TWO YEARS WE'RE GOING AFTER THE CUSTOMER WHO'S SEEKING A RELATIVELY SHORT SPAN OF ENTERTAINMENT HE SAYS AUDIO STORES WILL GET LITTLE HELP FROM BOOK PUBLISHERS WHO DO VERY LITTLE PROMOTION SAYS ED RICHARDS OWNER OF BESTSELLER AUDIO BOOKS OF SCOTTSDALE ARIZ HE AND OTHERS SEE GROWTH IN THE RENTAL MARKET BOTH UNABRIDGED BOOKS RUNNING TO 10 TAPES OR MORE AND ABRIDGEMENTS CAN OFTEN BE RENTED FOR 1 OR LESS A DAY AUDIO BOOKSTORES MAY FACE THEIR TOUGHEST CHALLENGE FROM BOOK/MUSIC/VIDEO SUPERSTORES LIKE THE ONES OPERATED BY BARNES & NOBLE INC AND KMART'S BORDERS INC DIVISION BOTH OFFER 2000 TO 3000 AUDIO TITLES BARNES & NOBLE LIKE SOME AUDIO BOOKSTORES LETS CUSTOMERS SAMPLE TOP TITLES IN TWOMINUTE SEGMENTS WITH CLIFFHANGER ENDINGS BORDERS IS REVAMPING ITS AUDIO DIVISION TO PROVIDE MORE TITLES AND MORE PROMINENT DISPLAY BUT BOTH SAY THEY WON'T ENTER THE RENTAL MARKET ENTREPRENEURS SUCH AS MR RUSH ARE HURRYING TO ESTABLISH THEMSELVES WE WANT TO BE THE LARGEST AUDIOBOOK SELLER AND RENTER IN OUR TERRITORY SO THAT IF WE GET A NATIONAL COMPETITOR WE CAN COMPETE OR BE ON THEIR ACQUISITION LIST HE SAYS OTHERS SUCH AS ROBIN K SMITH COOWNER OF BOOKEARS INC IN ATLANTA AREN'T WORRIED ABOUT ALTERNATIVE RENTAL COMPETITION IT'S NOT LIKE BLOCKBUSTER WHERE YOU JUST RING IT UP YOU HAVE TO BE ABLE TO TALK ABOUT BOOKS ALL DAY LONG SAYS MS SMITH NOW THAT WE'RE INTO IT AND CAN SEE WHAT IT TAKES WE DON'T SEE THEM AS A THREAT 9403150110 940315 WHO'S NEWS STRATEGIST FOR IBM MULTIMEDIA EFFORT QUITS TAKES NEW POST AT BLOCKBUSTER BY BART ZIEGLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A TOP STRATEGIST IN INTERNATIONAL BUSINESS MACHINES CORP'S MULTIMEDIA EFFORT RESIGNED TO JOIN THE CORPORATE PARTNER HE HAD RECRUITED TO WORK WITH IBMBLOCKBUSTER ENTERTAINMENT CORP ROBERT L CARBERRY WHO SOUGHT OUT NEW VENTURES AS PRESIDENT OF IBM'S FIREWORKS PARTNERS MULTIMEDIA UNIT QUIT AFTER 30 YEARS AT IBM TO JOIN THE VIDEORENTAL CHAIN AS VICE PRESIDENT OF TECHNOLOGY A NEW POST BLOCKBUSTER HAS AGREED TO BE ACQUIRED BY VIACOM INC AND THERE HAS BEEN SPECULATION THE COMPANY WILL PUSH VIACOM TO SWEETEN THE TERMS MR CARBERRY WHO WILL WORK HIS LAST DAY AT IBM TODAY SAID HE IS UNCONCERNED ABOUT THE UNCERTAINTIES SURROUNDING THE VIACOM DEAL BLOCKBUSTER HE SAID WILL NEED HIS SKILLS REGARDLESS OF WHETHER THE MERGER GOES THROUGH AS THE COMPANY CONTENDS WITH VIDEOONDEMAND SYSTEMS PLANNED BY CABLETV AND PHONE COMPANIES AT BLOCKBUSTER FORT LAUDERDALE FLA MR CARBERRY AGE 51 WILL OVERSEE AN EFFORT HE HELPED ESTABLISH WHILE AT IBM THE JOINT VENTURE WITH BLOCKBUSTER WOULD ALLOW THE COMPANY TO CREATE MUSIC COMPACT DISKS IN ITS STORES ON CUSTOMER DEMAND RATHER THAN KEEPING ALL TITLES IN STOCK THEY CERTAINLY HAVE A STRONG NEED TO DETERMINE HOW TO APPLY TECHNOLOGY TO THEIR MARKETPLACE MR CARBERRY SAID BUT MR CARBERRY'S RESIGNATION AT IBM ALSO FOLLOWS WHAT SOME OBSERVERS SAID HAS BEEN AN UNCOMFORTABLE DIVISION OF MULTIMEDIA OVERSIGHT BETWEEN MR CARBERRY AND PAUL M LOFTUS MR LOFTUS HAD BEEN PROMOTED TO ANOTHER TOP POST LAST YEAR AND THEIR SEPARATE OPERATIONS AT TIMES OVERLAPPED WITH MR CARBERRY MOVING ON HIS JOB WON'T BE FILLED AND MR LOFTUS WILL ASSUME OVERSIGHT OF FIREWORK PARTNERS WHICH IS BEING COMBINED WITH THE UNIT MR LOFTUS ALREADY RUNS THE MULTIMEDIA SYSTEMS GROUP AT FIREWORKS PARTNERS MR CARBERRY'S MAIN DUTIES ENTAILED IDENTIFYING SMALL COMPANIES AND JOINT VENTURES THAT WOULD MAKE PROMISING MULTIMEDIA INVESTMENTS FOR IBM BUT SOME EXECUTIVES CLOSE TO IBM SAID HE WASN'T AS GOOD AT PRODUCING FIRM DEALS AND THAT HE SOMETIMES VEERED INTO INTERACTIVE TELEVISION MR LOFTUS'S AREA AN IBM SPOKESMAN HOWEVER EMPHASIZED THAT MR CARBERRY'S CHOICE TO LEAVE WAS HIS OWN AND SAID THE CONSOLIDATION OF FIREWORKS INTO THE OTHER MULTIMEDIA GROUP HAD ALREADY BEEN PLANNED ANOTHER FACTOR ENTERED INTO MR CARBERRY'S DEPARTURE ACCORDING TO INDUSTRY EXECUTIVES JEROME B YORK NAMED IBM'S CHIEF FINANCIAL OFFICER LAST YEAR PLACED STRINGENT RESTRICTIONS ON MR CARBERRY'S ABILITY TO INVEST IN OUTSIDE VENTURES BLOCKBUSTER IN CONTRAST IS CASH RICH JAMES A CANNAVINO IBM'S TOP STRATEGY EXECUTIVE WILL SERVE AS ACTING PRESIDENT OF THE NEWLY COMBINED GROUP IN AN ADDRESS TO EMPLOYEES ANNOUNCING THE CHANGES YESTERDAY MR CANNAVINO SAID HE WOULD TAKE A MORE ACTIVE ROLE IN OVERSEEING MULTIMEDIA STRATEGY BECAUSE HE BELIEVES THE AREA IS CRUCIAL FOR IBM ACCORDING TO EMPLOYEES WHO HEARD THE TALK MR CARBERRY IS THE SECOND HIGHLEVEL MULTIMEDIA EXECUTIVE TO DEPART IBM IN A YEAR LUCIE FJELDSTAD RESIGNED LAST YEAR TO RUN HER OWN CONSULTING FIRM FRUSTRATED BY IBM'S MUDDLED EFFORTS IN MULTIMEDIA WITH DIFFERENT PRODUCT GROUPS PROMOTING DIFFERENT STRATEGIES OVERCOMING THAT CONFLICT IS A KEY CHALLENGE THAT MR CARBERRY LEAVES BEHIND 9403150109 940315 INTERNATIONAL US JAPAN DIFFER OVER SIGNIFICANCE OF CELLULAR PACT AS TRADETALK MODEL BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A RECENT USJAPAN CELLULARTELEPHONE AGREEMENT HAS US OFFICIALS CONVINCED THEY'VE HIT ON A MODEL FOR OTHER TRADE DISPUTES BUT JAPANESE OFFICIALS NOW THAT THE DEAL HAS BEEN STRUCK ARE BEGINNING TO GROUSE THAT THE AMERICANS ARE OVERSTATING ITS SIGNIFICANCE THEY CONTEND THE CELLULAR ARRANGEMENT IS A ONESHOT AGREEMENT THAT'S UNLIKELY TO BE REPEATED I DON'T THINK THE AGREEMENT CAN BE A MODEL FOR OTHER INDUSTRIES SUCH AS AUTOS AND AUTO PARTS SAID ONE JAPANESE GOVERNMENT OFFICIAL IN THE CELLULARPHONE AGREEMENT REACHED ON SATURDAY JAPAN AGREED TO TAKE MEASURES DESIGNED TO IMPROVE MOTOROLA INC'S ACCESS TO A KEY JAPANESE TELEPHONE MARKET US OFFICIALS HAVE TOUTED THE DEAL AS A PRIME EXAMPLE OF THEIR RESULTSORIENTED TRADE POLICY NOTING THE EXCEPTIONAL DETAIL WITH WHICH THE PLAN SPELLS OUT ACTIONS JAPAN MUST TAKE EQUALLY IMPORTANT IN THE VIEW OF BOTH US AND MOTOROLA OFFICIALS WAS THE PERSONAL INVOLVEMENT OF US AMBASSADOR WALTER MONDALE AND HIGHLEVEL JAPANESE POLITICIANS INCLUDING PRIME MINISTER MORIHIRO HOSOKAWA AND ICHIRO OZAWA A POWERFUL LEGISLATOR IN JAPAN'S RULING COALITION ONCE THE US THREATENED SANCTIONS IN THE CASE ON FEB 15 MR MONDALE MET SEVERAL TIMES WITH JAPANESE POLITICIANS IN ORDER TO JUMPSTART THE PREVIOUSLY STALLED NEGOTIATIONS GIVEN AMBASSADOR MONDALE'S PRESTIGE IN JAPAN GETTING HIM INVOLVED WAS REALLY CRITICAL SAID ROBERT ORR MOTOROLA'S TOKYO DIRECTOR OF GOVERNMENT RELATIONS WITHOUT HIS INVOLVEMENT WE WOULDN'T HAVE GOTTEN WHAT WE GOT AND THE PROCESS WOULDN'T HAVE BEEN ACCELERATED AS IT WAS AT A NEWS CONFERENCE YESTERDAY MR MONDALE SAID THE US COULD APPLY SEVERAL LESSONS FROM THE CELLULAR NEGOTIATIONS IN THE STALLED USJAPAN FRAMEWORK TALKS WHICH FELL APART IN MIDFEBRUARY FOR INSTANCE HE STRESSED THE IMPORTANCE OF INVOLVING HIGH JAPANESE OFFICIALS WHO COULD INSTRUCT BUREAUCRATS TO GET IT DONE MR MONDALE ALSO SUGGESTED THE US WOULD CONTINUE TO PURSUE CAREFULLY DEFINED AGREEMENTS THAT CAN'T BE FINESSED WE SAT DOWN AND SOUGHT TO REACH A PRACTICAL AGREEMENT THAT WORKED HE SAID THERE WAS A REFRESHING ABSENCE OF STERILE DEBATING SOME JAPANESE OFFICIALS MONDAY HOWEVER WERE INSISTING THAT SUCH US TACTICS WON'T WORK AGAIN THE JAPANESE GOVERNMENT WAS ABLE TO SETTLE THE CELLULAR CASE EASILY BECAUSE IT WAS SIMPLY A MATTER OF CORRECTING GOVERNMENT REGULATIONS SAID NOBORU HATAKEYAMA A FORMER VICE MINISTER AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY THE RESOLUTION OF THE CELLULAR ISSUE HAS NO BEARING ON TRADE DISPUTES INVOLVING AUTOS OR AUTO PARTS MR HATAKEYAMA SAID ONE IS A REGULATORY MATTER WHILE THE OTHER IS A NONREGULATORY MATTER BEST LEFT TO THE PRIVATE SECTOR STILL THERE ARE SIGNS THAT JAPANESE OFFICIALS MIGHT BE LAYING THE GROUNDWORK FOR FURTHER HIGHLEVEL TRADE DISCUSSIONS WITH US OFFICIALS A SENIOR FOREIGN MINISTRY BUREAUCRAT IS VISITING WASHINGTON THIS WEEK ALTHOUGH OSTENSIBLY FOR NONTRADERELATED PURPOSES AND OTHER JAPANESE OFFICIALS EXPECT MR OZAWA HIMSELF TO TRAVEL TO WASHINGTON AS EARLY AS NEXT WEEK ALTHOUGH OFFICIALS SAID THEY DIDN'T KNOW IF MR OZAWA WOULD SCHEDULE MEETINGS WITH US ADMINISTRATION OR CONGRESSIONAL LEADERS THE JAPANESE POLITICIAN HAS BROKERED OTHER TROUBLESOME BILATERAL ISSUES INCLUDING AN EARLIER INCARNATION OF THE CELLULAR DISPUTE 9403150108 940315 EURO DISNEY RESCUE PACKAGE WINS APPROVAL PLAN CALLS FOR US AFFILIATE TO SPEND 750 MILLION CONCESSIONS BY BANKS BY BRIAN COLEMAN AND THOMAS R KING STAFF REPORTERS OF THE WALL STREET JOURNAL WALT DISNEY CO AGREED TO SPEND ABOUT 750 MILLION TO BAIL OUT ITS 49OWNED EURO DISNEY SCA AFFILIATE APPARENTLY ENDING THE THREAT THAT THE GATES OF THE TROUBLED MAGIC KINGDOM IN FRANCE WOULD CLOSE FOREVER A PRELIMINARY DEAL STRUCK WITH REPRESENTATIVES OF EURO DISNEY'S LEAD BANKS WILL CUT THE PARK'S DEBT IN HALF AND IS AIMED AT MAKING EURO DISNEY PROFITABLE IN ITS FISCAL YEAR ENDING SEPT 30 1995 FAR EARLIER THAN MANY ANALYSTS HAD EXPECTED THE BANKS WOULD KICK IN ABOUT 500 MILLION AND MAKE OTHER CONCESSIONS THE PLAN SUBSTANTIALLY INCREASES DISNEY'S FINANCIAL TIES TO THE PARK ITS INITIAL INVESTMENT IN EURO DISNEY WAS JUST 160 MILLION THE RESCUE PACKAGE WAS SETTLED JUST MINUTES BEFORE THE START OF EURO DISNEY'S ANNUAL MEETING AFTER TALKS OVER THE WEEKEND BY DISNEY EURO DISNEY AND A BANK STEERING COMMITTEE HEADED BY BANQUE NATIONALE DE PARIS AND BANQUE INDOSUEZ FOLLOWING MONTHS OF SOMETIMES CONTENTIOUS NEGOTIATIONS AND WORKING AGAINST A DISNEYIMPOSED DEADLINE OF MARCH 31 THE PARTIES AGREED TO A PACKAGE SIMILAR TO ONE PROPOSED BY DISNEY LAST FALL BUT REJECTED AT THE TIME BY THE BANKS THE PLAN CALLS FOR A RIGHTS OFFERING OF SIX BILLION FRANCS OR ABOUT 102 BILLION SUCH AN OFFERING CONSISTS OF RIGHTS TO PURCHASE SHARES USUALLY AT BELOWMARKET PRICES TO EXISTING SHAREHOLDERS IN THE SAME PROPORTION AS THEIR PRESENT OWNERSHIP DISNEY WILL SPEND THREE BILLION FRANCS OR ABOUT 508 MILLION TO BUY 49 OF THE OFFERING THE COMPANY ALSO AGREED TO BUY CERTAIN EURO DISNEY PARK ASSETS FOR 14 BILLION FRANCS OR ABOUT 240 MILLION AND LEASE THEM BACK ON TERMS FAVORABLE TO EURO DISNEY THE PLAN WOULD HALVE EURO DISNEY'S DEBT TO ABOUT 10 BILLION FRANCS OR 169 BILLION FROM THE CURRENT 20 BILLION FRANCS THE BANKS AGREED TO FORGIVE 18 MONTHS OF INTEREST PAYMENTS ON THE DEBT AND WILL DEFER ALL PRINCIPAL PAYMENTS FOR THREE YEARS ANALYSTS ESTIMATED THAT THE ELIMINATION OF THE INTEREST PAYMENTS WILL SAVE EURO DISNEY ABOUT 19 BILLION FRANCS THE BANKS ALSO WILL UNDERWRITE THE REMAINING 51 OF THE RIGHTS OFFERING THAT DISNEY ISN'T BUYING THE OFFERING IS STRUCTURED TO MAINTAIN DISNEY'S EXISTING OWNERSHIP INTEREST IN EURO DISNEY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DISNEY SHARES FELL 1125 APIECE TO 45875 DESPITE THE ANNOUNCEMENT OF THE RESCUE PLAN EURO DISNEY'S SHARES FELL 79 TO 335 FRANCS A SHARE ON THE PARIS STOCK EXCHANGE ANALYSTS ESTIMATED THAT THE RIGHTS OFFERING COULD EVENTUALLY SWAMP THE MARKET WITH AS MANY AS 700 MILLION NEW EURO DISNEY SHARES EURO DISNEYLAND OPENED IN APRIL 1992 DESPITE HITTING ITS ATTENDANCE TARGETS IT IMMEDIATELY BEGAN BLEEDING CASH AS STRATEGIC AND FINANCIAL MISSTEPS RESULTED IN LOWERTHANEXPECTED REVENUE ON TOP OF THOSE PROBLEMS THE PARK FOUND ITSELF HOLDING ONTO A LARGE PORTFOLIO OF REAL ESTATE IN PARTICULAR HOTELS AS THE FRENCH PROPERTY MARKET COLLAPSED FROM EXCESS CAPACITY AND HIGH INTEREST RATES THROUGH DEC 31 EURO DISNEY HAD POSTED A CUMULATIVE LOSS OF 604 BILLION FRANCS THIS WILL ENSURE THAT THIS RESORT WHICH HAS BEEN THE BESTRECEIVED PARK EVER IN EUROPE WILL OPERATE ON A SOUND FINANCIAL BASIS AS WELL SAID DISNEY CHAIRMAN MICHAEL EISNER WHO CALLED THE RESTRUCTURING PLAN FAIR AND ECONOMICALLY SENSIBLE THE AGREEMENT ENDORSED BY EURO DISNEY'S LEAD BANKS NOW MUST BE ACCEPTED BY ALL 63 CREDITOR BANKS AND THE PUBLIC SHAREHOLDERS AS PART OF THE PACKAGE DISNEY SAID IT WOULD ELIMINATE FOR FIVE YEARS THE LUCRATIVE MANAGEMENT FEES AND ROYALTIES IT RECEIVES ON THE SALE OF TICKETS AND MERCHANDISE THE ROYALTIES WILL BE REINTRODUCED AT LOWER LEVELS GRADUALLY OVER AN UNSPECIFIED PERIOD OF TIME DISNEY WILL STILL RECEIVE AN INCENTIVE FEE BASED ON ANY PROFITS MADE BY THE EURO DISNEY RESORT WHICH COST 368 BILLION TO BUILD ANALYSTS SAID THAT DISNEY WITH ITS MASSIVE CASHGENERATING POWERS WON'T HAVE MUCH TROUBLE ABSORBING THE BLOW OF ITS 750 MILLION OUTLAY IT WILL HAVE AN IMPACT ON THEIR CASH FLOW BUT THE IMPACT ON THEIR INCOME STATEMENT SHOULD BE NEGLIGIBLE IN OUR VIEW SAID JILL KRUTICK AN ANALYST AT SALOMON BROTHERS INC IN NEW YORK SHE SAID SHE VIEWED THE RESTRUCTURING AS A POSITIVE FOR DISNEY STOCK ADDING THAT SALOMON IS MAINTAINING ITS BUY RECOMMENDATION ON DISNEY SHARES EVEN WITH THE RESCUE PACT EURO DISNEY SAID IT EXPECTS LOSSES TO CONTINUE IN LAST HALF OF FISCAL 1994 UNDER EQUITY ACCOUNTING RULES DISNEY'S PLANNED NEW INVESTMENT IN EURO DISNEY WILL OBLIGATE THE US COMPANY TO INCLUDE ITS 49 SHARE OF THE LOSSES IN ITS FINANCIAL STATEMENTS DISNEY STOPPED RECORDING EURO DISNEY LOSSES LAST NOVEMBER AFTER WRITING DOWN ITS INVESTMENT IN EURO DISNEY TO ZERO DISNEY AND THE BANKS SAID THAT PRIOR TO THE RIGHTS OFFERING THERE WILL BE A REDUCTION IN THE CAPITAL OF EURO DISNEY BY REDUCING THE PAR VALUE OF THE COMPANY'S SHARES WHILE THE PRICE OF THE OFFERING WILL BE SET LATER THE PARTIES SAID IT IS CURRENTLY ESTIMATED TO BE CLOSE TO THE PRESENT PAR VALUE OF EURO DISNEY STOCK OR ABOUT 10 FRANCS A SHARE THE NEW AGREEMENT ALSO CALLS FOR THE BANKS AND DISNEY TO SUBSCRIBE TO BONDS WITH 10YEAR WARRANTS TO PURCHASE EURO DISNEY SHARES AT 40 FRANCS A SHARE THAT COULD RAISE UP TO 28 BILLION FRANCS FOR THE RESORT COMPANY DISNEY ALSO AGREED TO ARRANGE FOR A 11 BILLION FRANC STANDBY LINE OF CREDIT AT MARKET RATES TO PROVIDE FOR EURO DISNEY'S LIQUIDITY AT LEAST ONE OFFICIAL FAMILIAR WITH THE RESTRUCTURING TALKS SAID HE BELIEVED DISNEY MAY HAVE CUT THE BETTER DEAL SINCE IT IS SACRIFICING ROYALTIES AND FEES THAT WOULD HAVE DRIED UP IF THE PARK HAD CLOSED OTHER ANALYSTS HOWEVER ARGUED THAT THE PARENT COMPANY WILL BE GIVING UP MONEY IT PREVIOUSLY PLANNED ON RECEIVING JUST AS THE BANKS ARE DOING ALSO SOME ANALYSTS ARGUED BY PUTTING OFF ITS ROYALTIES FOR SEVERAL YEARS WALT DISNEY IS SHOWING ITS COMMITMENT TO THE PARK'S LONGTERM SUCCESS IF THE MARKETS ARE STRONG ENOUGH TO ABSORB THREE BILLION FRANCS OF NEW EQUITIES THEN IT IS A GOOD LONGTERM FIX SAID JACK HERSCH OF MJ WHITMAN IN NEW YORK BUT OFFICIALS CLOSE TO THE TALKS SAY THE REAL WORK STARTS NOW IN PERSUADING CREDITOR BANKS TO AGREE TO THE DEAL AND APPROVAL BY EURO DISNEY SHAREHOLDERS ISN'T A FOREGONE CONCLUSION ONE GROUP REPRESENTING INDIVIDUAL SHAREHOLDERS SAID THAT WHILE IT WELCOMED PROGRESS ON THE RESTRUCTURING IT FELT THE PLAN UNFAIRLY HIT SHAREHOLDERS WHO PAID AS MUCH AS 160 FRANCS A SHARE FOR THEIR EURO DISNEY STOCK HARDER THAN WALT DISNEY WHICH PAID 10 FRANCS A SHARE FOR ITS HOLDING THE SHAREHOLDER GROUP DEMINOR SA PROMISED TO PUT FORWARD SOME OF ITS OWN PROPOSALS EVEN IF THE RESCUE PLAN IS APPROVED THE PARK'S FUTURE DEVELOPMENT REMAINS IN DOUBT MORGAN STANLEY INTERNATIONAL ANALYST REBECCA WINNINGTONINGRAM SAYS THAT EURO DISNEY NEEDS THE CRITICAL MASS OF A PLANNED SECOND PARK TO MAKE ITS INVESTMENT A MAJOR SUCCESS THE RESCUE PLAN ONLY RESOLVES THE PROBLEMS AFFECTING THE PARK'S CURRENT BUSINESS 9403150107 940315 MANUFACTURERS AND BUILDERS SHOW OPTIMISM IN STUDY BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MANUFACTURERS ARE THE MOST OPTIMISTIC OVER SHORTTERM BUSINESS CONDITIONS SINCE DUN & BRADSTREET CORP BEGAN POLLING THEM MONTHLY MORE THAN FOUR YEARS AGO IN ADDITION CONSTRUCTION EXECUTIVES SURVEYED CONTINUED TO REPORT STRONG OPTIMISM FOR NEARTERM INCREASES IN NEW ORDERS AND EMPLOYMENT FEBRUARY CONDITIONS COULD BE CALLED MANUFACTURING UTOPIA NEW AND UNFILLED ORDERS INCREASED WHILE FINISHEDGOODS INVENTORIES DECREASED SAID DOUGLAS P HANDLER MANAGER OF ECONOMETRIC ANALYSIS FOR D&B THESE CONDITIONS RESEMBLE THOSE DURING THE LAST FEW MONTHS OF 1993 AND IMPLY STRONG INDUSTRIAL PRODUCTION GROWTH SHOULD CONTINUE INTO THE FIRST HALF OF 1994 HE ADDED THE MONTHLY SURVEY OF 1000 MANUFACTURERS NATIONWIDE INCLUDES A VARIETY OF SECTORS AND SMALL MEDIUM AND LARGE COMPANIES THAT AREN'T WEIGHTED BY SIZE JOSEPH DUNCAN VICE PRESIDENT AND CHIEF ECONOMIST FOR D&B SAID WHEN THE RECOVERY BEGAN THREE YEARS AGO NOBODY FELT GOOD ABOUT IT MR DUNCAN SAID ADDING THAT MANUFACTURERS IN THE PAST HAVE HESITATED TO INCREASE PRODUCTION NOW WE'RE SEEING SUSTAINED DEMAND HE ADDED D&B'S INDUSTRIALSENTIMENT INDEX IN FEBRUARY FOR THE COMING THREE MONTHS ROSE FOR THE THIRD CONSECUTIVE MONTH TO 28 THE HIGHEST LEVEL SINCE JANUARY 1990 THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDING COMPANIES EXPECTING INCREASES IN ORDERS PRODUCTION AND OTHER FACETS OF MANUFACTURING MINUS THE PERCENTAGE EXPECTING DECREASES MANUFACTURERS' EXPECTATIONS ARE FOR BIGGER BACKLOGS AND STABLE FINISHEDGOODS INVENTORIES MR HANDLER SAID GIVEN THAT SITUATION IT'S NO WONDER THAT THE MAJORITY OF FIRMS ARE PLANNING TO INCREASE PRODUCTION THE CONSTRUCTION SURVEY FOUND THAT FOR THE COMING THREE MONTHS THE ORDER BOOKS INDEX ROSE 14 POINTS FROM LAST YEAR'S LEVELS WHILE THE EMPLOYMENT INDEX WAS UP THREE POINTS FROM A YEAR AGO THE INCREASE IN CONSTRUCTION OPTIMISM IS PARTICULARLY NOTEWORTHY SINCE THE SURVEY WAS CONDUCTED AFTER THE US FEDERAL RESERVE BOARD RAISED INTEREST RATES IN EARLY FEBRUARY MR HANDLER SAID CONSTRUCTION EXECUTIVES BELIEVE CONDITIONS ARE SO GOOD THAT INTEREST RATES ARE NOT GOING TO CHOKE OFF GROWTH IN THE INDUSTRY 9403150106 940315 WHO'S NEWS SYMS CORP SYMS CORP NEW YORK ART WEBER 47 YEARS OLD WAS NAMED VICE PRESIDENT FINANCE TREASURER AND CHIEF FINANCIAL OFFICER AT THIS OPERATOR OF APPAREL STORES SUCCEEDING RICHARD DIAMOND WHO LEFT THE COMPANY MR WEBER WAS MOST RECENTLY VICE PRESIDENT OF FINANCE AND ADMINISTRATION AT KIDS R US 9403150105 940315 AUTOS PEELING PAINT ON FORD TRUCKS BECOMES COSTLY BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL FORD MOTOR CO EXECUTIVES SAY THEY WANT TO BOND WITH THEIR CUSTOMERS BUT MANY FORD OWNERS SAY THEY WISH THE COMPANY HAD BONDED THE PAINT TO THEIR VEHICLES THE GRAY PAINT ON JOSEPH MAICHLE'S 1990 FORD F250 PICKUP BEGAN PEELING NOT LONG AFTER HE DROVE IT OFF THE LOT A FORD DEALERSHIP IN HIS HOMETOWN OF FREDERICK MD TOLD MR MAICHLE THAT HIS VEHICLE WAS ELIGIBLE FOR REPAIR UNDER FORD'S OWNER DIALOGUE PROGRAM BUT THE DEALER WOULDN'T MAKE A REPAIR DATE FOR SEVEN MONTHS AND THEN MR MAICHLE LEARNED THAT WHILE THE REPAINTING WOULD TAKE 10 DAYS FORD WOULD ONLY PROVIDE A LOANER VEHICLE FOR FOUR SO MUCH FOR OWNER DIALOGUE FUMES MR MAICHLE WHO SAYS HE WILL SOON BE DRIVING A NEW 1994 GMC SIERRA PICKUP FSERIES PICKUPS ARE CURRENTLY THE BESTSELLING VEHICLE IN THE US BUT PEELING PAINT ON 198591 MODELS AND ON OTHER FORD VEHICLES COULD COST THE AUTO MAKER AS MUCH AS 15 BILLION OVER TWO YEARS ACCORDING TO FORMER EMPLOYEES DEALERS AND INDUSTRY EXPERTS AND WHILE FORD SAYS ITS OWNER DIALOGUE PROGRAM INSTITUTED IN 1992 TO GAUGE CUSTOMER SATISFACTION WITH FSERIES VEHICLES WILL FIX SOME DEFECTIVE PAINT JOBS MANY CUSTOMERS SAY FORD'S PROGRAM IS LESS THAN GENEROUS AND RESULTS IN SOME CUSTOMERS PAYING FOR REPAIRS THAT OTHERS GET FOR FREE A FORD SPOKESPERSON SAYS THAT WHILE THE COMPANY HAS SOME DISGRUNTLED CUSTOMERS MOST ARE SATISFIED FORD WON'T COMMENT ON WHAT THE COMPANY HAS PAID TO REPAINT VEHICLES BUT SAYS THE 15 BILLION FIGURE IS INACCURATE FORD HAS TRACED THE PAINT PROBLEM TO A NEW PROCESS FOR ELIMINATING CORROSION WHICH CAUSED CERTAIN EXTERIOR PAINT COLORS TO PEEL IF EXPOSED TO TOO MUCH SUNLIGHT FORD SAYS SEVERAL YEARS AGO IT REFORMULATED THE PAINT TO PROVIDE GREATER PROTECTION AGAINST SUNLIGHT BUT SOURCES SAY THERE HAVE BEEN COMPLAINTS ABOUT PEELING PAINT ON RECENTMODEL VEHICLES FORD SAYS REPAINTING COSTS 1500 TO 2000 A TRUCK THE COMPANY SAYS IT TRIED TO REACH THE THREE MILLION OWNERS OF 198591 FSERIES PICKUPS AND FULLSIZED BRONCOS BY MAIL AS PART OF THE OWNER DIALOGUE PROGRAM TOM WAGNER FORD'S VICE PRESIDENT OF CUSTOMER COMMUNICATION AND SATISFACTION SAYS ABOUT 50 OF THE COMPLAINTS ON RETURNED SURVEYS WERE PAINT RELATED HE ADDS THAT THE FINAL OWNER DIALOGUE MAILING IS DUE TO GO OUT THIS MONTH BUT THE WAY FORD HAS HANDLED THE OWNER DIALOGUE PROGRAM APPARENTLY LEAVES MANY CUSTOMERS UNSATISFIED CUSTOMERS COMPLAIN OF LONG WAITS TO GET THEIR CARS REPAINTED AND OF RUDE AND UNHELPFUL OWNER DIALOGUE REPRESENTATIVES MR MAICHLE AND SEVERAL OTHER FORDTRUCK OWNERS SAY THEY NEVER EVEN RECEIVED A CUSTOMERSATISFACTION SURVEY FROM FORD FORD SAYS THAT CUSTOMER SATISFACTION IS NO 1 BUT AT THE SAME TIME THEY'RE DOING THEIR LEVEL BEST TO MAKE CONSUMERS PAY FOR FORD'S MISTAKES SAYS CLARENCE DITLOW EXECUTIVE DIRECTOR OF THE CENTER FOR AUTO SAFETY A CONSUMER ADVOCACY GROUP WHAT FORD IS DOING IS A CLASSIC SECRET WARRANTY MR DITLOW ADDS GRANTED TO CUSTOMERS WHO COMPLAIN ABOUT THE PROBLEM BUT NOT OFFERED EQUALLY TO ALL OWNERS CUSTOMERS MAY BE EVEN LESS SATISFIED TO LEARN THAT AS OF JAN 1 FORD CHANGED THE OWNER DIALOGUE PROGRAM TO GIVE CUSTOMERS JUST 60 DAYS TO CLAIM A NEW PAINT JOB ONCE THEY RECEIVE A CUSTOMER SURVEY THE RESPONSE TIME WAS FORMERLY OPENENDED INDUSTRY ANALYSTS SAY FORD HAS GOOD REASON TO PUT A CAP ON ITS EXPOSURE TO CLAIMS ON PAINT JOBS THE COMPANY HAS ALREADY SPENT 800 MILLION REPAINTING FSERIES PICKUPS AND BRONCO SPORT UTILITY VEHICLES IN THE 1993 MODEL YEAR INDIVIDUALS FAMILIAR WITH THE PROGRAM SAY THAT CUT PERVEHICLE PROFITS ON THE NEW VEHICLES FORD SOLD LAST YEAR BY AN AVERAGE OF 231 EACH FORD IS EXPECTED TO SPEND AT LEAST ANOTHER 800 MILLION IN THE CURRENT MODEL YEAR FOR PAINT REPAIRS MORE THAN IT SPENT TO DEVELOP THE NEW MUSTANG THE SOURCES SAY MR WAGNER OF FORD WON'T CONFIRM THESE NUMBERS IT'S A CASE OF WANTING TO BE LOVED BUT AT AN AFFORDABLE PRICE SAYS JOHN SCHNAPP VICE PRESIDENT OF MERCER MANAGEMENT CONSULTING WHICH SPECIALIZES IN THE AUTO INDUSTRY FORD MAY LOSE SOME FRIENDS ALONG THE WAY BUT THEY HAVE TO ASK HOW MUCH IS A FRIEND WORTH FORD EXECUTIVES SAY THE COMPANY IS GOING OUT OF ITS WAY TO MAKE GOOD WITH OWNERS EXPERIENCING PAINTPEELING PROBLEMS OR ANY OTHER PROBLEM THEY MAY HAVE WITH THEIR FSERIES BUT THAT MAY NOT BE ENOUGH TO HOLD OFF THE COMPETITION INDEED THE JD POWER & ASSOCIATES CUSTOMER SATISFACTION STUDY WIDELY FOLLOWED IN THE AUTO INDUSTRY IN 1993 RATED FORD BELOW THE INDUSTRY AVERAGE BEHIND BMW CHEVROLET CHRYSLER DODGE AND EAGLE FORD REMAINS THE LEADING TRUCK BRAND IN AMERICA BUT GENERAL MOTORS CORP'S CHEVROLET C/K PICKUP THE SECOND BESTSELLING VEHICLE IN THE US OVERTOOK FORD'S LEAD IN THE FULLSIZE PICKUP MARKET DURING THE FIRST TWO MONTHS OF THE YEAR CHRYSLER CORP'S NEW DODGE RAM PICKUP IS NOW A STRONG CONTENDER TOO WE WANT TO BOND CLOSER TO OUR OWNER BODY SAYS MR WAGNER FSERIES IS A VERY IMPORTANT VEHICLE LINE AND IT'S FACING A LOT OF COMPETITION 9403150104 940315 TECHNOLOGY SEGA TO ENTER 32BIT VIDEO GAME MARKET IN FALL WITH PRICE BREAK ON HARDWARE BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL SEGA ENTERPRISES LTD PLANS TO BREAK INTO NEXTGENERATION VIDEO GAMES SOONER THAN EXPECTED WITH HARDWARE THAT OFFERS A PRICE BREAK OVER CONTENDERS SUCH AS 3DO CO THE JAPANESE COMPANY'S US UNIT WHICH IS BASED IN REDWOOD CITY CALIF SAID IT WILL SHIP A 149 ACCESSORY THAT PLUGS INTO THE CARTRIDGE SLOT ON ITS GENESIS VIDEO GAME MACHINE ROUGHLY DOUBLING THAT 16BIT SYSTEM'S PERFORMANCE WITH 32BIT PROCESSING POWER AND IMPROVED GRAPHICS SEGA OF AMERICA SAID IT WILL INTRODUCE THE SYSTEM NEXT FALL AND PREDICTED SALES OF 25 MILLION UNITS WORLDWIDE IN ITS FIRST 12 MONTHS ON THE MARKET SEGA'S GENESIS SUPER 32X ACCESSORY CONTAINS THE SAME HITACHI LTD MICROPROCESSOR CHIP AS SATURN THE CODE NAME FOR AN ENTIRELY NEW HARDWARE SYSTEM THAT WILL BE INTRODUCED IN JAPAN NEXT FALL AND HADN'T EXPECTED TO APPEAR IN THE US IN 1995 THE SYSTEM WILL REQUIRE SOFTWARE THAT HAS BEEN DESIGNED TO TAKE ADVANTAGE OF THE NEW CIRCUITRY BUT WILL STILL PLAY EXISTING GAME CARTRIDGES OWNERS OF THE COMPANY'S SEGA CD SYSTEM CAN ALSO PLAY THEIR DISKS WITH THE ACCESSORY WE FULLY EXPECT THE GAME PLAY ON THIS MACHINE TO EXCEED THE CURRENT 32BIT MACHINES ON THE MARKET SAID THOMAS KALINSKE PRESIDENT OF SEGA OF AMERICA AND YOU DON'T HAVE TO PAY 500 FOR IT MR KALINSKE'S COMMENT IS A CRITIQUE OF THE PRICE ON 3DO'S INTERACTIVE MULTIPLAYER THE ONLY CURRENT MANUFACTURER MATSUSHITA ELECTRIC INDUSTRIAL CO RECENTLY CUT THE PRICE TO 499 FROM 699 AFTER 3DO OFFERED TO GIVE AWAY SHARES OF STOCK AS AN INDUCEMENT TO MANUFACTURERS SOME ANALYSTS AGREED THAT THE SEGA STRATEGY COULD CAST A CLOUD OVER 3DO'S ATTEMPT TO BUILD SUPPORT FOR ITS NEW HARDWARE PLATFORM ON THE OTHER HAND 3DO HAS A HEAD START IN DEVELOPING NEW 32BIT GAMES AND OTHER APPLICATIONS SOFTWARE THAT LEAD IS 3DO'S TO CAPITALIZE ON OR NOT SAID JOHN TAYLOR AN ANALYST WITH LH ALTON & CO THERE STILL IS AN OPPORTUNITY FOR 3DO TO ESTABLISH AN INSTALLED BASE IF THEY CAN COME UP WITH A KILLER APPLICATION BOB FARBER 3DO'S SENIOR VICE PRESIDENT OF SALES AND MARKETING SAID IT HAD HEARD OF THE NEW SEGA PRODUCT FROM SOFTWARE DEVELOPERS AND ISN'T PARTICULARLY WORRIED IT SURE LOOKS LIKE THIS IS JUST FURTHER VALIDATION OF WHAT 3DO HAS BEEN SAYING ALL ALONG THAT THE CURRENT GENERATION OF SYSTEMS JUST ISN'T GOOD ENOUGH TO PROVIDE THE LEVEL OF EXPERIENCE THAT CONSUMERS WANT THE OTHER BIG VIDEO GAME PLAYER NINTENDO CO ARGUED THAT ACCESSORIES SUCH AS THE SUPER 32X WILL HAVE LIMITED APPEAL TO SOFTWARE DEVELOPERS WHO MAKE MORE MONEY SELLING GAMES FOR THE HUGE BASE OF INSTALLED 16BIT SYSTEMS NINTENDO TOOK THE DIFFERENT ROUTE OF DEVELOPING AN ACCESSORY CHIP THAT FITS IN 16BIT CARTRIDGES AND IMPROVES THEIR PERFORMANCE MEANWHILE NINTENDO IS WORKING WITH SILICON GRAPHICS INC TO DEVELOP A MORE ADVANCED GAME PLAYER EXPECTED IN 1995 9403150103 940315 LAW LEGAL BEAT EXMERRILL EXECUTIVE SENTENCED TO JAIL TERM FOR INSIDER TRADING BY MARGARET A JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONCLUDING A FUGITIVE'S TREK THAT SPANNED THREE CONTINENTS NAHUM VASKEVITCH FORMER MANAGING DIRECTOR OF MERRILL LYNCH & CO'S LONDON OFFICE WAS SENTENCED TO THREE MONTHS IN PRISON FOR INSIDER TRADING FEDERAL JUDGE MICHAEL B MUKASEY SAID THE ISRAELI CITIZEN WHO WAS ALLOWED SAFE PASSAGE TO THE US IN 1992 AS PART OF PLEABARGAIN DISCUSSIONS THAT DIDN'T BEAR FRUIT UNTIL EARLIER THIS YEAR HAD BEEN REHABILITATED BY HIS OWN ACTIONS LAST MONTH HE PLEADED GUILTY TO ONE COUNT OF SECURITIESLAW VIOLATIONS IN ADDITION TO THE JAIL TERM THE JUDGE ALSO IMPOSED TWO YEARS OF UNSUPERVISED PROBATION ONCE THE MANAGER OF MERRILL'S LONDONBASED MERGERS AND ACQUISITIONS DEPARTMENT THE 46YEAROLD MR VASKEVITCH WAS FIRED IN 1987 AFTER THE SECURITIES AND EXCHANGE COMMISSION UNCOVERED REPEATED INSTANCES IN WHICH HE HAD LEAKED CONFIDENTIAL INFORMATION ABOUT TRANSACTIONS INVOLVING MERRILL CLIENTS TO ISRAELI BUSINESSMAN DAVID SOFER ACCORDING TO PROSECUTORS ON 11 DIFFERENT OCCASIONS BETWEEN 1984 AND 1986 MR SOFER TRADED ON NONPUBLIC TAKEOVER DEALS THEN WIRED PARTIAL PROFITS TO A SWISS BANK ACCOUNT MAINTAINED BY MR VASKEVITCH AMONG THE DEALS WERE WR GRACE & CO'S 1986 SALE OF HERMAN'S SPORTING GOODS TO DEE CORP THE LAST CONFIRMED TIP WAS IN MAY 1986 THE SAME MONTH THE SEC'S INSIDERTRADING INVESTIGATION GAINED INTERNATIONAL PROMINENCE THROUGH ITS SUIT AGAINST DENNIS LEVINE ACCORDING TO PROSECUTORS MR SOFER MADE 4 MILLION AND MR VASKEVITCH THE SON OF A FAMILY OF ISRAELI TOBACCO MERCHANTS EARNED 1030000 WITH WARRANTS ISSUED FOR HIS ARREST MR VASKEVITCH FLED IN 1987 TO ISRAEL FROM WHICH AS AN ISRAELI CITIZEN HE COULD NOT BE EXTRADITED IN EARLY 1991 PROSECUTORS FILED A 45COUNT INDICTMENT AGAINST HIM LATER IN THAT YEAR WHILE ON A TRIP TO CYPRUS HE WAS DETAINED BY US AUTHORITIES BUT RELEASED AFTER IT WAS DETERMINED THAT HE COULD NOT BE EXTRADITED FROM THERE EITHER LATE IN 1991 ACCORDING TO A PROSECUTOR'S LETTER SUBMITTED AT THE SENTENCING HIS ATTORNEYS APPROACHED OFFICIALS AND BEGAN TO DISCUSS A PLEA ARRANGEMENT IN SEPTEMBER 1992 MR VASKEVITCH WAS GIVEN SAFE PASSAGE TO COME TO NEW YORK TO BE DEBRIEFED BY REPRESENTATIVES OF THE US ATTORNEY'S OFFICE IN MANHATTAN AND THE SEC AND THEN RETURN HOME TO ISRAEL SUCH TEMPORARY IMMUNITY FROM ARREST IS WITHIN THE POWER OF PROSECUTORS BUT IS NOT COMMON ACCORDING TO OFFICIALS IN ADDITION TO CONFIRMING WHAT WAS KNOWN HE TOLD THE GOVERNMENT OF 353000 IN ILLEGAL PROFITS FROM PRE1984 TRADES DONE WITHOUT MR SOFER MR VASKEVITCH ALSO DETAILED OTHER TRADES BY MR SOFER WHO HAD SETTLED SEC CIVIL CHARGES AND BEEN GRANTED IMMUNITY FROM CRIMINAL PROSECUTION AND PROVIDED INFORMATION ABOUT ILLEGAL TRADES BY OTHER INDIVIDUALS TWO WEEKS AGO MR VASKEVITCH AGAIN CAME VOLUNTARILY TO NEW YORK AND PLEADED GUILTY TO ONE COUNT OF CONSPIRACY TO TRADE ON INSIDE INFORMATION AT THE SAME TIME HE AGREED TO SETTLE SEC CIVIL CHARGES BY PAYING 28 MILLION IN THE LETTER TO THE JUDGE PROSECUTORS SAID THE ADDITIONAL INFORMATION PROVIDED BY MR VASKEVITCH WAS USEFUL IN CONTINUING INVESTIGATIONS OF INTERNATIONAL INSIDER TRADING BUT THAT THE FIVEYEAR STATUTE OF LIMITATIONS FOR INSIDER TRADING PREVENTED THE US FROM PROSECUTING ANYONE ELSE IN A STATEMENT MERRILL SAID THAT IT HAD COOPERATED FULLY WITH THE SEC IN ITS INVESTIGATION OF MR VASKEVITCH WE HAVE NO REASON TO BELIEVE THAT THE OTHER INFORMATION HE HAS GIVEN RELATES TO ANYONE ELSE AT MERRILL IT ADDED IN IMPOSING THE SENTENCE JUDGE MUKASEY NOTED MR VASKEVITCH'S COOPERATION BUT INDICATED THAT HIS MOTIVE FOR FACING US AUTHORITIES MIGHT NOT BE A PURE ACT OF ALTRUISM OR THE RESULT OF PROSECUTORIAL PRESSURE SINCE 1992 MR VASKEVITCH HAS SERVED AS THE MANAGING DIRECTOR OF OPTIMA LTD A FIRM DESCRIBED BY HIS LAWYERS AS A SMALL TEL AVIVBASED INVESTMENT COMPANY HE OBVIOUSLY WANTS TO DO SOMETHING IN THIS COUNTRY AT SOME POINT SAID THE JUDGE MR VASKEVITCH HAD FACED UP TO FIVE YEARS IN PRISON WHILE PEOPLE PROSECUTED UNDER THE FEDERAL DRUG KINGPIN LAW ARE MOSTLY WHITE THOSE PROSECUTED UNDER ITS CAPITALPUNISHMENT PROVISIONS ARE OVERWHELMINGLY BLACK A CONGRESSIONAL REPORT SAID THE REPORT ISSUED BY THE CIVIL RIGHTS SUBCOMMITTEE OF THE HOUSE JUDICIARY COMMITTEE ANALYZED CASES INVOLVING THE 37 DEFENDANTS AGAINST WHOM THE DEATH PENALTY HAS BEEN SOUGHT UNDER A CAPITALPUNISHMENT PROVISION ADDED IN 1988 TO A BROADER LAW AIMED AT CRACKING MAJOR DRUG RINGS THIS MAY NOT BE INTENTIONAL RACIAL PROSECUTION OF MINORITIES BUT IT SHOWS THAT THERE IS A LOT OF OPPORTUNITY FOR UNCONSCIOUS PREJUDICE TO ENTER INTO THE PROCESS SAID RICHARD DIETER EXECUTIVE DIRECTOR OF THE DEATH PENALTY INFORMATION CENTER THIS WASHINGTONBASED GROUP THAT OPPOSES CAPITAL PUNISHMENT PREPARED THE REPORT FOR THE SUBCOMMITTEE THREEQUARTERS OF THOSE CONVICTED OF PARTICIPATING IN A MAJOR DRUG RING UNDER THE GENERAL PROVISIONS OF THE FEDERAL LAW HAVE BEEN WHITE WHILE FEWER THAN ONEQUARTER HAVE BEEN BLACK ACCORDING TO THE REPORT BUT OF THOSE PROSECUTED UNDER THE LAW'S CAPITALPUNISHMENT PROVISIONS WHICH APPLY TO PEOPLE WHO HAVE BEEN INVOLVED SOME WAY IN A DEATH 29 PEOPLE OR 78 HAVE BEEN BLACK WHILE ONLY FOUR OR 11 HAVE BEEN WHITE ACCORDING TO THE REPORT ANOTHER FOUR DEFENDANTS CHOSEN FOR CAPITAL PROSECUTIONS HAVE BEEN HISPANIC THE REPORT SAID A JUSTICE DEPARTMENT SPOKESMAN RESPONDED BY STRESSING THAT WHILE THE ATTORNEY GENERAL MUST APPROVE OF ALL FEDERAL DEATHPENALTY PROSECUTIONS NEITHER SHE NOR OTHER SENIOR OFFICIALS AT THE AGENCY'S HEADQUARTERS IN WASHINGTON PAY ATTENTION TO THE RACE OF THE DEFENDANTS ATTORNEY GENERAL JANET RENO HAS APPROVED OF 10 DEATHPENALTY PROSECUTIONS ALL OF THEM INVOLVING BLACK DEFENDANTS THE REPORT IS CONSISTENT WITH OTHER STUDIES THAT HAVE CONCLUDED THAT THE DEATH PENALTY HAS BEEN IMPOSED DISPROPORTIONATELY ON BLACK DEFENDANTS SUPREME COURT JUSTICE HARRY BLACKMAN CITED SUCH EVIDENCE LAST MONTH WHEN HE ANNOUNCED THAT HE WOULD NO LONGER VOTE TO UPHOLD ANY DEATH SENTENCES HE IS THE ONLY CURRENT MEMBER OF THE COURT TO TAKE THAT POSITION CRASH VERDICT THE FAMILY OF AN OHIO MAN KILLED IN A 1992 USAIR CRASH WAS PAID 81 MILLION ONE OF THE HIGHEST AMOUNTS EVER AWARDED FOR A US AIRLINECRASH VICTIM AN ATTORNEY FOR THE FAMILY OF DR FRANK FORSHEW A 50YEAROLD SURGEON SAID THE COMPENSATORY AMOUNT REFLECTED AN OHIO FEDERALCOURT JURY'S BELIEF THAT MR FORSHEW WOULD HAVE CONTINUED SUCCESSFULLY WITH HIS MEDICAL CAREER USAIR FLIGHT 405 CRASHED MARCH 22 1992 AT NEW YORK'S LAGUARDIA AIRPORT KILLING 27 OF 51 PEOPLE ON BOARD NO PUNITIVE DAMAGES WERE AWARDED 9403150102 940315 CORRECTIONS & AMPLIFICATIONS PAGING NETWORK INC POSTED AN OPERATING PROFIT FOR 1993 BUT HAD A NET LOSS DUE TO INTEREST EXPENSES IN YESTERDAY'S SMALL STOCK FOCUS COLUMN IT WAS INCORRECTLY STATED THAT PAGING NETWORK HAD AN OPERATING LOSS IN 1993 9403150101 940315 FINANCING BUSINESS HARVARD INDUSTRIES INC HARVARD INDUSTRIES INC UNION NJ SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 125 MILLION OF SENIOR NOTES DUE 2004 PROCEEDS WILL BE USED TO REDEEM PART OF THE AUTOPARTS MAKER'S 14 1/4 PAYABLEINKIND EXCHANGEABLE PREFERRED STOCK AS WELL AS TO PREPAY EXISTING BANK DEBT AND FOR OTHER APPLICATIONS 9403150100 940315 TECHNOLOGY THE VISION THING GETS ANOTHER LOOK FROM IBM'S CHIEF SUMMER STATEMENT HAUNTS GERSTNER WHO STRESSES STRATEGY IN ANNUAL REPORT BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER MONTHS OF BEING BADGERED ABOUT THE VISION THING LOUIS V GERSTNER JR CHAIRMAN OF INTERNATIONAL BUSINESS MACHINES CORP SEEMS TO BE GETTING READY TO SPEAK OUT IN IBM'S NEWLY RELEASED AND REMARKABLY CANDID ANNUAL REPORT MR GERSTNER DELIVERS A SOBERING RUNDOWN ON THE COMPANY'S PROBLEMS AND DEVOTES MORE THAN ONETHIRD OF HIS LETTER TO INVESTORS TO THE QUESTION OF STRATEGY CLEARLY HAUNTED BY HIS STATEMENT LAST SUMMER THAT THE LAST THING IBM NEEDS RIGHT NOW IS A VISION MR GERSTNER MENTIONS THE BROUHAHA AND NOW SAYS THAT SETTING STRATEGIES IS OUR SINGLE HIGHEST PRIORITY AFTER MAKING IBM PROFITABLE HE ADDS WE ARE HARD AT WORK DAY AND NIGHT DEVELOPING TOUGHMINDED STRATEGIES FOR EVERY ONE OF OUR BUSINESSES ANTICIPATION IS HIGH THAT MR GERSTNER COULD DELIVER A MAJOR STRATEGY PRONOUNCEMENT AS SOON AS NEXT WEEK WHEN HE MEETS WITH ANALYSTS FOR HIS FIRST MAJOR ADDRESS SINCE TAKING OVER IBM AS EMPLOYEES CUSTOMERS AND INVESTORS WAIT IN SUSPENSE TO HEAR WHAT HE WILL SAY SOME CLUES EMERGE IN HIS LETTER TO FELLOW INVESTORS WHATEVER THE STRATEGY IS MR GERSTNER ISN'T GOING TO BE OVERREACHING UNLIKE PREVIOUS HEADS OF IBM WHO EXPRESSED CONFIDENCE THAT ANY PROBLEMS COULD BE OVERCOME MR GERSTNER SOUNDS MORE LIKE THE LITTLE ENGINE THAT COULD HE IS BEING CAREFUL TO HEDGE HIS BETS WITH STATEMENTS SUCH AS ALMOST A YEAR LATER I THINK WE CAN DO IT HE HAS LEARNED THAT CUSTOMERS WANT TECHNOLOGY THAT'S EASY TO USE AND CAPABLE OF PAYING OFF IN TANGIBLE WAYS SO HE IS PUTTING MORE EMPHASIS ON SYSTEMS INTEGRATION HELPING CUSTOMERS FIGURE OUT HOW TO SOLVE THEIR BUSINESS PROBLEMS EVEN IF IT MEANS BUYING OTHER BRANDS MR GERSTNER TALKS ABOUT A BORDERLESS WORLD WHERE NETWORKING TECHNOLOGIES AND NEW WIRELESS CAPABILITIES WILL LET PEOPLE FLIT AMONG TELEVISION SETS TELEPHONES AND COMPUTERS IN THEIR CARS OFFICES OR CLASSROOMS JUST BY SPEAKING TO THEIR MACHINES ABOVE ALL MR GERSTNER SAYS HE WILL PROCEED SANS ARROGANCE WHILE THE OLD IBM HAD THE REPUTATION OF BEING ARROGANT THAT WAS PROBABLY TRUE AT SOME POINT IN THE PAST BUT IT'S NOT GOING TO HAPPEN ON MY WATCH 9403150099 940315 FINANCING BUSINESS CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC NEW ORLEANS REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 15 MILLION COMMON SHARES WITH AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 225000 SHARES THE MANAGING UNDERWRITERS ARE RAYMOND JAMES & ASSOCIATES INC KEMPER SECURITIES INC AND PRINCIPAL/EPPLER GUERIN & TURNER INC 9403150098 940315 NINTENDO UNIT UNVEILS DEVICE REDMOND WASH NINTENDO CO'S US UNIT ANNOUNCED A 5999 DEVICE THAT ALLOWS SOFTWARE FOR ITS HANDHELD GAME BOY PLAYER TO BE PLAYED ON TELEVISION SETS THROUGH ITS STANDARD VIDEO GAME SYSTEM THE DEVICE CALLED SUPER GAME BOY FITS IN A CARTRIDGE SLOT IN THE COMPANY'S SUPER NINTENDO ENTERTAINMENT SYSTEM IT CONVERTS BLACKANDWHITE IMAGES TO VARYING SHADES OF FOUR COLORS ON THE TELEVISION SCREEN AND ALLOWS PLAYERS TO CUSTOMIZE COLORS AND DESIGNS NINTENDO OF AMERICA SAID 9403150097 940315 MARKETING & MEDIA WALL STREET JOURNAL STARTS NEWS VENTURE WITH A POLISH PAPER BRUSSELS THE WALL STREET JOURNAL EUROPE AND GAZETA WYBORCZA LAUNCHED A WEEKLY POLISHLANGUAGE BUSINESSNEWS SECTION CONTAINING ARTICLES FROM THE JOURNAL FOR THE POLISH NEWSPAPER THE SUPPLEMENT CONSISTS PRIMARILY OF ARTICLES TRANSLATED INTO POLISH FROM THE WALL STREET JOURNAL EUROPE WITH ADDITIONAL ARTICLES FROM THE ASIAN WALL STREET JOURNAL AND THE WALL STREET JOURNAL PUBLISHED BY DOW JONES & CO GAZETA WHICH IS POLAND'S LARGEST DAILY NEWSPAPER AND PRINTS MORE THAN 500000 COPIES DAILY INCLUDED THE INAUGURAL 16PAGE SUPPLEMENT IN MONDAY'S EDITIONS KAREN ELLIOTT HOUSE VICE PRESIDENT INTERNATIONAL OF DOW JONES SAID THE WEEKLY SECTION ALLOWS US TO PROVIDE JOURNAL NEWS TO CENTRAL EUROPE'S LARGEST ECONOMY WITH THE REGION'S FASTESTGROWING PRIVATE SECTOR LAST WEEK DOW JONES ANNOUNCED AGREEMENTS WITH EIGHT NEWSPAPERS IN LATIN AMERICA TO PROVIDE THEM WITH A SPANISHLANGUAGE BUSINESSNEWS SECTION THE SECTION WILL BE PUBLISHED IN THE MORNING EDITIONS OF THE NEWSPAPERS MONDAY THROUGH FRIDAY AND WILL CONSIST OF NEWS FROM THE WALL STREET JOURNAL IN ADDITION TO THE JOURNAL AND ITS INTERNATIONAL EDITIONS DOW JONES PUBLISHES BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESSINFORMATION SERVICES INCLUDING DOW JONES TELERATE AND COMMUNITY NEWSPAPERS 9403150096 940315 BOMBARDIER SELECTS DOWTY MONTREAL BOMBARDIER INC SAID IT SELECTED DOWTY AEROSPACE LANDING GEAR CANADA TO SUPPLY THE LANDING GEAR FOR BOMBARDIER'S PLANNED LONGRANGE BUSINESS JET DOWTY A UNIT OF TI GROUP PLC OF BRITAIN IS THE THIRD RISKSHARING PARTNER NAMED BY BOMBARDIER TO HELP DEVELOP ITS GLOBAL EXPRESS JET A BOMBARDIER SPOKESMAN SAID EIGHT OR NINE PARTNERS ARE EXPECTED TO BE NAMED THE PARTNERS WILL SHOULDER ABOUT HALF OF THE AIRCRAFT'S DEVELOPMENT COST OF AROUND 800 MILLION CANADIAN DOLLARS US588 MILLION EXCLUDING THE ENGINE BOMBARDIER MAKES TRANSPORTATION EQUIPMENT 9403150095 940315 MONDAY'S MARKETS BONDS FALL BUT STOCKS DOLLAR GAIN INVESTORS AWAIT DATA ON PRICES STRENGTH ABROAD HELPS SHARES BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL NERVOUS INVESTORS KNOCKED BOND PRICES LOWER AHEAD OF TODAY'S INFLATION REPORT STOCKS EDGED HIGHER AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE INCHED UP 028 POINT TO 386298 STANDARD & POOR'S 500STOCK INDEX ROSE 095 TO 46739 AND THE NASDAQ COMPOSITE INDEX GAINED 360 TO 79280 ANALYSTS SAID THE MOOD IN THE RAVAGED BOND MARKET REMAINS GRIM WALTER C REVIS MARKET ANALYST AT HAMILTON INVESTMENTS IN CHICAGO SAID BOND PRICES FINISHED THEIR SIXTHSTRAIGHT LOSING WEEK ON FRIDAY AND THAT PESSIMISM IS AT ITS WORST LEVEL SINCE OCTOBER 1987 WITH SUCH A BACKDROP BOND TRADERS WERE EXTREMELY CAUTIOUS BEFORE TODAY'S REPORT ON FEBRUARY PRODUCER PRICES ADDING TO ANXIETIES IS TOMORROW'S RELEASE OF FEBRUARY CONSUMER PRICE INDEX HOWEVER MR REVIS SAID GOOD INFLATION NEWS COULD SET OFF A BOND RALLY SIMPLY BECAUSE THE GLOOM IS SO PERVASIVE STOCK PRICES WERE BUOYED BY STRENGTH IN OVERSEAS MARKETS AND AN EASING OF USJAPANESE TRADE TENSIONS ANALYSTS SAID STOCKS SEEM TO BE ABLE TO MAKE SOME HEADWAY AS LONG AS BONDS ARE NOT FALLING DRAMATICALLY MR REVIS SAID OVERSEAS EUROPEAN STOCKS SURGED ON BRIGHTER PROSPECTS FOR FURTHER INTERESTRATE CUTS IN GERMANY AND ELSEWHERE HOPES IMPROVED AFTER A WAGE SETTLEMENT FOR GERMANY'S PUBLICSECTOR UNIONS CAME IN BELOW THE INFLATION RATE GERMAN SHARES SURGED 32 FRENCH STOCKS 18 AND BRITISH SHARES 13 BUT THE EUROPEAN STOCK MARKET RALLY ISN'T JUST AN INTERESTRATE STORY SAID WARREN OLIVER A EUROPEAN ECONOMIST AT SG WARBURG IN LONDON HE SAID SIGNS OF ECONOMIC GROWTH IN EUROPE ALSO ARE FUELING THE STOCK MARKETS IN ASIA JAPANESE SHARES ROSE 2 AMID EASING OF TRADE TENSIONS WITH THE US WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 043 TO 11590 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 260139000 SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1159 ISSUES ROSE AND 949 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL MORE THAN 1/2 POINT OR MORE THAN 5 FOR EACH 1000 FACE AMOUNT TO YIELD 695 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16900 MARKS AND 10610 YEN COMPARED WITH 16825 MARKS AND 10500 YEN FRIDAY 9403150093 940315 WHO'S NEWS NEW YORK STOCK EXCHANGE INC NEW YORK STOCK EXCHANGE INC NEW YORK SIR COLIN M MARSHALL BRITISH AIRWAYS PLC CHAIRMAN AND CHIEF EXECUTIVE OFFICER 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 REPRESENTING THE PUBLIC DERYCK C MAUGHAN CHAIRMAN AND CEO OF SALOMON INC'S SALOMON BROTHERS UNIT 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 9403150092 940315 INDUSTRY FOCUS DRUGTESTING FIRMS FACE PLUSES MINUSES IN NEW RULES COVERING MORE WORKERS WILL SPUR BOTH COMPETITION AND OPPORTUNITIES BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW FEDERAL REGULATIONS THAT WILL DOUBLE THE NUMBER OF WORKERS REQUIRED TO BE TESTED FOR DRUG AND ALCOHOL USE ON THE JOB POSE BOTH CHALLENGES AND OPPORTUNITIES FOR THE 500 MILLION DRUGTESTING INDUSTRY THE INITIAL PUSH FOR TESTING IN THE MID1980S PROMPTED BY SEVERAL FATAL TRAIN AND SUBWAY ACCIDENTS DREW MANY NEW COMPANIES INTO THE TESTING BUSINESS BUT THE FIELD DIDN'T TURN OUT TO BE QUITE THE BONANZA MANY HAD HOPED FOR MANY LABS THAT GOT INTO THE MARKET GOT CAUGHT TWO WAYS EXPLAINS DR IAN MACDONALD THE REAGAN ADMINISTRATION'S DRUGPOLICY CZAR FROM 1987 TO 1989 TESTING DIDN'T BECOME AS WIDESPREAD AS EXPECTED AND PRICE COMPETITION FORCED MANY SMALLER COMPANIES TO BAIL OUT BUT BY INCREASING THE NUMBER OF WORKERS TO BE TESTED AND BY POSSIBLY EXPANDING THE TYPES OF TESTS PERMITTED THE NEW RULES MANDATED BY THE TRANSPORTATION DEPARTMENT ARE ONCE AGAIN DRAWING NEW COMPETITORS INTO THE FIELD AS WELL AS OFFERING LUCRATIVE NEW OPPORTUNITIES TO THE BIGGER PLAYERS FOR THE FIRST TIME THE GOVERNMENT IS REQUIRING BOTH RANDOM ALCOHOL AND DRUG TESTING EACH YEAR OF 25 OF TRANSPORTATION WORKERS IN SUCH SAFETYSENSITIVE JOBS AS TRUCKING AVIATION RAILROADS AND PIPELINES BEFORE ONLY RANDOM DRUG TESTING WAS REQUIRED THE NEW RULES ALSO IMPOSE BOTH DRUG AND ALCOHOL TESTING FOR THE FIRST TIME ON MASSTRANSIT WORKERS AND EXPAND DRUG TESTING TO INTRASTATE TRUCKERS AND BUS DRIVERS SOME 75 MILLION WORKERS ARE EXPECTED TO BE TESTED EACH YEAR UNDER THE NEW RULES UP FROM 35 MILLION BEFORE IN ADDITION TESTING IS ON THE RISE GENERALLY AS MORE COMPANIES TEST JOB APPLICANTS AND EMPLOYEES IN 1993 85 OF 630 COMPANIES SURVEYED BY THE AMERICAN MANAGEMENT ASSOCIATION REPORTED DRUGTESTING PROGRAMS UP FROM 75 A YEAR EARLIER INCLUDING 73 OF MANUFACTURERS AND 66 OF FINANCIALSERVICE COMPANIES THE NUMBER OF COMPANIES WITH DRUGTESTING PROGRAMS HAS NEARLY TRIPLED SINCE 1987 FINAL RULES COVERING TRANSPORTATION COMPANIES TAKE EFFECT JAN 1 1995 FOR LARGER COMPANIES GENERALLY WITH 50 OR MORE EMPLOYEES IN SAFETYSENSITIVE WORK AND A YEAR LATER FOR SMALLER COMPANIES THE TESTS APPLY TO A WIDE RANGE OF JOBS FROM DRIVERS OF SCHOOL BUSES AND TRUCKS FOR MOMANDPOP BUSINESSES TO AIRLINE PILOTS AND ATTENDANTS THE DOT ALSO IS CONSIDERING EXPANDING THE TYPES OF ALCOHOLSCREENING EQUIPMENT THAT IT PERMITS THE DEPARTMENT NOW ALLOWS ONLY BREATH TESTS FOR ALCOHOL USING MACHINES WHOSE ACCURACY HAS WIDELY BEEN UPHELD BY THE COURTS BUT COMPANIES SEEKING A WIDER CHOICE OF LESSEXPENSIVE SMALLER AND EASIERTOUSE SCREENING EQUIPMENT HAVE PERSUADED REGULATORS TO CONSIDER APPROVING OTHER DEVICES SUCH AS SALIVA TESTS EXPANDED TEST PROCEDURES COULD GIVE A BOOST TO COMPANIES SUCH AS TINY ENZYMATICS INC HORSHAM PA WHICH HAS DEVELOPED A SALIVA TEST FOR ALCOHOL WHILE ALSO BENEFITING SOME OF ITS HUGE COMPETITORS SMITHKLINE BEECHAM CLINICAL LABORATORIES A UNIT OF SMITHKLINE BEECHAM PLC OF LONDON AND ROCHE BIOMEDICAL LABORATORIES INC A UNIT OF SWITZERLAND'S ROCHE HOLDING AG DOMINATE THE DRUGTESTING MARKET EACH WITH A 20 SHARE OTHERS INCLUDE METPATH A UNIT OF CORNING INC OF CORNING NY AND NATIONAL HEALTH LABORATORIES INC OF LA JOLLA CALIF THE BIGGER COMPANIES SHARE THE DRUGTESTING MARKET WITH SCORES OF OTHERS NEARLY 90 COMPANIES ARE APPROVED BY THE GOVERNMENT FOR DRUG TESTING MANY OF THEM PRIVATELY HELD GEARING UP FOR NEW BUSINESS SMITHKLINE COLLEGEVILLE PA PLANS TO LAUNCH THIS MONTH A NEW URINECOLLECTION DEVICE THAT TAKES TWO SAMPLES AT ONCE REFLECTING A NEW RULE THAT PERMITS WORKERS TO GET A SECOND OPINION ELSEWHERE IF THE FIRST SAMPLE TURNS UP POSITIVE FOR DRUGS SMALLER COMPANIES ALSO ARE SCRAMBLING AS REGULATORS CONSIDER EXPANDING THE TYPES OF SCREENING TESTS ENZYMATICS FOR INSTANCE IS HUSTLING TO CONVINCE REGULATORS THAT ITS SALIVABASED TEST IS A MUCH LESS EXPENSIVE AND QUICKER BUT EQUALLY ACCURATEMETHOD FOR ALCOHOL TESTING WE'RE PUTTING ALL OUR EGGS INTO THAT BASKET CHRIS ZALESKY VICE PRESIDENT OF OPERATIONS SAYS BUT MAKERS OF OTHER SIMPLER DEVICES MAY BE DISAPPOINTED DRUG SCREENING SYSTEMS INC BLACKWOOD NJ A MAKER OF A SIMPLE ONSITE TEST FOR DRUGS THAT IS THE SIZE OF AN INDEX CARD FAILED TO CONVINCE REGULATORS THAT ITS TEST FOR DRUG ABUSE IS ACCURATE ENOUGH TO GAIN APPROVAL WE DON'T WANT TO FALSELY IDENTIFY EMPLOYEES SAYS A DOT LAWYER COMPANIES WITH REGULATED PIPELINES AND TRUCKS SUCH AS SHELL OIL CO ROYAL DUTCH/SHELL GROUP'S US SUBSIDIARY WILL STEP UP TESTING UNDER THE NEW RULES SHELL HAS BEEN TESTING WORKERS SINCE 1986 LARGELY AMONG WORKERS IN SAFETYSENSITIVE AND ENVIRONMENTALLY SENSITIVE AREAS SUCH AS REFINERIES CHEMICAL PLANTS AND PIPELINE PROJECTS LIKE SCHOOL DISTRICTS AND BUS COMPANIES ACROSS THE COUNTRY SHELL WILL HAVE TO EQUIP ITSELF WITH SOPHISTICATED BREATHTESTING MACHINES TO MEET THE NEW ALCOHOLTESTING RULES ONLY FIVE COMPANIES FOUR OF THEM PRIVATELY HELD CURRENTLY MAKE EQUIPMENT THAT MEETS DOT STANDARDS AVAILABILITY OF EQUIPMENT IS GOING TO BE A REAL ISSUE SAYS DEXTER GORDON PRESIDENT OF DRUG INTERVENTION SERVICES OF AMERICA INC A PRIVATELY HELD HOUSTON CONCERN THAT COORDINATES DRUG TESTING FOR COMPANIES ANOTHER SMALL COMPANY US ALCOHOL TESTING OF AMERICA INC SAYS IT EXPECTS REVENUE TO SIGNIFICANTLY IMPROVE BEGINNING WITH ITS FISCAL SECOND QUARTER ENDING SEPT 30 FROM NEW ORDERS FOR BREATHTESTING MACHINES THE RANCHO CUCAMONGA CALIF COMPANY THE ONLY PUBLICLY TRADED COMPANY WITH AN APPROVED BREATHTESTING DEVICE IS A RELATIVE NEWCOMER TO THE FIELD BEHIND PRIVATELY HELD LEADERS CMI INC A UNIT OF MPD INC OWENSBORO KY AND INTOXIMETERS INC ST LOUIS WHICH EXPECTS THE NEW BUSINESS TO AT LEAST TRIPLE ITS SALES THE SIMPLEST MACHINES MEASURE ALCOHOL LEVELS IN A PERSON'S BREATH AND PRINT THE RESULTS THE MOST SOPHISTICATED ONES HAVE COMPUTER MEMORIES AND ONLINE REPORTING CAPABILITIES AND CAN AUTOMATICALLY PHONE AN EMPLOYER IF A READING IS POSITIVE OTHER COMPANIES WITH APPROVED BREATHTESTING DEVICES ARE NATIONAL DRAEGER INC OF PITTSBURGH A UNIT OF GERMANY'S DRAEGERWERK AG AND NATIONAL PATENT ANALYTICAL SYSTEMS INC OF MANSFIELD OHIO SMITHKLINE AND ROCHE ESTIMATE THE NEW RULES WILL ADD ABOUT 125 MILLION IN REVENUE BY 1995 TO THE CURRENT 500 MILLION ANNUAL MARKET FOR TESTS AMONG SOME 20 MILLION US WORKERS 9403150091 940315 WHO'S NEWS AMOCO CORP AMOCO CORP CHICAGO FLORIS A MALJERS 60 YEARS OLD WAS ELECTED TO THE BOARD OF THIS OIL AND NATURAL GAS COMPANY EFFECTIVE APRIL 26 MR MALJERS IS CHAIRMAN OF UNILEVER NV OF ROTTERDAM NETHERLANDS HIS ELECTION WILL INCREASE THE NUMBER OF MEMBERS TO 14 FOLLOWING A DECREASE TO 13 ON APRIL 1 WHEN FREDERICK S ADDY 62 RETIRES FLORIS A MALJERS CHAIRMAN OF UNILEVER NV WAS NOMINATED TO JOIN AMOCO CORP'S BOARD THE RESULT OF AMOCO SHAREHOLDERS' VOTE ON THE NOMINATION WILL BE ANNOUNCED AT THE COMPANY'S APRIL 26 ANNUAL MEETING TUESDAY'S WHO'S NEWS COLUMN INCORRECTLY STATED THAT MR MALJERS HAD ALREADY BEEN ELECTED 9403150089 940315 TAIWAN'S OVERSEAS INVESTMENT TAIPEI TAIWAN TAIWAN'S OVERSEAS INVESTMENT APPROVED BY THE GOVERNMENT TOTALED 856 MILLION US IN THE FIRST TWO MONTHS OF THIS YEAR UP 122 FROM 385 MILLION A YEAR EARLIER THE INVESTMENT COMMISSION REPORTED THE AGENCY ATTRIBUTED THE INCREASE IN THE PERIOD MAINLY TO EXPANDING INVESTMENT IN THE US WHICH LEAPED 73 9403150088 940315 ABREAST OF THE MARKET STOCKS INCH UP HELPED BY RISE IN TECHNOLOGY AND BANKING ISSUES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCK PRICES MANAGED TO EDGE HIGHER AMID CONCERN ABOUT A WEAK BOND MARKET AND THIS WEEK'S EXPECTED INFLATION NEWS TECHNOLOGY AND BANKING ISSUES PROVIDED MUCH OF THE FUEL FOR THE ADVANCE THOMAS MCMANUS A MARKET ANALYST AT MORGAN STANLEY SAID ELSEWHERE SHARE PRICES WERE MIXED THE DOW JONES INDUSTRIAL AVERAGE ADDED A SCANT 028 OR 001 TO 386298 BROADBASED INDEXES THAT TRACK MOSTLY NEW YORK STOCK EXCHANGE ISSUES POSTED SOMEWHAT LARGER GAINS WHILE THE RALLY IN COMPUTERRELATED ISSUES MADE FOR AN EVEN BIGGER ADVANCE ON THE NASDAQ MARKET ADVANCING ISSUES LED DECLINERS 1159 TO 949 ON THE BIG BOARD VOLUME ON THE EXCHANGE EASED TO ABOUT 260139000 SHARES FROM 303211000 FRIDAY IT WAS THE FIRST TALLY UNDER THE BUSY 300 MILLION LEVEL SINCE TUESDAY THE JUMP IN TECHNOLOGY STOCKS WAS PART OF A CONTINUING ADVANCE IN THE GROUP OBSERVERS SAID I THINK A LOT OF THE NEW MONEY COMING IN IS GOING INTO TECHNOLOGY IT IS THE GROUP WITH THE UPWARD MOMENTUM NOW SAID LARRY KINNEY HEAD OF OVERTHECOUNTER TRADING AT SOUNDVIEW FINANCIAL BANKS MEANWHILE WERE SEEN REBOUNDING FROM RECENT WEAKNESS BANKING STOCKS HAVE BEEN BATTERED ALONG WITH THE BOND MARKET OVER THE PAST MONTH MORGAN STANLEY'S MR MCMANUS NOTED THAT THE GROUP HAS BEEN WEAK SINCE LAST FALL THE STANDARD & POOR'S 500 STOCK INDEX ADVANCED 095 OR 020 TO 46739 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 048 OR 019 TO 25901 AND THE DOW JONES EQUITY MARKET INDEX CLIMBED 100 OR 023 TO 44282 THE NASDAQ COMPOSITE INDEX JUMPED 360 OR 046 TO 79280 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADVANCED 208 OR 045 TO 46806 THE MARKET'S GAINS WERE KEPT IN CHECK BY INFLATION WORRIES A LABOR DEPARTMENT READING ON WHOLESALE LEVEL PRICES IS SCHEDULED FOR RELEASE TODAY TO BE FOLLOWED TOMORROW BY A REPORT ON CONSUMER PRICES ECONOMISTS EXPECT THE PRODUCER PRICE INDEX TO CLIMB 04 AND THE CONSUMER PRICE INDEX TO RISE 03 THE BOND MARKET ALSO HURT BY JITTERS ABOUT THE DATA WAS A DEPRESSANT FOR STOCKS THE TREASURY'S 30YEAR SECURITY SKIDDED 9/16 POINT LIFTING ITS YIELD TO 695 AMONG OTHER COMPUTERRELATED STOCKS UNISYS ROSE 1/2 TO 16 1/4 DIGITAL EQUIPMENT GAINED 1 3/8 TO 32 3/8 AND COMPAQ COMPUTER JUMPED 3/4 TO 102 ON NASDAQ INTEL CLIMBED 1 3/8 TO 70 MICROSOFT INCREASED 2 1/8 TO 83 7/8 AND ORACLE ADDED 7/8 TO 35 3/8 CHEMICAL BANKING ADVANCED 1 1/2 TO 37 7/8 AFTER MERRILL LYNCH ANALYST JUDAH KRAUSHAAR RAISED HIS INTERMEDIATETERM RATING ON THE STOCK TO BUY FROM ABOVE AVERAGE HE SAID THE NEW YORK BANK COULD BENEFIT FROM NEW COSTCUTTING MOVES AND FROM INCREASED REVENUE FROM ITS CREDIT CARD OPERATIONS WALT DISNEY LOST 1 1/8 TO 45 7/8 THE COMPANY AND REPRESENTATIVES OF SOME OF ITS BANKS AGREED TO RESTRUCTURE DEBT OF ITS EURO DISNEY UNIT THE PACT WHICH STILL MUST BE APPROVED BY OTHER LENDERS INCLUDES FORGIVENESS OF SOME INTEREST PAYMENTS AND A SIX BILLIONFRANC 105 BILLION RIGHTS ISSUE KEMPER CORP WAS UNCHANGED AT 40 7/8 ON THE BIG BOARD BUT ROCKETED TO 57 IN COMPOSITE TRADING AFTER THE EXCHANGE'S CLOSE GENERAL ELECTRIC'S GE CAPITAL UNIT SAID IT OFFERED TO ACQUIRE KEMPER FOR 55 A SHARE GE MAY INCREASE ITS BID IT SAID THE OFFER WAS REBUFFED BY THE FINANCIAL SERVICES CONCERN GE WAS UNCHANGED AT 105 1/4 IT WASN'T INITIALLY ACTIVE AFTERHOURS GRUMMAN ADDED 5/8 TO 65 3/8 AS NORTHROP BEGAN ITS 60ASHARE TENDER OFFER FOR THE BETHPAGE NY AEROSPACE CONCERN THE LOS ANGELES COMPANY LAST WEEK DISCLOSED PLANS TO LAUNCH A BID TAKING ON MARTIN MARIETTA WHICH HAD ALREADY AGREED TO ACQUIRE GRUMMAN FOR 55 A SHARE INVESTORS MEANWHILE ARE EXPECTING NEW HIGHER OFFERS NORTHROP ADDED 7/8 TO 42 1/4 MARTIN MARIETTA ADDED 3/8 TO 44 7/8 BEST BUY RALLIED 3 3/8 TO 64 5/8 THE STOCK HAS BEEN STRONG FOR MORE THAN A MONTH AIDED RECENTLY ANALYSTS SAID BY THE ELECTRONICS RETAILER'S STRONG FEBRUARY SALES REPORT A SPOKESMAN FOR THE COMPANY SAID IT DIDN'T KNOW ANY SPECIFIC REASON FOR YESTERDAY'S SHAREPRICE GAIN FEDERAL EXPRESS INCREASED 3 TO 70 5/8 THE DOCUMENTDELIVERY SERVICE REPORTED THIRDQUARTER EARNINGS OF 312 MILLION OR 55 CENTS A SHARE UP FROM 85 MILLION OR 15 CENTS A SHARE A YEAR AGO THE LATEST PERIOD WHICH ENDED FEB 28 INCLUDED A PRETAX GAIN OF 109 MILLION FROM THE SALE OF AIRCRAFT EQUIPMENT WILLIAM DODGE MARKET STRATEGIST AT DEAN WITTER REYNOLDS SAID THE STOCK MARKET REMAINS VULNERABLE TO NEW SELLING IF THE BOND MARKET CONTINUES TO SLIDE THE EQUITY MARKET IS STILL STRUGGLING WITH INTEREST RATES I STILL THINK THERE IS SOME MODEST DOWNSIDE RISK HE SAID THE RISK IN BONDS THOUGH HAS DIMINISHED MR DODGE SAID YESTERDAY MORNING HE RECOMMENDED THAT CLIENTS INCREASE THEIR BOND HOLDINGS TO 35 OF THEIR PORTFOLIOS FROM A PREVIOUSLY SUGGESTED 25 HIS RECOMMENDED ALLOCATION TO CASH WAS TRIMMED TO 5 FROM 15 THE STOCK RECOMMENDATION WAS LEFT UNCHANGED AT 60 9403150087 940315 WHO'S NEWS NYNEX CORP NYNEX CORP WHITE PLAINS NY EUGENE M BULLIS 48 YEARS OLD WAS NAMED TO THE NEW POST OF VICE PRESIDENT OF INTERACTIVE SERVICES AT NYNEX INFORMATION RESOURCES CO A UNIT OF THIS BELL TELEPHONE COMPANY THAT PUBLISHES MORE THAN 300 YELLOW AND WHITE PAGES DIRECTORIES MR BULLIS FORMERLY SENIOR VICE PRESIDENT FOR FINANCE AND STRATEGY AT NYNEX'S AGS COMPUTERS INC SUBSIDIARY WILL OVERSEE DEVELOPMENT OF ELECTRONIC SHOPPING AND ONLINE YELLOW PAGES AT THE PUBLISHING UNIT 9403150086 940315 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 CIT GROUP HOLDINGS INC 100 MILLION OF SENIOR NOTES DUE MARCH 21 1997 PRICED AS 575S AT 99878 TO YIELD 5795 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CIT GROUP HOLDINGS IS OWNED BY CHEMICAL BANKING CORP AND DAIICHI KANGYO BANK LTD DEEPTECH INTERNATIONAL INC 82 MILLION OF SENIOR SECURED NOTES DUE DEC 15 2000 PRICED AT 99722 TO YIELD 125 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED BA3 BY MOODY'S AND TRIPLECPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP FEDERAL HOME LOAN BANK SYSTEM 207 MILLION OF NOTES DUE MARCH 22 1999 PRICED AT PAR TO YIELD 621 ACCORDING MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK SYSTEM 80 MILLION OF NOTES DUE MARCH 24 1997 PRICED AT PAR TO YIELD 553 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR ONE YEAR AND WAS PRICED AT A SPREAD OF 18 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF NOTES DUE MARCH 21 1997 PRICED AT PAR TO YIELD 547 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 10 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF MEDIUMTERM NOTES DUE MARCH 22 2004 PRICED AT PAR TO YIELD 719 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 69 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC EMPHESYS FINANCIAL GROUP INC INITIAL OFFERING OF 105 MILLION COMMON SHARES PRICED AT 22 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO NOVELLUS SYSTEMS INC 15 MILLION COMMON SHARES PRICED AT 38 EACH THROUGH UNDERWRITERS LED BY HAMBRECHT & QUIST INC NN BALL & ROLLER INC INITIAL OFFERING OF 23 MILLION COMMON SHARES PRICED AT 14 EACH THROUGH UNDERWRITERS LED BY MCDONALD & CO SECURITIES AND WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1716 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 177 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES OFFERED BY NOMURA SECURITIES INTERNATIONAL INC THE OFFERING REMIC TRUST 199463 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 755 AND WEIGHTED AVERAGE MATURITY OF 358 MONTHS AUSTRIA SOVEREIGN 200 BILLION ITALIAN LIRE OF 85 EUROBONDS DUE OCT 15 2004 AT ISSUE PRICE 10015 VIA DEUTSCHE BANK AG LONDON BONDS YIELD 876 AFTER DEDUCTING FEES OF TWO CREDIT LOCAL DE FRANCE FRENCH AGENCY 200 MILLION OF EUROBONDS DUE APRIL 26 1999 TO BE PRICED TUESDAY AT 23 TO 26 BASIS POINTS OVER FIVEYEAR US TREASURY VIA LEAD UNDERWRITER FUJI INTERNATIONAL FINANCE PLC THE BORROWER'S SENIOR DEBT OUTSTANDING IS RATED TRIPLEA BY MOODY'S AND BY S&P DAIWA INTERNATIONAL FINANCE CAYMAN LTD JAPANESE PARENT 50 BILLION YEN OF STEPDOWN EXCHANGEABLE SUBORDINATED EUROBONDS DUE MARCH 31 1998 AT ISSUE PRICE PAR VIA SALOMON BROTHERS INTERNATIONAL LTD GUARANTOR DAIWA BANK LTD INDICATED COUPON 225 DECLINING BY 025 POINT EVERY YEAR TO 125 BONDS EXCHANGEABLE INTO DAIWA BANK COMMON SHARES AT INITIAL INDICATED PREMIUM 10 EXCHANGE PRICE REVISED ANNUALLY FROM FIRST ANNIVERSARY AT 25 OVER PREVAILING SHARE PRICE FEES 25 FORD CREDIT EUROPE PLC US PARENT 200 MILLION MARKS OF 6 EUROBONDS DUE MARCH 30 1999 AT ISSUE PRICE 10155 VIA MERRILL LYNCH BANK AG REOFFERED AT 9935 TO YIELD 615 A SPREAD OF 50 BASIS POINTS ABOVE GERMAN GOVERNMENT NOTE OF AUGUST 1998 FEES 25 9403150084 940315 PEPPERAND SALT BALANCE THE BUDGET OUR MORAL ONE IS WORSE SHELTERS FOR TAXES WHILE PEOPLE GO SHELTERLESS DOESN'T THAT SEEM PERVERSE THE WORLD IS FULL OF PROBLEMS IF MOSES CAME DOWN FROM MOUNT SINAI TODAY THE TWO TABLETS HE'D CARRY WOULD PROBABLY BE ASPIRIN A CUP UPON THE TABLE 9403150082 940315 DEMOCRATS STRIVE TO MAINTAIN MAJORITY THAT CAN MOVE A HEALTHREFORM BILL BY DAVID ROGERS AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS ON THE HOUSE WAYS AND MEANS COMMITTEE STRUGGLED TO PRESERVE A FRAGILE WORKING MAJORITY CAPABLE OF AT LEAST MOVING A HEALTHREFORM BILL TO THE FULL COMMITTEE FOR ACTION NEXT MONTH THE QUESTION IS NOT WHAT WILL GO OUT BUT WHETHER ANYTHING WILL GO OUT SAID REP FORTNEY PETE STARK CHAIRMAN OF THE HEALTH SUBCOMMITTEE WHICH IS SLATED TO BEGIN VOTING ON THE MEASURE TODAY I THINK BY FRIDAY WE WILL KNOW FAILURE TO ACT WOULD BE A MAJOR BLOW TO THE CHANCES FOR HEALTH REFORM THIS YEAR IN CONGRESS GIVEN THESE STAKES SUBCOMMITTEE DEMOCRATS WHO CAUCUSED YESTERDAY FACE IMMENSE PRESSURE FROM PARTY LEADERSHIP TO RESOLVE THEIR DIFFERENCES NO ONE MAKES A DECISION IN THIS BUSINESS UNTIL THEY HAVE TO REP JAMES MCDERMOTT D WASH SAID LAST NIGHT THE DELIBERATIONS ILLUSTRATE THE IMMENSITY OF THE REFORM INITIATIVE AND HOW EVEN RELATIVELY LIKEMINDED DEMOCRATS CAN BECOME HUNG UP ON THE CHOICES BEFORE THEM MR MCDERMOTT WANTS MORE GENEROUS BENEFITS REP SANDER LEVIN D MICH A CLOSE ALLY OF MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI FRETS ABOUT THE BURDEN ON BUSINESS INTENSIFIED BY A TEMPORARY PAYROLL TAX PROPOSED BY MR STARK I'M NOT UNHAPPY I'M THINKING SAID MR LEVIN MAKING LIGHT OF HIS WORRIEDLOOKING APPEARANCE THERE IS MORE IN COMMON THAN DIFFERENCES BUT THE DIFFERENCES ARE IMPORTANT THE ALTERNATIVE BEFORE THE PANEL WOULD ABANDON OR STREAMLINE MAJOR PARTS OF THE CLINTON ADMINISTRATION'S OWN HEALTH PLAN AND SUBSTITUTE A NEW GOVERNMENTRUN MEDICARELIKE PROGRAM TO ACHIEVE UNIVERSAL HEALTH COVERAGE THE BASIC BENEFIT PACKAGE IS CHEAPER THAN THE ADMINISTRATION'S BUT WITHOUT SUBSIDIES SMALL EMPLOYERS WOULD STILL HAVE TO ABSORB PREMIUMS OF ABOUT 2000 A YEAR PER WORKER THOUGH MOST ATTENTION HAS FOCUSED ON THE PLAN'S IMPACT ON BUSINESS CONSERVATIVES SAY THE DEMOCRATS' OWN LABOR CONSTITUENCY WILL ULTIMATELY PAY IN REDUCED WAGES TO BOLSTER ITS CASE THE HERITAGE FOUNDATION WILL RELEASE AN ECONOMIC ANALYSIS TODAY ARGUING THAT AVERAGE ANNUAL WAGES COULD FALL BY ABOUT 189 OVER SEVERAL YEARS AS EMPLOYERS SHIFT COSTS OF THE CLINTON PLAN ONTO THEIR WORKERS WAGES OF EMPLOYEES IN COMPANIES THAT ALREADY OFFER HEALTH COVERAGE WILL BE ABOUT 400 OR 09 HIGHER THAN THEY OTHERWISE WOULD BE ACCORDING TO THE REPORT PREPARED BY THE HEALTHPOLICY RESEARCH FIRM LEWINVHI INC WAGES AT FIRMS THAT DON'T CURRENTLY OFFER COVERAGE COULD DROP BY AS MUCH AS 1243 OR 61 AN EMPLOYER MANDATE IS IN A REAL SENSE MEANINGLESS SAID STUART BUTLER A HERITAGE POLICY DIRECTOR THE LION'S SHARE OF THIS MONEY IN OTHER WORDS COMES OUT OF THE WORKER'S PAYCHECK NOT THE EMPLOYER'S PROFITS WHILE THE ADMINISTRATION PROMISES TENS OF BILLIONS IN SUBSIDIES TO SOFTEN THE IMPACT OF ITS PLAN THE WAYS AND MEANS PANEL HAS YET TO DECIDE HOW TO ADDRESS THE PROBLEM ALTHOUGH BUSINESS SUBSIDIES ARE THE MOST CONVENTIONAL APPROACH A MORE DIRECT OPTION WOULD BE TO BORROW A PAGE FROM HERITAGE'S OWN ARGUMENTS AND DIRECTLY AID LOWERWAGE WORKERS THROUGH SOME TYPE OF TAX CREDIT ONE OF THE MOST STRIKING FEATURES OF THE HEALTHCARE DEBATE IS HOW GOP CONSERVATIVES ARE OFTEN MORE AGGRESSIVE THAN DEMOCRATS IN USING THE TAX CODE TO INFLUENCE THE INSURANCE MARKET AND THE WAY CONSUMERS PICK THEIR HEALTH COVERAGE SEN DON NICKLES R OKLA A HERITAGE ALLY AND REP JIM MCCRERY R LA A MEMBER OF THE WAYS AND MEANS HEALTH SUBCOMMITTEE ARE BOTH PROPONENTS OF DIFFERENT SCHEMES THAT WOULD FORCE WHOLESALE CHANGES IN THE TAX TREATMENT OF HEALTHINSURANCE COSTS AND THOUGH THEY ARE FAR TO THE RIGHT OF MOST OF THEIR DEMOCRATIC COLLEAGUES THE IDEAS THEY OFFER COULD YET BE PART OF A FINAL COMPROMISE THIS YEAR AT THIS STAGE HOWEVER MR STARK MUST RELY ENTIRELY ON HIS FELLOW DEMOCRATS AND WITH ONLY A 74 MAJORITY IN THE SUBCOMMITTEE THE CALIFORNIA LIBERAL CAN'T AFFORD MORE THAN ONE DEFECTION WHILE THE MEDICARE MODEL IN THE BILL BEARS HIS OWN STAMP HE HAS COMPROMISED ELSEWHERE TO HOLD TOGETHER DIVERSE CAMPS RANGING FROM ADVOCATES OF A FULLFLEDGED GOVERNMENTRUN SYSTEM ON THE LEFT TO THOSE SUPPORTING A PRIVATEMARKET MANAGEDCOMPETITION SCHOOL OF REFORM TESTIMONY BY STAFF YESTERDAY OUTLINED SPECIFIC MEDICARE SAVINGS IN THE BILL THAT WOULD PARE FEDERAL PAYMENTS FOR TEACHING HOSPITALS AND OFTEN INNERCITY HOSPITALS THAT CARE FOR A DISPROPORTIONATE SHARE OF THE POOR BUT THE TOTAL MEDICARE SAVINGS ARE STILL SIGNIFICANTLY LESS THAN WHAT THE ADMINISTRATION HAS PROPOSED REFLECTING THE LIBERAL BENT OF THE SUBCOMMITTEE WHILE MOST ATTENTION HAS FOCUSED ON THE WAYS AND MEANS COMMITTEE DEMOCRATS ON THE HOUSE EDUCATION AND LABOR COMMITTEE WILL BEGIN MEETINGS TODAY TOWARD CRAFTING THEIR OWN VERSION OF THE PRESIDENT'S PLAN AND THE PARTY LEADERSHIP IN THE ENERGY AND COMMERCE COMMITTEE IS TESTING SUPPORT FOR ITS OWN ALTERNATIVE WHICH WOULD ALSO ALTER THE CLINTON PLAN BUT NOT INCLUDE THE GOVERNMENTRUN MEDICARE OPTION IN THE STARK BILL THE CLOSEDDOOR NEGOTIATIONS CONTRAST WITH WHAT WILL BE THE FIRST IN A SERIES OF OXFORDSTYLE FREEWHEELING DEBATES ON THE HOUSE FLOOR TOMORROW ON THE SAME HEALTH ISSUE THE 90MINUTE EVENT TO BE BROADCAST LIVE ON TELEVISION AND RADIO IS TO INCLUDE SEVERAL MEMBERS FROM BOTH PARTIES ON THE WAYS AND MEANS HEALTH PANEL AND SEEMS LIKELY TO ADD TO THE STAKES IN THE VOTES THIS WEEK